WEDNESDAY 20 JANUARY 2016
00
Identity crisis
All the good online usernames
are taken — LISA POLLACK, PAGE 12
Brussels rule
change to put
greater refugee
burden on UK
3 Win for Italy and frontier countries
3 Options cut for northern states
DUNCAN ROBINSON — BRUSSELS
Brussels is to scrap rules that make the
first country a refugee enters responsi-
ble for his asylum claim, revolutionising
the bloc’s migration policy and shifting
the burden from its southern flank to its
wealthier northern members.
The “first-country” requirement is
the linchpin of the EU refugee system.
But it has become politically toxic for
EU leaders as Germany and other states
criticise frontier countries such as
Greece and Italy for failing to register
and shelter the 1.1m people that have
poured into Europe from the Middle
East and north Africa.
The policy broke down last year,
when Germany waived its right to send
hundreds of thousands of asylum-seek-
ers back to other EU member states but
exhorted its reluctant partners to shoul-
der more responsibility.
The European Commission has con-
cluded that the rule — part of the Dublin
regulation — is “outdated” and “unfair”
and will be scrapped in a proposal to be
unveiled in March, officials briefed on
its contents said.
The move could oblige some EU
members, such as Britain, to take in
many more refugees, since it would
become harder to send them back to
neighbouring countries. It could also
increase the pressure on EU members to
back a formal quota system as well as
common asylum rights and procedures
to spread the burden across the bloc.
European Council president Donald
Almond traders going
nuts amid price plunge
A ‘bloodbath’ has been declared in the
almond market, after a bumper crop
almost halved prices since last August.
Prices had been on the rise since 2009
on the back of the overall popularity in
treenuts, a drought in California, which
accounts for about 80 per cent of the
world’s supplies, and shipping delays.
But the relentless rise eroded demand
and buyers in China, the Middle East
and India, who had led consumption
over the past four years, disappeared.
Analysis i PAGE 30
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Tusk warned that the EU had “no more
than two months to get things under
control” or face “grave consequences”.
A change in the rules would be a vic-
tory for Matteo Renzi, Italian prime
minister, who argues the law is unfair
and that other member states should do
more to help with the refugee crisis.
Replacing the “first country of entry”
principle is likely to prove technically
and politically tricky. Northern Euro-
pean states, including the UK, are net
beneficiaries from the status quo, able
to transfer asylum-seekers back to
other states. Although the UK has an
opt-out on EU migration policy, it signed
up to the Dublin rules for this reason.
In practice, the rules have broken
down. Last autumn, Angela Merkel, the
German chancellor, waived the coun-
try’s right to return Syrian refugees to
the first country of entry, generating
praise and opprobrium — before revers-
ing course, triggering months of chaos.
Transfers to Greece have, in effect,
been banned since 2011 after the Euro-
pean Court of Human Rights said the
country’s asylum system was unfit for
purpose, even before the recent influx.
Although the rules provide for intra-
European deportation, few are carried
out. In 2013, 16,000 of 76,000 requested
transfers were completed. Potential
replacements include a plan that would
see asylum seekers split among states
based on GDP and population size.
Employers hit at migrant plans page 4
German teachers’ pay rise page 9
Tony Barber page 13
A la carte off the menu as Michelin-star
restaurants make push for new order
NATALIE WHITTLE
A stiff, white à la carte menu used to
signify a classic restaurant, with a
broad set of dishes to satisfy all tastes.
But a century after Auguste Escoffier
introduced London to the pleasures of à
la carte dining, at Pall Mall’s Carlton
Hotel, some of Britain’s leading restau-
rants are limiting the freedom of their
guests to choose their dinner to cut
waste and save money.
Stéphane Borie, a French chef at The
Checkers, a Michelin-starred restaurant
in Montgomery, Wales, has abandoned
his à la carte menu in favour of set
menus. “We’re hoping to halve our food
waste; with à la carte we never wanted to
run out of anything, so we’d cook a little
bit of everything. [This way] we’re
choosing for people what they’re going
to have, so we control the waste.”
STOCK MARKETS
Jan 19 prev %chg
S&P 500 1890.96 1880.33
Nasdaq Composite 4503.94 4488.42
Dow Jones Ind 16090.53 15988.08
FTSEurofirst 300 1310.95 1293.29
Euro Stoxx 50 2978.81 2935.39
FTSE 100 5876.80 5779.92
FTSE All-Share 3231.53 3183.92
CAC 40 4272.26 4189.57
Xetra Dax 9664.21 9521.85
Nikkei 17048.37 16955.57
Hang Seng 19635.81 19237.45
FTSE All World $ 241.15 239.50
WORLD BUSINESS NEWSPAPER
Mind reading
Big brother meets big data on China’s
internet — BIG READ, PAGE 11
Playing safe Dovish Carney says time
is not right for interest rates to rise
Timeshift: Mark Carney speaking at Queen Mary College in London yesterday
EMILY CADMAN
Mark Carney has pushed back
further the timescale for a rise
in interest rates, saying the
economy is not yet strong
enough to contemplate raising
rates from crisis-era lows.
In July, Mr Carney suggested
the decision about whether to
raise rates would come into
“sharp relief” around the turn
of the year. However, the con-
tinuing fall in the price of oil,
volatility in China and a slow-
down in wage growth in the UK
have moved the Bank of Eng-
land governor much further
into wait-and-see mode.
“The year has turned and, in
French chef, Claude Bosi of two-
Michelin starred restaurant Hibiscus in
London’s Mayfair, also decided this
month to jettison choice in his evening
service, offering instead one classic and
one “surprise” menu, both at £135.
Rebecca Burr, editor of the Michelin
guide in the UK, said à la carte dining
had declined in recent years as diners
often preferred tasting menus, seeing
their meals as a once-in-a-lifetime expe-
rience. “A lot of the chefs prefer to work
in that way but we’d hope they’d change
that menu on a regular basis. People do
want a little bit of choice at the top
level,” she said.
In Paris, the avant-garde restaurant
Septime offers only a “carte blanche”
menu in the evenings, leaving the five-
course meal entirely in the hands of chef
Bertrand Grébaut. Le Chateaubriand,
another example of Paris’s “bis-
World Markets
CURRENCIES
Jan 19 prev
0.57 $ per € 1.090 1.088 € per $
0.35 $ per £ 1.414 1.427 £ per $
0.64 £ per € 0.771 0.762 € per £
1.37 ¥ per $ 117.785 117.395 ¥ per €
1.48 ¥ per £ 166.596 167.564 £ index
1.68 € index 87.089 87.435 $ index
1.50 SFr per € 1.094 1.095 SFr per £
1.97 COMMODITIES
1.50 Jan 19
0.55 Oil WTI $ 30.11
2.07 Oil Brent $ 29.30
0.69 Gold $ 1086.25
UK £2.70 Channel Islands £3.00; Republic of Ireland €3.
Office snooping
Using technology to spy on your
workers — SARAH O’CONNOR, PAGE 14
Briefing
i Fallon to call for tightening noose on Isis
The defence secretary will today push for a more
concerted effort to attack the “head of the snake” as
ministers meet to decide military priorities. The
anti-Isis coalition is set to back a focus on the
group’s Raqqa stronghold and supply lines. — PAGE 2
i Morgan Stanley debt trading ‘failure’
Chief executive James Gorman has admitted that
the bank’s push to turn round its ailing debt-trading
business has been a “failure” as weak results were
salvaged by a strong equities performance. — PAGE 17
i Sheffield steelmaker to slash jobs
The steel crisis has deepened with the 300-year-old
Sheffield Forgemasters International, Britain’s last
independent producer, cutting up to 100 jobs after
seeing its first loss for more than a decade. — PAGE 4
i Chechnya leader targets Putin critics
Chechnya’s strongman leader Ramzan
Kadyrov has sent shivers through the
opposition community by calling for
a crackdown on opponents of
Vladimir Putin, in a move seen as a
threat of violence. — PAGE 9
i Bitcoin technology call for NHS
Chief government scientist Sir Mark Walport has
urged adoption of the shared database technology
behind bitcoin to improve everything from tax
collection to the sharing of health records. — PAGE 3
i Driverless cars threaten UK insurers
Standard & Poor’s has warned that the development
of driverless and automated cars could shrink the
size of the UK motor insurance market and force
insurers to diversify. — PAGE 23; LOMBARD, PAGE 22
— Frank Augstein i Beijing lists official reincarnations
China has launched an online database listing 870
government-certified reincarnations to root out
my view, the decision proved that a rate rise may now not “fake living Buddhas” but exile groups say the move
straightforward: now is not yet come until 2017, Mr Carney is further interference in Tibetan culture. — PAGE 8
the time to raise interest rates,” said monetary policy would
he said. “The world is weaker “depend on economic pros- Datawatch
and UK growth has slowed.” pects, not the calendar”. He
His speech at Queen Mary would need to see notable
Real house prices
College in London came as progress in three main areas Spanish house
Rebased
China announced growth in the before he would be voting to prices started to
fourth quarter at its lowest level tighten rates: momentum in Germany UK 140 grow in mid-2014
Italy US but they are still
since 1990 at 6.8 per cent, with economic growth, a firming in
Spain 120 30 per cent lower
steel production and power domestic cost pressures and than at the start
generation both contracting for evidence inflation is on track to of 2010. They have
100
the first time in 25 years. The return to its 2 per cent target. risen steadily in
IMF trimmed its global growth Wait and see page 3 Germany since
80
forecast and warned of IMF page 6 then and in the
“broader contagion effects” if Beijing struggles page 7 60 past three years in
the new year slump in financial Editorial Comment page 12 the UK and US.
markets continued. Martin Wolf page 13 2010 11 12 13 14 15 They continue to
In a dovish speech, which will China’s tremors page 20 Source: OECD fall in Italy
reinforce market conviction Markets page 31
tronomique” movement, similarly
sticks to a menu unique at €70, for which
diners queue hours ahead.
A “one price fits all” approach even
includes the tip at New York’s Eleven
Madison Park. Its $295 seasonal tasting
menu, the only one on offer, features
10-15 courses and drinks. Tips “are nei-
ther expected nor accepted”.
Cheaper fixed menus are also being
used by top London restaurants to fill
lunch tables. Nobu offers a bento box
with glass of prosecco for £38, while
Fera at Claridge’s has three courses and
glass of champagne for £39.
At Hedone, head chef Mikael Jonsson
has taken a more extreme tack: “We
have no menus, we have two spending
levels . . . people tell us how much they
want to spend [£85 or £125] and give us
restrictions that they don’t like this or
that, and we design the menu.”
INTEREST RATES
Jan 19 prev price yield chg
0.918 0.920 US Gov 10 yr 101.65 2.06 0.01
0.707 0.701 UK Gov 10 yr 102.44 1.73 0.03
1.298 1.312 Ger Gov 10 yr 104.85 0.48 0.01
128.368 127.673 Jpn Gov 10 yr 100.85 0.22 0.01
87.991 87.830 US Gov 30 yr 103.36 2.83 0.00
106.978 106.509 Ger Gov 2 yr 102.74 -0.34 0.00
1.419 1.437 price prev chg
Fed Funds Eff 0.24 0.12 0.12
prev %chg US 3m Bills 0.25 0.22 0.03
29.97 0.47 Euro Libor 3m -0.15 -0.15 0.00
28.55 2.63 UK 3m 0.59 0.59 0.00
1089.20 -0.27 Prices are latest for edition Data provided by Morningstar
2 ★ FINANCIAL TIMES Wednesday 20 January 2016

NATIONAL

Syria strategy Libya

Fallon wants to ‘tighten noose’ around Isis Extremists

Defence secretary backs
more air strikes on jihadi’s
Raqqa stronghold
GEORGE PARKER — POLITICAL EDITOR
Michael Fallon, the defence secretary,
will today call for a shift in coalition
strategy against Isis, with a new focus on
“tightening the noose” around the
extremist group’s stronghold in Raqqa.
Mr Fallon will join fellow defence
ministers in Paris to decide military pri-
orities for 2016, where the coalition is
expected to back a new focus on bomb-
ing Isis oilfields, supply lines and com-
mand centres.
The new strategy will focus on more
elusive Isis targets and could bring the
risk of higher civilian casualties, but Mr
Fallon told the Financial Times the time
was right to bring more pressure to bear
on “the head of the snake”.
Mr Fallon said the 2015 military cam-
paign had focused heavily on providing
air support to Kurdish and Iraqi forces
fighting militants because “they were up
against it”. He said there had been “sig-
nificant progress”.
But today’s meeting is intended to
give the US-led military campaign
“more overall political direction” and
“to reshape the strategic direction of the
campaign”, taking the fight to Isis in its
heartlands.
Mr Fallon will join defence ministers
from the US, France, Australia, Ger-
many, the Netherlands and Italy to dis-
cuss a new campaign aimed at oil wells,
Regulation. New appointment
logistics dumps, supply routes and com-
mand centres.
“In Syria I would like to see the noose
tightened in Raqqa and to bring some
hope and freedom to the people of that
city.InIraqIwouldliketoseeDaesh[Isis]
pushed much farther north up the Tigris
andallalongtheEuphratesinthewest.”
Mr Fallon discussed the new
approach last year with Ashton Carter,
the US defence secretary, and Jean-Yves
Le Drian, his French counterpart, but it
is accompanied by significant problems.
While the predominantly US strikes
against Isis last year were aimed at com-
batants on the field of battle, the new list
of targets will be harder to find and will
often be located in urban areas.
Mr Fallon insisted there would be
enough targets to hit but he accepted
that finding them in Syria would be
harder than in Iraq; he wanted to
“streamline” the time it took between
locating a target and bombing it.
He accepted there could be civilian
casualties but said precision weapons
such as the RAF’s Brimstone missile
would be used. Mr Fallon said no civil-
ian casualties had so far been linked to
RAF strikes, but “it is not possible to
eliminate all risk of civilian casualties”.
‘I would like to bring some
hope and freedom to the
people of Raqqa’
Michael Fallon, defence secretary
The renewed focus on Isis-controlled
oilfields — known in the US as Tidal
Wave II — is aimed at restricting the flow
of cash to the militants.
Mr Fallon said the RAF was already
“upping the tempo” of its attacks after
MPs authorised strikes against Isis tar-
gets in Syria last month. Britain had
already been attacking targets in Iraq.
He said that between May and Octo-
ber there were an average of 30 British
strikes a month but that had risen to 80
in December; last week the RAF made
nine attacks in Syria and 10 in Iraq.
But Mr Fallon admitted he was con-
cerned by a renewed hardening of Rus-
sian support for President Bashar al-As-
sad of Syria, particularly Moscow’s tar-
geting of “moderate” anti-regime forces
around Damascus.
joined UK in
Gaddafi fight,
admits Fox
JIM PICKARD
CHIEF POLITICAL CORRESPONDENT
The UK was aware there were probably
“extremist elements” within the
Libyan rebel forces it helped to fight
Muammer Gaddafi in 2011, it emerged
yesterday.
Liam Fox, former defence secretary,
said there had been no appetite in the
British military for action in Libya, add-
ing: “There was no plan for regime
change.”
Asked whether ministers knew that
Islamist jihadis were involved in the
uprising against the Libyan dictator
four years ago, he told the Commons
foreign affairs committee: “There was a
view that there was such a disparate
grouping, that it was likely there would

FCA seeks strong leader after year of storms
Chancellor and top candidate
in Davos as MPs question City
watchdog’s independence
CAROLINE BINHAM, EMMA DUNKLEY AND
GEORGE PARKER — LONDON
As George Osborne arrives in the Swiss
ski resort of Davos this week, the ques-
tion of who can run the Financial Con-
duct Authority will weigh on his mind.
Last year was an annus horribilis for
the UK’s financial regulator and life has
not improved so far in 2016.
Today, the acting head and chairman
of the FCA will be scrutinised by MPs on
the Treasury select committee about
why it quietly dropped a promised
review into the culture of Britain’s
banks.
They may also face questions about
whether regulators have softened their
stance towards the City of London since
Mr Osborne’s Conservative party won
last year’s general election.
“Recent revelations may not point to
a definitive smoking gun in terms of
direct influence, but it is becoming
increasingly difficult to believe the deci-
sion was driven purely by internal
forces at the FCA,” said Mark Garnier, a
Tory member of the select committee.
“Consumers and those who are regu-
lated need confidence that the regulator
makes its own impartial decisions.”
Waiting for the chancellor in Davos is
the frontrunner to take over at the FCA,
Greg Medcraft, the 59-year-old head of
Australia’s securities regulator.
Mr Medcraft has been interviewed for
the top job and still wants it, according
to insiders. He has not, however, yet met
Mr Osborne, who makes the ultimate
decision on who gets the position.
Both Mr Medcraft and Mr Osborne
are attending the World Economic
Forum’s annual conference,
which attracts the business elite
as well as policymakers and pol-
iticians from around the world.
No official conversation has
been organised — and Treas-
ury insiders have dis-
counted any discussions
over the vacancy at
Davos — but it will be
the first occasion
with the two in the
same place at the
be some extremist elements in it.”
William Hague, the former foreign
secretary, defended the decision to
intervene, saying it was right to avoid a
potential massacre in Benghazi along
the lines of previous conflicts such as in
Rwanda and Bosnia.
The committee is investigating the
run-up to the UK decision to join a mili-
tary coalition, including naval power
and air strikes, to stop Gaddafi’s troops
entering Benghazi and then to attack his
ground forces. The probe comes amid
concerns Libya has become a failed
state and haven for Isis militants.
Yesterday, members of a proposed
national unity government were named
under a UN-brokered deal aimed at
uniting the country’s warring factions.
Regime change:
Liam Fox admitted
that the power
vacuum in Libya
had attracted
radical elements
Libya has two rival parliaments, each
backed by different armed groups.
The UK has offered troops to support
a 5,000-strong Italian force to help
Libya’s fledgling security forces take on
Isis, which has a substantial presence in
the west of the country.
Dr Fox was challenged by John Baron,
a Conservative MP on the foreign affairs
committee, as to whether the Anglo-
Greg Medcraft, same time. the City in the wake of financial scandals the select committee to veto the French military action had empowered
below left, Whoever eventually secures the role and accompanying multi-billion-pound appointment of its new boss. Isis in the region. “I think it is always
frontrunner to will have to grapple with an organisa- fines. But Harriett Baldwin, City minister, true that where a power vacuum is cre-
head the FCA, tion whose strategy is in flux and whose Since that speech last June, there have refused to give MPs the final say, arguing ated, forces of insurgency are likely to
and George morale was low even before the latest been several emollient moves, most that it was appropriate only for the com- be drawn into it,” Dr Fox admitted.
Osborne will PR disaster that sparked today’s hear- notably last summer’s defenestration of mittee to hold a “pre-appointment Various accounts of the lead-up to the
both be at the ing. the FCA’s chief executive, Martin hearing” before the new chief executive action suggest Dr Fox was a reluctant
World Economic The recruitment process has been Wheatley, who was widely seen to be a was in post. participant.
Forum in “hindered” by the political storm that scourge of bankers presiding over those An announcement on who will lead It was David Cameron, the prime min-
Switzerland has surrounded the FCA over the past headline-grabbing penalties. the 3,000-strong organisation will be ister, who agreed with Nicolas Sarkozy,
this week three weeks, according to headhunting For the FCA, it was a nadir in a year made in the coming weeks, according to then French president, that military
Ruben Sprich/Reuters
experts. that began with several senior depar- Treasury insiders. force should be used to prevent the
“It was always going to be a very diffi- tures in the wake of an imbroglio over a “It’s a tough job, needing a real leader death of civilians in Benghazi, where
cult job to fill,” said Nick Hedley, a botched press briefing that led to shares with the full range of skills,” said Marga- Gaddafi’s troops were about to massacre
founder of Hedley May, the recruiters. of the major UK insurers plummeting; ret Cole, the ex-regulator now at PwC thousands of people.
“Each CEO will make mistakes but the and which ended with revelations in the and a mentor to Ms McDermott. “The That intervention led some months
problem at the FCA is that those mis- FT over the shelving of the cultural first priority should be to restore the later to the fall of the Gaddafi regime
takes are magnified, and we are not review. credibility of the organisation, recover- and the killing of the dictator at the
in a very forgiving environment at Mr Wheatley’s ousting by the chancel- ing its sense of purpose and persuading hands of the rebels.
the moment. So each potential candi- lor precipitated a leadership crisis that ‘It’s a tough talented people that it’s a great place to Lord Hague admitted Libya had been
date will be thinking whether his or is still not resolved, and which was com- work.” left in a “terrible state” but defended the
her reputation will be plicated further by Mr Osborne when he job, needing The FCA leadership is just one chal- decision to intervene. The west had
enhanced by taking that revealed this month that the leading a real leader lenge for Mr Osborne: there is also the been presented with two “unpalatable
job.” internal candidate and acting CEO, question of who will succeed Sir Nicho- alternatives”, he argued.
The shelving of the Tracey McDermott, was no longer inter- with the las Macpherson when he steps down as “Faced with that situation again, vir-
bank review has been ested in the top job full-time. full range Treasury permanent secretary in April. tually on the border of Europe, we
questioned in light of a Mr Osborne came under pressure Dame Lin Homer, the chief executive of should take that decision again to pro-
pledge by Mr Osborne to from Mr Garnier yesterday to prove the of skills’ HM Revenue & Customs, also tect civilian life,” he said.
find a “new settlement” with watchdog’s independence by allowing announced her resignation this month. Unity government page 8

We Want Your Business EU referendum Election inquiry

Cameron to stay as PM if he Report on Labour’s poll defeat

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loses Brexit poll, says Grayling highlights tough task ahead
GEORGE PARKER AND KATE ALLEN
David Cameron will stay on as prime
minister to negotiate Britain’s exit
from the EU if he loses his European
referendum this year, according to
Tory cabinet minister Chris Grayling.
Mr Grayling, the Eurosceptic Leader of
the House of Commons, is expected to
campaign for a Brexit but suggested that
Mr Cameron would have a duty to stay
on in Number 10 if the country voted to
leave.
“Firstly, he’s got a mandate for five
years from the people of this country,”
he said. “Secondly, if we were to vote to
leave I think that there is then a big chal-
lenge to prepare the ground for leaving,
to negotiate the terms on which we
would leave.
He added: “The idea that we would
destabilise our government at that
moment in time by trying to get through
a protracted leadership contest would
be absolutely the wrong thing to do.”
However, some Conservative MPs
believe that Mr Cameron would resign if
he lost the referendum, rather than
spending his remaining years in Down-
ing Street negotiating the terms of a
British exit from the EU.
Mr Cameron has said he would not
quit if he loses the EU referendum but
he said the same thing at the time of the
Scottish independence vote. He later
admitted he would have resigned if
Scots had voted to break up the UK.
Mr Grayling has won private assur-
ances from Mr Cameron that he can
keep his job in the cabinet provided he
campaigns for a Brexit in a respectful
way and does not exacerbate splits in
the party.
Mr Cameron hopes to conclude a
reform deal with fellow European lead-
ers at a summit in Brussels next month,
including reaching an agreement to
restrict welfare payments to migrant
workers. Although Mr Cameron is
unlikely to win support for his plan to
ban migrants from claiming in-work
benefits for four years, other western
European countries are looking for
alternative solutions.
JIM PICKARD AND GEORGE PARKER
Labour lost last year’s general election
because Ed Miliband was seen as weak
and the party was tarnished by the eco-
nomic crisis, according to an internal
report by Dame Margaret Beckett.
The former foreign secretary found that
voters were also worried by Tory claims
that Labour would work with the Scot-
tish National party.
The report provides a number of rea-
sons for Labour’s defeat, including the
rise of the SNP, the collapse of the Lib-
eral Democrats and Labour’s failure to
convince voters of its welfare and immi-
gration policies.
It also points to the tough struggle
ahead for Labour, which needs to gain
94 seats to achieve a majority of two,
even before looming boundary changes.
The report was released yesterday as
research suggested Labour had plumbed
new polling depths since Jeremy Corbyn
becameleaderinSeptember.
Instead of achieving a poll bounce
under the new leadership, it was trailing
the Tories by an average of 8 points,
according to the Press Association
research.
That is the worst poll deficit recorded
by Labour at this point in the election
cycle since polls began in the 1940s.
David Miliband, former foreign secre-
tary, said yesterday that politicians on
the “extremes” were flourishing
because those on the centre-right and
centre-left had failed to come up with
compelling answers to big questions.
Dame Margaret said Labour achieved
an average swing of 4.8 per cent against
the Tories in seats that were already safe
— rather than target marginals.
She urged the leadership to campaign
in simple, ordinary language and draw
up a proper media strategy. The Tories
had taken on board the New Labour
tenet of “repetition and rebuttal” and
clear messaging, she said.
Dame Margaret said Labour was still
widely blamed for the economic crash.
“It was impossible to avoid attracting
some of the blame for it occurring, how-
ever unfair that might be.”
Wednesday 20 January 2016
Carney to wait and see after ‘elegant swerve’
BoE governor drops guidance given in July that suggested decision on rates would come into ‘sharp relief ’ at turn of year
EMILY CADMAN
Britain may still be sitting close to the
top of the international growth table for
advanced economies, but in a speech
yesterday Mark Carney, governor of the
Bank of England, was clear the economy
is too weak for him to contemplate rais-
ing interest rates from crisis era lows.
The discrepancy is a reminder that
even seven years on from the crash,
there is still a long way to go before nor-
mal service is resumed.
While optimists trumpet Britain’s
near record levels of employment,
robust consumer spending and solid
business investment, pessimists point
to subdued wage growth, a significant
current account deficit and the prospect
of another parliament of fiscal consoli-
dation.
Stack these domestic concerns along-
side the continued fall in the price of oil
and volatility in China and Mr Carney is
unambiguously in wait-and-see mode.
“The year has turned and, in my view,
the decision proved straightforward:
now is not yet the time to raise interest
rates,” he said. “The world is weaker and
UK growth has slowed.”
In July, when prospects looked rosier,
the governor had suggested the decision
about whether to raise rates would
come into “sharp relief” around the
turn of the year, but yesterday he deci-
sively buried that guidance.
Four hours after Mr Carney spoke,
economists at the Royal Bank of Scot-
land postponed their prediction of an
interest rate rise by six months, to Feb-
ruary 2017.
Michael Saunders, an economist at
Citi, described the change in guidance as
a “fairly elegant swerve”.
Sterling, which has endured a torrid
start to the year, fell to a seven-year low
against the dollar as traders decided the
governor had kicked the prospect of a
rate rise this year into the long grass.
The pound has lost nearly 5 per cent
in a month against the dollar, after signs
of increased divergence between the US
and UK economies. While the Federal
Reserve became the first big western
central bank to raise rates, there has
been a string of disappointing economic
data releases in the UK.
In the week before Christmas, the
UK’s public finance figures came in far
weaker than expected, with the govern-
ment needing to see a sharp improve-
ment if it is to meet the annual borrow-
ing target it set in the autumn. Then the
rate of overall economic growth was
revised down to show the slowest
annual pace of expansion in two years.
Frances O’Grady, general secretary of
the TUC, said the recovery was becom-
ing “more vulnerable” and called on the
government to invest more in skills and
infrastructure. But despite these warn-
ing signals, the clear majority of econo-
mists questioned by the FT in its annual
start of the year survey expected the UK
to see another good year of growth. Just
hours before Mr Carney’s comments,
the International Monetary Fund also
delivered an upbeat verdict on the UK,
leaving its growth outlook unchanged at
2.2 per cent for this year, second only to
the US among the G7.
Philip Shaw, economist at Investec,
said while the pace of growth this year
looked weaker than last, it was “difficult
to see the economy grinding to a halt.”
Rob Wood, economist at Bank of
America Merrill Lynch, said: “It is not so
much that the UK is doing badly, but
Databases
Use bitcoin technology for NHS, says top aide
ROBERT COOKSON
The UK should harness the technology
behind the cryptocurrency bitcoin to
transform the provision of public serv-
ices such as the National Health Serv-
ice, according to the government’s
chief scientific adviser.
Sir Mark Walport published a report
yesterday arguing that the blockchain —
the shared database technology that is
best known for powering bitcoin —
should be used to improve everything
from tax collection to the sharing of
health records.
“It has the potential to redefine the
relationship between government and
the citizen in terms of data sharing,
transparency and trust,” Sir Mark said.
At its core, the blockchain is a tech-
nology for storing and sharing informa-
tion. But unlike conventional databases,
which are controlled from a single point,
the blockchain is a “chain” of “blocks” of
data that is held by a network of com-
puters.
Peter Roe, an analyst at Tech Market
View, a research company, said the
blockchain “is certainly going to be a
very important technology” and would
have a number of applications in public
services.
‘Now is not yet the
time to raise
interest rates.
The world is
weaker and UK
growth has slowed’
The BoE is no closer to
raising rates despite the
UK’s strong recovery …
Real GDP (Q1 2011=100)
US Germany
UK France 110
Japan Italy
105
100
95
90
2011 12 13 14 15
FT graphic Source: Thomson Reuters Datastream
Purchasing power
Inflation hits lowest
level since the 1960s
The UK last year experienced the
lowest inflation for half a century,
official figures confirmed yesterday.
After months of bumping around
zero, inflation rose modestly in
December to 0.2 per cent owing to
more expensive air fares. But this was
only sufficient to ensure that average
prices for the year as a whole remained
unchanged at zero per cent.
Annual inflation has never been this
low under the consumer price index,
which began in 1989. It is estimated
that it was last this low in the 1960s.
Low inflation has been good for
consumers, who have been able to
regain some purchasing power after
years of incomes running below the
rate of price increases.
British households are continuing to
The advantages that the blockchain
offers over legacy database systems, he
said, included increased security, trans-
parency, and the fact that multiple par-
ties can write information into the data-
base.
But Mr Roe cautioned that the tech-
nology would take a number of years to
implement, as “there’s always a diffi-
culty in bringing in something so new
and different in tandem with legacy sys-
tems”.
The first application of the blockchain
was to money. However, bitcoin has
The blockchain
could move from
powering bitcoin
to a range of
applications, says
yesterday’s report
been bogged down in scandals including
its role in facilitating illegal drug-dealing
in the now-defunct black market web-
site Silk Road.
Sir Mark’s report said: “Distributed
ledger technologies have the potential
to help governments to collect taxes,
deliver benefits, issue passports, record
land registries, assure the supply chain
of goods and generally ensure the integ-
★ FINANCIAL TIMES
NATIONAL
… since pay growth
has lost momentum…
Annual growth in regular pay,
excluding bonuses (%)
3.0
2.5
2.0
1.5
1.0
0.5
2013 14 15
benefit from the supermarket price war
as well as the lower cost of imports and
the fall in food prices.
Timo del Carpio, economist at RBC
Capital Markets, said the overall
message was still one of “limited
inflationary momentum”.
With recent falls in oil prices
increasing the chances that inflation
will remain low for longer, and pay
pressures weakening, the Bank of
England is under no pressure to follow
the Federal Reserve in raising interest
rates, despite the economic recovery.
rity of government records and serv-
ices.”
Blockchain technology is still at an
early stage and moving any of the UK’s
public services away from their existing
IT systems is likely to prove difficult,
expensive and potentially risky.
Yet there is a precedent. The Estonian
government has been experimenting
with distributed ledger technology for a
number of years using a system known
as Keyless Signature Infrastructure. The
technology allows citizens to verify the
integrity of their records on government
databases.
The UK and Estonia are not the only
governments investigating the block-
chain’s potential: Honduras is using the
technology to handle land titles while
the Isle of Man has begun testing the
technology with a registry of companies
on the island.
Blockchain has been hailed by admir-
ers as holding the revolutionary prom-
ise that the internet did two decades
ago. Banks, insurers and companies
ranging from IBM to PwC are also seek-
ing to harness the power of the block-
chain, in the belief that it could lead to
greater efficiency.
Notebook page 12
Digital divide page 13
… inflation is not
approaching the 2% target …
Annual % change in CPI
3 10
All items
2
Core -
excluding
1 the year to the end of November.
energy & food
0 6
2013 14 15
Most economists have pushed back
forecasts for the first rate rise into
November. Markets are not pricing in
an increase until 2017.
Alan Clarke, economist at Scotiabank,
said the fact that air fares rose 46 per
cent month on month in December —
compared with the typical seasonal
increase of about 20 per cent — was an
important signal.
“With oil prices and hence fuel prices
slumping over the last year, the fact
that airlines can raise prices to this
extent demonstrates robust underlying
pricing power and strong consumer
demand. Consumers are spending the
windfall from lower outgoings on food
and petrol,” he said.
Core inflation, a measure that
represents domestic inflation pressures,
rose by more than the market expected
to 1.4 per cent. But with much of the
rise due to the air fare component,
analysts were reluctant to give this too
much weight. Emily Cadman
Exports
Lamont becomes trade envoy to Iran
JIM PICKARD
CHIEF POLITICAL CORRESPONDENT
Norman Lamont has been appointed
UK trade envoy to Iran as part of a
wider government attempt to improve
Britain’s disappointing export record.
The appointment of the former chancel-
lor to the new role comes three days
after a series of international sanctions
were lifted as a reward for Tehran drop-
ping parts of its nuclear programme.
Lord Lamont, who already chairs the
British Iranian Chamber of Commerce,
is one of 12 new trade envoys, most of
them former Conservative MPs. There
are now 24 trade envoys representing
Britain in 50 high-growth emerging
markets from Ethiopia to Taiwan.
The news came as part of a shake-up
of UK Trade and Investment, the
quango that supports companies selling
goods and services overseas. David
Cameron has set a target of doubling the
UK’s annual exports to £1tn by 2020
but official forecasters have warned
export growth could average less than
5 per cent a year from 2015 — less than
half the rate needed.
UKTI, which employs about 2,500
people, will be rebranded as a “strategic
hub” supporting activity across White-
… and the international
outlook is uncertain
Chinese GDP Oil price
growth (annual (Brent, $
% change) per barrel)
120
100
9 London were each up 9.8 per cent.
80
8 east, UK prices rose 5.8 per cent in
60
7 40
20
2011 12 13 14 15 16
there are an awful lot of risks out there
at the moment.”
Aside from international concerns,
the biggest puzzle for the BoE is the out-
look for the labour market.
While the latest figures are not due
out until today, data in recent months
have signalled the UK has been return-
ing to a pattern of solid job creation, but
subdued wage rises. One possibility is
that negligible headline inflation, which
has bumped around zero for the past
year, may have been a significant driver
of lower pay awards.
With low commodity prices and sub-
dued global price pressures expected to
exert a persistent downwards drag on
inflation, the BoE needs to see wages ris-
ing if inflation is to return towards its 2
per cent target. One of the biggest
unknowns is how employers will
respond to the new higher minimum
wage, which the chancellor, George
Osborne, plans to increase to £9 an hour
for over 25 year olds from 2020. Much
will depend on whether employers
respond by cutting jobs, raising prices,
hall, with many of its officials working
out of other departments. For example,
the quango will lend experts to the
Department for Environment, Food and
Rural Affairs to set up a “Great British
Food Unit”.
Ministers in each department will be
responsible for the development and
delivery of sector export plans. “A refo-
cused UKTI will be at the centre of a co-
ordinated cross-government approach,”
said Sajid Javid, business secretary.
“Relevant departments will share
expertise to get UK businesses export-
Lord Lamont has a newly created
role promoting exports to Iran
3
Rising prices
Housing market shows
no sign of cooling
The rising cost of buying a home in
the UK shows little sign of slowing,
with prices accelerating slightly in
November, according to the latest
monthly index of house prices from
the Office for National Statistics.
Prices rose 7.7 per cent in the
year to November, up from 7 per
cent in the year to October, while
the average cost of a home reached
a record of £288,000.
Earlier this month, Halifax, the
UK’s largest mortgage provider,
said prices rose 9.5 per cent last
year, the fastest rate since 2006.
However, building society
Nationwide estimated the rise was
much smaller at just 4.5 per cent. A
number of independent researchers
are predicting prices to slow in the
next couple of years. EY Item Club
last week forecast house price
growth would moderate in 2017 and
2018, falling to about 4.5 per cent.
Rightmove, the online property
site, calculates there was a 6.6 per
cent increase in starter homes
coming to the market last year,
putting the brakes on price rises
faced by first-time buyers.
Nationwide said in December
that the price gap between London
and the south-east and other
regions would narrow this year.
Property experts point to
analysis by Halifax suggesting the
price-to-income ratio was 5.5 times
in November, the highest it has
been since early 2008.
The ONS data show the fastest
growth in the year to November
was in the east of England, at 10.2
per cent. The south-east and
Excluding London and the south-
Prices in England rose 8.3 per
cent, compared with 1.3 per cent in
Wales, 0.4 per cent in Scotland and
4.6 per cent in Northern Ireland.
John Murray Brown
accepting lower profits or trying to
boost worker productivity.
The combination of these factors
means it is clear interest rates are going
nowhere fast. In a uniformly dovish
speech, Mr Carney said monetary policy
would “depend on economic prospects,
not the calendar”. While he refused to
put any new timeframe on the decision,
the governor said he would need to see
notable progress in three main areas
before he would be confident in voting
to tighten rates: momentum in eco-
nomic growth, a firming in domestic
cost pressures, and evidence inflation is
on track to return to its 2 per cent target.
Running through factors that have
kept rates low — including lower public
investment, demographic change, and
households paying off debt — Mr Carney
said that given the “likely persistence”
of these forces, interest rates would
“recover only gradually and to a limited
extent compared to the pre-crisis era”.
He said: “The journey to monetary pol-
icy normalisation is still young.”
Editorial Comment page 12
ing.” The quango will also offer more
“practical and direct” support products
for companies, instead of just advice.
UKTI saw its budget cut in November
by £42m against a previous estimate of
£1.2bn for the four-year Whitehall
spending period.
Lee Hopley, chief economist at the
EEF manufacturers’ group, said the
restructuring had the potential to help
companies but added there was “cause
for caution”.
Some officials are braced for job cuts,
although so far there has been only a
“voluntary exit scheme”.
UKTI has about 450 staff working at
its London headquarters, more than
600 elsewhere in Britain and 1,300
working on trade promotion abroad.
The shake-up comes amid growing
concern about Britain’s yawning current
account deficit, which last year came
close to a postwar record. The current
account — the trade balance, plus earn-
ings from investments held overseas —
is seen as a key indicator of a country’s
ability to pay its way in the world.
George Osborne, the chancellor,
admitted yesterday that Britain might
struggle to hit the trade target. “It was
right to set a stretching target even if it
is challenging,” he said.
4 ★
Skilled workers
Employers decry migrant curb proposals
Advisory committee
offers Cameron options
to reduce ‘tier 2’ entrants
GONZALO VIÑA
PUBLIC POLICY REPORTER
Recommendations to the government
for tighter rules to curb the number of
skilled migrants coming to work in the
UK have been criticised by employers,
who said the measures would increase
costs and make hiring harder.
A levy on employers hiring from
abroad, higher minimum salaries and a
clampdown on overseas IT contractors
are all measures proposed by the Migra-
tion Advisory Committee in a report out
yesterday.
David Cameron, prime minister, is
looking at ways to tighten the rules for
“tier 2” visas to bring net migration
down to the promised “tens of thou-
Sheffield
Steel crisis spreads as
last British independent
company unveils job cuts
ANDREW BOUNDS
NORTH OF ENGLAND CORRESPONDENT
Britain’s last independent steelmaker
is cutting up to 100 jobs as the crisis in
the industry deepens.
Sheffield Forgemasters International
has recorded its first loss for more than a
decade and blamed a slowdown in the
oil and gas sector as well as the collapse
in steel prices.
Graham Honeyman, chief executive,
said the redundancies were vital to pre-
serve the business but said a turnround
plan would work.
“It’s been a very difficult period,” he
said. “There is not enough work for the
world’s forge masters. There’s a fight to
win contracts and some prices are so low
we can’t even bid. Some of our competi-
tors are working two-day weeks.”
He said the oil and gas markets that
accounted for 42 per cent of turnover
had almost disappeared because of low
oil prices.
Forgemasters makes steel for its own
castings and forgings to make parts for
the nuclear, engineering and oil indus-
tries, but also supplies ingots and coil
rolls to others.
Mr Honeyman said there would be no
let-up in the short term for bulk steel-
makers, which have shed or announced
plans to shed 6,000 jobs in the past year.
Tata Steel, the UK’s largest producer,
on Monday announced 1,050 job cuts,
chiefly at Port Talbot in South Wales.
SSI of Thailand closed its Redcar
works in north-east England in October,
laying off 2,200 employees.
“I cannot see the situation improving
in the next 12 months or so,” Mr Honey-
man said.
He backed industry chiefs who have
called for more help on energy prices
and business rates, which he said were
far higher than those paid by interna-
tional competitors. Energy was 15 per
cent of costs for the Sheffield-based
Journalistic material
Terrorism Act ‘incompatible’ with human rights
JANE CROFT
Anti-terror legislation that allows
police to stop travellers at ports and
airports does not contain adequate
legal safeguards to protect the rights of
journalists, the Court of Appeal has
ruled.
Three senior judges found that key pow-
ers contained in the Terrorism Act 2000
— which enables UK authorities to stop
and question individuals at airports,
ports and international train stations —
are “incompatible” with the European
Convention on Human Rights, which
protects journalistic material.
The case centred on an appeal by
David Miranda, the partner of a former
Guardian journalist who had challenged
the UK government over its use of so-
called Schedule 7 powers contained in
the act, which enables authorities to
stop and question individuals.
Mr Miranda is the partner of Glenn
Greenwald, at the time a Guardian jour-
nalist to whom US intelligence docu-
ments were leaked by Edward Snow-
den, a former US National Security
Agency contractor.
Mr Miranda was detained by
police for nine hours in 2013 under
Schedule 7 of the Terrorism Act while
sands” from the most recent figure of
336,000. Tier 2 is the main route to
work in the UK for workers from outside
the EU.
Sir David Metcalf, the migration com-
mittee’s chairman, said yesterday his
recommendations had to balance con-
flicting demands to cut immigration
without harming economic activity. The
Home Office, which welcomed the
report, will have to weigh Sir David’s
proposals against what the Treasury
and the business department want.
The measures, first revealed in the
Financial Times in December, “should
lead to a greater investment in UK
employees and reduce the use of
migrant labour”, Sir David said.
The GMB trade union, which is in dis-
pute with British Airways over 900 jobs
it says are being outsourced to special-
ists supplied by Tata Consultancy Serv-
ices, said the measures were a step in the
right direction.
business, he said, while the strong
pound had hit competitiveness.
Mr Honeyman said alleged Chinese
dumping of steel had not affected Forge-
masters. Unions want the EU to block
China’s attempt to be accepted as a mar-
ket economy by the World Trade Organ-
isation, which would reduce Brussels’
ability to impose tariffs.
Mr Honeyman expected Forgemas-
ters to break even by 2017 because it
had advanced technology and was win-
ning contracts in the US, Russia and in
the defence industry.
The 300-year-old company employs
700 after shedding about 80 jobs last
year. Mr Honeyman hoped to avoid
‘There’s a fight to win
contracts and some
prices are so low
we can’t even bid’
compulsory redundancies and said its
apprentices would be retained.
Forgemasters’ accounts for the 18
months to the end of 2014, after it
changed its recording date, showed a
loss of £9.4m on turnover of £122m.
Annual turnover in 2014 was about
£70m, Mr Honeyman said.
It was the first loss since Mr Honey-
man led a management buyout that
saved the company from liquidation in
2005.
In its last 12-month accounting
period, to June 30, 2013, turnover was
£100m and pre-tax profit £1.6m. Net
debt doubled from £8.4m in June 2013
to £16.6m at the end of 2014.
Mr Honeyman dismissed speculation
that Forgemasters required fresh
investment. “I own 49.5 per cent of the
company and unless someone offers
£1bn, which is never going to happen, I
am not selling. Our focus is on turning
the business round.”
travelling through Heathrow airport.
He was questioned and items in his
possession were taken from him,
including encrypted material he was
carrying to assist Mr Greenwald in his
journalistic work.
The Court of Appeal ruled yesterday
Law and policy
Risk emerges of possible
adverse binding ruling
The Court of Appeal held that the law
that was used to detain David Miranda
and obtain his materials is “lawful”.
However, the court also held that
the power that law gives the state is
incompatible with the right to free
expression guaranteed in the
European Convention on Human
Rights. This enabled the court to make
a rare so-called “declaration of
incompatibility” — a formal signal to
parliament the law needs changing.
Both the Police and Criminal
Evidence Act (for police) and the
Contempt of Court Act (regarding
court orders) contain safeguards when
journalistic material is at stake.
FINANCIAL TIMES
NATIONAL
But employer groups were quick to
decry the measures as too stringent. The
CBI, the biggest employer group, said
they “could hold back firms’ ability to
grow and create jobs, particularly for
exporting, medium-sized businesses”.
London First, which champions invest-
ment in the capital, called the measures
“bizarre”.
Increasing overall salary require-
ments would cut about 27,600, or 18 per
cent, from the 151,000 that come
through the tier 2 route. The special IT
sector measures would cut the number
of those workers by about 12,000, or
47 per cent. Sir David said the figures
were net of dependants travelling with
visa holders.
“We get the numbers down a bit but
simultaneously we continue to support
UK plc — we cut the numbers by one in
five. It is a balancing act,” said Sir David.
Julia Onslow-Cole, a partner at PwC,
the consultancy firm, said Sir David’s
Sparks fly: a worker inside a foundry ladle at Sheffield Forgemasters International — Jason Alden/Bloomberg
that he was lawfully detained under the
act and his human rights were out-
weighed by “compelling national secu-
rity interests”.
However, the three judges also con-
cluded more generally that the “stop
power” conferred by Schedule 7 was
The court in Mr Miranda’s case has
in essence held that it should not be
open to the security services to
circumvent these statutory provisions
by using powers under terrorism
legislation. This is not to say that
journalistic materials should have
absolute protection, but that there
should be a judicial stage before
materials are taken, rather than being
entirely at the discretion of officials.
The Human Rights Act was
designed to strike a balance between
the sovereignty of parliament and
enforcing rights under the ECHR.
But if parliament does not amend
terrorism legislation to provide
additional protection for journalistic
material, then the UK may face an
adverse binding ruling from the ECHR.
David Allen Green writes the Law
and Policy blog for the FT
calculations failed to take into account
other charges the government had
recently heaped on companies, such as
the apprenticeship levy. Once these
were factored in, the costs of employing
a tier 2 worker could rise by as much as
one-third on average, she said.
“We hope that the government
336,000 £30,000
Net migration Minimum salary
figure that David proposal, phased
Cameron has in to cushion staff
pledged to cut such as nurses
incompatible with human rights law
relating to journalism information or
material.
In what is being hailed as a victory for
press freedom, the three judges found
that the stop power “is not subject to
sufficient legal safeguards to avoid the
risk that it will be exercised arbitrarily”.
The act also “contains no adequate
legal safeguards relating to journalistic
material . . . or to journalistic material
the disclosure of which may identify a
confidential source”, the ruling added.
Lord Dyson, Master of the Rolls, also
concluded that it was for parliament to
provide stronger protection for journal-
ists.
Schedule 7 of the act has been contro-
versial because the police do not need to
have a “reasonable suspicion” — the
normal bar before someone can be
questioned — that the individual is
involved in terrorism before deploying
the powers.
Mr Miranda had argued that the use
of Schedule 7 was disproportionate, as
he was engaged in “responsible
journalism” in the public interest, and
that his detention was a contravention
of his rights under Article 10 of the
European Convention on Human
Rights.
carefully considers the impact of these
recommended changes,” she said, call-
ing them “out of line with other devel-
oped economies”.
The committee recommended an
annual immigration skills charge of
£1,000 to fund training for local work-
ers, raising £250m that would be chan-
nelled back to employers.
It also recommended the minimum
salary threshold be raised to £30,000 a
year from £20,800, but with this change
phased in to avoid harming staffing
levels for teachers and nurses, where
pay is often below that level.
Third-party contracting — used
widely by IT companies — should be
treated as a separate category within
intra-company transfers and should
require that workers are paid at least
£41,500 a year. Sir David said existing
arrangements, while beneficial to
employers, were “tilted against British
workers”.
NHS dispute
Junior doctors suspend next
strike after talks ‘progress’
GONZALO VIÑA
Junior doctors have suspended a sec-
ond round of industrial action sched-
uled for next week following signs of
“early progress” in talks with the gov-
ernment over a new contract.
The decision to call off the action,
planned for January 26-28, comes after
Jeremy Hunt, health secretary, urged
the doctors to resume negotiations. A
day of strikes last week over the planned
new contract saw doctors mount picket
lines outside England’s hospitals for the
first time since the 1970s.
The British Medical Association said
yesterday: “We are announcing this
[decision] today in order to give trusts
as much notice as possible so as to avoid
disruption to patients.
“This decision is in line with our
stated aim to ensure a safe, fair contract
through negotiated agreement, if at all
possible.”
But it added that “significant
progress” needed to be made to avoid
England’s 45,000 junior doctors — all
those below consultant grade — going
out on a third planned strike on Febru-
ary 10, when full labour, including
Wednesday 20 January 2016
Transport projects
MPs raise
concerns over
valuation of
public assets
GILL PLIMMER
The government’s sale of a stake in
Eurostar for twice what its advisers
said the train company was worth
raises concerns about reliance on a
small group of expensive consultants, a
committee of MPs has said.
Early in 2015, the government’s 40 per
cent holding in the cross-Channel train
service was sold for “almost double” the
presale valuations of its financial advis-
ers UBS, the Commons public accounts
committee said. It sold for £757m.
“Although the sale was well handled,
the process provides further evidence
of the government’s tendency to under-
value public assets it is selling,” the
MPs said.
They noted that UBS also advised on
the sale of Royal Mail and High Speed 1.
MPs recommended the Treasury
“examine the underlying causes” of the
“repeated tendency” to undervalue
assets and use a wider pool of financial
advisers.
The Department for Transport’s
approach to evaluating the benefits and
economic impact of transport projects
was also criticised, including an “unac-
ceptable” two-year delay in publishing
its own evaluation of HS1, the first high-
speed railway line, which showed the
project was poor value for money.
This denied parliament the ability to
use “important information” when con-
sidering HS2 — the controversial new
high-speed railway line. The transport
department should develop a “robust
way” of evaluating the full economic
impact of its investments and publish all
evaluations “promptly” regardless of
their findings, the MPs said.
Meg Hillier, committee chair, said:
“The public’s stake in Eurostar was sold
for significantly more than valuations
had anticipated — but also significantly
lessthanthetotalinvestedbytaxpayers.
“We now also know, following publi-
cation of the government’s much
delayed report, that the costs of HS1 far
outweigh its economic benefits.
“Taken together, these facts raise seri-
ous questions about the government’s
approach to valuing public assets, as
well as its commitment to considering
the value for money of public spending
on such expensive projects.”
The HS1 report — produced by con-
sulting and engineering companies
Atkins and Aecom, and Frontier Eco-
nomics — found the project represented
a loss of up to £5.9bn over 60 years, not
including wider economic benefits.
This document could have been a
vital factor in assessing the merits of
HS2 if the Department for Transport
had not waited until October to publish
it, Ms Hillier said.
The Labour MP claimed this would do
nothing to reassure taxpayers who were
“rightly concerned” about how their
money was spent on huge public invest-
ments.
She went on: “It is deeply concerning
that work towards HS2 should have pro-
gressed without full and detailed con-
sideration of HS1.
“The government’s evaluation of HS1,
produced at the urging of this commit-
tee, could and arguably should have
been a key piece of evidence in scruti-
nising plans for HS2.”
emergency care cover, is due to be with-
drawn.
“Differences still exist between the
BMA and the government on key areas,
including the protection of patient
safety and doctors’ working lives, and
the recognition of unsocial hours,” the
BMA said.
Welcoming the BMA’s suspension, the
Department of Health said the strike
had been “unnecessary while talks are
ongoing”. However it stressed that, as
things stood, emergency care would still
be withdrawn in February.
It said: “The government and junior
doctors want to do the same thing by
improving patient care at weekends and
we look forward to further constructive
discussions”.
NHS trusts around England reported
that almost 3,500 non-urgent proce-
dures were postponed on the day of last
week’s industrial action.
Almost four in 10 of the junior doctors
who were meant to be on duty had
reported for work, according to NHS
England, although it later clarified that
the figure included those providing
urgent and emergency care who were
exempt from the strike action.
Wednesday 20 January 2016 ★ FINANCIAL TIMES 5
6 ★
Davos forum
Global economy hangs in delicate balance
World teeters between
recovery and third leg
of crisis, economists find
CHRIS GILES — DAVOS
The world economy is precariously
balanced between continued recovery
and a third leg of the global financial
crisis, according to leading economists
attending the World Economic Forum
in Davos.
The two sharply-contrasting out-
comes highlight the uncertainties sur-
rounding the global outlook in 2016
amid fears of a slowdown in China,
plunging commodity prices and high
levels of corporate US dollar denomi-
nated debt in emerging economies.
Economists said the instability
threatened to exacerbate the vulnera-
bility of households and companies,
which were already responding to dis-
ruptive technological changes.
The dilemma facing economists was
Alarm bells ring louder over US inflation
Absence of rising prices, oil’s
fall and market turmoil point
to delay in more rate increases
SAM FLEMING — WASHINGTON
ROBIN WIGGLESWORTH — NEW YORK
Even as the Federal Reserve was lifting
short-term interest rates last month,
several policymakers were expressing
misgivings about tightening in the
absence of inflation.
Since then alarm bells have rung
louder as measures of expected infla-
tion have sunk in the markets, alongside
a further slide in the oil price and volatil-
ity in global equities and bond prices.
Last week James Bullard, head of the
St Louis Federal Reserve, said falling
inflation expectations were “becoming
worrisome”, while Charles Evans, from
the Chicago Fed, added that the situa-
tion was “troubling”.
But it is far from clear how much
weight the Fed should be putting on
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demonstrated in the International Mon-
etary Fund’s latest update to its World
Economic Outlook.
While its central forecast is relatively
optimistic, with growth expected to
pick up modestly in 2016 and 2017,
it also reduced its growth forecasts
and acknowledged severe downside
risks.
Maurice Obstfeld, IMF chief econo-
mist, said financial markets, rocked by
volatility since the beginning of the year,
were “overreacting” but also acknowl-
edged “there was a difficult adjustment
ahead in emerging markets”.
Some of the big name economists in
the Swiss Alps this week are notably
pessimistic, thinking this adjustment
will be more difficult than the IMF cen-
tral forecast expects.
Noting “the third leg of the debt
supercycle does seem to be upon us”,
Professor Kenneth Rogoff of Harvard
University said: “Anyone who is still
telling the ‘This Time is Different’ story
for China has their head in the sand.”
Monetary policy. Expectations
these declines in expected inflation.
Gauging inflation expectations is a
fraught business, and many central
bankers and market practitioners ques-
tion whether the financial instruments
being seized upon by pessimists are a
useful measure of the outlook for prices.
“This is obviously something that
must be worrying them,” says Torsten
Slok, chief international economist at
Deutsche Bank. “That said, these finan-
cial instruments have relatively limited
predictive power when it comes to
actual inflation.”
Movements in market prices in recent
weeks have been striking. The 10-year
break-even rate — derived from com-
paring the yields of conventional and
inflation-linked US government debt —
fell to just 1.39 per cent on Friday, within
a whisker of the six-year low of 1.38 per
cent touched last September.
The five-year break-even rate is just
1.11 per cent, and the two-year is 0.45
per cent. The so-called five-year, five-
year break-even rate — a popular meas-
ure with officials because of its long-
FINANCIAL TIMES
INTERNATIONAL
Richard Baldwin, professor of inter-
national economics at the Graduate
Institute, Geneva said: “There are a
number of vulnerabilities that individu-
ally would suggest problems and slow
downs, not a crisis with a capital ‘C’. But
these vulnerabilities could merge into a
new Crisis”.
According to Nobel laureate professor
‘Anyone who is still
telling the “This Time is
Different” story for China
has their head in the sand’
Michael Spence of the Stern School of
Business, New York University: “It is a
fragile and deteriorating situation glo-
bally with little in the way of effective
counter measures.”
Professor Bob Shiller of Yale Univer-
sity, also a Nobel laureate, warned that
the recent falls in financial markets had
special significance.
term nature — gauges market pricing of
five-year inflation starting in five years.
It has slipped to 1.95 per cent, which
is close to the record 1.92 per cent
touched last year. The long-term aver-
age is 2.84 per cent.
Some analysts say the Fed will have to
take the price swings on board. The Fed’s
‘The downside risk of
tightening too soon is
much greater than the risk
of moving more slowly’
credibility hinges on its ability to steer
inflation towards its 2 per cent target.
The current rate is 0.5 per cent.
If expectations of financial players
and the general public are for much
lower price growth, that credibility
could be damaged as low inflation out-
looks become a self-fulfilling prophecy.
John Brady, managing director at RJ
O’Brien, a brokerage, expects the down-
ward move in the five-year, five-year
Digital revolution
Facebook’s Sandberg warns Europe not to impede innovation
MURAD AHMED — DAVOS
Facebook’s Sheryl Sandberg is set to
urge Europe to create a “pro-innova-
tion” environment unhampered by
“poorly designed regulation”, in the
latest warning from Silicon Valley that
the continent is cutting itself off from
the digital revolution.
Speaking to the Financial Times ahead
of the annual gathering of the world’s
political and business elite at the World
Economic Forum in Davos, Ms Sand-
berg urged policymakers to avoid
impeding “progress”, such as by adopt-
ing laws that block Silicon Valley’s inno-
vations.
“Well-designed regulation can unlock
new opportunities and help small busi-
nesses and industries to scale,” she said.
“Poorly designed regulation can do the
opposite.”
The chief operating officer of the
social networking company and one of
the world’s most influential female
executives, said that fears about new
technologies disrupting established
industries and destroying livelihoods
were misguided.
Instead, Ms Sandberg argued that
“There is more than the usual
salience to this event and . . . a
substantial risk of further such drops,”
he said.
While recognising the possibility of
something worse, an equal-sized group
of economists take comfort from the
still-healthy rate of Chinese growth.
Expecting a further slowdown in the
Chinese rate of expansion, Paul Sheard,
chief economist of Standard & Poor’s,
the rating agency, said an outcome of
6.3 per cent Chinese growth this year
would still be positive.
“Let’s not get carried away here,” Mr
Sheard said. “6.3 per cent real GDP
growth this year is the equivalent of
about 14 per cent growth in 2009, in
terms of the size of the increment to glo-
bal GDP.”
Another Nobel laureate, Professor
Christopher Pissarides of the London
School of Economics, said the fact that
US interest rate rises had been tele-
graphed for so long should help.
Meanwhile, China “is still growing
rate to help deter the Fed from moving
too aggressively in raising interest rates.
If inflation expectations “grind lower
and become unmoored then that’s a
problem”, he adds.
While the Fed has signalled investors
should expect four rate rises this
year, traders are not expecting another
move until well into the second half
of the year amid the turmoil in global
markets and doubts about China’s eco-
nomic stability.
However, research from the Fed itself
argues for caution in interpreting mar-
ket movements. A paper last week from
the Atlanta Fed found that, despite the
worrying signals, long-term expecta-
tions remain “stable and anchored”,
according to its models.
A separate report by the San Fran-
cisco Fed in September suggested that,
because of the idiosyncratic factors that
affect prices, financial markets provide
“little additional useful forward-looking
information about inflation”. It found
that market-based inflation expecta-
tions were less accurate in predicting
such “innovation can power economic
growth if we create the right climate for
it to flourish”.
Ms Sandberg’s intervention comes as
the global march of Silicon Valley com-
panies has begun to face serious resist-
ance in Europe over the past two years.
Sparked by concerns over widespread
US internet surveillance, tax avoidance
and commercial dominance, European
authorities made a concerted effort to
rein in the power and reach of leading
US tech companies.
Some US leaders, including President
Barack Obama, have described the
efforts as “tech protectionism” designed
to curb the threat that digital upstarts
pose to the continent’s established com-
panies.
Ms Sandberg will also call for urgent
completion of a transatlantic data shar-
ing agreement called “Safe Harbour”. In
December, the European Court of Jus-
tice invalidated the previous US-EU
pact which had lasted for 15 years. The
pact allowed American companies to
ship the personal information on Euro-
pean citizens wholesale back to the US.
The ECJ made its decision after Max
Schrems, a 28-year-old Austrian law
reasonably well and the government
seems prepared to help the readjust-
ment to the slower growth rate”.
Professor Ian Goldin of Oxford uni-
versity, noted another reason not to
expect a worldwide slide back into
recession.
“The world economy is now much
more resilient than was the case in past
decades, due to the number of growth
engines. India is picking up, as China
slows, and both continue to grow at
rates which are unprecedented in the
advanced economies,” he said.
If the big picture for the global econ-
omy is teetering between divergent out-
comes, households and companies are
also struggling with the possibility of
even faster technological change.
Professor Ned Phelps of Columbia
University and another Nobel Prize
winner, said: “Fears that new technolo-
gies may further upset advanced econo-
mies seem not yet to threaten business
confidence, but they are a cause for
worry.”
High levels of
corporate
US dollar
denominated
debt in
emerging
economies, such
as Brazil,
pictured left, are
adding to
uncertainty
surrounding the
global economic
outlook in 2016
Dado Galdieri/Bloomberg
actual inflation than surveys of profes-
sional forecasters.
Swings in financial instruments
changes reflect factors beyond inves-
tors’ inflation outlooks, including a risk
premium to compensate investors for
inflation uncertainty, changes in liquid-
ity and animal spirits that shift prices
for hard-to-pin-down reasons.
A particular reason for not putting too
much weight on the five-year, five-year
rate is that this has been heavily corre-
lated with movements in the oil price —
something that seems odd given oil
price movements should affect only
shorter-term inflation readings.
Angel Ubide, a senior fellow at the
Peterson Institute for International Eco-
nomics, says Fed policymakers should
wait for the oil price to settle before try-
ing to draw conclusions about inflation
expectations. Mr Brady says the Fed
cannot ignore the downward drift of the
various indicators. “It’s going to mute
the hawks. The downside risk of tight-
ening too soon is much greater than the
risk of moving more slowly.”
student, made a complaint against Face-
book in Ireland, where the social net-
working company has its European
base. The court accepted his argument
that letting so much data flow to the US
has exposed Europeans to American
spying.
US and EU politicians are negotiating
a new pact, but talks remain deadlocked
as Europeans seek further assurances
over how data will be used. The decision
has left US technology companies trying
to overhaul their transatlantic opera-
tions and uncertainty over whether they
can handle personal data within the law.
One central theme of this year’s WEF
Sheryl Sandberg: ‘Well-designed
regulation can unlock opportunities’
Wednesday 20 January 2016
Work trends
Emerging
markets to
fuel increase
in global
joblessness
SARAH O’CONNOR
EMPLOYMENT CORRESPONDENT
The number of jobless people in the
world is set to rise this year, as prob-
lems in emerging markets prevent the
global unemployment rate from
returning to pre-crisis levels.
The International Labour Organisation,
a UN agency, forecasts that the number
of unemployed people in emerging and
developing countries will increase by
4.8m in the next two years.
In particular, rising jobless numbers
in China, Brazil, Russia and elsewhere
will offset improvements in the US and
Europe, it says. The ILO’s employment
report warns such problems will hold
back the expansion of the middle class
and risk fuelling social discontent.
“The significant slowdown in emerg-
ing economies coupled with a sharp
decline in commodity prices is having a
dramatic effect on the world of work,”
Guy Ryder, the ILO’s director-general,
said.
The rise in the world’s jobless from
197m in 2015 to 199m this year, would
keep 2016’s global rate at 5.8 per cent —
the same as the last two years — because
of population growth.
The global unemployment rate
peaked at 6.2 per cent in 2009 as the
financial crisis cost millions of workers
their jobs. It has yet to return to its pre-
crisis low of 5.5 per cent in 2007.
The ILO’s figures come as the Interna-
tional Monetary Fund predicts a grad-
ual but relatively fragile improvement
in world economic growth from 3.1 per
cent in 2015 to 3.4 per cent this year.
The ILO forecasts significant rises in
unemployment in Brazil, Russia and
South Africa will have knock-on effects
on their respective regions “as spillovers
from migration, reductions in remit-
tances and slower earnings growth
affect neighbouring economies.”
Unemployment in China will nudge
upwards from 4.6 per cent last year to
4.7 per cent this year, according to the
forecasts. The agency also expects job-
lessness to rise in some Arab states.
But other countries appear to be on a
steadily improving trend. Unemploy-
ment in Japan, already among the low-
est in the world, is forecast to fall over
the next two years, from 3.3 per cent on
average last year to 3.1 per cent in 2017.
In the US the rate is forecast to fall
from 5.3 to 4.7 per cent, on a par with
pre-crisis levels — although a smaller
proportion of the population is now par-
ticipating in the country’s labour force.
Prospects for workers in Europe, hit
hard by the financial crisis and ensuing
sovereign debt crisis, also appear to be
brightening gradually. Unemployment
in the European Union is set to decline
from 9.4 to 9.1 per cent by 2017.
However, unemployment will remain
higher in 2017 than it was before the cri-
sis in all parts of Europe except Ger-
many and the UK. The ILO also pointed
out that the recent employment recov-
ery in Europe had come “at the expense
of job quality” with part-time and tem-
porary employment accounting for a
higher-than-usual share of new jobs.
“Many working women and men are
having to accept low paid jobs, both in
emerging and developing economies
and also, increasingly, in developed
countries,” Mr Ryder said.
is the “fourth industrial revolution”,
referring to how technological break-
throughs such as artificial intelligence
and advanced robotics are expected to
transform global industry. It is argued
such advances will have the transforma-
tive effect that steam power, electricity
and mass computing had on global
industry in previous centuries.
“Every industrial revolution has been
challenging for the world, and every one
has led to growth and progress,” said Ms
Sandberg. “Europe is positioned to lead,
with highly developed knowledge econ-
omies and a world-class research com-
munity. It also has the ability to move as
a large, single market. When Europe
makes innovation a priority, it can capi-
talise.”
Other US tech leaders in Davos
include Travis Kalanick, Uber chief
executive, Satya Nadella, Microsoft
chief executive, and Meg Whitman,
Hewlett-Packard Enterprise chief exec-
utive. Privately, tech executives said
they are bracing themselves for a hostile
reception from those global business
leaders who believe they are undermin-
ing established industries.
Digital divide page 13
Wednesday 20 January 2016
Beijing struggles
to meet needs
of middle-class
consumers
President seeks supply-side revolution
to cushion decline of heavy industry
TOM MITCHELL — BEIJING
At the outset of his presidency, Xi Jin-
ping billed himself as a transformative
leader in the mould of Deng Xiaoping,
the Chinese strongman who set the
country’s economic rise in motion in the
1980s. Now Mr Xi is turning to two more
political giants of that decade — Ronald
Reagan and Margaret Thatcher — for
inspiration as he seeks a “supply-side”
revolution for China’s economy.
Like the late US president and UK
prime minister, Mr Xi and Li Keqiang,
his premier, want to reduce taxes and
red tape for businesses as they seek to
cushion the decline of heavy industry
with the rise of the consumer and serv-
ice sectors.
Yesterday China’s National Bureau of
Statistics reported further progress in
this direction as it unveiled 2015 eco-
nomic growth of 6.9 per cent, in line
with the government’s full-year target.
Chinese analysts and government
officials say the emphasis on supply-
side reforms stems from the conviction
that the economy is failing to meet the
new demands of middle-class consum-
ers — and also a recognition that the
country’s large debt burden has reduced
its capacity for additional demand-side
stimulus. “It’s not that Chinese consum-
ers don’t have purchasing power,” says
Cao Heping, an economics professor at
Peking University. “China just hasn’t
produced the products that are suitable
for its own consumers.”
Such products range from education
and healthcare services to fancy
Japanese spray toilets that many
Chinese now go abroad to acquire.
According to the China Tourism Acad-
emy, Chinese tourists were expected to
spend Rmb1.1tn ($167bn) overseas last
year — equivalent to 1.6 per cent of gross
domestic product.
If only more of this demand could be
met at home by an economy that has
traditionally been better at producing
more coal, steel and flats than it needs,
officials argue, future growth would
receive a huge boost.
“We should retune the supply side of
the economy [so] the products, the
services produced can meet changed
demand,” a senior Chinese official said
last month. “There’s increasingly a reali-
sation that there’s a limit to how much
demand-side policy that you can use.”
However, supply-side reforms
with Chinese characteristics differ
from those implemented by Reagan
and Thatcher in important respects.
While Beijing promises greater
tolerance for private sector
companies and foreign inves-
tors in some areas of the econ-
omy, there is no appetite for
wholesale privatisations in
areas traditionally domi-
nated by the state. Recent
shipping and rail restructur-
ings amounted to little more
than a reshuffling of assets
from one state entity to another.
“We will have some tax reduc-
tions to reduce the burdens that
firms face but we will not have the
kind of privatisations that [the UK]
★ FINANCIAL TIMES
CHINA ECONOMY
Slowing down
China GDP growth: real v nominal
Annual % growth
Nominal
Real
1990 92 94 96
Real GDP growth by sector
Annual % growth
Industry (including construction)
Services
1990 95 2000
Sources: National Bureau of Statistics; CEIC
had,” the official added. “We will have
deregulation [so] more Chinese
and foreign firms can enter into dif-
ferent sectors.”
While there is no denying the
dynamism of the consumer and
service sectors, many domi-
nated by private and foreign
enterprise, the government has
not traditionally been willing
to take decisive action to cut
industrial overcapacity.
“Mergers and acquisitions
rather than bankruptcy and
liquidation would be the
[state’s] preferred ap-
Blow: a steelworker in
east China. Production
of steel fell in 2015 for
the first time in 25 years
98 2000 02 04 06
China key activity indicators
Annual % growth
20
Fixed-asset investment
15
10
Retail sales
5 10
Agriculture Industrial production
0 5
05 10 15 2013
proach to ‘zombie companies’,” said Tim
Condon, ING chief Asia economist.
“The industrial restructuring debate
frequently pits Anglo-Saxon restructur-
ing, where costs are recognised up front,
against Japan-style restructuring where
concessions and debt relief spread the
costs over time. We see the [Chinese]
authorities adopting an in-between
approach.”
Andrew Polk, China economist for
research institute the Conference
Board, argues Beijing has promised to
tackle industrial overcapacity for years
with little effect. “My view with supply-
side reform is that it is the same old bag
of tricks by a new name. Unless they
have made a decision that they cannot
push this off any longer and are finally
willing to accept much lower near-term
growth, then I don’t think there is
40
30
20
10
0
08 10 12 14 15
20
20
15
14 15
any reason to expect this new name
for an old programme will be any more
successful than the old names.”
Other analysts say the current down-
turn for China’s heavy industries is so
savage that the government simply can-
not save them even if it wants to. Tho-
mas Gatley and Rosealea Yao at Gavekal
Dragonomics, a Beijing consultancy, call
2015 a “year of historic declines in
China’s output of coal and steel” as steep
price falls rendered production “eco-
nomically irrational”. Yesterday, the
NBS reported that China’s steel indus-
try, the world’s largest, recorded a year-
on-year production decline last year for
the first time in a quarter of a century.
Editorial Comment page 12
Martin Wolf page 13; Lex page 16
Inside Business page 18
China’s tremors page 20
7
Growth
Steel’s contraction
underlines GDP fall
Chinese steel production and
power generation contracted last
year for the first time in at least 25
years, according to official statistics
released yesterday, as the economy
grew at its slowest pace since 1990.
The data come as fears about
China’s economy shake global
markets and capital leaves the
country at an unprecedented pace.
Investors are eager for clues about
whether slides in China’s equity
market and currency depreciation
at the start of this year were a sign
of distress in the real economy, or
whether policymakers can engineer
a gradual slowdown that avoids
financial crisis and social instability.
Fourth-quarter gross domestic
product growth came in at an
inflation-adjusted 6.8 per cent,
according to the National Bureau of
Statistics, placing the full-year
figure at 6.9 per cent, in line with
Beijing’s target of “around 7 per
cent” for the year and with
expectations. The 2016 growth
target is 6.5 per cent.
Meanwhile steel output last year
fell 2.3 per cent to 802.8m tonnes,
while power generation declined
0.2 per cent. Coal production fell for
the second consecutive year.
“[Steel] demand is down even
more,” said Sebastian Lewis at
Platts Metals in Shanghai. “With
prices where they are now, some
mills have exited the market or
pulled back production.”
This week, the China Iron & Steel
Association said domestic steel
consumption would fall 5 per cent
in 2016 after declining 4.6 per cent
to 705m tonnes last year. Cisa said
falling demand was now the norm in
sectors from machinery, property
and shipbuilding, with a few
exceptions such as the car industry.
“Last year was the turning point
for these industries,” said Thomas
Gatley at Gavekal Dragonomics,
who predicts a further 5 per cent
fall in steel output this year.
Resilient growth in the emerging
services sector eased a slowdown in
manufacturing and construction.
Additional reporting by Christian
Shepherd and Ma Nan
8 ★
Iran’s outdated banks
hamper recovery drive
Sanctions have been lifted
but inward investment is
stalling for want of reform
NAJMEH BOZORGMEHR — TEHRAN
Companies across the world are lining
up to explore opportunities in Iran, and
Tehran is keen to lure them, after a
range of international sanctions was
lifted this weekend. But if businesspeo-
ple and politicians are ready, the coun-
try’s banks are not.
“Our banking system, like our econ-
omy, has been isolated and has no idea
what has happened in the world over
the past decades,” says one senior
Tehran banker.
Iran’s economy is in dire need of refi-
nancing. Years of sanctions imposed
over its nuclear programme, combined
with the populist policies of former pres-
ident Mahmoud Ahmadi-Nejad, have
left it with negative economic growth in
most years since 2011 and a youth unem-
ployment rateofabout25percent.
But analysts say the banking sector —
the main source of finance given the
country’s weak capital and debt mar-
kets — is the biggest hurdle to recovery.
Iran’s lenders, most of which are nomi-
nally private but affiliated to state bod-
ies, have long operated with low capital
adequacy requirements and poor regu-
latory and supervisory mechanisms.
They were further weakened by Mr
Ahmadi-Nejad, who forced them to pro-
vide cheap loans to small businesses and
the needy,andthesanctions.
While curbs were in place the banks
were largely able to hide their short-
comings. But with the country keen to
attract foreign investment and business
partnerships, observers are now sound-
ing the alarm over their ability to under-
pin business and economic growth.
Valiollah Seif, Iran’s central bank gov-
ernor, agrees the banks became “out-
dated” under the sanctions regime and
says two steps are needed. First, they
must be reintegrated with foreign banks.
Second,regulationandcompliancemust
be brought into line with international
standards “by measures like fully imple-
menting the pillars [of the Basel accord
on bank safetyrequirements].”
Tim Fox, head of research and
chief economist at Emirates NBD, the
Dubai-based bank, said recently that
non-performing loans made up about
14 per cent of the total loan books of Ira-
nian banks, but he estimated that this
was “probably understated”.
He said this was because the account-
ing standards of Iranian banks were far
behind their western rivals, as they still
used Basel I rules for risk-management
and capital requirements, while US and
European lenders were shifting to the
third generation of these standards.
Iran’s bankers are not optimistic
about a swift resumption of business
with leading foreign banks because,
although a series of banking restrictions
has now been lifted, continuation of US
sanctions in non-nuclear areas has
made European banks wary of conduct-
ing new business in Iran.
“In the beginning, second and third-
tier European banks will work with us,”
says the Tehran banker.
Others say reform is needed before
any big foreign banks can join forces
with Iranian counterparts.
“Foreign banks are not obliged to risk
their reputation by working with those
Regulating reincarnation China starts database of living Buddhas
LUCY HORNBY
China’s government has launched an
online database of Tibetan “living Bud-
dhas” as part of what critics view as a
broader struggle to control the legacy of
the exiled Dalai Lama.
The database, listing 870 govern-
ment-certified reincarnations in main-
land China, was unveiled on Monday by
the Buddhist Association of China,
which operates under the auspices of
the ruling Communist party.
The list is an effort to “regulate rein-
carnation issues for living Buddhas”,
said the Xinhua state news agency, using
a Chinese term for reincarnated lamas,
known as trulku in Tibetan.
The various branches of Tibetan Bud-
dhism recognise thousands of lineages
of reincarnated lamas.
The trigger for the database was a cer-
emony last year in Hong Kong in which a
Chinese celebrity appeared to endorse
Wu Darong, a Han Chinese from Fujian
province who has declared himself a liv-
ing Buddha. That episode enjoyed the
rare distinction of horrifying Tibetans
and the officially atheist Beijing govern-
ment, which is wary of the influence of
Finance. Search for funds
State of the economy
Iran growth and inflation
Annual % change
Real GDP growth Inflation
10 Estimate 40
5 30
0 20
-5
-10
2005 10 15 16
Sources: Bloomberg; IMF; BIS; Unctad
Iranian banks which lack efficient com-
pliance departments,” says Parviz
Aghili, chief executive of the privately
owned Middle East Bank. “I believe in
shock therapy so that banks can realise
they are in bad condition after they see
their facts and figures under Basel III.”
Mr Aghili cited anti-money launder-
ing rules, corporate governance, risk-
management, debt capital markets and
bankruptcy laws as areas of Iranian law
that would deter westernbankers.
Iranian economists argue that instead
of looking to banks to provide the bulk
of business financing, with loan rates as
high as 35 per cent, the government
should promote the debt market by
‘Foreign investors will not
come easily. If we don’t make
reforms, we’ll be in the same
situation in five years’ time’
self-proclaimed holy men of any stripe.
After decades of revolution, dislocation
and a materialist boom, newly prosper-
ous Chinese are flocking to celebrity
Tibetan lamas and other Buddhist fig-
ures in search of spiritual fulfilment.
Many give large donations.
Beijing says the searchable database
will prevent “fake living Buddhas” from
cheating believers and undermining the
reputation of Tibetan Buddhism. But
exile groups decried what they say is
further interference by the Chinese
state in the intricacies of Tibetan culture
China’s attempts to control Buddhism have been called ‘clunky’ — Fred Dufour/Getty
FINANCIAL TIMES
INTERNATIONAL
Loans to Iran by foreign banks Foreign direct investment
$bn
25
20
15
10
10 5 1
0 0
2005 10 15
issuing more bonds and sukuks, or
Islamic bonds. Authorities have indi-
cated an interest in issuing eurobonds.
“Why should we issue foreign banks’
junk bonds at rates as high as 8 per cent
now? We should start with issuing new
bonds ourselves,” says the banker.
But others say Tehran needs to under-
take significant reforms and upgrade its
credit rating before resorting to interna-
tional debt markets. Iran’s central bank
has tried to enforce Basel III recommen-
dations on bank safety requirements,
and has put pressure on banks to in-
crease capital by selling property. But
progress has been slow, and bankers say
Iran must now move to firm regulation,
supervisionandriskmanagement.
They argue that conforming to Basel
III would improve banks’ ability to
assess credit risk at a time when the
country’s non-performing loans consti-
tute about a quarter of all lending,
according to unofficial data. The meas-
ures would also curb the practice of risk-
and religion. Free Tibet, the campaign
group in London, said: “[T]his develop-
ment is completely consistent with Bei-
jing’s current strategy of using ‘protec-
tion’ of Tibetan Buddhism as a cloak for
more intensive and more intrusive con-
trol of religious life and institutions.”
Reincarnation has turned into an
unlikely battlefield since the 80-year-
old Dalai Lama, who enjoys worldwide
popularity and deep devotion in Tibet,
said he might not reincarnate to prevent
Beijing from attempting to control
his successor. Communist officials
Heavy load to bear: observers
are sounding the alarm over
the state of Iran’s banks and
their ability to underpin
business and economic
growth — Thomas Koehler/Getty Images
Inward flow ($bn)
5 matic crisis with Russia, which is allied
4
3 tive to behave well until the [nuclear]
2 upon,” he said. “What we see as we cross
0
2004 10 14
ing deposits by making direct invest-
ments in areas such as the property
market, shopping centres and industry.
The banking system also needs to
tighten supervision and boost transpar-
ency and disclosure. Some banks are
enmeshed in multibillion-dollar fraud
cases rooted in the poor regulatory and
supervisory framework, outdated
accounting systems and scarcity of well-
trainedauditors.
When bank staff met for courses run
by the Middle East Bank in Tehran to
learn more about capital adequacy, risk
and international regulatory standards,
they were told difficult days lay ahead.
“Foreign investors will not come eas-
ily. If we don’t make reforms, we will be
in the same situation in five years’ time,”
said Morteza Bina, a senior risk man-
ager at the bank. “If we had observed
international standards, our banking
crisis would have been less severe.”
Additional reporting by Martin Arnold in
London
then declared that he must be reborn.
Beijing insists it has an “undeniable
endorsement right over the reincarna-
tion system”. It has issued certificates to
“living Buddhas” since 2010.
Nicholas Bequelin, east Asia director
of Amnesty International, said: “What
motivates the government in imposing
new controls on the identification of liv-
ing Buddhas is to prepare the ground for
making itself the authority on the issue
of who the next Dalai Lama will be.”
Within Tibetan Buddhism, traditions
vary considerably on how a lineage is
recognised and maintained. The poten-
tial for abuse of power in choosing the
successor to a prominent lama — as well
as more recent corruption in the sale of
certificates issued by the government —
has led some Tibetan reformists to pro-
pose abolishing the reincarnation sys-
tem, says Robbie Barnett, a Tibetan
scholar at Columbia University.
He said Beijing’s attempts to control
reincarnated legacies were “clunky and
inappropriate”. “It’s like herding cats or
legislating happiness,” he said. These
are not legalistic practices. They are
community traditions.”
Additional reporting by Luna Lin
Security
Israel fears rise in cyber
attacks after nuclear deal
JOHN REED — TEL AVIV
A senior Israeli military figure pre-
dicted the world would see a new wave
of cyber attacks in 2016 because nation
states with the capacity to wreak havoc
on computer networks would take
“gloves off” now that the nuclear agree-
ment with Iran was operating.
December saw large cyber attacks on
power plants in Ukraine and banks in
Turkey that could be a foretaste of more
to come this year, said the commander
of the Israeli military unit that handles
communications, computing and cyber
defence.
“In 2015, all the actors were trying to
behave well, be good boys, because the
global political system was very concen-
trated on the efforts to reach an arrange-
ment on the Iranian issue,” said Major
General Uzi Moskovitz, head of the
Israel Defense Forces’ C4I Corps, in a
rare interview.
“So the Iranians had no incentive to
impose attack waves on the US banking
system [or] to impose any attacks on oil
and natural gas companies in the Gulf,
as they did in 2012.”
Cyber-security experts and Israeli
officials blame hackers acting on behalf
of Iran for using malicious software, or
malware, to infect computers at Saudi
Aramco, the oil group, and RasGas, the
Qatari gas company, in August 2012. A
number of US banks came under cyber
attack the following month.
However, Russia, China and other
countries are also active. Last month
Ukraine, which is in conflict with pro-
Russian separatists in its east, faced a
cyber attack on power companies that
caused blackouts in hundreds of thou-
sands of homes and businesses during
sub-zero weather. Russia is widely sus-
pected to have been behind the attack.
Turkish banks also faced a series of
cyber attacks over Christmas that dis-
rupted their service. Turkey is in a diplo-
with Bashar al-Assad’s government and
Iran in the war in Syria, in which Ankara
supportsanti-governmentrebels.
“Each and every player had an incen-
negotiation . . . was to be decided
from 2015 to 2015-2016 is . . . a highly
targeted attack in Ukraine and Turkey.”
North Africa
Libya rival factions announce
creation of unity government
HEBA SALEH — CAIRO
JAMES POLITI — ROME
Rival Libyan factions meeting in Tuni-
sia announced the formation of a
national unity government yesterday
aimed at ending the feud between two
rival administrations that has allowed
Isis militants to gain a foothold in the
north African oil and gas producer.
The announcement is part of the UN-
brokered peace process that saw the
establishment of a nine-member presi-
dential council last month with the
power to appoint a new government.
The 32 cabinet members include rep-
resentatives from the two rival parlia-
ments based in the country’s east and
west. Fayez Sarraj, a politician from the
east who heads the council, will act as
prime minister designate. Al-Aref al-
Khoga, a former interior minister from
the west, takes the same role in the new
team, while Khaled Nejm, also from the
east, takes the information portfolio.
Mahdi al-Barghathi, an eastern Libya
army commander, was named defence
minister.
Western powers hope the new govern-
ment will end the chaos that has gripped
Libya since the collapse of the Muam-
mer Gaddafi dictatorship in 2011 and
lead the fight against Isis, which has
taken advantage of the country’s power
vacuum to gain its largest presence out-
side its Syria and Iraq strongholds.
Libya has been split between two gov-
ernments since 2014, with an Islamist-
leaning administration in Tripoli, the
capital, and an internationally recog-
nised authority in Tubruq in the east,
with each backed by separate militia.
The unity government has 10 days to
win the endorsement of the Tubruq par-
liament.
Martin Kobler, UN envoy to Libya,
tweeted his congratulations to the nego-
tiators yesterday.
Senior officials from western, Middle
Eastern and north African countries
meeting in Rome to discuss Libya also
cautiously welcomed the deal. “This is a
crucial step even if the picture remains
fragile,” Paolo Gentiloni, Italy’s foreign
minister, said.
Pasquale Salzano, executive vice-
president for government affairs at Eni,
Italy’s biggest oil and gas company,
Wednesday 20 January 2016
The general declined to say who he
thought was responsible for either
attack. However, he added: “I think that
some of the players in the cyber-kinetic
arena — this is my opinion — have
decided to take their gloves off.”
Israel describes itself as one of a few
countries alongside the US, Germany,
the UK and Iran that are prioritising the
emerging “cyber-domain” both mili-
tarily and in the private sector.
The IDF is setting up a new cyber com-
mand that will put cyber warfare on an
equal footing with combat in air, land,
sea and space. The cyber-defence part of
the unit began operating on January 1
and would be fully operational in about
18months,MajGen Moskovitzsaid.
Israel’s military is acknowledged as
having worked with the US to develop
the Stuxnet worm that infiltrated com-
puters running Iranian nuclear centri-
fuges in 2009-10, and the Flame that hit
Iranian and other targets in 2012. It has
never admitted involvement in either.
The general compared the current
unregulated state of cyber warfare, with
no norms or treaties in place on the
acceptable use of force or type of weap-
ons, to the early days of aerial warfare.
“In the cyber-kinetic domain we are
still in the phase of carpet bombings,” he
said. “First of all, this is so easy; second,
there aren’t any air forces or pilots or
airfields that would identify the
attacker’s identity.”
He expected the status quo to prevail
for a few years, but that talks were
needed on “permissible damage to a
nation”, adding: “The nature, depth and
level of collateral damage or deliberate
damage to the civilian domain will have
tobediscussed.”
Unregulated: ‘In the cyber-kinetic
domain we are carpet bombing’
which has significant operations in
Libya, tweeted: “It’s an important step
to have a new government in Libya. Now
it’s essential to have a responsible vote
in parliament as soon as possible.”
Western countries have said they are
prepared to offer military support to the
new government to tackle Isis if asked to
do so. But leaders are considering
whether it might be necessary to act
without Libyan consent to contain Isis
amid escalating violence, say analysts.
Earlier this month 47 people were
killed when militants slammed a truck
laden with explosives into the gates of a
military camp in the city of Zliten, and
Libya’s National Oil Company appealed
for help after Isis attacked a number of
key oil terminals.
But despite yesterday’s deal, signifi-
cant divisions between the Libyan fac-
tions persist and analysts say the new
government faces formidable chal-
‘This is a crucial step
even if the picture
remains fragile’
Paolo Gentiloni, Italian minister
lenges, not least whether it will be able
to base itself in Tripoli or will end up as a
third government, further deepening
Libya’s fissures.
“The hope is that the government will
be based in Tripoli, but I don’t think this
is for today or tomorrow,” said
Mohamed Eljarh, a Libyan analyst and
non-resident fellow of the Atlantic
Council. “There are still huge chal-
lenges,” he said, with two council mem-
bers refusing to sign the agreement.
Ali Gatrani, who represents some of
the forces that control eastern Libya,
walked out of Monday’s session after
opposing planned new military and
security arrangements. Analysts inter-
preted the move as a rejection of meas-
ures that would remove control of the
army from General Khalifa Haftar, who
leads the pro-Tubruq forces but who is
seen as a divisive figure opposed to
Islamists of all kinds.
Omar al-Aswad from Zintan in the
west also refused to endorse the govern-
ment, saying his region was not ade-
quately represented.
Wednesday 20 January 2016 ★ FINANCIAL TIMES 9

INTERNATIONAL

Russia Legal threat

Putin strongman urges crackdown on critics Top court to

Chechnya leader says
‘jackals’ should be given
psychiatric treatment
MAX SEDDON — MOSCOW
Chechnya’s strongman leader Ramzan
Kadyrov is appealing for a crackdown
on “jackals” and “enemies of the peo-
ple” who oppose Vladimir Putin in a
move seen as a threat of violence against
the Russian president’s critics.
In a column in the pro-government
newspaper Izvestia yesterday, Mr Kady-
rov said the government’s opposition
were “western lackeys” intent on
“destroying our country and undermin-
ing its constitutional order”. He sug-
gested forcing them to undergo psychi-
atric treatment in a Chechen village hos-
pital, echoing a common KGB punish-
ment for Soviet-era dissidents.
Currency collapse
Far from being dismissed as idle rhet-
oric, the comments sent shivers through
the opposition community and sparked
speculation about his intentions.
They also raised the spectre of the
murder of prominent Putin critic Boris
Nemtsov, a former deputy prime minis-
ter who was shot dead yards from the
Kremlin last February. Government
investigators have accused Ruslan
Mukhudinov, the driver of the leader of
a battalion loyal to Mr Kadyrov, of
organising the crime and arrested the
battalion’s deputy commander along-
side four other men they say carried out
the hit.
The investigation has since stalled,
with investigators unable to locate Mr
Mukhudinov or the commander, Ruslan
Geremeyev. Both men are believed to
have left Russia. Nemtsov’s allies say Mr
Putin, who awarded Mr Kadyrov a
medal a few days after the murder, is
unwilling or unable to pursue his killers.
Alexei Venediktov, a radio editor who
frequently clashes with Mr Kadyrov in
public and hired bodyguards after
Nemtsov’s murder, said on Monday he
would increase security at his station,
Ramzan Kadyrov:
his comments
raised the spectre
of the murder
of Putin critic
Boris Nemtsov
Ekho Moskvy, one of Russia’s few
remaining outlets for dissent.
Alexei Navalny, Russia’s most popular
opposition figure, said Mr Kadyrov was
attempting to muddy the waters around
Nemtsov’s murder in the run-up to its
anniversary next month.
Grigory Shvedov, editor of the Cauca-
sus-focused news portal Kavkazsky
Uzel, suggested Mr Kadyrov was
attempting to appear strong in the face
of a growing Islamic opposition to his
rule in Chechnya. The province fought
two brutal separatist wars against Mos-
cow and is prominently represented
among jihadi groups in Syria, as well as a
simmering domestic insurgency.
“There are people in Chechnya who
are not frightened any more,” he said.
“This is a way to show that he is what the
Kremlin needs.”
Mr Putin allows the 39-year-old Mr
Kadyrov to rule the war-torn, mostly
Muslim province in the northern Cauca-
sus with an iron fist in exchange for
absolute loyalty, 99 per cent electoral
returns and a campaign against radical
Islamist insurgents. Mr Kadyrov is often
addressed in Chechen as pakhckhakh, a
word for a king. He oversees more than
20,000 fighters known as the Kady-
rovtsy, who are theoretically police
but who in practice answer to him alone.
Recently, Mr Kadyrov has taken to the
airwaves and the internet, demanding
Russians swear fealty to him. His sup-
porters are promoting a “Kadyrov Is the
Pride of Russia” flash mob on social
media.
In December, he organised a mass
denunciation of a Chechen social
worker who criticised him on Whats-
App. Last week, a regional lawmaker in
Siberia apologised to Mr Kadyrov for
calling him “a disgrace to Russia” on
Facebook, later suggesting he had
received threats warning that he risked
sharing Nemtsov’s fate.
Over the weekend, Magomed Daudov,
chairman of the Chechen parliament,
posted a photo to Instagram of Mr Kady-
rov holding a sheepdog named Tarzan
on a leash. Mr Daudov, known as “Lord,”
said the dog was eager to “rip out the
throats” of prominent opponents.
hear challenge
to Obama’s
immigration
policy
BARNEY JOPSON — WASHINGTON
President Barack Obama’s immigra-
tion legacy will be decided at the
Supreme Court just as the presidential
election builds to a climax after justices
yesterday agreed to hear a challenge to
White House policy.
The top court’s move will add fuel to a
polarised national debate amid the anti-
immigrant rhetoric of Donald Trump,
the frontrunner for the Republican
presidential nomination.
The justices said they would review a
case that centres on some of the 11m
undocumented immigrants who are in
the US illegally but have in many cases
raised families and become integral to
the workforce.
Their ruling is expected by the end of

Azerbaijan sets capital controls as economic crisis grows
JACK FARCHY — MOSCOW
Azerbaijan is to impose a 20 per cent
tax on transactions to remove cash
from the country, as the oil-dependent
government tries to contain a currency
collapse that has triggered a wave of
public protests.
Baku’s imposition of capital controls is
one of the most extreme measures
taken so far by former Soviet countries
as the region grapples with an economic
crisis triggered by the plunge in oil
prices to 13-year lows.
The manat has tumbled by more than
a third since the central bank aban-
doned its peg to the dollar last month. In
the past week, the dramatic deteriora-
tion in the country’s economic condi-
tions has sparked half a dozen protests
in a country unaccustomed to wide-
spread public dissent.
The Caspian state has enjoyed an oil-
fuelled boom over the past two decades,
reshaping the Baku skyline and inspir-
ing grandiose projects such as hosting
the inaugural European Games last
year. Oil wealth has also cemented the
authoritarian rule of the Aliyev family —
first Heydar, who served as president
from 1993 to 2003, and now his son and
successor Ilham.
But the fall in oil prices is threatening
that model, with the World Bank pre-
dicting a sharp slowdown in growth to
just 0.8 per cent this year.
“President Aliyev is in uncharted ter-
ritory at the moment,” said Livia Paggi,
Central Asia and Caucasus analyst at
risk consultancy GPW. “The govern-
ment has been unable to stabilise the sit-
uation via conventional means. Now
they are trying to restore currency sta-
bility by killing foreign exchange trans-
actions.”
The wave of protests is unusual in a
country where the government toler-
ates little opposition. In Siyazan, a town
north of the capital, 55 protesters were
arrested last week. Further protests
were reported in other towns this week
in response to unemployment and ris-
ing prices, although the relatively afflu-
ent capital Baku has remained calm.
The government has in recent days
announced measures intended to ease
the impact of the manat’s fall, including
a VAT exemption for bread and flour
and raising pensions by 10 per cent.
“The fall in oil prices and the several
Cash queue: waves of currency devaluation in neigh-
people wait bouring countries has unfortunately
outside a bank caused panic and speculation in Azerba-
in Baku last ijan’s currency market,” Mr Aliyev said
week to at a meeting with his economic officials
withdraw funds on Monday. Comparing Azerbaijan to a
Aziz Karimov/Getty Images
family that had fallen on hard times, he
said the country would need to “stretch
its legs according to the size of its
clothes” — or live within its means.
The government is rewriting its
budget, which had been drawn up on
the basis of a $50 oil price, and Mr Aliyev
ordered a plan for privatisation of state
assets to be drawn up.
Thomas de Waal, an Azerbaijan
expert at the Carnegie Endowment for
International Peace, described the situ-
ation as a “perfect storm” for Baku and
said Mr Aliyev faced “the near-impossi-
ble task of how to buy off very different
groups of discontented citizens” despite
sharply lower oil prices.
Azerbaijan relies on oil and gas for 95
per cent of its exports, three-quarters of
government revenues and 40 per cent
of gross domestic product. The current
crisis is a case study in the perils of a
slow response to the fall in oil prices.
While Russia allowed the rouble to
float freely in November 2014, and
Kazakhstan followed suit in August last
year, Baku continued to insist that it
would be able to maintain the stability
of the manat right up until a few days
before December’s shock devaluation.
As a result, the central bank’s reserves
fell by more than two-thirds over the
course of last year, and currently stood
at about $5bn, central bank governor
Elman Rustamov told journalists yes-
terday, a level that analysts say provides
little room for manoeuvre. Last week it
ordered independent currency
exchange offices to close, creating a
black market in which the manat has
Azerbaijan’s real GDP
Annual % growth*
2008 10 12 14
* 2015 and 2016 are World Bank forecasts
Currency plunge
Against the dollar (rebased)
Azerbaijani manat
Kazakhstani tenge
Russian rouble
2014 15
Sources: IMF; World Bank; Bloomberg
traded above two to the dollar — half its
value of a month ago.
The imposition of capital controls is
unlikely to be welcomed by foreign
companies, although it was not clear
yesterday whether big investors in the
country, such as BP, which operates
Azerbaijan’s largest oilfield, would be
‘[Ministers] affected by the new regulation.
The possibility of capital controls has
are trying to been raised by other countries in the
restore region, but largely dismissed because of
concerns it would cause too much long-
currency term damage to the investment climate.
stability by Turkmenistan, which devalued its cur-
killing rency by 19 per cent last January — but
like Azerbaijan resisted further weak-
foreign ening — has also restricted the sale of
exchange foreign currencies in the past week.
Mr Rustamov said the government
transactions’ had considered a total ban on “move-
Livia Paggi, ment of foreign currency and capital”
analyst but rejected the idea.
June, a few months before the election,
and is likely to sharpen the contrast
between Democrats who sympathise
with undocumented immigrants and
Republicans who are hostile to them.
“The timing is very, very electric in
terms of the campaign,” said Doris
Meissner, a top immigration official in
the Bill Clinton administration who is
now a Migration Policy Institute fellow.
12
In a far-reaching move in 2014, Mr
10 Obama sought to sidestep Congress and
use his executive powers to remove the
8 deportation threat hanging over up to
5m illegal immigrants who are parents
6 of US citizens or legal residents.
But the move sparked fury from
4 opponents who accused the president of
imperial over-reach. A legal challenge
2 from a coalition of 26 Republican-lean-
0 ing states got the plan frozen and the
16 Supreme Court will now decide whether
Mr Obama is acting within the law.
Mr Trump has promised to deport all
11m illegal immigrants and described
some Mexican immigrants as “rapists”.
120
He has also called for the US to ban all
Muslims from entering the country.
His hardline positions have echoed
100 the anger of many conservative voters
and tapped into terrorism fears while
pushing other Republican candidates to
80 the right on immigration.
If the Supreme Court sides with Mr
Obama, the Republican nominee would
60 probably campaign hard to overturn the
president’s action, Ms Meissner pre-
40 dicted, but would risk alienating legal
immigrants and minority groups.
16 “People who can vote who are foreign-
born are very sensitive to what’s being
said about people from their own ethnic
group or people who are newly-arrived,
because it signals to them how candi-
dates feel about the way America is
changing,” she said.
In the Democratic race, Hillary Clin-
ton and Bernie Sanders have defended
Mr Obama’s plan and pledged to do even
more to shield undocumented immi-
grants from deportation.
If the Supreme Court handed a defeat
to Mr Obama, the Democratic nominee
would need to campaign on a plan to
“overcome the dashed expectations” of
families that would have benefited from
his move, Ms Meissner said.
Frank Sharry of America’s Voice, a
pro-immigration group, expressed opti-
mism Mr Obama’s policy would be
allowed to stand. “It is highly doubtful
the Supreme Court will paralyse basic
government functions by putting every
discretionary decision by every federal
agency at the mercy of state lawsuits.”

Press freedom Refugee crisis

Hungary’s media curbs point to possible future for Poland
ANDREW BYRNE — BUDAPEST
Attila Mong ended his Hungarian
broadcasting career with the flick of a
switch. Soon after announcing a
moment of silence on his public radio
programme in protest at new media
laws in December 2010, Mr Mong was
suspended. Weeks later, his contract
was not renewed and his editor was
also dismissed.
Mr Mong says he was a casualty of
media reforms that followed prime
minister Viktor Orban’s return to office
in 2010. The creation of a powerful
media regulator, the replacement of
journalists and a surge in dealmaking
involving politically connected busi-
nessmen have since transformed the
media landscape.
As EU officials examine the new
Polish government’s controversial over-
haul of its media legislation, analysts say
they should look to Budapest — the
inspiration for Warsaw’s reforms — for a
flavour of what may be to come.
“It was a kind of audio note. A signal
that this was an important moment not
just for journalists but also for Hun-
gary,” Mr Mong says of his protest. He
was speaking from Germany, where he
now works for Atlatszo.hu, an investiga-
tive news website, and Deutsche Welle,
the German broadcaster.
Among Mr Orban’s changes was the
creation of a politically appointed
media authority, now led by Monika
Karas, which oversees broadcast licens-
ing and has wide authority to censure
print, online and broadcast journalists
for what is deemed unbalanced or offen-
sive content. Its role in allocating radio
frequencies drew attention in 2011
when Klubradio, a popular liberal news
and talk radio station, lost its frequency.
Mr Orban’s government also
extended criminal defamation penal-
ties. Even though no journalists have
been imprisoned under these rules,
Amy Brouillette, director of the Euro-
pean Media Project at Central European
University, described them as “an
unused hammer”.
Mr Orban has defended his reforms as
necessary to correct liberal imbalances.
Even foes concede that political
appointments were common under his
Fidesz party’s socialist predecessors.
Zoltan Kovacs, government spokes-
man, argues that Hungary’s media are —
if anything — more diverse and less
inhibited than western counterparts
shackled by political correctness. As an
example, he points to the German
media’s alleged reticence in the face of
recent mass sexual assaults believed to
have been carried out by some migrants
in Cologne. “The signs of opinion distor-
Viktor Orban:
among his changes
was the creation
of a politically
appointed media
authority
tion you find in Germany, for instance —
as in the press coverage of Arabic immi-
grants’ attacks in Cologne — are
unknown in Hungary,” Mr Kovacs says.
But, like Mr Mong, other Hungarian
journalists say the Fidesz government
punishes providers of critical coverage.
Gergo Saling, former editor of news
website Origo.hu, said he was forced out
in 2014 when he published reports by
his colleague Andras Petho on the travel
expenses of a senior Fidesz minister.
An executive at Origo, then owned by
Magyar Telekom — a Deutsche Telekom
subsidiary — said Mr Saling left Origo by
mutual agreement and the decision was
motivated by changing news consump-
tion habits. Mr Petho, who also resigned,
disagrees: “I left because I knew that —
despite what they said — we were under
political pressure.”
International media watchdogs also
give Hungary poor marks. Freedom
House and Reporters Without Borders
rank its media independence 24th and
25th respectively out of 28 EU countries,
far behind neighbours Poland, the
Czech Republic and Slovakia.
Dunja Mijatovic, who oversees media
freedom at the Organisation for Secu-
rity and Co-operation in Europe, warns
that the media authority’s powers limit
media pluralism and “put the media at
risk of political control”. One of the gov-
ernment’s strongest levers of control
may be the purse. It has the ability to
direct a pot of public advertising money
to media controlled by a clique of busi-
nessmen, some with close ties to Fidesz.
Tony Barber page 13
German language teachers in demand
STEFAN WAGSTYL — BERLIN
German language teachers have been
given a 15 per cent pay rise as a surge of
new arrivals has filled immigrant
classes and raised fears of a shortage of
qualified instructors.
“This is a matter of supply and demand,
and demand is going up,” says Benjamin
Beckmann, a department chief at the
government’s migration office.
Germany welcomed more than 1.1m
refugees in 2015 — many from the Mid-
dle East — and expects hundreds of
thousands more this year. The govern-
ment finances up to 660 hours of lan-
guage study for each new arrival, pro-
vided by a range of schools, including
state institutions, international lan-
guage teaching companies, such as Berl-
itz, and small local teaching agencies.
The adult-only courses were launched
in 2005 for EU migrants and successful
asylum seekers. Seeking to head off con-
cerns that the new arrivals will fail to
integrate, Berlin has opened the classes
to recent refugees who are likely to
secure asylum, such as Syrians.
Student numbers are rising rapidly.
There were 185,000 last year, up from
94,000 in 2012. Mr Beckmann declined
to forecast how many would join the
courses this year. But the government
has roughly doubled the budget for inte-
gration courses this year to €559m,
which would finance 300,000 places.
The Public High Schools Association,
an organisation of state schools, says it is
expecting a doubling of demand, and so
a doubling of the number of teachers to
more than 20,000.
The government does not remunerate
teachers directly but pays the course
providers who hire their instructors on a
contract basis. But the government does
set minimum pay, and is raising this
from€20fora45-minutelessonto€23.
The migration office has an approved
list of 29,000 teachers, including 5,000
who joined last year. Anticipating possi-
ble staff shortages, the government has
eased entry procedures to allow a fur-
ther 2,000 to qualify this year.
There is a similar challenge in teach-
ing refugee children, with 200,000 to
250,000 expected to enter schools this
year, accroding to the German Teachers’
Association.
10 ★ FINANCIAL TIMES Wednesday 20 January 2016
Wednesday 20 January 2016
Leading companies are using online activity to determine credit ratings. The plan should help Beijing
increase lending, but a parallel effort to measure the social qualities of web users is raising privacy fears.
W
hen browsing the
internet in China, be
sure to avoid logging on
between 2am and 4am,
steer clear of websites
offering quick loans and beware of
changing your mobile phone handset
too often. A good rule of thumb is to
order curtains for your office, and when
shopping online, choose scuba gear over
photographic equipment.
The reason? All of these choices may
be affecting your credit rating. And your
credit rating, as determined by a
number of experimental algorithms
being tested by China’s largest internet
companies, may one day affect a lot
more than your ability to get a loan —
some believe it could determine your
access to health, education, employ-
ment and status as a “good” citizen.
The new rating systems are part of a
government-backed effort to increase
lending to hundreds of millions of Chi-
nese who want access to small business
loans or consumer credit, but have no
collateral or financial history.
To address this, companies offering
everything from business loans to credit
with retail stores are relying on “non-
traditional” indicators such as internet
search histories and mobile phone pur-
chases to help determine who is credit-
worthy. Private corporations admit they
can access the records of Chinese inter-
net users thanks to licences issued by
the central bank last year to develop
experimental credit ratings.
So far, eight licences have been issued
to companies ranging from Tencent and
Alibaba, two of the biggest internet con-
glomerates, to Ping An Insurance, one of
China’s largest insurers.
These credit scores are becoming the
gateway not just to loans, but to an
increasingly wide range of non-financial
activity. A higher rating can give you
access to the fast lane in airport security,
swifter approval of foreign visas or even
help in adopting a pet.
A separate initiative by Beijing
intends to use algorithms on all this data
to rate not just citizens’ creditworthi-
ness, but their overall “honesty” and
“trustworthiness”, by as early as 2020.
So far, the government’s efforts are
largely theoretical. No one knows
exactly what the new models will look
like or what variables will be employed.
An opaque draft of the plan says the
‘In an authoritarian state,
there is no limit to what
they have access to, and
there is no law to protect
those that are harmed’
intention is to “use encouragement to
keep trust and constraints against
breaking trust as incentive mecha-
nisms,” and spells out the objective to
raise “the honest mentality and credit
levels of the entire society”.
Wang Zhicheng, a professor specialis-
ing in credit risk at Peking University’s
Guanghua School of Management, says
the project is borne out of a “crisis in
ethics” in today’s China. “People don’t
think that credit or integrity is impor-
tant,” he says. “That is what the
[broader state] system is intended to do
— raise the cost of unethical behaviour.”
However, he says, rating people on
their big data may not turn out to be
easy — China’s internet is rife with fake
data, profiles and transactions.
“China has a long way to go before it
actually assigns everyone a score. If it
wants to do that, it needs to work on the
accuracy of the data. At the moment it’s
‘garbage in, garbage out’.”
Lab rats
Critics say China’s internet is fast
becoming a laboratory where big data
meets big brother, where the march of
technology combined with profit-
driven private companies, authoritar-
ian politics and weak civil liberties is
creating a toxic cocktail. If unchecked,
the “social credit” system, according to
some, could be used to assign citizen-
ship scores to everyone based on “patri-
otic” criteria such as whether they buy
imported products, or the content of
their postings on social media.
Anne Stevenson-Yang, head of J Capi-
tal Research, a Beijing based consul-
tancy, says the system appears to be
aimed at a key goal articulated by Presi-
dent Xi Jinping of fostering greater
social control and public morality.
In a research note, she argues that the
goal of “social credit” scoring is to return
China to levels of personal surveillance
common between the 1950s and the
1970s, when everyone had files main-
tained by their work units under Mao
Zedong’s regime, and busybodies in
every neighbourhood kept authorities
informed of the minutiae of daily life.
Greater mobility and decentralisation
mean that the country’s “dangan” sys-
By Charles Clover
+ but to a range of non-financial activity
+
SOCIAL
+
CREDIT
53
RATING
USES DATING
WEBSITE
✓
BOUGHT
PHOTOGRAPHIC
EQUIPMENT
✗ +
+
59
When big data
meets big brother
tem is no longer the complete cradle-to-
grave record it once was, but the big data
being gathered by the leading internet
groups on China’s web users, which
numbered 668m according to the gov-
ernment’s latest estimate last year, may
turn out to be a close substitute.
Harvesting this data has become a pri-
ority for Beijing. Local district adminis-
trations have set up “data co-ordination
bureaux” aimed at being “a combina-
tion of post office and data pool”,
according to the state-run Xinhua news
agency, where dozens or even hundreds
of databases are centralised.
“I think there is a sense in [the Chi-
nese] government that all this data is
being generated on people’s mobile
phones ... and smart watches and the
government thinks ‘Hey, I want some of
that’,” says Rogier Creemers, a lecturer
on Chinese politics at Oxford university.
Government security agencies
already have a vast array of internet
censorship and surveillance apparatus
known as the “Great Firewall”, which
monitors and blocks social media posts
about ethnic troubles in the northwest-
ern province of Xinjiang, or the 1989
Tiananmen Square massacre.
Mr Creemers insists it is too early to
judge the new “social credit” system
that appears to combine mass surveil-
lance with algorithms aimed at estab-
lishing correlations between social
behaviour and internet data. He says it
is unclear whether there is any link
between the government’s project and
★ FINANCIAL TIMES
FT BIG READ. CHINA
USED QUICK LOAN
WEBSITE
✗
SOCIAL
+
CREDIT
RATING
the experimental private sector credit
rating efforts under way by Alibaba’s
Sesame Credit and Tencent.
‘Good people’
There are many questions about what
goes into the private credit scores. China
Rapid Finance, a peer-to-peer lender
which calculates credit ratings using
Tencent data, says it uses online pur-
chasing data to determine creditworthi-
ness. According to its scoring system,
scuba gear is good, while photography
Points and prizes
Credit checks mix with
marketing gimmicks
In September, Beijing International
Airport offered fast security screening
to Sesame Credit customers with
credit scores of 750 out of a possible
900 points.
A month previously, Luxembourg
and Singapore said they would soon
offer a fast-track visa service to highly
rated Sesame Credit customers — with
a visa threshold of 750 for
Luxembourg and 700 for Singapore.
While these perks are dismissed as
gimmicks by the eight licensed
companies themselves, they do show
the increasing reach of private credit
scores marketed not just as an
assessment of creditworthiness and a
+
+
SOCIAL
+
CREDIT
71
RATING
equipment is bad. The smartphone app
for Alipay, Alibaba’s payments affiliate
which runs Sesame Credit, tells users
that the airline tickets they buy or hotels
they book online influence their score.
In addition, it says “we will consider
your overall influence in your social
connections circle and the credibility of
your friends” in determining the score,
which goes up to 900.
A spokesperson for Ant Financial,
Alipay’s parent, denies that a friend’s
rating will “impact your own Sesame
predictor of default, but a proxy for
character and status.
Highly rated Sesame Credit members
get better placement on dating website
Baihe.com. Ping An Group, one of China’s
largest insurers, uses a scoring system
that improves your chances of adopting a
pet from an animal shelter.
Experts say there are reasons to
suspect that much of the credit rating
mania is being driven mainly by the
potential for marketing tie-ins, rather
than the creation of a big brother-style
surveillance state.
Sesame Credit rates people based
partly on their relationship with other
users of Alipay, according to Mark Natkin
of Marbridge Consulting, which may be a
way for someone to raise their credit
score by encouraging friends to use
Alibaba’s payments service. “It seems
some of these metrics are skewed to
BOUGHT SCUBA
EQUIPMENT
✓
Personality test: from
online shopping to
social networks, an
individual’s internet
activity can dent their
credit rating. Criteria
shown are based on the
analysis of lenders
such as China Rapid
Finance — Dreamstime; Fred
Dufour/AFP/Getty Images
BUYS LOTTERY
TICKETS
✗ lawed practice of “red lining” borrowers
credit score”. But a senior figure at a sec-
ond Chinese internet company indi-
cates that an individual’s online links
are fair game in rating users.
“We can assume good people are
friends with good people,” says a senior
figure at a Chinese internet company,
when asked to explain the credit rating
algorithms, “and credible people are
friends online with credible people”.
The lack of public information on the
private companies’ credit rating algo-
rithms has aroused the curiosity of ana-
lysts, who question whether the systems
will be any good at their primary pur-
pose — predicting defaults.
“When I say credit rating, I think of
the ability to repay a loan. Some of these
companies seem to see the goal as more
broadly defining the character of their
users,” says Mark Natkin, head of Bei-
jing -based Marbridge Consulting.
Mr Creemers says the credit rating
system represents a melding of two
utopian visions: that of Silicon Valley
and that of the Chinese Communist
party.
incentivise behaviour beneficial to the
company,” he says.
Ant Financial, Alibaba’s payments
affiliate which runs Alipay and Sesame
Credit, says: “Users’ activities on
ecommerce websites (not restricted to
Alibaba marketplaces) will affect the
Sesame Credit score along with all the
other dimensions.”
Experts say there is an evident
conflict of interest if the profit motive
is affecting their credit default models.
“This is a problem and a reason to
question the authenticity of these
credit scores,” says Wang Zhicheng of
the Guanghua School of Management
at Peking University.
He adds that it will take a few years
to assess whether the efforts of
Sesame Credit and the other
companies were fit for their primary
purpose — predicting credit default.
11
Consumption’s spur Credit scores are
seen as the gateway not just to loans,
Cui bono? A legal vacuum and a lack of
civil protections on privacy in China
heighten fears on ‘social credit’ trends
State role Beijing says it intends to use
online and offline data to rate citizens
for ‘honesty’ and ‘trustworthiness’
“The Chinese government, Chinese
internet companies and Silicon Valley
seem to share a commitment to pater-
nalistic improvement of the human
condition,” he says, citing a quickly
expanding literature epitomised by
Nudge, the 2008 book that argues tech-
nology can create largely undetectable
incentives for people to improve.
“In both Silicon Valley and in Beijing,
there is this notion that we can use tech-
nology to shape and reshape incentives
in such a way that people will behave
better. And ‘we’ get to decide what we
mean by better,” he says.
Melding pot
China’s social credit system, argues Mr
Creemers, is an extreme example of
what starts when a smartphone rewards
its owner for taking the stairs instead of
an elevator, or users rate others to
become a “trusted reviewer” on the
travel website TripAdvisor.
China is not alone in wanting to tap
into the surveillance power of the inter-
net. The 2013 revelations of Edward
Snowden, the US whistleblower,
exposed the involvement of American
companies and intelligence agencies in
programmes that gave the government
access to personal data. US credit rating
agencies have experimented with using
internet data as indicators — such as
where someone shops — that according
to some have become akin to the out-
according to their neighbourhood.
The growing distrust of Google, Face-
book and other tech groups in the west
‘If China wants to assign
everybody a score, it needs
to work on the accuracy of
the data. At the moment it’s
“garbage in, garbage out”’
highlights the unease surrounding the
amount of personal data these compa-
nies hold. In China, the merger of big
data and big brother is even more ambi-
tious, say analysts, taking place in a legal
vacuum and by an authoritarian state
with no civil protections on privacy.
“On the outside this system may seem
like a way to promote trust and credit
worthiness and is supposed to be pro-
gressive,” says Hu Jia, a Chinese activist
and dissident. “But in an authoritarian
state, there is no limit to what they have
access to, and there is no law to protect
those that are harmed.”
Some of the companies involved —
many with global reputations to protect
— are taking precautions. One executive
from a company that received a credit
rating licence says frankly: “There is no
clear regulation in China yet [about the]
kind of data a private corporation can
access and what you cannot use.”
The executive says his company has
access to a vast trove of mobile phone
records as part of a partnership with
Chinese telecoms groups, and faces no
legal restrictions on their use. But he
says the company has chosen not to col-
lect this data due to internal concerns
over privacy.
“The standard we apply is more strict
than some of our competitors,” he says.
Zhao Zhanling, a Beijing lawyer who
specialises in intellectual property and
privacy rights, says the law is full of
holes — regulations governing the crea-
tion of private credit rating systems
include a list of data for which consent is
required, but it does not clearly define
“personal information”and there is no
law about what “consent” means online.
Even the stewards of China’s big data
revolution appear nervous about the
implications of their plans. Wang Xiao-
lei, deputy director of the People’s Bank
of China credit rating centre, which is
set to manage the new “social credit”
system, was quoted by Xinhua last year
decrying the lack of legal protection on
personal data in China.
“Think about it: personal information
would be floating around all over the
place, and the individual would be unin-
formed about any of it,” she says.
“Wouldn’t that be quite scary?”
Additional reporting by Ma Fangjing
12
WEDNESDAY 20 JANUARY 2016
Carney is right to keep
UK interest rates on hold
It is too soon for the BoE to declare victory in macroprudential policy
It is official: the special relationship
does not extend to monetary policy.
Mark Carney, the Bank of England gov-
ernor, has confirmed the market’s
hunch that UK policymakers are in no
rush to follow the US Federal Reserve’s
lead by raising interest rates.
In his first assessment of the eco-
nomic situation since the Fed’s key
decision last month, Mr Carney argues
that Britain is far more exposed than
the US to weakness in the global econ-
omy, which will squeeze the export sec-
tor and drag on inflation. The UK’s con-
tinuing fiscal austerity contrasts with a
likely loosening of fiscal policy in the
US. Moreover, the BoE’s ability to use
macroprudential powers to curb credit
growth gives rate-setters greater free-
dom to focus on the inflation outlook.
The world is now weaker and UK
growth has slowed. This is no time to
make a move, Mr Carney concludes.
The BoE governor has gone to some
lengths to justify his backtracking from
July, when he said that a decision to
raise borrowing costs from historical
lows might come into focus “around
the turn of the year”. Having repeat-
edly torn up his own forward guidance,
he is now sensibly avoiding giving any
strict timetable for the path of policy.
On this occasion, however, there is no
need for embarrassment over the
change of tack. Even at the time, Mr
Carney underlined the need for the
Monetary Policy Committee to feel its
way and adjust to external shocks.
Now, the oil price collapse and China’s
volatility mean the global context has
incontestably changed.
The governor is right to advocate
keeping rates low, given a loss of
momentum in the domestic recovery,
an absence of inflationary pressure and
huge uncertainty over the global out-
look. Policymakers should feel com-
fortable waiting much longer to nor-
malise policy, while this persists.
Slowing China needs to
support its economy
Deep faultlines threaten to scupper delicately poised rebalancing
After record capital outflows, stock
market turmoil and a renminbi under
severe pressure, the world has been
waiting for reassuring economic news
from China. So much so, that even
when Beijing announced the country’s
lowest economic growth rate since
1990, investors took comfort and set
global equity and oil prices on to a
firmer trend.
Some optimism is justified. The offi-
cial growth rate may have slowed from
7.3 per cent in 2014 to 6.9 per cent last
year, but that remains within touching
distance of Beijing’s official target of
around 7 per cent. There was also
unambiguous evidence that China is
starting to achieve its long-heralded
transition away from investment and
heavy industry as the main locomo-
tives for growth in the world’s second-
largest economy. The huge steel and
power sectors announced a full-year
contraction in output volumes.
Equally encouraging for the cause of
structural transformation were figures
showing that consumer spending con-
tributed 66 per cent of China’s gross
domestic product growth, the biggest
contribution since 2001. Further
underlining this shift, a booming serv-
ice sector accounted for 50.5 per cent of
GDP growth, 10 percentage points
more than the once-dominant manu-
facturing sector.
Such progress, however, does not dis-
guise either the pain inherent in the
transition or the deep faultlines that
threaten to fracture China’s dynamism.
Chief among these is the uncomforta-
ble fact that China is buying much of its
growth through a ballooning issuance
of corporate and household debt.
Not only does China have the world’s
highest private debt levels — having
overtaken the US, Japan and South
Korea since the 2008-09 financial crisis
— it also has the highest debt service
burden as a proportion of GDP along-
Moreover, there is a good case for
interest rates to remain much lower
than historic norms, even when they do
start to rise. Gertjan Vlieghe, the MPC’s
newest member, this week argued that
the UK’s higher levels of debt, ageing
population and greater income ine-
quality could mean that a lower inter-
est rate is consistent with full employ-
ment and inflation rising to target.
Mr Carney acknowledges the con-
cern that keeping interest rates very
low for a long time may fuel a sharp rise
in risky lending. It does not take a gen-
ius to see this, he adds, showing some
frustration at the chorus of commenta-
tors warning of a credit bubble.
It is true that household debt has
grown more slowly than the economy
since the start of the recovery. Private
credit growth is only just rising to
match the pace of nominal output
growth. There is more reason to worry,
though, about the more rapid growth of
unsecured finance, and the boom in
buy-to-let mortgages, car finance and
commercial property. Here, Mr Carney
may be too quick to declare the BoE’s
new macroprudential experiment a
success, when the new tools at its dis-
posal are, to a large degree, untested.
He argues that the BoE’s limits on the
most risky mortgage lending have
helped cut the number of highly
indebted households to levels last seen
in the 1990s. But curbing buy-to-let
mortgages present the next challenge.
So far, the BoE has avoided acting on it,
a decision that could be seen as politi-
cal. It is instead waiting to assess the
effect of George Osborne’s fiscal clamp-
down on the sector.
Mr Carney is right to assert that this
has not yet been a debt-fuelled recov-
ery. However, if credit growth in pock-
ets of the economy remains unsustain-
able, macroprudential policymakers
may need to break new ground in the
coming months.
side Korea, according to estimates
from the Bank of International Settle-
ments (BIS). Indeed, the costs of serv-
icing Chinese private debts amount to
around 20 per cent of GDP, up from 12
per cent in 2009, the BIS says.
Such debt burdens, coupled with
overcapacity in several industries and
declining industrial profits, threaten to
tip China’s investment slowdown into a
disorderly rout. The investments made
by companies slipped sharply in
December, falling well below the full-
year expansion rate of 10 per cent.
The danger now is that the contrac-
tion in industrial profits, the debt serv-
ice burdens and a flagging property
market could together depress house-
hold income growth — jeopardising the
consumer spending that forms the
most robust stratum in the economy.
For its own sake and for that of an
imperilled global economy, Beijing
should prepare a robust fiscal and
monetary bulwark against signs of con-
sumer fatigue. With a fiscal deficit that
totalled 2.3 per cent of GDP last year,
China still has room to divert extra fis-
cal resources to support welfare pay-
ments for less well-off segments of soci-
ety, thus helping to shore up spending.
In addition, Beijing should consider
aggressive cuts to its bank required
reserve ratios this year, thus releasing
significant stores of liquidity into the
economy and boosting demand. In
addition, gradual cuts in interest rates
may also help alleviate the debt service
burden falling on corporations.
Many economists do not give cre-
dence to China’s official GDP figures,
believing the real rate of growth to be
significantly slower. But whatever the
reality, Beijing faces a risk that without
measures to support consumer spend-
ing, the current slowdown could
morph into a slump. Recent events
have shown how fragile confidence can
be when it starts to unravel.
★ FINANCIAL TIMES
Europe leads the way into the ‘blue century’
Sir, Having read with interest your
excellent Special Report on the future
of the food industry (January 15), I
would like to point out that a very
important dimension is not covered: a
consideration of the fisheries and
aquaculture sectors.
Seafood is a major source of healthy
and affordable protein and, according
to the UN’s Food and Agriculture
Organisation, its consumption per
capita is increasing worldwide. Of all
the food production sectors,
That’s rich, but no more
than I’d expect of Duda
Sir, Andrzej Duda, the president of
Poland, claims in his op-ed that Poland
is a stable democracy in which the rule
of law is respected (“Poland is still pro-
European”, January 18). This is rich
from a man in his 48th day of wilfully
breaking the Polish constitution, the
highest ław in the land.
On December 3, the Polish
Constitutional Court ruled that
President Duda was obliged to swear in
three judges of the court elected by the
last parliament. He has failed to do so,
even though the constitution states
clearly that “the verdicts of the
Constitutional Court are binding on all
and are final” (Art 190, para 1).
And one factual error: Poland is one
of the few countries in Europe where
inequality has actually declined over
the past eight years. Furthermore,
according to Eurostat, unemployment
is at its lowest ever level, and Poland
has gone from having the second
highest unemployment rate in the EU
in 2007, when his Law and Justice party
was last in power, to having the 14th
lowest (out of 28 countries).
But truthfulness, accuracy and pride
in one’s country’s achievements are not
things I have come to expect from
President Duda. In this context, last
Friday’s downgrade of Poland’s rating
by Standard & Poor’s as a result of the
undermining of independent
institutions by the new government,
and the first in the country’s history,
hardly seems worth mentioning.
Jacek Rostowski
Warsaw, Poland
Former Deputy Prime Minister and
Finance Minister of Poland
Meetings from which the
Bowie Bond concept grew
Sir, Before the creation of the “Bowie
Bond”, it was extremely difficult to
obtain small and midsize financing for
recording and music publishing
companies. The creation of the asset-
backed security attached to David
Bowie’s recording and music publishing
royalties (the Bowie Bond) evolved out
of a forum that I held at the Peninsula
Hotel in New York to address this
problem. David Pullman attended that
forum in search of information on how
he could apply his experience in asset
backed securitisation sales to the music
business. He, I and David Bowie’s
business manager subsequently met at
my suggestion, and the concept grew
out of those first meetings.
The income being secured came
from only two sources: Bowie’s
recording royalties and his songwriting
royalties. Perhaps because it was the
first of its kind, an enhancement was
required from EMI Records (one of the
Sorry, kids,
but all the good
usernames
are taken
Notebook
by Lisa Pollack
Letters
aquaculture in particular has registered
the fastest growth of the past 20 years,
especially in developing countries.
Three billion people receive 20 per
cent of animal protein intake from
capture fisheries and aquaculture.
Since 1950 the supply of fish for food
per capita has tripled (6kg/cap/yr to
19.2kg/cap/yr in 2012). This trend is
bound to continue if we are to meet the
need of a growing world population in a
context of stagnating fish production
from the wild.
world’s then great recording companies
and now non-existent) for the
recording royalty stream. Interestingly,
in those days of focus on the record
business, no enhancement was
required to secure his music
publishing-songwriting royalties.
Several companies were started to
secure the income of other writers, but
none of these ever really took off. I
believe the primary reason for this was
that at that time, asset-backed
securities were sold in bundles of
$100m or more and the cost involved
in developing such a security could not
be justified for smaller amounts. For
reasons peculiar to the Bowie situation,
this was not a problem. For other
securitisations it proved to be an
impossible impediment, as it was then
extremely difficult to find artists’
valuations at the $100m-plus level.
Michael Sukin
Entertainment Attorney and President,
Sukin Law Group,
New York, NY, US
Sir, What a brilliant article from
Gideon Rachman (“Bowie’s lesson is
not to worry about politics”, January
19). Given Bowie’s extraordinary range,
and the era he lived through, I’ve often
wondered what his politics, and his
views on certain public events, might
be. But there is something depressingly
trite about the manner of many artists’
contributions to public debate. Save for
some (ahem) ill-advised comments
about the virtues of fascism in 1976,
which he later retracted and attributed
to his mental instability at the time (“I
was out of my mind, totally, completely
crazed”), Bowie generally rose above
the fray and let the music and the
performance do the talking. This had
far more impact — an inspiration to us
all!
Harry Keegan
Partner,
Akin Gump Strauss Hauer & Feld,
London E1, UK
How Aggie students made
their mark on rivals’ field
Sir, Regarding Robert Gasser’s letter
(January 13) on college pranks: Texas
A&M and the University of Texas have
long been rivals, both on and off the
football field.
A number of years ago several Aggie
students went to Austin and gained
access to the Texas football stadium
one summer night. They came armed
with sacks of winter wheat seed. The
seed was carefully distributed across
the field in a pattern that spelt out
“A&M” when viewed from the side of
the stadium where the Texas student
body customarily sits. They then left,
undetected.
Subsequently, the grounds keepers
faithfully watered the field. By the time
After five years of receiving emails not
meant for me, I finally met my digital
doppelgänger in December. I was on a
business trip to New York, where she
lives. She suggested afternoon tea at a
chic hotel.
What brought us together is a
notably contemporary problem of
similar usernames. Her last name,
“Pollock”, forms part of her Gmail
address — like mine. Approximately
once a month, someone who is
sending her an email looks at that last
“o” in her name and summarily
decides it must be an “a”. My inbox is
then graced with an announcement
about a shipment of skinny belts that
has arrived in SoHo, an offer of Latin
lessons for children taught by an
enterprising Brooklyn teenager or an
invite to Thea’s sixth birthday party.
I have thus become a voyeur
afforded guilt-free glimpses of a
parallel world of fashion, interior
design and parenting posh children.
It is distinctly less pleasant for my
digital doppelgänger who, over
inexplicably sweet mini cakes, huffs
about people’s wrong-headed
attempts at spellchecking her name.
Nonetheless, our online identity
problem also demonstrates that we
were alive during a golden age of
online identity that is now over. We
may not have defined benefit pension
plans or centrally located homes in
major metropolitan areas, but we do
have relatively simple Gmail
addresses that include our names. In a
generation or two, this will make us
look like dinosaurs. Google, after all,
For these reasons the next century is
rightly seen as the “blue century”, with
many economic opportunities to be
developed at sea rather than on land.
Europe is already leading the way on
innovative and sustainable fish and
seafood farming techniques that will
provide new and valuable food sources.
Perhaps this important dimension can
be addressed in the near future.
Karmenu Vella
European Commissioner for Environment,
Maritime Affairs and Fisheries
that football season arrived the wheat
had sprouted, locally producing a
noticeable change in the tint of the
green turf.
The wheat, being rather closely
related to the grass on the field could
not be eliminated without killing the
grass itself. Since it was an annual,
however, no harm would result if it was
regularly mowed and allowed to die a
natural death.
The Texas student body was
therefore treated to the sight of the
large “A&M” throughout the fall
football season.
DW Sutherland
Downers Grove, IL, US
Communal and divisive
politics of 1940s’ Punjab
Sir, While religious intolerance and
persecution in Pakistan may have
started in the 1950s, when the
Pakistani state decided to declare the
Ahmedian sect of Islam as non-
Muslim, its root cause lies in the
communal and divisive politics of
1940s’ Punjab (“The creeping menace
of Asian Islamism”, January 14).
Punjab’s governor Sir Evan Jenkins,
in the aftermath of the Muslim
League’s agitation for the creation of
Pakistan that took place in Lahore in
1947, wrote: “The Sikhs have been
profoundly moved by the obvious
desire of the Muslims to seize power for
themselves, and would not permit
them to do so. The agitation has shown
Pakistan in all its nakedness and was a
fair example of the kind of treatment
that the minorities, including the Sikhs,
might expect from Muslim extremists”
(Official Papers, February 28 1947).
Mohammed Ali Jinnah was indeed a
secular politician, but the party — the
Muslim League — he headed was
communal. It was this dichotomy that
lies behind his failure to lead Pakistan
on the road to a secular democracy.
Simren Kaur
Jalandhar City, Punjab, India
does not free usernames that have
been taken before, even if an account
becomes inactive. So if you have a
combination of your first name and
last name in your Gmail address and
little else: congratulations, you have
ruined it for everyone with the same
name, or a similar one, who comes
after you. Same with Twitter: you can
go ahead and feel bad for future
generations, if the platform survives
that long.
It is a different story when it comes
to Hotmail or Yahoo. Their terms of
service specify that, after a period of
inactivity, addresses may be recycled
so that they can be used by others.
Yahoo explains that this is “due to the
limited number of names available”.
On the one hand, it’s comforting to
know that the digital detritus of my
teenage Hotmail account has not
cluttered the online world for those to
come. On the other, the risks to the
privacy of past owners are unnerving.
There are disadvantages for the new
owners, too. As one such user
discovered, it is hard to enter your
new Hotmail address into your
current PayPal account if PayPal
thinks that address already exists. So,
if you do inadvertently pick up a
recycled account, you had better hope
that the person was as digitally dull as
someone who shares motivational
quotes on Facebook.
Many will shout that this is all the
more reason to purchase a domain
name — to allow, say, a family of
Joneses to have email addresses along
the lines of [firstname]@jones.com.
Wednesday 20 January 2016
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
Measuring inequality
and debt sustainability
Sir, Chris Giles questions Oxfam’s
assessment of global inequality
(FT.com, January 18) by suggesting
that net worth is an ambiguous
measure of people’s endowments,
particularly to the extent that wealth
measures can be “mucked up” by
valuation changes, such as the US
dollar exchange rate. These
observations are curious in the face of
the statements from Mr Giles last week
in “There is no reason to worry about
UK household debt” (January 14).
Then, he argued that household debt in
the UK is not a cause for concern
because the net worth of the household
sector is high, disregarding the well-
learned lesson that valuation changes,
of real estate, of stock market assets,
and of foreign portfolios can precipitate
the asset side of household’s balance
sheets while liabilities remain high.
To be clear, in order to establish the
gap between rich and poor, measuring
net worth seems a most reasonable
choice, acknowledging data limitations.
But to establish macroeconomic
sustainability by proposing that net
worth “mucks up” calculations is a
hazardous mistake.
Alex Izurieta
Geneva, Switzerland
Positive impact of housing
wealthishighlychangeable
Sir, Chris Giles argues that because net
households assets in 2014 were in a
very strong position relative to income,
concerns about the level of total UK
household debt are misguided (“There
is no reason to worry about UK
household debt”, January 14). He
makes the common mistake of
assuming that net household wealth,
consisting of bank and saving deposits
plus illiquid financial assets such as
stock market and pension wealth, plus
housing wealth minus debt is the right
measure for understanding household
spending and saving decisions.
Our evidence for the UK, the US,
Australia and Canada suggests that per
£100, household debt’s negative impact
on spending is about four or five times
that of the positive impact of illiquid
financial wealth. And the positive
impact of housing wealth is highly
changeable, depending on mortgage
credit availability, but always far less
than the negative impact of debt. When
debt levels are high, the combination of
a fall in asset prices and a credit crunch
leads to sharp falls in consumer
spending, as we saw in the UK and the
US in 2009-10. Only the most dramatic
monetary and other policy
interventions in the UK, combined
with the advantages of floating rate
mortgages, saved UK banks and
households from a far worse outcome.
With interest rates at the floor,
stretched asset valuations, and a
commitment to fiscal austerity, the
previous policy tools would now be far
less effective.
Mr Giles criticises linkages that have
been made between government and
household surpluses. But is it an
accident that forecasts from the Office
for Budget Responsibility have in
recent years grossly over-predicted the
growth in household debt and under-
predicted the growth in government
debt? Or does the OBR just not
understand what drives household
debt?
Prof John Muellbauer
Nuffield College, Oxford, UK
But here, too, many of the best
addresses — that is, those that are
familiar, pronounceable and
memorable — have been snapped up.
Evidence of this is provided in a
forthcoming paper in The Journal of
Real Estate Finance and Economics.
Thies Lindenthal of the University of
Cambridge finds that there could be
up to 25 per cent more registered
domain names if more user-friendly
ones were available. New addresses
are being released by expanding the
universe of top-level domains — for
example, to include .site and .online —
but whether these are widely adopted
is a different matter.
Those unable to find a web address
to their liking may turn to social
media or other platforms. But
Lindenthal, in a separate interview,
questions whether growth in those
services will also slow when users
cannot find an attractive login name.
“In the end,” he says, “who would like
to be ‘Dave123456789’?”
One way to get around this might be
to start early, ensuring as a parent that
you give your child a name that is
both unique and memorable. Then
immediately buy an appropriate
domain as an investment in their
digital future (Google and others, by
the way, have a minimum age
requirement for accounts).
In the longer term though, we may
have to develop smarter ways to
recycling digital ashes for the benefit
of those to come.
lisa.pollack@ft.com
Wednesday 20 January 2016
Only Germany can tame east-west tensions in Europe
EUROPE
Tony
Barber
E
ven on its own, the refugee
and migrant crisis is stirring
such discord among govern-
ments as to threaten EU
unity. Now, however, this
threat is intensifying because of ten-
sions over EU policy towards Russia and
the actions of a conservative nationalist
government in Poland that is aligned
with Hungary’s self-styled illiberal
democracy. At stake is the EU’s biggest
achievement since the demise of com-
munism in 1989-91: the healing of the
post-second world war division between
western and east-central Europe.
China’s great
economic shift
needs to begin
ECONOMICS
Martin
Wolf
C
hinese policymakers have a
stellar reputation for the
quality of economic man-
agement but the same was
true of the Japanese three
decades ago. For the Japanese, the diffi-
culty of shifting from their high-savings,
high-investment, “catch-up” economic
model proved very large. Indeed, this
has still not been completed. While the
Chinese economy has far more room to
grow than Japan a quarter of a century
ago, its disequilibria are even bigger.
Moreover, contrary to conventional wis-
dom, the transition to a new pattern of
growth has not really begun.
Already, the difficulty of handling this
transition is damaging Chinese policy-
makers’ reputation. Mistakes in han-
dling the implosion of the “bubble econ-
omy” of the 1980s did the damage in
Japan. Now it is the Chinese authorities’
mishandling of the currency and the
stock market. Similarly, the financial
crisis of 2007 and 2008 devastated the
reputation of western financiers and
policymakers. Everybody seems to be a
genius when credit is surging.
Understandably and rightly, observ-
ers are calling upon the Chinese authori-
ties to be more transparent. Given their
political system — “the bureaucrat
knows best” — that is going to be hard to
do, but this is a second-order matter.
The first-order one is that it is unclear
how and whether the transition to a
more balanced economy is to be made,
Again, some people focus on the tran-
sition from manufacturing to services.
This does seem to be going quite well:
OPINION
Satya
Nadella
C
loud computing is one of the
most important transforma-
tions of our time. Although
when you think of it, you
probably think of entertain-
ment, gaming and messaging apps, it
also has significant applications to
health, education and development.
But what if only wealthy societies
have access to the data, intelligence,
analytics and insights that come from
the power of mobile and cloud comput-
ing? If we are not to be left facing a dig-
ital divide between those with access to
rich data intelligence and those without,
we must find ways to spread the benefits
of cloud computing to all.
Sweden’s imposition of border checks
on the Oresund bridge with Denmark,
and the Danish government’s decision
to do the same on its border with Ger-
many, shows that the obstacles to a com-
mon response to the refugee crisis do
not arise in central and eastern Europe
alone. Nevertheless, it is the particular
diagnosis of the problem in countries
such as Hungary, Poland and Slovakia
that distances them from their western
partners.
These governments purport to see the
European way of life as under threat
from waves of Muslim immigrants from
the Middle East, north Africa and
beyond. They do not want their societies
to be multi-ethnic or multireligious in
character. Some would even argue sotto
voce that the New Year’s Eve sexual
assaults and robberies in Cologne dem-
onstrate western liberalism’s fatal illu-
sions about immigration and the inte-
gration of communities.
according to Chinese data, industry
grew at an annual rate of just 6 per cent
in the first three quarters of 2015, while
services grew 8.4 per cent. However, a
large part of this apparent success is due
to growth of income from financial serv-
ices. Just as was the case in the west,
before the crisis, this is as much a symp-
tom of credit growth as of a transition to
a more balanced “new normal”.
The fundamental indicators of a
change in the shape of the economy
would be a fall in savings and invest-
ment and a rise in consumption. Such a
shift is necessary not only because much
of the investment is wasted, but because
it is associated with an explosive rise in
debt. China has today a far higher share
of investment in gross domestic product
than other high-growth east Asian econ-
omies ever had. Furthermore, accord-
ing to the McKinsey Global Institute,
overall indebtedness is extremely high
with a concentration in non-financial
corporations. It is higher than in the US,
for example. (See charts.)
In response to the 2008 financial cri-
sis, China promoted a huge rise in debt-
fuelled investment to offset the weaken-
ing in external demand. But underlying
growth in the economy was slowing. As
a result, the “incremental capital output
ratio” — the amount of capital needed to
generate additional income — has
roughly doubled since the early 2000s.
China’s overall capital-output ratio is
also very high and rising. At the margin,
much of this investment is likely to be
lossmaking. If so, the debt associated
with it will also be unsound. But, if
wasteful investment were slashed, the
economy would go into recession.
What is needed is a measured adjust-
ment in the economic structure, with
credit-fuelled investment falling and
consumption rising as shares of GDP. Is
this happening? No, or at least it is hap-
pening far too slowly. The investment
share has fallen slightly while the explo-
We cannot afford another digital divide
The term “public cloud” refers to
massive privacy-protected data and
storage services rendered over a net-
work for public use. Cloud computing
makes it possible to analyse large quan-
tities of data to produce specific insights
and intelligence. It converts guesswork
and speculation into predictive and ana-
lytical power.
In September last year, the UN
adopted 17 sustainable development
goals to tackle some of the toughest glo-
bal problems by 2030, including pov-
erty, hunger, health and education. Data
and cloud computing will play a central
role in realising those goals.
What would a coherent policy frame-
work with cloud computing at its heart
look like? There are four elements.
The first is investment in infrastruc-
ture that provides low-cost broadband
offering rural areas access to the cloud.
Second, we should build the next gener-
ation of skills to ensure data does not
★ FINANCIAL TIMES
Comment
These same governments are also at
odds with Berlin over a pipeline project,
known as Nord Stream 2, whose pur-
pose is to deliver Russian gas under the
Baltic Sea to Germany. Coming on top of
the original Nord Stream venture,
which opened in 2011, Nord Stream 2
looks to central and eastern Europeans
Hungary, Poland and
Slovakia see their way of
life as under threat from
Muslim immigrants
like a second dagger pointed at their
national security.
Nord Stream 2 is not an inherently
west-east clash, as was shown at an EU
summit last month when Italy was
among those speaking out against an
exclusive German energy partnership
Investment shares
Gross capital formation, as a % of GDP
China 50
Japan
South Korea 40
30
20
10
1960 70 80 90 2000 10 15
Sources: OECD, IMF, Haver Analytics; McKinsey
sion in indebtedness continues: the
ratio of debt to GDP was 157 per cent at
the end of 2007, 250 per cent at the end
of 2013 and 290 per cent at the end of
the second quarter of 2015.
Again, household disposable incomes
were just 61 per cent of GDP in 2013 (the
most recent year for which data are
available). This is a little above the low
of 59 per cent in 2008 and 5 percentage
points below where it was in 2000. Chi-
nese households also save about a third
of disposable incomes. This explains
why consumption is only some 40 per
cent of GDP. Again, the shift in incomes
The authorities face a
dilemma: continue to drive
wasteful growth or push
through radical reforms
just sit in the cloud. Data are little more
than exhaust without coders to write
algorithms that extract insights from it.
Third, governments need to lead by
example. As holders of public data and
the largest consumers of IT services,
government agencies should make data
accessible to the public and encourage
Governments must ensure
that the benefits of cloud
computing are shared as
widely as possible
people to use the cloud by doing so
themselves.
The final element is a balanced regu-
latory environment that protects both
security and privacy while enabling
data to flow freely across borders. Pro-
tection of freedom of expression and the
with Russia. However, a completely new
factor entered the equation in October:
the election victory of Poland’s right-
wing Law and Justice party (PiS).
The determination of PiS to seize con-
trol of all organs of state authority, and
its instinct to brand opponents as
national traitors, have upended the
efforts of Angela Merkel, Germany’s
chancellor, to cultivate Poland as the
democratic pillar of “new Europe”. As
an anti-Russian party, PiS has in fact
scored an own goal because its antics
play into the hands of Germany’s so-
called Putinversteher — politicians who
“understand” Vladimir Putin, Russia’s
president, and who regard Poland and
other eastern critics of the Kremlin as
unstable, paranoid nuisances blocking
German-Russian rapprochement.
Ms Merkel is no Putinversteherin, and
the 28-nation EU’s success in staying
united on sanctions against Russia for
its intervention in Ukraine indicates
China’s debt
by sector (% of GDP) Debt as a % of GDP
Households 300 (Q2 2015 for China, Q4 2014 for others)
Financial
250
Non-financial
corporate 200
Government
150
100
50
0 0
2000 07 2015 (Q2) Japan
towards households, needed to raise the
consumption share in GDP decisively, is
happening at a glacial pace.
In brief, demand continues to depend
on growth of wasteful, debt-fuelled
investment. The shifts in the economic
structure needed to remove this
dependency are just not happening.
Are there alternatives? Yes. The first
would be to let investment decline and
replace it with a bigger current account
surplus. A weakening currency would
help this along. Given the fierce desire of
the Chinese people to take their money
out of the country, shown in the decline
of the foreign currency reserves, this
could well happen under the freely
floating exchange rate the US demands.
However, a Chinese surplus of, say, 10
per cent of GDP, would surely be far too
large for the world to handle.
The second possibility would be to
run a far larger fiscal deficit. This could
right to privacy are vital. In the future
we need not just an agreement to
replace the longstanding “safe harbour”
deal, struck down by the European
Court of Justice last year, to protect pri-
vacy while enabling companies to trans-
mit personal data across the Atlantic.
We will need additional agreements,
that enable privacy rights to follow data
around the world.
Such a framework would encourage
widespread use of the public cloud for
public good. This is already happening.
For example, in states as diverse as Ken-
tucky in the US and Andhra Pradesh in
India, intelligence from public cloud
data is predicting which students are
likely to drop out of school.
Thanks to a mobile-first and cloud-
first company, M-Kopa, Kenyans living
on less than $2 a day can have access to
low-cost solar lighting. An innovative
mobile phone payment system enables
the poor living in slums to make daily
that west and east are by no means split
on all dossiers. Yet it remains a fact that
in some western European circles there
exists a certain nostalgia for the EU of 15
nations or fewer that existed before the
bloc’s 2004 expansion into central and
eastern Europe.
Only Germany has the strength,
strategic interest and sense of historical
responsibility to prevent west and
east from drifting apart. France is
wrapped up in its unilaterally declared
“war” on Islamist terror while the UK is
wrestling with the question of Brexit —
whether to leave the EU.
The political pressures on Ms Merkel
from the refugee crisis will not abate:
five of Germany’s 16 states will hold
elections this year, and a federal election
is due in 2017. The burden of responsi-
bility on her and Germany’s political
classes is heavy indeed.
tony.barber@ft.com
Debt compared
Households 500
Financial
Non-financial 400
corporate
Government 300
200
100
China US
UK Australia Germany
be used to transfer spending power to
Chinese households. That would also
shift rising indebtedness towards gov-
ernment from the rest of the economy.
The reality is that the Chinese econ-
omy is not becoming consumption-led.
Indeed, given the low share of house-
holds in GDP, it cannot be consumption-
led. It continues to be heavily depend-
ent on debt-financed investment. The
authorities face a dilemma: either con-
tinue to drive wasteful growth or push
through radical reforms that might be
destabilising in the short term but fruit-
ful in the long term.
Whatever the rhetoric, the path cho-
sen so far is the former, but that is also
likely to be one of disappointing growth,
soaring debt and even a financial shock.
Chinese policymakers are unlikely to
regain their reputations soon.
martin.wolf@ft.com
payments of 40 US cents for solar light.
The University of the Aegean in
Greece, using cloud data, is working
with fire fighters to predict and prevent
wildfires like the one in 2007 that killed
84 people. In Sweden researchers are
using cloud technologies to ensure that
children are screened earlier and more
accurately for dyslexia.
These should not be isolated exam-
ples. To that end, Microsoft will donate
$1bn in cloud computing resources over
the next three years to serve 70,000
non-profit and non-government organi-
sations worldwide. Philanthropy is a
start. But businesses, governments and
NGOs must come together to harness
the public cloud for public good and
ensure that the benefits of technology
are shared as widely as possible.
The writer is chief executive of Microsoft
and a co-chair of the World Economic
Forum
13
A tragedy in
Rennes and the
problem of
drug trials
BUSINESS
John
Kay
T
wo recent events have
served to highlight the
range of difficult questions
raised by pharmaceuticals
regulation. Last week, a
man died in the French city of Rennes
after a clinical trial of a painkiller went
tragically wrong. In New York last
month, Martin Shkreli, a former hedge
fund manager, was arrested on securi-
ties fraud charges; Shkreli, who denies
wrongdoing, won the sobriquet of “most
hated man in America” after the com-
pany he controlled raised the price of
the life-saving drug, Daraprim, from
$13.50 a tablet to $750.
Daraprim was developed in the 1950s
and the patents expired a long time ago.
The market, though, is small and
Shkreli’s company had acquired the
only US producer. Any other company
that decided to sell the product would
need to gain approval from the Food and
Drug Administration, which would cost
time and money. Anyone taking that
path would face the risk that, when their
product appeared, the incumbent might
reduce their price in predatory competi-
tion, and this knowledge may deter pro-
spective entrants.
The pricing of Daraprim is a textbook
example of the problematic economics
of contestability — the way in which
market outcomes are influenced not
just by the number of competitors but
by the potential for competition.
Regulation that limits entry creates
the possibility of price-gouging, but the
death in Rennes is a reminder that the
logic of requiring approval before drugs
are put on sale is compelling. The value
of careful regulatory scrutiny was dem-
onstrated in the 1960s, when the FDA
blocked US approval for thalidomide,
the drug that led to the birth of thou-
sands of babies with physical impair-
ments in Britain and Germany.
The Rennes incident occurred during
The sector has to understand
that it has responsibilities
to a wider community than
its own shareholders
the first phase of a clinical trial in the
standard (and costly) three-stage proc-
ess for bringing a product to market.
Plainly, this drug was put into testing
prematurely and there will be pressure
to further strengthen regulation. How-
ever, in the industry and outside, some
already justly criticise these approval
processes for being too bureaucratic.
It is politically safer for a regulator to
allow patients to die because a poten-
tially life-saving drug has been held
back than to allow patients to die
because a dangerous drug has been
released early.
Such rigorous and costly testing cre-
ates market opportunities for people
such as Shkreli and, industry com-
plaints notwithstanding, enables the
pharmaceuticals sector to report envia-
ble returns on capital.
It is tempting to conclude that, where
the state regulates products and market
entry, it must also regulate prices. What,
though, is a fair price for a drug? Prices
should surely include acknowledgment
of the value of an effective drug but it
would be unconscionable to propose
that beneficiaries of a life-saving prod-
uct pay what it is worth to them. The
Daraprim price rise dealt a fatal blow to
any belief that the question could be
resolved by appeal to the good sense and
public spirit of the pharma industry.
This is a problem with no right
answer. Although much pharmaceuti-
cals spending is directly or indirectly
funded by government, state control of
the industry in the Soviet Union pro-
duced very little innovation.
Perhaps we should make more use
than we do (or once did) of prizes for
discoveries of public benefit. Otherwise,
a mix of devices used around the world
— supervision of aggregate industry
revenues, monopolistic purchasing
negotiations and readiness to
undermine dominant positions when
they are abused — seems the proper,
pragmatic course.
The industry has to understand, as
Shkreli did not, that its responsibilities
are to a wider community than its own
shareholders. The Rennes incident is a
reminder of those responsibilities.
johnkay@johnkay.com
14 ★ FINANCIAL TIMES Wednesday 20 January 2016

BUSINESS LIFE

Workplace
Six judges sent a frisson of fear through
the workplaces of Europe last week
surveillance is when they said a company had been
within its rights to snoop on an
employee’s online chats with his
sparking a fiancée.
As I wrote up the story on the day of
‘
chatting on Facebook even though she they do not have a monopoly on the
was in the US and they were in the use of technology. Cyber-spying from Dear Lucy
Philippines.
It might not stop there. I once
interviewed an executive from Kronos,
employers is being met with guerrilla
cyber-resistance from employees.
There are the drivers who plug cheap
Work problems
a “workforce management” company,
who waxed lyrical about the potential
GPS jammers from China into the
cigarette lighter slots in their vans to
answered

cyber rebellion the ruling, I was preoccupied with

figuring out the legal implications of
the case. After the fuss died down,
though, I found myself wondering
about the economic implications of a
world where employers can monitor
employees with relative ease.
One of the famous theories in labour
market economics, put forward by Carl
Shapiro and Joseph Stiglitz in 1984, is
based on the idea that there is a
for wearable technology to measure
workers’ tiredness levels in real time.
She reasoned this would help
employers not to overwork their staff.
To put it in economic terms,
information in the workplace is
becoming less asymmetric by the day.
Many companies might welcome this
as they struggle to boost productivity,
co-operate with regulators and combat
the threat of rogue employees.
GPS
jammers in
confuse their companies’ tracking
systems. Or the workers who strap
their employer-provided Fitbits on to
vans, their dogs to boost their “activity
FitBits levels” for the day. Remember the Why does my boss choose to
strapped to business owner who used Worksnaps
to monitor her workers in the
fill his speech with jargon?
dogs — Philippines? She found they were using
programs to fool the software into I work for a rating agency and a core activity is publishing
employees thinking they were working. research. We are proud of the way that we write reports in
are fighting Worksnaps had to design a tool to plain English with no jargon. By contrast, our internal

fundamental “information
asymmetry” between employers and
employees. In other words, employers
cannot easily tell how much effort their
employees are putting in. Because of
this asymmetry, companies pay their
staff more than the “going wage” to
dissuade them from shirking.
It is not 1984 any more. The sort of
monitoring in last week’s European
Court of Human Rights case is just the
start. You only have to look at products
such as Worksnaps to see how utterly
technology has changed the game.
Worksnaps is a piece of software that
takes regular screenshots of a worker’s
Sarah O’Connor computer screen (with their full
knowledge), counts their mouse and
Onemployment keyboard clicks each minute, and even
offers the option of capturing webcam
images. The customer testimonials are
worth reading. One small business
owner enthuses that she was able to
“find and weed out” workers who were
Start-up. Kreditech
Some economists see it the same
way. Alex Tabarrok and Tyler Cowen
argued in a recent essay that better
workplace surveillance would allow
employers to hire more people and
take risks with outsiders who do not
come with flawless pedigrees.
Still, it is hard to avoid one simple
fact about workplace monitoring:
people do not like it. Even when
employers are open and clear about
what they monitor and why, they risk
giving the impression that they do not
trust their own staff. If you act like you
cannot trust them, you should not be
surprised when they act like they
cannot be trusted. That might be a
parenting cliché, but it is also true.
Workplace surveillance risks making
mutinous teenagers of us all.
Perhaps this is a manageable risk in a
world where you can easily identify
and fire any rebellious workers, but
employers would do well to remember
’
identify the cheaters.
back These cat-and-mouse games must
waste a lot of time. It makes me
wonder why more employers do not
use technology to refine how they
measure workers’ outputs rather than
their inputs. Admittedly, it must be
harder to do that in some industries,
but surely every employer has an idea
of what they expect employees to
produce.
My employer, for example, can
measure how many people are reading
this article online, how far down they
read before they lose interest, and
whether it inspires anyone to buy an
FT subscription. This is daunting but at
least I feel I am being judged on the
value of what I actually produce, and
not the number of keyboard clicks and
tea breaks it took for me to produce it.
sarah.oconnor@ft.com
Twitter: @sarahoconnor_
communication is full of drivel. My boss is an enigma. He
adds much value as an approver of research in simplifying
the language. But writing as a boss, his language is full of
leveraging, deliverables, optimising and other nonsense. Why
is this? What can be done? Analyst, female, 29
Lucy Kellaway’s answer
What can be done? generally prefer not to
Absolutely nothing. I am express themselves clearly,
living proof that you can either because it sounds too
dedicate half your obvious, or because it is too
professional life to trying to tricky. It is the job of a
get business people to talk manager to have to do
intelligibly and it makes no unpopular things that
difference. Even the people alienate people. Almost all
who have read my articles management decisions are
for two decades and claim to
like them still start talking
displeasing or threatening
to some. Seen like this it
about leveraging and makes every sense to bang
deliverables the minute my on about deliverables and
back is turned. leveraging. That way
The answer to your first minimum offence is caused.
question — Why is this? — Everyone will listen to
is much more interesting. your boss and conclude that
Some people use jargon he must be doing his job,
because they are too stupid because he is talking in the
to work out what it is they
are trying to say, so saying
way that managers are
supposed to talk. Beyond
plausible-sounding that, they will take no notice,

A credit check by social media

nonsense seems like a good
idea to them.
For your boss — who can
be lucid when it suits him —
this isn’t the case. He talks
this way when addressing
his colleagues because he
chooses to do so.
There could be various
reasons for this. The first is
that we all adapt our
language depending on who
Jeevan Vasagar meets a we are talking to. If all the
German fintech company other managers in your
company talk this way, then
assessing borrowers’ it makes sense for him to do
trustworthiness using so too.
But a more important
Facebook and LinkedIn
as the main thing this
language does is bore
people into submission.
So your boss has worked
out how to play the game
and not get into trouble. I
expect you are one of the
few people who truly objects
— which could be because
you haven’t been with the
company for very long. This
way of talking is highly
contagious, and from your
email it looks like you have
already been infected. You
are using the dread phrases
“core activity” and “adding
value”. Give it a year or two

T
he analysis begins with the
first keyboard strokes of a
borrower seeking a loan on
Kreditech’s site, gathering
clues about personality and
identity — such as whether someone
types in their name or pastes it in.
Copying and pasting a name suggests
a fraudulent bot rather than a human. A
person desperate for money is likely to
jump straight to the sign-up page rather
than spending time reading the website.
Would-be borrowers are asked to share
their browsing history, giving the com-
pany access to their shopping habits and
whether they spend time on websites
that might make them a credit risk, such
as online gambling.
Kreditech, a Hamburg-based start-up
that offers credit and banking products
to people with little or no credit history,
has attracted attention from investors
including JC Flowers and Peter Thiel.
The fintech company’s vision is to build
an “Amazon for consumer finance”,
expanding to offer products for per-
sonal finance management, overdrafts
and payment services.
Traditional credit scoring looks to the
past and present as a guide to the future.
But what would it be like if many data
points, from psychometric testing to
posts on Facebook or LinkedIn, could be
used to build up a more accurate por-
trait of creditworthiness?
Rene Griemens, chief financial officer
of Kreditech, says: “Historic behaviour
may be an indicator for the future, but
for most people it’s not, because for
most people a better indicator is how
they are behaving nowadays and how
this is likely to develop.”
Instead of focusing on repayment his-
tory, Kreditech seeks to uncover a bor-
rower’s “underlying personality” from a
richer data set. The company looks at
information from social networks,
which is voluntarily shared by a loan
applicant.
“Social media tells you a lot about the
person,” says Mr Griemens, at
Kreditech’s office in a building with
striking views of Hamburg’s waterfront.
“What type of friends do you have?
We may be able to see whether he has
friends who have already repaid a loan
to us — that usually is a good indicator.”
Social media gives lenders an insight
into how an applicant spends their time.
A borrower who lives in St Petersburg
but spends all his time in bars in Mos-
cow may be high risk, because his loca-
tion hints that he is spending more time
partying than working. Another tool in
the pipeline analyses the sophistication
of the language a user employs in Face-
book posts or tweets. However, if a per-
son declines to share their social media
profile, Kreditech will not automatically
disqualify them.
Rene Griemens, It is not just the volume of data that
left, and differentiates online lenders such as
Alexander Kreditech; the business is also seeking
Graubner- to transform the classical definition of
Müller creditworthiness.
Julia Knop Rather than ticking off borrowers
against a checklist of requirements such
as minimum income and age, the com-
pany lets its algorithm map an appli-
cant’s behaviour. Looking for correla-
tions in a wealth of data means there
may not be a single “right answer”.
Behaviour that might be suspicious in a
factory worker — applying for a loan
from Hamburg when their job is in
Stuttgart — might make perfect sense
for someone with an itinerant job.
Establishing patterns of behaviour
helps a lender look beyond past
defaults; a borrower might have
attempted to pay back a previous loan
Earnest
Bigger A lender based in San Francisco that
picture focuses on refinancing student loans.
For its borrowers, who may have limited
credit history but high earning potential,
Alternative it takes into account education and
scoring employment history as well as their
factors record of repaying loans.
Avant
A Chicago-based consumer lender that
focuses on borrowers with lower credit
scores, Avant was valued at more than
$1.5bn in a funding round in September.
Avant’s evaluation of borrowers
combines traditional credit history with
a range of data including social media.
Aire
A London start-up that does not lend,
but is seeking to establish an alternative
credit scoring system considering
factors such as professional background.
but struggled to do so on a low income.
Mr Griemens acknowledges that even
algorithms can be flawed. “The algo-
rithm is only as good as the set of data it
has been trained on,” he says.
Kreditech is too small to cause the big
banks much anxiety. Its loan book is in
the “middle two-digit million euros”, Mr
Griemens says. The company, which is
lossmaking, estimates its revenues for
2015 at about €41m.
But the opportunity for a company
that gets this right is significant. Look at
a map of the world shaded according to
credit scores and there are large blank
spaces. In many countries, significant
swaths of the population are not credit
scored. Even in countries where every
adult has a credit rating, a more accu-
rate portrayal of creditworthiness could
open untapped sections of the market.
Although it is based in Germany,
Kreditech’s core markets are the Czech
Republic, Mexico, Poland, Spain and
Russia. In some of these markets, the
start-up extends credit to people who
might otherwise resort to the grey mar-
ket of informal lending. The company
reckons the total market size for con-
sumer credit worldwide is about €8tn.
Like others who extend finance to
borrowers at the margins, Kreditech’s
rates are steep. The company charges a
standard interest rate of 0.8 per cent to
1 per cent a day on a microloan, which is
repayable over 30 days.
The company was founded in 2012 by
Alexander Graubner-Müller and Sebas-
tian Diemer, both of whom had worked
at the German tech start-up conglomer-
ate Rocket Internet. While at Rocket,
the two men looked for a partner to pro-
vide financial services to ecommerce
customers in emerging markets, but
they struggled to find a solution.
Mr Graubner-Müller, who took over
as chief executive in November with Mr
Diemer moving on to focus on longer-
term strategy, says: “Banks were lacking
the ability to evaluate this type of cus-
tomer . . . or credit application proc-
esses were not designed to be user-
friendly in an online context.”
The new chief executive has the fidg-
ety and mildly impatient look of a bright
schoolboy, with blond hair and dark-
rimmed glasses. Mr Griemens, whose
career spans two decades, has a more
relaxed and affable manner. He joined
the company in 2013 and his CV
includes stints at Citibank in London,
McKinsey in Portugal and most recently
a boutique bank in Berlin.
The location of Hamburg for the com-
pany’s headquarters is down to chance.
The two founders were based there at
the time and found angel investors
locally. The city’s handsome brick archi-
tecture and lively clubs and bars make it
attractive to staff. Kreditech has a work-
force of about 200 worldwide.
Given the number of people world-
wide lacking a credit score, it is unsur-
prising that Kreditech is not the only
business trying to apply new technology
to assess a borrower’s trustworthiness.
However, Oliwia Berdak, an analyst at
Forrester, warns that innovative credit
scoring systems have yet to come under
pressure. She says: “The problem is that
it’s early days, and they haven’t gone
through a financial crisis that would put
great stress on these loans.”
To this, Mr Griemens says: “Our sys-
tem has in general worked well also in
negative macroeconomic environ-
ments; of course it needs to ‘learn’ how
to deal with such environments but
overall we expect that the models can
adapt faster and better than credit offic-
ers have done in the last 2,000 years of
banking.”
reason is that managing — and you’ll be leveraging
unlike putting out a rating deliverables too. And by
report — is a slippery then you’ll be ready to be a
business. Managers manager yourself.
Your advice
Rating agencies recently as an amusing read. If he
had a brush with death and fails to get the message, he
the most damning evidence is probably beyond
was their internal redemption.
communication. Drivel is Anon, male
very protective in such
cases. Do the internal Your boss is hardly an
communiqués still get their enigma. He is simply
point across, despite the producing two different
drivel? If they do, you may products for two very
have an excellent role model different markets.
for middle management in a From your description of
highly regulated industry his positive contribution to
here. Gobbledegook can be external publications, he has
fun! the ability to write clearly.
Anon His choice of drivel for
internal communications is
People resort to using probably deliberate, based
jargon when they want to be on a belief that this is what
directionally correct, but are the senior leadership wants.
concerned about being Anon
situationally incorrect.
Internal communication Unless what you are doing is
often needs to reach a broad truly rocket science, jargon
audience and show is normally used to convince
alignment with senior people that what you are
directives. If the doing is complex. If what
correspondent needs more you say about eschewing
specific guidance, they jargon is true — your boss is
should ask their manager concerned that without
directly. jargon his job looks easy. He
Risk consultant, male is insecure. So tell him he’s
smart every now and then.
Some bosses are driven to Insecurities are hard to
drivel and the analyst make go away, but it’s a
should be grateful that her start.
boss is content to inflict it Anon
on employees through
internal communications To your question “what can
rather than let it affect the be done?”, have you tried
publication on which their giving him feedback and
careers depend. highlighting the dichotomy
Lawyer, male that you see? Does his
spoken communication “add
A good way to get the much value” or is it only in
message across might be to the written communication
give the boss some of Lucy’s that you see this gap? If so,
Monday columns on the does it matter?
subject. Just present them Anon
Next question I’ve been busily “leaning in” for the past 18
months. But rather than riches and promotions, all that I have
acquired is a spare tyre from all the canapés at networking
events, a passing acquaintance with my children and extra
wrinkles from the additional projects and initiatives that I
have led. The only resemblance that I have to Sheryl
Sandberg is having to deal with nits on business trips. Should
I throw in the towel and get my life back? Fund manager, 40
Please send answers and new problems to
problems@ft.com. This column appears fortnightly
Wednesday 20 January 2016
Can architecture
keep its sense
of perspective?
Architects’ drawings have long been valued as works of art, but
what happens to them in the digital age? By Edwin Heathcote
C
arlo Scarpa used to begin his
lectures to architecture stu-
dents at the University of
Venice with a lesson in how to
sharpen a pencil. The point of
the pencil was the point. The great Ital-
ian architect, who died in 1978, was one
of the most revered figures in modern
architecture — and one of the vanish-
ingly few who managed to combine
architecture, craft and construction.
He demonstrated how intimate was the
link between drawing and architecture.
Without drawing, in fact, there is no
architecture. “Drawing,” Pier Vittorio
Aureli tells me, “is the means by which
the architect defines his role. He
doesn’t build — he draws.”
Aureli, an architect and academic
who is known both for his writing and
his exquisitely rendered and shadowed
pen drawings, suggests that the drawing
is the code through which architecture
exists: its essence. So how, today, would
Carlo Scarpa’s contemporary parallel
begin his lecture? By turning on a lap-
top? By moving a mouse? A printer?
Architecture is still as much associ-
ated with drawing as it ever was. Yet the
change in mediation from hand to key-
board is a fundamental shift in tech-
nique. Aureli suggests: “The [big-name]
architects are not designers any more:
they have become critics.”
He means that they are often not
involved with the actual drawing proc-
ess, which may now be done by archi-
tects on their staff before the stars
choose between versions of buildings
designed by others and emerging from
2D or 3D printers.
The radical effects of the change are
also being felt, as Aureli points out,
in the way buildings are built. Express-
ionistic forms such as Frank Gehry’s
THIS EVENING’S TELEVISION & RADIO
TELEVISION
As the FT reported in November, the
Welsh town of Crickhowell, outraged at
the tax-avoiding tactics of millionaire
companies, decided to play the same
game. The Town That Took on the
Taxman (BBC2 9pm) follows a group of
local tradespeople to the Isle of Man,
Amsterdam and London, consulting tax
barristers, journalists and “National Tax
Personality of the Year” Jim Harra of
HMRC, who denies HMRC has a “cosy
relationship” with corporate giants.
The townspeople aspire to emulate
companies such as Caffè Nero
(apparently not a penny paid in UK
corporation tax in five years), Amazon
(£11.9m paid on its £5.3bn UK sales), and
so on. We learn about the “Dutch
sandwich”, intellectual property, and
that the Isle of Man (population 90,000)
would, for instance, have been impossi-
ble to construct without using sophisti-
cated computer programmes: to create
his complex constructions, the archi-
tect adapted software from the aero-
space industry and from orthopaedics.
There is little doubt that this repre-
sents a revolution. Mirko Zardini, direc-
tor of the Canadian Centre for Architec-
ture, says, “You could compare it to the
invention of perspective. The digital has
changed the way we perceive architec-
ture. It’s conceptual.”
These early, the ad hoc technologies
adopted by Gehry and other pioneers
present problems for researchers read-
ing the archives. For a start, they now
need to be technically very literate —
but there are also difficulties with pres-
ervation and presentation. Technology
moves so fast that formats become
unreadable in only a few years.
“In the 1990s,” says Neil Bingham,
curator of contemporary architectural
An architectural sketch
or drawing by Mies van
der Rohe or Wren is an
artefact imbued with the
spirit of its maker
collections at London’s Victoria and
Albert Museum, “architects trans-
ferred everything on to microfilm —
and threw the original drawings away.
The memory of that still strikes the fear
of God into everyone.” So what format
do they now favour? “Oh, mostly I’ll just
ask if I can have a drawing on a PDF,” he
replies, matter of factly.
Yet Kieran Long, curator of architec-
ture, design and digital at the V&A, sees
more opportunities than problems.
“The challenges and complications of
collecting drawings and archives
haven’t changed,” he says. “It’s always
been complicated. A project may gener-
ate thousands of drawings — which one
do we want? What has really changed is
their reproducibility.
“Formerly drawings were a unique set
of things that couldn’t be reproduced.
Now a big practice, say Herzog & de
Meuron, might give us a copy off their
server. But they could also give it to 10
other institutions.
Indignation: Crickhowell, ‘The Town
That Took on the Taxman’
★ FINANCIAL TIMES 15
ARTS
T H E AT R E
P’yongyang
Finborough Theatre, London
aaaee
Sarah Hemming
There’s a deliberate irony to In-Sook
Chappell’s engrossing play about North
Korea. Central to its narrative is the disil-
lusionment of its two young protago-
nists, as they run up against the harsh
extremities of life in the DPRK and real-
isetheyhavebeendeceived.
Seoul-born Chappell was inspired by a
childhood visit to the demilitarised zone
and by the testimonies of North Korean
refugees. So although her play examines
the horrors of living under a totalitarian
regime, it also acknowledges the danger
of simply gawping without reflecting
that even in the most liberal of societies,
opinions are shaped by the prevailing
culture.Itmakesforabetter,subtlerplay
thanastraightexposé.
At its core is a Romeo and Juliet story
about Chi-Soo and Eun-Mi, two party-
crossed lovers. We meet them first as
teenagers: Chi-Soo is handsome, outgo-
ing and confident; Eun-Mi is more awk-
ward, shy and insecure. They discover a
shared passion for cinema and dream of
working together as actress and screen-
writer. But the harsh reality of a fiercely
stratified society wrecks their plans and
shatters their belief in the system: it
turns out that, talented or not, only one
ofthemcouldevermakeit.
It’sastorythenaboutNorthKorea,but
also about storytelling, about mytholo-
gising and the damage it does. Chappell
writes some gripping scenes, none more
so than a highly-charged reunion when
Eun-Mi’s gift of a hard-boiled egg to the
famished Chi-Soo speaks of the depth of
her care. In Chelsea Walker’s production,
ChrisLewKumHoiandAnnaLeongBro-
phy bring their characters to warm,
flawed life and trace their changes over
three decades. There is good support
from Daniel York, as both a starving
miner and the Dear Leader, and from
“What it might allow you to do, Clockwise, from — in one format or another — seems LourdesFaberesasChi-Soo’smotherand
however, is visit a show and print a above: St Paul’s by assured. But the way they are displayed, Eun-Mi’shairdresser.
drawing out yourself and take it home. Christopher Wren the way they are archived and perhaps The scale of the story renders it bitty,
It loses its preciousness but that (c1673); Eiffel even the way they are perceived is the ambivalent ending feels rushed, and
might be a better way to reproduce and Tower (anon, changing radically. It’s worth noting that there is a cinematic feel to the bite-sized
show architecture.” c1887); Pier Vittorio Carlo Scarpa, the Venetian with the scenes — which may be deliberate but
The biggest question, perhaps more Aureli’s ‘Non- sharpened pencils, was forced out of his which undercuts emotional develop-
in our age than any other, is authentic- Compositional’ job in Venice as students rebelled ment.ButChappellisawritertowatch.
ity. An architectural sketch or drawing drawing (2001-14) against his too-traditional approach in
by Frank Lloyd Wright or Mies van der Getty
the radical atmosphere of 1968. To January 30, finboroughtheatre.co.uk
Rohe, or by Palladio or Wren, is an arte-
fact imbued with the spirit of its maker.
The pen or pencil strokes, the lettering,
the mistakes and smudges each attest
to a style, a spirit, a way of perceiving
and making. What of the drawing that
emerges from a printer? Even if that
drawing is stunning in its detail, awe-
inspiring in its complexity, does it have
any intrinsic value?
Long is optimistic. “The role of the
curator is actually amplified,” he says.
“We acquired one of [David Chipper-
field’s] drawings for the Neues Museum
in Berlin. It was a computer drawing but
it is annotated and coloured by hand by
the architect, by historians and the con-
tractor. It describes how architecture is
a collaborative process and it is unique.”
If there are benefits to reproducibil-
ity, the effect of the changes might also
be to increase the value ascribed to the
few remaining original works. Those
architects who still draw often use
sketchbooks. Niall Hobhouse, one of
the few major collectors of architectural
drawings, says, “The institutional posi-
tion is to tend to acquire whole archives
or whole projects. They don’t really
know what to do with sketchbooks
because they’re hard to display.”
Having acquired the wonderful
sketchbooks of Portuguese architect
Alvaro Siza, Hobhouse seems to have no
such problem. He displayed them at
Hauser & Wirth’s gallery in Bruton,
Somerset, earlier this year and often
opens them to students and academics
in events and workshops and on his
website. “The excitement in a sketch-
book,” he says, “is precisely in their
illustration of an iterative, sequential
process. They reveal architects at play —
talking to themselves.”
The future of architectural drawings
has 30,000 registered companies. So
what happens now? Nothing, obviously.
But if the Brecon Beacons are alive with
the sound of indignation, then even the
year’s National Tax Personality may be
stirred to quiz Amazon, Facebook and
others more fairly than so far.
FILM
Psycho (Film4 10.55pm) bears re-seeing
regularly; Perkins and Hitchcock at their
nerve-tautening best.
RADIO
A hit on TV, Nurse returns to Radio 4
(11.15pm). Co-author Paul Whitehouse
plays a variety of patients grotesque,
pathetic and funny, as Esther Coles’s
community psychiatric nurse makes
her rounds.
Martin Hoyle
16 ★ FINANCIAL TIMES Wednesday 20 January 2016

Cryptic cross words

Volatility in the value of bitcoin makes it a wholly unreliable medium of account, a poor
reflection of supply and demand for basic commodities like copper. While the number of
transactions using bitcoin has increased, it is dwarfed by conventional payment types

Twitter: @FTLex Email: lex@ft.com Copper price per tonne Number of bitcoin transactions
Copper Copper Daily (’000)
(US$ per tonne) (Bitcoin per tonne) 250
Visa processes 17 Sep 2015
Ocado: be expensive and demanding in terms 8000 35 180m transactions peak of 259,279
of management time. Serving as a per day - nearly transactions
China: on message
200
plan B technology provider to another big 7000 30 700 times bitcoin’s
retailer would certainly deliver returns 6000 peak volume The end of the world is not yet upon us.
Jeff Bezos’s famous maxim — “get big quicker. Being bought by one would 25 China announced December economic
150
fast” — has swiftly become accelerate them still further. 5000 figures yesterday. Despite fears of a
20
conventional wisdom for online 4000
collapse, fourth-quarter GDP growth
retailers. Online distribution is only 15 100 was just a smidgen behind forecasts, at
efficient, he and others have argued, Emerging markets: 3000 6.8 per cent. More importantly for the
when there is massive throughput. So 10 shift in economic structure, December
at companies from Amazon to Zalando, moods and money 2000 50 retail sales growth was above the full-
the land grab has come first, with 1000 5 year trend. Such data — credibly on the
profits to flow later. The snags for Tougher market conditions. High slower side of policy-determined
investors are obvious: a long wait for volatility. Just some of the words 0 0 0 numbers — are unlikely to change the
profits and no guarantee they will consumer goods group Unilever chose, view of either the bulls or the bears.
materialise at all. in its fourth-quarter report released 2013 14 15 16 2009 10 11 12 13 14 15 16 Bulls can say simple mathematics
Investors in Ocado, a UK online yesterday, to capture the mood across Sources: London Metal Exchange; CoinDesk; FT research; Market Realist; SEC filings make a slowdown inevitable. Bears
grocery store, face just such a its markets. Trading has been ugly and might argue the country’s mounting
conundrum. In 2013, Ocado bought political news little better. A mood, debt is more noteworthy than GDP
them some time by agreeing a deal to however, is not evidence. It is a feeling. Good news: the price of copper is up now worth $380 (it has swung above account. Except within its own growth. Both sides are right. Yet the
fulfil deliveries for Wm Morrison, a The right response is to look at the by a fifth in two years. Surprised? Ah, $1,000 and as low as $200 since 2013). ecosystem, bitcoin is not one. Very same could be said of the US, whose
struggling UK supermarket chain. And numbers and reassess, not stay in bed. we meant when measured in bitcoin. Then again, the financial system needs few contracts are denominated in stock market has had a six-year rally
its shares jumped yesterday after In Unilever’s case, the numbers, if So what? Well, exactly. Bitcoin is not no help inventing things that appear to bitcoin. Price movements measured based on cheap money and confidence.
reports that it was close to agreeing a not management’s words, were really money because what things are be stores of value, and anything can in bitcoin do not influence economic Of all commodities, the latter is one of
similar partnership with Amazon. The reassuring. This was particularly true worth, measured in bitcoin, does not play the role: bonds, property, beaver decisions. Only speculators check few in short supply when it comes to
companies declined to comment. in the places where sentiment is the matter. And probably never will. skins, season tickets. Bitcoin is also a their smartphone for its latest price. China. Where the US has honed hubris
Such chatter is nothing new; the worst: emerging markets. Volume Bitcoin is certainly ingenious. means of payment, accounting for a Its use in transactions has doubled in to a force for its good, China has not yet
company had led investors to expect growth, setting aside currency, was Electronic money would normally about 200,000 transactions per day each of the past two years but this learnt how to inspire. Turn this round
such a major partnership by the end of 2.5 per cent there. Prices rose 5.5 per need a third-party ledger to avoid (albeit most of them in online growth rate would need to continue and markets will surely follow.
2015. That none has yet been cent. Yes, the volume number was allowing the same coin to be spent gambling, pornography and even less until 2026 to catch up with Visa.
announced helps explain why the lower than in the last quarter but it was twice. Bitcoin solves this by using savoury areas). There are valid The ferociously geeky developers
shares were at year lows. higher than the average over the past blockchain, a publicly distributed, questions as to the volume of clustered around bitcoin are deep
Rio Tinto: ore full
Investors might prefer it if the ‘B’ two years. growing slab of computer code, with transactions it can take and the into a vicious civil war about whether
stood for bought rather than big. The This makes sense in a broader the (apparent) advantages of computing power required to process to expand the “blocks” that make up Strategy is subjective. Yesterday Rio
main rationale for Sainsbury’s context, too. The rout in emerging anonymity and security, beloved of them. For the layperson, the effort the blockchain. Without this, its role Tinto said it increased iron ore output
proposed acquisition of Home Retail is markets has everything to do with the canned-food-and-guns crowd needed to understand bitcoin is enough as a transaction engine will hit a limit one-tenth in 2015 year-on-year, even as
that the latter’s superior logistics will commodity prices and debt. that likes to call itself “libertarian”. to deter dependence upon it. long before the 21m allowable coins average pricing slumped two-fifths, to
accelerate Sainsbury's’ growth in non- Traditionally, though, lower energy At a pinch, bitcoin ticks the “store Which leads to the third box that are mined. Good news: it doesn’t $48. It intends to increase production
food. Similar arguments could apply to prices are a boost to consumers, of value” box, albeit as a volatile one money is meant to tick: a medium of matter. Bitcoin is not money. 7 per cent this year. The logic behind
Amazon, which for all its logistical provided they are not caused by a Rio’s expansion is that profit is all
prowess is ill-equipped to fulfil large violent economic contraction. No about cost. The more ore it produces,
multi-item, temperature-controlled surprise, then, as JPMorgan research the lower this cost base becomes. In the
deliveries in tight time slots. shows, that emerging market retail issues, are a risky bet. That is very Then it gets really complicated. For replacing the promise of money in an first half of 2015 cash costs in the
This is Ocado’s specialty. Its sales volume growth accelerated nicely, different from saying that emerging calculating capital adequacy, Crédit emergency with actual cash. Minority Pilbara, for instance, fell to $16 per
dedicated fulfilment centres are far from 2 per cent to almost 6 per cent, in market exposure is always a negative. Agricole wants regulators to consider investors cheered, sending shares up tonne from $19 the prior half.
more efficient than in-store picking or the second half of 2015. the group along with the “Switch” 5 per cent at one point, hoping that That looks like a nice margin. Prices
the “dark stores” used by conventional The stock markets, with typical agreements between its mutuals that dividends might soon be paid could get worse, though. China’s
supermarkets. It has turned profitable sensitivity, have made a distinction Crédit Agricole: allow assets or capital to be moved exclusively in cash, not shares. economy is shifting away from heavy
(even stripping out the Morrisons between a commodity rout and an around. On this basis, the core equity Hold the champagne. A price for industry and fixed-asset investment.
contract) and recent results suggest it economic crisis. The FTSE emerging ploughing the weeds tier one ratio was 10.4 per cent at Casa these stakes is not yet settled. A similar While this is nothing new, and has
is still winning customers, partly by index is down a dire 27 per cent over last autumn, but 13.3 per cent at group plan was derailed in August as a result already hurt the balance of supply and
diversifying beyond its core customer the past year, thanks largely to tanking For those bored by the simplicity of level. Analysts at Berenberg think the of ill-specified regulatory concerns. demand for steel, and thus iron ore, the
base of middle-class southerners. commodity producers. But also within Finnegans Wake, there is always Crédit capital figures are flattered by valuing And beneath the organisational story is not yet over. Yesterday came
Yet it will need to grow much more its ranks are consumer-facing Agricole’s organisational structure to Casa’s stakes in the regional banks at spaghetti is a familiar — and mediocre the first sign of the previously
before the benefits of scale really kick companies with resilient share prices mull over. Within the French banking more than 16 times earnings, when the — banking story. The ECB’s warm unthinkable: in 2015 China’s steel
in and profitability takes off. Taking and solid revenue growth: Kimberly- group sits listed bank Crédit Agricole norm for French banks is about 10. words about using leverage ratios to output dropped for the first year in 25.
share in the viciously competitive UK Clark de Mexico and Groupo Bimbo are SA (Casa), along with 39 regional Crédit Agricole Group yesterday said calculate required capital would force Growth can turn to contraction. Harsh,
grocery market is hard; its last trading near long-term highs. Hypermarcas is banks that together own 56.5 per cent it had a plan for untying these knots Casa to continue to cut assets or build objective, facts.
statement showed average basket value growing nicely on the back of of Casa. Beneath that lie 2,489 local that would involve Casa selling its equity via retained profits. Yet raising
decreasing slightly as the group fought consumer goods in Brazil. ANTA is mutuals, with 8.2m members. Casa (total) 25 per cent stake in the regional returns on assets from a paltry 0.2 per
its corner. Sales are still growing, but at selling lots of sneakers in China. And so itself owns about a quarter of the banks back to them. This would raise cent will be challenging in Europe’s Lex on the web
For notes on today’s breaking
a slowing rate, and margins are also on. Emerging markets in general, given equity in the regional banks, so in capital for the listed bank and end the deflationary climate. Those wanting a stories go to www.ft.com/lex
contracting. Expanding abroad would their commodity exposure and debt effect it has a stake in itself. Switch agreements; in a sense, cash payout had better be patient.

Forecasts by
1010
7 1010
1000 -15
1 -6
-9 LOW
-8
36
4
Luxembourg Fair -2 28
4
8 IGH LOW Lyon Cloudy 6 43
4 6 1010 Madrid Cloudy 11 52
4 5 -3 -6 Manchester Fair 4 39
2
3 Miami Cloudy 20 68
6
6 15 2 -1 Milan Fair 5 41
4 1020 Montreal Fair -8 18
3 1
6 2 Moscow Snow -8 18
4 4 -9 Mumbai Sun 29 84
9 12 8 Munich Cloudy -1 30
5 11 1
HIGH
3 5 New York Fair 2 36
10 Nice Cloudy 12 54
7 17 11 10 Paris Cloudy 3 37
17 10
14 Prague Cloudy -2 28
14 LOW Reykjavik Cloudy 4 39
18 15 15 1020 16 Rio Thunder 26 79
1020 40
Wind speed in MPH at 12 GMT 7 Rome Fair 10 50
Temperatures max for day˚C Wind speeds in KPH 17 San Francisco Cloudy 15 59
Stockholm Cloudy -5 23
Today’s temperatures Strasbourg Fair 3 37
Abu Dhabi Sun 25 77 Belgrade Sun 2 36 Copenhagen Cloudy -3 27 Hamburg Cloudy 1 34 Sydney Fair 34 93
Amsterdam Cloudy 5 41 Berlin Cloudy 2 36 Delhi Sun 19 66 Helsinki Fair -16 3 Tokyo Sun 10 50
Athens Rain 10 50 Brussels Cloudy 2 36 Dubai Sun 24 75 Hong Kong Rain 17 63 Toronto Cloudy -4 25
B’ham Cloudy 4 39 Budapest Fair 1 34 Dublin Sun 6 43 Istanbul Fair 6 43 Vancouver Cloudy 9 48
Bangkok Fair 33 91 Buenos Aires Thunder 31 88 Edinburgh Cloudy 5 41 Jersey Sun 5 41 Vienna Fair 2 36
Barcelona Sun 16 61 Cardiff Sun 5 41 Frankfurt Fair 1 34 Lisbon Cloudy 17 63 Warsaw Cloudy -3 27
Beijing Fair -2 28 Chicago Cloudy -3 27 Geneva Cloudy 5 41 London Fair 3 37 Washington Fair 2 36
Belfast Fair 7 45 Cologne Cloudy 2 36 Glasgow Cloudy 4 39 Los Angeles Cloudy 19 66 Zurich Sleet 2 36

CROSSWORD ACROSS
1 Tumble from branch (4)
8 Press endlessly going after good
girl with weak feature (5,3)
No. 15,142 Set by MONK 4 Tearful outside practice, try to 12 See 3
       
turn back a best friend? (7-3) 13 Deport European team with
9 Bother about Spain beginning to luggage on vacation (5)
analyse what it once spent (6) 15 Rising English author with no time
10 Shrub requiring exceptional for Scandinavian one (5)
  drainage (8) 16 One entertained by mostly fat,
11 Destroyed small mollusc, flattened small, porky narrators (5)
at last (8) 17 Getting up, say, about to flatten
14 See 4 down lizard (5)
    
16 Antagonise Liberal MP running 18 Board needing agreement from
English town (10,3) EU neighbours (5)
20 Series about lawsuit that is self- 19 Rushed to collect rubbish that’s
   sustaining once started (5,8) thrown away (8)
23 Incorporate muscle, getting 21 See 3
 brothers to retreat (6) 22 Fear of unlimited pain stopping
25 Calling by scene of shooting with workforce (6)
  a new opening (8) 24 Centrally allocated in pieces of

28 Manx cat, as it were, beside eight (5)
monument (8) 25 Without introduction, approach
     29 Judge, initially under pressure, in rendezvous (5)
a fix (6) 26 See 4
30 Depression round recruit that’s 27 Destroy ring with opening for tiny
delaying mass battle action (10) round gemstone (5)
  31 Zulu champion relinquishing
crown for nothing (4)
DOWN Solution 15,141
 
2 Wife has to vomit, poor devil (6) 6 3 $ : 1 6 * ( 7 $ * 5 , 3
3, 12, 21 Bring to bear and retry a 6 ( ( , , ( (
terribly well-known job (5,5,7) 0 $ = ( / 7 2 9 * 5 2 & ( 5
4, 14, 26 One place to settle / . 7 ( 3 ( 9
6 7 ( ( 3 / ( 6 % 2 8 1 & (
travelling circus – almost outside ( 1 ( & 5 7 5
JOTTER PAD shopping centre (5,6,5) 5 ' , 6 4 8 , ( 7 / 6
5 Rose going topless gets prodded ' < ( 6 , 5 1 7 < 3 (
(5) 2 0 , 1 & 5 ( $ 6 ( $
* ( * ( 0 $ 1
6 A soft cheese? No thanks – some 0 $ 5 , 1 ( 1 ( 2 3 5 ( 1 (
fruit (7) $ 6 2 & 8 ' ,
7 Blokes in hospital department 7 5 , / % < < $ 5 0 8 / . (
turning up for fundamental , 2 / 7 ( & ,
& 2 1 & ( 5 7 2 ' 2 7 , 1 *
procedure? (5)
Wednesday 20 January 2016 ★ 17

TUI Tiffany Randgold Sterling/dollar FTSE Silver Hang Seng Australian v

To boldly go Divergence in Resources Eurofirst 300 US dollar
markets offers opportunities 5.6% 4.7% 2.4% 0.4% 1.4% 1.1% 2.1% 1%
JOHN PLENDER, PAGE 32
1,236p $64.50 4,268p $1.4178 1,310.95 $14.09 19,635 US$0.6928

Morgan Stanley admits FIC failure Short

View
3 Bank unable to turn round fixed-income and commodities unit 3 Equities help pare losses
net revenues sank to $550m, from in a multi-step process,” he said. The A management reshuffle last week
Jennifer
BEN MCLANNAHAN — NEW YORK
$599m a year earlier. bank’s admission of failure underscores ‘We faced under Ted Pick, a former equities head Hughes
Morgan Stanley’s efforts to turn round its Overall, the bank reported net reve- the difficulty of reshaping a business in a a market promoted in October to a souped-up
ailing debt-trading business have been a nues of $7.7bn for the period, slipping market affected by a combination of role running global sales and trading,
“failure”, chief executive James Gorman from $7.8bn a year ago. Net income tighter regulation, a shift to electronic in the favoured senior equities staff. Over time the idea of a black tulip — a quest for perfection
conceded yesterday, as the bank’s weak came to $908m, compared with a net trading and stop-start activity among second half According to Mr Pruzan, the bank was introduced by Alexandre Dumas in the novel of the same
fourth-quarter results were salvaged by a loss of $1.6bn in a litigation-hit period a clients. Last year’s global revenue pool wrongfooted last year by a change in name — has become conflated with the “tulipmania” bub-
strongperformanceinequities. year earlier. from trading debt, currencies and that had market conditions after a strong start, ble that burst shortly before he set his story.
Since the financial crisis the bank has Return on equity came to 4.9 per cent commodities came to $112bn, significant when diverging monetary policies Use the notion in today’s markets and you could be
pursued what he calls a “balanced” busi- for the fourth quarter and 7 per cent for 30 per cent lower than in 2010, accord- around the world spurred bets on inter- describing the search for an unbreakable currency system
ness model, where stable revenues from the year, excluding swings in the value ing to estimates from Coalition, a Lon- dislocation, est rates and exchange rates. or, conversely, that rare trade that bets at just the right
wealth management and investment of the bank’s debt, both well short of its don-based consultancy. significant “We faced a market in the second half moment that such a system does not exist.
management offset the ups and downs of medium-term target of 10 per cent. Morgan Stanley’s FIC unit was once at that had significant dislocation, signifi- Hong Kong has what is widely regarded as the most cred-
the securities division. That strategy A recent cull of about one-quarter of the heart of the Wall Street bank, with volatility’ cant volatility and significant periods of ible currency peg in the world — virtually unchanged for
involved paring back the second-string front-office FIC staff, announced last revenues of $9.6bn in 2006 accounting Jonathan risk aversion,” he said, citing fears over more than three decades. Yet the Hong Kong dollar is hit-
fixed-income business while breathing month, was “not the end of the story”, for more than two-fifths of the group Pruzan Greece, China and a potential UK exit ting four-year lows and bets against the peg are rising. So
new life into equities, where the bank has Jonathan Pruzan, chief financial officer, total, well ahead of equities at $6.3bn. from the EU. “If our clients are not far the weakness has merely moved it to the middle of its
longheldadominantposition. told the Financial Times. He said the But the downturn after the crisis — par- active, if they don’t have confidence, if tight range against the US dollar. But the slide is reinforcing
But Mr Gorman said the bank had bank aimed to reduce assets in its FIC ticularly in securitised products — per- they’re less engaged, then our revenues the idea that Hong Kong itself is coming under pressure,
“failed to meet its objective” for 2015 to division to $120bn or below by the end suaded Mr Gorman it was better to pro- will be impacted.” trapped as it is between China’s still-slowing economy and
boost returns from the fixed-income of next year, from $136bn now, cutting tect leadership in equities than chase Morgan Stanley shares rose 1.1 per the US monetary tightening — which as a pegged currency,
and commodities (FIC) division, where capital and costs. “This was the first step market share in debt and commodities. cent by midday in New York yesterday. it must follow.
The effect of mainland economic surprises on the city’s
key interbank interest rates has risen sharply in the past
five years, according to analysis by Bank of America Mer-
rill Lynch. That means a weaker than expected economy
across the border could curb the capacity of Hong Kong
Non-compliant rates to rise — and higher rates are in theory the mecha-
Renault recalls nism by which the city should attract new funds if its cur-
rency comes under pressure, as it is now.
15,000 vehicles China’s efforts to manage its own far-from-ideal cur-
rency system are not helping. Some traders have turned to
the Hong Kong dollar as a proxy for the renminbi. Others
Renault is recalling more than 15,000 of are putting on more straightforward bets that were the
its Captur SUVs and offering to update renminbi to plunge, the pressure on the Hong Kong peg
hundreds of thousands more cars after would become unbearable.
the French government found that If speculators did break the Hong Kong peg, a black tulip
some of the company’s vehicles trade should be renamed a black bauhinia after the flower
exceeded emissions limits, write on the territory’s flag. Few, if any, analysts believe it could
Michael Stothard in Paris and Andy happen given that the system has so far weathered events
Sharman in London. including Hong Kong’s handover, the Sars virus outbreak
Shares in Renault fell last week on and the global financial crisis.
fears that it could become embroiled in a No one has ever created a truly black tulip. But the grow-
scandal similar to the one that has hit ing bets against the Hong Kong dollar suggest some traders
Volkswagen. But they recovered some think the black bauhinia just might exist.
ground yesterday after Ségolène Royal,
French environment minister, said Hong Kong $
Renault and other carmakers had not Against the US$ (HK$ per US$)
used software-based defeat devices in
7.74
diesel-powered vehicles to cheat in
emissions tests. However, some of their
7.76
vehicles did have unacceptably high
emissions on the road.
The recall and the update offer are 7.78 The Hong Kong
part of Renault’s strategy to regain the dollar is hitting
trust of investors and customers. “We’re 7.80 four-year lows
not cheating, we are meeting the norms against the US
and we are not trying to trick the 7.82 currency and bets
consumer,” said Thierry Bolloré, the 2011 12 13 14 15 16 against the peg
company’s chief competitive officer. Source: Thomson Reuters Datastream
are rising
Report page 19
jennifer.hughes@ft.com
Martial Trezzini/Epa

Wellcome Trust beds in with Goldman

for £2bn student housing venture
JUDITH EVANS of an investment bank and a charitable assets in 2013 and became one of the
PROPERTY CORRESPONDENT
trust combines iQ, owned by the Well- sector’s largest names with the purchase
Goldman Sachs has joined forces with come Trust, with Prodigy Living, owned of a £500m portfolio from Knights-
the Wellcome Trust, the charitable by Goldman Sachs in tandem with Grey- bridge Student Housing in May 2015.
foundation, in a £2bn student accom- star, a US property investor. Wellcome, a health research charity
modation joint venture that will Goldman will own 68.4 per cent of the that owns £18bn in investment assets,
become the closest competitor of the new venture, Wellcome 28 per cent and has been involved in the sector since
Brands braced for $7.2bn sector’s pioneer, Unite Group. Greystar3.6percent.VeroGroupwillini- 2007. It bought out its iQ joint venture
hit from online ad fraud tially hold a portfolio of 23,500 beds in 25 partner Quintain for £106.4m in 2014.
The new venture, Vero Group, has been towns across the UK — compared with The combined company, which
The booming digital advertising formed as investors pile into private stu- more than 44,000 for FTSE 250-listed employs about 600 people, will con-
market is providing a boon to dent housing to take advantage of a sup- Unite — but plans to expand via new tinue to run the iQ and Prodigy brands
fraudsters, who will cost brands $7.2bn ply crunch after accommodation failed developmentandbuyingexistingassets. at least until the end of 2016.
this year, up from $6.3bn in 2015, to keep pace with student numbers. Richard Spencer, managing director Analysts at Liberum said 25-35 per
according to the US Association of A record £6bn was invested in private at Goldman Sachs, said: “We are com- cent of the UK’s student accommoda-
National Advertisers and White Ops, UK student accommodation in 2015, mitted to building the UK’s leading stu- tion stock was traded in 2015, driving up
an online ad fraud investigator. more than the equivalent figure for dent accommodation provider.” values and prompting investors to take
Report i PAGE 21 North America, according to lawyers Goldman and Greystar bought their more risk on new developments.
Addleshaw Goddard. The rare alliance first joint student accommodation Lombard page 22

Companies / Sectors / People

Companies
AB InBev.......................................................21
AbbVie...........................................................18
Abbott............................................................18
Adecco............................................................31
Admiral..........................................................23
Alcoa..............................................................30
Alibaba............................................................11
Allergan.........................................................18
Amazon..............................................16,18,31
Anglo American......................................20
Audi................................................................20
BAE Systems..............................................31
BHP Billiton..........................................20,31
BMW...............................................................20
BP.......................................................................9
BSI.....................................................................21
BTG Pactual................................................21
Banca dello Stato del Cantone
Ticino..............................................................21
Banco Popular..........................................32
Bank of America......................................18
Barclays.........................................................18
Berkeley Group.........................................31
Berlitz...............................................................9
Bharti Airtel................................................21
British Land................................................22
Budweiser....................................................19
Burberry.......................................................20
Burger King................................................19
BuzzFeed......................................................19
China Construction Bank....................21
China Rapid Finance..............................11
Citigroup.......................................................18
Citizens..........................................................22
Court of Appeal .......................................4
Credit Suisse..............................................18
DNB.................................................................32
Daimler.........................................................30
De Beers......................................................20
Deutsche Bank..........................................18
Direct Line..................................................23
EFG International....................................21
Eni.......................................................................8
Eurostar...........................................................4
Evraz................................................................31
Facebook....................................................6,11
Freeport-McMoRan.........................20,23
General Electric.......................................30
General Mills.............................................30
General Motors..................................19,20
Glencore.......................................................20
Goldman Sachs...................................17,22
Google.......................................................11,21
Groupo Bimbo...........................................16
Halifax..............................................................3
Hays.................................................................31
Hewlett-Packard........................................6
Honda.............................................................19
Hugo Boss..................................................20
Hypermarcas..............................................16
IG Group.......................................................22
Inlingua............................................................9
Investindustrial.........................................21
J Safra Sarasin..........................................21
JD.com............................................................18
JPMorgan.....................................................18
Johnson & Johnson..........................18,31
Julius Baer...................................................21
Lazard.............................................................21
McDonald’s..................................................21
Medtronic.....................................................18
Mercedes-Benz........................................20
Microsoft.........................................................6
Morgan Stanley...................................17,31
National Security Agency ..................4
Nationwide....................................................3
Nestlé............................................................30
Next.................................................................23
Ocado........................................................16,31
Oliver Wyman............................................18
Onion, The...................................................19
Pernod Ricard...........................................20
Persimmon...................................................31
Petrobras......................................................21
Pfizer...............................................................18
Ping An Insurance...................................11
Porsche.........................................................20
Prudential....................................................23
Randstad.......................................................31
RasGas.............................................................8
Reliance Communications..................21
Reliance Industries.................................21
Reliance Jio.................................................21
Renault...........................................................19
Richemont...................................................20
Rightmove......................................................3
Rio Tinto..........................................16,20,23
Rocket Internet.........................................18
Royal Bank of Scotland......................22
Royal Mail......................................................4
Rémy Martin..............................................20
Saudi Aramco..............................................8
Sheffield Forgemasters Int’l...............4
Sky....................................................................21
Taiwan Semiconductor........................20
Tata Steel.......................................................4
Taylor Wimpey..........................................31
Tencent...........................................................11
Tiffany............................................................31
TripAdvisor..................................................11
Tui.....................................................................31
Twitter............................................................21
UBS.............................................................18,21
Uber...................................................................6
UniCredit......................................................32
Unilever.............................................16,21,22
Unite Group................................................17
UnitedHealth..............................................31
Univision.......................................................19
Vale.................................................................20
Vice..................................................................19
Vodafone......................................................21
Volkswagen..........................................19,20
Vox...................................................................19
Wellcome Trust........................................22
Wells Fargo.................................................18
Zalando..........................................................16
Sectors
Automobiles...................................19,20,23
Banks...............................................8,18,21,32
Financials...............................................30,32
Food & Beverage...................................30
Healthcare...................................................18
Industrials......................................................4
Insurance......................................................23
Media......................................................9,19,21
Mining.....................................................20,23
Personal & Household Goods..20,22
Retail...............................................................23
Technology...........................................18,20
Telecoms.......................................................21
Transport.......................................................4
People
Ambani, Anil...............................................21
Ambani, Mukesh......................................21
Bolloré, Thierry.........................................19
Costolo, Dick...............................................21
Cumenal, Frederic...................................31
Donofrio, Paul............................................18
Dorsey, Jack................................................21
Esteves, André..........................................21
Fairweather, Carol..................................20
Foley, John..................................................23
Honeyman, Graham.................................4
Kalanick, Travis...........................................6
Latsis, Spiros..............................................21
Lee, Isaac......................................................19
Moynihan, Brian.......................................18
Müller, Matthias........................................19
Nadella, Satya.............................................6
Nicandrou, Nic..........................................23
Pitkethly, Graeme...................................22
Polman, Paul..............................................22
Samwer, Oliver..........................................18
Sandberg, Sheryl.......................................6
Schafer, David...........................................19
Spencer, Richard......................................17
Walsh, Sam..................................................23
Wells, Mike..................................................23
Whitman, Meg.............................................6
Winterkorn, Martin.................................19

© The Financial Times Limited 2016 Week 3

18 ★ FINANCIAL TIMES Wednesday 20 January 2016

COMPANIES
INSIDE BUSINESS
Healthcare
ASIA

J&J to axe 3,000 jobs at sluggish division Henny

US healthcare group trims
medical-devices unit amid
effort to save $1bn in costs
DAVID CROW — NEW YORK
Johnson & Johnson, the world’s largest
healthcare company, said it would cut
3,000 jobs at its medical-devices unit as
part of a restructuring effort designed to
will be unaffected. J&J said the move
would result in annual savings of
between $800m and $1bn, most of
which will be achieved by the end of
2018. It said the moves would result in it
booking a restructuring charge of
$2bn-$2.4bn, with roughly $600m fall-
ing in the fourth quarter of 2015.
The company’s sales and profit tar-
gets are unaffected, it said in a state-
ment, adding that the cuts would allow
adding that the cuts would boost its
competitiveness and profitability.
Shares in J&J, which has a market
value of roughly $270bn, were up 1.3 per
cent in early trading in New York. The
company is scheduled to release fourth-
quarter earnings next Tuesday.
The medical-devices business, one of
three J&J business units alongside phar-
maceuticals and consumer products,
has become a drag on the company’s
Sender
highly fragmented, with no single player
having more than 30 per cent market
share. Healthcare systems around the
world have also tried to push down the
cost of medical devices to better cope
Many reasons to hope
with an ageing population.
J&J has dismissed suggestions that it
that China’s success
$375bn
The value of the
should split up the business as Abbott
did when it hived off its pharmaceuti-
cals company as AbbVie in 2014.
story continues
world’s highly Pfizer, the world’s second-largest

save up to $1bn a year in costs.
The cuts equate to roughly 6 per cent
of the company’s medical-devices work-
force, and will be heaviest in the ortho-
paedics division, which makes hip
replacements, as well as its surgical and
cardiovascular segments.
J&J’s contact-lens unit and diabetes
segment, which makes insulin pumps,
it to prioritise high-growth products and growth in recent years. In the first three
gradually to shrink its medical-devices quarters of last year it posted sales of
unit while “maintaining high quality $18.7bn, a 10 per cent decline compared
standards”. with the same period in 2014.
“The bold steps we are taking today J&J has faced fierce competition from
are to evolve our offerings, structure Medtronic, the world’s largest stan-
and footprint and increase our invest- dalone medical-device maker, as well as
ment in innovation,” said Gary Pruden, Abbott and many smaller operators.
chairman of J&J’s medical-devices unit, The $375bn medical-device market is
Banks. Energy loans
B
fragmented
medical-device healthcare company, has also said that it
market will consider splitting itself up after it y the end of this year JD.com, a Chinese com-
has completed the $160bn acquisition of pany often likened to Amazon, will employ
Allergan. 150,000 people, almost four times as many as it
$18.7bn J&J has instead focused on “pruning” did two years ago. These workers, who mostly
Sales in the first its medical-devices unit, and earlier this deliver packages across the mainland by bicycle
three quarters of
last year by J&J’s year completed the $2bn sale of Cordis, or car, are hardly living what President Xi Jinping would
medical-devices which makes cardiovascular catheters call the Chinese dream. Still, it is better than working for a
unit, a 10% decline and stents, to Cardinal Health. low-end textile manufacturer or one of the steamy elec-
tronics factories across the border from Hong Kong.
The expansion of companies such as JD helps explain
how the mainland has continued to create jobs at an
impressive rate, even as economic growth has slowed.
China generated 7.2m new jobs between January and June
last year, better than it managed the year before, when

BofA flags up $700m threat from oil’s collapse
Second-largest US bank sets
aside $500m in reserves to
soak up losses from sector
ALISTAIR GRAY — NEW YORK
Bank of America became the latest bank
to disclose damage done by the tum-
bling oil price, estimating that a persist-
ently low crude price could cost it about
$700m over the next two years.
Concerns about BofA’s energy expo-
sure overshadowed better than forecast
earnings published yesterday, which
were helped by cost cutting and a boost
in sales from its trading business.
BofA, which has $21.3bn in energy-
related loans, followed rivals JPMorgan
Chase, Citigroup and Wells Fargo in cau-
tioning about loans to oil and gas com-
panies.
The second-largest US bank has set
aside $500m in reserves to soak up
losses from the sector. Paul Donofrio,
finance director, forecast that they
could come to $700m if oil stayed at $30
a barrel for nine quarters.
But he added: “There are a lot of peo-
ple who are helped by oil prices — that
helps our asset quality, not only the con-
sumer side but also in places like India
and manufacturers all around the
world.”
Shares in BofA fell 3 per cent to
$14.03, taking losses for the year so far
to 16 per cent. Brennan Hawken, an ana-
lyst at UBS, said: “The energy book is
extremely manageable [for BofA].
What has people worried is how the
credit losses could migrate into other
parts of the loan book.”
Overall, BofA boosted quarterly prof-
its by almost a tenth. Cost-cutting
helped improve the bank’s perform-
ance, with expenses down 2 per cent
from a year ago.
The headcount has fallen about
10,000 over the past year.
The bank also bucked a downward
trend across much of Wall Street to
boost sales from its trading business.
Legal Notices
Concerns over BofA’s energy exposure overshadowed better than forecast earnings results yesterday — John Taggart/Bloomberg
Revenue from its sales and trading oper-
ation rose 11 per cent from a year ago.
Overall sales, net of interest expense,
improved 4 per cent to $19.8bn.
The bank is short of its target for gen-
erating returns. Its return on average
tangible common equity of 7.3 per cent
was short of its 12 per cent goal.
For years it disappointed investors
with hefty mortgage losses and litiga-
tion problems. But Mr Donofrio said it
was the fourth consecutive quarter the
bank had produced higher earnings.
“We’ve been operating in the past six
years in an extraordinary market envi-
Big impact Global banks will have to spend
Banks to between €40m and €120m each to
implement global regulators’ latest
spend up rules on trading book capital, a study
to €120m from consultants Oliver Wyman claims.
on latest The analysis also says regulators
Basel rules have “drastically understated” the
impact the new rules will have on the
capital requirements for banks’ trading
operations. These divisions already
have seen their returns cut by higher
capital requirements imposed in the
aftermath of the financial crisis.
The latest rules — designed to
prevent banks from taking on too
much risk as they buy and sell
securities from clients — were
finalised by the Basel Committee on
Banking Supervision this month.
The Basel Committee estimates the
new rules will increase capital
requirements by a median rise of 22
per cent. But Rebecca Emerson, Oliver
Wyman’s UK head, said conversations
with clients showed that the banks
have widely different estimates of the
amount of money it will cost to
implement them. “It’s one of the most
expensive regulatory programmes
that banks are currently dealing with,”
she said. Laura Noonan
ronment with [interest] rates that have
been unprecedentedly low,” he said.
“We feel comfortable about getting to
our goals,” added Mr Donofrio, who
replaced Bruce Thompson in August.
“We’re going to get there. It’s just going
to take time and we’re going to need a lit-
tle help from rates.”
The bank, based in Charlotte, North
Carolina, generated net income of
$3.3bn in the last three months of 2015,
up 9 per cent from a year ago. That was
equivalent to earnings per share of 28
cents, up from 25 cents a year earlier.
Analysts had expected 27 cents.
Two accounting charges weighed on
the results. Pre-tax income took a
$600m hit after the bank decided to
redeem $2bn worth of trust preferred
securities. An exceptional UK tax
charge cost it another $300m.
The fourth-quarter figures cap an
eventful year for the bank. Brian Moyni-
han, chairman as well as chief execu-
tive, won a shareholder vote over a cor-
porate governance proposal that would
have taken away his chairmanship.
BofA was also required to resubmit its
“stress test” to the Federal Reserve. In
December, the US central bank waved
through the bank’s capital plan, allow-
ing it to pay a 20 cent annual dividend
and buy back $4bn worth of stock.
official statistics show the economy was growing faster.
“The quality of growth is more important than the speed of
growth,” says a report from Citic Capital.
Many jobs are paying more, too. Except in the perenni-
ally depressed north-east of the country, incomes have
been rising by between 10 and 15 per cent a year. In India,
and most developed markets, by contrast, incomes have
barely risen at all. Better-paid workers should also mean
China can rely more on domestic consumption, instead of
pouring yet more concrete in a country that has already
built too many steel mills and cement plants.
As Chinese manufacturing costs rise and export markets
soften, the hope is that rising demand for labour-intensive
services can help absorb workers who are not needed in
factories, which are increasingly automated and no longer
as busy as they were.
This hope is felt far beyond Beijing. If China’s fledgling
consumer economy fails to take flight, Beijing will keep its
factories busy by allowing the renminbi to fall. Cheaper
Chinese exports will mainly hurt workers in Bangladesh
and Vietnam, so far the principal beneficiaries of rising
costs in their giant neighbour.
But the effects will be felt in emerging markets as far
afield as Brazil, Peru and South Africa. A more dramatic
depreciation of the redback would inflict even more stress
on emerging markets whose prospects and currencies are
already under pressure. Even developed markets in the
west would not be immune.
“Investors are coming to
terms with what a Chinese
A renminbi
renminbi devaluation means devaluation
for western markets,” says
Albert Edwards, a global
would mean
strategist at Société Générale ‘global deflation
in London and longtime
bear. “It means global defla-
and recession’
tion and recession. The west-
ern manufacturing sector will choke under this imported
deflationary tourniquet.”
Cheap imports from China are not all that western com-
panies have to fear; high-quality ones are even more worri-
some. Here, domestic producers have been making formi-
dable progress. Well-heeled entrepreneurs and investors
in China who two years ago were sporting iPhones have
switched their allegiance from Apple to Huawei. That is
not because of price but quality.
The global supply chain that China dominated in recent
years is today becoming an internal Chinese supply chain,
especially in electronics. More and more products that
were once assembled in vast Chinese factories using com-
ponents shipped in from afar are now made entirely in
China. Some economists now speak of the “de-
globalisation” of manufacturing. China’s overall trade vol-
ume is estimated to have shrunk by 2 per cent last year,
although its trading partners registered sharper drops.
Services now contribute more to Chinese growth than
industry, according to JPMorgan’s chief China economist
Haibin Zhu, who talks of a “two-speed economy”.
December was the fifth consecutive month when
surveys of purchasing managers in China’s manufac-
turing industry found more pessimists than optimists,
with output, new orders and export orders all falling,
according to JPMorgan. Equivalent surveys in the serv-
ices sector have been in positive territory, but the
good cheer may not last.
“When an economy is hurtling toward recession,”
the pessimistic Mr Edwards points out, “it is almost
always the manufacturing sector that takes the less
volatile services sector by the hand and leads it into a
recessionary underworld.”
It is not clear whether China can keep its recent success
going. But many have reason to hope so. As turmoil in glo-
bal markets has shown, what is bad news for China is even
worse for the rest of the world.
henny.sender@ft.com

Technology

Rocket raises $420m to mirror internet start-up investments

JAMES SHOTTER — FRANKFURT
Rocket Internet, the German start-up
incubator, said it had raised $420m for
a fund to invest alongside it in fledgling
internet companies.
Oliver Samwer, chief executive, said
yesterday that outside investors had
$370m committed and Rocket had put
$50m into the fund, called Rocket Inter-
net Capital Partners.
The fund, which Rocket said would
run for about 10 years and which would
be limited to investing in companies in
which Rocket is investing, is targeting a
total size of $500m.
Mr Samwer declined to name any of
the investors who had put money into
the fund but said that they included
pension funds, foundations and asset
managers, and that 95 per cent of them
came from the US and Europe.
Rocket’s core shareholders include
Mr Samwer and his brothers; Kinnevik,
the family-run Swedish investment
company; and Philippine Long Distance
Telephone Company.
Rocket, which listed in 2014, has
become one of the most prominent
businesses on Berlin’s start-up scene.
However, its shares have lost two-thirds
of their value since hitting a peak of
€57.50 last February amid questions
about the profitability of the companies
in which it is invested. Rocket said in
September it would not raise further
capital in the next three years and
would focus on its existing companies.
Mr Samwer said the fund would not
dilute Rocket shareholders and argued
it would give Rocket greater influence in
the companies in which it and the fund
were invested.
The fund will invest $4 for every $1
that Rocket invests. Assuming that it
reaches its $500m target, Rocket’s total
exposure to the companies in which it
and the fund invest will be 28 per cent.
Mr Samwer said the fund would also
be beneficial for the start-ups in which it
invested because it would be able to dis-
‘Our companies will have
access to more capital
and be less reliant on
individual co-investors’
burse money more quickly than other
investors as a result of having access to
Rocket’s due diligence.
“Our companies will have access to
more capital and be less reliant on indi-
vidual co-investors, thereby allowing
them to fund in a faster and more effi-
cient manner. This will greatly enhance
the entrepreneurial flexibility of our
portfolio companies,” Mr Samwer said.
However, some analysts were not con-
vinced. Neil Campling from Aviate Glo-
bal said the move “does little, in our
view, to change the risks of the Rocket
model”. At the centre of those risks was
“increasing concern of [last portfolio
value] calculations (Rocket’s own),
business momentum and opaque fund-
ing structures,” he wrote. He added:
“We remain short sellers.”
Wednesday 20 January 2016
Automobiles. Emissions push
Renault plans
recall of 15,000
cars amid probe
Group to modify Captur SUVs
and offer software update for
some of its diesel vehicles
MICHAEL STOTHARD — PARIS
ANDY SHARMAN — LONDON
Renault is recalling more than 15,000
cars and offering to update hundreds of
thousands more after the French gov-
ernment found that some of the com-
pany’s vehicles exceeded limits on
emissions.
The French carmaker has been under
pressure after it revealed last week that
three of its offices in France had been
searched by government fraud investi-
gators as part of a probe into vehicle
emissions.
Shares in Renault fell on Thursday
and Friday amid investor fears that the
company would be embroiled in a simi-
lar scandal to the one that has hit
Volkswagen. In September, the German
carmaker admitted installing software-
based defeat devices in diesel-powered
vehicles that enabled cheating during
official tests for emissions of harmful
nitrogen oxides.
Ségolène Royal, the French environ-
ment minister, said yesterday that
Renault and other carmakers had not
been using similar software to VW, but
some of their vehicles did have unac-
ceptably high emissions on the road.
Renault, which was hauled in front of
a government-appointed commission
on Monday to explain the emissions
results, has now offered owners of cer-
tain diesel vehicles a software update to
improve its pollution control system. Up
to 700,000 vehicles could be eligible for
the modifications.
This is part of Renault’s wider efforts
to close the gap between its vehicles’
emissions in official laboratory tests and
in real world driving conditions. A full
strategy is due to be announced in
March.
Renault also explained that a “calibra-
tion error” on the pollution control sys-
tem for a batch of diesel-powered Cap-
tur sport utility vehicles meant there
Renault
Share price (€)
100
90
80
70
60
Jan 2015 Jan
2016
Source: Thomson Reuters Datastream
Media
Univision takes slice of Onion
SHANNON BOND AND
MATTHEW GARRAHAN — NEW YORK
Univision, the largest Spanish-
language broadcaster in the US, has
taken a 40 per cent stake in The Onion,
the satirical news site.
The deal is part of a trend of broadcast-
ers investing in new digital businesses to
reach a generation of young Americans
more interested in their smartphones
and the internet than television.
Univision’s 40 per cent stake values
The Onion at less than $100m, accord-
Univision chief
news officer
Isaac Lee: ‘Comedy
is playing an
expanding role in
our culture’
ing to a person familiar with the matter.
The deal includes an option for Univi-
sion to buy the remaining shares in the
company that it does not own.
Isaac Lee, chief news and digital
officer of Univision, said: “Comedy is
playing an expanding role in our culture
as a vehicle for audiences to explore,
debate and understand the important
ideas of our time.”
“It has also proven to be an incredibly
engaging format for millennial audi-
ences, and is expected to play a key part
in the 2016 presidential election process
via our robust content offerings.”
Across the media industry, TV own-
★ FINANCIAL TIMES 19
COMPANIES
US feedback
VW dispels speculation
over chief’s future
Volkswagen yesterday moved to
dispel questions over the future of
its newly-appointed chief executive,
saying Matthias Müller’s job was
never in doubt following a difficult
trip to the US last week.
Mr Müller, who succeeded Martin
Winterkorn at the German
carmaker in September when the
emissions scandal broke, attracted
criticism on his first visit to the US
as top manager by appearing to
was not proper elimination of NOx suggest in a radio interview that
emissions. the company “didn’t lie” to
Production of the faulty Captur SUVs regulators.
began in July, and the problem was VW later asked to redo the
detected in September, at which point a interview, but Mr Müller struggled
defect in the manufacturing process was with the bigger task of returning to
fixed. But Renault said it was recalling Germany with a plan agreed with
more than 15,000 Captur SUVs made US regulators on how to fix cars
before that point for modifications. affected by software designed to
The two announcements were part of rig emissions tests.
a strategy to win back customer trust After a meeting of the steering
and prove to investors that there was no committee of VW’s supervisory
scandal brewing at the company. board yesterday, in which Mr Müller
“We’re not cheating, we are meeting gave an update on progress in the
the norms, and we are not trying to trick US, VW said: “The position of
the consumer,” said Thierry Bolloré, Müller was never up for discussion.
Renault’s chief competitive officer. Any other speculation is baseless
Shares in Renault closed up more and is expressly rejected.”
than 3 per cent at €76.62 yesterday, but Andy Sharman
are down almost 12 per cent since news A French probe has found unacceptable emissions in some Renault vehicles but no cheating software — Chris Ratcliffe/Bloomberg
of the raids last Thursday.
One analyst said the cost of the Captur
recall and the wider software update
was “negligible” compared to the mar-
ket value that had been wiped off
Renault in recent days. He added that
“uncertainty is driving the share price”
at the company.
The independent commission set up
by the French government after the VW
scandal to examine vehicle emissions
has only tested 11 of the 100 cars it is
planning to scrutinise, so analysts and
investors think there could be more rev-
elations to come.
The VW affair sharpened the focus on
European carmakers and the wide dis-
crepancy between vehicle pollutants
measured during outdated lab tests and
in real world driving conditions.
The difference is partly because car-
makers employ techniques to achieve
optimal performances in the lab tests,
including dispensing with equipment
such as entertainment systems.
This is in principle perfectly legal, but
in the wake of VW’s disclosure that it
used defeat devices, certain cars from
rival manufacturers have aroused sus-
picion. For example, General Motors’
European arm, Opel, on Monday came
under renewed attack for the perform-
ance of its Zafira people carrier in tests.
Belgian television claimed the com-
pany had been quietly correcting the
Zafira’s emissions performance through
software updates, although Opel dis-
missed the allegations as “false”.
Following the VW scandal, many
European governments have started
their own inquiries into vehicle emis-
sions, but France is the first EU country
to take a carmaker to task.
Paris is at the same time anxious not
to destabilise Renault. The state has a 20
per cent stake in the group, and the car
industry, directly or indirectly, accounts
for about one in 10 French jobs.
Ms Royal was quick last week to say
investors should “rest easy” over
Renault because while emissions
exceeded permitted limits, it was not a
VW-type scenario because software-
based defeat devices were not involved.
ers, publishers and digital groups are
vying to create channels and pro-
grammes that draw in millennials — the
generation born roughly between 1981
and 1997 who passed the baby boomers
last year to become the US’s largest liv-
ing generation.
Companies including Vice, Vox and
BuzzFeed have won investment and
advertising dollars from backers and
brands that are keen to reach a younger
audience whose media habits are
diverging from that of their predeces-
sors.
Like those digital publishers, The
Onion generates revenue from an in-
house department creating sponsored
or native content for advertisers, signing
deals with brands including Burger
King, Bud Light and Honda.
The Onion has been owned by David
Schafer, a fund manager, since 2003. It
was founded as a print publication
focused on college humour in Madison,
Wisconsin in 1988.
It has since moved to New York and,
most recently, to Chicago, and stopped
printing a physical paper in 2013. Its
website draws 10.6m unique visitors a
month, according to Quantcast, with an
audience that tends to be male and aged
18-34.
Univision’s owners, Saban Capital,
Madison Dearborn, Providence, Tho-
mas H Lee and TPG, are gearing up to
raise more than $1bn in an initial public
offering that could value the company
at as much as $20bn including debt.
20
Fears grow that few can escape China’s tremors
Global industries are exposed to a slowdown that threatens the country’s neighbours, trading partners and suppliers
SARAH GORDON
Markets around the world have been
roiled this month by uncertainty about
China’s economic growth and the inef-
fective reaction by local authorities to
the turmoil.
While traders have taken most of the
pain so far, there is a wider — more insid-
ious — impact that is spreading to com-
panies far behind China’s shores.
With the country’s economy growing
at its slowest pace since 1990, according
to official statistics released yesterday,
some industries, including mining and
cars, are far more exposed to the slow-
down than others.
However, few are likely to escape
some reshaping of their future pros-
pects as a result.
Outside Asia, Latin America is partic-
ularly vulnerable with 10 per cent of its
exports headed for China, and Europe
will feel the pinch more than the US.
“China has set off a major correction
and it is going to snowball,” warned
Andrew Roberts, head of credit at Royal
Bank of Scotland, in a recent note.
Turbulent financial markets rarely
have a direct impact on the corporate
sector in China because local companies
largely do not fund themselves there.
But the perception that the market
turmoil is beyond the control or influ-
ence of the Chinese authorities will, say
analysts, influence confidence and,
thus, future decisions over when and
where to invest.
“What we are finding out in recent
weeks is the indirect impact which goes
via the confidence effect,” says Marie
Diron, an analyst at Moody’s, the credit
rating agency.
Market performance also reflects
more profound concerns about China’s
future growth. It is no longer a matter of
debate whether the economy is slowing,
but of measuring its effects.
China consumes about 50 per cent of
some raw materials, and so far, its eco-
nomic slowdown has therefore had the
most acute impact on commodity-
related sectors.
For many companies, the most imme-
diate effect is on demand. But the over-
exuberant investment that has charac-
terised many commodity sectors, as
well as the shipping industry, will take
years, not months, to unwind.
“For the over-invested global indus-
tries, there is a real supply imbalance,
much of it relating to China in steel,
metals and mining, oil, and both con-
tainer and bulk shipping,” says Paul
Watters of Standard & Poor’s.
The regional impact is also broad.
Europe’s direct trade exposure to China
is moderate but, if re-exports are
included, says UBS, the exposure is
almost doubled. China buys about 8 per
cent of the EU’s exports, with Germany’s
share by far the highest, followed by
Finland, Austria and France.
Germany’s auto companies derive
between 15 and 30 per cent of operating
earnings and cash flow from Chinese
sales. Analysts also warn that the
impact on manufacturers and suppliers
is obscured by the number of joint ven-
tures through which western companies
operate.
“Lots of European and US suppliers
are operating in China via JVs so the
Business Opportunities
Readers are strongly recommended to take appropriate professional advice before entering into obligations.
★ FINANCIAL TIMES
CHINA
Chipmakers
Slowing Chinese
demand last year
cast a shadow
over prospects
for the global
semiconductor
industry
Carmakers
A crackdown on
ostentation has
hit the likes of
Bentley and
Rolls-Royce,
whose sales fell
dramatically
impact may be diffused or delayed,”
Global semiconductor market says Ms Diron.
China’s share Global total Specific companies are also paying
(%) ($bn) the penalty — even if only temporary —
of their big bets on China. Global Coun-
60 300 sel, the political consultancy, estimates
that half of Volkswagen’s revenues are
derived from the country. Cognac pro-
55
200 ducers have also been hit by the Chinese
government’s anti-extravagance cam-
50 paign. According to UBS, Rémy Martin
earns a little less than a third of its oper-
100
45 ating profit in China, while Pernod
Ricard has about 12 per cent.
There are also broader ripple effects.
40 0 As China’s economy falters, so do those
2009 10 11 12 13 14 of its neighbours and trading partners,
Source: PwC in addition to its suppliers. The most
affected sectors in the region are oil, gas
and chemicals, analysts suggest, but
slowing Chinese GDP is also likely to
reduce disposable income and thus, for
example, affect demand for air travel
and hotel rooms.
For many western companies China
and the emerging markets in general
have been a focus for investment in
recent years — the one bright spot in a
slow-growing world.
For Gareth Williams, an S&P analyst,
the argument for investing in China has
not been diluted by recent events. “It
changes the balance of which industries,
and makes [the decision] more com-
plex,” he says. “But China is still growing
at a relatively fast rate.”
Other analysts concur that the gloom
may be exaggerated. Lower oil and com-
modity prices, mainly driven by events
in China, have helped many companies
globally, particularly in Europe and the
US. Meanwhile, China’s transition
towards an economy more driven by
domestic demand will not help mining
companies — but it may help retailers.
If commodities have been the hardest
hit so far, other global industries are also
highly exposed. Semiconductors, autos,
consumer durables, technology hard-
ware and capital goods are all feeling the
pinch.
Semiconductor makers
At Taiwan Semiconductor Manufactur-
ing Company’s annual results presenta-
tion last week, executives of the world’s
biggest chip foundry came in for heavy
questioning, writes Simon Mundy. The
concern: last month’s announcement of
a $3bn investment in Nanjing, to capi-
talise on “the rapid growth of the Chi-
nese semiconductor market”.
Chinese manufacturers accounted for
nearly all of the 48 per cent increase in
semiconductor sales from 2009-14.
Semiconductor demand for non-Chi-
nese companies, meanwhile, was
shored up by surging demand for their
electronic devices in the country —
notably smartphones, for which it is
now by far the biggest market.
But that growth in Chinese demand
slowed markedly last year, casting a
shadow over prospects for the global
semiconductor industry. The biggest
factor was a sharp contraction in the
growth of the country’s smartphone
market: having grown at a double- or
triple-digit pace for five years, Chinese
smartphone shipments may have
grown by as little as 1.2 per cent in 2015
according to IDC, the research group.
This is largely a result of an increas-
ingly saturated market. But Steven
Pelayo, an analyst at HSBC, says the
slowdown has been much faster than
anticipated, suggesting a link to China’s
broader economic deceleration.
Despite this tailing off, demand for
semiconductor-powered products is
substantial. Chip imports amounted to
$241bn in 2014, more than any other
category. Beijing is pursuing a Rmb1tn
($152bn) investment plan to strengthen
domestic production capacity.
“Even though the environment may
not be as good as before, China’s invest-
ment in semiconductors will continue,”
says Jian-Hong Lin, an analyst at Trend-
force. “And every semiconductor com-
pany is still focused on China. They
want to keep their position in the mar-
ket there.”
Carmakers
Over the past decade, China provided
sunny skies for the world’s automakers,
Global luxury-goods
market 2015
Breakdown by consumer nationality
(%)
Other Asian Rest of world
Japanese 8
Chinese
10
30
10
18 24
European American
Source: Altagamma/Bain, Exane BNP Paribas
Luxury items
A government
crackdown on
corruption and
the slowdown
have proved
challenging for
some companies
Mining
The slowdown
has been
particularly hard
on producers of
commodities
such as iron
ore and coal
as the likes of Audi, Porsche, BMW and
Mercedes-Benz became used to selling
lots of cars and charging large sums for
them, writes Andy Sharman.
But clouds rolled in last year and for-
eign brands across the price spectrum
felt the impact.
A crackdown on ostentation hit the
likes of Bentley and Rolls-Royce, whose
sales fell dramatically in China last year.
Big fluctuations in the stock market
diverted money away from car pur-
chases, according to the local industry
association, and overseas car marques
were buffeted by a shift in consumer
taste towards domestic brands.
Meanwhile, the slowdown in the
wider economy put the brakes on over-
all car sales, and registrations fell for
three consecutive months between June
and August, sharpening fears of over-
supply and price wars. Then the Chinese
government stepped in. Beijing halved
the vehicle tax on cars with engines of
1.6 litres or smaller — a category that
accounts for about 70 per cent of new
vehicle sales in the country. That
stopped the rot and car sales returned to
solid growth from October.
The tax cut is due to run until the end
of 2016, but analysts remain cautious.
Their fears are less about sales growth
than about the returns that can be
expected by Volkswagen and General
Motors, which each rely on China for
more than a third of operating profits.
Robin Zhu, an analyst at Bernstein
Research, says the retail prices are still
headed downward for cars in China,
with intense competition, dealer “over-
crowding” and a boom in budget SUVs.
Tough new emissions rules due in
2017 will increase the costs for manufac-
turers selling in the country.
Contrary to the argument made by
China passenger-car sales
Seasonally adjusted annual rate (m)
30
20
10
0 curb spending may lead to under-
2005 07 09 11 13 15
Source: Bloomberg
Wednesday 20 January 2016
many auto executives, Mr Zhu sees little
room for expansion in lower-tier urban
areas, saying that most brands already
sell vehicles in China’s “credible cities”.
Luxury-goods industry
One in three luxury goods are bought by
the Chinese, a figure that makes the
industry especially sensitive to develop-
ments within China. The economic
slowdown and the government crack-
down on corruption have hit luxury
goods companies hard, writes Schehera-
zade Daneshkhu.
Hugo Boss pointed to “continued
challenges” last week as it reported a
double-digit decline in annual sales in
China — its most profitable market. The
company has suffered from overexpan-
sion in the country and its stores are not
all in the best locations, according to
analysts at HSBC.
But Cartier-owner Richemont and the
UK’s Burberry were more upbeat last
week in quarterly trading updates.
The Swiss group said the rate of sales
growth in mainland China had “contin-
ued to improve”, while Burberry said
that it was too soon to say whether its
rise in mainland sales was the start of a
sustained recovery.
The recent stock-market turmoil in
China “affects sentiment”, says Carol
Fairweather, Burberry finance director,
“so we focus on marketing innovatively.
We can’t control what’s happening in the
wider macro situation”.
Most Chinese luxury purchases are
made abroad — as much as 80 per cent,
according to Bain, the consultancy. But
tourism patterns are shifting, with
fewer Chinese visiting Hong Kong,
where some feel unwelcome, while
more are starting to favour Japan. Burb-
China burden
Relative revenue exposure by region
(%)
0 10 20 30 40
Eastern Europe,
Middle East
and Africa
Western Europe
North America
Latin America
Proportion of most recently reported revenues
directly or indirectly exposed to China
Source: Standard & Poor’s
erry’s sales in Hong Kong dropped 20
per cent in the past quarter compared
with the same period in 2014.
Claudia d’Arpizio, a partner at Bain,
says that even with a flattening econ-
omy, the desire for luxury goods among
Chinese consumers remains strong.
“Now the real question is profitability,”
she says. “Brands have opened stores
rapidly, sometimes choosing the wrong
locations and many of them are in the
process of resizing in terms of location
and format.”
Global miners
The consequences of China’s slowdown
for the mining sector have been direct
and brutal, writes James Wilson.
The country rose from being an insig-
nificant market to account for half of
global demand for some commodities.
As supply lagged behind, the resulting
high prices sucked miners into a “super-
cycle” of ambitious investment.
Now global groups such as Rio Tinto,
Vale and BHP Billiton are confronting
much more subdued Chinese demand —
just as many of the mines built during
the boom years have begun producing
for global markets. The slowdown has
been particularly hard on producers of
commodities such as iron ore and coal,
which were poured into building China’s
cities, power plants and railway lines.
BHP, the world’s largest miner by
market capitalisation, says it no longer
expects to invest in iron ore or coal.
If China’s consumer market starts
growing rapidly again, some metals and
minerals should benefit. Copper, for
example, is used in cars and electrical
goods. But in the meantime, large cop-
per miners such as Glencore and Freep-
ort-McMoRan are struggling. Diamond
miners including De Beers, owned by
Anglo American, have been caught out
by slowing growth, which has left the
industry overstocked.
At the moment there is no market
that can replace China, so groups are
having to consider closing unprofitable
mines to cut supply. But shutting sites
can be expensive, so there is a scramble
to cut costs or sell off mines instead.
In the short term, both asset sales and
cost cuts keep more mines in business,
exacerbating the oversupply problem
and putting more pressure on prices.
But in the long term, miners’ desire to
investment in production — and start
another of the sector’s inevitable cycles.
See Lex and Inside Business
Wednesday 20 January 2016
Banks
BTG Pactual
nears offloading
Swiss lender BSI
EFG emerges as highest
bidder amid rush to sell
Brazilian bank’s assets
MARTIN ARNOLD — LONDON
RACHEL SANDERSON — MILAN
A Swiss private bank owned by Brazil’s
BTG Pactual is close to changing hands
for the second time in a year — this time
being sold to EFG International, which
is controlled by the Greek billionaire
Spiros Latsis.
EFG, the Zurich-based private
banking group, has emerged as the
highest bidder in the auction of BSI
and is expected to enter exclusive
talks on a deal that is likely to value
BTG has a liquidity crisis
and it is concerned about
the reputational impact of
André Esteves’s arrest
it above SFr1.2bn (£840m), people
familiar with the matter say. BTG
and EFG declined to comment.
BTG has been rushing to sell assets
since investor confidence was knocked
by the arrest late last year of its founder
and chief executive André Esteves over
alleged links to the corruption scandal
at energy group Petrobras. The auction
is being hurried through by advisers
Lazard because BTG has faced a liquid-
ity crisis, and it is concerned about the
reputational impact of Mr Esteves’s
arrest on BSI, one of the people said.
The likely deal would mark an accel-
eration of consolidation in Swiss private
banking, which has long been predicted
by bankers, but is starting to take shape
after Union Bancaire Privée bought
Telecoms
Ambani to launch $2.2bn rights issue
JAMES CRABTREE — MUMBAI
Billionaire tycoon Mukesh Ambani is
set to launch India’s second-largest
rights issue, raising up to Rs150bn
($2.2bn) to fund a portion of the costs
of his forthcoming Reliance Jio wireless
broadband venture.
Mr Ambani’s long-awaited Jio business,
which is expected to launch around
April, follows the largest private sector
investments in Indian corporate his-
tory, in which the industrialist’s wider
Reliance Industries conglomerate has
ploughed in at least $16bn.
Jio’s arrival has been closely watched
in India’s corporate sector, in part
because it marks the biggest and riskiest
bet in the career of Mr Ambani, who is
the country’s richest man and arguably
its most high-profile business figure.
The launch is also long-delayed — it
was first mooted in 2012 — while details
of the business, which will provide high-
speed broadband connections to India’s
growing population of smartphone
users, have been shrouded in secrecy.
Jio’s arrival carries significant corpo-
rate symbolism in India, as it marks Mr
Ambani’s re-entry into the country’s tel-
Media
Ex-Twitter chief founds fitness platform
HANNAH KUCHLER — SAN FRANCISCO
Twitter’s former chief executive is tak-
ing on two new jobs, founding a plat-
form to improve users’ personal fitness
and joining Index Ventures as a venture
partner.
Dick Costolo, who left his position at the
top of the messaging platform last year,
tweeted that he wanted to create a sys-
tem that would connect the fitness
industry’s specialist studios and multi-
tude of wearable tracking devices to
Coutts International from Royal Bank of
Scotland last year.
BTG, which yesterday reported a 45
per cent rise in quarterly net income, is
confident of recouping at least the
SFr1.23bn it paid for BSI last year. The
move is likely to be funded with cash
and shares, giving BTG a stake in EFG.
The Swiss lender, created 139 years
ago as Banca della Svizzera Italiana, is
based in the Italian-speaking region of
Ticino and focuses on wealthy north
Italian clients. It is ranked among the 15
biggest Swiss private banks with
SFr92.3bn of client assets under man-
agement at the end of 2014.
UBS, the Swiss bank, joined a consor-
tium bidding for BSI, which included
Italian private equity group Investin-
dustrial and several cantonal banks, led
by Banca dello Stato del Cantone Ticino.
Other bidders for BSI include Julius
Baer, J Safra Sarasin and a Chinese bank
thought to be China Construction Bank.
All declined to comment.
EFG, which had SFr83.4bn of assets
under management at the end of 2014,
is owned by EFG Group, a Luxembourg
holding company owned by the Latsis
family. One of Greece’s richest families,
the family’s interests span banking, oil,
property, retail and an airline.
BTG, which cut ties with Mr Esteves
before he was released last month, said
total assets were R$266.6bn (£46.5bn),
12 per cent off from the previous quar-
ter. It recently agreed to sell its insur-
ance unit to CNP Assurances of France.
Its cash and bank deposits fell 11 per
cent in the fourth quarter to R$20.5bn.
But it said that high-quality liquid assets
had risen 15 per cent since Mr Esteves’s
arrest on November 24, when many cli-
ents withdrew deposits, which fell 10
per cent to R$86bn in the quarter.
Additional reporting by Arash Massoudi
and Ralph Atkins
ecoms market after a hiatus of about a
decade. He lost the family’s telecoms
business to his younger brother, billion-
aire Anil Ambani, after a feud over con-
trol of the conglomerate they inherited
when their father died in 2002.
To meet some of costs of its new ven-
ture, Reliance Industries said in a stock
exchange filing this week that it would
issue 15bn shares at Rs10 each to exist-
ing shareholders. The issue is smaller
than a Rs167bn offering from State Bank
of India in 2008, the country’s largest.
Yesterday, Reliance also released
Mukesh Ambani (left) at Jio’s private
launch with actor Shah Rukh Khan
“make the road to personal transforma-
tion fun and social”.
In a separate tweet, he said he was
excited to be working with Index Ven-
tures, a VC firm with offices in San Fran-
cisco, London and Geneva, to invest in
entrepreneurs and help develop exist-
ing companies in its portfolio. Index has
invested in start-ups including storage
company Dropbox, music-sharing plat-
form Soundcloud and King, the now
public maker of Candy Crush.
Mr Costolo said he was pleased to be
working with Bryan Oki, a cross-fit
obsessive who founded a fitness con-
sulting firm, as a co-founder of the per-
sonal wellness start-up, and Danny
Rimer, a partner at Index Ventures, who
is on the board of Sky and was a director
at Skype. The former Twitter chief is
known for keeping fit, doing cross-fit
religiously and even inviting journalists
to join him at a SoulCycle class.
Mr Costolo left Twitter last year as
Wall Street lost faith in the messaging
platform’s ability to boost slowing user
★ FINANCIAL TIMES 21
COMPANIES
Media
Budweiser’s owner AB InBev was one of the groups involved in a study that predicted a rise in losses owing to an expected 15% increase in digital ad spending
Brands braced for $7.2bn hit from online ad fraud
SHANNON BOND — NEW YORK expected 15 per cent rise in digital ad campaigns in 2016, accounting for 49 advertisers, including McDonald’s,
spending this year. almost a third of total ad spending, AB InBev and Unilever, and tracked
The advertising industry’s rapid shift
The findings “underscore the need accordingtotheconsultancyeMarketer. nearly 10bn advertising impressions
to digital formats is providing a boon to
for the entire marketing ecosystem to Brands have been racing to follow over two months.
fraudsters, who will cost brands $7.2bn
manage their media investments with their customers from print, television Rates of bot viewing ranged from 3 to
this year, up from $6.3bn in 2015,
far greater discipline and control against and radio on to websites and social 37 per cent, compared with 2 to 22 per
according to new research.
a backdrop of increasingly sophisticated media platforms, but the booming dig- cent last year. The overall and average
Marketers are losing money to fraudu- fraudsters”, said Bob Liodice, ANA ital advertising marketplace is proving rates of online ads being viewed by bots
lent viewing by “bots”, or automated president. difficult for many to navigate and vul- were “basically unchanged” from a year
computer programs, that mimic human Fraud is just one of the concerns dog- nerable to exploitation from hackers ago, the report concluded, with about
behaviour. Advertisers pay for those ging the advertising industry, along with and even organised crime. one in 10 display ads being viewed by
views even though they are not seen by adblocking, transparency in media buy- Using malicious software, fraudsters bots and about a quarter of online video
the real people that campaigns are ing and viewability, or whether ads can take control of computers and sell bot- ad views similarly fraudulent.
intended to reach. actually be seen by website visitors. generated traffic to online publishers, Higher priced advertising units, such
The study by the US’s Association of “When you look at the entire technol- who charge brands to display ads to as videos and ads that target specific
National Advertisers, whose members ogy equation, you have a number of their visitors — human or computer. In demographics, are more vulnerable to
collectively spend more than $250bn a things going on that can be paralysing to other cases, digital ads are placed on bots than the average online ad, the
year on marketing, and White Ops, an a marketer,” Mr Liodice said. “Who do websites that are viewed almost entirely study found, because they “provide a
online ad fraud investigator, attributed we trust?” Globally, marketers are set to by bots rather than real people. stronger economic incentive for botnet
the rise in projected losses to an spend nearly $200bn on digital The ANA/White Ops survey involved operators to commit fraud”.
third-quarter results that exceeded ana-
lysts’ expectations, with net profits up
39 per cent year on year. The increase
was driven largely by an improvement
in margins at Reliance’s main oil refin-
ing division.
However, the company’s share issue
came amid a flurry of developments for
Jio, as Mr Ambani’s venture limbers up
for a launch that has been a major focus
for its founder and which is expected to
set off a new wave of competition in
India’s telecoms sector.
In late December, Reliance staged a
star-studded private launch for its new
network, attended by the likes of Bolly-
wood star Shah Rukh Khan.
Most industry analysts think Mr
Ambani’s launch will kick off a poten-
tially damaging telecoms price war in
India, hitting rivals such as India’s
Bharti Airtel and UK-based Vodafone,
the country’s two largest operators.
Jio’s development has also led to
something of a rapprochement between
Mr Ambani and his younger brother,
who runs Reliance Communications, a
Mumbai-listed telecoms business that
has struggled over recent years.
See Lex
growth. After five years as chief, includ-
ing taking the company public and
building a revenue model, he was
replaced by Jack Dorsey, Twitter’s co-
founder, at first temporarily and then
permanently in early October.
Known as the inventor of the tweet,
Mr Dorsey has promised dramatic
improvements to the product, including
launching a curated section to the app
called “Moments”, which abandons the
platform’s chronological timeline, and
considering allowing tweets longer than
140 characters. Mr Costolo’s announce-
ments were both longer than the normal
tweet limit, taking the form of screen-
shots sent from the notes page on his
smartphone.
But shares in Twitter were trading at
an all-time low at lunchtime in New
York, after last week’s heavy losses were
compounded by worries about the sta-
bility of the platform, which went down
for hours yesterday. The stock fell 3.2
per cent to $17.37, a third lower than its
initial public offering price in late 2013.
22
Investment in student digs highlights value of educational exports
It’s the little touches that give student
areas their distinctive charm.
Overflowing bins. Underwear dangling
from telephone wires. An intoxicated
first-year medic weaving down the
pavement. Yet much of this could be
swept away if investors such as
Goldman Sachs and Wellcome Trust
retain more students in purpose-built
halls of residence.
Vero Group, a joint venture backed
by the pair, is the latest evidence of the
institutionalisation of student digs.
Unite Group, the market leader,
reckons commercially-run halls of
residence worth £15bn have changed
hands over three years.
A consolidation is under way,
propelled partly by a hunger for yield.
But bulls see a secular as well as a
cyclical opportunity.
The government has abolished a cap
Unilever warns ‘volatility is here to stay’
Chief reveals rise in emerging
market sales but says trading
backdrop looks challenging
SCHEHERAZADE DANESHKHU
Unilever, the maker of Dove deodorant
and Hellmann’s dressings, said that it
was preparing for tough trading condi-
tions this year with tighter cost controls
and more new products.
Paul Polman, the consumer-goods
group’s chief executive, warned of “high
volatility in 2016”, citing wide-ranging
challenges including falling commodity
prices, Chinese stock market fluctua-
tions, Middle East political instability
and more hurricanes and flooding.
“This volatility is here to stay,” he said.
The caution came as the Anglo-Dutch
company yesterday reported slightly
better than expected full-year sales
growth and profitability, boosted in part
by favourable currency movements.
Higher price rises in Latin America
and a 7 per cent increase in ice cream
sales, which include the Magnum and
Ben & Jerry’s brands, also helped lift
group revenues by 10 per cent.
Weakening emerging markets, in
which Unilever makes 58 per cent of its
sales, had hit the company hard in 2014.
But sales in these regions recovered last
year, rising 7.1 per cent, up from 5.7 per
cent in 2014.
There was no growth in developed
regions, however. Mr Polman attributed
this in part to a polarisation of the mar-
ket and a squeezed middle class.
Citing an Oxfam report released on
Business Leaders
on numbers of UK and EU students,
which are expected to rise by 200,000
by 2020.
About 85 per cent of British second-
years move into houses rented from
small landlords. Property groups
believe more will stay in halls as tuition
costs rise. Purpose-built digs are more
conducive to study, apparently.
Foreign students have always
concurred. But their numbers are
stagnating at about 300,000, according
to Universities UK. The exclusivity of
attending a UK university has worn off
for the omnipresent Chinese. Indians,
irked by finicky border controls, favour
the US.
The government should do more to
encourage non-EU residents to study
here. Their uncapped fees contribute
healthily to the export earnings of UK
universities, estimated at over £10bn.
Their rents underpin ventures such as
Vero Group, guarding against upsets of
the kind suffered in care homes, an
earlier property consolidation play.
A pungent something will be lost,
however, if scruffy student digs
disappear entirely. A friend returning
home from lectures was routinely
Personal & household goods. Growth test
Monday showing that the richest 1 per
cent of people own as much wealth as
the other 99 per cent, he said: “This sad
statistic shows you the world is pulling
apart — there is a premium segment and
you have to be competitive on the mass
segment. If the billionaires are getting
more money but not the bottom, then
the middle of society is under pressure.”
Sales of spreads, including Flora,
which the group spun off last year as a
standalone unit, fell again, this time by 5
per cent.
This weighed on the food business,
where sales rose 1.5 per cent and operat-
ing profit margins fell.
Mr Polman confirmed that the senior
management at the spreads unit had
changed, adding that if sales did not
improve this year “we’ll have to think
about other things and we are obviously
looking at all options”.
He declined to say whether the group
Unilever performance
Revenue Pre-tax profits
(€bn) (€bn)
60 8.0
50 7.5
40
7.0
30
6.5
20
6.0
10
0 5.5
2011 12 13 14 15
Source: company
★ † FINANCIAL TIMES
UK COMPANIES
solicited by the local tart. Another was
tipped off to stay in doors on the night
of a riot. Call it an education in life.
Not nearly there yet
First came cruise control, writes Kate
Burgess. Then self-parking. Now
automatic steering and braking
systems. In a year or so autonomous
cars, designed by car manufacturers
and the likes of Google, will hit the
streets. Within two decades cars could
be entirely driverless, without pedals
or steering wheels.
This is revolution disguised as
evolution. Politicians are already
talking of the benefits to gearboxes,
emissions and crash statistics. British
insurers are looking at the
implications. Little Miss Lombard can’t
wait for stress-free car journeys
without parental outbursts of road
rage. Her parent hopes that motor
premiums will fall. S&P predicts lower
frequency and severity of claims will
drive down rates. But it will take a long
time for insurers to cut charges. First,
laws insisting human drivers keep their
had received offers for the business,
which analysts value at about €5.5bn
and which Unilever says is important
for its profitability and cash flow.
“I can get rid of this business tomor-
row by giving it away to someone, but
that’s criminal,” said Mr Polman. “From
the part of the Netherlands I come from,
we don’t do those things. We need to be
sure that we build shareholder value.”
Mr Polman also stressed the need for
cutbacks, having launched a €1bn cost-
cutting programme late last year.
It is adopting zero-based budgeting,
with managers justifying budgets from
scratch each year, which has been popu-
larised by 3G, the private equity group.
Mr Polman said that it would take two
years to roll out the new method of
budgeting across the group.
Unilever’s revenues were €53.3bn last
year, compared with €48.4bn the year
before. Pre-tax profits fell 6 per cent to
€7.2bn but this was distorted by the pre-
vious year’s exceptional gains on sales at
its food business.
The core operating profit margin rose
0.3 percentage points to 14.8 per cent.
Total sales rose 4.1 per cent on an under-
lying basis, above Unilever’s forecast
range of 2-4 per cent.
Mr Polman expected sales growth of
3-5 per cent in 2016. Underlying sales
growth of 4.9 per cent in the fourth
quarter was stronger than analysts’
expectations of 4 per cent.
Sales at the core personal-care divi-
sion rose 4.1 per cent in 2015. Mr Pol-
man said that acquisitions were behind
a rise in net debt, from €9.9bn in
December 2014 to €11.5bn.
See Lex and Lombard
hands on the wheel and their feet on
the pedals will have to change.
So, too, will rules on blame and
compensation. Today 90 per cent of
accidents each year are caused by
human error. It will be hard to blame
individuals for collisions if they are not
in the driver’s seat. Insurers will need
to know who — or what — was in
charge and when.
The Association of British Insurers is
right to huddle. But it can only do so
much when politicians, regulators,
carmakers and insurers globally have
to agree what the brave new world of
byways and highways should look like.
Action contraptions
DIY stores do not sell “innovation
funnels”, any more than they stock sky
hooks or babe magnets, or every chief
executive would have one. But Unilever
boss Paul Polman cites just such a
device as key to outperforming tough
markets in 2016. He is referring to the
group’s process for inventing products
such as pink and black variants of the
Magnum choc ice.
Hellmann’s owner Unilever saw no developed market growth last year — Alamy
That healthy part of company
culture helped Unilever lead the charge
into the full-year results season with
adjusted operating profits that met
forecasts at €7.9bn, a 12 per cent jump.
Finance director Graeme Pitkethly
has armed himself with something
rather more sinister than a funnel in a
simultaneous effort to raise operating
margins. Unilever has adopted “zero-
based budgeting”, which involves
justifying every expense anew in each
accounting period.
As Martin Deboo of Jefferies notes,
ZBB can inspire penal austerity that
damages the self-worth of staff. The
tactic was developed in private equity,
where pinchpennies may expect
workers to buy their own uniforms.
The trick for Mr Pitkethly will be to
develop a style of ZBB appropriate to
Unilever’s collegial culture. Otherwise,
smart employees may decline to stuff
Mr Polman’s funnel with innovations.
Margins might then rise even as sales
and profits stagnated. That would be a
Pyrrhic outcome.
jonathan.guthrie@ft.com
Motor insurance: kate.burgess@ft.com
Wednesday 20 January 2016
Briefs
IG Group
Expansion hits profits
IG Group, the UK-listed online
brokerage and trading platform, has
reported a drop in profits even as
revenues increased in its first set of
half-year results under chief
executive Peter Hetherington.
The company yesterday revealed
its pre-tax profits fell by 2.8 per
cent to £96.8m during the six
months to the end of November,
while trading revenues were up 8.8
per cent to £214.8m. Investments in
geographic expansion, IT
development and marketing and
advertising pushed administrative
expenses up 18.7 per cent.
In the UK, where IG has a market
share in retail leveraged products of
about 50 per cent, and Australia,
where its share is 40 per cent, the
group is focusing on moving into
exchange traded funds and
unleveraged trading to diversify the
range of products it offers.
New client numbers are up 35 per
cent from the previous year. IG
announced an interim dividend of
8.45p per share, in line with
dividend policy. Harriet Agnew
RBS
Agency lifts outlook
The outlook on Royal Bank of
Scotland’s credit rating has been
lifted by Standard & Poor’s in a shot
in the arm for the lossmaking
lender, still majority-owned by UK
taxpayers.
Progress in shrinking its risk-
weighted assets and strengthening
its capital position prompted the
agency to raise the outlook to
positive from stable yesterday.
Although S&P kept the bank’s
rating at BBB-/A-3, a brighter
outlook increases the chances of an
upgrade in the rating.
RBS, which took a £45bn bailout
at the height of the financial crisis,
raised billions of pounds last year
selling its stake in Citizens, a bank
based in the north-east US. FastFT
British Land
Buoyed by new leases
British Land, one of Europe’s largest
listed property companies, issued a
quarterly update ahead of
expectations after agreeing 312,000
square feet of new leases across its
retail and office portfolio during the
third quarter at rates 8.5 per cent
ahead of the September 2015
estimated rental value.
Most of this was in its retail
portfolio, where it said footfall was
up 2 per cent, with a 4 per cent rise
in its Meadowhall shopping centre
in Sheffield.
The update comes a day after
British Land won a long-running
battle with heritage campaigners
over the approval for its Norton
Folgate development in London.
Judith Evans
Wednesday 20 January 2016 ★ FINANCIAL TIMES 23

UK COMPANIES

Insurance Insurance

Prudential eyes
retreat from
annuity market
Deals with UK pension
schemes are losing allure
under Solvency II rules
OLIVER RALPH
INSURANCE CORRESPONDENT
Prudential has signalled a pull back
from the UK annuity market, saying
that the new Solvency II rules make it
tougher to generate a decent return
from the business.
The insurer has been a big operator
in bulk annuities, in which the custom-
ers are corporate pension schemes.
In 2014 the group wrote £1.7bn worth
of bulk annuities while in the first
cent of group profits in the first half of
2015.
Prudential also moved to fill the
vacancy at the top of the UK business.
John Foley, who has been interim UK
chief executive since Jackie Hunt left the
role in October, has now been handed
the job on a permanent basis. Mr Foley
has been with the insurer for 15 years,
holding a variety of positions.
“John has played a huge role in the Hands free: a Tesla Model S
group’s success in recent years,” said electric car equipped with
Mike Wells, Prudential chief execu- Autopilot hardware and
tive. “He helped to steer the group software being driven in
through the financial crisis as chief risk Amsterdam — Jasper Juinen/Bloomberg
officer and has gone on to strengthen
our investment oversight as group

The insurer’s solvency

capital ratio came in at
190% — at the top end of
analysts’ expectations
nine months of 2015 it wrote £1.5bn.
“I don’t see us sustaining those vol-
umes going forward,” said Nic
Nicandrou, chief financial officer, at an
investor day in London. “It is possible to
make it work, but a lot of financial engi-
neering is required.”
Capital requirements for annuities
under Solvency II are higher than they
were under the previous regime. For
example, according to Prudential, the
capital needed for an individual annuity
is 50 per cent higher now than it was.
In future, the focus of the UK business
will be expanding retail sales in the long-
term savings and retirement market,
and improving management of the back
book. The UK accounted for 19 per cent
of new life assurance sales and 23 per
investment director.”
Barrie Cornes, analyst at Panmure,
said that Mr Foley’s appointment was
“fine”. “He’s very much Mike Wells’s
man,” he added.
Prudential used its investor day to
announce its capital strength under the
new Solvency II rules, becoming the first
UK insurer to do so.
Its solvency capital ratio — a measure
of the amount of capital it has as a pro-
portion of the minimum required —
came in at 190 per cent. That was at the
top end of analysts’ expectations of 180-
190 per cent, although lower than the
218 per cent that the insurer reported
for 2014.
Among the main reasons for the drop,
according to analysts at Bernstein, are
stricter rules on longevity risk and
credit risk, and a tougher line on the
amount of capital from the Asian busi-
ness that can be recognised in the group
number.
Mr Wells stressed that he still sees
strong opportunities for the group in
Asia and the US, despite the economic
slowdown in the former and possible
regulatory changes in the latter.
S&P says driverless cars will dent insurers’ margins
OLIVER RALPH ance sector could shrink to less than 40 ate challenges for insurers. “We’ll need — needs to be available to all insurers,”
INSURANCE CORRESPONDENT
per cent of the current size. The arrival to know, at the time a car has a collision, says Mr Shaw. “Over the next 20 to 30
Standard & Poor’s has warned that the of completely driverless cars (without who is in charge. Was the vehicle self- years we will see a shift from personal
development of driverless and auto- steering wheels or pedals) on the roads driving, or was the owner driving? The liability to product liability but perhaps
mated cars could shrink the size of the is still some way off — 20 years, accord- vehicle status — who is doing the driving not a complete shift,” he adds.
UK motor insurance market and force ing to Thatcham, an automotive The insurance industry is preparing
insurers to diversify. research centre — but in the shorter itself for a response. The Association of
term, more basic levels of automation Motor insurance claims British Insurers, with Thatcham and 11
In a report on the impact of automation, are already having an impact. By category, 2014 (%) insurers including Admiral, Direct Line
the rating agency said the trend would “We are seeing some great benefits, and the Lloyds insurance market, has
reduce the frequency and severity of especially in autonomous emergency Other 2 created a group to work with the govern-
claims, and so push down premiums. braking, which leads to a reduction in Theft 3 ment on the future of automated vehicle
“It will be some time before these fea- accident frequency and a 40 per cent Replacement use. The issues it will consider include
Bodily
tures become common, but when they reduction in personal injury claims,” vehicle 4 injury liability after an accident, the use of data
do we expect a continuation in the trend said Peter Shaw, chief executive of That- and potential changes to traffic laws.
of falling accidents,” said Robert Green- cham. “We are calling for regulation of Property The group will be chaired by David
damage 20
sted, an analyst at S&P. The total autonomous breaking — we’d like to see 49 Williams, head of underwriting at Axa.
number of vehicle miles driven has it made a legal requirement.” S&P believes that, faced with the
remained static in the UK over the past Almost three-quarters of cars impact of automation, motor insurers
15 years, but the number of people launched last year had autonomous
22 will have to diversify into other busi-
killed or seriously injured has almost emergency braking as either standard Accidental nesses. This might mean other areas of
halved. or an optional extra. damage insurance, such as home, pet or gadget
According to KPMG estimates, by While these developments have insurance.
Source: ABI
2040 the personal automobile insur- undoubted benefits for safety, they cre- See Lombard

Mining

Rio Tinto raises iron ore production to record high despite tumbling prices
RENÉE SCHULTES — SYDNEY
Rio Tinto increased production of iron
ore 11 per cent last year to a new record
and is forecasting a further 6.8 per cent
rise to 350m tonnes in 2016, despite the
collapse in the price of the key steel
ingredient.
Sam Walsh, chief executive of the
Anglo-Australian miner, which last
week said it would freeze pay for all staff
this year, yesterday acknowledged the
challenging market.
He said the company would “continue
to focus on disciplined management of
costs and capital to maximise cash flow
generation throughout 2016”.
The world’s second-largest iron ore
producer shipped 336.6m tonnes of ore
last year after mining 327.6m tonnes
and selling 9m from stockpiles. It said
bulk inventories were now largely
exhausted. The miner’s actual share of
returns is about 80 per cent of total pro-
duction after accounting for joint ven-
ture partners at some mines.
Rio Tinto — in line with other major
iron ore miners — has continued to
ramp up production in spite of slumping
The company says it will
‘focus on disciplined
management of costs and
capital’ throughout 2016
prices. Iron ore, which accounts for the warned analysts, with the demand first time since 1991, shrinking 2.3 per with a stabilisation coming in 2017.
largest share of Rio’s profits, has fallen outlook for steel in China remaining cent. The figures came alongside a gross
more than two-thirds since early 2013 weak. Lyndon Fagan, an analyst at JPMor- domestic product report confirming
on growth in supply and lower demand. Government data yesterday showed gan, forecast a further 3 per cent decline that China’s economy grew at its slowest
Rio said it achieved average iron ore Chinese steel output fell in 2015 for the in mainland steel production this year pace since 1990 last year.
pricing of $48.40 per wet metric tonne Meanwhile, Rio Tinto is forecasting a
on a free-on-board basis in 2015 com- 14-24 per cent increase in copper pro-
pared with $84.30 a year earlier. duction to between 575,000 and
However, Rio’s forecast production 625,000 tonnes on higher production in
this year means it will climb at the slow- the US and from the joint venture it
est year-on-year pace since 2013 when shares with Freeport-McMoRan in
production rose 4.9 per cent. Indonesia. That would return Rio’s pro-
Analysts at Citigroup in Sydney said duction to roughly the level of 2014,
that production at Rio’s mines in the Pil- when it produced 603,000 tonnes.
bara region of Western Australia was Shares in Rio Tinto closed up 0.3 per
“still expected to be about 335m tonnes cent at A$38.82 yesterday in Sydney.
in 2016, up 8 per cent from 310m tonnes Additional reporting by Christian Shepherd
in 2015”. in Beijing
The rout in iron ore could deepen, Rio’s Pilbara iron ore operation is expected to lift output — Christian Sprogoe/AFP/Getty See Lex

Retail

Next calls shareholder meeting

after dividend accounting error
ALIYA RAM
Next’s shareholders have been called to
an extraordinary meeting next month
after the fashion retailer admitted to an
accounting error that infringed UK law
on dividend payments.
Next admitted to a “technical infringe-
ment” of the UK Companies Act after it
failed to file accounts ahead of payouts
in 2014 and 2015.
The failure to file accounts
for three special and one
ordinary dividend was due
to a ‘procedural oversight’
The act requires businesses to dem-
onstrate sufficient reserves for divi-
dends. They must file accounts outside
the yearly cycle if fresh reserves have
been built up that would cover special
dividend payments.
But Next said it failed to file accounts
for three special and one ordinary divi-
dend due to a “procedural oversight”.
It said that the company “always had
sufficient reserves to pay the relevant
distributions at the time that they were
made” but failed to file accounts in time
to prove it.
“The issue is of a historic nature and
there is no change to the financial out-
look of the company as a consequence of
this technical matter,” it said.
Tony Shiret, analyst at Haitong, said
the reporting rules were new turf for the
company.
“I would imagine it’s just gone
under the radar because they actually
didn’t start paying special dividends
until about a year or so back,” he said.
“It’s just a question of backfilling the
forms and only a minor embarrass-
ment.”
Next said the company’s financial
outlook would not change as a result.
“The steps being proposed are also in
line with those taken by other listed
companies that have encountered simi-
lar issues in the past,” it said.
Shareholders will meet on February
10 to vote on steps to rectify the issue.
Next said it did not expect the dividends
Businesses For Sale
to need repaying and that past accounts
would not need restating.
In the past Next has undergone capi-
tal reorganisations to return cash to
shareholders through buybacks or divi-
dends, but this was the first time its
accounts had not shown sufficient
reserves. It has not been fined or other-
Business for Sale, Business Opportunities, Business Services,
wise penalised, it said. Business Wanted, Franchises
This month Next posted worse than Runs Daily
expected revenue figures after warm .........................................................................................................................................................................................................................................................................
weather and stock shortages hit Christ- Classified Business Advertising
UK: +44 20 7873 4000 | Email: acs.emea@ft.com
mas sales.
24 FINANCIAL TIMES Wednesday 20 January 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 $

-0.911% -0.27%
0.57% 0.35% 0.64% 1.68% 1.37% 0.55% 2.07% 0.69% 0.184% 0.332% 1.181% 2.23%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Dec 20 - Jan 19 Index All World Dec 20 - Jan 19 Index All World Dec 20 - Jan 19 Index All World Dec 20 - Jan 19 Index All World Dec 20 - Jan 19 Index All World Dec 20 - Jan 19 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,073.07 13,166.08 10,450.38
6,017.79 18,565.90 1,981.19
5,779.92 1,889.64
1,890.96 12,057.37 9,664.21 17,048.37
Day 0.57% Month -5.64% Year -6.29% Day 0.96% Month -7.52% Year -15.84% Day 1.68% Month -2.99% Year -10.84% Day 1.50% Month -3.22% Year NaN% Day 0.55% Month -10.21% Year 1.09% Day 0.60% Month -4.34% Year 0.08%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,071.13 1,434.48 21,872.06 2,861.18
43,160.61 9,365.80
40,743.45 1,310.95 8,554.90 19,635.81 2,638.47
4,503.94
Day 0.35% Month -8.45% Year -2.74% Day 0.34% Month -5.16% Year -1.36% Day 1.37% Month -7.75% Year -7.13% Day 1.01% Month -11.96% Year -14.78% Day 2.07% Month -9.74% Year -18.54% Day 1.75% Month -7.51% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,749.09 43,469.52 4,565.17 21,272.68 3,578.96 25,519.22
24,479.84
16,090.53 38,204.23 4,272.26 3,007.74
18,880.52
Day 0.64% Month -5.99% Year -8.05% Day 0.70% Month -12.95% Year -19.96% Day 1.97% Month -7.63% Year -2.45% Day 1.04% Month -11.12% Year -3.08% Day 3.22% Month -15.96% Year -10.92% Day 1.21% Month -4.07% Year -12.95%

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 9880.01 9757.12 CyprusCSE M&P Gen 67.69 66.24 Italy FTSE Italia All-Share 20535.67 20330.00 Philippines Manila Comp 6357.05 6335.09 Taiwan Weighted Pr 7854.88 7811.18 Cross-Border DJ Global Titans ($) 216.85 215.20
Australia All Ordinaries 4955.10 4911.80 Czech Republic
PX 873.98 867.85 FTSE Italia Mid Cap 31246.25 30938.34 Poland Wig 42819.78 42464.60 Thailand Bangkok SET 1266.01 1245.05 Euro Stoxx 50 (Eur) 2978.81 2935.39
S&P/ASX 200 4903.10 4858.70 OMXC Copenahgen 20
Denmark 932.24 920.15 FTSE MIB 18880.52 18686.86 Portugal PSI 20 4679.01 4653.56 Turkey BIST 100 71039.68 71062.00 Euronext 100 ID 837.98 822.65
S&P/ASX 200 Res 2100.90 2089.80 Egypt EGX 30 5941.19 5760.19 Japan 2nd Section 4370.58 4370.07 PSI General 2261.65 2248.06 UAE Abu Dhabi General Index 3889.24 3794.98 FTSE 4Good Global ($) 4956.71 4915.83
Austria ATX 2114.48 2070.77 Estonia
OMX Tallinn 880.14 884.33 Nikkei 225 17048.37 16955.57 Romania BET Index 6185.35 6018.98 UK FT 30 2740.20 2697.20 FTSE All World 241.15 239.50
Belgium BEL 20 3382.48 3339.75 Finland
OMX Helsinki General 8089.59 7939.40 S&P Topix 150 1146.08 1143.23 Russia Micex Index 1645.56 1622.43 FTSE 100 5876.80 5779.92 FTSE E300 1310.95 1293.29
BEL Mid 5455.70 5358.73 FranceCAC 40 4272.26 4189.57 Topix 1390.41 1387.93 RTX 660.29 646.90 FTSE 4Good UK 5340.83 5251.10 FTSE Eurotop 100 2596.73 2563.53
Brazil Bovespa 38204.23 37937.27 SBF 120 3375.84 3310.41 Jordan Amman SE 2110.52 2101.77 Saudi-Arabia TADAWUL All Share Index 5746.40 5525.12 FTSE All Share 3231.53 3183.92 FTSE Global 100 ($) 1204.20 1196.94
Canada S&P/TSX 60 709.99 703.69 Germany M-DAX 19029.23 18662.69 Kenya NSE 20 3835.10 3824.60 Singapore FTSE Straits Times 2638.47 2593.00 FTSE techMARK 100 3752.82 3730.34 FTSE Gold Min ($) 866.98 864.40
S&P/TSX Comp 12057.37 11942.17 TecDAX 1647.56 1591.27 Kuwait KSX Market Index 508.42 505.46 Slovakia SAX 303.23 303.23 USA DJ Composite 5568.87 5529.86 FTSE Latibex Top (Eur) 1910.10 1913.30
S&P/TSX Met & Min 254.73 252.60 XETRA Dax 9664.21 9521.85 Latvia OMX Riga 598.46 592.35 Slovenia SBI TOP 666.25 670.11 DJ Industrial 16090.53 15988.08 FTSE Multinationals ($) 1351.37 1355.95
Chile IGPA Gen 17312.92 17245.45 Greece Athens Gen 558.25 543.13 Lithuania OMX Vilnius 485.13 483.82 South Africa FTSE/JSE All Share 47627.76 46876.62 DJ Transport 6724.33 6689.06 FTSE World ($) 428.12 425.45
China FTSE A200 8294.37 8062.81 FTSE/ASE 20 155.47 151.41 Luxembourg LuxX 1263.14 1242.64 FTSE/JSE Res 20 23327.11 22878.94 DJ Utilities 589.64 582.79 FTSEurofirst 100 (Eur) 3663.91 3621.20
FTSE B35 10399.65 10095.20 Hong Kong Hang Seng 19635.81 19237.45 Malaysia FTSE Bursa KLCI 1629.22 1622.64 FTSE/JSE Top 40 42872.39 42093.40 Nasdaq 100 4163.10 4141.08 FTSEurofirst 80 (Eur) 4021.91 3959.87
Shanghai A 3147.73 3049.49 HS China Enterprise 8377.80 8134.81 Mexico IPC 40743.45 40604.79 South Korea Kospi 1889.64 1878.45 Nasdaq Cmp 4503.94 4488.42 MSCI ACWI Fr ($) 362.68 364.47
Shanghai B 371.32 358.69 HSCC Red Chip 3518.39 3414.87 Morocco MASI 8868.67 8853.56 Kospi 200 230.08 228.59 NYSE Comp 9358.15 9299.62 MSCI All World ($) 1514.05 1521.00
Shanghai Comp 3007.74 2913.84 Hungary Bux 23214.77 23179.43 Netherlands AEX 407.68 401.99 Spain IBEX 35 8554.90 8469.30 S&P 500 1890.96 1880.33 MSCI Europe (Eur) 1285.15 1291.07
Shenzhen A 1982.36 1913.86 India BSE Sensex 24479.84 24188.37 AEX All Share 626.76 617.47 Sri Lanka CSE All Share 6283.24 6324.61 Wilshire 5000 19416.67 19335.23 MSCI Pacific ($) 2093.20 2121.33
Shenzhen B 1194.70 1165.70 S&P CNX 500 6225.20 6149.15 New Zealand NZX 50 6124.20 6101.44 Sweden OMX Stockholm 30 1332.99 1306.02 Venezuela IBC 13593.96 14496.76 S&P Euro (Eur) 1335.04 1314.62
Colombia COLCAP 1078.69 1103.26 Indonesia Jakarta Comp 4491.74 4481.28 Nigeria SE All Share 22550.83 23514.04 OMX Stockholm AS 461.22 452.65 Vietnam VNI 535.77 526.37 S&P Europe 350 (Eur) 1342.95 1325.00
Croatia CROBEX 1593.48 1576.47 Ireland ISEQ Overall 6366.33 6279.71 Norway Oslo All Share 579.44 563.22 Switzerland SMI Index 8223.76 8099.08 S&P Global 1200 ($) 1684.85 1670.71
Israel Tel Aviv 100 12.51 12.45 Pakistan KSE 100 31092.61 30628.40 Stoxx 50 (Eur) 2828.03 2796.46
(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 Jan 19 %Chg %Chg Jan 19 %Chg %Chg Jan 19 %Chg %Chg Jan 19 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 21.0 96.46 -0.67 Bp 173.4 342.45 5.80 Bbva 844.7 5.83 0.01 Softbank . 719.1 5046.00 -65.00 Glencore 78.98 14.0 -9.3 Jd Sports Fashion 1089.00 10.2 7.9 Xaar 481.50 6.4 14.3 Oil Equipment & Services 11940.24 6.5 -8.3
Facebook Class A 13.6 95.86 0.89 Royal Dutch Shell 149.2 1365.00 26.50 Unicredit 510.5 4.16 0.00 Toyota Motor 681.5 6804.00 62.00 Bp 342.45 7.2 -2.2 Wood (john) 589.50 8.7 -3.9 Hunting 255.50 6.1 -16.4 Personal Goods 25645.61 3.4 -0.9
Netflix 12.1 106.15 2.11 Royal Dutch Shell 133.2 1369.50 33.57 Santander 437.8 3.92 -0.03 Mitsubishi Ufj Fin,. 662.4 646.80 -12.60 Unilever 2934.00 3.8 0.3 B&m Eur Value Retail S.a. 273.40 6.9 -4.0 Communisis 40.25 5.2 -1.2 Oil & Gas Producers 5239.30 2.8 -7.6
Hospira 11.8 89.95 -0.01 Hsbc Holdings 125.7 488.65 8.95 Intesa Sanpaolo 404.1 2.66 0.00 Mizuho Fin,. 451.9 213.40 -3.40 Admiral 1695.00 3.7 2.2 Petrofac 712.00 6.5 -10.6 Menzies(john) 407.00 5.0 -1.9 Mining 6258.90 1.8 -14.9
Bank Of America 10.9 14.12 -0.34 Glaxosmithkline 118.5 1390.00 24.50 Nestle N 381.8 64.05 0.00 Sumitomo Mitsui Fin,. 386.6 4055.00 -50.00 Burberry 1139.00 3.3 -4.7 Home Retail 149.00 5.0 49.7 Mj Gleeson 590.00 4.1 9.4 Pharmaceuticals & Biotech. 12351.66 0.7 -4.3
Amazon.com 10.9 575.43 5.25 Lloyds Banking 116.4 65.78 1.82 Novartis N 351.6 73.51 0.00 Fuji Heavy Industries 281.4 4520.00 130.00 Anglo American 238.80 2.7 -20.3 Tullow Oil 128.00 4.0 -22.8 Premier Foods 38.50 4.1 -0.6 Industrial Metals 610.13 0.5 -15.2
Microsoft 8.4 50.87 -0.12 Vodafone 110.9 216.80 3.35 Unilever Dr 342.9 38.61 1.13 Fast Retailing Co., 275.4 37220.00 490.00 Shire 4223.00 2.6 -10.1 Amec Foster Wheeler 381.50 3.8 -11.1 Standard Life Investments Property ome Trust Ld 85.75 3.6 1.5 Beverages 15353.77 0.4 -0.4
Citigroup 7.4 42.46 -0.01 Prudential 100.4 1392.50 46.00 Sanofi 325.9 74.79 2.52 Fanuc 251.5 18650.00 340.00 Tesco 159.10 2.5 6.4 Talktalk Telecom 197.80 3.7 -9.6 Tribal 22.50 3.4 -6.3 Life Insurance 7147.49 0.0 -8.8
Exxon Mobil 6.4 77.65 0.07 Unilever 95.9 2934.00 91.00 Total 314.3 38.62 0.54 Sony 231.7 2666.50 44.00 Bg 939.90 2.0 -4.7 Clarkson 2180.00 3.4 -3.2 Mccoll's Retail 139.00 3.3 3.0 Gas Water & Multiutilities 5905.72 -0.3 -0.7
The Walt Disney 5.6 94.28 0.38 Rio Tinto 95.2 1657.00 24.50 Daimler Ag Na O.n. 304.4 64.92 0.00 Honda Motor Co., 205.6 3441.00 31.00 Sabmiller 4138.00 2.0 1.7 Pz Cussons 277.70 2.8 -2.7 Aquarius Platinum Ld 12.50 3.0 9.9 Automobiles & Parts 6703.23 -0.8 -7.2
Glaxosmithkline 1390.00 1.9 1.2 Al Noor Hospitals 1145.00 2.8 3.3 Devro 285.25 2.9 -1.6 Nonlife Insurance 2353.58 -1.0 -4.5
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Randgold Resources Ld 4268.00 1.9 3.0 Senior 212.00 2.4 -7.8 Fdm (holdings) 535.00 2.9 2.4 Food Producers 8196.24 -1.1 -7.5
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Consol Energy 5.39 0.40 8.02 Glencore 78.98 7.66 10.20 Arcelormittal 3.33 0.18 5.75 Kawasaki Kisen Kaisha, 223.00 10.00 4.69 Intercontinental Hotels 2274.00 -9.6 -14.4 Allied Minds 285.10 -20.5 -28.7 Premier Oil 19.00 -56.1 -60.8 General Financial 8353.88 -5.7 -11.7
Viacom Class B 42.41 2.56 6.42 Ocado 259.10 24.02 9.91 Kering 150.50 8.05 5.65 Sumitomo Osaka Cement Co., 481.00 21.00 4.57 Provident Fin 2932.00 -9.2 -12.9 Restaurant 505.00 -18.1 -23.9 Lonmin 39.25 -28.6 -53.0 Electronic & Electrical Equip. 3823.52 -5.6 -9.8
Delta Air Lines 46.36 1.86 4.18 Evraz 61.95 3.40 5.81 Natixis 4.16 0.15 3.63 Sumco 834.00 34.00 4.25 Hikma Pharmaceuticals 2006.00 -8.6 -13.0 Virgin Money Holdings (uk) 286.00 -16.0 -24.9 Ferrexpo 17.50 -20.5 -18.6 Real Estate & Investment Servic 2776.88 -5.5 -9.7
Wynn Resorts Ltd 60.50 2.13 3.65 Vedanta Resources 214.40 8.60 4.18 Schneider Electric 47.85 1.65 3.56 Tokyo Dome 603.00 24.00 4.15 Merlin Entertainments 410.00 -7.2 -10.0 Zoopla Property 200.20 -12.4 -16.4 Exillon Energy 82.00 -18.0 -23.4 Banks 3421.05 -4.5 -10.4
Eli Lilly & Co. 84.04 2.80 3.45 Berkeley Holdings (the) 3572.00 142.00 4.14 Sanofi 74.79 2.52 3.49 Advantest 978.00 33.00 3.49 Taylor Wimpey 184.80 -7.1 -9.0 Bba Aviation 157.80 -12.2 -15.4 Nanoco 42.00 -14.3 -27.0 Industrial Transportation 2437.05 -4.2 -6.3
Tui Ag 1236.00 -6.7 -2.2 Ashmore 201.50 -11.9 -21.4 Oxford Instruments 568.00 -13.9 -25.9 Health Care Equip.& Services 6724.60 -4.0 -7.2
Downs Downs Downs Downs
Royal Bank Of Scotland 264.60 -6.6 -12.4 Poundland 148.00 -11.7 -28.7 Petropavlovsk 5.23 -12.8 -19.8 Travel & Leisure 8494.07 -3.9 -6.3
Chesapeake Energy 3.28 -0.29 -8.01 Euromoney Institutional Investor 926.00 -60.50 -6.13 Grifols Sa 14.99 -14.40 -48.99 Meiji Holdings Co., 8960.00 -310.00 -3.34
Aberdeen Asset Management 228.30 -6.5 -21.1 Moneysupermarket.com 330.00 -11.4 -10.1 Foxtons 172.25 -12.3 -8.4 Real Estate Investment Trusts 3015.32 -3.8 -7.5
Newmont Mining 16.29 -1.41 -7.97 Telecom Plus 874.00 -34.00 -3.74 B.popular 2.31 -0.15 -6.22 Nisshin Seifun . 1779.00 -60.00 -3.26
Hargreaves Lansdown 1265.00 -6.5 -16.0 Tullett Prebon 316.10 -11.2 -15.0 Arrow Global 216.50 -11.5 -16.6 Forestry & Paper 13065.66 -3.7 -9.3
Ensco 9.66 -0.65 -6.26 Cls Holdings 1616.00 -62.00 -3.69 B. Sabadell 1.45 -0.05 -3.47 Shin-etsu Chemical Co., 5984.00 -142.00 -2.32
Int Consolidated Airlines S.a. 561.50 -6.2 -8.0 Aldermore 190.00 -11.1 -17.9 Brammer 146.00 -11.3 -20.4 Electricity 8168.26 -3.3 -7.4
Freeport-mcmoran 4.11 -0.24 -5.47 Allied Minds 285.10 -9.90 -3.36 Caixabank 2.81 -0.05 -1.72 Daiwa House Industry Co., 3070.00 -71.00 -2.26
Barclays 189.90 -6.2 -13.2 Thomas Cook 108.50 -10.8 -10.4 Wanton 168.00 -10.6 -14.0 Software & Computer Services 1554.59 -3.3 -6.1
Tiffany & Co. 64.34 -3.31 -4.89 Poundland 148.00 -4.30 -2.82 Solvay 77.80 -1.26 -1.59 Japan Tobacco . 4049.00 -92.00 -2.22
Whitbread 3952.00 -5.9 -10.2 Jupiter Fund Management 391.30 -10.7 -13.4 Topps Tiles 136.50 -10.5 -13.6 Construction & Materials 4767.66 -3.2 -7.9
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
Jan 19 Currency Mid Change Mid Change Mid Change Jan 19 Currency Mid Change Mid Change Mid Change Jan 19 Currency Mid Change Mid Change Mid Change Jan 19 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 13.4350 0.0130 14.6421 0.0450 19.0026 -0.1553 Indonesia Indonesian Rupiah 13880.0000 -52.5000 15127.0826 -25.1901 19631.9789 -254.5486 Poland Polish Zloty 4.0788 -0.0222 4.4452 -0.0148 5.7690 -0.0845 ..Three Month 0.7070 0.0064 0.7704 0.0086 - -
Australia Australian Dollar 1.4453 -0.0090 1.5752 -0.0065 2.0442 -0.0316 Israel Israeli Shekel 3.9723 0.0193 4.3291 0.0301 5.6184 -0.0239 Romania Romanian Leu 4.1598 -0.0101 4.5335 -0.0015 5.8836 -0.0683 ..One Year 0.7073 0.0064 0.7697 0.0086 - -
Bahrain Bahrainin Dinar 0.3771 -0.0001 0.4109 0.0008 0.5333 -0.0050 Japan Japanese Yen 117.7850 0.3900 128.3676 0.6950 166.5959 -0.9676 Russia Russian Ruble 78.5407 -0.5856 85.5973 -0.4563 111.0885 -1.8522 United States United States Dollar - - 1.0898 0.0023 1.4144 -0.0129
Bolivia Bolivian Boliviano 6.9100 - 7.5308 0.0159 9.7736 -0.0894 ..One Month 117.7849 0.3899 128.3677 0.6950 166.5959 -0.9677 Saudi Arabia Saudi Riyal 3.7503 0.0001 4.0872 0.0087 5.3044 -0.0485 ..One Month - - 1.0898 -0.3375 1.4144 -0.0129
Brazil Brazilian Real 4.0474 0.0159 4.4110 0.0266 5.7247 -0.0297 ..Three Month 117.7847 0.3895 128.3677 0.6951 166.5956 -0.9682 Singapore Singapore Dollar 1.4364 -0.0029 1.5654 0.0001 2.0316 -0.0227 ..Three Month - - 1.0896 -0.3375 1.4144 -0.0129
Canada Canadian Dollar 1.4521 0.0004 1.5826 0.0038 2.0539 -0.0182 ..One Year 117.7836 0.3872 128.3677 0.6951 166.5959 -0.9693 South Africa South African Rand 16.7313 -0.0233 18.2345 0.0132 23.6648 -0.2497 ..One Year - - 1.0884 -0.3375 1.4147 -0.0129
Chile Chilean Peso 725.4600 -4.7700 790.6404 -3.5195 1026.0959 -16.1965 Kenya Kenyan Shilling 102.4000 -0.0500 111.6003 0.1811 144.8353 -1.3965 South Korea South Korean Won 1205.9000 -5.0500 1314.2466 -2.7193 1705.6339 -22.8133 Venezuela Venezuelan Bolivar Fuerte 6.3050 0.0195 6.8715 0.0357 8.9178 -0.0538
China Chinese Yuan 6.5782 -0.0011 7.1692 0.0139 9.3043 -0.0867 Kuwait Kuwaiti Dinar 0.3052 0.0009 0.3326 0.0017 0.4316 -0.0027 Sweden Swedish Krona 8.5450 -0.0435 9.3128 -0.0277 12.0862 -0.1727 Vietnam Vietnamese Dong 22420.0000 20.0000 24434.4046 73.3346 31711.0992 -261.5833
Colombia Colombian Peso 3305.9750 4.8450 3603.0076 12.8706 4675.9956 -35.8669 Malaysia Malaysian Ringgit 4.3650 -0.0315 4.7572 -0.0242 6.1739 -0.1014 Switzerland Swiss Franc 1.0036 -0.0031 1.0937 -0.0010 1.4194 -0.0173 European Union Euro 0.9176 -0.0019 - - 1.2978 -0.0146
Costa Rica Costa Rican Colon 533.8000 0.0600 581.7603 1.2927 755.0106 -6.8222 Mexico Mexican Peson 18.1828 -0.0627 19.8164 -0.0264 25.7178 -0.3249 Taiwan New Taiwan Dollar 33.6495 0.0340 36.6728 0.1144 47.5941 -0.3869 ..One Month 0.9175 -0.0019 - - 1.2977 -0.0146
Czech Republic Czech Koruna 24.8007 -0.0566 27.0289 -0.0045 35.0782 -0.4017 New Zealand New Zealand Dollar 1.5427 -0.0089 1.6813 -0.0061 2.1820 -0.0326 Thailand Thai Baht 36.2805 -0.0350 39.5402 0.0454 51.3154 -0.5195 ..Three Month 0.9173 -0.0019 - - 1.2976 -0.0146
Denmark Danish Krone 6.8479 -0.0143 7.4632 0.0002 9.6858 -0.1090 Nigeria Nigerian Naira 199.2500 - 217.1520 0.4582 281.8206 -2.5785 Tunisia Tunisian Dinar 2.0396 -0.0032 2.2229 0.0013 2.8848 -0.0309 ..One Year 0.9161 -0.0020 - - 1.2970 -0.0147
Egypt Egyptian Pound 7.8320 0.0233 8.5356 0.0433 11.0776 -0.0682 Norway Norwegian Krone 8.8201 -0.0774 9.6125 -0.0639 12.4751 -0.2247 Turkey Turkish Lira 3.0388 0.0072 3.3118 0.0148 4.2981 -0.0290
Hong Kong Hong Kong Dollar 7.8192 0.0192 8.5217 0.0389 11.0595 -0.0737 Pakistan Pakistani Rupee 104.9250 0.0100 114.3522 0.2521 148.4067 -1.3435 United Arab Emirates UAE Dirham 3.6727 0.0005 4.0027 0.0090 5.1948 -0.0468
Hungary Hungarian Forint 288.8150 -1.2360 314.7642 -0.6802 408.5020 -5.5018 Peru Peruvian Nuevo Sol 3.4315 0.0025 3.7398 0.0106 4.8535 -0.0408 United Kingdom Pound Sterling 0.7070 0.0064 0.7705 0.0086 - -
India Indian Rupee 67.6400 -0.0450 73.7173 0.1066 95.6705 -0.9395 Philippines Philippine Peso 47.6450 -0.0100 51.9258 0.0987 67.3894 -0.6308 ..One Month 0.7070 0.0064 0.7705 0.0086 - -
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 Jan 19 Jan 18 Jan 15 Jan 14 Jan 13 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2740.20 2697.20 2715.80 2758.00 2785.40 0.00 2875.90 2691.80 Food & Drug Retailer 1.64 FTSE SmallCap Index -5.87 Electronic & Elec Eq -8.12 FTSE 100 Price Change FTSE 100 Price Change
Jan 19 chge% Index Jan 18 Jan 15 ago yield% Cover ratio adj Return FT 30 Div Yield 1.82 1.85 1.84 1.82 1.80 0.00 3.93 2.74 Leisure Goods -0.38 Health Care -5.88 Chemicals -8.18 3I Group PLC 431.40 5.30 Kingfisher PLC 333.60 6.10
FTSE 100 (100) 5876.80 1.68 5950.94 5779.92 5804.10 6620.10 4.23 1.47 16.13 0.97 4605.32 P/E Ratio net 24.52 24.11 24.21 24.50 24.84 0.00 19.44 14.26 Gas Water & Multi -1.71 Media -5.98 Construct & Material -8.35 Aberdeen Asset Management PLC 228.30 4.70 Land Securities Group PLC 1081 13.00
FTSE 250 (250) 16114.56 0.98 16317.86 15958.81 16160.60 16126.56 2.80 1.93 18.50 8.09 11221.07 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Aerospace & Defense -1.96 NON FINANCIALS Index -6.06 Technology -8.38 Admiral Group PLC 1695 54.00 Legal & General Group PLC 244.50 5.50
FTSE 250 ex Inv Co (209) 17469.48 0.96 17689.87 17303.10 17538.51 17398.87 2.84 2.02 17.42 7.65 12403.26 FT 30 hourly changes Beverages -2.03 Equity Invest Instr -6.11 Oil & Gas Producers -8.51 Anglo American PLC 238.80 6.15 Lloyds Banking Group PLC 65.78 1.82
FTSE 350 (350) 3279.37 1.55 3320.75 3229.22 3247.53 3621.61 3.98 1.52 16.50 0.74 5180.06 8 9 10 11 12 13 14 15 16 High Low Fixed Line Telecomms -2.63 Industrial Transport -6.30 Oil & Gas -8.56 Antofagasta PLC 355.50 5.50 London Stock Exchange Group PLC 2473 37.00
FTSE 350 ex Investment Trusts (309) 3256.05 1.56 3297.13 3205.88 3224.00 3601.13 4.01 1.53 16.32 0.68 2648.17 2697.2 2738.4 2736.9 2743.1 2749.3 2750.9 2748.9 2737.3 2737 2754.4 2697.2 Telecommunications -2.68 Industrials -6.34 Automobiles & Parts -8.66 Arm Holdings PLC 964.00 15.00 Marks And Spencer Group PLC 421.70 4.50
FTSE 350 Higher Yield (108) 2976.18 1.54 3013.72 2931.10 2944.32 3540.70 5.85 1.28 13.31 0.85 4821.90 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Mobile Telecomms -2.71 Software & Comp Serv -6.73 Industrial Eng -8.89 Ashtead Group PLC 968.00 18.00 Merlin Entertainments PLC 410.00 5.70
FTSE 350 Lower Yield (242) 3273.77 1.57 3315.07 3223.21 3245.27 3348.70 2.08 2.20 21.80 0.54 3465.65 Utilities -2.85 Food Producers -6.92 Financials -9.68 Associated British Foods PLC 3010 8.00 Mondi PLC 1213 16.00
FTSE SmallCap (289) 4322.33 -0.06 4376.86 4324.81 4362.79 4398.34 3.03 1.35 24.39 4.72 5931.85 Tobacco -3.79 Real Est Invest & Tr -6.94 Tech Hardware & Eq -9.95
FTSE SmallCap ex Inv Co (154) 3907.10 -0.58 3956.39 3929.96 3967.44 3825.09 2.99 1.78 18.74 4.34 5630.78 FX: EFFECTIVE INDICES Consumer Goods -4.05 FTSE 100 Index -7.02 Oil Equipment & Serv -10.14
Astrazeneca PLC 4312.5 102.00 National Grid PLC 944.90 18.90
Aviva PLC 474.80 11.70 Next PLC 6685 40.00
FTSE All-Share (639) 3231.53 1.50 3272.30 3183.92 3202.33 3558.63 3.94 1.52 16.69 0.83 5163.84
Jan 18 Jan 15 Mnth Ago Jan 19 Jan 18 Mnth Ago Personal Goods -4.81 FTSE All{HY-}Share Index -7.02 Banks -10.76 Babcock International Group PLC 949.50 17.00 Old Mutual PLC 157.60 5.80
FTSE All-Share ex Inv Co (463) 3194.62 1.52 3234.92 3146.73 3164.76 3524.96 3.99 1.53 16.36 0.72 2641.27 Nonlife Insurance -5.23 Electricity -7.21 Forestry & Paper -11.09 Bae Systems PLC 506.00 -3.00 Pearson PLC 684.50 -7.50
FTSE All-Share ex Multinationals (574) 1111.68 1.29 933.00 1097.47 1109.55 1145.54 3.02 1.56 21.24 0.37 1895.66 Australia 87.26 87.05 90.82 Sweden 79.21 78.90 79.29 Household Goods & Ho -5.42 Support Services -7.26 Life Insurance -11.30 Barclays PLC 189.90 2.25 Persimmon PLC 1957 73.00
FTSE Fledgling (100) 7431.42 0.66 7525.17 7382.97 7444.14 7035.94 2.59 1.18 32.60 7.84 13405.34 Canada 81.05 81.15 84.52 Switzerland 157.96 158.29 159.89 Pharmace & Biotech -5.72 FTSE 250 Index -7.28 Financial Services -12.35 Barratt Developments PLC 579.00 12.50 Provident Financial PLC 2932 29.00
FTSE Fledgling ex Inv Co (50) 10387.33 1.22 10518.37 10261.67 10370.55 8915.79 2.72 1.44 25.52 0.00 18209.35 Denmark 106.39 106.56 105.78 UK 87.99 87.83 91.39 General Retailers -5.77 Health Care Eq & Srv -7.50 Basic Materials -14.69 Berkeley Group Holdings (The) PLC 3572 142.00 Prudential PLC 1392.5 46.00
FTSE All-Small (389) 3001.21 -0.02 3039.08 3001.85 3028.13 3043.50 3.01 1.35 24.71 3.27 5288.47 Japan 132.17 132.39 125.97 USA 106.98 106.51 106.97 Consumer Services -5.86 Travel & Leisure -7.72 Mining -16.24 Bg Group PLC 939.90 11.30 Randgold Resources LD 4268 -104.00
FTSE All-Small ex Inv Co Index (204) 2921.38 -0.51 2958.24 2936.35 2964.47 2843.51 2.98 1.77 18.95 3.12 5334.22 New Zealand 110.35 109.93 114.95 Euro 87.09 87.43 85.97 Real Est Invest & Se -7.96 Industrial Metals & -16.89 Bhp Billiton PLC 627.10 18.30 Reckitt Benckiser Group PLC 6099 94.00
FTSE AIM All-Share Index (852) 693.03 0.71 701.77 688.12 698.29 698.65 1.60 0.64 97.93 0.32 746.21 Norway 83.06 83.46 84.26
BP PLC 342.45 1.95 RELX PLC 1165 21.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3647 35.00 Rio Tinto PLC 1657 24.50
Oil & Gas (18) 5532.70 1.39 5602.50 5456.96 5476.63 7405.93 6.81 0.20 73.58 0.00 4633.99 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 715.00 3.00 Rolls-Royce Holdings PLC 550.00 11.50
Oil & Gas Producers (11) 5263.89 1.42 5330.30 5190.29 5210.41 7060.97 6.83 0.16 90.47 0.00 4558.81 Bt Group PLC 467.75 8.35 Royal Bank Of Scotland Group PLC 264.60 4.40
Oil Equipment Services & Distribution (7)12380.45 0.53 12536.64 12315.03 12264.16 15526.38 6.15 1.41 11.53 0.00 9105.31 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1772 12.00 Royal Dutch Shell PLC 1369.5 32.00
Basic Materials (28) 2373.68 1.91 2403.63 2329.28 2339.24 4576.86 8.63 1.88 6.16 1.30 2328.64 Burberry Group PLC 1139 18.00 Royal Dutch Shell PLC 1365 26.50
Chemicals (7) 10615.12 1.15 10749.04 10494.39 10572.68 12543.46 2.70 2.27 16.32 35.08 9154.75 Jan 19 No of US $ Day Mth YTD Total
YTD Gr Div Jan 19 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1159 23.00 Royal Mail PLC 436.60 7.10
Forestry & Paper (1) 14257.03 1.34 14436.90 14068.98 13939.69 12787.84 2.53 3.37 11.72 0.00 14809.82 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3733 77.00 Rsa Insurance Group PLC 407.80 8.80
Industrial Metals & Mining (2) 616.81 4.61 624.59 589.63 607.99 1555.30 1.87 -18.64 -2.87 0.00 538.28 FTSE Global All Cap 7742 408.91 -0.5 -7.8 -9.3 559.77
-9.3 2.7 Oil & Gas 164 272.13 -0.6 -0.6 -10.8 415.94 -10.8 4.7 Centrica PLC 209.40 4.20 Sabmiller PLC 4138 15.00
Mining (18) 6000.42 2.10 6076.12 5877.17 5903.79 13063.62 10.40 1.85 5.19 0.00 3080.72 FTSE Global All Cap 7105 421.11 -0.4 -7.6 -9.2 566.38
-9.2 2.7 Oil & Gas Producers 116 256.25 -0.7 -0.7 -10.2 398.61 -10.2 4.7 Coca-Cola Hbc AG 1390 19.00 Sage Group PLC 567.00 12.00
FTSE Global Large Cap 1416 362.56 -0.5 -7.6 -9.1 507.72
-9.0 2.9 Oil Equipment & Services 39 241.02 -0.4 -0.4 -13.2 336.04 -13.2 5.4 Compass Group PLC 1164 21.00 Sainsbury (J) PLC 239.00 -0.50
Industrials (119) 4083.06 1.28 4134.57 4031.59 4088.67 4351.13 2.69 1.19 31.12 0.99 4058.22
Construction & Materials (14) 4946.84 2.46 5009.25 4828.09 4925.33 4348.43 2.37 -0.81 -52.11 0.00 5054.92 FTSE Global Mid Cap 1637 542.95 -0.7 -8.1 -9.8 709.38
-9.8 2.3 Basic Materials 261 308.45 -0.9 -0.9 -12.2 452.22 -12.2 3.8 Crh PLC 1823 70.00 Schroders PLC 2590 67.00
Aerospace & Defense (9) 4192.65 0.44 4245.55 4174.16 4223.80 5041.93 2.73 0.96 38.25 1.32 4335.67 FTSE Global Small Cap 4689 561.76 -0.6 -8.9 -10.4 712.85
-10.4 2.2 Chemicals 122 526.53 -0.9 -0.9 -11.0 774.20 -11.0 2.9 Dcc PLC 5060 55.00 Severn Trent PLC 2117 46.00
General Industrials (6) 3432.30 1.01 3475.60 3397.87 3425.56 3140.38 3.33 1.67 18.05 0.00 3736.65 FTSE All-World 3053 239.50 -0.5 -7.6 -9.2 345.90
-9.1 2.8 Forestry & Paper 16 176.79 0.0 0.0 -9.8 283.96 -9.8 3.8 Diageo PLC 1828 48.50 Shire PLC 4223 -27.00
Electronic & Electrical Equipment (10) 4906.98 1.10 4968.88 4853.38 4938.07 5124.17 2.51 1.97 20.23 0.00 4345.66 FTSE World 2538 425.45 -0.5 -7.5 -9.0 825.05
-9.0 2.8 Industrial Metals & Mining 67 216.69 -0.8 -0.8 -15.8 319.10 -15.8 3.8 Direct Line Insurance Group PLC 371.60 2.50 Sky PLC 1049 17.00
Industrial Engineering (14) 6930.57 0.81 7018.00 6875.13 6965.80 9141.95 3.54 1.57 17.97 0.00 8115.08 FTSE Global All Cap ex UNITED KINGDOM In 7418 420.71 -0.5 -7.7 -9.2 567.95
-9.2 2.6 Mining 56 275.36 -1.0 -1.0 -14.9 403.52 -14.9 7.7 Dixons Carphone PLC 449.50 7.40 Smith & Nephew PLC 1107 4.00
Industrial Transportation (8) 3689.14 0.97 3735.68 3653.56 3688.05 4106.14 4.11 0.94 25.91 0.00 3103.56 FTSE Global All Cap ex USA 5738 374.36 -1.1 -9.0 -10.3 543.45
-10.2 3.3 Industrials 534 271.06 -0.5 -0.5 -9.4 376.81 -9.4 2.5 Easyjet PLC 1632 31.00 Smiths Group PLC 889.50 7.50
Support Services (58) 6185.10 1.47 6263.13 6095.71 6185.96 6430.46 2.46 1.51 26.90 2.30 6209.01 FTSE Global All Cap ex JAPAN 6480 415.68 -0.4 -7.9 -9.4 574.07
-9.4 2.8 Construction & Materials 109 377.75 -0.6 -0.6 -9.9 549.71 -9.8 2.4 Experian PLC 1152 30.00 Sports Direct International PLC 394.80 4.80
FTSE Developed 2102 388.54 -0.5 -7.3 -8.9 535.88
-8.9 2.7 Aerospace & Defense 28 468.81 -0.3 -0.3 -7.5 646.17 -7.4 2.3 Fresnillo PLC 664.50 -10.00 Sse PLC 1423 10.00
Consumer Goods (40) 17852.59 1.47 18077.81 17594.41 17559.94 16421.27 3.08 1.75 18.52 0.46 12594.22
FTSE Developed All Cap 5736 406.55 -0.5 -7.5 -9.1 554.67
-9.1 2.7 General Industrials 56 198.18 -0.3 -0.3 -8.7 295.83 -8.6 2.8 Gkn PLC 286.70 5.20 St. James's Place PLC 925.00 25.50
Automobiles & Parts (1) 6737.58 1.85 6822.58 6615.38 6620.08 8636.42 2.96 1.53 22.03 0.00 6196.15
FTSE Developed Large Cap 916 360.17 -0.4 -7.2 -8.8 503.53
-8.7 2.9 Electronic & Electrical Equipment 69 280.00 -0.7 -0.7 -11.5 358.93 -11.5 2.2 Glaxosmithkline PLC 1390 24.50 Standard Chartered PLC 491.00 1.90
Beverages (6) 15365.38 1.59 15559.22 15125.07 15114.79 14309.53 2.49 1.65 24.41 0.00 10465.72
FTSE Developed Europe Large Cap 219 297.53 -0.9 -8.5 -9.8 468.90
-9.8 3.9 Industrial Engineering 104 478.85 -0.7 -0.7 -10.6 655.36 -10.6 3.0 Glencore PLC 78.98 3.83 Standard Life PLC 364.60 4.90
Food Producers (10) 8288.55 0.13 8393.12 8278.16 8300.55 8122.96 1.98 1.39 36.28 3.94 6939.43
FTSE Developed Europe Mid Cap 302 457.00 -1.5 -9.4 -10.9 654.76
-10.8 2.8 Industrial Transportation 96 445.78 -0.4 -0.4 -10.0 618.09 -10.0 2.7 Hammerson PLC 569.50 1.00 Taylor Wimpey PLC 184.80 5.00
Household Goods & Home Construction (13)13168.21 2.08 13334.34 12899.34 13036.47 10506.02 2.21 2.54 17.82 0.00 8957.96
FTSE Dev Europe Small Cap 720 645.74 -1.9 -10.3 -11.7 901.12
-11.7 2.5 Support Services 72 252.07 -0.6 -0.6 -8.6 336.85 -8.6 2.1 Hargreaves Lansdown PLC 1265 26.00 Tesco PLC 159.10 -2.45
Leisure Goods (2) 5321.67 -0.13 5388.80 5328.48 5457.33 4974.82 4.49 1.32 16.81 0.00 4507.12
FTSE North America Large Cap 318 400.96 0.0 -6.5 -8.1 528.35
-8.1 2.5 Consumer Goods 422 383.51 -0.3 -0.3 -7.9 545.60 -7.9 2.6 Hikma Pharmaceuticals PLC 2006 15.00 Travis Perkins PLC 1820 16.00
Personal Goods (6) 22328.51 2.96 22610.20 21686.25 21409.71 22184.14 2.92 3.22 10.61 0.00 14405.60
FTSE North America Mid Cap 394 578.30 -0.1 -7.8 -9.7 714.20
-9.7 2.0 Automobiles & Parts 103 334.18 -0.7 -0.7 -12.4 456.55 -12.4 2.9 HSBC Holdings PLC 488.65 8.95 Tui AG 1236 65.00
Tobacco (2) 44911.09 0.56 45477.68 44660.57 44295.07 42029.24 4.44 1.18 19.14 0.00 27369.84
FTSE North America Small Cap 1521 573.70 -0.2 -9.1 -10.6 689.51
-10.5 2.0 Beverages 48 540.66 -0.2 -0.2 -5.5 780.06 -5.5 2.6 Imperial Tobacco Group PLC 3559.5 -8.50 Unilever PLC 2934 91.00
Health Care (19) 9059.36 1.43 9173.65 8931.83 8931.41 9656.70 3.86 3.53 7.34 0.18 6605.68
FTSE North America 712 266.96 0.0 -6.7 -8.4 360.48
-8.3 2.4 Food Producers 106 518.07 -0.6 -0.6 -7.3 758.79 -7.2 2.4 Inmarsat PLC 1054 14.00 United Utilities Group PLC 920.50 15.00
Health Care Equipment & Services (7) 6823.85 0.40 6909.94 6796.88 6822.14 6770.73 1.66 2.16 27.78 1.60 5787.01
FTSE Developed ex North America 1390 204.58 -1.1 -8.2 -9.8 318.58
-9.7 3.3 Household Goods & Home Construction 47 368.64 -0.6 -0.6 -8.2 521.22 -8.2 2.5 Intercontinental Hotels Group PLC 2274 28.00 Vodafone Group PLC 216.80 3.35
Pharmaceuticals & Biotechnology (12)12258.62 1.52 12413.27 12074.86 12070.15 13160.79 4.06 3.58 6.88 0.00 7939.57
FTSE Japan Large Cap 177 299.73 -1.4 -7.1 -8.5 374.92
-8.5 2.2 Leisure Goods 28 118.73 -0.3 -0.3 -10.0 152.84 -10.0 1.5 International Consolidated Airlines Group S.A. 561.50 16.00 Whitbread PLC 3952 52.00
Consumer Services (97) 4642.77 1.29 4701.34 4583.45 4626.16 4699.85 2.44 1.60 25.61 1.00 4191.58 FTSE Japan Mid Cap 303 456.43 -1.6 -5.5 -7.1 551.48
-7.1 1.7 Personal Goods 79 555.58 0.0 0.0 -7.0 753.02 -7.0 2.1
Food & Drug Retailers (7) 2590.41 -0.38 2623.09 2600.37 2652.11 3298.88 2.06 -1.50 -32.22 0.00 2962.15 Intertek Group PLC 2725 70.00 Wolseley PLC 3367 72.00
FTSE Global wi JAPAN Small Cap 782 485.98 -1.6 -5.9 -7.7 606.05
-7.7 2.0 Tobacco 11 1177.54 0.3 0.3 -3.2 2301.14 -3.2 4.1 Intu Properties PLC 290.20 2.20 Worldpay Group PLC 302.20 0.30
General Retailers (32) 2757.39 1.00 2792.18 2730.10 2771.48 2874.14 2.63 2.24 16.97 1.98 3024.57
FTSE Japan 480 125.09 -1.5 -6.8 -8.3 175.81
-8.3 2.1 Health Care 173 423.14 -0.2 -0.2 -7.7 589.67 -7.6 2.0 Itv PLC 262.80 5.30 Wpp PLC 1447 27.00
Media (22) 7088.16 1.48 7177.58 6984.88 7064.08 6849.13 2.89 1.62 21.41 1.47 4185.61
FTSE Asia Pacific Large Cap ex Japan 530 480.36 -0.8 -9.5 -11.2 718.59
-11.2 3.6 Health Care Equipment & Services 61 606.54 -0.2 -0.2 -6.6 695.70 -6.6 1.1 Johnson Matthey PLC 2445 51.00
Travel & Leisure (36) 8297.81 1.77 8402.49 8153.63 8165.19 7991.10 2.07 1.94 24.80 0.00 7562.22
FTSE Asia Pacific Mid Cap ex Japan 430 666.57 -0.7 -8.2 -10.8 961.76
-10.7 3.2 Pharmaceuticals & Biotechnology 112 320.05 -0.2 -0.2 -8.0 463.44 -8.0 2.3
Telecommunications (7) 3913.13 1.61 3962.50 3850.97 3891.15 3848.24 4.18 0.18 130.59 0.00 4100.39 FTSE Asia Pacific Small Cap ex Japan 1424 452.53 -0.1 -7.4 -9.4 644.17
-9.3 3.0 Consumer Services 386 357.94 -0.3 -0.3 -8.2 465.16 -8.1 1.8
Fixed Line Telecommunications (5) 5306.32 1.70 5373.26 5217.45 5263.53 4769.46 2.92 1.74 19.68 0.00 4601.91
Mobile Telecommunications (2) 4981.11 1.55 5043.95 4904.96 4961.55 5186.21 5.05 -0.44 -45.07 0.00 4658.68
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
960
2006
381.46
504.48
-0.8
-0.9
-9.3
-10.9
-11.2 606.52
-11.2 3.6 Food & Drug Retailers
-11.7 719.62
-11.7 3.5 General Retailers
53 278.24
121 486.55
-0.5
-0.3
-0.5
-0.3
-7.2 376.27
-8.7 616.97
-7.1
-8.7
1.9
1.6
UK STOCK MARKET TRADING DATA
Utilities (7) 8236.73 1.76 8340.64 8094.30 8160.01 8676.61 4.92 1.36 14.90 0.00 8771.87 FTSE Emerging Large Cap 500 473.18 -1.0 -11.5 -12.1 679.11
-12.1 3.6 Media 87 266.23 -0.4 -0.4 -8.0 346.77 -7.9 2.0 Jan 19 Jan 18 Jan 15 Jan 14 Jan 13 Yr Ago
Electricity (2) 8149.72 0.79 8252.53 8085.99 8154.67 8922.17 6.19 1.35 12.00 0.00 10841.46 FTSE Emerging Mid Cap 451 635.86 -0.8 -9.2 -10.5 902.77
-10.4 3.2 Travel & Leisure 125 350.43 -0.1 -0.1 -8.1 459.76 -8.1 1.9 SEAQ Bargains 4308.00 4615.00 4615.00 4615.00 4838.00 5172.00
Gas Water & Multiutilities (5) 7805.01 2.00 7903.47 7652.02 7713.43 8143.35 4.61 1.37 15.84 0.00 8344.98 FTSE Emerging Small Cap 1055 554.66 0.0 -8.6 -9.9 762.66
-9.9 3.2 Telecommunication 92 147.50 -0.9 -0.9 -6.3 260.58 -5.9 4.5 Order Book Turnover (m) 41.07 61.86 61.86 61.86 49.11 -
Financials (285) 4163.46 1.64 4215.98 4096.33 4129.81 4660.01 3.93 1.87 13.57 2.84 3638.77 FTSE Emerging Europe 99 234.78 -1.6 -12.5 -12.1 345.01
-12.0 4.7 Fixed Line Telecommuniations 44 126.53 -0.5 -0.5 -4.6 245.12 -3.9 4.9 Order Book Bargains 913590.00 1150925.00 1150925.00 1150925.00 1174401.00 205.00
Banks (9) 3377.94 1.84 3420.55 3316.90 3364.26 4217.98 4.86 1.37 15.06 0.00 2328.51 FTSE Latin America All Cap 243 528.03 -1.0 -13.2 -11.8 780.55
-11.7 4.1 Mobile Telecommunications 48 150.23 -1.6 -1.6 -8.8 239.73 -8.8 3.8 Order Book Shares Traded (m) 1394.00 1847.00 1847.00 1847.00 1851.00 1.00
Nonlife Insurance (11) 2708.87 1.21 2743.05 2676.55 2686.31 2300.24 2.78 2.06 17.46 0.00 4552.55 FTSE Middle East and Africa All Cap 220 534.64 -0.5 -12.8 -13.6 797.28
-13.5 3.2 Utilities 161 228.14 -0.7 -0.7 -3.8 418.31 -3.7 4.1 Total Equity Turnover (£m) 2768.02 0.00 0.00 0.00 3491.92 0.15
Life Insurance/Assurance (11) 7252.86 2.80 7344.36 7055.11 7042.87 7892.92 4.18 1.59 15.07 0.00 6658.20 FTSE Global wi UNITED KINGDOM All Cap In 324 294.21 -0.8 -8.8 -10.6 465.05
-10.5 4.1 Electricity 110 250.89 -0.6 -0.6 -3.1 455.32 -3.0 3.9 Total Mkt Bargains 1031072.00 2.00 2.00 2.00 1294568.00 329.00
Index- Real Estate Investment & Services (21) 2811.02 0.12 2846.48 2807.71 2838.82 2735.52 2.26 5.73 7.73 0.57 7228.01 FTSE Global wi USA All Cap 2004 458.76 0.0 -6.7 -8.5 588.40
-8.4 2.3 Gas Water & Multiutilities 51 238.80 -0.9 -0.9 -5.2 448.67 -5.1 4.6 Total Shares Traded (m) 4305.00 0.00 0.00 0.00 4767.00 3.00
Real Estate Investment Trusts (25) 2742.08 0.68 2776.68 2723.44 2748.72 2921.61 3.21 5.96 5.23 5.27 3246.55 FTSE Europe All Cap 1400 342.21 -1.1 -9.0 -10.3 523.01
-10.2 3.6 Financials 675 177.85 -0.9 -0.9 -11.4 276.46 -11.3 3.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 7149.09 1.38 7239.28 7051.58 7085.81 7277.90 3.24 2.19 14.06 24.67 7783.99 FTSE Eurobloc All Cap 637 322.18 -1.5 -9.5 -10.2 498.09
-10.2 3.4 Banks 243 155.31 -1.2 -1.2 -13.0 257.29 -12.9 3.9 (c) Market closed.
Equity Investment Instruments (176) 7245.93 0.85 7337.35 7184.75 7235.53 7587.28 2.79 1.08 33.24 7.10 3814.15 FTSE RAFI All World 3000 3006 4906.29 -0.7 -8.1 -9.6 6184.21
-9.5 3.5 Nonlife Insurance 71 198.51 -0.6 -0.6 -7.4 276.39 -7.4 2.5
Non Financials (354) 3777.01 1.45 3824.66 3723.18 3741.62 4134.73 3.95 1.40 18.14 0.41 5289.90 FTSE RAFI US 1000 998 8125.11 0.0 -6.3 -8.1 10281.97
-8.0 2.8 Life Insurance 51 171.07 -0.9 -0.9 -13.7 259.57 -13.7 3.3
Technology (19) 1347.77 1.53 1364.77 1327.44 1320.83 1264.86 1.50 1.98 33.70 0.00 1685.36 FTSE EDHEC-Risk Efficient All-World 3053 287.93 -0.6 -7.1 -8.7 387.12
-8.7 2.5 Financial Services 141 195.92 -0.4 -0.4 -11.9 261.12 -11.9 2.2 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1742.68 1.65 1764.66 1714.44 1721.89 1389.61 2.04 1.82 26.87 0.00 2284.42 FTSE EDHEC-Risk Efficient Developed Europe 521 252.25 -1.3 -8.1 -9.7 368.30
-9.6 3.0 Technology 185 158.41 -0.1 -0.1 -9.1 189.03 -9.1 1.9 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) 1472.48 1.43 1491.05 1451.66 1432.99 1566.69 1.03 2.25 42.94 0.00 1690.27 Software & Computer Services 85 284.48 -0.1 -0.1 -8.3 326.56 -8.3 1.2 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 100 113.70 0.0 0.0 -10.0 139.57 -10.0 2.7 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 5880.84 5869.88 5869.80 5881.62 5906.62 5905.38 5906.41 5877.08 5869.30 5915.46 5851.39 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 16131.08 16102.83 16127.84 16148.15 16163.31 16183.95 16162.73 16124.31 16106.41 16191.97 16082.14 (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 4333.29 4348.04 4348.88 4350.76 4354.30 4356.52 4357.48 4349.07 4327.94 4358.13 4321.44
FTSE All-Share 3234.14 3228.78 3229.61 3235.52 3247.07 3247.29 3247.05 3232.74 3228.10 3251.97 3220.21 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:13:06:00 Day's Low09:17:00 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5779.92(18/01/2016) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:13:06:00 Day's Low09:17:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3183.92(18/01/2016)
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 BlackRock North American Income Trust Pre 6.304 13.35 4.54 4.25 1.1 1 Jan 5 2.2 2 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- IG Group Holdings Int 232.5 216.5 98.6 101.4 20.97 21.53 8.45 8.45 Feb 26 28.15 30.85 12/24 144.00 AIM DNL Diurnal Group PLC 146.50 -2.00 155.00 148.00 7648.9
460p nil 19-01-16 752.00 741.00 RPC Group PLC 747.50 9.00 Unilever Pre 53272 48436 7220 7646 1.73 1.82 31.167 27.865 Mar 9 60.7 56 12/17 2.00 LVRT Levrett PLC 2.25 -0.18 3.10 1.75 215.4
12/17 100.00 AIM PURP Purplebricks Group PLC 75.50 0.00 106.50 75.00 18139.6
12/11 3.50 AIM WEY Wey Education PLC 4.25 0.00 4.37 3.88 399.4

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 20 January 2016 FINANCIAL TIMES 25

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) ArcherDan 31.17 -0.34 53.31 31.14 3.24 11.53 18600.38 Lockheed 215.75 -0.24 227.91 181.91 2.60 20.51 66299
ANZ 24.59 0.18 37.25 24.16 9.97 10.09 49638.7 Nokia 6.64 0.14 7.87 4.91 2.02 -47.72 28872.92 AstellasPh 1570.5 11.00 2047 1514.5 1.87 22.19 29624.95 AtlasCpcoB 174.80 1.10 270.00 170.80 1.63 15.98 7982.43 AT&T♦ 34.37 0.38 36.45 30.97 5.11 38.81 211444.86 Lowes♦ 69.78 0.79 78.13 64.22 1.34 24.06 63856
BHPBilltn 14.73 0.10 34.29 14.45 15.60 17.35 32732.46 SampoA 44.27 0.78 49.40 39.47 4.21 15.38 26960.72 Bridgestne 3988 25.00 5182 3753.5 2.76 12.60 27530.26 Ericsson 77.55 1.85 120.00 73.30 4.17 24.94 29994.3 AutomData 78.95 1.03 90.67 64.29 2.32 28.14 36412.26 Lyondell 74.57 -0.41 107.32 72.76 3.71 8.57 33515.03
CmwBkAu 79.19 0.80 96.69 70.15 7.46 14.99 93558.75 France (€) Canon 3307 29.00 4539 3234 4.44 17.95 37447.52 H&M 289.20 13.90 368.50 273.20 3.12 23.93 56014.52 Avago Tech 121.62 1.65 150.50 99.16 1.17 26.83 33625.28 Marathon Ptl 41.65 0.23 60.38 38.52 2.40 7.06 22198.37
CSL 103.69 1.00 107.18 81.48 1.34 27.27 33203.42 Airbus Grpe 56.72 0.87 68.50 46.04 2.02 16.38 48546.97 CntJpRwy 20595 -245.00 24800 18255 0.54 15.07 36019.61 Investor 282.40 2.30 363.40 275.70 3.03 14.42 25177.57 BakerHu 40.57 0.68 70.45 38.62 1.57 -69.66 17689.86 Marsh&M 52.61 0.40 59.99 50.90 2.59 20.53 27443.91
NatAusBk 27.03 0.34 39.71 26.39 9.85 11.68 49333.74 AirLiquide 93.67 0.15 123.95 93.37 2.50 19.95 35134.21 Denso 5160 39.00 6548 4927 2.19 17.27 38729.84 Nordea Bk 86.90 0.80 115.50 86.00 6.35 10.63 41186.51 BankAm 14.12 -0.34 18.48 14.07 1.32 11.33 147024.21 MasterCard♦ 87.19 -1.52 101.76 74.61 0.69 28.73 95929.36
Telstra 5.36 -0.02 6.74 5.06 7.99 15.64 45339.7 AXA 22.90 0.51 26.02 19.86 3.81 11.93 60558.33 EastJpRwy 10435 30.00 12815 8968 1.10 21.06 34773 SEB 79.55 1.80 111.50 77.60 5.68 10.43 20201.75 Baxter 35.37 0.27 43.44 32.18 4.42 11.35 19348.02 McDonald's 116.77 1.59 120.23 87.50 2.72 27.09 107221.7
Wesfarmers 39.70 -0.42 46.95 36.65 8.31 18.42 30932.96 BNP Parib 44.18 -0.15 61.00 43.96 3.25 8.01 60012.75 Fanuc 18650 340.00 28575 17855 3.81 19.37 32608.76 SvnskaHn 100.30 - 426.00 99.40 3.95 13.75 21970.73 BB & T 33.04 -0.11 41.90 32.73 2.88 13.11 25772.26 McGraw Hill 84.03 0.81 109.13 81.59 1.43-245.14 22713.31
Westpc 31.18 0.41 40.07 29.10 7.98 13.60 71963.94 ChristianDior 148.10 2.85 195.35 142.05 2.11 11.31 29331.9 FastRetail 37220 490.00 61970 35730 0.84 47.37 33519.22 Swedbank 171.30 1.50 223.90 169.00 6.30 12.77 22692.97 BectonDick 143.51 1.08 157.50 128.87 1.56 45.88 30447.91 McKesson 168.24 3.24 243.61 156.31 0.56 20.26 38713.55
Woolworths 23.35 -0.30 34.71 22.42 8.50 13.72 20533.03 Cred Agr 9.28 0.22 14.49 8.87 3.61 20.74 26699.33 Fuji Hvy Ind 4520 130.00 5223 3669 2.21 11.23 30042.49 TeliaSonera 39.14 1.02 55.85 37.76 7.29 12.29 19833.65 BerkshHat 192518.15 2518.15 227450187655.08 - 14.88 156157.05 Medtronic 74.80 0.88 79.50 55.54 1.68 46.75 105180.45
Belgium (€) Danone 59.71 1.03 67.74 51.73 2.31 42.87 42620.79 Hitachi 612.40 12.00 922.90 582.40 1.80 13.07 25130.63 Volvo 74.75 1.55 120.50 72.25 3.82 16.78 14197.06 Biogen 271.39 -1.94 480.18 254.00 - 18.99 60493.67 Merck 51.60 0.46 63.30 45.69 3.26 14.65 144146.83
AnBshInBv 109.85 2.40 124.20 87.73 2.61 23.06 192538.25 EDF 11.71 0.26 24.89 11.29 9.81 6.70 24505.03 HondaMtr 3441 31.00 4499 3374 2.35 12.32 52919.52 Switzerland (SFr) BkNYMeln 36.11 0.33 45.45 35.34 1.76 16.73 39466.52 Metlife 43.05 -0.03 58.23 40.97 3.15 8.93 47855.52
KBC Grp 51.14 0.26 66.00 45.95 3.74 8.82 23301.99 Engie SA 14.27 0.31 20.08 13.80 6.45 41.65 37860.57 JapanTob 4049 -92.00 4848 3162.5 2.31 19.16 68752.38 ABB 16.46 0.36 22.16 16.05 - 16.28 37965.89 BlackRock 296.44 -0.14 382.84 275.00 2.67 16.32 48613.95 Microsoft 50.87 -0.12 56.85 39.72 2.28 36.32 406345.14
Esslr Intl 111.15 1.70 125.15 93.87 0.84 42.21 26220.77 KDDI 2831 8.50 8550 2519 1.95 16.14 64676.42 CredSuisse 18.62 0.22 28.94 18.31 3.54 9.12 36317.47 Boeing 126.13 0.50 158.83 115.14 2.56 16.98 84505.04 Mnstr Bvrg 144.91 3.78 160.50 114.70 - 53.79 29375.98
Brazil (R$)
Hermes Intl 301.25 7.30 365.55 277.55 0.90 37.05 34660.17 Keyence 57130 230.00 70100 50700 0.33 30.58 29491.14 Nestle 71.25 1.20 77.00 64.85 2.98 16.35 226369.9 BrisMySq♦ 64.01 1.23 70.87 51.82 2.16 64.76 106787.01 MondelezInt 41.40 1.09 48.58 33.97 1.40 8.66 65791.53
Ambev 16.73 0.49 20.46 15.99 9.36 21.81 64969.08
LOreal 149.20 2.90 181.30 140.40 1.66 30.93 91012.53 MitsbCp 1855.5 -3.00 2837 1814.5 2.72 10.87 25048.93 Novartis 81.80 1.40 103.20 79.70 3.13 24.98 218203.41 Broadcom 53.31 0.37 58.51 40.21 0.95 24.81 29906.91 Monsanto♦ 90.42 -0.45 126.00 81.22 2.09 25.35 39816.94
Bradesco 18.58 0.31 32.40 18.19 4.99 6.81 11588.35
LVMH 140.00 3.25 176.60 130.75 2.10 13.44 77536.71 MitsubEst 2264 5.50 2975 2228.5 0.61 44.91 26725.46 Richemont 63.75 0.95 87.55 62.25 2.40 21.45 33159.78 CapOne 62.51 -0.34 92.10 61.84 2.09 9.41 33258.15 MorganStly 26.48 0.51 41.04 25.51 1.76 17.44 51271.21
Cielo 32.55 -0.09 46.27 30.83 2.01 16.33 15173.03
Nmrcble-SFR 34.85 0.34 60.01 32.19 - -44.81 16645.07 MitsubishiEle 1122.5 28.00 1718 1062 2.21 11.42 20463 Roche 259.80 3.40 283.90 238.80 2.97 25.92 181880.11 CardinalHlth 81.59 0.35 91.91 74.76 1.67 21.88 26841.57 MylanNV 50.34 0.63 76.69 37.59 - 30.09 24754.54
ItauHldFin 22.39 0.04 32.66 22.21 2.18 5.26 16856.07
Orange 15.41 0.29 16.98 12.21 3.58 44.09 44472.38 MitsuiFud 2689 1.50 3879 2626.5 0.96 24.06 22633.96 Swiss Re 94.20 1.75 99.75 76.85 4.49 39.18 34797.06 Carnival 50.60 0.77 55.77 42.51 1.91 30.58 29860.18 Netflix 106.15 2.11 133.27 46.38 - 303.71 45367.27
Petrobras 6.20 -0.10 16.26 6.16 - -2.45 11400.72
PernodRic 98.73 2.22 117.75 88.00 1.53 33.14 28559.52 MitUFJFin 646.80 -12.60 936.80 610.50 2.56 6.41 77806.28 Swisscom 482.20 7.20 580.50 471.10 4.38 18.44 24890.54 Caterpillar♦ 59.58 -0.29 89.62 58.75 4.50 13.18 34689.49 NextEraE 106.99 1.73 112.64 93.74 2.65 16.44 49272.74
Vale 9.37 0.48 27.89 8.80 24.78 -4.13 7448.02
Renault 76.62 2.45 100.25 59.59 2.28 9.00 24694.02 Mizuho Fin 213.40 -3.40 280.40 191.00 3.34 7.20 45067.7 Syngent 367.90 -6.20 435.20 281.60 2.87 25.90 34073.74 CBS 46.10 0.22 63.95 38.51 1.22 15.94 19993.7 Nike 58.73 1.17 68.20 45.35 1.15 30.38 79279.43
Canada (C$) Murata Mfg 14200 120.00 22220 12520 1.29 15.26 27157.47 Celgene 103.74 0.68 140.72 92.98 - 55.68 82006.68 NorfolkS 72.17 0.40 112.05 70.09 3.03 13.97 21547.78
Safran 56.23 0.94 72.45 54.33 1.96 -18.56 25556.45 UBS 17.04 0.29 22.57 13.99 4.22 10.99 65363.21
BCE 55.01 0.92 60.20 51.56 4.72 17.86 32784.37 NipponTT 4716 -28.00 5066 3245.5 1.85 18.12 83937.64 CharlesSch 27.16 0.14 35.72 25.43 0.83 29.30 35756.77 Northrop 184.89 0.68 193.99 151.27 1.52 19.10 33720.8
Sanofi 74.79 2.52 101.10 70.94 3.50 22.21 106426.9 Zurich Fin 246.70 4.40 334.60 232.60 - 12.85 36973.24
BkMontrl 71.70 0.88 80.76 64.01 4.59 10.73 31728.68 Nissan Mt 1114.5 15.00 1350 995.20 3.09 9.32 42775.73 ChevrnTx 83.67 - 112.93 69.58 4.78 19.46 157470.01 NXP 69.71 1.06 114.00 66.93 - 25.79 17549.6
Sant Gbn 36.71 1.08 44.84 33.40 1.55 26.78 22439.33 Taiwan (NT$)
BkNvaS♦ 53.12 0.74 67.72 52.07 5.17 9.34 44012.86 Nomura 610.90 8.60 909.20 587.20 3.46 9.35 19825.99 Cigna 140.57 4.34 170.68 105.23 0.03 18.44 36214.76 Occid Pet 62.90 0.11 83.74 58.82 4.36 -8.52 48038.99
Schneider 47.85 1.65 75.29 45.99 3.69 18.00 30642.86 Chunghwa Telecom 101.50 1.50 103.00 93.10 4.57 20.79 23399.49
Brookfield 40.56 0.16 48.64 39.56 1.54 10.69 27402.78 Nppn Stl 2166 66.50 3505 2066 2.76 9.69 17475.88 Cisco♦ 23.90 0.28 30.31 23.03 3.14 13.98 121582.96 Oracle♦ 34.54 0.42 45.33 33.66 1.55 17.67 145110.14
SocGen 35.84 0.94 48.77 34.11 3.20 10.31 31491.82 HonHaiPrc 75.30 0.40 99.70 73.10 4.59 8.23 34994.89
CanadPcR♦ 155.22 2.62 245.05 147.76 0.91 17.09 16338.57 NTTDCMo 2389.5 -8.50 2873.5 1921 2.69 21.73 82887.89 Citigroup 42.46 -0.01 60.95 41.85 0.26 10.25 126487.93 Pepsico 94.94 1.01 103.44 76.48 2.67 30.16 138313.41
Total 38.62 0.54 50.30 36.85 6.15 110.69 103288.74 MediaTek 216.50 6.50 505.00 195.50 9.70 11.11 10111.52
CanImp♦ 86.22 1.77 102.90 83.10 5.07 9.56 23589.2 Panasonic 1118 31.50 1853.5 1044.5 1.34 86.10 23284.06 CME Grp 86.40 1.69 100.87 82.33 2.13 24.75 29223.35 Perrigo 145.71 0.70 215.73 138.74 0.31 154.56 21332.25
UnibailR 222.05 2.45 262.00 212.30 4.04 13.71 23871.32 TaiwanSem 138.00 1.00 155.00 112.50 3.11 12.33 106343.09
CanNatRs 23.48 -0.44 42.46 23.42 3.94 59.02 17696.81 Seven & I 5073 -7.00 5998 4148.5 1.33 29.20 38179.06 Coca-Cola 41.99 0.49 43.91 36.56 2.88 28.85 182613.89 Pfizer 30.76 -0.05 36.46 28.47 3.34 24.75 189409.93
Vinci 59.05 1.71 62.60 46.39 2.76 18.33 37870.17
CanNatRy 72.14 -1.06 88.89 69.90 1.66 16.79 39180.85 ShnEtsuCh 5984 -142.00 8310 5801 1.61 20.16 21952.93 Thailand (THB) Cognizant 59.02 0.31 69.80 53.33 - 24.80 35974.42 Phillips66 79.37 0.90 94.12 59.00 2.49 9.93 42339.16
Vivendi 18.84 0.18 24.83 18.49 10.16-228.66 28087.93
Enbridge 44.47 0.93 66.14 40.17 3.97-113.39 26570.31 Softbank 5046 -65.00 7827 4964 0.73 11.70 51437.21 PTT Explor 211.00 13.00 382.00 197.00 4.87 -67.87 16611.67 ColgtPlm 64.30 0.95 71.56 50.84 2.15 25.48 57672.09 PhilMorris 87.50 1.21 90.27 75.27 4.29 20.14 135563.37
GtWesLif 32.82 0.50 37.70 30.42 3.96 11.85 22451.46 Germany (€)
Sony 2666.5 44.00 3970 2397.5 0.77 34.97 28576.86 United Arab Emirates (Dhs) Comcast♦ 54.14 0.25 64.99 50.01 1.68 18.18 113396.73 PNCFin♦ 86.47 0.14 100.52 82.60 2.14 12.47 44786.39
ImpOil 40.33 0.64 55.37 39.30 1.19 20.06 23540.85 Allianz 149.70 1.60 170.15 131.05 4.38 11.08 74559.59
SumitomoF 4055 -50.00 5770 3902 3.51 11.56 48681.88 Emirtestele 15.75 0.20 16.50 9.95 3.82 18.27 33904.22 ConocPhil 38.42 -0.94 70.11 37.94 7.12 -50.21 47434.95 PPG Inds 91.95 0.05 118.95 82.93 1.41 23.03 24759.3
Manulife 18.12 0.26 24.20 17.84 3.63 14.18 24606.42 BASF 61.17 0.38 97.22 60.61 4.38 11.60 61231.25
Takeda Ph 5530 -15.00 6657 5086 2.99 -30.94 37099.47 United Kingdom (p) Corning 16.75 -0.12 25.16 15.42 2.56 11.72 19814.99 Praxair 97.80 0.41 130.38 96.51 2.67 21.34 27857.89
Potash♦ 23.52 0.49 47.10 21.50 8.42 9.84 13525.49 Bayer 102.50 1.45 146.45 99.60 2.10 23.80 92377.78
TokioMarine 4088 31.00 5504 3771 2.41 17.74 26291.63 AscBrFd 3010 8.00 3606 2705.75 1.13 42.18 33704.47 Costco 151.24 0.85 169.73 117.03 0.97 30.17 66511.91 Prec Cast 232.00 -0.11 232.96 186.17 0.05 26.10 31918.83
RylBkC 68.02 1.15 81.53 66.51 4.60 9.97 69563.08 BMW 78.86 0.76 123.75 72.05 3.52 9.62 51738.68
Toyota 6804 62.00 8783 6556 3.04 10.16 192823.66 AstraZen 4312.5 102.00 4931.68 3746 4.31 48.71 77106.82 CrownCstl 80.24 1.12 89.44 75.78 3.82 56.05 26781.81 Priceline 1108.49 21.75 1476.52 990.69 - 24.80 55184.69
Suncor En 29.82 0.05 40.93 29.35 2.85 444.69 29685.3 Continental 194.40 1.50 234.25 171.30 1.60 15.28 42374.52
Mexico (Mex$) Aviva 474.80 11.70 578.68 428.40 3.81 12.42 27187.84 CSX 23.01 0.25 37.67 21.75 2.76 12.25 22433.48 ProctGmbl 76.34 1.36 91.79 65.02 3.20 27.32 207688.52
ThmReut 51.49 1.14 55.92 46.96 3.52 15.08 27111.76 Daimler 65.53 0.61 96.07 62.06 3.58 9.49 76405.3
AmerMvl 11.28 0.02 17.37 10.87 2.22 20.56 26067.06 Barclays 189.90 2.25 289.90 185.85 3.42 0.63 45136.49 CVS 95.27 1.37 113.65 81.37 1.30 22.93 105494.1 Prudntl 70.05 -0.12 92.60 68.64 3.09 9.79 31452.45
TntoDom 50.50 1.12 56.48 47.75 4.03 11.79 64553.18 Deut Bank 18.86 0.31 33.42 18.45 3.80 -6.46 28350.28
FEMSA UBD 158.90 1.56 169.74 124.27 0.69 30.92 31270.3 BG 939.90 11.30 1301.62 808.80 2.03 -18.15 45437.99 Danaher♦ 86.02 0.83 97.62 81.25 0.55 25.60 58948.24 PublStor 249.02 0.47 254.66 182.08 2.32 44.72 43054.53
TrnCan♦ 43.19 0.83 59.50 40.58 4.78 18.11 21087.99 Deut Tlkm 15.55 0.29 17.63 13.39 3.08 33.54 78044.38
WalMrtMex 44.20 0.69 47.00 28.32 1.22 33.78 42448.2 BP 342.45 1.95 499.25 252.55 7.86 -12.51 89030.98 Deere♦ 72.98 -0.14 98.23 71.85 3.01 13.81 23112.77 Qualcomm 46.01 0.19 74.09 45.13 3.65 15.30 69157.36
ValeantPh 128.78 -0.15 347.84 92.65 - 54.29 30258.64 DeutsPost 23.09 0.40 31.19 22.52 - 20.19 30478.83
BrAmTob 3647 35.00 3931.5 3231.5 4.06 16.93 96162.92 Delphi 68.27 0.80 90.57 65.76 1.37 15.40 19121.62 Raytheon♦ 120.70 0.41 129.99 95.32 2.02 19.09 36342.53
E.ON 8.83 0.63 14.85 7.08 1.52 -1.99 19254.14 Netherlands (€)
China (HK$) BSkyB 1049 17.00 1180 899.50 3.08 13.41 25505.28 Delta 46.36 1.86 52.77 34.61 0.82 14.30 36460.92 Regen Pharm 456.57 -6.38 605.93 393.00 - 96.65 46639.2
Fresenius Med 73.67 1.95 83.17 62.11 0.99 24.99 24978.26 Altice 12.87 0.17 47.73 9.98 - 240.87 11518.57
AgricBkCh 2.82 0.07 4.55 2.75 7.53 4.46 11085.96 BT♦ 467.75 8.35 502.60 404.00 2.44 17.63 55350.36 DiscFinServ 49.24 0.08 61.50 48.19 1.97 10.88 21049.3 ReynoldsAm 46.93 0.27 49.56 33.47 2.72 18.94 67060.58
Fresenius SE 59.30 1.16 70.00 46.20 0.71 27.02 35218.41 ASML Hld 73.80 1.33 104.85 70.25 0.91 23.94 34853.23
Bk China 3.05 0.06 5.68 2.97 7.27 4.74 32618.54 Compass 1164 21.00 1223.36 963.00 2.36 22.30 27073.26 Disney 94.28 0.38 122.08 90.00 1.79 20.59 155861.61 Salesforce 71.47 0.61 82.90 54.95 - -581.81 47456.08
HenkelKgaA 78.84 1.21 99.44 75.76 1.56 20.19 22322.58 Heineken 75.83 0.88 85.90 62.00 1.33 23.41 47602.64
BkofComm 4.75 0.07 8.61 4.66 6.63 4.60 21269.01 Diageo 1828 48.50 2055 1592.5 2.93 19.32 65036.13 DominRes 69.30 0.42 79.89 64.54 3.43 24.58 41256.62 Schlmbrg 64.00 0.99 95.13 61.71 2.77 25.90 80710.64
Linde 120.05 0.15 195.55 119.45 2.51 20.45 24300.61 ING 10.85 0.06 16.00 10.69 - 25.05 45759.47
BOE Tech 1.88 0.03 4.78 1.17 1.93 28.05 47.84 GlaxoSmh 1390 24.50 1645 1227.5 5.76 6.88 95741.37 DowChem♦ 42.87 -0.09 57.10 35.11 3.66 12.37 49647.83 Shrwin-Will 240.82 -1.28 294.35 218.27 0.99 24.71 22420.47
MuenchRkv 175.00 3.00 206.50 156.00 4.24 9.86 31821.02 Unilever 38.61 1.13 42.84 32.86 2.76 24.79 72154.01
Ch Coms Cons 6.79 0.42 17.00 6.13 2.90 6.89 3844.75 Glencore 78.98 3.83 318.46 66.67 14.49-183.67 16080.37 DukeEner 72.89 0.81 89.97 65.50 4.11 22.68 50172.97 SimonProp 185.63 1.46 208.14 170.99 2.89 37.18 57437.28
SAP 72.29 1.07 75.75 53.91 1.46 29.28 96787.76 Norway (Kr)
Ch Evrbrght 3.59 0.11 5.65 3.22 6.04 4.96 3153.64 HSBC 488.65 8.95 674.57 477.05 6.86 9.63 136032.36 DuPont 53.87 -0.22 76.61 47.11 3.14 16.57 47212.05 SouthCpr 22.43 -0.28 33.31 21.95 1.75 18.85 17614.5
Siemens 82.26 0.93 106.35 77.91 3.69 12.93 78982.36 DNB 96.00 2.35 143.00 92.75 3.99 7.01 17728.32
Ch Rail Cons 7.44 -0.05 17.70 6.91 2.35 6.82 1975.6 ImpTob 3559.5 -8.50 3665 2868.32 3.71 20.12 48267.08 Eaton 48.32 0.46 73.82 46.98 4.14 11.98 22362.5 Starbucks 58.76 0.76 64.00 39.50 1.02 34.54 87246.85
Volkswgn 121.75 3.30 254.50 95.00 3.77 10.11 39155.13 Statoil 105.40 2.90 161.70 100.40 6.60 -9.33 38104.49
Ch Rail Gp 4.95 0.18 12.30 4.59 1.84 8.72 2663.53 LlydsBkg 65.78 1.82 89.35 62.33 2.28 39.22 66481.41 eBay 25.50 0.24 29.83 22.11 - 11.03 30616.67 StateSt 55.04 0.07 81.26 53.77 2.17 13.79 22207.88
ChConstBk 4.74 0.09 7.98 4.63 7.41 4.49 145740.98 Hong Kong (HK$) Telenor 137.80 4.30 186.10 132.30 2.66 34.90 23458.01 Ecolab 103.56 0.98 122.48 100.52 1.19 29.73 30581.63 Stryker♦ 92.03 0.92 105.34 86.68 1.40 32.00 34559.31
Natl Grid 944.90 18.90 968.57 806.40 4.54 16.47 50079.42
China Vanke RMB 24.43 - 24.43 10.93 2.05 16.75 36586.73 AIA 42.45 1.10 58.20 38.85 0.96 20.92 65409.76 Qatar (QR) EMC♦ 24.63 -0.39 29.24 22.66 1.74 22.11 47743.87 Sychrony Fin 28.00 0.36 36.40 26.28 - 11.40 23347.12
Prudential 1392.5 46.00 1761.5 1045.99 2.65 14.17 50649.87
ChinaCitic 4.42 0.07 7.40 4.34 - 4.37 8412.59 BOC Hold 21.05 0.30 33.70 20.30 4.83 9.48 28462.88 QatarNtBk 150.90 1.40 208.50 148.10 4.77 9.77 28996.47 Emerson 43.29 0.20 62.75 42.17 4.06 11.57 28335.78 Target 69.78 -0.30 85.81 68.15 2.78 17.05 42988.08
RBS 264.60 4.40 414.00 257.80 - -11.86 43505.16
ChinaLife 20.80 0.60 41.00 20.05 2.21 13.22 19794.42 Ch OSLnd&Inv 23.00 1.00 34.05 20.70 2.17 6.99 29004.7 EOG Res♦ 62.28 -0.69 101.36 61.01 1.00 -9.58 34237.4 TE Connect 55.44 0.36 73.73 54.32 2.09 19.73 20745.49
Russia (RUB) ReckittB 6099 94.00 6450 5340 2.28 25.91 61034.67
ChinaMBank 15.14 0.22 26.85 14.90 5.16 5.68 8889.18 ChngKng 44.65 0.05 77.55 43.60 - 10.37 22039.92 EquityResTP 78.91 0.33 82.53 61.90 2.55 36.65 28743.9 Telsa Mtrs 208.51 3.52 286.65 181.40 - -41.89 27304
Gzprm neft 125.98 1.38 166.94 122.75 6.39 9.37 37972.55 RELX 1165 21.00 1232 988.50 2.23 26.76 33896.81
ChinaMob 82.80 2.70 118.00 79.00 3.19 13.73 216821.44 Citic Ltd 11.46 0.08 16.40 11.10 1.70 5.96 42635.27 Exelon 27.75 0.29 38.25 25.09 4.17 13.21 25517.91 TexasInstr 48.15 0.12 59.99 43.49 2.64 18.25 48843.94
Lukoil 2150 37.90 3297.7 2040.1 9.04 17.02 23283.62 RioTinto 1657 24.50 3280 1611.5 8.23 16.48 32203.12
ChinaPcIns 27.55 1.70 47.10 24.80 2.06 14.20 9778.44 Citic Secs 15.10 0.54 40.50 12.82 2.18 7.11 5635.7 ExpScripts 72.92 -1.67 94.61 68.06 - 24.24 49314.05 TheTrvelers 105.74 0.64 116.48 95.21 2.05 10.06 32168.1
MmcNrlskNckl 8540 250.00 12247 7840 17.58 9.47 17206.58 RollsRoyce 550.00 11.50 1061 504.50 4.20 -40.45 14303.47
ChMinsheng 6.82 0.15 11.88 6.61 3.16 4.64 6047.54 CK Hutchison 96.50 -0.20 174.90 96.30 3.43 4.19 47633.92 ExxonMb 77.65 0.07 93.45 66.55 3.42 17.56 323252.18 ThrmoFshr 135.18 2.42 143.65 117.10 0.41 29.44 53949.63
Novatek 561.80 2.30 646.30 410.80 11.66 45.80 21718.64 RylDShlA 1365 26.50 2216.5 1326 9.20 82.51 77051.37
ChMrchSecs RMB 16.99 0.49 40.00 13.85 2.38 10.09 12405.3 CNOOC 7.01 0.27 13.78 6.65 7.35 6.69 40026.89 Facebook 95.86 0.89 110.65 72.00 - 103.64 216609.76 TimeWrnr 70.22 0.57 91.34 62.94 1.82 17.28 57270.13
Rosneft 236.05 4.05 294.20 214.80 3.89 5.69 31852.29 SABMill 4138 15.00 4151 2773 1.80 34.28 94828.54
Chna Utd Coms RMB 4.87 0.15 10.74 4.27 1.34 34.26 15692.26 HangSeng 129.10 -0.90 162.10 126.90 3.93 10.19 31565.75 Fedex 127.99 1.07 185.19 124.84 0.66 34.75 35276 TimeWrnrC♦ 177.52 0.49 194.22 134.21 1.97 28.38 50273.23
Sberbank 86.68 0.53 110.70 57.20 0.58 8.35 23824 Shire 4223 -27.00 5870 3855 0.35 12.46 35384.39
ChShenEgy 10.88 0.22 22.50 10.52 7.81 7.94 4728.96 HK Exc&Clr 177.10 4.60 311.40 168.00 2.04 33.44 27372.59 FordMtr 12.08 0.11 16.74 10.44 4.45 10.84 47065.67 TJX Cos 68.18 0.67 76.93 63.53 1.03 22.68 45645.15
Surgutneftegas 33.78 0.10 39.80 26.03 - 1.14 15365.75 StandCh 491.00 1.90 1166 475.55 10.44 11.48 22765.96
ChShpbldng RMB 8.23 0.32 20.19 7.51 0.45-520.32 22467.07 MTR 36.40 -0.25 40.00 33.05 2.62 14.74 27271.28 Franklin 33.21 0.60 54.85 31.97 1.69 10.81 19947.02 T-MobileUS 38.12 0.33 43.43 28.54 - 67.59 31107.35
Saudi Arabia (SR) Tesco 159.10 -2.45 252.52 137.00 0.73 -2.29 18319.99
ChStConEng RMB 5.73 0.40 12.52 4.88 2.90 7.60 26044.46 SandsCh 23.15 0.65 40.55 21.60 7.80 13.90 23890.46 GenDyn♦ 127.25 1.26 153.76 124.57 2.43 15.36 40227.31 UnionPac 74.48 0.37 124.52 72.42 2.70 13.78 63614.9
AlRajhiBnk 47.90 0.93 69.00 45.00 3.64 13.00 20755.28 Vodafone♦ 216.80 3.35 258.00 201.25 5.18 -40.60 81429.39
ChUncHK 8.66 0.30 16.00 8.24 2.69 19.40 26522.11 SHK Props 85.85 1.50 137.60 83.55 2.54 8.62 31767.58 GenElectric♦ 28.63 0.14 31.49 19.37 3.00 59.45 289427.51 UPS B 91.01 0.97 114.40 88.42 2.93 22.38 63355.94
Natnlcombnk 41.85 1.87 72.75 37.80 1.78 10.16 22258.63 WPP 1447 27.00 1616 1273 2.64 14.95 26498.89
CNNC Intl RMB 8.17 0.32 14.38 4.07 - 23.78 4832.54 Tencent 139.80 3.80 171.00 123.30 0.24 41.12 168133.42 GenMills♦ 55.49 0.75 59.87 47.43 2.93 24.40 32924.72 USBancorp 39.37 0.32 46.26 37.97 2.37 13.36 68865.1
SaudiBasic 65.26 2.06 110.50 60.00 7.35 8.88 52204.53 United States of America ($)
CSR 7.71 0.34 20.70 7.00 - 18.07 4310 India (Rs) GenMotors 29.49 -0.08 39.00 24.62 4.18 11.59 45891.66 UtdHlthcre 113.01 3.74 126.21 95.00 1.45 19.20 107710.78
SaudiTelec 60.46 -0.60 73.25 52.75 6.18 13.24 32243.18 21stC Fox A 26.50 0.40 35.85 22.81 1.06 7.39 31024.93
Daqin RMB 7.63 0.28 15.15 7.28 6.08 8.31 17243.84 Bhartiartl 310.30 10.05 452.45 293.85 0.69 22.35 18338.15 GileadSci 90.51 -1.33 123.37 86.00 0.89 8.91 130441.22 UtdTech 85.10 -0.53 124.45 84.72 2.75 14.31 75485.48
Singapore (S$) 3M 139.24 0.55 170.50 134.00 2.64 19.30 85731.87
Gree Elec Apl 0.21 - 0.45 0.13 - -2.39 314.59 HDFC Bk 1035.8 9.95 1128 944.20 0.74 24.78 38667.71 GoldmSchs 157.05 1.44 218.77 153.81 1.49 11.05 66987.5 ValeroEngy 67.16 0.75 73.88 44.60 2.05 7.99 32337.77
DBS 14.48 0.25 21.50 14.06 3.91 11.62 25201.57 AbbottLb♦ 40.91 0.37 51.74 39.00 2.15 26.04 61026.26
GuosenSec RMB 16.83 0.61 34.94 13.76 1.15 10.56 5615.95 Hind Unilevr 810.45 0.50 981.00 769.00 1.72 39.04 25927.11 Halliburton 30.47 -0.38 50.20 29.64 2.21 106.02 26076.63 Verizon♦ 44.89 0.46 50.86 38.06 4.61 19.28 182651.72
JardnMt US$ 51.72 0.22 67.88 45.00 2.52 13.38 36325.78 Abbvie♦ 56.46 -0.88 71.60 45.45 3.19 34.98 92297.81
HaitongSecs 11.32 0.44 27.90 10.00 2.58 7.36 4936.1 HsngDevFin 1153 21.20 1402.3 1093.2 1.25 20.89 26911.29 HCA Hold 64.21 -0.06 95.49 43.91 - 14.38 26176.34 VertexPharm 95.82 -2.09 143.45 94.68 - -37.40 23544.63
JardnStr US$ 27.47 0.47 36.93 25.24 0.88 10.83 30575.45 Accenture 101.53 2.26 109.86 83.47 1.96 24.02 81855.85
Hngzh HikVDT RMB 28.56 0.30 56.48 25.90 1.35 21.03 13700.85 ICICI Bk 228.75 5.65 393.40 217.80 2.09 11.07 19656.28 Hew-Pack 9.81 -0.30 18.27 9.75 6.27 4.32 17578.03 VF Cp 54.25 -0.74 77.83 53.87 2.20 24.21 23125.14
OCBC 7.92 0.14 10.92 7.73 4.29 9.33 22684.36 Ace♦ 111.02 0.96 119.86 96.00 2.26 14.27 35990.63
Hunng Pwr 6.34 0.08 11.90 6.20 6.95 6.32 3811.16 Infosys 1139.65 7.75 2336 932.65 3.51 19.90 38509.85 HiltonWwde 17.55 -0.20 31.60 17.32 0.37 24.83 17329.78 Viacom 42.41 2.56 73.52 36.32 3.21 9.60 14723.33
SingTel 3.50 -0.03 4.57 3.40 4.72 15.27 38850.19 Adobe 90.41 1.24 96.42 69.04 - 100.77 45096.45
IM Baotou Stl RMB 3.21 0.07 7.50 3.08 - -42.49 7681.79 ITC 314.05 -1.35 409.95 294.00 1.97 25.41 37314.03 HomeDep 120.46 1.23 135.47 92.17 1.70 24.65 152728.98 Visa Inc 71.90 0.07 81.01 60.00 0.62 29.90 139949.21
UOB 17.52 0.42 25.05 17.01 4.58 9.41 19605.04 AEP 59.19 0.50 65.38 52.29 3.34 17.59 29051.48
In&CmBkCh 4.04 0.06 7.10 3.97 7.38 4.56 44844.75 L&T 1122.95 39.40 1893.8 1069.25 1.31 21.25 15459.9 Honywell 97.62 0.36 107.41 87.00 1.98 18.32 75234.9 Walgreen 81.09 1.16 97.30 73.00 1.62 20.99 87475.58
Aetna♦ 106.18 1.14 134.40 90.20 0.86 17.44 37024.97
IndstrlBk RMB 15.50 0.20 21.42 11.90 3.55 6.12 44892.45 OilNatGas 218.00 3.60 373.80 211.25 4.37 9.88 27573.92 South Africa (R) HumanaInc♦ 166.02 3.86 219.79 143.44 0.64 20.46 24607.4 WalMartSto 62.48 0.55 89.26 56.30 2.86 14.62 200054.29
Aflac 56.68 0.07 66.53 51.41 2.57 10.62 24187.55
Kweichow RMB 210.24 10.81 290.00 166.20 2.01 17.00 40148.23 RelianceIn 1043.6 26.75 1089.75 796.45 0.92 13.00 49976.95 Firstrand 40.00 1.00 58.47 34.08 5.89 8.15 13410.83 IBM 130.23 0.20 176.30 128.87 3.44 9.56 126337.44 WellsFargo 48.72 -0.10 58.77 47.75 2.78 12.62 250097.26
AirProd♦ 119.44 1.62 158.20 114.86 2.50 21.75 25738.12
Midea 1.89 0.06 2.68 1.65 4.80 13.11 51.98 SBI NewA 182.95 1.95 336.00 179.15 1.84 7.86 20996.45 MTN Grp 120.05 -0.45 250.00 113.29 12.86 5.81 13241.78 IllinoisTool 81.50 0.25 100.14 78.79 2.30 17.18 29624.58 Williams Cos 16.25 0.15 61.38 12.77 13.68 38.86 12183.68
Alexion 155.46 -3.22 208.88 142.02 - 150.80 35028.92
New Ch Life Ins 27.75 0.75 56.55 26.20 0.87 8.13 3670 SunPhrmInds 793.90 8.95 1200.8 704.00 - 69.53 28246.67 Naspers N 1905.64 93.64 2270 1521.98 0.28 53.00 49872.83 Illumina 171.24 0.09 242.37 130.00 - 53.54 25069.54 Yahoo 29.82 0.68 50.32 27.20 - 125.04 28160.67
Allegran 294.38 -0.86 340.34 237.50 - -42.78 116022.38
PetroChina 4.50 0.21 11.04 4.24 4.08 16.63 12142.63 Tata Cons 2279.3 1.65 2812.1 2250 1.72 21.18 66398.53 South Korea (KRW) Intcntl Exch 249.63 4.18 266.74 202.24 0.80 25.29 27400.56 Yum!Brnds♦ 67.91 0.82 95.90 66.35 2.25 34.76 29285.62
Allstate 58.76 0.63 72.87 54.12 1.88 10.96 22758.11
PingAnIns 36.55 1.85 62.90 34.30 2.16 10.21 34812.88 Indonesia (Rp) HyundMobis 245000 3000 262500 185500 1.16 13.02 19777.13 Intel 29.92 0.16 37.03 24.87 2.95 13.72 141211.36 Venezuela ()
Alphabet 721.61 11.12 798.69 503.09 - 35.66 210225.04
PngAnBnk RMB 10.71 0.30 17.50 9.30 1.57 7.05 19218.18 Bk Cent Asia 13075 100.00 15600 11000 1.00 20.63 23225.02 KoreaElePwr 51600 1000.00 54000 39850 0.92 2.85 27469.4 Intuit 91.70 0.21 109.21 79.63 1.05 61.09 24209.2 Bco de Vnzla 109.99 9.99 143.95 27.00 - - 29714.69
Altria 58.17 0.97 61.74 47.31 3.41 23.44 114042.92
Pwr Cons Corp RMB 7.10 0.65 20.00 6.31 1.36 14.46 3561.76 SK Hynix 28300 1600 51700 25800 1.01 4.70 16581.11 John&John 98.22 1.22 105.49 81.79 2.76 20.18 271769.2 Bco Provncl 3500 -649.99 4400 850.00 0.14 46.90 27955.27
Israel (ILS) Amazon 575.43 5.25 696.44 285.25 - 889.16 269739.72
SaicMtr RMB 20.01 0.52 29.18 14.00 6.28 7.92 33538.34 SmsungEl 1171000 45000 1510000 1033000 1.66 9.04 123404.75 JohnsonCn 35.29 0.58 54.52 33.62 2.75 17.34 22864.69 Mrcntl Srvcs 5000 - 5900 1310 0.15 39.25 22000.5
TevaPha 247.00 0.50 275.90 214.70 1.98 32.14 63773.45 AmerAir 39.19 0.43 56.20 34.10 0.95 6.03 24702.46
ShenwanHong 0.14 0.01 0.41 0.13 - -2.26 44.70 Spain (€) JPMrgnCh♦ 57.08 0.04 70.61 50.07 2.75 10.41 210118.89
Italy (€) AmerExpr♦ 62.80 -0.11 87.72 61.50 1.64 11.97 61810.64
ShgPdgBk RMB 17.77 0.09 20.12 11.91 4.12 6.95 50389.55 Kimb-Clark 125.81 0.45 130.05 103.04 2.58 81.12 45668.33 Closing prices and highs & lows are in traded currency (with variations for that
Enel 3.65 0.04 4.50 3.51 3.67 63.55 37364.99 BBVA 5.83 0.01 9.77 5.80 2.63 15.49 40431.86 AmerIntGrp 56.73 0.64 64.93 48.68 1.08 17.62 70175.72
Sinopec Corp 4.17 0.15 7.79 3.93 5.56 20.59 13606.32 KinderM 12.99 -0.01 44.71 12.75 13.37 25.93 28987.38 country indicated by stock), market capitalisation is in USD. Highs & lows are
ENI 12.58 0.17 17.66 12.31 7.30 -17.26 49825.7 BcoSantdr 3.92 -0.03 7.17 3.89 12.09 7.89 61714.24 AmerTower 90.45 2.06 104.12 86.83 1.75 72.32 38311.92
Sinopec Oil RMB 6.35 0.24 14.23 5.22 - -189.58 434.39 Kraft Heinz 70.24 1.04 81.20 61.42 0.73 -49.32 85233.13 based on intraday trading over a rolling 52 week period.
Generali 15.18 0.11 19.21 15.01 3.78 12.84 25756.72 CaixaBnk 2.81 -0.05 4.53 2.80 2.73 24.76 17816.75 Amgen 151.87 0.57 181.81 130.09 1.83 19.43 114559.77
Denmark (kr) Iberdrola♦ 6.25 0.12 6.71 5.61 2.37 16.75 43129.31 Kroger 38.34 -0.15 42.75 27.32 0.91 20.61 37370.87 ♦ ex-dividend
IntSPaolo 2.69 0.03 3.65 2.47 2.49 16.19 46495.36 Anadarko 32.38 0.36 95.94 31.50 3.11 -3.02 16453.66
DanskeBk 176.30 4.40 218.00 161.20 2.98 27.24 25966.85 Inditex 29.04 0.60 35.38 24.55 1.29 34.37 98622.43 L Brands 93.34 1.00 101.11 75.11 1.81 25.63 27015.81 ■ ex-capital redistribution
Luxottica 58.25 1.35 67.80 48.35 1.18 36.99 30704.05 Anthem 137.16 2.17 173.59 126.25 1.57 14.06 35796.51
MollerMrsk 7840 70.00 16450 7670 3.55 7.51 12184.7 Repsol 8.50 0.06 18.75 8.43 10.76 26.04 12972.52 LasVegasSd 38.81 0.09 61.59 35.97 5.89 14.95 30949.08 # price at time of suspension
Unicred 4.02 -0.14 6.61 3.88 2.86 13.15 26130.33 Aon Cp 86.45 0.36 107.08 85.09 1.19 21.15 23680.11
NovoB 366.80 3.80 415.00 274.30 1.30 29.99 110478.11 Telefonica 9.16 0.13 14.31 8.98 4.18 16.12 48560.72 LibertyGbl 33.09 -0.08 58.66 32.81 - -22.86 8362.44
Apple 96.46 -0.67 134.54 92.00 1.92 11.21 534821.22
Lilly (E) 84.04 2.80 92.85 68.31 2.21 40.72 93122.75

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 MTN Grp 120.05 120.50 -0.45 -0.37 -12112.95 -99.0 -10.65 Jan 19 date Coupon S* M* F* price yield yield yield US Jan 19 date Coupon S* M* F* price yield yield yield US
Glencore 78.98 75.15 3.83 5.10 6.98 9.7 1.48 Naspers N 1905.64 1812.00 93.64 5.17 -191894.36 -99.0 -7.81 High Yield US$ US$
GuosenSec 16.83 16.22 0.61 3.76 1.25 8.0 -15.43 Firstrand 40.00 39.00 1.00 2.56 -3911.00 -99.0 -5.35 CSC Holdings, LLC (Cablevision-U.S.) 02/18 7.88 BB Ba2 BB 93.10 12.07 -0.01 6.56 11.20 Halliburton Company 02/27 6.75 A A2 A- 119.00 4.59 0.00 0.00 2.53
Infosys 1139.65 1131.90 7.75 0.68 83.95 8.0 5.22 ExpScripts 72.92 74.59 -1.67 -2.24 -12.66 -14.8 -14.80 High Yield Euro Korea Electric Power Corporation 08/27 6.75 AA- Aa2 AA- 100.38 6.81 0.00 -0.16 4.75
JardnMt US$ 51.72 51.50 0.22 0.43 3.57 7.4 9.11 Anadarko 32.38 32.02 0.36 1.12 -4.95 -13.3 -28.75 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Anheuser-Busch Cos, Inc. 12/27 6.75 A- A2 A 119.86 4.62 0.00 0.57 2.55
JardnStr US$ 27.47 27.00 0.47 1.74 1.72 6.7 3.74 Renault 76.62 74.17 2.45 3.30 -10.60 -12.2 -16.64 FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 119.89 4.74 0.00 -0.07 -
BP 342.45 340.50 1.95 0.57 19.35 6.0 2.06 Deut Bank 18.55 18.55 0.00 0.00 -2.47 -11.7 -10.25 Emerging US$ E.I. du Pont de Nemours and Company 01/28 6.50 A- A3 A 115.06 4.89 0.00 0.37 -
SaicMtr 20.01 19.49 0.52 2.67 1.01 5.3 -3.33 Softbank 5046.00 5111.00 -65.00 -1.27 -649.00 -11.4 -17.36 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 112.94 4.64 0.00 -0.40 -
Kweichow 210.24 199.43 10.81 5.42 10.38 5.2 -3.06 Ch Rail Cons 7.44 7.49 -0.05 -0.67 -0.91 -10.9 -28.87 Brazil 01/18 8.00 BB+ Baa3 BB+ 103.98 5.87 0.00 0.00 4.99
Russia 07/18 11.00 BB+ Ba1 BBB- 116.93 3.89 0.00 0.44 3.01 Euro
Ch Evrbrght 3.59 3.48 0.11 3.16 0.17 5.0 -0.28 SBI NewA 182.95 181.00 1.95 1.08 -21.35 -10.5 -19.23 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 94.90 3.17 0.00 0.13 1.11
Lilly (E) 84.04 81.24 2.80 3.45 3.64 4.5 -0.74 NXP 69.71 68.65 1.06 1.54 -8.07 -10.4 -17.12 Peru 03/19 7.13 BBB+ A3 BBB+ 113.31 2.76 0.00 0.14 1.88
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 101.71 3.07 0.00 0.51 1.01
ShgPdgBk 17.77 17.68 0.09 0.51 0.72 4.2 -5.53 HiltonWwde 17.55 17.75 -0.20 -1.13 -2.01 -10.3 -18.08 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 108.36 2.38 0.00 0.05 -
SandsCh 23.15 22.50 0.65 2.89 0.85 3.8 -11.81 Marathon Ptl 41.65 41.42 0.23 0.56 -4.74 -10.2 -17.14 Brazil 01/21 7.88 BB+ Baa3 BB+ 93.92 6.30 0.00 0.00 4.82
Colombia 07/21 4.38 BBB Baa2 BBB 98.68 4.70 0.00 0.31 3.22 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 108.45 2.14 0.00 0.04 -
TaiwanSem 138.00 137.00 1.00 0.73 5.00 3.8 -2.82 Altice 12.87 12.71 0.17 1.30 -1.46 -10.2 4.80
Poland 03/22 5.00 A- A2 A- 110.11 3.21 0.00 0.12 1.72 Yen
Stryker 92.03 91.11 0.92 1.01 3.30 3.7 0.89 Unicred 4.16 4.16 0.00 0.00 -0.47 -10.2 -21.37
Turkey 09/22 6.25 - Baa3 BBB- 107.68 4.95 0.00 0.16 3.46 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Potash 23.03 23.03 0.00 0.00 0.82 3.7 -2.93 Petrobras 6.30 6.30 0.00 0.00 -0.70 -10.0 -28.41
Total 38.62 38.08 0.54 1.42 1.37 3.7 -8.07 BNP Parib 44.18 44.33 -0.15 -0.34 -4.77 -9.7 -16.94 Turkey 04/26 4.25 - Baa3 BBB- 92.48 5.27 0.00 0.18 3.21 £ Sterling
MediaTek 216.50 210.00 6.50 3.10 7.50 3.6 -16.41 Citigroup 42.46 42.47 -0.01 -0.02 -4.42 -9.4 -17.03 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 122.65 4.11 0.06 0.12 1.82
Pwr Cons Corp 7.10 6.45 0.65 10.08 0.24 3.5 -13.31 Hew-Pack 9.81 10.11 -0.30 -2.97 -1.01 -9.3 -14.81 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
ExxonMb 77.65 77.58 0.07 0.09 2.45 3.3 0.63 ArcherDan 31.17 31.51 -0.34 -1.08 -3.10 -9.0 -10.94 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.62 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 0.58 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- 113.75 4.06 0.00 0.08 2.00
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
Jan 19 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jan 19 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 25.90 -1.12 27.02 53.29 10.88 Jan 19 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 24.67 -0.90 25.57 56.32 7.04 Tr 2pc '16 100.00 2.00 0.00 455.56 545.16 455.56 101.66 100.00 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 171.29 0.04 -1.15 -1.15 -0.86 -3.76 VXN 28.90 -0.23 29.13 46.72 11.15 Tr 1.75pc '17 101.34 0.41 2.50 10.81 -6.82 -14.58 102.68 101.34 0.29
Euro Repo 0.05 10-09-2014 0.05 0.05 0.25 Corporates( £) 298.83 0.26 1.24 1.24 -0.05 0.57 VDAX 28.31 -2.32 30.63 30.63 - Tr 5pc '18 109.65 0.44 4.76 -6.38 -25.42 -36.23 113.51 109.34 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 250.49 0.01 0.41 0.41 0.41 0.41 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.86 0.66 3.13 -9.59 -22.35 -25.84 115.07 111.04 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 211.61 0.09 0.15 0.15 -0.18 -0.68 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.62 0.89 3.49 -5.32 -16.04 -16.04 119.04 114.45 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 226.44 0.21 0.50 0.50 -0.03 1.84 Tr 1.5pc '21 101.60 1.17 2.63 -4.88 -12.69 0.86 142.92 99.91 0.12
Gilts( £) 291.59 0.29 1.65 1.65 0.02 0.80 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 116.45 1.21 2.54 -3.97 -11.03 -3.20 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 239.69 0.25 0.57 0.57 -1.44 -3.55 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 128.99 1.58 1.28 -3.07 -8.67 4.64 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 298.75 0.25 1.30 1.30 0.09 0.63 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 125.45 1.85 0.54 -2.63 -7.04 8.82 131.90 119.79 0.31
Jan 19 (Libor: Jan 18) night Day Week Month month month month year Overall ($) 226.35 0.09 0.59 0.59 0.59 0.59 Australia 10/18 3.25 103.54 1.92 0.01 -0.06 -0.13 -0.25 Tr 4.25pc '32 128.01 2.20 0.92 -1.35 -4.76 12.82 136.85 121.93 0.35
US$ Libor 0.36610 0.000 0.000 0.001 0.42600 0.62380 0.85325 1.14630 Overall( £) 291.03 0.28 1.54 1.54 0.04 0.75 04/26 4.25 113.57 2.72 0.01 -0.04 -0.11 0.02 Tr 4.25pc '36 129.66 2.39 0.84 -0.83 -3.63 14.35 140.37 123.52 0.28
Euro Libor -0.28429 0.000 0.000 0.000 -0.22357 -0.14857 -0.06357 0.04643 Overall(€) 221.64 0.17 0.43 0.43 -0.03 1.18 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 4.5pc '42 139.50 2.48 0.81 -0.80 -3.13 14.81 153.16 132.20 0.26
£ Libor 0.48125 0.001 0.004 0.000 0.51038 0.58938 0.74563 1.02125 Treasuries ($) 218.39 0.14 0.73 0.73 0.73 0.73 10/25 1.20 103.78 0.80 0.01 -0.04 -0.09 0.00 Tr 3.75pc '52 132.59 2.40 0.42 -1.23 -3.23 9.59 145.21 121.95 0.22
Swiss Fr Libor 0.000 -0.78800 -0.75300 -0.68100 -0.60500 FTSE Belgium 06/18 0.75 101.79 0.00 0.00 0.00 0.00 0.00 Tr 4pc '60 144.82 2.36 0.43 -0.84 -3.28 8.76 159.23 131.72 0.22
Yen Libor 0.000 0.04857 0.08229 0.11300 0.22114 Sterling Corporate (£) 110.44 -0.27 - - -0.10 -5.47 06/26 1.00 99.87 1.01 0.00 0.00 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.001 -0.22200 -0.14200 -0.05400 0.04900 Euro Corporate (€) 104.96 -0.09 - - -0.78 -5.10 Canada 11/17 0.25 99.90 0.31 0.00 0.00 0.00 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.50000 0.60000 0.79500 Euro Emerging Mkts (€) 758.42 5.71 - - -10.61 -22.38 06/26 1.50 102.12 1.28 0.00 0.00 0.00 0.00
US$ CDs
Euro CDs
0.000
0.000
0.42000
-0.22500
0.59000
-0.16500
0.83000
-0.05500
Eurozone Govt Bond 113.80 -0.06 - - -0.18 -2.02 Denmark 11/18 0.25 101.33 -0.22 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 1.75 108.83 0.81 0.01 -0.06 -0.06 0.22
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 99.67 1.15 0.00 -0.08 -0.15 0.00
Fixed Coupon Jan 19 chg % Return 1 month 1 year Yield
Jan 19 term notice month month month year Markit iTraxx 09/25 0.88 100.77 0.79 0.00 -0.05 -0.11 0.00
1 Up to 5 Years 98.69 -0.05 2380.58 0.44 1.36 0.77
Euro -0.35 -0.25 -0.35 -0.25 -0.30 -0.15 -0.24 -0.09 -0.15 0.00 -0.05 0.10 Crossover 5Y 377.15 -9.59 24.25 43.30 389.82 280.05 France 05/19 1.00 103.88 -0.16 0.00 0.00 0.00 0.00
2 5 - 10 Years 181.57 -0.14 3286.61 0.94 1.71 1.43
Sterling 0.40 0.55 0.40 0.55 0.45 0.55 0.55 0.65 0.72 0.87 1.01 1.16 Europe 5Y 95.84 -1.23 9.47 15.06 97.07 68.39 11/20 0.25 101.02 0.04 0.00 -0.03 -0.04 0.00
3 10 - 15 Years 207.50 -0.17 3864.83 1.16 0.65 1.96
Swiss Franc - - - - - - - - - - - - Japan 5Y 85.38 -0.75 2.21 13.94 86.57 65.01 11/25 1.00 101.17 0.88 0.00 -0.04 -0.08 0.00
4 5 - 15 Years 187.68 -0.15 3426.06 1.00 1.37 1.64
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 90.03 0.19 9.10 13.48 99.56 65.28 05/45 3.25 129.95 1.91 0.00 -0.02 -0.02 0.35
5 Over 15 Years 300.19 -0.28 4376.38 1.12 -2.26 2.41
US Dollar 0.32 0.42 0.32 0.42 0.40 0.50 0.60 0.70 0.80 0.90 1.10 1.20 Germany 04/19 0.50 102.72 -0.34 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 173.64 -0.17 3264.23 0.87 -0.20 2.12
Japanese Yen -0.05 0.05 -0.05 0.05 -0.15 0.05 -0.10 0.10 -0.10 0.10 0.00 0.20 10/20 0.25 101.96 -0.16 0.00 0.00 0.00 0.00
Emerging Markets 5Y 400.12 0.00 19.65 38.72 400.12 299.17 08/25 1.00 104.81 0.48 0.01 -0.05 -0.12 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 554.49 0.00 33.74 41.44 554.49 416.39 08/46 2.50 129.41 1.32 0.01 -0.03 -0.06 0.18
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jan 19 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 109.69 0.00 11.24 14.57 109.69 75.52 Greece 07/17 3.38 89.25 11.63 1.15 3.17 3.99 0.68
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 283.44 100.00 1 Up to 5 Years 308.12 0.03 -0.22 -1.95 2363.93 0.20 -0.53
02/26 3.00 65.08 8.97 0.15 0.64 0.94 -0.59 2 Over 5 years 569.09 -0.46 -0.67 -4.22 4205.73 -0.55 -3.51
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.16 -0.31 0.00 0.00 0.00 0.00 3 5-15 years 427.75 -0.04 -0.17 -3.89 3261.41 0.17 -2.63
05/26 1.00 98.81 1.12 0.00 -0.04 0.00 0.00 4 Over 15 years 701.86 -0.63 -0.87 -4.22 5086.92 -0.83 -3.71
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.55 0.10 0.02 0.02 -0.07 0.00 5 All stocks 526.95 -0.39 -0.61 -3.88 3945.97 -0.44 -3.06
11/20 0.65 100.38 0.57 0.01 -0.04 -0.07 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 103.91 1.58 0.01 -0.04 -0.07 0.00 Yield Indices Jan 19 Jan 18 Yr ago Jan 19 Jan 18 Yr ago
Crude Oil† Feb 30.65 0.67 Corn♦ Mar 368.00 4.75 Jan 18 Jan 18 Prev return stock Market stocks
09/46 3.25 112.08 2.69 0.01 -0.04 0.02 0.00 5 Yrs 1.02 1.00 1.01 20 Yrs 2.43 2.41 2.10
Brent Crude Oil‡ 29.30 0.52 Wheat♦ Mar 477.25 4.25 Can 4.25%' 21 126.76 -0.272 -0.298 -0.35 5.18 70501.16 7
Japan 01/18 0.10 100.24 -0.02 0.00 0.00 0.00 0.00 10 Yrs 1.77 1.75 1.57 45 Yrs 2.38 2.37 2.20
RBOB Gasoline† Jan 1.05 0.02 Soybeans♦ Mar 887.75 9.75 Fr 2.25%' 20 113.26 -0.636 -0.611 -0.80 20.31 212114.31 14
02/21 0.05 100.06 0.04 0.00 0.00 0.00 0.00 15 Yrs 2.22 2.21 1.92
Heating Oil† Jan 0.93 0.00 Soybeans Meal♦ Mar 272.80 3.10 Swe 0.25%' 22 107.80 -0.799 -0.811 0.62 32.00 234609.26 7
12/25 0.30 100.81 0.22 0.01 -0.01 -0.06 0.00
Natural Gas† Jan 2.13 0.01 Cocoa (ICE Liffe)X Mar 2144.00 30.00 UK 2.5%' 20 357.89 -1.161 -1.189 0.87 6.58 489342.76 25
12/45 1.40 104.11 1.21 0.01 0.02 -0.06 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2928.00 22.00 UK 2.5%' 24 337.60 -0.772 -0.809 1.58 6.82 489342.76 25
Netherlands 04/17 0.50 101.11 -0.40 0.00 0.00 0.00 0.00 Real yield Jan 19 Dur yrs Previous Yr ago Jan 19 Dur yrs Previous Yr ago
Uranium Jan 36.75 0.00 Coffee(Robusta)X Jan 1364.00 -8.00 UK 2%' 35 229.37 -0.723 -0.735 2.01 9.08 489342.76 25
07/25 0.25 96.14 0.67 0.00 -0.05 -0.09 0.00 Up to 5 yrs -0.80 2.32 -0.88 -1.11 -1.62 2.34 -1.59 -1.80
Carbon Emissions - - Coffee (Arabica)♥ Mar 116.35 1.35 US 0.625%' 21 101.45 0.359 0.359 0.65 35.84 1121574.57 36
Diesel Mar - - White SugarX 425.90 -0.90 New Zealand 03/19 5.00 107.37 2.55 0.01 -0.05 -0.22 -0.88 Over 5 yrs -0.78 23.42 -0.81 -0.94 -0.81 23.52 -0.83 -0.98
US 3.625%' 28 131.60 0.895 0.359 0.54 16.78 1121574.57 36
Unleaded (95R) - - Sugar 11♥ 14.95 0.08 04/27 4.50 111.39 3.28 -0.01 -0.08 -0.29 -0.20 5-15 yrs -0.68 9.57 -0.71 -1.02 -0.81 9.58 -0.81 -1.17
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/19 4.50 112.67 0.64 0.01 0.00 -0.09 -0.19 Over 15 yrs -0.79 29.01 -0.82 -0.93 -0.81 29.06 -0.83 -0.96
Base Metals (♠ LME 3 Months) Cotton♥ Mar 61.87 0.48 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 1.75 103.13 1.38 0.03 0.00 -0.10 0.00 All stocks -0.78 20.35 -0.81 -0.94 -0.83 20.51 -0.84 -0.99
Aluminium 1488.00 1.50 Orange Juice♥ Mar 128.00 0.05 amount.
Aluminium Alloy 1620.00 15.00 Palm Oil♣ Jan 562.00 - Portugal 06/19 4.75 113.32 0.76 0.01 0.00 0.04 -0.67 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4413.00 33.00 Live Cattle♣ Feb 127.58 0.00 BONDS: TEN YEAR GOVT SPREADS 07/26 2.88 98.96 2.99 0.00 0.00 0.00 0.00
Lead 1625.50 15.50 Spain 04/18 0.25 100.23 0.15 0.01 0.00 -0.10 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Jan 154.30 -4.35
Nickel 8690.00 140.00 Lean Hogs♣ Feb 62.00 0.00 Spread Spread Spread Spread 04/26 1.95 100.96 1.85 0.00 0.00 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 13265.00 -35.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.44 1.21 0.00 -0.11 -0.17 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1515.00 19.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 115.03 0.82 0.04 -0.04 -0.21 0.06 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jan 18 Month Year Australia 2.72 2.24 0.66 Italy 1.58 1.09 -0.49 Switzerland 05/19 3.00 113.02 -0.86 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1086.25 -2.95 S&P GSCI Spt 281.12 -8.46 -28.12 Austria 0.80 0.31 -1.27 Japan 0.22 -0.27 -1.85 05/26 1.25 114.57 -0.15 0.00 0.00 0.00 0.00
Silver (US cents) 1403.00 15.00 DJ UBS Spot 74.02 -4.36 -28.30 Belgium 1.01 0.53 -1.05 Netherlands 0.67 0.19 -1.39 United Kingdom 07/18 1.25 101.47 0.66 0.05 -0.01 -0.18 -0.18 Data provided by Morningstar | www.morningstar.co.uk
Platinum 834.00 18.00 R/J CRB TR 161.25 -6.48 -28.17 Canada 1.28 0.80 -0.78 Norway 1.38 0.90 -0.68 01/21 1.50 101.52 1.19 0.04 -0.03 -0.19 0.00
Palladium 499.00 4.00 Rogers RICIX TR 1841.66 - - Denmark 0.81 0.33 -1.25 Portugal 2.99 2.51 0.93 09/25 2.00 102.40 1.73 0.03 -0.02 -0.15 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Finland 0.79 0.31 -1.27 Spain 1.85 1.37 -0.21 01/45 3.50 120.11 2.52 0.02 -0.01 -0.08 0.31
Iron Ore (Platts) 42.75 0.10 UBS Bberg CMCI TR 11.07 -7.82 -28.82 France 0.88 0.39 -1.19 Switzerland -0.15 -0.63 -2.21 United States 12/17 1.00 100.23 0.88 0.02 -0.06 0.00 0.00
Iron Ore (The Steel Index) 42.10 0.20 LEBA EUA Carbon 7.22 -9.98 1.12 Germany 0.48 0.00 -1.58 United Kingdom 1.73 1.24 -0.34 12/20 1.75 101.27 1.48 0.03 -0.06 0.00 0.00
GlobalCOAL RB Index 50.05 1.05 LEBA CER Carbon 0.40 -18.37 -13.04 Greece 8.97 8.49 6.91 United States 2.06 1.58 0.00 11/25 2.25 101.64 2.06 0.01 -0.06 -0.17 0.00
Baltic Dry Index 363.00 -6.00 LEBA UK Power 1150.00 -39.47 -47.37 Ireland 1.12 0.64 -0.94 11/45 3.00 103.34 2.83 0.00 -0.07 -0.13 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.
26 FINANCIAL TIMES Wednesday 20 January 2016

FINANCIAL TIMES SHARE SERVICE

Main Market
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence HBM Hlth SFr 98.10 -1.65 113.50 90.55 - 23.04 8.8 Renold 49.00 - 86.00 49.00 - 19.18 40.0 Antofagasta 355.50 5.50 811.50 343.10 3.84 23.09 4425.8 MucklGp 484.50 -5.50 530.00 445.00 4.23 5.44 52.6 Intserve 474.40 0.80 878.50 470.99 4.85 12.89 162.0
AvonRub 1002 -13.00 1180 687.39 0.62 18.35 19.8 HenderGp 268.20 5.90 314.30 215.13 3.36 18.71 2147.6 Rotork 160.50 1.40 267.20 157.60 3.12 13.98 3612.9 ..5%Pf 0.60 - 0.60 0.60833.33 - - PrimyHth♦ 103.00 -1.25 113.50 91.50 4.79 11.55 632.5 Intertek 2725 70.00 2949 2241 1.80 23.14 462.4
BAE Sys 506.00 -3.00 549.00 419.30 4.05 22.86 10798.9 ICAP♦ 454.20 2.40 573.00 420.60 4.84 22.56 1036.8 Severfd 61.50 -0.50 75.00 57.00 0.81 133.99 95.3 AquarsPl 12.50 0.50 15.25 5.53 - -2.98 10859.2 Redefine 47.50 0.15 59.90 46.58 6.95 9.32 1116.1 Lavendon 129.00 3.00 211.50 120.75 3.57 13.60 194.6
Chemring 180.25 -6.00 240.45 131.00 2.27 -20.62 97.3 Indvardn SKr 130.30 2.10 183.50 126.40 4.56 12.51 998.3 SKF SKr 125.60 1.80 231.70 121.80 4.17 13.85 4072.4 Barrick C$ 10.88 -0.74 16.54 7.89 1.25 -3.05 2774.0 SEGRO 418.10 5.30 466.70 398.90 3.61 3.91 1218.1 MngCnslt 14.63 - 19.00 13.25 5.64 -71.34 117.9
Cobham 259.70 0.70 349.10 250.50 4.10 -150.81 2530.2 ICG 588.50 16.50 712.83 485.70 4.36 9.22 1322.2 Spirax-S 2947 31.00 3767.56 2738 2.27 22.61 84.3 BHP Bltn 627.10 18.30 1670.5 601.70 12.70 15.10 14412.8 Shaftbry 861.00 1.00 975.50 777.00 1.56 5.14 398.4 MearsGp 430.00 -20.75 475.00 375.00 2.33 16.62 35.0
Meggitt 355.90 3.80 593.50 337.60 3.86 14.81 2869.0 IPF 244.00 0.10 512.00 230.00 4.92 7.09 456.9 Tex 106.50 - 130.00 86.30 5.63 7.57 18.9 BisichMg♦ 69.50 -8.00 94.75 60.15 5.76 5.35 16.0 Town Ctr 300.00 -5.00 336.75 266.00 3.48 6.64 11.9 MenziesJ 407.00 6.75 525.00 350.00 3.98 36.19 28.4
RollsRoyceX 550.00 11.50 1061 504.50 4.20 -40.45 4401.5 Investec 423.00 8.30 649.50 406.70 4.73 12.07 1483.9 Trifast 112.00 -1.13 134.00 94.49 1.88 13.40 397.8 EVRAZ 61.95 3.40 209.90 58.00 - -1.20 2287.2 Wkspace♦ 855.50 15.50 989.50 769.33 1.41 3.97 158.8 MichaelPge 392.50 5.60 568.00 386.30 2.80 18.99 503.7
Senior 212.00 1.00 361.70 203.70 2.66 14.26 617.9 Jupiter 391.30 2.10 481.30 344.92 3.37 11.70 1405.9 Vitec 566.00 -4.00 670.85 565.00 4.24 22.40 5.5 Fresnillo 664.50 -10.00 939.50 569.63 0.29 140.49 1547.6 Real Estate Inv & Services MITIE♦ 282.60 6.80 341.00 265.89 4.14 14.14 1117.0
UltraElc 1857 15.00 2044 1627 2.39 -162.91 76.9 Liontrust 265.00 -5.00 393.50 260.82 3.02 19.65 10.8 Weir 840.50 10.00 2045 825.60 5.23 - 942.4 GemDmnd 102.50 2.50 182.00 94.75 3.10 8.40 72.5 Cap&Count 372.20 -0.40 475.10 366.60 0.40 5.47 1878.7 PayPoint 842.00 -8.50 1112.15 779.82 4.57 28.55 27.8
Man 155.70 5.10 217.80 138.60 4.09 10.55 5227.3 Harmony R 27.45 -1.25 38.50 7.92 - -2.12 2478.5 CLS 1616 -62.00 2037 195.00 - 3.44 5.7 PremFarn 95.25 0.50 204.60 87.75 10.92 8.02 595.6
Automobiles & Parts NB GFRIF 90.80 0.30 98.85 90.10 4.09 23.24 917.4
Industrial General Hochschild 39.50 -0.50 134.25 38.75 - -2.75 440.5 Rentokil 152.40 2.30 162.50 119.50 1.70 21.34 2854.8
BritPoly 665.00 -10.00 755.00 620.00 2.41 10.69 3.9 Daejan 6030 55.00 6614.2 5323.5 1.36 6.21 2.4
FordMtr $X 12.00 0.03 16.74 10.44 4.45 10.84 23823.1 Paragon♦ 302.50 0.60 461.50 296.70 3.17 8.69 1196.1 Kenmr 0.59 - 4.92 0.27 - -0.27 5916.2 Grainger♦ 221.70 3.00 256.00 185.00 1.14 21.57 715.5 Ricardo 812.00 -23.00 967.50 640.00 1.92 23.09 24.3
GKN 286.70 5.20 389.00 248.56 2.93 31.91 3564.9 Providnt 2932 29.00 3654 2424 3.34 21.88 338.3 Coats Group 23.00 - 30.90 20.85 - -343.28 543.0 Lonmin 39.25 1.00 18970 38.24 - -0.02 2771.8 RbrtWlts 347.00 -15.00 478.00 326.00 1.73 20.23 15.6
ExovaGroup 139.50 2.50 199.12 134.50 1.43 19.99 26.0 HelclBar 417.50 -4.75 475.50 373.00 1.74 4.43 212.5
RathbnBr 2215 46.00 2373 2014 2.35 28.53 14.9 Petra 76.00 - 192.60 52.77 - 13.01 2249.6 HK Land $ 6.18 -0.03 8.80 6.13 2.76 12.65 3309.7 RPS 218.50 -2.00 271.37 181.50 3.88 15.45 195.5
Banks JardnMt $X 51.72 0.22 67.88 45.00 2.52 13.38 371.1
Record 22.50 0.25 41.00 20.30 7.33 8.11 86.2 Petropvlsk 5.23 -0.20 18.89 4.21 - -0.76 2104.0 Lon&Assc 24.50 - 42.52 23.50 0.64 -3.46 165.1 Shanks 90.00 -1.25 113.50 88.00 3.83 -47.15 110.5
ANZ A$X 24.59 0.18 37.25 24.16 9.97 10.09 5248.8 Jard Str $X 27.47 0.47 36.93 25.24 0.88 10.83 274.2
S&U 2210 - 2595 1962 2.99 13.14 1.2 PolymtIntl 528.00 -2.00 634.00 424.20 2.57 -16.28 289.8 MacauPrp 136.00 -3.75 231.25 134.00 - -3.21 21.6 SIG 130.80 -2.30 212.20 117.00 3.36 23.43 4404.9
BcoSant 301.75 3.75 526.19 297.15 12.14 7.87 1099.0 Macfrlne 55.50 3.25 60.00 35.60 2.97 13.46 109.6
Schroder 2590 67.00 3441 2495 3.01 15.90 272.7 RndgldRs 4268 -104.00 5752.1 3546 0.91 31.01 565.7 Mntview 11300 -100.00 12900 10000 2.43 12.30 0.5 SpeedyHr♦ 40.25 0.25 77.30 27.94 1.74 -14.64 408.7
BnkGeorgia 1687 34.00 2345 1609 2.65 8.30 68.0 REXAM 611.00 6.00 615.01 424.60 2.90 21.61 1963.3
..N/V 1968 57.00 2629 1904 3.96 12.08 2.4 RioTintoX 1657 24.50 3280 1611.5 8.23 16.48 5743.4 RavenRuss 37.00 -0.50 58.56 37.00 - -2.61 69.6 St Ives 215.00 -2.00 227.63 156.68 3.33 61.73 75.8
BankIre € 0.30 - 0.39 0.07 - 15.06 13338.1 RPC♦ 747.50 9.00 864.50 534.00 1.91 38.31 888.6
SVG Cap 462.40 5.00 535.00 420.00 - 11.54 288.4 Troy Res A$ 0.20 - 0.77 0.20 - -0.43 1269.6 RavenR Prf 126.50 - 146.00 120.51 9.49 - 23.4 TribalGrp 22.50 -0.38 188.00 19.16 8.00 -3.83 127.9
BkNvaS C$X♦ 53.12 0.74 67.72 52.07 5.17 9.34 1911.4 Smith DS 371.50 5.70 423.70 304.30 3.07 27.00 1701.2
TullettPre 316.10 -4.90 415.90 287.10 5.33 6.75 317.2 VedantaRs 214.40 8.60 695.06 200.70 19.42 -0.42 852.2 RavenR Wrt 23.50 -1.00 34.00 22.00 - - 0.3 Vp 725.00 -10.00 816.00 582.85 2.28 14.62 4.7
BarclaysX 189.90 2.25 289.90 185.85 3.42 0.63 35139.3 Smiths 889.50 7.50 1243 874.00 4.55 14.41 801.5
WlkrCrip 44.00 -1.25 55.00 39.70 3.86 26.17 14.1 Safestre 338.00 4.90 370.00 252.00 2.20 6.95 391.9 Watermn 92.00 0.50 98.49 56.15 1.52 20.91 42.1
CanImp C$X♦ 86.22 1.77 102.90 83.10 5.07 9.56 542.6 SmurfKap € 22.58 0.30 30.31 19.97 2.54 18.60 389.1 Oil & Gas Wolseley 3367 72.00 4398 3293 2.53 27.29 740.1
HSBCX 488.65 8.95 674.57 477.05 6.86 9.63 25729.9 Food & Beverages Vesuvius 291.80 -1.60 530.00 282.80 5.53 8.21 286.7 Aminex 1.60 - 2.49 1.25 - -18.82 1310.2 Savills 790.00 -9.50 991.46 695.00 1.39 18.46 296.5
LlydsBkgX 65.78 1.82 89.35 62.33 2.28 39.22 176912.5 AngloEst 506.00 - 683.10 505.38 0.59 -39.51 2.9 BGX 939.90 11.30 1301.62 808.80 2.03 -18.15 9033.7 SchroderRE 58.75 -0.50 63.00 56.10 4.22 7.19 416.8 Tech - Hardware
RylBkC C$X 68.02 1.15 81.53 66.51 4.60 9.97 2626.9 AscBrFdX 3010 8.00 3606 2705.75 1.13 42.18 988.6
Industrial Transportation BPX 342.45 1.95 499.25 252.55 7.86 -12.51 50643.6 Smart(J) 104.50 - 114.80 87.50 2.83 16.21 1.8 ARM Hldgs 964.00 15.00 1332.5 811.50 0.79 42.73 5676.3
RBSX 264.60 4.40 414.00 257.80 - -11.86 12048.7 Barr(AG) 512.00 -5.00 699.36 500.00 2.37 19.44 103.0 BBA Aviat 157.80 -1.10 257.11 156.80 4.70 13.09 2718.3 Cadogan 8.88 - 13.25 7.75 - -0.54 17.7 StModwen 383.00 3.40 499.40 375.50 1.20 3.61 241.6 Laird 329.20 3.80 413.30 302.90 3.80 16.02 369.6
StandChX 491.00 1.90 1166 475.55 10.44 11.48 9174.9 Britvic♦ 677.50 6.00 788.00 632.00 3.17 16.43 658.9 Braemar 437.50 5.00 513.86 410.00 5.94 20.83 16.8 CairnEng 129.50 0.90 210.00 127.10 - -2.12 1531.0 U and I 220.00 - 293.00 214.75 2.68 10.39 249.5 SpirentCM 67.75 1.00 98.75 64.25 3.64 75.03 170.7
..7.375%Pf 107.25 - 128.00 104.50 6.88 - 125.3 C&C € 3.54 - 4.07 3.16 3.07 -14.03 15.8 Clarkson 2180 28.00 2855 1860 2.75 44.94 28.2 Cape 233.50 5.50 275.75 190.00 6.00 12.85 149.1 UNITE Gp 611.00 7.00 706.00 484.65 1.83 4.93 272.8
..8.25%Pf 119.50 - 141.00 116.50 6.90 - 14.3 CarrsGroup 160.50 -0.25 178.50 136.00 2.17 12.41 26.5 Eurotunnl € 9.64 -0.06 14.57 9.60 1.72 51.67 1809.8 EnQuest 12.75 -0.75 61.00 12.75 - -1.12 3734.4 Urban&C 280.00 - 291.00 243.25 0.89 9.12 32.0 Tech - Software & Services
TntoDom C$X 50.50 1.12 56.48 47.75 4.03 11.79 3739.2 Coca-Cola H 1390 19.00 1638 1051 3.64 22.08 309.2 Fisher J 1097 7.00 1442 894.50 2.01 14.21 8.2 ExxonMb $X 76.76 -0.82 93.45 66.55 - - 11149.5 AVEVA♦ 1406 17.00 2350 1276 2.17 31.80 62.0
Flybe Grp 80.50 -0.75 108.00 52.00 - 26.83 128.0
Retailers Computcnt 822.50 4.00 885.00 665.00 2.41 8.95 37.3
VirginMoney 286.00 -3.70 472.90 285.00 - -715.00 1126.8 Cranswk♦ 1901 -11.00 1950 1280 1.79 22.47 166.0 GenelEgy 124.00 2.00 704.50 119.00 - -1.52 2015.4 AA 281.70 4.70 434.50 254.80 - -168.58 582.4
Westpc A$X 31.18 0.41 40.07 29.10 7.98 13.60 5324.3 Dairy Cr♦ 602.50 -2.00 700.00 437.90 3.60 43.56 230.9 Goldenpt 28.25 0.25 225.00 24.38 - -0.10 0.1 GeoPark $ 2.71 -0.03 5.73 2.45 - -1.56 0.6 DRS Data 12.00 - 14.90 11.25 - -5.06 8.5
OceanWil♦ 725.00 -2.50 1028.9 720.00 5.52 66.65 4.5 AO World 145.20 -1.80 240.00 118.60 - -62.91 286.1 Elecdata 63.75 - 74.90 62.00 3.14 21.21 3.2
Devro 285.25 - 328.00 256.17 3.09 50.96 50.0 GrnDnGas 217.50 - 412.25 210.20 - 17.67 0.0 AshleyL 25.75 0.25 36.00 24.50 7.77 10.02 243.4
Basic Resource (Ex Mining) RoyalMail 436.60 7.10 532.50 414.90 4.81 15.19 2565.5 MicroFoc♦ 1430 21.00 1622 1016.51 2.18 35.18 510.7
Glanbia € 17.35 0.19 19.59 13.53 0.58 34.74 23.6 GulfKeyst 12.75 0.25 61.56 11.50 - -0.60 1522.6 Brown N 283.30 -3.60 400.00 281.20 5.02 19.06 313.7
Ferrexpo 17.50 -1.50 83.00 12.50 23.98 1.80 523.4 UK Mail 265.00 4.00 569.00 245.25 8.23 17.56 5.9 NCC Grp 298.70 7.30 309.00 192.68 1.22 38.17 1918.3
Grncore♦ 350.30 -0.80 363.40 262.80 1.61 24.96 961.8 HellenPet € 3.77 0.21 5.65 3.35 - -17.16 106.8 Caffyns 575.00 15.00 665.00 480.00 3.52 1.67 1.2
Mondi 1213 16.00 1614.36 1061 2.45 15.72 1732.4
HiltonFd 534.50 -10.50 574.50 388.00 2.49 21.31 13.1 Hunting 255.50 5.25 677.00 235.50 7.73 -16.07 572.4 RM 162.00 - 185.00 137.50 2.47 10.19 9.7
Vale BRLX 9.37 0.48 27.89 8.80 24.78 -4.13 5867.4 Insurance Card Factor 334.80 6.40 401.50 250.72 2.03 19.49 321.5 Sage 567.00 12.00 625.50 363.39 2.20 31.50 2042.2
Kerry € 73.70 -0.09 77.72 60.09 0.73 26.98 40.9 Admiral 1695 54.00 1699 1370 2.73 16.15 1166.7 ImpOil C$X 40.33 0.64 55.37 39.30 1.19 20.06 515.9 Dairy Fm $ 6.20 0.05 9.77 5.76 3.34 19.97 106.2 SDL 430.00 1.00 472.00 315.00 0.58 40.84 27.4
Chemicals Nestle SFrX 71.25 1.20 77.00 64.85 2.98 16.35 5961.4 Amlin 666.00 0.50 668.50 445.70 4.05 14.52 1584.6 IE Hldgs 46.00 -7.50 149.46 46.00 - -2.02 421.1 Debenhm♦ 76.35 -0.20 96.80 63.75 4.45 10.03 2236.3
PremFds 38.50 0.25 47.79 30.75 - -1.51 964.0 JKX 25.25 0.25 39.40 11.76 - -0.67 4.7 TriadGp 26.75 -1.00 43.00 9.25 - 9.35 0.2
Bayer €X 102.50 1.45 146.45 99.60 2.10 23.80 2340.6 AvivaX 474.80 11.70 578.68 428.40 3.81 12.42 7222.6 Dignity 2259 3.00 2643 1764 0.89 -25.96 94.6
Carclo 140.25 -4.75 169.75 95.00 1.96 46.88 41.1 PureCircle 408.00 - 590.00 352.24 - 259.05 758.1 Beazley 366.60 2.50 402.08 273.80 2.57 12.76 584.9 Nostrum 327.20 -1.00 670.00 313.88 5.38 45.62 70.4 DixonsCar♦ 449.50 7.40 506.50 398.90 - 21.20 1702.8 Telecommunications
Croda 2888 19.00 3150 2569.9 2.27 22.49 244.7 REA 261.50 8.50 352.00 244.00 2.95 54.79 13.6 Chesnar 334.25 -8.75 367.81 310.00 5.50 13.11 69.0 OphirEgy 82.40 1.50 171.20 78.00 - -1.90 1900.5 Dunelm 857.50 -3.00 1023 817.00 2.39 18.14 71.7 BTX♦ 467.75 8.35 502.60 404.00 2.44 17.63 13476.0
Elemntis 203.60 0.60 324.10 203.00 2.60 8.85 487.2 SABMillX 4138 15.00 4151 2773 1.80 34.28 1741.1 Eccles prf 130.50 -1.50 146.00 124.50 6.61 - 38.7 PremOil# 19.00 -9.50 191.40 19.00 - -0.20 26551.9 Findel 192.25 -7.75 255.00 162.00 - -27.77 7.2 Inmarsat 1054 14.00 1153 812.62 3.06 22.96 1248.3
Syngent SFrX 367.90 -6.20 435.20 281.60 2.87 25.90 317.0 StckSpirit 118.00 - 232.25 97.75 1.50 17.66 268.0 Hansard 105.25 3.25 123.24 80.00 8.08 9.71 66.9 RylDShlAX 1365 26.50 2216.5 1326 9.20 82.51 10928.5 Halfords♦ 326.60 -2.40 563.51 310.80 4.47 9.80 2766.8 KCOM Gp♦ 114.00 -1.25 124.50 78.50 4.71 45.65 497.5
Synthomer 298.00 0.80 364.10 228.74 2.62 20.10 527.9 Tate&Lyl 590.50 2.00 682.50 492.20 4.74 61.28 1338.8 Hiscox 994.50 14.50 1063 722.00 2.37 12.21 255.6 ..B 1369.5 32.00 2315 1325.5 9.17 82.78 9725.4 Inchcape 721.00 14.00 906.65 673.50 2.79 19.41 704.4 TalkTalk 197.80 1.30 415.10 184.00 6.98 37.23 1336.6
Victrex 1514 12.00 2202.55 1490 3.00 15.46 192.8 TongtHu R 86.59 1.24 168.04 77.85 4.96 9.89 204.2 JardineL 854.00 -21.00 1112 840.50 3.38 16.69 93.3 Schlmbrg $X 63.58 0.57 95.13 61.71 2.77 25.90 6056.5 JDSportsF 1089 11.00 1149 439.86 0.65 25.08 349.6 TelePlus 874.00 -34.00 1227.25 725.50 4.58 21.30 320.5
Unilever 2934 91.00 3087 2450 2.81 24.45 3269.9 Lancashire 608.00 11.00 772.90 553.50 1.47 8.55 306.0 SEPLAT 58.13 0.50 166.00 56.22 16.80 5.88 3.9 Lookers 164.90 2.10 188.80 142.46 1.72 13.46 1525.1
Construction & Materials ..NV € 38.63 1.07 42.98 32.92 2.75 24.80 27.7 Soco Int 129.50 -2.50 314.50 117.00 7.52 -11.18 615.8 Marks&Sp 421.70 4.50 600.00 416.10 4.27 16.15 4152.8 Tobacco
Leg&Gen 244.50 5.50 296.02 230.40 4.60 14.24 11233.8
Alumasc 194.50 7.00 221.83 117.50 2.72 13.14 57.9 TrnCan C$X♦ 43.19 0.83 59.50 40.58 4.78 18.11 620.6 MossBros 96.00 -2.50 112.00 83.50 5.47 21.58 51.5 BrAmTobX 3647 35.00 3931.5 3231.5 4.06 16.93 2146.9
Health Care Equip & Services NovaeGp 808.50 2.00 914.39 588.50 3.07 10.60 205.7
Boot(H) 224.00 0.25 245.00 121.00 2.50 13.70 8.0 Tullow 128.00 1.80 456.90 122.00 3.30 -1.18 11400.6 Next■ 6685 40.00 8175 6520 2.24 15.75 540.9 ImpTobX 3559.5 -8.50 3665 2868.32 3.71 20.12 1737.2
Bioquell 140.00 -0.50 155.50 80.00 2.36 139.72 87.3 Old Mut 157.60 5.80 20590 149.90 5.52 10.95 8263.2
ClarkeT 90.00 0.50 91.00 58.60 3.44 - 39.6 Ocado 259.10 16.60 478.50 239.40 - 227.08 7157.6
ConstMed♦ 1004 -6.00 1155 820.50 1.80 99.82 7.0 PermTSB € 4.07 0.04 6.30 0.05 - -5.38 153.5 Pharmaceuticals & Biotech Travel & Leisure
CRH 1823 70.00 2478.5 1507 2.43 34.11 1782.9
PhoenixGrp 867.50 22.50 935.00 793.05 6.16 18.24 356.6 Photo-Me 151.25 1.25 166.75 131.50 3.23 21.76 672.9
GalfrdT 1423 16.00 1824 1195.63 4.22 12.83 188.3 GNStre kr 119.50 0.80 158.50 113.70 0.72 25.63 647.2 BTG 605.00 -1.50 818.50 504.00 - 50.83 581.4 888 Hldg 179.00 0.75 187.75 135.86 2.84 23.83 352.4
UDGHlthC♦ 547.00 -4.00 602.50 380.70 1.39 43.61 462.1 PrudntlX 1392.5 46.00 1761.5 1045.99 2.65 14.17 7208.9 CathayIn 11.50 -0.50 28.29 11.55 - -11.97 4.1 Saga 201.10 0.90 225.10 160.80 2.04 16.39 494.2 AirPrtnr 396.50 50.50 470.00 251.00 5.56 13.89 11.0
Keller 795.00 13.00 1105 770.50 3.17 25.10 69.7 SuperGroup 1527 27.00 1733.49 833.50 - 31.21 103.8
RSA Ins 407.80 8.80 528.00 390.50 0.49 62.82 3890.1 Dechra 999.00 11.00 1110 840.00 1.58 45.43 129.8 bwin.party 127.00 0.90 132.55 70.40 2.81 350.83 7212.6
KierGp 1219 -11.00 1779 1212 4.82 30.48 144.0 House, Leisure & Pers Goods TescoX 159.10 -2.45 252.52 137.00 0.73 -2.29 45052.6
SagicFin 60.00 - 68.00 53.00 4.40 4.80 1.8 Genus 1388 -4.00 1624 1210 1.32 21.39 30.6 Cineworld 486.90 7.10 599.00 404.11 2.77 16.31 348.6
Kingsp € 22.78 0.28 26.07 13.91 0.66 31.52 19.2
BarrttDev 579.00 12.50 673.50 420.80 2.06 12.99 2437.0 StJmsPl 925.00 25.50 1031 787.50 2.52 27.53 1479.3 GlaxoSmhX 1390 24.50 1645 1227.5 5.76 6.88 8526.5 CompassX 1164 21.00 1223.36 963.00 2.36 22.30 3139.8
LowBonr 63.00 - 76.00 49.00 4.29 16.22 97.9
Bellway 2653 50.00 2897.51 1709 2.30 11.50 303.1 Stan Life 364.60 4.90 505.68 353.20 5.01 26.92 2547.0
Support Services
Marshlls 301.90 -7.30 379.80 235.00 1.99 24.61 209.4 HikmaPhm 2006 15.00 2617 1849.38 0.70 25.97 361.2 Acal 267.50 -6.00 334.75 240.00 2.84 25.13 62.0 EntInns 95.25 0.25 139.60 93.55 - -7.34 538.0
Berkeley♦ 3572 142.00 3788 2264 5.04 11.85 618.2 Oxfd Bio 7.10 -0.35 13.38 5.39 - -18.16 1839.4 FirstGrp 99.20 0.75 129.90 88.65 - 17.92 2192.2
MorgSdl 730.00 -15.00 865.00 619.80 3.70 -21.36 10.4
BovisHme 886.00 12.00 1206 758.99 3.95 10.87 412.5
Media Aggreko 805.50 17.50 1724.15 788.00 3.37 10.66 687.3
Norcros 180.00 -4.00 227.60 150.00 3.11 12.68 23.9 4imprint 1196 -14.00 1351.85 830.50 1.72 27.43 6.9 RichterG $ 18.91 0.21 20.13 12.41 0.59 26.16 0.0 APR Engy 177.00 2.00 407.44 49.98 1.93 -0.30 33.6 Fuller A 1122 -8.00 1250 925.50 1.40 22.25 6.7
Cairn Homes € 1.20 0.01 1.23 1.00 - - 2168.4 ShireX 4223 -27.00 5870 3855 0.35 12.46 2083.4 Go-Ahead 2515 -3.00 2758 2269 3.40 21.04 36.7
StGobn €X 36.71 1.08 44.84 33.40 1.55 26.78 3005.2 Creston 123.00 - 163.00 108.00 3.41 15.98 13.6 AshtdGp♦ 968.00 18.00 1231 838.00 1.58 13.68 1372.6
CrestNic 516.00 8.50 598.50 342.00 2.77 11.55 368.9 VecturGp 173.00 1.40 200.10 140.00 - 107.05 241.8 GreeneKg♦ 857.00 4.00 985.00 766.00 3.35 21.10 513.1
Tyman 240.00 -9.00 342.00 230.00 3.33 34.81 210.9 DlyMailA♦ 657.00 -6.50 989.50 647.50 3.15 14.47 1028.4 AtknsWS 1491 17.00 1677 1225 2.45 15.32 104.3
GamesWk 540.50 -9.50 625.00 487.25 9.62 14.12 4.3 IrishCtl € 5.31 -0.05 5.60 3.20 1.82 15.86 3.8
HaynesPb 107.50 - 140.00 103.00 6.98 -2.02 6.0 Real Estate Babcock 949.50 17.00 1152.76 868.50 2.49 17.72 1246.9
Electronic & Electrical Equip Gleeson 590.00 15.00 594.64 345.02 1.29 25.66 50.9
Berendsen 1039 7.00 1161 946.50 2.89 20.41 365.4 Ladbrokes 116.70 0.60 147.00 92.85 7.63 -44.68 1918.5
Headlam 495.00 5.00 550.00 415.00 3.54 16.45 42.6 ITE Grp♦ 138.75 0.50 204.75 125.00 5.33 13.29 754.8 Harworth Gr 11.75 - 14.37 7.26 - 2.84 475.1
Dialight 416.00 -16.00 817.00 398.00 3.61 22.26 54.7 Brammer 146.00 6.75 420.50 136.50 7.33 20.38 1189.4 MandarO $ 1.38 0.06 1.78 1.27 4.49 19.37 26.8
McBride 155.75 3.75 176.00 74.00 - -405.60 174.7 ITV 262.80 5.30 281.90 218.90 1.79 20.08 11198.9
e2v Tech 216.75 -1.50 268.00 177.00 2.35 19.71 84.6
JohnstnP 40.00 4.38 174.00 35.00 - -83.51 75.4
REITs Bunzl 1772 12.00 1969 1665 2.00 25.96 591.1 Marstons♦ 152.40 -0.20 177.00 140.39 4.40 -32.27 1355.5
Halma♦ 812.00 14.50 886.50 663.50 1.47 28.81 468.6 McCarthy&S 287.00 11.50 291.50 180.00 - 24.06 470.3 Assura♦ 53.30 1.30 64.00 51.00 3.66 9.65 6694.3 Natl Exp 301.60 5.00 334.70 216.30 3.42 18.69 277.7
Persimn 1957 73.00 2156 1443 - 13.59 1350.1 News Corp A $ 12.31 -0.20 17.55 12.06 0.75 -72.95 2127.3 Capita 1159 23.00 1336 1069 2.52 31.42 823.6
MorganAd 214.40 2.80 375.84 206.10 5.08 37.09 260.5 BigYellw 731.50 3.00 847.00 599.00 2.97 8.70 235.2 Carillion 280.10 2.10 371.40 277.60 6.34 22.39 1453.8 PPHE Htl 640.00 -4.00 688.00 453.75 2.77 9.76 2.5
Philips € 22.88 0.24 28.00 20.48 - 37.47 4970.2 NewsCpB $ 12.65 -0.16 17.11 12.24 0.73 -75.01 306.1
OxfordIn 568.00 -4.00 1114 502.62 2.29 -66.31 80.5 BritLand♦ 715.00 3.00 891.50 712.00 3.90 5.21 4636.7 Comnsis 40.25 1.75 63.00 36.25 4.97 -5.53 549.6 Restaurt 505.00 -11.00 748.70 500.00 3.05 18.04 1117.6
PZCusns 277.70 10.30 376.90 262.00 2.82 22.33 430.5 Pearson 684.50 -7.50 1517.42 680.00 7.45 29.32 4046.8
Renishaw 1615 5.00 2672.9 1577 2.62 9.64 151.7 Cap&Reg 63.25 -1.50 71.50 50.95 1.50 3.85 258.6 ConnectGp♦ 155.50 0.25 175.00 135.00 6.11 17.25 100.7 Sportech 58.50 - 72.00 52.56 - -1.39 16.3
ReckittBX 6099 94.00 6450 5340 2.28 25.91 1104.5 Quarto 208.00 - 239.00 148.25 3.98 8.08 14.0
Spectris 1574 24.00 2420 1550 2.95 14.58 137.3 Countrywd 347.50 7.80 608.00 334.80 4.32 17.31 265.8 DCC 5060 55.00 6060 3424 1.67 32.96 297.5 Stagech 270.00 4.80 437.90 264.30 3.89 11.72 791.9
Redrow 425.10 4.40 504.50 258.60 0.94 9.58 429.5 RELX NV € 14.46 0.13 16.75 12.64 2.54 25.59 3275.3
TT Elect 152.75 0.25 164.00 107.25 3.60 -78.21 58.8 DrwntLdn 3258 40.00 3891 3109 1.22 4.51 233.2 DeLaRue 433.25 5.00 606.00 414.75 5.77 11.17 69.2 ThomasCook 108.50 3.00 162.20 97.65 - 70.14 3905.1
TaylorWm 184.80 5.00 207.40 124.60 0.84 14.55 11499.2 RELX PLCX 1165 21.00 1232 988.50 2.23 26.76 1875.7
XP Power 1485 10.00 1750 1376 4.18 14.76 1.8 Gt Portld 756.00 6.50 892.50 745.00 1.19 4.11 688.9 Diploma♦ 673.00 13.00 916.50 600.29 2.59 20.72 168.2 TUI 1236 65.00 1294.78 996.74 - 22.07 2257.8
TedBaker 2669 32.00 3650 2272 1.51 31.57 28.1 STV Grp 489.00 -16.00 520.00 338.00 1.64 14.94 114.0
Green Reit € 1.42 0.01 1.70 1.24 - - 37.4 Elctrcmp 221.80 -0.40 263.10 167.55 5.30 23.34 559.5 Whitbrd 3952 52.00 5475 3895.68 2.08 19.15 431.7
Financial General ThmReut C$X 51.49 1.14 55.92 46.96 3.52 15.08 335.0
Hammersn 569.50 1.00 708.00 565.00 3.58 6.58 2563.4
Industrial Engineering UTV Med 178.50 -1.75 204.00 137.00 4.06 31.91 41.0 EnergyAst 490.00 -7.50 640.00 405.00 - 16.75 6.4 Willim H 376.80 -3.20 432.10 312.10 3.24 18.82 6004.4
3i 431.40 5.30 571.50 425.40 1.88 6.89 1377.2 Hansteen 110.70 -0.90 128.95 107.20 4.52 5.46 1188.4
AberAsM♦ 228.30 4.70 509.64 222.50 8.21 10.48 4629.3 Bodycote 520.00 9.50 797.59 489.90 2.77 16.64 423.3 WPPX 1447 27.00 1616 1273 2.64 14.95 2633.1 Essentra 746.00 3.00 1069 731.00 2.45 26.70 324.1 Utilities
Castings 471.25 1.25 490.00 360.00 2.82 13.81 9.2 HIBERNIA 1.27 -0.04 1.45 1.06 - - 1680.2 Experian♦ 1152 30.00 1264 1017 2.28 25.41 2143.2
BrewDlph 276.00 -1.70 361.00 247.70 3.62 16.14 878.3 Mining Highcrft 975.00 -5.00 1090 820.00 3.69 17.87 0.4 Centrica 209.40 4.20 300.70 200.87 6.45 -21.07 12185.0
Canaccord 190.00 -20.00 440.00 200.00 5.18 -7.08 1.7 Fenner 118.25 -2.00 237.00 115.25 10.15 -21.83 1080.5 Grafton 673.50 7.50 868.00 615.00 1.60 17.45 407.4 DeeVally 1455 - 1484 1170 4.30 18.97 0.5
Goodwin 1650 -32.00 3040 1629 2.57 12.20 0.5 Acacia 162.40 1.20 318.90 154.00 1.69 45.33 683.9 INTU 290.20 2.20 376.50 287.40 4.72 15.17 2359.0 HarvyNah 81.13 1.38 107.00 74.00 4.39 11.77 10.5
CtyLonInv 311.50 -0.50 380.37 306.00 7.70 11.97 21.3 LandSecs 1081 13.00 1363 1067 2.97 4.10 2585.7 Drax 212.00 4.40 451.30 205.10 5.61 4.96 1704.5
Hill&Sm 741.00 -2.00 776.50 565.00 2.43 28.76 33.5 AngloAmer 238.80 6.15 1277.59 221.50 22.85 -0.69 18801.6 Hays 117.60 4.20 173.70 112.90 2.27 16.09 6390.2
CloseBrs 1264 -5.00 1857.39 1235 4.00 10.85 280.2 LondonMtrc 154.50 -0.70 173.20 151.20 4.53 6.26 3845.0 Natl GridX 944.90 18.90 968.57 806.40 4.54 16.47 7509.4
IMI 793.00 7.50 1454.55 763.00 4.74 12.25 584.4 AngloPacif♦ 55.75 1.75 106.43 49.00 15.16 -2.23 36.5 Homesve 406.00 -2.70 447.84 322.60 3.05 23.20 154.2
DBAG € 26.18 0.48 34.50 24.65 1.40 10.70 19.8 McKaySec 254.75 -0.25 279.75 223.28 3.42 4.44 11.0 Pennon 878.00 15.00 919.50 711.90 3.58 30.35 788.2
MelroseInd 276.50 2.20 314.78 242.70 3.01 43.26 4403.0 AnGoldA R 126.88 -3.92 149.99 71.59 - -26.69 2377.6 HowdenJny 492.50 8.60 538.50 406.80 1.71 20.97 701.6
Hargr Lans 1265 26.00 1533 928.60 1.79 38.25 810.5 UtdUtils♦ 920.50 15.00 1045 816.50 4.10 22.43 1180.8

AIM
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence PolarCap 409.25 -4.75 489.75 335.00 6.11 15.97 8.8 Industrial General ClontarfEn 0.25 - 1.00 0.13 - -5.21 7.5 Palace Cap 360.00 - 405.00 330.00 3.61 6.20 6.5 IQE 19.75 -0.25 27.00 15.78 - 81.95 829.9
Cohort 385.00 - 432.04 231.92 1.30 28.34 91.9 Share 28.00 - 40.75 25.00 2.21 297.87 21.1 Powerflte 82.75 3.75 100.98 49.00 1.28 26.64 56.2 Egdon Res 8.63 - 17.00 6.24 - -4.27 333.9 PnthrSec 377.50 10.00 402.00 300.00 3.18 16.67 6.6
ShoreCap 425.00 - 431.50 400.00 2.35 14.72 4.0 EuropaOil 2.50 -0.13 9.72 2.50 - -2.91 166.6 PSPI 46.00 - 50.00 23.50 - -9.59 4.3
Tech - Software & Services
RM2 36.00 - 73.00 34.00 - -3.63 88.6
Banks STM Group 54.50 -10.50 73.00 23.00 - 29.33 689.9 GETECH 30.00 - 65.00 21.75 7.40 5.45 7.1 SiriusRE €♦ 0.46 0.00 0.54 0.39 3.38 7.53 394.0 Blinkx 23.63 1.38 40.50 14.75 - -1.63 1372.5
Caribbean I 8.00 - 11.00 3.25 - -0.72 - WH Ireland 89.00 -1.00 130.00 80.75 2.25 34.24 43.5 Insurance Infrastrata 1.38 0.20 5.10 1.01 - -0.28 1182.8 SumGermny € 0.97 - 1.00 0.74 2.97 17.46 15.4 BondInt 95.50 4.00 148.25 84.00 2.30 17.78 17.7
STB 3150 - 3425 2701 2.16 22.89 1.8 Gable 14.00 -0.50 57.00 12.00 - -2.03 171.2 Iofina 9.00 0.17 43.50 8.10 - -3.10 426.3 TaliesinPr 2510 32.50 2545 2172.5 - 9.09 3.2 Brady 55.75 -2.75 110.13 33.60 3.32 -43.79 307.2
Food & Beverages Helios 193.50 - 210.00 120.00 0.78 25.13 1.0 Ithaca Engy 17.00 -0.25 76.25 16.50 - 11.95 1837.9 Datatec 215.00 -2.50 370.00 204.47 2.42 10.11 16.2
Basic Resource (Ex Mining) FinsbryFd 113.50 - 118.50 62.00 1.39 20.30 91.1 Retailers DDD 1.75 - 4.50 1.25 - -1.81 0.6
KBC Adv 183.75 - 184.00 77.00 0.54 46.59 258.3
CropperJ 642.50 -2.50 718.00 390.00 1.32 29.58 8.5 Nichols 1183 18.00 1496.81 1000.00 1.89 20.49 18.9 Media ASOS 2992 77.00 4259 2443 - 67.39 449.4 Eckoh 46.00 -1.00 56.00 35.89 0.80 67.45 97.9
PetrelRes 2.75 - 4.88 2.00 - -1.34 1.0
RealGdFd 43.50 - 59.40 31.00 - 31.50 11.1 Avesco 227.50 4.00 254.00 113.00 2.64 15.85 42.4 Koovs 15.88 1.75 150.00 10.66 - -0.53 1411.3 EgSoltns 53.50 2.00 79.00 48.00 - -37.13 10.0
Chemicals Cello Gp 85.00 1.00 106.70 79.00 3.06 79.37 17.8
Petroceltic 9.97 -1.03 140.00 8.37 - -0.13 482.6
Wynnstay 537.50 7.50 610.00 474.52 1.90 15.14 7.4 PetroNeft 2.38 0.03 5.00 1.86 - -3.49 304.0 StanlGib 65.00 4.63 305.00 56.45 7.69 -29.12 197.6 Iomart 230.50 5.50 310.00 162.00 1.08 26.97 885.7
Scapa 184.50 1.50 225.25 124.08 0.81 37.23 216.5 M&Csaatc 305.00 3.00 395.00 280.25 2.06 -41.75 184.7
Plexus 124.00 8.00 245.00 116.00 0.91 20.12 31.8 K3BusTc 345.00 -2.50 377.00 206.98 0.36 32.29 10.9
Health Care Equip & Services MissionMk 40.75 - 50.00 38.14 2.45 9.04 10.0 Support Services
Construction & Materials Rockhop 29.00 0.25 83.00 24.00 - -5.67 3040.3 mporium 9.13 0.13 11.25 3.62 - -1.20 1261.6
Advnc Med 174.75 3.50 187.29 120.00 0.40 27.28 79.1 Next15Cm 224.00 - 278.25 147.00 1.23 144.89 19.8 AndSyks 330.00 -2.50 355.00 270.00 7.21 14.18 3.0 OMG 42.00 - 51.56 34.48 1.19 40.00 14.2
Abbey 1267 7.00 1300 833.35 0.68 7.69 0.3 Sound Oil 16.50 0.75 26.73 8.75 - -10.47 1305.1
AVO 6.13 - 16.90 3.75 - -7.75 436.5 YouGov 148.00 -0.50 156.00 101.50 0.54 47.99 2.9 Augean 50.25 0.25 62.00 37.65 1.00 10.14 60.0 Progility 1.18 - 7.50 1.05 - 4.82 0.1
AccsysTch 63.00 -1.50 81.50 56.00 - -40.31 103.8 TowerRes 0.08 -0.01 0.66 0.07 - -0.34 368416.0
CareTech 233.00 1.50 262.15 190.00 3.43 10.99 10.5 Begbies 44.75 -0.13 51.08 38.50 4.92 -35.52 25.2 Pub Tech 128.00 - 208.00 114.00 - -3.94 20.0
Aukett 6.63 - 8.50 5.50 3.17 8.69 7.5 Mining UnJackOil 0.12 -0.01 0.30 0.11 - -4.42 3186.3
CircleHldgs 25.50 -5.00 57.00 25.00 - -7.42 40.0 Christie 135.00 3.00 161.50 118.00 1.67 11.78 12.3 SciSys 69.50 - 95.51 38.50 2.32 -60.70 2.0
Amara 7.38 -0.08 19.50 6.80 - -4.36 267.3 VictorOil 28.75 -0.75 89.05 28.50 - -0.91 202.1
Electronic & Electrical Equip ImmunDiag 227.50 - 340.00 216.40 1.32 52.24 1.3 Empres 84.50 4.00 106.90 39.13 0.83 10.19 203.5 WANdisco 77.50 -2.00 485.00 69.75 - -0.85 0.7
CeresPow 6.15 0.05 10.08 4.20 - -4.61 1803.8 SphereMed 8.75 - 23.50 7.50 - -1.11 7.1 AMC 6.01 0.21 44.58 5.50 - 5.99 1286.9 Pharmaceuticals & Biotech Hargreaves 251.00 10.50 608.00 236.00 10.64 3.91 22.9
ElektronT 6.63 - 8.70 4.00 - 10.01 1.7 Tristel 122.50 4.00 152.00 67.10 1.51 23.40 180.3 BotswanaD 0.85 - 2.50 0.63 - -5.18 358.0
Abcam 615.50 7.00 674.00 420.00 1.29 33.14 408.6 Impellam 820.00 10.00 859.60 561.00 0.76 13.39 0.8 Telecommunications
FlowGp 15.13 0.25 44.95 9.75 - -3.14 566.9 CentAsiaM 127.00 2.00 198.00 118.21 9.76 13.06 731.6 ISG 150.00 - 355.00 119.50 3.27 -4.52 156.2 AltNetwks♦ 488.00 -1.00 545.00 405.00 3.09 20.92 7.2
House, Leisure & Pers Goods AllcePharm 49.50 1.25 63.00 33.25 2.02 15.86 1132.5
LPA 89.00 - 99.00 58.00 1.74 78.62 10.4 Connema 1.30 - 2.80 0.25 - -3.69 5.0 JhnsnSrv 86.50 0.50 95.41 66.00 1.97 59.00 21.9 Peoples Op 82.50 - 147.60 80.00 - -36.42 0.1
Airea 17.50 0.25 23.00 12.75 3.43 13.52 120.0 Epistem 117.50 - 339.00 110.00 - -3.90 2.5
ThorpeFW 214.88 0.75 250.70 131.00 1.54 21.25 29.5 C'royG&NR 31.00 - 34.50 0.28 - -5.55 1.0 JourneyGp 188.00 - 208.72 120.00 1.58 14.93 0.3
Churchll 732.50 -2.50 860.00 502.00 2.20 22.73 1.7 e-Thera 27.13 - 49.40 20.25 - -8.77 114.2 Travel & Leisure
Zytronic 375.00 30.00 440.00 252.00 2.75 15.42 66.1 GrekaDrill 3.80 - 12.00 2.50 - -3.66 120.3 LonSec 2075 -25.00 2400 1800 2.99 21.69 0.3
gamingrealm 22.25 0.25 36.89 20.00 - -4.76 108.5 GW Phrms 325.00 26.00 708.55 296.75 - -17.97 770.6 32Red PLC 144.00 9.00 150.35 40.40 1.67 52.14 270.2
Herencia 0.06 - 0.30 0.04 - -0.63 372.8 Matchtech 530.00 9.75 587.80 483.85 3.82 17.92 2.0
HtchChMd 2652.5 -17.50 2896.6 1140.15 - 153.50 34.1
Financial General Mulberry 950.00 -9.75 1000.00 800.50 - -653.37 3.0 HighldGld 57.00 -0.75 61.25 34.00 7.97 -9.42 212.0 NewmkSec 2.78 - 4.93 1.96 2.70 6.50 51.1 CastleStIn# 32.50 -1.00 41.25 17.00 - 5.80 108.9
Portmern 1012.5 30.00 1024 860.20 2.62 16.57 8.3 ImmuPhar 25.25 - 65.00 19.10 - -8.50 29.7 Celtic 73.50 - 79.00 70.75 - -17.28 6.0
Ambrian 5.00 - 12.05 4.50 - -1.30 20.4 KarelianDd 0.85 - 1.85 0.80 - -28.33 180.0 NWF 200.00 1.50 206.75 123.50 2.55 15.70 38.8
SIR 270.00 -5.00 315.00 235.40 - 19.55 7.7 ReNeuron 3.00 -0.10 6.50 2.26 - -6.24 661.8 ..6%CvPf 65.00 - 80.00 35.00 4.98 - 0.7
Arbuthnot 1452 -14.00 1650 1320 1.86 19.94 21.6 OracleC 2.10 -0.03 3.20 0.70 - -13.46 2947.9 Paysafe 397.75 4.75 416.75 326.17 - 60.84 2612.7
TelfordHms 372.50 -3.00 495.00 345.00 2.98 7.76 275.2 Sareum 0.23 -0.01 0.65 0.17 - -3.46 1314.3 ..Cv Pf 135.00 - 150.00 120.00 - - 0.8
Aurora 11.25 - 11.78 8.00 - -0.81 14.9 ShantaGold 6.13 0.50 11.45 4.00 - -12.63 4876.4 PennaCns 307.50 15.00 340.00 28.30 1.14 17.87 24.7
WalkerGb 202.50 -2.00 244.85 178.00 1.14 22.52 172.0 SinclairIS 39.13 -0.13 61.33 31.50 - -26.08 330.9 Dalata 382.50 - 410.00 111.15 - 206.20 0.8
BP Marsh 145.00 0.50 159.00 131.00 1.90 6.44 10.1 SierraRut 17.25 -0.25 32.00 15.38 - -14.86 32.6 Petards 12.63 - 14.65 10.00 - 10.04 17.1
Vernalis 58.50 1.88 88.29 44.45 - -87.97 1122.3 Dart♦ 559.50 6.50 599.00 267.50 0.54 8.85 336.3
BrooksMac 1720 -30.00 2075 1320 1.69 25.24 10.3 Industrial Engineering Sirius Min 12.75 -0.25 29.50 6.40 - -37.72 6015.4 RedhallGp 6.13 - 15.50 5.00 - -0.98 9.6
Camellia 9149.5 100.00 9992 8401 1.38 310.46 0.6 Stratex 1.28 -0.03 2.50 1.00 - -2.64 193.4 Real Estate Renew 387.50 -2.50 407.78 237.00 1.48 18.40 67.1 GoalsSocc 132.00 - 242.00 127.00 1.52 9.25 235.4
600 Grp 13.00 - 20.00 11.35 - 9.37 12.9 MinoanGp 7.13 0.63 13.50 6.00 - -11.29 436.0
Fairpoint 145.00 6.50 195.00 105.66 4.41 20.86 145.9 ZincOx 0.53 -0.03 18.00 0.50 - -0.04 317.2 Conygar♦ 169.00 - 195.00 163.50 1.04 21.90 5.1 Restore 286.50 1.50 316.00 232.00 0.84 52.31 143.7
Molins 80.50 - 96.80 66.10 6.83 -19.63 15.8 PeelHtls 94.50 -1.00 110.00 82.50 1.59 18.63 0.5
Leeds 37.00 - 42.00 30.00 - 9.76 50.0 FltchKng 46.00 -1.00 63.90 41.11 4.89 3.95 7.5 SafeCharge 246.00 - 297.00 235.01 2.17 26.80 79.0
MattioliWds 635.00 - 653.00 470.00 1.47 32.40 3.1
MS Intl 204.00 -1.00 227.50 116.00 3.92 24.88 3.5 Oil & Gas
Pres Tech 162.00 -1.50 395.00 140.00 5.19 33.66 20.8 InlandHms♦ 81.75 1.38 89.00 54.00 0.73 5.94 861.5 Servoca 26.25 0.13 34.75 18.50 - 15.12 40.0 Utilities
Miton 26.75 0.25 31.00 19.00 2.24 9.29 64.7 AmeriRes 19.75 1.00 40.54 18.66 - -30.53 903.8
TP Group 2.13 - 6.75 1.76 - -2.01 50.0 Lok'nStor 325.00 -5.00 374.00 235.00 2.26 42.53 5.2 Utilityws 155.75 -8.50 288.25 115.00 2.89 10.70 213.1 ModernWtr 7.75 - 20.50 7.00 - -0.35 2.7
Numis♦ 211.25 1.75 278.00 196.09 5.21 11.53 147.1 AndesEnrg 17.75 -0.25 38.75 16.50 - -13.08 10.3
LXB Retail 96.00 -0.25 149.00 77.00 - - 496.6 SeaEnergy 3.50 -1.00 30.40 3.04 - -0.37 37.1
Park Grp 69.25 -0.75 97.97 52.00 3.47 13.77 141.3 BahamasP 1.73 -0.01 3.25 0.92 - -7.37 526.3
NewRiver♦ 339.50 -1.00 362.00 287.75 5.08 9.02 489.6
Tech - Hardware
BorSthnPet 1.93 - 7.18 1.25 - -3.89 13.7 AminoTech 116.00 -1.00 171.00 103.00 4.31 10.33 62.6

Investment Companies
Conventional (Ex Private Equity) 52 Week Dis(-) Edin WWd 424.25 -2.00 502.44 400.50 0.35 444.8 -4.6 JPMGIConv 87.50 -0.50 106.00 87.50 6.43 95.1 -8.0 ScotAmer 239.50 3.00 276.50 230.44 4.41 235.9 1.5 Albion Ent 91.50 - 91.90 85.50 5.46 101.4 -9.8 TerraCat 106.00 - 110.89 91.00 - - -
Price +/-Chg High Low Yld NAV or Pm EP Global 216.50 -1.00 262.10 212.05 1.52 229.1 -5.5 JPM GEI♦ 77.25 2.25 124.67 74.51 6.34 84.1 -8.1 Scottish In♦■ 567.00 11.00 670.00 551.00 2.15 647.0 -12.4 AlbionTech♦ 73.25 - 78.49 72.00 6.83 78.1 -6.2
3i Infra 170.70 - 189.56 163.40 4.56 - - Estabmt 159.00 -2.00 187.00 138.00 3.08 196.4 -19.0 JPM I&C Uni♦ 337.00 - 370.00 333.00 - 332.0 1.5 ScottMort 245.50 3.10 283.40 226.20 1.19 248.2 -1.1 AlbionVCT 66.50 - 67.90 63.00 7.52 69.0 -3.6 ISDX
AbnAsianIn 147.50 2.50 207.75 141.00 5.56 162.8 -9.4 Euro Ast♦ 1042.5 5.00 1160 967.00 5.06 1051.5 -0.9 JPM Inc&Gr 103.25 -0.13 115.85 101.81 4.36 103.4 -0.1 ScottOrtll♦ 689.00 5.50 898.50 660.00 1.67 825.9 -16.6 ArtemisVCT♦■ 59.00 -0.50 74.00 57.00 6.78 61.6 -4.2
EuroInvT♦■ 643.00 -7.25 849.00 640.00 2.18 714.6 -10.0 JPM Ind 474.50 4.75 605.50 443.00 - 546.8 -13.2 SecTstScot 123.50 1.25 148.00 120.50 4.21 134.0 -7.8 ..VCT 2 96.50 - 99.00 91.00 6.74 98.3 -1.8 52 Week Vol
AbnAsian 720.00 15.00 953.50 653.77 1.39 834.2 -13.7
F&C Cp&I 242.25 1.50 277.00 240.75 4.13 243.5 -0.5 JPM JpSm 257.38 1.75 278.00 210.00 - 289.0 -10.9 Seneca I&G 142.13 - 150.00 134.01 4.04 139.1 2.2 ..VCT 3 100.75 - 103.49 94.00 7.44 103.0 -2.2 Price +/-Chg High Low Yld P/E 000s
AbnJapInv 436.50 1.50 571.00 430.00 0.60 490.9 -11.1
F&CGblSmlr♦ 924.00 -4.00 1028.92 875.00 1.04 927.8 -0.4 JPM Jap 270.00 - 307.95 233.50 1.04 303.5 -11.0 Shires Inc♦ 197.75 2.63 261.00 189.34 6.19 220.1 -10.2 ..VCT 4 94.00 - 95.19 88.25 3.19 95.4 -1.5 ArsenalFC 1567000 - 1567000 1550000 - 48.64 0.0
AbnLatAmIn♦ 43.63 0.13 73.00 41.25 9.74 48.9 -10.8
F&CMgdG 146.00 - 158.00 139.00 - 142.2 2.7 JPM Mid 981.00 2.00 1100 777.00 2.09 995.1 -1.4 StdLf Eqt 430.00 3.50 471.46 396.50 3.35 428.5 0.4 ..VCT 5 81.25 - 82.49 72.00 4.92 84.1 -3.4 ShephdNm 1170 - 1185 1150 2.23 24.00 0.1
AbnNewDn♦ 140.00 2.00 205.23 134.29 2.71 160.0 -12.5
F&CMgdI 113.00 -0.25 130.00 112.10 4.38 110.7 2.1 JPM O'seas 188.50 1.50 231.80 186.00 1.59 - - StdLf Sml 342.00 6.00 386.00 274.00 1.35 355.2 -3.7 BSC VCT 86.00 - 91.00 82.00 6.40 98.4 -12.6 Thwaites 117.50 - 120.00 115.50 3.80 7.08 9.8
AbnNewThai 360.00 5.00 489.88 324.00 2.28 435.1 -17.3
AbnSmlCo♦ 204.00 -1.50 229.00 179.52 3.19 232.3 -12.2 FidAsian 231.00 3.00 285.50 195.50 0.48 265.7 -13.1 JPMRussian 272.00 -1.50 391.00 259.50 4.78 333.3 -18.4 StrategicEq 190.63 -2.38 241.50 175.75 0.41 199.5 -4.4 ..VCT2 56.00 - 59.00 51.98 8.04 61.3 -8.6
Abn UK 283.00 6.00 334.75 277.00 3.60 296.9 -4.7 FidChiSpS 124.00 3.30 179.78 105.06 1.05 153.9 -19.4 JPMSnrSec 83.63 0.75 101.05 82.50 7.35 87.0 -3.9 Temp Bar 985.00 10.50 1235.01 970.00 4.75 1041.8 -5.5 Crown Place 28.50 - 30.50 27.75 8.77 31.7 -10.1
Abf Gd Inc 187.00 -1.00 212.00 162.70 3.93 205.1 -8.8 Fid Euro 163.10 2.60 187.50 158.70 1.90 175.3 -7.0 JPM Smlr 860.00 - 929.20 603.55 1.12 986.0 -12.8 TempEmerg 386.10 7.30 607.78 370.00 2.14 444.2 -13.1 FrsightSol 102.50 - 106.00 96.00 5.85 110.2 -7.0 Guide to FT Share Service
Abf Sml 1083 3.00 1235 1015 2.29 1184.3 -8.6 Fid Jap 81.25 -0.25 88.50 72.76 - 92.9 -12.5 JPM US Sml 162.00 3.50 193.75 155.25 - 173.5 -6.6 TRIG 100.30 0.20 109.00 93.80 6.06 - - Inc&GthVCT♦ 94.00 -0.50 105.00 88.25 10.64 97.4 -3.5
AcenciADbt $ 1.35 0.02 1.80 1.31 4.22 1.6 -15.6 Fid Spec 186.75 4.75 217.00 166.00 2.30 - - JupUSSmCo 547.00 7.50 704.03 530.68 - 654.8 -16.5 ThreadUKSel 166.00 - 180.00 156.00 2.62 177.1 -6.3 KingsAYVCT 18.25 - 19.00 17.25 5.48 20.0 -8.8
AdvDvpMk 375.00 8.75 483.00 350.00 - 429.5 -12.7 FinsG&I 553.50 9.50 609.36 522.00 2.11 556.7 -0.6 KeystoneInv 1705 26.00 1900 1679 2.96 1798.8 -5.2 TREurGth 602.50 4.50 661.00 515.75 1.08 664.1 -9.3 Maven I&G 66.25 -0.50 75.00 59.50 8.91 62.7 5.7
Alliance 485.00 7.20 531.50 437.00 2.04 536.6 -9.6 FstPacfic H HK$ 4.84 0.14 8.10 4.56 3.93 - - Law Deb 444.25 1.25 545.50 440.00 3.53 430.7 3.1 TroyInc&G♦ 69.00 1.00 74.71 64.43 3.33 68.3 1.0 MavenVCT2 48.75 - 64.00 45.00 8.21 50.3 -3.1 For queries about the FT Share Service pages e-mail
AllianzTech 585.50 5.25 650.00 507.00 - 634.5 -7.7 For & Col♦ 416.00 3.90 467.90 395.60 2.26 458.6 -9.3 LinTrain £ 524.00 -3.50 585.00 382.01 1.23 417.4 25.5 UtilicoEmg 160.75 - 173.75 119.11 3.79 184.9 -13.1 MavenVCT4 85.00 -0.50 86.00 80.00 5.88 96.3 -11.7 ft.reader.enquiries@morningstar.com.
AltAstsOps 41.75 - 46.81 37.50 - 51.0 -18.1 Geiger 10.88 - 24.50 10.00 - 14.6 -25.5 Ln&StLaw 324.75 -2.75 384.00 322.50 4.37 349.5 -7.1 UtilEmSubs 11.63 0.88 14.00 7.01 - - - MavenVCT5 34.50 -0.25 37.00 32.00 7.25 39.3 -12.2 All data is as of close of the previous business day. Company classifications
Art Alpha♦ 231.88 1.88 289.65 230.00 1.53 302.9 -23.4 GenEmer 425.00 6.80 575.00 391.70 - 486.0 -12.6 Lowland♦ 1176 28.00 1440 1148 3.32 1231.1 -4.5 UIL Inv 100.75 1.25 126.00 96.00 7.44 151.1 -33.3 Nthn 2 VCT♦ 71.00 - 88.00 67.25 7.75 77.2 -8.0 are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE
..Sub 14.25 - 32.00 13.00 8.42 - - GFIS 14.00 - 20.89 12.00 - 40.9 -65.8 M&GHighInc 150.00 1.50 179.95 144.00 3.07 162.6 -7.7 ValAndInc 230.50 -0.50 264.75 228.25 3.90 300.6 -23.3 Nthn 3 VCT♦ 93.75 - 104.00 86.50 5.87 100.1 -6.3 100 constituent stocks are shown in bold.
AsianToRt 188.75 1.75 224.00 163.25 1.72 208.7 -9.6 GRIT 4.25 0.50 25.11 2.50 - - - Majedie♦ 256.00 -0.75 283.00 230.75 2.93 256.2 -0.1 Witan 738.50 10.00 850.00 676.78 2.12 750.1 -1.5 NthnVent 76.00 - 85.36 74.00 7.89 81.5 -6.7 Closing prices are shown in pence unless otherwise indicated. Highs & lows
Aurora 154.25 - 162.23 144.00 2.50 156.3 -1.3 GoldenPros 18.88 - 34.00 17.00 - 20.6 -8.3 Man&Lon 239.75 -0.75 259.28 225.00 1.45 296.1 -19.0 WitanPac 222.25 0.25 274.75 203.03 2.05 257.9 -13.8 ProVenGI 75.50 - 81.25 73.00 5.96 79.4 -4.9 are based on intra-day trading over a rolling 52 week period. Price/earnings
Axiom 101.50 - 103.00 100.00 - - - Hansa 740.00 -32.00 917.00 740.00 2.16 1061.8 -30.3 MCGlobPort♦ 172.00 2.25 195.00 155.00 2.38 172.3 -0.2 WorldTst 244.00 - 285.25 231.00 1.42 277.6 -12.1 ProVenVCT 92.00 - 97.89 89.50 5.43 97.5 -5.6 ratios (PER) are based on latest annual reports and accounts and are updated
BG Japan 433.25 7.75 493.25 385.00 - 425.4 1.8 ..A 755.00 -3.00 930.00 747.25 - 1061.8 -28.9 MCurPac 251.00 6.25 336.00 236.73 2.99 294.2 -14.7 WwideHlth 1772 44.00 2108.5 1590.25 0.71 1899.4 -6.7 UnicornAIM 142.00 -2.00 145.00 122.00 4.23 177.2 -19.9 with interim figures. PER is calculated using the company’s diluted earnings
BG Shin 427.00 -1.25 469.00 311.75 - 419.5 1.8 Hend Alt 211.00 -1.50 241.75 210.53 1.42 267.9 -21.2 MercantIT♦ 1669 6.00 1845 1450.21 2.58 1841.9 -9.4 from continuing operations. Yields are based on closing price and on dividends
Conventional - Private Equity 52 Week Dis(-) Ordinary Income Shares 52 Week HR
BSRT 13.50 0.50 34.00 13.00 - 33.1 -59.2 Hen Div 87.00 -0.50 95.50 86.50 5.86 86.9 0.1 MrchTst 399.50 4.25 500.00 394.00 5.98 419.8 -4.8 paid in the last financial year and updated with interim figures. Yields are
Price +/-Chg High Low Yld NAV or Pm Price +/-Chg High Low Yld WO GRY 0%
Bankers 588.50 8.50 674.50 548.00 2.57 594.2 -1.0 HenEuroF♦ 950.00 -7.50 1148.5 925.91 2.57 970.8 -2.1 Mid Wynd 330.25 2.75 352.50 305.00 1.17 325.4 1.5 shown in net terms; dividends on UK companies are net of 10% tax, non-UK
HenEuro 848.00 15.50 957.00 779.50 2.12 850.8 -0.3 Miton Globa 157.50 - 164.65 155.45 - 176.3 -10.7 AbnPvtEq 88.00 - 92.25 82.00 2.54 133.1 -33.9 JPM I&C♦ 83.75 0.25 106.00 82.00 7.94 -16.1 -5.4
BrngEmEu♦ 412.50 2.00 607.70 410.00 4.61 473.1 -12.8 companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect
HenFarEs 261.75 2.00 362.00 238.25 7.07 273.5 -4.3 MitonUKMic 54.25 - 57.65 50.00 - - - Altamir € 10.02 0.02 11.82 9.60 4.59 17.1 -41.4 JupiterDv&G 3.50 0.05 5.40 3.00 21.14 11.7 -46.4
BH Global 1265 5.00 1343.6 1235 - 1345.0 -5.9 capital changes where appropriate.
HendGlob 342.25 -1.25 416.81 334.86 2.92 397.9 -14.0 MMP 2.63 - 4.19 2.50 - - - Dun Ent 300.75 - 378.00 296.59 1.56 510.5 -41.1 M&GHI&Gt 45.25 0.25 65.50 42.50 - -18.9 -6.9
..USD $ 12.43 -0.10 13.35 12.21 - 13.2 -5.8 Trading volumes are end of day aggregated totals, rounded to the nearest
HenHigh♦ 166.75 - 195.25 165.90 5.22 165.9 0.5 Monks♦ 399.00 6.50 458.90 371.50 0.99 438.9 -9.1 Electra 3650 20.00 3757 2996 1.04 3959.9 -7.8 Rghts&Icp 4885 35.00 4950 3850 - -93.8 -14.7
BH Macro 2005 -5.00 2191 1990 - 2111.0 -5.0 1,000 shares.
HenInt Inc 113.25 1.75 137.69 106.92 3.93 117.8 -3.9 MontanSm 540.50 -0.25 590.00 446.34 1.39 589.6 -8.3 ElectraPrf 151.75 - 152.75 147.43 - 149.7 1.4
..EUR € 19.16 0.01 21.10 19.01 - 20.5 -6.5 Income Shares 52 Week HR
Hen Opp 775.00 2.25 1059.1 756.00 1.61 893.8 -13.3 Mur Inc 629.00 8.00 793.58 620.45 4.97 679.0 -7.4 F&C PvtEq 233.50 - 244.50 214.00 4.64 297.3 -21.5 Net asset value per share (NAV) and split analytics are provided only as a
..USD $ 19.23 -0.04 21.10 19.05 - 20.3 -5.3 Price +/-Chg High Low Yld WO GRY 0%
HenSmlr 629.00 6.00 703.00 553.50 1.83 677.2 -7.1 Mur Int♦ 771.00 15.00 1070 752.00 5.84 804.2 -4.1 GraphEnt 542.00 -13.50 615.94 540.00 1.85 721.6 -24.9 guide. Discounts and premiums are calculated using the latest cum fair net
BiotechGth 641.00 18.00 898.92 582.73 - 685.9 -6.5 JPM In&Gr 97.00 0.50 100.50 92.50 4.64 -80.8 7.2
Herald 690.00 - 750.00 650.12 - 847.3 -18.6 ..B 725.00 - 1144.44 627.00 - 804.4 -9.9 HVPE 872.00 3.00 912.00 807.80 - 1192.2 -26.9 asset value estimate and closing price. Discounts, premiums, gross redemption
BlckRCom♦ 47.88 0.88 94.14 45.03 12.56 48.8 -1.9 M&GHghIc 45.25 0.25 63.00 42.50 - -18.7 -3.3
HICL Infra 151.50 0.60 161.40 149.90 4.85 139.9 8.3 NB DDIF $ 1.07 - 1.21 1.00 - - - HgCapital 1065 1.50 1169 1050 3.00 1321.6 -19.4 yield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)
BlckREmEur 181.13 -0.63 240.00 164.58 - 205.7 -11.9 Rghts&I 1235 - 1350 925.00 2.91 - 38.0
Impax Env. 148.00 -1.00 167.75 139.00 0.95 167.3 -11.5 NewCtyEgy 10.88 - 21.50 8.32 - 15.3 -28.9 JPM Pvt Eq $ 0.95 - 1.07 0.85 - 1.2 -20.8 are displayed as a percentage, NAV and terminal asset value per share (TAV)
BlckRFrnt 97.50 -0.75 118.50 95.25 4.24 104.2 -6.4
Ind IT 396.00 2.00 410.00 280.00 1.26 385.6 2.7 NewCityHY 53.75 0.25 65.11 52.00 8.02 55.6 -3.3 JZ Capital 389.50 - 480.00 376.00 - 666.0 -41.5 Capital Shares 52 Week HR in pence.
BlckRGtEur 239.50 3.00 264.50 224.00 2.03 252.0 -5.0
IntBiotech 450.00 7.50 620.00 411.53 - 514.9 -12.6 NewIndia 294.25 -0.50 371.30 263.00 - 337.9 -12.9 Mithras 146.50 - 151.91 126.50 0.68 176.3 -16.9 Price +/-Chg High Low SP WO TAV 0%
..Sub 8.30 0.30 25.63 7.00 - - -
Intl PP 139.20 0.10 141.80 130.00 4.53 128.1 8.7 New Star IT 72.50 - 78.00 65.45 - 110.3 -34.3 NB PE Ptnr $ 10.20 0.13 12.20 10.00 - - - JPM Inc&Gr 6.00 0.25 15.19 4.75 8.9 3.5 - X FT Global 500 company
BlckR I&G 174.50 0.25 193.00 172.00 3.38 175.7 -0.7
InvAsTr 168.00 1.00 213.58 147.00 2.17 191.4 -12.2 NorthAmer 789.00 5.00 906.45 729.50 3.87 896.9 -12.0 Nthn Invs 567.50 - 695.00 460.00 3.00 567.3 0.0 M&GHghIc 1.15 -0.13 5.30 1.15 20.0 19.5 - ♦ trading ex-dividend
BlckRIncStr♦ 126.00 2.00 141.00 123.90 5.35 125.2 0.6
Inv Inc 260.25 1.75 305.00 258.00 3.90 284.4 -8.5 NthAtSml 2295 -1.00 2310 1825 - 2752.6 -16.6 Pantheon 1259 -1.00 1395 1220 - 1719.0 -26.8 ■ trading ex-capital distribution
BlckRckLat 252.75 0.13 413.13 245.91 7.63 291.8 -13.4 Zero Dividend Preference Shares 52 Week HR
InvPerp♦ 69.13 -0.25 79.00 68.40 7.23 66.8 3.5 Oryx Int 650.00 - 660.00 400.00 - 672.1 -3.3 PantheonR 1190 - 1300 1180 - 1718.9 -30.8 # price at time of suspension from trading
BlckRckNrAm 109.50 1.50 124.50 101.00 3.84 122.2 -10.4 Price +/-Chg High Low SP WO TAV 0%
IPST BalR 112.50 -2.00 123.00 112.00 - 112.3 0.2 PacAsset 184.50 1.00 226.15 156.25 1.41 190.1 -2.9 PrincssPE € 7.67 0.01 8.15 6.95 6.73 9.2 -16.6
BlckRSmlr 907.00 -5.00 1010 787.00 1.60 989.2 -8.3 Abf Gd Inc 153.63 -0.25 154.50 146.25 -50.3 - 159.7 The prices listed are indicative and believed accurate at the time of publication.
IPST Gbl Eq 151.75 0.50 172.00 149.00 3.03 151.4 0.2 PacHorzn 164.00 2.50 223.77 142.50 0.85 185.7 -11.7 Riverstone 770.00 14.00 1114 750.00 - 1122.7 -31.4
BlckRThrmt 325.25 2.00 370.00 274.28 1.35 376.7 -13.7 EcofinWatr 155.75 - 156.50 152.67 -86.8 -97.8 160.7 No offer is made by Morningstar or the FT. The FT does not warrant nor
IPST Mngd 102.75 - 104.00 101.00 - 103.2 -0.4 Perp I&G 391.40 4.80 431.00 382.40 3.17 390.4 0.3 StdLfEuPv♦ 198.50 -2.00 223.50 198.00 3.40 271.7 -26.9
BlckRWld 167.50 4.75 336.91 161.00 12.54 189.6 -11.7 JPM I&C 175.75 - 176.75 170.41 -20.5 - 192.1 guarantee that the information is reliable or complete. The FT does not accept
Bluecrest A 192.30 0.30 200.00 185.60 - 200.9 -4.3 IPST UK Eq 166.00 0.75 175.50 155.00 3.70 162.0 2.5 PerAsset 34450 150.00 36313.1 33000 1.63 35038. -1.7 Conventional - Property ICs 52 Week Dis(-) JupiterDv&G 114.25 - 116.50 109.00 -3.6 - 122.3 responsibility and will not be liable for any loss arising from the reliance on
Brit Emp 440.90 10.40 557.08 427.85 2.38 510.8 -13.7 InvPpUK 367.00 2.00 395.35 320.25 4.67 391.1 -6.2 6 Price +/-Chg High Low Yld NAV or Pm JZ Capital 365.50 - 365.00 354.00 - - 369.8 or use of the information.
Brunner 494.50 -6.00 584.12 494.28 2.43 569.9 -13.2 Invs Cap A♦ 87.50 - 102.00 86.00 5.19 91.6 -4.5 PolarFins 96.50 0.50 112.84 94.17 3.21 104.5 -7.7 Direct Property M&GHghIc 117.13 - 117.75 112.25 -21.4 -98.4 122.8
Calednia 2240 5.00 2517.66 2110 2.26 2756.5 -18.7 Invs Cap B 87.50 -1.00 103.00 87.00 3.92 91.6 -4.5 ..Sub 4.25 - 9.50 3.50 - - - UILFn16 189.25 - 189.90 183.00 - - - The FT Share Service is a paid-for-print listing service and may not be fully
AXA Propty 53.00 0.13 55.50 41.57 - - -
CanGen C$ 17.02 0.57 22.00 16.45 3.20 21.9 -22.3 Invs CapU♦ 350.00 - 404.95 345.00 1.95 366.6 -4.5 PolarHealth 164.00 - 187.50 162.05 2.20 179.3 -8.5 UILFn18 144.50 - 146.50 137.00 - - - representative of all LSE-listed companies. This service is available to all listed
CustdnREIT 106.50 -1.75 110.50 104.00 5.16 - -
Cap Gear 3290 -40.00 3575 3152.28 0.49 3348.3 -1.7 JLaingInf 116.50 -0.10 128.60 113.99 5.69 106.0 9.9 PolarTech 575.50 12.50 647.00 487.40 - 591.8 -2.8 UILFn20 125.50 - 127.00 109.50 - - - companies, subject to the Editor’s discretion. For new sales enquiries please
F&CComPrp♦ 132.20 0.30 149.00 129.50 4.54 130.4 1.4
City Merch 177.00 -1.00 194.00 177.00 5.65 174.9 1.2 JPM Amer 261.50 5.10 295.37 238.90 1.24 278.5 -6.1 ProspJap $ 1.01 0.02 1.09 0.90 - 1.3 -22.3 email jessica.llewelyn@ft.com or call 020 7873 4012.
F&CUKRealE 98.75 -0.25 105.50 94.00 5.06 97.2 1.6
CityNatRs 69.38 -0.75 107.00 67.37 8.07 90.0 -22.9 JPM Asn♦ 199.25 4.50 268.92 182.00 1.10 227.3 -12.3 QatarInvF $ 0.95 0.02 1.49 0.90 3.30 1.1 -13.6
Longbow 103.00 - 106.75 101.25 5.83 - - Investment Companies - AIM
City Lon 366.40 5.90 418.35 358.72 4.13 359.6 1.9 JPM Brazil 34.75 -0.13 62.80 32.25 1.15 37.1 -6.3 RIT Cap 1610 23.00 1690 1393.64 1.84 1573.8 2.3
PictonProp 70.00 - 74.75 66.00 4.50 73.1 -4.2
DexionAb 169.50 -0.75 191.00 169.50 - 189.0 -10.3 JPM China♦ 146.00 4.50 233.96 136.30 1.10 177.9 -17.9 RobecoNV € 30.38 - - - - - -
SLIPropInc♦ 85.75 1.75 90.25 78.10 5.42 82.1 4.4
52 Week Dis(-) Data provided by Morningstar
DiverseInc♦ 89.25 0.25 97.50 78.00 2.63 89.0 0.3 JPMElct MC 100.00 - 101.47 97.01 0.35 101.3 -1.3 RolincoNV € 28.32 - - - - - - Price +/-Chg High Low Yld NAV or Pm
UKComPrp 81.95 0.60 94.00 79.55 4.49 84.5 -3.0
Dun Inc 212.00 3.25 273.00 208.25 5.31 230.2 -7.9 ..MG 574.00 -1.50 635.00 569.60 1.18 584.7 -1.8 Ruffer Inv 204.50 0.50 226.00 204.00 - 203.9 0.3 AdFrntMkt 48.88 - 60.50 48.13 - 53.7 -9.0
Dun Sml♦ 188.50 -4.25 229.00 176.03 2.81 223.8 -15.8 ..MI 97.00 - 110.00 92.00 3.92 98.5 -1.5 SchdrAsiaP♦ 251.00 4.25 321.50 226.25 1.10 283.8 -11.6 Property Securities CrysAmber 152.75 - 173.96 148.00 0.3 150.4 1.6
JPM Emrg 508.00 6.00 674.65 486.00 1.08 580.2 -12.4 Schdr Inc♦ 239.00 2.13 348.25 235.00 4.23 256.3 -6.7 SchdrGlbRe 124.25 -1.00 132.98 111.90 1.75 131.6 -5.6 GLI Finance 38.25 -0.25 65.00 32.00 13.1 - -
EcofinWatr 107.75 3.75 158.90 104.00 6.73 136.8 -21.2
JPM EurGth 230.50 -2.00 263.00 217.00 2.65 246.3 -6.4 SchdrJap 141.00 1.50 165.00 130.00 1.28 158.8 -11.2 TR Prop 278.00 0.30 325.00 277.00 2.77 305.8 -9.1 IndiaCap 59.50 0.38 69.40 52.00 - 70.4 -15.5
..CULS 99.50 -0.25 106.00 99.21 - - -
EdinDragn 224.00 2.00 311.00 212.50 0.98 257.9 -13.1 JPM EurInc 130.00 1.75 147.50 120.00 3.65 129.8 0.2 SchdrOrient♦ 169.00 4.75 215.25 154.00 4.59 175.1 -3.5 VCTs 52 Week Dis(-) Infra India 18.25 - 21.99 12.00 - 49.7 -63.3
JPM EuSm 267.00 4.00 294.46 204.24 1.20 293.2 -8.9 SchdrUK♦ 145.50 1.25 174.00 143.75 3.44 163.5 -11.0
..CULS
Edin Inv
101.50
686.00
- 107.89 100.25
6.00 737.00 637.50
-
3.48
-
681.4
-
0.7 JPM Clavr 550.50 2.50 645.18 548.00 3.72 594.2 -7.4 SchdrUKMd♦ 443.50 1.50 504.50 430.17 1.92 493.2 -10.1
Price +/-Chg High Low Yld NAV or Pm MMP
Marwyn Val
2.63
210.00
-
-
4.19 2.50 -
251.93 199.07 -
-
-
-
-
www.morningstar.co.uk
AlbionDev 68.25 - 70.89 66.00 7.33 72.8 -6.2
Wednesday 20 January 2016 FINANCIAL TIMES 27

MANAGED FUNDS SERVICE

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

Artemis Strategic Bond R Q Inc 52.67 55.92 -0.11 4.22 Blackrock UK Long Lease £ 1079.95 - 8.43 0.00 Cavendish Worldwide Fund B Class 284.40 - 2.80 0.69 Asia Pacific Ops W-Acc £ 1.07 - 0.03 0.41 UK Corporate Bond £ 1.19 - -0.01 3.99 HL Multi-Manager Equity & Bond Trust A Inc 105.17 110.54 -0.56 2.25

ACPI Global UCITS Funds Plc (IRL) Artemis UK Growth R Acc 432.70 458.35 5.17 0.54 BLK Intl Gold & General $ 3.70 3.90 0.02 0.00 Cavendish Worldwide Fund A Class 283.70 - 2.80 0.00 Fidelity Asian Dividend Fund A-Accumulation £ 1.05 - 0.02 1.39 UK Corporate Bond - Gross £ 2.25 - -0.01 3.85 HL Multi-Manager Equity & Bond Trust M Inc 105.17 110.53 -0.56 1.04
www.acpishard.com
Regulated Artemis UK Smaller Cos R Acc 1141.81 1230.05 -1.23 0.47 Cavendish Worldwide Fund C Acc 291.80xd - 2.90 0.62 Fidelity Asian Dividend Fund A-Income £ 0.99 - 0.02 3.29 UK Gilt Bond £ 1.28 - 0.00 1.96 HL Multi-Manager Equity & Bond Trust A Acc 142.91 150.21 -0.77 2.22

ACPI Emerging Mkts FI UCITS Fund USD A $ 102.65 - -0.39 0.00 Artemis UK Special Sits R Acc 503.60 534.99 4.26 1.61 BONHOTE Cavendish AIM Fund B Class 153.20 - -0.20 0.71 China Consumer £ 1.37 - 0.03 0.08 UK Gilt Gross £ 2.05 - -0.01 1.93 HL Multi-Manager Equity & Bond Trust M Acc 142.92 150.21 -0.77 1.03
Other International Funds
ACPI Global Credit UCITS Funds USD A $ 13.86 - -0.02 0.00 Artemis US Abs Ret I Acc 108.37 - -0.13 0.00 Cavendish AIM Fund A Class 149.10 - -0.20 0.00 Emerging Asia £ 1.12 - 0.02 0.14 UK Long Corp Bond £ 1.33 - -0.02 4.40 HL Multi-Manager Strategic Bond Trust A Acc 166.12 171.25 -0.28 1.80
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6649.00 - -46.00 2.28
ACPI Global Fixed Income UCITS Fund USD A $ 152.31 - -0.15 0.00 Artemis US Equity I Acc 113.26 - 1.86 0.28 Cavendish Asia Pacific Fund B Class 145.00 - 2.90 1.74 Dragon Capital Group Emerg Eur, Mid East & Africa H £ 1.14 - 0.02 1.06 UK Long Corp Bond - Gross £ 2.46 - -0.03 4.24 HL Multi-Manager Strategic Bond Trust M Acc 166.10 171.23 -0.28 0.89
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9920.00 - 129.00 0.92 c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Q ACPI India Fixed Income UCITS Fund USD A $ 9.75 - -0.01 - Artemis US Select I Acc 114.83 - 1.87 0.12 Cavendish Asia Pacific Fund A Class 145.00 - 2.90 0.77 Fund information, dealing and administration: funds@dragoncapital.com Enhanced Income - Acc £ 1.85 - 0.02 5.29 UK Long Corporate Bond Fund - Gross Income £ 10.68 - -0.14 4.38 HL Multi-Manager Strategic Bond Trust A Inc 137.85 142.11 -0.23 1.82
Other International Funds Retail Share Classes
ACPI India Fixed Income UCITS Fund USD A3 $ 83.34 - -0.09 0.00 Artemis US Select I Inc 102.56 - 1.67 - Cavendish Asia Pacific Fund C Acc 151.50 - 3.00 1.71 Enhanced Income - Inc £ 1.18 - 0.02 7.27 HL Multi-Manager Strategic Bond Trust M Inc 137.83 142.09 -0.24 0.91
Braemar Group PCC Limited (GSY) Vietnam Enterprise Inv. (VEIL) NAV $ 3.48 - -0.11 0.00 Emerging Markets - retail £ 1.18 - 0.02 0.07
ACPI International Bond UCITS Fund USD A $ 17.96 - -0.01 0.00 Artemis US Smlr Cos I Acc 113.60 - 1.75 0.00 Regulated Cavendish European Fund B Class 136.40 - 2.30 1.10 European - Inc £ 1.38 - 0.02 0.76 HL Multi Manager Emerging Markets A Acc 80.81 83.29 -0.93 0.33
Vietnam Growth Fund (VGF) NAV $ 23.26 - 0.42 0.00 {*}CAR - Net income reinvested
UK Agricultural Class A £ 1.25 - -0.02 0.00
Artemis US Ex Alpha I Acc 122.04 - 1.85 0.14 Cavendish European Fund A Class 135.30 - 2.30 0.29 European £ 15.74 - 0.27 1.15 HL Multi-Manager European A Acc 98.59 101.62 -1.01 0.74
Vietnam Property Fund (VPF) NAV $ 0.92 - 0.11 0.00
UK Agricultural Class B £ 1.37 - -0.02 0.00
ACPI Select UCITS Funds PLC (IRL) Cavendish Japan Fund B Class 154.40 - -0.20 0.72 European Opportunities £ 3.66 - 0.05 0.23
FIL Fund Management (LUX) HL Multi-Manager UK Growth A Acc 98.44 101.48 -1.09 1.24
Regulated
Student Accom Class B £ 0.55 - -0.17 0.00 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Artisan Partners Global Funds PLC (IRL) Cavendish Japan Fund A Class 153.40 - -0.30 0.00 Extra Income £ 0.26 - 0.00 3.35
ACPI Balanced UCITS Fund USD Retail $ 13.14 - -0.11 0.00 DSM Capital Partners Funds (LUX) Phone: 800 22 089, 800 22 088
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland
Cavendish North American Fund B Class 182.50 - 0.10 0.52 www.dsmsicav.com Extra Income - Gross £ 0.26 - 0.00 3.33 Regulated Haussmann
ACPI Balanced UCITS Fund EUR Retail € 9.91 - -0.08 0.00 Tel: 44 (0) 207 766 7130
FCA Recognised Regulated China Consumer A-GBP £ 13.26 - 0.16 0.00 Other International Funds
Cavendish North American Fund A Class 177.30 - 0.20 0.00 Global Dividend - Acc £ 1.61 - 0.02 3.03
ACPI Balanced UCITS Fund GBP Retail £ 10.02 - -0.08 0.00 Artisan Partners Global Funds plc Global Growth I2 Acc € 124.87 - -4.27 0.00 Haussmann Cls A $ 2682.99 - 11.43 0.00
China Focus A-GBP £ 3.84 - 0.03 0.69
Artisan Emerging Markets I USD Acc $ 5.97 - -0.12 0.00 Cavendish Technology Fund B Class 276.10 - 0.70 0.02 Global Dividend - Inc £ 1.42 - 0.01 3.26
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Global Growth I1 Eur € 93.37 - -3.20 - Haussmann Cls C € 2344.47 - 7.66 0.00
Global Financial Services A-GBP £ 0.42 - 0.00 0.11
Artisan Global Equity Fund Class I USD Acc $ 13.01 - -0.21 0.00 Cavendish Technology Fund A Class 262.10 - 0.60 0.00 Global Focus £ 12.80 - 0.19 0.00
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Haussmann Cls D SFr 1239.94 - 3.45 0.00
Global Health Care A-GBP £ 0.55 - 0.00 0.00
Artisan Global Opportunities I USD Acc $ 11.12 - -0.21 0.00 Cavendish UK Balanced Income Fund B Class 130.60 - 1.00 4.93 Global High Yield Fund - A Gross Acc £ 11.51 - 0.00 4.97
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Eclectica Asset Management (UK)
CCLA Investment Management Ltd (UK) Global Industrials A-GBP £ 0.59 - 0.00 0.00
Artisan Global Value Fund Class I USD Acc $ 14.37 - -0.35 0.00 Cavendish UK Balanced Income A Class 124.20 - 1.00 5.18 40 Dukes Place, London EC3A 7NH Global High Yield Fund - A Gross Inc £ 9.48 - 0.00 5.68
ACPI Horizon UCITS Fund $ 12.33 - -0.07 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET Heartwood Wealth Management Limited (IRL)
Order Desk and Enquiries: 0345 608 0941 Global Inflation-Linked Bd A-GBP-Hdg £ 1.14 - 0.00 0.56
Authorised Inv Funds Cavendish UK Select Fund B Class 133.80 - 1.30 2.31 Global High Yield Fund - A Net Acc £ 11.06 - 0.00 5.04 Regulated
Artisan US Value Equity Fund Class I USD Acc $ 9.32 - -0.20 0.00 Authorised Corporate Director - Capita Financial Managers
The Public Sector Deposit Fund
Authorised Inv Funds Global Real Asset Securities £ 1.26 - 0.00 0.00 Heartwood Caut Multi Asset B Acc 136.06 - -0.25 0.00
Cavendish UK Select Fund A Class 133.60 - 1.30 1.39 Global High Yield Fund - A Net Inc £ 9.47 - 0.00 5.68
Abbey Life Assurance Company Limited (UK) The Public Sector Deposit Fund-share class 1 ♦ F 100.00 - 0.00 0.50
CF Eclectica Agriculture A EUR Acc ♦ € 1.31 - 0.00 0.00 Global Technology A-GBP £ 0.25 - 0.01 0.00
100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900 Global Property - Acc £ 1.48 - 0.02 1.28
Ashmore Sicav (LUX) The Public Sector Deposit Fund-share class 2 ♦ F 100.00 - 0.00 0.34
additional fund prices can be found @ www.abbeylife.co.uk CF Eclectica Agriculture A GBP Acc ♦ 99.66 - 0.24 0.00
2 rue Albert Borschette L-1246 Luxembourg Global Telecomms A-GBP £ 0.28 - 0.00 1.15 Henderson Global Investors (UK)
Insurances The Public Sector Deposit Fund-share class 3 ♦ F 100.00 - 0.00 0.39 Cedar Rock Capital Limited (IRL) Global Property W Inc £ 1.21 - 0.01 3.00
FCA Recognised PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
Regulated CF Eclectica Agriculture A USD Acc ♦ $ 1.42 - 0.00 0.00 India Focus A-GBP £ 4.18 - -0.03 0.00
Life Funds www.henderson.com
Ashmore SICAV Emerging Market Debt Fund $ 86.10 - -0.16 9.02 Global Special Sits £ 25.20 - 0.34 0.00
The Public Sector Deposit Fund-share class 4 ♦ F 100.00 - 0.00 0.45 Cedar Rock Capital Fd Plc $ 345.33 - -24.08 0.00
Prop. Acc. Ser 2 1560.90 1643.00 -0.90 - CF Eclectica Agriculture C EUR Acc ♦ € 1.36 - 0.00 0.43 Latin America A-GBP £ 1.22 - 0.01 0.67 Authorised Inv Funds
Ashmore SICAV Emerging Market Frontier Equity Fund $ 128.53 - -2.30 0.98 Index Emerging Markets P-Acc £ 0.90 - 0.02 2.75
The Public Sector Deposit Fund-share class 5 ♦ F 100.00 - 0.00 0.34 Cedar Rock Capital Fd Plc £ 376.67 - -16.82 0.00 Asia Pacific Capital Growth A Acc 668.60 - 11.30 0.16
Selective Acc. Ser 2 1537.20 1618.10 2.50 - CF Eclectica Agriculture C GBP Acc ♦ 103.51 - 0.25 0.42 Sterling Cash Fund A-ACC-GBP £ 1.00 - - -
Ashmore SICAV Emerging Market Total Return Fund $ 73.68 - -0.18 6.41 Index Europe ex UK P-Acc £ 0.98 - 0.01 2.44
Cedar Rock Capital Fd Plc € 331.66 - -22.35 0.00 Asian Dividend Income Inc 79.88 84.29 0.95 6.95
American Ser. 4 1634.60 1720.60 -2.10 - CF Eclectica Agriculture C USD Acc ♦ $ 1.46 - 0.00 0.43
Ashmore SICAV Global Small Cap Equity Fund $ 112.59 - 0.35 0.00 Index Japan P-Acc £ 1.12 - 0.01 1.52
CCLA Investment Management Ltd (UK) Cautious Managed A Acc 230.60 - 1.40 3.31
Custodian Ser. 4 482.10 507.50 1.70 - Findlay Park Funds Plc (IRL)
Senator House 85 Queen Victoria Street London EC4V 4ET Index Pacific ex Japan P-Acc £ 0.98 - 0.03 3.81
Ashmore SICAV Local Currency Fund $ 78.54 - -0.07 0.32
Property & Other UK Unit Trusts Charles Schwab Worldwide Funds Plc (IRL) 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Cautious Managed A Inc 142.60 - 0.90 3.37
Equity Ser. 4 529.90 557.80 5.80 -
EM Mkts Corp.Debt USD F $ 81.72 - -0.11 9.18 CBF Church of England Funds Regulated Index UK A-Acc £ 0.79 - 0.01 2.90 FCA Recognised
China Opportunities A Acc 778.80 - 14.90 0.66
European Ser 4 550.00 578.90 6.90 - Investment Inc 1272.88 1286.96 -16.91 3.78 Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 American Fund USD Class $ 74.60 - -1.33 0.00
EM Mkts Loc.Ccy Bd USD F $ 71.59 - -0.31 4.41 Index UK P-Acc £ 0.96 - 0.01 3.15
Emerging Markets Opportunities A Acc 132.10 - 1.40 0.67
Fixed Int. Ser. 4 902.40 949.90 -2.30 - Investment Acc 2617.37 2646.32 -34.77 - American Fund GBP Hedged £ 40.64 - -0.73 0.00
Index US A-Acc £ 1.62 - 0.02 1.40
European Growth A Acc 164.40 - 2.50 0.53
Intl Ser. 4 422.60 444.80 2.00 - Global Equity Inc 144.02 145.61 -2.67 4.31 Chartered Asset Management Pte Ltd American Fund GBP Unhedged £ 52.15 - -0.76 -
Index US P-Acc £ 1.25 - 0.01 1.60
Other International Funds EdenTree Investment Management Ltd (UK) European Selected Opportunities A Acc 1235.00 - 21.00 0.67
Japan Ser 4 365.80 385.10 -0.70 - Global Equity Acc 212.59 214.94 -3.93 - Latin American Fund USD Class $ 9.90 - -0.28 0.00
CAM-GTF Limited $ 270848.04 270848.04 -9192.82 0.00 PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 Index World A-Acc £ 1.39 - 0.02 1.77
European Special Situations A Acc 94.66 - -0.29 1.05
Man. Ser. 4 1610.90 1695.70 7.90 - UK Equity Inc 135.73 136.96 -4.41 4.05 Authorised Inv Funds Latin American Fund GBP Unhedged £ 7.02 - -0.18 -
CAM GTi Limited $ 605.58 - -7.40 0.00 Index World P-Acc £ 1.13 - 0.01 1.89
Amity UK Cls A Inc 200.30 - 1.70 1.45 Fixed Interest Monthly Income A Inc 21.42 22.47 -0.02 5.83
Money Ser. 4 524.40 552.00 0.00 - UK Equity Acc 202.83 204.66 -6.58 -
Raffles-Asia Investment Company $ 1.56 1.56 0.01 5.51 Japan £ 2.74 - 0.02 0.00
Amity UK Cls B Inc 199.50 - 1.70 2.24 Global Care Growth A Inc 189.70 - 0.70 0.00
Prop. Ser. 4 1110.00 1168.40 0.00 - Fixed Interest Inc 161.98 162.79 0.34 3.96 Foord Asset Management
Aspect Capital Ltd (UK) Japan Smaller Companies £ 2.03 - 0.02 0.00
Other International Funds
Higher Income Cls A Inc 114.80 - 0.80 5.00 Global Equity Income A Inc 47.86 - 0.43 3.87
Custodian Ser 5 462.80 487.10 1.60 - Other International Funds Fixed Interest Acc 498.01 500.51 1.02 -
MoneyBuilder Asset Allocator £ 1.16 - 0.01 0.64 Foord International Trust $ 32.49 - -0.15 0.00
Aspect Diversified USD $ 447.24 - 6.60 0.00 Higher Income Cls B Inc 118.30 - 0.80 4.91 Global Growth Fund 1946.95 2034.84 12.67 0.00
International Ser 5 405.60 427.00 1.80 - Property Fund Inc 133.01 137.47 -1.84 6.51
MoneyBuilder Balanced £ 0.49 - 0.00 4.04 Foord Global Equity Fund_Class B $ 11.19 - -0.07 0.00
Aspect Diversified EUR € 268.65 - 3.87 - UK Equity Growth Cls A Inc 224.40 - 2.30 0.59 Global Technology A Acc 924.00 - 4.40 0.00
Managed Ser 5 1546.40 1627.70 7.70 - Property Fund Acc 234.22 242.07 2.73 -
Money Builder Dividend £ 2.51 - 0.03 4.54
Aspect Diversified GBP £ 137.57 - 2.07 0.00 UK Equity Growth Cls B Inc 228.70 - 2.40 1.18 Multi-Manager Absolute Return A Acc 133.40 - 0.00 0.39
Money Ser 5 513.50 540.50 0.00 -
MoneyBuilder Growth £ 0.71 - 0.01 2.39 Franklin Templeton International Services Sarl (IRL)
Aspect Diversified CHF SFr 128.35 - 1.87 0.00 Amity Balanced For Charities A Inc 103.90 - 0.50 6.11 Multi-Manager Active A Acc ▲ 167.70 - 1.50 0.00
Property Ser 5 1065.50 1121.60 0.00 - JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
CCLA Fund Managers Ltd (UK) MoneyBuilder Growth ISA £ 0.72 - 0.01 2.55
Cheyne Capital Management (UK) LLP (IRL) Other International Funds Multi-Manager Distribution A Inc 123.00 - -0.50 3.39
Pension Funds Aspect Diversified Trends USD $ 134.89 - 1.96 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET Amity European Fund Cls A Inc 191.00 - 3.00 1.23
Regulated Franklin Emerging Market Debt Opportunities Fund Plc
Property & Other UK Unit Trusts MoneyBuilder Income £ 0.35 - 0.00 3.24
American 1878.10 1976.90 -1.90 - Aspect Diversified Trends EUR € 134.97 - 1.91 0.00 Amity European Fund Cls B Inc 192.50 - 3.00 2.08 Multi-Manager Diversified A Acc 75.81 - -0.33 2.93
COIF Charity Funds (UK) Cheyne Convertibles Absolute Return Fund € 1317.45 - -3.63 0.00 Franklin Emg Mkts Debt Opp CHFSFr 16.83 - -0.61 8.30
Equity 4589.10 4830.60 45.20 - MoneyBuilder Income -Gross £ 0.35 - 0.00 3.23
Aspect Diversified Trends GBP £ 140.24 - 2.09 0.00 Investment Inc 1180.80 1193.86 -18.89 3.62 Cheyne Global Credit Fund € 114.08 - -0.27 0.00 Amity Global Equity Inc for Charities A Inc 97.40 - 0.94 4.01 Multi-Manager Global Select Acc 170.50 - 0.50 0.00
Franklin Emg Mkts Debt Opp EUR € 11.85 - -0.42 7.39
European 1097.60 1155.40 12.10 - Multi Asset Adventurous A-Acc £ 1.26 - 0.02 0.44
Investment Acc 11442.51 11569.08 -183.11 - Cheyne European Mid Cap Fund € 1098.60 - -15.56 0.00 Amity International Cls A Inc 193.80 - 2.60 1.38 Multi-Manager Income & Growth A Acc 146.80 - -0.70 2.23
Franklin Emg Mkts Debt Opp GBP £ 9.95 - -0.23 7.13
Fixed Int. 1651.90 1738.80 -5.20 - Multi Asset Alloc Adventurous A-Acc £ 3.54 - 0.06 3.07
Atlantas Sicav (LUX) Ethical Invest Inc 181.86 183.87 -2.88 3.73 Amity International Cls B Inc 195.10 - 2.70 2.24 Multi-Manager Income & Growth A Inc 134.90 - -0.60 2.26
Franklin Emg Mkts Debt Opp SGD S$ 21.85 - -0.58 6.33
Regulated Multi Asset Alloc Strategic A-Acc £ 1.14 - 0.00 0.38
International 890.20 937.10 4.10 - Ethical Invest Acc 235.86 238.47 -3.74 - Multi-Manager Managed A Acc 218.40 - 1.80 0.42
Cheyne Capital Management (UK) LLP Amity Sterling Bond Fund A Inc 103.60 - -0.30 5.20
Franklin Emg Mkts Debt Opp USD $ 16.71 - -0.47 7.19
American Dynamic $ 3156.19 - -182.66 0.00
Japan 384.00 404.20 -1.70 - Other International Funds Multi Asset Alloc Def - Gross A £ 1.11 - 0.01 0.36
Global Equity Inc 139.12 140.66 -2.22 4.41 Amity Sterling Bond Fund B Inc 112.10 - -0.30 5.19 Multi-Manager Managed A Inc 214.50 - 1.80 0.41
American One $ 2990.05 - -154.70 0.00 Cheyne European Event Driven Fund € 134.54 - -11.29 0.00
Managed 4148.10 4366.50 18.60 - Multi Asset Alloc Def - Net A £ 1.11 - 0.01 0.38
Global Equity Acc 207.86 210.16 -3.32 - Sterling Bond Acc 194.40 203.12 -1.22 2.88
Bond Global € 1398.50 - -5.82 0.00 Cheyne Real Estate Credit Holdings Fund £ 162.87 - 1.01 0.00 Frontier Capital (Bermuda) Limited
Property 2876.70 3028.20 -1.70 - Multi Asset Alloc Growth A £ 1.16 - 0.01 0.09
Fixed Interest Inc 132.99 133.66 0.19 4.14 Other International Sterling Bond Inc 59.91 62.59 -0.38 2.92
Edinburgh Partners Limited (IRL)
Eurocroissance € 833.31 - -40.64 0.00 Cheyne Real Estate Credit Holdings Fund III £ 111.98 - 0.56 0.00
Security 1476.70 1554.50 0.10 - 27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Multi Asset Defensive £ 1.20 - 0.00 0.26 Commercial Property-GBP Class £ 71.42 - -0.53 -
Fixed Interest Acc 770.57 774.43 1.12 - Strategic Bond A Inc 123.50 - -0.20 5.25
Far East $ 617.21 - -43.50 0.00 Dealing - Fax only - +353 1 434 5230
Cheyne Real Estate Debt Fund Class A1 £ 131.65 - 0.83 0.00 Multi Asset Defensive - Gross £ 1.21 - 0.01 0.26 Global Real Estate-GBP C Class £ 45.26 - -0.50 -
Selective 1963.00 2066.30 9.70 - Property Inc 114.29 118.12 -1.61 5.79 FCA Recognised UK & Irish Smaller Companies A Acc 516.00 - 1.90 0.00
Cheyne Total Return Credit Fund - December 2017 Class $ 152.88 - -20.24 0.00 Edinburgh Partners Opportunities Fund PLC
Formerly Hill Samuel Life Assurance Ltd Multi Asset Growth £ 1.31 - 0.01 0.25
Property Acc 248.62 256.95 2.77 - UK Absolute Return A Acc 151.10 - 0.70 0.00
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 European Opportunities I EUR € 2.20 - -0.02 2.30
Atlantis Investment Management Ltd (IRL) Cheyne Total Return Credit Fund 2020 $ 103.39 - 0.01 - MultiManager Balanced £ 1.09 - 0.00 0.56
Local Authorities Property Fd (LAMIT) (UK) UK Alpha A Acc ♦ 107.80 - 1.30 1.85
Managed Ser A (Life) 1522.10 1610.70 -9.20 - 2nd Floor, 13 St Swithin's Lane, London EC4N 8AL European Opportunities I GBP £ 1.67 - -0.02 2.46
www.atlantis-investmenet.com, Tel: 0207 877 3377 Property 274.76 295.14 2.73 4.81 Multi Asset Open Growth A-Acc £ 0.44 - -0.01 0.60
Managed Ser A (Pensions) 1006.20 1059.10 -7.50 - UK Equity Income & Growth A Inc 561.20 - 4.90 3.96
Regulated European Opportunities I USD $ 2.40 - -0.04 2.08
Cohen & Steers SICAV (LUX) Multi Asset Open Strategic A-Acc £ 1.19 - 0.00 1.04
Formerly Target Life Assurance Ltd Atlantis China Fund $ 6.44 - 0.00 0.00 UK Index A Acc 462.60 - 7.00 2.95
Regulated European Opportunities A EUR € 2.15 - -0.02 1.60
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 CG Asset Management Limited (IRL) Multi Asset Open Strategic A-Inc £ 0.29 - 0.00 2.55
Atlantis China Healthcare Fund $ 1.87 - 0.03 0.00 European Real Estate Securities € 21.5385 - -0.1250 1.58 UK Property A Acc 193.08 203.24 0.05 4.04
Managed (Life) 1546.50 1627.90 -8.50 - Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Global Opportunities I USD $ 1.47 - -0.01 2.12
00 353 1 434 5098 Multi Asset Strategic £ 1.49 - 0.01 0.30 Fundsmith LLP (1200)F (UK)
Atlantis Japan Opportunities Fund $ 2.38 - -0.01 0.00 Europ.RealEstate Sec. IX € 28.8864 - -0.1675 0.00 UK Property A Inc 97.68 102.81 0.03 4.16
Managed Growth (Life) 476.80 501.90 -3.70 - FCA Recognised Global Opportunities I GBP £ 1.03 - -0.01 1.93 PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815
Open World A-Acc £ 1.14 - -0.01 0.00 www.fundsmith.co.uk, enquiries@fundsmith.co.uk
Atlantis Asian Fund $ 6.18 - 0.02 0.00 Gbl Listed Infrastructure I $ 9.1745 - -0.0476 - UK Tracker A Acc 206.70 - 3.50 3.05
Managed (Pensions) 6038.00 6355.70 -44.20 - Capital Gearing Portfolio Fund Plc £ 27284.37 27284.37 26.55 0.61 Global Opportunities I EUR € 1.52 - -0.01 1.98 Authorised Inv Funds
Multi Asset Income A Gross Acc £ 1.53 - 0.00 3.49
CG Portfolio Fund Plc Gbl Listed Infrastructure IX $ 9.2144 - -0.0478 - US Growth A Acc 745.00 - 0.70 0.00
Managed Growth (Pensions) 576.10 606.40 -5.40 - Global Opportunities A GBP £ 0.97 - 0.00 1.46 Fundsmith Equity T Acc 223.20 - 1.69 1.12
Real Return Cls A £ 174.53 174.53 2.43 1.74 Multi Asset Income A Gross Inc £ 1.06 - 0.00 5.01
additional fund prices can be found on our website Gbl RealEstate Sec. I $ 10.1260 - -0.0715 1.40
Fundsmith Equity T Inc 210.12 - 1.58 1.13

AXIOM
Pan European Opportunities I EUR € 1.35 - -0.01 -
Dollar Fund Cls D £ 136.40 136.40 2.11 1.62 Multi Asset Income A Net Acc £ 1.45 - 0.00 3.50
Gbl RealEstate Sec. IX $ 12.0562 - -0.0852 0.00
ALTERNATIVE INVESTMENTS Capital Value Fund Cls V £ 132.15 132.15 0.11 0.27 Multi Asset Income A Net Inc £ 1.06 - 0.00 5.01
GYS Investment Management Ltd (GSY)
South East Asia £ 7.72 - 0.15 0.12 Regulated
Consistent Unit Tst Mgt Co Ltd (1200)F (UK)
PO BOX 10117, Chelmsford, Essex, CM1 9JB Special Situations £ 28.94 - 0.31 0.77 Taurus Emerging Fund Ltd $ 162.15 165.46 0.81 0.00
Axiom Alternative Investments (FRA) Dealing & Client Services 0845 0264281
1 Conduit Street - 4th floor - London W1S 2XA Authorised Inv Funds Sterling Core Plus Red Dur £ 9.96 - -0.03 -
www.axiom-ai.com Tel: +44 330 822 0374 Hermes Investment Funds Plc (IRL)
Consistent UT Inc 50.87 51.47 0.52 4.85 Generali Worldwide Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
Algebris Investments (IRL) Regulated Strategic Bond £ 0.31 - 0.00 2.83
EFG Hermes PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 FCA Recognised
Regulated Axiom Contingent Capital € 1003.53 - -6.45 - Consistent UT Acc 118.55 119.95 1.20 4.70
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Strategic Bond Gross £ 0.31 - 0.00 2.83 International Insurances Hermes Abs Return Credit Fund Class F Acc £ £ 1.06 1.06 0.00 -

Asset Management
Algebris Financial Credit Fund - Class I EUR € 130.99 - 0.26 0.00 Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
Axiom Contingent Capital £ 1007.96 - -6.31 - Practical Investment Inc 191.97 196.93 1.17 3.99 Global Multi-Strategy Managed $ 4.52 4.87 -0.11 0.00

Asset Manageme
Canada Life Investments (UK) Other International Funds Target 2015 £ 0.50 - 0.00 0.38 Hermes Abs Return Credit Fund Class R Acc € € 1.99 1.99 0.01 -
Algebris Financial Income Fund - Class I EUR € 110.00 - -1.20 0.00
Axiom Equity $ 746.57 - -15.14 - 1-6 Lombard Street, EC3V 9JU. Dealing 0345 606 6180 Practical Investment Acc 937.46 961.68 5.72 3.88 UK Multi-Strategy Managed £ 4.72 5.09 -0.07 0.00
The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Target 2020 £ 0.55 - 0.01 0.52 Hermes Active UK Inflation Fund Class F Acc £ 1.29 1.29 0.01 0.00
Algebris Financial Equity Fund - Class B EUR € 86.39 - -1.84 - Authorised Inv Funds
Axiom Equity € 783.74 - -16.46 0.00 EU Multi-Strategy Managed € 2.97 3.20 -0.02 0.00
Asia Pacific B Acc 734.83 - 11.46 1.13 EFG-Hermes Frontier Equity UCITS Fund Class I $ 1000.00 - - - Target 2025 £ 1.26 - 0.00 0.32 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.48 1.48 0.01 0.00
Algebris Asset Allocation Fund - Class B EUR € 95.33 - -0.63 -
Axiom Obligataire $ 1739.75 - -9.36 0.00 Global Bond USD $ 3.41 3.67 -0.01 0.00
Balanced B Acc 142.85 - 1.08 1.46 EFG-Hermes MENA Equity UCITS Fund Class A $ 1000.00 - - - Target 2030 £ 1.35 - 0.00 0.40 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.09 3.09 0.03 0.00
Axiom Obligataire € 1734.88 - -9.53 0.00
Corporate Bond B Inc 204.32 - -0.97 4.07 Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 UK Select £ 2.31 - 0.04 0.86 Hermes Global Emerging Markets Fund Class F Acc £ 1.10 1.10 0.01 0.00
Alken Asset Management (LUX)
Axiom Obligataire £ 1747.36 - -9.43 0.00 Genesis Asset Managers LLP
61 Conduit Street, London, W1S 2GB European B Acc 244.04 - 4.59 1.57 Saudi Arabia Equity Fund SR 11.16 - -0.02 0.00 UK Growth £ 3.39 - 0.05 0.00 Hermes Global Emerging Markets Fund Class R Acc € 2.68 2.68 0.03 0.00
www.alken-am.com Other International Funds
Regulated Global Bond B Inc 94.35 - -0.33 2.92 UK Smaller Companies £ 2.07 - 0.01 0.18 Hermes Global Equity Fund Class F Acc £ 1.44 1.44 0.01 0.00
Emerging Mkts NAV £ 4.76 - -0.01 0.00
BLME Asset Management (LUX) Crèdit Andorrà Asset Management (LUX)
Alken European Opportunities € 185.72 - -0.73 0.00 Global Equity B Acc 580.73 - 3.73 1.10 www.creditandorra.com
Electric & General (1000)F (UK) WealthBuilder A Acc £ 0.97 - 0.00 0.47 Hermes Global Equity Fund Class R Acc € 3.64 3.64 0.03 0.00
BLME Sharia'a Umbrella Fund SICAV SIF
Stuart House St.John's Street Peterborough PE1 5DD
Asset Management
Alken European Opportunities £ 113.22 - -0.96 0.00 Regulated FCA Recognised Fidelity PathFinder
Global Equity Income B Inc 117.43 - 0.88 3.93 Orders & Enquiries: 0845 850 0255 Guardian (UK) Hermes Global ESG Equity Fund Class F Acc £ 1.11 1.11 0.00 0.00
Income Fund - Share Class A Acc $ 1134.00 - -0.29 0.00 Crediinvest SICAV Money Market Eur I € 11.21 - 0.00 0.00 Authorised Inv Funds Fidelity PathFinder Foundation 1 Gross Acc (clean) £ 1.09 - 0.01 - Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151
Alken Absolute Return € 134.81 - -0.21 0.00 Global High Yield Bond B Inc 89.47 - -0.61 5.14 Hermes Global High Yield Bond Fund Class F Acc £ 1.06 1.06 -0.01 0.00
Authorised Corporate Director - Carvetian Capital Management Insurances
Income Fund - Share Class G Acc £ 1074.52 - -0.36 0.00 Crediinvest SICAV Money Market Usd A $ 10.03 - 0.00 0.00 Fidelity PathFinder Foundation 1 Acc (clean) £ 1.08 - 0.00 -
Alken Absolute Return £ 109.46 - -0.15 0.00 Global Infrastructure B Acc 106.49 - 0.82 0.93 Electric&General Net Income A 144.10 - 0.50 1.94 Guardian Assurance Hermes Global High Yield Bond Fund Class R Acc € 2.65 2.65 0.00 0.00
Gl Sukuk Fund - Share Class A Acc $ 1214.96 - -2.64 0.00 Crediinvest SICAV Fixed Income Eur € 10.36 - -0.03 0.00 Fidelity PathFinder Foundation 2 Acc (clean) £ 1.06 - 0.00 -
Alken Small Cap € 169.47 - -1.96 0.00 Global Resource B Acc 60.56 - -0.21 0.97 Equity S-GH Class B £ 11.36 - 0.18 -
Hermes Global Small Cap Fund Class F Acc £ £ 0.95 0.95 0.01 -
Gl Sukuk Fund - Share class B Acc £ 1084.26 1084.26 -2.45 0.00 Crediinvest SICAV Fixed Income Usd $ 10.31 - -0.01 0.00 Fidelity PathFinder Foundation 3 Acc (clean) £ 1.04 - 0.01 -
Japan B Acc 49.68 - -0.16 0.92 Managed Fund Bond £ 22.47 23.41 0.00 -
Ennismore Smaller Cos Plc (IRL) Hermes Global Small Cap Fund Class R Acc € € 1.79 1.79 0.02 -
Crediinvest SICAV Spanish Value € 217.31 - -5.32 0.00 5 Kensington Church St, London W8 4LD 020 7368 4220 Fidelity PathFinder Foundation 4 Acc (clean) £ 1.05 - 0.02 -
Amundi Funds (LUX) Portfolio III B Acc 106.51 - 0.03 2.32 Choices Wth-Pfts Lg-tm 321.40 338.30 0.00 -
FCA Recognised Hermes Multi Asset Inflation Fund Class F GBP Acc £ 0.95 0.95 0.00 0.00
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Crediinvest SICAV International Value € 182.53 - -0.72 0.00 Fidelity PathFinder Foundation 5 Acc (clean) £ 1.14 - 0.02 -
Bank of America Cap Mgmt (Ireland) Ltd (IRL) Choices Wth-Pfts St-tm 272.10 286.40 0.00 -
www.amundi-funds.com Portfolio IV B Acc 107.40 - 0.28 2.36 Ennismore European Smlr Cos NAV £ 103.68 - -0.71 0.00 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.00 1.00 0.00 0.00
Regulated
FCA Recognised Crediinvest SICAV Big Cap Value € 13.54 - -0.17 0.00 Fidelity PathFinder Focussed 1 Gross Acc (clean) £ 1.09 - 0.00 -
Portfolio V B Acc 106.10 - 0.50 1.56 Ennismore European Smlr Cos NAV € 136.07 - -0.32 0.00 Choices Managed 587.44 618.36 -2.06 -
Global Liquidity USD $ 1.00 - 0.00 0.48 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.26 1.26 0.03 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.26 - -0.06 0.00 Crediinvest SICAV US American Value $ 16.61 - 0.00 0.00 Fidelity PathFinder Focussed 1 Acc (clean) £ 1.09 - 0.01 -
Portfolio VI B Acc 103.66 - 0.88 1.60 Choices Equity 630.47 663.66 -3.53 -
Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.22 1.22 0.03 1.30
Bd. Global AU Class - R - USD $ 25.10 - -0.12 0.00 Crediinvest SICAV Sustainability € 13.95 - -0.24 0.00 Fidelity PathFinder Focused 2 Acc (Clean) £ 1.09 - 0.01 -
Freedom With Pfts Long-Tm 220.40 232.00 0.00 -
Barclays Investment Funds (CI) Ltd (JER) Portfolio VII B Acc 99.32 - 1.18 1.58 Ennismore European Smlr Cos Hedge Fd Hermes Sourcecap EU Alpha Fund Class R Acc € 2.92 2.92 0.06 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Other International Funds Fidelity PathFinder Focussed 3 Acc (clean) £ 1.07 - 0.01 -
North American B Acc 824.70 - 0.85 0.72 Freedom With Pfts Short-Tm 198.00 208.40 0.00 -
FCA Recognised Hermes Sourcecap EX UK Fund Class F Acc £ 1.33 1.33 0.03 0.00
Eq. Emerging World AU Class - R - USD $ 71.26 - -0.46 0.00 Daiwa SB Investments (UK) Ltd (LUX) NAV € 496.00 - 10.70 0.00 Fidelity PathFinder Focussed 4 Acc (clean) £ 1.08 - 0.02 -
Bond Funds Strategic Return B Acc 94.51 - 0.18 0.00 Freedom Managed 345.04 363.20 -0.08 -
5 King William Street, London EC4N 7DA Hermes Sourcecap EX UK Fund Class R Acc € 2.99 2.99 0.07 0.00
Eq. Greater China AU Class - R - USD $ 486.58 - -3.25 0.00 Sterling Bond F £ 0.45 - -0.01 3.34 Fidelity PathFinder Focussed 5 Acc (clean) £ 1.10 - 0.00 -
www.daiwasbi.co.uk 0207 597 7000 Freedom Equity 376.35 396.16 0.26 -
Total Return B Acc 93.66 - -1.20 3.07 Hermes UK Small & Mid Cap Fund Class F Acc £ 1.60 1.60 0.01 0.00
Eq. Latin America AU Class - R - USD $ 272.32 - -1.04 0.00 Regulated Equinox Fund Mgmt (Guernsey) Limited (GSY) Fidelity PathFinder Freedom 1 Gross Acc (clean) £ 1.06 - 0.00 -
UK Equity B Acc 103.32 - 1.60 1.66 Regulated Corp Pens Mananged 207.38 207.38 -0.73 -
DSBI Japan Equity Fundamental Active I JPY ¥ 11218.12 11218.12 7.17 0.00 Hermes UK Small & Mid Cap Fund Class R Acc € 4.62 4.62 0.04 0.00
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.38 - 0.00 0.00 Baring Fund Managers Ltd (1200)F (UK) Fidelity PathFinder Freedom 2 Acc (clean) £ 1.04 - 0.00 -
UK Equity & Bond Income B Inc 227.61 - 2.27 5.01 Equinox Russian Opportunities Fund Limited $ 119.68 - 0.92 0.00 Corp Pens Equity 205.84 205.84 -1.15 -
Dealing and Enquiries 020 7214 1004 DSBI Japan Equity Fundamental Active I GBP £ 110.74 110.74 0.09 0.00 Hermes US All Cap Equity Class F Stg £ Acc £ 0.95 0.95 0.00 -
Fidelity PathFinder Freedom 1 Acc (clean) £ 1.05 - -0.01 -
Fund Information: www.barings.com Corp Pens Fixed Interest 300.51 300.51 -0.42 -
UK Equity Income B Inc 406.74 - 5.18 4.94 DSBI Japan Equity Fundamental Active A EUR € 106.35 111.67 0.06 0.00 Hermes US All Cap Equity Class R € Acc € 1.80 1.80 0.00 -
The Antares European Fund Limited Authorised Inv Funds Fidelity PathFinder Freedom 3 Acc (clean) £ 1.01 - -0.01 -
Other International UK Government Bond B Inc 47.45 - -0.23 1.98 Euronova Asset Management UK LLP (CYM) Corp Pens Index Linked 334.16 334.16 -2.94 -
Multi Asset A Acc ... C 148.10 - 0.00 1.51 Hermes US SMID Equity Fund Class F Acc £ 1.54 1.54 0.00 0.00
Regulated Fidelity PathFinder Freedom 4 Acc (clean) £ 0.99 - 0.00 -
AEF Ltd Usd (Est) $ 649.95 - -31.70 - Corp Pens Deposit 191.11 191.11 0.01 -
Multi Asset A Inc ... C 141.30 - 0.00 1.28 DAVIS Funds SICAV (LUX) Smaller Cos Cls One Shares (Est) € 33.69 - -0.84 0.00 Hermes US SMID Equity Fund Class R Acc € 3.16 3.16 0.01 0.00
Regulated Fidelity PathFinder Freedom 5 Acc (clean) £ 1.06 - -0.01 -
AEF Ltd Eur (Est) € 651.94 - -31.88 0.00 Charity Fund Capita Asset Services (UK) Corp Pens Protector 366.29 366.29 -0.66 -
Smaller Cos Cls Two Shares (Est) € 23.65 - -0.53 0.00
Enquiries 020 7214 1763 40 Dukes Place, London EC3A 7NH Davis Value A $ 35.61 - -0.94 0.00 Fidelity PathFinder Income 1 Income (clean) £ 1.00 - 0.00 4.08
Corp Pens UK Index Tracker £ 1.78 1.78 -0.01 -
Targeted Return Fund Acc 139.00 139.70 0.40 2.92 Order Desk and Enquiries: 0345 922 0044 Smaller Cos Cls Three Shares (Est) € 11.73 - -0.33 0.00 Hermes Property Unit Trust (UK)
Davis Global A $ 24.78 - -0.67 0.00 Fidelity PathFinder Income 1 Gross Income (clean) £ 1.00 - 0.00 5.08 Guardian Linked Life Assurance Ltd
Arisaig Partners Authorised Inv Funds Property & Other UK Unit Trusts
Targeted Return Fund Inc 106.40 107.00 0.20 2.97 Smaller Cos Cls Four Shares (Est) € 15.27 - -0.38 0.00
Other International Funds CF Heartwood Cautious B Acc X 124.91 - 0.11 0.15 Fidelity PathFinder Income 2 Income (clean) £ 1.01 - 0.01 3.64 Managed Acc £ 17.07 17.97 -0.06 - Property £ 5.85 6.23 0.08 3.10
Arisaig Africa Consumer Fund Limited $ 12.79 - -0.09 0.00
CF Heartwood Cautious Income B Inc X 107.12 - -0.15 2.45 Discretionary Unit Fund Mngrs (1000)F (UK) Fidelity PathFinder Income 2 gross £ 1.01 - 0.00 4.55 Equity Acc £ 30.21 31.80 -0.16 -
Arisaig Asia Consumer Fund Limited $ 59.19 - -0.95 0.00 1 Poultry, London EC2R 8JR 020 7 415 4130
Baring International Fd Mgrs (Ireland) (IRL) CF Heartwood Growth B Acc X 135.82 - 0.02 0.70 Fidelity PathFinder Income 2 Gross Income (clean) £ 1.01 - 0.00 4.52 Fixed Interest Acc £ 17.20 18.10 -0.02 - Hermes UK Residential Real Estate (UK)
Authorised Inv Funds
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 Property & Other UK Unit Trusts
Arisaig Global Emerging Markets Consumer UCITS € 10.93 - -0.04 0.00
FCA Recognised CF Heartwood Balanced Income B Inc X 106.77 - -0.01 3.04 Disc Inc 1582.88 1688.44 -8.07 0.00 Fidelity PathFinder Income 3 Income (clean) £ 1.01 - 0.00 4.18 International Acc £ 12.68 13.35 -0.02 -
VISTA UK Residential Real Estate £ 1.02 1.06 0.03 -
Arisaig Global Emerging Markets Consumer UCITS STG £ 10.64 - -0.08 0.00 ASEAN Frontiers A GBP Inc £ 108.48 - 1.32 0.58 Institutional OEIC Funds
CF Heartwood Balanced B Acc X 119.65 - 0.08 0.32 Do Accum 5964.43 6362.22 -30.42 0.00 International S-NA Acc £ 6.52 6.86 -0.01 -
Arisaig Latin America Consumer Fund $ 18.59 - -0.15 0.00 Asia Growth A GBP Inc H £ 43.84 - 0.56 0.00 America £ 3.87 - 0.05 0.52
CF Heartwood Defensive Multi Asset Fund B Accumulation 108.14 - 0.02 0.00 International S-PA Acc £ 3.93 4.14 -0.01 -
Eurobank Fund Management Company (Luxembourg) S.A. Emerging Markets £ 2.96 - 0.05 0.81 INDIA VALUE INVESTMENTS LIMITED (INVIL)
Australia A GBP Inc £ 66.56 - 1.28 1.82 www.invil.mu
CF Richmond Core X 161.07 - 0.13 0.00 Regulated International S-EU Acc £ 3.17 3.34 -0.01 -
Baring China Bond Fund $ 9.65 - 0.00 0.00 Europe £ 3.96 - 0.06 1.54 Other International Funds
CF Seneca Diversified Growth A ACC 208.55 - -0.17 1.49 (LF) Absolute Return € 1.30 - -0.01 0.00 Managed S-PR Acc £ 6.49 6.83 -0.02 -
NAV £ 8.08 - -0.06 0.00
Baring Emerging Markets Corporate Debt Fund $ 8.98 - 0.02 0.00 Fidelity Pre-Retirement Bond Fund £ 117.30 - -1.10 3.06
CF Seneca Diversified Growth B ACC 123.51 - -0.10 2.40 (LF) Eq Emerging Europe € 0.60 - -0.01 0.00 Fixed Interest S-IL Acc £ 6.50 6.84 0.00 -
Baring European Opportunities Fund Class A EUR Acc € 12.59 - 0.21 0.00 Global Focus £ 2.73 - 0.04 1.60
CF Seneca Diversified Growth N ACC 122.25 - -0.10 2.08 (LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Deposit Accum £ 4.44 4.67 0.00 -
Index Linked Bond £ 2.61 - 0.01 0.74
Intercapital Asset Management Ltd (HRV)
Baring Global Mining Fund - Class A GBP Inc £ 3.17 - 0.06 0.65 Dodge & Cox Worldwide Funds (IRL) (LF) Eq Mena Fund € 11.42 - 0.11 0.00 Guardian Pensions Management Ltd Masarykova ul. 1, 10000, Zagreb, Croatia
CF Seneca Diversified Income A INC 84.39 - -0.06 6.23
6 Duke Street,St.James,London SW1Y 6BN www.icam.hr, Tel; +385 1 4825 868
Artemis Fund Managers Ltd (1200)F (UK) Dynamic Emerging Markets A GBP Acc F £ 8.27 - 0.05 0.00 Index Linked Bond Gross £ 3.16 - 0.01 0.74 Pens. Managed Acc. £ 22.19 23.36 -0.08 -
CF Seneca Diversified Income B INC 100.19 - -0.08 6.13 www.dodgeandcox.worldwide.com 020 3713 7664 (LF) Greek Government Bond € 17.08 - -0.34 - Other International Funds
57 St. James's Street, London SW1A 1LD 0800 092 2051
Authorised Inv Funds Eastern Europe A GBP Inc £ 36.79 - 0.66 1.84 FCA Recognised Index-Linked Bond Fund Gross Inc £ 12.29 - 0.02 0.74 Pens. Equity Acc. £ 31.75 33.43 -0.18 -
CF Seneca Diversified Income N INC 99.19 - -0.08 6.13 (LF) Greek Corporate Bond € 11.76 - -0.09 - Capital One Bond Fund (Ex-YU) HRK 203.36 - -0.01 -
Dodge & Cox Worldwide Funds plc - Global Bond Fund
Artemis Capital R ACC 1208.48 1276.78 20.32 1.24 Emerging Mkt Debt LC A GBP Hedged Inc £ 6.72 - 0.03 6.72 Japan £ 2.02 - 0.02 0.79
Investment Adviser - DSM Capital Partners EUR Accumulating Class € 11.42 - -0.13 0.00 (LF) FOF Dynamic Fixed Inc € 11.62 - -0.02 0.00 Capital Two Equity Fund (Ex-YU) HRK 87.19 - -0.78 -
Artemis European Growth R Acc 236.54 249.61 3.79 1.17 Emerging Opportunities A GBP Inc H £ 17.83 - -0.15 0.00 The Westchester X $ 25.34 - 0.00 0.00 Long Bond £ 0.50 - -0.01 2.91 HPB Assurance Ltd
EUR Accumulating Class (H) € 8.92 - -0.05 0.00 (LF) FOF Real Estate € 15.80 - 0.04 0.00
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
Artemis European Opps R Acc 72.82 76.85 1.08 0.80 Glb Emerging Markets A GBP Inc H £ 17.25 - 0.28 0.00 The Westchester Class 1 GBP Acc £ 19.22 - 0.02 0.00 Long Bond Gross £ 0.83 - -0.01 2.85
EUR Distributing Class € 10.82 - -0.12 3.62 International Insurances Intrinsic Value Investors (IVI) LLP (IRL)
Artemis Global Emg Mkts I GBP Acc 77.27 - 1.48 - The Westchester Class 2 GBP Acc £ 19.27 - 0.02 0.00 Long Bond Fund Gross Inc £ 11.24 - -0.11 2.91 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Glb Resources A GBP Inc H £ 9.94 - 0.12 0.38 Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00
EUR Distributing Class (H) € 8.44 - -0.05 3.71 FCA Recognised
Artemis Global Emg Mkts I GBP Dist 77.27 - 1.47 - Investment Adviser - Morant Wright Management Limited Pacific (Ex Japan) £ 3.32 - 0.10 1.85
High Yield Bond A GBP Hedged Inc H £ 5.96 - 0.00 7.21 Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00 IVI European Fund EUR € 16.29 - -0.05 0.00
GBP Distributing Class £ 10.08 - 0.05 3.57
CF Morant Wright Japan A X 272.33 - -0.89 0.00
Artemis Global Energy R Acc 19.08 20.29 0.24 0.00 Hong Kong China A GBP Inc £ 539.32 - 14.28 0.58 Pan European £ 2.52 - 0.04 2.04
GBP Distributing Class (H) £ 8.52 - -0.05 3.71 IVI European Fund GBP £ 16.72 - -0.13 0.67
CF Morant Wright Japan A Inc X 268.33 - -0.87 0.00
Artemis Global Growth R Acc 174.73 184.38 3.16 0.81 India Fund - Class A GBP Inc £ 13.86 - 0.23 0.00 Reduced Duration UK Corporate Bond £ 10.30 - -0.01 3.62 Hargreaves Lansdown Fd Mgrs (1100)F (UK)
USD Accumulating Class $ 8.99 - -0.06 0.00
CF Morant Wright Japan B X 289.98 - -0.93 0.51 PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT
Artemis Global Income R Acc 91.65 96.80 1.38 4.12 Latin America A USD Inc H $ 22.59 - 0.23 0.24 Dodge & Cox Worldwide Funds plc-Global Stock Fund Reduced Duration UK Corporate Bond Gross £ 10.49 - -0.01 3.62
FIL Investment Services (UK) Limited (1200)F (UK) Enquiries 0117 90090000
CF Morant Wright Japan B Inc X 273.45 - -0.88 0.54
Artemis Global Income R Inc 73.80 77.94 1.11 4.29 USD Accumulating Share Class $ 13.90 - -0.43 0.00 130, Tonbridge Rd, Tonbridge TN11 9DZ Reduced Duration UK Corporate Bond Inc £ 9.61 - -0.02 3.65 www.hl.co.uk
MENA A GBP Inc F * £ 10.99 - 0.23 0.64
CF Morant Wright Nippon Yield ACC A X 277.52 - -1.52 2.11 Callfree: Private Clients 0800 414161 Authorised Inv Funds
Artemis Global select R Acc 71.20 75.13 1.18 0.00 GBP Accumulating Share Class £ 16.04 - -0.32 0.00 Broker Dealings: 0800 414 181 Reduced Duration UK Corp Bond Gross Inc £ 9.62 - -0.01 3.65 Hargreaves Lansdown Funds
CF Morant Wright Nippon Yield ACC B X 287.97 - -1.58 2.10 Authorised Inv Funds Unit Trust
Artemis High Income R Inc 75.79 80.77 0.02 5.90 GBP Distributing Share class £ 11.67 - -0.23 0.98 Select Emerging Markets Equities £ 1.08 - 0.03 1.66
Baring International Fd Mgrs (Ireland) (IRL) Unit Trust
CF Morant Wright Nippon Yield Fund A Inc X 241.24 - -1.32 2.15 HL Multi-Manager Special Situations Trust A Acc 258.08 271.66 -2.65 0.52
Regulated EUR Accumulating Share Class € 19.12 - -0.69 0.00 Cash Accum Units 186.44 186.44 0.00 0.00
Artemis Income R Inc 193.26 204.87 2.64 4.26 Select European Eqts £ 1.73 - 0.01 1.88
Invesco Fund Managers Ltd (UK)
China A-Share A GBP Inc £ 5.70 - 0.14 0.00 CF Morant Wright Nippon Yield Fund B Inc X 250.40 - -1.37 2.14 HL Multi-Manager Special Situations Trust M Acc 258.06 271.64 -2.65 0.42
Dodge & Cox Worldwide Funds plc-International Stock Fund Cash Fund £ 1.00 1.00 0.00 0.15 Perptual Park, Henley-On-Thames, Oxon, RG9 1HH
Artemis Income R Acc 329.57 349.38 4.49 4.14 Select Global Equities £ 2.90 - 0.04 1.10
HL Multi-Manager Income & Growth Trust A Acc 156.22 164.38 -1.31 3.83 Dealing: 0800 085 8571
USD Accumulating Share Class $ 11.72 - -0.39 0.00
Artemis Monthly Dist R Inc 60.71 64.46 0.20 4.51 Gross Accum Cash £ 1.28 1.28 0.00 0.00 South East Asia £ 3.40 - 0.07 1.99 Investor Services: 0800 085 8677
Barings (Luxembourg) (LUX) Cavendish Asset Management Limited (1200)F (UK) EUR Accumulating Share Class € 12.64 - -0.49 0.00 HL Multi-Manager Income & Growth Trust M Acc 156.23 164.37 -1.31 1.79 www.invescoperpetual.co.uk
Artemis Pan-Euro Abs Ret GBP 110.13 - 0.63 - FCA Recognised MoneyBuilder Cash ISA £ 1.00 1.00 0.00 0.15 Sterling Core Plus Bond Gr Accum £ 2.07 - -0.01 3.46 Authorised Inv Funds
Chelsea House, Westgate, London W5 1DR Dodge & Cox Worldwide Funds plc-U.S. Stock Fund HL Multi-Manager Income & Growth Trust A Inc 93.38 98.26 -0.78 3.91 INVESCO PERPETUAL Funds
Russia A GBP Inc F £ 21.65 - -0.05 0.00 IFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502 MoneyBuilder Global £ 2.49 2.49 0.01 0.19
Artemis Strategic Assets R Acc 70.71 74.91 0.71 0.00 USD Accumulating Share Class $ 16.11 - -0.44 0.00 Sterling Core Plus Bond Inc £ 1.33 - -0.01 3.56
Authorised Inv Funds HL Multi-Manager Income & Growth Trust M Inc 93.38 98.25 -0.78 1.81 Asian Acc ♦ F 404.91 - 4.83 0.60
OEIC Funds
Artemis Strategic Bond R M Acc 82.18 87.26 -0.18 4.05 Cavendish Opportunities Fund B Class 1006.00 - 2.00 1.66 GBP Accumulating Share Class £ 17.58 - -0.28 0.00 UK £ 3.43 - 0.05 2.23
American £ 25.90 - 0.31 0.00 HL Multi-Manager Balanced Managed Trust A Acc 177.06 186.21 -1.32 1.10 Asian Inc ♦ F 361.70 - 4.31 0.60
Artemis Strategic Bond R M Inc 52.72 55.98 -0.12 4.13 BlackRock (JER) Cavendish Opportunities Fund A Class 999.90 - 1.90 0.82 GBP Distributing Share Class £ 11.18 - -0.18 0.61 UK Aggreg Bond Gr Accum £ 1.81 - -0.01 4.63
Regulated American Special Sits £ 11.33 - 0.13 0.00 HL Multi-Manager Balanced Managed Trust M Acc 177.06 186.21 -1.32 0.71 Asian Equity Income Acc ♦ F 52.87 - 0.66 4.92
Artemis Strategic Bond R Q Acc 82.27 87.35 -0.17 4.13 Cavendish Opportunities Fund C Acc 1048.00xd - 3.00 1.48 EUR Accumulating Share Class € 19.15 - -0.61 0.00 UK Aggregate Bond Inc £ 1.20 - -0.01 3.18
BlackRock UK Property £ 41.67 - 0.46 3.26
28
Fund Bid Offer +/- Yield
Asian Equity Income Inc ♦ F 43.96 - 0.55 5.08
Balanced Risk 6 Acc 50.08 - 0.10 0.00
Balanced Risk 8 Acc 50.66 - 0.14 0.00
Balanced Risk 10 Acc 51.20 - 0.18 0.13
Childrens Acc ♦ F 366.47 - 6.04 1.81
Corporate Bd Acc (Gross) ♦ F 206.29 - -0.47 3.52
Corporate Bd Inc (Gross) ♦ F 87.66 - -0.20 3.62
Corporate Bond Acc ♦ F 183.37 - -0.42 3.54
Corporate Bond Inc ♦ F 87.47 - -0.20 3.62
Distribution Acc ♦ F 105.84 - 0.44 4.59
Distribution Acc (Gross) ♦ F 121.36 - 0.51 4.56
Distribution Inc ♦ F 61.30 - 0.26 4.68
Distribution Inc (Gross) ♦ F 61.32 - 0.26 4.68
Emerging European Acc ♦ F 30.12 - 0.62 3.04
Emerging European Inc ♦ F 27.47 - 0.57 3.12
European Equity Acc ♦ F 790.88 - 11.60 1.53
European Equity Inc ♦ F 659.90 - 9.67 1.55
European Equity Income Acc ♦ F 69.32 - 1.12 3.48
European Equity Income Inc ♦ F 52.70 - 0.85 3.56
European High Income Acc ♦ F 79.20 - 0.41 3.47
European High Income Inc ♦ F 57.23 - 0.30 3.53
European Opportunities Inc ♦ F 79.36 - 1.43 1.09
European Opportunities Acc ♦ F 82.09 - 1.48 1.08
European Smlr Cos Acc ♦ F 182.20 - 2.98 0.22
Global Bd Acc (Gross) ♦ F 133.89 - 0.06 1.16
Global Bd Inc (Gross) ♦ F 82.44 - 0.04 1.17
Global Bond Acc ♦ F 125.76 - 0.06 1.17
Global Bond Inc ♦ F 82.38 - 0.04 1.17
Glbl Distribution Acc 50.91 - 0.12 5.06
Glbl Distribution Acc (Gross) 51.66 - 0.13 5.06
Glbl Distribution Inc 48.09 - 0.11 5.08
Glbl Distribution Inc (Gross) 48.10 - 0.11 5.08
Global Emerging Markets Acc ♦ F 218.62 - 2.35 1.00
Global Emerging Markets Inc ♦ F 197.15 - 2.12 1.01
Global Equity (acc) ♦ F 444.44 - 6.75 0.64
Global Equity (inc) ♦ F 402.91 - 6.12 0.64
Global Equity Income Acc ♦ F 116.59 - 1.70 3.60
Global Equity Income Inc ♦ F 94.69 - 1.38 3.71
Gbl Financial Capital Acc 84.86 - 0.00 4.29
Gbl Financial Capital Inc 71.41 - 0.00 4.42
Gbl Financial Cap Acc Gross 88.93 - 0.00 4.80
Gbl Financial Cap Inc Gross 71.67 - 0.00 4.98
Global Opportunities Acc ♦ F 88.29 - 1.35 0.48
Global Smaller Cos Acc ♦ F 1602.17 - 15.53 0.20
Global Smaller Cos Inc ♦ F 1529.89 - 14.84 0.20
Global Targeted Rets Acc 56.24 - -0.08 0.32
High Income Acc ♦ F 795.93 - 6.04 3.32
High Income Inc ♦ F 433.02 - 3.29 3.40
High Yield Fund Acc 102.77 - -0.13 5.30
High Yield Fund Acc (Gross) 120.15 - -0.15 5.27
High Yield Fund Inc 40.66 - -0.05 5.44
High Yield Fund Inc (Gross) 40.78 - -0.05 5.44
Hong Kong & China Acc ♦ F 442.63 - 12.65 0.77
Income & Growth Acc ♦ F 906.96 - 9.93 4.07
Income & Growth Inc ♦ F 387.06 - 4.24 4.19
Income Acc ♦ F 3055.00 - 23.75 3.17
Income Inc ♦ F 1699.02 - 13.21 3.24
Japan Acc ♦ F 310.04 - -1.36 0.29
Japanese Smlr Cos Acc ♦ F 66.14 - -0.08 0.00
Latin America Acc ♦ F 89.48 - 0.14 1.22
Latin America Inc ♦ F 74.48 - 0.11 1.23
Managed Growth Acc ♦ F 151.40 - 1.54 0.71
Managed Growth Inc ♦ F 126.04 - 1.28 0.72
Managed Income Acc ♦ F 153.08 - 1.22 2.95
Managed Income Inc ♦ F 93.28 - 0.74 3.00
Money Acc ♦ F 90.23 - 0.00 0.21
Money Acc (Gross) ♦ F 95.37 - 0.00 0.21
Monthly Income Plus Acc ♦ F 289.76 - 0.29 4.94
Monthly Income Plus Acc (Gross) ♦ F 341.34 - 0.35 4.92
Monthly Income Plus Inc ♦ F 106.06 - 0.11 5.05
Monthly Income Plus Inc (Gross) ♦ F 106.23 - 0.11 5.05
Pacific Acc ♦ F 931.25 - 5.04 0.40
Pacific Inc ♦ F 852.19 - 4.61 0.41
Tactical Bond Acc ♦ F 68.63 - 0.01 0.82
Tactical Bond Inc ♦ F 59.50 - 0.00 0.82
Tactical Bond Acc (Gross) ♦ F 71.22 - 0.01 0.82
Tactical Bond Inc (Gross) ♦ F 59.57 - 0.01 0.82
UK Focus Acc F 182.34 - 3.17 1.86
UK Focus Inc F 148.98 - 2.59 1.89
UK Growth Acc ♦ F 501.52 - 8.60 1.89
UK Growth Inc ♦ F 311.56 - 5.35 1.92
UK Smaller Cos Equity Acc ♦ F 844.23 - 0.98 0.76
UK Smaller Cos Equity Inc ♦ F 646.50 - 0.75 0.76
UK Strategic Income Acc ♦ F 179.83 - 1.44 3.54
UK Strategic Income Inc ♦ F 132.49 - 1.06 3.63
US Equity Acc ♦ F 502.97 - 8.35 0.00
Invesco Perpetual Funds (No Trail)
Asian (No Trail) Acc ♦ F 169.84 - 2.02 1.18
Asian (No Trail) Inc ♦ F 152.78 - 1.82 1.19
Asian Equity Income (No Trail) Acc ♦ F 108.33 - 1.35 4.91
Asian Equity Income (No Trail) Inc 90.08 - 1.12 5.07
Balanced Risk 6 No Trail Acc 102.11 - 0.21 0.16
Balanced Risk 8 No Trail Acc 103.26 - 0.29 0.44
Balanced Risk 10 No Trail Acc 104.38 - 0.37 0.60
Corporate Bond (No Trail) Acc ♦ F 163.25 - -0.37 3.79
Corporate Bond (No Trail) Inc ♦ F 115.64 - -0.27 3.87
Distribution (No Trail) Acc ♦ F 162.53 - 0.68 4.57
Distribution (No Trail) Inc ♦ F 107.16 - 0.45 4.66
Emerging European (No Trail) Acc ♦ F 62.73 - 1.29 3.64
Emerging European (No Trail) Inc ♦ F 55.43 - 1.14 3.76
European Equity (No Trail) Acc ♦ F 139.78 - 2.05 2.07
European Equity (No Trail) Inc ♦ F 115.84 - 1.70 2.12
European Equity Income (No Trail) Acc ♦ F 142.93 - 2.31 3.47
European Equity Income (No Trail) Inc ♦ F 108.69 - 1.75 3.56
European High Income (No Trail) Acc ♦ F 163.31 - 0.85 3.46
European High Income (No Trail) Inc ♦ F 118.00 - 0.62 3.52
European Opportunities (No Trail) Acc ♦ F 172.02 - 3.11 1.60
European Opportunities (No Trail) Inc ♦ F 160.82 - 2.91 1.62
European Smaller Companies (No Trail) Acc ♦ F 223.97 - 3.67 0.71
Global Balanced Index (No Trail) Acc ♦ F 151.71 - 1.51 2.04
Global Bond (No Trail) Acc ♦ F 141.38 - 0.07 1.41
Global Bond (No Trail) Inc ♦ F 127.82 - 0.06 1.42
Glbl Distribution Acc (No Trail) 102.67 - 0.25 3.97
Glbl Distribution Inc (No Trail) 96.98 - 0.23 4.04
Gbl Emerging Markets (No Trail) Acc ♦ F 143.42 - 1.54 1.60
Gbl Emerging Markets (No Trail) Inc ♦ F 133.27 - 1.44 1.63
Global Equity (No Trail) acc ♦ F 196.37 - 2.99 1.19
Global Equity (No Trail) inc ♦ F 181.69 - 2.76 1.21
Global Equity Income (No Trail ) Acc ♦ F 241.41 - 3.52 3.59
Global Equity Income (No Trail) Inc ♦ F 196.07 - 2.86 3.70
Global ex UK Core Equity Index ( No Trail) Acc ♦ F 168.77 - 2.68 1.54
Global ex UK Enhanced Index ( No Trail) Acc ♦ F 195.34 - 2.99 2.04
Gbl Fin Cap No Trail Acc 173.10 - 0.00 4.28
Gbl Fin Cap No Trail Inc 145.68 - -0.01 4.41
Global Opportunities (No Trail) Acc ♦ F 227.40 - 3.46 1.03
Global Smaller Companies (No Trail) Acc ♦ F 234.29 - 2.28 0.75
Fund Bid Offer +/- Yield
Global Smaller Companies (No Trail) Inc ♦ F 223.87 - 2.18 0.75
Global Targeted Rets (No Trail) Acc 113.71 - -0.16 0.85
High Income (No Trail) Acc ♦ F 170.35 - 1.29 3.30
High Income (No Trail) Inc ♦ F 123.52 - 0.93 3.38
High Yield Fund (No Trail) Acc 213.17 - -0.27 5.28
High Yield Fund (No Trail) Inc 157.11 - -0.20 5.43
Hong Kong & China (No Trail) Acc ♦ F 175.70 - 5.02 1.34
Income & Growth (No Trail) Acc ♦ F 213.71 - 2.34 4.05
Income & Growth (No Trail) Inc ♦ F 166.42 - 1.82 4.17
Income (No Trail) Acc ♦ F 168.03 - 1.31 3.16
Income (No Trail) Inc ♦ F 123.02 - 0.96 3.23
Japan (No Trail) Acc ♦ F 147.46 - -0.64 0.83
Japanese Smaller Companies (No Trail) Acc ♦ F 168.62 - -0.21 0.00
Latin American (No Trail) Acc ♦ F 86.60 - 0.14 1.97
Latin American (No Trail) Inc ♦ F 77.77 - 0.12 2.01
Managed Growth (No Trail) Acc ♦ F 183.71 - 1.86 1.23
Managed Growth (No Trail) Inc ♦ F 168.94 - 1.71 1.25
Managed Income (No Trail) Acc ♦ F 183.60 - 1.46 2.93
Managed Income (No Trail) Inc ♦ F 150.05 - 1.19 2.99
Monthly Income Plus (No Trail) Acc ♦ F 167.28 - 0.16 4.93
Monthly Income Plus (No Trail) Inc ♦ F 104.63 - 0.11 5.04
Pacific (No Trail) Acc ♦ F 172.92 - 0.94 0.92
Pacific (No Trail) Inc ♦ F 162.68 - 0.89 1.03
Tactical Bond (No Trail) Acc ♦ F 140.56 - 0.01 1.32
Tactical Bond (No Trail) Inc ♦ F 119.16 - 0.00 1.33
UK Focus (No Trail) Acc F 150.16 - 2.62 2.41
UK Focus (No Trail) Inc F 123.28 - 2.15 2.46
UK Enhanced Index (No Trail) Acc ♦ F 374.92 - 7.66 3.66
UK Enhanced Index (No Trail) Inc ♦ F 233.51 - 4.77 3.75
UK Growth (No Trail) Acc ♦ F 132.78 - 2.28 2.42
UK Growth (No Trail) Inc ♦ F 105.81 - 1.82 2.47
UK Smaller Companies Equity (No Trail) Acc ♦ F 275.11 - 0.32 1.23
UK Smaller Companies Equity (No Trail) Inc ♦ F 253.80 - 0.30 1.25
UK Strategic Income (No Trail) Acc ♦ F 714.99 - 5.73 3.54
UK Strategic Income (No Trail) Inc ♦ F 526.79 - 4.22 3.63
US Equity (No Trail) Acc ♦ F 209.65 - 3.49 0.11
Invesco (LUX)
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
FCA Recognised
Invesco Management SA
Invesco Active Multi-Sector Credit Fund A € 2.83 - 0.00 0.00
Invesco Asia Balanced A dist $ 13.27 - 0.10 3.82
Invesco Asia Consumer Demand Fund A income $ 11.38 - 0.20 0.24
Invesco Asia Infrastructure (A) $ 11.26 - 0.20 0.78
Invesco Asia Opportunities Equity A $ 94.41 - 1.97 0.00
Invesco Balanced Risk Allocation Fund A € 14.09 - 0.04 0.00
Invesco Emerging Europe Equity Fund A $ 6.60 - 0.13 0.00
Invesco Emerging Local Currencies Debt A Inc $ 6.38 - 0.03 7.11
Invesco Emerging Mkt Quant.Eq. A $ 8.05 - 0.15 0.00
Invesco Energy A $ 13.70 - 0.17 0.00
Invesco Euro Corporate Bond Fund (A) € 16.77 - -0.02 0.00
Invesco Euro Inflation Linked Bond A € 15.41 - 0.00 0.00
Invesco Euro Reserve A € 322.66 - 0.00 0.00
Invesco Euro Bond A € 7.07 - -0.01 0.00
Invesco European Growth Equity A € 22.72 - 0.31 0.00
Invesco Global Absolute Return Fund A Class € 11.75 - 0.02 0.00
Invesco Global Bond A Inc $ 5.43 - 0.00 0.75
Invesco Global Conservative Fund 90 (EUR) A € 11.77 - -0.01 0.00
Invesco Global Equity Income Fund A $ 54.44 - 0.80 0.00
Invesco Global Inc Real Estate Sec A dist $ 8.74 - 0.02 2.24
Invesco Global Inv Grd Corp Bond A Dist $ 11.76 - -0.02 3.04
Invesco Global Leisure A $ 33.30 - 0.60 0.00
Invesco Global Smaller Comp Eq Fd A $ 52.43 - 0.60 0.00
Invesco Global Structured Equity A $ 43.64 - 0.62 0.74
Invesco Global Total Ret.(EUR) Bond Fund A € 12.96 - -0.01 0.00
Invesco Gold & Precious Metals A $ 3.21 - -0.02 0.00
Invesco Greater China Equity A $ 39.55 - 0.81 0.00
Invesco India Equity A $ 47.47 - 0.69 0.00
Invesco Japanese Equity Adv Fd A ¥ 3497.00 - -8.00 0.00
Invesco Japanese Value Eq Fd A ¥ 1171.00 - 0.00 0.00
Invesco Latin American Equity A $ 4.92 - 0.00 0.00
Invesco Nippon Small/Mid Cap Equity A ¥ 942.00 - 3.00 0.00
Invesco Pan European Equity A EUR Cap NAV € 17.21 - 0.34 0.00
Invesco Pan European High Income Fd A € 13.31 - 0.02 2.48
Invesco Pan European Small Cap Equity A € 20.81 - 0.32 0.00
Invesco Pan European Structured Equity A € 16.16 - 0.30 0.00
Invesco UK Eqty Income A £ 30.55 - 0.24 0.00
Invesco UK Investment Grade Bond A £ 0.98 - 0.00 2.89
Invesco US Structured Equity A $ 19.77 - 0.33 0.00
Invesco US Value Eq Fd A $ 28.03 - 0.43 0.00
Invesco USD Reserve A $ 87.02 - 0.00 0.00
Invesco Global Asset Management Ltd (IRL)
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
FCA Recognised
Invesco Stlg Bd A QD F £ 2.58 - 0.00 3.34
Invesco Asian Equity A $ 5.56 - 0.06 0.53
Invesco ASEAN Equity A $ 82.60 - 1.03 0.29
Invesco Bond A $ 26.65 - -0.06 1.99
Invesco Continental Eurp Small Cap Eqty A $ 184.66 - 1.43 0.00
Invesco Emerging Markets Equity A $ 31.12 - 0.41 0.00
Invesco Emerging Markets Bond A $ 20.06 - 0.00 4.66
Invesco Continental European Equity A € 7.93 - 0.14 0.20
Invesco Gilt A £ 15.07 - -0.07 1.39
Invesco Global Small Cap Equity A NAV $ 108.66 - 1.01 0.00
Invesco Global High Income A NAV $ 11.47 - 0.00 6.06
Invesco Gbl R/Est Secs A GBP F F £ 7.74 - 0.03 0.88
Invesco Global Health Care A $ 116.32 - 1.78 0.00
Invesco Global Select Equity A $ 11.73 - 0.17 0.00
Invesco Jap Eqty Core A $ 1.70 - -0.01 0.00
Invesco Japanese Equity A $ 17.76 - -0.10 0.00
Invesco Korean Equity A $ 34.09 - 0.89 0.00
Invesco PRC Equity A $ 44.77 - 1.06 0.00
Invesco Pacific Equity A $ 42.81 - 0.19 0.07
Invesco Global Technology A $ 14.54 - 0.24 0.00
Invesco UK Eqty A £ 7.40 - 0.12 1.38
Invest AD
Client services: +971 2 692 6101 clientservices@InvestAD.com
Other International Funds
Invest AD - Iraq Opportunity Fund $ 59.36 - -0.97 0.00
Invest AD - Emerging Africa Fund $ 826.78 - -4.02 0.00
Invest AD - GCC Focus Fund $ 1190.53 - -52.10 0.00
JPMorgan Asset Mgmt (1200)F (UK)
60 Victoria Embankment, London EC4Y 0JP
Brokerline: 0800 727 770, Clients: 0800 20 40 20
Authorised Inv Funds
JPM Retail OEIC (A class unless stated)
America Equity Acc 58.17 - 0.00 0.00
America Equity Inc 58.16 - -0.01 0.00
Asia Acc 113.00 - 2.00 0.35
Asset Management
Asia Inc 62.73 - 1.12 0.34
Fund Bid Offer +/- Yield
Cautious Managed Rt Acc 68.01 - 0.23 0.47
Cautious Managed Rt Inc 59.82 - 0.20 0.47
Diversified Real Ret Acc 49.43 - 0.15 1.09
Diversified Real Ret Inc 48.02 - 0.15 1.10
Emerging Mkts Acc 124.00 - 1.40 0.84
Emerging Mkts Inc 53.35 - 0.63 0.85
Emrg Eur Eq Acc 121.80 - 2.00 3.03
Emrg Eur Eq Inc 28.95 - 0.48 2.98
Emrg Mkts Inc Acc... C 43.33 - 0.38 5.75
Emrg Mkts Inc Inc... C 37.80 - 0.33 5.92
Europe Acc 1026.00 - 19.00 1.54
Europe Inc 59.05 - 1.06 1.54
Eur Dynamic exUK Acc 156.70 - 3.20 0.85
Eur Dynamic exUK £ hdg Acc 172.60 - 4.00 0.78
Eur Dynamic exUK Inc 71.95 - 1.48 0.85
Eur Smaller Cos Acc 500.60 - 9.50 0.03
Eur Smaller Cos Inc 65.10 - 1.24 0.02
Fusion Balanced Acc 53.64 - -0.02 0.48
Fusion Balanced Inc 53.37 - -0.49 0.48
Fusion Conservative Acc 53.16 - -0.02 0.67
Fusion Conservative Inc 52.62 - -0.50 0.69
Fusion Growth Acc 54.61 - 0.06 0.49
Fusion Growth Inc 54.61 - 0.07 0.49
Fusion Growth + Acc 56.83 - -0.07 0.49
Fusion Growth + Inc 56.83 - -0.08 0.49
Fusion Income Acc...C 53.22 - 0.00 2.39
Fusion Income Inc...C 50.24 - -0.05 2.43
Global Allocation Acc 50.53 - 0.14 0.96
Global Allocation Inc 49.75 - 0.13 0.96
Global Bond exUK Acc 253.00 - -0.20 0.74
Global Bond exUK Inc 199.00 - -0.10 0.74
Global Bond Opport. Acc 47.80 - -0.02 2.95
Global Bond Opport. Inc 46.68 - -0.02 3.02
Global Eq Income £ hdg Acc... C 64.02 - 0.52 3.40
Global Eq Income £ hdg Inc ... C 45.81 - 0.37 3.48
Global Eq Income Acc... C 69.97 - 0.49 3.25
Global Eq Income Inc ... C 60.62 - 0.43 3.31
Global Financials Acc 670.80 - 6.10 0.94
Global Financials Inc 38.15 - 0.34 0.95
Global High Yield Bd Mth Inc C 33.65 - 0.01 7.49
Global High Yield Bd Acc C 89.87 - 0.01 7.42
Global High Yield Bd Inc C 33.95xd - 0.00 7.24
Global Property Secs Acc 54.77 - 0.18 0.62
Global Property Secs Inc 47.27 - 0.15 0.61
Global Unconstrained Eq. Acc 946.30 - 4.50 0.16
Global Unconstrained Eq. Inc 70.33 - 0.33 0.15
Income Acc ... C 48.04 - -0.01 7.51
Income Inc ... C 44.27 - -0.01 7.64
Japan Acc 292.20 - -2.50 0.00
Japan Inc 70.34 - -0.61 0.00
Multi-Asset Inc Mth Inc ... C 60.50 - 0.24 3.80
Multi-Asset Inc Acc... C 81.06 - 0.33 3.79
Multi-Asset Inc Inc... C 60.85 - 0.25 3.89
Multi-Asset Macro Acc 66.90 - -0.07 0.00
Multi-Asset Macro Inc 66.90 - -0.07 0.00
Multi-Manager Growth Acc 690.60 - 4.80 0.49
Multi-Manager Growth Inc 644.50 - 4.40 0.49
Natural Resources Acc 281.80 - 2.80 0.15
Natural Resources Inc 19.95 - 0.19 0.15
Portfolio Acc 191.10 - 2.70 0.72
Sterling Corporate Bond Acc 82.47 - -0.44 2.31
Sterling Corporate Bond Inc 51.55 - -0.28 2.31
Strategic Bond Acc 67.52 - 0.00 3.27
Strategic Bond Inc 56.05 - 0.00 3.27
UK Dynamic Acc 152.00 - 2.50 1.58
UK Dynamic Inc 124.30 - 2.00 1.59
UK Eq & Bond Inc Acc ... C 135.90 - 1.10 3.52
UK Eq & Bond Inc Inc ... C 79.06 - 0.64 3.60
UK Equity Blue Chip Acc 62.01 - 0.99 2.31
UK Equity Blue Chip Inc 51.91 - 0.83 2.35
UK Equity Core Acc 264.30 - 3.90 3.29
UK Equity Core Inc 49.85 - 0.74 3.29
UK Equity Growth Acc 107.40 - 1.60 1.24
UK Equity Growth Inc 100.20 - 1.49 1.26
UK Higher Inc Acc ... C 858.60 - 10.80 4.42
UK Higher Inc Inc ... C 499.00 - 6.20 4.56
UK Smaller Cos Acc 371.60 - 0.00 0.28
UK Smaller Cos Inc 71.96 - 0.00 0.28
UK Strategic Eq Inc Acc ... C 141.40 - 2.00 4.06
UK Strategic Eq Inc Inc ... C 91.47 - 1.29 4.15
US Acc 690.50 - 0.20 0.00
US Inc 95.57 - 0.03 0.00
US Equity Income Acc ... C 117.90 - 0.00 2.20
US Equity Income £ hdg Inc ... C 91.00 - -0.01 2.42
US Equity Income Inc ... C 100.10 - 0.00 2.22
US Select Acc 106.80 - 0.00 0.00
US Select Inc 105.40 - 0.00 0.00
US Smaller Cos Acc 337.80 - 0.00 0.00
US Smaller Cos Inc 88.52 - -0.01 0.00
JPMorgan Charity Funds (UK)
60 Victoria Embankment, London EC4Y 0JP 020 7742 9175
Property & Other UK Unit Trusts
UK Equity Fund for Charities I...C £ 2.623763 2.634508 1.612456 3.99
Bond Fund for Charities £ 1.333039 1.339370 0.321732 3.56
GAM
funds@gam.com, www.jbfundnet.com
Regulated
Ms EF Special Val. EUR/A € 126.63 - -0.23 1.15
Strategy Balanced-CHF/B SFr 143.03 - 0.03 0.00
Strategy Balanced-EUR € 147.47 - -0.02 0.00
Strategy Balanced-USD/B $ 123.28 - -0.18 0.00
Strategy Growth-CHF/B SFr 86.48 - 0.09 0.00
Strategy Growth-EUR € 108.24 - 0.07 0.00
Strategy Inc-CHF/B SFr 116.19 - 0.06 0.00
Strategy Inc-EUR/B € 155.32 - 0.04 0.00
Strategy Inc-USD/B $ 142.43 - -0.09 0.00
Kames Capital ICVC (UK)
Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA
0800 45 44 22 www.kamescapital.com
Authorised Funds
Diversified Income B Acc 109.51 - 0.35 0.00
Diversified Income B Inc 99.41 - 0.31 0.00
Diversified Growth B Acc £ 1.34 - 0.00 3.28
Ethical Cautious Managed B Acc £ 1.19 - 0.00 2.29
Ethical Cautious Managed B Inc £ 1.13 - 0.01 2.32
Ethical Corporate Bond B Acc £ 1.70 - -0.01 3.70
Ethical Corporate Bond B Inc £ 0.99 - -0.01 3.77
Ethical Equity B Acc £ 1.92 - 0.03 2.08
High Yield Bond B Acc £ 2.35 - 0.00 5.16
FINANCIAL TIMES Wednesday 20 January 2016
MANAGED FUNDS SERVICE
Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield
High Yield Bond B Inc £ 0.93 - 0.00 5.28 Optimal Income Fund 138.21 142.48 -0.16 2.64 MFM Slater Recovery 173.57 184.16 0.75 0.23 Odey Absolute Return Focus Fund $ 100.00 - - -
Investment Grade Bond B Acc 158.92 - -0.57 1.50 Recovery Fund Limited 'A' Participating Shares 9195.25 9578.39 119.59 0.53 NatWest (2230)F (UK) Odey Allegra European EUR O € 246.87 - -0.71 0.00
PO Box 23873, Edinburgh EH7 5WJ**
Investment Grade Bond B Inc £ 1.16 - 0.00 3.58 Recovery Fund Limited 'I' Participating Shares 9177.01 9269.71 121.71 1.43 Marlborough International Management Limited (GSY) Enquiries: 0800 085 5588 Odey Allegra International EUR O € 164.92 - -0.51 0.00
Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 Authorised Inv Funds
Sterling Corporate Bond B Acc £ 0.74 - 0.00 3.39 Strategic Corporate Bond Fund 131.26 136.73 -0.38 2.97 FCA Recognised Odey Allegra Developed Markets USD I $ 113.13 - -1.87 0.00
Series 1(Minimum initial investment 16375,000)
Sterling Corporate Bond B Inc £ 0.31 - -0.01 3.45 UK Select 1400.44 1458.79 24.32 1.01 Marlborough North American Fund Ltd £ 30.21 32.19 -1.05 0.00 United Kingdom Equity Index Fund £ 11.39 - -0.07 3.16 Odey European Focus Fund € 16.65 - -0.10 0.50
Strategic Bond B Acc £ 1.10 - 0.00 2.78 Marlborough Tiger Fund Ltd F £ 24.40 26.00 -0.75 0.00 UK Specialist Equity Inc £ 17.88 - -0.15 0.43 Odey Atlas Fund GBP I S £ 1.11 - -0.01 0.00
Strategic Bond B Inc £ 1.14 - -0.01 2.81 MFS Investment Funds (LUX) Contl Europe Spec Equity £ 15.00 - -0.17 0.00 Odey Giano European Fund EUR R € 121.36 - -0.38 0.00
FCA Recognised
UK Equity B Acc £ 2.47 - 0.04 2.35 Marwyn Asset Management Limited (CYM) US Spec Equity Fund £ 13.39 - 0.03 0.00 Odey Naver Fund EUR I € 126.50 - -0.63 0.00
Blend.Research Gb.Eq.Fd. € 92.80 - -3.51 - Regulated
UK Equity Absolute Return B Acc £ 1.24 - 0.00 0.00 Japan Specialist Fund X £ 9.67 - -0.06 0.00 Odey Odyssey USD I $ 133.07 - 0.06 0.00
Blend.Research Gb.Eq.Fd. £ 95.43 - -2.02 - Marwyn Value Investors £ 450.92 - -7.87 0.00
UK Equity Income B Acc £ 2.07 - 0.03 4.69 Pacific Basin Specialist Equity Fund £ 20.37 - 0.32 0.98 Odey Orion Fund EUR I € 116.78 - 0.00 0.00
Blend.Research U.S.Core Eq.Fd. ¥ 9112.00 - -300.00 -
UK Equity Income B Inc £ 1.60 - 0.03 4.83 UK Sovereign Bd Index Fund £ 11.03 - -0.04 2.53 Odey Swan Fund EUR I € 107.25 - 0.16 0.00
Blend.Research Gb.Eq.Fd. $ 89.72 - -2.44 - McInroy & Wood Portfolios Limited (UK)
UK Opportunities B Acc £ 1.68 - 0.03 2.27 Easter Alderston, Haddington, EH41 3SF 01620 825867 UK Specialist Equity Income Fund £ 8.88 - -0.07 4.36 Odey European Absolute Return GBP S £ 103.02 - 0.26 0.00
Em.Mk.Eq.Fund Euro € 97.56 - -3.71 0.00 Authorised Inv Funds
UK Smaller Companies B Acc £ 2.81 - 0.01 1.40 Global Spec Inv Grade Bd Fund GBP £ 9.74 - -0.03 3.03
Em.Mk.Eq.Fund Sterling £ 87.81 - -1.87 0.00 Balanced Fund Personal Class Units 3862.10 - 13.20 1.92
Global Emerg Mkts Equity Fund X £ 10.19 - 0.10 0.08 Odey Wealth Management (CI) Ltd (IRL)
Em.Mk.Eq.Fd.US Dollar $ 81.61 - -2.23 0.00 Income Fund Personal Class Units 2308.90xd - 9.00 3.05
www.odey.com/prices
Kames Capital Investment Portfolios ICVC (UK) Series 2 (Investment Management customers only)
Emerging Markets Fund Personal Class Units 1540.90 - 10.90 2.54 FCA Recognised
Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA Gb.Conc.Eq.Fd.Euro € 258.88 - -7.76 0.00
United Kingdom Equity Index Fund £ 11.40 - -0.06 3.86
0800 45 44 22 www.kamescapital.com Odey Opportunity EUR I € 209.99 - 0.27 0.00
Gb.Conc.Eq.Fd.Sterl.UK T £ 165.80 - -2.21 0.00 Smaller Companies Fund Personal Class Units 3519.80 - 23.90 1.76
Authorised Funds UK Specialist Equity Inc £ 18.10 - -0.14 1.70
Property Income B Acc 119.03 - 0.09 4.62 Gb.Conc.Eq.Fd.Sterling £ 250.89 - -3.36 0.00
Contl Europe Spec Equity £ 15.67 - -0.18 1.25
Omnia Fund Ltd
Property Income B Inc 109.89 - 0.08 4.77 Gb.Conc.Eq.Fd.US $ 179.52 - -3.48 0.00 Meridian Fund Managers Ltd Other International Funds
Other International Funds US Spec Equity Fund £ 13.99 - 0.03 0.39
Gb.Eq.Hdg Fd.Euro IRE T € 167.58 - -4.03 0.00 Estimated NAV $ 833.84 - -21.78 0.00
Global Gold & Resources Fund $ 184.00 - 2.35 - Japan Specialist Fund X £ 10.26 - -0.06 0.66
Kames Capital VCIC (IRL) Gb.Eq.Euro Hdg Fd. € 237.44 - -5.71 0.00
Global Energy & Resources Fund $ 31.18 - -3.49 - Pacific Basin Specialist Equity Fund £ 20.18 - 0.32 2.04
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493
Gb.Eq.Fund Euro € 258.96 - -7.91 0.00
FCA Recognised UK Sovereign Bd Index Fund £ 11.22 - -0.04 2.53
Absolute Return Bond B GBP Acc 1079.59 - 0.14 - Gb.Eq. Fd Euro IRE T € 163.87 - -5.01 0.00
Ministry of Justice Common Investment Funds (UK) UK Specialist Equity Income Fund £ 9.64 - -0.07 4.31
Eq Market Neutral B Acc 1024.11 - 0.06 - Gb.Eq.Fd.Sterling UK T £ 200.55 - -2.80 0.00 Property & Other UK Unit Trusts
Global Spec Inv Grade Bd Fund GBP £ 9.91 - -0.03 3.03
The Equity Idx Tracker Fd Inc 1245.00 1245.00 13.00 2.87
Eq Market Neutral Plus B Acc 1039.84 - 0.05 - Gb.Eq.Fd.US Dollar $ 283.49 - -5.66 0.00
Distribution Units Global Emerg Mkts Equity Fund X £ 9.79 - 0.10 0.97
High Yield Global Bond A GBP Inc 503.17 - -2.38 5.26 Gb.Eq.Fund Sterling £ 198.18 - -2.76 0.00 The initial charge you will pay will depend on the amount you invest
Optima Fund Management
Other International Funds
**Address and Telephone number for series 1 only
High Yield Global Bond B GBP Inc 1045.94 - -4.91 5.26 Gb.Val.Ex-Jap.Fd.USD $ 108.09 - -2.30 0.00
Mirabaud Asset Management (LUX) Cuttyhunk Fund II Limited $ 1358.76 - -2.04 0.00
Gb.Val.Ex-Japan Fd.Yen ¥ 12421.00 - -397.00 0.00 www.mirabaud.com, marketing@mirabaud.com
Investment Grade Global Bd A GBP Inc 552.62 - -0.15 2.34 JENOP Global Healthcare Fund Ltd $ 15.03 - -0.02 0.00
Regulated
Kames Global Equity Income B GBP Acc 1158.52 - 9.30 - Gb.Val.Fd. Euro € 122.27 - -3.94 0.00
Mir. Conv. Bds Eur A EUR € 131.60 - -0.49 0.00 OPTIKA Fund Limited - Cl A $ 100.91 - 0.66 -
Kames Global Equity Income B GBP Inc 1104.35 - 8.87 - Gb.Val.Fd.Sterling £ 113.98 - -1.77 0.00
Mir. Conv. Bds Glb A USD $ 109.17 - -1.20 0.00 Optima Fd NAV (Est) $ 86.74 - -3.66 0.00
Strategic Global Bond A GBP Inc 1079.50 - -0.31 0.71 Gb.Val.Fd.USD $ 96.53 - -2.08 0.00
Mir. - Eq Asia ex Jap A $ 155.99 - 3.03 0.00 Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00
Strategic Global Bond B GBP Inc 613.00 - -0.17 1.21 Low Volatility Gb.Eq.Fd.Euro € 98.44 - -2.72 -
Mir. - Eq Glb Emrg Mkt A USD $ 77.87 - 1.57 0.00 New Capital Fund Management Ltd (IRL) The Dorset Energy Fd Ltd NAV $ 20.83 - -1.83 0.00
Low Volatility Gb.Eq.Fd.Sterl £ 101.22 - -1.12 - Leconfield House, Curzon Street, London, W1J 5JB
Mir. - Eq Global Focus A USD $ 92.58 - -2.00 0.00 Platinum Fd Ltd $ 85.34 - -0.33 0.00
FCA Recognised
Kleinwort Benson Bank (UK) Low Volatility Gb.Eq.Fd.USD $ 95.17 - -1.62 - New Capital UCITS Funds
Mir. -Eq Spain A € 22.45 - -0.38 0.00 Platinum Fd Ltd EUR € 16.55 - -0.08 0.00
14 St. George Street, Mayfair, London W1S1FE
Low Volatility Gb.Eq.Fd.Yen ¥ 8675.00 - -240.00 - Asia Pac Bd USD Inst Inc $ 90.29 - -0.01 3.27
Dealing and enquiries: 0800 024 2400 Mir. - Eq Swiss Sm/Mid A SFr 307.01 - -1.40 0.00 Platinum Japan Fd Ltd $ 53.63 - 0.51 0.00
Authorised Inv Funds Asia Pac Bd USD Ord Inc $ 92.28 - 0.00 2.53
Unit Trust Manager/ACD - Host Capital Mir. - Glb High Yield Bds A $ 104.78 - -0.70 - Optima Partners Global Fd (Est) $ 13.87 - -0.39 0.00
HC KB Capital Growth A Acc 164.50 - 1.44 1.36
MFS Meridian Funds SICAV (LUX)
Mir. - Glb Eq High Income A USD $ 91.33 - -1.41 0.00
Asia Pac Eq EUR Ord Inc € 75.40 - -0.81 3.42
Optima Partners Focus Fund A $ 15.82 - 0.04 0.00
Regulated
Asia Pac Eq GBP Ord Inc £ 77.89 - -0.84 3.86
HC KB Capital Growth A Inc 154.04 - 1.36 1.38 Absolute Return A1 € 19.82 - -0.02 0.00 Mir. - Glb Inv Grade Bds A € 99.60 - -0.08 -
Asia Pac Eq USD Ord Inc $ 78.78 - -0.84 3.24
HC KB Enterprise Equity Income A Inc 101.89 - -0.95 3.06 Asia ex-Japan A1 $ 20.14 - -0.61 0.00 Mir. - Glb Strat. Bd A USD $ 102.80 - -0.25 0.00 Oryx International Growth Fund Ltd
Asia Pac Eq USD Inst Acc $ 84.78 - -0.89 0.00 Other International Funds
HC KB Enterprise Equity Income A Acc 151.38 - -1.42 3.69 Bond A1 $ 10.29 - 0.00 0.00
NAV (Fully Diluted) £ 6.93 - 0.36 0.00
Asia Pac Eq USD Inst Inc $ 87.81 - -0.93 3.97
HC KB Endeavour Multi Asset Balanced A Acc 127.12 - 0.37 0.81 China Equity Fd A1 $ 9.28 - -0.01 0.00 MW Japan Fund Plc (IRL)
FCA Recognised Dyn Europ Eq EUR Ord Inc € 160.62 - -0.64 1.33
HC KB Endeavour Multi Asset Balanced A Inc 120.82 - 0.36 0.81 Continental European Eqty A1 € 15.92 - -0.49 0.00
MW Japan Fund PLC A $ 23.61 - -0.10 - OTP Asset Management Romania SAI SA ((ROM))
Dyn Europ Eq GBP Ord Inc £ 170.04 - -0.68 1.69
HC KB Enterprise Fixed Income A Acc 122.96 - -0.35 3.44 Emer Mkts Debt Lo Curr Fd A1 $ 10.30 - -0.11 0.00 www.otpfonduri.ro
MW Japan Fund PLC B $ 23.79 - -0.10 -
Dyn Europ Eq USD Ord Inc $ 160.37 - -0.61 1.25 Other International Funds
HC KB Enterprise Fixed Income A Inc 109.14 - -0.32 3.44 Emerging Markets Debt A1 $ 31.95 - -0.13 0.00
MW Japan Fund PLC C $ 89.34 - 0.15 - OTP Comodisro RON 16.88 - 0.00 -
China Equity EUR Ord Acc € 113.23 - -1.25 0.00
Emerging Markets Eq.A1 $ 9.00 - -0.25 0.00
OTP Obligatiuni RON 14.28 - 0.00 -
China Equity GBP Ord Acc £ 117.81 - -1.34 0.00
Lloyds Investment Fund Managers Limited (1000)F (JER) European Concentrated A1 € 15.64 - -0.44 0.00
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Morant Wright Funds (Ireland) PLC (IRL) OTP Avantisro RON 7.61 - -0.27 -
China Equity USD Ord Acc $ 115.15 - -1.25 0.00
Other International Funds European Core Eq A1 € 28.36 - -0.79 0.00 FCA Recognised
OTP Euro Bond € 12.42 - 0.00 -
Morant Wright Fuji Yield EUR Dist Hedged € 10.13 - -0.01 - China Equity USD Inst Acc $ 118.51 - -1.28 0.00
Lloydstrust Gilt £ 12.2100xd - -0.0400 2.34 European Res.A1 € 29.33 - -0.90 0.00
OTP Dollar Bond $ 10.57 - 0.00 -
Lloyds Investment Funds Limited Morant Wright Fuji Yield GBP Acc Hedged £ 10.50 - -0.01 0.00 Europ. Equity Fd EUR € 95.73 - -0.37 -
European Smaller Companies A1 € 47.95 - -1.24 0.00
Euro High Income € 1.5830xd - -0.0020 2.98 OTP Premium Return RON 1043.10 - -5.57 -
Morant Wright Fuji Yield GBP Dist Hedged £ 10.21 - -0.01 - Europ. Equity Fd GBP £ 94.23 - -0.37 -
European Value A1 € 33.36 - -1.02 0.00
European £ 7.1230 - 0.0740 1.53
Morant Wright Fuji Yield USD Acc Hedged $ 10.23 - 0.00 0.00 Europ. Equity Fd USD $ 94.59 - -0.35 -
Global Conc.A1 $ 33.38 - -0.72 0.00
High Income £ 0.8536xd - -0.0031 5.02
Morant Wright Fuji Yield USD Dist Hedged $ 10.25 - -0.01 2.14 Global Val.Cr.Fd GBP Ord Inc £ 106.89 - -0.19 3.63
Global Credit Fund $ 10.15 - -0.01 0.00
International £ 3.7630 - 0.0090 1.38
Morant Wright Fuji Yield YEN Acc ¥ 1054.83 - -1.01 0.00 Global Val.Cr.Fd USD Inst Acc $ 120.37 - -0.22 0.00
Global Energy Fund A1 $ 10.77 - -0.32 0.00
North American £ 14.9100 - -0.0300 0.25
Morant Wright Fuji Yield B YEN Acc ¥ 929.77 - -0.50 - Global Val.Cr.Fd GBP Ord Acc £ 173.37 - -0.34 0.00
Global Equity A1 $ 40.95 - -0.92 0.00
Sterling Bond £ 1.4450xd - -0.0060 3.73
Morant Wright Fuji Yield YEN Dist ¥ 1032.95 - -0.99 2.13 Global Val.Cr.Fd USD Ord Acc $ 162.80 - -0.30 0.00
Global Equity A1 € 23.91 - -0.50 0.00 Permal Investment Mgmt Svcs Ltd
UK £ 5.9880 - 0.0550 1.66
Morant Wright Sakura Fund Sterling Acc Hedged £ 12.79 - 0.02 0.00 Global Val.Cr.Fd EUR Ord Acc € 151.41 - -0.29 0.00 www.permal.com
Global High Yield Fund $ 23.20 - -0.19 0.00
Lloyds Gilt Fund Limited Other International Funds
Morant Wright Sakura Fund Euro Acc Hedged € 12.76 - 0.02 0.00 Swiss Select Equity Inst Acc SFr 107.81 - 0.19 0.00
Lloyds Gilt Fund Quarterly Share £ 1.2730xd - -0.0040 1.86 Global High Yield Fund € 15.55 - -0.12 0.00 Offshore Fund Class A US $ Shares
Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1304.70 - 1.77 0.00 Swiss Select Equity Ord Acc SFr 106.52 - 0.18 0.00 Investment Holdings N.V. $ 5417.00 - -70.68 0.00
Monthly Share £ 1.2270xd - -0.0040 1.86 Global Multi-Asset A1 $ 14.21 - -0.19 0.00
Morant Wright Sakura Fund Dollar Acc Hedged $ 12.72 - 0.02 0.00 US Growth USD Ord Acc $ 183.66 - -0.02 0.00 Macro Holdings Ltd $ 4176.78 - -15.24 0.00
Lloyds Money Fund Limited Global Res.A1 $ 23.21 - -0.58 0.00
Sterling Class £ 52.6210 - 0.0000 0.10 Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 12.63 - 0.02 0.00 US Growth EUR Ord Acc € 175.42 - -0.04 0.00 Fixed Income Holdings N.V. $ 349.32 - -14.81 -
Global Total Return A1 € 16.96 - -0.21 0.00
Lloyds Multi Strategy Fund Limited
US Growth GBP Ord Acc £ 184.17 - -0.02 0.00 Permal Absolute Return Fund $ 163.19 - -0.40 0.00
Inflation-Adjusted Bond A1 $ 13.79 - -0.01 0.00
Conservative Strategy £ 1.0860 - -0.0040 1.97
US Growth USD Inst Acc $ 169.77 - -0.01 0.00
Japan Equity A1 $ 9.51 - -0.25 0.00
Growth Strategy £ 1.4210 - -0.0070 1.32
Wealthy Nat Bd EUR Inst Inc € 103.64 - -0.28 3.83
Latin American Equity Fd A1 $ 9.81 - -0.32 0.00
Aggressive Strategy £ 1.7000 - -0.0090 0.00
Wealthy Nat Bd GBP Inst Inc £ 107.69 - -0.29 3.66
Limited Maturity A1 $ 13.99 - 0.00 0.00
Global USD Growth Strategy $ 1.2480 - -0.0110 0.00
Wealthy Nat Bd EUR Ord Inc € 102.99 - -0.28 3.59
Dealing Daily Prudent Wealth Fd A1 $ 14.37 - -0.12 0.00
Morgan Stanley Investment Funds (LUX) Wealthy Nat Bd GBP Ord Inc £ 108.34 - -0.30 3.39
Research Bond A1 $ 16.54 - 0.03 0.00 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
Lothbury Property Trust (UK) www.morganstanleyinvestmentfunds.com Wealthy Nat Bd USD Ord Inc $ 105.58 - -0.29 3.37 Pictet Asset Management (Europe) SA (LUX)
UK Equity A1 £ 7.49 - -0.15 0.00 15, Avenue J.F. Kennedy L-1855 Luxembourg
155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900 FCA Recognised New Capital Alternative Strategies
Tel: 0041 58 323 3000
Property & Other UK Unit Trusts US Conc.Growth A1 $ 14.17 - -0.27 0.00 US Advantage A F $ 53.05 - -0.02 0.00 All Weather Fd USD Cls $ 117.83 - -0.64 0.00
FCA Recognised
Lothbury Property Trust GBP £ 1802.73 1933.97 16.21 3.09
US Government Bond A1 $ 17.18 - 0.05 0.00 Asian Equity A F $ 36.26 - 0.01 0.00 All Weather Fd EUR Cls € 105.67 - -0.67 0.00 Pictet-Absl Rtn Fix Inc-HI EUR € 106.40 - 0.05 0.00
Value A1 $ 20.00 - -0.41 0.00 Asian Property A F $ 15.94 - -0.12 0.00 All Weather Fd GBP Cls £ 113.91 - -0.67 0.00 Pictet-Absl Rtn Glo Div-I EUR F € 121.95 - -0.53 0.00
Asian Property AX F £ 10.78 - -0.01 0.54 Tactical Opps USD Cls $ 112.34 - -10.49 0.00 Pictet-Agriculture-I EUR F € 169.00 - -3.28 0.00
MMIP Investment Management Limited (GSY) Diversified Alpha Plus A F € 29.23 - -0.09 0.00 Tactical Opps EUR Cls € 93.89 - -8.83 0.00 Pictet-Asian Equities Ex Japan-I USD F $ 183.74 - 3.82 0.00
Regulated
Multi-Manager Investment Programmes PCC Limited Emerg Europ, Mid-East & Africa Eq A F € 55.96 - -0.63 0.00 Tactical Opps GBP Cls £ 105.23 - -10.15 0.00 Pictet-Asian Local Currency Debt-I USD F $ 149.12 - -0.37 0.00
European Equity Fd Cl A Initial Ser € 2642.19 2642.19 62.94 0.00 Emerging Markets Debt A F $ 72.13 - -0.61 0.00 Pictet-Biotech-I USD F $ 702.47 - -17.88 0.00
M & G Securities (1200)F (UK)
Japanese Equity Fd Cl A Initial Ser ¥ 368031.00 368031.00 6127.00 0.00 Emerging Markets Domestic Debt AX F £ 10.19 - -0.02 5.66 Pictet-Brazil Index I USD $ 29.49 - -0.38 0.00
PO Box 9039, Chelmsford, CM99 2XG
www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00 Emerging Markets Equity A F $ 28.85 - -0.13 0.00 Pictet-CHF Bonds I CHF SFr 506.57 - -1.66 0.00
Authorised Inv Funds
Pacific Basin Fd Cl A Initial Ser $ 2059.34 2059.34 -82.99 0.00 Euro Bond A F € 15.70 - -0.02 0.00 Pictet-China Index I USD $ 89.13 - -0.88 0.00
Charifund Inc 1357.80 - 15.12 5.07
UK Equity Fd Cl A Series 01 £ 2357.45 2381.20 0.73 0.00 Euro Corporate Bond AX F £ 22.22 - -0.10 1.54 Pictet-Clean Energy-I USD F $ 68.60 - -1.41 0.00
Charifund Acc 18741.02 - 208.58 4.91
Diversified Absolute Rtn Fd USD Cl AF2 $ 1586.40 - -4.69 0.00 Euro Strategic Bond A F € 42.99 - -0.14 0.00 Northwest Investment Management (HK) Ltd Pictet-Digital Communication-I USD F $ 235.39 - -5.11 0.00
M&G Corporate Bond A Acc 62.45xd - -0.21 3.08
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Diversified Absolute Return Stlg Cell AF2 £ 1607.75 - -3.92 0.00 European Currencies High Yield Bd A F € 20.89 - -0.09 0.00 Pictet-Eastern Europe-I EUR F € 230.02 - -3.46 0.00
M&G Corporate Bond A Inc 38.99xd - -0.13 3.10 Other International Funds
M&G Dividend A Inc 57.12xd - 0.40 4.77 European Equity Alpha A F € 38.39 - -0.04 0.00 Northwest $ class $ 2329.36 - -28.58 0.00 Pictet-Em Lcl Ccy Dbt-I USD F $ 146.75 - -0.69 0.00
M&G Dividend A Acc 579.96xd - 4.06 4.60
Manek Investment Mgmt Ltd (1000)F (UK) European Property A F € 32.43 - -0.13 0.00 Northwest Warrant $ class $ 1969.35 - -444.40 0.00 Pictet-Emerging Markets-I USD F $ 407.19 - 5.72 0.00
P.O.Box 100, Swindon SN1 1WR 0844 800 9401
M&G Episode Growth X Inc 47.80 - 0.28 1.91 Authorised Inv Funds Eurozone Equity Alpha A F € 10.25 - -0.05 0.00 Pictet-Emerging Markets Index-I USD F $ 182.82 - -1.49 0.00
Growth Fd Acc 54.82 57.98 -0.21 0.00 Global Bond A F $ 37.99 - -0.19 0.00 Pictet-Emerging Corporate Bonds I USD $ 104.36 - -0.31 0.00
M&G Episode Income A Acc 129.86xd - 0.43 3.77
M&G Episode Income A Inc 107.70xd - 0.36 3.85 Global Brands A F $ 92.29 - -0.10 0.00 Pictet-Emerging Markets High Dividend I USD $ 80.12 - 0.65 0.00
M&G Extra Income A Inc 693.68xd - 6.11 4.69
LNG Capital (CYM) Global Convertible Bond A F $ 40.10 - -0.10 0.00 Pictet-Emerging Markets Sust Eq I USD $ 73.40 - -0.50 0.00
Kingsbury House, 15-17 King St, London SW1Y 6QU
M&G Extra Income A Acc 5722.97xd - 50.39 4.55 www.lngcapital.com, Tel: 0207 839 3456 Global Property A F $ 25.45 - -0.07 0.00 Pictet-Environmental Megatrend Sel I EUR € 146.10 - -4.30 0.00
Regulated
M&G Global Basics A Inc 590.98 - 8.60 0.65 Indian Equity A F $ 31.13 - -0.68 0.00 Oasis Crescent Management Company Ltd Pictet-EUR Bonds-I F € 554.90 - -1.27 0.00
LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 - Other International Funds
M&G Global Basics A Acc 898.00 - 13.07 0.60 Latin American Equity A F $ 31.55 - -0.08 0.00 Pictet-EUR Corporate Bonds Ex Fin i EUR € 141.45 - -0.34 0.00
LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 - Oasis Crescent Equity Fund R 9.03 - 0.01 0.00
M&G Global Dividend Fund A Acc 173.40xd - 2.20 3.63 Short Maturity Euro Bond A F € 20.33 - -0.01 0.00 Pictet-EUR Corporate Bonds-I F € 197.68 - -0.44 0.00
LNG Europa Credit Fund USD $ 1183.45 - -15.60 -
M&G Global Dividend Fund A Inc 135.77xd - 1.73 3.71 US Dollar Liquidity A F $ 13.03 - 0.00 0.00 Pictet-EUR Government Bonds I EUR € 158.62 - -0.12 0.00
Oasis Global Mgmt Co (Ireland) Ltd (IRL)
US Growth A F $ 61.70 - 0.18 0.00 Regulated
M&G Glbl Emrgng Mkts A Acc 167.53 - 2.37 1.05 Pictet-EUR High Yield-I F € 234.87 - -1.91 0.00
Marlborough Fd Managers Ltd (1200)F (UK) Oasis Global Investment (Ireland) Plc
M&G Glbl Emrgng Mkts A Inc 161.85 - 2.29 1.06 Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500 US Growth AH F € 42.73 - 0.12 0.00 Pictet-EUR Short Mid-Term Bonds-I F € 136.95 - -0.01 0.00
Oasis Crescent Global Short Term Income Fund $ 0.98 - 0.00 0.86
www.marlboroughfunds.com
M&G Global Macro Bond Fund A Acc 110.00 - 0.03 1.39 Authorised Inv Funds US Growth AX F £ 43.21 - 0.35 0.00 Pictet-EUR Short Term HY I EUR € 118.15 - -0.15 0.00
Oasis Global Equity $ 24.95 - -0.09 0.23
M&G Global Macro Bond Fund A Inc 76.20 - 0.02 1.39 Balanced 150.40 159.03 -0.11 0.05 US Property A F $ 65.24 - 0.57 0.00 Oasis Crescent Global Investment Fund (Ireland) plc Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.93 - -0.01 0.00
Bond Income 49.31 52.18 -0.15 4.96 Oasis Crescent Global Equity Fund $ 25.41 - -0.10 0.00
M&G Global High Yield Bond X Inc 46.32xd - -0.59 4.81 Pictet-Euroland Index IS EUR € 118.33 - -0.98 0.00
Cash 50.06 50.06 0.00 0.32 Oasis Crescent Variable Balanced Fund £ 10.07 - -0.02 0.59
M&G Global High Yield Bond X Acc 109.98xd - -1.39 4.79 Morgens Waterfall Vintiadis.co Inc Pictet-Europe Index-I EUR F € 152.67 - -0.49 0.00
Other International Funds
Cautious Inc 80.26 84.46 -0.33 1.13 OasisCresGl Income Class A $ 10.60 - -0.01 2.42
M&G Managed Growth X Inc 72.25 - 1.08 0.60 Pictet-European Equity Selection-I EUR F € 562.77 - -3.77 0.00
Phaeton Intl (BVI) Ltd (Est) $ 381.15 - -21.38 0.00
Defensive A Inc 117.54 117.54 -0.18 0.27 OasisCresGl LowBal D ($) Dist $ 10.99 - -0.03 0.00
M&G Optimal Income A Inc 139.47 - -0.16 2.66 Pictet-European Sust Eq-I EUR F € 225.04 - -0.02 0.00
Emerging Markets 206.08 206.08 3.42 1.85 OasisCresGl Med Eq Bal A ($) Dist $ 11.09 - -0.03 0.33
M&G Optimal Income A Acc 184.25 - -0.21 2.66 Pictet-Global Bds Fundamental I USD $ 115.10 - 0.15 0.00
ETF Global Growth A 150.80 150.80 1.21 0.00 Oasis Crescent Gbl Property Eqty $ 8.80 - -0.03 2.07
M&G Recovery GBP A Inc 105.87xd - 1.41 0.87 Pictet-Global Bonds-I EUR € 165.85 - -0.63 0.00
M&G Recovery GBP A Acc 238.69xd - 3.17 0.87 ETF Commodity A 63.40 63.40 0.53 0.00 Pictet-Global Emerging Currencies-I USD F $ 93.69 - -0.30 0.00
M&G Strategic Corp Bond A Inc 72.29xd - -0.21 2.98 European Multi-Cap 289.07 289.07 3.61 0.29 Pictet-Global Emerging Debt-I USD F $ 347.96 - -1.57 0.00
M&G Strategic Corp Bond A Acc 104.35xd - -0.30 2.98 Extra Income 76.47 80.92 0.51 4.53 Pictet-Global Megatrend Selection-I USD F $ 199.49 - -3.40 0.00
Natixis International Funds (Lux) I SICAV (LUX)
Far East Growth A Inc 150.64 150.64 2.46 2.50 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
M&G Global Leaders GBP A Inc 181.63 - 2.38 1.45 Pictet-Greater China-I USD F $ 394.69 - 5.86 0.00
FCA Recognised
Global 170.21 179.14 -1.36 0.00
M&G Global Leaders GBP A Acc 427.77 - 5.61 1.43 Pictet-Health-I USD $ 248.72 - -4.10 0.00
Harris Global Equity R/A (USD) $ 224.86 224.86 -1.65 0.00
Odey Asset Management LLP (UK)
M&G UK Inflation Lnkd Corp Bnd A Acc 108.92 - 0.12 0.12 Global Bond Inc 138.24 146.29 -0.34 3.15 Pictet-High Dividend Sel I EUR F € 143.97 - -4.32 0.00
Harris US Equity Fund R/A (USD) $ 182.95 182.95 -0.03 0.00 40 Dukes Place, London, EC3A 7NH
High Yield Fixed Interest 71.01 75.34 -0.11 5.84 Order Desk and Enquiries: 0345 300 2106 Pictet-India Index I USD $ 87.37 - -1.30 0.00
M&G UK Inflation Lnkd Corp Bnd A Inc 107.35 - 0.11 0.12 Harris Concentrated US Equity R/A (USD) $ 138.51 138.51 -0.03 0.00
Authorised Corporate Director - Capita Financial Managers
Multi Cap Income A Inc 152.52 152.52 0.95 4.61
Authorised Inv Funds Pictet-Indian Equities-I USD F $ 399.92 - 4.71 0.00
Loomis Sayles Strategic Alpha R/A (USD) $ 108.22 108.22 0.01 -
Nano-Cap Growth A Acc 101.0759 111.0000 -0.0548 0.00 CF Odey Continental European GBP R Acc 712.09 - 8.49 0.03
M & G Securities Ltd (UK) Pictet-Japan Index-I JPY F ¥ 14667.69 - 38.45 0.00
Property & Other UK Unit Trusts CF Odey Opus GBP R Inc 3677.24 - 26.82 0.00
Special Situations A Acc 1134.79 1200.84 2.78 0.38 Pictet-Japanese Equities Opp-I JPY F ¥ 8748.30 - 36.01 0.00
Charibond 123.07 - -0.48 5.25
Natixis International Funds (Dublin) I plc (IRL)
UK Multi-Cap Growth A Inc 234.62 248.27 3.43 0.67 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 CF Odey Absolute Return GBP R 318.86 - -1.11 0.00 Pictet-Japanese Equity Selection-I JPY F ¥ 12973.04 - 53.94 0.00
(Accum Units) 3643.49 - -14.39 5.25 Regulated
UK Micro Cap Growth A 450.12 476.32 -0.51 0.00 CF Odey Portfolio Fund GBP R Inc 143.33 - 0.80 0.07
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.24 12.24 0.03 1.22 Pictet-LATAM Index I USD $ 41.47 - -0.43 0.00
NAACIF 71.01 - 0.63 4.93
US Multi-Cap Income 311.88 311.88 0.01 0.65
Loomis Sayles High Income R/D (USD) $ 7.08 7.08 -0.12 15.55 Pictet-LATAM Lc Ccy Dbt-I USD F $ 102.07 - 0.32 0.00
(Accum Units) 6365.19 - 56.71 4.80
MFM - Third Party Funds Odey Asset Management LLP (CYM)
Loomis Sayles Multisector Income R/D (GBP) $ 11.13 11.13 -0.14 5.93 Pictet-Pacific Ex Japan Index-I USD F $ 289.23 - -3.24 0.00
M&G Property Portfolio A Acc 135.96 143.11 0.01 3.23 Junior Oils 47.85 50.63 -0.56 0.00 Regulated
OEI Mac Inc GBP A £ 409.98 - 51.79 0.00 Pictet-Premium Brands-I EUR F € 136.31 - -3.66 0.00
Property Portfolio A 123.94 130.46 0.00 3.29 Junior Gold C Acc 17.82 17.82 -0.02 0.00
Natixis International Funds (UK) OEI Mac Inc GBP B £ 236.17 - 34.38 0.00 Pictet-Quality Global Equities I USD $ 125.29 - -2.19 0.00
Property Portfolio X 123.94 123.94 0.00 3.29 MFM Artorius Fund 160.00 160.00 0.09 0.30
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
OEI MAC Inc USD $ 2188.18 - 273.75 0.00 Pictet-Russia Index I USD $ 38.32 - -0.33 0.00
MFM Bowland 157.87 170.67 -4.18 0.00 Authorised Funds
H2O MultiReturns Fund N/A (GBP) £ 1.34 - 0.01 1.46 Odey European Inc EUR € 943.66 - 106.51 0.00 Pictet-Russian Equities-I USD F $ 34.50 - -0.34 0.00
M & G (Guernsey) Ltd (GSY) MFM Hathaway Inc 103.46 108.34 -0.20 1.93
Regulated Harris Associates Global Concentrated Equity Fund N/A (GBP) £ 0.99 - 0.02 0.00 Odey European Inc GBP A £ 363.95 - 41.44 0.00 Pictet-Security-I USD F $ 183.02 - -3.45 0.00
The M&G Offshore Fund Range MFM SGWM Managed A Acc 121.49 121.49 -1.06 0.16
Loomis Sayles Strategic Income N/D (GBP) £ 0.95 - 0.01 4.31 Odey European Inc GBP B £ 206.55 - 23.52 0.00 Pictet-Select-Callisto I EUR € 104.16 - -1.31 0.00
Corporate Bond 1298.06 1338.21 -4.33 3.08 MFM Techinvest Special Situations Acc 142.21 142.21 -0.09 0.01
Loomis Sayles Strategic Income H-N/D (GBP) £ 0.86 - 0.01 4.47 Odey European Inc USD $ 436.39 - 49.24 0.00 Pictet-Small Cap Europe-I EUR F € 1027.10 - -16.38 0.00
Global Basics 2186.47 2254.10 31.66 0.34 MFM Techinvest Technology Acc 333.28 333.28 -13.55 0.00
Loomis Sayles US Equity Leaders N/A (GBP) £ 1.46 - 0.02 0.25 Giano Capital EUR Inc € 4652.16 - 195.57 0.00 Pictet-ST.MoneyMkt-I € 140.44 - -0.01 0.00
Global Leaders 3154.06 3285.48 41.27 1.15 MFM UK Primary Opportunities A Inc 315.66 315.66 3.36 1.40
Seeyond Factor Plus Europe Ex U.K Equity Fund N/A (GBP) £ 0.96 - 0.02 - Pictet-ST.MoneyMkt JPY I USD ¥ 101499.69 - -3.04 0.00
Global High Yield Bond 910.71 938.88 -11.59 4.76 Slater Investments Ltd - Investment Adviser
MFM Slater Growth 407.79 432.67 6.18 0.11 Seeyond Factor Plus U.K Equity Fund N/A (GBP) £ 0.94 - 0.01 - Pictet-ST.MoneyMkt-ICHF SFr 124.13 - -0.01 0.00
Global Macro Bond Fund 11436.34 11790.04 2.99 1.39
Odey Asset Management LLP (IRL)
Asset Management
Managemen
FCA Recognised
MFM Slater Income A Inc 154.65 154.65 0.99 4.08 Pictet-ST.MoneyMkt-IUSD $ 135.34 - 0.00 0.00
North American Dividend Fund 150.69 156.97 2.49 2.44 Odey Pan European EUR R € 313.92 - -2.71 0.00
Asset Management Asset Management
Wednesday 20 January 2016 FINANCIAL TIMES 29

MANAGED FUNDS SERVICE

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

Pictet-Timber-I USD F $ 127.50 - -2.53 0.00 Polunin Discovery - Frontier Markets $ 1291.69 - -42.86 0.00 Max 100% Shs Port Acc Ret 269.00 - 0.20 - Global Fixed Interest Fund £ 0.9497 - 0.0001 5.50 Japan Equity Class JP3 ¥ 1.16 - 0.00 0.00 UK Income B Inc X F 237.49 - -2.79 3.89

Pictet Total Ret-Agora I EUR € 116.23 - 0.09 0.00 Polunin Small Cap $ 1242.47 1258.00 -71.16 0.00 Ruffer LLP (1000)F (UK) Max 100% Shs Port Acc X 193.10 - 0.20 - Sterling Fixed Interest Fund £ 0.8322 - -0.0041 4.29 Money Market
40 Dukes Place, London EC3A 7NH
Pictet Total Ret-Corto Europe I EUR € 133.44 - -0.43 0.00 Order Desk and Enquiries: 0345 601 9610
Authorised Inv Funds
Max 100% Shs Port Acc S 140.90 - 0.20 - UK Equity Fund £ 1.7947 - 0.0247 2.93 The National Investor (TNI)
www.tni.ae
Value Partners Hong Kong Limited
www.valuepartners.net, fis@vp.com.hk
(IRL)
Trusts and
Pictet Total Ret-Divers Alpha I EUR € 104.90 - -0.05 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY) Enhanced Inc Inc Ins 199.60 - 3.20 -
Bank Accounts
Authorised Corporate Director - Capita Financial Managers Other International Funds Regulated
Regulated
Pictet Total Ret-Kosmos I EUR € 109.12 - 0.07 0.00 CF Ruffer Investment Funds Enhanced Inc Inc Ret 188.10 - 3.10 - TNI Blue Chip UAE Fund * AED 8.31 - 0.00 0.00 Value Partners Asia ex-Japan Equity Fund $ 7.67 - -0.06 - Gross
Monument Growth 12/01/2016 £ 477.62 483.01 -8.29 1.22
TNI Funds Ltd (BMU) Gross Net AER Int Cr
Pictet Total Ret-Mandarin I USD $ 110.74 - 0.17 0.00 CF Ruffer Gold Fund C Acc 82.42 - -0.87 0.00 Enhanced Inc Inc X 160.10 - 2.60 - Value Partners Classic Equity Fund USD Z Unhedged $ 9.92 - 0.24 0.00
MENA Hedge Fund $ 938.96 - 33.96 0.00
CF Ruffer Gold Fund O Acc 81.54 - -0.88 0.00 Value Partners Classic Equity Fund CHF HedgedSFr 10.36 - 0.25 0.00
Pictet-US Equity Selection-I USD $ 172.25 - -3.72 0.00 Enhanced Inc Acc Inst 150.20 - 2.50 - CCLA Investment Management Ltd
Prusik Investment Management LLP (IRL) TNI Funds Plc (Ireland)
Senator House 85 Queen Victoria Street, London EC4V 4ET
Pictet-US High Yield-I USD F $ 140.82 - -0.34 0.00 Enquiries - 0207 493 1331 Equity & General C Acc 366.01 - -7.34 0.06 Managed Investments OEIC Value Partners Classic Equity Fund EUR Hedged € 10.48 - 0.25 0.00
MENA UCITS Fund * $ 966.47 - -21.64 0.00 CBF Church of England Deposit Fund 0.50 - 0.50 Qtr
Regulated Max 30% Shs Port Acc Ret 152.40 - -0.30 -
Pictet-USA Index-I USD F $ 166.29 - -3.67 0.00 Equity & General C Inc 337.57 - -6.78 0.06 Stenham Asset Management Inc Value Partners Classic Equity Fund GBP Hedged £ 10.72 - 0.26 0.00
Prusik Asian Equity Income B Dist $ 144.11 - 2.16 3.84 www.stenhamassetmanagement.com
Equity & General O Inc 336.10 - -6.77 0.00
Max 30% Shs Port Acc X 152.20 - -0.30 - CCLA Fund Managers Ltd
Pictet-USD Government Bonds-I F $ 642.89 - 3.00 0.00 Other International Funds Value Partners Classic Equity Fund GBP Unhedged £ 11.44 - -0.08 0.00
Prusik Asia A $ 177.36 - 2.21 0.00 Thesis Unit Trust Management Limited (UK) Senator House 85 Queen Victoria Street, London EC4V 4ET
Max 30% Shs Port Acc S 146.10 - -0.30 - Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP COIF Charities Deposit Fund 0.45 - 0.45 Qtr
Pictet-USD Short Mid-Term Bonds-I F $ 129.94 - 0.14 0.00 Equity & General O Acc 362.25 - -7.29 0.00 Stenham Asia USD $ 128.00 - -1.80 - Value Partners Classic Equity USD Hedged $ 12.20 - 0.30 0.00
Prusik Asian Smaller Cos A $ 128.60 - 1.70 0.00 Authorised Funds
Max 30% Shs Inc Port Inc Ret 150.90 - 0.00 -
Pictet-USD Sov.ST.Mon.Mkt-I $ 102.68 - 0.00 0.00 European C Acc 501.19 - -2.10 0.27 Stenham Credit Opportunities A Class USD $ 99.47 - -1.45 0.00 Value Partners Greater China Equity Fund $ 7.35 - -0.07 -
TM New Court Fund A 2011 Inc £ 12.71 - 0.05 0.00
Max 30% Shs Inc Port Inc X 150.90 - -0.10 -
Pictet-Water-I EUR F € 258.91 - -6.33 0.00 European O Acc 496.08 - -2.12 0.00 Stenham Equity UCITS USD $ 129.95 - -6.28 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.01 - -0.15 -
Purisima Investment Fds (UK) (1200)F (UK)
Max 30% Shs Inc Port Inc S 145.00 - 0.00 -
TM New Court Fund - A 2014 Acc £ 12.74 - 0.05 0.00
Data Provided by
40 Dukes Place, London EC3A 7NH Japanese Fund C Acc 175.93 - -5.54 0.00 Stenham Growth USD $ 214.36 - -1.09 - Value Partners Health Care Fund HKD Class A UnhedgedHK$ 8.47 - -0.11 -
TM New Court Equity Growth Fund - Inc £ 12.74 - 0.05 0.00
Order Desk and Enquiries: 0345 922 0044 Max 60% Shs Port Acc Ret 260.40 - 0.00 -
Pimco Fds: Global Investors Series Plc (IRL) Japanese Fund O Acc X 173.89 - -5.49 0.00 Stenham Healthcare USD $ 184.07 - 0.80 0.00 Value Partners Health Care Fund USD Class A Unhedged $ 8.45 - -0.11 -
Authorised Inv Funds
PIMCO Europe Ltd,11 Baker Street,London W1U 3AH Authorised Corporate Director - Capita Financial Managers Max 60% Shs Port Inc Ret 206.00 - 0.00 -
Pacific C Acc 283.63 - -14.64 0.58 Stenham Managed Fund USD $ 113.54 - -0.62 -
http://gisnav.pimco-funds.com/
Global Total Fd PCG A 158.18 - 1.05 0.52 Max 60% Shs Port Inc X 159.50 - 0.00 -
Dealing: +44 20 3640 1000 Pacific O Acc 280.45 - -14.49 0.27 Stenham Macro UCITS USD $ 101.43 - -0.28 - Veritas Asset Management LLP (IRL)
PIMCO Funds: +44 (0)20 3640 1407 Global Total Fd PCG B 157.09 - 1.04 0.27 Max 60% Shs Port Inc S 141.30 - 0.00 - HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
FCA Recognised Total Return C Acc 383.04 - -4.00 1.39 Stenham Multi Strategy USD $ 115.54 - -0.74 -
Veritas Funds Plc
Global Total Fd PCG INT 155.37 - 1.03 0.00 Managed Investments OEIC 2
Capital Securities Inst Acc $ 14.63 - -0.05 0.00 Total Return C Inc 265.40 - -2.77 1.41
Investments Inc Port Inc Ret 161.50 - -0.90 -
Stenham Quadrant USD A $ 398.60 - -2.93 - www.veritas-asset.com
+353 1 635 6799
www.morningstar.co.uk
Commodity Real Return Fund Inst Acc $ 5.31 - -0.09 0.00 Total Return O Inc 262.54 - -2.76 1.41 Stenham Trading Inc USD $ 115.43 - -0.76 - FCA Recognised Data as shown is for information purposes only. No
Investments Inc Port Inc X 146.30 - -0.80 - Toscafund Asset Management LLP (UK)
Credit Absolute Return Fund Inst Acc $ 10.85 - -0.04 0.00 Purisima Investment Fds (CI) Ltd (JER) www.toscafund.com Institutional offer is made by Morningstar or this publication.
Total Return O Acc 379.09 - -3.98 1.39 Stenham Universal USD $ 430.13 - -1.32 -
Regulated £ Gov Bond Inc Inst (gross) 177.80 - -0.90 - Authorised Funds Veritas Asian Fund A USD H $ 289.60 - 1.93 0.42
Diversified Income - Inst Acc $ 18.79 - -0.06 0.00 PCG B X 150.44 - -3.37 0.00 Stenham Universal II USD $ 159.28 - -0.56 0.00
£ Gov Bond Inc Inst 146.10 - -0.80 - Aptus Global Financials B Acc £ 2.83 - -0.04 4.54
Veritas Asian Fund A GBP H £ 372.89 - 3.63 0.24
Diversified Income Durat Hdg Fund Inst Acc $ 10.85 - -0.08 0.00 PCG C X 148.33 - -3.31 0.00
£ Gov Bond Acc Inst 148.20 - -0.80 - Aptus Global Financials B Inc £ 2.47 - -0.04 4.55
Veritas Asian Fund A EUR H € 302.16 - 2.46 0.21
Emerging Asia Bond Fund Inst Acc $ 9.25 - -0.05 0.00
Stratton Street Capital (CI) Limited (GSY)
Strat Bond Inc Inst (gross) 179.00 - -0.40 - Veritas China Fund A USD $ 130.60 - -0.08 0.35
Emerging Local Bond - Inst Acc $ 10.16 - -0.09 0.00 Putnam Investments (Ireland) Ltd (IRL)
Strat Bond Inc Inst 148.10 - -0.30 -
Regulated
Japan Synthetic Warrant Yen Class ¥ 1782.40 - 9.56 0.00
Toscafund Asset Management LLP Veritas China Fund A GBP £ 135.16 - -0.08 0.36
Guide to Data
Regulated www.toscafund.com
Emerging Markets Bond - Inst Acc $ 36.03 - -0.30 0.00
Putnam New Flag Euro High Yield Plc - E € 976.17 - -3.34 4.30 Strat Bond Acc Inst 150.50 - -0.30 - Japan Synthetic Warrant GBP Hedged Class £ 197.20 - -2.68 0.00 Other International Funds Veritas China Fund A EUR € 129.13 - -0.09 0.36
Emerging Markets Corp.Bd Fund Inst Acc F $ 12.26 - -0.07 0.00 S W Mitchell Capital LLP (CYM) The fund prices quoted on these pages are supplied by
Managed Investments OEIC 3 Tosca A USD $ 305.04 - -1.61 0.00 the operator of the relevant fund. Details of funds
Regulated Japan Synthetic Warrant USD Class $ 19.22 - 0.47 0.00 Veritas Global Equity Income Fund D USD $ 103.33 - 0.10 4.25
Emerging Markets Short-Term Local Currency Fund $ 11.24 - -0.08 0.00 Div Inc Port Inc Ret 165.40 - 2.80 - published on these pages, including prices, are for the
S W Mitchell European Fund Class A EUR € 328.95 - -9.46 - Tosca Mid Cap GBP £ 245.63 - -7.49 0.00 purpose of information only and should only be used
Rathbone Unit Trust Mgmt (1200)F (UK) Japan Synthetic Warrant USD Hedged Class $ 196.54 - -2.43 0.00 Veritas Global Equity Income Fund D EUR € 184.29 - 0.84 4.17
Euro Bond - Inst Acc € 22.60 - -0.03 0.00 Corp Bond Acc Inst (gross) 212.60 - -1.10 - as a guide. The Financial Times Limited makes no
PO Box 9948, Chelmsford, CM99 2AG Tosca Opportunity B USD $ 334.27 - -12.71 0.00
S W Mitchell Small Cap European Fund Class A EUR € 231.38 - 0.21 - Renminbi Bond Fund AUD Cls A A$ 111.69 - -0.72 3.93 Veritas Global Equity Income Fund D GBP £ 140.33 - 0.63 4.17 representation as to their accuracy or completeness
Order Desk: 0845 300 2101, Enquiries: 0207 399 0399 and they should not be relied upon when making an
Euro Credit - Inst Acc € 14.64 - -0.01 0.00 Corp Bond Inc Inst 142.10 - -0.80 -
Authorised Inv Funds The Charlemagne Fund EUR € 315.89 - -12.01 - Pegasus Fund Ltd A-1 GBP £ 55.41 - 0.42 0.00 investment decision.
Renminbi Bond Fund AUD Cls B A$ 113.55 - -0.73 3.67 Veritas Global Focus Fund D USD $ 23.88 - -0.23 0.65
Euro Income Bond - Inst Acc F € 12.72 - -0.03 0.00 Blue Chip Income Inc 144.45 149.19 2.34 4.17 Corp Bond Acc Inst 144.70 - -0.80 -
Renminbi Bond Fund CHF Cls A SFr 108.28 - -0.71 4.01 Veritas Global Focus Fund D EUR € 22.13 - -0.14 0.64 The sale of interests in the funds listed on these pages
Euro Long Average Duration - Inst Acc € 21.71 - -0.06 0.00 Blue Chip Income Acc 218.01 224.91 3.52 4.04 Multi-Manager OEIC may, in certain jurisdictions, be restricted by law and
S W Mitchell Capital LLP (IRL)
Bal Intl Track Acc Ret 253.80 - 1.30 - Renminbi Bond Fund CHF Cls B SFr 108.27 - -0.71 3.76 Veritas Global Focus Fund D GBP £ 28.33 - -0.18 0.63 the funds will not necessarily be available to persons
Euro Low Duration Fund Inst Acc € 11.21 - 0.00 0.00 Ethical Bond Inc 89.92 91.91 -0.30 4.72 Regulated in all jurisdictions in which the publication circulates.
Renminbi Bond Fund CNH Cls A CNH 120.20 - -0.86 3.36 Veritas Global Focus Fund A GBP £ 27.36 - -0.17 0.36 Persons in any doubt should take appropriate
SWMC European Fund B EUR € 13634.26 - -210.48 0.00 Bond Mthly Inc Acc Ret 143.30 - -0.40 -
Euro Real Return - Inst Acc € 13.29 - -0.02 0.00 Ethical Bond Acc 171.98 175.43 -0.58 4.89 professional advice. Data collated by Morningstar. For
Renminbi Bond Fund CNH Cls B CNH 120.14 - -0.87 3.13 Veritas Global Focus Fund A EUR € 12.90 - -0.08 0.36 other queries contact reader.enquiries@ft.com +44
SWMC UK Fund B £ 11038.55 - -197.72 0.00 Bond Mthly Inc Inc Ret 91.52 - -0.30 -
Euro Short-Term Inst Acc € 12.22 - 0.00 0.00 Global Opportunities Acc 135.88 140.22 1.10 0.11 (0)207 873 4211.
Renminbi Bond Fund Euro Cls B € 110.07 - -0.72 3.76 Veritas Global Focus Fund A USD $ 23.04 - -0.23 0.38
Euro Ultra Long Duration - Inst Acc € 28.71 - -0.16 0.00 SWMC Small Cap European Fund B EUR € 12561.79 - -250.40 0.00 The fund prices published in this edition along with
Income Inc 811.40 839.40 10.06 4.08 TreeTop Asset Management S.A. (LUX)
Renminbi Bond Fund GBP Cls B £ 111.96 - -0.73 3.53 Veritas Global Focus Fund C GBP £ 29.71 - -0.18 0.00 additional information are also available on the
SWMC Emerging European Fund B EUR € 7977.50 - -62.07 0.00 Santander Asset Management UK Limited (1200)F (UK) Regulated Financial Times website, www.ft.com/funds. The
Global Advantage - Inst Acc $ 11.81 - 0.00 0.00 Income Acc 1262.62 1304.44 15.65 3.96 287 St Vincent Street, Glasgow G2 5NB 0845 605 4400 TreeTop Convertible Sicav funds published on these pages are grouped together
Renminbi Bond Fund SGD Cls B S$ 111.52 - -0.72 3.48 Veritas Global Focus Fund C EUR € 23.31 - -0.15 0.00
Global Advantage Real Return Fund Inst Acc $ 8.13 - -0.03 0.00 Authorised Inv Funds by fund management company.
Multi Asset Enhanced Growth Acc 116.77 - 0.68 0.00 International A € 277.68 - -1.01 0.00
Santander Premium Fund (OEIC) Renminbi Bond Fund USD Cls B $ 111.71 - -0.73 3.29 Veritas Global Focus Fund C USD $ 25.09 - -0.24 0.00
Global Bond - Inst Acc $ 27.84 - 0.01 0.00 Multi Asset Strategic Growth inc 144.60 - 0.19 1.12 A Shares International B $ 356.41 - -1.36 0.00 Prices are in pence unless otherwise indicated. The
Renminbi Bond Fund YEN Cls B ¥ 12676.47 - -82.54 0.00 Veritas Global Equity Income Fund A GBP £ 134.45 - 0.60 4.18 change, if shown, is the change on the previously
Global Bond Ex-US - Inst Acc $ 19.54 - 0.01 0.00 Multi Asset Strategic Growth acc 153.54 - 0.20 1.12 Europe (ex-UK) 266.40 - 4.20 - International C £ 120.58 - -0.52 0.00 quoted figure (not all funds update prices daily). Those
Renminbi Bond Fund USD Cls A $ 153.75 - -1.00 3.53 Veritas Global Equity Income Fund A EUR € 178.99 - 0.80 4.17 designated $ with no prefix refer to US dollars. Yield
Global High Yield Bond - Inst Acc $ 19.18 - -0.16 0.00 Multi Asset Total Return inc 125.06 - 0.11 1.83 Japan Equities 151.70 - -0.30 - International D € 257.77 - -0.95 3.04 percentage figures (in Tuesday to Saturday papers)
Renminbi Bond Fund GBP Cls A £ 148.96 - -0.97 3.78 Veritas Global Equity Income Fund A USD $ 99.41 - 0.10 4.25 allow for buying expenses. Prices of certain older
Global Investment Grade Credit - Inst Income $ 11.96 - 0.00 3.84 Multi Asset Total Return acc 138.37 - 0.11 1.79 Pacific Bas (ex-Japan) 482.10 - 6.80 - TreeTop Global Sicav insurance linked plans might be subject to capital
Renminbi Bond Fund SGD Cls A S$ 147.45 - -0.96 3.73 Veritas Global Equity Income Fund C GBP £ 161.63 - 0.72 - gains tax on sales.
RobecoSAM (LUX)
Sterling Bonds 263.60 - -1.30 - Global Opp.A € 126.87 - 0.37 0.00
Global Investment Grade Credit Fund Inst Acc € € 11.59 - -0.10 0.00 Recovery Inc 399.25 414.47 3.94 2.59
Tel. +41 44 653 10 10 http://www.robecosam.com/ Guide to pricing of Authorised Investment Funds:
Renminbi Bond Fund YEN Cls A ¥ 18774.00 - -122.05 0.00 Global Opp.B $ 124.34 - 0.10 0.00 Veritas Global Equity Income Fund C EUR € 215.07 - 0.98 -
Global Investment Grade Credit Fund Inst Acc $ $ 16.52 - -0.01 0.00 Recovery Acc 482.46 500.32 4.75 2.54 Regulated UK Equities 254.10 - 3.40 - (compiled with the assistance of the IMA. The
Renminbi Bond Fund EUR Cls A € 101.04 - -0.66 4.00 Veritas Global Equity Income Fund C USD $ 118.75 - 0.12 - Investment Management Association, 65 Kingsway,
RobecoSAM Sm.Energy/A £ 10.69 - -0.04 1.61 Global Opp.C £ 166.39 - 0.51 0.00
Global Multi-Asset - Inst Acc $ 13.40 - -0.21 0.00 Strategic Bond I-Class Acc 124.18 124.94 -0.22 3.95 US Equities 255.20 - 0.20 - London WC2B 6TD.
Veritas Global Real Return Fund A USD $ 20.37 - -0.24 0.29 Tel: +44 (0)20 7831 0898.)
RobecoSAM Sm.Energy/N € 10.64 - 0.02 0.00 B Shares Sequoia Equity A € 128.94 - 0.36 0.00
Global Real Return - Inst Acc $ 17.82 - -0.01 0.00 Strategic Bond I-Class Inc 108.08 108.82 -0.19 3.91
RobecoSAM Sm.Materials/A £ 113.53 - -0.56 1.43 Pacific Bas (ex-Japan) 481.40 - 6.70 - Veritas Global Real Return Fund A GBP £ 11.41 - -0.14 0.32 OEIC: Open-Ended Investment Company. Similar to a
Sequoia Equity B $ 130.38 - 0.06 0.00
Income Fund Inst Acc $ 12.20 - -0.05 0.00 unit trust but using a company rather than a trust
RobecoSAM Sm.Materials/N € 128.44 - -0.03 0.00 Veritas Global Real Return Fund A EUR € 12.01 - -0.15 0.12 structure.
Sequoia Equity C £ 156.59 - 0.46 0.00
Inflation Strategy Fund Inst Acc $ 8.28 - -0.08 0.00
Retail Different share classes are issued to reflect a different
RobecoSAM Sm.Materials/Na € 88.63 - -0.03 - Saracen Fund Managers Ltd (1000)F (UK)
Low Average Duration - Inst Acc $ 14.75 - -0.02 0.00 Veritas Asian Fund B USD $ 201.73 - 1.33 0.00 currency, charging structure or type of holder.
19 Rutland Square, Edinburgh EH1 2BB
RobecoSAM Gl.Small Cap Eq/A £ 72.84 - -0.31 1.28 Dealing: 00 353 1 603 9921
PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 6.89 - -0.25 0.00 Veritas Asian Fund B GBP £ 274.82 - 2.67 0.00 Selling price: Also called bid price. The price at which
Saracen Investment Funds ICVC (OEIC) Enq. 0131 202 9100 E.I. Sturdza Strategic Management Limited (GSY) units in a unit trust are sold by investors.
RobecoSAM Gl.Small Cap Eq/N € 142.70 - 0.05 0.00
PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 9.61 - -0.25 0.00 Authorised Inv Funds Regulated Veritas Asian Fund B EUR € 222.62 - 1.81 0.00
RobecoSAM Sustainable Gl.Eq/B € 165.34 - 0.24 0.00 Buying price: Also called offer price. The price at
Saracen Growth Fd Alpha Acc £ 3.47 - -0.02 0.97 Nippon Growth Fund Limited ¥ 92108.00 - -2959.00 0.00
PIMCO RAE Fundam.PLUS US Inst Acc $ 11.04 - -0.29 0.00 Robeco Asset Management (LUX) Veritas China Fund B GBP £ 131.03 - -0.08 0.00 which units in a unit trust are bought by investors.
Coolsingel 120, 3011 AG Rotterdam, The Netherlands. RobecoSAM Sustainable Gl.Eq/N € 142.78 - 0.22 0.00 Includes manager’s initial charge.
Saracen Growth Fd Beta Acc £ 5.55 - -0.03 1.45 Strat Evarich Japan Fd Ltd JPY ¥ 83242.00 - -7205.00 0.00
Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.11 - -0.09 0.00 www.robeco.com/contact Veritas China Fund B EUR € 163.91 - 1.09 0.00
RobecoSAM S.HealthyLiv/B € 166.79 - 0.65 0.00 Troy Asset Mgt Ltd (UK) Single price: Based on a mid-market valuation of the
FCA Recognised Saracen Global Income & Growth Fund A - Acc £ 1.06 - -0.01 3.01 Strat Evarich Japan Fd Ltd USD $ 822.92 - -71.91 0.00
StocksPLUS{TM} - Inst Acc $ 21.13 - -0.49 0.00 Veritas Global Focus Fund B USD $ 16.64 - -0.16 0.00 underlying investments. The buying and selling price
40 Dukes Place, London EC3A 7NH
Asia-Pacific Equities (EUR) € 119.89 - 1.17 0.00 RobecoSAM S.HealthyLiv/N € 155.53 - 0.61 0.00 for shares of an OEIC and units of a single priced unit
Saracen Global Income & Growth Fund A - Dist £ 0.98 - 0.00 2.75 Order Desk and Enquiries: 0345 608 0950
Total Return Bond - Inst Acc $ 27.09 - 0.01 0.00 Veritas Global Focus Fund B GBP £ 20.90 - -0.13 0.00 trust are the same.
Chinese Equities (EUR) € 64.52 - 1.26 0.00 Authorised Inv Funds
RobecoSAM S.HealthyLiv/Na £ 103.38 - -0.06 - Saracen Global Income and Growth Fund -Acc # £ 1.32 - -0.01 3.37 E.I. Sturdza Funds PLC (IRL)
UK Corporate Bond - Inst Acc £ 17.22 - -0.08 0.00 ACD Capita Financial Mgrs Veritas Global Focus Fund B EUR € 15.36 - -0.10 0.00 Treatment of manager’s periodic capital charge:
Em Stars Equities (EUR) € 150.96 - 2.10 0.00 Regulated The letter C denotes that the trust deducts all or part
RobecoSAM S.Water/A £ 160.24 - -0.36 1.22 Saracen Global Income and Growth Fund -Dist # £ 1.15 - -0.01 2.78 Trojan Investment Funds
UK Long Term Corp. Bnd Inst-Inst Acc £ 19.12 - -0.14 0.00 Veritas Global Equity Income Fund B GBP £ 123.60 - 0.54 4.20 of the manager’s/operator’s periodic charge from
Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 974.50 - -12.32 0.00
Emerging Markets Equities (EUR) € 125.08 - 1.40 0.00 RobecoSAM S.Water/N € 151.47 - 0.35 0.00 Spectrum Fund O Acc ♦ 157.17 - -0.66 0.28 capital, contact the manager/operator for full details
Saracen UK Income Fund - Acc £ 0.90 - -0.01 -
UK Low Duration - Inst Acc £ 14.03 - -0.02 0.00 Veritas Global Equity Income Fund B EUR € 164.14 - 0.73 4.19 of the effect of this course of action.
Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1148.27 - -14.47 0.00
Flex-o-Rente (EUR) € 110.31 - 0.09 0.00 Spectrum Fund O Inc ♦ 153.20 - -0.65 0.28
Saracen UK Income Fund - Dist £ 0.87 - -0.01 -
UK Real Return - Inst Acc £ 22.78 - -0.04 0.00 Veritas Global Equity Income Fund B USD $ 98.49 - 0.09 4.27 Exit Charges: The letter E denotes that an exit charge
Nippon Growth (UCITS) Fund JPY Class A shares ¥ 90169.00 - -1135.00 0.00
Glob.Consumer Trends Equities (EUR) € 141.06 - -4.57 0.00 . Spectrum Income Fund O Acc 94.98 - -0.14 - may be made when you sell units, contact the
UK Sterling Long Average Duration - Inst Acc £ 21.93 - -0.14 0.00 For Save & Prosper please see Countrywide Assured Veritas Global Real Return Fund B USD $ 19.75 - -0.24 0.00 manager/operator for full details.
Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 75609.00 - -952.00 0.00
High Yield Bonds (EUR) € 118.58 - -1.19 0.00 Spectrum Income Fund O Inc 94.55 - -0.14 -

Asset Management
Unconstrained Bond - Inst Acc $ 11.67 - -0.06 0.00 Veritas Global Real Return Fund B GBP £ 11.19 - -0.14 0.00 Time: Some funds give information about the timing of
Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00
Trojan Ethical Income O Acc 97.64 - 1.18 -
Asset Management
price quotes. The time shown alongside the fund
Asset Management
Lux -O- Rente (EUR) € 143.09 - 0.17 0.00
US High Yield Bond Fund Inst Acc $ 26.19 - -0.27 0.00 Schroder Property Managers (Jersey) Ltd Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 49000.00 - -614.00 0.00 Veritas Global Real Return Fund B EUR € 12.84 - -0.15 0.00 manager’s/operator’s name is the valuation point for
New World Financials (EUR) € 46.65 - 0.29 0.00 Other International Funds Trojan Ethical Income O Inc 97.67 - 1.18 - their unit trusts/OEICs, unless another time is
Strategic China Panda Fund USD $ 1969.26 - -17.32 0.00 indicated by the symbol alongside the individual unit
US Premium Equities (EUR) € 163.15 - -3.29 0.00 Indirect Real Estate SIRE £ 134.51 140.66 1.17 2.78 Trojan Fund O Acc ♦ 259.07 - 0.12 0.43 trust/OEIC name.
Strategic China Panda Fund Hedged EURO € 1923.60 - -17.09 0.00 Veritas Asset Management LLP
US Premium Equities (USD) $ 182.36 - -3.71 0.00 Trojan Fund O Inc ♦ 214.93 - 0.11 0.43 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
www.veritas-asset.com
Strategic China Panda Fund Hedged Sterling £ 1948.40 - -17.06 0.00 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Scottish Friendly Asset Managers Ltd (UK) Trojan Global Equity O Acc 217.93 - 1.15 0.89 Other International Funds
midnight. Daily dealing prices are set on the basis of
Santander Asset Management UK Limited (1200)F (UK) Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000
Strategic Euro Bond Accumulating Class CHFSFr 980.49 - -0.45 0.00 Real Return Asian Fund USD (Est) € 277.60 - -26.20 0.00 the valuation point, a short period of time may elapse
287 St Vincent Street, Glasgow G2 5NB, 0845 6000 181
Royal Bank of Scotland (2230)F (UK) Authorised Inv Funds Trojan Global Equity O Inc 185.64 - 0.98 0.90 before prices become available. Historic pricing: The
Authorised Funds letter H denotes that the managers/operators will
PO Box 23873, Edinburgh EH7 5WJ 0800 917 7072 Managed Growth ♦ 235.80 - 2.50 0.00 Strategic Euro Bond Institutional Class EUR € 1008.68 - -0.38 0.00 Real Return Asian Fund GBP (Est) £ 296.77 - -7.03 0.00
Santander Atlas Range Trojan Income O Acc ♦ 269.53 - 3.51 3.74 normally deal on the price set at the most recent
Authorised Inv Funds
Platinum Capital Management Ltd Real Return Asian Fund EUR (Est) $ 292.91 - -10.89 0.00 valuation. The prices shown are the latest available
Series 5 (Minumum Initial Investment £75,000) Santander Atlas Inc Port Acc Inst 281.70 - -0.50 - UK Growth ♦ 255.50 - 3.40 0.00 Strategic Euro Bond Fund Accumulating Class Shares € 1130.60 - -0.46 0.00
Other International Funds Trojan Income O Inc ♦ 170.73 - 2.22 3.86 before publication and may not be the current dealing
United Kingdom Equity Index Fund £ 14.25 - -0.09 3.15 Santander Atlas Inc Port Inc Inst 215.90 - -0.40 - Strategic Euro Bond Fund Distributing Class Shares € 1020.31 - -0.41 1.33 levels because of an intervening portfolio revaluation
Platinum All Star Fund - A (Est) $ 117.32 - - -
or a switch to a forward pricing basis. The
UK Specialist Equity Inc £ 17.89 - -0.15 0.43 Santander Atlas Port 3 Acc Ret 145.70 - -0.20 - Strategic European Smaller Companies Fund EUR Class € 909.08 - -28.10 - Waverton Investment Funds Plc (1600)F (IRL) managers/operators must deal at a forward price on
Platinum Global Dividend Fund - A (Est) $ 55.26 - - - SIA (SIA Funds AG) (LUX)
UBS Asset Management (UK) request, and may move to forward pricing at any time.
Regulated waverton.investments@citi.com
Contl Europe Specialist Fund £ 22.15 - -0.26 0.00 Santander Atlas Port 3 Inc Ret 100.50 - -0.10 - Strategic Global Bond RMB Acc $ 1051.70 - 5.89 0.00 21 Lombard Street, London, EC3V 9AH Forward pricing: The letter F denotes that that
Platinum Maverick Enhanced Fund Limited (Est) $ 93.98 - - 0.00 FCA Recognised
LTIF Classic € 293.35 - -1.73 0.00 Client Services 0800 587 2113, Client Dealing 0800 587 2112 managers/operators deal at the price to be set at the
Japan Specialist Fund X £ 14.64 - -0.09 0.00 Santander Atlas Port 3 Acc Inst 160.30 - -0.10 - Strategic Global Bond USD Acc $ 1048.55 - 0.09 0.00 www.ubs.com/retailfunds Waverton Asia Pacific A USD $ 15.65 - 0.16 5.23 next valuation.
LTIF Natural Resources € 61.22 - -0.44 0.00 Authorised Inv Funds
US Spec Equity Fund £ 18.09 - 0.04 0.00 Santander Atlas Port 4 Acc Ret 176.70 - -0.30 - Strategic US Momentum and Value Fund $ 695.69 - -11.35 0.00 Waverton Global Bond Fund Cls A $ 8.63 - 0.00 5.42 Investors can be given no definite price in advance of
OEIC the purchase or sale being carried out. The prices
LTIF Stability A ACCU € 152.93 - -0.70 0.00
Pacific Basin Specialist Equity Fund £ 35.92 - 0.56 0.97 Santander Atlas Port 4 Inc Ret 126.40 - -0.20 - Strategic US Momentum & Value Fund USD I Class $ 462.22 - -7.53 0.00 Global Emerg Mkts Eqty B Acc £ 1.20 - 0.02 1.76 Waverton Global Equity Fund A GBP £ 12.94 - 0.05 0.58 appearing in the newspaper are the most recent
provided by the managers/operators. Scheme
UK Sovereign Bd Index Fund £ 10.81 - -0.04 2.53 Santander Atlas Port 4 Acc Inst 160.60 - -0.20 - Strategic US Momentum and Value EUR Hedged Class EUR € 485.16 - -7.92 0.00 Global Optimal B Acc £ 0.93 - 0.01 0.64 Waverton UK Fund A GBP £ 12.49 - 0.21 1.85 particulars, prospectus, key features and reports: The
SIA (SIA Funds AG) (CH) most recent particulars and documents may be
UK Specialist Equity Income Fund £ 8.86 - -0.07 4.36 Santander Atlas Port 5 Acc Ret 182.90 - -0.30 - Other International Fds Strategic US Momentum and Value CHF Hedged Class CHFSFr 482.08 - -7.88 0.00 UBS UK Opportunities Fund B Acc £ 0.79 - 0.02 3.17 Waverton Equity Fund A GBP £ 13.73 - -0.07 0.19 obtained free of charge from fund
managers/operators. * Indicates funds which do not
Polar Capital Funds Plc (IRL) Global Emerg Mkts Equity Fund X £ 9.84 - 0.10 0.08 Santander Atlas Port 5 Acc Inst 155.30 - -0.30 - LTIF Stability Growth SFr 185.40 - -5.00 - US Equity B Acc £ 1.35 - 0.00 0.29 Waverton Sterling Bond Fund A GBP £ 9.40 - -0.01 5.31 price on Fridays.
Regulated
Global Spec Inv Grade Bd Fund GBP £ 9.59 - -0.03 3.03 Santander Atlas Port 6 Acc Ret 248.20 - 0.00 - LTIF Stability Inc Plus SFr 159.20 - -4.30 0.55 Taube Hodson Stonex Ptnrs UT (1200)F (UK) UBS S&P 500 Index C Acc £ 0.52 - -0.01 1.07 Charges for this advertising service are based on the
Asian Financials I USD $ 251.79 251.79 4.09 0.00 number of lines published and the classification of the
Series 6 (Investment Management Customers Only) 50 Bank Street, Canary Wharf, London E14 5NT
Santander Atlas Port 6 Acc X 177.20 - 0.00 - UBS Targeted Return B Acc £ 1.18 - 0.01 0.84 WA Fixed Income Fund Plc (IRL) fund. Please contact data@ft.com or
Biotechnology I USD $ 15.50 15.50 -0.36 0.00 Admin: 50 Bank Street, Canary Wharf, London E14 5NT
United Kingdom Equity Index Fund £ 14.07 - -0.08 3.86 Regulated call +44 (0)20 7873 3132 for further information.
Smith & Williamson Investment Management (1200)F (UK) Dealing & Enquiries: 0870 870 8433
Santander Atlas Port 6 Acc Inst 152.90 - 0.00 - UBS Sterling Corporate Bond Indexed Fund 50.78 - -0.26 3.29
European Income Acc EUR € 10.48 10.48 -0.02 0.00 UK Specialist Equity £ 18.10 - -0.14 1.70 25 Moorgate, London, EC2R 6AY 020 7131 8100 Authorised Inv Funds European Multi-Sector € 115.54 - -0.26 0.00
Santander Atlas Port 7 Acc Ret 191.10 - 0.00 - www.sandwfunds.com THS Growth & Value Funds UBS Multi Asset Income B Inc (net) £ 0.47 - 0.01 3.69
European Ex UK Inc EUR Acc € 8.96 8.96 -0.04 - Contl Europe Specialist Fund £ 22.93 - -0.27 1.26 Authorised Inv Funds International
Santander Atlas Port 7 Acc Inst 151.60 - -0.10 - UBS UK Equity Income B Inc Net £ 0.34 - 0.00 4.98
Financial Opps I USD $ 10.62 - -0.13 2.17 Japan Specialist Fund X £ 15.41 - -0.09 0.66 European Equity Fund A Class 498.20 - 9.20 0.72 IGV - Inc A 303.10 - 1.00 2.43
Authorised Inv Funds Corporate Bond UK Plus B Inc Net £ 0.51 - 0.00 4.00
GEM Growth I USD $ 7.41 - -0.04 0.00 US Spec Equity Fund £ 18.94 - 0.05 0.39 Far Eastern Income and Growth Fund A Class 415.00 - 2.60 3.05 IGV - Inc B 302.00 - 1.10 1.61
Max 70% Shs Acc Ret 162.60 - 0.90 -
UBS Global Allocation (UK) B Acc £ 1.02 - 0.01 1.46
GEM Income I USD $ 8.20 - -0.10 0.00 Pacific Basin Specialist Equity Fund £ 35.61 - 0.57 2.04 Fixed Interest Fund A Class 120.10 - -0.60 3.15 IGV - Acc X 369.80 - 1.30 1.90
Max 70% Shs Inc Ret 137.00 - 0.80 -
UBS Global Enhanced Equity Income C Inc £ 0.43 - 0.00 11.91
Global Alpha I USD $ 11.58 11.58 -0.24 0.00 UK Sovereign Bd Index Fund £ 10.94 - -0.04 2.53 Global Gold and Resources Fund A Class 126.80 - 0.20 0.00 IGV - Acc Y 396.90 - 1.40 2.39
Investments Inc Acc Ret 154.70 - -0.80 -
UBS US Growth Fund B Acc £ 1.47 - 0.00 0.00
Global Convertible I USD $ 10.86 10.86 -0.06 0.00 MM Endurance Balanced Fund A Class 202.40 - -1.10 1.18 IGV - Acc Z 367.20 - 1.30 1.62
Yuki International Limited (IRL)
UK Specialist Equity Income Fund £ 9.64 - -0.07 4.31 Investments Inc Inc Ret 102.00 - -0.50 - Tel +44-20-7269-0207 www.yukifunds.com
UBS Emerging Markets Equity Income B Inc £ 0.32 - 0.00 6.72
Global Insurance I GBP £ 4.06 - -0.02 0.00 Global Spec Inv Grade Bd Fund GBP £ 9.89 - -0.03 3.03 MM Global Investment Fund A Class 1994.00 - 12.00 1.90 European Regulated
Equity Inc Inc Inst 234.40 - 4.00 -
Yuki Mizuho Umbrella Fund
EGV - Acc S 260.60 - 1.50 0.00
Global Technology I USD $ 20.89 - -0.59 0.00 Global Emerg Mkts Equity Fund X £ 9.79 - 0.10 0.98 North American Fund A Class 1630.00 - -1.00 0.00
Equity Inc Inc Ret 200.80 - 3.40 - Yuki Mizuho Japan Dynamic Growth ¥ 6166.00 - 49.00 0.00
Address and telephone number for Series 5 only EGV - Acc Z 260.60 - 1.50 0.81 Unicapital Investments (LUX)
Healthcare Blue Chip Fund I USD Acc $ 9.96 9.96 -0.12 0.00 Oriental Growth Fund A Class 143.20 - 2.70 0.37
Equity Inc Acc Inst 141.60 - 2.50 - Regulated Yuki Mizuho Japan Large Cap ¥ 777.62 - -0.38 0.00
Continental
Healthcare Opps I USD $ 34.92 - -0.66 0.00 UK Equity Growth Fund A Class 385.00 - 5.40 0.65 Investments III € 5.03 - -22.38 -
N&P UK Gwth Inc Ret 157.90 - 2.40 - Yuki Japan Low Price ¥ 23593.00 - -13.00 0.00
CGV Acc S 107.50 - 0.80 0.06
Royal London Unit Managers Ltd. (1200) F (UK)
Income Opportunities B2 I GBP Acc £ 1.64 1.64 -0.02 0.00 UK Equity Income Fund A Class 212.20 - 1.80 4.82 Investments IV - European Private Eq. € 247.75 260.13 -44.58 -
5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777 Stckmkt 100 Track Gwth Acc Inst 85.54 - 1.46 - Yuki Japan Value Select ¥ 11123.00 - -15.00 0.00
CGV Acc X 106.00 - 0.70 0.00
Japan Alpha I JPY ¥ 188.72 188.72 0.56 0.00 Authorised Inv Funds Investments IV - Global Private Eq. € 366.42 384.74 -49.81 -
Stckmkt 100 Track Gwth Acc Ret 159.10 - 2.70 - YMR Umbrella Fund
Royal London Sustainable Diversified A Inc £ 1.54 - 0.01 2.01 CGV Inc A 107.10 - 0.80 -
Japan I JPY ¥ 1856.45 - 9.29 0.00 Smith & Williamson Fd Admin Ltd (1200)F (UK) YMR N Growth ¥ 16653.00 - 37.00 0.00
UK Growth Acc Inst 276.60 - 4.20 -
Royal London Sustainable World A Inc 167.10 - 1.30 0.82 25 Moorgate, London, EC2R 6AY 0141 222 1150 CGV Inc B 107.10 - 0.80 -
Yuki Asia Umbrella Fund
North American I USD $ 16.22 16.22 -0.38 0.00
UK Growth Acc Ret 320.20 - 4.80 - Authorised Inv Funds Unicorn Asset Management Ltd (UK)
Royal London Corporate Bond Mth Income 87.64 92.25 -0.36 4.21 PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287 Yuki Japan Rebounding Growth Fund JPY Class ¥ 21119.00 - 17.00 0.00
UK Absolute Equity I GBP £ 12.95 12.95 0.03 0.00 S&W Deucalion Fd (OEIC) 1988.00 - -57.00 0.28 Authorised Inv Funds
UK Growth Inc Ret 211.00 - 3.20 -
Royal London European Growth Trust 107.50 113.20 1.60 0.40 The Hartford International Funds (IRL) Yuki Japan Rebounding Growth Fund USD Hedged Class $ 836.50 - 0.78 -
Managed OEIC S & W Magnum 366.10 386.80 1.80 1.92 Regulated UK Growth A Inc 398.63 - -1.27 0.00
Royal London Sustainable Leaders A Inc 445.20 - 5.40 1.36
Polar Capital LLP (CYM) Glob Em Shs Port Acc Ret 141.70 - 0.00 - S & W Marathon Trust 178.40 188.80 0.80 1.74 Gbl Govt Bond (Ex Japan) Index (GBP) £ 1680.36 - -2.57 0.00 Mastertrust A Inc X F 351.04 - 1.72 0.07
Regulated Royal London UK Growth Trust 454.30 478.20 6.80 1.45 Zadig Gestion (Memnon Fund) (LUX)
Max 70% Shs Port Acc Ret 247.50 - -0.10 - UK Corporate Bond £ 1571.69 - -8.38 0.00 UK Growth B Inc 400.29 - -1.26 0.56 FCA Recognised
ALVA Convertible A USD $ 128.64 - -0.21 0.00
Royal London UK Income With Growth Trust 213.00 224.20 2.20 4.46
Max 70% Shs Port Acc X 177.70 - -0.10 - Standard Life Wealth (JER) Gilt £ 1594.35 - -9.06 0.00 Mastertrust B Inc X F 314.98 - 1.54 0.89 Memnon European Fund I GBP £ 108.39 - -1.03 0.00
European Conviction A EUR € 144.65 - 3.79 0.00
Royal London US Growth Trust 140.20 147.40 0.00 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
Max 70% Shs Port Acc S 143.80 - 0.00 - Global Eq (Ex Japan) Index Fund ¥ 1.26 - 0.00 0.00 Outstanding British Cos A Acc X F 248.06 - 0.75 0.64
European Forager A EUR € 178.02 - 3.04 0.00 FCA Recognised
Additional Funds Available
Investment Port Acc Ret 231.70 - -1.00 - Standard Life Offshore Strategy Fund Limited Global Eq (ex Japan) Class HJ4 ¥ 1.31 - 0.00 0.00 Outstanding British Cos B Acc X F 259.47 - 0.78 1.37 Zebedee Capital Partners LLP (CYM)
Please see www.royallondon.com for details
Bridge Fund £ 1.5517 - 0.0087 1.93 Regulated
Investment Port Acc X 164.30 - -0.60 - Global Eq (ex Japan) Class JP5 ¥ 1.36 - 0.00 0.00 UK Smaller Cos A Inc X F 426.11 - -1.32 0.35
Polunin Capital Partners Ltd Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
Diversified Assets Fund £ 1.1486 - 0.0021 3.03
Other International Funds Max 50% Shs Port Acc Ret 239.00 - -0.50 - Global Eq Ex Japan Index Fund (Hedge) ¥ 1.24 - 0.00 0.00 UK Smaller Cos B Inc X F 416.96 - -1.28 1.22
Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Global Equity Fund £ 1.8155 - 0.0093 0.64
Emerging Markets Active $ 40.75 - 0.67 - Max 50% Shs Port Inc Ret 212.10 - -0.40 - Gbl Govt Bond (Ex Japan) Index ¥ 1.29 - 0.00 0.00 UK Income A Acc X F 251.11 - -2.96 3.82
Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Global Balanced Fund - Income Units £ 1.3126 - 0.0076 2.10
Luxcellence Em Mkts Tech $ 855.55 - -37.19 0.00 Max 50% Shs Port Acc X 173.00 - -0.40 - Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.26 - 0.00 0.00 UK Income A Inc X F 223.30 - -2.63 3.91
Global Balanced Fund - Accumulations Units £ 1.5358 - 0.0089 2.07
Polunin Developing Countries $ 638.66 644.09 -17.56 0.00 Max 50% Shs Port Acc S 144.90 - -0.30 - Japan Equity Index Fund ¥ 0.96 - 0.00 0.00 UK Income B Acc X F 266.94 - -3.14 3.80
30 ★ FINANCIAL TIMES Wednesday 20 January 2016

MARKETS & INVESTING

Commodities
FT explainer

Output levels, not China, to

blame for metals’ hard time
Falling commodity prices
have been treated as one
of the clearest indications
available that China’s
resource-hungry economy
is slowing, writes Henry
Sanderson.
Yet the latest data on
metals consumption paint
a more nuanced picture,
with demand still rising
although at a reduced
pace.
Copper has halved in
price since its peak in 2011,
but China’s consumption is
estimated to have grown
1.8 per cent last year,
according to a report
from HSBC.
While that rate of growth
may not be as strong as in
previous years — or as
strong as mining
executives hoped when
they invested in additional
supplies — it shows
demand is still robust.
That suggests much of
the collapse in prices has
been driven by oversupply
following years of
investment by mining
companies.
When viewed in tonnage
rather than percentage
terms, copper consumption
in China actually rose
last year by an amount
similar to the rise a decade
ago, when the implications
of rapid industrialisation
first became clear for
1.8%
Last year’s estimated
growth in China’s copper
consumption; in 2009
the figure was 27.5%. But
in tonnage terms the
increase is similar to that
seen a decade ago
commodity markets. So
after 10 years of rapid
expansion, China’s
commodity demand is
growing from a much
higher base.
Last year the country
consumed almost the same
amount of copper as the
entire western world,
compared with 7 per cent
in 1990.
Rising demand alone is
likely to provide only cold
comfort for mining
executives faced with
falling prices, however,
because it is unlikely to
match supply.
Global copper mine
production is still growing,
with the Las Bambas
facility in Peru shipping its
Chinese demand
is still growing...
Megatonnes
Aluminium
Copper
Nickel
Zinc
2000 05 10
Sources: CRU, Wood Mackenzie, HSBC estimates
first copper to China this
month. HSBC forecasts
that supply will grow 1 per
cent this year and
2.9 per cent in 2017.
Analysts at Goldman
Sachs, who have been
some of the most bearish
on metals, said in a recent
report that the decline in
commodity prices was not
the result of “cyclical
demand weakness”.
They added: “Physical
commodity demand shows
no material deterioration
from recent levels, even for
metals in China.”
In the case of aluminium,
a lightweight metal used in
cars and drink cans, China
is expected to have
consumed 28m tonnes last
year, a 6 per cent rise on
2014, according to HSBC.
But demand will
continue to be closely
watched in what is
undoubtedly the biggest
metals consumer.
Between 2000 and 2015,
China’s demand for copper
grew by a compound
annual growth rate of
12 per cent.
For nickel, which is used
in the manufacture of
stainless steel, the
Chinese demand uptick
was 20 per cent.
In the western world
copper demand fell 0.8 per
cent; for nickel it slipped
0.9 per cent.
In 2000 China’s copper
consumption was 23 per
cent higher than the
previous year. In 2009 it
rose 27.5 per cent.
Percentage growth
figures of this kind are
almost certainly gone for
good. The market is
waiting for signs that
producers will be prepared
to make deep cuts to
production to help prices
stabilise or recover.
With prices where they
are, participants will not
have to wait long.
The copper price has
fallen 57 per cent since its
peak in 2011 to trade at
$4,420 a tonne, its lowest
level in more than six
years. That has led miners
to announce more than
300,000 tonnes of
cutbacks in production.
Macquarie forecasts that
the figure will exceed
900,000 tonnes this year.
Nickel prices fell to their
lowest level since 2003 this
month. More than two-
thirds of producers are
estimated to be making a
loss at these prices.
“Clearly something has
to give,” said analysts at
Macquarie. “And that thing
is supply.”
...but at a much slower
rate in recent years
Annual % change in demand
30 Aluminium Nickel 25
Copper Zinc
20
20
15
10
10
5 almonds were taken out from products
0 0
15 2011 12 13 14 15
IEA issues stark ‘oversupply’ warning
Iranian output threatens
further oil price collapse
as it offsets cuts elsewhere
ANJLI RAVAL
The oil market “could drown in over-
supply” as a rise in Iranian output off-
sets production cuts elsewhere, threat-
ening a further price collapse, the lead-
ing energy forecaster has said.
In a stark assessment of the chal-
lenges facing the industry, the Interna-
tional Energy Agency warned yesterday
of an overhang of at least 1m barrels a
day for a third consecutive year in 2016.
Production outside OPEC would fall
this year, the IEA said. But that would be
offset by slower demand growth and
higher production from Iran now that
sanctions linked to its nuclear pro-
Almond trade crushed after bumper crop
Buyers refuse cargoes as
record price build-up leads
to a crack in global demand
EMIKO TERAZONO
After several years of defying gravity,
the almond market has been crushed.
The price of standard almonds, which
hit a record high of $4.70 a pound last
August, has almost halved to $2.60 after
last year’s larger harvest than expected.
The surge in prices depressed
demand, and buyers in China, the Mid-
dle East and India, who had led con-
sumption for three or four years, disap-
peared.
As prices then declined, buyers
refused to honour contracts and the
number of rejected containers jumped.
Trading has ground to a halt.
“It’s a bloodbath,” says Ago Dermen-
jian at Derco Foods, a nut trader based
in California.
Almond prices have risen since 2009
as tree nuts have grown in popularity.
Reports of health benefits boosted con-
sumption growth among the growing
middle classes in developing countries
such as China. Meanwhile interest in the
so-called Mediterranean diet, which
includes nuts, fuelled consumption in
developed markets.
This surge in demand coincided with
a multiyear drought and water shortage
in California, which accounts for about
80 per cent of the world’s almond sup-
plies, leading to concerns about produc-
tion levels. At the same time problems
in US ports led to a delay in shipments
last year, tightening the market.
Growers held on to their crops in the
hope of getting a better price, support-
ing prices, say industry executives.
But the relentless rise in the almond
market eventually eroded demand.
Ashok Krishen, global head of edible
nuts at Olam, the agricultural commod-
ities trader, says: “Emerging market
demand with less price inelasticity
began to fall at first and was followed by
the traditional developed markets
towards the end of 2015.”
In Europe many snack producers and
foodmakers reduced the number of
almonds used as ingredients or in bags
of mixed nuts.
“We had such high prices that a lot of
and almond packs were reduced in
size,” says Michael Stevens, an almond
trader at Freeworld Trading, based in
Edinburgh. “All of that has damaged
demand.”
gramme had been lifted. “Unless some- Oil, which sank to fresh 12-year lows
1m from the powerful OPEC member could
thing changes, the oil market could this week below $28 a barrel, rebounded be flowing to world markets by March.
drown in oversupply,” the energy yesterday as hedge funds took profits. Total supply This comes amid the first year-on-
overhang in barrels
watchdog said in its monthly report. The global Brent benchmark rose $1.58 a day forecast for a year fall in non-Opec supply — of
If Iran — a powerful member of the to $30.14 a barrel while US marker West third successive 600,000 b/d in 2016 — since at least
producers’ group — moved quickly to Texas Intermediate was up 65 cents to year in 2016 2012. Last year production from outside
offer its oil under attractive terms and $30.07 a barrel. Robust data on Chinese the group, led by the “stubbornly robust
its OPEC peers such as Saudi Arabia oil consumption provide a further prop. 1.2 m US”, grew 1.3m b/d from the previous
refused to “stay on the sidelines”, prices Oil prices have tumbled almost 75 per Drop in global year to 57.6m b/d.
could lurch lower, the IEA said. cent in 18 months as the largest pro- demand forecast OPEC production — led by Saudi Ara-
In this scenario there would be enor- ducer countries have refused to give for this year, bia and Iraq — averaged 32m b/d in
mous strain “on the ability of the oil sys- ground. Global oil stocks rose by 1bn down from 1.7m b/d 2015, some 1m b/d more than 2014.
tem to absorb” the glut. barrels in 2015 from the year before and in 2015 “OPEC has effectively been pumping
“The exact pace of the flow is hard to the IEA has forecast a further increase of at will since late 2014,” said the IEA, pre-
tell, but Iran is showing they are back in 285m barrels over the course of 2016. dicting output this year from the cartel
the game,” said Neil Atkinson, the new “This stock build will put storage “well beyond 32m b/d.”
head of the IEA’s oil division. infrastructure under pressure and could Separately, while there had been “one
“Saudi Arabia and others are going to see floating storage become profitable,” of the highest volume increases in global
ensure they don’t lose out. They are not the Paris-based watchdog added. oil demand this century” in 2015, the
going to give up the fight and say ‘wel- Iran has vowed to boost output by IEA forecast a lower rate this year, with
come back’. For all intents and pur- 500,000 b/d. The IEA estimates that demand growth moderating from
poses, this is a free market.” about 300,000 b/d of additional crude almost 1.7m b/d in 2015 to 1.2m b/d.
Analysis. Commodities
Case of indigestion
Almonds
Spot price blanchable standard 5% ($ per lb) Total shipments (lb, m)
5 2000
4
1500
3
1000
2
500
1
0 0
2001-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
FT graphic Sources: Derco Foods: The Almond Board of California
‘You have Heavy rainfall and even snow in Cali- ket, where supplies looked tight in per- food remains intact, then the long-term
fornia, resulting from the El Niño petuity, to a market that looks largely supply and demand trajectory should
gone from weather phenomenon, added to the oversupplied,” says Giles Hacking, man- not have changed.
a bullish bearish sentiment. aging director of CG Hacking, a nut With prices at a three-year low, some
market, where Confidence was further hit by the trader based in London. industry participants are hopeful that
release of fresh industry data this The price fall has led to a sharp rise in demand will return. Mr Krishen says
supplies month. The latest numbers from buyers reneging on purchase agree- the Californian almond industry is well
looked tight in the Almond Board of California reveal a ments, or “defaults” as they are known equipped to cope with turmoil. “[It] has
perpetuity, to fall in shipments for the first five in the commodities world. Importers in worked through bigger crops than this
months of the marketing year from India, China and Dubai are have all without any major change.”
a market that August. Total shipments were 12 per refused to accept almonds they have If the rains and storms continue in
looks largely cent lower than a year before, with agreed to buy. California, disrupting pollination, 2016
oversupplied’ exports down 15 per cent as higher Tighter financing from banks in the production could be hit, providing sup-
prices bit. Middle East in the face of falling oil port for almond prices.
Crop data defied expectations. prices has hit Dubai-based importers But in the short term, says Mr
Despite worries about a smaller crop particularly hard, say traders. Krishen, for prices to return to more
because of the heat and lack of water, “There have been a lot of defaults, normal levels the distressed cargoes
sales of the harvest in the five months to especially in Dubai,” says Mr Stevens. need to move through the supply chain
December were 2.5 per cent higher than Some of these contracts will be pur- and be sold.
in 2014 at 1.85bn pounds, beating fore- sued through the courts or arbitration, Mr Dermenjian agrees, and is waiting
casts of 1.8bn. but many cases will be abandoned, with for the fear factor to recede. “There is
The industry expects a final 2015 crop exporters and traders bearing the losses pent up demand out there but people
of about 1.9bn pounds, based on histori- for unsold nuts. are afraid to get back into the market at
cal trends. If, as industry executives hope, the even these levels if they think prices will
“You have gone from a bullish mar- case for nuts and almonds as a health fall lower,” he says.

Currencies Capital markets

Dollar bulls look forward to rise of the robots
GILLIAN TETT — DAVOS
Accelerating digital innovation may
well lead to a strengthening of the dol-
lar and the dollar-based economies at
the expense of emerging markets such
as China, UBS has warned.
As global industries make fuller use of
robots and computers, developed coun-
tries that have flexible labour markets,
such as the US, Singapore, Finland and
Switzerland, will have a growing advan-
tage, according to the Swiss bank.
“Developing economies face greater
challenges as their abundance of low-
skill labour ceases to be an advantage
and becomes a headwind,” the UBS
report warned.
The US dollar has risen sharply this
year against EM rivals, including the
South African rand, Russian rouble,
Mexican peso and Turkish lira. Pressure
on currencies pegged to the dollar, nota-
bly the Saudi riyal, has also increased.
“The US competitive advantages and
reserve-currency status may lead to fur-
ther strengthening of the dollar, exacer-
bating challenges for dollar-linked
developing markets,” said the bank.
Its report adds an unusual dimension
to the debate in the investment commu-
nity about the economic and invest-
ment implications of automation.
The debate, until recently mostly the
preserve of economists and IT special-
ists, is the official theme of the World
Economic Forum, whose annual meet-
ing began in Davos yesterday.
In the past couple of years, those con-
sidering the topic have focused on jobs
in developed markets. Last year a report
from the Oxford Martin school warned
that robots could replace half of all US
jobs in the next couple of decades. Ana-
lysts say similar patterns could unfold in
Europe and Japan.
It has hitherto gone largely unnoticed,
however, that digitisation will also wipe
out jobs in emerging countries such as
China and India.
UBS’s economists say the displace-
ment could be more — not less — intense
in the developing world because econo-
mies there rely more on low-skilled
work, which can be easily replicated
by robots.
Automation could deliver a big boost
to growth in places such as the US, help-
ing to strengthen its currency in the
medium term. Indeed some economists
suspect that this pattern is already sup-
porting growth, enabling US companies
such as Alcoa and General Electric to
engage in “reshoring” of their factories,
bringing production lines back to the US
from emerging markets.
Investors shun riskier assets for quality names
GAVIN JACKSON
European bond markets have been
open only to the most highly regarded
companies in 2016, as global market
turmoil has compelled investors to
shun riskier assets.
Only nine deals have been priced for a
total value of €6.2bn in 2016, according
to Thomson Reuters, and bond sales
have largely come from such household
names as carmaker Daimler, food
company Nestlé and the US-based
baker General Mills.
“It is fair to say the corporate space
has been in less supply due to the volatil-
ity from China and the fact that many
corporates are turning to blackout peri-
ods now,” said Armin Peter, global head
of debt syndicate at UBS, referring to
regulations that prevent companies
from selling new securities while they
are preparing their quarterly results.
Pointing to strengthening stock mar-
kets yesterday as a positive sign, he
added “what the market clearly needs is
a couple of positive trading sessions to
regain confidence”.
Recent weakness has not been limited
to the so-called primary market. Prices
for outstanding corporate debt have suf-
fered as well, resulting in higher yields.
Spreads — the premium that corpo-
rate borrowers have to pay over under-
lying government bond yields — have
climbed to their highest levels since
2012 for both high-yield and investment
grade-rated companies, indicating an
increasing investor aversion to risk.
Both debt bankers and investors
attribute lower prices to an increase in
risk aversion generally and not to spe-
cific problems with European debt.
The European Central Bank’s
programme of quantitative easing as
well as the region’s current economic
recovery are seen as supporting pros-
pects for companies and their debt secu-
rities. Investors are said to be taking a
“wait and see” approach due to the fall-
ing commodity and equity prices.
Jeff Mueller, a high-yield portfolio
manager with Eaton Vance, said while
the most heavily affected sectors are
those with high exposure to China and
oil and commodity prices, unrelated
industries are also having their debt
priced lower.
“What you have in the market, you’ve
got this bifurcation where you’ve got
the . . . higher quality, the stuff that
people want to own, that hasn’t done
badly.” he said. “There are some oppor-
tunities but you really need to do your
homework and pick the credits that
have been sold more than they deserve.”
Wednesday 20 January 2016 ★ FINANCIAL TIMES 31

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Jamie
Chisholm
China data relieve the gloom amid S&P 500 index
Change on day 0.17%

choppy trading for oil and equities

One talking point during the new year
stock market rout was the relative
calmness in the CBOE Vix index.
The Vix is a measure of implied
volatility for the S&P 500. Because it
tends to rise more when equities are
falling sharply but retreat when the
market is rallying swiftly it has become
known as Wall Street’s “fear gauge”.
The Vix closed last week at 27 after
the S&P 500 dropped 2.2 per cent in
one session, the culmination of a
savage sell-off at the start of 2016.
Yet such a battering for the S&P
might be expected to cause a much
greater rise for the Vix. During the
stock market’s dive of a similar pace
and magnitude in August the gauge
spiked above 50 intraday.
Does the Vix’s relative lack of fear
indicate investors are actually more
relaxed than commentators think?
Analysts’ opinions are mixed. Ashraf
Laidi at Intermarket Strategy thinks
the Vix’s meek display compared with
last summer is because back then the
market was not prepared for the
Chinese market ructions that came
alongside nervousness over a looming
Federal Reserve rate rise.
“Today, the sources of market sell-
off and macro deterioration are not
necessarily new or unexpected,” he
says.
But others think the Vix is relatively
relaxed mainly because traders are
increasingly using Treasuries as a
hedge against equity angst.
UniCredit notes the inverse 25-day
correlation between the S&P 500 and
the 10-year bond has gone to 80 per
cent, the most in two years.
jamie.chisholm@ft.com
CBOE VIX volatility index
40
30
20
10
Jan 2015 Jan
2016
Source: Thomson Reuters Datastream
Prospect of Beijing moves
in focus after Shanghai
Composite jumps while
Brent and copper rise
and havens suffer
DAVE SHELLOCK
Risk appetite showed tentative signs of
improvement as the latest batch of Chi-
nese economic data lifted some of the
gloom that has enveloped global mar-
kets since the start of 2016.
But the choppy nature of trading —
particularly on Wall Street and in the oil
markets — highlighted a continued
sense of unease among participants that
the worst might not be over.
Indeed the S&P 500 index of US equi-
ties pared an early advance of more
than 1.1 per cent to stand 0.7 per cent
higher at 1,893 by midday in New York.
The Nasdaq Composite index briefly
turned negative before recovering to
stand 0.4 per cent higher.
Across the Atlantic the pan-European
Stoxx 600 finished 1.3 per cent higher
— also well off its earlier peak — while
the Nikkei 225 in Tokyo gained 0.6 per
cent.
The day’s stock market gains came as
oil prices briefly regained the $30-a-
barrel mark, only to swing back below
that level in very volatile trade.
Brent crude was trading at $29.21, up
2.2 per cent on the day, as European
dealers began leaving their desks, while
US West Texas Intermediate was 0.9 per
cent lower at $29.19.
In a similar vein, copper touched a
one-week high in London of $4,476 a
tonne before edging back to $4,435, up
1.4 per cent on the day.
The better tone to industrial com-
modities came after data revealed
China’s economy growing at an infla-
tion-adjusted pace of 6.9 per last year.
Although that was the slowest annual
How Iran returns to the oil market: FT.com/video
Richard Mallinson of Energy Aspects and the FT’s Anjli Raval
examine the production outlook after the lifting of sanctions
rate of growth since 1990, it was in line
with the government’s target of “about
7 per cent”.
Miranda Carr, analyst at Haitong
Securities, said: “China’s economic data
today showed it is not on the verge of all-
out collapse, but there is still substantial
lifting required to stabilise the economy
by the second quarter.”
There appeared to be a widespread
view in the markets that the data were
likely to prompt the Chinese authorities
to adopt further stimulus measures to
bolster growth. The Shanghai Compos-
ite index jumped 3.3 per cent.
But some analysts took a more cau-
tious view. “As China transitions to a
consumption-driven economy, a slow-
— Vahid Salemi/AP Photo
down is inevitable, and will drag down
global growth,” said Alberto Gallo, head
of global macro credit research at RBS.
“This slowdown is set to continue,
given China’s limited remaining policy
dry powder.
“Although it appears sufficient, it is
only just enough to cover potential capi-
tal flight and losses in the Chinese bank-
ing system and state-owned corporates,
rendering a 2008-style stimulus unaf-
fordable.”
Divyang Shah, global strategist at IFR
Markets, noted that while China’s
annual real GDP growth rate in 2015
was 6.9 per cent, its nominal growth was
6.4 per cent — highlighting a negative
GDP deflator. “This wider measure of
2100
2000
1900
1800
Dec 2015 2016 Jan
inflation in the economy is considered US equities The S&P 500 turned
more accurate than looking at the con- choppy as signs of caution began to
sumer price or producer price indices,” emerge on Wall Street after a strong
he said. start. Energy and basic materials
“This deflation is keeping a lid on glo- stocks lagged behind the wider market
bal inflation and creating persistently
low inflation that goes beyond commod- FTSE 100 index
ity prices. Change on day 1.68%
“China’s disinflation will probably 6400
mean further stimulus from the Euro-
pean Central Bank, a very shallow Fed- 6200
eral Reserve tightening cycle, and the 6000
Bank of England delaying [interest rate] 5800
lift-off into 2017.” Dec 2015 2016 Jan
Indeed sterling touched a seven-year
low against the dollar after Mark Car- UK equities HSBC provided the
ney, governor of the BoE, said the UK biggest individual contribution to the
economy was not yet strong enough to FTSE 100’s rise as the bank’s shares
weather a rate rise. climbed 1.9 per cent, while the mining
“In this speech Mr Carney pointedly sub-index rose 2.1 per cent
gave no timeframes for possible BoE
action but highlighted three key devel- Eurofirst 300 index
opments that need to occur for an inter-
Change on day 1.37%
est rate hike to be warranted,” said 1450
Howard Archer, chief UK economy at 1400
IHS Global Insight. 1350
“These are sustained growth relative
1300
to trend — so as to eliminate spare
1250
capacity in the economy — rising
Dec 2015 2016 Jan
domestic cost pressures, and core infla-
tion moving towards the target. European equities The Eurofirst 300
“He clearly has concerns about the bounced off a 13-month low as it
risks to the UK outlook coming from the snapped a three-day run of losses,
global economy, particularly China and with the industrial metals sector
other emerging market economies.” leading the advance
The pound hit $1.4131 before edging
back to $1.4172, still down 0.5 per cent
on the day. The UK currency was down Nikkei 225 index
0.7 per cent versus the euro at €1.2981. (’000) Change on day 0.55%
20
A broad shift towards riskier assets
weighed on perceived “havens”. 19
The 10-year US Treasury yield, which 18
moves inversely to its price, rose as high
as 2.09 per cent before slipping back to 17
Dec 2015 2016 Jan
2.04 per cent, up 1 basis point, while the
10-year German Bund rose 2bp to 0.55 Japanese equities The Nikkei ended
per cent, according to Bloomberg data. higher for the first time in four days as
The dollar was up 0.3 per cent versus participants took some reassurance
the yen at Y117.63, while gold slipped $2 from the latest Chinese economic data
to $1,086 an ounce.

Hays BHP Billiton was up 3 per cent to

London
Hays in demand as
traders talk of bid from
Adecco or Randstad
Bryce Elder
Hays bounced off a 15-month low amid
a reheat of speculation that it might be
vulnerable to a bid from a sector peer.
The FTSE 250-listed staffing group
was up 3.7 per cent to 117.6p on talk
among traders that it could be a target
for Adecco or Randstad, the world’s
biggest recruitment groups.
Similar theories have popped up
frequently since 2003, when Hays sold
its logistics unit, though investors have
questioned whether any buyer would
be willing to pay a premium to its
£1.7bn market value while earnings
visibility is poor.
Adecco said at an investor day on
Monday it intended to make
acquisitions in areas including
professional staffing and process
outsourcing this year, but that deals
were likely to be bolt-ons funded from
Share price (pence) 627.1p, with Credit Suisse repeating an Trading Directory
180 “outperform”. The broker speculated
160 that BHP could soften the impact of any
140 dividend cut by introducing a scrip
120 dividend plan, which it said would be a
100 “cute method of raising cheap equity”.
Jan 2015
Source: Thomson Reuters Datastream
Jan
2016
The 50 per cent dividend cut expected
by the consensus would save BHP only
Day's
$3.3bn a year, which at spot prices might
Indices
FTSE 100
Close
5876.80
change
96.88
not be enough, said Credit Suisse. But a
so-called dividend reinvestment plan —
FTSE 250 16114.56 155.75 which offers investors a tax benefit if
FTSE 350 3279.37 50.15 they trade new shares for their cash
FTSE All-Share 3231.53 47.61 dividends — could save up to $6.6bn and
FTSE All-Share Yield 3.98 - make the company free cash flow
FTSE 100 Futures 5815.50 87.50 positive, it said.
10 yr Gilt Yield 2.53 -0.29
Russian steelmaker Evraz rallied
20yr Gilt All-Share Ratio 0.61 -
5.8 per cent to 62p on a better than
expected quarterly production report.
surplus capital. Randstad has said in House broker Morgan Stanley advised
investor meetings that while using the rally to sell, calling Evraz a
acquisitions will be a focus for 2016, high-cost and highly levered producer
all the targets in its pipeline are exposed to a bleak domestic market.
sub-€500m. A short squeeze meant online grocer
The wider market broke a three-day Ocado rallied from a one-year low, up
losing streak, with the FTSE 100 up 6.8 per cent to 259.1p, following another
1.7 per cent, or 96.88 points, at 5,876.8. airing for speculation about a potential
Housebuilders gained after a dovish tie-up with Amazon. Nearly 20 per cent
speech from Mark Carney, governor of of Ocado’s free float is on loan to short
the Bank of England, reinforced sellers, the highest since 2012, Markit
expectations that the first UK interest data show.
rate rise will not be until 2017. Berkeley BAE Systems faded 0.6 per cent to
Group rose 4.1 per cent to £35.72, 506p on a downgrade to
Persimmon took on 3.9 per cent to “underperform” from Credit Suisse.
£19.57 and Taylor Wimpey advanced The aerospace and defence company
2.8 per cent to 184.8p. had outperformed its US peers by 15 per
Anglo-German travel operator Tui led cent since a White House budget
the FTSE 100 risers, up 5.6 per cent to agreement in late October, even though
£12.36, as the euro hit a one-year high it had benefited less from the deal, said
against sterling. the broker.

Wall Street
Tiffany tarnished by
effect of strong dollar
Adam Samson
Tiffany said yesterday its holiday-
season sales had fallen because of the
strong dollar and “constrained
consumer spending”. The news sent the
shares sliding.
The high-end jewellery company said
sales in the two months through
December 31 had dropped 6 per cent
year on year to $961m. On a constant-
currency basis, revenues had slipped
3 per cent as a drop in the Americas and
Asia-Pacific regions offset growth in
Japan and Europe.
Frederic Cumenal, chief executive,
said Tiffany “continued to feel pressure”
from a strengthening US currency,
which trims the value of sales earned
abroad when they are converted back
into dollars and makes US goods more
expensive to foreign tourists.
The New York-based company said it
expected earnings in the year through
January 31 to have declined 10 per cent
from the previous fiscal year, compared
with an earlier outlook of a drop of 5 to
10 per cent. Wall Street analysts were
expecting a 7.7 per cent decline.
Tiffany’s shares slid 4.7 per cent
yesterday to $64.50, making the
company the biggest decliner on the
S&P 500. Its shares have slumped
nearly 30 per cent in the past 12 months.
UnitedHealth, the big health insurer,
climbed after it revealed better
quarterly profits than expected. Net
income fell to $1.25bn in the fourth
quarter, from $1.51bn in the period in
2014. Adjusted earnings per share of
$1.40 beat Wall Street forecasts of $1.38.
Profits in the Optum health services
group jumped to $1.5bn in the fourth
quarter from $1bn in the period in 2014.
That offset a $245m charge in
recognition of expected losses from its
Affordable Care Act exchange business.
UnitedHealth shares rose 3 per cent to
$112.58 yesterday, and are up 6.4 per
cent over the past 12 months.
Morgan Stanley rose after better than
expected quarterly profits. The
investment bank is betting on a focus on
wealth management instead of trading.
The shares rose 1.9 per cent to $26.46,
cutting the 12-month loss to 24 per cent.
Johnson & Johnson unveiled a
restructuring in its medical devices
business, which it forecast would result
in annualised pre-tax cost savings of
$800m to $1bn. The group will take a
charge of $2bn to $2.4bn as a result. J&J
shares rose 0.6 per cent to $97.60 and
dropped 6.2 per cent over the past year.
In late-morning trading, the S&P 500
was up 0.7 per cent to 1,893, the Dow
Jones Industrial Average was also up
0.7 per cent to 16,100.53 and the
Nasdaq Composite had advanced
0.4 per cent to 4,507.92.
32 ★ Wednesday 20 January 2016

INSIGHT Analysis. Currencies

John
Plender
Stronger yen lays bare Japan’s vulnerabilities
Rising strength against dollar Japan’s 10-year government
bond
is a blow to Abenomics after
Divergence favours 10% fall in equities this year
Yield (%)

0.50
the bold as the central LEO LEWIS AND ROGER BLITZ
0.45

bank drumbeat fades At any time in the past three years in

Japan, whenever the great Abenomics
0.40
0.35
revival story has wobbled, a weakening 0.30

T
yen has ridden to the rescue. 0.25
here comes a time in the life of a mature bull But as equity markets scrabble for 0.20
market when positive economic shocks are a foothold and fund redemptions Jan 2015 Jan
required to sustain momentum. The trouble mount, the currency may be about to 2016
with 2016 is that the shocks have been mainly desert Japan’s prime minister when he
negative, with the result that equities and needs it most.
Yen
other risky assets have reacquainted themselves with the For the first time since Shinzo Abe Rebased
Trade weighted 106
laws of gravity. Since the start of the month volatility has took power in December 2012, specula-
been the order of the day. tive money — as tracked by currency Against the $ 104
Against the euro
The biggest scare story has been about slowing global futures traded on the Chicago Mercan-
growth and the fear of a crash landing in China and other tile Exchange — is backing a stronger 102
emerging economies. The experience of last August, with yen against the US dollar. 100
the bungled devaluation of the renminbi and botched In conjunction with Abenomics, a
attempt to bail out the Chinese equity market, has been weaker yen in recent years has boosted 98
repeated this January, but with increased concern that fur- Japanese company profits and even 96
ther devaluation could precipitate a fresh round of cur- the thornier reforms — such as the cor- Oct 2015 Jan
rency warfare. Investors have also worried that China’s porate governance code — have seemed 2016
transition to a consumption-based growth model is prov- that bit more palatable.
Source: Thomson Reuters Datastream
ing more difficult than expected, with spiralling debt and The build-up of speculative bets
the rickety balance sheets of state-owned enterprises. favouring a stronger yen, some traders
In the US investors are worried about decelerating cor- suspect, will prove temporary. But a No help coming: positioning, he says, implies a more risk of overstating the impact on corpo- However, the pivotal event encourag-
porate earnings and fear that the Federal Reserve’s tighter psychological blow to Abenomics has Shinzo Abe, open confidence in yen strength and, by rate Japan, he says. ing investors to buy the yen, says Yuno-
policy will push the economy into recession. As for Europe been struck and vulnerabilities laid prime minister, definition, in the Bank of Japan’s inabil- Currency strategists might have been suke Ikeda, chief FX strategist at
the structural problems of a monetary union that lacks the bare. has become used ity to do much about it over coming surprised by the yen’s surge, but they Nomura, was the supplementary meas-
fiscal and financial infrastructure to sustain a single cur- At yesterday’s level of Y117.86, the to the yen riding weeks and months. remain cautious about how far it can ures — the fine-tuning of the quantita-
rency continue to nag, while growth appears overdepend- yen is approximately where Japan’s to his rescue, but One yen-related blow could arise rally against a US dollar that is buoyed tive and qualitative monetary easing
ent on the conjuring skills of Mario Draghi, president of the companies and most market strategists this year looks from the currency’s effect on annual by expectations that the Federal programme announced by the BoJ on
European Central Bank. Looming over this neurasthenic predicted it would be by the end of different wage negotiations, held at this time of Reserve will continue raising interest December 18.
combination is a plethora of geopolitical risks that seem this year. Toru Hanai/Reuters
year. Companies tend to be especially rates, albeit gradually, this year. “The dollar surged on the announce-
more pressing than in any Analysts say the biggest danger is that cautious in raising base salaries when According to analysts at Nomura, the ment as people reacted to the idea that
year since the financial crisis. a prolonged phase of yen appreciation the yen is strengthening. yen’s advances are driven by a combina- the BoJ was announcing additional eas-
In the echo chamber of
US and China feeds back into Japanese equities, which The BoJ’s regional survey of corporate tion of forces, of which its status as the ing,” he says. “Investors were excited at
Davos business leaders will no show that have already shed about 10 per cent of wage-setting behaviour concludes that most “sensible” of the big haven curren- the sense of surprise created by [BoJ
doubt whip themselves into a their value this year. Japan’s Topix is the labour market is likely to remain cies is important. governor Haruhiko] Kuroda. But it was
state of fevered anxiety and
rigged markets 18 per cent below its peak of last August, tight but that the inclination of compa- The rush to find safety in Asia, as swiftly followed by the dropping of the
risk aversion as they contem- are inherently the point when foreign investors’ excite- nies to raise wages in fiscal 2016 has yet macro funds flee Asian currencies dollar against the yen because people
plate these worries, remote ment about the Abenomics story to gather momentum. against the backdrop of a weakening realised it was not a real bazooka.”
from the real world. Yet it is
vulnerable started fading. Nicholas Smith, a strategist at CLSA, Chinese renminbi, has proved broad. All of which places the BoJ in a diffi-
not difficult to make a case The switch in sentiment over the cur- suspects that yen appreciation will soon Last Thursday the benchmark yield on cult position given the turmoil being
that pessimism in the markets is overdone. rency is significant, says Shusuke abate and maintains a target of Y120 10-year Japanese government bonds experienced in financial markets and
China’s transition away from an excessive export and Yamada, Japan FX strategist at Bank of to Y122 for the end of the year. Even if briefly touched a record low of 0.190 per uncertainty over China and global
investment orientation is making progress. The service America Merrill Lynch. Such currency that is not met, however, there is a cent as risk aversion peaked. growth prospects.
economy is growing faster than manufacturing. According
to the Institute for International Finance, a club of big
banks, service industries accounted for 40.3 per cent of
foreign direct investment in the first 10 months of 2015, Capital markets
compared with 30.7 per cent for the whole of 2014.
Beijing’s response last year to the economic slowdown
was to resort to aggressive monetary and fiscal easing,
together with a return to increased public investment and
Bank bond losses put
requests to the banks to roll over loans to zombie manufac-
turers. That suggests that the Chinese economy is unlikely
focus on regulators
to be a destabilising force in the world in 2016 and that
there may even be a little relief for EM commodity export-
ers, although it also points to a brake on structural reform THOMAS HALE Since then prices on some
and a greater pile of debt down the road. AT1 bonds have tumbled. A
In the US and Europe — leaving aside energy companies Sharp falls for the prices of UniCredit bond is trading
— there has been a substantial positive economic shock in some of the riskiest bank below 88 cents on the euro,
the shape of the oil price collapse. This transfers income bonds during a turbulent down from more than 95 in
from oil producers to consumers in the developed world, start to the year are forcing mid-December. A bond sold
who are busy spending the windfall. Consumer industries investors to reassess the by Norway’s DNB has fallen
and especially the car industry have felt the benefit. dangers lurking in the post- from 96 to 92.5 cents on the
Yet there is not enough here to reassure markets, for the crisis kaleidoscope of finan- dollar in the same period.
various negative shocks have exposed an uncomfortable cial debt. In addition to wider mar-
reality. Since the central banks embarked on their uncon- So-called additional tier one ket turmoil, some banks are
ventional measures, inflated market valuations have been (or AT1) bonds convert to seen as more exposed to the
supported by an increasingly threadbare income base. equity or are written down new rules because of the
This is especially true of bonds, some of which, in the when the issuing bank runs amount of capital they have.
eurozone, offer negative nominal yields. But it is also into trouble. Barclays points out that
true of equities, where there is the added vulnerability They were introduced as UniCredit has a much
of potential dividend cuts. And increases in capital values part of a regulatory move to smaller “cushion” between
in the equity market have latterly been heavily dependent shore up big institutions and its current levels of equity
on a handful of trendy technology companies and on put investors in line for and the point at which pay-
smaller companies. losses. ments may be halted.
What experience in both the US and China confirms, in AT1 bonds, which pay high “If you had to look at the
different ways, is that rigged markets are inherently vul- coupons, are yet to be tested market and see price per-
nerable, particularly when central bankers withdraw from under extreme market formance, you are likely to
the fray. The good news is that markets no longer dance in duress. see dispersion between
lockstep to the central bankers’ tune. Monetary policies no The asset class returned names that have large buff-
longer lift all boats. So there is divergence in markets as close to 7 per cent last year, ers and those that do not,”
well as in monetary policy. The result is that more oppor- according to an index pro- said Marc Stacey, a portfolio
tunities are emerging to tempt those with strong nerves. vided by Bank of America manager at BlueBay.
For contrarian investors there is life, at last, after a near- Merrill Lynch. Previously the AT1 market
death experience. But prices have plum- had been less focused on
meted this year in some individual names, he added.
john.plender@ft.com parts of Europe’s €95bn mar- Recent price movements
ket. An AT1 bond sold by are the latest evidence that
Spain’s Banco Popular has the growing market is being
lost as much as 7 per cent of driven by expectations of
its value since the middle how regulators will intervene
of December. where banks are struggling.
More comment and data on ft.com Stocks and bonds have The broader problem of
struggled this year, with con- “regulatory risk” dominates
cerns about China and com- the conversation around
Y Fast FT Our global economies, headed modities rippling across European bank debt.
team gives you market- by Brazil, Russia, India financial markets. In addi- In late December the Por-
moving news and views, and China. tion to global turmoil, AT1 tuguese regulator imposed
24 hours a day, five days ft.com/beyondbrics investors are honing in on losses on bonds in Novo
a week. ft.com/fastft risks for certain banks of the Banco, created from the
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a actions of regulators. ruins of Espirito Santo.
irreverent financial blog. look at what is driving One question for holders of The way losses were doled
Join Paul Murphy and the global currency these bonds is when the regu- out has provoked the threat
Bryce Elder for the daily market. ft.com/podcasts lator will intervene and stop of legal action, spooked
Markets Live session at coupon payments, which is European investors, and
Y Lex Video Analysis expected to happen when weakened bank bonds across
11am. ft.com/alphaville
and opinion from the capital falls to a certain level. peripheral Europe.
Y beyondbrics News and team on the hot issues In December the European “It has become abundantly
comment from more affecting companies and Banking Authority said cou- clear to all investors that
than 40 emerging markets. ft.com/lexvideo pon deferral could strike labels no longer are really
sooner than expected. suitable,” said Mr Stacey.

Wednesday January 20 2016
Brave new era needs new ethics
Advances in technology
pose difficult moral
questions for humanity,
writes John Thornhill
P
ablo Picasso once declared:
“Computers are useless. They
can only give you answers.”
The Spanish artist’s joke
may have been true of the
20th century, when computers were for
the most part souped-up calculating
machines performing clearly pre-
scribed functions. But the expansion of
computing power in the early 21st
century means that computers are now
posing some of the most testing ques-
tions of our times. And it is not clear who
is responsible for providing the answers.
Technological advances in artificial
intelligence, biotechnology, nanotech-
nology, robotics and neuroscience — to
name a few — have left policymakers,
business people and consumers scram-
bling to understand their full social, eco-
nomic and ethicalimplications.
Consider just three questions: first, is
artificial intelligence, as Elon Musk
believes, “potentially more dangerous
than nukes”?
The idea of rogue robots destroying
their creators has been a popular theme
of science fiction for decades. But now
some serious scientists, such as Stephen
Hawking, and prominent tech entrepre-
neurs, including Mr Musk, who runs
Tesla Motors and SpaceX, are express-
ing their concerns about this.
How can we ensure that AI is used for
beneficent, rather than unethical, pur-
poses? The prospect of super-intelli-
gence capable of threatening human
life still appears to be decades away, if it
happens at all.
At the end of last year, Mr Musk,
Peter Thiel and other Silicon Valley
entrepreneurs committed $1bn to
FT SPECIAL REPORT
The World
www.ft.com/reports | @ftreports
funding a new non-profit company,
called OpenAI, with the aim that AI
should remain “an extension of individ-
ual human wills”.
“It’s hard to fathom how much
Inside
Martin Wolf
Why today’s definition
of ‘technology’ is
ludicrously narrow
Mr Musk has also donated $10m to
the Future of Life Institute, a Cam-
Page 2
bridge, Massachusetts-based organisa-
tion, which is studying the social and
ethical dimensions of AI.
Global tensions grow
Of its mission the institute states: over cyber espionage
“Technology is giving life the potential Europe and China
to flourish like never before . . . or to increasingly suspicious
self-destruct. Let’s make a difference.”
A second difficult question is how to of US tech companies
build “ethical elasticity” into self-driv- Page 3
ing cars. For better or worse, human car
drivers are infinitely flexible in evaluat- UK leads the way on
ing the ethics of different situations —
breaking “no overtaking” rules to give ‘three-parent children’
more space to cyclists, for example. But DNA therapy will stop
how should self-driving cars be pro- mothers passing on
grammed to react when confronted
with a real crisis? Should you provide inherited diseases
owners with adjustable ethical settings? Page 4
(See report, page 6.)
In a speech last year, Dieter Zetsche, The rise of smart cows
chief executive of the German
carmaker Daimler, asked how autono- and other advances
mous cars should behave “if an acci- How data harvesting
dent is really unavoidable and where is helping farmers to
the only choice is a collision with a
small car or a large truck, driving into a improve their yields
ditch or into a wall, or risk sideswiping a Page 7
mother with a stroller, or an 80-year-
old grandmother?”
The Daimler and Benz Foundation
has spent more than €1.5m since 2012
supporting a team of 20 scientists exam-
ining the social effects of autonomous
Illustration: MEESON
driving and some of the ethical dilem-
mas that it raises.
Such questions have previously been
the realm of moral philosophers, such
as Professor Michael Sandel at Har- Robot workers
human-level AI could benefit society, vard, when discussing “is murder ever Intelligent machines
and it’s equally hard to imagine how justified?” But now boardrooms — and are changing the
much it could damage society if built or car owners — may increasingly find
used incorrectly,” OpenAI’s founders themselves having to debate the merits culture of work
wrote in a blog post. Continued on page 2 Page 7
2 FINANCIAL TIMES
Seven ways technology has changed us
COMMENT
Martin
Wolf
I
t has become customary to talk
of “technology” as if it were a
special sector of the economy
consisting of the manufacture of
sophisticated electronic goods, the
creation of software, and the provision
of services reliant on information and
communications technology.
This is a ludicrously narrow
definition. Every technique human
beings have invented, from the stone
axe onwards, is “technology”. The
ability of humans to invent technologies
is their defining characteristic.
Furthermore, new general purpose
technologies, such as the computer
and the internet, have effects that fall
far outside the technology sector,
narrowly defined.
We need to assess contemporary
innovations in their broader context.
Here are seven points about these
changes.
First, the penetration of recent
innovations in communications
technology has been astonishingly
rapid. At the end of 2015, there were
more than 7bn mobile phone
subscriptions, a penetration rate of 97
per cent, up from around 10 per cent in
2000. Penetration of internet access
Contributors
John Thornhill
Deputy editor
Martin Wolf
Chief economics commentator
Gideon Rachman
Chief foreign affairs columnist
Richard Waters
West Coast editor
Sarah O’Connor
Employment correspondent
Clive Cookson
Science editor
Andrew Jack
Head of curated content
Hannah Kuchler
Technology correspondent
Andy Sharman
Motor industry correspondent
Duncan Robinson
Brussels correspondent
Murad Ahmed
European technology correspondent
Kadhim Shubber
Alphaville reporter
Sarah Murray
Freelance journalist
Maija Palmer
Commissioning editor
Steven Bird
Designer
Emily Lewis
Picture editor
For advertising details, contact:
Stephanie Collier, +44 (0)20 7873 4597,
stephanie.collier@ft.com, or your usual FT
representative.
All editorial content in this report is
produced by the FT.
Our advertisers have no influence over or
prior sight of the articles.
grew from 7 per cent to 43 per cent over
the same period. (See chart.)
Economically, this has led to the rise
of ecommerce, the transformation of
industries whose products can be
converted into “bits" (music, film and
news media, for example) and the rise
of the “sharing economy”. Socially, it has
altered human interactions. Politically,
it has affected relationships between the
rulers and the ruled.
Second, a substantial “digital divide”
exists. In 2015, 81 per cent of households
in the developed world had internet
access, the proportion in all developing
countries was 34 per cent and the
proportion for the least developed
countries was a mere 7 per cent.
Information is power. It is not yet
clear whether the rapid spread of access
will prove more important than the
persistent differences in its availability.
But there is reason for optimism. The
ability to leapfrog poor communication
and financial networks has already
transformed some developing
countries.
Third, the arrival of the internet and
mobile phones has failed to generate a
sustained upturn in the growth of
productivity. This is shown best by the
Blockchain raises fundamental questions
Financial services
The implications of shared
ledger technology extend
to the role of government,
writes Kadhim Shubber
Blockchain — which is seen by many as
the next big thing in the financial serv-
ice sector — has many potential uses,
from transforming money to modernis-
ing the banking system to digitising
legal processes. Many of these uses
raise questions about a changing rela-
tionship between the individual and
government, but the debate is compli-
cated by misunderstandings about how
the technology works.
Blockchain is essentially a shared pub-
lic database for recording transactions in
a way that does not allow the record to be
altered at a later date. Before the term
blockchain became popular, it was more
typical to refer to bitcoin, the digital cur-
rency that is built upon blockchain tech-
nology. Bitcoin is a system of value trans-
fer that is apparently outside of the con-
trol of the state. Early adopters of bitcoin
viewed it as a way to both escape a
monetary system controlled by central
banksandoperateanonymouslybeyond
the prying eyes of government.
Bitcoin raised the question of whether
computer code, rather than a central
bank, should control the money supply.
And if a digital money system enabled
its users to operate beyond the law — as
physical cash does — was that desirable
for wider society?
The first fallacy about systems such
Wednesday 20 January 2016
The World Ethics and Technology
Global communication technology penetration
%
Mobile telephone
Internet penetration
2014 (%)
0 20 40 60 80
Brave new era
Active mobile broadband
subscriptions
Individuals using
subscriptions
Fixed (wired) broadband
Europe
Americas
demands a
the internet
Fixed telephone
subscriptions 100
80
CIS
Arab states new approach
Asia Pacific
subscriptions
60 Africa to ethics
40 Developed
20 World
Developing Continued from page 1
0 Least developed of Immanuel Kant’s categorical impera-
2001 05 10 15 countries tive versus the utilitarianism of Jeremy
Bentham.
US productivity growth Sources of US growth Developments in healthcare also cre-
ate new dilemmas. Should cognition-
Growth of GDP per hour worked % of GDP
enhancing drugs be banned for casual
(10-year moving average, %)
Labour Labour ICT Non-ICT Total factor Growth users? In their book Bad Moves, the neu-
3.0 quality quantity capital capital productivity* rologists Barbara Sahakian and Jamie
Nicole LaBuzetta highlight the ethical
5 challenges of using smart drugs to boost
2.5 4 academic performance.
Why, they ask, do we take such a dim
3 view of athletes who use steroids to
2.0 2 cheat in the Olympic Games but
ignore students who use smart drugs to
1 boost their performance when they are
1.5 0 about to take university entrance
exams?
-1 Students at Duke University in North
1.0 -2 Carolina have pressed the authorities to
-3
amend the institution’s academic hon-
esty policy to consider “unauthorised
0.5 -4 use of prescription medication” as cheat-
ing. But few other universities, or
1960 70 80 90 2000 10 15 1990 92 94 96 98 2000 02 04 06 08 10 12 14 employers, appear to have considered
FT graphic Sources: ITU; Conference Board. Photo: Dreamstime * Total factor productivity is the portion of output not explained by the inputs used in production. thisdilemma.
“These medications have the poten-
tial to change society in dramatic and
unexpected ways,” say Sahakian and
LaBuzetta in their book. “Now is the
time to have informed discussion and
debate of the ethics of these ‘smart
drugs’ and the role they should play in
our future society,” they conclude.
US, the leader in the development of the Again, most new technologies have also Above all such gnarly questions looms
new technologies and, for more than a generated vast unmeasured surplus a far bigger one: who is responsible for
The internet century, the world’s most productive value. Think of the impact of electric ensuring that the latest technological
and mobile and innovative large economy. light on the ability to study. developments are not abused?
Output per hour worked in the US Fourth, the new technologies have National governments and parlia-
phones grew at rate of 3 per cent a year in the 10 reinforced tendencies towards greater ments, preoccupied with far more
years up to 1966, after which the growth inequality, in at least three respects. One pressing concerns such as fiscal auster-
have failed rate declined, falling to just 1.2 per cent is the rise of “winner-takes-all” markets ity or refugee flows, rarely have the
to generate in the 10 years to the early 1980s. After in which a few successful people, political bandwidth to consider such
the launch of the worldwide web, the businesses and products dominate the abstract challenges, still less to help set
an upturn moving average rose to 2.5 per cent in world economy. Another is the rise of international standards or regulations.
in the the 10 years to 2005. But it then fell to globalisation. A last is the explosion in As in so many other spheres, it seems
just 1 per cent in the decade to 2015. financial trading and other rent-
growth of A decomposition of the sources of extracting financial activities.
productivity growth in productive capacity Some argue that the arrival of robots
‘Medications have the
underlines the point. Over the 10 years and artificial intelligence will transform
up to and including 2015, the average labour markets, rendering even quite potential to change society
growth of “total factor productivity” in sophisticated skills redundant. This
the US — a measure of innovation — was could, if true, generate divisions in unexpected ways’
only 0.3 per cent a year. between the owners of the robots and Barbara Sahakian and
We should not be surprised. As the rest of the population as Jamie Nicole LaBuzetta
Robert Gordon of Northwestern fundamental as those between
University argues, clean water, modern landowners and landless labourers.
sewage, electricity, the telephone, the Sixth, the rise of global inevitable that regulation will drag
radio, the petroleum industry, the communications, of our reliance on behind reality. Besides, what is to stop
internal combustion engine, the motor cyberspace, of behemoth technology- rogue nations from ignoring any inter-
car and the aeroplane — all innovations enabled corporations and of “big data” national norms and putting gene editing
of the late 19th and early 20th centuries raises difficult questions about privacy, or machine learning or cyber technolo-
— were far more transformative than national security, the ability to tax and, gies to destructive uses?
the information technologies of the 81% more broadly about the relationship University departments and think-
past 75 years. between governments, corporations tanks already play a useful role in dis-
internet
Some argue, against this, that penetration in and individuals. seminating knowledge and stimulating
statisticians are failing to measure developed Finally, the rise of pluralistic debate. But they are often dependent on
output correctly, partly by failing to countries interactive media is affecting politics. funding from the private sector and are
capture free services, such as search, Wider access to knowledge is a potential unlikely to come up with radical solu-
which generate vast unmeasured boon. But the new technologies can also tions that will seriously restrict their
surplus value. 7% be used to disseminate lies, hatred and paymasters.
Yet it is not at all clear why internet
stupidity. That largely leaves the tech compa-
statisticians should have suddenly lost penetration in the Technologies are tools. They offer nies to regulate themselves. Some are by
their ability to measure the impact of least developed opportunities and dangers. What we far the best-placed organisations to
new technologies in the early 2000s. countries make of them is, as always, up to us. understand the potential dangers of
technology and to do something to
counter them. Companies such as
Google are forming ethics boards to help
monitor their own activities in areas
such as artificial intelligence.
But, as we saw in the run-up to the
financial crisis of 2008, private sector
institutions can often hide behind a nar-
row interpretation of the law.
ate regulatory input into that system? Some banks also proved adept at
And are they ready for that level of auto- exploiting international legal and regu-
mation? Are they ready for a software- latory arbitrage.
drivenregulation?”hesays. Pushing the law to the limit clearly
There is a second blockchain fallacy. If corroded ethical standards and led to a
digital money enables government sur- number of abuses across the financial
veillance, banks seeking to shift the cost sector. By last summer, financial institu-
of regulatory compliance from them- tions had paid more than $235bn in
selves could argue that access to a fines for breaching regulations, accord-
shared blockchain is all a regulator ing to data compiled by Reuters.
needs to supervise the banking system. As one former banker says: “Not
It is wrong to assume, however, that a everything that is legal is ethical.”
digital database, whether for a country’s This is an issue that tech companies
currency or for a bank’s back office, will have to confront if their own indus-
records everything. Blockchain exists in try is not to suffer a regulatory whiplash
the real world that is ambiguous, messy in the future.
and full of people who may wish to keep
Link in the chain: bitcoin is built upon blockchain technology — Bloomberg things off the database.
One of the most radical ideas for
as blockchain is to believe that they are technology might mean for the financial blockchain technology is the notion of
a defence against government, rather system. The hype and investment have digitising law. The industry jargon is
than an enabler of it. This was moved to blockchain start-ups that “smart contracts” — code on a shared
described the “libertarian fallacy” in a promise to decrease settlement times database that automatically executes a
speech at a blockchain conference in and cut back-office bank costs. contract based on the fulfilment of cer-
Sydney by Lawrence Lessig, a Harvard Unlike bitcoin, which has been run- tain real-world conditions, just as a
law professor who warned in the late ning since 2009, uses of blockchain in vending machine obeys rules to provide
1990s that the internet would be an banking remain largely experimental. sweets when money is inserted.
enabler of surveillance. One vision is for a single database main- One aim would be to eliminate “one
If a society adopts a single system of tained and accessed by the biggest of the most frustrating aspects of con-
digital money, where transactions are banks to execute and settle trades. tractual drafting: the inherent ambigu-
recorded on a single database as they are Simon Taylor, who leads the team ity” of language, according to a paper
with bitcoin, it is possible — even likely looking at blockchain and distributed last year from researchers at Harvard
— that governments will successfully ledger at Barclays, says there are indus- Law School and Yeshiva University in
attempt to control it try discussions about how each bank the US.
“It’s a good method for surveillance of would maintain its own privacy in a But is it desirable, or even possible,
cash transactions, but the question is, do shared database. There are also ques- that contracts become inescapable
you want this surveillance?” says Ben tions about how much access regulators chains? In removing ambiguity or room
Zevenbergen, a researcher at the Oxford should have, he adds. for disagreement, “you’ve evacuated
Internet Institute. “If a shared ledger has the golden the very core concept of what a contract
Now much of the conversation has source record of everything that’s hap- is”, says Quinn DuPont, a researcher in
moved on from bitcoin and cash, to pening, under what circumstances can cryptography and society at the Univer-
blockchain and what shared database the regulator see it? What’s the appropri- sity of Toronto.
Wednesday 20 January 2016 FINANCIAL TIMES 3

The World Ethics and Technology

which is three decades old, study of the of the way that algorithms respond to

Why it is hard to interplay between robots and people is a

new area, she says. Understanding how
people will respond to machines, and
designingtheseinteractionsaccordingly,
could go a long way to ensuring the out-
unforeseen circumstances. A system is
likely to adapt in different ways depend-
ing on the nature of the data it is fed,
says Prof Hebert. Making decisions
about the inputs into smart machines is

teach robots to comesarepositive.

People often respond to intelligent
machines by projecting human values
on to them and interpreting their own
as crucial as their basic algorithms.
How a robot will react when it faces a
choice that it has not been programmed
for is not always easy to predict. The

choose wisely interactions with inanimate objects in

Automation
Questions remain over
whether machine responses
to moral dilemmas will ever
be acceptable to those who
lose out, says Richard Waters
As the use of robots increasingly
encroaches on the real human world, it
is easy to slip into science fiction fanta-
sies about the unforeseen complications
that will follow.
Usually, these involve imaginary dra-
mas in which intelligent machines make
choices that have unforeseen and pain-
ful results for their makers.
Makers of driverless cars, for exam-
ple, are wrestling with an updated ver-
sion of philosophy’s “trolley problem” —
in which there is a hypothetical choice
between a loose train killing multiple
people on one railway track or just one
person by switching to another. Car
owners will have to decide if they will be
comfortable with their autonomous
vehicles making such choices in the
event of an impending accident.
Fully self-driving cars are still some
years away from being mainstream, but
even today many other machines are
performing the basic functions of robots
— such as following commands and con-
stantly monitoring the world around
them, says Wendy Ju, senior researcher
and expert in human and computer
interaction at Stanford University. “We
talk about it as really far off, but it’s hap-
pening right now,” she says.
Robotics experts say that many of the
challenges are not so much ethical as
technological and social: better design
and changing social norms could resolve
Automatic relations: machines care for nursing home residents — Laura Lezza/Getty Images
some of the perceived problems and
narrow the range of truly moral conun-
drums that robots give rise to.
A basic challenge, for instance, is to
accurately measure the performance
of smart machines to determine
whether they are achieving the goals
set for them, says Martial Hebert, head
of the robotics institute at Carnegie
Mellon University. It is one thing to
know, for example, whether granny’s
home robot is working or not, but judg-
ing whether her quality of life has
improved as a result of her having it
may be more difficult.
A further step is to validate that a
system will behave in a known way
under a defined set of circumstances,
Prof Hebert adds, making its actions
more predictable.
Putting more thought into designing
human interactions with robots will
help, says Ms Ju. Compared with the field
of computer and human interaction,
social terms.
As humanoid robots are used increas-
ingly to perform functions that make
life easier for groups such as the elderly
or the ill, this could throw up particular
concerns. Noel Sharkey, professor of
artificial intelligence and robotics at the
University of Sheffield, says that he
found 14 instances in Japan and South
Korea in which robots were being pro-
moted as machines that could be used to
care for children, even though no work
had been conducted on understanding
the effects, says Prof Sharkey. “It was
completely unethical,” he adds.
Another problem stems from the
way in which autonomous machines
react when faced with situations that
were not anticipated by their program-
mers. Machine learning — the basic
technique behind much artificial
intelligence — relies on analysing large
volumes of data to find patterns, in the
process “training” machines how to
interpret and respond to real world
phenomena.
The outcome of that process is not
always predictable, and not just because
challenge, says Prof Hebert, is to train it
to behave the way a person would: “To
know that you don’t know, and still do
the right thing.” But with no self-aware-
ness, this is a lofty aspiration for a
machine.
Meanwhile, even if research in areas
like this succeeds in lessening the harm
and maximising the social benefits of
robots, it still leaves a fundamental
dilemma. Will decisions made by
machines ever be socially acceptable,
particularly if the outcome is negative
for some groups of people? For example,
Google, Toyota and others have said
they believe driverless cars will save
large numbers of lives that would other-
wise be lost on the roads to human error,
but if their vehicles cause even a small
number of deaths will it be acceptable —
and who will be held to blame?
The ethical parameters for debates
like these have yet to be set. “There is no
joined-up thinking about it,” says Prof
Sharkey. Much more public discussion
is needed, he says, along with national
“robot policies” that lay out goals for
their adoption.
See Driverless cars, page 6

Silicon Valley and

Washington in uneasy
truce after Snowden
COMMENT
Gideon
Rachman

Edward Snowden changed the citizens who had undergone

international politics of cyberspace
forever. In 2013, the former contractor
for the American National Security
Agency provoked an international
outcry by revealing the extent of US
government surveillance in cyberspace.
Much of the initial debate focused on
demands for greater privacy on the
internet. Since then, it has become clear
that, in the post-Snowden era, the
international politics of cyberspace has
huge implications for almost every
significant area of public policy —
including business, economics, national
security, espionage and the resilience of
critical infrastructure.
In the US, the Snowden revelations
provoked a serious deterioration in
relations between Washington and
Silicon Valley. The giants of America’s
internet economy, such as Google and
Facebook, were horrified by the risk
that their customers might lose trust in
their services. In response, they have
accelerated the deployment of new
technologies and forms of encryption
that promise to protect their
customers’ privacy.
Unfortunately, increased concern
about privacy on the internet has
coincided with a rise in public anxiety
about the threat of terrorism. Western
intelligence agencies, such as the NSA
and Britain’s GCHQ, worry that the
encryption of communications will
make the internet “go dark” — and so
make it much harder for them to
monitor potential terrorist attacks.
The result has been a stand-off in
relations between Silicon Valley and
Washington, with the threat of new
legislation in the background.
Western intelligence
agencies worry that
encryption will make
the internet ‘go dark’
Cyber security has also become a
thorny problem between the US and
China. In recent years, China has done
more to fortify its “great firewall”,
which is intended to shut out
“subversive” content from the west. In
the post-Snowden era, the Chinese
government has also put pressure on
Chinese companies to buy less
technology from the US. In this case,
security concerns fit neatly with the
goal of promoting indigenous Chinese
technology. For its part, the Obama
administration has long complained
that US companies have been the
subject of large scale and sustained
efforts at industrial espionage
originating in China.
The US and the EU are also concerned
about cyber attacks from China and
Russia that have implications for
national security. The US government’s
Office of Personnel Management was
hacked from China in 2015, exposing
the personal data of around 20m US
background checks (including the
fingerprints of more than 5m people).
In Europe, the Russian government has
been accused of launching cyber
attacks on its neighbours in efforts to
disable the internet at times of political
tension. The first such attack was
allegedly launched on Estonia in 2007.
Ukraine also experienced similar
problems in 2014, at the time of Russia’s
annexation of Crimea.
Until recently, therehasbeenvery
little international efforttocreatean
effective network oflawsand
agreements to regulategovernment
behaviour in cyberspace.International
relations theoristshaveoftencontrasted
the ungoverned natureofcyberspace
with the web of internationaltreaties
that covers arms control.
The failure of the world’s
governments to reach agreements on
the regulation of cyberspace reflects the
fast-changing nature of the
technologies. There has also been a
reluctance on the part of the US to
subject an industry — in which the
nation has a clear global competitive
advantage — to international meddling.
Any such moves have tended to provoke
warnings in Congress about “UN control
of the internet”.
However, the extent of Chinese cyber
espionage, combined with the post-
Snowden backlash, seems to be
changing attitudes. At the most recent
US-China summit in September 2015,
presidents Barack Obama and Xi
Jinping agreed to co-operate much
more closely on cyber matters. A joint
US-China committee has been set up to
deal with these. The fact that the
committee includes top government
officials from both sides suggests that
both nations may be serious about
these efforts.
But not all the damage of the
Snowden revelations can be undone.
Attitudes in Europe towards the US
internet giants have become much
more hostile in recent years. In
countries such as France and Germany,
the acronym GAFA (Google, Apple,
Facebook, Amazon) is intended to
describe an allegedly malign alliance of
corporate and cyber power that is
based in the US.
In 2015, the European Commission
opened an antitrust investigation into
Google, which is accused of abusing its
market dominance in Europe. The
European Parliament has even
suggested the possible break-up of
Google — separating its search engine
from its other functions.
All this anti-GAFA activism in Europe
and China has put the Obama
administration in a tricky situation.
Even as it clashes with Silicon Valley
over issues of privacy and espionage at
home, Washington feels the need to act
overseas to protect the interests of
companies — such as Google — as they
are targeted by foreign regulators and
governments. Such are the paradoxes of
the post-Snowden world.
4 FINANCIAL TIMES Wednesday 20 January 2016

The World Ethics and Technology

Genetics Mitochondrial DNA therapy is set to be

offered in the UK in 2016, writes Andrew Jack

DNA donors
could spell
end of parents’
disease fears
F
rom his clinic in Newcastle,
north-east England, Doug
Turnbull is preparing for the
probable launch in the coming
months of a pioneering medical
intervention with substantial benefits —
andconsiderableethicalrepercussions.
His approach to replacing damaged
mitochondrial DNA in human cells —
leading the way to what has popularly
been dubbed “three parent children” —
is expected to gain regulatory approval
and start to be offered to couples during
2016. It offers hope to dozens of parents
each year in the UK seeking to have chil-
dren without the risk of passing on a
range of health disorders.
“I have to say, I enjoyed my Christmas
break because I’ll need it,” he jokes, as
he expresses continued caution about
the steps his team must still successfully
complete before they can start using the
process with patients at his in vitro ferti-
lisation centre.
“I’ve spent 30 years looking after
patients with mitochondrial disease. I’m
going to be more rigorous than anybody
else to ensure we have got everything in
a row before anything happens,” says
Prof Turnbull.
Britain is being closely watched
around the world as the first country set
to introduce mitochondrial transfer. UK
experts are also exploring still more rad-
ical interventions including genome
editing to reduce the risk of other dis-
eases being passed on to children.
Mitochondria are the “batteries” that
provide energy to cells. Damaged mito-
chondrial DNA — inherited from the
mother — can lead to rare diseases with
few treatment options, including neu-
ropathy, ataxia, and retinitis pigmen-
tosa and Leigh syndrome. Estimates
suggest that 2,500 women of childbear-
ing age in the UK are at risk of passing a
serious mitochondrial disease to their
children.
Prof Turnbull’s team at Newcastle
University and the Newcastle upon
Tyne Hospitals NHS Foundation Trust
has developed the “pro-nuclear trans-
fer” technique. This removes the
nuclear material of the parents’
Breakthrough: fertilised egg, containing damaged
damaged mitochondria, and implants it into a
mitochondrial donor’s healthy egg from which the
DNA can be nuclear material has been removed.
swapped for that An alternative process called mater-
of a healthy nal spindle transfer technique, devel-
donor oped by US researchers, uses the same
Getty Images
approach but fertilisation takes place
only after the parents’ material is
implanted into a healthy egg.
Mitochondrial DNA contains just 37
genes, compared with the 23,000 in the
nuclear genome. That means using the
healthy equivalent from a donor’s egg
has scant impact on the characteristics
of the child. The anonymous donor has
no rights over the baby.
No team has yet applied for approval
from the Human Fertilisation and
Embryology Authority (HFEA), which
will regulate the process. However,
Robin Lovell-Badge, head of the division
of stem cell biology and developmental
genetics at the Francis Crick Institute,
and a member of the HFEA oversight
committee on mitochondria, says either
technique could be considered.
Catholics have been among the critics
of the techniques, particularly pro-nu-
clear transfer because it destroys a fer-
tilised egg.
“If someone has a religious objection,
they should declare that rather than
saying it is not scientifically safe with-
out evidence,” says Mr Lovell-Badge. “I
respect that view, although I personally
disagree. I would value a child more
than an early human embryo.”
His views are reflected both in the
UK’s decision to create the HFEA in
2008 and legislation passed last year
specifically to permit mitochondrial
transfer.
Prof Turnbull argues that the UK’s
leading position has been helped by a
combination of substantial medical
research, patient support and advocacy,
and charitable funding.
He also singles out the role of the
state-supported National Health Serv-
ice. “It allows us to look after more
patients than anyone else. Sometimes
we’re great at mocking the UK, but we
don’t realise how lucky we are.”
The remaining steps before Prof
Turnbull’s technique can be offered to
couples include peer review of final
studies to demonstrate safety and effi-
cacy; the receipt of a licence from the
HFEA; and agreement with the NHS on
whether — and how — mitochondrial
transfer would be funded. Subject to
parental consent, there will also be
efforts to follow children’s progress
after their birth.
As work continues on mitochondrial
transfer, earlier stage research is also
‘If someone proceeding on genome editing, which
has the potential to alter genetic
has a sequences to tackle many other diseases
religious — both in treatment and to remove
inherited conditions. That is still a long
objection, way off, and will raise still tougher scien-
they should tific challenges and ethical debates.
But for now, mitochondrial transfer is
declare that coming close to reality. “Other countries
rather than are watching the UK very closely,
including the US, Australia, Scandina-
saying it is via, Belgium, the Netherlands and
not safe’ China,” says Mr Lovell-Badge. “It will
take off.”

From Obama to ‘troll farms’: how

social media is changing politics
Social media
Have organised onslaughts
and politicians’ campaigns
undermined the dream of
truly democratic online
debate? By Hannah Kuchler
Hundreds of Russians plug away at key-
boards, spreading pro-Kremlin propa-
ganda on social media sites and master-
minding online hoaxes every day. They
work in what have come to be known as
“troll farms”, named after the deroga-
tory nickname used for people who
spread hate on the internet.
Adrian Chen, who visited a troll farm
called the Internet Research Agency
while reporting for The New York Times,
believes that the Russians might be the
most organised trolls.
However, they are not unique — social
media is being used to distort political
debate around the world.
In Russia, Mr Chen says, internet users
may not be convinced by the comments
left by trolls on internet sites. But trolling
works by sowing seeds of distrust in
online conversations. It pours cold water
on social media’s promise to bring peo-
pletogetherforfrankdiscussion.
“This more insidious effect is to make
the internet an unreliable source of
information and to undermine the dem-
ocratic nature of the internet. That is to
the government’s advantage,” he says.
Troll farms in Mexico and India work
in a similar way, Mr Chen adds, and the
same principle applied in “GamerGate”,
an organised online harassment cam-
paign against women in the video game
industry, which erupted in 2014. “You
can easily flood the internet with this
garbage to try to drown out your oppo-
nents,” he says.
China also runs its own propaganda
armies and monitors what people post
online to see how public opinion is
changing. Meanwhile Isis supporters
have become expert in creating anony-
mous accounts that are used
to spread propaganda and
recruit potential terrorists. As
soon as companies such as Face-
book and Twitter shut these down,
new ones appear.
Presidential address: Barack
Obama has more than 68m
Twitter followers
When social media sites first
emerged, they appeared to give every-
body the ability to broadcast their
views, suggesting that a wider range of
voices would be heard than in the main-
stream media.
However, a system that allows people
to comment anonymously, and which
makes it easy to retweet and share mes-
sages, is vulnerable to manipulation,
particularly by organised groups with
money and personnel — especially as
the mainstream media seem willing to
amplify their message.
Politicians have built large followings
on social networks, thrilled to be able to
reach voters directly. US President
Barack Obama has more than 68m fol-
lowers on Twitter, while the Indian
prime minister Narendra Modi has
more than 17m.
But political debates that engage citi-
zens are still rare, argues Professor
Christian Fuchs, the director of the Uni-
versity of Westminster’s communica-
tion and media research institute. He
points to Mr Obama’s use of his political
account to promote a competition for a
cruise to Alaska last month.
“Such populism 2.0 reduces the politi-
cal public sphere to submit-and-win
contests, political spectacles and
personality politics dominated by
leadership figures,” he says. “What is
today largely missing are politically
innovative users of social media that
engage citizens in political conversa-
tions with each other, in which they
have the chance to discuss and explore
the complexity of the key political chal-
lenges the world faces today.”
Nick Anstead, assistant professor at
the media department of the London
School of Economics, says it is also a
myth that social media is a way to reach
large audiences for free.
“When people were first considering
the internet and new media, there was
certainly a sense that it was going to
change the power dynamics, it would
lead to a redistribution of power,” he
says. But it is now clear that to thrive on
social media, politicians have to have
access not only to a large group of sup-
porters and but also to money, he says.
In the 2008 US presidential election
race, Obama’s campaign was seen as
mastering the use of grass roots sup-
porters to spread messages online — but
it also spent 10 per cent of its paid media
budget on buying digital advertising.
Andrew Heyward, of the MIT Media
Lab, says politicians’ social media
strategies now resemble those of
brands, with Republican Donald Trump
by far the most successful presidential
candidate.
Mr Trump has made so many waves
on social media they have flooded into
traditional media and given him so
much coverage that he is only just buy-
ing his first traditional, mainstream
media advertisements.
Mr Heyward is using a new analytics
tool to track the “horse race of ideas”
in the US presidential election cam-
paign.
Discussion of many topics on
social media — from national
security to immigration —
reflects what is being said in the
mainstream media, and vice
versa, the study has shown.
Because of this, Mr Heyward is
more optimistic that social net-
works can actually become the
“virtual town hall meeting” that
Twitter, at least, has aspired to be.
“It is a brave new world,” he says.
“But actually, ironically, even
though it takes advantage of a
modern and sophisticated tech-
nology, it is a throwback to what
the Founding Fathers had in
mind — a lively conversation.”
Wednesday 20 January 2016
The enhanced human
Bionic advances
to defeat death
People have long dreamt of
extending the human lifespan from
the biblical “three score years and
10” (70) to reach Methuselah’s 969
and beyond.
Demographic statistics show
remarkable progress in fending off
death, at least in the developed
world. In reality, average life
expectancy in biblical times was
not 70 but about 35 years. In
Britain this rose to about 50 in
1900, 76 in 1990 and 82 today.
Medical progress at the current
rate would let most people born
later this century live beyond the
age of 100. But many people are
more ambitious than that.
Google’s Calico subsidiary and
Human Longevity, started by
genomics pioneer Craig Venter, are
looking to extend life by finding
new ways to treat diseases
associated with old age. At the
more extreme end Alcor, an
Arizona cryonics company, freezes
people after death in the hope that
they can be brought back to life at
some future point when medical
technology is more advanced.
At the same time, the
transhumanist movement, which
aims to enhance human beings
with every scientific and
technological means available,
gives the search for immortality a
political dimension. The
Transhumanist party is fielding a
US presidential candidate this year
in the form of Zoltan Istvan.
Ageing is such a complex
biochemical process that there is
no simple route to a healthy life
lasting well past 100 years old.
At the whole-body level there are
many ideas for molecular
intervention to slow down or
reverse the deterioration, from
rebuilding the telomere “caps” that
protect human chromosomes to
resetting the markers that switch
genes on and off.
Individual organs or parts of our
body can also be enhanced or
rejuvenated to counteract failures
due to age or disease (see graphic).
Clive Cookson
FT graphic Graham Parrish Photos: Dreamstime
FINANCIAL TIMES 5
The World Ethics and Technology
Brain implants Many neurotech labs are developing implants 1
that enable disabled people to move robotic limbs by power of 1 4 Synthetic fertility Stem cell
thought. More far-reaching is work at the University of
Southern California on prosthetic restoration of the brain’s
2 technology may come to the
rescue of women whose
damaged memory circuits. The USC team has created a ovaries cannot produce
healthy eggs and men
computer algorithm that encodes memories, which could
reduce forgetfulness in people with head injuries or Alzheimer’s whose testes cannot
produce viable sperm.
disease. Eventually the
technology might Research teams in
enhance memories Cambridge (UK) and Kyoto
to a supernatural (Japan) have recently
level or make it produced primordial germ
possible for cells capable of generating
people to share mature sperm and eggs. In
memories by mice these have gone on to
produce offspring and it is
direct
brain-to-brain
3 only a matter of time before
the technique is developed
transmission.
as a treatment for human
infertility.
2 6 5
Powered exoskeleton Robotic
bones and muscles, worn outside
the body, can add enormously to
the strength and endurance of the
human back, legs and arms.
Companies and universities in
4 Europe, the US and Japan are
developing exoskeletons with
names such as Robo-Mate, Power
Loader and Hulc for users ranging
from soldiers on the battlefield and
Bionic sight The eye is one of the most fertile sites for restoring workers in heavy industry to
damaged tissues and potentially surpassing intrinsic human capability paraplegics and the elderly. Soon
– partly because its surface location makes it easier to access than these will be linked to
most internal organs. Biological approaches to curing blindness include brain-computer interfaces so that
gene therapy and implanting stem cells to do the job of the patient’s the wearer can control them
failed retina. Electronic solutions include bionic systems that bypass through his or her thoughts.
the eye and feed information directly into the brain.
Artificial heart The heart was the first complex human organ for
which bio-engineers made a synthetic replacement. Versions with
3 6 Bionic limbs Amputees can
choose from a rapidly
bulky external power supplies were implanted more than 30 years growing range of artificial
ago. Today’s models, made by companies such as Carmat of France, arms, hands, legs and feet,
AbioCor of the US and Berlin Heart of Germany, can keep transplant which are already
patients alive for years while they wait for a suitable donor heart. approaching real limbs in
Long-life artificial hearts that pump blood their dexterity and
round the body without a traditional versatility, though much
pulse – now in development – work still has to be done to
are designed to operate produce a comfortable,
continuously for decades. 5 pain-free interface between
prosthesis and body.
Eventually artificial limbs will
have skins with synthetic
nerves transmitting a sense
of touch and pressure to the
wearer’s brain and receiving
signals back, through a
bidirectional interface.
6 FINANCIAL TIMES
Transport Automakers are approaching the race to
automated vehicles with caution, says Andy Sharman
Driverless cars
pose worrying
questions of
life and death
A
lot of “weird stuff” hap-
pens while driving, says
Stanford University pro-
fessor Chris Gerdes. His
assertion goes to the
heart of one of the problems associated
with driverless cars. How can we expect
a robot to deal with all the eventualities
humans encounter on the road —
whether unpredictable pedestrians,
rogue traffic cones, or even dead plants
blowinginthewind?
And what about so-called “algorithms
of death”: can robots be trusted to
choose the least bad outcome in the
event of an unavoidable crash?
Autonomous cars are not only push-
ing a century-old industry to the fore-
front of innovation. They are also
forcing us to face crucial questions
about how much control we are willing
to hand over to machines.
Cars that drive themselves may fun-
damentally reshape the way we view
devices — from things that work or fail
to a more nuanced picture of machines
that can reason but also make mistakes.
“I don’t think we’ve seen a technology
quite like this that mirrors what
humans do in such an open-ended task,”
says Prof Gerdes, director of Stanford’s
automotive research laboratory. “It
really is a place where we have a robot
doing something which, up to this point,
has been exclusively human.”
Established manufacturers including
Daimler and BMW, as well as tech
upstarts such as Tesla and Google, are
known to have engaged experts such as
Prof Gerdes to discuss ethical questions.
Others, such as Fiat Chrysler, say they
have engineers “exploring” the implica-
tions of autonomous driving.
General Motors says “an autonomous
system for production is not close
enough today to have answers to these
questions, or even to know all the ques-
tions”. But Nissan, the Japanese group
that with partner Renault is the world’s
fourth-largest carmaker, has gone fur-
ther, appointing a researcher at its Sili-
con Valley office dedicated to looking at
these ethical issues. Melissa Cefkin, an
anthropologist, is researching the inter-
action between autonomously driven
vehicles and pedestrians and cyclists.
One layer of ethical questions for driv-
erless cars involves scenarios and
thought experiments. Daniel Hirsch, an
automotive expert at PA Consulting,
poses one: “A child runs on the street
and the car has only two options — kill-
ing the child or killing the old, cancer-
suffering driver.” The “correct”
response to this situation in one country
or culture might be different in another.
The World Ethics and Technology
Hands off: automated driving is being tested on public roads — Bosch
It might even be illegal — both German
and Swiss law say human lives cannot be
weighed against one another.
And what about the position of big
business, such as insurers? “There’s a
significant number of these cases in
which the insurance company would
decide differently — for instance, to
them a handicapped child is more
expensive than a handicapped elderly
person due to remaining lifespan,” says
Mr Hirsch.
While fully driverless cars remain
some years away, highly automated cars
with sophisticated crash-prevention
technology are on the road today. Such
considerations are making carmakers
take ethical questions seriously.
“There is an increasing awareness
across all automakers that they have to
deal with the psychological issues of
these vehicles,” says Hans-Werner Kaas,
senior partner at McKinsey, a consul-
tancy. “They’re beefing up their skill-
set.”
These moves underline that the
industry is hypersensitive to safety fol-
lowing a series of high-profile recalls of
millions of vehicles, meaning the race to
adopt new technologies must be
approached with caution.
Volvo, which has built its brand
around safety, typifies that approach.
Erik Coelingh, a senior technical leader
for safety at the Swedish carmaker, says:
“In practice, we have to make sure a car
never gets into a situation where it has to
make an impossible choice.”
That means driving conservatively
and observing traffic rules. To under-
score the point, Volvo said in October it
would accept full civil liability for acci-
dents caused by its self-driving technol-
ogy. But that is not the same as saying
drivers can enter what one BMW execu-
tive calls “brain off” mode.
Facing the full ethical dilemma of
autonomous cars is still some years
away. California — one of the most for-
ward-looking transport regulators —
last month adopted draft rules that
would require humans to stay in control
of a vehicle at all times, as is written in
the Vienna Convention observed by
many European countries.
This means fully driverless cars
would be “initially excluded from
deployment” in California.
“We as a society have to decide
whether we’re ready for a machine,
with no driver intervention, to decide
what should happen in a critical situa-
tion,” says Ian Robertson, BMW’s
board member for sales and marketing.
“And I’m not sure that we are yet ready
for that.”
EU removes
carrot but
keeps stick
in data laws
Online privacy
EU and US are at odds over
who controls the internet,
writes Duncan Robinson
Not many pieces of EU legislation are
accompanied by their own movie. Yet
cameras followed Jan Philipp Albrecht,
a charismatic young Green MEP for
northern Germany, for nearly two years
allowing viewers to watch the slow ges-
tation of the General Data Protection
Regulation in tasteful monochrome.
Mr Albrecht’s turn on screen in
Democracy, which came out late last
year, demonstrated how data protection
has gone from an arcane topic to
front-page news as the companies that
have built businesses on user informa-
tion, such as Google and Facebook, have
grown into some of the world’s largest
businesses.
Data — the pictures, payslips and per-
sonal items that make up life online —
have sparked a scramble among compa-
nies to hoard, analyse and ultimately
make money from it. How to regulate
this growing industry, both now and in
the future, has become one of the most
important tasks facing regulators.
After four years of negotiations, the
EU tightened its rules on data protec-
tion, updating legislation devised in
1995, when Netscape was the world’s
most popular browser and three years
before Google was founded in a garage.
The new rules were designed to fill
cracks in the EU’s data protection
regime, which left companies facing
different — sometimes conflicting —
guidelines. In exchange for tighter regu-
lation and higher sanctions, businesses
would benefit from less bureaucracy
and greater legal certainty.
Or at least that was the plan. In reality,
the sanctions have got bigger — jumping
to fines of 4 per cent of global turnover
for egregious breaches, or enough to
wipe out the annual profits of a typical
retailer. Companies are now also
required to report data breaches within
three days.
But the longed-for single data protec-
tion regime, giving businesses a lone reg-
ulator to deal with, failed to materialise.
Naive entrepreneurs
at risk of losing out
to venture capitalists
Funding
Tech start-up financing is
often structured to protect
venture capitalists, not
founders, says Murad Ahmed
Nicolas Brusson and Philippe Botteri
met in 2003. They were “two French-
men in the Valley”, both having relo-
cated to California for jobs in the tech
industry. A friendship was forged over
several skiing trips.
In 2007, Mr Brusson announced he
was returning to France to co-found
BlaBlaCar, a ride-sharing service allow-
ing motorists to offer their spare seats to
passengers.
“My first reaction was ‘this is never
going to work,’” says Mr Botteri.
But, over the years, Mr Brusson con-
tinued to develop the concept. And
when in 2011 Mr Botteri joined Accel
Partners, one of Europe’s leading ven-
ture capital groups, he invested in
BlaBlaCar. Today, it is a rare European
“unicorn” — a private tech company
worth more than $1bn.
“The important part is that I got to
know Nicolas over seven years before
investing, and getting this trust . . . is
really key,” says Mr Botteri. The pair
also still enjoy skiing trips together.
There is not always time to build a
relationship over such a long period. In
the fast-paced world of technology, large
sums of capital are required quickly for a
start-uptoseizeamarketopportunity.
Funding decisions are therefore more
often based on contracts rather than
trust. Unfortunately the balance of
power in contracts can be heavily
weightedinfavouroftheinvestor.Aven-
ture capitalist is usually far better
informed than the twenty-something
founderseekingfundingforacompany.
Unlike new entrepreneurs, VCs know
their way around a term sheet, which
sets out the investment conditions, and
Teenage angst Clash
over rule change that
could block under-16s’
access to social media
Late last year, the EU agreed rules to
strike terror into any smartphone-
addicted teenager.
Buried in the almost 200-page
regulation on data protection was a
last-minute tweak that would make it
illegal for companies to handle
personal data of people below the age
of 16 without parental consent. It
would potentially have torpedoed
businesses such as Instagram and
Snapchat, which trumpet to
advertisers their ability to attract
younger uses.
But after a few days of lobbying, and
often hysterical press coverage, a deal
was reached. Although 16 will still be
the norm across Europe, governments
can, if they wish, reduce this age to 13,
which has been the de facto age of
Although companies have one lead data
protection authority, other regulators
can muscle in if they feel aggrieved.
“What remains is the stick, but not the
carrot,” says Monika Kuschewsky of
Covington&Burling,alawfirm.
Bubbling underneath the entire nego-
tiations was a broader point: the EU
wants to set standards online, making
its regulatory footprint as big as possi-
ble. The new rules are unashamedly glo-
bal in nature. Companies will be fined
based on their worldwide turnover, not
just their European sales.
Likewise, the rules — and punish-
ments — will apply to any company that
does business in the bloc, whether or not
they are established in the EU. Even
companies that just monitor EU citizens
are covered by the legislation.
Critics say that, in practice, this
changes little as most companies
affected already did some business in
the EU. But it is a demonstration of
intent, as Eduardo Ustaran, a partner at
law firm Hogan Lovells, points out. “It is
clear that European policymakers and
public authorities are keen to make
their powers extraterritorial. In many
respects, it is a reflection of our glo-
balised economy and society — Europe
does not want to lose its reach,” he says.
Until now, the US — both its compa-
nies and regulatory norms — has tended
to dominate the internet. But this
hegemony has come under pressure in
recent years.
A series of rulings from the European
Court of Justice have introduced funda-
mental shifts for privacy online. In a
momentous ruling in 2014, judges in
Wednesday 20 January 2016
they employ analysts to assess the
potential of a start-up compared to
similar existing companies.
Experienced investors say it is folly to
use this knowledge to exploit entrepre-
neurs by, for example, demanding too
much equity in a business or insisting on
outrageously advantageous terms.
Tech investors are laying bets that will
take years, if not decades, to pay off. To
achieve healthy returns, investor and
entrepreneur must work in a long-term
partnership. But it is also folly to believe
investorsnevertrytopullafastone.
Juan Lobato, a prolific angel investor
and co-founder of London-based
fintech group Ebury, said recently that
Contracts can mean that
the balance of power
is heavily weighted in
favour of investors
he often sees cunning investors insist
on funding terms, such as preferential
share classes and priority liquidation
rights, that prey on inexperienced
founders’ naivety.
The desire to be a unicorn is making
the problem worse. Entrepreneurs aim
to raise huge sums and push to gain a
headline valuation of over $1bn quickly
so they can join this mythical club.
But, as the FT reported recently, such
funding deals are increasingly struc-
tured with heavy investor protections.
In effect these provide VCs with guaran-
teed returns and a degree of protection
against any losses.
If a start-up grows into its high valua-
tion, all will benefit. However there are
already signs that high-profile compa-
nies such as Square, Dropbox and Snap-
chat are struggling to live up to their
large valuations.
In such cases, those who lose out most
are likely to be the entrepreneurs and
early employees, who will see their
stakes increasingly diluted.
Social media: new limits — Getty Images
consent among internet groups.
This leaves big internet groups with
a lot of lobbying to do at a national
level to keep to the lower age limit.
Technology groups argue that
teenagers are more than capable of
handling themselves online and that
the ban was devised by “people who
have not spent any time with 15-year-
olds”, as one tech policy adviser put it.
But if the lobbying fails, Facebook and
Snapchat et al face the task of
verifying the age of people online in
the EU. Duncan Robinson
Luxembourg declared that European
citizens had the right to remove out-
dated, inaccurate or incomplete infor-
mation about themselves from search
engine results. This, they argued,
should apply globally, even to websites
not based in the EU, such as results on
Google.
A year later, the same judges struck
down “safe harbour” — a crucial agree-
ment between the US and the EU that
allowed companies to transfer data
across the Atlantic without having to set
up a complicated legal structure. These
rulings have demonstrated a funda-
mental split in the way US and EU
authorities see data protection.
“The US has privacy — we just do it
differently,” says Penny Pritzker, the US
commerce secretary who is overseeing
the negotiations for the US. “Europe has
a different approach to privacy.”
Unfortunately, equal but different is a
principle that does not work effectively
for instant global transfers of informa-
tion, argues Mr Ustaran “In the context
of data there is an urgent need to appre-
ciate that, in the real world, information
flows are not subject to geographic or
jurisdictional boundaries,” he says.
As a result, attempts by legislators to
introduce measures in the 21st century
that restrict data to defined geographi-
cal areas are “ludicrous”, he says
Such contradictions may explain why
the deal took so long to agree. This
delay left a rather large flaw in Democ-
racy: the documentary ended in the
spring of 2014 — more than a year
before the law was finished. Perhaps
they will make a sequel.
Wednesday 20 January 2016
Intelligent
robots raise
anxieties over
future for jobs
Employment Some roles may go, but technology
will not get rid of work, says Sarah O’Connor
I
n a shiny demonstration room in a
Tokyo office, a small robot called
Sota swings its arms enthusiasti-
cally like a small child as it talks to
the humans clustered around it.
NTT Data, the Japanese IT services com-
pany, is planning to dispatch these little
table-top robots into care homes for the
elderly, where they will be able to talk to
the residents as well as control their
lights, check their blood pressure and
remind them when to take their pills.
With its big round eyes and childish
voice, Sota (pictured right) is far from
threatening. Yet many people are
increasingly fearful of the trend that Sota
represents: a fresh wave of technological
progress that some believe will render
manyhumanworkersredundant.
The idea that vast numbers of jobs will
soon be automated has even permeated
the walls of the world’s central banks.
Late last year, both Andy Haldane, the
Bank of England’s chief economist, and
Ignazio Visco, governor of the Bank of
Italy, gave speeches exploring the eco-
nomic consequences of the “second
machine age”, as MIT’s Erik Brynjolfsson
andAndrewMcAfeehavecalled it.
The trigger for these fears is the devel-
opment of machines and computers
that can be substituted for human
brains as well as brawn — threatening
the jobs of truck drivers, analysts and
financial journalists.
“The smarter machines become, the
greater the likelihood that the space
Camera drones and cow fitness
trackers help drive farm yields
Agriculture
Smallholders could benefit
from precision technologies
— if they can get access to
them, reports Sarah Murray
A fitness tracker for cows might have
seemed like a whimsical situation
comedy idea — until someone came up
with one. Amsterdam-based start-up
Connecterra says its dairy activity moni-
tor saves farmers time and money and
improves milk yields. Its system is one
example of how digital technologies are
moving intoagriculture.
The question, however, is whether
they will be available to a crucial
segment of the global farming sector —
smallholders.
As excitement grows around big data
and the “internet of things” — objects
that are connected to the internet to
generate and transmit data — new tech-
nologies have the potential to enhance
the efficiency of agriculture.
When equipped with sensors that
gather and send data, for example, farm
machinery can track the performance
of seeds planted at different depths in a
field. Drones and satellites fitted with
cameras can generate images that give
farmers an overview of yield patterns.
“We have already seen this in Europe
and the US, where big tractors are able
to use data from satellites to improve
the precision of agriculture,” says
Shenggen Fan, director-general of the
Washington-based International Food
Policy Research Institute. “But, more
importantly, it’s some of the emerging
economies like India and China where
they are beginning to use big machines
equipped with GPS, lasers and other
technologies.”
These technologies can help farmers
make adjustments to their systems
throughout the growing season. For
example, sensors distributed through
the soil can allow farmers to increase or
decrease irrigation to meet moisture
levels, saving money, conserving water
and increasing yields.
As these technologies collect large
amounts of data, farmers can start to
run analytics that help them to create
predictive models to forecast the size of
the season’s yield, for example.
Connecterra does this by tracking the
behaviour and movements of cows. Its
remaining for uniquely human skills
could shrink further,” Mr Haldane told
an audience of British trade unionists in
November.
He estimated that about 15m jobs in
Britain, almost half the total, were at
risk of automation. Similarly, Mr Visco
told his audience that up to 50 per cent
of jobs in the major European countries
were estimated to be at risk.
Not everyone is panicking, however.
For one thing, we have been here before,
as David Autor, an economics professor
at MIT, points out.
In a recent paper, he noted that fears of
automation and joblessness were run-
ning so high in the 1960s that president
Lyndon B Johnson created a special
“Blue-Ribbon National Commission on
Technology, Automation, and Economic
Progress” to examine the consequences
for jobs and living standards. The
national commission eventually con-
cluded that mass unemployment was
not a risk: “The basic fact is that technol-
ogy eliminates jobs,notwork,”itsaid.
The commission was proved right.
During the wave of automation in the
1960s, and those that preceded (and
succeeded) it, the overall level of
employment held up because new jobs
replaced old ones. There have been win-
ners and losers as middle-skilled jobs —
such as routine secretarial and manu-
facturing tasks — have declined, but the
total proportion of people in work has
not budged much.
dairy monitor can help farmers
increase the efficiency of grazing time
per animal and predict oestrous cycles
— when females are at their most fertile
— more accurately, increasing the per-
centage of cows that become pregnant
during a breeding season.
The benefits of the technology are not
limited to large industrial agriculture.
As the work of some non-governmental
organisations (NGOs) demonstrates,
technology can also improve efficiency
for smallholder farmers.
For example, TechnoServe, an NGO
that works globally with farmers who
live on $1 to $5 a day, has used satellite
imaging to revitalise South Sudan’s
long-dormant coffee industry in part-
nership with Nestlé’s Nespresso brand.
“We used satellite imaging to count
coffee trees to figure out where to group
farmers and set up wet mills [where cof-
fee beans are separated from the pulp],”
explains William Warshauer, Tech-
noServe’s president and chief executive.
“The result has been the first ever
export of coffee out of Sudan to Europe.”
However, technologies such as web-
enabled sensors and data analytics are
alien to most of the world’s smallholder
farmers. Responsible for producing up
Smart cows: fitting a dairy monitor
FINANCIAL TIMES 7
The World Ethics and Technology
Countries including Japan and China buy large In the UK, for example, technology
numbers of industrial robots each year...
Estimated yearly shipments of multipurpose
industrial robots (Number of units)
Japan
China
North Korea
Germany
has improved productivity by about a
third each generation, yet the employ-
ment rate is roughly the same now as it
was in the early 19th century.
“We could be talking about spinning
US Other jennies or we could be talking about
cyborgs — from an economic perspec-
tive it’s kind of the same,” said Toby
54,179 Nangle, asset manager at Columbia
50,316 48,313 18,297 Threadneedle Investments.
“I think the onus on people saying
19,533 17,528
21,307
25,536 19,424 ‘this time is different’ is to make the case
23,679 why it is different.”
20,555 22,414 Those who say this time will be differ-
22,577 22,987 36,560 ent, such as Martin Ford, author of Rise
of the Robots, believe this wave of tech-
27,894
2011
28,680
2012
Source: ‘World Robotics 2013 Industrial Robots’, International Federation of
Robotics 2013. 2013 figures provided to PwC from IFR Statistical Department.
...and some jobs are much more prone to
25,110
2013
nological change will be so profound it
will reach into every part of the labour
market and skew the gains to only the
very richest.
So far, there is not enough evidence to
know whether Mr Nangle or Mr Ford
automation than others ... will be proved right. Indeed, there is no
Average probability of automation by occupation*
across population (%)
sign at all yet that technology is super-
charging productivity by supplanting
Managers, directors and senior officials
workers with machines.
Professional occupations
Decreasing median pay
Associate professional and technical occupations
Skilled trades occupations ‘Spinning jennies or
Process, plant and machine operatives cyborgs — from an
Administrative and secretarial occupations economic perspective
Caring, leisure and other service occupations it is kind of the same’
Elementary occupations
Sales and customer service occupations
If anything, the global economy has
0 10 20 30 40 50 60 70 80 the opposite problem. Growth in labour
productivity — the amount of output
Less likely More likely
generated per worker — has been slow-
* Estimated average probability of automation across occupations using the probabilities
in Frey and Osborne (2013) weighted by UK employment
ing in the developed world and big
emerging economies such as China and
....but labour productivity, which ... especially in mature ... and despite increases in Brazil. The slowdown is partly the con-
has been on a steep rise in the economies .... productivity, the percentage of sequence of the financial crisis, but in
past 100 years, is stalling... people in employment remains some places it began sooner: labour
the same productivity growth in the US started to
Labour productivity and real wages index Growth of labour productivity Employment ratio in the UK since 1801 (%) decline in 2005 as the initial effects of
since 1750 (UK) % the IT revolution began to fade.
1600 4 50 Japan is a more extreme example: in
Labour productivity 1400 Emerging and spite of its reputation as the home of
Real wages developing robotics, Japanese productivity is below
1200 3
countries
45
the OECD average and far lower than
1000 countries such as the US and Germany.
800 2 Of course, it may be that the techno-
World logical breakthroughs have yet to reach
600 40 the workplace en masse. Driverless cars
400
US 1 are not yet replacing jobs, for example,
but it is easy to believe they eventually
200 Other mature could.
1750=100
0 economies 0 35 In some ways, the Sota robots are pio-
1971 80 90 2000 10 13 1801 51 1901 51 2001
neers: how quickly they are adopted by
1800 1900 2000
1750 1850 1950 Trend growth rates are obtained using HP filter, 26 76 26 76 Japanese care homes might give us a
assuming a λ=100. Source: The Conference Board Total Sources: BoE; ONS; Frey and Osborne (2013); Bank calculation; sense of when — and whether — to worry
Hills, Thomas and Dimsdale (2015) Deane and Cole (1967)
FT graphic Photo: Alamy Economy DatabaseTM, May 2015
about the “second machine age”.
to 70 per cent of world’s food needs,
many of these farmers cultivate only a
few hectares of land and own just a
handful of livestock. For these growers,
it is services available through a less
high-tech device, the mobile phone,
which currently offer most promise.
Using simple text message technology,
farmers can receive information on the
latest agricultural commodities prices,
as well as advice on the best seeds to
plant and fertilisers to use in different
conditions.
Mr Warshauer cites Connected
Farmer Solution, a mobile and web plat-
form developed by TechnoServe, Voda-
fone and the United States Agency for
International Development. “It lets
agribusiness and smallholders
exchange information but also lets the
agribusiness and farmer transact over
the mobile,” he explains.
Farmers can be paid for produce over
the phone and the system also helps
them build a credit history, so widening
their access to finance.
“And the agribusiness realises huge
cost savings by having access to all of
these farmers at the click of a mouse,”
adds Mr Warshauer.
However, given the potential for more
advanced digital technologies to
increase agricultural productivity, the
question for policymakers, develop-
ment agencies and food security spe-
cialists is how to make it possible for
small-scale farmers to access these
technologies.
“The full package of how it’s delivered
at the farm level is still not pieced
together,” says Tom Bauer, a principal
investment specialist for diary and farm
investment at the International Finance
Corporation, part of the World Bank
Group.
However, many see collaborative ini-
tiatives as one solution. “Small farmers
individually are going to struggle,” says
Duncan Green, senior strategic adviser
at Oxfam, the aid and development
charity. “But if groups of farmers can
come together to access sensors and
other technologies out there, they’ve got
a better chance of staying competitive.”
Models have yet to be established to
ensure smallholders can access the
technology they need, but Mr Bauer is
optimistic about smart agriculture as a
means of achieving productivity gains:
“Precision and smart agriculture is
probably going to give us the biggest
yield increases we’ve seen since hybrid
and [genetically modified] seeds.”
8 FINANCIAL TIMES Wednesday 20 January 2016