WEDNESDAY 10 FEBRUARY 2016 WORLD BUSINESS NEWSPAPER EUROPE

Martin Wolf Read all about it! Shy unicorns

The battle over Brexit matters The upstart challenge to Why tech start-ups are wary
to the world — COMMENT, PAGE 9 Fleet Street’s finest — BIG READ, PAGE 7 of public markets — PAGE 24

Deutsche eyes emergency debt Briefing

i Energy bets push Icahn to record low
Carl Icahn’s publicly traded investment vehicle,

buyback as bank rout deepens Icahn Enterprises, has slid to its lowest level in
three years, after the veteran investor made a string
of disastrous bets on energy companies.— PAGE 13

i UK spooks to strong-arm tech groups

Britain’s intelligence services have told the biggest
3 Move worth several billion euros 3 Focus on senior bonds 3 Berlin backing for lender technology groups they will use the law to force
them to open up encrypted communications,
according to insiders.— PAGE 6
JAMES SHOTTER — FRANKFURT
PATRICK JENKINS AND
GAVIN JACKSON — LONDON
Credit Suisse i Saudis in talks over Syria ground troops
Share price Riyadh is discussing plans to deploy troops to create
Deutsche Bank is considering buying a safe zone in Syria in a bid to keep alive a rebellion
back several billion euros of its debt, as at risk of collapse amid a Russian-backed push by
Germany’s biggest bank steps up efforts Jan 1 2015 Assad forces. Talks include Turkey.— PAGE 3
to shore up the tumbling value of its
securities against the backdrop of a
SFr24.38 Feb 9 2016 i ‘Fishball revolution’ in Hong Kong
broader rout of financial stocks.
After European banks suffered a sec- Deutsche Bank
SFr13.01 Riot police have clashed with protesters
after an attempt to remove street
ond day of sharp falls, Deutsche Bank is Share price hawkers selling fishballs, in the
expected to focus its emergency buy- latest sign of discontent over social
back plan on senior bonds, of which it inequality and perceived Beijing
has about €50bn in issue. Banks can Jan 1 2015 interference.— PAGE 2
generate capital gains by buying back
bonds at a discount to their face value.
€25.15 i Brussels discusses Greece migrant move
The move was unlikely to involve so- Feb 9 2016 Brussels is examining ways of letting EU states send
called contingent convertible bonds UniCredit €13.23 asylum seekers who arrived via Greece back to the
which, with the bank’s shares, have Share price country despite European courts banning such
been the butt of a brutal investor sell-off practices due to human rights abuses.— PAGE 6
in recent days, people briefed on the
plan said.
Jan 1 2015 i Bloomberg eyes run for White House
The news came as Wolfgang Schäuble,
Germany’s finance minister, and John
€5.23 Billionaire media owner and former New York
mayor Michael Bloomberg has criticised the tone of
Feb 9 2016
Cryan, Deutsche’s chief executive, the presidential debate as he revealed to the FT that
sought to assuage market fears. €2.77 he was considering a White House run.— PAGE 4
Mr Schäuble said he had “no concerns”
about the bank, while Mr Cryan insisted i Thailand war game shows US priorities
its position was “absolutely rock solid”. The US has opened Southeast Asia’s biggest annual
The bank’s shares still fell 4 per cent, FT graphic multilateral war game in Thailand, as Washington’s
Source: Thomson Reuters Datastream Photo: Arnd Wiegmann/Reuters
taking the decline since the start of the fears over Chinese influence in the region trump its
year to 40 per cent. disapproval over Bangkok’s military junta.— PAGE 2
Other European banks fared even
worse, with Credit Suisse falling 8 per suspend coupons and may convert into companies was trading at 119 basis under pressure, Deutsche put out a
cent and UniCredit 7 per cent, as inves- equity in a crisis — has prompted an points, near its highest level since 2013. statement saying it could pay coupons Datawatch
tor nervousness intensified over the rel- investor dash to buy protection. Broader investor concerns about the on the hybrid capital, due in April.
ative weakness of European bank capi- A popular credit derivatives index health of the financial sector have coin- The bank has plenty of scope for a
tal and earnings amid broader market that tracks the likelihood of default of cided with specific questions about bond buyback, with €220bn of liquidity Euro notes Many eurozone
turmoil. US banks, which have also been investment-grade debt of European Deutsche’s restructuring programme. reserves. It has hundreds of senior By denomination, Dec 2015 (%) citizens have
hard hit in recent weeks, were only mar- The market jitters have come at a bonds outstanding, with a total value of % of notes % of never seen a €500
ginally weaker at lunchtime yesterday. turning point. The German group around €50bn as of September 2015, in issue total value note, yet they
0 10 20 30 40 account for 30 per
Investors have been rattled by the Comment Fears over ECB negative interest rates expanded rapidly over the past two dec- according to the company. cent of the value
5
prospect of negative interest rates C Report page 6 ades, buying up Morgan Grenfell and The cost of buying protection to hedge
spreading across the developed world.
& Analysis Coco bonds: a mug or two Bankers Trust as it sought to challenge against declining prices for these bonds
10 of notes in issue.
Fears are rising on
Japan yesterday became the first major Lenders C Lex page 12 the US groups. has rocketed in the past week and the
20
the convenience
50
economy with a sub-zero borrowing in turmoil Deutsche turns to towering task ahead However, Deutsche drew a line under senior five-year euro credit default swap
100
of the notes for
rate for 10-year debt as the total of gov- C Companies page 15 this strategy last October when it was trading at 242 basis points yester- criminals and the
200
ernment bonds trading with negative CDS prices soar amid bank bond fears announced a restructuring plan as it cut day — its highest level since the end of ease of hoarding
500 cash in a climate
yields climbed to a new peak of $6tn. C Markets page 20 jobs, shed assets and exited 10 markets. the eurozone crisis in 2011.
Fears about the solidity of bank debt Concerns persist over banks After its shares lost 9.5 per cent on Additional reporting by Joe Rennison in Source: ECB of negative rates
— mainly European cocos which can C Report page 21 Monday, and its coco bonds also came New York and Leo Lewis in Tokyo

Europe joins probes of possible rigging

of $1.5tn state-sponsored bond market
JIM BRUNSDEN — BRUSSELS tition department has sent question- investigations into other markets, such
naires to a number of market partici- as derivatives trading.
European regulators have opened a
pants as part of an early-stage probe into The Financial Times reported last
preliminary cartel investigation into
possible manipulation of the price of month that Crédit Agricole, Nomura
possible manipulation of the $1.5tn
supranational, subsovereign and and Credit Suisse were among a number
government-sponsored bond market,
Gloves off in Madrid fight in the latest effort to root out rigging
agency debt, known as the SSA market. of banks investigated by the DoJ as part
over radical puppeteers This market’s debt issuers include of its investigation into possible manip-
involving financial traders.
organisations such as the European ulation of SSA markets.
Report i PAGE 6 The inquiry comes amid revelations Bank for Reconstruction and Develop- London-based traders at these three
that the US Department of Justice and ment and regional borrowers such as banks, in addition to a trader at Bank of
the UK’s Financial Conduct Authority Germany’s Länder. A common feature is America, are on leave in response to the
Austria €3.60 Macedonia Den220
Bahrain Din1.7 Malta €3.50 are also investigating the market. that the bonds often have a form of DoJ investigations, according to people
Belgium
Bulgaria
€3.60
Lev7.50
Morocco
Netherlands
Dh43
€3.60 The investigations are part of a cam- implicit or explicit state guarantee. familiar with the matter.
Croatia
Cyprus
Kn27.50
€3.50
Nigeria
g
Norway
Naira715
NKr34
paign by antitrust regulators to root out Banks and interdealer brokers have The questionnaires will help Mar-
Czech Rep
Denmark
Kc100
DKr32
Oman
Pakistan
OR1.50
Rupee 280
collusion in financial markets after rev- so far been fined about $20bn by grethe Vestager, the commission’s com-
Egypt
Finland
E£20
€4.10
Poland
Portugal
g
Zl 18
€3.50
elations that groups of traders worked authorities around the world in petition chief, decide whether there are
France
Germany
€3.60
€3.60
Qatar
Romania
QR15
Ron17
together to manipulate Libor, a key rate response to the Libor and foreign grounds to launch a formal probe.
Gibraltar
Greece
£2.70
€3.50
Russia
Saudi Arabia
€5.00
Rls15
that underpins the price of loans around exchange rate scandals which saw over a Complex cartel cases typically take a
Hungary
g y Ft990 Serbia NewD420 the world. Further allegations followed dozen leading financial institutions minimum of four years to complete and
India Rup195 Slovak Rep €3.60
Italy €3.50 Slovenia €3.50 that traders colluded to rig foreign investigated by antitrust authorities. are usually based on evidence from tip-
Kazakhstan US$5.50 Spain €3.50
Kenya Kshs300 Sweden SKr37 exchange markets. The findings led to criminal prosecu- offs provided by whistleblowers. The
Kuwait KWD1.50 Switzerland SFr5.90
Latvia €6.99 Tunisia Din7.50 The European Commission’s compe- tions of individual traders and spurred commission declined to comment.
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

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2 ★ FINANCIAL TIMES Wednesday 10 February 2016

INTERNATIONAL
GLOBAL INSIGHT
Street violence
INDIA

Hong Kong police and protesters Amy

Kazmin
clash in latest show of discontent New Delhi’s attempts
Swoop on illegal hawkers threatening the autonomy and
freedoms guaranteed for 50 years when
to bolster African ties
fuels unrest as fears grow
over freedom and equality
the former British colony was handed
over in 1997.
Since the failure of the non-violent
tested by mob attack
BEN BLAND — HONG KONG Occupy movement to win full democ-
racy for the city of 7m people, a number

Hong Kong police and several hundred
protesters fought running battles in a
popular commercial district early yes-
terday morning in the worst street vio-
lence the Asian financial centre has seen
since the Occupy movement brought
parts of the city to a standstill in 2014.
Police fired warning shots and used
baton charges and pepper spray to
subdue what the government called
“mobs” after officials faced demonstra-
tions when they attempted to remove
illegal hawkers.
The incident, which took place at the
start of the lunar new year, unfolded
after officers from the food and hygiene
department tried to stop unlicensed
traders from selling fishballs and other
snacks in Mong Kok, a densely popu-
lated shopping area.
Protesters, including some from radi-
cal groups urging a confrontational
stance against the government, gath-
ered in a stand-off with police that was
labelled the “fishball revolution” on
social media before violence erupted.
As tensions escalated, protesters
threw bricks, bottles and other objects.
Police said there were indications that
these were “organised activities”.
They said scores of officers had been
injured and 24 people were arrested on
suspicion of assault, obstructing officers
and public disorder. Photographs and
video on social media showed a number
of badly injured protesters and police.
The clashes are the latest sign of grow-
ing discontent in Hong Kong over the
government’s perceived failure to tackle
social inequality and defend the semi-
autonomous territory’s freedoms from
interference by Beijing.
The city was shaken by the disappear-
ance of five booksellers last year, four of
whom turned out to be in the custody of
mainland Chinese police and accused of
unspecified crimes. Their plight has
stoked fears that Beijing is meddling
more deeply in Hong Kong’s affairs and
Strategic alliance
N
of small, more radical groups have been
set up calling for independence for Hong
Kong and tougher resistance against the
authorities, using violence if necessary.
CY Leung, Hong Kong’s chief execu-
tive, condemned what he called a riot,
saying protesters were “seriously jeop-
ardising the safety of police officers and
other people at the site”.
He said the police would “apprehend
the mobs and bring them to justice”.
When asked by a reporter whether
the violence was the result of dissatis-
faction with his government, Mr Leung
said: “You have to ask those people
who appeared to be organisers behind
this riot.” He added that he would
enforce “the laws of Hong Kong”.
But Michael Davis, a professor of law
at the University of Hong Kong, urged
the government to look at the deeper
issues. He said the fact the protesters
had rallied round the cause of the street
hawkers underlined broader concerns
with growing social inequality in the city
and a sense that the government was
becoming more heavy-handed.
“You have to go back to the govern-
ment and ask why has this radicalisa-
tion occurred?” he said. “Support for
more extreme tactics may be in the
minority but the concerns they are rais-
ing about democratic reforms and liveli-
hood issues are fairly widespread and
the government ignores this at its peril.”
Among those arrested was Edward
Leung, a philosophy student who is a
legislative council candidate for a group
called Hong Kong Indigenous, according
to the group’s Facebook page.
He told the Financial Times last
month that Hong Kong residents should
use “any means necessary” to fight
against what he called the “re-coloniali-
sation” of the city by China.
“If the police attack you, then you
have to fight back,” he said, citing
Malcolm X, the US black rights cam-
Confrontation: protesters hurl objects at police in Hong Kong yesterday — Edward Wong/AFP/Getty Images paigner, as his political idol.
ot long ago, India prime minister Narendra
Modi hosted more than 40 African leaders for
a glitzy jamboree to reinvigorate New Delhi’s
drifting relations with Africa.
Historically, the two continents had strong
commercial and cultural links, forged by Indian Ocean
traders. Now, India wants access to Africa’s vast energy
reserves and its expanding middle-class markets. But it is
struggling to counter China’s clout on the continent.
Admitting India had not been “as attentive” to Africa as
it should, Mr Modi called for a new “partnership for pros-
perity”. To strengthen frayed ties, he promised $10bn of
concessional credit to Africa, and 50,000 scholarships for
Africans to study in India, over the next five years.
But India’s courtship of Africa still faces formidable
obstacles. Not least is the deep ambivalence of ordinary
Indians towards Africans — especially the African students
living in ever-greater numbers in their midst.
That stark reality was highlighted last week by a vicious
mob attack on four Tanzanians — including a 21-year-old
female student — in Bangalore, India’s high-tech capital.
The assault followed a fatal car accident in which a 35-
year-old Indian pedestrian was killed in an incident
involving a Sudanese driver. A mob set his car ablaze.
When the uninvolved Tanzanians drove past half an
hour later, the mob attacked and their car was set alight.
The woman and her friends were badly beaten.
As images of the bloodied students and charred vehicle
spread, John Kijazi, Tanzania’s high commissioner to
India, called it a racist attack and demanded action.
“She was attacked
because she was black,
just like the person who
Discomfort with
was driving the vehicle Africans is rooted
that caused the accident,”
the diplomat told the
in old, colonial-era
Indian Express. “There is stereotypes of
an element of mob justice
to this, but there is also an
African society
element of racism.”
For its part, New Delhi swung into damage-limitation
mode. Sushma Swaraj, the foreign minister, tweeted that
she was “deeply pained over the shameful incident”.
Indian diplomats escorted Mr Kijazi to Bangalore to
press for action and greater security for African students.
Eventually six Bangalore police officers were suspended,
and a few arrests were made.
But New Delhi is adamant the attack was not racist,
rather an “isolated case” of mistaken identity, fuelled by
the accident. It warned local media to “refrain from being
judgmental”, lest they harm the country’s image.
Mr Kijazi softened his tone, too, later calling the violence
“a case of friction” between two communities.
Yet few Africans — and thoughtful Indians — are con-

War game reflects US reluctance to punish Thai junta
MICHAEL PEEL — BANGKOK
The US kicked off Southeast Asia’s
biggest annual multilateral war game
in Thailand yesterday, in a reminder of
how much has changed in one of its
oldest alliances in the region — as well
as how little.
While Washington has scaled down the
27-country Cobra Gold exercise for the
second year running because of the
2014 military coup in Bangkok, sanc-
tions on the ruling generals remain
light.
The limited punitive measures are
seen as reflecting America’s greater pre-
occupation with rising Chinese influ-
ence in the region, a subject likely to be
discussed at a California summit next
week with Southeast Asian leaders.
Glyn Davies, the US ambassador to
Thailand, welcomed Cobra Gold partici- ers or take part in selected activities ‘As deep
pants — including China — to the 35th such as humanitarian assistance exer-
and broad
edition of an exercise he said showed cises. Observers include Thailand’s
“America’s unshakeable, longstanding neighbour Myanmar, where military as our
commitment to this region”. contacts with the US are still tightly
partnership
“That commitment is strong and restricted under sanctions imposed by
enduring, including here in Thailand, Washington during the junta dictator- is today, it
where it transcends any temporary ship that stepped down in 2011.
challenges that arise in our partner- Thailand has avoided such a cold will grow
ship,” he told guests at the 10-day exer- shoulder despite frequent military stronger
cise’s opening ceremony. “As deep and coups of its own, including two in the
broad as our partnership is today, it will past 10 years. still when
grow stronger still when, as the prime This is a reflection of the importance Thailand
minister has affirmed, Thailand returns of a bilateral alliance with the US first
to elected governance.” inked in an 1833 “amity and commerce” returns to
Cobra Gold is a tiered event with five treaty and then built upon when both elected
countries in addition to the US and Thai- countries signed the now-defunct
land holding full-participant status: Southeast Asia Treaty Organization’s governance’
Indonesia, Japan, Malaysia, Singapore Manila security pact in 1954.
and South Korea. Other countries, Thailand played an important role
including China and India, are observ- during Washington’s military cam-
paigns in Vietnam, Cambodia and Laos
in the 1960s and 1970s, providing bases
for B-52 bombers and rest and relaxa-
tion for US forces. The US now desig-
nates the country as a “major non-Nato
ally”.
The latest coup in Bangkok triggered
automatic US sanctions, including the
suspension of a few million dollars of
security aid.
But Washington has shown little
appetite for either extending those
moves or pushing its criticism beyond
measured calls for the generals to stick
to their promise of holding elections.
In December, a joint Thai-US state-
ment after a “strategic dialogue”
between senior officials reaffirmed the
two countries’ commitment to “pro-
moting peace, security, and prosperity
in the Asia-Pacific region and beyond”.
vinced. “In the eyes of the mob, one dark-skinned African
is as good as another,” wrote Indian novelist Sandip Roy.
Indian treatment of visiting Africans has ruffled rela-
tions between the continents before. In 2013 Indian politi-
cians in Goa publicly called Nigerians “wild animals” and
“a cancer” after Nigerians protesting against a compa-
triot’s death clashed with local police.
Goan villagers imposed a social boycott, refusing to rent
them rooms or motorcycles, prompting official Nigerian
warnings of repercussions for “one million Indians” living
in their country.
In 2014 African diplomats protested after a Delhi politi-
cian led a midnight mob raid on an apartment of Ugandan
women, who locals suspected of running a drugs and pros-
titution racket. Women were forced to submit to urine
tests, but no evidence of criminal activity was found.
Indians are highly colour-conscious among themselves,
fuelling a big business in “fairness creams”. But discomfort
with Africans runs deeper, rooted in old, colonial-era
stereotypes of African society as barbaric and licentious.
China wrestled with this in the late 1980s, when there
were significant clashes between Chinese and African
students. But India can ill-afford such a conflagration in
today’s connected world.
amy.kazmin@ft.com

Pakistan
MAKE A SMART INVESTMENT
Subscribe to the FT today at ft.com/subscription Literature festival offers novel escape from Karachi hardships
FARHAN BOKHARI — KARACHI mined to reclaim the right to a normal Alongside Mr Jogio, a diverse commu- chi”. New films and events such as this,
life, including reading books and appre- nity of book lovers queued to enter the she says, prove that “Pakistan is being
Most weekends, Salim Jogio takes his
ciating art. well-fortified Beach Luxury Hotel, the rejuvenated”.
three children to the seaside on the
Oxford University Press Pakistan, the literature festival venue. Those attend- Mr Jogio laments that in Karachi dis-
edge of Pakistan’s most violent and
organisers of the literary event, say the ing the events — including public tricts such as his, bookshops are “virtu-
NOVEMBER 7 2015

overpopulated city, leaving behind the

number of visitors this year exceeded debates with authors and discussions on ally non-existent” except for those sell-
power cuts and cooking gas shortages
the 125,000 of 2015. The Karachi Arts the future of the media or the future of ing school text books. With a pinch of
afflicting the Karachi neighbourhood
Council says it has doubled its member- the India-Pakistan dispute over Kash- nostalgia, he remembers reading story
FINANCIAL TIMES Spain; Fabripress, C/ Zeus 12, Polígono Industrial Meco- of Lyari where they live in a two-room
ship from five years ago to about 7,000 mir — ranged from young people books with his cousins in the 1970s in his
1 Southwark Bridge, R2, 28880 Meco, Madrid. Legal Deposit Number shanty home.
London SE1 9HL (Deposito Legal) M-32596-1995; Publishing Director, today. “When you start something pro- dressed in western-style jeans and native village, more than 450km north
Lionel Barber; Publishing Company, The Financial Times
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office; C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid.
ISSN 1135-8262..
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UAE; Al Nisr Publishing LLC, P.O.Box 6519. Dubai. Editor shocked when he told them he was tak- Ahmed Shah. “We have an arts school, a For Sharmeen Obaid-Chinoy, an mathematics teacher also visiting the
in Chief: Roula Khalaf. Origin of publication, twofour54, ing them to what he described as “a music academy and a theatre academy Oscar-winning documentary film- festival, feels a similar sense of loss for a
Media Zone, Abu Dhabi.
France; Publishing Director, Dominic Good, 40 Rue La number of bookshops just in one place” and the interest in reading and arts is maker, the festival represents an annual bygone era. “Food outlets are the fast-
Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)
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Reproduction of the contents of this newspaper in any Swaths of Karachi have been “Tali- cafés and spend obscene amounts of
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consent. ‘Financial Times’ and ‘FT’ are registered trade
marks of The Financial Times Limited. pupils attend conservative Islamic money on books.”
madrassas rather than conventional Mr Jogio’s only regret is that he spent
The Financial Times adheres to a self-regulation regime
under the FT Editorial Code of Practice: schools. But security forces have three hours at the festival but still left
www.ft.com/editorialcode
launched a crackdown against violent without enough books for his family. “I
Reprints are available of any FT article with your
company logo or contact details inserted if required
criminal gangs, including Sunni Muslim make about 1,000 rupees ($9.50) per
(minimum order 100 copies). extremist groups that condemn music day. Some of the books here cost more
One-off copyright licences for reproduction of FT articles and any arts or literature deemed to be than my daily wage. There are limits to
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For both services phone +44 20 7873 4816, or email “western”. how much I can spend beyond school-
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Some Karachi residents seem deter- Book lovers browse through old texts at a Karachi market — Rizwan Tabassum/AFP/Getty books for my children.”
Wednesday 10 February 2016
Riyadh weighs sending ground troops to Syria
Kingdom discusses setting up safe zone with Turkey and other allies in attempt to prop up struggling anti-Assad rebels
MEHUL SRIVASTAVA — ISTANBUL
ERIKA SOLOMON — BEIRUT
SIMEON KERR — DUBAI
GEOFF DYER — WASHINGTON
Saudi Arabia is discussing plans to
deploy ground troops with regional
allies including Turkey for a safe zone in
Syria to try to keep alive a rebellion at
risk of collapse, as a Russian-backed
offensive by regime forces encroaches
on the northern province of Aleppo.
Although western officials have dis-
missed the plans as lacking credibility,
they are a sign of the desperation many
of Syria’s opposition backers feel
towards what looks like an increasingly
bleak outcome in the Syrian war.
Two people familiar with Saudi plans
told the Financial Times that high rank-
ing Gulf officials were in Riyadh meeting
Turkish officials to discuss options for
deploying ground troops to head a coali-
tion of fighters inside Syria.
Aleppo city, Syria’s former business
hub, is the last large urban centre con-
trolled by the rebels. Its countryside, on
Saudi tensions run high after cleric’s execution
Saudi women
demonstrate in
Qatif after the
execution of Shia
Muslim cleric
Nimr al-Nimr last
month
STR/AFP/Getty Images
More Shia protests expected
as ruling Sunni fear unrest
will worsen ties with Tehran
SIMEON KERR — AWAMIYA, SAUDI ARABIA
A month after Saudi Arabia executed
firebrand Shia cleric Sheikh Nimr al-
Nimr, his home town of Awamiya
remains strewn with black flags com-
memorating his death.
The authorities have dubbed the
dilapidated village in the oil-rich east-
ern province the most dangerous place
in the conservative Sunni kingdom, and
it bears the scars of confronting the
state. Shia slogans are ubiquitous and
some buildings are pockmarked with
bullet holes. Two armoured personnel
carriers stand sentry outside the local
security post but the jittery police rarely
patrol the streets.
“The people and the government are
both waiting, ready to pounce,” said
Mohammed al-Nimr, brother of the exe-
cuted sheikh. “There is only pessimism
here now.”
The execution caused an uproar in
Shia Iran and has prompted concerns
that unrest within Saudi Arabia’s minor-
US Congress
Republicans cite ‘skyrocketing debt’ to slam door on Obama’s last budget plans
BARNEY JOPSON — WASHINGTON
The White House made one of its final
pitches for cross-party co-operation
under President Barack Obama with
the launch yesterday of the president’s
last budget proposal, but Republicans
in Congress slammed the door shut on
the administration.
The chances of any budget proposals
being enacted are slim as Republican
leaders took the unusual step of refusing
to let the White House budget director
explain its $4tn plan on Capitol Hill.
While the final budget proposal from
“lame duck” presidents in their last year
is often considered irrelevant, a senior
Obama administration official said that
was wrong and cited three policy pro-
posals on which bipartisan agreement
the northern border with Turkey, is
their lifeline.
President Bashar al-Assad’s forces,
bolstered by Iranian-funded Shia mili-
tias, last week advanced into opposi-
tion-held territory in Aleppo’s northern
countryside under the cover of Russian
air strikes. The violence prompted
thousands of civilians to flee, exacerbat-
ing the already vast humanitarian crisis
in the area.
Publicly, Saudi Arabia, the UAE and
Bahrain are calling for troops to be
deployed as part of the US-led interna-
tional coalition against Isis. This comes
after Washington singled out Arab
countries for not doing more to fight
Isis. But regional observers say the
moves are cover for an intervention to
help the rebels.
Saudi officials are aiming to come up
with a plan in the next few weeks. Briga-
dier General Ahmed Asiri, spokesman
for the Saudi-led coalition in Yemen,
said on Monday that Saudi Arabia
would be willing to join any broader
Regional cold war. Minority anger
ity Shia, who claim to be the victims of speech that regularly flares across the
decades of discrimination by the ruling country’s social media.
al-Saud family, could become another
front in the worsening regional cold war have been killed by the security services
between Riyadh and Tehran.
The two countries are already locking the optimism of the Arab spring lured
horns via proxies in the bloody civil protesters on to the streets to call for
wars of Syria and Yemen, and the Saudis more Shia rights.
fear that Iran could foment Shia unrest
and turn the oil-rich province into more executions. The fathers of two of
another Bahrain, where Shia youths the young men executed alongside
have been confronting police on an Nimr protested their sons’ innocence
almost daily basis for the past five years. and called for international interven-
Although Awamiya has been calm tion to stop further executions.
since Nimr’s execution, activists say
demonstrations are expected tomorrow ernment will execute his son, Ali, who is
following the Shia tradition of com-
memorating deaths 40 days after bur-
ial. The authorities have refused Lebanonto
return the sheikh’s body, angering his
family and residents who believe the
decision is intended to stop his grave
turning into a shrine, a custom regarded
as idolatry by purist Sunni.
Many in the Saudi Shia community
say they feel trapped between stateEgypt
repression and the violence of Isis mili-
tants. The jihadis have launched five
suicide attacks at Shia religious sites in
Saudi Arabia over the past 14 months.
Shia activists also say the government is
not doing enough to stop anti-Shia hate
was feasible — Mr Obama’s “moonshot”
effort to find a cure for cancer; a plan to
tackle an epidemic of addiction to pre-
scription painkillers and heroin; and a
tax credit to support low-income work-
ers without children.
But the Republican committee chair-
men who usually hold hearings for the
White House to present its proposals
left little hope of cross-party comity,
reiterating their refusal to let Shaun
Donovan, White House budget director,
testify before Congress.
Mike Enzi, Republican chairman of
the Senate budget committee, said:
“The president’s final budget continues
his focus on new spending proposals
instead of confronting our country’s
massive overspending and skyrocketing
$19tn in debt.”
★ FINANCIAL TIMES
INTERNATIONAL
international ground force in Syria.
“We’re not there yet, but we are very
close,” one person familiar with the
plans told the FT, asking not to be iden-
tified.
The plans appear to be led by Riyadh’s
defence minister and deputy crown
prince, Mohammed bin Salman, whose
involvement makes some diplomats
reluctant to rule out an attempted inter-
al-Bab
Aleppo
Regime control
Feb 5 2016
Dec 1 2015
Sep 30 2015
5km
Activists say 28-30 Shia protesters
since protests broke out in 2011, when
There is also fear that there will be
Mohammed al-Nimr fears the gov-
SY RI A
J O R DAN IRAQ
KUWA IT IRA N
Awamiya BA HR AI N
QATAR
Riyadh UA E
Red
Sea
SAUDI ARABIA
S U DA N
OMAN
Y E ME N 500km
E RI T RE A
Overall the budget plan for the fiscal
year starting on October 1 would raise
taxes on big banks and the wealthy to
fund billions of dollars of spending on
renewable energy, education, infra-
‘The president’s final
budget continues
his focus on new
spending proposals’
structure and Medicaid, the health pro-
gramme for poorer Americans.
Senior administration officials dis-
missed Republican accusations of prof-
ligacy, saying the federal deficit in 2015
had fallen to 2.5 per cent of gross domes-
tic product, the lowest since 2007, even
vention. “I see all kinds of red flags. But
there is a new level of unpredictability
and erratic behaviour in the new Saudi
government,” said one western diplo-
mat. “With Mohammed bin Salman,
you just don’t know.”
A Saudi official said “there is not a sin-
gle plan yet [on military action], the
coalition is yet to decide.” Turkey, frus-
trated with US support for a Syrian
50km
TURKEY
Area of detail
al-Bab
Aleppo
SYRIA
Kurd control
Isis control
Source: Institute for the Study of War
on death row on terrorism charges he
denies. “I fear they will kill him,” he
said. The interior ministry says more
executions “cannot be ruled out”.
Elders in Qatif, a Shia town on the out-
skirts of the eastern oil city of Dam-
mam, continue to call for calm, saying
that a descent into violence would dam-
age chances for reform. “This situation
is still very tense,” said one community
leader. “But violence won’t benefit the
community in any way.”
He accused the authorities of confus-
ing peaceful protest with criminal gangs
and a fringe of protesters who have
taken up weapons since the authorities
used live ammunition against unarmed
demonstrators.
Major General Mansour al-Turki,
interior ministry spokesman, denies
that any protesters have been killed by
the police, but says that 17 policemen
and civilians have been killed by terror-
ists based in Awamiya. He said that
three of 23 people on a wanted list were
killed while being detained, and six
remained at large.
“Awamiya is very violent and danger-
ous,” he said. “Police are being targeted
by live ammunition on a daily basis.
We are doing our job under strict
regulations.”
though it is projected to rise this year.
Maya MacGuineas, president of the
Committee for a Responsible Federal
Budget, a bipartisan group, said the
White House had failed to propose
measures to bring the national debt
down to manageable levels.
“The president once promised not to
leave our fiscal problems for future gen-
erations to solve, but in this budget that
is exactly what he does,” she said.
Mr Obama has sought to bypass Con-
gress in the past 18 months by using his
executive powers to take action on cli-
mate change, immigration and gun con-
trol, but his ability to act unilaterally on
measures that require substantial fund-
ing is limited.
Democrats on the Senate budget com-
mittee — including Bernie Sanders, who
Kurdish militia, the YPG, has its own
reasons for intervening. It is keen to
undo advances made by the Kurds along
its border, said one Turkish official.
However, a senior official in the Turk-
ish prime minister’s office denies that it
is preparing to send ground forces. “All
these reports regarding this huge
number of troops are baseless. Yes, we
are talking to the Saudis and to all part-
ners on how to support the moderate
opposition. As a coalition partner to
fight Daesh [Isis], Turkey has a close
dialogue and co-operation with a large
number of countries.”
The location and details of any inter-
vention are disputed. Most options need
US air support, which is unlikely. Any
action risks causing a dramatic escala-
tion in the multi-sided war, which has
killed about 300,000 people, incubated
jihadi militants and driven hundreds of
thousands of refugees to Europe.
If Saudi and Turkish forces were
deployed at Syria’s northwestern border
crossings with Turkey, for example,
Nimr was uncompromising in his
approach towards securing more rights
for the Shia within the Sunni state. Most
older and richer Shia follow the more
moderate cleric Sheikh Hassan al-Saf-
far, who has sought to establish dialogue
with the al-Saud leadership. But while
many disagreed with Nimr’s hard line,
they were nonetheless shocked and
angered by his execution, the commu-
nity leader said.
Nimr’s brother, who also follows
Sheikh Hassan, called on the al-Saud
ruling family to introduce reforms that
could ease the Shia-Sunni divide.
“The true solution would come from
freedom and democracy — free elec-
tions, stopping corruption and rights for
women,” he said. But the sectarian
divide cuts deeper than ever in the con-
servative kingdom amid high tensions
with Iran.
Shia youths generally back Nimr’s
uncompromising approach, while
Sunni — who make up 85 per cent of the
population — generally supported the
sheikh’s execution.
One activist said that unless there was
political progress between the ruling
family in Riyadh and the Shia, future
violence was inevitable. “The blood of
Nimr won’t wash away silently,” he said.
is vying with Hillary Clinton to be the
party’s presidential candidate — wrote
to Mr Enzi this week to say they were
“disappointed and dismayed” at his
decision not to hold a hearing.
Jack Lew, US Treasury secretary, will,
however, be quizzed over the budget at a
hearing of the Senate finance committee
today.
When different parties are in control
of the White House and Congress, only a
few provisions from administration
budget proposals have historically
become law. But in an election year they
have the potential to influence debate.
The budget included a plan to invest
about $320bn over 10 years in a “clean”
transportation system, part of Mr
Obama's efforts to combat climate
change.
3
they would be inside Russia’s opera-
tional theatre. They would also be adja-
cent to territory controlled by the YPG.
“This would be a total nightmare for
the US,” said analyst Aaron Stein, of the
Atlantic Council in Washington. “What
happens if Russia kills a Turk? They
would be killing a Nato member.”
Those familiar with the Saudi plans
say there are back-channel conversa-
tions between Saudi and Russian offi-
cials over outlining theatres of opera-
tions — one for the Gulf and Turkish
backed rebels, and a region for Mr Assad
and his backers. If true, the most likely
option would be to try to set up a base
for rebels in eastern Syria, which is cur-
rently held by Isis.
Turkey has one means of exerting
pressure on western countries: the tens
of thousands of fleeing Syrians being
held at its borders. It may demand a safe
zone for them inside Syria or threaten to
allow them to flow toward Europe.
Syria’s future lies in its neighbours’
hands page 9
Online threat
President
seeks $19bn
in battle to
boost cyber
security
GEOFF DYER — WASHINGTON
The administration of Barack Obama is
asking Congress to increase funding for
cyber security by more than a third in
order to boost protection for the fed-
eral government and for consumers.
The plea for $19bn is part of a broader
cyber security plan announced by the
administration yesterday that calls for a
significant upgrade of government com-
puters and a push to hire professionals
with good cyber skills in the public
sector.
The requested 35 per cent budget
increase follows the high-profile hack
last year of the Office of Personnel Man-
agement when sensitive information of
more than 20m individuals was stolen —
with China being the leading suspect.
US intelligence officials said it was still
unclear if Chinese cyber theft had
diminished since the September agree-
ment between Washington and Beijing
to co-operate on pursuing hackers.
The additional funding for cyber
security programmes would need to be
approved by the Republican-controlled
Congress, which has already said it will
not consider some elements of the
administration’s budget for 2017.
The centrepiece of the new initiative
is a $3.1bn fund to upgrade computer
systems at various agencies of the fed-
eral government, some of which are
decades old.
“It is no secret that too often govern-
ment IT is like an Atari game in an Xbox
world,” Mr Obama said in the Wall
Street Journal yesterday.
“The Social Security Administration
uses systems and code from the 1960s.
No successful business could operate
this way.”
The federal government has been try-
ing to improve its computer systems for
more than a decade to deal with cyber-
threats, but US officials said the new
plan represented a conclusion that the
sort of incremental changes made in the
past were not sufficient to provide the
necessary level of security.
A new federal chief information
officer will also be appointed.
“The cyber threat is outpacing our
efforts,” said Michael Daniel, the White
House co-ordinator for cyber security
issues.
US officials said the federal govern-
ment wanted to do more to attract cyber
professionals to work for it, including
offering scholarships.
The White House said it would launch
a campaign to encourage people to
boost their online security by adopting
extra procedures such as fingerprint ID.
Speaking at a hearing yesterday,
James Clapper, the director of national
intelligence, said that Russia and China
had the “most sophisticated” cyber pro-
grammes.
“China continues cyber espionage
against the United States,” he said.
“Whether China’s commitment of last
September moderates its economic
espionage remains to be seen.”
During Chinese President Xi Jinping’s
visit to Washington in September, the
two governments agreed that “neither
the US nor the Chinese government will
conduct or knowingly support cyber-
enabled theft of intellectual property,
including trade secrets or other confi-
dential business information for com-
mercial advantage”.
4 ★ FINANCIAL TIMES Wednesday 10 February 2016

INTERNATIONAL

Presidential election Financial crisis

Bloomberg says he has eye on White House US justice

Billionaire considers
independent campaign
after ‘banal’ debating
OLIVER RALPH — LONDON
DEMETRI SEVASTOPULO — NEW
HAMPSHIRE
MATTHEW GARRAHAN — NEW YORK
Michael Bloomberg, the billionaire
media owner and former New York
mayor, has said for the first time that he
is considering a run for US president, a
move that would dramatically reshape
the 2016 race for the White House.
Speaking to the Financial Times, the
founder of the eponymous financial
information group criticised the quality
of debate in the presidential contest. He
said he was “looking at all the options”
when asked whether he was considering
putting his name forward.
“I find the level of discourse and dis-
cussion distressingly banal and an out-
rage and an insult to the voters,” Mr
Bloomberg said, adding that the US pub-
lic deserved “a lot better”.
His comments follow a New York
Times report last month that said he
had told advisers to draft a plan for a run
as an independent that could see him
spend $1bn of his estimated $39bn for-
tune. The first confirmation by Mr
Bloomberg, who has considered run-
ning for the Oval Office in previous elec-
tions, comes as Donald Trump, the
bombastic billionaire running a popu-
list campaign, dominates the Republi-
can race. In the Democratic race, Bernie
Sanders, the self-declared socialist sena-
tor from Vermont, is against Hillary
Clinton, former secretary of state.
Mr Bloomberg said he would need to
start putting his name on ballots across
the US at the beginning of March. “I’m
listening to what candidates are saying
Investor concerns
Companies urged to reveal
climate change impact
Michael Bloomberg has urged
companies to explain more clearly how
climate change affects them as a way
of attracting investors and staff.
As chairman of the global Task
Force on Climate-Related Financial
Disclosures, launched at the Paris
climate change summit in December,
his comments will add to the
pressure on companies to
better explain the impact
of environmental
changes.
Last week Larry Fink,
chief executive of
BlackRock, wrote in a
letter to chief
executives that
Africa. Economic transformation
and what the primary voters appear to
be doing,” he said.
Many experts believe Mr Bloomberg
would help the Republican nominee by
drawing more support from Democrats
over Republicans because of his liberal
stance on issues such as gun control and
the environment. Highlighting the steep
climb he would probably face, a poll by
his own news organisation and the Des
generating sustainable returns over
time required a sharper focus on
environmental and social factors.
Mr Bloomberg (pictured) told the
Financial Times that better disclosure
would create a competitive instinct
among companies when it came to their
position on environmental issues.
“One of the things you find today
when you interview prospective
employees who have choices,
they want to know what you are
doing about the environment. It’s a
competitive advantage when
recruiting when you can say
‘this is what our company
is doing to save the
planet’.”
The task force plans to
produce guidelines that
companies can follow to
create better, more
standardised
Moines Register before the Iowa cau-
cuses found only 9 per cent of Republi-
cans had a favourable view of him, while
17 per cent of likely Democratic voters
in the state had a favourable opinion.
Mr Trump has said he would be “very
happy” if Mr Bloomberg entered, while
Mr Sanders has attacked the idea, say-
ing it would confirm the US was moving
away from democracy to oligarchy.
information on their exposure to
climate change for investors, credit
rating agencies, insurers and others.
“From an investment point of view, if
you can measure it, you can then
manage it,” Mr Bloomberg added.
The task force’s guidelines will be
voluntary, but the organisers hope
take-up will be so strong that corporate
laggards feel compelled to join in.
“Big institutional investors care about
the companies they are investing in, in
terms of how acceptable that company
is to the people they work for,” he said.
Mr Bloomberg is joined by Mary
Schapiro, former chairman of the US
Securities and Exchange Commission,
who said: “Investors are desperate for
this information. They are actively
seeking out clear and honest and
comparable data about climate risk so
they can make decisions about where
to allocate their capital.” Oliver Ralph
The strong challenge by Mr Sanders
raises the chances that the Democratic
nominee will not be chosen by early
March, the point at which Mr Bloomb-
erg would need to make his decision.
While experts believe an independent
would struggle in a system heavily
skewed to favour the two main parties,
the 2016 race has already proved the
danger of accepting conventional wis-
dom. A year ago, most experts predicted
the race would see Mrs Clinton face Jeb
Bush, former Republican governor of
Florida, or Scott Walker, the Wisconsin
governor. But Mr Walker dropped out
early and Mr Bush is struggling to save
his campaign.
The campaign of Republican con-
tender Ted Cruz welcomed the possible
entry of Mr Bloomberg. Spokesman
Rick Tyler said: “Please run.”
At a Sanders rally in Derry, New
Hampshire, ahead of the state’s prima-
ries, supporters said his entry was
unlikely to change their vote. Christo-
pher Anderson, who described himself
an independent voter, said: “There’s not
much difference between him and Hil-
lary — they’re all in bed with Wall Street
and big corporations.” James Coll, 43, a
teacher from New York, added: “If he
runs as an independent, how would he
govern after getting support from Dem-
ocrats and Republicans?”
Additional reporting by Sebastian Payne in
Derry, New Hampshire
department
urged to act
against senior
bankers
BEN MCLANNAHAN — NEW YORK
Phil Angelides uncovered evidence of
widespread fraud and corruption in
the US mortgage market as chairman
of the commission that produced the
government report on the global finan-
cial crisis. Five years on, he is asking the
Department of Justice why it has yet to
call any senior bank executives to
account.
Since his report appeared in February
2011, America’s biggest banks have paid
tens of billions of dollars in fines for mis-
conduct in the packaging and sale of
mortgage-backed securities, while the
DoJ has gone after thousands of borrow-
ers, brokers and appraisers for lying on
mortgage applications. But no senior
bank executive has been charged with
wrongdoing. In a letter to Loretta Lynch,
US attorney-general, Mr Angelides has
challenged the DoJ to take action before
the 10-year statute of limitation expires.
“I ask a simple question: how could
the banks have engaged in such massive
misconduct and wrongdoing without a
single individual being involved? In a
sense, it’s the immaculate corruption,”
he told the FT. “It defies common sense,
and the people of America know this.”
The campaign by Mr Angelides, a
former state treasurer of California,
comes as reform of big banks is occupy-

Deadly protests challenge change in Ethiopia ing centre stage in the US presidential
election, with candidates on both sides
accusing rivals of having too-strong ties
to Wall Street. Hillary Clinton, the
Democratic frontrunner under fire for
accepting millions of dollars from banks
Soaring land prices, graft and in speaking fees, has said she will
plans to expand the capital push for stronger enforcement, holding
individuals — rather than their compa-
have left farmers fearful nies — accountable for misconduct.

WILLIAM WALLIS — ADDIS ABABA

A dispute that started over a football

field has become one of the biggest chal-
lenges to the Ethiopian state since the
end of the civil war a quarter of a cen-
tury ago.
When local officials expropriated the
school pitch for developers, students
took to the streets of Ginchi, a town
80km from Addis Ababa, the capital.
Their protest was swiftly put down.
But the incident was symptomatic of a
wider collision in one of Africa’s fastest-
growing economies as the government
seeks to transform a mainly agrarian
society through industrialisation, com-
mercial farming and urbanisation.
The Ginchi protest was the first spark
in an outpouring of opposition to local
and federal government in which at
least 140 people died between Novem-
ber and last month, according to human
rights groups. The protests spread
across Oromia state, home to millions of
subsistence farmers from the Oromo,
the largest group in Ethiopia’s federa-
tion of ethnic nationalities.
Their anger was directed at local gov-
ernments affiliated with the Ethiopian
People’s Revolutionary Democratic
Front (which with its allies controls all
547 seats in parliament) because of per-
ceived corruption plaguing land deals as
speculators surf rising property prices
in towns around the capital.
At the same time they accuse the fed-
eral government of riding roughshod
over local sensitivities with a plan to
extend administration of overcrowded
Addis Ababa into Oromia, which sur-
rounds the capital.
“The master plan is about taking Oro-
mia land and expanding Addis. It will
create job opportunities but not for the
farmers because their land is being
taken,” says a labourer in the satellite
town of Sululta.
Sululta, where factories and housing
developments encroach on traditional
farmland, was one of about 30 Oromo
towns that were the scene of mass pro-
tests in December. Peasant farmers
pouring down on horseback from the
A truck left hills to join protesting students were
burnt out after met with tear gas and bullets. Elsewhere
protests in police stations and symbols of the state
Holonkomi were attacked. In some isolated inci-
town, Oromia, in dents so were private businesses.
December. At “They are giving permission [to
least 140 people build] for the people who are rich but
have died in they are not giving permission for poor
demonstrations people,” said a farmer near the town of
between Chancho. He had been unable to obtain
November and a permit to build a house for his son on
last month in his barley plot, and had one mud con-
Ethiopia, struction torn down near a cement
according to plant. Another farmer said he was given
human rights tiny compensation when forced to sur-
groups render land to officials who sold it on.
Tiksa Negeri/Reuters
Such parochial grievances conflate
with broader frustration among the
Oromo at the perceived dominance in
federal institutions of the Tigrayan eth-
nic group. Oromos make up about 40
per cent of Ethiopia’s 90m population,
Tigrayans, who spearheaded the 1991
revolution, about 6 per cent.
“This is a popular uprising against
political marginalisation, non-repre-
sentation and corruption,” says Merera
Gudo, head of the opposition Oromo
Federalist Congress and one of the few
senior members of his party at liberty.
The government a month ago shelved
the blueprint to expand Addis. Since
then an uneasy calm policed by security
forces has settled over the region.
But the episode has exposed a funda-
mental contradiction between the fed-
eral state as enshrined in the constitu-
tion and the reality of centralised,
authoritarian power.
“The master plan was intended to co-
ordinate planning between Addis and
satellite towns . . . Infrastructure would
be developed, bottlenecks in housing
addressed and the dynamic of the econ-
omy maintained,” says Arkebe Oqubay,
a minister and former Addis mayor who
acknowledges there was insufficient
consultation. “It left room for misinter-
pretation and proper explanation has
not been done,” he adds.
Abel Belete, a political analyst in
Addis, says it was unprecedented for
Ethiopian authorities to back off in this
way under popular pressure. “It is a sign
of weakness,” he says.
Despite the climbdown, tensions
remain, with the population appearing
cowed rather than persuaded.
“Thinking for the people and thinking
for the country are very different. You
can stamp on the people and still pro-
mote the country,” says a young Oromo
‘You can professional who was afraid to speak
openly for fear of arrest.
stamp on Ethiopia’s semi-authoritarian govern-
the people ment has fostered some of the fastest
economic growth in Africa while resist-
and still ing liberal market orthodoxy and giving
promote the state a central role in development.
It is an experiment keenly watched by
the other African governments more con-
country’ strained by democratic process.
‘It is the immaculate
corruption. It defies
common sense’
Phil Angelides
Ms Lynch, too, has taken a tougher
line since succeeding Eric Holder last
April, signalling in September that she
wanted to go after individuals, rather
than corporate entities. A batch of new
rules, issued in a memo to federal prose-
cutors around the country, were seen as
a tacit acknowledgment that the DoJ
under President Barack Obama had
been too lenient on executives involved
in the financial meltdown and other cor-
porate scandals.
Yesterday, the DoJ confirmed it had
received the letter from Mr Angelides.
Mr Angelides said that his Financial
Crisis Inquiry Commission had turned
over evidence to the DoJ of potential
wrongdoing in 2010. According to
reports by Clayton, a Connecticut-based
consultancy hired by more than 20 big
banks, nearly one in three mortgages it
sampled from January 2006 to June
2007 failed to meet the lender’s stated
standards. That did not stop the banks
bundling the loans into securities then
selling them on to investors.
“Someone conducted this behaviour,
someone approved this behaviour, and I
think what is required is a bottom-to-
top inquiry at each of these institutions
as to who knew what, and who sanc-
tioned this material representation,”
said Mr Angelides.
“Frankly, the small fry, the mice have
been prosecuted but not yet one lion.
And it breeds a great amount of cyni-
cism and anger about the nature of our
judicial system.”

US corporate giving

Technology entrepreneurs cut philanthropic donations amid debate on gifts to charity

STEPHEN FOLEY AND JENNIFER BISSELL
NEW YORK
The elite of the US technology industry
cut their philanthropic donations in
2015 as a debate raged about how,
when and how much they should give
to charity.
A drop in giving by tech entrepreneurs
is among the most notable features of
the latest Philanthropy 50, a ranking of
the most generous donors in the US, as
calculated by the Chronicle of Philan-
thropy.
It means that the richest individuals
from the worlds of finance and invest-
ment gave more money than their peers
in technology, reversing the situation in
2014, which was a boom year for Silicon
Valley.
Google co-founders Larry Page and
Sergey Brin, Facebook investor Sean
Parker and former Microsoft chief exec-
utive Steve Ballmer fell off the list in
2015, while Bill Gates, WhatsApp co-
founder Jan Koum and Salesforce chief
executive Marc Benioff all gave less.
The lower total last year — the top 50
donors gave $7bn, compared with
$10.2bn in 2014 — means that there has
been little change at the top of the list of
the 21st century’s most generous indi-
viduals.
According to a Financial Times analy-
sis of Chronicle of Philanthropy data,
that list is still topped by Warren Buf-
fett, who has given $46.6bn since 2000,
$36.1bn of it to the Bill & Melinda Gates
Foundation in 2006.
An appearance in the top 50 in a given
year may depend on the date of a single
large gift or a transfer of stock to a foun-
dation, which can be timed to maximise
the tax breaks given by the US govern-
ment to encourage philanthropy. Foun-
dations will later put the money towards
a donor’s favoured causes over many
years.
Mark Zuckerberg, the founder of
Facebook, has appeared on the list in
2010, 2012 and 2013. Last November, he
said that over time he would dedicate 99
per cent of his Facebook wealth to
“advance human potential and promote
equality for all children”, but he would
be doing so through a limited liability
corporation rather than by endowing a
foundation. He would also give money
to for-profit organisations that have a
social mission, as well as charities.
“It gets unclear about what is deemed
‘philanthropy’, except for how the tax
code defines it,” said Kimberly Dasher
Tripp, a philanthropy consultant in San
Francisco, “but the big money is just
barely getting started”.
“I would not infer from the list that
millennials are less generous,” said Mike
Kosnitzky, a partner at law firm Boies,
Schiller & Flexner in Miami.
“They don’t give for the sake of giving,
they want to change the world and they
believe you can get a bigger bang for
your buck than going through the nor-
mal philanthropic channels, by backing
for-profit activities, or by keeping their
powder dry until there are better oppor-
tunities.”
In an interview with the FT last year,
Mr Buffett said the speed with which
today’s tech entrepreneurs can become
rich ought to encourage them to begin
their philanthropy earlier, and with
greater ambition.
Since 2000, the amount given by indi-
viduals from the tech sector who made
the Philanthropy 50 list has now
reached $33bn. Those from the worlds
of finance and investing have given
$82bn over the same period.
Wednesday 10 February 2016 ★ FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Wednesday 10 February 2016

INTERNATIONAL

Asylum seekers Intelligence services

EU urges Athens to improve refugee care Silicon Valley

Brussels hopes to make it
easier for states to send
migrants back to Greece
DUNCAN ROBINSON AND ALEX BARKER
BRUSSELS
Brussels will press Athens to improve
conditions for asylum seekers in the
hope of making it easier for other EU
member states to send migrants back to
Greece.
The European Commission will today
set out a list of measures that it expects
the Greeks to take to bring their facili-
ties in line with international standards.
The recommendations are part of a
broader report on the bloc’s efforts to
respond to the migration crisis.
They are likely to stir further resent-
ment in Athens, where officials are
already fuming about the burden that
the crisis has placed on them and the
lack of support from their EU partners.
A key point of contention is the EU’s
Dublin regulation, which requires the
first member state where refugees
arrive to register them and accept their
applications for asylum.
In theory, Dublin allows for asylum
seekers who later turn up elsewhere in
the bloc to be deported back to the EU
country where they first arrived and
were processed. But deportations to
Greece have been effectively banned
since 2011 when the European Court of
Human Rights ruled that Greece’s asy-
lum system was “degrading”.
This was followed by a ruling by the
European Court of Justice in Luxem-
bourg, which forbade member states
Eurozone. Monetary loosening
from sending people back to countries
where they might face “inhuman” or
“degrading” treatment.
Greece’s de facto exclusion from the
Dublin rules has thrown the system into
disarray, with migrants passing through
While acknowledging
progress, ‘much remains
to be done’ — in particular
on reception facilities
Greece unregistered and then making
their way to the heart of Europe.
The commission will call on Greece to
improve its reception facilities for asy-
lum seekers after Athens struggled to
cope with an influx of nearly 1m people
since the start of 2015.
The plan comes ahead of another
crunch summit on the crisis next week
in Brussels. EU leaders will call on coun-
tries at the EU’s external border, such as
Greece and Italy, to refuse entry to peo-
ple who have not made an asylum claim
“despite having had the opportunity to
do so”, according to draft conclusions
from the meeting.
Senior EU officials see the EU summit
as a last chance to address the flaws in
the bloc’s migration strategy, and set in
motion the preparations for a plan B if
more drastic measures to halt the flow
of migrants is required this spring.
While acknowledging some progress
in the processing and registering of
migrants in Greece and Italy, the draft
says “much remains to be done” — in
particular on reception facilities.
More generally, the draft conclusions
for next week’s summit of EU leaders
note that flows of migrants into Greece
“remain much too high” and require
“further, decisive efforts”.
The draft also highlights the need to
advance “tailor-made packages of
incentives” for countries accepting
returns of failed asylum seekers.
Prime Minister Alexis Tsipras has
already complained that EU plans to
build more migrant-processing centres
in his country risks making Greece a
“black box” for refugees who will
become trapped on their way to the
heart of Europe.
Some suspect that the commission’s
latest move is intended to heap further
pressure on Athens in the larger battle
over migration policy. “I am reading this
in a political way. It is a way of threaten-
ing Greece,” said one policy analyst.
faces push
to force open
UK data
encryption
MURAD AHMED, SAM JONES
AND KATE ALLEN — LONDON
Britain’s intelligence services have
warned the world’s largest technology
companies they will press ahead with
plans to force them to crack open the
encrypted private communications of
their customers, according to several
people familiar with the talks.
Silicon Valley executives complain
there is a growing gap between the Brit-
ish government’s public stance that it
will not “undermine the security of peo-
ple’s data” using new legislation and the
private position of the country’s spies
and law enforcement agencies.
Yesterday, MPs sitting on the House of
Commons intelligence and security

Fear for lenders over deeper negative rates
Economists say ECB policy
has led investors into bonds
at the expense of equities
CLAIRE JONES — FRANKFURT
This year’s rout of European bank
stocks has raised concern about how far
below zero the European Central Bank
can cut interest rates without inflicting
too much damage on lenders’ profits.
The pledge by Mario Draghi, ECB
president, in late January to “review and
possibly reconsider” his central bank’s
policy stance ratcheted up expectations
of further loosening. In recent weeks,
more action has become a near cer-
tainty as a host of factors have conspired
to darken the economic mood in
Europe.
The diminishing prospect of an immi-
nent rate rise in the US has strengthened
the euro against the dollar. A stronger
currency makes the ECB’s task of hitting
its inflation target of just below 2 per
cent more difficult as it lowers the cost
of goods imported into the region. Mar-
ket expectations of the ECB hitting its
target five years from now have weak-
ened, while inflation looks set to dip
back into negative territory in the com-
ing months.
A sharp, unexpected fall in German
industrial output in December and
weak trade figures have highlighted the
risk that the eurozone’s recovery may
not be as strong as economic surveys
have suggested. Analysts expect Fri-
day’s GDP figures to show growth failed
to pick up in the final quarter of last
year. Unchanged growth of 0.3 per cent
is the average forecast.
“Europe’s not in a recession, but
expectations about how strong the
recovery is need to come back to reality.
Growth isn’t as strong as Europeans
think it is,” said Richard Barwell, an
economist at BNP Paribas Investment
Partners. “They still have plenty of
ammunition left to fire, but there is an
argument to say that the ECB can’t do
much more by cutting rates.”
The deposit rate charged on banks’
reserves parked in the coffers of the ECB
has, along with quantitative easing,
become one of the most important
pillars of eurozone monetary policy.
In December, the deposit rate was
lowered to minus 0.3 per cent and
another cut of at least 10 basis points is
tipped for March.
Darkening Negative deposit rates are supposed
economic mood: to compliment QE by forcing banks to
negative rates seek out riskier lending opportunities
are viewed as and assets to compensate for losses on
one of the most their interest rate margin. This so-called
effective ways to “portfolio rebalancing effect” helps spur
weaken the euro growth by providing funds to credit-
— Krisztian Bocsi/Bloomberg
starved parts of the region and lowering
the cost of borrowing for riskier sover-
eigns and companies. Negative rates are
also viewed as one of the most effective
ways to weaken the euro.
Nevertheless, views among policy-
makers on how low rates should fall are
mixed. Minutes of the ECB’s December
vote show some of the policymakers
who opposed further asset purchases
under QE would have supported a
deeper 20 basis-point cut in the deposit
rate, to minus 0.4 per cent.
But policymakers have also expressed
concern about the impact of negative
rates on banks’ profitability. Lenders
have been reluctant to pass on the costs
of negative rates to customers and have
taken almost all of the hit.
Research by the Bank for Interna-
tional Settlements, the Basel-based cen-
tral bankers’ bank, suggests the impact
on profitability becomes more drastic
over time as short-term benefits, such as
lower rates of loan defaults, diminish.
The recent dip in eurozone banks’
shares partly reflects fears over the
impact of further rate cuts. Deutsche
Bank, one of the lenders worst affected
by the fall in bank stocks, has argued
that rather than prompting banks to
take on more risk, negative rates have
had the opposite effect by pushing
investors into bonds at the expense of
equities.
“In light of recent developments, this
topic of negative rates and banks’ profit-
ability certainly seems to be at the fore-
front of investors’ minds,” said Nick
‘Europe’s Matthews of Nomura. “Some policy-
makers clearly think there is room to
not in a cut rates. But there may be some nerv-
recession, ousness about going more negative.”
Serious discussions among the gov-
but erning council about what the ECB will
expectations do on March 10 are unlikely to begin
until later this month. One option is for
about how the ECB to follow the Bank of Japan and
strong the introduce a tiered deposit rate system to
protect banks from losing money on
recovery is most of their reserves. That would, how-
need to ever, reduce pressure on banks to invest
in riskier assets.
come back “It’s not an easy situation, that’s for
to reality’ sure,” said Dirk Schumacher, an econo-
mist at Goldman Sachs. “You could
introduce a tiered rate system, but then
you are potentially undermining the
portfolio rebalancing effect. It’s hard to
say what the final conclusion will be.”
Editorial Comment page 8
Deutsche Bank page 15
committee said the government’s draft
investigatory powers bill was too inva-
sive. The proposed law attempts to
replace the communication data bill,
dubbed by critics as the “snoopers’ char-
ter” and ditched in the last parliament.
Dominic Grieve, a ruling Conservative
MP, said: “We had expected to find uni-
versal privacy protections applied con-
sistently throughout . . . Instead, the
draft bill adopts a rather piecemeal
approach, which lacks clarity and
undermines the importance of the safe-
guards associated with these powers.”
Tomorrow a parliamentary commit-
tee scrutinising the bill will issue its
findings. But there is growing anger
among Silicon Valley groups over pro-
posals to update the UK’s spying regime
for the digital age. The companies
believe the bill will dangerously weaken
the security of private messages and
leave millions of customers exposed to
attacks by cybercriminals, a claim the
security services reject. The companies
say the bill will encourage other nations
to adopt similar legislation.
Messaging products including Apple’s
iMessage and Facebook’s WhatsApp
feature “end-to-end encryption” that
makes it hard for third parties to inter-
cept information being transmitted.
Tech groups say it is impossible for the
companies themselves to retrieve the
content of these messages.
Many in Whitehall have been frus-
trated by the public declarations of tech
companies but in private say the gov-
ernment is confident it will be able to
seal an arrangement to meet its require-
ments. Resisting the need for UK spies
to have access to data, even with a rele-
vant warrant, was a “theological mat-
ter” for tech companies, said one senior
British intelligence official.
The issue on encryption has grown in
importance to Silicon Valley groups try-
ing to regain the trust of customers.
These companies have been damaged
by revelations from National Security
Agency whistleblower Edward Snow-
den that US and British security services
can access the internal networks of large
technology groups. UK government offi-
cials said that after a period of hostility
following a public rebuke by Robert
Hannigan, director of the intelligence
unit GCHQ, in November 2014, govern-
ment and the tech industry were now
working productively and closely.
But industry executives have grown
concerned after meetings with security
services in which GCHQ and MI5, the
security service, expressed an intention
to use clauses in the proposed law that
relate to “the removal of electronic pro-
tection applied by a relevant operator to
any communications or data”.

Political scandal Energy crises

Gloves off over Madrid puppeteers’ ‘glorification of terrorism’
TOBIAS BUCK — MADRID
The work of a radical glove puppet
theatre has triggered a bewildering
political scandal in Madrid — and
sparked a furious debate over artistic
freedom in Spain and the competence
of the capital’s new administration.
The two puppeteers at the centre of the
affair were arrested after staging a street
performance of their work, The Witch
and Don Cristóbal, as part of Madrid’s
official Carnival programme. According
to court documents, the play features a
string of violent and provocative scenes
— including the hanging of a judge and
the rape and murder of a nun (whose
puppet is stabbed to death with a cruci-
fix). In one scene, a puppet holds up a
sign that refers to Eta, the Basque mili-
tant group, which killed more than 800
people in its decades-long campaign.
Paid for and promoted by the town
hall, the production was billed in the
official programme as adequate for all
ages — and was apparently attended by
a crowd of children with their parents.
A Madrid judge ordered the two men’s
detention on Saturday, saying their con-
duct could constitute “glorification of
terrorism” — a crime under Spanish law.
They have been in prison ever since,
prompting an outcry from civil liberty
activists, actors and leftwing politicians.
On Twitter, supporters have spread the
hashtag “Je suis titiritero” — echoing the
message of solidarity that was used
widely on social media after the shoot-
ing attack on French satirical magazine
Charlie Hebdo. Titiritero is the Spanish
word for puppeteer.
The seemingly local controversy has
drawn in national party leaders other-
wise consumed by the task of forming a
government after an inconclusive
December election and weeks of fruit-
less negotiations.
Pablo Iglesias, leader of the anti-aus-
terity Podemos movement, was one of
several high-profile figures to condemn
the judicial response. “It is absurd that
in a democratic country someone can
find himself in jail for a work of theatre,”
he said on Monday. “This is like throw-
ing Dario Fo [the Italian playwright and
Nobel Prize winner] in prison.”
In political terms, the puppet scandal
appears to have dealt a particularly
harsh blow to Manuela Carmena, a vet-
eran leftwing leader who was elected
mayor of Madrid last year as part of a
broader surge by non-traditional par-
ties. She apologised for the staging of the
play, which she described as a “grave
error”, and promised a thorough inves-
Performers at the carnival, where
the puppeteers staged their work
tigation. The town hall did not know
about the nature of the spectacle at the
time “but it should have”, she added.
Ms Carmena came to office promising
to end the capital’s obsession with grand
projects — such as a string of failed bids
to host the summer Olympics — and
to focus on “the politics of the small”.
Yet her administration has courted
controversy precisely over the handling
of seemingly small issues. The mayor’s
conservative opponents voiced anger at
this year’s traditional procession of the
three kings, a fixture of the Madrid
Christmas calendar that regularly
draws tens of thousands of spectators.
Critics dismissed last month’s parade as
too modern, while bemoaning the dis-
appearance of traditional elements such
as camels and other live animals.
Dismissed with bemusement by Ms
Carmena, the controversy was swiftly
followed by a separate — and more seri-
ous — polemic in connection with the
mayor’s campaign to remove the last
remaining streets signs and monuments
dedicated to the Franco regime.
Brussels moves to boost gas security
CHRISTIAN OLIVER — BRUSSELS
HENRY FOY — WARSAW
Brussels will seek to compel EU coun-
tries to supply gas to stricken neigh-
bours in times of emergency as part of
proposals to bolster the energy secu-
rity of nations dependent on Russia.
Interruptions of Russian gas supplies in
2006 and 2009 revealed critical weak-
nesses in eastern Europe in particular,
which the European Commission is
seeking to address with a package of
proposals to improve the bloc’s ability to
cope with disruptions. The proposals
will be signed off in Brussels today and
formally released next week.
Commission officials have concluded
that countries were vulnerable in 2006
and 2009 because they had low gas
stocks and were poorly connected to
neighbours. As a result, their responses
to the Russian supply cuts tended to be
national, rather than European.
Under the new proposals, Europe
would be divided into nine zones. The
nations within those zones would be
obliged to work together to plan how to
build stocks and infrastructure that
would enable gas to flow between them
more easily.
The commission would oversee the
drafting of these crisis plans, and also
wants controversial powers to monitor
and vet gas contracts before they are
signed by member states, to ensure fair
supplies.
“The security of supply in the EU can-
not be sufficiently achieved by member
states alone and can . . . better be
achieved at a union level,” the commis-
sion stated in a draft of the plan seen by
the Financial Times.
In the most vulnerable eastern
regions, Germany would form a group
with Poland, the Czech Republic and
Slovakia. Hungary would join Austria,
Italy, Slovenia and Croatia. Bulgaria,
Greece and Romania would merge into a
Balkan group. Finland would draw up
emergency plans with the Baltic states.
Poland in particular fears how Russia
may use its dominance of supplies to
bring political pressure on EU members.
Wednesday 10 February 2016
UK newspaper groups, fearing that online revenues might never offset lost print sales, are re-evaluating
what they produce and the role of third-party platforms such as Google to promote content.
R
ebekah Brooks looked to
have completed a staggering
comeback. The former tab-
loid editor had not only been
acquitted of all criminal
charges of phone-hacking and pay-
ments to public officials, but she had
also managed to resume her career in
September where she left off: as chief
executive of Rupert Murdoch’s UK
newspaper operations.
There was just one hitch. In the four
years Ms Brooks had been away, the
newspaper business itself had changed
dramatically. Even for an industry
accustomed to financial beatings, 2015
was brutal. Print advertising in the UK
fell by £112m, according to estimates
from Enders Analysis, equivalent to half
Fleet Street’s aggregate profits, or the
combined wage bills of the Times, Sun-
day Times and the Daily Telegraph.
Even Sky, the satellite broadcaster in
which Mr Murdoch’s 21st Century Fox is
the biggest shareholder, has moved mil-
lions of pounds’ worth of advertising
from print to websites like Facebook.
“This is a seismic shift away from print
media,” says Douglas McCabe, an ana-
lyst at Enders.
Spending on national newspaper
advertising has fallen by one-third since
2010 to £880m. Online prospects have
also darkened. Adblockers, smart-
phones and new social media platforms
are tearing holes in digital strategies.
During her first stint running the Sun
and the Times, Ms Brooks set out a plan
to make journalism “an economically
exciting proposition”. Readers of both
papers would pay for online access. It
was “a defining moment”, she said in
2010. “This is just the start.”
While she was away, that plan largely
failed. The Sun spentmillions on Pre-
mier League football rights, but few of
its print readers became online sub-
Changing platforms
UK advertising revenue (£bn)
Total internet revenue
(PCs and mobiles)*
National newspapers,
print revenue
2000 05 10 16
Source: Enders Analysis 2015 and 2016 are estimates
scribers. So one of Ms Brooks ’ first deci-
sions on returning was to dismantle the
Sun’s paywall. Instead, she would take
aim at MailOnline, whose mix of celeb-
rities, gossip and sensationalism has
made it the world’s most popular Eng-
lish-language paper site. But the pros-
pect of a Sun-MailOnline war has been
dimmed by the fickle economics of
online news.
For decades, newspaper executives
have pointed to a “digital tipping point”,
when revenues from online would offset
lost print sales. Now some in the indus-
try are questioning whether there will
ever be a profitable future.
At least two titles — the Guardian and
the Independent — remain lossmaking.
Profits at the market leaders — the Daily
Telegraph, the Sun and Daily Mail —
have fallen 40 per cent in the past dec-
ade. Newspapers are also facing compe-
tition from digital players, such as Buzz-
Feed and Quartz.
“The industry needs to make a clear
admission that the historic model for
producing newspapers is bust,” says
David Montgomery, former editor of the
now defunct tabloid News of the World
and until last year chief executive of
regional publisher Local World. “Many
in the industry are living in denial.”
Disappointed pioneers
Britain’s newspaper industry is arguably
the most exciting and competitive in the
world. Its titles sell nearly 7m print cop-
ies a day — still strong though down
from 13m 10 years ago — operate two of
the world’s most popular newspaper
websites and often lead the way in inves-
tigations. In 2013 the Guardian pub-
lished leaks by the whistleblower
Edward Snowden; a year later the Sun-
day Times revealed corruption at Fifa,
which contributed to the ousting of its
president Sepp Blatter.
Financial worries are hardly new.
By Henry Mance
Rewriting the story
Read all about it The shift from print to online
Below: Rebekah Brooks, News UK
chief executive, facing another
3.5 ‘defining moment’ for her papers’
online operations in 2016
3.0
2.5
2.0
1.5
1.0
0.5
0
US newspapers
Bezos joins the search
for new digital model
The best news in US newspapers in
recent years may be Amazon founder
Jeff Bezos’s purchase of the
Washington Post in 2013. On top of the
$250m he paid for the Post, he has
pumped millions into the search for a
sustainable business model.
The Post has hired staff, invested in
digital operations and used its
Amazon connection to offer free
subscriptions to members of the
online retailer’s Prime programme.
The strategy appears to be paying
off: traffic has tripled since the sale
★ FINANCIAL TIMES
FT BIG READ. FLEET STREET
Phone-hacking, the illegal accessing of
voicemails by the News of the World and
Sunday Mirror, was in part triggered by
the need for big stories to drive sales.
What is new is the disappointing
results of once-vaunted online experi-
ments. MailOnline, with 13m browsers a
day, last year missed its revenue target
for the first time, and is still recording
undisclosed losses. In January the
Guardian, a digital pioneer, announced
an annual loss of about £50m and said it
would cut costs by 20 per cent over
three years. In a fresh sign of the strain,
parent group News Corp has promised
to squeeze overheads at the Sun and the
Times, while the Daily Telegraph has
told staff to expect an “extensive strate-
gic review”.
In some countries, publishers have
changed course to claw back the reve-
nue lost to online. In 2003, 93 per cent of
UK property advertising went to news-
papers; a decade later the proportion
had halved. European newspaper
groups, principally Germany’s Axel
Springer and Norway’s Schibsted,
responded by acquiring classified prop-
erty websites.
UK groups failed to follow suit. The
Guardian turned Auto Trader, a car
magazine, into a successful online por-
tal but then sold it to boost its cash
reserves. Only the Daily Mail has diver-
sified, using cash flows from its newspa-
pers to build up a business information
and events business. Today Trinity Mir-
ror, the UK’s largest newspaper pub-
lisher, has a market capitalisation of
£430m. Rightmove, the country’s big-
gest property site, is eight times bigger.
Instead of diversifying, the industry
became locked in a debate over whether
to introduce paywalls — the approach
taken by the Financial Times, the Sun
and the Times — or to seek huge global
audiences for advertising, like the Daily
Mail and the Guardian.
and passed the New York Times in
unique website visitors for the first time
last year. Mr Bezos, right, said the Post
was on its way to becoming “the new
paper of record”.
The Post does not disclose
whether its expanded
audience is translating into
higher digital subscription
and advertising revenues.
But the experiences of its US
competitors who still report
financial results suggest the road
to a robust digital business model is not
easy or quick. Like the Post, the New York
Times and Wall Street Journal charge
digital readers for access. The Times
counts nearly 1.1m digital subscribers and
the Journal 819,000. But print advertising
“People were still thinking in terms of
single solutions, they were thinking
ahead from the past,” says George
Brock, a professor of journalism at Lon-
don’s City University.
The Sun found that charging for con-
tent robbed it of readers and influence.
It still sells 1.8m copies a day, but only
225,000 people signed up for digital
subscriptions in a market where only 6
per cent of Britons say they are willing to
pay for news online, according to Reu-
ters Institute. The Times and Sunday
Times still operate strict paywalls, and
although their published accounts sug-
gest they are breaking even, this rests on
whether certain costs, including rent
and printing, are absorbed by their loss-
making parent company.
Relying on online advertising, worth a
total £3bn in the UK last year according
‘The effort that has gone
into [online] has always had
one eye on the past. I think
we’re getting to the end of
that road now’
to Enders, has also proved problematic.
Traffic is expensive — MailOnline
employs 800 staff — and returns can be
limited. Readers are increasingly using
mobile phones, where ads are small and
often unseen. Almost one in five users
have installed adblocking software.
Despite growth in the US, MailOnline
remains lossmaking, and its rival Trin-
ity Mirror, publisher of the Daily Mirror,
is adding just 13p of digital advertising
for every £1 of print revenue it loses.
“Advertising is not going to save you,”
says one executive at a publisher which
operates a free-to-access website.
Others are trying out sponsored con-
tent — bespoke articles and videos cre-
still overshadows online revenues at
both. “Although our digital revenue is
growing strongly, we continue to feel
the impact of declines in parts of
our print business,” New York
Times editor Dean Baquet
told staff last week.
The Times aims to
double total digital
revenue from advertising
and subscriptions to
$800m by 2020, and has
pushed into branded content.
News Corp, owner of the Wall
Street Journal, saw revenue and profit
shrink last quarter, with ad sales
dropping 12 per cent thanks to
declines in print.
Shannon Bond in New York
Daily average unique readers
Web circulation, Dec 2015
MailOnline
13.2m
theguardian.com
7.8m
Trinity Mirror Group - Digital
5.8m
Telegraph
4.0m
Mirror Group Nationals
4.0m
The Independent
2.8m
The Sun
1.5m
express.co.uk
1.1m
Source: ABC
ated for brands, as pioneered by Buzz-
Feed. But even that has proved disap-
pointing for Fleet Street. Two industry
executives say that such native advertis-
ing is expensive to produce, and often
fails to generate the size of audience that
many brands demand.
Time to experiment
With no single answer, a conservative
industry is starting to consolidate and
experiment. Trinity Mirror has bought
control of regional newspaper group
Local World for £187m in an attempt to
reduce costs and offer advertisers
nationwide coverage. The Sun is launch-
ing an online betting site. The Guardian
is expanding a membership scheme
under which readers can pay between
£5 and £60 a month to support the
paper and attend events.
For the Sun and the Guardian, the
strategy is clear: traffic alone may not
generate revenues, but it may provide a
captive audience for ecommerce and
even micropayments, where readers
pay for access to individual articles.
“The print business model hasn’t fun-
damentally changed: it is cover price
plus advertising,” says Paul Zwillen-
berg, head of Boston Consulting Group’s
media practice. “Digital is constantly
evolving.”
Newspapers are also losing their
direct digital route to their readers.
“Five years ago news groups were trying
to ignore Facebook and Google. Now
they are facing the inevitable,” says Will
Perrin, director of internet consultancy
Talk About Local. “In the next five years
it will be all about distribution — what is
your relationship like with Facebook
and Google?”
Apple and Facebook have launched
news portals, while Google is developing
pages to make news sites more readable
on mobile devices. (The FT is participat-
ing in Apple News, Facebook Instant
Articles and also supports the Google
initiative.) In the short term, those plat-
forms are promising publishers the
opportunity to reach more readers and
sell more advertising. There is even a
possibility that Facebook, Apple and
others could pay news publishers for the
right to carry their content, just as cable
providers pay for particular channels.
“In time you will see quality content
that drives engagement able to com-
mand the internet equivalent of pence
per [TV] subs,” says Mr Zwillenberg.
It would make newspapers reliant on
a third party platform to decide whether
to display their content, and share reve-
nue with them. For Fleet Street, which
five years ago was investing in paywalls,
homepages and apps, this was not part
of the plan.
While identifying new revenue
streams is crucial, some argue newspa-
7
Year-on-year
change (%)
7.7
33.0
22.4
16.9
13.8
33.3
n.a.
44.6
pers need to change fundamentally the
content that they produce.
Newspapers deliver bundles of arti-
cles, with all major topics included.
Their websites attempt to perform a
similar service. But online readers
behave differently, accessing articles
through social media sites and flitting
between different sources. The rewards
go to those who have the best content or
who distribute it most effectively, not
those who produce a bit of everything.
“The cost of being second or third
[best in a particular area] is now much
higher,” says Mr Brock of City Univer-
sity. “The Guardian is competing in
areas where it is not the leader . . . The
brutal question is, does that really pay?”
The implication is that Fleet Street’s
large newsroom may be unsustainable.
The Times had 454 editorial staff at last
count, The Sun 525, the Daily Telegraph
662 and The Guardian, following expan-
sion overseas, 925. “There won’t be any-
where like as many 500-person news-
rooms in five years’ time, let alone 10
years’ time,” says Mr McCabe.
Despite two decades of upheaval,
Fleet Street has remained intact. No
large newspaper has closed for financial
reasons; several have benefited from
their owners’ largesse. But there are
signs of change.
When appointing Ms Brooks, Mr
Murdoch made clear that performance
at the Sun must improve. Alexander
and Evgeny Lebedev, the Russian busi-
nessmen who bought the Independent
in 2010, have tried to sell the title after
amassing more than £50m in losses.
The Guardian is spending even more
than its £750m investment fund can
bear. The Telegraph remains lucrative,
but can no longer produce the £60m in
annual operating profit sought by its
owners, the Barclay brothers.
As a result newspapers may finally
have to re-evaluate what they produce.
“The effort that has gone into [online]
has always had one eye on the past,” says
Mr Montgomery. “I think we’re getting
to the end of that road now.”
Barriers to entry On her return
Rebekah Brooks dismantled the Sun’s
paywall to compete with MailOnline
Platform problems Online operations
are being pared back at the Times, Mail
and Guardian as revenues disappoint
Third party threat? Google, Facebook
and Apple offer publishers a chance to
reach more readers and sell more ads
8 ★
WEDNESDAY 10 FEBRUARY 2016
Central bankers peer
into uncharted waters
The Bank of Japan should not fear cutting interest rates even further
The boost to Japanese stocks and to glo-
bal equities — and the weakening of the
yen — that followed the Bank of Japan’s
surprise move to negative interest rates
last month is swiftly unravelling. On
Tuesday, Japanese share prices dived
and the yen rose again, as the “risk-off”
trade drove money back into safe
assets and currencies.
In this context, it is more important
than ever that the Bank of Japan should
signal its determination to use all avail-
able tools to raise growth and inflation.
It was unfortunate that there was dis-
sent at the BoJ’s policy board meeting
on January 29 at which the decision to
go negative was carried by five votes to
four. Dissenters expressed concern
that competition among central banks
to push rates below zero would ensue.
The experiments with negative
interest rates conducted by a number
of central banks trying to ward off
deflation — Switzerland, the eurozone
and Denmark among them — have yet
to provide definitive conclusions. Yet
the exercise has demonstrated that
going below the zero lower bound is
more practicable than most econo-
mists had thought. While the BoJ can
push ahead on the quantitative easing
front as well as — or even in preference
to — cutting interest rates further,
it should not be constrained by fear
that others will follow it into negative
territory.
The widespread belief among econo-
mists that it was impossible to cut
interest rates far below zero, because
people would simply hold cash, has
taken some damaging blows. Central
banks have worked out ways of deter-
ring commercial banks from holding
cash, including in effect charging them
if they exchange it for central bank
reserves.
The deleterious impact on commer-
cial banks and other financial institu-
tions of negative rates can be consider-
Osborne can afford to
wait for a budget surplus
This is no time for fresh austerity in pursuit of an arbitrary target
George Osborne has staked his political
future on restoring order to Britain’s
public finances. His own measure of
success will be delivering on a pledge —
enshrined in legislation — to return the
budget to surplus by the end of the cur-
rent parliament and keep it there. The
first official figures showing whether
the chancellor has hit this target should
appear just a few days before the next
general election. The latest independ-
ent assessment of his fiscal plans, by
the Institute of Fiscal Studies, suggests
that the numbers will not add up.
One big risk to the government’s
forecasts is that persistently low infla-
tion will depress wage growth, leading
to lower income tax receipts. The
recent falls in equity markets could cut
a further £2bn from capital gains tax
receipts. Mr Osborne will struggle to
find significant new sources of revenue
to fill the shortfall: the IFS notes that he
already needs to fund promised cuts to
income tax worth some £8bn a year.
The UK chancellor, who already
boasts of the biggest fiscal consolida-
tion by any leading economy in recent
history, will also find it difficult to
squeeze spending any further. Many
economists doubt his ability to drive
through the cuts already announced,
given the demands of a growing, ageing
population and the widening gap
between public and private sector pay.
The plan to achieve a surplus by 2020
relies on non-health spending falling to
its lowest level in more than 60 years as
a share of national income.
Despite these strains, the UK econ-
omy remains in reasonable shape.
The pace of the recovery has been
disappointing, but consumers are
finally enjoying higher real income,
businesses are investing and UK
exporters are less exposed to the down-
turn in emerging markets than some of
their rivals. However, the gloom per-
meating the world economy means the
able: several Japanese money market
funds have closed their doors to new
savers. Yet in Denmark, which was a
pioneer in negative rates, commercial
banks have found ways to push the
costs of negative rates on to customers.
More generally, there seems to be a
misconception that if central banks all
loosen monetary policy it is perforce a
zero-sum game. It is certainly true that
the exchange rate is one of the channels
of monetary policy, and that one coun-
try’s depreciation is by definition its
trading partners’ appreciation.
But, particularly in large and rela-
tively closed economies like the euro-
zone and Japan, the currency is by no
means the only channel. If a global eas-
ing of monetary conditions is appropri-
ate, then the fact that central banks
enter into apparent competition with
each other is a feature, not a bug. The
serial departure of currencies from the
gold standard in the 1930s was widely
regarded at the time as a collectively
destructive game of sauve qui peut. In
fact, it loosened global monetary policy
and cushioned at least a little the
impact of the Great Depression.
Negative interest rates are not a fleet-
ing phenomenon. The growing pile of
zero- or negative-yield bond yields
around the world is not evidence that
central banks are introducing distor-
tions in financial markets. It primarily
shows that many economies are strug-
gling for sustained growth and stable
and positive inflation.
The BoJ is right to try to push infla-
tion back towards its target. It has yet
to exhaust the possibilities of QE, and
expanding that programme might be a
better first step to boosting growth and
modest inflation. But it should not be
constrained in cutting rates further by
the fear that other central banks will
follow it into as yet uncharted waters.
The experiment with going negative is
far from concluded.
risks are very much to the downside.
Mr Osborne argues that global turbu-
lence makes it even more important to
run a budget surplus as a precaution
against “tough times”. However, with
the cost of public sector borrowing at
record lows in much of the developed
world, there is no evidence that the
markets would penalise the chancellor
if he took longer to hit his fiscal targets.
Nor would the political cost be high,
at least in the short term. An opposi-
tion that has castigated the chancellor
for excessive austerity cannot com-
plain if he eases up; and cabinet col-
leagues are hardly likely to criticise.
There is one tax increase that Mr
Osborne should implement — the infla-
tion-linked rise in fuel duty that he has
cancelled every year since 2011. There
is no reason to defer this when the low
oil price should mitigate the impact.
However, this is no time to launch a
fresh burst of fiscal austerity. Nor
should Mr Osborne be tempted to
resort to gimmicks that flatter the defi-
cit, in pursuit of an arbitrary target.
The main downside of tying fiscal pol-
icy to such a precise timetable is that it
creates incentives to postpone worth-
while investments, and to introduce
tax policies that raise money now while
deferring costs to a later date. Mr
Osborne must not let this skew his
planned reforms of pensions taxation.
Instead, he should keep fiscal policy
on a steady course and be ready to
explain any delay in hitting his self-im-
posed target to parliament. He has
form in this area already: last year,
after revising his plans on tax credits,
he was forced to admit that he would
breach his cap on welfare spending.
As the IFS points out, small changes
in the underlying forecasts can make a
big difference to the deficit projections.
There is still plenty of time for Mr
Osborne to put the public finances
back on course by the next election.
FINANCIAL TIMES
Think carefully before denationalising citizens
Sir, The French government’s current
bid to make it legally possible to strip
citizenship from individuals suspected
of terrorism — even if they are French
citizens from birth — should ring alarm
bells across Europe, and beyond
(“French parliament debates terror
reforms”, FT.com, February 5).
First of all, citizenship is a special
status, and is enshrined in the Universal
Declaration of Human Rights. To make
it legal, much less mandated, for
individuals to lose their citizenship, is
to reduce it to just another immigration
status, one apparently contingent on
maintaining a clean criminal record.
Big notes remain part of
the Swiss business model
Sir, Gillian Tett cites factors that
explain the persistence of cash (“The
benefits of scrapping cash”, February
5). Prominent among the more
unsavoury fans of old-fashioned
currency are tax-evaders and
terrorists. With respect to these, she
remarks that high-denomination bills
facilitate criminal activity, and that
their withdrawal from circulation
might curtail extralegal transactions.
I’m in complete agreement with Ms
Tett, but I wouldn’t hold my breath. I
don’t think Switzerland’s big, purple
SFr1,000 bill is going to disappear any
time soon. This rich country, secure in
its historic neutrality, and famous for
its discretion in matters financial, finds
it in its best interest to encourage
circulation of its currency. Issuance of
paper money, especially in high
denominations, remains an important
feature of the Confederation’s business
model.
Other wealthy nations, like the US
and Canada, have long since
discontinued high-value notes; and Ms
Tett mentions possible restrictions on
the €500 bill. Trouble is, these
initiatives just serve to make the
SFr1,000 more attractive still.
Individuals contemplating large
transactions in which they prefer to
maintain anonymity might want to
wait till April. That’s when the Swiss
National Bank presses will begin rolling
out a brand new design for its currency,
including the four-digit banknote of
choice for mobsters and terrorists.
Harvey Clark Greisman
Wilmington, DE, US
Day in August 1968 that an Zika threat demands
unbeatable record was set a global response
Sir, Adrian Wykes is, of course, correct:
“For sheer genius, no one comes close
to Sobers” (Letters, February 8). Sir
Garfield St Aubrun Sobers is peerless, if
only because of the ultimate and, by
definition, unbreakable record of six
sixes in an over for Nottinghamshire
against the unfortunate Malcolm Nash,
August 31 1968. We likely shall not see
his equal again.
David C Speedie
Montclair, NJ, US
Time to introduce ‘sobers’
to the English language
Sir, Gary Sobers (letter from Adrian
Wykes, February 8) showed the world
that it is easier to drive a ball straight,
head still, bat sufficiently accelerated
to meet the oncoming swinging ball,
than to write about it. Sports writers
The French
capital needs
to acquire a
head for heights
Paris
Notebook
by Adam Thomson
Letters
There’s been toing-and-froing in France
as to whether the proposed new
measures would apply only to those
with dual citizenship (thus
discriminating against those with
immigrant backgrounds, who are
disproportionately likely to fall into this
category). If applied with perfect
equality to any and all French citizens,
those who didn’t have a second
nationality would be rendered stateless
— a clear violation of international law.
Either way, key legal principles are
undermined.
What will happen to those
denationalised? If they become
‘Our new communication satellite
is picking up a lot of condemnation
of us’
scour the dictionary, the thesaurus,
encyclopedias and sports columns to
find words to describe Sobers bat, bowl
fast and slow, field and throw. They all
have failed.
It is simpler to introduce “sobers” to
the English language: as a noun (“Dale
Stein bowls a sobers”); as an adjective
“Shikar Dhawan is copying the sobers
drive”; as an interjection (“ Oh, sobers!
That was a magnificent catch!”); as an
adverb (“The ball was hit sobersly”).
When the One Great Scorer comes to
write against your name, he marks not
that you won or lost but how sobersly
you played the game.
Krishnamachar Sreenivasan
Distinguished Professor of Information
Technology,
Central Institute of Technology,
Kokrajhar, Assam, India
Sir, The Ebola virus was only just set to
rest for a while and, as Anjana Ahuja
pointed out, another — Zika — is
already challenging humanity
(“Scientists hunt for Zika’s link to the
lost children of the Americas”, January
27). The two viruses are vastly
different in their modes of action and
transmission, but they threaten
remarkably similar governance and
leadership risks. Can our global
institutions respond better?
The World Health Organisation is
right to have sounded a fresh global
alarm. Zika infections and related
health conditions are arising as the
next pandemic, possibly infecting as
many as 4m people by the end of this
year. Both it and Ebola highlight the
immense continuing health burdens
and consequences of infectious
diseases, even while non-
For generations, Paris’s wide
boulevards and elegant balconied
buildings have dazzled tourists and
given the French capital one of the
most beautiful and recognisable faces
of any city in the world.
But when it comes to being
competitive in the 21st century, the
legacy of Georges-Eugène
Haussmann, who oversaw the
rebuilding of the city between
1853 and 1870, is one big pain
in the backside.
Whatever you think of London’s
rapidly changing skyline, it has played
a critical role in keeping the city in
step with the modern world. The UK’s
capital has more than 20 projects of
50 storeys or more, either under way
or in the pipeline, that will provide
homes for billionaires and global
corporations alike.
In Paris, things are a little different.
Before Christmas, Unibail-Rodamco,
Europe’s largest listed commercial
property company, applied for a
permit to start construction of a 180-
metre tall glass triangle of offices,
hotel and convention centres designed
by Herzog & de Meuron.
If it goes ahead, as expected, the
project, designed so as to cast almost
no shadow on other buildings in the
15th arrondissement, will be the city’s
first skyscraper in more than 40
years.
It is easy to understand the lack of
modernisation: Paris’s architecture is
more uniform than that of London
and the city is considerably smaller,
offering fewer opportunities for
stateless and are physically in France,
they will be stuck in France. Even if
they have dual nationality, is the
country of their other (remaining)
citizenship likely to accept them? They
may never have lived outside France
and will be convicted terrorists, who
were French citizens until conviction.
Many states either formally decline to
accept, or simply do not co-operate
with, deportations of their (supposed)
nationals.
Julia Harrington-Reddy
Head, Equality and Inclusion,
Open Society Justice Initiative,
New York, NY, US
communicable diseases such as
diabetes, cancer and heart disease
continue to rise. More than 25m people
are living with HIV, more than 2bn
people are infected with tuberculosis,
and over 500m people die each year of
malaria. And there are no vaccines for
the vast majority of infectious diseases
that disproportionately affect the poor
in developing countries.
The effects of infectious diseases
extend across generations, limiting the
ability of children, families,
communities and nations to thrive.
They present major obstacles to
economic growth, health security and
human development. And they can
leap across national frontiers,
threatening poorer and richer countries
alike. They require a global response.
At the height of the 2014 Ebola crisis,
donors pledged nearly $8bn. When the
virus faded, so did the funding. That
was a deadly mistake. Nationally,
countries need to develop their health
systems to provide effective
prevention, surveillance and control.
Globally, the World Health
Organisation needs to improve the
quality and speed of response. Too
often, it is not clear who is in charge.
Finally, meetings need to be followed
by sustained funding and action. A
virus-by-virus approach results in
insufficient support for infectious
diseases that disproportionately kill
the poor in developing countries. The
upcoming G7 Summit in May 2016,
hosted by Japan, presents world
leaders with the opportunity to take
action. Its Global Health Working
Group recommends that G7
governments should double their
investment — from $3.2bn to $6.4bn a
year — in research and development on
new vaccines, diagnostics and
medicines.
Keizo Takemi
Member, House of Councillors,
National Diet of Japan
Chairman, Special Mission Committee on
Global Health Strategy, LDP
‘The people’ will be able
to game their QE system
Sir, The problem with Jeremy
Beckwith’s proposal (Letters, February
9) lies in how people react to the
proposed QE bank accounts. Those
already in debt can indeed pay it off —
thus enabling them to take on more,
back to their previous level. Those
without debt can anticipate by taking
on debt that they will then be able to
pay off, and are thus enabled to spend
the additional funds as they see fit.
Dr William Dixon
City University,
London EC1, UK
developers. But even by the
most conservative standards,
Paris has proved remarkably resistant
to change.
Just ask Bernard Arnault: the
billionaire behind luxury
conglomerate LVMH spent more than
a decade fighting in court for his
planned redevelopment of the La
Samaritaine department store.
Its proposed Rue de Rivoli façade,
a shimmering glass curtain, did not go
down well with either residents or
preservation groups. Mr Arnault
eventually got his way but only by
appealing in the Conseil d’État, the
country’s ultimate authority for
administrative matters.
Meanwhile, the last skyscraper
Paris inaugurated was the 1973 Tour
Montparnasse, the unloved 210m
block that dominates the city’s
southern skyline. Bad experiences like
that have made it even harder to push
for new projects.
Over a recent lunch in
Unibail-Rodamco’s “model room”, a
space in its Paris headquarters filled
with exquisite skyscraper designs
converted into 3D form from the
sketchpads of the world’s
best-known architects, I got a sense of
just how hard it is.
“You see that?” Christophe Cuvillier,
the company’s chief executive, asked
me, pointing to an intriguing model
of a Renzo Piano design for an island
in the Seine. “It’ll never be built.
Planning permission is impossible.”
He points to another model near by.
“Nor that one,” he says. “Nor that,”
Wednesday 10 February 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
No convincing evidence
thatinflationfostersgrowth
Sir, Mario Draghi has again stressed the
central bank mantra that low inflation
should be combated by even more
expansionary monetary policy (“ECB
chief vows to beat low inflation”,
February 5). Like many, he laments the
experience of Japan where slightly
negative inflation is said to have caused
lower demand and growth because
people then postpone consumption.
But to explain lower consumption,
demography suffices. Japan’s
population is the oldest among
developed countries. Older people
consume less. Moreover, households
saved less during this period. Deferral
of expenditures should have made for
an increase in savings.
Incorrect stories develop a life of their
own if continuously repeated; thus the
story of Japan’s lost decade. The reality
is different. Per member of the working-
age population, Japan’s growth has
trumped that of many of its peers:
between 2000 and 2007 this cumulative
growth was 15 per cent in Japan, or
double that of the US (8 per cent).
Eurozone countries where austerity
has paid off also belie this story. Today
Spain’s year-on-year CPI inflation is
-0.3 per cent, while its year-on-year
retail sales and gross domestic product
have risen 2.3 per cent and 3.5 per cent.
For Ireland, these percentages are 0.1,
4.6 and 7.0 respectively.
Historically there is no convincing
evidence that inflation fosters growth.
That suggests that other motives are
behind the ECB’s aim of about 2 per
cent inflation, such as depreciation of
the euro, despite its current account
surplus, and the greater ease to
engineer negative real interest rates.
Attempts to counter deflation with
more unconventional monetary policy
could backfire. Present deflationary
tendencies are the unavoidable
consequence of mountains of debt that
central banks helped to create. More
QE and even more negative interest
rates will further increase debt. That
will feed deflation. Renewed ECB
action is highly likely to be
counterproductive.
Dr Frank Boll
Director,
Ecofis NV/SA,
Rotselaar, Belgium
Progressive ideas find a
practical counterbalance
Sir, John Kay’s column “The danger of
political groupthink in our
universities” (February 3) is off the
mark. The issue at hand is not whether
institutions of higher education in the
US, at least, largely reflect left-liberal
values, but whether they have all that
much long-term influence on the
thoughts and behaviour of graduates.
My 40 years of lecturing at American
and, to a lesser degree, German
universities would suggest that such
exposure to progressive ideas is easily
counterbalanced by more practical
courses in business, law, and applied
technology. My former students have
frequently expressed their gratitude to
me for the slightly left-of-centre
courses that I have taught, which they
then follow with a request to write a
letter in support of their application to
schools that lead to moneymaking
careers in the business/
legal/technology sectors. Relax,
Professor Kay.
John Starrels
Chevy Chase, MD, US
waving a finger at yet another.
“Paris is very protective, which
is great for charm and cultural history
but it has the immediate consequence
of leaving no new space.”
The strict codes — bar
some exceptions, buildings cannot
exceed 31 metres — have left the city
woefully short of good offices. So
much so that Mr Cuvillier says that, if
a company of 700 employees or more
wanted to settle in Paris in new or
refurbished premises, it would
be able to choose from just one
of two sites.
Why should any of this matter
when the city has La Défense? The
area, beyond the capital’s
western border, has for years acted as
Paris’s safety valve for office space and
it is now Europe’s largest business
district.
One reason, argues Jean-Louis
Missika, the deputy mayor who is in
charge of urban planning, is that a city
cannot stay relevant if all it does is
preserve the old.
Paris, he insists, “has to renew itself
century after century”. As part of that
effort, the mayor’s office this month
unveiled the winning projects of its
“Reinvent Paris” competition to
develop 23 sites.
Unibail-Rodamco’s Mr Cuvillier
agrees. “Paris needs to be a great place
to work and do business, not just a
great tourist destination,” he says.
“A capital city that is attractive
is a country that is attractive.”
adam.thomson@ft.com
Wednesday 10 February 2016
OPINION
Dmitri
Trenin
T
he Syrian army’s success at
Aleppo was something Rus-
sia had been waiting for
since the start of its military
intervention last Septem-
ber. Russian air strikes were to soften up
the diverse groups opposed to President
Bashar al-Assad — Isis and others — and
create conditions for Damascus to start
a counter-offensive.
Until recently, however, there has
been a disconnect between Russian
activity in the air and the near-inability
of Mr Assad’s forces to exploit it on the
ground. Now this gap has been bridged.
We should not expect a quick victory for
Damascus, though Aleppo opposition
The battle over
Brexit matters
to the world
ECONOMICS
Martin
Wolf
A
letter from Donald Tusk,
the president of the Euro-
pean Council, outlines a
deal on UK membership of
the EU to be agreed at the
meeting of heads of government on Feb-
ruary 18 and 19. There it will compete
for attention with the even more vexed
question of immigration. Maybe that
will make it easier for the other mem-
bers to accept the concessions — albeit
limited — offered to David Cameron, the
UK prime minister. But will they be
enough to sway his forthcoming refer-
endum in favour of staying in?
If anyone were convinced that the UK
should leave the EU, this deal would not
change their mind. It proposes a mecha-
nism to protect the position of members
who are not part of the economic and
monetary union. But, notes Mr Tusk,
this “cannot constitute a veto nor delay
urgent decisions”. Once again, the heads
of government are to “set out our com-
mitment to increase efforts to enhance
competitiveness”. The council has been
committed to a similarly vague rhetori-
cal aim at least since the launch of its
Lisbon agenda in 2000.
On sovereignty, the declaration recog-
nises that the UK “is not committed to
further political integration”. Few can
have imagined it was. Finally, on bene-
fits for migrants, the draft proposes a
“safeguard mechanism”, but one the UK
would be unable to implement unilater-
ally and whose details are yet to be
decided.
In all, Mr Cameron has laboured to
produce a mouse. His premise has been
that the UK has a place only in a
OPINION
Risto
Penttila
M
ainstream politicians
across Europe face seri-
ous challenges from pop-
ulist and xenophobic par-
ties. How should they
respond? One thing is certain: excluding
such parties from the political process
does not work; it only lends them more
support. Bringing them into the fold
makes more sense. The contrasting
experiences of Finland and Sweden bear
this out.
The anti-immigration, populist Swe-
den Democrats are on a roll. In an opin-
ion poll carried out shortly before
Christmas, 18.9 per cent of voters said
they intended to vote for the insurgent
Syria’s future lies in its neighbours’ hands
groups may invite others into Syria: the
Saudis and particularly the Turks. If this
happens, the war will be transformed
again. With the US, Russia and regional
powers directly involved, Syria can
become the first battleground in the glo-
bal competition for power and influence
that has restarted after a 25-year hiatus.
The consequences of such a develop-
ment are hard to predict. But these are
some of the questions that would surely
arise. Would Turkey invade with
ground troops to occupy the Kurdish-
held areas? Would it bomb the Syrian
army’s units? Would the Saudis attack
just Isis targets or Iranian and Hizbollah
formations, too? Would Iran send in
more troops? What would the US mili-
tary be doing? How would the Russians
respond if their Syrian allies came
under attack and sustained casualties?
What would be the Russian reaction to
the losses of their own at the hands of
the Turks? Would they open fire at the
“reformed EU”. Eurosceptics will argue
that, since the union is fundamentally
unreformed, the logic of his own posi-
tion is exit. They will be right.
Thus the negotiation has underlined
the obvious: either it makes sense for
the UK to stay in the EU as it is or it does
not. Maybe, the deal will make it easier
for waverers and careerists to choose
the former option. But it does not
change the intellectual arguments.
The background to the choice is also
uncomfortably clear. The UK is a semi-
detached member of the EU. The British
do not feel they need the union to
strengthen the legitimacy of their politi-
cal institutions. They have no interest in
joining the single currency. They (or, at
least, the English) are mostly reluctant
outsiders. That will not change.
At the same time, 44 per cent of UK
exports go to the EU, against 17 per cent
to the US. No less important, the politi-
cal stability and prosperity of the conti-
nent is (and always has been) a vital
British interest. We might sum up the
attitude as follows: “We do not want to
be in but we do not want to be out either.
So please make an EU we would like.”
The continental Europeans are also
torn on the British question. Given the
existential challenges the EU faces, the
last thing they need is protracted uncer-
tainty over the place of this reluctant
member. But it is hard to argue that the
union would be better off without its
second-largest economy and a country
with a long history of democratic stabil-
ity, close connections to the English-
speaking democracies, an effective
security establishment, a liberal atti-
tude to commerce and a global outlook.
This, then, is an inescapably awkward
relationship. But it has also been a work-
able one. That is why this referendum is
such an unnecessary risk, however
pressing the Eurosceptic threat may
have seemed to Mr Cameron’s hold over
power. If the vote is No, the country and
the EU will face at least a protracted
We should engage with xenophobes, not silence them
party in the 2018 general election. A
crackdown on the numbers of asylum
seekers trying to enter Sweden
announced by the centre-left govern-
ment in November reflects the extent to
which the Swedish Democrats have
shaken up the country’s politics.
In Finland, by contrast, the True
Finns, one of the first populist parties in
Europe to seize on voters’ anger over
eurozone bailouts, are struggling. The
difference? While Sweden’s mainstream
parties have refused to co-operate with
the Sweden Democrats, the True Finns
are part of a centre-right coalition gov-
ernment. The result? The more serious
the refugee crisis has become in Swe-
den, the more support the Sweden Dem-
ocrats have gained. The reverse is true
in Finland.
The different strategies of Finland
and Sweden have historical roots. Dur-
ing the cold war, the communists were
frequent members of the Finnish gov-
★ †
Comment
Turkish tanks and shoot down Turkish
fighter jets with the S-400 air defence
systems already in place after the inci-
dent in November in which a Russian
aircraft was shot down by a Turkish
F-16? Would Moscow arm the Kurds in
Turkey? Would any of this push Nato to
invoke Article 5 of the Washington
In the Middle East, it is
the regional players that
are at the forefront,
calling the shots
Treaty, which states that an attack on
one ally is an attack on all allies? Should
any of this happen, the entire global
strategic environment would change.
Syria today has been occasionally
compared to Spain in the 1930s. The
analogy is growing sharper. But the bit-
Open for business
Regulatory protection of incumbents*,
2013 (US 2008). Scale 0 (low) to 6 (high)
0 0.5 1.0 1.5
US
Japan
Canada
Germany
France
Italy
UK
* Indicator of exemptions from competition policy and of barriers to entry for companies
FT graphic Sources: ONS; OECD
period of uncertainty. If the vote is Yes,
but only marginally so, this uncertainty
might endure for years.
Eurosceptics challenge the judgment
that this has been a workable relation-
ship. They argue that the EU has
wrapped the UK economy in binding
red tape. Yet analyses by the OECD con-
sistently show that the UK economy is
among the least regulated of all its mem-
bers. The strong performance of the
UK’s labour market supports this con-
clusion.
Many also insist that the City of Lon-
don is stifled by regulation. Yet the
financial crisis suggests that the prob-
lem was far more one of permissive reg-
Yes, this is an awkward
relationship and, yes, a time
may come when it no longer
works. But that time is not now
ernment. As the saying has it: “It is bet-
ter to have them peeing out of the tent
from the inside than have them pee into
the tent from the outside.”
In Sweden, communists were never
welcomed into the government. Neither
were the Greens until recently. Finland,
on the other hand, was one of the first
Countries are trying to
integrate newcomers
while excluding many
of their own citizens
European countries to see the Greens
join a governing coalition in the early
1990s.
Different countries have divergent
political traditions. And different xeno-
phobic parties have different political
agendas. In many cases, giving them a
FINANCIAL TIMES
ter irony is that, at the end of January in
Geneva, a negotiating process began
that was aimed at bringing peace to
Syria after almost five years of the dev-
astating conflict.
Blaming events in Aleppo for the
breakdown of those talks misses the
point. There was no ceasefire agreed
beforehand. Had the rebels been able to
score a significant success against Mr
Assad, they would have probably
pressed ahead, too. The real issue
remains the unwillingness of regional
actors — Damascus and Tehran, Ankara
and Riyadh — to compromise.
The US and Russia have their own dif-
ferences, some of which led to actual
confrontation in important areas. Yet
they have managed to co-operate so far
over Syria, on the understanding that
neither party will be able to have all it
wants. The world, however, has changed
considerably since the cold war, when
Moscow and Washington could decide
Welcome to Britain
Employment protection laws 2013 UK net migration (000s)
(UK 2014). Scale 0 (low) to 6 (high)
Total
2.0 0 1.0 2.0 3.0 Non-EU citizens
Italy EU citizens
Germany UK citizens
France
Japan
UK
Canada
US
1975 80
ulation than the reverse. Many com-
plain, too, of the immigration from the
EU. Yet net immigration comes more
from non-EU countries, than from the
EU. (See charts.)
Nobody can credibly argue that EU
membership has been a significant
obstacle to UK prosperity. The main
obstacles — poor education and low
investment, for example — are home-
grown. It is conceivable that the EU
would become a significant obstacle in
future. In that case, the UK should leave.
But it is vastly premature to do so now.
At the same time, by participating in
the EU, the UK has a voice in the affairs
of its closest neighbours and, with them,
those of the world. Yes, outside the EU,
the UK (or maybe England alone) may
decide its own laws. But it will lose that
voice. The option of leaving the union
while seeking to enjoy the present
access to markets, even if it were feasi-
ble, would be the worst of both worlds:
EU rules without a voice in the EU. A
place in a coalition government will not
work. More important than electoral
tactics is the question of how we
approach people who hold views other
than our own.
The central paradox in European pol-
itics today is the following: on the one
hand, countries are attempting to inte-
grate newcomers from outside Europe
who often subscribe to quite alien politi-
cal values. On the other hand, politi-
cians exclude substantial numbers of
their own citizens for the same reason.
We welcome refugees, while telling
some of our compatriots to shut up.
Both groups — refugees and support-
ers of populist parties — include extrem-
ists and fanatics. We must not let the
irresponsible behaviour of the few col-
our our attitude to the many. I do not
claim to know what the supporters of
Marine Le Pen in France or Geert
Wilders in the Netherlands are like. But
I do know that a majority of the support-
for others and hold them accountable.
In the Middle East, it is the regional
actors that are at the forefront. They are
calling the shots — literally. And they are
yet to learn the fine art of co-operation
alongside confrontation.
The Middle East has entered a period
that will probably last a couple of dec-
ades, in which there will be little peace
and a lot of fighting. Outsiders will have
a limited role there, and often only a
limited understanding of what is going
on. Their prime responsibility is to work
for solutions, however imperfect, that
would save lives and create the condi-
tions for post-conflict coexistence.
Should they give up these efforts and
take sides in the conflict, Syria could
very easily become another Spain — a
warning that went unheeded and led to
a much bigger calamity.
The writer is director of the Carnegie Mos-
cow Center
2004 ‘EU 350
300
enlargement’
250
200
150
100
50
0 What matters for travel,
-50
-100
-150
90 2000 10 15
clean exit would be better. In a cam-
paign in which the Leave side is incapa-
ble of agreeing on alternatives, while the
Remain side need only point to a worka-
ble status quo, the latter should win.
The fact that the leaders of the main
political parties and much of big busi-
ness will be on the Remain side should
strengthen that probability.
Yet many people greatly desire to give
respectable opinion a good kicking.
That makes the outcome highly uncer-
tain. But it does not make it less impor-
tant. Yes, this is a difficult relationship
and, yes, a time may come when it no
longer works. That time is not now.
The UK needs a voice in Europe.
Europe also needs the UK to have
that voice. It is a relationship of the head
not of the heart. But it is still one very
much worth having. That is true for the
UK. It is also true for its partners and
allies.
martin.wolf@ft.com
ers of Timo Soini’s True Finns are
decent people. If we are willing to give
the benefit of the doubt to the newcom-
ers, we should be willing to do the same
for our own citizens.
Demonising your opponent is an age-
old strategy. It was applied during the
Thirty Years War by both sides. It was
used again during the cold war. And it is
being used now.
The solution to the threat of populism
is not to pretend that we agree with the
xenophobes. Rather, we should wel-
come them in the political process. As
long as they abide by the rules of an
open democratic society, we must
engage with them. If they go beyond the
pale, then we should beat them in elec-
tions. That is what European democ-
racy is all about. Right?
The writer is a former member of the Finn-
ish parliament and CEO of the Finland
Chamber of Commerce
9
Advantages of
dwelling
in a decent
time zone
BUSINESS
John
Kay
A
n extended trip to Asia and
Australasia demonstrates
the problems the world’s
different time zones pose
for business. People call
bright and early from an English morn-
ing, acknowledging only perfunctorily
that it is late evening in Sydney, that you
have already downed a glass or two of
Australian wine and that you would like
nothing more than to go to sleep.
It is widely recognised that part of
London’s competitive advantage in
financial services is derived from its
timezone. Not because the power of the
Royal Navy established Greenwich
Mean Time as the standard for the
world, but because the business day of
London overlaps with those of other glo-
bal financial markets.
At 9am GMT in London, it is 5pm in
Singapore and Hong Kong and 6pm in
Tokyo. Sydney is slightly less conven-
ient (as I have noticed) but in European
summer the difference reduces from 11
to a more palatable nine hours. And at
5pm in London, it is midday in New
York and 9am in San Francisco.
The maximum time difference easily
managed is between eight and nine
hours, so for every location there are
about seven time zones difficult to
access. In the case of London, to the
city’s good fortune, these time zones
span the Pacific Ocean, where not many
people live (sorry, New Zealand and
Hawaii).
Do the same exercise elsewhere and
the answer is less satisfactory. For
Tokyo, the area more than eight but
fewer than 16 time zones away covers
eastern America and western Europe. If
New York is the city that never sleeps,
perhaps it is because Asia is doing busi-
ness in the late evening and early morn-
ing of Eastern Standard Time. London’s
advantage is here to stay.
unlike finance, is that hardly
anyone lives south of the
equator (sorry, New Zealand)
I wondered if similar reasoning could
be applied to airport hubs. The maxi-
mum range of a modern commercial
jet is about 12,000km, and the circum-
ference of the earth is about 40,000km
— so you can fly nonstop from any loca-
tion to about 60 per cent of the earth’s
surface, just as you can talk business
in real time to a little more than 60 per
cent of possible locations. A good
location is one whose 60 per cent is well
chosen.
But there is a difference between the
finance problems and the aviation prob-
lems. While what matters for time zones
is longitude, this is less relevant to
travel. First-time flyers from London or
New York to Tokyo, where the aircraft
take polar routes, are often surprised
how short the flight is.
Yet what matters for finance is that
hardly anyone lives in the Pacific Ocean,
what matters for flight is that hardly
anyone lives in the southern hemi-
sphere (sorry, again, New Zealand but
almost 90 per cent of the population is
found north of the equator).
The admirable website, FreeMap-
Tools, enabled me to draw a radius
round any location. Despite the excel-
lence of equatorial Singapore’s airline
and airport, the city-state has limited
potential as a hub because the territory
that cannot easily be reached nonstop is
the American continent.
Singapore Airlines abandoned direct
flights to the US after failing to attract
enough premium business to make an
18-hour or so flight profitable, though it
announced plans last year to revive the
service. From New York, aircraft strug-
gle to reach southern Africa and, more
significantly, Southeast Asia.
But, from western Europe, Australia
and New Zealand are the only major
destinations out of reach. From the Gulf
you can get to almost everywhere. That
is why Dubai and London are among the
world’s busiest international airports.
At Sydney Airport they have just
called the flight to Dallas; confused pas-
sengers will land at about the same time
as they take off after 15 hours in the air.
And I am bound for Wellington, with an
almost unmanageable 13-hour time dif-
ference to London.
johnkay@johnkay.com
10 ★ FINANCIAL TIMES Wednesday 10 February 2016

BUSINESS LIFE

Last year I interviewed a man called
We are still in Jimmy whose job was to strip meat
from chickens. He worked in a British
the dark about factory but he did not work for the
factory. Rather, he worked for an
the new world employment agency that would text
him daily to tell him if he had a shift
of work the next day. He and the other agency
workers on site seemed to function as a
buffer, enabling the business to flex the
size of the workforce in response to the
daily fluctuations in demand.
When I spoke to Jimmy he was
panicking. The agency had given him
no work that day. If the same thing
happened tomorrow he would struggle
to pay his bills.
symposium in December on the future
of work, the common refrain was the
need for better data. To that end, US
statisticians are going to try to count
the number of contingent workers by
adding questions to their regular
nationwide survey of the labour force.
That is a good start, but better data
on the quantity of these jobs will not
necessarily tell us about their quality.
I discovered this when the UK’s
official statisticians tried to count the
number of people, like Jimmy, who had
“zero-hours” contracts, which do not
guarantee a minimum amount of work.
They published two estimates: 744,000
people (based on a worker survey) or
‘
I remember an email exchange with
my editor on the topic. “Curious to
know where [the] truth lies,” he wrote.
Let’s launch in . . .
I don’t think it’s possible to know, I
replied. “But Sarah,” he shot back, Sofia, Bulgaria
What
“our calling is to be seekers after
truth . . . !!” He had a point. Of course
everyone
there is no objective “truth” about
something so subjective, but the
wanted to quality of work in the 21st century is a
critical policy issue. It is a cop-out for
know was me to write “some people say x, other
how many people say y” and sign off with a
shrug.
workers We journalists will have to take our
were notebooks out of the office to dig up
better evidence about how, where and Alex Segre/Alamy

One of the first things you wonder
when you hear a story like this,
particularly if you are a journalist, is
whether it tells you something bigger
1.5m contracts (based on an employer
survey).
We learnt from the worker survey
that a fifth of people on zero-hours
insecure why work is changing. Population 1.2m (unofficial estimates reach 2m)
and how Statisticians could try harder too. I Estimated VC funding available €100m
chewed this over last week with Ed
many were Humpherson, head of enforcement at
Corporation tax rate 10% • Capital gains tax rate 10%

about the world of work. Is this sort of
arrangement rare or common? Is it
dying out or taking off?
These are surprisingly tough
questions to answer.
Most countries produce reliable
statistics on the number of people who
are employed and unemployed but
they find it harder to measure what
they call non-standard or contingent
work — arrangements such as Jimmy’s
where the employment relationship is
fractured, impermanent or unclear.
Sarah O’Connor These labels also apply to people
working in the “gig economy” and the
Onemployment “human cloud” of online taskers.
Many believe this sort of work is on
the rise, but the numbers we have are
patchy and ambiguous. Policymakers
are flailing around in the dark. When
the US Department of Labor hosted a
Entrepreneurs. Huw Gott, Will Beckett, Hawksmoor
contracts were full-time students and
two-fifths wished they had more hours.
The employer survey told us that big
companies used the contracts more
than small ones. These facts were
interesting but they danced
tantalisingly round the edges of the
question everyone really wanted
answered, which was how many of
those people were insecure and
unhappy, and how many were
perfectly satisfied with the
arrangement.
In the absence of decent information,
the debate polarised down predictable
lines. Left-wingers said zero-hours
contracts were exploitative. Right-
wingers said they gave workers the
flexibility they wanted. Journalists like
me quoted a few people from each side
and called it a day.
’
satisfied the UK Statistics Authority, the official
watchdog. He came up with an
interesting idea. Britain’s statisticians
could map their surveys of people’s
“wellbeing” against their labour
market data to shed some light on the
satisfaction and anxiety levels of
people in different types of
employment. It would be rough and
ready but at least it would be a start.
We need more information like this
to know when we should worry about
the new world of work and when we
should celebrate and facilitate it.
The debate will otherwise remain
static and superficial, and that will not
serve anyone well, least of all the
people it is meant to be about.
sarah.oconnor@ft.com
Twitter: @sarahoconnor_
Although Bulgaria’s
economic boom hit a wall in
2009, the tech sector is
growing and is the main
focus of the country’s start-
up activity, with the capital
Sofia at the centre.
The case for: The grey
communist-era cityscape is
beautified by golden
Orthodox domes, leafy parks
and the grandeur of the
surrounding mountains.
There are plenty of lively
bars and restaurants.
The talent pool is well-
educated, thanks to
Bulgaria’s tradition of
technical schooling. Wages
in the tech sector are
significantly lower than in
the US or the EU average,
says financial services
company Elana Trading.
The new Sofia Investment
Agency aims to make the
Local heroes: Airfare search
developer Vayant has raised
capital from Lufthansa;
Flipps Media has developed
an app that streams video
from mobiles to connected
devices. Software developer
Telerik was bought by
Progress Software for
$264m in 2014.
Sofia Tech Park is home to
Walltopia, one of the world’s
leading makers of climbing
walls — an example of a
Bulgarian start-up that has
acquired global clout.
Show me the money: The
start-up environment has
been boosted by the
establishment of two new
seed funds, Eleven and
LAUNCHub. Both are
backed by the EU’s Jeremie
funding initiative, which
allocated €20m to 200-plus
start-ups in 2011-14. These

A lot to chew on in the Big Apple

city “one of the coolest
places in Europe to start a
new business”, says director
Christian Petrov. In 2015, the
part state-funded Sofia Tech
Park was created to support
start-ups.
The English steakhouse The case against: With just
chain is taking its high- 7m people, Bulgaria is a
welfare, charcoal-cooked small market for Sofia —
although this does force
beef menu to New York, start-ups to think globally
writes Natalie Whittle from the outset. Impressive
by regional standards,
Sofia’s start-up scene is
supplement existing sources
such as Neveq Capital
Partners, and BlackPeak
Capital and Empower
Capital Fund, which have
also been supported by the
European Investment Fund.
Getting there: There are
direct flights to many
European cities on national
flag carriers and budget
airlines, but going further
afield often involves travel
through hubs such as
Frankfurt or Istanbul.

T
wo Englishmen are opening
a steakhouse in New York.
A brave move, one might
think, to serve sirloin in the
home of Keens, Peter Luger
and all the steakhouse elders whose
spartan wooden chairs, milk-glass
lamps and caramelising meat have
wafted so seductively into the psyche of
restaurateurs the world over.
Will Beckett and Huw Gott, founders
of London steakhouse company Hawks-
moor, were themselves initially unsure
about venturing across the Atlantic.
When Westfield Corporation, the mall
and retail group, invited them to open a
restaurant in New York “completely out
of the blue”, Mr Gott says, they were
taken aback by the scale of the task pro-
posed.
“We knew absolutely nothing about
how restaurants work in New York,” he
says, sitting with Mr Beckett in a half-
moon booth in the mahogany-panelled
Guildhall Hawksmoor, in the City of
London. This was the third of the five
Hawksmoors they have opened in Lon-
don over the past decade, with a Man-
chester outpost added last year. Hawks-
moor New York is set to open in 2017.
The site needed little introduction:
the new Richard Rogers-designed Three
World Trade Center, where Westfield
will run the retail, food and beverage
outlets. For the vast flagship restaurant
in Tower 3, Westfield wanted “some-
thing that didn’t exist already in New
York”, Mr Beckett says. Surely not
another steakhouse?
“New York doesn’t have a steak res-
taurant of our type,” he says. Hawks-
moor’s model is based on a menu of
high-welfare, grass-fed beef, cooked
over charcoal — rather than with the
more typical New York gas broiler; an
unstuffy ambience is key too, with good
beer and cocktails. All Hawksmoor beef
in the UK comes from The Ginger Pig
farms in North Yorkshire. For New York
they will look at nearby farms for non-
intensively reared livestock — “it felt
right to us that we find the best meat in
the US”.
“It’s exciting and your heart says, ‘Of
course I want to open a restaurant in
New York’ — but there’s a lot of work to
do . . . We hired a business consultancy
to look at whether it was plausible,” says
Mr Beckett. The Tower 3 restaurant has
330 covers and room for 100 in the bar;
Hawksmoor’s biggest London restaur-
ant, on Air Street, has 235 covers and 50
in the bar, and the site’s annual turnover
is less than £10m a year.
“The rent on the New York site is
more than our six English restaurants
put together, and for it to work it has to
be in the top 15 grossing restaurants in
the whole of New York,” Mr Beckett
says. The two founders exchange an
arched eyebrow across the table.
“We’re going to have to do $20m a
year for it to be an unequivocal success
. . . It’s obviously way more than break-
Huw Gott, right, ing even, but feels commensurate with
and Will the risk, which is not insignificant.”
Beckett: their In the year ended December 31 2014,
new Hawksmoor operating profit for the duo’s Underdog
restaurant at Group was £3.1m on turnover of
Three World £29.9m, up from £2.4m on £17.7m year
Trade Center on year. In 2013, it launched the first of
will represent a four Hawksmoor neighbourhood spin-
large increase in offs under the name Foxlow.
the business As they tot up more than 700 staff
Anna Gordon across the locations, both are relaxed, in
jeans and shirts, and neither acts obtru-
sively as if he owns the place — save for a
moment when Mr Gott leaps up to cor-
rect a waiter for replenishing a glass of
sparkling water with still.
In their
Best decision: “We had really great
own people who got involved — Nick
words Strangeway [drinks expert and cocktail
consultant], who helped set the tone,
then [wine buyer] Tim Gould as an
People, assistant bar manager, now operations
eBay, and manager; and Richard Turner [executive
taking risks chef]” — HG
Biggest mistake: “We had a pub The
Marquess Tavern in Canonbury [north
London], we just signed a lease and we
didn’t research it much. The next day I
googled the pub and the first article was
headlined ‘The pub from hell’” — HG
Biggest challenge: “[In 2015] we opened
in Manchester and a lot of people said
‘that doesn’t feel like the greatest of
ideas’, but if you do something good,
cities can cope with it” — WB
Executive tech: “Huw’s got a strange
obsession with eBay (our restaurants,
office and storage unit overflow with
stuff that we might use, but never will).
We are much more interested in
customer feedback than keeping track
of the business via figures” — WB
Mr Gott looks after the food side,
while Mr Beckett is responsible for the
“people stuff”: this includes the com-
petitive salaries and staff retention
Hawksmoor is known for. Mr Beckett
has said in the past that restaurant man-
agers should be paid as much as
“headteachers and doctors”.
Now 38, the two men met as 11-year-
olds at school in the south of England
city of St Albans, where Mr Gott’s par-
ents ran a café. Mr Beckett’s mother is
the wine writer Fiona Beckett, but
unlike Mr Gott, he did not have the res-
taurant bug, opting for postgraduate
study in 1970s Chilean protest music.
Mr Gott says: “I persuaded Will to
ditch his MA when I found an old Bengal
fried chicken [shop].” In 2003, they reo-
pened the chicken shop as a bar, the
Redchurch, and went on to run a pub,
The Marquess Tavern; both were later
sold. The breakthrough came when
they found an “old, failed Turkish res-
taurant” in Spitalfields, which became
the first Hawksmoor, named after the
18th-century architect Nicholas Hawks-
moor whose church towers over the
area. It had a tiny kitchen and an open
pit charcoal oven — “we looked at it and
thought, we can do Turkish or steak,”
says Mr Gott.
Mr Beckett is shrewd on what the two
have learnt in their improvised career.
“We signed the lease of [the first]
Hawksmoor without any idea of how we
were going to pay for it. Huw’s parents
had to remortgage their home.” But, he
adds: “Sometimes we came up with an
answer — one that people hadn’t come
up with before — that worked.” Looking
for a meat supplier, they decided to visit
farms because they did not know the
industry, which led to an interest in ani-
mal welfare and quality of meat: “It feels
to me normal that you have a close rela-
tionship with the people who rear the
cattle. Tim Wilson, who owns The Gin-
ger Pig, says we’re the only people who
go to his farm.”
Hawksmoor will hire about 200 peo-
ple in the US, where restaurant staff
roles differ from the UK, so “we need to
work out how to be a good employer in
New York”. Tipping is key. Danny
Meyer, the Shake Shack and Gramercy
Tavern restaurateur, who has offered
them advice, made headlines recently
by trialling a “no tips” rule to address
the growing imbalance between remu-
neration for front and back of house
staff. “We have the lovely benefit of see-
ing how it goes for him,” Mr Becket says.
As they are taking on a new lease in a
shell building, Westfield will support
them, but the investment — “a pretty
significant financial outlay” — comes
from revenue from the existing busi-
ness. Although they have borrowed
from banks, they have not raised money
to fund expansion since 2009.
However in 2013, Graphite Capital,
part-owner of the Groucho Club in Lon-
don, acquired 51 per cent of the busi-
ness. “Huw and I own a significant share
each,” says Mr Beckett, and senior staff
own the rest. The decision to partner
with Graphite was made over lunch, on
likeability as much as financial literacy;
“They’re not restaurateurs, they never
tell us how they think we should run the
restaurant, but they understand finance
and like a little bit of analysis,” Mr Beck-
ett notes wryly.
Mr Gott, who once spent a week
thinking about the perfect Scotch egg
recipe, claims to be “bad with numbers”
— “I had to admit in an induction that I
have to look at my pin number every
time I use my bank card”. Mr Beckett
looks shocked but his old friend is
untroubled: “It’s great we know each
other so well and trust each other — and
know what we’re not very good at.”
nowhere as developed as,
say, Berlin or Helsinki. Lead
times for company
development are long.
Alexander Sirakov, an
investment banker, warns
that while there are several
established successes, too
many new start-ups are
derivative rather than
innovative. Law firm Wolf
Thiess cautions that in
Bulgaria, ownership over IP
rights, including those for
software, can be licensed
but not sold, so start-ups
and investments must be
carefully structured.
Innovation to watch
Tapping an app to tip
LESLIE HOOK
It has become a Silicon
Valley cliché to describe
companies as an “Uber” for
their particular sector. But in
the case of Rubicon Global,
which bills itself as “Uber for
trash”, the epithet is not
misplaced.
The Atlanta-based
company offers commercial
waste collection at the tap of
an app, and has former Uber
executives as advisers.
The premise of Rubicon is
that its app links commercial
customers with independent
waste haulers on demand,
with the goal of cutting
costs for customers and
reducing landfill. This model
upends the system of
subscription-based services
run by the biggest US waste
companies, which are landfill
owners that make money by
filling up their own sites.
Independent haulers can be
more efficient at finding
alternatives such as
recycling or composting, and
under Rubicon pickups
occur only when needed.
Chief executive Nate
Morris says Rubicon uses an
What the locals say: “The
ecosystem is very vibrant,
inclusive and supportive; the
spirit of the place is ‘give
before you ask’,” says Daniel
Tomov, founding partner at
Eleven. “The historical
shortage of VC money here
means Bulgaria is now short
on experienced and fearless
executives and successful
repeat entrepreneurs to
back our start-up founders,”
says Pavel Ezekiev, partner
at VC fund Neveq.
Andrew MacDowall
Dreamstime
incentive system to reward
customers for keeping waste
out of landfills. “We believe
that the free market should
lead on the environment,” he
says. Regulation plays a role
too: if a city institutes a
measure such as banning
food waste from landfills,
Rubicon becomes more
profitable.
Rubicon’s diverse backers
include Goldman Sachs,
Henry Kravis and Leonardo
DiCaprio. After fundraising
late last year, Mr Morris is
preparing to take Rubicon
global. Over the next two
months, it will launch in 18
countries, in addition to
current operations in the US,
Canada and Puerto Rico.
As with Uber, there are
powerful incumbents and
regulatory barriers in the
waste industry.
But Mr Morris is
optimistic. “We believe we
have an issue that can unite
the country and the world,”
he says. “The only people
who are against what we are
doing are the landfill
companies.”
Wednesday 10 February 2016 ★ FINANCIAL TIMES 11

ARTS

Remnants of
littered the streetscapes of eastern
Europe and the USSR during the same C L A S S I CA L M U S I C
period. They have also fared almost as
badly as those in the eastern bloc. One Renée Fleming

an everyday
wall of the exhibition poignantly illus- Barbican, London
trates an entire gallery’s worth of art- aaaee
works that have been lost, destroyed,
stolen or scrapped. The first space you Richard Fairman
encounter features a wall of cast sculp-

Utopia tural elements that once adorned the

flank of a Falmouth supermarket, most
of the elements of which now languish in
a mid-century modern dealer’s lock-up.
High on the wall above it is a quote from
There is something rather quaint about
shining an “Artist Spotlight” on a singer
who, a couple of years ago, became the
first opera star to sing the US national
anthem at the Super Bowl. Renée Flem-
Postwar England was rich in outdoor sculpture anunnamedlocalcouncillor.“Youeither ing’s career is hardly in need of spot-
love it or you hate it,” he said of the lights, though the Barbican at least
— but much of it has disappeared, as a new supermarket artwork, “and I personally showcased her in a varied sequence of
London show documents. By Edwin Heathcote feelithasnoartisticvalue.” events — a solo recital, a panel discus-
Perhaps the English haven’t loved sion, a masterclass and this concert.
these artworks enough — the films fea- Here was Fleming introducing two

O
ut There celebrates the
explosion of public art that
coincided with the rebuild-
ing of England’s cities after
the second world war. It
shows how much has survived and how
much has been lost — and how breath-
takingly careless England has been with
its legacy of outdoor sculpture. It is part
detective story, part eulogy and part cel-
ebration of the remnants of a moment of
optimism and civic spiritedness that
nowseemsveryfaraway.
Organised by Historic England (the
public body that looks after England’s
historic environment), the exhibition
opens in the wake of controversies over
the loss of some of Eduardo Paolozzi’s
jazzy mosaics at the rebuilt Tottenham
Court Road tube station and the listing of
Barbara Hepworth’s “Winged Figure”
sculpture on the façade of John Lewis’s
Oxford Street store. It seems remarkable
that this work, reputedly seen by more
passing pedestrians than any other pub-
lic sculpture in Britain, should only now
havereceivedprotection.
These, though, are only two works out
of hundreds. The walls at Somerset
House are thick with photos of children
climbing on sculptures in new housing
estates, shiny new shopping centres with
abstract sculptural fountains, and old
ladies in headscarves squinting suspi-
ciously at lumpy bronzes in drizzly pla-
zas. There are sculptures by Elisabeth
Frink, Henry Moore and Bill Pye, along-
side many more figurative works by
less familiar names (some deserv-
edly so). Particularly striking are
the images of William Mitchell’s
deep relief walls, which simultane-
ously evoke Gaudí, Aztec carving
andAlien.
Eachartworkhelpedtoforgeasenseof
place and identity for the new public
spaces of the postwar world. Yet many
became quickly neglected, were stolen
or scrapped, put into storage or lost in
subsequent waves of redevelopment.
One story is told of a large metal sculp-
ture by the Manx artist Bryan Kneale,
which had stood in the grounds of a
Leicestershire school since 1972. Until it
was gone. It was sold at auction for
£360 in 2014, although a gallery later
valueditatupto£30,000.
If there was some popular suspicion
of the new art, it was occasionally jus-
tified: among the pieces illustrated
here are plenty that are lumpy, inele-
gant and unattractive. Equally there are
many whose oblivion seems unde-
served. What makes Out There fascinat-
ing is that it concentrates not so much
on the Moores, Hepworths and
Chadwicks as on the (more or less) figu-
rative works by their slightly younger
contemporaries, many of them émigrés
fromcentralEurope.
Arthur Fleischmann, Heinz Henghes,
Franta Belsky, Siegfried Charoux, Peter
Peri and others brought a new continen-
talmodernistsensibility.Theirworkwas
turnedto asocialpurpose,withadistinct
political agenda. (Indeed, Out There is
part of a season of Somerset House exhi-
bitions marking the 500th anniversary
of Thomas More’s Utopia.) The new
housing estates, civic centres and pedes-
trian precincts were decorated with fam-
ily groups, mother-and-child ensembles
and working men. These were the quasi-
socialist public art of an emerging wel-
fare state, works intended to reinforce
thevaluesunderpinningagoodsociety.
In this they had something in common
with the socialist-realist sculptures that
turing interviews with local residents
certainly reveal a lack of engagement
with the modernist project. But, as the
curator, Sarah Gaventa, who worked so
doggedly to track down many of the
missing works, says, “This is our art, it
belongs to us all.” This is art not as elitist
entertainment but as the background to
everyday life. When the local authority
in the London borough of Tower Ham-
letsdecidedin2012tosellHenryMoore’s
“Old Flo”, which once sat on a housing
estate, there was uproar. The decision
was reversed, and the sculpture still sits
in Yorkshire Sculpture Park, where it has
beenonlong-termloansincethe1990s.
Sometimes we only appreciate some-
thing when it is gone. The age of civic
space conceived as something belonging
to the public rather than to developers
and investors now seems vanishingly
distant. When Harlow New Town was
built, its architects commissioned 600
artworks. The vision was for the Essex
town to be a new Florence. We can snig-
ger now, but the ambition was there for
the streets and squares to be art galleries
belonging to everyone. It is up to us to
ensuretheirsurvival.
To April 10, somersethouse.org.uk
works written specially with her voice in
mind. She wore a subtly sparkling, gold-
green gown for Robin Holloway’s C’est
l’extase and changed to midnight blue for
Anders Hillborg’s The Strand Settings —
new music getting the full diva treat-
ment. How often does that happen?
A selection of Debussy’s songs reimag-
ined for orchestra by Holloway was an
attractive idea. Fleming has good French
and an ideal radiance of voice. Holloway,
Civic spirit: with his keen ear for other composers’
main picture, music, created orchestrations glinting
Barbara with light, including some unusual pas-
Hepworth’s sages for wind and brass alone. But,
‘Contrapuntal sadly, the balance was awry throughout.
Forms’ (1951) in The vocal parts of the songs lie too low
Harlow, Essex. when pitted against an orchestra and
Below: detail of Fleming was often hard to hear.
reliefs and Portentous and brooding, Hillborg’s
mosaics by The Strand Settings cast a more potent
William spell. To words by the Canadian-born
Mitchell, Harlow poet Mark Strand, the cycle of four songs
(1963). Below evokes wide oceans, far-off horizons, the
left: Heinz loneliness of the soul. Deep-coloured,
Henghes’s divided strings oscillate like the rise and
‘Orpheus’ at the fall of waves while the voice intones the
Festival of poems,therhythmsatouchfour-square.
Britain, 1951 The BBC Symphony Orchestra and con-
Harlow Arts Trust; Steven ductor Sakari Oramo created a heady
Baker/Historic England
mood of isolation in the great unknown.
Fleming, though still not dominating in
the Barbican’s difficult acoustic, soared
wheneverthemusicallowed.
With both new works shot through
by orchestral sonorities of light and
dark, French composers made an obvi-
ous fit. Debussy’s Prélude à l’après-midi
d’un faune and the second suite from
Ravel’s Daphnis et Chloé gleamed along-
side in performances with a strong sense
of momentum.
barbican.org.uk

The bittersweet smell of success

THEATRE
Battlefield
Young Vic, London
aaaae
Sarah Hemming
Everything about this staging is distilled.
It marks Peter Brook’s return to The
Mahabharata, the ancient Sanskrit poem
that he first directed in a thrilling, nine-
hour epic in 1985. But in contrast to that
huge, event-filled production, Battlefield
(co-directedbyBrookandMarie-Hélène
Estienne)hasararestillness and focus. It
is short (65 minutes), small (four actors
and a musician) and concerned not with
battle but with the aftermath: with the
hollow nature of victory, the cyclical
nature of war and peace and the diffi-
culty of right action. It seems very much
the work of a man who, at 90, has seen
many conflicts, and it is delivered with
remarkable grace and deceptive light-
nessoftouchbythecast.
The focus is the warrior prince
Yudhishthira (Jared McNeill). He has
emerged, victorious, from an apocalyp-
tic war, but he cannot taste his triumph.
“Victory is defeat,” he realises, reflecting
on the millions of corpses that now litter
the ground — not seen here, but present
in the ghastly image of widows roving
the battlefield trying to piece together
their hacked men. So too, Yudhishthira
must piece together the peace. How can
Worrier prince:
Jared McNeill
and Carole
Karemera in
Peter Brook’s
‘Battlefield’
Donald Cooper
he atone for the carnage? How should he
rule? As he seeks answers, the piece
raises huge questions about the peren-
nial difficulty of attaining justice, peace
and equality.
He takes advice from the old, blind
king (Sean O’Callaghan), from his
mother (Carole Karemera) and from his
wise grandfather Bhishma (Ery Nzara-
mba). The last of these responds with
droll little parables involving birds and
animals. Here the actors don’t just nar-
rate these fables, they become the pro-
tagonists — a disputatious snake, a fatal-
istic worm, a materialistic mongoose —
bringing them to life on the ochre-col-
oured stage with a couple of poles, some
brightly coloured cloth and a slight shift
in stance.
There is a childlike mischief to this
role-play that pulls against the serious
and sometimes ponderous nature of the
script. But it also drives to the heart of
the matter: the role of storytelling in
attempting to comprehend experience.
In this context, the fact that in theatre
multiple levels of narrative can inhabit
the same plane and one actor can be sev-
eral things at once (a man, a king, a
worm), becomes a way of demonstrat-
ing the function of myth and metaphor.
The wearying recurrence of war, the
inevitability of mortality: this gentle,
low-key piece invites you simply to stop
and reflect on them.

To February 27, youngvic.org

sub-Saharan custom. But Siegfried also In one of the brilliant expatiations on

DANCE
Dada Masilo’s Swan Lake
Joyce Theater, New York
aaaaa
Apollinaire Scherr
Dada Masilo is one bold artist. Her
South African Swan Lake starts both
backwards, with Tchaikovsky’s final act
when the swans face upstage in resigned
flight, and with backsides — tutus ruf-
fling as hips twitch.
The audience at the Joyce giggled,
but the 30-year-old Sowetan was not
simply being irreverent. She was also
announcing that for this Swan Lake the
whole body would talk. The 2010 tragi-
comedy abounds in brazen rearrange-
ments, updates and glosses on the origi-
nal. The effect, though, is often subtle,
revealing hidden layers in the old ballet.
The most obvious update is to plot
and character. Odette (Masilo) is sold
off to Siegfried (regal Thabani Ntuli)
for a bride price — an enduring
pays, because he is already in love —
with a man. Tragedy ensues even
though this fellow, the tutued, bare-
chested Odile (lithe Thamsanqa Tsha-
balala), returns the feeling. Homopho-
bia is the evil sorcerer here, still cheating
people of the love they deserve.
Bold: Dada Masilo, right
the traditional mime, Siegfried grazes
Odile’s lips and nose with his fingers
before raising his hand in the usual
pledge of undying devotion: touch
before oaths. More often, Siegfried does
not move at all, frozen between societal
taboos and his own desires.
Odette is as innocent and self-
involved as ever, but with no one to get
her out of her head. The mesmerisingly
musical Masilo tries to lure Siegfried
with a comic solo of quick shifts between
lovely arabesques, disco gesticulations
and the percussive heels of African
dance. (No luck.)
The 12 dancers share this multilingual
fluency, which Masilo uses to contrast a
raucous wedding party with lovers’
encounters. But the choreographer’s
range also matches the emotional vola-
tility of Tchaikovsky. By hour’s end, the
grieving Odette and Odile have stopped
stomping and galloping about and
swathed their legs in black. They are like
trees: rooted below, keening above.
To February 7, joyce.org
12 ★ FINANCIAL TIMES Wednesday 10 February 2016

Crying wolf
Swedish house prices have risen as the Riksbank has cut rates.
Swedbank has controlled costs to offset squeezed interest
margins, pushing up its valuation.

Twitter: @FTLex Email: lex@ft.com Swedish house price index and end-of-year repo rate Swedbank’s price to book ratio
End-year repo rate House price index 2.0
5 700

Coco bonds: cocos may be a taste of things to come. 600 Japan:

Money managers, faced with 4
a mug or two suppressed interest rates, may have
500
1.5 alternating currency
had no choice but to add risk. But no
Taking risk in return for high yields one should be surprised when risky 3 It looks like an epic fail. Despite the
involves, as it turns out, risk. And while securities work precisely as advertised. 400 Bank of Japan cutting interest rates for
central banks are good at encouraging 1.0 new bank reserves into unprecedented
risk-for-yield trades they are, as it 2 300 negative territory last month, the yen
turns out, not good at engineering UK housebuilders: will not stay down. Yesterday, as the
smooth exits from them. 200 yield on 10-year government bonds
The main price index of hybrid landed gently 1 0.5 also went negative for the first time,the
contingent convertible bonds — cocos NIM* 0.92 1.07 1.12 1.17 1.13 1.01 yen extended its rally. From late-
100
— has dropped 4 per cent this month, In a deflationary world, the notion of (%) January lows, it has gained 6 per cent.
as concerns over bank profitability “safe as houses” inverts. As investment 0 0 CIR* 57 54 46 45 45 43 The benchmark Topix index slumped
have risen. Year to date, cocos’ 6.5 per income dissipates, the house becomes (%) 0 nearly 6 per cent yesterday, too, taking
cent decline compares poorly with a the safe. London has the largest 2003 04 05 06 07 08 09 10 11 12 13 14 15 2010 11 12 13 14 15 16 it back to recent bear market lows.
3 per cent drop for the wider European proportion of homes worth over £1m FT graphic Sources: Sveriges Riksbank; Statistics Sweden; Bloomberg NIM=Net interest margin CIR=cost/income ratio Banks including Mitsubishi UFJ led the
high yield market. in the UK, so its vaults hold tumble, down nearly one-tenth, along
Cocos are loss-absorbing bonds considerable value. After years of with exporter Toyota.
which, if bank management or bank surging home prices, transactions in Sweden’s booming housing market risk weightings for property loans and 10 of Swedbank’s 220 branches is it It should not have been like this.
regulators decree, can be swiftly prime central London property last has, in effect, done for Swedbank’s are demanding compulsory still possible to hand cash to a Negative rates should prevent flight to
converted into equity, written down, or year fell 12 per cent, according to data chief executive. Michael Wolf was amortisation of mortgages. Banks human, one reason its cost-income the yen and improve the outlook for
have their interest payments provider LonRes. Yesterday, Redrow, a fired yesterday, partly because of a themselves have become cautious — ratio stands at 43 per cent, well below inflation and growth — all the things
suspended. They qualify as tier one UK housebuilder, reported scandal involving the banks’ Swedbank’s market share in the fourth the European average. Domestic that Japan needs, and which
capital, so banks were eager to sell sluggishness in its central London executives, property deals and quarter was 11 per cent, historically it rivals are similarly lean, and set to Abenomics is designed to bring. But the
them; high single-digit yields in an business. Real estate investment trusts potential conflicts of interest. The has been about 25 per cent. become leaner still; Nordea is BoJ does not operate in a vacuum.
environment of suppressed rates have been weak. shares fell 6 per cent in response. Stalling loan growth and negative targeting a cost-income ratio of Recent economic data from the US
ensured that buyers were eager too. Hedge funds have reportedly taken Mr Wolf’s departure is unfortunate, interest rates have left all Swedish 40 per cent by 2019. have been weak, increasing the odds
Worries have crystallised around aim at some of the London-focused given his record. But rampant house banks struggling to increase revenues. Reducing branch and staff that the Federal Reserve will pause
Deutsche Bank, whose €1.75bn coco builders, such as Berkeley Group, down price growth — the average in Swedbank’s net interest income for numbers while maintaining customer after its December rise. That narrows
bond price has sunk 17 per cent this 15 per cent this year. Valuations on all Stockholm is now over $600,000 — is 2015 was only 6 per cent higher in 2015 service will be the main challenge the expected differential between US
month. The bank said on Monday it housebuilders do seem expensive. The unlikely to pose an immediate threat than it was in 2008. Commission facing Mr Wolf’s successor, who will and Japanese rates, and makes the
had €1bn to cover interest payments sector recently traded at over 2 times to the bank itself. One reason is that income was flat, year on year. still be bound by the bank’s policy of dollar look more likely to weaken. US
projected at €350m. Including older the estimated tangible (adjusted for Swedes have seen it all before; a International expansion is not on the paying out 75 per cent of net income two-year yields have fallen 40 basis
style hybrid debt, however, payments any goodwill) net asset value, easily the legacy of the country’s 1990s crisis agenda and there is limited appetite as dividends. But he or she will points this year.
rise to €800m over the year. The highest ratio for 20 years. was that its banks were better placed among corporates for more borrowing. probably be hoping that the era of For banks, there are two broad
announcement failed to reassure. Still, any trader will want some clear for the 2008 re-run. Impairments are Reducing costs further is the only way soaring house prices and negative implications. They are in the crosshairs
Conversion, even at Deutsche, is a catalyst — more than just a pricey low and capital ratios are well above to increase profits in the short term. central bank interest rates does not of two horrid trends: a sluggish global
very remote probability. Typical coco valuation — before aggressively 20 per cent. Regulators have raised That is easier said than done. At only last too much longer. economy (less lending and the risk of
“triggers” — the capital ratio at which shorting a company’s shares. That defaults) and squeezed interest rate
investors take losses — have stayed at thinking might explain the relatively margins. Nomura estimates that
about 7 per cent. European banks have low percentage of Berkeley Group’s narrower margins at home will shave
pushed average core equity tier one shares sold short so far, less than 1 per Still, there is a difference between by 2017. That target is slipping away. shareholders. That is sensible, but it about 2 per cent off earnings for big
ratios, on a European Banking cent of its free float. It was triple that correcting an overvaluation and a Meanwhile, costs are going up. Coffee raises the fear that Yelp might blow its Japanese banks this year.
Authority sample taken last year, from percentage five years ago. collapse in the housing market. shops in its home market of San $370m in net cash on dicey acquisitions A moribund economy at home sent
9.7 per cent in 2011 to 12.6 per cent. What then, other than fear, could Francisco might garner hundreds of to compensate for the flagging growth banks overseas for business, changing
The worry is that some banks will not cause a fall in house prices in the reviews and thousands of clicks, but of its core business. Last year it spent their balance sheets. Last year,
make interest payments. capital? Higher borrowing costs are an Yelp: that is not the case across middle $134m on Eat 24, a food delivery overseas loans accounted for two-fifths
Though investors may struggle to see unlikely candidate. The Bank of America — so Yelp has begun running business in a crowded market of Mitsubishi UFJ’s loan book and net
it, cocos are serving the financial England governor recently scotched stuck on the tarmac expensive television advertisements. competing with everyone from operating profits. Overseas earnings
system as it was hoped they would. The talk of an interest rate rise this year. In Its own advertising revenues are GrubHub to Amazon to Uber. contributed nearly all of the bank’s
fact that they have proven acutely any case, nationally almost 40 per cent “We still have a long runway,” said dependent on flogging more to local The biggest question, though, earnings growth. Not only would falling
sensitive to market anxiety reflects of buyers paid in cash last year, Yelp’s chief financial officer on the businesses, so the company is hiring remains achieving flight velocity, even rates hurt margins but, like exporters,
confidence that they will, in fact, according to Hamptons. The key quarterly earnings call. Perhaps, but salespeople. It is also paying its staff if the runway is long enough for an banks will suffer the translation effects
absorb losses if banks need them to; concern is reticent foreigners buying you still need enough speed to take off. more stock, including a “one-time A380. Yelp says there are billions of of a strengthening yen.
and that sensitivity is exactly why they fewer pricey London pads; they can Yelp’s velocity is slowing. Annual bump” to give people the “incentive to dollars of local advertising revenue up Japan may have been wise to cut
offered high yields from the outset. account for up to half of the demand in revenue growth at the reviews website stick around”. With the shares down for grabs as small businesses ditch the rates but this will not save its economy
A more serious and amorphous this area. Higher taxes and a dipped below 40 per cent for the first more than 80 per cent from the 2014 legacy Yellow Pages directories. There if the US has made a mistake.
worry is that cocos are just one of many strengthening pound over the past few time in the fourth quarter and is high, that bump will need to be hefty to is nothing wrong with that logic. More
products inflated by low rates and years have probably put them off. forecast to slow to 27 per cent in 2016, have the desired effect. questionable is the assumption that
central bank asset buying. What form Currencies can turn, though. with total sales hitting $700m. As The company rebuffed the Yelp rather than Google or some other Lex on the web
For notes on today’s breaking
the inevitable deflation takes is Berkeley Group and its rivals looked recently as last July the company suggestion of a share buyback to offer digital rival will manage to grab it. And stories go to www.ft.com/lex
anybody’s guess. The bad month for anything but safe investments last year. reckoned it would pass $1bn in revenue similar balm to its ordinary the fight for the prize will not be cheap.

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980 1020 Beijing Sun 8 Mumbai Sun 30
Belfast Sun 7 Munich Snow 5
Belgrade Shower 14 Naples Shower 16
990
9 3 Berlin Cloudy 7 New York Cloudy 5
7 7 Brussels Shower 6 Nice Sun 12
9 990 1000
Budapest Shower 8 Nicosia Shower 16
3 Cairo Fair 18 Oslo Sleet 5
Cardiff Sun 9 Paris Cloudy 8
31 W Chicago Fair -9 Prague Cloudy 6
6 Cologne Sleet 6 Reykjavik Sun 0
13 1010 Copenhagen Shower 4 Riga Rain 8
4 1 0 2 0 Delhi Sun 24 Rio Sun 37
8 Dubai Sun 24 Rome Fair 14
30 45 Dublin Fair 6 San Francisco Sun 18
Edinburgh Fair 6 Singapore Thunder 29
7 14 6 Frankfurt Rain 6 Stockholm Rain 3
16
Geneva Sleet 6 Strasbourg Shower 7
16
Hamburg Rain 6 Sydney Sun 28
Helsinki Shower 6 Tokyo Sun 10
17
Hong Kong Fair 19 Toronto Snow -1
1020 1020 Istanbul Fair 13 Vancouver Cloudy 10
0
Lisbon Rain 17 Vienna Shower 6
Wind speeds in PH 18
London Fair 9 Warsaw Rain 9
Forecasts by Los Angeles Sun 29 Washington Cloudy 3
Wind speed Luxembourg Snow 4 Zagreb Rain 10
in KPH Madrid Shower 14 Zurich Snow 6

CROSSWORD ACROSS
1 Sound like pet with no tail and
4 All English, mighty lot (9)
5 Cut some weed, is pothead
No. 15,160 Set by ARTEXLEN carry out action for dog (6) around? (7)
        5 Behind bars after arrest, 6 Up in the morning, snog
ultimately (8) toplessly (5)
9 Show signs of enjoying comedy 7 1,000 in Asian country reaching
pair (6,2) African port (5)
 
10 Castings? When penniless, opt 8 Gassed wine inferior to coffee
to appear in half of them (6) that’s new for line (8)
11 Vocal vendor introducing 14 Making hay, richer can get up
  unknown vegetable (6) this (9)
12 Maintained tidiness after having 15 Working to pen part of speech,
a shift around (8) mean to be pompous (9)
  
13 Experimental noodle chef 16 Opportunity to get on Casualty
possesses nothing very like (8)
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17 Sort of angry about knight, regulars in ongoing way (7)
  princess returned former lover’s 19 Aim spear high to pierce first

share of property (6,6) person? On the contrary (6)
20 Zero information on course for 21 Egyptian god’s heart sinks for
    virus, say (8) some time (5)
23 Bishop in a hurry makes you 22 Go without duck, mostly one
jump (6) revolting bird (5)
 
24 Name covering a north
European river (6)
25 Refresher on origins of this Solution 15,159
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26 Retired copper hugs unmarried 5 / 9 1 : 2 ' %
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Wednesday 10 February 2016 ★ 13

Cathay Pacific Viacom Deutsche Euro Stoxx Gold Copper (LME) Nikkei 225 Dollar/yen
Sticker shock Why India isn’t Bank 600
the next big thing for Apple 2.22% 15.15% 4.27% 1.6% $5 2.2% 5.4% 0.9%
JAMES CRABTREE, PAGE 14
HK$11.44 $35.54 €13.23 309.39 $1195 $4508 16085 ¥114.81

Icahn racks up losing bets on energy Short

View
3 Investment vehicle slides to 3-year low 3 Decline of 68% since post-crisis peak
STEPHEN FOLEY — NEW YORK loss of $1.1bn. He originally invested details of Mr Icahn’s equity investment The data are based on calculations of
Leo
$1.3bn in Chesapeake, and $1.9bn in performance for the year as a whole. Cheniere is Mr Icahn’s average purchase price made Lewis
Carl Icahn’s publicly traded investment Cheniere. Those investments were down 2.8 per almost 60% by Bloomberg and on the most recent
vehicle, Icahn Enterprises, has slid to its Icahn Enterprises, which is itself 90 cent in the first nine months of 2015, regulatory filings by him and the web of
lowest level in three years, after the vet- per cent owned by Mr Icahn, has lost compounding the woes of the previous below the investment vehicles he uses to buy On a day of uncertainty in Japanese markets — when
eran activist made a string of losing bets almost a quarter of its value this year year, when the declining oil price first investor’s shares. Tokyo stocks shed 5 per cent, the yen hit a 15-month high
on energy companies. and is down 68 per cent since its post- began to weigh on his energy holdings. The misfiring investments in oil and and, in a first for a G7 country, the yield on 10-year govern-
While the market has focused this crisis peak in 2013. He was down 6.4 per cent in 2014, his average gas have made a significant dent in Mr ment bonds turned negative — at least one question was
week on the woes of Chesapeake The company’s shares were trading at first negative year since 2008. purchase Icahn’s personal wealth, which was esti- answered definitively: Japan can play the nervous wreck
Energy, which denied on Monday it was $46.87 yesterday afternoon in New The oil price rout has also lopped mated in March last year by Forbes without any help from China.
considering bankruptcy, this is not the York. $700m from Mr Icahn’s $940m invest- price, giving magazine at $23.5bn. With the Shanghai and Hong Kong markets closed for
only energy company where Mr Icahn is As well as its exposure to Mr Icahn’s ment in Transocean, the oil rig operator, him a loss of Mr Icahn did not respond to a request Chinese new year, this week was always going serve as a
nursing a paper loss of more than $1bn. equity investments, the company serves and $600m from his $1.1bn bet on Free- to comment. controlled experiment: allowing markets in Japan to react
Cheniere Energy, which ousted its as a holding entity for subsidiaries span- port-McMoRan, the copper miner. $1.1bn He had expanded his investments in to domestic developments (notably the central bank’s neg-
founder and chief executive Charif ning railcar manufacturing, casinos and The only energy group in which Mr the oil and gas sector throughout 2015, ative interest rate policy) without news from over the East
Souki in December, is now languishing car parts. Icahn holds a significant stake and including adding the Freeport- China Sea muddying the waters. In the absence of this
almost 60 per cent below Mr Icahn’s Icahn Enterprises is scheduled to where he is up on the deal is CVR McMoRan stake and increasing the regional prompt, Japan’s dealing rooms sourced their dis-
average purchase price, giving him a report its 2015 results this month, giving Energy, which focuses on oil refining. holdings at Cheniere. may globally, and reacted to the European bank sell-off.
But this result raises another difficult question, particu-
larly for Japanese authorities seeking a policy response to
the mayhem: from where will it take its cue next?
After three years of Abenomics-inspired gains, the large
and liquid Japanese stock market has become an ATM for
Keeping the lid on the “risk-off” age — and it has been so correlated with
Coke boosts returns China’s that global macro funds have been using the Tokyo
index to to play their bets on Shanghai. For large chunks of
with cap on costs 2015, Japan’s Topix index traded in lockstep with China’s
CSI300. At some points, Tokyo was matching the action on
Shanghai in almost exact degree and with only a few min-
Cost cuts, higher volumes and price utes delay. There were some phases when the US was
increases helped Coca-Cola overcome clearly driving things but, by January this year, the Topix-
the impact of a strong dollar to report CSI300 correlation had once again become, according to
better than expected fourth-quarter SMBC Nikko strategist Jonathan Allum, “perversely close”.
results, writes Lindsay Whipp in According to CLSA, Topix and Shanghai shares were
Chicago. 66 per cent correlated in the year to date. That is the same
Revenues at the world’s biggest maker as the correlation between the Topix with the S&P 500, to
of fizzy drinks fell 8 per cent to $10bn, which Japan has been beholden for decades. In fact, the
hit by currency headwinds, but net Topix is near the top of the list of markets most correlated
income rose 60 per cent to $1.24bn. with the CSI-300 — behind the Hang Seng, but ahead of
A shift among consumers to more Brent crude, the MSCI Emerging Market index, even the
healthy options means that sales of GSCI Commodity Index.
Coca-Cola’s still beverages, such as So, having shown its markets can misbehave without
juices, water, tea and energy drinks, now China, the big question for Japan is whether, at the end of
account for a quarter of overall sales. the week, it chooses to recouple with its neighbour or carry
However, the company is battling on looking for risk-off triggers in Europe.
falling sales of Diet Coke and Coca-Cola
Zero Coke offerings.
James Quincey, president and chief Topix and Shenzhen CSI 300
operating officer, said that delivering 20-day correlation
Diet Coke back to growth in North 1.0
America was a “multiyear” project
through marketing and packaging, but
0.5
Coca-Cola Zero should recover more
quickly. Topix and
The company said it was three years 0 Shanghai shares
ahead of schedule with plans to refran- have been 66 per
chise all of its US bottling operations. cent correlated in
This will allow it to focus on its beverages -0.5 the year to date —
and in turn reduce costs, and raise mar- Jan 2016 Feb the same as with
gins and return on capital. Source: Thomson Reuters Datastream the S&P 500
Report page 14
leo.lewis@ft.com
Luke Sharrett/Bloomberg

Viacom chief lashes out at ‘naysayers’

and ‘publicity seekers’ as stock slumps
MATTHEW GARRAHAN — NEW YORK man was questioned by the daughter of from Eric Jackson, managing director of
Sumner Redstone, the company’s larg- SpringOwl. “Was he blaming last year’s
Philippe Dauman was unable to
est shareholder. He said he “could not be stock decline on ‘noise’?” Mr Jackson
prevent a slide in Viacom shares
more focused” on improving Viacom’s asked. “Was he saying complaints about
yesterday as the media group’s chief
share price, which was down over 15 per his $54m in compensation last year
executive said “noise” had obscured
cent in afternoon trading. were ‘noise’? We’d like clarification. This
the performance of the company that
Mr Dauman succeeded Mr Redstone morning’s stock declines would appear
owns Paramount Pictures and cable
Fears of Pfizer-Allergan television channels.
as chairman last week, over the opposi- to be due to heavy ‘noise’ surrounding
culture clash after deal tion of Shari Redstone. She had said the the most recent earnings.”
In an often tense investor call, the chief role should not be held by a member of Viacom, which owns channels
Pfizer has sought to quell concerns executive declined to elaborate on what the trustee board established to manage including MTV, Comedy Central and
that its takeover of Allergan will lead he meant. her father’s estate when he dies. Like Nickelodeon, said 2015 had been a
to a clash of cultures. A number of “You haven’t been listening,” he told Ms Redstone, Mr Dauman is a member “challenging year” but pointed to a
Pfizer scientists have told the FT one analyst on the call. “Our outlook of the Redstone family trust. reversal of ratings falls at some of its
they fear the group will move closer to and the facts have been distorted and Mr Dauman has faced criticism from channels such as VH1.
the Allergan approach and step back obscured by the naysayers, self-inter- SpringOwl Asset Management, an activ- Revenues for the first quarter fell
from discovering new drugs. ested critics and publicity seekers,”. ist fund which has called for his removal 6 per cent to $3.15bn. Operating income
Concerns on R&D i PAGE 17 Mr Dauman was speaking after a as chief executive. slipped 10 per cent to $839m and net
week in which his appointment as chair- The “noise” reference drew a rebuke income also fell 10 per cent, to $449m.

Companies / Sectors / People

Companies
21st Century Fox........................................7
AQR.................................................................22
AT&T..............................................................17
Aabar..............................................................16
Air France-KLM........................................16
Air Malawi....................................................16
Airbnb............................................................24
Allergan.........................................................17
Alphabet.......................................................14
Amazon ........................................................12
American Airlines ..................................17
Amgen ..........................................................17
Anglo American.......................................23
Antofagasta................................................23
Apple..............................................................14
Asky Airlines ............................................16
AstraZeneca...............................................23
Axel Springer...............................................7
BHP Billiton................................................23
BP.....................................................................22
Bank of America...................................1,15
Berkeley Group.........................................12
Bridgewater................................................22
BuzzFeed ......................................................7
CH Energy, ................................................14
Citigroup.......................................................15
Coca-Cola...............................................13,14
Colgate-Palmolive...................................17
Columbia Threadneedle.....................22
Comedy Central ......................................13
Credit Suisse.....................................1,16,22
Crédit Agricole.............................................1
Delta Air Lines ........................................17
Deutsche Bank............12,15,16,22,22,24
Doughty Hanson Technology
Ventures........................................................17
Ethiopian Airlines....................................16
First Choice ...............................................17
First Quantum Minerals......................23
Ford..................................................................17
Fortis...............................................................14
Foxconn .......................................................14
Gap..................................................................23
General Electric........................................16
General Motors .......................................17
Glencore.......................................................23
Goodyear Tire & Rubber....................17
Google ....................................................12,14
GrubHub.......................................................12
Handelsbanken.........................................16
Hitachi ..........................................................14
Hon Hai Precision Industry..............14
Huaxia............................................................15
ING...................................................................16
ITC Holdings..............................................14
Index Ventures.........................................17
Industrivärden...........................................16
JPMorgan Chase......................................14
Kenya Airways,.........................................16
LVMH...............................................................8
MTV.................................................................13
Malawian Airlines....................................16
Marks and Spencer................................14
Mitsubishi UFJ...........................................12
Morgan Stanley........................................15
Neveq.............................................................10
Nickelodeon................................................13
Nomura.............................................................1
Nordea...........................................................16
Nordea ..........................................................12
Novo Banco................................................22
Panasonic.....................................................14
Paramount Pictures...............................13
PepsiCo..........................................................17
Pfizer...............................................................17
Procter & Gamble...................................17
Putnam..........................................................22
Raiffeisen......................................................16
Redrow...........................................................12
Regeneron Pharmaceuticals............23
Rightmove......................................................7
Royal Dutch Shell...................................22
SCA..................................................................16
SEB...................................................................16
Salesforce.com..........................................23
Sanofi..............................................................17
Santander..............................................16,22
Schibsted........................................................7
Sears Holdings.........................................23
Sharp..............................................................14
Shiseido.........................................................14
Singapore Airlines..................................16
Sky......................................................................7
Snapchat.......................................................13
Sony Music Entertainment................17
Sophos...........................................................23
SoundCloud.................................................17
South African Airways.........................16
SpringOwl Asset Management.......13
Square...........................................................24
Swedbank...............................................12,16
TECO Energy.............................................14
Tennenbaum Capital Partners........17
Thomson .....................................................17
Toshiba ........................................................14
Toyota......................................................12,14
Trinity Mirror...............................................7
Tui Group.....................................................17
UBS..................................................................16
UNS..................................................................14
US Bancorp.................................................15
Uber..........................................................12,24
UniCredit................................................16,22
Unibail-Rodamco.......................................8
United Air Lines .....................................17
Universal Music Group.........................17
VH1...................................................................13
Valeant...........................................................17
Vertex Pharmaceuticals......................23
Vestas.............................................................17
Viacom...........................................................13
Vitol.................................................................22
Volkswagen ...............................................14
WPP.................................................................23
Warner Music Group.............................17
Wells Fargo ................................................15
Xiaomi............................................................14
Yelp..................................................................12
Sectors
Airlines.....................................................16,17
Automobiles..........................................12,17
Banks.......................................12,14,15,16,22
Energy......................................................14,17
Financial Services.............................22,24
Financials...............................................14,22
Food & Beverage...............................13,14
Industrials....................................................14
Media.........................................................12,17
Pharmaceuticals.......................................17
Retail...............................................................12
Retail & Consumer......................12,13,14
Technology................................12,14,17,24
Telecoms......................................................14
Travel & Leisure...........................12,16,17
Utilities...........................................................14
People
Bonnesen, Birgitte..................................16
Brandicourt, Olivier................................17
Bronner, Göran.........................................16
Cook, Tim.....................................................14
Cryan, John.................................................15
Dalio, Ray.....................................................22
Dauman , Philippe...................................13
Ermotti, Sergio..........................................16
Gardner, Kirt...............................................16
Gebremariam, Tewolde........................16
Germano, Geno.........................................17
Ghizzoni, Federico..................................16
Jackson, Eric...............................................13
Jagiello, Zbigniew....................................16
Joussen, Friedrich...................................17
Kent, Muhtar..............................................14
Mikael Dolsten, Dr..................................17
Quincey, James.........................................13
Read, Ian.......................................................17
Redstone, Shari.........................................13
Redstone, Sumner...................................13
Rosen, Carl..................................................16
Runevad, Anders.....................................17
Saunders, Brent........................................17
Sundström, Anders................................16
Thiam, Tidjane..........................................16
Thompson, Laura....................................17
Uotani, Masahiko.....................................14
Wolf, Michael..............................................16
Wolf , Michael............................................12
del Vecchio, Leonardo.........................16

© The Financial Times Limited 2016 Week 6

14 ★ FINANCIAL TIMES Wednesday 10 February 2016

COMPANIES
INSIDE BUSINESS
Energy
ASIA

Fortis-ITC takeover gets cold reception James

Shares fall amid concerns
that the Canadian utility
is overpaying for the deal
ED CROOKS — NEW YORK
Fortis, the Canadian energy utility, has
agreed a $10.9bn takeover of ITC Hold-
ings, the US power transmission opera-
tor, which was greeted by an immediate
negative response from investors.
North American utilities seeking to
acquire more assets with regulated
returns, which generally offer stable
earnings and reliable dividends for
investors.
Other Canadian companies have also
been making acquisitions of US utility
assets, including Nova Scotia-based
Emera’s $10.4bn takeover of Florida-
based TECO Energy, agreed last Sep-
tember.
Fortis said that its acquisition of ITC
Crabtree
generator of electricity and gas in Can- $10.9 bn ITC’s closing share price on Monday
ada, Arizona and New York. Amount Fortis is evening before the deal was announced.
The combined company would have
about 62 per cent of its earnings in the
US and 35 per cent in Canada, while
paying for largest
pure transmission
operator in the US
The offer is also about 30 per cent
higher than the share price in the 30
days to November 27 last year, shortly
Apple can’t rely on
39 per cent of its total earnings would be
regulated by the US Federal Energy Reg- 53 %
before the company said its board had
started a review of strategic alternatives
India’s market to be
ulatory Commission.
In a statement Fortis said that
Ferc had been “one of the most consist-
Of the offer for
ITC is in cash and
the rest will be in
that could lead to it being taken over.
Several other power companies and
infrastructure investors were reported
the next big thing
ently supportive utility regulators in Fortis shares to have been considering bids.
North America providing reasonable The equity portion of the offer is

News of the deal, which would create
the 13th-largest utility in North Amer-
ica by enterprise value, led to a drop of
12 per cent in Fortis’s shares, among
concerns that it was overpaying at a
time when the Canadian dollar was
weak.
Shares in ITC were down by 2 per cent
following the announcement.
The takeover continues the trend of
would diversify its business, advance its
strategy of investing in electricity trans-
mission, support its recently announced
target of 6 per cent annual dividend
growth to 2020, and enhance earnings
by 5 per cent in its first year “excluding
one-time acquisition-related expenses.”
ITC is the largest pure transmission
operator in the US.
Fortis is a retailer, distributor and
Tokyo policy. Corporate challenge
returns”.
In a presentation to analysts, Fortis
also argued that it had found success
with previous US acquisitions, such as
CH Energy, which it bought for $1.5bn
including debt in 2013, and UNS, which
it acquired for $4.5bn in 2014.
The offer for ITC, which is about 53
per cent in cash and the rest in Fortis
shares, is at a premium of 8 per cent to
R
worth about $6.5bn at Fortis’s share
price yesterday morning, and it is also
taking on $4.4bn of ITC’s debt.
ITC was advised by Lazard, Barclays
and Morgan Stanley, Fortis by Goldman
Sachs and Scotiabank. Legal advisers
were Simpson Thacher & Bartlett and
Jones Day for ITC, White & Case and
Davies Ward Phillips & Vineberg for
Fortis.
ecent visitors to Mumbai’s domestic airport can
hardly have failed to notice the extra love Apple
is lavishing on India. A huge, sleek advertise-
ment for the iPhone 6s dominates the path
from the baggage claim area. Another towers
over the forecourt, right outside the exit.
The time when Apple viewed India as too small and
under-developed to bother with is over.
Facing worries over a sales slowdown in China, Tim
Cook, chief executive, sounded positively bubbly during
January’s earnings call as he described the company’s
Indian plans as “incredibly exciting”.
“We’ve been putting increasingly more energy in India,”
he said, pointing to its youthful demographics and fast-
growing economy to explain a 38 per cent revenue jump
over the most recent quarter.

Japan Inc seeks lift as yen support fades
As currency benefits wear off,
companies need to ask if
enough assets have been sold
KANA INAGAKI — TOKYO
As Japan Inc wrestles with a slowdown
in China and emerging markets, corpo-
rate executives are faced with a bigger
worry: the weakening yen is no longer
coming to their rescue.
Analysts expect the turmoil in the glo-
bal economy and slumping commodity
prices to force Japanese companies to
miss their annual guidance by the big-
gest margin since the start of Abenomics
in the autumn of 2012.
Since Shinzo Abe became prime min-
ister with a pledge to bolster the econ-
omy, Toyota and others have enjoyed
record profits on the back of the yen’s
plunge. That was driven in part by the
Bank of Japan’s monetary expansion.
As corporate earnings improved, the
‘Companies need to make
a decisive break with the
past. If they can’t change,
things will only get worse’
success of Mr Abe’s economic pro-
grammed hinged on Japanese busi-
nesses further boosting their profitabil-
ity and returning those fruits to employ-
ees in the form of higher wages.
Now with currency benefits wearing
off, companies are posed with the
uncomfortable question of whether
they had done their part to let go of
underperforming businesses to
enhance profitability. Troubles at
Toshiba and Sharp suggest otherwise.
“Monetary easing is like anaesthesia.
Companies had to reform themselves
while it was still working, but some
slacked off as profits appeared to rise on
the back of the rising share prices and
the weaker yen,” said Keiichi Ito, chief
quantitative analyst at SMBC Nikko
Securities.
According to the brokerage, Japanese
companies excluding the financial sec-
tor revised down their annual net profit
forecast for the fiscal year ending in
March by an average of 8.5 per cent as of
Feb 5. The guidance cut was blamed on
profit warnings by oil and steel compa-
nies as well as electronics groups includ-
ing Toshiba.
Last week, scandal-hit Toshiba
warned of a Y710bn loss ($6.2bn), its
biggest annual loss yet, as it struggles to
fix its lossmaking consumer electronics
businesses, which have long been aban-
doned by Hitachi and other rivals.
Toyota is one Sharp is now the takeover target of
company that Taiwan’s Hon Hai Precision Industry
has enjoyed after the Japanese display maker failed
record profits to carry out restructuring to stem losses
on the back of from its display business.
the falling yen “Companies need to make a decisive
Dario Pignatelli/Bloomberg
break with the past. If they can’t change,
things will only get worse,” Mr Ito warns.
The chances of the BoJ supporting
businesses with a weaker yen are also
slimmer. The yen broke the Y115 mark
yesterday, rising to its highest level since
early November 2014, only 11 days after
the central bank said it would adopt
negative interest rates.
Downward revisions
Percentage change to Japanese
companies’ annual net profit forecast,
by sector* (%)
-30 -20 -10 0 10
Topix
Topix ex financials
Foods
Pharmaceuticals
Steel
Machinery
Transport equipment
Banks
* For full year ending in March
Sources: SMBC Nikko Securities; Bloomberg
With Japanese companies assuming
an average of Y117.5 against the dollar
during the current financial year, inves-
tors expect more missed forecasts.
Even those that have focused on
improving their profitability have suf-
fered from a slowdown in China and
other emerging markets. Hitachi, for
example, lowered its annual profit fore-
cast by 23 per cent while Panasonic
revised down its operating profit target
by 4.7 per cent.
Still, some analysts say the Japanese
corporate sector remains healthy and
cash-rich thanks to steps taken during
Japanese corporate earnings
Pre-tax profit ($bn)
2012
2013
2014
2015
Toshiba Nippon Nissan Hitachi
Steel
the strong yen era following the global
financial crisis of 2008.
“About one in three or four companies
is still achieving profit levels near record
highs,” says Shinobu Yonezawa, a quan-
titative analyst at Mizuho Securities
Research & Consulting.
“The debate on whether companies
will use their cash to boost dividends,
buy back their shares or to replace
equipment is evidence of their robust
conditions,” Mr Yonezawa adds.
At Toyota, the car group raised its net
profit forecast to another record high
even as a boost from the yen’s fall
against the US dollar was wiped out by
weakness in emerging-market curren-
cies. The robust performance comes
after stringent cost controls and a
revamped system to build higher-qual-
8
ity cars at lower costs.
Masahiko Uotani, Shiseido chief exec-
6
utive, says it managed to increase sales
of cosmetic products in Japan by 5 per
4 cent in 2015 from a year earlier, even
excluding the impact of the weaker yen
2 and inbound tourism demand. The
unusual growth in a shrinking home
0 market came after the company over-
hauled its branding and marketing.
-2 “Regardless of Abenomics, we had to
deliver a strategic and structural trans-
formation,” he says.
See Lex
India’s smartphone market is expanding at a cracking
pace but with 250m owners out of a 1.2bn population,
there is still plenty of room for growth. High-speed 4G
mobile internet is gradually arriving. Apple is also prepar-
ing to open retail stores in the country. More important,
most Indian smartphone owners still have basic, cheap
models, with iPhones making up just a tiny fraction of
sales, suggesting many will eventually upgrade.
It is tempting, therefore, to see India as Apple’s next big
thing. Tempting, but wrong.
First, look at the numbers. Apple shipped a record
800,000 iPhones into India over the past quarter. It might
sell as many as 5m in 2017, according to research group
Convergence Catalyst. That is a decent increase, but still
little more than a rounding error for a company that sold
75m in the past quarter alone.
Apple does not break out iPhone sales by country, but
import data suggest about 24m of those came from China
— meaning that just a small drop in Chinese sales could
wipe out any expected gains in India.
There are important differences between India and
China. India’s economy is much smaller and less urbanised
than its larger neighbour and its mobile telecoms infra-
structure is patchier. Apple is looking to expand in India at
a time of fierce competition, not least from Chinese manu-
facturers such as Xiaomi,
anxious about a slowdown in
their own home market.
A cut-price
Finding good locations for iPhone could
new retail outlets, and navi-
gating the bureaucracy
shift units at the
needed to open them, will risk of junking a
not be easy either.
The trickiest dilemma
hard-won image
Apple faces in India, in com-
mon with other potentially lucrative frontier markets such
as Indonesia, is far simpler: price.
The average smartphone sells in India for about $120,
roughly half the level in China. Mobile operators do not
subsidise the cost of a handset, meaning those entry-level
iPhones advertised at Mumbai’s airport will set you back
more than $700.
There are ways to reduce this sticker shock. Making
iPhones in India would cut import duties. Apple could well
start local production soon via Foxconn of Taiwan, its
main contract manufacturer, which is building a series of
Indian factories. Importing recycled iPhones is another
option, meaning reselling second-hand models at bargain
prices to tempt budget-conscious customers.
Yet Apple must ultimately grapple with a more funda-
mental dilemma that has vexed western brands from car-
maker Volkswagen to retailer Marks and Spencer: its
products are more expensive than what most Indian con-
sumers are willing to pay.
Analysts think the Cupertino-based group could launch
a smaller, less expensive iPhone later this year which could
help sales in countries such as India. But even this is
unlikely to deliver a device priced to suit the mass market.
Developing such a product would require a far bolder
change of direction from Mr Cook, and the logic is ques-
tionable. Last week Apple briefly lost its mantle as the
world’s most valuable company to Alphabet, the holding
company for Google. It has held that title for years by
focusing on premium devices that customers longed to
own. A cut-price iPhone could shift more units, but it
would do so at the risk of junking that hard-won image.
The odds are that Apple will focus on selling more of its
existing devices in India, partly by building a handful of
stores and partly by spending more on advertising. The
result is likely to see Apple’s India sales rise rapidly in the
next few years, giving Mr Cook a good story to tell worried
investors. But will that new growth in India offset whatever
he is about to lose in China and elsewhere? Not likely.
james.crabtree@ft.com

Food & beverage Banks

Plenty of fizz at Coca-Cola despite strong dollar London Whale’s boss fined by UK watchdog
LINDSAY WHIPP — CHICAGO
Coca-Cola’s fourth-quarter earnings
beat market expectations as the
world’s biggest maker of fizzy drinks
cut costs, increased volumes and raised
prices, though the strong dollar pro-
vided strong headwinds.
The Atlanta-based company is also to
refranchise all of its company-owned
bottling operations in the US three years
ahead of schedule, enabling it to focus
on its beverages and in turn reduce costs
and raise margins and return on capital.
In the fourth quarter, Coca-Cola’s rev-
enues fell 8 per cent to $10bn, hampered
by the impact of the strong dollar on
overseas operations and six fewer days
during the period. Foreign exchange
knocked 10 percentage points off reve-
nue growth. Net income jumped 60 per
cent to $1.24bn, or 28 cents a share.
In the US, Coca-Cola intends to take
over 40 per cent of its bottling opera-
tions. Muhtar Kent, chairman and chief
executive, targeted the refranchising a
decade ago and in 2010 acquired the
North American operations of one of its
largest bottlers as part of a move to
improve productivity and customer
service, and create a unified IT system.
He said that the bottlers back in 2010
“needed major surgery”, but that he was
confident the new model was “going to
stay and will add value”.
The company will also sell some of its
bottling operations in China to existing
partners — a subsidiary of Cofco and
Swire Beverage Holdings. As a result, it
will own 3 per cent of its bottling opera-
tions compared with 18 per cent now.
Coca-Cola has also seen benefits in
North America from offering its name-
sake Coke drinks in smaller packaging
amid a health shift away from sugary
drinks in large portions.
Sales of Coca-Cola’s non-fizzy, still
beverages — such as juices, waters, teas
and energy drinks — now account for a
quarter of overall sales.
In the fourth quarter, total unit case
volume increased 3 per cent in North
America, spurred on by a 6 per cent rise
in still drinks and 2 per cent increase in
sparkling. However, revenue and oper-
ating profit declined due to the shorter
accounting period.
CAROLINE BINHAM — FINANCIAL
REGULATION CORRESPONDENT
The UK financial regulator has fined
the boss of the so-called London Whale
at JPMorgan Chase nearly £800,000
over the $6bn mismarking episode, but
Achilles Macris is continuing to press
another part of his legal battle against
the watchdog.
Mr Macris oversaw Bruno Iksil, the
trader at the heart of the scandal that
cost the US bank $1bn in penalties,
including a £138m fine by the Financial
Conduct Authority.
The FCA said yesterday it was fining
Mr Macris £792,000 for failing to inform
it about concerns over the credit deriva-
tives division he headed, where trades
ultimately led to huge losses in 2012. The
regulator said there was no deliberate
dishonesty on the part of Mr Macris — an
apparentchangefromitsinitialstance.
Athens-based Mr Macris labelled the
result a “major climbdown by the FCA,
after four years that I have spent fight-
ing to clear my name.” He received a 30
per cent discount on his fine for settling
at an early stage.
The decision comes as wider ques-
tions are being asked about the right
way to deal with traders accused of
wrongdoing, even as the UK govern-
ment pushes forward tough new indi-
vidual accountability laws.
Mr Macris is still pursuing a parallel
legal challenge against the FCA over its
2013 findings against the bank. He
alleges the public documents improp-
erly identified him as “CIO London
management” and accused him of
deliberately misleading the regulator
without giving him an opportunity to
set out his side of the story.
FCA so-called final notices against
companiesaremeanttoanonymiseindi-
viduals to avoid legal prejudice in possi-
ble future cases against them. But evi-
dencecitingemailsandinstantmessages
included in settlements is often attrib-
utedtoparticulartradersbythemedia.
If the regulator does identify an indi-
vidual — named or otherwise — it is
meant to give that person a right to make
representations before findings are pub-
lished. Crucially, it must also turn over
certainevidencetothoseindividuals.
Wednesday 10 February 2016
Deutsche focus turns to towering task ahead
German bank caught at centre of global stock sell-off as investors weigh up litigation dangers and risks to earnings
JAMES SHOTTER — FRANKFURT
LAURA NOONAN — LONDON
Deutsche Bank spent much of the past
two decades determined to break into
the top tier of investment banking, buy-
ing up the likes of Morgan Grenfell and
Bankers Trust in an attempt to go toe-
to-toe with the US groups that dominate
global finance.
In October, however, Germany’s big-
gest bank effectively called time on this
20-year effort, unveiling a restructuring
plan that involves cutting assets and
jobs, and exiting 10 markets in order to
retrench around its core businesses.
Such a sweeping retrenchment was
never going to be easy. But Deutsche is
now facing the prospect of having to pull
it off against the unforgiving backdrop
of mounting turbulence in financial
markets.
The bank’s shares tumbled 5 per cent
yesterday, having lost 9.5 per cent a day
earlier. Deutsche’s riskiest bonds have
also sold off as investor concerns over
restructuring and potential litigation
charges hanging over the bank put it at
the centre of a global sell-off in banking
securities.
The market turmoil prompted Deut-
sche to issue a statement on Monday
night reassuring investors it had the
means to pay €350m in coupons on its
hybrid capital due in April.
Yesterday, John Cryan, the bank’s new
chief executive, had another go at calm-
ing investors, insisting in a note to staff
published on Deutsche’s website that
the bank’s position was “absolutely
rock-solid”.
He received backing from Germany’s
influential finance minister, Wolfgang
Schäuble, who said in an interview with
Bloomberg yesterday that he had “no
concerns about Deutsche Bank”.
Deutsche is by no means alone in
being shunned by investors. Credit
Suisse’s shares shed another 8 per cent
yesterday, amid broader concern about
the health of the global financial sector
at a time of low growth and record-low
interest rates.
But three months into Deutsche’s
five-year restructuring plan, investors
are increasingly focused on the scale
and difficulty of the task ahead.
Following Deutsche’s lacklustre show-
ing in the last three months of 2015 —
the bank made an operating loss of
about €600m, even excluding one-off
charges — one key question is whether
the lender can shrink itself to the more
Banks
Rates concerns and echoes of Lehman
fuel brutal start to year for US lenders
BEN MCLANNAHAN — NEW YORK
US bank stocks have suffered a brutal
start to 2016. Out of the 90 stocks on
the S&P financials index, just eight
were in positive territory for the year
during trading yesterday.
Two of the biggest losers, Bank of Amer-
ica and Morgan Stanley, are down 27 per
cent and 28 per cent respectively. Citi-
group, also down 27 per cent, is now
trading at just 6.5 times earnings, not far
off its post-crisis trough of 5.9 times,
reached during the depths of the Euro-
pean debt crisis five years ago. What is
going on?
Collapsing expectations of US
interest rate rises
Analysts offer a lot of different reasons
for the big sell-off, but on this they
agree. “Lift-off” in December was sup-
posed to usher in an era of higher inter-
est rates — which are always good news
for the banks. In previous rate-raising
cycles, assets have always re-priced
faster than liabilities, earning banks a
bigger spread between the yields on
their loans and the cost of their funds.
But worsening data since then from
big economies, notably China, have
investors worried that the world econ-
omy is sicker than they had assumed.
Expectations of another three rate rises
from the Fed this year have collapsed.
Talk of a rate cut, or even a move to neg-
ative rates, is entering the picture.
Meanwhile, the muted reaction to
Japan’s latest burst of monetary stimu-
lus has fuelled concerns over the power
of central banks to defibrillate the world
economy. “The impact of [quantitative
easing] seems to be becoming less
meaningful,” says Brian Kleinhanzl,
banks analyst at Keefe, Bruyette &
Woods in New York. “Investors are wor-
ried about what central banks have left.”
Worsening credit quality
In itself, a lower oil price will not do
much direct damage to the big banks’
balance sheets, say analysts. Total
Deutsche Bank’s shares slid 5% yesterday after losing 9.5% the day before amid rising investor concerns that the group can find a successful model — Arne Dedert/EPA
modest institution envisaged by its new
strategy without hurting its earnings
power too dramatically.
On top of this are fears about the
threat of further litigation charges. The
German lender last year paid $2.5bn to
Deutsche is now facing the
prospect of having to pull
off its restructuring against
an unforgiving backdrop
US and UK authorities to settle allega-
tions that it manipulated Libor, and has
€5.5bn set aside to meet further poten-
tial legal costs. But it is still entangled in
a host of regulatory probes into issues
ranging from mortgage-backed securi-
ties to alleged mirror trades involving
Deutsche’s Russian business.
“Deutsche has generated big losses as
a result of their restructuring, but the
benefits of that process haven’t showed
energy exposures amount to less than 3
per cent of gross loans at the big banks,
which have mostly investment-grade
assets, and which have already pumped
up reserves.
Perhaps more worrying are the sec-
ond-round effects: if weakness in oil-de-
pendent communities begins to spill
into commercial real estate loan books,
or if consumers find they cannot afford
repayments on loans for their new gas-
guzzling cars.
In an environment of precious little
growth — the big six US banks produced
exactly the same amount of revenue last
year as they did in 2014 — rising credit
costs are likely to lead to lower profits.
Deutsche Bank
Every sell-off needs a point of focus
and in recent days it has been Deut-
sche Bank. The contortions of the
Frankfurt-based lender weighed on the
entire banking sector on Monday, as it
fought to dispel fears that it could not
pay a coupon on a bond. For some ana-
lysts, the episode had uncomfortable
echoes of events leading to the Lehman
crisis.
“I think maybe counterparty risk is
emerging,” says Shannon Stemm, an
analyst at Edward Jones in St Louis. “At
Citigroup shares are down 27% this
year and trade at 6.5 times earnings
★ FINANCIAL TIMES 15
COMPANIES
Deutsche Bank
Five-year
Share price CDS spread
(€) (basis points)*
40 250
200
30
150
20
100
10 50
2014 15 16
* Annual costs to insure €10m of debt for five years
Return on equity
2015 (%)
10
5
0
up yet, which puts them in a special cat- capital raising. But Wells is expected to “They said at their results that they
egory versus their peers,” says Jon make money over the coming months were not expecting to reduce their
Peace, an analyst at Nomura. “Then and years. Deutsche has said that it can- risk-weighted assets this year and, cou-
there is Deutsche’s specific risk relating not rule out another loss in 2016. pled with a pretty weak earnings out- -5
to litigation.” The German group has already look, that means they’re not building
Deutsche’s €6.8bn loss in 2015 was warned that it expects its capital ratio to much capital organically over the year
driven by €12bn of writedowns. Litiga- come under pressure in the first quarter ahead,” says Jeremy Sigee, an analyst at
tion, restructuring costs and the pros- of this year, before rising thereafter, Barclays.
pect of further charges this year has helped in part by the sale of its 19.99 per “If they need to improve capital ratios
-10
prompted some analysts to suggest that cent stake in Huaxia, the Chinese more rapidly, and don’t want to issue Morgan Barclays Deutsche
the bank might need more capital. lender. However, even if the benefits equity at these price levels, then they Stanley Bank
Deutsche’s core tier one capital ratio from the Huaxia sale feed through, ana- may have to look at other ways to Goldman Credit
— a closely watched measure of finan- lysts worry about how Deutsche will generate capital, such as selling further Sachs Suisse
cial strength — stood at 11.1 per cent at reach its midterm target — a CET1 ratio assets, or being more aggressive on
Source: Bloomberg
the end of December. That is above what of 12.5 per cent by the end of 2018. deleveraging.”
regulators demand, but low in compari-
son with some of its global peers. Gold-
man Sachs’s ratio stands at 12.9 per cent,
while Morgan Stanley has reached 14.1
per cent.
However, the absolute level of the
CET1 ratio is only part of the equation.
Wells Fargo — often described as the
US’s safest bank — has a ratio of just
10.7 per cent, but there are no calls for a
the root, are some of these [European]
banks as well capitalised as the US
banks? Probably not. Can they continue
to build capital in an environment
where there is not a lot of revenue
growth, and a lot of expenses have
already been taken out of the business?”
Banks are banks
These are confidence stocks. When
markets are doing well, banks tend to do
well, as companies feel better about
doing deals and raising money, inves-
tors put on a lot of trades, and asset
management arms benefit from big
inflows.
But when confidence disappears,
banks tend to bear the brunt of the
sell-off. Matt O’Connor, an analyst at
Deutsche Bank, notes that in 15 correc-
tions going back to 1983, the US banks
sector has been hit twice as hard as
the rest of the market — regional banks
about 1.8 times worse, and capital
markets-focused banks about 2.3 times
worse.
“At the end of the day when markets
get scared, banks go down more, that is
just what happens,” he says.
“There is not any kind of imaginary
line where you can say, ‘OK this has gone
down enough,’ and it’s now a recovery
play or a turnround play. They just go
down more, until they are done going
down or markets feel better about
macro conditions.”
Bank stocks were not cheap before
the slide
At the peak last July, the S&P 500 was
trading about 20 per cent above histori-
cal levels, and bank stocks were up to 25
per cent higher than their historical
averages, based on multiples of esti-
mated earnings.
But none of these reasons is providing
much comfort to investors. At Edward
Jones, Ms Stemm is recommending cli-
ents ride out the turmoil by switching
big global universal banks for steadier,
US-focused lenders such as Wells Fargo
and US Bancorp.
16
Banks
Swedbank ousts chief after property scandal
Stockholm-based lender
says new leader needed to
take it ‘to the next level’
RICHARD MILNE
NORDIC CORRESPONDENT
Swedbank, one of the European lenders
to recover most strongly from the finan-
cial crisis, has ousted its chief executive,
arguing that it needs a new leader to
take it “to the next level”.
Michael Wolf has left the Stockholm-
based bank with immediate effect, and
will receive a pay-off of about SKr23m
($2.7m). No full-time replacement has
Ethiopian Airlines soars above its peers
Africa’s leading carrier has
benefited from state aid while
rivals struggle to break even
JOHN AGLIONBY
As big African airlines are grounded in
heavy losses, Ethiopian Airlines contin-
ues to spread its wings. An aggressive
expansion strategy has helped the state-
owned airline transform itself from a
competent regional operator to the con-
tinent’s leading carrier in just five years.
In a region where most airlines are
struggling to break even as they grapple
with the collapse in commodities and
political instability, Ethiopian Airlines
recorded a full-year profit of more than
all other African carriers combined,
according to data from the International
Air Transport Association.
It has already met most of its goals for
its 15-year master plan to 2025 in the
first five years.
“The growth rate in the industry is
very low — the average could be less
than 5 per cent — but we have been
growing 20-25 per cent annually com-
pound, in revenue and fleet [size],” said
Tewolde Gebremariam, chief executive.
In the year to June 2015, the company
recorded a net profit of 3.15bn birr
($148m), compared with 2bn birr in the
same period a year earlier. Based on
accounts audited by the Audit Services
Corporation its operating profit margin
was 9.49 per cent, up from 2.14 per cent
in 2011 and at a level comparable with
the best European carriers. It has also
increased its routes to 89, up from 69 in
2011.
Analysts attribute much of this suc-
cess to the carrier’s benevolent owner,
which does not demand dividends and,
through state policies, can help keep
down labour and financing costs.
The collapsing oil price has slashed
fuel costs and the company has also ben-
efited from turmoil blighting its main
rivals. Kenya Airways, for instance,
launched a big restructuring pro-
gramme last year, including selling off
several of its larger aircraft, which fol-
lowed the failure of an ambitious expan-
sion plan launched in 2011.
Kenya Airways, which is 26.7 per cent
owned by Air France-KLM, has
reported losses for the past three years,
including $252m in the year to March
Contracts & Tenders
been unveiled and the company explic-
itly said the change was made at the
board’s initiative.
Swedbank’s shares have increased
eightfold since Mr Wolf took charge in
March 2009, against a gain of just a third
for an index of European banks, also
beating its local rivals Handelsbanken,
Nordea and SEB in recent years.
The unexpected ousting of Mr Wolf
was initiated by the lender’s board and
comes after a damaging scandal involv-
ing several top Swedbank executives’
property deals.
The Swedish financial regulator is
investigating Swedbank after local
media reported that some managers
Flight growth. Expansion strategy
Spreading its wings: Ethiopian Airlines has been forging partnerships with other carriers to boost revenues and wants to compete further afield — Johan Nilsson/EPA
2015, the largest in Kenyan corporate
history. It has blamed rising competi-
tion, terrorist attacks in Kenya and
hedging losses for its woes.
South African Airways, which is
dependent on government loans and
guarantees, has had seven chief execu-
tives in three years amid losses that
totalled $300m for the three years to
March 2014. It has delayed publishing
Ethiopian Airlines
Passengers (m)
8 5
6
4 per se government controlled, but I
2 ment.”
0 0
2010 11 12 13 14 15
Source: company
★ FINANCIAL TIMES
COMPANIES
had made big private property invest-
ments.
Anders Sundström, Swedbank’s
chairman, said the investigation and
fallout from the scandal played a role in
Mr Wolf’s departure but that the main
reason was the board wanted somebody
else for the next stage of the bank’s
development.
“There is never really a good time. We
in the board want to increase the pace of
the transformation and we want to
bring in a new chief executive to do this,”
he added in a conference call.
But Carl Rosen, chief executive of the
Swedish Shareholders’ Association, told
the Financial Times that Mr Sund-
its annual report for the year to March
2015 as it awaits the finalisation of a gov-
ernment guarantee.
“Ethiopian Airlines [has been]
allowed to get on with its own business,
but at 100 per cent state ownership it
can enjoy some benefits that others like
Kenya Airways can’t,” says Eric Musau,
a Nairobi-based analyst with Standard
Investment Bank. “They don’t have to
Operating profit (Birr bn)
4 way, like Dubai, Abu Dhabi and Qatar.
3 “So we do it in our own way. It is not
2 would say government-led develop-
1 But one director of a rival claims Ethi-
2010 11 12 13 14 15
Banks
Polish lenders face probe
into charges for customers
HENRY FOY — WARSAW
Banks are facing an investigation into
the fees they charge Polish customers,
after their executives were questioned
by regulators and members of the
country’s recently elected conservative
government.
Lenders — including local units of
Santander, Deutsche Bank, ING and
Raiffeisen — have already become sub-
ject to new taxes and regulations, as
Poland’s administration has sought to
constrain the mainly foreign-controlled
industry and help fund more social
spending.
Yesterday, executives from the largest
lenders were summoned to parliament,
where they were warned not to pass on
the resulting costs to their customers.
Under the new tax, banks must pay
0.44 per cent of assets, which is set to
cost the industry €1bn this year — more
than a third of their aggregate net profits
in 2015.
“Many banks have announced or
already implemented [cost] increases
for services,” said Andrzej Jaworski,
chairman of parliament’s public finance
committee. “We are not satisfied
ström’s own position was under ques-
tion. “He is using Michael Wolf as a
scapegoat. This is just one issue with
Swedbank but there are a lot of other
issues,” he said.
Mr Rosen pointed to reports of luxury
hunting trips similar to those that
caused boardroom upheaval last year in
Sweden at paper maker SCA and invest-
ment group Industrivärden.
“This is not the end of the story, it’s
rather the first step in a sequence,” Mr
Rosen said.
Swedbank was the hardest hit of the
big four Swedish lenders during the
financial crisis but under Mr Wolf’s
leadership in the past seven years it has
pay a dividend and can build up capital.
It’s also got much lower labour costs and
higher productivity than its rivals.”
But Mr Musau cautioned that this
beneficial status would change as Ethio-
pia’s economy modernised. “If you have
a much more open economy, salaries
will have to ramp up. The cost will have
to go up at some point and how they
manage that will be a challenge.”
Mr Gebremariam says that apart from
the government allowing the airline to
reinvest all its profits, it does not give
any subsidies. He adds that its “develop-
mental state” economic management is
no different from many other nations.
“The Gulf countries do it in their own
China does it in its own way,” he says.
opian Airlines benefits from being able
to borrow at very favourable, non-com-
mercial, rates due to its state ownership.
“We just can’t compete,” he says.
Mr Gebremariam says his business
with the reasons for raising the fees.”
Yesterday’s hearing is likely to
increase worries over greater interven-
tion in Poland’s economy by the new
government, which came to power in
November. Since then, some of its poli-
cies have led overseas companies to
seek legal advice, and have harmed
investor sentiment
Poland’s index of banking shares is
down 26 per cent over the past 12
months, and now stands at its lowest
level since 2009.
Banks in Poland — which largely
shrugged off the 2008 financial crisis —
are roughly 60 per cent controlled by
foreign investors. Now at least two of the
foreign controlled banks — General
Electric’s Bank BPH and Raiffeissen Pol-
bank — are up for sale, following the
introduction of the new tax, a proposal
to force them to convert Swiss franc
mortgages to zloty, and an increased
levy for the country’s bank stability
fund.
Polish authorities suspect that banks
have increased customer charges in
response to the increased costs — a
move that the government made illegal
under its new tax legislation.
become a darling of investors, known in
particular for its stance of paying out
three-quarters of net profits as divi-
dends.
Mr Wolf has been replaced on a tem-
porary basis by Birgitte Bonnesen but
Swedbank’s board has started searching
for a permanent successor and said it
would present the person “as soon as
possible”.
Mr Sundström said Göran Bronner,
the bank’s finance director — who has
also been implicated in the property
affair — would stay with the lender.
Shares in Swedbank closed down 5.7
per cent at SKr157.80 yesterday.
See Lex
model is to partly emulate that of Singa-
pore Airlines, another state-owned car-
rier that has enjoyed government-led
development. “Number one, in terms of
being a very successful airline in terms
of financial performance. Number two,
they’ve created a very strong global
brand, especially with the Singapore
girl, and this has been achieved in a
small market base because Singapore is
a city state of five million people.”
The chief executive, who assumed his
role in 2011, is not relying on organic
growth to boost revenues and has been
forging partnerships with other airlines.
It holds a 40 per cent stake in Togo-
based start-up Asky Airlines and a
49 per cent stake in Air Malawi, which
operates as Malawian Airlines.
Now, he wants to compete further
afield with carriers in the Gulf and
Europe, many of which are looking to
the world’s fastest-growing region for
expansion. Gerald Khoo, an analyst at
London-based Liberum Capital, pre-
dicts airline competition across the con-
tinent will intensify in coming years as
the emerging middle class look to spend
rising levels of discretionary income.
Banks
UBS freezes pay amid market
turmoil and share price falls
RALPH ATKINS — ZÜRICH
UBS has reacted to the global financial
market turbulence and sharp falls in
bank share prices by freezing salaries
for its investment bankers until at least
the middle of the year.
Employees of the Swiss bank’s 5,200-
strong investment bank division who
had expected a pay rise after a promo-
tion have been told to wait for a salary
review in the second quarter of the year,
according to people familiar with the
decision. The bank has not yet decided
whether staff will then receive back pay.
UBS declined to comment.
Like several of its peers, UBS’s invest-
ment banking operations have been hit
by trading conditions which chief finan-
cial officer Kirt Gardner last week
described as “treacherous”.
UBS reported adjusted pre-tax profits
in the division had fallen to SFr223m
($230m) in the fourth quarter of 2015,
from Sfr276m in the same quarter a year
earlier — a performance chief executive
Sergio Ermotti said was “respectable”.
Revenue declines in its equities and
corporate client divisions had been off-
set by its foreign exchange, rates and
Wednesday 10 February 2016
Banks
UniCredit
management
feel pinch as
restructure
hits profits
RACHEL SANDERSON — MILAN
Net profit at UniCredit, Italy’s largest
bank by assets, fell 15 per cent to
€1.7bn last year, providing little suc-
cour for management who are seeking
to quell increasingly vocal shareholder
discontent.
In a statement, UniCredit, which banks
in 17 countries in Europe, said stated
profits had been hit by restructuring
costs from its Austrian business and the
sale of its Ukraine bank, part of chief
executive Federico Ghizzoni’s plan to
boost capital and profitability.
UniCredit profits also took a hit from
its contribution to Polish and Italian
government-sponsored banking res-
cues.
The Milan-based bank said it would
propose offering shareholders a 12 cents
per share dividend, although partly as
scrip.
UniCredit shares closed 7.9 per cent
down yesterday, extending losses of
more than 50 per cent over the past
three months. Johan De Mulder, analyst
at Bernstein, said better than expected
profit of €153m in the fourth quarter
was “more than offset” by a jump in
costs and provisioning.
“This is a remarkable result consider-
ing the challenging macroeconomic
environment in Europe, in particular in
the banking sector. The implementa-
tion of the plan is well on track,”
Mr Ghizzoni said of the annual results.
UniCredit said it had raised its fully
loaded core tier 1 ratio, a key indicator of
capital strength, to 10.94 per cent on a
pro-forma basis, a level at which it still
lags behind European peers.
Pressure has been building for
months on UniCredit’s management,
including Mr Ghizzoni who has been
CEO for five years. Investors gave a luke-
warm reception to its industrial plan
published in November, which was a
review of another plan released only a
year before. Shares in the bank have also
been battered by market fears over its
exposure to €80bn of non-performing
loans in Italy and volatility across the
wider market.
Shareholders including Aabar,
UniCredit’s largest with a 6.5 per cent
stake, have been privately putting pres-
sure on management for weeks, accord-
ing to people with direct knowledge of
events.
In a sign of escalation of tensions,
Leonardo del Vecchio, executive chair-
man of eyewear group Luxottica, which
owns about 2 per cent of UniCredit’s
shares, in an interview published on
Monday in La Repubblica called for
discontinuity” in the bank’s manage-
ment, including an exit for Mr Ghizzoni.
In a separate statement, UniCredit’s
board yesterday said it “unanimously
expressed its full confidence in the
CEO”.
Mr Ghizzoni said asset quality was
“constantly improving” and “impaired
and bad loans are firmly under control
with high coverage ratios”.
UniCredit’s gross impaired loans fell
1.2 per cent on a quarterly basis. Its net
bad loan ratio was 4.2 per cent in the
fourth quarter and its coverage ratio
61 per cent.
credit operations. Since a wide-ranging
restructuring in 2012, UBS has empha-
sised expanding its wealth management
operations, shifting importance from its
investment bank. However, fourth-
quarter results also showed a 27 per cent
fall to SFr505m in adjusted pre-tax prof-
its in the wealth management unit as a
result of lower client activity and higher
operational expenses.
Yesterday, UBS’s shares closed down
almost 5 per cent — compared with a fall
of more than 8 per cent in shares of its
rival Credit Suisse.
The curb on UBS pay rises is the latest
example of the market turbulence feed-
ing through into bankers’ pay packages.
Wednesday 10 February 2016 ★ FINANCIAL TIMES 17

COMPANIES

Venezuela charge hits Goodyear Media

SoundCloud ‘confident’ it can

US tyre manufacturer pushed into a $380m net loss for quarter as sales fall
ROBERT WRIGHT — NEW YORK
Goodyear Tire & Rubber became the lat-
est big US company to detail damage
from Venezuela’s financial crisis when
the automotive tyre manufacturer
reported a $646m charge against
fourth-quarter earnings.
Laura Thompson, chief financial
officer, said the company had been una-
ble late last year to exchange Vene-
zuela’s bolívar currency for dollars to
purchase raw materials.
“These conditions, combined with
Venezuelan regulations, have increas-
ingly limited our ability to make and
execute operational decisions at our
Venezuelan subsidiary,” Ms Thompson
said.
Goodyear concluded that its Venezue-
lan operations no longer met the
accounting criteria for operations under
its control and had opted to deconsoli-
date it from its results, Ms Thompson
said. The charge — $577m on a post-tax
basis — pushed Goodyear into a $380m country. Amid a byzantine foreign
net loss for the quarter, against net exchange system, which fuels distor-
income of $2.13bn for the fourth quarter tions, the black market rate now trades
of 2014. Net sales fell 6.7 per cent to at about 160 times the main govern-
$4.06bn. ment set exchange rate of 6.3 bolívars
The crisis in Venezuela looks set to per dollar.
push the country into a default on its The country has four exchange rates:
debt payments, amid a dire recession three official ones and the black market
and galloping inflation. After years of one, which on Friday was trading at
mismanagement, the country’s econ- some 1016 per greenback.
omy has also been one of the worst hit Conditions in the country have hit US
worldwide by the fall in the price of oil, airlines particularly hard, since they
which accounts for some 95 per cent of have been unable to repatriate from
the country’s trade revenue. Venezuela revenue earned there.
Tight currency controls imposed by American Airlines — the most
the socialist government have created dependent of the US’s big three legacy
an acute shortage of dollars for compa- airlines on Latin America — reported a
nies seeking to do business with the $592m write-off for the fourth quarter
for the value of its holdings of bolívars.
Delta Air Lines took a $75m fourth-
$646 m 95 % quarter write-off for its bolívar hold-
The US group’s Contribution ings, while United Air Lines announced
charge against made by oil to a $61m write-off over Venezuela along-
fourth-quarter Venezuela’s side its third-quarter results in October.
earnings trade revenue The conditions have also hit other
Pharmaceuticals. New products
companies in the automotive industry,
besides Goodyear.
General Motors took a $600m charge
because of the bolívar’s devaluation for
the second quarter last year and a
$100m writedown for the value of its
manufacturing assets in the country.
Ford in the fourth quarter of 2014 took
an $800m charge for changes in its
accounting for its Venezuelan opera-
tions.
Other big US companies including
Procter & Gamble, Colgate-Palmolive,
PepsiCo and AT&T have also taken
write-offs in recent years.
The country was for many years after
the second world war one of the richest
in the region, with a vibrant economy
buoyed by oil exports.
Goodyear’s shares were up 4.7 per
cent at lunchtime in New York yester-
day, at $27.58, as other aspects of the
results exceeded expectations.
Additional reporting by Andres Schipani in
Bogotá
raise funds to stay in business
ROBERT COOKSON
DIGITAL MEDIA CORRESPONDENT
SoundCloud will need to raise more
money in the next 12 months to stay in
business, according to the music-
streaming service’s latest financial
statements.
The company, which has 175m monthly
listeners, reported that in the year to the
end of December 2014 it made a loss of
€39m on revenues of €17m.
KPMG, SoundCloud’s auditor, said in
the report that the need for additional
funding represented “a material uncer-
tainty which may cast significant doubt
on the company’s ability to continue as a
going concern”.
However, SoundCloud said that its
directors were “confident” in their abil-
ity to raise sufficient equity funding this
year to continue operating “for the fore-
seeable future”.
SoundCloud’s shareholders, which
include private equity firm Doughty
Hanson Technology Ventures and Index
Ventures, the venture capital firm,
invested $42m in the company last year
through a convertible loan note. The
start-up also borrowed $35m from Ten-
nenbaum Capital Partners.
“Over time, SoundCloud will become
a financially sustainable and profitable
platform,” he said.
SoundCloud has established an influ-
ential position within music culture and
is the main platform through which
emerging artists share their songs. It
was valued at $700m in a funding round
in 2014.
However, the company has only
recently started to make money from its
large userbase and expects that it will
continue to make losses for at least the
next three years.
SoundCloud introduced advertising
to its platform last year and plans to add
a subscription tier this year. The com-
pany disclosed that there were “mate-
rial uncertainties” related to the timing
of the launch of subscriptions, as well as
its ability to sign and renew licensing
agreements with record labels — which
it needs to make money from their
songs on its service.
Since 2014, SoundCloud has agreed
licensing deals with a number of big
music copyright owners, including
Warner Music Group and Universal
Music Group. But Sony Music Enter-
tainment, the world’s second-biggest
record company, has yet to agree a deal.

Pfizer moves to ease concerns over R&D Alexander Ljung, SoundCloud’s

founder and chief executive, said inves-
tors had been supportive as “we’re one
of the biggest music platforms in the
world and we’re growing fast.”
While SoundCloud has not disclosed
the terms of its licensing agreements
with copyright holders, such deals typi-
cally require significant upfront cash
payments.

Energy

Vestas sets ‘ambitious’ goals as

Dr Mikael Dolsten, below, president of worldwide research and development, said the combined Pfizer and Allergan would occupy a ‘sweet spot’ in R&D
Scientists fear group will adopt
Allergan approach and step
back from new discoveries
DAVID CROW — NEW YORK
Pfizer’s most senior scientist has moved
to quell concerns that the company’s
$160bn takeover of Allergan will lead to
a clash of cultures and erode its commit-
ment to discovering new drugs.
Many of Pfizer’s top products, such as
breast cancer drug Ibrance, were devel-
oped by its in-house scientists, but
Allergan has tended to eschew early-
stage science in favour of buying medi-
cines discovered by other companies.
A number of Pfizer scientists have
told the Financial Times that they fear
the company will move closer to the
Allergan approach and step back from
discovering new drugs, putting their
jobs at risk.
Dr Mikael Dolsten, president of
worldwide research and development at
Pfizer, said he was aware of the unease
but that the combined company would
occupy a “sweet spot” in research and
development.
Travel & leisure
“I acknowledge the concern; it’s real
in a moment of change, but I think we
can turn it into a positive,” he said.
He said the two companies had “been
evolving their view on what is the right
balance between internal and external
[R&D]”.
While Pfizer was more of a “classical
pharma company” that discovered
most of its drugs in-house, in the past
five years it has pursued more external
collaborations with smaller companies
and academic centres, said Dr Dolsten.
Meanwhile, executives at Allergan
had “opened their eyes” to the benefits
of drug discovery, he added.
Brent Saunders, Allergan chief execu-
tive, has questioned the efficiency of
discovery research conducted by
big pharma groups.
In an interview with the Finan-
cial Times last year, he argued
that smaller companies and aca-
demic centres were better suited
to this sort of science.
Since then, Mr Saunders has
modified his position
somewhat, argu-
ing that drug dis-
covery has a
role at big
pharma companies, providing it is has a
high chance of success and is targeted at
illnesses where the company already
has a strong selection of drugs.
Allergan spends roughly 7 per cent of
its revenues on R&D, less than every
other large drugmaker apart from
Valeant, which has a reputation for fir-
ing scientists. Pfizer invests roughly
16 per cent in R&D.
When Pfizer and Allergan announced
their deal last year, the companies said
they hoped to save $2bn a year, with
roughly a third, or $67m, of that coming
from R&D.
However, some investors say the com-
panies are underplaying the scale of
cost cuts to appease regulators
and politicians, who have
taken a dim view of the tax-
saving deal.
In a recent note to inves-
tors, Andrew Baum, the
head of global healthcare
research at Citi, said there
was a “key risk from
potential dis-
location of
P f i z e r ’s
R&D efforts
during the
integration period, given debates
over the R&D philosophies of the two
companies”.
He said, however, the fact that Ian
Read, Pfizer’s chief executive, would
lead the combined company should
assuage scientists’ concerns, as should a
preponderance of Pfizer executives on
the merged group’s board.
Mr Saunders is widely seen as the
leading candidate to succeed Mr Read,
an impression that was supported yes-
terday when Pfizer announced the sen-
ior management team that would lead
the combined company.
Mr Saunders will become president
and chief operating officer while Geno
Germano, once seen as Mr Read’s heir
apparent, is leaving the drugmaker.
John LaMattina, former head of R&D
at Pfizer, told the FT that Mr Saunders
had “been greatly moderating his com-
ments” on R&D.
“Back in November when I heard that
deal was contingent on Saunders
becoming chief executive on Read’s
retirement, I was worried,” he said.
He added: “Since that time he’s modi-
fied his view, leaving one to hope that he
will in fact get religion and support
internal discovery.”
orders power to record high
RICHARD MILNE
NORDIC CORRESPONDENT
Vestas highlighted how the good times
have returned for wind turbine manu-
facturers as the group forecast a fur-
ther bumper year after posting record
sales, profits and orders.
The Danish company said net profit for
2015 rose by three-quarters to €685m
from the previous year, while sales
increased by a fifth to €8.4bn — both
historic highs.
Vestas laid out what both its chief
executive and analysts called “ambi-
tious” targets for this year: sales of at
least €9bn and an underlying operating
profit margin of more than 11 per cent,
up from 10.2 per cent in 2015.
The world’s leading maker of wind
turbines by sales has been on a roller-
coaster ride in recent years, rising to
become the leader of the nascent indus-
try before almost facing financial col-
lapse in 2012 as government subsidies
were scaled back. But in the past three
years, under chief executive Anders
Runevad, Vestas has recovered strongly
as support from countries such as the US
has increased again.
Mr Runevad hailed the impact of the
Paris climate change talks in December.
“The COP21 [talks] have a limited
impact on the near-term outlook for us.
But, of course, it has a very positive
Pharmaceuticals
Sanofi pins hopes on heart
drug to pump up sales growth
ADAM THOMSON — PARIS
ANDREW WARD — LONDON
An important new heart drug that
Sanofi is counting on to revive growth is
still on course for blockbuster sales, the
company’s chief executive has said,
despite a slow start in the increasingly
price-conscious US market.
long-term impact and also builds confi-
dence into the industry,” he said.
He added that wind was becoming
increasingly cost competitive as a
source of energy, although he acknowl-
edged the continuing role of subsidies,
or “policy decisions” as he called them.
Yesterday, Vestas proposed a full-year
dividend of DKr6.82 per share, up by
three-quarters and equivalent to 30 per
cent of net profits. Shares in Vestas rose
4 per cent to DKr398 after doubling in
value last year.
However, Vestas could be usurped if
merger talks between Germany’s Sie-
mens and Spain’s Gamesa come to frui-
tion. Mr Runevad said he viewed consol-
idation in general as “healthy”, while
reiterating that Vestas’s own strategy “is
based on organic growth”.
Danish wind turbine maker Vestas is
targeting sales of €9bn this year
fourth quarter of 2015, compared with
analysts’ consensus forecast for €40m —
and a long way from the multibillion-
dollar sales expected in the long run.
Praluent is crucial to Sanofi’s pros-
pects as it seeks growth from new prod-
ucts to offset a sharp decline in its best-
selling Lantus insulin, which is facing
cut-price competition after losing pat-

Tui hit by 40% fall in bookings to Turkey amid security fears
ALIYA RAM
Tui Group, the world’s largest tour
operator, has reported a 40 per cent
fall in summer holiday bookings to
Turkey, with customers deterred by
security concerns.
The travel group said unrest at the end
of last year had triggered a “significant
shift in demand away from Turkey” —
one of its key destinations — with holi-
daygoers planning instead to go to Spain
and the Canary Islands.
Tui, which owns the Thomson and
First Choice brands, also warned of fall-
ing demand for holidays to north Africa.
Last summer, it sent 14 per cent of its
customers to Turkey.
Increasing conflict between the Turk-
ish state and Kurdish groups led to vio-
lence in the country at the end of 2015,
which completed a triple whammy of
bad news in three of Tui’s most popular lic spaces” than other countries. “We
destinations — Tunisia, Turkey and have been able to act quickly to remix
Egypt. capacity to alternative, profitable desti-
Friedrich Joussen, chief executive, nations,” he added.
said Turkey was “much less efficient “In addition, our own hotels in desti-
when it comes to the protection of pub- nations outside Turkey — such as Spain
and the Canaries — are benefiting from
the shift in demand.”
He estimated that winter bookings to
Spain had risen between 10 and 20 per
cent.
Tobias Sittig, an analyst at MainFirst,
said the drop in bookings to Turkey was
“quite extreme” but could be offset by
Spain, where Tui is the largest leisure
hotel operator by market share.
Tui said it would deliver profit growth
€132.3m 82% in line with expectations of 10 per cent
Tui’s losses before Percentage of for the full year because it had buoyant
interest, tax and company’s demand from UK holidaymakers and
amortisation in capacity filled more profitable long-haul bookings.
the fourth quarter by bookings The proportion of long-haul bookings
at Tui rose 10 per cent in the three
months to December 31, and average
prices rose 3 per cent during the winter
period.
Tui reported a loss before interest, tax
and amortisation of €132.3m at con-
stant currency rates for the final quarter
of 2015, compared with €141.4m for the
same period a year earlier. Revenues
grew 5.7 per cent from €3.5bn to €3.7bn.
Bookings for the quarter filled 82 per
cent of the company’s capacity, down
slightly from 84 per cent because of sub-
dued demand from Germany, for which
Turkey is “a significant destination”.
In November, Tui suspended trips to
Sharm el-Sheikh in Egypt after a bomb
brought down a Russian aircraft over
the Sinai desert. Last summer, a terror
attack in Sousse, Tunisia, led to the
deaths of 33 of its customers.
ft.com/lombard
Olivier Brandicourt said yesterday he
remained confident that Praluent —
part of a much-trumpeted new class of
ent protection.
Business net income, which excludes
some items, was €1.71bn in the three
cholesterol-lowering products called months to the end of December, 13.5 per
PCSK9 inhibitors — would be a “major, cent lower than a year earlier.
major medicine”.
But he admitted it had taken time to
negotiate access with the insurers and
prescription benefit managers who act
as gatekeepers to the US market, in the
face of tough competition from Amgen’s
rival PCSK9, called Repatha.
“For two medicines with that level of
innovation to reach market at the same
time does not happen very often,” he
told the Financial Times after the com-
pany published its results. “That has
given leverage to payers.”
Sanofi and Amgen have both been
forced to offer discounts on the drugs’
$14,000-a-year price tags since launch-
ing last summer in the latest example of
US healthcare “payers” taking a more
aggressive stance against pharmaceuti-
cals companies.
Sales of Praluent were just €5m in the
18 ★ FINANCIAL TIMES Wednesday 10 February 2016

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.45% -0.45% -0.50% -1.00% -1.60% -5.40% -0.88% -0.748% -1.99% -0.19%
0.55% 1.435% 0.835% 0.644%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jan 10 - Feb 09 Index All World Jan 10 - Feb 09 Index All World Jan 10 - Feb 09 Index All World Jan 10 - Feb 09 Index All World Jan 10 - Feb 09 Index All World Jan 10 - Feb 09 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
1,922.03 17,697.96 1,917.79
9,825.07
12,319.25 12,208.15 1,894.84
1,845.13 5,871.83
5,632.19 8,879.40 16,085.44
Day -0.45% Month -3.99% Year -10.22% Day -2.61% Month -1.85% Year -19.11% Day -1.00% Month -4.62% Year -17.52% Day -1.11% Month -7.32% Year NaN% Day -5.40% Month -9.11% Year -8.86% Day 0.08% Month -0.05% Year -2.29%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
1,335.11 8,886.10 20,333.34
4,643.63 42,338.22 2,729.91
19,288.17 2,623.21
40,265.37
4,264.46 1,219.82 7,927.60
Day -0.45% Month -8.13% Year -10.08% Day -1.02% Month 5.14% Year -1.11% Day -1.60% Month -8.84% Year -17.43% Day -2.39% Month -11.02% Year -25.02% Day 0.55% Month -9.56% Year -21.85% Day 2.53% Month -7.50% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
40,612.21 40,592.09 19,756.14 3,016.70
16,346.45 4,312.74 24,934.33
15,947.54
3,997.54 2,763.49 24,020.98
15,913.12
Day -0.50% Month -2.44% Year -10.53% Day -0.56% Month -4.31% Year -17.55% Day -1.69% Month -7.76% Year -14.78% Day -3.21% Month -19.91% Year -21.87% Day -0.63% Month -16.16% Year -12.94% Day -1.10% Month -3.66% Year -16.36%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 11400.34 11421.99 Cyprus CSE M&P Gen 65.46 66.39 Italy FTSE Italia All-Share 17394.10 17924.51 Philippines Manila Comp 6637.43 6765.13 Taiwan Weighted Pr 8063.00 8131.24 Cross-Border DJ Global Titans ($) 213.03 214.74
Australia All Ordinaries 4882.60 5022.10 Czech Republic
PX 852.97 872.53 FTSE Italia Mid Cap 27618.55 27967.90 Poland Wig 44007.58 44155.15 Thailand Bangkok SET 1303.96 1307.57 Euro Stoxx 50 (Eur) 2743.47 2785.17
S&P/ASX 200 4832.10 4975.40 Denmark OMXC Copenahgen 20 835.57 853.32 FTSE MIB 15913.12 16441.20 Portugal PSI 20 4657.14 4771.34 Turkey BIST 100 72005.24 74203.54 Euronext 100 ID 790.30 803.03
S&P/ASX 200 Res 2305.70 2334.20 Egypt EGX 30 6174.77 6126.47 Japan 2nd Section 4212.37 4373.10 PSI General 2254.28 2304.93 UAE Abu Dhabi General Index 4062.06 4103.05 FTSE 4Good Global ($) 4822.78 4864.41
Austria ATX 1972.03 2026.40 Estonia OMX Tallinn 882.94 889.99 Nikkei 225 16085.44 17004.30 Romania BET Index 6168.70 6238.58 UK FT 30 2623.80 2715.10 FTSE All World 236.36 238.47
Belgium BEL 20 3168.29 3191.55 Finland OMX Helsinki General 7424.68 7562.22 S&P Topix 150 1067.78 1131.62 Russia Micex Index 1723.36 1744.27 FTSE 100 5632.19 5689.36 FTSE E300 1219.82 1239.68
BEL Mid 5063.26 5125.30 France CAC 40 3997.54 4066.31 Topix 1304.33 1380.41 RTX 690.37 704.03 FTSE 4Good UK 5087.97 5139.55 FTSE Eurotop 100 2413.65 2457.57
Brazil Bovespa 40592.09 40821.74 SBF 120 3160.47 3212.03 Jordan Amman SE 2122.84 2111.27 Saudi-Arabia TADAWUL All Share Index 5873.64 5905.50 FTSE All Share 3093.67 3126.95 FTSE Global 100 ($) 1175.21 1182.65
Canada S&P/TSX 60 717.69 738.81 Germany M-DAX 17744.62 17848.63 Kenya NSE 20 3853.56 3844.39 Singapore FTSE Straits Times 2623.21 2558.49 FTSE techMARK 100 3538.73 3537.89 FTSE Gold Min ($) 1171.87 1121.12
S&P/TSX Comp 12208.15 12535.40 TecDAX 1490.49 1500.14 Kuwait KSX Market Index 516.38 520.93 Slovakia SAX 304.51 305.59 USA DJ Composite 5656.92 5655.94 FTSE Latibex Top (Eur) 1949.10 1980.40
S&P/TSX Met & Min 272.46 296.17 XETRA Dax 8879.40 8979.36 Latvia OMX Riga 620.74 616.22 Slovenia SBI TOP 680.16 681.89 DJ Industrial 15947.54 16027.05 FTSE Multinationals ($) 1335.35 1356.20
Chile IGPA Gen 17893.03 17963.23 Greece Athens Gen 450.83 464.23 Lithuania OMX Vilnius 485.50 487.27 South Africa FTSE/JSE All Share 48344.75 49429.59 DJ Transport 6977.42 6924.31 FTSE World ($) 419.29 423.04
China FTSE A200 7611.66 7662.78 FTSE/ASE 20 116.85 121.52 Luxembourg LuxX 1227.75 1245.44 FTSE/JSE Res 20 25684.65 26474.26 DJ Utilities 625.82 622.95 FTSEurofirst 100 (Eur) 3421.82 3483.36
FTSE B35 9940.19 9929.45 Hong Kong Hang Seng 19288.17 19183.09 Malaysia FTSE Bursa KLCI 1662.46 1656.77 FTSE/JSE Top 40 42975.42 43998.31 Nasdaq 100 3945.75 3960.67 FTSEurofirst 80 (Eur) 3706.26 3768.96
Shanghai A 2891.62 2910.08 HS China Enterprise 8054.87 7974.40 Mexico IPC 42338.22 42774.85 South Korea Kospi 1917.79 1916.26 Nasdaq Cmp 4264.46 4283.75 MSCI ACWI Fr ($) 360.81 366.57
Shanghai B 354.33 353.56 HSCC Red Chip 3403.48 3409.77 Morocco MASI 9006.65 9030.48 Kospi 200 233.30 232.91 NYSE Comp 9147.78 9231.33 MSCI All World ($) 1498.54 1523.87
Shanghai Comp 2763.49 2781.02 Hungary Bux 22571.80 23262.32 Netherlands AEX 392.58 400.61 Spain IBEX 35 7927.60 8122.10 S&P 500 1845.13 1853.44 MSCI Europe (Eur) 1240.97 1282.45
Shenzhen A 1830.40 1851.76 India BSE Sensex 24020.98 24287.42 AEX All Share 601.81 614.68 Sri Lanka CSE All Share 6372.71 6401.66 Wilshire 5000 18819.83 18921.93 MSCI Pacific ($) 2126.83 2100.16
Shenzhen B 1141.30 1145.48 S&P CNX 500 6125.60 6209.80 New Zealand NZX 50 6071.32 6153.80 Sweden OMX Stockholm 30 1260.03 1273.95 Venezuela IBC 14372.64 14669.95 S&P Euro (Eur) 1233.21 1253.46
Colombia COLCAP 1192.98 1195.11 Indonesia Jakarta Comp 4768.63 4798.95 Nigeria SE All Share 23977.10 23501.87 OMX Stockholm AS 435.56 440.45 Vietnam VNI 544.75 542.15 S&P Europe 350 (Eur) 1249.56 1271.03
Croatia CROBEX 1603.90 1602.60 Ireland ISEQ Overall 5722.34 5749.94 Norway Oslo All Share 575.17 581.19 Switzerland SMI Index 7583.27 7759.21 S&P Global 1200 ($) 1645.03 1660.74
Israel Tel Aviv 100 12.16 12.32 Pakistan KSE 100 32444.20 32444.20 Stoxx 50 (Eur) 2618.56 2666.80
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Feb 09 %Chg %Chg Feb 09 %Chg %Chg Feb 09 %Chg %Chg Feb 09 %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 27.9 100.46 0.71 Hsbc Holdings 215.2 432.50 1.31 Novartis N 663.0 65.40 0.00 Toyota Motor 1057.8 6154.00 -401.00 Anglo American 333.80 32.4 11.5 Acacia Mining 234.40 11.9 30.2 Lonmin 72.00 54.0 -13.8 Mining 7114.20 10.9 -3.0
Apple 19.0 94.69 -0.32 Bg 204.7 1028.00 -18.06 Nestle N 622.5 66.40 0.00 Mitsubishi Ufj Fin,. 734.3 491.20 -47.00 Fresnillo 853.00 17.0 19.3 Evraz 62.15 10.7 -15.2 Hochschild Mining 58.75 16.9 21.8 Industrial Metals 612.10 10.9 -15.0
Amazon.com 15.8 482.93 -5.17 Astrazeneca 196.4 3914.50 8.50 Santander 558.4 3.38 -0.14 Sumitomo Mitsui Fin,. 640.7 3106.00 -306.00 Randgold Resources Ld 5905.00 16.7 42.5 Centamin 74.65 10.7 15.9 Petropavlovsk 6.41 16.1 -1.7 Forestry & Paper 12311.66 1.2 -14.3
Bank Of America 13.5 12.25 -0.03 Royal Dutch Shell 192.8 1461.00 -17.26 Intesa Sanpaolo 556.5 2.29 0.00 Mizuho Fin,. 518.4 170.30 -11.30 Glencore 94.44 13.6 4.4 Vectura 165.50 5.5 1.1 Lakehouse 40.00 14.3 -57.0 Oil & Gas Producers 5461.96 0.5 -4.0
Hospira 11.8 89.95 -0.01 Royal Dutch Shell 175.4 1461.00 -8.52 Roche Gs 534.2 223.41 0.00 Softbank . 385.6 4770.00 -334.00 Antofagasta 410.90 12.4 -12.4 Bodycote 531.00 4.1 -6.6 Kaz Minerals 114.00 11.2 11.5 Food & Drug Retailers 2629.94 -0.3 5.3
Netflix 11.2 86.61 3.29 Glaxosmithkline 162.4 1360.50 -2.00 Allianz Se Vna O.n. 453.3 135.10 0.00 Fuji Heavy Industries 345.7 3850.00 -338.00 Rio Tinto 1751.00 8.3 -11.5 Riverstone Energy 756.00 3.8 -4.4 Johnston Press 39.50 8.2 -21.6 Industrial Engineering 6216.86 -0.9 -12.8
Alphabet Class A Common Stock 8.9 706.83 2.67 Lloyds Banking 156.6 58.13 -1.43 Daimler Ag Na O.n. 446.0 59.36 0.00 Fast Retailing Co., 328.9 32870.00 -2200.00 Royal Dutch Shell 1461.00 5.6 -0.8 Poundland 148.30 3.6 -28.6 Blackrock Commodities ome Investment Trust 50.50 7.6 -1.2 Electronic & Electrical Equip. 3711.67 -2.5 -12.2
Tesla Motors 7.8 149.61 1.62 Bp 148.4 334.45 -6.20 Ing Groep 433.0 9.41 -0.48 Sony 326.4 2388.50 -180.50 Bhp Billiton 666.10 5.3 -12.4 Hicl Infrastructure Ld 156.00 2.9 3.5 Ferrexpo 20.25 6.6 -5.8 General Retailers 2724.84 -3.5 -9.1
Alphabet Class C Capital Stock 7.7 686.34 3.60 Vodafone 143.5 201.15 0.95 Total 423.5 36.81 -1.36 Fanuc 326.1 15850.00 -530.00 Royal Dutch Shell 1461.00 4.8 -2.5 Assura 55.60 2.4 3.1 Premier Farnell 101.25 5.5 3.3 Equity Investment Instruments 6750.55 -3.9 -9.4
Microsoft 7.5 49.63 0.22 Sabmiller 143.1 4122.00 -6.03 Bnp Paribas Act.a 403.5 37.90 -1.40 Nomura Holdings, . 304.9 510.00 -50.80 Bg 1028.00 2.2 5.2 Nostrum Oil & Gas 275.10 2.3 -32.1 Imagination 132.75 4.9 -0.6 General Industrials 4003.14 -4.0 -8.8
Tesco 173.80 2.1 16.9 Polymetal Int 605.50 2.0 3.5 Hunting 298.75 4.9 -0.6 Personal Goods 25657.00 -4.1 -0.4
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Burberry 1172.00 1.3 -1.0 Tullow Oil 161.50 2.0 -2.5 Blackrock World Mining Trust 172.00 4.7 -5.0 Technology Hardware & Equip. 1156.97 -4.2 -9.3
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Owens Illinois 13.48 1.17 9.51 Qinetiq 223.50 11.50 5.42 Ryanair Holdings 13.20 0.45 3.53 Thb Japan Steel Works, 385.00 19.00 5.19 Imperial Brands 3513.00 - - Sophos 176.20 -23.0 -28.6 Cambian 56.75 -37.5 -45.0 Mobile Telecommunications 4617.82 -9.1 -9.2
Martin Marietta Materials 126.48 8.63 7.32 Wpp 1383.00 41.57 3.11 Dassault Systemes 65.37 1.00 1.55 Toho Z Co., 241.00 8.00 3.43 Worldpay 263.80 -15.0 -14.0 Enterprise Inns 72.95 -19.8 -34.4 Chemring 130.00 -19.9 -31.4 Construction & Materials 4332.79 -8.4 -16.1
Masco 24.95 1.49 6.35 Cineworld 470.20 13.20 2.89 Publicise Sa 52.04 0.58 1.13 Uny Co., 818.00 -6.00 -0.73 Hargreaves Lansdown 1128.00 -14.4 -25.1 Pendragon 33.21 -15.5 -29.0 Shanks 73.50 -15.5 -23.8 Pharmaceuticals & Biotech. 11453.56 -8.3 -11.0
Goodyear Tire & Rubber 27.70 1.36 5.16 Carnival 3034.00 77.00 2.60 Ucb 70.11 0.73 1.05 Nisshin Steel Holdings Co., 1274.00 -12.00 -0.93 Astrazeneca 3914.50 -13.0 -15.2 Auto Trader 347.00 -14.5 -21.8 Premier Oil 27.00 -15.2 -41.9 General Financial 7687.02 -8.2 -18.4
Salesforce.com 56.70 2.65 4.90 Aveva 1277.00 31.11 2.52 Relx 13.86 0.14 0.98 Taisei 742.00 -7.00 -0.93 Inmarsat 948.00 -12.7 -16.4 Rightmove 3457.00 -14.3 -16.2 Equiniti 146.25 -12.8 -22.7 Media 6692.24 -7.8 -9.6
London Stock Exchange 2123.00 -12.0 -22.6 Entertainment One 130.00 -13.9 -22.7 Macau Property Opportunities Fund 112.00 -12.3 -28.7 Life Insurance 6083.92 -7.7 -22.0
Downs Downs Downs Downs
Taylor Wimpey 169.80 -11.9 -16.4 Aldermore 182.00 -13.9 -21.4 Fidelity Japanese Values 73.50 -12.2 -15.3 Oil Equipment & Services 11486.93 -7.5 -11.6
Hcp 28.77 -5.23 -15.37 Anglo American 333.80 -42.30 -11.25 Grifols Sa 14.99 -14.40 -48.99 Sumco 639.00 -88.00 -12.10
St. James's Place 811.50 -11.4 -19.5 Virgin Money Holdings (uk) 273.60 -13.9 -28.1 Premier Foods 31.50 -11.9 -19.7 Fixed Line Telecommunication 5137.20 -7.4 -3.4
Viacom Class B 35.75 -6.10 -14.58 Vedanta Resources 217.50 -26.50 -10.86 Arcelormittal 2.88 -0.35 -10.79 Chiyoda 761.00 -89.00 -10.47
Coca-cola Hbc Ag 1277.00 -11.3 -11.8 Icap 414.10 -13.8 -18.7 Mcbride 137.50 -11.9 -16.9 Banks 2973.53 -7.3 -21.9
Oneok 20.33 -2.83 -12.22 Antofagasta 410.90 -42.50 -9.37 Aegon 4.25 -0.42 -9.01 Denki Kagaku Kogyo Kabushiki Kaisha 402.00 -47.00 -10.47
Aviva 407.20 -10.6 -21.1 Thomas Cook 91.45 -13.8 -24.5 Allianz Technology Trust 520.00 -11.1 -19.4 Household Goods 15075.62 -7.2 -8.2
Diamond Offshore Drilling 17.22 -1.92 -10.03 Sophos 176.20 -19.20 -9.31 B. Sabadell 1.42 -0.09 -5.70 Asahi Glass , 564.00 -60.00 -9.62
Int Consolidated Airlines S.a. 483.60 -10.6 -20.8 Cls Holdings 1381.00 -13.8 -24.1 Partnership Assurance 109.50 -10.6 -20.2 Real Estate Investment Trusts 2843.44 -6.8 -12.6
Consol Energy 7.71 -0.84 -9.82 Glencore 94.44 -8.36 -8.13 Altice B 11.35 -0.68 -5.61 Alps Electric Co., 1874.00 -196.00 -9.47
Shire 3480.00 -10.4 -25.9 Paddy Power Betfair 9260.00 -13.5 - Skyepharma 355.00 -9.9 -10.2 Software & Computer Services 1507.87 -6.5 -8.8
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Feb 09 Currency Mid Change Mid Change Mid Change Feb 09 Currency Mid Change Mid Change Mid Change Feb 09 Currency Mid Change Mid Change Mid Change Feb 09 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 14.2950 0.0161 16.1670 0.2495 20.7063 0.1817 Indonesia Indonesian Rupiah 13605.0000 -20.0000 15386.6275 198.1076 19706.8410 122.2306 Poland Polish Zloty 3.9326 -0.0530 4.4476 0.0046 5.6964 -0.0325 ..Three Month 0.6904 -0.0053 0.7806 0.0052 - -
Australia Australian Dollar 1.4129 -0.0007 1.5980 0.0221 2.0466 0.0147 Israel Israeli Shekel 3.8644 -0.0292 4.3704 0.0301 5.5975 0.0009 Romania Romanian Leu 3.9699 -0.0562 4.4898 0.0017 5.7504 -0.0367 ..One Year 0.6907 -0.0053 0.7799 0.0052 - -
Bahrain Bahrainin Dinar 0.3772 0.0000 0.4265 0.0062 0.5463 0.0043 Japan Japanese Yen 114.7100 -0.8650 129.7316 0.8941 166.1573 0.0296 Russia Russian Ruble 78.7500 0.6175 89.0626 1.9641 114.0693 1.7615 United States United States Dollar - - 1.1310 0.0162 1.4485 0.0111
Bolivia Bolivian Boliviano 6.9100 - 7.8149 0.1119 10.0091 0.0767 ..One Month 114.7099 -0.8652 129.7316 0.8941 166.1572 0.0294 Saudi Arabia Saudi Riyal 3.7505 - 4.2416 0.0608 5.4326 0.0416 ..One Month - - 1.1309 -0.3064 1.4485 0.0111
Brazil Brazilian Real 3.9042 - 4.4154 0.0632 5.6552 0.0433 ..Three Month 114.7097 -0.8656 129.7316 0.8940 166.1569 0.0288 Singapore Singapore Dollar 1.3961 -0.0107 1.5789 0.0107 2.0222 0.0002 ..Three Month - - 1.1307 -0.3065 1.4485 0.0111
Canada Canadian Dollar 1.3819 -0.0150 1.5629 0.0057 2.0017 -0.0062 ..One Year 114.7083 -0.8683 129.7314 0.8937 166.1572 0.0275 South Africa South African Rand 16.0475 -0.0970 18.1490 0.1518 23.2448 0.0387 ..One Year - - 1.1295 -0.3065 1.4488 0.0111
Chile Chilean Peso 713.8300 4.2350 807.3083 16.2854 1033.9818 14.0091 Kenya Kenyan Shilling 101.9000 - 115.2441 1.6508 147.6020 1.1308 South Korea South Korean Won 1197.4500 - 1354.2599 19.3993 1734.5049 13.2886 Venezuela Venezuelan Bolivar Fuerte 6.3050 0.0200 7.1307 0.1244 9.1328 0.0987
China Chinese Yuan 6.5695 - 7.4298 0.1064 9.5159 0.0729 Kuwait Kuwaiti Dinar 0.2997 -0.0005 0.3389 0.0044 0.4340 0.0027 Sweden Swedish Krona 8.3927 -0.0848 9.4917 0.0414 12.1568 -0.0288 Vietnam Vietnamese Dong 22286.0000 - 25204.4713 361.0470 32281.2862 247.3559
Colombia Colombian Peso 3390.8500 29.8550 3834.8925 88.2144 4911.6420 80.5421 Malaysia Malaysian Ringgit 4.1570 - 4.7014 0.0673 6.0214 0.0461 Switzerland Swiss Franc 0.9700 -0.0198 1.0971 -0.0064 1.4051 -0.0177 European Union Euro 0.8842 -0.0128 - - 1.2808 -0.0087
Costa Rica Costa Rican Colon 536.9800 -0.1000 607.2992 8.5878 777.8149 5.8154 Mexico Mexican Peson 18.8228 0.1203 21.2876 0.4390 27.2647 0.3817 Taiwan New Taiwan Dollar 33.3025 - 37.6636 0.5395 48.2386 0.3696 ..One Month 0.8841 -0.0129 - - 1.2807 -0.0087
Czech Republic Czech Koruna 23.9034 -0.3581 27.0336 -0.0120 34.6240 -0.2495 New Zealand New Zealand Dollar 1.5025 -0.0095 1.6993 0.0137 2.1764 0.0030 Thailand Thai Baht 35.4825 -0.0275 40.1290 0.5442 51.3964 0.3542 ..Three Month 0.8839 -0.0129 - - 1.2806 -0.0087
Denmark Danish Krone 6.5990 -0.0963 7.4631 -0.0004 9.5586 -0.0651 Nigeria Nigerian Naira 199.0500 - 225.1162 3.2247 288.3237 2.2089 Tunisia Tunisian Dinar 2.0014 -0.0185 2.2635 0.0119 2.8990 -0.0043 ..One Year 0.8827 -0.0129 - - 1.2799 -0.0087
Egypt Egyptian Pound 7.8332 0.0275 8.8590 0.1576 11.3464 0.1265 Norway Norwegian Krone 8.5644 -0.0501 9.6860 0.0830 12.4056 0.0231 Turkey Turkish Lira 2.9400 -0.0085 3.3249 0.0382 4.2585 0.0205
Hong Kong Hong Kong Dollar 7.7992 0.0101 8.8205 0.1376 11.2971 0.1011 Pakistan Pakistani Rupee 104.6250 0.3200 118.3260 2.0517 151.5492 1.6210 United Arab Emirates UAE Dirham 3.6729 -0.0001 4.1539 0.0594 5.3203 0.0407
Hungary Hungarian Forint 275.7373 -3.0248 311.8459 1.0952 399.4050 -1.2879 Peru Peruvian Nuevo Sol 3.4980 0.0045 3.9561 0.0617 5.0668 0.0453 United Kingdom Pound Sterling 0.6904 -0.0053 0.7808 0.0052 - -
India Indian Rupee 67.9650 0.0350 76.8652 1.1401 98.4472 0.8045 Philippines Philippine Peso 47.6675 -0.0050 53.9097 0.7667 69.0463 0.5218 ..One Month 0.6904 -0.0053 0.7807 0.0052 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Feb 09 Feb 08 Feb 05 Feb 04 Feb 03 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 2608.60 2623.80 2715.10 2737.80 2718.10 0.00 2875.90 2615.30 Food & Drug Retailer 7.23 Household Goods & Ho -4.76 Electricity -7.85 FTSE 100 Price Change FTSE 100 Price Change
Feb 09 chge% Index Feb 08 Feb 05 ago yield% Cover ratio adj Return FT 30 Div Yield 1.87 1.87 1.83 1.81 1.81 0.00 3.93 2.74 Personal Goods 1.15 Technology -4.87 Real Est Invest & Tr -7.91 3I Group PLC 392.00 -12.90 Kingfisher PLC 320.60 5.90
FTSE 100 (100) 5632.19 -1.00 5623.41 5689.36 5848.06 6829.12 4.39 1.08 21.05 6.16 4417.61 P/E Ratio net 23.83 23.84 24.44 24.67 24.68 0.00 19.44 14.26 Oil & Gas Producers 1.00 Tech Hardware & Eq -4.98 Electronic & Elec Eq -8.05 Aberdeen Asset Management PLC 225.50 -4.60 Land Securities Group PLC 1004 -15.00
FTSE 250 (250) 15316.93 -1.17 15293.05 15497.99 16002.28 16658.74 2.94 1.91 17.83 19.73 10673.38 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Oil & Gas 0.93 Software & Comp Serv -4.99 Health Care Eq & Srv -8.16 Admiral Group PLC 1680 -13.00 Legal & General Group PLC 202.40 -0.60
FTSE 250 ex Inv Co (209) 16583.51 -1.19 16557.65 16783.26 17381.50 18020.92 2.97 2.00 16.78 17.99 11781.17 FT 30 hourly changes Mining 0.60 Industrial Transport -6.15 FTSE 250 Index -8.19 Anglo American PLC 333.80 -42.30 Lloyds Banking Group PLC 58.13 -1.23
FTSE 350 (350) 3138.30 -1.03 3133.40 3171.06 3262.07 3736.78 4.14 1.18 20.41 3.54 4961.52 8 9 10 11 12 13 14 15 16 High Low Fixed Line Telecomms 0.35 Consumer Services -6.28 Industrials -8.27 Antofagasta PLC 410.90 -42.50 London Stock Exchange Group PLC 2123 -74.00
FTSE 350 ex Investment Trusts (309) 3115.87 -1.03 3111.01 3148.40 3239.97 3716.95 4.17 1.18 20.26 3.41 2536.32 2623.8 2636.4 2636.8 2632.8 2624.7 2598.3 2589.6 2611 2599.3 2652.5 2584.6 Gas Water & Multi -0.77 Media -6.29 Support Services -8.90 Arm Holdings PLC 940.00 20.00 Marks And Spencer Group PLC 411.20 4.10
FTSE 350 Higher Yield (106) 2884.31 -1.50 2879.81 2928.24 2994.92 3643.38 6.02 0.84 19.84 4.48 4678.82 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Oil Equipment & Serv -0.92 FTSE 100 Index -6.32 Travel & Leisure -9.14 Ashtead Group PLC 825.00 -3.00 Merlin Entertainments PLC 386.50 6.70
FTSE 350 Lower Yield (244) 3092.76 -0.55 3087.94 3109.85 3218.20 3465.18 2.21 2.15 21.03 2.14 3275.68 Beverages -1.46 Mobile Telecomms -6.65 Construct & Material -9.62 Associated British Foods PLC 3039 -6.00 Mondi PLC 1143 6.00
FTSE SmallCap (287) 4181.19 -1.91 4174.67 4262.79 4324.42 4455.03 3.14 1.39 22.89 10.39 5745.78 Tobacco -1.59 FTSE All{HY-}Share Index -6.65 Industrial Metals & -10.30
FTSE SmallCap ex Inv Co (152) 3784.32 -2.04 3778.42 3863.17 3923.41 3922.46 3.11 1.86 17.31 6.43 5456.76 FX: EFFECTIVE INDICES Basic Materials -1.94 FTSE SmallCap Index -6.69 Chemicals -10.81
Astrazeneca PLC 3914.5 8.50 National Grid PLC 943.70 -5.90
Aviva PLC 407.20 -6.60 Next PLC 6665 235.00
FTSE All-Share (637) 3093.67 -1.06 3088.84 3126.95 3215.11 3669.54 4.10 1.19 20.49 3.64 4947.92 Utilities -2.24 Nonlife Insurance -7.03 Real Est Invest & Se -11.26
Feb 08 Feb 05 Mnth Ago Feb 09 Feb 08 Mnth Ago Babcock International Group PLC 862.50 0.50 Old Mutual PLC 154.00 -2.10
FTSE All-Share ex Inv Co (461) 3057.78 -1.05 3053.02 3090.33 3179.39 3637.90 4.15 1.19 20.19 3.38 2530.28 Consumer Goods -2.24 Equity Invest Instr -7.18 Automobiles & Parts -12.48 Bae Systems PLC 469.90 2.40 Pearson PLC 752.00 -16.00
FTSE All-Share ex Multinationals (572) 1043.60 -0.84 863.60 1052.41 1088.88 1183.46 3.20 1.55 20.21 1.18 1780.88 Australia 88.55 88.94 88.84 Sweden 78.71 78.71 79.60 Leisure Goods -2.40 Aerospace & Defense -7.21 Forestry & Paper -12.59 Barclays PLC 156.25 -7.65 Persimmon PLC 1878 19.00
FTSE Fledgling (100) 7284.47 -0.73 7273.11 7338.15 7371.77 7093.45 2.63 1.28 29.56 13.29 13150.04 Canada 83.94 84.71 83.63 Switzerland 157.41 156.94 158.65 Telecommunications -3.80 General Retailers -7.28 Financials -13.57 Barratt Developments PLC 547.50 -2.50 Provident Financial PLC 2793 39.00
FTSE Fledgling ex Inv Co (50) 10368.57 -0.07 10352.40 10375.56 10417.67 8942.31 2.68 1.68 22.23 5.35 18185.97 Denmark 106.96 106.88 105.95 UK 87.12 87.81 89.74 NON FINANCIALS Index -4.15 Pharmace & Biotech -7.55 Financial Services -13.62 Berkeley Group Holdings (The) PLC 3090 -39.00 Prudential PLC 1126 -35.50
FTSE All-Small (387) 2905.24 -1.85 2900.71 2960.09 3001.37 3082.02 3.11 1.39 23.16 7.12 5126.01 Japan 132.86 131.15 131.18 USA 104.49 104.60 106.23 Food Producers -4.75 Health Care -7.60 Banks -16.46 Bg Group PLC 1028 -26.50 Randgold Resources LD 5905 -95.00
FTSE All-Small ex Inv Co Index (202) 2833.21 -1.96 2828.79 2889.81 2933.48 2913.06 3.09 1.85 17.47 4.68 5176.00 New Zealand 111.47 111.92 113.30 Euro 88.39 88.31 86.15 Industrial Eng -7.74 Life Insurance -16.98 Bhp Billiton PLC 666.10 -41.40 Reckitt Benckiser Group PLC 5954 -36.00
FTSE AIM All-Share Index (845) 671.22 -1.42 670.17 680.90 689.85 699.95 1.62 0.57 107.59 0.58 723.00 Norway 84.24 84.65 82.64
BP PLC 334.45 -9.45 RELX PLC 1149 23.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3736.5 5.50 Rio Tinto PLC 1751 -89.50
Oil & Gas (18) 5757.60 -3.38 5748.63 5958.84 6045.36 7808.84 6.54 -0.18 -84.98 0.00 4822.36 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 669.00 -10.00 Rolls-Royce Holdings PLC 512.50 -2.50
Oil & Gas Producers (11) 5489.50 -3.38 5480.94 5681.70 5751.72 7431.70 6.55 -0.23 -66.51 0.00 4754.21 Bt Group PLC 459.95 5.15 Royal Bank Of Scotland Group PLC 225.60 -5.10
Oil Equipment Services & Distribution (7)12095.13 -3.20 12076.27 12495.44 13522.46 17288.16 6.30 1.41 11.26 0.00 8895.47 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1781 4.00 Royal Dutch Shell PLC 1461 -60.50
Basic Materials (28) 2591.60 -4.72 2587.56 2720.08 2688.96 4733.22 7.91 1.88 6.73 2.22 2543.37 Burberry Group PLC 1172 -28.00 Royal Dutch Shell PLC 1461 -61.00
Chemicals (7) 9871.37 -1.07 9855.98 9978.23 10269.41 12156.42 2.92 2.26 15.17 60.48 8534.20 Feb 09 No of US $ Day Mth YTD Total
YTD Gr Div Feb 09 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1063 7.00 Royal Mail PLC 422.40 -1.50
Forestry & Paper (1) 13434.29 0.53 13413.34 13363.76 13704.62 14421.58 2.68 3.37 11.04 0.00 13955.17 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3034 77.00 Rsa Insurance Group PLC 373.20 -7.90
Industrial Metals & Mining (2) 626.10 -2.82 625.13 644.27 656.17 1836.02 1.84 -18.64 -2.92 0.00 546.39 FTSE Global All Cap 7737 406.72 -1.6 -3.9 -9.7 -9.8 557.27
2.8 Oil & Gas 166 285.61 -1.0 -1.0 -6.3 436.77 -6.3 4.4 Centrica PLC 187.90 -4.00 Sabmiller PLC 4122 -8.00
Mining (18) 6829.52 -5.66 6818.87 7238.94 7090.34 13563.33 9.14 1.85 5.91 0.00 3506.39 FTSE Global All Cap 7099 419.71 -1.4 -3.7 -9.4 -9.5 564.94
2.7 Oil & Gas Producers 116 268.48 -0.6 -0.6 -5.9 417.76 -5.9 4.5 Coca-Cola Hbc AG 1277 12.00 Sage Group PLC 579.50 5.00
FTSE Global Large Cap 1416 360.99 -1.4 -3.5 -9.3 -9.4 506.04
3.0 Oil Equipment & Services 41 257.22 -2.7 -2.7 -7.3 359.18 -7.2 4.3 Compass Group PLC 1206 15.00 Sainsbury (J) PLC 242.50 -0.40
Industrials (119) 3836.05 -0.46 3830.07 3853.73 4004.37 4539.94 2.90 1.21 28.58 1.31 3813.01
Construction & Materials (14) 4522.67 -0.55 4515.62 4547.84 4857.15 4832.15 2.60 -0.82 -46.80 0.00 4621.48 FTSE Global Mid Cap 1641 540.62 -2.1 -4.6-10.1 -10.2 706.65
2.3 Basic Materials 261 324.92 -1.1 -1.1 -7.5 476.42 -7.5 3.7 Crh PLC 1639 2.00 Schroders PLC 2366 -39.00
Aerospace & Defense (9) 3895.11 0.21 3889.04 3887.10 3997.92 5271.95 2.93 1.04 32.76 1.32 4027.98 FTSE Global Small Cap 4680 554.27 -2.1 -5.8-11.5 -11.6 703.75
2.3 Chemicals 122 532.26 -1.7 -1.7 -10.0 782.72 -10.0 2.9 Dcc PLC 4835 56.00 Severn Trent PLC 2070 -9.00
General Industrials (6) 3250.47 -0.25 3245.40 3258.46 3370.03 3369.96 3.51 1.67 17.09 0.00 3538.70 FTSE All-World 3057 238.47 -1.5 -3.7 -9.4 -9.6 344.73
2.9 Forestry & Paper 16 175.12 -2.0 -2.0 -10.7 281.28 -10.7 3.9 Diageo PLC 1783 1.00 Shire PLC 3480 -18.00
Electronic & Electrical Equipment (10) 4795.26 -0.80 4787.79 4834.09 4941.90 5051.11 2.57 1.90 20.42 0.00 4246.73 FTSE World 2539 423.04 -1.6 -3.6 -9.4 -9.5 821.13
2.8 Industrial Metals & Mining 67 232.45 -2.0 -2.0 -9.7 342.40 -9.6 3.6 Direct Line Insurance Group PLC 349.20 -1.50 Sky PLC 980.00 2.00
Industrial Engineering (14) 6671.87 -2.23 6661.46 6823.90 7053.25 9626.44 4.50 1.57 14.13 10.28 7823.56 FTSE Global All Cap ex UNITED KINGDOM In 7414 418.61 -1.4 -3.8 -9.6 -9.7 565.62
2.7 Mining 56 338.75 1.8 1.8 4.7 496.43 4.7 6.3 Dixons Carphone PLC 422.90 -1.20 Smith & Nephew PLC 1067 11.00
Industrial Transportation (8) 3573.57 -0.88 3568.00 3605.48 3693.97 4118.26 4.25 0.94 25.10 0.00 3006.34 FTSE Global All Cap ex USA 5744 377.97 -1.6 -3.5 -9.3 -9.4 549.10
3.3 Industrials 534 273.60 -1.3 -1.3 -8.5 380.74 -8.4 2.6 Easyjet PLC 1502 33.00 Smiths Group PLC 898.50 -9.00
Support Services (58) 5812.99 -0.45 5803.93 5839.47 6076.44 6644.97 2.62 1.52 25.23 2.30 5835.47 FTSE Global All Cap ex JAPAN 6475 412.91 -1.9 -4.0 -9.9-10.0 570.80
2.9 Construction & Materials 110 381.18 -3.0 -3.0 -9.0 554.70 -9.0 2.4 Experian PLC 1094 -18.00 Sports Direct International PLC 367.30 1.30
FTSE Developed 2102 385.10 -1.6 -3.9 -9.6 -9.7 531.65
2.8 Aerospace & Defense 27 461.80 -1.7 -1.7 -8.8 636.59 -8.8 2.4 Fresnillo PLC 853.00 3.50 Sse PLC 1347 -15.00
Consumer Goods (40) 17645.71 -0.27 17618.20 17693.69 17890.50 16891.87 3.00 1.84 18.11 41.44 12476.07
FTSE Developed All Cap 5724 402.57 -1.7 -4.2 -9.9-10.0 549.75
2.7 General Industrials 56 201.71 -1.0 -1.0 -7.0 302.24 -6.7 2.8 Gkn PLC 254.30 -2.20 St. James's Place PLC 811.50 -19.50
Automobiles & Parts (1) 5976.17 -0.86 5966.85 6027.87 6342.78 8847.92 3.34 1.53 19.54 0.00 5495.92
FTSE Developed Large Cap 914 356.94 -1.5 -3.7 -9.4 -9.6 499.56
2.9 Electronic & Electrical Equipment 69 277.35 -0.8 -0.8 -12.3 355.55 -12.3 2.2 Glaxosmithkline PLC 1360.5 -2.00 Standard Chartered PLC 403.30 -23.70
Beverages (6) 15096.48 -0.05 15072.94 15104.58 15202.52 14617.49 2.53 1.72 22.91 0.00 10282.57
FTSE Developed Europe Large Cap 219 292.44 -3.2 -5.3-11.2 -11.4 461.49
4.0 Industrial Engineering 104 494.79 -0.8 -0.8 -7.7 677.25 -7.6 3.0 Glencore PLC 94.44 -8.36 Standard Life PLC 337.40 -7.50
Food Producers (10) 8311.02 -0.55 8298.06 8357.10 8494.43 7962.92 1.97 1.39 36.38 3.94 6958.24
FTSE Developed Europe Mid Cap 304 448.33 -4.3 -6.9-12.5 -12.6 642.45
2.9 Industrial Transportation 96 463.51 -0.3 -0.3 -6.4 642.90 -6.3 2.6 Hammerson PLC 540.00 -9.00 Taylor Wimpey PLC 169.80 -0.50
Household Goods & Home Construction (13)12611.68 -0.53 12592.01 12678.95 13128.33 11139.46 2.31 2.55 17.00 0.00 8579.37
FTSE Dev Europe Small Cap 718 631.46 -4.6 -8.6-13.6 -13.7 881.52
2.6 Support Services 72 248.66 -2.1 -2.1 -9.9 332.58 -9.8 2.2 Hargreaves Lansdown PLC 1128 1.00 Tesco PLC 173.80 1.20
Leisure Goods (2) 5243.38 -0.94 5235.21 5293.03 5346.59 4984.03 4.56 1.32 16.56 0.00 4440.82
FTSE North America Large Cap 315 396.32 -1.4 -3.4 -9.0 -9.2 522.86
2.5 Consumer Goods 423 391.00 -0.8 -0.8 -6.1 556.86 -6.0 2.6 Hikma Pharmaceuticals PLC 1995 -66.00 Travis Perkins PLC 1699 11.00
Personal Goods (6) 22338.43 -0.65 22303.60 22485.66 22751.40 23082.17 2.96 3.18 10.61 146.46 14504.48
FTSE North America Mid Cap 394 570.33 -2.3 -5.0-10.8 -10.9 704.84
2.0 Automobiles & Parts 103 322.47 -0.8 -0.8 -15.5 440.84 -15.5 3.1 HSBC Holdings PLC 432.50 -5.95 Tui AG 1083 -15.00
Tobacco (2) 45446.96 -0.05 45376.10 45471.75 45307.99 42878.13 4.01 1.29 19.37 207.72 27819.57
FTSE North America Small Cap 1513 560.33 -2.3 -6.2-12.6 -12.7 673.89
2.1 Beverages 48 550.08 -1.0 -1.0 -3.8 793.86 -3.8 2.6 Imperial Brands PLC 3513 -16.50 Unilever PLC 2931.5 -8.00
Health Care (19) 8431.83 -0.17 8418.68 8446.26 8767.65 9723.22 4.15 0.50 48.51 0.18 6148.11
FTSE North America 709 263.78 -1.6 -3.6 -9.3 -9.5 356.57
2.4 Food Producers 106 539.41 -0.7 -0.7 -3.5 790.23 -3.3 2.3 Inmarsat PLC 948.00 -0.50 United Utilities Group PLC 902.00 -5.50
Health Care Equipment & Services (7) 6598.52 0.02 6588.23 6597.30 6773.63 6833.00 1.72 1.86 31.20 1.60 5595.91
FTSE Developed ex North America 1393 203.71 -1.7 -4.3-10.1 -10.1 317.46
3.4 Household Goods & Home Construction 47 384.13 -0.5 -0.5 -4.3 545.19 -4.0 2.4 Intercontinental Hotels Group PLC 2234 50.00 Vodafone Group PLC 201.15 0.95
Pharmaceuticals & Biotechnology (12)11369.39 -0.19 11351.67 11390.88 11836.44 13248.61 4.37 0.45 51.18 0.00 7363.64
FTSE Japan Large Cap 177 300.67 1.8 -3.6 -8.3 -8.3 376.13
2.2 Leisure Goods 28 120.70 0.0 0.0 -8.5 155.42 -8.4 1.5 International Consolidated Airlines Group S.A. 483.60 8.30 Whitbread PLC 3700 47.00
Consumer Services (96) 4462.60 0.74 4455.64 4429.61 4605.60 4860.50 2.54 1.54 25.63 7.85 4035.02 FTSE Japan Mid Cap 303 467.18 2.5 -1.2 -4.9 -5.0 564.50
1.7 Personal Goods 80 576.52 -1.6 -1.6 -3.5 782.74 -3.4 2.1
Food & Drug Retailers (7) 2741.54 -0.10 2737.27 2744.31 2798.13 3434.47 1.95 -1.49 -34.36 0.00 3134.97 Intertek Group PLC 2679 -39.00 Wolseley PLC 3303 73.00
FTSE Global wi JAPAN Small Cap 782 494.83 2.8 -2.1 -6.0 -6.0 617.12
2.0 Tobacco 11 1226.24 -0.1 -0.1 0.8 2399.45 0.9 3.8 Intu Properties PLC 274.40 -6.50 Worldpay Group PLC 263.80 -11.80
General Retailers (32) 2667.80 0.90 2663.64 2644.11 2727.07 2945.04 2.72 2.24 16.42 1.98 2926.30
FTSE Japan 480 126.01 2.0 -3.1 -7.6 2.1 Health Care
-7.6 177.12 173 404.79 -1.7 -1.7 -11.7 564.39 -11.6 2.1 Itv PLC 241.50 4.50 Wpp PLC 1383 45.00
Media (22) 6778.14 1.25 6767.58 6694.69 7041.13 7194.99 3.02 1.56 21.27 1.47 4002.54
FTSE Asia Pacific Large Cap ex Japan 531 495.05 -0.2 -1.6 -8.5 -8.5 740.77
3.6 Health Care Equipment & Services 61 584.79 -2.6 -2.6 -10.0 670.79 -10.0 1.1 Johnson Matthey PLC 2254 -23.00
Travel & Leisure (35) 7764.19 0.50 7752.08 7725.29 8038.72 8178.01 2.21 1.81 24.92 32.56 7104.55
FTSE Asia Pacific Mid Cap ex Japan 432 689.52 -0.1 -2.0 -7.6 -7.7 995.20
3.1 Pharmaceuticals & Biotechnology 112 305.40 -1.5 -1.5 -12.2 442.52 -12.1 2.4
Telecommunications (7) 3714.13 0.55 3708.34 3693.67 3846.50 3959.87 4.40 0.16 146.08 0.00 3891.87 FTSE Asia Pacific Small Cap ex Japan 1426 463.72 -0.1 -2.5 -7.0 -7.1 660.62
3.0 Consumer Services 386 351.38 -1.8 -1.8 -9.8 457.03 -9.7 1.9
Fixed Line Telecommunications (5) 5216.61 0.72 5208.47 5179.54 5424.56 5091.80 2.97 1.64 20.49 0.00 4524.11
Mobile Telecommunications (2) 4610.83 0.44 4603.64 4590.84 4760.83 5218.22 5.45 -0.44 -41.72 0.00 4312.37
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
963
2013
393.30
528.06
-0.2
-0.7
-1.6
-1.0
-8.4
-7.5
-8.4 625.53
3.5 Food & Drug Retailers
-7.6 753.50
3.4 General Retailers
53 274.67
121 470.73
-2.2
-1.4
-2.2 -8.4 371.75
-1.4 -11.7 596.99 -11.6
-8.2 2.0
1.7
UK STOCK MARKET TRADING DATA
Utilities (7) 7994.19 -0.97 7981.72 8072.47 8211.32 8764.74 5.08 1.36 14.46 33.42 8548.96 FTSE Emerging Large Cap 502 495.97 -0.8 -0.9 -7.9 -7.9 712.04
3.5 Media 87 265.72 -2.8 -2.8 -8.1 346.54 -8.0 2.2 Feb 09 Feb 08 Feb 05 Feb 04 Feb 03 Yr Ago
Electricity (2) 7776.39 -1.50 7764.27 7894.83 8098.21 9640.42 6.51 1.34 11.45 145.17 10537.53 FTSE Emerging Mid Cap 453 669.53 -0.5 -0.4 -5.6 -5.7 950.94
3.1 Travel & Leisure 125 344.30 -1.0 -1.0 -9.7 452.42 -9.6 1.9 SEAQ Bargains 4067.00 4001.00 4001.00 4001.00 3282.00 -
Gas Water & Multiutilities (5) 7606.32 -0.84 7594.47 7670.93 7787.09 8077.25 4.74 1.37 15.43 5.49 8138.17 FTSE Emerging Small Cap 1058 571.37 -0.2 -2.4 -7.1 -7.2 785.92
3.2 Telecommunication 92 156.21 -1.1 -1.1 -0.8 275.95 -0.4 4.3 Order Book Turnover (m) 76.12 62.33 62.33 62.33 0.36 58.05
Financials (284) 3735.82 -1.92 3730.00 3808.89 3951.90 4783.83 4.39 1.87 12.17 4.47 3266.35 FTSE Emerging Europe 99 253.25 -3.2 -1.0 -5.1 -5.2 372.15
4.5 Fixed Line Telecommuniations 44 136.26 -1.1 -1.1 2.8 263.98 3.5 4.6 Order Book Bargains 1272320.00 1124942.00 1124942.00 1124942.00 148.00 1086527.00
Banks (9) 2936.05 -2.40 2931.48 3008.11 3149.44 4279.44 5.60 1.37 13.09 0.00 2023.91 FTSE Latin America All Cap 245 566.12 -1.0 3.1 -5.3 -5.4 837.57
3.9 Mobile Telecommunications 48 155.16 -1.0 -1.0 -5.8 247.60 -5.8 3.8 Order Book Shares Traded (m) 1882.00 1737.00 1737.00 1737.00 0.00 1932.00
Nonlife Insurance (10) 2557.58 -0.87 2553.60 2580.03 2635.38 2355.63 2.71 2.20 16.71 0.00 4298.29 FTSE Middle East and Africa All Cap 219 573.31 -2.3 -0.2 -7.2 3.0 Utilities
-7.3 855.15 163 240.18 -0.7 -0.7 1.2 441.01 1.5 3.9 Total Equity Turnover (£m) 3792.66 - - - 0.40 0.01
Life Insurance/Assurance (11) 6177.96 -2.02 6168.32 6305.33 6591.84 8307.90 4.91 1.59 12.83 0.00 5671.43 FTSE Global wi UNITED KINGDOM All Cap In 323 291.22 -3.5 -5.4-11.4 4.2 Electricity
-11.5 460.73 112 263.77 -0.6 -0.6 1.9 479.51 2.2 3.7 Total Mkt Bargains 1427875.00 1.00 1.00 1.00 159.00 7.00
Index- Real Estate Investment & Services (21) 2625.71 -1.61 2621.61 2668.81 2736.89 2832.96 2.42 5.64 7.34 0.94 6752.43 FTSE Global wi USA All Cap 1993 450.26 -1.6 -4.3-10.0 2.3 Gas Water & Multiutilities
-10.2 578.09 51 252.03 -1.1 -1.1 0.1 473.98 0.2 4.4 Total Shares Traded (m) 5734.00 0.00 0.00 0.00 0.00 8.00
Real Estate Investment Trusts (25) 2592.92 -1.48 2588.87 2631.90 2720.30 2983.74 3.40 5.94 4.94 6.71 3071.60 FTSE Europe All Cap 1400 336.91 -3.5 -5.7-11.5 3.7 Financials
-11.6 515.43 675 171.42 -2.4 -2.4 -14.6 266.75 -14.5 3.5 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 6586.65 -1.80 6576.38 6707.68 6983.03 7703.30 3.52 2.19 12.95 28.97 7175.86 FTSE Eurobloc All Cap 638 314.59 -3.7 -6.3-12.1 3.5 Banks
-12.3 487.18 244 148.76 -2.8 -2.8 -16.7 246.77 -16.5 4.1 (c) Market closed.
Equity Investment Instruments (176) 6966.92 -1.34 6956.06 7061.76 7153.22 7648.16 2.93 1.07 31.96 20.35 3674.13 FTSE RAFI All World 3000 3006 4920.13 -1.5 -3.4 -9.2 3.5 Nonlife Insurance
-9.3 6207.67 70 195.17 -1.0 -1.0 -9.0 271.93 -8.9 2.6
Non Financials (353) 3694.43 -0.79 3688.67 3723.90 3817.75 4270.12 4.01 0.95 26.14 4.32 5179.65 FTSE RAFI US 1000 993 8087.54 -1.3 -2.8 -8.3 2.8 Life Insurance
-8.5 10246.60 51 161.26 -2.5 -2.5 -18.7 244.86 -18.6 3.5
Technology (19) 1314.49 0.96 1312.44 1301.98 1371.40 1300.78 1.54 1.99 32.72 0.17 1643.95 FTSE EDHEC-Risk Efficient All-World 3057 288.20 -1.8 -3.5 -8.6 2.6 Financial Services
-8.7 387.76 141 186.67 -3.0 -3.0 -16.1 248.92 -16.0 2.4 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1682.04 0.03 1679.41 1681.52 1753.94 1437.40 2.12 1.83 25.73 0.48 2205.51 FTSE EDHEC-Risk Efficient Developed Europe 523 250.40 -3.7 -5.2-10.3 3.1 Technology
-10.3 365.79 184 155.32 -1.5 -1.5 -10.9 185.64 -10.7 2.0 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (6) 1448.72 1.75 1446.46 1423.84 1512.11 1604.77 1.05 2.25 42.25 0.00 1662.99 Software & Computer Services 85 277.79 -2.1 -2.1 -10.4 319.10 -10.3 1.2 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 99 112.02 -0.7 -0.7 -11.4 137.88 -11.1 2.8 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 5714.66 5710.46 5708.61 5698.82 5678.39 5623.01 5608.35 5641.88 5610.28 5739.18 5596.38 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
FTSE 250 15518.88 15439.78 15434.80 15386.35 15340.85 15244.55 15224.11 15321.84 15302.54 15565.15 15204.46 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4257.87 4254.77 4252.15 4248.85 4240.86 4222.74 4214.45 4211.87 4203.73 4259.55 4181.19
FTSE All-Share 3138.61 3134.02 3132.98 3126.96 3116.27 3088.28 3080.96 3098.88 3084.15 3148.97 3075.34 www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:09:15:30 Day's Low14:26:30 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5673.58(20/01/2016) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:08:13:00 Day's Low14:26:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3123.43(20/01/2016)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Investment Company (The) Int 0.474 0.648 0.242 0.402 5.09 8.48 5 5.5 Feb 19 12.1 11.22 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Redrow Int 603 560 104 91 22.9 19.9 4 2 Mar 31 8 4 02/02 180.00 CYBG CYBG PLC 194.00 -8.00 210.00 180.00 170587.2
94p Nil 23-02-16 165.56 161.28 Chemring Group PLC 162.25 -4.25 Sabien Technology Group Int 0.321 0.542 0.983L 0.52L 2.3L 1.6L - - - - -

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Wednesday 10 February 2016 ★ FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 36.42 -0.70 37.12 30.97 4.94 40.15 224025.08 Lockheed 216.90 2.37 227.91 181.91 2.65 20.13 66650.86
ANZ 22.79 -0.94 37.25 22.65 10.77 9.34 47059.08 Nokia 5.24 0.02 7.87 4.91 2.52 -38.15 23639.91 AstellasPh 1626.5 -36.00 2047 1499.5 1.84 20.34 31503.74 AtlasCpcoB 168.00 1.40 270.00 162.60 1.71 15.27 7811.17 AutomData 80.79 -0.46 90.67 64.29 2.43 26.90 36957.48 Lowes 63.35 -0.20 78.13 62.62 1.51 21.33 57971.88
BHPBilltn 16.05 -0.32 34.29 14.06 14.34 18.89 36482.79 SampoA 39.25 -0.99 49.40 39.04 4.69 13.82 24805.08 Bridgestne 3891 -248.00 5182 3753.5 2.82 12.32 27580.69 Ericsson 71.25 -0.75 120.00 70.65 4.57 22.78 28057.86 Avago Tech 121.02 -0.85 150.50 100.00 1.20 26.07 33459.39 Lyondell 74.50 -1.22 107.32 69.10 3.80 8.36 33483.56
CmwBkAu 72.87 -3.51 96.69 70.15 8.11 13.78 88064.36 France (€) Canon 3211 -160.00 4539 3162 4.56 17.47 37335.15 H&M 261.20 0.20 368.50 259.80 3.48 21.49 51509.61 BakerHu 42.10 -0.72 70.45 37.58 1.54 -70.59 18359.25 Marathon Ptl 30.52 -0.21 60.38 29.24 3.35 5.05 16266.37
CSL 102.58 -2.69 108.68 81.48 1.36 26.95 33600.98 Airbus Grpe 51.22 0.09 68.50 47.51 2.21 14.99 45493.63 CntJpRwy 21700 -780.00 24800 18255 0.51 15.92 38969.58 Investor 259.40 -0.80 363.40 258.00 3.32 13.17 23546.8 BankAm 12.25 -0.03 18.48 11.96 1.56 9.60 127500.81 Marsh&M♦ 54.72 -0.28 59.99 50.81 2.55 20.85 28544.59
NatAusBk 24.90 -1.25 39.71 24.84 10.70 10.74 46487.36 AirLiquide 93.15 0.75 123.95 90.77 2.48 20.11 36263.26 Denso 4208 -298.00 6548 4200 2.68 14.12 32431.01 Nordea Bk 77.75 -1.40 115.50 77.25 7.14 9.45 37518.75 Baxter 36.16 0.16 43.44 32.18 4.43 11.33 19780.16 MasterCard 82.65 2.00 101.76 74.61 0.74 26.59 90934.3
Telstra 5.61 -0.06 6.66 5.06 7.64 16.35 48541.6 AXA 19.04 -0.55 26.02 18.80 4.53 10.05 52236.04 EastJpRwy 10470 -405.00 12815 9168 1.09 21.19 35824.91 SEB 78.40 -4.00 111.50 75.95 5.80 10.22 20271.13 BB & T 31.31 -0.02 41.90 30.72 3.12 12.13 24426.51 McDonald's 116.89 0.84 124.83 87.50 2.78 26.48 107327.29
Wesfarmers 42.85 -0.40 46.95 36.65 7.70 19.86 34152.23 BNP Parib 37.90 -1.40 61.00 37.19 3.74 6.97 53423.96 Fanuc 15850 -530.00 28575 15420 4.58 17.84 28455.97 SvnskaHn 101.35 1.05 426.00 95.85 3.93 13.81 22603.74 BectonDick 132.84 -0.04 157.50 128.87 1.82 41.72 28137.71 McGraw Hill 83.03 -0.34 109.13 78.55 1.49-236.52 22443.01
Westpc 28.70 -1.56 40.07 28.70 8.68 12.50 67757.6 ChristianDior 155.05 -4.05 195.35 140.80 1.84 12.91 31866.61 FastRetail 32870-2200.00 61970 32710 0.95 41.94 30395.27 Swedbank 156.50 -10.80 223.90 154.30 6.94 11.60 21108.69 BerkshHat 189610.29-1644.75 225820 186900 - 14.31 153798.4 McKesson 148.73 -2.73 243.61 148.31 0.69 15.85 33997.74
Woolworths 23.10 -0.66 34.71 22.42 8.60 13.56 20778.56 Cred Agr 7.84 -0.37 14.49 7.69 4.21 17.75 23399.06 Fuji Hvy Ind 3850 -338.00 5223 3669 2.59 9.59 26275.25 TeliaSonera 37.91 -0.19 55.85 37.54 7.57 11.83 19559.08 Biogen 248.09 -2.68 480.18 243.85 - 16.45 54250.51 Medtronic 71.96 -0.67 79.50 55.54 1.79 43.92 101186.97
Belgium (€) Danone 59.58 -0.67 67.74 51.73 2.28 43.35 44132.04 Hitachi 465.90 -29.40 858.00 465.10 2.36 9.97 19631.35 Volvo 77.30 -0.40 120.50 72.20 3.71 17.25 14947.89 BkNYMeln♦ 33.25 -0.05 45.45 32.42 1.96 15.05 36340.67 Merck 48.80 -0.03 61.70 45.69 3.53 13.53 136319.32
AnBshInBv 103.20 0.25 124.20 87.73 2.74 21.95 187704.95 EDF 11.02 -0.53 24.89 10.96 10.30 6.38 23920.04 HondaMtr 2918 -211.00 4499 2911 2.83 10.79 46079.23 Switzerland (SFr) BlackRock 289.12 -4.35 382.84 275.00 2.80 15.54 47412.7 Metlife♦ 36.82 -0.33 58.23 35.80 3.77 7.46 40930.09
KBC Grp 45.21 -1.29 66.00 44.15 4.18 7.90 21374.59 Engie SA 13.88 -0.03 19.88 13.61 6.54 41.05 38214.42 JapanTob 4540 -103.00 4850 3455.5 2.06 21.54 79156.14 ABB 16.53 -0.37 22.16 15.94 - 16.51 39444.06 Boeing 118.81 -0.67 158.83 115.02 2.78 15.61 79597.41 Microsoft 49.63 0.22 56.85 39.72 2.55 35.93 396400.19
Esslr Intl 104.55 -1.05 125.15 93.87 0.89 40.23 25594.06 KDDI 3075 -125.00 8550 2519 1.79 17.57 72133.98 CredSuisse 13.01 -1.19 28.94 12.97 5.02 6.44 26251.74 BrisMySq 60.29 -0.43 70.87 51.82 2.35 59.56 100580.98 Mnstr Bvrg 119.46 1.74 160.50 115.26 - 43.30 24217.23
Brazil (R$)
Hermes Intl 297.95 -9.95 365.55 280.10 0.90 37.13 35573.46 Keyence 52910-5100.00 70100 50700 0.35 28.40 28044.89 Nestle 71.70 -1.15 77.00 65.70 2.93 16.62 235666.5 Broadcom 54.67 0.17 58.51 40.33 0.92 25.37 30669.87 MondelezInt 36.54 0.20 48.58 33.97 1.62 7.46 58068.18
Ambev♦ 18.14 -0.22 20.46 15.99 8.46 24.12 73029.39
LOreal 147.95 -2.10 181.30 140.40 1.66 31.08 93654.01 MitsbCp 1734 -135.50 2837 1722 2.91 10.18 24036.21 Novartis 70.40 -1.35 103.20 70.00 3.69 25.64 194278.97 CapOne 61.84 0.95 92.10 58.49 2.16 9.09 32901.68 Monsanto 90.27 -0.98 126.00 81.22 2.14 24.71 39750.89
Bradesco♦ 20.88 -0.67 32.40 17.90 4.35 7.81 13500.71
LVMH 147.75 -3.95 176.60 130.75 1.97 14.37 84715.55 MitsubEst 2135 -118.00 2975 2048 0.64 42.46 25878.28 Richemont 62.50 -1.20 87.55 60.85 2.43 21.25 33632.29 CardinalHlth 75.62 -0.54 91.91 74.73 1.95 18.74 24903.85 MorganStly♦ 22.94 0.27 41.04 21.76 2.08 14.75 44416.98
Cielo 31.07 -1.98 46.27 30.55 2.13 17.29 15014.55
Nmrcble-SFR 29.58 -1.01 60.01 27.05 - -38.54 14660.88 MitsubishiEle 1074 -69.00 1718 1037 2.30 10.96 20103.69 Roche 241.80 -3.30 283.90 240.10 3.15 24.69 175124.64 Carnival 42.81 0.89 55.77 40.82 2.47 19.72 24733.25 MylanNV 49.85 -0.60 76.69 37.59 - 29.10 24513.59
ItauHldFin 22.91 0.25 32.66 21.49 5.20 5.49 17880.37
Orange 14.75 -0.06 16.98 12.21 3.69 42.78 44187.54 MitsuiFud 2519 -145.50 3879 2419.5 1.02 22.60 21771.41 Swiss Re 86.10 -1.80 99.75 76.85 4.87 36.17 32903.32 Caterpillar♦ 63.51 -1.07 89.62 56.36 4.32 13.71 36977.67 Netflix 86.61 3.29 133.27 58.46 - 313.63 37076.11
Petrobras 6.39 -0.28 16.26 5.67 - -2.57 12181.21
PernodRic 98.26 -2.04 117.75 88.00 1.51 33.42 29495.62 MitUFJFin 491.20 -47.00 936.80 488.00 3.43 5.06 60672.45 Swisscom 466.00 -8.60 580.50 463.20 4.50 18.62 24885.01 CBS 43.05 -1.31 63.95 38.51 1.33 14.54 18670.9 NextEraE 115.66 1.49 115.95 93.74 2.51 17.35 53265.58
Vale 10.23 -0.11 27.89 8.60 22.25 -4.60 8429.97
Renault 68.99 -0.23 100.25 59.59 2.50 8.22 23073.57 Mizuho Fin 170.30 -11.30 280.40 168.30 4.26 6.23 36933.43 Syngent 387.40 -10.70 435.20 288.50 2.70 27.55 37118.85 Celgene 98.70 -0.48 140.72 92.98 - 51.73 78026.95 Nike 55.54 0.50 68.20 45.35 1.25 28.06 74973.26
Canada (C$) Murata Mfg 12550-1415.00 22220 12520 1.46 13.52 24645.26 CharlesSch 23.27 -0.34 35.72 22.85 0.99 24.51 30635.5 NorfolkS♦ 70.44 -0.05 112.05 64.51 3.29 13.96 21031.25
Safran 51.04 -0.10 72.45 50.11 2.13 -17.07 24072.55 UBS 13.73 -0.82 22.57 13.58 5.19 8.94 54489.94
BCE 57.51 -0.72 59.30 51.56 4.40 19.16 36023.8 NipponTT 5101 -207.00 5419 3581.5 1.75 17.12 93223.85 ChevrnTx 83.60 -2.39 112.93 69.58 4.90 18.98 157338.27 Northrop 187.19 1.57 193.99 152.31 1.63 18.34 33870.76
Sanofi 68.94 -0.97 101.10 67.83 3.75 20.74 101802.43 Zurich Fin 199.40 -7.50 334.60 197.00 - 10.49 30918.43
BkMontrl♦ 70.87 -2.66 80.76 64.01 4.53 10.89 32988.51 Nissan Mt 1003.5 -78.00 1350 995.20 3.42 8.41 39547.89 Chubb 108.82 -0.07 134.49 94.35 2.32 13.90 35277.43 NXP 65.55 1.55 114.00 61.61 - 23.68 16502.11
Sant Gbn 32.44 -0.76 44.84 31.71 1.73 23.98 20576.79 Taiwan (NT$)
BkNvaS 53.23 -2.45 67.72 51.17 3.76 9.60 46368.61 Nomura 510.00 -50.80 909.20 494.00 4.23 8.65 16995.08 Cigna 126.30 1.34 170.68 110.76 0.03 16.18 32538.4 Occid Pet 64.94 -1.25 83.74 58.24 4.33 -8.59 49597.01
Schneider 48.77 -0.35 75.29 45.57 3.57 18.59 32406.68 Chunghwa Telecom 103.00 - 103.50 93.10 4.56 20.82 23992.7
Brookfield 38.26 -0.24 48.64 37.90 1.59 10.35 27348.91 Nppn Stl 1956.5 -130.00 3505 1940.5 3.04 8.78 16208.73 Cisco 22.73 -0.21 30.31 22.47 3.38 12.98 115605.55 Oracle 35.02 -0.59 45.24 33.13 1.57 17.49 147126.72
SocGen 28.83 -1.32 48.77 28.36 3.93 8.40 26283.19 HonHaiPrc 76.60 -1.80 99.70 72.70 4.57 8.26 35970.1
CanadPcR 169.29 -0.15 245.05 140.02 0.82 19.13 18737.42 NTTDCMo 2732.5 -106.50 2888 1961 2.40 21.78 97326.93 Citigroup♦ 37.47 -0.34 60.95 36.68 0.31 8.83 111622.77 Pepsico 97.73 0.21 103.44 76.48 2.66 30.37 142378.03
Total 36.81 -1.37 50.30 36.16 6.37 106.89 102147.24 MediaTek 200.00 -12.00 480.00 193.50 10.64 10.13 9438.24
CanImp 85.17 -3.25 102.90 82.19 5.00 9.69 24497.78 Panasonic 858.80 -82.40 1853.5 858.80 1.66 125.21 18365.3 CME Grp 92.77 2.58 100.87 81.87 2.03 25.95 31377.9 Perrigo 137.74 -0.08 215.73 135.87 0.33 142.67 20165.42
UnibailR 217.65 -4.55 262.00 212.30 4.06 13.62 24294.02 TaiwanSem 146.00 3.50 155.00 112.50 2.98 12.87 113680.35
CanNatRs 27.73 -1.49 42.46 21.27 3.25 71.52 21966.24 Seven & I 4949 -216.00 5998 4344.5 1.36 28.56 38244.28 Coca-Cola 42.81 0.16 43.91 36.56 2.89 28.72 186180.05 Pfizer♦ 28.62 0.06 36.46 28.25 3.68 22.48 176201.73
Vinci 59.23 -0.13 64.00 49.05 2.71 18.63 39477.1
CanNatRy 75.25 0.10 88.89 66.62 1.56 17.97 42946.14 ShnEtsuCh 5567 -415.00 8310 5567 1.73 18.81 20970.6 Thailand (THB) Cognizant 52.55 -1.50 69.80 52.04 - 21.56 32029.54 Phillips66 74.75 -1.54 94.12 69.79 2.71 9.13 39871.99
Vivendi 16.80 0.04 24.83 16.30 11.24-206.67 25998.14
Enbridge 44.35 -2.08 66.14 40.03 3.88-116.02 27841.59 Softbank 4770 -334.00 7827 4540 0.77 11.09 49927.2 PTT Explor 241.00 1.00 370.00 197.00 4.27 -77.40 19400.22 ColgtPlm♦ 65.59 -0.48 71.56 50.84 2.16 25.38 58829.12 PhilMorris 90.27 0.55 90.54 75.27 4.26 20.29 139854.92
GtWesLif 33.05 -0.82 37.70 30.42 3.83 12.24 23757.31 Germany (€)
Sony 2388.5 -180.50 3970 2356.5 0.88 23.71 26285.91 United Arab Emirates (Dhs) Comcast 57.68 -1.73 64.99 50.01 1.70 18.10 120800.82 PNCFin 81.66 -0.11 100.52 80.72 2.32 11.50 42293.38
ImpOil 41.94 -1.60 55.37 37.25 1.12 21.40 25724.22 Allianz 131.35 -3.75 170.15 130.50 4.92 9.85 67887.66
SumitomoF 3106 -306.00 5770 3091 4.68 8.12 38288.36 Emirtestele 15.90 -0.10 16.60 10.23 3.87 18.00 34225.28 ConocPhil 32.98 -1.45 70.11 31.59 8.50 -42.08 40718.49 PPG Inds 90.12 0.47 118.95 82.93 1.47 22.04 24266.54
Manulife 17.33 -0.91 24.20 17.13 3.70 13.91 24729.32 BASF 57.40 -0.44 97.22 57.03 4.60 11.03 59624.62
Takeda Ph 5596 -249.00 6657 5086 2.95 -31.39 38548.77 United Kingdom (p) Corning 18.50 0.54 25.05 15.42 2.38 12.64 21885.21 Praxair 103.01 1.08 130.38 95.60 2.59 21.95 29341.94
Potash 21.45 -0.74 47.03 20.65 8.99 9.20 12984.87 Bayer 93.17 -1.34 146.45 92.35 2.28 21.92 87136.23
TokioMarine 3701 -240.00 5504 3666 2.66 16.10 24440.74 AscBrFd 3039 -6.00 3606 2705.75 1.12 42.59 34849.39 Costco 146.87 -0.16 169.73 117.03 1.02 28.61 64587.89 Prec Cast 234.95 0.10 234.99 187.00 0.05 26.36 32326.36
RylBkC 66.77 -2.52 81.53 64.95 4.57 10.04 71826.8 BMW 67.83 -1.47 123.75 66.86 4.04 8.38 46180.59
Toyota 6154 -401.00 8783 6148 3.43 8.83 179077.99 AstraZen 3914.5 8.50 4931.68 3746 4.74 44.22 71679.9 CrownCstl 81.00 -0.70 89.44 75.71 3.87 55.25 27035.48 Priceline 988.56 14.76 1476.52 954.02 - 21.60 49214.36
Suncor En 29.84 -1.54 40.93 27.32 4.05-3680.24 31219.2 Continental 179.35 -0.25 234.25 171.30 1.71 14.28 40568.5
Mexico (Mex$) Aviva 407.20 -6.60 578.68 401.95 4.44 10.66 23880.01 CSX 23.53 0.52 37.67 21.33 2.76 12.23 22940.45 ProctGmbl♦ 82.10 -0.52 86.39 65.02 3.15 27.10 222044.83
ThmReut 48.96 -0.96 55.92 47.25 3.60 14.72 27089.2 Daimler 59.15 -0.21 96.07 57.72 3.91 8.68 71567.71
AmerMvl 12.60 -0.31 17.17 10.87 2.11 21.67 28127.23 Barclays 156.25 -7.65 289.90 154.30 4.16 68.98 38038.93 CVS 90.66 1.01 113.65 81.37 1.40 21.31 100389.37 Prudntl 62.35 -0.98 92.60 61.39 3.56 8.51 27995.15
TntoDom 49.77 -1.74 56.48 47.75 3.98 11.92 66840.26 Deut Bank 13.23 -0.59 33.42 13.03 5.35 -4.59 20637.39
FEMSA UBD 164.29 -0.32 172.92 128.03 0.71 30.15 31231.73 BG 1028 -26.50 1301.62 808.80 1.86 -19.85 50901.95 Danaher 84.91 0.77 97.62 81.25 0.57 24.67 58187.58 PublStor 232.14 3.16 257.98 182.08 2.55 40.71 40136.05
TrnCan 47.29 -1.30 59.50 40.58 4.25 20.35 24044.16 Deut Tlkm 14.45 0.15 17.63 13.39 3.27 31.58 75257.12
WalMrtMex 45.54 -0.81 47.44 32.00 1.26 32.83 42247.91 BP 334.45 -9.45 499.25 252.55 8.05 -12.22 89051.9 Deere 76.61 -0.46 98.23 70.16 2.94 14.16 24262.39 Qualcomm 43.49 -0.41 74.09 42.83 4.20 14.73 65005.18
ValeantPh 119.50 -5.38 347.84 92.65 - 51.69 29504.54 DeutsPost 20.00 -0.11 31.19 19.64 - 17.72 27395.76
BrAmTob 3736.5 5.50 3931.5 3231.5 3.96 17.35 100897.7 Delphi 57.53 0.52 90.57 55.59 1.71 14.14 16113.47 Raytheon 126.17 0.32 129.99 95.32 1.98 19.49 37989.53
E.ON 8.73 -0.34 14.85 7.08 1.51 -1.99 19751.79 Netherlands (€)
China (HK$) BSkyB 980.00 2.00 1180 899.50 3.35 26.83 24401.7 Delta 41.61 0.84 52.77 34.61 1.06 7.52 32393.74 Regen Pharm 367.32 -23.21 605.93 350.26 - 75.93 37521.79
Fresenius Med 72.79 0.43 83.17 62.65 0.99 25.02 25755.54 Altice 11.24 -0.60 47.73 9.98 - 213.07 10434.51
AgricBkCh 2.72 0.05 4.55 2.63 7.96 4.22 10729.39 BT 459.95 5.15 502.60 404.00 2.48 17.33 66370.6 DiscFinServ♦ 45.71 0.60 61.50 43.73 2.18 9.86 19540.28 ReynoldsAm 47.91 0.83 50.42 33.71 2.72 18.88 68468.25
Fresenius SE 53.05 -0.35 70.00 46.75 0.78 24.49 32694.86 ASML Hld 75.96 -0.52 104.85 70.25 0.87 25.10 37226.37
Bk China 3.06 0.05 5.68 2.91 7.39 4.66 32836.8 Compass♦ 1206 15.00 1238 963.00 2.28 23.10 28722.43 Disney 91.13 -0.99 122.08 89.04 1.90 19.43 149602.37 Salesforce 56.70 2.65 82.90 52.60 - -450.71 37648.8
HenkelKgaA 78.26 -2.69 99.44 75.76 1.56 20.31 22994.11 Heineken 75.18 0.38 85.90 63.71 1.33 23.51 48974.65
BkofComm 4.51 0.03 8.61 4.40 7.12 4.28 20263.47 Diageo 1783 1.00 1979.5 1592.5 3.16 18.14 64992.32 DominRes 70.25 0.76 78.15 64.54 3.46 24.33 41819.21 Schlmbrg 68.23 -1.55 95.13 59.60 2.88 42.59 85721.99
Linde 115.85 -1.50 195.55 114.05 2.57 20.00 24334.93 ING 9.41 -0.48 16.00 9.30 3.61 12.10 41192.08
BOE Tech 1.87 0.15 4.78 1.17 1.98 27.34 47.74 GlaxoSmh 1360.5 -2.00 1645 1227.5 5.88 6.74 95973.98 DowChem 46.58 0.35 57.10 35.11 3.45 13.13 53944.39 Shrwin-Will 250.61 3.98 294.35 218.27 0.98 25.11 23331.92
MuenchRkv 166.05 -3.30 206.50 156.00 4.41 9.48 31332.42 Unilever♦ 37.38 -0.24 42.84 32.86 2.81 24.32 72490.16
Ch Coms Cons 6.72 -0.06 17.00 5.77 2.99 6.68 3818.1 Glencore 94.44 -8.36 318.46 66.67 12.12-219.63 19691.43 DukeEner 78.72 -0.45 84.29 65.50 3.90 23.92 54185.68 SimonProp 177.00 -5.49 208.14 170.99 3.11 34.61 54765.45
SAP 66.38 0.40 75.75 53.91 1.56 27.24 92227.08 Norway (Kr)
Ch Evrbrght 3.33 0.03 5.65 3.22 6.65 4.51 2935.22 HSBC 432.50 -5.95 674.57 428.80 7.75 8.53 123328.89 DuPont 58.77 0.62 76.61 47.11 2.88 28.61 51506.44 SouthCpr 25.06 -1.02 33.31 21.55 1.60 20.57 19681.53
Siemens 81.99 -0.56 106.35 77.91 3.80 13.79 81692.35 DNB 94.95 -2.05 143.00 90.10 4.01 6.97 18057.73
Ch Rail Cons 7.50 -0.08 17.70 6.72 2.38 6.73 1998.35 ImpTob♦ 3499.5 -99.00 3809 2921 3.77 19.78 48593.74 Eaton 54.59 -0.52 73.82 46.19 3.75 13.22 25264.25 Starbucks♦ 54.15 0.01 64.00 42.05 1.23 33.80 80039.12
Volkswgn 109.50 -2.20 254.50 95.00 4.14 9.22 36543.73 Statoil 117.20 -1.60 161.70 97.25 5.90 -10.43 43634.95
Ch Rail Gp 5.04 -0.06 12.30 4.21 1.84 8.70 2721.21 LlydsBkg 58.13 -1.23 89.35 57.00 2.58 34.66 60165.54 eBay 22.36 -0.12 29.83 21.52 - 14.22 26355.85 StateSt 53.00 -0.57 81.26 50.73 2.31 12.97 21384.76
ChConstBk 4.64 0.06 7.98 4.42 7.72 4.31 143154.09 Hong Kong (HK$) Telenor 131.80 -0.20 186.10 130.70 2.77 33.56 23106.24 Ecolab 105.49 1.87 122.48 99.99 1.20 29.57 31151.57 Stryker 96.46 0.40 105.34 86.68 1.37 32.75 36222.87
Natl Grid 943.70 -5.90 992.50 806.40 4.54 16.45 51221.57
China Vanke RMB 24.43 - 24.43 10.93 2.05 16.75 36592.53 AIA 39.40 -0.50 58.20 37.10 1.05 19.03 60917.78 Qatar (QR) EMC 24.13 -0.07 29.24 22.66 1.82 21.15 46784.14 Sychrony Fin 24.89 0.41 36.40 24.08 - 9.90 20753.93
Prudential 1126 -35.50 1761.5 1045.99 3.28 11.46 41958.67
ChinaCitic 4.37 0.01 7.40 4.22 - 4.24 8345.77 BOC Hold 19.72 0.24 33.70 19.22 5.26 8.70 26755.69 QatarNtBk 139.90 - 173.75 122.50 4.35 10.70 26888.28 Emerson 46.52 -0.54 62.75 41.25 3.98 12.44 29917.75 Target 69.51 -0.49 85.81 66.46 2.86 16.59 42821.75
RBS 225.60 -5.10 414.00 222.60 - -10.12 37988.46
ChinaLife 17.60 0.46 41.00 17.12 2.66 10.96 16806.41 Ch OSLnd&Inv 22.05 0.25 34.05 20.45 2.31 6.56 27901.8 EOG Res 65.37 -3.06 101.36 57.15 0.98 -9.82 35936.08 TE Connect 51.94 -0.46 73.73 51.70 2.42 19.00 19435.8
Russia (RUB) ReckittB 5954 -36.00 6450 5403 2.33 25.30 60944.82
ChinaMBank 14.10 0.20 26.85 13.86 5.66 5.18 8306.87 ChngKng 40.20 0.40 77.55 38.20 - 9.15 19911.2 EquityResTP 71.54 -0.69 82.53 61.90 2.88 32.44 26059.29 Telsa Mtrs 149.61 1.62 286.65 141.05 - -29.35 19591.63
Gzprm neft 132.70 -0.80 166.94 122.75 6.23 9.61 39891.76 RELX 1149 23.00 1239 988.50 2.26 26.39 33952.64
ChinaMob 84.60 -1.05 118.00 79.00 3.18 13.75 222292.49 Citic Ltd 10.60 -0.12 16.40 10.30 1.88 5.41 39570.61 Exelon 32.06 -0.30 35.10 25.09 3.70 14.90 29481.23 TexasInstr 50.49 -0.41 59.99 43.49 2.58 18.97 51217.67
Lukoil 2387.5 -95.00 3297.7 2040.1 8.36 18.41 25786.92 RioTinto 1751 -89.50 3280 1557 7.79 17.42 34850.48
ChinaPcIns 26.35 1.05 47.10 24.80 2.20 13.31 9384.48 Citic Secs 14.68 -0.02 40.50 12.82 2.29 6.78 5497.69 ExpScripts 66.75 0.03 94.61 65.55 - 21.67 45141.42 TheTrvelers 105.09 -0.51 116.48 95.21 2.11 9.76 31970.35
MmcNrlskNckl 8650 -220.00 12247 7840 17.83 9.34 17381.88 RollsRoyce 512.50 -2.50 1061 497.00 4.51 -37.69 13649.59
ChMinsheng 6.66 0.16 11.88 6.30 3.30 4.44 5925.85 CK Hutchison 95.15 -1.75 174.90 92.00 3.55 4.05 47128.15 ExxonMb♦ 79.41 -1.02 93.45 66.55 3.42 17.53 330578.95 ThrmoFshr 123.81 1.87 143.65 117.10 0.46 26.33 49412.29
Novatek 604.90 0.80 646.30 410.80 11.12 48.02 23322.69 RylDShlA 1461 -61.00 2195.5 1256 8.60 88.31 84458.16
ChMrchSecs RMB 14.59 -0.62 40.00 13.85 2.83 8.47 10667.06 CNOOC 7.87 0.17 13.78 6.41 6.68 7.36 45091.25 Facebook 100.46 0.71 117.59 72.00 - 79.49 230549.66 TimeWrnr 64.58 -2.72 91.34 62.94 2.02 15.51 52668.21
Rosneft 268.60 -7.45 294.20 214.80 3.51 6.31 36148.16 SABMill 4122 -8.00 4206.5 2773 1.80 34.15 96747.65
Chna Utd Coms RMB 4.04 -0.08 10.74 3.86 1.65 27.78 13035.06 HangSeng 129.00 0.90 162.10 121.10 4.02 9.97 31649.16 Fedex 129.23 -1.10 185.19 119.71 0.67 34.27 35617.76 TimeWrnrC 177.72 -0.01 194.22 144.88 2.02 27.77 50329.87
Sberbank 93.89 -0.81 110.70 60.57 0.55 8.81 25737.04 Shire 3480 -18.00 5870 3440.79 0.43 10.27 29870.92
ChShenEgy 11.38 0.10 22.50 10.12 7.62 8.14 4963.19 HK Exc&Clr 167.00 1.50 311.40 160.10 3.01 25.92 25899.81 FordMtr♦■ 11.45 -0.14 16.74 10.44 4.80 10.04 44629.56 TJX Cos♦ 69.40 1.59 76.93 63.53 1.04 22.55 46465.32
Surgutneftegas 36.59 -0.15 39.80 30.31 - 1.21 16597.23 StandCh 403.30 -23.70 1166 398.05 12.71 9.43 19150.37
ChShpbldng RMB 6.13 -0.08 20.19 5.67 0.61-378.93 16756.48 MTR 35.45 -0.10 40.00 33.10 2.74 14.06 26654.1 Franklin 31.79 -0.67 54.85 31.17 1.95 10.34 18840.22 T-MobileUS 33.37 -0.59 43.43 30.73 - 57.77 27231.17
Saudi Arabia (SR) Tesco 173.80 1.20 252.52 137.00 0.67 -2.50 20495.04
ChStConEng RMB 5.13 -0.04 12.52 4.88 3.31 6.65 23348.1 SandsCh♦ 24.95 0.35 39.85 20.75 7.38 14.68 25836.13 GenDyn 131.67 -0.59 153.76 121.61 2.01 14.76 41624.59 UnionPac 76.85 0.82 124.52 67.06 2.81 14.25 65046.94
AlRajhiBnk 51.49 - 69.00 44.70 3.47 13.65 22309.37 Vodafone 201.15 0.95 258.00 199.01 5.58 -37.67 77375.29
ChUncHK 8.55 -0.01 16.00 7.87 2.78 18.76 26274.74 SHK Props 82.70 0.55 137.60 79.40 2.69 8.13 30706.64 GenElectric 28.14 -0.04 31.49 19.37 3.13 57.04 284423.44 UPS B 98.28 0.98 107.32 87.30 2.78 23.61 68416.9
Natnlcombnk 39.78 -0.21 72.75 36.60 1.92 9.43 21156.26 WPP 1383 45.00 1616 1273 2.76 14.29 25937.32
CNNC Intl RMB 7.07 -0.06 14.38 4.07 - 20.12 4187.46 Tencent 143.90 2.00 171.00 124.00 0.23 41.47 173656.25 GenMills 55.35 -0.37 59.87 47.43 3.01 23.76 32841.66 USBancorp 39.03 -0.51 46.26 37.97 2.45 12.93 68261.63
SaudiBasic 66.71 0.22 110.50 59.50 7.36 8.86 53360.88 United States of America ($)
CSR 7.09 -0.12 20.70 6.68 - 16.29 3976.97 India (Rs) GenMotors 28.29 -0.40 39.00 24.62 4.79 4.87 43685.97 UtdHlthcre 110.24 0.22 126.21 95.00 1.52 18.29 105070.67
SaudiTelec 63.23 -0.23 73.25 52.75 6.05 13.52 33718.18 21stC Fox A 23.92 -0.67 35.85 22.66 1.20 6.51 28004.39
Daqin RMB 6.72 -0.04 15.15 6.57 7.06 7.16 15207.39 Bhartiartl 312.25 - 452.45 282.30 0.72 22.70 18365.18 GileadSci 85.97 0.71 123.37 81.89 0.96 8.26 123898.26 UtdTech 86.90 0.12 124.45 83.39 2.76 14.27 77082.12
Singapore (S$) 3M 154.48 0.58 170.50 134.00 2.43 20.90 95115.33
Gree Elec Apl 0.18 0.00 0.45 0.13 - -2.06 311.12 HDFC Bk 1026.05 - 1128 944.20 0.79 22.51 38135.77 GoldmSchs 147.68 -1.57 218.77 145.10 1.62 10.14 62990.86 ValeroEngy♦ 54.26 -0.56 73.88 51.68 2.60 6.31 26126.38
DBS 13.60 0.23 21.50 13.17 4.14 10.97 24168.02 AbbottLb♦ 36.96 -0.50 51.74 36.00 2.43 22.97 55133.97
GuosenSec RMB 14.55 -0.50 34.94 13.76 1.36 8.92 4861.57 Hind Unilevr 826.35 - 981.00 766.40 1.73 38.68 26309.34 Halliburton 29.49 -1.34 50.20 27.64 2.40 -38.47 25312.51 Verizon 49.57 -1.18 51.20 38.06 4.27 20.78 201673.7
JardnMt US$ 53.70 1.50 67.00 45.00 2.47 13.67 37717.31 Abbvie♦ 53.15 0.26 71.60 45.45 3.47 32.15 86886.8
HaitongSecs 11.28 -0.08 27.90 10.00 2.64 7.19 4935.49 HsngDevFin 1159.9 - 1402.3 1093.2 1.31 19.54 26942.88 HCA Hold 66.25 -0.52 95.49 43.91 - 14.49 27007.99 VertexPharm 79.92 -2.08 143.45 79.46 - -30.46 19637.73
JardnStr US$ 27.92 0.92 35.93 25.24 0.88 10.83 31076.32 Accenture 92.98 -2.09 109.86 86.40 2.19 21.48 74962.65
Hngzh HikVDT RMB 26.92 -0.25 56.48 23.72 1.47 19.38 12931.21 ICICI Bk 209.40 - 362.00 200.50 2.36 9.52 17908.76 Hew-Pack 9.29 -0.08 17.64 9.21 6.78 3.99 16646.27 VF Cp 56.37 -0.63 77.83 52.21 2.17 24.56 24031.04
OCBC 7.69 0.14 10.92 7.48 4.39 9.10 22489.03 Adobe 74.91 -0.03 96.42 71.27 - 62.71 37329.93
Hunng Pwr 6.15 -0.16 11.90 5.89 7.32 6.01 3709.64 Infosys 1107.65 - 2336 932.65 3.71 18.79 37249.56 HiltonWwde 17.70 0.22 31.60 16.16 0.38 24.45 17477.9 Viacom 35.75 -6.10 73.52 35.27 3.91 7.90 12411.21
SingTel 3.70 0.22 4.57 3.38 4.44 16.22 41934.48 AEP♦ 62.44 -0.05 63.63 52.29 3.25 18.12 30646.64
IM Baotou Stl RMB 2.84 -0.04 7.50 2.66 - -36.75 6805.28 ITC 312.40 - 409.95 294.00 2.04 24.56 36947.69 HomeDep 112.93 1.08 135.47 92.17 1.86 22.57 143181.83 Visa Inc 68.43 0.66 81.01 60.00 0.72 25.41 131326.13
UOB 17.87 0.42 25.05 17.01 4.47 9.48 20417.46 Aetna 96.20 1.89 134.40 92.42 0.97 15.43 33544.07
In&CmBkCh 3.99 0.05 7.10 3.77 7.63 4.42 44441.15 L&T 1114.2 - 1893.8 1069.1 1.36 20.49 15266.08 Honywell 101.72 0.19 107.41 87.00 1.95 18.63 78390.88 Walgreen 74.21 1.30 97.30 71.50 1.81 18.76 80053.81
Aflac 57.32 -0.68 66.53 51.41 2.60 10.49 24460.66
IndstrlBk RMB 14.42 0.04 21.42 11.90 3.91 5.57 41819.69 OilNatGas 218.15 - 359.10 205.95 4.49 9.61 27460.9 South Africa (R) HumanaInc 159.50 2.54 219.79 146.64 0.68 19.19 23641.72 WalMartSto 65.19 -1.71 87.41 56.30 2.81 14.90 208731.42
AirProd 132.22 1.47 158.20 114.64 2.41 22.23 28513.29
Kweichow RMB 203.87 -1.12 290.00 166.20 2.12 16.12 38983.34 RelianceIn 957.50 - 1089.75 796.45 1.05 10.49 45640.5 Firstrand 43.91 -0.59 58.47 34.08 5.27 9.11 15348.96 IBM♦ 124.74 -2.24 176.30 118.00 3.68 8.94 121011.54 WellsFargo♦ 46.39 -0.11 58.77 45.36 2.99 11.73 238136.54
Alexion 136.68 -2.47 208.88 130.51 - 208.00 30797.33
Midea 1.76 -0.01 2.68 1.65 5.26 11.96 48.57 SBI NewA 167.05 - 315.00 160.20 2.07 6.97 19079.97 MTN Grp 141.38 1.43 250.00 109.56 10.72 6.97 16258.98 IllinoisTool 90.01 -0.25 100.14 78.79 2.13 18.53 32717.89 Williams Cos 11.39 0.23 61.38 10.22 19.98 26.60 8539.82
Allegran 266.99 0.69 340.34 237.50 - -37.89 105227.31
New Ch Life Ins 24.55 - 56.55 24.20 1.01 7.05 3257.89 SunPhrmInds 854.05 - 1200.8 704.00 - 72.69 30241.49 Naspers N 1733.49 -116.51 2270 1521.98 0.30 49.09 47300.47 Illumina 138.65 3.28 242.37 130.00 - 42.33 20298.36 Yahoo 26.92 -0.13 46.17 26.48 - 110.22 25422.04
Allstate 62.53 -0.80 72.51 54.12 1.80 11.39 24218.26
PetroChina 4.71 0.10 11.04 4.16 3.98 17.06 12752.6 Tata Cons 2281.4 - 2812.1 2243 1.77 20.60 66141.91 South Korea (KRW) Intcntl Exch 241.26 2.28 268.89 220.28 1.18 21.55 28682.85 Yum!Brnds 66.78 -0.65 95.90 66.35 2.35 33.38 28798.32
Alphabet 706.83 2.67 810.35 527.55 - 35.87 205919.22
PingAnIns 33.85 0.55 62.90 32.40 2.38 9.27 32351.46 Indonesia (Rp) HyundMobis 246000-2000.00 272000 185500 1.18 12.85 19997.99 Intel♦ 28.68 -0.14 35.59 24.87 3.15 12.84 135340.92 Venezuela ()
Altria 60.78 0.66 61.74 47.31 3.34 23.92 119170.1
PngAnBnk RMB 9.92 -0.03 17.50 9.30 1.73 6.38 17824.24 Bk Cent Asia 13300 -125.00 15600 11000 0.99 20.91 24102.24 KoreaElePwr 52300-1500.00 54500 40800 0.92 2.85 28038.52 Intuit 90.30 -0.62 109.21 79.63 1.09 58.74 23839.59 Bco de Vnzla 100.00 - 143.95 30.00 - - 27015.81
Amazon 482.93 -5.17 696.44 365.65 - 393.29 227383.74
Pwr Cons Corp RMB 6.32 -0.01 20.00 5.93 1.56 12.58 3174.67 SK Hynix 28100 - 51700 25800 1.03 4.59 16580.11 John&John 101.46 -0.54 105.49 81.79 2.73 20.36 280734.1 Bco Provncl 3800 -200.00 4400 850.00 0.13 50.18 30351.44
Israel (ILS) AmerAir♦ 36.10 0.55 56.05 34.10 1.06 5.42 22751.6
SaicMtr RMB 18.39 -0.19 29.18 14.00 6.99 7.12 30863.87 SmsungEl 1164000 8000 1510000 1033000 1.70 8.83 141016.92 JohnsonCn 35.05 -0.35 54.52 33.62 3.00 16.67 22720.65 Mrcntl Srvcs 5300 - 5900 1350.5 0.14 41.00 23320.53
TevaPha 223.00 -5.20 275.90 214.70 2.18 29.25 58502.09 AmerExpr♦ 52.78 0.38 86.18 51.91 1.99 9.82 51948.5
ShenwanHong 0.14 0.00 0.41 0.12 - -2.18 44.28 Spain (€) JPMrgnCh 55.65 -0.90 70.61 50.07 2.89 9.91 204836.47
Italy (€) AmerIntGrp 51.97 -0.33 64.93 51.15 1.21 15.76 64287.54
ShgPdgBk RMB 18.38 1.08 20.12 11.91 4.07 7.03 52188.31 Kimb-Clark 129.70 0.27 130.88 103.04 2.57 81.66 47078.56 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.49 0.00 4.50 3.33 3.78 61.71 37157.84 BBVA 5.31 -0.26 9.77 5.28 2.84 14.31 38248.59 AmerTower 84.23 -1.18 104.12 83.91 1.93 65.76 35677.32
Sinopec Corp 4.38 0.04 7.79 3.86 5.39 21.19 14340.59 KinderM♦ 14.57 -0.35 44.71 11.20 12.21 28.40 32513.17 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 11.60 -0.48 17.66 11.55 7.81 -16.13 47677.1 BcoSantdr 3.38 -0.14 7.17 3.34 13.85 6.89 55177.58 Amgen 142.32 -0.68 181.81 130.09 2.00 17.78 107355.94
Sinopec Oil RMB 6.32 0.10 14.23 5.71 - -184.49 432.91 Kraft Heinz 70.58 -0.64 81.20 61.42 0.75 -48.40 85645.7 based on intraday trading over a rolling 52 week period.
Generali 11.38 -0.48 19.21 11.30 4.98 9.75 20037.35 CaixaBnk 2.45 -0.03 4.53 2.37 3.08 21.89 16130.71 Anadarko 37.91 -2.14 95.94 28.16 2.72 -3.45 19263.69
Denmark (kr) Iberdrola 6.08 -0.06 6.71 5.66 2.41 16.52 43580.75 Kroger 36.53 -0.30 42.75 27.32 0.98 19.17 35601.75 ♦ ex-dividend
IntSPaolo 2.15 -0.14 3.65 2.12 3.08 13.09 38491.67 Anthem 119.30 2.08 173.59 115.63 1.85 11.94 31135.34
DanskeBk 172.10 -8.50 218.00 161.20 3.02 26.94 26304.72 Inditex 27.38 -0.18 35.38 25.46 1.35 32.83 96491.05 L Brands 82.37 1.26 101.11 75.11 2.10 22.09 23840.71 ■ ex-capital redistribution
Luxottica 49.57 0.49 67.80 48.00 1.37 31.90 27114.77 Aon Cp♦ 92.63 -0.35 107.08 83.83 1.14 22.13 25372.92
MollerMrsk 8190 -380.00 16450 7550 3.35 7.95 13208.95 Repsol 8.63 -0.32 18.75 7.95 10.45 26.80 13672.45 LasVegasSd 39.75 -0.78 61.59 34.88 5.89 14.95 31698.68 # price at time of suspension
Unicred 2.77 -0.24 6.61 2.77 4.09 9.18 18693.62 Apple♦ 94.69 -0.32 134.54 92.00 2.11 10.26 525016.56
NovoB 307.80 -5.90 415.00 274.30 1.53 25.50 96205.78 Telefonica 8.66 -0.49 14.31 8.60 4.36 15.45 47658.14 LibertyGbl 31.11 -0.97 58.66 30.65 - -20.99 7861.98
ArcherDan 32.97 -0.33 53.31 29.86 3.13 11.91 19627.99
Lilly (E) 72.83 -1.36 92.85 68.31 2.61 34.46 80701.22

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
China Vanke 24.43 24.43 0.00 0.00 4.53 22.8 74.50 Prec Cast 234.95 234.85 0.10 0.04 - - 1.23 Feb 09 date Coupon S* M* F* price yield yield yield US Feb 09 date Coupon S* M* F* price yield yield yield US
Glencore 94.44 102.80 -8.36 -8.13 11.29 13.6 21.89 Broadcom 54.67 54.50 0.17 0.31 - - -6.26 High Yield US$ US$
Eaton 54.59 55.11 -0.52 -0.94 5.59 11.4 11.18 Naspers N 1733.49 1850.00 -116.51 -6.30 -191058.51 -99.1 -10.41 Navient Corporation 06/18 8.45 BB- Ba3 BB 102.62 7.34 0.00 0.47 6.67 Halliburton Company 02/27 6.75 A A2 A- 116.60 4.84 0.00 0.17 3.10
ShgPdgBk 18.38 17.30 1.08 6.24 1.88 11.4 3.26 Firstrand 43.91 44.50 -0.59 -1.33 -4151.09 -99.0 13.02 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 101.99 6.61 0.00 -0.29 4.86
RioTinto 1751.00 1840.50 -89.50 -4.86 133.50 8.3 0.69 MTN Grp 141.38 139.95 1.43 1.02 -12424.62 -98.9 13.20 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Archer Daniels Midland Company 12/27 6.75 A A2 A 121.57 4.44 0.00 0.09 2.70
Vale 10.23 10.34 -0.11 -1.06 0.73 7.7 -18.29 Williams Cos 11.39 11.16 0.23 2.06 -7.30 -39.1 -43.94 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 112.13 4.72 0.00 0.03 -
Aon Cp 92.63 92.98 -0.35 -0.38 6.43 7.5 6.50 Panasonic 858.80 941.20 -82.40 -8.75 -280.70 -24.6 -25.71 Emerging US$ FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 122.74 4.45 0.00 -0.32 -
UnionPac 76.85 76.03 0.82 1.08 5.14 7.2 4.03 Marathon Ptl 30.52 30.73 -0.21 -0.68 -9.75 -24.2 -33.93 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 E.I. du Pont de Nemours and Company 01/28 6.50 A- A3 A 118.41 4.54 0.00 0.00 -
CSX 23.53 23.01 0.52 2.26 1.50 6.8 0.26 Nomura 510.00 560.80 -50.80 -9.06 -162.80 -24.2 -19.67 Brazil 01/18 8.00 BB+ Baa3 BB+ 104.50 5.53 0.00 0.00 4.86
Russia 07/18 11.00 BB+ Ba1 BBB- 117.53 3.50 0.00 -0.20 2.84 Euro
CanadPcR 169.44 169.44 0.00 0.00 10.40 6.5 6.87 Hitachi 465.90 495.30 -29.40 -5.94 -137.90 -22.8 -26.41 Electricite de France (EDF) 03/27 4.13 A+ A1 A 120.89 2.01 0.00 0.10 0.26
ExxonMb 79.41 80.43 -1.02 -1.27 4.82 6.5 6.35 Fuji Hvy Ind 3850.00 4188.00 -338.00 -8.07 -1048.00 -21.4 -12.93 Peru 03/19 7.13 BBB+ A3 BBB+ 113.81 2.54 0.00 -0.08 1.87
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 93.79 3.30 0.00 0.29 1.56
Exelon 32.06 32.36 -0.30 -0.93 1.92 6.4 15.37 Murata Mfg 12550.00 13965.00 -1415.00 -10.13 -3295.00 -20.8 -18.76 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 102.35 3.01 0.00 0.19 1.26
ImpOil 43.54 43.54 0.00 0.00 2.46 6.0 -1.11 TokioMarine 3701.00 3941.00 -240.00 -6.09 -870.00 -19.0 -14.63 Brazil 01/21 7.88 BB+ Baa3 BB+ 95.15 6.03 0.00 0.00 4.87
Colombia 07/21 4.38 BBB Baa2 BBB 99.30 4.52 0.00 0.00 3.36 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 111.36 2.12 0.00 -0.25 -
Gree Elec Apl 0.18 0.18 0.00 0.56 0.01 5.9 -20.35 Altice 11.24 11.83 -0.60 -5.03 -2.62 -18.9 -21.05
Poland 03/22 5.00 A- A2 A- 111.54 2.95 0.00 -0.14 1.79 Yen
NorfolkS 70.44 70.49 -0.05 -0.07 3.84 5.8 -9.22 Denso 4208.00 4506.00 -298.00 -6.61 -978.00 -18.9 -19.01
Turkey 09/22 6.25 - Baa3 BBB- 108.86 4.73 0.00 -0.27 3.57 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Comcast 57.68 59.40 -1.73 -2.90 3.09 5.7 5.46 Viacom 35.75 41.85 -6.10 -14.58 -8.00 -18.3 -12.96
SingTel 3.70 3.48 0.22 6.32 0.19 5.4 3.06 Telsa Mtrs 149.61 147.99 1.62 1.09 -33.17 -18.1 -29.18 Turkey 04/26 4.25 - Baa3 BBB- 93.99 5.07 0.00 -0.22 3.33 £ Sterling
ShenwanHong 0.14 0.14 0.00 2.22 0.01 5.3 -12.66 NovoB 313.70 313.70 0.00 0.00 -67.20 -17.6 -20.80 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
CanNatRs 29.22 29.22 0.00 0.00 1.47 5.3 1.79 Nissan Mt 1003.50 1081.50 -78.00 -7.21 -208.50 -17.2 -12.15 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 104.67 3.47 0.06 0.29 1.18
Bradesco 20.88 21.55 -0.67 -3.11 1.05 5.3 2.65 ValeroEngy 54.26 54.82 -0.56 -1.02 -11.02 -16.9 -20.41 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.83 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ A3 BBB+ 121.63 2.06 0.00 0.00 0.90 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 114.47 3.97 0.00 0.02 2.22
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Feb 09 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Feb 09 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.25-0.50 16-12-2015 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 27.22 1.22 26.00 53.29 10.88 Feb 09 Price £ Yield Day Week Month Year High Low £m
US Prime 3.50 16-12-2008 3.50 3.25 3.25 Markit IBoxx VXD 25.88 1.22 24.66 56.32 7.04 Tr 4pc '16 102.08 0.35 0.00 -5.41 -16.67 -12.50 102.23 100.00 0.35
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 181.63 0.44 0.49 1.88 2.18 6.79 VXN 32.41 0.95 31.46 46.72 11.15 Tr 1.75pc '17 101.37 0.30 7.14 -11.76 -18.92 -44.44 102.48 101.33 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 304.94 -0.52 -1.05 3.89 3.60 14.35 VDAX 30.90 2.60 28.30 30.90 - Tr 5pc '18 109.82 0.24 9.09 -22.58 -53.85 -68.42 112.88 109.34 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 255.92 -0.44 -0.36 2.17 -0.36 2.17 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 112.43 0.42 5.00 -20.75 -46.84 -55.79 114.29 111.04 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 214.67 -0.01 0.08 0.93 0.81 7.74 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 116.66 0.60 1.69 -18.92 -40.00 -46.90 118.06 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 226.97 0.06 0.13 2.39 1.93 13.23 Tr 1.5pc '21 103.15 0.85 1.19 -15.84 -34.11 -31.45 141.03 99.91 0.16
Gilts( £) 294.27 -0.69 -1.81 3.02 2.67 15.53 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 118.31 0.89 0.00 -15.24 -32.58 -33.08 118.47 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 253.21 0.26 0.28 0.94 1.48 3.49 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 131.60 1.30 0.78 -9.72 -22.62 -17.72 132.45 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 303.98 -0.54 -1.06 3.57 3.30 13.76 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 128.82 1.57 0.64 -7.65 -19.07 -11.30 129.17 119.79 0.31
Feb 09 (Libor: Feb 08) night Day Week Month month month month year Overall ($) 228.92 -0.53 -0.49 2.12 -0.49 2.12 Australia 10/18 3.25 103.95 1.74 -0.03 -0.08 -0.24 -0.27 Tr 4.25pc '32 132.45 1.92 0.52 -5.88 -15.04 -5.42 133.12 121.93 0.35
US$ Libor 0.37630 0.006 0.009 0.000 0.42925 0.62100 0.87060 1.13995 Overall( £) 294.42 -0.64 -1.58 3.19 2.86 14.97 11/27 2.75 101.80 2.57 -0.05 -0.14 0.00 0.00 Tr 4.25pc '36 134.94 2.11 0.96 -4.95 -13.52 -2.76 136.01 123.52 0.28
Euro Libor -0.28286 0.001 0.000 -0.001 -0.24143 -0.19057 -0.11786 -0.00929 Overall(€) 222.42 0.03 0.10 1.80 1.47 10.97 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 145.78 2.22 0.45 -4.72 -12.25 -1.33 147.25 132.20 0.26
£ Libor 0.48125 0.000 0.003 0.000 0.51006 0.59044 0.74100 0.99963 Treasuries ($) 219.84 -0.66 -0.64 2.22 -0.64 2.22 10/25 1.20 105.82 0.58 0.03 -0.02 0.00 0.00 Tr 3.75pc '52 139.58 2.17 0.93 -4.41 -11.79 -4.41 140.18 121.95 0.22
Swiss Fr Libor 0.002 -0.78100 -0.74900 -0.68980 -0.60820 FTSE Belgium 06/18 0.75 101.82 -0.03 0.00 0.00 0.00 0.00 Tr 4pc '60 153.19 2.13 0.95 -4.48 -11.62 -5.33 153.92 131.72 0.22
Yen Libor -0.003 -0.00557 0.03043 0.03700 0.10543 Sterling Corporate (£) 110.31 -0.32 - - -0.76 -5.72 06/26 1.00 102.58 0.74 0.01 -0.03 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.001 -0.23500 -0.16900 -0.10700 -0.00500 Euro Corporate (€) 106.16 -0.13 - - 0.59 -4.39 Canada 11/17 0.25 99.84 0.35 0.00 0.00 0.00 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.77500 Euro Emerging Mkts (€) 729.77 -27.03 - - -8.88 -25.99 06/26 1.50 103.16 1.17 0.00 0.00 0.00 0.00
US$ CDs
Euro CDs
0.000
0.000
0.42000
-0.27500
0.59000
-0.21500
0.83000
-0.11500
Eurozone Govt Bond 114.83 -0.19 - - 0.89 -1.74 Denmark 11/18 0.25 101.49 -0.29 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 111.55 0.53 0.01 -0.06 -0.34 0.34
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 99.98 1.01 0.00 -0.06 -0.22 0.00
Fixed Coupon Feb 09 chg % Return 1 month 1 year Yield
Feb 09 term notice month month month year Markit iTraxx 09/25 0.88 103.09 0.54 0.02 -0.03 -0.30 0.00
1 Up to 5 Years 99.39 -0.04 2397.32 0.88 2.19 0.55
Euro -0.35 -0.25 -0.35 -0.25 -0.35 -0.20 -0.29 -0.14 -0.19 -0.04 -0.10 0.05 Crossover 5Y 462.32 1.76 75.49 109.20 475.62 280.05 France 05/19 1.00 104.30 -0.30 0.00 0.00 0.00 0.00
2 5 - 10 Years 185.24 -0.06 3353.08 2.49 4.19 1.14
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.55 0.65 0.70 0.85 0.95 1.10 Europe 5Y 119.66 -2.15 21.39 33.69 124.70 68.39 11/20 0.25 101.82 -0.13 0.00 0.00 0.00 0.00
3 10 - 15 Years 213.85 -0.12 3983.10 3.62 4.32 1.68
Swiss Franc - - - - - - - - - - - - Japan 5Y 102.69 7.31 17.74 21.94 103.50 65.01 11/25 1.00 103.60 0.62 0.02 -0.03 -0.30 0.00
4 5 - 15 Years 192.04 -0.08 3505.74 2.82 4.20 1.36
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 134.32 -2.30 35.67 52.39 139.67 65.28 05/45 3.25 138.02 1.61 0.02 -0.06 -0.32 0.21
5 Over 15 Years 314.74 -0.30 4588.43 5.75 3.90 2.16
US Dollar 0.32 0.42 0.32 0.42 0.35 0.45 0.55 0.65 0.75 0.85 1.10 1.20 Germany 04/19 0.50 103.02 -0.45 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 178.48 -0.15 3355.39 3.34 3.35 1.87
Japanese Yen 0.00 0.15 -0.30 -0.10 -0.45 -0.15 -0.40 -0.15 -0.20 0.05 -0.10 0.15 10/20 0.25 102.78 -0.34 0.00 0.00 0.00 0.00
Emerging Markets 5Y 388.91 11.12 19.14 8.44 400.12 299.17 02/26 0.50 102.53 0.24 0.02 -0.06 0.00 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 572.08 22.23 62.05 51.33 572.08 416.39 08/46 2.50 141.98 0.92 0.01 -0.14 -0.44 -0.03
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Feb 09 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 120.51 5.72 16.50 22.06 120.51 75.52 Greece 07/17 3.38 88.02 13.06 0.18 2.31 4.60 -7.64
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 283.44 100.00 1 Up to 5 Years 309.65 -0.12 0.16 -1.06 2375.62 0.58 0.38
02/26 3.00 58.88 10.33 0.26 1.03 1.99 -0.57 2 Over 5 years 590.71 -0.87 3.92 4.30 4365.47 3.99 5.08
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 109.82 -0.31 0.00 0.00 0.00 0.00 3 5-15 years 436.06 -0.36 1.69 -0.02 3324.82 1.84 1.28
05/26 1.00 99.30 1.07 0.08 0.13 0.00 0.00 4 Over 15 years 733.69 -1.07 4.81 6.27 5317.61 4.85 6.84
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.41 0.15 0.01 0.11 0.07 0.00 5 All stocks 544.43 -0.76 3.37 3.71 4076.87 3.50 4.60
11/20 0.65 100.14 0.62 0.00 0.16 0.02 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 102.65 1.71 0.01 0.22 0.09 0.00 Yield Indices Feb 09 Feb 08 Yr ago Feb 09 Feb 08 Yr ago
Crude Oil† Feb 29.60 -0.60 Corn♦ Mar 360.50 -2.00 Aug 02 Aug 02 Prev return stock Market stocks
09/46 3.25 109.12 2.82 0.01 0.14 0.10 0.09 5 Yrs 0.74 0.73 1.09 20 Yrs 2.17 2.16 2.18
Brent Crude Oil‡ 31.34 -1.80 Wheat♦ Mar 459.00 0.00 Can 4.25%' 21 127.76 -0.460 -0.469 0.66 5.18 72085.19 7
Japan 01/18 0.10 100.66 -0.24 0.00 0.00 0.00 0.00 10 Yrs 1.47 1.46 1.65 45 Yrs 2.15 2.13 2.27
RBOB Gasoline† Feb 0.92 -0.04 Soybeans♦ Mar 862.00 -1.00 Fr 2.25%' 20 113.83 -0.786 -0.780 -0.21 20.31 217420.09 14
02/21 0.05 101.07 -0.16 0.00 0.00 0.00 0.00 15 Yrs 1.95 1.94 1.99
Heating Oil† Feb 1.05 -0.01 Soybeans Meal♦ Mar 264.60 0.20 Swe 0.25%' 22 108.78 -0.955 -0.935 0.05 32.27 225917.35 7
12/25 0.30 103.19 -0.02 0.00 0.00 0.00 0.00
Natural Gas† Feb 2.10 -0.03 Cocoa (ICE Liffe)X Mar 2037.00 -21.00 UK 2.5%' 20 361.81 -1.421 -1.339 0.43 6.58 509168.65 25
12/45 1.40 107.82 1.06 -0.01 0.00 -0.13 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2792.00 -57.00 UK 2.5%' 24 343.91 -1.000 -0.902 0.85 6.82 509168.65 25
Netherlands 04/17 0.50 101.16 -0.48 0.00 0.00 0.00 0.00 Real yield Feb 09 Dur yrs Previous Yr ago Feb 09 Dur yrs Previous Yr ago
Uranium Feb 36.75 0.00 Coffee(Robusta)X Mar 1387.00 1.00 UK 2%' 35 237.33 -0.921 -0.844 1.29 9.08 509168.65 25
07/25 0.25 98.60 0.40 0.02 -0.04 -0.32 0.00 Up to 5 yrs -1.04 2.27 -1.09 -0.97 -1.76 2.28 -1.81 -1.56
Carbon Emissions - - Coffee (Arabica)♥ Mar 115.30 -0.50 US 0.625%' 21 102.58 0.148 0.167 -0.10 35.84 1128799.17 36
Diesel Mar - - White SugarX 391.10 0.20 New Zealand 03/19 5.00 107.46 2.48 -0.01 -0.02 -0.13 -0.74 Over 5 yrs -0.94 23.65 -0.97 -0.73 -0.96 23.73 -1.00 -0.77
US 3.625%' 28 133.98 0.708 0.167 0.64 16.81 1128799.17 36
Unleaded (95R) - - Sugar 11♥ 13.48 -0.01 04/27 4.50 113.97 3.02 -0.01 -0.11 -0.35 -0.33 5-15 yrs -0.88 9.53 -0.92 -0.81 -0.99 9.54 -1.03 -0.93
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.77 0.55 -0.01 -0.04 -0.09 -0.21 Over 15 yrs -0.94 29.17 -0.98 -0.72 -0.96 29.21 -0.99 -0.74
Base Metals (♠ LME 3 Months) Cotton♥ Mar 59.45 -0.24 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 104.30 1.25 -0.01 -0.07 -0.14 0.00 All stocks -0.94 20.63 -0.97 -0.74 -0.97 20.76 -1.01 -0.78
Aluminium 1494.00 -10.50 Orange Juice♥ Mar 133.30 0.75 amount.
Aluminium Alloy 1560.00 -10.00 Palm Oil♣ Jan 562.00 - Portugal 06/19 4.75 111.72 1.15 0.04 0.25 0.38 -0.15 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4498.00 -122.00 Live Cattle♣ Feb 133.05 0.00 BONDS: TEN YEAR GOVT SPREADS 07/26 2.88 96.59 3.27 0.00 0.00 0.00 0.00
Lead 1818.00 -9.00 Spain 04/18 0.25 100.24 0.14 0.02 0.08 0.00 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Mar 149.33 -3.95
Nickel 8155.00 -25.00 Lean Hogs♣ Apr 69.73 -0.08 Spread Spread Spread Spread 04/26 1.95 100.92 1.85 0.00 0.16 0.00 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 15715.00 115.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.98 1.01 0.00 -0.08 -0.32 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1700.00 -33.00 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 118.34 0.47 0.00 -0.12 -0.39 -0.17 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Feb 08 Month Year Australia 2.57 2.33 0.83 Italy 1.71 1.47 -0.03 Switzerland 05/19 3.00 113.09 -0.94 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1191.00 -2.25 S&P GSCI Spt 285.36 -3.44 -30.46 Austria 0.58 0.34 -1.17 Japan -0.02 -0.27 -1.77 05/26 1.25 116.55 -0.33 0.00 0.00 0.00 0.00
Silver (US cents) 1534.00 40.00 DJ UBS Spot 74.61 -2.76 -27.31 Belgium 0.74 0.50 -1.01 Netherlands 0.40 0.16 -1.34 United Kingdom 07/18 1.25 101.96 0.44 0.02 -0.07 -0.22 -0.47 Data provided by Morningstar | www.morningstar.co.uk
Platinum 932.00 19.00 R/J CRB TR 159.21 -5.86 -29.38 Canada 1.17 0.93 -0.57 Norway 1.25 1.00 -0.50 01/21 1.50 103.05 0.87 0.02 -0.13 -0.35 0.00
Palladium 517.00 21.00 Rogers RICIX TR 1891.39 - - Denmark 0.53 0.29 -1.21 Portugal 3.27 3.02 1.52 09/25 2.00 105.08 1.43 0.02 -0.11 -0.32 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.54 0.30 -1.21 Spain 1.85 1.61 0.10 12/46 4.25 145.27 2.22 0.01 -0.09 -0.27 -0.06
Iron Ore (Platts) 45.50 -0.50 UBS Bberg CMCI TR 11.20 -3.48 -29.65 France 0.62 0.38 -1.13 Switzerland -0.33 -0.57 -2.07 United States 01/18 0.75 100.16 0.67 0.00 -0.08 0.00 0.00
Iron Ore (The Steel Index) 44.70 0.00 LEBA EUA Carbon 5.96 -14.86 -14.98 Germany 0.24 0.00 -1.50 United Kingdom 1.43 1.19 -0.32 01/21 1.38 101.05 1.16 0.01 -0.12 0.00 0.00
GlobalCOAL RB Index 51.00 -1.95 LEBA CER Carbon 0.37 -15.91 -13.95 Greece 10.33 10.08 8.58 United States 1.75 1.50 0.00 11/25 2.25 104.51 1.75 0.01 -0.11 -0.38 0.00
Baltic Dry Index 291.00 -2.00 LEBA UK Power 2545.00 202.98 -17.13 Ireland 1.07 0.83 -0.67 11/45 3.00 108.64 2.58 0.02 -0.08 -0.32 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
20 ★ FINANCIAL TIMES Wednesday 10 February 2016

MANAGED FUNDS SERVICE

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

Atlantis China Healthcare Fund $ 1.74 - -0.01 0.00 CAM GTi Limited $ 605.58 - -7.40 0.00 European Opportunities I GBP £ 1.62 - -0.07 2.61 Invesco Euro Reserve A € 322.62 - -0.01 0.00

ACPI Global UCITS Funds Plc (IRL) Atlantis Japan Opportunities Fund $ 2.39 - -0.10 0.00 Raffles-Asia Investment Company $ 1.56 1.56 0.01 5.51 European Opportunities I USD $ 2.35 - -0.12 2.30 GYS Investment Management Ltd (GSY) Invesco Euro Bond A € 7.04 - -0.04 0.00 Lloyds Investment Fund Managers Limited (1000)F (JER) Mirabaud Asset Management (LUX)
www.acpishard.com Regulated PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 www.mirabaud.com, marketing@mirabaud.com
Regulated Atlantis Asian Fund $ 6.18 - 0.02 0.00 European Opportunities A EUR € 2.05 - -0.10 1.77 Invesco European Growth Equity A € 21.63 - -0.43 0.00 Other International Funds Regulated
Taurus Emerging Fund Ltd $ 162.84 166.17 7.81 0.00
ACPI Emerging Mkts FI UCITS Fund USD A $ 103.52 - -0.72 0.00 Lloydstrust Gilt £ 12.5700xd - 0.1000 2.24 Mir. Conv. Bds Eur A EUR € 127.68 - -1.96 0.00
Global Opportunities I USD $ 1.44 - -0.02 2.29 Invesco Global Absolute Return Fund A Class € 11.69 - 0.06 0.00
ACPI Global Credit UCITS Funds USD A $ 13.74 - -0.04 0.00 Lloyds Investment Funds Limited Mir. Conv. Bds Glb A USD $ 106.03 - -1.19 0.00
Global Opportunities I GBP £ 1.00 - -0.01 2.00 Generali Worldwide Invesco Global Bond A Inc $ 5.41 - -0.02 0.76
ACPI Global Fixed Income UCITS Fund USD A $ 152.71

Q ACPI India Fixed Income UCITS Fund USD A $ 9.77

-

-
0.23 0.00

0.01 -
AXIOM
ALTERNATIVE INVESTMENTS
Global Opportunities I EUR € 1.52 - -0.01 1.98
PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
International Insurances
Invesco Global Conservative Fund 90 (EUR) A € 11.76 - -0.02 0.00
Euro High Income

European
€ 1.5950xd

£ 6.9710
-

-
-0.0030 2.94

-0.0610 1.54
Mir. - Eq Asia ex Jap A

Mir.- EqEurope ExUK Sm&Mid

$ 157.14

£ 98.27
-

-
-0.89 0.00

-3.59 -
Global Opportunities A GBP £ 0.94 - -0.01 1.52 Global Multi-Strategy Managed $ 4.44 4.79 0.00 0.00 Invesco Global Equity Income Fund A $ 52.19 - -0.39 0.00
High Income £ 0.8480xd - 0.0009 5.02
ACPI India Fixed Income UCITS Fund USD A3 $ 83.50 - 0.03 0.00 Cheyne Capital Management (UK) LLP (IRL) Mir. - Eq Glb Emrg Mkt A USD $ 79.69 - -0.87 0.00
Pan European Opportunities I EUR € 1.28 - -0.07 - UK Multi-Strategy Managed £ 4.61 4.96 0.01 0.00 Invesco Global Inc Real Estate Sec A dist $ 8.81 - -0.15 2.31
Regulated
International £ 3.7660 - -0.0200 1.14
ACPI International Bond UCITS Fund USD A $ 18.30 - 0.14 0.00 Axiom Alternative Investments (FRA) Mir. - Eq Global Focus A USD $ 88.94 - -1.89 0.00
Cheyne Convertibles Absolute Return Fund € 1295.00 - -6.67 0.00 EU Multi-Strategy Managed € 2.89 3.12 -0.02 0.00 Invesco Global Inv Grd Corp Bond A Dist $ 11.70 - -0.04 3.04
1 Conduit Street - 4th floor - London W1S 2XA
North American £ 14.6300 - -0.1600 0.27
www.axiom-ai.com Tel: +44 330 822 0374 Mir. -Eq Spain A € 22.06 - -1.01 0.00
Cheyne Global Credit Fund € 111.60 - -1.36 0.00 Global Bond USD $ 3.42 3.69 0.02 0.00 Invesco Global Leisure A $ 31.15 - -0.18 0.00
Regulated Sterling Bond £ 1.4430xd - 0.0030 3.69
ACPI Select UCITS Funds PLC (IRL) Mir. - Eq Swiss Sm/Mid A SFr 304.33 - -10.86 0.00
Regulated Axiom Contingent Capital € 924.52 - -26.83 - Cheyne European Mid Cap Fund € 1092.62 - -16.80 0.00 Invesco Global Smaller Comp Eq Fd A $ 49.29 - -1.50 0.00
UK £ 5.8480 - -0.0530 1.71
Mir. - Glb High Yield Bds A $ 103.16 - -0.94 -
ACPI Balanced UCITS Fund USD Retail $ 13.21 - -0.14 0.00 Axiom Contingent Capital £ 928.48 - -27.31 - Genesis Asset Managers LLP Invesco Global Structured Equity A $ 41.78 - -0.51 0.80
Lloyds Gilt Fund Limited
Other International Funds Mir. - Glb Eq High Income A USD $ 90.76 - -1.28 0.00
ACPI Balanced UCITS Fund EUR Retail € 9.95 - -0.10 0.00 Cheyne Capital Management (UK) LLP Invesco Global Total Ret.(EUR) Bond Fund A € 12.66 - -0.08 0.00
Axiom Equity $ 668.91 - -43.45 - Lloyds Gilt Fund Quarterly Share £ 1.3100xd - 0.0100 1.77
Other International Funds Emerging Mkts NAV £ 4.95 - -0.01 0.00
EFG Hermes Mir. - Glb Inv Grade Bds A € 99.63 - -0.17 -
ACPI Balanced UCITS Fund GBP Retail £ 10.07 - -0.10 0.00 Axiom Equity € 703.13 - -45.53 0.00 Invesco Gold & Precious Metals A $ 3.99 - 0.10 0.00 Monthly Share £ 1.2600xd - 0.0100 1.77
Cheyne European Event Driven Fund € 134.54 - -11.29 0.00 DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com Mir. - Glb Strat. Bd A USD $ 101.76 - -0.55 0.00
Axiom Obligataire $ 1630.31 - -37.91 0.00 Invesco Greater China Equity A $ 38.66 - -0.13 0.00 Lloyds Money Fund Limited
Cheyne Real Estate Credit Holdings Fund £ 162.87 - 1.01 0.00 Other International Funds HPB Assurance Ltd
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Sterling Class £ 52.6240 - 0.0000 0.10 Mir. - US Shrt Term Credit Fd $ 99.12 - -0.16 -
Axiom Obligataire € 1627.64 - -37.85 0.00 Invesco India Equity A $ 47.42 - -0.52 0.00
Cheyne Real Estate Credit Holdings Fund III £ 112.40 - 0.42 0.00 The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 International Insurances
Lloyds Multi Strategy Fund Limited
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Axiom Obligataire £ 1639.05 - -38.86 0.00 Invesco Japanese Equity Adv Fd A ¥ 3331.00 - -202.00 0.00
Cheyne Real Estate Debt Fund Class A1 £ 132.13 - 0.48 0.00 EFG-Hermes Frontier Equity UCITS Fund Class I $ 987.21 - 0.82 - Holiday Property Bond Ser 1 £ 0.49 - -0.01 0.00
Conservative Strategy £ 1.0850 - -0.0020 1.97 MW Japan Fund Plc (IRL)
ACPI Horizon UCITS Fund $ 12.23 - -0.11 0.00 Invesco Japanese Value Eq Fd A ¥ 1094.00 - -69.00 0.00
Cheyne Total Return Credit Fund - December 2017 Class $ 152.88 - -20.24 0.00 EFG-Hermes MENA Equity UCITS Fund Class A $ 935.07 - 5.31 - Holiday Property Bond Ser 2 £ 0.59 - -0.01 0.00 FCA Recognised
Growth Strategy £ 1.4050 - -0.0170 1.32
BLME Asset Management (LUX) Invesco Latin American Equity A $ 5.17 - -0.07 0.00 MW Japan Fund PLC A $ 22.78 - -1.03 -
Cheyne Total Return Credit Fund 2020 $ 100.78 - -2.61 - Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00
BLME Sharia'a Umbrella Fund SICAV SIF Aggressive Strategy £ 1.6670 - -0.0270 0.00
Invesco Nippon Small/Mid Cap Equity A ¥ 921.00 - -51.00 0.00 MW Japan Fund PLC B $ 22.95 - -1.03 -
Regulated Saudi Arabia Equity Fund SR 10.42 - -0.01 0.00 Haussmann
Global USD Growth Strategy $ 1.2300 - -0.0230 0.00
Income Fund - Share Class A Acc $ 1137.23 - 0.35 0.00 Other International Funds Invesco Pan European Equity A EUR Cap NAV € 15.58 - -0.47 0.00 MW Japan Fund PLC C $ 83.63 - -5.04 -
Cohen & Steers SICAV (LUX) Dealing Daily
Regulated Haussmann Cls A $ 2547.18 - -27.44 0.00
Income Fund - Share Class G Acc £ 1078.96 - 0.38 0.00 Invesco Pan European High Income Fd A € 12.92 - -0.13 2.55
Ennismore Smaller Cos Plc (IRL)
European Real Estate Securities € 20.9849 - -0.8353 1.88 5 Kensington Church St, London W8 4LD 020 7368 4220 Haussmann Cls C € 2223.09 - -25.69 0.00
Gl Sukuk Fund - Share Class A Acc $ 1209.86 - 1.30 0.00 Invesco Pan European Small Cap Equity A € 19.42 - -0.67 0.00 M & G (Guernsey) Ltd (GSY) Morant Wright Funds (Ireland) PLC (IRL)
FCA Recognised FCA Recognised
Algebris Investments (IRL) Europ.RealEstate Sec. IX € 28.1439 - -1.1202 0.00 Haussmann Cls D SFr 1175.09 - -13.80 0.00 Regulated
Gl Sukuk Fund - Share class B Acc £ 1080.27 1080.27 1.26 0.00 Ennismore European Smlr Cos NAV £ 105.36 - 0.36 0.00 Invesco Pan European Structured Equity A € 15.08 - -0.36 0.00
Regulated The M&G Offshore Fund Range Morant Wright Fuji Yield EUR Dist Hedged € 9.42 - -0.46 2.25
Gbl Listed Infrastructure I $ 9.6229 - -0.1214 -
Algebris Financial Credit Fund - Class I EUR € 124.96 - -2.58 0.00 Ennismore European Smlr Cos NAV € 135.85 - -0.62 0.00 Invesco UK Eqty Income A £ 29.23 - -0.40 0.00 Corporate Bond 1297.72 1337.85 0.00 3.19 Morant Wright Fuji Yield GBP Acc Hedged £ 9.74 - -0.48 0.00
Gbl Listed Infrastructure IX $ 9.6646 - -0.1220 - Heartwood Wealth Management Limited (IRL)
Algebris Financial Income Fund - Class I EUR € 102.34 - -4.37 0.00 Bank of America Cap Mgmt (Ireland) Ltd (IRL) Invesco UK Investment Grade Bond A £ 0.99 - 0.00 2.84 Global Basics 2161.12 2227.95 -7.25 0.31
Regulated Morant Wright Fuji Yield GBP Dist Hedged £ 9.48 - -0.46 0.87
Regulated Gbl RealEstate Sec. I $ 9.9203 - -0.2359 2.17
Algebris Financial Equity Fund - Class B EUR € 78.04 - -5.07 - Global Liquidity USD $ 1.00 - 0.00 0.51 Ennismore European Smlr Cos Hedge Fd Heartwood Caut Multi Asset B Acc 135.25 - -0.73 0.00 Invesco US Structured Equity A $ 19.50 - -0.03 0.00 Global Leaders 2966.05 3089.63 -65.63 1.12 Morant Wright Fuji Yield USD Acc Hedged $ 9.49 - -0.47 0.00
Gbl RealEstate Sec. IX $ 11.8113 - -0.2809 0.00 Other International Funds
Algebris Asset Allocation Fund - Class B EUR € 92.46 - -2.38 - Invesco US Value Eq Fd A $ 26.95 - -0.27 0.00 Global High Yield Bond 904.40 932.37 -7.67 4.85 Morant Wright Fuji Yield USD Dist Hedged $ 9.52 - -0.47 2.32
NAV € 493.94 - -2.06 0.00
Barclays Investment Funds (CI) Ltd (JER) Invesco USD Reserve A $ 87.02 - 0.00 0.00 Global Macro Bond Fund 11388.26 11740.48 -28.45 1.95 Morant Wright Fuji Yield YEN Acc ¥ 983.12 - -48.08 0.00
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800
Amundi Funds (LUX) North American Dividend Fund 145.94 152.02 -1.92 2.37
FCA Recognised Equinox Fund Mgmt (Guernsey) Limited (GSY) Morant Wright Fuji Yield B YEN Acc ¥ 867.47 - -42.64 -
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332
Bond Funds Regulated Invesco Global Asset Management Ltd (IRL)
www.amundi-funds.com Optimal Income Fund 136.07 140.28 -0.60 2.83 Morant Wright Fuji Yield YEN Dist ¥ 962.72 - -47.09 2.31
FCA Recognised Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
Sterling Bond F £ 0.46 - 0.00 3.28 Equinox Russian Opportunities Fund Limited $ 110.67 - -9.01 0.00
FCA Recognised Recovery Fund Limited 'A' Participating Shares 8552.19 8908.53 -208.94 0.58 Morant Wright Sakura Fund Sterling Acc Hedged £ 11.96 - -0.72 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.24 - 0.04 0.00
Hermes Investment Funds Plc (IRL)
Invesco Stlg Bd A QD F £ 2.55 - -0.01 3.35
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 Recovery Fund Limited 'I' Participating Shares 8530.94 8617.11 -209.96 1.47 Morant Wright Sakura Fund Euro Acc Hedged € 11.96 - -0.71 0.00
Bd. Global AU Class - R - USD $ 25.34 - -0.07 0.00 Baring International Fd Mgrs (Ireland) (IRL) Crèdit Andorrà Asset Management (LUX)
Euronova Asset Management UK LLP (CYM)
www.creditandorra.com FCA Recognised Invesco Asian Equity A $ 5.46 - -0.05 0.58
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 Regulated Strategic Corporate Bond Fund 130.37 135.80 -0.18 3.11 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1226.34 - -72.65 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 FCA Recognised Hermes Abs Return Credit Fund Class F Acc £ £ 1.05 1.05 0.01 -
FCA Recognised Invesco ASEAN Equity A $ 87.21 - -0.37 0.30
Smaller Cos Cls One Shares (Est) € 34.56 - 0.54 0.00
Crediinvest SICAV Money Market Eur I € 11.22 - 0.00 0.00 UK Select 1308.63 1363.15 -31.12 1.20 Morant Wright Sakura Fund Dollar Acc Hedged $ 11.90 - -0.72 0.00
Eq. Emerging World AU Class - R - USD $ 73.48 - -0.75 0.00 ASEAN Frontiers A GBP Inc £ 110.83 - 0.78 0.57 Hermes Abs Return Credit Fund Class R Acc € € 1.94 1.94 0.00 -
Smaller Cos Cls Two Shares (Est) € 24.19 - 0.34 0.00 Invesco Bond A $ 26.84 - 0.03 1.99
Eq. Greater China AU Class - R - USD $ 490.73 - -0.86 0.00 Crediinvest SICAV Money Market Usd A $ 10.04 - 0.00 0.00 Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 11.84 - -0.70 0.00
Asia Growth A GBP Inc H £ 43.02 - -0.25 0.00 Hermes Active UK Inflation Fund Class F Acc £ 1.34 1.34 0.01 0.00
Smaller Cos Cls Three Shares (Est) € 12.07 - 0.21 0.00 Invesco Continental Eurp Small Cap Eqty A $ 172.77 - -5.44 0.00 MFS Investment Funds (LUX)
Eq. Latin America AU Class - R - USD $ 288.07 - -3.47 0.00 Crediinvest SICAV Fixed Income Eur € 10.38 - -0.04 0.00
Australia A GBP Inc £ 62.62 - -1.98 1.95 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.49 1.49 0.00 0.00 FCA Recognised
Smaller Cos Cls Four Shares (Est) € 15.66 - 0.23 0.00 Invesco Emerging Markets Equity A $ 31.25 - -0.44 0.00
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.07 - -0.07 0.00 Crediinvest SICAV Fixed Income Usd $ 10.31 - -0.01 0.00 Blend.Research Gb.Eq.Fd. € 88.76 - -1.85 -
Baring China Bond Fund $ 9.65 - -0.01 0.00 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.03 3.03 -0.03 0.00
Invesco Emerging Markets Bond A $ 20.20 - -0.03 4.72
Crediinvest SICAV Spanish Value € 218.37 - -7.29 0.00 Blend.Research Gb.Eq.Fd. £ 92.49 - -1.17 -
Baring Emerging Markets Corporate Debt Fund $ 9.11 - -0.02 0.00 Hermes Global Emerging Markets Fund Class F Acc £ 1.11 1.11 -0.01 0.00
Invesco Continental European Equity A € 7.10 - -0.21 0.22
The Antares European Fund Limited Baring European Opportunities Fund Class A EUR Acc € 11.58 - -0.42 0.00
Crediinvest SICAV International Value € 196.93 - -3.15 0.00
Hermes Global Emerging Markets Fund Class R Acc € 2.64 2.64 -0.04 0.00
Blend.Research U.S.Core Eq.Fd. ¥ 8810.00 - -246.00 -
Other International Invesco Gilt A £ 15.53 - 0.09 1.33
Crediinvest SICAV Big Cap Value € 13.69 - -0.47 0.00 Blend.Research Gb.Eq.Fd. $ 87.35 - -1.79 -
Baring Global Mining Fund - Class A GBP Inc £ 3.45 - 0.02 0.71 Hermes Global Equity Fund Class F Acc £ 1.40 1.40 -0.02 0.00
AEF Ltd Usd (Est) $ 634.91 - -0.01 - Invesco Global Small Cap Equity A NAV $ 104.23 - -2.02 0.00 Morgan Stanley Investment Funds (LUX)
Crediinvest SICAV US American Value $ 16.50 - -0.25 0.00 Em.Mk.Eq.Fund Euro € 97.34 - -1.31 0.00
Dynamic Emerging Markets A GBP Acc F £ 8.44 - 0.03 0.00 Hermes Global Equity Fund Class R Acc € 3.45 3.45 -0.08 0.00 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
AEF Ltd Eur (Est) € 636.44 - -0.11 0.00 Invesco Global High Income A NAV $ 11.38 - -0.09 6.17

Asset Management
Crediinvest SICAV Sustainability € 13.80 - -0.24 0.00 www.morganstanleyinvestmentfunds.com
Eastern Europe A GBP Inc £ 37.62 - -1.16 1.85 Em.Mk.Eq.Fund Sterling £ 88.77 - -0.48 0.00
Eurobank Fund Management Company (Luxembourg) S.A. Hermes Global ESG Equity Fund Class F Acc £ 1.08 1.08 -0.02 0.00
Asset Management Asset Management
Invesco Gbl R/Est Secs A GBP F F £ 7.43 - -0.21 0.90 FCA Recognised
Regulated Em.Mk.Eq.Fd.US Dollar $ 82.87 - -1.09 0.00
Arisaig Partners Emerging Mkt Debt LC A GBP Hedged Inc £ 6.87 - -0.03 6.76 Hermes Global High Yield Bond Fund Class F Acc £ 1.07 1.07 0.00 0.00 US Advantage A F $ 50.82 - -1.43 0.00
(LF) Absolute Return € 1.29 - 0.00 0.00 Invesco Global Health Care A $ 105.94 - -1.57 0.00
Other International Funds DAVIS Funds SICAV (LUX)
Gb.Conc.Eq.Fd.Euro € 254.49 - -4.37 0.00
Emerging Opportunities A GBP Inc H £ 17.83 - -0.15 0.00 Hermes Global High Yield Bond Fund Class R Acc € 2.62 2.62 -0.03 0.00 Asian Equity A F $ 36.54 - -0.61 0.00
Regulated Invesco Global Select Equity A $ 10.95 - -0.19 0.00
Arisaig Africa Consumer Fund Limited $ 12.94 - -0.04 0.00 (LF) Eq Emerging Europe € 0.63 - -0.02 0.00
Glb Emerging Markets A GBP Inc H £ 17.06 - -0.19 0.00 Davis Value A $ 34.55 - -0.83 0.00 Gb.Conc.Eq.Fd.Sterl.UK T £ 165.15 - -1.50 0.00 Asian Property A F $ 15.98 - -0.18 0.00
Hermes Global Small Cap Fund Class F Acc £ £ 0.91 0.91 -0.02 -
(LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Invesco Jap Eqty Core A $ 1.73 - 0.02 0.00
Arisaig Asia Consumer Fund Limited $ 58.88 - 0.59 0.00
Glb Resources A GBP Inc H £ 9.80 - -0.07 0.40 Davis Global A $ 24.52 - -0.69 0.00 Gb.Conc.Eq.Fd.Sterling £ 249.90 - -2.27 0.00 Asian Property AX F £ 10.78 - -0.01 0.54
Hermes Global Small Cap Fund Class R Acc € € 1.68 1.68 -0.05 -
(LF) Eq Mena Fund € 12.02 - 0.05 0.00 Invesco Japanese Equity A $ 16.99 - -0.80 0.00
Arisaig Global Emerging Markets Consumer UCITS € 10.99 - -0.05 0.00
High Yield Bond A GBP Hedged Inc H £ 5.83 - -0.06 7.30 Gb.Conc.Eq.Fd.US $ 179.62 - -3.02 0.00 Diversified Alpha Plus A F € 29.41 - 0.04 0.00
Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.95 0.95 -0.01 0.00
(LF) Greek Government Bond € 16.04 - -0.77 - Invesco Korean Equity A $ 33.79 - 0.02 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.76 - 0.08 0.00
Hong Kong China A GBP Inc £ 503.06 - -3.32 0.65 Gb.Eq.Hdg Fd.Euro IRE T € 166.32 - -3.25 0.00 Emerg Europ, Mid-East & Africa Eq A F € 58.65 - -1.71 0.00
Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.00 1.00 0.00 0.00
(LF) Greek Corporate Bond € 11.35 - -0.18 - Invesco PRC Equity A $ 42.99 - -0.09 0.00
Arisaig Latin America Consumer Fund $ 19.40 - 0.39 0.00
India Fund - Class A GBP Inc £ 13.46 - -0.41 0.00 Gb.Eq.Euro Hdg Fd. € 235.65 - -4.59 0.00 Emerging Markets Debt A F $ 73.18 - 0.09 0.00
Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.19 1.19 -0.02 0.00
(LF) FOF Dynamic Fixed Inc € 11.48 - 0.05 0.00 Invesco Pacific Equity A $ 41.63 - -1.03 0.08
Latin America A USD Inc H $ 23.78 - -0.10 0.26 Gb.Eq.Fund Euro € 254.38 - -5.15 0.00 Emerging Markets Domestic Debt AX F £ 10.52 - 0.01 5.35
Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.15 1.15 -0.02 1.35
Artisan Partners Global Funds PLC (IRL) (LF) FOF Real Estate € 15.10 - -0.38 0.00 Invesco Global Technology A $ 12.91 - -0.11 0.00
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland MENA A GBP Inc F * £ 11.50 - -0.08 0.70 Gb.Eq. Fd Euro IRE T € 160.98 - -3.26 0.00 Emerging Markets Equity A F $ 29.72 - -0.59 0.00
Hermes Sourcecap EU Alpha Fund Class R Acc € 2.70 2.70 -0.06 0.00
Invesco UK Eqty A £ 6.93 - -0.17 1.48
Tel: 44 (0) 207 766 7130 Dodge & Cox Worldwide Funds (IRL) Gb.Eq.Fd.Sterling UK T £ 199.63 - -2.42 0.00 Euro Bond A F € 15.89 - 0.02 0.00
FCA Recognised 6 Duke Street,St.James,London SW1Y 6BN Hermes Sourcecap EX UK Fund Class F Acc £ 1.26 1.26 -0.01 0.00
FIL Fund Management (LUX)
Artisan Partners Global Funds plc Baring International Fd Mgrs (Ireland) (IRL) www.dodgeandcox.worldwide.com 020 3713 7664 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Hermes Sourcecap EX UK Fund Class R Acc € 2.77 2.77 -0.06 0.00
Gb.Eq.Fd.US Dollar $ 283.45 - -5.63 0.00 Euro Corporate Bond AX F £ 22.53 - 0.11 1.55
Regulated FCA Recognised Phone: 800 22 089, 800 22 088 Invest AD
Artisan Emerging Markets I USD Acc $ 6.19 - -0.05 0.00 Client services: +971 2 692 6101 clientservices@InvestAD.com Gb.Eq.Fund Sterling £ 197.26 - -2.39 0.00
Dodge & Cox Worldwide Funds plc - Global Bond Fund Regulated Hermes UK Small & Mid Cap Fund Class F Acc £ 1.50 1.50 -0.05 0.00 Euro Strategic Bond A F € 43.30 - -0.03 0.00
China A-Share A GBP Inc £ 5.70 - 0.14 0.00
Other International Funds
Artisan Global Equity Fund Class I USD Acc $ 12.48 - -0.27 0.00 China Consumer A-GBP £ 12.80 - -0.18 0.00 Gb.Val.Ex-Jap.Fd.USD $ 109.07 - -1.64 0.00
EUR Accumulating Class € 11.08 - -0.09 0.00 European Currencies High Yield Bd A F € 20.73 - -0.16 0.00
Hermes UK Small & Mid Cap Fund Class R Acc € 4.23 4.23 -0.16 0.00 Invest AD - Iraq Opportunity Fund $ 55.63 - 0.82 0.00
Artisan Global Opportunities I USD Acc $ 10.70 - -0.22 0.00 EUR Accumulating Class (H) € 8.86 - -0.04 0.00 China Focus A-GBP £ 3.70 - -0.05 0.77 Gb.Val.Ex-Japan Fd.Yen ¥ 12395.00 - -344.00 0.00
Barings (Luxembourg) (LUX) Hermes US All Cap Equity Class F Stg £ Acc £ 0.92 0.92 -0.02 - European Equity Alpha A F € 36.96 - -1.37 0.00
Invest AD - Emerging Africa Fund $ 878.56 - -1.33 0.00
Artisan Global Value Fund Class I USD Acc $ 14.24 - -0.23 0.00 FCA Recognised Global Financial Services A-GBP £ 0.39 - -0.02 0.12
EUR Distributing Class € 10.49 - -0.09 3.66 Gb.Val.Fd. Euro € 121.95 - -1.60 0.00 European Property A F € 31.61 - -1.18 0.00
Hermes US All Cap Equity Class R € Acc € 1.70 1.70 -0.05 - Invest AD - GCC Focus Fund $ 1284.94 - -5.26 0.00
Russia A GBP Inc F £ 23.03 - -0.59 0.00
Artisan US Value Equity Fund Class I USD Acc $ 9.59 - -0.11 0.00 EUR Distributing Class (H) € 8.38 - -0.04 3.76 Global Health Care A-GBP £ 0.52 - -0.01 0.00 Gb.Val.Fd.Sterling £ 115.18 - -0.58 0.00
Hermes US SMID Equity Fund Class F Acc £ 1.50 1.50 -0.03 0.00 Eurozone Equity Alpha A F € 9.85 - -0.45 0.00

GBP Distributing Class £ 9.91 - 0.01 3.50 Global Industrials A-GBP £ 0.60 - 0.00 0.00 Gb.Val.Fd.USD $ 97.99 - -1.25 0.00 Global Bond A F $ 38.32 - -0.01 0.00
Hermes US SMID Equity Fund Class R Acc € 3.01 3.01 -0.08 0.00
BlackRock (JER)
Ashmore Sicav (LUX)
Regulated GBP Distributing Class (H) £ 8.47 - -0.04 3.76 Global Inflation-Linked Bd A-GBP-Hdg £ 1.15 - 0.00 0.56 Low Volatility Gb.Eq.Fd.Euro € 97.42 - -1.06 - Global Brands A F $ 92.41 - -2.72 0.00
2 rue Albert Borschette L-1246 Luxembourg
FCA Recognised BlackRock UK Property £ 41.71 - 0.04 3.23 Global Real Asset Securities £ 1.29 - -0.01 0.00
USD Accumulating Class $ 8.94 - -0.04 0.00 INDIA VALUE INVESTMENTS LIMITED (INVIL) Low Volatility Gb.Eq.Fd.Sterl £ 101.51 - -0.28 - Global Convertible Bond A F $ 39.34 - -0.41 0.00
Ashmore SICAV Emerging Market Debt Fund $ 86.84 - -0.43 9.10 Blackrock UK Long Lease £ 1079.94 - -0.01 0.00 www.invil.mu
Dodge & Cox Worldwide Funds plc-Global Stock Fund Global Technology A-GBP £ 0.23 - -0.01 0.00 Low Volatility Gb.Eq.Fd.USD $ 95.86 - -1.01 -
Other International Funds Global Property A F $ 25.23 - -0.72 0.00
Ashmore SICAV Emerging Market Frontier Equity Fund $ 135.23 - 0.22 0.76 BLK Intl Gold & General $ 4.68 4.94 0.20 0.00 USD Accumulating Share Class $ 13.42 - -0.33 0.00
Global Telecomms A-GBP £ 0.28 - -0.01 1.13 NAV £ 8.06 - 0.04 0.00 GAM Low Volatility Gb.Eq.Fd.Yen ¥ 8642.00 - -199.00 - Indian Equity A F $ 31.56 - -0.19 0.00
Ashmore SICAV Emerging Market Total Return Fund $ 74.80 - -0.41 6.57 GBP Accumulating Share Class £ 15.30 - -0.30 0.00 funds@gam.com, www.jbfundnet.com
India Focus A-GBP £ 4.12 - -0.05 0.00 Latin American Equity A F $ 33.56 - -0.74 0.00
Regulated
Ashmore SICAV Global Small Cap Equity Fund $ 112.31 - -0.91 0.00 BONHOTE GBP Distributing Share class £ 11.13 - -0.22 1.03 MMIP Investment Management Limited (GSY)
Other International Funds
Latin America A-GBP £ 1.27 - -0.02 0.67 Intercapital Asset Management Ltd (HRV) Ms EF Special Val. EUR/A € 128.68 - -1.22 1.17 Short Maturity Euro Bond A F € 20.31 - -0.01 0.00
Ashmore SICAV Local Currency Fund $ 79.76 - -0.33 0.00 Masarykova ul. 1, 10000, Zagreb, Croatia Regulated
EUR Accumulating Share Class € 18.01 - -0.50 0.00
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6607.00 - -42.00 2.29 Sterling Cash Fund A-ACC-GBP £ 1.00 - 0.00 0.00 www.icam.hr, Tel; +385 1 4825 868 Strategy Balanced-CHF/B SFr 142.43 - -1.15 0.00 Multi-Manager Investment Programmes PCC Limited US Dollar Liquidity A F $ 13.03 - 0.00 0.00
EM Mkts Corp.Debt USD F $ 80.66 - -0.18 9.89 Dodge & Cox Worldwide Funds plc-International Stock Fund Other International Funds
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9749.00 - -171.00 0.93 Strategy Balanced-EUR € 146.66 - -1.14 0.00 European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00 US Growth A F $ 55.59 - -2.45 0.00
EM Mkts Loc.Ccy Bd USD F $ 74.23 - -0.52 3.75 USD Accumulating Share Class $ 11.27 - -0.28 0.00 Capital One Bond Fund (Ex-YU) HRK 204.87 - 0.05 -
Findlay Park Funds Plc (IRL)
Strategy Balanced-USD/B $ 123.39 - -0.89 0.00 Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00 US Growth AH F € 38.48 - -1.70 0.00
EUR Accumulating Share Class € 11.86 - -0.33 0.00 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
Capital Two Equity Fund (Ex-YU) HRK 88.40 - -0.02 -
Braemar Group PCC Limited (GSY) FCA Recognised Strategy Growth-CHF/B SFr 85.94 - -1.06 0.00 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00 US Growth AX F £ 38.61 - -1.41 0.00
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
Regulated
American Fund USD Class $ 73.96 - -1.17 0.00 Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00
USD Accumulating Share Class $ 15.66 - -0.37 0.00 Strategy Growth-EUR € 107.00 - -1.32 0.00 US Property A F $ 63.48 - -2.29 0.00
UK Agricultural Class A £ 1.25 - 0.00 0.00 Intrinsic Value Investors (IVI) LLP (IRL)
American Fund GBP Hedged £ 40.29 - -0.65 0.00 UK Equity Fd Cl A Series 01 £ 2318.62 2346.23 -38.83 0.00
GBP Accumulating Share Class £ 16.88 - -0.32 0.00 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Strategy Inc-CHF/B SFr 116.07 - -0.46 0.00
UK Agricultural Class B £ 1.37 - 0.00 0.00
American Fund GBP Unhedged £ 51.23 - -0.59 - FCA Recognised
GBP Distributing Share Class £ 10.74 - -0.20 0.63 Strategy Inc-EUR/B € 155.01 - -0.62 0.00 Diversified Absolute Rtn Fd USD Cl AF2 $ 1589.77 - 3.37 0.00 Morgens Waterfall Vintiadis.co Inc
Student Accom Class B £ 0.55 - -0.17 0.00 IVI European Fund EUR € 15.93 - -0.53 0.00
Latin American Fund USD Class $ 10.61 - 0.20 0.00 Other International Funds
Strategy Inc-USD/B $ 143.01 - -0.40 0.00 Diversified Absolute Return Stlg Cell AF2 £ 1610.37 - 2.62 0.00
Aspect Capital Ltd (UK) EUR Accumulating Share Class € 18.15 - -0.50 0.00
IVI European Fund GBP £ 16.71 - -0.35 0.68 Phaeton Intl (BVI) Ltd (Est) $ 366.51 - -13.82 0.00
Other International Funds Latin American Fund GBP Unhedged £ 7.40 - 0.19 -
CG Asset Management Limited (IRL)
Aspect Diversified USD $ 447.51 - 2.45 0.00 Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland LNG Capital (CYM)
00 353 1 434 5098 Kingsbury House, 15-17 King St, London SW1Y 6QU
Aspect Diversified EUR € 268.57 - 1.42 - Foord Asset Management
FCA Recognised www.lngcapital.com, Tel: 0207 839 3456
Other International Funds
Capital Gearing Portfolio Fund Plc £ 27179.29 27179.29 -162.65 0.61 Regulated
Aspect Diversified GBP £ 137.71 - 0.74 0.00
Foord International Trust $ 32.19 - -0.25 0.00
CG Portfolio Fund Plc LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 -
Aspect Diversified CHF SFr 128.23 - 0.67 0.00
Foord Global Equity Fund_Class B $ 11.09 - -0.17 0.00
Real Return Cls A £ 174.65 174.65 -2.68 1.66 LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 -
Aspect Diversified Trends USD $ 132.52 - 0.77 0.00 Dragon Capital Group Kames Capital VCIC (IRL)
Invesco (LUX)
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Natixis International Funds (Lux) I SICAV (LUX)
Dollar Fund Cls D £ 135.85 135.85 -3.13 1.54 1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam LNG Europa Credit Fund USD $ 1183.45 - -15.60 -
Aspect Diversified Trends EUR € 132.56 - 0.78 0.00 Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
Fund information, dealing and administration: funds@dragoncapital.com Franklin Templeton International Services Sarl (IRL) FCA Recognised
Capital Value Fund Cls V £ 131.69 131.69 -0.86 0.26 FCA Recognised FCA Recognised
Other International Funds JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Absolute Return Bond B GBP Acc 1076.94 - -0.44 -
Aspect Diversified Trends GBP £ 137.79 - 0.82 0.00 Invesco Management SA
Other International Funds Harris Global Equity R/A (USD) $ 213.51 213.51 -5.64 0.00
Vietnam Growth Fund (VGF) NAV $ 23.26 - 0.42 0.00 Marlborough International Management Limited (GSY)
Franklin Emerging Market Debt Opportunities Fund Plc Invesco Active Multi-Sector Credit Fund A € 2.80 - -0.01 0.00 Eq Market Neutral B Acc 1016.61 - -1.82 - Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
Cedar Rock Capital Limited (IRL) Harris US Equity Fund R/A (USD) $ 182.36 182.36 -4.04 0.00
Vietnam Property Fund (VPF) NAV $ 0.92 - 0.00 0.00 Franklin Emg Mkts Debt Opp CHFSFr 16.44 - -0.39 8.50 FCA Recognised
Atlantas Sicav (LUX) Regulated Invesco Asia Balanced A dist $ 13.32 - -0.06 3.95 Eq Market Neutral Plus B Acc 1023.39 - -4.22 -
Regulated Marlborough North American Fund Ltd £ 30.49 32.49 -0.13 0.00 Harris Concentrated US Equity R/A (USD) $ 137.34 137.34 -3.43 0.00
Cedar Rock Capital Fd Plc $ 356.72 - 11.39 0.00 Franklin Emg Mkts Debt Opp EUR € 11.55 - -0.30 7.58 Invesco Asia Consumer Demand Fund A income $ 11.44 - -0.03 0.26 High Yield Global Bond A GBP Inc 493.80 - -4.55 5.47
American Dynamic $ 3188.03 - 80.07 0.00 Marlborough Tiger Fund Ltd F £ 23.22 24.74 -0.67 0.00 Loomis Sayles Strategic Alpha R/A (USD) $ 106.82 106.82 -0.80 -
Cedar Rock Capital Fd Plc £ 394.82 - 18.15 0.00
DSM Capital Partners Funds (LUX)
Franklin Emg Mkts Debt Opp GBP £ 9.76 - -0.19 7.26 Invesco Asia Infrastructure (A) $ 11.32 - -0.06 0.85 High Yield Global Bond B GBP Inc 1026.71 - -9.46 5.47
American One $ 3023.76 - 78.19 0.00 www.dsmsicav.com
Cedar Rock Capital Fd Plc € 343.20 - 11.54 0.00 Regulated Franklin Emg Mkts Debt Opp SGD S$ 21.34 - -0.51 6.48 Invesco Asia Opportunities Equity A $ 93.86 - -0.46 0.00 Investment Grade Global Bd A GBP Inc 548.73 - 0.73 2.49
Bond Global € 1394.85 - 0.26 0.00 Marwyn Asset Management Limited (CYM) Natixis International Funds (Dublin) I plc (IRL)
Global Growth I2 Acc € 115.13 - -4.44 0.00
Franklin Emg Mkts Debt Opp USD $ 16.29 - -0.42 7.37 Kames Global Equity Income B GBP Acc 1122.03 - -13.51 - Regulated Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
Invesco Balanced Risk Allocation Fund A € 14.28 - 0.01 0.00
Eurocroissance € 852.52 - 18.71 0.00 Regulated
Global Growth I1 Eur € 86.08 - -3.32 -
Charles Schwab Worldwide Funds Plc (IRL)
Kames Global Equity Income B GBP Inc 1063.17 - -12.80 -
Marwyn Value Investors £ 440.64 - -10.28 0.00
Invesco Emerging Europe Equity Fund A $ 6.81 - -0.21 0.00 Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.36 12.36 0.00 1.26
Far East $ 591.54 - -21.87 0.00 Regulated
Frontier Capital (Bermuda) Limited Strategic Global Bond A GBP Inc 1067.59 - -2.66 0.77
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Invesco Emerging Local Currencies Debt A Inc $ 6.49 - -0.03 7.14 Loomis Sayles High Income R/D (USD) $ 6.99 6.99 -0.07 12.94
Edinburgh Partners Limited (IRL) Other International
Meridian Fund Managers Ltd
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Invesco Emerging Mkt Quant.Eq. A $ 8.26 - -0.05 0.00 Strategic Global Bond B GBP Inc 605.64 - -1.50 1.27
Atlantis Investment Management Ltd (IRL) Commercial Property-GBP Class £ 71.42 - -0.53 - Other International Funds Loomis Sayles Multisector Income R/D (GBP) $ 11.08 11.08 -0.08 5.96
2nd Floor, 13 St Swithin's Lane, London EC4N 8AL Dealing - Fax only - +353 1 434 5230
Chartered Asset Management Pte Ltd FCA Recognised Global Real Estate-GBP C Class £ 45.26 - -0.50 - Invesco Energy A $ 14.56 - -0.05 0.00 Global Gold & Resources Fund $ 184.00 - 2.35 -
www.atlantis-investmenet.com, Tel: 0207 877 3377
Other International Funds Edinburgh Partners Opportunities Fund PLC
Regulated Invesco Euro Corporate Bond Fund (A) € 16.65 - -0.03 0.00 Global Energy & Resources Fund $ 31.18 - -3.49 -
CAM-GTF Limited $ 265507.51 265507.52 332.05 0.00 European Opportunities I EUR € 2.10 - -0.10 2.53
Atlantis China Fund $ 6.44 - 0.00 0.00
Invesco Euro Inflation Linked Bond A € 15.45 - -0.09 0.00
Wednesday 10 February 2016 ★ FINANCIAL TIMES 21

MANAGED FUNDS SERVICE

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

Odey Allegra International EUR O € 155.30 - -3.38 0.00 Pictet-European Equity Selection-I EUR F € 541.80 - -22.57 0.00 SWMC Small Cap European Fund B EUR € 11873.69 - -374.09 0.00 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 792.57 - -48.66 -

Odey Allegra Developed Markets USD I $ 110.35 - -2.98 0.00 Pictet-European Sust Eq-I EUR F € 218.48 - -7.19 0.00 SWMC Emerging European Fund B EUR € 8035.28 - -271.65 0.00 Value Partners Hong Kong Limited (IRL)
www.valuepartners.net, fis@vp.com.hk
Odey European Focus Fund € 16.36 - -0.40 0.51 Pictet-Global Bds Fundamental I USD $ 118.63 - 0.27 0.00 Regulated Zadig Gestion (Memnon Fund) (LUX)
FCA Recognised
Value Partners Asia ex-Japan Equity Fund $ 7.80 - 0.15 -
Odey Atlas Fund GBP I S £ 1.09 - 0.00 0.00 Pictet-Global Bonds-I EUR € 166.64 - 0.74 0.00
Memnon European Fund I GBP £ 105.89 - -3.64 0.00
Value Partners Classic Equity Fund USD Z Unhedged $ 9.53 - 0.01 0.00
Odey Giano European Fund EUR R € 121.19 - 1.36 0.00 Pictet-Global Emerging Currencies-I USD F $ 94.54 - -0.36 0.00
New Capital Fund Management Ltd (IRL) Platinum Capital Management Ltd E.I. Sturdza Strategic Management Limited (GSY) Value Partners Classic Equity Fund CHF HedgedSFr 9.95 - 0.01 0.00
Leconfield House, Curzon Street, London, W1J 5JB
Odey Naver Fund EUR I € 124.56 - -0.18 0.00 Pictet-Global Emerging Debt-I USD F $ 350.53 - -1.32 0.00
Other International Funds Regulated Zebedee Capital Partners LLP (CYM)
FCA Recognised Value Partners Classic Equity Fund EUR Hedged € 10.06 - 0.00 0.00 Regulated
Odey Odyssey USD I $ 137.14 - 3.00 0.00 Pictet-Global Megatrend Selection-I USD F $ 194.08 - -5.46 0.00 Platinum All Star Fund - A (Est) $ 115.92 - - - Nippon Growth Fund Limited ¥ 86581.00 - -1992.00 0.00
New Capital UCITS Funds Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
RobecoSAM (LUX) Value Partners Classic Equity Fund GBP Hedged £ 10.29 - 0.00 0.00
Odey Orion Fund EUR I € 115.15 - -0.01 0.00 Pictet-Greater China-I USD F $ 384.76 - -6.59 0.00 Platinum Global Dividend Fund - A (Est) $ 51.04 - - - Strat Evarich Japan Fd Ltd JPY ¥ 78682.00 - -2966.00 0.00
Asia Pac Bd USD Inst Inc $ 90.97 - -0.06 3.43 Tel. +41 44 653 10 10 http://www.robecosam.com/ Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Regulated Value Partners Classic Equity Fund GBP Unhedged £ 11.03 - 0.03 0.00
Odey Swan Fund EUR I € 102.29 - 3.84 0.00 Pictet-Health-I USD $ 231.26 - -5.32 0.00 Platinum Maverick Enhanced Fund Limited (Est) $ 84.66 - - 0.00 Strat Evarich Japan Fd Ltd USD $ 776.87 - -29.37 0.00
Asia Pac Bd USD Ord Inc $ 92.93 - -0.07 2.69 Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
RobecoSAM Sm.Energy/A £ 10.70 - -0.23 1.67 Value Partners Classic Equity USD Hedged $ 11.71 - 0.00 0.00
Odey European Absolute Return GBP S £ 98.79 - 1.40 0.00 Pictet-High Dividend Sel I EUR F € 143.44 - -2.02 0.00
Asia Pac Eq EUR Ord Inc € 76.20 - 0.27 3.52
RobecoSAM Sm.Energy/N € 10.46 - -0.31 0.00 Value Partners Greater China Equity Fund $ 7.30 - 0.08 -
Pictet-India Index I USD $ 87.88 - -1.38 0.00 E.I. Sturdza Funds PLC (IRL)
Asia Pac Eq GBP Ord Inc £ 78.81 - 0.29 4.14 Regulated
RobecoSAM Sm.Materials/A £ 112.13 - -0.86 1.52 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 8.95 - 0.03 -
Odey Wealth Management (CI) Ltd (IRL)
Asia Pac Eq USD Ord Inc $ 79.74 - 0.29 3.52 www.odey.com/prices
Pictet-Indian Equities-I USD F $ 390.43 - -10.01 0.00
Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 926.30 - 4.49 0.00 Data Provided by
RobecoSAM Sm.Materials/N € 124.68 - -1.95 0.00 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 8.40 - 0.07 -
FCA Recognised Pictet-Japan Index-I JPY F ¥ 13707.46 - -812.94 0.00
Asia Pac Eq USD Inst Acc $ 85.85 - 0.32 0.00 Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1091.87 - 5.31 0.00
Odey Opportunity EUR I € 206.90 - -1.02 0.00 RobecoSAM Sm.Materials/Na € 86.05 - -1.35 - Value Partners Health Care Fund USD Class A Unhedged $ 8.39 - 0.07 -
Pictet-Japanese Equities Opp-I JPY F ¥ 8012.08 - -539.73 0.00
Asia Pac Eq USD Inst Inc $ 88.91 - 0.33 4.28 Nippon Growth (UCITS) Fund JPY Class A shares ¥ 85907.00 - 430.00 0.00
RobecoSAM Gl.Small Cap Eq/A £ 71.48 - -1.17 1.34
Pictet-Japanese Equity Selection-I JPY F ¥ 11832.38 - -803.77 0.00 Polar Capital Funds Plc (IRL)
Dyn Europ Eq EUR Ord Inc € 160.72 - -1.57 0.72 Regulated Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 72035.00 - 360.00 0.00
Omnia Fund Ltd RobecoSAM Gl.Small Cap Eq/N € 137.63 - -3.36 0.00 Veritas Asset Management LLP (IRL)
Pictet-LATAM Index I USD $ 45.12 - -0.84 0.00
Asset Management
Dyn Europ Eq GBP Ord Inc £ 170.37 - -1.67 1.08 Other International Funds Asian Financials I USD $ 254.65 254.65 -2.49 1.28 Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 77978.00 - -4234.00 0.00 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
RobecoSAM Sustainable Gl.Eq/B € 159.00 - -3.23 0.00
Asset Management
Veritas Funds Plc
Estimated NAV $ 813.03 - -20.81 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 103.73 - -1.27 0.00
Biotechnology I USD $ 13.94 13.94 -0.47 0.00 Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 46696.00 - 235.00 0.00
Dyn Europ Eq USD Ord Inc $ 160.40 - -1.59 0.71
Pictet-Pacific Ex Japan Index-I USD F $ 299.24 - -3.17 0.00
RobecoSAM Sustainable Gl.Eq/N € 137.37 - -2.78 0.00
www.veritas-asset.com
+353 1 635 6799
www.morningstar.co.uk
China Equity EUR Ord Acc € 111.57 - 0.01 0.00 European Income Acc EUR € 10.12 10.12 -0.34 0.00 Strategic China Panda Fund USD $ 1923.91 - -8.15 0.00
RobecoSAM S.HealthyLiv/B € 162.28 - -3.09 0.00 FCA Recognised Data as shown is for information purposes only. No
Pictet-Premium Brands-I EUR F € 132.62 - -3.61 0.00 Institutional offer is made by Morningstar or this publication.
China Equity GBP Ord Acc £ 116.00 - 0.03 0.00 European Ex UK Inc EUR Acc € 8.73 8.73 -0.29 - Strategic China Panda Fund Hedged EURO € 1875.84 - -8.65 0.00
RobecoSAM S.HealthyLiv/N € 151.39 - -2.87 0.00
Pictet-Quality Global Equities I USD $ 127.05 - -1.68 0.00 Veritas Asian Fund A USD H $ 287.42 - -2.89 0.46
China Equity USD Ord Acc $ 113.59 - 0.02 0.00 Financial Opps I USD $ 10.07 - -0.35 2.05 Strategic China Panda Fund Hedged Sterling £ 1900.81 - -8.73 0.00
RobecoSAM S.HealthyLiv/Na £ 102.42 - -1.11 -
Pictet-Russia Index I USD $ 42.20 - -1.48 0.00 Veritas Asian Fund A GBP H £ 367.61 - -3.36 0.25
China Equity USD Inst Acc $ 116.95 - 0.02 0.00 GEM Growth I USD $ 7.60 - -0.05 0.00 Strategic Euro Bond Accumulating Class CHFSFr 981.11 - -0.12 0.00
RobecoSAM S.Water/A £ 160.39 - -1.37 1.23
Pictet-Russian Equities-I USD F $ 37.35 - -1.16 0.00 Veritas Asian Fund A EUR H € 291.18 - -5.39 0.23
Europ. Equity Fd EUR € 95.82 - -0.93 - GEM Income I USD $ 8.57 - -0.05 0.00 Strategic Euro Bond Institutional Class EUR € 1010.08 - -0.07 0.00
RobecoSAM S.Water/N € 149.02 - -2.47 0.00
Optima Fund Management Veritas China Fund A USD $ 130.05 - -0.25 0.39
Guide to Data
Pictet-Security-I USD F $ 174.69 - -7.19 0.00
Europ. Equity Fd GBP £ 94.42 - -0.93 - Global Alpha I USD $ 11.23 11.23 -0.27 0.00 Strategic Euro Bond Fund Accumulating Class Shares € 1131.98 - -0.10 0.00
Other International Funds
Pictet-Select-Callisto I EUR € 104.08 - -0.01 0.00 Veritas China Fund A GBP £ 134.59 - -0.25 0.40
Europ. Equity Fd USD $ 94.63 - -0.94 - Cuttyhunk Fund II Limited $ 1336.51 - -6.16 0.00 Global Convertible I USD $ 10.70 10.70 -0.09 0.00 Strategic Euro Bond Fund Distributing Class Shares € 1021.85 - -0.10 1.33
Pictet-Small Cap Europe-I EUR F € 971.74 - -48.31 0.00 Veritas China Fund A EUR € 128.50 - -0.24 0.40
Global Val.Cr.Fd GBP Ord Inc £ 106.08 - -0.32 3.70 JENOP Global Healthcare Fund Ltd $ 12.95 - -0.29 0.00 Global Insurance I GBP £ 4.00 - 0.00 0.00 Strategic European Smaller Companies Fund EUR Class € 893.44 - -30.83 - The fund prices quoted on these pages are supplied by
the operator of the relevant fund. Details of funds
Pictet-ST.MoneyMkt-I € 140.44 - 0.00 0.00 Veritas Global Equity Income Fund D USD $ 103.07 - -2.17 4.51 published on these pages, including prices, are for the
Global Val.Cr.Fd USD Inst Acc $ 119.92 - -0.04 0.00 OPTIKA Fund Limited - Cl A $ 93.51 - -1.69 - Global Technology I USD $ 18.77 - -0.72 0.00 Strategic Global Bond RMB Acc $ 1063.88 - 3.81 0.00
purpose of information only and should only be used
Pictet-ST.MoneyMkt JPY I USD ¥ 101529.47 - 3.55 0.00 Veritas Global Equity Income Fund D EUR € 178.06 - -5.27 4.43 as a guide. The Financial Times Limited makes no
Global Val.Cr.Fd GBP Ord Acc £ 172.18 - -0.51 0.00 Optima Fd NAV $ 83.88 - -1.81 0.00 Healthcare Blue Chip Fund I USD Acc $ 9.41 9.41 -0.19 0.00 Strategic Global Bond USD Acc $ 1058.09 - 3.52 0.00
representation as to their accuracy or completeness
Pictet-ST.MoneyMkt-ICHF SFr 124.08 - 0.01 0.00 Veritas Global Equity Income Fund D GBP £ 138.83 - -2.93 4.27 and they should not be relied upon when making an
Global Val.Cr.Fd USD Ord Acc $ 161.67 - -0.48 0.00 Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00 Healthcare Opps I USD $ 32.22 - -0.99 0.00 Schroder Property Managers (Jersey) Ltd Strategic US Momentum and Value Fund $ 657.67 - -19.43 0.00
investment decision.
Pictet-ST.MoneyMkt-IUSD $ 135.41 - 0.00 0.00 Other International Funds Veritas Global Focus Fund D USD $ 23.20 - -0.41 0.71
Global Val.Cr.Fd EUR Ord Acc € 150.24 - -0.45 0.00 The Dorset Energy Fd Ltd NAV (Est) $ 22.31 - -0.53 0.00 Income Opportunities B2 I GBP Acc £ 1.60 1.60 -0.02 0.00 Strategic US Momentum & Value Fund USD I Class $ 437.30 - -12.91 0.00
Indirect Real Estate SIRE £ 134.51 140.66 1.17 2.78 The sale of interests in the funds listed on these pages
Pictet-Timber-I USD F $ 123.44 - -3.86 0.00 Veritas Global Focus Fund D EUR € 20.83 - -0.55 0.69 may, in certain jurisdictions, be restricted by law and
Swiss Select Equity Inst Acc SFr 109.83 - 0.09 0.00 Platinum Fd Ltd $ 79.48 - 0.88 0.00 Japan Alpha I JPY ¥ 166.36 166.36 -12.52 0.00 Strategic US Momentum and Value EUR Hedged Class EUR € 458.36 - -13.55 0.00
the funds will not necessarily be available to persons
Pictet Total Ret-Agora I EUR € 114.94 - -0.68 0.00 Veritas Global Focus Fund D GBP £ 27.30 - -0.49 0.65 in all jurisdictions in which the publication circulates.
Swiss Select Equity Ord Acc SFr 108.48 - 0.09 0.00 Platinum Fd Ltd EUR € 15.40 - 0.18 0.00 Japan I JPY ¥ 1647.83 - -112.63 1.08 Strategic US Momentum and Value CHF Hedged Class CHFSFr 455.47 - -13.41 0.00
SIA (SIA Funds AG) (LUX) Persons in any doubt should take appropriate
Pictet Total Ret-Corto Europe I EUR € 130.37 - -1.46 0.00 Veritas Global Focus Fund A GBP £ 26.36 - -0.47 0.38 professional advice. Data collated by Morningstar. For
US Growth USD Ord Acc $ 172.33 - -5.30 0.00 Platinum Japan Fd Ltd $ 50.55 - 0.71 0.00 North American I USD $ 15.67 15.67 -0.31 0.00 Regulated
other queries contact reader.enquiries@ft.com +44
Pictet Total Ret-Divers Alpha I EUR € 103.85 - -0.40 0.00 LTIF Classic € 285.90 - -10.32 0.00 The Hartford International Funds (IRL) Veritas Global Focus Fund A EUR € 12.14 - -0.32 0.39 (0)207 873 4211.
US Growth EUR Ord Acc € 164.73 - -5.09 0.00 Optima Partners Global Fd $ 13.29 - -0.23 0.00 UK Absolute Equity I GBP £ 12.38 12.38 -0.09 0.00
Regulated
Pictet Total Ret-Kosmos I EUR € 108.14 - 0.06 0.00 LTIF Natural Resources € 63.15 - -1.95 0.00 Veritas Global Focus Fund A USD $ 22.38 - -0.40 0.41 The fund prices published in this edition along with
US Growth GBP Ord Acc £ 172.94 - -5.42 0.00 Optima Partners Focus Fund A $ 14.77 - -0.59 0.00 Gbl Govt Bond (Ex Japan) Index (GBP) £ 1714.64 - 18.40 0.00 additional information are also available on the
Pictet Total Ret-Mandarin I USD $ 110.31 - -0.17 0.00 Polar Capital LLP (CYM) LTIF Stability A ACCU € 146.82 - -4.36 0.00 Veritas Global Focus Fund C GBP £ 28.62 - -0.52 0.00 Financial Times website, www.ft.com/funds. The
US Growth USD Inst Acc $ 164.26 - -7.17 0.00 UK Corporate Bond £ 1569.81 - 3.06 0.00
Regulated funds published on these pages are grouped together
Oryx International Growth Fund Ltd Pictet-US Equity Selection-I USD $ 166.74 - -4.09 0.00 Veritas Global Focus Fund C EUR € 21.94 - -0.57 0.00 by fund management company.
Wealthy Nat Bd EUR Inst Inc € 105.56 - 0.14 3.81 ALVA Convertible A USD $ 128.02 - -0.62 0.00 Gilt £ 1639.85 - 9.04 0.00
Other International Funds SIA (SIA Funds AG) (CH) Veritas Global Focus Fund C USD $ 24.37 - -0.44 0.00
Pictet-US High Yield-I USD F $ 139.70 - -1.45 0.00 Prices are in pence unless otherwise indicated. The
Wealthy Nat Bd GBP Inst Inc £ 109.80 - 0.16 3.77 European Conviction A EUR € 141.67 - -2.98 0.00 Other International Fds Global Eq (Ex Japan) Index Fund ¥ 1.24 - -0.02 0.00 change, if shown, is the change on the previously
NAV (Fully Diluted) £ 7.21 - 0.28 0.00
Pictet-USA Index-I USD F $ 164.03 - -2.34 0.00 Veritas Global Equity Income Fund A GBP £ 133.00 - -2.80 4.28 quoted figure (not all funds update prices daily). Those
Wealthy Nat Bd EUR Ord Inc € 104.74 - 0.24 3.54 European Forager A EUR € 173.00 - -5.02 0.00 LTIF Stability Growth SFr 186.10 - 0.40 - Global Eq (ex Japan) Class HJ4 ¥ 1.29 - -0.02 0.00 designated $ with no prefix refer to US dollars. Yield
Pictet-USD Government Bonds-I F $ 655.23 - 4.71 0.00 Veritas Global Equity Income Fund A EUR € 172.92 - -5.11 4.44 percentage figures (in Tuesday to Saturday papers)
Wealthy Nat Bd GBP Ord Inc £ 110.42 - 0.15 3.48 OTP Asset Management Romania SAI SA ((ROM)) LTIF Stability Inc Plus SFr 159.70 - 0.30 0.56 Global Eq (ex Japan) Class JP5 ¥ 1.32 - -0.05 0.00 allow for buying expenses. Prices of certain older
www.otpfonduri.ro Pictet-USD Short Mid-Term Bonds-I F $ 130.39 - 0.15 0.00 Veritas Global Equity Income Fund A USD $ 99.15 - -2.08 4.51 insurance linked plans might be subject to capital
Wealthy Nat Bd USD Ord Inc $ 107.56 - 0.26 3.47 Polunin Capital Partners Ltd Global Eq Ex Japan Index Fund (Hedge) ¥ 1.21 - -0.04 0.00 gains tax on sales.
Other International Funds
Pictet-USD Sov.ST.Mon.Mkt-I $ 102.71 - 0.00 0.00 Other International Funds Veritas Global Equity Income Fund C GBP £ 159.91 - -3.37 -
New Capital Alternative Strategies
OTP Comodisro RON 16.90 - 0.00 - Standard Life Wealth (JER)
Gbl Govt Bond (Ex Japan) Index ¥ 1.31 - -0.01 0.00 Guide to pricing of Authorised Investment Funds:
Emerging Markets Active $ 39.58 - -1.17 - PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
All Weather Fd USD Cls $ 117.83 - -0.64 0.00 Pictet-Water-I EUR F € 255.37 - -5.27 0.00 Veritas Global Equity Income Fund C EUR € 207.80 - -6.14 - (compiled with the assistance of the IMA. The
OTP Obligatiuni RON 14.34 - 0.00 - FCA Recognised Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.28 - -0.01 0.00 Investment Management Association, 65 Kingsway,
Luxcellence Em Mkts Tech $ 866.32 - 14.64 0.00 Standard Life Offshore Strategy Fund Limited London WC2B 6TD.
All Weather Fd EUR Cls € 105.67 - -0.67 0.00 Veritas Global Equity Income Fund C USD $ 118.45 - -2.49 -
OTP Avantisro RON 7.93 - -0.14 - Japan Equity Index Fund ¥ 0.90 - -0.05 0.00 Tel: +44 (0)20 7831 0898.)
Pimco Fds: Global Investors Series Plc (IRL) Polunin Developing Countries $ 666.32 671.98 0.45 0.00 Bridge Fund £ 1.4932 - -0.0243 2.00
All Weather Fd GBP Cls £ 113.91 - -0.67 0.00 Veritas Global Real Return Fund A USD $ 20.16 - -0.24 0.30
OTP Euro Bond € 12.43 - 0.00 - PIMCO Europe Ltd,11 Baker Street,London W1U 3AH Japan Equity Class JP3 ¥ 1.09 - -0.06 0.00 OEIC: Open-Ended Investment Company. Similar to a
Polunin Discovery - Frontier Markets $ 1328.54 - 24.04 0.00 Diversified Assets Fund £ 1.1282 - -0.0067 3.08 unit trust but using a company rather than a trust
Tactical Opps USD Cls $ 110.44 - -8.59 0.00 http://gisnav.pimco-funds.com/ Veritas Global Real Return Fund A GBP £ 11.30 - -0.13 0.32
OTP Dollar Bond $ 10.61 - 0.00 - Dealing: +44 20 3640 1000 structure.
Polunin Small Cap $ 1289.62 1305.74 22.70 0.00 Global Equity Fund £ 1.7103 - -0.0385 0.68
Tactical Opps EUR Cls € 92.41 - -7.02 0.00 PIMCO Funds: +44 (0)20 3640 1407 Veritas Global Real Return Fund A EUR € 11.89 - -0.14 0.12
OTP Premium Return RON 1059.71 - -4.44 - The National Investor (TNI) Different share classes are issued to reflect a different
FCA Recognised Global Balanced Fund - Income Units £ 1.2821 - -0.0085 2.15 www.tni.ae Retail currency, charging structure or type of holder.
Tactical Opps GBP Cls £ 103.51 - -7.93 0.00
Capital Securities Inst Acc $ 13.96 - -0.24 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY) Other International Funds Veritas Asian Fund B USD $ 200.16 - -2.02 0.00
Global Balanced Fund - Accumulations Units £ 1.5001 - -0.0100 2.12 Selling price: Also called bid price. The price at which
Regulated TNI Blue Chip UAE Fund * AED 9.33 - -0.08 0.00
Commodity Real Return Fund Inst Acc $ 5.45 - -0.02 0.00 units in a unit trust are sold by investors.
Global Fixed Interest Fund £ 0.9461 - -0.0035 5.52 Veritas Asian Fund B GBP £ 270.88 - -2.48 0.00
Monument Growth 02/02/2016 £ 471.54 476.61 14.27 1.32
TNI Funds Ltd (BMU) Buying price: Also called offer price. The price at
Credit Absolute Return Fund Inst Acc $ 10.69 - -0.06 0.00 Veritas Asian Fund B EUR € 214.39 - -3.98 0.00
Sterling Fixed Interest Fund £ 0.8304 - 0.0006 4.30 which units in a unit trust are bought by investors.
MENA Hedge Fund $ 886.58 - -52.38 0.00
Diversified Income - Inst Acc $ 18.69 - -0.13 0.00 Includes manager’s initial charge.
Prusik Investment Management LLP (IRL) UK Equity Fund £ 1.6903 - -0.0350 3.11 Veritas China Fund B GBP £ 130.44 - -0.25 0.00
TNI Funds Plc (Ireland)
Diversified Income Durat Hdg Fund Inst Acc $ 10.64 - -0.12 0.00 Enquiries - 0207 493 1331 Single price: Based on a mid-market valuation of the
MENA UCITS Fund * $ 1006.84 - 22.69 0.00 Veritas China Fund B EUR € 163.91 - 1.09 0.00 underlying investments. The buying and selling price
Permal Investment Mgmt Svcs Ltd Regulated
Emerging Asia Bond Fund Inst Acc $ 9.38 - -0.05 0.00 for shares of an OEIC and units of a single priced unit
Northwest Investment Management (HK) Ltd www.permal.com Prusik Asian Equity Income B Dist $ 143.83 - -0.50 4.40 Veritas Global Focus Fund B USD $ 16.15 - -0.29 0.00 trust are the same.
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Other International Funds
Emerging Local Bond - Inst Acc $ 10.45 - -0.08 0.00 Veritas Global Focus Fund B GBP £ 20.13 - -0.36 0.00
Other International Funds Offshore Fund Class A US $ Shares Prusik Asia A $ 174.54 - -0.45 0.00 Treatment of manager’s periodic capital charge:
Emerging Markets Bond - Inst Acc $ 36.41 - -0.21 0.00 The letter C denotes that the trust deducts all or part
Northwest $ class $ 2329.36 - -28.58 0.00 Investment Holdings N.V. $ 5417.00 - -70.68 0.00 Prusik Asian Smaller Cos A $ 128.14 - -0.04 0.00 Veritas Global Focus Fund B EUR € 14.45 - -0.38 0.00 of the manager’s/operator’s periodic charge from
capital, contact the manager/operator for full details
Northwest Warrant $ class $ 1969.35 - -444.40 0.00 Macro Holdings Ltd $ 4176.78 - -15.24 0.00 Emerging Markets Corp.Bd Fund Inst Acc F $ 12.27 - -0.03 0.00 Veritas Global Equity Income Fund B GBP £ 122.23 - -2.58 4.30 of the effect of this course of action.

Fixed Income Holdings N.V. $ 349.32 - -14.81 - Emerging Markets Short-Term Local Currency Fund $ 11.36 - -0.07 0.00 Purisima Investment Fds (CI) Ltd (JER) Stenham Asset Management Inc Veritas Global Equity Income Fund B EUR € 158.53 - -4.69 4.45 Exit Charges: The letter E denotes that an exit charge
Regulated www.stenhamassetmanagement.com
may be made when you sell units, contact the
Permal Absolute Return Fund $ 163.19 - -0.40 0.00 Euro Bond - Inst Acc € 22.65 - -0.06 0.00 Other International Funds
Toscafund Asset Management LLP (UK)
Veritas Global Equity Income Fund B USD $ 98.20 - -2.06 4.53
PCG B 147.26 - -3.47 0.00 manager/operator for full details.
www.toscafund.com
Euro Credit - Inst Acc € 14.69 - -0.01 0.00 Stenham Asia USD $ 128.00 - -1.80 - Authorised Funds Veritas Global Real Return Fund B USD $ 19.54 - -0.23 0.00
PCG C 145.17 - -3.42 0.00 Time: Some funds give information about the timing of
Aptus Global Financials B Acc £ 2.56 - -0.12 4.85 price quotes. The time shown alongside the fund
Euro Income Bond - Inst Acc F € 12.60 - -0.07 0.00 Stenham Credit Opportunities A Class USD $ 99.47 - -1.45 0.00 Veritas Global Real Return Fund B GBP £ 11.08 - -0.13 0.00 manager’s/operator’s name is the valuation point for
Aptus Global Financials B Inc £ 2.24 - -0.10 5.01 their unit trusts/OEICs, unless another time is
Euro Long Average Duration - Inst Acc € 22.91 - 0.28 0.00 Stenham Equity UCITS USD $ 127.68 - -0.16 0.00 Veritas Global Real Return Fund B EUR € 12.70 - -0.15 0.00
Putnam Investments (Ireland) Ltd (IRL) indicated by the symbol alongside the individual unit
Oasis Crescent Management Company Ltd Regulated trust/OEIC name.
Euro Low Duration Fund Inst Acc € 11.22 - -0.01 0.00 Stenham Growth USD $ 214.36 - -1.09 -
Other International Funds Putnam New Flag Euro High Yield Plc - E € 962.50 - -7.01 4.13 Toscafund Asset Management LLP The symbols are as follows: ✠ 0001 to 1100 hours; ♦
Euro Real Return - Inst Acc € 13.35 - -0.05 0.00 Stenham Healthcare USD $ 184.07 - 0.80 0.00 Veritas Asset Management LLP 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Oasis Crescent Equity Fund R 9.34 - -0.03 0.00 www.toscafund.com
www.veritas-asset.com midnight. Daily dealing prices are set on the basis of
Pictet Asset Management (Europe) SA (LUX) Euro Short-Term Inst Acc € 12.23 - 0.00 0.00 Stenham Managed Fund USD $ 113.54 - -0.62 - Other International Funds
Other International Funds the valuation point, a short period of time may elapse
15, Avenue J.F. Kennedy L-1855 Luxembourg
Tosca A USD $ 305.04 - -1.61 - before prices become available. Historic pricing: The
Oasis Global Mgmt Co (Ireland) Ltd (IRL) Tel: 0041 58 323 3000 Euro Ultra Long Duration - Inst Acc € 31.19 - 0.62 0.00 Stenham Macro UCITS USD $ 100.50 - 0.39 0.00 Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00 letter H denotes that the managers/operators will
Regulated FCA Recognised Tosca Mid Cap GBP £ 245.63 - -7.49 0.00 normally deal on the price set at the most recent
Global Advantage - Inst Acc $ 11.93 - -0.04 0.00 Stenham Multi Strategy USD $ 115.54 - -0.74 - Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00 valuation. The prices shown are the latest available
Oasis Global Investment (Ireland) Plc Pictet-Absl Rtn Fix Inc-HI EUR € 105.23 - -0.38 0.00
Tosca Opportunity B USD $ 334.27 - -12.71 0.00 before publication and may not be the current dealing
Global Advantage Real Return Fund Inst Acc $ 8.24 - -0.06 0.00 Stenham Quadrant USD A $ 398.60 - -2.93 - Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00 levels because of an intervening portfolio revaluation
Oasis Crescent Global Short Term Income Fund $ 0.98 - 0.00 0.91 Pictet-Absl Rtn Glo Div-I EUR F € 122.00 - -0.20 0.00
Pegasus Fund Ltd A-1 GBP £ 56.13 - 0.87 0.00 or a switch to a forward pricing basis. The
Global Bond - Inst Acc $ 27.92 - -0.02 0.00 Stenham Trading Inc USD $ 115.43 - -0.76 - managers/operators must deal at a forward price on
Oasis Global Equity $ 25.00 - -0.35 0.24 Pictet-Agriculture-I EUR F € 167.82 - -3.51 0.00 Robeco Asset Management (LUX)
request, and may move to forward pricing at any time.
Oasis Crescent Global Investment Fund (Ireland) plc Global Bond Ex-US - Inst Acc $ 19.66 - -0.02 0.00 Coolsingel 120, 3011 AG Rotterdam, The Netherlands. Stenham Universal USD $ 430.13 - -1.32 - Waverton Investment Funds Plc (1600)F (IRL)
Forward pricing: The letter F denotes that that
Pictet-Asian Equities Ex Japan-I USD F $ 184.83 - 1.00 0.00 www.robeco.com/contact waverton.investments@citi.com managers/operators deal at the price to be set at the
Oasis Crescent Global Equity Fund $ 25.54 - -0.32 0.00 Global High Yield Bond - Inst Acc $ 19.01 - -0.22 0.00 FCA Recognised Stenham Universal II USD $ 159.28 - -0.56 0.00 FCA Recognised next valuation.
Pictet-Asian Local Currency Debt-I USD F $ 152.20 - 0.30 0.00
Oasis Crescent Variable Balanced Fund £ 10.03 - -0.11 0.98 Global Investment Grade Credit - Inst Income $ 11.98 - -0.01 3.82 Asia-Pacific Equities (EUR) € 117.24 - -1.37 0.00 Waverton Asia Pacific A USD $ 15.31 - -0.13 5.83
Investors can be given no definite price in advance of
Pictet-Biotech-I USD F $ 604.87 - -24.49 0.00
the purchase or sale being carried out. The prices
OasisCresGl Income Class A $ 10.70 - 0.01 2.45 Global Investment Grade Credit Fund Inst Acc € € 11.47 - -0.02 0.00 Chinese Equities (EUR) € 62.01 - 0.10 0.00 Stratton Street Capital (CI) Limited (GSY) Waverton Global Bond Fund Cls A $ 8.36 - -0.03 5.56
appearing in the newspaper are the most recent
Pictet-Brazil Index I USD $ 32.47 - -0.60 0.00 Regulated provided by the managers/operators. Scheme
OasisCresGl LowBal D ($) Dist $ 11.07 - -0.10 0.00 Global Investment Grade Credit Fund Inst Acc $ $ 16.55 - -0.01 0.00 Em Stars Equities (EUR) € 151.37 - 0.90 0.00 Waverton Global Equity Fund A GBP £ 12.71 - -0.22 0.61
Japan Synthetic Warrant Yen Class ¥ 1455.79 - 93.20 0.00 particulars, prospectus, key features and reports: The
Pictet-CHF Bonds I CHF SFr 509.13 - 1.36 0.00
most recent particulars and documents may be
OasisCresGl Med Eq Bal A ($) Dist $ 11.16 - -0.12 0.51 Global Multi-Asset - Inst Acc $ 13.22 - -0.15 0.00 Emerging Markets Equities (EUR) € 125.94 - 0.62 0.00 Waverton UK Fund A GBP £ 11.71 - -0.22 1.98
Japan Synthetic Warrant GBP Hedged Class £ 197.20 - -2.68 0.00 obtained free of charge from fund
Pictet-China Index I USD $ 88.91 - -0.01 0.00 managers/operators. * Indicates funds which do not
Oasis Crescent Gbl Property Eqty $ 8.73 - -0.27 2.38 Global Real Return - Inst Acc $ 18.08 - 0.05 0.00 Flex-o-Rente (EUR) € 112.11 - 0.72 0.00 Waverton Equity Fund A GBP £ 13.37 - -0.18 0.20
Japan Synthetic Warrant USD Class $ 15.64 - 0.56 0.00 price on Fridays.
Pictet-Clean Energy-I USD F $ 66.79 - -2.61 0.00
Glob.Consumer Trends Equities (EUR) € 132.85 - -3.92 0.00
TreeTop Asset Management S.A. (LUX)
Income Fund Inst Acc $ 12.17 - -0.05 0.00 Waverton Sterling Bond Fund A GBP £ 9.17 - -0.02 5.43 Charges for this advertising service are based on the
Japan Synthetic Warrant USD Hedged Class $ 196.54 - -2.43 0.00 Regulated
Pictet-Digital Communication-I USD F $ 225.23 - -5.00 0.00 number of lines published and the classification of the
High Yield Bonds (EUR) € 117.65 - -1.49 0.00 TreeTop Convertible Sicav
Inflation Strategy Fund Inst Acc $ 8.34 - -0.08 0.00 fund. Please contact data@ft.com or
Pictet-Eastern Europe-I EUR F € 230.88 - -9.14 0.00 Renminbi Bond Fund AUD Cls A A$ 115.43 - 2.08 3.59
International A € 256.76 - -6.73 0.00 WA Fixed Income Fund Plc (IRL) call +44 (0)20 7873 3132 for further information.
Low Average Duration - Inst Acc $ 14.74 - -0.02 0.00 Lux -O- Rente (EUR) € 147.56 - 1.32 0.00
Pictet-Em Lcl Ccy Dbt-I USD F $ 151.73 - -1.10 0.00 Renminbi Bond Fund AUD Cls B A$ 117.33 - 2.11 3.35 Regulated
International B $ 330.42 - -8.51 0.00
PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 7.28 - -0.10 0.00 New World Financials (EUR) € 42.71 - -1.77 0.00
Renminbi Bond Fund CHF Cls A SFr 111.68 - 1.94 3.68 European Multi-Sector € 116.15 - -0.22 0.00
Pictet-Emerging Markets-I USD F $ 424.78 - 4.35 0.00
International C £ 111.79 - -2.82 0.00
PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 9.50 - -0.19 0.00 US Premium Equities (EUR) € 158.37 - -3.07 0.00
Pictet-Emerging Markets Index-I USD F $ 187.59 - -1.84 0.00 Renminbi Bond Fund CHF Cls B SFr 111.66 - 1.94 3.41
Odey Asset Management LLP (CYM)
US Premium Equities (USD) $ 177.13 - -3.42 0.00
International D € 238.42 - -6.24 3.38
Regulated PIMCO RAE Fundam.PLUS US Inst Acc $ 10.89 - -0.21 0.00
Pictet-Emerging Corporate Bonds I USD $ 104.99 - -0.02 0.00 Renminbi Bond Fund CNH Cls A CNH 123.26 - 0.92 3.47
TreeTop Global Sicav
OEI Mac Inc GBP A £ 388.32 - -21.66 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.24 - -0.05 0.00
Pictet-Emerging Markets High Dividend I USD $ 85.07 - 1.14 0.00 Renminbi Bond Fund CNH Cls B CNH 123.19 - 0.93 3.22 Global Opp.A € 121.76 - -4.17 0.00
OEI Mac Inc GBP B £ 226.97 - -9.20 0.00 StocksPLUS{TM} - Inst Acc $ 20.85 - -0.29 0.00
Pictet-Emerging Markets Sust Eq I USD $ 76.17 - -0.57 0.00 Renminbi Bond Fund Euro Cls B € 113.55 - 1.98 3.33 Global Opp.B $ 121.08 - -4.07 0.00
OEI MAC Inc USD $ 2072.43 - -115.75 0.00 Total Return Bond - Inst Acc $ 27.24 - 0.02 0.00
Pictet-Environmental Megatrend Sel I EUR € 141.42 - -3.94 0.00 Renminbi Bond Fund GBP Cls B £ 115.58 - 2.07 3.40 Global Opp.C £ 161.27 - -4.23 0.00
Odey European Inc EUR € 897.10 - -46.56 0.00 UK Corporate Bond - Inst Acc £ 17.17 - 0.07 0.00
Yuki International Limited (IRL)
Pictet-EUR Bonds-I F € 559.23 - -0.73 0.00 Renminbi Bond Fund SGD Cls B S$ 115.19 - 2.04 3.32 Sequoia Equity A € 115.97 - -4.61 0.00 Tel +44-20-7269-0207 www.yukifunds.com
Odey European Inc GBP A £ 345.94 - -18.01 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 19.11 - 0.16 0.00 Regulated
Pictet-EUR Corporate Bonds Ex Fin i EUR € 143.58 - 0.26 0.00 Renminbi Bond Fund USD Cls B $ 115.36 - 2.07 3.17 Sequoia Equity B $ 118.66 - -4.91 0.00
S W Mitchell Capital LLP (CYM) Yuki Mizuho Umbrella Fund
Odey European Inc GBP B £ 196.35 - -10.20 0.00 UK Low Duration - Inst Acc £ 13.95 - -0.02 0.00 Regulated
Pictet-EUR Corporate Bonds-I F € 199.34 - 0.01 0.00 Renminbi Bond Fund YEN Cls B ¥ 13083.33 - 228.53 0.00 Sequoia Equity C £ 141.50 - -4.75 0.00 Yuki Mizuho Japan Dynamic Growth ¥ 6076.00 - 57.00 0.00
Odey European Inc USD $ 414.84 - -21.55 0.00 UK Real Return - Inst Acc £ 22.94 - -0.04 0.00 S W Mitchell European Fund Class A EUR € 328.95 - -9.46 -
Pictet-EUR Government Bonds I EUR € 160.44 - -0.03 0.00 Renminbi Bond Fund USD Cls A $ 158.80 - 2.85 3.44 Yuki Mizuho Japan Large Cap ¥ 777.62 - -0.38 0.00
Giano Capital EUR Inc € 4520.92 - -131.24 0.00 UK Sterling Long Average Duration - Inst Acc £ 22.86 - 0.54 0.00 S W Mitchell Small Cap European Fund Class A EUR € 231.38 - 0.21 -
Pictet-EUR High Yield-I F € 233.17 - -1.29 0.00 Renminbi Bond Fund GBP Cls A £ 153.80 - 2.76 3.67 Unicapital Investments (LUX) Yuki Japan Low Price ¥ 23554.00 - 420.00 0.00
The Charlemagne Fund EUR € 315.89 - -12.01 - Regulated
Unconstrained Bond - Inst Acc $ 11.56 - -0.07 0.00
Pictet-EUR Short Mid-Term Bonds-I F € 137.02 - -0.04 0.00 Renminbi Bond Fund SGD Cls A S$ 152.33 - 2.71 3.59 Yuki Japan Value Select ¥ 11456.00 - 122.00 0.00
Investments III € 5.03 - -22.38 -
Odey Asset Management LLP (IRL) US High Yield Bond Fund Inst Acc $ 26.04 - -0.34 0.00
FCA Recognised Pictet-EUR Short Term HY I EUR € 118.15 - -0.43 0.00 Renminbi Bond Fund YEN Cls A ¥ 19370.00 - 338.00 0.00 YMR Umbrella Fund
Investments IV - European Private Eq. € 247.75 260.13 -44.58 -
S W Mitchell Capital LLP (IRL)
Odey Pan European EUR R € 294.75 - -9.91 0.00 Renminbi Bond Fund EUR Cls A € 104.26 - 1.82 3.60 YMR N Growth ¥ 16481.00 - -1.00 0.00
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.91 - -0.01 0.00 Regulated
Investments IV - Global Private Eq. € 366.42 384.74 -49.81 -
SWMC European Fund B EUR € 12585.25 - -699.20 0.00 Yuki Asia Umbrella Fund
Odey Absolute Return Focus Fund $ 100.00 - - -
Pictet-Euroland Index IS EUR € 113.17 - -4.06 0.00
Yuki Japan Rebounding Growth Fund JPY Class ¥ 21348.00 - 242.00 0.00
Odey Allegra European EUR O € 237.67 - -7.69 0.00 SWMC UK Fund B £ 10293.93 - -339.39 0.00
Pictet-Europe Index-I EUR F € 146.51 - -5.22 0.00
22 ★ FINANCIAL TIMES Wednesday 10 February 2016

MARKETS & INVESTING

Commodities
FT explainer

Cocos stir fear among

investors in European banks
Shares and debt of
eurozone banks are being
hammered as investors
question the sector’s
ability to make coupon
payments on contingent
convertible bonds,
popularly known as
“cocos”.
What are cocos?
At a simple level a
company has owners, and
it borrows money from
lenders, who expect to get
their money back. If the
business runs into trouble,
the owners lose their stake
and the debt becomes
equity — lenders turn into
owners — in what can be a
drawn-out process of
restructuring.
Because a bank in
trouble would not have
time for such negotiation,
coco bonds are designed
to anticipate that process
and transform
automatically from debt to
equity when certain
conditions are met. Their
full name is tier one
contingent convertible
bonds, and they have their
roots in the financial crisis,
when governments were
forced to bail out banks.
Devised to help rebuild
the capital that regulators
require banks to hold in
case of losses, cocos pay a
fixed coupon, but convert
to equity or can be written
off when losses force a
bank’s capital below a
certain threshold.
They also allow the
issuer to miss coupon
payments, and this
prospect no longer seems
remote, setting off the
latest bout of market
anxiety.
Cocos are the riskiest
debt issued by banks, so
retail investors are not
supposed to buy them.
Today the eurozone
coco market is worth
€95bn. In June, when it was
smaller, only a quarter was
judged investment-grade
by Fitch.
They pay a high coupon
— frequently 6-7 per cent,
compared with below 1 per
cent for senior bank debt
— to compensate for the
risk of loss-absorption, and
the risk that payments will
be halted.
Why the worry?
Concerns have swirled
around European banks,
including Deutsche Bank,
Santander and UniCredit,
amid questions about the
way these bonds will be
treated in the future.
While cocos are best
known for the risk of
Contingent convertible bond prices
100 = par
Banco Santander coco bond
Deutsche Bank coco bond
2014
Source: Bloomberg
capital losses, the
immediate question for
some banks is whether
they will miss coupon
payments.
Deutsche Bank’s €1.75bn
coco is trading below 75
cents on the euro, its
lowest level, a 19 per cent
fall in price this year.
A second question is
whether buyers of coco
bonds ever get their initial
investment back. The
bonds are perpetual,
meaning they will not
mature unless the bank
exercises an option,
typically after five years.
Investors had expected
banks to almost always
take up the option to
redeem cocos, but
regulators may not allow
this if the bank would then
have to issue new bonds at
much higher costs.
A perpetual bond with a
7 per cent coupon is worth
much less than a
comparable five-year bond.
With the cocos of
Santander and UniCredit
touching new lows at 85
and 76.3 cents on the euro
respectively on Monday,
investors are not taking
any chances. They are
selling bank debt and
shares, and buying credit
default protection on
institutions seen as being
at the fore of coco risk.
So far no bank has
defaulted on a coco bond,
and losses are limited to
secondary markets.
Why did they become
popular?
Governments have
encouraged the sale of
coco securities because
they want to strengthen
banks. Lenders to banks
are supposed to take, and
assess, the risks instead of
depositors and taxpayers.
Bank capital contributes
to the strength of an
institution’s balance sheet.
When it falls these bonds
help to shore it up by
converting to equity or
being written off.
Most of them count as
additional tier one capital
and AT1 is the most
popular variety of coco.
They are a way for banks
to raise their capital ratio
without selling new shares.
The question is whether
they are a signal or a cause
of problems for a bank. A
rush to sell and so avoid
potential losses could
undermine broader
confidence in an
institution.
Thomas Hale and
Dan McCrum
See Lex
110
100
90
80
70
15 16
Oil industry leaders warn of ‘false dawn’
Traders remain bearish
even as hedge funds bet
that prices will recover
NEIL HUME AND DAVID SHEPPARD
Some of the most powerful voices in the
oil industry have moved to quash talk of
stronger prices this year, warning that
turmoil in emerging markets will delay
any significant recovery until 2017.
As the industry gathers in London for
an annual conference, one of the biggest
oil traders and a leading forecaster have
cautioned against believing the worst
price rout in a generation is over.
The International Energy Agency, the
adviser to industrialised nations, said
the global surplus was bigger than previ-
ously estimated and the rebound in
prices was probably “a false dawn”.
Risk-parity strategy shows signs of strain
Approach that weathered
financial crisis at a turning
point after indices plummet
ROBIN WIGGLESWORTH
Last year was terrible for “risk parity”,
once one of the hottest strategies in the
investment world, as losses mounted
and some analysts blamed it for exacer-
bating market turbulence. So far 2016
has offered little respite.
At its core risk parity is about balance.
Rather than spread investments using
old-fashioned rules of thumb — such
as 60 per cent in equities and 40 per
cent in bonds — risk-parity funds invest
in asset classes according to their vola-
tility, so that each component contrib-
utes equally.
The strategy is the brainchild of Ray
Dalio’s Bridgewater, the world’s biggest
hedge fund manager, and its superb
long-term record — even weathering the
global financial crisis with aplomb — has
led to an explosion of risk-parity funds
in recent years. It is estimated to be a
$400bn to $600bn industry.
But the performance of these strate-
gies sagged in 2014, and nosedived last
year, ruining risk parity’s reputation for
resilience in almost any market condi-
tion. The Salient Risk Parity index fell
12 per cent in 2015 and JPMorgan’s
gauge was off more than 8 per cent.
“Last year was one of the most diffi-
cult in my career,” says Jeffrey Knight,
head of asset allocation at Columbia
Threadneedle.
The $430m risk-parity fund he man-
ages lost 4.64 per cent last year. “No
question, it has been an unusually diffi-
cult period for risk parity. That’s a
reflection of the fact that it has been
an unusually challenging period for
markets.”
Even pioneers of the strategy have
suffered a bad time. Bridgewater’s “All
Weather” risk-parity fund lost 7.7 per
cent last year and is down about 10 per
cent net of fees since July 2014, accord-
ing to a person familiar with the matter.
Risk-parity funds were beaten up for
most of January, and have clawed their
way back to an average loss of 0.7 per
cent so far this year, according to the
Salient index.
Columbia Threadneedle’s fund has
lost 2.2 per cent, AQR’s has dipped
0.3 per cent and Putnam’s risk-parity
fund has fallen almost 4 per cent.
Michael Mendelson, a principal at
AQR, says he has analysed the poor per-
formance “every conceivable way” and
Vitol, the largest independent trader, low prices on consumption waned. ‘I don’t think to move more oil on to tankers at sea.
said the demand “bump” from cheaper The IEA has questioned the assump- Investors remain split over the out-
petrol would fade and stocks would pile tion that the market will tighten in the we can rely look. Most physical oil traders remain
up as consumption in China and com- second half. “With the market already on low prices bearish on prices. Many have had strong
modity-dependent economies slowed. awash in oil, it is very hard to see how oil driving much results from increased dealmaking
“I don’t think we can rely on low prices can rise significantly in the short opportunities. But exchange data show
prices driving much incremental term,” it said in its monthly report. incremental that hedge funds and other financial
demand,” Christopher Bake, a member Oil prices have fallen more than demand’ investors have built up a record bet on a
of the Vitol executive board, told the 70 per cent since the middle of 2014, price recovery in Brent. “The tension in
Financial Times at International Petro- and hit a 12-year low of $27 a barrel last Christopher positioning is palpable,” said a senior oil
leum Week. “All of the commodity-pro- month before rallying to $35. Brent, the Bake, Vitol trader at a large bank.
ducing economies are under stress.” global marker, was at $32 yesterday. Delegates from the big Gulf Opec
The views of the IEA and Vitol pitch Vitol said the build-up in commercial countries have largely dismissed the
them against some of the largest oil pro- inventories of crude and refined fuels efforts of fellow member Venezuela to
ducers. BP and Royal Dutch Shell have could accelerate, rising by up to 360m drum up support for production cuts.
told shareholders they expect prices to barrels in six months, as supply out- They say they remain hopeful that out-
recover this year. strips demand by 1.8m-2m barrels a day. put outside the group is waning.
Vitol, which ships enough oil every Over the past two years inventories Dieter Helm, an Oxford professor,
day to supply the UK, France and Italy, had risen by 450m barrels, Vitol esti- told the conference producers should
said global demand growth would fall to mated, excluding strategic stockpiling prepare for the possibility that prices
about half the rate of last year, or less by the Chinese government. never recover to the $100 level they
than 1m barrels a day, as the effect of Mr Bake said traders would soon have averaged earlier this decade.
Analysis. Equities
A terrible year of
performance for the ‘risk
parity’ fund strategy
Average performance of risk parity
funds tracked by JPMorgan
110
105
100
95
90
2012 13 14 15 16
The ‘risk parity’ strategy
underperforms both US
stocks and bonds
Rebased
Salient Risk Parity Index
Barclays Aggregate bond index
S&P 500 120
110
100
90
2014 15 16
Source: Bloomberg
Dollar returns in attributes it to one overriding factor. down reserves to buttress currencies, says. “I don’t consider myself a purist,
global risk- “The train wreck in commodities . . . fixed income has failed to rally as hard and there are some regimes that aren’t
parity funds has led to an atypically bad perform- as the fall in stocks and commodity that risk parity friendly.”
have been hit by ance for risk parity,” he says. prices might normally imply. The crucial question is whether this
sharp rises in While commodities are one, often “Rates have historically done well in bout of underperformance is a tempo-
the US currency, minor, component in a typical risk-par- environments like this, but last year we rary blip, the start of a risk parity-un-
prompting some ity fund, “the moves have been so sharp got nothing out of it,” says Mr Knight. friendly market regime, or sympto-
funds to tinker that they’ve had a big, negative impact”. Another factor has contributed to the matic of something more broadly awry
with their Adding to investment managers’ limp performance, he says: currencies. in the assumptions underpinning the
fundamentals woes, bonds — a big part of risk-parity Most risk-parity funds invest globally, strategy.
AP Photo/LM Otero
portfolios — have failed to act as a coun- but the dollar climbed sharply against Industry insiders are confident that it
terweight for a strategy that once most of its counterparts last year, weigh- is the first scenario and a turnround
seemed bulletproof. ing on returns in dollars. beckons. Bridgewater’s “All Weather”
To ensure that fixed income contrib- As a result Columbia Threadneedle fund is still “a much better ‘sleep at a
utes equally to the mathematical riski- has begun to hedge some of its foreign night’ portfolio than any single asset
ness of more volatile asset classes such exchange exposure to stop its risk-par- class and most portfolios”, says an exec-
as equities, most managers use leverage ity portfolio from being overly affected utive at the hedge fund.
to juice up the bond portion of a portfo- by currency swings. But Mr Knight Mr Mendelson says that apart from
lio. The theory is that when equities do admits that this is unusual in an indus- some minor implementation tweaks
poorly, the leveraged bond portfolio try where adherence to fundamental he has not changed anything as a result
should act as ballast for the fund. principles is fairly strict. of market movements. “Systematic
While a bond rally in late January “This is a world where there are some investing does best when you run a
helped many risk-parity funds regain purists, and the theory underpinning consistent process that doesn’t change
their footing to an extent, with many risk parity is strong, so there aren’t that in response to short-term fluctuations,”
emerging market central banks drawing many that change their approach,” he he asserts.

Currencies Capital markets

Dollar under pressure before Yellen’s outlook CDS prices soar amid fear over bank bonds
ROCHELLE TOPLENSKY
AND ROGER BLITZ
A jittery currency market is braced for
further volatility today when Janet
Yellen, the Federal Reserve chair, deliv-
ers her semi-annual testimony on the
outlook for the economy and policy
before Congress.
The dollar has come under growing
pressure against its main peers, led by
the yen, euro and swiss franc, as the
bond market has priced out the pros-
pect of further increases in overnight
borrowing costs set by the central bank.
The prospect of Fed rate hikes has
receded against a backdrop of mixed US
economic data, a gloomy global eco-
nomic outlook, recent stock market tur-
moil and concerns about credit losses
from the indebted energy sector.
Ms Yellen’s carefully chosen words,
however, could keep the hope of rate
increases alive, intensifying swings in
currencies, given expectations of fur-
ther policy easing by the Bank of Japan
and the European Central Bank in the
coming months.
Most observers consider the Fed rates
policy hamstrung by market instability,
so the likelihood is that the chair’s testi-
mony will only serve to drive the yen
higher against the dollar.
Neil Mellor, FX strategist at BNY Mel-
lon, said even this early into the year,
market turmoil and its likely impact
on the Fed’s rates normalisation strat-
egy meant the two-day testimony had
“all the potential for a seminal moment
in 2016’’.
The yen climbed to a 15-month high
against the dollar of Y114.25 yesterday
while the euro has risen 4 per cent
against the US currency this year above
$1.13. The stronger yen puts Haruhiko
Kuroda, BoJ governor, under pressure to
act, but a verbal commitment is unlik-
ely to move markets much.
Lee Hardman at Bank of Tokyo-
Mitsubishi said negative interest rates
had created the unfavourable outcome
of lifting short-term yen volatility. “The
unwanted strengthening of the yen and
renewed weakness in the Japanese
equity market is increasing downside
risks to the BoJ’s economic outlook,” he
said. “As a result it is also increasing the
likelihood that the BoJ will soon ease
monetary policy further again.”
Marc Chandler at Brown Brothers
Harriman said the yen was being used
as a funding currency for carry trades
such as buying equities. Speculators
were buying in anticipation of investors
having to purchase back the currency,
he added.
JOE RENNISON — NEW YORK
GAVIN JACKSON — LONDON
Investors have rushed to buy protec-
tion against banks’ declining bond
prices, amplifying concerns over the
health of financial companies.
A popular credit derivatives index that
tracks the likelihood of default of invest-
ment-grade debt of European compa-
nies and banks was trading at 118 basis
points yesterday, near its highest level
since June 2013.
The value of the contract should
increase as the value of the debt it refer-
ences falls, protecting investors.
Surging credit default swap prices
reflect growing investor anxiety about
the health of Europe’s banks and highly
indebted companies.
US banks have also been hit hard,
with the S&P financials sector the worst-
performing area of the broad market.
Global exchange traded funds that track
the financial sector have recorded out-
flows of $3.2bn so far this quarter. That
puts them on track for the worst quar-
terly outflow in six years, according to
data from Markit, the research group.
Poor results from Deutsche Bank and
Credit Suisse have fuelled concerns over
the health of the European banks, send-
ing their shares and bonds lower.
Deutsche Bank shares were 4 per cent
lower yesterday morning, having fallen
9.5 per cent on Monday. The bank’s sen-
ior CDS had risen to 238bp yesterday
morning, wider than at any point during
the 2008 financial crisis.
Worries over bank debt were exacer-
bated by losses unexpectedly imposed
on some senior creditors at Portugal’s
Novo Banco in December.
The slide in Deutsche Bank’s riskiest
bonds led Marcus Schenck, chief finan-
cial officer, to try to calm investors’
nerves by saying the bank would pay its
coupons.
Volume of trades in the overall Euro-
pean CDS market reached the highest
level in three years on Monday, with the
exception of the US Treasury yield spike
in October 2014, according to data from
Isda, a trade association.
“The CDS market is pointing to a shift
in market risks: from predominantly
idiosyncratic to more systemic risks,”
said Ioannis Angelakis, a credit deriva-
tives strategist at Bank of America Mer-
rill Lynch.
Investors bought more than $6bn in
protection using a Markit iTraxx CDS
index that tracks European financial
companies on Monday. Yesterday
morning a further $5bn was bought.
Additional reporting by Joel Lewin
Wednesday 10 February 2016 ★ FINANCIAL TIMES 23

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Jamie
Chisholm
Banks are bruised as US equities S&P 500 index
Change on day 0.32%

slip further into stressed territory

Tina has gone awol. We have noted
before how some equity investors have
cited Tina (“There Is No Alternative”)
as a reason the stock market bull run
will continue.
Try telling that to Mrs Watanabe.
The fabled Japanese investor clearly
thinks there is an alternative to shares.
Yesterday’s plunge in the Nikkei
225’s of more than 5 per cent came
even as 10-year Japanese government
bond yields — a competitor for
traders’ cash — fell into negative
territory for the first time.
The move in JGBs took the volume
of government bonds worldwide
trading below zero per cent to $6tn.
It seems that Tina has lost her heft
because investors are increasingly
worried that these lower implied
interest rates are evidence of badly
waning global growth and will
exacerbate fragility in the financial
system.
It was Japanese banks that led the
Nikkei lower.
But a surging yen also delivered its
traditional battering to the exporter-
sensitive Tokyo market.
And here equity bears may need to
be careful — at least in the short term.
Some traders have started
muttering that as the yen flirts with
the Y115 level versus the dollar,
the chances of an intervention,
probably verbal, by the Bank of Japan
increase.
The BoJ is likely to be most put out
that the currency is stronger than it
was at the time when the central bank
surprised the market with a negative
deposit rate.
jamie.chisholm@ft.com
Yen
Against the dollar (¥ per $)
115
120
125
Nov 2015 2016 Feb
Source: Thomson Reuters Datastream
Vix ‘fear gauge’ rises 4.6%
amid US economy fears
after Nikkei 225 has worst
day in nearly 3 years and
havens fail to benefit
DAVE SHELLOCK
US stocks struggled to regain their com-
posure after the previous session’s sharp
sell-off as trading turned volatile amid
persistent concerns over global growth,
the health of the banking sector and the
outlook for Federal Reserve policy.
Wall Street’s choppy performance fol-
lowed another weak session for Euro-
pean stocks and the biggest one-day
drop for the Nikkei 225 in Tokyo in
almost three years.
However, the poor sentiment towards
equities failed to trigger gains for “core”
US and German government bond
prices, while gold stayed considerably
short of Monday’s high above $1,200
an ounce.
By midday in New York the S&P 500
equity index was down 0.3 per cent at
1,848, having dropped more than 1 per
cent in early trade.
The CBOE Vix volatility index, the so-
called equity “fear gauge”, was 4.6 per
cent higher at 27.20, some way above the
20 level that is associated with height-
ened stress in the stock market.
Across the Atlantic the Euro Stoxx
600 index extended Monday’s 3.5 per
cent slide with a further 1.6 per cent
decline, leaving it at its lowest level since
October 2014, as banking stocks suf-
fered another bruising sell-off.
Japanese equities also caught the eye
as the Nikkei 225 tumbled 5.4 per cent
to its lowest level since January 21. It
was the indicator’s worst showing since
mid-2013.
Energy stocks in New York and
Europe came under fresh pressure as oil
prices continued to retreat. Brent crude
Banks’ bear market: FT.com/video
The FT’s John Authers analyses how shares of lenders in the
US and western Europe have fallen amid investor pessimism
was down 3.7 per cent at $31.67 a barrel
while US West Texas Intermediate was
2.3 per cent lower at $29.01.
Base metals suffered broad losses,
with copper hitting a two-week low of
$4,467 a tonne before pulling back
to $4,508 — still down 2.2 per cent on
the day.
In spite of the intense focus on sliding
oil prices this year, John Higgins at Capi-
tal Economics highlighted that the
9.4 per cent slide for the S&P 500 so far
in 2016 could not be blamed entirely on
a collapse in the prices of shares in the
energy sector.
“The biggest losers this year have
instead been companies in the finan-
cials, consumer discretionary, health-
— Justin Sullivan/Getty Images
care and information technology sec-
tors,” he said. “This marks quite a
change from last year, when most non-
commodity sectors largely brushed off
declines of 24 per cent and 10 per cent in
the prices of shares in the energy and
material sectors respectively. The prices
of shares in only one non-commodity
sector — utilities — declined by more
than 5 per cent in 2015.
“The implication is that investors are
becoming more worried that the US
economy as a whole is heading for trou-
bled times.”
Indeed there has been much specula-
tion — partly fuelled by some weak eco-
nomic data releases — that the US is
heading for recession.
1950
1900
1850
1800
Jan 2016 Feb
The January non-farm payrolls US equities Energy stocks were the
report, released last week, clouded the biggest fallers on Wall Street as crude
picture in that it showed moderate job oil prices took another hit, while an
creation and a falling jobless rate along- early rally for the technology sector
side improving wage growth. went into reverse
“Financial markets continue to adjust
to the unfavourable scenario raised by FTSE 100 index
Friday’s strong jobs report,” said Hans Change on day 1.00%
Mikkelson, credit strategist at BofA- 6200
Merrill Lynch.
That scenario was “that the Fed may 6000
be closer to meeting its dual mandates, 5800
even as investors fear the US economy is 5600
slipping into recession, with the result- Jan 2016 Feb
ing rate hikes making a recession more
likely and/or worse”. UK equities Mining stocks suffered
Mr Mikkelson added: “Hence we are steep losses amid persistent worries
seeing the most recession-sensitive about the health of the global
asset classes and sectors underperform economy, helping to drag the FTSE
— including investment-grade credit 100 to its lowest for three years
underperforming stocks the past two
trading days.” Eurofirst 300 index
Unlike on Monday, however, the nerv- Change on day 1.60%
ous session for stock markets had little 1350
impact on US or German government
1300
bond prices.
The yield on the 10-year US Treasury 1250
— which moves inversely to its price — 1200
was up 1 basis point at 1.74 per cent, Jan 2016 Feb
while that on the German 10-year Bund
rose 1bp to 0.24 per cent. European equities Banking stocks
However, Japan’s 10-year government came under renewed pressure, with
bond yield fell to a record low of minus the sector sub-index sliding a further
0.01 per cent in the wake of the Bank of 4 per cent, as the Eurofirst 300 fell to
Japan’s decision to adopt negative inter- its lowest since September 2013
est rates to bolster inflation.
There were relatively muted perform- Nikkei 225 index
ances from other “haven” assets too. (’000) Change on day 5.40%
Gold was up $4 at $1,195 an ounce but 18.0
stayed well short of the $1,200 mark 17.5
that it briefly breached on Monday. 17.0
The dollar was down 0.9 per cent 16.5
against the yen at a 15-month low of 16.0
Y114.79 — although that was more a Jan 2016 Feb
function of dollar weakness than haven
flows into the Japanese currency as par- Japanese equities The Nikkei suffered
ticipants continued to weigh the likeli- its worst one-day fall since mid-2013,
hood of further Fed interest rate rises. as a steep sell-off in European and US
The euro was up 0.3 per cent versus banking stocks spread to Tokyo
the yen at Y130.01.

Salesforce.com Regeneron Pharmaceuticals fell Trading Directory

Wall Street
Salesforce.com jumps
after cloud sales to
larger groups impress
Adam Samson and
Mamta Badkar
Salesforce.com rallied yesterday after
an investment bank said the group was
gaining traction in enterprise cloud
services and its stock decline might
have run its course.
John DiFucci, an analyst at Jefferies,
said the stock was fairly valued after a
30 per cent fall this year as he upgraded
from “underperform” to “hold”.
The company, which derives much of
its revenue from fees from its online
customer relationship management
products, was a top performer last year,
soaring 32.2 per cent.
Mr DiFucci reckoned Salesforce’s
sales to large companies were
“improving”. Sales to smaller mid-
market companies had been “solid” and
were gaining momentum.
Salesforce is set to report quarterly
Share price ($) nearly 6 per cent to $368.23 after it
80 reported disappointing fourth-quarter
results and said sales of its eye
70 treatment would slow this year.
60 The biopharmaceutical company
50 reported profits of $155m, or $1.34 a
Jan 2016
Source: Thomson Reuters Datastream
Feb share, in the three months to December,
compared with $90.1m, or 78 cents, in
Day's
the period a year ago.
Indices Close change
Sales rose 37 per cent to $1.1bn,
missing analyst estimates of $1.2bn.
S & P 500
DJ Industrials
1845.13
15947.54
-8.31
-79.51
Adjusting for one-off items, earnings
of $2.83 a share were shy of
Nasdaq Comp 4264.46 -19.29
expectations of $3.37 a share.
Russell 2000 1204.70 -8.35
VIX 27.22 1.22
Regeneron said sales of Eylea, its
biggest drug, would advance 20 per cent
US 10 yr Treas Bd 1.75 0.01
next year compared with 54 per cent
US 2 yr Treas Bd 0.67 -
growth in 2015.
Gap, the retailer behind Old Navy,
Banana Republic and the Gap brand,
earnings this month. The stock jumped revealed a better full-year profit outlook
6.1 per cent to $57.60. than expected but reported declining
Sears Holdings, which owns Kmart, same-store sales across all brands.
fell 4.5 per cent to $15.98 after the “We believe the earnings will be of low
retailer warned that sales in the fourth quality,” said Betty Chen, an analyst at
quarter would be shy of Wall Street’s Mizuho.
forecasts. The shares were up as much as 3 per
It expected sales of $7.3bn in the cent but had slid nearly 1 per cent to
quarter because “the holiday season $23.78 by late morning.
proved challenging” and warm weather US stocks fluctuated following a sell-
and competition from other retailers off in Europe and Japan. The S&P 500
had weighed on performance. Analysts telecommunications sector was the
had been looking for $7.43bn. biggest decliner on the benchmark
Comparable sales, an important index, falling 2 per cent.
industry metric, were down 7.1 per cent. By midday, the S&P 500 and the Dow
Sears said it planned to accelerate the Jones Industrial Average were trading
closure of unprofitable stores, having 0.1 per cent lower at 1,852.31 and
recently announced that 50 were to go. 16,007.84 respectively and the
It was taking actions to lower its costs technology-heavy Nasdaq Composite
by $550m to $650m this year. was flat at 4,284.02.

to oil’s rally and a weaker dollar. valued at $20bn, is a potential target

London
Anglo plummets 11% as
FTSE 100 hits 3-year low
Bryce Elder
A mining rally ended abruptly
yesterday as demand jitters dragged the
FTSE 100 to a new three-year low.
Anglo American plummeted 11.2 per
cent to 333.8p, BHP Billiton fell 5.9 per
cent to 666.1p and Glencore was down
8.1 per cent to 94.4p.
Having hit its lowest since 2003 in
mid-January, FTSE’s large-cap mining
index has rebounded 27 per cent thanks
“Nothing has changed . . . other
than the share prices,” Goldman Sachs
told clients. “With no tangible data
from China supporting a recovery in
demand, and with supply continuing to
ramp up, we see the bounce as
unjustified.”
Goldman moved to “sell” on
Antofagasta, down 9.3 per cent to
410.9p, and First Quantum Minerals,
off 17.9 per cent to 170p, based on a more
bearish view of copper.
An “industry in structural decline”
needed to rebase dividends to match
cash flow, it warned. Anglo and First
Quantum were likely to need equity to
fix their balance sheets.
The wider market slipped for a third
straight day, leaving the FTSE 100 at i
ts lowest since late 2012. The index
closed 1 per cent lower, down 57.17
points to 5,632.19.
AstraZeneca edged 0.2 per cent
higher to £39.15 amid talk that it has
been weighing up a US acquisition to
expand its biotechnology portfolio.
Vertex Pharmaceuticals, the
developer of cystic fibrosis treatments
though any discussions are likely to
have been informal and very early stage,
according to industry rumours.
Vertex has fallen 35 per cent so far
this year after its Orkambi drug failed
to match pre-launch expectations
and the US Food and Drug
Administration rejected an application
to expand the use of its Kalydeco cystic
fibrosis medicine.
WPP was up 3.4 per cent to £13.84
after earnings from Omnicom, another
advertising agency, beat expectations.
Security software maker Sophos
dived 14.5 per cent to 176.2p, a record
low, even after it repeated 2016
guidance.
Analysts pinned the drop on slower
billings growth and a sell-off among its
US rivals.
Since Sophos floated in July at 225p a
share, its peer group had fallen an
average of 39 per cent, said Numis
Securities. The broker blamed the loss
of confidence on “global investor
concerns about relatively short product
cycles, and the need to stay on top of
technology and threat evolution”.
24 ★ Wednesday 10 February 2016

INSIGHT Analysis. Equities

Henny
Sender
Technology ‘unicorns’ shy away from IPOs
Volatility is keeping the hot Dwindling charge
PBoC timing matters new names away even as the
allure of private deals fades
Top 6 US-listed tech IPOs, 2015
Total value including non-deal
Number of US-listed
tech/internet IPO deals
for investors betting NICOLE BULLOCK
Oct 14
First Data
Jun 17
Fitbit Feb 11
slump to post-crisis levels
Deal value ($bn) Number

against the renminbi Going public used to be the dream of any

hard-charging technology entrepre-
$
$2.8bn $841.2m
Inovalon Holdings
$684.9m
50
40
400
300
neur. But the latest crop of hot compa- 30
200
nies out of Silicon Valley — Uber, Airbnb 20
100

T
he dilemma of the principal character in The and the like — have opted to loiter in the 10
Big Short, a film that revolves around a hedge shadows of private ownership. 0 0
fund manager who bets against the debt used In recent years the cachet has been 1995 2000 05 10 15
to finance the housing bubble, has struck a less with a splashy public listing and Average IPO returns
chord with his peers in Hong Kong. more with a private deal at a sky-high v the Nasdaq in 2015
The film, which is based on actual events leading up to valuation. Along with their smaller Per cent
the global financial crisis, resonates with hedge fund man- counterparts, these companies have
Average IPO return
agers as they decide how much further China’s currency raised billions of dollars of funding and 20
Dec 9 Mar 31 May 19
will decline in the coming months. are in no rush to raise money through an
Atlassian GoDaddy Black Knight Financial Services
Last week, on the sidelines of the Goldman Sachs Macro exchange listing.
conference, hedge fund clients and Goldman traders US-listed tech offerings have tapered $531.3m $520.0m $507.2m 10
swapped views on how quickly the renminbi could drop to off. Just 30 tech deals priced in 2015 —
8 to the dollar from about 6.57 today. Many private equity about half the previous year and the 0
executives who never before bothered to hedge the ren- smallest number since the crisis in Nasdaq return
minbi revenues of their Chinese corporate holdings are 2009, according to Dealogic. -10
beginning to do so, despite the high cost. Given the sharp slide in the value of Jan 2015 Dec
Almost all alternative managers are relentlessly bearish US equities since the start of January
FT graphic Sources : Dealogic; Renaissance Capital
about the prospects for China’s economy and stock mar- there will be no stampede of unicorns —
ket, and are even more pessimistic about the renminbi. private tech start-ups valued at more
However, they also acknowledge that investors can go than $1bn — in the near term. Some of ‘There is exchange-traded funds. “There is adviser on IPOs in the US tech sector. tain number of investors. Meanwhile,
bust even with the most brilliant fundamental analysis if last year’s tech IPOs have been punished demand too — just not at the valuations But going public has its cons. It is with the entry of new participants
they get the timing wrong. in the downturn, and that does not whet demand — that venture capital funds have given expensive, and companies must open alongside traditional VC funds, private
Much of the chatter at the Goldman conference revolved investors’ appetite for deals either. just not at the the start-ups.” their books to the public and deal with a markets became awash in cash.
around the intentions of the People’s Bank of China. “With the market volatility this year, valuations But VCs do not want their holding short-term focus on quarterly results. But there are signs that private mar-
Numerous investors expect that exporters will be forced to we haven’t seen an attractive window periods to stretch on for ever. Since the internet boom and bust kets are cooling. Well-publicised write-
bring offshore dollar revenues onshore relatively soon. to launch a tech IPO,” says Kristin that venture An IPO is still the ultimate destination there has been a move towards staying downs of private deals by mutual fund
Because China has a swelling trade surplus at the same DeClark, head of technology equity cap- capital funds for most start-ups, for reasons that go private longer, but bankers and market companies coincided late last year with
time that reserves are dropping, exporters are clearly ital markets at Deutsche Bank. have given beyond raising money and cashing out watchers see last year’s tumble in tech the listing of Square, the payments
hoarding their dollars outside. A host of tech companies are laying early investors. listings as an anomaly, rather than sig- start-up led by Jack Dorsey, at a valua-
Chinese banks are telling their the groundwork for public listings for the start-ups’ The pros of going public include the nalling a change in the logic behind IPOs tion below its last private deal.
corporate clients they can
Investing when markets stabilise. Bankers claim publicity associated with the listing. for tech start-ups. Companies were “The public markets haven’t become
expect to receive fewer dollars increasingly the backlog is as big as it has been for Employees are given a market for their opportunistic, they say, taking advan- more attractive, but the opportunity in
this year than last, even to some time. stock while management receives fund- tage of the money and terms in the pri- the private market is less attractive,”
repay those ever more expen-
comes down to Nutanix, a unicorn that provides ing for acquisitions, whose value resets vate market; public deals should return says Cully Davis, co-head of Americas
sive dollar borrowings. second-guessing cloud-related services, has filed publicly constantly on an exchange versus peri- when markets stabilise. equity capital markets at Credit Suisse
In January China’s foreign for an IPO but many more companies odically in the case of private deals. “Many of the jazzier companies found “There is that equilibrium.”
reserves dropped another
central banks are said to have filed confidentially. “The big Silicon Valley visionaries that they could raise virtually infinite “Innovation in the world of tech
$99.5bn, for a cumulative fall “For 2016 tech IPOs, the supply is who are trying to change the way things amounts of money while staying pri- shows the ability of these companies to
of $770bn from their peak in June 2014. Add in December there — market conditions are not,” says are done understand that the way to do vate,” says Ms Buyer. grow and scale more efficiently. That
and that gives an outflow of $207.4bn over two months. Matthew Kennedy, an analyst at Renais- that is to build a sustainable company Regulations no longer force compa- puts the pressure off the IPO as being the
“While the remaining $3.23tn of China’s forex reserves sance Capital, a manager of IPO that is public,” says Lise Buyer, an nies to go public after surpassing a cer- necessary capital to survive.”
still represents a substantial war chest, the mathematics
around this rapid pace of depletion of forex reserves in
recent months is simply unsustainable for any length of
time,” notes Rajiv Biswas, chief economist for the Asia- Capital markets
Pacific region at IHS Global Insight.
Divvying up the outflow is tough. Some is the continuing
unwinding of the carry trade; some is going to repay Chi-
nese companies’ foreign debt. It is also tricky to separate
Yield on 10-year JGB
out prudent diversification from capital flight. And how to
understand the rationale of Chinese enterprises, both pri-
blazes trail below zero
vate and state-owned, that make ever bigger acquisitions
offshore, regardless of their ability to manage these new
corporate toys? LEO LEWIS — TOKYO bonds, as investors reassess
There is much more that the PBoC could do to stem ELAINE MOORE — LONDON their holdings of equities and
capital flight, including eliminating the offshore market Government bonds trading corporate bonds.
where most of the currency selling action is concentrated with negative yields climbed David Tan, head of global
and where interest rates, having moved up, are far higher to a new peak of $6tn yester- rates at JPMorgan Asset
than in the onshore market. Once a country moves to day as Japan became the Management, said negative
liberalise its currency, it is difficult but not impossible first big economy with a interest rates were being
to reimpose controls. sub-zero borrowing rate for viewed as bad for bank earn-
Investing in China and beyond increasingly comes down 10-year debt. ings.
to second-guessing central banks and not only on currency “The principal driver of
positions. Take Japanese equities. They may have been Benchmark bonds issued by negative JGB yields was the
star performers for dollar-based investors but without the world’s third-largest BoJ’s deposit rate cut, and the
hedging the yen the returns last year would have been economy dropped to a yield market now expects addi-
negative. of minus 0.05 per cent as tional cuts starting from the
And the trajectory of the renminbi has consequences far investors sought shelter next BoJ meeting,” he said.
beyond China’s borders. Arguably the weakness of the Chi- from market convulsions “This has contributed to a
nese currency was one factor in the Bank of Japan’s deci- triggered by sliding oil sell-off in banking stocks and
sion to embrace negative interest rates, driving the yen prices, concern for the health a renewed flight to safety
briefly lower in the process. That move followed a call by of the global economy and into government bonds.”
the governor of the Japanese central bank for China to mounting fears over parts of Leading the slide among
adopt capital controls because a weakening renminbi the financial system. financials has been Deutsche
threatened Japan’s policy of currency depreciation to sup- Japan’s recent decision to Bank, with investors worried
port its exporters. introduce a charge on new that it might have trouble
In the past central banks were the last ones wishing to reserves parked with the repaying its debts.
see their currencies debased. Now it seems they are the central bank has rippled David Ader, bond strate-
biggest cheerleaders for depreciation. And never mind the across global government gist at CRT Investment Bank-
cost to the people who have seen their standard of living bond markets and investors ing, said: “The European
drop in line with the loss of income on their savings. expect central banks in banking system clearly
In this year of the monkey it is increasingly difficult to Europe to push overnight remains a meaningful con-
speak no evil when it comes to central banks. borrowing rates further into cern and memories of the
negative territory. credit crisis in the sector are
henny.sender@ft.com That has spurred strong still fresh.”
buying of positive-yielding For Tokyo the appreciating
government debt across the yen is an uncomfortable
eurozone, US and UK mar- development. A weak cur-
kets, bolstering other havens rency is one of the hallmarks
such as gold and the yen. of the Abenomics economic
More comment and data on ft.com “The bear market in risk revival plan.
assets is evolving very Investors suspect that
quickly,” said Andrew Milli- Japan Inc’s assumptions of an
Y Fast FT Our global economies, headed gan, head of global strategy average rate of Y117.5 against
team gives you market- by Brazil, Russia, India at Standard Life Invest- the dollar during 2016 could
moving news and views, and China. ments. “A month ago the lead to missed profit fore-
24 hours a day, five days ft.com/beyondbrics focus was China, then oil, casts and force the BoJ and
a week. ft.com/fastft then the prospect of US government into fresh action
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a recession. Now it is European — if more is possible.
irreverent financial blog. look at what is driving financial companies.” “If a 20bp cut won’t stop
Join Paul Murphy and the global currency The move comes 11 days the yen rising, what can the
Bryce Elder for the daily market. ft.com/podcasts after the Bank of Japan’s sur- Japanese authorities do?”
Markets Live session at prise decision to follow Swit- said Shusuke Yamada, Japan
Y Lex Video Analysis zerland, Denmark, Sweden FX strategist at Bank of
11am. ft.com/alphaville
and opinion from the and the eurozone by adopt- America Merrill Lynch.
Y beyondbrics News and team on the hot issues ing negative interest rates. Foreigners sold a net
comment from more affecting companies and The growing trend of nega- Y1.66tn of Japanese equities
than 40 emerging markets. ft.com/lexvideo tive yields has sapped senti- in January, according to offi-
ment for financial shares and cial figures.