FRIDAY 20 NOVEMBER 2015
00
Gillian Tett
Who should pay for defence
against cyber attacks? — PAGE 11
Senior managers blamed for HBOS
collapse face only limited penalties
3 Report finds inquiry ‘materially flawed’ 3 Ban from financial services the stiffest sanction
CAROLINE BINHAM AND EMMA DUNKLEY
A much-delayed report into the 2008
collapse of HBOS heaped blame on the
bank’s board, top management and its
regulators but any further action
against them will take at least two more
years and be limited to industry bans.
The damning investigation into the
group’s £20bn failure raised the pros-
pect of a fresh probe into the conduct of
senior managers.
Written by independent barrister
Andrew Green and commissioned by
regulators, it concluded that another
investigation into HBOS was “plainly in
the public interest” following a “materi-
ally flawed” original probe that sanc-
tioned only one person.
Andrew Bailey, head of the Prudential
Regulation Authority, said the report
“concluded that the board and senior
executive management of HBOS failed
Rolls-Royce feels heat as
ValueAct doubles stake
US activist investor ValueAct has
doubled its stake in Rolls-Royce to
10 per cent, prompting other top
shareholders to call for it to be given
a board seat to help revive the ailing
engineering group. ‘It is time to think
seriously about how the company can
be turned round,’ said one. ValueAct’s
move raised the pressure on chief
executive Warren East to change
strategy after five profit warnings.
Report iPAGE 15
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Arms bazaar
Gun running has made Belgium a launch
pad for Europe’s jihadis — BIG READ, PAGE 9
‘Senior management
of HBOS failed to
challenge a flawed
business model ’
Andrew Bailey
Prudential Regulation Authority
to set an appropriate strategy, and also
failed to challenge a flawed business
model”. It has now been passed to Sajid
Javid, business secretary, who has over-
sight of company directorships and can
strip people of their roles in any sector.
But the worst penalty any individual
could face from financial regulators —
and only after a fresh investigation is
completed, which typically would take
two years — is a ban from working in
financial services. That is because the
old statute of limitations that applies in
this case prevents the Financial Conduct
Authority from fining individuals after
three years have passed.
“Will this report give Joe Public even
an ounce of reassurance that his faith in
the financial services industry can be
rebuilt? I doubt it,” said Philip Mead-
owcroft, a former private small share-
holder in HBOS. “Will Joe Public feel
that government and the City are really
Former Tory treasurer Cruddas gives
£1m to campaign for Britain’s EU exit
JIM PICKARD
CHIEF POLITICAL CORRESPONDENT
Peter Cruddas, the former Tory treas-
urer, is giving £1m to the campaign for
Britain to leave the EU in a boost to the
coffers of Vote Leave as the rival camps
step up their fundraising efforts.
The donation from the self-made multi-
millionaire who founded online trading
company CMC Markets, is the biggest
yet for the Out cause. The scale of the
gift underlines how both sides are fund-
raising in earnest as they mobilise ahead
of the referendum on EU membership
in either 2016 or 2017.
The Out campaign is convinced it will
have far greater financial power than in
the previous European referendum in
1975, when the In campaign spent 11
times as much as its opponents.
In an interview with the Financial
STOCK MARKETS
Nov 19 prev %chg
S&P 500 2079.71 2083.58
Nasdaq Composite 5074.28 5075.20
Dow Jones Ind 17719.19 17737.16
FTSEurofirst 300 1502.33 1495.83
Euro Stoxx 50 3451.46 3431.92
FTSE 100 6329.93 6278.97
FTSE All-Share 3471.04 3446.61
CAC 40 4915.10 4906.72
Xetra Dax 11085.44 10959.95
Nikkei 19859.81 19649.18
Hang Seng 22500.22 22188.26
FTSE All World $ 270.36 268.55
WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.
Half empty
Why smart cups don’t hold water
PERSONAL TECHNOLOGY, PAGE 12
Briefing
i Pfizer set for US fight over Allergan deal
Pfizer is gearing up for a US fight provoked by fears
that a deal to buy Ireland’s Allergan would deprive
the US of billions of dollars in taxes, threaten jobs
and erode the country’s science base.— PAGE 15
i Robinson to retire from public life
Peter Robinson, Northern Ireland’s first minister
and the key Unionist voice of recent years, is to
retire from public life, kicking off a contest for the
leadership of Ulster Unionism.— PAGE 3
i Cameron to outline key defence review
Prime minister David Cameron will on Monday set
out what security chiefs believe is the most
important statement on Britain’s defence strategy
since the cold war.— PAGE 4
i Argentina presidential poll turnround
A month ago, Daniel Scioli, the chosen
successor to Cristina Fernández as
president of Argentina, seemed sure
to win against his centre-right rival
Mauricio Macri, right, with his
campaign based on fear. Yet it is Mr
Macri who now seems set to win on Sunday.— PAGE 5
i EM valuations fall to historic low
The sell-off in emerging market equities has pushed
valuations to an all-time low, reflecting their marked
underperformance since the immediate aftermath
of the global financial crisis.— PAGE 28
i Credit Suisse to shun ‘risky activities’
Credit Suisse plans to stop its bankers from engaging
in “overly risky activities” by not setting external
profit targets. Bankers will focus on support for
private banking and wealth management.— PAGE 18
quite good pals and government will be Left to right: “consider whether any former senior i Bombardier sells 30% stake in train unit
careful not to offend or punish the City Lord Stevenson, managers of HBOS should be the subject Quebec’s public pension fund is to buy a 30 per cent
in a material way? I think so.” James Crosby of an enforcement investigation with a stake in Bombardier’s train-making unit for $1.5bn,
Criticising the previous City regulator, and view to prohibition proceedings”, with a after the ailing group shelved a plan to float shares in
the report said the Financial Services Andy Hornby decision early next year. the subsidiary after a strategic review.— PAGE 19
Authority should have at least investi- Those managers include Mr Hornby,
gated HBOS’s former chief executive, soon to be chief operating officer of bet- Datawatch
Andy Hornby, adding: “The failure to do ting and gaming company Ladbrokes
so was not reasonable.” Coral following a merger; Lord Steven-
HBOS, one of the UK’s biggest lenders, son, HBOS’s first and only chairman; Most pressing problems
was given emergency public assistance ‘Will Joe and James Crosby, Mr Hornby’s prede- faced by SMEs in the EU
of up to £25.4bn to keep it afloat under a
secret Bank of England programme
Public cessor and a deputy chairman of the
FSA — a position that he had to forgo in Per cent
2011 2014
0 5 10 15 20 25
from October 2008. It was rescued via a feel that 2009 following a storm over his alleged Finding customers Brussels’ annual
government-ordained takeover by
Lloyds Banking Group, with the tax-
government conflict of interest. The report said Mr
Crosby’s presence on the watchdog’s
Availability
of skilled staff
report on small
and medium-sized
payer taking a 42 per cent stake in the and the board while still HBOS chief executive Regulation enterprises shows
that finding
Competition
merged bank. Only one HBOS senior
executive, corporate division chief Peter
City are “could have resulted in the FSA treating
HBOS more leniently”, although the Access to finance customers
Cummings, was ever sanctioned, receiv- really quite review found no evidence of that. Cost of production
or labour
remained the most
pressing problem
ing a fine and partial ban in 2012.
The PRA and FCA, successor bodies to
good pals? Analysis page 2
Editorial Comment page 10 Source: European Commission
for SMEs in 2014.
the FSA, confirmed that they will now I think so’ Lombard page 20
Times, Mr Cruddas predicted that Vote party after being caught up in a
Leave would spend close to £20m by the newspaper sting three years ago.
time that votes are cast. “We are confi- Mr Cruddas subsequently won a libel
dent we will raise that. There are some action against The Sunday Times over
big businesses, big business names that allegations that he was willing to
are with us, but they haven’t declared arrange meetings with the prime minis-
yet,” he said. ter in return for donations.
Most of the big names to reveal their The referendum would be the biggest
stances so far on either side have been political event in several decades, he
City financiers. Last week saw two said. “I think this will be the Scottish
hedge fund executives emerge as big referendum times 10. It is a much wider,
donors to the In campaign: David Hard- bigger issue which also has implications
ing of Winton Capital Management and across the union,” he said.
John Armitage of Egerton Capital. “There are windows in history
Mr Cruddas is the first big name to whereby the British public decide what
announce a donation to Vote Leave, they want and it’s outside the control of
although the FT recently revealed that politicians. This is one of those events.”
Sir Michael Hintze is expected to give Mr Cruddas said he was very confi-
generously to the campaign. dent that his side would win. “I’ve bet
The intervention is a return to the £1m, although I’ll never get it back,” he
public stage for the City tycoon who was said. “If I was the politicians, I’d hang on
publicly abandoned by the Conservative to my hat.”
World Markets
CURRENCIES INTEREST RATES
Nov 19 prev Nov 19 prev price yield chg
-0.19 $ per € 1.074 1.065 € per $ 0.931 0.939 US Gov 10 yr 99.91 2.26 -0.01
-0.02 $ per £ 1.530 1.521 £ per $ 0.654 0.658 UK Gov 10 yr 100.80 1.91 -0.01
-0.10 £ per € 0.702 0.700 € per £ 1.425 1.429 Ger Gov 10 yr 104.80 0.50 -0.01
0.43 ¥ per $ 122.805 123.580 ¥ per € 131.850 131.576 Jpn Gov 10 yr 101.03 0.30 0.00
0.57 ¥ per £ 187.830 187.966 £ index 93.977 93.966 US Gov 30 yr 99.55 3.02 -0.02
0.81 € index 84.371 84.331 $ index 106.482 106.375 Ger Gov 2 yr 101.49 -0.36 0.00
0.71 SFr per € 1.089 1.085 SFr per £ 1.551 1.550 price prev chg
0.17 COMMODITIES Fed Funds Eff 0.12 0.14 0.02
1.14 Nov 19 prev %chg US 3m Bills 0.14 0.15 -0.01
1.07 Oil WTI $ 41.54 41.95 -0.98 Euro Libor 3m -0.10 -0.10 0.00
1.41 Oil Brent $ 44.07 44.14 -0.16 UK 3m 0.57 0.57 0.00
0.67 Gold $ 1067.75 1079.20 -1.06 Prices are latest for edition Data provided by Morningstar
2 ★ FINANCIAL TIMES Friday 20 November 2015

NATIONAL

Time-consuming probe into HBOS Report fails

to convince
advocates yet another costly inquiry public interest
is being served
Worst that could happen to individuals after an investigation would be a ban from holding financial posts
OPINION
Shaun Curry/AFP

Patrick
CAROLINE BINHAM AND EMMA DUNKLEY
LONDON

The main consequence of the regula-

tors’ costly and time-consuming inquiry Jenkins
into the £20.5bn collapse of HBOS is,

W
wait for it: yet another costly and time- hat can you do in seven
consuming inquiry. years? If you are in the
Around 10 former senior managers financial post mortem
and board members of HBOS — among business, you can spend
them former chief executives James £7m compiling a 549-
Crosby and Andy Hornby, and former page report on the failure of Halifax
chairman Lord Stevenson — may face a Bank of Scotland — and add very little to
further investigation by City regulators, the sum of human knowledge.
seven years after the bank was rescued That is precisely what UK regulators
by a merger with Lloyds Banking Group. have just done, supposedly in the name
That is the principal recommendation of public interest.
of a 549-page report into the bank’s col- The questions that the report sets out
lapse at the height of the financial crisis. to answer about the demise of HBOS in
The report, written by the Financial 2008 are entirely valid — principally,
Conduct Authority and the Prudential why did Britain’s fifth-biggest bank fail,
Regulation Authority, as well as by 2008 Oct and why did only one second-tier man-
Andrew Green QC, lays the blame at the 1000 HBOS HBOS rescued by 1000 ager suffer any sanction?
feet of HBOS’s senior management and Share price (pence) Though it is thorough, the conclu-
Lloyds takeover.
board and also with regulators at the Bank of England 800 sions are very similar to a more concise
now-defunct Financial Services Author- 800 study conducted by the now-disbanded
provides secret
ity. £25bn lifeline Parliamentary Commission on Banking
“Both the strategy of the bank and the 600 600 Standards in the spring of 2013.
2006 2007
FSA were creatures of their time,” The conclusion that yet another
Sir James Crosby FSA evaluation
Andrew Bailey, the head of the PRA, inquiry is required — to decide whether
400 2001 2002 2004 knighted for concludes that 400
said yesterday. “Much has changed to pursue regulatory enforcement
Bank of Financial Services FSA drops contribution to many of the
since that time.” action against former HBOS staff — will
Scotland and Authority identifies serious increase in capital financial services. bank’s problems
The FSA only ever sanctioned one 200 200 do nothing to convince the public that
Halifax merge concerns, including risk requirement Andy Hornby have been
former HBOS executive, Peter Cum- their interests are being served.
to create HBOS that group regulation will becomes chief addressed
mings, in 2012. It did not even launch a It was wrong, as the report acknowl-
not keep pace with growth executive
probe into Mr Hornby because it was 0 0 edges, that the former chief executive,
thought it would be too difficult to pin 2001 02 03 04 05 06 07 08 09 Andy Hornby, was not pursued back in
down personal culpability, yesterday’s 2012, when Peter Cummings, corporate
report revealed. Source: Thomson Reuters Datastream banking chief, was fined £500,000 and
The FCA and PRA, created from the banned from working in financial serv-
ashes of the FSA, which received its In the spotlight ices. His predecessor, James Crosby, and
umpteenth kicking for shoddy decision- Lord Stevenson, chairman, have also
making in the report, said they would escaped censure.
decide whether new probes were war- Lord Stevenson Andy Hornby James Crosby Sir Hector Sants Changing tack now serves little practi-
ranted as soon as possible. cal purpose. A time bar on imposing
Even if the decision is speedy, any new Chairman of HBOS Took the reins from HBOS’s first chief Chief executive of fines has passed and none of the prime
investigation would take at least 18 throughout its Mr Crosby in 2006 executive from the Financial actors works in financial services.
months. And the worst that can happen short lifetime. Lord and oversaw the 2001-06. Described Services Authority Mike Ellis, HBOS’s former finance
is that these individuals are banned Stevenson demise of the bank. in 2013 as the from July 2007; at director, is a fringe exception. Today he
from holding financial positions. “reinforced the Mr Hornby’s “architect of the the helm when is chairman of Skipton Building Society
A statute of limitations that existed culture of strategy was strategy that set the HBOS failed. Only and he may be investigated. But the idea
before 2014 but which applies to the confidence and optimism and, at times, focused on continuous growth. course for disaster” by the Parliamentary one HBOS executive, Peter Cummings, that a huge bank collapse puts a ques-
HBOS collapse prevents the regulator lost some of the objectivity the role In yesterday’s report, Andrew Green QC Commission on Banking Standards. The was fined and banned. Sir Hector said in tion mark over a non-executive at a sec-
from fining any of the individuals who required”, the report said. said: “The FSA, at a minimum, should also report quoted a senior member of HBOS the report “. . . it seemed that you start ond-tier building society in Yorkshire,
may be investigated. have investigated Mr Hornby from early Finance as saying: “. . . the growth factor with Cummings because he looked seven years later, is an odd definition of
Paul Moore, the bank’s former head of 2009 . . . and the failure to do so was not came through loud and clear every time superficially the most culpable” and regulatory justice.
risk who alleges he was fired in 2005 for reasonable.” James [Crosby] spoke . . . It was: ‘We are that “[t]here was never any suggestion The public interest would have been
blowing the whistle on excessive risk- better than the competition. We can grow that, just because you started far better served by a thorough look at
taking, called for the bank’s former sen- faster. We can do this, this, and this’.” there, . . . that’s where you finished”. the next phase of the HBOS story — just
ior managers to waive their right not to where yesterday’s report ends. Lloyds’
be fined. rescue of the bank has cost shareholders
“If not, I will start a campaign to intro- Insolvency Service would defer any senior managers for failures on their a fortune. And that includes taxpayers,
duce a law to remove the limitation can reply before publication. For this decision to launch fresh probes until watch. The FSA came unstuck in a land- who still own nearly 10 per cent of the
period for these individuals,” he said. The report, 35 people made 1,425 after the PRA and FCA had made their mark case, known as Pottage, when it bank following its £20.5bn bailout.
None of the top trio works in financial details representations. There have also been own determinations. The Insolvency tried to do this in 2012. The lack of For Lloyds, HBOS has been toxic —
services. A potential ban could hit other problems of “consent”, a related process Service already looked in 2013 at resources in the FSA’s enforcement divi- costing it £40bn in loan losses and more
former senior managers, such as Mike where the regulator must receive whether to ban the directors and sion hampered its decision-making, than £6bn in redress for the mis-selling
Ellis, chairman of Skipton Building Soci- Chapter and verse that cost approval from an entity before citing decided there was no evidence. yesterday’s report found. of payment protection insurance, on top
ety, or Lindsay Mackay, a director at any statistics attributed to it. Certainly the experience of the With the advent of the new senior of the £9bn acquisition cost.
Alpha Bank.
£7m and took years to write Who wrote it? The Prudential former directors of the Royal Bank of managers’ regime — designed to Sir Victor Blank and Eric Daniels, the
Skipton said Mr Ellis had the full con- Regulation Authority has written the Scotland — the other colossal UK bank- improve accountability in the City — former Lloyds chairman and chief exec-
fidence of its board. What is the purpose of the report? first four chapters on why HBOS failed, ing failure of the financial crisis where possibly providing a swath of new cases utive, who did that deal, have faced even
Lawyers for Mr Crosby, Mr Hornby, To investigate why HBOS collapsed in its dealings with the regulator and its no individual was penalised by the regu- for the regulator to pounce on, it is less music than the old HBOS leader-
Mr Ellis and Mr Mackay all declined to 2008, leading to a government- governance and culture. A separate, lator — does not provide evidence of hoped that this has been addressed. ship. Their idea of creating a dominant
comment, while a lawyer at Ashurst arranged merger with Lloyds Banking fifth chapter on the regulator’s decision- speedy action: the regulators referred Ten years on, and it is not just regula- behemoth, with the blessing of a govern-
representing Lord Stevenson and other Group. making around sanctions after the the matter to the business department tors haunted by HBOS. Lloyds share- ment waiver on their excessive market
board members said: “The report does How long has it taken to write? collapse was written by Andrew Green following a separate report into that holders, still nursing their losses from share, has failed.
not contain evidence that would justify Work started only after 2012, when the QC, a barrister at Blackstone Chambers. bank’s failure. The department in turn the HBOS rescue takeover, are demand- Regulators swear that if HBOS failed
any further enforcement action against watchdog published its first and only How detailed is it? The main report has forwarded the file to the Procurator Fis- ing answers via a £400m lawsuit. today, the repercussions would be very
executives.” enforcement action against Peter 405 pages and the Green chapter 144. cal Service in Scotland, whose case is “The report . . . supports our view different. The new senior managers
Although regulators passed yester- Cummings, an HBOS executive. How much has it cost? About £7m in still ongoing. that Lloyds TSB’s shareholders paid to regime spells out directors’ responsibili-
day’s report to the Department of Busi- Why has it taken so long? There have total. Mr Green’s fees alone came to Even if regulators decide to open new rescue HBOS,” the shareholder group ties, putting them on the hook for far
ness, Innovation and Skills to see if there been at least two rounds of a process £870,000, which equates to roughly investigations, they cannot avail them- said. “We want to understand why the more than rank criminality or gross
are grounds for disqualification of those known as Maxwellisation, under which £2,390 per paragraph. The cost is not selves of new rules that have come into FSA and the government thought it negligence. With luck, blame in any
who hold directorships beyond the those facing criticism in an official borne by the taxpayer; it is paid for out effect since the financial crisis making it proper to encourage this deal”. future bank failure will be properly and
financial sector, the department said the report are sent details in advance and of the regulatory levy on financial firms. easier to pin personal responsibility on Editorial Comment page 10 promptly apportioned.

Stamp duty Regulation

A private bank unlike
any other. Wealthy foreign homebuyers Digital natives too trusting of
shun London after tax rise online ads and information
JUDITH EVANS to 6 per cent in the same period of 2015, HENRY MANCE they need to navigate the online world.”
PROPERTY CORRESPONDENT MEDIA CORRESPONDENT
according to figures compiled exclu- In Ofcom’s research, children were
30 global locations • www.efginternational.com
Asian and Russian homebuyers who sively for the Financial Times by Hamp- Forget their ageist sneering — many shown a list of search results for the
once made up a third of those buying tons, a high-end estate agent. Chinese children know less about the internet term “trainers”, and directed towards
EFGslogan - 112x50mm - Generic ad - Q - Publication : Financial Times advert 2014 (20.08.2014)
property in London’s wealthiest areas buyers were down from 9 per cent of the than they think. the top two results — which were in an
FINANCIAL TIMES newspaper in any manner is not permitted without
have largely deserted the market this total to 3 per cent and Russians were orange box with the word “Ad” written
Number One Southwark Bridge, London SE1 9HL the publisher’s prior consent.
‘Financial Times’ and ‘FT’ are registered trade marks year as emerging market currencies down from 7 per cent to 1 per cent. Research has found that a large propor- in it. Only 31 per cent of those aged 12 to
Published by: The Financial Times Limited, of The Financial Times Limited. plunged against sterling. The fall has coincided with a period of tion of British children lack a basic 15 identified the sponsored links as
Number One Southwark Bridge, The Financial Times adheres to a self-regulation turbulence in Chinese equity markets, understanding of how the web works. advertising. Among those aged 8 to 11,
London SE1 9 HL, United Kingdom. regime under the FT Editorial Code of Practice:
Tel: 020 7873 3000; Fax: 020 7407 5700 www.ft.com/editorialcode
Properties in boroughs such as Kensing- which spread to other Asian emerging Only one in three of those aged 12 to 15 the proportion was 16 per cent.
Editor: Lionel Barber ton, where the average home price is markets, prompting falls in the region’s could identify which Google search Children aged 12 to 15 spend nearly
Reprints £1.5m, were a sought-after asset among currencies against sterling. China’s ren- results were adverts, while one in five three hours a day online — half an hour
Subscriptions and Customer service: Are available of any FT article with your company wealthy buyers seeking an investment minbi is down 6.6 per cent since April. said all information returned by search more than they spend watching TV.
Tel 0800 028 1407; subscriptions@ft.com; logo or contact details inserted if required (minimum
www.ft.com/subscribenow order 100 copies). in a global, politically stable city. In Russia, the war in Ukraine and engines must be true. Nearly one in 10 children named
One-off copyright licences for reproduction of FT But that has changed in 2015, in a shift international sanctions, together with In addition, nearly half did not know YouTube as their preferred source of
Advertising: articles are also available. that estate agents said was partly down lower oil prices, have taken a big toll on that YouTube — dubbed the new chil- “true and accurate” information, more
Tel: 020 7873 4000; ukads@ft.com For both services phone 020 7873 4816, or
Letters to the editor: alternatively, email syndication@ft.com
to turmoil in emerging markets and the country’s economy. The rouble has dren’s TV — is funded by advertising. than double the proportion a year ago.
Fax: 020 7873 5938; letters.editor@ft.com partly to sweeping changes to stamp shed 25 per cent against sterling since The findings, in a report by communi- The most popular answer remained the
Executive appointments: FT Cityline duty, increasing the rate for those buy- April and is down 53 per cent over the cations watchdog Ofcom, come as regu- BBC, with 52 per cent of responses.
Tel: 020 7873 4909; www.exec-appointments.com For real time share prices call 0905 817 1690 or go to
http://www.ft.com/servicetools/ftmobile/cityline. Calls
ing homes worth more than £937,000 past two years. lators struggle to uphold television rules Some consumer groups have long
Printed by: cost 75p/min. This includes rates of 10 per cent on the Transactions in prime London bor- on advertising in the digital age. worried that the internet allows adver-
St Clements Press (1988) Ltd, London, Newsprinters portion of the sale price above £925,000 oughs were down 19 per cent in the first “The internet allows children to learn, tisers greater access to children, com-
(Knowsley) Limited, Merseyside, Newsprinters Newspapers support recycling and 12 per cent on the part above £1.5m. three-quarters of 2015 against a year discover different points of view and pared with the more regulated world of
(Eurocentral) Glasgow, and Smurfit Kappa News The recycled paper content of UK newspapers in
Press Ld, Kells, Ireland 2014 was 78.5% Asians made up 26 per cent of those earlier, according to LonRes research. stay connected with friends and family,” television. Parents are now more likely
buying homes in areas such as Kensing- UK nationals made up 42 per cent of said James Thickett, Ofcom’s research to be concerned about companies col-
©Copyright The Financial Times Limited 2015. All ton, Chelsea and Belgravia in the first buyers this year, against 36 per cent last director. “But these digital natives still lecting children’s personal data than
rights reserved. Reproduction of the contents of this
three-quarters of last year, but that fell year, Hamptons said. need help to develop the know-how about the influence of computer games.
Friday 20 November 2015
Northern Ireland
Robinson to quit
as first minister
and party leader
Arlene Foster and MP
Nigel Dodds seen as main
contenders for positions
VINCENT BOLAND — DUBLIN
Peter Robinson, Northern Ireland’s first
minister and the dominant Unionist
voice for most of the past decade, has
announced he will retire from public life
in a few weeks, kicking off a contest for
the leadership of Ulster Unionism.
Mr Robinson said yesterday that he
would step down as both first minister
and leader of the Democratic Unionist
party, confirming speculation that had
been circulating for weeks. “I have told
the party officers that I don’t intend to
fight the next assembly election,” which
is due next May, he said.
His announcement will spark an
intense leadership contest to succeed
him as leader of the DUP, the largest
party in the devolved administration in
Northern Ireland.
Mr Robinson, 66, has been in hospital
twice in recent months for treatment of
a heart problem. He has also been
engulfed in a scandal sparked by the
£1.2bn sale of a Northern Ireland prop-
erty portfolio to a US private equity
fund. The sale has been tainted by alle-
gations that a £7m “fixer’s fee” was set
aside to pay senior political and busi-
ness figures in Belfast. He has denied
any links to that alleged payment.
A central figure in unionism for 40
years, Mr Robinson laboured for much
of that time in the shadow of Ian Paisley,
the charismatic preacher who led the
party from street militancy into power-
sharing with Irish republicans.
He came to dominate the Northern
Ireland political landscape only after
becoming DUP leader and first minister
in 2008. “He was the brains behind the
bombast of Paisley — the details man,”
said Jon Tonge, professor of politics at
the University of Liverpool who has
studied the DUP closely.
Mr Robinson’s main achievement has
been to keep Northern Ireland’s
devolved institutions from falling apart.
To achieve that he forged a pragmatic
working relationship between hardline
unionists and the equally hardline
nationalists of Sinn Féin, the former
political wing of the IRA.
Despite their political differences, Mr
Robinson and Sinn Féin’s Martin
McGuinness, the deputy first minister
and one-time IRA gunman, hammered
out this week’s agreement to end the
deadlock over political, security and
financial reform that has crippled
Northern Ireland for months.
Charlie Flanagan, the Irish foreign
minister who helped to broker that
agreement, tweeted: “Peter Robinson
was a straight talker. The more I knew
him the more I liked him.”
In an interview with the Belfast Tele-
graph yesterday, Mr Robinson insisted
health was not a factor in his decision.
Instead, he indicated that he thought he
had been in his demanding roles for long
enough and he wished to relax more.
The contest to succeed Mr Robinson is
likely to begin in earnest this weekend
when the DUP holds its annual confer-
ence. It is seen as a choice between
Arlene Foster, the most senior woman in
the almost entirely male ranks of the
DUP, and Nigel Dodds, the MP for North
Belfast and the party’s deputy leader.
The successor will be selected by DUP
members of the Northern Ireland
assembly and its Westminster MPs. The
speculation is that the roles of party
leader and first minister will be split,
with Mr Dodds assuming the former
and Ms Foster becoming Northern Ire-
land’s first woman leader.
★ FINANCIAL TIMES
NATIONAL
Self-made billionaire returns to political fray
Peter Cruddas was shunned
by his party but is feeling no
bitterness in his new role
JIM PICKARD
CHIEF POLITICAL CORRESPONDENT
Three years ago Peter Cruddas was
making the headlines but not in a good
way.
The self-made billionaire — give or
take a few millions — had been accused
by the Sunday Times of offering access
to David Cameron in return for cash
donations. The City financier quit as
Conservative treasurer that day and was
subsequently shunned by the party:
“excommunicated”, in his words.
Yet he went on to sue the newspaper
for libel successfully, although the Court
of Appeal later reduced the award.
Now the 62-year-old is back in the
Brexit. Vote Leave
public eye as co-treasurer of the Vote
Leave campaign for British EU exit, with
a promise to donate £1m towards the
cause: and he seems relaxed about re-
entering the political world.
Speaking at the group’s campaign
offices in Westminster Tower, an office
block on the south of the Thames with
views of parliament, he insists that
there are no hard feelings with the Tory
party: “We’ve all moved on,” he says.
He is still a Conservative and donated
to a handful of MPs before the election.
More recently he bought a table at Sep-
tember’s Carlton Club dinner.
“The prime minister came up, said it
was good to see me again, said it was
good to see me back in the fold,” he says.
But relations are likely to become
awkward once again if, as expected, Mr
Cameron ends up on the In side of the
EU referendum. The prime minister’s
position is likely to be untenable if the
public votes for Brexit.
Does the City entrepreneur feel any
schadenfreude about funding the other
side of the campaign? “Not really,” he
says. “I think it was a difficult situation, I
don’t feel bitter towards the Conserva-
tive party. They got it wrong in their
handling of me, but it doesn’t matter.”
Most of the big names to reveal their
views so far have been City financiers.
Last week saw two hedge fund execu-
tives emerge as big donors to the In cam-
paign: David Harding of Winton Capital
Management and John Armitage of
Egerton Capital.
Matthew Elliott, chief executive of
Vote Leave — talking alongside Mr
Cruddas — concedes that big corporate
names are unlikely to campaign in the
referendum in the way that they had
done in 1975, when groups such as BP,
Shell, J Sainsbury and the London Stock
Exchange funded the In camp.
Yet Mr Cruddas denies the referen-
dum will be funded almost entirely by
3
On the EU vote
‘I think this will be the
Scottish referendum
times 10’
On Out group’s chances
‘I’ve bet £1m, although I’ll
never get it back. If I were a
politician, I’d hang on to
my hat’
On campaign backers
‘Of course we are talking to
hedge funds but . . . we
will not be dominated
by the hedge fund
community. This is not a
big ticket campaign’
Peter Cruddas, right, co-treasurer of
Vote Leave, talks to Matthew Elliott,
chief executive — Rosie Hallam
City millionaires angered by regulation
from Brussels.
There will also be fundraising on the
Vote Leave website for “thousands of
small donors” giving any kind of sum.
“We’re not just a London-centric cam-
paign; we are building a network in the
north and north-east,” he says. “Of
course, we are talking to hedge funds
but . . . we will not be dominated by the
hedge fund community. This is not a big
ticket campaign.”
The tycoon argues that Britain can
survive outside an EU that is simply not
working. “Youth unemployment across
the eurozone is above 40 per cent. Most
eurozone countries have massive debts.
There’s all sorts of problems with the
Schengen agreement,” he says.
The group is competing for funding
and for official Out status — decided by
the Electoral Commission — with a rival
group: Leave.EU, which has aligned
itself with the UK Independence party.
4 ★
Military spending
Global threats raise stakes for defence review
Tricky balance as PM
seeks to protect nation
while cutting deficit
SAM JONES
DEFENCE AND SECURITY EDITOR
David Cameron will on Monday set out
what security chiefs believe is the most
important statement on Britain’s
defence strategy since the cold war.
Back then the threat was monolithic;
now it is diffuse and dynamic.
The Paris terrorist attacks last week
have raised the stakes for the five-year
Strategic Defence and Security Review,
with the prime minister determined not
to repeat some of the mistakes of the last
exercise in 2010.
In this defence review, Russia’s revan-
chism, turmoil in the Middle East, the
Industry hopes for boost as security priorities change
Defence companies seek clear
‘direction of travel’ setting out
where groups need to invest
PEGGY HOLLINGER — INDUSTRY EDITOR
One of the key questions to be answered
in Monday’s Strategic Defence and Secu-
rity Review is what new priorities for
safeguarding the nation will mean for
Britain’s £30bn-a-year industry.
The question has paralysed execu-
tives for the past six months, with many
unwilling to give the go-ahead to certain
investments without knowing where
they might have to put money in future.
Meanwhile the defence sector is
under pressure. Though military budg-
ets in the west are finally beginning to
rise again, UK companies have suffered
in recent weeks. Rolls-Royce, BAE Sys-
tems, Meggitt, Cobham and Chemring
have all delivered downbeat outlooks in
the run-up to the SDSR.
While these warnings have had little
or nothing to do with British defence
spending, the domestic industry’s
robustness should count when setting
out defence and security priorities, says
John Louth, senior research fellow at
Rusi, the military think-tank. “Half of
the spending falls automatically into the
private sector,” he says. “It is really
important to remember that . . . the
health of those businesses is crucial to
our national imperative.”
Industry is confident the recent
emphasis by ministers and military on
“the prosperity agenda” means its con-
tribution to the economy will be more
obviously taken into account when
deciding what ranks as value for money
in purchasing decisions.
ADS, the industry lobby group, says
the defence and security sectors
account for 215,000 direct jobs, includ-
ing 6,500 apprentices, and a further
150,000 indirect jobs, to generate reve-
nues of £30bn a year.
“Industry is much better placed than
in 2010,” said one defence executive.
Still, few know precisely what will be
in the review, apart from a few pre-an-
nouncements. This includes the govern-
ment’s decision to double the fleet of
armed drones from the current 10. But
this will bring little benefit to UK indus-
try as the solution is likely to be a succes-
sor to the current US-made Reaper
drones — known as Protector, a name
devised to promote public acceptance,
according to one defence official.
More attention will be paid to how the
government intends to meet its promise
to increase the number of fighter jets in
service and on its commitment to the
next generation of manned and
Labour leadership
McDonnell caught up in letter row over M15
JIM PICKARD
CHIEF POLITICAL CORRESPONDENT
John McDonnell, the shadow chancel-
lor, has been pictured holding a letter
calling for the scrapping of MI5, the
intelligence service, and for police to
give up their weapons — just hours
after his spokesman denied that he had
signed it.
The disclosure, first reported by the Sun
newspaper, comes at an acutely difficult
time for the Labour party after its
leader, Jeremy Corbyn, came under fire
from his own MPs over his pacifist out-
look after the Paris attacks.
Mr Corbyn started the week saying he
opposed the idea of police being able to
threat of Islamist militants Isis and
growing cyber insecurity will dominate
decision-making.
Perhaps more than at any time since
the fall of the Berlin Wall, the security of
the UK’s citizens is at risk, Whitehall’s
defence mandarins warn.
Those close to Downing Street say Mr
Cameron still regrets the hasty defence
review of 2010, which whipped the Min-
istry of Defence’s chaotic budget into
order but saw huge reductions in mili-
tary strength and the outright scrapping
of some capabilities, such as maritime
surveillance.
“This time around we’re at least going
to see some strategy”, says the UK chief
executive of one of the world’s largest
defence companies. “The last SDSR
started and finished with a budget. The
government and industry are still living
with the consequences.”
Selected defence equipment cuts
% change, 2010-15
-17% -17% -19%
Submarines Destroyers/ Infantry
frigates fighting
vehicles/
personnel
carriers
FT graphic Source: The International Institute for Strategic Studies
Off target
Drones
Lack of strategy blamed
as rivals ‘steal a march’
David Cameron last month pledged to
double the number of killer drones
available to the military from the
existing fleet of 10. But UK industry
will not reap the benefit of that
investment. The new Protector
system, like the Reapers currently in
service, will be made in the US, raising
the question of why Britain has never
developed its own armed unmanned
shoot terrorists on sight, only to drop
that position after criticism from within
his own party.
Fresh news that Mr McDonnell, a
close ally of Mr Corbyn, was only
months ago calling for the police to be
disarmed will amplify questions about
the Labour leadership and its approach
to national security.
The shadow chancellor had signed the
letter released in April by The Socialist
Network as part of a “Socialist Cam-
paign For a Labour Victory” before
May’s general election, the Sun
reported. But his spokesman told the
newspaper on Wednesday that the MP
had never heard of the group.
“This is the first time John has ever
FINANCIAL TIMES
NATIONAL
Mr Cameron will trumpet the 2015
defence review as evidence that his gov-
ernment can maintain national security
— meeting Nato’s target of spending 2
per cent of gross domestic product on
defence — while cutting the deficit.
Intelligence and military agility will
dominate the UK response to emerging
global threats.
Mr Cameron has already promised
both £1.9bn of extra funding over five
years for the Single Intelligence Account
— from which the spy agencies GCHQ,
MI5 and MI6 are funded — as well as
£2bn for the military to spend on special
forces and aircraft.
That will translate readily into more
cyber weapons for GCHQ and more for-
eign agents for MI6. But for the MoD,
notwithstanding headline announce-
ments of more funding, a tricky balance
will still need to be struck.
Procurement. Private sector
-19% -21%
-25%
Transport Attack/ Fighter/
helicopters anti- ground attack carriers/
submarine aircraft
helicopters
system. The answer is both the
exorbitant cost of developing
unmanned systems and a failure to
recognise the important role that they
would come to play. “We failed
because we lacked a strategy,” says
Howard Wheeldon, defence expert.
“Our competitors have stolen a march.”
The UK now buys its military drones
from the US and Israel. However, in
2005, the decision was taken to
support development of an
intelligence drone known as
Watchkeeper. Due to be fully
operational in 2017, the programme is
years late and millions over budget.
Monday’s Strategic Defence and
Security Review should provide some
clarity on how remotely piloted air
systems will fit into future military
plans. The Ministry of Defence is also
considering whether a remotely
piloted aircraft could fulfil its maritime
surveillance needs. Further ahead,
Britain and France are funding a joint
study into the feasibility of an
unmanned combat aircraft as a
possible replacement for Typhoon
from 2030.
seen this letter and certainly never
signed it,” he said at the time.
“He doesn’t support such views, and
only this week John offered his support
to the government to further fund the
security services and police.”
That position unravelled yesterday
morning when a photograph emerged of
the MP grinning and clutching the letter.
Mr McDonnell was under growing
pressure to clarify whether he had
authorised the original response reject-
ing the claims. A spokesperson for Mr
McDonnell said: “John posed in good
faith to stand with a copy of what he
thought were the principles he signed
up to and not the demands which he had
never seen before yesterday.”
Downing Street has made clear to
defence chiefs that while they are pro-
tecting the overall defence budget, they
will not leave existing spending plans
unchanged.
‘We are aiming to keep
our options open in this
SDSR, not narrow them,
as we did in the last’
“There won’t be as many tough deci-
sions as there were before, but they are
still going to have to look at significant
savings to fund some of the new capabil-
ities” says Malcolm Chalmers, director
of UK defence policy at the think-tank
Rusi.
With the government committed to
maintaining troop numbers at current
-33%
-39%
Aircraft Tanker and
transport
amphibious aircraft
ships
Trident
Companies warned
against cost overrun
BAE Systems, Rolls-Royce and
Babcock have been put on watch. The
biggest companies involved in the
renewal of Britain’s nuclear deterrent
have been warned by Michael Fallon,
defence minister, not to allow costs on
the estimated £23bn project to
overrun or the timetable to slip.
The successor to the Royal Navy’s
Vanguard class submarine carrying
Official trips
Cameron’s tanker jet fuels jumbo cost concern
JIM PICKARD, MARK ODELL
AND GEORGE PARKER
The prime ministerial aircraft that
David Cameron plans to use on official
trips is the product of a much-maligned
private finance initiative — pushed by
the last Labour government as a cost-
saving measure — that will cost the tax-
payer £12.3bn over its lifetime.
Senior Conservatives had already
slammed the decision to lease a core
fleet of nine militarised Airbus A330
passenger jets as military refuelling
tankers. Liam Fox, the former defence
secretary, speaking when he was in
opposition in 2010, described the con-
tract as “one of the most absurd pro-
levels, any efficiencies will have to come
from a combination of savings from the
existing equipment plan, and a squeeze
on the services’ wage bill.
Military salaries, the forces have said,
will be fixed at a 1 per cent annual
increase. Many support jobs may be
outsourced. In the equipment budget,
the key will be to “strike a balance with-
out losing capability”, says one senior
naval officer.
The Type-26 frigates due to be built in
the coming years — and already
expected to cost significantly more than
planned — are likely to be a target for
savings and could be delayed by one or
two years.
Even the RAF, which is central to Mr
Cameron’s vision of a more agile mili-
tary, will have to consider its options.
Four air programmes are key: the
number of new F-35s (the US-built
-39% -41%
-100%
Howitzers Main Maritime
and battle patrol
multiple tanks aircraft
rocket
launchers
nuclear warheads and missiles is due
to enter service from 2028. But the
chances of slippage for a wholly new
design could be high. Already there
are reports of official frustration over
slow progress made on infrastructure,
testing and skills requirements in the
£3.3bn assessment phase. “This is one
of the most complex engineering
challenges anyone has ever
undertaken,” said one industry source.
The Strategic Defence and Security
Review is expected to confirm the
government’s commitment to building
at least four 16,000 tonne boats to
carry the missiles. But industry is still
waiting for the final vote in parliament
to press ahead, expected next year.
This could be more difficult now
than a year ago, with Labour’s new
leader Jeremy Corbyn, and the
Scottish National party committed to
unilateral nuclear disarmament. The
government will be keen to see a vote
sooner rather than later, given the
Scottish parliament elections next
May. “They do not want the election to
be a vote on Trident,” the person said.
Peggy Hollinger
curement decisions taken by this
Labour government”.
Those comments came after a damn-
ing report by the National Audit Office
found the complex procurement of the
Voyager tankers was not value for
money.
Downing Street’s decision to proceed
with the £10m plan to refit one of the
tankers came just days before the gov-
ernment announces billions of pounds
of spending cuts.
The government said the plan was
compatible with its austerity drive
because it would ultimately save
£735,000 a year for taxpayers and the
aircraft could continue in its tanker role.
Those savings come from Downing
Friday 20 November 2015
strike aircraft to be launched from the
navy’s two new carriers); the existing
numbers of Typhoon jets; a new mari-
time patrol capability; and a future
unmanned strike aircraft.
Bolstering Typhoon capability would
deliver on the urgent need for greater
operational capabilities in the air in the
Middle East and the Baltic.
The pay-off could be no new commit-
ment to buying more expensive F-35s. A
future unmanned strike aircraft deci-
sion is probably crucial, if only to main-
tain industrial capabilities and set the
ball rolling on research and develop-
ment, but no funding decisions will be
taken until at least the next review.
“We are aiming to keep our options
open in this SDSR,” says one MoD
defence procurement official, “not nar-
row them, as we did in the last.”
Paris terror pages 6 & 7
unmanned combat aircraft. The most
likely option for increasing Britain’s air
power in the short term, according to
Howard Wheeldon, defence expert, is to
extend the lives of older fighter jets,
such as the Tornado, and current gener-
ation Typhoons. The Tornado, which
entered service in 1980 and is still being
used in Iraq, could be kept flying until
2021 or longer, and the Typhoon’s life
stretched from 2030 to 2040.
This is good news for big groups such
as BAE and Rolls-Royce and spare parts
suppliers such as Meggitt. Life exten-
sions will not mean more aircraft pro-
duction, but there will be more mainte-
nance work to keep the older jets flying.
Mr Wheeldon suggests that roughly
50 per cent of BAE’s estimated £2.7bn
revenues on the Typhoon programme
already comes from maintaining the
aircraft. In addition, the longer the
Typhoon’s life, the greater the chance of
upgrades to its capabilities.
There will be a continued strong com-
mitment to renewing the Trident
nuclear deterrent, crucial to Scottish
shipyards and to BAE. The bigger ques-
tion hangs over the development of next
generation battle ships such as the
Type-26. This will be a costly pro-
gramme. One senior naval officer
recently suggested to an audience at the
DSEI arms fair in London that it could
run to as much as £12bn for 13 frigates,
though the official estimate has not
been published.
The government has already indi-
cated its support for the programme by
authorising BAE Systems to buy compo-
nents with long lead times for the first
ships. But it has not yet given the official
go-ahead for production nor confirmed
how many it might want. Yet, whether
the government opts for the originally
planned 13 frigates is less important to
industry than securing the decision to
produce, which is seen as crucial to pre-
serving shipbuilding skills in the UK
once current shipbuilding programmes
end. “The continuous drumbeat of
activity without any breaks is more
important,” says one insider.
Finally, Rolls-Royce and BAE may not
be contenders for submarine-hunting
aircraft to protect nuclear subs and car-
riers. But they and the defence industry
supply chain have an interest in any
opportunities that may arise from a
stated commitment to replace the Nim-
rod maritime programme that was can-
celled amid much controversy in 2010.
Few industry executives expect a
detailed list of programmes to come out
of the SDSR. What industry expects is “a
clear direction of travel”, setting out
where it will have to invest if it is to meet
Britain’s defence and security needs,
says Paul Everitt, ADS chief executive.
Street no longer having to charter pri-
vate flights for prime ministerial visits.
But with the upfront cost of £10m for
the refurbishment, any savings will not
be recouped until 2028, seven years
before the end date of the PFI.
The Royal Air Force said the £10m
would be spent on putting in 10 first and
48 business class seats and reducing the
total number from 291 to 160 seats.
Details of the project will be
announced on Monday as part of the
government’s Strategic Defence and
Security Review.
Mr Cameron had promised five years
ago to cut his travel costs by a quarter,
said Louise Haigh, shadow Cabinet
Office minister.
Friday 20 November 2015
Election. Momentum shift
Fear campaign
falters as
Argentines look
for change
Mauricio Macri is leading early
favourite Daniel Scioli in polls
as voters adjust to end of boom
BENEDICT MANDER — BUENOS AIRES
Fear, it transpires, is not a winning elec-
toral strategy in Argentina.
A month ago, Daniel Scioli looked to
be a shoo-in as next president of Latin
America’s third-largest economy. As the
chosen successor of Argentina’s fiery
leader, Cristina Fernández, he promised
Argentines continuity, albeit a more
moderate version of her populist, free-
spending and nationalist policies.
This Sunday’s presidential election
was his to lose. Especially, it seemed, as
he could paint his centre-right oppo-
nent, Mauricio Macri, as a bloodless
“neoliberal” who would wreak untold
economic pain on his countrymen.
“His ideas, decisions and proposals
are a danger for the whole of our soci-
ety,” Mr Scioli inveighed during Argen-
tina’s first-ever presidential debate last
Sunday. Mr Macri’s promises of change
are a “great lie”, he added.
Turnround:
centre-right
candidate Mauricio
Macri has a
9-point lead, says
pollster Elypsis
Yet now, on the eve of the vote and
with the economy in the doldrums, it is
Mr Macri, the “turnaround candidate”
and pro-business mayor of Buenos
Aires, who is leading the polls — and
with a 9-point lead, according to Elypsis,
a reputed local pollster.
The shift is a striking illustration of
how many countries in the region, such
as Brazil and Venezuela, are also adjust-
ing to the end of a decade-long economic
boom and how voters are rejecting the
governments and charismatic leaders
that presided over them.
Mr Scioli’s fear campaign was a “mis-
take”, said Juan Germano, director of
Isonomia, another local pollster. “Scioli
failed to understand what Argentines
want”, especially after 12 “very intense”
years of being ruled by the imperious
Ms Fernández and Néstor Kirchner, her
late husband. “The desire for a change
among Argentines is pretty clear.”
That became obvious on October 25,
when Mr Macri won 34 per cent of the
vote in the first round. It was not enough
to beat Mr Scioli, who won 37 per cent,
Fiscal woes
Brazilian inflation surge adds
to economic and political crisis
JONATHAN WHEATLEY
Brazilian inflation has risen to its high-
est level in 12 years, adding to negative
data and underlining the mounting
challenges that face the government as
it struggles to steer the country
through a deepening economic and
political crisis.
Inflation in the year to November 15 was
10.28 per cent according to the IBGE,
Brazil’s statistics office. Yet in spite of
rapidly rising prices, the economy is set
to contract by more than 3 per cent this
year, according to a weekly central bank
survey of market economists.
“This is more than stagflation,” said
Alberto Ramos, head of Latin American
research at Goldman Sachs. “This is a
nasty recession accompanied by accel-
erating inflation.”
The government’s main problem is
fiscal. It promised a primary budget sur-
plus this year (before interest pay-
ments) equal to 1.2 per cent of gross
domestic product. Instead, it is on track
to deliver a primary deficit of 2 per cent
of GDP. Its total deficit, including inter-
est, is likely to be 9 or 10 per cent of GDP,
Mr Ramos said.
With government spending out of
control — and with more than 90 per
cent of public spending mandated by
Brazil’s constitution — the public
accounts have sunk deep into the red.
Government debt, internal and exter-
nal, is equal to 66 per cent of GDP and
rising.
While that is less than in other falter-
★ FINANCIAL TIMES 5
INTERNATIONAL
Cracking the whip:
an area with nearly
200,000 cattle is to
stay in Australian
hands Quinn Rooney/Getty
but it put him within spitting distance.
Crucially, Mr Macri also had voter
momentum behind him.
In addition, the government suffered Australia has blocked Chinese bidders’ highlights the balancing act between federal treasurer Scott Morrison
an unprecedented defeat in Buenos
Aires province, Argentina’s largest. Tra-
Land block efforts to buy a A$350m ($250m)
swath of Australian farmland three-
the benefits of inward investment and
concerns over foreign ownership.
said the acquisition of the cattle
station by foreign investors “would
ditionally a stronghold of the ruling Per-
onist party, Mr Scioli had ruled it for the Australia bars quarters of the size of England,
complete with nearly 200,000 cattle,
Chinese bidders led the pack to buy
S Kidman & Co, a family-owned
be contrary to the national interest”,
largely owing to proximity to a
past eight years, The seat instead went
to the fresh-faced María Eugenia Vidal,
formerly Mr Macri’s deputy mayor.
sale to Chinese on the grounds of national interest.
The move, a blow to China’s
voracious appetite for agricultural and
operation that controls pastoral leases
across 101,411 sq km in the outback
and owns roughly 185,000 head of
weapons-testing site. All bidders
subsequently withdrew their offers.
The door is now open for a
It is not just the public that is clamour- food assets, is the first such ruling cattle. But yesterday, following a possible partial sale that does not
ing for change in a country whose stag- under the new government of Prime recommendation from Australia’s breach the national interest.
nating and investment-starved econ- Minister Malcolm Turnbull and Foreign Investment Review Board, Peter Wells
omy is struggling with a widening fiscal
deficit, double-digit inflation, an over-
valued currency and an acute shortage
of dollars. Businesses want change, too.
Early signs that foreign investment is
flowing back into an Argentina on the
verge of change include a $16bn nuclear
deal with China signed last week, while
US businesses have been eagerly send-
ing teams to Buenos Aires to scope out
opportunities.
Financial investors are also hugely
expectant. Argentine equities and
bonds have rallied for the past month as
investors have bet that Mr Macri, a
former president of Boca Juniors, one of
Argentina’s most popular football clubs,
will introduce much-needed economic
reforms and strengthen the country’s
degraded institutions.
“I have never seen such demand for
an Argentine economist,” said Andrés
Borenstein, BTG Pactual’s chief econo-
mist in Argentina. “If Macri wins, there
is going to be a rally. There is a part of the
Macri dividend that is not yet priced in,”
he said, estimating that investors are
assuming a 60 to 80 per cent probability
that Mr Macri will win.
There will be a difficult start for who-
ever triumphs. The dire economic leg-
acy left by Ms Fernández requires
urgent attention. The most immediate
problems are an acute shortage of for-
eign exchange reserves and an overval-
ued currency.
Mr Macri told the Financial Times in a
recent interview that he would lift strict
capital controls implemented four years
ago on “day one” of his presidency,
which will lead to a significant devalua-
tion from Argentina’s official exchange
rate and could stoke inflation already
running at around 20 per cent.
There are also high hopes that the
next government will swiftly settle a
marathon legal dispute with a group of
“holdout” hedge funds that has blocked
Argentina’s access to international capi-
tal markets since it defaulted on $100bn
of debt in 2001.
ing countries such as Greece, the cost of
servicing Brazil’s debt, at about 20 per
cent a year, is astronomical.
“Public debt to GDP is rising by 9 or 10
percentage points of GDP a year,” said
Maarten-Jan Bakkum, senior emerging
markets strategist at NN Investment
Partners. “That’s explosive. The cost is
getting higher quickly. At some point
the market will stop believing that pub-
lic debt is sustainable.”
There have already been jitters. In
September the national treasury can-
celled three bond auctions after inves-
tors backed away.
“Markets are certainly apprehensive,”
said Mr Ramos. “It is imperative that the
government changes its fiscal position.”
Failure to do so could prompt inves-
tors to take their money out of the coun-
try. Evidence of this has already begun
to emerge. Foreign investors attracted
to Brazil by its very high interest rates —
the central bank’s overnight rate is 14.25
per cent — have increasingly taken to
hedging their foreign exchange expo-
sure but this means they give away a
large part of their earnings. It also adds
to pressure on the currency.
The IBGE also reported yesterday that
unemployment had risen to 7.9 per cent
in October, further undermining the
government’s rock-bottom popularity.
Brazil’s deepening crisis has been
helped along by political paralysis, a
result of a far-reaching corruption scan-
dal and a failure by the government of
President Dilma Rousseff to manage a
fragmented Congress.
6 ★ FINANCIAL TIMES Friday 20 November 2015

PARIS TERROR

Migration

Brussels struggles to strike Turkey deal on refugees

Erdogan negotiations with
EU turn ‘sour’ as Ankara
presses for aid package
ALEX BARKER — BRUSSELS
MEHUL SRIVASTAVA — ISTANBUL
A flagship EU-Turkey plan to stem the
migrant flow to Europe is floundering as
Ankara piles pressure on the EU to
deliver on a multibillion-euro aid pack-
age and other elements of the bargain.
The challenge of completing the deal,
hammered out through more than a
month of negotiations, was underlined
during a difficult meeting on Monday
between senior EU officials and Turkish
president Recep Tayyip Erdogan.
According to several people familiar
with the talks, Mr Erdogan baulked as
Jean-Claude Juncker and Donald Tusk,
the respective presidents of the Euro-
pean Commission and Council, pressed
him for a detailed timetable for meas-
ures intended to discourage migrants in
Turkey from continuing their journey
to Europe. These include tightening
border controls and awarding work
rights to 2m Syrian refugees.
One senior official familiar with the
discussion said the meeting turned
“sour” as Mr Erdogan demanded
Europe move first on its pledges.
Ankara is seeking €3bn in support, reg-
ular Turkey-EU summits and a clear
political path to open several chapters in
stalled EU membership talks. There was
also disagreement as to whether the
EU’s planned financial assistance pack-
age covers one or two years of aid.
According to another European offi-
cial briefed on the meeting, Mr Erdogan
at one point referred to Mr Juncker as
the former premier of Luxembourg, “a
country the size of a Turkish city”. Yes-
terday Mr Juncker described the meet-
ing as “sportive and exhausting”.
Senior German and other EU officials
are convinced Mr Erdogan has the
power to dramatically cut the outflow
from Turkey and want to see tangible
results by the end of the year. But it
remains unclear how much Turkey can
actually do to make that happen, even if
it reaches an agreement with the EU.
Frans Timmermans, the commis-
sion’s vice-president, went to Ankara
yesterday to meet Feridun Sinirlioglu,
Turkey’s foreign minister, to rescue the
potential deal. It was supposed to have
been fleshed out and formally signed off
at an EU-Turkey summit on November
29. Mr Juncker said the discussions with
Mr Timmermans showed the will on
“both sides to get closer together”. The
talks helped to steady the situation but
diplomats worry that difficulties with
Mr Erdogan may jeopardise the sign-off.
‘[Turkey] are trying to
exploit this situation in a
way that some countries
find unacceptable’
“We don’t want a summit for the sake of
a summit,” said one Turkish official.
“We have to see they are serious.”
A senior European diplomat said the
“tough exchange of views” underlined
how difficult it was to negotiate with
Turkey — particularly at a time when
some member states are desperate for
assistance with the crisis and have little
leverage. “They are trying to exploit this
situation in a way that some countries
find unacceptable,” he said
There are an estimated 2.5m Syrians
already in Turkey, along with well-es-
tablished and lucrative smuggling
routes. Turkish authorities would have
to launch a massive effort to cut off the
eastern Mediterranean route that many
have followed to Europe.
It would likely require increased
policing, greater co-operation with the
EU and changes to refugee policy to con-
vince refugees they might have better
opportunities for work and assimilation
in Turkey than in Germany or Scandi-
navia. One of the key EU suggestions
includes the issuance of work permits
for Syrian refugees in Turkey, which is
already dealing with a high rate of
unemployment and is in the middle of
increasing the minimum wage.
The Turkish Coast Guard and local
officials bordering the Aegean Sea —
from where as many as 5,000 people
make the daily perilous crossing to
Greek islands like Lesbos — are already
overwhelmed by the task of saving lives,
dismantling organised gangs that facili-
tate the smuggling and housing those
who are detained while trying to cross.
Metin Corbatir, of the Research
Center on Asylum and Migration in An-
kara, said: “As you take more preven-
tive measures, people put themselves at
greater risk. Even if you buy 10 or more
coastguard ships, the demand is so huge
and for them it’s a life or death issue.”
FT Big Read page 9
Philip Stephens page 11

Intelligence agencies
Ability to track Isis comes in for big rethink
ANNE-SYLVAINE CHASSANY — PARIS
SAM JONES — LONDON
Western intelligence agencies were
forced to rethink their operations and
reassess their ability to track Isis yes-
terday as French officials confirmed
the organiser of Friday’s Paris attacks
had been operating under their noses.
Abdelhamid Abaaoud, the 27-year-old
Belgian jihadi said to have plotted the
attacks in the French capital last week —
and previously thought to be operating
from Isis territories in Syria — died dur-
ing a seven-hour siege in Saint-Denis on
Wednesday, authorities said.
“If Abaaoud has been able to travel
from Syria to France . . . there are fail-
ings in the whole European system,”
said Laurent Fabius, foreign minister.
A senior European intelligence offi-
cial said the attacks had raised a host
of serious questions for him and his
colleagues at other agencies.
Among the issues they say are respon-
sible for the lack of intelligence on the
complex attack, in which eight jihadis
killed 129 people across Paris, is the use
of encrypted communications and
“extremely diligent” operational secu-
rity measures between Abaaoud and
others in the terror cell responsible.
“Finding Abaaoud in France and not
in Syria means that all our European
system of alerts have failed completely,”
Jean-Charles Brisard, a consultant on
terrorism says. “It’s a huge collective
failure.”
Mr Abaaoud was connected with four
of six attempted Isis attacks in France
since the spring that had occurred
before Friday’s massacres in Paris, Ber-
nard Cazeneuve, interior minister, said.
The plots, he added, had identical modus
operandi: “Overseas planning of violent
actions perpetrated by jihadis from
European countries who have been
trained to handle weapons to carry out
attacks.”
French spymasters were unaware
that Abaaoud had returned to Europe
until a foreign intelligence service
tipped them off that the jihadi had
recently been spotted in Greece.
Further information was gleaned on
Monday that he could be on French soil,
Abaaoud Speedy evolution
from thief to leading jihadi
SAM JONES — LONDON
The transformation of Abdelhamid
Abaaoud — the Isis figure at the centre of
the Paris attacks — from suburban thief
to mass murderer in just two years epit-
omises the new face of jihadi terror.
Abaaoud, who was killed by French
police on Wednesday afternoon, has
been a marked man for months. But
after the massacre in the French capital
on Friday, perpetrated by Isis gunmen
and bombers under his guidance, track-
ing down the 27-year-old became the
top priority of every counterterrorism
agency in Europe.
On Monday it emerged that Abaaoud
was already working with another cell in
Paris to launch an imminent attack on
Charles de Gaulle airport.
In the small hours of Wednesday
morning, more than 110 police stormed
the building occupied by the jihadi,
prompting a seven-hour stand off where
5,000 rounds were fired before Abaaoud
was eventually killed. It took 24 hours
for forensic specialists to formally iden-
tify his remains.
Abaaoud was more puppet master
than master mind — a distinction that
has worrying implications for counter
terrorism work. His rapid radicalisa-
tion, his youth, his digital savvy, his con-
nections and his viciousness represents
everything that intelligence agencies
worry about when it comes to Isis’s
reach and powers.
Louis Caprioli, a former French intel-
ligence counter-terrorism chief and
expert on Islamist networks, points out
that until just last year Abaaoud
appeared to be a minor figure.
But his links to at least three other
attacks — including the attempt to gun
down passengers on a Thalys train in
August and the aborted raids on two
churches in the French town of Villejuif
in April — show that his influence had
dramatically, and rapidly grown.
“It seems that Abaaoud has had con-
tacts with each of those who tried the
attacks,” Mr Caprioli said. “Is he simply
a go-between? We don’t know.”
According to two European intelli-
gence officials with knowledge of intelli-
gence on the jihadi, he had become one
of a number of crucial, charismatic
“linkmen” between Isis’ operations in
Syria and its pool of would-be recruits
People work allowing authorities to track him down lande expanded French air strikes and returnee fighters in Europe.
inside the to an apartment in Saint-Denis, a sub- against Isis into the country. But he was far more than a messenger
damaged urb of the capital. The US Department of Homeland and is referred to by security officials in
building where The police operation in Saint-Denis Security warned six months ago that Isis the same breath as Mohammed
Abdelhamid resulted in the deaths of at least two had developed sophisticated opera- Emwazi, Reyaad Khan and Junaid Hus-
Abaaoud, above people — one a female suicide bomber, tional capabilities that made it likely it sain — who also had a kind of celebrity
left, suspected while the other was believed to would perform a large-scale attack on status in the Isis command structure
mastermind of have been hit by grenade fragments European targets with “small arms” and that they had respect and could foster
the deadly making his mangled body difficult to “improvised explosive devices”. bonds with other like-minded fighters
attacks in Paris, identify. The assessment, prepared in May, from similar backgrounds, both directly
died along with Abaaoud had been a big target for went so far as to identify Abaaoud as a and via social media.
his female French jets in Syria for several weeks. likely ringleader of a future operation. For Abaaoud, who was already a
cousin His plotting against France was one of Additional reporting by Simon Kuper in leader among his Belgian compatriots,
Christophe Ena/AP Photo
the reasons President François Hol- Paris the turning point came with a grand-
standing interview he gave in Dabiq,
Isis’s glossy propaganda sheet, in Febru-
ary.
It positioned him as one of a number
of charismatic young men Isis’s central
leadership in Raqqa had at its disposal
with which it could connect to networks
in Europe.
As a result he was designated a high
priority target by the anti-Isis coalition.
His plotting, said one senior French offi-
cial, was one of the reasons why Presi-
dent François Hollande began air
strikes in Syria last month.
Abaaoud’s swift transformation to
jihadi figurehead illustrates how Isis has
completely changed the way intelli-
gence agencies need to address the
Islamist terror threat, according to one
senior British security official.
“The flash-to-bang is now so much
quicker,” he said, referring to the period
between a threat emerging and then
crystallising into a concrete attack.
It took al-Qaeda more than a decade
to build upon the foreign fighter net-
works that grew out of the last big jihadi
conflict in Afghanistan in the 1980s, the
‘He’s offering people
a new life — a life that
can either be in the
caliphate or in paradise’
official noted. “Isis is doing it in
months,” he said.
Experts say figures like Abaaoud are
the counterpoint to al-Qaeda’s Khaled
Sheikh Mohammed — an operational
veteran and strategic mastermind — in
the new order of global jihad.
“Khaled Sheikh Mohammed was a
very skilful plotter. A manipulator with
huge ambition, ability and determina-
tion,” said Richard Barrett, former head
of counter terrorism operations at MI6
and now consultant at the Soufan
Group.
“Whereas Abaaoud is something
quite different. He’s motivated, and is
able to motivate people like him, by Isis’
vision. Radicalisation isn’t quite the
word for it. He’s offering people a new
life — a track somewhere — a life that
can either be in the caliphate, or in
Paradise.”
The allure of that vision is a powerful
one, as the figures show. At least 1,500
French and more than 500 Belgian citi-
zens have gone to fight for Isis.
And it means the availability of other
attractive figureheads for Isis to call
upon in its renewed efforts to perpetrate
terror against its enemies is only going
to grow.
“This is the future,” said Mr Barrett.
“There are many other Abdelhamid
Abaaouds.”
Additional reporting by Michael
Stothard in Paris and Tom Burgis in
Brussels

European parliament

French minister tells EU to ‘get a grip’ on security threats facing the Schengen area
ALEX BARKER AND DUNCAN ROBINSON
BRUSSELS
France is demanding that Brussels and
the European parliament “get a grip”
on the security threats facing the bloc
by allowing tighter border checks and
removing barriers to sharing airline
passenger data.
EU home affairs ministers meeting in
Brussels today are preparing to reprise a
series of demands — first made after
January’s Charlie Hebdo attacks in Paris
— to close alleged loopholes and gaps in
the passport-free Schengen zone’s secu-
rity arrangements.
This includes calling on the European
Commission to propose rule changes to
allow EU citizens entering the Schengen
area to be systematically registered, a
measure that is not currently allowed.
Bernard Cazeneuve, French interior
minister, hit out at the EU’s lack of
action, saying the bloc must “shape up”
and regroup in the face of an organised
terror threat following last Friday’s
deadly terrorist attacks in Paris in which
129 people died.
Most politically sensitive is the push
to conclude the fraught eight-year
debate over whether so-called passen-
ger name record (PNR) data stored dur-
ing flight bookings within the EU can be
shared with law enforcement agencies.
It is a touchstone issue for liberal MEPs,
who fear the system could be misused to
discriminate against minorities.
EU officials involved in the negotia-
tions said that talks with the parliament
had borne fruit in recent days, with one
official saying they “made us quite con-
fident we will reach agreement by the
end of the year”.
In the wake of the Paris attacks, the
issue has become highly politicised in
Brussels, with German Christian Demo-
crat Monika Hohlmeier, leader of the
parliament’s home affairs committee,
accusing left-leaning parties of “inviting
terrorists to use loopholes in our safety
and security legislation in order to per-
petrate other terror attacks”.
“For them there is no lesson to be
drawn from the Paris attacks,” Ms Hohl-
meier said of the parliament’s main-
stream centre-left and liberal groups.
“The movements of terrorists have to be
monitored.”
The calls to tighten Schengen security
rules come against the backdrop of a
more far-reaching debate between
member states, as they respond to acute
pressures from the migration crisis.
In a sign of the drastic measures under
consideration, the Netherlands has
informally raised the idea of shrinking
Inside In-depth
Isis
Inc.
How jihadis force
their enemies to
buy their oil
ft.com/isisinc
the zone to a “mini-Schengen”, which
would reintroduce border checks
around a core of western EU member
states.
Thomas de Maiziere, Germany’s inte-
rior minister, yesterday dismissed the
Dutch idea. “Our political goal must be
that the Schengen area as a whole func-
tions,” he said. “Everything else would
just be considerations.”
The commission has been loath to dis-
cuss serious amendments to the code
governing the Schengen zone. Dimitris
Avramopoulos, EU home affairs com-
missioner, said on Wednesday that
Schengen is “not the problem” if its tools
for security were put to full use.
The reforms of border rules backed
by EU ministers are a relatively surgical
change, but reopening the code would
raise the risk of it spiralling into a more
fundamental overhaul.
At present member states have co-or-
dinated an approach to “unsystematic”
checks on EU citizens entering the
Schengen area. However, blanket regis-
tration of the kind security officials are
calling for would need amendments to
the travel-zone’s code. Draft conclu-
sions for today’s Brussels home affairs
ministers meeting also call for more rig-
orous use of law enforcement databases,
better intelligence sharing, and call for
the creation of specific mechanisms to
track the movements of foreign fighters
returning from Syria.
Friday 20 November 2015 ★ FINANCIAL TIMES 7

PARIS TERROR

Good-natured bus driver GLOBAL INSIGHT

MOSCOW

Kathrin
who chose the road to jihad Hille

Amimour’s story raises troubling idea that nice guys with decent jobs can be terrorists too Delay a key tactic for
Putin in managing
TOM BURGIS — PARIS

Samy Amimour could hardly have

grief over jet bomb
advertised his intentions more clearly if
he had written them on the side of the

bus he used to drive through the drab
Paris suburb of Drancy.
First, the friendly if reticent young
man departed from his French-Algerian
parents’ secular ways and embraced a
strict version of Islam.
Then, according to French prosecu-
tors, he hatched a plan to travel to
Yemen. It was foiled by the authorities,
who imposed a control order, requiring
him to report to the police each week,
only for Mr Amimour to slink off to Syria
and join the Islamist militants Isis two
years ago.
Last Friday, the 28-year-old and two
fellow jihadis strode into the Bataclan
concert hall in the French capital carry-
ing assault rifles. They slaughtered rock
fans until they were felled by a combina-
tion of police bullets and their own sui-
cide vests.
The Paris attacks, like others before
them, have prompted hand-wringing
about “intelligence failures”. Amimour’s
ability to leave and return to France
unhindered, despite an international
arrest warrant issued when he
absconded to Syria, seems a particularly
egregious lapse. At first glance, he fits
the standard profile of homegrown
French jihadis, raised in crime-ridden
ghettos and consumed by hatred.
But details of his story, and of the limits
of what intelligence agencies can do, sug-
gest a more troubling possibility: that it is
simply impossible to head off every plot,
that others will certainly succeed and
that nice guys with loving parents and
decentjobscanbeterroriststoo.
Outside the squat brick apartment
block where Amimour and his two sis-
ters grew up in Drancy, northern Paris,
there were both fond memories of a
good-natured neighbour and baffle-
ment at what he had become.
Salim, 24, was three years below Ami-
mour at the local school. Amimour’s
parents, he said, were not practising
Muslims. French media reports describe
them as thoughtful and worldly. A short
walk from the family apartment, past
Drancy’s quaint town hall, the Berber
cultural centre where Amimour’s femi-
nist mother helped out is the antithesis
of jihadism. On one wall hangs a paint-
ing of a female form alongside photo-
graphs of Algerian landscapes. An
employee cheerfully explained that the
organisation embraces the liberal values
of the French republic.
Amimour was no zealot growing up.
He dressed like everyone else, played
football, hung out. He gained a bacca-
laureate and a permanent contract as a
bus driver — a markedly better liveli-
hood than the sons of immigrants in
tougher banlieues can expect.
Unlike other French jihadis, such as
the trio that perpetrated January’s
attacks on Charlie Hebdo magazine and
a Jewish supermarket in Paris, or Ismael
Omar Mostefai, his partner in the Batac-
lan onslaught, Amimour was not drawn
into petty crime. “He was intelligent,”
says Salim, who asked for his surname
not to be printed for fear of Islamist
reprisals. Nonetheless, he added, Ami-
mour was easily influenced.
Around 2012, Salim and others
started to notice a change in Amimour.
Unlike other French
jihadis, Amimour was not
drawn into petty crime.
‘He was intelligent,’ says
Salim, who asked for his
surname not to be printed
He took to wearing the djellaba, a tradi-
tional robe, and tried to insist that his
mother veil herself. He grew more
devout, praying assiduously. His father,
speaking to Le Monde last year about his
son’s departure for jihad, recalled his
horror when he first heard Samy voice
admiration for Osama bin Laden.
On Monday, Jean-Christophe Lagarde,
the mayor of Drancy and a friend of
Amimour’s mother, blamed a mosque in
the neighbouring commune of Le Blanc-
Mesnil for radicalising the young man.
At prayers on Wednesday afternoon,
worshippers at that mosque were out-
raged at the suggestion.
“There’s nothing like that here,” said
Ahmed Iftikar, 40, from Pakistan. “That
is not Islam.” Worshippers said Ami-
mour was an infrequent visitor. They
have issued a statement demanding Mr
Lagarde produce proof if he has any. The
local Muslim association says that, far
from recruiting for Isis, it has sought to
spread word of the dangers of sectarian-
ism. Salim does not believe his school-
mate was radicalised there. “It must
have been on the internet,” he says.
Salim remembers the day in October
2012 when armed police smashed down
the door of the Amimour home. French
intelligence believed Samy was bound
for Yemen to seek jihad. His parents told
the AFP news agency subsequently that
it was the “traumatic” experience of
being handcuffed and led away in front
of his family that sealed his determina-
tion to fight alongside Isis.
After his arrest, Amimour was
Bafflement: deemed a terrorist conspirator. Yet the
local residents only check the authorities kept on him
was an obligation to report to a police
walk past the
apartment block station each week. That might seem lax
in Drancy, for a country that has known Islamist
violence for decades. But Louis Caprioli,
northern Paris,
where Sami a former French intelligence counter-
Amimour, below terrorism chief, points to the practical
difficulties of mass surveillance.
left, grew up
Linda Davidson/The “Materially, physically, you cannot
Washington Post via Getty
Images keep a watch on 20,000 people round
the clock,” he says, referring to the rough
tally of everyone the French authorities
consider to have links to jihadi cells, to
hold radical Islamist views or to pose a
threat to national security. Monitoring
one of them for 24 hours requires at
least 18-20 agents, who have to be
rotated to avoid being recognised. To
maintain surveillance over all of them,
France would need to deploy 400,000
operatives — more than three times the
total number of police officers, gen-
darmes and soldiers mobilised nation-
wide in the wake of the attacks. Cher-
ished civil liberties create further con-
straints. For instance, police would have
been prohibited from tapping Ami-
mour’s phone.
“You can protect the Eiffel Tower but
not every restaurant in France,” says
Farhad Khosrokhavar, a sociologist who
has spent two decades analysing Islam
in France and recently interviewed
French fighters returned from Syria. He
foresees deepening strife. “There will be
more violence towards these guys
[young French Muslims] and that will
increase radicalisation.”
W
hen buildings around the world lit up in
the tricolour following last Friday’s Paris
terror attack, it could just as well have
been a tribute to Russia. The country,
which also boasts a blue, white and red
flag, lost 219 of its citizens when a bomb brought down a
Russian passenger jet three weeks ago. Just like France,
which is in shock over the attacks that killed 129 in Paris,
Russia is also a victim of Islamist terrorism.
But in a departure from the scenes unfolding in France,
the Russian people have largely refrained from asking
larger questions about their own tragedy or pressing their
government for answers. This is not just a matter of Rus-
sians’ famous stoicism, say political analysts. It is also the
result of a coolly executed communication strategy
designed to prevent the country’s deadliest air crash from
becoming a political liability for President Vladimir Putin
and his military campaign in Syria.
Delay has been a key Kremlin tactic. Even as western
governments began to express concerns that the October
30 crash was the result of an Isis-planted bomb, the Krem-
lin managed to smother talk of terrorism for more than
two weeks. There was an immediate outpouring of sorrow
in St Petersburg, the doomed aircraft’s destination, with
vigils in the city’s central square and hundreds laying flow-
ers at the airport. Sympathy also welled up on social
media. But it remained apolitical.
“[The] acknowledgment of a terrorist act at the time
when it happened could have and without doubt would
have been perceived as a punishment for the invasion in
Syria,” Gleb Pavlovsky, a
former Kremlin adviser,
said in a radio interview.
Vigils were held
“[That] would have come and sympathy
across much more pain-
fully. And the Kremlin
welled up on social
always tries to soften this media. But it
first strong, painful reac-
tion. The more time
remained apolitical
passes, the more it mixes
with other issues.”
It was only on Monday when Mr Putin changed tack. In a
video released by the Kremlin, Russia’s intelligence chief
was shown reporting to the president that a bomb had
brought down the plane. Mr Putin then declared that he
would step up the military operation in Syria.
The announcement came on the heels of a G20 summit
in which French president François Hollande had declared
his country was now at war with Isis, and the fight against
the groups was increasingly becoming an international
priority. “Putin turned around and acknowledged: yes, the
plane was, after all, blown up by terrorists,” writes Sasha
Sotnik, one of Russia’s most prominent bloggers. “Now —
after the Paris events — that is possible. Because this has
befallen not just Russia . . . and we together with our col-
leagues will fight terror.”
Not all Russians accept this narrative. Some Putin critics
began trading conspiracy theories almost immediately
after the crash. But following years of censorship and prop-
aganda emphasising patriotism, security and strong lead-
ership, such voices are rare. Meanwhile, having dissolved
the pain over the crash in the perception that Russia is now
fighting shoulder to shoulder with its foreign partners
against the evil of terrorism, Mr Putin is charging ahead.
Moscow initially estimated the Syria operation to take a
few months, but now pledges to intensify it. Today parlia-
ment is expected to debate the possibility of a ground oper-
ation, an option so far categorically excluded by the Krem-
lin. “We will pursue [the terrorists] everywhere, wherever
they may hide. We will find them in any spot on the planet
and we will punish them,” Mr Putin said this week.
For Russians, this language is eerily reminiscent of that
with which the president signalled the start of the second
Chechen war in 1999. Having come full circle and once
again put war at the centre of his political agenda, Mr Putin
may sooner or later have to explain what lies ahead. In the
second Chechen war, he promised a quick and decisive vic-
tory. Russia found itself bogged down for a decade.
kathrin.hille@ft.com

Serbia and Macedonia Democratic candidate

Southern Balkan border officials clamp down on migrants
ANDREW BYRNE — BUDAPEST
ALEX BARKER — BRUSSELS
KERIN HOPE — ATHENS
Southern Balkan authorities have
refused passage to thousands of
migrants who are not fleeing wars in a
security clampdown following the
Paris attacks.
Serbian and Macedonian officials on
Europe’s southern flank have begun to
deny entry to certain nationalities at the
main crossing points on the Balkan
migrant trail to western Europe.
The screening began at 6pm on
Wednesday, with officials allowing only
Syrian, Afghan and Iraqi refugees to
cross border points in Idomeni on
the Greek-Macedonian border and fur-
ther north at the Serbian-Macedonian
border.
The measures were imposed after
governments in the region launched an
investigation into whether one of the
suspects in the Paris attacks posed as a
refugee and travelled into Europe via
this route in early October.
Greek authorities said the suspect’s
fingerprints were taken on the island of
Leros but his identity had yet to be con-
firmed.
It is unclear whether the new meas-
ures were more widely agreed and co-
ordinated. One European diplomat said
the restrictions were leaving “hundreds
stranded overnight”, warning the situa-
tion could deteriorate. A European
Commission official declined to com-
ment on the moves.
Aid workers said about 200 people
were being held overnight along Mace-
donia’s northern frontier in container-
type accommodation provided by the
UN High Commissioner for Refugees.
By mid-morning yesterday, about 1,500
people, mostly Iranians and Moroccans,
had been prevented from travelling
north from Greece into Macedonia.
They were waiting at the frontier while
large emergency tents known as “rubb
halls” were being erected nearby.
Countries along the so-called western
Balkan route are looking to provide
shelter for up to 50,000 people as winter
approaches but many are struggling to
prepare usable accommodation.
Between 3,000 and 5,000 refugees are
crossing daily by boat from Turkey to
six Greek islands. A Greek coastguard
official in Lesbos, which receives about
half the daily inflow, said: “We don’t
expect numbers to fall unless the
weather turns stormy.”
The UNHCR in Athens said about 50
per cent of arrivals are Syrians, 30 per
cent Afghans and about 10 per cent Ira-
qis. The others are mostly from Paki-
Only Syrian,
Afghan and Iraqi
refugees are being
allowed to cross
border points
stan, Iran, Yemen, Somalia and
Morocco.
Authorities have struggled to record,
let alone verify, the identities of the new
arrivals. One Macedonian official said
border security was intensifying in the
wake of the Paris attacks, but cautioned
against raising unwarranted fears that
could harm genuine refugees.
“Managing this is a major operation.
Not all migrants are coming to legally
marked crossing points, some use alter-
native passages. We are strengthening
border control and registration but even
that can’t assure 100 per cent accuracy,”
the official said.
Macedonia has deployed regular
army and special forces units on the
frontier. In August, authorities in Sko-
pje, the capital, declared a “crisis
period” on its southern border and had
previously attempted pushbacks with
troops and tear gas.
Aid agencies said hundreds of
migrants were arriving at the site on an
hourly basis yesterday morning and the
mood was reasonably calm.
Alexandra Krause, senior protection
officer at the UNHCR, said: “Right now,
everyone is waiting to see what the
authorities will decide — whether the
decision to only allow these nationali-
ties through is temporary or perma-
nent.”
Serbian officials said fingerprints and
other biometric data of all migrants
arriving in the country were being
recorded. In Macedonia, aid workers
said authorities had started a process of
mandatory registration although they
do not record biometric information.
Clinton defends US Mideast strategy
COURTNEY WEAVER — NEW YORK
Hillary Clinton yesterday called for
Washington and its allies to expand the
frequency and scale of their air strikes
in Syria, impose a no-fly zone and give
more power to the US’s military advis-
ers in the country.
But she ruled out sending thousands of
US troops into Syria if elected president
and largely stood by the policies of Pres-
ident Barack Obama.
Speaking at New York’s Council on
Foreign Relations, the Democratic
frontrunner used her half-hour speech
to articulate and defend the US’s strat-
egy in the Middle East and the policies
that she helped shape as Mr Obama’s
secretary of state.
She said that a “more effective coali-
tion air campaign” would be “necessary
but not sufficient. We should be honest
about the fact that to be successful, air
strikes will have to be combined with
ground forces actually taking back more
territory from Isis.”
Mrs Clinton called on Congress to
“swiftly pass an updated authorisation
to use military force”, for Sunni and
Kurdish forces to have greater involve-
ment in the US-led coalition against Isis,
and for US technology companies to
share more information with the gov-
ernment so that jihadi websites and chat
rooms could be shut down.
In her presidential campaign, Mrs
Clinton faces a difficult balancing act as
she seeks to distinguish her foreign pol-
icy beliefs from those of Mr Obama
without disowning her record as secre-
tary of state — or alienating Democratic
primary voters, who still support the
president’s policies to a large degree.
In her speech, Mrs Clinton took an
indirect swipe at Mr Obama. She said
the US should not be aiming just to
“deter or contain Isis, but to defeat and
destroy Isis”, an apparent reference to
Mr Obama’s comments a day before last
week’s Paris attacks when he claimed
Isis had been “contained”.
But for the most part she stood by the
president, refusing to critique his
remark that Isis was a “JV” — or “junior
varsity” team. She reserved her most
cutting remarks for Republican rivals
who have argued against accepting Syr-
ian refugees in the wake of the attacks.
8 ★ FINANCIAL TIMES Friday 20 November 2015

INTERNATIONAL

Monetary policy Japan recovery

ECB looked at further stimulus in October BoJ monetary

Weak regional and global
growth almost led central
bank to act last month
CLAIRE JONES — FRANKFURT
Eurozone policymakers mooted ramp-
ing up their monetary stimulus as early
as October, according to a set of Euro-
pean Central Bank accounts that tees up
a crucial re-examination of the bank’s
policy strategy on December 3.
The ECB is expected to unleash an
enhanced version of its €1.1tn quantita-
tive easing package and will consider
cutting one of its benchmark interest
rates deeper into negative territory in its
early December vote.
The accounts for the rate-setting gov-
erning council’s late October meeting in
Malta show weak regional and global
Economic fallout
growth, as well as the resistance of the
US Federal Reserve to raising rates,
almost forced the ECB to act sooner. “It
was argued that in such an environ-
ment, the risk of deflation remained rel-
evant,” the accounts said. “Against this
background, the view was put forward
that a case could be made for consider-
ing reinforcing the ECB’s accommoda-
tive monetary policy stance already at
the current meeting and, in any case, to
act sooner rather than later.”
The council’s 25 members opted to
wait until next month on signs the cur-
rency area’s economy had so far proven
resilient to weaker global growth.
The accounts, published yesterday,
read like a clear case for injecting more
stimulus into the eurozone’s economy.
While the council believes aggressive
monetary easing is thawing the region’s
credit markets and boosting lending,
there are concerns among the member-
ship that inflation is set to take much
longer to return to target than officials
had hoped when they unveiled their
original QE package in January.
Some members are particularly
‘Despite the delay, we
consider the messages
here still wholly relevant’
Timo del Carpio, economist
spooked by signs that weak demand is
pushing down core inflation rates,
which strip out the costs of more volatile
items such as food and energy goods.
Chief among those fears is that cheap
oil threatens derailing inflation longer
term. Dovish members on the council
also cite diminished expectations that
the ECB has what it takes to return infla-
tion to its target of below but close to
2 per cent. At the moment, annual head-
line inflation is 0.1 per cent across the
currency area, a rate similar to that of
other advanced economies. Price pres-
sures in the eurozone have been weaker
for longer than other economies, how-
ever. Core inflation is 1.1 per cent.
Timo del Carpio, economist at RBC
Capital Markets, said the account shows
a council “primed and ready for action”.
“Despite the delay between the meet-
ing and the publication of its account,
we consider the messages here are still
wholly relevant to the contemporane-
ous policy debate,” he added.
To address deflation threats and a
recovery which the accounts describe as
“particularly sluggish”, the ECB could
increase its monthly purchases under
QE from the current level of €60bn or
buy other assets as part of the package.
Purchases now are limited to mostly
government bonds, alongside loans
sliced and repackaged either as asset-
backed securities or covered bonds.
Another option open to the council is to
extend purchases beyond the current
deadline of September 2016.
The council is also willing to abandon
an earlier commitment to keep interest
rates unchanged and raise the rate it
charges on a portion of reserves held at
the eurosystem’s central banks from the
current level of 0.2 per cent.
The accounts said “reference was
made to the experience in other juris-
dictions, where negative rates had not
appeared to result in major difficulties
or widespread substitution of cash”.
Denmark’s and Switzerland’s central
banks have imposed deposit rates of
minus 0.75 per cent.
policy on
hold despite
technical
recession
ROBIN HARDING — TOKYO
The Bank of Japan kept monetary pol-
icy on hold despite the economy enter-
ing a technical recession as it continued
to argue the recovery is on track.
Japan’s central bank said it will keep
buying government bonds at a pace of
Y80tn a year in an effort to drive down
long-term interest rates, even as it noted
weakness in some measures of public
inflation expectations.
The BoJ’s decision highlights a differ-
ence to its stance last year, when it eased
policy to boost inflation expectations.
Now the BoJ is signalling it will keep pol-
icy on hold as long as inflation is on
course eventually to reach 2 per cent.
The yen was stronger after the deci-

Paris tourist spots eerily quiet as terror deters visitors
ADAM THOMSON — PARIS
Carolina Cabrera and Deepe Randhawa
yesterday achieved what couples visit-
ing Paris can usually only dream of:
they were able to walk unimpeded
through the Louvre to the Mona Lisa
and appreciate the world’s most
famous painting without the crowds.
“It’s very quiet,” observed Ms Cabrera,
looking round the half-empty salon.
They booked their trip from North
America almost a month ago, and
thought seriously about cancelling after
last Friday’s deadly terrorist attacks.
“It’s not that we thought it would be
dangerous — it’s more that we thought it
would be sombre,” said Mr Randhawa.
In the past few days, clear signs have
emerged showing that the murderous
attacks have had an economic impact
on the French capital — one of the most
visited cities in the world.
A survey by Synhorcat, the French
hotel and restaurant operators’ union,
suggests that sales in the city’s cafés,
bars and brasseries during the past
week are 44 per cent down on the same
period last year, while hotels have suf-
fered a 57 per cent drop in business.
Didier Chenet, the union’s president,
is working on ways to absorb some of
the shock. But he admitted: “There is no
question that there is a strong economic
impact for the whole sector.”
A slew of rock performers, including
U2, Prince, the Deftones and the Foo
Fighters, have cancelled concerts in
Paris — in some cases, whole European
tours — as a result of the bloodshed.
“In light of this senseless violence, the
closing of borders, and international
mourning, we can’t continue right now,”
read a post on the Foo Fighters’ Face-
book page. “There is no other way to say
it. This is crazy and it sucks.” The post
got 155,000 likes.
Yesterday, the normally long queue
outside the Louis Vuitton store on the
Champs Elysées had disappeared, leav-
ing the velvet rope used to control the
crowds redundant.
“It’s dead,” admitted one staff mem-
ber. Since the attacks, the store has
boosted security. Customers are patted
down as well as having bags checked
Air France refused to comment on
passenger numbers and cancellations
on Paris flights. But on Tuesday, the low-
cost airline easyJet said that demand for
Waiting for travel to Paris had fallen. “You will
customers: the always see a cooling-off period, but you
Christmas also see quite a quick resumption to
market on the travelling again,” Carolyn McCall,
Champs Elysées, easyJet’s chief executive, told reporters.
which has The airline, which offered people who
reopened after booked travel to Paris the possibility of
being closed by postponing or changing their tickets,
police following noted there had been an increase in the
Friday’s attacks number of passengers who had booked
Dominique Charriau/Getty
to go to France but had not shown up
over the weekend.
Wider questions remain about what a
Paris slowdown could mean for the
overall French economy at a time of
fragile growth.
Anna Zabrodzka, an economist at
Moody’s Analytics, said France’s tour-
ism sector, which accounts for 7 per cent
of gross domestic product, was unlikely
to suffer a sustained decline. However,
she said the longer-term fallout was
“anyone’s guess right now”.
Philippe Waechter, chief economist at
Natixis Asset Management, said previ-
ous terrorist attacks on big cities such as
New York, London and Madrid — as well
as Paris after the January killings — had
offered little evidence of a significant
economic knock-on effect.
“Past episodes of attacks have not
plunged the local economy into a sharp
slowdown,” he concluded.
For now, though, the cautious opti-
mism is little consolation for those
whose livelihoods depend on servicing
the city’s 22m annual visitors.
Johan Giethlen has been working at
the Louvre’s audio tour counter for two
years — and has never seen the museum
so quiet.
“It’s really empty,” he said. “It’s quite
strange — eerie.”
Outside, the streets were wet with
drizzle, but Kamal, an umbrella seller
from India, was abnormally downbeat.
57% “I normally sell 10 or 15 of these a
Drop in business day,” he said, pointing to a bag full of
suffered by Paris merchandise.
hotels compared “I haven’t sold one today.”
with same period On the Rue des Rosiers, which forms
last year, according
to operators’ union the backbone of the city’s Jewish quarter
in the Marais district, things were at a
near standstill during lunchtime. A
30% gruff ticket seller at L’As du Fallafel,
Fall-off in trade where long queues normally form out-
since last week at
L’As du Fallafel side, said business was down at least 30
eatery in the per cent since last week.
Marais district David Albouker, manager at the
nearby Miznon restaurant, said that
sales had halved since the attacks.
Moreover, he had personally avoided
taking the Metro and had drastically cut
down the number of times he went out
for drinks with friends.
“The January attacks were against a
specific target,” he said. “This time, it’s
everyone.”
Philip Stephens page 11
sion at Y123.2 to the dollar while the
Topix share index gave up some of its
gains, trading up 0.7 per cent at 1,598.
The BoJ decision came as Japan
recorded an unexpected Y111bn trade
surplus for October. Showing the boost
to the economy from falling oil prices,
the value of imports was down by 13.4
per cent on a year ago.
But exports also fell 2.1 per cent by
value, despite the heavy depreciation of
the yen, showing the impact of China’s
slowdown on Japanese industry.
Exports to China fell for the third con-
secutive month and were down by 3.6
per cent on a year ago.
“Japan’s economy has continued to
recover moderately, although exports
and production have been affected by
the slowdown in emerging economies,”
said the BoJ’s policy board in its latest
statement. “Inflation expectations
appear to be rising on the whole from a
somewhat longer-term perspective.”
Headline inflation is running close to
zero because of weak oil prices. Exclud-
ing food and energy, prices are up by
0.9 per cent on a year ago.
Haruhiko Kuroda, BoJ governor, has
placed great weight on increasing public
expectations of inflation in order to
break the deflationary mindset brought
about by 20 years of on-and-off falls in
prices.
In contrast to October 2014, when the
BoJ surprised markets by pre-emptively
easing monetary policy, officials believe
a “virtuous circle” from higher incomes
and profits to higher spending and
investment is still at work. They are also
encouraged by signs of changed corpo-
rate behaviour, with a great willingness
to raise prices.
“The fundamentals of Japan’s econ-
omy are sound and the environment
surrounding firms and households has
significantly improved compared to
some years ago,” said Mr Kuroda
recently.
Officials think corporate decisions to
increase prices — and the acceptance of
those rises by shoppers — is a better
guide to the public’s real opinions about
future prices.
The BoJ is now closely focused on next
spring’s round of wage negotiations.
“When it comes to the impact on prices,
the focal point is the developments in
wage increases towards next fiscal year,”
said Mr Kuroda. The most likely trigger
for further BoJ action would be signs of a
weak pay round.
“In the long term, prices won’t rise if
wages don’t rise,” said Mr Kuroda at his
press conference yesterday.

Independence concerns

Indian central bank staff strike over pensions and rates reform
AMY KAZMIN — NEW DELHI
India’s central bank ground to a halt
yesterday as 17,000 staff went on strike
to protest against a proposed overhaul
of the country’s monetary policy
framework that would curb the bank’s
independence, and to demand
improved pensions.
The United Forum of Reserve Bank
Officers and Employees, an umbrella
group of four unions representing
Reserve Bank of India staff, said its
members had taken a day’s mass “cas-
ual leave” to protest against what it
called New Delhi’s plans to “cripple the
RBI”.
But the one-day strike was also aimed
at raising the stakes in a long-running
battle over the RBI’s pension scheme,
with disgruntled retirees complaining
that their benefits have been severely
eroded by years of high inflation.
The unions warned they would step
up their agitation — with longer strikes
in the weeks ahead — if New Delhi did
not accept the RBI staff’s “very reasona-
ble demand” of improved pension
payment.
The basic pension does not rise with
inflation “which puts thousands of RBI
pensioners in extreme penury in these
days of soaring prices, increased medi-
cal costs, etc”, the central bank unions
said in a joint statement.
They added that peaceful efforts had
failed to bear fruit after eight years. Now
“RBI staff and retirees have reached
[their] limit of patience and are com-
pelled to mobilise to fight”.
The strike by the RBI employees is
the latest setback for Prime Minister
Narendra Modi’s administration, which
is also under pressure from veterans
Striking RBI workers demonstrate in Ahmedabad yesterday — Amit Dave/Reuters
to overhaul military pension schemes.
Veterans have been protesting for
months in New Delhi to demand a “one-
rank, one-pension scheme”, which
would ensure that all retirees of the
same rank and length of service
received the same pension, regardless of
when they retired. The government
promised to make such changes in
August, but has subsequently angered
veterans by trying to impose various
caveats.
The strike by central bank staff
also throws a spotlight on concerns over
erosion of the RBI’s independence.
Until now, setting interest rates has
been the exclusive purview of the RBI
governor. But India’s draft financial
code, released earlier this year,
proposed establishing a new seven-
member Monetary Policy Committee
— dominated by government nominees
— to set rates, raising the spectre that
the RBI’s independence to set monetary
policy would be curbed, with interest
rate decisions determined by govern-
ment policy.
Raghuram Rajan, the central bank
governor, has supported the creation of
a Monetary Policy Committee to set
rates but talks continue about the com-
mittee’s precise composition and how it
would function.
In their statement, however, the RBI
unions said successive administrations
in New Delhi had “long been trying to
coerce the RBI to surrender to their
pressure tactics” of pushing for lower
interest rates for short-term gains.
Having failed, the union statement
said, “the government is keen to virtu-
ally take over the function”.
Additional reporting by David Keohane
in Mumbai
Friday 20 November 2015
A thriving black market in firearms has made Belgium a launch pad for jihadis, who exploit the country’s
fractured security services. Now officials are scrambling to crack down on the illicit trade.
W
hen Ayoub el-Khazzani
stepped out of the toilet
on the high-speed Tha-
lys train from Amster-
dam to Paris on August
21, he was brandishing a Kalashnikov
rifle and a 9mm pistol. A bloodbath was
only averted after several passengers,
including off-duty US servicemen, wres-
tled him to the ground and clubbed him
unconscious with the muzzle of his
assault rifle.
It came as little surprise that Mr Khaz-
zani had boarded the train in Brussels.
Belgium has become Europe’s prime
launch pad for attacks by jihadis and,
according to many security experts,
their favourite place to pick up guns
smuggled from the Balkans.
Mr Khazzani’s lawyer made it sound
easy to acquire an AK-47 in the Belgian
capital. She said her client found his
Kalashnikov by accident in a suitcase
while sleeping rough in a park close to
Gare du Midi, known to commuters
mainly as the Eurostar terminal. She
added that Mr Khazzani only wanted to
hold up the passengers, not murder
them.
While security experts dismiss the
suitcase story, few doubt Mr Khazzani
acquired his weapons in Brussels.
Friday’s attacks in Paris, which killed
129 people, have turned the spotlight
back on to the Belgian capital — and its
deprived Molenbeek neighbourhood —
as a centre for returning jihadi fighters
looking to deploy the lethal skills they
learnt in Iraq and Syria. In per capita
terms, Belgium has seen more of its
nationals go to the war zone than any
other European country.
After the attacks, president François
Hollande delivered an unusually scath-
ing assessment of Belgium’s role. “These
acts of war have been decided and
planned in Syria, they have been organ-
ised in Belgium and perpetrated on our
soil with French accomplices.”
Other European countries have radi-
cal mosques, active terror cells and dis-
affected, unemployed young men who
are easily recruited by jihadi groups
such as Isis. What Belgium adds to the
mix, analysts say, is a long, troubled his-
tory of lax gun laws and a pedigree of
gun manufacturing, led by FN Herstal
in the Wallonia region. The country has
an unusually high number of people
with technical and commercial exper-
tise in guns.
Nils Duquet, an arms expert at the
Flemish Peace Institute, notes that until
2006, purchasers could buy guns simply
by showing an ID card. The government
only tightened its rules after 18-year-old
skinhead Hans Van Themsche went on a
Crime
Firearms deaths high by
European standards
Shortly before Christmas in 2011,
Nordine Amrani opened fire at
shoppers in the Belgian city of Liège,
killing five people and injuring 125 with
an FN FAL assault rifle and grenades.
At the end of his bloody assault, he
shot himself. The attack had no links
to jihadism, and the authorities
concluded that Amrani was mentally
ill and obsessed with guns.
Although jihadis have cast the
spotlight on Belgium’s gun culture,
Claude Moniquet, a security analyst
and former French spy, stresses that
95 per cent of the weapons are
destined for criminals with no relation
to terrorism.
Gun crimes are hardly a
rarity on the news in
Belgium. In the days after
the terrorist attacks in Paris, a
young man was shot dead in
★ FINANCIAL TIMES
FT BIG READ. PARIS ATTACKS
By Christian Oliver and Duncan Robinson
Belgium’s arms bazaar
racially motivated shooting rampage in
‘We have Antwerp that year, killing two people
seen a trend and injuring one.
By that stage, however, a large pool of
towards guns had built up in Belgium. “We had
micro got a reputation,” says Mr Duquet. “Peo-
ple knew Belgium was a place to go to
trafficking. buy guns.”
You can Jihadis have made the most of the
probably combustible mix. François Molins,
the Paris prosecutor, says the cars
buy an used in last week’s attacks drove
AK-47 “almost in convoy” from Belgium,
where they were hired. At least one of
for around the cars carried Kalashnikov-type
€300 weapons, part of what he describes as
a “veritable arsenal”.
[in the
Balkans]’ Terror for sale
Belgian officials have not said whether
they have evidence that the guns were
acquired in Brussels but, if so, it would
fit a troubling pattern. In addition to Mr
Khazzani’s failed train attack, most of
Europe’s recent high-profile terrorist
attacks have connections to the Belgian
arms market.
Heavily armed In January, Metin Karasular, a resi-
special forces dent of the southern city of Charleroi
soldiers outside who is under investigation for arms traf-
a house in ficking, turned himself in to police after
Molembeek — Dirk seeing pictures of two of the suspects in
Waem/AFP/Getty Images
the January plot in Paris that killed 17,
including 11 at the offices of satirical
magazine Charlie Hebdo.
Mr Karasular has denied selling
weapons to Amedy Coulibaly — the mili-
tant who stormed a kosher supermarket
in the hours after the Charlie Hebdo
assault — and insisted he merely helped
someone buy a car that had belonged to
Coulibaly’s girlfriend. Mr Karasular’s
lawyer says his client voluntarily
approached the police to avoid any mis-
understanding as soon as he saw Couli-
baly and his girlfriend identified on tele-
vision. The girlfriend, Hayat Boumeddi-
ene, is believed to have fled to Syria.
In addition, security officials told the
Financial Times that Mr Khazzani
belonged to the same cell as Mehdi
Nemmouche, a French-Algerian who
killed four people with a Kalashnikov
in an attack on the Jewish Museum
a small town in Wallonia. Police also
had to change a bus route in an
affluent suburb of Brussels after
suspecting that the windows of
one bus had been shattered by a
stray bullet.
According to the UN’s latest data on
homicides by firearms in Belgium, from
2004, the country had a relatively high
death rate by European standards.
The rate of homicides caused by
firearms was 0.7 per 100,000 deaths.
That meant that Belgium’s rate was
similar to those of Italy and Bulgaria —
countries notorious for organised
crime. Britain’s rate hovers around 0.1.
Still, by international standards,
Belgium remains safe. The US rate is
around 3 or 4. In Honduras, it is an
astonishing 64.
Separate sources also suggest that
Belgium has become safer. Data
collated by Gunpolicy.org, a research
site hosted by the University of
Sydney, said 36 people were shot
dead in 2010, down from 95 in 1993
and 70 in 1999. This pulled
the gun
homicide rate
down to 0.33
in 2010.
of Belgium in Brussels in May last year.
The officials added that this cell was
also behind a gun battle in the provincial
Belgian town of Verviers in January,
where two jihadis were shot dead and
one was injured. Those fighters —
reportedly accomplices of Paris suspect
Abdelhamid Abaaoud — had accumu-
lated a formidable stockpile of Kalash-
nikovs, handguns and bomb-making
equipment, and were planning attacks
against Belgium’s police, according to
prosecutors in Brussels. Abaaoud was
killed in a raid on a property in St Denis,
the French government confirmed yes-
terday.
Claude Moniquet, a former French
spy and co-founder of the European
Strategic Intelligence and Security Cen-
tre, said there was mounting evidence
that the Belgian gun trade, once focused
on criminals, has expanded to providing
arms to jihadis.
Mr Moniquet said the black market
for firearms, including gun runners
around Gare du Midi, have seen prices
spike in line with the increased risk of
sales. Just a few years ago, an AK-47 with
300-400 rounds included could be
acquired for about €400. Now, Mr
Moniquet says, prices have risen to
€1,000 to €2,000.
“Trafficking arms to criminals is one
thing; terrorists is another,” he says.
“While arms traffickers can receive sen-
tences of two to three years, if you sell
arms to a terrorist, you can expect 20.”
The Balkans connection
The flow of illegal guns into Belgium
began in earnest in the 1990s amid the
Balkan wars and the fall of the Soviet
Union. Mr Moniquet says a large Balkan
community built up during those years,
when guns circulated freely around the
fragmenting Yugoslavia, and former
communist officials took to trafficking
their states’ vast and often mothballed
munitions reserves.
Mr Moniquet estimates that 90 per
cent of the arms circulating in Belgium
probably originate from the Balkans.
“You have mountains of Kalashnikovs
in Bosnia, Serbia and Croatia,” he says.
When you take in people, you take in
their luggage. Smuggling is a living tra-
dition for these guys.”
Police in the Netherlands have com-
plained that drug gangs have been
increasingly using Kalashnikovs rather
than handguns because of their ready
availability in Belgium.
While security experts argue that
there is a large pool of guns in Belgium
from the Balkans wars, they note that an
“ant trade” continues, with smugglers
bringing small numbers of guns from
southeastern Europe. Shortly before the
Paris attacks, German authorities said
they had stopped a car from Montene-
gro carrying eight AK-47s.
Ivan Zverzhanovski, head of the UN’s
South Eastern and eastern Europe
Clearinghouse for the Control of Small
Arms and Light Weapons, says many
people in the region still like to keep
guns at home. Some Montenegrins quip
that “a house is not a home without a
gun”. The number of unregistered fire-
arms in Serbia is estimated to be much
more than 200,000, and authorities in
the country say it could be as high as
900,000.
Driving north to sell these weapons
can prove lucrative. “We have increas-
ingly seen a trend towards micro traf-
ficking since 2010,” Mr Zverzhanovski
says. “You can probably buy an AK-47
for around €300 [in the Balkans]. It’s
sometimes only small-time criminals,
who can then drive that weapon hidden
in their car to Belgium or Sweden and
sell it for around €4,000.”
Once those guns are in Belgium, Mr
Duquet says one of the country’s main
weaknesses is simply geographical, as
terrorists can evade detection by easily
switching between the jurisdictions of
different security services.
“This is not just Belgium’s problem.
That is an exaggeration. There is a big
arms trade in Paris, Marseille and Ber-
lin, anywhere with high crime rates. But
Belgium is a transit country. It is small
and difficult for police to intervene. You
can drive in from France — drive in and
out in an hour. It is hard for police to
stop a deal.”
In terms of the arms caches held by
jihadis, Belgian authorities find it diffi-
cult to penetrate poor neighbourhoods
such as Molenbeek, home to a large
community of north African origin.
Security officials say it is common for
militant cells to use safe houses, where
weapons are permanently ready for
returning foreign fighters. Such pickups
are quick and hard to intercept.
Co-ordinating the response
Belgium’s status as a smuggling hub
grabbed headlines in July, when the
police dismantled a gun-running ring
around Charleroi and seized dozens of
small arms. The smugglers had been
brazenly faking the signature of the
minister-president of Wallonia on
import documents.
9
Operational centre Many of Europe’s
recent high-profile terrorist attacks
have links to the Belgian arms market
Legacy of war Some estimates say
90 per cent of the arms circulating in
Belgium originates from the Balkans
European plan A far broader effort on
sharing intelligence is needed to stop
arms trafficking, say Belgian officials
Above: Belgian In the month after the bust in Charle-
authorities have roi, Koen Geens, the justice minister,
found it difficult announced that Belgium would take
to penetrate extra steps to break up the smuggling
poorer districts gangs.
such as He has pushed through a measure to
Molenbeek in reactivate the “committee for interde-
Brussels. Below, partmental co-ordination on illegal
a vigil in arms transfers”, which had largely been
Molenbeek on forgotten since 2003. Its restitution is
Wednesday for meant to improve intelligence-sharing
those killed in between the departments of Belgium’s
the Paris attacks often-dysfunctional administration.
Stephanie Lecocq/EPA
Co-ordination is difficult for the
authorities in Belgium, which is divided
along linguistic lines and between
regional and federal administrations.
Brussels alone has six policing zones,
hindering the sharing of information.
Another politician from Mr Geens’
party, Sonja Becq, is proposing
increased phone tapping to tackle arms
traffickers.
One of Mr Geens’ biggest concerns
hinges on supposedly deactivated weap-
ons from massive Soviet-era arms
dumps.
‘You have Technically, deactivated arms are
only meant to be suitable for use as stage
mountains props or collectors’ items. But former
of [guns] in eastern bloc countries have widely dif-
fering standards on what deactivation
Bosnia, means, and many of the weapons can be
Serbia and fixed to fire again. In several countries,
the stockpiles have been looted, most
Croatia. spectacularly in Albania, where more
When you than 100,000 weapons are believed to
take in have been stolen.
Mr Geens stressed that Belgium could
people, you only combat the arms traffickers as part
take in their of a far broader European effort on shar-
ing intelligence.
luggage’ The Belgians acting alone, he says,
could never be “masters of the game”.
Additional reporting by Andrew Byrne
and Jim Brunsden
€4,000
Estimated price of an AK-47 (pictured)
plus its ammunition on the Belgian
black market. It was once as low as
€400 for the rifle plus 300-400 rounds
of ammunition
€300
Possible cost of that gun in the
Balkans. Up to 90% of illegally held
arms in Belgium could be from the
region
900,000
Illegally held arms in Serbia, according to
some official estimates. The exact
number is not known
10
FRIDAY 20 NOVEMBER 2015
Better late then never
for banking discipline
The report into the collapse of HBOS is right to seek punishment
Had the Bank of England’s damning
report on the 2008 failure of HBOS, one
of the UK’s largest banks, been com-
pleted a few years ago, it would have
been very welcome. By naming the sen-
ior executives and board members who
ran HBOS “without due regard to basic
standards of banking” and recom-
mending that several face possible
bans from working in the industry, it
clarifies responsibility.
One drawback is that it took so long
— seven years since the financial crisis
— and another inquiry will be needed
to sanction the individuals criticised. It
is hardly surprising that many believe
that bankers escaped too lightly from
having caused the crisis, and that little
has been done to stop the same disaster
happening again. As the report makes
clear, earlier efforts to investigate the
culprits were mishandled.
A second one is that the regulators
themselves — and the politicians who
established the “light touch” regula-
tory regime for the City of London that
encouraged the HBOS failure — do not
face similar action. Although it
severely criticises the Financial Serv-
ices Authority — now succeeded by the
BoE’s Prudential Regulation Authority
— the official inquiry ends up treating
officials more leniently.
Despite the flaws, it should be com-
pulsory for any banker, or board direc-
tor of a public company, to read this
painful account of how HBOS failed. It
was, as Andrew Bailey, the BoE’s dep-
uty governor, writes, “a simple bank
that nonetheless managed to create a
big problem” by expanding rapidly into
commercial and property lending on
the flimsy foundation of short-term
wholesale funding.
Neither of its two chief executives
following the 2001 merger of Bank of
Scotland and Halifax Building Society
had much banking experience and
they failed to impose any clear risk
Debt burdens weigh on
the emerging markets
Policymakers must be prepared to face up to a substantial threat
Warren Buffett’s magisterial dictum
about the aftermath of financial booms
has now become conventional wisdom:
only when the tide has receded can you
see who has been swimming naked.
In the case of emerging market coun-
tries who have spent years wallowing in
cheap money, however, the issue is
complicated by the changing identity
of the bathers in the water.
Traditional debt busts in emerging
markets, from the Latin American cri-
sis of the 1980s to the Asian financial
turmoil of the late 1990s, generally
used to be centred on sovereign bonds,
usually contracted in dollars and often
linked to the collapse of a currency peg.
But the build-up of debt in emerging
markets over the past decade has been
disproportionately concentrated in the
corporatesector,ofteninlocalcurrency.
Total private sector debt in emerging
markets is now equal to more than 100
per cent of annual gross domestic prod-
uct, higher even than it was in devel-
oped economies on the brink of the glo-
bal financial crisis in 2008.
In fact the problem may be even big-
ger, given that data on private sector
emerging market debt are imperfect.
Some of the cheap money created by
the US Federal Reserve’s quantitative
easing that found its way to emerging
markets came via the “shadow bank-
ing” system, where flows are harder to
record. Many emerging markets have
also borrowed from China’s opaque
development banks to a substantial but
unknown degree.
The classic emerging market crisis
ends with a sudden shock and a severe
economic adjustment — often includ-
ing a debt writedown — that clears the
way for countries to grow again. The
risk today, particularly in countries
such as China with deep-pocketed gov-
ernments, is of a different denoue-
ment: a series of partial short-term
fixes via state interventions such as
discipline. They were overseen by a
board with even less expertise, run by a
chairman who did not encourage open
discussion, which failed to challenge
them or the executives under them.
Meanwhile, the FSA, which was sup-
posed to ensure that the UK’s biggest
banks did not run aground and put the
taxpayer at risk, was broadly deficient
in its job. It operated within the prevail-
ing political assumption of the time
that the FSA “had to be ‘light touch’ in
its approach and mindful of the UK’s
competitive position”. Responsibility
for the consequent disaster was spread
from the bottom of the bank to the top
of the administration.
In theory, the merger of Halifax and
Bank of Scotland should have allowed
the latter to curb a reliance on whole-
sale funding created by a lack of
branches in England and Wales. In
practice, the bank’s executives took it
as a launching pad for a headlong push
into high-yield lending, particularly in
property. Strangely, given the long his-
tory of banking crises, they saw prop-
erty lending as “safe”.
Some lessons of the failures of both
European and US banks in 2008 have
clearly been learnt. Capital and liquid-
ity standards have been tightened and
supervisors are no longer instructed to
defer to bankers because they are
bound to know their trade. These
institutions are structurally sounder,
although it remains to be seen how long
caution endures.
But it remains striking that such a
widespread failure of one institution
and its supervisors should until now
have resulted only in the sanctioning
and fining of one executive — Peter
Cummings, the former head of corpo-
rate banking. That is neither fair nor
prudent. No matter how many worthy
inquiries are made, individual profes-
sional accountability is the surest way
to change behaviour.
bailouts and regulatory forbearance to
keep the show on the road. This risks
the kind of prolonged malaise that
afflicted Japan after the bursting of the
1980s bubble: banks weakened by bad
loans clogging up their balance sheets;
failing companies kept afloat; excess
industrial capacity creating gluts and
threatening chronic deflation.
It is easy to see why the Chinese and
other authorities might prefer avoiding
the debt nettle to grasping it. Although
falling short of the official growth tar-
get would undoubtedly weaken Bei-
jing’s credibility, a full-blown debt cri-
sis and recession, with swaths of banks
and companies going bust, would have
more severe political consequences.
It is already evident from China’s
management of its exchange rate —
and more generally its painful transi-
tion from an export-oriented manufac-
turing model to a domestic demand-
driven service economy — that Beijing
has a habit of trying to make large
moves in a series of small steps, revers-
ing them to avoid short-term disloca-
tions. It would hardly be a surprise if
that mode of behaviour were to emerge
again in the face of a debt crunch. If it
did, long-term growth prospects for
China and emerging markets as a
whole would suffer.
The euphoria surrounding emerging
markets as an asset class started before
the global financial crisis and was rap-
idly resurrected afterwards. That
excessive enthusiasm has now, fortu-
nately, very largely dissipated. But it
was in place long enough to create a
misallocation of capital that could take
several years and many billions of dol-
lars of losses to sort out.
Many emerging market policymak-
ers have a difficult and uncertain
future. They can start by recognising
that they are facing a potentially very
serious problem. The easy good times
have gone; the hard work lies ahead.
★ FINANCIAL TIMES
Schengen can work with better intelligence
Sir, The Schengen zone is often referred
to as one of the central tenets of the
EU; however, it is not sacrosanct from
a merely ideological point of view but
also from a practical perspective.
I am one of the 83,000 cross-border
workers who travel from France to
work in Luxembourg everyday. Forty-
five per cent of Luxembourg’s
workforce is made up of more than
149,000 workers who travel daily from
Belgium, Germany and France. Since
Tuesday, border controls have been
reinstated on the French motorway
and they have paralysed roads for
more than three hours in the morning
and evening. Many workers have given
up trying to get to work and gone home.
While everyone is patient and
understanding of the need for the
checks in the aftermath of last Friday’s
atrocities, this is clearly unsustainable
in the long term without implications
Envoys of peaceful Islam
have a battle to be heard
Sir, While Georgina Butler (Letters,
November 18) may be expressing a
generally held disappointment that
Muslim leaders are not gaining
coverage for condemning the abuse of
their religion by Isis and other violent
extremist groups, she fails to observe
that such people would be doing so at
grave risk to their own lives — as
witnessed by the fatwa imposed on
Salman Rushdie (whatever you may
think of his books and views).
Nonetheless, Muslim scholars have
and do put their lives at risk to
condemn and argue the case for
peaceful Islam. One example is the
paper entitled “Open Letter to Dr
Ibrahim Awwad al-Badri, Alias Abu
Bakr Al-Bagdadi, and to the fighters
and followers of the Self-Declared
‘Islamic State’” of September 19, 2014,
signed by 117 very brave and
committed peaceful Muslim scholars
and leaders. It can be found at
www.lettertobaghdadi.com.
Publicly berating our good Muslim
compatriots only plays into the hands
of violent extremists such as Isis who
seek to divide our society. Many of us
share her desire to see such
condemnation on the front pages of
newspapers, but perhaps Ms Butler
should put herself in the shoes of such
people before berating their lack of
bravery (as might all of us comfortable
westerners). Would she consider
adding her signature to the letter?
Michael Ledzion
Cambridge, Cambs, UK
Meaning of Islamic terms
lost in fight against Isis
Sir, In “Inside Raqqa” (November 18)
you refer to the tax (or tribute) that
business owners must pay to Isis as
zakah or a religious tax. In actuality,
zakah is more commonly known to
more literally mean “grow in goodness”
and alludes to purifying one’s wealth.
In a modern context, zakah is
understood as giving to charity and is
one of Islam’s five pillars and thus
mandatory for all Muslims.
Though Isis may consider the tribute
it demands from the unfortunate
business owners in Raqqa as “zakah”,
I doubt that such business owners as
well as refugees from the Middle East
and most Muslims worldwide would
Poison pills may
be a perfect male
contraceptive
Mexico City
Notebook
by Jude Webber
Letters
for the economy. Moreover, the efficacy
of checking motorway borders has to
be questionable since there are
numerous smaller roads that cross
countries’ borders which are easily
accessible and are not monitored now,
nor were they in pre-Schengen days.
It isn’t difficult for a criminal to evade
customs or police checkpoints. I live
in a village 300m from the France-
Luxembourg border on a route
nationale. Since the border controls
were reinstated on the motorway
people are simply travelling through
my village where there are no checks.
The knee-jerk reaction of installing
more border controls might be a
crowd-pleaser but it is not a sustainable
policy any more for many Schengen-
zone countries. Your editorial “The
shadow of Paris hangs over Schengen”,
November 17) quite rightly points out
that “Europe needs a common
consider payments to Isis as true
“zakah” and a fulfilment of their duty
to give to charity. Let’s not misinterpret
and denigrate another Arabic term that
plays a vital role in Islam, like so many
already have with “jihad”.
Jamil Batcha
Wanchai, Hong Kong
Deploy social media police
against messages of terror
Sir, I accuse social media over the tragic
events in Paris last Friday, November
13. On Monday, John Brennan, director
of the CIA, blamed the “hand-
wringing” over intrusive government
spying and leaks about intelligence
programmes for making it harder to
identify the “murderous sociopaths” of
Islamic State. I believe it is time to
reopen a clamorous dialogue over
surveillance over social media and
telephone calls. The debate over
surveillance has become too polarised.
The rush to extreme measures after
9/11 was counterproductive, but in
recent years, the sweeping
condemnation of all surveillance by
some critics is an overreaction too.
In the days when Facebook scans
millions of pictures daily to find out
which ones are “inappropriate” or too
“sexually explicit” then removes them
within hours, censuring and cancelling
accounts within minutes, it is
inexcusable not to have that
puritanical fervour employed by social
media to police itself from the
numerous jihadi messages that occur
everyday.
Carlos T Mock
Chicago, IL, US
A question for the gentlemen: would
you take a male contraceptive
pill made with scorpion, spider or
snake poison?
If you answered “not on your life”,
Mexican researchers would like you
to think again. They believe that
substances in the venom of such
creatures could block proteins, which
act as “doorways”, on the membranes
of sperm cells in such a way as to stop
them fertilising female eggs.
Indeed, a poison pill sounds
positively palatable alongside some of
the more unpleasant options under
development or on trial. These
include a polymer gel injected into the
scrotum with the promise of long-
lasting contraception that is “likely” to
be more reversible than a vasectomy.
It is fitting that the quest for a male
contraceptive should be conceived in
the country where the active
ingredient of the female pill was
discovered. Carl Djerassi, the chemist
known as the father of the
contraceptive pill, made his biggest
breakthrough in Mexico, working with
a small team in the early 1950s to
discover norethindrone, the synthetic
hormone that makes the pill work by
mimicking the effects of pregnancy.
Now Alberto Darszon, Arturo
Picones and Arturo Hernández, at
Mexico City’s Autonomous university
(UNAM) believe the unique nature of
the proteins on the membranes of
sperm cells — known as ionic channels
— means there would be no disruption
to the functioning of the rest of the
cells. In short: no side effects.
response to the challenges” it now faces
and “intelligence sharing must be
made to work in practice, as well as in
principle”. If it wasn’t so tragic, the fact
that Saleh Abdeslam was apprehended
by police as he crossed from France
into Belgium on Saturday morning and
then let go on his way, would be
laughable. It is imperative that the
intelligence services in Schengen-zone
countries up their game and ensure
frank and efficient sharing of
information.
We must not allow the anti-
immigration element to take advantage
of this tragedy in order to pursue their
policies. Neither must we allow the
rightwing, anti-immigration element
in France and Belgium to throw up a
smokescreen; the terrorist threat in
Europe is largely homegrown.
Fiona Templeman
Évrange, France
Levy a temporary tax
to aid economic recovery
Sir, Martin Wolf has identified the
critical corporate problem for the
British economy — the excess of
corporate savings as the state and
household sectors are deeply in debt
(“The corporate contribution to the
savings glut”, November 18).
Some years ago in my evidence to a
Treasury select committee inquiry I
proposed a temporary tax on quoted
companies returnable after a period of
sustained corporate investment and
economic recovery. The quoted
corporate sector is always the first to
benefit from the effect of government
stimuli as looser monetary conditions
flow quickly into share prices.
Quantitative easing doubled this effect
but failed to reach the consumer.
Therefore the corporate sector saw no
reason to risk investment with no
obvious consumer demand.
Temporary corporate taxation in
order to reduce consumer taxes and
boost corporate activity (and
government revenue) has a history in
other European countries and should
be applied in this case in the UK.
Rodney Atkinson
Stocksfield, Northumberland, UK
Britain depends on a
wider and dynamic world
Sir, It is absurd for Alastair Forsyth
(Letters, November 18) to say that a
vote for Brexit means walking off the
world stage. In or out of Europe, the
UK is a major player in the world
whether it likes it or not, being, for
example, an even bigger economy
than Russia.
The vast majority of countries in the
world do not have to be members of
the EU to trade with it and the UK does
not have to make its decisions
dependent on the approval of more
than 20 other European nations, many
far smaller, with different legal systems
and economic objectives to itself.
The “Little Englander” mentality
seems to be far more apposite to those
who think that this nation depends on
Europe for its existence than to those
who have the confidence that we, like
other nations, depend on a wider and
perhaps more dynamic world in which
we can more effectively play our part.
John Read
London NW11, UK
Because such an approach would
work only when those cell “doorways”
are blocked, it would also be fully
reversible. That may make it easier to
swallow something made from animal
venom. “If it’s proved to be safe, I’d
take it,” says Fernando González, a 53-
year-old chauffeur. “We have a big
population; there’s a lot of us
Mexicans.”
Others were adamant that venom
was a no-no. “If it’s toxic, forget it. I
wouldn’t dare,” says Pedro Juárez, 60.
Women are also divided on its
merits. “I’d welcome it,” says Rocío
Negrete, who works in marketing.
“And it’s natural, too.” But Flor
Martino, 26, an actress, has doubts.
“An intelligent woman won’t trust a
man who has had to remember to take
a pill,” she says.
Mr Picones, a biologist who worked
for 13 years in the pharmaceuticals
industry in the US, is nevertheless
banking on women to “sell the idea” to
their partners. It could be a struggle in
a country where the government
organises workshops on “alternative
masculinity” to educate macho men
that it is not OK to hit their wives; and
where the teen pregnancy rate is by
far the highest in the OECD.
It is early days. Mr Darszon, a wiry
academic with a long bushy beard, is
an authority on sperm and has been
studying ionic channels for 30 years.
But the male contraceptive research
project has been running only for two,
in partnership with the Mexico City
government’s ministry of science and
technological innovation, which
Friday 20 November 2015
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
Burning more fossil fuels is
no answer to air pollution
Sir, Matt Ridley (Letters, November
18) wants to dispute and dismiss the
role of fossil fuels in most of the 7m
deaths from air pollution worldwide
each year. However, he fails to
acknowledge that the World Health
Organisation noted that coal, as well as
wood and biomass, burnt for cooking
and heating, is a major source of the
indoor air pollution linked to the
deaths of 4.3m people each year. He
also omits any mention of the deaths of
the 3.7m people who are exposed to
outdoor air pollution, most of which is
produced by the use of fossil fuels for
power, industry and transport.
The WHO warns that these figures
cannot simply be added together as
about 1m of these people whose lives
are cut short are exposed to both
indoor and outdoor pollution.
Precision is not possible here but it
does seem reasonable to conclude, as
I did in my letter of November 12, that
“7m people worldwide die each year
due to indoor and outdoor pollution,
mostly caused by the burning of fossil
fuels”. Internal air pollution is indeed a
major issue, as I and many others have
emphasised, but Lord Ridley seems to
want to argue that it follows from this
that we can dismiss the importance of
external air pollution.
Moreover, Lord Ridley is trying to
obscure the key issue: that the
consumption of fossil fuels kills many
millions a year now and in the future
from air pollution and climate change.
Your article about the severe air
pollution problems in New Delhi and
other Indian cities (“Gasping for air”,
The Big Read, November 18) illustrates
this clearly. It is simply absurd to argue
that the burning of fossil fuels is the
best way to reduce air pollution.
We can radically reduce both local
air pollution and greenhouse gas
emissions, and create a much healthier,
wealthier and more productive world,
by making the very attractive
investments which allow us to move
strongly and urgently away from fossil
fuels. It is disingenuous to pretend
otherwise.
Lord Stern of Brentford
IG Patel Professor of Economics and
Government, London School of Economics
London WC2, UK
Proposals for Osborne that
will not hurt the party
Sir, I have two suggestions to make to
Oliver Rowse (Letters, November 17).
First, the chancellor should remove
the 2.5 per cent element of the triple
lock for state pensions. It was included
at a time when inflation was far higher
and is becoming socially decisive.
Second, the inheritance tax threshold
should be reduced and the special
exemptions that apply to first
residences for the assessment of care
home fees should be removed. Why
exempt houses and not productive
assets or other investments? It makes
no economic sense.
The Tory supporters in the shires
and their MPs might complain but it is
hard to believe seats would be lost. One
Nation Toryism would be reinstalled.
Keith Billinghurst
London SE9, UK
COMMENT ON FT.COM
The Exchange
Dambisa Moyo: How an ageing population is
driving the decline in equities
www.ft.com/theexchange
provided 20m pesos ($1.2m) in
funding, initially for three years.
The scientists, based at the UNAM’s
institute of cellular physiology and
institute of biotechnology (IBT), used
much of the money to buy a special
robot, the only one of its kind in Latin
America, Mr Darszon says. It uses
human liver cells, hamster cells and
sperm from rats and paid student
donors to test whether venom can
inhibit the ionic channels.
The team is working its way
through the IBT’s catalogue of 900
worldwide toxins to see if any affect
the two sperm channels that have
precise functions necessary for
fertilisation. They have examined
about 150 so far.
While other researchers are also
targeting ionic channels, Mexico has
the extensive poison catalogue and
many of the animals. “I wouldn’t
venture to say that we are the only
ones using toxins. But in the
[scientific] literature, there has been
no study on toxins,” Mr Darszon says.
Arlet Loza, in charge of screening
the samples, has examined tarantula,
scorpion and coral snake venom so
far. “We have seven or eight
candidates,” she says. “But we can’t
yet say, ‘yes they work’.”
“We’re looking for a needle in a
haystack,” said Mr Hernández. “We
haven’t seen a glimmer of it yet. But
we are confident we will find some
needles in there along the way . . . we
think Mother Nature is wise.”
jude.webber@ft.com
Friday 20 November 2015
Invisible threats that insurers cannot measure
FINANCE
Gillian
Tett
U
ntil recently the civic lead-
ers of Kuna, an Idaho city of
15,200 people, did not
spend much time thinking
about the cost of global ter-
rorism. Now, however, they are doing
just that. As the city prepares to set its
2016 budget, its treasury office has been
debating a new question: should Kuna
spend an estimated $40,000 of taxpay-
ers’ money to buy an insurance policy to
recoup damages if their city is ever hit
by a terrorist attack? Or is that a waste of
funds?
In the event the city council voted
against taking out the policy. John
Marsh, the city’s treasurer, says Kuna is
already partly covered by a county-wide
policy, and the risks in the state do not
necessarily justify the additional
Paris must
shake Europe’s
complacency
GLOBAL POLITICS
Philip
Stephens
T
here is an impulse in
Europe’s political dis-
course, by no means the
exclusive property of the
left, that assumes nothing
bad happens in the world without it
being somehow the fault of the west in
general and the US in particular. This is
the mindset that casts Saddam Hussein
as a victim, Hugo Chávez a hero and
Russia’s Vladimir Putin as a bulwark
against Nato expansionism. The mass
murder of Parisian concertgoers and
Russian tourists may be crimes, but
they are surely also the product of
unprincipled great power intervention.
Listen to Jeremy Corbyn. The leader
of Britain’s Labour party cannot censure
the outrages of extremist jihadis with-
out reference to the supposed crimes of
the US: the siege of Falluja, say, or killing
rather than arraigning Osama bin
Laden. “We have created a situation
where some of these forces have grown,”
was Mr Corbyn’s reflection on the
slaughter in Paris.
There is no shortage of criticisms to be
made of the west — and they do not start
or end with the invasion of Iraq. I find it
shocking that Saudi Arabia is still
OPINION
Tim
Hayward
T
oday we regard the oyster
and lobster as luxury foods,
but it has not always been
so. Oysters have been com-
mercially farmed since the
time of the Romans and have a remark-
able talent: when collected, they close
their watertight shells, trapping seawa-
ter inside. This useful skill doubtless
evolved so they could survive being
beached at low tide. But it meant that
oysters could be shovelled into a barrel,
carted to a city, and left under a bar —
sometimes for weeks — while remaining
alive and fresh.
Lobsters, or similar forms of inverte-
brate, crustacean arthropod have been
around longer than humans and it is
quite possible that we have been eating
them for a very long time. They are also
unique among the food we eat today in
that we often buy them alive and kill
expense. “We don’t consider ourselves a
target of terrorism here in Idaho,” says
Mr Marsh. “It’s rural.” Nonetheless he
concludes: “We are in a changing world
and we may need to look at this further
down the road.”
This shows the degree to which the
shadow of terror — or, more accurately,
reports about terror — is spreading into
unlikely places. It also highlights a big-
ger dilemma for corporate and civic
leaders.
As the world reels from the horror of
the Paris attacks, it casts the spotlight on
a question that needs more debate: can
institutions protect themselves from
the financial risk of terrorism — and do
so in an effective way?
The answer is yes and no.The good
news is that in the past decade the insur-
ance industry in the US and Europe has
made huge progress in establishing a
framework for dealing with traditional
terrorism threats — the types of attack
that occurred in Paris, which kill people
and damage properties.
Such progress was badly needed. The
attack on New York’s World Trade
Center in 2001 resulted in a bill for the
treated as a staunch ally even as it
exports the extreme version of Islam
that informs the murderous credo of the
jihadis. Then there is a welcome
afforded Egypt’s president Abdel Fattah
al-Sisi whose violent repression of the
Muslim Brotherhood opens the door to
Isis. With its oil and autocrats, the Mid-
dle East is a graveyard for anything pre-
tending to be a principled foreign policy.
None of these hypocrisies can be held
up in exculpation of the tyranny of the
self-styled Islamic State. Those who
think it better to explain than condemn
forget that by far the greatest number of
victims of Isis’ crimes are fellow Mus-
lims in Iraq, Syria and, most recently,
Beirut. Or that the caliphate replaces
liberty with theocratic intolerance, sub-
jugates women and murders homosex-
uals. The idea that the west should
shoulder blame rests on a corrosive
moral relativism blind to the essential
evil of those who kill and maim. Indis-
criminate murder is wicked. It demands
unvarnished condemnation. Full stop.
You could ask whether anyone cares
what Mr Corbyn thinks. The Labour
leader’s formative memories are of the
Vietnam war and the nasty campaigns
waged by the CIA in central and Latin
America during the 1970s. He has not
stepped out of the time warp. He will
never be prime minister. Even Fidel
Castro thinks it is time to move on.
Yet Mr Corbyn’s response illuminates
a broader strand of European thinking
— a complacency that takes for granted
the Enlightenment and has sapped the
willingness to defend its essential
Let them eat lobster — it was never the food of kings
them ourselves. They are plentiful, at no
particular risk of extinction, and utterly
delicious, having sweeter and better-
textured flesh than fish. They survive in
a wide range of sea temperatures and
are easiest caught by simple and sus-
tainable methods.
Like oysters, the creatures’ ability to
survive out of water meant they could
be transported far inland and supply
spankingly fresh protein long before
refrigeration made it possible to distrib-
ute other forms of fresh fish. For this
reason, lobster and oysters were often
considered a food of the poor in industr-
ialised cities. Nineteenth-century
prison governors in some coastal states
of the US were forbidden to feed their
prisoners lobster more than a few times
a week, as it was considered a “cruel and
unusual” privation.
At low tide you can still wander along
the muddy banks of the Thames in Lon-
don and see vast “middens” of dis-
carded oyster shells. These mark the
spot of bank-side pubs, where revellers
would consume huge numbers of oys-
ters and throw the shells into the river.
As the deposits are still there after cen-
★ FINANCIAL TIMES
Comment
city initially estimated at $40bn but it
was at first unclear whether insurers
had to pay out for terrorist risks. Mean-
while a bitter dispute erupted in the
insurance world about whether the
event should be defined as one attack or
several. Indeed the risks were so hard to
model that many insurance companies
stopped offering cover at all.
Since then, many legal uncertainties
The bad news is that
cyber terrorism is
presenting a whole new
wave of uncertainty
have been ironed out (at least for tradi-
tional terrorist risks) and governments
have created implicit and explicit back-
stops.
In 2002, Congress introduced a law
guaranteeing that the US government
will absorb catastrophic physical losses
resulting from terrorism; it was
renewed this year. The formula is fiend-
ishly complex — but essentially the
underpinnings. Somehow it is easier to
blame the west than to admit that there
are those for whom freedom, tolerance
and the rule of law are natural enemies.
We saw this when Mr Putin over-
turned the continent’s postwar security
order by sending his army into Ukraine.
The reaction of many on the right as well
as the left was to mutter that the fault
lay with Nato’s decision to welcome the
new democracies of eastern and central
Europe.
There are many more who have
decided in the wake of Edward Snow-
den’s revelations that the principal
threat to Europe’s freedoms comes from
the electronic “snooping” of domestic
intelligence services rather than from
jihadis wielding Kalashnikovs and
wearing suicide vests. Hopefully the bal-
The idea that the
west should shoulder
blame rests on a corrosive
moral relativism
turies we can assume London’s dock
labourers were ordering oysters at a far
greater rate than the wealthiest occu-
pants of the City can afford to today.
As industrialised cities developed,
what we would now call “supply chains”
were created and preserved, packaged,
tinned and eventually chilled products
became the more convenient diet. Pres-
tige restaurants, though, never fell out
It is only a matter of time
before they acquire a taste
for human flesh, so we need
to acquire a taste for theirs
of love with food so fresh that it still
moved, and developed dishes that
remain in the canon today. It is hard to
go wrong with lobster Newburg (egg-en-
riched cream and cognac), lobster a
l’armoricaine (tomato, tarragon, shal-
lots), or the king of the lobster dishes,
first created by Auguste Escoffier in
about 1880. Lobster Thermidor is
superbly rich and massively compli-
insurance industry is expected to
absorb the first $37.5bn of losses from an
attack, after which the government
steps in.
And that, in turn, has persuaded US
insurance groups to offer cover to busi-
ness and government entities — such as
the officials in Kuna — and kept terror-
ism insurance fees relatively stable.
But the bad news for corporate and
civic leaders is that cyber terrorism is
presenting a whole new wave of uncer-
tainty. Until now, when the intelligence
community — and the insurance indus-
try — have tried to measure the cost of
terrorism, they have tended to focus on
physical attacks. This week, for exam-
ple, the Institute for Economics and
Peace, a think-tank in Australia, pub-
lished a report suggesting that acts of
terror cost about $52.9bn globally last
year, the highest tally seen since 2001.
That calculation refers almost exclu-
sively to physical assaults, however,
since cyber terrorism has hitherto not
been very visible.
But the risk of cyber terrorism is ris-
ing fast. And the problem is that, if an
attack did happen, it is unclear how that
ance will shift somewhat in the after-
math of the Paris attacks.
The original sin was the assumption
that the end of the cold war did indeed
mark the end of history. The compla-
cency straddled the boundary of eco-
nomics and politics. Liberal markets
would create permanent prosperity,
while political pluralism would become
the default system of governance. The
international order would be remade in
the image of European multilateralism.
The first of the illusions was shattered
by the financial crash of 2008, but gov-
ernments and electorates have held on
more tenaciously to the idea that
democracy is the natural destination of
politics. When things have gone wrong
— the terrorist attacks of al-Qaeda and
now Isis and Russia’s revanchism — the
instinct has been to treat them as excep-
tions. The curtains, though, have now
been torn open, not least by the influx of
refugees fleeing violent chaos on
Europe’s periphery.
What is required is a readiness to
fight. This means a lot more than simply
sending more warplanes to attack Isis in
cated. It is also delicious, combining a
cream sauce enriched with eggs, sherry
and mushrooms with a gratin topping.
While some restaurants still feature
oyster and lobster as premium dishes, it
is not unusual to be offered oysters,
fried or baked, as affordable starters —
something never seen a few years ago. In
the run up to Christmas, the discount
supermarket chains Lidl and Iceland are
offering frozen lobsters for under £5
(they make a great Thermidor).
Lobsters and oysters are robust crea-
tures and they breed vigorously. We
have artificially kept them as prestige
foods, so it is unsurprising that their
price is now dropping.
Now that previously aristocratic
salmon is the go-to protein at every cor-
porate event or provincial wedding, per-
haps we should wonder at what is next.
The answer may again come from under
the sea. In the 1930s Josef Stalin ordered
the introduction of the red king or Kam-
chatka crab to the Barents Sea to create
a new source of cheap protein for Soviet
workers. Eventually the crabs, indige-
nous to the northern Pacific, grew to
accept their warmer home, breeding
cost might be handled. In the past cou-
ple of years the insurance industry has
started to offer policies against cyber
hacking in a general sense; surveys sug-
gest that between 30 and 50 per cent of
large American companies now have
such policies in place.
But cyber terrorism is shrouded in
legal uncertainty, and the costs of an
attack are hard to model. There is also
deep uncertainty about what role the
government might play in America and,
most crucially, whether the federal
guarantee could be invoked if an attack
occurs.
This suggests that there is now an
urgent need for Washington to develop a
clearer framework; indeed, the whole
tangled question of who should pay for
cyber defences is badly in need of
greater debate.
But sadly this may not happen until a
big terrorist cyber attack hits. In a
hyperconnected world, cyber terrorism
could deliver damage on
a whole new level, be that in Paris,
Washington or Idaho.
gillian.tett@ft.com
its strongholds, though the case for
fiercer military action is a strong one.
Fighting means recognising that the val-
ues that form our societies cannot be
taken for granted; that the postmodern
order imagined after 1989 is at very best
some way off; and that even as they con-
front the enemies of freedom and toler-
ance European governments must
address deprivation and marginalisa-
tion within their societies.
This in turn demands a willingness to
admit there will be costs. But then any-
one who has glanced at the history of the
20th century will know that today’s lib-
erties came at a price. Nor should we
imagine that governments will not have
to make ugly compromises — not least
in Syria — if some order is to be restored.
Above all, it is time for Europeans to
celebrate what they have built and rec-
ognise it is under threat. The streets of
Paris this week have seen a heartening
resolve not to be cowed by the murder-
ers. If Europe does not stand up for its
values, who else will?
philip.stephens@ft.com
prolifically, moulting more regularly
and growing up to 2m in leg span.
They were so successful that they
began migrating across the ocean floor
in vast packs. Spider crabs the width of
cars are, even now, moving along the
bottom of the North Sea towards the UK
coast, eating everything in their path. It
is the stuff of science fiction movies.
At the moment, Kamchatka crab is a
delicacy in London restaurants, where
the ability to select a live, angry, metre-
wide creature from a tank and have it
killed and brought steaming to the table
is a spectacle that delights the super
rich. But the crabs have reached the
Norwegian coast. It is only a matter of
time before they come ashore here,
lurching up the beach having acquired a
taste for human flesh — so we need to
start acquiring a taste for theirs, fast.
King crabmeat is superb, with a meatier
texture and sweeter taste than its
skinny little capitalist cousin. Surely,
government must intervene. Drop the
prices — we need to eat them before they
eat us.
The writer is an FT magazine columnist
11
Cut doctors’
pay and the
health service
will bleed
OPINION
Daniel
Westacott
W
hen I graduated from
medical school I
pledged to first do no
harm. Why, then,
nearly a decade later,
have I voted to strike, becoming part of
the first cadre of junior doctors since
1975 to support industrial action?
It would be disingenuous to pretend
that pay is not part of the reason we have
defied Jeremy Hunt, the health secre-
tary, who has sought to change the
terms of our contracts. No one likes a
pay cut. But this is not a case of greedy
medics.
I am striking because retention and
recruitment is already in crisis — and
the health secretary is worsening the sit-
uation. In a market for skilled labour,
medicine is losing out. And the ones
who will suffer will be the patients
Last year, only about half the doctors
who completed their foundation pro-
gramme after graduation chose to pur-
sue a specialist training course, down
from about three-quarters five years
ago. Medics are shunning the more com-
plex specialisms essential for a compre-
hensive health service. They have seen
the stressful job done by those ahead of
them and looked elsewhere — abroad or
to other professions. A third of doctors
in accident and emergency units have
left the UK in the past five years. More
than 1,600 junior doctors registered to
work abroad in the days after Mr Hunt
announced his contract offer.
Retention is far from the only prob-
lem; recruitment is harder, too. The best
and brightest school leavers once un-
thinkingly chose medicine for the res-
Jobs in the City and
technology are
increasingly seen as more
rewarding among medics
pect in which it was held and its finan-
cial security. No longer. Medical stu-
dents graduate with an average of
£45,000 of debt, and under Mr Hunt’s
plans will start on about £25,000 in
basic salary — less than banking, law,
accountancy, IT and construction.
Doctors also incur debts beyond stu-
dent loans to earn the qualifications
necessary to practice. Since I graduated
I have spent more than £30,000 pursu-
ing my vocation, enough for a house
deposit. Consultancy — the most senior
level in the National Health Service,
with more chance to work privately —
may become a route only for those who
can afford it.
Jobs in the City and technology are
increasingly seen as more rewarding
among medics and would-be medics. In
part this is about money. But as these
professions seek to persuade graduates
that their careers have “purpose”, and
ease off on average hours, there is more
to their lure than monetary reward.
This reduction in numbers of high-
quality candidates willing to make the
sacrifices to complete specialist training
is being felt. In 2005, there were 11 eligi-
ble for each available posts for higher
surgical training in orthopaedics, my
specialism. Last year, the ratio was 2:1.
The weakening of competitive pres-
sure for jobs will lead to a reduction in
the quality of individuals entering train-
ing. Add to this the proposed contract
changes, which would remove the obli-
gation on NHS trusts to monitor hours
worked. Staff shortages are increasingly
filled by short-term “locum” doctors,
who are less qualified but better paid on
an hourly basis. Here is an NHS geared
towards costly short-term fixes rather
than one built for the future.
The new contract proposed by Mr
Hunt extends what are counted as nor-
mal hours (outside which doctors can
earn supplementary payments) to
10pm on weekdays. Saturday work will
no longer attract higher rates. The con-
tract will also make doctors less keen on
doing poorly paid academic research
while in practice, stifling innovation.
I have thought hard about the ethics
of strike action. I strive every day to act
in the best interests of my patients. But
no doctor can do this without a func-
tional system with the right incentives.
And this is why I will strike: not for
the pay at the end of the month but for a
system that attracts and keeps the best
in the years to come.
The writer is a specialty registrar in trauma
and orthopaedics at University Hospitals
Coventry and Warwickshire
12
Slick go-betweens at the Inns of Court
WORKING LIVES
Emma
Jacobs
Modernisation may bring
big changes to barristers’
clerks but they can still
help make or break their
employers’ careers
A
nthony Trollope’s 1862
novel Orley Farm includes a
vivid description of Mr
Crabwitz, the clerk to bar-
rister Thomas Furnival.
This was a “gentleman who . . . consid-
ered that no inconsiderable portion of
the barrister’s success had been attrib-
utable to his own energy and genius”.
More than 150 years later, says Profes-
sor John Flood, who has written one of
the only books on the subject, there are
many clerks who could say the same.
Essentially, their job is to manage the
diaries, workloads and the careers of
barristers. They also sort out the money
side, negotiating fees and delivering
invoices.
Scott Baldwin, author of a blog, Not a
Barrister, likens the role to being a nurs-
ery nurse. “The vast majority of barris-
ters spend half their time worrying they
won’t pay the mortgage, the other half
thinking they’re God.”
The role of a clerk is much like an
agent, making sure the self-employed
barristers have a good supply of cases to
plead in court. Mr Baldwin, senior clerk
at St Mary’s Chambers in Nottingham,
says barristers are “inherently paranoid
all the time”. He cites the late novelist Sir
Female entrepreneurs get a helping hand in a changing Japan
The number of women
leading businesses is still
tiny, says Kana Inagaki
Maria Mercedes Corrales knows well
the challenges of navigating the corpo-
rate world of Japan as a female boss.
When she took over the struggling
Japanese operations of Levi Strauss in
2001, she vividly recalls how some of
her employees and clients refused to
speak to a female president. That wall
of silence came down gradually as she
turned around the company’s perform-
ance.
“When you are a woman you are put
to a test,” she says. “You are measured
by the results that you deliver.”
Backed by her experience — which
later included a stint heading the Japa-
nese unit of Starbucks — Ms Corrales,
from the Philippines, has returned to
Japan for a new role as mentor to a
group of budding female entrepre-
neurs. “A lot of things have changed. It
is like a renaissance in Japan for
women,” Ms Corrales says.
Much of the change is driven by
Terry Pratchett’s “neurovores” — peo-
ple who live by their nerves — as an
appropriate description.
As clerks gain experience and stature
they can both help and guide a barris-
ter’s career, as they talk up rising stars
and advise them on when to apply to
take silk (ie, rise to the eminent status of
Queen’s Counsel, or QC).
Periodically, the last rites are read on
the clerk’s job. There are probably fewer
than 2,000 barristers’ clerks in England
and Wales. And yet the job survives and
thrives. One clerk who left the business
a decade ago, recently returned to his
former chambers and was shocked. “My
God, it was like I’d popped out for a
sandwich. Nothing had changed.”
However, the job has been affected by
technology as well as the modernisation
and globalisation of the legal profession.
As with many administrative roles,
Prof Flood, director of the Law Futures
Centre at Griffith University, Queens-
land, as well as author of Barristers’
Clerks: The Law’s Middlemen, says the
work has been transformed. “There is
the increasing use of technology in the
job — electronic diaries, billing.” Previ-
ously barristers’ clerks would amend a
thick paper diary, wearing out erasers to
move appointments skilfully. At the
same time, Prof Flood says demand for
skills such as marketing and networking
means clerks must be slicker than ever.
Brian Lee, chair of the Institute of Bar-
risters’ Clerks and senior clerk at 7
King’s Walk chambers, says the expan-
‘Barristers have no real
concept of life outside
those walls, which is why
they rely on sharp,
streetwise clerks to run
their busy lives’
prime minister Shinzo Abe’s push for
more women to be in the workforce. If
he succeeds in closing the gender gap in
employment, Goldman Sachs estimates
it would boost Japan’s gross domestic
product by almost 13 per cent.
Despite this, efforts to promote more
women to senior roles have still to
inspire women to become entrepre-
neurs. In the last financial year, only 16
per cent of new businesses were started
by women, according to Japan Finance
Corporation, the government-owned
bank.
“One of the things [Japanese women]
face is access to women role models
both in leadership and mentoring in dif-
ferent skill sets,” says Rena De Sisto,
international corporate social responsi-
bility executive at Bank of America. She
heads a global mentoring programme
for women leaders co-organised with
Vital Voices, a non-profit organisation
for empowering women.
When the programme, launched in
2012, held an event in Tokyo last month,
70 women applied for 11 slots. Ms Cor-
rales cancelled her travel plans to apply
for the role of mentor. She is now coach-
ing managing director Yuki Uchida, 32,
★ † FINANCIAL TIMES
BUSINESS LIFE
sion of commercial chambers since the
1990s and the establishment of offices
overseas, particularly in Singapore, has
demanded a more sophisticated opera-
tion. Initially, a new job — practice man-
ager — was created. People with man-
agement expertise were sought: former
army officers and former solicitors
entered chambers. Yet ultimately,
clerks won the day by embracing these
professional skills.
Prof Flood says clerking is largely
learnt on the job. “This is a job based on
craft and apprenticeship . . . learning
from a master. This is why the ‘old
school’ clerks are still in high demand.”
Carolyn McCombe is chief executive
at 4 Pump Court, where she heads the
clerks and administration team. Her
path to the role was unusual as she read
law at Cambridge university and
became a partner at a solicitors’ firm. It
was important to learn to be a clerk, she
says, although she did not start at the
very bottom, by pushing trolleys or pho-
tocopying. “It is a bit like policemen:
you need to have been on the beat to
understand what policing is all about.”
While automation is likely to replace
some legal jobs, Mr Baldwin believes it is
more likely to threaten the UK’s solici-
tors — who have a less theatrical role —
than barristers and their clerks. Prof
Flood, however, sees no one as immune.
At a time when higher education is
expanding, this is one of the few white-
collar jobs with long-term prospects
open to school-leavers. One former
clerk says it was a good education: he
did anything from making tea to acting
as a pallbearer at barristers’ funerals.
Mr Baldwin, raised in Moss Side in Man-
chester, says he fell in love with the job
from day one. “It was another world.
People knew Latin and poetry and
drank wine.”
One former clerk suggests that barris-
ters’ typically privileged background is
why they need clerks: “Barristers live in
Maria Mercedes in shaping her business strategy at
Corrales, right, Re:public, which supports innovation in
mentoring Yuki companies and cities.
Uchida “We’re at a phase many start-ups
face,” Ms Uchida says. “We need to
think about where we want to take the
company from here and how much we
want to expand.”
Tamiko Hayashi, founder of Social
Concierge, a non-profit organisation
promoting sustainable lifestyles with
online magazines and shops, says the
hurdle for her is the lack of know-how
in gaining access to capital. Through the
programme, she has learnt how to
approach bankers to finance the expan-
sion of her business.
a bubble: boarding school, then Oxford
or Cambridge, then spend the rest of
their lives in the inns of court. They have
no real concept of life outside those
walls, which is why they rely on sharp,
streetwise clerks to run their busy lives.”
Mr Baldwin disagrees: while some
have led a closeted life, the bar has
changed and become less elitist, he says.
David Hockney is the senior clerk in
Monckton Chambers, which specialises
Kelly Walker
(top) joined
in European, human rights and compe-
tition law. The view over Gray’s Inn’s
Monckton after lawn is reminiscent of an Oxbridge col-
a suggestion
from a
lege quad. He joined 25 years ago, fol-
lowing two uncles who worked as clerks.
jobs agency; For the first few years it was “hard
Brian Lee, graft”, he says. “Not all youngsters can
(above) chair of look beyond that.” As a result, he has
the Institute of tried to give clerks clear career paths.
Barristers’ Another change in clerking has been
Clerks the arrival of women. Today they make
Rosie Hallam
up 15 to 20 per cent of clerks, according
to the IBC. Ms McCombe says: “It is inev-
itably blokeish, as there are an awful lot
of blokes. However, I have not encoun-
tered sexism or barriers; in fact quite
the reverse.”
Kelly Walker, a 22-year-old clerk at
Monckton, had intended to become a
legal secretary until a legal recruitment
agency suggested clerking. “It’s not
something that anyone at school advises
you to do,” she says. Usually, she notes,
“you hear about it through your family”.
In fact, her sister came for work experi-
ence, and is now keen to follow in Ms
Walker’s path.
If so, she may be safest to opt for bar-
risters working on commercial cases.
Recent cuts to legal-aid funding, as part
of the UK government’s austerity drive,
means that “crime doesn’t pay for law-
yers”, says Mr Lee. “Many of the smaller
criminal chambers will shrink, includ-
ing the number of clerks they hire.”
emma.jacobs@ft.com
Twitter: @emmavj
Analysts say the low level of entrepre-
neurial activity in Japan also stems
from attitudes towards start-ups,
including the fear of failure. A report
last year from the Global Entrepreneur-
ship Monitor, which analyses early
stage start-up activity, respondents in
Japan expressed a fear-of-failure rate of
54.5 per cent compared with 43 per
cent in the UK and 34 per cent in the
US.
As part of her mentoring role, Ms
Corrales also sought to ease Ms Uchida’s
fears about her prospects and her capa-
bilities. “You have to believe in yourself.
We are put on the job because people
think we are capable of doing it,” she
says.
Looking back, Ms Corrales says she
would not have accepted her jobs at
Levi Strauss and Starbucks had she
been offered a No 2 position: “When
you are at the top, you set the tone in
your organisation.”
Rewards can also override the fears of
sitting at the top. In Ms Corrales’ case,
those rewards were the friendships she
forged with her initially sceptical male
colleagues at Levi Strauss, that are now
a decade old.
Personal technology
Mark One/ Thermos
‘Smart’ cup and bottle quench
thirst you never knew you had
TIM BRADSHAW
Water is our simplest
nutrient. It requires no more
preparation than turning on
a tap. We know when we
need to drink it because we
feel thirsty. Fully
functioning adults tend not
to forget to drink enough
water to survive.
Yet companies old and new
want to convince us that
humanity has a drinking
problem. New “smart cups”
from Thermos and San
Francisco-based start-up
Mark One use an array of
sensors that beam users’
real-time data about water
consumption to a
smartphone app. But does
such a simple act as drinking
really need all this tech?
Being well hydrated can
make us feel more alert and
focused, as well as boosting
our immune system. The
apocryphal advice of eight
glasses of water a day is
actually a little less than the
2.7 litres recommended for
women and 3.7l for men by
the US Institute of Medicine.
But, as the institute
concluded: “The vast
majority of healthy people
adequately meet their daily
hydration needs by letting
thirst be their guide.”
Pryme time
Nonetheless, Mark One
believes its algorithm can do
better than humans.
When setting up its $100
smart cup, called Pryme
Vessyl, I told the app my
age, weight, height and
sleeping hours. As an
optional extra, I also gave it
access to my iPhone’s
activity and workout data,
collected through fitness
trackers such as Apple
Watch or Jawbone’s UP.
Pryme Vessyl crunches
this data in the cloud to
create what it says is a more
personalised and dynamic
hydration target. But rather
than tally this in regular
litres or ounces, it uses a
curious metric of its own
invention, also called Pryme.
This obscurely calculated
score is tallied up on the app
and also appears as a thin
strip of white light on the
outside of the cup. The line
lights up when you tilt the
cup, ending in a blue dot if it
judges you are sufficiently
hydrated at that moment.
This light is an elegant
touch on the otherwise
minimalist white cup, which
at least is not too brash
about its “smarts”. The white
matt plastic exterior is
pleasant to hold and
comfortable regardless of
whether the cup contains
iced water or hot tea.
However, the glass
interior makes the cup
pretty heavy, while its
“splashproof” sliding cap
does not prevent drips and
leaks. This makes it
unsuitable for use during
vigorous exercise, when
hydration monitoring might
be most useful.
Planet of the apps
What they are
Waterlogged and Daily
Water apps for iOS
Why you should try
them
To track your hydration
without splashing out on a
“smart cup”, there are
Friday 20 November 2015
My main incentive for
maintaining Pryme became
to silence the constant nag
of push notifications that
arrived whenever I was short
of my goal. My phone often
pinged when I had just taken
a sip with urges to take
another, to “get you to the
next level”.
Mark One has raised
millions of dollars in venture
capital to develop a more
ambitious cup that claims to
track the type and brand of
drink inside, including
calorie and caffeine content.
However, that product has
had more than a year of
delays because of problems
with sensor reliability, with
no shipping date in sight. In
the past few months, the
company has suffered the
departure of its heads of
health, design and software,
as well as founder and chief
executive Justin Lee.
Thermos 2.0
Thermos’s $60 Smart Lid
device is more utilitarian. Its
app simply tracks how much
water is in the bottle (in case
you can’t see through its
transparent side), its
temperature (in case
holding the cup was
insufficiently precise), how
much water you have
consumed and — for fans of
pointless statistics — how
many minutes you have
spent drinking and how
many sips you have taken
that day. You can set your
own water consumption
goal (in plain old litres), with
a bar tracking your progress,
and the total amount drunk
can also sync to Fitbit’s app.
The plastic bottle and its
lid are light and watertight,
which at least makes it more
practical than the Pryme.
But I found the data transfer
unreliable. On one occasion,
it told me I had spent 1,143
minutes taking one sip, to
consume 7ml of water.
Verdict
The human body comes
with robust hydration
sensors — based on input
and output — pre-installed
at no cost to the user. We
may all benefit from the
occasional reminder to drink
more water, but there are far
cheaper ways to do that
than these devices.
Amid the ongoing
“internet of things” hype,
the argument that a cup or
bottle must be “smart” just
does not hold water.
several cheap apps.
Waterlogged’s basic
features, including
recording each glass or
bottle drunk and a daily
reminder, are free. Paying
$3.99 unlocks extras such as
more notifications and the
ability to share data.
Daily Water offers some of
those features for free but
includes ads, which you
pay to remove. Logging a
glass of water is faster on
Daily Water, but neither are
particularly hard to use.
Friday 20 November 2015 ★ FINANCIAL TIMES 13

ARTS

A smart, spirited reach the end, which is also the begin-

ning. Love is quite something: sad and
smudgyasafarewellkiss.
The black-and-white showcase from

heroine for the the young first-time director is all but a

genre of its own, but Mexico’s Alonso
Ruizpalacios infuses his debut Güeros
with verve and imagination. After a diz-

21st century zying red herring of an opening, he

leaves us with Tomás (Sebastián
Aguirre), a teenage tearaway sent by his
despairing mother to live with older
brother Federico (Tenoch Huerta) in
Mexico City. There, the straight and nar-
FILM row is evaded; what unfolds is an urban
odyssey and the search for a lost
Danny rock’n’rollsinger.
Woozy and urgent in the same
Leigh moment, Güeros isn’t shy in its devotion
to the French New Wave, but its style has
substance: despite being brothers,
Tomás is light-skinned (for which güeros

A
nd so, it’s goodbye. After
three previous films, more
than $2bn at the box office
and a lifetime in make-up
for Stanley Tucci, The
Hunger Games draws to a close with
Mockingjay — Part 2. Denied the indul-
gence of an early recap, even fans may
need a moment to reorientate. (Anyone
thinking of just jumping in now would be
best advised to find some kind of online
course.) In our last meeting, the fearless
Katniss Everdeen (Jennifer Lawrence)
wasattackedbyhersometimeloveinter-
est Peeta (Josh Hutcherson), brain-
washed by the barbarous Capitol (heart
of the post-apocalyptic North America
now renamed Panem). Now, her throat
is a mesh of bruises; when she tries to
speak, there is silence. She will have to
findhervoice.
The sound you hear when she does is
an industrial-size narrative arc being
loweredintoplace.Whiletheforeground
is given over to a climactic assault on the
Capitol, the finale also sees Katniss — the
backwoods girl who started a revolution
— taking charge of her own fate in the
face of not just tyrants, but also her own
side’sPRandmarketingstrategy.
For all its heroine’s personal growth,
still more sharply drawn is the hall of
mirrors of power and propaganda, the
media battle between the flailing Capitol
and revolutionaries already jostling for
place. For a CGI-stuffed blockbuster
franchise aimed at 14-year-olds, this was
always a smart one, its real life echoes at
oncegrimlyspecificandusefullyvague.
Natalie Dormer and Jennifer Lawrence in ‘Mockingjay — Part 2’. Below: Karl Glusman and Aomi Muyock in ‘Love’
The series’ vast global popularity may
well have been helped by the discreet
replacement of humour (too prone to
not travelling) with splashes of flamboy-
ance: the usual palette of murk and
sludge is brightened here by a Capitol
shopkeeper surgically remade to resem-
ble a tiger. The cast admire her
implanted whiskers as if they were a
new,reasonablypricedblusher.
Since the first, hyperactive film in
The Hunger Games: 2012, the series has had a regular direc-
Mockingjay — Part 2 tor in Francis Lawrence. It’s hard not to
(12A) wonder what might have been in the
Francis Lawrence hands of a war movie virtuoso such as
AAAAE Kathryn Bigelow, but sturdy compe-
tence is no crime. A set-piece in which
Love (18) Katniss is pursued by a monster wave of
Gaspar Noé oil has the raw thrill of good action cin-
AAAAE ema and enough metaphorical oomph to
keep the theorists busy for years. In the
Güeros (15) end, for all the high-end support of the
Alonso Ruizpalacios late Philip Seymour Hoffman and the
AAAAE flawless Donald Sutherland, these
strange, important films belong to Jenni-
The Dressmaker (12A) fer Lawrence: unsmiling, unbreaking,
Jocelyn Moorhouse JoanofArcfortheSnapchatgeneration.
AAAEE In a different era, Sutherland was part
of the elaborate tease of Don’t Look Now,
his famous sex scene with screen wife
Julie Christie inspiring endless debate as
to whether or not that was actually act-
ing. No such mystery in Love, the new
film from director Gaspar Noé. We open
with a long tableau of mutual masturba-
tion, the first of several clearly unfaked
couplings. Ah yes, you often think, that
would have to be real. Yet even the most
single-minded viewer will ultimately
find the sex less compelling than the
messthathappensinbetween.
After that first encounter, we find our-
selves in a cold shower of Parisian
domesticity, the bleary Murphy (Karl
Glusman) waking to his partner, infant
son and a mood of glum self-loathing. It
isNewYear’sDay.
But we’re not yet destined for kitchen
sink realism. Soon, Murphy seeks refuge
in his memories: the key, Noé-ishly, a
lump of opium kept in a VHS case for
I Stand Alone, the director’s own scabrous
debut. So begins a reverie of an earlier
life, and another girl, a guarded brunette
namedElectra(AomiMuyock).
She, we realise, was the One, since
got away. At first the sweetness is irre-
sistible. “We’re going to be the greatest
couple in the world,” he declares. Soon,
though, Murphy reveals himself as a
ruinous dolt, and things begin to spoil:
“Secrets make you darker,” Electra
warns, as amid a string of lurid sexual
adventures, jealousy and paranoia scut-
tletherelationship.
Noé’s liking for mischief dies hard:
Love does, for instance, feature some
potent use of 3D (I will only say you may
instinctively duck). But his eye for the
gorgeous extends to more than just flesh:
a great arranger of actors, he finds Mur-
phy and Electra at their most blissed-out
fully dressed and drinking tea against a
hyper-real trompe-l’oeil of white lake-
house and pink flamingos. And he has a
novelist’s knack for playing with
time. Just as his last film Enter
the Void saw its hero stuck in
the afterlife watching his own
story replayed, so Mur-
phy too is doomed to
be both here and
there, present
and past, get-
ting ever
darker
until we
is derisive slang), Federico darker, and
that difference, with all its implications,
poundsawayattheheartofthemovie.
“I’m back, you bastards,” announces
Myrtle “Tilly” Dunnage (Kate Winslet)
at the start of The Dressmaker, these
particular bastards the citizens of Aus-
tralian Outback hellhole Dungatar circa
1951, a two-horse town where both
horses have died. But it’s Dungatar to
which she returns, a femme fatale-ish
seamstress in eye-popping couture. Half
the premise — Tilly making over the
town’s dowdy women with her trusty
Singer sewing machine — would be
insufferably twee if it weren’t for the
other half. As a fatherless child, she was
bullied by the whole town and blamed
for the violent death of a schoolmate.
(She too thinks she might be guilty.) And
nowshewantsrevenge.
So pass the first five minutes. Stick
with it and you will encounter the many
rural grotesques, the rival dressmaker,
the local hunk, the box of hash brownies,
the wife-beater’s comeuppance, the
poignant romance, the tragic demise in a
vat of sorghum, the am-dram produc-
tion of The Mikado, and the
unfathomable quantity of lavish
frocks. If all this sounds tonally
deranged,indeeditis,lurching
from low farce to teary
melodrama, then standing
on its head and barking.
I actually think I
enjoyed it, though I
now feel so confused I
mightbewrong.

THIS EVENING’S TELEVISION

Pick of the day

The excellent, unsensational
Unreported World (C4
7.30pm) comes up with
another disturbing comment
on social abuses tonight.
Hundreds of South Koreans,
many with learning
difficulties, frequently
homeless, are lured away to
work as unpaid and often
violently mistreated
labourers. Police make
regular inspections but the
farm-owners hide their
workers. The programme
states the facts and offers
no easy solutions.
(Pictured: victims Chung
Gie-hong and Chung
Byung-ae.)
Badlands (BBC2 11.35pm)
takes conventional themes
— teenagers on the run,
violence, the American
landscape — and treats
them with a lyricism and a
mixture of the epic and the
elegiac typical of Terrence
Malick’s direction.
Beautifully acted by Martin
Sheen and Sissy Spacek.
MARTIN HOYLE

BBC 1 BBC 2 ITV London Channel 4

6.00 BBC News at Six; Weather.
6.30 BBC Regional News
Programmes.
7.00 The One Show.
7.30 Citizen Khan. Shazia and
Amjad find it hard to cope
as their baby is struggling
to sleep during the night.
8.00 EastEnders.
8.30 Adele at the BBC. The
singer-songwriter talks
about life and career.
9.35 Have I Got News for You.
10.05 BBC News.
10.30 BBC Regional News and
Weather.
10.40 The Graham Norton Show.
Tom Hanks talks about his
role in the new Spielberg
thriller Bridge of Spies.
11.25 Josh. New series. Sitcom
following Josh, his
flatmates and their
landlord. In the first
edition, Josh is invited to a
pool party. Starring Josh
Widdicombe. Previously
shown on BBC Three.
11.55 Josh.
6.00 Strictly Come Dancing —
It Takes Two.
7.00 Celebrity Antiques Road
Trip. Tommy Cannon and
Bobby Ball hit the antiques
trail.
8.00 Mastermind. John
Humphrys poses questions
on specialist subjects.
8.30 An Island Parish:
Falklands. Reverend
Richard lends a hand in
preparing the hot cross
buns.
9.00 Great Continental Railway
Journeys.
10.00 QI. Host Stephen Fry is
joined by Sandi Toksvig and
Alan Davies.
10.30 Newsnight.
11.00 Artsnight — Edmund de
Waal. The artist explores
the theme of memory and
art.
11.30 Weather.
11.35 FILM Badlands. Terrence
Malick’s crime drama, with
Martin Sheen and Sissy
Spacek.
6.00 ITV News London.
6.30 ITV Evening News.
7.00 Emmerdale.
7.30 Coronation Street.
8.00 Gino’s Italian Escape —
Islands in the Sun. Chef
Gino D’Acampo heads into
the mountains of Sardinia
to see how simple food
and the landscape
contribute to the health
and longevity of the
people living there.
8.30 Coronation Street.
9.00 I’m a Celebrity Get Me
Out of Here! Ant and Dec
present the celebrity
challenge as the famous
faces continue their ordeal
in the Australian jungle.
10.30 ITV News.
11.00 ITV News London.
11.15 FILM The Eiger Sanction.
Action adventure, directed
by and starring Clint
Eastwood. With George
Kennedy.
Regional variations apply
6.00 The Simpsons. R
6.30 Hollyoaks.
7.00 Channel 4 News.
7.30 Unreported World.
Reporter Marcel Theroux
visits South Korea to
investigate the growing
scandal of modern-day
slavery, involving many
victims with learning
disabilities.
8.00 TFI Friday. Chris Evans
hosts the lively
entertainment show mixing
music and chat with stunts
and skits, with guests
including Stereophonics
and Hozier.
9.00 Gogglebox.
10.00 Alan Carr: Chatty Man.
Danny Dyer talks about his
book The World According
to Danny Dyer: Life
Lessons from the East End,
while Josh Widdicombe
discusses his BBC sitcom.
Rita Ora drops in for a
chat.
11.05 First Dates. R

BBC3
7.00 Top Gear. 8.00 Don’t Tell
the Bride. 9.00 Russell Howard’s
Good News. 9.30 Rent a Cop.
10.00 EastEnders. 10.30 Russell
Howard’s Good News Extra. 11.15
Family Guy. 11.40 Family Guy.
BBC4
7.00 World News Today. 7.30
Pappano’s Classical Voices.
8.30 Pappano’s Classical Voices.
9.30 Mercury Prize Live 2015.
10.30 Mercury Prize Winners at
the BBC. 11.35 Totally British: 70s
Rock ’n’ Roll.
Other channels
Channel 5
6.00 Home and Away. 6.30 5
News Tonight. 7.00 UK’s
Strongest Man 2015. 8.00 Ice
Road Truckers. 9.00 NCIS: New
Orleans. 10.00 NCIS. 10.55 NCIS:
Los Angeles. 11.55 Access.
More4
6.50 Great Canal Journeys. 7.55
Grand Designs. 9.00 24 Hours in
A&E. 10.00 The Returned. 11.15
Father Ted. 11.50 Father Ted.
Film4
7.00 Run Fat Boy Run. 9.00
Battleship. 11.35 End of Days.
Sky Atlantic
6.00 Without a Trace. 7.00
Cold Case. 8.00 Blue Bloods.
9.00 Blue Bloods. 10.00 The
Last Panthers. 11.00 The
Wire.
Sky Sports 1
6.00 The Fantasy Football
Club. 7.00 FL72 Live. 10.15
Fight Night Preview. 10.45 The
Fantasy Football Club. 11.45
Barclays Premier League
Preview.
Sky 1
6.00 Futurama. 6.30 The
Simpsons. 7.00 The Simpsons.
7.30 The Simpsons. 8.00
Gordonstoun: A Different Class.
9.00 A League of Their Own.
10.00 Duck Quacks Don’t Echo.
11.00 Hawaii Five-0.
Sky Arts
6.00 Darbar Festival 2015. 7.00
Landscape Artist of the Year.
8.00 Discovering: Groucho Marx.
9.00 Sky Arts Sessions. 10.00
Hard. 10.30 Hard. 11.10 AC/DC’s
Brian Johnson: Rock Icon.
14 ★ FINANCIAL TIMES Friday 20 November 2015

Odd one out

Tech IPOs in 2014 raised nearly as much as the 2000 peak, even though there
were far fewer offerings. Recent IPOs have been priced towards the lower end of
the suggested range. Square sold shares at $2 below its indicated price range

Global technology initial public offerings Selected tech IPOs

Twitter: @FTLex Email: lex@ft.com
Funds raised in IPO ($bn) Number of IPOs IPO price IPO price range Current share price**
60 800 IPO date Company $10 $15 $20 $25 $30
Royal Mail: and a regulatory review next year may Italian banks:
turn out to be less onerous than Nov 2015 Square
lepidopteral leanings expected. Even so, a transformed Royal 600
productivity gap
Mail is unlikely to be a butterfly. A Nov 2015 Match Group
Some companies talk about moth — functional and largely 40 Italian banking can be contradictory. In
restructuring or reorganising. The nocturnal — might be a better analogy. Oct 2015 Pure Storage his latest restructuring, UniCredit boss
UK’s Royal Mail talks about 400 Federico Ghizzoni aims to shrink the
“transformation”. The word implies a Jun 2015 Fitbit country’s second-biggest lender by
process of complete reinvention, at the Lonmin: market value — by cutting 12,000 jobs
end of which a beautiful corporate 20 Apr 2015 Etsy and selling assets. Meanwhile Italy’s
creature will emerge, butterfly-like, stay of execution 200 popolari banks are abuzz with merger
from the husk of state ownership. Jan 2015 Box talk as these smaller banks shake off
The reality is rather more prosaic. Ouch. And ouch. Investors in Lonmin their mutual pasts and try to bulk up.
Transformation, Royal Mail-style, is a need a thick skin and a very, very Jun 2014 GoPro Big or small, the banks have the same
long, expensive slog. The UK delivery long-term horizon. They have just 0 0 aim: to cut costs, capture more revenue
group, now wholly privatised after the approved the South African platinum 1995 98 2000 02 04 06 08 10 12 15* and use profits to build capital.
government sold its remaining shares miner’s third rights issue in six years, That is just what regulators want too.
FT graphic Sources: Dealogic, FT research * Year to date ** As of 4.30pm GMT
last month, will rack up at least £180m this one at a 94 per cent discount to the Trouble is, it will lumber investors with
in transformation costs this year. Much share price. The cash call will raise feeble returns as long as interest rates
of that will be incurred in a round of $470m and will open the door to a It is all over. Tech bubble 2.0 has busy at Twitter. It has cool-looking private valuations. Institutional stay low. Italian bank returns on equity
voluntary redundancies (3,000 out of a $370m debt refinancing. Without it, burst. Square priced its initial public hardware and software. And it has all investors say they would rather wait are already pathetic; most, bar Intesa
total workforce of 148,000 left in the Lonmin would have run out of cash. offering below the range, at only $9 the financial features of a “unicorn” to see how a stock performs than Sanpaolo’s, are below 6 per cent and all
first half). Operating costs in the core Yesterday’s supportive vote from compared with a proposed $11-$13. (the name given to hyped private start- take a hefty allocation upfront. That but Intesa trade at a discount to net
business will fall by at least 1 per cent long-suffering shareholders will keep it Not even Goldman Sachs could sell ups), with a private valuation of $6bn was evident in the Square IPO. But tangible book value as a result. Some
this year — news cheered with a 5 per going for a couple more years. this thing. Call in the removal trucks. and a public one of $3.2bn at pricing. Match, the online dating company, banks are counting on fee income,
cent pop in the share price. Lonmin’s bind is obvious from the San Francisco is done. But despite appearances, Square is a which also priced on Wednesday, did increasingly from asset management,
On top of that comes another £440m issue’s extreme discount — and from Yes, Square popped to $13 in lossmaking financial services company, so in its indicated range. Pure to offset low interest income. Lower
of investment in automation and IT the company’s willingness to pay early trading. But that is still down with an unsexy niche in the payments Storage, the flash memory company, bad loan charges will help. But cost
that will support services such as same- almost 10 per cent of the proceeds in from its last private fundraising at infrastructure. It does other stuff too — last month priced above its last cuts are the main way to lift returns.
day delivery and a better system to fees to advisers and financiers. The $15.46 and considerably lower than it has a food delivery app, for example private round, in the middle of its Again, early mover Intesa has shown
allow people to return unwanted miner should refresh its board: a the guarantee of $18.56 that late — but 94 per cent of revenues comes indicated range, and has since traded the way. Its cost-to-income ratio of
products to e-retailers. All this carries couple of members predate the last investors extracted. They were from Square’s role as a “merchant higher. 46 per cent at end-September was one
execution risk; just ask UK Mail, a ($817m) cash call; one was there even compensated with a lot of extra aggregator”. It collates the transactions Uber, Dropbox, Snapchat and the of the lowest of Europe’s big banks. But
competitor that on Wednesday blamed before the previous one. Lonmin has at shares in the IPO. of 2m sellers and stands between them other richly priced private tech its ROE is still only 6 per cent. That is
the botched commissioning of a new least wielded its axe more decisively A faint glimmer of hope: perhaps and the card networks. It is not so companies must hope that Square partly the result of its capital strength.
parcels hub for a profit warning. elsewhere. It has cut its workforce and Square is not a tech company at all. It much disintermediating and disrupting was perceived differently because it Its Basel III common equity tier one
Assume that Royal Mail manages curbed capital outlay by closing certainly quacks like a duck. It has as adding another layer. is not offering the same prospects for ratio of 13.4 per cent — to UniCredit’s
such challenges better, as it has done so high-cost shafts or putting them on Jack Dorsey as founder and chief Tech IPOs this year have been innovation-led growth. Then the 10.5 — is high by European standards.
far. Its prize is a leading position in a care and maintenance. executive — at least, when he is not mediocre and there is scepticism about party can continue. The regulator still takes all.
market so brutally competitive that it But its newfound wiggle room will be The problem for Italian banks, with
borders on the irrational. Royal Mail’s short lived. On top of risks beyond its their high branch and staff numbers, is
growth engine is parcels, yet in the first control — such as South Africa’s lousy productivity. Staff at Intesa
half revenues there inched up just 1 per uncertain power supply and pricing, demand. If this rights issue does not do refining hit earnings, as did partial converters they need cost five times contributed more than €29,800 each to
cent, less than the 4 per cent gain in changeable mining regulation, poor the trick, Lonmin will become a white exposure both to oil and to Chinese the petrol equivalent. Should car nine-month earnings — more than
volumes. Even before “transformation productivity and unpredictable labour elephant. industrial spirits — China has no buyers reject diesel en masse, Johnson double the output of their UniCredit
costs” the company’s first-half relations — Lonmin will slide back into immediate need for more Matthey would be badly exposed. But counterparts and four times that of
operating margins were static. Things its familiar pattern of debt in no time. petrochemical plants. On the plus side, there are rosier possibilities, according staff at Banca Popolare dell’Emilia
are unlikely to get better any time Net debt at end-October was $284m, Johnson Matthey: the company yesterday announced a to analysts at Liberum. A planned shift Romagna. One way to boost output
soon; Amazon’s decision to launch its leaving $85m in net cash from the larger than expected special dividend, of testing from the laboratory to the might be consolidation: combining UBI
own UK delivery network is expected rights issue plus the refinanced bank catalysing growth and better control over its working road is a de facto tightening of Banca and Banca Popolare di Milano,
to limit volume growth for other facilities. Assume the platinum price capital. The reward was a 9 per cent standards. So is the next phase of say, could save about 30 per cent of the
delivery companies to a measly 1-2 per stays put, earnings stay flat and the Diesel engines emit poison: everyone bump in the shares, which now trade at European regulation, which requires latter’s cost base, notes Berenberg.
cent a year, and there is already spare miner sticks to planned capital now knows this, thanks in part to 15 times earnings. cleaner emissions from petrol too. Such deal speculation has already
capacity. Some players in the market spending of $430m in the next three industrial-level mendacity about what This is still down a quarter since Together these boost demand for the been priced into many banks’ share
will withdraw or fail, especially once years. Add all that together, and it Volkswagen cars spew out. Bad for June, and cheap on a historic basis. company’s pricier kit. prices. That is a pity, since it also
they are forced to raise wages (to the could be back into debt in a year. anyone supplying parts for such Here they will remain without more As converters become costlier, means that improvements in returns
so-called living wage). Lonmin claims it will break even at the engines. But what if those parts are the solid growth prospects. For those, buyers might shift to hybrid or electric have in effect been rewarded before
Royal Mail will not be one of them; it cash flow level by the end of next year ones that strip poison from the fumes? Johnson Matthey must look towards its cars. Johnson Matthey has a battery they have been achieved.
is big, its finances are in decent shape, (after capex). That is a question for anyone emissions control division, responsible materials business, an admission of the
it has the advantages of incumbency, Yet it is hard to avoid the impression pondering Johnson Matthey, leading for two-thirds of sales and half of need to spread its automobile bets. It is
brand recognition and access to the that, for all the conservatism of its manufacturer of catalytic converters. profits. Here, the VW scandal adds to currently just 5 per cent of sales. For Lex on the web
For notes on today’s breaking
Post Office’s high-street network. It is plan, survival still hinges on rivals Its outlook has been smoggy. An exit an already complex story. Because now, to become more of a growth story stories go to www.ft.com/lex
sitting on some valuable real estate, cutting production and a pick-up in from profitable but non-core gold- diesel engines are so dirty, the Johnson Matthey still needs diesel.

Forecasts by
41 1020
1010 3
2 990
LOW 1
L 5
1000
4
Luxembourg Rain 10 50
26 O Lyon Shower 18 64
6 6 Madrid Sun 20 68
8 1 10
9 8 Manchester Shower 8 46
10 Miami Thunder 28 82
7 25 1020 8 15 Milan Cloudy 13 55
8 Montreal Sun 8 46
14
9 16 Moscow Rain 5 41
9 9 17 Mumbai Sun 34 93
9 3 Munich Shower 14 57
10 14
1 30 New York Sun 14 57
1030 Nice Sun 20 68
10 9 20 9 I H Paris Shower 14 57
22
23 Prague Rain 8 46
22 1020 Reykjavik Snow 0 32
23
Rio Thunder 36 97
Wind speed in MPH at 12 GMT 5 HIGH Rome Cloudy 19 66
Temperatures max for day˚C Wind speeds in PH 23 San Francisco Sun 18 64
Stockholm Fair 1 34
Today’s temperatures Strasbourg Shower 14 57
Abu Dhabi Sun 30 86 Belgrade Sun 18 64 Copenhagen Shower 7 45 Hamburg Shower 9 48 Sydney Sun 42 108
Amsterdam Shower 10 50 Berlin Shower 10 50 Delhi Sun 27 81 Helsinki Sleet 3 37 Tokyo Drizzle 16 61
Athens Sun 21 68 Brussels Rain 10 50 Dubai Sun 30 86 Hong Kong Shower 28 82 Toronto Fair 7 45
B’ham Fair 9 48 Budapest Cloudy 13 55 Dublin Hail 6 43 Istanbul Sun 18 64 Vancouver Fair 7 45
Bangkok Fair 35 95 Buenos Aires Sun 21 70 Edinburgh Sleet 6 43 Jersey Rain 13 55 Vienna Shower 12 54
Barcelona Sun 21 70 Cardiff Fair 10 50 Frankfurt Rain 11 52 Lisbon Fair 19 66 Warsaw Shower 9 48
Beijing Cloudy 4 39 Chicago Fair 7 45 Geneva Shower 17 63 London Fair 10 50 Washington Sun 14 57
Belfast Sleet 6 43 Cologne Rain 9 48 Glasgow Sleet 6 43 Los Angeles Sun 25 77 Zurich Shower 16 61

CROSSWORD ACROSS
1 Fully 26 see cheap computer’s
4 One who gets up from chair is
erotic (5)
No. 15,093 Set by WANDERER content that anyone can read? (8) 6, 17 Pretends not to be interested in
        5 Culmination of a bit of play obscure dramas? (5,4,2,3)
including own goal (6) 7 Cor anglais’s third piece broadcast
 10 Stone age tools working the soil (7) (3)
11 Asses working a long time need 8 Guarantee no right to come next
 
odd bits of rest (7) (5)
12, 13 Area once under the British 9 Being governed by one’s own in-
flag, taken by France in her broken law (4,4)
   English, say (5,4,5) 14 Early article by magazine editor?
15 Scot elected as PM, once (5) (5,2,4)
16 Relative has hard time getting drug 16 Racing car taking 7 26, say, and
  
after a month – admitted by 7 26? Queen around Silverstone (8)
(8) 17 See 6
 19 Sporting footwear with diamonds 18 Either half of two-thirds of nearly
takes off (3,5) inactive substance (5,3)
  21 Little fish for Jack, the picky eater
20 Russian composer loses address
for US male sculptor (5) (5)
21, 23 Be a guarantor in respect of 22 See 3
    Wrong Trousers Day? FT? Not at 24 Religious leader raging briefly
first (5,6,3) about bishop (5)
25 Make good theatre at city church 26 Number one vegetable, we hear (3)
  
(7)
27 German repeatedly into living as
mendicant (7) Solution 15,092
28 Develop the ability to chew 14,
  ) 2 5 7 + ( & + 2 3 5 ( 6 7
thanks initially to 18 (6) 9 $ 6 $ , $ $
29 Sluggish as shopper that’s no & (

















JOTTER PAD





CROSSWORD
No. 14,845 Set by NEO

























ACROSS
1 Important Viking one among best
friends (5,4)
6 Socialite with appeal makes left-
side entry (5)
9 Brazilian city as far as we’re
concerned ungovernable (7)
10 Obscure English knight against
European rebuffed (7)
11 Poor nation’s little island in hot
current (5)
12 Caught flamboyant cardinal in
Seventh Heaven? (5,4)
14 Notice flock encircles houses (3)
15 Alarmist financier reversed into
second vehicle bearing right (11)
17 German poet’s the writer
embracing pub vocalist (11)
19 Moggy fur with hole concealed? (3
20 Earl, King and Queen on
Hampshire river’s banks (9)
22 Ambassador in temple finds grain
(5)
24 Ardent Green must change leader
(7)
26 As one’s despicably mean, small
tips for servants materialise (2,5)
27 Sauce unfortunately knocked over
contains sulphur (5)
28 Related martial artist stops at
Bedouin residence (9)
Solution to Saturday’s prize pu
Solution to yesterday’s prize pu
Winners’ names will be printed

1 7 & 2 9 ( 5 * , 5 / 6
jogger? (8) 5 ( $ ( $ 1 7
6 7 , 5 8 3 $ 5 7 , 6 7 , &
JOTTER PAD DOWN
2
6 3
$ 6
2 5 $ ' , &
( 7 5
2 0 ( 1
1 First showing by PM before start ( ( 5 * 5
: $ 1 ' ( 1 2 5 0 , 7 <
of election (8) & + 6 : / :
2 Lamb taco is served with cold dish + $ 7 ( 0 $ , / * 8 7 7 ( 5
of veal and ham (11) ' $ 7 2 2 + (
7 ( 1 ' ( 5 ) 2 2 7 < ( 7 ,
3, 22 To go viral badly, there’s chance 0 ( $ 6 + 0 (
hot date’s gone wrong (5,4,5) : ( ( ' 3 , ( ' $ 7 ( 5 5 (
Friday 20 November 2015 ★ 15

CNOOC Mitsui IBM IHG Xetra Dax Gold Euro/dollar Brent oil
City Insider Sino-British ties Chemicals
under strain at Wentworth 2.46% 1.39% 1.16% 1.5% 1.1% $10 0.7% 0.1%
HARRIET AGNEW, PAGE 20
HK$8.33 Y496 $137.4 2,502p 11,085 $1,081 $1.0732 $44.12

Rolls-Royce Forsaken land Investors ditch Poundland shares

after fall in profit and warning of volatile trading
Short
View
pressed to give James
Mackintosh
US activist As the Federal Reserve at long last appears ready to
remove the zero interest rate honeypot, bears are growling

board seat
that the US is moving into the final phase of its credit cycle.
If they are right, investors should be paying attention.
There are five reasons to worry. First, corporate profits
have turned down, and analysts have been cutting their
forecasts of future profits. The fall so far has been only
small, but it stands in stark contrast to the double-digit
rises that Wall Street usually hopes for.
Push for shift of strategy as ValueAct Second, sales are not helping. US companies have seen
revenue go nowhere amid the slow growth of the past few
reveals it has doubled its stake to 10% years. Data on manufacturing and trade collected by the
Census Bureau show sales in those areas have been falling
at a speed only seen since 1992 during recessions.
PEGGY HOLLINGER, DAVID OAKLEY AND core aerospace engine business. “I Third, credit markets are growing twitchy. The spread
MARK ODELL — LONDON
STEPHEN FOLEY — NEW YORK
would say ValueAct is aligned with us in over government bonds demanded by junk bond investors
their investment approach,” another has risen sharply, hurt in particular by unwanted oil debt.
Top shareholders are calling on Rolls- investor said. “I would be happy to see The price of “leveraged loans” to private equity has fallen
Royce to bring US activist investor Val- them on the board. The group has a too; this week, the banks backing Carlyle’s purchase of
ueAct on to the board to help efforts to good track record and wants the same as data storage company Veritas shelved a $5.5bn offering of
revive the engineering group. other shareholders, which is better per- loans and junk after finding too little demand.
The San Francisco-based hedge fund formance from Rolls.” Fourth, America’s corporates (excluding the financial
revealed yesterday that it had doubled These views were echoed by several sector) have been exploiting cheap finance to a degree not
its stake in Rolls-Royce to 10 per cent, a big shareholders who expressed frustra- seen since the heyday of the last credit bubble in 2007. Bor-
move that is expected to heighten pres- tion with a board that has lacked indus- rowing to buy back shares or engage in megamergers is
sure on Warren East, chief executive, for trial expertise and failed to engage suc- back to pre-crisis levels, pushing up leverage — net debt
a change of strategy. cessfully with investors. “The need for compared to equity — back to where it stood in 2008.
The group has gone from profit warn- help is self-evident,” said one big share- Finally, default rates are picking up, with a tenth of US
ing to profit warning over the past two holder. energy junk bond issues defaulting in the past year (see
years, with the fifth last week. The stock But many said there was no immedi- chart). True, junk defaults hit very low levels of just 1.4 per
has fallen almost 50 per cent since the ate pressure for a change of chairman or cent last year, the lowest since 2007. But Standard & Poor’s
first warning in February last year. chief executive. “This is a relatively new predicts that they will reach 3.3 per cent by next autumn,
Rolls-Royce said it had received a management team,” one investor said. the highest since the recovery began.
request from ValueAct for a board seat “We would expect Warren East and the Against this, bulls can point out that the Fed remains
but no decision had been taken. “We are finance director to give leadership and dovish even as it prepares to raise rates. When the Fed
leaving the option open,” it said. “We tell us what steps they are taking and tightened in the mid-1980s and 1990s, junk bond defaults
need to understand who their nominee where they are going. This will take rose, but wider markets quickly recovered.
is, where they fit in and whether other time.” In 2004, higher rates coincided with both a bull market
shareholders would be happy with it.” Much of this detail is expected at and lower defaults. Mostly, bulls hope that higher rates will
Several top-20 shareholders said they Tuesday’s investor briefing, when Mr come in response to a stronger economy, so companies can
wanted more urgency at board level. East will give an update on the business grow out of their debt. Fingers crossed.
“We support ValueAct,” said one. review he has been conducting since
“They have similar values to ourselves. arriving in July. Stefan Wermuth/Reuters
US junk
They are medium to long-term inves- Mr East has so far resisted calls to Default rate
tors that want to create more value at divest the group’s marine engine unit, ALIYA RAM AND JOEL LEWIN deal for us”, and early results of for strong growth. Nick Bubb, Barclays High Yield %
Rolls . . . It is time to think seriously arguing that diversification is crucial to integration were “encourag- retail analyst at KPMG/Ipsos, Index spread
Poundland stock fell 20 per 20
about how the company can be turned offset its exposure to the cyclical aero- ing”. The group said it was opti- said investors “should be
cent after it revealed a hefty
round.” space market. He has vowed to acceler- mistic that it could crack the enthused by the bullish noises 15
drop in half-year profits and
The US fund, which is pushing for a ate cost cutting in an attempt to boost Spanish discount market after about the synergies from the
warned that trading in the
divestment of the group’s businesses profitability and cash generation. its trial store, in Torremolinos, 99p acquisition and the confi- 10
third quarter would be “vola-
outside aerospace, has been contacting ValueAct became Rolls-Royce’s larg- reported like-for-like sales dence in further store opening Default rates are
tile” as consumers change 5
Rolls-Royce’s top shareholders to est shareholder in July and has made a growth. potential”. picking up, with a
Christmas buying patterns in
explain its strategy. string of investments in some of the Darren Shirley, analyst at The company is looking at tenth of US energy
response to Black Friday 0
“We thought the things they were say- UK’s other engineering groups, includ- Shore Capital, said the UK dis- ways to cut costs, including junk bond issues
offers. 2000 05 10 15
ing were sensible,” a top-10 shareholder ing Smiths Group. It typically commits count market remained chal- switching to LED lighting in defaulting in the
said, though he stressed that he had not to holding its largest positions for sev- But Jim McCarthy, chief execu- lenging, but “the combination stores. Sources: Bloomberg; S&P past year
yet come to a view on whether Rolls- eral years, and pushes for substantial tive, said the acquisition of 99p of 99p and the potential from Lombard page 20
Royce should focus solely on its restructurings. Stores was “a transformational Spain” meant there was scope Report page 21 james.mackintosh@ft.com

Pfizer seeks to win over Washington

on Allergan amid tax inversion moves
FT REPORTERS would see Pfizer move its tax base to and cuts in research and development,
Europe, allowing the company to escape two of the people said, though he will
Pfizer is gearing up for battle in
US tax bills on more than $128bn of not lobby politicians directly.
Washington over concerns that a
profits earned overseas. Pfizer paid an Brent Saunders, Allergan chief execu-
potential $150bn deal to buy Dublin-
effective tax rate of roughly 26 per cent tive, has said large pharma companies
based Allergan would deprive the US
last year compared with Allergan’s rate should focus their resources on develop-
Treasury of billions of tax dollars, put
of less than 5 per cent. ing and marketing drugs, leaving drug
thousands of jobs at risk and erode the
Ofcom boost for Sky over If successful, a tie-up between Pfizer discovery to nimble biotech companies.
country’s science base.
fixed-price sales to BT and Allergan would be the biggest deal His words have stoked fears for their
The Obama administration is preparing in the healthcare sector and the largest jobs among some Pfizer scientists.
Sky has won a regulatory victory after this week to unveil measures to deter US tax inversion, paving the way for more With the groups engaged in friendly
Ofcom ruled it should no longer have companies from using takeovers to US companies to explore such deals. talks, analysts and investors have
to make its main sports channels relocate their domicile to low-tax juris- Pfizer has assembled a team of advis- warned that the main risk to a combina-
available to BT at a fixed price. Ofcom dictions, as Pfizer nears a deal with ers with political connections including tion of Pfizer and Allergan is a political
said it was removing the “wholesale Allergan to do just that. Though talks Eric Cantor, the Republican former push designed to frustrate the deal.
must-offer” obligation. It will be up to are continuing, the US group is prepar- House majority leader who is working at Reporting by James Fontanella-Khan,
BT and Sky to agree terms. ing to offer more than $380 a share, boutique advisory firm Moelis. He is David Crow, Barney Jopson and Arash
Report i PAGE 20 people close to the situation said. advising Pfizer on how to overcome Massoudi
A deal, structured as a tax inversion, fears that the deal would lead to lay-offs Cancer drug rights page 14

Companies / Sectors / People

Companies
AB InBev......................................................30
ABN Amro...................................................18
AOL..................................................................17
AbbVie...........................................................15
Air Liquide...................................................19
Air Products...............................................19
Airbus.........................................................4,19
Airgas.............................................................19
Aldermore...................................................29
Alibaba...........................................................19
Allergan....................................................15,16
Alpha Bank....................................................2
Alrosa..............................................................16
Amazon.........................................................14
Ant Financial..............................................16
Anthem...................................................16,29
AstraZeneca...............................................16
B&M..........................................................20,21
BAE Systems...............................................4
BHP Billiton................................................28
BMW................................................................17
BT....................................................................20
Baidu...............................................................16
Banca Popolare dell’Emilia
Romagna......................................................14
Banca Popolare di Milano..................14
Berkeley........................................................29
Boeing............................................................19
Bombardier..................................................19
Bovis Homes.............................................29
Bristol-Myers Squibb............................16
CMC Markets................................................1
Cellectis.........................................................16
Chemring ......................................................4
Citic Bank.....................................................16
Cobham...........................................................4
Commerzbank...........................................18
Credit Suisse..............................................18
Crystal Amber...........................................21
DPD.................................................................20
DX Group....................................................20
DZ Bank........................................................18
Daily Mail and General Trust...........21
Deutsche Bank..........................................18
Dropbox........................................................14
Egerton Capital........................................1,3
Embraer.........................................................19
Equity Release (Increments) Ltd...21
Facebook......................................................16
Fiat Chrysler...............................................17
First Utility .................................................21
Freeport Indonesia.................................19
Freeport-McMoRan................................19
G4S..................................................................29
General Motors.........................................17
Glencore.......................................................28
Goldman Sachs........................................28
Google............................................................16
Grainger.........................................................21
HBOS...........................................................1,10
Halifax Bank of Scotland .................20
Heitman.........................................................21
Hermes.........................................................20
Home Depot..............................................29
Idemitsu Kosan.........................................16
Independent Energy..............................21
Intesa Sanpaolo........................................14
JPMorgan Chase.....................................28
JX Holdings................................................16
Johnson Matthey..............................14,29
Johnston Press.........................................21
Juno Therapeutics..................................16
Kite Pharma................................................16
Levi Strauss................................................12
Lloyds Banking Group......................2,18
Local World.................................................21
Lonmin.....................................................14,21
Lucara Diamond.......................................16
Lyft...................................................................18
Macy’s............................................................29
Marriott International..........................20
Match.......................................................14,29
Meggitt............................................................4
Merck..............................................................16
Millennial Media.......................................17
Moelis..............................................................15
Morgan Stanley.......................................28
Mothercare.................................................20
Nordstrom...................................................29
Novartis.........................................................16
Ocado..............................................................21
Ophir Energy.............................................29
Ovo Energy.................................................21
Paragon........................................................29
Persimmon..................................................29
Pfizer..........................................................15,16
Poundland.................................15,20,21,29
Pure Storage..............................................14
Rentrak..........................................................17
Rio Tinto......................................................28
Roche..............................................................16
Rolls-Royce..............................................4,15
Royal Bank of Scotland...................2,18
Royal Mail.............................................14,20
SABMiller.....................................................30
Servier............................................................16
Shire.................................................................15
Showa Shell................................................16
Skipton Building Society.......................2
Sky...................................................................20
Smiths Group.............................................15
Snapchat.................................................14,18
Spark Energy.............................................21
Square....................................14,16,18,28,29
Standard Chartered...............................18
Starboard Value.......................................19
Starbucks......................................................12
Starwood.....................................................20
TalkTalk........................................................20
Tencent..........................................................16
Terra Firma................................................20
TonenGeneral............................................16
Trinity Mirror..............................................21
Twitter................................................14,16,28
UBI Banca....................................................14
UK Mail...................................................14,20
Uber......................................................14,16,18
UniCredit......................................................14
UnitedHealth..............................................16
Valeant..........................................................29
ValueAct........................................................15
Verizon...........................................................19
Virgin Money.............................................29
Vodafone......................................................28
Volkswagen ..........................................14,17
WGZ Bank....................................................18
WeBank..........................................................16
Winton Capital Management..........1,3
Yahoo..............................................................19
YouView.......................................................20
Sectors
Aerospace & Defence.......................4,15
Banks.......................................10,14,16,18,28
Chemicals.....................................................19
Energy............................................................21
Food & Beverage...................................30
Industrials...................................................30
Media....................................................2,20,21
Mining.................................................14,16,21
Oil & Gas......................................................16
Property..........................................................5
Support Services.....................................14
Technology.........................................2,14,18
Telecoms.................................................17,28
Transport......................................................19
People
Armitage, John.........................................1,3
Armstrong, Tim........................................17
Beamish, Brian..........................................21
Bertling, Lutz.............................................19
Böhnke, Werner........................................18
Crosby, James..............................................1
Cruddas, Peter..........................................1,3
Diess, Herbert............................................17
Dorsey, Jack...............................................28
Dorsey , Jack.............................................14
East, Warren...............................................15
Fitzpatrick, Stephen...............................21
Ghizzoni, Federico..................................14
Gordon, Helen...........................................21
Greene, Moya............................................20
Harding, David.........................................1,3
Hemsley, Stephen...................................16
Hornby, Andy...............................................1
Kirsch, Wolfgang......................................18
Lamb, William............................................16
Marriott, Bill...............................................20
McCaig, Ian..................................................21
McCausland, Peter..................................19
Mercedes Corrales, Maria...................12
Michael Hintze, Sir....................................1
Newton-Jones, Mark............................20
Potier, Benoît.............................................19
Saunders, Brent........................................15
Sorenson, Arne........................................20
Thiam, Tidjane..........................................18
Wol, Hans-Bernd......................................18
Zimmer, John.............................................18

© The Financial Times Limited 2015 Week 47

16 ★ FINANCIAL TIMES Friday 20 November 2015

COMPANIES
INSIDE BUSINESS
Insurance
TECHNOLOGY

UnitedHealth threat to quit Obamacare Richard

Insurer to review whether
to abandon scheme as it
struggles to make a profit
DAVID CROW AND ADAM SAMSON
NEW YORK
BARNEY JOPSON — WASHINGTON
UnitedHealth, the largest US health
insurer, dealt a significant blow yester-
day to President Barack Obama’s signa-
ture policy by threatening to withdraw
people without cover has fallen to a
record low of 9 per cent, compared with
16 per cent five years ago, according to
the Centers for Disease Control and Pre-
vention.
However, UnitedHealth said it was
struggling to make a profit on the plans
it offered through the exchanges,
prompting it to scale back marketing of
the products and to start a review of
whether it should abandon the scheme
altogether. It said it would make a final
Waters
of whom have been without cover for That, in turn, could stop people from
years — are visiting the doctor and using signing up.
medical services more than previously
expected, analysts said.
Many of UnitedHealth’s rivals have
Mr Obama has hailed the Affordable
Care Act as a success and this month
announced that 17.6m Americans have
Square’s rough ride to
embarked on a round of big-ticket deal-
making to better prepare for a future
been covered with health insurance
since the law took effect, although it has
market is a lesson to
under the Affordable Healthcare Act,
although the company has been left on
the sidelines of industry consolidation.
been politically divisive.
In the summer, the US Supreme Court
handed Mr Obama a victory, upholding
rival tech start-ups
Although UnitedHealth is the largest a core component of his still-controver-
health insurer, it offers fewer plans sial overhaul of the nation’s healthcare

from insurance exchanges that have
helped to sharply reduce the number of
Americans without healthcare cover.
The introduction in 2010 of the
Affordable Care Act, dubbed
Obamacare, helped establish a network
of online exchanges that allowed unin-
sured Americans to purchase individual
healthcare plans.
As a consequence, the percentage of
Pharmaceuticals
decision on whether to withdraw in the
first half of next year.
Shares in UnitedHealth fell 5.7 per
cent in afternoon trade in New York.
Stephen Hemsley, UnitedHealth chief
executive, suggested the entire health
insurance industry was struggling to
make money from plans sold through
the exchanges.
Customers who buy the plans — many
Oil & gas
through the insurance exchange than
rivals such at Anthem, with about
550,000 people enrolled.
Analysts said UnitedHealth’s with-
drawal from the system could have a
knock-on effect because the exchanges
rely on a critical mass of insurers: if one
insurer walks away, it pushes up the
risks for other companies, who could
react by raising prices for consumers.
S
system and safeguarding insurance cov-
erage for more than 6m Americans.
If one insurer However, several cases related to the
law are still working their way through
walks away, the US legal system, including one
it pushes up regarding mandatory contraceptive
the risks coverage. The exchanges, many of
which are run by states, also got off to a
for other rocky start, with technical glitches caus-
companies ing some consumer headaches.
tock market investors have been getting whip-
lash this week trying to follow the twists and
turns in the technology industry’s most note-
worthy initial public offering of the year. With
most of the tech “unicorns” — private compa-
nies claiming valuations of at least $1bn — choosing to stay
private, they are not getting the pick of the herd. Even with
that caveat, the tortuous path that has brought payments
company Square to Wall Street takes some explaining.
In today’s inverted tech financing environment, public
and private markets are switching roles. It turns out that
they are not always suited to their new jobs. And in this
Alice-Through-the-Looking-Glass world, the lower an IPO
price, the more its early investors may be cheering.
Square has become the unfortunate test case for this

Pfizer secures somewhat weird time in the tech financing markets. The
first of the high-profile unicorns to go public, its IPO has
oscillated violently between success and failure in recent
US rights for days — capped by the sort of massive first-day bounce that
only Wall Street’s god of irony could have scripted.

cancer drug One indisputable fact: few people will emerge smelling
of roses from this mess, not least the underwriters who
slashed the issue price to $9, or $2 below the bottom of the
range they had said was likely only a week earlier. A
ANDREW WARD bounce of more than 50 per cent when trading opened yes-
PHARMACEUTICALS CORRESPONDENT
terday may prove shortlived, but it suggests that either the
Pfizer has stepped up its investment in underwriters got the psychological game that surrounds
a hotly tipped new cancer drug which any IPO pricing badly wrong, or they set the bar deliber-
recently made headlines for saving a ately low. Either way, Square left many millions of dollars
one-year-old British girl who was dying on the table. First-day spikes like this during the dotcom
from leukaemia. boom sowed considerable discord between Wall Street and
Silicon Valley, where entrepreneurs and start-up investors
Great Ormond Street Hospital in Lon- believed their ventures were being sold on the cheap.
don this month announced the first use One oddity of the Square IPO is that it looks like a com-
in humans of the product, which pany that would have been better suited to stay in the pri-
employs so-called gene editing to re-en- vate markets for longer. Forget, for a minute, the fact that
gineer immune cells to hunt and destroy it has only half a chief executive in Twitter boss Jack Dor-
cancer. Pfizer has secured exclusive sey. The even bigger issue for investors is Square’s unfin-
rights to commercialise the product in ished business model. Having once seen itself as a consum-
the US if it gains regulatory approval, er-facing payments company, it is trying to become a cloud
signalling the group’s desire to become a software and small business lending company. But it is too
force in the burgeoning field of cancer early in this attempted
immunotherapy. “pivot” for stock market
The product, known as UCART19, is investors to give it the bene-
Square looks like
being developed by a French biotech fit of the doubt. it would have
company called Cellectis. It is similar to This is an inversion of the
high-profile therapies from Novartis of normal role of public and
been better
Switzerland and Juno Therapeutics and private markets. Most uni- suited to staying
Kite Pharma of the US, which have corns — even those with
attracted hundreds of millions of dollars more developed business
private for longer
of investment in the past two years. models than Square — are
However, whereas these rival prod- still happy tapping private investors for cash. Ride-hailing
ucts — known as CAR-T therapies — apps Uber and Lyft are out looking for another $1.5bn
require each treatment to be engineered between them. But even here, there may be evidence of
from the patient’s own immune cells, growing investor wariness. A $70bn valuation has been
UCART19 uses donor cells that can be touted for Uber in its latest fundraising round, but there do
used by any patient. Cellectis believes not appear to be bidders at that price. When the darling of

Japanese oil refiners set for defensive mergers

this will make its “off-the-shelf” prod-
uct cheaper and easier to manufacture
and administer — a potentially impor-
tant advantage over the other CAR-T
therapies.
UCART19 is at a much earlier stage of
development than its rivals and clinical
trials will be needed to prove that the
apparently successful treatment of the
British toddler can be replicated safely
in other patients. However, the case has
raised optimism over its prospects.
Cellectis said yesterday that Servier, a
larger, privately held French drug-
maker, had exercised an option it had
previously acquired for global market-
ing rights for UCART19, and that Pfizer
had acquired US rights from Servier.
Under the deal, Servier will pay Cel-
lectis $38.2m upfront with a further
$300m subject to successful progress
through the research and development
process. The terms of Pfizer’s agreement
with Servier were not disclosed.
The Financial Times reported in May
that Pfizer was interested in buying Cel-
lectis but a deal failed to materialise.
The US company owns just under 10 per
cent of the French company after the
pair entered an alliance last year to
develop further cancer treatments.
LEO LEWIS — TOKYO
Ageing demographics, hybrid electric
engines and a dwindling passion for
cars among the under-40s are souring
Japan’s long love affair with petrol and
pushing the oil refining industry into a
pair of defensive mergers.
If completed, the two deals — one
announced and the other confirmed as
under discussion by people close to the
talks — would see about 85 per cent of
Japan’s refining capacity concentrated
in the hands of two companies.
The first sign of consolidation came
last week when Idemitsu Kosan and
Showa Shell, Japan’s second-largest and
fifth-largest refiners by sales,
announced they had reached a provi-
sional agreement to merge. Based on
their sales of last year, the combined
company would generate annual reve-
nue of $65bn.
Analysts at Mizuho Securities said
their initial impression of the deal — the
share-swap ratio for the all-stock
merger has not been finalised — was
that “the scale of the benefits cannot be
perceived as positive”.
Meanwhile, people familiar with the
situation confirmed on Tuesday that JX
Holdings and TonenGeneral, the largest
and third-largest refiners, were in
merger talks. JX said it was conducting
“various studies” in response to the
severe conditions in the industry. Tonen
said it was seeking “various options,
such as a tie-up with another company”.
Petrol prices in Japan are at the lowest
level since 2010 and, with increasing
numbers of young Japanese moving into
the cities and into the embrace of first-
class public transport, gasoline demand
is expected to settle into a protracted
annual decline of at least 1.5 per cent for
the next decade.
A duopoly of refiners, controlling
more than four-fifths of Japan’s petrol
supply, would fulfil a vision being
strongly advocated from behind the
scenes by Japan’s Ministry of Economy,
Trade and Industry. The ministry has
Power play: publicly identified refining overcapacity
a plant in as a blight on the sector.
Last year the ministry used newly-
Ichihara,
attained powers to undertake a survey
eastern Japan,
of the country’s 23 refineries in an effort
owned by
to work out where the biggest potential
Idemitsu Kosan,
for capacity cuts might lie.
which has
Average operating margins among
announced a
merger with Japan’s five largest refiners, say analysts,
Showa Shell have been running at 0.7 per cent of
Getty Images sales for the past few years. The govern-
ment is understood to be working on the
assumption that consolidation could
ultimately bring those margins closer to
2.3 per cent.
Thanh Ha Pham, an analyst at Jeffer-
ies, said the intervention of the Japanese
government was the “biggest factor” in
the appearance of the two possible
merger deals, with the ministry of econ-
omy eager to see the industry improve
its margins. The country’s population
was falling and the automobile market
was more fuel efficient, meaning that
demand decline was “structural and
undeniable”, he added.
the present generation of start-ups cannot hit the increas-
ingly lofty price points that are set for it, it does not bode
well for the others. All of this indicates that investor senti-
ment towards tech start-ups has turned since the stock
market volatility brought on by China’s economic slow-
down this summer. The convoluted financing arrange-
ments that companies such as Square have pursued in the
past add an extra, unpredictable twist. By guaranteeing
returns to late-stage investors, many have sent confusing
signals about their valuations, leaving it to Wall Street to
unscramble the mess.
Investors in Square’s final private fundraising round had
reason to cheer twice over the company’s travails. The offi-
cial IPO price was less half the $18.56 a share they had been
guaranteed from an IPO, forcing Square to hand over a
bundle of new shares to make up the difference. The day-
one bounce has now given them an extra shot in the arm.
The last laugh may well be Square’s. An IPO, after all, is a
necessary rite of passage that may provide few clues about
future business success. Google had to slash the price of the
shares in its IPO after a botched sale, before quickly
rebounding, while Facebook traced an opposite path —
pricing high before its stock price collapsed.
As they enjoy the schadenfreude of watching Square’s
stumble into the public markets, other tech start-ups
should pause and think about their own position. Most will
either fail or be acquired and never make it as far as Wall
Street. If they are really lucky, an IPO like this could hap-
pen to them someday as well.
richard.waters@ft.com

Mining Technology

Biggest diamond find in more than a century
ANDREW ENGLAND — JOHANNESBURG
JAMES WILSON — LONDON
A Canadian miner claims it has
unearthed the biggest diamond to be
found for more than a century, with the
discovery of a 1,111 carat gem-quality
stone in Botswana.
Lucara Diamond has released photo-
graphs of the stone, which was discov-
ered at its Karowe mine. It measures
65mm x 56mm x 40mm and pictures of
the clear-looking gem show it to be the
size of a small orange. Analysts said the
stone was difficult to value but should
be worth tens of millions of dollars.
Des Kilalea, an analyst at RBC Capital
Markets, said the stone would be worth
at least $35m, based on previous sales,
and possibly up to $50m. Another
industry professional estimated its
value at $70m to $80m. Lucara sold a
similar type of stone, weighing 342 car-
ats, for $20.55m in July.
To date, the largest diamond ever dis-
covered is the “Cullinan Diamond”,
which was dug out of a South African
mine in 1905. That 3,106 carat gem was
cut and set in Britain’s crown jewels.
William Lamb, chief executive of
Analysts said the stone should be
worth tens of millions of dollars
Lucara, said the Karowe diamond —
about twice the size of any stone sold
recently — also had “historical signifi-
cance” that could influence the value.
“I have been waking up at 4am every
night this week,” he said yesterday. “It is
an amazing feeling and a great position
to be in . . . this is the first stone of more
than 1,000 carats for 100 years.”
Lucara also announced finds of two
other white diamonds: an 813 carat
stone and a 374 carat stone. It said the
weights remained subject to change as
the stones have not yet been cleaned.
Lucara, one of the companies backed
by Lukas Lundin, a mining and oil
entrepreneur, is one of several mid-tier
miners to have geared their businesses
to finding lucrative large diamonds.
Analysts at Investec said the Lucara
find was “a balance sheet changing
development” for the company.
Tencent looks to raise $1bn for WeBank push
CHARLES CLOVER — BEIJING
Tencent, one of China’s largest internet
companies, is looking to beef up its new
banking affiliate by helping it raise
$1bn in new capital, according to
investors.
The bolstering of WeBank, which is 30
per cent owned by Tencent, is part of a
government-approved push by China’s
biggest internet conglomerates into
finance — an area dominated by state-
owned banks.
Beijing hopes the push will lead to a
rise in lending to small and medium-
sized companies, which have been
ignored by the state banking sector. The
fundraising for WeBank, which plans to
offer a range of financial products, is
expected to value the company at $5bn.
Tencent declined to comment on the
capital raising.
WeBank, launched in January, is one
of a number of similar internet banks
that have recently emerged in China.
Others include MYbank, which was
launched in June by Chinese ecom-
merce group Alibaba’s financial affiliate
Ant Financial, while this week search
engine Baidu announced it would
launch a bank in partnership with Citic
Bank.
Due to stringent regulations on the
internet finance sector, these banks are
still required to partner with a licensed
lender and act as middlemen, limiting
activities such as accepting deposits.
China’s banking regulator granted
bank licences to Tencent and Ant Finan-
cial as part of a pilot programme to pro-
mote private-sector banks. Such gov-
ernment support was highlighted by the
attendance of Li Keqiang, China’s pre-
mier, at WeBank’s launch ceremony.
China’s nine largest banks are all
state-owned and tailor their lending
towards large, state-owned groups.
WeBank’s first year in existence has
not gone smoothly — Cao Tong resigned
as bank president in September, and
Zheng Xinlin, the vice-president who
handled interbank business, also
recently resigned, the bank confirmed
this week.
Tencent and other internet compa-
nies plan to use troves of internet “big
data” to determine the creditworthiness
of customers who might otherwise not
have access to larger banks’ lending due
to lack of collateral.
The planned $1bn fundraising will
help WeBank expand its personal-loan
service called Weilidai — “a little loan”
in English — which allows users to bor-
row up to Rmb200,000 ($31,000) with-
out collateral.
Friday 20 November 2015
Volkswagen choked by cost and complexity
German group to cut expenses to help pay for emissions scandal — but analysts fear this may not go far enough
RICHARD MILNE
A steering wheel may seem like a simple
component for a car. But when you buy
a Volkswagen Golf, you currently have a
choice of 117 different steering wheels.
VW is now planning to cut that
number to 43 as the scandal-ridden Ger-
man carmaker looks at ways of saving
money and boosting profitability. Many
of the variations were just for slightly
different shades of grey or an extra but-
ton or two on the steering wheel, accord-
ing to managers.
The resulting potential for cost-cut-
ting has some analysts arguing that,
despite an emissions scandal that could
cost it tens of billions of euros, VW
shares could be a screaming purchase.
“Most investors think VW is currently
uninvestable,” says Max Warburton,
analyst at Bernstein Research. “But this
is the biggest cost reduction possibility
in the global auto sector. It is the only
company that did not cut costs in
2008-09.”
VW is likely to give a flavour of what it
has planned today when the carmaker’s
executives will discuss future invest-
ments with the supervisory board.
Herbert Diess, plucked from BMW
earlier this year to head the struggling
VW brand, has already said investments
will be cut by €1bn and an efficiency
programme designed to reduce costs by
€5bn a year by 2017 will be accelerated.
“We are turning over every stone in
the company and are examining all
planned investments. What is not abso-
lutely necessary will be cancelled or
postponed,” Mr Diess told the VW in-
house magazine Autogramm this week.
Investors in VW may feel a sense of
déjà vu. In both 1993 and 2005 the Ger-
man carmaker faced scandals and
almost non-existent profit margins due
to overspending in the good times.
Outsiders were hired — José Ignacio
López from General Motors in 1993,
Wolfgang Bernhard from Chrysler in
2005 — and costs were soon slashed,
restoring the VW brand to healthier
margins. The question now is whether
another outsider, Mr Diess, can perform
the trick again and overcome resistance
from VW’s powerful trade union and
works council.
Bernd Osterloh, the head of VW’s
works council, has already sounded a
warning shot, suggesting this month
that unilateral cost-cutting by manage-
ment would endanger “the social peace
and future of our company”.
Analysts think this suggests workers
are grasping that management may try
to use the emissions scandal to intensify
cost-cutting and reform, particularly at
the VW brand, which generates half of
group revenue. “This is a historic chance
for VW,” says Arndt Ellinghorst, analyst
at Evercore ISI. “The rhetoric from the
works council suggests they are really
alarmed that the management might
try to run the business and not [the
works council].”
An obvious focus for many industry
observers is jobs. VW makes roughly the
same number of cars as Toyota but with
almost twice the amount of workers.
Axing jobs is likely to prove tricky due to
the union, even if consultants believe
temporary workers could be at risk.
Still, there is plenty for VW to cut.
VW’s administrative expenses have
almost tripled since 2007 while labour
costs have more than doubled, rising far
faster than sales. The operating profit
margin at the VW brand is expected
next year to be 1.2 per cent, the lowest
since 2009, according to Bernstein.
Referring to the famously intense
boss of Fiat Chrysler, Mr Warburton
says: “If Sergio Marchionne ran
Volkswagen, it could make 15 per cent
margins by next Christmas.”
VW was aware of its cost problem
even before the diesel emissions scandal
Telecoms
TV ads to be ‘retargeted’ on to mobiles
SHANNON BOND — NEW YORK
The ads you see on television may soon
follow you into your smartphone apps.
Millennial Media, the mobile advertis-
ing network recently bought by AOL for
$238m, is partnering with Rentrak, the
video measurement company, to allow
advertisers to “retarget” through their
phones people who have seen a particu-
lar ad on TV.
The partnership comes as AOL, which
was itself acquired by Verizon in a
$4.4bn deal this year, is reorientating its
digital advertising business towards
mobile devices, where consumers are
spending increasing amounts of time.
AOL’s ability to drive more spending
through its advertising technology tools,
particularly video ads on mobile
devices, was a key driver of Verizon’s
interest in the company as the largest
Bumpy road
VW brand operating margin
Ferdinand
Piech
José Ignacio López
1990 92 94
Output lags peers
Cars produced per employee, 2014
0 5 10
Toyota
Renault
PSA Peugeot
Citroën
Fiat
BMW
Mercedes
VW group
Source: Bernstein
broke in September. Martin Win-
terkorn, its former chief executive,
started an efficiency programme that
current managers say will now be inten-
sified. Much of the work is about reduc-
ing complexity, as with the steering
wheels.
Endless examples abound. At the
moment VW manufactures two differ-
ent types of internal lighting — one for
left-hand drive cars, one for right. In the
future, it will just be one. The front seats
in the Golf will have 259 variations in the
future, instead of 341.
But VW is going further. Managers say
it will examine whether it needs so
many models across brands including
VW, Seat and Skoda, and multiple varia-
tions of each model, such as two or five-
door cars, estates and convertibles.
Mr Ellinghorst says this is VW’s big-
gest short-term opportunity. “They
need to reduce the degree of freedom of
engineers,” he says, pointing to how
endless vehicle variations and new tech-
117 43
Number of That choice will
steering wheels be more than
VW Golf buyers halved under
can choose from cost-cutting plans
US wireless operator searches for new
sources of growth. Tim Armstrong, AOL
chief executive, has said that “this is the
year when TV and web budgets are
going to collide”.
US mobile advertising revenues in the
first half of this year reached $8.2bn,
accounting for 30 per cent of overall dig-
ital ad spending. In 2014, online ad
spend reached $49.5bn, compared with
combined broadcast and cable ad reve-
nues of $65.7bn.
Millennial Media says its new offering
will help accelerate big brands’ spend-
ing in mobile and measure the results of
that investment. “Advertisers want to
integrate all of their spending across
screens,” said Liza Blumenthal, head of
north-east sales for Millennial Media.
The partnership uses Rentrak data
from set-top boxes to track which com-
mercials a viewer sees while watching
★ FINANCIAL TIMES 17
COMPANIES
At the wheel
Persistent chief faces
tricky turnround test
(%)
Herbert Diess is, in the words of
analyst Arndt Ellinghorst,
“unpleasant, but in a good way”.
The former BMW executive was
one of the candidates to head the
6 luxury carmaker but was poached
by Volkswagen last year to run its
main but struggling VW brand.
“He is one of those people who
Wolfgang Bernhard are pretty persistent and don’t take
4 no for an answer. He makes life
uncomfortable for people and he
challenges the status quo, from
Herbert Diess what I know about him from BMW,”
says Mr Ellinghorst.
2011 2 But the scale of the challenge
Alone among big global facing him at VW is altogether
carmakers, VW increases its different. The VW brand made
spending and investments €100bn in sales last year but had
after the financial crisis an operating profit of just €2.5bn.
BMW, by contrast, had €75bn in
1993 2001 2005 2015 0
sales and €7.2bn in operating profit.
VW in financial crisis as Mr Piech tries to Gripped by a new scandal, VW VW poaches Herbert Diess Max Warburton, analyst at
new CEO Ferdinand Piech move VW brand hires Wolfgang Bernhard from from BMW to turn round its Bernstein Research, thinks Mr Diess
recruits José Ignacio López upmarket, pushing Chrysler to make the VW VW brand after years of will be aware that his two
from GM to slash costs up costs brand more efficient margin decline and stagnation predecessors as outsiders hired to
-2 cut costs — José Ignacio López in
96 98 2000 02 04 06 08 10 12 14 16 1993 and Wolfgang Bernhard in
Estimate 2005 — both left the carmaker
within two years after opposition
Admin costs have tripled since 2007 Labour expenses continue to rise from the trade union. Like many, he
Admin expense (€bn) As % of sales Labour costs (€bn) As a % of sales thinks Mr Diess may be interested
in succeeding Matthias Müller as
15 20 25 7 3.4 35 17
VW’s group chief executive.
6 3.2 30 “It looks like he is going to play
5 25 16 this more carefully than López and
3.0 Bernhard. Still he should watch his
4 20 back in two years’ time when he’s
2.8 15
3 15 done good work,” he adds.
2
2.6
10 Mr Diess made his name at BMW
14 by reducing its purchasing costs by
1 2.4 5
€4bn and also helped improve its
0 2.2 0 13 research and development
2007 10 12 14
efficiency — issues VW needs to
2007 10 12 14
address too. Richard Milne
nology have been permitted, often at
great expense in terms of machinery
and components. VW has, for instance,
already said that its top-of-the-range
Phaeton saloon will be delayed and only
come in an electric version.
Mr Diess, renowned for cutting
BMW’s costs in the financial crisis, is
also likely to have a look at the VW
brand’s enormous €86bn purchasing
bill. Mr Warburton says that VW often
over-specifies parts, using higher grade
steel than rivals or more complex and
lightweight parts.
Shwetha Surender, a consultant at
Frost & Sullivan, says VW could cut
€3bn in annual costs from its suppliers.
But she also thinks it could make sav-
ings in research and development,
where it spends more than any com-
pany in the industry. She sees savings of
€2bn-€4bn as possible, instead of the
€1bn the company plans.
For investors, all of this may sound
good, but the uncertainty arising from
the emissions scandal dominates. VW’s
shares have more than halved in the
past six months and the company is still
not sure how big the scandal is, and even
less how much it will cost in lawsuits,
fines and recalls. Mr Warburton says
observers should not fantasise too much
about change at VW given the role of the
union and local politicians.
But he adds: “I can’t lay out what the
costs will be in the next 12 months. My
head says it’s logical to be a bit careful
here, but my heart says this is a bit of an
opportunity. I think we’ll probably look
back at late 2015 retrospectively and
think it was a great buying opportunity.”
TV. Those viewers are then anony-
mously matched in Millennial’s data-
base of smartphone and tablet users, so
that personalised video ads can be
placed in mobile apps, targeting viewers
who have already seen a brand’s TV ad.
For example, a retailer could follow
up a TV spot with a mobile video ad
encouraging a consumer to find the
nearest store, add a sale to their smart-
phone’s calendar, or sign up to receive
more information. Advertisers can also
target mobile advertisements to people
who have seen their competitors’ ads.
While other ad tech companies offer
some ability to retarget TV viewers on
the internet, Millennial says the scale
that it and Rentrak bring sets its offering
apart. Rentrak has data on 25m house-
holds, while Millennial’s ad network
extends across 65,000 apps, reaching
more than 190m unique users monthly.
18 ★ FINANCIAL TIMES Friday 20 November 2015

COMPANIES

Banks Technology

Credit Suisse rules out ‘risky activities’ Uber and Lyft

Lender’s future focus is to
support private banking
and wealth management
RALPH ATKINS — BERN
Credit Suisse plans to stop its invest-
ment bankers engaging in “overly risky
activities” by refusing to set them exter-
nal profit targets, the Swiss bank’s new
chief executive has told shareholders.
Tidjane Thiam said the job of Credit
Suisse’s investment bankers would be
primarily to support the lender’s expan-
sion in private banking and wealth man-
agement.
That would require a shift away from
“short-term trading activities”. His
comments came at a shareholders’
meeting in Bern, Switzerland, which
overwhelmingly approved a SFr6bn
($5.9bn) capital increase that is part of a
wide-ranging strategic overhaul of
Credit Suisse announced by Mr Thiam
on October 21.
As well as a 20 per cent reduction in
assets at the investment bank, his plans
foresee a significant expansion of Credit
Suisse’s activities in managing the
wealth of the world’s richest, especially
in Asia. The bank would withdraw from
“those activities that produce volatile
earnings and are capital intensive”, Mr
Thiam confirmed to shareholders.
Last month, Credit Suisse stopped
Banks. Balance sheet push
acting as a market maker in European
government bond markets, and Mr
Thiam, former head of the UK insurer
Prudential, said the investment bank’s
“right-sizing process” would be com-
pleted by the end of the year.
Credit Suisse’s “new approach” to
investment banking was reflected in the
decision not to set external profit targets
for the two divisions of its investment
bank. “This is to ensure that our bank-
ers do not have incentives to engage in
overly risky activities,” Mr Thiam said.
“The investment bank is there prima-
rily to support our ambitions in the pri-
vate banking and wealth management
space.”
Mr Thiam said the “new wealth” in
emerging markets targeted by Credit
Suisse was owned mainly by first-gener-
ation entrepreneurs — in contrast to
western Europe, where wealth “was cre-
ated four or five generations ago”.
Much of the new wealth is held in
“illiquid form” — factories, for instance.
Rather than short-term trading, Credit
Suisse investment bankers would look
for “longer-term fee opportunities”
from managing such wealth.
The Credit Suisse chief executive has
already raised eyebrows in finance cir-
cles by not setting return on equity tar-
gets for the bank, arguing that such
ratios are subject to many uncertainties.
Instead he has set three-year earnings
growth targets for the Asia-Pacific divi-
sion, international wealth management
and Swiss operations.
Credit Suisse’s plans for a SFr1.32bn
private placement and a SFr4.7bn rights
issue were approved by about 95 per
cent of shareholders.
Mr Thiam told the nearly 600 share-
holders who attended the Bern meeting
that the bank’s Swiss operations were
“central to our strategy”.
It was “a great advantage” to have “a
leading position in one of the most
advanced and most enterprising econo-
mies in the world”.
Credit Suisse plans to list up to 30 per
cent of its Swiss universal bank by 2017.
Results of the capital increase will be
announced on December 3.
race to pick
up $1.5bn as
valuation
doubts rise
LESLIE HOOK — SAN FRANCISCO
JAMES FONTANELLA-KHAN — NEW YORK
Ride-hailing rivals Uber and Lyft are
racing to raise a combined $1.5bn by
the end of the year, as investors become
increasingly sceptical of the lofty valu-
ations attached to Silicon Valley tech
companies.
Uber is looking to raise $1bn and Lyft is
aiming for $500m, as the companies
fight to build market share and finance
expensive legal and political campaigns
to back their business models.
The fundraisings come at a time when
it is becoming harder to gauge how

Investors spoilt for choice as European lenders seek capital
ABN Amro’s listing comes as
Greek banks, Credit Suisse
and StanChart plan offerings
MARTIN ARNOLD — BANKING EDITOR
Like shoppers wandering through a
Christmas market, investors in shares of
European banks are being peppered
with offers of seasonal merchandise.
Today, the Dutch government plans
to raise about €4bn by floating ABN
Amro in the biggest initial public offer-
ing of a European bank since the finan-
cial crisis.
This week, Greece’s four big banks are
also seeking buyers for more than €6bn
in shares to fill capital shortfalls. Else-
where, Credit Suisse and Standard Char-
tered are planning to raise SFr6bn and
$5.1bn respectively to shore up their
balance sheets.
Meanwhile, the UK government has
pledged to keep selling down its multi-
billion-pound stakes in Royal Bank of
Scotland and Lloyds Banking Group.
So far this year, banks have raised
more than $75bn from investors world-
wide, according to Thomson Reuters.
Given all the bank equity still to be
issued in Europe, it is on course to top
last year’s $93bn total, though it
remains well below the record $236bn
raised in 2009 when the financial crisis
forced many banks to raise capital.
James Chappell, banks analyst at Ber-
ABN is being pitched as
a stock that could be
attractive in the low
interest rate environment
enberg, says investors remain cautious
about investing in Europe’s banks. “Peo-
ple are quite uncertain about the eco-
nomic outlook at the moment in Europe
and you have uncertainty around regu-
lation,” he says.
“The third-quarter numbers have
seen more revenue weakness in Europe,
so people are doubling down on US
banks where there is more prospect for
rising interest rates and higher eco-
nomic growth.”
As ABN prepares to float in Amster-
dam today with a market value of about
€17bn, analysts say there are some rea-
sons why it may stand out as a more
attractive investment than others in the
sector.
First, the bank is being pitched to
investors as a defensive yield stock that
could be attractive in the existing low
interest rate environment. “You have
got no growth, so where is your return
going to come from — it has to be the div-
idend,” says Mr Chappell.
The Dutch ABN has promised to pay out 40 per
government cent of its profits in dividends until 2017
plans to raise and half of them after that. Analysts
about €4bn by estimate it will make a net profit of
floating ABN about €2bn this year and pay a €0.85
Amro in the per share dividend, representing a yield
biggest IPO of a of about 5 per cent at the likely IPO price
European bank of €18 per share.
since the Second, ABN is expected to be valued
financial crisis at a discount to its larger local rival ING,
Jock Fistick/Bloomberg
even though it is generating a better per-
formance on some measures. In the first
nine months of the year, ABN made a
return on equity of 14 per cent, one of
the highest in the sector and above the
comparable figure of 11.6 per cent at
ING.
Yet if ABN floats at €18 per share it
will have a premium of about 6 per cent
to its tangible book value, which meas-
ures its net asset value excluding good-
will and other intangibles. That com-
pares to ING’s premium of about 15 per
cent to tangible book value.
Advisers to ABN say its managers
have been forced to accept the discount
to ING because their bigger rival has
more growth potential thanks to its dig-
ital banking operations in countries
such as Germany and Spain.
There are other reasons why investors
may be cautious about buying ABN
shares. The bank, which was once so
dominant in the Netherlands that it
referred to itself simply as De Bank, is
still strongly associated with being one
of the big victims of the financial crisis.
In 2007, ABN ran into trouble after an
ambitious overseas expansion and was
acquired and dismembered by rivals
Royal Bank of Scotland, Santander and
Fortis. That deal ultimately led to RBS
having to be rescued by the UK govern-
ment. When the financial crisis hit, the
remaining Dutch rumps of ABN and
Fortis had to be bailed out by the gov-
ernment at a cost of €28bn.
The bank being floated today bears
little resemblance to its pre-crisis prede-
cessor. Yet there is still some concern
about its capital levels. ABN’s common
equity tier one ratio — a key measure of
capital to risk-weighted assets — was
above most rivals at 14.8 per cent in Sep-
tember. However, its leverage ratio —
measuring capital against total assets —
is less strong.
Because of the recent requirement
from regulators to include off-balance
sheet exposures at its large clearing
business, which has €12bn of customer
loans, the bank’s leverage ratio was 3.5
per cent at the end of September. This is
The Dutch below the Dutch government’s planned
minimum of 4 per cent.
bank has A final potential poison pill at ABN is
promised to that investors are not being offered
shares in the bank itself, but in an inde-
pay out 40 pendent foundation.
per cent of This body has the power to block a
hostile takeover of the bank for up to
its profits in two years if it deems the deal to be
dividends against shareholder interests, removing
this potential — albeit unlikely — upside
until 2017 to the shares.
investors will react to lossmaking start-
ups. Shares in payments company
Square traded below the level of its ear-
lier private fundraising on the first day
as a public company yesterday. Mean-
while, fund manager Fidelity marked
down the value of its stake in messaging
app Snapchat earlier this year.
Uber’s initial conversations with
investors were based on a valuation of
about $70bn. However, that figure has
since come down, according to people
familiar with the matter. Earlier this
year, investors valued Uber at $50bn.
Uber declined to comment.
Both companies are already among
the tech sector’s most aggressive fund-
raisers, with Uber having raised more
than $10bn, a record for a US tech
start-up.
Lyft is aiming to double its valuation
from just six months ago. It is targeting
$4bn before it adds the new money, up
Both companies are
heavily lossmaking,
which is common among
start-ups in Silicon Valley
from the $2bn valuation at which it
raised money from investors including
Alibaba and Carl Icahn, the activist
investor, in May.
“The air has gotten pretty thin where
these valuations are,” said Max Wolff,
chief economist at Manhattan Venture
Partners, which brokers transactions in
private company shares. “Uber is more
at risk than Lyft, because Uber is the
poster boy for the most aggressive ele-
ments of this boom.”
Both companies are heavily lossmak-
ing, which is common among start-ups
in Silicon Valley, where growth is prized
among early stage businesses. Uber has
poured billions of dollars into its inter-
national operations, as it seeks to gain
market share against homegrown rivals
such as Ola in India and Didi Kuaidi
China.
Lyft, which has raised a total of $1bn,
has invested heavily in US marketing as
it bids to steal market share from Uber.
The company declined to comment on
the fundraising but John Zimmer, co-
founder and president of Lyft, said: “We
are growing faster than Uber in the US.”
The company added that it has been
catching up to its rival in San Francisco,
the home town of both companies, and
boasts a 40 per cent market share in the
city. Lyft has also partnered with Didi
Kuaidi, one of its investors and Uber’s
main rival in China.
Yet Uber, which has operations in 65
countries, has revenues that are 10
times higher than Lyft’s, according to
people familiar with the matter. It
expects net revenues of about $2bn this
year, they said. Lyft said it was taking in
$1bn in fares on an annualised basis,
from which the company’s take would
be $200m based on its normal cut.
See Lex
Square IPO Markets

Contracts & Tenders Banks

German co-operatives DZ and WGZ agree to merger

JAMES SHOTTER — FRANKFURT
DZ Bank and WGZ Bank, the central
banks for Germany’s sprawling
co-operative banking sector, are to
merge in a deal that will create the
country’s third-largest banking group.
The two groups, which provide a range
of national and international banking
services for Germany’s 1,000-odd
mutual lenders, said that the new entity
would begin operating next August.
Between them, they have assets of
€501bn, ranking them behind Deutsche
Bank, which has assets of €1.7tn, and
Commerzbank, which has €564bn.
The proposed tie-up is the largest deal
in the German bank sector — which is
composed of private, mutual and
publicly owned lenders — since Deut-
sche’s takeover of Postbank in 2010.
It comes after several previous efforts
to combine DZ Bank and WGZ Bank
ended in failure.
The new bank will be headed by Wolf-
gang Kirsch, currently chief executive
of DZ, while DZ’s chairman Helmut
Gottschalk will lead the supervisory
board. Their counterparts at WGZ,
Hans-Bernd Wolberg and Werner
Böhnke, will become their deputies.
DZ posted a net profit of €2.16bn last
year, more than any other German
bank, while its smaller counterpart
WGZ managed a net profit of €234m.
Mr Kirsch said that the timing of the
merger made sense, given the continu-
ing pressures on the banking system,
including ultra-low interest rates and
tougher regulatory requirements.
“Central banks will continue to try to
keep interest rates artificially low for
the foreseeable future . . . as a result of
this, banks’ interest income will remain
under pressure,” Mr Kirsch said.
He added: “In our market environ-
ment, we are experiencing intense price
competition, particularly in the credit
‘Central banks will
continue trying to
keep interest rates
artificially low’
business, which is also characterised by
the arrival of new market participants.”
Mr Kirsch said the combination was
expected to yield synergies of at least
€100m a year, partly due to eradicating
duplication and increased opportunities
for cross-selling products.
He added that there would be
“moderate” job cuts.
At the end of June, DZ’s fully applied
core tier one capital ratio — a closely
watched measure of financial strength
— stood at 11.8 per cent. WGZ’s was 13.1
per cent.
Mr Kirsch said that WGZ would make
up around 25 per cent of the new bank,
and DZ around 75 per cent, but added
that the precise ratio would be deter-
mined by auditor KPMG.
Friday 20 November 2015
Transport
Bombardier sells 30% stake in train unit to CDPQ
Company shelves plan for
IPO as Quebec pension
fund says it will pay $1.5bn
GUY CHAZAN — BERLIN
Canadian aircraft and train maker Bom-
bardier was forced for a second time in a
month to turn to its home province for a
cash infusion as it announced the sale of
a 30 per cent stake in its rail business to
the Quebec public pension fund man-
French gas supplier targets US rebound with deal for rival
Chief says ambitious $13.4bn
takeover of Airgas will pay off
despite shareholders’ gloom
ED CROOKS — NEW YORK
Benoît Potier, chief executive of Paris-
based Air Liquide, had reached the most
sensitive phase of negotiations to buy
Airgas of the US when the terrorist
attacks of November 13 hit his home
city, killing 129 people.
He was at home, watching the terrible
news come in all night. “Your kids are
out having parties: my daughter was in
one of those restaurants just a week ago.
So it’s a big shock,” he said. The terrorist
attacks provided a sombre backdrop for
the final stages of the negotiations, but
the two companies concluded a deal,
resulting in Tuesday’s announcement of
Air Liquide’s agreed takeover of Airgas
for $13.4bn, including debt.
The deal is an ambitious move, one of
the largest ever acquisitions of a US
materials company by a European
group. It will make Air Liquide the
world’s largest supplier of industrial
gases, which include oxygen, nitrogen,
hydrogen, carbon dioxide and helium,
used in industries such as manufactur-
ing, construction and healthcare.
The initial reaction from the stock
market, though, was unenthusiastic.
Air Liquide’s shares fell 7 per cent on
Wednesday, as investors digested what
was described by David Silver, an
analyst at Morningstar, as a “generous”
price. They also worried about Air Liq-
uide taking on more debt to increase its
exposure to US manufacturing, which
has shown unimpressive growth this
year, in part because of the commodity
price slump.
Mr Potier believes that adverse reac-
tion will prove shortlived. “We lost 7 per
cent, which is not good,” he told the
Financial Times. “But we just need to
wait another week or so, and give time
to absorb the news, and the time it takes
to recognise the value.”
There is no doubt that the offer looks
attractive for Airgas shareholders. At
$143 in cash per share, it is at a 51 per
cent premium to the average Airgas
share price over the past month.
It is also double the $70 per share that
Air Products, another US gases com-
pany, offered to pay in a hostile takeover
battle in 2010-11. That bid eventually
Technology
Starboard hits out at Yahoo
HANNAH KUCHLER — SAN FRANCISCO
Activist investor Starboard Value is
urging Yahoo to abandon plans to spin-
off its stake in Chinese ecommerce
group Alibaba and switch to selling its
core internet business, which ranges
from Yahoo Mail to Fantasy Football.
In an open letter sent Wednesday night,
Starboard accused Marissa Mayer,
Yahoo chief executive, and chairman
Maynard Webb, of having a “dismissive
approach” to the investor’s “serious con-
cerns” about the future of the company,
despite having held several conversa-
tions and meetings with them.
Jeffrey Smith, a managing partner at
Starboard, said the planned spin-off of
Yahoo’s 15 per cent stake in the Chinese
group, worth about $29bn, in a com-
Legal Notices
ager for $1.5bn. The Caisse de Dépôt et
Placement du Québec will acquire con-
vertible shares in a new holding com-
pany to be formed out of the group’s
Bombardier Transportation division.
The deal values the company at $5bn.
Only last month, Bombardier sold a
near-50 per cent stake in its troubled
C Series passenger jet programme to the
Quebec government in exchange for a
$1bn lifeline.
Bombardier has been beset by prob-
lems with the C Series, an ambitious
There is a compelling strategic case for the Air Liquide-Airgas deal, say Benoît Potier, below, and Peter McCausland, below right — Fabrice Dimier/Bloomberg
How the companies compare
2014 gas & services sales (%)
Air Liquide (€13.9bn)
Americas Europe
24
Middle East 48
& Africa 3
25
Asia Pacific
Source: Air Liquide
pany to be known as Aabaco, was not
the “best alternative”.
“If you stay on the current path, we
believe the potential penalty for being
wrong is just too great, and the potential
reward for being right is not materially
better than the other alternative,” Mr
Smith wrote.
Yahoo shares slipped 0.2 per cent to
$32.90 by lunchtime trading in New
York yesterday. Shares have fallen 34
per cent this year, despite the plan to
spin-off the stake to give shareholders
direct access to the Alibaba investment.
The plan was formed under pressure
from Starboard but has faced setbacks,
while Ms Mayer has struggled in her
mission to turn round the core business.
Aabaco was due to be formed in late
2015, but the plan stumbled when US
tax authorities refused to rubber stamp
the deal.
Yahoo decided to press ahead on
advice of its lawyers that the spin-off is
the most tax efficient way to hand the
Alibaba stock to shareholders. In the let-
ter, Starboard, a top 30 investor, said it
agreed with Yahoo’s assessment but that
it was clear the market had taken a “dim
view” of the strategy and appeared to be
valuing the core business at just over
$2bn.
Starboard believes the most “prudent
path” is to sell the core business and
return the money to shareholders
through share buybacks and dividends.
★ FINANCIAL TIMES
COMPANIES
attempt to break into the narrow-body
commercial jet market dominated
by Airbus and Boeing. Cost and timeta-
ble overruns have placed a strain on the
company’s profitable business jet oper-
ations and on the group more broadly.
Bombardier last month reported
a $4.9bn loss for the third quarter.
It confirmed it had sought unsuccess-
fully to sell a stake in the C Series to Air-
bus and it has been reported it could sell
a stake to other companies.
The sale of the stake in its rail business
Interview. Benoît Potier
Air Liquide + Airgas (€17.8bn)
Middle East
& Africa 2
Asia Pacific
19
42
Europe 37
Americas
Mining
Indonesia in extortion probe
AVANTIKA CHILKOTI — JAKARTA
Indonesia has launched an investiga-
tion into alleged attempts by senior
officials to extort a stake in Freeport-
McMoRan’s Indonesian unit in return
for an extension of the US mining com-
pany’s right to operate in the country.
Sudirman Said, minister of energy and
mineral resources, filed a complaint
with the House of Representatives eth-
ics committee this week alleging that
the Speaker, Setya Novanto, had
demanded Freeport divest shares to
The Speaker,
Setya Novanto,
has told local
media that his
comments were
made as a joke
President Joko Widodo and his vice-
president, Jusuf Kalla.
“We will wait and see how the house
settles this,” Mr Kalla told broadcaster
BeritaSatu, denying any involvement.
When asked whether Mr Widodo had
reacted, he added: “Of course, anyone
will get angry if their name is tagged.”
Mr Widodo’s office did not respond to an
emailed request for comment.
The matter has raised fresh concerns
around corruption in Southeast Asia’s
largest economy. Mr Novanto told local
media his comments were made in jest.
marks a volte-face for Bombardier,
which announced in March that it
planned to float shares in the unit. It had
considered a competitive auction for the
private placement of a minority stake.
There were indications earlier in the
year that Bombardier might be explor-
ing a sale of BT to an industry player,
with reports saying it was in talks with
two Chinese state-owned trainmakers.
But Lutz Bertling, president of Bom-
bardier Transportation, said that the
idea of an investment by CDPQ had
failed when a court in Delaware upheld
Airgas’s “poison pill” defence. Since
then, the S&P 500 index has risen 56 per
cent, and Air Products shares by about
the same amount, while Airgas’s stock
has increased 117 per cent.
The Air Liquide deal is a personal vin-
dication for Peter McCausland, who
founded Airgas in the early 1980s and is
now executive chairman.
“They’ve made a good offer for our
shareholders, and we’re all about creat-
ing value,” he told the FT.
He and Mr Potier agree, though, that
the bid terms are justified by the “very
compelling” strategic case for the deal.
First, said Mr Potier, although Airgas’s
core business of distributing “pack-
The scandal may also add to uncer-
tainty for Freeport as senior politicians
push for an evaluation of the group’s
operations in Indonesia. The miner is
already battling with weak commodity
prices and Indonesia’s ban on the export
of unprocessed minerals.
“We can’t comment because the alle-
gations are being investigated,” said
Riza Pratama, Freeport’s spokesman.
Freeport, which plans to invest
$16bn-$18bn in underground develop-
ment, has been lobbying Jakarta for
affirmation its contract in Indonesia will
be extended beyond 2021. The group
generated 8.4 per cent of its revenue last
year from Indonesia, said Bloomberg,
and had expressed hope over “produc-
tive discussions” with Jakarta.
Amid this week’s scandal, Luhut Pan-
jaitan, co-ordinating minister for politi-
cal, legal and security affairs, appeared
to flip-flop on those reassurances. “The
extension of the Freeport contract can
only be completed through negotiation
two years before the contract expires,”
he said yesterday. “The divestment and
development of a smelter were sup-
posed to be completed by Freeport a
while ago and the company has simply
failed to fulfil those requirements.”
The Indonesian government, which
has a 9.4 per cent stake in Freeport Indo-
nesia, had set a deadline of October 14
for the company to lay out proposals for
a further 10.6 per cent stake sale.
emerged as the “most attractive option”.
He said the administrative costs
would be significantly lower than if the
company had pursued an initial public
offering, with a lower execution risk. “A
lot of recent IPOs have not delivered
what they promised,” he said. He also
said CDPQ was “focused on the long-
term development of the company”.
Mr Bertling said the proceeds from
the sale of the stake to CDPQ would go
towards “general business purposes” of
Bombardier. “These injections give us
aged” gases, in cylinders or other small
quantities, might seem unglamorous, it
was actually a very attractive market.
There was repeat business, cash flow
was strong, and Airgas has been suc-
cessful in adding sales of
related products and
services alongside its
gas distribution.
“The merchant busi-
ness is not excit-
ing: it is a little
bit cumber-
some, boring,”
said Mr Potier.
“[But] this is a
simple, small
but very, very
Legal Notices
19
financial flexibility. We can complete all
the programmes and have a safety net.”
Bombardier Transportation, with
39,700 employees, builds trains and
provides maintenance services, system
integration and signalling. The com-
pany has a $30bn backlog. Over the first
nine months of this year, its earnings
before interest and tax were $342m,
with a profit margin of 5.6 per cent.
Montreal-based CDPQ is one of Can-
ada’s leading institutional fund manag-
ers with $240.8bn in net assets.
efficient business.” Putting Air Liquide’s
production and bulk sales together with
Airgas’s distribution would create a ver-
tically integrated company that can cap-
ture opportunities for profit wherever
they emerge, he added.
Second, there is a real prospect that
technology will shake up the gas distri-
bution business. The “industrial inter-
net” — equipment fitted with sensors
and communications to generate data
that can be analysed to improve per-
formance — is likely to mean that signif-
icant long-term productivity gains will
be possible in the gas cylinder business,
Mr Potier believes.
Third, the deal increases Air Liquide’s
exposure to the US, which is expected to
be the best market for industrial gases
in the developed world over the next
half-decade. In 2014 the company made
24 per cent of its revenues in the Ameri-
cas. Adding in Airgas, which makes
almost all of its sales in the US, that pro-
portion would rise to 42 per cent.
Although US manufacturing has been
affected by falling commodity prices,
which have hit demand for products
such as mining equipment and the steel
tubes used in oil and gas wells, Air Liq-
uide still expects the US industrial gases
market to grow by about 4.4 per cent
every year from 2014-20. That is much
faster than the expected annual growth
of 2-2.5 per cent in Europe, and just 1-2
per cent in Japan.
Air Liquide’s executives are confident
the potential pitfalls of the deal are sur-
mountable. US antitrust regulators may
order some asset sales, Mr Potier
expects, but the amounts are likely to be
“reasonable”.
Paying for the deal means Air Liquide
taking on a lot of debt: essentially the
entire $13.4bn price as a bank bridging
loan. That will be refinanced as soon as
possible through bond sales, bank loans
and a €3bn-€4bn share issue, so the
company can keep an A or A-minus
credit rating.
With ample liquidity making the
deal possible, said Mr Potier,
this was a good time to be buy-
ing Airgas, in spite of appear-
ances. “We’ve been absorbing
the shock in the US of
the low oil price, and
I don’t know exactly
how long it will
take, but the US
market is going to
rebound,” he said.
20
Retribution would have been a dish better served hot at HBOS
What blame should King George I,
governor of the South Sea Company,
bear for its collapse in 1720? The
Financial Conduct Authority should
reopen this cold case. The regulator is
already reconsidering whether to ban
the ex-heads of Halifax Bank of
Scotland from the City. They ran the
overleveraged bank into the ground at
huge public cost in 2008. That’s almost
as long ago as the South Sea scandal in
the hive mind of finance, an industry
with a conveniently short memory.
Some would say it would be a waste
of time barring the monarch from
holding a senior job in banking or
broking. He has been dead a while.
But banning ex-chairman Lord
Stevenson and Messrs Hornby and
Crosby, who served as successive chief
executives of HBOS, would be almost
as feeble. Only Andy Hornby is still
Support services
Redundancies
bill hits Royal
Mail profits
Postal operator facing
cut-throat competition
in parcels business
MICHAEL POOLER AND
NATHALIE THOMAS
A larger than expected redundancies
bill weighed on Royal Mail’s profits in
the first half, though it said a pro-
gramme to modernise the 500-year-old
business was on track to deliver greater
cost savings.
The postal operator blamed higher
so-called “transformation costs” as it
posted a 30.5 per cent drop in pre-tax
profits to £116m in the six months to 27
More on ft.com
Royal Mail delivering in tough
market: Lex’s Oliver Ralph and
Jonathan Eley discuss how the
company is faring
ft.com/video
September, on revenues down slightly
to £4.4bn. During the period nearly
3,000 staff voluntarily left the group’s
core UK letters and parcels business,
where the company expects underlying
operating costs to fall by at least 1 per
cent this financial year.
Moya Greene, chief executive, said:
“We have maintained a tight grip on
costs and so we think these are very
good results. We delivered an unprece-
dented amount of change.”
Royal Mail entered a new chapter in
its history when the government sold off
its remaining stake in October to com-
plete a controversial privatisation proc-
ess. Since taking over in 2010, Ms
Media
Sky scores regulatory victory over BT in long-running sports coverage battle
HENRY MANCE
MEDIA CORRESPONDENT
Sky has won a belated regulatory vic-
tory after Ofcom ruled it should no
longer have to make its main sports
channels available to rival BT at a fixed
price.
The regulator said yesterday that it was
removing the “wholesale must-offer”
obligation, partly because BT’s own
investment in sports rights had
increased consumers’ options. It will
now be up to BT and Sky to agree com-
mercial terms for the channels.
The ruling could mean Sky Sports 1
and 2 are not made available as part of a
BT subscription, or are available only at
a higher price.
It may also strengthen Sky’s hand in
agreeing a deal to resell BT’s own sports
employed full time. He does not work
in finance.
The trio cannot be fined for any
misconduct, the penalty that should
have been sought. The deadline for
that expired during the interminable
seven years it has taken the FCA and
the Prudential Regulation Authority to
publish their report on the collapse.
Delays reflecting the reluctance of
the financial elite to attack its own
were compounded by “Maxwellisation”
— a legal requirement to negotiate with
individuals named in a report.
We can blame Maxwellisation for the
tone of this report, which is as bland as
the Tunnock’s Teacakes produced in
HBOS’s Scottish homeland.
Andrew Green QC has done a better
job examining the failures of the FCA’s
forerunner. The silk slams the
Financial Services Authority for
limiting its pursuit of the reckless men
to divisional boss Peter Cummings,
who was fined £500,000 in 2012.
Mr Green rightly says a case should
have been brought against Mr Hornby.
You could make the same argument
concerning Lord Stevenson and James
Crosby. They set the freight train
Greene has embarked on an overhaul of
the postal operator, seeking to update
its antiquated systems and slim down
the workforce.
As a result of its efficiency drive, the
group said it had saved £200m in cumu-
lative costs in the past three years and
was targeting a further £500m by 2018,
including £180m this year.
An increase in parcels, an area on
which Royal Mail’s future growth rests,
offset a fall in letters, which are in struc-
tural decline. Its overseas parcel opera-
tion, GLS, was particularly strong.
However, ahead of the peak Christ-
mas period there were further signs of
the cut-throat competition to deliver
Britain’s packages. Pricing pressures
meant a 4 per cent rise in Royal Mail’s
UK parcel volumes only translated into
1 per cent revenue growth.
Rival carriers DPD and Hermes are
building new sorting hubs and expand-
ing vehicle fleets, while Amazon is roll-
ing out its own delivery network. UK
Mail and DX Group, two smaller com-
petitors, have suffered share price falls
after anaemic financial performances.
“My estimate is that we have 20 per
cent too much capacity in the market
right now and it definitely has increased
the trend that prices are under pres-
sure,” Ms Green added.
Rob Byde, an analyst at Cantor Fit-
zgerald, said the results were “solid” and
in line with expectations. But, he added:
“Over the medium term, [Royal Mail]
faces potentially higher cash pensions
costs, tighter regulation in UK mail and
a tricky fresh wage and productivity
negotiation with the union.”
Shares in Royal Mail rose 4.9 per cent
to 476p. It floated in 2013 at 330p.
channels. The company’s customers
must subscribe separately to BT to
watch its coverage, including the Cham-
pions League football competition.
BT said it was “very disappointed” by
Ofcom’s decision. “We still believe that
effective remedies are essential to
address the failure of competition in the
pay-TV market,” it said.
Sky welcomed the move, saying: “We
are, and have always been, more than
happy to make our channels available
on other platforms.”
The ruling is the latest episode in
a regulatory saga. Ofcom started con-
trolling the wholesale price of Sky
Sports 1 and 2 in 2010, following com-
plaints by BT.
The move was subject to a lengthy
legal challenge by Sky, with the Court
of Appeal ruling in Ofcom’s favour last
★ FINANCIAL TIMES
UK COMPANIES
rolling downhill. Mr Hornby merely
clambered aboard when it was already
heading for derailment, according to
Ray Perman, author of Hubris, a book
on the wreck.
The FCA should disqualify the three
men, since that is the main penalty
available. MPs should legislate to curb
Maxwellisation.
Regrettably, compromised regulators
will get away with barely a scratch.
Back at the time of the South Sea
Bubble, when standards were evidently
higher, the chancellor of the exchequer
was imprisoned in the Tower.
Healing Hands
Private equity veteran Guy Hands has
complained executives coming for job
interviews are arrogant, unhappy and
treat him as “an agony aunt”.
GH: So you’d fit in at Terra Firma?
Candidate: Sure. I’d be surrounded by
near-equals — eights to my nine out of
10. At Permadven the other partners
are sixes. At home, I have a wife who’s a
five and a toddler who’s barely a two.
GH: How does that make you feel?
Growth spurt
Mothercare
doubles UK
profit in rejig
year. Sky’s initial appeal against Ofcom
is due to be reheard.
“Ofcom continues to monitor
the pay-TV market closely. Should evi-
dence emerge of practices that we
consider to be prejudicial to fair and
effective competition, we will quickly
The ruling means Sky and BT will have to agree commercial terms — David Jones/AP
C: Terrible! You don’t mind if I stretch
out on this couch do you?
GH: Er, sure. How do you get along
with your investors?
C: You’ll find this interesting, so take
notes. To be frank, they’re very
controlling. Emotionally, they’re cold.
They remind me of my mother.
GH: How do you deal with this?
C: I drive a Vantage and dine in five-
star restaurants. I weep myself to sleep.
What do you advise?
GH: Well, only you can solve your
problems. But you might feel fulfilled if
you invested entrepreneurially and ate
out at Garfunkel’s.
C: (sitting up) I feel better already! Did I
get the job?
GH: No. There’s only room for one
massive ego at Terra Firma. Please pay
for your therapy on your way out.
Looming difficulties
Loom bands were massive last year.
John Kay made several for Lucy
Kellaway. Now the craze is over among
tweens, as it is among FT columnists.
This helps explain a 26.3 per cent drop
Mothercare has more than doubled
pre-tax profits on the back of a
turnround at its UK business, though
sales remain weak at higher-margin
international franchises.
The buggy-to-babywear retailer
posted a 112 per cent year-on-year
increase in pre-tax profits to £7m in
the 28 weeks to October 10, due largely
to the halving of underlying UK losses.
Mark Newton-Jones, the chief
executive, said the company had
benefited from selling more products
at full price and refurbishing stores.
Mr Newton-Jones was appointed last
year to overhaul the UK strategy and
lighten debt. His aggressive store
reassess the need for regulation,” the
regulator said.
“In particular, Ofcom wants to be sure
consumers continue to have access to,
and a choice of, packages and services
containing Sky Sports 1 and 2.”
BT’s investment in sports rights,
in half-year underlying profits to £9.3m
at single-price retailer Poundland.
Worryingly, weakness is extending
into the third quarter. Poundland
warned of “volatile trading” around
Black Friday. The share price slumped
20 per cent yesterday.
The Black Country-based business
expects to add £25m in underlying
earnings by 2018 from the £55m
acquisition of 99p Stores. But
integration costs will help peg back
2016 forecasts for profits before tax to
about £35m from £48m, according to
Cannacord.
Investors see Poundland’s rival B&M
as a better bet. It has higher margins, is
growing faster and bears no integration
risks. The difficulty for both groups is
that single-price retailing is a category
with fuzzy borders and low barriers to
entry. They are exposed to fashions for
investments, which change like crazes
for pastimes. To illustrate: forsaking
loom bands, Lombard and Lex are
trading Match Attax football cards so
hard it’s a wonder we ever get time to
calculate a net present value.
jonathan.guthrie@ft.com
closure plan saw total space fall 7.4
per cent year on year in the first half
as the company moved out of high
streets and into retail parks.
Mr Newton-Jones said stores were
becoming “showrooms” for
Mothercare’s “full online offer” as
the group reported online sales 22
per cent higher on last year.
UK like-for-like sales grew at 3.8
per cent, compared with 1.5 per cent
in the same period last year.
However, international like-for-
like sales declined 2.3 per cent.
International franchises account for
66 per cent of Mothercare’s
business. Aliya Ram
Chris Ratcliffe/Bloomberg
including an £897m deal for exclusive
Champions League coverage, was moti-
vated partly by a belief that Sky’s domi-
nance of premium sports rights would
undermine its core markets of teleph-
ony and broadband.
The wholesale must-offer obligation
applies only to YouView, the platform
whose backers include BT and the
smaller broadband supplier TalkTalk.
Shares in Sky increased 1 per cent yes-
terday, while those in BT rose 0.79 per
cent.
Analysts at Citi said that any
increased payments by BT to air Sky
Sports 1 and 2 were “unlikely to be that
significant”.
But Toby Syfret, an analyst at Enders
Analysis, said any price rises would
depend partly on how actively Ofcom
scrutinised the sector.
Friday 20 November 2015
City
Insider
Edited by
Harriet Agnew
harriet.agnew@ft.com
Richard Caring
Fore!
Chinese President Xi Jinping’s state
visit to the UK last month may have
been trumpeted by both sides as a
“golden era” in bilateral ties. But
over at the exclusive Wentworth
golf club in Surrey, UK-Sino
relations are under strain.
Wentworth’s new Chinese owner
Reignwood said last month that its
4,000 members will have to reapply
for just 800 membership places,
and they must pay a £100,000 fee
or lose their membership. Now
Wentworth’s disgruntled members
are fighting back. The Wentworth
Residents Association is today set
to approve a resolution to make a
challenge to Reignwood’s
proposals. A group of members and
residents have formed “Wet Feet”,
named after an old Chinese
proverb: “It never rains on your
neighbours without you getting
your feet wet.” They are claiming
broken promises on all sides.
Richard Caring, pictured, the ultra-
wealthy restaurateur who sold the
club to the Chinese for £135m,
remains a director of Wentworth,
having — as they see it — welched
on his pledge to find “an owner
with integrity [in] recognition of the
iconic nature of Wentworth”. And
Reignwood had promised “it was
committed to preserving [the
club’s] unique culture”. One irony —
back in China, the Communist Party
has banned all 88m of its members
from joining golf clubs because
they’re too elitist.
Jeffrey Archer
Mates’ rates
To the Savoy on Wednesday night,
where a ballroom of bow-tied
bankers voted in a tongue-in-cheek
debate. The motion? “Money makes
the world go round.” The gala
dinner was organised by Debate
Mate, a social mobility charity that
organises debating clubs in
schools. It saw City grandees and
hedge fund millionaires nodding
support as inner-city teenagers
told them that love and kindness,
not credit derivatives or forex
spreads, get people out of bed in
the morning. And just in case
anyone worried that the evening
wasn’t sufficiently infused with self-
satire, Jeffrey Archer was on hand
to conduct the after-dinner auction.
The politician and fictionalist
delivered a few choice lines on the
importance of telling the truth.
Arne Sorenson
Room service
How Arne Sorenson became the
first non-Marriott to lead the hotel
chain Marriott International might
be of interest given Marriott’s
$12.2bn acquisition this week of
rival Starwood. Sorenson could not
be more different from his
predecessor and mentor Bill
Marriott. Sorenson is a Democrat,
Marriott is a Republican. Marriott
likes Ferraris, Sorenson drives a
Prius. Both men are religious, but
Marriott is a high-ranking member
of the Mormon church while
Sorenson is the son of a Lutheran
missionary. It was his humility,
according to Marriott, that clinched
the job: “He’s not arrogant, he’s not
a big shot, he’s not a master of the
universe.” No presidential suite to
celebrate at Starwood’s palatial St
Regis, City Insider suspects.
Email etiquette
Private — keep out
No good at keeping secrets? An
attempt has been made to solve
the perennial problem of private
emails being read by the nosy PA.
The head honchos of one property
company have decreed that if
directors intend to send a personal
message, they should mark the
subject line “Private” followed by
their initials. The plan is that this
should scare the PAs into not
peeping. That is, unless it proves to
be an irresistible signpost to the
best office gossip. Maybe better to
tag messages: “Further query re
year-end accounts”.
Friday 20 November 2015
Retail
Poundland seeks ‘new market segment’ as costs rise
Retailer will experiment
with prices above £1 in
about 30 stores next year
ALIYA RAM AND JOEL LEWIN
Poundland will experiment with prices
above £1 for the first time next year as it
battles to absorb rising costs and fierce
competition from other discounters.
The cut-price retailer, which at
present sells everything from snacks to
toys for no more than £1, yesterday said
it would try more expensive products in
about 30 of its larger stores from April.
The idea will be to “take a new seg-
ment of the market”, according to chief
executive Jim McCarthy. “If that’s a suc-
Utility challengers face uphill struggle on profits
Independent alternatives to
the ‘big six’ slide into losses
as revenues power ahead
KIRAN STACEY
ENERGY CORRESPONDENT
They are young, affluent and shop at
online supermarket Ocado.
Energy consumers have been flocking
to independent utility companies such
as Ovo Energy and First Utility in the
past few years as they become increas-
ingly dissatisfied with the “big six”
energy groups that dominate the sector.
But analysis by the Financial Times
suggests that while revenues among the
new entrants are rising fast, profits are
not. Revenues among the eight biggest
independent suppliers have risen
almost tenfold in the past five years. But
over the same period, profits have
slumped from a total of £4m to losses of
more than £14m.
The decline in profits has been exac-
erbated in the past 18 months by the fall
in the oil price, which has driven down
the costs of electricity consumption.
Analysts say one reason for the dis-
connect between profits and revenues
may be that customers of the independ-
ent providers are more price sensitive
and less loyal than those buying energy
from the established players. If prices
begin to rise, they are more likely to
switch provider.
“People who switch supplier are more
affluent, but more likely to switch again.
They are valuable but they are savvy,”
says Edmund Reid at the research group
Lazarus Partnership.
The independent sector has grown in
market share from under 1 per cent in
2010 to over 13 per cent today. Amber
Rudd, the energy secretary, on Wednes-
day welcomed that growth. She said:
“The big six are losing market share
every quarter. Innovative new suppli-
ers, which range from start-ups to local
authorities, are demonstrating how
competition is working for people.” But
she added that competition was not yet
doing enough to drive down prices.
Falling profits have not stopped the
independents from spending significant
amounts on trying to win customers.
Ovo Energy, the second-biggest inde-
pendent energy supplier in the UK, with
500,000 customers, generated revenues
of £317m in 2014. But spiralling costs
saw losses before tax at the company
rise from £658,000 between May 2009
and July 2010 to £37m last year.
“It could be that some companies are
mainly focused on getting customers in
with cheap energy deals and then selling
them higher-margin services,” says Mr
Reid.
Stephen Fitzpatrick, Ovo’s chief exec-
utive, last month blamed marketing
spend, fees, software licensing and
higher staff costs for the losses, adding
Property
Grainger benefits from rising rental sector
JUDITH EVANS
PROPERTY CORRESPONDENT
The UK-listed landlord Grainger yes-
terday reported a higher-than-
expected rise in the value of its assets as
it seeks to fight off activist investors
and position itself at the forefront of a
rising rental sector.
Grainger said net asset value rose 9.7 per
cent in the year to the end of September,
exceeding analysts’ expectations. The
increase was driven by buoyant values
in the company’s portfolio of rent-con-
trolled homes, which it can sell once
properties become vacant.
Grainger also announced it had com-
pleted the £34m sale of its share in a
cess we’ll take a view about multi-price
in the group,” he said.
Poundland’s shares fell 19 per cent to
226p after the company revealed a drop
in half-year profits and warned of vola-
tile trading in the run-up to Christmas.
First half pre-tax profits fell 43.5 per
cent to £5.3m because of costs associ-
ated with expansion. Costs have stacked
up from Poundland’s acquisition of rival
discounter 99p Stores and aggressive
store openings in the UK and Ireland.
Like-for-like sales declined 2.8 per
cent in the six months to September
compared with growth of 4.7 per cent in
the same period last year.
Analysts had expected a decline,
which the company blamed on adverse
currency movements — and the end of
An engineer works on high-voltage pylons. The new energy suppliers find that customers who switch to them have a tendency to move again
Ecotricity
Revenue (£m) Pre-tax profit (£m) Revenue (£m)
80
60
40
20
0 0 0
2010 11 12 13 14
Source: companies
£14m £4m
Combined losses Profits reported
posted by the by the same
eight biggest operators five
new entrants years ago
German joint venture, which it brought
forward as part of efforts to refocus its
business on its core UK market.
The FTSE 250 company accelerated
its exit from MH Grainger JV Sarl, a joint
venture with Heitman, selling its por-
tion to “a large German investor”. It is
also in the process of selling wholly
owned German assets. The Newcastle-
based group has had a bad year amid a
campaign by Crystal Amber, a Guern-
sey-based activist investment fund,
which owns 3 per cent of its shares.
Grainger has resisted the suggestion
that it should seek a takeover by an
institutional investor, but has replaced
its chairman, chief executive and
finance director during the year.
★ FINANCIAL TIMES
UK COMPANIES
the loom band craze. In June the com-
pany warned of “subdued” consumer
demand, leading analysts to question
the discounter’s ability to absorb volatil-
ity and costs without changing its price.
Nick Bubb, an independent retail ana-
lyst, said a multi-price trial showed
Poundland was looking to “hedge its
bets”.
“Although the first half comparatives
were tough and [Poundland] are not
alone in having had a quiet October/
early November, it’s hard to avoid the
view that the growth of B & M and Home
Bargains is putting some pressure,” he
said.
Shares in B & M, a multi-price dis-
counter that listed three months after
Poundland last year, have risen 17 per
Energy. Growth test
Ovo Energy
Pre-tax profit (£m) Revenue (£m)
4 300 0 600
3 -10
200
2 -20
100
1 -30
-40 0
2010 11 12 13 14
that he could not say when the utility
would become profitable.
It has been a similar story for Spark
Energy, which launched in 2007. The
company increased its revenues from
£7.8m in 2010 to £83m last year, but
during the same period, a profit of
£67,704 became a loss of £34,401.
Ian McCaig, chief executive of First
Utility, the biggest and one of the most
profitable of the independents, likens
the situation to what happened in the
airline industry several years ago.
“When the market began to be deregu-
lated, low-cost airlines began popping
up all over Europe. But only those that
New chief executive Helen Gordon is
due to reveal her strategy for the com-
pany on January 28.
Grainger said pre-tax profit was down
38 per cent to £50m because of losses on
the reacquisition of Equity Release
(Increments) Limited, known as Eril,
which it sold in January to Clifden Hold-
ings. Clifden failed to pay and subse-
quently entered administration, while
Grainger took a further £7m hit on
derivatives during the year.
But profits from its reversionary
assets — the rent-controlled properties
that make up the majority of its hold-
ings, which it sells when they become
empty — were up to £68.4m from
£60.6m a year earlier.
cent since it floated. Poundland’s have
dropped 24 per cent since its market
debut.
Poundland said it would increase
targets for new stores to
1,400 in the UK and Ire-
land — up from an origi-
nal 1,000 — to reassure
investors that the 99p
acquisition would not
stop organic growth
plans.
“We have to grow,”
Mr McCarthy said. “We
have to keep diluting our
cost base so we can keep providing
value.”
Total sales rose 6.2 per cent to
£561.1m, fuelled by the opening of 52
First Utility
Pre-tax profit (£m) Revenue (£m)
10 60
400 5 40
200 0 20
-5 0
2010 11 12 13 14
were best able to operate and hedge
their costs managed to survive,” he says.
The figures are not necessarily an
immediate problem for these compa-
nies, as constant customer acquisition
and in some cases injections of cash
from private equity backers are helping
fund operations.
Many independents fund their work-
ing capital by taking sizeable sums up
front from new customers and paying
them back much more slowly if they
end up using less electricity than pre-
dicted. Ovo last year, for example, was
owed £32m by customers and suppliers,
but owed £82m to customers.
Mining
Lonmin investors back $400m rights issue
JAMES WILSON
MINING CORRESPONDENT
Lonmin’s shareholders have approved
its deeply discounted rights issue, pav-
ing the way for the platinum miner to
raise more than $400m and stave off
financial collapse.
The miner is struggling for profitability
amid a sharp decline in platinum prices
and had warned that banks’ willingness
to refinance their lending to the com-
pany depended upon the equity issue
going ahead.
Lonmin’s shares have declined more
than 90 per cent this year. In the capital
raising, the company is offering inves-
tors rights to buy 46 new shares for each
new stores and the boost from the take-
over of rival discount chain 99p Stores.
Mr McCarthy said Poundland’s core
offer would still be £1 products and that
trial multi-price stores might
operate under a modified
brand, such as “Poundland
Plus”.
“If Poundland could put
prices up we wouldn’t be so
inventive and innovative in
how we tackle costs,” he
said.
Like other retailers, Pound-
land is grappling with the intro-
duction of the UK’s national living wage,
which will raise the minimum wage for
over-25s to £7.20 an hour.
Poundland said it would switch to
Good Energy
Pre-tax profit (£m)
3 8.8% year on year
2 print advertising. Employment and
1 both print and digital.
0 free print titles in October, and a further
2010 11 12 13 14
Mark Freshney of Credit Suisse says:
“Energy supply can be managed in a
working capital positive way, so that the
customer pays ahead of when they con-
sume. This is the most important source
of companies’ capital.”
This means companies can continue
to fund expansion before starting to
raise prices in an attempt to make a
profit from existing customers. But it
does leave them vulnerable to unex-
pected problems, such as IT failures.
That is exactly what happened in 2011
to Independent Energy, which was the
biggest small supplier at the time but
collapsed after its billing system failed.
share they hold, at a 94 per cent dis-
count to the stock price that prevailed
when the proposals were announced.
Some analysts have warned that Lon-
min could yet require more capital
within three years if the price of plati-
num does not recover. Lonmin raised
cash through similar issuance of equity
in 2009, after the global financial crisis,
and in 2012, after a crisis in which 34
striking workers were killed by police.
Brian Beamish, chairman, said Lon-
min had a “detailed and carefully struc-
tured business plan”, which will cut
costs by trimming production and jobs.
The rights issue is expected to raise
$369m for Lonmin after $38m of fees to
banks, including fees for amending the
21
LED lighting in stores, which would cut
its electricity bill by a third, and expand
self-checkouts. The company also said it
was optimistic it could crack the Span-
ish discount market after its trial store,
in Torremolinos, reported like-for-like
sales growth.
Darren Shirley, analyst at Shore Capi-
tal, said the UK market remained chal-
lenging, but “the combination of 99p
and the potential from Spain, a rollout
of the latter of which remains out with
our forecasts, has the scope to sustain
strong ongoing growth from the group”.
Mr McCarthy warned that trading
conditions in the third quarter would be
“volatile” as consumers change their
Christmas buying patterns in response
to Black Friday special offers.
Media
Johnston
Press shares
fall to all-time
low as print ad
sales shrink
HENRY MANCE AND JOEL LEWIN
Shares in Johnston Press fell 11 per cent
to their lowest level in history, as print
advertising revenues at the regional
newspaper group continued a sharp
decline.
The company, which owns the Scots-
man, the Yorkshire Post and dozens of
other titles, said total revenues had
fallen 8.8 per cent year on year between
July and October. That was deeper than
the 3.2 per cent decline it reported for
the same period last year, and the 7.6 per
cent fall in the second quarter.
Shares in Johnston Press have fallen
70 per cent over the past year, and
nearly 90 per cent since early 2014. The
company has been seen as a potential
acquisition target after its rivals Trinity
Mirror and Local World joined forces to
create the UK’s largest local publishing
group. Trinity Mirror has indicated that
it is looking for further deals.
In its trading statement, Johnston
Press said that its underlying profit and
net debt would be in line with previous
guidance. The company’s revenue trou-
The Scotsman and
Yorkshire Post owner
said total revenues fell
bles were led by a 14.7 per cent drop in
property advertising fell 22.4 per cent
and 20.8 per cent respectively across
The company said it “continued to
focus on offsetting revenue decline with
cost reduction”. It closed or merged 11
seven in November.
Citi analysts said that the trading
statement highlighted “the volatility in
print” businesses. Shares in Daily Mail
and General Trust, publisher of the
national Mail titles, have also fallen this
year, although Trinity Mirror’s have
risen slightly.
Unlike its peers, Johnston Press
remains highly leveraged from a series
of acquisitions. Net debt was £183.3m as
of June, down from about £300m at the
start of 2014.
The company has pinned its hopes on
its 1XL advertising exchange, which it
says allows brands to reach more inter-
net users than MailOnline, the Guardian
or the Daily Telegraph. Digital revenues,
which represent about one-eighth of
total sales, rose 8.4 per cent.
company’s $360m banking facility,
which was due to expire next year.
About half of the proceeds will be used
to cut Lonmin’s net debt of $185m. Part
of the remainder will fund some of the
company’s capital expenditure and
redundancy costs for about 6,000 work-
ers in its 30,000 workforce.
Mr Beamish told an extraordinary
shareholder meeting yesterday that,
while the platinum industry had been
“at the centre of a feud” between labour
unions, tension had abated with the rel-
atively new AMCU union.
About 88 per cent of shares in the
company were voted in favour of five
measures connected to the rights issue.
See Lex
22 ★ FINANCIAL TIMES Friday 20 November 2015

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.19% -0.02% -0.10% -0.627% -0.98% -1.06%

0.81% 0.43% 1.07% 1.41% 0.67% 0.845% 0.592% 0.286%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
11,085.44 19,859.81
2,079.71 13,704.19 6,345.13
13,428.92 6,278.97 2,042.98
2,018.94 10,238.10 18,207.15 1,988.91

Day -0.19% Month 2.31% Year 1.38% Day 0.22% Month -2.39% Year -10.35% Day 0.81% Month -0.24% Year -5.37% Day 1.14% Month 2.81% Year NaN% Day 1.07% Month 8.57% Year 14.50% Day 1.33% Month -2.04% Year 1.11%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,074.28 1,502.33
44,599.74 10,354.70 22,989.22 3,019.03
44,523.01 22,500.22
4,840.12 1,431.61 10,157.50
2,919.83
Day -0.02% Month 3.84% Year 7.90% Day 0.21% Month 0.25% Year 1.17% Day 0.43% Month 4.46% Year 10.50% Day 0.91% Month 1.20% Year -0.75% Day 1.41% Month -2.46% Year -4.37% Day 1.17% Month -3.66% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,719.19 47,819.77 4,915.10 3,617.06
27,364.92
17,168.61 47,025.87 22,191.99
4,695.10 22,172.64 3,320.68 25,841.92

Day -0.10% Month 2.95% Year 0.20% Day 0.81% Month 0.78% Year -10.46% Day 0.17% Month 4.51% Year 15.31% Day 0.45% Month -1.02% Year 14.51% Day 1.36% Month 6.66% Year 47.25% Day 1.41% Month -5.04% Year -8.24%

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 13597.20 13773.89 Cyprus CSE M&P Gen 69.87 71.02 Italy FTSE Italia All-Share 23922.91 23813.36 Philippines Manila Comp 6825.38 6772.92 Taiwan Weighted Pr 8477.20 8340.47 Cross-Border DJ Global Titans ($) 239.36 238.37
Australia All Ordinaries 5293.30 5189.10 Czech Republic
PX 992.18 992.13 FTSE Italia Mid Cap 34342.82 34179.86 Poland Wig 49146.10 49345.31 Thailand Bangkok SET 1384.97 1376.82 Euro Stoxx 50 (Eur) 3451.46 3431.92
S&P/ASX 200 5242.60 5133.10 Denmark OMXC Copenahgen 20 988.99 985.80 FTSE MIB 22191.99 22091.56 Portugal PSI 20 5351.38 5378.60 Turkey BIST 100 80514.17 81152.85 Euronext 100 ID 952.68 950.38
S&P/ASX 200 Res 2640.10 2563.30 Egypt EGX 30 6413.97 6407.33 Japan 2nd Section 4722.34 4701.99 PSI General 2494.50 2496.23 UAE Abu Dhabi General Index 4260.06 4196.85 FTSE 4Good Global ($) 5541.91 5500.40
Austria ATX 2490.79 2465.12 Estonia OMX Tallinn 878.71 879.33 Nikkei 225 19859.81 19649.18 Romania BET Index 7207.01 7174.47 UK FT 30 2893.10 2869.10 FTSE All World 270.36 268.55
Belgium BEL 20 3701.84 3683.38 Finland OMX Helsinki General 8670.91 8673.70 S&P Topix 150 1330.76 1320.37 Russia Micex Index 1811.20 1810.48 FTSE 100 6329.93 6278.97 FTSE E300 1502.33 1495.83
BEL Mid 5964.74 5959.39 France CAC 40 4915.10 4906.72 Topix 1600.38 1586.53 RTX 883.82 876.56 FTSE 4Good UK 5754.43 5707.64 FTSE Eurotop 100 2994.00 2983.93
Brazil Bovespa 47819.77 47435.58 SBF 120 3855.14 3844.12 Jordan Amman SE 2000.74 1994.59 Saudi-Arabia TADAWUL All Share Index 7034.08 6953.47 FTSE All Share 3471.04 3446.61 FTSE Global 100 ($) 1340.34 1333.64
Canada S&P/TSX 60 790.00 787.00Germany M-DAX 21270.17 21138.86 Kenya NSE 20 3946.99 3946.99 Singapore FTSE Straits Times 2919.83 2886.08 FTSE techMARK 100 3885.89 3840.48 FTSE Gold Min ($) 849.44 835.25
S&P/TSX Comp 13428.92 13399.97 TecDAX 1826.79 1818.65 Kuwait KSX Market Index 5725.41 5698.10 Slovakia SAX 301.57 301.75 USA DJ Composite 6169.10 6161.21 FTSE Latibex Top (Eur) 2590.90 2575.50
S&P/TSX Met & Min 361.64 368.41 XETRA Dax 11085.44 10959.95 Latvia OMX Riga 599.60 599.50 Slovenia SBI TOP 690.65 690.87 DJ Industrial 17719.19 17737.16 FTSE Multinationals ($) 1514.35 1499.63
Chile IGPA Gen 18645.78 18496.56Greece Athens Gen 670.45 671.82 Lithuania OMX Vilnius 484.30 483.46 South Africa FTSE/JSE All Share 52116.26 51654.54 DJ Transport 8214.60 8191.33 FTSE World ($) 479.36 476.31
China FTSE A200 9649.65 9515.23 FTSE/ASE 20 200.42 200.79 Luxembourg LuxX 1485.09 1486.11 FTSE/JSE Res 20 28479.71 28156.91 DJ Utilities 566.68 562.80 FTSEurofirst 100 (Eur) 4280.65 4259.77
FTSE B35 10927.22 10780.86Hong Kong Hang Seng 22500.22 22188.26 Malaysia FTSE Bursa KLCI 1660.06 1661.53 FTSE/JSE Top 40 46851.60 46464.28 Nasdaq 100 4659.36 4653.44 FTSEurofirst 80 (Eur) 4635.60 4609.40
Shanghai A 3787.89 3737.03 HS China Enterprise 10193.11 10055.28 Mexico IPC 44599.74 44505.59 South Korea Kospi 1988.91 1962.88 Nasdaq Cmp 5074.28 5075.20 MSCI ACWI Fr ($) 406.98 403.67
Shanghai B 379.38 373.39 HSCC Red Chip 4139.63 4095.47 Morocco MASI 9179.31 9179.31 Kospi 200 244.79 241.44 NYSE Comp 10422.10 10429.60 MSCI All World ($) 1691.55 1676.10
Shanghai Comp 3617.06 3568.46Hungary Bux 23070.83 23279.89 Netherlands AEX 469.00 465.93 Spain IBEX 35 10354.70 10261.10 S&P 500 2079.71 2083.58 MSCI Europe (Eur) 1445.99 1446.83
Shenzhen A 2362.07 2291.41India BSE Sensex 25841.92 25482.52 AEX All Share 717.18 712.32 Sri Lanka CSE All Share 7020.18 6981.97 Wilshire 5000 21589.05 21638.00 MSCI Pacific ($) 2291.71 2295.46
Shenzhen B 1208.96 1196.01 S&P CNX 500 6594.55 6507.55 New Zealand NZX 50 5995.25 5979.81 Sweden OMX Stockholm 30 1512.08 1514.18 Venezuela IBC 12466.63 12449.84 S&P Euro (Eur) 1532.35 1522.53
Colombia COLCAP 1125.57 1112.05Indonesia Jakarta Comp 4518.94 4497.91 Nigeria SE All Share 28219.44 28351.28 OMX Stockholm AS 517.54 517.06 Vietnam VNI 601.90 603.34 S&P Europe 350 (Eur) 1541.77 1535.15
Croatia CROBEX 1693.34 1692.41Ireland ISEQ Overall 6687.93 6554.64 Norway Oslo All Share 668.48 668.46 Switzerland SMI Index 9008.65 8990.96 S&P Global 1200 ($) 1878.83 1869.38
Israel Tel Aviv 100 13.59 13.51 Pakistan KSE 100 33949.26 34065.87 Stoxx 50 (Eur) 3266.09 3255.03
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Nov 19 %Chg %Chg Nov 19 %Chg %Chg Nov 19 %Chg %Chg Nov 19 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 24.7 118.79 1.50 Vodafone 184.9 221.50 -1.29 Telefonica 758.4 11.80 0.02 Toyota Motor 738.0 7620.00 21.00 Johnson Matthey 2694.00 9.7 -20.9 Btg 606.00 15.2 -23.8 Primary Health Properties 109.00 296.4 18.4 Industrial Metals 836.65 8.3 -45.2
Amazon.com 14.1 666.01 2.47 Rio Tinto 159.4 2290.00 46.11 Novartis N 412.7 82.37 0.00 Mitsubishi Ufj Fin,. 540.0 835.30 8.30 Astrazeneca 4428.50 9.0 -2.5 Diploma 700.00 14.8 -1.3 Carclo 146.75 26.0 64.0 Automobiles & Parts 7056.28 7.8 -12.3
Allergan 13.5 301.10 -9.70 Lloyds Banking 155.9 73.33 0.09 Nestle N 294.2 69.61 0.00 Mizuho Fin,. 470.2 260.40 0.40 Hikma Pharmaceuticals 2110.00 9.0 6.6 Qinetiq 260.10 13.1 38.4 Chemring 186.50 11.0 -22.0 Industrial Transportation 2741.66 6.1 -3.0
Netflix 12.6 120.18 -0.46 Royal Dutch Shell 152.3 1681.50 14.50 Roche Gs 289.6 250.15 0.00 Softbank . 429.3 6575.00 -87.00 Gkn 301.80 8.0 -12.1 Atkins (ws) 1530.00 11.4 11.5 St. Ives 208.25 10.5 9.6 Construction & Materials 4924.00 5.5 19.2
Facebook Class A 12.5 107.27 -0.51 Royal Dutch Shell 141.3 1666.00 31.62 Total 278.8 46.60 -0.06 Fast Retailing Co., 345.0 48350.00 870.00 Smiths 1006.00 7.8 -8.4 Kaz Minerals 91.50 9.7 -64.7 Moss Bros 106.00 9.3 20.5 Oil & Gas Producers 6137.96 5.5 -13.8
Pfizer 12.1 32.16 -1.15 Imperial Tobacco 119.6 3492.00 -52.42 Daimler Ag Na O.n. 266.8 78.04 0.00 Sumitomo Mitsui Fin,. 294.6 4943.00 45.00 Bae Systems 484.10 7.2 3.4 Premier Oil 76.00 9.4 -54.5 Speedy Hire 34.75 8.6 -56.0 Chemicals 10698.13 5.0 -5.4
Hospira 11.8 89.95 -0.01 Bhp Billiton 118.5 888.70 8.00 Santander 261.2 5.21 0.10 Fanuc 247.7 22055.00 300.00 Royal Mail 476.70 7.2 9.9 Aggreko 992.00 9.2 -33.3 Premier Farnell 107.50 8.0 -38.9 Aerospace & Defense 4030.18 4.9 -15.2
Unitedhealth orporated (delaware) 9.6 111.61 -5.64 Bp 115.8 385.15 2.41 Royal Dutch Shella 247.4 23.91 0.31 Fujitsu 216.8 617.00 22.00 Bg 1038.50 6.8 20.2 Essentra 856.00 9.2 16.9 Oxford Instruments 646.00 7.0 -30.3 Pharmaceuticals & Biotech. 12554.44 4.4 -1.3
Sigma-aldrich 8.7 139.76 -0.05 British American Tobacco 104.1 3860.50 55.10 Intesa Sanpaolo 245.1 3.12 0.00 Nissan Motor Co., 212.4 1309.50 26.00 Crh 1875.00 6.4 20.8 Bodycote 535.00 8.9 -16.9 Charles Taylor 289.00 7.0 15.6 General Industrials 4347.17 4.0 11.6
Keurig Green Mountain 6.3 50.91 10.41 Hsbc Holdings 103.1 525.10 4.53 Ing Groep 232.6 13.29 -0.01 Japan Tobacco . 208.9 4526.00 76.00 Hammerson 612.00 6.2 1.1 Evraz 84.95 8.7 -45.0 Hogg Robinson 66.50 6.8 61.4 Oil Equipment & Services 13150.35 4.0 -20.0
Antofagasta 501.00 5.8 -32.4 Hunting 339.50 8.2 -35.1 Gulf Marine Services 100.50 6.6 0.5 Real Estate Investment Trusts 3373.66 3.4 10.5
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Royal Dutch Shell 1666.00 5.5 -22.4 Firstgroup 106.20 8.1 0.9 Tt Electronics 134.00 6.6 29.5 Electronic & Electrical Equip. 4069.89 3.2 0.8
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Keurig Green Mountain 50.91 10.41 25.70 Qinetiq 260.10 24.40 10.35 Sodexo 88.20 7.91 9.85 Sharp 126.00 6.00 5.00 Tui Ag 1130.00 -3.6 5.3 Poundland 222.70 -18.3 -32.1 Kenmare Resources 0.76 -44.9 -76.5 General Retailers 3131.05 0.0 5.3
The J.m. Smucker 122.31 8.93 7.88 Johnson Matthey 2694.00 229.85 9.35 Casino Guichard 55.03 2.04 3.85 Advantest 1110.00 52.00 4.91 Easyjet 1714.00 -3.2 3.2 Allied Minds 431.60 -8.2 19.4 Johnston Press 46.25 -26.0 -72.1 Travel & Leisure 8534.75 0.1 6.0
Salesforce.com 81.50 4.15 5.37 Investec 542.00 29.23 5.72 Caixabank 3.55 0.09 2.60 Pioneer 331.00 14.00 4.42 Burberry 1279.00 -2.6 -21.8 Spire Healthcare 284.40 -8.2 -24.3 Soco Int 143.00 -18.3 -52.9 Equity Investment Instruments 7332.88 0.4 1.3
Citrix Systems 73.41 2.87 4.07 Nostrum Oil & Gas 366.00 19.20 5.57 B. Sabadell 1.78 0.04 2.53 Dainippon Screen Mfg.co., 873.00 35.00 4.18 Carnival 3442.00 -2.3 17.9 B&m Eur Value Retail S.a. 315.00 -7.5 8.3 Hss Hire 48.25 -15.7 - Mobile Telecommunications 5093.99 0.4 1.6
Alcoa 8.71 0.30 3.57 Acacia Mining 170.80 8.79 5.43 Arcelormittal 4.94 0.12 2.45 Shiseido , 2870.50 107.50 3.89 Int Consolidated Airlines S.a. 582.50 -2.3 19.8 Bovis Homes 904.00 -5.6 2.2 Ferrexpo 29.25 -14.0 -44.8 Personal Goods 25423.35 0.6 3.3
Intercontinental Hotels 2502.00 -2.1 -3.6 Aldermore 262.30 -5.3 - Uk Mail 324.50 -12.9 -32.3 Food & Drug Retailers 2705.20 0.7 -4.4
Downs Downs Downs Downs
Glencore 94.05 -1.9 -68.5 Ophir Energy 90.60 -5.2 -36.0 Brammer 162.25 -10.8 -52.3 Beverages 15576.84 0.7 10.2
Tenet Healthcare New 29.92 -3.13 -9.47 Poundland 222.70 -55.90 -20.06 Altice B 14.38 -0.60 -4.01 Mitsui Chemicals,. 496.00 -7.00 -1.39
G4s 225.80 -1.4 -16.2 Nostrum Oil & Gas 366.00 -5.1 -13.4 Cambian 133.50 -8.6 -34.4 Real Estate & Investment Servic 3046.55 1.0 14.0
Chesapeake Energy 5.48 -0.52 -8.67 Bovis Homes 904.00 -85.00 -8.59 Altice 14.04 -0.54 -3.74 Softbank . 6575.00 -87.00 -1.31
Schroders 2955.00 -0.6 10.2 Thomas Cook 106.00 -4.7 -17.1 Trinity Mirror 160.75 -7.6 1.6 Household Goods 15780.08 1.2 23.5
Southwestern Energy 9.81 -0.74 -6.97 Ophir Energy 90.60 -6.35 -6.55 Bollore 4.29 -0.10 -2.21 Nitto Denko 8369.00 -103.00 -1.22
Persimmon 1840.00 -0.4 16.6 Bwin.party Digital Entertainment 105.90 -4.5 -10.1 Lavendon 136.75 -7.3 -22.9 Banks 3822.54 1.2 -12.5
Anthem 128.76 -8.54 -6.22 Virgin Money Holdings (uk) 353.00 -21.00 -5.61 Zodiac Aerospace 24.95 -0.44 -1.75 Obayashi 1116.00 -13.00 -1.15
Morrison (wm) Supermarkets 154.60 -0.3 -16.2 Virgin Money Holdings (uk) 353.00 -4.3 22.6 Darty 99.25 -7.0 44.9 Nonlife Insurance 2452.18 1.2 26.8
Newfield Exploration 38.56 -2.49 -6.07 Aldermore 262.30 -14.70 -5.31 Endesa 20.06 -0.32 -1.55 Kubota 2014.00 -18.00 -0.89
Whitbread 4515.00 -0.3 -5.7 Zoopla Property 225.00 -4.3 16.4 Goodwin 2240.50 -6.5 -9.3 Mining 8343.13 1.4 -41.5
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Nov 19 Currency Mid Change Mid Change Mid Change Nov 19 Currency Mid Change Mid Change Mid Change Nov 19 Currency Mid Change Mid Change Mid Change Nov 19 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 9.6529 0.0124 10.3638 0.0996 14.7640 0.1008 Indonesia Indonesian Rupiah 13777.5000 -22.0000 14792.2648 99.9081 21072.6395 83.5056 Poland Polish Zloty 3.9575 -0.0306 4.2490 0.0029 6.0530 -0.0129 ..Three Month 0.6538 -0.0036 0.7018 0.0020 - -
Australia Australian Dollar 1.3886 -0.0237 1.4909 -0.0128 2.1239 -0.0243 Israel Israeli Shekel 3.8837 -0.0174 4.1697 0.0163 5.9401 0.0066 Romania Romanian Leu 4.1409 -0.0340 4.4458 0.0009 6.3334 -0.0165 ..One Year 0.6541 -0.0037 0.7012 0.0020 - -
Bahrain Bahrainin Dinar 0.3774 - 0.4051 0.0034 0.5772 0.0032 Japan Japanese Yen 122.8050 -0.7750 131.8499 0.2740 187.8298 -0.1360 Russia Russian Ruble 64.6825 -0.3859 69.4465 0.1681 98.9316 -0.0377 United States United States Dollar - - 1.0737 0.0090 1.5295 0.0085
Bolivia Bolivian Boliviano 6.9100 0.0100 7.4189 0.0725 10.5688 0.0739 ..One Month 122.8050 -0.7751 131.8499 0.2741 187.8297 -0.1362 Saudi Arabia Saudi Riyal 3.7502 - 4.0264 0.0336 5.7359 0.0318 ..One Month - - 1.0736 -0.4474 1.5295 0.0085
Brazil Brazilian Real 3.7276 -0.0517 4.0021 -0.0217 5.7014 -0.0470 ..Three Month 122.8047 -0.7756 131.8499 0.2741 187.8294 -0.1368 Singapore Singapore Dollar 1.4138 -0.0097 1.5179 0.0024 2.1624 -0.0027 ..Three Month - - 1.0734 -0.4473 1.5295 0.0085
Canada Canadian Dollar 1.3268 -0.0076 1.4245 0.0038 2.0293 -0.0003 ..One Year 122.8035 -0.7780 131.8499 0.2740 187.8297 -0.1381 South Africa South African Rand 14.0255 -0.1970 15.0585 -0.0842 21.4520 -0.1805 ..One Year - - 1.0724 -0.4474 1.5297 0.0085
Chile Chilean Peso 711.3450 -3.4550 763.7374 2.6885 1087.9996 0.7851 Kenya Kenyan Shilling 102.2000 - 109.7273 0.9148 156.3145 0.8678 South Korea South Korean Won 1161.7500 -10.5000 1247.3159 -0.7810 1776.8926 -6.1057 Venezuela Venezuelan Bolivar Fuerte 6.3078 0.0148 6.7723 0.0722 9.6477 0.0760
China Chinese Yuan 6.3840 -0.0009 6.8542 0.0562 9.7643 0.0528 Kuwait Kuwaiti Dinar 0.3039 -0.0002 0.3263 0.0025 0.4648 0.0023 Sweden Swedish Krona 8.6632 -0.0715 9.3013 0.0014 13.2503 -0.0352 Vietnam Vietnamese Dong 22472.5000 7.5000 24127.6643 209.0831 34371.7025 202.2424
Colombia Colombian Peso 3082.0250 -18.8750 3309.0241 7.4890 4713.9460 -2.5390 Malaysia Malaysian Ringgit 4.3445 -0.0465 4.6645 -0.0106 6.6449 -0.0338 Switzerland Swiss Franc 1.0143 -0.0049 1.0890 0.0038 1.5513 0.0011 European Union Euro 0.9314 -0.0078 - - 1.4246 -0.0040
Costa Rica Costa Rican Colon 531.5800 -0.0400 570.7322 4.7154 813.0497 4.4530 Mexico Mexican Peson 16.5621 -0.1945 17.7819 -0.0588 25.3316 -0.1551 Taiwan New Taiwan Dollar 32.6295 -0.1710 35.0327 0.1100 49.9067 0.0170 ..One Month 0.9313 -0.0078 - - 1.4245 -0.0040
Czech Republic Czech Koruna 25.1730 -0.2060 27.0271 0.0060 38.5020 -0.0996 New Zealand New Zealand Dollar 1.5202 -0.0333 1.6322 -0.0218 2.3252 -0.0377 Thailand Thai Baht 35.8800 -0.1200 38.5227 0.1934 54.8783 0.1221 ..Three Month 0.9311 -0.0078 - - 1.4244 -0.0040
Denmark Danish Krone 6.9483 -0.0591 7.4601 -0.0007 10.6274 -0.0309 Nigeria Nigerian Naira 199.2300 - 213.9038 1.7832 304.7216 1.6917 Tunisia Tunisian Dinar 2.0367 -0.0121 2.1867 0.0053 3.1151 -0.0012 ..One Year 0.9301 -0.0078 - - 1.4238 -0.0040
Egypt Egyptian Pound 7.8349 0.0285 8.4119 0.1004 11.9834 0.1098 Norway Norwegian Krone 8.5989 -0.0963 9.2323 -0.0255 13.1521 -0.0734 Turkey Turkish Lira 2.8405 -0.0266 3.0497 -0.0028 4.3445 -0.0163
Hong Kong Hong Kong Dollar 7.7501 -0.0007 8.3210 0.0686 11.8538 0.0647 Pakistan Pakistani Rupee 105.4600 0.0150 113.2274 0.9599 161.3007 0.9183 United Arab Emirates UAE Dirham 3.6731 0.0003 3.9436 0.0332 5.6179 0.0316
Hungary Hungarian Forint 289.0328 -2.5564 310.3208 -0.1348 442.0746 -1.4341 Peru Peruvian Nuevo Sol 3.3545 -0.0040 3.6016 0.0258 5.1307 0.0224 United Kingdom Pound Sterling 0.6538 -0.0036 0.7020 0.0020 - -
India Indian Rupee 66.2000 -0.1150 71.0758 0.4701 101.2527 0.3872 Philippines Philippine Peso 47.1350 - 50.6066 0.4219 72.0928 0.4002 ..One Month 0.6538 -0.0036 0.7019 0.0020 - -
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 Nov 19 Nov 18 Nov 17 Nov 16 Nov 13 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 2893.10 2869.10 2873.20 2812.30 2800.60 0.00 3110.40 2575.90 Forestry & Paper 35.62 General Retailers 4.89 Pharmace & Biotech -6.03 FTSE 100 Price Change FTSE 100 Price Change
Nov 19 chge% Index Nov 18 Nov 17 ago yield% Cover ratio adj Return FT 30 Div Yield 1.72 1.74 1.73 1.77 1.78 0.00 3.93 2.74 Software & Comp Serv 25.41 Travel & Leisure 4.78 Gas Water & Multi -6.23 3I Group PLC 496.70 7.80 Kingfisher PLC 356.40 7.20
FTSE 100 (100) 6329.93 0.81 7032.84 6278.97 6268.76 6678.90 3.93 1.45 17.55 241.04 4953.33 P/E Ratio net 25.95 25.70 25.76 25.21 25.08 0.00 19.44 14.26 Nonlife Insurance 25.02 Consumer Services 4.55 Industrial Transport -6.53 Aberdeen Asset Management PLC 338.90 1.70 Land Securities Group PLC 1250 11.00
FTSE 250 (250) 17144.72 0.33 19048.56 17089.09 17084.79 15604.52 2.50 2.10 19.03 407.44 11906.40 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Household Goods & Ho 20.37 Tech Hardware & Eq 4.47 FTSE 100 Index -6.82 Admiral Group PLC 1641 11.00 Legal & General Group PLC 268.30 2.00
FTSE 250 ex Inv Co (211) 18647.73 0.33 20718.47 18587.27 18579.25 16787.12 2.52 2.22 17.90 448.16 13206.04 FT 30 hourly changes Fixed Line Telecomms 17.14 FTSE 250 Index 4.29 Food & Drug Retailer -7.06 Anglo American PLC 450.75 1.30 Lloyds Banking Group PLC 73.33 -0.67
FTSE 350 (350) 3524.59 0.73 3915.98 3499.17 3494.32 3630.05 3.68 1.53 17.79 125.45 5558.22 8 9 10 11 12 13 14 15 16 High Low Construct & Material 14.17 FTSE SmallCap Index 3.85 Utilities -8.31 Antofagasta PLC 501.00 1.00 London Stock Exchange Group PLC 2585 33.00
FTSE 350 ex Investment Trusts (311) 3502.09 0.74 3890.98 3476.52 3471.52 3610.76 3.71 1.53 17.60 125.72 2843.71 2869.1 2898.5 2904 2902.1 2901.6 2898.3 2895.4 2892.6 2894.1 2905.6 2869.1 Real Est Invest & Se 13.77 Support Services 1.24 Chemicals -10.52 Arm Holdings PLC 1084 18.00 Marks And Spencer Group PLC 519.50 4.50
FTSE 350 Higher Yield (107) 3220.88 0.64 3578.54 3200.49 3190.47 3613.45 5.42 1.28 14.43 168.80 5210.13 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Technology 12.69 Personal Goods 1.09 Banks -14.30 Ashtead Group PLC 1052 21.00 Meggitt PLC 388.40 1.90
FTSE 350 Lower Yield (243) 3493.75 0.82 3881.72 3465.41 3466.81 3291.32 1.90 2.25 23.37 67.57 3692.19 Leisure Goods 11.99 Mobile Telecomms 0.61 Electricity -15.59 Associated British Foods PLC 3504 59.00 Merlin Entertainments PLC 412.80 3.00
FTSE SmallCap (289) 4566.43 0.24 5073.51 4555.67 4554.44 4305.78 2.90 1.47 23.41 116.88 6243.75 Tobacco 10.57 Life Insurance 0.33 Automobiles & Parts -18.02
FTSE SmallCap ex Inv Co (153) 4134.37 0.09 4593.47 4130.60 4127.96 3716.49 2.82 2.05 17.24 103.96 5937.57 FX: EFFECTIVE INDICES Consumer Goods 9.67 Equity Invest Instr -0.15 Oil & Gas Producers -19.02
Astrazeneca PLC 4428.5 19.50 Mondi PLC 1494 23.00
Aviva PLC 504.00 8.00 Morrison (Wm) Supermarkets PLC 154.60 0.10
FTSE All-Share (639) 3471.04 0.71 3856.48 3446.61 3441.97 3564.14 3.65 1.53 17.94 122.31 5537.02 Financial Services 9.32 Health Care Eq & Srv -2.84 Oil & Gas -19.13
Nov 18 Nov 17 Mnth Ago Nov 19 Nov 18 Mnth Ago Babcock International Group PLC 1000.00 6.00 National Grid PLC 939.50 16.60
FTSE All-Share ex Inv Co (464) 3434.93 0.72 3816.36 3410.28 3405.42 3532.42 3.69 1.54 17.60 122.57 2835.29 Media 8.27 Electronic & Elec Eq -3.19 Aerospace & Defense -20.18 Bae Systems PLC 484.10 7.50 Next PLC 7805 -
FTSE All-Share ex Multinationals (574) 1195.40 0.39 1100.79 1190.79 1192.15 1117.88 2.78 1.59 22.63 31.43 2033.42 Australia 91.01 91.42 90.34 Sweden 78.40 78.19 79.18 Beverages 7.94 Financials -3.48 Industrial Eng -20.54 Barclays PLC 229.95 2.05 Old Mutual PLC 202.10 2.50
FTSE Fledgling (103) 7769.35 0.11 8632.10 7760.64 7757.82 6738.06 2.52 1.21 32.75 162.93 13974.10 Canada 88.46 88.58 90.57 Switzerland 157.98 158.65 160.54 Real Est Invest & Tr 7.37 Industrials -4.09 Oil Equipment & Serv -22.08 Barratt Developments PLC 577.00 -0.50 Pearson PLC 815.00 3.00
FTSE Fledgling ex Inv Co (51) 10680.43 0.29 11866.44 10649.16 10661.15 8291.31 2.72 1.51 24.36 207.13 18669.16 Denmark 105.07 105.07 106.34 UK 93.98 93.97 91.44 Food Producers 7.13 FTSE All{HY-}Share Index -4.74 Basic Materials -37.09 Berkeley Group Holdings (The) PLC 3093 -46.00 Persimmon PLC 1840 -25.00
FTSE All-Small (392) 3169.02 0.23 3520.92 3161.75 3160.88 2976.28 2.88 1.46 23.75 80.39 5563.79 Japan 125.47 125.57 126.79 USA 106.48 106.37 101.92 Telecommunications 6.76 NON FINANCIALS Index -5.18 Mining -42.34 Bg Group PLC 1038.5 17.00 Prudential PLC 1518 23.00
FTSE All-Small ex Inv Co Index (204) 3087.77 0.10 3430.65 3084.71 3082.95 2757.49 2.82 2.03 17.44 76.81 5618.54 New Zealand 110.87 111.12 113.72 Euro 84.37 84.33 87.64 Health Care -5.71 Industrial Metals & -48.21 Bhp Billiton PLC 888.70 8.00 Randgold Resources LD 4051 118.00
FTSE AIM All-Share Index (824) 730.61 0.19 811.74 729.23 728.88 717.58 1.50 0.74 90.17 8.51 785.12 Norway 85.71 85.94 87.50
BP PLC 385.15 2.65 Reckitt Benckiser Group PLC 6315 9.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3860.5 52.00 RELX PLC 1186 11.00
Oil & Gas (18) 6476.86 1.11 7196.08 6405.96 6323.89 8219.31 5.81 0.20 85.61 370.03 5423.36 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 841.50 12.50 Rio Tinto PLC 2290 29.50
Oil & Gas Producers (11) 6172.14 1.17 6857.53 6100.81 6024.59 7759.97 5.82 0.16 105.35 354.65 5345.41 Bt Group PLC 491.10 3.85 Rolls-Royce Holdings PLC 541.00 -2.00
Oil Equipment Services & Distribution (7)13821.11 -0.74 15355.88 13924.66 13615.08 22651.24 5.51 1.41 12.87 649.52 10080.72 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1886 8.00 Royal Bank Of Scotland Group PLC 315.20 -0.60
Basic Materials (30) 3048.04 1.54 3386.52 3001.76 2946.63 4907.38 6.66 1.88 7.98 198.46 2988.71 Burberry Group PLC 1279 -3.00 Royal Dutch Shell PLC 1681.5 19.00
Chemicals (8) 11455.86 4.36 12727.98 10976.90 10897.08 11508.04 2.34 2.35 18.22 237.16 9848.91 Nov 19 No of US $ Day Mth YTD Total
YTD Gr Div Nov 19 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1251 14.00 Royal Dutch Shell PLC 1666 26.00
Forestry & Paper (1) 17559.77 1.56 19509.70 17289.44 17277.69 12552.77 2.05 3.37 14.43 360.52 18240.62 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3442 42.00 Royal Mail PLC 476.70 22.50
Industrial Metals & Mining (2) 860.05 -0.62 955.56 865.43 829.08 1457.74 1.34 -18.64 -4.01 11.18 750.56 FTSE Global All Cap 7747 459.00 0.8 -0.1 -2.3 626.64
-0.2 2.5 Oil & Gas 165 337.70 1.2 1.2 -15.2 514.61 -12.3 3.9 Centrica PLC 213.60 2.00 Rsa Insurance Group PLC 440.00 6.10
Mining (19) 7993.39 1.04 8881.01 7911.41 7740.90 14311.77 7.85 1.85 6.90 616.70 4103.94 FTSE Global All Cap 7118 472.41 0.9 0.0 -2.4 633.57
-0.3 2.4 Oil & Gas Producers 117 313.04 0.9 0.9 -13.6 485.69 -10.6 3.9 Coca-Cola Hbc AG 1616 17.00 Sabmiller PLC 4018 13.00
FTSE Global Large Cap 1418 406.32 0.8 0.0 -2.5 567.43
-0.2 2.6 Oil Equipment & Services 39 325.01 2.3 2.3 -21.6 450.91 -19.4 4.1 Compass Group PLC 1075 19.00 Sage Group PLC 561.50 15.00
Industrials (117) 4307.81 1.41 4786.18 4247.93 4248.76 4149.15 2.58 1.19 32.54 107.43 4273.81
Construction & Materials (13) 5100.80 3.76 5667.22 4916.03 4947.50 3906.83 2.34 -0.83 -51.63 120.59 5211.39 FTSE Global Mid Cap 1646 610.37 0.8 -0.7 -1.1 795.47
0.6 2.0 Basic Materials 263 367.33 0.3 0.3 -15.7 537.10 -13.4 3.3 Crh PLC 1875 97.00 Sainsbury (J) PLC 253.20 -0.40
Aerospace & Defense (9) 4194.14 1.24 4659.88 4142.71 4147.72 4748.86 2.73 0.96 38.27 113.27 4335.89 FTSE Global Small Cap 4683 635.93 0.9 -0.7 -2.5 804.79
-0.9 2.0 Chemicals 124 613.10 0.0 0.0 -1.7 899.00 0.4 2.4 Diageo PLC 1902.5 17.00 Schroders PLC 2955 24.00
General Industrials (6) 3532.81 1.42 3925.11 3483.34 3518.19 3106.06 3.26 1.68 18.31 112.80 3842.70 FTSE All-World 3064 268.55 0.8 -0.1 -2.3 386.80
-0.1 2.5 Forestry & Paper 16 211.39 1.3 1.3 1.5 338.33 4.2 2.9 Direct Line Insurance Group PLC 406.00 1.70 Severn Trent PLC 2214 16.00
Electronic & Electrical Equipment (11) 5183.67 1.97 5759.29 5083.61 5097.45 4736.74 2.26 2.04 21.72 110.13 4579.79 FTSE World 2549 476.31 0.8 0.2 -2.0 921.08
0.2 2.5 Industrial Metals & Mining 67 267.11 0.9 0.9 -35.2 391.39 -33.6 3.6 Dixons Carphone PLC 459.60 -0.40 Shire PLC 4718 45.00
Industrial Engineering (14) 7585.31 0.22 8427.63 7568.74 7557.93 9197.89 3.22 1.52 20.41 243.31 8880.77 FTSE Global All Cap ex UNITED KINGDOM In 7421 471.23 0.8 0.0 -2.1 634.41
0.0 2.4 Mining 56 349.46 0.7 0.7 -38.7 511.85 -35.9 6.3 Easyjet PLC 1714 20.00 Sky PLC 1103 11.00
Industrial Transportation (8) 4074.14 2.26 4526.55 3984.16 3942.94 4028.31 3.70 0.95 28.61 135.04 3399.55 FTSE Global All Cap ex USA 5735 422.91 -0.1 -2.6 -5.4 612.57
-2.9 2.9 Industrials 536 306.80 0.6 0.6 -2.5 425.50 -0.6 2.2 Experian PLC 1217 24.00 Smith & Nephew PLC 1125 16.00
Support Services (56) 6654.70 1.03 7393.67 6586.99 6573.45 6149.52 2.34 1.51 28.27 148.46 6663.18 FTSE Global All Cap ex JAPAN 6486 467.97 0.9 -0.3 -3.3 644.45
-1.1 2.5 Construction & Materials 109 425.02 0.2 0.2 -1.5 617.50 0.5 2.1 Fresnillo PLC 699.50 9.00 Smiths Group PLC 1006 16.50
FTSE Developed 2115 433.83 0.9 0.4 -1.0 596.67
1.2 2.5 Aerospace & Defense 28 515.38 0.4 0.4 3.7 708.72 5.7 2.0 G4S PLC 225.80 -6.70 Sports Direct International PLC 707.50 5.50
Consumer Goods (40) 18202.96 0.31 20224.31 18145.98 18180.90 16395.85 2.95 1.76 19.25 517.93 12819.36
FTSE Developed All Cap 5739 454.76 0.9 0.3 -1.1 618.71
1.0 2.4 General Industrials 56 219.69 0.6 0.6 1.0 327.01 3.4 2.6 Gkn PLC 301.80 5.10 Sse PLC 1475 12.00
Automobiles & Parts (1) 7092.44 1.72 7880.02 6972.59 6869.19 7679.95 2.82 1.53 23.19 199.75 6522.49
FTSE Developed Large Cap 921 401.71 0.9 0.5 -1.3 559.99
1.0 2.6 Electronic & Electrical Equipment 69 326.04 0.4 0.4 0.2 417.53 2.0 1.8 Glaxosmithkline PLC 1347 -2.00 St. James's Place PLC 968.00 3.00
Beverages (6) 15608.27 0.64 17341.50 15509.62 15514.78 14588.53 2.25 1.79 24.82 345.76 10606.24
FTSE Developed Europe Large Cap 217 337.74 -0.2 -2.6 -4.5 531.47
-1.4 3.4 Industrial Engineering 105 552.70 0.4 0.4 -10.6 754.19 -8.7 2.5 Glencore PLC 94.05 0.74 Standard Chartered PLC 593.00 5.70
Food Producers (10) 9035.07 0.80 10038.37 8963.22 8966.86 8142.94 1.79 1.40 39.94 112.52 7518.36
FTSE Developed Europe Mid Cap 302 511.75 0.0 -1.5 2.3 731.79
4.6 2.5 Industrial Transportation 96 524.66 1.3 1.3 -12.1 724.93 -10.6 2.3 Hammerson PLC 612.00 15.00 Standard Life PLC 404.70 4.20
Household Goods & Home Construction (13)13201.98 -0.34 14668.00 13246.81 13267.03 10221.34 2.16 2.60 17.81 252.82 8956.63
FTSE Dev Europe Small Cap 714 721.26 0.0 -1.1 4.7 1004.88
7.0 2.3 Support Services 73 281.29 0.6 0.6 3.2 375.30 5.1 1.9 Hargreaves Lansdown PLC 1491 5.00 Taylor Wimpey PLC 185.30 -0.40
Leisure Goods (2) 5542.61 2.56 6158.09 5404.03 5360.85 4820.36 4.32 1.19 19.41 238.83 4694.25
FTSE North America Large Cap 323 446.00 1.6 2.2 0.3 585.70
2.3 2.2 Consumer Goods 423 416.06 0.6 0.6 2.8 589.82 4.9 2.4 Hikma Pharmaceuticals PLC 2110 62.00 Tesco PLC 172.00 1.10
Personal Goods (6) 22135.00 0.56 24592.99 22012.18 22127.95 21460.35 2.94 3.02 11.26 629.27 14265.57
FTSE North America Mid Cap 400 658.09 1.5 0.1 -3.0 810.40
-1.6 1.7 Automobiles & Parts 101 380.71 0.9 0.9 -2.3 518.76 -0.2 2.5 HSBC Holdings PLC 525.10 4.30 Travis Perkins PLC 1965 14.00
Tobacco (2) 46373.11 0.21 51522.62 46277.46 46433.02 42656.35 4.30 1.16 20.06 1994.40 28260.82
FTSE North America Small Cap 1518 662.18 1.6 -0.1 -3.9 793.36
-2.5 1.7 Beverages 48 576.09 0.6 0.6 7.1 827.85 9.5 2.4 Imperial Tobacco Group PLC 3492 -78.00 Tui AG 1130 18.00
Health Care (19) 9193.29 0.30 10214.16 9165.88 9135.39 9559.24 3.80 3.53 7.45 347.26 6702.68
FTSE North America 723 298.04 1.6 1.9 -0.3 401.12
1.6 2.1 Food Producers 106 549.22 0.7 0.7 -0.5 802.36 1.5 2.2 Inmarsat PLC 1069 9.00 Unilever PLC 2820 19.00
Health Care Equipment & Services (7) 6832.92 0.44 7591.69 6802.95 6786.51 6263.88 1.66 2.14 28.12 97.63 5787.83
FTSE Developed ex North America 1392 228.46 -0.1 -1.8 -2.1 355.04
0.6 2.9 Household Goods & Home Construction 48 394.57 0.8 0.8 -0.4 557.32 1.8 2.3 Intercontinental Hotels Group PLC 2502 37.00 United Utilities Group PLC 974.50 16.50
Pharmaceuticals & Biotechnology (12)12454.73 0.29 13837.77 12419.16 12376.84 13104.63 3.99 3.58 6.99 498.46 8066.59
FTSE Japan Large Cap 177 329.07 -0.1 1.8 7.9 411.13
9.9 1.9 Leisure Goods 28 135.34 0.5 0.5 7.4 172.97 8.4 1.3 International Consolidated Airlines Group S.A. 582.50 9.50 Vodafone Group PLC 221.50 -2.50
Consumer Services (97) 4865.49 0.68 5405.78 4832.71 4840.26 4400.65 2.25 1.65 26.94 107.50 4384.55 FTSE Japan Mid Cap 303 486.55 0.0 1.5 14.4 587.17
16.2 1.5 Personal Goods 80 604.68 0.4 0.4 3.7 817.76 5.5 1.9
Food & Drug Retailers (7) 2820.69 0.35 3133.91 2810.80 2788.07 2924.63 1.90 -1.50 -35.08 53.33 3225.48 Intertek Group PLC 2657 18.00 Whitbread PLC 4515 15.00
FTSE Global wi JAPAN Small Cap 781 512.88 -0.4 0.9 9.4 638.69
11.2 1.7 Tobacco 12 1212.92 0.5 0.5 13.0 2348.91 16.8 3.9 Intu Properties PLC 326.60 4.80 Wolseley PLC 3717 60.00
General Retailers (33) 3062.94 0.38 3403.06 3051.38 3062.13 2720.42 2.26 2.26 19.61 63.84 3345.86
FTSE Japan 480 136.50 0.0 1.7 9.2 191.62
11.1 1.8 Health Care 172 454.43 1.2 1.2 4.6 631.98 6.4 1.8 Itv PLC 267.20 -0.10 Wpp PLC 1515 7.00
Media (22) 7390.29 0.53 8210.95 7351.27 7353.02 6460.92 2.77 1.62 22.29 207.70 4362.47
FTSE Asia Pacific Large Cap ex Japan 530 536.20 -0.5 -5.1 -12.9 799.83
-10.4 3.3 Health Care Equipment & Services 61 641.94 0.9 0.9 8.7 734.75 9.6 1.0 Johnson Matthey PLC 2694 237.00
Travel & Leisure (35) 8340.93 1.09 9267.15 8250.60 8285.84 7530.01 1.91 2.14 24.57 154.89 7584.60
FTSE Asia Pacific Mid Cap ex Japan 434 731.54 -0.7 -4.4 -9.2 1052.12
-7.0 2.9 Pharmaceuticals & Biotechnology 111 345.33 1.4 1.4 3.4 499.02 5.4 2.1
Telecommunications (7) 4053.19 -0.33 4503.27 4066.81 4099.16 3679.50 4.01 0.18 135.35 148.35 4231.53 FTSE Asia Pacific Small Cap ex Japan 1430 489.93 -0.5 -3.5 -8.3 695.45
-6.1 2.8 Consumer Services 390 394.77 0.9 0.9 5.5 511.90 7.1 1.7
Fixed Line Telecommunications (5) 5608.82 0.57 6231.65 5577.19 5638.78 4362.80 2.72 1.77 20.81 105.24 4821.07
Mobile Telecommunications (2) 5086.28 -0.97 5651.09 5136.15 5165.84 5085.49 4.94 -0.44 -46.02 251.48 4757.05
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
964
2008
424.94
589.49
-0.5
-0.3
-5.0
-4.8
-12.5 673.71
-10.0 3.3 Food & Drug Retailers
-14.5 839.49
-12.1 3.2 General Retailers
54 298.89
121 531.83
1.0
0.9
1.0
0.9
-0.6 403.54
11.2 673.04
1.0
12.8
1.8
1.5
UK STOCK MARKET TRADING DATA
Utilities (8) 8342.20 1.39 9268.57 8227.53 8244.96 8983.79 4.86 1.35 15.24 326.98 8800.09 FTSE Emerging Large Cap 497 559.09 -0.3 -5.0 -14.5 801.04
-12.1 3.2 Media 91 308.11 1.1 1.1 2.4 400.22 4.0 1.7 Nov 19 Nov 18 Nov 17 Nov 16 Nov 13 Yr Ago
Electricity (3) 8464.55 1.05 9404.50 8376.50 8407.67 9936.76 6.00 1.33 12.54 504.89 11260.28 FTSE Emerging Mid Cap 452 728.75 -0.3 -4.8 -15.4 1032.72
-13.2 2.9 Travel & Leisure 124 376.42 0.7 0.7 4.5 492.74 6.1 1.7 SEAQ Bargains 4366.00 4219.00 4315.00 4478.00 4478.00 4478.00
Gas Water & Multiutilities (5) 7856.07 1.48 8728.45 7741.40 7754.62 8265.78 4.57 1.36 16.12 266.93 8300.07 FTSE Emerging Small Cap 1059 613.36 -0.3 -3.4 -13.3 842.42
-10.9 3.0 Telecommunication 91 159.88 -0.2 -0.2 -4.3 280.39 -0.7 4.1 Order Book Turnover (m) 44.65 41.59 34.68 27.05 27.05 27.05
Financials (283) 4584.50 0.61 5093.59 4556.83 4560.35 4628.16 3.58 1.88 14.83 160.25 4000.73 FTSE Emerging Europe 99 301.97 1.0 -2.1 -3.1 441.95
0.6 4.2 Fixed Line Telecommuniations 44 133.44 -0.2 -0.2 -2.6 256.10 1.7 4.6 Order Book Bargains 828294.00 776261.00 774222.00 826125.00 826125.00 826125.00
Banks (9) 3774.37 0.37 4193.49 3760.34 3746.92 4348.27 4.43 1.37 16.52 170.78 2601.79 FTSE Latin America All Cap 240 658.35 0.8 -1.6 -26.9 967.43
-25.2 3.4 Mobile Telecommunications 47 169.23 -0.2 -0.2 -6.5 268.90 -3.7 3.5 Order Book Shares Traded (m) 1262.00 1206.00 1101.00 1205.00 1205.00 1205.00
Nonlife Insurance (10) 2824.53 0.33 3138.18 2815.23 2822.18 2126.43 2.67 2.06 18.14 75.75 4746.92 FTSE Middle East and Africa All Cap 219 662.54 -0.2 -8.4 2.9 Utilities
-13.9 985.85
-11.6 163 236.22 0.2 0.2 -11.6 430.95 -8.6 4.0 Total Equity Turnover (£m) 2950.62 2741.60 - 0.00 0.00 0.00
Life Insurance/Assurance (11) 7966.71 1.27 8851.38 7866.46 7914.78 7769.99 3.81 1.59 16.55 293.04 7313.53 FTSE Global wi UNITED KINGDOM All Cap In 326 340.12 0.1 -2.7 -5.3 536.27
-2.1 3.7 Electricity 112 256.79 -0.1 -0.1 -9.4 463.57 -6.5 3.8 Total Mkt Bargains 945936.00 901897.00 10.00 1.00 1.00 1.00
Index- Real Estate Investment & Services (21) 3059.71 -0.14 3399.47 3063.88 3075.41 2592.08 2.07 5.62 8.61 58.13 7856.84 FTSE Global wi USA All Cap 2012 512.05 1.6 2.1 0.6 654.69
2.4 2.0 Gas Water & Multiutilities 51 252.44 0.6 0.6 -15.2 472.21 -12.0 4.4 Total Shares Traded (m) 4304.00 3948.00 0.00 0.00 0.00 0.00
Real Estate Investment Trusts (25) 3048.81 0.95 3387.37 3019.98 3039.01 2707.62 2.73 6.36 5.76 80.32 3593.76 FTSE Europe All Cap 1392 388.26 -0.1 -2.3 3.2 Financials
-2.5 592.42
0.4 675 205.19 0.7 0.7 -4.9 318.13 -2.3 2.9 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 8192.23 0.65 9101.93 8139.24 8150.84 6966.84 2.82 2.22 15.94 203.84 8875.98 FTSE Eurobloc All Cap 629 363.60 -0.4 -1.8 2.9 Banks
-1.3 561.22
1.4 242 183.17 0.5 0.5 -8.9 302.79 -6.1 3.4 (c) Market closed.
Equity Investment Instruments (175) 7585.78 0.36 8428.14 7558.59 7563.27 7484.30 2.63 1.06 35.89 180.16 3978.25 FTSE RAFI All World 3000 3010 5563.44 0.6 -1.3 -5.5 6991.05
-3.0 3.1 Nonlife Insurance 71 215.70 0.9 0.9 0.7 299.77 2.9 2.3
Non Financials (356) 4021.47 0.75 4468.03 3991.72 3983.34 4153.01 3.68 1.40 19.39 142.13 5622.13 FTSE RAFI US 1000 1004 9054.79 1.5 1.4 -2.6 11414.92
-0.4 2.5 Life Insurance 51 206.20 0.2 0.2 -2.3 312.23 0.1 2.8
Technology (20) 1433.48 1.30 1592.66 1415.15 1409.42 1140.10 1.35 2.10 35.43 18.71 1791.27 FTSE EDHEC-Risk Efficient All-World 3064 318.23 0.7 -0.7 2.2 Financial Services
-0.4 426.60
1.5 140 231.62 1.2 1.2 0.0 307.80 1.7 1.9 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1749.07 1.09 1943.29 1730.15 1730.68 1285.35 1.87 1.65 32.43 32.33 2289.65 FTSE EDHEC-Risk Efficient Developed Europe 519 280.65 -0.1 -1.5 2.7 Technology
0.8 408.88
3.2 186 175.85 1.2 1.2 2.2 209.59 3.8 1.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (7) 1650.65 1.46 1833.95 1626.85 1614.37 1386.45 0.91 2.87 38.36 14.25 1894.69 Software & Computer Services 84 307.57 1.3 1.3 13.3 352.88 14.5 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 102 129.95 1.2 1.2 -7.2 159.20 -5.2 2.4 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 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6312.52 6346.43 6361.80 6358.15 6358.45 6351.08 6334.88 6328.60 6329.15 6366.85 6309.62 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
FTSE 250 17148.40 17141.20 17185.68 17190.68 17186.14 17150.99 17144.22 17148.71 17145.33 17197.20 17115.78 (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,
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
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4555.47 4560.14 4564.85 4566.10 4572.83 4570.19 4570.70 4567.94 4569.23 4573.00 4555.47
FTSE All-Share 3463.28 3477.96 3486.30 3484.92 3485.08 3480.59 3473.30 3470.64 3470.80 3488.77 3461.10 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 100 Day's high:11:27:15 Day's Low08:07:30 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 5898.87(24/08/2015) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:11:36:00 Day's Low08:08:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3245.99(24/08/2015)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Aberdeen Japan Investment Trust Int 14.076L 9.125 2.62 1.54 - - - 2.6 4.5 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Assura Int 29.4 23.6 35.4 16.5 3.5 2.9 0.5 0.45 Nov 4 1 1.203 11/17 260.00 AIM FARN Faron Pharmaceuticals Oy 277.50 0.00 295.00 265.00 6413.5
1p Nil 10-12-15 11.00 9.40 Lonmin PLC 9.85 -0.65 Aurum Mining Int - - 0.089L 0.172L 0.05L 0.12L - - - - - 11/17 10.00 SCGL Sealand Capital Galaxy Ltd 12.50 - 13.90 13.90 0.0
465p Nil 10-12-15 595.60 583.40 Standard Chartered PLC 593.00 5.70 Botswana Diamonds Pre - - 0.34L 0.949L 0.16L 0.57L - - - - - 11/13 240.00 SCT Softcat PLC 295.00 15.00 296.60 240.00 58049.0
Caledonia Investments Int 58.1L 64.6 25.4 23.6 14.3 13.8 Jan 7 51.1 64.389 11/10 5.00 SEN Senterra Energy PLC 4.88 0.02 5.59 4.75 131.6
Dart Group Int 1024 902.2 146.8 71.7 79.82 38.93 0.9 0.75 Feb 1 3.15 3.557 11/09 195.00 GYM Gym Group (The) PLC 203.25 0.60 216.75 195.00 26037.4
Electrocomponents Int 626.5 616.4 19.9 57.1 3.1 9.6 5 5 Jan 13 11.75 17.306 11/06 180.00 MCS McCarthy & Stone PLC 223.00 0.75 228.00 180.00 119821.0
Euromoney Institutional Investor Pre 403.412 406.559 123.285 101.475 83.42 59.49 16.4 16 Feb 11 23.4 23 11/06 100.00 RGL Regional REIT Ltd 100.00 -0.75 104.00 99.75 27421.7
Grainger Pre 244.1 319.1 50 81.1 10.4 18.1 2.11 1.89 Feb 12 2.75 2.5 10/28 185.00 HSW Hostelworld Group PLC 0.00 0.00 3.13 2.88 0.0
Investec Int 949.897 886.105 276.647 209.042 20.1 11.6 9.5 8.5 Dec 23 21 28.389 10/26 1.00 UPL Upland Resources Ltd 0.98 -0.08 1.36 0.92 208.1
Johnson Matthey Int 5755.1 4799.9 330.2 207.8 137.9 85.6 19.5 18.5 Feb 2 69 82.889 10/22 190.00 IBST Ibstock PLC 191.50 -0.50 202.85 188.24 77653.3
Poundland Group Int 561.105 528.154 5.27 9.326 1.51 2.85 1.65 1.5 Jan 29 4.65 1.5 10/21 37.00 AIM EVG Evgen Pharma PLC 27.00 0.50 45.00 25.00 1967.5
QinetiQ Group Int 370.9 365.6 48.3 44.4 7.1 5.1 1.9 1.8 Feb 12 5.5 6.556 10/13 240.00 WPG Worldpay Group PLC 290.00 4.00 293.00 240.00 580000.0
Royal Mail Int 4395 4478 116 167 11.4 12.5 7 6.7 Jan 13 21.3 20 10/12 170.00 HSTG Hastings Group Holdings PLC 171.75 3.75 179.77 155.00 112877.1

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Friday 20 November 2015 ★ FINANCIAL TIMES 23

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) BakerHu 50.56 -1.13 70.45 44.11 1.36 -80.28 22046.36 Lyondell♦ 93.74 -0.55 107.32 70.06 3.19 9.96 42130.86
ANZ♦ 27.52 0.77 37.25 25.01 9.25 10.87 57527.86 Nokia 6.19 -0.11 7.87 5.65 2.27 15.24 24906.95 AstellasPh 1734 2.00 2047 1514.5 1.91 21.73 31372.03 AtlasCpcoB 209.70 -2.00 270.00 173.70 1.49 17.48 9445.58 BankAm 17.68 -0.17 18.48 14.60 1.14 13.12 184040.58 Marathon Ptl♦ 55.25 -0.44 60.38 37.62 1.96 8.65 29444.15
BHPBilltn 20.42 0.61 34.29 19.73 11.69 23.16 47229.4 SampoA 46.17 0.25 49.40 37.01 4.43 14.61 27700.02 Bridgestne 4505 28.00 5182 3753.5 2.76 12.62 29827.98 Ericsson 81.70 2.30 120.00 77.45 4.23 25.64 31168.46 Baxter 37.79 -0.28 43.44 32.18 4.48 11.21 20673.88 Marsh&M 55.27 -0.31 59.99 50.90 2.67 19.94 28831.5
CmwBkAu 79.14 1.30 96.69 70.15 7.75 14.42 97317.5 France (€) Canon 3758 47.00 4539 3402 4.41 18.09 40814.98 H&M 321.10 -1.40 368.50 295.20 3.08 24.24 61344.96 BB & T♦ 38.33 -0.02 41.90 34.24 2.69 14.06 29903.16 MasterCard 98.66 -0.50 101.76 74.61 0.66 30.06 108549.04
CSL 98.10 1.66 102.43 77.91 1.47 24.83 32853.86 Airbus Grpe 65.87 0.09 67.88 39.64 - - - CntJpRwy 22660 180.00 24800 16565 0.55 14.71 38011.16 Investor 324.90 9.30 363.40 264.50 2.89 15.13 28571.63 BectonDick 149.87 -1.67 154.98 128.87 1.52 38.29 31380.96 McDonald's 113.47 0.94 114.99 87.50 3.03 24.34 104191.54
NatAusBk♦ 29.72 0.93 39.71 27.51 9.31 12.36 56199.57 AirLiquide 114.95 0.45 123.95 93.01 - - - Denso 5820 -34.00 6548 4945 2.19 17.28 41897.97 Nordea Bk 96.95 2.75 115.50 85.15 6.24 10.81 45323.05 BerkshHat 204610 330.00 229374 190007 - 14.63 165965.1 McGraw Hill 96.15 0.40 109.13 84.64 1.35-259.38 25987.99
Telstra 5.43 0.09 6.74 5.06 8.19 15.25 47807.33 AXA 24.74 -0.17 25.40 17.56 - - - EastJpRwy 12275 190.00 12815 8553 1.05 21.98 39232.42 SEB 91.53 2.53 111.50 86.65 5.41 10.94 22925.82 Biogen 287.34 -4.64 480.18 254.00 - 18.59 64048.98 McKesson 184.70 -4.57 243.61 160.10 0.55 20.57 42501.84
Wesfarmers 38.70 1.24 46.95 36.65 8.85 17.29 31318.76 BNP Parib 56.47 0.28 61.00 43.14 - - - Fanuc 22055 300.00 28575 17930 3.63 20.32 36985.92 SvnskaHn 118.90 2.60 426.00 112.40 3.65 14.87 25689.81 BkNYMeln 43.77 -0.23 45.45 35.63 1.57 18.76 47838.53 Medtronic 76.00 -1.56 79.50 55.54 1.67 35.96 107434.71
Westpc♦ 31.58 0.81 40.07 29.10 8.18 13.26 73891.07 ChristianDior 176.15 -1.80 195.35 127.90 - - - FastRetail 48350 870.00 61970 40610 0.67 41.55 41762.64 Swedbank 194.10 -1.80 223.90 179.10 6.10 13.20 25362.72 BlackRock 358.68 -1.95 382.84 275.00 2.38 18.26 58820.84 Merck 54.00 -0.24 63.62 45.69 3.37 14.18 150837.36
Woolworths 23.65 0.52 34.71 23.05 7.45 13.38 21646.02 Cred Agr 11.52 0.17 14.49 9.82 - - - Fuji Hvy Ind 5131 31.00 5193 3669 2.20 11.31 32709.46 TeliaSonera 43.07 0.31 55.85 39.89 7.26 12.33 21527.45 Boeing♦ 148.90 0.62 158.83 115.14 2.35 18.53 99760.56 Metlife♦ 50.41 -0.67 58.23 44.49 2.90 9.67 56037.09
Belgium (€) Danone 64.45 0.70 67.74 51.50 - - - Hitachi 731.40 2.20 939.90 585.70 1.48 12.98 28787.04 Volvo 88.25 -1.60 120.50 76.35 3.55 18.07 16532.5 BrisMySq 67.02 -0.59 70.54 51.82 2.23 62.70 111808.55 Microsoft♦ 54.25 0.40 54.98 39.72 2.31 35.82 433344.29
AnBshInBv 116.35 -1.40 119.65 85.63 - - - EDF 15.07 0.05 24.89 14.65 - - - HondaMtr 4072 68.00 4499 3382.5 2.24 12.93 60063.81 Switzerland (SFr) Broadcom 52.40 -0.87 57.70 40.21 1.04 22.55 29396.4 Mnstr Bvrg 149.51 0.38 155.83 103.18 - 51.33 30309.04
KBC Grp 54.91 0.42 66.00 42.77 - - - Engie SA 16.58 0.14 20.57 13.80 - - - JapanTob 4526 76.00 4848 3101 2.33 19.00 73710.36 ABB 19.06 0.04 22.31 16.49 - 17.24 43499.14 CapOne 79.29 1.00 92.10 67.73 1.78 11.04 42185.87 MondelezInt 44.55 0.07 48.58 33.97 1.41 8.61 70797.41
Essilor Intl 120.70 -0.80 123.65 82.75 - - - KDDI■ 3031 14.00 8550 2519 2.05 45.97 66414.98 CredSuisse 23.47 0.04 28.94 18.57 3.07 10.52 37912.88 CardinalHlth 87.14 -1.46 91.91 74.76 1.69 21.61 28667.41 Monsanto 95.85 -0.28 126.00 81.22 2.03 20.29 42158.39
Brazil (R$)
Esslr Intl 120.70 -0.80 123.65 82.75 - - - Keyence 66800 -160.00 70100 50700 0.32 31.71 33073.31 Nestle 76.10 0.30 77.00 64.55 3.05 15.98 239228.23 Carnival♦ 51.23 0.94 54.59 41.38 2.04 28.63 30363.41 MorganStly 34.03 -0.22 41.04 30.15 1.48 20.73 65889.7
Ambev 19.30 0.13 20.46 15.00 8.08 25.44 81379.37
Hermes Intl 332.15 -2.65 365.55 258.55 - - - MitsbCp 2098 34.00 2837 1887.5 2.71 10.90 27164.86 Novartis 90.00 0.30 103.20 82.25 3.10 25.15 237544.37 Caterpillar♦ 69.34 -0.98 107.12 62.99 4.18 14.18 40372.09 MylanNV 50.96 -1.06 76.69 37.59 - 28.17 25059.43
Bradesco 25.95 0.62 33.23 22.84 3.58 9.55 17573.57
LOreal 167.50 -0.45 181.30 127.70 - - - MitsubEst 2636.5 10.50 2975 2321 0.59 46.38 29850.44 Richemont 77.70 -0.10 92.25 66.40 2.15 23.92 39989.55 CBS 51.43 0.12 63.95 38.51 1.18 16.45 22305.33 Netflix 120.18 -0.46 129.29 45.08 - 317.96 51361.39
Cielo 37.52 0.72 46.27 30.48 1.73 18.91 18990.27
LVMH 162.40 -1.20 176.60 123.50 - - - MitsubishiEle 1355.5 17.50 1718 1063 2.06 12.23 23700.42 Roche 272.30 -0.10 295.80 238.80 3.10 24.85 188619.99 Celgene 114.18 -1.60 140.72 92.98 - 56.68 90263.88 News Corp A 29.97 -0.33 39.27 22.81 1.01 7.73 35087.44
ItauHldFin 26.69 0.34 32.66 23.81 1.82 6.29 21817.11
Nmrcble-SFR 41.44 0.79 60.01 29.51 - - - MitsuiFud 3211 -17.00 3879 2951 0.90 25.48 25922.92 Swiss Re 96.70 -0.15 97.65 74.95 4.61 39.96 35343.71 CharlesSch♦ 33.11 -0.29 35.72 25.43 0.73 33.03 43590.09 NextEraE 100.23 0.53 112.64 93.74 3.06 14.24 46157.21
Petrobras 9.32 -0.20 16.26 7.66 - -3.69 18608.14
Orange 16.84 0.01 16.98 12.21 - - - MitUFJFin 835.30 8.30 936.80 604.00 2.23 7.34 96374.28 Swisscom 523.50 2.50 587.50 474.40 4.40 18.31 26737.31 ChevrnTx♦ 91.01 -1.20 118.91 69.58 4.75 19.57 171284.16 Nike 125.94 0.16 133.52 90.69 0.88 32.01 84976.24
Vale 14.57 -0.02 27.89 14.35 15.87 -6.45 12574.96
PernodRic 107.85 0.35 117.75 87.90 - - - Mizuho Fin 260.40 0.40 280.40 191.00 3.08 7.79 52737.07 Syngent 376.60 -10.90 435.20 280.00 2.99 21.51 34511.54 Cigna 129.84 -5.30 170.68 99.88 0.03 16.54 33450.41 NorfolkS♦ 93.52 1.03 117.64 72.10 2.53 16.74 27920.75
Canada (C$) Murata Mfg 19290 160.00 22220 12430 1.07 18.38 35384.02 Cisco 27.56 0.44 30.31 23.03 2.85 16.11 140176.5 Northrop 187.73 -0.41 193.99 136.49 1.61 17.93 34238.77
Renault 92.57 0.55 100.25 55.68 - - - UBS 20.00 0.25 22.57 13.58 3.93 11.80 75904.83
BCE 58.38 0.54 60.20 50.92 4.49 19.21 37367.75 NipponTT 4696 7.00 5066 3011 2.09 16.01 80165.06 Citigroup♦ 54.90 -0.08 60.95 46.60 0.22 12.25 163546.58 NXP 81.03 -0.88 114.00 70.35 - 27.72 20399.42
Safran 66.87 -0.70 72.45 47.75 - - - Zurich Fin 271.00 1.60 334.60 232.60 - 12.91 40186.01
BkMontrl♦ 76.71 0.71 84.39 64.01 4.17 11.81 37151.47 Nissan Mt 1309.5 26.00 1350 963.10 2.96 9.71 48205.52 CME Grp 95.88 -0.29 100.87 82.51 2.07 25.40 32429.8 Occid Pet 75.14 -0.63 85.19 63.60 3.95 -9.41 57387.11
Sanofi 82.42 -0.66 101.10 69.77 - - - Taiwan (NT$)
BkNvaS 60.85 0.18 71.17 52.60 5.52 11.55 55202.73 Nomura 774.80 4.90 909.20 609.30 3.07 10.39 24117.27 Coca-Cola 43.07 0.79 44.78 36.56 3.04 27.37 187332.1 Oracle 39.17 0.47 46.71 35.14 1.37 18.53 167045.49
Sant Gbn 40.91 0.60 44.84 31.83 - - - Chunghwa Telecom 100.00 1.20 101.00 91.20 4.86 19.54 23774.33
Brookfield 45.33 0.05 48.64 36.34 1.36 12.09 33517.64 Nppn Stl 2485.5 31.00 3505 2122.5 1.58 9.88 19233.93 Cognizant 65.42 0.16 69.80 50.17 - 25.42 39875.4 Pepsico 101.03 0.76 103.44 76.48 2.71 29.68 147185.63
Schneider 58.35 0.61 75.29 48.57 - - - HonHaiPrc 85.50 0.70 99.70 77.90 4.45 8.91 40977.48
CanadPcR 193.62 -1.32 245.05 172.01 0.72 21.58 22448.29 NTTDCMo 2423 7.50 2873.5 1731 2.99 19.55 80614.2 ColgtPlm 66.46 0.40 71.56 50.84 2.25 24.35 59609.44 Perrigo 155.06 -0.58 215.73 140.40 0.31 152.10 22701.1
SocGen 44.79 0.44 48.77 31.85 - - - TaiwanSem 140.50 3.50 155.00 112.50 3.20 11.97 111654.15
CanImp 100.38 0.48 107.32 83.10 4.16 11.24 30060.85 Panasonic 1421.5 17.00 1853.5 1177.5 1.19 97.10 28394.73 Comcast 62.62 0.06 64.99 50.01 1.57 19.43 131158.17 Pfizer♦ 32.16 -1.15 36.46 28.47 3.45 23.93 198041.75
Total 46.60 -0.06 50.30 36.92 - - -
CanNatRs 32.98 -0.17 43.10 25.01 2.77 83.90 27203.47 Seven & I 5804 37.00 5998 4117.5 1.30 29.33 41894.95 Thailand (THB) ConocPhil♦ 53.51 -0.97 74.68 41.10 5.53 -64.67 66065.69 Phillips66♦ 92.03 -0.51 94.12 57.33 2.33 10.64 49092.51
UnibailR 251.30 3.70 262.00 193.05 - - -
CanNatRy 78.40 -0.32 88.89 69.90 1.51 18.47 47021.17 ShnEtsuCh 7139 9.00 8529 5801 1.52 21.33 25119.58 PTT Explor 269.00 6.00 398.00 240.00 3.36 17.03 21414.28 Corning♦ 19.13 0.30 25.16 15.42 2.43 12.38 22630.49 PhilMorris 86.22 0.79 90.08 75.27 4.71 18.35 133580.27
Vinci 62.06 0.31 62.60 39.65 - - -
Enbridge♦ 49.67 -0.61 66.14 47.74 3.51-128.18 32331.75 Softbank 6575 -87.00 8100 5370 0.63 13.52 64283.56 United Arab Emirates (Dhs) Costco♦ 161.85 0.60 162.23 117.03 0.93 30.31 71131.08 PNCFin 94.88 -0.23 100.52 81.84 2.11 12.65 49140.28
Vivendi 20.26 0.09 24.83 19.05 - - -
GtWesLif 35.63 0.05 37.70 30.42 3.61 13.01 26665.33 Sony 3297 11.00 3970 2315 0.71 38.35 33887.26 Emirtestele 16.10 0.15 16.10 9.41 4.04 17.27 38120.12 CrownCstl 85.70 -0.17 89.44 74.45 3.86 55.36 28604.2 PPG Inds♦ 103.02 -1.21 118.95 82.93 1.36 23.86 27740.11
ImpOil 41.91 -0.77 55.76 40.55 1.13 21.10 26773.35 Germany (€)
SumitomoF 4943 45.00 5770 3902 3.25 12.50 56916.87 United Kingdom (p) CSX 28.31 0.04 37.99 24.47 2.43 13.94 27595.81 Praxair 115.07 -0.51 132.95 98.55 2.45 23.22 32777.17
Manulife 22.18 0.24 24.20 18.91 2.93 17.56 32953.7 Allianz 161.25 0.75 170.15 129.35 4.46 10.87 79118.8
Takeda Ph 6166 30.00 6657 4821 3.02 -30.59 39673.24 AscBrFd 3504 59.00 3524 2705.75 0.97 49.10 42428.63 CVS 92.61 -2.58 113.65 81.37 1.44 20.61 102548.64 Prec Cast 231.01 -0.19 245.05 186.17 0.05 24.04 31782.62
Potash 27.45 0.12 47.10 25.80 7.13 11.62 17274.16 BASF 77.32 0.97 97.22 63.00 3.65 14.45 76247.34
TokioMarine 4809 71.00 5504 3703 1.93 15.08 29664.38 AstraZen 4428.5 19.50 4931.68 3746 4.19 50.02 85604.46 Danaher 97.05 0.02 97.35 81.25 0.53 26.71 66506.94 Priceline 1293.53 15.03 1476.52 990.69 - 26.76 64396.7
RylBkC♦ 76.21 0.71 83.87 68.05 3.99 11.64 85299.25 Bayer 125.80 1.65 146.45 106.80 1.88 26.61 111692.11
Toyota 7620 21.00 8783 6650 3.06 10.06 212085.34 Aviva 504.00 8.00 578.68 428.40 3.59 13.19 31187.94 Deere 74.41 -0.11 98.23 71.85 3.16 11.65 24418.85 ProctGmbl 76.43 0.53 93.89 65.02 3.45 25.29 207933.37
Suncor En 37.01 -0.47 40.93 30.89 2.27 558.58 40324.87 BMW 98.73 1.28 123.75 72.05 3.08 10.97 63812.53
Mexico (Mex$) Barclays♦ 229.95 2.05 289.90 219.54 2.83 0.77 59034.76 Delphi♦ 83.01 0.94 90.57 66.10 1.22 17.32 23250.12 Prudntl 86.87 -0.51 92.60 73.19 2.70 11.22 39004.63
ThmReut 53.25 0.20 55.92 42.85 3.36 15.79 30826.37 Continental 221.00 2.50 234.25 154.75 1.48 17.38 47456.86
AmerMvl 14.10 -0.07 17.37 13.21 1.75 26.10 36190.95 BG 1038.5 17.00 1301.62 780.55 1.84 -20.06 54288.7 Delta♦ 48.73 0.98 52.00 34.61 0.84 13.90 38324.86 PublStor 234.49 1.76 235.33 178.42 2.67 38.94 40542.36
TntoDom 54.67 0.18 57.89 47.75 3.58 13.13 76400.77 Daimler 78.59 0.55 96.07 61.97 3.27 10.37 90271.13
FEMSA UBD 163.20 1.14 169.74 119.19 0.66 32.24 35259.3 BP♦ 385.15 2.65 499.25 252.55 6.99 -14.07 107871.23 DirectTV 93.55 1.36 95.51 82.04 - 16.82 47176.52 Qualcomm 48.60 0.60 75.72 47.52 3.74 14.95 73050.37
TrnCan 43.32 0.18 59.50 40.68 4.71 18.38 23147.35 Deut Bank 24.68 0.30 33.42 22.95 3.19 -7.70 36547.63
WalMrtMex■ 45.75 -0.71 47.00 28.26 1.16 35.50 48306.45 BrAmTob 3860.5 52.00 3906.73 3231.5 3.84 17.92 110074.88 DiscFinServ 57.42 0.39 66.73 50.20 1.83 11.73 24543.98 Raytheon 125.55 1.60 126.65 95.32 2.10 18.36 37802.85
ValeantPh 105.50 8.58 347.84 92.65 - 45.01 27129.67 Deut Tlkm 17.16 0.01 17.63 12.40 3.06 33.72 84847.66
BSkyB♦ 850.50 -12.00 954.00 782.50 3.80 10.88 23005.52 Disney 118.60 0.46 122.08 88.75 1.48 25.35 200179.95 Regen Pharm 583.03 -4.06 605.93 383.87 - 114.14 59315.65
DeutsPost 26.84 0.34 31.19 22.93 - 21.38 34902.38 Netherlands (€)
China (HK$) BT 491.10 3.85 493.00 372.18 2.32 18.51 62868.23 DominRes 68.70 0.22 80.89 66.52 3.74 22.53 40899.42 ReynoldsAm 46.37 0.46 49.56 31.35 2.97 17.30 66267.43
E.ON 9.12 0.23 15.46 7.08 1.61 -1.87 19595.37 Altice 14.04 -0.55 143.20 13.88 - - -
AgricBkCh 3.08 0.05 4.55 2.87 7.39 4.55 12215.92 Compass 1075 19.00 1223.36 963.00 2.52 20.87 27032.31 DowChem 53.32 0.16 53.80 35.11 3.18 14.23 61744.2 Salesforce 81.50 4.15 82.90 53.44 - -528.73 53790
Fresenius Med 79.18 -0.31 83.17 57.70 1.02 24.47 26447.54 ASML Hld 86.69 -0.06 104.85 70.25 - - -
Bk China 3.52 0.06 5.68 3.25 6.75 5.10 37979.57 Diageo 1902.5 17.00 2055 1592.5 2.81 20.11 73188.75 DukeEner♦ 67.85 0.65 89.97 65.65 4.78 19.52 46703.22 Schlmbrg 77.95 -0.60 99.21 66.57 2.46 29.17 98303.03
Fresenius SE 67.85 0.02 68.85 40.85 0.68 28.16 39697.5 Heineken 85.23 0.47 85.84 56.14 - - -
BkofComm 5.59 0.07 8.61 5.17 6.04 5.05 25253.36 GlaxoSmh♦ 1347 -2.00 1645 1227.5 5.94 6.67 100268.78 DuPont♦ 66.72 -0.38 76.61 47.11 2.74 18.98 58473.88 Shrwin-Will♦ 272.55 -0.06 294.35 218.27 0.95 25.86 25374.55
HenkelKgaA 89.84 0.90 99.44 75.00 1.51 20.96 25059.12 ING 13.29 -0.01 16.00 9.68 - - -
BOE Tech 1.92 -0.09 4.78 1.17 2.03 26.73 49.29 Glencore 94.05 0.74 339.00 66.67 12.17-218.72 20706.69 Eaton♦ 56.42 -0.46 73.82 49.21 3.83 12.94 26111.18 SimonProp♦ 191.70 1.46 208.14 170.99 3.03 35.50 59315.45
Linde 165.95 2.75 195.55 140.05 1.99 25.75 33092.57 Unilever♦ 41.32 0.22 42.75 30.28 - - -
Ch Coms Cons 10.12 0.13 17.00 6.85 2.39 8.98 5781.34 HSBC♦ 525.10 4.30 674.57 478.35 6.38 10.35 157271.94 eBay 28.80 0.05 29.69 22.11 - 11.52 34572.83 SouthCpr♦ 26.87 0.50 33.31 23.41 1.58 20.88 21103.06
MuenchRkv 184.50 1.65 206.50 154.20 4.41 9.47 33049.94 Norway (Kr)
Ch Evrbrght 3.74 0.02 5.65 3.22 6.22 4.82 3314.65 ImpTob 3492 -78.00 3648 2680 3.67 17.48 51204.76 Ecolab 117.53 -0.79 122.48 97.78 1.13 31.20 34707.02 Starbucks♦ 61.46 -0.35 64.00 38.70 1.05 33.40 91248.38
SAP 74.80 0.84 75.11 53.01 1.54 27.60 98660.2 DNB 113.70 0.70 143.00 100.90 3.55 7.87 21536.86
Ch Rail Cons 10.92 0.36 17.70 7.92 1.72 9.34 2925.5 LlydsBkg 73.33 -0.67 89.35 70.90 2.05 43.73 80142.11 EMC 25.01 -0.14 30.92 22.66 1.86 20.76 48490.32 StateSt 72.49 -0.39 81.26 63.97 1.78 16.80 29248.71
Siemens 95.83 1.58 106.35 77.91 3.48 13.72 90644.44 Statoil♦ 134.20 -2.60 161.70 113.90 5.46 -11.27 49763.81
Ch Rail Gp 6.78 0.14 12.30 4.98 1.44 11.15 3680.71 Natl Grid 939.50 16.60 965.00 806.40 4.56 16.37 53794.3 Emerson♦ 50.07 0.06 65.94 42.21 3.79 12.38 32903.01 Stryker 95.88 -1.13 105.34 88.94 1.45 30.83 36005.07
Volkswgn 125.30 5.30 254.50 95.00 4.02 9.48 39698.04 Telenor 154.50 0.90 186.10 143.70 2.50 37.11 26977.16
ChConstBk 5.54 0.14 7.98 5.02 6.79 4.89 171855.11 Prudential 1518 23.00 1761.5 1045.99 2.43 15.45 59694.64 EOG Res 82.32 -2.83 103.04 68.15 0.82 -11.71 45251.9 Sychrony Fin 31.46 -0.13 36.40 27.92 - 11.84 26232.16
China Vanke RMB 14.50 -0.17 16.25 9.14 3.50 9.83 22071.85 Hong Kong (HK$) Qatar (QR) EquityResTP 79.27 0.54 82.53 61.90 2.75 34.05 28875.04 Target♦ 70.76 0.98 85.81 68.15 2.88 15.94 44467.85
RBS 315.20 -0.60 414.00 300.30 - -14.13 55797.52
ChinaCitic 5.22 0.07 7.40 4.36 - 4.82 10023.73 AIA 47.30 0.85 58.20 38.85 0.92 21.75 73528.54 QatarNtBk 172.00 0.20 236.00 159.90 4.40 10.67 33052.79 Exelon♦ 28.23 0.11 38.93 27.49 4.44 12.42 25959.3 TE Connect 67.22 0.51 73.73 54.32 1.86 22.12 25967.48
ReckittB 6315 9.00 6450 4895 2.20 26.83 68397.49
ChinaLife 27.85 0.30 41.00 22.55 1.77 16.52 26739.71 BOC Hold 24.55 0.05 33.70 22.30 4.44 10.32 33491.18 ExpScripts 83.80 -1.02 94.61 68.06 - 25.76 56671.93 Telsa Mtrs 223.50 2.43 286.65 181.40 - -41.52 29267.62
Russia (RUB) RELX 1186 11.00 1199 988.50 2.19 27.48 -
ChinaMBank 19.86 0.08 26.85 14.44 4.22 6.95 11764.32 Ch OSLnd&Inv 26.15 -0.45 34.05 20.15 2.04 7.41 33270.88 ExxonMb♦ 80.37 -0.37 97.20 66.55 3.57 16.81 334575.37 TexasInstr 57.61 -0.35 59.99 43.49 2.38 20.19 58440.28
Gzprm neft 147.50 0.03 166.94 113.73 5.51 7.82 53984.37 RioTinto 2290 29.50 3280 2090.5 5.96 22.78 48382.18
ChinaMob 90.95 0.65 118.00 85.00 3.11 14.07 240282.36 ChngKng 53.05 0.65 77.55 50.10 - 11.49 26419.62 Facebook 107.27 -0.51 110.65 72.00 - 107.25 242390.64 TheTrvelers 114.97 0.29 115.14 95.21 2.04 10.12 34976.03
Lukoil 2534 8.00 3297.7 2053.6 2.68 13.47 33321.64 RollsRoyce 541.00 -2.00 1061 504.50 4.27 -39.79 15214.2
ChinaPcIns 32.20 0.40 47.10 24.80 1.89 15.49 11530.71 Citic Ltd 13.82 0.12 16.40 11.64 1.51 6.71 51873.47 Fedex 162.53 -0.28 185.19 130.01 0.52 43.00 45895.13 ThrmoFshr 137.33 -0.40 141.25 117.10 0.44 27.66 54808.09
MmcNrlskNckl 9670 30.00 12247 7962 13.83 12.04 23657.62 RylDShlA♦ 1666 26.00 2299.5 1497.5 7.54 100.70 100444.69
ChMinsheng 7.76 0.15 11.88 6.70 2.98 4.92 6942.38 Citic Secs 19.24 0.04 40.50 12.82 1.83 8.46 5656.02 FordMtr♦ 14.57 0.11 16.74 10.44 3.99 12.10 56776.98 TimeWrnr 70.97 -0.80 91.34 65.25 1.95 16.15 57881.81
Novatek 620.20 -11.00 646.30 398.50 9.41 56.77 29113.23 SABMill 4018 13.00 4090 2773 1.85 33.28 99517.05
ChMrchSecs RMB 22.48 0.36 40.00 12.99 1.89 12.72 16913.16 CK Hutchison 103.80 1.80 174.90 97.50 3.42 4.21 51693.8 Franklin 41.44 0.02 59.43 36.10 1.46 12.47 24922.72 TimeWrnrC 185.07 0.28 194.22 134.21 2.05 27.36 52411.37
Rosneft 271.50 -6.70 294.20 183.95 5.43 7.89 44485.11 Shire 4718 45.00 5870 4305 0.32 13.92 42726.13
Chna Utd Coms RMB 6.83 0.18 10.74 3.56 1.00 45.78 22677.39 CNOOC 8.33 0.20 13.78 7.41 6.63 7.41 47987.98 GenDyn 144.59 0.88 153.76 130.91 2.31 16.14 45708.97 TJX Cos♦ 68.51 0.17 76.93 61.35 1.05 21.37 46201.15
Sberbank 104.86 0.86 108.55 47.21 - 7.37 34995.68 StandCh 593.00 5.70 1166 570.00 9.08 13.19 23123.55
ChShenEgy 12.82 0.40 24.40 11.30 7.11 8.73 5621.8 HangSeng 143.80 2.60 162.10 125.00 3.79 10.59 35473.25 GenElectric 30.34 -0.18 30.90 19.37 3.06 58.26 306714.31 T-MobileUS 37.74 0.42 43.43 24.26 - 61.88 30797.25
Surgutneftegas 35.31 -0.31 39.80 21.82 1.92 1.36 19502.82 Tesco 172.00 1.10 252.52 155.40 0.67 -2.47 21416.81
ChShpbldng RMB 11.04 0.13 20.19 5.70 0.35-665.09 31054.88 HK Exc&Clr 208.00 2.80 311.40 162.00 1.86 36.64 32434.92 GenMills 57.10 -0.07 59.87 47.43 2.96 27.12 34127.96 UnionPac 86.51 -0.60 124.52 79.31 2.51 14.80 73889.98
Saudi Arabia (SR) Vodafone♦ 221.50 -2.50 258.00 201.25 5.07 -41.48 89956.37
ChStConEng RMB 6.81 0.06 12.52 3.72 2.56 8.60 31894.94 MTR 36.85 0.80 40.00 30.50 2.77 13.92 27838.7 GenMotors 36.24 -0.22 39.00 24.62 3.68 13.17 56395.85 UPS B♦ 103.69 0.01 114.40 93.64 2.79 23.58 72183.03
AlRajhiBnk 50.63 0.68 69.00 48.40 3.73 12.71 21938.49 WPP 1515 7.00 1616 1271 2.52 15.66 29946.86
ChUncHK 9.92 0.24 16.00 9.31 2.52 20.73 30651.78 SandsCh 27.05 - 47.50 22.85 7.15 15.15 28163.6 GileadSci 106.89 -1.24 123.37 85.95 0.81 9.73 154047.75 USBancorp 43.98 0.09 46.26 38.81 2.30 13.80 76928.81
SHK Props♦ 96.80 -0.30 137.60 93.25 2.41 9.06 36138.42 Natnlcombnk 50.98 0.48 72.75 48.80 - 11.45 27114.93 United States of America ($)
CNNC Intl RMB 10.46 0.13 14.38 4.07 - 29.02 6375.29 GoldmSchs 192.85 -0.81 218.77 167.49 1.31 12.55 82257.5 UtdHlthcre 111.61 -5.64 126.21 95.00 1.58 17.54 106376.43
Tencent 153.10 1.70 171.00 104.50 0.23 42.01 185721.34 SaudiBasic 86.52 2.08 110.50 70.25 6.00 10.89 69212.31 3M♦ 157.80 0.41 170.50 134.00 2.51 20.22 97159.5
CSR♦ 9.97 0.20 20.70 7.80 - 21.81 5623.07 Google 760.11 0.10 769.08 490.91 - 34.73 221439.7 UtdTech♦ 98.04 0.33 124.45 85.50 2.59 15.25 86963.53
SaudiTelec♦ 66.00 1.01 73.25 52.75 6.12 13.37 35198.12 AbbottLb 45.79 -0.02 51.74 39.00 2.07 26.95 68298.4
Daqin RMB 9.38 0.03 15.15 7.88 5.19 9.74 21843.78 India (Rs) Halliburton 38.00 -0.88 51.13 30.93 1.91 122.27 32520.91 ValeroEngy♦ 70.61 0.45 72.70 43.45 2.11 7.77 33998.96
Singapore (S$) Abbvie 60.26 -0.73 71.60 45.45 3.23 34.52 98509.85
Gree Elec Apl 0.26 -0.01 0.45 0.13 - -2.83 392.48 Bhartiartl 339.55 5.60 452.45 315.60 0.67 23.11 20503.26 HCA Hold 66.14 -4.07 95.49 43.91 - 13.70 26963.14 Verizon 45.59 0.21 51.03 38.06 4.91 18.10 185479.58
DBS 17.00 0.19 21.50 16.00 3.54 12.82 30088.25 Accenture 107.89 0.01 109.86 81.66 1.88 24.12 86983.44
GuosenSec RMB 21.09 0.49 34.94 7.00 0.96 12.61 27089.27 HDFC Bk 1068.9 20.30 1128 912.10 0.76 24.16 40700.9 Hew-Pack 13.69 0.05 18.66 11.03 4.70 5.69 24617.7 VertexPharm 130.54 -2.72 143.45 97.45 - -47.12 32075.93
JardnMt US$ 51.03 -0.10 67.88 45.02 2.76 12.21 35841.15 Ace 115.52 0.18 117.89 96.00 2.31 13.98 37449.44
HaitongSecs 14.66 0.26 27.90 10.00 2.13 8.90 6449.47 Hind Unilevr 794.60 1.10 981.00 744.50 1.85 36.16 25972.98 HiltonWwde 23.37 -0.04 31.60 20.93 0.30 30.58 23076.75 VF Cp 63.81 0.57 77.83 61.17 2.03 26.33 27202.78
JardnStr US$ 27.47 0.12 37.03 26.11 0.96 10.01 30650.48 Actavis 298.98 -2.94 317.72 201.91 - -39.48 117333.1
Hngzh HikVDT RMB 36.47 0.93 56.48 18.68 1.11 25.59 18027.68 HsngDevFin 1214.2 35.50 1402.3 1060.1 1.26 20.79 28942.64 HomeDep 126.85 0.31 127.20 92.17 1.64 25.24 162888.5 Viacom 52.01 -1.10 78.00 36.32 2.83 10.89 18056.13
OCBC 8.95 0.13 10.92 8.62 4.04 9.90 26053.16 Adobe 91.59 0.32 92.13 68.98 - 94.41 45685.03
Hunng Pwr 7.40 -0.03 11.90 7.23 6.39 6.88 3743.26 ICICI Bk 266.40 5.95 393.40 247.70 1.90 12.18 23372.67 Honywell♦ 104.46 0.40 107.41 87.00 2.00 18.12 80506.43 Visa Inc♦ 80.22 -0.24 81.01 60.00 0.56 34.61 156540.29
SingTel 3.87 0.07 4.57 3.43 4.54 15.86 43642.35 AEP♦ 56.03 0.62 65.38 52.29 3.82 15.39 27498.04
IM Baotou Stl RMB 4.09 0.04 7.50 2.92 - -51.58 10085.29 Infosys 1047.8 27.80 2336 932.65 3.60 18.62 36176.3 HumanaInc 164.83 -6.25 219.79 135.38 0.70 18.78 24431.75 Walgreen♦ 82.89 -1.69 97.30 66.46 1.65 20.82 90250.1
UOB■ 20.02 0.38 25.05 18.20 4.26 10.10 22689.18 Aetna 100.69 -6.17 134.40 84.92 0.98 15.29 35110.6
In&CmBkCh 4.85 0.10 7.10 4.30 6.59 5.11 54314.85 ITC 352.05 4.20 409.95 294.00 1.86 26.92 42697.24 IBM♦ 137.45 1.63 176.30 131.65 3.53 9.33 133341.64 WalMartSto 60.62 -0.32 90.97 56.30 3.15 12.93 194328.16
Aflac♦ 65.03 0.11 65.24 51.41 2.42 11.27 27748.68
IndstrlBk RMB 16.32 0.18 21.42 10.35 3.54 6.14 41361.41 L&T 1358.95 14.50 1893.8 1326 1.14 24.30 19115.93 South Africa (R) IllinoisTool 91.85 0.23 100.14 78.79 2.20 17.91 33385.7 Wellpoint 128.71 0.94 129.96 81.84 1.86 11.92 34744.16
AirProd 139.59 0.16 158.20 123.66 2.20 30.06 30009.4
Kweichow RMB 215.03 0.37 290.00 150.20 2.06 16.57 42312.07 OilNatGas 233.00 2.30 394.60 217.70 4.33 9.98 30112.25 Firstrand 50.04 2.04 58.47 46.00 4.27 11.25 20013.48 Illumina 173.93 -2.50 242.37 130.00 - 50.29 25463.35 WellsFargo♦ 55.66 -0.01 58.77 47.75 2.63 13.33 285722.78
Alexion 174.47 -2.18 208.88 142.02 - 156.50 39312.33
Midea 1.98 -0.04 2.68 1.65 4.91 12.81 54.94 RelianceIn 934.75 22.75 1067.85 796.45 1.09 11.01 45732.54 MTN Grp 143.80 5.80 250.00 132.01 9.73 7.68 18921.38 Intcntl Exch 262.21 -1.39 266.74 202.24 0.83 24.56 28775.77 Williams Cos 37.24 -0.86 61.38 33.48 6.45 82.36 27921.24
Allstate 63.23 -0.27 72.87 54.12 1.88 10.91 24489.37
New Ch Life Ins 34.05 0.30 56.55 27.05 0.76 9.31 4543.31 SBI NewA 243.90 2.90 336.00 220.15 1.46 9.90 28600.32 Naspers N 2149.18 -24.82 2194.9 1283 0.24 52.07 64305.47 Intel♦ 33.67 0.51 37.90 24.87 2.83 14.28 158888.73 Yahoo 32.99 0.01 52.26 27.20 - 127.92 31154.28
Altria 57.77 0.71 61.74 47.31 3.71 21.53 113258.84
PetroChina 5.51 0.10 11.04 5.10 3.57 19.00 15000.26 SunPhrmInds 742.50 -11.25 1200.8 724.05 - 61.45 26990.61 South Korea (KRW) Intuit 96.15 -0.47 109.21 79.63 1.02 67.65 26663.03 Yum!Brnds 71.54 0.42 95.90 66.35 2.31 33.87 30851.03
Amazon 666.01 2.47 675.96 285.25 - 951.68 312197.84
PingAnIns 44.25 0.30 62.90 29.00 1.91 11.53 42522.46 Tata Cons 2362.55 11.10 2812.1 2345 1.70 21.88 70320.77 HyundMobis 252000 1500 271500 185500 1.21 12.48 21115.26 John&John 102.08 -0.59 108.99 81.79 2.87 19.40 282449.61 Venezuela ()
AmerAir 42.69 0.94 56.20 34.10 0.95 6.07 26905.45
PngAnBnk RMB 12.50 0.08 17.50 8.75 1.41 7.84 23112.58 Indonesia (Rp) KoreaElePwr 50600 -200.00 54000 38750 1.00 7.05 27960.73 JohnsonCn 45.48 -0.03 54.52 38.48 2.31 20.66 29747.08 Bco de Vnzla 90.00 - 143.95 27.00 - - 24314.24
AmerExpr 72.15 0.00 94.89 70.21 1.54 12.72 71016.39
Pwr Cons Corp RMB 9.19 0.13 20.00 3.92 1.10 17.83 4750.48 Bk Cent Asia♦ 12950 -125.00 15600 11000 1.09 19.04 23174.23 SK Hynix 31200 650.00 51700 30050 0.95 4.97 19551.25 JPMrgnCh 67.34 -0.11 70.61 50.07 2.52 11.36 247887.28 Bco Provncl 3051 - 4400 840.00 1.14 41.17 24369.01
AmerIntGrp 61.81 -0.15 64.93 48.68 1.07 17.75 76459.74
SaicMtr RMB 19.89 0.08 29.18 14.00 6.63 7.50 34351.26 SmsungEl 1289000 8000 1510000 1033000 1.61 9.75 143476.66 Kimb-Clark 121.81 0.87 122.73 103.04 2.88 72.63 44216.35 Mrcntl Srvcs 4800 - 5900 930.00 0.17 35.36 21120.48
Israel (ILS) AmerTower 100.04 0.38 105.20 86.83 1.72 73.96 42373.96
ShenwanHong 0.19 0.01 0.41 0.17 - -2.53 61.53 Spain (€) KinderM 23.58 -0.72 44.71 22.57 7.96 43.53 52619.12
TevaPha♦ 232.70 0.80 275.90 213.20 2.21 28.79 57337.39 Amgen♦ 158.95 -1.97 181.81 130.09 1.89 18.81 119900.41
ShgPdgBk RMB 17.90 0.51 19.19 10.37 4.29 6.67 52302.09 Kraft♦ 88.19 -0.11 91.32 53.33 1.93 125.72 52233.16 Closing prices and highs & lows are in traded currency (with variations for that
Italy (€) BBVA 7.81 0.13 9.77 7.21 2.15 18.91 52864.06 Anadarko 59.31 -2.43 95.94 57.86 1.84 -5.11 30137.95
Sinopec Corp 5.06 0.11 7.79 4.46 4.91 23.31 16657.47 Kroger♦ 37.20 -0.35 39.43 27.32 0.95 19.36 36206.89 country indicated by stock), market capitalisation is in USD. Highs & lows are
Enel 4.10 0.02 4.50 3.36 3.44 55.79 41413.52 BcoSantdr 5.21 0.10 7.42 4.55 10.00 9.54 80021.96 Aon Cp 93.52 -1.50 107.08 86.38 1.19 21.16 25615.33
Sinopec Oil RMB 9.48 0.12 14.23 4.10 - -269.69 668.23 L Brands♦ 92.07 -0.16 101.11 75.11 1.79 24.38 26735.17 based on intraday trading over a rolling 52 week period.
ENI 14.93 0.08 17.66 12.98 6.75 -18.66 58254.65 CaixaBnk 3.55 0.09 4.62 3.32 2.36 28.54 21991.83 Apple 118.79 1.50 134.54 92.00 1.68 12.76 662293.57
Denmark (kr) Iberdrola 6.55 0.04 6.58 5.31 2.49 15.99 44536.35 LasVegasSd 46.03 0.04 65.35 36.53 5.37 16.39 36706.68 ♦ ex-dividend
Generali 17.69 -0.10 19.21 15.16 3.56 13.63 29569.55 ArcherDan♦ 36.96 -0.45 53.91 36.96 2.95 12.64 22055.51
DanskeBk 189.40 1.90 218.00 155.50 3.05 26.67 27493.44 Inditex 32.72 0.07 34.60 21.56 1.24 36.88 109487.7 LibertyGbl 42.47 -0.78 58.66 42.10 - -27.14 10731.97 ■ ex-capital redistribution
IntSPaolo 3.15 0.03 3.65 2.22 2.24 18.97 53692.3 AT&T 33.54 0.00 36.45 30.97 5.66 35.03 206359.61
MollerMrsk 10160 290.00 16450 9560 2.89 7.70 15562.32 Repsol 12.26 0.14 18.75 9.90 8.19 34.20 18087.69 Lilly (E)♦ 82.86 -0.79 92.85 66.56 2.43 37.13 91815.22 # price at time of suspension
Luxottica 62.70 - 67.80 39.90 1.21 36.27 32545.03 AutomData 86.45 -0.05 90.67 64.29 2.29 28.50 40222.89
NovoB 378.40 7.70 415.00 256.00 1.39 28.20 112325.92 Telefonica♦ 11.80 0.02 14.31 10.38 3.56 18.92 61626.83 Lockheed 223.75 0.53 225.47 181.91 2.71 19.67 68757.37
Unicred 5.53 0.01 6.61 4.82 2.19 14.57 35396.88 Avago Tech 123.12 -2.80 150.50 88.02 1.15 33.30 33980.97
Lowes 73.91 0.43 76.25 60.84 1.29 25.48 68383.94

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
MylanNV 50.96 52.02 -1.06 -2.04 7.76 18.0 16.58 DirectTV 93.55 92.19 1.36 1.48 - - 0.42 Nov 19 date Coupon S* M* F* price yield yield yield US Nov 19 date Coupon S* M* F* price yield yield yield US
Syngent 387.50 387.50 0.00 0.00 41.60 12.0 22.99 Altice 14.04 14.58 -0.55 -3.74 -1.73 -10.9 -28.83 High Yield US$ US$
Illumina 173.93 176.43 -2.50 -1.42 18.54 11.9 17.93 Hunng Pwr 7.40 7.43 -0.03 -0.40 -0.77 -9.4 -19.48 Windstream Services, LLC 11/17 7.88 B+ B2 BB 105.20 5.09 0.00 0.18 4.27 Burlington Resources, Inc. 02/26 6.88 A A2 A 117.81 4.72 0.00 0.56 2.46
Sberbank 104.86 104.00 0.86 0.83 10.86 11.6 18.46 Qualcomm 48.60 48.00 0.60 1.25 -3.98 -7.6 -17.81 High Yield Euro Wachovia Corporation 08/26 6.82 A A3 A+ 125.49 4.59 0.00 0.26 2.32
VertexPharm 130.54 133.26 -2.72 -2.04 13.24 11.3 12.75 GuosenSec 21.09 20.60 0.49 2.38 -1.66 -7.3 26.14 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Cummins Inc. 02/27 6.75 A+ A2 A 118.41 4.68 0.00 0.62 -
Netflix 120.18 120.63 -0.46 -0.38 11.26 10.3 18.34 LibertyGbl 42.47 43.25 -0.78 -1.80 -3.28 -7.2 -7.27 Korea Electric Power Corporation 08/27 6.75 AA- Aa3 AA- 98.59 7.05 0.00 0.10 -
Gzprm neft 147.50 147.47 0.03 0.02 12.50 9.3 4.61 HiltonWwde 23.37 23.41 -0.04 -0.17 -1.75 -7.0 -3.33 Emerging US$ FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa3 A- 118.30 4.92 0.00 0.27 -
Repsol 12.26 12.12 0.14 1.16 1.03 9.1 0.78 Sinopec Oil 9.48 9.36 0.12 1.28 -0.60 -6.0 -16.55 Peru 05/16 8.38 BBB+ A3 BBB+ 121.00 1.23 0.00 0.00 0.41 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 108.76 5.09 0.00 0.18 -
AstraZen 4428.50 4409.00 19.50 0.44 353.50 8.7 6.88 ChShpbldng 11.04 10.91 0.13 1.19 -0.67 -5.7 -4.17 Mexico 09/16 11.40 BBB+ A3 BBB+ 108.16 1.33 0.00 0.00 0.51
Brazil 01/18 8.00 BB+ Baa3 BBB- 105.43 5.28 0.00 0.00 4.46 Euro
CanadPcR 194.94 194.94 0.00 0.00 12.32 6.7 1.94 Sony 3297.00 3286.00 11.00 0.33 -200.00 -5.7 1.51 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 96.15 3.03 0.00 -0.27 -
BG 1038.50 1021.50 17.00 1.66 65.40 6.7 -3.17 Target 70.76 69.78 0.98 1.40 -4.17 -5.6 -5.25 Russia 07/18 11.00 BB+ Ba1 BBB- 119.59 3.29 0.00 -0.04 2.48
Peru 03/19 7.13 BBB+ A3 BBB+ 114.98 2.46 0.00 0.21 0.78 TeliaSonera 09/27 3.00 A- A3 A- 109.62 2.07 -0.01 -0.12 -
CanNatRs 33.15 33.15 0.00 0.00 2.05 6.6 8.88 Infosys 1047.80 1020.00 27.80 2.73 -59.80 -5.4 -4.52 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 111.58 2.12 0.00 -0.09 -
Yum!Brnds 71.54 71.12 0.42 0.59 4.42 6.6 -0.22 AirLiquide 114.95 114.50 0.45 0.39 -6.25 -5.2 4.07 Brazil 01/21 7.88 BB+ Baa3 BBB- 98.01 5.39 0.00 -0.17 3.71
Turkey 03/21 5.63 - Baa3 BBB- 107.36 4.12 0.00 0.02 2.44 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 109.44 2.06 0.00 -0.17 -
WalMartSto 60.62 60.93 -0.32 -0.52 3.67 6.4 3.02 CNNC Intl 10.46 10.33 0.13 1.26 -0.54 -4.9 -4.04
Poland 04/21 5.13 A- A2 A- 111.71 2.80 0.00 0.28 1.12 Yen
Raytheon 125.55 123.95 1.60 1.29 7.34 6.2 11.26 ChMrchSecs 22.48 22.12 0.36 1.63 -1.12 -4.7 24.34
Colombia 07/21 4.38 BBB Baa2 BBB 102.07 4.00 0.00 0.17 2.32 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Williams Cos 37.24 38.10 -0.86 -2.26 2.14 6.1 -11.14 SumitomoF 4943.00 4898.00 45.00 0.92 -245.00 -4.7 5.97
Emerson 50.07 50.01 0.06 0.12 2.82 6.0 10.16 JardnStr US$ 27.47 27.35 0.12 0.44 -1.33 -4.6 -8.92 Turkey 04/26 4.25 - Baa3 BBB- 95.98 4.80 0.00 0.07 2.54 £ Sterling
DowChem 53.32 53.16 0.16 0.29 2.89 5.7 12.53 Hermes Intl 332.15 334.80 -2.65 -0.79 -15.15 -4.4 -0.66 Emerging Euro Southern Water Services (Fin) Limited 03/26 6.64 A- Baa1 A- 128.49 3.34 -0.03 0.10 1.07
Petrobras 9.52 9.52 0.00 0.00 0.50 5.5 -3.62 Tata Cons 2362.55 2351.45 11.10 0.47 -106.25 -4.3 -4.50 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 123.28 4.06 0.01 0.18 1.80
Regen Pharm 583.03 587.09 -4.06 -0.69 30.50 5.5 11.33 PetroChina 5.51 5.41 0.10 1.85 -0.24 -4.2 -15.23 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.68 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ - BBB+ 109.83 2.99 0.00 -0.19 1.31 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 09/25 5.75 BB+ - BBB- 115.17 3.92 0.00 -0.16 1.66
Data provided by SIX Financial Information & Tullett Prebon Information. 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
Nov 19 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Nov 19 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.25 16-12-2008 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 17.02 0.17 16.85 53.29 10.88 Nov 19 Price £ Yield Day Week Month Year High Low £m
US Prime 3.25 16-12-2008 3.25 3.25 3.25 Markit IBoxx VXD 16.24 -0.12 16.36 56.32 7.04 Tr 2pc '16 100.26 0.48 9.09 2.13 2.13 -7.69 101.78 100.26 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 171.41 -0.14 -1.89 -3.86 -2.64 -4.67 VXN 17.80 0.04 17.76 46.72 11.15 Tr 1.75pc '17 101.48 0.48 -4.00 -12.73 6.67 -31.43 102.68 101.38 0.29
Euro Repo 0.05 10-09-2014 0.15 0.05 0.25 Corporates( £) 295.10 0.35 0.79 0.54 0.35 3.14 VDAX 20.56 -0.44 21.00 29.94 - Tr 5pc '18 110.01 0.60 -4.76 -13.04 11.11 -42.31 113.54 109.82 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.58 0.09 -0.52 0.04 -0.52 0.04 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.81 0.86 -3.37 -10.42 8.86 -33.33 115.07 111.42 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 212.39 0.08 0.38 -0.15 0.96 0.47 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.25 1.11 -2.63 -8.26 8.82 -26.00 119.04 114.67 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 226.59 0.19 -0.01 2.22 0.52 4.43 Tr 1.5pc '21 100.65 1.37 -2.14 -6.80 6.20 -16.97 142.92 99.91 0.08
Gilts( £) 286.92 0.36 -0.13 0.45 -0.85 4.49 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 115.49 1.42 -2.74 -7.79 5.97 -20.22 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 240.80 -0.09 -1.95 -4.01 -2.54 -3.65 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 127.59 1.77 -2.21 -6.35 4.73 -16.51 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 294.80 0.31 0.49 0.44 -0.03 2.99 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 123.72 2.02 -1.94 -5.16 3.59 -14.41 131.90 119.79 0.31
Nov 19 (Libor: Nov 18) night Day Week Month month month month year Overall ($) 225.35 0.08 -0.60 0.53 -0.60 0.53 Australia 10/18 3.25 103.11 2.14 0.01 0.00 0.30 -0.54 Tr 4.25pc '32 125.94 2.35 -1.26 -3.29 2.17 -10.98 136.85 121.93 0.35
US$ Libor 0.13100 0.000 0.000 0.004 0.20675 0.36960 0.60600 0.93585 Overall( £) 286.61 0.35 0.06 0.45 -0.60 4.02 04/26 4.25 111.23 2.99 0.01 -0.02 0.29 -0.42 Tr 4.25pc '36 127.45 2.51 -1.18 -3.46 1.21 -9.71 140.37 123.52 0.28
Euro Libor -0.18214 0.002 -0.001 0.001 -0.15071 -0.09786 -0.02571 0.07000 Overall(€) 221.91 0.14 0.11 1.56 0.58 3.16 Austria 10/18 1.15 103.64 0.05 0.00 0.00 0.00 0.00 Tr 4.5pc '42 137.20 2.58 -1.15 -3.01 0.39 -9.79 153.16 132.17 0.26
£ Libor 0.48188 0.000 -0.001 -0.002 0.50913 0.57363 0.73063 1.03400 Treasuries ($) 216.65 0.08 -0.69 0.74 -0.69 0.74 10/25 1.20 104.15 0.76 -0.01 -0.12 0.00 0.00 Tr 3.75pc '52 129.31 2.52 -1.18 -3.08 -0.79 -13.10 145.21 120.25 0.22
Swiss Fr Libor -0.003 -0.79700 -0.80100 -0.77700 -0.69500 FTSE Belgium 06/18 0.75 101.92 -0.01 0.00 0.00 0.00 0.00 Tr 4pc '60 140.56 2.48 -1.20 -2.75 -1.59 -13.89 159.23 129.15 0.21
Yen Libor 0.000 0.04143 0.07357 0.11929 0.22257 Sterling Corporate (£) 110.59 0.51 - - 0.09 -1.13 06/25 0.80 100.07 0.79 -0.02 -0.10 -0.01 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.002 -0.14600 -0.09200 -0.01500 0.07600 Euro Corporate (€) 106.54 0.14 - - 0.58 -2.41 Canada 11/17 0.25 99.26 0.64 0.00 0.00 0.00 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.51000 0.60000 0.78500 Euro Emerging Mkts (€) 979.48 13.08 - - 7.55 3.22 06/26 1.50 97.30 1.78 0.00 0.00 0.00 0.00
US$ CDs
Euro CDs
0.030
0.000
0.20000
-0.17500
0.34000
-0.12500
0.55000
-0.05500
Eurozone Govt Bond 114.58 0.28 - - 0.52 2.04 Denmark 11/18 0.25 101.63 -0.29 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 109.53 0.75 -0.02 -0.13 -0.04 -0.31
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 99.46 1.22 0.00 -0.02 0.28 0.00
Fixed Coupon Nov 19 chg % Return 1 month 1 year Yield
Nov 19 term notice month month month year Markit iTraxx 09/25 0.88 101.15 0.75 -0.01 -0.11 -0.01 0.00
1 Up to 5 Years 98.51 0.08 2366.00 -0.13 1.69 0.96
Euro -0.25 -0.15 -0.25 -0.15 -0.25 -0.10 -0.20 -0.05 -0.13 0.02 -0.01 0.14 Crossover 5Y 295.32 0.87 -10.59 -29.82 389.82 283.05 France 11/16 0.25 100.55 -0.29 0.00 0.00 0.00 0.00
2 5 - 10 Years 179.49 0.26 3236.84 -0.38 3.75 1.62
Sterling 0.40 0.55 0.40 0.55 0.46 0.56 0.55 0.65 0.71 0.86 1.01 1.16 Europe 5Y 70.97 0.88 -2.30 -7.22 95.40 68.47 11/20 0.25 101.11 0.03 0.00 -0.05 -0.06 0.00
3 10 - 15 Years 207.55 0.41 3794.92 -0.59 5.37 2.02
Swiss Franc - - - - - - - - - - - - Japan 5Y 72.15 -1.01 2.62 2.29 83.13 65.01 11/25 1.00 101.78 0.81 -0.01 -0.11 -0.03 0.00
4 5 - 15 Years 185.95 0.29 3372.08 -0.42 4.21 1.73
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 70.14 0.92 -3.11 -4.59 99.56 66.41 05/45 3.25 132.67 1.81 -0.03 -0.13 0.04 -0.47
5 Over 15 Years 296.62 0.51 4269.30 0.12 8.41 2.51
US Dollar 0.12 0.22 0.12 0.22 0.15 0.25 0.25 0.35 0.50 0.60 0.80 0.90 Germany 04/18 0.25 101.47 -0.36 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 172.18 0.31 3210.35 -0.10 4.83 2.24
Japanese Yen -0.03 0.07 -0.02 0.08 -0.05 0.15 -0.20 0.10 -0.20 0.10 -0.10 0.20 10/20 0.25 101.88 -0.13 0.00 0.00 0.00 0.00
Emerging Markets 5Y 315.01 -7.70 -3.32 -22.55 345.86 299.17 08/25 1.00 104.76 0.50 -0.01 -0.12 0.00 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 447.87 -9.20 3.22 1.76 509.34 416.39 08/46 2.50 129.57 1.32 -0.02 -0.14 0.06 -0.44
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Nov 19 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 81.86 -1.62 0.78 -0.61 94.63 75.52 Greece 07/17 3.38 96.01 5.98 -0.10 -0.57 -1.56 -1.11
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 228.00 100.00 1 Up to 5 Years 308.84 0.04 -0.44 -2.53 2359.55 -0.30 -0.94
02/26 3.00 75.38 7.03 0.02 -0.19 -0.58 -1.82 2 Over 5 years 565.55 0.26 0.25 5.29 4174.26 0.41 6.07
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.89 -0.21 0.00 0.00 0.00 0.00 3 5-15 years 428.20 0.25 -0.65 -0.80 3253.97 -0.41 0.33
03/25 5.40 138.56 1.03 -0.02 -0.11 -0.04 -0.71 4 Over 15 years 695.38 0.27 0.62 8.28 5037.77 0.74 8.93
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.42 0.15 0.01 -0.01 -0.04 0.00 5 All stocks 524.34 0.23 0.14 4.56 3919.84 0.30 5.46
11/20 0.65 100.56 0.54 0.00 -0.03 0.00 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 104.58 1.51 -0.02 -0.10 -0.07 0.00 Yield Indices Nov 19 Nov 18 Yr ago Nov 19 Nov 18 Yr ago
Crude Oil† Dec 41.56 -0.41 Corn♦ Dec 363.50 1.50 Nov 18 Nov 18 Prev return stock Market stocks
09/46 3.25 113.15 2.64 -0.02 -0.13 0.04 0.00 5 Yrs 1.21 1.25 1.43 20 Yrs 2.54 2.57 2.77
Brent Crude Oil‡ 44.07 -0.18 Wheat♦ Dec 484.75 1.00 Can 4.25%' 21 126.98 -0.194 -0.213 -0.47 5.18 69005.97 7
Japan 10/17 0.10 100.23 -0.02 0.00 0.00 0.00 0.00 10 Yrs 1.93 1.97 2.17 45 Yrs 2.50 2.53 2.90
RBOB Gasoline† Nov 1.28 0.00 Soybeans♦ Jan 855.50 -2.50 Fr 2.25%' 20 115.40 -0.952 -0.955 0.13 20.31 214469.02 14
12/20 0.05 99.95 0.06 0.00 -0.01 0.00 0.00 15 Yrs 2.35 2.38 2.57
Heating Oil† Nov 1.38 0.01 Soybeans Meal♦ Dec 285.60 0.10 Swe 0.25%' 22 108.54 -0.897 -0.882 -0.83 31.97 226610.07 7
09/25 0.40 100.98 0.30 0.00 -0.01 -0.01 0.00
Natural Gas† Nov 2.33 0.00 Cocoa (ICE Liffe)X Dec 2297.00 6.00 UK 2.5%' 16 - - - - - - -
09/45 1.40 100.27 1.39 -0.01 0.00 0.04 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Dec 3353.00 13.00 UK 2.5%' 24 337.31 -0.750 -0.729 -0.01 6.82 477123.32 25
Netherlands 04/17 0.50 101.19 -0.35 0.00 0.00 0.00 0.00 Real yield Nov 19 Dur yrs Previous Yr ago Nov 19 Dur yrs Previous Yr ago
Uranium Nov 36.75 0.00 Coffee(Robusta)X Nov 1530.00 56.00 UK 2%' 35 229.24 -0.722 -0.706 -0.48 9.08 477123.32 25
07/25 0.25 96.14 0.67 -0.01 -0.11 -0.01 0.00 Up to 5 yrs -0.80 2.47 -0.78 -1.05 -1.62 2.50 -1.61 -1.96
Carbon Emissions - - Coffee (Arabica)♥ Dec 114.15 1.10 US 0.625%' 21 101.03 0.440 0.444 -0.56 35.84 1091062.05 36
Diesel Dec - - White SugarX 401.40 10.60 New Zealand - - - - - - - Over 5 yrs -0.76 23.46 -0.75 -0.48 -0.80 23.56 -0.78 -0.53
US 3.625%' 28 131.91 0.900 0.444 -0.82 16.78 1091062.05 36
Unleaded (95R) - - Sugar 11♥ 14.64 0.14 12/17 6.00 106.72 2.63 0.02 -0.03 0.10 -1.10 5-15 yrs -0.69 9.70 -0.66 -0.67 -0.82 9.71 -0.79 -0.81
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/17 4.25 105.34 0.63 0.02 -0.02 -0.01 -0.67 Over 15 yrs -0.77 29.17 -0.76 -0.46 -0.79 29.23 -0.78 -0.49
Base Metals (♠ LME 3 Months) Cotton♥ Dec 62.11 0.56 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 101.69 1.55 -0.01 -0.07 0.02 0.00 All stocks -0.76 20.35 -0.75 -0.49 -0.81 20.52 -0.80 -0.55
Aluminium 1461.00 -10.50 Orange Juice♥ Jan 150.65 -0.50 amount.
Aluminium Alloy 1600.00 30.00 Palm Oil♣ Dec 527.00 3.25 Portugal 06/18 4.45 110.34 0.38 0.02 -0.13 -0.03 -1.03 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4614.00 9.00 Live Cattle♣ Dec 130.05 0.08 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 104.14 2.40 -0.06 -0.37 0.08 0.00
Lead 1573.50 -13.50 Spain 04/18 0.25 100.23 0.15 -0.02 -0.05 -0.04 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Jan 163.78 3.00
Nickel 8915.00 -85.00 Lean Hogs♣ Dec 54.28 0.08 Spread Spread Spread Spread 10/25 2.15 104.08 1.70 -0.03 -0.14 0.07 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 14465.00 -110.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.40 1.16 0.00 -0.02 0.28 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1500.50 -18.00 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 114.67 0.88 0.04 -0.04 0.19 -0.27 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Nov 18 Month Year Australia 2.99 2.49 0.72 Italy 1.51 1.01 -0.75 Switzerland 01/18 3.00 108.90 -1.11 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1067.75 -11.45 S&P GSCI Spt 337.90 -8.48 -34.69 Austria 0.76 0.27 -1.50 Japan 0.30 -0.20 -1.97 05/26 1.25 115.85 -0.24 0.00 0.00 0.00 0.00
Silver (US cents) 1421.00 4.00 DJ UBS Spot 82.03 -8.62 -29.75 Belgium 0.79 0.30 -1.47 Netherlands 0.67 0.17 -1.60 United Kingdom 07/18 1.25 101.09 0.84 0.00 -0.06 0.13 -0.38 Data provided by Morningstar | www.morningstar.co.uk
Platinum 844.00 -17.00 R/J CRB TR 185.12 -7.42 -30.52 Canada 1.78 1.29 -0.48 Norway 1.55 1.06 -0.71 01/21 1.50 100.51 1.40 0.00 -0.08 0.13 0.00
Palladium 544.00 -3.00 Rogers RICIX TR 2136.38 - - Denmark 0.75 0.26 -1.51 Portugal 2.40 1.90 0.14 09/25 2.00 100.76 1.91 -0.01 -0.10 0.11 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 242.93 -7.41 -34.73 Finland 0.75 0.25 -1.51 Spain 1.70 1.20 -0.56 01/45 3.50 117.61 2.63 0.00 -0.06 0.07 -0.29
Iron Ore (Platts) 45.30 -1.20 UBS Bberg CMCI TR 12.61 -8.53 -31.57 France 0.81 0.32 -1.45 Switzerland -0.24 -0.73 -2.50 United States 07/17 0.63 99.68 0.82 0.00 0.01 0.24 0.00
Iron Ore (The Steel Index) 45.10 -0.70 LEBA EUA Carbon 7.96 0.00 38.68 Germany 0.50 0.00 -1.77 United Kingdom 1.91 1.42 -0.35 10/20 1.38 98.55 1.68 0.00 -0.04 0.00 0.00
GlobalCOAL RB Index 58.50 1.50 LEBA CER Carbon 0.67 15.52 737.50 Greece 7.03 6.54 4.77 United States 2.26 1.77 0.00 11/25 2.25 99.88 2.26 -0.01 -0.05 0.00 0.00
Baltic Dry Index 504.00 -15.00 LEBA UK Power 1495.00 -28.09 -48.91 Ireland 1.03 0.53 -1.23 11/45 3.00 99.53 3.02 -0.02 0.00 0.00 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
24 ★ FINANCIAL TIMES Friday 20 November 2015

FINANCIAL TIMES SHARE SERVICE

Main Market
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence HenderGp 298.00 3.80 303.30 197.20 3.02 20.79 1618.8 Severfd 62.25 -1.25 73.00 57.00 - 1296.88 22.6 BHP Bltn 888.70 8.00 1735.68 852.50 8.96 21.40 13333.2 Town Ctr 310.00 - 336.25 260.00 3.37 6.87 8.1 Lavendon 136.75 3.75 211.50 130.02 3.36 14.42 5825.8
AvonRub 1084 -5.00 1180 668.38 0.52 24.60 105.5 ICAP 508.50 -3.00 573.00 382.40 4.33 25.25 871.9 SKF SKr 153.50 4.60 231.70 140.20 3.74 15.43 2728.5 BisichMg 75.00 - 94.75 60.15 5.33 5.77 0.8 Wkspace 920.00 -5.00 988.00 670.00 1.31 4.27 1568.4 MngCnslt 14.75 - 19.00 13.25 5.59 -71.95 6.2
BAE Sys♦ 484.10 7.50 549.00 419.30 4.23 21.87 11945.4 Indvardn SKr 154.60 -0.50 183.50 129.30 4.22 13.54 939.0 Spirax-S 2991 1.00 3767.56 2738 2.24 22.95 101.6 EVRAZ 84.95 0.30 209.90 60.30 - -1.64 1348.8 Real Estate Inv & Services MearsGp 447.25 7.25 475.00 354.75 2.24 17.29 48.8
Chemring 186.50 4.75 243.00 131.00 2.20 -21.33 163.0 ICG 595.50 18.50 712.83 485.70 4.31 9.33 814.7 Tex■ 111.50 - 130.00 86.30 5.38 7.93 14.4 Fresnillo 699.50 9.00 939.50 569.63 0.28 147.89 1351.0 Cap&Count 434.40 5.00 475.10 341.10 0.34 6.38 873.2 MenziesJ♦ 393.00 -2.00 525.00 306.25 4.12 34.94 28.2
Cobham 290.10 3.90 349.10 250.50 3.67 -168.47 1731.9 IPF 370.40 -0.10 512.00 348.00 3.24 10.77 369.5 Trifast 119.00 -1.75 134.00 93.50 1.76 14.24 59.0 GemDmnd 102.75 -0.25 189.13 94.75 3.09 8.42 56.3 Cardiff 1045 - 1089 950.00 1.24 4.53 0.4 MichaelPge 504.50 6.00 568.00 383.10 2.18 24.41 212.6
Meggitt 388.40 1.90 593.50 337.60 3.54 16.16 1780.0 Investec 542.00 31.00 649.50 482.40 3.60 20.10 1247.5 Vitec 611.00 -4.50 670.85 587.00 3.93 24.18 150.7 Harmony R 8.96 0.46 38.50 8.10 - -0.76 1600.3 CLS 1727 -33.00 2037 195.00 - 3.68 3.8 MITIE 329.50 1.60 341.00 263.90 3.43 34.81 660.2
RollsRoyceX 541.00 -2.00 1061 504.50 4.27 -39.79 12759.4 Jupiter 463.00 -0.40 481.30 338.79 2.85 13.85 597.7 Weir 1131 -11.00 2117 995.50 3.89 - 909.2 Hochschild 57.75 2.50 134.25 54.47 - -4.02 422.8 Daejan 5825 -80.00 6614.2 4913 1.41 4.26 5.1 PayPoint 995.50 3.50 1112.15 779.82 3.65 17.36 70.2
Senior♦ 239.40 6.80 361.70 215.60 2.35 16.10 1053.3 Liontrust♦ 297.50 -7.50 393.50 258.50 2.69 22.06 5.6 Kenmr 0.76 -0.10 6.98 0.75 - -0.34 14769.6 DvlptSec♦ 234.25 -4.75 293.00 205.00 2.52 11.06 80.8 PremFarn 107.50 3.25 204.60 96.50 9.67 9.05 604.2
Man 166.00 2.00 217.80 133.90 3.84 11.25 2696.9
Industrial General Lonmin 9.85 -0.65 194.00 8.30 - -1.29 8024.5 Rentokil 156.40 1.00 157.40 112.80 1.66 21.90 1767.9
UltraElc 1903 2.00 1942 1627 2.33 -166.94 118.3 Grainger 245.50 2.10 256.00 180.00 1.02 28.47 758.9
NB GFRIF♦ 92.55 -0.10 99.75 92.05 4.02 23.69 1466.4 BritPoly 733.50 - 755.00 610.50 2.18 11.79 0.3 Petra♦ 60.25 2.30 210.80 52.77 - 10.31 3876.3 Ricardo 880.00 27.50 967.50 605.50 1.77 25.03 110.9
HelclBar 457.25 17.25 460.00 342.00 1.50 7.52 130.9
Automobiles & Parts Paragon 402.50 -18.90 461.50 360.20 2.24 12.39 1303.1 JardnMt $X 51.03 -0.10 67.88 45.02 2.76 12.21 240.8 Petropvlsk 5.69 -0.02 22.25 4.21 - -0.83 602.2 HK Land $ 7.31 0.11 8.80 6.40 2.53 13.84 2775.7 RbrtWlts 385.00 - 478.00 270.00 1.56 22.45 19.4
FordMtr $X♦ 14.57 0.11 16.74 10.44 3.98 12.10 14463.6 Providnt♦ 3600 32.00 3648 2143 2.72 26.87 277.2 Jard Str $X 27.47 0.12 37.03 26.11 0.96 10.01 42.8 PolymtIntl 570.00 -9.50 634.00 424.20 2.38 -17.58 264.5 RPS 237.00 - 271.37 181.50 3.57 16.76 139.5
Macfrlne 49.50 - 53.00 35.00 3.33 12.01 206.7 Lon&Assc 28.50 -0.50 42.52 27.55 0.55 -4.02 36.4
GKN 301.80 5.10 389.00 248.56 2.78 33.59 4398.6 RathbnBr 2184 -46.00 2348 1899 2.38 28.13 11.6 RndgldRs 4051 118.00 5752.1 3546 0.96 29.44 482.9 MacauPrp 159.50 -5.50 250.00 155.00 - -3.77 75.6 Shanks 96.25 -0.50 113.50 88.00 3.58 -50.42 166.4
Record 29.13 - 41.00 27.73 5.15 11.00 6.5 REXAM 560.50 6.00 592.50 424.60 3.16 19.83 2220.9 RioTintoX 2290 29.50 3280 2090.5 5.96 22.78 6959.3 SIG 127.30 0.10 212.20 117.00 3.46 22.81 871.1
Banks RPC 703.50 2.50 712.50 490.00 2.02 33.82 825.6 Mntview 11375 - 12900 7950 2.20 13.94 0.2
S&U 2387 -0.50 2595 1920 2.76 14.20 0.4 Troy Res A$ 0.23 -0.01 0.77 0.23 - -0.47 936.3 Q'tainEst 141.25 -1.25 147.75 79.48 - 19.62 1.0 SpeedyHr 34.75 0.50 80.50 27.94 2.01 -12.64 194.7
ANZ A$X♦ 27.52 0.77 37.25 25.01 9.25 10.87 9053.0 Smith DS 413.50 6.40 423.70 278.63 2.54 25.21 1925.5
Schroder 2955 24.00 3441 2493 2.64 18.14 247.0 VedantaRs 391.50 -5.90 841.00 353.21 10.63 -0.77 793.0 RavenRuss 43.50 -0.25 61.00 37.25 - -3.07 142.2 St Ives 208.25 -0.25 210.00 156.68 3.43 59.79 63.0
BcoSant 365.25 8.50 604.00 335.57 10.03 9.53 502.4 Smiths♦ 1006 16.50 1243 916.50 4.03 16.30 1736.7
..N/V 2250 2.00 2629 1916 3.47 13.81 24.8 RavenR Prf♦ 129.50 -2.00 146.00 101.50 9.27 - 38.3 TribalGrp 77.00 - 188.00 65.00 2.34 -13.10 5.7
BnkGeorgia 1871 -35.00 2345 1609 2.45 9.39 25.6
SVG Cap 466.90 -0.10 535.00 410.00 - 11.65 125.0 SmurfKap € 25.60 -0.02 30.31 17.13 2.46 19.22 294.6 Oil & Gas Vp 737.50 10.00 816.00 581.57 2.09 15.69 2.5
BankIre € 0.33 0.01 0.39 0.07 - 14.74 14977.8 Vesuvius 350.90 11.80 530.00 323.60 4.60 9.87 1339.9 Afren 1.79 -0.05 114.22 1.28 - - 9090.3 RavenR Wrt 26.50 -0.50 38.50 25.00 - - 0.0
TullettPre 347.30 -10.00 415.90 242.60 4.85 7.42 329.7 Safestre 329.00 -1.00 335.90 217.00 2.26 6.76 263.6 Watermn 85.25 0.25 91.00 53.10 1.64 19.38 3.0
BkNvaS C$X 60.85 0.18 71.17 52.60 5.52 11.55 886.1 Aminex 1.90 0.08 2.92 1.55 - -22.35 21596.5
Tungsten 43.00 -0.50 308.18 41.00 - -1.63 148.4 Industrial Transportation Savills 876.50 -15.00 991.46 592.00 1.25 20.49 150.1 Wolseley♦ 3717 60.00 4398 3425 2.29 30.12 533.7
BarclaysX♦ 229.95 2.05 289.90 219.54 2.83 0.77 28447.5 BGX 1038.5 17.00 1301.62 780.55 1.84 -20.06 9106.9
WlkrCrip 47.25 5.25 55.00 37.50 3.60 28.11 110.8 BBA Aviat 196.10 -1.80 259.11 181.40 3.78 16.27 1128.1 SchroderRE♦ 59.75 0.50 63.00 56.10 4.15 7.31 312.2
CanImp C$X 100.38 0.48 107.32 83.10 4.16 11.24 418.6 BPX♦ 385.15 2.65 499.25 252.55 6.99 -14.07 30064.0 Tech - Hardware
HSBCX♦ 525.10 4.30 674.57 478.35 6.38 10.35 19629.9 Food & Beverages Braemar♦ 446.25 -9.75 513.86 390.00 5.83 21.25 6.7 Cadogan 9.38 - 13.25 8.25 - -0.57 1.0 Smart(J) 106.50 - 114.80 87.50 2.78 44.25 5.0 ARM Hldgs 1084 18.00 1332.5 811.50 0.71 48.05 3989.8
LlydsBkgX 73.33 -0.67 89.35 70.90 2.05 43.73 212597.9 AngloEst 578.50 -16.25 683.10 521.00 0.52 -45.17 2.5 Clarkson 2205 5.00 2855 1835 2.72 45.45 9.7 CairnEng 146.80 -1.40 210.00 135.20 - -2.40 736.9 StModwen 424.30 4.90 499.40 363.17 1.08 4.00 167.5 CSR 899.50 0.50 900.00 550.00 1.02 25.43 2323.5
RylBkC C$X♦ 76.21 0.71 83.87 68.05 3.99 11.64 1337.6 AscBrFdX 3504 59.00 3524 2705.75 0.97 49.10 572.2 Eurotunnl € 12.19 -0.09 14.57 10.01 1.49 59.49 1086.1 Cape 249.50 2.50 278.00 177.00 5.61 13.73 137.3 UNITE Gp 630.00 -12.50 706.00 432.80 1.78 5.08 505.7 Laird♦ 346.80 2.30 413.30 289.10 3.60 16.87 440.6
RBSX 315.20 -0.60 414.00 300.30 - -14.13 8835.5 Barr(AG) 525.00 -2.50 699.36 513.00 2.31 19.94 54.5 Fisher J 919.50 -14.50 1442 894.50 2.39 11.91 25.8 EnQuest 23.50 -0.75 71.50 21.50 - -2.06 4455.0 Urban&C 277.75 4.50 280.53 232.00 0.54 9.05 6.6 Pace 379.80 1.90 520.80 316.34 1.15 10.88 596.7
StandChX 593.00 5.70 1166 570.00 9.08 13.19 7377.4 Britvic 721.00 -1.00 788.00 632.00 2.90 17.91 453.6 Flybe Grp 91.50 1.50 113.04 52.00 - 30.50 1071.9 ExxonMb $X♦ 80.39 -0.35 97.20 66.55 3.57 16.81 5222.7 SpirentCM 69.00 1.00 98.75 65.95 3.57 76.41 331.3
Goldenpt 56.00 -1.50 273.00 55.00 - -0.20 3.5
Retailers
..7.375%Pf 106.50 - 128.00 104.75 6.92 - 191.4 C&C €♦ 3.76 0.04 4.08 3.16 3.18 -13.55 9.5 GenelEgy 252.75 -4.25 814.50 248.50 - -3.10 875.1 AA 270.90 -0.40 434.50 255.00 - -162.12 1178.9
..8.25%Pf 119.00 -0.25 141.00 117.00 6.93 - 77.0 CarrsGroup 169.75 0.63 178.50 136.00 2.00 13.04 50.8 OceanWil♦ 772.50 12.50 1066 722.00 5.18 71.01 59.5 GeoPark $ 3.29 0.07 8.33 2.70 - -1.76 0.7
Tech - Software & Services
RoyalMail 476.70 22.50 532.50 388.60 4.20 14.67 6753.4 AO World 159.10 0.60 240.00 118.60 - -266.05 928.3 Anite 125.75 - 129.75 69.25 1.51 39.36 4191.0
TntoDom C$X 54.67 0.18 57.89 47.75 3.58 13.13 967.5 Coca-Cola H 1616 17.00 1631.25 1051 3.13 25.67 351.1 GrnDnGas 255.00 -1.00 475.00 240.00 - 20.72 0.6 AshleyL 27.50 - 36.00 25.00 7.27 10.70 249.9
VirginMoney 353.00 -21.00 472.90 278.00 - -882.50 1825.8 Cranswk 1691 21.00 1760 1280 1.93 20.18 29.0 UK Mail 324.50 4.50 569.00 300.00 6.72 21.50 23.6 GulfKeyst 25.75 0.25 81.65 20.25 - -1.22 1112.9 AVEVA 2091 49.00 2344 1183.9 1.46 47.29 72.3
Brown N 350.00 0.30 400.00 276.85 4.07 23.55 1008.9 Computcnt 780.00 11.50 802.40 651.67 2.54 8.49 40.8
Westpc A$X♦ 31.58 0.81 40.07 29.10 8.18 13.26 7008.9 Dairy Cr 615.50 0.50 656.50 437.90 3.53 44.50 165.3 Insurance HellenPet € 4.90 -0.06 5.65 3.35 - -20.32 61.7 Caffyns 575.00 - 665.00 501.00 3.26 1.74 0.8
Devro 298.50 -2.50 328.00 264.54 2.95 53.33 19.9 Hunting 339.50 -8.50 714.00 306.16 5.82 -21.35 525.0 DRS Data 12.00 - 14.90 11.25 - -5.06 2.5
Basic Resource (Ex Mining) Admiral 1641 11.00 1672 1202 2.82 15.64 688.2 Card Factor♦■ 365.30 9.70 401.50 223.24 1.86 21.27 207.5 Elecdata 64.50 - 76.50 62.25 3.10 21.46 1.3
Glanbia € 17.25 0.04 19.59 11.39 0.64 31.46 40.0 Amlin 657.00 -1.00 663.50 427.12 1.23 14.32 4593.3 ImpOil C$X 41.91 -0.77 55.76 40.55 1.13 21.10 140.9 Dairy Fm $ 6.07 0.05 9.77 5.89 3.69 18.08 408.6
Ferrexpo 29.25 -3.00 83.00 28.15 14.35 3.00 1137.8 MicroFoc 1277 4.00 1442 1012 2.39 34.70 612.3
Grncore 326.30 2.90 359.40 253.40 1.67 22.04 527.1 AvivaX 504.00 8.00 578.68 428.40 3.59 13.19 6733.6 IE Hldgs 88.00 -9.00 216.00 67.00 - -3.00 174.4 Debenhm 81.00 -0.50 96.80 68.00 4.20 11.02 5253.6
IntFerMet# 0.90 0.06 5.61 0.76 - -0.55 562.4 NCC Grp 286.25 0.75 294.25 192.25 1.28 36.49 44.4
HiltonFd♦ 519.00 -4.00 535.00 368.00 2.56 20.70 2.7 Beazley 384.60 -2.30 389.10 253.61 2.45 13.38 492.0 JKX 28.75 - 39.40 10.23 - -0.76 55.1 Dignity 2438 -19.00 2643 1527.06 0.82 -28.02 47.3
Mondi 1494 23.00 1614.36 985.50 1.99 19.37 1007.0
Kerry € 74.08 0.69 74.49 54.11 0.80 24.71 36.0 Nostrum 366.00 21.50 683.50 333.40 4.63 15.22 621.8 RM 165.50 0.50 185.00 137.50 2.42 10.41 0.0
Vale BRLX 14.57 -0.02 27.89 14.35 15.87 -6.45 2387.1 Chesnar 336.00 -1.50 367.81 309.25 5.48 13.17 292.6 DixonsCar 459.60 -0.40 490.80 398.90 - 21.68 1973.6 Sage 561.50 15.00 584.00 363.39 2.16 30.74 1976.7
Nestle SFrX 76.10 0.30 77.00 64.55 3.05 15.98 4226.6 DirectLine 406.00 1.70 410.20 299.96 3.55 12.72 3917.1 OphirEgy 90.60 -6.35 191.30 78.00 - -2.09 2631.1 Dunelm♦ 958.00 -2.00 970.50 800.00 2.14 20.26 59.5 SDL 430.00 - 472.00 315.00 0.58 40.84 30.2
Chemicals PremFds 38.75 -1.50 47.79 29.50 - -1.52 1331.6 Eccles prf 137.25 1.75 146.00 124.50 6.28 - 78.9 Petrofac 788.50 -11.50 1203 594.00 5.38 -21.33 1144.9 Findel 237.50 -2.00 255.00 162.00 - -32.99 11.1
PureCircle 400.00 -7.00 590.00 352.24 - 253.97 22.7 PremOil 76.00 1.50 245.50 60.60 - -0.81 6126.9 Telecity 1185 -11.00 1250 940.00 1.14 94.15 343.7
Alent 502.00 1.00 502.00 315.20 1.82 23.33 1251.6 Hansard 111.50 1.25 120.06 80.00 7.62 10.28 31.1 Halfords 383.30 -2.50 563.51 381.90 3.81 11.50 714.5
REA 261.00 - 401.75 244.00 2.95 54.68 0.0 RylDShlAX♦ 1666 26.00 2299.5 1497.5 7.54 100.70 8482.0 TriadGp 35.50 -0.50 43.00 9.25 - 12.40 7.8
Bayer €X 125.80 1.65 146.45 106.80 1.88 26.61 1713.0 Hiscox 1005 1.00 1017 671.50 2.34 12.34 193.7 Inchcape 789.50 4.00 906.65 673.50 2.55 21.25 305.1
Carclo 146.75 5.25 169.75 87.00 1.87 49.05 126.6 SABMillX 4018 13.00 4090 2773 1.85 33.28 1870.7 JardineL 890.00 -9.00 1112 836.00 3.25 17.40 40.5 ..B♦ 1681.5 19.00 2408.5 1502.5 7.47 101.64 9058.5 JDSportsF 962.50 7.50 989.34 433.20 0.73 22.17 162.9 Telecommunications
Croda 2835 46.00 3150 2412 2.31 22.07 221.8 StckSpirit 180.50 -0.25 262.50 172.00 0.98 27.02 81.8 Lancashire 746.00 -1.50 755.00 506.00 1.20 10.49 487.8 Schlmbrg $X 77.76 -0.79 99.21 66.57 2.47 29.10 4177.9 Lookers♦ 176.00 0.90 185.30 124.50 1.61 14.36 237.0 BTX 491.10 3.85 493.00 372.18 2.32 18.51 13228.7
Elemntis 240.00 4.10 324.10 206.70 2.21 10.43 748.9 Tate&Lyl 594.00 -13.00 682.50 492.20 4.71 61.64 2211.2 Leg&Gen 268.30 2.00 296.02 229.95 4.19 15.63 8617.5 SEPLAT 74.50 1.00 179.00 66.00 13.10 7.53 1043.4 Marks&Sp♦ 519.50 4.50 600.00 440.10 3.46 19.90 4379.8 Inmarsat 1069 9.00 1079 717.08 3.01 23.28 1474.2
Syngent SFrX 376.60 -10.90 435.20 280.00 2.99 21.51 341.4 TongtHu R 101.00 1.00 174.50 95.40 4.49 9.79 258.5 NovaeGp 874.50 -4.00 914.39 516.50 2.84 11.47 116.8 Soco Int 143.00 -6.25 318.60 117.00 6.81 -12.35 1228.8 MossBros♦ 106.00 5.00 112.00 77.50 4.95 23.83 2127.0 KCOM Gp 94.00 0.25 101.00 78.50 5.36 38.51 173.4
Synthomer 311.60 -0.90 364.10 203.00 2.50 21.02 1010.5 Unilever♦ 2820 19.00 3087 2450 2.92 23.50 3005.4 Old Mut 202.10 2.50 20590 178.90 4.30 14.04 10605.5 TrnCan C$X 43.32 0.18 59.50 40.68 4.71 18.38 500.8 Next 7805 - 8055 6310 1.92 18.39 334.1 TalkTalk♦ 235.40 -6.70 415.10 210.10 5.86 44.31 1565.7
Victrex 1905 24.00 2202.55 1606 2.37 19.25 102.4 ..NV €♦ 41.60 0.54 42.98 30.00 2.81 24.33 13.3 PermTSB 0.06 - 0.10 0.05 - -0.08 0.0 Tullow 203.30 1.00 509.50 153.50 2.08 -1.88 6896.3 Ocado 354.00 7.50 478.50 299.00 - 310.25 1388.0 TelePlus 1062 -13.00 1376.04 725.50 3.58 26.42 39.8
Health Care Equip & Services PhoenixGrp 887.00 7.00 935.00 759.50 6.02 18.65 379.9 Pharmaceuticals & Biotech Pendragn 42.75 - 46.17 29.50 2.11 7.49 169.7
Construction & Materials Photo-Me 153.75 6.00 163.00 125.00 2.79 20.70 143.9 Tobacco
Bioquell 142.00 1.50 155.50 80.00 2.32 141.72 71.1 PrudntlX 1518 23.00 1761.5 1045.99 2.43 15.45 3748.8 BTG 606.00 -4.00 835.87 504.00 - 50.91 435.5
Alumasc 175.00 -2.50 221.83 117.00 3.03 11.82 6.4 Saga 210.30 0.90 225.10 143.75 1.95 17.14 378.7 BrAmTobX 3860.5 52.00 3906.73 3231.5 3.84 17.92 2695.6
ConstMed 973.00 2.50 1004.69 690.85 1.86 64.44 10.3 RSA Ins 440.00 6.10 528.00 390.50 0.45 67.78 2327.5 CathayIn 19.00 - 28.29 16.00 - -19.77 2.0
Boot(H) 223.00 -2.00 245.00 174.75 2.51 13.64 596.8 SignetJwl♦ 9104 -72.00 9917.53 7356 0.56 27.91 1.7 ImpTobX 3492 -78.00 3648 2680 3.67 17.48 3423.7
GNStre kr 131.40 0.60 158.50 113.70 0.72 25.68 543.6 SagicFin 56.50 2.50 68.00 53.00 4.67 4.52 1.8 Dechra♦ 967.00 0.50 1068 751.00 1.63 43.97 35.8
ClarkeT 90.63 4.38 91.00 53.75 3.42 - 272.3 SuperGroup 1596 -9.00 1690.08 750.00 - 28.61 121.2
UDGHlthC 517.00 -12.00 551.50 322.00 1.42 14.62 1918.1 StJmsPl 968.00 3.00 1008 744.83 2.41 28.81 1220.9 Genus♦ 1391 -10.00 1535 1191 1.32 21.43 76.2 Travel & Leisure
CRH 1875 97.00 2478.5 1351 2.36 35.08 2884.1 TescoX 172.00 1.10 252.52 155.40 0.67 -2.47 23749.9
Stan Life 404.70 4.20 505.68 372.28 4.52 29.88 3042.6 GlaxoSmhX♦ 1347 -2.00 1645 1227.5 5.94 6.67 7540.6 888 Hldg 167.00 3.50 185.75 131.00 3.05 22.23 161.6
GalfrdT♦ 1421 7.00 1824 1132 4.22 12.81 170.7 House, Leisure & Pers Goods VertuMotor 76.25 -0.50 77.00 50.50 1.38 13.50 1198.5
Keller 797.50 -12.00 1105 786.00 3.16 25.18 99.9 Media HikmaPhm 2110 62.00 2617 1849.38 0.66 27.31 616.9 AirPrtnr 407.25 5.75 470.00 246.20 5.42 14.27 1.7
AGARmst 184.50 - 213.00 78.44 - -39.95 36.7 Oxfd Bio 6.99 -0.06 13.38 4.17 - -17.88 2360.6 bwin.party 105.90 -1.00 119.90 70.40 3.37 292.54 1680.1
KierGp♦ 1297 -1.00 1779 1260 4.53 32.43 129.9
BarrttDev♦■ 577.00 -0.50 673.50 411.60 2.06 12.95 4102.1 4imprint 1242 -34.00 1351.85 775.00 1.65 28.48 2.1 Support Services
Kingsp € 24.89 1.25 24.99 12.62 0.66 31.37 47.5 Centaur 68.00 -1.00 87.09 60.91 3.82 10.07 339.3 RichterG $ 17.52 0.03 17.71 12.20 0.69 22.42 0.0 Acal 280.25 2.00 334.75 192.00 2.56 58.39 571.2 Cineworld 538.00 -2.00 599.00 344.20 2.51 18.02 167.5
Bellway 2437 -15.00 2638 1686 2.50 10.56 214.4 ShireX 4718 45.00 5870 4305 0.32 13.92 1377.8 CompassX 1075 19.00 1223.36 963.00 2.52 20.87 4092.6
LowBonr 68.00 1.25 76.00 44.25 3.97 17.51 51.6 ChimeCm 364.50 -0.25 366.00 239.00 2.30 128.25 139.6 Aggreko 992.00 16.50 1724.15 866.00 2.73 13.13 701.0
Berkeley 3093 -46.00 3570 2264 5.82 9.88 548.0 VecturGp 170.00 - 187.50 119.00 - 105.20 1099.6 EntInns 103.80 -0.20 139.60 94.65 - 17.38 1238.6
Marshlls♦ 322.00 -3.70 379.80 212.79 1.86 26.25 146.2 Creston 134.00 1.00 163.00 108.00 3.02 10.77 35.4 APR Engy 170.00 1.50 407.44 49.98 2.00 -0.29 44.0
BovisHme♦ 904.00 -85.00 1206 750.00 3.87 11.09 2032.7 FirstGrp 106.20 0.20 129.90 88.65 - 19.18 2601.4
MorgSdl 755.50 -1.50 865.00 570.00 3.57 -22.10 3.1 DlyMailA 724.00 -12.00 989.50 716.50 2.82 9.85 1653.2 Real Estate AshtdGp 1052 21.00 1231 838.00 1.16 16.05 2495.2
Cairn Homes € 1.09 0.00 1.15 1.00 - - 3121.9 Fuller A 1143 23.00 1250 905.00 1.37 22.67 7.6
Norcros 199.75 -1.25 227.60 150.00 2.80 14.07 131.9 HaynesPb 107.50 -2.50 171.90 103.00 6.98 -2.02 6.6 AtknsWS 1530 52.00 1580.34 1225 2.39 15.72 283.4
CrestNic 513.00 -2.00 598.50 328.20 2.79 11.48 652.5 Harworth Gr 11.63 -0.38 14.00 7.26 - 2.81 1702.1 Go-Ahead 2638 10.00 2745 2269 3.24 22.07 43.8
StGobn €X 40.91 0.60 44.84 31.83 1.53 27.19 1586.1 ITE Grp 152.50 2.50 204.75 125.00 4.85 12.19 101.9 Babcock 1000.00 6.00 1207 868.50 2.19 18.99 1078.8
GamesWk 586.00 1.50 600.00 487.25 8.87 15.31 3.3 REITs GreeneKg 816.00 10.50 891.00 712.00 3.52 20.09 541.4
Tyman 238.25 -0.50 342.00 230.00 3.36 34.55 148.6 ITV♦ 267.20 -0.10 281.90 199.90 1.76 20.42 9533.6 Berendsen 1058 29.00 1161 946.50 2.84 20.78 378.6
Gleeson♦ 515.00 10.00 520.00 324.66 1.48 22.40 8.7 Assura 54.75 -0.50 64.00 48.25 3.38 11.65 1097.2 IrishCtl € 5.14 -0.13 5.27 2.90 2.06 13.97 3.1
JohnstnP 46.25 -6.75 175.00 44.00 - -96.56 11364.9 Brammer 162.25 0.25 420.50 148.75 6.59 22.64 826.5
Electronic & Electrical Equip Headlam 503.00 -1.00 550.00 395.00 3.48 16.72 7.9 BigYellw 776.50 20.00 781.50 547.50 2.79 9.24 664.6 Bunzl♦ 1886 8.00 1969 1665 1.88 27.63 612.0 Ladbrokes 109.50 - 147.00 92.85 8.13 -41.92 2261.9
McBride 156.25 -0.75 176.00 74.00 - -406.90 1593.3 News Corp A $ 14.08 -0.19 17.55 12.16 0.72 -76.48 1416.6
Dialight 510.00 9.50 850.00 398.00 2.94 27.29 68.8 BritLand 841.50 12.50 891.50 719.00 3.31 6.13 3022.4 Capita♦ 1251 14.00 1336 1000.5 2.33 33.91 994.2 MandarO $ 1.45 -0.04 1.78 1.44 4.62 18.82 153.1
McCarthy&S 223.00 2.50 228.00 180.00 - 18.69 555.3 NewsCpB $ 14.17 -0.20 17.11 12.24 0.71 -76.94 527.1
e2v Tech♦ 237.25 3.00 268.00 167.50 2.15 21.57 98.8 Cap&Reg 68.50 - 71.00 49.00 1.39 4.17 72.3 Carillion 311.20 0.80 371.40 293.20 5.70 24.88 830.8 Marstons 157.70 1.50 174.40 135.80 4.25 -33.39 811.1
Persimn 1840 -25.00 2156 1423.36 - 12.78 1329.3 Pearson 815.00 3.00 1517.42 747.00 6.26 34.91 4083.1
Halma 823.50 18.00 832.00 642.50 1.45 29.22 1122.9 Countrywd 399.70 -5.90 608.00 397.10 3.75 19.91 329.0 Comnsis 44.00 1.25 63.00 42.00 4.55 -6.04 63.7 Natl Exp 325.10 2.40 326.40 216.30 3.17 20.14 710.9
Philips € 25.14 0.19 28.00 20.48 - 37.50 4336.1 Quarto 218.00 - 239.00 143.50 3.80 8.47 6.1
MorganAd♦ 245.90 5.50 375.84 224.85 4.43 42.54 399.2 DrwntLdn 3774 20.00 3888 2800 1.05 5.23 150.1 ConnectGp 155.75 -4.25 191.45 128.02 6.03 12.21 346.5 PPHE Htl 649.00 - 688.00 429.00 2.73 9.90 3.8
PZCusns 320.00 1.70 376.90 283.00 2.45 25.73 221.0 RELX NV € 14.36 0.18 24.17 13.85 - - 3278.3
OxfordIn 646.00 9.00 1114 502.62 2.01 -75.41 93.3 Gt Portld♦ 871.00 2.00 892.50 676.46 1.03 4.73 524.5 DCC♦ 5860 85.00 5975 3294 1.44 38.17 304.3 Restaurt 659.00 14.00 748.70 611.00 2.34 23.54 836.2
ReckittBX 6315 9.00 6450 4895 2.20 26.83 1007.5 RELX PLCX 1186 11.00 1199 988.50 2.19 27.48 1867.3
Renishaw 1839 -1.00 2672.9 1805 2.30 10.98 82.9 Green Reit € 1.52 0.01 1.70 1.21 - - 7.9 DeLaRue 446.75 -1.25 606.00 442.59 8.17 13.35 73.7 Sportech 55.50 - 72.00 48.00 - -1.32 2.4
Redrow 443.00 -5.40 504.50 254.50 0.90 9.98 355.0 STV Grp 455.00 5.25 494.00 338.00 1.76 13.90 0.2
Spectris 1704 55.00 2420 1608 2.73 15.78 456.0 Hammersn 612.00 15.00 708.00 569.50 3.33 7.07 1899.6 Diploma 700.00 - 916.50 600.29 2.43 21.37 204.5 Stagech 351.20 5.80 437.90 326.80 2.79 14.54 397.3
TaylorWm 185.30 -0.40 207.40 121.85 0.84 14.58 13728.9 ThmReut C$X 53.25 0.20 55.92 42.85 3.36 15.79 969.2
TT Elect 134.00 0.50 164.00 96.00 4.10 -68.61 18.2 Hansteen♦ 115.20 0.30 128.95 101.50 4.34 5.68 3061.5 Elctrcmp 232.00 3.90 263.10 167.55 5.06 14.55 1586.3 ThomasCook 106.00 0.10 162.20 99.05 - -27.36 2774.7
TedBaker♦ 3490 62.00 3490 1882.48 1.15 41.28 33.0 UTV Med 180.00 0.75 205.00 137.00 4.03 32.18 7.9
XP Power 1473 13.00 1750 1340 4.21 14.64 103.9 HIBERNIA 1.38 0.00 1.39 1.06 - - 4728.3 EnergyAst 501.00 1.00 640.00 392.25 - 17.13 4.4 TUI 1130 18.00 1294.78 996.74 - 63.17 557.5
WPPX 1515 7.00 1616 1271 2.52 15.66 2953.3
Industrial Engineering Highcrft 1000.00 5.00 1090 820.00 3.60 18.32 1.0 Essentra 856.00 7.50 1069 714.00 2.14 30.64 387.0 Whitbrd♦ 4515 15.00 5475 4379 1.82 21.88 412.5
Financial General Mining INTU♦ 326.60 4.80 376.50 307.20 4.19 17.08 1541.3
Bodycote 535.00 4.50 797.59 489.90 2.69 17.12 601.7 Experian 1217 24.00 1264 976.50 2.16 26.85 2217.2 Willim H♦ 347.70 3.70 432.10 312.10 3.51 17.36 2953.4
3i 496.70 7.80 571.50 413.70 1.63 7.93 1731.4 LandSecs 1250 11.00 1363 1112 2.57 4.74 1989.5
Castings 475.00 2.50 479.25 360.00 2.80 13.92 1.9 Acacia 170.80 8.70
318.90 154.50 1.61 47.67 1000.1 Grafton 638.50 15.00 868.00 613.00 1.68 16.55 2750.9
AberAsM 338.90 1.70 509.64 288.80 5.31 14.93 3094.6
AngloAmer 450.75 1.30
1392.5 417.20 12.11 -1.30 9860.2 LondonMtrc 166.10 1.10 173.20 144.20 4.21 6.51 1453.2 Utilities
BrewDlph 262.50 4.20 361.00 247.70 3.77 39.89 974.3 Fenner 144.50 0.75 269.80 124.50 8.30 701.46 615.1 HarvyNah♦ 92.63 -0.13 107.00 66.32 3.84 13.44 3.5 Centrica♦ 213.60 2.00 301.00 206.80 6.32 -21.49 10450.5
Goodwin 2240.5 3.00 3285 2063.5 1.89 12.97 2.8 AngloPacif 72.25 2.75
128.00 66.25 11.70 -2.90 152.4 McKaySec 263.00 -0.50 278.00 219.68 3.31 4.59 6.0 Hays 143.70 1.50 173.70 123.30 1.86 19.66 908.6
Canaccord♦ 210.00 -5.00 515.00 201.50 4.69 -7.82 0.1 MucklGp 502.00 2.00 510.00 428.00 4.08 5.64 3.2 DeeVally 1457.5 -5.00 1480 1135 4.29 19.34 1.3
Hill&Sm♦ 643.50 -3.00 735.00 556.50 2.80 24.98 15.0 AnGoldA R 97.00 5.06
149.99 71.59 - -22.51 2219.4 Homesve 419.20 1.30 447.84 314.52 2.95 23.96 306.1
CtyLonInv 348.00 - 380.37 310.00 6.90 13.37 3.1 PrimyHth 109.00 -1.50 113.50 87.50 4.53 12.22 241.7 Drax 228.10 11.00 613.50 213.40 5.22 5.34 2600.5
IMI 917.00 8.50 1454.55 859.50 4.10 14.17 1010.5 Antofagasta 501.00 1.00
811.50 465.90 2.73 32.54 2911.3 HowdenJny♦ 503.00 - 532.00 374.50 1.67 21.41 835.6
CloseBrs♦ 1501 -20.00 1857.39 1344 3.36 12.88 582.6 Redefine♦ 52.25 -1.75 59.90 49.20 6.12 5.16 2979.9 Natl GridX 939.50 16.60 965.00 806.40 4.56 16.37 7505.9
MelroseInd 280.00 2.20 314.78 242.70 2.97 43.81 2436.0 ..5%Pf 0.60 - 0.60 0.60833.33 - - Intserve 545.50 -0.50 878.50 487.20 4.22 14.83 167.1
DBAG € 26.00 -0.05 34.50 22.24 1.55 9.68 13.5 SEGRO 435.60 6.10 466.70 360.70 3.47 4.07 712.2 Pennon 827.50 5.00 925.00 711.90 3.62 26.43 546.6
Renold 57.75 1.00 86.00 50.75 - 22.60 10.3 AquarsPl 11.25 -0.25 17.00 5.53 - -2.68 7866.1 Intertek 2657 18.00 2773 2141 1.85 22.56 375.3
Hargr Lans 1491 5.00 1505 909.00 1.52 45.08 552.8 Shaftbry 918.00 1.00 975.50 737.50 1.43 5.10 551.5 UtdUtils 974.50 16.50 1045 816.50 3.75 24.55 1291.0
Rotork 174.10 0.60 267.20 162.60 2.88 15.17 2541.8 Barrick C$ 10.00 0.37 16.54 7.89 1.34 -2.84 1949.7 Latchways 1100 - 1105 705.01 3.60 29.05 0.4
HBM Hlth SFr 98.50 0.50 113.50 87.00 - 21.17 14.5

AIM
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence PolarCap 386.50 9.00 490.00 335.00 6.86 15.22 1.8 Insurance EuropaOil 3.13 - 10.75 2.65 - -3.63 827.2 Palace Cap 370.00 - 405.00 312.00 2.30 4.62 2.4 Tech - Hardware
Cohort 398.50 3.50 432.04 230.00 1.10 29.01 22.9 Share 29.00 -1.00 40.75 26.50 2.14 308.51 10.0 Gable 20.00 - 63.00 16.75 - -2.91 4.0 FalkldO&G 10.00 - 45.00 9.52 - -21.55 533.7 PnthrSec♦ 377.50 - 402.00 300.00 3.18 16.67 0.9 AminoTech 112.50 -4.00 171.00 104.00 4.44 10.02 58.5
ShoreCap 425.00 - 431.50 400.00 2.35 14.72 0.4 Helios 201.00 - 205.00 120.00 0.75 26.10 0.0 GETECH♦ 34.50 -0.50 65.00 32.00 6.43 6.27 10.7 PSPI 40.50 - 41.70 23.50 - -8.45 0.4 IQE 23.13 0.13 27.00 15.25 - 95.95 298.0
Banks STM Group 67.50 -1.25 73.00 16.50 - 36.33 12.1 Infrastrata 2.38 - 7.48 1.32 - -2.07 80.4 SiriusRE € 0.52 - 0.53 0.35 2.12 10.81 140.9
BCB Hldgs 4.00 -0.50 12.00 4.00 - -0.34 8.0 WH Ireland 101.00 2.00 130.00 79.00 1.98 38.86 7.0 Media Iofina 21.13 0.13 45.00 13.62 - -7.28 368.0 SumGermny €♦ 0.91 - 0.99 0.65 3.46 15.00 10.0 Tech - Software & Services
STB 2912.5 0.50 3024 2680 2.33 21.16 12.9 Avesco 219.00 - 252.00 102.00 2.74 15.26 1.3 Ithaca Engy 41.00 0.25 83.71 26.25 - -7.66 1196.8 TaliesinPr 2260 5.00 2545 1905.65 - 8.19 6.0 Blinkx 25.00 -0.25 40.50 14.75 - -1.72 10912.0
Food & Beverages Cello Gp♦ 89.00 0.50 106.70 79.00 2.92 83.10 276.8 KBC Adv 135.50 - 144.50 77.00 0.74 34.36 176.9 Winkworth♦ 150.50 -2.00 180.00 115.00 4.19 13.65 5.1 BondInt 95.50 -1.00 148.25 83.00 2.30 17.78 20.0
Basic Resource (Ex Mining) FinsbryFd♦ 103.00 - 110.00 56.00 1.53 18.42 214.8 M&Csaatc 332.38 1.13 395.00 280.25 1.89 -45.50 6.8 Brady 80.00 - 110.13 64.00 2.31 -62.84 23.2
Max 0.16 - 1.35 0.08 - -0.08 634.1
CropperJ 620.00 - 718.00 383.00 1.37 28.55 0.4 Nichols 1418 27.00 1496.81 834.56 1.58 24.56 2.7 MissionMk♦ 46.25 - 50.00 39.00 2.16 10.26 10.0 PetrelRes 3.63 - 5.63 2.00 - -1.77 5.0
Retailers Datatec 242.50 - 370.00 241.00 2.15 11.41 0.9
RealGdFd 57.00 -2.00 59.40 23.00 - 41.27 67.8 Next15Cm♦ 226.00 - 228.08 140.00 1.22 146.18 1.4 ASOS 3200 28.00 4259 2146 - 72.08 471.3 DDD 2.00 -0.25 4.50 1.25 - -2.07 189.9
Chemicals Petroceltic 40.00 1.00 195.00 38.00 - -0.54 155.1
Wynnstay 547.50 - 607.25 474.52 1.86 15.42 1.2 YouGov 154.00 - 156.00 101.50 0.52 49.94 1.1 PetroNeft 2.50 -0.05 6.20 2.45 - -3.68 324.9 Koovs 34.50 - 171.00 33.00 - -1.18 5.3 Eckoh 45.88 -1.38 48.83 35.89 0.81 67.27 157.8
Scapa 200.00 0.75 225.25 122.55 0.50 32.23 1019.4
Plexus♦ 170.50 - 252.50 148.00 0.66 27.67 0.4 Majestic 343.00 -1.75 480.00 273.25 1.22 26.26 1266.7 EgSoltns 64.00 -1.00 79.00 61.00 - -44.41 0.9
Health Care Equip & Services Mining
Construction & Materials Rockhop 35.25 0.25 83.50 34.00 - -6.89 691.0 StanlGib 95.50 5.00 322.00 87.00 5.24 -42.79 176.8 Iomart 304.75 -2.75 310.00 159.93 0.57 36.98 83.6
Advnc Med 168.00 -1.25 187.29 116.00 0.42 26.23 138.5 Amara 7.93 0.14 20.00 7.51 - -4.68 108.8
Abbey 1100 - 1129.4 830.00 0.73 8.20 0.1 Sound Oil 14.38 0.13 26.73 8.75 - -9.12 1068.3 Support Services K3BusTc 364.00 - 375.00 205.00 0.34 34.07 21.0
AVO 6.00 - 16.90 3.60 - -7.59 601.4 AMC 8.90 - 44.58 5.25 - 8.86 1054.2
AccsysTch 66.50 0.38 81.50 56.00 - -6.55 96.9 TowerRes 0.10 - 0.77 0.08 - -0.43 1424.2 OMG 43.25 -0.50 49.00 26.50 1.16 124.64 22.0
CareTech♦ 242.50 - 262.15 190.00 3.30 11.44 20.3 BotswanaD 0.75 -0.05 2.50 0.63 - -1.61 8.0 AndSyks 325.00 - 355.00 270.00 7.32 13.96 1.5
Aukett 7.00 - 8.50 5.50 3.00 9.19 54.5 TrinityE 5.50 - 47.00 2.92 - -0.06 6.0 Progility 1.85 - 8.25 1.25 - 7.58 11.2
CircleHldgs 43.00 -1.00 69.00 32.00 - -12.51 0.8 CentAsiaM 154.50 0.50 198.00 135.16 8.02 15.89 2.4 Augean 54.25 - 62.00 37.65 0.92 10.94 26.0
UnJackOil 0.16 -0.01 0.30 0.14 - -5.96 526.5 Pub Tech 127.50 - 208.00 114.00 - -3.93 6.3
Electronic & Electrical Equip ImmunDiag 270.00 - 347.50 264.40 3.15 33.78 4.5 Connema 1.30 - 2.80 0.25 - -3.69 10.0 Begbies 43.50 - 51.08 38.50 5.06 -70.27 50.7
SciSys 69.75 - 95.51 38.50 2.31 -60.92 42.7
SphereMed 11.25 - 27.00 8.30 - -1.43 14.1 VictorOil 47.75 0.50 89.05 1.32 - -1.51 122.1 Christie 127.50 - 162.00 118.00 1.76 11.13 3.3
CeresPow 6.18 - 10.08 6.00 - -4.63 5.0 C'royG&NR 0.43 - 1.10 0.40 - -4.62 50.0 WANdisco 117.50 1.00 545.00 95.00 - -1.29 6.1
Tristel♦ 128.50 2.00 130.00 67.00 1.44 24.55 67.6 VolgaGas 34.00 -3.50 95.00 31.00 9.35 8.26 38.4 Empres 106.00 - 106.90 38.13 0.66 12.79 174.4
Densitrn 10.75 - 11.00 3.50 - 370.69 42.5 GrekaDrill 5.25 -0.28 16.80 5.07 - -5.05 3.0
ElektronT 6.75 - 8.70 4.00 - 10.20 1.6 House, Leisure & Pers Goods Herencia 0.08 - 0.30 0.07 - -0.85 150.0 Pharmaceuticals & Biotech Hargreaves 295.00 -4.75 710.00 280.00 9.05 4.59 112.9 Telecommunications
FlowGp 15.25 -0.25 50.00 9.75 - -3.17 1119.1 HighldGld 51.00 - 59.75 17.73 8.91 -8.43 116.9 Abcam♦ 554.50 -2.50 621.00 390.25 1.43 29.86 607.6 Impellam♦ 752.50 - 859.60 467.50 0.83 12.29 0.6 AltNetwks 460.63 1.38 545.00 261.50 3.15 24.87 9.3
Airea♦ 19.25 - 23.00 10.50 3.12 14.88 3.0 ISG♦ 210.50 - 356.00 140.00 2.33 -6.34 7.3
LPA 89.00 4.50 102.00 58.00 1.74 78.62 21.0 KarelianDd 1.05 0.10 1.85 0.80 - -15.00 4764.5 AllcePharm 53.75 - 63.00 31.70 1.86 17.22 52.1 Peoples Op 106.00 - 147.60 102.00 - -46.80 0.9
Churchll 680.00 2.50 705.00 502.00 2.37 21.10 3.1 JhnsnSrv 87.00 0.25 95.41 56.63 1.95 59.35 15.7
ThorpeFW 217.88 2.88 234.71 130.00 1.51 21.55 7.1 OracleC 2.23 - 3.00 0.25 - -14.26 421.1 Epistem 130.00 - 339.00 110.00 - -4.34 416.4
Zytronic 375.00 -1.50 386.00 252.00 2.67 18.34 10.7
gamingrealm 24.75 - 41.00 20.00 - -5.29 0.0
ShantaGold 5.13 - 11.45 4.00 - -10.57 461.4 JourneyGp 180.50 - 187.50 115.00 1.65 14.33 701.1 Travel & Leisure
Mulberry♦ 904.50 - 969.00 675.00 0.55 -385.39 0.9 e-Thera 28.00 - 49.40 24.25 - -9.05 5.3
SierraRut 21.75 - 36.75 16.06 - -18.73 34.5 LonSec 2100 - 2400 1800 2.95 21.95 0.0 32Red PLC 96.50 -1.50 104.09 35.25 2.49 34.94 214.6
GW Phrms 471.50 -6.25 708.55 310.00 - -35.36 411.2
Financial General Portmern 957.50 - 980.00 860.20 2.77 15.67 0.7
Sirius Min 18.00 - 29.50 6.40 - -35.79 2389.2 Matchtech♦ 530.00 - 587.80 485.00 3.82 17.92 8.1 CastleStIn 28.75 -0.25 41.25 17.00 - 5.13 57.4
TelfordHms 371.00 -19.00 495.00 337.00 2.75 11.38 386.7 HtchChMd 2565 - 2860 1140.15 - 148.44 9.7
Ambrian 4.88 - 12.05 4.50 - -1.27 28.0 Stratex 1.48 -0.08 2.92 1.00 - -3.05 419.0 NewmkSec 2.98 0.03 4.93 1.86 2.52 6.97 439.7 Celtic 73.50 - 79.00 70.75 - -17.28 0.2
WalkerGb 202.00 - 244.85 161.00 1.14 22.46 26.5 ImmuPhar 26.00 -0.75 65.00 23.50 - -8.75 36.4
Arbuthnot 1475 -17.50 1650 1250 1.83 20.25 1.3 ZincOx 6.88 - 18.00 6.00 - -0.56 62.0 NWF♦ 177.50 - 181.00 120.00 2.87 13.94 5.9 ..6%CvPf 65.00 - 80.00 35.00 4.98 - 0.5
ReNeuron 3.00 -0.13 6.50 2.80 - -6.02 3922.8
Aurora 9.13 - 11.25 8.00 - -0.93 19.0 Industrial Engineering Optimal Pay 345.00 -5.25 575.00 215.00 - 52.77 4284.0 ..Cv Pf 135.00 - 150.00 120.00 - - 0.1
Sareum 0.21 - 0.65 0.19 - -3.23 1080.6
BP Marsh 155.00 0.50 159.00 125.00 1.77 6.88 26.1 Oil & Gas PennaCns 267.50 - 285.00 126.00 1.31 15.54 88.8 Dalata 315.00 - 340.00 111.15 - 169.81 3.8
600 Grp 14.75 -0.25 20.00 14.55 - 5.73 32.5 SinclairIS 36.75 -0.25 48.00 30.00 - -14.09 64.0
BrooksMac 1976 10.50 1985 1300 1.47 29.00 10.7 AlkneEng 35.75 - 38.50 19.50 0.84 -22.41 12.1 Petards 13.88 - 14.65 9.75 - 11.03 0.4 Dart 483.75 14.00 505.00 249.50 0.60 21.79 536.8
Molins 72.50 - 96.80 66.10 7.59 -17.68 52.5 Vernalis 64.00 1.00 88.29 44.45 - -96.24 50.1
Camellia 9325 175.00 9992 8579.64 1.35 316.41 0.0 AmeriRes 25.50 0.75 48.75 19.10 - -39.41 1219.5 RedhallGp 6.63 - 15.50 5.00 - -0.27 15.5 GoalsSocc♦ 157.50 1.50 242.00 127.00 1.27 11.03 47.2
MS Intl 205.00 - 222.00 116.00 3.90 25.01 4.0
Fairpoint 189.50 - 195.00 105.66 3.38 27.26 42.3
Pres Tech 191.00 - 720.00 140.00 4.40 11.58 6.1
AndesEnrg 24.50 0.50 44.76 16.50 - -18.05 134.1 Real Estate Renew 335.00 -0.50 348.00 237.00 1.49 19.41 14.5 MinoanGp 8.75 - 14.90 6.00 - -13.87 13.4
Leeds 36.00 - 43.79 30.00 - 9.43 10.0 BahamasP 1.27 -0.04 3.10 1.11 - -5.41 490.7 Conygar 169.75 0.25 195.00 163.50 1.03 8.65 1.7 Restore 281.00 - 297.59 232.00 0.85 51.31 109.6 PeelHtls 104.00 - 110.00 77.00 1.44 20.50 3.3
TP Group 3.13 - 6.75 3.00 - -2.96 1332.5
MattioliWds 639.00 -0.50 650.00 421.96 1.46 32.61 519.3 BorSthnPet 1.90 -0.08 9.00 1.88 - -3.84 701.7 FltchKng 42.50 - 65.00 41.11 7.06 5.91 10.7 SafeCharge 240.00 -1.50 297.00 226.00 2.22 26.14 286.7
Miton 24.88 0.13 31.00 18.50 2.41 8.64 64.2 Industrial General Circle Oil 4.25 -0.13 17.50 4.23 - -0.62 101.0
Utilities
InlandHms 68.25 -0.50 77.00 53.55 0.88 21.58 3756.3 Servoca 30.75 0.25 34.30 15.00 - 22.88 374.6
MAB 337.50 -11.50 349.00 170.00 - 35.20 1.0 ClontarfEn 0.25 - 1.10 0.13 - -5.21 628.3 ModernWtr 8.75 - 23.25 7.75 - -0.40 23.1
Powerflte 90.25 0.25 100.98 44.50 1.18 29.06 20.9 Lok'nStor♦ 326.50 -2.00 332.00 228.00 2.25 42.73 16.0 Utilityws 156.50 1.00 290.00 142.00 2.88 10.75 150.9
Numis 251.25 0.25 278.00 196.09 4.18 19.08 59.0 Egdon Res 9.38 - 20.00 6.24 - -4.64 143.5 Rurelec 0.80 -0.03 5.25 0.50 - -0.29 1788.5
RM2 46.00 - 73.00 36.50 - -4.63 133.0 LXB Retail 92.00 0.50 149.00 77.00 - - 12.7
Park Grp 92.50 - 95.00 52.00 2.76 20.10 51.3 Enegi Oil 0.48 -0.08 3.35 0.42 - -0.18 513.5 SeaEnergy 4.50 - 32.63 4.00 - -0.48 149.0
Symphny 7.38 - 11.22 6.50 - -20.66 126.4 NewRiver 344.00 -0.50 351.50 283.25 3.78 9.14 325.0

Investment Companies
Conventional (Ex Private Equity) 52 Week Dis(-) EdinDragn♦ 236.75 -1.25 311.00 212.50 0.93 268.0 -11.7 JPM Clavr♦ 600.00 9.00 645.18 550.50 3.42 634.0 -5.4 SchdrUKMd 459.38 1.75 504.50 418.50 1.85 519.2 -11.5 VCTs 52 Week Dis(-) MMP 3.13 - 4.93 3.00 - - -
Price +/-Chg High Low Yld NAV or Pm ..CULS 104.00 -0.13 107.89 102.00 - - - JPMGIConv 92.75 -0.25 106.00 90.00 6.06 97.7 -5.1 ScotAmer 265.50 4.00 276.50 230.44 3.97 247.5 7.3 Price +/-Chg High Low Yld NAV or Pm Marwyn Val 215.50 -2.00 251.93 198.00 - - -
3i Infra 175.30 0.10 189.56 161.85 4.44 - - Edin Inv♦ 706.00 -0.50 725.00 620.00 3.38 708.0 -0.3 JPM GEI 93.75 1.50 125.05 84.25 5.23 93.8 -0.1 Scottish In 601.00 3.50 670.00 552.50 2.00 671.9 -10.6 AlbionDev 69.00 - 70.89 66.00 7.25 72.5 -4.8 TerraCat 106.00 - 110.89 90.00 - - -
AbnAsianIn 156.00 1.00 208.00 142.50 5.26 165.7 -5.9 Edin WWd 447.13 0.88 502.44 381.20 0.45 472.5 -5.4 JPM I&C Uni 353.00 - 370.00 342.00 - 361.9 -2.5 ScottMort♦ 265.00 0.80 283.40 226.20 1.11 260.4 1.8 Albion Ent 90.50 - 91.75 85.00 5.52 103.5 -12.6
AbnAsian♦■ 734.00 2.00 973.00 653.77 1.36 832.4 -11.8 EP Global 234.00 0.63 262.10 212.05 1.41 235.8 -0.8 JPM Inc&Gr 106.50 - 115.85 102.00 4.23 113.0 -5.8 ScottOrtll 747.25 -0.50 898.50 660.00 1.54 829.1 -9.9 AlbionTech 76.00 - 78.49 72.50 6.58 77.2 -1.6 ISDX
AbnJapInv 462.00 1.00 571.00 422.11 0.56 523.1 -11.7 Estabmt 169.50 - 188.00 138.00 2.89 204.8 -17.2 JPM Ind 484.25 4.00 605.50 443.00 - 543.0 -10.8 SecTstScot♦ 129.00 - 148.00 120.50 4.03 137.9 -6.5 AlbionVCT 65.50 - 67.90 63.00 7.63 67.5 -3.0
Euro Ast 1062.5 5.00 1160 945.00 4.97 1046.4 1.5 JPM JpSm 245.00 - 261.75 196.25 - 277.6 -11.7 Seneca I&G♦ 142.63 -0.63 150.00 134.00 3.93 145.9 -2.2 52 Week Vol
AbnLatAmIn 47.75 -0.25 77.79 43.35 8.90 53.6 -10.9 ArtemisVCT 68.00 - 70.52 59.23 5.88 76.2 -10.8
EuroInvT 705.00 0.75 849.00 667.00 1.99 759.8 -7.2 JPM Jap 281.00 1.00 307.95 220.00 1.00 312.5 -10.1 Shires Inc 217.13 1.25 261.00 210.98 5.64 233.3 -6.9 Price +/-Chg High Low Yld P/E 000s
..Sub 0.15 - 2.60 0.10 - - - Baronsmd 72.63 - 75.60 69.75 4.82 76.4 -4.9
F&C Cp&I 262.00 3.00 277.00 241.00 3.78 261.4 0.2 JPM Mid 1010 - 1015 743.58 2.03 1033.1 -2.2 StdLf Eqt 463.50 3.50 471.46 384.44 3.11 454.6 2.0 ArsenalFC 1567000 - 1600000 1430000 - 48.64 0.0
AbnNewDn 150.63 0.63 205.23 136.00 2.39 169.9 -11.3 ..VCT 2 95.38 - 99.00 91.00 4.72 99.7 -4.3
F&CGblSmlr 973.50 9.50 1028.92 864.00 0.84 963.9 1.0 JPM O'seas♦ 1024 9.00 1159 930.00 1.46 1093.8 -6.4 StdLf Sml 348.00 -1.00 352.75 267.00 1.33 365.4 -4.8 ShephdNm 1162.5 - 1232 1000.00 2.24 23.84 5.2
AbnNewThai 363.88 2.00 489.88 324.00 2.25 430.2 -15.4 ..VCT 3 100.13 - 101.50 94.00 7.49 104.4 -4.1
F&CMgdG 151.00 - 158.00 136.11 - 148.5 1.7 JPMRussian 331.38 -3.13 391.00 223.25 3.92 394.7 -16.0 StrategicEq 220.00 2.50 241.50 175.75 0.35 208.3 5.6 Thwaites 118.50 - 131.00 102.00 3.76 7.14 18.6
AbnSmlCo 210.50 0.50 229.00 174.00 3.09 245.2 -14.2 ..VCT 4 92.63 - 95.19 88.25 3.24 96.3 -3.8
Abn UK 307.00 4.00 334.75 281.83 3.32 316.2 -2.9 F&CMgdI♦ 118.50 - 130.00 112.10 4.18 116.3 1.9 JPMSnrSec 85.63 -0.75 99.00 85.25 7.18 91.0 -5.9 Temp Bar 1064 - 1235.01 1020 4.40 1112.2 -4.3 ..VCT 5 78.00 - 78.88 72.00 5.13 79.8 -2.3
Abf Gd Inc 195.13 3.88 212.00 156.00 3.77 212.8 -8.3 FidAsian♦ 235.25 2.25 285.50 195.50 0.47 264.1 -10.9 JPM Smlr♦ 896.00 4.00 929.20 584.17 1.07 1022.4 -12.4 TempEmerg 421.00 2.00 607.78 370.00 1.72 475.0 -11.4 BSC VCT 87.00 - 91.00 82.00 6.32 99.1 -12.2
Abf Sml 1131 -3.00 1235 1015 2.19 1253.3 -9.8 FidChiSpS 134.00 1.50 179.78 105.06 0.97 157.0 -14.6 JPM US Sml 178.25 -0.50 193.75 155.25 - 180.6 -1.3 TRIG 99.75 -0.25 109.00 99.00 6.10 - - ..VCT2 56.00 - 59.00 51.98 8.04 59.9 -6.5 Guide to FT Share Service
AcenciADbt $ 1.50 -0.01 1.80 1.48 4.09 1.7 -11.8 Fid Euro 166.00 3.30 187.50 153.00 1.87 177.0 -6.2 JupUSSmCo 599.50 -0.25 704.03 572.50 - 687.0 -12.7 ThreadUKSel 163.50 - 180.00 156.00 2.66 186.0 -12.1 Crown Place♦ 29.00 - 30.50 27.75 8.62 30.7 -5.5
AdvDvpMk 397.50 -1.63 483.00 350.00 - 450.3 -11.7 Fid Jap 82.00 -0.50 88.25 68.50 - 94.8 -13.5 KeystoneInv 1823 23.00 1900 1720.95 2.77 1924.8 -5.3 TREurGth♦■ 583.00 1.00 661.00 493.00 1.11 651.9 -10.6 FrsightSol 102.50 - 106.00 95.00 5.85 109.2 -6.1
Alliance 505.00 5.00 531.50 437.00 1.96 558.3 -9.5 Fid Spec♦ 197.00 0.50 217.00 164.80 2.18 - - Law Deb 515.75 5.75 545.50 452.50 3.04 460.4 12.0 TroyInc&G 72.50 0.75 74.71 63.75 3.14 70.7 2.5 Inc&GthVCT 93.75 0.75 104.00 88.25 19.20 102.5 -8.5
AllianzTech 610.50 1.50 640.43 507.00 - 643.6 -5.1 FinsG&I 579.00 6.00 609.36 513.00 2.02 573.0 1.0 LinTrain £ 535.00 2.50 585.00 370.00 1.26 418.6 27.8 UtilicoEmg 169.88 3.63 172.00 119.11 3.59 185.3 -8.3 KingsAYVCT 18.50 - 19.00 17.25 5.41 19.8 -6.6 For queries about the FT Share Service pages e-mail
AltAstsOps 42.00 -0.75 47.00 37.50 - 46.7 -10.1 FstPacfic H HK$ 5.11 0.01 8.38 4.56 3.99 - - Ln&StLaw♦ 344.00 1.00 384.00 331.51 4.13 366.0 -6.0 UtilEmSubs 9.75 - 14.00 7.63 - - - Maven I&G♦ 67.50 - 75.00 59.50 8.74 63.6 6.1 ft.reader.enquiries@morningstar.com.
Art Alpha 252.00 3.00 300.00 248.00 1.29 309.5 -18.6 For & Col 438.20 0.20 467.90 395.60 2.15 473.8 -7.5 Lowland 1323.5 4.50 1440 1230 2.87 1337.4 -1.0 UIL Inv♦ 108.50 -5.25 126.00 105.88 6.91 146.3 -25.8 MavenVCT2 49.25 -0.25 64.00 45.00 8.12 50.2 -1.9 All data is as of close of the previous business day. Company classifications
..Sub 18.25 - 38.00 17.00 6.58 - - Geiger 12.75 -0.13 25.66 11.50 - 9.0 41.7 M&GHighInc♦ 158.00 3.00 179.95 145.00 2.91 169.2 -6.6 ValAndInc 244.50 -0.50 274.00 228.50 3.68 326.1 -25.0 MavenVCT3 75.75 - 79.00 70.00 7.26 89.5 -15.4 are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE
AsianToRt 188.50 1.50 224.00 163.25 1.72 205.5 -8.3 GenEmer 460.20 5.20 575.00 391.70 - 517.7 -11.1 Majedie 257.00 0.75 283.00 215.00 2.92 254.1 1.1 Witan♦ 778.50 0.50 850.00 676.78 2.01 773.5 0.6 MavenVCT4 85.25 0.25 88.39 80.00 5.87 97.7 -12.7 100 constituent stocks are shown in bold.
Aurora 156.00 - 162.23 144.00 2.47 162.6 -4.1 GFIS 14.25 -0.25 22.60 13.00 - 41.6 -65.7 Man&Lon♦■ 246.50 - 259.28 219.00 1.41 299.8 -17.8 WitanPac 225.63 0.75 274.75 203.03 2.02 260.4 -13.4 MavenVCT5 36.00 - 37.00 32.00 6.94 39.3 -8.4 Closing prices are shown in pence unless otherwise indicated. Highs & lows
Axiom 101.50 - 103.00 100.00 - - - GRIT 6.45 -0.05 28.00 4.00 - - - MCGlobPort 176.50 1.00 195.00 155.00 2.32 177.1 -0.3 WorldTst 251.25 1.75 285.25 231.00 0.21 284.6 -11.7 Nthn 2 VCT 73.00 - 88.00 67.25 7.53 76.8 -4.9 are based on intra-day trading over a rolling 52 week period. Price/earnings
BG Japan 459.50 1.50 493.25 358.25 - 444.6 3.4 GoldenPros 19.63 -0.25 34.00 18.00 - 21.0 -6.5 MCurPac♦ 259.75 -0.75 336.00 236.73 2.89 297.2 -12.6 WwideHlth 1811 7.00 2108.5 1590.25 0.77 1941.1 -6.7 Nthn 3 VCT 95.50 - 104.00 86.50 5.76 100.5 -5.0 ratios (PER) are based on latest annual reports and accounts and are updated
BG Shin 386.00 1.75 424.00 284.50 - 396.2 -2.6 Hansa♦ 768.50 2.00 988.00 740.50 2.47 1096.7 -29.9 MercantIT 1750 5.00 1762.96 1390.39 2.46 1942.5 -9.9 NthnVent 78.75 - 85.36 74.00 7.62 83.0 -5.1 with interim figures. PER is calculated using the company’s diluted earnings
Conventional - Private Equity 52 Week Dis(-)
BSRT 18.75 -0.25 34.00 17.00 - 39.1 -52.0 ..A 762.50 - 930.00 747.25 - 1096.7 -30.5 MrchTst 431.75 -1.00 500.00 406.22 5.54 448.6 -3.8 ProVenGI♦ 75.50 - 81.25 75.00 5.96 79.8 -5.4 from continuing operations. Yields are based on closing price and on dividends
Price +/-Chg High Low Yld NAV or Pm
Bankers♦ 622.00 5.00 674.50 548.00 2.43 618.6 0.5 Hend Alt 218.75 -1.25 252.50 215.00 1.37 274.8 -20.4 Mid Wynd 339.00 0.50 352.50 290.50 1.14 328.2 3.3 ProVenVCT♦ 90.75 - 97.89 89.50 5.51 98.4 -7.8 paid in the last financial year and updated with interim figures. Yields are
Hen Div 91.50 -0.25 95.50 87.50 5.57 88.4 3.5 MitonUKMic 56.75 0.38 57.00 50.00 - - - AbnPvtEq 88.63 -0.13 96.00 82.00 2.52 121.6 -27.1
BrngEmEu 533.50 -1.50 618.00 432.00 3.56 596.7 -10.6 UnicornAIM 143.00 - 143.88 122.00 4.20 160.1 -10.7 shown in net terms; dividends on UK companies are net of 10% tax, non-UK
HenEuroF 1043 4.00 1148.5 925.91 2.25 1013.8 2.9 MitonWw 158.50 - 164.65 152.75 - 174.4 -9.1 Altamir € 10.71 0.11 11.82 9.52 4.71 17.5 -38.8
BH Global 1280 12.00 1343.6 1214 - 1368.0 -6.4 companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect
HenEuro♦ 872.25 11.25 957.00 770.00 2.06 861.0 1.3 MMP 3.13 - 4.93 3.00 - - - Dun Ent 338.38 0.88 378.00 305.00 1.39 508.9 -33.5 Ordinary Income Shares 52 Week HR
..EUR € 12.00 - 14.00 11.80 - - - capital changes where appropriate.
HenFarEs♦ 279.50 3.25 362.00 238.25 6.62 273.2 2.3 Monks 410.60 2.40 458.90 370.07 0.96 462.5 -11.2 Electra 3595 -1.00 3750 2550 - 3912.3 -8.1 Price +/-Chg High Low Yld WO GRY 0%
..USD $ 12.79 0.09 13.35 11.90 - 13.5 -5.3 Trading volumes are end of day aggregated totals, rounded to the nearest
HendGlob 370.00 - 416.81 334.86 2.70 412.1 -10.2 MontanSm 525.50 3.00 548.00 429.86 1.33 590.7 -11.0 ElectraPrf 151.75 - 152.75 146.70 - 148.0 2.5 JPM I&C 89.00 - 106.00 82.00 7.47 -17.3 0.4
BH Macro 2009 3.00 2191 1990 - 2168.0 -7.3 1,000 shares.
HenHigh 182.25 2.25 195.25 165.90 4.77 175.4 3.9 Mur Inc 682.00 7.00 796.60 637.04 4.58 722.9 -5.7 F&C PvtEq 221.00 - 230.00 210.00 4.90 277.1 -20.2 JupiterDv&G♦ 3.88 - 5.50 3.00 19.10 7.3 -43.4
..EUR € 19.80 - 21.10 19.31 - 20.9 -5.3
HenInt Inc♦ 121.00 0.88 137.69 106.92 3.68 118.2 2.4 Mur Int 833.00 -3.00 1089 784.00 5.40 844.5 -1.4 GraphEnt 594.00 3.00 615.94 552.00 1.68 699.4 -15.1 M&GHI&Gt♦ 55.75 0.25 65.50 53.00 - -19.6 -7.5 Net asset value per share (NAV) and split analytics are provided only as a
..USD $ 19.53 -0.16 21.10 19.25 - 20.8 -6.1
Hen Opp 885.00 -4.50 1059.1 755.00 1.41 992.2 -10.8 ..B 725.00 - 1304.1 627.00 - 844.1 -14.1 HVPE 850.00 -6.00 899.46 795.55 - 1088.3 -21.9 Rghts&Icp 4920 10.00 4950 3800 - -87.6 -13.2 guide. Discounts and premiums are calculated using the latest cum fair net
BiotechGth 697.50 -2.50 898.92 582.73 - 752.6 -7.3
HenSmlr 650.50 5.00 696.00 526.00 1.77 715.0 -9.0 NB DDIF $ 1.16 -0.01 1.22 1.00 - - - HgCapital 1071 1.00 1169 1030 2.99 1283.5 -16.6 asset value estimate and closing price. Discounts, premiums, gross redemption
BlckRCom 60.75 -0.25 103.25 55.00 9.90 60.4 0.6 Income Shares 52 Week HR
Herald 738.00 10.00 742.50 631.00 - 885.8 -16.7 NewCtyEgy 12.50 -0.13 26.95 10.50 - 17.3 -27.7 JPM Pvt Eq $ 1.01 0.00 1.07 0.80 - 1.2 -15.8 yield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)
BlckREmEur 212.75 -0.50 240.00 164.58 - 243.0 -12.4 Price +/-Chg High Low Yld WO GRY 0%
HICL Infra 153.20 0.10 161.40 147.40 4.80 138.7 10.5 ..Sub 0.13 - 0.15 0.06 - - - JZ Capital♦ 394.00 - 480.00 388.00 - 623.3 -36.8 are displayed as a percentage, NAV and terminal asset value per share (TAV)
BlckRFrnt 104.88 0.13 126.50 95.25 3.97 111.5 -5.9 JPM In&Gr 99.00 - 100.50 92.50 4.55 -76.5 9.9
Impax Env. 152.50 -1.50 167.75 139.00 0.92 170.9 -10.8 NewCityHY♦ 58.75 -0.25 65.25 52.00 7.34 55.5 5.9 Mithras 146.50 - 151.91 126.50 0.68 162.8 -10.0 in pence.
BlckRGtEur♦ 242.25 0.25 264.50 217.43 2.00 251.8 -3.8 M&GHghIc♦ 54.50 0.25 63.00 51.00 - -19.6 -5.7
Ind IT 360.00 1.75 368.00 280.00 1.39 385.5 -6.6 NewIndia 309.00 3.50 371.30 263.00 - 333.0 -7.2 NB PE Ptnr $ 11.05 - 12.20 10.91 - - -
..Sub 10.13 -0.13 25.63 9.00 - - - Rghts&I 1275 5.00 1300 925.00 2.82 - 21.1
Intl PP 138.10 2.10 140.59 130.00 4.56 126.7 9.0 New Star IT♦ 72.50 - 78.00 65.45 - 112.4 -35.5 Nthn Invs 610.00 - 695.00 403.63 2.79 553.6 10.2 X FT Global 500 company
BlckR I&G 184.75 2.00 193.00 170.99 3.09 188.4 -1.9
InvAsTr 175.88 1.75 213.58 147.00 1.96 196.7 -10.6 NorthAmer 826.00 6.00 906.45 729.50 3.69 914.1 -9.6 Pantheon 1306 -4.00 1395 1220 - 1607.2 -18.7 Capital Shares 52 Week HR ♦ trading ex-dividend
BlckRIncStr 138.00 1.50 140.50 124.44 4.68 136.2 1.3
Inv Inc 285.13 2.25 305.00 265.50 3.51 301.0 -5.3 NthAtSml 2190 -9.00 2200 1710 - 2646.3 -17.2 PantheonR 1227.5 - 1300 1150 - 1607.2 -23.6 Price +/-Chg High Low SP WO TAV 0% ■ trading ex-capital distribution
BlckRckLat 291.13 3.63 456.00 262.11 6.62 329.3 -11.6
InvPerp 72.13 - 79.00 68.40 6.93 69.9 3.2 Oryx Int 647.50 - 654.88 400.00 - 688.1 -5.9 PrincssPE € 8.04 -0.01 8.12 6.90 7.05 9.6 -16.2 JPM Inc&Gr 9.50 0.13 15.19 8.00 2.9 -3.8 5.4 # price at time of suspension from trading
BlckRckNrAm♦ 111.00 0.50 124.50 101.00 3.60 124.7 -11.0
IPST BalR 117.00 0.25 123.00 114.08 - 115.1 1.7 PacAsset 183.50 0.50 226.15 156.25 1.42 185.7 -1.2 Riverstone 825.00 8.00 1114 817.00 - 1071.3 -23.0 M&GHghIc 2.25 0.05 5.30 1.70 13.5 12.6 -
BlckRSmlr♦ 955.00 10.00 983.00 740.50 1.52 1023.9 -6.7 The prices listed are indicative and believed accurate at the time of publication.
IPST Gbl Eq 159.50 2.00 172.00 147.00 2.88 156.2 2.1 PacHorzn 167.38 -0.13 223.77 142.50 0.84 187.7 -10.8 StdLfEuPv 206.00 3.00 223.50 198.00 2.43 278.7 -26.1
BlckRThrmt 331.00 2.50 352.00 258.68 1.33 384.9 -14.0 Zero Dividend Preference Shares 52 Week HR No offer is made by Morningstar or the FT. The FT does not warrant nor
BlckRWld 206.75 0.50 360.80 185.75 10.16 221.5 -6.7 IPST Mngd 102.50 -0.50 104.00 101.00 - 103.2 -0.7 Perp I&G 415.00 1.50 431.00 378.20 2.92 411.5 0.9 Conventional - Property ICs 52 Week Dis(-)
Price +/-Chg High Low SP WO TAV 0% guarantee that the information is reliable or complete. The FT does not accept
Bluecrest A 190.30 -0.40 194.60 184.50 - 202.9 -6.2 IPST UK Eq 170.00 1.50 174.39 150.36 3.62 167.2 1.7 PerAsset 34360 -227.00 36313.1 33000 1.63 34590. -0.7 Price +/-Chg High Low Yld NAV or Pm
Abf Gd Inc 152.25 - 153.25 146.25 -48.1 - 159.7 responsibility and will not be liable for any loss arising from the reliance on
Brit Emp 471.80 2.80 557.08 440.10 2.23 539.5 -12.5 InvPpUK♦ 384.75 -1.25 391.00 302.44 4.46 401.3 -4.1 4 Direct Property EcofinWatr 155.50 - 155.88 152.60 -82.4 -97.4 160.7 or use of the information.
Brunner♦ 544.75 4.25 584.12 503.70 2.20 605.6 -10.0 Invs Cap A 92.00 - 102.00 88.00 4.87 98.1 -6.2 PolarFins 104.25 0.25 112.84 94.00 2.97 110.2 -5.4
AXA Propty 49.50 - 52.00 40.25 - - - JPM I&C 175.25 - 176.00 168.00 -21.5 - 192.1
Calednia 2400 5.00 2517.66 2110 2.06 2818.3 -14.8 Invs Cap B 92.50 -1.00 103.00 88.00 1.24 98.1 -5.7 ..Sub 5.25 - 9.54 4.00 - - - The FT Share Service is a paid-for-print listing service and may not be fully
CustdnREIT 104.75 -0.25 110.50 104.00 3.58 - - JupiterDv&G 114.75 - 115.75 103.00 -6.2 - 130.4
CanGen C$ 18.95 0.05 22.00 17.08 2.84 25.7 -26.3 Invs CapU 362.00 - 404.95 347.00 - 392.8 -7.8 PolarHealth♦ 174.00 4.00 187.50 157.23 2.04 178.3 -2.4 representative of all LSE-listed companies. This service is available to all listed
F&CComPrp♦ 136.30 -0.90 149.00 128.10 4.40 132.2 3.1 JZ Capital 363.25 - 363.50 348.00 - - 369.8
Cap Gear 3265 0.50 3575 3152.28 0.49 3263.5 0.0 JLaingInf 117.00 - 128.60 113.99 5.66 106.0 10.4 PolarTech 604.00 7.50 614.00 487.40 - 614.4 -1.7 companies, subject to the Editor’s discretion. For new sales enquiries please
F&CUKRealE 99.25 -0.50 105.50 92.50 5.04 97.6 1.7 M&GHghIc 116.38 - 117.23 112.00 -22.8 -98.2 122.8
City Merch♦ 183.00 - 194.00 179.00 5.46 179.9 1.7 JPM Amer 274.20 0.10 296.14 238.90 1.19 286.5 -4.3 ProspJap $ 1.04 0.00 1.09 0.90 - 1.3 -20.0 email jessica.llewelyn@ft.com or call 020 7873 4012.
InvistaERET# 0.30 0.05 2.00 0.03 - 1.3 -76.9 UILFn16 188.13 0.50 188.50 182.50 -77.6 - 192.8
CityNatRs♦ 87.25 -1.00 121.00 75.00 6.42 96.3 -9.4 JPM Asn 213.00 1.00 268.92 182.00 1.03 238.7 -10.8 QatarInvF $ 1.28 - 1.49 1.09 2.66 1.4 -8.6
Longbow 104.75 - 106.75 101.25 5.73 - - UILFn18 142.63 0.25 146.50 135.50 -24.5 -37.9 160.5
City Lon♦ 385.30 3.50 418.35 359.00 3.93 377.4 2.1 JPM Brazil 38.50 - 64.73 32.25 2.21 43.1 -10.7 RIT Cap 1605 9.00 1640 1376 1.85 1546.0 3.8
PictonProp♦ 70.50 0.50 74.75 63.50 4.47 72.1 -2.2 UILFn20 122.63 - 123.75 107.50 -11.7 -14.6 154.9
DexionAb 183.63 0.25 191.00 172.50 - 191.8 -4.3 JPM China 169.00 1.75 233.96 136.30 0.95 196.5 -14.0 RobecoNV € 30.38 - - - - - -
SLIPropInc♦ 83.00 -0.50 90.25 75.50 5.60 80.6 3.0 Data provided by Morningstar
JPMElct MC 100.00 - 101.99 97.01 0.35 99.2 0.8 RolincoNV € 28.32 - - - - - -
..EUR € 2.59 0.05 2.65 2.40 - - -
..MG 603.00 4.00 635.00 563.10 1.12 611.7 -1.4 Ruffer Inv 210.50 - 226.00 206.50 - 210.2 0.1
UKComPrp♦ 82.85 -0.35 94.00 82.85 4.44 84.8 -2.3 Investment Companies - AIM
..USD $ 3.90 0.06 3.89 3.70 - - -
DiverseInc 96.25 0.75 97.50 78.00 2.44 92.6 3.9 ..MI 102.50 - 110.00 92.00 3.71 104.9 -2.3 SchdrAsiaP 261.75 1.13 321.50 226.25 1.05 293.3 -10.8 Property Securities 52 Week Dis(-)
JPM Emrg♦ 552.00 4.50 674.65 486.00 1.00 618.3 -10.7 Schdr Inc 259.00 2.75 348.25 243.50 3.90 271.2 -4.5 SchdrGlbRe 120.25 0.25 132.98 111.25 1.81 129.1 -6.9
Dun Inc♦ 231.50 3.13 273.00 217.50 4.86 246.6 -6.1 Price +/-Chg High Low Yld NAV or Pm
JPM EurGth 237.00 -0.25 263.00 212.00 2.83 251.3 -5.7 SchdrJap 159.00 1.38 165.00 122.75 1.13 164.7 -3.5 TR Prop 285.80 -2.40 325.00 265.97 2.64 315.0 -9.3
Dun Sml 198.00 0.75 229.00 173.50 2.65 236.5 -16.3 AdFrntMkt 51.00 0.25 62.29 48.20 - 56.0 -8.9
EcofinWatr♦ 125.00 -0.38 167.25 113.10 5.60 149.1 -16.2 JPM EurInc 128.75 0.25 147.50 115.50 1.98 130.6 -1.4 SchdrOrient♦ 182.88 0.38 215.25 154.00 4.24 182.2 0.4 CrysAmber 171.88 - 173.50 140.50 0.3 161.8 6.2
JPM EuSm 260.00 3.00 264.00 192.00 1.12 281.5 -7.6 SchdrUK 157.00 1.88 174.00 145.00 3.03 173.5 -9.5
..CULS 100.38 -0.38 107.00 99.50 - - - GLI Finance♦ 41.25 -2.50 65.00 39.00 12.1 - - www.morningstar.co.uk
IndiaCap 59.00 0.25 69.40 52.00 - 71.5 -17.5
Infra India 19.25 - 21.99 11.00 - 51.7 -62.8
Friday 20 November 2015 ★ FINANCIAL TIMES 25

MANAGED FUNDS SERVICE

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

Artemis Strategic Bond R Q Acc 83.82 88.98 0.09 4.12 The Castleton Growth Fund Ret Inc 2 111.24 - 0.14 0.00 Cavendish Worldwide Fund C Acc 306.40xd - 3.90 0.80 Vietnam Growth Fund (VGF) NAV $ 24.04 - -0.23 0.00 Global High Yield Fund - A Net Inc £ 9.95 - 0.00 5.51 Latin American Fund GBP Unhedged £ 7.89 - 0.04 -

ACPI Global UCITS Funds Plc (IRL) Artemis Strategic Bond R Q Inc 54.07 57.40 0.05 4.21 The Castleton Growth Fund Ret Acc X F 108.83 - 0.14 0.00 Cavendish AIM Fund B Class 160.50 - 1.00 0.37 Vietnam Property Fund (VPF) NAV $ 0.81 - 0.01 0.00 Global Property - Acc £ 1.46 - 0.01 1.31 Hargreaves Lansdown Fd Mgrs (1100)F (UK)
www.acpishard.com Artemis UK Growth R Acc 457.25 484.01 4.13 0.55 The Castleton Growth Fund Ret Inc X F 109.27 - 0.14 0.00 Cavendish AIM Fund A Class 156.40 - 1.00 0.00 Global Property W Inc £ 1.19 - 0.01 3.06 PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT
Regulated Enquiries 0117 90090000
Artemis UK Smaller Cos R Acc 1148.86 1234.95 0.06 0.48 Cavendish Asia Pacific Fund B Class 155.70 - 2.30 1.58 DSM Capital Partners Funds (LUX) Global Special Sits £ 26.14 - 0.29 0.00 www.hl.co.uk
ACPI Emerging Mkts FI UCITS Fund USD A $ 109.24 - 0.12 0.00
www.dsmsicav.com Authorised Inv Funds
Artemis UK Special Sits R Acc 517.53 550.11 6.75 1.67 BlackRock (JER) Cavendish Asia Pacific Fund A Class 155.90 - 2.30 0.72 Index Emerging Markets P-Acc £ 0.98 - 0.02 2.67
ACPI Global Credit UCITS Funds USD A $ 13.96 - 0.00 0.00 Regulated Hargreaves Lansdown Funds
Artemis US Abs Ret I Acc 108.13 - 0.21 0.00 Regulated Cavendish Asia Pacific Fund C Acc 162.70 - 2.40 1.56 Index Europe ex UK P-Acc £ 1.03 - 0.01 2.46
ACPI Global Fixed Income UCITS Fund USD A $ 151.68 - 0.00 0.00 Global Growth I2 Acc € 140.82 - 1.67 0.00 Unit Trust
BlackRock UK Property £ 41.04 - 0.05 3.41
Artemis US Equity I Acc 115.71 - 1.45 0.29 Cavendish European Fund B Class 141.10 - 1.20 1.26 Index Japan P-Acc £ 1.15 - 0.00 1.56 HL Multi-Manager Special Situations Trust A Acc 266.86 280.90 -0.17 0.52
Q ACPI India Fixed Income UCITS Fund USD A $ 10.00 - -0.04 - Global Growth I1 Eur € 105.32 - 1.24 -
Blackrock UK Long Lease £ 1070.55 - -0.01 0.00 Fleming Financial Trust Investment Fund Limited (NZ)
Artemis US Select I Acc 117.89 - 1.60 0.13 Cavendish European Fund A Class 140.10 - 1.20 0.37 Index Pacific ex Japan P-Acc £ 1.01 - 0.02 4.03 Incorporated in New Zealand, Reg No 5141841 HL Multi-Manager Special Situations Trust M Acc 266.87 280.91 -0.17 0.42
ACPI India Fixed Income UCITS Fund USD A3 $ 85.47 - -0.35 0.00
BLK Intl Gold & General $ 3.81 4.03 0.09 0.00 Registered address: Level 5, 3 City Road, Graftn, Auckland, 1010, New Zealand
Artemis US Select I Inc 105.29 - 1.42 - Cavendish Japan Fund B Class 159.70 - 0.90 0.77 Index UK A-Acc £ 0.84 - 0.01 2.88 HL Multi-Manager Income & Growth Trust A Acc 165.11 173.72 0.11 3.83
ACPI International Bond UCITS Fund USD A $ 17.71 - 0.01 0.00 Eclectica Asset Management (UK) www.fftinvestmentfund.com
Artemis US Smlr Cos I Acc 119.17 - 1.62 0.00 Cavendish Japan Fund A Class 158.90 - 0.80 0.00 40 Dukes Place, London EC3A 7NH Index UK P-Acc £ 1.03 - 0.02 3.12 info@fftinvestmentfund.com HL Multi-Manager Income & Growth Trust M Acc 165.12 173.71 0.11 1.79
BONHOTE Order Desk and Enquiries: 0345 608 0941 Other International Funds
Artemis US Ex Alpha I Acc 123.44 - 1.61 0.15 Cavendish North American Fund B Class 192.60 - 2.90 0.58 Index US A-Acc £ 1.66 - 0.03 1.43 HL Multi-Manager Income & Growth Trust A Inc 99.29 104.46 0.07 3.91
ACPI Select UCITS Funds PLC (IRL) Other International Funds Authorised Corporate Director - Capita Financial Managers Fleming FT Investment Fund
Regulated Cavendish North American Fund A Class 187.30 - 2.80 0.00 Authorised Inv Funds Index US P-Acc £ 1.28 - 0.02 1.64 Fleming Fund £ 4.69 4.69 -0.01 - HL Multi-Manager Income & Growth Trust M Inc 99.29 104.46 0.07 1.81
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6725.00 - -45.00 2.25
ACPI Balanced UCITS Fund USD Retail $ 13.97 - 0.01 0.00 Cavendish Technology Fund B Class 290.30 - 2.30 0.09 CF Eclectica Agriculture A EUR Acc ♦ € 1.46 - 0.01 0.00 Index World A-Acc £ 1.44 - 0.02 1.81 HL Multi-Manager Balanced Managed Trust A Acc 182.73 192.18 -0.06 1.10
Artisan Partners Global Funds PLC (IRL) Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9652.00 - -153.00 0.94
ACPI Balanced UCITS Fund EUR Retail € 10.54 - 0.01 0.00 Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland Cavendish Technology Fund A Class 275.90 - 2.10 0.00 CF Eclectica Agriculture A GBP Acc ♦ 102.43 - 0.72 0.00 Index World P-Acc £ 1.17 - 0.01 1.92 HL Multi-Manager Balanced Managed Trust M Acc 182.74 192.19 -0.07 0.71
Tel: 44 (0) 207 766 7130 Foord Asset Mgt (Guernsey) Ltd (GSY)
ACPI Balanced UCITS Fund GBP Retail £ 10.66 - 0.01 0.00 Cavendish UK Balanced Income Fund B Class 137.10 - 0.90 5.21 CF Eclectica Agriculture A USD Acc ♦ $ 1.56 - 0.02 0.00 Japan £ 2.82 - 0.00 0.00 Regulated HL Multi-Manager Equity & Bond Trust A Inc 108.54 114.09 -0.01 2.25
FCA Recognised
Braemar Group PCC Limited (GSY)
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Artisan Partners Global Funds plc CF Eclectica Agriculture C EUR Acc ♦ € 1.51 - 0.00 0.32 Foord International Trust $ 34.89 - 0.07 0.00
Regulated Cavendish UK Balanced Income A Class 130.30 - 0.80 5.48 Japan Smaller Companies £ 2.04 - 0.01 0.00 HL Multi-Manager Equity & Bond Trust M Inc 108.53 114.07 -0.01 1.04
Artisan Emerging Markets I USD Acc $ 6.96 - 0.01 0.00 CF Eclectica Agriculture C GBP Acc ♦ 106.30 - 0.75 0.39
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - UK Agricultural Class A £ 1.26 - 0.00 0.00 Cavendish UK Select Fund B Class 145.30 - 1.70 1.90 MoneyBuilder Asset Allocator £ 1.18 - 0.01 0.52 HL Multi-Manager Equity & Bond Trust A Acc 146.96 154.47 -0.01 2.22
Artisan Global Equity Fund Class I USD Acc $ 14.71 - 0.18 0.00
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - UK Agricultural Class B £ 1.41 - 0.02 0.00 Cavendish UK Select Fund A Class 145.30 - 1.70 1.03 CF Eclectica Agriculture C USD Acc ♦ $ 1.61 - 0.02 0.40 MoneyBuilder Balanced £ 0.51 - 0.01 4.03 Franklin Templeton International Services Sarl (IRL) HL Multi-Manager Equity & Bond Trust M Acc 146.98 154.48 -0.01 1.03
Artisan Global Opportunities I USD Acc $ 12.43 - 0.11 0.00 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
ACPI Horizon UCITS Fund $ 12.98 - 0.04 0.00 Student Accom Class B £ 0.55 - -0.17 0.00 Money Builder Dividend £ 2.63 - 0.03 4.41 HL Multi-Manager Strategic Bond Trust A Acc 166.84 172.00 0.19 1.80
Other International Funds
Artisan Global Value Fund Class I USD Acc $ 16.04 - 0.12 0.00
MoneyBuilder Growth £ 0.75 - 0.01 2.46 Franklin Emerging Market Debt Opportunities Fund Plc HL Multi-Manager Strategic Bond Trust M Acc 166.83 171.98 0.19 0.89
Cedar Rock Capital Limited (IRL)
Artisan US Value Equity Fund Class I USD Acc $ 11.09 - 0.16 0.00 Franklin Emg Mkts Debt Opp CHFSFr 16.93 - -0.14 8.25
Regulated
Abbey Life Assurance Company Limited (UK) MoneyBuilder Growth ISA £ 0.76 - 0.01 2.63 HL Multi-Manager Strategic Bond Trust A Inc 138.83 143.12 0.16 1.82
100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900 Cedar Rock Capital Fd Plc $ 358.82 - -14.23 0.00 Franklin Emg Mkts Debt Opp EUR € 11.91 - -0.08 7.35
MoneyBuilder Income £ 0.35 - 0.00 3.23 HL Multi-Manager Strategic Bond Trust M Inc 138.82 143.10 0.16 0.91
additional fund prices can be found @ www.abbeylife.co.uk
Ashmore Sicav (LUX) Cedar Rock Capital Fd Plc £ 370.83 - -8.40 0.00 Franklin Emg Mkts Debt Opp GBP £ 9.93 - -0.13 7.14
Insurances MoneyBuilder Income -Gross £ 0.35 - 0.00 3.23 HL Multi Manager Emerging Markets A Acc 85.26 87.87 -0.05 0.33
2 rue Albert Borschette L-1246 Luxembourg
Life Funds Cedar Rock Capital Fd Plc € 348.08 - -3.48 0.00 Franklin Emg Mkts Debt Opp SGD S$ 21.92 - -0.27 6.31
FCA Recognised Multi Asset Adventurous A-Acc £ 1.32 - 0.01 0.47 HL Multi-Manager European A Acc 100.80 103.90 0.07 0.74
Prop. Acc. Ser 2 1561.20 1643.40 -0.30 -
EdenTree Investment Management Ltd (UK)
Ashmore SICAV Emerging Market Debt Fund $ 94.08 - 0.26 8.28 PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 Franklin Emg Mkts Debt Opp USD $ 16.83 - -0.15 7.14
Multi Asset Alloc Adventurous A-Acc £ 3.73 - 0.03 3.09 HL Multi-Manager UK Growth A Acc 103.29 106.48 0.04 1.24
Selective Acc. Ser 2 1585.30 1668.80 12.10 - CCLA Investment Management Ltd (UK) Authorised Inv Funds
Ashmore SICAV Emerging Market Frontier Equity Fund $ 146.67 - 0.14 0.93 Senator House 85 Queen Victoria Street London EC4V 4ET Charles Schwab Worldwide Funds Plc (IRL)
Multi Asset Alloc Strategic A-Acc £ 1.17 - 0.01 0.28
American Ser. 4 1686.10 1774.90 19.50 - Authorised Inv Funds Regulated Amity UK Cls A Inc 212.90 - 1.80 1.47
Ashmore SICAV Emerging Market Total Return Fund $ 80.46 - 0.17 5.86 Multi Asset Alloc Def - Gross A £ 1.12 - 0.01 0.28 Frontier Capital (Bermuda) Limited
The Public Sector Deposit Fund Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Amity UK Cls B Inc 213.20 - 1.80 2.27 Haussmann
Custodian Ser. 4 491.70 517.60 3.70 - Other International
Ashmore SICAV Global Small Cap Equity Fund $ 125.42 - 0.85 0.00 Other International Funds
The Public Sector Deposit Fund-share class 1 ♦ F 100.00 - 0.00 0.52 Multi Asset Alloc Def - Net A £ 1.11 - 0.00 0.25
Higher Income Cls A Inc 122.70 - 1.00 4.97 Commercial Property-GBP Class £ 71.42 - -0.53 -
Equity Ser. 4 562.30 591.90 9.60 - Haussmann Cls A $ 2684.67 - -11.68 0.00
Ashmore SICAV Local Currency Fund $ 81.47 - 0.06 0.31 Multi Asset Alloc Growth A £ 1.20 - 0.01 0.00
The Public Sector Deposit Fund-share class 2 ♦ F 100.00 - 0.00 0.32 Global Real Estate-GBP C Class £ 45.26 - -0.50 -
European Ser 4 572.60 602.70 8.00 - Chartered Asset Management Pte Ltd Higher Income Cls B Inc 126.30 - 0.90 4.88
Haussmann Cls C € 2349.99 - -9.81 0.00
EM Mkts Corp.Debt USD F $ 91.17 - 0.14 8.26 Other International Funds Multi Asset Defensive £ 1.22 - 0.00 0.36
The Public Sector Deposit Fund-share class 3 ♦ F 100.00 - 0.00 0.37
Fixed Int. Ser. 4 887.40 934.10 1.40 - UK Equity Growth Cls A Inc 240.10 - 2.00 0.60
EM Mkts Loc.Ccy Bd USD F $ 76.26 - 0.07 4.34 Haussmann Cls D SFr 1244.25 - -5.57 0.00
The Public Sector Deposit Fund-share class 4 ♦ F 100.00 - 0.00 0.44 CAM-GTF Limited $ 279984.63 279984.63 -8357.62 0.00 Multi Asset Defensive - Gross £ 1.22 - 0.00 0.35
Intl Ser. 4 439.90 463.10 5.60 - UK Equity Growth Cls B Inc 246.10 - 2.10 1.21
The Public Sector Deposit Fund-share class 5 ♦ F 100.00 - 0.00 0.31 CAM GTi Limited $ 649.70 - 30.41 0.00 Multi Asset Growth £ 1.36 - 0.01 0.35
Japan Ser 4 376.50 396.30 3.10 - Amity Balanced For Charities A Inc 107.00 - 0.70 6.14
Raffles-Asia Investment Company $ 1.66 1.66 0.11 7.80 MultiManager Balanced £ 1.09 - 0.00 0.56
Heartwood Wealth Management Limited (IRL)
Man. Ser. 4 1658.10 1745.40 17.70 - Amity European Fund Cls A Inc 199.40 - 2.30 1.24 Regulated
CCLA Investment Management Ltd (UK) Multi Asset Open Growth A-Acc £ 0.46 - 0.00 0.80 Heartwood Caut Multi Asset B Acc 138.73 - 0.07 0.00
Money Ser. 4 524.40 552.00 0.00 - Amity European Fund Cls B Inc 202.00 - 2.30 2.11
Senator House 85 Queen Victoria Street London EC4V 4ET Multi Asset Open Strategic A-Acc £ 1.22 - 0.01 1.23
Prop. Ser. 4 1109.40 1167.80 -0.20 - Property & Other UK Unit Trusts Amity Global Equity Inc for Charities A Inc 102.30 - 1.00 4.06
Multi Asset Open Strategic A-Inc £ 0.29 - 0.00 2.50
Fundsmith LLP (1200)F (UK)
CBF Church of England Funds
Custodian Ser 5 472.20 497.10 3.60 - Amity International Cls A Inc 201.70 - 1.80 1.39 PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815 Henderson Global Investors (UK)
Investment Inc 1328.59 1343.28 -20.74 3.78 Multi Asset Strategic £ 1.53 - 0.01 0.53 www.fundsmith.co.uk, enquiries@fundsmith.co.uk PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
International Ser 5 422.50 444.70 5.40 -
Aspect Capital Ltd (UK) Amity International Cls B Inc 203.90 - 1.80 2.26
Authorised Inv Funds www.henderson.com
Other International Funds Investment Acc 2706.55 2736.49 -42.27 - Open World A-Acc £ 1.20 - 0.01 0.00
Amity Sterling Bond Fund A Inc 105.30 - 0.00 5.21 Fundsmith Equity T Acc 221.25 - 1.65 1.18 Authorised Inv Funds
Managed Ser 5 1592.30 1676.10 17.00 - Aspect Diversified USD $ 418.24 - 5.95 0.00 Global Equity Inc 150.77 152.44 -2.66 4.31 Multi Asset Income A Gross Acc £ 1.56 - 0.00 3.68 Asia Pacific Capital Growth A Acc 689.00 - -1.70 0.93
Money Ser 5 513.40 540.40 0.00 - Cheyne Capital Management (UK) LLP (IRL) Amity Sterling Bond Fund B Inc 113.80 - 0.00 5.20 Fundsmith Equity T Inc 208.95 - 1.56 1.19
Aspect Diversified EUR € 251.56 - 3.58 - Global Equity Acc 220.40 222.84 -3.88 - Regulated Multi Asset Income A Gross Inc £ 1.09 - 0.01 4.75 Asian Dividend Income Inc 80.92 85.39 -0.04 6.82
Property Ser 5 1065.40 1121.50 -0.20 - Aspect Diversified GBP £ 128.75 - 1.85 0.00 Cheyne Convertibles Absolute Return Fund € 1369.28 - 1.09 0.00
UK Equity Inc 144.65 146.10 -2.52 4.05 Multi Asset Income A Net Acc £ 1.48 - 0.01 3.71 Cautious Managed A Acc 235.90 - 0.40 3.25
Pension Funds Edinburgh Partners Limited (IRL)
Aspect Diversified CHF SFr 120.28 - 1.71 0.00 Cheyne Global Credit Fund € 118.76 - 0.01 0.00 GAM Limited (2300)F (UK)
UK Equity Acc 214.51 216.66 -3.74 - 27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Multi Asset Income A Net Inc £ 1.09 - 0.01 4.73 Cautious Managed A Inc 145.90 - 0.30 3.30
American 1948.10 2050.70 27.40 - GAM Sterling Management Limited
Aspect Diversified Trends USD $ 126.57 - 1.10 0.00 Fixed Interest Inc 161.82 162.47 1.45 3.96 Cheyne European Mid Cap Fund € 1150.92 - 10.51 0.00 Dealing - Fax only - +353 1 434 5230 12 St James's Place London SW1A 1NX. 0800 919 927
Equity 4942.40 5202.50 85.40 - South East Asia £ 7.91 - 0.11 0.12 China Opportunities A Acc 822.40 - -0.50 0.41
FCA Recognised Internet: gam.com
Aspect Diversified Trends EUR € 126.68 - 1.10 0.00 Fixed Interest Acc 490.84 492.81 4.38 -
European 1150.90 1211.50 15.30 - Edinburgh Partners Opportunities Fund PLC Special Situations £ 30.44 - 0.40 0.79 Authorised Inv Funds Emerging Markets Opportunities A Acc 139.30 - -0.30 0.79
Aspect Diversified Trends GBP £ 131.48 - 1.14 0.00 Property Fund Inc 132.11 136.53 0.11 6.51 Cheyne Capital Management (UK) LLP European Opportunities I EUR € 2.59 - 0.02 2.26 GAM Funds OEIC
Fixed Int. 1627.50 1713.20 3.60 - Sterling Core Plus Red Dur £ 9.97 - -0.01 - European Growth A Acc 166.70 - 0.30 0.56
Other International Funds GAM Global Diversified Acc 3805.45 - 28.14 0.00
Property Fund Acc 234.22 242.07 2.73 - European Opportunities I GBP £ 1.81 - 0.01 2.48 Strategic Bond £ 0.31 - 0.00 2.85 European Selected Opportunities A Acc 1264.00 - 0.00 0.68
International 934.90 984.10 13.20 - Cheyne European Event Driven Fund € 137.91 - -3.22 0.00
GAM North American Gwth Acc 3149.55 - 38.65 0.00
Atlantas Sicav (LUX) European Opportunities I USD $ 2.77 - 0.01 2.01 Strategic Bond Gross £ 0.31 - 0.00 2.84 European Special Situations A Acc 94.66 - -0.29 1.05
Japan 396.30 417.10 3.20 -
Asset Management
Regulated Cheyne European High Yield Fund € 128.43 - -3.51 0.00
GAM UK Diversified Acc 1736.09 - 5.92 1.13
European Opportunities A EUR € 2.53 - 0.02 1.57
Asset Manageme
Managed 4293.80 4519.80 48.30 - CCLA Fund Managers Ltd (UK) Target 2015 £ 0.50 - 0.00 0.27 Fixed Interest Monthly Income A Inc 21.74 22.80 0.06 5.40
American Dynamic $ 3457.93 - -90.79 0.00 Cheyne Multi Strategy Liquid Fund $ 124.23 - 2.46 -
Senator House 85 Queen Victoria Street London EC4V 4ET Global Opportunities I USD $ 1.66 - 0.01 2.05
Property 2875.40 3026.70 -0.50 - Target 2020 £ 0.56 - 0.00 0.50 Global Care Growth A Inc 198.10 - -0.50 0.00
American One $ 3190.90 - -52.74 0.00 Property & Other UK Unit Trusts Cheyne Real Estate Credit Holdings Fund £ 160.92 - 7.23 0.00
COIF Charity Funds (UK) Global Opportunities I GBP £ 1.09 - 0.00 1.95 Target 2025 £ 1.31 - 0.00 0.28 GAM Limited (IRL)
Global Equity Income A Inc 49.11 - -0.03 3.82
Security 1476.30 1554.00 0.00 - Bond Global € 1426.24 - 8.75 0.00 Cheyne Real Estate Debt Fund Class A1 £ 130.82 - 0.23 0.00 FCA Recognised
Investment Inc 1224.93 1238.48 -2.08 3.62 Global Opportunities I EUR € 1.52 - -0.01 1.98 Target 2030 £ 1.41 - 0.01 0.25 GAM Fund Management Ltd
Selective 2023.50 2130.00 16.40 - Global Growth Fund 2033.67 2125.61 -0.05 0.00
Eurocroissance € 898.03 - -5.50 0.00 Cheyne Total Return Credit Fund - December 2017 Class $ 182.18 - 10.16 0.00
Investment Acc 11795.91 11926.38 -20.04 - Global Opportunities A GBP £ 1.02 - 0.00 1.47 Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927
Formerly Hill Samuel Life Assurance Ltd UK Select £ 2.47 - 0.03 0.86 Global Technology A Acc 956.20 - 1.10 0.00
Far East $ 685.43 - -5.00 0.00 Cheyne Total Return Credit Fund December 2019 $ 137.99 - 13.28 - GAM Star Fund Plc
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 Ethical Invest Inc 188.74 190.83 -0.24 3.73 Pan European Opportunities I EUR € 1.57 - 0.01 - UK Growth £ 3.62 - 0.04 0.00 Multi-Manager Absolute Return A Acc 133.80 - 0.00 0.39
Managed Ser A (Life) 1557.20 1647.80 -0.30 - GAM Star Asia-Pacific Eqty USD Acc F $ 12.19 - 0.15 0.00
Ethical Invest Acc 242.99 245.67 -0.30 - UK Smaller Companies £ 2.12 - 0.02 0.19 Multi-Manager Active A Acc ▲ 172.20 - -0.10 0.00
Managed Ser A (Pensions) 1038.30 1093.00 -0.20 - Atlantis Investment Management Ltd (IRL) Cohen & Steers SICAV (LUX) GAM Star Asian Eqty USD Ord Acc F $ 13.61 - 0.16 0.00
Global Equity Inc 144.14 145.73 -0.26 4.41 WealthBuilder A Acc £ 1.02 - 0.01 0.62
2nd Floor, 13 St Swithin's Lane, London EC4N 8AL Regulated Multi-Manager Distribution A Inc 127.00 - 0.80 3.13
Formerly Target Life Assurance Ltd GAM Star Balanced GBP Acc £ 10.34 - 0.02 0.00
www.atlantis-investmenet.com, Tel: 0207 877 3377 Global Equity Acc 213.85 216.22 -0.40 - Fidelity PathFinder
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 European Real Estate Securities € 24.0041 - -0.0294 1.53 Multi-Manager Diversified A Acc 77.57 - 0.26 2.86
Regulated GAM Star Cap.Appr.US Eqty USD Inc F $ 17.19 - 0.36 0.00
Managed (Life) 1582.40 1665.60 -0.20 - Fixed Interest Inc 132.58 133.11 1.07 4.14 Fidelity PathFinder Foundation 1 Gross Acc (clean) £ 1.09 - 0.00 -
Europ.RealEstate Sec. IX € 32.1356 - -0.0394 0.00 Multi-Manager Global Select Acc 175.70 - 0.70 0.00
Atlantis China Fund $ 6.44 - 0.00 0.00 GAM Star Cat Bond USD Acc $ 12.71 - 0.01 0.00
Managed Growth (Life) 498.60 524.80 -0.10 - Fixed Interest Acc 760.17 763.22 6.12 - Fidelity PathFinder Foundation 1 Acc (clean) £ 1.09 - 0.00 -
Gbl Listed Infrastructure I $ 10.0317 - 0.0477 - Multi-Manager Income & Growth A Acc 151.30 - 1.00 2.06
Atlantis China Healthcare Fund $ 2.04 - 0.02 0.00 GAM Star Cautious GBP Acc £ 10.38 - 0.04 0.00
Managed (Pensions) 6229.20 6557.00 -1.00 - Property Inc 113.52 117.33 0.05 5.79 Fidelity PathFinder Foundation 2 Acc (clean) £ 1.09 - 0.01 -
Gbl Listed Infrastructure IX $ 10.0317 - 0.0477 - Multi-Manager Income & Growth A Inc 140.00 - 0.90 2.08
Atlantis Japan Opportunities Fund $ 2.47 - 0.03 0.00 EFG Hermes GAM Star China Equity USD Acc F $ 23.27 - -0.04 0.00
Managed Growth (Pensions) 609.50 641.60 -0.20 - Property Acc 248.62 256.95 2.77 - Fidelity PathFinder Foundation 3 Acc (clean) £ 1.08 - 0.01 -
Gbl RealEstate Sec. I $ 10.6594 - 0.0482 1.38 DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Multi-Manager Managed A Acc 225.20 - -0.10 0.42
Atlantis Asian Fund $ 6.18 - 0.02 0.00 GAM Star Cont European Eqty GBP Acc F £ 3.53 - -0.01 0.00
additional fund prices can be found on our website Local Authorities Property Fd (LAMIT) (UK) Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com Fidelity PathFinder Foundation 4 Acc (clean) £ 1.09 - 0.01 -
Gbl RealEstate Sec. IX $ 12.6066 - 0.0570 0.00 Multi-Manager Managed A Inc 221.10 - -0.10 0.41
Other International Funds GAM Star Cred Opportunities GBP Acc £ 12.32 - 0.01 4.60
Property 274.76 295.14 2.73 4.81 Fidelity PathFinder Foundation 5 Acc (clean) £ 1.19 - 0.02 -
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Sterling Bond Acc 196.01 204.80 1.87 2.90
GAM Star Defensive GBP Acc £ 10.88 - 0.02 0.00

AXIOM
Fidelity PathFinder Focussed 1 Gross Acc (clean) £ 1.10 - 0.00 -
Consistent Unit Tst Mgt Co Ltd (1200)F (UK) Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00
GAM Star Discretionary FX USD Acc F $ 13.03 - 0.00 0.00
Sterling Bond Inc 60.76 63.48 0.58 2.94
CG Asset Management Limited (IRL) PO BOX 10117, Chelmsford, Essex, CM1 9JB Fidelity PathFinder Focussed 1 Acc (clean) £ 1.10 - 0.00 -
ALTERNATIVE INVESTMENTS Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Saudi Arabia Equity Fund SR 12.66 - -0.19 0.00 Strategic Bond A Inc 125.30 - 0.20 5.25
Dealing & Client Services 0845 0264281 GAM Star Dynamic Gbl Bd USD Acc H $ 9.77 - 0.01 0.00
Fidelity PathFinder Focused 2 Acc (Clean) £ 1.11 - 0.00 -
00 353 1 434 5098 Authorised Inv Funds UK & Irish Smaller Companies A Acc 540.20 - -1.00 0.00
GAM Star Emerg. Market Rates USD Acc F $ 11.49 - 0.02 0.00
FCA Recognised Fidelity PathFinder Focussed 3 Acc (clean) £ 1.11 - 0.01 -
Consistent UT Inc 54.71 55.35 0.83 4.72 UK Absolute Return A Acc 150.00 - 0.10 0.00
Capital Gearing Portfolio Fund Plc £ 26720.11 26720.11 -10.84 0.62 Electric & General (1000)F (UK) GAM Star European Eqty USD Acc F $ 23.20 - -0.08 0.00
Algebris Investments (IRL) Axiom Alternative Investments (FRA) Consistent UT Acc 127.51 129.01 1.94 4.57 Stuart House St.John's Street Peterborough PE1 5DD Fidelity PathFinder Focussed 4 Acc (clean) £ 1.13 - 0.01 -
CG Portfolio Fund Plc UK Alpha A Acc ♦ 113.30 - 0.10 1.90
Regulated 1 Conduit Street - 4th floor - London W1S 2XA Orders & Enquiries: 0845 850 0255 GAM Star Flexible Gbl Port GBP Ac £ 12.66 - 0.03 0.00
Practical Investment Inc 202.49 207.56 1.59 3.95 Fidelity PathFinder Focussed 5 Acc (clean) £ 1.15 - 0.00 -
www.axiom-ai.com Tel: +44 330 822 0374 Real Return Cls A £ 164.54 164.54 -1.00 2.40 Authorised Inv Funds UK Equity Income & Growth A Inc 595.50 - 0.80 3.93
Algebris Financial Credit Fund - Class I EUR € 132.95 - 0.06 0.00 GAM Star GAMCO US Equity Acc F $ 13.35 - 0.20 0.00
Regulated Authorised Corporate Director - Carvetian Capital Management Fidelity PathFinder Freedom 1 Gross Acc (clean) £ 1.07 - 0.01 -
Practical Investment Acc 988.80 1013.58 7.75 3.84 UK Index A Acc 489.30 - 0.60 2.56
Algebris Financial Income Fund - Class I EUR € 120.86 - 0.53 0.00 Dollar Fund Cls D £ 128.06 128.06 -0.85 1.63 GAM Star Global Rates USD Acc F $ 12.46 - -0.05 0.00
Axiom Contingent Capital € 1028.48 - 2.63 - Electric&General Net Income A 146.50 - 1.60 1.99 Fidelity PathFinder Freedom 2 Acc (clean) £ 1.06 - 0.01 -
Capital Value Fund Cls V £ 129.54 129.54 -0.15 0.27 UK Property A Acc 193.08 203.24 0.05 4.04
Algebris Financial Equity Fund - Class B EUR € 99.77 - 0.01 - Axiom Contingent Capital £ 1032.27 - 2.65 - GAM Star Global Selector USD Acc F $ 12.78 - 0.04 0.00
Fidelity PathFinder Freedom 1 Acc (clean) £ 1.06 - 0.00 -
UK Property A Inc 97.68 102.81 0.03 4.16
Algebris Asset Allocation Fund - Class B EUR € 101.55 - -0.05 - Axiom Equity $ 929.95 - -1.82 - GAM Star Japan Eqty USD Acc F $ 13.58 - 0.19 0.00
Ennismore Smaller Cos Plc (IRL) Fidelity PathFinder Freedom 3 Acc (clean) £ 1.05 - 0.01 -
UK Tracker A Acc 219.00 - 0.30 2.28
Axiom Equity € 975.50 - -1.92 0.00 5 Kensington Church St, London W8 4LD 020 7368 4220 GAM Star Keynes Quant Strat USD Acc F $ 12.09 - 0.05 0.00
Fidelity PathFinder Freedom 4 Acc (clean) £ 1.04 - 0.00 -
FCA Recognised US Growth A Acc 767.50 - 2.60 0.00
Alken Asset Management (LUX) Axiom Obligataire $ 1787.42 - 1.74 0.00 GAM Star Local EM Rates and FX USD Acc $ 10.63 - -0.07 0.00
Ennismore European Smlr Cos NAV £ 97.85 - 0.12 0.00 Fidelity PathFinder Freedom 5 Acc (clean) £ 1.12 - 0.01 -
61 Conduit Street, London, W1S 2GB GAM Star North of South EM Equity Acc F $ 10.15 - -0.02 0.00
Axiom Obligataire € 1785.34 - 1.80 0.00
www.alken-am.com Ennismore European Smlr Cos NAV € 139.78 - 0.16 0.00 Fidelity PathFinder Income 1 Income (clean) £ 1.02 - 0.00 3.75
Regulated Axiom Obligataire £ 1796.13 - 1.64 0.00 Crèdit Andorrà Asset Management (LUX) GAM Star Technology USD Acc F $ 15.58 - 0.23 0.00
Fidelity PathFinder Income 1 Gross Income (clean) £ 1.02 - 0.00 4.64
www.creditandorra.com
Alken European Opportunities € 217.95 - 0.29 0.00 GAM Star US All Cap Eqty USD Acc F $ 13.65 - 0.19 0.00
Canada Life Investments (UK) FCA Recognised Fidelity PathFinder Income 2 Income (clean) £ 1.03 - 0.01 3.42
Alken European Opportunities £ 121.96 - 0.17 0.00 1-6 Lombard Street, EC3V 9JU. Dealing 0345 606 6180 Ennismore European Smlr Cos Hedge Fd
Crediinvest SICAV Money Market Eur I € 11.20 - 0.00 0.00 GAM Star Worldwide Eqty USD Acc F $ 3160.49 - 5.51 0.00
BLME Asset Management (LUX) Other International Funds Fidelity PathFinder Income 2 gross £ 1.03 - 0.00 4.31
Authorised Inv Funds
Alken Absolute Return € 144.49 - -0.38 0.00 BLME Sharia'a Umbrella Fund SICAV SIF Crediinvest SICAV Money Market Usd A $ 10.02 - 0.00 0.00 NAV € 485.30 - 14.53 0.00 Fidelity PathFinder Income 2 Gross Income (clean) £ 1.03 - 0.00 4.26
Regulated Asia Pacific B Acc 779.49 - 10.88 1.12
Alken Absolute Return £ 117.26 - -0.31 0.00
Income Fund - Share Class A Acc $ 1136.79 - -0.35 0.00 Balanced B Acc 147.05 - 1.27 1.48
Crediinvest SICAV Fixed Income Eur € 10.76 - 0.01 0.00
Fidelity PathFinder Income 3 Income (clean) £ 1.03 - 0.00 3.85 GYS Investment Management Ltd (GSY) Hermes Investment Funds Plc (IRL)
Alken Small Cap € 192.07 - -0.60 0.00 Regulated Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
Crediinvest SICAV Fixed Income Usd $ 10.44 - 0.00 0.00 Institutional OEIC Funds
Income Fund - Share Class B Acc $ 1157.27 - -0.36 0.00 Corporate Bond B Inc 204.46 - 0.42 4.09 Equinox Fund Mgmt (Guernsey) Limited (GSY)
Taurus Emerging Fund Ltd $ 190.92 194.82 -1.17 0.00 FCA Recognised
Crediinvest SICAV Spanish Value € 255.83 - 2.34 0.00 Regulated America £ 4.00 - 0.06 0.53
Income Fund - Share Class C Acc $ 1004.61 - -0.32 0.00 European B Acc 251.98 - 1.95 1.60 Hermes Abs Return Credit Fund Class F Acc £ £ 1.00 1.00 0.00 -
Equinox Russian Opportunities Fund Limited $ 119.90 - 3.71 0.00
Crediinvest SICAV International Value € 226.98 - 1.96 0.00 Emerging Markets £ 3.10 - 0.03 0.82
Income Fund - Share Class D Dis $ 995.11 - -0.31 1.22 Global Bond B Inc 90.32 - -0.01 2.97 Hermes Abs Return Credit Fund Class R Acc € € 2.05 2.05 0.00 -
Europe £ 4.08 - 0.05 1.57 Generali International Limited
Crediinvest SICAV Big Cap Value € 16.24 - 0.13 0.00 Hermes Active UK Inflation Fund Class F Acc £ 1.27 1.27 -0.01 0.00
Income Fund - Share Class G Acc £ 1077.49 - -0.29 0.00 Global Equity B Acc 590.18 - 4.60 1.11 PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
Crediinvest SICAV US American Value $ 18.29 - 0.27 0.00 Euronova Asset Management UK LLP (CYM) Fidelity Pre-Retirement Bond Fund £ 117.20 - 0.10 3.06 International Insurances
Income Fund - Share Class M Acc € 1011.00 - -0.33 0.00 Global Equity Income B Inc 120.73 - 1.14 3.99 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.55 1.55 0.03 0.00
Regulated
Crediinvest SICAV Sustainability € 15.74 - 0.12 0.00 Global Focus £ 2.84 - 0.04 1.63 Global Multi-Strategy Managed $ 4.79 5.16 -0.05 0.00
Income Fund - Share Class W DisA$ 1032.72 - -0.15 - Global High Yield Bond B Inc 93.88 - 0.00 4.91 Smaller Cos Cls One Shares (Est) € 34.97 - -0.32 0.00 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.50 3.50 0.06 0.00
Index Linked Bond £ 2.59 - -0.01 0.73 UK Multi-Strategy Managed £ 4.85 5.22 -0.04 0.00
Allianz Global Investors GmbH(1200) F (LUX) Gl Sukuk Fund - Share Class A Acc $ 1226.28 - -1.39 0.00 Global Infrastructure B Acc 109.56 - 0.98 0.93 Smaller Cos Cls Two Shares (Est) € 24.46 - -0.21 0.00 Hermes Global Emerging Markets Fund Class F Acc £ 1.15 1.15 0.01 0.00
FCA Recognised Index Linked Bond Gross £ 3.13 - 0.00 0.73 EU Multi-Strategy Managed € 3.06 3.30 0.00 0.00
Gl Sukuk Fund - Share class B Acc £ 1094.73 1094.73 -1.19 0.00 Global Resource B Acc 75.26 - 1.14 0.88 Daiwa SB Investments (UK) Ltd (LUX) Smaller Cos Cls Three Shares (Est) € 12.32 - -0.10 0.00 Hermes Global Emerging Markets Fund Class R Acc € 3.04 3.04 0.02 0.00
Allianz Best Styles Global Equity £ 106.70 106.70 1.68 - 5 King William Street, London EC4N 7DA Index-Linked Bond Fund Gross Inc £ 12.22 - -0.02 0.73 Global Bond USD $ 3.44 3.71 -0.03 0.00
Japan B Acc 51.84 - 0.42 0.95 www.daiwasbi.co.uk 0207 597 7000 Smaller Cos Cls Four Shares (Est) € 15.83 - -0.14 0.00 Hermes Global Equity Fund Class F Acc £ 1.52 1.52 0.02 0.00
Allianz Global Fundamental Strategy £ 106.64 106.64 0.61 - Japan £ 2.08 - 0.00 0.80
Regulated Hermes Global Equity Fund Class R Acc € 4.15 4.15 0.05 0.00
Bank of America Cap Mgmt (Ireland) Ltd (IRL) Portfolio III B Acc 107.00 - 0.35 2.37
Allianz Global Small Cap Equity £ 109.91 109.91 1.28 - DSBI Japan Equity Fundamental Active I JPY ¥ 12859.13 12859.13 99.62 0.00 Long Bond £ 0.50 - 0.00 2.91 Genesis Asset Managers LLP
Regulated Hermes Global ESG Equity Fund Class F Acc £ 1.16 1.16 0.01 0.00
Portfolio IV B Acc 109.25 - 0.54 2.48
Other International Funds

Amundi Funds (LUX)

Global Liquidity USD $ 1.00 - 0.00 0.26
Portfolio V B Acc 108.76 - 0.78 1.69
DSBI Japan Equity Fundamental Active I GBP £ 127.72 127.72 0.98 0.00

DSBI Japan Equity Fundamental Active A EUR € 122.61 128.74 0.96 0.00
Long Bond Gross

Long Bond Fund Gross Inc

£ 0.82

£ 11.11
-

-
0.00 2.86

0.01 2.91
Emerging Mkts NAV £ 5.19Asset Management
- 0.01 0.00 Hermes Global High Yield Bond Fund Class F Acc £ 1.03 1.03 0.00 0.00

Portfolio VI B Acc 107.83 - 0.96 1.67 Hermes Global High Yield Bond Fund Class R Acc € 2.79 2.79 0.00 0.00
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332
Barclays Investment Funds (CI) Ltd (JER) Pacific (Ex Japan) £ 3.47 - 0.06 1.97
www.amundi-funds.com Portfolio VII B Acc 104.56 - 1.09 1.61 Hermes Global Small Cap Fund Class F Acc £ £ 0.99 0.99 0.01 -
FCA Recognised 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Guardian (UK)
DAVIS Funds SICAV (LUX) Pan European £ 2.64 - 0.03 2.07
FCA Recognised North American B Acc 815.58 - 11.75 0.75 Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151 Hermes Global Small Cap Fund Class R Acc € € 2.04 2.04 0.02 -
Bd. Euro Corporate AE Class - R - EUR € 18.57 - 0.01 0.00 Regulated Eurobank Fund Management Company (Luxembourg) S.A. Insurances
Bond Funds Reduced Duration UK Corporate Bond £ 10.40 - -0.06 3.81
Strategic Return B Acc 98.53 - 0.79 0.00 Regulated Hermes Multi Asset Inflation Fund Class F GBP Acc £ 1.00 1.00 0.01 -
Bd. Global AU Class - R - USD $ 25.45 - 0.04 0.00 Davis Value A $ 41.35 - 0.62 0.00 Guardian Assurance
Sterling Bond F £ 0.45 - 0.00 3.34 Reduced Duration UK Corporate Bond Gross £ 10.58 - -0.06 3.81
Total Return B Acc 101.14 - 0.58 2.94 (LF) Absolute Return € 1.33 - 0.00 0.00 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.03 1.03 0.00 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Davis Global A $ 28.81 - 0.23 0.00 Equity S-GH Class B £ 12.02 - 0.02 -
Reduced Duration UK Corporate Bond Inc £ 9.78 - -0.05 3.81
UK Equity B Acc 110.90 - 1.15 1.69 (LF) Eq Emerging Europe € 0.78 - 0.01 0.00 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.31 1.31 0.02 0.00
Eq. Emerging World AU Class - R - USD $ 82.33 - 0.02 0.00 Managed Fund Bond £ 23.27 24.24 0.10 -
Baring Fund Managers Ltd (1200)F (UK)
(LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00
Reduced Duration UK Corp Bond Gross Inc £ 9.79 - -0.05 3.81
UK Equity & Bond Income B Inc 236.12 - 2.20 5.12 Choices Wth-Pfts Lg-tm 320.60 337.50 0.00 - Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.27 1.27 0.01 1.32
Eq. Greater China AU Class - R - USD $ 558.37 - -2.18 0.00 Dealing and Enquiries 020 7214 1004 Discretionary Unit Fund Mngrs (1000)F (UK)
Select Emerging Markets Equities £ 1.16 - 0.02 1.63
Fund Information: www.barings.com UK Equity Income B Inc 423.63 - 4.67 5.06 1 Poultry, London EC2R 8JR 020 7 415 4130 (LF) Eq Mena Fund € 13.36 - 0.02 0.00 Hermes Sourcecap EU Alpha Fund Class R Acc € 3.31 3.31 0.04 0.00
Eq. Latin America AU Class - R - USD $ 334.08 - 2.88 0.00 Choices Wth-Pfts St-tm 271.60 285.80 0.10 -
Authorised Inv Funds Authorised Inv Funds Select European Eqts £ 1.73 - 0.01 1.88
UK Government Bond B Inc 46.87 - 0.01 1.98 (LF) Greek Government Bond € 19.72 - -0.17 - Hermes Sourcecap EX UK Fund Class F Acc £ 1.36 1.36 0.02 0.00
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.79 - 0.00 0.00 Multi Asset A Acc ... C 156.40 - 0.90 1.50 Choices Managed 611.75 643.95 0.50 -
Disc Inc 1560.30 1608.60 -4.80 0.00 Select Global Equities £ 3.02 - 0.04 1.13
(LF) Greek Corporate Bond € 12.22 - 0.00 - Hermes Sourcecap EX UK Fund Class R Acc € 3.32 3.32 0.04 0.00
Multi Asset A Inc ... C 149.10 - 0.80 1.27 Choices Equity 677.93 713.61 0.62 -
Do Accum 5879.50 6061.40 7.40 0.00 South East Asia £ 3.52 - 0.06 2.05
(LF) FOF Dynamic Fixed Inc € 11.95 - 0.00 0.00 Hermes UK Small & Mid Cap Fund Class F Acc £ 1.67 1.67 0.02 0.00
Charity Fund Capita Asset Services (UK) Freedom With Pfts Long-Tm 219.90 231.50 0.00 -
The Antares European Fund Limited 40 Dukes Place, London EC3A 7NH Sterling Core Plus Bond Gr Accum £ 2.05 - 0.00 3.47
Enquiries 020 7214 1763 (LF) FOF Real Estate € 16.88 - 0.04 0.00 Hermes UK Small & Mid Cap Fund Class R Acc € 5.21 5.21 0.03 0.00
Other International Freedom With Pfts Short-Tm 197.70 208.10 0.00 -
Targeted Return Fund Acc 145.90 146.70 0.90 3.16 Order Desk and Enquiries: 0345 922 0044 Sterling Core Plus Bond Inc £ 1.34 - 0.01 3.58
AEF Ltd Usd $ 654.57 - -7.40 - Authorised Inv Funds Freedom Managed 357.57 376.39 1.59 - Hermes US All Cap Equity Class F Stg £ Acc £ 0.99 0.99 0.01 -
Targeted Return Fund Inc 112.10 112.70 0.60 3.22 UK £ 3.61 - 0.04 2.24
AEF Ltd Eur € 656.97 - -7.67 0.00 CF Heartwood Cautious B Acc X 127.31 - 0.48 0.15 Hermes US All Cap Equity Class R € Acc € 2.03 2.03 0.02 -
Freedom Equity 400.65 421.74 4.21 -
UK Aggreg Bond Gr Accum £ 1.81 - 0.00 4.63
CF Heartwood Cautious Income B Inc X 109.91 - 0.37 2.41 Hermes US SMID Equity Fund Class F Acc £ 1.63 1.63 0.02 0.00
Corp Pens Mananged 215.96 215.96 0.17 -
Baring International Fd Mgrs (Ireland) (IRL) UK Aggregate Bond Inc £ 1.22 - 0.01 3.18
CF Heartwood Growth B Acc X 143.27 - 1.20 0.66 Hermes US SMID Equity Fund Class R Acc € 3.64 3.64 0.05 0.00
Arisaig Partners Corp Pens Equity 221.34 221.34 0.21 -
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 UK Corporate Bond £ 1.22 - 0.00 3.99
Other International Funds CF Heartwood Balanced Income B Inc X 112.00 - 0.71 2.99 Dodge & Cox Worldwide Funds (IRL)
FCA Recognised Corp Pens Fixed Interest 296.16 296.16 1.68 -
Arisaig Africa Consumer Fund Limited $ 13.94 - -0.01 0.00 6 Duke Street,St.James,London SW1Y 6BN UK Corporate Bond - Gross £ 2.26 - 0.01 3.85
ASEAN Frontiers A GBP Inc £ 106.72 - 0.59 0.60 CF Heartwood Balanced B Acc X 124.46 - 0.67 0.31 Hermes Property Unit Trust (UK)
www.dodgeandcox.worldwide.com 020 3713 7664 Corp Pens Index Linked 334.16 334.16 -2.94 -
Arisaig Asia Consumer Fund Limited $ 62.97 - -0.45 0.00 FIL Investment Services (UK) Limited (1200)F (UK) UK Gilt Bond £ 1.27 - 0.00 1.97
Asia Growth A GBP Inc H £ 43.35 - 0.23 0.00 CF Heartwood Defensive Multi Asset Fund B Accumulation 109.19 - 0.20 0.00 FCA Recognised Property & Other UK Unit Trusts
130, Tonbridge Rd, Tonbridge TN11 9DZ Corp Pens Deposit 190.96 190.96 0.01 -
Arisaig Global Emerging Markets Consumer UCITS € 12.38 - -0.03 0.00 Dodge & Cox Worldwide Funds plc - Global Bond Fund Callfree: Private Clients 0800 414161 UK Gilt Gross £ 2.02 - 0.00 1.93 Property £ 5.75 6.12 0.04 4.17
Australia A GBP Inc £ 66.72 - 1.12 2.04 CF Richmond Core X 176.01 - 1.84 0.00
EUR Accumulating Class € 12.10 - -0.01 0.00 Broker Dealings: 0800 414 181 Corp Pens Protector 355.71 355.71 2.47 -
Arisaig Global Emerging Markets Consumer UCITS STG £ 11.07 - -0.03 0.00 UK Long Corp Bond £ 1.37 - 0.01 4.41
Baring China Bond Fund $ 10.01 - 0.01 0.00 CF Seneca Diversified Growth A ACC 215.61 - 0.51 1.44 Authorised Inv Funds
EUR Accumulating Class (H) € 9.23 - 0.00 0.00 Corp Pens UK Index Tracker £ 1.91 1.91 0.00 -
Arisaig Latin America Consumer Fund $ 21.36 - 0.06 0.00 Unit Trust UK Long Corp Bond - Gross £ 2.47 - 0.01 4.25 Hermes UK Residential Real Estate (UK)
Baring Emerging Markets Corporate Debt Fund $ 9.37 - -0.02 0.00 CF Seneca Diversified Growth B ACC 127.55 - 0.30 2.47 Guardian Linked Life Assurance Ltd
EUR Distributing Class € 11.61 - 0.00 3.21 Cash Accum Units 186.40 186.40 0.00 0.00 Property & Other UK Unit Trusts
UK Long Corporate Bond Fund - Gross Income £ 10.98 - 0.03 4.39
Baring European Opportunities Fund Class A EUR Acc € 14.04 - 0.09 0.00 CF Seneca Diversified Growth N ACC 126.30 - 0.30 2.14 Managed Acc £ 17.81 18.75 0.03 -
EUR Distributing Class (H) € 8.84 - -0.01 3.36 Cash Fund £ 1.00 1.00 0.00 0.14 VISTA UK Residential Real Estate £ 1.02 1.06 0.03 -
Retail Share Classes
Baring Global Mining Fund - Class A GBP Inc £ 3.60 - 0.09 0.60 CF Seneca Diversified Income A INC 87.73 - 0.17 5.13 Equity Acc £ 32.32 34.03 0.12 -
GBP Distributing Class £ 9.88 - -0.01 3.33 Gross Accum Cash £ 1.28 1.28 0.00 0.00 Emerging Markets - retail £ 1.24 - 0.02 0.07
Dynamic Emerging Markets A GBP Acc F £ 8.77 - 0.06 0.00 CF Seneca Diversified Income B INC 104.07 - 0.20 5.16 Fixed Interest Acc £ 16.99 17.89 0.08 -
GBP Distributing Class (H) £ 8.92 - 0.00 3.33 MoneyBuilder Cash ISA £ 1.00 1.00 0.00 0.14 Europe Long Term Growth £ 1.54 - 0.00 1.84 Impax Asset Management (IRL)
Eastern Europe A GBP Inc £ 43.46 - 0.51 1.78 CF Seneca Diversified Income N INC 103.07 - 0.20 5.16 {*}CAR - Net income reinvested International Acc £ 13.08 13.77 -0.02 - Norfolk House, 31 St James's Square, London, SW1Y 4JR
USD Accumulating Class $ 9.30 - 0.00 0.00 MoneyBuilder Global £ 2.61 2.61 0.01 0.20
Investment Adviser - DSM Capital Partners FCA Recognised
Emerging Mkt Debt LC A GBP Hedged Inc £ 7.30 - 0.03 6.50 International S-NA Acc £ 6.72 7.07 -0.01 -
Dodge & Cox Worldwide Funds plc-Global Stock Fund OEIC Funds
The Westchester X $ 28.00 - 0.57 0.00 Env Mkts (Ire) Stl A £ 2.20 - 0.02 0.00
Artemis Fund Managers Ltd (1200)F (UK) Emerging Opportunities A GBP Inc H £ 18.33 - 0.19 0.00 USD Accumulating Share Class $ 16.19 - 0.19 0.00 American £ 27.30 - 0.38 0.00 FIL Fund Management (LUX) International S-PA Acc £ 4.06 4.27 0.00 -
The Westchester Class 1 GBP Acc £ 19.87 - 0.33 0.00 Env Mkts (Ire) Euro A € 2.15 - 0.02 0.00
57 St. James's Street, London SW1A 1LD 0800 092 2051 Glb Emerging Markets A GBP Inc H £ 18.94 - 0.15 0.00 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
GBP Accumulating Share Class £ 17.49 - 0.19 0.00 American Special Sits £ 11.61 - 0.14 0.00 International S-EU Acc £ 3.27 3.45 -0.01 -
Authorised Inv Funds Phone: 800 22 089, 800 22 088 Env Mkts (Ire) USD A $ 1.75 - 0.02 0.00
The Westchester Class 2 GBP Acc £ 19.92 - 0.34 0.00
Glb Resources A GBP Inc H £ 10.83 - 0.15 0.37 GBP Distributing Share class £ 12.75 - 0.13 0.83 Asia Pacific Ops W-Acc £ 1.07 - 0.01 0.42 Regulated Managed S-PR Acc £ 6.77 7.12 0.02 -
Artemis Capital R ACC 1281.16 1353.70 10.03 1.25
Investment Adviser - Morant Wright Management Limited
High Yield Bond A GBP Hedged Inc H £ 6.25 - 0.00 7.01 EUR Accumulating Share Class € 22.83 - 0.26 0.00 China Consumer A-GBP £ 14.51 - -0.06 0.00 Fixed Interest S-IL Acc £ 6.42 6.76 0.03 -
Artemis European Growth R Acc 241.60 255.07 2.72 1.21 CF Morant Wright Japan A X 277.48 - 2.62 0.00 Fidelity Asian Dividend Fund A-Accumulation £ 1.08 - 0.01 1.42
Dodge & Cox Worldwide Funds plc-International Stock Fund China Focus A-GBP £ 4.25 - 0.00 0.71 INDIA VALUE INVESTMENTS LIMITED (INVIL)
Hong Kong China A GBP Inc £ 587.55 - 5.85 0.60 Fidelity Asian Dividend Fund A-Income £ 1.02 - 0.01 3.50 Deposit Accum £ 4.44 4.67 0.00 -
Artemis European Opps R Acc 74.78 78.91 0.81 0.82 CF Morant Wright Japan A Inc X 273.38 - 2.59 0.00 www.invil.mu
USD Accumulating Share Class $ 13.96 - 0.12 0.00 Global Financial Services A-GBP £ 0.44 - 0.00 0.11 Guardian Pensions Management Ltd Other International Funds
India Fund - Class A GBP Inc £ 13.75 - 0.18 0.00 China Consumer £ 1.48 - 0.02 0.08
Artemis Global Emg Mkts I GBP Acc 81.68 - 0.66 - CF Morant Wright Japan B X 295.19 - 2.80 0.50
EUR Accumulating Share Class € 15.43 - 0.13 0.00 Global Health Care A-GBP £ 0.55 - 0.00 0.00 Pens. Managed Acc. £ 23.11 24.32 0.02 - NAV £ 7.57 - 0.05 0.00
Latin America A USD Inc H $ 27.53 - 0.39 0.22 Emerging Asia £ 1.16 - 0.01 0.14
Artemis Global Emg Mkts I GBP Dist 81.69 - 0.66 - CF Morant Wright Japan B Inc X 278.36 - 2.64 0.53
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
MENA A GBP Inc F * £ 12.00 - 0.04 0.65 Global Industrials A-GBP £ 0.64 - 0.00 0.00 Pens. Equity Acc. £ 34.14 35.94 0.03 -
Artemis Global Energy R Acc 22.66 24.02 0.28 0.00 CF Morant Wright Nippon Yield ACC A X 283.24 - 2.14 2.07 Emerg Eur, Mid East & Africa H £ 1.38 - 0.01 0.95
USD Accumulating Share Class $ 18.39 - 0.27 0.00
Enhanced Income - Acc £ 1.92 - 0.02 6.53
Global Inflation-Linked Bd A-GBP-Hdg £ 1.16 - 0.00 0.56 Intrinsic Value Investors (IVI) LLP (IRL)
Artemis Global Growth R Acc 180.73 190.67 1.93 0.82 CF Morant Wright Nippon Yield ACC B X 293.67 - 2.23 2.06 GBP Accumulating Share Class £ 18.78 - 0.25 0.00 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Artemis Global Income R Acc 95.23 100.61 0.91 4.19 Baring International Fd Mgrs (Ireland) (IRL) Enhanced Income - Inc £ 1.24 - 0.02 7.27
Global Real Asset Securities £ 1.38 - 0.00 0.00 HPB Assurance Ltd FCA Recognised
CF Morant Wright Nippon Yield Fund A Inc X 246.22 - 1.87 2.10 GBP Distributing Share Class £ 11.96 - 0.16 0.58
Regulated Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
Global Technology A-GBP £ 0.26 - 0.00 0.00 IVI European Fund EUR € 18.17 - -0.02 0.00
Artemis Global Income R Inc 76.68 81.02 0.73 4.36 CF Morant Wright Nippon Yield Fund B Inc X 255.36 - 1.94 2.09 European - Inc £ 1.41 - 0.01 0.78 International Insurances
China A-Share A GBP Inc £ 5.70 - 0.14 0.00 EUR Accumulating Share Class € 22.39 - 0.32 0.00
Global Telecomms A-GBP £ 0.28 - 0.00 1.18 Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00 IVI European Fund GBP £ 17.25 - -0.02 1.02
Artemis Global select R Acc 72.16 76.14 0.82 0.00 European £ 16.08 - 0.17 1.17
India Focus A-GBP £ 4.21 - -0.03 0.00 Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00
Artemis High Income R Inc 77.72 82.77 0.23 5.84 European Opportunities £ 3.79 - 0.04 0.24
Cavendish Asset Management Limited (1200)F (UK)
Barings (Luxembourg) (LUX) Latin America A-GBP £ 1.36 - 0.00 0.65
Artemis Income R Inc 204.81 217.05 2.38 4.36 Chelsea House, Westgate, London W5 1DR Extra Income £ 0.26 - 0.00 3.29
FCA Recognised
IFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502
Artemis Income R Acc 349.27 370.14 4.06 4.24 Russia A GBP Inc F £ 26.60 - 0.37 0.00 Authorised Inv Funds
Extra Income - Gross £ 0.26 - 0.00 3.28 Hamon Investment Group
Findlay Park Funds Plc (IRL) Other International Funds
Artemis Monthly Dist R Inc 62.36 66.20 0.24 4.79 Cavendish Opportunities Fund B Class 1053.00 - 3.00 1.40 Global Dividend - Acc £ 1.59 - 0.02 3.14
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Asian Market Leaders - USD $ 24.84 - 0.37 0.00
Artemis Pan-Euro Abs Ret GBP 112.46 - 0.34 - Cavendish Opportunities Fund A Class 1048.00 - 3.00 0.61 Global Dividend - Inc £ 1.42 - 0.02 3.33
Barmac Asset Management Ltd (UK) FCA Recognised
Dragon Capital Group Asian Market Leaders - GBP £ 12.71 - 0.14 0.00
40 Dukes Place, London, EC3A 7NH Cavendish Opportunities Fund C Acc 1096.00xd - 3.00 1.20 Global Focus £ 13.34 - 0.18 0.00 American Fund USD Class $ 82.50 - 0.96 0.00
Artemis Strategic Assets R Acc 73.67 78.01 0.35 0.00
Authorised Corporate Director - Capita Financial Managers c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Greater China - USD $ 10.81 - 0.13 0.00
Artemis Strategic Bond R M Acc 83.73 88.89 0.08 4.12 Order Desk and Enquiries: 0345 922 0044 Cavendish Worldwide Fund B Class 298.70 - 3.80 0.82 Fund information, dealing and administration: funds@dragoncapital.com Global High Yield Fund - A Gross Acc £ 11.99 - 0.01 4.86 American Fund GBP Hedged £ 44.96 - 0.52 0.00
Other International Funds Greater China - GBP £ 4.47 - 0.04 0.00
Authorised Inv Funds
Artemis Strategic Bond R M Inc 53.99 57.32 0.05 4.19 Cavendish Worldwide Fund A Class 298.30 - 3.80 0.07 Global High Yield Fund - A Gross Inc £ 9.96 - 0.00 5.51 American Fund GBP Unhedged £ 54.03 - 0.45 -
The Castleton Growth Fund Ret Acc 2 112.58 - 0.15 0.00 Vietnam Enterprise Inv. (VEIL) NAV $ 3.73 - -0.05 0.00 Selected Asian P'folio $ 45.16 45.17 -0.51 0.00
Global High Yield Fund - A Net Acc £ 11.55 - 0.01 4.92 Latin American Fund USD Class $ 12.04 - 0.10 0.00
 26
Fund Bid Offer +/- Yield
Invesco Fund Managers Ltd (UK)
Perptual Park, Henley-On-Thames, Oxon, RG9 1HH
Dealing: 0800 085 8571
Investor Services: 0800 085 8677
www.invescoperpetual.co.uk
Authorised Inv Funds
INVESCO PERPETUAL Funds
Asian Acc ♦ F 425.73 - 7.16 0.91
Asian Inc ♦ F 382.37 - 6.42 0.92
Asian Equity Income Acc ♦ F 56.02 - 0.81 4.62
Asian Equity Income Inc ♦ F 47.73 - 0.69 4.75
Balanced Risk 6 Acc 51.70 - 0.21 0.00
Balanced Risk 8 Acc 52.93 - 0.29 0.00
Balanced Risk 10 Acc 54.08 - 0.37 0.12
set Management
Childrens Acc ♦ F 396.42 - 4.95 1.79
Corporate Bd Acc (Gross) ♦ F 206.72 - 0.19 3.61
Corporate Bd Inc (Gross) ♦ F 87.84 - 0.08 3.71
Corporate Bond Acc ♦ F 183.99 - 0.17 3.64
Corporate Bond Inc ♦ F 87.76 - 0.08 3.72
Distribution Acc ♦ F 109.47 - 0.48 4.39
Distribution Acc (Gross) ♦ F 125.34 - 0.56 4.36
Distribution Inc ♦ F 63.78 - 0.28 4.47
Distribution Inc (Gross) ♦ F 63.80 - 0.28 4.47
Emerging European Acc ♦ F 35.71 - 0.38 2.93
Emerging European Inc ♦ F 32.55 - 0.34 3.01
European Equity Acc ♦ F 840.81 - 6.62 2.26
European Equity Inc ♦ F 701.57 - 5.53 2.31
European Equity Income Acc ♦ F 73.21 - 0.72 3.50
European Equity Income Inc ♦ F 55.66 - 0.55 3.58
European High Income Acc ♦ F 80.20 - 0.32 3.50
European High Income Inc ♦ F 58.26 - 0.23 3.56
European Opportunities Inc ♦ F 82.75 - 0.84 0.16
European Opportunities Acc ♦ F 85.59 - 0.86 0.16
European Smlr Cos Acc ♦ F 185.43 - 0.64 0.23
Global Bd Acc (Gross) ♦ F 129.74 - 0.03 1.17
Global Bd Inc (Gross) ♦ F 79.89 - 0.02 1.18
Global Bond Acc ♦ F 121.91 - 0.03 1.17
Global Bond Inc ♦ F 79.85 - 0.02 1.18
Glbl Distribution Acc 53.60 - 0.23 4.76
Glbl Distribution Acc (Gross) 54.31 - 0.24 4.76
Glbl Distribution Inc 50.94 - 0.23 4.77
Glbl Distribution Inc (Gross) 50.95 - 0.22 4.77
Global Emerging Markets Acc ♦ F 237.75 - 2.28 0.99
Global Emerging Markets Inc ♦ F 214.39 - 2.05 1.00
Global Equity (acc) ♦ F 475.27 - 5.87 0.64
Global Equity (inc) ♦ F 430.86 - 5.32 0.64
Global Equity Income Acc ♦ F 121.06 - 1.36 3.63
Global Equity Income Inc ♦ F 98.32 - 1.10 3.73
Gbl Financial Capital Acc 88.66 - 0.23 4.32
Gbl Financial Capital Inc 74.61 - 0.20 4.45
Gbl Financial Cap Acc Gross 92.77 - 0.25 4.81
Gbl Financial Cap Inc Gross 74.76 - 0.20 4.99
Global Opportunities Acc ♦ F 94.05 - 1.15 0.47
Global Smaller Cos Acc ♦ F 1673.64 - 15.29 0.21
Global Smaller Cos Inc ♦ F 1598.12 - 14.60 0.21
Global Targeted Rets Acc 56.52 - 0.04 0.29
High Income Acc ♦ F 832.76 - 5.86 3.33
High Income Inc ♦ F 459.38 - 3.24 3.41
High Yield Fund Acc 107.37 - -0.18 4.91
High Yield Fund Acc (Gross) 125.31 - -0.22 4.88
High Yield Fund Inc 42.48 - -0.07 5.04
High Yield Fund Inc (Gross) 42.53 - -0.07 5.03
Hong Kong & China Acc ♦ F 472.28 - 7.75 0.74
Income & Growth Acc ♦ F 956.30 - 11.75 4.08
Income & Growth Inc ♦ F 414.89 - 5.10 4.20
Income Acc ♦ F 3206.90 - 20.72 3.17
Income Inc ♦ F 1783.50 - 11.53 3.24
Japan Acc ♦ F 314.88 - 2.78 0.30
Japanese Smlr Cos Acc ♦ F 63.83 - 0.19 0.00
Latin America Acc ♦ F 103.18 - 1.06 1.17
Latin America Inc ♦ F 85.89 - 0.88 1.19
Managed Growth Acc ♦ F 161.05 - 1.64 0.71
Managed Growth Inc ♦ F 134.08 - 1.37 0.72
Managed Income Acc ♦ F 160.16 - 1.23 2.99
Managed Income Inc ♦ F 98.69 - 0.76 3.05
Money Acc ♦ F 90.17 - 0.00 0.21
Money Acc (Gross) ♦ F 95.29 - -0.01 0.21
Monthly Income Plus Acc ♦ F 297.28 - 0.37 4.81
Monthly Income Plus Acc (Gross) ♦ F 349.63 - 0.46 4.78
Monthly Income Plus Inc ♦ F 109.56 - 0.14 4.91
Monthly Income Plus Inc (Gross) ♦ F 109.75 - 0.15 4.91
Pacific Acc ♦ F 971.15 - 14.62 0.38
Pacific Inc ♦ F 891.98 - 13.42 0.38
Tactical Bond Acc ♦ F 68.97 - -0.08 0.96
Tactical Bond Inc ♦ F 59.80 - -0.06 0.97
Tactical Bond Acc (Gross) ♦ F 71.55 - -0.08 0.96
Tactical Bond Inc (Gross) ♦ F 59.85 - -0.06 0.97
UK Focus Acc F 199.75 - 2.69 1.82
UK Focus Inc F 166.35 - 2.24 1.85
UK Growth Acc ♦ F 542.77 - 6.71 1.87
UK Growth Inc ♦ F 344.36 - 4.26 1.90
UK Smaller Cos Equity Acc ♦ F 863.82 - 3.33 0.78
UK Smaller Cos Equity Inc ♦ F 661.49 - 2.54 0.79
UK Strategic Income Acc ♦ F 186.35 - 1.12 3.54
UK Strategic Income Inc ♦ F 137.29 - 0.82 3.63
US Equity Acc ♦ F 548.12 - 6.86 0.00
Invesco Perpetual Funds (No Trail)
Asian (No Trail) Acc ♦ F 178.42 - 3.00 1.47
Asian (No Trail) Inc ♦ F 162.24 - 2.73 1.48
Asian Equity Income (No Trail) Acc ♦ F 114.69 - 1.65 4.61
Asian Equity Income (No Trail) Inc 97.73 - 1.41 4.74
Balanced Risk 6 No Trail Acc 105.34 - 0.45 0.16
Balanced Risk 8 No Trail Acc 107.80 - 0.59 0.43
Balanced Risk 10 No Trail Acc 110.16 - 0.76 0.58
Corporate Bond (No Trail) Acc ♦ F 163.74 - 0.15 3.88
Corporate Bond (No Trail) Inc ♦ F 115.99 - 0.10 3.97
Distribution (No Trail) Acc ♦ F 167.96 - 0.74 4.37
Distribution (No Trail) Inc ♦ F 111.40 - 0.49 4.46
Emerging European (No Trail) Acc ♦ F 74.29 - 0.78 3.51
Emerging European (No Trail) Inc ♦ F 65.66 - 0.70 3.63
European Equity (No Trail) Acc ♦ F 148.47 - 1.17 2.77
European Equity (No Trail) Inc ♦ F 123.05 - 0.97 2.84
European Equity Income (No Trail) Acc ♦ F 150.84 - 1.49 3.48
European Equity Income (No Trail) Inc ♦ F 114.71 - 1.13 3.57
European High Income (No Trail) Acc ♦ F 165.24 - 0.65 3.49
European High Income (No Trail) Inc ♦ F 120.03 - 0.47 3.55
European Opportunities (No Trail) Acc ♦ F 179.21 - 1.81 0.68
European Opportunities (No Trail) Inc ♦ F 167.54 - 1.69 0.68
European Smaller Companies (No Trail) Acc ♦ F 227.75 - 0.79 0.75
Global Balanced Index (No Trail) Acc ♦ F 158.99 - 1.78 2.06
Global Bond (No Trail) Acc ♦ F 137.00 - 0.03 1.42
Global Bond (No Trail) Inc ♦ F 123.86 - 0.03 1.43
Glbl Distribution Acc (No Trail) 108.00 - 0.47 3.88
Glbl Distribution Inc (No Trail) 102.64 - 0.45 3.96
Asset Management
Gbl Emerging Markets (No Trail) Acc ♦ F 155.84 - 1.50 1.59
Gbl Emerging Markets (No Trail) Inc ♦ F 144.80 - 1.38 1.62
Global Equity (No Trail) acc ♦ F 209.81 - 2.59 1.19
Global Equity (No Trail) inc ♦ F 194.13 - 2.40 1.21
Global Equity Income (No Trail ) Acc ♦ F 250.44 - 2.81 3.62
Global Equity Income (No Trail) Inc ♦ F 203.40 - 2.28 3.73
Global ex UK Core Equity Index ( No Trail) Acc ♦ F 173.22 - 1.74 1.59
Global ex UK Enhanced Index ( No Trail) Acc ♦ F 201.75 - 2.16 2.08
Gbl Fin Cap No Trail Acc 180.70 - 0.48 4.30
Gbl Fin Cap No Trail Inc 152.08 - 0.41 4.43
Global Opportunities (No Trail) Acc ♦ F 242.03 - 2.95 1.03
Global Smaller Companies (No Trail) Acc ♦ F 244.53 - 2.24 0.76
Fund Bid Offer +/- Yield
Global Smaller Companies (No Trail) Inc ♦ F 233.66 - 2.14 0.76
Global Targeted Rets (No Trail) Acc 114.22 - 0.10 0.83
High Income (No Trail) Acc ♦ F 178.08 - 1.25 3.32
High Income (No Trail) Inc ♦ F 130.93 - 0.92 3.40
High Yield Fund (No Trail) Acc 222.52 - -0.38 4.90
High Yield Fund (No Trail) Inc 164.00 - -0.28 5.02
Hong Kong & China (No Trail) Acc ♦ F 187.32 - 3.08 1.24
Income & Growth (No Trail) Acc ♦ F 225.15 - 2.77 4.06
Income & Growth (No Trail) Inc ♦ F 178.24 - 2.20 4.18
Income (No Trail) Acc ♦ F 176.24 - 1.15 3.16
Income (No Trail) Inc ♦ F 129.03 - 0.84 3.23
Japan (No Trail) Acc ♦ F 149.63 - 1.32 0.77
Japanese Smaller Companies (No Trail) Acc ♦ F 162.62 - 0.50 0.00
Latin American (No Trail) Acc ♦ F 99.78 - 1.03 1.91
Latin American (No Trail) Inc ♦ F 89.61 - 0.92 1.94
Managed Growth (No Trail) Acc ♦ F 195.29 - 2.00 1.24
Managed Growth (No Trail) Inc ♦ F 179.59 - 1.83 1.25
Managed Income (No Trail) Acc ♦ F 191.96 - 1.48 2.99
Managed Income (No Trail) Inc ♦ F
Asset Management 158.64 - 1.22 3.05
Monthly Income Plus (No Trail) Acc ♦ F 171.48 - 0.22 4.80
Monthly Income Plus (No Trail) Inc ♦ F 107.99 - 0.13 4.90
Pacific (No Trail) Acc ♦ F 180.17 - 2.71 0.87
Pacific (No Trail) Inc ♦ F 171.01 - 2.58 0.95
Tactical Bond (No Trail) Acc ♦ F 141.18 - -0.15 1.45
Tactical Bond (No Trail) Inc ♦ F 119.68 - -0.12 1.47
UK Focus (No Trail) Acc F 164.35 - 2.21 2.37
UK Focus (No Trail) Inc F 138.29 - 1.86 2.42
UK Enhanced Index (No Trail) Acc ♦ F 404.48 - 5.77 3.62
UK Enhanced Index (No Trail) Inc ♦ F 251.92 - 3.59 3.72
UK Growth (No Trail) Acc ♦ F 143.58 - 1.78 2.40
UK Growth (No Trail) Inc ♦ F 117.48 - 1.46 2.45
UK Smaller Companies Equity (No Trail) Acc ♦ F 281.26 - 1.09 1.27
UK Smaller Companies Equity (No Trail) Inc ♦ F 259.47 - 1.01 1.29
UK Strategic Income (No Trail) Acc ♦ F 740.28 - 4.45 3.53
UK Strategic Income (No Trail) Inc ♦ F 545.43 - 3.28 3.62
US Equity (No Trail) Acc ♦ F 228.27 - 2.87 0.11
Invesco (LUX)
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
FCA Recognised
Invesco Management SA
Invesco Active Multi-Sector Credit Fund A € 2.90 - 0.00 0.00
Invesco Asia Balanced A dist $ 14.18 - 0.13 3.66
Invesco Asia Consumer Demand Fund A income $ 12.56 - 0.23 0.24
Invesco Asia Infrastructure (A) $ 12.59 - 0.17 0.75
Invesco Asia Opportunities Equity A $ 102.48 - 2.12 0.00
Invesco Balanced Risk Allocation Fund A € 14.68 - 0.07 0.00
Invesco Emerging Europe Equity Fund A $ 8.38 - 0.12 0.00
Invesco Emerging Local Currencies Debt A Inc $ 6.93 - 0.03 6.87
Invesco Emerging Mkt Quant.Eq. A $ 9.29 - 0.14 0.00
Invesco Energy A $ 19.26 - 0.32 0.00
Invesco Euro Corporate Bond Fund (A) € 17.07 - 0.02 0.00
Invesco Euro Inflation Linked Bond A € 15.71 - 0.01 0.00
Invesco Euro Reserve A € 322.73 - 0.00 0.00
Invesco Euro Bond A € 7.17 - 0.01 0.00
Invesco European Growth Equity A € 25.59 - 0.23 0.00
Invesco Global Absolute Return Fund A Class € 11.77 - 0.01 0.00
Invesco Global Bond A Inc $ 5.51 - 0.01 0.75
Invesco Global Conservative Fund 90 (EUR) A € 11.95 - 0.03 0.00
Invesco Global Equity Income Fund A $ 60.29 - 0.86 0.00
Invesco Global Inc Real Estate Sec A dist $ 9.14 - 0.07 2.19
Invesco Global Inv Grd Corp Bond A Dist $ 11.79 - 0.01 3.04
Invesco Global Leisure A $ 37.18 - 0.63 0.00
Invesco Global Smaller Comp Eq Fd A $ 57.48 - 0.76 0.00
Invesco Global Structured Equity A $ 47.40 - 0.49 0.73
Invesco Global Total Ret.(EUR) Bond Fund A € 13.24 - 0.00 0.00
Invesco Gold & Precious Metals A $ 3.51 - 0.11 0.00
Invesco Greater China Equity A $ 45.27 - 1.18 0.00
Invesco India Equity A $ 50.96 - 0.97 0.00
Invesco Japanese Equity Adv Fd A ¥ 3943.00 - 42.00 0.00
Invesco Japanese Value Eq Fd A ¥ 1314.00 - 12.00 0.00
Invesco Latin American Equity A $ 6.02 - 0.08 0.00
Invesco Nippon Small/Mid Cap Equity A ¥ 1006.00 - 1.00 0.00
Invesco Pan European Equity A EUR Cap NAV € 20.23 - 0.22 0.00
Invesco Pan European High Income Fd A € 14.09 - 0.04 2.39
Invesco Pan European Small Cap Equity A € 23.17 - 0.05 0.00
Invesco Pan European Structured Equity A € 18.03 - 0.21 0.00
Invesco UK Eqty Income A £ 32.07 - 0.21 0.00
Invesco UK Investment Grade Bond A £ 0.98 - 0.00 2.94
Invesco US Structured Equity A $ 21.06 - 0.28 0.00
Invesco US Value Eq Fd A $ 32.00 - 0.47 0.00
Invesco USD Reserve A $ 87.02 - 0.00 0.00
Invesco Global Asset Management Ltd (IRL)
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
FCA Recognised
Invesco Stlg Bd A QD F £ 2.61 - 0.01 3.32
Invesco Asian Equity A $ 6.27 - 0.10 0.51
Invesco ASEAN Equity A $ 88.64 - 0.67 0.44
Invesco Bond A $ 26.81 - 0.05 2.20
Invesco Continental Eurp Small Cap Eqty A $ 196.29 - 2.41 0.00
Invesco Emerging Markets Equity A $ 36.21 - 0.48 0.00
Invesco Emerging Markets Bond A $ 21.17 - 0.08 4.76
Invesco Continental European Equity A € 9.18 - 0.10 0.19
Invesco Gilt A £ 14.89 - 0.00 1.42
Invesco Global Small Cap Equity A NAV $ 121.15 - 1.53 0.00
Invesco Global High Income A NAV $ 12.42 - 0.02 5.43
Invesco Gbl R/Est Secs A GBP F F £ 7.69 - 0.05 0.89
Invesco Global Health Care A $ 130.34 - 2.71 0.00
Invesco Global Select Equity A $ 13.41 - 0.21 0.00
Invesco Jap Eqty Core A $ 1.85 - 0.03 0.00
Invesco Japanese Equity A $ 19.19 - 0.21 0.00
Invesco Korean Equity A $ 31.72 - 0.77 0.00
Invesco PRC Equity A $ 52.76 - 0.85 0.00
Invesco Pacific Equity A $ 47.77 - 0.88 0.18
Invesco Global Technology A $ 16.36 - 0.33 0.00
Invesco UK Eqty A £ 8.02 - 0.10 1.37
Invest AD
Client services: +971 2 692 6101 clientservices@InvestAD.com
Other International Funds
Invest AD - Iraq Opportunity Fund $ 60.55 - -1.30 0.00
Invest AD - Emerging Africa Fund $ 912.25 - 5.32 0.00
Invest AD - GCC Focus Fund $ 1401.68 - 1.77 0.00
JPMorgan Asset Mgmt (1200)F (UK)
60 Victoria Embankment, London EC4Y 0JP
Brokerline: 0800 727 770, Clients: 0800 20 40 20
Authorised Inv Funds
JPM Retail OEIC (A class unless stated)
America Equity Acc 61.57 - -0.17 0.00
America Equity Inc 61.57 - -0.16 0.00
Asia Acc 116.00 - -0.40 0.33
Asia Inc 64.36 - -0.25 0.32
Cautious Managed Rt Acc 68.04xd - 0.01 0.38
Cautious Managed Rt Inc 59.84xd - 0.00 0.38
Diversified Real Ret Acc 50.36 - 0.05 1.07
Diversified Real Ret Inc 48.92 - 0.05 1.08
Emerging Mkts Acc 134.40 - -0.40 0.77
Emerging Mkts Inc 57.82
Asset Management
- -0.17 0.78
★ FINANCIAL TIMES
Fund Bid Offer +/- Yield
Emrg Eur Eq Acc 140.80 - 2.30 2.57
Emrg Eur Eq Inc 33.47 - 0.54 2.54
Emrg Mkts Inc Acc... C 47.41xd - -0.11 5.21
Emrg Mkts Inc Inc... C 41.36xd - -0.10 5.36
Europe Acc 1044.00 - 0.00 1.49
Europe Inc 60.13 - 0.06 1.49
Eur Dynamic exUK Acc 158.10 - -0.30 0.83
Eur Dynamic exUK £ hdg Acc 188.60 - -0.20 0.70
Eur Dynamic exUK Inc 72.58 - -0.15 0.82
Eur Smaller Cos Acc 483.70 - -2.30 0.00
Eur Smaller Cos Inc 62.91 - -0.30 0.00
Fusion Balanced Acc 54.78 - 0.20 0.47
Fusion Balanced Inc 55.08 - 0.19 0.47
Fusion Conservative Acc 54.21 - 0.15 0.65
Fusion Conservative Inc 54.15 - 0.15 0.67
Fusion Growth Acc 56.39 - 0.25 0.47
Fusion Growth Inc 56.39 - 0.25 0.47
Fusion Growth + Acc 58.68 - 0.31 0.47
Fusion Growth + Inc 58.68 - 0.30 0.47
Fusion Income Acc...C 53.75xd - 0.19 2.37
Fusion Income Inc...C 50.79xd - 0.18 2.41
Global Allocation Acc 53.77 - 0.06 0.65
Global Allocation Inc 53.42 - 0.06 0.66
Global Bond exUK Acc 250.80 - 0.20 0.73
Global Bond exUK Inc 197.20 - 0.10 0.73
Global Bond Opport. Acc 49.08xd - 0.11 2.87
Global Bond Opport. Inc 48.35xd - 0.11 2.92
Global Eq Income £ hdg Acc... C 68.61xd - -0.09 3.15
Global Eq Income £ hdg Inc ... C 49.11xd - -0.07 3.22
Global Eq Income Acc... C 70.93xd - -0.13 3.18
Global Eq Income Inc ... C 61.44xd - -0.12 3.24
Global Equity Acc 994.70 - -2.90 0.15
Global Equity Inc 73.93 - -0.21 0.14
Global Financials Acc 727.20 - -2.90 0.86
Global Financials Inc 41.36 - -0.16 0.87
Global High Yield Bd Mth Inc C 36.37xd - 0.18 6.81
Global High Yield Bd Acc C 96.22xd - 0.47 6.76
Global High Yield Bd Inc C 36.35xd - 0.18 6.85
Global Property Secs Acc 57.51 - 0.07 0.59
Global Property Secs Inc 49.63 - 0.05 0.58
Income Acc ... C 49.31xd - 0.13 6.53
Income Inc ... C 46.02xd - 0.11 6.56
Japan Acc 293.80 - -0.60 0.00
Japan Inc 70.73 - -0.15 0.00
Multi-Asset Inc Mth Inc ... C 63.91xd - 0.12 3.68
Multi-Asset Inc Acc... C 85.13xd - 0.15 3.59
Multi-Asset Inc Inc... C 63.91xd - 0.11 3.69
Multi-Asset Macro Acc 65.03 - -0.09 0.00
Multi-Asset Macro Inc 65.04 - -0.09 0.00
Multi-Manager Growth Acc 715.80 - -1.80 0.47
Multi-Manager Growth Inc 668.10 - -1.60 0.47
Natural Resources Acc 321.90 - -3.10 0.13
Natural Resources Inc 22.80 - -0.21 0.13
Portfolio Acc 199.80 - 1.00 0.68
Sterling Corporate Bond Acc 82.18xd - 0.27 2.35
Sterling Corporate Bond Inc 51.37xd - 0.17 2.36
Strategic Bond Acc 68.54xd - 0.09 3.18
Strategic Bond Inc 56.89xd - 0.07 3.20
UK Active Index + E Acc 278.40 - 0.20 3.08
UK Active Index + E Inc 52.50 - 0.04 3.08
UK Dynamic Acc 161.30 - -0.40 1.46
UK Dynamic Inc 131.90 - -0.30 1.47
UK Eq & Bond Inc Acc ... C 140.40xd - 0.10 3.38
UK Eq & Bond Inc Inc ... C 81.68xd - 0.05 3.45
UK Higher Inc Acc ... C 904.80 - 0.10 4.14
UK Higher Inc Inc ... C 525.90 - 0.10 4.27
UK Managed Equity Acc 65.72xd - -0.01 2.15
UK Managed Equity Inc 55.01xd - -0.01 2.18
UK Smaller Cos Acc 383.70 - -2.20 0.00
UK Smaller Cos Inc 74.51 - -0.42 0.00
UK Strategic Eq Inc Acc ... C 150.50xd - 0.20 3.76
UK Strategic Eq Inc Inc ... C 97.30xd - 0.07 3.85
UK Strategic Gth Acc 112.30 - -0.30 1.17
UK Strategic Gth Inc 104.80 - -0.30 1.19
US Acc 714.90 - -1.50 0.00
US Inc 98.94 - -0.21 0.00
US Equity Income Acc ... C 120.50xd - -0.10 2.15
US Equity Income £ hdg Inc ... C 98.98xd - -0.07 2.23
US Equity Income Inc ... C 102.20xd - -0.20 2.18
US Select Acc 111.60 - -0.30 0.00
US Select Inc 110.20 - -0.30 0.00
US Smaller Cos Acc 369.90 - -0.70 0.00
US Smaller Cos Inc 96.94 - -0.18 0.00
JPMorgan Charity Funds (UK)
60 Victoria Embankment, London EC4Y 0JP 020 7742 9175
Property & Other UK Unit Trusts
UK Equity Fund for Charities I...C £ 2.787234xd 2.798270 1.750804 3.55
Bond Fund for Charities £ 1.331165xd 1.337321 0.294735 3.59
GAM
funds@gam.com, www.jbfundnet.com
Regulated
JB BF ABS-EUR B € 104.76 - 0.00 0.00
JB BF Abs Ret Def-EUR B € 109.83 - -0.11 0.00
JB BF Abs Ret EM-USD B $ 114.84 - 0.02 0.00
JB BF Abs Ret-EUR B € 128.67 - -0.12 0.00
JB BF Abs Ret Pl-EUR B € 127.55 - -0.13 0.00
JB BF EM Corporate-USD B $ 107.73 - 0.07 0.00
JB BF EM Infl Link-USD B $ 82.17 - 0.26 0.00
JB BF EM Inv Grade-USD B $ 98.52 - 0.01 0.00
JB Emerging (EUR)-EUR B € 333.75 - 0.60 0.00
JB Emerging (USD)-USD B $ 407.82 - 0.67 0.00
JB BF Local EM-USD B $ 250.74 - 0.35 0.00
JB BF Total Ret-EUR B € 97.64 - 0.04 0.00
JB EF Abs Ret Eur-EUR B € 120.16 - -0.11 0.00
JB EF Euro Value-EUR B € 181.96 - 1.24 0.00
JB EF Japan-JPY B ¥ 18180.00 - 196.00 0.00
JB EF Luxury B-EUR B € 225.81 - 0.85 0.00
JB Ms EF Special Val. EUR/A € 140.38 - 1.16 0.77
JB Strategy Balanced-CHF/B SFr 151.71 - 0.72 0.00
JB Strategy Balanced-EUR € 157.08 - 0.53 0.00
JB Strategy Balanced-USD/B $ 130.23 - 0.55 0.00
JB Strategy Growth-CHF/B SFr 93.78 - 0.64 0.00
JB Strategy Growth-EUR € 118.07 - 0.59 0.00
JB Strategy Inc-CHF/B SFr 120.37 - 0.34 0.00
JB Strategy Inc-EUR/B € 161.20 - 0.29 0.00
JB Strategy Inc-USD/B $ 146.57 - 0.34 0.00
Kames Capital ICVC (UK)
Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA
Authorised Funds
Asset Management
0800 45 44 22 www.kamescapital.com
Diversified Income B Acc 112.67 - 0.42 0.00
Diversified Income B Inc 103.11 - 0.38 0.00
Diversified Growth A Acc 132.53 - 0.83 2.72
Ethical Cautious Managed B Acc £ 1.22 - 0.00 2.23
Ethical Cautious Managed B Inc £ 1.16 - 0.01 2.26
Ethical Corporate Bond B Acc £ 1.69 - 0.00 3.75
Ethical Corporate Bond B Inc £ 0.99 - 0.01 3.82
Ethical Equity B Acc £ 2.01 - 0.01 2.15
High Yield Bond B Acc £ 2.43 - 0.00 5.26
High Yield Bond B Inc £ 0.98 - 0.00 5.38
Friday 20 November 2015
MANAGED FUNDS SERVICE
Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield
Investment Grade Bond B Acc 158.70 - 0.32 1.50 Wld Gold Expertise PA € 6.80 - 0.16 0.00 European Res.A1 € 33.72 - 0.11 0.00 Morant Wright Sakura Fund Euro Acc Hedged € 14.50 - 0.15 0.00 Wealthy Nat Bd USD Ord Inc $ 110.94 - 0.09 3.31
Investment Grade Bond B Inc £ 1.16 - 0.01 3.64 Wld Gold Expertise PA $ 9.06 - 0.21 0.00 European Smaller Companies A1 € 52.80 - 0.16 0.00 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1480.23 - 15.03 0.00 New Capital Alternative Strategies
LO Selection All Weather Fd USD Cls $ 117.51 - -1.87 0.00
Sterling Corporate Bond B Acc £ 0.74 - 0.01 3.46 European Value A1 € 37.21 - 0.09 0.00 Morant Wright Sakura Fund Dollar Acc Hedged $ 14.45 - 0.15 0.00
Balanced (CHF) PA F SFr 109.48 - 0.37 0.00 All Weather Fd EUR Cls € 105.60 - -1.73 0.00
Sterling Corporate Bond B Inc £ 0.31 - 0.00 3.53 Global Conc.A1 $ 37.43 - 0.38 0.00 Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 14.38 - 0.15 0.00
Balanced (EUR) PA F € 127.92 - 0.23 0.00 All Weather Fd GBP Cls £ 113.71 - -2.13 0.00
Strategic Bond B Acc £ 1.12 - 0.00 2.72 Global Credit Fund $ 10.25 - 0.00 0.00
Conservative (CHF) PA F SFr 104.67 - 0.19 0.00 Tactical Opps USD Cls $ 141.99 - -8.87 0.00
Strategic Bond B Inc £ 1.17 - 0.00 2.76 Global Energy Fund A1 $ 12.88 - 0.17 0.00
Conservative (EUR) PA F € 115.30 - 0.13 0.00 Tactical Opps EUR Cls € 118.97 - -7.43 0.00
UK Equity B Acc £ 2.59 - 0.03 2.41 Global Equity A1 $ 45.90 - 0.43 0.00
Global Allocation (GBP) PA F £ 9.99 - 0.01 0.00 Tactical Opps GBP Cls £ 133.63 - -8.30 0.00
UK Equity Absolute Return B Acc £ 1.23 - 0.00 0.00 Global Equity A1 € 27.25 - 0.16 0.00
Growth (CHF) PA F SFr 115.34 - 0.53 0.00
UK Equity Income B Acc £ 2.16 - 0.03 4.76 Global High Yield Fund $ 24.48 - 0.00 0.00
Growth (EUR) PA F € 139.57 - 0.32 0.00
UK Equity Income B Inc £ 1.67 - 0.02 4.89 Global High Yield Fund € 16.70 - -0.05 0.00
Morgan Stanley Investment Funds (LUX)
Vantage 1500 (EUR) MA € 10.21 - 0.00 0.00
UK Opportunities B Acc £ 1.75 - 0.02 2.34 Global Multi-Asset A1 $ 15.24 - 0.06 0.00 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
Vantage 3000 (EUR) MA € 10.35 - 0.01 0.00 www.morganstanleyinvestmentfunds.com
UK Smaller Companies B Acc £ 2.89 - 0.01 1.47 Global Res.A1 $ 25.95 - 0.34 0.00
PrivilEdge FCA Recognised
Global Total Return A1 € 18.25 - 0.06 0.00 US Advantage A F $ 59.50 - 0.91 0.00
Inc.Pt.RMB Dt.CNH PA CNH 102.95 - -0.03 0.00
Kames Capital Investment Portfolios ICVC (UK) Inflation-Adjusted Bond A1 $ 13.81 - 0.02 0.00 Asian Equity A F $ 41.36 - 0.48 0.00 Northwest Investment Management (HK) Ltd
Inc.Pt.RMB Dt.SH CHF PA SFr 9.85 - -0.01 0.00
Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Japan Equity A1 $ 10.48 - 0.06 0.00 Asian Property A F $ 17.70 - 0.13 0.00
0800 45 44 22 www.kamescapital.com Inc.Pt.RMB Dt.SH EUR PA € 9.93 - -0.02 0.00 Other International Funds
Authorised Funds Latin American Equity Fd A1 $ 12.07 - 0.16 0.00 Asian Property AX F £ 10.68 - 0.03 0.52 Northwest $ class $ 2382.42 - 14.15 0.00
Inc.Pt.RMB Dt.USD PA $ 10.01 - -0.01 0.00
Property Income B Acc 118.68 - 0.10 4.53 Limited Maturity A1 $ 14.01 - -0.01 0.00
Jenn. US Eq.Opp. USD PA $ 9.78 - 0.15 0.00 Diversified Alpha Plus A F € 29.89 - 0.05 0.00 Northwest Warrant $ class $ 1969.35 - -444.40 0.00
Property Income B Inc 110.46 - 0.10 4.67 Prudent Wealth Fd A1 Asset Management
$ 14.69 - 0.04 0.00
Neubrg.Berman US Core PA $ 13.97 - 0.21 0.00 Emerg Europ, Mid-East & Africa Eq A F € 71.19 - 0.66 0.00
Asset Management Sands US Growth PA € 14.63 - 0.26 0.00
Research Bond A1 $ 16.51 - 0.00 0.00 Emerging Markets Debt A F $ 75.68 - 0.03 0.00
Kames Capital VCIC (IRL)
Sands US Growth PA $ 17.68 - 0.31 0.00
UK Equity A1 £ 8.03 - 0.05 0.00 Emerging Markets Domestic Debt AX F £ 10.29 - 0.04 5.41
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493
US Conc.Growth A1 $ 15.67 - 0.21 0.00 Emerging Markets Equity A F $ 33.69 - 0.39 0.00
FCA Recognised Will.Blair Gbl. Ldrs PA € 16.66 - 0.18 0.00
Absolute Return Bond B GBP Acc 1079.36 - 0.17 - US Government Bond A1 $ 17.02 - 0.00 0.00 Euro Bond A F € 15.79 - 0.04 0.00
Will.Blair Gbl. Ldrs PA $ 13.23 - 0.13 0.00
Eq Market Neutral B Acc 1010.40 - -0.42 - Value A1 $ 22.29 - 0.33 0.00 Euro Corporate Bond AX F £ 20.92 - 0.01 1.53
Oasis Crescent Management Company Ltd
Eq Market Neutral Plus B Acc 1009.34 - -0.49 - Euro Strategic Bond A F € 43.63 - 0.11 0.00
Lothbury Property Trust (UK) Other International Funds
High Yield Global Bond A GBP Inc 521.30 - -0.05 3.64 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900 MMIP Investment Management Limited (GSY) European Currencies High Yield Bd A F € 21.80 - 0.03 0.00 Oasis Crescent Equity Fund R 9.32 - 0.06 0.00
Property & Other UK Unit Trusts Regulated
High Yield Global Bond B GBP Inc 1082.67 - -0.09 4.14 European Equity Alpha A F € 44.85 - 0.39 0.00
Lothbury Property Trust GBP £ 1776.50 1904.58 11.63 3.24 Multi-Manager Investment Programmes PCC Limited
Investment Grade Global Bd A GBP Inc 554.22 - 0.19 2.36 European Property A F € 36.99 - 0.34 0.00
European Equity Fd Cl A Initial Ser € 2579.25 2589.39 212.70 0.00 Oasis Global Mgmt Co (Ireland) Ltd (IRL)
Kames Global Equity Income B GBP Acc 1173.20 - 7.85 - Regulated
Japanese Equity Fd Cl A Initial Ser ¥ 361904.00 363123.00 28252.00 0.00 Eurozone Equity Alpha A F € 12.02 - 0.14 0.00
Oasis Global Investment (Ireland) Plc
Kames Global Equity Income B GBP Inc 1118.32 - 7.48 - Global Bond A F $ 38.19 - 0.15 0.00
MMIP - US EQUITY CLASS A 01 June 07 Series $ 1135.99 1139.27 -48.31 0.00 Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.00 0.71
Strategic Global Bond A GBP Inc 1092.92 - 0.27 0.71 Global Brands A F $ 100.66 - 1.45 0.00
Pacific Basin Fd Cl A Initial Ser $ 2142.33 2154.57 139.28 0.00 Oasis Global Equity $ 27.04 - 0.20 0.22
Strategic Global Bond B GBP Inc 619.83 - 0.16 1.21 Global Convertible Bond A F $ 43.02 - 0.17 0.00
UK Equity Fd Cl A Series 01 £ 2356.72 2380.35 78.79 0.00 Oasis Crescent Global Investment Fund (Ireland) plc
Global Property A F $ 27.86 - 0.28 0.00 Oasis Crescent Global Equity Fund $ 27.55 - 0.20 0.00
Diversified Absolute Rtn Fd USD Cl AF2 $ 1591.09 - 14.69 0.00
Kleinwort Benson Bank (UK) M & G Securities (1200)F (UK) Diversified Absolute Return Stlg Cell AF2 £ 1611.67 - 15.03 0.00 Indian Equity A F $ 34.38 - 0.43 0.00 Oasis Crescent Variable Balanced Fund £ 10.30 - 0.00 0.58
PO Box 9039, Chelmsford, CM99 2XG
14 St. George Street, Mayfair, London W1S1FE OasisCresGl Income Class A $ 10.87 - 0.00 2.35
www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196 Latin American Equity A F $ 39.61 - 0.48 0.00
Dealing and enquiries: 0800 024 2400
Authorised Inv Funds OasisCresGl LowBal D ($) Dist $ 11.74 - 0.04 0.00
Authorised Inv Funds Short Maturity Euro Bond A F € 20.38 - 0.00 0.00
Manek Investment Mgmt Ltd (1000)F (UK)
Unit Trust Manager/ACD - Host Capital Charifund Inc 1431.98 - 14.22 4.83
P.O.Box 100, Swindon SN1 1WR 0844 800 9401 US Dollar Liquidity A F $ 13.03 - 0.00 0.00 OasisCresGl Med Eq Bal A ($) Dist $ 11.94 - 0.05 0.32
HC KB Capital Growth A Acc 168.91 - 1.66 1.36 Charifund Acc 19765.01 - 196.28 4.68 Authorised Inv Funds
US Growth A F $ 69.35 - 1.40 0.00 Oasis Crescent Gbl Property Eqty $ 9.36 - 0.03 2.00
HC KB Capital Growth A Inc 158.16 - 1.55 1.38 Growth Fd Acc 52.66 55.67 -0.40 0.00
M&G Corporate Bond A Acc 62.84xd - 0.08 3.15
US Growth AH F € 48.08 - 0.97 0.00
HC KB Enterprise Equity Income A Inc 108.27 - 0.26 5.00 M&G Corporate Bond A Inc 39.47xd - 0.05 3.15
US Growth AX F £ 45.36 - 0.71 0.00
HC KB Enterprise Equity Income A Acc 160.85 - 0.38 3.69 M&G Dividend A Inc 61.78 - 0.73 4.41 LNG Capital (CYM)
US Property A F $ 67.56 - 0.70 0.00
Kingsbury House, 15-17 King St, London SW1Y 6QU
HC KB Endeavour Multi Asset Balanced A Acc 130.58 - 0.53 0.81 M&G Dividend A Acc 618.79 - 7.31 4.26
www.lngcapital.com, Tel: 0207 839 3456
HC KB Endeavour Multi Asset Balanced A Inc 124.11 - 0.51 0.81 M&G Episode Growth X Inc 52.26xd - 0.51 1.75 Regulated
LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 - Morgens Waterfall Vintiadis.co Inc
HC KB Enterprise Fixed Income A Acc 121.93 - 0.34 3.44 M&G Episode Income A Acc 137.90xd - 0.62 3.55
Other International Funds
LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 - Odey Asset Management LLP (UK)
HC KB Enterprise Fixed Income A Inc 108.22 - 0.30 3.44 M&G Episode Income A Inc 115.00xd - 0.52 3.63 Phaeton Intl (BVI) Ltd (Est) $ 404.39 - -6.80 0.00
40 Dukes Place, London, EC3A 7NH
LNG Europa Credit Fund USD $ 1199.05 - -12.58 -
M&G Extra Income A Inc 727.67 - 6.41 4.46 Order Desk and Enquiries: 0345 300 2106
Authorised Corporate Director - Capita Financial Managers
Lloyds Investment Fund Managers Limited (1000)F (JER) M&G Extra Income A Acc 5954.42 - 52.47 4.34
Authorised Inv Funds
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Marlborough Fd Managers Ltd (1200)F (UK)
M&G Global Basics A Inc 610.71 - 8.10 0.62 CF Odey Continental European GBP R Acc 710.34 - 2.42 0.19
Other International Funds Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500
Lloydstrust Gilt £ 12.1200xd - 0.0300 2.42 M&G Global Basics A Acc 928.00 - 12.30 0.57 www.marlboroughfunds.com CF Odey Opus GBP R Inc 3726.81 - 15.15 0.00
Authorised Inv Funds
Lloyds Investment Funds Limited M&G Global Dividend Fund A Acc 188.86xd - 2.05 3.24 CF Odey Absolute Return GBP R 316.48 - -2.37 0.00
Balanced 155.26 164.16 0.29 0.05
Euro High Income € 1.6240xd - 0.0020 2.89 M&G Global Dividend Fund A Inc 149.05xd - 1.63 3.31
CF Odey Portfolio Fund GBP R Inc 146.34 - 0.75 0.07
Bond Income 49.94 52.85 0.06 4.90 Natixis International Funds (Lux) I SICAV (LUX)
European £ 7.5210xd - 0.1000 1.12 M&G Glbl Emrgng Mkts A Acc 185.01 - 2.48 0.93
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
Cash 50.02 50.02 0.00 0.32
High Income £ 0.8603xd - 0.0024 4.97 M&G Glbl Emrgng Mkts A Inc 178.74 - 2.39 0.94 FCA Recognised
Cautious Inc 82.01 86.34 0.09 1.32 Odey Asset Management LLP (CYM)
International £ 4.0170xd - 0.0520 1.03 Harris Global Equity R/A (USD) $ 263.06 263.06 2.71 0.00
M&G Global Macro Bond Fund A Acc 105.33xd - -0.31 0.82 Regulated
Defensive A Inc 117.15 117.15 0.00 0.27 Harris US Equity Fund R/A (USD) $ 214.01 214.01 3.67 0.00 OEI Mac Inc GBP A £ 362.17 - 14.98 0.00
North American £ 15.6500xd - 0.1900 0.06 M&G Global Macro Bond Fund A Inc 72.97xd - -0.22 0.82
Emerging Markets 225.56 225.56 1.86 1.69 Harris Concentrated US Equity R/A (USD) $ 162.74 162.74 3.33 0.00 OEI Mac Inc GBP B £ 197.72 - 8.75 0.00
Sterling Bond £ 1.4580xd - 0.0050 3.57 M&G Global High Yield Bond X Inc 48.86xd - 0.04 4.45
ETF Global Growth A 146.88 146.88 -0.09 0.00 Loomis Sayles Strategic Alpha R/A (USD) $ 110.59 110.59 -0.03 - OEI MAC Inc USD $ 1933.42 - 78.16 0.00
UK £ 6.4780xd - 0.1300 1.62 M&G Global High Yield Bond X Acc 115.26xd - 0.08 4.43
Lloyds Gilt Fund Limited ETF Commodity A 66.78 66.78 -0.23 0.00 Odey European Inc EUR € 842.77 - 31.53 0.00
M&G Managed Growth X Inc 75.77xd - 0.94 0.57
Lloyds Gilt Fund Quarterly Share £ 1.2620 - 0.0030 1.90 European Multi-Cap 272.50 272.50 2.02 0.20
M&G Optimal Income A Inc 141.89xd - 0.12 2.51
Natixis International Funds (Dublin) I plc (IRL) Odey European Inc GBP A £ 323.71 - 12.01 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
Monthly Share £ 1.2140xd - 0.0030 1.90 Extra Income 79.08 83.68 0.63 4.39 Odey European Inc GBP B £ 183.69 - 6.82 0.00
M&G Optimal Income A Acc 187.45xd - 0.16 2.51 Regulated
Lloyds Money Fund Limited Far East Growth A Inc 160.07 160.07 1.21 2.35
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.26 12.26 0.00 1.19 Odey European Inc USD $ 388.19 - 14.14 0.00
Sterling Class £ 52.6090 - 0.0000 0.15 M&G Recovery GBP A Inc 117.15 - 1.45 0.75
Global 176.98 186.31 0.12 0.00
Loomis Sayles High Income R/D (USD) $ 8.45 8.45 0.01 14.41 Giano Capital EUR Inc € 4453.26 - 0.00 0.00
Lloyds Multi Strategy Fund Limited M&G Recovery GBP A Acc 263.06 - 3.26 0.75
Global Bond Inc 135.18 143.05 0.04 3.22
Conservative Strategy £ 1.0910 - 0.0020 1.97 M&G Strategic Corp Bond A Inc 72.97 - 0.08 2.96 Loomis Sayles Multisector Income R/D (GBP) $ 12.21 12.21 0.01 5.68
High Yield Fixed Interest 73.25 77.72 0.27 5.68
Growth Strategy £ 1.4750 - 0.0050 1.32 M&G Strategic Corp Bond A Acc 104.76 - 0.11 2.96 Odey Asset Management LLP (IRL)
Multi Cap Income A Inc 156.84 156.84 1.15 4.49 FCA Recognised
Aggressive Strategy £ 1.8130 - 0.0100 0.00 M&G Global Leaders GBP A Inc 191.67 - 2.17 1.35 Natixis International Funds (UK)
Odey Pan European EUR R € 354.87 - -0.15 0.00
Nano-Cap Growth A Acc 103.9371 114.0300 0.0532 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
Global USD Growth Strategy $ 1.4090 - 0.0110 0.00 M&G Global Leaders GBP A Acc 451.41 - 5.10 1.33
Authorised Funds Odey Allegra European EUR O € 265.36 - -1.01 0.00
Dealing Daily Special Situations A Acc 1173.77 1242.08 3.60 0.38
M&G UK Inflation Lnkd Corp Bnd A Acc 111.88xd - -0.02 0.11 H2O MultiReturns Fund N/A (GBP) £ 1.44 - 0.00 1.46
UK Multi-Cap Growth A Inc 241.49 255.54 1.87 0.38 Odey Allegra International EUR O € 182.63 - -0.01 0.00
M&G UK Inflation Lnkd Corp Bnd A Inc 110.27xd - -0.03 0.11 Harris Associates Global Concentrated Equity Fund N/A (GBP) £ 1.05 - 0.01 0.00
UK Micro Cap Growth A 475.27 502.93 0.49 0.00 Odey Allegra Developed Markets USD I $ 133.32 - 0.79 0.00
Loomis Sayles Strategic Income N/D (GBP) £ 0.95 - 0.00 4.21
US Multi-Cap Income 319.51 319.51 2.89 0.17 Odey European Focus Fund € 18.07 - -0.05 0.49
M & G Securities Ltd (UK) MFM - Third Party Funds
Loomis Sayles Strategic Income H-N/D (GBP) £ 0.92 - 0.00 4.27
Odey Atlas Fund GBP I S £ 1.15 - 0.00 0.00
Property & Other UK Unit Trusts
Junior Oils 68.82 72.83 2.60 0.00 Loomis Sayles US Equity Leaders N/A (GBP) £ 1.49 - 0.01 0.26
Odey Giano European Fund EUR R € 117.26 - -0.10 0.00
Charibond 122.77xd - 0.12 5.29
Junior Gold C Acc 19.48 19.48 0.14 0.00 Seeyond Factor Plus Europe Ex U.K Equity Fund N/A (GBP) £ 0.99 - 0.01 -
Odey Naver Fund EUR I € 128.17 - -0.14 0.00
(Accum Units) 3634.68xd - 3.68 5.29
Lombard Odier Funds (Europe) S.A (LUX)
MFM Artorius Fund 157.58 157.58 -1.06 0.17 Seeyond Factor Plus U.K Equity Fund N/A (GBP) £ 1.01 - 0.02 -
Odey Odyssey USD I $ 151.97 - -0.08 0.00
www.loim.com NAACIF 74.66xd - 0.65 4.69
Regulated MFM Bowland 155.69 168.31 -1.86 0.00 Odey Orion Fund EUR I € 123.06 - 0.41 0.00
(Accum Units) 6691.77xd - 57.87 4.57
Lombard Odier Funds
MFM Hathaway Inc 105.87 110.86 -0.45 1.54 NatWest (2230)F (UK) Odey Swan Fund EUR I € 92.89 - -0.91 0.00
Absolute Ret Bond (EUR) PA € 11.97 - -0.01 0.00 M&G Property Portfolio A Acc 133.94 140.98 0.02 3.45
PO Box 23873, Edinburgh EH7 5WJ**
MFM SGWM Managed A Acc 125.44 125.44 -0.12 0.15 Odey European Absolute Return GBP S £ 97.67 - -0.55 0.00
Absolute Ret Bond (USD) PA $ 17.60 - -0.01 0.00 Property Portfolio A 122.88 129.34 0.02 3.52 Enquiries: 0800 085 5588
MFM Techinvest Special Situations Acc 139.60 139.60 -0.56 0.01 Authorised Inv Funds
All Roads (CHF) PA SFr 17.47 - 0.02 0.00 Property Portfolio X 122.88 122.88 0.02 3.51 Series 1(Minimum initial investment 16375,000)
MFM Techinvest Technology Acc 345.07 345.07 -10.64 0.00
All Roads (USD) PA $ 11.14 - 0.02 0.00 United Kingdom Equity Index Fund £ 12.33 - 0.02 2.77 Odey Wealth Management (CI) Ltd (IRL)
MFM UK Primary Opportunities A Inc 329.71 329.71 2.14 1.34 www.odey.com/prices
All Roads (GBP) PA £ 11.37 - 0.01 0.00 M & G (Guernsey) Ltd (GSY) UK Specialist Equity Inc £ 19.19 - 0.03 0.41 FCA Recognised
Slater Investments Ltd - Investment Adviser
Regulated Odey Opportunity EUR I € 227.59 - 1.75 0.00
All Roads (EUR) PA € 11.28 - 0.01 0.00 MFM Slater Growth 414.29 439.57 0.42 0.11 Contl Europe Spec Equity £ 15.61 - 0.02 0.00
The M&G Offshore Fund Range
Alpha Japan (EUR) PA F € 11.95 - -0.02 0.00 MFM Slater Income A Inc 162.42 162.42 0.30 3.77 US Spec Equity Fund £ 13.91 - 0.16 0.00
Corporate Bond 1314.04 1354.69 1.66 3.17
Alpha Japan (CHF) PA F SFr 14.92 - -0.02 0.00 MFM Slater Recovery 179.11 190.04 0.57 0.23 Japan Specialist Fund X £ 9.83 - 0.01 0.00 Omnia Fund Ltd
Global Basics 2260.85 2330.77 29.76 0.31
Other International Funds
Alpha Japan (JPY) PA F ¥ 1421.00 - -2.00 0.00 Pacific Basin Specialist Equity Fund £ 21.60 - 0.36 0.67
Global Leaders 3330.24 3469.00 37.64 1.13
Estimated NAV $ 838.81 - 21.56 0.00
Alpha Japan (USD) PA F $ 17.12 - -0.03 0.00 UK Sovereign Bd Index Fund £ 10.81 - 0.03 2.52
Global High Yield Bond 960.60 990.31 0.78 4.44 Marlborough International Management Limited (GSY)
Alternative Beta PA F SFr 115.81 - 0.32 0.00 Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 UK Specialist Equity Income Fund £ 9.52 - 0.02 3.88
Global Macro Bond Fund 10955.68 11294.51 -32.94 0.82
FCA Recognised
Alternative Beta PA F € 78.25 - 0.22 0.00 Global Spec Inv Grade Bd Fund GBP £ 9.73 - 0.00 3.23
North American Dividend Fund 156.58 163.10 1.48 2.18 Marlborough North American Fund Ltd £ 31.18 31.49 -0.05 0.00
Alternative Beta PA F $ 117.10 - 0.34 0.00 Inflation Lkd Sov Bd Fund £ 12.50 - -0.04 0.68
Optimal Income Fund 140.60 144.95 0.12 2.52 Marlborough Tiger Fund Ltd F £ 25.56 25.82 -1.12 0.00
Commodities (CHF) PA SFr 4.98 - -0.02 0.00
Recovery Fund Limited 'A' Participating Shares 10139.89 10562.38 123.97 0.45
Global Emerg Mkts Equity Fund X £ 11.12 - 0.12 0.54
Commodities (EUR) PA € 5.04 - -0.03 0.00 Series 2 (Investment Management customers only)
Recovery Fund Limited 'I' Participating Shares 10161.91 10264.56 124.97 1.29
Marwyn Asset Management Limited (CYM) United Kingdom Equity Index Fund £ 12.32 - 0.02 3.27
Commodities (USD) PA $ 5.22 - -0.03 0.00
Strategic Corporate Bond Fund 132.49 138.01 0.14 2.97 Regulated Optima Fund Management
UK Specialist Equity Inc £ 19.37 - 0.02 1.73 Other International Funds
Convertible Bd P A € 17.69 - 0.00 0.00 Marwyn Value Investors £ 463.87 - -14.48 0.00
UK Select 1511.11 1574.07 5.10 1.20
Contl Europe Spec Equity £ 16.27 - 0.02 0.63 Cuttyhunk Fund II Limited $ 1549.16 - -5.02 0.00
Convertible Bd Asia PA F SFr 13.59 - 0.01 0.00
US Spec Equity Fund £ 14.49 - 0.15 0.15 JENOP Global Healthcare Fund Ltd $ 14.71 - 0.01 0.00
Convertible Bd Asia PA F € 14.51 - 0.02 0.00 McInroy & Wood Portfolios Limited (UK)
Japan Specialist Fund X £ 10.40 - 0.00 0.51 OPTIKA Fund Limited - Cl A $ 104.52 - -0.84 -
Easter Alderston, Haddington, EH41 3SF 01620 825867
Convertible Bd Asia PA F $ 14.62 - 0.02 0.00
Authorised Inv Funds Pacific Basin Specialist Equity Fund £ 21.37 - 0.36 1.34 Optima Fd NAV $ 90.37 - 0.16 0.00
Emerg. Consumer (CHF) PA SFr 11.65 - 0.01 0.00
Balanced Fund Personal Class Units 3887.60xd - 27.50 1.91 Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00
UK Sovereign Bd Index Fund £ 10.99 - 0.03 2.52
Emerg. Consumer (EUR) PA € 11.80 - 0.01 0.00
Income Fund Personal Class Units 2369.20 - 15.40 2.90 The Dorset Energy Fd Ltd NAV (Est) $ 28.41 - -2.05 0.00
UK Specialist Equity Income Fund £ 10.30 - 0.02 3.81
Emerg. Consumer (USD) PA $ 11.79 - 0.01 0.00
Emerging Markets Fund Personal Class Units 1572.00xd - 6.30 2.49 Platinum Fd Ltd $ 87.75 - 0.60 0.00
Emerg.Eq. Risk Par.(EUR) PA € 7.98 - 0.00 0.00
MFS Investment Funds (LUX) Global Spec Inv Grade Bd Fund GBP £ 9.89 - 0.00 3.23
FCA Recognised Smaller Companies Fund Personal Class Units 3616.30 - 27.30 1.71 Platinum Fd Ltd EUR € 17.06 - 0.12 0.00
Inflation Lkd Sov Bd Fund £ 12.63 - -0.04 0.68
Emerg. Eq. Risk Par.(USD) PA $ 5.94 - 0.00 0.00 Blend.Research Gb.Eq.Fd. € 107.39 - 1.25 -
Platinum Japan Fd Ltd $ 53.47 - -0.18 0.00
Global Emerg Mkts Equity Fund X £ 10.67 - 0.12 0.75
Emerg. Loc.Cur.&Bds DH (CHF) PASFr 7.88 - 0.00 0.00 Blend.Research Gb.Eq.Fd. £ 101.00 - 1.19 -
Meridian Fund Managers Ltd The initial charge you will pay will depend on the amount you invest Optima Partners Global Fd $ 14.28 - 0.04 0.00
Emerg.Loc.Cur.Bd.Fdt PA SFr 8.59 - 0.03 0.00 Blend.Research U.S.Core Eq.Fd. ¥ 10666.00 - 192.00 - Other International Funds **Address and Telephone number for series 1 only
Optima Partners Focus Fund A $ 15.86 - 0.16 0.00
Emerg.Loc.Cur.Bd.Fdt PA € 11.41 - 0.01 0.00 Global Gold & Resources Fund $ 179.68 - 10.63 -
Blend.Research Gb.Eq.Fd. $ 100.94 - 1.15 -
Emerg.Loc.Cur.Bd.Fdt PA $ 8.44 - 0.00 0.00 Global Energy & Resources Fund $ 33.88 - 1.76 -
Em.Mk.Eq.Fund Euro € 116.83 - 0.63 0.00
Oryx International Growth Fund Ltd
Euro BBB-BB Fdt PA SFr 15.52 - 0.01 0.00 Em.Mk.Eq.Fund Sterling £ 96.16 - 0.52 0.00
Other International Funds
Euro BBB-BB Fdt PA € 12.34 - 0.01 0.00 Em.Mk.Eq.Fd.US Dollar $ 95.00 - 0.48 0.00 Ministry of Justice Common Investment Funds (UK) NAV (Fully Diluted) £ 6.69 - 0.06 0.00
Property & Other UK Unit Trusts
Euro BBB-BB Fdt PA £ 10.90 - 0.01 0.00 Em.Mk.Loc.Ccy Debt Fd.FC ¥ 8215.00 - -140.00 5.79
The Equity Idx Tracker Fd Inc 1320.00 1320.00 12.00 2.87
Euro BBB-BB Fdt PA $ 17.52 - 0.01 0.00 Em.Mk.Loc.Ccy Debt Fd.FD ¥ 9948.00 - -185.00 6.22
Distribution Units New Capital Fund Management Ltd (IRL) OTP Asset Management Romania SAI SA ((ROM))
Euro Credit Bd PA F € 12.92 - 0.00 0.00 Leconfield House, Curzon Street, London, W1J 5JB www.otpfonduri.ro
Gb.Conc.Eq.Fd.Euro € 297.40 - 2.99 0.00
Other International Funds
FCA Recognised
Euro Government Fdt PA € 12.61 - 0.03 0.00 Gb.Conc.Eq.Fd.Sterl.UK T £ 174.11 - 1.77 0.00
Mirabaud Asset Management (LUX) New Capital UCITS Funds OTP Comodisro $ 16.84 - 0.00 -
Euro Inflation-Lk Fdt PA € 12.10 - 0.02 0.00 Gb.Conc.Eq.Fd.Sterling £ 263.61 - 2.68 0.00 www.mirabaud.com, marketing@mirabaud.com Asia Pac Bd USD Inst Inc $ 92.45 - 0.03 3.25
OTP Obligatiuni $ 14.25 - 0.00 -
Regulated
Euro Resp.Corp. Fdt PA € 18.22 - 0.01 0.00 Gb.Conc.Eq.Fd.US $ 200.49 - 1.96 0.00 Asia Pac Bd USD Ord Inc $ 94.26 - 0.04 2.52
Mir. Conv. Bds Eur A EUR € 140.05 - -0.12 0.00 OTP Avantisro $ 8.55 - -0.01 -
Europe High Conviction PA € 12.07 - -0.01 0.00 Gb.Eq.Hdg Fd.Euro IRE T € 189.05 - 1.82 0.00 Asia Pac Eq EUR Ord Inc € 86.77 - -0.15 3.28
Mir. Conv. Bds Glb A USD $ 117.50 - -0.04 0.00 OTP Euro Bond $ 12.40 - 0.00 -
Eurozone Small&Mid Caps PA € 54.36 - -0.11 0.00 Gb.Eq.Euro Hdg Fd. € 267.93 - 2.58 0.00 Asia Pac Eq GBP Ord Inc £ 90.02 - -0.15 3.72
Mir. - Eq Asia ex Jap A $ 175.02 - 2.95 0.00 OTP Dollar Bond $ 10.58 - 0.00 -
Fdmt.Eq.L/S SH Sd EUR PA € 10.62 - 0.06 0.00 Gb.Eq.Fund Euro € 297.71 - 2.80 0.00 Asia Pac Eq USD Ord Inc $ 90.56 - -0.14 3.11
Mir. - Eq Glb Emrg Mkt A USD $ 89.87 - 1.45 0.00 OTP Premium Return $ 1072.23 - 0.26 -
Fdmt.Eq.L/S SH Sd USD PA $ 10.65 - 0.05 0.00 Gb.Eq. Fd Euro IRE T € 188.34 - 1.77 0.00 Asia Pac Eq USD Inst Acc $ 96.10 - -0.15 0.00
Mir. - Eq Global Focus A USD $ 102.54 - 1.22 0.00
Gbl.Gvt.Fdmt PA € 10.67 - 0.00 0.00 Gb.Eq.Fd.Sterling UK T £ 210.74 - 2.00 0.00 Asia Pac Eq USD Inst Inc $ 101.19 - -0.16 3.82
Mir. -Eq Spain A € 26.72 - -0.12 0.00
Gbl.Gvt.Fdmt.(CHF) PA SFr 23.22 - 0.10 0.00 Gb.Eq.Fd.US Dollar $ 316.83 - 2.87 0.00 Dyn Europ Eq EUR Ord Inc € 180.62 - -0.04 1.34
Mir. - Eq Swiss Sm/Mid A SFr 329.04 - 1.70 0.00
Gbl.Gvt.Fdt.SH (CHF) PA SFr 26.56 - 0.01 0.00 Gb.Eq.Fund Sterling £ 208.37 - 1.97 0.00 Dyn Europ Eq GBP Ord Inc £ 191.83 - -0.03 1.71
Mir. - Glb High Yield Bds A $ 108.64 - -0.07 -
Gbl.5B Fdmt (EUR) PA € 12.04 - 0.01 0.00 Gb.Val.Ex-Jap.Fd.USD $ 119.05 - 1.22 0.00 Dyn Europ Eq USD Ord Inc $ 180.17 - -0.03 1.26
Mir. - Glb Eq High Income A USD $ 100.44 - 0.69 0.00
Gbl.5B Fdmt (CHF) PA SFr 10.69 - 0.05 0.00 Gb.Val.Ex-Japan Fd.Yen ¥ 14467.00 - 163.00 0.00 China Equity EUR Ord Acc € 138.09 - -1.66 0.00
Mir. - Glb Inv Grade Bds A € 101.04 - 0.13 -
Permal Investment Mgmt Svcs Ltd
Gbl.5B Fdmt SH (USD) PA $ 10.93 - 0.00 0.00 Gb.Val.Fd. Euro € 138.01 - 1.44 0.00 China Equity GBP Ord Acc £ 144.39 - -1.68 0.00
Mir. - Glb Strat. Bd A USD $ 104.84 - 0.01 0.00 www.permal.com
Generation Global (CHF) PA F SFr 14.18 - 0.10 0.00 Gb.Val.Fd.Sterling £ 117.66 - 1.24 0.00 China Equity USD Ord Acc $ 140.56 - -1.63 0.00 Other International Funds
Offshore Fund Class A US $ Shares
Generation Global (EUR) PA F € 21.52 - 0.07 0.00 Gb.Val.Fd.USD $ 105.92 - 1.08 0.00 China Equity USD Inst Acc $ 144.44 - -1.66 0.00
MW Japan Fund Plc (IRL) Investment Holdings N.V. $ 5437.88 - 160.86 0.00
Generation Global (USD) PA F $ 15.63 - 0.05 0.00 Low Volatility Gb.Eq.Fd.Euro € 107.10 - 0.80 - FCA Recognised Global Val.Cr.Fd GBP Ord Inc £ 111.54 - 0.02 3.60
Macro Holdings Ltd $ 4125.71 - -83.51 0.00
Global Energy (USD) PA F $ 6.92 - 0.14 0.00 Low Volatility Gb.Eq.Fd.Sterl £ 100.72 - 0.76 - MW Japan Fund PLC A $ 25.63 - 0.33 - Global Val.Cr.Fd USD Inst Acc $ 123.18 - 0.02 0.00
Fixed Income Holdings N.V. $ 366.06 - 2.19 -
Golden Age (CHF) PA F SFr 21.46 - 0.18 0.00 Low Volatility Gb.Eq.Fd.USD $ 100.66 - 0.72 - MW Japan Fund PLC B $ 25.85 - 0.34 - Global Val.Cr.Fd GBP Ord Acc £ 177.62 - 0.04 0.00
Permal Absolute Return Fund $ 163.11 - 0.59 0.00
Golden Age (EUR) PA € 14.60 - 0.12 0.00 Low Volatility Gb.Eq.Fd.Yen ¥ 9702.00 - 79.00 - MW Japan Fund PLC C $ 100.88 - 1.10 - Global Val.Cr.Fd USD Ord Acc $ 166.70 - 0.02 0.00
Asset Management
Golden Age (USD) PA F $ 20.26 - 0.17 0.00
Global Val.Cr.Fd EUR Ord Acc € 155.36 - 0.03 0.00
Sh.T- Money Mkt EUR PA
Sh.T- Money Mkt CHF PA
€ 112.29
SFr 128.62
-
-
0.00 0.00
0.00 0.00
MFS Meridian Funds SICAV
Regulated
Asset Management (LUX) Morant Wright Funds (Ireland) PLC
FCA Recognised
(IRL) Swiss Select Equity Inst Acc SFr 114.44 - 0.31 0.00
Swiss Select Equity Ord Acc SFr 113.19 - 0.30 0.00
Absolute Return A1 € 20.52 - -0.09 0.00 Morant Wright Fuji Yield EUR Acc Hedged € 11.68 - 0.07 -
Sh.T- Money Mkt GBP PA £ 10.27 - 0.00 0.00 US Growth USD Ord Acc $ 214.44 - 4.11 0.00
Asia ex-Japan A1 $ 22.81 - 0.15 0.00 Morant Wright Fuji Yield EUR Dist Hedged € 11.50 - 0.07 -
Sh.T- Money Mkt USD PA $ 10.31 - 0.00 0.00 US Growth EUR Ord Acc € 205.34 - 4.08 0.00
Bond A1 $ 10.36 - -0.01 0.00 Morant Wright Fuji Yield GBP Acc Hedged £ 11.93 - 0.08 -
Sw.Fr.Bd(For) PA SFr 23.82 - 0.02 0.00 US Growth GBP Ord Acc £ 215.73 - 4.17 0.00 Pictet Asset Management (Europe) SA (LUX)
China Equity Fd A1 $ 9.39 - 0.11 0.00 Morant Wright Fuji Yield GBP Dist Hedged £ 11.60 - 0.08 - 15, Avenue J.F. Kennedy L-1855 Luxembourg
Sw.Fr.Credit Bd(For) PA SFr 13.65 - 0.00 0.00 US Growth USD Inst Acc $ 197.96 - 3.79 0.00
Tel: 0041 58 323 3000
Continental European Eqty A1 € 17.97 - 0.01 0.00 Morant Wright Fuji Yield USD Acc Hedged $ 11.60 - 0.08 -
Tactical Alpha (CHF) PA SFr 10.11 - -0.02 0.00 Wealthy Nat Bd EUR Inst Inc € 109.24 - 0.09 3.75 FCA Recognised
Emer Mkts Debt Lo Curr Fd A1 $ 11.01 - 0.02 0.00 Morant Wright Fuji Yield USD Dist Hedged $ 11.63 - 0.08 - Pictet-Absl Rtn Fix Inc-HI EUR € 106.12 - 0.02 0.00
Tactical Alpha (EUR) PA € 10.41 - -0.02 0.00 Wealthy Nat Bd GBP Inst Inc £ 113.40 - 0.09 3.59
Emerging Markets Debt A1 $ 33.06 - 0.04 0.00 Morant Wright Fuji Yield YEN Acc ¥ 1196.10 - 7.82 - Pictet-Absl Rtn Glo Div-I EUR F € 123.44 - 0.23 0.00
Tactical Alpha (USD) PA $ 14.98 - -0.03 0.00 Wealthy Nat Bd EUR Ord Inc € 108.43 - 0.09 3.51
Emerging Markets Eq.A1 $ 10.53 - 0.06 0.00 Morant Wright Fuji Yield B YEN Acc ¥ 1056.98 - 6.92 - Pictet-Agriculture-I EUR F € 191.00 - 2.49 0.00
Technology PA € 13.41 - 0.17 0.00 Wealthy Nat Bd GBP Ord Inc £ 114.00 - 0.10 3.33
Morant Wright Fuji Yield YEN Dist ¥ 1171.29 - 7.66 -
Asset Management
European Concentrated A1 € 18.07 - 0.04 0.00 Pictet-Asian Equities Ex Japan-I USD F $ 205.91 - 3.38 0.00
Technology PA
Wld Gold Expertise PAF
$ 20.32
SFr 8.52
-
-
0.25 0.00
0.20 0.00
European Core Eq A1 € 32.56 - 0.02 0.00 Morant Wright Sakura Fund Sterling Acc Hedged £ 14.53 - 0.15 0.00 Managemen
Pictet-Asian Local Currency Debt-I USD F $ 151.03 - 0.75 0.00
Asset Management Asset Management
Friday 20 November 2015 ★ FINANCIAL TIMES 27

MANAGED FUNDS SERVICE

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

Pictet-Biotech-I USD F $ 858.80 - 23.46 0.00 Santander Atlas Port 4 Acc Inst 163.70 - 0.30 - Far Eastern Income and Growth Fund A Class 416.40 - 4.40 3.24 EGV - Acc Z 270.30 - 2.50 0.82 UK Growth B Inc 414.90 - 0.48 0.56

Pictet-Brazil Index I USD $ 39.07 - 0.41 0.00 Royal Bank of Scotland (2230)F (UK) Santander Atlas Port 5 Acc Ret 190.50 - 0.30 - Fixed Interest Fund A Class 120.10xd - 0.10 3.42 Continental Mastertrust B Inc X F 323.19 - 1.70 0.91 Money Market
PO Box 23873, Edinburgh EH7 5WJ 0800 917 7072 CGV Acc S 112.00 - 1.00 0.06
Pictet-CHF Bonds I CHF

Pictet-China Index I USD

SFr 509.17

$ 107.96
-

-
0.07 0.00

-0.04 0.00
Authorised Inv Funds
Series 5 (Minumum Initial Investment £75,000)
Santander Atlas Port 5 Acc Inst

Santander Atlas Port 6 Acc Ret

161.60

259.70
-

-
0.20

0.50
-

-
Global Gold and Resources Fund A Class

MM Endurance Balanced Fund A Class

126.60

211.10
-

-
3.20 0.00

0.40 1.20 CGV Acc X 110.80 - 0.90 0.00

Outstanding British Cos A Acc X F

Outstanding British Cos B Acc X F

249.75

260.91
-

-
2.20 0.68

2.31 1.46
Trusts and
Pictet-Clean Energy-I USD F $ 79.45 - 0.83 0.00 United Kingdom Equity Index Fund £ 15.42 - 0.02 2.77 Santander Atlas Port 6 Acc X 185.40 - 0.30 - MM Global Investment Fund A Class 2107.00 - 10.00 1.83 CGV Inc A 111.60 - 1.00 - UK Smaller Cos A Inc X F 436.90 - 0.36 0.34 Bank Accounts Gross
Pictet-Digital Communication-I USD F $ 263.10 - 3.01 0.00 UK Specialist Equity Inc £ 19.20 - 0.03 0.41 Santander Atlas Port 6 Acc Inst 159.80 - 0.30 - North American Fund A Class 1692.00 - 24.00 0.00 CGV Inc B 111.60 - 1.00 - UK Smaller Cos B Inc X F 426.93 - 0.35 1.21 Gross Net AER Int Cr
Platinum Capital Management Ltd
Pictet-Eastern Europe-I EUR F € 290.07 - 1.73 0.00 Other International Funds Contl Europe Specialist Fund £ 23.05 - 0.03 0.00 Santander Atlas Port 7 Acc Ret 202.00 - 0.60 - Oriental Growth Fund A Class 147.40 - 1.80 1.04 UK Income A Acc X F 262.64 - 1.56 3.85

Pictet-Em Lcl Ccy Dbt-I USD F $ 154.97 - 0.05 0.00 Platinum All Star Fund - A (Est) $ 117.96 - - - Japan Specialist Fund X £ 14.87 - 0.00 0.00 Santander Atlas Port 7 Acc Inst 160.20 - 0.40 - UK Equity Growth Fund A Class 412.70 - 2.90 0.67 The Hartford International Funds (IRL) UK Income A Inc X F 235.62 - 1.40 3.94
CCLA Investment Management Ltd
Regulated Senator House 85 Queen Victoria Street, London EC4V 4ET
Pictet-Emerging Markets-I USD F $ 479.99 - 6.59 0.00 Platinum Global Dividend Fund - A (Est) $ 57.18 - - - US Spec Equity Fund £ 18.79 - 0.20 0.00 Authorised Inv Funds UK Equity Income Fund A Class 226.50 - 2.00 4.75 UK Income B Acc X F 278.84 - 1.66 3.83 CBF Church of England Deposit Fund 0.50 - 0.50 Qtr
Gbl Govt Bond (Ex Japan) Index (GBP) £ 1564.64 - 2.02 0.00
Max 70% Shs Acc Ret 167.00 - 1.10 -
Pictet-Emerging Markets Index-I USD F $ 213.71 - -0.33 0.00 Platinum Global Dividend UCITS Fund $ 68.16 - 0.67 5.13 Pacific Basin Specialist Equity Fund £ 38.09 - 0.63 0.68 UK Income B Inc X F 250.28 - 1.49 3.93
UK Corporate Bond £ 1566.78 - 3.64 0.00 CCLA Fund Managers Ltd
Max 70% Shs Inc Ret 140.60 - 0.90 -
Pictet-Emerging Corporate Bonds I USD $ 106.69 - 0.11 0.00 Platinum Essential Resources UCITs Fund $ 5.27 - -0.01 0.00 UK Sovereign Bd Index Fund £ 10.60 - 0.04 2.52
Smith & Williamson Fd Admin Ltd (1200)F (UK)
Gilt £ 1572.30 - 0.79 0.00 Senator House 85 Queen Victoria Street, London EC4V 4ET
Investments Inc Acc Ret 154.00 - 0.20 - 25 Moorgate, London, EC2R 6AY 0141 222 1150 COIF Charities Deposit Fund 0.45 - 0.45 Qtr
Pictet-Emerging Markets High Dividend I USD $ 94.80 - 1.31 0.00 Platinum Maverick Enhanced Fund Limited (Est) $ 95.79 - - 0.00 Inflation Lkd Sov Bd Fund £ 12.75 - -0.03 0.68
Authorised Inv Funds Global Eq (Ex Japan) Index Fund ¥ 1.40 - 0.02 0.00 Value Partners Hong Kong Limited (IRL)
Investments Inc Inc Ret 101.90 - 0.10 - www.valuepartners.net, fis@vp.com.hk
Pictet-Emerging Markets Sust Eq I USD $ 83.70 - -0.28 0.00 UK Specialist Equity Income Fund £ 9.49 - 0.01 3.88
S&W Deucalion Fd (OEIC) 2102.00 - -8.00 0.24 Global Eq (ex Japan) Class HJ4 ¥ 1.45 - 0.01 0.00 Regulated
Equity Inc Inc Inst 249.70 - 2.50 -
Pictet-Environmental Megatrend Sel I EUR € 166.49 - 1.70 0.00 Global Emerg Mkts Equity Fund X £ 10.74 - 0.12 0.50
S & W Magnum 377.10 398.40 2.80 1.94 Value Partners Asia ex-Japan Equity Fund $ 8.81 - -0.03 -
Pictet-EUR Bonds-I F € 557.75 - 1.91 0.00 Global Spec Inv Grade Bd Fund GBP £ 9.58 - 0.01 3.23
Equity Inc Inc Ret 214.10 - 2.10 -
Global Eq (ex Japan) Class JP5 ¥ 1.60 - 0.02 0.00
Data Provided by
S & W Marathon Trust 185.20 196.00 1.20 1.75 Global Eq Ex Japan Index Fund (Hedge) ¥ 1.46 - 0.01 0.00 Value Partners Classic Equity Fund USD Z Unhedged $ 11.26 - 0.09 0.00
Series 6 (Investment Management Customers Only) Equity Inc Acc Inst 150.80 - 1.50 -
Pictet-EUR Corporate Bonds Ex Fin i EUR € 143.45 - 0.13 0.00
Charity Value and Income Fund Acc 140.40 141.30 1.60 4.59 Gbl Govt Bond (Ex Japan) Index ¥ 1.35 - 0.01 0.00 Value Partners Classic Equity Fund CHF HedgedSFr 11.81 - 0.09 0.00
United Kingdom Equity Index Fund £ 15.21 - 0.02 3.27 N&P UK Gwth Inc Ret 166.50 - 1.50 -
Pictet-EUR Corporate Bonds-I F € 199.80 - 0.67 0.00
Charity Value and Income Fund Inc 94.54 95.17 1.08 4.72 Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.32 - 0.00 0.00 Value Partners Classic Equity Fund EUR Hedged € 11.93 - 0.09 0.00
UK Specialist Equity £ 19.38 - 0.03 1.73 Stckmkt 100 Track Gwth Acc Inst 92.22 - 1.45 -
Pictet-EUR Government Bonds I EUR € 158.85 - 0.47 0.00
Polar Capital Funds Plc (IRL) Japan Equity Index Fund ¥ 1.10 - 0.01 0.00 Value Partners Classic Equity Fund GBP Hedged £ 12.20 - 0.10 0.00
Contl Europe Specialist Fund £ 23.81 - 0.03 0.63 Stckmkt 100 Track Gwth Acc Ret 171.20 - 2.70 -
Pictet-EUR High Yield-I F € 242.98 - 0.26 0.00 Regulated
Standard Life Wealth (JER) Japan Equity Class JP3 ¥ 1.34 - 0.01 0.00 Value Partners Classic Equity Fund GBP Unhedged £ 12.47 - -0.01 0.00
Japan Specialist Fund X £ 15.62 - 0.00 0.51 UK Growth Acc Inst 291.30 - 2.60 -
Pictet-EUR Short Mid-Term Bonds-I F € 136.96 - 0.01 0.00 Asian Financials I USD $ 279.70 279.70 2.64 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Value Partners Classic Equity USD Hedged $ 13.86 - 0.11 0.00
Pictet-EUR Short Term HY I EUR € 119.91 - 0.08 0.00 Biotechnology I USD $ 18.34 18.34 0.39 0.00
US Spec Equity Fund £ 19.62 - 0.21 0.15 UK Growth Acc Ret 337.60 - 3.00 - FCA Recognised
Standard Life Offshore Strategy Fund Limited Value Partners Greater China Equity Fund $ 8.75 - -0.03 -
www.morningstar.co.uk
Pacific Basin Specialist Equity Fund £ 37.70 - 0.63 1.33 UK Growth Inc Ret 222.50 - 2.00 - The National Investor (TNI)
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.99 - 0.00 0.00 European Income Acc EUR € 11.94 11.94 0.01 0.00
Bridge Fund £ 1.6321 - 0.0153 1.97 www.tni.ae
Data as shown is for information purposes only. No
Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.70 - -0.08 -
UK Sovereign Bd Index Fund £ 10.72 - 0.04 2.52 Managed OEIC offer is made by Morningstar or this publication.
Pictet-Euroland Index IS EUR € 136.90 - -0.53 0.00 European Ex UK Inc EUR Acc € 10.15 10.15 0.00 - Other International Funds
Glob Em Shs Port Acc Ret 153.10 - 0.20 - Diversified Assets Fund £ 1.1810 - 0.0052 3.01 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 9.28 - -0.09 -
Inflation Lkd Sov Bd Fund £ 12.62 - -0.03 0.68 TNI Blue Chip UAE Fund * AED 9.72 - -0.03 0.00
Pictet-Europe Index-I EUR F € 176.36 - -0.20 0.00 Financial Opps I USD $ 12.49 - 0.04 2.11
Max 70% Shs Port Acc Ret 255.20 - 0.80 - Global Equity Fund £ 1.9028 - 0.0232 1.03 Value Partners Health Care Fund USD Class A Unhedged $ 9.32 - -0.09 -
UK Specialist Equity Income Fund £ 10.30 - 0.02 3.81 TNI Funds Ltd (BMU)
Pictet-European Equity Selection-I EUR F € 651.65 - 3.57 0.00 GEM Growth I USD $ 8.53 - -0.01 0.00
Max 70% Shs Port Acc X 183.30 - 0.70 - Global Balanced Fund - Income Units £ 1.3523 - 0.0101 1.86 MENA Hedge Fund $ 945.66 - 2.84 0.00
Global Spec Inv Grade Bd Fund GBP £ 9.87 - 0.00 3.23
Pictet-European Sust Eq-I EUR F € 251.03 - -1.09 0.00 GEM Income I USD $ 9.46 - 0.00 0.00
Max 70% Shs Port Acc S 148.20 - 0.50 - Global Balanced Fund - Accumulations Units £ 1.5695 - 0.0116 1.83 TNI Funds Plc (Ireland)
Global Emerg Mkts Equity Fund X £ 10.68 - 0.12 0.73 Veritas Asset Management LLP (IRL)
Global Alpha I USD $ 12.88 12.88 0.11 0.00
Pictet-Global Bds Fundamental I USD $ 115.24

Pictet-Global Bonds-I EUR € 165.60

-

-
-0.04 0.00

0.00 0.00 Global Convertible I USD $ 11.43 11.43 0.01 0.00

Address and telephone number for Series 5 only Investment Port Acc Ret 230.50 - 0.10 - Global Fixed Interest Fund £ 0.9941 - -0.0001 4.89 MENA UCITS Fund * $ 1094.98 - -3.73 0.00 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Veritas Funds Plc Guide to Data
Investment Port Acc X 163.40 - 0.10 - Sterling Fixed Interest Fund £ 0.8414 - 0.0013 4.18 www.veritas-asset.com
Pictet-Global Emerging Currencies-I USD F $ 96.30 - -0.13 0.00 Global Insurance I GBP £ 4.14 - 0.05 0.00 +353 1 635 6799
Royal London Unit Managers Ltd. (1200) F (UK) Max 50% Shs Port Acc Ret 243.80 - 0.70 - UK Equity Fund £ 1.9401 - 0.0232 2.68 Thesis Unit Trust Management Limited (UK) The fund prices quoted on these pages are supplied by
Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP FCA Recognised
Pictet-Global Emerging Debt-I USD F $ 357.62 - 0.42 0.00 Global Technology I USD $ 23.84 - 0.39 0.00 5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777 the operator of the relevant fund. Details of funds
Max 50% Shs Port Inc Ret 217.20 - 0.70 - Authorised Funds Institutional published on these pages, including prices, are for the
Healthcare Blue Chip Fund I USD Acc $ 10.68 10.68 0.16 0.00 Authorised Inv Funds
Pictet-Global Megatrend Selection-I USD F $ 224.18 - 2.55 0.00 Veritas Asian Fund A USD H $ 314.47 - 4.76 0.43 purpose of information only and should only be used
Max 50% Shs Port Acc X 176.50 - 0.50 - TM New Court Fund A 2011 Inc £ 12.83 - -0.01 0.00
Royal London Sustainable Diversified A Inc £ 1.56 - 0.01 1.96 as a guide. The Financial Times Limited makes no
Pictet-Greater China-I USD F $ 452.57 - 6.53 0.00 Healthcare Opps I USD $ 38.59 - 0.51 0.00 Veritas Asian Fund A GBP H £ 381.47 - 5.03 0.25
Max 50% Shs Port Acc S 147.80 - 0.50 - TM New Court Fund - A 2014 Acc £ 12.91 - 0.05 0.00 representation as to their accuracy or completeness
Royal London Sustainable World A Inc 173.00 - 2.00 0.83 and they should not be relied upon when making an
Pictet-Health-I USD $ 276.21 - 5.12 0.00 Income Opportunities B2 I GBP Acc £ 1.72 1.72 0.00 0.00 Veritas Asian Fund A EUR H € 333.33 - 3.96 0.22
Max 100% Shs Port Acc Ret 280.30 - 1.50 - TM New Court Equity Growth Fund - Inc £ 12.90 - -0.02 0.00 investment decision.
Royal London Corporate Bond Mth Income 88.50 93.16 0.18 4.21
Pictet-High Dividend Sel I EUR F € 160.69 - 0.80 0.00 Japan Alpha I JPY ¥ 220.36 220.36 2.28 0.00 Veritas China Fund A USD $ 142.09 - 1.47 0.35
Royal London European Growth Trust 109.70 115.50 1.10 0.93 Max 100% Shs Port Acc X 201.20 - 1.10 - The sale of interests in the funds listed on these pages
Pictet-India Index I USD $ 92.58 - -1.53 0.00 Japan I JPY ¥ 2197.99 - 16.62 0.00 Veritas China Fund A GBP £ 147.12 - 1.51 0.37 may, in certain jurisdictions, be restricted by law and
Royal London Sustainable Leaders A Inc 470.20 - 5.70 0.82 Max 100% Shs Port Acc S 146.70 - 0.70 - the funds will not necessarily be available to persons
North American I USD $ 17.92 17.92 0.28 0.00 Stenham Asset Management Inc
Pictet-Indian Equities-I USD F $ 439.15 - 6.03 0.00 Veritas China Fund A EUR € 140.73 - 1.46 0.37 in all jurisdictions in which the publication circulates.
Royal London UK Growth Trust 484.30 509.80 5.60 1.46 Enhanced Inc Inc Ins 213.50 - 2.00 - www.stenhamassetmanagement.com
Persons in any doubt should take appropriate
Pictet-Japan Index-I JPY F ¥ 16944.41 - 147.48 0.00 UK Absolute Equity I GBP £ 12.68 12.68 0.00 0.00 Other International Funds Veritas Global Equity Income Fund D USD $ 116.69 - 2.67 4.14 professional advice. Data collated by Morningstar. For
Royal London UK Income With Growth Trust 224.00 235.80 2.20 4.48 Enhanced Inc Inc Ret 201.60 - 1.90 -
Stenham Asia USD $ 130.04 - 6.40 - other queries contact reader.enquiries@ft.com +44
Pictet-Japanese Equities Opp-I JPY F ¥ 10168.14 - 96.99 0.00 Veritas Global Equity Income Fund D EUR € 211.03 - 3.87 4.10 (0)207 873 4211.
Royal London US Growth Trust 155.20 163.30 2.50 0.00 Enhanced Inc Inc X 171.40 - 1.70 -
Stenham Credit Opportunities A Class USD $ 102.06 - -0.68 0.00
Pictet-Japanese Equity Selection-I JPY F ¥ 15206.15 - 131.76 0.00 Polar Capital LLP (CYM)
Additional Funds Available Veritas Global Equity Income Fund D GBP £ 148.48 - 2.89 4.21
Enhanced Inc Acc Inst 159.40 - 1.50 - The fund prices published in this edition along with
Regulated
Please see www.royallondon.com for details Stenham Equity UCITS USD $ 143.33 - 0.49 0.00 Toscafund Asset Management LLP (UK) additional information are also available on the
Pictet-LATAM Index I USD $ 51.72 - 0.49 0.00 Managed Investments OEIC Veritas Global Focus Fund D USD $ 25.95 - 0.30 0.64
ALVA Convertible A USD $ 128.85 - 0.86 0.00 www.toscafund.com Financial Times website, www.ft.com/funds. The
Stenham Growth USD $ 214.90 - 3.75 -
Pictet-LATAM Lc Ccy Dbt-I USD F $ 109.12 - 0.26 0.00 Max 30% Shs Port Acc Ret 154.50 - 0.30 - Authorised Funds Veritas Global Focus Fund D EUR € 24.39 - 0.18 0.64 funds published on these pages are grouped together
European Conviction A EUR € 139.75 - -3.36 0.00 by fund management company.
Ruffer LLP (1000)F (UK) Stenham Healthcare USD $ 180.64 - 0.66 0.00 Aptus Global Financials B Acc £ 3.15 - 0.00 4.59
Pictet-Pacific Ex Japan Index-I USD F $ 318.16 - -1.46 0.00 Max 30% Shs Port Acc X 154.30 - 0.30 - Veritas Global Focus Fund D GBP £ 28.85 - 0.24 0.64
European Forager A EUR € 174.69 - -3.67 0.00 40 Dukes Place, London EC3A 7NH Prices are in pence unless otherwise indicated. The
Stenham Managed Fund USD $ 113.66 - 1.13 - Aptus Global Financials B Inc £ 2.79 - 0.00 4.59
Pictet-Premium Brands-I EUR F € 158.95 - 0.78 0.00 Order Desk and Enquiries: 0345 601 9610 Max 30% Shs Port Acc S 148.10 - 0.20 - Veritas Global Focus Fund A GBP £ 27.87 - 0.23 0.37 change, if shown, is the change on the previously
Authorised Inv Funds Stenham Macro UCITS USD $ 102.37 - 0.20 - quoted figure (not all funds update prices daily). Those
Pictet-Quality Global Equities I USD $ 135.11 - 1.63 0.00 Max 30% Shs Inc Port Inc Ret 153.20 - 0.40 - Veritas Global Focus Fund A EUR € 14.22 - 0.10 0.36
Authorised Corporate Director - Capita Financial Managers designated $ with no prefix refer to US dollars. Yield
Polunin Capital Partners Ltd Stenham Multi Strategy USD $ 116.22 - -0.84 - percentage figures (in Tuesday to Saturday papers)
Pictet-Russia Index I USD $ 52.79 - 0.90 0.00 CF Ruffer Investment Funds Max 30% Shs Inc Port Inc X 153.30 - 0.40 - Toscafund Asset Management LLP (CYM) Veritas Global Focus Fund A USD $ 25.05 - 0.29 0.37
Other International Funds allow for buying expenses. Prices of certain older
Stenham Quadrant USD A $ 394.26 - -1.46 - www.toscafund.com
Pictet-Russian Equities-I USD F $ 45.40 - 0.64 0.00 Emerging Markets Active $ 40.93 - -0.92 - CF Ruffer Gold Fund C Acc 77.06 - -1.91 0.00 Max 30% Shs Inc Port Inc S 147.20 - 0.40 - Veritas Global Focus Fund C GBP £ 30.25 - 0.25 0.00 insurance linked plans might be subject to capital
Regulated
Stenham Trading Inc USD $ 114.29 - -0.38 - gains tax on sales.
Pictet-Security-I USD F $ 201.29 - 1.55 0.00 Luxcellence Em Mkts Tech $ 892.96 - -23.26 0.00 CF Ruffer Gold Fund O Acc 76.29 - -1.89 0.00 Max 60% Shs Port Acc Ret 268.20 - 0.90 - Tosca A USD (Est) $ 302.50 - 5.17 0.00 Veritas Global Focus Fund C EUR € 25.69 - 0.19 0.00
Stenham Universal USD $ 431.83 - -0.28 - Guide to pricing of Authorised Investment Funds:
Pictet-Select-Callisto I EUR € 106.08 - -0.42 0.00 Polunin Developing Countries $ 728.64 734.83 -1.92 0.00 Equity & General C Acc 377.19 - -7.27 0.06 Max 60% Shs Port Inc Ret 212.30 - 0.80 - Tosca Mid Cap GBP £ 259.26 - 0.54 0.00 Veritas Global Focus Fund C USD $ 27.27 - 0.33 0.00 (compiled with the assistance of the IMA. The
Stenham Universal II USD $ 160.04 - -0.18 0.00 Investment Management Association, 65 Kingsway,
Pictet-Small Cap Europe-I EUR F € 1148.79 - -3.97 0.00 Polunin Discovery - Frontier Markets $ 1386.75 - -14.50 0.00 Equity & General C Inc 347.88 - -6.71 0.06 Max 60% Shs Port Inc X 164.40 - 0.60 - Tosca Opportunity B USD $ 357.47 - 5.56 0.00 Veritas Global Equity Income Fund A GBP £ 142.32 - 2.76 4.21 London WC2B 6TD.
Pictet-ST.MoneyMkt-I € 140.48 - 0.01 0.00 Equity & General O Inc 346.54 - -6.70 0.00 Max 60% Shs Port Inc S 145.60 - 0.50 - Tel: +44 (0)20 7831 0898.)
Polunin Small Cap $ 1363.81 1380.86 -27.34 0.00 Veritas Global Equity Income Fund A EUR € 205.05 - 3.76 4.11

Pictet-ST.MoneyMkt JPY I USD ¥ 101517.48 - -5.50 0.00 Equity & General O Acc 373.49 - -7.22 0.00
Managed Investments OEIC 2 Stratton Street Capital (CI) Limited (GSY) Veritas Global Equity Income Fund A USD $ 112.31 - 2.57 4.14 OEIC: Open-Ended Investment Company. Similar to a
Investments Inc Port Inc Ret 162.20 - 0.20 - Regulated unit trust but using a company rather than a trust
Pictet-ST.MoneyMkt-ICHF SFr 124.34 - 0.00 0.00 European C Acc 503.76 - -6.46 0.26 Veritas Global Equity Income Fund C GBP £ 171.02 - 3.32 - structure.
Private Fund Mgrs (Guernsey) Ltd (GSY) Japan Synthetic Warrant Yen Class ¥ 1906.06 - 117.12 0.00
Regulated Investments Inc Port Inc X 147.00 - 0.20 -
Pictet-ST.MoneyMkt-IUSD $ 135.18 - 0.00 0.00 European O Acc 498.86 - -6.42 0.00 Veritas Global Equity Income Fund C EUR € 246.28 - 4.52 - Different share classes are issued to reflect a different
Japan Synthetic Warrant GBP Hedged Class £ 198.78 - 36.88 0.00
Monument Growth 17/11/2015 £ 489.47 494.98 -1.03 1.00 £ Gov Bond Inc Inst (gross) 176.20 - 0.00 - currency, charging structure or type of holder.
Pictet-Timber-I USD F $ 152.27 - 2.54 0.00 Japanese Fund C Acc 186.84 - -1.92 0.00 Veritas Global Equity Income Fund C USD $ 134.10 - 3.07 -
Japan Synthetic Warrant USD Class $ 20.20 - 1.13 0.00
£ Gov Bond Inc Inst 144.70 - 0.10 - Selling price: Also called bid price. The price at which
Pictet Total Ret-Agora I EUR € 115.67 - -0.12 0.00 Japanese Fund O Acc X 184.77 - -1.91 0.00 Veritas Global Real Return Fund A USD $ 20.04 - 0.05 0.30
Japan Synthetic Warrant USD Hedged Class $ 197.94 - 36.59 0.00 TreeTop Asset Management S.A. (LUX) units in a unit trust are sold by investors.
Prusik Investment Management LLP (IRL) £ Gov Bond Acc Inst 146.10 - 0.10 -
Pictet Total Ret-Corto Europe I EUR € 136.41 - -0.24 0.00 Pacific C Acc 300.86 - -4.16 0.55 Regulated Veritas Global Real Return Fund A GBP £ 11.22 - 0.03 0.33
Enquiries - 0207 493 1331 Renminbi Bond Fund AUD Cls A A$ 121.44 - -0.07 3.78 Buying price: Also called offer price. The price at
Strat Bond Inc Inst (gross) 181.20 - 0.30 - TreeTop Convertible Sicav
Pictet Total Ret-Divers Alpha I EUR € 104.80 - 0.12 0.00 Regulated Pacific O Acc 297.63 - -4.13 0.25 Veritas Global Real Return Fund A EUR € 11.83 - 0.03 0.12 which units in a unit trust are bought by investors.
Renminbi Bond Fund AUD Cls B A$ 123.23 - -0.07 3.52
Strat Bond Inc Inst 149.60 - 0.30 - International A € 307.24 - 2.05 0.00 Includes manager’s initial charge.
Pictet Total Ret-Kosmos I EUR € 109.07 - 0.04 0.00 Prusik Asian Equity Income B Dist $ 159.68 - 1.54 3.75 Total Return C Acc 391.42 - -2.82 1.36 Retail
Renminbi Bond Fund CHF Cls A SFr 118.39 - -0.07 3.83
Strat Bond Acc Inst 150.70 - 0.30 - International B $ 393.15 - 2.61 0.00 Veritas Asian Fund B USD $ 219.30 - 3.32 0.00 Single price: Based on a mid-market valuation of the
Pictet Total Ret-Mandarin I USD $ 113.92 - -0.50 0.00 Prusik Asia A $ 197.11 - 2.85 0.00 Total Return C Inc 271.20 - -2.13 1.38
Managed Investments OEIC 3 Renminbi Bond Fund CHF Cls B SFr 118.12 - -0.07 3.59 underlying investments. The buying and selling price
International C £ 132.33 - 0.89 0.00 Veritas Asian Fund B GBP £ 281.36 - 3.71 0.00 for shares of an OEIC and units of a single priced unit
Pictet-US Equity Selection-I USD $ 192.81 - 3.63 0.00 Prusik Asian Smaller Cos A $ 141.70 - 1.21 0.00 Total Return O Inc 268.40 - -2.14 1.38
Div Inc Port Inc Ret 176.40 - 1.70 - Renminbi Bond Fund CNH Cls A CNH 126.63 - 0.09 3.34 trust are the same.
International D € 285.16 - 1.90 2.96 Veritas Asian Fund B EUR € 245.71 - 2.86 0.00
Pictet-US High Yield-I USD F $ 145.71 - -0.02 0.00 Total Return O Acc 387.55 - -2.82 1.36
Corp Bond Acc Inst (gross) 211.80 - 0.30 - Renminbi Bond Fund CNH Cls B CNH 126.30 - 0.08 3.11 TreeTop Global Sicav Treatment of manager’s periodic capital charge:
Veritas China Fund B GBP £ 142.64 - 1.45 0.00
Pictet-USA Index-I USD F $ 183.92 - 2.93 0.00 Purisima Investment Fds (UK) (1200)F (UK)
Corp Bond Inc Inst 141.30 - 0.20 - Renminbi Bond Fund Euro Cls B € 119.82 - -0.07 3.59 Global Opp.A € 144.66 - 2.10 0.00 The letter C denotes that the trust deducts all or part
40 Dukes Place, London EC3A 7NH Veritas China Fund B EUR € 163.91 - 1.09 0.00 of the manager’s/operator’s periodic charge from
Pictet-USD Government Bonds-I F $ 632.00 - -0.23 0.00 capital, contact the manager/operator for full details
Order Desk and Enquiries: 0345 922 0044 Corp Bond Acc Inst 143.90 - 0.20 - Renminbi Bond Fund GBP Cls B £ 121.87 - -0.07 3.38 Global Opp.B $ 141.39 - 1.96 0.00
Veritas Global Focus Fund B USD $ 18.10 - 0.21 0.00 of the effect of this course of action.
Pictet-USD Short Mid-Term Bonds-I F $ 129.56 - -0.04 0.00 Authorised Inv Funds Multi-Manager OEIC Renminbi Bond Fund SGD Cls B S$ 121.00 - -0.08 3.34 Global Opp.C £ 178.13 - 2.54 0.00
Authorised Corporate Director - Capita Financial Managers Veritas Global Focus Fund B GBP £ 21.31 - 0.18 0.00 Exit Charges: The letter E denotes that an exit charge
Pictet-USD Sov.ST.Mon.Mkt-I $ 102.60 - 0.00 0.00 Bal Intl Track Acc Ret 264.00 - 1.60 -
Global Total Fd PCG A 168.59 - 1.85 0.34 Renminbi Bond Fund USD Cls B $ 121.25 - -0.07 3.15 Sequoia Equity A € 147.65 - 2.26 0.00 may be made when you sell units, contact the
Veritas Global Focus Fund B EUR € 16.95 - 0.12 0.00 manager/operator for full details.
Pictet-Water-I EUR F € 291.33 - 2.52 0.00 Bond Mthly Inc Acc Ret 142.40 - 0.20 -
Global Total Fd PCG B 167.09 - 1.84 0.13 Renminbi Bond Fund YEN Cls B ¥ 13350.69 - -4.64 0.00 Sequoia Equity B $ 150.09 - 2.14 0.00
Veritas Global Equity Income Fund B GBP £ 130.94 - 2.53 4.23
Bond Mthly Inc Inc Ret 91.35 - 0.11 - Time: Some funds give information about the timing of
Renminbi Bond Fund USD Cls A $ 167.25 - -0.09 3.38 Sequoia Equity C £ 169.16 - 2.49 0.00
Global Total Fd PCG INT 164.92 - 1.81 0.00 S W Mitchell Capital LLP (CYM) Veritas Global Equity Income Fund B EUR € 188.20 - 3.45 4.12 price quotes. The time shown alongside the fund
Pimco Fds: Global Investors Series Plc (IRL) Regulated Renminbi Bond Fund GBP Cls A £ 162.51 - -0.08 3.62 manager’s/operator’s name is the valuation point for
PIMCO Europe Ltd,11 Baker Street,London W1U 3AH Veritas Global Equity Income Fund B USD $ 111.36 - 2.54 4.16 their unit trusts/OEICs, unless another time is
S W Mitchell European Fund Class A EUR € 334.37 - 23.63 - Santander Asset Management UK Limited (1200)F (UK)
http://gisnav.pimco-funds.com/ Renminbi Bond Fund SGD Cls A S$ 160.34 - -0.10 3.58 indicated by the symbol alongside the individual unit
Purisima Investment Fds (CI) Ltd (JER) 287 St Vincent Street, Glasgow G2 5NB 0845 605 4400 Veritas Global Real Return Fund B USD $ 19.46 - 0.06 0.00 trust/OEIC name.
Dealing: +44 20 3640 1000 S W Mitchell Small Cap European Fund Class A EUR € 233.97 - 4.05 -
Regulated Authorised Inv Funds Renminbi Bond Fund YEN Cls A ¥ 19767.64 - -6.93 0.00
PIMCO Funds: +44 (0)20 3640 1407 Veritas Global Real Return Fund B GBP £ 11.02 - 0.03 0.00 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
PCG B X 169.43 - 0.34 0.00 The Charlemagne Fund EUR € 323.41 - -9.82 - Santander Premium Fund (OEIC)
FCA Recognised Renminbi Bond Fund EUR Cls A € 110.24 - -0.07 3.83 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
A Shares Veritas Global Real Return Fund B EUR € 12.65 - 0.03 0.00
Capital Securities Inst Acc $ 15.10 - 0.02 0.00 PCG C X 167.09 - 0.34 0.00 midnight. Daily dealing prices are set on the basis of
Europe (ex-UK) 275.80 - 2.60 - the valuation point, a short period of time may elapse
Commodity Real Return Fund Inst Acc $ 5.94 - -0.01 0.00 S W Mitchell Capital LLP (IRL) before prices become available. Historic pricing: The
Regulated Japan Equities 157.80 - 1.10 - Troy Asset Mgt Ltd (UK) Veritas Asset Management LLP letter H denotes that the managers/operators will
Credit Absolute Return Fund Inst Acc $ 11.10 - -0.02 0.00 Putnam Investments (Ireland) Ltd (IRL) 40 Dukes Place, London EC3A 7NH www.veritas-asset.com
normally deal on the price set at the most recent
SWMC European Fund B EUR € 15544.08 - -104.80 0.00 Pacific Bas (ex-Japan) 499.30 - 6.90 -
Regulated Order Desk and Enquiries: 0345 608 0950 valuation. The prices shown are the latest available
Diversified Income - Inst Acc $ 19.36 - 0.00 0.00 Other International Funds before publication and may not be the current dealing
Putnam New Flag Euro High Yield Plc - E € 1017.37 - 0.38 4.30 SWMC UK Fund B £ 11544.90 - 4.27 0.00 Sterling Bonds 262.90 - 0.40 - Authorised Inv Funds
Real Return Asian Fund USD (Est) € 281.21 - -1.94 0.00 levels because of an intervening portfolio revaluation
Diversified Income Durat Hdg Fund Inst Acc $ 11.31 - -0.01 0.00 ACD Capita Financial Mgrs
SWMC Small Cap European Fund B EUR € 13528.31 - -44.72 0.00 UK Equities 269.10 - 2.60 - or a switch to a forward pricing basis. The
Emerging Asia Bond Fund Inst Acc $ 9.63 - 0.01 0.00 Trojan Investment Funds Real Return Asian Fund GBP (Est) £ 300.43 - -1.99 0.00 managers/operators must deal at a forward price on
SWMC Emerging European Fund B EUR € 9455.79 - 7.97 0.00 US Equities 267.50 - 3.40 - request, and may move to forward pricing at any time.
Rathbone Unit Trust Mgmt (1200)F (UK) E.I. Sturdza Strategic Management Limited (GSY) Spectrum Fund 'O' Acc ♦ 161.28 - 0.14 0.28 Real Return Asian Fund EUR (Est) $ 296.71 - -1.93 0.00
Emerging Local Bond - Inst Acc $ 10.85 - 0.01 0.00 Forward pricing: The letter F denotes that that
PO Box 9948, Chelmsford, CM99 2AG B Shares Regulated
Spectrum Fund 'O' Inc ♦ 157.21 - 0.14 0.28 managers/operators deal at the price to be set at the
Emerging Markets Bond - Inst Acc $ 38.32 - 0.05 0.00 Order Desk: 0845 300 2101, Enquiries: 0207 399 0399 Nippon Growth Fund Limited ¥ 106273.37 - 3516.59 0.00 next valuation.
Pacific Bas (ex-Japan) 498.60 - 6.90 -
Authorised Inv Funds Spectrum Income Fund 'O' Acc 96.67 - 0.14 -
Emerging Markets Corp.Bd Fund Inst Acc F $ 12.85 - 0.01 0.00 Strat Evarich Japan Fd Ltd JPY ¥ 96739.00 - 569.00 0.00 Waverton Investment Funds Plc (1600)F (IRL) Investors can be given no definite price in advance of
Blue Chip Income Inc 153.63 158.63 1.90 4.24 waverton.investments@citi.com
Spectrum Income Fund 'O' Inc 96.23 - 0.14 - the purchase or sale being carried out. The prices
Emerging Markets Short-Term Local Currency Fund $ 11.78 - 0.00 0.00 Strat Evarich Japan Fd Ltd USD $ 958.08 - 5.71 0.00
Blue Chip Income Acc 229.03 236.27 2.82 4.11 Saracen Fund Managers Ltd (1000)F (UK) FCA Recognised appearing in the newspaper are the most recent
Trojan Fund O Acc ♦ 257.46 - 1.23 0.44 provided by the managers/operators. Scheme
Euro Bond - Inst Acc € 22.82 - 0.04 0.00 19 Rutland Square, Edinburgh EH1 2BB Waverton Asia Pacific A USD $ 17.40 - 0.22 5.08
Ethical Bond Inc 89.83 91.82 0.16 4.76 particulars, prospectus, key features and reports: The
Dealing: 00 353 1 603 9921 Trojan Fund O Inc ♦ 213.59 - 1.02 0.44
Euro Credit - Inst Acc € 14.81 - 0.02 0.00 Waverton Global Bond Fund Cls A $ 8.78 - 0.01 5.47 most recent particulars and documents may be
Ethical Bond Acc 171.81 175.26 0.30 5.23 Saracen Investment Funds ICVC (OEIC) Enq. 0131 202 9100 E.I. Sturdza Funds PLC (IRL)
obtained free of charge from fund
RobecoSAM (LUX) Regulated Trojan Global Equity O Acc 219.07 - 1.67 0.89
Euro Income Bond - Inst Acc F € 13.02 - 0.01 0.00 Authorised Inv Funds Waverton Global Equity Fund A GBP £ 13.66 - 0.14 0.59 managers/operators. * Indicates funds which do not
Global Opportunities Acc 140.16 144.57 1.50 0.11 Tel. +41 44 653 10 10 http://www.robecosam.com/ price on Fridays.
Saracen Growth Fd Alpha Acc £ 3.59 - 0.01 1.00 Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 1143.21 - -1.50 0.00 Trojan Global Equity O Inc 186.61 - 1.43 0.89
Euro Long Average Duration - Inst Acc € 21.79 - 0.16 0.00 Regulated Waverton UK Fund A GBP £ 13.39 - 0.11 1.88
Income Inc 855.88 885.86 8.81 4.12
Saracen Growth Fd Beta Acc £ 5.73 - 0.01 1.50 Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1345.78 - -1.68 0.00 Trojan Income O Acc ♦ 277.90 - 2.93 3.63 Charges for this advertising service are based on the
Euro Low Duration Fund Inst Acc € 11.30 - 0.00 0.00 RobecoSAM Sm.Energy/A £ 10.90 - 0.16 1.32 Waverton Equity Fund A GBP £ 14.62 - 0.07 0.19
Income Acc 1331.79 1376.70 13.71 4.00 number of lines published and the classification of the
Saracen Global Income & Growth Fund A - Acc £ 1.14 - 0.01 3.05 Nippon Growth (UCITS) Fund JPY Class A shares ¥ 105605.00 - -137.00 0.00 Trojan Income O Inc ♦ 176.04 - 1.86 3.75 fund. Please contact data@ft.com or
Euro Real Return - Inst Acc € 13.57 - 0.03 0.00 RobecoSAM Sm.Energy/N € 11.79 - 0.18 0.00 Waverton Sterling Bond Fund A GBP £ 9.45 - 0.01 5.36
Multi Asset Enhanced Growth Acc 121.54 - 0.89 0.00 call +44 (0)20 7873 3132 for further information.
Saracen Global Income & Growth Fund A - Dist £ 1.06 - 0.01 2.79 Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 88553.00 - -115.00 0.00
Euro Short-Term Inst Acc € 12.28 - 0.00 0.00 RobecoSAM Sm.Materials/A £ 120.94 - 0.66 2.05
Multi Asset Strategic Growth inc 148.31 - 0.68 1.14
Saracen Global Income and Growth Fund -Acc # £ 1.41 - 0.01 3.43 Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00 UBS Global Asset Mgmt Fds Ltd (UK)
Euro Ultra Long Duration - Inst Acc € 28.48 - 0.24 0.00 RobecoSAM Sm.Materials/N € 148.73 - 0.80 0.00
WA Fixed Income Fund Plc
Asset Management
Multi Asset Strategic Growth acc 156.94 - 0.72 1.14 (IRL)
Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 57313.00 - -74.00 0.00 21 Lombard Street, London, EC3V 9AH
Saracen Global Income and Growth Fund -Dist # £ 1.24 - 0.00 2.82
Asset Management Asset Management
Global Advantage - Inst Acc $ 11.97 - 0.00 0.00 RobecoSAM Sm.Materials/Na € 102.63 - 0.55 - Regulated
Client Services 0800 587 2113, Client Dealing 0800 587 2112
Multi Asset Total Return inc 125.93 - 0.28 1.83
Saracen UK Income Fund - Acc £ 0.98 - 0.00 - Strategic China Panda Fund USD $ 2229.48 - 15.90 0.00 www.ubs.com/retailfunds European Multi-Sector € 117.93 - 0.34 0.00
Global Advantage Real Return Fund Inst Acc $ 8.48 - 0.02 0.00 RobecoSAM Gl.Small Cap Eq/A £ 76.16 - 0.77 1.77
Multi Asset Total Return acc 138.77 - 0.30 1.80 Authorised Inv Funds
Saracen UK Income Fund - Dist £ 0.98 - 0.01 - Strategic China Panda Fund Hedged EURO € 2172.60 - 16.61 0.00
Global Bond - Inst Acc $ 27.89 - 0.02 0.00 RobecoSAM Gl.Small Cap Eq/N € 162.20 - 1.62 0.00 OEIC
Recovery Inc 423.53 440.15 3.78 2.61 . Strategic China Panda Fund Hedged Sterling £ 2201.36 - 16.36 0.00 Global Emerg Mkts Eqty B Acc £ 1.30 - 0.01 1.75
Global Bond Ex-US - Inst Acc $ 19.53 - 0.03 0.00 RobecoSAM Sustainable Gl.Eq/B € 187.71 - 1.65 0.00
Recovery Acc 511.78 531.31 4.57 2.56 For Save & Prosper please see Countrywide Assured
Strategic Euro Bond Accumulating Class CHFSFr 985.98 - -0.48 0.00 Global Optimal B Acc £ 1.00 - 0.01 0.65
Global High Yield Bond - Inst Acc $ 19.93 - -0.01 0.00 RobecoSAM Sustainable Gl.Eq/N € 161.91 - 1.42 0.00
Strategic Bond I-Class Acc 124.66 125.30 0.11 3.95
Strategic Euro Bond Institutional Class EUR € 1011.84 - -0.41 0.00 UBS UK Opportunities Fund B Acc £ 0.87 - 0.02 3.09
Global Investment Grade Credit - Inst Income $ 12.14 - 0.00 3.65 RobecoSAM S.HealthyLiv/B € 177.99 - 2.12 0.00
Strategic Bond I-Class Inc 109.34 109.98 0.09 3.90 Schroder Property Managers (Jersey) Ltd
Other International Funds Strategic Euro Bond Fund Accumulating Class Shares € 1134.71 - -0.47 0.00 US Equity B Acc £ 1.50 - 0.03 0.30
Global Investment Grade Credit Fund Inst Acc € € 11.98 - 0.01 0.00 RobecoSAM S.HealthyLiv/N € 165.77 - 1.98 0.00
Indirect Real Estate SIRE £ 133.22 139.31 0.83 2.34 Strategic Euro Bond Fund Distributing Class Shares € 1024.03 - -0.42 1.33 UBS S&P 500 Index C Acc £ 0.54 - 0.01 -
Global Investment Grade Credit Fund Inst Acc $ $ 16.60 - 0.00 0.00 RobecoSAM S.HealthyLiv/Na £ 101.23 - 1.21 - Yuki International Limited (IRL)
Strategic European Smaller Companies Fund EUR Class € 956.34 - -18.53 - UBS Targeted Return B Acc £ 1.28 - 0.01 0.82 Tel +44-20-7269-0207 www.yukifunds.com
Global Multi-Asset - Inst Acc $ 14.60 - 0.07 0.00 RobecoSAM S.Water/A £ 165.64 - 1.20 2.27
Regulated
Scottish Friendly Asset Managers Ltd (UK) Strategic Global Bond RMB Acc $ 1063.46 - -0.91 0.00 UBS Sterling Corporate Bond Indexed Fund 50.49 - 0.07 3.31
Global Real Return - Inst Acc $ 17.88 - 0.04 0.00 RobecoSAM S.Water/N € 170.21 - 1.22 0.00 Yuki Mizuho Umbrella Fund
Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000 Strategic Global Bond USD Acc $ 1040.20 - 0.15 0.00
Income Fund Inst Acc $ 12.40 - 0.02 0.00 Authorised Inv Funds UBS Multi Asset Income B Inc (net) £ 0.49 - 0.00 3.60 Yuki Mizuho Japan Dynamic Growth ¥ 7157.00 - 47.00 0.00
Strategic US Momentum and Value Fund $ 788.25 - 16.10 0.00 UBS UK Equity Income B Inc Net £ 0.38 - 0.01 4.83 Yuki Mizuho Japan Large Cap ¥ 3911.00 - -3229.00 0.00
Inflation Strategy Fund Inst Acc $ 8.78 - 0.01 0.00 Managed Growth ♦ 238.80 - 1.50 0.00

Robeco Asset Management (LUX) Strategic US Momentum & Value Fund USD I Class $ 523.27 - 10.68 0.00 Corporate Bond UK Plus B Inc Net £ 0.51 - 0.00 4.00 Yuki Japan Low Price ¥ 26781.00 - 109.00 0.00
Low Average Duration - Inst Acc $ 14.80 - 0.00 0.00 UK Growth ♦ 261.50 - 2.10 0.00
Coolsingel 120, 3011 AG Rotterdam, The Netherlands. Strategic US Momentum and Value EUR Hedged Class EUR € 550.33 - 11.23 0.00
PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 8.52 - 0.04 0.00 UBS Global Allocation (UK) B Acc £ 1.09 - 0.01 1.44 Yuki Japan Value Select ¥ 12653.00 - 24.00 0.00
www.robeco.com/contact
FCA Recognised Strategic US Momentum and Value CHF Hedged Class CHFSFr 547.59 - 11.23 0.00 UBS Global Enhanced Equity Income C Inc £ 0.46 - 0.01 - YMR Umbrella Fund
PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 11.00 - 0.11 0.00 SIA (SIA Funds AG) (LUX)
Asia-Pacific Equities (EUR) € 137.91 - 1.08 0.00 Regulated YMR N Growth ¥ 17589.00 - 116.00 0.00
PIMCO RAE Fundam.PLUS US Inst Acc $ 12.33 - 0.20 0.00 UBS US Growth Fund B Acc £ 1.54 - 0.03 0.00
Chinese Equities (EUR) € 78.41 - 0.49 0.00 LTIF Classic € 344.67 - 2.43 0.00 Yuki Asia Umbrella Fund
Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.73 - 0.00 0.00 Taube Hodson Stonex Ptnrs UT (1200)F (UK) UBS Emerging Markets Equity Income B Inc £ 0.35 - 0.01 6.33
Yuki Japan Rebounding Growth Fund JPY Class ¥ 23764.00 - 154.00 0.00
Em Stars Equities (EUR) € 179.59 - 3.01 0.00 LTIF Natural Resources € 73.01 - 0.95 0.00 50 Bank Street, Canary Wharf, London E14 5NT
StocksPLUS{TM} - Inst Acc $ 23.44 - 0.34 0.00 Admin: 50 Bank Street, Canary Wharf, London E14 5NT Yuki Japan Rebounding Growth Fund USD Hedged Class $ 947.09 - 6.09 -
Emerging Markets Equities (EUR) € 148.93 - 0.59 0.00 LTIF Stability A ACCU € 167.32 - -0.13 -
Total Return Bond - Inst Acc $ 27.05 - 0.01 0.00 Santander Asset Management UK Limited (1200)F (UK) Dealing & Enquiries: 0870 870 8433
Unicapital Investments (LUX)
Flex-o-Rente (EUR) € 109.41 - 0.05 0.00 287 St Vincent Street, Glasgow G2 5NB, 0845 6000 181 Authorised Inv Funds
Regulated
UK Corporate Bond - Inst Acc £ 17.18 - 0.06 0.00 Authorised Funds THS Growth & Value Funds
Glob.Consumer Trends Equities (EUR) € 161.74 - 1.90 0.00 Investments III € 5.03 - -22.38 - Zadig Gestion (Memnon Fund) (LUX)
Santander Atlas Range SIA (SIA Funds AG) (CH) International
FCA Recognised
UK Long Term Corp. Bnd Inst-Inst Acc £ 18.98 - 0.11 0.00
Santander Atlas Inc Port Acc Inst 288.00 - 0.60 - Other International Fds Investments IV - European Private Eq. € 247.75 260.13 -44.58 -
High Yield Bonds (EUR) € 124.75 - -0.02 0.00 IGV - Inc A 324.10 - 2.70 2.40 Memnon European Fund I GBP £ 111.22 - 0.29 0.00
UK Low Duration - Inst Acc £ 14.05 - 0.01 0.00 LTIF Stability Growth SFr 196.40 - -1.30 -
Lux -O- Rente (EUR) € 140.15 - 0.18 0.00 Santander Atlas Inc Port Inc Inst 222.30 - 0.50 - IGV - Inc B 323.20 - 2.60 1.58 Investments IV - Global Private Eq. € 366.42 384.74 -49.81 -
UK Real Return - Inst Acc £ 22.52 - 0.07 0.00 LTIF Stability Inc Plus SFr 174.50 - -1.20 5.86
New World Financials (EUR) € 55.73 - 0.46 0.00 Santander Atlas Port 3 Acc Ret 147.90 - 0.40 - IGV - Acc X 395.60 - 3.20 1.86
UK Sterling Long Average Duration - Inst Acc £ 21.33 - 0.15 0.00 Zebedee Capital Partners LLP (CYM)
US Premium Equities (EUR) € 184.57 - 2.68 0.00 Santander Atlas Port 3 Inc Ret 102.40 - 0.20 - IGV - Acc Y 424.40 - 3.50 2.36 Unicorn Asset Management Ltd (UK) Regulated
Unconstrained Bond - Inst Acc $ 11.92 - 0.01 0.00
US Premium Equities (USD) $ 206.34 - 3.00 0.00 Santander Atlas Port 3 Acc Inst 162.50 - 0.30 - Smith & Williamson Investment Management (1200)F (UK) PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287 Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
IGV - Acc Z 393.00 - 3.20 1.59
US High Yield Bond Fund Inst Acc $ 27.46 - -0.02 0.00 25 Moorgate, London, EC2R 6AY 020 7131 8100 Authorised Inv Funds
Santander Atlas Port 4 Acc Ret 180.20 - 0.30 - www.sandwfunds.com European Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
UK Growth A Inc 413.73 - 0.47 0.00
Authorised Inv Funds EGV - Acc S 270.30 - 2.50 0.00 Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Santander Atlas Port 4 Inc Ret 129.50 - 0.30 - Mastertrust A Inc X F 360.68 - 1.89 0.07
European Equity Fund A Class 501.00 - 5.00 0.73
28 ★ FINANCIAL TIMES Friday 20 November 2015

MARKETS & INVESTING

Commodities
Capital markets

Credit spreads a less reliable

gauge on risk in age of QE
The yield premium on US
high-yield bonds has been
moving up steadily this
year ahead of a possible
Federal Reserve interest
rate rise, and as falling
commodity prices put
pressure on miners and
oil companies, writes
Gavin Jackson.
Investors use credit
spreads — the percentage-
point difference in yields
between junk bonds and
investment-grade
corporate or Treasury
bonds — to indicate the
overall creditworthiness
of the private sector.
A deterioration in
companies’ ability to
service their debt is likely
to be felt first among
junk-rated businesses.
What are credit spreads?
A credit spread is a risk
premium that can be used
as a barometer of the
health of an underlying
corporate balance sheet.
The higher the risk of
default by a company, as
judged by rating agencies,
the more it has to pay
lenders when it sells debt.
On corporate debt the
yield, which varies with the
price in the secondary
market, is set partly in
relation to the yield on
government bonds —
often described as the
“risk-free rate”.
It is also set partly on
the premium, or spread,
investors demand based
on company-specific risk.
To calculate the credit
spread an investor earns
for taking the risk of losing
money if a company goes
bust, compare the yield
on a corporate bond with
a government bond.
For example, Vodafone
has a bond maturing in
2020 that pays investors a
fixed 1 per cent coupon.
The bond trades at 101
cents on the dollar and
yields 0.72 per cent.
A German government
bond of similar maturity
yields minus 0.17 per cent.
So the Vodafone bond’s
spread is 89 basis points.
Where does junk come in?
There are two main
categories of corporate
debt: investment-grade
and high-yield, or junk.
Gradations in the
categories denote the
likelihood of default, as
judged by rating agencies.
Any bond rated below
BB by Standard & Poor’s
or Ba by Moody’s falls into
the junk category.
Credit spreads tend to
widen the further down the
US junk bond credit spreads
Per cent
1999 01 03 05
BofA Merrill Lynch US high yield master II option-adjusted spread
Source: FRED
ratings ladder a bond falls.
Government bonds are
often given the safest AAA
rating, followed by big
blue-chip companies.
Highly indebted private
equity companies and
small shale gas drillers
tend to have ratings
among the lowest. Junk is
the riskiest bond class.
And, over the past year,
the average US junk bond
spread — over equivalent
maturity US Treasury
yields — has risen from
441bp to 590bp, having
peaked at 650bp in
October, according to
Barclays.
What sorts of risk do
investors face?
The first is default risk,
when the company goes
bust and lenders end up
negotiating how much of
their money they get back.
Credit spread risk comes
in when there is a change
in a company’s perceived
credit risk. For example, it
could take on too much
debt in an acquisition
spree or be downgraded.
A macroeconomic shock
such as lower oil prices
might affect a range of
companies negatively. In
these cases spreads are
said to “widen”, with yields
rising and prices falling.
Finally there could be a
change in the market.
Because credit spreads
reflect an assessment of
risk, a change in the
broader attitude to risk
taking can be damaging.
What about when
interest rates go up?
In the past investors in
junk bonds were better off
than those holding
investment-grade bonds
when rates rose. The size
of the credit spread
provides a bigger cushion
to absorb changes in rates.
Central banks generally
raise rates when the
economy is growing, not at
times when large numbers
of companies are likely to
struggle to pay lenders.
But this year’s rise in
credit spreads is possibly
not the most accurate
gauge of corporate credit
risk. Quantitative easing
has pushed yields on
government debt to low
levels, and into negative
territory in Europe.
The response has been a
search for yield, pushing
down borrowing costs for
all sorts of bond issuers. If
this represents an excess
of risk taking then the
uptick this year may not
tell the whole story.
20
15
10
5 assumption”, with EM earnings having
0 millennium by high commodity prices
07 09 11 13 15
Goldman sees more raw materials pain
Bank issues bearish
outlook amid lows for oil,
coal, copper and zinc
NEIL HUME AND DAVID SHEPPARD
Natural resources prices have not bot-
tomed and could fall further unless
demand improves or more supply is
curtailed, according to Goldman Sachs,
one of the most influential banks in
commodity markets.
With oil, copper, coal and zinc trading
around their lowest levels since the
financial crisis, some investors have said
prices may have troughed and could
recover in the next 12 months.
Production cuts from miners such as
Glencore, which plans to reduce annual
production of zinc by a third, have given
further grounds for optimism.
Caution reigns as EM valuations hit new low
Analysts are wary of calling a
market bottom as economic
headwinds chill sentiment
STEVE JOHNSON
The sell-off in emerging market equities
has pushed valuations to an all-time
low, by one measure at least, reflecting
the marked underperformance of the
asset class since the immediate after-
math of the global financial crisis.
EM equities have delivered a total
return of minus 2.1 per cent since the
start of 2010, compared with a 69.1 per
cent return for developed markets.
Despite this potential buy signal, ana-
lysts are not queueing up to argue that
EM equities are wildly undervalued.
“The latest leg of correction leaves
emerging markets as the unambigu-
ously cheap segment of global equity on
a fundamental basis [but], with the
exception of Russia, valuations simply
haven’t become cheap enough,” says
George Iwanicki, EM macro strategist at
JPMorgan Asset Management.
The MSCI Emerging Markets index
fell to a valuation of just 12.8 times
10-year average earnings at the end of
September, according to JPMorgan cal-
culations, taking it below the previous
nadir of 13.5 times during the 1997-98
Asian financial crises.
The cyclically adjusted price/earnings
multiple is barely half its long-term
average of 25 times average 10-year
earnings.
In contrast, the US S&P 500 index is
trading at 23.4 times cyclically adjusted
earnings, within a whisker of its
long-term average of 23.6. The MSCI
Europe index is at 15.1, against an aver-
age of 20.6.
Alex Wolf, EM economist at Standard
Life Investments, says: “EM equities
have underperformed developed mar-
kets for some time. The late 1990s was
the last time they underperformed by as
much. However, that does not mean we
will see a sharp rebound.”
The lowly valuation of EM stocks sug-
gests investors believe corporate earn-
ings over the coming decade will be
lower than in the past 10 years.
Mr Wolf says this is a “pretty safe
been elevated for much of the current
and rapid growth in both China and glo-
bal trade.
However, Mr Iwanicki is not con-
vinced this will prove the case. With the
past decade having encompassed the
But unless demand picked up, Gold- 2016 global outlook, Barclays said com-
16% US crude dipped below $40 a barrel
man said, cuts would not be enough to modities would “bump along the bot- for a second day, taking prices to a fresh
balance commodity markets. Prices tom” until there was a pick-up in global This year’s fall for three-month low. “Between now and
the Bloomberg
needed to remain “lower for longer” to economic growth. Commodity index; the end of 2016, there is a growing risk
force more production offline. “Given structural negatives . . . [and] it has shed 40% that oil inventories could swell to full
“Supply adjustments to date are still large overhangs of excess production since 2009 capacity,” said the Goldman analysts.
insufficient, and demand has done too and inventory, especially in oil, it is rea- They thought the market would avert
little to offset this slow adjustment,” its sonable to expect that the price trough $39.89 a storage crisis, but if demand weakened
analysts said in a report. “This sustains may last for some time yet,” it said. Price of WTI crude or supply remained strong “the only
the need for lower prices for even In previous cycles, oil, copper, and per barrel for way to clear the excess . . . is with sharp
longer, keeping us underweight com- gold have spent much longer trading at December; the price declines”.
modities for the next 12 months.” depressed levels than so far this cycle, January contract US benchmark West Texas Interme-
fell 1% to near $41
The Bloomberg Commodity index, a according to research by the bank. diate fell to a low of $39.89 a barrel, los-
basket of 22 commodity futures fol- The cost of transporting commodities ing as much as 2 per cent in the Decem-
lowed by institutional investors, has as measured by the Baltic Dry index fell ber contract, which expires today.
fallen 16 per cent to its lowest since 2009 yesterday to its lowest in 30 years. The January contract fell 1 per cent to
and is on course for third year of losses. Iron ore fell to $45.10 a tonne, just a $1 near $41 a barrel. North Sea Brent, the
Over that period it has fallen almost above the record low it hit in June. international benchmark, lost 0.5 per
40 per cent. Copper, seen as barometer of global cent to a low of $43.70.
Abundant supplies have been behind growth, traded as low $4,573 a tonne, a Both WTI and Brent have averaged
this year’s sell-off. A strengthening US fresh six-year low, while zinc fell a fur- less than $55 a barrel this year, the low-
dollar has been another headwind. In its ther $1,502. est level in at least 10 years.
Analysis. Equities
Equity market valuations
Price-to-10-year average earnings
(cycle-adjusted valuations)
Emerging markets (MSCI EM)
US (S&P 500)
Europe (MSCI Europe)
50
40
30
20
10
1979 87 91 95 2003 11 15
Cyclically adjusted price-to-earnings multiple uses
10-year average earnings per share.
MSCI Emerging Markets
Price-to-book ratio
3.5
3.0
2.5
2.0
1.5
1.0
1995 2000 05 10 15
Sources: JPMorgan Asset Management
Thomson Reuters Datastream
Analysts are not boom and bust of the commodity super- Some are more upbeat. Dominic Mr Iwanicki is most optimistic
queuing up to cycle, aggregate earnings have possibly Rossi, global chief investment officer for about the Russian stock market, one
suggest that not been so high that they are not repli- equities at Fidelity International, says of the few where he says valuations have
EM equities cable in the next 10 years. that while the outlook for EM econo- fallen far enough to be unambiguously
are wildly Balancing this, Mr Iwanicki says that mies continues to look “precarious”, attractive.
undervalued EM equities have been cheaper before thanks to slowing growth, a likely rise in He is also upbeat on Hong Kong, Tai-
Martin O’Neill
when measured by other metrics. US interest rates and depressed com- wan and, to a lesser degree, South
The asset class is trading on a multiple modity prices, EM equities “have likely Korea, but is avoiding most Latin Amer-
of 1.43 times book value (the value discounted much of the bad news”. ican markets.
at which assets are carried on the bal- He adds: “Many investors appear to Nevertheless, EM equities will remain
ance sheet). While this is below the have thrown in the towel — in other rangebound, he says, given a triumvi-
long-run average of 1.8 times, it is above words, given up on EMs — which is the rate of economic headwinds in the
the cyclical low of 1.28, recorded in late point at which careful investors might shape of slow growth, dollar strength
August, and the all-time low of 0.94 start looking for opportunities.” and retreating commodity prices.
in August 1998. Mr Wolf sees scope for EM corporate Mr Wolf, too, is positive on Russia,
Historically, buying EM equities at earnings to rise a little from this year’s given signs of economic stabilisation, as
this valuation has often led to double- depressed levels, but even if this does well as India, Indonesia and Mexico.
digit gains in the subsequent 12-month unfold he suggests it will present only a Mr Rossi favours EMs that are com-
period, although this is far from univer- short-term tactical buying opportunity, mitted to a reform agenda, such as India
sal, and losses have been recorded in a rather than a long-term strategic one. and Mexico. “These nations will con-
handful of cases. “There are structural issues over the tinue to attract investors’ confidence
Mr Iwanicki describes a valuation of next couple of years that will keep earn- for tackling their structural problems,”
1.4 to 1.5 times book as “the top end ings growth weak,” he says, singling out he says.
of the band that has historically been the corporate sector’s high debt levels “Countries where this is not the
‘buy’ territory”. as the largest problem. case will not see any investor interest.”

Currencies Equities

Dollar rally loses pace as focus on rates shifts
MICHAEL HUNTER, ROGER BLITZ
AND KATIE MARTIN
The attention of the foreign-exchange
market has shifted from an expected
December US rate rise to uncertainty
about the pace of a tightening cycle,
creating volatility in dollar trading.
Neil Mellor, FX analyst at BNY Mellon,
said: “The interest is not when the Fed
moves, but what happens thereafter.”
After rising to a seven-month high
against the euro in the run-up to min-
utes from the Federal Reserve’s October
meeting on Wednesday, the dollar was
sold off in the morning European ses-
sion yesterday.
A similar pattern emerged after the
publication of dovish minutes from the
European Central Bank’s October meet-
ing, which, according to FX strategists,
point to looser monetary policy at the
December meeting. The euro promptly
fell 0.5 per cent against the dollar,
though it recovered to end the European
session up 0.85 per cent to $1.0750.
That left the dollar index, which
tracks the US currency against a basket
of its rivals, still shy of the psychologi-
cally important 100 mark, last touched
in March. Having reached 99.85 after
the Fed minutes, the index was down
0.75 per cent to 98.92.
With the index having risen more
than 5 per cent since mid-October, the
market had priced in monetary diver-
gence, said Mr Mellor.
“The only problem I have with this
divergence is everyone is going the same
way. If this divergence gets traction,
that’s fine. But with this absolutely dom-
inant view, there is a significant possibil-
ity of a market shock.”
Analysts expect the Fed to blend
hawkish commentary about lift-off with
a dovish tone on the cycle. “If, or when,
they lift rates in December, the Fed will
likely be very aggressive in highlighting
the idea of a very gradual pace,” said
Tom Porcelli, chief US economist at RBC
Capital Markets.
According to David Bloom at HSBC, a
shift in rates higher than expected
would add strength to the dollar. “How-
ever, if at any time next year the market
thinks the Fed may need to loosen in
2017, then the dollar will plummet,” he
said. “The risk-reward in 2016 is for a
weaker dollar.”
Nordea warned that investors could
be underestimating the potential speed
of US rate rises. Martin Enlund, analyst,
said the Fed was “trying to signal a hik-
ing path in line with half the pace” of the
cycle in 2004-06. “The market is pric-
ing in half of half.”
Square surges two-thirds from low IPO price
LESLIE HOOK — SAN FRANCISCO
Shares in Jack Dorsey’s Square soared
in the payments company’s first day of
trading, after pricing at an unexpect-
edly low level on Wednesday evening.
In early trading yesterday the shares
peaked at $14.80, almost two-thirds
higher than its $9 IPO price, which had
given a market capitalisation of $3.2bn.
By late morning, the stock was just
above $13, with a greater volume trad-
ing hands than the 27m shares issued.
Square’s advisers — led by Goldman
Sachs, Morgan Stanley and JPMorgan
Chase — had set a price range of $11 to
$13 when they began marketing, against
$15.46 in the most recent private fund-
ing round, in October 2014.
Sarah Friar, chief financial officer,
denied that the company had sold
itself short. “We have the capital we
need to execute the plans in front of
us,” she said.
Had Square priced at the top of its
pricing range, the offering would have
raised an additional $108m.
The share price jump between pricing
and opening was larger than for most US
flotations. Square opened at $11.20 yes-
terday, 24 per cent higher than its offer-
ing price. The US average this year is
13 per cent, according to Dealogic.
Mr Dorsey’s mother opened trading at
the New York Stock Exchange by tap-
ping her watch to a Square payment
reader at a flower stall on the street out-
side, which was connected to the bell
inside the exchange. The stall had been
one of Square’s earliest customers and
its name — Lilybelle — was used as the
code name for the IPO project.
The proceedings were broadcast on
Periscope, the video feed of Twitter, of
which Mr Dorsey is also chief and co-
founder. He splits his time between the
two groups.
The listing has been a harsh test of
investor appetite for lossmaking Silicon
Valley tech companies. Even at its high-
est levels the share price was below the
valuation commanded in the private
markets a year ago.
Square’s first-day pop will be seen as
vindication of Mr Dorsey’s determina-
tion to push ahead at a time when other
tech IPOs have performed poorly.
The surging price also highlights the
increasingly common practice of offer-
ing shares at a low price to generate a
first-day buzz. This benefits investors
who participate in the public offering
directly, because they see their shares
soar immediately, but it comes at a cost
for the company, which raises less
money as a result.
Friday 20 November 2015 ★ FINANCIAL TIMES 29

MARKETS & INVESTING

Global overview
TRADING POST Markets update

Jamie
Chisholm
Stocks unfazed by Fed ‘lift-off’ S&P 500 index
Change on day 0.15%

chatter as the dollar eases back

The general consensus among
analysts and investors after the latest
Federal Reserve minutes is that a
rate rise on December 16 is, all things
remaining equal, even more likely.
Yet the federal funds futures market
appears reluctant to reflect
this growing certainty. At mid-session
yesterday it was still pricing in just a
66 per cent probability of a hike.
Anthony Karydakis, chief economic
strategist at Miller Tabak, says this
presents a trading opportunity. He
places the odds of a pre-Christmas
rate rise in the 85 to 90 per cent range.
“Irrespective though of whether our
call is validated or the federal funds
futures market’s more cautious
approach turns out to be the prudent
approach, we believe that this market
is set up for a potentially sizeable
move over the next three weeks.”
This is because there are two
important events in the first week of
December that may “settle [in either
direction] the outcome of the
upcoming meeting”, he says.
On December 3 Fed chair Janet
Yellen will deliver testimony on the
economy in Congress, and the next
day the jobs report will be published.
Those wanting to bet on a rate rise
next month could go short the
December fed funds future contract
against the August 2016 contract.
The spread — currently about 40
basis points — should tighten as the
December contract falls much more
sharply than the August one, with the
latter’s pullback tempered by the Fed
having stressed that the tightening is
likely to be shallow and slow.
jamie.chisholm@ft.com
Fed funds future spread
Dec 2015 minus Aug 2016
(percentage points)
0.8
0.6
0.4
0.2
Nov 2015 Nov
2014
Source: Bloomberg
Wall Street holds gains,
European bourses rise
and euro firms on
prospects of December
Fed and ECB moves
DAVE SHELLOCK
European stocks rose and Wall Street
held the bulk of the previous session’s
strong gains even as expectations grew
that the Federal Reserve would raise
interest rates next month for the first
time in nearly a decade.
However, the dollar gave back some of
its advance as participants took profits
after the Fed’s Open Market Committee
said that a December move made it
more likely that the policy trajectory
after lift-off would be shallow.
The euro firmed even though the
minutes of the European Central Bank’s
latest policy meeting signalled that fur-
ther policy easing was a strong possibil-
ity next month.
After the Bank of Japan maintained its
pace of asset purchases, the yen also
gained ground versus the US currency.
The softer dollar helped gold snap its
downward trend but industrial com-
modity prices stayed under pressure
from persistent concerns about over-
supply and weakening demand.
By midday in New York, the S&P 500
equity index was down less than 0.1 per
cent at 2,082.6 after climbing 1.6 per
cent on Wednesday.
That left the US equity benchmark
about 2.4 per cent short of the record
intraday high of 2,134.72 reached in
May, after a near-10 per cent rally from
the end of September.
Across the Atlantic, the FTSE
Eurofirst 300 rose 0.4 per cent to
1,502.33, more than recovering the pre-
vious day’s slip but ending well short of
an earlier three-month peak of 1,513.65.
The firmer tone of the yen failed
Fed signals dovish rate rise: FT.com/video
John Authers says markets remain calm as expectations of a
December rate rise were bolstered by the latest Fed minutes
to rein in Japanese equities, and the
Nikkei 225 rose 1.1 per cent to a three-
month high.
Wednesday’s hefty rally for US stocks
came after the minutes of the Fed’s
October meeting offered further signals
that the US central bank was preparing
to raise official borrowing costs at its
meeting on December 15-16, barring
“unanticipated shocks”.
Hans Mikkelsen, credit strategist at
BofA-Merrill Lynch, said: “The market
has spoken — the Fed is free to start
hiking rates in December.”
Energy, materials and financial stocks
had been the best performers since the
day before the conclusion of the October
policy meeting that triggered the sharp
— Andrew Harrer/Bloomberg
rise in market expectations of a Decem-
ber “lift-off”, he added.
“That suggests a belief in the market
that the Fed is going to be able to
start hiking rates in December without
much negative impact on the US econ-
omy, as well as — crucially — without
crushing commodities, oil and the
global economy.”
Joe LaVorgna, chief US economist at
Deutsche Bank, said that the bar for a
December rise was fairly low with
respect to incoming economic data.
“Even though we expect a soft
November non-farm payroll report —
partially the result of payback from
unexpected strength in October — the
Fed appears likely to look through any
2100
2080
2060
2040
2020
Oct 2015 Nov
potential November weakness, empha- US equities Healthcare stocks ran into
sising the cumulative improvement profit-taking after a recent run of gains
over the course of the year as justifica- while the broader market appeared
tion for lift-off,” he said. comfortable with expectations that US
However, interest rate futures stub- interest rates would rise next month
bornly kept the probability of a move
next month priced at 66 per cent, while FTSE 100 index
the yield on the two-year Treasury note Change on day 0.81%
held steady at 0.88 per cent. 6500
In contrast to the Fed minutes, those 6400
from the ECB’s latest policy gathering 6300
“strongly echo the message of numerous 6200
recent speeches by governing council
6100
members signalling further monetary Oct 2015 Nov
stimulus at the next meeting on Decem-
ber 3”, said Capital Economics. UK equities Hefty gains for Johnson
Nevertheless, the euro was up 0.8 per Matthey, CRH and Royal Mail helped
cent against the dollar at $1.0744, and push the FTSE 100 to its highest in a
0.1 per cent higher versus the yen at week, although the index was down
Y131.84, even as the yield on the 3.6 per cent for the year so far
German 10-year government bond fell
3 basis points to 0.48 per cent. Eurofirst 300 index
The dollar was 0.7 per cent weaker
Change on day 0.43%
against the yen at Y122.72, leaving the 1500
dollar index, a measure of the US cur- 1490
rency against a basket of peers, down 0.8 1480
per cent. That helped gold rally $12 to
1470
$1,082 an ounce.
1460
The BoJ kept policy unchanged, main-
Oct 2015 Nov
taining its purchases of government
bonds at Y80tn a year. Its statement European equities Sodexo shares
highlighted the fact that some indica- jumped 9.9 per cent after the catering
tors of inflation expectations had been group gave an encouraging trading
“relatively weak”, although Haruhiko update, helping the Eurofirst 300 hit a
Kuroda, governor, said that there was no three-month intraday high
change to the view that longer-term
price expectations were rising.
Mansoor Mohi-uddin, senior market Nikkei 225 index
strategist at RBS, noted that Mr Kuroda Change on day (’000) 1.07%
20.0
had been similarly dismissive of Octo- 19.5
ber’s weak trade data. “The BoJ thus
19.0
seems unlikely to consider more easing
18.5
until at least April,” he said.
Industrial commodities looked shaky. 18.0
Oct 2015 Nov
Copper touched $4,573 a tonne in
London, the lowest since May 2009, Japanese equities The Nikkei ended
before ending 0.4 per cent up at $4,630. at a three-month high as participants
Zinc and nickel also struck multiyear took heart from a strong overnight
lows, while Brent oil was down 0.3 per advance for Wall Street
cent at $44.03 a barrel.

G4S rather than the profit warning many

London
Virgin Money slips
on worries of BoE
buy-to-let clampdown
Bryce Elder
Fears of a clampdown on risky lending
put challenger banks such as Virgin
Money under pressure yesterday.
Merrill Lynch turned cautious on the
fledgling lenders in a sector review.
With the Bank of England likely to put
off its first interest rate increase until
mid-2017, it needed to tame buy-to-let
mortgage lending and unsecured credit
by other measures, Merrill said.
The BoE’s next financial stability
review on December 1 was likely to
introduce underwriting caps and might
include more draconian measures to
cool the market, Merrill argued.
One option, it said, would be to insist
that banks put higher risk weightings on
consumer debt such as by treating buy-
to-let mortgages as commercial rather
than residential lending.
“Whilst it is unclear what actions the
investors had feared. Trading Directory
Share price (pence)
300 G4S dropped 2.9 per cent to 225.8p, a
280 two-year low. JPMorgan Cazenove said
260 it was cutting earnings forecasts for G4S
240 having hosted a “fireside chat” with
220 Himanshu Raja, the security group’s
Nov
2014
2015
Source: Thomson Reuters Datastream
Nov chief finance officer.
Emerging market growth had
Day's
weakened since G4S last updated the
Indices
FTSE 100
Close
6329.93
change
50.96
market with interim results in August,
JPMorgan said. “Management expects
FTSE 250 17144.72 55.63 growth at the 4 per cent level for the
FTSE 350 3524.59 25.42 year,” it told clients. “At the time of the
FTSE All-Share 3471.04 24.43 first-half results, management had
FTSE All-Share Yield 3.68 - thought that second-half growth could
FTSE 100 Futures 6335.50 60.00 trend towards 5 per cent but emerging
10 yr Gilt Yield 2.53 -0.29 markets (circa 40 per cent of revenue)
20yr Gilt All-Share Ratio 0.70 -
have slowed a bit, especially due to
commodity softness.”
BoE might take, the direction of travel Housebuilders drifted after Bovis
seems apparent,” Merrill told clients. Homes warned on profit margins,
“Those banks relying most on buy-to-let blaming cost inflation and planning
and consumer credit are likely to see the delays on its high margin sites.
costs of growth increase. These costs Bovis fell 8.6 per cent to 904p,
may crystallise in higher capital Berkeley lost 1.5 per cent to £30.93
requirements or less revenues. Neither and Persimmon was down 1.3 per cent
is appealing.” to £18.40.
Virgin Money, down 5.6 per cent to Poundland tumbled 20.1 per cent to
353p, faces the sector’s biggest hit to its 222.7p on a profit warning, caused in
capital buffers, said Merrill. part by the acquisition of 99p Stores.
It advised selling Aldermore, down Stretched finances at the lossmaking
5.3 per cent to 262.3p, and landlord chain had led to a withdrawal of credit
mortgage specialist Paragon, which insurance, which compounded
slipped 4.5 per cent to 402.5p. “volatile” trading conditions,
A wider rally lifted the FTSE 100 by Poundland said.
0.8 per cent, or 50.96 points, to 6,329.93. Ophir Energy fell 6.6 per cent to 90.6p
Leading the gainers, Johnson after it said an exploration well in the
Matthey rallied 9.6 per cent to £26.94 Gulf of Thailand was below commercial
after the auto catalyst maker’s interim quality, so had been plugged and
results came with a special dividend abandoned.

Wall Street
Best Buy suffers after
sales power down
Adam Samson
Best Buy shares fell after the electronics
retailer offered a cautious outlook for
the holiday shopping season.
The retailer said it expected fiscal
fourth-quarter revenue growth to be
nearly flat, reflecting weakness in the
consumer electronics retailing industry.
Indeed, sales in the fiscal third
quarter, which ended on October 31, fell
2.4 per cent from the year before to
$8.82bn. That missed Wall Street
expectations of $8.83bn.
The news is yet another sign of the
uneven performance of retailers. Macy’s
and Nordstrom, both department store
chains, issued gloomy outlooks last
week. However, Home Depot, the
biggest US home improvement retailer,
on Tuesday revealed better than
expected quarterly results.
Best Buy’s shares fell 2.8 per cent in
midday trading to $30.44, widening its
loss this year to 20.9 per cent.
Elsewhere, UnitedHealth cut its full-
year profit outlook as its involvement in
US public insurance exchanges weighs
on its business. The biggest US health
insurer added that it might abandon the
marketplaces, an important component
of Barack Obama’s signature healthcare
law. UnitedHealth’s shares skidded
4.3 per cent to $112.17, knocking its gain
this year to 10.9 per cent.
Anthem, another insurer, dropped
6.7 per cent to $128.04. HCA Holdings,
an operator of hospitals, dropped
5.2 per cent to $66.53.
On the other side of the ledger, Keurig
Green Mountain shares zoomed into the
black. The maker of single-serve coffee
pods and brewers revealed stronger-
than-expected adjusted quarterly
profits after the closing bell on
Wednesday. Sales narrowly topped Wall
Street expectations. The shares shot up
25.7 per cent, but were still down more
than 60 per cent for the year.
Also in the black was Valeant, the
struggling speciality pharmaceutical
company. Its debt was initiated at
“overweight” by Citigroup. It rallied
8.1 per cent to $78.55, helping narrow
year-to-date loss to 45.1 per cent.
Match Group and Square both made
public-market debuts. Match, parent
of dating app Tinder, popped 13.3 per
cent to $13.59, after pricing at the lower
end of its expected range. Square, a
mobile payment company run by
Twitter chief Jack Dorsey, climbed
44.6 per cent to $13.01, after pricing
below its projected range.
In midday trading the S&P 500 was
down 0.1 per cent to 2,082.6, the Dow
Jones Industrial Average had dipped
0.1 per cent to 17,720.66 and the
technology-heavy Nasdaq Composite
was a touch firmer at 5,079.84.
30 ★ Friday 20 November 2015

INSIGHT Analysis. Capital markets

Jennifer
Hughes
Reverse Yankees settle into Europe’s bond scene
Rates divergence favours the Here to stay?
trend for foreign companies
Adding renminbi to being the biggest euro issuers
Reverse Yankees: euro-denominated corporate bonds
Europe US Rest of world

IMF currency basket GAVIN JACKSON

2014
Total €318.45bn 2015 (Year-to-date)
is more than symbolic Among fearsome warriors and cute ani-
mals — the Japanese samurai, the Chi-
2013
Total €282.12bn
Total €297.85bn

nese panda and the Australian kangaroo

— is the reverse Yankee, the European
€258.8bn
€229.1bn €201.7bn

B
ack in 2009 the west was desperately seeking market for foreign issuers, which has
green shoots of recovery and paid little atten- stood out this year despite its prosaic
tion when Zhou Xiaochuan called for nothing name.
less than a new world financial order. The reason US companies are selling
China’s central bank governor proposed so many euro-denominated bonds
replacing the US dollar as the international reserve cur- relates to diverging monetary policy on
rency with a global system controlled by the International either side of the Atlantic.
Monetary Fund. If, as expected, the IMF this month The European Central Bank’s quanti-
approves the inclusion of the renminbi as a reserve cur- tative easing programme has pulled
rency, it will mark a small step for Mr Zhou’s 2009 vision eurozone bond yields down to historic
but a big move for the renminbi. lows, while the US Federal Reserve may
The prospect of China’s currency joining the dollar, euro, finally shift borrowing costs higher as
yen and sterling in backing the IMF’s Special Drawing soon as next month.
Rights — its unit of account, restricted to member govern- With US yields well above those in the €63.2bn
€633.2bn
€63.22bn €33bn
ments — has been described as everything from a symbolic
ego trip on the part of Beijing to the dawning of a new era.
eurozone, a range of blue-chip compa-
nies have sold reverse Yankees to lock in
€32.5bn
€32.5bn
€32.5bn
n €20.5bn €38.6bn
€38.6b
€3
38.6bn
n €21bn
In all probability it will be like many Chinese financial lower borrowing costs. FT graphic Source: Dealogic
reforms: significant in hindsight, but hard to get excited Not only does the outlook for the debt
about in the short term. sales remain robust because of growing
Market enthusiasm for early-stage reforms such as divergence between US and eurozone ‘US issuers, kees of €38bn, according to Dealogic. “The euro market is nowhere near as Investment. “Maybe the knowledge
de-pegging the renminbi 10 years ago has given way to interest rates, but a new driver looms in Bond sales have come not just from competitive for US issuers doing a euro base or research base or mandate makes
ennui as the changes get smaller and China gets bigger. The the form of mergers and acquisitions. even the US companies. The total raised by Chi- deal as it was at the start of the year,” them more difficult to find a home.”
result is often disappointment in the numbers as China “The estimated M&A refinancing lesser-known nese borrowers has climbed to €9bn says Frazer Ross of the global risk syndi- Many European funds have to invest
maintains an antipathy to the sweeping changes, accom- pipeline is sizeable, and you could argue names, have from nothing last year. Companies that cate desk at Deutsche Bank. in European companies, he adds.
panied by headline-grabbing figures, beloved of newly that not all of those deals can be done in are neither European nor US account Many issuers next year are likely to be Worries over market liquidity may
installed western executives and politicians. the dollar market,” says Marco Baldini, experienced for 11 per cent of sales, compared with 7 global companies seeking a natural off- also result in eurozone investors seeking
Even the Shanghai-Hong Kong Stock Connect, a year old head of the European corporate syndi- earnings per cent for all of 2014. set of their euro revenues. to be compensated for the added diffi-
this week, was shrugged aside by many, because the abso- cate at Barclays. “It is fair to expect this volatility Much of this flow reflects an arbitrage “In 2015 all US issuers, even the culty of selling the bonds if they need to
lute numbers involved are rel- trend to continue.” opportunity, with companies locking in lesser-known names, have experienced get out, he says. They will demand a “lit-
atively small. However, its Cheaper financing in euros can make due to the a low European rate and swapping euro earnings volatility due to the stronger tle bit more premium”.
real significance lies in the fact
Ramifications of the return on US-based M&A work, as strong dollar’ proceeds back into dollars. Currency US dollar,” says Mr Ross. “Many issuers But other investors welcome the
that it was the first scheme SDR inclusion can the sheer size of deals — including swaps allow businesses, for a fee, to with operations in Europe want to build diversification and say the only problem
under which foreign investors the AB InBev-SABMiller megamerger — transfer coupon and principal pay- a presence in the European debt mar- comes if borrowers favour one currency
had been allowed in “blind”
come from that need refinancing. Other foreign ments into their own currency, limiting kets commensurate with their presence too much, creating indigestion as fund
— without requiring individ- its effect on companies buying European assets will the risk of adverse moves. on the ground to offset this volatility.” managers struggle to get enough capital.
ual approval. also need to tap the debt market. But this has changed. The cost of One note of caution on the reverse The trend is unlikely to go away soon.
SDR inclusion risks being
financial reform This year foreign groups have been swapping liabilities from euros to dol- Yankee boom extending into 2016 So long as the economic cycles of the US
categorised the same way. the biggest issuers of euro-denominated lars has climbed to 46 basis points — the relates to the eurozone investor base. and the eurozone are out of sync and
That would miss the point. It is not about boosting short- corporate bonds, with a 21.3 per cent highest for three years — as expecta- “Sometimes there isn’t a natural buyer interest rates plot divergent paths, com-
term demand from central banks for renminbi. Rather it is share. They have issued €63bn, easily tions that the Fed will tighten policy in for reverse Yankees,” says Mitch panies will have an incentive to come to
about embedding the currency in the international system eclipsing the 2014 total for reverse Yan- December increased. Reznick, co-head of credit at Hermes the European market.
and committing Beijing to financial reform.
If China were to constitute up to 10 per cent of the
SDR basket, reserve managers would need to buy just
$28bn of its currency — not a particularly meaningful Commodities
number compared with the $20bn traded daily in the
onshore spot market.
Reserve figures are thus another source of headline
number dismay. If China were to make up 3 per cent of the
Saudi Arabia seeks to
$11.5tn of reserves held globally by the end of 2016, as fore-
cast by DBS economist Nathan Chow, that $340bn would
quell oil supply fears
vault the renminbi into the top league alongside sterling
and the yen. Yet the dollar makes up almost two-thirds of
reserves, and the euro 20 per cent. ANJLI RAVAL — BAHRAIN A conference poll showed
Numbers aside, the big ramifications of SDR inclusion more than 90 per cent of
come from its effect on financial reform. Xiangrong Yu, Saudi Arabia and its Gulf attendees do not expect oil
economist at CICC, likens it to the impact of China joining Opec allies have lined up to prices to rise significantly
the World Trade Organisation in 2002. “Even if the ren- try to quell fears of a pro- next year, with a quarter
minbi fails to be added this time around, it will be impossi- longed supply glut in the oil expecting them to stay at
ble to reverse these reform measures,” he adds. market, warning of short- current levels or lower.
Changes so far include the scrapping in July of the need ages in the sector if invest- Just 7 per cent saw the
for central banks and other sovereign-linked players to ments fall further. prices trading back above
gain approval to invest in onshore bond markets. After all, A year after the de facto lead- $70 a barrel, the level many
reserve managers that want to add renminbi, however ers of Opec opened the taps major oil-producing coun-
slowly they do so, will need assets to buy. And China likes to squeeze high-cost rivals, tries need to get closer to bal-
and needs long-term, steady investors. they are struggling to reas- ancing their budgets.
There are also the efforts to allow the currency to trade sure cash-strapped members “Nobody expected the oil
more in line with market movements — a goal of the mis- of the cartel that the strategy price to go this low and it can-
handled August devaluation. The gap between onshore is working. not stay here,” said Ahmed
and offshore renminbi rates has risen recently, suggesting Prices are languishing near Ali Al Sharyan, secretary-
less response by the People’s Bank of China to what the $40 a barrel and showing lit- general at Bahrain’s National
market, via the offshore rate, is implying. tle sign of recovering, despite Oil and Gas Authority.
This, however, could be a function of the SDR campaign major oil companies slashing Saudi Arabia has said it
itself. After acceptance has been gained, pressure for billions of dollars in invest- will not cut production when
a stronger currency should fade, paving the way for a ment already this year. Opec members such as Iraq
drift lower. At a conference in Bahrain and Iran are raising or pre-
For short-term investors the main outcome of inclusion yesterday, Ali al-Naimi, paring to raise output.
could be greater uncertainty. For longer-term thinkers, it Saudi Arabia’s oil minister, The view is that in the
is possibly worth returning to Deng Xiaoping’s maxim told oil executives the world long-run Opec will win back
describing China’s method of progress as “crossing the must continue ploughing customers, with US shale oil
river by feeling the stones”. Investors sometimes need to money into projects to guar- expected to decline next year
count the stones felt and passed so far. There are more antee the “stability” of the after more than half a decade
of them than the numbers involved suggest. market in the long run. of robust growth. Prices may
“Demand for oil is continu- even shoot higher eventually
jennifer.hughes@ft.com ing to rise,” he said, predict- if investment is cut too far.
ing growth would rise at 1m United Arab Emirates
barrels a day, a faster pace energy ministry undersecre-
than earlier this decade. tary Matar Hamed Al Neyadi
Mr al-Naimi said $700bn said yesterday that he still
in investment would be believed Opec’s policy was
More comment and data on ft.com needed in the next decade “the right one”.
to “provide a surplus to He added: “Yes there is
guarantee the security of some pain. But we believe
Y Fast FT Our global economies, headed the market”. from next year the market
team gives you market- by Brazil, Russia, India But his remarks show he is will change itself and we
moving news and views, and China. still trying to win over a scep- could see some improve-
24 hours a day, five days ft.com/beyondbrics tical market that adopted the ment in the price.”
a week. ft.com/fastft mantra of “lower for longer”. In the meantime, the mar-
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a On December 4 Opec ket is increasingly saturated.
irreverent financial blog. look at what is driving meets in Vienna, and Vene- The International Energy
Join Paul Murphy and the global currency zuela and other economi- Agency said last week oil
Bryce Elder for the daily market. ft.com/podcasts cally weak Opec members inventories have hit record
Markets Live session at are expected to lobby for levels, approaching 3bn bar-
Y Lex Video Analysis a return to production rels in developed countries —
11am. ft.com/alphaville
and opinion from the cuts to bolster the price, the equivalent of a month’s
Y beyondbrics News and team on the hot issues which is on course this year global demand.
comment from more affecting companies and to average its lowest since Additional reporting by
than 40 emerging markets. ft.com/lexvideo 2005. Few are confident of a David Sheppard and Neil Hume
speedy recovery. in London
 FT SPECIAL REPORT

Doing Business in China

Friday November 20 2015 www.ft.com/reports | @ftreports

Inside

Beijing’s Legacy of economic

stimulus is mixed
Heavy debt burden

economic weighs on balance

sheets
Page 2

‘One Belt, One Road’

competence An investment initiative

that has been greeted
with confusion and
caution
Page 3

questioned ‘Dawn raid’ drills may

be needed
Foreign companies are
confronting a broader
array of regulatory risks
Page 3

Expatriates
Leadership under pressure as growth continues to The number of
grind down and debt piles up, says Jamil Anderlini Seeking change: Xi Jinping, China’s president, visits an advanced technology factory in the Fujian province — Xinhua/Alamy foreigners arriving
on lavish corporate

F
or more than two decades the
Chinese Communist party
has offered the masses an
unwritten social contract — we
will manage the country and
allow you to get rich, as long as you stay
out of politics.
Rapidly rising living standards and a
bureaucracy that was remarkably suc-
cessful at achieving high rates of growth
left most ordinary citizens convinced
this was a pretty good deal.
Most foreign investors in the country
have been similarly impressed by the
competence of Chinese technocrats and
their ability to manage an increasingly
complex economy that is now the
world’s largest, at least in purchasing
power terms.
But a stock market crash and a series
of policy mis-steps over the summer
have left many investors questioning
their faith in the infallibility of the man-
darins in Beijing.
Meanwhile, the relentless slowdown
in the broader Chinese economy that
has been under way for the last few
years appears to be worsening, and
deep-seated problems in the real estate,
manufacturing and financial sectors are
becoming more acute.
As recently as two years ago, many
Chinese officials were still confidently
predicting that the economy would con-
tinue to expand at a steady rate of 8 per
cent for at least two more decades.
But China will grow at its slowest
annual pace in a quarter of a century
this year as the Communist Party strug-
gles to achieve its full-year target of
“around 7 per cent” growth in GDP.
According to official statistics, the econ-
omy expanded 6.9 per cent in the third
quarter from a year earlier, after grow-
ing by 7 per cent in the first half.
Tao Wang, the chief China economist
at UBS, predicts growth will slow to 6.2
per cent next year and 5.8 per cent in
2017.
“Downside risks [to these forecasts]
will probably come mainly from a
deeper and more prolonged property
destocking process and a greater
knock-on effect on the industrial sector,
and to a lesser extent, from insufficient
policy support to temper the down-
turn,” she says. “Either could aggravate
the negative feedback loop in weak real
activity, worsening deflationary pres-
sures and increasing debt burdens; all
against a backdrop of higher capital out-
flows and financial market volatility.”
Investors are unlikely to see any relief
from China’s enormous export sector,
which is struggling with weak global
demand, rising environmental and
labour costs and a strengthening ren-
minbi.
At the start of 2015, the government
set a target of 6 per cent expansion in
total trade, but in the first 10 months
of the year China’s trade with the
rest of the world shrank 8 per cent from
the same period a year earlier.
Woes in the export sector were one
reason for the Chinese government’s
decision to devalue the renminbi on
August 11, according to people familiar packages is declining
with the matter. But the shocked reac- Page 4
tion of global markets and the abrupt
volte-face that followed that decision
probably did more to harm Chinese
leaders’ reputation for economic com-
petence than anything else.
“The devaluation was clearly a policy
mis-step,” says Derek Scissors, a resi-
dent scholar at the American Enterprise
Institute in Washington DC. “It seems
they were completely oblivious to the
downside risk and how the rest of the
world would react.” Corporate reinvention
In fact, global investors had already
been losing confidence in the Chinese A company in business
authorities for some time. for more than 100 years
Continued on page 2 Page 4

Ecommerce offers a cheaper

and faster way to market
Online
Charles Clover discovers
companies so powerful that
for all intents and purposes
they have become the
‘ministry of the internet’
On November 11, Todd Fryhover, presi-
dent of the Washington Apple Commis-
sion, joined China’s Singles Day celebra-
tion for the first time, hoping to sell 1.2m
apples from Washington State in 24
hours.
To help him out was the marketing
juggernaut of Alibaba, the Chinese
ecommerce company, where Washing-
ton apples are sold through branded
website Tmall, one of a number of for-
eign food brands that are finding a ready
market in China amid health scares over
domestic produce.
Singles Day, which began as a student
celebration of singledom in the early
1990s, was reinvented by Alibaba in
2009 as a mass festival of conspicuous
consumption, and more and more for-
eign companies are joining, hoping to
use the holiday as a marketing exercise
to get their brands out to the Chinese
public.
Mr Fryhover wants everyone in China
to have “a repeatable, wonderful experi-
ence on Washington apples”. China is
number six on the list of 60 countries
that import apples from Washington’s
450 growers, but he thinks it will be
number one by next year.
He may be right. By midnight, as a
video billboard in Alibaba’s Beijing
auditorium showed, $14.3bn of mer-
chandise had been bought via Alibaba’s
platforms in 24 hours.
Western companies are increasingly
turning to online commerce, a cheaper
and faster way to get to market than set-
ting up store chains or penetrating the
opaque retail market in China.
To do this they are learning to love
China’s internet conglomerates, infor-
mally known as BAT — Baidu, the search
company, Alibaba and Tencent, the
social media and gaming company. The
three have begun to dominate economic
life in China with amazing speed, doing
everything from retail to finance to
transportation, and moving into health-
care and even agriculture.
In just a few years, the BAT conglom-
Core customers: Jack Ma of Alibaba
erates has been able to monopolise
every aspect of daily life that could con-
ceivably be put on the web and sold to
the public. “They all want to own the
customer, they want to be with them
every second of the day, when they
watch a video, chat to their friends, buy
groceries, or go to a restaurant” says
Chris DeAngelis from the Beijing-based
Alliance Development Group.
China’s internet giants are becoming
what analyst Anne Stevenson-Yang of
J Capital Research calls “tech Keiretsu”,
referring to the national champions that
‘China in many ways is more
switched on to the internet
than other countries which
have had it for longer’
dominated the Japanese economy in the
20th century with interests in multiple
industries. “When companies are this
big in China, the difference between
public and private is not that impor-
tant,” she says. “For all intents and pur-
poses these companies have become the
ministry of the internet.”
But fierce competition means foreign
sellers have many options for courting
Chinese middle class buyers who are
looking to buy imported goods abroad
due to concerns about home-made
counterfeit goods.
Alibaba offers a number of options for
sellers, including the free eBay-like plat-
form Taobao, which is basically an
online flea market. Most big brands set
up on Tmall, which resembles an Ama-
zon market place, a platform where big
brands can set up stores and have more
control over their sales and supply
chains. Tmall’s first store from a fortune
500 company was Procter & Gamble,
launched in 2008, which has grown 100
times since then, according to P&G vice-
president Jasmine Xu.
This year on Singles Day Ms Xu says
that P&G made its first Rmb100m
($16m) in six minutes, compared with
eight hours last year. “[Tmall] is a key
platform to drive brand building in
addition to sales,” she says.
Some merchants have been loath to
list on Alibaba, however. It gets vast
online traffic, but the pressure to dis-
count and the prevalence of fakes
means it is “hard to protect a brand on
Tmall,” says one consultant.
But there are plenty of alternatives.
JD.com, Alibaba’s rival, which is increas-
ing its market share, has attracted a
number of brands to its online store.
Meanwhile, waiting in the wings is
Tencent’s social media app WeChat,
which has more than 500m users and is
growing rapidly. Fearful of flooding the
app with advertising and products, Ten-
cent has been holding back on “mone-
tising” WeChat.
But advertising on WeChat is just one
way of getting attention, and many com-
panies have found they can win huge
marketing success simply by using
WeChat for word-of-mouth marketing.
Fans of English country living, for
example, can join a WeChat group
devoted to Aga cookers, the iconic Eng-
lish oven brand, watch videos about
cooking on an Aga, swap messages
about it, and, thanks to the software
which embeds the store in the chat-
room, even buy one on impulse.
“WeChat is unusually versatile; its
better than Facebook, better than
WhatsApp for marketing,” says Jim
James, head of EastWest Public Rela-
tions in Beijing, which designed the Aga
WeChat group.
“China in many ways is more
switched on to the internet than other
countries which have had it for longer.”
2 ★ FINANCIAL TIMES Friday 20 November 2015

Doing Business in China

‘It is just like

the left hand
borrowing from
the right hand’
Debt Gabriel Wildau says the legacy of the
government’s economic stimulus plan is mixed

W
hen China's cabinet
announced a Rmb4tn
economic stimulus at
the height of the global
financial crisis in
November 2008, the plan was widely
praised as a vital contribution to sup-
porting the world economy.
Seven years later, the legacy of that
programme is decidedly mixed. The
burst of spending on infrastructure and
new manufacturing capacity propelled
the economy to 9.8 per cent average
annual GDP growth in 2009-2011 and
also buoyed the economies of resource
exporters such as Australia and Brazil
by boosting demand for industrial com-
modities.
But the stimulus also led to a vast
increase in debt. McKinsey, the business
consultancy, estimates that total debt —
including the household, corporate,
financial and government sectors —
quadrupled from $7.4tn at the end of
2007 to $28.2tn by mid-2014. As a share
of GDP, Chinese debt rose from 158 per
cent to 282 per cent in the same period.
Most analysts do not believe China
will suffer an acute debt crisis. Instead,
the fear is of a Japan-style scenario in
which state-owned banks roll over
unpaid debts to unprofitable “zombie”
companies in a strategy of “extend and
pretend”. As corporate cash flows are
increasingly used to service old debts,
growth will suffer as less money is avail-
able to finance new investment.
“The majority of debt in China is owed
by state-owned enterprises (SOEs) and
local governments to state-owned
banks. In other words, they are more
like the left hand of the government bor-
rowing from the right hand of the gov-
ernment,” Larry Hu, China economist at
Macquarie Securities, wrote in October.
“What concerns us most is not an immi-
nent debt crisis but lower long-term
growth.”
China's leadership has taken a series
of steps over the past year to bring debt
under control. The most important has
been the creation of a municipal bond
market.
During the stimulus period, local gov-
ernments borrowed heavily through
special-purpose investment vehicles to
circumvent a legal ban on local borrow-
ing. Last year, in an effort to “close the
back door and open the front door”, the
government eliminated this ban and
allowed provinces to issue bonds
directly. The finance ministry sets debt
quotas for each province, limiting the
total amount of new debt.
The ministry is also allowing prov-
inces to refinance bank loans to special
purpose investment vehicles (SPVs)
with municipal bonds. Lower interest
rates on bonds compared with loans will
reduce the burden of servicing debt for
local governments.
In addition to the run-up in borrow-
ing, China’s debt problems are com-
pounded by falling prices, particularly
in the manufacturing sector. Deflation
increases the real burden of servicing
Troubled times: debts as companies struggle to repay
the People’s debts fixed in nominal terms even as
Bank of China in their revenues decrease.
Beijing “Debt-deflation trap is a big macro
AFP
risk,” Tao Wang, China economist at
UBS, wrote in early November. “Declin-
ing prices, a heavy debt burden and still-
high interest rates will likely weigh on
corporate balance sheets, undermining
their debt servicing capacity and invest-
ment demand and worsening banks'
asset quality.”
To deal with this problem, economists
expect China’s central bank to continue
loosening monetary policy, which
should boost inflation and lower debt
servicing costs.
Ms Wang also believes that corporate
restructuring — including liquidation of
excess manufacturing capacity — as well
as monetary easing is necessary to
reverse deflationary trends. But that is
politically difficult. Local governments
have traditionally resisted the closure of
unproductive factories because it
involves both the laying off of workers
and sacrificing tax revenue.
Reducing the flow of new debt, lower-
ing debt service costs and boosting infla-
tion are all necessary to address China's
debt challenge, but they are not suffi-
cient, analysts say. The final piece of the
puzzle is accepting that some debt can-
not be repaid. That means greater toler-
ance of defaults and write-offs.
For years, China’s government — fear-
ing the impact of default on financial
stability and economic confidence — has
used bailouts and debt rollovers to pre-
vent this scenario, especially for state-
owned enterprises where debt problems
are most severe.
Yet even the government’s considera-
ble fiscal resources are not sufficient to
bail out all the debt that is expected to
sour in the coming years as China’s
economy slows. Rating agency Fitch
believes the government’s tolerance for
default, including by SOEs, will increase
in the coming years, but only modestly.
“The agency expects defaults by SOEs
to become less uncommon in China's
corporate bond market, but still spo-
radic and isolated, as controlling sys-
‘Declining temic risk remains a top priority for the
prices, a Chinese government while the economy
remains soft,” Fitch said in a report.
heavy debt The rise in defaults is also leading to
burden and opportunities for distressed debt inves-
tors. Foreign debt investors played a
still-high modest role in China’s last round of
interest large-scale debt restructuring in the late
1990s and early 2000s, when state-
rates will owned banks offloaded trillions of ren-
likely minbi in bad loans from their balance
sheets in preparation for stock market
weigh on listings.
corporate So far, there is little evidence that for-
eign investors will be welcome this
balance time round, given the political sensitiv-
sheets’ ity of selling off state-owned assets to
foreigners.

Economic competence questioned

Continued from page 1
Around the middle of 2014 it became
clear that the government had decided
to encourage speculation in the coun-
try’s vast, but poorly regulated, equity
market. By attaching its imprimatur to
a bubble the government believed it
could engineer a giant debt-for-equity
swap as companies sold shares to pay off
some of the crushing debt that was
harder to service as growth slowed.
As the benchmark Shanghai index
soared in early 2015 the People’s Daily,
the official mouthpiece of the Commu-
nist Party, crowed in a front page
editorial that this was only the start of a
multiyear bull market. But barely two
months later the bubble burst and
prices of equities, that had been driven
upwards by a flood of newly sanctioned
margin trading, started to plummet.
Beijing’s knee jerk reaction was a
massive state-sponsored rescue effort to
buy stocks and stop the price falls.
When that did not work the government
banned large shareholders from selling
any stocks. The market kept falling and
eventually the “national team” of state-
backed stock-buying funds abandoned
their attempts to prop up prices — but
not before they had spent more than
$200bn trying to support the market.
“This was a huge hit to the govern-
ment’s credibility and it just got worse
with the failed devaluation attempt,”
said one market participant with close
ties to top financial regulators.
On August 11, the day the People’s
Bank of China — China’s central bank —
announced its devaluation, several of
the PBOC’s most senior officials were on
holiday and had to be recalled, accord-
ing to several people with knowledge of
the matter. These people said the PBOC
had proposed the move as just one pos-
sible policy option and did not expect
the central leadership to adopt it so
promptly. At first glance the announce-
ment appeared to be a master stroke.
In addition to a small “one-off” deval-
uation of less than 1 per cent against the
US dollar, the PBOC also said it would
now allow the market to play a much
bigger role in setting the exchange rate
— a reform the IMF and many other
institutions had been urging for years.
That meant Beijing could devalue the
currency to help struggling exporters
while also appearing to be complying
with IMF demands. Theoretically, this
would not lead to competitive devalua-
tions from other countries and China
would not be accused of following a
mercantilist policy. Over the next few
days investors pushed the value of the
renminbi down by close to 5 per cent, as
Beijing had hoped.
But outside China’s borders global
markets and regional Asian currencies
were collapsing as investors worried
about a currency war amid fears the
‘As investment and GDP
growth continue to slow,
employment and wage
growth may soften further’
Chinese economy was in much worse
trouble than anyone had thought.
Within days the PBOC reversed itself
and announced it was heavily interven-
ing in the market, essentially to re-peg
the renminbi to the dollar to try to calm
panicky markets and trading partners.
“The government was very surprised by
the strength of the international reac-
tion,” said one senior adviser to the Chi-
nese leadership. “But once it feels it has
sufficiently stabilised the market then
we will see some more devaluation.”
If this prediction is correct it will have
a vast impact on global companies and
investors operating in or coming to
China.
For years, the ever-rising value of the
renminbi was as certain and stable as
the Communist Party’s social contract
with its citizens and that meant a one-
way bet and an extra attraction for for-
eign investors pouring into renminbi
assets.
Investors looking for a bright spot in
China have pointed to resilience in con-
sumption and service sectors, which
have held up even as growth in invest-
ment, construction, manufacturing and
heavy industries has plummeted. The
government has encouraged this opti-
mism by pledging to shift the Chinese
growth model from investment and
construction to consumption and serv-
ices.
But in unpublished recent remarks to
visiting foreign dignitaries, even China’s
outspoken finance minister, Lou Jiwei,
forecast four or five years of much lower
growth as the economy digests massive
industrial overcapacity, as well as exces-
sive debt levels that are still rising. He
also warned that he expects “labour
pains” as unemployment rises.
“Although employment and con-
sumption have stayed resilient so far, we
expect both to face increasing head-
winds in 2016 and 2017,” says Ms Wang.
“Going forward, as investment and GDP
growth continue to slow, employment
and wage growth may soften further.”
As growth slows and debt piles up the
government’s unwritten contract with
the masses — and with global investors
— is looking increasingly strained.

Contributors
Jamil Anderlini Erick Robinson Andy Mears
Beijing bureau chief Beijing-based partner at Rouse, an Picture editor
international law firm
Charles Clover For advertising details, contact
Tom Mitchell Chris Campbell Olivia Hu on 00 86 21 6375 9222 ext. 121
Lucy Hornby Graphic artist or olivia.hu@ftchinese.com,
Beijing correspondents or your usual FT representative.
Valentina Romei
Ben Bland Statistics journalist All editorial content in this report is
South China correspondent produced by the FT.
Aban Contractor Our advertisers have no influence over or
Gabriel Wildau Commissioning editor prior sight of the articles.
Patti Waldmeir
Shanghai correspondents Steven Bird All FT Reports are available at:
Designer ft.com/reports
Follow us on Twitter @ftreports
Friday 20 November 2015 ★ FINANCIAL TIMES 3

Doing Business in China

‘One Belt One Road’ plan greeted with caution

Investment So far there is little indication of where the money from the country’s development initiative might flow, or how to tap into it, reports Lucy Hornby

N
o Chinese initiative has
been lapped up so eagerly
since Chairman Mao’s Little
Red Book inspired millions
across the globe in the
1960s. This time the proponents of the
“One Belt, One Road” slogan are not
young idealists but suit-clad and nor-
mally more sobersided politicians, bank
analysts and economists.
One Belt, One Road is a Chinese for-
eign policy initiative promoted by presi-
dent Xi Jinping and sometimes known
as China’s answer to the Marshall Plan
(although Beijing rejects that analogy).
The numbers are impressive: $40bn
from the new Silk Road Fund, to sup-
port private investment; not to mention
the lion’s share of the expected $100bn
to be dispersed from the new China-led
Asian Infrastructure Investment Bank
(AIIB).
So far there is little indication of
where the money might flow, or how to
tap it.
The confusion starts with the name
itself. One Belt refers to what was histor-
ically called the Silk Road, stretching
from China through central Asia. One
Road refers to a “maritime road” which
more or less draws inspiration from the
voyages through Southeast Asia to the
east coast of Africa by Zheng He, the
eunuch admiral of the Ming Dynasty.
Rather than being limited to China’s
near neighbours in central and South-
east Asia, One Belt, One Road is geo-
graphically elastic.
“Some people say there are only 65
countries involved but that’s a misun-
derstanding,” says Zhao Changhui, chief
risk analyst at China Export-Import
Bank and an enthusiastic proponent of
the concept. “It’s a new method of devel-
opment for China and the world.”
In the absence of concrete plans,
international enthusiasts are left to fill
in the blanks.
George Osborne, the UK chancellor
believes One Belt, One Road invest-
ments will dovetail nicely with his
promise to develop the north of Eng-
land. In September he visited ethnically
divided Xinjiang on China’s borders
with central Asia to evoke the Silk Road.
China in numbers
Chinese GDP per capita is However, bureaucracy continues China’s debt rises fast, higher than The student population is now
approaching that of the US ... to be among the most problematic in some advanced countries 12% smaller than in 2003
GDP per capita at purchasing power parity $, % of US factors for business ... Debt to GDP ratio Million of enrolled students
Forecast Survey of executives, 2015 Postgraduate
300
30 Rank (0 = least problematic) Higher Institution
0 2 4 6 8 10 12 250
China
20 Insufficient capacity to innovate 200 200
Indonesia Access to financing 150
10 Inefficient government bureaucracy
Inadequate supply of infrastructure 100
Tax rates
India 50 Secondary School
0 Corruption 150
Policy instability 0
1980 90 2000 10 15 20 Tax regulation complexity 2000 2007 2014 (Q2)
... and it’s becoming more ... with China’s perceived as more
Household Government Financial Non-financial
business-friendly Starting a business corrupt than other Asia countries institutions corporate 100
Days to do each task Registering property Global corruption perception index, 2014
Debt to GDP ratio, Q2 2014
800 1 (least corrupt) 174 (most corrupt)
300
Paying taxes Primary School
600 Hong 250
Kong China 50
Securing 17 100 200
construction 400 150
permits
200 100
50
India, Philippines 0
0 Thailand, Sri Lanka 0
2003 05 10 15 85 China US Germany 1980 85 90 95 2000 05 10 14
FT graphic Sources: IMF; World Bank Ease of Doing Business; World Economic Forum; Transparency International; McKinsey; CEIC
While there, he announced £60m of World Bank in Beijing, also views the were signed during an April visit by projects, when they are finally detailed,
investment into real estate projects in potential whole as greater than the sum President Xi, and a steel mill that state- would have to be profitable at lower
Manchester and Sheffield by the Hual- of its parts, writing: “The benefits only owned Hebei Iron and Steel proposes to prices, or heavily subsidised by the Chi-
ing Group, known for developing whole- accrue if each part of the belt and road build in South Africa. nese state. Potential host nations are
sale markets in Xinjiang. gets built, or at least a significant part”. One consultant, who advises Chinese already pulling back on investment to
Others see a spurt of investment into Within China, regional promoters are businesses in Africa, says that would-be ride out the anticipated trough so they
regions that are already close trading rushing to tie their projects to the One Chinese investors always ask whether a cannot be counted on for the funds.
partners with China. Singapore, the Belt, One Road initiative with the same proposed project would be eligible for ‘The time is The AIIB could fill in the gaps once it is
trading hub for Southeast Asia, could enthusiasm and lack of geographic dis- earmarked One Belt loans from Chinese up and running, but details of how it will
capture some of the flow. tinction as China’s earlier “Develop the banks, before taking talks further. not ripe. It’s operate are still to be finalised.
“The country’s role as a major busi- West” slogan, which ultimately grew to Mr Zhao says the lack of projects so not that Another concern for Chinese compa-
ness, financial and trade hub for the include much of the nation. far is simply because the concept is new. nies is the security of any investment.
Asia Pacific region will only be But when it comes to committing “The time is not ripe. It’s not that there there aren’t After the fall of the Soviet Union, Euro-
enhanced,” says Stuart Fuller of law their money overseas, Chinese business aren’t projects, it’s just that they aren’t projects, it’s pean companies led by oil investors had
firm King & Wood Mallesons. people have so far been more cautious developed yet.” to develop investment protocols to
Mr Zhao believes that investors from than international politicians. There are Others believe the lack of specific just that bridge central Asian countries’ Soviet-
third countries would also benefit, if the very few identifiable One Belt, One projects reflects a lack of clear business they aren’t based legal and corporate structures
investment from the Chinese side Road projects outside China’s borders. rationale. Chinese state-owned and pri- with western corporate norms.
improves infrastructure such as roads, The exceptions are a slew of Chinese vate businesses have already rushed developed China is now developing similar pro-
ports or airports in the host country. investments announced for Pakistan, into any promising projects during the yet’ tocols to support an expected influx of
Bert Hofman, country director for the where 51 memoranda of understanding oil and commodities boom. New Chinese investment to the region.

‘Dawn raid’ drills may become

de rigueur as authorities swoop
Office raids
Foreign companies are
confronting a broader array
of regulatory risks than ever
before, reports Tom Mitchell
In the summer of 2014 the National
Development and Reform Commission
(NDRC) raided a number of foreign
companies suspected of violating Bei-
jing’s Anti Monopoly Law (AML). At the
same time, senior executives at the
Chinese operations of a large multi-
national were meeting to deliberate a
demand from the authorities that they
change their pricing policies.
The company’s chief financial officer
and legal counsel argued that there was
no legal basis for the instruction, and
recommended rejecting it. According to
one person familiar with the delibera-
tions, they were overruled by a more
senior colleague who said: “Don’t talk to
me about rule of law, this is China.”
The company’s China pricing policies
were duly adjusted and the company’s
operations — unlike those of many of
their competitors — were never raided
or fined.
Such fraught exchanges have become
increasingly common at the offices of
multinationals in China since 2013,
when the NDRC handed down a land-
mark series of fines on infant formula
manufacturers accused of violating the
2008 AML.
Coupled with similar investigations
by the State Administration of Industry
and Commerce, which also governs
aspects of the AML, and even police
investigations into allegedly crimi-
nal behaviour such as bribery, for-
eign companies are confronting a
broader array of regulatory risks
than ever before in the world’s sec-
ond-largest economy.
Some attribute the sea change to a
natural evolution of China’s regula-
tory environment. “It’s such a young
system that every day you’re coming
across a new area where the rules
haven’t been written,” says Nick Beck-
ett, a Beijing-based lawyer with CMS
Cameron McKenna.
Keep good records:
Susan Ning of King &
Wood Mallesons, Beijing
“It’s a good time for lawyers.”
Many lawyers are advising their cor-
porate clients in China to implement —
and practice — a kind of “dawn raid
drill” in anticipation of uninvited regu-
latory visits. Companies, they say,
should have designated employees
tasked with raising the alarm to senior
executives, who in turn manage the
response.
Mr Beckett says many companies “try
to control the flow of information” to
investigators but advises that they do so
in a helpful manner.
Susan Ning, a competition lawyer
with King & Wood Mallesons in Beijing,
adds that it is especially important to
make a record of the information pro-
vided. That can at least help companies
better understand the thrust of the
investigation.
Companies should not expect to be
presented with a warrant that has been
issued after careful deliberation by a
judge. They may well receive only an
“investigation notice”.
A company contending with a raid
has, in a large sense, already lost at least
half the battle. Once the NDRC or other
regulatory officials confirm that they
are investigating a company, it is
extremely unlikely for them not to fol-
low through with a finding of fault.
A raid, especially if news of it leaks via
the official Xinhua news agency or other
state media outlets, only makes it that
much more difficult for regulators to
back down. After that, Mr Beckett says,
“it is a damage limitation process”.
As a result, adds Erick Robinson at
Rouse, the international law firm, it is
essential that companies or their law-
yers have close connections with regula-
tors, which could enable them to nip
problems in the bud before they turn
into a full-blown scandal (Foreign com-
panies must learn trust and respect, see
page 4).
The opacity and presumption of guilt
that often surrounds regulatory investi-
gations in China can trigger a defensive
reaction from western companies more
familiar with adversarial judicial sys-
tems, in which it is expected that firms
and individuals will fight for their rights.
That can give rise to corporate reac-
tions ranging from “it’s not fair” to “how
can they think this?”, which often only
further antagonises investigators.
Chinese criminal and even political
“show trial” cases offer foreign investors
an important insight into the workings
of the country’s judicial system.
In a tradition dating back not just to
the early years of rule by the Chinese
Communist party, but also to imperial
times, remorse and confessions are
rewarded with leniency. Hence the pat-
tern of frequent state news broadcasts of
suspects “confessing” to police accusa-
tions about various crimes long before
any official hearing dates, in what to
western eyes appears a gross violation of
judicial due process.
In their desire to avoid any entangle-
ment with China’s regulatory appara-
tuses, some foreign companies have
begun to make proactive “applications
for leniency”.
The best example of this was the
NDRC’s finding last year against 12 Japa-
nese auto parts companies for alleged
price collusion. In a repeat of Japanese
cartel cases previously prosecuted in
the US and the European Union, the
parts suppliers admitted to conspiring
to fix prices to their automaker
customers.
According to people familiar with the
investigation, the case came about after
one of the Japanese companies reported
the behaviour to the NDRC in return for
leniency.
For the supplier in question, it turned
out to be a very effective way of avoiding
much more severe sanctions, while
other companies that were not as proac-
tive and co-operative
ended up paying
stiff financial
penalties.
4 ★ FINANCIAL TIMES Friday 20 November 2015

Doing Business in China

Cash-strapped Family ties prove

companies see indispensable
the appeal of Strategic revamp
Ben Bland looks at a
profit point in the industry. But unfortu-
nately they reached this perception at
the lip of the great recession.”
As the world’s biggest sourcing com-

returning locals company reinventing itself

after more than 100 years
in the sourcing business
Over the past 109 turbulent years of Chi-
Expatriates The number arriving on lavish nese history, the leaders of Hong Kong
sourcing and trading company Li &
corporate packages is falling, writes Patti Waldmeir Fung have had front-row seats for dra-
matic twists and turns of fortune.
pany, Li & Fung was hit hard. Profit has
dropped by 21 per cent since 2011 to
$539m last year, while turnover has
stagnated at about $19bn. Shares in the
company which is listed in Hong Kong
have lost more than 70 per cent of their
value since peaking in 2011, giving the
business a market capitalisation of
$6.2bn.
But Mr Fung, whose family still owns

L
iving in Shanghai is like living
in China — only less so. In
many ways, it is the least Chi-
nese of cities: English is
widely (if often badly) spoken
in many shops, restaurants and residen-
tial areas patronised by expatriates.
But Shanghai taxi drivers famously do
not speak English (or understand the
English names of even the most famous
city hotels) and finding an English
speaker outside expat areas can be
tough. Overall, Shanghai packs a mean
punch in terms of culture shock for any-
one who is not Chinese — but less so than
anywhere else on the mainland.
Exotic but not completely alien, mod-
ern but with a taste of the ancient,
Shanghai attracts people from around
the world who want to cash in on China’s
economic boom — but without stepping
too far outside their comfort zone. And
that remains true today, despite the Chi-
nese economic slowdown that has given
stock markets around the world jitters.
Despite Beijing’s recent announce-
ment that GDP growth could fall as low
as 6.5 per cent next year, down from
double digits as recently as 2010, there is
little sign of a big exodus of expatriates
from the mainland. In truth, China’s
economy has been slowing steadily for
several years as it matures, but for
ambitious expatriate managers, it
remains an important place to build a
career.
InterNations, the global expat com-
munity, says China ranks third behind
only the US and Malta, in its “job and
career” rankings of expatriate life in 64
foreign countries. A remarkably low 3
per cent of expats surveyed in China
said they regarded the state of the local
economy negatively — compared with
an average of 21 per cent who hold that
view in other countries, InterNations
said in its 2015 rankings released last
month. But when it comes to “feeling
welcome”, China sits at 61 out of 64
countries.
Still, there is no shortage of expats
coming to Shanghai for work, local
headhunters say, and figures for the
number of residence permits issued to
foreigners in Shanghai fell only slightly
between 2013 and 2014 and remain 70
per cent up on a decade ago, at about
170,000.
But local relocation companies, inter-
national schools and long-time expat
business people say they see a marked
change in the kind of expatriates who
are moving to Shanghai. Fewer are com-
ing on lavish corporate packages (as
companies save money by localising
senior positions) and more are coming
on their own.
Overall, foreign resident numbers fell
3 per cent last year, but relocation
company numbers and international
school enrolment suggest a much
steeper decline in executives heading to
Shanghai on full expat packages. The
headmaster of one of the leading Shang-
hai international schools says he sees a
marked change in the racial composi-
tion of the school’s students, with many
more Asian children and fewer Europe-
ans, to the point where the school has
had to offer English as a second lan-
Population overload: the commercial heartland on West Nanjing Road — Dreamstime
guage support to preschoolers for the
first time.
At a recent meeting sponsored by the
American Chamber of Commerce in
Shanghai, several managers of multina-
tional corporations said that most exec-
utive positions in their corporations had
been switched to local terms in recent
years.
“The number of expatriates hasn’t
fallen, but the composition of the expat
population has changed. Many more
expats are actually returning Chinese,
and the western expat on a two-three-
year contract is much scarcer than
before,” says one expat service provider.
Lawyers, who work on visa matters,
say that although overall residence per-
mit numbers have not fallen sharply,
the statistics could be inflated by expats
who were previously in the country ille-
gally, but regularised their status after a
recent crackdown.
Still, Shanghai’s reputation as a place
to live is far from stellar. Shanghai did
not even make it into the top 100 of the
world’s most liveable cities, according to
2015 rankings from Mercer, the employ-
ment consultants.
Many expats complain about traffic
and pollution, food safety and internet
speed. The stampede at the 2014 New
Year’s Eve celebrations in which 36 peo-
ple were trampled to death on the
Shanghai Bund was a sombre reminder
of the city’s crowds and chaos — and a
lack of public civility that is extreme
even by global megacity standards.
With additional reporting by Jackie Cai
Like many Chinese family-run busi-
nesses, the venture has found ways to
reinvent itself through war, the rise to
power of the Communist party, global
recessions and capital market routs.
But, while Asia is at peace and thriv-
ing, the company — which helps global
retailers such as Walmart and Marks
and Spencer source clothing, home-
wares and other products — is facing the
toughest challenge of its modern era.
After 20 years of rapid growth as
China emerged as the world’s factory
floor, the company came up against
what Spencer Fung, chief executive,
calls “almost a perfect storm” from 2010
onwards.
“The global financial crisis was the
first hit,” says Mr Fung, who is the great-
grandson of the company’s co-founder
and took the helm of Li & Fung in March
last year.
The worldwide demand shock came
just as factory wages in China, where Li
& Fung procures most of its goods, were
rising rapidly and the company was
struggling to digest the latest of 100
acquisitions during the previous two
decades.
Since then, the dizzying growth of
ecommerce and the expansion of low-
cost, fast fashion brands such as H&M
and Zara has shaken up the traditional
sourcing business still further.
“Li & Fung is facing terrific chal-
lenges,” says Robert Ross, a professor of
sociology at Clark University in Massa-
chusetts, who studies global apparel
supply chains. “They realised that being
the middleman is no longer the best
about 30 per cent of the company,
believes that investors will need to show
more patience in a venture just midway
through a strategic revamp. The com-
pany has already spun off its branded
goods business, now called Global
Brands Group that is listed in Hong
Kong with a market capitalisation of
about $1.8bn. Li & Fung is continuing to
streamline, while expanding into new
growth areas such as ecommerce and
logistics.
Spencer Fung,
Li & Fung chief
executive, says:
‘The global
financial crisis
was the first hit’
Like other sourcing companies, Li &
Fung is increasingly buying goods in
markets outside China, such as Vietnam
and Bangladesh where factory wages
can be 50 per cent lower. Mr Fung says
that 70-80 per cent of the company’s
durable goods, such as furniture, still
come from China, but only 35-40 per
cent of its clothing.
At the same time, it is trying to boost
its sales into China. While its Asian busi-
ness is growing, it still only accounts for
12 per cent of sales, compared with 63
per cent in the US and 17 per cent in
Europe. Mr Fung insists that the com-
pany remains focused on the long term.
“Our horizon is 10-20 years,” he says.
“We don’t want to do things that are only
good for the next quarter, we want to do
things that are good for the company.”

Foreign companies must learn that

trust and respect are paramount
OPINION
Erick
Robinson
China’s economic and industrial
transformation is occurring so rapidly
that foreign companies often fail to
appreciate the risks of doing business in
the country. This is particularly true in
the sphere of intellectual property (IP),
where companies now enjoy much
greater protections but have
simultaneously been tripped up by
competition regulators’ increased
scrutiny of their patent and licensing
practices.
China’s ability to protect patents has
grown after decades of non-existence
and non-enforcement. In 10 years, the
number of patent litigations filed has
more than quadrupled, with close to
10,000 cases submitted last year.
The Chinese government’s new
specialised IP courts now provide
companies with an enforcement
mechanism comparable to, if not better
than, those in Europe and the US.
Litigation in China also offers many
advantages to patent owners, including
win rates above 75 per cent (and even
higher for foreign patentees),
injunction rates above 95 per cent, short
time to trial, scant discovery and low
costs (less than one-tenth of those
incurred in the US). Most importantly,
because so many supply chains pass
through China, a single litigation can
effectively impose a global ban on sales
of a disputed product.
But not all patent owners should
rejoice. Along with a strengthening of
the patent system has come increased
enforcement of China’s 2008 Anti-
Monopoly Law (AML). Over the past
three years, China’s National
Development and Reform Commission
(NDRC) has beefed up staffing levels
and raised its price-related
investigations fourfold.
In 2013, the NDRC imposed price-
fixing fines of Rmb353m on six
Korean and Taiwanese LCD panel
manufacturers. Last year
Erick Robinson of
Rouse: ‘When you
are a hammer
everything looks
like a nail’
the NDRC began investigating
InterDigital, a US wireless technology
company, after complaints by Chinese
companies. InterDigital subsequently
reached settlement agreements with the
Chinese complainants and, in an
undertaking with the NDRC, said it
would scale back the royalty rates it
charges.
The NDRC also probed US technology
giant Qualcomm on similar grounds
and, earlier this year, imposed a record
penalty of Rmb6.1bn. Qualcomm
agreed to stop some of its “patent
bundling” practices and lowered certain
royalty rates by one-third.
AML penalties and fines in China
can be extreme. But in the case of
Qualcomm, perhaps the worst
consequence of its run-in with the
NDRC was the separate antitrust
inquiries that followed in South Korea,
the European Union and US.
The better road is one of
calm and thoughtfulness
rather than agitation and
hostility
There are a number of steps that
companies can take to minimise the
risks posed by regulatory investigations.
First, companies must have friends in
China. In a country where everything is
based on relationships, every company
must have multiple levels of
relationships with both government
officials and influential Chinese
industry leaders who have their ear
to the ground. This is not to encourage
any type of corruption, but rather
facilitate a free flow of information.
In China, trust and respect are
paramount and cannot be developed
overnight.
The challenge to Qualcomm
might have been avoided or minimised
if the US company had had better
Chinese government contacts who
could have advised it that problems
were brewing and explained the need
for action.
It is at this sort of early stage that
having knowledge of the problem and
the ability to communicate a defence is
paramount. Once the investigation was
announced publicly in February 2014,
there was no path for the NDRC to
impose either a minimal penalty or no
penalty without losing face.
Had Qualcomm and NDRC instead
been able to negotiate a mutually
acceptable solution earlier — and with
less publicity — the result may well have
been a lesser penalty that did not trigger
follow-up investigations in other
jurisdictions.
Second, all foreign companies and
their executives, lawyers and other
agents must act with great respect in
dealing with Chinese officials. US
companies in particular have a well-
deserved reputation for lacking
deference and humility.
Had InterDigital and Qualcomm
originally approached their situations
with greater meekness, things might
have evolved quite differently. Often it is
the lawyers that get in the way, because
when you are a hammer everything
looks like a nail. The better road is one
of calm and thoughtfulness rather than
agitation and hostility.
Third, any company that licenses
patents or technology in China should
always have in its back pocket a specific
minimum acceptable royalty rate. That
way any dispute can be nipped in the
bud with a public announcement that
the company is lowering its licensing
rate to an “even fairer level”, with
examples to support this claim. This is
not ideal but far better than the
alternative of having to face a formal
AML investigation.
The writer is chief patent
counsel for Rouse, an
international law firm
specialising in
intellectual
property, and a former
Qualcomm lawyer
 FRIDAY 20 NOVEMBER 2015 WORLD BUSINESS NEWSPAPER EUROPE

Gillian Tett Square dance Half empty

Who should pay for defence The tech group’s IPO does not bode well Why smart cups don’t hold water
against cyber attacks? — PAGE 9 for Silicon Valley — RICHARD WATERS, PAGE 14 PERSONAL TECHNOLOGY, PAGE 10

Western intelligence agencies Briefing

i Pfizer set for US fight over Allergan deal
Pfizer is gearing up for a US fight provoked by fears

forced to rethink tracking of Isis that a deal to buy Ireland’s Allergan would deprive
the US of billions of dollars in taxes, threaten jobs
and erode the country’s science base.— PAGE 13

i Credit Suisse to shun ‘risky activities’

3Surveillance failure 3 Ringleader killed in France 3 Ministers to urge Schengen changes
ANNE-SYLVAINE CHASSANY — PARIS
SAM JONES — LONDON
Western intelligence agencies were
forced to rethink their operations and
reassess their ability to track Isis yester-
day as French officials confirmed the
organiser of Friday’s Paris attacks had
been operating from under their noses.
Abdelhamid Abaaoud, the 27-year old
Belgian jihadi said to have plotted the
attacks in the French capital last week,
and previously thought to be operating
from Isis’s territories in Syria, died dur-
ing a seven-hour siege in Saint-Denis on
Wednesday, authorities confirmed.
“If Abaaoud has been able to travel
from Syria to France, it means that there
are failings in the whole European
system,” said Laurent Fabius, foreign
minister.
A senior European intelligence offi-
cial said that the attacks had raised a
host of serious questions for him and his
colleagues at other agencies. Among the
issues they say are responsible for the
lack of intelligence on the complex
attack, in which eight jihadis killed 129
people across Paris, is the use of
encrypted communications and
“extremely diligent” operational secu-
rity measures between Abaaoud and
others in the terror cell responsible
“Finding Abaaoud in France and not
in Syria means that all our European
system of alerts has failed completely.
It’s a huge collective failure,” terrorism
consultant Jean-Charles Brisard said.
Abaaoud was linked with four of six
attempted Isis attacks in France since
the spring that had occurred before
Friday’s massacres, interior minister
Bernard Cazeneuve said.
The plots, he added, had identical
modus operandi: “Overseas planning of
violent actions perpetrated by jihadis
from European countries who have
been trained to handle weapons to carry
out attacks.”
France is demanding that Brussels
Credit Suisse plans to stop its bankers from engaging
in “overly risky activities” by not setting external
profit targets. Bankers will focus on support for
private banking and wealth management.— PAGE 16
i BoJ to keep buying government bonds
The Bank of Japan has kept monetary policy on hold,
‘Finding Abaaoud in despite the onset of a technical recession, and is
persisting with its argument that the economic
France and not in recovery remains on track.— PAGE 2
Syria means that
i Argentina presidential poll turnround
our European system A month ago Daniel Scioli, the chosen
of alerts has failed successor to Cristina Fernández as
president of Argentina, seemed sure
completely’ to win against his centre-right rival
Mauricio Macri, right, with his
campaign based on fear. Yet it is Mr
Macri who now seems set to win on Sunday.— PAGE 3
i EM valuations fall to historic low
The sell-off in emerging market equities has pushed
valuations to an all-time low, reflecting their marked
underperformance since the immediate aftermath
of the global financial crisis.— PAGE 22
i India’s central bank hit by striking staff
India’s central bank ground to a halt as staff went on
strike to protest against changes that would curb
the bank’s independence and to demand improved
pensions. Further strikes are threatened.— PAGE 2
i Bombardier sells 30% stake in train unit
Quebec’s public pension fund is to buy a 30 per cent
stake in Bombardier’s train-making unit for $1.5bn,
after the ailing group shelved a plan to float shares in
Abdelhamid grip” on the security threats facing the series of demands to close loopholes in Abaaoud had been a key target for the subsidiary after a strategic review.— PAGE 17
Abaaoud had bloc by allowing tighter border checks the passport-free Schengen zone’s secu- French jets in Syria for several weeks.
been a key and removing barriers to sharing airline rity arrangements. Plotting against France by him was one Datawatch
target for passenger data. French spymasters were unaware of the reasons President François Hol-
French jets in EU home affairs ministers meeting in that Abaaoud had returned to Europe lande expanded French air strikes
Syria for weeks Brussels today are preparing to reprise a until a foreign intelligence service against Isis into the country. Most pressing problems
tipped them off that the jihadi had The US Department of Homeland faced by SMEs in the EU
recently been spotted in Greece. Security warned six months ago that Isis 2011 2014
Inside ‘This is the future. There are Per cent 0 5 10 15 20 25
Further information was gleaned on had developed sophisticated opera-
many Abdelhamid Abaaouds’ Monday that he could be on French soil, tional capabilities that made it likely Finding customers Brussels’ annual
Analysis, page 4 report on small
allowing authorities eventually to track they would perform a large-scale attack Availability
him down to a flat in Saint-Denis, a sub- on European targets with “small arms” of skilled staff and medium-sized
‘Putin is charging ahead in Regulation enterprises shows
urb of the capital. and “improvised explosive devices”.
the fight against terrorism’ The police operation in Saint-Denis Additional reporting by Simon Kuper in Competition that finding
Global Insight, page 5 customers
resulted in the deaths of at least two Paris Access to finance
remained the most
people — one a female suicide bomber, Paris tourism page 2 Cost of production
‘A black arms market has made while the other was believed to have Reports and analysis pages 4 & 6
or labour pressing problem
for SMEs in 2014.
Belgium a jihadi launch pad’ been hit by grenade fragments making Letters page 8 Source: European Commission

and the European parliament “get a Big Read, page 7 his mangled body difficult to identify. Philip Stephens page 9

Uber and Lyft race to pick up $1.5bn as

investors flinch at lofty tech valuations
LESLIE HOOK — SAN FRANCISCO Fidelity marked down the value of its Both companies are heavily lossmak-
JAMES FONTANELLA-KHAN — NEW YORK
stake in messaging app Snapchat. ing, common among start-ups in Silicon
Ride-hailing rivals Uber and Lyft are Uber’s initial conversations with Valley where growth is prized among
racing to raise a combined $1.5bn by investors were based on a valuation of early stage businesses. Uber has poured
the end of the year, as investors become around $70bn. However, that figure has billions of dollars into its international
Biggest diamond in 100 ever more sceptical of the lofty valua- since come down, according to people operations to gain global market share.
years found in Botswana tions attached to Silicon Valley tech familiar with the matter. Earlier this Lyft, which has raised a total of $1bn,
companies. year, investors valued Uber at $50bn. has invested heavily in US marketing as
Report i PAGE 14 Uber declined to comment. it tries to steal domestic market share
Uber is seeking to raise $1bn and Lyft is Both companies are already among from Uber. The company declined to
aiming for $500m as the companies the tech sector’s most aggressive fund- comment on the fundraising but John
Austria €3.60 Macedonia Den220 fight to build market share and finance raisers, with Uber having raised more Zimmer, co-founder, said: “We are
Bahrain Din1.7 Malta €3.50
Belgium €3.60 Morocco Dh43 expensive legal and political campaigns than $10bn, a record for a US tech growing faster than Uber in the US.”
Bulgaria Lev7.50 Netherlands €3.60
Croatia Kn27.50 Nigeria Naira715 to back their business models. start-up. Lyft is targeting a $4bn valua- Yet Uber has revenues 10 times higher
Cyprus €3.50 Norway NKr34
Czech Rep Kc100 Oman OR1.50 The fundraisings come at a time when tion ahead of the new fundraising, up than Lyft’s, according to people familiar
Denmark DKr32 Pakistan Rupee 250
Egypt E£20 Poland Zl 18 it is becoming harder to gauge how from the $2bn level at which it raised with the matter. It expects net revenues
Finland €4.10 Portugal €3.50
France €3.60 Qatar QR15 investors will react to lossmaking start- money from investors in May. of about $2bn this year, they said. Lyft
Germany
Gibraltar
€3.60
£2.70
Romania
Russia
Ron17
€5.00 ups. Payments company Square priced “The air has gotten pretty thin where said it was taking in $1bn in fares a year,
Greece
Hungary
€3.50
Ft990
Saudi Arabia
Serbia
Rls15
NewD420 its IPO below its indicated range but these valuations are,” said Max Wolff, from which the company’s take would
India
Italy
Rup170
€3.50
Slovak Rep
Slovenia
€3.60
€3.50
then saw its shares initially pop 50 per chief economist at Manhattan Venture be $200m based on its normal cut.
Kazakhstan
Kenya
US$5.50
Kshs300
Spain
Sweden
€3.50
SKr37
cent when public trading started yester- Partners, which brokers transactions in Lex page 12
Kuwait
Latvia
KWD1.50
€6.99
Switzerland
Tunisia
SFr5.90
Din7.50
day. Earlier this year, fund manager private company shares. Square IPO page 20
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

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9 770174 736159
2 ★ FINANCIAL TIMES Friday 20 November 2015

INTERNATIONAL

Monetary policy Japan recovery

ECB looked at further stimulus in October BoJ monetary

Weak regional and global
growth almost led central
bank to act last month
CLAIRE JONES — FRANKFURT
Eurozone policymakers mooted ramp-
ing up their monetary stimulus as early
as October, according to a set of Euro-
pean Central Bank accounts that tees up
a crucial re-examination of the bank’s
policy strategy on December 3.
The ECB is expected to unleash an
enhanced version of its €1.1tn quantita-
tive easing package and will consider
cutting one of its benchmark interest
rates deeper into negative territory in its
early December vote.
The accounts for the rate-setting gov-
erning council’s late October meeting in
Malta show weak regional and global
Economic fallout
growth, as well as the resistance of the
US Federal Reserve to raising rates,
almost forced the ECB to act sooner. “It
was argued that in such an environ-
ment, the risk of deflation remained rel-
evant,” the accounts said. “Against this
background, the view was put forward
that a case could be made for consider-
ing reinforcing the ECB’s accommoda-
tive monetary policy stance already at
the current meeting and, in any case, to
act sooner rather than later.”
The council’s 25 members opted to
wait until next month on signs the cur-
rency area’s economy had so far proven
resilient to weaker global growth.
The accounts, published yesterday,
read like a clear case for injecting more
stimulus into the eurozone’s economy.
While the council believes aggressive
monetary easing is thawing the region’s
credit markets and boosting lending,
there are concerns among the member-
ship that inflation is set to take much
longer to return to target than officials
had hoped when they unveiled their
original QE package in January.
Some members are particularly
‘Despite the delay, we
consider the messages
here still wholly relevant’
Timo del Carpio, economist
spooked by signs that weak demand is
pushing down core inflation rates,
which strip out the costs of more volatile
items such as food and energy goods.
Chief among those fears is that cheap
oil threatens derailing inflation longer
term. Dovish members on the council
also cite diminished expectations that
the ECB has what it takes to return infla-
tion to its target of below but close to
2 per cent. At the moment, annual head-
line inflation is 0.1 per cent across the
currency area, a rate similar to that of
other advanced economies. Price pres-
sures in the eurozone have been weaker
for longer than other economies, how-
ever. Core inflation is 1.1 per cent.
Timo del Carpio, economist at RBC
Capital Markets, said the account shows
a council “primed and ready for action”.
“Despite the delay between the meet-
ing and the publication of its account,
we consider the messages here are still
wholly relevant to the contemporane-
ous policy debate,” he added.
To address deflation threats and a
recovery which the accounts describe as
“particularly sluggish”, the ECB could
increase its monthly purchases under
QE from the current level of €60bn or
buy other assets as part of the package.
Purchases now are limited to mostly
government bonds, alongside loans
sliced and repackaged either as asset-
backed securities or covered bonds.
Another option open to the council is to
extend purchases beyond the current
deadline of September 2016.
The council is also willing to abandon
an earlier commitment to keep interest
rates unchanged and raise the rate it
charges on a portion of reserves held at
the eurosystem’s central banks from the
current level of 0.2 per cent.
The accounts said “reference was
made to the experience in other juris-
dictions, where negative rates had not
appeared to result in major difficulties
or widespread substitution of cash”.
Denmark’s and Switzerland’s central
banks have imposed deposit rates of
minus 0.75 per cent.
policy on
hold despite
technical
recession
ROBIN HARDING — TOKYO
The Bank of Japan kept monetary pol-
icy on hold despite the economy enter-
ing a technical recession as it continued
to argue the recovery is on track.
Japan’s central bank said it will keep
buying government bonds at a pace of
Y80tn a year in an effort to drive down
long-term interest rates, even as it noted
weakness in some measures of public
inflation expectations.
The BoJ’s decision highlights a differ-
ence to its stance last year, when it eased
policy to boost inflation expectations.
Now the BoJ is signalling it will keep pol-
icy on hold as long as inflation is on
course eventually to reach 2 per cent.
The yen was stronger after the deci-

Paris tourist spots eerily quiet as terror deters visitors
ADAM THOMSON — PARIS
Carolina Cabrera and Deepe Randhawa
yesterday achieved what couples visit-
ing Paris can usually only dream of:
they were able to walk unimpeded
through the Louvre to the Mona Lisa
and appreciate the world’s most
famous painting without the crowds.
“It’s very quiet,” observed Ms Cabrera,
looking round the half-empty salon.
They booked their trip from North
America almost a month ago, and
thought seriously about cancelling after
last Friday’s deadly terrorist attacks.
“It’s not that we thought it would be
dangerous — it’s more that we thought it
would be sombre,” said Mr Randhawa.
In the past few days, clear signs have
emerged showing that the murderous
attacks have had an economic impact
on the French capital — one of the most
visited cities in the world.
A survey by Synhorcat, the French
hotel and restaurant operators’ union,
suggests that sales in the city’s cafés,
bars and brasseries during the past
week are 44 per cent down on the same
period last year, while hotels have suf-
fered a 57 per cent drop in business.
Didier Chenet, the union’s president,
is working on ways to absorb some of
the shock. But he admitted: “There is no
question that there is a strong economic
impact for the whole sector.”
A slew of rock performers, including
U2, Prince, the Deftones and the Foo
Fighters, have cancelled concerts in
Paris — in some cases, whole European
tours — as a result of the bloodshed.
“In light of this senseless violence, the
closing of borders, and international
mourning, we can’t continue right now,”
read a post on the Foo Fighters’ Face-
book page. “There is no other way to say
it. This is crazy and it sucks.” The post
got 155,000 likes.
Yesterday, the normally long queue
outside the Louis Vuitton store on the
Champs Elysées had disappeared, leav-
ing the velvet rope used to control the
crowds redundant.
“It’s dead,” admitted one staff mem-
ber. Since the attacks, the store has
boosted security. Customers are patted
down as well as having bags checked
Air France refused to comment on
passenger numbers and cancellations
on Paris flights. But on Tuesday, the low-
cost airline easyJet said that demand for
Security travel to Paris had fallen. “You will
crackdown: always see a cooling-off period, but you
police snipers also see quite a quick resumption to
take aim at the travelling again,” Carolyn McCall,
Hôtel des easyJet’s chief executive, told reporters.
Invalides The airline, which offered people who
military booked travel to Paris the possibility of
monument and postponing or changing their tickets,
museum noted there had been an increase in the
complex in Paris number of passengers who had booked
during a visit by to go to France but had not shown up
President over the weekend.
François Wider questions remain about what a
Hollande Paris slowdown could mean for the
yesterday — Reuters overall French economy at a time of
fragile growth.
Anna Zabrodzka, an economist at
Moody’s Analytics, said France’s tour-
ism sector, which accounts for 7 per cent
of gross domestic product, was unlikely
to suffer a sustained decline. However,
she said the longer-term fallout was
“anyone’s guess right now”.
Philippe Waechter, chief economist at
Natixis Asset Management, said previ-
ous terrorist attacks on big cities such as
New York, London and Madrid — as well
as Paris after the January killings — had
offered little evidence of a significant
economic knock-on effect.
“Past episodes of attacks have not
plunged the local economy into a sharp
slowdown,” he concluded.
For now, though, the cautious opti-
mism is little consolation for those
whose livelihoods depend on servicing
the city’s 22m annual visitors.
Johan Giethlen has been working at
the Louvre’s audio tour counter for two
years — and has never seen the museum
so quiet.
“It’s really empty,” he said. “It’s quite
strange — eerie.”
Outside, the streets were wet with
drizzle, but Kamal, an umbrella seller
from India, was abnormally downbeat.
57% “I normally sell 10 or 15 of these a
Drop in business day,” he said, pointing to a bag full of
suffered by Paris merchandise.
hotels compared “I haven’t sold one today.”
with same period On the Rue des Rosiers, which forms
last year, according
to operators’ union the backbone of the city’s Jewish quarter
in the Marais district, things were at a
30% near standstill during lunchtime. A
Fall-off in trade gruff ticket seller at L’As du Fallafel,
since last week at where long queues normally form out-
L’As du Fallafel
eatery in the Marais side, said business was down at least 30
district per cent since last week.
David Albouker, manager at the
nearby Miznon restaurant, said that
sales had halved since the attacks.
Moreover, he had personally avoided
taking the Metro and had drastically cut
down the number of times he went out
for drinks with friends.
“The January attacks were against a
specific target,” he said. “This time, it’s
everyone.”
Paris terror page 4
sion at Y123.2 to the dollar while the
Topix share index gave up some of its
gains, trading up 0.7 per cent at 1,598.
The BoJ decision came as Japan
recorded an unexpected Y111bn trade
surplus for October. Showing the boost
to the economy from falling oil prices,
the value of imports was down by 13.4
per cent on a year ago.
But exports also fell 2.1 per cent by
value, despite the heavy depreciation of
the yen, showing the impact of China’s
slowdown on Japanese industry.
Exports to China fell for the third con-
secutive month and were down by 3.6
per cent on a year ago.
“Japan’s economy has continued to
recover moderately, although exports
and production have been affected by
the slowdown in emerging economies,”
said the BoJ’s policy board in its latest
statement. “Inflation expectations
appear to be rising on the whole from a
somewhat longer-term perspective.”
Headline inflation is running close to
zero because of weak oil prices. Exclud-
ing food and energy, prices are up by
0.9 per cent on a year ago.
Haruhiko Kuroda, BoJ governor, has
placed great weight on increasing public
expectations of inflation in order to
break the deflationary mindset brought
about by 20 years of on-and-off falls in
prices.
In contrast to October 2014, when the
BoJ surprised markets by pre-emptively
easing monetary policy, officials believe
a “virtuous circle” from higher incomes
and profits to higher spending and
investment is still at work. They are also
encouraged by signs of changed corpo-
rate behaviour, with a great willingness
to raise prices.
“The fundamentals of Japan’s econ-
omy are sound and the environment
surrounding firms and households has
significantly improved compared to
some years ago,” said Mr Kuroda
recently.
Officials think corporate decisions to
increase prices — and the acceptance of
those rises by shoppers — is a better
guide to the public’s real opinions about
future prices.
The BoJ is now closely focused on next
spring’s round of wage negotiations.
“When it comes to the impact on prices,
the focal point is the developments in
wage increases towards next fiscal year,”
said Mr Kuroda. The most likely trigger
for further BoJ action would be signs of a
weak pay round.
“In the long term, prices won’t rise if
wages don’t rise,” said Mr Kuroda at his
press conference yesterday.

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Independence concerns
Indian central bank staff strike over pensions and rates reform
AMY KAZMIN — NEW DELHI
India’s central bank ground to a halt
yesterday as 17,000 staff went on strike
to protest against a proposed overhaul
of the country’s monetary policy
framework that would curb the bank’s
independence, and to demand
improved pensions.
The United Forum of Reserve Bank
Officers and Employees, an umbrella
group of four unions representing
Reserve Bank of India staff, said its
members had taken a day’s mass “cas-
ual leave” to protest against what it
called New Delhi’s plans to “cripple the
RBI”.
But the one-day strike was also aimed
at raising the stakes in a long-running
battle over the RBI’s pension scheme,
with disgruntled retirees complaining
that their benefits have been severely
eroded by years of high inflation.
The unions warned they would step
up their agitation — with longer strikes
in the weeks ahead — if New Delhi did
not accept the RBI staff’s “very reasona-
ble demand” of improved pension
payment.
The basic pension does not rise with
inflation “which puts thousands of RBI
pensioners in extreme penury in these
days of soaring prices, increased medi-
cal costs, etc”, the central bank unions
said in a joint statement.
They added that peaceful efforts had
failed to bear fruit after eight years. Now
“RBI staff and retirees have reached
[their] limit of patience and are com-
pelled to mobilise to fight”.
The strike by the RBI employees is
the latest setback for Prime Minister
Narendra Modi’s administration, which
is also under pressure from veterans
Striking RBI workers demonstrate in Ahmedabad yesterday — Amit Dave/Reuters
to overhaul military pension schemes.
Veterans have been protesting for
months in New Delhi to demand a “one-
rank, one-pension scheme”, which
would ensure that all retirees of the
same rank and length of service
received the same pension, regardless of
when they retired. The government
promised to make such changes in
August, but has subsequently angered
veterans by trying to impose various
caveats.
The strike by central bank staff
also throws a spotlight on concerns over
erosion of the RBI’s independence.
Until now, setting interest rates has
been the exclusive purview of the RBI
governor. But India’s draft financial
code, released earlier this year,
proposed establishing a new seven-
member Monetary Policy Committee
— dominated by government nominees
— to set rates, raising the spectre that
the RBI’s independence to set monetary
policy would be curbed, with interest
rate decisions determined by govern-
ment policy.
Raghuram Rajan, the central bank
governor, has supported the creation of
a Monetary Policy Committee to set
rates but talks continue about the com-
mittee’s precise composition and how it
would function.
In their statement, however, the RBI
unions said successive administrations
in New Delhi had “long been trying to
coerce the RBI to surrender to their
pressure tactics” of pushing for lower
interest rates for short-term gains.
Having failed, the union statement
said, “the government is keen to virtu-
ally take over the function”.
Additional reporting by David Keohane
in Mumbai
Friday 20 November 2015
Election. Momentum shift
Fear campaign
falters as
Argentines look
for change
Mauricio Macri is leading early
favourite Daniel Scioli in polls
as voters adjust to end of boom
BENEDICT MANDER — BUENOS AIRES
Fear, it transpires, is not a winning elec-
toral strategy in Argentina.
A month ago, Daniel Scioli looked to
be a shoo-in as next president of Latin
America’s third-largest economy. As the
chosen successor of Argentina’s fiery
leader, Cristina Fernández, he promised
Argentines continuity, albeit a more
moderate version of her populist, free-
spending and nationalist policies.
This Sunday’s presidential election
was his to lose. Especially, it seemed, as
he could paint his centre-right oppo-
nent, Mauricio Macri, as a bloodless
“neoliberal” who would wreak untold
economic pain on his countrymen.
“His ideas, decisions and proposals
are a danger for the whole of our soci-
ety,” Mr Scioli inveighed during Argen-
tina’s first-ever presidential debate last
Sunday. Mr Macri’s promises of change
are a “great lie”, he added.
Turnround:
centre-right
candidate Mauricio
Macri has a
9-point lead, says
pollster Elypsis
Yet now, on the eve of the vote and
with the economy in the doldrums, it is
Mr Macri, the “turnaround candidate”
and pro-business mayor of Buenos
Aires, who is leading the polls — and
with a 9-point lead, according to Elypsis,
a reputed local pollster.
The shift is a striking illustration of
how many countries in the region, such
as Brazil and Venezuela, are also adjust-
ing to the end of a decade-long economic
boom and how voters are rejecting the
governments and charismatic leaders
that presided over them.
Mr Scioli’s fear campaign was a “mis-
take”, said Juan Germano, director of
Isonomia, another local pollster. “Scioli
failed to understand what Argentines
want”, especially after 12 “very intense”
years of being ruled by the imperious
Ms Fernández and Néstor Kirchner, her
late husband. “The desire for a change
among Argentines is pretty clear.”
That became obvious on October 25,
when Mr Macri won 34 per cent of the
vote in the first round. It was not enough
to beat Mr Scioli, who won 37 per cent,
Fiscal woes
Brazilian inflation surge adds
to economic and political crisis
JONATHAN WHEATLEY
Brazilian inflation has risen to its high-
est level in 12 years, adding to negative
data and underlining the mounting
challenges that face the government as
it struggles to steer the country
through a deepening economic and
political crisis.
Inflation in the year to November 15 was
10.28 per cent according to the IBGE,
Brazil’s statistics office. Yet in spite of
rapidly rising prices, the economy is set
to contract by more than 3 per cent this
year, according to a weekly central bank
survey of market economists.
“This is more than stagflation,” said
Alberto Ramos, head of Latin American
research at Goldman Sachs. “This is a
nasty recession accompanied by accel-
erating inflation.”
The government’s main problem is
fiscal. It promised a primary budget sur-
plus this year (before interest pay-
ments) equal to 1.2 per cent of gross
domestic product. Instead, it is on track
to deliver a primary deficit of 2 per cent
of GDP. Its total deficit, including inter-
est, is likely to be 9 or 10 per cent of GDP,
Mr Ramos said.
With government spending out of
control — and with more than 90 per
cent of public spending mandated by
Brazil’s constitution — the public
accounts have sunk deep into the red.
Government debt, internal and exter-
nal, is equal to 66 per cent of GDP and
rising.
While that is less than in other falter-
★ FINANCIAL TIMES 3
INTERNATIONAL
Cracking the whip:
an area with nearly
200,000 cattle is to
stay in Australian
hands Quinn Rooney/Getty
but it put him within spitting distance.
Crucially, Mr Macri also had voter
momentum behind him.
In addition, the government suffered
an unprecedented defeat in Buenos
Aires province, Argentina’s largest. Tra-
Land block Australia has blocked Chinese bidders’
efforts to buy a A$350m ($250m)
swath of Australian farmland three-
highlights the balancing act between
the benefits of inward investment and
concerns over foreign ownership.
federal treasurer Scott Morrison
said the acquisition of the cattle
station by foreign investors “would
ditionally a stronghold of the ruling Per-
onist party, Mr Scioli had ruled it for the Australia bars quarters of the size of England,
complete with nearly 200,000 cattle,
Chinese bidders led the pack to buy
S Kidman & Co, a family-owned
be contrary to the national interest”,
largely owing to proximity to a
past eight years, The seat instead went
to the fresh-faced María Eugenia Vidal,
formerly Mr Macri’s deputy mayor.
sale to Chinese on the grounds of national interest.
The move, a blow to China’s
voracious appetite for agricultural and
operation that controls pastoral leases
across 101,411 sq km in the outback
and owns roughly 185,000 head of
weapons-testing site. All bidders
subsequently withdrew their offers.
The door is now open for a
It is not just the public that is clamour- food assets, is the first such ruling cattle. But yesterday, following a possible partial sale that does not
ing for change in a country whose stag- under the new government of Prime recommendation from Australia’s breach the national interest.
nating and investment-starved econ- Minister Malcolm Turnbull and Foreign Investment Review Board, Peter Wells
omy is struggling with a widening fiscal
deficit, double-digit inflation, an over-
valued currency and an acute shortage
of dollars. Businesses want change, too.
Early signs that foreign investment is
flowing back into an Argentina on the
verge of change include a $16bn nuclear
deal with China signed last week, while
US businesses have been eagerly send-
ing teams to Buenos Aires to scope out
opportunities.
Financial investors are also hugely
expectant. Argentine equities and
bonds have rallied for the past month as
investors have bet that Mr Macri, a
former president of Boca Juniors, one of
Argentina’s most popular football clubs,
will introduce much-needed economic
reforms and strengthen the country’s
degraded institutions.
“I have never seen such demand for
an Argentine economist,” said Andrés
Borenstein, BTG Pactual’s chief econo-
mist in Argentina. “If Macri wins, there
is going to be a rally. There is a part of the
Macri dividend that is not yet priced in,”
he said, estimating that investors are
assuming a 60 to 80 per cent probability
that Mr Macri will win.
There will be a difficult start for who-
ever triumphs. The dire economic leg-
acy left by Ms Fernández requires
urgent attention. The most immediate
problems are an acute shortage of for-
eign exchange reserves and an overval-
ued currency.
Mr Macri told the Financial Times in a
recent interview that he would lift strict
capital controls implemented four years
ago on “day one” of his presidency,
which will lead to a significant devalua-
tion from Argentina’s official exchange
rate and could stoke inflation already
running at around 20 per cent.
There are also high hopes that the
next government will swiftly settle a
marathon legal dispute with a group of
“holdout” hedge funds that has blocked
Argentina’s access to international capi-
tal markets since it defaulted on $100bn
of debt in 2001.
ing countries such as Greece, the cost of
servicing Brazil’s debt, at about 20 per
cent a year, is astronomical.
“Public debt to GDP is rising by 9 or 10
percentage points of GDP a year,” said
Maarten-Jan Bakkum, senior emerging
markets strategist at NN Investment
Partners. “That’s explosive. The cost is
getting higher quickly. At some point
the market will stop believing that pub-
lic debt is sustainable.”
There have already been jitters. In
September the national treasury can-
celled three bond auctions after inves-
tors backed away.
“Markets are certainly apprehensive,”
said Mr Ramos. “It is imperative that the
government changes its fiscal position.”
Failure to do so could prompt inves-
tors to take their money out of the coun-
try. Evidence of this has already begun
to emerge. Foreign investors attracted
to Brazil by its very high interest rates —
the central bank’s overnight rate is 14.25
per cent — have increasingly taken to
hedging their foreign exchange expo-
sure but this means they give away a
large part of their earnings. It also adds
to pressure on the currency.
The IBGE also reported yesterday that
unemployment had risen to 7.9 per cent
in October, further undermining the
government’s rock-bottom popularity.
Brazil’s deepening crisis has been
helped along by political paralysis, a
result of a far-reaching corruption scan-
dal and a failure by the government of
President Dilma Rousseff to manage a
fragmented Congress.
4 ★ FINANCIAL TIMES Friday 20 November 2015

PARIS TERROR

Migration

Brussels struggles to strike Turkey deal on refugees

Erdogan negotiations with
EU turn ‘sour’ as Ankara
presses for aid package
ALEX BARKER — BRUSSELS
MEHUL SRIVASTAVA — ISTANBUL
A flagship EU-Turkey plan to stem the
migrant flow to Europe is floundering as
Ankara piles pressure on the EU to
deliver on a multibillion-euro aid pack-
age and other elements of the bargain.
The challenge of completing the deal,
hammered out through more than a
month of negotiations, was underlined
during a difficult meeting on Monday
between senior EU officials and Turkish
president Recep Tayyip Erdogan.
According to several people familiar
with the talks, Mr Erdogan baulked as
Jean-Claude Juncker and Donald Tusk,
the respective presidents of the Euro-
pean Commission and Council, pressed
him for a detailed timetable for meas-
ures intended to discourage migrants in
Turkey from continuing their journey
to Europe. These include tightening
border controls and awarding work
rights to 2m Syrian refugees.
One senior official familiar with the
discussion said the meeting turned
“sour” as Mr Erdogan demanded
Europe move first on its pledges.
Ankara is seeking €3bn in support, reg-
ular Turkey-EU summits and a clear
political path to open several chapters in
stalled EU membership talks. There was
also disagreement as to whether the
EU’s planned financial assistance pack-
age covers one or two years of aid.
According to another European offi-
cial briefed on the meeting, Mr Erdogan
at one point referred to Mr Juncker as
the former premier of Luxembourg, “a
country the size of a Turkish city”. Yes-
terday Mr Juncker described the meet-
ing as “sportive and exhausting”.
Senior German and other EU officials
are convinced Mr Erdogan has the
power to dramatically cut the outflow
from Turkey and want to see tangible
results by the end of the year. But it
remains unclear how much Turkey can
actually do to make that happen, even if
it reaches an agreement with the EU.
Frans Timmermans, the commis-
sion’s vice-president, went to Ankara
yesterday to meet Feridun Sinirlioglu,
Turkey’s foreign minister, to rescue the
potential deal. It was supposed to have
been fleshed out and formally signed off
at an EU-Turkey summit on November
29. Mr Juncker said the discussions with
Mr Timmermans showed the will on
“both sides to get closer together”. The
talks helped to steady the situation but
diplomats worry that difficulties with
Mr Erdogan may jeopardise the sign-off.
‘[Turkey] are trying to
exploit this situation in a
way that some countries
find unacceptable’
“We don’t want a summit for the sake of
a summit,” said one Turkish official.
“We have to see they are serious.”
A senior European diplomat said the
“tough exchange of views” underlined
how difficult it was to negotiate with
Turkey — particularly at a time when
some member states are desperate for
assistance with the crisis and have little
leverage. “They are trying to exploit this
situation in a way that some countries
find unacceptable,” he said
There are an estimated 2.5m Syrians
already in Turkey, along with well-es-
tablished and lucrative smuggling
routes. Turkish authorities would have
to launch a massive effort to cut off the
eastern Mediterranean route that many
have followed to Europe.
It would likely require increased
policing, greater co-operation with the
EU and changes to refugee policy to con-
vince refugees they might have better
opportunities for work and assimilation
in Turkey than in Germany or Scandi-
navia. One of the key EU suggestions
includes the issuance of work permits
for Syrian refugees in Turkey, which is
already dealing with a high rate of
unemployment and is in the middle of
increasing the minimum wage.
The Turkish Coast Guard and local
officials bordering the Aegean Sea —
from where as many as 5,000 people
make the daily perilous crossing to
Greek islands like Lesbos — are already
overwhelmed by the task of saving lives,
dismantling organised gangs that facili-
tate the smuggling and housing those
who are detained while trying to cross.
Metin Corbatir, of the Research
Center on Asylum and Migration in An-
kara, said: “As you take more preven-
tive measures, people put themselves at
greater risk. Even if you buy 10 or more
coastguard ships, the demand is so huge
and for them it’s a life or death issue.”
FT Big Read page 7
Philip Stephens page 9

Isis command structure State of emergency

Abaaoud’s speedy Sweeping

evolution from thief
to jihadi linkman
SAM JONES — LONDON
The transformation of Abdelhamid
Abaaoud — the Isis figure at the centre
of the Paris attacks — from suburban
thief to mass murderer in just two
years, epitomises the new face of jihadi
terror.
Abaaoud, who was killed by French
police on Wednesday afternoon, has
been a marked man for months. But
after the massacre in the French capital
on Friday, perpetrated by Isis gunmen
and bombers under his guidance, track-
ing down the 27-year-old became the
top priority of every counter terrorism
agency in Europe.
On Monday — in a dramatic twist to
the largest counterterror operation ever
mounted in Europe — French intelli-
gence determined that Abaaoud was
under their noses, and was already
working with another cell in Paris to
launch an imminent attack on Charles
de Gaulle airport.
In the small hours of Wednesday
morning, more than 110 police stormed
the building occupied by the jihadi,
prompting a seven-hour stand off where
5,000 rounds were fired before Abaaoud
was eventually killed. It took 24 hours
for forensic specialists to formally iden-
tify his remains.
Abaaoud was more puppet master
than master mind — a distinction that
has worrying implications for counter
terrorism work. His rapid radicalisa-
tion, his youth, his digital savvy, his con-
nections and his viciousness represents
everything that intelligence agencies
worry about when it comes to Isis’s
reach and powers.
Louis Caprioli, a former French intel-
ligence counter-terrorism chief and
European Parliament
expert on Islamist networks, points out
that until just last year Abaaoud
appeared to be a minor figure.
But his links to at least three other
attacks — including the attempt to gun
down passengers on a Thalys intercity
train in August and the aborted raids on
two churches in the French town of
Villejuif in April — show that his influ-
ence had dramatically, and rapidly
grown.
“It seems that Abaaoud has had con-
tacts with each of those who tried the
attacks,” Mr Caprioli said. “Is he simply
a go-between? We don’t know.”
According to two European intelli-
gence officials with knowledge of intelli-
gence on the jihadi, he had become one
of a number of key, charismatic “link-
men” between Isis’ operations in Syria
and its pool of would-be recruits and
returnee fighters in Europe.
But he was far more than a messenger
and is referred to by security officials in
the same breath as Mohammed
Emwazi, Reyaad Khan and Junaid Hus-
sain — who also had a kind of celebrity
status in the Isis command structure
that allowed them to command respect
and foster bonds with other like-
minded fighters from similar back-
grounds, both directly and via social
media.
For Abaaoud, who was already a
leader among his Belgian compatriots,
the turning point came with a grand-
standing interview he gave in Dabiq,
Isis’ glossy propaganda sheet, in Febru-
ary. It positioned him as one of a
number of charismatic young men Isis’s
central leadership in Raqqa had at its
disposal with which it could connect to
networks in Europe. As a result he was
designated a high priority target by the
anti-Isis coalition. His plotting, said one
senior French official, was one of the
reasons why President François Hol-
lande began air strikes in Syria last
month.
Abaaoud’s swift transformation to
jihadi figurehead illustrates how Isis has
completely changed the way intelli-
gence agencies need to address the
Islamist terror threat, according to one
senior British security official. “The
flash-to-bang is now so much quicker,”
he said, referring to the period between
a threat emerging and then crystallising
into a concrete attack.
It took al-Qaeda more than a decade
to build upon the foreign fighter net-
People work works that grew out of the last big jihadi
inside the conflict in Afghanistan in the 1980s, the
damaged official noted. “Isis is doing it in
building where months.”
Abdelhamid Experts say figures like Abaaoud are
Abaaoud, left, the counterpoint to al-Qaeda’s Khaled
the Belgian Sheikh Mohammed — an operational
extremist veteran and strategic mastermind — in
suspected of the new order of global jihad.
masterminding “Khaled Sheikh Mohammed was a
the deadly very skilful plotter. A manipulator with
attacks in Paris, huge ambition, ability and determina-
died along with tion,” said Richard Barrett, former head
his female of counter terrorism operations at MI6
cousin and now consultant at the Soufan
Christophe Ena/AP Photo
Group. “Whereas Abaaoud is something
quite different. He’s motivated, and is
able to motivate people like him, by Isis’
vision. Radicalisation isn’t quite the
‘He’s word for it. He’s offering people a new
life — a track somewhere — a life that
offering can either be in the caliphate, or in
people a paradise.”
The allure of that vision is a powerful
new life — one, as the figures show. At least 1,500
a life that French and more than 500 Belgian citi-
zens have gone to fight for Isis.
can either And it means the availability of other
be in the attractive figureheads for Isis to call
upon in its renewed efforts to perpetrate
caliphate, terror against its enemies is only going
or in to grow.
“This is the future,” said Mr Barrett.
paradise’ “There are many other Abdelhamid
Abaaouds.”
Additional reporting by Michael
Stothard in Paris and Tom Burgis in
Brussels
police powers
to continue
for another
three months
ANNE-SYLVAINE CHASSANY — PARIS
France has approved a three-month
extension of the state of emergency,
giving sweeping powers to police inves-
tigators following the worst terror
attacks in its history.
The exceptional measure, prolonged
until February, was backed by all but
seven votes in the National Assembly
yesterday. It is expected to pass in the
Senate by the end of the week.
“It’s the response of a strong France,
which does not bend and will never
bend,” Manuel Valls, prime minister,
told lawmakers. “It’s the quick response
of a democracy to barbarity.”
The state of emergency, called by
President François Hollande in the early
hours of Saturday as Islamist suicide
bombers targeted bars, the Stade de
France and the Bataclan theatre in
Paris, is the linchpin of wide-ranging
security measures intended to contain
the terror threat on French soil.
The French measures came as Charles
Michel, Belgium’s prime minister,
announced an extra €400m for his
country’s security services. He will rush
through reforms aimed at making it eas-
ier to capture, try and punish terrorists.
Belgium also issued a private diplo-
matic protest to France over what it per-
ceives as the French leadership’s unfair
blaming of Belgium for the attacks, say-
ing that France was attempting to point
the finger at Belgian failings to cover up
its own domestic lapses in countering
Islamic extremism.
International scrutiny has focused on
the Brussels neighbourhood of Molen-
beek, home to at least three of the
attackers and the militant believed to be
the plot’s architect.
Eleven months after satirical maga-
zine Charlie Hebdo and a Jewish super-
market were struck by Islamist extrem-
ists, France is still scrambling to adapt to
the risk of mass terrorism.
The state of emergency was first
enacted in 1955, when France con-
fronted terrorism during Algeria’s inde-
pendence war, and used again in 2005
following the riots that rocked Parisian
suburbs. It allows police officers to
search homes and more easily place sus-
pects under house arrest.
Since Friday night, when Islamist ter-
rorists killed 129 and injured more than
350 in the French capital, authorities
have led more than 400 house searches.
As a result, investigators have placed
more than 60 individuals in custody and
found 75 weapons, including 11 heavy
weapons. More than 110 house arrests

French minister tells EU to ‘get a grip’ on security threats facing Schengen area
ALEX BARKER AND DUNCAN ROBINSON
BRUSSELS
France is demanding that Brussels and
the European parliament “get a grip”
on the security threats facing the bloc
by allowing tighter border checks and
removing barriers to sharing airline
passenger data.
EU home affairs ministers meeting in
Brussels today are preparing to reprise a
series of demands — first made after
January’s Charlie Hebdo attacks in Paris
— to close alleged loopholes and gaps in
the passport-free Schengen zone’s secu-
rity arrangements.
This includes calling on the European
Commission to propose rule changes to
allow EU citizens entering the Schengen
area to be systematically registered, a
measure that is not currently allowed.
Bernard Cazeneuve, French interior
minister, hit out at the EU’s lack of
action, saying the bloc must “shape up”
and regroup in the face of an organised
terror threat following last Friday’s
deadly terrorist attacks in Paris in which
129 people died.
Most politically sensitive is the push
to conclude the fraught eight-year
debate over whether so-called passen-
ger name record (PNR) data stored dur-
ing flight bookings within the EU can be
shared with law enforcement agencies.
It is a touchstone issue for liberal MEPs,
who fear the system could be misused to
discriminate against minorities.
EU officials involved in the negotia-
tions said that talks with the parliament
had borne fruit in recent days, with one
official saying they “made us quite con-
fident we will reach agreement by the
end of the year”.
In the wake of the Paris attacks, the
issue has become highly politicised in
Brussels, with German Christian Demo-
crat Monika Hohlmeier, leader of the
parliament’s home affairs committee,
accusing left-leaning parties of “inviting
terrorists to use loopholes in our safety
and security legislation in order to per-
petrate other terror attacks”.
“For them there is no lesson to be
drawn from the Paris attacks,” Ms Hohl-
meier said of the parliament’s main-
stream centre-left and liberal groups.
“The movements of terrorists have to be
monitored.”
The calls to tighten Schengen security
Inside In-depth
How jihadis force
Isis
Inc.
their enemies to
buy their oil
ft.com/isisinc
rules come against the backdrop of a
more far-reaching debate between
member states, as they respond to acute
pressures from the migration crisis.
In a sign of the drastic measures under
consideration, the Netherlands has
informally raised the idea of shrinking
the zone to a “mini-Schengen”, which
would reintroduce border checks
around a core of western EU member
states.
Thomas de Maiziere, Germany’s inte-
rior minister, yesterday dismissed the
Dutch idea. “Our political goal must be
that the Schengen area as a whole func-
tions,” he said. “Everything else would
just be considerations.”
The commission has been loath to dis-
cuss serious amendments to the code
governing the Schengen zone. Dimitris
Avramopoulos, EU home affairs com-
missioner, said on Wednesday that
Schengen is “not the problem” if its tools
for security were put to full use.
The reforms of border rules backed
by EU ministers are a relatively surgical
change, but reopening the code would
raise the risk of it spiralling into a more
fundamental overhaul.
At present member states have co-or-
dinated an approach to “unsystematic”
checks on EU citizens entering the
Schengen area. However, blanket regis-
tration of the kind security officials are
calling for would need amendments to
the travel-zone’s code.
Draft conclusions for today’s Brussels
home affairs ministers meeting also call
for more rigorous use of law enforce-
ment databases, better intelligence
sharing, and call for the creation of
specific mechanisms to track the move-
ments of foreign fighters returning from
Syria.
have been imposed.
The clause has been widened to make
it more effective, Mr Valls said.
“We’re enlarging the possibility to use
it, not just for proven dangerous activi-
ties, but also for threats stemming from
serious suspicions,” the French premier
said. Police will be able, for example, to
place under house arrest individuals
flagged for “their behaviours or their
acquaintances, their comments or
projects”. The move comes four months
after the French government passed a
law designed to enhance the intelligence
services’ capabilities, particularly for
intercepting communications.
In addition, Mr Hollande has
approved the hiring of 5,000 additional
police officers, 2,500 judicial investiga-
tors and 1,000 customs officers while
also reversing a plan to cut jobs in the
military — measures that government
says will cost an estimated €600m.
Additional reporting by Peter Spiegel,
Duncan Robinson and Jim Brunsden in
Brussels
Friday 20 November 2015 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Friday 20 November 2015

PARIS TERROR

Good-natured bus driver GLOBAL INSIGHT

MOSCOW

Kathrin
who chose the road to jihad Hille

Amimour’s story raises troubling idea that nice guys with decent jobs can be terrorists too Delay a key tactic for
Putin in managing
TOM BURGIS — PARIS

Samy Amimour could hardly have

grief over jet bomb
advertised his intentions more clearly if
he had written them on the side of the

bus he used to drive through the drab
Paris suburb of Drancy.
First, the friendly if reticent young
man departed from his French-Algerian
parents’ secular ways and embraced a
strict version of Islam.
Then, according to French prosecu-
tors, he hatched a plan to travel to
Yemen. It was foiled by the authorities,
who imposed a control order, requiring
him to report to the police each week,
only for Mr Amimour to slink off to Syria
and join the Islamist militants Isis two
years ago.
Last Friday, the 28-year-old and two
fellow jihadis strode into the Bataclan
concert hall in the French capital carry-
ing assault rifles. They slaughtered rock
fans until they were felled by a combina-
tion of police bullets and their own sui-
cide vests.
The Paris attacks, like others before
them, have prompted hand-wringing
about “intelligence failures”. Amimour’s
ability to leave and return to France
unhindered, despite an international
arrest warrant issued when he
absconded to Syria, seems a particularly
egregious lapse. At first glance, he fits
the standard profile of homegrown
French jihadis, raised in crime-ridden
ghettos and consumed by hatred.
But details of his story, and of the limits
of what intelligence agencies can do, sug-
gest a more troubling possibility: that it is
simply impossible to head off every plot,
that others will certainly succeed and
that nice guys with loving parents and
decentjobscanbeterroriststoo.
Outside the squat brick apartment
block where Amimour and his two sis-
ters grew up in Drancy, northern Paris,
there were both fond memories of a
good-natured neighbour and baffle-
ment at what he had become.
Salim, 24, was three years below Ami-
mour at the local school. Amimour’s
parents, he said, were not practising
Muslims. French media reports describe
them as thoughtful and worldly. A short
walk from the family apartment, past
Drancy’s quaint town hall, the Berber
cultural centre where Amimour’s femi-
nist mother helped out is the antithesis
of jihadism. On one wall hangs a paint-
ing of a female form alongside photo-
graphs of Algerian landscapes. An
employee cheerfully explained that the
organisation embraces the liberal values
of the French republic.
Amimour was no zealot growing up.
He dressed like everyone else, played
football, hung out. He gained a bacca-
laureate and a permanent contract as a
bus driver — a markedly better liveli-
hood than the sons of immigrants in
tougher banlieues can expect.
Unlike other French jihadis, such as
the trio that perpetrated January’s
attacks on Charlie Hebdo magazine and
a Jewish supermarket in Paris, or Ismael
Omar Mostefai, his partner in the Batac-
lan onslaught, Amimour was not drawn
into petty crime. “He was intelligent,”
says Salim, who asked for his surname
not to be printed for fear of Islamist
reprisals. Nonetheless, he added, Ami-
mour was easily influenced.
Around 2012, Salim and others
started to notice a change in Amimour.
Unlike other French
jihadis, Amimour was not
drawn into petty crime.
‘He was intelligent,’ says
Salim, who asked for his
surname not to be printed
He took to wearing the djellaba, a tradi-
tional robe, and tried to insist that his
mother veil herself. He grew more
devout, praying assiduously. His father,
speaking to Le Monde last year about his
son’s departure for jihad, recalled his
horror when he first heard Samy voice
admiration for Osama bin Laden.
On Monday, Jean-Christophe Lagarde,
the mayor of Drancy and a friend of
Amimour’s mother, blamed a mosque in
the neighbouring commune of Le Blanc-
Mesnil for radicalising the young man.
At prayers on Wednesday afternoon,
worshippers at that mosque were out-
raged at the suggestion.
“There’s nothing like that here,” said
Ahmed Iftikar, 40, from Pakistan. “That
is not Islam.” Worshippers said Ami-
mour was an infrequent visitor. They
have issued a statement demanding Mr
Lagarde produce proof if he has any. The
local Muslim association says that, far
from recruiting for Isis, it has sought to
spread word of the dangers of sectarian-
ism. Salim does not believe his school-
mate was radicalised there. “It must
have been on the internet,” he says.
Salim remembers the day in October
2012 when armed police smashed down
the door of the Amimour home. French
intelligence believed Samy was bound
for Yemen to seek jihad. His parents told
the AFP news agency subsequently that
it was the “traumatic” experience of
being handcuffed and led away in front
of his family that sealed his determina-
tion to fight alongside Isis.
After his arrest, Amimour was
Bafflement: deemed a terrorist conspirator. Yet the
local residents only check the authorities kept on him
was an obligation to report to a police
walk past the
apartment block station each week. That might seem lax
in Drancy, for a country that has known Islamist
violence for decades. But Louis Caprioli,
northern Paris,
where Sami a former French intelligence counter-
Amimour, below terrorism chief, points to the practical
difficulties of mass surveillance.
left, grew up
Linda Davidson/The “Materially, physically, you cannot
Washington Post via Getty
Images keep a watch on 20,000 people round
the clock,” he says, referring to the rough
tally of everyone the French authorities
consider to have links to jihadi cells, to
hold radical Islamist views or to pose a
threat to national security. Monitoring
one of them for 24 hours requires at
least 18-20 agents, who have to be
rotated to avoid being recognised. To
maintain surveillance over all of them,
France would need to deploy 400,000
operatives — more than three times the
total number of police officers, gen-
darmes and soldiers mobilised nation-
wide in the wake of the attacks. Cher-
ished civil liberties create further con-
straints. For instance, police would have
been prohibited from tapping Ami-
mour’s phone.
“You can protect the Eiffel Tower but
not every restaurant in France,” says
Farhad Khosrokhavar, a sociologist who
has spent two decades analysing Islam
in France and recently interviewed
French fighters returned from Syria. He
foresees deepening strife. “There will be
more violence towards these guys
[young French Muslims] and that will
increase radicalisation.”
W
hen buildings around the world lit up in
the tricolour following last Friday’s Paris
terror attack, it could just as well have
been a tribute to Russia. The country,
which also boasts a blue, white and red
flag, lost 219 of its citizens when a bomb brought down a
Russian passenger jet three weeks ago. Just like France,
which is in shock over the attacks that killed 129 in Paris,
Russia is also a victim of Islamist terrorism.
But in a departure from the scenes unfolding in France,
the Russian people have largely refrained from asking
larger questions about their own tragedy or pressing their
government for answers. This is not just a matter of Rus-
sians’ famous stoicism, say political analysts. It is also the
result of a coolly executed communication strategy
designed to prevent the country’s deadliest air crash from
becoming a political liability for President Vladimir Putin
and his military campaign in Syria.
Delay has been a key Kremlin tactic. Even as western
governments began to express concerns that the October
30 crash was the result of an Isis-planted bomb, the Krem-
lin managed to smother talk of terrorism for more than
two weeks. There was an immediate outpouring of sorrow
in St Petersburg, the doomed aircraft’s destination, with
vigils in the city’s central square and hundreds laying flow-
ers at the airport. Sympathy also welled up on social
media. But it remained apolitical.
“[The] acknowledgment of a terrorist act at the time
when it happened could have and without doubt would
have been perceived as a punishment for the invasion in
Syria,” Gleb Pavlovsky, a
former Kremlin adviser,
said in a radio interview.
Vigils were held
“[That] would have come and sympathy
across much more pain-
fully. And the Kremlin
welled up on social
always tries to soften this media. But it
first strong, painful reac-
tion. The more time
remained apolitical
passes, the more it mixes
with other issues.”
It was only on Monday when Mr Putin changed tack. In a
video released by the Kremlin, Russia’s intelligence chief
was shown reporting to the president that a bomb had
brought down the plane. Mr Putin then declared that he
would step up the military operation in Syria.
The announcement came on the heels of a G20 summit
in which French president François Hollande had declared
his country was now at war with Isis, and the fight against
the groups was increasingly becoming an international
priority. “Putin turned around and acknowledged: yes, the
plane was, after all, blown up by terrorists,” writes Sasha
Sotnik, one of Russia’s most prominent bloggers. “Now —
after the Paris events — that is possible. Because this has
befallen not just Russia . . . and we together with our col-
leagues will fight terror.”
Not all Russians accept this narrative. Some Putin critics
began trading conspiracy theories almost immediately
after the crash. But following years of censorship and prop-
aganda emphasising patriotism, security and strong lead-
ership, such voices are rare. Meanwhile, having dissolved
the pain over the crash in the perception that Russia is now
fighting shoulder to shoulder with its foreign partners
against the evil of terrorism, Mr Putin is charging ahead.
Moscow initially estimated the Syria operation to take a
few months, but now pledges to intensify it. Today parlia-
ment is expected to debate the possibility of a ground oper-
ation, an option so far categorically excluded by the Krem-
lin. “We will pursue [the terrorists] everywhere, wherever
they may hide. We will find them in any spot on the planet
and we will punish them,” Mr Putin said this week.
For Russians, this language is eerily reminiscent of that
with which the president signalled the start of the second
Chechen war in 1999. Having come full circle and once
again put war at the centre of his political agenda, Mr Putin
may sooner or later have to explain what lies ahead. In the
second Chechen war, he promised a quick and decisive vic-
tory. Russia found itself bogged down for a decade.
kathrin.hille@ft.com

Serbia and Macedonia Democratic candidate

Southern Balkan border officials clamp down on migrants
ANDREW BYRNE — BUDAPEST
ALEX BARKER — BRUSSELS
KERIN HOPE — ATHENS
Southern Balkan authorities have
refused passage to thousands of
migrants who are not fleeing wars in a
security clampdown following the
Paris attacks.
Serbian and Macedonian officials on
Europe’s southern flank have begun to
deny entry to certain nationalities at the
main crossing points on the Balkan
migrant trail to western Europe.
The screening began at 6pm on
Wednesday, with officials allowing only
Syrian, Afghan and Iraqi refugees to
cross border points in Idomeni on
the Greek-Macedonian border and fur-
ther north at the Serbian-Macedonian
border.
The measures were imposed after
governments in the region launched an
investigation into whether one of the
suspects in the Paris attacks posed as a
refugee and travelled into Europe via
this route in early October.
Greek authorities said the suspect’s
fingerprints were taken on the island of
Leros but his identity had yet to be con-
firmed.
It is unclear whether the new meas-
ures were more widely agreed and co-
ordinated. One European diplomat said
the restrictions were leaving “hundreds
stranded overnight”, warning the situa-
tion could deteriorate. A European
Commission official declined to com-
ment on the moves.
Aid workers said about 200 people
were being held overnight along Mace-
donia’s northern frontier in container-
type accommodation provided by the
UN High Commissioner for Refugees.
By mid-morning yesterday, about 1,500
people, mostly Iranians and Moroccans,
had been prevented from travelling
north from Greece into Macedonia.
They were waiting at the frontier while
large emergency tents known as “rubb
halls” were being erected nearby.
Countries along the so-called western
Balkan route are looking to provide
shelter for up to 50,000 people as winter
approaches but many are struggling to
prepare usable accommodation.
Between 3,000 and 5,000 refugees are
crossing daily by boat from Turkey to
six Greek islands. A Greek coastguard
official in Lesbos, which receives about
half the daily inflow, said: “We don’t
expect numbers to fall unless the
weather turns stormy.”
The UNHCR in Athens said about 50
per cent of arrivals are Syrians, 30 per
cent Afghans and about 10 per cent Ira-
qis. The others are mostly from Paki-
Only Syrian,
Afghan and Iraqi
refugees are being
allowed to cross
border points
stan, Iran, Yemen, Somalia and
Morocco.
Authorities have struggled to record,
let alone verify, the identities of the new
arrivals. One Macedonian official said
border security was intensifying in the
wake of the Paris attacks, but cautioned
against raising unwarranted fears that
could harm genuine refugees.
“Managing this is a major operation.
Not all migrants are coming to legally
marked crossing points, some use alter-
native passages. We are strengthening
border control and registration but even
that can’t assure 100 per cent accuracy,”
the official said.
Macedonia has deployed regular
army and special forces units on the
frontier. In August, authorities in Sko-
pje, the capital, declared a “crisis
period” on its southern border and had
previously attempted pushbacks with
troops and tear gas.
Aid agencies said hundreds of
migrants were arriving at the site on an
hourly basis yesterday morning and the
mood was reasonably calm.
Alexandra Krause, senior protection
officer at the UNHCR, said: “Right now,
everyone is waiting to see what the
authorities will decide — whether the
decision to only allow these nationali-
ties through is temporary or perma-
nent.”
Serbian officials said fingerprints and
other biometric data of all migrants
arriving in the country were being
recorded. In Macedonia, aid workers
said authorities had started a process of
mandatory registration although they
do not record biometric information.
Clinton defends US Mideast strategy
COURTNEY WEAVER — NEW YORK
Hillary Clinton yesterday called for
Washington and its allies to expand the
frequency and scale of their air strikes
in Syria, impose a no-fly zone and give
more power to the US’s military advis-
ers in the country.
But she ruled out sending thousands of
US troops into Syria if elected president
and largely stood by the policies of Pres-
ident Barack Obama.
Speaking at New York’s Council on
Foreign Relations, the Democratic
frontrunner used her half-hour speech
to articulate and defend the US’s strat-
egy in the Middle East and the policies
that she helped shape as Mr Obama’s
secretary of state.
She said that a “more effective coali-
tion air campaign” would be “necessary
but not sufficient. We should be honest
about the fact that to be successful, air
strikes will have to be combined with
ground forces actually taking back more
territory from Isis.”
Mrs Clinton called on Congress to
“swiftly pass an updated authorisation
to use military force”, for Sunni and
Kurdish forces to have greater involve-
ment in the US-led coalition against Isis,
and for US technology companies to
share more information with the gov-
ernment so that jihadi websites and chat
rooms could be shut down.
In her presidential campaign, Mrs
Clinton faces a difficult balancing act as
she seeks to distinguish her foreign pol-
icy beliefs from those of Mr Obama
without disowning her record as secre-
tary of state — or alienating Democratic
primary voters, who still support the
president’s policies to a large degree.
In her speech, Mrs Clinton took an
indirect swipe at Mr Obama. She said
the US should not be aiming just to
“deter or contain Isis, but to defeat and
destroy Isis”, an apparent reference to
Mr Obama’s comments a day before last
week’s Paris attacks when he claimed
Isis had been “contained”.
But for the most part she stood by the
president, refusing to critique his
remark that Isis was a “JV” — or “junior
varsity” team. She reserved her most
cutting remarks for Republican rivals
who have argued against accepting Syr-
ian refugees in the wake of the attacks.
Friday 20 November 2015
A thriving black market in firearms has made Belgium a launch pad for jihadis, who exploit the country’s
fractured security services. Now officials are scrambling to crack down on the illicit trade.
W
hen Ayoub el-Khazzani
stepped out of the toilet
on the high-speed Tha-
lys train from Amster-
dam to Paris on August
21, he was brandishing a Kalashnikov
rifle and a 9mm pistol. A bloodbath was
only averted after several passengers,
including off-duty US servicemen, wres-
tled him to the ground and clubbed him
unconscious with the muzzle of his
assault rifle.
It came as little surprise that Mr Khaz-
zani had boarded the train in Brussels.
Belgium has become Europe’s prime
launch pad for attacks by jihadis and,
according to many security experts,
their favourite place to pick up guns
smuggled from the Balkans.
Mr Khazzani’s lawyer made it sound
easy to acquire an AK-47 in the Belgian
capital. She said her client found his
Kalashnikov by accident in a suitcase
while sleeping rough in a park close to
Gare du Midi, known to commuters
mainly as the Eurostar terminal. She
added that Mr Khazzani only wanted to
hold up the passengers, not murder
them.
While security experts dismiss the
suitcase story, few doubt Mr Khazzani
acquired his weapons in Brussels.
Friday’s attacks in Paris, which killed
129 people, have turned the spotlight
back on to the Belgian capital — and its
deprived Molenbeek neighbourhood —
as a centre for returning jihadi fighters
looking to deploy the lethal skills they
learnt in Iraq and Syria. In per capita
terms, Belgium has seen more of its
nationals go to the war zone than any
other European country.
After the attacks, president François
Hollande delivered an unusually scath-
ing assessment of Belgium’s role. “These
acts of war have been decided and
planned in Syria, they have been organ-
ised in Belgium and perpetrated on our
soil with French accomplices.”
Other European countries have radi-
cal mosques, active terror cells and dis-
affected, unemployed young men who
are easily recruited by jihadi groups
such as Isis. What Belgium adds to the
mix, analysts say, is a long, troubled his-
tory of lax gun laws and a pedigree of
gun manufacturing, led by FN Herstal
in the Wallonia region. The country has
an unusually high number of people
with technical and commercial exper-
tise in guns.
Nils Duquet, an arms expert at the
Flemish Peace Institute, notes that until
2006, purchasers could buy guns simply
by showing an ID card. The government
only tightened its rules after 18-year-old
skinhead Hans Van Themsche went on a
Crime
Firearms deaths high by
European standards
Shortly before Christmas in 2011,
Nordine Amrani opened fire at
shoppers in the Belgian city of Liège,
killing five people and injuring 125 with
an FN FAL assault rifle and grenades.
At the end of his bloody assault, he
shot himself. The attack had no links
to jihadism, and the authorities
concluded that Amrani was mentally
ill and obsessed with guns.
Although jihadis have cast the
spotlight on Belgium’s gun culture,
Claude Moniquet, a security analyst
and former French spy, stresses that
95 per cent of the weapons are
destined for criminals with no relation
to terrorism.
Gun crimes are hardly a
rarity on the news in
Belgium. In the days after
the terrorist attacks in Paris, a
young man was shot dead in
★ FINANCIAL TIMES
FT BIG READ. PARIS ATTACKS
By Christian Oliver and Duncan Robinson
Belgium’s arms bazaar
racially motivated shooting rampage in
‘We have Antwerp that year, killing two people
seen a trend and injuring one.
By that stage, however, a large pool of
towards guns had built up in Belgium. “We had
micro got a reputation,” says Mr Duquet. “Peo-
ple knew Belgium was a place to go to
trafficking. buy guns.”
You can Jihadis have made the most of the
probably combustible mix. François Molins,
the Paris prosecutor, says the cars
buy an used in last week’s attacks drove
AK-47 “almost in convoy” from Belgium,
where they were hired. At least one of
for around the cars carried Kalashnikov-type
€300 weapons, part of what he describes as
a “veritable arsenal”.
[in the
Balkans]’ Terror for sale
Belgian officials have not said whether
they have evidence that the guns were
acquired in Brussels but, if so, it would
fit a troubling pattern. In addition to Mr
Khazzani’s failed train attack, most of
Europe’s recent high-profile terrorist
attacks have connections to the Belgian
arms market.
Heavily armed In January, Metin Karasular, a resi-
special forces dent of the southern city of Charleroi
soldiers outside who is under investigation for arms traf-
a house in ficking, turned himself in to police after
Molembeek — Dirk seeing pictures of two of the suspects in
Waem/AFP/Getty Images
the January plot in Paris that killed 17,
including 11 at the offices of satirical
magazine Charlie Hebdo.
Mr Karasular has denied selling
weapons to Amedy Coulibaly — the mili-
tant who stormed a kosher supermarket
in the hours after the Charlie Hebdo
assault — and insisted he merely helped
someone buy a car that had belonged to
Coulibaly’s girlfriend. Mr Karasular’s
lawyer says his client voluntarily
approached the police to avoid any mis-
understanding as soon as he saw Couli-
baly and his girlfriend identified on tele-
vision. The girlfriend, Hayat Boumeddi-
ene, is believed to have fled to Syria.
In addition, security officials told the
Financial Times that Mr Khazzani
belonged to the same cell as Mehdi
Nemmouche, a French-Algerian who
killed four people with a Kalashnikov
in an attack on the Jewish Museum
a small town in Wallonia. Police also
had to change a bus route in an
affluent suburb of Brussels after
suspecting that the windows of
one bus had been shattered by a
stray bullet.
According to the UN’s latest data on
homicides by firearms in Belgium, from
2004, the country had a relatively high
death rate by European standards.
The rate of homicides caused by
firearms was 0.7 per 100,000 deaths.
That meant that Belgium’s rate was
similar to those of Italy and Bulgaria —
countries notorious for organised
crime. Britain’s rate hovers around 0.1.
Still, by international standards,
Belgium remains safe. The US rate is
around 3 or 4. In Honduras, it is an
astonishing 64.
Separate sources also suggest that
Belgium has become safer. Data
collated by Gunpolicy.org, a research
site hosted by the University of
Sydney, said 36 people were shot
dead in 2010, down from 95 in 1993
and 70 in 1999. This pulled
the gun
homicide rate
down to 0.33
in 2010.
of Belgium in Brussels in May last year.
The officials added that this cell was
also behind a gun battle in the provincial
Belgian town of Verviers in January,
where two jihadis were shot dead and
one was injured. Those fighters —
reportedly accomplices of Paris suspect
Abdelhamid Abaaoud — had accumu-
lated a formidable stockpile of Kalash-
nikovs, handguns and bomb-making
equipment, and were planning attacks
against Belgium’s police, according to
prosecutors in Brussels. Abaaoud was
killed in a raid on a property in St Denis,
the French government confirmed yes-
terday.
Claude Moniquet, a former French
spy and co-founder of the European
Strategic Intelligence and Security Cen-
tre, said there was mounting evidence
that the Belgian gun trade, once focused
on criminals, has expanded to providing
arms to jihadis.
Mr Moniquet said the black market
for firearms, including gun runners
around Gare du Midi, have seen prices
spike in line with the increased risk of
sales. Just a few years ago, an AK-47 with
300-400 rounds included could be
acquired for about €400. Now, Mr
Moniquet says, prices have risen to
€1,000 to €2,000.
“Trafficking arms to criminals is one
thing; terrorists is another,” he says.
“While arms traffickers can receive sen-
tences of two to three years, if you sell
arms to a terrorist, you can expect 20.”
The Balkans connection
The flow of illegal guns into Belgium
began in earnest in the 1990s amid the
Balkan wars and the fall of the Soviet
Union. Mr Moniquet says a large Balkan
community built up during those years,
when guns circulated freely around the
fragmenting Yugoslavia, and former
communist officials took to trafficking
their states’ vast and often mothballed
munitions reserves.
Mr Moniquet estimates that 90 per
cent of the arms circulating in Belgium
probably originate from the Balkans.
“You have mountains of Kalashnikovs
in Bosnia, Serbia and Croatia,” he says.
When you take in people, you take in
their luggage. Smuggling is a living tra-
dition for these guys.”
Police in the Netherlands have com-
plained that drug gangs have been
increasingly using Kalashnikovs rather
than handguns because of their ready
availability in Belgium.
While security experts argue that
there is a large pool of guns in Belgium
from the Balkans wars, they note that an
“ant trade” continues, with smugglers
bringing small numbers of guns from
southeastern Europe. Shortly before the
Paris attacks, German authorities said
they had stopped a car from Montene-
gro carrying eight AK-47s.
Ivan Zverzhanovski, head of the UN’s
South Eastern and eastern Europe
Clearinghouse for the Control of Small
Arms and Light Weapons, says many
people in the region still like to keep
guns at home. Some Montenegrins quip
that “a house is not a home without a
gun”. The number of unregistered fire-
arms in Serbia is estimated to be much
more than 200,000, and authorities in
the country say it could be as high as
900,000.
Driving north to sell these weapons
can prove lucrative. “We have increas-
ingly seen a trend towards micro traf-
ficking since 2010,” Mr Zverzhanovski
says. “You can probably buy an AK-47
for around €300 [in the Balkans]. It’s
sometimes only small-time criminals,
who can then drive that weapon hidden
in their car to Belgium or Sweden and
sell it for around €4,000.”
Once those guns are in Belgium, Mr
Duquet says one of the country’s main
weaknesses is simply geographical, as
terrorists can evade detection by easily
switching between the jurisdictions of
different security services.
“This is not just Belgium’s problem.
That is an exaggeration. There is a big
arms trade in Paris, Marseille and Ber-
lin, anywhere with high crime rates. But
Belgium is a transit country. It is small
and difficult for police to intervene. You
can drive in from France — drive in and
out in an hour. It is hard for police to
stop a deal.”
In terms of the arms caches held by
jihadis, Belgian authorities find it diffi-
cult to penetrate poor neighbourhoods
such as Molenbeek, home to a large
community of north African origin.
Security officials say it is common for
militant cells to use safe houses, where
weapons are permanently ready for
returning foreign fighters. Such pickups
are quick and hard to intercept.
Co-ordinating the response
Belgium’s status as a smuggling hub
grabbed headlines in July, when the
police dismantled a gun-running ring
around Charleroi and seized dozens of
small arms. The smugglers had been
brazenly faking the signature of the
minister-president of Wallonia on
import documents.
7
Operational centre Many of Europe’s
recent high-profile terrorist attacks
have links to the Belgian arms market
Legacy of war Some estimates say
90 per cent of the arms circulating in
Belgium originates from the Balkans
European plan A far broader effort on
sharing intelligence is needed to stop
arms trafficking, say Belgian officials
Above: Belgian In the month after the bust in Charle-
authorities have roi, Koen Geens, the justice minister,
found it difficult announced that Belgium would take
to penetrate extra steps to break up the smuggling
poorer districts gangs.
such as He has pushed through a measure to
Molenbeek in reactivate the “committee for interde-
Brussels. Below, partmental co-ordination on illegal
a vigil in arms transfers”, which had largely been
Molenbeek on forgotten since 2003. Its restitution is
Wednesday for meant to improve intelligence-sharing
those killed in between the departments of Belgium’s
the Paris attacks often-dysfunctional administration.
Stephanie Lecocq/EPA
Co-ordination is difficult for the
authorities in Belgium, which is divided
along linguistic lines and between
regional and federal administrations.
Brussels alone has six policing zones,
hindering the sharing of information.
Another politician from Mr Geens’
party, Sonja Becq, is proposing
increased phone tapping to tackle arms
traffickers.
One of Mr Geens’ biggest concerns
hinges on supposedly deactivated weap-
ons from massive Soviet-era arms
dumps.
‘You have Technically, deactivated arms are
only meant to be suitable for use as stage
mountains props or collectors’ items. But former
of [guns] in eastern bloc countries have widely dif-
fering standards on what deactivation
Bosnia, means, and many of the weapons can be
Serbia and fixed to fire again. In several countries,
the stockpiles have been looted, most
Croatia. spectacularly in Albania, where more
When you than 100,000 weapons are believed to
take in have been stolen.
Mr Geens stressed that Belgium could
people, you only combat the arms traffickers as part
take in their of a far broader European effort on shar-
ing intelligence.
luggage’ The Belgians acting alone, he says,
could never be “masters of the game”.
Additional reporting by Andrew Byrne
and Jim Brunsden
€4,000
Estimated price of an AK-47 (pictured)
plus its ammunition on the Belgian
black market. It was once as low as
€400 for the rifle plus 300-400 rounds
of ammunition
€300
Possible cost of that gun in the
Balkans. Up to 90% of illegally held
arms in Belgium could be from the
region
900,000
Illegally held arms in Serbia, according to
some official estimates. The exact
number is not known
8 ★
FRIDAY 20 NOVEMBER 2015
Better late then never
for banking discipline
The report into the collapse of HBOS is right to seek punishment
Had the Bank of England’s damning
report on the 2008 failure of HBOS, one
of the UK’s largest banks, been com-
pleted a few years ago, it would have
been very welcome. By naming the sen-
ior executives and board members who
ran HBOS “without due regard to basic
standards of banking” and recom-
mending that several face possible
bans from working in the industry, it
clarifies responsibility.
One drawback is that it took so long
— seven years since the financial crisis
— and another inquiry will be needed
to sanction the individuals criticised. It
is hardly surprising that many believe
that bankers escaped too lightly from
having caused the crisis, and that little
has been done to stop the same disaster
happening again. As the report makes
clear, earlier efforts to investigate the
culprits were mishandled.
A second one is that the regulators
themselves — and the politicians who
established the “light touch” regula-
tory regime for the City of London that
encouraged the HBOS failure — do not
face similar action. Although it
severely criticises the Financial Serv-
ices Authority — now succeeded by the
BoE’s Prudential Regulation Authority
— the official inquiry ends up treating
officials more leniently.
Despite the flaws, it should be com-
pulsory for any banker, or board direc-
tor of a public company, to read this
painful account of how HBOS failed. It
was, as Andrew Bailey, the BoE’s dep-
uty governor, writes, “a simple bank
that nonetheless managed to create a
big problem” by expanding rapidly into
commercial and property lending on
the flimsy foundation of short-term
wholesale funding.
Neither of its two chief executives
following the 2001 merger of Bank of
Scotland and Halifax Building Society
had much banking experience and
they failed to impose any clear risk
Debt burdens weigh on
the emerging markets
Policymakers must be prepared to face up to a substantial threat
Warren Buffett’s magisterial dictum
about the aftermath of financial booms
has now become conventional wisdom:
only when the tide has receded can you
see who has been swimming naked.
In the case of emerging market coun-
tries who have spent years wallowing in
cheap money, however, the issue is
complicated by the changing identity
of the bathers in the water.
Traditional debt busts in emerging
markets, from the Latin American cri-
sis of the 1980s to the Asian financial
turmoil of the late 1990s, generally
used to be centred on sovereign bonds,
usually contracted in dollars and often
linked to the collapse of a currency peg.
But the build-up of debt in emerging
markets over the past decade has been
disproportionately concentrated in the
corporatesector,ofteninlocalcurrency.
Total private sector debt in emerging
markets is now equal to more than 100
per cent of annual gross domestic prod-
uct, higher even than it was in devel-
oped economies on the brink of the glo-
bal financial crisis in 2008.
In fact the problem may be even big-
ger, given that data on private sector
emerging market debt are imperfect.
Some of the cheap money created by
the US Federal Reserve’s quantitative
easing that found its way to emerging
markets came via the “shadow bank-
ing” system, where flows are harder to
record. Many emerging markets have
also borrowed from China’s opaque
development banks to a substantial but
unknown degree.
The classic emerging market crisis
ends with a sudden shock and a severe
economic adjustment — often includ-
ing a debt writedown — that clears the
way for countries to grow again. The
risk today, particularly in countries
such as China with deep-pocketed gov-
ernments, is of a different denoue-
ment: a series of partial short-term
fixes via state interventions such as
discipline. They were overseen by a
board with even less expertise, run by a
chairman who did not encourage open
discussion, which failed to challenge
them or the executives under them.
Meanwhile, the FSA, which was sup-
posed to ensure that the UK’s biggest
banks did not run aground and put the
taxpayer at risk, was broadly deficient
in its job. It operated within the prevail-
ing political assumption of the time
that the FSA “had to be ‘light touch’ in
its approach and mindful of the UK’s
competitive position”. Responsibility
for the consequent disaster was spread
from the bottom of the bank to the top
of the administration.
In theory, the merger of Halifax and
Bank of Scotland should have allowed
the latter to curb a reliance on whole-
sale funding created by a lack of
branches in England and Wales. In
practice, the bank’s executives took it
as a launching pad for a headlong push
into high-yield lending, particularly in
property. Strangely, given the long his-
tory of banking crises, they saw prop-
erty lending as “safe”.
Some lessons of the failures of both
European and US banks in 2008 have
clearly been learnt. Capital and liquid-
ity standards have been tightened and
supervisors are no longer instructed to
defer to bankers because they are
bound to know their trade. These
institutions are structurally sounder,
although it remains to be seen how long
caution endures.
But it remains striking that such a
widespread failure of one institution
and its supervisors should until now
have resulted only in the sanctioning
and fining of one executive — Peter
Cummings, the former head of corpo-
rate banking. That is neither fair nor
prudent. No matter how many worthy
inquiries are made, individual profes-
sional accountability is the surest way
to change behaviour.
bailouts and regulatory forbearance to
keep the show on the road. This risks
the kind of prolonged malaise that
afflicted Japan after the bursting of the
1980s bubble: banks weakened by bad
loans clogging up their balance sheets;
failing companies kept afloat; excess
industrial capacity creating gluts and
threatening chronic deflation.
It is easy to see why the Chinese and
other authorities might prefer avoiding
the debt nettle to grasping it. Although
falling short of the official growth tar-
get would undoubtedly weaken Bei-
jing’s credibility, a full-blown debt cri-
sis and recession, with swaths of banks
and companies going bust, would have
more severe political consequences.
It is already evident from China’s
management of its exchange rate —
and more generally its painful transi-
tion from an export-oriented manufac-
turing model to a domestic demand-
driven service economy — that Beijing
has a habit of trying to make large
moves in a series of small steps, revers-
ing them to avoid short-term disloca-
tions. It would hardly be a surprise if
that mode of behaviour were to emerge
again in the face of a debt crunch. If it
did, long-term growth prospects for
China and emerging markets as a
whole would suffer.
The euphoria surrounding emerging
markets as an asset class started before
the global financial crisis and was rap-
idly resurrected afterwards. That
excessive enthusiasm has now, fortu-
nately, very largely dissipated. But it
was in place long enough to create a
misallocation of capital that could take
several years and many billions of dol-
lars of losses to sort out.
Many emerging market policymak-
ers have a difficult and uncertain
future. They can start by recognising
that they are facing a potentially very
serious problem. The easy good times
have gone; the hard work lies ahead.
FINANCIAL TIMES
Schengen can work with better intelligence
Sir, The Schengen zone is often referred
to as one of the central tenets of the
EU; however, it is not sacrosanct from
a merely ideological point of view but
also from a practical perspective.
I am one of the 83,000 cross-border
workers who travel from France to
work in Luxembourg everyday. Forty-
five per cent of Luxembourg’s
workforce is made up of more than
149,000 workers who travel daily from
Belgium, Germany and France. Since
Tuesday, border controls have been
reinstated on the French motorway
and they have paralysed roads for
more than three hours in the morning
and evening. Many workers have given
up trying to get to work and gone home.
While everyone is patient and
understanding of the need for the
checks in the aftermath of last Friday’s
atrocities, this is clearly unsustainable
in the long term without implications
Envoys of peaceful Islam
have a battle to be heard
Sir, While Georgina Butler (Letters,
November 18) may be expressing a
generally held disappointment that
Muslim leaders are not gaining
coverage for condemning the abuse of
their religion by Isis and other violent
extremist groups, she fails to observe
that such people would be doing so at
grave risk to their own lives — as
witnessed by the fatwa imposed on
Salman Rushdie (whatever you may
think of his books and views).
Nonetheless, Muslim scholars have
and do put their lives at risk to
condemn and argue the case for
peaceful Islam. One example is the
paper entitled “Open Letter to Dr
Ibrahim Awwad al-Badri, Alias Abu
Bakr Al-Bagdadi, and to the fighters
and followers of the Self-Declared
‘Islamic State’” of September 19, 2014,
signed by 117 very brave and
committed peaceful Muslim scholars
and leaders. It can be found at
www.lettertobaghdadi.com.
Publicly berating our good Muslim
compatriots only plays into the hands
of violent extremists such as Isis who
seek to divide our society. Many of us
share her desire to see such
condemnation on the front pages of
newspapers, but perhaps Ms Butler
should put herself in the shoes of such
people before berating their lack of
bravery (as might all of us comfortable
westerners). Would she consider
adding her signature to the letter?
Michael Ledzion
Cambridge, Cambs, UK
Meaning of Islamic terms
lost in fight against Isis
Sir, In “Inside Raqqa” (November 18)
you refer to the tax (or tribute) that
business owners must pay to Isis as
zakah or a religious tax. In actuality,
zakah is more commonly known to
more literally mean “grow in goodness”
and alludes to purifying one’s wealth.
In a modern context, zakah is
understood as giving to charity and is
one of Islam’s five pillars and thus
mandatory for all Muslims.
Though Isis may consider the tribute
it demands from the unfortunate
business owners in Raqqa as “zakah”,
I doubt that such business owners as
well as refugees from the Middle East
and most Muslims worldwide would
Poison pills may
be a perfect male
contraceptive
Mexico City
Notebook
by Jude Webber
Letters
for the economy. Moreover, the efficacy
of checking motorway borders has to
be questionable since there are
numerous smaller roads that cross
countries’ borders which are easily
accessible and are not monitored now,
nor were they in pre-Schengen days.
It isn’t difficult for a criminal to evade
customs or police checkpoints. I live
in a village 300m from the France-
Luxembourg border on a route
nationale. Since the border controls
were reinstated on the motorway
people are simply travelling through
my village where there are no checks.
The knee-jerk reaction of installing
more border controls might be a
crowd-pleaser but it is not a sustainable
policy any more for many Schengen-
zone countries. Your editorial “The
shadow of Paris hangs over Schengen”,
November 17) quite rightly points out
that “Europe needs a common
consider payments to Isis as true
“zakah” and a fulfilment of their duty
to give to charity. Let’s not misinterpret
and denigrate another Arabic term that
plays a vital role in Islam, like so many
already have with “jihad”.
Jamil Batcha
Wanchai, Hong Kong
Deploy social media police
against messages of terror
Sir, I accuse social media over the tragic
events in Paris last Friday, November
13. On Monday, John Brennan, director
of the CIA, blamed the “hand-
wringing” over intrusive government
spying and leaks about intelligence
programmes for making it harder to
identify the “murderous sociopaths” of
Islamic State. I believe it is time to
reopen a clamorous dialogue over
surveillance over social media and
telephone calls. The debate over
surveillance has become too polarised.
The rush to extreme measures after
9/11 was counterproductive, but in
recent years, the sweeping
condemnation of all surveillance by
some critics is an overreaction too.
In the days when Facebook scans
millions of pictures daily to find out
which ones are “inappropriate” or too
“sexually explicit” then removes them
within hours, censuring and cancelling
accounts within minutes, it is
inexcusable not to have that
puritanical fervour employed by social
media to police itself from the
numerous jihadi messages that occur
everyday.
Carlos T Mock
Chicago, IL, US
A question for the gentlemen: would
you take a male contraceptive
pill made with scorpion, spider or
snake poison?
If you answered “not on your life”,
Mexican researchers would like you
to think again. They believe that
substances in the venom of such
creatures could block proteins, which
act as “doorways”, on the membranes
of sperm cells in such a way as to stop
them fertilising female eggs.
Indeed, a poison pill sounds
positively palatable alongside some of
the more unpleasant options under
development or on trial. These
include a polymer gel injected into the
scrotum with the promise of long-
lasting contraception that is “likely” to
be more reversible than a vasectomy.
It is fitting that the quest for a male
contraceptive should be conceived in
the country where the active
ingredient of the female pill was
discovered. Carl Djerassi, the chemist
known as the father of the
contraceptive pill, made his biggest
breakthrough in Mexico, working with
a small team in the early 1950s to
discover norethindrone, the synthetic
hormone that makes the pill work by
mimicking the effects of pregnancy.
Now Alberto Darszon, Arturo
Picones and Arturo Hernández, at
Mexico City’s Autonomous university
(UNAM) believe the unique nature of
the proteins on the membranes of
sperm cells — known as ionic channels
— means there would be no disruption
to the functioning of the rest of the
cells. In short: no side effects.
response to the challenges” it now faces
and “intelligence sharing must be
made to work in practice, as well as in
principle”. If it wasn’t so tragic, the fact
that Saleh Abdeslam was apprehended
by police as he crossed from France
into Belgium on Saturday morning and
then let go on his way, would be
laughable. It is imperative that the
intelligence services in Schengen-zone
countries up their game and ensure
frank and efficient sharing of
information.
We must not allow the anti-
immigration element to take advantage
of this tragedy in order to pursue their
policies. Neither must we allow the
rightwing, anti-immigration element
in France and Belgium to throw up a
smokescreen; the terrorist threat in
Europe is largely homegrown.
Fiona Templeman
Évrange, France
Levy a temporary tax
to aid economic recovery
Sir, Martin Wolf has identified the
critical corporate problem for the
British economy — the excess of
corporate savings as the state and
household sectors are deeply in debt
(“The corporate contribution to the
savings glut”, November 18).
Some years ago in my evidence to a
Treasury select committee inquiry I
proposed a temporary tax on quoted
companies returnable after a period of
sustained corporate investment and
economic recovery. The quoted
corporate sector is always the first to
benefit from the effect of government
stimuli as looser monetary conditions
flow quickly into share prices.
Quantitative easing doubled this effect
but failed to reach the consumer.
Therefore the corporate sector saw no
reason to risk investment with no
obvious consumer demand.
Temporary corporate taxation in
order to reduce consumer taxes and
boost corporate activity (and
government revenue) has a history in
other European countries and should
be applied in this case in the UK.
Rodney Atkinson
Stocksfield, Northumberland, UK
Britain depends on a
wider and dynamic world
Sir, It is absurd for Alastair Forsyth
(Letters, November 18) to say that a
vote for Brexit means walking off the
world stage. In or out of Europe, the
UK is a major player in the world
whether it likes it or not, being, for
example, an even bigger economy
than Russia.
The vast majority of countries in the
world do not have to be members of
the EU to trade with it and the UK does
not have to make its decisions
dependent on the approval of more
than 20 other European nations, many
far smaller, with different legal systems
and economic objectives to itself.
The “Little Englander” mentality
seems to be far more apposite to those
who think that this nation depends on
Europe for its existence than to those
who have the confidence that we, like
other nations, depend on a wider and
perhaps more dynamic world in which
we can more effectively play our part.
John Read
London NW11, UK
Because such an approach would
work only when those cell “doorways”
are blocked, it would also be fully
reversible. That may make it easier to
swallow something made from animal
venom. “If it’s proved to be safe, I’d
take it,” says Fernando González, a 53-
year-old chauffeur. “We have a big
population; there’s a lot of us
Mexicans.”
Others were adamant that venom
was a no-no. “If it’s toxic, forget it. I
wouldn’t dare,” says Pedro Juárez, 60.
Women are also divided on its
merits. “I’d welcome it,” says Rocío
Negrete, who works in marketing.
“And it’s natural, too.” But Flor
Martino, 26, an actress, has doubts.
“An intelligent woman won’t trust a
man who has had to remember to take
a pill,” she says.
Mr Picones, a biologist who worked
for 13 years in the pharmaceuticals
industry in the US, is nevertheless
banking on women to “sell the idea” to
their partners. It could be a struggle in
a country where the government
organises workshops on “alternative
masculinity” to educate macho men
that it is not OK to hit their wives; and
where the teen pregnancy rate is by
far the highest in the OECD.
It is early days. Mr Darszon, a wiry
academic with a long bushy beard, is
an authority on sperm and has been
studying ionic channels for 30 years.
But the male contraceptive research
project has been running only for two,
in partnership with the Mexico City
government’s ministry of science and
technological innovation, which
Friday 20 November 2015
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
Burning more fossil fuels is
no answer to air pollution
Sir, Matt Ridley (Letters, November
18) wants to dispute and dismiss the
role of fossil fuels in most of the 7m
deaths from air pollution worldwide
each year. However, he fails to
acknowledge that the World Health
Organisation noted that coal, as well as
wood and biomass, burnt for cooking
and heating, is a major source of the
indoor air pollution linked to the
deaths of 4.3m people each year. He
also omits any mention of the deaths of
the 3.7m people who are exposed to
outdoor air pollution, most of which is
produced by the use of fossil fuels for
power, industry and transport.
The WHO warns that these figures
cannot simply be added together as
about 1m of these people whose lives
are cut short are exposed to both
indoor and outdoor pollution.
Precision is not possible here but it
does seem reasonable to conclude, as
I did in my letter of November 12, that
“7m people worldwide die each year
due to indoor and outdoor pollution,
mostly caused by the burning of fossil
fuels”. Internal air pollution is indeed a
major issue, as I and many others have
emphasised, but Lord Ridley seems to
want to argue that it follows from this
that we can dismiss the importance of
external air pollution.
Moreover, Lord Ridley is trying to
obscure the key issue: that the
consumption of fossil fuels kills many
millions a year now and in the future
from air pollution and climate change.
Your article about the severe air
pollution problems in New Delhi and
other Indian cities (“Gasping for air”,
The Big Read, November 18) illustrates
this clearly. It is simply absurd to argue
that the burning of fossil fuels is the
best way to reduce air pollution.
We can radically reduce both local
air pollution and greenhouse gas
emissions, and create a much healthier,
wealthier and more productive world,
by making the very attractive
investments which allow us to move
strongly and urgently away from fossil
fuels. It is disingenuous to pretend
otherwise.
Lord Stern of Brentford
IG Patel Professor of Economics and
Government, London School of Economics
London WC2, UK
Proposals for Osborne that
will not hurt the party
Sir, I have two suggestions to make to
Oliver Rowse (Letters, November 17).
First, the chancellor should remove
the 2.5 per cent element of the triple
lock for state pensions. It was included
at a time when inflation was far higher
and is becoming socially decisive.
Second, the inheritance tax threshold
should be reduced and the special
exemptions that apply to first
residences for the assessment of care
home fees should be removed. Why
exempt houses and not productive
assets or other investments? It makes
no economic sense.
The Tory supporters in the shires
and their MPs might complain but it is
hard to believe seats would be lost. One
Nation Toryism would be reinstalled.
Keith Billinghurst
London SE9, UK
COMMENT ON FT.COM
The Exchange
Dambisa Moyo: How an ageing population is
driving the decline in equities
www.ft.com/theexchange
provided 20m pesos ($1.2m) in
funding, initially for three years.
The scientists, based at the UNAM’s
institute of cellular physiology and
institute of biotechnology (IBT), used
much of the money to buy a special
robot, the only one of its kind in Latin
America, Mr Darszon says. It uses
human liver cells, hamster cells and
sperm from rats and paid student
donors to test whether venom can
inhibit the ionic channels.
The team is working its way
through the IBT’s catalogue of 900
worldwide toxins to see if any affect
the two sperm channels that have
precise functions necessary for
fertilisation. They have examined
about 150 so far.
While other researchers are also
targeting ionic channels, Mexico has
the extensive poison catalogue and
many of the animals. “I wouldn’t
venture to say that we are the only
ones using toxins. But in the
[scientific] literature, there has been
no study on toxins,” Mr Darszon says.
Arlet Loza, in charge of screening
the samples, has examined tarantula,
scorpion and coral snake venom so
far. “We have seven or eight
candidates,” she says. “But we can’t
yet say, ‘yes they work’.”
“We’re looking for a needle in a
haystack,” said Mr Hernández. “We
haven’t seen a glimmer of it yet. But
we are confident we will find some
needles in there along the way . . . we
think Mother Nature is wise.”
jude.webber@ft.com
Friday 20 November 2015
Invisible threats that insurers cannot measure
FINANCE
Gillian
Tett
U
ntil recently the civic lead-
ers of Kuna, an Idaho city of
15,200 people, did not
spend much time thinking
about the cost of global ter-
rorism. Now, however, they are doing
just that. As the city prepares to set its
2016 budget, its treasury office has been
debating a new question: should Kuna
spend an estimated $40,000 of taxpay-
ers’ money to buy an insurance policy to
recoup damages if their city is ever hit
by a terrorist attack? Or is that a waste of
funds?
In the event the city council voted
against taking out the policy. John
Marsh, the city’s treasurer, says Kuna is
already partly covered by a county-wide
policy, and the risks in the state do not
necessarily justify the additional
Paris must
shake Europe’s
complacency
GLOBAL POLITICS
Philip
Stephens
T
here is an impulse in
Europe’s political dis-
course, by no means the
exclusive property of the
left, that assumes nothing
bad happens in the world without it
being somehow the fault of the west in
general and the US in particular. This is
the mindset that casts Saddam Hussein
as a victim, Hugo Chávez a hero and
Russia’s Vladimir Putin as a bulwark
against Nato expansionism. The mass
murder of Parisian concertgoers and
Russian tourists may be crimes, but
they are surely also the product of
unprincipled great power intervention.
Listen to Jeremy Corbyn. The leader
of Britain’s Labour party cannot censure
the outrages of extremist jihadis with-
out reference to the supposed crimes of
the US: the siege of Falluja, say, or killing
rather than arraigning Osama bin
Laden. “We have created a situation
where some of these forces have grown,”
was Mr Corbyn’s reflection on the
slaughter in Paris.
There is no shortage of criticisms to be
made of the west — and they do not start
or end with the invasion of Iraq. I find it
shocking that Saudi Arabia is still
OPINION
Tim
Hayward
T
oday we regard the oyster
and lobster as luxury foods,
but it has not always been
so. Oysters have been com-
mercially farmed since the
time of the Romans and have a remark-
able talent: when collected, they close
their watertight shells, trapping seawa-
ter inside. This useful skill doubtless
evolved so they could survive being
beached at low tide. But it meant that
oysters could be shovelled into a barrel,
carted to a city, and left under a bar —
sometimes for weeks — while remaining
alive and fresh.
Lobsters, or similar forms of inverte-
brate, crustacean arthropod have been
around longer than humans and it is
quite possible that we have been eating
them for a very long time. They are also
unique among the food we eat today in
that we often buy them alive and kill
expense. “We don’t consider ourselves a
target of terrorism here in Idaho,” says
Mr Marsh. “It’s rural.” Nonetheless he
concludes: “We are in a changing world
and we may need to look at this further
down the road.”
This shows the degree to which the
shadow of terror — or, more accurately,
reports about terror — is spreading into
unlikely places. It also highlights a big-
ger dilemma for corporate and civic
leaders.
As the world reels from the horror of
the Paris attacks, it casts the spotlight on
a question that needs more debate: can
institutions protect themselves from
the financial risk of terrorism — and do
so in an effective way?
The answer is yes and no.The good
news is that in the past decade the insur-
ance industry in the US and Europe has
made huge progress in establishing a
framework for dealing with traditional
terrorism threats — the types of attack
that occurred in Paris, which kill people
and damage properties.
Such progress was badly needed. The
attack on New York’s World Trade
Center in 2001 resulted in a bill for the
treated as a staunch ally even as it
exports the extreme version of Islam
that informs the murderous credo of the
jihadis. Then there is a welcome
afforded Egypt’s president Abdel Fattah
al-Sisi whose violent repression of the
Muslim Brotherhood opens the door to
Isis. With its oil and autocrats, the Mid-
dle East is a graveyard for anything pre-
tending to be a principled foreign policy.
None of these hypocrisies can be held
up in exculpation of the tyranny of the
self-styled Islamic State. Those who
think it better to explain than condemn
forget that by far the greatest number of
victims of Isis’ crimes are fellow Mus-
lims in Iraq, Syria and, most recently,
Beirut. Or that the caliphate replaces
liberty with theocratic intolerance, sub-
jugates women and murders homosex-
uals. The idea that the west should
shoulder blame rests on a corrosive
moral relativism blind to the essential
evil of those who kill and maim. Indis-
criminate murder is wicked. It demands
unvarnished condemnation. Full stop.
You could ask whether anyone cares
what Mr Corbyn thinks. The Labour
leader’s formative memories are of the
Vietnam war and the nasty campaigns
waged by the CIA in central and Latin
America during the 1970s. He has not
stepped out of the time warp. He will
never be prime minister. Even Fidel
Castro thinks it is time to move on.
Yet Mr Corbyn’s response illuminates
a broader strand of European thinking
— a complacency that takes for granted
the Enlightenment and has sapped the
willingness to defend its essential
Let them eat lobster — it was never the food of kings
them ourselves. They are plentiful, at no
particular risk of extinction, and utterly
delicious, having sweeter and better-
textured flesh than fish. They survive in
a wide range of sea temperatures and
are easiest caught by simple and sus-
tainable methods.
Like oysters, the creatures’ ability to
survive out of water meant they could
be transported far inland and supply
spankingly fresh protein long before
refrigeration made it possible to distrib-
ute other forms of fresh fish. For this
reason, lobster and oysters were often
considered a food of the poor in industr-
ialised cities. Nineteenth-century
prison governors in some coastal states
of the US were forbidden to feed their
prisoners lobster more than a few times
a week, as it was considered a “cruel and
unusual” privation.
At low tide you can still wander along
the muddy banks of the Thames in Lon-
don and see vast “middens” of dis-
carded oyster shells. These mark the
spot of bank-side pubs, where revellers
would consume huge numbers of oys-
ters and throw the shells into the river.
As the deposits are still there after cen-
★ FINANCIAL TIMES
Comment
city initially estimated at $40bn but it
was at first unclear whether insurers
had to pay out for terrorist risks. Mean-
while a bitter dispute erupted in the
insurance world about whether the
event should be defined as one attack or
several. Indeed the risks were so hard to
model that many insurance companies
stopped offering cover at all.
Since then, many legal uncertainties
The bad news is that
cyber terrorism is
presenting a whole new
wave of uncertainty
have been ironed out (at least for tradi-
tional terrorist risks) and governments
have created implicit and explicit back-
stops.
In 2002, Congress introduced a law
guaranteeing that the US government
will absorb catastrophic physical losses
resulting from terrorism; it was
renewed this year. The formula is fiend-
ishly complex — but essentially the
underpinnings. Somehow it is easier to
blame the west than to admit that there
are those for whom freedom, tolerance
and the rule of law are natural enemies.
We saw this when Mr Putin over-
turned the continent’s postwar security
order by sending his army into Ukraine.
The reaction of many on the right as well
as the left was to mutter that the fault
lay with Nato’s decision to welcome the
new democracies of eastern and central
Europe.
There are many more who have
decided in the wake of Edward Snow-
den’s revelations that the principal
threat to Europe’s freedoms comes from
the electronic “snooping” of domestic
intelligence services rather than from
jihadis wielding Kalashnikovs and
wearing suicide vests. Hopefully the bal-
The idea that the
west should shoulder
blame rests on a corrosive
moral relativism
turies we can assume London’s dock
labourers were ordering oysters at a far
greater rate than the wealthiest occu-
pants of the City can afford to today.
As industrialised cities developed,
what we would now call “supply chains”
were created and preserved, packaged,
tinned and eventually chilled products
became the more convenient diet. Pres-
tige restaurants, though, never fell out
It is only a matter of time
before they acquire a taste
for human flesh, so we need
to acquire a taste for theirs
of love with food so fresh that it still
moved, and developed dishes that
remain in the canon today. It is hard to
go wrong with lobster Newburg (egg-en-
riched cream and cognac), lobster a
l’armoricaine (tomato, tarragon, shal-
lots), or the king of the lobster dishes,
first created by Auguste Escoffier in
about 1880. Lobster Thermidor is
superbly rich and massively compli-
insurance industry is expected to
absorb the first $37.5bn of losses from an
attack, after which the government
steps in.
And that, in turn, has persuaded US
insurance groups to offer cover to busi-
ness and government entities — such as
the officials in Kuna — and kept terror-
ism insurance fees relatively stable.
But the bad news for corporate and
civic leaders is that cyber terrorism is
presenting a whole new wave of uncer-
tainty. Until now, when the intelligence
community — and the insurance indus-
try — have tried to measure the cost of
terrorism, they have tended to focus on
physical attacks. This week, for exam-
ple, the Institute for Economics and
Peace, a think-tank in Australia, pub-
lished a report suggesting that acts of
terror cost about $52.9bn globally last
year, the highest tally seen since 2001.
That calculation refers almost exclu-
sively to physical assaults, however,
since cyber terrorism has hitherto not
been very visible.
But the risk of cyber terrorism is ris-
ing fast. And the problem is that, if an
attack did happen, it is unclear how that
ance will shift somewhat in the after-
math of the Paris attacks.
The original sin was the assumption
that the end of the cold war did indeed
mark the end of history. The compla-
cency straddled the boundary of eco-
nomics and politics. Liberal markets
would create permanent prosperity,
while political pluralism would become
the default system of governance. The
international order would be remade in
the image of European multilateralism.
The first of the illusions was shattered
by the financial crash of 2008, but gov-
ernments and electorates have held on
more tenaciously to the idea that
democracy is the natural destination of
politics. When things have gone wrong
— the terrorist attacks of al-Qaeda and
now Isis and Russia’s revanchism — the
instinct has been to treat them as excep-
tions. The curtains, though, have now
been torn open, not least by the influx of
refugees fleeing violent chaos on
Europe’s periphery.
What is required is a readiness to
fight. This means a lot more than simply
sending more warplanes to attack Isis in
cated. It is also delicious, combining a
cream sauce enriched with eggs, sherry
and mushrooms with a gratin topping.
While some restaurants still feature
oyster and lobster as premium dishes, it
is not unusual to be offered oysters,
fried or baked, as affordable starters —
something never seen a few years ago. In
the run up to Christmas, the discount
supermarket chains Lidl and Iceland are
offering frozen lobsters for under £5
(they make a great Thermidor).
Lobsters and oysters are robust crea-
tures and they breed vigorously. We
have artificially kept them as prestige
foods, so it is unsurprising that their
price is now dropping.
Now that previously aristocratic
salmon is the go-to protein at every cor-
porate event or provincial wedding, per-
haps we should wonder at what is next.
The answer may again come from under
the sea. In the 1930s Josef Stalin ordered
the introduction of the red king or Kam-
chatka crab to the Barents Sea to create
a new source of cheap protein for Soviet
workers. Eventually the crabs, indige-
nous to the northern Pacific, grew to
accept their warmer home, breeding
cost might be handled. In the past cou-
ple of years the insurance industry has
started to offer policies against cyber
hacking in a general sense; surveys sug-
gest that between 30 and 50 per cent of
large American companies now have
such policies in place.
But cyber terrorism is shrouded in
legal uncertainty, and the costs of an
attack are hard to model. There is also
deep uncertainty about what role the
government might play in America and,
most crucially, whether the federal
guarantee could be invoked if an attack
occurs.
This suggests that there is now an
urgent need for Washington to develop a
clearer framework; indeed, the whole
tangled question of who should pay for
cyber defences is badly in need of
greater debate.
But sadly this may not happen until a
big terrorist cyber attack hits. In a
hyperconnected world, cyber terrorism
could deliver damage on
a whole new level, be that in Paris,
Washington or Idaho.
gillian.tett@ft.com
its strongholds, though the case for
fiercer military action is a strong one.
Fighting means recognising that the val-
ues that form our societies cannot be
taken for granted; that the postmodern
order imagined after 1989 is at very best
some way off; and that even as they con-
front the enemies of freedom and toler-
ance European governments must
address deprivation and marginalisa-
tion within their societies.
This in turn demands a willingness to
admit there will be costs. But then any-
one who has glanced at the history of the
20th century will know that today’s lib-
erties came at a price. Nor should we
imagine that governments will not have
to make ugly compromises — not least
in Syria — if some order is to be restored.
Above all, it is time for Europeans to
celebrate what they have built and rec-
ognise it is under threat. The streets of
Paris this week have seen a heartening
resolve not to be cowed by the murder-
ers. If Europe does not stand up for its
values, who else will?
philip.stephens@ft.com
prolifically, moulting more regularly
and growing up to 2m in leg span.
They were so successful that they
began migrating across the ocean floor
in vast packs. Spider crabs the width of
cars are, even now, moving along the
bottom of the North Sea towards the UK
coast, eating everything in their path. It
is the stuff of science fiction movies.
At the moment, Kamchatka crab is a
delicacy in London restaurants, where
the ability to select a live, angry, metre-
wide creature from a tank and have it
killed and brought steaming to the table
is a spectacle that delights the super
rich. But the crabs have reached the
Norwegian coast. It is only a matter of
time before they come ashore here,
lurching up the beach having acquired a
taste for human flesh — so we need to
start acquiring a taste for theirs, fast.
King crabmeat is superb, with a meatier
texture and sweeter taste than its
skinny little capitalist cousin. Surely,
government must intervene. Drop the
prices — we need to eat them before they
eat us.
The writer is an FT magazine columnist
9
America’s mixed
maritime signals
in the South
China Sea
OPINION
Euan
Graham
W
hen a US Navy des-
troyer sailed past the
Spratly Islands in late
October, much of Asia
breathed a sigh of relief.
The administration of President Barack
Obama had put deed to the insistence of
Ashton Carter, defence secretary, that
the US “will fly, sail and operate wher-
ever international law allows”. A line
had been drawn in China’s “Great Wall
of Sand”, demonstrating US freedom to
operate at will in the South China Sea.
Relief has since turned to puzzle-
ment. As details have emerged, they
have given rise to confusion over what
the USS Lassen did and did not do. The
US has been accused of sending mixed
signals. And the administration’s wall of
silence on the mission has not helped.
The US continues to express concern
over Chinese intentions. Mr Obama said
in Manila on Wednesday: “We agree on
the need for bold steps to lower ten-
sions, including pledging to halt further
reclamation, new construction and mil-
itarisation of disputed areas in the South
China Sea.” But the Lassen’s mission
may in fact have strengthened Beijing’s
legal hand by tacitly acknowledging a
territorial sea around one of its new arti-
ficial islands.
We know it was warned not to enter
“Chinese waters” as it passed within 12
nautical miles of Subi Reef, a formerly
submerged natural feature on which
China has built an artificial island. We
know its crew talked chow with their
Chinese naval shadows. But vital specif-
ics remain unclear, such as which other
small features the destroyer passed in
As details have emerged,
they have given rise to
confusion over what exactly
the USS Lassen did
the Spratlys and how it operated as it
steamed by. Unnamed US government
sources have insinuated that the war-
ship invoked the protocol of “innocent
passage”. This is a subdued mode of con-
duct that applies to a state’s territorial
sea, which under the UN convention on
the law of the sea extend to 12 nautical
miles.
If there was strategic logic to the oper-
ational caution of the Lassen’s transit, it
could either be to probe China’s res-
ponses; or it could be that it was scripted
in such a way as to mollify hawks at
home while keeping Sino-US relations
on track during east Asia’s summit sea-
son — with an eye on securing a global
climate-change agreement with China’s
co-operation in Paris. Or perhaps it was
meant as a ladder for Beijing to climb
down from its assertive stance and to
clarify the nature of its claims within the
disputed “nine-dash line”.
The point is we do not know. What-
ever signals the US was trying to send
have been lost in translation. Reports
that a US B52 bomber subsequently flew
near the Spratlys have not dispelled the
ambiguity surrounding US intentions.
The US is not helped by the fact that it
has not ratified the convention, even as
it asserts the rights that treaty defines.
This is the element of exceptionalism
that undercuts Washington’s efforts to
claim the moral ground in the South
China Sea. The US Navy adheres closely
to the convention — but nothing short of
ratification by the Senate will satisfy in
the court of world opinion. Hawkish
critics of Mr Obama’s foreign policy
must grasp that US moral leadership in
defence of the international rules-based
order begins at home. Senator John
McCain, a Republican supporter of rati-
fication, has formally requested clarifi-
cation about the Lassen’s mission from
Mr Carter.
When Washington finally speaks, it
should eschew the language of innocent
passage, which the US Navy is under no
obligation to observe anywhere in the
Spratlys. Beijing has not legally defined
its territorial claims in the archipelago,
despite President Xi Jinping’s recent
incantations about the territories being
“Chinese . . . since ancient times”.
South-east Asian countries that claim
territory in the area have not done so
either. Until such time as this changes,
there is no need for the US Navy to con-
cede its lawful right to operate normally.
That should not be seen as a brazen
provocation to China or anyone else.
The writer is director of the international
security programme at the Lowy Institute
10
Slick go-betweens at the Inns of Court
WORKING LIVES
Emma
Jacobs
Modernisation may bring
big changes to barristers’
clerks but they can still
help make or break their
employers’ careers
A
nthony Trollope’s 1862
novel Orley Farm includes a
vivid description of Mr
Crabwitz, the clerk to bar-
rister Thomas Furnival.
This was a “gentleman who . . . consid-
ered that no inconsiderable portion of
the barrister’s success had been attrib-
utable to his own energy and genius”.
More than 150 years later, says Profes-
sor John Flood, who has written one of
the only books on the subject, there are
many clerks who could say the same.
Essentially, their job is to manage the
diaries, workloads and the careers of
barristers. They also sort out the money
side, negotiating fees and delivering
invoices.
Scott Baldwin, author of a blog, Not a
Barrister, likens the role to being a nurs-
ery nurse. “The vast majority of barris-
ters spend half their time worrying they
won’t pay the mortgage, the other half
thinking they’re God.”
The role of a clerk is much like an
agent, making sure the self-employed
barristers have a good supply of cases to
plead in court. Mr Baldwin, senior clerk
at St Mary’s Chambers in Nottingham,
says barristers are “inherently paranoid
all the time”. He cites the late novelist Sir
Female entrepreneurs get a helping hand in a changing Japan
The number of women
leading businesses is still
tiny, says Kana Inagaki
Maria Mercedes Corrales knows well
the challenges of navigating the corpo-
rate world of Japan as a female boss.
When she took over the struggling
Japanese operations of Levi Strauss in
2001, she vividly recalls how some of
her employees and clients refused to
speak to a female president. That wall
of silence came down gradually as she
turned around the company’s perform-
ance.
“When you are a woman you are put
to a test,” she says. “You are measured
by the results that you deliver.”
Backed by her experience — which
later included a stint heading the Japa-
nese unit of Starbucks — Ms Corrales,
from the Philippines, has returned to
Japan for a new role as mentor to a
group of budding female entrepre-
neurs. “A lot of things have changed. It
is like a renaissance in Japan for
women,” Ms Corrales says.
Much of the change is driven by
Terry Pratchett’s “neurovores” — peo-
ple who live by their nerves — as an
appropriate description.
As clerks gain experience and stature
they can both help and guide a barris-
ter’s career, as they talk up rising stars
and advise them on when to apply to
take silk (ie, rise to the eminent status of
Queen’s Counsel, or QC).
Periodically, the last rites are read on
the clerk’s job. There are probably fewer
than 2,000 barristers’ clerks in England
and Wales. And yet the job survives and
thrives. One clerk who left the business
a decade ago, recently returned to his
former chambers and was shocked. “My
God, it was like I’d popped out for a
sandwich. Nothing had changed.”
However, the job has been affected by
technology as well as the modernisation
and globalisation of the legal profession.
As with many administrative roles,
Prof Flood, director of the Law Futures
Centre at Griffith University, Queens-
land, as well as author of Barristers’
Clerks: The Law’s Middlemen, says the
work has been transformed. “There is
the increasing use of technology in the
job — electronic diaries, billing.” Previ-
ously barristers’ clerks would amend a
thick paper diary, wearing out erasers to
move appointments skilfully. At the
same time, Prof Flood says demand for
skills such as marketing and networking
means clerks must be slicker than ever.
Brian Lee, chair of the Institute of Bar-
risters’ Clerks and senior clerk at 7
King’s Walk chambers, says the expan-
‘Barristers have no real
concept of life outside
those walls, which is why
they rely on sharp,
streetwise clerks to run
their busy lives’
prime minister Shinzo Abe’s push for
more women to be in the workforce. If
he succeeds in closing the gender gap in
employment, Goldman Sachs estimates
it would boost Japan’s gross domestic
product by almost 13 per cent.
Despite this, efforts to promote more
women to senior roles have still to
inspire women to become entrepre-
neurs. In the last financial year, only 16
per cent of new businesses were started
by women, according to Japan Finance
Corporation, the government-owned
bank.
“One of the things [Japanese women]
face is access to women role models
both in leadership and mentoring in dif-
ferent skill sets,” says Rena De Sisto,
international corporate social responsi-
bility executive at Bank of America. She
heads a global mentoring programme
for women leaders co-organised with
Vital Voices, a non-profit organisation
for empowering women.
When the programme, launched in
2012, held an event in Tokyo last month,
70 women applied for 11 slots. Ms Cor-
rales cancelled her travel plans to apply
for the role of mentor. She is now coach-
ing managing director Yuki Uchida, 32,
★ † FINANCIAL TIMES
BUSINESS LIFE
sion of commercial chambers since the
1990s and the establishment of offices
overseas, particularly in Singapore, has
demanded a more sophisticated opera-
tion. Initially, a new job — practice man-
ager — was created. People with man-
agement expertise were sought: former
army officers and former solicitors
entered chambers. Yet ultimately,
clerks won the day by embracing these
professional skills.
Prof Flood says clerking is largely
learnt on the job. “This is a job based on
craft and apprenticeship . . . learning
from a master. This is why the ‘old
school’ clerks are still in high demand.”
Carolyn McCombe is chief executive
at 4 Pump Court, where she heads the
clerks and administration team. Her
path to the role was unusual as she read
law at Cambridge university and
became a partner at a solicitors’ firm. It
was important to learn to be a clerk, she
says, although she did not start at the
very bottom, by pushing trolleys or pho-
tocopying. “It is a bit like policemen:
you need to have been on the beat to
understand what policing is all about.”
While automation is likely to replace
some legal jobs, Mr Baldwin believes it is
more likely to threaten the UK’s solici-
tors — who have a less theatrical role —
than barristers and their clerks. Prof
Flood, however, sees no one as immune.
At a time when higher education is
expanding, this is one of the few white-
collar jobs with long-term prospects
open to school-leavers. One former
clerk says it was a good education: he
did anything from making tea to acting
as a pallbearer at barristers’ funerals.
Mr Baldwin, raised in Moss Side in Man-
chester, says he fell in love with the job
from day one. “It was another world.
People knew Latin and poetry and
drank wine.”
One former clerk suggests that barris-
ters’ typically privileged background is
why they need clerks: “Barristers live in
Maria Mercedes in shaping her business strategy at
Corrales, right, Re:public, which supports innovation in
mentoring Yuki companies and cities.
Uchida “We’re at a phase many start-ups
face,” Ms Uchida says. “We need to
think about where we want to take the
company from here and how much we
want to expand.”
Tamiko Hayashi, founder of Social
Concierge, a non-profit organisation
promoting sustainable lifestyles with
online magazines and shops, says the
hurdle for her is the lack of know-how
in gaining access to capital. Through the
programme, she has learnt how to
approach bankers to finance the expan-
sion of her business.
a bubble: boarding school, then Oxford
or Cambridge, then spend the rest of
their lives in the inns of court. They have
no real concept of life outside those
walls, which is why they rely on sharp,
streetwise clerks to run their busy lives.”
Mr Baldwin disagrees: while some
have led a closeted life, the bar has
changed and become less elitist, he says.
David Hockney is the senior clerk in
Monckton Chambers, which specialises
Kelly Walker
(top) joined
in European, human rights and compe-
tition law. The view over Gray’s Inn’s
Monckton after lawn is reminiscent of an Oxbridge col-
a suggestion
from a
lege quad. He joined 25 years ago, fol-
lowing two uncles who worked as clerks.
jobs agency; For the first few years it was “hard
Brian Lee, graft”, he says. “Not all youngsters can
(above) chair of look beyond that.” As a result, he has
the Institute of tried to give clerks clear career paths.
Barristers’ Another change in clerking has been
Clerks the arrival of women. Today they make
Rosie Hallam
up 15 to 20 per cent of clerks, according
to the IBC. Ms McCombe says: “It is inev-
itably blokeish, as there are an awful lot
of blokes. However, I have not encoun-
tered sexism or barriers; in fact quite
the reverse.”
Kelly Walker, a 22-year-old clerk at
Monckton, had intended to become a
legal secretary until a legal recruitment
agency suggested clerking. “It’s not
something that anyone at school advises
you to do,” she says. Usually, she notes,
“you hear about it through your family”.
In fact, her sister came for work experi-
ence, and is now keen to follow in Ms
Walker’s path.
If so, she may be safest to opt for bar-
risters working on commercial cases.
Recent cuts to legal-aid funding, as part
of the UK government’s austerity drive,
means that “crime doesn’t pay for law-
yers”, says Mr Lee. “Many of the smaller
criminal chambers will shrink, includ-
ing the number of clerks they hire.”
emma.jacobs@ft.com
Twitter: @emmavj
Analysts say the low level of entrepre-
neurial activity in Japan also stems
from attitudes towards start-ups,
including the fear of failure. A report
last year from the Global Entrepreneur-
ship Monitor, which analyses early
stage start-up activity, respondents in
Japan expressed a fear-of-failure rate of
54.5 per cent compared with 43 per
cent in the UK and 34 per cent in the
US.
As part of her mentoring role, Ms
Corrales also sought to ease Ms Uchida’s
fears about her prospects and her capa-
bilities. “You have to believe in yourself.
We are put on the job because people
think we are capable of doing it,” she
says.
Looking back, Ms Corrales says she
would not have accepted her jobs at
Levi Strauss and Starbucks had she
been offered a No 2 position: “When
you are at the top, you set the tone in
your organisation.”
Rewards can also override the fears of
sitting at the top. In Ms Corrales’ case,
those rewards were the friendships she
forged with her initially sceptical male
colleagues at Levi Strauss, that are now
a decade old.
Personal technology
Mark One/ Thermos
‘Smart’ cup and bottle quench
thirst you never knew you had
TIM BRADSHAW
Water is our simplest
nutrient. It requires no more
preparation than turning on
a tap. We know when we
need to drink it because we
feel thirsty. Fully
functioning adults tend not
to forget to drink enough
water to survive.
Yet companies old and new
want to convince us that
humanity has a drinking
problem. New “smart cups”
from Thermos and San
Francisco-based start-up
Mark One use an array of
sensors that beam users’
real-time data about water
consumption to a
smartphone app. But does
such a simple act as drinking
really need all this tech?
Being well hydrated can
make us feel more alert and
focused, as well as boosting
our immune system. The
apocryphal advice of eight
glasses of water a day is
actually a little less than the
2.7 litres recommended for
women and 3.7l for men by
the US Institute of Medicine.
But, as the institute
concluded: “The vast
majority of healthy people
adequately meet their daily
hydration needs by letting
thirst be their guide.”
Pryme time
Nonetheless, Mark One
believes its algorithm can do
better than humans.
When setting up its $100
smart cup, called Pryme
Vessyl, I told the app my
age, weight, height and
sleeping hours. As an
optional extra, I also gave it
access to my iPhone’s
activity and workout data,
collected through fitness
trackers such as Apple
Watch or Jawbone’s UP.
Pryme Vessyl crunches
this data in the cloud to
create what it says is a more
personalised and dynamic
hydration target. But rather
than tally this in regular
litres or ounces, it uses a
curious metric of its own
invention, also called Pryme.
This obscurely calculated
score is tallied up on the app
and also appears as a thin
strip of white light on the
outside of the cup. The line
lights up when you tilt the
cup, ending in a blue dot if it
judges you are sufficiently
hydrated at that moment.
This light is an elegant
touch on the otherwise
minimalist white cup, which
at least is not too brash
about its “smarts”. The white
matt plastic exterior is
pleasant to hold and
comfortable regardless of
whether the cup contains
iced water or hot tea.
However, the glass
interior makes the cup
pretty heavy, while its
“splashproof” sliding cap
does not prevent drips and
leaks. This makes it
unsuitable for use during
vigorous exercise, when
hydration monitoring might
be most useful.
Planet of the apps
What they are
Waterlogged and Daily
Water apps for iOS
Why you should try
them
To track your hydration
without splashing out on a
“smart cup”, there are
Friday 20 November 2015
My main incentive for
maintaining Pryme became
to silence the constant nag
of push notifications that
arrived whenever I was short
of my goal. My phone often
pinged when I had just taken
a sip with urges to take
another, to “get you to the
next level”.
Mark One has raised
millions of dollars in venture
capital to develop a more
ambitious cup that claims to
track the type and brand of
drink inside, including
calorie and caffeine content.
However, that product has
had more than a year of
delays because of problems
with sensor reliability, with
no shipping date in sight. In
the past few months, the
company has suffered the
departure of its heads of
health, design and software,
as well as founder and chief
executive Justin Lee.
Thermos 2.0
Thermos’s $60 Smart Lid
device is more utilitarian. Its
app simply tracks how much
water is in the bottle (in case
you can’t see through its
transparent side), its
temperature (in case
holding the cup was
insufficiently precise), how
much water you have
consumed and — for fans of
pointless statistics — how
many minutes you have
spent drinking and how
many sips you have taken
that day. You can set your
own water consumption
goal (in plain old litres), with
a bar tracking your progress,
and the total amount drunk
can also sync to Fitbit’s app.
The plastic bottle and its
lid are light and watertight,
which at least makes it more
practical than the Pryme.
But I found the data transfer
unreliable. On one occasion,
it told me I had spent 1,143
minutes taking one sip, to
consume 7ml of water.
Verdict
The human body comes
with robust hydration
sensors — based on input
and output — pre-installed
at no cost to the user. We
may all benefit from the
occasional reminder to drink
more water, but there are far
cheaper ways to do that
than these devices.
Amid the ongoing
“internet of things” hype,
the argument that a cup or
bottle must be “smart” just
does not hold water.
several cheap apps.
Waterlogged’s basic
features, including
recording each glass or
bottle drunk and a daily
reminder, are free. Paying
$3.99 unlocks extras such as
more notifications and the
ability to share data.
Daily Water offers some of
those features for free but
includes ads, which you
pay to remove. Logging a
glass of water is faster on
Daily Water, but neither are
particularly hard to use.
Friday 20 November 2015 ★ FINANCIAL TIMES 11

ARTS

A smart, spirited reach the end, which is also the begin-

ning. Love is quite something: sad and
smudgyasafarewellkiss.
The black-and-white showcase from

heroine for the the young first-time director is all but a

genre of its own, but Mexico’s Alonso
Ruizpalacios infuses his debut Güeros
with verve and imagination. After a diz-

21st century zying red herring of an opening, he

leaves us with Tomás (Sebastián
Aguirre), a teenage tearaway sent by his
despairing mother to live with older
brother Federico (Tenoch Huerta) in
Mexico City. There, the straight and nar-
FILM row is evaded; what unfolds is an urban
odyssey and the search for a lost
Danny rock’n’rollsinger.
Woozy and urgent in the same
Leigh moment, Güeros isn’t shy in its devotion
to the French New Wave, but its style has
substance: despite being brothers,
Tomás is light-skinned (for which güeros

A
nd so, it’s goodbye. After
three previous films, more
than $2bn at the box office
and a lifetime in make-up
for Stanley Tucci, The
Hunger Games draws to a close with
Mockingjay — Part 2. Denied the indul-
gence of an early recap, even fans may
need a moment to reorientate. (Anyone
thinking of just jumping in now would be
best advised to find some kind of online
course.) In our last meeting, the fearless
Katniss Everdeen (Jennifer Lawrence)
wasattackedbyhersometimeloveinter-
est Peeta (Josh Hutcherson), brain-
washed by the barbarous Capitol (heart
of the post-apocalyptic North America
now renamed Panem). Now, her throat
is a mesh of bruises; when she tries to
speak, there is silence. She will have to
findhervoice.
The sound you hear when she does is
an industrial-size narrative arc being
loweredintoplace.Whiletheforeground
is given over to a climactic assault on the
Capitol, the finale also sees Katniss — the
backwoods girl who started a revolution
— taking charge of her own fate in the
face of not just tyrants, but also her own
side’sPRandmarketingstrategy.
For all its heroine’s personal growth,
still more sharply drawn is the hall of
mirrors of power and propaganda, the
media battle between the flailing Capitol
and revolutionaries already jostling for
place. For a CGI-stuffed blockbuster
franchise aimed at 14-year-olds, this was
always a smart one, its real life echoes at
oncegrimlyspecificandusefullyvague.
Natalie Dormer and Jennifer Lawrence in ‘Mockingjay — Part 2’. Below: Karl Glusman and Aomi Muyock in ‘Love’
The series’ vast global popularity may
well have been helped by the discreet
replacement of humour (too prone to
not travelling) with splashes of flamboy-
ance: the usual palette of murk and
sludge is brightened here by a Capitol
shopkeeper surgically remade to resem-
ble a tiger. The cast admire her
implanted whiskers as if they were a
new,reasonablypricedblusher.
Since the first, hyperactive film in
2012, the series has had a regular direc-
The Hunger Games: tor in Francis Lawrence. It’s hard not to
Mockingjay — Part 2 wonder what might have been in the
Francis Lawrence hands of a war movie virtuoso such as
AAAAE Kathryn Bigelow, but sturdy compe-
tence is no crime. A set-piece in which
Love Katniss is pursued by a monster wave of
Gaspar Noé oil has the raw thrill of good action cin-
AAAAE ema and enough metaphorical oomph to
keep the theorists busy for years. In the
Güeros end, for all the high-end support of the
Alonso Ruizpalacios late Philip Seymour Hoffman and the
AAAAE flawless Donald Sutherland, these
strange, important films belong to Jenni-
The Dressmaker fer Lawrence: unsmiling, unbreaking,
Jocelyn Moorhouse JoanofArcfortheSnapchatgeneration.
AAAEE In a different era, Sutherland was part
of the elaborate tease of Don’t Look Now,
his famous sex scene with screen wife
Julie Christie inspiring endless debate as
to whether or not that was actually act-
ing. No such mystery in Love, the new
film from director Gaspar Noé. We open
with a long tableau of mutual masturba-
tion, the first of several clearly unfaked
couplings. Ah yes, you often think, that
would have to be real. Yet even the most
single-minded viewer will ultimately
find the sex less compelling than the
messthathappensinbetween.
After that first encounter, we find our-
selves in a cold shower of Parisian
domesticity, the bleary Murphy (Karl
Glusman) waking to his partner, infant
son and a mood of glum self-loathing. It
isNewYear’sDay.
But we’re not yet destined for kitchen
sink realism. Soon, Murphy seeks refuge
in his memories: the key, Noé-ishly, a
lump of opium kept in a VHS case for
I Stand Alone, the director’s own scabrous
debut. So begins a reverie of an earlier
life, and another girl, a guarded brunette
namedElectra(AomiMuyock).
She, we realise, was the One, since
got away. At first the sweetness is irre-
sistible. “We’re going to be the greatest
couple in the world,” he declares. Soon,
though, Murphy reveals himself as a
ruinous dolt, and things begin to spoil:
“Secrets make you darker,” Electra
warns, as amid a string of lurid sexual
adventures, jealousy and paranoia scut-
tletherelationship.
Noé’s liking for mischief dies hard:
Love does, for instance, feature some
potent use of 3D (I will only say you may
instinctively duck). But his eye for the
gorgeous extends to more than just flesh:
a great arranger of actors, he finds Mur-
phy and Electra at their most blissed-out
fully dressed and drinking tea against a
hyper-real trompe-l’oeil of white lake-
house and pink flamingos. And he has a
novelist’s knack for playing with
time. Just as his last film Enter
the Void saw its hero stuck in
the afterlife watching his own
story replayed, so Mur-
phy too is doomed to
be both here and
there, present
and past, get-
ting ever
darker
until we
is derisive slang), Federico darker, and
that difference, with all its implications,
poundsawayattheheartofthemovie.
“I’m back, you bastards,” announces
Myrtle “Tilly” Dunnage (Kate Winslet)
at the start of The Dressmaker, these
particular bastards the citizens of Aus-
tralian Outback hellhole Dungatar circa
1951, a two-horse town where both
horses have died. But it’s Dungatar to
which she returns, a femme fatale-ish
seamstress in eye-popping couture. Half
the premise — Tilly making over the
town’s dowdy women with her trusty
Singer sewing machine — would be
insufferably twee if it weren’t for the
other half. As a fatherless child, she was
bullied by the whole town and blamed
for the violent death of a schoolmate.
(She too thinks she might be guilty.) And
nowshewantsrevenge.
So pass the first five minutes. Stick
with it and you will encounter the many
rural grotesques, the rival dressmaker,
the local hunk, the box of hash brownies,
the wife-beater’s comeuppance, the
poignant romance, the tragic demise in a
vat of sorghum, the am-dram produc-
tion of The Mikado, and the
unfathomable quantity of lavish
frocks. If all this sounds tonally
deranged,indeeditis,lurching
from low farce to teary
melodrama, then standing
on its head and barking.
I actually think I
enjoyed it, though I
now feel so confused I
mightbewrong.

Slick, stirring — and lacking a personal touch

Impeccable
POP ALBUM timing: Adele
Kevin Winter/Getty
Adele: 25
XL Recordings
aaaee
Ludovic Hunter-Tilney

The progression of Adele’s albums mir-

rors the British television documentary
series Seven Up!, which each seven years
revisits the lives of a group of people
who have been tracked since childhood
in 1964. Adele’s version began with her
debut 19 in 2008, released when she was
a graduate from a London stage school.
Then, three years later, came 21, which
was themed around a break-up. Now it
is time for 25, which follows marriage
and motherhood.
Another set of figures hovers over her
albums. 19 sold 7m copies, a vast
amount for a newcomer. But 21 dwarfed
it. It shifted 30m units, a freakish quan-
tity at a time of record industry crisis.
These two sets of numbers, Adele’s age
and her sales figures, collide on 25. The
expectation surrounding the album is
immense: there are hopes it will single-
handedly reverse a 5 per cent decline in
US album sales so far this year. Like a
James Bond film, it is a moneymaking
franchise, a sure bet in an economically
precarious age. But what room does that
leave 25 to develop musically from 21?
“Everybody tells me it’s about time I
moved on,” she sings on “River Lea”, a
standout track. Produced by Brian
“Danger Mouse” Burton, it takes one of
soul music’s most abiding images, the
river, and turns it into a stirring number
about being unable to escape history.
“Send My Love (To Your New Lover)”
also finds Adele nimbly traversing the
distance between past and present,
chanting over a lilting, singsong beat
about letting go of “ghosts”.
But 25 could do with more exorcism.
Despite its diaristic title and Adele hav-
ing co-written all its songs, 25 lacks a
personal touch. “I did pretty much write
an album about being a mum, but that’s
pretty boring for everyone who isn’t a
mum [so] I scrapped that,” the singer
has said. The one song about parent-
hood, “Sweetest Devotion”, is couched
in boilerplate gospel-pop that could
equally apply to romantic love. The
desire to capture the widest possible
constituency trumps all.
The singing goes some way to com-
pensating for the generic sentiments.
Even when belting out “Hello”, Adele
doesn’t overdo the theatrics. Her timing
is impeccable, as with the way she punc-
tuates the word “breathe” in “Remedy”
with a sighing breath. The result is a
slickly assembled commercial pop
product sung by a technically excep-
tional vocalist. Perhaps it is greedy to
want more. But if 25 is to be judged by
more than its sales figures, we should
want more.

DANCE
Twyla Tharp 50th anniversary
Lincoln Center, New York
aaeee
Apollinaire Scherr
The civilian slouch, the shuffling feet,
the spunkiness: where would contem-
porary dance be without veteran chore-
ographer Twyla Tharp? Where Wayne
McGregor, joining squiggly spine to wide
open ballet hips, or Hofesh Shechter,
with his fumbling masses? But Tharp
alone sets her seeming casualness in
structures as ornate as a fugue.
So there is cause for celebrating the
74-year-old’s 50 years of dance-making.
You will not find it, however, in the all-
new show (presented in New York by
the Joyce Theater) that concludes its
17-city American tour this week.
The second of the programme’s
40-minute pieces is harmless enough,
perhaps because it signals its cartoonish-
ness at the title, “Yowzie”. A homage to
showbusiness’s lowly origins in vaude-
ville and slapstick, the piece bumbles
along to vintage jazz. But the supposed
serious dance, Preludes and Fugues — in
the mountains of recent press, Tharp has
characterised it as possessing “the aus-
terity of innocence” — is like a comedian
whoonlyinterruptshisonslaughtofstale
jokeswhenhewantstohearyoulaugh.
Tharp concludes nearly every prelude
and fugue she has selected from Bach’s
Cartoonish: Twyla Tharp’s ‘Yowzie’
“Well-Tempered Clavier” with a punch-
line you didn’t see coming: a goofy lift, a
shuffle or shrug. You end up waiting in
dread for it. She makes the rookie’s mis-
take of crowding intimate moments,
interrupting a slow unfolding, distract-
ing us by whatever means necessary
fromthepurityandscaleofBach’smusic.
The compulsion for shtick proves par-
ticularly awful in her brief allusions to
illustrious predecessors — Paul Taylor
especially, since he has approached
Bach with openheartedness. Finally,
Tharp reduces her 13 gorgeous dancers
to types. Only long-time trouper John
Selya, whose low centre of gravity
matches his captivating directness
toward the steps and his companions,
manages to elude classification.
There are glimpses of what might
have been. For example, to the first prel-
ude Selya and NYCB soloist Savannah
Lowery danced hand-in-hand, first
waltzing, then Charlestoning, then she
arching back as he whirled her around
and up and down. One thing rolled into
the next in signature Tharp fashion. I
could have watched that pair all night.
To November 22, joyce.org
12 ★ FINANCIAL TIMES Friday 20 November 2015

Odd one out

Tech IPOs in 2014 raised nearly as much as the 2000 peak, even though there
were far fewer offerings. Recent IPOs have been priced towards the lower end of
the suggested range. Square sold shares at $2 below its indicated price range

Global technology initial public offerings Selected tech IPOs

Twitter: @FTLex Email: lex@ft.com
Funds raised in IPO ($bn) Number of IPOs IPO price IPO price range Current share price**
60 800 IPO date Company $10 $15 $20 $25 $30
Royal Mail: and a regulatory review next year may Italian banks:
turn out to be less onerous than Nov 2015 Square
lepidopteral leanings expected. Even so, a transformed Royal 600
productivity gap
Mail is unlikely to be a butterfly. A Nov 2015 Match Group
Some companies talk about moth — functional and largely 40 Italian banking can be contradictory. In
restructuring or reorganising. The nocturnal — might be a better analogy. Oct 2015 Pure Storage his latest restructuring, UniCredit boss
UK’s Royal Mail talks about 400 Federico Ghizzoni aims to shrink the
“transformation”. The word implies a Jun 2015 Fitbit country’s second-biggest lender by
process of complete reinvention, at the Lonmin: market value — by cutting 12,000 jobs
end of which a beautiful corporate 20 Apr 2015 Etsy and selling assets. Meanwhile Italy’s
creature will emerge, butterfly-like, stay of execution 200 popolari banks are abuzz with merger
from the husk of state ownership. Jan 2015 Box talk as these smaller banks shake off
The reality is rather more prosaic. Ouch. And ouch. Investors in Lonmin their mutual pasts and try to bulk up.
Transformation, Royal Mail-style, is a need a thick skin and a very, very Jun 2014 GoPro Big or small, the banks have the same
long, expensive slog. The UK delivery long-term horizon. They have just 0 0 aim: to cut costs, capture more revenue
group, now wholly privatised after the approved the South African platinum 1995 98 2000 02 04 06 08 10 12 15* and use profits to build capital.
government sold its remaining shares miner’s third rights issue in six years, That is just what regulators want too.
FT graphic Sources: Dealogic, FT research * Year to date ** As of 4.30pm GMT
last month, will rack up at least £180m this one at a 94 per cent discount to the Trouble is, it will lumber investors with
in transformation costs this year. Much share price. The cash call will raise feeble returns as long as interest rates
of that will be incurred in a round of $470m and will open the door to a It is all over. Tech bubble 2.0 has busy at Twitter. It has cool-looking private valuations. Institutional stay low. Italian bank returns on equity
voluntary redundancies (3,000 out of a $370m debt refinancing. Without it, burst. Square priced its initial public hardware and software. And it has all investors say they would rather wait are already pathetic; most, bar Intesa
total workforce of 148,000 left in the Lonmin would have run out of cash. offering below the range, at only $9 the financial features of a “unicorn” to see how a stock performs than Sanpaolo’s, are below 6 per cent and all
first half). Operating costs in the core Yesterday’s supportive vote from compared with a proposed $11-$13. (the name given to hyped private start- take a hefty allocation upfront. That but Intesa trade at a discount to net
business will fall by at least 1 per cent long-suffering shareholders will keep it Not even Goldman Sachs could sell ups), with a private valuation of $6bn was evident in the Square IPO. But tangible book value as a result. Some
this year — news cheered with a 5 per going for a couple more years. this thing. Call in the removal trucks. and a public one of $3.2bn at pricing. Match, the online dating company, banks are counting on fee income,
cent pop in the share price. Lonmin’s bind is obvious from the San Francisco is done. But despite appearances, Square is a which also priced on Wednesday, did increasingly from asset management,
On top of that comes another £440m issue’s extreme discount — and from Yes, Square popped to $13 in lossmaking financial services company, so in its indicated range. Pure to offset low interest income. Lower
of investment in automation and IT the company’s willingness to pay early trading. But that is still down with an unsexy niche in the payments Storage, the flash memory company, bad loan charges will help. But cost
that will support services such as same- almost 10 per cent of the proceeds in from its last private fundraising at infrastructure. It does other stuff too — last month priced above its last cuts are the main way to lift returns.
day delivery and a better system to fees to advisers and financiers. The $15.46 and considerably lower than it has a food delivery app, for example private round, in the middle of its Again, early mover Intesa has shown
allow people to return unwanted miner should refresh its board: a the guarantee of $18.56 that late — but 94 per cent of revenues comes indicated range, and has since traded the way. Its cost-to-income ratio of
products to e-retailers. All this carries couple of members predate the last investors extracted. They were from Square’s role as a “merchant higher. 46 per cent at end-September was one
execution risk; just ask UK Mail, a ($817m) cash call; one was there even compensated with a lot of extra aggregator”. It collates the transactions Uber, Dropbox, Snapchat and the of the lowest of Europe’s big banks. But
competitor that on Wednesday blamed before the previous one. Lonmin has at shares in the IPO. of 2m sellers and stands between them other richly priced private tech its ROE is still only 6 per cent. That is
the botched commissioning of a new least wielded its axe more decisively A faint glimmer of hope: perhaps and the card networks. It is not so companies must hope that Square partly the result of its capital strength.
parcels hub for a profit warning. elsewhere. It has cut its workforce and Square is not a tech company at all. It much disintermediating and disrupting was perceived differently because it Its Basel III common equity tier one
Assume that Royal Mail manages curbed capital outlay by closing certainly quacks like a duck. It has as adding another layer. is not offering the same prospects for ratio of 13.4 per cent — to UniCredit’s
such challenges better, as it has done so high-cost shafts or putting them on Jack Dorsey as founder and chief Tech IPOs this year have been innovation-led growth. Then the 10.5 — is high by European standards.
far. Its prize is a leading position in a care and maintenance. executive — at least, when he is not mediocre and there is scepticism about party can continue. The regulator still takes all.
market so brutally competitive that it But its newfound wiggle room will be The problem for Italian banks, with
borders on the irrational. Royal Mail’s short lived. On top of risks beyond its their high branch and staff numbers, is
growth engine is parcels, yet in the first control — such as South Africa’s lousy productivity. Staff at Intesa
half revenues there inched up just 1 per uncertain power supply and pricing, demand. If this rights issue does not do refining hit earnings, as did partial converters they need cost five times contributed more than €29,800 each to
cent, less than the 4 per cent gain in changeable mining regulation, poor the trick, Lonmin will become a white exposure both to oil and to Chinese the petrol equivalent. Should car nine-month earnings — more than
volumes. Even before “transformation productivity and unpredictable labour elephant. industrial spirits — China has no buyers reject diesel en masse, Johnson double the output of their UniCredit
costs” the company’s first-half relations — Lonmin will slide back into immediate need for more Matthey would be badly exposed. But counterparts and four times that of
operating margins were static. Things its familiar pattern of debt in no time. petrochemical plants. On the plus side, there are rosier possibilities, according staff at Banca Popolare dell’Emilia
are unlikely to get better any time Net debt at end-October was $284m, Johnson Matthey: the company yesterday announced a to analysts at Liberum. A planned shift Romagna. One way to boost output
soon; Amazon’s decision to launch its leaving $85m in net cash from the larger than expected special dividend, of testing from the laboratory to the might be consolidation: combining UBI
own UK delivery network is expected rights issue plus the refinanced bank catalysing growth and better control over its working road is a de facto tightening of Banca and Banca Popolare di Milano,
to limit volume growth for other facilities. Assume the platinum price capital. The reward was a 9 per cent standards. So is the next phase of say, could save about 30 per cent of the
delivery companies to a measly 1-2 per stays put, earnings stay flat and the Diesel engines emit poison: everyone bump in the shares, which now trade at European regulation, which requires latter’s cost base, notes Berenberg.
cent a year, and there is already spare miner sticks to planned capital now knows this, thanks in part to 15 times earnings. cleaner emissions from petrol too. Such deal speculation has already
capacity. Some players in the market spending of $430m in the next three industrial-level mendacity about what This is still down a quarter since Together these boost demand for the been priced into many banks’ share
will withdraw or fail, especially once years. Add all that together, and it Volkswagen cars spew out. Bad for June, and cheap on a historic basis. company’s pricier kit. prices. That is a pity, since it also
they are forced to raise wages (to the could be back into debt in a year. anyone supplying parts for such Here they will remain without more As converters become costlier, means that improvements in returns
so-called living wage). Lonmin claims it will break even at the engines. But what if those parts are the solid growth prospects. For those, buyers might shift to hybrid or electric have in effect been rewarded before
Royal Mail will not be one of them; it cash flow level by the end of next year ones that strip poison from the fumes? Johnson Matthey must look towards its cars. Johnson Matthey has a battery they have been achieved.
is big, its finances are in decent shape, (after capex). That is a question for anyone emissions control division, responsible materials business, an admission of the
it has the advantages of incumbency, Yet it is hard to avoid the impression pondering Johnson Matthey, leading for two-thirds of sales and half of need to spread its automobile bets. It is
brand recognition and access to the that, for all the conservatism of its manufacturer of catalytic converters. profits. Here, the VW scandal adds to currently just 5 per cent of sales. For Lex on the web
For notes on today’s breaking
Post Office’s high-street network. It is plan, survival still hinges on rivals Its outlook has been smoggy. An exit an already complex story. Because now, to become more of a growth story stories go to www.ft.com/lex
sitting on some valuable real estate, cutting production and a pick-up in from profitable but non-core gold- diesel engines are so dirty, the Johnson Matthey still needs diesel.

Today’s temperatures

41 1020 Abu Dhabi Sun 30 Malta Fair 20

1010 3 Amsterdam Shower 10 Manila Sun 33
Ankara Sun 14 Miami Thunder 28
2 990 Athens Sun 21 Milan Cloudy 13
LOW 1
L 5 Bahrain Fair 26 Montreal Sun 8
1000
Barcelona Sun 21 Moscow Rain 5
Beijing Cloudy 4 Mumbai Sun 34
O Belfast Sleet 6 Munich Shower 14
6 Belgrade Sun 18 Naples Cloudy 19
9 8 Berlin Shower 10 New York Sun 14
1 10 Brussels Rain 10 Nice Sun 20
10 Budapest Cloudy 13 Nicosia Sun 23
1020 8 15 Cairo Sun 24 Oslo Fair 2
Cardiff Fair 10 Paris Shower 14
14 Chicago Fair 7 Prague Rain 8
16 Cologne Rain 9 Reykjavik Snow 0
17
Copenhagen Shower 7 Riga Drizzle 7
3 Delhi Sun 27 Rio Thunder 36
14 Dubai Sun 30 Rome Cloudy 19
30
Dublin Hail 6 San Francisco Sun 18
1030 Edinburgh Sleet 6 Singapore Thunder 30
9 20 9 I H Frankfurt Rain 11 Stockholm Fair 1
22 Geneva Shower 17 Strasbourg Shower 14
23
Hamburg Shower 9 Sydney Sun 42
1020
Helsinki Sleet 3 Tokyo Drizzle 16
23
Hong Kong Shower 28 Toronto Fair 7
Istanbul Sun 18 Vancouver Fair 7
5 HIGH
Lisbon Fair 19 Vienna Shower 12
Wind speeds in PH 23
London Fair 10 Warsaw Shower 9
Forecasts by Los Angeles Sun 25 Washington Sun 14
Wind speed Luxembourg Rain 10 Zagreb Fair 17
in KPH Madrid Sun 20 Zurich Shower 16

CROSSWORD ACROSS
1 Fully 26 see cheap computer’s
4 One who gets up from chair is
erotic (5)
No. 15,093 Set by WANDERER content that anyone can read? (8) 6, 17 Pretends not to be interested in
        5 Culmination of a bit of play obscure dramas? (5,4,2,3)
including own goal (6) 7 Cor anglais’s third piece broadcast
 10 Stone age tools working the soil (7) (3)
11 Asses working a long time need 8 Guarantee no right to come next
 
odd bits of rest (7) (5)
12, 13 Area once under the British 9 Being governed by one’s own in-
flag, taken by France in her broken law (4,4)
   English, say (5,4,5) 14 Early article by magazine editor?
15 Scot elected as PM, once (5) (5,2,4)
16 Relative has hard time getting drug 16 Racing car taking 7 26, say, and
  
after a month – admitted by 7 26? Queen around Silverstone (8)
(8) 17 See 6
 19 Sporting footwear with diamonds 18 Either half of two-thirds of nearly
takes off (3,5) inactive substance (5,3)
  21 Little fish for Jack, the picky eater
20 Russian composer loses address
for US male sculptor (5) (5)
21, 23 Be a guarantor in respect of 22 See 3
    Wrong Trousers Day? FT? Not at 24 Religious leader raging briefly
first (5,6,3) about bishop (5)
25 Make good theatre at city church 26 Number one vegetable, we hear (3)
  
(7)
27 German repeatedly into living as
mendicant (7) Solution 15,092
28 Develop the ability to chew 14,
  ) 2 5 7 + ( & + 2 3 5 ( 6 7
thanks initially to 18 (6) 9 $ 6 $ , $ $
29 Sluggish as shopper that’s no & (

















JOTTER PAD





CROSSWORD
No. 14,845 Set by NEO

























ACROSS
1 Important Viking one among best
friends (5,4)
6 Socialite with appeal makes left-
side entry (5)
9 Brazilian city as far as we’re
concerned ungovernable (7)
10 Obscure English knight against
European rebuffed (7)
11 Poor nation’s little island in hot
current (5)
12 Caught flamboyant cardinal in
Seventh Heaven? (5,4)
14 Notice flock encircles houses (3)
15 Alarmist financier reversed into
second vehicle bearing right (11)
17 German poet’s the writer
embracing pub vocalist (11)
19 Moggy fur with hole concealed? (3
20 Earl, King and Queen on
Hampshire river’s banks (9)
22 Ambassador in temple finds grain
(5)
24 Ardent Green must change leader
(7)
26 As one’s despicably mean, small
tips for servants materialise (2,5)
27 Sauce unfortunately knocked over
contains sulphur (5)
28 Related martial artist stops at
Bedouin residence (9)
Solution to Saturday’s prize pu
Solution to yesterday’s prize pu
Winners’ names will be printed

1 7 & 2 9 ( 5 * , 5 / 6
jogger? (8) 5 ( $ ( $ 1 7
6 7 , 5 8 3 $ 5 7 , 6 7 , &
JOTTER PAD DOWN
2
6 3
$ 6
2 5 $ ' , &
( 7 5
2 0 ( 1
1 First showing by PM before start ( ( 5 * 5
: $ 1 ' ( 1 2 5 0 , 7 <
of election (8) & + 6 : / :
2 Lamb taco is served with cold dish + $ 7 ( 0 $ , / * 8 7 7 ( 5
of veal and ham (11) ' $ 7 2 2 + (
7 ( 1 ' ( 5 ) 2 2 7 < ( 7 ,
3, 22 To go viral badly, there’s chance 0 ( $ 6 + 0 (
hot date’s gone wrong (5,4,5) : ( ( ' 3 , ( ' $ 7 ( 5 5 (
Friday 20 November 2015 ★ 13

CNOOC Mitsui IBM IHG Xetra Dax Gold Euro/dollar Brent oil
Insight The renminbi and Chemicals
the IMF currency basket 2.46% 1.39% 1.16% 1.5% 1.1% $10 0.7% 0.1%
JENNIFER HUGHES, PAGE 22
HK$8.33 Y496 $137.4 2,502p 11,085 $1,081 $1.0732 $44.12

Pfizer gears up Bright spark ThyssenKrupp bolsters dividend

amid robust rise in profits and positive cash flow
Short
View
for battle in James
Mackintosh

Washington As the Federal Reserve at long last appears ready to

remove the zero interest rate honeypot, bears are growling
that the US is moving into the final phase of its credit cycle.

over Allergan If they are right, investors should be paying attention.

There are five reasons to worry. First, corporate profits
have turned down, and analysts have been cutting their
forecasts of future profits. The fall so far has been only
small, but it stands in stark contrast to the double-digit
rises that Wall Street usually hopes for.
Fears deal would deprive US of billions Second, sales are not helping. US companies have seen
revenue go nowhere amid the slow growth of the past few
in tax, hit jobs and erode science base years. Data on manufacturing and trade collected by the
Census Bureau show sales in those areas have been falling
at a speed only seen since 1992 during recessions.
FT REPORTERS ing and marketing drugs, leaving drug Third, credit markets are growing twitchy. The spread
discovery to nimble biotech companies. over government bonds demanded by junk bond investors
Pfizer is gearing up for battle in Wash- His words have stoked fears for their has risen sharply, hurt in particular by unwanted oil debt.
ington over concerns that a potential jobs among some Pfizer scientists. The price of “leveraged loans” to private equity has fallen
$150bn deal to buy Dublin-based Aller- With the groups engaged in friendly too; this week, the banks backing Carlyle’s purchase of
gan would deprive the US Treasury of talks, analysts and investors have data storage company Veritas shelved a $5.5bn offering of
billions of tax dollars, put thousands of warned that the main risk to a combina- loans and junk after finding too little demand.
jobs at risk and erode the country’s tion of Pfizer and Allergan is a political Fourth, America’s corporates (excluding the financial
science base. push designed to frustrate the deal. sector) have been exploiting cheap finance to a degree not
The Obama administration is prepar- The administration’s tax measures seen since the heyday of the last credit bubble in 2007. Bor-
ing this week to unveil measures to are expected to focus on diluting the rowing to buy back shares or engage in megamergers is
deter US companies from using take- benefits that inverted companies gain back to pre-crisis levels, pushing up leverage — net debt
overs to relocate their domicile to low- from making loans among subsidiaries. compared to equity — back to where it stood in 2008.
tax jurisdictions, as Pfizer nears a deal The Treasury made it harder last year Finally, default rates are picking up, with a tenth of US
with Allergan to do just that. Though for inverters to access offshore earnings, energy junk bond issues defaulting in the past year (see
talks are continuing, the US group is which scuppered AbbVie’s planned chart). True, junk defaults hit very low levels of just 1.4 per
preparing to offer more than $380 a £32bn takeover of UK-listed Shire. cent last year, the lowest since 2007. But Standard & Poor’s
share, people close to the situation said. The US Treasury could also put pres- predicts that they will reach 3.3 per cent by next autumn,
A deal, structured as a tax inversion, sure on Pfizer through its status as a gov- the highest since the recovery began.
would see Pfizer move its tax base to ernment contractor, according to Citi Against this, bulls can point out that the Fed remains
Europe, allowing the company to escape analyst Andrew Baum. dovish even as it prepares to raise rates. When the Fed
US tax bills on more than $128bn of Stephen Myrow, a former Treasury tightened in the mid-1980s and 1990s, junk bond defaults
profits earned overseas. Pfizer paid an official now at Beacon Policy Advisors, rose, but wider markets quickly recovered.
effective tax rate of roughly 26 per cent pointed to a letter sent this week by Jack In 2004, higher rates coincided with both a bull market
last year compared with Allergan’s rate Lew, US Treasury secretary, to lawmak- and lower defaults. Mostly, bulls hope that higher rates will
of less than 5 per cent. ers saying the administration could not come in response to a stronger economy, so companies can
If successful, a tie-up between Pfizer stop inversions without congressional grow out of their debt. Fingers crossed.
and Allergan would be the biggest deal action. “If you read between the lines,
in the healthcare sector and the largest this shows they’re starting to lay out the Ina Fassbender/Reuters
US junk
tax inversion, paving the way for more reasons for why they weren’t able to Default rate
US companies to explore such deals. stop [Pfizer-Allergan] and place the JAMES SHOTTER — FRANKFURT The group also posted a posi- turn round the group in the Barclays High Yield %
MICHAEL POOLER — LONDON
Pfizer has assembled a team of advis- blame elsewhere,” he said. tive free cash flow before wake of failed multibillion- Index spread 20
ers with political connections including Others questioned the merits of tak- ThyssenKrupp has raised its divestments of €65m, a big euro steel plant investments in
Eric Cantor, the Republican former ing over Allergan. “This looks like a bad dividend by more than a third improvement from a drain of the Americas, said the payout 15
House majority leader who is working at deal for the wrong company, at the after the German steel and €357m last year, and the first increase was a “step in the right
boutique advisory firm Moelis. He is wrong time and the wrong price,” said technology group posted a time the group has recorded a direction” but “cannot be a sat- 10
advising Pfizer on how to overcome Aswath Damodaran, a finance professor sharp rise in annual profits. positive cash flow since 2006. isfactory dividend over the Default rates are
fears that the deal would lead to lay-offs at New York University’s Stern School. In light of the improved medium term”. 5 picking up, with a
and cuts in research and development, Pfizer shares closed 2.8 per cent lower In the year to the end of Sep- results, ThyssenKrupp said it Since taking the helm in tenth of US energy
0
two of the people said, though he will while Allergan dropped 2 per cent. tember, ThyssenKrupp said net planned to pay shareholders 15 2011, he has embarked on a junk bond issues
not lobby politicians directly. Reporting by James Fontanella-Khan, profit came in at €268m, up cents per share, up from 11 restructuring drive. 2000 05 10 15 defaulting in the
Brent Saunders, Allergan chief execu- David Crow, Barney Jopson and Arash from €195m a year earlier. cents per share last year. Shares in ThyssenKrupp Sources: Bloomberg; S&P past year
tive, has said large pharma companies Massoudi Revenues rose 4 per cent to Heinrich Hiesinger, who was closed 2.6 per cent higher at
should focus their resources on develop- Cancer drug rights page 14 €42.8bn. brought in as chief executive to €19.65, a three-month high. james.mackintosh@ft.com

Rolls-Royce under pressure to hand

board seat to US activist ValueAct
FT REPORTERS but no decision had been taken. “We are yet come to a view on whether Rolls-
leaving the option open,” it said. Royce should focus solely on its core
Top shareholders are calling on Rolls-
Several top-20 shareholders said they aerospace engine business.
Royce to bring US activist investor
wanted more urgency at board level. “I would say ValueAct is aligned with
ValueAct on to the board to help efforts
“We support ValueAct,” said one. us in their investment approach,”
to revive the UK engineering group.
“They have similar values to ourselves. another investor said. “I would be
The San Francisco-based hedge fund They are medium- to long-term inves- happy to see them on the board.”
Air Liquide takes the top revealed yesterday that it had doubled tors that want to create more value at These views were echoed by several
spot in industrial gases its stake in Rolls-Royce to 10 per cent, a Rolls . . . It is time to think seriously big shareholders who expressed frustra-
move that is expected to heighten about how the company can be turned tion with a board that has lacked indus-
Air Liquide’s takeover of Airgas, for pressure on Warren East, chief execu- round.” trial expertise and failed to engage
$13.4bn including debt, is one of the tive, for a change of strategy. The US fund, which is pushing for a successfully with investors.
biggest acquisitions of a US materials The group has gone from profit warn- divestment of the group’s businesses But many said there was no immedi-
company by a European group. It will ing to profit warning over the past two outside aerospace, has been contacting ate pressure for a change of chairman or
make Air Liquide, headed by Benoît years, with the fifth last week. The stock Rolls-Royce’s top shareholders to chief executive. “This is a relatively new
Potier, above, the largest supplier of has fallen almost 50 per cent since the explain its strategy. management team,” one investor said.
industrial gases. first warning in February last year. “We thought the things they were say- Reporting by Peggy Hollinger, David
US targeted iPAGE 17 Rolls-Royce said it had received a ing were sensible,” a top-10 shareholder Oakley and Mark Odell in London, and
request from ValueAct for a board seat said, though he stressed that he had not Stephen Foley in New York

Companies / Sectors / People

Companies
AB InBev......................................................22
ABN Amro...................................................16
AOL..................................................................15
Air Liquide...................................................17
Air Products................................................17
Airbus.............................................................17
Airgas..............................................................17
Aldermore....................................................21
Alibaba...........................................................17
Allergan...................................................13,14
Alrosa.............................................................14
Amazon..........................................................12
Ant Financial..............................................14
Anthem....................................................14,21
AstraZeneca...............................................14
BHP Billiton...............................................20
BMW................................................................15
Baidu...............................................................14
Banca Popolare dell’Emilia
Romagna.......................................................12
Banca Popolare di Milano..................12
Berkeley.........................................................21
Best Buy ......................................................21
Boeing............................................................17
Bombardier..................................................17
Bovis Homes..............................................21
Bristol-Myers Squibb............................14
Cellectis.........................................................14
Citic Bank.....................................................14
Commerzbank...........................................16
Credit Suisse..............................................16
DZ Bank........................................................16
Deutsche Bank..........................................16
Dropbox........................................................12
Embraer.........................................................17
Facebook......................................................14
Fiat Chrysler...............................................15
Freeport Indonesia.................................17
Freeport-McMoRan................................17
G4S...................................................................21
Gala-Coral....................................................16
General Motors.........................................15
Glencore.......................................................20
Goldman Sachs........................................20
Google............................................................14
HBOS..........................................................8,16
HCA Holdings............................................21
Home Depot...............................................21
Idemitsu Kosan.........................................14
Intesa Sanpaolo........................................12
JPMorgan Chase.....................................20
JX Holdings................................................14
Johnson Matthey...............................12,21
Juno Therapeutics..................................14
Keurig Green Mountain .....................21
Kite Pharma................................................14
Levi Strauss................................................10
Lloyds Banking Group...................16,16
Lonmin...........................................................12
Lucara Diamond......................................14
Lyft.....................................................................1
Macy’s.............................................................21
Match.........................................................12,21
Merck..............................................................14
Millennial Media.......................................15
Morgan Stanley.......................................20
Nordstrom....................................................21
Novartis.........................................................14
Ophir Energy..............................................21
Paragon.........................................................21
Persimmon...................................................21
Pfizer.........................................................13,14
Poundland....................................................21
Pure Storage..............................................12
Rentrak..........................................................15
Rio Tinto......................................................20
Roche..............................................................14
Rolls-Royce..................................................13
Royal Bank of Scotland.......................16
Royal Mail....................................................12
SABMiller.....................................................22
Servier............................................................14
Showa Shell................................................14
Smiths Group.............................................13
Snapchat....................................................1,12
Square.............................................1,12,14,20
Standard Chartered...............................16
Starboard Value.......................................17
Starbucks.....................................................10
Tencent.........................................................14
ThyssenKrupp...........................................13
TonenGeneral............................................14
Twitter...............................................12,14,20
UBI Banca.....................................................12
UK Mail..........................................................12
Uber........................................................1,12,14
UniCredit.......................................................12
UnitedHealth........................................14,21
Valeant...........................................................21
ValueAct........................................................13
Verizon...........................................................17
Virgin Money.............................................21
Vodafone.....................................................20
Volkswagen.................................................15
Volkswagen ...............................................12
WGZ Bank....................................................16
WeBank.........................................................14
Yahoo..............................................................17
Sectors
Aerospace & Defence...........................13
Banks........................................8,12,14,16,20
Chemicals.....................................................17
Food & Beverage....................................22
Industrial Goods.......................................13
Industrials..............................................13,22
Mining.......................................................12,14
Oil & Gas......................................................14
Pharmaceuticals.......................................13
Property..........................................................3
Support Services......................................12
Technology...............................................1,12
Telecoms................................................15,20
People
Armstrong, Tim........................................15
Böhnke, Werner........................................16
Crosby, James...........................................16
Diess, Herbert............................................15
Dorsey, Jack..............................................20
Dorsey , Jack..............................................12
East, Warren...............................................13
Ghizzoni, Federico...................................12
Hiesinger, Heinrich.................................13
Hornby, Andy............................................16
Kirsch, Wolfgang......................................16
Lamb, William............................................14
McCausland, Peter..................................17
Mercedes Corrales, Maria..................10
Potier, Benoît.............................................17
Stevenson, Lord.......................................16
Thiam, Tidjane..........................................16
Wol, Hans-Bernd......................................16

© The Financial Times Limited 2015 Week 47

14 ★ FINANCIAL TIMES Friday 20 November 2015

COMPANIES
INSIDE BUSINESS
Insurance
TECHNOLOGY

UnitedHealth threat to quit Obamacare Richard

Insurer to review whether
to abandon scheme as it
struggles to make a profit
DAVID CROW AND ADAM SAMSON
NEW YORK
BARNEY JOPSON — WASHINGTON
UnitedHealth, the largest US health
insurer, dealt a significant blow yester-
day to President Barack Obama’s signa-
ture policy by threatening to withdraw
people without cover has fallen to a
record low of 9 per cent, compared with
16 per cent five years ago, according to
the Centers for Disease Control and Pre-
vention.
However, UnitedHealth said it was
struggling to make a profit on the plans
it offered through the exchanges,
prompting it to scale back marketing of
the products and to start a review of
whether it should abandon the scheme
altogether. It said it would make a final
Waters
of whom have been without cover for That, in turn, could stop people from
years — are visiting the doctor and using signing up.
medical services more than previously
expected, analysts said.
Many of UnitedHealth’s rivals have
Mr Obama has hailed the Affordable
Care Act as a success and this month
announced that 17.6m Americans have
Square’s rough ride to
embarked on a round of big-ticket deal-
making to better prepare for a future
been covered with health insurance
since the law took effect, although it has
market is a lesson to
under the Affordable Healthcare Act,
although the company has been left on
the sidelines of industry consolidation.
been politically divisive.
In the summer, the US Supreme Court
handed Mr Obama a victory, upholding
rival tech start-ups
Although UnitedHealth is the largest a core component of his still-controver-
health insurer, it offers fewer plans sial overhaul of the nation’s healthcare

from insurance exchanges that have
helped to sharply reduce the number of
Americans without healthcare cover.
The introduction in 2010 of the
Affordable Care Act, dubbed
Obamacare, helped establish a network
of online exchanges that allowed unin-
sured Americans to purchase individual
healthcare plans.
As a consequence, the percentage of
Pharmaceuticals
decision on whether to withdraw in the
first half of next year.
Shares in UnitedHealth fell 5.7 per
cent in afternoon trade in New York.
Stephen Hemsley, UnitedHealth chief
executive, suggested the entire health
insurance industry was struggling to
make money from plans sold through
the exchanges.
Customers who buy the plans — many
Oil & gas
through the insurance exchange than
rivals such at Anthem, with about
550,000 people enrolled.
Analysts said UnitedHealth’s with-
drawal from the system could have a
knock-on effect because the exchanges
rely on a critical mass of insurers: if one
insurer walks away, it pushes up the
risks for other companies, who could
react by raising prices for consumers.
S
system and safeguarding insurance cov-
erage for more than 6m Americans.
If one insurer However, several cases related to the
law are still working their way through
walks away, the US legal system, including one
it pushes up regarding mandatory contraceptive
the risks coverage. The exchanges, many of
which are run by states, also got off to a
for other rocky start, with technical glitches caus-
companies ing some consumer headaches.
tock market investors have been getting whip-
lash this week trying to follow the twists and
turns in the technology industry’s most note-
worthy initial public offering of the year. With
most of the tech “unicorns” — private compa-
nies claiming valuations of at least $1bn — choosing to stay
private, they are not getting the pick of the herd. Even with
that caveat, the tortuous path that has brought payments
company Square to Wall Street takes some explaining.
In today’s inverted tech financing environment, public
and private markets are switching roles. It turns out that
they are not always suited to their new jobs. And in this
Alice-Through-the-Looking-Glass world, the lower an IPO
price, the more its early investors may be cheering.
Square has become the unfortunate test case for this

Pfizer secures somewhat weird time in the tech financing markets. The
first of the high-profile unicorns to go public, its IPO has
oscillated violently between success and failure in recent
US rights for days — capped by the sort of massive first-day bounce that
only Wall Street’s god of irony could have scripted.

cancer drug One indisputable fact: few people will emerge smelling
of roses from this mess, not least the underwriters who
slashed the issue price to $9, or $2 below the bottom of the
range they had said was likely only a week earlier. A
ANDREW WARD bounce of more than 50 per cent when trading opened yes-
PHARMACEUTICALS CORRESPONDENT
terday may prove shortlived, but it suggests that either the
Pfizer has stepped up its investment in underwriters got the psychological game that surrounds
a hotly tipped new cancer drug which any IPO pricing badly wrong, or they set the bar deliber-
recently made headlines for saving a ately low. Either way, Square left many millions of dollars
one-year-old British girl who was dying on the table. First-day spikes like this during the dotcom
from leukaemia. boom sowed considerable discord between Wall Street and
Silicon Valley, where entrepreneurs and start-up investors
Great Ormond Street Hospital in Lon- believed their ventures were being sold on the cheap.
don this month announced the first use One oddity of the Square IPO is that it looks like a com-
in humans of the product, which pany that would have been better suited to stay in the pri-
employs so-called gene editing to re-en- vate markets for longer. Forget, for a minute, the fact that
gineer immune cells to hunt and destroy it has only half a chief executive in Twitter boss Jack Dor-
cancer. Pfizer has secured exclusive sey. The even bigger issue for investors is Square’s unfin-
rights to commercialise the product in ished business model. Having once seen itself as a consum-
the US if it gains regulatory approval, er-facing payments company, it is trying to become a cloud
signalling the group’s desire to become a software and small business lending company. But it is too
force in the burgeoning field of cancer early in this attempted
immunotherapy. “pivot” for stock market
The product, known as UCART19, is investors to give it the bene-
Square looks like
being developed by a French biotech fit of the doubt. it would have
company called Cellectis. It is similar to This is an inversion of the
high-profile therapies from Novartis of normal role of public and
been better
Switzerland and Juno Therapeutics and private markets. Most uni- suited to staying
Kite Pharma of the US, which have corns — even those with
attracted hundreds of millions of dollars more developed business
private for longer
of investment in the past two years. models than Square — are
However, whereas these rival prod- still happy tapping private investors for cash. Ride-hailing
ucts — known as CAR-T therapies — apps Uber and Lyft are out looking for another $1.5bn
require each treatment to be engineered between them. But even here, there may be evidence of
from the patient’s own immune cells, growing investor wariness. A $70bn valuation has been
UCART19 uses donor cells that can be touted for Uber in its latest fundraising round, but there do
used by any patient. Cellectis believes not appear to be bidders at that price. When the darling of

Japanese oil refiners set for defensive mergers

this will make its “off-the-shelf” prod-
uct cheaper and easier to manufacture
and administer — a potentially impor-
tant advantage over the other CAR-T
therapies.
UCART19 is at a much earlier stage of
development than its rivals and clinical
trials will be needed to prove that the
apparently successful treatment of the
British toddler can be replicated safely
in other patients. However, the case has
raised optimism over its prospects.
Cellectis said yesterday that Servier, a
larger, privately held French drug-
maker, had exercised an option it had
previously acquired for global market-
ing rights for UCART19, and that Pfizer
had acquired US rights from Servier.
Under the deal, Servier will pay Cel-
lectis $38.2m upfront with a further
$300m subject to successful progress
through the research and development
process. The terms of Pfizer’s agreement
with Servier were not disclosed.
The Financial Times reported in May
that Pfizer was interested in buying Cel-
lectis but a deal failed to materialise.
The US company owns just under 10 per
cent of the French company after the
pair entered an alliance last year to
develop further cancer treatments.
LEO LEWIS — TOKYO
Ageing demographics, hybrid electric
engines and a dwindling passion for
cars among the under-40s are souring
Japan’s long love affair with petrol and
pushing the oil refining industry into a
pair of defensive mergers.
If completed, the two deals — one
announced and the other confirmed as
under discussion by people close to the
talks — would see about 85 per cent of
Japan’s refining capacity concentrated
in the hands of two companies.
The first sign of consolidation came
last week when Idemitsu Kosan and
Showa Shell, Japan’s second-largest and
fifth-largest refiners by sales,
announced they had reached a provi-
sional agreement to merge. Based on
their sales of last year, the combined
company would generate annual reve-
nue of $65bn.
Analysts at Mizuho Securities said
their initial impression of the deal — the
share-swap ratio for the all-stock
merger has not been finalised — was
that “the scale of the benefits cannot be
perceived as positive”.
Meanwhile, people familiar with the
situation confirmed on Tuesday that JX
Holdings and TonenGeneral, the largest
and third-largest refiners, were in
merger talks. JX said it was conducting
“various studies” in response to the
severe conditions in the industry. Tonen
said it was seeking “various options,
such as a tie-up with another company”.
Petrol prices in Japan are at the lowest
level since 2010 and, with increasing
numbers of young Japanese moving into
the cities and into the embrace of first-
class public transport, gasoline demand
is expected to settle into a protracted
annual decline of at least 1.5 per cent for
the next decade.
A duopoly of refiners, controlling
more than four-fifths of Japan’s petrol
supply, would fulfil a vision being
strongly advocated from behind the
scenes by Japan’s Ministry of Economy,
Trade and Industry. The ministry has
Power play: publicly identified refining overcapacity
a plant in as a blight on the sector.
Last year the ministry used newly-
Ichihara,
attained powers to undertake a survey
eastern Japan,
of the country’s 23 refineries in an effort
owned by
to work out where the biggest potential
Idemitsu Kosan,
for capacity cuts might lie.
which has
Average operating margins among
announced a
merger with Japan’s five largest refiners, say analysts,
Showa Shell have been running at 0.7 per cent of
Getty Images sales for the past few years. The govern-
ment is understood to be working on the
assumption that consolidation could
ultimately bring those margins closer to
2.3 per cent.
Thanh Ha Pham, an analyst at Jeffer-
ies, said the intervention of the Japanese
government was the “biggest factor” in
the appearance of the two possible
merger deals, with the ministry of econ-
omy eager to see the industry improve
its margins. The country’s population
was falling and the automobile market
was more fuel efficient, meaning that
demand decline was “structural and
undeniable”, he added.
the present generation of start-ups cannot hit the increas-
ingly lofty price points that are set for it, it does not bode
well for the others. All of this indicates that investor senti-
ment towards tech start-ups has turned since the stock
market volatility brought on by China’s economic slow-
down this summer. The convoluted financing arrange-
ments that companies such as Square have pursued in the
past add an extra, unpredictable twist. By guaranteeing
returns to late-stage investors, many have sent confusing
signals about their valuations, leaving it to Wall Street to
unscramble the mess.
Investors in Square’s final private fundraising round had
reason to cheer twice over the company’s travails. The offi-
cial IPO price was less half the $18.56 a share they had been
guaranteed from an IPO, forcing Square to hand over a
bundle of new shares to make up the difference. The day-
one bounce has now given them an extra shot in the arm.
The last laugh may well be Square’s. An IPO, after all, is a
necessary rite of passage that may provide few clues about
future business success. Google had to slash the price of the
shares in its IPO after a botched sale, before quickly
rebounding, while Facebook traced an opposite path —
pricing high before its stock price collapsed.
As they enjoy the schadenfreude of watching Square’s
stumble into the public markets, other tech start-ups
should pause and think about their own position. Most will
either fail or be acquired and never make it as far as Wall
Street. If they are really lucky, an IPO like this could hap-
pen to them someday as well.
richard.waters@ft.com

Mining Technology

Biggest diamond find in more than a century
ANDREW ENGLAND — JOHANNESBURG
JAMES WILSON — LONDON
A Canadian miner claims it has
unearthed the biggest diamond to be
found for more than a century, with the
discovery of a 1,111 carat gem-quality
stone in Botswana.
Lucara Diamond has released photo-
graphs of the stone, which was discov-
ered at its Karowe mine. It measures
65mm x 56mm x 40mm and pictures of
the clear-looking gem show it to be the
size of a small orange. Analysts said the
stone was difficult to value but should
be worth tens of millions of dollars.
Des Kilalea, an analyst at RBC Capital
Markets, said the stone would be worth
at least $35m, based on previous sales,
and possibly up to $50m. Another
industry professional estimated its
value at $70m to $80m. Lucara sold a
similar type of stone, weighing 342 car-
ats, for $20.55m in July.
To date, the largest diamond ever dis-
covered is the “Cullinan Diamond”,
which was dug out of a South African
mine in 1905. That 3,106 carat gem was
cut and set in Britain’s crown jewels.
William Lamb, chief executive of
Analysts said the stone should be
worth tens of millions of dollars
Lucara, said the Karowe diamond —
about twice the size of any stone sold
recently — also had “historical signifi-
cance” that could influence the value.
“I have been waking up at 4am every
night this week,” he said yesterday. “It is
an amazing feeling and a great position
to be in . . . this is the first stone of more
than 1,000 carats for 100 years.”
Lucara also announced finds of two
other white diamonds: an 813 carat
stone and a 374 carat stone. It said the
weights remained subject to change as
the stones have not yet been cleaned.
Lucara, one of the companies backed
by Lukas Lundin, a mining and oil
entrepreneur, is one of several mid-tier
miners to have geared their businesses
to finding lucrative large diamonds.
Analysts at Investec said the Lucara
find was “a balance sheet changing
development” for the company.
Tencent looks to raise $1bn for WeBank push
CHARLES CLOVER — BEIJING
Tencent, one of China’s largest internet
companies, is looking to beef up its new
banking affiliate by helping it raise
$1bn in new capital, according to
investors.
The bolstering of WeBank, which is 30
per cent owned by Tencent, is part of a
government-approved push by China’s
biggest internet conglomerates into
finance — an area dominated by state-
owned banks.
Beijing hopes the push will lead to a
rise in lending to small and medium-
sized companies, which have been
ignored by the state banking sector. The
fundraising for WeBank, which plans to
offer a range of financial products, is
expected to value the company at $5bn.
Tencent declined to comment on the
capital raising.
WeBank, launched in January, is one
of a number of similar internet banks
that have recently emerged in China.
Others include MYbank, which was
launched in June by Chinese ecom-
merce group Alibaba’s financial affiliate
Ant Financial, while this week search
engine Baidu announced it would
launch a bank in partnership with Citic
Bank.
Due to stringent regulations on the
internet finance sector, these banks are
still required to partner with a licensed
lender and act as middlemen, limiting
activities such as accepting deposits.
China’s banking regulator granted
bank licences to Tencent and Ant Finan-
cial as part of a pilot programme to pro-
mote private-sector banks. Such gov-
ernment support was highlighted by the
attendance of Li Keqiang, China’s pre-
mier, at WeBank’s launch ceremony.
China’s nine largest banks are all
state-owned and tailor their lending
towards large, state-owned groups.
WeBank’s first year in existence has
not gone smoothly — Cao Tong resigned
as bank president in September, and
Zheng Xinlin, the vice-president who
handled interbank business, also
recently resigned, the bank confirmed
this week.
Tencent and other internet compa-
nies plan to use troves of internet “big
data” to determine the creditworthiness
of customers who might otherwise not
have access to larger banks’ lending due
to lack of collateral.
The planned $1bn fundraising will
help WeBank expand its personal-loan
service called Weilidai — “a little loan”
in English — which allows users to bor-
row up to Rmb200,000 ($31,000) with-
out collateral.
Friday 20 November 2015
Volkswagen choked by cost and complexity
German group to cut expenses to help pay for emissions scandal — but analysts fear this may not go far enough
RICHARD MILNE
A steering wheel may seem like a simple
component for a car. But when you buy
a Volkswagen Golf, you currently have a
choice of 117 different steering wheels.
VW is now planning to cut that
number to 43 as the scandal-ridden Ger-
man carmaker looks at ways of saving
money and boosting profitability. Many
of the variations were just for slightly
different shades of grey or an extra but-
ton or two on the steering wheel, accord-
ing to managers.
The resulting potential for cost-cut-
ting has some analysts arguing that,
despite an emissions scandal that could
cost it tens of billions of euros, VW
shares could be a screaming purchase.
“Most investors think VW is currently
uninvestable,” says Max Warburton,
analyst at Bernstein Research. “But this
is the biggest cost reduction possibility
in the global auto sector. It is the only
company that did not cut costs in
2008-09.”
VW is likely to give a flavour of what it
has planned today when the carmaker’s
executives will discuss future invest-
ments with the supervisory board.
Herbert Diess, plucked from BMW
earlier this year to head the struggling
VW brand, has already said investments
will be cut by €1bn and an efficiency
programme designed to reduce costs by
€5bn a year by 2017 will be accelerated.
“We are turning over every stone in
the company and are examining all
planned investments. What is not abso-
lutely necessary will be cancelled or
postponed,” Mr Diess told the VW in-
house magazine Autogramm this week.
Investors in VW may feel a sense of
déjà vu. In both 1993 and 2005 the Ger-
man carmaker faced scandals and
almost non-existent profit margins due
to overspending in the good times.
Outsiders were hired — José Ignacio
López from General Motors in 1993,
Wolfgang Bernhard from Chrysler in
2005 — and costs were soon slashed,
restoring the VW brand to healthier
margins. The question now is whether
another outsider, Mr Diess, can perform
the trick again and overcome resistance
from VW’s powerful trade union and
works council.
Bernd Osterloh, the head of VW’s
works council, has already sounded a
warning shot, suggesting this month
that unilateral cost-cutting by manage-
ment would endanger “the social peace
and future of our company”.
Analysts think this suggests workers
are grasping that management may try
to use the emissions scandal to intensify
cost-cutting and reform, particularly at
the VW brand, which generates half of
group revenue. “This is a historic chance
for VW,” says Arndt Ellinghorst, analyst
at Evercore ISI. “The rhetoric from the
works council suggests they are really
alarmed that the management might
try to run the business and not [the
works council].”
An obvious focus for many industry
observers is jobs. VW makes roughly the
same number of cars as Toyota but with
almost twice the amount of workers.
Axing jobs is likely to prove tricky due to
the union, even if consultants believe
temporary workers could be at risk.
Still, there is plenty for VW to cut.
VW’s administrative expenses have
almost tripled since 2007 while labour
costs have more than doubled, rising far
faster than sales. The operating profit
margin at the VW brand is expected
next year to be 1.2 per cent, the lowest
since 2009, according to Bernstein.
Referring to the famously intense
boss of Fiat Chrysler, Mr Warburton
says: “If Sergio Marchionne ran
Volkswagen, it could make 15 per cent
margins by next Christmas.”
VW was aware of its cost problem
even before the diesel emissions scandal
Telecoms
TV ads to be ‘retargeted’ on to mobiles
SHANNON BOND — NEW YORK
The ads you see on television may soon
follow you into your smartphone apps.
Millennial Media, the mobile advertis-
ing network recently bought by AOL for
$238m, is partnering with Rentrak, the
video measurement company, to allow
advertisers to “retarget” through their
phones people who have seen a particu-
lar ad on TV.
The partnership comes as AOL, which
was itself acquired by Verizon in a
$4.4bn deal this year, is reorientating its
digital advertising business towards
mobile devices, where consumers are
spending increasing amounts of time.
AOL’s ability to drive more spending
through its advertising technology tools,
particularly video ads on mobile
devices, was a key driver of Verizon’s
interest in the company as the largest
Bumpy road
VW brand operating margin (%)
Ferdinand
Piech
José Ignacio López
1993
VW in financial crisis as
new CEO Ferdinand Piech
recruits José Ignacio López
from GM to slash costs
1990 92 94
Output lags peers
Cars produced per employee, 2014
0 5 10 15
Toyota
Renault
PSA Peugeot
Citroën
Fiat
BMW
Mercedes
VW group
Source: Bernstein
broke in September. Martin Win-
terkorn, its former chief executive,
started an efficiency programme that
current managers say will now be inten-
sified. Much of the work is about reduc-
ing complexity, as with the steering
wheels.
Endless examples abound. At the
moment VW manufactures two differ-
ent types of internal lighting — one for
left-hand drive cars, one for right. In the
future, it will just be one. The front seats
in the Golf will have 259 variations in the
future, instead of 341.
But VW is going further. Managers say
it will examine whether it needs so
many models across brands including
VW, Seat and Skoda, and multiple varia-
tions of each model, such as two or five-
door cars, estates and convertibles.
Mr Ellinghorst says this is VW’s big-
gest short-term opportunity. “They
need to reduce the degree of freedom of
engineers,” he says, pointing to how
endless vehicle variations and new tech-
117 43
Number of That choice will
steering wheels be more than
VW Golf buyers halved under
can choose from cost-cutting plans
US wireless operator searches for new
sources of growth. Tim Armstrong, AOL
chief executive, has said that “this is the
year when TV and web budgets are
going to collide”.
US mobile advertising revenues in the
first half of this year reached $8.2bn,
accounting for 30 per cent of overall dig-
ital ad spending. In 2014, online ad
spend reached $49.5bn, compared with
combined broadcast and cable ad reve-
nues of $65.7bn.
Millennial Media says its new offering
will help accelerate big brands’ spend-
ing in mobile and measure the results of
that investment. “Advertisers want to
integrate all of their spending across
screens,” said Liza Blumenthal, head of
north-east sales for Millennial Media.
The partnership uses Rentrak data
from set-top boxes to track which com-
mercials a viewer sees while watching
★ † FINANCIAL TIMES 15
COMPANIES
At the wheel
Persistent chief faces
tricky turnround test
Herbert Diess is, in the words of
analyst Arndt Ellinghorst,
“unpleasant, but in a good way”.
The former BMW executive was
one of the candidates to head the
6 luxury carmaker but was poached
by Volkswagen last year to run its
main but struggling VW brand.
“He is one of those people who
Wolfgang Bernhard are pretty persistent and don’t take
4 no for an answer. He makes life
uncomfortable for people and he
challenges the status quo, from
Herbert Diess what I know about him from BMW,”
says Mr Ellinghorst.
2011 2 But the scale of the challenge
Alone among big global facing him at VW is altogether
carmakers, VW increases its different. The VW brand made
spending and investments €100bn in sales last year but had
after the financial crisis an operating profit of just €2.5bn.
BMW, by contrast, had €75bn in
2001 2005 2015 0
sales and €7.2bn in operating profit.
Mr Piech tries to Gripped by a new scandal, VW VW poaches Herbert Diess Max Warburton, analyst at
move VW brand hires Wolfgang Bernhard from from BMW to turn round its Bernstein Research, thinks Mr Diess
upmarket, pushing Chrysler to make the VW VW brand after years of will be aware that his two
up costs brand more efficient margin decline and stagnation predecessors as outsiders hired to
-2 cut costs — José Ignacio López in
96 98 2000 02 04 06 08 10 12 14 16 1993 and Wolfgang Bernhard in
Estimate 2005 — both left the carmaker
within two years after opposition
Admin costs have tripled since 2007 Labour expenses continue to rise from the trade union. Like many, he
Admin expense (€bn) As % of sales Labour costs (€bn) As a % of sales thinks Mr Diess may be interested
in succeeding Matthias Müller as
20 25 7 3.4 35 17
VW’s group chief executive.
6 3.2 30 “It looks like he is going to play
5 25 16 this more carefully than López and
3.0 Bernhard. Still he should watch his
4 20 back in two years’ time when he’s
2.8 15
3 15 done good work,” he adds.
2.6
10 Mr Diess made his name at BMW
2 14
by reducing its purchasing costs by
1 2.4 5 €4bn and also helped improve its
0 2.2 0 13 research and development
efficiency — issues VW needs to
2007 10 12 14 2007 10 12 14
address too. Richard Milne
nology have been permitted, often at
great expense in terms of machinery
and components. VW has, for instance,
already said that its top-of-the-range
Phaeton saloon will be delayed and only
come in an electric version.
Mr Diess, renowned for cutting
BMW’s costs in the financial crisis, is
also likely to have a look at the VW
brand’s enormous €86bn purchasing
bill. Mr Warburton says that VW often
over-specifies parts, using higher grade
steel than rivals or more complex and
lightweight parts.
Shwetha Surender, a consultant at
Frost & Sullivan, says VW could cut
€3bn in annual costs from its suppliers.
But she also thinks it could make sav-
ings in research and development,
where it spends more than any com-
pany in the industry. She sees savings of
€2bn-€4bn as possible, instead of the
€1bn the company plans.
For investors, all of this may sound
good, but the uncertainty arising from
the emissions scandal dominates. VW’s
shares have more than halved in the
past six months and the company is still
not sure how big the scandal is, and even
less how much it will cost in lawsuits,
fines and recalls. Mr Warburton says
observers should not fantasise too much
about change at VW given the role of the
union and local politicians.
But he adds: “I can’t lay out what the
costs will be in the next 12 months. My
head says it’s logical to be a bit careful
here, but my heart says this is a bit of an
opportunity. I think we’ll probably look
back at late 2015 retrospectively and
think it was a great buying opportunity.”
TV. Those viewers are then anony-
mously matched in Millennial’s data-
base of smartphone and tablet users, so
that personalised video ads can be
placed in mobile apps, targeting viewers
who have already seen a brand’s TV ad.
For example, a retailer could follow
up a TV spot with a mobile video ad
encouraging a consumer to find the
nearest store, add a sale to their smart-
phone’s calendar, or sign up to receive
more information. Advertisers can also
target mobile advertisements to people
who have seen their competitors’ ads.
While other ad tech companies offer
some ability to retarget TV viewers on
the internet, Millennial says the scale
that it and Rentrak bring sets its offering
apart. Rentrak has data on 25m house-
holds, while Millennial’s ad network
extends across 65,000 apps, reaching
more than 190m unique users monthly.
16 ★ FINANCIAL TIMES Friday 20 November 2015

COMPANIES

Banks Banks

Credit Suisse rules out ‘risky activities’ HBOS senior

Lender’s future focus is to
support private banking
and wealth management
RALPH ATKINS — BERN
Credit Suisse plans to stop its invest-
ment bankers engaging in “overly risky
activities” by refusing to set them exter-
nal profit targets, the Swiss bank’s new
chief executive has told shareholders.
Tidjane Thiam said the job of Credit
Suisse’s investment bankers would be
primarily to support the lender’s expan-
sion in private banking and wealth man-
agement.
That would require a shift away from
“short-term trading activities”. His
comments came at a shareholders’
meeting in Bern, Switzerland, which
overwhelmingly approved a SFr6bn
($5.9bn) capital increase that is part of a
wide-ranging strategic overhaul of
Credit Suisse announced by Mr Thiam
on October 21.
As well as a 20 per cent reduction in
assets at the investment bank, his plans
foresee a significant expansion of Credit
Suisse’s activities in managing the
wealth of the world’s richest, especially
in Asia. The bank would withdraw from
“those activities that produce volatile
earnings and are capital intensive”, Mr
Thiam confirmed to shareholders.
Last month, Credit Suisse stopped
Banks. Balance sheet push
acting as a market maker in European
government bond markets, and Mr
Thiam, former head of the UK insurer
Prudential, said the investment bank’s
“right-sizing process” would be com-
pleted by the end of the year.
Credit Suisse’s “new approach” to
investment banking was reflected in the
decision not to set external profit targets
for the two divisions of its investment
bank. “This is to ensure that our bank-
ers do not have incentives to engage in
overly risky activities,” Mr Thiam said.
“The investment bank is there prima-
rily to support our ambitions in the pri-
vate banking and wealth management
space.”
Mr Thiam said the “new wealth” in
emerging markets targeted by Credit
Suisse was owned mainly by first-gener-
ation entrepreneurs — in contrast to
western Europe, where wealth “was cre-
ated four or five generations ago”.
Much of the new wealth is held in
“illiquid form” — factories, for instance.
Rather than short-term trading, Credit
Suisse investment bankers would look
for “longer-term fee opportunities”
from managing such wealth.
The Credit Suisse chief executive has
already raised eyebrows in finance cir-
cles by not setting return on equity tar-
gets for the bank, arguing that such
ratios are subject to many uncertainties.
Instead he has set three-year earnings
growth targets for the Asia-Pacific divi-
sion, international wealth management
and Swiss operations.
Credit Suisse’s plans for a SFr1.32bn
private placement and a SFr4.7bn rights
issue were approved by about 95 per
cent of shareholders.
Mr Thiam told the nearly 600 share-
holders who attended the Bern meeting
that the bank’s Swiss operations were
“central to our strategy”.
It was “a great advantage” to have “a
leading position in one of the most
advanced and most enterprising econo-
mies in the world”.
Credit Suisse plans to list up to 30 per
cent of its Swiss universal bank by 2017.
Results of the capital increase will be
announced on December 3.
managers face
fresh probe as
regulators
blame board
CAROLINE BINHAM AND EMMA DUNKLEY
LONDON
A long-delayed report into failed Brit-
ish bank HBOS laid bare lax regulation
and conflicts of interest at the main UK
watchdog leading up to the financial
crisis.
But the report into the group’s £20.5bn
collapse in 2008 nonetheless concluded
that the blame lay squarely with the
board and senior management. They
now face a fresh probe by regulators and
the threat of being banned from UK
financial services.
HBOS, one of the UK’s biggest lenders,

Investors spoilt for choice as European lenders seek capital
ABN Amro’s listing comes as
Greek banks, Credit Suisse
and StanChart plan offerings
MARTIN ARNOLD — BANKING EDITOR
Like shoppers wandering through a
Christmas market, investors in shares of
European banks are being peppered
with offers of seasonal merchandise.
Today, the Dutch government plans
to raise about €4bn by floating ABN
Amro in the biggest initial public offer-
ing of a European bank since the finan-
cial crisis.
This week, Greece’s four big banks are
also seeking buyers for more than €6bn
in shares to fill capital shortfalls. Else-
where, Credit Suisse and Standard Char-
tered are planning to raise SFr6bn and
$5.1bn respectively to shore up their
balance sheets.
Meanwhile, the UK government has
pledged to keep selling down its multi-
billion-pound stakes in Royal Bank of
Scotland and Lloyds Banking Group.
So far this year, banks have raised
more than $75bn from investors world-
wide, according to Thomson Reuters.
Given all the bank equity still to be
issued in Europe, it is on course to top
last year’s $93bn total, though it
remains well below the record $236bn
raised in 2009 when the financial crisis
forced many banks to raise capital.
James Chappell, banks analyst at Ber-
ABN is being pitched as
a stock that could be
attractive in the low
interest rate environment
enberg, says investors remain cautious
about investing in Europe’s banks. “Peo-
ple are quite uncertain about the eco-
nomic outlook at the moment in Europe
and you have uncertainty around regu-
lation,” he says.
“The third-quarter numbers have
seen more revenue weakness in Europe,
so people are doubling down on US
banks where there is more prospect for
rising interest rates and higher eco-
nomic growth.”
As ABN prepares to float in Amster-
dam today with a market value of about
€17bn, analysts say there are some rea-
sons why it may stand out as a more
attractive investment than others in the
sector.
First, the bank is being pitched to
investors as a defensive yield stock that
could be attractive in the existing low
interest rate environment. “You have
got no growth, so where is your return
going to come from — it has to be the div-
idend,” says Mr Chappell.
The Dutch ABN has promised to pay out 40 per
government cent of its profits in dividends until 2017
plans to raise and half of them after that. Analysts
about €4bn by estimate it will make a net profit of
floating ABN about €2bn this year and pay a €0.85
Amro in the per share dividend, representing a yield
biggest IPO of a of about 5 per cent at the likely IPO price
European bank of €18 per share.
since the Second, ABN is expected to be valued
financial crisis at a discount to its larger local rival ING,
Jock Fistick/Bloomberg
even though it is generating a better per-
formance on some measures. In the first
nine months of the year, ABN made a
return on equity of 14 per cent, one of
the highest in the sector and above the
comparable figure of 11.6 per cent at
ING.
Yet if ABN floats at €18 per share it
will have a premium of about 6 per cent
to its tangible book value, which meas-
ures its net asset value excluding good-
will and other intangibles. That com-
pares to ING’s premium of about 15 per
cent to tangible book value.
Advisers to ABN say its managers
have been forced to accept the discount
to ING because their bigger rival has
more growth potential thanks to its dig-
ital banking operations in countries
such as Germany and Spain.
There are other reasons why investors
may be cautious about buying ABN
shares. The bank, which was once so
dominant in the Netherlands that it
referred to itself simply as De Bank, is
still strongly associated with being one
of the big victims of the financial crisis.
In 2007, ABN ran into trouble after an
ambitious overseas expansion and was
acquired and dismembered by rivals
Royal Bank of Scotland, Santander and
Fortis. That deal ultimately led to RBS
having to be rescued by the UK govern-
ment. When the financial crisis hit, the
remaining Dutch rumps of ABN and
Fortis had to be bailed out by the gov-
ernment at a cost of €28bn.
The bank being floated today bears
little resemblance to its pre-crisis prede-
cessor. Yet there is still some concern
about its capital levels. ABN’s common
equity tier one ratio — a key measure of
capital to risk-weighted assets — was
above most rivals at 14.8 per cent in Sep-
tember. However, its leverage ratio —
measuring capital against total assets —
is less strong.
Because of the recent requirement
from regulators to include off-balance
sheet exposures at its large clearing
business, which has €12bn of customer
loans, the bank’s leverage ratio was 3.5
per cent at the end of September. This is
below the Dutch government’s planned
minimum of 4 per cent.
A final potential poison pill at ABN is
The Dutch that investors are not being offered
shares in the bank itself, but in an inde-
bank has pendent foundation.
promised to This body has the power to block a
pay out 40% hostile takeover of the bank for up to
of its profits two years if it deems the deal to be
against shareholder interests, removing
in dividends this potential — albeit unlikely — upside
until 2017 to the shares.
was given emergency government
assistance of up to £25.4bn under a
secret Bank of England programme
from October 2008. It had to be rescued
via a government-ordained takeover by
the Lloyds Banking Group.
Taxpayers took a 43 per cent stake in
the merged bank to prop it up, although
the government is selling its stake,
which currently stands at just under 10
per cent. The sell-off is expected to be
completed by spring 2016.
Criticising the previous City regulator,
yesterday’s report said the Financial
Services Authority should not have
closed a “materially flawed” earlier
investigation after sanctioning just one
person. At a minimum, the FSA should
have investigated HBOS’s former chief
executive, Andy Hornby, the report
said, adding: “The failure to do so was
not reasonable.”
The Prudential Regulation Authority
HBOS board ‘failed to set
an appropriate strategy,
and also failed to challenge
a flawed business model’
and Financial Conduct Authority — the
successor bodies to the FSA — said yes-
terday they will now “consider whether
any former senior managers of HBOS
should be the subject of an enforcement
investigation with a view to prohibition
proceedings”, with a decision in early
2016.
Those senior managers include
Mr Hornby, now chief operating officer
of private equity-owned betting and
gaming company Gala-Coral; Lord Ste-
venson, HBOS’s first and only chairman;
and James Crosby, Mr Hornby’s prede-
cessor.
Mr Crosby served simultaneously as
HBOS chairman and a deputy chairman
of the FSA until 2009, when he resigned
amid criticism of his alleged conflict of
interest.
The report said Mr Crosby’s presence
on the watchdog’s board while still head
of HBOS “could have resulted in the FSA
treating HBOS more leniently” —
although the review found no evidence
of this.
While the heads of other British banks
contacted senior management at the
FSA when they had concerns, the report
said Mr Crosby tended to contact the
manager of the supervision team
directly.
Andrew Bailey, head of the PRA, said
the report “concluded that the board
and senior executive management of
HBOS failed to set an appropriate strat-
egy, and also failed to challenge a flawed
business model”.
“The paradox of the story is that at the
time, and indeed up until quite near to
its failure, HBOS was widely regarded as
a success story,” he said.
A fresh investigation could lead to a
financial services ban on individuals,
but those people could not be fined due
to a statute of limitations.

Contracts & Tenders Banks

German co-operatives DZ and WGZ agree to merger

JAMES SHOTTER — FRANKFURT
DZ Bank and WGZ Bank, the central
banks for Germany’s sprawling
co-operative banking sector, are to
merge in a deal that will create the
country’s third-largest banking group.
The two groups, which provide a range
of national and international banking
services for Germany’s 1,000-odd
mutual lenders, said that the new entity
would begin operating next August.
Between them, they have assets of
€501bn, ranking them behind Deutsche
Bank, which has assets of €1.7tn, and
Commerzbank, which has €564bn.
The proposed tie-up is the largest deal
in the German bank sector — which is
composed of private, mutual and
publicly owned lenders — since Deut-
sche’s takeover of Postbank in 2010.
It comes after several previous efforts
to combine DZ Bank and WGZ Bank
ended in failure.
The new bank will be headed by Wolf-
gang Kirsch, currently chief executive
of DZ, while DZ’s chairman Helmut
Gottschalk will lead the supervisory
board. Their counterparts at WGZ,
Hans-Bernd Wolberg and Werner
Böhnke, will become their deputies.
DZ posted a net profit of €2.16bn last
year, more than any other German
bank, while its smaller counterpart
WGZ managed a net profit of €234m.
Mr Kirsch said that the timing of the
merger made sense, given the continu-
ing pressures on the banking system,
including ultra-low interest rates and
tougher regulatory requirements.
“Central banks will continue to try to
keep interest rates artificially low for
the foreseeable future . . . as a result of
this, banks’ interest income will remain
under pressure,” Mr Kirsch said.
He added: “In our market environ-
ment, we are experiencing intense price
competition, particularly in the credit
‘Central banks will
continue trying to
keep interest rates
artificially low’
business, which is also characterised by
the arrival of new market participants.”
Mr Kirsch said the combination was
expected to yield synergies of at least
€100m a year, partly due to eradicating
duplication and increased opportunities
for cross-selling products.
He added that there would be
“moderate” job cuts.
At the end of June, DZ’s fully applied
core tier one capital ratio — a closely
watched measure of financial strength
— stood at 11.8 per cent. WGZ’s was 13.1
per cent.
Mr Kirsch said that WGZ would make
up around 25 per cent of the new bank,
and DZ around 75 per cent, but added
that the precise ratio would be deter-
mined by auditor KPMG.
Friday 20 November 2015
Transport
Bombardier sells 30% stake in train unit to CDPQ
Company shelves plan for
IPO as Quebec pension
fund says it will pay $1.5bn
GUY CHAZAN — BERLIN
Canadian aircraft and train maker Bom-
bardier was forced for a second time in a
month to turn to its home province for a
cash infusion as it announced the sale of
a 30 per cent stake in its rail business to
the Quebec public pension fund man-
French gas supplier targets US rebound with deal for rival
Chief says ambitious $13.4bn
takeover of Airgas will pay off
despite shareholders’ gloom
ED CROOKS — NEW YORK
Benoît Potier, chief executive of Paris-
based Air Liquide, had reached the most
sensitive phase of negotiations to buy
Airgas of the US when the terrorist
attacks of November 13 hit his home
city, killing 129 people.
He was at home, watching the terrible
news come in all night. “Your kids are
out having parties: my daughter was in
one of those restaurants just a week ago.
So it’s a big shock,” he said. The terrorist
attacks provided a sombre backdrop for
the final stages of the negotiations, but
the two companies concluded a deal,
resulting in Tuesday’s announcement of
Air Liquide’s agreed takeover of Airgas
for $13.4bn, including debt.
The deal is an ambitious move, one of
the largest ever acquisitions of a US
materials company by a European
group. It will make Air Liquide the
world’s largest supplier of industrial
gases, which include oxygen, nitrogen,
hydrogen, carbon dioxide and helium,
used in industries such as manufactur-
ing, construction and healthcare.
The initial reaction from the stock
market, though, was unenthusiastic.
Air Liquide’s shares fell 7 per cent on
Wednesday, as investors digested what
was described by David Silver, an
analyst at Morningstar, as a “generous”
price. They also worried about Air Liq-
uide taking on more debt to increase its
exposure to US manufacturing, which
has shown unimpressive growth this
year, in part because of the commodity
price slump.
Mr Potier believes that adverse reac-
tion will prove shortlived. “We lost 7 per
cent, which is not good,” he told the
Financial Times. “But we just need to
wait another week or so, and give time
to absorb the news, and the time it takes
to recognise the value.”
There is no doubt that the offer looks
attractive for Airgas shareholders. At
$143 in cash per share, it is at a 51 per
cent premium to the average Airgas
share price over the past month.
It is also double the $70 per share that
Air Products, another US gases com-
pany, offered to pay in a hostile takeover
battle in 2010-11. That bid eventually
Technology
Starboard hits out at Yahoo
HANNAH KUCHLER — SAN FRANCISCO
Activist investor Starboard Value is
urging Yahoo to abandon plans to spin-
off its stake in Chinese ecommerce
group Alibaba and switch to selling its
core internet business, which ranges
from Yahoo Mail to Fantasy Football.
In an open letter sent Wednesday night,
Starboard accused Marissa Mayer,
Yahoo chief executive, and chairman
Maynard Webb, of having a “dismissive
approach” to the investor’s “serious con-
cerns” about the future of the company,
despite having held several conversa-
tions and meetings with them.
Jeffrey Smith, a managing partner at
Starboard, said the planned spin-off of
Yahoo’s 15 per cent stake in the Chinese
group, worth about $29bn, in a com-
Legal Notices
ager for $1.5bn. The Caisse de Dépôt et
Placement du Québec will acquire con-
vertible shares in a new holding com-
pany to be formed out of the group’s
Bombardier Transportation division.
The deal values the company at $5bn.
Only last month, Bombardier sold a
near-50 per cent stake in its troubled
C Series passenger jet programme to the
Quebec government in exchange for a
$1bn lifeline.
Bombardier has been beset by prob-
lems with the C Series, an ambitious
There is a compelling strategic case for the Air Liquide-Airgas deal, say Benoît Potier, below, and Peter McCausland, below right — Fabrice Dimier/Bloomberg
How the companies compare
2014 gas & services sales (%)
Air Liquide (€13.9bn)
Americas Europe
24
Middle East 48
& Africa 3
25
Asia Pacific
Source: Air Liquide
pany to be known as Aabaco, was not
the “best alternative”.
“If you stay on the current path, we
believe the potential penalty for being
wrong is just too great, and the potential
reward for being right is not materially
better than the other alternative,” Mr
Smith wrote.
Yahoo shares slipped 0.2 per cent to
$32.90 by lunchtime trading in New
York yesterday. Shares have fallen 34
per cent this year, despite the plan to
spin-off the stake to give shareholders
direct access to the Alibaba investment.
The plan was formed under pressure
from Starboard but has faced setbacks,
while Ms Mayer has struggled in her
mission to turn round the core business.
Aabaco was due to be formed in late
2015, but the plan stumbled when US
tax authorities refused to rubber stamp
the deal.
Yahoo decided to press ahead on
advice of its lawyers that the spin-off is
the most tax efficient way to hand the
Alibaba stock to shareholders. In the let-
ter, Starboard, a top 30 investor, said it
agreed with Yahoo’s assessment but that
it was clear the market had taken a “dim
view” of the strategy and appeared to be
valuing the core business at just over
$2bn.
Starboard believes the most “prudent
path” is to sell the core business and
return the money to shareholders
through share buybacks and dividends.
★ FINANCIAL TIMES
COMPANIES
attempt to break into the narrow-body
commercial jet market dominated
by Airbus and Boeing. Cost and timeta-
ble overruns have placed a strain on the
company’s profitable business jet oper-
ations and on the group more broadly.
Bombardier last month reported
a $4.9bn loss for the third quarter.
It confirmed it had sought unsuccess-
fully to sell a stake in the C Series to Air-
bus and it has been reported it could sell
a stake to other companies.
The sale of the stake in its rail business
Interview. Benoît Potier
Air Liquide + Airgas (€17.8bn)
Middle East
& Africa 2
Asia Pacific
19
42
Europe 37
Americas
Mining
Indonesia in extortion probe
AVANTIKA CHILKOTI — JAKARTA
Indonesia has launched an investiga-
tion into alleged attempts by senior
officials to extort a stake in Freeport-
McMoRan’s Indonesian unit in return
for an extension of the US mining com-
pany’s right to operate in the country.
Sudirman Said, minister of energy and
mineral resources, filed a complaint
with the House of Representatives eth-
ics committee this week alleging that
the Speaker, Setya Novanto, had
demanded Freeport divest shares to
The Speaker,
Setya Novanto,
has told local
media that his
comments were
made as a joke
President Joko Widodo and his vice-
president, Jusuf Kalla.
“We will wait and see how the house
settles this,” Mr Kalla told broadcaster
BeritaSatu, denying any involvement.
When asked whether Mr Widodo had
reacted, he added: “Of course, anyone
will get angry if their name is tagged.”
Mr Widodo’s office did not respond to an
emailed request for comment.
The matter has raised fresh concerns
around corruption in Southeast Asia’s
largest economy. Mr Novanto told local
media his comments were made in jest.
marks a volte-face for Bombardier,
which announced in March that it
planned to float shares in the unit. It had
considered a competitive auction for the
private placement of a minority stake.
There were indications earlier in the
year that Bombardier might be explor-
ing a sale of BT to an industry player,
with reports saying it was in talks with
two Chinese state-owned trainmakers.
But Lutz Bertling, president of Bom-
bardier Transportation, said that the
idea of an investment by CDPQ had
failed when a court in Delaware upheld
Airgas’s “poison pill” defence. Since
then, the S&P 500 index has risen 56 per
cent, and Air Products shares by about
the same amount, while Airgas’s stock
has increased 117 per cent.
The Air Liquide deal is a personal vin-
dication for Peter McCausland, who
founded Airgas in the early 1980s and is
now executive chairman.
“They’ve made a good offer for our
shareholders, and we’re all about creat-
ing value,” he told the FT.
He and Mr Potier agree, though, that
the bid terms are justified by the “very
compelling” strategic case for the deal.
First, said Mr Potier, although Airgas’s
core business of distributing “pack-
The scandal may also add to uncer-
tainty for Freeport as senior politicians
push for an evaluation of the group’s
operations in Indonesia. The miner is
already battling with weak commodity
prices and Indonesia’s ban on the export
of unprocessed minerals.
“We can’t comment because the alle-
gations are being investigated,” said
Riza Pratama, Freeport’s spokesman.
Freeport, which plans to invest
$16bn-$18bn in underground develop-
ment, has been lobbying Jakarta for
affirmation its contract in Indonesia will
be extended beyond 2021. The group
generated 8.4 per cent of its revenue last
year from Indonesia, said Bloomberg,
and had expressed hope over “produc-
tive discussions” with Jakarta.
Amid this week’s scandal, Luhut Pan-
jaitan, co-ordinating minister for politi-
cal, legal and security affairs, appeared
to flip-flop on those reassurances. “The
extension of the Freeport contract can
only be completed through negotiation
two years before the contract expires,”
he said yesterday. “The divestment and
development of a smelter were sup-
posed to be completed by Freeport a
while ago and the company has simply
failed to fulfil those requirements.”
The Indonesian government, which
has a 9.4 per cent stake in Freeport Indo-
nesia, had set a deadline of October 14
for the company to lay out proposals for
a further 10.6 per cent stake sale.
emerged as the “most attractive option”.
He said the administrative costs
would be significantly lower than if the
company had pursued an initial public
offering, with a lower execution risk. “A
lot of recent IPOs have not delivered
what they promised,” he said. He also
said CDPQ was “focused on the long-
term development of the company”.
Mr Bertling said the proceeds from
the sale of the stake to CDPQ would go
towards “general business purposes” of
Bombardier. “These injections give us
aged” gases, in cylinders or other small
quantities, might seem unglamorous, it
was actually a very attractive market.
There was repeat business, cash flow
was strong, and Airgas has been suc-
cessful in adding sales of
related products and
services alongside its
gas distribution.
“The merchant busi-
ness is not excit-
ing: it is a little
bit cumber-
some, boring,”
said Mr Potier.
“[But] this is a
simple, small
but very, very
Legal Notices
17
financial flexibility. We can complete all
the programmes and have a safety net.”
Bombardier Transportation, with
39,700 employees, builds trains and
provides maintenance services, system
integration and signalling. The com-
pany has a $30bn backlog. Over the first
nine months of this year, its earnings
before interest and tax were $342m,
with a profit margin of 5.6 per cent.
Montreal-based CDPQ is one of Can-
ada’s leading institutional fund manag-
ers with $240.8bn in net assets.
efficient business.” Putting Air Liquide’s
production and bulk sales together with
Airgas’s distribution would create a ver-
tically integrated company that can cap-
ture opportunities for profit wherever
they emerge, he added.
Second, there is a real prospect that
technology will shake up the gas distri-
bution business. The “industrial inter-
net” — equipment fitted with sensors
and communications to generate data
that can be analysed to improve per-
formance — is likely to mean that signif-
icant long-term productivity gains will
be possible in the gas cylinder business,
Mr Potier believes.
Third, the deal increases Air Liquide’s
exposure to the US, which is expected to
be the best market for industrial gases
in the developed world over the next
half-decade. In 2014 the company made
24 per cent of its revenues in the Ameri-
cas. Adding in Airgas, which makes
almost all of its sales in the US, that pro-
portion would rise to 42 per cent.
Although US manufacturing has been
affected by falling commodity prices,
which have hit demand for products
such as mining equipment and the steel
tubes used in oil and gas wells, Air Liq-
uide still expects the US industrial gases
market to grow by about 4.4 per cent
every year from 2014-20. That is much
faster than the expected annual growth
of 2-2.5 per cent in Europe, and just 1-2
per cent in Japan.
Air Liquide’s executives are confident
the potential pitfalls of the deal are sur-
mountable. US antitrust regulators may
order some asset sales, Mr Potier
expects, but the amounts are likely to be
“reasonable”.
Paying for the deal means Air Liquide
taking on a lot of debt: essentially the
entire $13.4bn price as a bank bridging
loan. That will be refinanced as soon as
possible through bond sales, bank loans
and a €3bn-€4bn share issue, so the
company can keep an A or A-minus
credit rating.
With ample liquidity making the
deal possible, said Mr Potier,
this was a good time to be buy-
ing Airgas, in spite of appear-
ances. “We’ve been absorbing
the shock in the US of
the low oil price, and
I don’t know exactly
how long it will
take, but the US
market is going to
rebound,” he said.
18 ★ FINANCIAL TIMES Friday 20 November 2015

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.19% -0.02% -0.10% -0.627% -0.98% -1.06%

0.81% 0.43% 1.07% 1.41% 0.67% 0.845% 0.592% 0.286%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World Oct 20 - Nov 19 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
11,085.44 19,859.81
2,079.71 13,704.19 6,345.13
13,428.92 6,278.97 2,042.98
2,018.94 10,238.10 18,207.15 1,988.91

Day -0.19% Month 2.31% Year 1.38% Day 0.22% Month -2.39% Year -10.35% Day 0.81% Month -0.24% Year -5.37% Day 1.14% Month 2.81% Year NaN% Day 1.07% Month 8.57% Year 14.50% Day 1.33% Month -2.04% Year 1.11%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,074.28 1,502.33
44,599.74 10,354.70 22,989.22 3,019.03
44,523.01 22,500.22
4,840.12 1,431.61 10,157.50
2,919.83
Day -0.02% Month 3.84% Year 7.90% Day 0.21% Month 0.25% Year 1.17% Day 0.43% Month 4.46% Year 10.50% Day 0.91% Month 1.20% Year -0.75% Day 1.41% Month -2.46% Year -4.37% Day 1.17% Month -3.66% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,719.19 47,819.77 4,915.10 3,617.06
27,364.92
17,168.61 47,025.87 22,191.99
4,695.10 22,172.64 3,320.68 25,841.92

Day -0.10% Month 2.95% Year 0.20% Day 0.81% Month 0.78% Year -10.46% Day 0.17% Month 4.51% Year 15.31% Day 0.45% Month -1.02% Year 14.51% Day 1.36% Month 6.66% Year 47.25% Day 1.41% Month -5.04% Year -8.24%

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 13597.20 13773.89 Cyprus CSE M&P Gen 69.87 71.02 Italy FTSE Italia All-Share 23922.91 23813.36 Philippines Manila Comp 6825.38 6772.92 Taiwan Weighted Pr 8477.20 8340.47 Cross-Border DJ Global Titans ($) 239.36 238.37
Australia All Ordinaries 5293.30 5189.10 Czech Republic
PX 992.18 992.13 FTSE Italia Mid Cap 34342.82 34179.86 Poland Wig 49146.10 49345.31 Thailand Bangkok SET 1384.97 1376.82 Euro Stoxx 50 (Eur) 3451.46 3431.92
S&P/ASX 200 5242.60 5133.10 Denmark OMXC Copenahgen 20 988.99 985.80 FTSE MIB 22191.99 22091.56 Portugal PSI 20 5351.38 5378.60 Turkey BIST 100 80514.17 81152.85 Euronext 100 ID 952.68 950.38
S&P/ASX 200 Res 2640.10 2563.30 Egypt EGX 30 6413.97 6407.33 Japan 2nd Section 4722.34 4701.99 PSI General 2494.50 2496.23 UAE Abu Dhabi General Index 4260.06 4196.85 FTSE 4Good Global ($) 5541.91 5500.40
Austria ATX 2490.79 2465.12 Estonia OMX Tallinn 878.71 879.33 Nikkei 225 19859.81 19649.18 Romania BET Index 7207.01 7174.47 UK FT 30 2893.10 2869.10 FTSE All World 270.36 268.55
Belgium BEL 20 3701.84 3683.38 Finland OMX Helsinki General 8670.91 8673.70 S&P Topix 150 1330.76 1320.37 Russia Micex Index 1811.20 1810.48 FTSE 100 6329.93 6278.97 FTSE E300 1502.33 1495.83
BEL Mid 5964.74 5959.39 France CAC 40 4915.10 4906.72 Topix 1600.38 1586.53 RTX 883.82 876.56 FTSE 4Good UK 5754.43 5707.64 FTSE Eurotop 100 2994.00 2983.93
Brazil Bovespa 47819.77 47435.58 SBF 120 3855.14 3844.12 Jordan Amman SE 2000.74 1994.59 Saudi-Arabia TADAWUL All Share Index 7034.08 6953.47 FTSE All Share 3471.04 3446.61 FTSE Global 100 ($) 1340.34 1333.64
Canada S&P/TSX 60 790.00 787.00Germany M-DAX 21270.17 21138.86 Kenya NSE 20 3946.99 3946.99 Singapore FTSE Straits Times 2919.83 2886.08 FTSE techMARK 100 3885.89 3840.48 FTSE Gold Min ($) 849.44 835.25
S&P/TSX Comp 13428.92 13399.97 TecDAX 1826.79 1818.65 Kuwait KSX Market Index 5725.41 5698.10 Slovakia SAX 301.57 301.75 USA DJ Composite 6169.10 6161.21 FTSE Latibex Top (Eur) 2590.90 2575.50
S&P/TSX Met & Min 361.64 368.41 XETRA Dax 11085.44 10959.95 Latvia OMX Riga 599.60 599.50 Slovenia SBI TOP 690.65 690.87 DJ Industrial 17719.19 17737.16 FTSE Multinationals ($) 1514.35 1499.63
Chile IGPA Gen 18645.78 18496.56Greece Athens Gen 670.45 671.82 Lithuania OMX Vilnius 484.30 483.46 South Africa FTSE/JSE All Share 52116.26 51654.54 DJ Transport 8214.60 8191.33 FTSE World ($) 479.36 476.31
China FTSE A200 9649.65 9515.23 FTSE/ASE 20 200.42 200.79 Luxembourg LuxX 1485.09 1486.11 FTSE/JSE Res 20 28479.71 28156.91 DJ Utilities 566.68 562.80 FTSEurofirst 100 (Eur) 4280.65 4259.77
FTSE B35 10927.22 10780.86Hong Kong Hang Seng 22500.22 22188.26 Malaysia FTSE Bursa KLCI 1660.06 1661.53 FTSE/JSE Top 40 46851.60 46464.28 Nasdaq 100 4659.36 4653.44 FTSEurofirst 80 (Eur) 4635.60 4609.40
Shanghai A 3787.89 3737.03 HS China Enterprise 10193.11 10055.28 Mexico IPC 44599.74 44505.59 South Korea Kospi 1988.91 1962.88 Nasdaq Cmp 5074.28 5075.20 MSCI ACWI Fr ($) 406.98 403.67
Shanghai B 379.38 373.39 HSCC Red Chip 4139.63 4095.47 Morocco MASI 9179.31 9179.31 Kospi 200 244.79 241.44 NYSE Comp 10422.10 10429.60 MSCI All World ($) 1691.55 1676.10
Shanghai Comp 3617.06 3568.46Hungary Bux 23070.83 23279.89 Netherlands AEX 469.00 465.93 Spain IBEX 35 10354.70 10261.10 S&P 500 2079.71 2083.58 MSCI Europe (Eur) 1445.99 1446.83
Shenzhen A 2362.07 2291.41India BSE Sensex 25841.92 25482.52 AEX All Share 717.18 712.32 Sri Lanka CSE All Share 7020.18 6981.97 Wilshire 5000 21589.05 21638.00 MSCI Pacific ($) 2291.71 2295.46
Shenzhen B 1208.96 1196.01 S&P CNX 500 6594.55 6507.55 New Zealand NZX 50 5995.25 5979.81 Sweden OMX Stockholm 30 1512.08 1514.18 Venezuela IBC 12466.63 12449.84 S&P Euro (Eur) 1532.35 1522.53
Colombia COLCAP 1125.57 1112.05Indonesia Jakarta Comp 4518.94 4497.91 Nigeria SE All Share 28219.44 28351.28 OMX Stockholm AS 517.54 517.06 Vietnam VNI 601.90 603.34 S&P Europe 350 (Eur) 1541.77 1535.15
Croatia CROBEX 1693.34 1692.41Ireland ISEQ Overall 6687.93 6554.64 Norway Oslo All Share 668.48 668.46 Switzerland SMI Index 9008.65 8990.96 S&P Global 1200 ($) 1878.83 1869.38
Israel Tel Aviv 100 13.59 13.51 Pakistan KSE 100 33949.26 34065.87 Stoxx 50 (Eur) 3266.09 3255.03
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Nov 19 %Chg %Chg Nov 19 %Chg %Chg Nov 19 %Chg %Chg Nov 19 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 24.7 118.79 1.50 Vodafone 184.9 221.50 -1.29 Telefonica 758.4 11.80 0.02 Toyota Motor 738.0 7620.00 21.00 Johnson Matthey 2694.00 9.7 -20.9 Btg 606.00 15.2 -23.8 Primary Health Properties 109.00 296.4 18.4 Industrial Metals 836.65 8.3 -45.2
Amazon.com 14.1 666.01 2.47 Rio Tinto 159.4 2290.00 46.11 Novartis N 412.7 82.37 0.00 Mitsubishi Ufj Fin,. 540.0 835.30 8.30 Astrazeneca 4428.50 9.0 -2.5 Diploma 700.00 14.8 -1.3 Carclo 146.75 26.0 64.0 Automobiles & Parts 7056.28 7.8 -12.3
Allergan 13.5 301.10 -9.70 Lloyds Banking 155.9 73.33 0.09 Nestle N 294.2 69.61 0.00 Mizuho Fin,. 470.2 260.40 0.40 Hikma Pharmaceuticals 2110.00 9.0 6.6 Qinetiq 260.10 13.1 38.4 Chemring 186.50 11.0 -22.0 Industrial Transportation 2741.66 6.1 -3.0
Netflix 12.6 120.18 -0.46 Royal Dutch Shell 152.3 1681.50 14.50 Roche Gs 289.6 250.15 0.00 Softbank . 429.3 6575.00 -87.00 Gkn 301.80 8.0 -12.1 Atkins (ws) 1530.00 11.4 11.5 St. Ives 208.25 10.5 9.6 Construction & Materials 4924.00 5.5 19.2
Facebook Class A 12.5 107.27 -0.51 Royal Dutch Shell 141.3 1666.00 31.62 Total 278.8 46.60 -0.06 Fast Retailing Co., 345.0 48350.00 870.00 Smiths 1006.00 7.8 -8.4 Kaz Minerals 91.50 9.7 -64.7 Moss Bros 106.00 9.3 20.5 Oil & Gas Producers 6137.96 5.5 -13.8
Pfizer 12.1 32.16 -1.15 Imperial Tobacco 119.6 3492.00 -52.42 Daimler Ag Na O.n. 266.8 78.04 0.00 Sumitomo Mitsui Fin,. 294.6 4943.00 45.00 Bae Systems 484.10 7.2 3.4 Premier Oil 76.00 9.4 -54.5 Speedy Hire 34.75 8.6 -56.0 Chemicals 10698.13 5.0 -5.4
Hospira 11.8 89.95 -0.01 Bhp Billiton 118.5 888.70 8.00 Santander 261.2 5.21 0.10 Fanuc 247.7 22055.00 300.00 Royal Mail 476.70 7.2 9.9 Aggreko 992.00 9.2 -33.3 Premier Farnell 107.50 8.0 -38.9 Aerospace & Defense 4030.18 4.9 -15.2
Unitedhealth orporated (delaware) 9.6 111.61 -5.64 Bp 115.8 385.15 2.41 Royal Dutch Shella 247.4 23.91 0.31 Fujitsu 216.8 617.00 22.00 Bg 1038.50 6.8 20.2 Essentra 856.00 9.2 16.9 Oxford Instruments 646.00 7.0 -30.3 Pharmaceuticals & Biotech. 12554.44 4.4 -1.3
Sigma-aldrich 8.7 139.76 -0.05 British American Tobacco 104.1 3860.50 55.10 Intesa Sanpaolo 245.1 3.12 0.00 Nissan Motor Co., 212.4 1309.50 26.00 Crh 1875.00 6.4 20.8 Bodycote 535.00 8.9 -16.9 Charles Taylor 289.00 7.0 15.6 General Industrials 4347.17 4.0 11.6
Keurig Green Mountain 6.3 50.91 10.41 Hsbc Holdings 103.1 525.10 4.53 Ing Groep 232.6 13.29 -0.01 Japan Tobacco . 208.9 4526.00 76.00 Hammerson 612.00 6.2 1.1 Evraz 84.95 8.7 -45.0 Hogg Robinson 66.50 6.8 61.4 Oil Equipment & Services 13150.35 4.0 -20.0
Antofagasta 501.00 5.8 -32.4 Hunting 339.50 8.2 -35.1 Gulf Marine Services 100.50 6.6 0.5 Real Estate Investment Trusts 3373.66 3.4 10.5
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Royal Dutch Shell 1666.00 5.5 -22.4 Firstgroup 106.20 8.1 0.9 Tt Electronics 134.00 6.6 29.5 Electronic & Electrical Equip. 4069.89 3.2 0.8
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Keurig Green Mountain 50.91 10.41 25.70 Qinetiq 260.10 24.40 10.35 Sodexo 88.20 7.91 9.85 Sharp 126.00 6.00 5.00 Tui Ag 1130.00 -3.6 5.3 Poundland 222.70 -18.3 -32.1 Kenmare Resources 0.76 -44.9 -76.5 General Retailers 3131.05 0.0 5.3
The J.m. Smucker 122.31 8.93 7.88 Johnson Matthey 2694.00 229.85 9.35 Casino Guichard 55.03 2.04 3.85 Advantest 1110.00 52.00 4.91 Easyjet 1714.00 -3.2 3.2 Allied Minds 431.60 -8.2 19.4 Johnston Press 46.25 -26.0 -72.1 Travel & Leisure 8534.75 0.1 6.0
Salesforce.com 81.50 4.15 5.37 Investec 542.00 29.23 5.72 Caixabank 3.55 0.09 2.60 Pioneer 331.00 14.00 4.42 Burberry 1279.00 -2.6 -21.8 Spire Healthcare 284.40 -8.2 -24.3 Soco Int 143.00 -18.3 -52.9 Equity Investment Instruments 7332.88 0.4 1.3
Citrix Systems 73.41 2.87 4.07 Nostrum Oil & Gas 366.00 19.20 5.57 B. Sabadell 1.78 0.04 2.53 Dainippon Screen Mfg.co., 873.00 35.00 4.18 Carnival 3442.00 -2.3 17.9 B&m Eur Value Retail S.a. 315.00 -7.5 8.3 Hss Hire 48.25 -15.7 - Mobile Telecommunications 5093.99 0.4 1.6
Alcoa 8.71 0.30 3.57 Acacia Mining 170.80 8.79 5.43 Arcelormittal 4.94 0.12 2.45 Shiseido , 2870.50 107.50 3.89 Int Consolidated Airlines S.a. 582.50 -2.3 19.8 Bovis Homes 904.00 -5.6 2.2 Ferrexpo 29.25 -14.0 -44.8 Personal Goods 25423.35 0.6 3.3
Intercontinental Hotels 2502.00 -2.1 -3.6 Aldermore 262.30 -5.3 - Uk Mail 324.50 -12.9 -32.3 Food & Drug Retailers 2705.20 0.7 -4.4
Downs Downs Downs Downs
Glencore 94.05 -1.9 -68.5 Ophir Energy 90.60 -5.2 -36.0 Brammer 162.25 -10.8 -52.3 Beverages 15576.84 0.7 10.2
Tenet Healthcare New 29.92 -3.13 -9.47 Poundland 222.70 -55.90 -20.06 Altice B 14.38 -0.60 -4.01 Mitsui Chemicals,. 496.00 -7.00 -1.39
G4s 225.80 -1.4 -16.2 Nostrum Oil & Gas 366.00 -5.1 -13.4 Cambian 133.50 -8.6 -34.4 Real Estate & Investment Servic 3046.55 1.0 14.0
Chesapeake Energy 5.48 -0.52 -8.67 Bovis Homes 904.00 -85.00 -8.59 Altice 14.04 -0.54 -3.74 Softbank . 6575.00 -87.00 -1.31
Schroders 2955.00 -0.6 10.2 Thomas Cook 106.00 -4.7 -17.1 Trinity Mirror 160.75 -7.6 1.6 Household Goods 15780.08 1.2 23.5
Southwestern Energy 9.81 -0.74 -6.97 Ophir Energy 90.60 -6.35 -6.55 Bollore 4.29 -0.10 -2.21 Nitto Denko 8369.00 -103.00 -1.22
Persimmon 1840.00 -0.4 16.6 Bwin.party Digital Entertainment 105.90 -4.5 -10.1 Lavendon 136.75 -7.3 -22.9 Banks 3822.54 1.2 -12.5
Anthem 128.76 -8.54 -6.22 Virgin Money Holdings (uk) 353.00 -21.00 -5.61 Zodiac Aerospace 24.95 -0.44 -1.75 Obayashi 1116.00 -13.00 -1.15
Morrison (wm) Supermarkets 154.60 -0.3 -16.2 Virgin Money Holdings (uk) 353.00 -4.3 22.6 Darty 99.25 -7.0 44.9 Nonlife Insurance 2452.18 1.2 26.8
Newfield Exploration 38.56 -2.49 -6.07 Aldermore 262.30 -14.70 -5.31 Endesa 20.06 -0.32 -1.55 Kubota 2014.00 -18.00 -0.89
Whitbread 4515.00 -0.3 -5.7 Zoopla Property 225.00 -4.3 16.4 Goodwin 2240.50 -6.5 -9.3 Mining 8343.13 1.4 -41.5
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
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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
Nov 19 Currency Mid Change Mid Change Mid Change Nov 19 Currency Mid Change Mid Change Mid Change Nov 19 Currency Mid Change Mid Change Mid Change Nov 19 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 9.6529 0.0124 10.3638 0.0996 14.7640 0.1008 Indonesia Indonesian Rupiah 13777.5000 -22.0000 14792.2648 99.9081 21072.6395 83.5056 Poland Polish Zloty 3.9575 -0.0306 4.2490 0.0029 6.0530 -0.0129 ..Three Month 0.6538 -0.0036 0.7018 0.0020 - -
Australia Australian Dollar 1.3886 -0.0237 1.4909 -0.0128 2.1239 -0.0243 Israel Israeli Shekel 3.8837 -0.0174 4.1697 0.0163 5.9401 0.0066 Romania Romanian Leu 4.1409 -0.0340 4.4458 0.0009 6.3334 -0.0165 ..One Year 0.6541 -0.0037 0.7012 0.0020 - -
Bahrain Bahrainin Dinar 0.3774 - 0.4051 0.0034 0.5772 0.0032 Japan Japanese Yen 122.8050 -0.7750 131.8499 0.2740 187.8298 -0.1360 Russia Russian Ruble 64.6825 -0.3859 69.4465 0.1681 98.9316 -0.0377 United States United States Dollar - - 1.0737 0.0090 1.5295 0.0085
Bolivia Bolivian Boliviano 6.9100 0.0100 7.4189 0.0725 10.5688 0.0739 ..One Month 122.8050 -0.7751 131.8499 0.2741 187.8297 -0.1362 Saudi Arabia Saudi Riyal 3.7502 - 4.0264 0.0336 5.7359 0.0318 ..One Month - - 1.0736 -0.4474 1.5295 0.0085
Brazil Brazilian Real 3.7276 -0.0517 4.0021 -0.0217 5.7014 -0.0470 ..Three Month 122.8047 -0.7756 131.8499 0.2741 187.8294 -0.1368 Singapore Singapore Dollar 1.4138 -0.0097 1.5179 0.0024 2.1624 -0.0027 ..Three Month - - 1.0734 -0.4473 1.5295 0.0085
Canada Canadian Dollar 1.3268 -0.0076 1.4245 0.0038 2.0293 -0.0003 ..One Year 122.8035 -0.7780 131.8499 0.2740 187.8297 -0.1381 South Africa South African Rand 14.0255 -0.1970 15.0585 -0.0842 21.4520 -0.1805 ..One Year - - 1.0724 -0.4474 1.5297 0.0085
Chile Chilean Peso 711.3450 -3.4550 763.7374 2.6885 1087.9996 0.7851 Kenya Kenyan Shilling 102.2000 - 109.7273 0.9148 156.3145 0.8678 South Korea South Korean Won 1161.7500 -10.5000 1247.3159 -0.7810 1776.8926 -6.1057 Venezuela Venezuelan Bolivar Fuerte 6.3078 0.0148 6.7723 0.0722 9.6477 0.0760
China Chinese Yuan 6.3840 -0.0009 6.8542 0.0562 9.7643 0.0528 Kuwait Kuwaiti Dinar 0.3039 -0.0002 0.3263 0.0025 0.4648 0.0023 Sweden Swedish Krona 8.6632 -0.0715 9.3013 0.0014 13.2503 -0.0352 Vietnam Vietnamese Dong 22472.5000 7.5000 24127.6643 209.0831 34371.7025 202.2424
Colombia Colombian Peso 3082.0250 -18.8750 3309.0241 7.4890 4713.9460 -2.5390 Malaysia Malaysian Ringgit 4.3445 -0.0465 4.6645 -0.0106 6.6449 -0.0338 Switzerland Swiss Franc 1.0143 -0.0049 1.0890 0.0038 1.5513 0.0011 European Union Euro 0.9314 -0.0078 - - 1.4246 -0.0040
Costa Rica Costa Rican Colon 531.5800 -0.0400 570.7322 4.7154 813.0497 4.4530 Mexico Mexican Peson 16.5621 -0.1945 17.7819 -0.0588 25.3316 -0.1551 Taiwan New Taiwan Dollar 32.6295 -0.1710 35.0327 0.1100 49.9067 0.0170 ..One Month 0.9313 -0.0078 - - 1.4245 -0.0040
Czech Republic Czech Koruna 25.1730 -0.2060 27.0271 0.0060 38.5020 -0.0996 New Zealand New Zealand Dollar 1.5202 -0.0333 1.6322 -0.0218 2.3252 -0.0377 Thailand Thai Baht 35.8800 -0.1200 38.5227 0.1934 54.8783 0.1221 ..Three Month 0.9311 -0.0078 - - 1.4244 -0.0040
Denmark Danish Krone 6.9483 -0.0591 7.4601 -0.0007 10.6274 -0.0309 Nigeria Nigerian Naira 199.2300 - 213.9038 1.7832 304.7216 1.6917 Tunisia Tunisian Dinar 2.0367 -0.0121 2.1867 0.0053 3.1151 -0.0012 ..One Year 0.9301 -0.0078 - - 1.4238 -0.0040
Egypt Egyptian Pound 7.8349 0.0285 8.4119 0.1004 11.9834 0.1098 Norway Norwegian Krone 8.5989 -0.0963 9.2323 -0.0255 13.1521 -0.0734 Turkey Turkish Lira 2.8405 -0.0266 3.0497 -0.0028 4.3445 -0.0163
Hong Kong Hong Kong Dollar 7.7501 -0.0007 8.3210 0.0686 11.8538 0.0647 Pakistan Pakistani Rupee 105.4600 0.0150 113.2274 0.9599 161.3007 0.9183 United Arab Emirates UAE Dirham 3.6731 0.0003 3.9436 0.0332 5.6179 0.0316
Hungary Hungarian Forint 289.0328 -2.5564 310.3208 -0.1348 442.0746 -1.4341 Peru Peruvian Nuevo Sol 3.3545 -0.0040 3.6016 0.0258 5.1307 0.0224 United Kingdom Pound Sterling 0.6538 -0.0036 0.7020 0.0020 - -
India Indian Rupee 66.2000 -0.1150 71.0758 0.4701 101.2527 0.3872 Philippines Philippine Peso 47.1350 - 50.6066 0.4219 72.0928 0.4002 ..One Month 0.6538 -0.0036 0.7019 0.0020 - -
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 Nov 19 Nov 18 Nov 17 Nov 16 Nov 13 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 2893.10 2869.10 2873.20 2812.30 2800.60 0.00 3110.40 2575.90 Forestry & Paper 35.62 General Retailers 4.89 Pharmace & Biotech -6.03 FTSE 100 Price Change FTSE 100 Price Change
Nov 19 chge% Index Nov 18 Nov 17 ago yield% Cover ratio adj Return FT 30 Div Yield 1.72 1.74 1.73 1.77 1.78 0.00 3.93 2.74 Software & Comp Serv 25.41 Travel & Leisure 4.78 Gas Water & Multi -6.23 3I Group PLC 496.70 7.80 Kingfisher PLC 356.40 7.20
FTSE 100 (100) 6329.93 0.81 7032.84 6278.97 6268.76 6678.90 3.93 1.45 17.55 241.04 4953.33 P/E Ratio net 25.95 25.70 25.76 25.21 25.08 0.00 19.44 14.26 Nonlife Insurance 25.02 Consumer Services 4.55 Industrial Transport -6.53 Aberdeen Asset Management PLC 338.90 1.70 Land Securities Group PLC 1250 11.00
FTSE 250 (250) 17144.72 0.33 19048.56 17089.09 17084.79 15604.52 2.50 2.10 19.03 407.44 11906.40 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Household Goods & Ho 20.37 Tech Hardware & Eq 4.47 FTSE 100 Index -6.82 Admiral Group PLC 1641 11.00 Legal & General Group PLC 268.30 2.00
FTSE 250 ex Inv Co (211) 18647.73 0.33 20718.47 18587.27 18579.25 16787.12 2.52 2.22 17.90 448.16 13206.04 FT 30 hourly changes Fixed Line Telecomms 17.14 FTSE 250 Index 4.29 Food & Drug Retailer -7.06 Anglo American PLC 450.75 1.30 Lloyds Banking Group PLC 73.33 -0.67
FTSE 350 (350) 3524.59 0.73 3915.98 3499.17 3494.32 3630.05 3.68 1.53 17.79 125.45 5558.22 8 9 10 11 12 13 14 15 16 High Low Construct & Material 14.17 FTSE SmallCap Index 3.85 Utilities -8.31 Antofagasta PLC 501.00 1.00 London Stock Exchange Group PLC 2585 33.00
FTSE 350 ex Investment Trusts (311) 3502.09 0.74 3890.98 3476.52 3471.52 3610.76 3.71 1.53 17.60 125.72 2843.71 2869.1 2898.5 2904 2902.1 2901.6 2898.3 2895.4 2892.6 2894.1 2905.6 2869.1 Real Est Invest & Se 13.77 Support Services 1.24 Chemicals -10.52 Arm Holdings PLC 1084 18.00 Marks And Spencer Group PLC 519.50 4.50
FTSE 350 Higher Yield (107) 3220.88 0.64 3578.54 3200.49 3190.47 3613.45 5.42 1.28 14.43 168.80 5210.13 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Technology 12.69 Personal Goods 1.09 Banks -14.30 Ashtead Group PLC 1052 21.00 Meggitt PLC 388.40 1.90
FTSE 350 Lower Yield (243) 3493.75 0.82 3881.72 3465.41 3466.81 3291.32 1.90 2.25 23.37 67.57 3692.19 Leisure Goods 11.99 Mobile Telecomms 0.61 Electricity -15.59 Associated British Foods PLC 3504 59.00 Merlin Entertainments PLC 412.80 3.00
FTSE SmallCap (289) 4566.43 0.24 5073.51 4555.67 4554.44 4305.78 2.90 1.47 23.41 116.88 6243.75 Tobacco 10.57 Life Insurance 0.33 Automobiles & Parts -18.02
FTSE SmallCap ex Inv Co (153) 4134.37 0.09 4593.47 4130.60 4127.96 3716.49 2.82 2.05 17.24 103.96 5937.57 FX: EFFECTIVE INDICES Consumer Goods 9.67 Equity Invest Instr -0.15 Oil & Gas Producers -19.02
Astrazeneca PLC 4428.5 19.50 Mondi PLC 1494 23.00
Aviva PLC 504.00 8.00 Morrison (Wm) Supermarkets PLC 154.60 0.10
FTSE All-Share (639) 3471.04 0.71 3856.48 3446.61 3441.97 3564.14 3.65 1.53 17.94 122.31 5537.02 Financial Services 9.32 Health Care Eq & Srv -2.84 Oil & Gas -19.13
Nov 18 Nov 17 Mnth Ago Nov 19 Nov 18 Mnth Ago Babcock International Group PLC 1000.00 6.00 National Grid PLC 939.50 16.60
FTSE All-Share ex Inv Co (464) 3434.93 0.72 3816.36 3410.28 3405.42 3532.42 3.69 1.54 17.60 122.57 2835.29 Media 8.27 Electronic & Elec Eq -3.19 Aerospace & Defense -20.18 Bae Systems PLC 484.10 7.50 Next PLC 7805 -
FTSE All-Share ex Multinationals (574) 1195.40 0.39 1100.79 1190.79 1192.15 1117.88 2.78 1.59 22.63 31.43 2033.42 Australia 91.01 91.42 90.34 Sweden 78.40 78.19 79.18 Beverages 7.94 Financials -3.48 Industrial Eng -20.54 Barclays PLC 229.95 2.05 Old Mutual PLC 202.10 2.50
FTSE Fledgling (103) 7769.35 0.11 8632.10 7760.64 7757.82 6738.06 2.52 1.21 32.75 162.93 13974.10 Canada 88.46 88.58 90.57 Switzerland 157.98 158.65 160.54 Real Est Invest & Tr 7.37 Industrials -4.09 Oil Equipment & Serv -22.08 Barratt Developments PLC 577.00 -0.50 Pearson PLC 815.00 3.00
FTSE Fledgling ex Inv Co (51) 10680.43 0.29 11866.44 10649.16 10661.15 8291.31 2.72 1.51 24.36 207.13 18669.16 Denmark 105.07 105.07 106.34 UK 93.98 93.97 91.44 Food Producers 7.13 FTSE All{HY-}Share Index -4.74 Basic Materials -37.09 Berkeley Group Holdings (The) PLC 3093 -46.00 Persimmon PLC 1840 -25.00
FTSE All-Small (392) 3169.02 0.23 3520.92 3161.75 3160.88 2976.28 2.88 1.46 23.75 80.39 5563.79 Japan 125.47 125.57 126.79 USA 106.48 106.37 101.92 Telecommunications 6.76 NON FINANCIALS Index -5.18 Mining -42.34 Bg Group PLC 1038.5 17.00 Prudential PLC 1518 23.00
FTSE All-Small ex Inv Co Index (204) 3087.77 0.10 3430.65 3084.71 3082.95 2757.49 2.82 2.03 17.44 76.81 5618.54 New Zealand 110.87 111.12 113.72 Euro 84.37 84.33 87.64 Health Care -5.71 Industrial Metals & -48.21 Bhp Billiton PLC 888.70 8.00 Randgold Resources LD 4051 118.00
FTSE AIM All-Share Index (824) 730.61 0.19 811.74 729.23 728.88 717.58 1.50 0.74 90.17 8.51 785.12 Norway 85.71 85.94 87.50
BP PLC 385.15 2.65 Reckitt Benckiser Group PLC 6315 9.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3860.5 52.00 RELX PLC 1186 11.00
Oil & Gas (18) 6476.86 1.11 7196.08 6405.96 6323.89 8219.31 5.81 0.20 85.61 370.03 5423.36 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 841.50 12.50 Rio Tinto PLC 2290 29.50
Oil & Gas Producers (11) 6172.14 1.17 6857.53 6100.81 6024.59 7759.97 5.82 0.16 105.35 354.65 5345.41 Bt Group PLC 491.10 3.85 Rolls-Royce Holdings PLC 541.00 -2.00
Oil Equipment Services & Distribution (7)13821.11 -0.74 15355.88 13924.66 13615.08 22651.24 5.51 1.41 12.87 649.52 10080.72 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1886 8.00 Royal Bank Of Scotland Group PLC 315.20 -0.60
Basic Materials (30) 3048.04 1.54 3386.52 3001.76 2946.63 4907.38 6.66 1.88 7.98 198.46 2988.71 Burberry Group PLC 1279 -3.00 Royal Dutch Shell PLC 1681.5 19.00
Chemicals (8) 11455.86 4.36 12727.98 10976.90 10897.08 11508.04 2.34 2.35 18.22 237.16 9848.91 Nov 19 No of US $ Day Mth YTD Total
YTD Gr Div Nov 19 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1251 14.00 Royal Dutch Shell PLC 1666 26.00
Forestry & Paper (1) 17559.77 1.56 19509.70 17289.44 17277.69 12552.77 2.05 3.37 14.43 360.52 18240.62 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3442 42.00 Royal Mail PLC 476.70 22.50
Industrial Metals & Mining (2) 860.05 -0.62 955.56 865.43 829.08 1457.74 1.34 -18.64 -4.01 11.18 750.56 FTSE Global All Cap 7747 459.00 0.8 -0.1 -2.3 626.64
-0.2 2.5 Oil & Gas 165 337.70 1.2 1.2 -15.2 514.61 -12.3 3.9 Centrica PLC 213.60 2.00 Rsa Insurance Group PLC 440.00 6.10
Mining (19) 7993.39 1.04 8881.01 7911.41 7740.90 14311.77 7.85 1.85 6.90 616.70 4103.94 FTSE Global All Cap 7118 472.41 0.9 0.0 -2.4 633.57
-0.3 2.4 Oil & Gas Producers 117 313.04 0.9 0.9 -13.6 485.69 -10.6 3.9 Coca-Cola Hbc AG 1616 17.00 Sabmiller PLC 4018 13.00
FTSE Global Large Cap 1418 406.32 0.8 0.0 -2.5 567.43
-0.2 2.6 Oil Equipment & Services 39 325.01 2.3 2.3 -21.6 450.91 -19.4 4.1 Compass Group PLC 1075 19.00 Sage Group PLC 561.50 15.00
Industrials (117) 4307.81 1.41 4786.18 4247.93 4248.76 4149.15 2.58 1.19 32.54 107.43 4273.81
Construction & Materials (13) 5100.80 3.76 5667.22 4916.03 4947.50 3906.83 2.34 -0.83 -51.63 120.59 5211.39 FTSE Global Mid Cap 1646 610.37 0.8 -0.7 -1.1 795.47
0.6 2.0 Basic Materials 263 367.33 0.3 0.3 -15.7 537.10 -13.4 3.3 Crh PLC 1875 97.00 Sainsbury (J) PLC 253.20 -0.40
Aerospace & Defense (9) 4194.14 1.24 4659.88 4142.71 4147.72 4748.86 2.73 0.96 38.27 113.27 4335.89 FTSE Global Small Cap 4683 635.93 0.9 -0.7 -2.5 804.79
-0.9 2.0 Chemicals 124 613.10 0.0 0.0 -1.7 899.00 0.4 2.4 Diageo PLC 1902.5 17.00 Schroders PLC 2955 24.00
General Industrials (6) 3532.81 1.42 3925.11 3483.34 3518.19 3106.06 3.26 1.68 18.31 112.80 3842.70 FTSE All-World 3064 268.55 0.8 -0.1 -2.3 386.80
-0.1 2.5 Forestry & Paper 16 211.39 1.3 1.3 1.5 338.33 4.2 2.9 Direct Line Insurance Group PLC 406.00 1.70 Severn Trent PLC 2214 16.00
Electronic & Electrical Equipment (11) 5183.67 1.97 5759.29 5083.61 5097.45 4736.74 2.26 2.04 21.72 110.13 4579.79 FTSE World 2549 476.31 0.8 0.2 -2.0 921.08
0.2 2.5 Industrial Metals & Mining 67 267.11 0.9 0.9 -35.2 391.39 -33.6 3.6 Dixons Carphone PLC 459.60 -0.40 Shire PLC 4718 45.00
Industrial Engineering (14) 7585.31 0.22 8427.63 7568.74 7557.93 9197.89 3.22 1.52 20.41 243.31 8880.77 FTSE Global All Cap ex UNITED KINGDOM In 7421 471.23 0.8 0.0 -2.1 634.41
0.0 2.4 Mining 56 349.46 0.7 0.7 -38.7 511.85 -35.9 6.3 Easyjet PLC 1714 20.00 Sky PLC 1103 11.00
Industrial Transportation (8) 4074.14 2.26 4526.55 3984.16 3942.94 4028.31 3.70 0.95 28.61 135.04 3399.55 FTSE Global All Cap ex USA 5735 422.91 -0.1 -2.6 -5.4 612.57
-2.9 2.9 Industrials 536 306.80 0.6 0.6 -2.5 425.50 -0.6 2.2 Experian PLC 1217 24.00 Smith & Nephew PLC 1125 16.00
Support Services (56) 6654.70 1.03 7393.67 6586.99 6573.45 6149.52 2.34 1.51 28.27 148.46 6663.18 FTSE Global All Cap ex JAPAN 6486 467.97 0.9 -0.3 -3.3 644.45
-1.1 2.5 Construction & Materials 109 425.02 0.2 0.2 -1.5 617.50 0.5 2.1 Fresnillo PLC 699.50 9.00 Smiths Group PLC 1006 16.50
FTSE Developed 2115 433.83 0.9 0.4 -1.0 596.67
1.2 2.5 Aerospace & Defense 28 515.38 0.4 0.4 3.7 708.72 5.7 2.0 G4S PLC 225.80 -6.70 Sports Direct International PLC 707.50 5.50
Consumer Goods (40) 18202.96 0.31 20224.31 18145.98 18180.90 16395.85 2.95 1.76 19.25 517.93 12819.36
FTSE Developed All Cap 5739 454.76 0.9 0.3 -1.1 618.71
1.0 2.4 General Industrials 56 219.69 0.6 0.6 1.0 327.01 3.4 2.6 Gkn PLC 301.80 5.10 Sse PLC 1475 12.00
Automobiles & Parts (1) 7092.44 1.72 7880.02 6972.59 6869.19 7679.95 2.82 1.53 23.19 199.75 6522.49
FTSE Developed Large Cap 921 401.71 0.9 0.5 -1.3 559.99
1.0 2.6 Electronic & Electrical Equipment 69 326.04 0.4 0.4 0.2 417.53 2.0 1.8 Glaxosmithkline PLC 1347 -2.00 St. James's Place PLC 968.00 3.00
Beverages (6) 15608.27 0.64 17341.50 15509.62 15514.78 14588.53 2.25 1.79 24.82 345.76 10606.24
FTSE Developed Europe Large Cap 217 337.74 -0.2 -2.6 -4.5 531.47
-1.4 3.4 Industrial Engineering 105 552.70 0.4 0.4 -10.6 754.19 -8.7 2.5 Glencore PLC 94.05 0.74 Standard Chartered PLC 593.00 5.70
Food Producers (10) 9035.07 0.80 10038.37 8963.22 8966.86 8142.94 1.79 1.40 39.94 112.52 7518.36
FTSE Developed Europe Mid Cap 302 511.75 0.0 -1.5 2.3 731.79
4.6 2.5 Industrial Transportation 96 524.66 1.3 1.3 -12.1 724.93 -10.6 2.3 Hammerson PLC 612.00 15.00 Standard Life PLC 404.70 4.20
Household Goods & Home Construction (13)13201.98 -0.34 14668.00 13246.81 13267.03 10221.34 2.16 2.60 17.81 252.82 8956.63
FTSE Dev Europe Small Cap 714 721.26 0.0 -1.1 4.7 1004.88
7.0 2.3 Support Services 73 281.29 0.6 0.6 3.2 375.30 5.1 1.9 Hargreaves Lansdown PLC 1491 5.00 Taylor Wimpey PLC 185.30 -0.40
Leisure Goods (2) 5542.61 2.56 6158.09 5404.03 5360.85 4820.36 4.32 1.19 19.41 238.83 4694.25
FTSE North America Large Cap 323 446.00 1.6 2.2 0.3 585.70
2.3 2.2 Consumer Goods 423 416.06 0.6 0.6 2.8 589.82 4.9 2.4 Hikma Pharmaceuticals PLC 2110 62.00 Tesco PLC 172.00 1.10
Personal Goods (6) 22135.00 0.56 24592.99 22012.18 22127.95 21460.35 2.94 3.02 11.26 629.27 14265.57
FTSE North America Mid Cap 400 658.09 1.5 0.1 -3.0 810.40
-1.6 1.7 Automobiles & Parts 101 380.71 0.9 0.9 -2.3 518.76 -0.2 2.5 HSBC Holdings PLC 525.10 4.30 Travis Perkins PLC 1965 14.00
Tobacco (2) 46373.11 0.21 51522.62 46277.46 46433.02 42656.35 4.30 1.16 20.06 1994.40 28260.82
FTSE North America Small Cap 1518 662.18 1.6 -0.1 -3.9 793.36
-2.5 1.7 Beverages 48 576.09 0.6 0.6 7.1 827.85 9.5 2.4 Imperial Tobacco Group PLC 3492 -78.00 Tui AG 1130 18.00
Health Care (19) 9193.29 0.30 10214.16 9165.88 9135.39 9559.24 3.80 3.53 7.45 347.26 6702.68
FTSE North America 723 298.04 1.6 1.9 -0.3 401.12
1.6 2.1 Food Producers 106 549.22 0.7 0.7 -0.5 802.36 1.5 2.2 Inmarsat PLC 1069 9.00 Unilever PLC 2820 19.00
Health Care Equipment & Services (7) 6832.92 0.44 7591.69 6802.95 6786.51 6263.88 1.66 2.14 28.12 97.63 5787.83
FTSE Developed ex North America 1392 228.46 -0.1 -1.8 -2.1 355.04
0.6 2.9 Household Goods & Home Construction 48 394.57 0.8 0.8 -0.4 557.32 1.8 2.3 Intercontinental Hotels Group PLC 2502 37.00 United Utilities Group PLC 974.50 16.50
Pharmaceuticals & Biotechnology (12)12454.73 0.29 13837.77 12419.16 12376.84 13104.63 3.99 3.58 6.99 498.46 8066.59
FTSE Japan Large Cap 177 329.07 -0.1 1.8 7.9 411.13
9.9 1.9 Leisure Goods 28 135.34 0.5 0.5 7.4 172.97 8.4 1.3 International Consolidated Airlines Group S.A. 582.50 9.50 Vodafone Group PLC 221.50 -2.50
Consumer Services (97) 4865.49 0.68 5405.78 4832.71 4840.26 4400.65 2.25 1.65 26.94 107.50 4384.55 FTSE Japan Mid Cap 303 486.55 0.0 1.5 14.4 587.17
16.2 1.5 Personal Goods 80 604.68 0.4 0.4 3.7 817.76 5.5 1.9
Food & Drug Retailers (7) 2820.69 0.35 3133.91 2810.80 2788.07 2924.63 1.90 -1.50 -35.08 53.33 3225.48 Intertek Group PLC 2657 18.00 Whitbread PLC 4515 15.00
FTSE Global wi JAPAN Small Cap 781 512.88 -0.4 0.9 9.4 638.69
11.2 1.7 Tobacco 12 1212.92 0.5 0.5 13.0 2348.91 16.8 3.9 Intu Properties PLC 326.60 4.80 Wolseley PLC 3717 60.00
General Retailers (33) 3062.94 0.38 3403.06 3051.38 3062.13 2720.42 2.26 2.26 19.61 63.84 3345.86
FTSE Japan 480 136.50 0.0 1.7 9.2 191.62
11.1 1.8 Health Care 172 454.43 1.2 1.2 4.6 631.98 6.4 1.8 Itv PLC 267.20 -0.10 Wpp PLC 1515 7.00
Media (22) 7390.29 0.53 8210.95 7351.27 7353.02 6460.92 2.77 1.62 22.29 207.70 4362.47
FTSE Asia Pacific Large Cap ex Japan 530 536.20 -0.5 -5.1 -12.9 799.83
-10.4 3.3 Health Care Equipment & Services 61 641.94 0.9 0.9 8.7 734.75 9.6 1.0 Johnson Matthey PLC 2694 237.00
Travel & Leisure (35) 8340.93 1.09 9267.15 8250.60 8285.84 7530.01 1.91 2.14 24.57 154.89 7584.60
FTSE Asia Pacific Mid Cap ex Japan 434 731.54 -0.7 -4.4 -9.2 1052.12
-7.0 2.9 Pharmaceuticals & Biotechnology 111 345.33 1.4 1.4 3.4 499.02 5.4 2.1
Telecommunications (7) 4053.19 -0.33 4503.27 4066.81 4099.16 3679.50 4.01 0.18 135.35 148.35 4231.53 FTSE Asia Pacific Small Cap ex Japan 1430 489.93 -0.5 -3.5 -8.3 695.45
-6.1 2.8 Consumer Services 390 394.77 0.9 0.9 5.5 511.90 7.1 1.7
Fixed Line Telecommunications (5) 5608.82 0.57 6231.65 5577.19 5638.78 4362.80 2.72 1.77 20.81 105.24 4821.07
Mobile Telecommunications (2) 5086.28 -0.97 5651.09 5136.15 5165.84 5085.49 4.94 -0.44 -46.02 251.48 4757.05
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
964
2008
424.94
589.49
-0.5
-0.3
-5.0
-4.8
-12.5 673.71
-10.0 3.3 Food & Drug Retailers
-14.5 839.49
-12.1 3.2 General Retailers
54 298.89
121 531.83
1.0
0.9
1.0
0.9
-0.6 403.54
11.2 673.04
1.0
12.8
1.8
1.5
UK STOCK MARKET TRADING DATA
Utilities (8) 8342.20 1.39 9268.57 8227.53 8244.96 8983.79 4.86 1.35 15.24 326.98 8800.09 FTSE Emerging Large Cap 497 559.09 -0.3 -5.0 -14.5 801.04
-12.1 3.2 Media 91 308.11 1.1 1.1 2.4 400.22 4.0 1.7 Nov 19 Nov 18 Nov 17 Nov 16 Nov 13 Yr Ago
Electricity (3) 8464.55 1.05 9404.50 8376.50 8407.67 9936.76 6.00 1.33 12.54 504.89 11260.28 FTSE Emerging Mid Cap 452 728.75 -0.3 -4.8 -15.4 1032.72
-13.2 2.9 Travel & Leisure 124 376.42 0.7 0.7 4.5 492.74 6.1 1.7 SEAQ Bargains 4366.00 4219.00 4315.00 4478.00 4478.00 4478.00
Gas Water & Multiutilities (5) 7856.07 1.48 8728.45 7741.40 7754.62 8265.78 4.57 1.36 16.12 266.93 8300.07 FTSE Emerging Small Cap 1059 613.36 -0.3 -3.4 -13.3 842.42
-10.9 3.0 Telecommunication 91 159.88 -0.2 -0.2 -4.3 280.39 -0.7 4.1 Order Book Turnover (m) 44.65 41.59 34.68 27.05 27.05 27.05
Financials (283) 4584.50 0.61 5093.59 4556.83 4560.35 4628.16 3.58 1.88 14.83 160.25 4000.73 FTSE Emerging Europe 99 301.97 1.0 -2.1 -3.1 441.95
0.6 4.2 Fixed Line Telecommuniations 44 133.44 -0.2 -0.2 -2.6 256.10 1.7 4.6 Order Book Bargains 828294.00 776261.00 774222.00 826125.00 826125.00 826125.00
Banks (9) 3774.37 0.37 4193.49 3760.34 3746.92 4348.27 4.43 1.37 16.52 170.78 2601.79 FTSE Latin America All Cap 240 658.35 0.8 -1.6 -26.9 967.43
-25.2 3.4 Mobile Telecommunications 47 169.23 -0.2 -0.2 -6.5 268.90 -3.7 3.5 Order Book Shares Traded (m) 1262.00 1206.00 1101.00 1205.00 1205.00 1205.00
Nonlife Insurance (10) 2824.53 0.33 3138.18 2815.23 2822.18 2126.43 2.67 2.06 18.14 75.75 4746.92 FTSE Middle East and Africa All Cap 219 662.54 -0.2 -8.4 2.9 Utilities
-13.9 985.85
-11.6 163 236.22 0.2 0.2 -11.6 430.95 -8.6 4.0 Total Equity Turnover (£m) 2950.62 2741.60 - 0.00 0.00 0.00
Life Insurance/Assurance (11) 7966.71 1.27 8851.38 7866.46 7914.78 7769.99 3.81 1.59 16.55 293.04 7313.53 FTSE Global wi UNITED KINGDOM All Cap In 326 340.12 0.1 -2.7 -5.3 536.27
-2.1 3.7 Electricity 112 256.79 -0.1 -0.1 -9.4 463.57 -6.5 3.8 Total Mkt Bargains 945936.00 901897.00 10.00 1.00 1.00 1.00
Index- Real Estate Investment & Services (21) 3059.71 -0.14 3399.47 3063.88 3075.41 2592.08 2.07 5.62 8.61 58.13 7856.84 FTSE Global wi USA All Cap 2012 512.05 1.6 2.1 0.6 654.69
2.4 2.0 Gas Water & Multiutilities 51 252.44 0.6 0.6 -15.2 472.21 -12.0 4.4 Total Shares Traded (m) 4304.00 3948.00 0.00 0.00 0.00 0.00
Real Estate Investment Trusts (25) 3048.81 0.95 3387.37 3019.98 3039.01 2707.62 2.73 6.36 5.76 80.32 3593.76 FTSE Europe All Cap 1392 388.26 -0.1 -2.3 3.2 Financials
-2.5 592.42
0.4 675 205.19 0.7 0.7 -4.9 318.13 -2.3 2.9 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 8192.23 0.65 9101.93 8139.24 8150.84 6966.84 2.82 2.22 15.94 203.84 8875.98 FTSE Eurobloc All Cap 629 363.60 -0.4 -1.8 2.9 Banks
-1.3 561.22
1.4 242 183.17 0.5 0.5 -8.9 302.79 -6.1 3.4 (c) Market closed.
Equity Investment Instruments (175) 7585.78 0.36 8428.14 7558.59 7563.27 7484.30 2.63 1.06 35.89 180.16 3978.25 FTSE RAFI All World 3000 3010 5563.44 0.6 -1.3 -5.5 6991.05
-3.0 3.1 Nonlife Insurance 71 215.70 0.9 0.9 0.7 299.77 2.9 2.3
Non Financials (356) 4021.47 0.75 4468.03 3991.72 3983.34 4153.01 3.68 1.40 19.39 142.13 5622.13 FTSE RAFI US 1000 1004 9054.79 1.5 1.4 -2.6 11414.92
-0.4 2.5 Life Insurance 51 206.20 0.2 0.2 -2.3 312.23 0.1 2.8
Technology (20) 1433.48 1.30 1592.66 1415.15 1409.42 1140.10 1.35 2.10 35.43 18.71 1791.27 FTSE EDHEC-Risk Efficient All-World 3064 318.23 0.7 -0.7 2.2 Financial Services
-0.4 426.60
1.5 140 231.62 1.2 1.2 0.0 307.80 1.7 1.9 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1749.07 1.09 1943.29 1730.15 1730.68 1285.35 1.87 1.65 32.43 32.33 2289.65 FTSE EDHEC-Risk Efficient Developed Europe 519 280.65 -0.1 -1.5 2.7 Technology
0.8 408.88
3.2 186 175.85 1.2 1.2 2.2 209.59 3.8 1.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (7) 1650.65 1.46 1833.95 1626.85 1614.37 1386.45 0.91 2.87 38.36 14.25 1894.69 Software & Computer Services 84 307.57 1.3 1.3 13.3 352.88 14.5 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 102 129.95 1.2 1.2 -7.2 159.20 -5.2 2.4 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 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6312.52 6346.43 6361.80 6358.15 6358.45 6351.08 6334.88 6328.60 6329.15 6366.85 6309.62 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
FTSE 250 17148.40 17141.20 17185.68 17190.68 17186.14 17150.99 17144.22 17148.71 17145.33 17197.20 17115.78 (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,
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
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4555.47 4560.14 4564.85 4566.10 4572.83 4570.19 4570.70 4567.94 4569.23 4573.00 4555.47
FTSE All-Share 3463.28 3477.96 3486.30 3484.92 3485.08 3480.59 3473.30 3470.64 3470.80 3488.77 3461.10 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 100 Day's high:11:27:15 Day's Low08:07:30 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 5898.87(24/08/2015) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:11:36:00 Day's Low08:08:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3245.99(24/08/2015)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Aberdeen Japan Investment Trust Int 14.076L 9.125 2.62 1.54 - - - 2.6 4.5 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Assura Int 29.4 23.6 35.4 16.5 3.5 2.9 0.5 0.45 Nov 4 1 1.203 11/17 260.00 AIM FARN Faron Pharmaceuticals Oy 277.50 0.00 295.00 265.00 6413.5
1p Nil 10-12-15 11.00 9.40 Lonmin PLC 9.85 -0.65 Aurum Mining Int - - 0.089L 0.172L 0.05L 0.12L - - - - - 11/17 10.00 SCGL Sealand Capital Galaxy Ltd 12.50 - 13.90 13.90 0.0
465p Nil 10-12-15 595.60 583.40 Standard Chartered PLC 593.00 5.70 Botswana Diamonds Pre - - 0.34L 0.949L 0.16L 0.57L - - - - - 11/13 240.00 SCT Softcat PLC 295.00 15.00 296.60 240.00 58049.0
Caledonia Investments Int 58.1L 64.6 25.4 23.6 14.3 13.8 Jan 7 51.1 64.389 11/10 5.00 SEN Senterra Energy PLC 4.88 0.02 5.59 4.75 131.6
Dart Group Int 1024 902.2 146.8 71.7 79.82 38.93 0.9 0.75 Feb 1 3.15 3.557 11/09 195.00 GYM Gym Group (The) PLC 203.25 0.60 216.75 195.00 26037.4
Electrocomponents Int 626.5 616.4 19.9 57.1 3.1 9.6 5 5 Jan 13 11.75 17.306 11/06 180.00 MCS McCarthy & Stone PLC 223.00 0.75 228.00 180.00 119821.0
Euromoney Institutional Investor Pre 403.412 406.559 123.285 101.475 83.42 59.49 16.4 16 Feb 11 23.4 23 11/06 100.00 RGL Regional REIT Ltd 100.00 -0.75 104.00 99.75 27421.7
Grainger Pre 244.1 319.1 50 81.1 10.4 18.1 2.11 1.89 Feb 12 2.75 2.5 10/28 185.00 HSW Hostelworld Group PLC 0.00 0.00 3.13 2.88 0.0
Investec Int 949.897 886.105 276.647 209.042 20.1 11.6 9.5 8.5 Dec 23 21 28.389 10/26 1.00 UPL Upland Resources Ltd 0.98 -0.08 1.36 0.92 208.1
Johnson Matthey Int 5755.1 4799.9 330.2 207.8 137.9 85.6 19.5 18.5 Feb 2 69 82.889 10/22 190.00 IBST Ibstock PLC 191.50 -0.50 202.85 188.24 77653.3
Poundland Group Int 561.105 528.154 5.27 9.326 1.51 2.85 1.65 1.5 Jan 29 4.65 1.5 10/21 37.00 AIM EVG Evgen Pharma PLC 27.00 0.50 45.00 25.00 1967.5
QinetiQ Group Int 370.9 365.6 48.3 44.4 7.1 5.1 1.9 1.8 Feb 12 5.5 6.556 10/13 240.00 WPG Worldpay Group PLC 290.00 4.00 293.00 240.00 580000.0
Royal Mail Int 4395 4478 116 167 11.4 12.5 7 6.7 Jan 13 21.3 20 10/12 170.00 HSTG Hastings Group Holdings PLC 171.75 3.75 179.77 155.00 112877.1

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Friday 20 November 2015 ★ FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) BakerHu 50.56 -1.13 70.45 44.11 1.36 -80.28 22046.36 Lyondell♦ 93.74 -0.55 107.32 70.06 3.19 9.96 42130.86
ANZ♦ 27.52 0.77 37.25 25.01 9.25 10.87 57527.86 Nokia 6.19 -0.11 7.87 5.65 2.27 15.24 24906.95 AstellasPh 1734 2.00 2047 1514.5 1.91 21.73 31372.03 AtlasCpcoB 209.70 -2.00 270.00 173.70 1.49 17.48 9445.58 BankAm 17.68 -0.17 18.48 14.60 1.14 13.12 184040.58 Marathon Ptl♦ 55.25 -0.44 60.38 37.62 1.96 8.65 29444.15
BHPBilltn 20.42 0.61 34.29 19.73 11.69 23.16 47229.4 SampoA 46.17 0.25 49.40 37.01 4.43 14.61 27700.02 Bridgestne 4505 28.00 5182 3753.5 2.76 12.62 29827.98 Ericsson 81.70 2.30 120.00 77.45 4.23 25.64 31168.46 Baxter 37.79 -0.28 43.44 32.18 4.48 11.21 20673.88 Marsh&M 55.27 -0.31 59.99 50.90 2.67 19.94 28831.5
CmwBkAu 79.14 1.30 96.69 70.15 7.75 14.42 97317.5 France (€) Canon 3758 47.00 4539 3402 4.41 18.09 40814.98 H&M 321.10 -1.40 368.50 295.20 3.08 24.24 61344.96 BB & T♦ 38.33 -0.02 41.90 34.24 2.69 14.06 29903.16 MasterCard 98.66 -0.50 101.76 74.61 0.66 30.06 108549.04
CSL 98.10 1.66 102.43 77.91 1.47 24.83 32853.86 Airbus Grpe 65.87 0.09 67.88 39.64 - - - CntJpRwy 22660 180.00 24800 16565 0.55 14.71 38011.16 Investor 324.90 9.30 363.40 264.50 2.89 15.13 28571.63 BectonDick 149.87 -1.67 154.98 128.87 1.52 38.29 31380.96 McDonald's 113.47 0.94 114.99 87.50 3.03 24.34 104191.54
NatAusBk♦ 29.72 0.93 39.71 27.51 9.31 12.36 56199.57 AirLiquide 114.95 0.45 123.95 93.01 - - - Denso 5820 -34.00 6548 4945 2.19 17.28 41897.97 Nordea Bk 96.95 2.75 115.50 85.15 6.24 10.81 45323.05 BerkshHat 204610 330.00 229374 190007 - 14.63 165965.1 McGraw Hill 96.15 0.40 109.13 84.64 1.35-259.38 25987.99
Telstra 5.43 0.09 6.74 5.06 8.19 15.25 47807.33 AXA 24.74 -0.17 25.40 17.56 - - - EastJpRwy 12275 190.00 12815 8553 1.05 21.98 39232.42 SEB 91.53 2.53 111.50 86.65 5.41 10.94 22925.82 Biogen 287.34 -4.64 480.18 254.00 - 18.59 64048.98 McKesson 184.70 -4.57 243.61 160.10 0.55 20.57 42501.84
Wesfarmers 38.70 1.24 46.95 36.65 8.85 17.29 31318.76 BNP Parib 56.47 0.28 61.00 43.14 - - - Fanuc 22055 300.00 28575 17930 3.63 20.32 36985.92 SvnskaHn 118.90 2.60 426.00 112.40 3.65 14.87 25689.81 BkNYMeln 43.77 -0.23 45.45 35.63 1.57 18.76 47838.53 Medtronic 76.00 -1.56 79.50 55.54 1.67 35.96 107434.71
Westpc♦ 31.58 0.81 40.07 29.10 8.18 13.26 73891.07 ChristianDior 176.15 -1.80 195.35 127.90 - - - FastRetail 48350 870.00 61970 40610 0.67 41.55 41762.64 Swedbank 194.10 -1.80 223.90 179.10 6.10 13.20 25362.72 BlackRock 358.68 -1.95 382.84 275.00 2.38 18.26 58820.84 Merck 54.00 -0.24 63.62 45.69 3.37 14.18 150837.36
Woolworths 23.65 0.52 34.71 23.05 7.45 13.38 21646.02 Cred Agr 11.52 0.17 14.49 9.82 - - - Fuji Hvy Ind 5131 31.00 5193 3669 2.20 11.31 32709.46 TeliaSonera 43.07 0.31 55.85 39.89 7.26 12.33 21527.45 Boeing♦ 148.90 0.62 158.83 115.14 2.35 18.53 99760.56 Metlife♦ 50.41 -0.67 58.23 44.49 2.90 9.67 56037.09
Belgium (€) Danone 64.45 0.70 67.74 51.50 - - - Hitachi 731.40 2.20 939.90 585.70 1.48 12.98 28787.04 Volvo 88.25 -1.60 120.50 76.35 3.55 18.07 16532.5 BrisMySq 67.02 -0.59 70.54 51.82 2.23 62.70 111808.55 Microsoft♦ 54.25 0.40 54.98 39.72 2.31 35.82 433344.29
AnBshInBv 116.35 -1.40 119.65 85.63 - - - EDF 15.07 0.05 24.89 14.65 - - - HondaMtr 4072 68.00 4499 3382.5 2.24 12.93 60063.81 Switzerland (SFr) Broadcom 52.40 -0.87 57.70 40.21 1.04 22.55 29396.4 Mnstr Bvrg 149.51 0.38 155.83 103.18 - 51.33 30309.04
KBC Grp 54.91 0.42 66.00 42.77 - - - Engie SA 16.58 0.14 20.57 13.80 - - - JapanTob 4526 76.00 4848 3101 2.33 19.00 73710.36 ABB 19.06 0.04 22.31 16.49 - 17.24 43499.14 CapOne 79.29 1.00 92.10 67.73 1.78 11.04 42185.87 MondelezInt 44.55 0.07 48.58 33.97 1.41 8.61 70797.41
Essilor Intl 120.70 -0.80 123.65 82.75 - - - KDDI■ 3031 14.00 8550 2519 2.05 45.97 66414.98 CredSuisse 23.47 0.04 28.94 18.57 3.07 10.52 37912.88 CardinalHlth 87.14 -1.46 91.91 74.76 1.69 21.61 28667.41 Monsanto 95.85 -0.28 126.00 81.22 2.03 20.29 42158.39
Brazil (R$)
Esslr Intl 120.70 -0.80 123.65 82.75 - - - Keyence 66800 -160.00 70100 50700 0.32 31.71 33073.31 Nestle 76.10 0.30 77.00 64.55 3.05 15.98 239228.23 Carnival♦ 51.23 0.94 54.59 41.38 2.04 28.63 30363.41 MorganStly 34.03 -0.22 41.04 30.15 1.48 20.73 65889.7
Ambev 19.30 0.13 20.46 15.00 8.08 25.44 81379.37
Hermes Intl 332.15 -2.65 365.55 258.55 - - - MitsbCp 2098 34.00 2837 1887.5 2.71 10.90 27164.86 Novartis 90.00 0.30 103.20 82.25 3.10 25.15 237544.37 Caterpillar♦ 69.34 -0.98 107.12 62.99 4.18 14.18 40372.09 MylanNV 50.96 -1.06 76.69 37.59 - 28.17 25059.43
Bradesco 25.95 0.62 33.23 22.84 3.58 9.55 17573.57
LOreal 167.50 -0.45 181.30 127.70 - - - MitsubEst 2636.5 10.50 2975 2321 0.59 46.38 29850.44 Richemont 77.70 -0.10 92.25 66.40 2.15 23.92 39989.55 CBS 51.43 0.12 63.95 38.51 1.18 16.45 22305.33 Netflix 120.18 -0.46 129.29 45.08 - 317.96 51361.39
Cielo 37.52 0.72 46.27 30.48 1.73 18.91 18990.27
LVMH 162.40 -1.20 176.60 123.50 - - - MitsubishiEle 1355.5 17.50 1718 1063 2.06 12.23 23700.42 Roche 272.30 -0.10 295.80 238.80 3.10 24.85 188619.99 Celgene 114.18 -1.60 140.72 92.98 - 56.68 90263.88 News Corp A 29.97 -0.33 39.27 22.81 1.01 7.73 35087.44
ItauHldFin 26.69 0.34 32.66 23.81 1.82 6.29 21817.11
Nmrcble-SFR 41.44 0.79 60.01 29.51 - - - MitsuiFud 3211 -17.00 3879 2951 0.90 25.48 25922.92 Swiss Re 96.70 -0.15 97.65 74.95 4.61 39.96 35343.71 CharlesSch♦ 33.11 -0.29 35.72 25.43 0.73 33.03 43590.09 NextEraE 100.23 0.53 112.64 93.74 3.06 14.24 46157.21
Petrobras 9.32 -0.20 16.26 7.66 - -3.69 18608.14
Orange 16.84 0.01 16.98 12.21 - - - MitUFJFin 835.30 8.30 936.80 604.00 2.23 7.34 96374.28 Swisscom 523.50 2.50 587.50 474.40 4.40 18.31 26737.31 ChevrnTx♦ 91.01 -1.20 118.91 69.58 4.75 19.57 171284.16 Nike 125.94 0.16 133.52 90.69 0.88 32.01 84976.24
Vale 14.57 -0.02 27.89 14.35 15.87 -6.45 12574.96
PernodRic 107.85 0.35 117.75 87.90 - - - Mizuho Fin 260.40 0.40 280.40 191.00 3.08 7.79 52737.07 Syngent 376.60 -10.90 435.20 280.00 2.99 21.51 34511.54 Cigna 129.84 -5.30 170.68 99.88 0.03 16.54 33450.41 NorfolkS♦ 93.52 1.03 117.64 72.10 2.53 16.74 27920.75
Canada (C$) Murata Mfg 19290 160.00 22220 12430 1.07 18.38 35384.02 Cisco 27.56 0.44 30.31 23.03 2.85 16.11 140176.5 Northrop 187.73 -0.41 193.99 136.49 1.61 17.93 34238.77
Renault 92.57 0.55 100.25 55.68 - - - UBS 20.00 0.25 22.57 13.58 3.93 11.80 75904.83
BCE 58.38 0.54 60.20 50.92 4.49 19.21 37367.75 NipponTT 4696 7.00 5066 3011 2.09 16.01 80165.06 Citigroup♦ 54.90 -0.08 60.95 46.60 0.22 12.25 163546.58 NXP 81.03 -0.88 114.00 70.35 - 27.72 20399.42
Safran 66.87 -0.70 72.45 47.75 - - - Zurich Fin 271.00 1.60 334.60 232.60 - 12.91 40186.01
BkMontrl♦ 76.71 0.71 84.39 64.01 4.17 11.81 37151.47 Nissan Mt 1309.5 26.00 1350 963.10 2.96 9.71 48205.52 CME Grp 95.88 -0.29 100.87 82.51 2.07 25.40 32429.8 Occid Pet 75.14 -0.63 85.19 63.60 3.95 -9.41 57387.11
Sanofi 82.42 -0.66 101.10 69.77 - - - Taiwan (NT$)
BkNvaS 60.85 0.18 71.17 52.60 5.52 11.55 55202.73 Nomura 774.80 4.90 909.20 609.30 3.07 10.39 24117.27 Coca-Cola 43.07 0.79 44.78 36.56 3.04 27.37 187332.1 Oracle 39.17 0.47 46.71 35.14 1.37 18.53 167045.49
Sant Gbn 40.91 0.60 44.84 31.83 - - - Chunghwa Telecom 100.00 1.20 101.00 91.20 4.86 19.54 23774.33
Brookfield 45.33 0.05 48.64 36.34 1.36 12.09 33517.64 Nppn Stl 2485.5 31.00 3505 2122.5 1.58 9.88 19233.93 Cognizant 65.42 0.16 69.80 50.17 - 25.42 39875.4 Pepsico 101.03 0.76 103.44 76.48 2.71 29.68 147185.63
Schneider 58.35 0.61 75.29 48.57 - - - HonHaiPrc 85.50 0.70 99.70 77.90 4.45 8.91 40977.48
CanadPcR 193.62 -1.32 245.05 172.01 0.72 21.58 22448.29 NTTDCMo 2423 7.50 2873.5 1731 2.99 19.55 80614.2 ColgtPlm 66.46 0.40 71.56 50.84 2.25 24.35 59609.44 Perrigo 155.06 -0.58 215.73 140.40 0.31 152.10 22701.1
SocGen 44.79 0.44 48.77 31.85 - - - TaiwanSem 140.50 3.50 155.00 112.50 3.20 11.97 111654.15
CanImp 100.38 0.48 107.32 83.10 4.16 11.24 30060.85 Panasonic 1421.5 17.00 1853.5 1177.5 1.19 97.10 28394.73 Comcast 62.62 0.06 64.99 50.01 1.57 19.43 131158.17 Pfizer♦ 32.16 -1.15 36.46 28.47 3.45 23.93 198041.75
Total 46.60 -0.06 50.30 36.92 - - -
CanNatRs 32.98 -0.17 43.10 25.01 2.77 83.90 27203.47 Seven & I 5804 37.00 5998 4117.5 1.30 29.33 41894.95 Thailand (THB) ConocPhil♦ 53.51 -0.97 74.68 41.10 5.53 -64.67 66065.69 Phillips66♦ 92.03 -0.51 94.12 57.33 2.33 10.64 49092.51
UnibailR 251.30 3.70 262.00 193.05 - - -
CanNatRy 78.40 -0.32 88.89 69.90 1.51 18.47 47021.17 ShnEtsuCh 7139 9.00 8529 5801 1.52 21.33 25119.58 PTT Explor 269.00 6.00 398.00 240.00 3.36 17.03 21414.28 Corning♦ 19.13 0.30 25.16 15.42 2.43 12.38 22630.49 PhilMorris 86.22 0.79 90.08 75.27 4.71 18.35 133580.27
Vinci 62.06 0.31 62.60 39.65 - - -
Enbridge♦ 49.67 -0.61 66.14 47.74 3.51-128.18 32331.75 Softbank 6575 -87.00 8100 5370 0.63 13.52 64283.56 United Arab Emirates (Dhs) Costco♦ 161.85 0.60 162.23 117.03 0.93 30.31 71131.08 PNCFin 94.88 -0.23 100.52 81.84 2.11 12.65 49140.28
Vivendi 20.26 0.09 24.83 19.05 - - -
GtWesLif 35.63 0.05 37.70 30.42 3.61 13.01 26665.33 Sony 3297 11.00 3970 2315 0.71 38.35 33887.26 Emirtestele 16.10 0.15 16.10 9.41 4.04 17.27 38120.12 CrownCstl 85.70 -0.17 89.44 74.45 3.86 55.36 28604.2 PPG Inds♦ 103.02 -1.21 118.95 82.93 1.36 23.86 27740.11
ImpOil 41.91 -0.77 55.76 40.55 1.13 21.10 26773.35 Germany (€)
SumitomoF 4943 45.00 5770 3902 3.25 12.50 56916.87 United Kingdom (p) CSX 28.31 0.04 37.99 24.47 2.43 13.94 27595.81 Praxair 115.07 -0.51 132.95 98.55 2.45 23.22 32777.17
Manulife 22.18 0.24 24.20 18.91 2.93 17.56 32953.7 Allianz 161.25 0.75 170.15 129.35 4.46 10.87 79118.8
Takeda Ph 6166 30.00 6657 4821 3.02 -30.59 39673.24 AscBrFd 3504 59.00 3524 2705.75 0.97 49.10 42428.63 CVS 92.61 -2.58 113.65 81.37 1.44 20.61 102548.64 Prec Cast 231.01 -0.19 245.05 186.17 0.05 24.04 31782.62
Potash 27.45 0.12 47.10 25.80 7.13 11.62 17274.16 BASF 77.32 0.97 97.22 63.00 3.65 14.45 76247.34
TokioMarine 4809 71.00 5504 3703 1.93 15.08 29664.38 AstraZen 4428.5 19.50 4931.68 3746 4.19 50.02 85604.46 Danaher 97.05 0.02 97.35 81.25 0.53 26.71 66506.94 Priceline 1293.53 15.03 1476.52 990.69 - 26.76 64396.7
RylBkC♦ 76.21 0.71 83.87 68.05 3.99 11.64 85299.25 Bayer 125.80 1.65 146.45 106.80 1.88 26.61 111692.11
Toyota 7620 21.00 8783 6650 3.06 10.06 212085.34 Aviva 504.00 8.00 578.68 428.40 3.59 13.19 31187.94 Deere 74.41 -0.11 98.23 71.85 3.16 11.65 24418.85 ProctGmbl 76.43 0.53 93.89 65.02 3.45 25.29 207933.37
Suncor En 37.01 -0.47 40.93 30.89 2.27 558.58 40324.87 BMW 98.73 1.28 123.75 72.05 3.08 10.97 63812.53
Mexico (Mex$) Barclays♦ 229.95 2.05 289.90 219.54 2.83 0.77 59034.76 Delphi♦ 83.01 0.94 90.57 66.10 1.22 17.32 23250.12 Prudntl 86.87 -0.51 92.60 73.19 2.70 11.22 39004.63
ThmReut 53.25 0.20 55.92 42.85 3.36 15.79 30826.37 Continental 221.00 2.50 234.25 154.75 1.48 17.38 47456.86
AmerMvl 14.10 -0.07 17.37 13.21 1.75 26.10 36190.95 BG 1038.5 17.00 1301.62 780.55 1.84 -20.06 54288.7 Delta♦ 48.73 0.98 52.00 34.61 0.84 13.90 38324.86 PublStor 234.49 1.76 235.33 178.42 2.67 38.94 40542.36
TntoDom 54.67 0.18 57.89 47.75 3.58 13.13 76400.77 Daimler 78.59 0.55 96.07 61.97 3.27 10.37 90271.13
FEMSA UBD 163.20 1.14 169.74 119.19 0.66 32.24 35259.3 BP♦ 385.15 2.65 499.25 252.55 6.99 -14.07 107871.23 DirectTV 93.55 1.36 95.51 82.04 - 16.82 47176.52 Qualcomm 48.60 0.60 75.72 47.52 3.74 14.95 73050.37
TrnCan 43.32 0.18 59.50 40.68 4.71 18.38 23147.35 Deut Bank 24.68 0.30 33.42 22.95 3.19 -7.70 36547.63
WalMrtMex■ 45.75 -0.71 47.00 28.26 1.16 35.50 48306.45 BrAmTob 3860.5 52.00 3906.73 3231.5 3.84 17.92 110074.88 DiscFinServ 57.42 0.39 66.73 50.20 1.83 11.73 24543.98 Raytheon 125.55 1.60 126.65 95.32 2.10 18.36 37802.85
ValeantPh 105.50 8.58 347.84 92.65 - 45.01 27129.67 Deut Tlkm 17.16 0.01 17.63 12.40 3.06 33.72 84847.66
BSkyB♦ 850.50 -12.00 954.00 782.50 3.80 10.88 23005.52 Disney 118.60 0.46 122.08 88.75 1.48 25.35 200179.95 Regen Pharm 583.03 -4.06 605.93 383.87 - 114.14 59315.65
DeutsPost 26.84 0.34 31.19 22.93 - 21.38 34902.38 Netherlands (€)
China (HK$) BT 491.10 3.85 493.00 372.18 2.32 18.51 62868.23 DominRes 68.70 0.22 80.89 66.52 3.74 22.53 40899.42 ReynoldsAm 46.37 0.46 49.56 31.35 2.97 17.30 66267.43
E.ON 9.12 0.23 15.46 7.08 1.61 -1.87 19595.37 Altice 14.04 -0.55 143.20 13.88 - - -
AgricBkCh 3.08 0.05 4.55 2.87 7.39 4.55 12215.92 Compass 1075 19.00 1223.36 963.00 2.52 20.87 27032.31 DowChem 53.32 0.16 53.80 35.11 3.18 14.23 61744.2 Salesforce 81.50 4.15 82.90 53.44 - -528.73 53790
Fresenius Med 79.18 -0.31 83.17 57.70 1.02 24.47 26447.54 ASML Hld 86.69 -0.06 104.85 70.25 - - -
Bk China 3.52 0.06 5.68 3.25 6.75 5.10 37979.57 Diageo 1902.5 17.00 2055 1592.5 2.81 20.11 73188.75 DukeEner♦ 67.85 0.65 89.97 65.65 4.78 19.52 46703.22 Schlmbrg 77.95 -0.60 99.21 66.57 2.46 29.17 98303.03
Fresenius SE 67.85 0.02 68.85 40.85 0.68 28.16 39697.5 Heineken 85.23 0.47 85.84 56.14 - - -
BkofComm 5.59 0.07 8.61 5.17 6.04 5.05 25253.36 GlaxoSmh♦ 1347 -2.00 1645 1227.5 5.94 6.67 100268.78 DuPont♦ 66.72 -0.38 76.61 47.11 2.74 18.98 58473.88 Shrwin-Will♦ 272.55 -0.06 294.35 218.27 0.95 25.86 25374.55
HenkelKgaA 89.84 0.90 99.44 75.00 1.51 20.96 25059.12 ING 13.29 -0.01 16.00 9.68 - - -
BOE Tech 1.92 -0.09 4.78 1.17 2.03 26.73 49.29 Glencore 94.05 0.74 339.00 66.67 12.17-218.72 20706.69 Eaton♦ 56.42 -0.46 73.82 49.21 3.83 12.94 26111.18 SimonProp♦ 191.70 1.46 208.14 170.99 3.03 35.50 59315.45
Linde 165.95 2.75 195.55 140.05 1.99 25.75 33092.57 Unilever♦ 41.32 0.22 42.75 30.28 - - -
Ch Coms Cons 10.12 0.13 17.00 6.85 2.39 8.98 5781.34 HSBC♦ 525.10 4.30 674.57 478.35 6.38 10.35 157271.94 eBay 28.80 0.05 29.69 22.11 - 11.52 34572.83 SouthCpr♦ 26.87 0.50 33.31 23.41 1.58 20.88 21103.06
MuenchRkv 184.50 1.65 206.50 154.20 4.41 9.47 33049.94 Norway (Kr)
Ch Evrbrght 3.74 0.02 5.65 3.22 6.22 4.82 3314.65 ImpTob 3492 -78.00 3648 2680 3.67 17.48 51204.76 Ecolab 117.53 -0.79 122.48 97.78 1.13 31.20 34707.02 Starbucks♦ 61.46 -0.35 64.00 38.70 1.05 33.40 91248.38
SAP 74.80 0.84 75.11 53.01 1.54 27.60 98660.2 DNB 113.70 0.70 143.00 100.90 3.55 7.87 21536.86
Ch Rail Cons 10.92 0.36 17.70 7.92 1.72 9.34 2925.5 LlydsBkg 73.33 -0.67 89.35 70.90 2.05 43.73 80142.11 EMC 25.01 -0.14 30.92 22.66 1.86 20.76 48490.32 StateSt 72.49 -0.39 81.26 63.97 1.78 16.80 29248.71
Siemens 95.83 1.58 106.35 77.91 3.48 13.72 90644.44 Statoil♦ 134.20 -2.60 161.70 113.90 5.46 -11.27 49763.81
Ch Rail Gp 6.78 0.14 12.30 4.98 1.44 11.15 3680.71 Natl Grid 939.50 16.60 965.00 806.40 4.56 16.37 53794.3 Emerson♦ 50.07 0.06 65.94 42.21 3.79 12.38 32903.01 Stryker 95.88 -1.13 105.34 88.94 1.45 30.83 36005.07
Volkswgn 125.30 5.30 254.50 95.00 4.02 9.48 39698.04 Telenor 154.50 0.90 186.10 143.70 2.50 37.11 26977.16
ChConstBk 5.54 0.14 7.98 5.02 6.79 4.89 171855.11 Prudential 1518 23.00 1761.5 1045.99 2.43 15.45 59694.64 EOG Res 82.32 -2.83 103.04 68.15 0.82 -11.71 45251.9 Sychrony Fin 31.46 -0.13 36.40 27.92 - 11.84 26232.16
China Vanke RMB 14.50 -0.17 16.25 9.14 3.50 9.83 22071.85 Hong Kong (HK$) Qatar (QR) EquityResTP 79.27 0.54 82.53 61.90 2.75 34.05 28875.04 Target♦ 70.76 0.98 85.81 68.15 2.88 15.94 44467.85
RBS 315.20 -0.60 414.00 300.30 - -14.13 55797.52
ChinaCitic 5.22 0.07 7.40 4.36 - 4.82 10023.73 AIA 47.30 0.85 58.20 38.85 0.92 21.75 73528.54 QatarNtBk 172.00 0.20 236.00 159.90 4.40 10.67 33052.79 Exelon♦ 28.23 0.11 38.93 27.49 4.44 12.42 25959.3 TE Connect 67.22 0.51 73.73 54.32 1.86 22.12 25967.48
ReckittB 6315 9.00 6450 4895 2.20 26.83 68397.49
ChinaLife 27.85 0.30 41.00 22.55 1.77 16.52 26739.71 BOC Hold 24.55 0.05 33.70 22.30 4.44 10.32 33491.18 ExpScripts 83.80 -1.02 94.61 68.06 - 25.76 56671.93 Telsa Mtrs 223.50 2.43 286.65 181.40 - -41.52 29267.62
Russia (RUB) RELX 1186 11.00 1199 988.50 2.19 27.48 -
ChinaMBank 19.86 0.08 26.85 14.44 4.22 6.95 11764.32 Ch OSLnd&Inv 26.15 -0.45 34.05 20.15 2.04 7.41 33270.88 ExxonMb♦ 80.37 -0.37 97.20 66.55 3.57 16.81 334575.37 TexasInstr 57.61 -0.35 59.99 43.49 2.38 20.19 58440.28
Gzprm neft 147.50 0.03 166.94 113.73 5.51 7.82 53984.37 RioTinto 2290 29.50 3280 2090.5 5.96 22.78 48382.18
ChinaMob 90.95 0.65 118.00 85.00 3.11 14.07 240282.36 ChngKng 53.05 0.65 77.55 50.10 - 11.49 26419.62 Facebook 107.27 -0.51 110.65 72.00 - 107.25 242390.64 TheTrvelers 114.97 0.29 115.14 95.21 2.04 10.12 34976.03
Lukoil 2534 8.00 3297.7 2053.6 2.68 13.47 33321.64 RollsRoyce 541.00 -2.00 1061 504.50 4.27 -39.79 15214.2
ChinaPcIns 32.20 0.40 47.10 24.80 1.89 15.49 11530.71 Citic Ltd 13.82 0.12 16.40 11.64 1.51 6.71 51873.47 Fedex 162.53 -0.28 185.19 130.01 0.52 43.00 45895.13 ThrmoFshr 137.33 -0.40 141.25 117.10 0.44 27.66 54808.09
MmcNrlskNckl 9670 30.00 12247 7962 13.83 12.04 23657.62 RylDShlA♦ 1666 26.00 2299.5 1497.5 7.54 100.70 100444.69
ChMinsheng 7.76 0.15 11.88 6.70 2.98 4.92 6942.38 Citic Secs 19.24 0.04 40.50 12.82 1.83 8.46 5656.02 FordMtr♦ 14.57 0.11 16.74 10.44 3.99 12.10 56776.98 TimeWrnr 70.97 -0.80 91.34 65.25 1.95 16.15 57881.81
Novatek 620.20 -11.00 646.30 398.50 9.41 56.77 29113.23 SABMill 4018 13.00 4090 2773 1.85 33.28 99517.05
ChMrchSecs RMB 22.48 0.36 40.00 12.99 1.89 12.72 16913.16 CK Hutchison 103.80 1.80 174.90 97.50 3.42 4.21 51693.8 Franklin 41.44 0.02 59.43 36.10 1.46 12.47 24922.72 TimeWrnrC 185.07 0.28 194.22 134.21 2.05 27.36 52411.37
Rosneft 271.50 -6.70 294.20 183.95 5.43 7.89 44485.11 Shire 4718 45.00 5870 4305 0.32 13.92 42726.13
Chna Utd Coms RMB 6.83 0.18 10.74 3.56 1.00 45.78 22677.39 CNOOC 8.33 0.20 13.78 7.41 6.63 7.41 47987.98 GenDyn 144.59 0.88 153.76 130.91 2.31 16.14 45708.97 TJX Cos♦ 68.51 0.17 76.93 61.35 1.05 21.37 46201.15
Sberbank 104.86 0.86 108.55 47.21 - 7.37 34995.68 StandCh 593.00 5.70 1166 570.00 9.08 13.19 23123.55
ChShenEgy 12.82 0.40 24.40 11.30 7.11 8.73 5621.8 HangSeng 143.80 2.60 162.10 125.00 3.79 10.59 35473.25 GenElectric 30.34 -0.18 30.90 19.37 3.06 58.26 306714.31 T-MobileUS 37.74 0.42 43.43 24.26 - 61.88 30797.25
Surgutneftegas 35.31 -0.31 39.80 21.82 1.92 1.36 19502.82 Tesco 172.00 1.10 252.52 155.40 0.67 -2.47 21416.81
ChShpbldng RMB 11.04 0.13 20.19 5.70 0.35-665.09 31054.88 HK Exc&Clr 208.00 2.80 311.40 162.00 1.86 36.64 32434.92 GenMills 57.10 -0.07 59.87 47.43 2.96 27.12 34127.96 UnionPac 86.51 -0.60 124.52 79.31 2.51 14.80 73889.98
Saudi Arabia (SR) Vodafone♦ 221.50 -2.50 258.00 201.25 5.07 -41.48 89956.37
ChStConEng RMB 6.81 0.06 12.52 3.72 2.56 8.60 31894.94 MTR 36.85 0.80 40.00 30.50 2.77 13.92 27838.7 GenMotors 36.24 -0.22 39.00 24.62 3.68 13.17 56395.85 UPS B♦ 103.69 0.01 114.40 93.64 2.79 23.58 72183.03
AlRajhiBnk 50.63 0.68 69.00 48.40 3.73 12.71 21938.49 WPP 1515 7.00 1616 1271 2.52 15.66 29946.86
ChUncHK 9.92 0.24 16.00 9.31 2.52 20.73 30651.78 SandsCh 27.05 - 47.50 22.85 7.15 15.15 28163.6 GileadSci 106.89 -1.24 123.37 85.95 0.81 9.73 154047.75 USBancorp 43.98 0.09 46.26 38.81 2.30 13.80 76928.81
SHK Props♦ 96.80 -0.30 137.60 93.25 2.41 9.06 36138.42 Natnlcombnk 50.98 0.48 72.75 48.80 - 11.45 27114.93 United States of America ($)
CNNC Intl RMB 10.46 0.13 14.38 4.07 - 29.02 6375.29 GoldmSchs 192.85 -0.81 218.77 167.49 1.31 12.55 82257.5 UtdHlthcre 111.61 -5.64 126.21 95.00 1.58 17.54 106376.43
Tencent 153.10 1.70 171.00 104.50 0.23 42.01 185721.34 SaudiBasic 86.52 2.08 110.50 70.25 6.00 10.89 69212.31 3M♦ 157.80 0.41 170.50 134.00 2.51 20.22 97159.5
CSR♦ 9.97 0.20 20.70 7.80 - 21.81 5623.07 Google 760.11 0.10 769.08 490.91 - 34.73 221439.7 UtdTech♦ 98.04 0.33 124.45 85.50 2.59 15.25 86963.53
SaudiTelec♦ 66.00 1.01 73.25 52.75 6.12 13.37 35198.12 AbbottLb 45.79 -0.02 51.74 39.00 2.07 26.95 68298.4
Daqin RMB 9.38 0.03 15.15 7.88 5.19 9.74 21843.78 India (Rs) Halliburton 38.00 -0.88 51.13 30.93 1.91 122.27 32520.91 ValeroEngy♦ 70.61 0.45 72.70 43.45 2.11 7.77 33998.96
Singapore (S$) Abbvie 60.26 -0.73 71.60 45.45 3.23 34.52 98509.85
Gree Elec Apl 0.26 -0.01 0.45 0.13 - -2.83 392.48 Bhartiartl 339.55 5.60 452.45 315.60 0.67 23.11 20503.26 HCA Hold 66.14 -4.07 95.49 43.91 - 13.70 26963.14 Verizon 45.59 0.21 51.03 38.06 4.91 18.10 185479.58
DBS 17.00 0.19 21.50 16.00 3.54 12.82 30088.25 Accenture 107.89 0.01 109.86 81.66 1.88 24.12 86983.44
GuosenSec RMB 21.09 0.49 34.94 7.00 0.96 12.61 27089.27 HDFC Bk 1068.9 20.30 1128 912.10 0.76 24.16 40700.9 Hew-Pack 13.69 0.05 18.66 11.03 4.70 5.69 24617.7 VertexPharm 130.54 -2.72 143.45 97.45 - -47.12 32075.93
JardnMt US$ 51.03 -0.10 67.88 45.02 2.76 12.21 35841.15 Ace 115.52 0.18 117.89 96.00 2.31 13.98 37449.44
HaitongSecs 14.66 0.26 27.90 10.00 2.13 8.90 6449.47 Hind Unilevr 794.60 1.10 981.00 744.50 1.85 36.16 25972.98 HiltonWwde 23.37 -0.04 31.60 20.93 0.30 30.58 23076.75 VF Cp 63.81 0.57 77.83 61.17 2.03 26.33 27202.78
JardnStr US$ 27.47 0.12 37.03 26.11 0.96 10.01 30650.48 Actavis 298.98 -2.94 317.72 201.91 - -39.48 117333.1
Hngzh HikVDT RMB 36.47 0.93 56.48 18.68 1.11 25.59 18027.68 HsngDevFin 1214.2 35.50 1402.3 1060.1 1.26 20.79 28942.64 HomeDep 126.85 0.31 127.20 92.17 1.64 25.24 162888.5 Viacom 52.01 -1.10 78.00 36.32 2.83 10.89 18056.13
OCBC 8.95 0.13 10.92 8.62 4.04 9.90 26053.16 Adobe 91.59 0.32 92.13 68.98 - 94.41 45685.03
Hunng Pwr 7.40 -0.03 11.90 7.23 6.39 6.88 3743.26 ICICI Bk 266.40 5.95 393.40 247.70 1.90 12.18 23372.67 Honywell♦ 104.46 0.40 107.41 87.00 2.00 18.12 80506.43 Visa Inc♦ 80.22 -0.24 81.01 60.00 0.56 34.61 156540.29
SingTel 3.87 0.07 4.57 3.43 4.54 15.86 43642.35 AEP♦ 56.03 0.62 65.38 52.29 3.82 15.39 27498.04
IM Baotou Stl RMB 4.09 0.04 7.50 2.92 - -51.58 10085.29 Infosys 1047.8 27.80 2336 932.65 3.60 18.62 36176.3 HumanaInc 164.83 -6.25 219.79 135.38 0.70 18.78 24431.75 Walgreen♦ 82.89 -1.69 97.30 66.46 1.65 20.82 90250.1
UOB■ 20.02 0.38 25.05 18.20 4.26 10.10 22689.18 Aetna 100.69 -6.17 134.40 84.92 0.98 15.29 35110.6
In&CmBkCh 4.85 0.10 7.10 4.30 6.59 5.11 54314.85 ITC 352.05 4.20 409.95 294.00 1.86 26.92 42697.24 IBM♦ 137.45 1.63 176.30 131.65 3.53 9.33 133341.64 WalMartSto 60.62 -0.32 90.97 56.30 3.15 12.93 194328.16
Aflac♦ 65.03 0.11 65.24 51.41 2.42 11.27 27748.68
IndstrlBk RMB 16.32 0.18 21.42 10.35 3.54 6.14 41361.41 L&T 1358.95 14.50 1893.8 1326 1.14 24.30 19115.93 South Africa (R) IllinoisTool 91.85 0.23 100.14 78.79 2.20 17.91 33385.7 Wellpoint 128.71 0.94 129.96 81.84 1.86 11.92 34744.16
AirProd 139.59 0.16 158.20 123.66 2.20 30.06 30009.4
Kweichow RMB 215.03 0.37 290.00 150.20 2.06 16.57 42312.07 OilNatGas 233.00 2.30 394.60 217.70 4.33 9.98 30112.25 Firstrand 50.04 2.04 58.47 46.00 4.27 11.25 20013.48 Illumina 173.93 -2.50 242.37 130.00 - 50.29 25463.35 WellsFargo♦ 55.66 -0.01 58.77 47.75 2.63 13.33 285722.78
Alexion 174.47 -2.18 208.88 142.02 - 156.50 39312.33
Midea 1.98 -0.04 2.68 1.65 4.91 12.81 54.94 RelianceIn 934.75 22.75 1067.85 796.45 1.09 11.01 45732.54 MTN Grp 143.80 5.80 250.00 132.01 9.73 7.68 18921.38 Intcntl Exch 262.21 -1.39 266.74 202.24 0.83 24.56 28775.77 Williams Cos 37.24 -0.86 61.38 33.48 6.45 82.36 27921.24
Allstate 63.23 -0.27 72.87 54.12 1.88 10.91 24489.37
New Ch Life Ins 34.05 0.30 56.55 27.05 0.76 9.31 4543.31 SBI NewA 243.90 2.90 336.00 220.15 1.46 9.90 28600.32 Naspers N 2149.18 -24.82 2194.9 1283 0.24 52.07 64305.47 Intel♦ 33.67 0.51 37.90 24.87 2.83 14.28 158888.73 Yahoo 32.99 0.01 52.26 27.20 - 127.92 31154.28
Altria 57.77 0.71 61.74 47.31 3.71 21.53 113258.84
PetroChina 5.51 0.10 11.04 5.10 3.57 19.00 15000.26 SunPhrmInds 742.50 -11.25 1200.8 724.05 - 61.45 26990.61 South Korea (KRW) Intuit 96.15 -0.47 109.21 79.63 1.02 67.65 26663.03 Yum!Brnds 71.54 0.42 95.90 66.35 2.31 33.87 30851.03
Amazon 666.01 2.47 675.96 285.25 - 951.68 312197.84
PingAnIns 44.25 0.30 62.90 29.00 1.91 11.53 42522.46 Tata Cons 2362.55 11.10 2812.1 2345 1.70 21.88 70320.77 HyundMobis 252000 1500 271500 185500 1.21 12.48 21115.26 John&John 102.08 -0.59 108.99 81.79 2.87 19.40 282449.61 Venezuela ()
AmerAir 42.69 0.94 56.20 34.10 0.95 6.07 26905.45
PngAnBnk RMB 12.50 0.08 17.50 8.75 1.41 7.84 23112.58 Indonesia (Rp) KoreaElePwr 50600 -200.00 54000 38750 1.00 7.05 27960.73 JohnsonCn 45.48 -0.03 54.52 38.48 2.31 20.66 29747.08 Bco de Vnzla 90.00 - 143.95 27.00 - - 24314.24
AmerExpr 72.15 0.00 94.89 70.21 1.54 12.72 71016.39
Pwr Cons Corp RMB 9.19 0.13 20.00 3.92 1.10 17.83 4750.48 Bk Cent Asia♦ 12950 -125.00 15600 11000 1.09 19.04 23174.23 SK Hynix 31200 650.00 51700 30050 0.95 4.97 19551.25 JPMrgnCh 67.34 -0.11 70.61 50.07 2.52 11.36 247887.28 Bco Provncl 3051 - 4400 840.00 1.14 41.17 24369.01
AmerIntGrp 61.81 -0.15 64.93 48.68 1.07 17.75 76459.74
SaicMtr RMB 19.89 0.08 29.18 14.00 6.63 7.50 34351.26 SmsungEl 1289000 8000 1510000 1033000 1.61 9.75 143476.66 Kimb-Clark 121.81 0.87 122.73 103.04 2.88 72.63 44216.35 Mrcntl Srvcs 4800 - 5900 930.00 0.17 35.36 21120.48
Israel (ILS) AmerTower 100.04 0.38 105.20 86.83 1.72 73.96 42373.96
ShenwanHong 0.19 0.01 0.41 0.17 - -2.53 61.53 Spain (€) KinderM 23.58 -0.72 44.71 22.57 7.96 43.53 52619.12
TevaPha♦ 232.70 0.80 275.90 213.20 2.21 28.79 57337.39 Amgen♦ 158.95 -1.97 181.81 130.09 1.89 18.81 119900.41
ShgPdgBk RMB 17.90 0.51 19.19 10.37 4.29 6.67 52302.09 Kraft♦ 88.19 -0.11 91.32 53.33 1.93 125.72 52233.16 Closing prices and highs & lows are in traded currency (with variations for that
Italy (€) BBVA 7.81 0.13 9.77 7.21 2.15 18.91 52864.06 Anadarko 59.31 -2.43 95.94 57.86 1.84 -5.11 30137.95
Sinopec Corp 5.06 0.11 7.79 4.46 4.91 23.31 16657.47 Kroger♦ 37.20 -0.35 39.43 27.32 0.95 19.36 36206.89 country indicated by stock), market capitalisation is in USD. Highs & lows are
Enel 4.10 0.02 4.50 3.36 3.44 55.79 41413.52 BcoSantdr 5.21 0.10 7.42 4.55 10.00 9.54 80021.96 Aon Cp 93.52 -1.50 107.08 86.38 1.19 21.16 25615.33
Sinopec Oil RMB 9.48 0.12 14.23 4.10 - -269.69 668.23 L Brands♦ 92.07 -0.16 101.11 75.11 1.79 24.38 26735.17 based on intraday trading over a rolling 52 week period.
ENI 14.93 0.08 17.66 12.98 6.75 -18.66 58254.65 CaixaBnk 3.55 0.09 4.62 3.32 2.36 28.54 21991.83 Apple 118.79 1.50 134.54 92.00 1.68 12.76 662293.57
Denmark (kr) Iberdrola 6.55 0.04 6.58 5.31 2.49 15.99 44536.35 LasVegasSd 46.03 0.04 65.35 36.53 5.37 16.39 36706.68 ♦ ex-dividend
Generali 17.69 -0.10 19.21 15.16 3.56 13.63 29569.55 ArcherDan♦ 36.96 -0.45 53.91 36.96 2.95 12.64 22055.51
DanskeBk 189.40 1.90 218.00 155.50 3.05 26.67 27493.44 Inditex 32.72 0.07 34.60 21.56 1.24 36.88 109487.7 LibertyGbl 42.47 -0.78 58.66 42.10 - -27.14 10731.97 ■ ex-capital redistribution
IntSPaolo 3.15 0.03 3.65 2.22 2.24 18.97 53692.3 AT&T 33.54 0.00 36.45 30.97 5.66 35.03 206359.61
MollerMrsk 10160 290.00 16450 9560 2.89 7.70 15562.32 Repsol 12.26 0.14 18.75 9.90 8.19 34.20 18087.69 Lilly (E)♦ 82.86 -0.79 92.85 66.56 2.43 37.13 91815.22 # price at time of suspension
Luxottica 62.70 - 67.80 39.90 1.21 36.27 32545.03 AutomData 86.45 -0.05 90.67 64.29 2.29 28.50 40222.89
NovoB 378.40 7.70 415.00 256.00 1.39 28.20 112325.92 Telefonica♦ 11.80 0.02 14.31 10.38 3.56 18.92 61626.83 Lockheed 223.75 0.53 225.47 181.91 2.71 19.67 68757.37
Unicred 5.53 0.01 6.61 4.82 2.19 14.57 35396.88 Avago Tech 123.12 -2.80 150.50 88.02 1.15 33.30 33980.97
Lowes 73.91 0.43 76.25 60.84 1.29 25.48 68383.94

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
MylanNV 50.96 52.02 -1.06 -2.04 7.76 18.0 16.58 DirectTV 93.55 92.19 1.36 1.48 - - 0.42 Nov 19 date Coupon S* M* F* price yield yield yield US Nov 19 date Coupon S* M* F* price yield yield yield US
Syngent 387.50 387.50 0.00 0.00 41.60 12.0 22.99 Altice 14.04 14.58 -0.55 -3.74 -1.73 -10.9 -28.83 High Yield US$ US$
Illumina 173.93 176.43 -2.50 -1.42 18.54 11.9 17.93 Hunng Pwr 7.40 7.43 -0.03 -0.40 -0.77 -9.4 -19.48 Windstream Services, LLC 11/17 7.88 B+ B2 BB 105.20 5.09 0.00 0.18 4.27 Burlington Resources, Inc. 02/26 6.88 A A2 A 117.81 4.72 0.00 0.56 2.46
Sberbank 104.86 104.00 0.86 0.83 10.86 11.6 18.46 Qualcomm 48.60 48.00 0.60 1.25 -3.98 -7.6 -17.81 High Yield Euro Wachovia Corporation 08/26 6.82 A A3 A+ 125.49 4.59 0.00 0.26 2.32
VertexPharm 130.54 133.26 -2.72 -2.04 13.24 11.3 12.75 GuosenSec 21.09 20.60 0.49 2.38 -1.66 -7.3 26.14 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Cummins Inc. 02/27 6.75 A+ A2 A 118.41 4.68 0.00 0.62 -
Netflix 120.18 120.63 -0.46 -0.38 11.26 10.3 18.34 LibertyGbl 42.47 43.25 -0.78 -1.80 -3.28 -7.2 -7.27 Korea Electric Power Corporation 08/27 6.75 AA- Aa3 AA- 98.59 7.05 0.00 0.10 -
Gzprm neft 147.50 147.47 0.03 0.02 12.50 9.3 4.61 HiltonWwde 23.37 23.41 -0.04 -0.17 -1.75 -7.0 -3.33 Emerging US$ FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa3 A- 118.30 4.92 0.00 0.27 -
Repsol 12.26 12.12 0.14 1.16 1.03 9.1 0.78 Sinopec Oil 9.48 9.36 0.12 1.28 -0.60 -6.0 -16.55 Peru 05/16 8.38 BBB+ A3 BBB+ 121.00 1.23 0.00 0.00 0.41 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 108.76 5.09 0.00 0.18 -
AstraZen 4428.50 4409.00 19.50 0.44 353.50 8.7 6.88 ChShpbldng 11.04 10.91 0.13 1.19 -0.67 -5.7 -4.17 Mexico 09/16 11.40 BBB+ A3 BBB+ 108.16 1.33 0.00 0.00 0.51
Brazil 01/18 8.00 BB+ Baa3 BBB- 105.43 5.28 0.00 0.00 4.46 Euro
CanadPcR 194.94 194.94 0.00 0.00 12.32 6.7 1.94 Sony 3297.00 3286.00 11.00 0.33 -200.00 -5.7 1.51 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 96.15 3.03 0.00 -0.27 -
BG 1038.50 1021.50 17.00 1.66 65.40 6.7 -3.17 Target 70.76 69.78 0.98 1.40 -4.17 -5.6 -5.25 Russia 07/18 11.00 BB+ Ba1 BBB- 119.59 3.29 0.00 -0.04 2.48
Peru 03/19 7.13 BBB+ A3 BBB+ 114.98 2.46 0.00 0.21 0.78 TeliaSonera 09/27 3.00 A- A3 A- 109.62 2.07 -0.01 -0.12 -
CanNatRs 33.15 33.15 0.00 0.00 2.05 6.6 8.88 Infosys 1047.80 1020.00 27.80 2.73 -59.80 -5.4 -4.52 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 111.58 2.12 0.00 -0.09 -
Yum!Brnds 71.54 71.12 0.42 0.59 4.42 6.6 -0.22 AirLiquide 114.95 114.50 0.45 0.39 -6.25 -5.2 4.07 Brazil 01/21 7.88 BB+ Baa3 BBB- 98.01 5.39 0.00 -0.17 3.71
Turkey 03/21 5.63 - Baa3 BBB- 107.36 4.12 0.00 0.02 2.44 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 109.44 2.06 0.00 -0.17 -
WalMartSto 60.62 60.93 -0.32 -0.52 3.67 6.4 3.02 CNNC Intl 10.46 10.33 0.13 1.26 -0.54 -4.9 -4.04
Poland 04/21 5.13 A- A2 A- 111.71 2.80 0.00 0.28 1.12 Yen
Raytheon 125.55 123.95 1.60 1.29 7.34 6.2 11.26 ChMrchSecs 22.48 22.12 0.36 1.63 -1.12 -4.7 24.34
Colombia 07/21 4.38 BBB Baa2 BBB 102.07 4.00 0.00 0.17 2.32 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Williams Cos 37.24 38.10 -0.86 -2.26 2.14 6.1 -11.14 SumitomoF 4943.00 4898.00 45.00 0.92 -245.00 -4.7 5.97
Emerson 50.07 50.01 0.06 0.12 2.82 6.0 10.16 JardnStr US$ 27.47 27.35 0.12 0.44 -1.33 -4.6 -8.92 Turkey 04/26 4.25 - Baa3 BBB- 95.98 4.80 0.00 0.07 2.54 £ Sterling
DowChem 53.32 53.16 0.16 0.29 2.89 5.7 12.53 Hermes Intl 332.15 334.80 -2.65 -0.79 -15.15 -4.4 -0.66 Emerging Euro Southern Water Services (Fin) Limited 03/26 6.64 A- Baa1 A- 128.49 3.34 -0.03 0.10 1.07
Petrobras 9.52 9.52 0.00 0.00 0.50 5.5 -3.62 Tata Cons 2362.55 2351.45 11.10 0.47 -106.25 -4.3 -4.50 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 123.28 4.06 0.01 0.18 1.80
Regen Pharm 583.03 587.09 -4.06 -0.69 30.50 5.5 11.33 PetroChina 5.51 5.41 0.10 1.85 -0.24 -4.2 -15.23 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.68 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ - BBB+ 109.83 2.99 0.00 -0.19 1.31 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 09/25 5.75 BB+ - BBB- 115.17 3.92 0.00 -0.16 1.66
Data provided by SIX Financial Information & Tullett Prebon Information. 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
Nov 19 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Nov 19 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.25 16-12-2008 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 17.02 0.17 16.85 53.29 10.88 Nov 19 Price £ Yield Day Week Month Year High Low £m
US Prime 3.25 16-12-2008 3.25 3.25 3.25 Markit IBoxx VXD 16.24 -0.12 16.36 56.32 7.04 Tr 2pc '16 100.26 0.48 9.09 2.13 2.13 -7.69 101.78 100.26 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 171.41 -0.14 -1.89 -3.86 -2.64 -4.67 VXN 17.80 0.04 17.76 46.72 11.15 Tr 1.75pc '17 101.48 0.48 -4.00 -12.73 6.67 -31.43 102.68 101.38 0.29
Euro Repo 0.05 10-09-2014 0.15 0.05 0.25 Corporates( £) 295.10 0.35 0.79 0.54 0.35 3.14 VDAX 20.56 -0.44 21.00 29.94 - Tr 5pc '18 110.01 0.60 -4.76 -13.04 11.11 -42.31 113.54 109.82 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.58 0.09 -0.52 0.04 -0.52 0.04 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.81 0.86 -3.37 -10.42 8.86 -33.33 115.07 111.42 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 212.39 0.08 0.38 -0.15 0.96 0.47 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.25 1.11 -2.63 -8.26 8.82 -26.00 119.04 114.67 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 226.59 0.19 -0.01 2.22 0.52 4.43 Tr 1.5pc '21 100.65 1.37 -2.14 -6.80 6.20 -16.97 142.92 99.91 0.08
Gilts( £) 286.92 0.36 -0.13 0.45 -0.85 4.49 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 115.49 1.42 -2.74 -7.79 5.97 -20.22 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 240.80 -0.09 -1.95 -4.01 -2.54 -3.65 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 127.59 1.77 -2.21 -6.35 4.73 -16.51 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 294.80 0.31 0.49 0.44 -0.03 2.99 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 123.72 2.02 -1.94 -5.16 3.59 -14.41 131.90 119.79 0.31
Nov 19 (Libor: Nov 18) night Day Week Month month month month year Overall ($) 225.35 0.08 -0.60 0.53 -0.60 0.53 Australia 10/18 3.25 103.11 2.14 0.01 0.00 0.30 -0.54 Tr 4.25pc '32 125.94 2.35 -1.26 -3.29 2.17 -10.98 136.85 121.93 0.35
US$ Libor 0.13100 0.000 0.000 0.004 0.20675 0.36960 0.60600 0.93585 Overall( £) 286.61 0.35 0.06 0.45 -0.60 4.02 04/26 4.25 111.23 2.99 0.01 -0.02 0.29 -0.42 Tr 4.25pc '36 127.45 2.51 -1.18 -3.46 1.21 -9.71 140.37 123.52 0.28
Euro Libor -0.18214 0.002 -0.001 0.001 -0.15071 -0.09786 -0.02571 0.07000 Overall(€) 221.91 0.14 0.11 1.56 0.58 3.16 Austria 10/18 1.15 103.64 0.05 0.00 0.00 0.00 0.00 Tr 4.5pc '42 137.20 2.58 -1.15 -3.01 0.39 -9.79 153.16 132.17 0.26
£ Libor 0.48188 0.000 -0.001 -0.002 0.50913 0.57363 0.73063 1.03400 Treasuries ($) 216.65 0.08 -0.69 0.74 -0.69 0.74 10/25 1.20 104.15 0.76 -0.01 -0.12 0.00 0.00 Tr 3.75pc '52 129.31 2.52 -1.18 -3.08 -0.79 -13.10 145.21 120.25 0.22
Swiss Fr Libor -0.003 -0.79700 -0.80100 -0.77700 -0.69500 FTSE Belgium 06/18 0.75 101.92 -0.01 0.00 0.00 0.00 0.00 Tr 4pc '60 140.56 2.48 -1.20 -2.75 -1.59 -13.89 159.23 129.15 0.21
Yen Libor 0.000 0.04143 0.07357 0.11929 0.22257 Sterling Corporate (£) 110.59 0.51 - - 0.09 -1.13 06/25 0.80 100.07 0.79 -0.02 -0.10 -0.01 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.002 -0.14600 -0.09200 -0.01500 0.07600 Euro Corporate (€) 106.54 0.14 - - 0.58 -2.41 Canada 11/17 0.25 99.26 0.64 0.00 0.00 0.00 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.51000 0.60000 0.78500 Euro Emerging Mkts (€) 979.48 13.08 - - 7.55 3.22 06/26 1.50 97.30 1.78 0.00 0.00 0.00 0.00
US$ CDs
Euro CDs
0.030
0.000
0.20000
-0.17500
0.34000
-0.12500
0.55000
-0.05500
Eurozone Govt Bond 114.58 0.28 - - 0.52 2.04 Denmark 11/18 0.25 101.63 -0.29 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 109.53 0.75 -0.02 -0.13 -0.04 -0.31
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 99.46 1.22 0.00 -0.02 0.28 0.00
Fixed Coupon Nov 19 chg % Return 1 month 1 year Yield
Nov 19 term notice month month month year Markit iTraxx 09/25 0.88 101.15 0.75 -0.01 -0.11 -0.01 0.00
1 Up to 5 Years 98.51 0.08 2366.00 -0.13 1.69 0.96
Euro -0.25 -0.15 -0.25 -0.15 -0.25 -0.10 -0.20 -0.05 -0.13 0.02 -0.01 0.14 Crossover 5Y 295.32 0.87 -10.59 -29.82 389.82 283.05 France 11/16 0.25 100.55 -0.29 0.00 0.00 0.00 0.00
2 5 - 10 Years 179.49 0.26 3236.84 -0.38 3.75 1.62
Sterling 0.40 0.55 0.40 0.55 0.46 0.56 0.55 0.65 0.71 0.86 1.01 1.16 Europe 5Y 70.97 0.88 -2.30 -7.22 95.40 68.47 11/20 0.25 101.11 0.03 0.00 -0.05 -0.06 0.00
3 10 - 15 Years 207.55 0.41 3794.92 -0.59 5.37 2.02
Swiss Franc - - - - - - - - - - - - Japan 5Y 72.15 -1.01 2.62 2.29 83.13 65.01 11/25 1.00 101.78 0.81 -0.01 -0.11 -0.03 0.00
4 5 - 15 Years 185.95 0.29 3372.08 -0.42 4.21 1.73
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 70.14 0.92 -3.11 -4.59 99.56 66.41 05/45 3.25 132.67 1.81 -0.03 -0.13 0.04 -0.47
5 Over 15 Years 296.62 0.51 4269.30 0.12 8.41 2.51
US Dollar 0.12 0.22 0.12 0.22 0.15 0.25 0.25 0.35 0.50 0.60 0.80 0.90 Germany 04/18 0.25 101.47 -0.36 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 172.18 0.31 3210.35 -0.10 4.83 2.24
Japanese Yen -0.03 0.07 -0.02 0.08 -0.05 0.15 -0.20 0.10 -0.20 0.10 -0.10 0.20 10/20 0.25 101.88 -0.13 0.00 0.00 0.00 0.00
Emerging Markets 5Y 315.01 -7.70 -3.32 -22.55 345.86 299.17 08/25 1.00 104.76 0.50 -0.01 -0.12 0.00 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 447.87 -9.20 3.22 1.76 509.34 416.39 08/46 2.50 129.57 1.32 -0.02 -0.14 0.06 -0.44
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Nov 19 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 81.86 -1.62 0.78 -0.61 94.63 75.52 Greece 07/17 3.38 96.01 5.98 -0.10 -0.57 -1.56 -1.11
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 228.00 100.00 1 Up to 5 Years 308.84 0.04 -0.44 -2.53 2359.55 -0.30 -0.94
02/26 3.00 75.38 7.03 0.02 -0.19 -0.58 -1.82 2 Over 5 years 565.55 0.26 0.25 5.29 4174.26 0.41 6.07
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.89 -0.21 0.00 0.00 0.00 0.00 3 5-15 years 428.20 0.25 -0.65 -0.80 3253.97 -0.41 0.33
03/25 5.40 138.56 1.03 -0.02 -0.11 -0.04 -0.71 4 Over 15 years 695.38 0.27 0.62 8.28 5037.77 0.74 8.93
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.42 0.15 0.01 -0.01 -0.04 0.00 5 All stocks 524.34 0.23 0.14 4.56 3919.84 0.30 5.46
11/20 0.65 100.56 0.54 0.00 -0.03 0.00 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 104.58 1.51 -0.02 -0.10 -0.07 0.00 Yield Indices Nov 19 Nov 18 Yr ago Nov 19 Nov 18 Yr ago
Crude Oil† Dec 41.56 -0.41 Corn♦ Dec 363.50 1.50 Nov 18 Nov 18 Prev return stock Market stocks
09/46 3.25 113.15 2.64 -0.02 -0.13 0.04 0.00 5 Yrs 1.21 1.25 1.43 20 Yrs 2.54 2.57 2.77
Brent Crude Oil‡ 44.07 -0.18 Wheat♦ Dec 484.75 1.00 Can 4.25%' 21 126.98 -0.194 -0.213 -0.47 5.18 69005.97 7
Japan 10/17 0.10 100.23 -0.02 0.00 0.00 0.00 0.00 10 Yrs 1.93 1.97 2.17 45 Yrs 2.50 2.53 2.90
RBOB Gasoline† Nov 1.28 0.00 Soybeans♦ Jan 855.50 -2.50 Fr 2.25%' 20 115.40 -0.952 -0.955 0.13 20.31 214469.02 14
12/20 0.05 99.95 0.06 0.00 -0.01 0.00 0.00 15 Yrs 2.35 2.38 2.57
Heating Oil† Nov 1.38 0.01 Soybeans Meal♦ Dec 285.60 0.10 Swe 0.25%' 22 108.54 -0.897 -0.882 -0.83 31.97 226610.07 7
09/25 0.40 100.98 0.30 0.00 -0.01 -0.01 0.00
Natural Gas† Nov 2.33 0.00 Cocoa (ICE Liffe)X Dec 2297.00 6.00 UK 2.5%' 16 - - - - - - -
09/45 1.40 100.27 1.39 -0.01 0.00 0.04 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Dec 3353.00 13.00 UK 2.5%' 24 337.31 -0.750 -0.729 -0.01 6.82 477123.32 25
Netherlands 04/17 0.50 101.19 -0.35 0.00 0.00 0.00 0.00 Real yield Nov 19 Dur yrs Previous Yr ago Nov 19 Dur yrs Previous Yr ago
Uranium Nov 36.75 0.00 Coffee(Robusta)X Nov 1530.00 56.00 UK 2%' 35 229.24 -0.722 -0.706 -0.48 9.08 477123.32 25
07/25 0.25 96.14 0.67 -0.01 -0.11 -0.01 0.00 Up to 5 yrs -0.80 2.47 -0.78 -1.05 -1.62 2.50 -1.61 -1.96
Carbon Emissions - - Coffee (Arabica)♥ Dec 114.15 1.10 US 0.625%' 21 101.03 0.440 0.444 -0.56 35.84 1091062.05 36
Diesel Dec - - White SugarX 401.40 10.60 New Zealand - - - - - - - Over 5 yrs -0.76 23.46 -0.75 -0.48 -0.80 23.56 -0.78 -0.53
US 3.625%' 28 131.91 0.900 0.444 -0.82 16.78 1091062.05 36
Unleaded (95R) - - Sugar 11♥ 14.64 0.14 12/17 6.00 106.72 2.63 0.02 -0.03 0.10 -1.10 5-15 yrs -0.69 9.70 -0.66 -0.67 -0.82 9.71 -0.79 -0.81
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/17 4.25 105.34 0.63 0.02 -0.02 -0.01 -0.67 Over 15 yrs -0.77 29.17 -0.76 -0.46 -0.79 29.23 -0.78 -0.49
Base Metals (♠ LME 3 Months) Cotton♥ Dec 62.11 0.56 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 101.69 1.55 -0.01 -0.07 0.02 0.00 All stocks -0.76 20.35 -0.75 -0.49 -0.81 20.52 -0.80 -0.55
Aluminium 1461.00 -10.50 Orange Juice♥ Jan 150.65 -0.50 amount.
Aluminium Alloy 1600.00 30.00 Palm Oil♣ Dec 527.00 3.25 Portugal 06/18 4.45 110.34 0.38 0.02 -0.13 -0.03 -1.03 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4614.00 9.00 Live Cattle♣ Dec 130.05 0.08 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 104.14 2.40 -0.06 -0.37 0.08 0.00
Lead 1573.50 -13.50 Spain 04/18 0.25 100.23 0.15 -0.02 -0.05 -0.04 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Jan 163.78 3.00
Nickel 8915.00 -85.00 Lean Hogs♣ Dec 54.28 0.08 Spread Spread Spread Spread 10/25 2.15 104.08 1.70 -0.03 -0.14 0.07 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 14465.00 -110.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.40 1.16 0.00 -0.02 0.28 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1500.50 -18.00 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 114.67 0.88 0.04 -0.04 0.19 -0.27 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Nov 18 Month Year Australia 2.99 2.49 0.72 Italy 1.51 1.01 -0.75 Switzerland 01/18 3.00 108.90 -1.11 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1067.75 -11.45 S&P GSCI Spt 337.90 -8.48 -34.69 Austria 0.76 0.27 -1.50 Japan 0.30 -0.20 -1.97 05/26 1.25 115.85 -0.24 0.00 0.00 0.00 0.00
Silver (US cents) 1421.00 4.00 DJ UBS Spot 82.03 -8.62 -29.75 Belgium 0.79 0.30 -1.47 Netherlands 0.67 0.17 -1.60 United Kingdom 07/18 1.25 101.09 0.84 0.00 -0.06 0.13 -0.38 Data provided by Morningstar | www.morningstar.co.uk
Platinum 844.00 -17.00 R/J CRB TR 185.12 -7.42 -30.52 Canada 1.78 1.29 -0.48 Norway 1.55 1.06 -0.71 01/21 1.50 100.51 1.40 0.00 -0.08 0.13 0.00
Palladium 544.00 -3.00 Rogers RICIX TR 2136.38 - - Denmark 0.75 0.26 -1.51 Portugal 2.40 1.90 0.14 09/25 2.00 100.76 1.91 -0.01 -0.10 0.11 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 242.93 -7.41 -34.73 Finland 0.75 0.25 -1.51 Spain 1.70 1.20 -0.56 01/45 3.50 117.61 2.63 0.00 -0.06 0.07 -0.29
Iron Ore (Platts) 45.30 -1.20 UBS Bberg CMCI TR 12.61 -8.53 -31.57 France 0.81 0.32 -1.45 Switzerland -0.24 -0.73 -2.50 United States 07/17 0.63 99.68 0.82 0.00 0.01 0.24 0.00
Iron Ore (The Steel Index) 45.10 -0.70 LEBA EUA Carbon 7.96 0.00 38.68 Germany 0.50 0.00 -1.77 United Kingdom 1.91 1.42 -0.35 10/20 1.38 98.55 1.68 0.00 -0.04 0.00 0.00
GlobalCOAL RB Index 58.50 1.50 LEBA CER Carbon 0.67 15.52 737.50 Greece 7.03 6.54 4.77 United States 2.26 1.77 0.00 11/25 2.25 99.88 2.26 -0.01 -0.05 0.00 0.00
Baltic Dry Index 504.00 -15.00 LEBA UK Power 1495.00 -28.09 -48.91 Ireland 1.03 0.53 -1.23 11/45 3.00 99.53 3.02 -0.02 0.00 0.00 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
20 ★ FINANCIAL TIMES Friday 20 November 2015

MANAGED FUNDS SERVICE

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

Atlantis China Healthcare Fund $ 2.04 - 0.02 0.00 Invesco Global Structured Equity A $ 47.40 - 0.49 0.73 Sterling Bond £ 1.4580xd - 0.0050 3.57

ACPI Global UCITS Funds Plc (IRL) Cheyne Capital Management (UK) LLP Ennismore Smaller Cos Plc (IRL) Generali International Limited M & G (Guernsey) Ltd (GSY)
Atlantis Japan Opportunities Fund $ 2.47 - 0.03 0.00 Invesco Global Total Ret.(EUR) Bond Fund A € 13.24 - 0.00 0.00 UK £ 6.4780xd - 0.1300 1.62
www.acpishard.com Other International Funds 5 Kensington Church St, London W8 4LD 020 7368 4220 PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 Regulated
Regulated FCA Recognised International Insurances Lloyds Gilt Fund Limited The M&G Offshore Fund Range
Atlantis Asian Fund $ 6.18 - 0.02 0.00 Cheyne European Event Driven Fund € 137.91 - -3.22 0.00 Invesco Gold & Precious Metals A $ 3.51 - 0.11 0.00
ACPI Emerging Mkts FI UCITS Fund USD A $ 109.24 - 0.12 0.00 Ennismore European Smlr Cos NAV £ 97.85 - 0.12 0.00 Global Multi-Strategy Managed $ 4.79 5.16 -0.05 0.00 Lloyds Gilt Fund Quarterly Share £ 1.2620 - 0.0030 1.90 Corporate Bond 1314.04 1354.69 1.66 3.17
Cheyne European High Yield Fund € 128.43 - -3.51 0.00 Invesco Greater China Equity A $ 45.27 - 1.18 0.00
ACPI Global Credit UCITS Funds USD A $ 13.96 - 0.00 0.00 Ennismore European Smlr Cos NAV € 139.78 - 0.16 0.00 UK Multi-Strategy Managed £ 4.85 5.22 -0.04 0.00 Monthly Share £ 1.2140xd - 0.0030 1.90 Global Basics 2260.85 2330.77 29.76 0.31

AXIOM
Cheyne Multi Strategy Liquid Fund $ 124.23 - 2.46 - Invesco India Equity A $ 50.96 - 0.97 0.00
ACPI Global Fixed Income UCITS Fund USD A $ 151.68 - 0.00 0.00 EU Multi-Strategy Managed € 3.06 3.30 0.00 0.00 Lloyds Money Fund Limited Global Leaders 3330.24 3469.00 37.64 1.13
Cheyne Real Estate Credit Holdings Fund £ 160.92 - 7.23 0.00 Invesco Japanese Equity Adv Fd A ¥ 3943.00 - 42.00 0.00
ALTERNATIVE INVESTMENTS Ennismore European Smlr Cos Hedge Fd Sterling Class £ 52.6090 - 0.0000 0.15
Q ACPI India Fixed Income UCITS Fund USD A $ 10.00 - -0.04 - Global Bond USD $ 3.44 3.71 -0.03 0.00 Global High Yield Bond 960.60 990.31 0.78 4.44
Other International Funds
Cheyne Real Estate Debt Fund Class A1 £ 130.82 - 0.23 0.00 Invesco Japanese Value Eq Fd A ¥ 1314.00 - 12.00 0.00 Lloyds Multi Strategy Fund Limited
ACPI India Fixed Income UCITS Fund USD A3 $ 85.47 - -0.35 0.00 NAV € 485.30 - 14.53 0.00 Global Macro Bond Fund 10955.68 11294.51 -32.94 0.82
Conservative Strategy £ 1.0910 - 0.0020 1.97
Axiom Alternative Investments (FRA) Cheyne Total Return Credit Fund - December 2017 Class $ 182.18 - 10.16 0.00 Invesco Latin American Equity A $ 6.02 - 0.08 0.00
ACPI International Bond UCITS Fund USD A $ 17.71 - 0.01 0.00 1 Conduit Street - 4th floor - London W1S 2XA Genesis Asset Managers LLP
North American Dividend Fund 156.58 163.10 1.48 2.18
Other International Funds Growth Strategy £ 1.4750 - 0.0050 1.32
www.axiom-ai.com Tel: +44 330 822 0374 Cheyne Total Return Credit Fund December 2019 $ 137.99 - 13.28 - Invesco Nippon Small/Mid Cap Equity A ¥ 1006.00 - 1.00 0.00
Regulated Equinox Fund Mgmt (Guernsey) Limited (GSY)
Emerging Mkts NAV £ 5.19 - 0.01 0.00 Optimal Income Fund 140.60 144.95 0.12 2.52
Regulated Aggressive Strategy £ 1.8130 - 0.0100 0.00
Invesco Pan European Equity A EUR Cap NAV € 20.23 - 0.22 0.00
ACPI Select UCITS Funds PLC (IRL) Axiom Contingent Capital € 1028.48 - 2.63 -
Regulated Equinox Russian Opportunities Fund Limited $ 119.90 - 3.71 0.00 Recovery Fund Limited 'A' Participating Shares 10139.89 10562.38 123.97 0.45
Cohen & Steers SICAV (LUX)
Invesco Pan European High Income Fd A € 14.09 - 0.04 2.39
Global USD Growth Strategy $ 1.4090 - 0.0110 0.00
Axiom Contingent Capital £ 1032.27 - 2.65 - Regulated
ACPI Balanced UCITS Fund USD Retail $ 13.97 - 0.01 0.00 HPB Assurance Ltd Dealing Daily Recovery Fund Limited 'I' Participating Shares 10161.91 10264.56 124.97 1.29
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Invesco Pan European Small Cap Equity A € 23.17 - 0.05 0.00
Axiom Equity $ 929.95 - -1.82 - European Real Estate Securities € 24.0041 - -0.0294 1.53
ACPI Balanced UCITS Fund EUR Retail € 10.54 - 0.01 0.00 Euronova Asset Management UK LLP (CYM) International Insurances
Regulated Strategic Corporate Bond Fund 132.49 138.01 0.14 2.97
Europ.RealEstate Sec. IX € 32.1356 - -0.0394 0.00 Invesco Pan European Structured Equity A € 18.03 - 0.21 0.00
Axiom Equity € 975.50 - -1.92 0.00 Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00
ACPI Balanced UCITS Fund GBP Retail £ 10.66 - 0.01 0.00 Smaller Cos Cls One Shares (Est) € 34.97 - -0.32 0.00 UK Select 1511.11 1574.07 5.10 1.20
Gbl Listed Infrastructure I $ 10.0317 - 0.0477 - Invesco UK Eqty Income A £ 32.07 - 0.21 0.00
Axiom Obligataire $ 1787.42 - 1.74 0.00 Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Smaller Cos Cls Two Shares (Est) € 24.46 - -0.21 0.00
Gbl Listed Infrastructure IX $ 10.0317 - 0.0477 - Invesco UK Investment Grade Bond A £ 0.98 - 0.00 2.94
Axiom Obligataire € 1785.34 - 1.80 0.00
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Smaller Cos Cls Three Shares (Est) € 12.32 - -0.10 0.00
Gbl RealEstate Sec. I $ 10.6594 - 0.0482 1.38 Hamon Investment Group Invesco US Structured Equity A $ 21.06 - 0.28 0.00
Axiom Obligataire £ 1796.13 - 1.64 0.00 Lombard Odier Funds (Europe) S.A (LUX)
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Smaller Cos Cls Four Shares (Est) € 15.83 - -0.14 0.00 Other International Funds
www.loim.com
Gbl RealEstate Sec. IX $ 12.6066 - 0.0570 0.00 Invesco US Value Eq Fd A $ 32.00 - 0.47 0.00
Asian Market Leaders - USD $ 24.84 - 0.37 0.00 Regulated
ACPI Horizon UCITS Fund $ 12.98 - 0.04 0.00
Lombard Odier Funds
BLME Asset Management (LUX) Invesco USD Reserve A $ 87.02 - 0.00 0.00
BLME Sharia'a Umbrella Fund SICAV SIF Asian Market Leaders - GBP £ 12.71 - 0.14 0.00
Absolute Ret Bond (EUR) PA € 11.97 - -0.01 0.00 MFS Investment Funds (LUX)
Regulated FCA Recognised
Greater China - USD $ 10.81 - 0.13 0.00
Income Fund - Share Class A Acc $ 1136.79 - -0.35 0.00 Absolute Ret Bond (USD) PA $ 17.60 - -0.01 0.00
Invesco Global Asset Management Ltd (IRL) Blend.Research Gb.Eq.Fd. € 107.39 - 1.25 -
Greater China - GBP £ 4.47 - 0.04 0.00 Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
Income Fund - Share Class B Acc $ 1157.27 - -0.36 0.00 FCA Recognised All Roads (CHF) PA SFr 17.47 - 0.02 0.00
Blend.Research Gb.Eq.Fd. £ 101.00 - 1.19 -
Selected Asian P'folio $ 45.16 45.17 -0.51 0.00
Income Fund - Share Class C Acc $ 1004.61 - -0.32 0.00 Eurobank Fund Management Company (Luxembourg) S.A. Invesco Stlg Bd A QD F £ 2.61 - 0.01 3.32 All Roads (USD) PA $ 11.14 - 0.02 0.00
Regulated Blend.Research U.S.Core Eq.Fd. ¥ 10666.00 - 192.00 -
Crèdit Andorrà Asset Management (LUX)
Algebris Investments (IRL)
Income Fund - Share Class D Dis $ 995.11 - -0.31 1.22 www.creditandorra.com Invesco Asian Equity A $ 6.27 - 0.10 0.51 All Roads (GBP) PA £ 11.37 - 0.01 0.00
(LF) Absolute Return € 1.33 - 0.00 0.00 Blend.Research Gb.Eq.Fd. $ 100.94 - 1.15 -
Regulated FCA Recognised Haussmann
Other International Funds Invesco ASEAN Equity A $ 88.64 - 0.67 0.44 All Roads (EUR) PA € 11.28 - 0.01 0.00
Algebris Financial Credit Fund - Class I EUR € 132.95 - 0.06 0.00 Income Fund - Share Class G Acc £ 1077.49 - -0.29 0.00 Crediinvest SICAV Money Market Eur I € 11.20 - 0.00 0.00 (LF) Eq Emerging Europe € 0.78 - 0.01 0.00 Em.Mk.Eq.Fund Euro € 116.83 - 0.63 0.00
Haussmann Cls A $ 2684.67 - -11.68 0.00 Invesco Bond A $ 26.81 - 0.05 2.20
Algebris Financial Income Fund - Class I EUR € 120.86 - 0.53 0.00 Income Fund - Share Class M Acc € 1011.00 - -0.33 0.00 (LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Alpha Japan (EUR) PA F € 11.95 - -0.02 0.00
Crediinvest SICAV Money Market Usd A $ 10.02 - 0.00 0.00 Em.Mk.Eq.Fund Sterling £ 96.16 - 0.52 0.00
Haussmann Cls C € 2349.99 - -9.81 0.00 Invesco Continental Eurp Small Cap Eqty A $ 196.29 - 2.41 0.00
Algebris Financial Equity Fund - Class B EUR € 99.77 - 0.01 - Income Fund - Share Class W DisA$ 1032.72 - -0.15 - (LF) Eq Mena Fund € 13.36 - 0.02 0.00 Alpha Japan (CHF) PA F SFr 14.92 - -0.02 0.00
Crediinvest SICAV Fixed Income Eur € 10.76 - 0.01 0.00 Em.Mk.Eq.Fd.US Dollar $ 95.00 - 0.48 0.00
Haussmann Cls D SFr 1244.25 - -5.57 0.00 Invesco Emerging Markets Equity A $ 36.21 - 0.48 0.00
Algebris Asset Allocation Fund - Class B EUR € 101.55 - -0.05 - Gl Sukuk Fund - Share Class A Acc $ 1226.28 - -1.39 0.00 (LF) Greek Government Bond € 19.72 - -0.17 - Alpha Japan (JPY) PA F ¥ 1421.00 - -2.00 0.00
Crediinvest SICAV Fixed Income Usd $ 10.44 - 0.00 0.00 Em.Mk.Loc.Ccy Debt Fd.FC ¥ 8215.00 - -140.00 5.79
Invesco Emerging Markets Bond A $ 21.17 - 0.08 4.76 Alpha Japan (USD) PA F $ 17.12 - -0.03 0.00
Gl Sukuk Fund - Share class B Acc £ 1094.73 1094.73 -1.19 0.00 Crediinvest SICAV Spanish Value € 255.83 - 2.34 0.00 (LF) Greek Corporate Bond € 12.22 - 0.00 - Em.Mk.Loc.Ccy Debt Fd.FD ¥ 9948.00 - -185.00 6.22
Heartwood Wealth Management Limited (IRL)
Alken Asset Management (LUX)
Regulated Invesco Continental European Equity A € 9.18 - 0.10 0.19 Alternative Beta PA F SFr 115.81 - 0.32 0.00
61 Conduit Street, London, W1S 2GB Crediinvest SICAV International Value € 226.98 - 1.96 0.00 (LF) FOF Dynamic Fixed Inc € 11.95 - 0.00 0.00 Gb.Conc.Eq.Fd.Euro € 297.40 - 2.99 0.00
www.alken-am.com Bank of America Cap Mgmt (Ireland) Ltd (IRL) Heartwood Caut Multi Asset B Acc 138.73 - 0.07 0.00 Invesco Gilt A £ 14.89 - 0.00 1.42
(LF) FOF Real Estate € 16.88 - 0.04 0.00 Alternative Beta PA F € 78.25 - 0.22 0.00
Regulated Regulated Crediinvest SICAV Big Cap Value € 16.24 - 0.13 0.00 Gb.Conc.Eq.Fd.Sterl.UK T £ 174.11 - 1.77 0.00
Invesco Global Small Cap Equity A NAV $ 121.15 - 1.53 0.00 Alternative Beta PA F $ 117.10 - 0.34 0.00
Alken European Opportunities € 217.95 - 0.29 0.00 Global Liquidity USD $ 1.00 - 0.00 0.26 Crediinvest SICAV US American Value $ 18.29 - 0.27 0.00 Gb.Conc.Eq.Fd.Sterling £ 263.61 - 2.68 0.00
FIL Fund Management (LUX) Invesco Global High Income A NAV $ 12.42 - 0.02 5.43 Commodities (CHF) PA SFr 4.98 - -0.02 0.00
Alken European Opportunities £ 121.96 - 0.17 0.00 Crediinvest SICAV Sustainability € 15.74 - 0.12 0.00 Gb.Conc.Eq.Fd.US $ 200.49 - 1.96 0.00
2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Barclays Investment Funds (CI) Ltd (JER) Phone: 800 22 089, 800 22 088 Invesco Gbl R/Est Secs A GBP F F £ 7.69 - 0.05 0.89 Commodities (EUR) PA € 5.04 - -0.03 0.00
Alken Absolute Return € 144.49 - -0.38 0.00 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Gb.Eq.Hdg Fd.Euro IRE T € 189.05 - 1.82 0.00
Regulated
FCA Recognised Invesco Global Health Care A $ 130.34 - 2.71 0.00
Alken Absolute Return £ 117.26 - -0.31 0.00 Daiwa SB Investments (UK) Ltd (LUX) China Consumer A-GBP £ 14.51 - -0.06 0.00 Commodities (USD) PA $ 5.22 - -0.03 0.00
Bond Funds Gb.Eq.Euro Hdg Fd. € 267.93 - 2.58 0.00
5 King William Street, London EC4N 7DA
www.daiwasbi.co.uk 0207 597 7000 Hermes Investment Funds Plc (IRL) Invesco Global Select Equity A $ 13.41 - 0.21 0.00
Alken Small Cap € 192.07 - -0.60 0.00 Sterling Bond F £ 0.45 - 0.00 3.34 China Focus A-GBP £ 4.25 - 0.00 0.71 Convertible Bd P A € 17.69 - 0.00 0.00
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 Gb.Eq.Fund Euro € 297.71 - 2.80 0.00
Regulated
FCA Recognised Invesco Jap Eqty Core A $ 1.85 - 0.03 0.00
Global Financial Services A-GBP £ 0.44 - 0.00 0.11 Convertible Bd Asia PA F SFr 13.59 - 0.01 0.00
DSBI Japan Equity Fundamental Active I JPY ¥ 12859.13 12859.13 99.62 0.00 Gb.Eq. Fd Euro IRE T € 188.34 - 1.77 0.00
Hermes Abs Return Credit Fund Class F Acc £ £ 1.00 1.00 0.00 -
Baring International Fd Mgrs (Ireland) (IRL)
Global Health Care A-GBP £ 0.55 - 0.00 0.00
Invesco Japanese Equity A $ 19.19 - 0.21 0.00 Convertible Bd Asia PA F € 14.51 - 0.02 0.00
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 DSBI Japan Equity Fundamental Active I GBP £ 127.72 127.72 0.98 0.00 Gb.Eq.Fd.Sterling UK T £ 210.74 - 2.00 0.00
Hermes Abs Return Credit Fund Class R Acc € € 2.05 2.05 0.00 -
FCA Recognised Invesco Korean Equity A $ 31.72 - 0.77 0.00
Global Industrials A-GBP £ 0.64 - 0.00 0.00 Convertible Bd Asia PA F $ 14.62 - 0.02 0.00
DSBI Japan Equity Fundamental Active A EUR € 122.61 128.74 0.96 0.00 Gb.Eq.Fd.US Dollar $ 316.83 - 2.87 0.00
ASEAN Frontiers A GBP Inc £ 106.72 - 0.59 0.60 Hermes Active UK Inflation Fund Class F Acc £ 1.27 1.27 -0.01 0.00
Invesco PRC Equity A $ 52.76 - 0.85 0.00 Emerg. Consumer (CHF) PA SFr 11.65 - 0.01 0.00
Global Inflation-Linked Bd A-GBP-Hdg £ 1.16 - 0.00 0.56 Gb.Eq.Fund Sterling £ 208.37 - 1.97 0.00
Asia Growth A GBP Inc H £ 43.35 - 0.23 0.00 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.55 1.55 0.03 0.00
DAVIS Funds SICAV (LUX) Invesco Pacific Equity A $ 47.77 - 0.88 0.18 Emerg. Consumer (EUR) PA € 11.80 - 0.01 0.00
Allianz Global Investors GmbH(1200) F (LUX) Global Real Asset Securities £ 1.38 - 0.00 0.00 Gb.Val.Ex-Jap.Fd.USD $ 119.05 - 1.22 0.00
FCA Recognised Australia A GBP Inc £ 66.72 - 1.12 2.04 Regulated Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.50 3.50 0.06 0.00
Invesco Global Technology A $ 16.36 - 0.33 0.00 Emerg. Consumer (USD) PA $ 11.79 - 0.01 0.00
Davis Value A $ 41.35 - 0.62 0.00 Global Technology A-GBP £ 0.26 - 0.00 0.00 Gb.Val.Ex-Japan Fd.Yen ¥ 14467.00 - 163.00 0.00
Allianz Best Styles Global Equity £ 106.70 106.70 1.68 - Hermes Global Emerging Markets Fund Class F Acc £ 1.15 1.15 0.01 0.00
Baring China Bond Fund $ 10.01 - 0.01 0.00
Invesco UK Eqty A £ 8.02 - 0.10 1.37 Emerg.Eq. Risk Par.(EUR) PA € 7.98 - 0.00 0.00
Davis Global A $ 28.81 - 0.23 0.00 Global Telecomms A-GBP £ 0.28 - 0.00 1.18 Gb.Val.Fd. Euro € 138.01 - 1.44 0.00
Allianz Global Fundamental Strategy £ 106.64 106.64 0.61 - Hermes Global Emerging Markets Fund Class R Acc € 3.04 3.04 0.02 0.00
Baring Emerging Markets Corporate Debt Fund $ 9.37 - -0.02 0.00
India Focus A-GBP £ 4.21 - -0.03 0.00 Emerg. Eq. Risk Par.(USD) PA $ 5.94 - 0.00 0.00
Allianz Global Small Cap Equity £ 109.91 109.91 1.28 - Gb.Val.Fd.Sterling £ 117.66 - 1.24 0.00
Hermes Global Equity Fund Class F Acc £ 1.52 1.52 0.02 0.00
Asset Management
Baring European Opportunities Fund Class A EUR Acc € 14.04 - 0.09 0.00

Asset Management
Emerg. Loc.Cur.&Bds DH (CHF) PASFr 7.88 - 0.00 0.00
Asset Management
Latin America A-GBP £ 1.36 - 0.00 0.65 Gb.Val.Fd.USD $ 105.92 - 1.08 0.00
Baring Global Mining Fund - Class A GBP Inc £ 3.60 - 0.09 0.60 Hermes Global Equity Fund Class R Acc € 4.15 4.15 0.05 0.00
Amundi Funds (LUX) Emerg.Loc.Cur.Bd.Fdt PA SFr 8.59 - 0.03 0.00
Low Volatility Gb.Eq.Fd.Euro € 107.10 - 0.80 -
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Dynamic Emerging Markets A GBP Acc F £ 8.77 - 0.06 0.00 Hermes Global ESG Equity Fund Class F Acc £ 1.16 1.16 0.01 0.00
Findlay Park Funds Plc (IRL)
Emerg.Loc.Cur.Bd.Fdt PA € 11.41 - 0.01 0.00
www.amundi-funds.com Low Volatility Gb.Eq.Fd.Sterl £ 100.72 - 0.76 -
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
FCA Recognised Eastern Europe A GBP Inc £ 43.46 - 0.51 1.78 Hermes Global High Yield Bond Fund Class F Acc £ 1.03 1.03 0.00 0.00
FCA Recognised Invest AD Emerg.Loc.Cur.Bd.Fdt PA $ 8.44 - 0.00 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.57 - 0.01 0.00 Dodge & Cox Worldwide Funds (IRL) Client services: +971 2 692 6101 clientservices@InvestAD.com Low Volatility Gb.Eq.Fd.USD $ 100.66 - 0.72 -
Emerging Mkt Debt LC A GBP Hedged Inc £ 7.30 - 0.03 6.50 American Fund USD Class $ 82.50 - 0.96 0.00 Hermes Global High Yield Bond Fund Class R Acc € 2.79 2.79 0.00 0.00
6 Duke Street,St.James,London SW1Y 6BN
Other International Funds Euro BBB-BB Fdt PA SFr 15.52 - 0.01 0.00
Bd. Global AU Class - R - USD $ 25.45 - 0.04 0.00 www.dodgeandcox.worldwide.com 020 3713 7664 Low Volatility Gb.Eq.Fd.Yen ¥ 9702.00 - 79.00 -
Emerging Opportunities A GBP Inc H £ 18.33 - 0.19 0.00 American Fund GBP Hedged £ 44.96 - 0.52 0.00 Hermes Global Small Cap Fund Class F Acc £ £ 0.99 0.99 0.01 -
FCA Recognised Invest AD - Iraq Opportunity Fund $ 60.55 - -1.30 0.00
Euro BBB-BB Fdt PA € 12.34 - 0.01 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Dodge & Cox Worldwide Funds plc - Global Bond Fund
Glb Emerging Markets A GBP Inc H £ 18.94 - 0.15 0.00 American Fund GBP Unhedged £ 54.03 - 0.45 - Hermes Global Small Cap Fund Class R Acc € € 2.04 2.04 0.02 -
Invest AD - Emerging Africa Fund $ 912.25 - 5.32 0.00
EUR Accumulating Class € 12.10 - -0.01 0.00 Euro BBB-BB Fdt PA £ 10.90 - 0.01 0.00 MFS Meridian Funds SICAV (LUX)
Eq. Emerging World AU Class - R - USD $ 82.33 - 0.02 0.00 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 1.00 1.00 0.01 - Regulated
Glb Resources A GBP Inc H £ 10.83 - 0.15 0.37 Latin American Fund USD Class $ 12.04 - 0.10 0.00 Invest AD - GCC Focus Fund $ 1401.68 - 1.77 0.00
EUR Accumulating Class (H) € 9.23 - 0.00 0.00 Euro BBB-BB Fdt PA $ 17.52 - 0.01 0.00
Eq. Greater China AU Class - R - USD $ 558.37 - -2.18 0.00 Absolute Return A1 € 20.52 - -0.09 0.00
High Yield Bond A GBP Hedged Inc H £ 6.25 - 0.00 7.01 Latin American Fund GBP Unhedged £ 7.89 - 0.04 - Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.03 1.03 0.00 0.00
EUR Distributing Class € 11.61 - 0.00 3.21 Euro Credit Bd PA F € 12.92 - 0.00 0.00
Eq. Latin America AU Class - R - USD $ 334.08 - 2.88 0.00 Asia ex-Japan A1 $ 22.81 - 0.15 0.00
Hong Kong China A GBP Inc £ 587.55 - 5.85 0.60 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.31 1.31 0.02 0.00
EUR Distributing Class (H) € 8.84 - -0.01 3.36 Euro Government Fdt PA € 12.61 - 0.03 0.00
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.79 - 0.00 0.00 Bond A1 $ 10.36 - -0.01 0.00
India Fund - Class A GBP Inc £ 13.75 - 0.18 0.00 Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.27 1.27 0.01 1.32
GBP Distributing Class £ 9.88 - -0.01 3.33 Euro Inflation-Lk Fdt PA € 12.10 - 0.02 0.00
China Equity Fd A1 $ 9.39 - 0.11 0.00
Latin America A USD Inc H $ 27.53 - 0.39 0.22 Hermes Sourcecap EU Alpha Fund Class R Acc € 3.31 3.31 0.04 0.00
The Antares European Fund Limited GBP Distributing Class (H) £ 8.92 - 0.00 3.33 Euro Resp.Corp. Fdt PA € 18.22 - 0.01 0.00
Continental European Eqty A1 € 17.97 - 0.01 0.00
Other International MENA A GBP Inc F * £ 12.00 - 0.04 0.65 Hermes Sourcecap EX UK Fund Class F Acc £ 1.36 1.36 0.02 0.00

Asset Management
GAM
USD Accumulating Class $ 9.30 - 0.00 0.00 Europe High Conviction PA € 12.07 - -0.01 0.00

Asset Management
funds@gam.com, www.jbfundnet.com Emer Mkts Debt Lo Curr Fd A1 $ 11.01 - 0.02 0.00
AEF Ltd Usd $ 654.57 - -7.40 - Fleming Financial Trust Investment Fund Limited (NZ) Hermes Sourcecap EX UK Fund Class R Acc € 3.32 3.32 0.04 0.00
Dodge & Cox Worldwide Funds plc-Global Stock Fund Regulated
Incorporated in New Zealand, Reg No 5141841 Eurozone Small&Mid Caps PA € 54.36 - -0.11 0.00
Baring International Fd Mgrs (Ireland) (IRL) Emerging Markets Debt A1 $ 33.06 - 0.04 0.00
AEF Ltd Eur € 656.97 - -7.67 0.00 Registered address: Level 5, 3 City Road, Graftn, Auckland, 1010, New Zealand Hermes UK Small & Mid Cap Fund Class F Acc £ 1.67 1.67 0.02 0.00 JB BF ABS-EUR B € 104.76 - 0.00 0.00
USD Accumulating Share Class $ 16.19 - 0.19 0.00
Regulated
www.fftinvestmentfund.com Fdmt.Eq.L/S SH Sd EUR PA € 10.62 - 0.06 0.00
Emerging Markets Eq.A1 $ 10.53 - 0.06 0.00
China A-Share A GBP Inc £ 5.70 - 0.14 0.00 info@fftinvestmentfund.com Hermes UK Small & Mid Cap Fund Class R Acc € 5.21 5.21 0.03 0.00 JB BF Abs Ret Def-EUR B € 109.83 - -0.11 0.00
GBP Accumulating Share Class £ 17.49 - 0.19 0.00
Other International Funds Fdmt.Eq.L/S SH Sd USD PA $ 10.65 - 0.05 0.00
Arisaig Partners European Concentrated A1 € 18.07 - 0.04 0.00
Fleming FT Investment Fund Hermes US All Cap Equity Class F Stg £ Acc £ 0.99 0.99 0.01 - JB BF Abs Ret EM-USD B $ 114.84 - 0.02 0.00
Other International Funds GBP Distributing Share class £ 12.75 - 0.13 0.83
Gbl.Gvt.Fdmt PA € 10.67 - 0.00 0.00
Barings (Luxembourg) (LUX) Fleming Fund £ 4.69 4.69 -0.01 - European Core Eq A1 € 32.56 - 0.02 0.00
Arisaig Africa Consumer Fund Limited $ 13.94 - -0.01 0.00 Hermes US All Cap Equity Class R € Acc € 2.03 2.03 0.02 - JB BF Abs Ret-EUR B € 128.67 - -0.12 0.00
FCA Recognised EUR Accumulating Share Class € 22.83 - 0.26 0.00
Gbl.Gvt.Fdmt.(CHF) PA SFr 23.22 - 0.10 0.00
European Res.A1 € 33.72 - 0.11 0.00
Arisaig Asia Consumer Fund Limited $ 62.97 - -0.45 0.00 Russia A GBP Inc F £ 26.60 - 0.37 0.00 Dodge & Cox Worldwide Funds plc-International Stock Fund Hermes US SMID Equity Fund Class F Acc £ 1.63 1.63 0.02 0.00 JB BF Abs Ret Pl-EUR B € 127.55 - -0.13 0.00

USD Accumulating Share Class $ 13.96 - 0.12 0.00 Foord Asset Mgt (Guernsey) Ltd (GSY) Gbl.Gvt.Fdt.SH (CHF) PA SFr 26.56 - 0.01 0.00
European Smaller Companies A1 € 52.80 - 0.16 0.00
Arisaig Global Emerging Markets Consumer UCITS € 12.38 - -0.03 0.00 Regulated Hermes US SMID Equity Fund Class R Acc € 3.64 3.64 0.05 0.00 JB BF EM Corporate-USD B $ 107.73 - 0.07 0.00
Gbl.5B Fdmt (EUR) PA € 12.04 - 0.01 0.00
BlackRock (JER) EUR Accumulating Share Class € 15.43 - 0.13 0.00 Foord International Trust $ 34.89 - 0.07 0.00 European Value A1 € 37.21 - 0.09 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 11.07 - -0.03 0.00 JB BF EM Infl Link-USD B $ 82.17 - 0.26 0.00
Regulated
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Gbl.5B Fdmt (CHF) PA SFr 10.69 - 0.05 0.00
Impax Asset Management (IRL)
JB BF EM Inv Grade-USD B $ 98.52 - 0.01 0.00
Global Conc.A1 $ 37.43 - 0.38 0.00
Arisaig Latin America Consumer Fund $ 21.36 - 0.06 0.00 BlackRock UK Property £ 41.04 - 0.05 3.41
USD Accumulating Share Class $ 18.39 - 0.27 0.00 Norfolk House, 31 St James's Square, London, SW1Y 4JR
Franklin Templeton International Services Sarl (IRL) FCA Recognised
Gbl.5B Fdmt SH (USD) PA $ 10.93 - 0.00 0.00
Global Credit Fund $ 10.25 - 0.00 0.00
Blackrock UK Long Lease £ 1070.55 - -0.01 0.00 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland JB Emerging (EUR)-EUR B € 333.75 - 0.60 0.00
GBP Accumulating Share Class £ 18.78 - 0.25 0.00 Env Mkts (Ire) Stl A £ 2.20 - 0.02 0.00
Other International Funds Generation Global (CHF) PA F SFr 14.18 - 0.10 0.00
Artisan Partners Global Funds PLC (IRL)
JB Emerging (USD)-USD B $ 407.82 - 0.67 0.00
Global Energy Fund A1 $ 12.88 - 0.17 0.00
BLK Intl Gold & General $ 3.81 4.03 0.09 0.00 Franklin Emerging Market Debt Opportunities Fund Plc
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland GBP Distributing Share Class £ 11.96 - 0.16 0.58 Env Mkts (Ire) Euro A € 2.15 - 0.02 0.00 Generation Global (EUR) PA F € 21.52 - 0.07 0.00
Tel: 44 (0) 207 766 7130 Franklin Emg Mkts Debt Opp CHFSFr 16.93 - -0.14 8.25 Global Equity A1 $ 45.90 - 0.43 0.00
JB BF Local EM-USD B $ 250.74 - 0.35 0.00
FCA Recognised EUR Accumulating Share Class € 22.39 - 0.32 0.00 Env Mkts (Ire) USD A $ 1.75 - 0.02 0.00 Generation Global (USD) PA F $ 15.63 - 0.05 0.00
Artisan Partners Global Funds plc BONHOTE Franklin Emg Mkts Debt Opp EUR € 11.91 - -0.08 7.35 JB BF Total Ret-EUR B € 97.64 - 0.04 0.00
Global Equity A1 € 27.25 - 0.16 0.00
Other International Funds
Artisan Emerging Markets I USD Acc $ 6.96 - 0.01 0.00 Global Energy (USD) PA F $ 6.92 - 0.14 0.00
Franklin Emg Mkts Debt Opp GBP £ 9.93 - -0.13 7.14 Global High Yield Fund $ 24.48 - 0.00 0.00
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6725.00 - -45.00 2.25 JB EF Abs Ret Eur-EUR B € 120.16 - -0.11 0.00
INDIA VALUE INVESTMENTS LIMITED (INVIL)
Artisan Global Equity Fund Class I USD Acc $ 14.71 - 0.18 0.00 www.invil.mu Golden Age (CHF) PA F SFr 21.46 - 0.18 0.00
Franklin Emg Mkts Debt Opp SGD S$ 21.92 - -0.27 6.31 Global High Yield Fund € 16.70 - -0.05 0.00
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9652.00 - -153.00 0.94 JB EF Euro Value-EUR B € 181.96 - 1.24 0.00
Other International Funds
Artisan Global Opportunities I USD Acc $ 12.43 - 0.11 0.00 Golden Age (EUR) PA € 14.60 - 0.12 0.00
Franklin Emg Mkts Debt Opp USD $ 16.83 - -0.15 7.14 Global Multi-Asset A1 $ 15.24 - 0.06 0.00
NAV £ 7.57 - 0.05 0.00 JB EF Japan-JPY B ¥ 18180.00 - 196.00 0.00
Artisan Global Value Fund Class I USD Acc $ 16.04 - 0.12 0.00 Golden Age (USD) PA F $ 20.26 - 0.17 0.00
Braemar Group PCC Limited (GSY) Global Res.A1 $ 25.95 - 0.34 0.00
JB EF Luxury B-EUR B € 225.81 - 0.85 0.00
Artisan US Value Equity Fund Class I USD Acc $ 11.09 - 0.16 0.00
Regulated Dragon Capital Group Sh.T- Money Mkt EUR PA € 112.29 - 0.00 0.00
c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Frontier Capital (Bermuda) Limited Intrinsic Value Investors (IVI) LLP (IRL) Global Total Return A1 € 18.25 - 0.06 0.00
UK Agricultural Class A £ 1.26 - 0.00 0.00 JB Ms EF Special Val. EUR/A € 140.38 - 1.16 0.77
Fund information, dealing and administration: funds@dragoncapital.com Other International 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Sh.T- Money Mkt CHF PA SFr 128.62 - 0.00 0.00
Other International Funds FCA Recognised Inflation-Adjusted Bond A1 $ 13.81 - 0.02 0.00
UK Agricultural Class B £ 1.41 - 0.02 0.00 Commercial Property-GBP Class £ 71.42 - -0.53 - JB Strategy Balanced-CHF/B SFr 151.71 - 0.72 0.00
Ashmore Sicav (LUX)
IVI European Fund EUR € 18.17 - -0.02 0.00
Vietnam Enterprise Inv. (VEIL) NAV $ 3.73 - -0.05 0.00 Sh.T- Money Mkt GBP PA £ 10.27 - 0.00 0.00
2 rue Albert Borschette L-1246 Luxembourg Japan Equity A1 $ 10.48 - 0.06 0.00
Student Accom Class B £ 0.55 - -0.17 0.00 Global Real Estate-GBP C Class £ 45.26 - -0.50 - JB Strategy Balanced-EUR € 157.08 - 0.53 0.00
FCA Recognised
Vietnam Growth Fund (VGF) NAV $ 24.04 - -0.23 0.00 IVI European Fund GBP £ 17.25 - -0.02 1.02 Sh.T- Money Mkt USD PA $ 10.31 - 0.00 0.00
Latin American Equity Fd A1 $ 12.07 - 0.16 0.00
Ashmore SICAV Emerging Market Debt Fund $ 94.08 - 0.26 8.28 JB Strategy Balanced-USD/B $ 130.23 - 0.55 0.00
Vietnam Property Fund (VPF) NAV $ 0.81 - 0.01 0.00 GAM Limited (IRL) Sw.Fr.Bd(For) PA SFr 23.82 - 0.02 0.00
CG Asset Management Limited (IRL) Limited Maturity A1 $ 14.01 - -0.01 0.00
Ashmore SICAV Emerging Market Frontier Equity Fund $ 146.67 - 0.14 0.93 JB Strategy Growth-CHF/B SFr 93.78 - 0.64 0.00
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland FCA Recognised
GAM Fund Management Ltd Sw.Fr.Credit Bd(For) PA SFr 13.65 - 0.00 0.00
00 353 1 434 5098 Prudent Wealth Fd A1 $ 14.69 - 0.04 0.00
Ashmore SICAV Emerging Market Total Return Fund $ 80.46 - 0.17 5.86 JB Strategy Growth-EUR € 118.07 - 0.59 0.00
FCA Recognised DSM Capital Partners Funds (LUX) Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927
Tactical Alpha (CHF) PA SFr 10.11 - -0.02 0.00
www.dsmsicav.com GAM Star Fund Plc Research Bond A1 $ 16.51 - 0.00 0.00
Ashmore SICAV Global Small Cap Equity Fund $ 125.42 - 0.85 0.00 Capital Gearing Portfolio Fund Plc £ 26720.11 26720.11 -10.84 0.62 JB Strategy Inc-CHF/B SFr 120.37 - 0.34 0.00
Regulated
GAM Star Asia-Pacific Eqty USD Acc F $ 12.19 - 0.15 0.00 Tactical Alpha (EUR) PA € 10.41 - -0.02 0.00
CG Portfolio Fund Plc UK Equity A1 £ 8.03 - 0.05 0.00
Ashmore SICAV Local Currency Fund $ 81.47 - 0.06 0.31 Global Growth I2 Acc € 140.82 - 1.67 0.00 JB Strategy Inc-EUR/B € 161.20 - 0.29 0.00
Real Return Cls A £ 164.54 164.54 -1.00 2.40 GAM Star Asian Eqty USD Ord Acc F $ 13.61 - 0.16 0.00 Invesco (LUX) Tactical Alpha (USD) PA $ 14.98 - -0.03 0.00
US Conc.Growth A1 $ 15.67 - 0.21 0.00
EM Mkts Corp.Debt USD F $ 91.17 - 0.14 8.26 Global Growth I1 Eur € 105.32 - 1.24 - Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 JB Strategy Inc-USD/B $ 146.57 - 0.34 0.00
Dollar Fund Cls D £ 128.06 128.06 -0.85 1.63 FCA Recognised Technology PA € 13.41 - 0.17 0.00
GAM Star Balanced GBP Acc £ 10.34 - 0.02 0.00 US Government Bond A1 $ 17.02 - 0.00 0.00
EM Mkts Loc.Ccy Bd USD F $ 76.26 - 0.07 4.34 Invesco Management SA
Capital Value Fund Cls V £ 129.54 129.54 -0.15 0.27 GAM Star Cap.Appr.US Eqty USD Inc F $ 17.19 - 0.36 0.00 Technology PA $ 20.32 - 0.25 0.00
Edinburgh Partners Limited (IRL) Invesco Active Multi-Sector Credit Fund A € 2.90 - 0.00 0.00 Value A1 $ 22.29 - 0.33 0.00
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143
GAM Star Cat Bond USD Acc $ 12.71 - 0.01 0.00 Wld Gold Expertise PAF SFr 8.52 - 0.20 0.00
Dealing - Fax only - +353 1 434 5230 Invesco Asia Balanced A dist $ 14.18 - 0.13 3.66
Cedar Rock Capital Limited (IRL) FCA Recognised
Wld Gold Expertise PA € 6.80 - 0.16 0.00 MMIP Investment Management Limited (GSY)
Regulated Edinburgh Partners Opportunities Fund PLC GAM Star Cautious GBP Acc £ 10.38 - 0.04 0.00 Invesco Asia Consumer Demand Fund A income $ 12.56 - 0.23 0.24 Regulated
Cedar Rock Capital Fd Plc $ 358.82 - -14.23 0.00 European Opportunities I EUR € 2.59 - 0.02 2.26 Wld Gold Expertise PA $ 9.06 - 0.21 0.00 Multi-Manager Investment Programmes PCC Limited
GAM Star China Equity USD Acc F $ 23.27 - -0.04 0.00 Invesco Asia Infrastructure (A) $ 12.59 - 0.17 0.75
Kames Capital VCIC (IRL)
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 LO Selection European Equity Fd Cl A Initial Ser € 2579.25 2589.39 212.70 0.00
Cedar Rock Capital Fd Plc £ 370.83 - -8.40 0.00 European Opportunities I GBP £ 1.81 - 0.01 2.48 GAM Star Cont European Eqty GBP Acc F £ 3.53 - -0.01 0.00 Invesco Asia Opportunities Equity A $ 102.48 - 2.12 0.00 FCA Recognised
Aspect Capital Ltd (UK) Balanced (CHF) PA F SFr 109.48 - 0.37 0.00 Japanese Equity Fd Cl A Initial Ser ¥ 361904.00 363123.00 28252.00 0.00
Other International Funds Cedar Rock Capital Fd Plc € 348.08 - -3.48 0.00 European Opportunities I USD $ 2.77 - 0.01 2.01 GAM Star Cred Opportunities GBP Acc £ 12.32 - 0.01 4.60 Absolute Return Bond B GBP Acc 1079.36 - 0.17 -
Invesco Balanced Risk Allocation Fund A € 14.68 - 0.07 0.00
Balanced (EUR) PA F € 127.92 - 0.23 0.00 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1135.99 1139.27 -48.31 0.00
Aspect Diversified USD $ 418.24 - 5.95 0.00
European Opportunities A EUR € 2.53 - 0.02 1.57 GAM Star Discretionary FX USD Acc F $ 13.03 - 0.00 0.00 Invesco Emerging Europe Equity Fund A $ 8.38 - 0.12 0.00 Eq Market Neutral B Acc 1010.40 - -0.42 -
Conservative (CHF) PA F SFr 104.67 - 0.19 0.00
Aspect Diversified EUR € 251.56 - 3.58 - Charles Schwab Worldwide Funds Plc (IRL) Pacific Basin Fd Cl A Initial Ser $ 2142.33 2154.57 139.28 0.00
Regulated Global Opportunities I USD $ 1.66 - 0.01 2.05 GAM Star Dynamic Gbl Bd USD Acc H $ 9.77 - 0.01 0.00 Invesco Emerging Local Currencies Debt A Inc $ 6.93 - 0.03 6.87 Eq Market Neutral Plus B Acc 1009.34 - -0.49 -
Conservative (EUR) PA F € 115.30 - 0.13 0.00 UK Equity Fd Cl A Series 01 £ 2356.72 2380.35 78.79 0.00
Aspect Diversified GBP £ 128.75 - 1.85 0.00
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Global Opportunities I GBP £ 1.09 - 0.00 1.95 GAM Star Emerg. Market Rates USD Acc F $ 11.49 - 0.02 0.00 High Yield Global Bond A GBP Inc 521.30 - -0.05 3.64
Invesco Emerging Mkt Quant.Eq. A $ 9.29 - 0.14 0.00
Global Allocation (GBP) PA F £ 9.99 - 0.01 0.00 Diversified Absolute Rtn Fd USD Cl AF2 $ 1591.09 - 14.69 0.00
Aspect Diversified CHF SFr 120.28 - 1.71 0.00
Global Opportunities I EUR € 1.52 - -0.01 1.98 GAM Star European Eqty USD Acc F $ 23.20 - -0.08 0.00 Invesco Energy A $ 19.26 - 0.32 0.00 High Yield Global Bond B GBP Inc 1082.67 - -0.09 4.14
Chartered Asset Management Pte Ltd Growth (CHF) PA F SFr 115.34 - 0.53 0.00 Diversified Absolute Return Stlg Cell AF2 £ 1611.67 - 15.03 0.00
Aspect Diversified Trends USD $ 126.57 - 1.10 0.00
Global Opportunities A GBP £ 1.02 - 0.00 1.47 GAM Star Flexible Gbl Port GBP Ac £ 12.66 - 0.03 0.00 Invesco Euro Corporate Bond Fund (A) € 17.07 - 0.02 0.00 Investment Grade Global Bd A GBP Inc 554.22 - 0.19 2.36
Other International Funds
Growth (EUR) PA F € 139.57 - 0.32 0.00
Aspect Diversified Trends EUR € 126.68 - 1.10 0.00
CAM-GTF Limited $ 279984.63 279984.63 -8357.62 0.00 Pan European Opportunities I EUR € 1.57 - 0.01 - GAM Star GAMCO US Equity Acc F $ 13.35 - 0.20 0.00 Kames Global Equity Income B GBP Acc 1173.20 - 7.85 -
Invesco Euro Inflation Linked Bond A € 15.71 - 0.01 0.00
Vantage 1500 (EUR) MA € 10.21 - 0.00 0.00 LNG Capital (CYM)
Aspect Diversified Trends GBP £ 131.48 - 1.14 0.00
CAM GTi Limited $ 649.70 - 30.41 0.00 GAM Star Global Rates USD Acc F $ 12.46 - -0.05 0.00 Kames Global Equity Income B GBP Inc 1118.32 - 7.48 - Kingsbury House, 15-17 King St, London SW1Y 6QU
Invesco Euro Reserve A € 322.73 - 0.00 0.00
Vantage 3000 (EUR) MA € 10.35 - 0.01 0.00 www.lngcapital.com, Tel: 0207 839 3456
Raffles-Asia Investment Company $ 1.66 1.66 0.11 7.80 GAM Star Global Selector USD Acc F $ 12.78 - 0.04 0.00 Strategic Global Bond A GBP Inc 1092.92 - 0.27 0.71 Regulated
Invesco Euro Bond A € 7.17 - 0.01 0.00 PrivilEdge
Atlantas Sicav (LUX)
LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 -
Regulated GAM Star Japan Eqty USD Acc F $ 13.58 - 0.19 0.00 Strategic Global Bond B GBP Inc 619.83 - 0.16 1.21
Invesco European Growth Equity A € 25.59 - 0.23 0.00 Inc.Pt.RMB Dt.CNH PA CNH 102.95 - -0.03 0.00
American Dynamic $ 3457.93 - -90.79 0.00 LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 -
GAM Star Keynes Quant Strat USD Acc F $ 12.09 - 0.05 0.00 Invesco Global Absolute Return Fund A Class € 11.77 - 0.01 0.00 Inc.Pt.RMB Dt.SH CHF PA SFr 9.85 - -0.01 0.00
American One $ 3190.90 - -52.74 0.00 Lloyds Investment Fund Managers Limited (1000)F (JER) LNG Europa Credit Fund USD $ 1199.05 - -12.58 -
EFG Hermes GAM Star Local EM Rates and FX USD Acc $ 10.63 - -0.07 0.00 Invesco Global Bond A Inc $ 5.51 - 0.01 0.75 Inc.Pt.RMB Dt.SH EUR PA € 9.93 - -0.02 0.00
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE
Bond Global € 1426.24 - 8.75 0.00 Other International Funds
Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com GAM Star North of South EM Equity Acc F $ 10.15 - -0.02 0.00 Inc.Pt.RMB Dt.USD PA $ 10.01 - -0.01 0.00
Invesco Global Conservative Fund 90 (EUR) A € 11.95 - 0.03 0.00
Eurocroissance € 898.03 - -5.50 0.00 Other International Funds Lloydstrust Gilt £ 12.1200xd - 0.0300 2.42 Marlborough International Management Limited (GSY)
Cheyne Capital Management (UK) LLP (IRL) GAM Star Technology USD Acc F $ 15.58 - 0.23 0.00 Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
Invesco Global Equity Income Fund A $ 60.29 - 0.86 0.00 Jenn. US Eq.Opp. USD PA $ 9.78 - 0.15 0.00
Regulated The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Lloyds Investment Funds Limited FCA Recognised
Far East $ 685.43 - -5.00 0.00
GAM Star US All Cap Eqty USD Acc F $ 13.65 - 0.19 0.00 Invesco Global Inc Real Estate Sec A dist $ 9.14 - 0.07 2.19 Euro High Income € 1.6240xd - 0.0020 2.89 Neubrg.Berman US Core PA $ 13.97 - 0.21 0.00 Marlborough North American Fund Ltd £ 31.18 31.49 -0.05 0.00
Cheyne Convertibles Absolute Return Fund € 1369.28 - 1.09 0.00 Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00

Cheyne Global Credit Fund € 118.76 - 0.01 0.00 GAM Star Worldwide Eqty USD Acc F $ 3160.49 - 5.51 0.00 Invesco Global Inv Grd Corp Bond A Dist $ 11.79 - 0.01 3.04 European £ 7.5210xd - 0.1000 1.12 Sands US Growth PA € 14.63 - 0.26 0.00 Marlborough Tiger Fund Ltd F £ 25.56 25.82 -1.12 0.00
Atlantis Investment Management Ltd (IRL) Saudi Arabia Equity Fund SR 12.66 - -0.19 0.00
2nd Floor, 13 St Swithin's Lane, London EC4N 8AL
Cheyne European Mid Cap Fund € 1150.92 - 10.51 0.00 Invesco Global Leisure A $ 37.18 - 0.63 0.00 High Income £ 0.8603xd - 0.0024 4.97 Sands US Growth PA $ 17.68 - 0.31 0.00
www.atlantis-investmenet.com, Tel: 0207 877 3377
Regulated GYS Investment Management Ltd (GSY)
Invesco Global Smaller Comp Eq Fd A $ 57.48 - 0.76 0.00 International £ 4.0170xd - 0.0520 1.03 Will.Blair Gbl. Ldrs PA € 16.66 - 0.18 0.00
Regulated
Atlantis China Fund $ 6.44 - 0.00 0.00
Taurus Emerging Fund Ltd $ 190.92 194.82 -1.17 0.00 North American £ 15.6500xd - 0.1900 0.06 Will.Blair Gbl. Ldrs PA $ 13.23 - 0.13 0.00
Friday 20 November 2015 ★ FINANCIAL TIMES 21

MANAGED FUNDS SERVICE

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

Asia Pac Eq USD Inst Acc $ 96.10 - -0.15 0.00 Optima Partners Global Fd $ 14.28 - 0.04 0.00 PCG C 167.09 - 0.34 0.00 Renminbi Bond Fund AUD Cls A A$ 121.44 - -0.07 3.78 Value Partners Classic Equity Fund USD Z Unhedged $ 11.26 - 0.09 0.00

Marwyn Asset Management Limited (CYM) Pimco Fds: Global Investors Series Plc (IRL)
Asia Pac Eq USD Inst Inc $ 101.19 - -0.16 3.82 Optima Partners Focus Fund A $ 15.86 - 0.16 0.00 Renminbi Bond Fund AUD Cls B A$ 123.23 - -0.07 3.52 Value Partners Classic Equity Fund CHF HedgedSFr 11.81 - 0.09 0.00
Regulated PIMCO Europe Ltd,11 Baker Street,London W1U 3AH

Marwyn Value Investors £ 463.87 - -14.48 0.00

http://gisnav.pimco-funds.com/ Putnam Investments (Ireland) Ltd (IRL)
Dyn Europ Eq EUR Ord Inc € 180.62 - -0.04 1.34 Renminbi Bond Fund CHF Cls A SFr 118.39 - -0.07 3.83 Value Partners Classic Equity Fund EUR Hedged € 11.93 - 0.09 0.00
Dealing: +44 20 3640 1000 Regulated
Oryx International Growth Fund Ltd PIMCO Funds: +44 (0)20 3640 1407
Dyn Europ Eq GBP Ord Inc £ 191.83 - -0.03 1.71 Putnam New Flag Euro High Yield Plc - E € 1017.37 - 0.38 4.30 Renminbi Bond Fund CHF Cls B SFr 118.12 - -0.07 3.59 Value Partners Classic Equity Fund GBP Hedged £ 12.20 - 0.10 0.00
Other International Funds FCA Recognised
Meridian Fund Managers Ltd
Dyn Europ Eq USD Ord Inc $ 180.17 - -0.03 1.26 NAV (Fully Diluted) £ 6.69 - 0.06 0.00 Capital Securities Inst Acc $ 15.10 - 0.02 0.00 Renminbi Bond Fund CNH Cls A CNH 126.63 - 0.09 3.34 Value Partners Classic Equity Fund GBP Unhedged £ 12.47 - -0.01 0.00
Guide to Data
Other International Funds

Global Gold & Resources Fund $ 179.68 - 10.63 - China Equity EUR Ord Acc € 138.09 - -1.66 0.00 Commodity Real Return Fund Inst Acc $ 5.94 - -0.01 0.00 Renminbi Bond Fund CNH Cls B CNH 126.30 - 0.08 3.11 Value Partners Classic Equity USD Hedged $ 13.86 - 0.11 0.00
The fund prices quoted on these pages are supplied by
Global Energy & Resources Fund $ 33.88 - 1.76 - China Equity GBP Ord Acc £ 144.39 - -1.68 0.00 OTP Asset Management Romania SAI SA ((ROM)) Credit Absolute Return Fund Inst Acc $ 11.10 - -0.02 0.00 Renminbi Bond Fund Euro Cls B € 119.82 - -0.07 3.59 Value Partners Greater China Equity Fund $ 8.75 - -0.03 - the operator of the relevant fund. Details of funds
www.otpfonduri.ro published on these pages, including prices, are for the
Other International Funds Diversified Income - Inst Acc $ 19.36 - 0.00 0.00
purpose of information only and should only be used as
China Equity USD Ord Acc $ 140.56 - -1.63 0.00 Renminbi Bond Fund GBP Cls B £ 121.87 - -0.07 3.38 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.70 - -0.08 - a guide. The Financial Times Limited makes no
OTP Comodisro $ 16.84 - 0.00 - representation as to their accuracy or completeness and
Mirabaud Asset Management (LUX)
China Equity USD Inst Acc $ 144.44 - -1.66 0.00 Diversified Income Durat Hdg Fund Inst Acc $ 11.31 - -0.01 0.00 Robeco Asset Management (LUX) Renminbi Bond Fund SGD Cls B S$ 121.00 - -0.08 3.34 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 9.28 - -0.09 - they should not be relied upon when making an
www.mirabaud.com, marketing@mirabaud.com investment decision.
OTP Obligatiuni $ 14.25 - 0.00 - Coolsingel 120, 3011 AG Rotterdam, The Netherlands.
Regulated Emerging Asia Bond Fund Inst Acc $ 9.63 - 0.01 0.00
Global Val.Cr.Fd GBP Ord Inc £ 111.54 - 0.02 3.60 www.robeco.com/contact Renminbi Bond Fund USD Cls B $ 121.25 - -0.07 3.15 Value Partners Health Care Fund USD Class A Unhedged $ 9.32 - -0.09 -
The sale of interests in the funds listed on these pages
Mir. Conv. Bds Eur A EUR € 140.05 - -0.12 0.00 OTP Avantisro $ 8.55 - -0.01 - FCA Recognised may, in certain jurisdictions, be restricted by law and
Global Val.Cr.Fd USD Inst Acc $ 123.18 - 0.02 0.00 Emerging Local Bond - Inst Acc $ 10.85 - 0.01 0.00 Renminbi Bond Fund YEN Cls B ¥ 13350.69 - -4.64 0.00 the funds will not necessarily be available to persons in
Asia-Pacific Equities (EUR) € 137.91 - 1.08 0.00 all jurisdictions in which the publication circulates.
Mir. Conv. Bds Glb A USD $ 117.50 - -0.04 0.00 OTP Euro Bond $ 12.40 - 0.00 -
Emerging Markets Bond - Inst Acc $ 38.32 - 0.05 0.00 Veritas Asset Management LLP (IRL) Persons in any doubt should take appropriate
Global Val.Cr.Fd GBP Ord Acc £ 177.62 - 0.04 0.00 Renminbi Bond Fund USD Cls A $ 167.25 - -0.09 3.38
Chinese Equities (EUR) € 78.41 - 0.49 0.00 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland professional advice. Data collated by Morningstar. For
Mir. - Eq Asia ex Jap A $ 175.02 - 2.95 0.00 OTP Dollar Bond $ 10.58 - 0.00 - other queries contact reader.enquiries@ft.com +44
Veritas Funds Plc
Global Val.Cr.Fd USD Ord Acc $ 166.70 - 0.02 0.00 Emerging Markets Corp.Bd Fund Inst Acc F $ 12.85 - 0.01 0.00 Renminbi Bond Fund GBP Cls A £ 162.51 - -0.08 3.62 (0)207 873 4211.
Em Stars Equities (EUR) € 179.59 - 3.01 0.00 www.veritas-asset.com
Mir. - Eq Glb Emrg Mkt A USD $ 89.87 - 1.45 0.00 OTP Premium Return $ 1072.23 - 0.26 - +353 1 635 6799
Global Val.Cr.Fd EUR Ord Acc € 155.36 - 0.03 0.00 Emerging Markets Short-Term Local Currency Fund $ 11.78 - 0.00 0.00 Renminbi Bond Fund SGD Cls A S$ 160.34 - -0.10 3.58
The fund prices published in this edition along with
Emerging Markets Equities (EUR) € 148.93 - 0.59 0.00 FCA Recognised additional information are also available on the
Mir. - Eq Global Focus A USD $ 102.54 - 1.22 0.00 Financial Times website, www.ft.com/funds. The
Institutional
Swiss Select Equity Inst Acc SFr 114.44 - 0.31 0.00 Euro Bond - Inst Acc € 22.82 - 0.04 0.00 Renminbi Bond Fund YEN Cls A ¥ 19767.64 - -6.93 0.00 funds published on these pages are grouped together by
Flex-o-Rente (EUR) € 109.41 - 0.05 0.00
Mir. -Eq Spain A € 26.72 - -0.12 0.00 Veritas Asian Fund A USD H $ 314.47 - 4.76 0.43 fund management company.
Swiss Select Equity Ord Acc SFr 113.19 - 0.30 0.00 Euro Credit - Inst Acc € 14.81 - 0.02 0.00 Renminbi Bond Fund EUR Cls A € 110.24 - -0.07 3.83
Glob.Consumer Trends Equities (EUR) € 161.74 - 1.90 0.00 Prices are in pence unless otherwise indicated. The
Mir. - Eq Swiss Sm/Mid A SFr 329.04 - 1.70 0.00 Veritas Asian Fund A GBP H £ 381.47 - 5.03 0.25
change, if shown, is the change on the previously
US Growth USD Ord Acc $ 214.44 - 4.11 0.00 Euro Income Bond - Inst Acc F € 13.02 - 0.01 0.00 quoted figure (not all funds update prices daily). Those
High Yield Bonds (EUR) € 124.75 - -0.02 0.00
Mir. - Glb High Yield Bds A $ 108.64 - -0.07 - Veritas Asian Fund A EUR H € 333.33 - 3.96 0.22 designated $ with no prefix refer to US dollars. Yield
US Growth EUR Ord Acc € 205.34 - 4.08 0.00 Euro Long Average Duration - Inst Acc € 21.79 - 0.16 0.00 percentage figures (in Tuesday to Saturday papers)
Lux -O- Rente (EUR) € 140.15 - 0.18 0.00 allow for buying expenses. Prices of certain older
Mir. - Glb Eq High Income A USD $ 100.44 - 0.69 0.00 Permal Investment Mgmt Svcs Ltd Veritas China Fund A USD $ 142.09 - 1.47 0.35 insurance linked plans might be subject to capital gains
US Growth GBP Ord Acc £ 215.73 - 4.17 0.00 www.permal.com Euro Low Duration Fund Inst Acc € 11.30 - 0.00 0.00 tax on sales.
New World Financials (EUR) € 55.73 - 0.46 0.00
Mir. - Glb Inv Grade Bds A € 101.04 - 0.13 - Other International Funds Veritas China Fund A GBP £ 147.12 - 1.51 0.37
US Growth USD Inst Acc $ 197.96 - 3.79 0.00 Offshore Fund Class A US $ Shares Euro Real Return - Inst Acc € 13.57 - 0.03 0.00 Guide to pricing of Authorised Investment Funds
US Premium Equities (EUR) € 184.57 - 2.68 0.00 (compiled with the assistance of the IMA. The
Mir. - Glb Strat. Bd A USD $ 104.84 - 0.01 0.00 Veritas China Fund A EUR € 140.73 - 1.46 0.37
Investment Holdings N.V. $ 5437.88 - 160.86 0.00 Investment Management Association, 65 Kingsway,
Wealthy Nat Bd EUR Inst Inc € 109.24 - 0.09 3.75 Euro Short-Term Inst Acc € 12.28 - 0.00 0.00 E.I. Sturdza Strategic Management Limited (GSY) London WC2B 6TD. Tel: +44 (0)20 7831 0898.)
US Premium Equities (USD) $ 206.34 - 3.00 0.00
Regulated Veritas Global Equity Income Fund D USD $ 116.69 - 2.67 4.14
Wealthy Nat Bd GBP Inst Inc £ 113.40 - 0.09 3.59 Macro Holdings Ltd $ 4125.71 - -83.51 0.00 Euro Ultra Long Duration - Inst Acc € 28.48 - 0.24 0.00 OEIC: Open-Ended Investment Company. Similar to a
MW Japan Fund Plc (IRL) Nippon Growth Fund Limited ¥ 106273.37 - 3516.59 0.00 unit trust but using a company rather than a trust
Veritas Global Equity Income Fund D EUR € 211.03 - 3.87 4.10
FCA Recognised Fixed Income Holdings N.V. $ 366.06 - 2.19 - structure.
Wealthy Nat Bd EUR Ord Inc € 108.43 - 0.09 3.51 Global Advantage - Inst Acc $ 11.97 - 0.00 0.00
Strat Evarich Japan Fd Ltd JPY ¥ 96739.00 - 569.00 0.00
MW Japan Fund PLC A $ 25.63 - 0.33 - Veritas Global Equity Income Fund D GBP £ 148.48 - 2.89 4.21
Permal Absolute Return Fund $ 163.11 - 0.59 0.00 Different share classes are issued to reflect a different
Wealthy Nat Bd GBP Ord Inc £ 114.00 - 0.10 3.33 Global Advantage Real Return Fund Inst Acc $ 8.48 - 0.02 0.00
Strat Evarich Japan Fd Ltd USD $ 958.08 - 5.71 0.00 currency, charging structure or type of holder.
MW Japan Fund PLC B $ 25.85 - 0.34 - Veritas Global Focus Fund D USD $ 25.95 - 0.30 0.64
Wealthy Nat Bd USD Ord Inc $ 110.94 - 0.09 3.31 Global Bond - Inst Acc $ 27.89 - 0.02 0.00 Selling price:Also called bid price. The price at which
MW Japan Fund PLC C $ 100.88 - 1.10 - Veritas Global Focus Fund D EUR € 24.39 - 0.18 0.64 units in a unit trust are sold by investors.
New Capital Alternative Strategies Global Bond Ex-US - Inst Acc $ 19.53 - 0.03 0.00
S W Mitchell Capital LLP (CYM)
E.I. Sturdza Funds PLC (IRL)
Regulated Veritas Global Focus Fund D GBP £ 28.85 - 0.24 0.64 Buying price: Also called offer price. The price at
All Weather Fd USD Cls $ 117.51 - -1.87 0.00 Regulated which units in a unit trust are bought by investors.
Global High Yield Bond - Inst Acc $ 19.93 - -0.01 0.00
Morant Wright Funds (Ireland) PLC (IRL)
S W Mitchell European Fund Class A EUR € 334.37 - 23.63 -
Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 1143.21 - -1.50 0.00 Includes manager’s initial charge.
All Weather Fd EUR Cls € 105.60 - -1.73 0.00 Veritas Global Focus Fund A GBP £ 27.87 - 0.23 0.37
FCA Recognised
Global Investment Grade Credit - Inst Income $ 12.14 - 0.00 3.65 Single price: Based on a mid-market valuation of the
Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1345.78 - -1.68 0.00
Morant Wright Fuji Yield EUR Acc Hedged € 11.68 - 0.07 - S W Mitchell Small Cap European Fund Class A EUR € 233.97 - 4.05 - Veritas Global Focus Fund A EUR € 14.22 - 0.10 0.36 underlying investments. The buying and selling price
All Weather Fd GBP Cls £ 113.71 - -2.13 0.00
Pictet Asset Management (Europe) SA (LUX) Global Investment Grade Credit Fund Inst Acc € € 11.98 - 0.01 0.00 for shares of an OEIC and units of a single priced unit
15, Avenue J.F. Kennedy L-1855 Luxembourg Nippon Growth (UCITS) Fund JPY Class A shares ¥ 105605.00 - -137.00 0.00 trust are the same.
Morant Wright Fuji Yield EUR Dist Hedged € 11.50 - 0.07 - The Charlemagne Fund EUR € 323.41 - -9.82 - Veritas Global Focus Fund A USD $ 25.05 - 0.29 0.37
Tactical Opps USD Cls $ 141.99 - -8.87 0.00

Asset Management
Tel: 0041 58 323 3000 Global Investment Grade Credit Fund Inst Acc $ $ 16.60 - 0.00 0.00
Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 88553.00 - -115.00 0.00
Asset Management
FCA Recognised Treatment of manager’s periodic capital charge:
Morant Wright Fuji Yield GBP Acc Hedged £ 11.93 - 0.08 - Tactical Opps EUR Cls € 118.97 - -7.43 0.00 Veritas Global Focus Fund C GBP £ 30.25 - 0.25 0.00 The letter C denotes that the trust deducts all or part of
Pictet-Absl Rtn Fix Inc-HI EUR € 106.12 - 0.02 0.00 Global Multi-Asset - Inst Acc $ 14.60 - 0.07 0.00 the manager’s/operator’s periodic charge from capital,
S W Mitchell Capital LLP (IRL) Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00 contact the manager/operator for full details of the
Morant Wright Fuji Yield GBP Dist Hedged £ 11.60 - 0.08 - Tactical Opps GBP Cls £ 133.63 - -8.30 0.00 Veritas Global Focus Fund C EUR € 25.69 - 0.19 0.00
Regulated effect of this course of action.
Pictet-Absl Rtn Glo Div-I EUR F € 123.44 - 0.23 0.00 Global Real Return - Inst Acc $ 17.88 - 0.04 0.00
Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 57313.00 - -74.00 0.00
Morant Wright Fuji Yield USD Acc Hedged $ 11.60 - 0.08 - SWMC European Fund B EUR € 15544.08 - -104.80 0.00 Veritas Global Focus Fund C USD $ 27.27 - 0.33 0.00 Exit Charges: The letter E denotes that an exit charge
Pictet-Agriculture-I EUR F € 191.00 - 2.49 0.00 Income Fund Inst Acc $ 12.40 - 0.02 0.00 may be made when you sell units, contact the
Strategic China Panda Fund USD $ 2229.48 - 15.90 0.00
Morant Wright Fuji Yield USD Dist Hedged $ 11.63 - 0.08 - SWMC UK Fund B £ 11544.90 - 4.27 0.00 Veritas Global Equity Income Fund A GBP £ 142.32 - 2.76 4.21 manager/operator for full details.
Pictet-Asian Equities Ex Japan-I USD F $ 205.91 - 3.38 0.00 Inflation Strategy Fund Inst Acc $ 8.78 - 0.01 0.00
Strategic China Panda Fund Hedged EURO € 2172.60 - 16.61 0.00
Morant Wright Fuji Yield YEN Acc ¥ 1196.10 - 7.82 - SWMC Small Cap European Fund B EUR € 13528.31 - -44.72 0.00 Veritas Global Equity Income Fund A EUR € 205.05 - 3.76 4.11 Time: Some funds give information about the timing of
Low Average Duration - Inst Acc $ 14.80 - 0.00 0.00 price quotes. The time shown alongside the fund
Pictet-Asian Local Currency Debt-I USD F $ 151.03 - 0.75 0.00 Strategic China Panda Fund Hedged Sterling £ 2201.36 - 16.36 0.00 manager’s/operator’s name is the valuation point for
Morant Wright Fuji Yield B YEN Acc ¥ 1056.98 - 6.92 - SWMC Emerging European Fund B EUR € 9455.79 - 7.97 0.00 Veritas Global Equity Income Fund A USD $ 112.31 - 2.57 4.14 their unit trusts/OEICs, unless another time is indicated
Pictet-Biotech-I USD F $ 858.80 - 23.46 0.00 PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 8.52 - 0.04 0.00 by the symbol alongside the individual unit trust/OEIC
Strategic Euro Bond Accumulating Class CHFSFr 985.98 - -0.48 0.00 name.
Morant Wright Fuji Yield YEN Dist ¥ 1171.29 - 7.66 - Northwest Investment Management (HK) Ltd Veritas Global Equity Income Fund C GBP £ 171.02 - 3.32 -
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Pictet-Brazil Index I USD $ 39.07 - 0.41 0.00 PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 11.00 - 0.11 0.00
Strategic Euro Bond Institutional Class EUR € 1011.84 - -0.41 0.00 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
Morant Wright Sakura Fund Sterling Acc Hedged £ 14.53 - 0.15 0.00 Other International Funds Veritas Global Equity Income Fund C EUR € 246.28 - 4.52 - 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Pictet-CHF Bonds I CHF SFr 509.17 - 0.07 0.00 PIMCO RAE Fundam.PLUS US Inst Acc $ 12.33 - 0.20 0.00 midnight. Daily dealing prices are set on the basis of
Northwest $ class $ 2382.42 - 14.15 0.00 Strategic Euro Bond Fund Accumulating Class Shares € 1134.71 - -0.47 0.00 the valuation point, a short period of time may elapse
Morant Wright Sakura Fund Euro Acc Hedged € 14.50 - 0.15 0.00 Veritas Global Equity Income Fund C USD $ 134.10 - 3.07 -
Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.73 - 0.00 0.00 before prices become available.Historic pricing: The
Pictet-China Index I USD $ 107.96 - -0.04 0.00 Strategic Euro Bond Fund Distributing Class Shares € 1024.03 - -0.42 1.33 letter H denotes that the managers/operators will
Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1480.23 - 15.03 0.00 Northwest Warrant $ class $ 1969.35 - -444.40 0.00
Veritas Global Real Return Fund A USD $ 20.04 - 0.05 0.30 normally deal on the price set at the most recent
Pictet-Clean Energy-I USD F $ 79.45 - 0.83 0.00 StocksPLUS{TM} - Inst Acc $ 23.44 - 0.34 0.00 valuation. The prices shown are the latest available
Strategic European Smaller Companies Fund EUR Class € 956.34 - -18.53 -
Morant Wright Sakura Fund Dollar Acc Hedged $ 14.45 - 0.15 0.00 RobecoSAM (LUX) Veritas Global Real Return Fund A GBP £ 11.22 - 0.03 0.33
before publication and may not be the current dealing
levels because of an intervening portfolio revaluation or
Total Return Bond - Inst Acc $ 27.05 - 0.01 0.00 Tel. +41 44 653 10 10 http://www.robecosam.com/
Pictet-Digital Communication-I USD F $ 263.10 - 3.01 0.00 Strategic Global Bond RMB Acc $ 1063.46 - -0.91 0.00 a switch to a forward pricing basis. The
Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 14.38 - 0.15 0.00 Regulated Veritas Global Real Return Fund A EUR € 11.83 - 0.03 0.12 managers/operators must deal at a forward price on
UK Corporate Bond - Inst Acc £ 17.18 - 0.06 0.00 request, and may move to forward pricing at any time.
Pictet-Eastern Europe-I EUR F € 290.07 - 1.73 0.00 RobecoSAM Sm.Energy/A £ 10.90 - 0.16 1.32 Strategic Global Bond USD Acc $ 1040.20 - 0.15 0.00 Forward pricing: The letter F denotes that that
Retail
managers/operators deal at the price to be set at the
Pictet-Em Lcl Ccy Dbt-I USD F $ 154.97 - 0.05 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 18.98 - 0.11 0.00 next valuation.
RobecoSAM Sm.Energy/N € 11.79 - 0.18 0.00 Strategic US Momentum and Value Fund $ 788.25 - 16.10 0.00 Veritas Asian Fund B USD $ 219.30 - 3.32 0.00

Pictet-Emerging Markets-I USD F $ 479.99 - 6.59 0.00 UK Low Duration - Inst Acc £ 14.05 - 0.01 0.00 Investors can be given no definite price in advance of
RobecoSAM Sm.Materials/A £ 120.94 - 0.66 2.05 Strategic US Momentum & Value Fund USD I Class $ 523.27 - 10.68 0.00 Veritas Asian Fund B GBP £ 281.36 - 3.71 0.00
Oasis Crescent Management Company Ltd the purchase or sale being carried out. The prices
appearing in the newspaper are the most recent
Other International Funds UK Real Return - Inst Acc £ 22.52 - 0.07 0.00
Pictet-Emerging Markets Index-I USD F $ 213.71 - -0.33 0.00 RobecoSAM Sm.Materials/N € 148.73 - 0.80 0.00 Strategic US Momentum and Value EUR Hedged Class EUR € 550.33 - 11.23 0.00 Veritas Asian Fund B EUR € 245.71 - 2.86 0.00 provided by the managers/operators. Scheme
particulars, prospectus, key features and reports: The
Oasis Crescent Equity Fund R 9.32 - 0.06 0.00 most recent particulars and documents may be obtained
Pictet-Emerging Corporate Bonds I USD $ 106.69 - 0.11 0.00 UK Sterling Long Average Duration - Inst Acc £ 21.33 - 0.15 0.00
RobecoSAM Sm.Materials/Na € 102.63 - 0.55 - Strategic US Momentum and Value CHF Hedged Class CHFSFr 547.59 - 11.23 0.00 Veritas China Fund B GBP £ 142.64 - 1.45 0.00 free of charge from fund managers/operators. *
Morgan Stanley Investment Funds (LUX) Indicates funds which do not price on Fridays.
6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61 Pictet-Emerging Markets High Dividend I USD $ 94.80 - 1.31 0.00 Unconstrained Bond - Inst Acc $ 11.92 - 0.01 0.00
RobecoSAM Gl.Small Cap Eq/A £ 76.16 - 0.77 1.77 Veritas China Fund B EUR € 163.91 - 1.09 0.00
www.morganstanleyinvestmentfunds.com Oasis Global Mgmt Co (Ireland) Ltd (IRL) Charges for this advertising service are based on the
FCA Recognised Regulated Pictet-Emerging Markets Sust Eq I USD $ 83.70 - -0.28 0.00 US High Yield Bond Fund Inst Acc $ 27.46 - -0.02 0.00 The Hartford International Funds (IRL) number of lines published and the classification of the
RobecoSAM Gl.Small Cap Eq/N € 162.20 - 1.62 0.00 Veritas Global Focus Fund B USD $ 18.10 - 0.21 0.00
Oasis Global Investment (Ireland) Plc Regulated fund. Please contact data@ft.com or call
US Advantage A F $ 59.50 - 0.91 0.00 +44 (0)20 7873 3132 for further information.
Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.00 0.71 Pictet-Environmental Megatrend Sel I EUR € 166.49 - 1.70 0.00 RobecoSAM Sustainable Gl.Eq/B € 187.71 - 1.65 0.00 Gbl Govt Bond (Ex Japan) Index (GBP) £ 1564.64 - 2.02 0.00 Veritas Global Focus Fund B GBP £ 21.31 - 0.18 0.00
Asian Equity A F $ 41.36 - 0.48 0.00
Oasis Global Equity $ 27.04 - 0.20 0.22 Pictet-EUR Bonds-I F € 557.75 - 1.91 0.00 RobecoSAM Sustainable Gl.Eq/N € 161.91 - 1.42 0.00 UK Corporate Bond £ 1566.78 - 3.64 0.00 Veritas Global Focus Fund B EUR € 16.95 - 0.12 0.00
Asian Property A F $ 17.70 - 0.13 0.00
Oasis Crescent Global Investment Fund (Ireland) plc Pictet-EUR Corporate Bonds Ex Fin i EUR € 143.45 - 0.13 0.00 RobecoSAM S.HealthyLiv/B € 177.99 - 2.12 0.00 Gilt £ 1572.30 - 0.79 0.00 Veritas Global Equity Income Fund B GBP £ 130.94 - 2.53 4.23
Asian Property AX F £ 10.68 - 0.03 0.52 Oasis Crescent Global Equity Fund $ 27.55 - 0.20 0.00
Pictet-EUR Corporate Bonds-I F € 199.80 - 0.67 0.00 RobecoSAM S.HealthyLiv/N € 165.77 - 1.98 0.00 Global Eq (Ex Japan) Index Fund ¥ 1.40 - 0.02 0.00 Veritas Global Equity Income Fund B EUR € 188.20 - 3.45 4.12
Diversified Alpha Plus A F € 29.89 - 0.05 0.00 Oasis Crescent Variable Balanced Fund £ 10.30 - 0.00 0.58
Pictet-EUR Government Bonds I EUR € 158.85 - 0.47 0.00 Platinum Capital Management Ltd RobecoSAM S.HealthyLiv/Na £ 101.23 - 1.21 - Veritas Global Equity Income Fund B USD $ 111.36 - 2.54 4.16
Global Eq (ex Japan) Class HJ4 ¥ 1.45 - 0.01 0.00
Other International Funds
Emerg Europ, Mid-East & Africa Eq A F € 71.19 - 0.66 0.00 OasisCresGl Income Class A $ 10.87 - 0.00 2.35
Pictet-EUR High Yield-I F € 242.98 - 0.26 0.00 RobecoSAM S.Water/A £ 165.64 - 1.20 2.27 Global Eq (ex Japan) Class JP5 ¥ 1.60 - 0.02 0.00 Veritas Global Real Return Fund B USD $ 19.46 - 0.06 0.00
Platinum All Star Fund - A (Est) $ 117.96 - - -
Emerging Markets Debt A F $ 75.68 - 0.03 0.00 OasisCresGl LowBal D ($) Dist $ 11.74 - 0.04 0.00
Pictet-EUR Short Mid-Term Bonds-I F € 136.96 - 0.01 0.00 RobecoSAM S.Water/N € 170.21 - 1.22 0.00 Global Eq Ex Japan Index Fund (Hedge) ¥ 1.46 - 0.01 0.00 Veritas Global Real Return Fund B GBP £ 11.02 - 0.03 0.00
Platinum Global Dividend Fund - A (Est) $ 57.18 - - -
Emerging Markets Domestic Debt AX F £ 10.29 - 0.04 5.41 OasisCresGl Med Eq Bal A ($) Dist $ 11.94 - 0.05 0.32
Pictet-EUR Short Term HY I EUR € 119.91 - 0.08 0.00 Gbl Govt Bond (Ex Japan) Index ¥ 1.35 - 0.01 0.00 Veritas Global Real Return Fund B EUR € 12.65 - 0.03 0.00
Platinum Global Dividend UCITS Fund $ 68.16 - 0.67 5.13
Emerging Markets Equity A F $ 33.69 - 0.39 0.00 Oasis Crescent Gbl Property Eqty $ 9.36 - 0.03 2.00
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.99 - 0.00 0.00 Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.32 - 0.00 0.00
Platinum Essential Resources UCITs Fund $ 5.27 - -0.01 0.00
Euro Bond A F € 15.79 - 0.04 0.00
Pictet-Euroland Index IS EUR € 136.90 - -0.53 0.00
Veritas Asset Management LLP
Platinum Maverick Enhanced Fund Limited (Est) $ 95.79 - - 0.00 Japan Equity Index Fund ¥ 1.10 - 0.01 0.00 www.veritas-asset.com
Euro Corporate Bond AX F £ 20.92 - 0.01 1.53
Other International Funds
Pictet-Europe Index-I EUR F € 176.36 - -0.20 0.00 Japan Equity Class JP3 ¥ 1.34 - 0.01 0.00
Euro Strategic Bond A F € 43.63 - 0.11 0.00 Real Return Asian Fund USD (Est) € 281.21 - -1.94 0.00
Pictet-European Equity Selection-I EUR F € 651.65 - 3.57 0.00 Schroder Property Managers (Jersey) Ltd
European Currencies High Yield Bd A F € 21.80 - 0.03 0.00 Other International Funds Real Return Asian Fund GBP (Est) £ 300.43 - -1.99 0.00
Pictet-European Sust Eq-I EUR F € 251.03 - -1.09 0.00 The National Investor (TNI)
Indirect Real Estate SIRE £ 133.22 139.31 0.83 2.34 www.tni.ae
European Equity Alpha A F € 44.85 - 0.39 0.00 Real Return Asian Fund EUR (Est) $ 296.71 - -1.93 0.00
Odey Asset Management LLP (CYM)
Pictet-Global Bds Fundamental I USD $ 115.24 - -0.04 0.00 Other International Funds
Regulated
European Property A F € 36.99 - 0.34 0.00 TNI Blue Chip UAE Fund * AED 9.72 - -0.03 0.00
OEI Mac Inc GBP A £ 362.17 - 14.98 0.00 Pictet-Global Bonds-I EUR € 165.60 - 0.00 0.00 SIA (SIA Funds AG) (LUX)
Polar Capital Funds Plc (IRL)
Waverton Investment Funds Plc (1600)F (IRL)
Eurozone Equity Alpha A F € 12.02 - 0.14 0.00 Regulated TNI Funds Ltd (BMU)
Regulated waverton.investments@citi.com
OEI Mac Inc GBP B £ 197.72 - 8.75 0.00 Pictet-Global Emerging Currencies-I USD F $ 96.30 - -0.13 0.00
Asian Financials I USD $ 279.70 279.70 2.64 0.00 LTIF Classic € 344.67 - 2.43 0.00 MENA Hedge Fund $ 945.66 - 2.84 0.00 FCA Recognised
Global Bond A F $ 38.19 - 0.15 0.00
OEI MAC Inc USD $ 1933.42 - 78.16 0.00 Pictet-Global Emerging Debt-I USD F $ 357.62 - 0.42 0.00 TNI Funds Plc (Ireland) Waverton Asia Pacific A USD $ 17.40 - 0.22 5.08
Biotechnology I USD $ 18.34 18.34 0.39 0.00 LTIF Natural Resources € 73.01 - 0.95 0.00
Global Brands A F $ 100.66 - 1.45 0.00
Odey European Inc EUR € 842.77 - 31.53 0.00 Pictet-Global Megatrend Selection-I USD F $ 224.18 - 2.55 0.00 MENA UCITS Fund * $ 1094.98 - -3.73 0.00
Waverton Global Bond Fund Cls A $ 8.78 - 0.01 5.47
European Income Acc EUR € 11.94 11.94 0.01 0.00 LTIF Stability A ACCU € 167.32 - -0.13 -
Global Convertible Bond A F $ 43.02 - 0.17 0.00
Odey European Inc GBP A £ 323.71 - 12.01 0.00 Pictet-Greater China-I USD F $ 452.57 - 6.53 0.00 Waverton Global Equity Fund A GBP £ 13.66 - 0.14 0.59
Global Property A F $ 27.86 - 0.28 0.00 European Ex UK Inc EUR Acc € 10.15 10.15 0.00 -
Odey European Inc GBP B £ 183.69 - 6.82 0.00 Pictet-Health-I USD $ 276.21 - 5.12 0.00 SIA (SIA Funds AG) (CH) Waverton UK Fund A GBP £ 13.39 - 0.11 1.88
Indian Equity A F $ 34.38 - 0.43 0.00 Financial Opps I USD $ 12.49 - 0.04 2.11
Other International Fds
Odey European Inc USD $ 388.19 - 14.14 0.00 Pictet-High Dividend Sel I EUR F € 160.69 - 0.80 0.00 Waverton Equity Fund A GBP £ 14.62 - 0.07 0.19
Latin American Equity A F $ 39.61 - 0.48 0.00 GEM Growth I USD $ 8.53 - -0.01 0.00 LTIF Stability Growth SFr 196.40 - -1.30 -
Giano Capital EUR Inc € 4453.26 - 0.00 0.00 Pictet-India Index I USD $ 92.58 - -1.53 0.00 Waverton Sterling Bond Fund A GBP £ 9.45 - 0.01 5.36
Short Maturity Euro Bond A F € 20.38 - 0.00 0.00 GEM Income I USD $ 9.46 - 0.00 0.00 LTIF Stability Inc Plus SFr 174.50 - -1.20 5.86
Pictet-Indian Equities-I USD F $ 439.15 - 6.03 0.00 Toscafund Asset Management LLP (UK)
Global Alpha I USD $ 12.88 12.88 0.11 0.00 www.toscafund.com
US Dollar Liquidity A F $ 13.03 - 0.00 0.00 Odey Asset Management LLP (IRL)
Pictet-Japan Index-I JPY F ¥ 16944.41 - 147.48 0.00 Authorised Funds WA Fixed Income Fund Plc (IRL)
FCA Recognised Standard Life Wealth (JER) Regulated
US Growth A F $ 69.35 - 1.40 0.00 Global Convertible I USD $ 11.43 11.43 0.01 0.00 Aptus Global Financials B Acc £ 3.15 - 0.00 4.59
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
Odey Pan European EUR R € 354.87 - -0.15 0.00 Pictet-Japanese Equities Opp-I JPY F ¥ 10168.14 - 96.99 0.00 European Multi-Sector € 117.93 - 0.34 0.00
FCA Recognised
US Growth AH F € 48.08 - 0.97 0.00 Global Insurance I GBP £ 4.14 - 0.05 0.00 Aptus Global Financials B Inc £ 2.79 - 0.00 4.59
Standard Life Offshore Strategy Fund Limited
Odey Allegra European EUR O € 265.36 - -1.01 0.00 Pictet-Japanese Equity Selection-I JPY F ¥ 15206.15 - 131.76 0.00
US Growth AX F £ 45.36 - 0.71 0.00 Global Technology I USD $ 23.84 - 0.39 0.00 Bridge Fund £ 1.6321 - 0.0153 1.97
Odey Allegra International EUR O € 182.63 - -0.01 0.00 Pictet-LATAM Index I USD $ 51.72 - 0.49 0.00
Healthcare Blue Chip Fund I USD Acc $ 10.68 10.68 0.16 0.00 Diversified Assets Fund £ 1.1810 - 0.0052 3.01 Toscafund Asset Management LLP (CYM)
US Property A F $ 67.56 - 0.70 0.00
Odey Allegra Developed Markets USD I $ 133.32 - 0.79 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 109.12 - 0.26 0.00 www.toscafund.com
Healthcare Opps I USD $ 38.59 - 0.51 0.00 Global Equity Fund £ 1.9028 - 0.0232 1.03 Regulated
Odey European Focus Fund € 18.07 - -0.05 0.49 Pictet-Pacific Ex Japan Index-I USD F $ 318.16 - -1.46 0.00 Tosca A USD (Est) $ 302.50 - 5.17 0.00
Morgens Waterfall Vintiadis.co Inc Income Opportunities B2 I GBP Acc £ 1.72 1.72 0.00 0.00 Global Balanced Fund - Income Units £ 1.3523 - 0.0101 1.86
Other International Funds Odey Atlas Fund GBP I S £ 1.15 - 0.00 0.00 Pictet-Premium Brands-I EUR F € 158.95 - 0.78 0.00 Tosca Mid Cap GBP £ 259.26 - 0.54 0.00 Yuki International Limited (IRL)
Japan Alpha I JPY ¥ 220.36 220.36 2.28 0.00 Global Balanced Fund - Accumulations Units £ 1.5695 - 0.0116 1.83 Tel +44-20-7269-0207 www.yukifunds.com
Phaeton Intl (BVI) Ltd (Est) $ 404.39 - -6.80 0.00
Odey Giano European Fund EUR R € 117.26 - -0.10 0.00 Pictet-Quality Global Equities I USD $ 135.11 - 1.63 0.00 Tosca Opportunity B USD $ 357.47 - 5.56 0.00 Regulated
Japan I JPY ¥ 2197.99 - 16.62 0.00 Global Fixed Interest Fund £ 0.9941 - -0.0001 4.89 Yuki Mizuho Umbrella Fund
Odey Naver Fund EUR I € 128.17 - -0.14 0.00 Pictet-Russia Index I USD $ 52.79 - 0.90 0.00
North American I USD $ 17.92 17.92 0.28 0.00 Sterling Fixed Interest Fund £ 0.8414 - 0.0013 4.18 Yuki Mizuho Japan Dynamic Growth ¥ 7157.00 - 47.00 0.00
Odey Odyssey USD I $ 151.97 - -0.08 0.00 Pictet-Russian Equities-I USD F $ 45.40 - 0.64 0.00
UK Absolute Equity I GBP £ 12.68 12.68 0.00 0.00 UK Equity Fund £ 1.9401 - 0.0232 2.68 Yuki Mizuho Japan Large Cap ¥ 3911.00 - -3229.00 0.00
Odey Orion Fund EUR I € 123.06 - 0.41 0.00 Pictet-Security-I USD F $ 201.29 - 1.55 0.00
Yuki Japan Low Price ¥ 26781.00 - 109.00 0.00
Odey Swan Fund EUR I € 92.89 - -0.91 0.00 Pictet-Select-Callisto I EUR € 106.08 - -0.42 0.00
Polar Capital LLP (CYM)
Yuki Japan Value Select ¥ 12653.00 - 24.00 0.00
Natixis International Funds (Lux) I SICAV (LUX) Regulated
Odey European Absolute Return GBP S £ 97.67 - -0.55 0.00 Pictet-Small Cap Europe-I EUR F € 1148.79 - -3.97 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 YMR Umbrella Fund
ALVA Convertible A USD $ 128.85 - 0.86 0.00
FCA Recognised
Pictet-ST.MoneyMkt-I € 140.48 - 0.01 0.00 YMR N Growth ¥ 17589.00 - 116.00 0.00
Harris Global Equity R/A (USD) $ 263.06 263.06 2.71 0.00 European Conviction A EUR € 139.75 - -3.36 0.00
Odey Wealth Management (CI) Ltd (IRL) TreeTop Asset Management S.A. (LUX) Yuki Asia Umbrella Fund
Pictet-ST.MoneyMkt JPY I USD ¥ 101517.48 - -5.50 0.00
www.odey.com/prices Regulated
Harris US Equity Fund R/A (USD) $ 214.01 214.01 3.67 0.00 European Forager A EUR € 174.69 - -3.67 0.00 Stenham Asset Management Inc Yuki Japan Rebounding Growth Fund JPY Class ¥ 23764.00 - 154.00 0.00
FCA Recognised
Pictet-ST.MoneyMkt-ICHF SFr 124.34 - 0.00 0.00 www.stenhamassetmanagement.com TreeTop Convertible Sicav
Harris Concentrated US Equity R/A (USD) $ 162.74 162.74 3.33 0.00 Odey Opportunity EUR I € 227.59 - 1.75 0.00 Other International Funds Yuki Japan Rebounding Growth Fund USD Hedged Class $ 947.09 - 6.09 -
International A € 307.24 - 2.05 0.00
Pictet-ST.MoneyMkt-IUSD $ 135.18 - 0.00 0.00
Polunin Capital Partners Ltd Stenham Asia USD $ 130.04 - 6.40 -
Loomis Sayles Strategic Alpha R/A (USD) $ 110.59 110.59 -0.03 -
Other International Funds International B $ 393.15 - 2.61 0.00
Pictet-Timber-I USD F $ 152.27 - 2.54 0.00
Omnia Fund Ltd Stenham Credit Opportunities A Class USD $ 102.06 - -0.68 0.00 Zadig Gestion (Memnon Fund) (LUX)
Emerging Markets Active $ 40.93 - -0.92 -
Other International Funds International C £ 132.33 - 0.89 0.00 FCA Recognised
Natixis International Funds (Dublin) I plc (IRL) Pictet Total Ret-Agora I EUR € 115.67 - -0.12 0.00
Luxcellence Em Mkts Tech $ 892.96 - -23.26 0.00 Stenham Equity UCITS USD $ 143.33 - 0.49 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Estimated NAV $ 838.81 - 21.56 0.00 International D € 285.16 - 1.90 2.96 Memnon European Fund I GBP £ 111.22 - 0.29 0.00
Regulated Pictet Total Ret-Corto Europe I EUR € 136.41 - -0.24 0.00
Polunin Developing Countries $ 728.64 734.83 -1.92 0.00 Stenham Growth USD $ 214.90 - 3.75 - TreeTop Global Sicav
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.26 12.26 0.00 1.19 Pictet Total Ret-Divers Alpha I EUR € 104.80 - 0.12 0.00
Polunin Discovery - Frontier Markets $ 1386.75 - -14.50 0.00 Stenham Healthcare USD $ 180.64 - 0.66 0.00 Global Opp.A € 144.66 - 2.10 0.00 Zebedee Capital Partners LLP (CYM)
Loomis Sayles High Income R/D (USD) $ 8.45 8.45 0.01 14.41 Regulated
Pictet Total Ret-Kosmos I EUR € 109.07 - 0.04 0.00
Stenham Managed Fund USD $ 113.66 - 1.13 - Global Opp.B $ 141.39 - 1.96 0.00
Polunin Small Cap $ 1363.81 1380.86 -27.34 0.00 Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
Loomis Sayles Multisector Income R/D (GBP) $ 12.21 12.21 0.01 5.68 Pictet Total Ret-Mandarin I USD $ 113.92 - -0.50 0.00
Stenham Macro UCITS USD $ 102.37 - 0.20 - Global Opp.C £ 178.13 - 2.54 0.00
Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Pictet-US Equity Selection-I USD $ 192.81 - 3.63 0.00
Private Fund Mgrs (Guernsey) Ltd (GSY) Stenham Multi Strategy USD $ 116.22 - -0.84 - Sequoia Equity A € 147.65 - 2.26 0.00
Optima Fund Management Regulated
Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Other International Funds Pictet-US High Yield-I USD F $ 145.71 - -0.02 0.00
Stenham Quadrant USD A $ 394.26 - -1.46 - Sequoia Equity B $ 150.09 - 2.14 0.00
Monument Growth 17/11/2015 £ 489.47 494.98 -1.03 1.00
Cuttyhunk Fund II Limited $ 1549.16 - -5.02 0.00 Pictet-USA Index-I USD F $ 183.92 - 2.93 0.00
Stenham Trading Inc USD $ 114.29 - -0.38 - Sequoia Equity C £ 169.16 - 2.49 0.00
JENOP Global Healthcare Fund Ltd $ 14.71 - 0.01 0.00 Pictet-USD Government Bonds-I F $ 632.00 - -0.23 0.00
Prusik Investment Management LLP (IRL)
Data Provided by
Stenham Universal USD $ 431.83 - -0.28 -
Enquiries - 0207 493 1331
New Capital Fund Management Ltd (IRL) OPTIKA Fund Limited - Cl A $ 104.52 - -0.84 - Pictet-USD Short Mid-Term Bonds-I F $ 129.56 - -0.04 0.00 Unicapital Investments (LUX)
Regulated Stenham Universal II USD $ 160.04 - -0.18 0.00
Leconfield House, Curzon Street, London, W1J 5JB Regulated
FCA Recognised Optima Fd NAV $ 90.37 - 0.16 0.00 Pictet-USD Sov.ST.Mon.Mkt-I $ 102.60 - 0.00 0.00 Prusik Asian Equity Income B Dist $ 159.68 - 1.54 3.75
New Capital UCITS Funds Investments III € 5.03 - -22.38 -
Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00 Pictet-Water-I EUR F € 291.33 - 2.52 0.00 Prusik Asia A $ 197.11 - 2.85 0.00
Asia Pac Bd USD Inst Inc $ 92.45 - 0.03 3.25 Stratton Street Capital (CI) Limited (GSY)
Investments IV - European Private Eq. € 247.75 260.13 -44.58 -
Regulated
The Dorset Energy Fd Ltd NAV (Est) $ 28.41 - -2.05 0.00 Prusik Asian Smaller Cos A $ 141.70 - 1.21 0.00
Asia Pac Bd USD Ord Inc $ 94.26 - 0.04 2.52 Investments IV - Global Private Eq. € 366.42 384.74 -49.81 -
Platinum Fd Ltd $ 87.75 - 0.60 0.00
Japan Synthetic Warrant Yen Class ¥ 1906.06 - 117.12 0.00
www.morningstar.co.uk
Asia Pac Eq EUR Ord Inc € 86.77 - -0.15 3.28 Japan Synthetic Warrant GBP Hedged Class £ 198.78 - 36.88 0.00 Data as shown is for information purposes only. No
Platinum Fd Ltd EUR € 17.06 - 0.12 0.00 Purisima Investment Fds (CI) Ltd (JER)
offer is made by Morningstar or this publication.
Asia Pac Eq GBP Ord Inc £ 90.02 - -0.15 3.72 Regulated Value Partners Hong Kong Limited (IRL)
Japan Synthetic Warrant USD Class $ 20.20 - 1.13 0.00 www.valuepartners.net, fis@vp.com.hk
Platinum Japan Fd Ltd $ 53.47 - -0.18 0.00 PCG B 169.43 - 0.34 0.00 Regulated
Asia Pac Eq USD Ord Inc $ 90.56 - -0.14 3.11 Japan Synthetic Warrant USD Hedged Class $ 197.94 - 36.59 0.00
Value Partners Asia ex-Japan Equity Fund $ 8.81 - -0.03 -
22 ★ FINANCIAL TIMES Friday 20 November 2015

MARKETS & INVESTING

Commodities
Capital markets

Credit spreads a less reliable

gauge on risk in age of QE
The yield premium on US
high-yield bonds has been
moving up steadily this
year ahead of a possible
Federal Reserve interest
rate rise, and as falling
commodity prices put
pressure on miners and
oil companies, writes
Gavin Jackson.
Investors use credit
spreads — the percentage-
point difference in yields
between junk bonds and
investment-grade
corporate or Treasury
bonds — to indicate the
overall creditworthiness
of the private sector.
A deterioration in
companies’ ability to
service their debt is likely
to be felt first among
junk-rated businesses.
What are credit spreads?
A credit spread is a risk
premium that can be used
as a barometer of the
health of an underlying
corporate balance sheet.
The higher the risk of
default by a company, as
judged by rating agencies,
the more it has to pay
lenders when it sells debt.
On corporate debt the
yield, which varies with the
price in the secondary
market, is set partly in
relation to the yield on
government bonds —
often described as the
“risk-free rate”.
It is also set partly on
the premium, or spread,
investors demand based
on company-specific risk.
To calculate the credit
spread an investor earns
for taking the risk of losing
money if a company goes
bust, compare the yield
on a corporate bond with
a government bond.
For example, Vodafone
has a bond maturing in
2020 that pays investors a
fixed 1 per cent coupon.
The bond trades at 101
cents on the dollar and
yields 0.72 per cent.
A German government
bond of similar maturity
yields minus 0.17 per cent.
So the Vodafone bond’s
spread is 89 basis points.
Where does junk come in?
There are two main
categories of corporate
debt: investment-grade
and high-yield, or junk.
Gradations in the
categories denote the
likelihood of default, as
judged by rating agencies.
Any bond rated below
BB by Standard & Poor’s
or Ba by Moody’s falls into
the junk category.
Credit spreads tend to
widen the further down the
US junk bond credit spreads
Per cent
1999 01 03 05
BofA Merrill Lynch US high yield master II option-adjusted spread
Source: FRED
ratings ladder a bond falls.
Government bonds are
often given the safest AAA
rating, followed by big
blue-chip companies.
Highly indebted private
equity companies and
small shale gas drillers
tend to have ratings
among the lowest. Junk is
the riskiest bond class.
And, over the past year,
the average US junk bond
spread — over equivalent
maturity US Treasury
yields — has risen from
441bp to 590bp, having
peaked at 650bp in
October, according to
Barclays.
What sorts of risk do
investors face?
The first is default risk,
when the company goes
bust and lenders end up
negotiating how much of
their money they get back.
Credit spread risk comes
in when there is a change
in a company’s perceived
credit risk. For example, it
could take on too much
debt in an acquisition
spree or be downgraded.
A macroeconomic shock
such as lower oil prices
might affect a range of
companies negatively. In
these cases spreads are
said to “widen”, with yields
rising and prices falling.
Finally there could be a
change in the market.
Because credit spreads
reflect an assessment of
risk, a change in the
broader attitude to risk
taking can be damaging.
What about when
interest rates go up?
In the past investors in
junk bonds were better off
than those holding
investment-grade bonds
when rates rose. The size
of the credit spread
provides a bigger cushion
to absorb changes in rates.
Central banks generally
raise rates when the
economy is growing, not at
times when large numbers
of companies are likely to
struggle to pay lenders.
But this year’s rise in
credit spreads is possibly
not the most accurate
gauge of corporate credit
risk. Quantitative easing
has pushed yields on
government debt to low
levels, and into negative
territory in Europe.
The response has been a
search for yield, pushing
down borrowing costs for
all sorts of bond issuers. If
this represents an excess
of risk taking then the
uptick this year may not
tell the whole story.
20
15
10
5 assumption”, with EM earnings having
0 millennium by high commodity prices
07 09 11 13 15
Goldman sees more raw materials pain
Bank issues bearish
outlook amid lows for oil,
coal, copper and zinc
NEIL HUME AND DAVID SHEPPARD
Natural resources prices have not bot-
tomed and could fall further unless
demand improves or more supply is
curtailed, according to Goldman Sachs,
one of the most influential banks in
commodity markets.
With oil, copper, coal and zinc trading
around their lowest levels since the
financial crisis, some investors have said
prices may have troughed and could
recover in the next 12 months.
Production cuts from miners such as
Glencore, which plans to reduce annual
production of zinc by a third, have given
further grounds for optimism.
Caution reigns as EM valuations hit new low
Analysts are wary of calling a
market bottom as economic
headwinds chill sentiment
STEVE JOHNSON
The sell-off in emerging market equities
has pushed valuations to an all-time
low, by one measure at least, reflecting
the marked underperformance of the
asset class since the immediate after-
math of the global financial crisis.
EM equities have delivered a total
return of minus 2.1 per cent since the
start of 2010, compared with a 69.1 per
cent return for developed markets.
Despite this potential buy signal, ana-
lysts are not queueing up to argue that
EM equities are wildly undervalued.
“The latest leg of correction leaves
emerging markets as the unambigu-
ously cheap segment of global equity on
a fundamental basis [but], with the
exception of Russia, valuations simply
haven’t become cheap enough,” says
George Iwanicki, EM macro strategist at
JPMorgan Asset Management.
The MSCI Emerging Markets index
fell to a valuation of just 12.8 times
10-year average earnings at the end of
September, according to JPMorgan cal-
culations, taking it below the previous
nadir of 13.5 times during the 1997-98
Asian financial crises.
The cyclically adjusted price/earnings
multiple is barely half its long-term
average of 25 times average 10-year
earnings.
In contrast, the US S&P 500 index is
trading at 23.4 times cyclically adjusted
earnings, within a whisker of its
long-term average of 23.6. The MSCI
Europe index is at 15.1, against an aver-
age of 20.6.
Alex Wolf, EM economist at Standard
Life Investments, says: “EM equities
have underperformed developed mar-
kets for some time. The late 1990s was
the last time they underperformed by as
much. However, that does not mean we
will see a sharp rebound.”
The lowly valuation of EM stocks sug-
gests investors believe corporate earn-
ings over the coming decade will be
lower than in the past 10 years.
Mr Wolf says this is a “pretty safe
been elevated for much of the current
and rapid growth in both China and glo-
bal trade.
However, Mr Iwanicki is not con-
vinced this will prove the case. With the
past decade having encompassed the
But unless demand picked up, Gold- 2016 global outlook, Barclays said com-
16% US crude dipped below $40 a barrel
man said, cuts would not be enough to modities would “bump along the bot- for a second day, taking prices to a fresh
balance commodity markets. Prices tom” until there was a pick-up in global This year’s fall for three-month low. “Between now and
the Bloomberg
needed to remain “lower for longer” to economic growth. Commodity index; the end of 2016, there is a growing risk
force more production offline. “Given structural negatives . . . [and] it has shed 40% that oil inventories could swell to full
“Supply adjustments to date are still large overhangs of excess production since 2009 capacity,” said the Goldman analysts.
insufficient, and demand has done too and inventory, especially in oil, it is rea- They thought the market would avert
little to offset this slow adjustment,” its sonable to expect that the price trough $39.89 a storage crisis, but if demand weakened
analysts said in a report. “This sustains may last for some time yet,” it said. Price of WTI crude or supply remained strong “the only
the need for lower prices for even In previous cycles, oil, copper, and per barrel for way to clear the excess . . . is with sharp
longer, keeping us underweight com- gold have spent much longer trading at December; the price declines”.
modities for the next 12 months.” depressed levels than so far this cycle, January contract US benchmark West Texas Interme-
fell 1% to near $41
The Bloomberg Commodity index, a according to research by the bank. diate fell to a low of $39.89 a barrel, los-
basket of 22 commodity futures fol- The cost of transporting commodities ing as much as 2 per cent in the Decem-
lowed by institutional investors, has as measured by the Baltic Dry index fell ber contract, which expires today.
fallen 16 per cent to its lowest since 2009 yesterday to its lowest in 30 years. The January contract fell 1 per cent to
and is on course for third year of losses. Iron ore fell to $45.10 a tonne, just a $1 near $41 a barrel. North Sea Brent, the
Over that period it has fallen almost above the record low it hit in June. international benchmark, lost 0.5 per
40 per cent. Copper, seen as barometer of global cent to a low of $43.70.
Abundant supplies have been behind growth, traded as low $4,573 a tonne, a Both WTI and Brent have averaged
this year’s sell-off. A strengthening US fresh six-year low, while zinc fell a fur- less than $55 a barrel this year, the low-
dollar has been another headwind. In its ther $1,502. est level in at least 10 years.
Analysis. Equities
Equity market valuations
Price-to-10-year average earnings
(cycle-adjusted valuations)
Emerging markets (MSCI EM)
US (S&P 500)
Europe (MSCI Europe)
50
40
30
20
10
1979 87 91 95 2003 11 15
Cyclically adjusted price-to-earnings multiple uses
10-year average earnings per share.
MSCI Emerging Markets
Price-to-book ratio
3.5
3.0
2.5
2.0
1.5
1.0
1995 2000 05 10 15
Sources: JPMorgan Asset Management
Thomson Reuters Datastream
Analysts are not boom and bust of the commodity super- Some are more upbeat. Dominic Mr Iwanicki is most optimistic
queuing up to cycle, aggregate earnings have possibly Rossi, global chief investment officer for about the Russian stock market, one
suggest that not been so high that they are not repli- equities at Fidelity International, says of the few where he says valuations have
EM equities cable in the next 10 years. that while the outlook for EM econo- fallen far enough to be unambiguously
are wildly Balancing this, Mr Iwanicki says that mies continues to look “precarious”, attractive.
undervalued EM equities have been cheaper before thanks to slowing growth, a likely rise in He is also upbeat on Hong Kong, Tai-
Martin O’Neill
when measured by other metrics. US interest rates and depressed com- wan and, to a lesser degree, South
The asset class is trading on a multiple modity prices, EM equities “have likely Korea, but is avoiding most Latin Amer-
of 1.43 times book value (the value discounted much of the bad news”. ican markets.
at which assets are carried on the bal- He adds: “Many investors appear to Nevertheless, EM equities will remain
ance sheet). While this is below the have thrown in the towel — in other rangebound, he says, given a triumvi-
long-run average of 1.8 times, it is above words, given up on EMs — which is the rate of economic headwinds in the
the cyclical low of 1.28, recorded in late point at which careful investors might shape of slow growth, dollar strength
August, and the all-time low of 0.94 start looking for opportunities.” and retreating commodity prices.
in August 1998. Mr Wolf sees scope for EM corporate Mr Wolf, too, is positive on Russia,
Historically, buying EM equities at earnings to rise a little from this year’s given signs of economic stabilisation, as
this valuation has often led to double- depressed levels, but even if this does well as India, Indonesia and Mexico.
digit gains in the subsequent 12-month unfold he suggests it will present only a Mr Rossi favours EMs that are com-
period, although this is far from univer- short-term tactical buying opportunity, mitted to a reform agenda, such as India
sal, and losses have been recorded in a rather than a long-term strategic one. and Mexico. “These nations will con-
handful of cases. “There are structural issues over the tinue to attract investors’ confidence
Mr Iwanicki describes a valuation of next couple of years that will keep earn- for tackling their structural problems,”
1.4 to 1.5 times book as “the top end ings growth weak,” he says, singling out he says.
of the band that has historically been the corporate sector’s high debt levels “Countries where this is not the
‘buy’ territory”. as the largest problem. case will not see any investor interest.”

Currencies Equities

Dollar rally loses pace as focus on rates shifts
MICHAEL HUNTER, ROGER BLITZ
AND KATIE MARTIN
The attention of the foreign-exchange
market has shifted from an expected
December US rate rise to uncertainty
about the pace of a tightening cycle,
creating volatility in dollar trading.
Neil Mellor, FX analyst at BNY Mellon,
said: “The interest is not when the Fed
moves, but what happens thereafter.”
After rising to a seven-month high
against the euro in the run-up to min-
utes from the Federal Reserve’s October
meeting on Wednesday, the dollar was
sold off in the morning European ses-
sion yesterday.
A similar pattern emerged after the
publication of dovish minutes from the
European Central Bank’s October meet-
ing, which, according to FX strategists,
point to looser monetary policy at the
December meeting. The euro promptly
fell 0.5 per cent against the dollar,
though it recovered to end the European
session up 0.85 per cent to $1.0750.
That left the dollar index, which
tracks the US currency against a basket
of its rivals, still shy of the psychologi-
cally important 100 mark, last touched
in March. Having reached 99.85 after
the Fed minutes, the index was down
0.75 per cent to 98.92.
With the index having risen more
than 5 per cent since mid-October, the
market had priced in monetary diver-
gence, said Mr Mellor.
“The only problem I have with this
divergence is everyone is going the same
way. If this divergence gets traction,
that’s fine. But with this absolutely dom-
inant view, there is a significant possibil-
ity of a market shock.”
Analysts expect the Fed to blend
hawkish commentary about lift-off with
a dovish tone on the cycle. “If, or when,
they lift rates in December, the Fed will
likely be very aggressive in highlighting
the idea of a very gradual pace,” said
Tom Porcelli, chief US economist at RBC
Capital Markets.
According to David Bloom at HSBC, a
shift in rates higher than expected
would add strength to the dollar. “How-
ever, if at any time next year the market
thinks the Fed may need to loosen in
2017, then the dollar will plummet,” he
said. “The risk-reward in 2016 is for a
weaker dollar.”
Nordea warned that investors could
be underestimating the potential speed
of US rate rises. Martin Enlund, analyst,
said the Fed was “trying to signal a hik-
ing path in line with half the pace” of the
cycle in 2004-06. “The market is pric-
ing in half of half.”
Square surges two-thirds from low IPO price
LESLIE HOOK — SAN FRANCISCO
Shares in Jack Dorsey’s Square soared
in the payments company’s first day of
trading, after pricing at an unexpect-
edly low level on Wednesday evening.
In early trading yesterday the shares
peaked at $14.80, almost two-thirds
higher than its $9 IPO price, which had
given a market capitalisation of $3.2bn.
By late morning, the stock was just
above $13, with a greater volume trad-
ing hands than the 27m shares issued.
Square’s advisers — led by Goldman
Sachs, Morgan Stanley and JPMorgan
Chase — had set a price range of $11 to
$13 when they began marketing, against
$15.46 in the most recent private fund-
ing round, in October 2014.
Sarah Friar, chief financial officer,
denied that the company had sold
itself short. “We have the capital we
need to execute the plans in front of
us,” she said.
Had Square priced at the top of its
pricing range, the offering would have
raised an additional $108m.
The share price jump between pricing
and opening was larger than for most US
flotations. Square opened at $11.20 yes-
terday, 24 per cent higher than its offer-
ing price. The US average this year is
13 per cent, according to Dealogic.
Mr Dorsey’s mother opened trading at
the New York Stock Exchange by tap-
ping her watch to a Square payment
reader at a flower stall on the street out-
side, which was connected to the bell
inside the exchange. The stall had been
one of Square’s earliest customers and
its name — Lilybelle — was used as the
code name for the IPO project.
The proceedings were broadcast on
Periscope, the video feed of Twitter, of
which Mr Dorsey is also chief and co-
founder. He splits his time between the
two groups.
The listing has been a harsh test of
investor appetite for lossmaking Silicon
Valley tech companies. Even at its high-
est levels the share price was below the
valuation commanded in the private
markets a year ago.
Square’s first-day pop will be seen as
vindication of Mr Dorsey’s determina-
tion to push ahead at a time when other
tech IPOs have performed poorly.
The surging price also highlights the
increasingly common practice of offer-
ing shares at a low price to generate a
first-day buzz. This benefits investors
who participate in the public offering
directly, because they see their shares
soar immediately, but it comes at a cost
for the company, which raises less
money as a result.
Friday 20 November 2015 ★ FINANCIAL TIMES 23

MARKETS & INVESTING

Global overview
TRADING POST Markets update

Jamie
Chisholm
Stocks unfazed by Fed ‘lift-off’ S&P 500 index
Change on day 0.15%

chatter as the dollar eases back

The general consensus among
analysts and investors after the latest
Federal Reserve minutes is that a
rate rise on December 16 is, all things
remaining equal, even more likely.
Yet the federal funds futures market
appears reluctant to reflect
this growing certainty. At mid-session
yesterday it was still pricing in just a
66 per cent probability of a hike.
Anthony Karydakis, chief economic
strategist at Miller Tabak, says this
presents a trading opportunity. He
places the odds of a pre-Christmas
rate rise in the 85 to 90 per cent range.
“Irrespective though of whether our
call is validated or the federal funds
futures market’s more cautious
approach turns out to be the prudent
approach, we believe that this market
is set up for a potentially sizeable
move over the next three weeks.”
This is because there are two
important events in the first week of
December that may “settle [in either
direction] the outcome of the
upcoming meeting”, he says.
On December 3 Fed chair Janet
Yellen will deliver testimony on the
economy in Congress, and the next
day the jobs report will be published.
Those wanting to bet on a rate rise
next month could go short the
December fed funds future contract
against the August 2016 contract.
The spread — currently about 40
basis points — should tighten as the
December contract falls much more
sharply than the August one, with the
latter’s pullback tempered by the Fed
having stressed that the tightening is
likely to be shallow and slow.
jamie.chisholm@ft.com
Fed funds future spread
Dec 2015 minus Aug 2016
(percentage points)
0.8
0.6
0.4
0.2
Nov 2015 Nov
2014
Source: Bloomberg
Wall Street holds gains,
European bourses rise
and euro firms on
prospects of December
Fed and ECB moves
DAVE SHELLOCK
European stocks rose and Wall Street
held the bulk of the previous session’s
strong gains even as expectations grew
that the Federal Reserve would raise
interest rates next month for the first
time in nearly a decade.
However, the dollar gave back some of
its advance as participants took profits
after the Fed’s Open Market Committee
said that a December move made it
more likely that the policy trajectory
after lift-off would be shallow.
The euro firmed even though the
minutes of the European Central Bank’s
latest policy meeting signalled that fur-
ther policy easing was a strong possibil-
ity next month.
After the Bank of Japan maintained its
pace of asset purchases, the yen also
gained ground versus the US currency.
The softer dollar helped gold snap its
downward trend but industrial com-
modity prices stayed under pressure
from persistent concerns about over-
supply and weakening demand.
By midday in New York, the S&P 500
equity index was down less than 0.1 per
cent at 2,082.6 after climbing 1.6 per
cent on Wednesday.
That left the US equity benchmark
about 2.4 per cent short of the record
intraday high of 2,134.72 reached in
May, after a near-10 per cent rally from
the end of September.
Across the Atlantic, the FTSE
Eurofirst 300 rose 0.4 per cent to
1,502.33, more than recovering the pre-
vious day’s slip but ending well short of
an earlier three-month peak of 1,513.65.
The firmer tone of the yen failed
Fed signals dovish rate rise: FT.com/video
John Authers says markets remain calm as expectations of a
December rate rise were bolstered by the latest Fed minutes
to rein in Japanese equities, and the
Nikkei 225 rose 1.1 per cent to a three-
month high.
Wednesday’s hefty rally for US stocks
came after the minutes of the Fed’s
October meeting offered further signals
that the US central bank was preparing
to raise official borrowing costs at its
meeting on December 15-16, barring
“unanticipated shocks”.
Hans Mikkelsen, credit strategist at
BofA-Merrill Lynch, said: “The market
has spoken — the Fed is free to start
hiking rates in December.”
Energy, materials and financial stocks
had been the best performers since the
day before the conclusion of the October
policy meeting that triggered the sharp
— Andrew Harrer/Bloomberg
rise in market expectations of a Decem-
ber “lift-off”, he added.
“That suggests a belief in the market
that the Fed is going to be able to
start hiking rates in December without
much negative impact on the US econ-
omy, as well as — crucially — without
crushing commodities, oil and the
global economy.”
Joe LaVorgna, chief US economist at
Deutsche Bank, said that the bar for a
December rise was fairly low with
respect to incoming economic data.
“Even though we expect a soft
November non-farm payroll report —
partially the result of payback from
unexpected strength in October — the
Fed appears likely to look through any
2100
2080
2060
2040
2020
Oct 2015 Nov
potential November weakness, empha- US equities Healthcare stocks ran into
sising the cumulative improvement profit-taking after a recent run of gains
over the course of the year as justifica- while the broader market appeared
tion for lift-off,” he said. comfortable with expectations that US
However, interest rate futures stub- interest rates would rise next month
bornly kept the probability of a move
next month priced at 66 per cent, while FTSE 100 index
the yield on the two-year Treasury note Change on day 0.81%
held steady at 0.88 per cent. 6500
In contrast to the Fed minutes, those 6400
from the ECB’s latest policy gathering 6300
“strongly echo the message of numerous 6200
recent speeches by governing council
6100
members signalling further monetary Oct 2015 Nov
stimulus at the next meeting on Decem-
ber 3”, said Capital Economics. UK equities Hefty gains for Johnson
Nevertheless, the euro was up 0.8 per Matthey, CRH and Royal Mail helped
cent against the dollar at $1.0744, and push the FTSE 100 to its highest in a
0.1 per cent higher versus the yen at week, although the index was down
Y131.84, even as the yield on the 3.6 per cent for the year so far
German 10-year government bond fell
3 basis points to 0.48 per cent. Eurofirst 300 index
The dollar was 0.7 per cent weaker
Change on day 0.43%
against the yen at Y122.72, leaving the 1500
dollar index, a measure of the US cur- 1490
rency against a basket of peers, down 0.8 1480
per cent. That helped gold rally $12 to
1470
$1,082 an ounce.
1460
The BoJ kept policy unchanged, main-
Oct 2015 Nov
taining its purchases of government
bonds at Y80tn a year. Its statement European equities Sodexo shares
highlighted the fact that some indica- jumped 9.9 per cent after the catering
tors of inflation expectations had been group gave an encouraging trading
“relatively weak”, although Haruhiko update, helping the Eurofirst 300 hit a
Kuroda, governor, said that there was no three-month intraday high
change to the view that longer-term
price expectations were rising.
Mansoor Mohi-uddin, senior market Nikkei 225 index
strategist at RBS, noted that Mr Kuroda Change on day (’000) 1.07%
20.0
had been similarly dismissive of Octo- 19.5
ber’s weak trade data. “The BoJ thus
19.0
seems unlikely to consider more easing
18.5
until at least April,” he said.
Industrial commodities looked shaky. 18.0
Oct 2015 Nov
Copper touched $4,573 a tonne in
London, the lowest since May 2009, Japanese equities The Nikkei ended
before ending 0.4 per cent up at $4,630. at a three-month high as participants
Zinc and nickel also struck multiyear took heart from a strong overnight
lows, while Brent oil was down 0.3 per advance for Wall Street
cent at $44.03 a barrel.

Best Buy Green Mountain shares zoomed into the

Wall Street
Best Buy suffers as
electronics interest
powers down
Adam Samson
Best Buy shares fell after the electronics
retailer offered a cautious outlook for
the holiday-shopping season.
The company said it expects fiscal
fourth-quarter revenue growth to be
nearly flat, reflecting weakness in the
consumer electronics retailing industry.
Indeed, sales in the fiscal third
quarter, which ended on October 31, fell
2.4 per cent from the year before to
$8.82bn. That missed Wall Street
expectations of $8.83bn.
The news is yet another sign of the
uneven performance of retailers. Macy’s
and Nordstrom, both department store
chains, issued gloomy outlooks last
week. However, Home Depot, the
biggest US home improvement retailer,
on Tuesday revealed better than
expected quarterly results.
Best Buy’s shares fell 2.8 per cent in
Share price ($)
Oct 2015
Source: Thomson Reuters Datastream
Nov
Day's
Indices
S & P 500
Close
2079.71
change
DJ Industrials 17719.19 -17.97
Nasdaq Comp 5074.28
Russell 2000 1204.70
VIX 17.02
US 10 yr Treas Bd 2.26
US 2 yr Treas Bd 0.82
midday trading to $30.44, widening its
year-to-date loss to 20.9 per cent.
Elsewhere, UnitedHealth cut its full-
year profit outlook as its involvement in
US public insurance exchanges weighs
on its business. The biggest US health
insurer added that it may abandon the
marketplaces, a key component of US
President Barack Obama’s signature
healthcare law.
UnitedHealth’s shares skidded 4.3 per
cent to $112.17, knocking its 2015 gain to
10.9 per cent. The concerns about the
exchanges also rippled across the
healthcare sector, with many insurers
and other players in the area sliding.
Anthem, another insurer, dropped 6.7
per cent to $128.04. Meanwhile, HCA
Holdings, an operator of hospitals,
dropped 5.2 per cent to $66.53.
On the other side of the ledger, Keurig
green. The maker of single-serve coffee Trading Directory
36 pods and brewers revealed stronger-
34 than-expected adjusted quarterly
32 profits after the closing bell on
30 Wednesday. Sales also narrowly topped
28 Wall Street expectations.
The Vermont-based company has had
a rough year as concerns have swirled
about the performance of its cold-
-3.87
beverage machine, called Kold. The
hope has been that the new device will
help sustain the company as it struggles
-0.92 with lukewarm sales of its hot brewers.
-8.35 The shares shot up 25.7 per cent
0.17
yesterday, but were still down more
-0.01
than 60 per cent for the year.
0.00
Also in the black was Valeant, the
struggling speciality pharmaceutical
company. Its debt was initiated at
“overweight” by Citigroup. Valeant has
come under scrutiny over increases in
the price of some of its drugs and its
relationship with a speciality pharmacy.
The stock rallied 8.1 per cent to $78.55
yesterday, helping narrow the year-to-
date loss to 45.1 per cent.
Meanwhile, Match Group and Square
both made their public-market debuts.
Match, the parent of dating app Tinder,
popped 13.3 per cent to $13.59, after
pricing at the lower end of its expected
range. Square, a mobile payment
company run by Twitter chief Jack
Dorsey, climbed 44.6 per cent to $13.01,
after pricing below its projected range.
In midday trading, the S&P 500 fell
0.1 per cent to 2,082.6, the Dow Jones
Industrial Average dipped 0.1 per cent
to 17,720.66 and the Nasdaq Composite
was a touch firmer at 5,079.84.

The BoE’s next financial stability August, JPMorgan said. “Management

London
Virgin Money slips on
clampdown worries
Bryce Elder
Fears of a clampdown on risky lending
put challenger banks such as Virgin
Money under pressure yesterday.
Merrill Lynch turned cautious on the
fledgling lenders in a sector review.
With the Bank of England likely to put
off its first interest rate increase until
mid-2017, it needed to tame buy-to-let
mortgage lending and unsecured credit
by other measures, Merrill said.
review on December 1 was likely to
introduce underwriting caps and might
include more draconian measures.
One option, it said, would be to insist
that banks put higher risk weightings on
consumer debt such as by treating buy-
to-let mortgages as commercial rather
than residential lending.
Virgin Money, down 5.6 per cent to
353p, faces the sector’s biggest hit to its
capital buffers, said Merrill.
It advised selling Aldermore, down
5.3 per cent to 262.3p, and landlord
mortgage specialist Paragon, which
slipped 4.5 per cent to 402.5p.
A wider rally lifted the FTSE 100 by
0.8 per cent, or 50.96 points, to 6,329.93.
Leading the gainers, Johnson
Matthey rallied 9.6 per cent to £26.94
after the auto catalyst maker’s interim
results came with a special dividend.
G4S dropped 2.9 per cent to 225.8p, a
two-year low. JPMorgan Cazenove said
it was cutting earnings forecasts for G4S
having hosted a “fireside chat” with the
security group’s chief finance officer.
Emerging market growth had
weakened since G4S interim results in
expects growth at the 4 per cent level for
the year,” it told clients. “At the time of
the first-half results, management had
thought that second-half growth could
trend towards 5 per cent but emerging
markets (circa 40 per cent of revenue)
have slowed a bit.”
Housebuilders drifted after Bovis
Homes warned on profit margins,
blaming cost inflation and planning
delays on its high margin sites.
Bovis fell 8.6 per cent to 904p,
Berkeley lost 1.5 per cent to £30.93
and Persimmon was down 1.3 per cent
to £18.40.
Poundland tumbled 20.1 per cent to
222.7p on a profit warning, caused in
part by the acquisition of 99p Stores.
Stretched finances at the lossmaking
chain had led to a withdrawal of credit
insurance, which compounded
“volatile” trading conditions,
Poundland said.
Ophir Energy fell 6.6 per cent to 90.6p
after it said an exploration well in the
Gulf of Thailand was below commercial
quality, so had been plugged and
abandoned.
24 ★ Friday 20 November 2015

INSIGHT Analysis. Capital markets

Jennifer
Hughes
Reverse Yankees settle into Europe’s bond scene
Rates divergence favours the Here to stay?
trend for foreign companies
Adding renminbi to being the biggest euro issuers
Reverse Yankees: euro-denominated corporate bonds
Europe US Rest of world

IMF currency basket 2014

GAVIN JACKSON Total €318.45bn 2015 (Year-to-date)
is more than symbolic Among fearsome warriors and cute ani-
2013 Total €297.85bn
mals — the Japanese samurai, the Chi-
Total €282.12bn
nese panda and the Australian kangaroo €258.8bn
— is the reverse Yankee, the European
€229.1bn €201.7bn

B
ack in 2009 the west was desperately seeking market for foreign issuers, which has
green shoots of recovery and paid little atten- stood out this year despite its prosaic
tion when Zhou Xiaochuan called for nothing name.
less than a new world financial order. The reason US companies are selling
China’s central bank governor proposed so many euro-denominated bonds
replacing the US dollar as the international reserve cur- relates to diverging monetary policy on
rency with a global system controlled by the International either side of the Atlantic.
Monetary Fund. If, as expected, the IMF this month The European Central Bank’s quanti-
approves the inclusion of the renminbi as a reserve cur- tative easing programme has pulled
rency, it will mark a small step for Mr Zhou’s 2009 vision eurozone bond yields down to historic
but a big move for the renminbi. lows, while the US Federal Reserve may
The prospect of China’s currency joining the dollar, euro, finally shift borrowing costs higher as
yen and sterling in backing the IMF’s Special Drawing soon as next month.
Rights — its unit of account, restricted to member govern- With US yields well above those in the €63.2bn
€633.2bn
€63.22bn €33bn
ments — has been described as everything from a symbolic
ego trip on the part of Beijing to the dawning of a new era.
eurozone, a range of blue-chip compa-
nies have sold reverse Yankees to lock in
€32.5bn
€32.5bn
€32.5bn
n €20.5bn €38.6bn
€38.6b
€3
38.6bn
n €21bn
In all probability it will be like many Chinese financial lower borrowing costs. FT graphic Source: Dealogic
reforms: significant in hindsight, but hard to get excited Not only does the outlook for the debt
about in the short term. sales remain robust because of growing
Market enthusiasm for early-stage reforms such as divergence between US and eurozone ‘US issuers, kees of €38bn, according to Dealogic. “The euro market is nowhere near as Investment. “Maybe the knowledge
de-pegging the renminbi 10 years ago has given way to interest rates, but a new driver looms in Bond sales have come not just from competitive for US issuers doing a euro base or research base or mandate makes
ennui as the changes get smaller and China gets bigger. The the form of mergers and acquisitions. even the US companies. The total raised by Chi- deal as it was at the start of the year,” them more difficult to find a home.”
result is often disappointment in the numbers as China “The estimated M&A refinancing lesser-known nese borrowers has climbed to €9bn says Frazer Ross of the global risk syndi- Many European funds have to invest
maintains an antipathy to the sweeping changes, accom- pipeline is sizeable, and you could argue names, have from nothing last year. Companies that cate desk at Deutsche Bank. in European companies, he adds.
panied by headline-grabbing figures, beloved of newly that not all of those deals can be done in are neither European nor US account Many issuers next year are likely to be Worries over market liquidity may
installed western executives and politicians. the dollar market,” says Marco Baldini, experienced for 11 per cent of sales, compared with 7 global companies seeking a natural off- also result in eurozone investors seeking
Even the Shanghai-Hong Kong Stock Connect, a year old head of the European corporate syndi- earnings per cent for all of 2014. set of their euro revenues. to be compensated for the added diffi-
this week, was shrugged aside by many, because the abso- cate at Barclays. “It is fair to expect this volatility Much of this flow reflects an arbitrage “In 2015 all US issuers, even the culty of selling the bonds if they need to
lute numbers involved are rel- trend to continue.” opportunity, with companies locking in lesser-known names, have experienced get out, he says. They will demand a “lit-
atively small. However, its Cheaper financing in euros can make due to the a low European rate and swapping euro earnings volatility due to the stronger tle bit more premium”.
real significance lies in the fact
Ramifications of the return on US-based M&A work, as strong dollar’ proceeds back into dollars. Currency US dollar,” says Mr Ross. “Many issuers But other investors welcome the
that it was the first scheme SDR inclusion can the sheer size of deals — including swaps allow businesses, for a fee, to with operations in Europe want to build diversification and say the only problem
under which foreign investors the AB InBev-SABMiller megamerger — transfer coupon and principal pay- a presence in the European debt mar- comes if borrowers favour one currency
had been allowed in “blind”
come from that need refinancing. Other foreign ments into their own currency, limiting kets commensurate with their presence too much, creating indigestion as fund
— without requiring individ- its effect on companies buying European assets will the risk of adverse moves. on the ground to offset this volatility.” managers struggle to get enough capital.
ual approval. also need to tap the debt market. But this has changed. The cost of One note of caution on the reverse The trend is unlikely to go away soon.
SDR inclusion risks being
financial reform This year foreign groups have been swapping liabilities from euros to dol- Yankee boom extending into 2016 So long as the economic cycles of the US
categorised the same way. the biggest issuers of euro-denominated lars has climbed to 46 basis points — the relates to the eurozone investor base. and the eurozone are out of sync and
That would miss the point. It is not about boosting short- corporate bonds, with a 21.3 per cent highest for three years — as expecta- “Sometimes there isn’t a natural buyer interest rates plot divergent paths, com-
term demand from central banks for renminbi. Rather it is share. They have issued €63bn, easily tions that the Fed will tighten policy in for reverse Yankees,” says Mitch panies will have an incentive to come to
about embedding the currency in the international system eclipsing the 2014 total for reverse Yan- December increased. Reznick, co-head of credit at Hermes the European market.
and committing Beijing to financial reform.
If China were to constitute up to 10 per cent of the
SDR basket, reserve managers would need to buy just
$28bn of its currency — not a particularly meaningful Commodities
number compared with the $20bn traded daily in the
onshore spot market.
Reserve figures are thus another source of headline
number dismay. If China were to make up 3 per cent of the
Saudi Arabia seeks to
$11.5tn of reserves held globally by the end of 2016, as fore-
cast by DBS economist Nathan Chow, that $340bn would
quell oil supply fears
vault the renminbi into the top league alongside sterling
and the yen. Yet the dollar makes up almost two-thirds of
reserves, and the euro 20 per cent. ANJLI RAVAL — BAHRAIN A conference poll showed
Numbers aside, the big ramifications of SDR inclusion more than 90 per cent of
come from its effect on financial reform. Xiangrong Yu, Saudi Arabia and its Gulf attendees do not expect oil
economist at CICC, likens it to the impact of China joining Opec allies have lined up to prices to rise significantly
the World Trade Organisation in 2002. “Even if the ren- try to quell fears of a pro- next year, with a quarter
minbi fails to be added this time around, it will be impossi- longed supply glut in the oil expecting them to stay at
ble to reverse these reform measures,” he adds. market, warning of short- current levels or lower.
Changes so far include the scrapping in July of the need ages in the sector if invest- Just 7 per cent saw the
for central banks and other sovereign-linked players to ments fall further. prices trading back above
gain approval to invest in onshore bond markets. After all, A year after the de facto lead- $70 a barrel, the level many
reserve managers that want to add renminbi, however ers of Opec opened the taps major oil-producing coun-
slowly they do so, will need assets to buy. And China likes to squeeze high-cost rivals, tries need to get closer to bal-
and needs long-term, steady investors. they are struggling to reas- ancing their budgets.
There are also the efforts to allow the currency to trade sure cash-strapped members “Nobody expected the oil
more in line with market movements — a goal of the mis- of the cartel that the strategy price to go this low and it can-
handled August devaluation. The gap between onshore is working. not stay here,” said Ahmed
and offshore renminbi rates has risen recently, suggesting Prices are languishing near Ali Al Sharyan, secretary-
less response by the People’s Bank of China to what the $40 a barrel and showing lit- general at Bahrain’s National
market, via the offshore rate, is implying. tle sign of recovering, despite Oil and Gas Authority.
This, however, could be a function of the SDR campaign major oil companies slashing Saudi Arabia has said it
itself. After acceptance has been gained, pressure for billions of dollars in invest- will not cut production when
a stronger currency should fade, paving the way for a ment already this year. Opec members such as Iraq
drift lower. At a conference in Bahrain and Iran are raising or pre-
For short-term investors the main outcome of inclusion yesterday, Ali al-Naimi, paring to raise output.
could be greater uncertainty. For longer-term thinkers, it Saudi Arabia’s oil minister, The view is that in the
is possibly worth returning to Deng Xiaoping’s maxim told oil executives the world long-run Opec will win back
describing China’s method of progress as “crossing the must continue ploughing customers, with US shale oil
river by feeling the stones”. Investors sometimes need to money into projects to guar- expected to decline next year
count the stones felt and passed so far. There are more antee the “stability” of the after more than half a decade
of them than the numbers involved suggest. market in the long run. of robust growth. Prices may
“Demand for oil is continu- even shoot higher eventually
jennifer.hughes@ft.com ing to rise,” he said, predict- if investment is cut too far.
ing growth would rise at 1m United Arab Emirates
barrels a day, a faster pace energy ministry undersecre-
than earlier this decade. tary Matar Hamed Al Neyadi
Mr al-Naimi said $700bn said yesterday that he still
in investment would be believed Opec’s policy was
More comment and data on ft.com needed in the next decade “the right one”.
to “provide a surplus to He added: “Yes there is
guarantee the security of some pain. But we believe
Y Fast FT Our global economies, headed the market”. from next year the market
team gives you market- by Brazil, Russia, India But his remarks show he is will change itself and we
moving news and views, and China. still trying to win over a scep- could see some improve-
24 hours a day, five days ft.com/beyondbrics tical market that adopted the ment in the price.”
a week. ft.com/fastft mantra of “lower for longer”. In the meantime, the mar-
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a On December 4 Opec ket is increasingly saturated.
irreverent financial blog. look at what is driving meets in Vienna, and Vene- The International Energy
Join Paul Murphy and the global currency zuela and other economi- Agency said last week oil
Bryce Elder for the daily market. ft.com/podcasts cally weak Opec members inventories have hit record
Markets Live session at are expected to lobby for levels, approaching 3bn bar-
Y Lex Video Analysis a return to production rels in developed countries —
11am. ft.com/alphaville
and opinion from the cuts to bolster the price, the equivalent of a month’s
Y beyondbrics News and team on the hot issues which is on course this year global demand.
comment from more affecting companies and to average its lowest since Additional reporting by
than 40 emerging markets. ft.com/lexvideo 2005. Few are confident of a David Sheppard and Neil Hume
speedy recovery. in London
 FT SPECIAL REPORT

Doing Business in China

Friday November 20 2015 www.ft.com/reports | @ftreports

Inside

Beijing’s Legacy of economic

stimulus is mixed
Heavy debt burden

economic weighs on balance

sheets
Page 2

‘One Belt, One Road’

competence An investment initiative

that has been greeted
with confusion and
caution
Page 3

questioned ‘Dawn raid’ drills may

be needed
Foreign companies are
confronting a broader
array of regulatory risks
Page 3

Expatriates
Leadership under pressure as growth continues to The number of
grind down and debt piles up, says Jamil Anderlini Seeking change: Xi Jinping, China’s president, visits an advanced technology factory in the Fujian province — Xinhua/Alamy foreigners arriving
on lavish corporate

F
or more than two decades the
Chinese Communist party
has offered the masses an
unwritten social contract — we
will manage the country and
allow you to get rich, as long as you stay
out of politics.
Rapidly rising living standards and a
bureaucracy that was remarkably suc-
cessful at achieving high rates of growth
left most ordinary citizens convinced
this was a pretty good deal.
Most foreign investors in the country
have been similarly impressed by the
competence of Chinese technocrats and
their ability to manage an increasingly
complex economy that is now the
world’s largest, at least in purchasing
power terms.
But a stock market crash and a series
of policy mis-steps over the summer
have left many investors questioning
their faith in the infallibility of the man-
darins in Beijing.
Meanwhile, the relentless slowdown
in the broader Chinese economy that
has been under way for the last few
years appears to be worsening, and
deep-seated problems in the real estate,
manufacturing and financial sectors are
becoming more acute.
As recently as two years ago, many
Chinese officials were still confidently
predicting that the economy would con-
tinue to expand at a steady rate of 8 per
cent for at least two more decades.
But China will grow at its slowest
annual pace in a quarter of a century
this year as the Communist Party strug-
gles to achieve its full-year target of
“around 7 per cent” growth in GDP.
According to official statistics, the econ-
omy expanded 6.9 per cent in the third
quarter from a year earlier, after grow-
ing by 7 per cent in the first half.
Tao Wang, the chief China economist
at UBS, predicts growth will slow to 6.2
per cent next year and 5.8 per cent in
2017.
“Downside risks [to these forecasts]
will probably come mainly from a
deeper and more prolonged property
destocking process and a greater
knock-on effect on the industrial sector,
and to a lesser extent, from insufficient
policy support to temper the down-
turn,” she says. “Either could aggravate
the negative feedback loop in weak real
activity, worsening deflationary pres-
sures and increasing debt burdens; all
against a backdrop of higher capital out-
flows and financial market volatility.”
Investors are unlikely to see any relief
from China’s enormous export sector,
which is struggling with weak global
demand, rising environmental and
labour costs and a strengthening ren-
minbi.
At the start of 2015, the government
set a target of 6 per cent expansion in
total trade, but in the first 10 months
of the year China’s trade with the
rest of the world shrank 8 per cent from
the same period a year earlier.
Woes in the export sector were one
reason for the Chinese government’s
decision to devalue the renminbi on
August 11, according to people familiar packages is declining
with the matter. But the shocked reac- Page 4
tion of global markets and the abrupt
volte-face that followed that decision
probably did more to harm Chinese
leaders’ reputation for economic com-
petence than anything else.
“The devaluation was clearly a policy
mis-step,” says Derek Scissors, a resi-
dent scholar at the American Enterprise
Institute in Washington DC. “It seems
they were completely oblivious to the
downside risk and how the rest of the
world would react.” Corporate reinvention
In fact, global investors had already
been losing confidence in the Chinese A company in business
authorities for some time. for more than 100 years
Continued on page 2 Page 4

Ecommerce offers a cheaper

and faster way to market
Online
Charles Clover discovers
companies so powerful that
for all intents and purposes
they have become the
‘ministry of the internet’
On November 11, Todd Fryhover, presi-
dent of the Washington Apple Commis-
sion, joined China’s Singles Day celebra-
tion for the first time, hoping to sell 1.2m
apples from Washington State in 24
hours.
To help him out was the marketing
juggernaut of Alibaba, the Chinese
ecommerce company, where Washing-
ton apples are sold through branded
website Tmall, one of a number of for-
eign food brands that are finding a ready
market in China amid health scares over
domestic produce.
Singles Day, which began as a student
celebration of singledom in the early
1990s, was reinvented by Alibaba in
2009 as a mass festival of conspicuous
consumption, and more and more for-
eign companies are joining, hoping to
use the holiday as a marketing exercise
to get their brands out to the Chinese
public.
Mr Fryhover wants everyone in China
to have “a repeatable, wonderful experi-
ence on Washington apples”. China is
number six on the list of 60 countries
that import apples from Washington’s
450 growers, but he thinks it will be
number one by next year.
He may be right. By midnight, as a
video billboard in Alibaba’s Beijing
auditorium showed, $14.3bn of mer-
chandise had been bought via Alibaba’s
platforms in 24 hours.
Western companies are increasingly
turning to online commerce, a cheaper
and faster way to get to market than set-
ting up store chains or penetrating the
opaque retail market in China.
To do this they are learning to love
China’s internet conglomerates, infor-
mally known as BAT — Baidu, the search
company, Alibaba and Tencent, the
social media and gaming company. The
three have begun to dominate economic
life in China with amazing speed, doing
everything from retail to finance to
transportation, and moving into health-
care and even agriculture.
In just a few years, the BAT conglom-
Core customers: Jack Ma of Alibaba
erates has been able to monopolise
every aspect of daily life that could con-
ceivably be put on the web and sold to
the public. “They all want to own the
customer, they want to be with them
every second of the day, when they
watch a video, chat to their friends, buy
groceries, or go to a restaurant” says
Chris DeAngelis from the Beijing-based
Alliance Development Group.
China’s internet giants are becoming
what analyst Anne Stevenson-Yang of
J Capital Research calls “tech Keiretsu”,
referring to the national champions that
‘China in many ways is more
switched on to the internet
than other countries which
have had it for longer’
dominated the Japanese economy in the
20th century with interests in multiple
industries. “When companies are this
big in China, the difference between
public and private is not that impor-
tant,” she says. “For all intents and pur-
poses these companies have become the
ministry of the internet.”
But fierce competition means foreign
sellers have many options for courting
Chinese middle class buyers who are
looking to buy imported goods abroad
due to concerns about home-made
counterfeit goods.
Alibaba offers a number of options for
sellers, including the free eBay-like plat-
form Taobao, which is basically an
online flea market. Most big brands set
up on Tmall, which resembles an Ama-
zon market place, a platform where big
brands can set up stores and have more
control over their sales and supply
chains. Tmall’s first store from a fortune
500 company was Procter & Gamble,
launched in 2008, which has grown 100
times since then, according to P&G vice-
president Jasmine Xu.
This year on Singles Day Ms Xu says
that P&G made its first Rmb100m
($16m) in six minutes, compared with
eight hours last year. “[Tmall] is a key
platform to drive brand building in
addition to sales,” she says.
Some merchants have been loath to
list on Alibaba, however. It gets vast
online traffic, but the pressure to dis-
count and the prevalence of fakes
means it is “hard to protect a brand on
Tmall,” says one consultant.
But there are plenty of alternatives.
JD.com, Alibaba’s rival, which is increas-
ing its market share, has attracted a
number of brands to its online store.
Meanwhile, waiting in the wings is
Tencent’s social media app WeChat,
which has more than 500m users and is
growing rapidly. Fearful of flooding the
app with advertising and products, Ten-
cent has been holding back on “mone-
tising” WeChat.
But advertising on WeChat is just one
way of getting attention, and many com-
panies have found they can win huge
marketing success simply by using
WeChat for word-of-mouth marketing.
Fans of English country living, for
example, can join a WeChat group
devoted to Aga cookers, the iconic Eng-
lish oven brand, watch videos about
cooking on an Aga, swap messages
about it, and, thanks to the software
which embeds the store in the chat-
room, even buy one on impulse.
“WeChat is unusually versatile; its
better than Facebook, better than
WhatsApp for marketing,” says Jim
James, head of EastWest Public Rela-
tions in Beijing, which designed the Aga
WeChat group.
“China in many ways is more
switched on to the internet than other
countries which have had it for longer.”
2 ★ FINANCIAL TIMES Friday 20 November 2015

Doing Business in China

‘It is just like

the left hand
borrowing from
the right hand’
Debt Gabriel Wildau says the legacy of the
government’s economic stimulus plan is mixed

W
hen China's cabinet
announced a Rmb4tn
economic stimulus at
the height of the global
financial crisis in
November 2008, the plan was widely
praised as a vital contribution to sup-
porting the world economy.
Seven years later, the legacy of that
programme is decidedly mixed. The
burst of spending on infrastructure and
new manufacturing capacity propelled
the economy to 9.8 per cent average
annual GDP growth in 2009-2011 and
also buoyed the economies of resource
exporters such as Australia and Brazil
by boosting demand for industrial com-
modities.
But the stimulus also led to a vast
increase in debt. McKinsey, the business
consultancy, estimates that total debt —
including the household, corporate,
financial and government sectors —
quadrupled from $7.4tn at the end of
2007 to $28.2tn by mid-2014. As a share
of GDP, Chinese debt rose from 158 per
cent to 282 per cent in the same period.
Most analysts do not believe China
will suffer an acute debt crisis. Instead,
the fear is of a Japan-style scenario in
which state-owned banks roll over
unpaid debts to unprofitable “zombie”
companies in a strategy of “extend and
pretend”. As corporate cash flows are
increasingly used to service old debts,
growth will suffer as less money is avail-
able to finance new investment.
“The majority of debt in China is owed
by state-owned enterprises (SOEs) and
local governments to state-owned
banks. In other words, they are more
like the left hand of the government bor-
rowing from the right hand of the gov-
ernment,” Larry Hu, China economist at
Macquarie Securities, wrote in October.
“What concerns us most is not an immi-
nent debt crisis but lower long-term
growth.”
China's leadership has taken a series
of steps over the past year to bring debt
under control. The most important has
been the creation of a municipal bond
market.
During the stimulus period, local gov-
ernments borrowed heavily through
special-purpose investment vehicles to
circumvent a legal ban on local borrow-
ing. Last year, in an effort to “close the
back door and open the front door”, the
government eliminated this ban and
allowed provinces to issue bonds
directly. The finance ministry sets debt
quotas for each province, limiting the
total amount of new debt.
The ministry is also allowing prov-
inces to refinance bank loans to special
purpose investment vehicles (SPVs)
with municipal bonds. Lower interest
rates on bonds compared with loans will
reduce the burden of servicing debt for
local governments.
In addition to the run-up in borrow-
ing, China’s debt problems are com-
pounded by falling prices, particularly
in the manufacturing sector. Deflation
increases the real burden of servicing
Troubled times: debts as companies struggle to repay
the People’s debts fixed in nominal terms even as
Bank of China in their revenues decrease.
Beijing “Debt-deflation trap is a big macro
AFP
risk,” Tao Wang, China economist at
UBS, wrote in early November. “Declin-
ing prices, a heavy debt burden and still-
high interest rates will likely weigh on
corporate balance sheets, undermining
their debt servicing capacity and invest-
ment demand and worsening banks'
asset quality.”
To deal with this problem, economists
expect China’s central bank to continue
loosening monetary policy, which
should boost inflation and lower debt
servicing costs.
Ms Wang also believes that corporate
restructuring — including liquidation of
excess manufacturing capacity — as well
as monetary easing is necessary to
reverse deflationary trends. But that is
politically difficult. Local governments
have traditionally resisted the closure of
unproductive factories because it
involves both the laying off of workers
and sacrificing tax revenue.
Reducing the flow of new debt, lower-
ing debt service costs and boosting infla-
tion are all necessary to address China's
debt challenge, but they are not suffi-
cient, analysts say. The final piece of the
puzzle is accepting that some debt can-
not be repaid. That means greater toler-
ance of defaults and write-offs.
For years, China’s government — fear-
ing the impact of default on financial
stability and economic confidence — has
used bailouts and debt rollovers to pre-
vent this scenario, especially for state-
owned enterprises where debt problems
are most severe.
Yet even the government’s considera-
ble fiscal resources are not sufficient to
bail out all the debt that is expected to
sour in the coming years as China’s
economy slows. Rating agency Fitch
believes the government’s tolerance for
default, including by SOEs, will increase
in the coming years, but only modestly.
“The agency expects defaults by SOEs
to become less uncommon in China's
corporate bond market, but still spo-
radic and isolated, as controlling sys-
‘Declining temic risk remains a top priority for the
prices, a Chinese government while the economy
remains soft,” Fitch said in a report.
heavy debt The rise in defaults is also leading to
burden and opportunities for distressed debt inves-
tors. Foreign debt investors played a
still-high modest role in China’s last round of
interest large-scale debt restructuring in the late
1990s and early 2000s, when state-
rates will owned banks offloaded trillions of ren-
likely minbi in bad loans from their balance
sheets in preparation for stock market
weigh on listings.
corporate So far, there is little evidence that for-
eign investors will be welcome this
balance time round, given the political sensitiv-
sheets’ ity of selling off state-owned assets to
foreigners.

Economic competence questioned

Continued from page 1
Around the middle of 2014 it became
clear that the government had decided
to encourage speculation in the coun-
try’s vast, but poorly regulated, equity
market. By attaching its imprimatur to
a bubble the government believed it
could engineer a giant debt-for-equity
swap as companies sold shares to pay off
some of the crushing debt that was
harder to service as growth slowed.
As the benchmark Shanghai index
soared in early 2015 the People’s Daily,
the official mouthpiece of the Commu-
nist Party, crowed in a front page
editorial that this was only the start of a
multiyear bull market. But barely two
months later the bubble burst and
prices of equities, that had been driven
upwards by a flood of newly sanctioned
margin trading, started to plummet.
Beijing’s knee jerk reaction was a
massive state-sponsored rescue effort to
buy stocks and stop the price falls.
When that did not work the government
banned large shareholders from selling
any stocks. The market kept falling and
eventually the “national team” of state-
backed stock-buying funds abandoned
their attempts to prop up prices — but
not before they had spent more than
$200bn trying to support the market.
“This was a huge hit to the govern-
ment’s credibility and it just got worse
with the failed devaluation attempt,”
said one market participant with close
ties to top financial regulators.
On August 11, the day the People’s
Bank of China — China’s central bank —
announced its devaluation, several of
the PBOC’s most senior officials were on
holiday and had to be recalled, accord-
ing to several people with knowledge of
the matter. These people said the PBOC
had proposed the move as just one pos-
sible policy option and did not expect
the central leadership to adopt it so
promptly. At first glance the announce-
ment appeared to be a master stroke.
In addition to a small “one-off” deval-
uation of less than 1 per cent against the
US dollar, the PBOC also said it would
now allow the market to play a much
bigger role in setting the exchange rate
— a reform the IMF and many other
institutions had been urging for years.
That meant Beijing could devalue the
currency to help struggling exporters
while also appearing to be complying
with IMF demands. Theoretically, this
would not lead to competitive devalua-
tions from other countries and China
would not be accused of following a
mercantilist policy. Over the next few
days investors pushed the value of the
renminbi down by close to 5 per cent, as
Beijing had hoped.
But outside China’s borders global
markets and regional Asian currencies
were collapsing as investors worried
about a currency war amid fears the
‘As investment and GDP
growth continue to slow,
employment and wage
growth may soften further’
Chinese economy was in much worse
trouble than anyone had thought.
Within days the PBOC reversed itself
and announced it was heavily interven-
ing in the market, essentially to re-peg
the renminbi to the dollar to try to calm
panicky markets and trading partners.
“The government was very surprised by
the strength of the international reac-
tion,” said one senior adviser to the Chi-
nese leadership. “But once it feels it has
sufficiently stabilised the market then
we will see some more devaluation.”
If this prediction is correct it will have
a vast impact on global companies and
investors operating in or coming to
China.
For years, the ever-rising value of the
renminbi was as certain and stable as
the Communist Party’s social contract
with its citizens and that meant a one-
way bet and an extra attraction for for-
eign investors pouring into renminbi
assets.
Investors looking for a bright spot in
China have pointed to resilience in con-
sumption and service sectors, which
have held up even as growth in invest-
ment, construction, manufacturing and
heavy industries has plummeted. The
government has encouraged this opti-
mism by pledging to shift the Chinese
growth model from investment and
construction to consumption and serv-
ices.
But in unpublished recent remarks to
visiting foreign dignitaries, even China’s
outspoken finance minister, Lou Jiwei,
forecast four or five years of much lower
growth as the economy digests massive
industrial overcapacity, as well as exces-
sive debt levels that are still rising. He
also warned that he expects “labour
pains” as unemployment rises.
“Although employment and con-
sumption have stayed resilient so far, we
expect both to face increasing head-
winds in 2016 and 2017,” says Ms Wang.
“Going forward, as investment and GDP
growth continue to slow, employment
and wage growth may soften further.”
As growth slows and debt piles up the
government’s unwritten contract with
the masses — and with global investors
— is looking increasingly strained.

Contributors
Jamil Anderlini Erick Robinson Andy Mears
Beijing bureau chief Beijing-based partner at Rouse, an Picture editor
international law firm
Charles Clover For advertising details, contact
Tom Mitchell Chris Campbell Olivia Hu on 00 86 21 6375 9222 ext. 121
Lucy Hornby Graphic artist or olivia.hu@ftchinese.com,
Beijing correspondents or your usual FT representative.
Valentina Romei
Ben Bland Statistics journalist All editorial content in this report is
South China correspondent produced by the FT.
Aban Contractor Our advertisers have no influence over or
Gabriel Wildau Commissioning editor prior sight of the articles.
Patti Waldmeir
Shanghai correspondents Steven Bird All FT Reports are available at:
Designer ft.com/reports
Follow us on Twitter @ftreports
Friday 20 November 2015 ★ FINANCIAL TIMES 3

Doing Business in China

‘One Belt One Road’ plan greeted with caution

Investment So far there is little indication of where the money from the country’s development initiative might flow, or how to tap into it, reports Lucy Hornby

N
o Chinese initiative has
been lapped up so eagerly
since Chairman Mao’s Little
Red Book inspired millions
across the globe in the
1960s. This time the proponents of the
“One Belt, One Road” slogan are not
young idealists but suit-clad and nor-
mally more sobersided politicians, bank
analysts and economists.
One Belt, One Road is a Chinese for-
eign policy initiative promoted by presi-
dent Xi Jinping and sometimes known
as China’s answer to the Marshall Plan
(although Beijing rejects that analogy).
The numbers are impressive: $40bn
from the new Silk Road Fund, to sup-
port private investment; not to mention
the lion’s share of the expected $100bn
to be dispersed from the new China-led
Asian Infrastructure Investment Bank
(AIIB).
So far there is little indication of
where the money might flow, or how to
tap it.
The confusion starts with the name
itself. One Belt refers to what was histor-
ically called the Silk Road, stretching
from China through central Asia. One
Road refers to a “maritime road” which
more or less draws inspiration from the
voyages through Southeast Asia to the
east coast of Africa by Zheng He, the
eunuch admiral of the Ming Dynasty.
Rather than being limited to China’s
near neighbours in central and South-
east Asia, One Belt, One Road is geo-
graphically elastic.
“Some people say there are only 65
countries involved but that’s a misun-
derstanding,” says Zhao Changhui, chief
risk analyst at China Export-Import
Bank and an enthusiastic proponent of
the concept. “It’s a new method of devel-
opment for China and the world.”
In the absence of concrete plans,
international enthusiasts are left to fill
in the blanks.
George Osborne, the UK chancellor
believes One Belt, One Road invest-
ments will dovetail nicely with his
promise to develop the north of Eng-
land. In September he visited ethnically
divided Xinjiang on China’s borders
with central Asia to evoke the Silk Road.
China in numbers
Chinese GDP per capita is However, bureaucracy continues China’s debt rises fast, higher than The student population is now
approaching that of the US ... to be among the most problematic in some advanced countries 12% smaller than in 2003
GDP per capita at purchasing power parity $, % of US factors for business ... Debt to GDP ratio Million of enrolled students
Forecast Survey of executives, 2015 Postgraduate
300
30 Rank (0 = least problematic) Higher Institution
0 2 4 6 8 10 12 250
China
20 Insufficient capacity to innovate 200 200
Indonesia Access to financing 150
10 Inefficient government bureaucracy
Inadequate supply of infrastructure 100
Tax rates
India 50 Secondary School
0 Corruption 150
Policy instability 0
1980 90 2000 10 15 20 Tax regulation complexity 2000 2007 2014 (Q2)
... and it’s becoming more ... with China’s perceived as more
Household Government Financial Non-financial
business-friendly Starting a business corrupt than other Asia countries institutions corporate 100
Days to do each task Registering property Global corruption perception index, 2014
Debt to GDP ratio, Q2 2014
800 1 (least corrupt) 174 (most corrupt)
300
Paying taxes Primary School
600 Hong 250
Kong China 50
Securing 17 100 200
construction 400 150
permits
200 100
50
India, Philippines 0
0 Thailand, Sri Lanka 0
2003 05 10 15 85 China US Germany 1980 85 90 95 2000 05 10 14
FT graphic Sources: IMF; World Bank Ease of Doing Business; World Economic Forum; Transparency International; McKinsey; CEIC
While there, he announced £60m of World Bank in Beijing, also views the were signed during an April visit by projects, when they are finally detailed,
investment into real estate projects in potential whole as greater than the sum President Xi, and a steel mill that state- would have to be profitable at lower
Manchester and Sheffield by the Hual- of its parts, writing: “The benefits only owned Hebei Iron and Steel proposes to prices, or heavily subsidised by the Chi-
ing Group, known for developing whole- accrue if each part of the belt and road build in South Africa. nese state. Potential host nations are
sale markets in Xinjiang. gets built, or at least a significant part”. One consultant, who advises Chinese already pulling back on investment to
Others see a spurt of investment into Within China, regional promoters are businesses in Africa, says that would-be ride out the anticipated trough so they
regions that are already close trading rushing to tie their projects to the One Chinese investors always ask whether a cannot be counted on for the funds.
partners with China. Singapore, the Belt, One Road initiative with the same proposed project would be eligible for ‘The time is The AIIB could fill in the gaps once it is
trading hub for Southeast Asia, could enthusiasm and lack of geographic dis- earmarked One Belt loans from Chinese up and running, but details of how it will
capture some of the flow. tinction as China’s earlier “Develop the banks, before taking talks further. not ripe. It’s operate are still to be finalised.
“The country’s role as a major busi- West” slogan, which ultimately grew to Mr Zhao says the lack of projects so not that Another concern for Chinese compa-
ness, financial and trade hub for the include much of the nation. far is simply because the concept is new. nies is the security of any investment.
Asia Pacific region will only be But when it comes to committing “The time is not ripe. It’s not that there there aren’t After the fall of the Soviet Union, Euro-
enhanced,” says Stuart Fuller of law their money overseas, Chinese business aren’t projects, it’s just that they aren’t projects, it’s pean companies led by oil investors had
firm King & Wood Mallesons. people have so far been more cautious developed yet.” to develop investment protocols to
Mr Zhao believes that investors from than international politicians. There are Others believe the lack of specific just that bridge central Asian countries’ Soviet-
third countries would also benefit, if the very few identifiable One Belt, One projects reflects a lack of clear business they aren’t based legal and corporate structures
investment from the Chinese side Road projects outside China’s borders. rationale. Chinese state-owned and pri- with western corporate norms.
improves infrastructure such as roads, The exceptions are a slew of Chinese vate businesses have already rushed developed China is now developing similar pro-
ports or airports in the host country. investments announced for Pakistan, into any promising projects during the yet’ tocols to support an expected influx of
Bert Hofman, country director for the where 51 memoranda of understanding oil and commodities boom. New Chinese investment to the region.

‘Dawn raid’ drills may become

de rigueur as authorities swoop
Office raids
Foreign companies are
confronting a broader array
of regulatory risks than ever
before, reports Tom Mitchell
In the summer of 2014 the National
Development and Reform Commission
(NDRC) raided a number of foreign
companies suspected of violating Bei-
jing’s Anti Monopoly Law (AML). At the
same time, senior executives at the
Chinese operations of a large multi-
national were meeting to deliberate a
demand from the authorities that they
change their pricing policies.
The company’s chief financial officer
and legal counsel argued that there was
no legal basis for the instruction, and
recommended rejecting it. According to
one person familiar with the delibera-
tions, they were overruled by a more
senior colleague who said: “Don’t talk to
me about rule of law, this is China.”
The company’s China pricing policies
were duly adjusted and the company’s
operations — unlike those of many of
their competitors — were never raided
or fined.
Such fraught exchanges have become
increasingly common at the offices of
multinationals in China since 2013,
when the NDRC handed down a land-
mark series of fines on infant formula
manufacturers accused of violating the
2008 AML.
Coupled with similar investigations
by the State Administration of Industry
and Commerce, which also governs
aspects of the AML, and even police
investigations into allegedly crimi-
nal behaviour such as bribery, for-
eign companies are confronting a
broader array of regulatory risks
than ever before in the world’s sec-
ond-largest economy.
Some attribute the sea change to a
natural evolution of China’s regula-
tory environment. “It’s such a young
system that every day you’re coming
across a new area where the rules
haven’t been written,” says Nick Beck-
ett, a Beijing-based lawyer with CMS
Cameron McKenna.
Keep good records:
Susan Ning of King &
Wood Mallesons, Beijing
“It’s a good time for lawyers.”
Many lawyers are advising their cor-
porate clients in China to implement —
and practice — a kind of “dawn raid
drill” in anticipation of uninvited regu-
latory visits. Companies, they say,
should have designated employees
tasked with raising the alarm to senior
executives, who in turn manage the
response.
Mr Beckett says many companies “try
to control the flow of information” to
investigators but advises that they do so
in a helpful manner.
Susan Ning, a competition lawyer
with King & Wood Mallesons in Beijing,
adds that it is especially important to
make a record of the information pro-
vided. That can at least help companies
better understand the thrust of the
investigation.
Companies should not expect to be
presented with a warrant that has been
issued after careful deliberation by a
judge. They may well receive only an
“investigation notice”.
A company contending with a raid
has, in a large sense, already lost at least
half the battle. Once the NDRC or other
regulatory officials confirm that they
are investigating a company, it is
extremely unlikely for them not to fol-
low through with a finding of fault.
A raid, especially if news of it leaks via
the official Xinhua news agency or other
state media outlets, only makes it that
much more difficult for regulators to
back down. After that, Mr Beckett says,
“it is a damage limitation process”.
As a result, adds Erick Robinson at
Rouse, the international law firm, it is
essential that companies or their law-
yers have close connections with regula-
tors, which could enable them to nip
problems in the bud before they turn
into a full-blown scandal (Foreign com-
panies must learn trust and respect, see
page 4).
The opacity and presumption of guilt
that often surrounds regulatory investi-
gations in China can trigger a defensive
reaction from western companies more
familiar with adversarial judicial sys-
tems, in which it is expected that firms
and individuals will fight for their rights.
That can give rise to corporate reac-
tions ranging from “it’s not fair” to “how
can they think this?”, which often only
further antagonises investigators.
Chinese criminal and even political
“show trial” cases offer foreign investors
an important insight into the workings
of the country’s judicial system.
In a tradition dating back not just to
the early years of rule by the Chinese
Communist party, but also to imperial
times, remorse and confessions are
rewarded with leniency. Hence the pat-
tern of frequent state news broadcasts of
suspects “confessing” to police accusa-
tions about various crimes long before
any official hearing dates, in what to
western eyes appears a gross violation of
judicial due process.
In their desire to avoid any entangle-
ment with China’s regulatory appara-
tuses, some foreign companies have
begun to make proactive “applications
for leniency”.
The best example of this was the
NDRC’s finding last year against 12 Japa-
nese auto parts companies for alleged
price collusion. In a repeat of Japanese
cartel cases previously prosecuted in
the US and the European Union, the
parts suppliers admitted to conspiring
to fix prices to their automaker
customers.
According to people familiar with the
investigation, the case came about after
one of the Japanese companies reported
the behaviour to the NDRC in return for
leniency.
For the supplier in question, it turned
out to be a very effective way of avoiding
much more severe sanctions, while
other companies that were not as proac-
tive and co-operative
ended up paying
stiff financial
penalties.
4 ★ FINANCIAL TIMES Friday 20 November 2015

Doing Business in China

Cash-strapped Family ties prove

companies see indispensable
the appeal of Strategic revamp
Ben Bland looks at a
profit point in the industry. But unfortu-
nately they reached this perception at
the lip of the great recession.”
As the world’s biggest sourcing com-

returning locals company reinventing itself

after more than 100 years
in the sourcing business
Over the past 109 turbulent years of Chi-
Expatriates The number arriving on lavish nese history, the leaders of Hong Kong
sourcing and trading company Li &
corporate packages is falling, writes Patti Waldmeir Fung have had front-row seats for dra-
matic twists and turns of fortune.
pany, Li & Fung was hit hard. Profit has
dropped by 21 per cent since 2011 to
$539m last year, while turnover has
stagnated at about $19bn. Shares in the
company which is listed in Hong Kong
have lost more than 70 per cent of their
value since peaking in 2011, giving the
business a market capitalisation of
$6.2bn.
But Mr Fung, whose family still owns

L
iving in Shanghai is like living
in China — only less so. In
many ways, it is the least Chi-
nese of cities: English is
widely (if often badly) spoken
in many shops, restaurants and residen-
tial areas patronised by expatriates.
But Shanghai taxi drivers famously do
not speak English (or understand the
English names of even the most famous
city hotels) and finding an English
speaker outside expat areas can be
tough. Overall, Shanghai packs a mean
punch in terms of culture shock for any-
one who is not Chinese — but less so than
anywhere else on the mainland.
Exotic but not completely alien, mod-
ern but with a taste of the ancient,
Shanghai attracts people from around
the world who want to cash in on China’s
economic boom — but without stepping
too far outside their comfort zone. And
that remains true today, despite the Chi-
nese economic slowdown that has given
stock markets around the world jitters.
Despite Beijing’s recent announce-
ment that GDP growth could fall as low
as 6.5 per cent next year, down from
double digits as recently as 2010, there is
little sign of a big exodus of expatriates
from the mainland. In truth, China’s
economy has been slowing steadily for
several years as it matures, but for
ambitious expatriate managers, it
remains an important place to build a
career.
InterNations, the global expat com-
munity, says China ranks third behind
only the US and Malta, in its “job and
career” rankings of expatriate life in 64
foreign countries. A remarkably low 3
per cent of expats surveyed in China
said they regarded the state of the local
economy negatively — compared with
an average of 21 per cent who hold that
view in other countries, InterNations
said in its 2015 rankings released last
month. But when it comes to “feeling
welcome”, China sits at 61 out of 64
countries.
Still, there is no shortage of expats
coming to Shanghai for work, local
headhunters say, and figures for the
number of residence permits issued to
foreigners in Shanghai fell only slightly
between 2013 and 2014 and remain 70
per cent up on a decade ago, at about
170,000.
But local relocation companies, inter-
national schools and long-time expat
business people say they see a marked
change in the kind of expatriates who
are moving to Shanghai. Fewer are com-
ing on lavish corporate packages (as
companies save money by localising
senior positions) and more are coming
on their own.
Overall, foreign resident numbers fell
3 per cent last year, but relocation
company numbers and international
school enrolment suggest a much
steeper decline in executives heading to
Shanghai on full expat packages. The
headmaster of one of the leading Shang-
hai international schools says he sees a
marked change in the racial composi-
tion of the school’s students, with many
more Asian children and fewer Europe-
ans, to the point where the school has
had to offer English as a second lan-
Population overload: the commercial heartland on West Nanjing Road — Dreamstime
guage support to preschoolers for the
first time.
At a recent meeting sponsored by the
American Chamber of Commerce in
Shanghai, several managers of multina-
tional corporations said that most exec-
utive positions in their corporations had
been switched to local terms in recent
years.
“The number of expatriates hasn’t
fallen, but the composition of the expat
population has changed. Many more
expats are actually returning Chinese,
and the western expat on a two-three-
year contract is much scarcer than
before,” says one expat service provider.
Lawyers, who work on visa matters,
say that although overall residence per-
mit numbers have not fallen sharply,
the statistics could be inflated by expats
who were previously in the country ille-
gally, but regularised their status after a
recent crackdown.
Still, Shanghai’s reputation as a place
to live is far from stellar. Shanghai did
not even make it into the top 100 of the
world’s most liveable cities, according to
2015 rankings from Mercer, the employ-
ment consultants.
Many expats complain about traffic
and pollution, food safety and internet
speed. The stampede at the 2014 New
Year’s Eve celebrations in which 36 peo-
ple were trampled to death on the
Shanghai Bund was a sombre reminder
of the city’s crowds and chaos — and a
lack of public civility that is extreme
even by global megacity standards.
With additional reporting by Jackie Cai
Like many Chinese family-run busi-
nesses, the venture has found ways to
reinvent itself through war, the rise to
power of the Communist party, global
recessions and capital market routs.
But, while Asia is at peace and thriv-
ing, the company — which helps global
retailers such as Walmart and Marks
and Spencer source clothing, home-
wares and other products — is facing the
toughest challenge of its modern era.
After 20 years of rapid growth as
China emerged as the world’s factory
floor, the company came up against
what Spencer Fung, chief executive,
calls “almost a perfect storm” from 2010
onwards.
“The global financial crisis was the
first hit,” says Mr Fung, who is the great-
grandson of the company’s co-founder
and took the helm of Li & Fung in March
last year.
The worldwide demand shock came
just as factory wages in China, where Li
& Fung procures most of its goods, were
rising rapidly and the company was
struggling to digest the latest of 100
acquisitions during the previous two
decades.
Since then, the dizzying growth of
ecommerce and the expansion of low-
cost, fast fashion brands such as H&M
and Zara has shaken up the traditional
sourcing business still further.
“Li & Fung is facing terrific chal-
lenges,” says Robert Ross, a professor of
sociology at Clark University in Massa-
chusetts, who studies global apparel
supply chains. “They realised that being
the middleman is no longer the best
about 30 per cent of the company,
believes that investors will need to show
more patience in a venture just midway
through a strategic revamp. The com-
pany has already spun off its branded
goods business, now called Global
Brands Group that is listed in Hong
Kong with a market capitalisation of
about $1.8bn. Li & Fung is continuing to
streamline, while expanding into new
growth areas such as ecommerce and
logistics.
Spencer Fung,
Li & Fung chief
executive, says:
‘The global
financial crisis
was the first hit’
Like other sourcing companies, Li &
Fung is increasingly buying goods in
markets outside China, such as Vietnam
and Bangladesh where factory wages
can be 50 per cent lower. Mr Fung says
that 70-80 per cent of the company’s
durable goods, such as furniture, still
come from China, but only 35-40 per
cent of its clothing.
At the same time, it is trying to boost
its sales into China. While its Asian busi-
ness is growing, it still only accounts for
12 per cent of sales, compared with 63
per cent in the US and 17 per cent in
Europe. Mr Fung insists that the com-
pany remains focused on the long term.
“Our horizon is 10-20 years,” he says.
“We don’t want to do things that are only
good for the next quarter, we want to do
things that are good for the company.”

Foreign companies must learn that

trust and respect are paramount
OPINION
Erick
Robinson
China’s economic and industrial
transformation is occurring so rapidly
that foreign companies often fail to
appreciate the risks of doing business in
the country. This is particularly true in
the sphere of intellectual property (IP),
where companies now enjoy much
greater protections but have
simultaneously been tripped up by
competition regulators’ increased
scrutiny of their patent and licensing
practices.
China’s ability to protect patents has
grown after decades of non-existence
and non-enforcement. In 10 years, the
number of patent litigations filed has
more than quadrupled, with close to
10,000 cases submitted last year.
The Chinese government’s new
specialised IP courts now provide
companies with an enforcement
mechanism comparable to, if not better
than, those in Europe and the US.
Litigation in China also offers many
advantages to patent owners, including
win rates above 75 per cent (and even
higher for foreign patentees),
injunction rates above 95 per cent, short
time to trial, scant discovery and low
costs (less than one-tenth of those
incurred in the US). Most importantly,
because so many supply chains pass
through China, a single litigation can
effectively impose a global ban on sales
of a disputed product.
But not all patent owners should
rejoice. Along with a strengthening of
the patent system has come increased
enforcement of China’s 2008 Anti-
Monopoly Law (AML). Over the past
three years, China’s National
Development and Reform Commission
(NDRC) has beefed up staffing levels
and raised its price-related
investigations fourfold.
In 2013, the NDRC imposed price-
fixing fines of Rmb353m on six
Korean and Taiwanese LCD panel
manufacturers. Last year
Erick Robinson of
Rouse: ‘When you
are a hammer
everything looks
like a nail’
the NDRC began investigating
InterDigital, a US wireless technology
company, after complaints by Chinese
companies. InterDigital subsequently
reached settlement agreements with the
Chinese complainants and, in an
undertaking with the NDRC, said it
would scale back the royalty rates it
charges.
The NDRC also probed US technology
giant Qualcomm on similar grounds
and, earlier this year, imposed a record
penalty of Rmb6.1bn. Qualcomm
agreed to stop some of its “patent
bundling” practices and lowered certain
royalty rates by one-third.
AML penalties and fines in China
can be extreme. But in the case of
Qualcomm, perhaps the worst
consequence of its run-in with the
NDRC was the separate antitrust
inquiries that followed in South Korea,
the European Union and US.
The better road is one of
calm and thoughtfulness
rather than agitation and
hostility
There are a number of steps that
companies can take to minimise the
risks posed by regulatory investigations.
First, companies must have friends in
China. In a country where everything is
based on relationships, every company
must have multiple levels of
relationships with both government
officials and influential Chinese
industry leaders who have their ear
to the ground. This is not to encourage
any type of corruption, but rather
facilitate a free flow of information.
In China, trust and respect are
paramount and cannot be developed
overnight.
The challenge to Qualcomm
might have been avoided or minimised
if the US company had had better
Chinese government contacts who
could have advised it that problems
were brewing and explained the need
for action.
It is at this sort of early stage that
having knowledge of the problem and
the ability to communicate a defence is
paramount. Once the investigation was
announced publicly in February 2014,
there was no path for the NDRC to
impose either a minimal penalty or no
penalty without losing face.
Had Qualcomm and NDRC instead
been able to negotiate a mutually
acceptable solution earlier — and with
less publicity — the result may well have
been a lesser penalty that did not trigger
follow-up investigations in other
jurisdictions.
Second, all foreign companies and
their executives, lawyers and other
agents must act with great respect in
dealing with Chinese officials. US
companies in particular have a well-
deserved reputation for lacking
deference and humility.
Had InterDigital and Qualcomm
originally approached their situations
with greater meekness, things might
have evolved quite differently. Often it is
the lawyers that get in the way, because
when you are a hammer everything
looks like a nail. The better road is one
of calm and thoughtfulness rather than
agitation and hostility.
Third, any company that licenses
patents or technology in China should
always have in its back pocket a specific
minimum acceptable royalty rate. That
way any dispute can be nipped in the
bud with a public announcement that
the company is lowering its licensing
rate to an “even fairer level”, with
examples to support this claim. This is
not ideal but far better than the
alternative of having to face a formal
AML investigation.
The writer is chief patent
counsel for Rouse, an
international law firm
specialising in
intellectual
property, and a former
Qualcomm lawyer