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Red tape sprawl Going dark Walter the Dentist

Gillian Tett: America’s Encryption: the growing challenge New face of the great white
entrepreneurial halo slips — PAGE 9 for law enforcement — BIG READ, PAGE 6 hunter— ROBERT SHRIMSLEY, PAGE 8

Big companies IMF undecided Doubts over role of

fund in eurozone’s next Greek rescue
i Ex-US banking regulator quits Santander

raise red flag Former US banking regulator Sheila Bair has

resigned from the board of Banco Santander after
18 months, as the Spanish bank yesterday reported
a 17.6 per cent rise in second-quarter net profit to
€1.71bn.— PAGE 13; NET PROFIT UP, PAGE 15

on profits hit i Household spending boosts US GDP

US gross domestic product rose by an annualised
2.3 per cent in the three months to June, driven by
firmer household spending, coupled with an upturn

by China woes
in exports, and higher public outlays.— PAGE 3

i Debris provides hope of MH370 lead

Malaysia’s prime minister has
confirmed that a piece of aircraft
debris that washed up on a beach on
the Indian Ocean island of La
3 Alarm at slowdown in vital market Réunion was almost certainly from a
Boeing 777, the aircraft type of flight
3 Weaker growth set to damage sales MH370.— PAGE 4

MICHAEL STOTHARD — PARIS environment is changing for the worse.” i Uber to drive investment in India
China’s slowdown, which follows Uber, the ride-hailing app group, is aiming for its
Some of the world’s largest companies years of extraordinary growth, has been service in India to hit 1m daily fares by March 2016,
have sounded the alarm over the slow- particularly startling in recent months, as it targets $1bn in investment in the country and a
down in the Chinese economy, warning with figures last week showing that the challenge to domestic ride-sharing app Ola.— PAGE 14
that weaker growth would hit profits in country’s factory activity in July con-
the second half of the year. tracted the most in 15 months. i Unease lingers over Irish banks inquiry
Car companies such as PSA Peugeot The poor figures coincide with a time Doubts are being raised about whether a long
Citroën, Audi and Ford have slashed of turbulence on the Chinese stock mar- inquiry into Ireland’s banking collapse can provide
growth forecasts while industrial goods ket. The Shanghai Composite shed 8.5 a cathartic account of the crisis, which remains an
groups such as Caterpillar and Siemens per cent on Monday, its steepest drop open wound.— PAGE 2
have all spoken out on the negative since 2007. The fall came despite a
impact of China. string of interventions by Beijing to i Pressure mounts on Noble Group
The warnings are a sign that China’s stem the slide, including a ban on short Shares in Asian commodity dealer Noble Group fell
weaker growth and its stock market selling and an interest-rate cut. 12 per cent yesterday, with the Singapore Exchange
rout this month are creating a headache In the consumer goods sector, brewer issuing a warning to investors, with mounting
for global corporates that have long Anheuser-Busch InBev said yesterday questions over its accounts.— PAGE 20
relied heavily on the world’s second- that volumes fell 6.5 per cent in China as Alexis Tsipras won a battle early this morning with mutinous Syriza leftwingers — Thanassis Stavrakis/AP
largest economy to drive revenues. the result of “poor weather across the i IHG checks in for talks with Starwood
Audi and France’s Renault both cited country and economic headwinds”. InterContinental Hotels has held early-stage talks
China as they cut their global sales tar- Among industrial goods companies, PETER SPIEGEL — BRUSSELS cials have long said it would be without resort to a roll-call vote. with Starwood Hotels & Resorts over a union to
gets yesterday, with Christian Klingler, Schneider Electric, one of the world’s impossible to win Bundestag The IMF decided last week its create the world’s largest hotel group.— PAGE 13
The International Monetary
sales chief at Audi parent Volkswagen, largest electrical equipment makers, approval for the new €86bn existing bailout programme,
Fund’s board has been told
predicting “a bumpy road” in the coun- reported a 12 per cent fall in first-half bailout without the IMF. which was to run until March, Datawatch
Athens’ high debt levels and
try this year. profit and cut guidance because of The assessment adds another needed to be scrapped because
poor record of implementing
Elsewhere, Peugeot slashed its growth “weak construction and industrial mar- source of complexity just as it could no longer achieve its
reforms disqualify Greece Forecast GDP growth
forecast for China from 7 per cent to 3 kets” in China. Jean-Pascal Tricoire, Athens and its bailout monitors stated goal. The IMF then
from a third IMF bailout of the in eastern Europe
per cent, while earlier this week Ford chief executive, said that there was begin talks on concluding a deal forced Athens to request a new Prospects for
country, raising new questions Consensus of analysts’ forecasts
predicted the first full-year sales fall for “persistent weakness in China”. before an August 20 deadline. IMF programme, which economic growth
over whether it will join the for GDP growth in 2015 (%) in the big eastern
the Chinese car market since 1990. Siemens, the German industrial As the creditors harbour mis- requires board approval, neces- Russia Hungary
EU’s latest financial rescue. European
“In Asia, the China market has clearly group, said yesterday that sales in China givings, Alexis Tsipras, Greece’s sitating Wednesday’s meeting. Ukraine Poland
Czech Rep. Romania economies that
slowed,” said Akhil Johri, United Tech- fell 8 per cent in the quarter and Chinese This means that while IMF staff prime minister, won a battle According to a confidential 5
are EU members
nologies’ chief financial officer, at the US new orders slid 2 per cent when will participate in bailout talks with a mutinous far-left faction summary of the meeting, IMF 0 have not been
industrial group’s earnings call last adjusted for currency swings. under way in Athens, the fund in his governing Syriza party negotiators will take part in dis- affected by the
week. “Does China stabilise? That’s proba- will not decide whether to agree unhappy at conditions attac- cussions on the eurozone’s new -5 political problems
“Companies thought that China was bly the billion dollar question,” said Joe a new programme for months hed to the bailout. His proposal bailout but the fund will decide in Russia and the
the land of opportunity, but it’s not liv- Kaeser, Siemens chief executive. — potentially into next year. to hold an extraordinary party whether to take part only after Ukraine, according
ing up to that promise,” said Ludovic Additional reporting by Nicole Bullock in The delay threatens signifi- congress to examine the bailout Greece has “agreed on a com- Jul 2014 Date of forecast 15 Jul to Consensus
Subran, chief economist at Euler New York and Catherine Bennett in Paris cant repercussions, particu- once it has been completed was prehensive set of reforms”. Source: Consensus Economics Economics
Hermes. “They realise the business Drag on blue-chip groups page 22 larly in Germany, where offi- approved early this morning Tsipras wins battle page 2

Celgene pays hefty $7bn premium for

its early reluctance to swallow Receptos
DAVID CROW — NEW YORK is one of the starkest signs yet of the Centerview Partners, consistently
massive surge in valuations for young pushed Celgene to pay more for the
It turned out to be a mistake that cost
biotech companies, a number of which company during months of cat-and-
almost $7bn. When Celgene’s chief
have been sold for ever richer premi- mouse discussions.
executive, Bob Hugin, announced his
ums. In February of this year, Celgene
company was buying Receptos, a Cali-
Former Top Gear hosts The Celgene-Receptos deal comes returned to the negotiating table, offer-
fornian biotech, for $7.2bn earlier this
hit the road with Amazon amid a mergers and acquisitions boom ing to pay $193 per share. At that point
month, his jubilation must have been
in the broader healthcare sector, where six other potential acquirers were con-
tempered by the knowledge that he
Amazon has signed up the departing $390bn of transactions have been tacted by Centerview, Receptos’s finan-
could have bought it for a fraction of
presenters of BBC’s Top Gear show as announced so far this year, according to cial advisers.
the price less than two years ago.
internet groups continue to encroach Thomson Reuters. By April, several media outlets
on the terrain of traditional Celgene came within touching distance In the 21 months between Celgene reported rumours that Receptos was up
broadcasters. The world’s largest of buying Receptos in October 2013, walking away and coming back to ink a for sale, pushing its shares as high as
online retailer said it had signed when the company’s market capitalisa- deal, Receptos’s main drug, Ozanimod, $203. Receptos executives pressed Cel-
Jeremy Clarkson, Richard Hammond tion was just $550m, according to a scored several big successes in clinical gene for more cash. In May, Celgene
and James May to present a television securities filing. trials for ulcerative colitis, and relapsing again walked away.
series that will premiere in 2016. The pair got as far as exchanging multiple sclerosis. The apparent effi- The deal was revived last month when
People familiar with the situation told drafts of a merger agreement, but Cel- cacy of its drug, which is still being Mr Hugin phoned his counterpart at
the Financial Times that the deal was gene pulled out at the eleventh hour. On tested in large, late-stage trials, pushed Receptos, Faheem Hasnain, leading to
worth $250m for 36 episodes. that day, the Receptos share price was its share price steadily higher. Celgene making a $230 per share offer,
Report i PAGE 13 $29.97; Celgene ended up paying $232. The securities filing also details how which it sweetened to $232 a fortnight
The cost of Celgene’s procrastination Receptos and its financial advisers, before signing the deal.

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2 ★★ FINANCIAL TIMES Friday 31 July 2015


Greece EU oversight

Tsipras wins battle with Syriza’s far left Schäuble in

push to limit
September congress to party referendum on the bailout to be
held immediately was dropped after
charged debate signalled that Left Plat-
form, which supports an end to auster-
month after a bruising meeting with
fellow EU leaders, Mr Tsipras has had to
reforms before they will release the first
tranche of aid payments.
powers of
examine bailout as talks
reveal party divisions
objections by Panagiotis Lafazanis, the
premier’s sharpest critic and leader of
ity and a Grexit from the euro, would
continue to oppose a fresh bailout.
contend with rising discontent from
Syriza’s left flank. Left Platform has
If Athens and its bailout creditors can-
not reach a deal by August 20, when a
the rebellious Left Platform, the party’s Earlier yesterday, Mr Tsipras had staunchly opposed the reforms tied to €3.2bn bond held by the European Cen-
KERIN HOPE — ATHENS internal opposition. addressed the central committee pro- the bailout, fuelling speculation it might tral Bank becomes due, the EU will have
“How many referenda are we going to posing the yes-or-no vote on the bailout break from the party and leave Mr to provide Greece with a second bridge JEEVAN VASAGAR — BERLIN
Alexis Tsipras won a battle early this hold? We’ve already done one and we for Sunday. “Anyone who wants a differ- Tsipras without a governing majority. loan. But that would come with its own ANNE-SYLVAINE CHASSANY — PARIS
morning with a mutinous far-left fac- won with 62 per cent of the vote,” said ent government or a different premier Mr Lafazanis has openly argued that conditions, and might force Mr Tsipras
tion in his governing Syriza party after a Mr Lafazanis, a former communist who should say so,” said Mr Tsipras, making Greece should have brought back the to propose another round of reforms to Wolfgang Schäuble, Germany’s finance
day of tense discussions that laid bare was sacked as energy minister in a clear he viewed a vote to be a judgment drachma. Earlier this week, he told Greece’s parliament within weeks. minister, is proposing to strip the Euro-
deepening divisions within the party cabinet reshuffle this month. on his tenure as prime minister. “Those supporters that “an exit from the euro “Leaving the euro without any possi- pean Commission of some of its core
over a new €86bn bailout being negoti- He was referring to the No vote in a who believe this is the worst memoran- . . . in spite of all the dark propaganda, bility of economic support, and without oversight powers in an effort to avoid
ated with Greece’s creditors. national referendum on July 5 on a bail- dum [bailout] of all should say so now.” would in no way be a disaster”. foreign exchange reserves, would mean politicising EU decision-making at a
The prime minister’s proposal to hold out plan the government had already Greek radio and television stations The threat from Mr Lafazanis is com- a huge devaluation, harsh austerity and time when the executive body has
an extraordinary party congress in rejected, a result that boosted Mr interrupted their regular programmes plicating Mr Tsipras’s already difficult further recourse to the International touted its new partisan role in Europe.
September to examine the bailout once Tsipras’s standing at home even though to broadcast Mr Tsipras’s speech live task of finalising a new rescue pro- Monetary Fund for support,” he said. The commission has quasi-judicial
it has been completed was approved by he accepted a new bailout on harsher from the party gathering at an Athens gramme that is deeply unpopular in “Anyone who doesn’t accept this is authority over some of the most sensi-
Syriza’s 200-strong central committee terms a week later. cinema — a sign of how the meeting was Greece. Making matters more challeng- wilfully blind or is hiding the truth.” tive EU-wide decision-making, particu-
last night without resort to a roll-call The premier appeared to have won a seen as critical to the country’s stability. ing, he is also facing demands from Additional reporting by Peter Spiegel in larly in the area of merger approvals and
vote. Mr Tsipras’s earlier suggestion of a breathing space but last night’s highly Since agreeing to the bailout this creditors for even more economic Brussels antitrust monitoring — powers that
could be moved to independent bodies
under Mr Schäuble’s plan.
Berlin has long called for the euro-
zone’s budget rules to be triggered auto-
France. Tunnel chaos matically when a country breaches EU
debt and deficit ceilings, and has com-

Calais plained bitterly that France has been

given repeated waivers by the commis-
sion, despite violating those limits for

years — waivers some have viewed as
politically motivated.
Mr Schäuble’s proposals, reported by
the newspaper Frankfurter Allgemeine

hold on to Zeitung and partially confirmed by the

German finance ministry, are part of a
growing debate over the eurozone’s

dream of
future. Eurozone officials had been
planning to accelerate moves to over-
haul the zone if Greece was forced out of
the currency union, as a way to convince

England ‘A clear signal [should

be sent] about the
stability and integrity
Fears rise that people will take of the eurozone’
ever greater risks despite financial markets that the rest of the
extra security measures bloc was pulling closer together and
would not lose another member.
But the fraught debate over Greece at
the July summit that led to a bailout
Night has fallen over Calais and agreement has convinced many govern-
Muhammed’s long wait is finally over: ments they must still act despite the
he warms his hands over a campfire one Greek deal, especially after what many
last time, wraps a blanket tight around countries feel was Berlin’s high-handed
his head for warmth and walks towards role in the talks.
a barbed wire fence separating him Paris has pressed for a eurozone over-
from railway tracks leading to England. haul and, in a recent interview in the
“In fifth grade, we learnt about French police In the meantime, the cost to business too much to go back now,” he says. “Any- There are increasing signs of perma- Financial Times, Pier Carlo Padoan, the
Africa,” says the 31-year-old. “Then we face migrants at is rising: the disruption in Calais is way, there is nothing to go back to.” nence in Calais’s jungle, which is carved Italian finance minister, called for a
learnt about the world, about England the Eurotunnel estimated at £250m per day in lost trade His obsession with England is typical into national groups — Sudanese, Ethio- rapid move to a full political union.
and about democracy. England is a good site in Coquelles, for UK businesses cut off from a vital of the vast majority of migrants in pians, Eritreans and Afghans — like a Differences are emerging over the
place.” near Calais, on transport artery. Calais. They say that seeking asylum is miniature map of global human con- way forward. Paris and Rome are
Migrants such as Muhammad have Wednesday Like Muhammed, who came from relatively easy and quick in Britain flict. On one side, Eritreans have built a emphasising a pooling of resources,
been passing through the northern night. One man Ethiopia, most of the migrants in Calais compared with France or other EU church — complete with a cross-topped either in the form of a eurozone budget
French port for years, viewing it as the was killed by a are on a one-way ticket, fleeing from countries. spire — from wood and polythene. or a common EU unemployment
penultimate stop of a journey that truck this week war and violence back home. Kamel, a They also say that it is easier to find Afghans such as Mr Ali pray five times scheme, while Berlin is focusing on giv-
typically spans thousands of miles, as he crossed a robust 28-year-old wearing a baseball informal work — in part, because the a day in a mosque covered in green plas- ing the zone’s rules more bite and less
often in perilous conditions. road — Philippe Huguen cap and a “Harvard”-stamped T-shirt, economy is growing but also because tic sheeting. Inside its dark interior, a interference from political forces.
But this week Britain has resembled a AFP/Getty Images
left his native Syria six weeks ago after there is no ID card requirement. small group of migrants lie asleep on The German finance ministry said Mr
fortress desperately trying to keep out his mother was killed in fighting and his Besides, most speak at least some carpets while another stacks copies of Schäuble first raised his ideas at a meet-
thousands of migrants from Africa, the home was destroyed. English, which makes the UK their the Koran in the corner. ing of his EU counterparts in Brussels on
Middle East and beyond striving to He says he spent a total of €8,500 to natural destination. For the great majority, however, stay- July 14, where he emphasised the need
overwhelm the defences of the Channel get to Calais, paying different people on Not everyone leaves, though. For the ing in Calais seems about as desirable as to send a “clear signal about the stability
tunnel by sheer force of numbers. On a journey through Turkey and Greece past three months, Mohammad Ali, a returning home. Mahammed, a 19- and integrity of the eurozone”, against
Monday night, 2,000 people stormed that included a hazardous two-day trek 65-year-old Afghan former school year-old from Sudan, says that it has the backdrop of the Greek crisis.
the tunnel site seeking to jump on to through the Serbian mountains before teacher, has holed up in the notorious taken him a year to get this far. His 10 The German proposal is not aimed at
trains bound for the UK. Another 1,500 reaching Austria and Germany. “jungle”, the 18 hectares of Calais scrub failed attempts at crossing have ended weakening the commission but at safe-
tried again the night after; one man was But most migrants from Africa travel land where about 2,000 migrants now in beatings by the police, being pepper guarding regulatory independence at a
killed by a lorry as he crossed a road. through Sudan and on to Libya before sleep in makeshift shelters. sprayed and dumped miles from Calais, time when the EU body is becoming
Britain and France have pledged addi- paying more than $1,000 to be Fleeing from fighting in Afghanistan, he says. increasingly political, say people famil-
tional security measures and police to crammed into a small boat that where he left his wife and eight children, ‘English But none of that has quelled his drive iar with Mr Schäuble’s thinking.
protect the tunnel. But Christian transports dozens of people at a time to Mr Ali had his gaze fixed on Dover. But is my to get to England, where he says he Mina Andreeva, a commission
Salomé of L’Auberge des Migrants, Italian shores. he now thinks it may be too dangerous wants to finish school — a promise he spokeswoman, declined to comment on
which provides basic aid to the migrants Struggling to feed a small fire in a and is considering applying for asylum favourite made to his subsistence-farmer parents the plan. She defended the more politi-
in Calais, says it will only push them to wooded area near the tunnel entrance, in France instead. language. back home. “English is my favourite cal style of the executive body under
take even greater risks. “This is not Kamel says that his 15 failed attempts so “I don’t like the risks you have to language,” says Mahammad. “I am Jean-Claude Juncker, its president, say-
security,” he says. “It just makes it more far to reach the UK have done nothing to take to get across,” he says. “I am not I am never never giving up.” ing: “It does not mean a political com-
dangerous for them to cross.” deter him. “I’ve come too far and spent going to commit suicide for this dream.” giving up’ Europe’s shame page 9 mission is more partisan.”

We Want Your Business Public accountability

Inquiry into banking crisis struggles to heal Ireland’s wounds

VINCENT BOLAND — DUBLIN how and why Irish banks crashed Recent appearances by leading politi- says politics may have trumped any
between 2008 and 2010. That disaster cians — especially Enda Kenny, the taoi- more considered conclusions, especially
The Galway races, Ireland’s leading
FT BUSINESS Tuesday, Friday & Saturday Business for Sale, Business Opportunities, Business cost Irish taxpayers €64bn in immedi- seach (prime minister) — have led to with a general election barely six
Services, Business Wanted, Franchises horseracing festival and a highlight of
ate recapitalisations of the banking sec- accusations that the inquiry has months away.
the social calendar, got under way this
Classified Business Advertising: tor. It forced Ireland to seek a €67bn descended into political point-scoring. “It has become a vulgar political
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UK: +44 20 7873 4000 | US: +1 212 641 6500 | ASIA: +852 2905 5554 bailout in 2010, which came with its own As the Irish Independent put it, the scrap, and we have learnt very little,” Mr
the event a prize networking opportu-
costs in the form of years of bruising inquiry “is at risk of becoming a source Ross says.
nity during the Celtic Tiger boom were
austerity. of public ridicule”. Yet there is another reading of the
FINANCIAL TIMES notable by their absence.
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Friday 31 July 2015 ★ FINANCIAL TIMES 3


GDP figures Ai Weiwei

US economy speeds up in second quarter UK under fire

for visa curb
Steady recovery as rise of However, revisions farther back sug-
gested the US has had an even more
willingness to follow through with its
hints of a rate rise. Policymakers have
BEA said, outpacing growth in imports
of 3.5 per cent and ensuring trade made a
rose at an average annual rate of 2.1 per
cent, 0.3 percentage points slower than
on dissident
2.3% comes after stronger
start to year than expected
sluggish recovery sincethecrash.
The US Federal Reserve has signalled
been counting on the slump in oil prices
to convince households to open their
positive contribution despite the strong
dollar. Business spending growth
previous estimates, the agency said. The
personal consumption expenditures
Chinese artist
that it remains on track to raise interest wallets, yet thus far figures have remained weak, however, with invest- price index average rose slightly faster
SAM FLEMING — WASHINGTON rates from near-zero levels since 2008, reflected caution. ment excluding housing falling 0.6 per during the period, rising 1.4 per cent
in part because of “moderately” expand- Janet Yellen, the Fed chair, this month cent, the weakest since 2012. Higher first instead of 1.3 per cent. JAMIL ANDERLINI — BEIJING
The US economy accelerated in the sec- ing economic activity. noted that households are starting to quarterinvestment drovetherevisionin The two biggest areas contributing to JAMES PICKFORD — LONDON
ond quarter after a stronger start to the The statement left the door open to a splash out more on big-ticket items such growth up, along with inventory spend- the overall revision down were con-
year than previously estimated, accord- rise at its next meeting in September as cars. Confirming that evidence, the ingandresidentialinvestment. sumer spending, where average annual Members of parliament, campaigners
ing to official figures that point to a amid predictions of continued improve- savings rate fell in the second quarter to The BEA figures gave a slightly firmer growth was revised down two-tenths of a and leading arts figures have attacked a
steady if unspectacular recovery. ment in the jobs market and rising GDP. 4.8 per cent from 5.2 per cent in the first. snapshot of inflation, with the price per cent to 2.3 per cent over the period, decision by the UK government to deny
Gross domestic product rose by an The BEA yesterday said the accelera- “The improving jobs market, along- index for personal spending rising at a and government spending, which fell 0.9 a six-month business visa to Ai Weiwei,
annualised 2.3 per cent in the quarter to tion in the second quarter of 2015 was side the boon to households from low 2.2 per cent pace in the second quarter. percentandisnowdown1.6percent. the Chinese dissident artist, preventing
June, the Bureau of Economic Analysis driven by firmer household spending, inflation and falling oil prices, has been Core prices were up 1.8 per cent. The first 23 quarters of the recovery to him from visiting London at the same
said yesterday, marginally shy of Wall coupled with an upturn in exports, and key to the economy’s ability to sustain While the US performed better than thefirstquarterof2015nowshow2.1per timeasPresidentXiJinping.
Street forecasts of 2.5 per cent growth. higher public outlays. Personal spend- strong growth,” said Chris Williamson, estimated in the first part of the year, cent growth instead of 2.2 per cent, said
A previously estimated 0.2 per cent ing increased 2.9 per cent in the second an economist at Markit. “The new data, the BEA also issued revised figures that Jim O’Sullivan of High Frequency Eco- Salman Rushdie, the novelist, led criti-
fall in first-quarter GDP was replaced by quarter, a sharp acceleration from the and the first quarter revisions in partic- showed growth was lower than esti- nomics. “The pace of growth remains cism of the government yesterday after
an estimate of 0.6 per cent growth, in first quarter, when it gained 1.8 per cent. ular, remove a worrying sense of doubt mated between 2012 and 2014. extremely weak by past recovery stand- Mr Ai said the British embassy had
revisions that suggest a smaller impact Consumers’ willingness to spend about the health of the economy.” Measured from the fourth quarter of ards, but it appears to be sufficient to restricted his entry visa to 20 days for
from bad weatherandaport strike. more will be a key factor in the Fed’s Real exports grew by 5.3 per cent, the 2011 to the same period of 2014, GDP keepunemploymentcomingdown.” failing to declare a criminal conviction.
The decision means that the artist,
who was abducted, detained and inter-
rogated by Chinese security agents but
never charged, will miss part of his exhi-
Stock market upheaval. Propaganda war bition at the Royal Academy in London
from September to December.

China’s cheerleading fails to convince Mr Rushdie said: “I’m disappointed to

hear about Ai Weiwei’s UK visa restric-
tion and I hope this decision will swiftly
be reversed.” The Royal Academy said it
was “concerned”, while Labour politi-
In terse late-night statements, posted cians and campaign groups urged the
As Beijing’s rhetoric grows in question and answer format, the Home Office to change its mind.
more strident, investors are CSRC has pledged to pursue all “rele- Mr Ai published a copy of the rejec-
vant clues” as it pursues stock “dump- tion letter from the British embassy in
less inclined to believe it ing” in contravention of its July 8 decree Beijing yesterday. Instead, officials
banning listed companies’ large share- granted him a visa to the end of Septem-
holders and directors from selling their ber, weeks before an official visit by Xi
shares. Jinping, the Chinese president.
China’s stock market regulator began its Investors have also been urged to
most recent press briefing with a telling report any such “malicious” activity to
instruction for the mostly local journal- official hotlines, in a throwback to the
‘The government has said
ists in attendance. “We have a require- Cultural Revolution and other political repeatedly that freedom of
ment concerning speculative reports,” campaigns in which the Chinese Com-
said the China Securities Regulatory munist party encouraged people to
speech and expression are
Commission. “They must first be con- monitor and inform on their neigh- key British values’
firmed by the CSRC in order to prevent bours. “Where [malicious dumping] is
the spread of false information and mar- discovered, the punishment will be The letter said he had been denied the
ket disturbance.” severe,” the CSRC said after the 8.5 per six-month entry because “you have pre-
The warning was a reminder that as a cent fall on July 27. viously received a criminal conviction in
“national team” comprised of largely “The political system in place in China China,andyouhavenotdeclaredthis.”
state-owned entities struggles to shore is still essentially Leninist in its struc- The artist is known for his irreverent
up China’s stock market, the govern- ture, organisation, thinking and political statements and ingenious pub-
ment is orchestrating an equally impor- instincts,” says Steve Tsang, head of lic protests, and came to prominence in
tant cheerleading campaign involving a Nottingham university’s School of Con- the UK after his installation of eight mil-
broad array of state media outlets. temporary Chinese Studies. lion porcelain sunflower seeds in the
Illustrating just how delicate investor “The stock market is required to serve main gallery of London’s Tate Modern.
sentiment remains despite the govern- the people and the party and the party Yvette Cooper, the shadow home sec-
ment’s all-out propaganda war, the alone represents the people. So if the retary, has written to Theresa May,
Shanghai Composite Index experienced market goes the wrong way or ‘misbe- home secretary, seeking an explanation.
the second-largest points fall in its 25- haves’, it is unpatriotic and should be Jodie Ginsberg, chief executive of
year history on the first trading day corrected. Anyone who drives or helps Index on Censorship, a campaigning
after the CSRC’s remarks. The 8.5 per the market ‘misbehave’ is a traitor.” body, said: “The government has said
cent fall on July 27 left the SCI just 200 But as the rhetoric coming from the repeatedly in recent months that free-
points above 3,500 — the level at which CSRC and official media outlets grows dom of speech and expression are key
the government’s rescue effort began in more strident, investors and analysts British values. The Home Office needs to
earnest on July 8. are less inclined to believe it. “Every- showthisindeeds,notjustwords.”
A move below the intervention point one’s smart enough to know that what Over the past few years human rights
would be embarrassing for the national the People’s Daily is saying, and what activists and government critics have
team led by China Securities Finance, Xinhua is saying, is just their job,” says become increasingly frustrated as David
the CSRC vehicle fronting a rescue effort A dancer for the Hong Kong Economic and Mr Chen at Gavekal Dragonomics. Cameron’s government has set off in
estimated to be worth at least Rmb2.2tn Trade Office, which rang the opening bell, “That has nothing to do with your own pursuit of the Chinese renminbi.
($350bn). One of the team’s key players, performs in the New York stock Exchange decisions about portfolio management.” Having angered Beijing in 2012 by
the Securities Association of China rep- this week — Spencer Platt/Getty Images “I look at the government’s actions having his photograph taken meeting
resenting more than 100 state-control- rather than words because the words the Dalai Lama, Mr Cameron has since
led brokers, has pledged not to sell have no meaning,” agrees Fraser Howie, been assiduous in courting Beijing. In
shares until the SCI has recovered to at Regulator inquiry sales by large shareholders to arrest a Avic’s major shareholders had a China securities expert who marvels at 2013 he indicated he had no plans for
least 4,500 points. Aerospace group probed market slide earlier this month, Mr Lin exceeded 5 per cent but that the the national team’s accumulation of further meetings with the Tibetan spir-
“Market confidence is extremely frag- promised his company would actively company had failed to make the assets over the past week, including itual leader, and sealed the rapproche-
ile,” says Chen Long, China economist at over share transactions buy shares to prop up the market. required disclosures. shares in one of the country’s largest ment later that year by taking Britain’s
Gavekal Dragonomics in Beijing. “The But in statements to the Shanghai Before the investigation was dairy companies. “They now own 5 per largest ever trade delegation to China.
government will continue buying but in China’s securities regulator is Stock Exchange, Avic Heibao, a listed revealed, Mr Lin cast his company’s cent of a dairy. What the hell does the Last year, Mr Cameron dismayed pro-
the long run they cannot really change investigating allegedly illegal share manufacturing subsidiary of Avic, has actions as part of a heroic struggle government need to buy 5 per cent of a democracy campaigners in Hong Kong
the trajectory.” sales at the country’s biggest state- said it is being investigated by the against foreign aggression. dairy for?” with an apparent reluctance to criticise
Yesterday morning, the SCI fell below owned aerospace company, which is led securities regulator along with two Owing to Beijing’s strict quota The problem for the Chinese govern- Beijing over its attempts to change the
3,760 before closing at 3,787 at the mid- by a man who blames China’s stock shareholding companies on suspicion system, combined foreign holdings ment is that the longer the SCI flirts with voting system in the province. George
day break. market woes on “malicious” foreigners. of illegal share transactions. comprise barely 3 per cent of the 3,500 points rather than 4,500, the Osborne, chancellor of the exchequer, is
Reflecting government concern that Lin Zuoming, chairman of Aviation The disclosure said Avic Capital, the Chinese equity market, making it highly more inclined investors will be to take forging trading links. But his move to
the SCI is more likely to fall through the Industry Corporation of China (Avic), trading arm of Avic Heibao, had fired its unlikely global investors would be able advantage of the exit opportunity it is sign up to the Asian Infrastructure
3,500-point floor than soar past the has repeatedly said the collapse in general manager, Yang Shengjun, after to crash the market. Mr Lin could not be providing. As one Beijing-based invest- Investment Bank, seen as a Chinese rival
securities association’s 4,500 target, this Chinese share prices was part of a it received word of the investigation. reached for comment. ment adviser recommends: “If they are totheWorldBank,upsettheUS.
week the CSRC has adopted language “sneak attack” carried out by foreigners Earlier this month, the Shanghai Jamil Anderlini, Beijing. Additional stabilising the market by stupidly going Mr Ai’s gallery in London, the Lisson
reminiscent of Maoist campaigns to undermine the Communist party. Stock Exchange also issued a reporting by Christian Shepherd in long, then you should sell.” Gallery, said: “We hope this decision is
against “capitalist roaders” and other After the government banned share regulatory notice saying share sales by Beijing Additional reporting by Wan Li and based on a misunderstanding and will
“bad elements”. April Ma be quickly corrected.”

Central bank meeting Draft financial code

Russian business on tenterhooks over interest rate decision India to ensure central bank
COURTNEY WEAVER — MOSCOW cent of its value against the dollar since business, which sees it as a sign the bank and dollars,” said Andrei Artemov, a
control of monetary policy
May — attention is turning to a central is prioritising the rouble’s stability and fashion designer. “We are always think-
Izvestiya, the Kremlin-friendly Rus-
bank policy meeting today. lower inflation over economic recovery. ing now about how to cut costs.”
sian daily, is known primarily for its
After raising its benchmark rate from High interest rates are hurting busi- On Wednesday, the central bank VICTOR MALLET — NEW DELHI the Bank of England’s, except that most
coverage of politics and the military. AND JAMES CRABTREE — MUMBAI
10.5 per cent to 17 per cent in a surprise ness, said Siegfried Wolf, chairman of announced that it had halted its daily members would be appointed by the
Yet this week, it splashed with a front-
overnight rise last December, the cen- Russian Machines, a subsidiary of Oleg foreign currency purchases after the The Indian government plans within central government, not by the bank.
page story it knew would really capti-
tral bank has lowered the rate at each of Deripaska’s Basic Element holding rouble lost more than 5 per cent of its months to entrench central bank direc- In a note yesterday, Capital Economics
vate its 230,000 Russian readers: the
its monthly policy meetings since Janu- group. “In Russia we have three to four value against the dollar in a week, a tion of monetary policy, to bury a con- described it as “a cause for concern given
future of the benchmark interest rate.
ary to the current 11.5 per cent. times higher interest rates than you reflection of the weaker oil price. The troversial proposal to grant the govern- the track record of previous govern-
Once a topic of interest primarily for In its front page story this week, Izves- purchases were meant to shore up Rus- ment of the day control over interest ments attempting to dampen the central
Moscow bankers and economists, the tia reported that the central bank’s sia’s international reserves. rates, according to officials. bank’s power and independence”. Under
future of the rate has become a national head, Elvira Nabiullina, had warned 17% 11.5% Ivan Tchakarov, chief economist at the code, the RBI would also be responsi-
sport after a year of wild currency fluc- Russian business leaders at a closed- Benchmark rate The current rate Citi in Moscow, said he believed the cen- “The paramount principle is that we ble for meeting inflation targets despite
tuations, an emergency rate rise and door session last week that the central in December after following a series tral bank was more likely to cut rates have to have an independent central havingnocontrolofinterestrates.
worsening forecasts for growth. bank would not lower rates this week. a sharp increase of monthly now that it had stopped its daily foreign bank that is top-notch in its capability But Jayant Sinha, minister of state for
In recent months, the central bank The central bank does not publicly from 10.5% reductions currency purchases this week. Other- and its abilities to take the right deci- finance, has described the draft as “sim-
and Russian business have been comment on monetary policy in the wise it would suggest the central bank is sions for India with a long-term view,” ply an input” to the debate and not gov-
engaged in a fairly public tug of war over days leading up to its monthly policy have in the countries you’re competing overly concerned about inflation and said one government official. “Whatever ernment thinking. “The proposed mon-
monetary policy. The central bank has announcement and Izvestiya’s scoops with. The banks themselves have to bor- rouble volatility, he said. we do will be with the full agreement of etary policy committee of the RBI will be
made clear that lowering inflation and a have sometimes been wrong. A majority row money from the central bank at Izvestiya said businessmen at the cen- theRBI[ReserveBankofIndia].” setting the rates, not the government,”
relatively stable currency are its main of analysts surveyed by Bloomberg fore- double digit [rates]. This is a very hard tral bank’s meeting had pleaded with Ms Last week, India’s financial sector leg- he said this week. But there is a faction in
priorities, while the latter fears higher cast the central bank would go ahead exercise to be successful.” Nabiullina to lower interest rates fur- islative reforms commission released its New Delhi that wants to curb the RBI’s
rates are stymieing economic growth. and lower rates by 0.5 percentage points Others argue the rouble’s recent vola- ther. It said the central banker offered latest version of the draft Indian Finan- independence. “It’ll be in limbo for a
With the rouble in the midst of another as previously predicted. But fears rates tility has been hard on Russian business only the hope that rates would be cut by cial Code, which included a plan for a while. I can’t see it resolving very
plummeting spiral — it has lost 15 per could remain on hold have angered owners. “All our materials are in euros a symbolic 0.5 percentage points. monetary policy committee similar to quickly,”saidaformercentralbanker.
4 ★ FINANCIAL TIMES Friday 31 July 2015


Airliner search Eastern Europe

Beach debris ‘major lead’ in hunt for MH370 Russian jets

test Nato’s
Wreckage washed up on Boeing 777 aircraft. “Reports suggest
that the debris is very likely to be from a
The Malaysians, Australians and Chi-
nese have been conducting an extensive
Julien Delarue, who works for a local
newspaper, posted a photograph of the
communication from the pilots. Later
analysis of satellite signals suggested the
Baltic airspace
La Réunion raises hopes
it is from missing aircraft
Boeing 777, but we need to verify
whether it is from flight MH370. At this
search for the aircraft off the west coast
of Australia since it disappeared on
suitcase on Twitter. It is not known
whether the luggage came from MH370.
aircraft had then turned south and
headed out over the Indian Ocean.
response time
stage it is too early to speculate,” Mr March 8 2014. The jet was carrying 239 The Australian Transport Safety Assumptions were made about the
JAMIE SMYTH — SYDNEY Najib wrote on his official blog. people on a flight from Kuala Lumpur to Bureau said yesterday that the discov- aircraft speed and height and it was
ROBERT WRIGHT — NEW YORK If the part is from a 777 twin-engined Beijing. ery of the wreckage on the island was decided it was likely to have ditched in SAM JONES
AND MARK ODELL — LONDON jet, it is highly likely to be from MH370, Warren Truss, Australia’s deputy “not inconsistent with the current the sea somewhere off Australia’s west DEFENCE AND SECURITY EDITOR
Malaysian officials expressed confi- since other known losses of the aircraft prime minister, described the discovery search location” which is 4,200km east coast when it ran out of fuel. Fighter jets from Nato’s Baltic air polic-
dence that a piece of aircraft debris type — including last year’s shooting of the debris as a significant develop- of La Réunion. The search teams are A multinational force of ships and air- ing mission have scrambled to inter-
washed up on a beach on the Indian down of Malaysia Airlines Flight MH17 ment. “It’s the first real evidence that working on the theory that MH370 craft have spent months searching a cept 22 Russian aircraft in multiple for-
Ocean island of La Réunion is from a over Ukraine — occurred over land. there’s a possibility that part of the air- crashed within a 120,000 sq km area of large area of the Indian Ocean without mations in the past week, including two
Boeing 777 jet, increasing the likelihood Mr Najib said the piece of debris craft may have been found,” he said. But the southern Indian Ocean, 1,800km success. Experts said the discovery of of the largest interceptions over east-
it comes from flight MH370, the Malay- would be sent to a laboratory in Tou- he cautioned: “It’s too early to make that south-west of Australia. the wreckage so far from the theoretical ern European skies since tensions with
sia Airlines aircraft that disappeared 17 louse, France, for inspection by investi- judgment, but clearly we’re treating this If the part is from the missing flight, it crash zone was consistent with the Moscow began to rise 18 months ago.
months ago without a trace. gators from the Bureau d’Enquêtes et as a major lead.” could provide critical clues to the fate of direction of the ocean currents.
Malaysia’s prime minister, Najib d’Analyses. La Réunion is a French terri- There were also unconfirmed reports MH370: radar tracking showed the air- The undersea search for Flight Nato aircraft have had to conduct emer-
Razak, confirmed earlier comments by tory east of Madagascar, which under that a badly damaged piece of luggage craft changed course to the west after MH370 is one of the most complex and gency deployments on more than 250
one of his ministers that the piece of international law makes the BEA the has been found close to where the debris heading north-east from Kuala Lumpur expensive in aviation history, costing occasions this year over Europe, offi-
wreckage was almost certainly from a lead investigative body. washed up on La Réunion. Journalist en route to Beijing without any further about $150m to date. cials told the Financial Times, the high-
est number for an equivalent period
since the end of the cold war.
The alliance’s Baltic air policing mis-
sion has conducted 120 of those scram-
Southern Africa. Wildlife protection bles. The Europe-wide figure compares
with 400 events for the whole of 2014,

Roar of anger over Cecil puts focus on game hunting marking what Nato sees as a steady
growth in the size and seriousness of
Russia’s aerial provocations.
“In the last year, Russia’s air activity
close to Nato borders has increased in
rhino. But Alicia Craw, the international quantity and complexity,” Nato said.
Conservationists and shooting head of wildlife campaigns at World “Russian aircraft often fly without their
groups are split on the best Animal Protection, says there are fewer transponders switched on, without fil-
than 35,000 lions in the wild, or less ing flights plans and without communi-
method of sustaining species than 7 per cent of the estimated “origi- cating with air traffic authorities.”
nal” population. But hunters insist their Transponders allow civil aviation
industry helps conserve animal num- authorities to locate aircraft easily.
KATRINA MANSON — NAIROBI bers and protect their environments. Russia has been careful not to breach
”You cannot hunt if you don’t have an Nato airspace, but the increase in activ-
When Cecil, Zimbabwe’s — and now animal,” says Abdukadir Mohamed, ity can be seen as an attempt by Moscow
the world’s — most famous lion died 40 secretary-general of the Tanzania Hunt- to test the alliance’s response times.
agonising hours after being shot by an ing Operators Association, who argues The European Aviation Safety
American dentist, he was at least lucky that hunters are conservationists by Agency, a civilian body, ruled in April
enough to have spent the previous 13 default because they rely on big wildlife that Russia’s flights pose a “high risk” to
years roaming free. populations for their income. He points civil aviation.
By contrast as many as 6,000 lions in out that they also put money back into In January, the UK summoned the
southern Africa are bred and raised in communities as well as protecting ani- Russian ambassador to London for a
captivity for the purpose of being mals and environments from poachers dressing down after Russian nuclear-
hunted by wealthy tourists. in a bid to boost animal numbers. capable bombers disrupted civilian air
The killing of Cecil by Walter Palmer, Mr Mohamed says that while a licence traffic over the English Channel.
the Minnesota dentist who has gone into to hunt lions costs $5,000, the total cost Last October, Nato states were forced
hiding after he provoked outrage of a hunting safari can run from $50,000 to deploy emergency fighters in multi-
around the globe, has shone a spotlight to as much as $200,000 and earns the ple locations over a 48-hour period in
on big game hunting in southern Africa, Tanzanian government $12m each year. response to “significant military
an industry that Peter Knights, execu- Kenya, which relies on safaris for manoeuvres” on the margins of Nato
tive director of the US-based WildAid, much of its tourism revenues, banned airspace.
estimates is worth around $1bn a year. big game hunting soon after independ- Nato has doubled the size of its Baltic
Cecil was allegedly lured illegally ence and more recently went on to ban air policing mission this year as a result
from a game reserve in Zimbabwe and hunting game birds too. But some peo- of Moscow’s growing aerial probing. The
two men have been charged over his ple are calling for a rethink. mission, which has been running for the
death and may face poaching charges in “I think hunting on the continent is past decade, involves the provision of
a Zimbabwean court, while Mr Palmer hopelessly corrupt but if it’s correctly combat aircraft to the Baltic states,
insists he did not know he was breaking managed, it’s a useful tool to get revenue which do not possess their own air
the law. Still, hunting is legal in parts of back into supporting conservation,” forces.
Zimbabwe, as well as in Mozambique, says Michael Dyer, a former hunter Two Nato nations are required to con-
Namibia and Tanzania. turned conservationist who has tribute fighters to bases in Estonia and
Meanwhile, in South Africa there are recently introduced rhino to his ranch Lithuania for the mission on a six-
200 farms whose main purpose is to in the Kenyan highlands. He employs a month rotational basis. Italy and France
breed lions for wealthy tourists to come full-time team of guards akin to a well- are voluntarily stationing further fight-
and spend hundreds of thousands of armed militia to protect 22 rhino. ers at Siauliai in Lithuania and Malbork
dollars to shoot them. About 900 are As the reaction to Cecil has shown, the in Poland.
killed in legal hunts each year, according issue remains emotive. Born Free a lion On Wednesday, Norwegian F-16 fight-
to Pieter Potgieter, the chairman of the charity, is among those joining a cam- ers stationed in Lithuania were scram-
South African Predator Association. paign to stop the importation of hunting bled to intercept 12 Russian aircraft.
“The rest are kept for tourist purposes trophies. Emirates airlines recently The aircraft appeared to be flying as part
while some are exported, mostly to the responded to popular pressure and of a training mission but had turned off
Middle East and Asia,” he says. In the instituted a ban. But hunters are win- their transponders.
The practice has become known as crosshairs: ning some of the arguments. Earlier this Last Friday, British Typhoon fighter
canned hunting. Cubs are usually sepa- protesters rally month South African Airways reversed jets stationed at Amari in Estonia were
rated from their mothers early in their outside Walter its ban on the transport of lion trophies deployed after Nato air defences picked
lives and kept for petting until they Palmer’s clinic and skins after intense lobbying. up 10 Russian aircraft approaching Bal-
become a threat to tourists. Once they in Minnesota “We informed them of the impor- tic airspace across the Gulf of Finland.
are fully grown they are hunted. this week, tance of the industry to South Africa,” The alert is the single largest intercept
Mr Potgieter and other canned hunt- above, after he Mr Potgieter says. “And we told them British airmen have performed in the
ing advocates say it is critical for sus- shot Cecil, left. that if it’s government policy to support region. The Russian aircraft, which
taining the species. “By hunting captive The lion’s death the industry why should the national included four MiG-31 fighters, were
bred lions, the hunting pressure is taken has provoked carrier oppose the policy?” tailed closely by the Typhoons as they
off the wild lions,” he says. “There’s a questions over But Mr Knights is among those hoping flew from Russia towards the enclave of
direct link between the decline in the big game that the photograph hunters will win Kaliningrad. They had also switched off
hunting of wild lions and the increase in hunting by out over their gun-toting counterparts. their flight transponders.
the hunting of captive lions.” wealthy tourists, “It takes a lot more cojones to go after The incident is the 18th so-called QRA
Indeed, wildlife groups acknowledge right a big animal armed with just a camera — quick reaction alert — from Amari for
that in South Africa the population of Eric Miller/Reuters; AFP/ than a high-powered rifle,” he says. the Royal Air Force this year, marking a
wild lions appears to have stabilised. Zimbabwe National Parks
Additional reporting by Barney Jopson in significant increase in activity.
And lions, while regarded as at risk, are Washington Last year the RAF scrambled 13 times
not as endangered as other species, like Notebook page 8 in Estonia.

Mumbai terror attack. Capital punishment

India executes accountant for helping plan 1993 bombings but chief suspects remain at large
day that became known as “Black Fri- have condemned the execution, with minister, tweeted: “Saddened by the In 1980, India’s supreme court months after Kasab’s execution, Afzal
Yakub Memon’s hanging has day”, 13 bombs exploded in crowded, some saying the hanging offered the news that our government has hanged a affirmed the constitutionality of the Guru, a Kashmiri convicted of involve-
reinforced the view New Delhi high-profile locations, including the “appearance” of justice rather than its human being. State-sponsored killing death penalty, but said it should be used ment in a 2001 attack on the Indian par-
Bombay Stock Exchange, the Air India substance. diminishes us all by reducing us to mur- only sparingly — in the “rarest of rare liament was also hanged.
seeks retribution not justice building, the passport office, cinema Bollywood star Salman Khan even derers too.” cases”. It subsequently clarified that Last January, the supreme court com-
halls, markets and hotels. jumped into the fray last week, with a India’s judicial and intellectual elite death was warranted to assuage “the muted the sentences of 15 death row
The main accused remain India’s two controversial tweet suggesting Yakub has grown increasingly uncomfortable collective conscience of the commu- prisoners after deciding the govern-
“most wanted” men — former Mumbai Memon was being executed in lieu of his with the use of the death penalty, even as nity” for particularly shocking crimes. ment had unduly delayed in ruling on
India’s use of the death penalty was the underworld figure Dawood Ibrahim, brother, while others have suggested the wider public — fed up with seemingly A total of 1,600 convicts have been their mercy petitions. The court subse-
subject of renewed debate yesterday, and Mr Memon’s brother, Mushtaq authorities were seeking retribution pervasive lawlessness — appears hungry sentenced to death in India since 2000, quently commuted the death penalty
after authorities hanged a 53-year-old “Tiger” Memon. Both are believed to be and vengeance rather than justice. formorewidespreadapplication. according to the National Law Univer- for three of the assassins of former
Muslim accountant convicted of living in Pakistan, protected by Paki- The debate over the details of Mr sity and the National Legal Aid Services prime minister Rajiv Gandhi on the
involvement in a series of bomb blasts stan’s military intelligence, which New Memon’s case have spilled over into a Authority. But before yesterday’s hang- same grounds.
that killed 257 people and injured Delhi accuses of helping to orchestrate wider public discussion over the merits ing, only three death sentences had Mr Memon’s execution has reinforced
another 700 in Mumbai in March 1993. the bombings. of the death penalty. been carried out. perceptions that New Delhi is pushing
Yakub Memon, who was found guilty Members of the ruling Bharatiya “A truly lasting solution to the moral After the 2004 hanging of a security ahead with the execution of Muslims
of helping to plan and finance the explo- Janata party said Yakub Memon’s exe- dilemma that each instance of capital guard for the rape and murder of a 14- convicted of political violence, while
sions but who had maintained his inno- cution delivered justice for the victims punishment poses will be to abolish it year-old schoolgirl, New Delhi imposed going softer on Hindus.
cence, was hanged at 7am yesterday, of the attack, and Mukul Rohatgi, the altogether and replace it with a sentence an unofficial moratorium on enforcing “The standard is so subjective,” says
after India’s supreme court rejected his attorney-general, urged that other of imprisonment for the rest of the con- the death penalty. That ended with the Karuna Nundy, a supreme court lawyer
last-minute mercy petition. pending death penalty cases be acceler- vict’s life,” the Hindu newspaper wrote 2012 execution of Ajmal Kasab, the lone opposed to the death penalty. “The
The 1993 bombings were the largest ated to deter further acts of terrorism. in an editorial, calling the hanging surviving Pakistani gunman from the death penalty is bad even when uni-
co-ordinated terror attack ever on Human rights activists, prominent “inhuman and unconscionable”. Indians protest against the death terror attack on Mumbai’s five-star formly applied but when it’s selectively
Indian soil. Over a two-hour period on a judicial figures and leading newspapers Shashi Tharoor, a former Congress sentence in New Delhi this week hotels and train station in 2008. Four applied, that is when it really shocks.”
Friday 31 July 2015 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Friday 31 July 2015


In the wake of the NSA surveillance scandal, US tech companies are shielding more data from the
government’s eyes. But US and European officials say these steps make it harder to track terrorists.
By Hannah Kuchler and Richard Waters

Going dark
rowing impatient with the The fight over encryption has echoes
restrained debate among of the 1990s, when the US government
the Washington policy pushed for the adoption of a silicon chip
wonks, the bearded Sili- it could decrypt remotely. This was
con Valley engineer stood before the US launched the “war on ter-
up and took aim at the man on the ror”, but officials were already arguing
stage. for more power to fight terrorism and
Admiral Mike Rogers, the director other crimes such as kidnapping.
of the National Security Agency, had The Clipper chip, designed for voice
just made his case for a new legal communications, used an encryption
framework to allow the government algorithm invented by the NSA. The key
to monitor data surging through US would be put in escrow until the govern-
computer networks. Rising to chal- ment gained legal authority to listen to a
lenge him was Alex Stamos, then the conversation. But the chip, announced
top security engineer at Yahoo, who in 1993, was defunct three years later
denounced the idea that tech compa- after a backlash from anti-surveillance
nies should build “back doors” into campaigners and a lack of adoption
their systems to give governments from manufacturers.
access to information. The “crypto war” of the 1990s was
“If we’re going to build defects, only a shadow of what it is now, Mr Diffie
back doors or golden master keys for says. “Cryptography is extremely
the US government, do you believe — important to the whole digital economy.
we have about 1.3bn users around It has developed dramatically since the
the world — we should do [the same] last time we fought this battle, a little
for the Chinese government, the Rus- less than 20 years ago.” Encryption is
sian government, the Saudi Arabian now much harder for governments to
government, the Israeli government, resist because it is now “in very, very
the French government?” Mr Stamos broad use”.
asked. The cyber security threat is also much
Mr Rogers initially tried to laugh off greater, with nation states including
the attack. But then he struck back China and Russia pouring resources into
against the tech industry’s claims of cyber espionage and well-funded organ-
responsibility to protect users from the ised criminal networks honing their
prying eyes of government. skills.
“This simplistic characterisation of But many in the tech world argue gov-
one side is good and one side is bad is a ernments may actually have more
terrible place for us to be as a nation,” access to information than they did
Mr Rogers said. “We have got to come to before encryption started to become
grips with some really hard, fundamen- standard. “I don’t think they are magi-
tal questions.”
The face-off in February was a dra-
matic demonstration of the impasse
‘We don’t own our
between the US government and Amer- customers’ data — we don’t
ica’s most innovative industry. The bat-
tle is over encryption — software that want to be in a situation
uses secret keys to protect credit card where we have to hand it
details, private emails and corporate
secrets from cybercriminals. While tech over to the government’
companies are embracing encryption, FT montage/Getty

Mr Rogers and top Obama administra-

tion officials are seeking the right to use
Who is encrypted? cally unable to solve crime any more,”
says Bruce Schneier, a cryptographer.
secret keys to track terrorists and other Service Company Monthly active user numbers Encrytion Encrypted from “We’re living in a world where there are
criminals. dozens of investigative, forensic tech-
Before Edward Snowden leaked WhatsApp Facebook 800m (Android users) End-to-end Nov 14 niques that have improved in the last
details of the NSA’s mass surveillance years — DNA, fingerprints, location.”
tactics two years ago, only a few technol- Gmail
ogy services used the tough type of
Google 900m HTTPS (end-to-end opt in due this year) Mar 14 No compromise in sight
encryption that scrambles information Yahoo Mail Yahoo 225m HTTPS (end-to-end opt in due this year) Jan 15 But with both sides staking out strong
so even the tech and communications positions, it is hard to see where a com-
companies cannot read it: Apple’s iMes- Facebook Facebook 1.4bn HTTPS Jul 13 promise will be found. Like many of the
sage and FaceTime, along with Micro- methods used to fight back against a
soft’s Skype. But after the revelations, iMessage Apple 450m (iPhone users*) End-to-end Jun 11 wave of cyber crime, attempts to deploy
the industry faced a backlash from con- encryption risks getting mired in
sumers who felt the tech groups were FaceTime Apple 450m (iPhone users*) End-to-end Jun 10 complex political and legal debates even
complicit in allowing their data to be as hackers power on, learning new
monitored. Now tougher encryption is Twitter direct messages Twitter 302m None na tricks.
fast becoming a standard — perhaps Google is set to provoke a new show-
offering consumers more privacy pro- Skype Microsoft 300m End-to-end for internet calls, Aug 03 down between law enforcement and the
tections, but also potentially posing not for calls to phones or chat tech industry this year with the release
challenges for law enforcement. of its own end-to-end encryption sys-
WhatsApp, the messaging app owned tem for use with its Chrome web
FT graphic Source: FT research * Estimate
by Facebook, turned on strong encryp- browser. People close to the project have
tion software for Android users late last played down its potential impact, claim-
year. Google and Yahoo are working on a information it moves wholesale cial officer — a measure he says that was Google for going too far with encryption. 10110100110101 ing that only a small number of users are
project to allow a similar level of secu- between its own data centres — and intended to reinforce trust and confi- Most recently, he told Congress that it 011CYBER010110 likely to want to use it.
rity in their email services by the end of launched a campaign to persuade oth- dence in the US company’s technology. was critical for his agency to be able to 11100110101011 Many of the company’s other services
the year. As a result, their users — the ers to use encryption as a default. Other data services used by busi- access communications to combat Isis, 0 I NSECURITY 111 rely on the ability to monitor a user’s
companies have a combined 2bn nesses have taken a similar stance. which is increasingly dependent on the 10100110101011 actions so it can provide relevant infor-
accounts — will have at least the option Sorry, can’t help you Dropbox, one of the most widely used internet. mation or advertising — an ironic
to encrypt their communication end-to- But if the greater use of technology “cloud” data storage services, has In Europe, the turnround from shock FT series reminder of just how slippery the issue
end by the end of the year. like this has made illicit government opened its platform to let users bring at US mass surveillance to demanding This is the last of of encrypting data has become. When it
Yet this kind of encryption can also surveillance and criminal hacking more their own encryption. Tech companies more rights for European governments five articles on meets their needs, even tech companies,
cyber security.
render invisible information that gov- difficult, it is the spread of so-called argue that such tactics guarantee both to read online communications, has To read the like governments, can see the necessity
ernment officials claim is vital to law “strong”, or end-to-end, encryption that the security of digital data and user pri- been swift and stark. French intelli- previous pieces, of setting some limits to the use of
enforcement and national security. In has really alarmed law enforcement vacy in the face of both government gence services have won sweeping pow- visit unbreakable encryption everywhere.
the words of James Comey, director of agencies. These systems take the tech- over-reach and increasingly sophisti- ers in a bill that legalised phone tapping Mr Stamos, who now works at Face-
the US Federal Bureau of Investigation, nology a step further and make it impos- cated cyber criminals. and email interception passed in May. cyberinsecurity book, blamed the crisis over encryption
the rise in encryption has meant that sible even for the companies that proc- As an executive at one big US tech David Cameron, UK prime minister, has on law enforcement reaching for what
huge swaths of the internet have “gone ess or carry the data to unscramble it — company explains: “We don’t own our proposed a complete ban on strong looked like an easy option — without
dark”, making it harder to track terror- therefore preventing governments from customers’ data — we don’t want to be in encryption to “ensure that terrorists do thinking about the consequences for the
ists and other criminals. In Europe — demanding they hand over informa- a situation where we have to hand it not have a safe space in which to com- security of users or the future of the tech
where the post-Snowden backlash tion, even with a court order. over [to government] just because we municate”. industry. “What are the knock-on
against US tech was the loudest — fears IBM, Cisco and others that sell IT and happen to be processing it.” Many in the cyber security industry, effects of asking for things like back
of teenagers using encrypted messaging communications systems to companies Tech executives hope that drawing a however, claim that an outright ban doors on the competitiveness of the
to communicate with fighters from the and governments were also hit hard by clear line will address other doubts would be like trying to put the encryp- [US] tech industry, for other people
Islamic State of Iraq and the Levant the Snowden leaks. Among other things, about some of their other practices. The tion genie back in the bottle. It would be using our tech, and other countries ask-
(Isis) have led to the threat of new laws they fuelled a nationalistic backlash in Snowden scandal also raised new ques- impossible to guarantee that technolo- ing for back doors themselves?”
to try to stop the tide of encryption. China as government buyers turned to tions about companies such as Google, gies created to give government access
Until recently, encryption was a pro- local tech suppliers, and gave the tech which rely on collecting and analysing to encrypted systems would never fall
hibitively expensive technology to use suppliers good reasons to come up with large amounts of data about their users into the hands of hackers, they argue.
on a large scale. Algorithms scramble stronger guarantees about data security. to sell advertising. “There’s a lot of threats out there,
information into unreadable form, then In response, IBM this year opened its A White House report into Snowden there are risks to people’s safety,” says
unscramble it — using lots of processing mainframe computer technology to shone the spotlight on the “big data” Scott Renfro, from Facebook’s security
power. allow customers to use their own practices of tech companies like Google. team. “But at the same time, there’s no
The relentless fall in the cost of com- Edward encryption algorithms — in effect, In Silicon Valley, it was seen as a blatant way to weaken encryption and make it C Secret battle The US and tech
puting was already starting to change Snowden giving them full control over their attempt by Washington to deflect atten- available only to certain parties.” groups are battling over encryption,
that. But tech companies, eager to set off a information and making it impos- tion from its illicit surveillance by drag- Whit Diffie, a 71-year old security pio- software that uses secret keys to
repair their reputations with customers, rush to sible for IBM, or any outside gov- ging the industry through the mud. neer and co-inventor of the basic protect data
have embraced the technology. Google encrypt ernment, to read it. Offering users deeper encryption is one approach used in most modern encryp-
has led the drive, having been humili- data Big Blue has gone further, way to respond to these disputes. tion systems, says systems work best C All is revealed Before Edward
ated by the revelation that its own gov- licensing its server chip when they are “as simple as possible”. Snowden revealed the NSA’s
ernment — along with that of the UK — technology to Chinese Return of the ‘crypto wars’ This means that it is counter-productive surveillance, few tech services used
had hacked into its internal network manufacturers in a The resulting tide of encryption has to try to build in the kind of special tough “end-to-end” encryption
and tapped a trove of unencrypted data. way that gives them been vehemently criticised by govern- access governments are demanding.
The news highlighted a blind spot in the control over ments and law enforcement agencies “If you compromise the basic tools, C Hard to crack Now, as Google, Yahoo
defences of a company that prided itself encryption, says across the US and western Europe. you are particularly likely to make and others adopt tougher encryption
on leading the industry in security. Martin Schroeter, Mr Comey, the FBI director, has made exploitation by foreign governments policies, government agencies warn
Google quickly extended encryption to IBM’s chief finan- a series of speeches criticising Apple and more feasible,” he says. that security is being compromised
Friday 31 July 2015 ★ FINANCIAL TIMES 7
8 ★ FINANCIAL TIMES Friday 31 July 2015

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Forced to work more hours just to maintain living standards

Sir, There is surely a third explanation unmentioned in Keynes’ famous essay vision”, Tim Harford, July 30). From theory, could understand how the
for the fact that working hours have on the possibilities for our then on he understood that the capitalistic system actually works, they
not diminished as Keynes anticipated. grandchildren. potential gains to society from would behave in a reasonable manner
As Tim Harford suggests (“The On one other factor Mr Harford is technology depended on a monetary and operate the system in such a way
rewards for working hard are too big definitely wrong. He suggests that and fiscal policy regime that permitted as to produce favourable results, to
for Keynes’ vision”, July 30), some Keynes as the guardian angel of adequate and stable aggregate demand. produce a high and stable level of
work because they enjoy what they do, economists could be looking down on For some 25 years after the war a policy employment . . . ” (recorded in
FRIDAY 31 JULY 2015 others because they want more money. him as he writes his column. Keynes regime on these lines prevailed — Richard Kahn’s The Making of The
The third category, though, consists of would never look down on a fellow though one far from his ideal. It was General Theory, Cambridge University
those caught by the changing terms of economist. He would debate fiercely replaced by a regime wholly at odds Press, 1984).
trade in the labour market. In many and then, as the facts have changed with his theoretical and practical We simply do not know how his early
countries real wages have declined in since 1930, he would gracefully and conclusions. predictions would have fared had

Japan is justified in its recent years, especially for those

without scarce skills — a category that
includes not just manual workers but
generously adjust his views.
Nick Butler
Visiting Professor,
His later writings in his capacity as
a Treasury official in the war did
indicate that he still envisaged a time
people “behaved in a reasonable
manner”, but it is hardly of the greatest
importance. The dismissal of Keynes’s

new defence posture also journalists and academics. To

maintain let alone improve living
standards, many people have to work
Kings College London

Sir, Keynes wrote “Economic

when leisure increasingly replaced
work. But he could not foresee policy
into the future. Joan Robinson, his
doctrine may have implications for
society that go far beyond matters
of leisure.
more hours, often in multiple jobs. This Possibilities for Our Grandchildren” Cambridge colleague, later remarked: Geoff Tily
Abe needs to sell security stance better, at home and abroad shift is the product of ever-advancing many years before he had devised his “The great trouble with Keynes was Senior Economist,
technology, globalisation and General Theory (“The rewards for that he was an idealist. He thought that Economics and Social Affairs Dept,
It is nearly 70 years since Japan’s sur- for collective self-defence to his own population growth — factors working hard are too big for Keynes’ when people could understand his TUC
render at the end of the second world public. In Washington, he has played
war. In 1947, under US occupation, it up Japan’s new role to act alongside the
adopted a pacifist constitution, written US, while at home he has tried to Christian approach payments. Such underfunding has In fact, Cameron could
by Americans, in which it renounced present the changes as minimal. taken place each year post the IPO.
the right to wage war. So difficult was it According to opinion polls, a majority to usury forced Jews The upcoming end of federal pension lawfully send troops
made to amend that, unlike in the case of Japanese do not like the new security into moneylending — MAP 21 — relief will only add to the into the Cayman Islands
of Germany, not a single article of the stance, with many fearing Japan burden. In addition, GM’s periodic
constitution has been changed since could get dragged into US military Sir, John Kay is right that the small pension cost, the amount shown on the Sir, According to Jonathan Quarmby
then. adventures. Jewish community in the Middle Ages profit and loss, of just $151m is puny in of law firm Stephenson Harwood,
Now Japan is passing legislation that Even so, the changes are justifiable. was scapegoated for money lending relation to the true liability and yearly the UK prime minister “does not have
will allow it to reinterpret this docu- The rise of a militarily more muscular (“What St Luke would say to benefit obligations, while inflating both the power to force Cayman, Panama
ment, enabling it to engage in what is China alters Japan’s security environ- Schäuble”, July 29). This was ironic on GAAP income and commonly defined and various other jurisdictions to
known as collective self-defence. Some ment. So does the fact that an unstable two counts. First, they were forced into cash flows. publish data on the ultimate beneficial
describe it as the biggest change to North Korea has a nuclear bomb. Japan these occupations by the Christian Finally, GM’s financial subsidiaries owners of companies incorporated
Japan’s defence posture since the war. has not done as good a job at atoning for approach on usury, or the restrictions will require greater amounts of cash if in those jurisdictions” (“Doubts grow
That is an exaggeration. Japan has its wartime aggression as Germany, but on lending money at interest. Second, the company is to grow. During its over property transparency pledge”,
already stretched the meaning of its Japanese troops have not fired a shot at Jewish financiers, like Aaron of latest fiscal year, GM Financial saw its July 29).
constitution to breaking point. Article an enemy in 70 years. If the security Lincoln, actually helped to build accounts receivables grow by almost 14 Really? The Cayman Islands are a
9 stipulates that it must not maintain bills currently trundling through par- Lincoln Cathedral, St Albans Abbey per cent, or $3.9bn. British Overseas Territory. It is
land, sea or air forces. In practice, and liament are passed, Japan’s constitu- and at least nine other monasteries. All in all, given these considerations, parliament that has decided it can be a
initially under US urging, Japan has one tional leeway to engage in military This year, we are marking the 800th GM’s cash flow to enterprise value is secretive tax haven, and parliament
of the best-equipped armed forces in action will still be more restricted than anniversary of the Fourth Lateran closer to 8.4 times, rather than Lex’s 3 that could change its mind about that.
the world. The fact that it is known as almost any other country in the world. Council in 1215, which said that Jews times. I would thus be quite surprised if The UK could lawfully send in the
the Self Defence Forces provides a fig Besides, many Asian countries, includ- living in Christian lands should wear a remembered that the concept of Warren Buffett made a play for the troops, if it came to it. That is not true
leaf. Japanese troops have participated ing India, the Philippines and Vietnam, badge on their clothing. The economic Caliphate is a central Islamic concept, entire enterprise. for Panama.
in UN peacekeeping operations, helped are worried about China’s growing tensions, allied to religious-based anti- and there is nothing wrong with the Kenneth S Hackel Trevor Pateman
fuel US combat-ready ships in the assertiveness and support a more mili- Semitism, had dramatic consequences, concept as long as it is the true peaceful Alpine, NJ, US Brighton, UK
Indian Ocean and even built infrastruc- tarily capable Japan. leading to the expulsion of the Jews in Caliphate. The tens of millions of
ture in Iraq. Still, there are dangers. Japan should 1290 by King Edward I. England had Ahmadiyya Muslims across the globe Japanese communities The Nikkei has no letters
Now, Shinzo Abe, the conservative use its new powers sparingly. It must the shameful record of being the first have already been living under a
prime minister, wants to make it easier not look as though it is ganging up with country to expel its Jews, and was spiritual Caliphate for more than 100 embracing biomass column, so I write to you
for Japan to deploy its military abroad. the US to contain China, a policy that swiftly followed by the likes of France years. And the Caliphate has guided the Sir, Your analysis of the constraints Sir, I am a regular reader of both the
Broadly, collective self defence will could backfire if Beijing concludes its in 1306 and Spain in 1492. Ahmadiyya Muslims to the true Japan faces in increasing the share of Nikkei, Japan’s business daily, and the
allow it to fight alongside its US ally in a legitimate interests are threatened. Mr Zaki Cooper peaceful teachings of Islam of loyalty to renewables in its energy mix (, Financial Times. Last week, the Nikkei
conflict, say a war on the Korean penin- Abe should also work harder at pre- Trustee, Council of Christians and Jews, one’s nation. July 28) made no mention of biomass, devoted a disproportionately sizeable
sula, deemed to pose an immediate senting Japan as a modern, peaceful London W1, UK As a result, Ahmadi Muslims in despite using a chart showing that it is space to its acquisition of the FT.
threat to Japan’s security. It will also be nation. When he gives a speech on the Britain typically raise £400,000 a year predicted by the Japanese government Understandably it is the largest
able to help the US logistically in situa- 70th anniversary of the war next Caliphate of Isis is for British charities such as Marshal to account for as much 4.6 per cent of transaction the Nikkei has undertaken
tions that have a significant influence month he should repeat previous apol- Leukaemia and Lymphoma Research Japan’s electricity mix by 2030, more domestically and internationally, but
on Japan. Such changes, actively sup- ogies, and even expand on them in the un-Islamic and brutal and Macmillan Cancer Support, and set than wind and geothermal. I was somewhat perplexed to find that
ported by Washington, are opposed by interests of trying to bury history once Sir, As a proud Brit and just one of the a prime example of British Muslims More than 4GW of capacity is the articles were not written with its
China and South Korea, which see and for all. 7,000-plus British youth members of who actively contribute to the fabric of planned by 2030, supported by the customary uncompromising
them as evidence of a new Japanese If he does all that, China should the peaceful Ahmadiyya Muslim British society. Japanese government through a 20- inquisitiveness.
militarism. reciprocate. It is time for Asia to put the Community, I find there to be no Farhad Ahmad year feed-in tariff. Currently Japan I wanted to write to the Nikkei, but
It is true that Mr Abe is a nationalist. events of 70 years ago behind it. A conflict in being British and my Surbiton, Surrey, UK imports much of its feed stock in as the Nikkei does not carry a readers’
It is also true that he has some dis- more “normal” Japan — if one still con- Islamic faith. However, I do find there various forms including Indonesian page, I decided to send a letter to the
tinctly revisionist views. Nor has he stitutionally restrained — is part of that to be an issue with David Cameron’s Pension plan makes palm kernel shells and energy chips FT instead.
done a good job at explaining the need process. presumption that we cannot deny “a from eastern Russia, but there is huge Kazuo Mike Fujisawa
connection between the religion of GM look less enticing potential for sustainable sourcing from Tokyo, Japan
Islam and the extremists”. Sir, The implied valuation of GM local forests, and predominantly using
Islam’s foundation is the Koran (“General Motors: on the Buffett table”, timber from forest thinning. Some 67 An EU directive and
which clearly rejects extremism and Lex, July 29) would certainly be per cent of Japan’s land area is made up
terrorism of any kind. I would not enticing if true. Not taken account of in of forest, dwarfing Germany (32 per the price(s) of the FT
Renzi needs to sharpen disagree if Mr Cameron were to say
there is a link between terrorism and
certain Muslims. This I believe is a very
the analysis are several factors,
including the company’s vast pension
underfunding, which, while listed at
cent), France (29 per cent) and the UK
(12 per cent). Moreover, biomass-
generating capacity is not limited as
Sir, Your front page report “Disneyland
Paris faces probe on prices paid by
foreigners” (July 29) contends that the

his rapier of reform simple but significant distinction and

the UK government should
acknowledge this. When Islam is said
$24.1bn at fiscal year-end, is actually
closer to $29.4bn when more realistic
actuarial assumptions are utilised.
solar is by the number of abandoned
golf courses, nor is it widely opposed
like geothermal; rather, it is embraced
EU services directive bans forcing
consumers to pay more because of
their country of residence.
to have a link with extremists, every Additionally, the failure of GM to fund by local rural communities finally This contrasts nicely with the
The Italian PM cannot allow the pace of modernisation to abate peaceful Muslim is understandably the plan properly leads investors into achieving security of supply on Japan’s prices of your newspaper in different
hurt to see his/her faith’s peaceful believing their cash flows and GAAP small islands. EU locations, ranging from €3.50
A year ago, Italy’s prime minister Mat- weak signs of growth. The Bank of Italy teachings linked to barbaric acts that results are higher than economic Ingo de Buhr to €6.99, which are listed on the
teo Renzi gave an interview to the in July raised its GDP forecast to just 0.7 find no basis in the Koran. reality would dictate. For instance, for Chief Executive, same page.
Financial Times — his first with a for- per cent in 2015 from its previous 0.5 The Caliphate of Isis is completely its last fiscal year, GM contributed just PN Power Plants, Lucas Bouwhuis
eign newspaper — promising to change per cent, and expects 1.5 per cent in un-Islamic and brutal. But it must be $913m versus almost $7.5bn in benefit Düsseldorf, Germany Utrecht, The Netherlands
his country. At one point brandishing a 2016. A monthly bonus of about €80
rapier for dramatic effect, the then 39- for middle-income Italians is having
year-old former mayor of Florence said little effect.
he would enact tough reforms. Not only
would these return Italy to growth,
In spite of a much trumpeted reform
of the labour market, unemployment Walter the So Walter the dentist now has at least
a sense of what it must have been like
more beneficial impact than might
immediately be imagined. The idea of
many like you these days.
OK, next: Are you or have you ever
ending a three-year-old recession, but
he would revive a “sleeping beauty”
remains stubbornly high at 12.4 per
cent. Youth unemployment is 41.5 per dentist: the new to be Cecil the lion even if he will
make for a less impressive wall-
the great white hunter conjures up
images of Clark Gable in Mogambo or
been a communist? That’s just a little
joke to break the ice . . . you aren’t
that after more than a decade of stagna-
tion is carrying a debt burden of 130
per cent to gross domestic product.
cent. The IMF this week said that with-
out a significant acceleration in growth
it would take Italy 20 years to return
face of the great mounting.
The Minneapolis dentist who killed
the apparently beloved lion after it
Allan Quartermain from King
Solomon’s Mines, men of courage who
pitted themselves against beast and
though are you? Oh good, we used to
have quite a few of them and they
were a terrible nuisance. Kept banging
Fortune favoured his chutzpah. A
weakening euro, lower oil prices and
unemployment to pre-crisis levels. Its
public debt remains as high as before.
white hunter was tricked out of its protected park
in Zimbabwe is now facing the full
put themselves in harm’s way. It is this
notion of masculinity that attracts
on about the workers and absolutely
no sense of humour.
quantitative easing by the European Now the wind at Mr Renzi’s back is fury of a public backlash for his other — how can we put it — less Right. Are you or have you ever
Central Bank gave him wind at his back abating. Eurosceptic, anti-immigration callous action, which has not only obviously virile figures to the pursuit. been a Conservative? That’s not quite
for the first part of this year. More parties are gaining traction amid per- upset most right-thinking people but Today’s great white hunters are as serious but it is frowned upon.
recently, comparison with another vasive public gloom about the econ- also disappointed Ricky Gervais. more like the dregs of the old colonial You’ve never tried to open a free
young politician from southern Europe omy, corruption and a migration crisis. Many will take pleasure in the order, pampered tourists pouring school have you? That’s a real no-no
— Alexis Tsipras — has made Mr Renzi
appear an exemplar of Generation X
His centre-left party’s polling is down
from mid-2014 highs of 45 per cent to Notebook thought of the hunter being hunted.
We can imagine the reports. “Walter
dollars into distressed or enfeebled
African economies and pilfering their
for us. And you weren’t ever at college
with David Cameron. We have to ask.
statesmanship. below 35 per cent. The timetable for was lured out of his protected practice natural resources just as surely as if Next: Do you have any posters of
Nor has Mr Renzi idled. Unleashing a reforms is continuing to slip. Pledged
by Robert Shrimsley by small game hunters who tempted they were extracting minerals. Che Guevara in your room? Oh well, at
blizzard of activity from his office in overhauls of the Senate, public admin- him with reports of an inflamed Now, however, we have a new face least it’s not Russell Brand. But if you
Rome he has declared “done” reforms istration and tax reform, the real game bicuspid. News of his disappearance of the white hunter. He is no longer are with us for the long haul, we
of the electoral and judicial system, changers for Italy, are now far more has shocked locals. Walter was much Clark, the matinee idol; he is Walter suggest Obama “Hope” posters — or
labour market, education and banks. vulnerable to political compromise. respected in Minneapolis and was the dentist from Minneapolis. maybe something with Miles Davis.
Investors have noticed. Foreign Amid this darkening picture Mr described by colleagues as a very Do you hate the rich? Ah no sorry,
investment into Italy has surged four Renzi this month has pledged to slash loving dentist. We do not know what Checking up on Corbynism the line is that you don’t believe in the
fold, to a total value of $19.3bn in the 12 taxes on first homes next year, corpo- happened — he was not wearing a Britain’s opposition Labour party has politics of envy, you just want a fairer
months to June. Foreign buyers cite rate taxes in 2017 and income taxes in tracking collar and had left his Fitbit promised careful checks to stop entryists distribution of wealth. Mention
political stability and the speeding up 2018, on top of €18bn of tax cuts at home, but investigators are trying joining the party to vote for the hard left Piketty if you like.
of company litigation and bankruptcy pushed through since last year. to pin down his last movements using candidate for leader, Jeremy Corbyn. OK next question: Do you consider
proceedings as significant, along with But while a reduction in the 30 per his find my iPhone service. The worry America to be the greatest threat to
attractively low asset prices. This week cent corporate taxation is badly is that even now he is adorning the Hello, I’m calling on behalf of the world peace? Oh dear, I’m afraid that’s
Germany’s HeidelbergCement bought needed, the first homes giveaway looks wall of some big cat’s den, next to a Labour party about your application a third rail question. The correct
family-owned Italcementi for €1.7bn. like a populist sop. Mr Renzi also can- cosmetic surgeon and two podiatrists.” to join and to welcome you to the answer is we believe in a candid
Meanwhile, capital from the west not in seriousness go to Brussels argu- One does not have to succumb to fastest growing political movement friendship. What’s that? You’ll know
and east is flowing into Italy’s stock ing for leniency on a budget deficit of the almost Princess Diana-like outside Scotland. better when you try again.
market. BlackRock has taken stakes in 2.6 per cent without making extensive hysteria about a “loving” lion to be Now, as we are in the middle of a Last question: Do you actually want
Snam, UniCredit, Luxottica, Prysmian, — and unpopular — spending cuts to appalled by the cruelty and cowardice leadership contest, we are just doing a Labour to win the next election or are
Atlantia, Intesa, Telecom Italia, Eni, Italy’s costly public administration. of a man who already has a conviction few checks on new members before you happy in opposition? That’s fine.
Enel and Generali. People’s Bank of Mr Renzi, like Silvio Berlusconi, likes for killing a black bear. we issue them with a ballot paper. Take as long as you like. Looks like
China is today a significant investor in to present himself as Italy’s saviour. His However, one wonders whether the First question: Did you actually vote we’re going to be here a while.
many of the same. progress is better than that of his dis- notion of Walter as the new poster boy Labour at the last election. You did?
But despite these votes of confi- credited predecessor. He needs to for the white hunter might have a Really? That’s fantastic, we don’t find
dence, Italy’s economy is showing only sharpen his rapier to show he means it.
Friday 31 July 2015 ★ FINANCIAL TIMES 9


The land of free markets, tied down by red tape To prevent

Brexit, Cameron
specialist arenas such as nursing. But, in
recent years they have proliferated so
neurs need, on average, to navigate six
different legal and regulatory hurdles to
much easier to start a company in Texas
than, say, California. Moreover, red tape
cally expire after a given period unless
specifically renewed.
must stand up
dramatically that a quarter of all Ameri-
can workers must secure one from indi-
vidual states. Sometimes this is justi-
start a company. In New Zealand and
Canada, which top the league, there
is just one procedure. The complexity
is only one factor that determines
start-up activity; what also matters is
whether there is access to capital and
This concept flies in the face of cur-
rent practice, which tends to leave rules
on the books unless they are deliber-
to the eurozone
fied: airline pilots need licences. But faced by Americans means that it a culture of respect for entrepreneurs. ately repealed. And sunset comes with
often, as in the three years of training takes them on average about six days Nevertheless the data represent pol- drawbacks: renegotiating regulations
needed to become a security guard in to create a start-up; in many other icy challenge — doubly so since data can introduce business uncertainty and

very nation needs a unifying Michigan or the thousands of hours countries the process is much faster from the Kauffman also show that the endless lobbying fights.
idea. Americans love to see required for hairdressers in Utah, the and cheaper. rate of new business creation today is But some policymakers are talking
themselves as champions of rationale is less clear. “well below historical trends”, even seriously about the idea. Indeed one Charles
free markets and entrepre- The process of securing these licences though it rose this year (after several congressman, Chris Collins, introduced Grant
neurial zeal — and have long
been more welcoming to entrepreneurs
is often so costly and cumbersome that
one recent study estimated costs for
Some of America’s abundant years of decline).
The White House has attempted to
a bill this week calling for a seven-year
sunset approach. The concept needs to
paperwork is justified: pilots

than has most of the western world. consumers at $200bn a year. More respond to the problem: this week Presi- be discussed, if nothing else because it an Britain, a country that
But the 2008 financial crisis tarnished importantly, licences deter many need licences. But often the dent Barack Obama urged states to might start a proper conversation about plans to keep its own cur-
America’s self-image (with, for exam- would-be workers — and entrepreneurs. reduce the number of occupational which start-up rules — and occupational rency, feel comfortable in an
ple, the eyesore of state support for A separate World Bank report is even rationale is less clear licences. Last month, he launched a licences — are worth keeping and which EU that is increasingly
mortgages). The entrepreneurial halo is more sobering. Last year it ranked “Start Up In a Day” initiative to slash the are not, and how to stop the sprawl of focused on the euro and its
starting to slip, too, since increasing countries according to their levels of Of course, this World Bank league length of time it takes to create a busi- red tape. troubles? As David Cameron’s govern-
quantities of red tape are making life support for the corporate world. This does not tell the whole tale. The Ameri- ness; it is offering a $1.5m prize to any- Who knows? In a country that wor- ment starts negotiations with its part-
harder for start-ups, relative both to the placed America in seventh place in can national average conceals signifi- one who uses technology to streamline ships the ideal of the plucky start-up, a ners on the terms of Britain’s member-
past and to the rest of the world. terms of overall ease of doing business. cant geographical variations because it the process. campaign to slash red tape could be one ship before an in-or-out referendum,
Take a look at a striking report issued But the US was ranked 46th — yes, 46th is municipalities that set many of the It is clear that far more needs to be of the few things that all the presidential this question is becoming a priority for
by the White House this week on occu- — in terms of how easy it is to start a business rules. Thus research by done, however. One idea that policy- candidates actually agree on. Even (or the UK. Arguments over EU migrants’
pational licensing, the rules that force company. This is worse than Estonia, Thumbtack, a West Coast website that makers ought to discuss is whether it is especially) that arch entrepreneur him- access to benefits will generate more
workers to obtain qualifications to do Malaysia, Georgia and even France. connects consumers with local busi- time to introduce a “sunset” principal self, Donald Trump. political heat, but the relationship
certain jobs. Five decades ago, occupa- One important reason for this dismal nesses, and the pro-entrepreneurship for business regulations — an assump- between the eurozone and the wider EU
tional licences were required only in position is that in America entrepre- Kauffman Foundation shows that it is tion that regulations should automati- is a vital point for senior figures in the
government, including George Osborne,
chancellor of the exchequer. It is also a
big concern for British business leaders.
Their worry is that the 19 euro coun-

The Calais
tries could create a caucus and impose
their wishes on the 28-country single
market. Euro members can do so since
voting rules introduced last year gave
them a “qualified majority” in the Coun-
cil of Ministers, the EU’s most important

migrants are
decision-making body. The City of Lon-
don is of particular British concern:
countries that know little about banking
— or which seek to favour their own
financial centres — could vote for rules

Europe’s shame
that harm its competitiveness.
So the UK wants “safeguards” for the
single market. Its problem is that not
many EU governments are sympa-
thetic. In Berlin, the capital that matters
most, few figures other than Wolfgang
Schäuble, finance minister, appreciate
British concerns. Germans officials
GLOBAL POLITICS as if it is somehow reprehensible to seek argue that eurozone countries do not
an escape route from poverty and worse operate as a caucus — because they sel-
Philip — but the largest portion are the victims
of war. Syrians head the list, followed by
dom agree on economic policy. The UK

Stephens Eritreans, Somalis, Iraqis and Afghans.

What unites them is a belief that any
risk — trekking thousands of miles
The City is of particular
across Turkey and the Balkans, drown- concern — other countries
ing in the Mediterranean, falling under a could vote for rules that

he migrant crisis at Calais is truck or a train at Calais — is small meas-
a story of human misery, ured against the dangers at home. harm its competitiveness
war-torn and broken states There is nothing new about large
and European denial. It movements of displaced people. In Syria, the chosen posture is quiescence. population of Lebanon now comprises that governments have lost control. One responds that, as the eurozone inte-
speaks to a world in which recent memory, Europe has managed Ten years ago the UNHCR helped a mil- Syrian or Palestinian refugees. answer is to replace the Calais jungle grates, the risk is growing ever greater.
advanced nations have lost the will, and the influx of refugees from the former lion people a year return to former con- European governments argue about with Europe-wide centres to document When the EU drew up rules on bank-
some of the capacity, to prevent and Yugoslavia as well as those from seem- flict zones restored to stability. By 2014 how to share out the “burden” of 40,000 the refugees and, if necessary, return ing supervision in 2012, it established
resolve conflicts. Their politicians will ingly never-ending conflicts in Somalia the number had fallen to 126,000. asylum seekers — most of them young illegal migrants to their home nations. “double majority voting”: decisions
not find an answer by drafting in more and Afghanistan. What has changed — For all the panic generated by the men, many highly skilled and all eager If genuine asylum seekers are to be require a majority of both euro and non-
police or building higher fences. and this was a point eloquently made by 5,000 camped in the so-called “jungle” for work as well as sanctuary. Germany persuaded not to risk life and limb euro countries. But the Germans insist
An estimated 5,000 people are António Guterres, the UN High Com- at Calais, Europe has been only slightly and Sweden, two nations more open crossing the Mediterranean or the this should not apply in other areas,
camped, in dreadful conditions, around missioner for Refugees, when he gave touched. Running scared of the populist than most to the migrants, will profit Channel, EU governments must also since the system would — as more EU
the French ferry port and its entrance to the Ditchley Foundation annual lecture right, politicians have lost a sense of pro- from their generosity. offer legitimate routes to settlement. As countries joined the euro — evolve into a
the cross-Channel tunnel. The numbers this month — is the spread and persist- portion. An estimated 150,000 people It should be obvious that individual for domestic public opinion, the politi- British veto. Many Germans suspect the
have been rising through the year. So ence of conflicts in failed and failing have crossed the Mediterranean and states cannot go it alone. Barriers are cians should have learnt by now that safeguard Mr Cameron really wants is a
has the desperation of the migrants to states. The pendulum in advanced Aegean in the first half of this year. That being thrown up by nations across the chaos fuels fear; fair, effective manage- veto for the City on financial rules. In
make it across the 21-mile sliver of sea nations has swung from liberal inter- is much more than in 2014, but it is to be continent. At very best they simply ment provides reassurance. fact, he will not ask for that. But German
that separates France from Britain. ventionism to furtive inaction. measured against a population for the divert the problem. There are some in The world has changed. The relative fears are fuelled by memories of the
The governments of the two counties Mr Guterres observed that five years 28-nation EU of about 500m; and it Britain who blame Europe for the crisis. power of Europe has slipped still faster debacle of December 2011: Mr Cameron
have spent tens of millions of euros ago an estimated 11,000 people were remains a small fraction of the 4m who These eurosceptics claim that by leaving than that of the US, and with it the said he would not sign the “fiscal com-
on security measures to prevent the fleeing war every day. By last year the have fled the civil war in Syria. Up to 2m the EU, Britain could reclaim control of capacity to fix problems in its neigh- pact” that Germany wanted without an
migrants from clambering on to trucks figure had quadrupled to more than Syrians have fled to Turkey and, as Mr its borders. The Calais crisis points pre- bourhood. That is not to say it can abdi- agreement to change some voting rules
and trains. The effort, predictably, has 42,000. Of these roughly two-thirds Guterres noted, fully one-third of the cisely in the opposite direction. Without cate responsibility. The EU still has the affecting the City; the Germans blocked
been futile. This is what happens when were internally displaced, but the French co-operation David Cameron’s tools — economic, political and military the changes so he did not sign.
policymakers opt to treat symptoms remainder were forced to seek refuge government would be powerless. — to promote order beyond its borders, The recent furore over the European
rather than causes.
Calais is the end of a funnel that has
abroad. The contrast he drew was with
the 1990s. Then, albeit sometimes after
The pretence that Europe’s problem is Britain’s problem,
and vice versa.
sometimes on its own, more often as a
convening power. The Calais crisis is just
Financial Stability Mechanism has rein-
forced British worries. The eurozone
seen tens of thousands of migrants flee- much hesitation, rich nations acted — in fences are an answer pours The pretence that fences are an one more a lesson in the costs of hiding wanted this fund, to which Britain has
ing war and destitution in the Maghreb
and beyond. Some are what politicians
Bosnia and Kosovo, Sierra Leone and
East Timor. Now, whether it is South
fuel on to the fires of answer pours fuel on to the fires of anti-
immigrant populism. Voters are less
under the bedcovers. contributed, to make an urgent bridging
loan to Greece — despite an earlier Euro-
disdainfully call “economic migrants” — Sudan, the Central African Republic or anti-immigrant populism worried by numbers than by the sense pean Council decision that it should not
be used for eurozone bailouts. The EU
can decide to use the fund by qualified
majority vote. Knowing that it could not
veto the loan, the UK voted in favour, in

Beware of a Titanic response to Dodd-Frank return for guarantees against potential

losses. To British officials, this is a clear
example of a eurozone caucus: in a cri-
sis, its members will put the currency’s
needs ahead of legal niceties or the
International Conference on Safety of general manager of the Detroit & Cleve- land added more life boats and rafts to est global banks relative to smaller interests of those that do not belong to
OPINION Life at Sea was convened to develop a land Navigation Company, questioned boost its licensed capacity to accommo- banks may be appropriate, just as “life- the euro.
global response. Sensible reforms whether such a requirement should be date 2,500 passengers for the ill-fated boats for all” may be more appropriate Mr Osborne will press hard for safe-
Randall included taking more southerly transat- applied to ships plying the Great Lakes. picnic cruise. The ship was designed in for transoceanic ships but not for steam- guards. What could he ask for that
Kroszner lantic routes to reduce the likelihood of “The extra weight of the lifeboats 1903 with six lifeboats. When the catas- ships on the Great Lakes. might be acceptable to other govern-
encountering icebergs and creating an and rafts would make [ships on the trophe occurred, it had 11 lifeboats and Third, costs and benefits need to be ments and EU institutions? Perhaps the
iceberg patrol, still operating today, to Great Lakes] top-heavy and unseawor- 37 life rafts. (Each raft weighed some taken seriously. The anniversary of the promise of a treaty article stating noth-

ne hundred years ago this monitor and warn of the risks. thy, and . . . some of them would 1,100 pounds.) Dodd-Frank act is an excellent moment ing done by the eurozone may damage
month, 2,500 passengers Similarly, after the 2008-2009 finan- turn turtle [capsize] if you attempted to The additional weight of the lifeboats to gather data to assess the benefits and the single market. The non-euro nations
in a festive mood boarded cial crisis, the Group of 20 leading navigate them with this additional and rafts may have been only one factor costs, their interactions and potential could gain the right to observe meetings
the SS Eastland for a picnic nations, Financial Stability Board, the contributing to this calamity, but it unintended consequences. Have activi- of eurozone ministers. They could also
cruise on Lake Michigan. Basel Committee and other interna- illustrates how powerful unintended ties moved into the shadows and how be allowed to press an “emergency
Just as the ship was to leave its mooring
in the Chicago river, the Eastland sud-
tional regulatory bodies convened to
provide a co-ordinated global response,
New regulations can consequences can be of even the most
sensible-seeming regulatory reforms.
has this affected the robustness of the
system? What has been the impact on
brake”: if one of them thought a euro-
zone decision would damage the mar-
denly capsized and 841 passengers lost promoting rules to reduce banks’ risk undermine their own goals; So what is to be learnt from the Eastland liquidity of markets? As with icebergs, it ket, the decision would be postponed
their lives — more than in the Titanic
exposure and to increase macropruden-
tial monitoring.
‘lifeboats for all’ can bring disaster?
First, even if a rule solves some prob-
is not what you can see but what you
cannot that is often most dangerous.
for, say, a year, while the European
Council of leaders reviewed it.
The fate of the Eastland is one of But an important response to the a false sense of comfort lems, it does not necessarily solve them The key lesson from the Eastland The UK government has not yet con-
America’s great unremembered trage- Titanic was “lifeboats for all”. If only the all. In some cases, new regulations can tragedy is certainly not that regulation vinced many of its partners that its con-
dies, yet it carries important lessons for Titanic had had enough lifeboats for all weight on the upper decks,” he said. undermine their own goals, creating is inevitably counterproductive but that cerns about the relationship between
policymakers today, specifically about its passengers and crew, perhaps no one While Congress did not mandate “life- new sources of instability. New rules can we always need to consider unintended the euro and the single market are justi-
how a regulatory response to one disas- would have perished. What could be boats for all” for ships on the Great interact with other weaknesses in the consequences and cost-benefit trade- fied. It will need to do a better job if it
ter can unleash unintended conse- more sensible and obvious? Lakes, the 1915 La Follette Seaman’s Act system. “Lifeboats for all” can bring a offs, even for extremely well-motivated wants to win credible safeguards. Other-
quences that could contribute to The measure was adopted in the 1914 significantly increased the require- false sense of comfort, and inspectors rules, to protect us from turbulence in wise British voters may conclude the EU
another. The fifth anniversary this International Convention relating to ments. The Eastland had already and supervisors may not look as care- financial markets — and on the seas. is not driven by the interests of all its
month of the Dodd-Frank Act reform- Safety of Life at Sea. It was immediately increased its number of rafts in 1914, as fully for other vulnerabilities. members, but by those of the eurozone.
ing financial regulation seems like a par- clear to some, however, that this policy federal inspectors tightened the rules. Second, one-size-fits-all regulation The writer is a professor of economics at the
ticularly good time to consider this. might have unwanted ramifications. In Just three weeks before the tragedy, may not be appropriate. Higher capital University of Chicago and former governor The writer is director of the Centre for
After the Titanic’s sinking in 1912, an testimony to Congress, A A Schantz, the and after the passage of the act, the East- and liquidity requirements for the larg- of the US Federal Reserve European Reform
10 ★ FINANCIAL TIMES Friday 31 July 2015


Personal technology

Windows 10
Microsoft goes back to basics
with its new operating system

It feels a little disconcerting I tested — a laptop with a

when your laptop wants to touchscreen — the product
get personal and tries to felt thoroughly coherent.
anticipate your needs. The focal point of the new
Vaguely presumptuous Windows is the start menu
even, in the manner of a — what you see when you
slightly overattentive click the Windows icon at
neighbour who stops just the bottom left of the
short of intrusiveness. screen. Microsoft makes
much more use of this real
There was the moment with estate, letting users expand
the new Windows 10 it with Windows 8-style tiles
operating system, for and turning it into a shop
instance, when I hit the window for the app store.
wrong key and a box You’ll find yourself starting
popped up with an ethereal, most tasks here rather than
rotating blue disk and the on the desktop, which

Fighting talk on winning new viewers

words: “Need anything, becomes dead space.
Richard? Tell me to go A search box activates
ahead and do something.” Cortana, the “virtual
Then there are the assistant” represented by
prompts to download apps the spinning blue disc. Or
from a new Windows app you can click on a
store, and the smartphone- microphone icon and speak
archived footage, and sells the rights. It can’t you charge $1?” asks George. Why Like father, like foot when I ask if it was right that he like notifications that pop in your instructions: in my
WORKING LIVES promotes and manages a stable of more charge anything at all, I ask? George son: George, 28, fixed his first fight for his second cousin. from the right side of the tests the voice recognition
than 40 boxers, overseen by Mr War- nods, adding: “Why can’t you charge followed Frank’s “Didn’t fix it,” says Mr Warren, screen. Twice the machine was surprisingly good.
Emma ren’s Queensberry Promotions, provid- nothing and do advertising?” lead into the appalled. I explain I meant organising dug up details of an old Cortana feeds you news and
Jacobs ing material to screen in programmes.
George is admiring but not deferen-
This is fighting talk. In the last finan-
cial year, BoxNation, which has 120,000
business, and
below, the boxer
rather than rigging. “We’re a little bit
sensitive to that one,” he laughs. It leads
Microsoft email account it
was eager for me to update.
other information and tries
to learn what you’re
tial. There is no one, he says, that can regular subscribers, made a loss, despite Emmanuel on to my next question: is boxing a interested in — and she is
guide a boxer’s career better than his revenues of £15.6m. This, they say, was ‘Manny’ murky business? “It’s much cleaner Engagingly attentive always ready with a
dad. “The fundamental core of our busi- primarily due to investing in technol- Pacquiao than Fifa.” Most things are, I offer. But if Windows 10 risks suggestion of what to ask.
ness has always got to be about the box- ogy. It is also the reason that they Charlie Bibby
His reply is that boxing is cleaner than being creepy, even vaguely It’s tempting to think of
Fans’ habits are changing, ers . . . Our customers want to see box- decided not to press ahead with a float, sports including football, cricket, sinister, the feeling passes. Clippy, the annoying paper
says boxing promoter ers win world titles.”
The father and son team insist this
explored in 2013. Gareth Jones, the dep-
uty chairman, speaking by telephone,
horseracing, athletics and cycling. He
clarifies: “Everything’s so open to the
This is a piece of software
that wants to have a deeper
clip helper that used to
appear in Office. But besides
Frank Warren, and year’s Mayweather-Pacquiao fight says: “It was too early.” Expansion, they media, if there’s anything murky or relationship with you than a better design and more
he wants matches to proved the global audience for boxing,
despite the fact that many fans were let
say, is in the emerging markets, particu-
larly eastern Europe and Asia, both for
crooked in boxing, certainly in this
country, it would be grabbed.”
the PC you’re used to. After
living with it for several
engaging “personality”,
Cortana is far more versatile.
reach a wider audience down by the fight itself. “It was always talent and audiences. When he decided to make a go of box- days, the attentiveness Among other things, you
about two stars,” says Mr Warren. Mr Warren never wanted his children ing, he became determined to give it becomes engaging. can issue voice instructions

oxing is “an anxious busi- Fans view content in different ways to follow him into boxing. (His son, everything he had. “Sometimes I just It is also a return to basics.
ness” so there is “no use get- today, they say, for example, on mobile Francis, also works for the business.) put the blinkers on.” This has some- With Windows 10, Microsoft
ting anxious about it”. This is phones rather than televisions. “Things “No, absolutely not, not my area, not times been to the detriment of his per- has stepped back from its A new browser
the verdict of Frank Warren, have changed so much,” says Mr War- into boxing, I really didn’t . . . I wanted sonal life. “It’s not a nine-to-five job.” touchscreen-centric
the boxing promoter and ren. “Netflix has crashed down the my kids to do something else but they’re The most dramatic personal event predecessor, dubbed 8 (it has the clean
manager who has looked after most of doors of how people consume and watch boxing nuts.” was when Mr Warren was shot at close seems 9 fell through the
the big names in British boxing: movies; iTunes completely blasted the A great deal of Mr Warren’s decision- range by a masked gunman in 1989. cracks). The result is a PC design and
“Prince” Naseem Hamed, Nigel Benn music business apart but got to a bigger making, he says, is based on “gut feel- Terry Marsh, one of his former boxers, operating system that is
and Ricky Hatton. “You can build a audience. That’s where we need to get ing”. So too with discovering boxing tal- was prosecuted but later acquitted. The designed to be, first and speed to
fighter who becomes a real star and one to.” They are looking at all kinds of dis- ent. “I feel that person’s got something overriding feeling was anger. “It didn’t foremost, fast, elegant and
punch can change that.” tribution, and are interested in Spotify’s about them . . . You’ve got to look at wreck my confidence. I was angry, very. efficient. A rapid boot time match others
If Mr Warren, immaculately dressed music streaming model, although they what they’re not good at and what needs I was angry that I got shot.” and a new browser that has
in a blue suit, seems zen about such vol- decline to spell out how this might work. to be done, getting the right team It hit his business. A deal to raise the clean design and speed to Cortana to give you
atility, the 63-year-old has been through BoxNation lost a bidding war for around them . . . making the right move funds for the London Arena in Dock- to match browsers from reminders. She can also
worse: surviving a shooting as well as the rights to screen the Mayweather- at the right time.” lands — in which he held a 70 per cent Google and Apple are perform voice searches
huge business setbacks. Interviewer- Pacquiao fight in the UK, that they The son of a bookmaker and house- stake — fell apart. Banks, he says, did among the features that using Microsoft’s Bing and
turned-friend Lynn Barber has written hoped would boost subscriptions. The wife, Mr Warren left his grammar not want to do business with a man who improve the experience. start an email in Microsoft’s
of him: “I can’t think of anyone who has winner, Sky Sports charged up to £24.95 school, in Islington, north London, at had been shot. The east London venue Three years ago, email service.
had such high highs and low lows, to view the fight. the age of 15. “I did very well at later went into administration. It took a Microsoft’s first attempt at
including disasters that would have “Who’s to say that you need to charge school . . . then I went off in long time to recover financially, he says. marrying touchscreen Broadening the appeal
sunk anyone with less determination.” £10 or £15 or £20 [to view a fight]. Why a different direc- Mr Warren has a reputation for issu- tablets with the PC led This is all fine but it does
Today, we are sitting on the veranda of tion . . . I lost inter- ing writs against journalists. Why does Apple’s chief executive Tim raise one important
the Goring hotel in the high-end neigh-
bourhood of Belgravia, central London, ‘Who’s to say that est.” One of his first
jobs was at a solici-
he do that?
“When I was a kid I would never be
Cook to observe that, just
because you could combine
question: what if you don’t
want to live in Microsoft’s
with his 28-year-old son, George (the
fourth of his six children). The pair are you need to charge tor. “I worked there
for about a month.
frightened of anybody, I would never let
anybody bully me and if they did I
a fridge and a toaster in one
appliance, it didn’t mean you
universe? Windows 10 can
feel like a conduit for the
outlining their plans for BoxNation, the
boxing television channel, launched in £10 [to view a fight]. It absolutely did my
head in . . . I just felt like I was
would react to it.” So too with news-
papers. “If I do something wrong I’m
should. Windows 8 was a
step too far for PC users,
company’s services, which
include its integration with
2011, which is available on TV in UK
and globally online and through mobile Why can’t you enclosed.” After a stint at Smithfields
meat market he worked for himself.
accountable for it.” who found its unfamiliar grid
of coloured tiles off-putting.
Xbox Live and the OneDrive
cloud storage service. You
phone apps. It creates and broadcasts
boxing content, including live and charge nothing?’ My questions about his move into a
boxing career start off on the wrong
Twitter: @emmavj
It would be interesting to
hear what he has to say now.
don’t need to be all-in on
Microsoft services to get a
lot out of Windows 10, but it
Useful features enhances the experience.
Windows keeps elements In theory, others could
from the smartphone and produce apps with the

A yacht rental start-up ventures beyond Greek headwinds tablet world — the app
store, notifications and large
coloured tiles that act as
ability to integrate with
Cortana. But will they, and
will many app makers even
icons — but integrates them put their software in the new
much more smoothly into Windows app store?
Incrediblue views vessels derful toys but very time-consuming founders, Mr Fiorakis among them, conditions where businesses are able to the familiar PC experience. If they turn a cold
and expensive to run and maintain.” ventured that a crisis of such magnitude quickly adapt their models. “The shock
as underused assets, The portal allows users to choose a could in fact create opportunities for and depth of the crisis has led to the
There are discordant
notes, certainly: switch
shoulder, as they did with
the Windows phone store
writes Snezana Curcic holiday or charter a boat based on ideas to develop. total collapse of the internal market in between a PC screen with before, Windows 10 will miss
price, location, availability and user Like-minded Greek venture capital Greece — meaning the only viable multiple windows open, and much of its potential
reviews. A skipper is always included. firms have offered help. One is the pri- option is to go international, especially “tablet mode” with its more consumer appeal.
A disastrous sailing holiday around the Fees range from €50 to €1,000 per vate Athens-based Jeremie Openfund with digital goods and services,” he says. basic single view of an app,
Aegean Islands three years ago was a person per day depending on the craft. II, which has invested in Incrediblue, Incrediblue is now a UK-registered and it takes a moment to Verdict
turning point for Greek entrepreneur Mr Fiorakis says the company under- and other companies focusing on soft- enterprise, with 17 mostly Greek work out what happened to These things are outside
Antonios Fiorakis. He and his friends cuts established players on commis- ware and the web. employees in total. It runs its business, all the other things you were Microsoft’s control. But at
ended up on a smaller catamaran than sion, charging 15 per cent rather than Aristos Doxiadis, a partner in the customer service and development working on. Stretching a least, in Windows 10, it has
they had agreed to hire and were left up to 40 per cent. Boat owners can list fund, explains that many Greeks have divisions from Greece, while marketing single operating system to come up with an appropriate
buffeted by challenging summer winds, their vessels after emailing their owner- been forced to move away from the and sales are driven from London. cover all devices is bound to synthesis of the old, in the
with inadequate guidance. ship documentation. They have a traditional way of looking for safe According to market researcher throw up moments like this. form of the PC, and the new,
Mr Fiorakis reasoned that he could chance to do business directly with a Taking the jobs in the public sector or family busi- Future Market Insights, last year the But at least on the device in the form of tablets and
do a better job as a middleman and this broad range of customers as opposed to plunge in spite ness. Opportunities instead exist in global yacht charter market was valued smartphones.
impulse eventually led to the creation only experienced sailors. of the crisis fast-moving and changeable economic at $35bn and is expected to grow to Windows 7 and 8
of Incrediblue, an online marketplace So far, the portal has more than 2,000 $51bn by 2020. customers can upgrade free
connecting yacht owners with those yachts, catamarans and motor boats Mr Fiorakis says the market is clut- of charge starting this week.
looking to charter a vessel. listed and moored across the Mediter- tered and competition is fierce. His Microsoft has said it will
The business, one of a surprising ranean, in Greece, Turkey, Croatia and company has a long way to go but is stagger the upgrades to
number of start-ups to have battled Spain. The company is looking to trying hard to make a mark with its dif- make sure the process goes
through the Hellenic economic mael- expand into Italy and Montenegro. ferent business model focusing on skip- smoothly. To get the most
strom, has echoes of “sharing econ- Greece’s well-chronicled economic pers as well as boats. out of the software, though,
omy” pioneers Airbnb and Uber. crisis has seen the demise of many busi- “We aim to match the right local skip- requires a touchscreen,
Mr Fiorakis certainly sees yachts as nesses, a sharp rise in unemployment per to a particular party boat. If you are which for many will mean
underused resources. “Take a stroll and an inevitable brain drain. a group of young people in their twen- buying a new machine —
around any marina and you’ll see they Against this grim background several ties we won’t assign a skipper in their Opening Windows: New and PC makers still pay
are packed with boats that always seem hundred start-up companies have fifties, otherwise it will be like going on system feels coherent Microsoft for the software.
to be docked. They are like these won- emerged in the country as their a holiday with your parents,” he says.
Friday 31 July 2015 ★ FINANCIAL TIMES 11


Fantastic nonsense of a mission implausible C L A S S I CA L M U S I C

BBC National Orchestra of Wales

BBC Proms, Royal Albert Hall, London
FILM Richard Fairman

Nigel It is said that as many as 50m children in

China are learning the piano, each hop-
Andrews ing to follow Lang Lang on the road to
so plentiful, and for them the path to rec-
ognition in the west may be more diffi-

oday is the day the IMF’s cult,buttherearesignsofprogress.
luck runs out,” says some- Last year at the Proms Chinese com-
one in Mission: Impossible poser Qigang Chen’s music made its bow
— Rogue Nation. Sounds and he is back this year, in the company
like a case for the Financial of the BBC National Orchestra of Wales
Times. But only those estranged from and Chineseconductor,XianZhang.
Planet Tinseltown will think it’s Chris- In the Royal Albert Hall a hush
tine Lagarde in crisis rather than Ethan descended over Chen’s quietly rapturous
Hunt, alias Tom Cruise. In the block- Iris dévoilée. It had to — anything less and
buster summer’s first major raid on our the spell conjured by the gently wafting
wits and wallets — sequel codename breeze of sounds he creates would be
“MI5” (and the British connotation broken. Like so many composers from
proves apt) — the Impossible Missions the east, Chen was seduced early on by
Force puts its lives on the line to combat French composers such as Debussy and
The Syndicate, a group of global agents/ Ravel and moved to Paris to study with
spies gone terrorist. Messiaen. His intensely sensitive music
The Syndicate’s present profile: world- carriesonwheretheyleftoff.
domination nutjobs putting out a con- Iris dévoilée forms a kind of rainbow
tract on, among others, the Austrian bridge between its suggestive Chinese
chancellor and British prime minister. Immersive: Tom Cruise palace of cards. McQuarrie’s trick is to for an auteur back then — is our halluci- documentary that seems never to end poetry, intoned in the style of Peking
Team Cruise starts its operation, accord- in ‘Mission: Impossible — stopyousteppingback.Inthissurround- natory creative Everyman. Trick effects and should probably never have been Opera, and the pastel-shaded world of
ingly, by storming the Vienna Opera Rogue Nation’. Below sensation world you might step into a giantise him atop a roof or miniaturise begun. The late filmmaker Albert Mays- the French impressionists. Meng
House during a VIP performance of right: ‘Iris’ is a gun, a bomb, an oubliette or a parallel him in a bubbling glass of beer. He les, a name inscribed in legend (Gimme Meng, costumed like the Princess
Turandot. “None shall sleep,” sings the documentary portrait of dimension. For the confessional record mounts a speeding truck to hand-crank Shelter) and lavished with peer-approval Turandot, chanted the brief Chinese
tenor and he is on the nose. Writer- New York fashion guru I spent the first half hour wearing film of joyriders in a car. He scales cranes love bites (“the best American camera- texts. Two Finnish sopranos, Anu Komsi
director Christopher McQuarrie (who Iris Apfel 3D glasses (available on a foyer stand) or towers. He vanishes altogether, much man”, J-L Godard), completed before his and Piia Komsi, soared in wordless radi-
scripted The Usual Suspects) has caught since I thought the film was in 3D as of the time, to leave the screen to his recentdeaththisportraitoftheeccentric ance. The orchestra made seductive
Brian De Palma Disease: a form of cine- well as Imax. It isn’t. But I didn’t notice feveredkaleidoscopes. NewYorkfashionguruIrisApfel. noises, overlaid by the very delicate
matic ADHD in which nothing stands until I glanced round belatedly at un- If you think Inception invented the Hers was a piquant life: boutique strumming and bowing of the Chinese
still, madness is licensed, and action/ spectacled colleagues. That’s how bent-double cityscape, think again. If owner, interior decor adviser to the pipa, zheng and erhu. Time passed; 40
suspense showdowns are screwed to the immersive MIRN is. You believe it’s all you think Jaws invented the teeming, White House. But in her nineties Iris — minutes to be exact. Eternal beauty
screaming orgigglingpoint. round you and all over you even when, telephoto-shimmered holiday beach- more briskly and beatifically caught in demandspatience.
After Vienna we get a car and motor- technically,itisn’t. scape, re-think again. Also here: facto- the 2010 documentary Bill Cunningham On either side Zhang and the BBC
cycle chase through downtown Casa- A classic comes to life again, restored ries, taverns, picture theatres, none stay- New York — has run out of fresh National Orchestra of Wales offered the
blanca; high-wire escape ballets between Mission: Impossible — and re-scored, in Dziga Vertov’s Man ing still for long before disbursing some things to say and do. The Iris outfits, contrast of red-blooded performances
skyscrapers; and fog, murder and red Rogue Nation with a Movie Camera. The 1929 Soviet secret, mischievous visual reality. Multi- combining haute couture labels of Russian symphonies. Prokofiev’s
telephone boxes in a London so Christopher McQuarrie film recently voted best documentary of ple exposure and fast cutting turn rush- with clearance-sale clobber (and “Classical” Symphony was steadier,
headlong-retro we expect Jack the AAAAE alltime(inBritishfilmperiodicalSight& hour traffic into a poetic pandemonium. beads, beads, beads), still tougher in character than usual. Rach-
Ripper to appear. Add dialogue so Sound) isn’t quite a documentary at all. And sometimes the film slows to twirl impress with their bunged- maninov’s Symphony No. 2 boasted well
Duchamp-surreal it sounds like an Man with a Movie Camera It’s a firework show in a moviemaker’s disparate facets like a magic goblet, together elan. The Iris output, drilled playing and outgoing certainty of
Exquisite Corpse game of wordplay. “Sir, Dziga Vertov mind: a symphonic montage of a “day in flashing successive pictures — a shop a verbal voguing of drawling vision, rather than subtle colours and
Ethan Hunt is the living manifestation of AAAAA the life a nation”, across three cities, that window, a face, a gloved hand, a manne- “wisdoms” and waspish put- melancholy. It was a generously
destiny.” (What does that mean? Should bursts, crackles, fizzes and could take quin — to tease us with the richer truths downs, is ready to wear in a planned Prom, well attended, not
we,need wecare?) Iris your eye out (you almost feel) if you or constructions that can come, the film- whole different sense: withoutitsrewards.
It’s all fantastic nonsense. If you Albert Maysles don’tdodgeandweave. makerseemstosay,fromourputtingtwo wearing our patience and
stepped back, you might see the film and AAEEE A tripod-wielding camera buff in andtwotogethertomakefour. politeness after 18 minutes, BBC Proms run to Septem-
its story plausibility collapse like a boots and riding breeches — proper togs Iris, for punitive contrast, is a nevermind80. ber 12,

Radicalism — but in cautious doses

A few masterpieces stand out grey. The beams of energy radiating
from his features foreshadow the short-
from the crowd in a New York lived Futurist spin-off that he and Gon-
show of German and Russian charova dubbed Rayonism.
The Neue Galerie displays the Rus-
modernists. ByAriella Budick sians alongside figurative paintings by
their German contemporaries, espe-
cially members of the expressionist

itsch and radiance wrangle at group Die Brücke. But it’s a rigged
the oddball exhibition of Ger- match, because most of the Brücke
man and Russian modernism paintings come from its own stellar col-
at New York’s Neue Galerie. lection or from the private holdings of its
This agglomeration of medi- co-founder, Ronald Lauder. In this con-
ocrity and downright dregs, punctuated text, even lesser German lights such as
by the occasional masterpiece, is an Erich Heckel, Max Pechstein and Karl
unusual outing for a museum that usu- Schmidt-Rottluff look like brilliant ava-
ally hews to stellar standards. But if tars of the future. In their search for
you’re up for a spirited mishmash of the fresh conventions, the young Germans
bold and the ugly, head over to see Rus- turned to African carvings and wood-
sian Modernism: Cross-Currents of German cuts, fell under the sway of Van Gogh and
and Russian Art, 1907-1917. Die Brücke: Max Pechstein’s ‘Woman Gauguin, and added to this French colo-
Before they discovered what revolu- with Red Fan’ (1910)— Neue Galerie New York nial brew a soupçon of the Norwegian
tion was really like, Russian artists of Munch. They clutched at crudeness with
the avant-garde swooned over France, about 500 examples of the movement religious fervour, mistaking their rejec-
the source of all things radical. They that time forgot. It would be lovely to tion of harmony for emotional truth.
bathed their souls in the perfumes of say that his collection represents a Heckel’s nude portrait of the group’s
Provence, incorporating Cézanne’s hoard of rediscovered masterpieces, but jaundiced muse, Fränzi, might seem
trowel-like strokes and earth-toned pas- the truth is that Boris Grigoriev’s “Café intolerably creepy. The little girl was 10
sage. Petr Konchalovsky’s self-portrait Chantant” (1913) is just too, too Tou- when she was anointed the movement’s
of 1912 could almost be one of the mas- louse-Lautrec; Konchalovsky’s pseudo- mascot and here she looks like an under-
ter’s, his beige jacket breaking up into post-Impressionist “Still Life: Checkers” age Olympia, lying back on her chaise
blotches, skin merging into a claylike (1916) gets stuck in its murky, muddy with a doll in place of the original’s black
beard. Ilya Mashkov’s still-lifes eerily palette. Altogether, this philo-French cat. And yet Heckel’s rude comment on
summon Cézanne’s apples, pears and vein of Russian art comes off as retro- Manet glows with obscene authenticity
pitchers to a fruity seance. grade and derivative. — at least next to Aristarkh Lentulov’s
For those familiar with the fertile but There are a couple of notable excep- horrific redo of “Le déjeuner sur
doomed period of pre-Soviet modern- tions. Natalia Goncharova and Mikhail l’herbe”, with its doughy nudes lounging
ism, the term suggests a slideshow of Larionov, who were partners in love and alongside the nattily dressed artist.
abstractions: the squares of Malevich, El art, transcended the typical composi- The international showdown is espe-
Lissitzky’s narrative geometries or Tat- tions of their peers. In her early work, cially flattering to Ludwig Kirchner, the
lin’s spiralling monument to the Third Goncharova inflected a Fauvist lan- leader of the German pack. He’s repre-
International. But this exhibition taps a guage with hints of primitive art, ortho- sented by a female nude so original she
much more minor tributary: figurative dox icons, esoteric religion and visions has no clear point of comparison. Bony
artists who dispensed their radicalism of the primeval farmer. Her “Pond” and stiff, with ringed eyes and an elabo-
in cautious doses, and who have accord- (1908-09) whisks the rainbow-hued rate feathered hat, she perches awk-
ingly been largely ignored. exoticism of Gauguin together with her wardly at the edge of a mattress, a single
The bulk of the works — 39 paintings homeland’s folk heritage, conflating red nipple dangling like a street light.
— come from the vaults of Petr Aven, a Tahiti with Novgorod. Larionov also Besides Kirchner, the only artists who
collector who, in his pursuit of this mines the Fauves for his 1912 self-por- emerge triumphant are Wassily Kandin-
strange subspeciality, has amassed trait, smudging his face with blue and sky and his partner Gabriele Münter,
whose exquisite townscapes of Murnau,
Derivative: Petr Germany, are the show’s true highlights.
Konchalovsky’s Togethertheyevolvedaradiantstylethat
‘Still Life: bridged the real and imagined. His work
Checkers’ glows;hersdazzleswithheavenlyhues.
(1916) — Petr Aven Kandinsky has received the lions’
Collection, Artists Rights
share of the credit for their achingly
beautiful aesthetic, but that is because
he claimed it. As Münter pointed out, he
“had to express his ideas in words, so he
constantly formulated new theories of
art”. She never leapt into the vortex of
abstraction, but remained content with
the figurative modernism that this show
champions. The best that could come of
the Neue Galerie’s efforts would be the
full-blown retrospective she deserves.

To August 24,

12 ★★ FINANCIAL TIMES Friday 31 July 2015

The hard bit

Major oil companies’ refining and marketing divisions have been more
profitable in recent quarters because rising demand for transport fuel and
lower crude oil prices have boosted refining margins. Poor communication
of cost-cutting plans had made Shell cheaper than its competitors

Twitter: @FTLex Email: Indicative European refining margin 2016 valuation
$ per barrel Enterprise value/earnings ratio*

Nintendo: called an Inkling. For investors, the 6 Procter & Gamble:

name is apt. The success of one game is Shell
get splatting a small but timely reminder of play it as it lies
Critics of Nintendo’s console business
Nintendo’s strengths. If the company
can show signs of turning round its
4.3 4.7 In golf there is an old joke about how to
have clearly not played Splatoon. The weaknesses, it can repaint its future. 4 increase one’s driving distance off the
Japanese games maker’s virtual tee: just hit the ball and run backwards.
paintball shoot-em-up, in which the Procter & Gamble may have just
aim is to recapture the Zapfish from Nokia Alcatel: discovered the corporate version of this
the evil Octarians terrorising Inkopolis, 2 ruse. Yesterday it announced earnings
has been a blockbuster. After selling groomzilla BP per share for its just-completed fiscal
1.6m copies in under three months, Total year of $4.02, a 2 per cent dip from the
Splatoon pushed Nintendo into profit
last quarter, against expectations:
The most amazing day of your life. Or
possibly just the most expensive. The 0
5.0 5.8
previous year. And when sharing its
outlook for the upcoming year, it said
analysts had forecast losses. Yesterday plans for Nokia and Alcatel-Lucent to its 2016 EPS would be up mid-single
the shares rose 8 per cent due to those head down the aisle are proceeding 2009 10 11 12 13 14 15 digits from 2015. But the rub is that the
numbers. Take that, Octarians. quicker than expected. That should * Earnings before interest, taxes, depreciation, targeted growth was based on a starting
FT graphic Sources: Société Générale; Credit Suisse amortisation and exploration charges
The success of Splatoon shows that surprise no one. Neither company is point not of $4.02 — but several metres
Nintendo, the company that gave the exactly a blushing young bride — both back from the tee, at $3.77.
world Mario and Donkey Kong, is still have insight and scars from their many Promises are like babies: easy to each year since 2010. But the good management’s plans are not only for How so? After a buying spree lasting
good at producing hit games. Even its prior combinations. make, hard to deliver. That may be news for earnings ends there. the BG deal but apply more widely. decades, P&G is busy shedding 100
disappointing hardware — unit sales of To make sure the union works, both why Royal Dutch Shell’s The upstream business in the They are also a clear recognition that brands that it discovered don’t actually
the Wii U fell nearly one-tenth year on companies have been clear it is a management had avoided offering Americas lost money for the second the current oil price weakness could contribute much to profits. Its
year — did not dent the game’s appeal. takeover, not a merger of equals. too many pledges on cost cutting consecutive quarter and refining last several years; management had remaining portfolio will include
Nintendo had been on the up even Nokia’s chief Rajeev Suri is in charge while closing its acquisition of BG margins will probably fall back in the refrained from acknowledging that nappies, razors and laundry detergent.
before Splatoon. In mid-March this and will lead the combined company. Group. But it left the market second half, especially as US based but have clearly reconsidered. Most recently, it has sold off its
year, the company said it had Alcatel-Lucent chief Michel Combes confused; Shell’s share price has refineries have increased their exports The change in tack is welcome, as Duracell battery unit to Warren Buffett
partnered Japanese software company will step down on September 1. done badly since the bid. So in of diesel to Europe. Shell knows it is a strong commitment to the and a range of hair and beauty brands
DeNA to develop its games for While this is not a shotgun wedding, yesterday’s second-quarter results, cannot count on the downstream dividend. This should mollify to Coty. The company says, because of
smartphones — the first time in there is time pressure. Mr Suri is keen management abandoned its earnings bounty lasting much longer — shareholders, even if cash flow post the vagaries of accounting, the beauty
Nintendo’s history that its games will to create a global competitor to reticence and nailed its colours to another reason for the volte face on capital spending (and asset sales) still business should be treated as a
be sold on phones. Since then, the challenge Huawei and Ericsson before the mast. cost guidance. does not cover the payout. discontinued operation. As a result, it
shares have returned 56 per cent to the the next wave of mobile investment — It was a good moment to do so. Shell will cut jobs (including Much of Shell’s recent says its core ongoing earning base
4 per cent Topix return. building 5G networks — begins. Shell’s earnings, at $3.8bn, were expensive contractors) and take a $5bn underperformance versus peers can should be the lower figure of $3.77.
Yet the shares do not reflect all the Combined, Nokia and Alcatel-Lucent above expectations. European chunk out of its investment be ascribed to management’s failure That was not the only irritant in its
growth to come: the new games will be would have had €26bn of revenues last refining margins have been at their programme. Pro forma capital to communicate. The shares now results. The classic investment case for
released towards the end of this year. year, compared with €24bn and €43bn strongest in several years. Refining spending will drop to $35bn in 2016. look cheap. Given yesterday’s change a company such as this is simplicity
Analysts have high hopes. Earnings per for Ericsson and Huawei, respectively. and chemicals profits in the first half Most of these adjustments will come at in tactics, the valuation discount can and predictability: an investor pays 20
share forecasts for the year to March The plans are clipping along nicely. surpassed the full-year average of Shell, reflecting a desire to clarify that now start to close. times earnings for a consumer staples
2017 (likely to be the first full year of The big day is still expected early next company whose earnings do not
contribution from smartphone games) year. Regulatory approval has been deviate much during economic cycles.
have more than doubled since the received in nine markets, including Strong cash flow is distributed to
announcement. That looks attainable, both Europe and the US. Both he is distracted by the minutiae of costs fell sharply to £459m, RBS has set more than double the level in the first shareholders as sizeable dividends.
if Nintendo and DeNA can make good companies reported second-quarter corporate nuptials, the more time aside £4.6bn of provisions to cover quarter. RBS will need a common And while conversion of revenue and
games. results yesterday that beat expectations rivals have to focus on taking business. issues including an impending fine for equity tier one capital ratio above its profits into cash flow has historically, the Candy Crush and alleviated worries after Nokia’s mis-selling US subprime mortgage internal 13 per cent hurdle before it been strong, P&G forecast disappoint-
developer, made net profits of $800m first-quarter network margins missed securities. Uncertainty on those is one will seek permission to pay dividends ing 2015 growth in revenue of perhaps
in the 12 months to March. Over the 12 expectations by 6 percentage points. Royal Bank of Scotland: reason RBS trades at just 0.8 times — it does not expect to do so before the up a couple of percentage points.
months to June (including the recent Shares in both companies rose. tangible book value. first quarter of 2017. But there is swift That unexciting prognosis prompted
good quarter), the more established There are still some key people to step by step All the more reason for chief progress on capital: the bank’s ratio the shares to slide 3 per cent, on top of
Nintendo made $630m. convince: regulators in Japan, Taiwan, executive Ross McEwan to speed rose sharply in the quarter to 12.3 per a 15 per cent fall since January. A
The upside from smartphones may India and China. The last two are main Think of it as a downpayment. Royal balance sheet shrinkage and cut costs. cent. This year’s sale of the remainder sometimes fractious call with analysts
appear to be in the price: Nintendo growth markets and approval in China Bank of Scotland’s unexpected £293m So far so good: by whittling down RBS’s of Citizens will lift it further. showed that patience for a turnround is
trades on a multiple of 36 times may not be straightforward. Once second-quarter profit — up 27 per cent corporate and investment bank and its But there is another, more irksome beginning to wear thin and that new
forecast earnings for the year ending combined, Nokia’s market share plus from a year ago — triggered a brief bad bank, total risk-weighted assets ratio to fix: the group’s 3 per cent chief David Taylor’s honeymoon has
March 2017. King trades on eight times its stake in Alcatel-Shanghai Bell would share price pop yesterday. Lower bad have fallen to £326bn, from £392bn a return on tangible equity. The pace of ended before it started. P&G no longer
— the market expects no growth. But if give it more than double the 10 per loan and misconduct charges, and a year ago. The deconsolidation of RBS’s turnround should embolden the has any room to run backwards. It is
Nintendo has learnt its lesson from the cent market share limit that Chinese fillip from its Citizens bank in the US, Citizens, once sold, will shave off more. government to start selling taxpayers’ just going to have to work on its swing.
underwhelming Wii U there is officials have for foreign companies. were to thank for the improvement. And, if annualised, cost savings should 78 per cent stake in RBS, and with
potential for more earnings upside, But Mr Suri is highly regarded in China But the state-controlled UK lender hit his full-year target. But it costs greater liquidity comes greater
which would push the multiple down. and few expect this issue to be a deal faces a number of hurdles before money to save money: the £1.1bn investability. But returns are what Lex on the web
For notes on today’s breaking
Players in Splatoon can take control breaker. profits can be shared with investors. restructuring charge, mostly at the really drives the share price. No stories go to
of their own customisable character, The danger is more that the longer Although misconduct and litigation corporate and investment bank, was pressure then Mr McEwan.

1010 Today’s temperatures

1000 Abu Dhabi Sun 45 113 Madrid Thunder 31 88

Amsterdam Fair 19 66 Manila Sun 33 91
Vancouver 81 Athens Sun 36 97 Melbourne Fair 13 55
Winnipeg Atlanta Fair 34 93 Mexico City Fair 26 79
7 77
85 LOW Beijing Cloudy 29 84 Miami Thunder 33 91
9 Montreal 8 Belgrade Cloudy 22 72 Montreal Fair 27 81
Tor to Berlin Fair 20 68 Moscow Fair 22 72
HIGH 13 82 Bermuda Fair 30 86 Mumbai Rain 30 86
6 1020 ew York Bogota Drizzle 19 66 Nassau Fair 32 90
98 91
90 C ago Brussels Sun 20 68 New York Sun 33 91
9 Buenos Aires Shower 19 66 Nice Sun 28 82
90 Caracas Fair 32 90 Oslo Fair 18 64
72 91 Denver 89 90 Chicago Sun 31 88 Paris Fair 24 75
87 93 OW
87 Copenhagen Cloudy 17 63 Prague Fair 22 72
Dallas Fair 36 97 Reykjavik Fair 15 59
HIGH 1 0 2 0
89 Delhi Cloudy 33 91 Rio Sun 28 82
Los 81 84 Dubai Sun 42 108 Rome Sun 30 86
Angeles 94 Dublin Rain 16 61 San Francisco Cloudy 22 72
1020 91 Edinburgh Shower 16 61 Seoul Fair 30 86
97 Frankfurt Sun 24 75 Shanghai Sun 35 95
94 Geneva Sun 24 75 Singapore Thunder 30 86
98 Hamburg Fair 17 63 Stockholm Shower 18 64
Houston 91 Helsinki Thunder 19 66 Sydney Sun 17 63
94 Miami Hong Kong Sun 30 86 Taipei Fair 34 93
Honolulu Cloudy 33 91 Tel Aviv Sun 34 93
Jakarta Shower 32 90 Tokyo Sun 34 93
Karachi Cloudy 31 88 Toronto Fair 28 82
Lima Cloudy 20 68 Vancouver Sun 26 79
Lisbon Fair 25 77 Vienna Sun 26 79
Forecasts by London Fair 22 72 Warsaw Sun 20 68
Wind speed Los Angeles Sun 27 81 Washington Sun 34 93
in MPH Luxembourg Sun 22 72 Zurich Sun 24 75

ACROSS 4, 22 Highly unlikely it could be

CROSSWORD 1 Perfunctory choice of Simba in the distance (7,2,3)
No. 14,997 Set by GAFF academics (3,5) 6, 15 No way for Navy to demand
5 Bank Arabs use a lot for capital sunshine without first dodging
        (6) storm (5,2,1,5,2,7)

10 Measuring volume of disco 7 Leads a choir rehearsing in D
regularly, putting youngster sharp (5)
  first (5) 8 A rat claims he’s raised the bar
11 Lines indicating air is nearly (8)
gone (4,5) 9 A guess is bad manners (6)
  12 Producing dramatic literary 16 One’s trying to get away by 6 –
openings not unknown (9) pack anti-left-wing circular (9)
13 Event where the winner gets 17 Hide lover’s desire during
the most bucks (5) endless provocative dance (8)
14 Mark pens first rate song (6) 19 By far extremes of anarchy lies
 15 See 6 Down chaos (6)
18 Partial lift-off by Armstrong, 20, 21 Using second cue, hit a
maybe? (7) terrible long shot (7,6)
 20 Take in old man with tablets 23 Turnaround of character
back to front (6) needed after cricket match
22 See 4 Down disgrace (5)
24 Hot IT man’s corrected bug
  25 People start hysterical cries
about election (3,6) Solution 14,996
26 Wore ragged (3,2) % $ / 8 6 7 5 $ ' ( & + , &
  27 Detention given by master 8 , & ( , ( 5
during break (6) & 2 0 ( $ & 5 2 6 6 2 5 * <
No. 14,845 Set by NEO
1 Important Viking one among best 1 Hard maths topic written up to find
friends (5,4) circumference (5)
  6 Socialite with appeal makes left- 2 Love comes in no time, wildly, for
side entry (5) passion (7)
9 Brazilian city as far as we’re 3 Disagreed also with a thousand
concerned ungovernable (7) children (4,5)
10 Obscure English knight against 4 Bond gets to a casino and is
European rebuffed (7) beaten (11)
11 Poor nation’s little island in hot 5 Beast summarising Tokyo-London-
   current (5) Tokyo trip? (3)
12 Caught flamboyant cardinal in 6 Painter died hungry (5)
Seventh Heaven? (5,4) 7 Discount supermarket name in
14 Notice flock encircles houses (3) GB’s upturn with loss on top (7)
15 Alarmist financier reversed into 8 As 007 mission to Spectre might
second vehicle bearing right (11) be? (3-6)
17 German poet’s the writer 13 Dope sheathes weapon in open
embracing pub vocalist (11) coat (11)
19 Moggy fur with hole concealed? (3) 14 Soul an unknown factor in some
20 Earl, King and Queen on men? Fearless pilots? (9)
   Hampshire river’s banks (9) 16 Girl having paddle round saw
22 Ambassador in temple finds grain manor demolished (9)
(5) 18 Mistress Gwynne about to be
24 Ardent Green must change leader announced in sport (7)
(7) 19 Side issue for Clintons (7)
26 As one’s despicably mean, small 21 Having ducks in horses area
tips for servants materialise (2,5) causes commotion (3-2)
JOTTER PAD 27 Sauce unfortunately knocked over 23 Crime article Financial Times
contains sulphur (5) provides (5)
28 Related martial artist stops at 25 Sick at first, old man here for
Bedouin residence (9) healthy holiday (3)
Solution to Saturday’s prize puzzle on Saturday February 14
Solution to yesterday’s prize puzzle on Monday February 16
Winners’ names will be printed in Weekend FT

. 3 7 8 ( & 0 6
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Friday 31 July 2015 ★★ 13

Nintendo Shell Nokia Dollar index Two-year US Xetra Dax Brent oil Brazilian real/
Key content Accounting Treasury US dollar
for Netflix’s valuation 8.3% 4.2% 7.53% 0.5% 3bp 0.4% 0.1% 1.4%
Y22,195 £18.39 €6.43 97.49 0.73% 11,257.15 $53.31 R$3.3788

Starwood and IHG discuss link-up Short

3 Talks could lead to world’s biggest hotel chain 3 Wyndham also likely to eye US group
talks with Starwood with a view to a Mr Solomons said that IHG’s strategy of dealmaking and property sales,
LONDON combination of the businesses”. was to grow organically. He said that the ‘We signed including the launch of a £1bn-plus Moore
Starwood in effect put itself up for sale company had signed deals to manage more deals hotel group in the UK by Lone Star, the
InterContinental Hotels has held early- in April, appointing Lazard to explore a 231 hotels in the first half. US private equity group, this month.
stage talks with Starwood Hotels & “full range” of strategic and financial “There is a lot of noise around consoli- in the first Starwood shares were down 5.4 per One quirk for which the UK is regularly applauded is the
Resorts over a union to create the options. The move came after Frits van dation. If you look back a few years it half than cent to $78.20 by the close in New York, infrequency with which it has to worry about rolling over
world’s largest hotel group, according to Paasschen, Starwood’s former chief was real; now it is effectively organic,” and IHG shares surged 4.6 per cent to national debt.
two people familiar with the discus- executive, quit in February as the com- he said. “We have had extensive organic any time close at £27.43 after the Financial Times The average lifespan of bonds issued by the UK, known
sions. pany struggled to maintain growth. consolidation: we signed more deals in since 2008’ reported the talks. as gilts, is just over 16 years, according to the Debt Manage-
The informal talks were very tenta- Starwood is hoping to decide on a path the first half than any time since 2008, IHG is working with advisers includ- ment Office. Compare that to the US, where the average
tive and Starwood may choose another by the end of the year but offered no we are building new brands and buying Richard ing Bank of America Merrill Lynch on its debt maturity is about 5.5 years, or Germany where it is
suitor or pursue another strategy, both guidance at its second-quarter results up little brands like Kimpton.” Solomons, IHG talks with Starwood, according to one nearly 6.5 years.
people cautioned. yesterday. The hotel industry in the US, UK and person close to situation. So far, so prudent. In a world of bloated government
Starwood may be conducting parallel Richard Solomons, IHG chief execu- Europe is 10-15 per cent above its 2007 Starwood’s market capitalisation is debt, short-termism can be a dangerous habit. Shorter-
talks with other interested parties, one tive, declined to comment about Star- peak in terms of revenue per available $13.8bn, while IHG’s is roughly $9.5bn, term bonds increase the threat that rising interest rates
person added, with candidates likely to wood as he reported a 21.5 per cent rise room, according to analysts at Morgan but Starwood filed plans last month to could have a dramatic impact on the cost of servicing debt.
include US hotel group Wyndham. in first-half pre-tax profits to $458m. Stanley. spin off its vacation timeshare business That is why “locking in” low rates in sovereign debt mar-
IHG said that it was not currently “in Starwood declined to comment. The fizz in the sector has seen a wave into a separate publicly traded business. kets has become a political mantra echoed across Europe,
Asia and the US. This year Mexico issued a rare century-
long bond while Spain and Canada have recently stretched
the maturity of their debt into unprecedented territory
with their debut 50-year bonds.
In the year to date, governments around the world have
Torque show sold $69.4bn of international bonds maturing in 30 years
Amazon snaps up or longer, compared with $62bn in the same period last
year, according to Dealogic.
exiting Top Gear trio But longer-debt profiles do not automatically equal
lower risk. Sweden, which borrows relatively little and has
a gold-plated triple A rating, sells Europe’s highest propor-
Amazon has won the race to sign the tion of short-term debt. Greece, locus of the eurozone debt
departing presenters of BBC’s Top Gear crisis, was granted a relatively long debt maturity by its
TV show, as internet groups continue to creditors before the recent deadlock.
encroach on traditional broadcasters’ There is also a reason that the office in charge of selling
terrain by securing big deals to produce gilts has avoided setting a target for long dated debt in spite
original content, write Matthew of government rhetoric favouring long-term planning.
Garrahan in New York and Murad The UK’s lengthy debt profile is more the product of luck
Ahmed and Henry Mance in London. than prudence, born of the domestic pension industry’s
The world’s largest online retailer said near-insatiable appetite for long-dated assets, which keeps
that it had signed a deal with Jeremy the cost of long-term borrowing cheap. If the cost of long-
Clarkson, James May and Richard term borrowing rose, the argument for a lengthy average
Hammond to present a television series debt maturity profile would change.
that will be premiered next year. Because the same audience does not exist to the same
The move will pit the trio against the extent elsewhere, borrowing over shorter periods is
BBC’s relaunched Top Gear show, led by cheaper. Countries hoping to elongate their debt profiles
Chris Evans, while boosting Amazon’s will need to encourage buyer demand to keep up.
video-streaming service in its battle with
Netflix, which is estimated to have four
times as many subscribers in the UK.
UK government debt
Average maturity (years)
The BBC sacked Mr Clarkson in March
for physically and verbally abusing Top 18
Gear producer Oisin Tymon, leaving the
BBC to reinvent its flagship car show. 16
Amazon will try to tap the hosts’ 14
popularity in countries such as the US The average
and Australia. But some in the industry 12 lifespan of UK
have questioned whether the trio will be sovereign debt is
able to replicate their success, saying 10 16 years, against
that one Top Gear imitator, Fifth Gear, 2004 06 08 10 12 15 5.5 years in the
flopped. The deal is for three series of an US and 6.5 years
as yet untitled show that will be available Source: UK DMO in Germany
only to Amazon Prime subscribers.
Gallo Images/Getty Images

Former US banking regulator Bair

quits Santander board after 18 months
TOM BRAITHWAITE — SAN FRANCISCO would interfere with my responsibilities as the bank’s executive chairman
to the college,” Ms Bair wrote in a letter following his death last year.
Sheila Bair, the former US banking to the Systemic Risk Council, a regula- Since taking over last September, Ms
regulator, has resigned from the board tory advocacy group, whose chairman- Botín has appointed a new chief execu-
of Banco Santander, ending a some- ship she is also giving up. tive, replaced the heads of its US opera-
times uncomfortable 18 months at The departure is expected to be tions and hired a new chairman of its UK
Spain’s largest bank. announced by Santander as soon as subsidiary. She also appointed three
Shell cuts spending and today and becomes effective at the end new independent directors to its board.
jobs after plunge in crude Ms Bair, who was head of the Federal of the third quarter, according to people An outspoken critic of big banks, Ms
Deposit Insurance Corporation during familiar with the matter. Santander Bair won both friends and enemies for a
Shell will cut its capital spending the financial crisis, is leaving to concen- declined to comment. tough stance at the FDIC that often saw
20 per cent and axe 6,500 jobs this trate fully on a new role as president of The bank yesterday reported a 17.6 her clash with other regulators, particu-
year as it prepares for a ‘prolonged Washington College in Maryland, per cent rise in second-quarter net larly at the US Treasury.
downturn’ in crude prices by curtailing according to a letter from her, seen by profit to €1.71bn, helped by reduced She was protective of the FDIC’s insur-
projects. It said investment would be the Financial Times. provisions for bad loans in the UK, Spain ance fund and clashed with other
$7bn lower than last year’s level. “Though I have very much enjoyed and Portugal. officials in her desire for more wholesale
Report iPAGE 14 my service on the board of this historic The resignation is the latest in a string change at Citigroup, which was then
Lex iPAGE 12 banking institution, the frequent trips of personnel changes at the bank since close to failure.
to Spain are time-consuming and, I fear, Ana Botín succeeded her father Emilio Santander profits up page 15

Companies / Sectors / People

Companies Centerview Partners................................1 InterContinental Hotels.......................13 Samsung Electronics.............................14 Vox Media....................................................17 Bewkes, Jeff................................................14
Airbnb............................................................10 Cisco..................................................................6 JBF Industries...........................................14 Santander.....................................................13 Warner Brothers......................................14 Botín, Ana....................................................13
Airbus’s..........................................................14 Citigroup.......................................................13 JPMorgan.....................................................15 Schneider Electric......................................1 Whole Foods...............................................21 Clark, Kevin.................................................16
Alcatel-Lucent...........................................12 Comcast.........................................................17 KKR..................................................................14 Siemens................................................1,21,22 Xiaomi............................................................14 Combes, Michel.........................................12
Alibaba...........................................................17 ConocoPhillips...........................................21 Sky Sports...................................................10 Yahoo...............................................................6 Cook, Tim....................................................22
Amazon..........................................................13 DeNA...............................................................12 Malaysia Airlines.......................................4 SoftBank.......................................................14 Sectors Cryan, John.................................................15
Anheuser-Busch InBev...........................1 Delphi Automotive.................................16 Microsoft......................................................10 Sony................................................................14 DeWalt, Michael Lynn..........................22
Aerospace & Defence...........................14
Apple........................................................14,22 Deutsche Bank..........................................15 NBCUniversal.............................................17 SoulCycle......................................................15 Fields, Mark................................................22
Areva..............................................................16 EDF..................................................................16 Spotify...........................................................10
Netflix.................................................10,13,14 Banks.........................................3,12,13,15,20 Jain, Amit.....................................................14
Audi..............................................................1,22 Ericsson.........................................................12 Starbucks.....................................................22
Nike.................................................................22 Energy............................................................16 Kaeser, Joe.....................................................1
Avic....................................................................3 Facebook.............................................6,17,21 Starwood Hotels......................................13
Nintendo.......................................................12 Media.............................................13,14,16,17 Klingler, Christian.......................................1
BG Group................................................12,16 Ford..............................................................1,22 TalkTalk........................................................21
Noble Group..............................................20 Oil & Gas..........................................12,16,20 Knoche, Philippe......................................16
BMW................................................................16 Freeport-McMoRan................................22 Telstra............................................................17
Nokia..........................................................12,21 Personal & Household Goods.........12 Li, Robin........................................................17
BP...............................................................16,20 General Dynamics...................................14 Tencent.........................................................17
Ola....................................................................14 Pharmaceuticals..........................................1 McEwan, Ross......................................12,15
Babcock.........................................................21 General Motors.........................................16 Tiger Global................................................14
Panmure Gordon.....................................21 Retail...............................................................14 Naouri, Jean-Charles.............................14
Baidu...............................................................17 Goldman Sachs........................................22 Time Warner..............................................14
Blackstone...................................................22 Google........................................................6,17 Peugeot............................................................1 Tullow Oil.....................................................21 Support Services.....................................10 Plepler, Richard........................................14
Boeing’s.........................................................14 HBO.................................................................14 Procter & Gamble...................................12 UBS..................................................................15 Technology............................................14,17 Robb, Walter...............................................21
Bombardier.................................................14 HellermannTyton...............................16,21 Relativity Media.......................................16 Uber...........................................................10,14 Telecoms.......................................................12 Solomons, Richard..................................13
Bunge..............................................................21 Huawei.....................................................12,14 Receptos..........................................................1 United Technologies................................1 Travel & Leisure......................................13 Stevenson, Ewen......................................15
BuzzFeed......................................................17 IBM.....................................................................6 Renault.............................................................1 Vedanta Resources................................21 People Suri, Rajeev.................................................12
Caterpillar.................................................1,22 Idemitsu........................................................16 Royal Bank of Scotland.................12,15 Volkswagen................................................22 Adkerson, Richard..................................22 Tricoire, Jean-Pascal................................1
Celgene.............................................................1 Incrediblue...................................................10 Royal Dutch Shell..................12,16,20,21 Volvo...............................................................16 Antonio Álvarez, José...........................15 Van Beurden, Ben...................................16

© The Financial Times Limited 2015 Week 31

14 ★★ FINANCIAL TIMES Friday 31 July 2015


Uber to step up gear in $1bn India drive Matthew

US ride-hailing app group In June, it was revealed Uber planned [monthly] growth . . . and with more It has already raised $400m at a valu-
to spend $1bn in China in 2015 to catch investment in product, hiring, and pay- ation of about $2.4bn in April.
targets growth markets
and escalates local rivalry
up with Didi Kuaidi, the market leader
backed by internet groups Alibaba and
ment solutions, we expect to grow at an
even faster rate.”
Uber declined to comment on current
One of Ola’s financial backers, who
asked not to be named, said: “It’s obvi-
ously an attempt to intimidate potential
Creativity holds key to
JAMES CRABTREE — MUMBAI At the time, Uber’s Chinese drivers
were making close to 1m daily trips, a far
performance in India but industry esti-
mates suggest it offers about 200,000
investors in Ola’s next round. But it
won’t work. Ola is going to have plenty
HBO closing sky-high
Uber is set to plough $1bn into a major
expansion in India, placing its invest-
ment in the country on a par with that in
higher level than most analysts
expected. India’s ride-sharing market is
less developed, but Uber hopes its finan-
daily rides.
Ola also declined to comment but
people familiar with the Bangalore-
of money to fight back.”
India’s ride-hailing app market is
growing rapidly, but its two leading
Netflix valuation gulf
China and signalling an escalation of its cial firepower will enable it to overtake based group say it operates more than ‘[This players have seen a series of political
rivalry with domestic ride-sharing Ola. Ola in the next year. twice as many daily rides in more than and regulatory setbacks complicate
attempt to

The US ride-hailing app company said Amit Jain, president of Uber India, 100 cities. their expansion plans. or a technology company, Netflix certainly
the spending drive would see its service described the target as “incredibly Much of Uber’s investment is intimidate Uber and Ola are braced for potential makes a lot of television. At a presentation this
hit 1m daily fares by March 2016, the ambitious”. expected to be spent on expanding the investors] new restrictions in New Delhi, following week to the Television Critics Association in Los
first time it has produced such a target He said it would be achieved by subsidies it offers to tempt passengers a court ruling this week which threat- Angeles, the streaming video business pledged to
in India. launching the service beyond the 18 cit- and encourage new drivers to sign up. won’t work. ened to uphold an earlier ban on all such produce 475 hours of original programming in
Yesterday’s announcement marks the ies in which it operates, the largest News of Uber’s spending spree comes Ola is going to apps. the next 12 months.
latest salvo in Uber’s battle to match number outside of the US. as Ola, which is backed by Japanese have plenty Uber previously suffered a temporary Its strategy of adding its own films and TV shows, such as
fast-growing local competitors in China “We are extremely bullish on technology group SoftBank and Tiger ban in the Indian capital last December, new series from the director Baz Luhrmann and comedian
and India, as it pours funds into its most the Indian market,” he said. “We are Global, the US investment group, is near of money to following an allegation of sexual assault Aziz Ansari, to the content it licenses from other providers
important growth markets. continuing to see robust 40 per cent to closing a financing round. fight back’ by a driver. has served Netflix very well. The company has 65m sub-
scribers worldwide and a gravity-defying share price,
which has risen close to 600 per cent over the past five
years. Its $45.4bn market capitalisation is greater than the
combined value of commercial broadcasters CBS and ITV.
Technology. Smartphone battle Netflix has said it will expand into every significant glo-
bal market — including China — by the end of 2016. Its

Samsung units diverge as rivals gain ground service clearly resonates with audiences who have
embraced its on-demand, digital ethos.
But is its sky-high valuation fully justified, particularly
when compared with HBO, the Time Warner-owned pre-
mium network behind hit shows such as Game of Thrones
and The Sopranos?
Mobile division flounders The two companies share some attributes. They both
while Apple’s inroads bring want high-quality programming, they both also license
films from Hollywood studios and they each operate in
rewards for chip business multiple markets. HBO is accessed primarily through pay-
television services — it has 46m subscribers in the US and
SIMON MUNDY — SEOUL 120m globally — whereas Netflix can be accessed digitally
(although it still operates a subscription DVD business).
Even as the mobile business of Samsung Netflix trades at 130 times the $347m it generated in
Electronics has battled to reverse falling operating income over the past 12 months. HBO, mean-
sales in a fiercely competitive market, while, generated $1.8bn of operating income over the same
colleagues in other divisions of the period: applying Netflix’s multiple would value HBO at an
South Korean conglomerate have wel- eye-popping $234bn. This is almost four times the market
comed the increased competition. value of Time Warner and would not include its other
Samsung’s earnings for the three assets, such as the Warner Brothers studio or Turner cable
months to June showed the seventh con- networks.
secutive declining quarter, and the dis- This disparity is even more dramatic when considering
appointing numbers were rooted in the analyst estimates for 2015 earnings. They expect Netflix to
company’s mobile business. generate $0.23 per share for the year, giving the company a
Operating profit at the IT and mobile price to earnings ratio of 465.
division, which is largely focused on Time Warner, by contrast, is
handsets, fell 38 per cent year on year to trading on a multiple of
HBO’s streaming
Won2.7tn ($2.4bn), with sales of the about 19 times forecast 2015 service could be
Galaxy S6 flagship phone falling below earnings.
company expectations. What explains the valua-
just as globally
In contrast, Samsung’s semiconductor tion gulf? There are several distributed as
business saw earnings surge 83 per cent factors. Netflix is a direct-to-
to Won3.4tn. This was due in part to the consumer business, selling
Netflix one day
competitive pressures that are hurting subscriptions in each market
the group’s mobile business, said Baek in which it operates. Two-thirds of its customers are in the
Jae-ho,anexecutive inthe division. US so there is significant potential in other markets. It is a
“The competition in smartphones is relatively cheap service and costs only $7.99 a month in its
becoming fierce,” he told analysts on a home market so there is also potential to increase prices.
Its top line revenues from streaming increased
30 per cent year over year; HBO revenues, by contrast,
What growth remains is have been relatively flat.
going to rivals — notably in At Netflix, short-term profits have been sacrificed as the
company invests to build a truly global streaming net-
China, the world’s biggest work. The prospect of vast future earnings, say analysts, is
smartphone market what appeals to growth investors.
HBO is already extremely profitable which, perversely,
may explain its lower multiple. It derives most of its earn-
ings from the cable and satellite operators that carry its
conference call. “And the result is that Samsung is still 7 per cent and 4 per cent respectively, in smaller number of products, said Keon Samsung’s memory chip division, the channels: its programming is also licensed internationally
even low-end smartphones are now the largest line with preliminary guidance. But the Han, an analyst at Credit Suisse. world’s biggest by sales with a big tech- by companies such as Sky, which pay it hefty fees.
adopting [high-resolution] displays, smartphone detailed earnings release confirmed the Global smartphone shipments are set nological lead over its peers, is profiting But, like Netflix, HBO is also in the streaming game. This
which is driving up” the need for more maker by sales, Galaxy S6, which it had hoped would to expand 11 per cent this year, accord- as producers seek to make more power- spring it launched HBO Now, a standalone service that
memory on the devices. although the give a boost to the ailing smartphone ing to research group IDC, down from 39 ful phones. Xiaomi this year launched a aggregates all of its content without the need for an expen-
Yesterday’s results showed a stark Galaxy S6 has business,didnotfulfilexpectations. per cent in 2013. phone with 4GB of memory, more than sive pay-TV subscription.
divergence between the fortunes of a undershot Last year Samsung’s earnings were hit But what growth remains is going to any Apple or Samsung handset. Richard Plepler, chief executive, has talked about pur-
handset division losing market share to expectations hard as it struggled to offload unsold Samsung’s rivals — notably in China, the “We think this trend will continue on suing the 10m US broadband users who do not subscribe to
Apple and Chinese smartphone makers Ahn Young-join/AP Photo
stock of the poorly received Galaxy S5. world’s biggest smartphone market, to next year. When we meet our custom- cable or satellite TV. Yet there may be an even bigger prize
such as Xiaomi, and a semiconductor The company promised more careful where IDC said Samsung’s market share ers, they say memory is one of the core on offer for HBO. Its streaming service could, one day, be
division that is booming in part because inventory management to avoid a repeat halved to less than 10 per cent in the things to a smartphone,” Mr Baek said. just as globally distributed as Netflix. Its licensing deals
of demand from those same rivals. — only to be punished this year for first quarter of this year. It lost out to An executive from Samsung’s display with international partners would have to expire before
Mr Baek’s statement underscored another supply chain error. It was una- homegrown rivals such as Huawei, unit said it planned to sell the curved this could happen, which would take time, depending on
Samsung’s revived status as a company ble to meet demand for the premium which last week said handset revenues screens that drove demand for the S6 the country and the terms of its agreements.
that makes most of its profit from com- “Edge” version of the S6, while sales of increased 87 per cent in the first half. Edgetoothersmartphone makers. It is unclear why this potential upside has not been
ponents, echoing a shift at Sony, the the basic model undershot expectations. Meanwhile Apple has enjoyed record Peter Yu, an analyst at BNP Paribas, priced into Time Warner shares. Yes, HBO has differences
electronics group, which has tripled its Samsung said it had addressed the sales of its iPhone 6, leaving a smaller said this was a sign of Samsung’s with Netflix but its core business — content — is the same.
second-quarter profit thanks to surging capacity constraints and expected sales addressable market for competitors in increased willingness to allow its com- From Six Feet Under and True Detective to John OIiver: Last
semiconductor sales despite losses in to be boosted in the second half by the the high-margin premium market. “If ponents business to focus on making its Week Tonight and Girls, there is arguably no company bet-
smartphones. launch of a larger version of the S6 Edge. Apple is beating its own estimates, that own profits, instead of playing a support ter at producing it than the Time Warner-owned group.
Samsung’s shares fell 3.8 per cent, But while the company remains the means someone else is losing and that’s role to the handset business. Netflix trades on a tech-style multiple; Time Warner
having risen 2.7 per cent the day before leading smartphone producer by sales, predominantly Samsung,” said Mr Han. “There’s a war out there” in the mar- does not. If Jeff Bewkes, Time Warner’s chief executive,
on expectations it would announce a analysts said Samsung would struggle to But Apple’s success is a boon for the ket, he said. “Some people will bleed to wants to unleash a similar valuation, the creativity of HBO
share buyback alongside the results. return to meaningful growth. The com- group’s semiconductor business, which death, but those who make the money holds the key.
That proved unfounded. pany is shifting to a strategy focused has won a lucrative contract to make are the ones who sell the weapons.
Sales and operating profit declined more on protecting its margins with a processor chips for the next iPhone. That’s the component makers.”

Aerospace Investment companies

Bombardier delays new jet as orders dive KKR to inject $150m into India’s JBF Industries
ROBERT WRIGHT — NEW YORK which were C$4.20 at the start of the delay to the Global 7000 will give Gen- HENNY SENDER — NEW YORK months after the Narendra Modi gov- paign has diminished the lure of China,
year, initially dropped 13 per cent but by eral Dynamics’ Gulfstream a longer ernment came to power with its prom- while lower commodity prices have
Canada’s Bombardier was forced yes- JBF Industries, a listed polyester maker
lunchtime had recovered to be down period unchallenged at the top end of ise to get the Indian economy moving posed challenges in many other emerg-
terday to postpone the planned entry based in Mumbai, is to receive a $150m
about 10 per cent to C$1.76. the business jet market. Gulfstream’s once again. But local private sector ing markets including Brazil, Chile,
into service of its new business jet amid capital infusion from KKR in a transac-
The delay is the latest bad news G650ER is the longest-range business investment has been virtually stagnant Indonesia and South Africa.
a dive in orders and a worsening of its tion expected to be announced today
announcements this year from Bombar- jet, capable of flying 7,500 nautical miles and much of the initial euphoria which Business people in India cite a wel-
debt position resulting from the devel- following board approval, people close
dier, which has poured corporate re- without refuelling. greeted the new government has faded. come new flexibility in negotiations.
opment of its C Series commercial jet. to the situation said.
sources into developing the C Series sin- Net income for the second quarter fell “The prime minister needs these Promoters are willing to give up more of
The company said that the develop- gle aisle jet, intended as a competitor to 19 per cent to $125m, on revenues down Like other industrial companies, JBF kinds of deals which bring in foreign their equity, while banks, though still
ment of the Global 7000 business jet — Boeing’s 737 and Airbus’s A320 family. 5.5 per cent to $4.62bn. Net debt rose to took on a lot of bank debt to meet a capital to complete projects and help get reluctant to write down the value of
intended to have a range of 7,300 nauti- Cost and timetable overruns for the C $5.9bn, against $5.73bn at the start of surge in demand that failed to material- the country growing again,” said one their debt, are willing to make conces-
cal miles, one of the longest ranges on Series have held back the company’s the year, although the company stressed ise and ran into funding issues. The person involved in the transaction. sions on covenants and other terms.
the market — presented “challenges”, profitable business jet operations. The that equity and debt issues this year money from KKR will be used to com- “India is more attractive today than it On the JBF deal, the controlling Arya
which had “impacted the programme’s meant that it had cash and cash equiva- plete a $600m petrochemical plant in was 18 months ago.” family will see their 54 per cent stake in
schedule”. The jet had been due to enter lents of $3.1bn on hand. Mangalore in the south-western Indian Part of the reason India looks attrac- the company drop as KKR takes 20 per
service in the second half of next year. The Global 7000 Alain Bellemare, who took over as state of Karnataka, while the remaining tive is because many other emerging cent of the equity, which could rise if the
will enter service in
“The aircraft will now enter into serv- 2018, leaving the chief executive in February, said the portion will help pay down JBF’s $1.6bn nations appear relatively less attractive. investment group takes advantage of a
ice in the second half of 2018,” the com- Gulfstream quarter had been “in line with plan” in net debt. A combination of slower growth, mar- conversion mechanism in the debt.
pany said as it issued second-quarter G650ER terms of revenues, earnings before The deal is a small indication that for- ket volatility and slow decision making KKR declined to comment, while JBF
results. The Toronto-listed B shares, unchallenged interest and tax (Ebit) and deliveries. eign capital is flowing into India 14 as a result of the anti-corruption cam- could not be reached for comment.
Friday 31 July 2015 ★★ FINANCIAL TIMES 15


Deutsche Bank chief blasts poor performance

Cryan says results Counting the costs Regulation push
are ‘nowhere near G30 calls for chiefs’ pay
to hinge on standards
good enough’ and
underscore problems An influential group of bankers has
lambasted standards of conduct
facing the lender across the industry, calling for
boards to link executive pay to
improvements in culture to ensure
JAMES SHOTTER — FRANKFURT that the “tone at the top” has “a
clear and consistent echo from the
Deutsche Bank’s new chief executive bottom”.
described its latest results as “nowhere Since the financial crisis the
near good enough” as he delivered a biggest global banks have paid out
blunt assessment of the array of chal- hundreds of billions of dollars in
lenges facing Germany’s biggest lender. fines, settlements and provisions,
In the three months to the end of June, while adding tens of thousands of
Deutsche reported a net profit of compliance staff to keep on top of
€818m, or €0.40 per share, up from new laws and regulations. But so
€238m in the same period last year. far there have been only patchy
Helped by the weakness of the euro, efforts by the banks to address “a
revenues rose strongly, climbing 17 per multitude of cultural failures”,
cent from €7.9bn to €9.2bn. according to the Group of Thirty, a
The figures were better than expected non-profit body chaired by Jean-
— analysts had forecast net profits of Claude Trichet, former president of
€722m from revenues of €8.6bn — and the European Central Bank.
shares in the bank closed up 5.3 per cent In a report published yesterday,
to €31.85 in Frankfurt. the G30 makes recommendations
However, John Cryan, the former UBS including the establishment of an
banker who succeeded Anshu Jain as co- explicit link between the pay of the
chief executive of Deutsche on July 1, chief executive and the cultural
said that the results, which included a standards of the bank. The report
€1.2bn litigation charge mainly linked did not set out how those
to “legacy US mortgage-related standards should be measured, or
matters”, underscored the problems how deeply such links should
facing the bank. spread through the ranks. But it
“Our challenges are . . . evident in the argued that a lack of clear
connections between pay and
‘We must reduce Deutsche Bank conduct had fostered bad
Cost/income ratio (%) Return on equity after tax (%) Investment bank pre-tax profits Share price (€) behaviour by encouraging
organisational complexity, executives to bend rules or take
H1 (€bn)
which inhibits effective 100 20 4 40
risks for short-term rewards.
“Financial consequences for
decision making’ 80 Group 15 deficiencies of action or oversight
Investment bank 3 35 should be material, and be
60 10 perceived so internally,” the G30
unacceptably high level of our costs, our 2 30 said.
continuing burden of heavy litigation 40 5 The report, which arose from
charges, a balance sheet that must be discussions late last year with the
more efficient, and the poor overall 1 25
20 0 Financial Stability Board and the
returns to our shareholders,” he said. New York Federal Reserve, marks
“Our cost/income ratio of 85 per cent 0 -5 0 20 one of the first attempts by the
and annual return on tangible equity of banking industry to review its basic
5.7 per cent are both well below where 2014 2015 2014 15 2011 12 13 14 15 Jan 2014 15 Jul systems of incentives.
we aim to be and should be,” he added in Sources: company; Thomson Reuters Datastream In a speech last month, FSB
a forthright note to staff. chairman Mark Carney said the
Mr Cryan reiterated that he was com- group would work “to improve the
mitted to the five-year strategy laid out Deutsche Bank’s We must reduce organisational However, Deutsche warned that the Deutsche’s best-performing division alignment between remuneration
in April by Mr Jain and co-chief execu- new co-chief complexity, which inhibits effective ratio was likely to fall again in the in the quarter was its asset and wealth and conduct risk across the globe”.
tive, Jürgen Fitschen, which involves executive decision making, blurs accountability second half of the year, as a result of new management arm, where pre-tax New York Fed president Bill Dudley
selling the Postbank retail banking busi- John Cryan says and embeds wasteful cost.” regulations. profits more than doubled to €422m. — who defines culture as “the
ness, cutting assets at the investment the lender must The two areas of the new strategy The bank also has a number of legal However, the bank’s other divisions More on implicit norms that guide behaviour
bank, and shrinking Deutsche’s cost be disciplined in where analysts are most keen for more wrangles to resolve, ranging from inves- also reported strong gains, with Banks in the absence of regulations or
base by €3.5bn. The 54-year-old Briton, how, where and detail are costs and capital — both long- tigations into sanctions-busting to Deutsche’s flagship investment banking challenged on compliance rules” — has warned
Super Thursday
who is due to give details of how he will with whom it standing weaknesses for Deutsche. probes into whether Deutsche breached arm notching up a 45 per cent increase of results that unless banks make more
implement the plan in the autumn, did does business “Revenue growth has been slower than anti-money-laundering laws for in pre-tax profits. Deutsche’s global serious efforts to improve
not spell out any precise initiatives yes- Ralph Orlowski/Bloomberg
cost growth in core divisions. That has to Russian clients. Some analysts have transactions unit managed a 28 per cent standards, they will face ever-firmer
terday. However, he insisted that for the be reversed,” said Kinner Lakhani, an speculated that it could need to raise increase and profits at its retail bank pressure to be broken up.
strategy to succeed, Deutsche would analyst at Citigroup. more capital. climbed 27 per cent. The report calls for “meaningful
have to become more efficient. On the face of it, Deutsche’s capital Mr Cryan acknowledged that the “Overall, these were a good set of and consistent” cuts in pay to
“We must be disciplined in how, position at the end of the second quarter bank could not control “external” numbers, both in terms of how the punish behavioural lapses — rather
where and with whom we do business. showed signs of improvement. The events. However, he said that he did not trading businesses did versus expecta- than the “ad hoc” approach of
We must critically review any countries, bank shed assets, helping its core tier think that raising capital was in the best tions, as well as the improvement in the banks such as JPMorgan, which
business lines, products and relation- one capital ratio, a key measure of finan- interests of Deutsche’s shareholders, balance sheet,” said Jon Peace, an docked the bonus of chief Jamie
ships that are unattractive,” he said. cial strength, climb from 11.1 per cent at and made clear that he would prefer to analyst at Nomura. “However, we’re still Dimon after a $6bn trading loss.
“We must shrink our balance sheet, the end of March to 11.4 per cent at the shed assets to improve the bank’s waiting for the details of the strategy. Ben McLannahan
focusing on our many low-return assets. end of June. capital position. Execution will be everything.”

Banks. Capital levels Travel & leisure

RBS gains breathing space, for the moment SoulCycle flexes its financial
muscle to ride the IPO market
before the government starts selling its tors. Ewen Stevenson, chief financial RBS has managed to bolster its capital
Despite positive quarterly stake. officer, warned the bank will not there- buffers by accelerating the sale of its
results the bank still faces Mr McEwan said although “it would fore distribute capital before the first stake in Citizens, the US retail bank, NICOLE BULLOCK AND ERIC PLATT cultivated an extensive digital commu-
be nice” if the settlement happened this quarter of 2017 at the earliest. The bank which is expects to finish by the end of nity whereby riders and enthusiasts
some big financial hurdles year, to help clear “some of the issues must prove it has sustainable profits, he 2015 — a year ahead of schedule. SoulCycle, a chain of indoor cycling who may have never taken a SoulCycle
that have been a drain on this organisa- said, having delivered seven successive RBS announced this week a further studios that has amassed a cult follow- class communicate with the company
tion”, the bank is not currently in talks years of net annual losses. “We need to selldown of its current 40 per cent ing from New York to California, is now and each other.
with US regulators and that it could be a get through this year’s stress-testing stake, which could lower its holding to hoping to win loyal fans on the stock Proceeds from the IPO will pay down
Royal Bank of Scotland dashed investor further six to 12 months before discus- round and next year’s stress-testing 20 per cent. market. debt and fund capital expenditure.
hopes of a dividend payment next year sions start. round before we can begin capital distri- In another move to boost capital, the The company has a long-term goal of
and warned of a “noisy” period ahead Settling with the US regulators, which butions,” he added. bank announced an issuance of addi- The group, which describes each class as operating 250 domestic studios in US
with looming mis-selling fines, damping analysts estimate could cost at least RBS has come under pressure to tional tier one notes denominated in US a “cardio party”, yesterday filed initial cities and suburban areas, and taking
prospects for government plans to begin £5bn, is also one of the main hurdles in strengthen its capital reserves after dollars. Mr Stevenson described the paperwork with the Securities and the brand to international markets.
selling its stake. the way of the bank resuming dividend almost failing the Bank of England’s launch as “another important mile- Exchange Commission for a public list- SoulCycle also sees an opportunity to
The bank, which is 80 per cent backed repayments. RBS had previously guided stress test at the end of last year. The stone” for the bank, with the aim of rais- ing. As is customary at this stage, it did expand its line of branded workout
by the UK government, released a better that it will return excess capital either in bank boosted its capital buffer from 11.5 ing at least £2bn of AT1 this year. not specify the number or price of the clothing and broaden its reach to an
than expected set of earnings yesterday, the form of a dividend or share buy- per cent at the end of March to 12.3 per Aside from improving capital, the shares to be sold. “at-home” audience. A move to target
reporting a net profit of £293m in the back, once it surpasses a core tier one cent in the second quarter as it contin- lender shed assets in its Capital Resolu- Started in 2006 in the rear lobby of a affluent customers with at-home ses-
second quarter — up 27 per cent from ratio of 13 per cent. ues to repair its capital strength. tion division — the internal “bad bank” former dance studio found on Craigslist, sions follows the success of Peloton, a
the same period last year. But the bank clarified yesterday that Analysts at Morgan Stanley lauded — by £3bn in the second quarter, mean- SoulCycle has grown quickly to count privately held company that executives
The quarterly net profit marked a there are a number of other “issues” to the move to boost capital as “encourag- ing nearly 80 per cent of the unit has 235,000 riders annually and sales of expect will report $50m in sales this
reversal of fortune after RBS reported a work through beforehand, which ing”, in spite of incurring £1.5bn of costs now been exited. The bank expects to roughly $112m last year, a 49 per cent year.
first-quarter loss of £446m, as the bank includes the settlement with US regula- to cover mis-selling and restructuring. have completed its rundown from RCR rise from 2013. It operates 38 cycling Risk factors cited in SoulCycle’s filing
pushes on with major restructuring by the end of the year. studios in seven US metropolitan areas, include its ability to maintain its reputa-
plans to retrench globally and focus on The bank reported underlying oper- but 97 per cent of its revenues last year tion, attract and retain riders, success-
the UK market. However, in spite of the ating profit, excluding the cost of came from the New York, Los Angeles fully expand into new markets and fend
positive results, chief executive Ross restructuring the bank and conduct and San Francisco regions. off competition. It is also dependent on a
McEwan warned of “tough issues com- charges, of £1.81bn, down slightly from The offering arrives as the American single supplier and producer for its
ing down the track”, highlighting the £1.95bn in the second quarter of last fitness industry is evolving, with an bikes.
need to settle with US regulators over year largely because of the rundown of increasing number of gyms adding yoga The company is backed by luxury
the alleged mis-selling of mortgage- the investment bank and subsequent and barre classes. SoulCycle has sought gym chain Equinox, owned by The
backed securities. decline in revenues. to offer a unique workout that includes Related Companies, and Leonard Green
The warning comes only a month RBS must now overcome other hur- not just physical exercise but a narrative & Partners, the buyout firm. Melanie
after George Osborne, the UK chancel- dles. As a condition of receiving state aid of emotional inspiration and empower- Whelan, who has previously worked for
lor, unveiled plans to start selling down during the financial crisis, it must carve ment. Equinox, the Virgin Group and Star-
the government’s stake in the country’s out Williams & Glyn as a “challenger” According to SoulCycle’s prospectus: wood Hotels, is chief executive.
biggest ever privatisation, albeit at a loss bank, a process at risk of being delayed. “Our riders move in unison as a pack to SoulCycle has been profitable for at
to the taxpayer. “We’re making very good progress but the beat, and follow the cues and chore- least three years, with net income up 42
Sir Philip Hampton, the outgoing it is a tough act to get it out,” said Mr ography of the instructor. The experi- per cent year over year in 2014 to
chairman of the bank, recently told the McEwan. “We’re aiming for an IPO at ence is tribal. It is primal. And it is $25.3m.
Financial Times that it might be wise to the end of next year — our view is we’ll fun . . . We believe SoulCycle is more Goldman Sachs, Bank of America
wait until after a US regulatory settle- get there.” than a business, it’s a movement.” Merrill Lynch and Citigroup are lead
ment is struck “in the coming months” Clouds looming: a US settlement could cost RBS £5bn — Chris Ratcliffe/Bloomberg See Lex Outside its studios, the company has managers on the IPO.
16 ★★ FINANCIAL TIMES Friday 31 July 2015


Energy Media

Areva reveals it now needs €7bn cash boost Hollywood

Nuclear group discloses reported a €4.8bn net loss last year, will
be reduced to a nuclear fuel company
Canberra, its nuclear measurements
subsidiary, and as much as €1.2bn from
Areva chief
from further losses. EDF also said it
would probably sell some of its stake in
shortfall as EDF pays €2bn
for stake in reactor unit
that mines, enriches and then disposes
of uranium. The heart of the company —
other sources of equity financing.
This suggested a government-backed
Philippe Knoche
says he is aiming
Areva NP to third parties, but retain a
shareholding of more than 51 per cent in
files for
designing, building and servicing
nuclear reactors — is being sold off.
Areva said, however, that it would
capital raising that might be closer to
The two companies also said they
to refocus the
company on ‘its
core business,
the unit.
This comes as EDF and Areva both
reported first-half results. Areva
Struggling French nuclear group Areva need €7bn in capital over the next two would set up a dedicated company to be the nuclear reported a €206m net loss for the six
yesterday disclosed it needed a bigger years, meaning that as much as €5bn 80 per cent owned by EDF and 20 per fuel cycle’ months to June 30, compared with a MATTHEW GARRAHAN
than expected capital injection worth will be required from sources other than cent by Areva NP, aimed at improving €488m profit in the same period last
€7bn as it also unveiled a far-reaching utility group EDF. A significant percent- the design and management of brand year. Revenue rose 6 per cent to €1.9bn. Relativity Media, the Los Angeles-
agreement with EDF on asset disposals age of the additional funds is likely to new reactors projects. Philippe Knoche, Areva chief execu- based entertainment group, has filed
and other projects. come from a government-backed capi- One of the problems that has weighed tive, said: “We are targeting a clear for bankruptcy protection after miss-
The two companies — both state-con- €5 bn tal raising. on Areva in recent years has been cost objective for 2017: to transform Areva ing payments to lenders and running
trolled — agreed in principle that EDF The French government may have to overruns at key projects, particularly into a competitive company refocused up as much as $1bn in liabilities.
Amount French
will pay €2bn for a 75 per cent stake in government contribute between €4bn and €5bn, far the Olkiluoto 3 reactor in Finland, on its core business, the nuclear fuel
Areva’s reactor unit, called Areva NP, in faces having to more than the €2bn to €3bn that minis- which is 10 years behind schedule and cycle, where it has unique human and The filing is the biggest Hollywood
a radical reshaping of the French contribute to Areva ters had hoped for just a few months prompted the company to take €3.9bn industrial capital in the world.” bankruptcy since the collapse of Metro-
nuclear industry that has come after ago, according to people familiar with in impairment charges. EDF, which is grappling with a fall in Goldwyn-Mayer four years ago.
months of tense negotiations. €3 bn
the situation, although the exact level of Areva and EDF said they would be European power prices, reported MGM emerged from bankruptcy with
Areva’s shares closed 2.2 per cent up the capital raising was not announced “immunised” against any risks net income of €2.5bn for the six its debt holders in control of the com-
Maximum that
at €8.26. EDF’s shares were up 3.4 per French government yesterday. related to the Olkiluoto 3 project, months to June 30 — flat compared pany: its largest shareholder, Anchorage
cent at €21.85. had been hoping to Areva said it could secure €400m suggesting that the French govern- with the same time last year. Reve- Capital, is Relativity Media’s lead debt
Following the deal, Areva, which contribute from selling some other assets including ment has agreed to shield them nues rose 6 per cent to €38.4bn. holder.
The company will be auctioned off,
with Blackstone and FTI Consulting
running a process that will be overseen
by the bankruptcy court.
Oil & Gas. Crude prices Relativity has received a commitment
of $45m debtor-in-possession financ-

Shell cutting 6,500 jobs amid ‘prolonged downturn’ ing, funds which will keep it operating
during the sale.
Relativity, which released films such
as Act of Valor and Immortals, was started
by Ryan Kavanaugh, a colourful
character who once earned the ire of
Anglo-Dutch group to slash neighbours by landing his helicopter
capital spending budget by on a nearby building’s emergency
20% after oil-price crash Mr Kavanaugh raised hundreds
of millions of dollars to invest in
movie studio production slates. He ini-
tially earned millions of dollars in fees
Royal Dutch Shell is cutting 6,500 jobs
and will slash its capital spending
budget by 20 per cent this year, as it pre-
Relativity scored a hit
pares for a “prolonged downturn” in with ‘Limitless’, but
crude prices by scrapping and delaying
billions of dollars in energy projects.
released a string of movies
The Anglo-Dutch group said yester- that underperformed
day it would reduce investment by $7bn
from last year’s levels to about $30bn in
2015, a bigger drop than forecast three from the performance of those slates,
months ago and a sharper reduction in and later expanded into production and
capital spending than many of its rivals. distribution with backing from Elliott
Ben van Beurden, Shell chief execu- Associates, the New York hedge fund
tive, sought to dispel investor concerns run by Paul Singer.
that its proposed $55bn takeover of BG But relations with Elliott quickly
Group, announced in April, would soured. Ron Burkle, the retail billionaire
struggle to work at prices of $70 a barrel stepped in, backing the company.
or less, and criticisms that the group had Relativity scored a hit with Limitless,
starring Bradley Cooper, but failed to
repeat the success, releasing a string of
‘We are not waiting for movies that underperformed.
the $90 cavalry to arrive Expansion into new lines of business,
such as athlete representation, educa-
when we deal with tion and branding proved to be a further
today’s challenges’ drain on the company’s resources. In
recent months it has lurched from crisis
Ben van Beurden, Shell CEO Shell has responded to investor concerns by unveiling its strategy to reposition the company for a downturn — Andrey Rudakov/Bloomberg to crisis, seeking emergency financing
deals in a bid to stay afloat.
been slow to respond to the oil price Mr Kavanaugh is expected to stay
crash. for a downturn that it warned “could given the final go-ahead this year, said Shell-BG, with a leading position in liq- manage through this downturn, always with the company during the
“Judge us on what we do,” he told last for several years”. Mr van Beurden. Among those uefied natural gas and deepwater Bra- making sure we have the capacity to pay bankruptcy process.
reporters. “I want to be very clear we are The 6,500 job losses include reduc- described as “cancelled” was the expiry zilian oil, focused on fewer but bigger attractive dividends for shareholders.” Relativity, which is cutting 75 jobs, is
acting with determination. “We are not tions already announced in its North Sea of a longstanding concession in Abu projects. In the three months to June 30, Shell being represented in its bankruptcy
waiting for the $90 cavalry to arrive business, the US, Canada, Norway and Dhabi, where Shell and BP refused to It is selling a one-third stake in Showa reported $3.8bn of earnings on a current filing by Sheppard Mullin, the law firm.
when we deal with today’s challenges.” Nigeria, and include a cut in the number pay multibillion-dollar signing-on fees Shell, the Japanese refiner, to Idemitsu cost of supplies basis excluding identi- The filing, in the Southern District of
He conceded that the group had not of contractor roles. Shell employed for a new deal. for $1.4bn, and will “take a good look” at fied items — a measure of profit pre- New York, reveals that the company has
communicated this with sufficient 94,000 people at the end of December. Shell expected asset sales of $50bn its North Sea portfolio. ferred by analysts. This compared with up to $1bn of liabilities.
“urgency” at its full-year results in Just two big energy projects would be from 2014 to 2018, as the enlarged Shell’s action comes amid an indus- $6.1bn in the same quarter last year, but “The actions we are announcing
January. try-wide scramble to cut costs, shed the performance exceeded analysts’ today will protect our valuable fran-
Shell’s shares, which have underper- labour and scrap or defer more expen- expectations. chise and allow us to emerge as a
formed other big oil and gas groups, Shell performance sive projects, from Canada’s oil sands to The company highlighted improved stronger, more focused company,” Mr
closed up 4.2 per cent at £18.39 in Lon- Net income ($bn) Return on invested capital (%) deepwater fields in the Gulf of Mexico. refining margins and robust down- Kavanaugh said.
don. The fall in oil prices, caused mainly by stream results, where profit more than Mr Kavanaugh has been on the
Oswald Clint, analyst at Bernstein, 8 8 Opec’s decision not to cut output in the doubled from $1.3bn to $3bn, offsetting receiving end of a lawsuit filed recently
said that Shell’s latest figures on spend- face of a US supply glut, has stoked fears the impact of lower oil prices. However, by RKA Film Financing, a film promo-
ing addressed investor concerns that 6 6 that companies might fail to maintain profits from exploration and produc- tion group, which accused the company
“Shell’s heads are in the sand”. dividend payouts. Some $200bn in tion fell 78 per cent to $1bn. Output of misusing funds.
“With progress on the [BG] deal on spending on large projects has been declined 11 per cent from one year ago. In its legal filing, it called Mr
track, this is a new emerging business 4 4 pushed back in an effort to cover those Analysts were upbeat, pointing to the Kavanaugh a “conman” who “through
which can pay dividends whatever the payouts, according to Wood Mackenzie, strong contribution from refining — a dishonesty and deceit, operated a
oil price environment,” he added. 2 2 the energy consultancy. common theme for the majors — tough scheme to defraud investors and
The BG deal is awaiting some regula- “We have to be resilient in a world cost control and capital spending cuts. convert and misappropriate their
tory approvals. where oil prices remain low for some Analysts at Tudor Pickering Holt said funds”.
For the first time since crude began its 0 0 time, while keeping an eye on recovery,” Shell had “moved more aggressively to Relativity fired back with a $200m
plunge — to $53 from $115 last summer Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 said Mr van Beurden. align its business for a lower-for-longer countersuit, claiming that RKA was
— Shell set out in full the measures it has 2013 14 15 2013 14 15 “We’re taking a prudent approach, oil price environment”. seeking to exploit its efforts to refinance
been taking to reposition the company Source: Bloomberg pulling on powerful financial levers to See Lex the company.

Contracts & Tenders


Parts maker Delphi pays £1.1bn for UK peer in future tech push
ANDY SHARMAN versus Delphi’s $22.3bn, makes prod- fornia, which makes 3D lidar sensors — The HellermannTyton deal — the
ucts for protecting, routing and fasten- used to power advanced driver assist- only transaction for which financial
UK car parts maker Delphi Automotive ing cables. Based in Crawley, southern ance systems, autonomous cars and details were released — is based on the
is to buy British peer Hellermann- England, it supplies Volvo, BMW and high-definition maps. logic that the era of the connected car
Tyton in a £1.1bn deal, part of a series Delphi as well as aerospace companies. “Delphi is certainly working on trans- calls for more and more electrical archi-
of moves yesterday announced by the Delphi is one of the world’s largest forming the whole company into the tecture in vehicles.
tech-focused supplier. parts suppliers and specialises in com- ‘my dream car’ supplier,” said Chris Kevin Clark, Delphi chief executive,
ponents and software that seek to make McNally, analyst at Evercore ISI. said: “With consumers now demanding
The takeover is the latest in a string of cars safer, better connected and more Not satisfied with three big announce- more connectivity in their vehicles,
deals among car industry suppliers as environmentally efficient. ments, Delphi also flagged a minority electrical architecture is the enabler of
they seek scale to serve global vehicle Delphi, once part of General Motors, investment in Tula Technology, which that added vehicle content.”
manufacturers by snapping up the best wants to capitalise on a shift towards uses software to boost the fuel efficiency Shares in HellermannTyton — taken
future car technology. greater connectivity in vehicles, as well of engines, and said it would divest its public by former private equity owner
Delphi, which is headquartered in as the rise of the autonomous car. automotive antennas business to North- Doughty Hanson in 2013 at 195p — rose
Gillingham, south-east England, but That was underlined yesterday as east Industries, a Chinese supplier. 42 per cent to 472.1p.
listed in the US and run from Michigan, Delphi also announced the acquisition The deal implies an enterprise value
has agreed to buy HellermannTyton for of Ottomatika, a Pittsburgh-based soft- for HellermannTyton at about 14.7
480p a share — a 44.5 per cent premium ware company that helped Delphi com- Car industry times last year’s earnings before inter-
suppliers are
to the closing price the day before — in plete a self-driving coast-to-coast road seeking scale by est, tax, depreciation and amortisation.
an all-cash transaction. trip in the US in April. snapping up the Delphi’s shares, which have risen
HellermannTyton, which had a mar- Delphi has also entered into a strate- best future car 16 per cent over the past year, fell 0.7 per
ket cap of £715m at Wednesday’s close gic collaboration with Quanergy of Cali- technology cent in morning trading in New York.
Friday 31 July 2015 ★ † FINANCIAL TIMES 17


Media Technology

Fox and BuzzFeed close in on NBC deals Baidu bows

to investors
Traditional media group traditional media groups, NBC wants to
reach younger audiences that are
The value of digital properties able to
connect with large audiences online has
former Wall Street Journal reporters,
Kara Swisher and Walt Mossberg. News
with $1bn
looks to invest in digital to
reach younger audience
increasingly shunning television for dig-
ital platforms. For BuzzFeed and Vox,
the new funding and closer partnership
soared in recent years. Last year, Buzz-
Feed, known for its lists, Gifs and exper-
tise in aggregation, took a $50m invest-
of the talks were first reported by
Recode, the technology news website
owned by Vox, which already counts
MATTHEW GARRAHAN — NEW YORK with NBC could lead to television ment from Andreessen Horowitz, the Comcast as a shareholder.
projects and new sources of revenue, the Silicon Valley firm, which valued it at BuzzFeed and Vox may have an eye on CHARLES CLOVER — BEIJING
BuzzFeed and Vox Media, two leading person added. $850m. It also briefly held talks with Vice Media in negotiating their new
Baidu has moved to restore investor
digital news groups, are close to striking Vox and BuzzFeed have both invested Disney for a sale which would have val- deals with NBCUniversal. The youth-
confidence with a $1bn share buyback,
hefty investment deals with Comcast’s in branded content, a growth area for ued it at $1bn. $1.5 focused media group’s valuation has
bn after $12bn was wiped off the Chinese
NBCUniversal that value BuzzFeed at digital news operations. The branded Vox, which owns sites such as SB soared since it got into television pro-
Value of search engine’s stock market capitali-
$1.5bn and Vox at $850m. content market is forecast to increase by Nation, Curbed and Eater, secured duction and distribution. Last year it
BuzzFeed if it sation in the wake of disappointing
NBCUniversal, owner of the US The US 20 per cent a year in the US, from $10bn $46.5m of financing last year from Gen- strikes a deal raised $500m from investors last year
quarterly earnings.
broadcast network, Universal movie in 2014 to $25bn in 2019, according to eral Atlantic, the New York private with NBC including A&E Networks and Technol-
studio and portfolio of cable channels, branded new research from Boston Consulting equity firm, in a deal that valued it at ogy Crossover Ventures, the Silicon Val- The buyback will be funded with exist-
will invest $250m in BuzzFeed and an content Group, the professional services firm. $380m. $850 m
ley private equity firm, that valued it at ing cash and will take place over
undisclosed amount in Vox. market is set The negotiations to invest in the two The company recently bolstered its $2.5bn. 12 months, Baidu said yesterday, after
Vox’s value if it
The investments serve each company companies are at an advanced stage but portfolio of web properties with the NBCUniversal declined to comment its shares fell 14 per cent over the week.
in different ways, according to a person to rise by 20% no deals have yet been signed, according acquisition of Recode, the influential
secures the
investment on the talks with BuzzFeed and Vox Baidu narrowly missed analysts’ esti-
familiar with the situation. Like other a year to people familiar with the matter. technology which was started by two from NBC Media. mates for second-quarter profits and
guidance for third-quarter revenues
The company said that the move
“demonstrates Baidu’s confidence in the
O2O [online-to-offline] opportunity
Technology. Digital drive and in our ability to capture it. It’s our
commitment with nine zeros”.

Singapore start-ups aim to be top kids on the block Reporting results on Monday, Baidu
forecast revenue growth for the current
quarter at 34-37 per cent.
“Last year, they had a full year of 50 or
near 50 per cent year-on-year revenue
growth, and now they’ve had two quar-
City-state hopes to become ters sub-40 per cent and another quar-
the Silicon Valley of Asia, but ter of guidance suggesting mid-30s. So
basically the message is that for search,
ready funding outweighs ideas the party is over,” said Mark Natkin of
Marbridge Consulting in Beijing.
Analysts worry that the slowdown
raises doubts about Baidu’s ability to
Keen tech investor though he is, Hugh manage the transition from an internet
Mason is grateful he does not have a ruled by PC users to one dominated by
weak bladder: “Every time you go for a smartphones, where users pick from a
pee, someone is pitching you an idea,” screen full of apps instead of finding
he says. content through search engines.
Welcome to Block 71 in downtown Robin Li, Baidu’s chairman,
Singapore, home to more than 100 start- announced in June a Rmb20bn ($3.2bn)
ups, accelerators and angel investors investment over three years in Baidu
and, together with Blocks 73 and 79, Nuomi, its Groupon-like marketplace,
among the densest technology ecosys- to lift its performance in mobile.
tems in the world. Nuomi is envisioned as a focal point
Dubbed LaunchPad, this is where the for services such as movie ticket sales
city-state is pursuing its goal of becom- and taxi hailing where physical and vir-
ing the world’s top digital nation — and tual commerce are combined in what is
where geeks are disrupting everything known as “online-to-offline” business
from estate agents to healthcare. funnelling users to online payments sys-
Analysts have expressed concern that
‘To make money [in Baidu is losing focus, citing as an exam-
Singapore], there’s no pain. ple Baidu wallet, the online payment
system founded in April 2014 and the
And without pain it’s hard weakest of China’s major online pay-
to have good innovation’ ment services.
In data released for the third quarter
Singapore offers a strong legal system and so little red tape that it is possible to set up a business online in only 15 minutes — Edgar Su/Reuters of 2014 by Analysys, a Beijing-based
consultancy, Baidu Wallet, its mobile
The city state is well placed to fulfil its payments service, was found to have
aim of becoming an Asian Silicon Valley. more ideas than investment; Asia has wanton capital allocation, when anyone snap up the next big thing, notes Mr 0.06 per cent of the market. This com-
While China and India attract more dol- More on more investment than ideas.” who put their hand out received a Ziegler. pared to 79 per cent for Ant Financial’s
Hong Kong and Singapore are
lars, Singapore offers a strong legal sys- seeking to emulate the start-up Singapore’s zealous government has cheque, are no longer valid — a strict Alexey Pisarev, a banker and founder Alipay, the country’s most popular
tem and minimal red tape — a business culture of Silicon Valley. Ben tried to improve things in this area too. selection procedure ensures that only of a wearable device that juices up exer- mobile payments service which is
can be set up online in 15 minutes — Bland and Louise Lucas examine Mr Gnirck has a base at government- the best are awarded the coveted fund- cise routines, laments the lack of fund owned by rival Alibaba.
making it a logical base from which to whether they are succeeding. subsidised Bash (Build Amazing Start- ing and mentoring available at Bash. managers who understand start-ups. The companies published more
access bigger regional markets that lack ups Here), a vast 22,000 sq ft space that The idea is that private-sector capital, “To have M&A you need multibillion- recent figures which suggest the gap has
these advantages. looks like a cross between an Ikea show- which is plentiful at start-up level, will dollar companies around. It will take closed slightly. Baidu said it had 35m
Best of all, it is awash with money. room and a Montessori nursery. fill the gap. “We know it would not sur- time before we reach that level of matu- active users for Baidu Wallet at the end
Much of the privately raised venture Here a host of start-ups enjoy not just vive if we needed the government to rity.” of June, while Alipay said it had 400m.
capital is matched by government fund- Venture capital investment cheap space but a new way of thinking. sign a cheque every time,” says Eddie One answer already in evidence, says “People are concerned that Baidu is
ing, helping Singapore trump most of its $m Joseph Ziegler, a transplanted Texan Chau, a veteran entrepreneur and Mr Ziegler, is big multinationals using not going to be able to move to online-
peers outside China and India in terms who runs a start-up accelerator for Tel- investor based in Block 71. research and development budgets to to-offline because their payment sys-
of overall investment. 0 100 200 300 stra, the Australian telecoms group, is The government originally weighed invest in start-ups. Mario Aquino, ven- tem is a lot weaker than Tencent and
Singapore’s $324m last year was unconvinced and says the easy money is in alongside venture capital firms in the ture partner at McKinsey Solutions, the Alibaba,” said Shaun Rein of China Mar-
nearly 10 times Hong Kong’s $37m, 2014 part of the problem. He says the start-up wake of the 2008 financial crisis, a time professional services firm, agrees. ket Research Group in Shanghai.Invest-
according to Asian Venture Capital Jour- 2015 YTD scene in Singapore is “boring boring when the country saw an influx of tal- “Multinationals are building their ments in things like movie tickets and
nal. That is still far behind China, which Hong boring. To make money here, there’s no ent, as bankers lost their jobs and entre- own accelerators and corporate venture other “online-to-offline” businesses are
saw $5.5bn in investments in the first Kong pain. And without pain it’s hard to have preneurs, such as Mr Mason, arrived capital arms,” he says. “There are “something they haven’t proved they
half of this year, and India with $3.3bn. good innovation.” from the US and Europe. increasing connections between start- are good at,” he added.
Singapore itself already boasts 55,000 Japan Government officials bridle at such But if checking into Singapore’s eco- ups and large corporations.” “They’re getting hammered because
start-ups that are employing staff. complaints. They say the administra- system is straightforward enough, exit- For Steve Leonard, tasked with lead- they’re making the investment they
The glaring problem is the dearth of Singapore tion has a road map to end grants and ing is less so. ing the government drive from the Info- need to potentially thrive in the next
creative talent. Markus Gnirck, who other funding, but the initial leg-up has Unlike Hong Kong, Singapore’s initial comm Development Authority of Singa- five to 10 years. The concern is, are they
runs accelerator Startupbootcamp Fin- to come from the state — as it did in Sili- public offerings market is sluggish and pore, “there has been a great awakening making the right investments, and are
Tech, which he co-founded in the UK con Valley. there are few big Alibaba, Google or of the entrepreneurial spirit . . . Singa- they going to be good at those new
Source: Asian Venture Capital Journal
last year, sums it up: “Europe has way They also say earlier criticisms of Facebook-style companies ready to pore is on a new growth strategy”. businesses?”

Technology Technology

Google defies ‘right to be forgotten’ demands Loon balloon WiFi up and away in Sri Lanka
MURAD AHMED — LONDON the right to be forgotten may now be the Google said it believed the CNIL’s JAMES CRABTREE — MUMBAI vide internet access at speeds close quarters and this year mothballed its
law in Europe, it is not the law globally,” request was “disproportionate” because to third-generation mobile phones, high-profile Google Glass “smart”
Google will disobey a formal notice Project Loon, Google’s stratospheric
said Peter Fleischer, global privacy 97 per cent of French internet users although it faces far-reaching technical glasses, placing the remainder of its
from France’s privacy watchdog, which internet access project, has signed its
counsel at Google. access, rather than any other obstacles, including navigating its bal- experimental tech projects under
has demanded the company extends first national agreement with the gov-
He said there are “innumerable” version of the search engine. loons in wind currents towards the edge increased scrutiny.
Europe’s “right to be forgotten” online ernment of Sri Lanka, making the trop-
examples around the world where con- CNIL said it would deal with Google’s of the earth’s atmosphere. Sri Lanka’s deputy minister of policy
around the world, in a move that risks ical island nation a frontrunner in the
tent declared illegal in one country response within the statutorily required Project Loon has also pitched Google planning and economic development,
further legal action. race to offer countrywide WiFi access
would be deemed legal in others. “Thai- period of two months. It added that the into a high-altitude contest with Face- Harsha de Silva, celebrated his coun-
from huge helium-filled balloons.
In a controversial ruling last year, the land criminalises some speech that is technology group’s arguments were in book — which is developing its own try’s agreement with Google, noting on
European Court of Justice found citizens critical of its king, Turkey criminalises part “political”, whereas it said its own Launched in 2013, Project Loon is an plans for networks of flying drones, sat- social media that it could now take only
have the right to ask internet search some speech that is critical of Atatürk reasoning was “strictly legal”. ambitious plan to encircle the Earth ellites and lasers — to see which US tech “a few months” to provide internet
engines to remove embarrassing or sen- and Russia outlaws some speech that is The French watchdog is leading dis- with a chain of balloons floating high in giant can first provide internet coverage access to the island’s 21m population —
sitive results that include their name. deemed to be gay propaganda.” cussions among a group of data protec- the atmosphere that link together to across large swaths of the planet. only a quarter of which is online,
Google has accepted the judgment, Mr Fleischer added: “If the CNIL’s tion regulators across all 28 EU member form a network giving internet access to However, Google has also been according to UN data.
but has a policy of stripping sensitive proposed approach were to be states over the implementation of the remote and rural areas. attempting to curb costs over recent However, the details of the memoran-
links only from European versions of its embraced as the standard for internet right to be forgotten. Its move ramps up Yesterday, Google spokesman Taj dum of understanding provide no time-
search engine. That means links regulation, we would find ourselves in a pressure on Google, potentially creating Meadows confirmed that it had signed a table, and one person with knowledge of
expunged from Google’s French, Ger- race to the bottom. In the end, the inter- a regulatory front against the technol- memorandum of understanding with the discussions said a launch was
man or British sites do not need be net would only be as free as the world’s ogy group at a time when it is already Sri Lanka’s government, which he said “highly unlikely” to happen in 2015.
stripped from least free place.” facing an antitrust probe related to its was an “important early step” for “This is more of an agreement to have
Last month, the Commission nation- dominance of the search market and the project, “but it’s still very, very further discussions about how we set it
ale de l’informatique et des libertés attacks over its tax avoidance regime. early days”. up,” the person said, speaking on condi-
issued Google with a formal notice,
‘While the right to be France would be the first country to Project Loon is one of the most high- tion of anonymity. “Any launch is going
arguing that links must also be stripped forgotten may now be open a sanctions process over the right profile among several so-called “moon to be quite a long way off — a year or two
internationally to comply with the law. to be forgotten, but CNIL’s powers are shot” projects developed by the com- at least.”
Google said yesterday it will “respect-
the law in Europe, it is limited as it is can only impose fines of pany’s secretive Google X laboratory, Project Loon took off with an initial
fully disagree” with the watchdog’s not the law globally’ up to €150,000. The larger threat is that ranging from solar-powered drones test in New Zealand in 2013, with the
demands, adding that it has asked for the French regulator and others may to self-driving cars. Google plans to roll out Project Loon goal of providing internet access to a
the formal notice to be removed. “While seek to take the company to court again. The balloon internet plan aims to pro- internet access across Sri Lanka range of southern hemisphere nations.
18 ★★ FINANCIAL TIMES Friday 31 July 2015



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 $

-0.03% -0.49% -0.11% -0.907% -0.256% -0.709% -0.84% -0.25%

No change
0.33% 0.57% 0.62% 1.08% 0.416%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,108.63 14,553.33 6,668.87 20,522.83 2,097.89
14,382.78 6,608.59 11,180.50 11,257.15 20,235.73
Day 0.00% Month 2.48% Year 7.04% Day 0.57% Month -1.17% Year -7.36% Day 0.57% Month 2.37% Year -1.44% Day 0.40% Month 2.85% Year 17.34% Day 1.08% Month 2.05% Year 31.40% Day -0.91% Month -2.01% Year -2.08%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,128.78 26,250.03
1,571.22 11,168.60
44,928.52 1,533.89 10,911.50 3,317.33
4,986.87 44,373.31 24,497.98
Day 0.33% Month 3.43% Year 15.44% Day -0.22% Month -1.51% Year 0.14% Day 0.62% Month 4.00% Year 14.93% Day -1.01% Month 2.90% Year 2.45% Day -0.49% Month -5.66% Year -0.58% Day -1.05% Month -0.93% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
52,757.54 5,046.42 23,396.09 4,053.70
17,619.51 17,745.98 22,943.64 28,020.87
4,883.19 3,705.77
49,897.40 27,705.35

Day -0.03% Month 0.85% Year 4.93% Day -0.69% Month -6.00% Year -12.27% Day 0.58% Month 3.63% Year 15.60% Day 0.63% Month 4.16% Year 12.01% Day -2.20% Month -8.57% Year 69.74% Day 0.51% Month 0.22% Year 6.59%

Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29
Argentina Merval 11224.56 11313.70 Cyprus CSE M&P Gen 76.56 76.94 Italy FTSE Italia All-Share 25100.77 24959.51 Philippines Manila Comp 7510.39 7482.83 Taiwan Weighted Pr 8651.49 8563.48 Cross-Border DJ Global Titans ($) 241.80 242.05
Australia All Ordinaries 5653.10 5609.60 Czech RepublicPX 1030.69 1026.55 FTSE Italia Mid Cap 34824.11 34794.18 Poland Wig 52011.81 52288.10 Thailand Bangkok SET 1417.49 1408.07 Euro Stoxx 50 (Eur) 3583.79 3575.53
S&P/ASX 200 5669.50 5624.20 Denmark OMXC Copenahgen 20 1006.36 1013.24 FTSE MIB 23396.09 23248.90 Portugal PSI 20 5739.69 5698.99 Turkey BIST 100 78079.76 78024.02 Euronext 100 ID 983.50 980.39
S&P/ASX 200 Res 3207.80 3147.30 Egypt EGX 30 8105.69 7949.89 Japan 2nd Section 5070.67 5080.82 PSI General 2637.49 2616.61 UAE Abu Dhabi General Index 4821.99 4854.63 FTSE 4Good Global ($) 5734.12 5738.61
Austria ATX 2481.28 2481.98 Estonia OMX Tallinn 873.53 876.98 Nikkei 225 20522.83 20302.91 Romania BET Index 7606.54 7556.44 UK FT 30 2933.90 2935.70 FTSE All World 280.47 280.79
Belgium BEL 20 3726.85 3719.38 Finland OMX Helsinki General 8634.06 8519.45 S&P Topix 150 1378.27 1365.04 Russia Micex Index 1636.72 1622.32 FTSE 100 6668.87 6631.00 FTSE E300 1571.22 1561.48
BEL Mid 6132.95 6139.63 France CAC 40 5046.42 5017.44 Topix 1647.21 1633.94 RTX 867.74 865.84 FTSE 4Good UK 6026.83 5994.08 FTSE Eurotop 100 3147.34 3124.93
Brazil Bovespa 49897.40 50245.15 SBF 120 3958.90 3941.10 Jordan Amman SE 2125.72 2130.17 Saudi-Arabia TADAWUL All Share Index 9098.27 9107.39 FTSE All Share 3635.28 3618.45 FTSE Global 100 ($) 1357.04 1358.27
Canada S&P/TSX 60 848.03 842.15 Germany M-DAX 20564.65 20545.58 Kenya NSE 20 4605.25 4532.28 Singapore FTSE Straits Times 3249.52 3284.00 FTSE techMARK 100 3884.70 3873.52 FTSE Gold Min ($) 863.74 845.92
S&P/TSX Comp 14382.76 14301.80 TecDAX 1761.52 1769.48 Kuwait KSX Market Index 6253.71 6245.03 Slovakia SAX 250.86 251.79 USA DJ Composite 6238.57 6233.79 FTSE Latibex Top (Eur) 2968.90 2969.10
S&P/TSX Met & Min 519.75 547.22 XETRA Dax 11257.15 11211.85 Latvia OMX Riga 442.70 441.28 Slovenia SBI TOP 744.13 741.26 DJ Industrial 17745.98 17751.39 FTSE Multinationals ($) 1557.85 1545.68
Chile IGPA Gen 18484.52 18368.63 Greece Athens Gen 797.52 797.52 Lithuania OMX Vilnius 499.57 499.13 South Africa FTSE/JSE All Share 51774.41 51598.54 DJ Transport 8419.78 8420.87 FTSE World ($) 496.53 497.05
China FTSE A200 9873.93 10163.06 FTSE/ASE 20 241.22 237.38 Luxembourg LuxX 1608.79 1611.82 FTSE/JSE Res 20 36107.04 35800.26 DJ Utilities 578.88 575.20 FTSEurofirst 100 (Eur) 4491.69 4458.41
FTSE B35 10940.14 11222.24 Hong Kong Hang Seng 24497.98 24619.45 Malaysia FTSE Bursa KLCI 1699.92 1698.99 FTSE/JSE Top 40 46302.48 46108.87 Nasdaq 100 4598.59 4581.60 FTSEurofirst 80 (Eur) 4784.43 4770.02
Shanghai A 3882.03 3969.28 HS China Enterprise 11137.33 11273.69 Mexico IPC 44373.31 44471.29 South Korea Kospi 2019.03 2037.62 Nasdaq Cmp 5128.78 5111.73 MSCI ACWI Fr ($) 425.64 422.25
Shanghai B 357.54 366.28 HSCC Red Chip 4402.41 4385.72 Morocco MASI 9723.10 9723.19 Kospi 200 243.61 245.97 NYSE Comp 10881.75 10883.91 MSCI All World ($) 1760.69 1747.06
Shanghai Comp 3705.77 3789.08 Hungary Bux 22537.66 22321.54 Netherlands AEX 495.17 489.29 Spain IBEX 35 11168.60 11282.90 S&P 500 2108.63 2108.57 MSCI Europe (Eur) 1511.45 1506.51
Shenzhen A 2226.24 2300.33 India BSE Sensex 27705.35 27563.43 AEX All Share 751.08 743.82 Sri Lanka CSE All Share 7332.05 7313.97 Wilshire 5000 22205.86 22192.39 MSCI Pacific ($) 2447.84 2441.28
Shenzhen B 1231.34 1251.40 S&P CNX 500 7019.60 6974.15 New Zealand NZX 50 5891.85 5870.77 Sweden OMX Stockholm 30 1603.50 1597.86 Venezuela IBC 15473.33 15537.75 S&P Euro (Eur) 1577.29 1572.88
Colombia COLCAP 1325.32 1297.62 Indonesia Jakarta Comp 4712.49 4721.12 Nigeria SE All Share 30510.95 30614.81 OMX Stockholm AS 526.52 524.74 Vietnam VNI 626.57 624.70 S&P Europe 350 (Eur) 1612.51 1601.93
Croatia CROBEX 1800.47 1798.37 Ireland ISEQ Overall 6449.57 6427.75 Norway Oslo All Share 687.49 683.28 Switzerland SMI Index 9397.69 9387.97 S&P Global 1200 ($) 1943.22 1941.60
Israel Tel Aviv 100 14.83 14.77 Pakistan KSE 100 35887.66 35699.75 Stoxx 50 (Eur) 3439.25 3415.34
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see A fuller version of this table is available on the research data archive.


AMERICA LONDON EURO MARKETS TOKYO Jul 30 %Chg %Chg Jul 30 %Chg %Chg Jul 30 %Chg %Chg Jul 30 %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
Facebook Class A 81.7 95.21 -1.78 Glaxosmithkline 218.3 1389.00 14.50 Amadeus It 668.7 39.86 0.13 Tokyo Electric Power ,orporated 1414.5 838.00 40.00 Rsa Insurance 517.00 16.4 18.9 Hellermanntyton 470.50 41.1 49.4 Chime Communications 345.25 25.8 21.6 Automobiles & Parts 7385.95 4.9 -8.1
Apple 39.1 122.37 -0.62 Bg 209.4 1079.50 39.50 Santander 564.1 6.28 -0.22 Mizuho Fin,. 545.3 268.00 5.60 Hikma Pharmaceuticals 2405.00 15.6 21.5 Greggs 1341.00 12.7 83.2 Quintain Estates And Development 131.25 22.1 37.8 Oil Equipment & Services 17379.56 4.0 5.9 20.0 536.76 7.76 Royal Dutch Shell 168.9 1861.00 84.00 Royal Dutch Shella 456.9 26.35 1.24 Mitsubishi Ufj Fin,. 532.5 893.20 14.40 Gkn 315.90 4.8 -8.2 Domino's Pizza 885.00 10.6 26.0 Liontrust Asset Management 374.75 12.5 37.8 Tobacco 44781.71 3.6 10.3
Microsoft 18.5 46.88 0.59 Royal Dutch Shell 168.2 1839.00 74.50 Bbva 446.6 9.27 -0.04 Hitachi, 522.8 784.60 48.00 British American Tobacco 3740.00 4.5 6.9 Drax 288.90 10.5 -37.3 Fdm (holdings) 459.00 12.0 31.3 Electronic & Electrical Equip. 4298.27 3.6 6.7
Procter & Gamble 17.1 77.39 -3.23 British American Tobacco 161.5 3740.00 59.50 Deutsche Bank Ag Na O.n. 438.5 30.26 0.00 Canon . 502.0 3927.00 -38.50 Vodafone 241.05 3.9 8.3 Laird 400.10 10.3 28.6 Games Workshop 555.00 7.2 6.7 Mobile Telecommunications 5443.79 3.4 8.3
Netflix 15.8 111.56 4.48 Bp 141.9 401.00 2.40 Siemens Ag Na 391.0 92.48 0.00 Japan Tobacco . 490.2 4765.50 107.50 Royal Dutch Shell 1861.00 3.5 -16.7 Virgin Money Holdings (uk) 419.70 7.6 45.7 Photo-me Int 150.25 5.3 6.7 Nonlife Insurance 2312.17 2.9 19.5
Gilead Sciences 14.0 117.90 2.19 Lloyds Banking 140.7 86.02 0.42 Eni 367.3 15.92 0.08 Fast Retailing Co., 456.9 61930.00 1700.00 Intercontinental Hotels 2743.00 3.4 5.7 Tate & Lyle 544.00 7.3 -9.8 Stobart Ld 111.50 4.9 2.1 Oil & Gas Producers 6606.88 2.3 -7.2
Google Class A 13.1 664.56 3.13 Astrazeneca 139.5 4319.50 128.50 Renault 339.6 83.13 -7.22 Toyota Motor 454.2 8163.00 51.00 Royal Dutch Shell 1839.00 3.1 -14.6 Digital Entertainment 113.70 6.3 -3.5 Ferrexpo 58.50 4.9 10.4 Household Goods 15883.29 1.7 24.2
Whole Foods Market 12.7 36.08 -4.74 Royal Bank Of Scotland 130.8 342.40 -10.80 Ab Inbev 334.6 109.15 -4.30 Nomura Holdings, . 441.5 891.40 31.00 Next 7885.00 3.0 15.6 Card Factory 339.90 5.1 20.1 Ite 184.75 4.7 15.5 Pharmaceuticals & Biotech. 13107.55 1.4 3.2
Baidu 12.2 174.47 4.46 Hsbc Holdings 127.6 577.10 0.60 Total 323.3 44.96 0.64 Fanuc 434.8 20745.00 45.00 Intertek 2438.00 2.9 4.5 Informa 584.50 5.0 24.2 Energy Assets 560.00 4.7 24.4 Health Care Equip.& Services 6804.34 1.2 0.9
Reckitt Benckiser 6104.00 2.8 17.2 Amec Foster Wheeler 834.00 4.6 -2.2 Flybe 93.75 4.2 -15.5 Electricity 8809.81 1.2 -9.9
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Bg 1079.50 2.5 24.8 hcape 802.00 4.4 10.6 Soco Int 159.25 4.1 -47.5 Industrial Engineering 8347.52 0.8 -5.5
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Western Digital 86.44 7.69 9.77 Hellermanntyton 470.50 138.40 41.67 Safran 67.51 6.16 10.04 Hino Motors, 1591.00 102.00 6.85 Babcock Int 985.50 -7.6 -6.9 Lonmin 53.80 -28.7 -69.7 Xchanging 97.50 -18.4 -37.3 Industrial Metals 978.96 -9.6 -35.3
Wynn Resorts Ltd 104.12 8.09 8.42 Laird 400.10 50.30 14.38 Nokia 6.43 0.45 7.53 Hitachi, 784.60 48.00 6.52 Antofagasta 580.50 -7.6 -22.9 Premier Farnell 134.20 -19.6 -23.8 Hochschild Mining 78.25 -8.7 -11.1 Industrial Transportation 2918.26 -3.8 3.2
Vertex Pharmaceuticals 135.46 9.84 7.83 hcape 802.00 49.50 6.58 Legrand 55.80 3.73 7.16 Sumitomo (sumitomo Shoji Kaisha,) 1418.00 86.00 6.46 Easyjet 1644.00 -6.1 -1.6 Intermediate Capital 572.00 -16.0 6.6 Enquest 37.00 -8.6 4.2 Beverages 14060.47 -3.3 -0.5
Nxp Semiconductors N.v. 97.87 6.07 6.61 Bodycote 682.50 32.50 5.00 Alcatel-lucent 3.45 0.18 5.64 Showa Shell Sekiyu K.k. 1170.00 68.00 6.17 Compass 1031.00 -6.0 -6.4 Aggreko 1215.00 -15.0 -19.2 Anglo-eastern Plantations 595.00 -8.5 7.2 Travel & Leisure 8537.46 -2.8 5.9
Air Products & Chemicals 142.34 8.20 6.11 Royal Dutch Shell 1861.00 84.00 4.73 Royal Dutch Shella 26.35 1.24 4.94 Nippon Light Metal Holdings , 211.00 12.00 6.03 Int Consolidated Airlines S.a. 542.00 -5.5 11.5 Vedanta Resources 385.00 -13.9 -33.0 Infinis Energy 139.25 -7.9 -36.7 Software & Computer Services 1522.50 -2.5 22.0
Sage 515.00 -5.2 10.6 Ladbrokes 111.50 -13.1 0.9 Biotech Growth Trust (the) 824.00 -7.9 21.5 Food & Drug Retailers 3145.98 -1.6 11.1
Downs Downs Downs Downs
Diageo 1811.00 -5.0 -2.0 Fisher (james) & Sons 1093.00 -10.6 -8.8 Gem Diamonds 126.00 -7.4 -27.9 Equity Investment Instruments 7439.18 -1.5 2.9
Qorvo 60.49 -9.99 -14.17 Talktalk Telecom 309.30 -17.10 -5.24 Renault 83.13 -7.22 -7.99 Panasonic 1447.50 -89.00 -5.79
Royal Mail 492.80 -4.2 14.6 Evraz 99.40 -10.0 -35.7 Lms Capital 73.00 -7.0 -6.4 Support Services 6947.47 -1.5 8.0
Whole Foods Market 36.08 -4.74 -11.61 Babcock Int 985.50 -53.50 -5.15 Jc Decaux Sa. 35.81 -1.58 -4.23 Nichirei 890.00 -54.00 -5.72
Glencore 211.00 -4.1 -29.4 Fidelity China Special Situations 133.50 -9.2 -0.2 Int Biotechnology Trust 581.00 -6.3 31.2 Life Insurance 7981.06 -1.5 5.8
Ensco 16.63 -1.37 -7.61 Premier Farnell 134.20 -5.80 -4.14 Natixis 6.53 -0.29 -4.20 Mitsubishi Electric 1374.00 -82.50 -5.66
Dixons Carphone 448.90 -4.1 -2.9 Barr (a.g.) 576.00 -9.0 -2.4 Jpmorgan Chinese Investment Trust 166.00 -6.2 -6.7 Mining 11289.51 -1.5 -20.8
L 3 Communications Hldgs. 114.75 -9.29 -7.49 Countrywide 531.00 -22.00 -3.98 Altice 114.50 -4.80 -4.02 Astellas Pharma . 1852.00 -78.50 -4.07
Merlin Entertainments 414.00 -4.1 3.9 Ocado 387.60 -8.4 -3.1 Pacific Horizon Investment Trust 181.63 -6.1 -0.9 General Financial 9417.28 -1.5 10.4
Range Resources 39.85 -2.79 -6.54 Vedanta Resources 385.00 -13.50 -3.39 Repsol 15.37 -0.64 -4.00 Daiichi Sankyo , 2519.50 -102.00 -3.89
Kingfisher 359.30 -4.0 5.5 Enterprise Inns 113.60 -6.8 -0.9 Petropavlovsk 5.99 -6.1 -59.4 Construction & Materials 4965.68 -1.0 20.2
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.

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
Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 9.1825 -0.0002 10.0315 -0.0989 14.3354 -0.0368 Indonesia Indonesian Rupiah 13467.5000 11.5000 14712.6329 -132.0913 21024.9229 -35.6451 Poland Polish Zloty 3.7998 0.0588 4.1511 0.0240 5.9321 0.0768 ..Three Month 0.6405 0.0016 0.6996 -0.0051 - -
Australia Australian Dollar 1.3746 0.0063 1.5017 -0.0078 2.1459 0.0044 Israel Israeli Shekel 3.7882 0.0127 4.1385 -0.0267 5.9141 0.0049 Romania Romanian Leu 4.0332 0.0270 4.4061 -0.0136 6.2965 0.0262 ..One Year 0.6403 0.0017 0.6991 -0.0051 - -
Bahrain Bahrainin Dinar 0.3771 - 0.4119 -0.0041 0.5886 -0.0015 Japan Japanese Yen 124.3350 0.5150 135.8303 -0.7685 194.1066 0.3108 Russia Russian Ruble 59.6015 0.3560 65.1119 -0.2480 93.0474 0.3198 United States United States Dollar - - 1.0925 -0.0108 1.5612 -0.0040
Bolivia Bolivian Boliviano 6.9100 0.0100 7.5489 -0.0633 10.7876 -0.0119 ..One Month 124.3350 0.5149 135.8303 -0.7685 194.1065 0.3107 Saudi Arabia Saudi Riyal 3.7502 0.0001 4.0969 -0.0402 5.8547 -0.0148 ..One Month - - 1.0924 -0.4727 1.5611 -0.0040
Brazil Brazilian Real 3.3734 0.0342 3.6853 0.0015 5.2664 0.0401 ..Three Month 124.3348 0.5147 135.8303 -0.7685 194.1063 0.3101 Singapore Singapore Dollar 1.3758 0.0097 1.5029 -0.0041 2.1478 0.0096 ..Three Month - - 1.0923 -0.4727 1.5611 -0.0040
Canada Canadian Dollar 1.3031 0.0133 1.4236 0.0007 2.0343 0.0156 ..One Year 124.3339 0.5128 135.8303 -0.7686 194.1065 0.3087 South Africa South African Rand 12.7363 0.2360 13.9138 0.1234 19.8833 0.3186 ..One Year - - 1.0915 -0.4727 1.5609 -0.0040
Chile Chilean Peso 672.5600 6.0900 734.7412 -0.5118 1049.9727 6.8531 Kenya Kenyan Shilling 102.3000 0.6000 111.7581 -0.4378 159.7065 0.5316 South Korea South Korean Won 1168.2500 9.7500 1276.2600 -1.8029 1823.8234 10.6072 Venezuela Venezuelan Bolivar Fuerte 6.3053 0.0103 6.8882 -0.0565 9.8435 -0.0091
China Chinese Yuan 6.2096 0.0005 6.7837 -0.0662 9.6942 -0.0239 Kuwait Kuwaiti Dinar 0.3032 0.0004 0.3312 -0.0029 0.4733 -0.0007 Sweden Swedish Krona 8.6375 0.0452 9.4360 -0.0430 13.4844 0.0363 Vietnam Vietnamese Dong 21818.0000 -1.5000 23835.1750 -236.2111 34061.4537 -89.2191
Colombia Colombian Peso 2861.2250 -0.0250 3125.7580 -30.7877 4466.8262 -11.4341 Malaysia Malaysian Ringgit 3.8160 0.0050 4.1688 -0.0355 5.9574 -0.0074 Switzerland Swiss Franc 0.9697 0.0067 1.0593 -0.0030 1.5138 0.0066 European Union Euro 0.9154 0.0089 - - 1.4290 0.0103
Costa Rica Costa Rican Colon 533.4000 0.0500 582.7152 -5.6791 832.7219 -2.0462 Mexico Mexican Peson 16.4718 0.2471 17.9946 0.0955 25.7150 0.3211 Taiwan New Taiwan Dollar 31.4750 0.0330 34.3850 -0.3020 49.1375 -0.0737 ..One Month 0.9153 0.0089 - - 1.4290 0.0103
Czech Republic Czech Koruna 24.7549 0.1886 27.0436 -0.0580 38.6463 0.1967 New Zealand New Zealand Dollar 1.5195 0.0225 1.6600 0.0085 2.3722 0.0292 Thailand Thai Baht 34.9500 - 38.1813 -0.3757 54.5625 -0.1392 ..Three Month 0.9152 0.0089 - - 1.4289 0.0103
Denmark Danish Krone 6.8295 0.0663 7.4609 -0.0003 10.6619 0.0766 Nigeria Nigerian Naira 199.0000 -0.2500 217.3984 -2.4151 310.6705 -1.1839 Tunisia Tunisian Dinar 1.9771 0.0141 2.1598 -0.0056 3.0865 0.0143 ..One Year 0.9144 0.0089 - - 1.4283 0.0103
Egypt Egyptian Pound 7.8290 0.0252 8.5528 -0.0564 12.2223 0.0083 Norway Norwegian Krone 8.1681 0.0363 8.9233 -0.0478 12.7518 0.0243 Turkey Turkish Lira 2.7858 0.0263 3.0433 -0.0009 4.3490 0.0301
Hong Kong Hong Kong Dollar 7.7522 0.0006 8.4689 -0.0827 12.1023 -0.0299 Pakistan Pakistani Rupee 101.7750 -0.0200 111.1845 -1.1162 158.8869 -0.4367 United Arab Emirates UAE Dirham 3.6731 - 4.0126 -0.0395 5.7342 -0.0146
Hungary Hungarian Forint 283.0657 3.2886 309.2363 0.5849 441.9103 4.0197 Peru Peruvian Nuevo Sol 3.1920 0.0070 3.4871 -0.0265 4.9831 -0.0017 United Kingdom Pound Sterling 0.6406 0.0016 0.6998 -0.0051 - -
India Indian Rupee 64.0150 0.1588 69.9335 -0.5131 99.9376 -0.0065 Philippines Philippine Peso 45.6275 0.1025 49.8460 -0.3774 71.2318 -0.0213 ..One Month 0.6405 0.0016 0.6997 -0.0051 - -
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
Produced in conjunction with the Institute and Faculty of Actuaries Jul 30 Jul 29 Jul 28 Jul 27 Jul 24 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 2933.90 2935.70 2904.80 2865.80 2907.70 0.00 3110.40 2669.30 Forestry & Paper 42.19 Personal Goods 8.19 NON FINANCIALS Index 0.54 FTSE 100 Price Change FTSE 100 Price Change
Jul 30 chge% Index Jul 29 Jul 28 ago yield% Cover ratio adj Return FT 30 Div Yield 1.71 1.72 1.73 1.75 1.74 0.00 3.93 2.74 Software & Comp Serv 24.94 Travel & Leisure 7.79 Health Care 0.49 3I Group PLC 545.00 -1.00 Land Securities Group PLC 1283 -10.00
FTSE 100 (100) 6668.87 0.57 7422.86 6631.00 6555.28 6730.11 3.64 1.53 17.91 145.19 5141.38 P/E Ratio net 26.07 26.00 25.76 25.49 25.70 0.00 19.44 14.26 Household Goods & Ho 21.05 FTSE SmallCap Index 7.79 Food Producers 0.46 Aberdeen Asset Management PLC 363.30 -4.70 Legal & General Group PLC 260.10 1.20
FTSE 250 (250) 17521.00 0.05 19501.94 17512.81 17387.89 15495.64 2.42 2.28 18.13 262.66 12064.96 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Construct & Material 20.42 Industrial Transport 7.63 Pharmace & Biotech 0.46 Admiral Group PLC 1468 -23.00 Lloyds Banking Group PLC 86.02 0.42
FTSE 250 ex Inv Co (212) 19077.93 0.09 21234.90 19060.77 18910.74 16768.18 2.44 2.39 17.18 285.03 13392.77 FT 30 hourly changes Real Est Invest & Se 20.16 Mobile Telecomms 7.50 Leisure Goods 0.38 Anglo American PLC 805.70 -7.90 London Stock Exchange Group PLC 2592 19.00
FTSE 350 (350) 3693.79 0.48 4111.42 3676.10 3636.83 3649.78 3.43 1.62 17.95 76.21 5745.24 8 9 10 11 12 13 14 15 16 High Low Nonlife Insurance 16.93 Consumer Goods 7.00 FTSE 100 Index 0.21 Antofagasta PLC 580.50 -4.50 Marks And Spencer Group PLC 533.00 2.00
FTSE 350 ex Investment Trusts (312) 3672.82 0.50 4088.07 3654.65 3614.91 3634.17 3.45 1.63 17.80 76.19 2941.00 2935.7 2933.5 2936 2941.6 2944 2940.2 2942.2 2925.5 2928.2 2956.1 2920.9 Fixed Line Telecomms 15.14 Tobacco 5.90 Chemicals -2.52 Arm Holdings PLC 1011 21.00 Meggitt PLC 455.80 0.30
FTSE 350 Higher Yield (108) 3433.85 0.81 3822.08 3406.36 3360.20 3688.63 4.99 1.35 14.85 103.44 5445.37 FT30 constituents and recent additions/deletions can be found at Media 12.69 Life Insurance 5.56 Gas Water & Multi -6.06 Ashtead Group PLC 964.00 -1.50 Merlin Entertainments PLC 414.00 -3.60
FTSE 350 Lower Yield (242) 3596.49 0.14 4003.11 3591.59 3564.12 3252.84 1.76 2.46 23.09 41.40 3772.44 Food & Drug Retailer 12.08 Financials 5.41 Industrial Eng -6.23 Associated British Foods PLC 3159 8.00 Mondi PLC 1529 -14.00
FTSE SmallCap (294) 4699.53 0.04 5230.87 4697.75 4656.45 4410.00 2.65 1.78 21.29 74.99 6367.44 Financial Services 11.33 Electronic & Elec Eq 4.92 Utilities -7.24
FTSE SmallCap ex Inv Co (157) 4243.90 0.12 4723.72 4238.82 4192.85 3943.12 2.50 2.68 14.94 68.66 6043.67 FX: EFFECTIVE INDICES Technology 11.32 Industrials 4.65 Aerospace & Defense -8.76
Astrazeneca PLC 4319.5 128.50 Morrison (Wm) Supermarkets PLC 181.10 0.60
Aviva PLC 518.50 1.00 National Grid PLC 842.70 3.50
FTSE All-Share (644) 3635.28 0.47 4046.29 3618.45 3580.04 3585.62 3.40 1.63 18.05 74.42 5720.51 Real Est Invest & Tr 11.09 Equity Invest Instr 4.26 Oil & Gas -10.22
Jul 29 Jul 28 Mnth Ago Jul 30 Jul 29 Mnth Ago Babcock International Group PLC 985.50 -53.50 Next PLC 7885 75.00
FTSE All-Share ex Inv Co (469) 3600.81 0.49 4007.93 3583.27 3544.31 3558.56 3.44 1.64 17.73 74.38 2931.34 Telecommunications 10.33 Tech Hardware & Eq 2.38 Oil & Gas Producers -10.64 Bae Systems PLC 473.10 3.50 Old Mutual PLC 212.80 1.50
FTSE All-Share ex Multinationals (580) 1248.18 -0.08 1151.47 1249.20 1238.35 1099.18 2.58 2.07 18.72 20.64 2104.20 Australia 92.60 92.56 96.30 Sweden 77.23 77.34 78.93 Consumer Services 9.98 Oil Equipment & Serv 1.83 Electricity -11.40 Barclays PLC 287.05 2.45 Pearson PLC 1193 -3.00
FTSE Fledgling (110) 7978.99 0.00 8881.11 7978.89 7984.71 6862.17 2.28 3.70 11.87 98.74 14233.83 Canada 91.15 90.54 94.81 Switzerland 162.48 162.04 165.98 FTSE 250 Index 8.79 FTSE All{HY-}Share Index 1.79 Automobiles & Parts -13.31 Barratt Developments PLC 625.50 3.00 Persimmon PLC 1986 12.00
FTSE Fledgling ex Inv Co (58) 10923.99 0.03 12159.07 10920.44 10920.71 8410.00 2.20 7.09 6.40 114.30 18932.56 Denmark 105.61 105.72 105.26 UK 93.92 93.51 93.46 General Retailers 8.43 Banks 1.47 Basic Materials -18.93 Bg Group PLC 1079.5 39.50 Prudential PLC 1520 18.50
FTSE All-Small (404) 3261.01 0.04 3629.70 3259.83 3232.83 3047.36 2.63 1.86 20.43 51.47 5673.62 Japan 123.26 123.48 122.29 USA 104.03 104.18 102.48 Support Services 8.23 Beverages 0.82 Mining -22.65 Bhp Billiton PLC 1170 2.00 Randgold Resources LD 3813 -
FTSE All-Small ex Inv Co Index (215) 3168.75 0.12 3527.02 3165.08 3132.27 2920.12 2.49 2.85 14.11 50.43 5717.45 New Zealand 113.30 113.20 114.42 Euro 85.63 85.84 85.63 Health Care Eq & Srv 0.73 Industrial Metals & -28.62 BP PLC 401.00 2.40 Reckitt Benckiser Group PLC 6104 11.00
FTSE AIM All-Share Index (828) 750.17 0.14 834.98 749.16 749.16 768.56 1.42 1.37 51.50 5.39 802.74 Norway 89.25 88.62 91.20
British American Tobacco PLC 3740 59.50 RELX PLC 1097 -4.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British Land Company PLC 829.50 -6.00 Rio Tinto PLC 2456.5 2.50
Oil & Gas (18) 7022.49 2.97 7816.46 6819.96 6722.39 9060.81 5.38 1.09 17.08 188.83 5724.48 Index rebased 1/2/95. for further information about ERIs see Bt Group PLC 467.95 -5.55 Rolls-Royce Holdings PLC 749.50 19.00
Oil & Gas Producers (11) 6646.50 3.05 7397.96 6449.78 6360.53 8572.25 5.42 1.07 17.17 178.25 5600.04 Bunzl PLC 1820 16.00 Royal Bank Of Scotland Group PLC 342.40 -10.80
Oil Equipment Services & Distribution (7)18062.68 1.01 20104.86 17882.85 17422.47 23670.57 4.20 1.58 15.04 515.61 13070.90 FTSE GLOBAL EQUITY INDEX SERIES Burberry Group PLC 1564 4.00 Royal Dutch Shell PLC 1861 84.00
Basic Materials (31) 3921.57 -0.27 4364.95 3932.10 3875.40 5731.74 4.95 2.60 7.78 116.02 3759.86 Capita PLC 1279 8.00 Royal Dutch Shell PLC 1839 74.50
Chemicals (8) 11964.06 0.09 13316.73 11953.45 11797.03 10417.29 2.26 2.41 18.37 188.19 10240.46 Jul 30 No of US $ Day Mth YTD Total
YTD Gr Div Jul 30 No of US $ Day Mth YTD Total YTD Gr Div Carnival PLC 3376 -57.00 Royal Mail PLC 492.80 0.40
Forestry & Paper (1) 17971.15 -0.91 20002.99 18135.70 17806.60 12258.93 2.04 3.38 14.55 241.11 18544.30 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Centrica PLC 266.60 -8.60 Rsa Insurance Group PLC 517.00 -1.00
Industrial Metals & Mining (2) 1072.18 -1.77 1193.40 1091.48 1044.65 1226.31 1.04 -21.67 -4.45 5.46 930.58 FTSE Global All Cap 7613 480.44 0.8 0.3 3.82.2 651.20
2.4 Oil & Gas 165 359.46 1.6 1.6 -9.7 540.00 -8.0 3.9 Coca-Cola Hbc AG 1307 2.00 Sabmiller PLC 3390.5 7.50
Mining (20) 10809.71 -0.28 12031.87 10839.57 10685.18 17225.71 5.53 2.62 6.91 352.71 5406.18 FTSE Global All Cap 6977 493.32 0.8 0.1 3.31.9 656.59
2.3 Oil & Gas Producers 116 327.15 1.7 1.7 -9.7 499.77 -8.0 4.0 Compass Group PLC 1031 3.00 Sage Group PLC 515.00 0.50
FTSE Global Large Cap 1361 425.36 0.8 0.8 3.72.0 589.38
2.5 Oil Equipment & Services 40 375.27 1.5 1.5 -9.5 515.47 -7.8 3.6 Crh PLC 1879 -9.00 Sainsbury (J) PLC 260.80 -0.80
Industrials (117) 4515.87 0.23 5026.43 4505.41 4472.31 4307.51 2.44 1.30 31.43 69.38 4440.92
Construction & Materials (13) 5154.31 -0.51 5737.06 5180.94 5094.69 4081.21 2.50 -0.40 -100.19 79.41 5225.08 FTSE Global Mid Cap 1666 634.73 0.8 -0.6 4.02.8 822.84
1.9 Basic Materials 273 403.70 1.1 1.1 -7.3 585.27 -5.6 3.1 Diageo PLC 1811 -28.50 Schroders PLC 3110 18.00
Aerospace & Defense (9) 4590.98 1.46 5110.04 4524.90 4494.50 5050.50 2.44 1.13 36.14 69.13 4699.41 FTSE Global Small Cap 4586 671.27 0.9 -1.4 4.02.9 844.73
1.9 Chemicals 124 634.86 0.8 0.8 1.8 926.08 3.5 2.4 Direct Line Insurance Group PLC 364.60 -3.10 Severn Trent PLC 2196 -2.00
General Industrials (6) 3612.31 -0.02 4020.72 3613.19 3606.74 3304.10 3.13 1.79 17.85 48.72 3856.46 FTSE All-World 3027 280.79 0.8 0.5 3.72.2 401.44
2.4 Forestry & Paper 17 217.86 -0.6 -0.6 4.6 345.83 6.6 2.7 Dixons Carphone PLC 448.90 -6.60 Shire PLC 5590 -110.00
Electronic & Electrical Equipment (11) 5541.87 3.91 6168.44 5333.40 5277.30 4837.70 2.09 2.01 23.78 74.00 4862.32 FTSE World 2532 497.05 0.8 0.9 3.82.3 953.96
2.4 Industrial Metals & Mining 71 323.62 1.6 1.6 -21.5 471.10 -20.1 3.0 Easyjet PLC 1644 -39.00 Sky PLC 1119 -13.00
Industrial Engineering (14) 8808.23 0.71 9804.10 8746.26 8714.65 10541.27 2.75 1.77 20.54 160.88 10210.82 FTSE Global All Cap ex UNITED KINGDOM In 7283 491.97 0.7 0.4 3.72.2 657.88
2.3 Mining 61 447.23 1.8 1.8 -21.5 641.73 -19.7 5.2 Experian PLC 1176 -4.00 Smith & Nephew PLC 1167 32.00
Industrial Transportation (8) 4351.21 -0.24 4843.16 4361.74 4333.17 4075.22 3.75 1.20 22.19 116.47 3614.19 FTSE Global All Cap ex USA 5641 455.37 0.9 -1.5 3.81.8 654.60
2.8 Industrials 533 312.69 0.8 0.8 -0.6 430.74 0.7 2.1 Fresnillo PLC 645.00 -1.00 Smiths Group PLC 1135 12.00
Support Services (56) 6820.31 -0.41 7591.42 6848.68 6802.27 6180.43 2.23 1.53 29.27 100.20 6778.65 FTSE Global All Cap ex JAPAN 6358 490.68 0.9 0.4 3.01.4 670.90
2.4 Construction & Materials 110 446.56 0.9 0.9 3.5 645.98 5.2 2.1 G4S PLC 273.00 0.90 Sports Direct International PLC 779.50 -2.50
FTSE Developed 2091 451.22 0.8 1.2 4.52.9 616.00
2.4 Aerospace & Defense 29 506.14 1.8 1.8 1.8 691.12 3.0 2.1 Gkn PLC 315.90 -5.70 Sse PLC 1510 4.00
Consumer Goods (40) 17576.97 0.26 19564.24 17531.49 17264.94 15486.20 2.96 1.85 18.30 283.90 12213.79
FTSE Developed All Cap 5661 473.71 0.8 1.0 4.53.0 639.89
2.3 General Industrials 57 215.27 0.7 0.7 -1.0 317.91 0.5 2.6 Glaxosmithkline PLC 1389 14.50 St. James's Place PLC 971.50 -1.50
Automobiles & Parts (1) 7423.80 -1.77 8263.14 7557.75 7440.25 8046.56 2.66 1.61 23.35 131.60 6761.79
FTSE Developed Large Cap 885 418.20 0.8 1.5 4.42.8 578.40
2.5 Electronic & Electrical Equipment 69 329.50 -0.1 -0.1 1.3 418.62 2.3 1.7 Glencore PLC 211.00 -2.00 Standard Chartered PLC 983.10 0.90
Beverages (6) 14098.09 -0.80 15692.03 14211.12 14049.92 13827.21 2.49 1.89 21.27 105.50 9415.20
FTSE Developed Europe Large Cap 204 366.47 1.0 1.0 6.33.6 572.66
3.3 Industrial Engineering 103 592.13 -0.4 -0.4 -4.2 802.51 -2.8 2.2 Hammerson PLC 655.00 -5.50 Standard Life PLC 451.90 5.90
Food Producers (10) 8282.51 -0.03 9218.94 8284.82 8194.99 7538.99 1.95 1.57 32.58 91.21 6875.54
FTSE Developed Europe Mid Cap 310 538.27 0.7 0.3 9.77.6 767.13
2.4 Industrial Transportation 94 552.96 1.3 1.3 -7.4 759.39 -6.3 2.2 Hargreaves Lansdown PLC 1182 8.00 Taylor Wimpey PLC 190.40 5.00
Household Goods & Home Construction (13)13264.09 0.53 14763.75 13194.53 13133.38 9811.17 2.15 2.46 18.94 132.98 8918.25
FTSE Dev Europe Small Cap 723 758.05 1.0 1.7 12.010.1 1051.58
2.2 Support Services 71 284.30 1.4 1.4 4.3 376.83 5.5 1.8 Hikma Pharmaceuticals PLC 2405 -2.00 Tesco PLC 214.65 1.65
Leisure Goods (2) 5352.21 -0.90 5957.34 5400.95 5231.90 5445.79 3.95 1.35 18.74 109.73 4428.14
FTSE North America Large Cap 318 454.05 0.8 2.5 3.32.1 591.78
2.2 Consumer Goods 406 423.32 0.8 0.8 4.5 596.24 6.1 2.3 HSBC Holdings PLC 577.10 0.60 Travis Perkins PLC 2194 -1.00
Personal Goods (6) 23217.54 0.63 25842.54 23072.16 22984.12 19613.47 2.84 2.97 11.86 342.75 14780.18
FTSE North America Mid Cap 400 678.86 1.0 -0.3 0.90.1 831.44
1.6 Automobiles & Parts 98 390.06 0.4 0.4 0.1 528.10 1.6 2.3 Imperial Tobacco Group PLC 3349 -16.00 Tui AG 1071 -
Tobacco (2) 44781.79 0.95 49844.86 44362.44 42972.31 39390.35 4.12 1.31 18.53 1291.78 26856.95
FTSE North America Small Cap 1487 699.63 1.0 -1.3 2.41.6 833.87
1.6 Beverages 48 556.49 0.8 0.8 3.4 792.31 4.8 2.5 Inmarsat PLC 885.00 -15.00 Unilever PLC 2889 20.00
Health Care (20) 9569.21 1.03 10651.12 9471.70 9295.24 9235.00 3.58 0.65 42.66 203.85 6870.01
FTSE North America 718 304.07 0.8 2.0 2.91.7 406.28
2.1 Food Producers 102 571.96 0.9 0.9 3.6 832.69 5.4 2.2 Intercontinental Hotels Group PLC 2743 120.00 United Utilities Group PLC 883.00 -0.50
Health Care Equipment & Services (8) 6954.08 1.81 7740.31 6830.15 6765.65 5834.62 1.46 2.19 31.27 60.90 5859.03
FTSE Developed ex North America 1373 244.49 0.7 0.1 6.84.8 377.02
2.8 Household Goods & Home Construction 44 407.16 0.7 0.7 2.8 571.15 4.4 2.3 International Consolidated Airlines Group S.A. 542.00 -9.00 Vodafone Group PLC 241.05 0.10
Pharmaceuticals & Biotechnology (12)12997.24 0.96 14466.73 12874.18 12623.24 12698.03 3.78 0.60 44.18 292.29 8281.71
FTSE Japan Large Cap 174 340.12 0.0 -0.7 12.611.5 421.34
1.7 Leisure Goods 26 136.05 1.4 1.4 8.0 173.33 8.6 1.2 Intertek Group PLC 2438 19.00 Weir Group PLC 1555 24.00
Consumer Services (98) 4999.80 -0.11 5565.08 5005.12 4974.96 4273.33 2.17 1.94 23.74 72.84 4473.63 FTSE Japan Mid Cap 305 491.95 0.3 0.4 16.715.7 589.97
1.4 Personal Goods 76 636.64 1.0 1.0 9.2 855.78 10.4 1.9
Food & Drug Retailers (7) 3279.68 0.52 3650.48 3262.63 3236.59 3494.91 2.15 0.50 93.70 41.87 3735.43 Intu Properties PLC 326.50 -6.20 Whitbread PLC 5145 -
FTSE Global wi JAPAN Small Cap 776 516.25 0.0 -0.5 11.210.1 638.73
1.6 Tobacco 12 1191.22 0.8 0.8 11.0 2284.00 13.6 3.9 Itv PLC 271.60 -4.60 Wolseley PLC 4210 -8.00
General Retailers (33) 3151.63 0.32 3507.95 3141.51 3113.34 2593.53 2.04 2.35 20.87 42.55 3418.93
FTSE Japan 479 140.45 0.1 -0.5 13.4 1.7 Health Care
12.3 195.59 159 490.63 0.6 0.6 12.9 678.95 14.3 1.7 Johnson Matthey PLC 2891 -6.00 Wpp PLC 1461 -5.00
Media (23) 7479.34 -0.52 8324.96 7518.56 7382.15 6205.85 2.60 1.71 22.49 129.46 4368.03
FTSE Asia Pacific Large Cap ex Japan 491 590.36 0.6 -4.4 -4.1 871.54
-2.3 3.1 Health Care Equipment & Services 58 666.18 0.4 0.4 12.8 760.57 13.4 1.1 Kingfisher PLC 359.30 -3.20
Travel & Leisure (35) 8346.91 -0.23 9290.62 8366.23 8426.23 6863.87 1.88 2.50 21.30 112.01 7550.63
FTSE Asia Pacific Mid Cap ex Japan 441 787.26 0.4 -5.1 -2.3 1121.13
-0.9 2.7 Pharmaceuticals & Biotechnology 101 377.41 0.6 0.6 13.0 542.29 14.6 1.9
Telecommunications (8) 4147.52 -0.54 4616.45 4170.17 4091.20 3440.66 3.80 1.93 13.65 82.62 4260.27 FTSE Asia Pacific Small Cap ex Japan 1374 527.31 0.3 -6.5 -1.3 741.30
0.1 2.7 Consumer Services 386 407.54 0.9 0.9 8.9 525.95 10.0 1.6
Fixed Line Telecommunications (6) 5382.71 -1.28 5991.28 5452.24 5371.82 4527.08 2.59 1.97 19.54 15.48 4548.69
Mobile Telecommunications (2) 5435.55 -0.06 6050.10 5438.80 5320.75 4468.93 4.59 1.91 11.41 168.70 5001.50
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
-3.9 732.09
-2.2 3.0 Food & Drug Retailers
-5.6 919.75
-3.7 3.1 General Retailers
54 328.79
120 533.11
9.3 441.54
11.5 671.37
Utilities (8) 8212.93 -0.32 9141.49 8238.96 8179.37 8571.26 5.03 1.35 14.72 295.54 8630.87 FTSE Emerging Large Cap 476 620.33 1.1 -6.4 -5.1 882.34
-3.2 3.1 Media 91 322.19 1.0 1.0 7.1 416.76 8.3 1.7 Jul 30 Jul 29 Jul 28 Jul 27 Jul 24 Yr Ago
Electricity (3) 8762.87 0.33 9753.60 8734.22 8724.01 9427.45 5.79 1.43 12.09 493.70 11641.50 FTSE Emerging Mid Cap 460 796.96 0.8 -6.1 -7.5 1120.64
-5.8 2.8 Travel & Leisure 121 384.79 0.7 0.7 6.9 501.26 8.0 1.6 SEAQ Bargains 4078.00 4765.00 5194.00 5374.00 5374.00 5374.00
Gas Water & Multiutilities (5) 7632.81 -0.49 8495.79 7670.38 7602.35 7898.67 4.82 1.33 15.65 232.42 8028.41 FTSE Emerging Small Cap 1016 660.14 0.9 -7.3 -6.7 897.62
-5.1 2.9 Telecommunication 93 171.88 1.3 1.3 2.9 298.08 5.6 3.9 Order Book Turnover (m) 38.34 42.33 36.84 - - -
Financials (283) 4913.55 0.12 5469.08 4907.84 4879.36 4549.32 3.19 1.90 16.51 104.17 4236.71 FTSE Emerging Europe 98 311.88 2.0 -5.7 3.40.1 454.15
4.5 Fixed Line Telecommuniations 43 140.65 1.2 1.2 2.7 266.41 5.8 4.4 Order Book Bargains 861907.00 843317.00 778484.00 - - -
Banks (9) 4434.77 0.23 4936.17 4424.54 4388.06 4438.58 3.70 1.29 20.88 107.97 3010.22 FTSE Latin America All Cap 243 752.64 2.1 -8.0 -16.5 1098.44
-15.1 3.5 Mobile Telecommunications 50 186.77 1.4 1.4 3.2 294.27 5.4 3.3 Order Book Shares Traded (m) 1356.00 1287.00 1199.00 - - -
Nonlife Insurance (10) 2656.33 -0.64 2956.65 2673.44 2672.81 2160.34 2.58 1.48 26.20 46.33 4415.80 FTSE Middle East and Africa All Cap 214 774.90 1.8 0.9 2.3 2.7 Utilities
0.7 1141.35 163 249.23 0.4 0.4 -6.7 450.10 -4.6 3.9 Total Equity Turnover (£m) 2098.24 0.09 0.05 0.23 0.23 0.23
Life Insurance/Assurance (11) 8096.08 0.76 9011.43 8034.93 8030.70 7259.07 3.32 1.75 17.18 200.42 7344.27 FTSE Global wi UNITED KINGDOM All Cap In 330 368.28 1.6 -0.5 4.6 3.5 Electricity
2.5 573.09 113 268.63 0.3 0.3 -5.3 480.38 -3.2 3.7 Total Mkt Bargains 965023.00 3.00 6.00 3.00 3.00 3.00
Index- Real Estate Investment & Services (24) 3242.32 -0.25 3608.90 3250.29 3190.15 2596.00 1.73 5.89 9.80 34.10 8262.60 FTSE Global wi USA All Cap 1972 522.48 0.8 2.0 3.8 1.9 Gas Water & Multiutilities
2.7 663.46 50 270.41 0.5 0.5 -9.1 500.03 -6.9 4.2 Total Shares Traded (m) 3395.00 0.00 0.00 0.00 0.00 0.00
Real Estate Investment Trusts (23) 3047.15 -0.64 3391.67 3066.64 3051.89 2524.85 2.68 6.75 5.53 55.07 3562.29 FTSE Europe All Cap 1390 417.18 1.0 0.7 7.2 3.1 Financials
4.7 632.68 667 219.92 0.8 0.8 1.9 338.19 3.8 2.7 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (31) 8062.14 -0.08 8973.65 8068.84 8011.54 6607.93 2.80 2.16 16.57 135.72 8658.98 FTSE Eurobloc All Cap 636 388.67 0.4 1.7 8.0 2.9 Banks
5.5 597.84 241 203.75 0.9 0.9 1.3 333.55 3.5 3.1 (c) Market closed.
Equity Investment Instruments (175) 7755.34 -0.17 8632.17 7768.53 7738.36 7249.63 2.52 1.15 34.56 120.30 4034.89 FTSE RAFI All World 3000 3022 5904.37 0.9 -0.9 2.1 3.0 Nonlife Insurance
0.2 7355.71 69 220.61 0.5 0.5 3.0 305.47 4.8 2.2
Non Financials (361) 4177.13 0.59 4649.40 4152.56 4101.24 4210.46 3.48 1.54 18.68 84.43 5757.33 FTSE RAFI US 1000 1007 9271.23 0.9 0.9 -0.2 11589.32
1.1 2.4 Life Insurance 49 219.74 1.1 1.1 4.1 330.13 5.9 2.5
Technology (21) 1372.22 1.46 1527.36 1352.43 1350.43 1084.31 1.31 2.22 34.31 13.08 1707.34 FTSE EDHEC-Risk Efficient All-World 3027 330.74 0.8 0.6 4.8 2.2 Financial Services
3.5 440.77 137 239.22 0.9 0.9 3.3 316.02 4.4 1.8 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1677.27 0.35 1866.90 1671.36 1674.49 1251.57 1.88 1.75 30.24 24.46 2185.11 FTSE EDHEC-Risk Efficient Developed Europe 514 294.21 0.9 0.9 7.7 2.6 Technology
5.6 426.97 182 174.33 0.4 0.4 1.3 206.48 2.3 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 (8) 1575.10 2.35 1753.18 1539.00 1532.64 1298.21 0.87 3.00 38.34 8.51 1800.95 Software & Computer Services 79 293.68 0.8 0.8 8.2 335.46 8.9 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 103 133.75 0.0 0.0 -4.5 162.54 -3.2 2.3 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
FTSE 100 6673.31 6635.22 6650.36 6671.46 6685.16 6678.67 6689.34 6653.33 6659.06 6697.20 6633.73 mid cap) - please see 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 17573.06 17547.74 17558.66 17557.50 17530.15 17510.35 17533.17 17468.13 17500.06 17636.85 17438.04 (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 |
FTSE SmallCap 4703.19 4701.01 4701.92 4703.45 4701.66 4701.20 4700.56 4698.11 4700.17 4704.57 4697.36
FTSE All-Share 3639.09 3621.57 3628.57 3637.76 3642.75 3639.23 3644.64 3626.65 3630.31 3648.15 3620.26 For constituent changes and other information about FTSE, please see © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:12:53:15 Day's Low08:00:15 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 6366.51(06/01/2015) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:12:53:00 Day's Low13:50:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3434.73(06/01/2015)
Further information is available on © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the