WEDNESDAY 2 DECEMBER 2015 WORLD BUSINESS NEWSPAPER EUROPE

Drug deals Martin Wolf Virtual reality

How Valeant’s rapid rise came Understanding the new global It really is going to be a very big
unstuck — BIG READ, PAGE 7 oil economy — COMMENT, PAGE 9 deal — JONATHAN MARGOLIS, PAGE 10

Chinese make Briefing

big play with i Pressure on Zurich grows as Senn quits
Man City stake Zurich Insurance has been pushed further on to the
defensive after chief executive Martin Senn
resigned yesterday, forcing the Swiss insurer into a
hurried hunt for an external replacement.— PAGE 13;
Chinese investors have made a $400m LEX, PAGE 12; ANALYSIS, PAGE 16
investment in English Premier League
leaders Manchester City just weeks i Bargaining starts over climate accord
after President Xi Jinping visited the Negotiators in UN talks in Paris confronted a host of
club’s academy. divisive issues yesterday as they began work on
The 13 per cent stake in the team’s
parent City Football Group taken by a
consortium of private equity groups val-
$3bn
Valuation of CFG, which
trying to convert a draft text into an agreement for
ministers to finalise next week.— COP21 TALKS, PAGE 5

ues CFG at $3bn and is the first entry owns Manchester City i Security increased in Tehran on Isis fears
into English football by Chinese inves- Police have flooded Iran’s capital amid
tors. The valuation puts City on a par
with the market capitalisation of local
rivals Manchester United.
$400m
Cost of a 13% stake. In
concerns that the country could
become a target for Isis, the Sunni
jihadi group it has taken an active
Football has become a target for Chi- role in fighting.— PAGE 2; DENNIS ROSS,
nese conglomerates and their wealthy 2008 the entire club cost PAGE 9
founders, which some analysts see as an $360m
effort to curry favour with Beijing. i Republican senators raise election stakes
Report page 16 Republican senators Marco Rubio and Ted Cruz
www.ft.com/lombard have created their own momentum and are ready to
Phil Noble/Reuters
capitalise should Donald Trump falter in his bid to
be the party’s presidential candidate.— PAGE 3

Greece threatened with Schengen

i Swiss woes pile pressure on central bank
The pressure on Switzerland’s central bank to react
to expected monetary loosening by the European
Central Bank has risen amid a stalling in the
country’s economic growth.— PAGE 4

suspension over migrant response i Investors look for commodities clarity

Investors are wondering whether the current gloom
in the commodities sector represents the nadir
before a recovery or a shift to a “new normal”.
—PAGE 24; MARTIN WOLF, PAGE 9; PRICES FLOUNDER,PAGE 14

3 Athens urged to strengthen borders 3 Frustration at country’s failure to accept EU help
ALEX BARKER AND DUNCAN ROBINSON
BRUSSELS
KERIN HOPE — ATHENS
The EU is warning Greece it faces sus-
pension from the Schengen passport-
free travel zone unless it overhauls its
migration crisis response by mid-
December, as frustration mounts over
Athens’ reluctance to accept outside
support.
Several European ministers and sen-
ior EU officials see the threat of pushing
out Greece over “serious deficiencies” in
border control as the only means left to
persuade Alexis Tsipras, Greece’s prime
minister, to deliver on his promises and
take up offers of help from the EU.
If the EU follows through on its threat,
it would mark the first time a country
has been suspended from Schengen
i Nikkei pledges ‘quality growth’ with FT
The chairman of Nikkei Group said his employee-
owned company would pursue “quality growth”
since it was established in 1985. The on Friday, are to make clear that more were allowed to patrol the country’s bor- with the Financial Times, after the Japanese group
challenge to Athens comes amid a big- drastic measures will be considered if ‘We cannot ders, as well as sensitivity over the long- completed the acquisition of the publisher.— PAGE 15
ger rethink on tightening joint border Greece fails to take action before a sum- tolerate one running dispute over Macedonia’s name
control to ensure the survival of Schen- mit of EU leaders in mid-December, and suspicions about Turkish designs
gen. The European Commission will this according to four senior European dip- of the on certain Greek islands, including Les-
Datawatch
month propose a joint border force lomats. The suspension warning has member bos, point of entry for many migrants.
empowered to take charge of borders, been delivered repeatedly to Greece this Eastern European leaders have been The renminbi becomes The renminbi was this
potentially even against the will of front- week, including through a visit to Ath- countries Greece’s most vocal critics. On Sunday a reserve currency week accepted by the
line states such as Greece. ens by Jean Asselborn, foreign minister openly Robert Fico, prime minister of Slovakia, Currency allocation in IMF’s
Special Drawing Right (%)
IMF into the basket of
elite currencies used to
Greece’s relatively weak administra- of Luxembourg, which currently holds said “it is high time” to evict Greece
tion has been overwhelmed by more the EU’s rotating presidency. refusing to from Schengen, adding that all member US dollar Sterling Renminbi calculate the fund’s
reserve asset, the
than 700,000 migrants crossing its fron- One Greek official strongly denied fulfil its states were privately in agreement on Euro Yen
100 Special Drawing Right.
tiers this year. Given the severity of the accusations of a lack of co-operation the issue. “We cannot tolerate one of the
crisis, EU officials are vexed by Athens’ and said claims Mr Tsipras has failed to obligations member countries openly refusing to
80
60
Although largely
symbolic, the move
refusal to call in a special mission from meet pledges made at a summit of to protect fulfil its obligations to protect the 40
20
reflects China’s
Frontex, the EU border agency; its western Balkan leaders last month are Schengen borders. In such a situation,
unwillingness to accept EU humanitar- “untrue”. Schengen the Schengen area is useless.” The current ... and from
0
progress towards full
integration with the
ian aid; and its failure to revamp its But another official acknowledged the borders’ Additional reporting by Stefan Wagstyl SDR basket... Oct 2016 global financial system
system for registering refugees. foot-dragging. He said it stemmed from in Berlin and Peter Spiegel in Brussels Source: IMF Report page 4
EU home affairs ministers, who meet a legal requirement that only Greeks Isis fears page 2

Brazil’s record fall in GDP puts it on

track for worst recession since 1930s
JOE LEAHY — SÃO PAULO Brazil’s statistics agency, the IBGE, “It seems likely that GDP will fall by
said yesterday that GDP in the three something like 3.5 per cent this year
Brazil’s gross domestic product fell by a
months to September fell 1.7 per cent [rather than the 2.5 per cent we had
record 4.5 per cent year-on-year in the
against a revised second quarter, worse expected],” Capital Economics, a Lon-
third quarter, confirming fears that
than analyst expectations. The year-on- don-based research house, said in a
Latin America’s largest country is on
BlueCrest to oust external track for its worst recession since the
year fall was “the biggest since the start note.
hedge fund investors of the historical data series in 1996”, the Worryingly for Brazil’s policymakers,
1930s.
IBGE said. the declines were across the board, with
Report i PAGE 13 Lower commodity prices, fiscal con- The slowdown is generating a storm of agriculture contracting 2.4 per cent
traction and the fading of a consumer negative economic data. Unemploy- compared with the previous three
credit boom have battered what was ment rose to 7.9 per cent in September, months while industry fell 1.3 per cent
Austria €3.60 Macedonia Den220 once one of the world’s fastest-growing up from 4.7 per cent in October last year, and services dropped 1 per cent.
Bahrain Din1.7 Malta €3.50
Belgium €3.60 Morocco Dh43 economies. Brazil has also taken a hit inflation is running at more than 10 per While Brazil’s problems are largely of
Bulgaria Lev7.50 Netherlands €3.60
Croatia Kn27.50 Nigeria Naira715 from the sweeping “Car Wash” investi- cent for the first time since 2002 and its own making, it is not the only big
Cyprus €3.50 Norway NKr34
Czech Rep Kc100 Oman OR1.50 gation into corruption at Petrobras, the Brazil’s government budget deficit is emerging economy to suffer from the
Denmark
Egypt
DKr32
E£20
Pakistan
Poland
Rupee 250
Zl 18 state-owned oil group, which has para- now 9.5 per cent of GDP. end of the commodities supercycle and
Finland
France
€4.10
€3.60
Portugal
Qatar
€3.50
QR15 lysed congress and the corporate sector. The poor third-quarter figures pile slowing growth in China. Russia is expe-
Germany
Gibraltar
€3.60
£2.70
Romania
Russia
Ron17
€5.00 The scandal has also begun to spread more pressure on Dilma Rousseff, Bra- riencing its first recession since 2009
Greece
Hungary
€3.50
Ft990
Saudi Arabia
Serbia
Rls15
NewD420
to the financial services industry, zil’s left-leaning president, who is trying amid low oil prices and western sanc-
India
Italy
Rup170
€3.50
Slovak Rep
Slovenia
€3.60
€3.50
with the arrest last week of billionaire to implement fiscal austerity measures tions — although officials say the econ-
Kazakhstan
Kenya
US$5.50
Kshs300
Spain
Sweden
€3.50
SKr37
banker André Esteves, chief executive while battling low approval ratings and omy will return to growth next year.
Kuwait
Latvia
KWD1.50
€6.99
Switzerland
Tunisia
SFr5.90
Din7.50
of investment bank BTG Pactual. calls for her impeachment in Congress. Edging closer page 4
Lebanon LBP7500 Turkey TL10
Lithuania €4.30 UAE Dh15.00
Luxembourg €3.60

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INTERNATIONAL
GLOBAL INSIGHT
Attack fears
TURKEY

Tehran beefs up anti-terror security David

Iran denies its troops beefed up to ward off “any possible
threat” and to make the citizens “feel
are in Syria and Iraq but
admits advisers are there
secure”. “These antiterrorist measures
will continue as long as needed,” he said,
adding this did not mean an attack was
MONAVAR KHALAJ — TEHRAN imminent. “Tehran enjoys complete
security.”
Iran’s capital Tehran has seen an
unprecedented tightening of security
amid concerns that a country that has
Mainly Shia Iran has been free of
much of the violence that has affected
the region, particularly in Iraq and in
taken an active role in the fight against Syria, Tehran’s biggest Arab ally.
Isis could become a target for the terror But recent attacks claimed by Isis,
Gardner
Iranian deaths — at least 50 so far — ‘These tyrdom anniversary of Imam Hussein,
raises questions about a deeper military grandson of the Prophet Mohammed
antiterrorist
involvement. Observers say that, frus-
trated with Syria’s weak and corrupt
military, Iran has also been recruiting
measures
and the third Shia Imam.
Unlike in previous years, Iran has
banned pilgrims from crossing the Iran-
Ankara wedded to
militia forces in an effort to keep Syria’s
President Bashar al-Assad in power.
will
continue
Iraq border without passports and
proper visas.
fighting Kurds but
Iran’s strategy has long been that
fighting its enemies outside its borders
lessens the risks of an attack at home.
as long as
Rumours have also been circulating
on social media that some airports could
be targeted, as well as the shrine of
reluctant to target Isis
“We strengthen our defensive strong-
needed’ Imam Reza in the city of Mashhad,
holds outside our borders because if Hossein Iran’s most important Shia holy site.
Sajedinia,

T
group. including last month’s terror rampage in Iran did not go to fight Daesh [Isis] Iranian officials say that despite the urkey, a Nato ally and EU candidate-member
Police have flooded the city in recent Paris, have heightened concerns that there, we should welcome them on our Tehran police threat, their security measures have at the crossroads of Europe and the Middle
days, with armed officers wearing bul- the Sunni jihadi group could target Iran. soil,” Ali Akbar Velayati, senior foreign commander prevented Isis from mounting attacks. East and with Russia to its north, is at the cen-
letproof vests stationed on streets and Turkey, Tunisia, Lebanon and Egypt policy adviser to Ali Khamenei, Iran’s “They [Isis] have always threatened tre stage of two dramas uppermost in Euro-
standing guard outside underground have been suffered Isis attacks this year. supreme leader, said this week in Syria. attacks but they have never had the pean minds: the Syrian refugee crisis and the
stations. Tehran insists it has not sent troops to The heightened security comes as at power to resort to any measure against menace of Isis, which is defending its jihadi state by attack-
Hossein Sajedinia, Tehran’s police Iraq or Syria, although it has admitted to least 1.5m Iranian pilgrims travel to Iraq Iran,” Abdolreza Rahmani-Fazli, Iran’s ing its enemies abroad, from Paris to Beirut.
commander, acknowledged this week- the presence of military advisers in both to take part in religious rituals today to interior minister, said last week. Turkey is literally on the frontline, with jihadis using its
end that police numbers had been countries. But the increasing number of commemorate the 40th day of the mar- Comment page 9 territory to go into Syria and refugees using Turkey to flee
to the EU. Isis has carried out three suicide bombings in
Turkey since the summer. Though formally part of the US-
led coalition to fight Isis in Iraq and Syria, Turkey’s partici-
Military strategy pation comes up short. The EU, overlooking the way in
which President Recep Tayyip Erdogan’s authoritarianism

US boosts forces in Iraq and Syria to battle jihadis
GEOFF DYER — WASHINGTON
The US will send more special opera-
tions forces to Iraq and Syria to fight
the Islamist militants of Isis, US defence
secretary Ashton Carter said yesterday.
Mr Carter said a “specialised expedi-
tionary targeting force” would be
deployed to help Iraqi and Kurdish
forces fighting Isis and which could also
be used in Syria as well.
The announcement is the latest in a
series of steps to escalate gradually the
US military campaign, which has
included increased air strikes against
Isis’s oil infrastructure. Particularly
since the Paris terrorist attack, the
Obama administration has faced pres-
sure from Congress and some former
officials to do more to try to defeat Isis,
with some Republican politicians call-
ing for a US ground force to be deployed
to Iraq and Syria.
Instead, the Obama administration is
doubling-down on its strategy of using
air power, limited deployments of US
special forces and aid to local partners.
In Syria, US officials believe if they
and the forces they are backing are able
to establish greater momentum against
Isis, it will give the administration
greater leverage in the diplomatic proc-
ess, which is trying to find a political
solution to the country’s civil war.
Mr Carter did not give any figures for
the new group of special forces, which is
in addition to the up to 50 troops the US
announced in October would go to Iraq
to assist groups of Sunni and Kurdish
forces the US is working with.
Speaking at a congressional hearing,
Mr Carter said the “expeditionary”
force would conduct raids against Isis
locations, attempt to capture leaders of
the group, free hostages and gather
intelligence. As well as working with the
Iraqi and Kurdish forces, it would be
able to conduct “unilateral operations”
in Syria. “That creates a virtuous cycle
of better intelligence, which generates
more targets, more raids, more momen-
tum,” he said. “It puts everyone on
notice in Syria. They don’t know who is
going to be coming in through the win-
dow at night.”
Mr Carter said Turkey needed to do
more to close its border with Syria so
that Isis fighters cannot move in and out
of the country. US-trained forces have
begun operations to try and take back
from Isis the one pocket of territory on
Syrian fighters the Syrian border with Turkey that it regionally led coalition to intervene to
opposed to still controls. But US officials have fight terrorism. He said foreign interfer-
Bashar al-Assad expressed frustration that Turkey is not ence such as a US-led ground interven-
target the doing more on its side of the border. He tion was no longer “feasible”, but the
regime’s forces also urged Saudi Arabia and the Gulf Saudi-led coalition — which includes the
in Aleppo states to do more to help, saying that UAE — that is fighting Shia Houthi
Below: US they had been more focused on Yemen. rebels in Yemen was “an alternative
defence The United Arab Emirates said on model for us as nations”.
secretary Sunday it would send ground troops to General Joseph Dunford, the new
Ashton Carter Syria. Anwar Gargash, UAE minister of chair of the joint chiefs of staff, said the
yesterday — Ahmed state for foreign affairs, said the UAE air strikes against Isis energy infrastruc-
Hasan Ubeyd/Anadolu
Agency/Getty Images
was pushing for a deal, but would also ture had affected 43 per cent of the “rev-
back international efforts to set up a enue stream” that Isis has generated
from selling oil. Air strikes had also hit
cement and other industries that were
generating money for the group.
Speaking at a press conference in
Paris, President Barack Obama
defended the US strategy, saying the
military’s ability to use air power against
Isis had been constrained by the lack of
intelligence on the ground in Syria,
which was improving.
He also warned Russia it risked an
Afghanistan-style quagmire in Syria if it
thought the Assad regime could win the
conflict with Russian support. In the
month of so since Russian air strikes
began in Syria, he said the situation had
not changed much, while Russia had
seen a commercial plane and a jet
fighter shot down.
Referring to a meeting on Monday
with Russian president Vladimir Putin
on the sidelines of the climate change
conference in Paris, he said: “I think Mr
Putin understands that, with Afghani-
stan fresh in the memory, for him to
simply get bogged down in an inconclu-
sive and paralysing civil conflict is not
the outcome that he’s looking for.”
Mr Obama, who met Turkish presi-
dent Recep Erdogan yesterday, urged
Turkey to find ways to calm tensions
with Russia following the shooting down
last week of a Russian fighter jet by
Turkish forces.
The US supported Turkey’s right to
defend itself, he said, but he also said the
two nations should “work together to
de-escalate tensions and find a diplo-
matic path to resolve this issue”.
Additional reporting by Simeon Kerr in
Dubai
has trampled on the rule of law and freedom of expression,
has just cut a deal in which Turkey, already host to 2.2m
Syrian refugees, will act as a holding pen for the migration
exodus still to come.
Dramatic events in the past week highlight how wobbly
an ally Turkey is. First, the Turkish air force shot down a
Russian warplane that violated its air space. Second, Can
Dundar, editor of Cumhuriyet, one of less than a handful of
independent newspapers extant in Turkey, and its Ankara
bureau chief Erdem Gul, were imprisoned on espionage
charges. Third, Tahir Elci, a leading human rights lawyer
in the mainly Kurdish south-east of Turkey, was shot dead.
Each incident is a reminder of Turkey’s reluctance to take
on Isis and instead fight Kurdish nationalism on both sides
of its border with Syria.
Beyond rounding up Isis suspects who until relatively
recently had moved
inside Turkey with some
ease, the government has
US is showing signs
taken no direct action to of exasperation
respond to October’s Isis
bombing in Ankara,
with failure to seal
which killed 102 pro- border with Syria
Kurdish activists protest-
ing against the resump-
and act against Isis
tion of fighting in the
south-east between security forces and Kurdish insur-
gents. The trespassing in Turkish air space of Russian jets
— in Syria since September to repel rebel advances against
the regime of Bashar al-Assad — was, by contrast, consid-
ered an intolerable breach of sovereignty.
The jailing of the Cumhuriyet journalists, for publishing
evidence of arms deliveries to Syrian Islamist fighters by
Turkey’s national intelligence agency (MIT), is one of
many instances of Mr Erdogan’s tendency to shoot the
messenger. Prosecutors and policemen investigating the
case have been in jail for more than a year, joined last
weekend by two generals and a colonel. Speaking to teach-
ers last week, the president said: “So what if the MIT trucks
were filled with weapons?”
The US is showing signs of exasperation with Ankara’s
failure to seal the border with Syria and act against Isis,
Russia president Vladimir Putin says Mr Erdogan and Tur-
key are “accomplices of terrorists”, and a senior EU official
says Turkey was “a spoiler” at last month’s diplomatic
summit in Vienna to chart a transition out of Syria’s civil
war. But, the EU official says, there is no more room for
Turkey to play what he called “double games”. The “migra-
tion action package”, aside from giving Ankara €3bn to
help manage the refugee influx, will supposedly reopen
stalled EU accession talks on the rule of law and funda-
mental freedoms, exposing Turkey to intrusive scrutiny.
After the Vienna summit, which Iran attended for the
first time, the EU official says: “If Turkey continues play-
ing double games, that will play very badly.”
Yet there is little to suggest any shift in Turkey’s judg-
ment that Syrian Kurdish advances along its southern bor-
der, as fighting reignites with Kurdish insurgents in south-
east Turkey, are a greater threat than Isis, or that Mr
Erdogan regards the rediscovered relationship with the EU
as anything more than transactional. “Erdogan has shown
he is not willing to share power with anyone,” says one
prominent Turkish analyst, “much less the European
Union.”
david.gardner@ft.com

House of Commons vote

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Cameron expected to win mandate for British air strikes
JIM PICKARD AND JOHN MCDERMOTT
David Cameron is expected to win a
vote in the House of Commons today
that will give the British government a
mandate for military intervention in
Syria.
The UK prime minister is likely to claim
that he has obtained the “clear major-
ity” to approve RAF air strikes against
Isis in Syria.
His breakthrough came on Monday
afternoon when Jeremy Corbyn, the
anti-war leader of the opposition
Labour party, agreed to grant his deeply
divided MPs a free vote to avoid several
senior resignations.
A significant clutch of Labour MPs
will now join the majority of MPs from
Mr Cameron’s ruling Conservative party
to back the extension of RAF air strikes
against Isis in Iraq to Syria.
Yet the raw numbers of the vote will
belie the deep unease felt by many MPs
of all parties about the prospect of
entering another military conflict, espe-
cially given the absence of an obvious
exit strategy.
Many Tory parliamentarians will cast
their votes with reluctance, scepticism
and concern that Britain has not learnt
the lessons of recent history.
“Not many people are satisfied that
bombing will do any good whatsoever,”
says one Conservative MP. “But on the
whole, people will go with it with consid-
erable unease.”
Parliamentary authorisation applies
only to air strikes and excludes the use
of ground troops.
Mr Corbyn capitulated on Monday to
avert a rash of resignations in Labour
that would have undermined his
already precarious grip over the party,
which he has led since September.
As former chair of the Stop the War
coalition, which was set up to oppose the
first Iraq war, the Labour leader is a pac-
ifist in all but name.
He believes the government has not
made a convincing case for intervening
in the prolonged, multi-faceted civil
war. He has criticised the prime minis-
ter’s argument that there are 70,000
moderate Syrian rebels ready to fill any
vacuum created by military action.
But Mr Corbyn only has grudging sup-
port among many of the 231 Labour
MPs in the House of Commons; he was
elected as leader by the party’s more
radical grass roots. A revolt by some of
his most senior colleagues — the
“shadow cabinet” — forced Mr Corbyn
to back down on Monday and allow a
free vote by MPs.
That made it almost certain that Mr
Cameron will have the support he needs
to go ahead with the air strikes after
more than a year of pushing for a vote.
Jeremy Corbyn:
the anti-war leader
of the opposition
Labour party is
allowing his MPs to
vote as they please
Yet the number of Labour MPs pre-
pared to back the government could be
as low as 30 or 40 — down from an initial
estimate of 100 — amid claims of intimi-
dation by supporters of Mr Corbyn.
The Labour leader warned on Tues-
day that pro-bombing MPs would have
to answer to party members if they
ignored grass roots opposition to mili-
tary action. There would be “no hiding
place” if they voted with the govern-
ment, he said.
But Hilary Benn, shadow foreign sec-
retary, warned that “inaction has a cost
in lives, too”. The two senior Labour col-
leagues will argue against one other in
today’s vote in a bizarre parliamentary
precedent.
The prime minister had previously
warned that defeat would deliver a
“propaganda coup” to Isis.
For Labour MPs, Tony Blair’s drive in
2003 to join the US-led invasion of Iraq
remains politically corrosive. The view
of that intervention as disingenuously
sold and maladroitly planned haunts
the opposition. Conscious of the spectre
of the war he supported when a mere
MP, Mr Cameron said last week: “Let us
not look back to Iraq and 2003. We have
to separate — in our minds, our actions
and our votes — the case in front of us
now from what people feel they were
told back in 2003.”
And yet for Conservatives, a more
recent intervention by a prime minister
often looms larger: Mr Cameron’s deci-
sion in 2011 to take military action in
Libya against the regime of Muammer
Gaddafi. That decision is now seen by
many MPs as hasty, emotional and
taken without proper planning.
Editorial Comment page 8
Wednesday 2 December 2015
Republican contenders
Cuban-American pair await demise of Trump
Rubio and Cruz emerge as
likely favourites should
tycoon and Carson fail
DEMETRI SEVASTOPULO — ORLANDO
It was quintessential Donald Trump.
When the tycoon took the stage at a
recent Florida marquee political event,
he mocked his presidential rivals for
failing to fill the hotel ballroom earlier
that day.
“I was watching on television about
three hours ago. I was watching other
candidates. This place was empty and
now it’s full,” Mr Trump said with his
trademark swagger.
But he had ignored an inconvenient
truth. While some of the lower-tier
candidates had struggled to pack the
venue, throngs of Republicans had
poured into the cavernous room in
Orlando to listen to Marco Rubio and
Ted Cruz — two Cuban-American fresh-
man senators who have emerged from
the pack behind the billionaire and Ben
Carson, his closest rival who has
recently slipped in the polls.
While Mr Trump retains a command-
ing lead in the polls, many Republicans
see the senators as contenders-in-wait-
ing who will fight each other for the
nomination if party members sour on
Mr Trump and Mr Carson by early Feb-
ruary when the first votes are cast in
Iowa and New Hampshire.
The changing nature of the Republi-
can race became stark recently as the
senators started trading barbs. After the
Paris terror attacks, Mr Rubio accused
Mr Cruz of hurting US security by help-
ing pass a law that limited the govern-
ment’s ability to spy on Americans.
“There are Republicans, including Sena-
tor Cruz, that have voted to weaken
those programmes,” Mr Rubio repeated
on Monday.
Just hours before the Paris massacre,
Mr Cruz had launched the first salvo,
accusing Mr Rubio at the Orlando event
of having worked with President Barack
Obama — a cardinal sin for hardline
conservatives — to try to pass immigra-
tion reform, which critics label an
“amnesty”. The blast from Mr Cruz was
a departure from his tendency to treat
his Republican presidential rivals with
kid gloves, and it appeared to mark a
new stage in his well-funded campaign,
which has a strong base of individual
donors and significant financial backing
from super-Pac fundraising groups.
Over the summer, while the media
focused on Mr Trump and his devastat-
ing put-downs of Jeb Bush, the former
Republican frontrunner, the two sena-
tors were working hard to generate the
grass-roots and financial support
needed to sustain campaigns through
the primaries. “They are more than con-
tenders-in-waiting,” says Frank Luntz, a
Republican race
Poll average
Trump Rubio Cruz
Carson Bush
30
25
20
15
10
5 difference between the men. Earlier this
Sep 2015 Nov
Source: RealClear Politics
Espionage
US presses China on cyber crime
GINA CHON — WASHINGTON
US officials have pressed their Chinese
counterparts to improve co-operation
on cyber-economic espionage in a his-
toric first round of talks yesterday
aimed at stopping the activity.
Guo Shengkun, China’s state councillor
and minister of public security, met
Loretta Lynch, US attorney-general, Jeh
Johnson, homeland security secretary,
and representatives from the Federal
Bureau of Investigation and the US
intelligence community in the gathering
at the US justice department.
They discussed the timeliness and
quality of responses to requests for
information for malicious cyber activity
in what US officials described as a can-
did conversation on ways to improve co-
operation.
It was the first meeting of its kind
since US President Barack Obama and
Chinese President Xi Jinping pledged in
September that their countries would
not knowingly engage in cyber-
economic espionage. As part of that
agreement, Ms Lynch and Mr Johnson
were appointed co-chairs of the joint
cyber dialogue with China.
Yet US law enforcement and intelli-
★ FINANCIAL TIMES 3
INTERNATIONAL
against the Iran nuclear deal, in what
was seen as an effort to position himself
to later pick up Trump supporters.
Some analysts see Mr Cruz as the nat-
ural recipient of the working class vot-
ers who form the core of Mr Trump’s
supporters and the evangelicals behind
Mr Carson.
But they think Mr Rubio is more likely
to inherit more traditional Republicans
who have backed Mr Bush. And as Mr
Bush fails to gain traction, establish-
ment Republicans increasingly see Mr
Rubio as the party’s standard bearer.
Larry Sabato, a University of Virginia
politics expert, says if the election turns
“normal” — under the “big assumption”
that the outsiders lose steam — Mr
Rubio and Mr Cruz will emerge as the
contenders. “If these two are finalists,
it’s easy to see that what’s left of the
party establishment will line up with
Rubio. He’s more saleable in a general
election,” Mr Sabato says.
“Cruz has appeal in the strongly
Republican red states, while Rubio
could compete in competitive purple
states. GOP leadership believes Rubio
would have a much better chance
Skilled performers: Ted Cruz, left, and Marco Rubio have shown an ability to think quickly on their feet in the presidential debates — Mark Kauzlarich and David Becker /Reuters against Clinton.”
Republican pollster. “The rise of Rubio
mirrors the fall of Bush . . . and the rise
of Cruz mirrors the fall of Carson among
evangelicals. If Rubio wins in Florida
and Cruz in Texas — both scenarios rea-
sonably likely — game on.”
When candidates filed their finances,
Mr Cruz and Mr Rubio both had more
cash on hand than Mr Bush, while the
Texan senator almost out-raised the
former Florida governor, who had been
a fundraising juggernaut. In the presi-
dential debates, they have both comple-
mented their campaign finances with
skilled performances, demonstrating an
ability to think quickly on their feet.
The two senators are similar beyond
their political positions and shared age
of 44. Both impress voters with compel-
ling stories about being the sons of pen-
niless immigrants who could not speak
English but worked hard to give their
children an education. Both are lawyers
who overcame underdog status to win
Senate seats with support from the anti-
establishment Tea Party movement.
But that is where the similarities end.
Despite their shared Hispanic heritage,
Mr Cruz is unable to speak fluent Span-
ish, unlike Mr Rubio who uses it effort-
lessly on the campaign trail. And while
Mr Rubio is liked by his Republican col-
leagues, Mr Cruz is reviled to an extent
that some party senators have been
known to walk out of the Senate dining
room when the Texan politician enters.
In what some see as an effort to try to
combat the perception that he lacks the
natural charisma of Mr Rubio, Mr Cruz
has shown flashes of humour, including
joking in the fourth presidential debate
that one of his flaws was that he was “too
agreeable, easy going”.
“He is turning. With the last debate I
saw Ted Cruz turning into somebody a
little bit more comical, a little bit more
casual, and I like that,” says Elizabeth
Young, 71, a Florida Republican who has
known Mr Rubio for years but likes both
men, after listening to the senators in
Orlando. “I saw that here again today.
Marco has that naturally.”
While the Texan has been willing to
take on Mr Rubio, he has avoided chal-
lenging Mr Trump, illustrating another
year, the media wrote about a “bro-
mance” between Mr Cruz and Mr
Trump after they appeared at a rally
gence officials say they have not seen a
change in behaviour since the Septem-
ber pledge. Cyber security firm Crowd-
Strike claimed in October that China
was still engaging in hacks, including
seven attempted breaches at companies
in the technology or pharmaceuticals
sector.
Curbing cyber attacks thought to
emanate from China has been a thorny
issue in relations between the two coun-
tries. Mr Obama had considered impos-
ing sanctions on Chinese companies
before Mr Xi’s visit. But the administra-
tion held off after last-minute meetings
aimed at finding a resolution, and amid
concern that such a move would harm
relations. Mr Johnson said this month
time would tell if Beijing was upholding
its end of the deal.
Breaches at US Steel, insurer Anthem,
medical device maker Medtronic and
other companies have been blamed on
China. Beijing denies the accusations.
Some US lawmakers and Republican
presidential candidates have criticised
the administration for not being
tougher on China, which the FBI
recently claimed was responsible for a
53 per cent rise in cyber-economic espi-
onage cases.
4 ★ FINANCIAL TIMES Wednesday 2 December 2015

INTERNATIONAL

Brazil edges closer to deep recession

Policy dilemma

Third-quarter GDP data signal grim outlook for Rousseff in nearly all sectors of economy
JOE LEAHY — SÃO PAULO
With economists scrambling to revise
forecasts for a deeper contraction this
year, Brazil is in danger of not only suf-
fering its worst recession since the 1930s
but of entering into an outright depres-
sion, analysts say.
Grim third-quarter GDP data yester-
day show almost every sector of the
economy under pressure. This even
includes exports, which were expected
to come to the rescue after the country’s
currency, the real, lost about 52 per cent
of its value against the dollar this year.
“Imports fell in an accentuated man-
ner in the third quarter but exports,
although they are more competi-
tive . . . did not react to the strong
depreciation in the exchange rate,” says
Andres Osorio, Latin America commer-
cial director at Maersk Line, the con-
tainer shipping company.
The GDP figures add to growing pres-
sure on left-leaning president Dilma
Rousseff, who is facing record low
approval ratings, calls to impeach her in
congress and a sweeping corruption
investigation into state-owned oil com-
pany Petrobras that has implicated
some of the country’s most powerful
politicians and business people.
The latest to be dragged into the
probe was André Esteves, head of inde-
pendent investment bank BTG Pactual,
who was arrested last month.
The collapsing GDP figures will com-
plicate Ms Rousseff’s attempts to push
through a fiscal austerity programme
designed to shore up public finances.
The budget cuts are seen as crucial to
implementing a more orderly adjust-
ment following the end of the twin com-
modities and credit booms that fuelled
Brazil’s economy during the first decade
of the century.
Frankfurt council. Bank deliberations
“The performance of emerging mar-
kets makes this year again another year
to forget,” UBS Wealth Management
emerging markets chief investment
officer Jorge Mariscal said. But even
within the underperforming emerging
markets world, Brazil was a negative
“outlier”.
‘Brazil is one of the worst
performers this year
in bonds, currencies
and equities’
“Brazil is one of the worst performers
this year in bonds, currencies and equi-
ties,” Mr Mariscal added.
After winning elections in October
last year by claiming the economy was
in reasonable shape, Ms Rousseff set
about preparing a budget austerity pro-
gramme by hiring fiscal hawk, Joaquim
Levy, as her new finance minister. How-
ever, her narrow win in the election
weakened her grip on congress, which
has passed some of the fiscal tightening
measures but delayed many others,
including tax increases needed to plug a
growing budget deficit.
The slowing economy is undermining
government tax revenues. Ms Rousseff’s
administration is running a deficit of
about 9.5 per cent of gross domestic
product. This is expected to push gross
public debt above 70 per cent and could
lead to further downgrades of its invest-
ment grade credit rating, analysts say.
Standard & Poor’s has already cut its rat-
ing for Brazil to junk while Moody’s and
Fitch have signalled the country is
under review.
“Whether this [the negative third-
quarter GDP figure] is going to be suffi-
cient to scare politicians enough to put
together an adjustment is anyone’s
guess,” said Mr Mariscal.
He added that UBS was expecting the
economy to contract 4 per cent this year
and believed a 3 per cent fall next year
was also possible.
Others are also revising their forecasts
this year for a deeper contraction. Gold-
man Sachs economist Alberto Ramos
said in a report that the inability of the
government to deliver a stronger fis-
cal adjustment meant the private sector
was bearing the burden of the process,
with industry and employment con-
tracting. Government spending in the
third quarter actually increased 0.3 per
cent in the period compared with the
second quarter, he said.
“What started as a recession driven by
the adjustment needs of an economy
that accumulated large macro imbal-
ances is now mutating into an outright
economic depression,” he wrote.
Swiss growth
woes put
pressure on
central bank
RALPH ATKINS — ZURICH
Switzerland’s economic growth has
stalled following this year’s sharp franc
appreciation, piling pressure on its cen-
tral bank to react swiftly to the Euro-
pean Central Bank’s expected mone-
tary loosening later this week.
Gross domestic product in the affluent
Alpine economy flatlined in the three
months to September, the country’s eco-
nomic ministry reported yesterday. The
previous quarter had seen 0.2 per cent
growth.
The slowdown came as the Swiss
National Bank was braced for tomor-
row’s ECB meeting, which is widely
expected to announce fresh steps to
weaken the euro — which could result in
the franc strengthening again.
Switzerland already has the world’s
lowest official interest rates — with the
SNB imposing a negative rate of minus
0.75 per cent on some banks’ deposits.

ECB to confront ‘seeping pessimism’
Central bankers set to press
case for more monetary easing
amid sluggish recovery
CLAIRE JONES — FRANKFURT
The sluggish pace of the eurozone’s
economic recovery risks inflicting
permanent damage on a region drained
of confidence and beset by low inflation,
according to the central bankers set to
press the case for more monetary easing
by the European Central Bank later this
week.
But when the eurozone’s monetary
policymakers gather at the ECB’s Frank-
furt headquarters for their final deliber-
ations of the year, none of the 25-mem-
ber governing council are likely to look
back on 2015 as a year of abject failure.
A recovery that began in 2014 has
continued, with policymakers quick to
attribute a thawing in credit conditions
to the €1.1tn quantitative easing pack-
age they unleashed in January.
Although unemployment remains
high, official figures published on Tues-
day showed the jobless rate had fallen
from 11.5 per cent in October 2014 to
10.7 per cent 12 months on. Moreover,
the region’s resilience to this summer’s
Greek crisis is seen as evidence the euro-
zone is on a much firmer footing than at
any time since the global financial crisis.
Despite such improvements, growth
has slowed and risks such as a China-led
slowdown in emerging markets
threaten to derail the recovery alto-
gether. The governing council will
almost certainly beef up its QE package
and could cut its deposit rate by at least
10 percentage points from its current
level of minus 0.2 per cent.
The fear held by some on the council
is that the sluggish pace of the recovery
risks lasting damage not only to growth
prospects, but also to the central bank’s
credibility to hit an inflation target of
just below 2 per cent. These include
Mario Draghi, ECB president, who has
emphasised in recent weeks that the
current upswing is the weakest for more
than 25 years, and Peter Praet, his chief
economist, who has warned of a perni-
cious “seeping pessimism” taking root.
Mr Praet sees evidence of this pessi-
mism in a reluctance to invest. While
businesses contend that they are oper-
ating close to full capacity, the ECB con-
tends that resources are being vastly
underused. His worry is that without a
pick-up in confidence and productivity-
People visit an enhancing structural reforms by gov-
employment ernments, the region will remain
agency at a fair plagued by anaemic growth and high
this summer in unemployment. A vicious cycle will
Lille. Emerging develop, with economic weakness rein-
market woes forcing the negativity.
threaten to In this gloomy scenario, demand
derail eurozone remains too fragile to return inflation
growth — Philippe towards the ECB’s target.
Huguen/AFP/Getty
While eurozone inflation has picked
up from a trough of minus 0.6 per cent
hit earlier this year, and now stands
broadly in line with rates recorded in
other advanced economies at just above
zero, Mr Praet and Mr Draghi warn of
the length of time the ECB has under-
shot its inflation target. Inflation has
been below 1 per cent for two years.
Mr Draghi has made clear that offi-
cials must “do what we must” to return
inflation to target as quickly as possible
to counter these threats.
Some on the council — including both
German members of the group — are
unconvinced.
The focal point for this week’s policy
discussions will be Mr Praet’s presenta-
tion of the latest round of his staff’s fore-
casts for inflation and growth, made
once a quarter. While growth slowed in
the third quarter, other economic data
have been in line with the ECB’s Septem-
ber projections.
“If anything, growth for 2016 should
be revised upwards due to the weaker
euro and lower oil prices,” Carsten Brze-
ski, economist at ING DiBa, said. “Put
differently, if the staff projections show
weaker GDP growth, then something is
really wrong in euroland.”
Mr Brzeski added: “In the same con-
text, inflation for 2016 could be slightly
lower, and unchanged for 2017.”
The September projections were for
inflation of 0.1 per cent this year, 1.1 per
cent in 2016 and 1.7 per cent in 2017. For
But the weak GDP data reinforced the
need for the SNB to also ease policy, said
Oliver Adler, economist at Credit Suisse
in Zurich. “The questions are: how they
will do it, when they will do it and will it
be an automatic response to the ECB?”
Eurozone growth Swiss exporters have been badly hit
and unemployment since January 15, when the SNB unex-
Real GDP Unemployment pectedly abandoned attempts to cap the
(rebased) rate (%) franc’s value against the euro at SFr1.20.
100 12
0% -0.75%
11 Switzerland’s Interest rate
GDP growth in imposed on some
98 the three months bank deposits
10
to September by the SNB
9 The “Frankenschock” saw the franc
96 shoot higher against Europe’s single cur-
8
rency and dollar. Although the franc has
since reversed its gains against the US
currency, it remains more than 10 per
94 7 cent higher against the euro.
2008 10 12 14 15 With the currency strengthening,
Swiss inflation has turned negative,
Inflation with consumer prices falling 1.4 per cent
Annual % change on in the year to October.
consumer price index However, Switzerland’s economy has
avoided a technical recession — defined
as two successive quarters of negative
3
growth. GDP contracted in the three
months to March but then rebounded.
2 Swiss tourism has fared better than
expected with domestic, US and Asian
holidaymakers compensating for falling
1 numbers of visitors from elsewhere in
continental Europe.
0 Details of the GDP figures showed
household consumption expanded by
0.4 per cent in the third quarter, boosted
-1 by spending on healthcare. Goods
2010 11 12 13 14 15 exports expanded by 0.5 per cent but
the economic ministry said this was
Source: Thomson Reuters Datastream driven by chemicals and pharmaceuti-
cals. Exports of watches, jewellery and
‘Inflation growth, the ECB staff expected 1.4 per precision tools had been particularly
cent this year, 1.7 per cent in 2016 and weak, it said.
for 2016 1.8 per cent in 2017. “The underlying trend has not deteri-
could be Bundesbank president and council orated a lot. We have a relatively robust
member Jens Weidmann looks set to domestic economy still in place,” said
slightly argue against more easing on the Daniel Kalt, chief economist in Switzer-
lower, and grounds that little has changed since the land at UBS. “What is more important
autumn. He has said in recent weeks for the SNB will be whether the ECB is
unchanged that he sees “no reason to talk down the more aggressive than the market
for 2017’ economic outlook and paint a gloomy expects.”
picture”. But Mr Weidmann’s stance, The SNB is next scheduled to make a
supported by Sabine Lautenschläger, policy announcement on December 10.
the ECB’s German board member, and a It could push interest rates even further
few heads of other national central into negative territory, but will worry
banks, is likely to be ignored by the about further distorting the Swiss finan-
majority. cial system and may not want to be seen
“Draghi and Praet have become more as acting directly as a result of ECB deci-
focused on the downside risks to infla- sions. The SNB could also broaden the
tion,” said Richard Barwell, economist range of deposits subject to negative
at BNP Paribas Investment Partners. interest rates.
“The mentality now is about taming the Alternatively, it could step up inter-
skew of the outlook — they want to do vention in foreign exchange markets to
more as insurance against those risks.” weaken the franc.

Special drawing rights

China pledges no more renminbi ‘sudden changes’ after IMF decision on currency
LUCY HORNBY AND TOM MITCHELL
BEIJING
JENNIFER HUGHES — HONG KONG
The People’s Bank of China reassured
markets yesterday that there would be
no more “sudden changes” in the ren-
minbi, a day after the International
Monetary Fund voted to include the
Chinese currency in its basket of reserve
currencies.
Yi Gang, deputy governor of China’s
central bank, welcomed the IMF’s deci-
sion as a validation of the country’s
reform efforts, which he pledged would
continue after the renminbi joined the
dollar, euro, yen and pound in the fund’s
special drawing right basket.
“This decision is an important symbol
that recognises the stature of the ren-
minbi and has made us very happy,” Mr
Yi said in Beijing.
“Our attitude towards the exchange
rate won’t change but our market
reforms will continue non-stop,” he
pointed out. “There is no basis for con-
tinued yuan depreciation,” he added.
“Our basic exchange rate policy won’t
change [even as] market-orientated
reforms move continuously forward.”
Following the IMF’s move the cur-
rency slipped 0.2 per cent to Rmb6.4422
against the dollar in offshore trading in
Hong Kong. The PBoC set its daily “fix”
— the onshore rate around which the
currency can trade 2 per cent either side
— at Rmb6.3973 per dollar, its fourth
consecutive slightly weaker rate.
Analysts and investors generally
expect China to allow the renminbi to
weaken gradually against the dollar as a
result of diverging monetary policies in
the Chinese and US economies.
The vote by the IMF board to make
the renminbi the third-biggest currency
in the five-strong basket used to value
the fund’s own de facto currency fol-
lowed months of internal deliberations
and years of lobbying by Beijing.
The renminbi will have a weighting of
10.92 per cent, trumping the yen and
pound. The weightings help determine
the interest rates the IMF charges for
loans to members.
The ruling Chinese Communist
party’s commitment to economic and
financial reforms was called into ques-
tion during a summer in which Beijing
intervened in July to halt a rout on the
Shanghai and Shenzhen stock
exchanges. A month later, the PBoC
orchestrated a one-off devaluation of
the renminbi by 3 per cent against the
dollar, shocking global markets.
Beijing said the August devaluation
was designed to allow it to implement a
new mechanism for setting the daily fix
that would more closely reflect the pre-
vious day’s market moves.
China has been easing monetary pol-
icy to support its slowing economy
while the US Federal Reserve is widely
expected to raise interest rates this
month for the first time since the crisis.
Promoting the internationalisation of
the renminbi is a key element of Bei-
jing’s effort to increase its influence in
the global financial system, alongside
The renminbi joins the IMF’s
basket of reserve currencies
the recently launched Asian Infrastruc-
ture Investment Bank and a “new silk
road” across the Eurasian land mass.
“The renminbi’s importance has been
set,” Mr Yi said. “It will take on a greater
role, especially in our neighbours and
[new silk road] countries.”
Mr Yi argued that the reforms and
SDR inclusion would boost flows around
the renminbi, keeping its exchange rate
relatively stable. “Renminbi reserves
will be raised internationally by central
banks and private institutions,” he said.
“Outward direct investment is also
increasing fast as Chinese people need
international investment options . . . Net
flowswillbestable.”
The vice-governor added that the
central bank would not hesitate to inter-
vene if necessary. “We will respect the
decisive role played by the market,” Mr
Yi said. “But if fluctuations exceed a cer-
tain magnitude or . . . there is unusual
activity in capital flows, the PBoC will
conduct appropriate intervention.”
A somewhat weaker renminbi would
help mitigate the currency’s broader
appreciation on a trade-weighted basis
— the result of its still-close ties with the
dollar. This year the renminbi has weak-
ened about 3 per cent against the dollar,
in line with moves by the yen. The euro,
meanwhile, has dropped about 12 per
cent, providing a boost to eurozone
exporters in the process.
“Today’s outcome should give China
further confidence to let the exchange
rate become more market-driven,” said
Paul Mackel, head of emerging markets
forex research at HSBC. “This is more
important than the SDR outcome itself.”
HSBC expects the currency to fall to
Rmb6.5 against the dollar by the year-
end.
Additional reporting by Wan Li
Editorial Comment page 8
Wednesday 2 December 2015
Action timetable
Nations focus on
divisive issues
in search for
emissions accord
Officials are struggling to
convert their draft intent
into a final agreement
PILITA CLARK AND MICHAEL STOTHARD
PARIS
A day after most of the world’s leaders
delivered a powerful call for action to
stop global warming, the challenge of
turning their rhetoric into a new climate
accord has become painfully clear.
Negotiators from the 195 countries in
UN talks in Paris confronted a host of
divisive issues yesterday as they began
work on trying to convert an unwieldy
draft text into a crisp agreement for
ministers to finalise next week.
These are five of the biggest obstacles.
1 How soon should countries
beef up their emissions
reduction targets?
This is shaping up to be one of the most
difficult issues in the talks.
All but a handful of the countries in
the talks have published climate strate-
gies for the accord, but these do not add
up to enough collective action to avert
dangerous levels of warming.
The EU and many smaller developing
countries say it is thus imperative for
the agreement to require countries to do
a stock take of the impact of their com-
bined action every five years, then push
up their targets as early as 2020.
There is broad agreement a stocktak-
ing review should be done every five
years, but India, China and several
countries in Latin America and the Mid-
dle East want to wait until up to 2030 to
strengthen their targets, a date other
nations say is far too distant.
Developing countries also say they
should be allowed to wait longer than
wealthy ones to toughen their targets, or
only do so if they get financial support
from richer countries, measures those
industrialised countries are resisting.
India, the world’s fourth-largest emit-
ter after China, the US and the EU,
insists developed nations have a historic
responsibility to do more.
“Climate change is not about per cap-
ita incomes, it is about a share of histori-
cal emissions,” Ajay Mathur, a spokes-
man for India’s delegation, told report-
ers yesterday.
2 How much should rich nations
pay developing countries to
deal with global warming?
Developing countries want the accord to
Peatland
Indonesia president to face
questions over effect of fires
AVANTIKA CHILKOTI — JAKARTA
Shortly after taking office last year,
Joko Widodo visited Indonesia’s Riau
province, where he pulled on a pair of
rubber boots, dammed one of the
canals that drain the country’s peat-
land and vowed to end the annual for-
est fires that blight the country.
The president’s plans fell by the wayside
— until the carbon-spewing blazes
returned with a vengeance this summer.
About 2m hectares of land, half the area
of Switzerland, have been ravaged in
recent months, fuelling a dramatic rise
in the country’s carbon emissions. With
the prospect of international censure at
the UN climate change talks in Paris,
Jakarta rolled out ambitious new rules.
They include a ban on further exploita-
tion of peatland and an order that burnt
land be restored. Existing licences to
cultivate peatland are being reviewed
while criminal investigations will be
launched into plantation owners who
breach rules.
But while the reforms are bold, there
is uncertainty over their implementa-
tion; and the scale of the problem means
Mr Widodo is still set to face tough ques-
tions in Paris.
By the end of October, Indonesia was
the world’s fourth-largest emitter of
greenhouse gases, up from sixth only
weeks earlier, according to World
Resources Institute estimates. Fires
have created 1.62bn tonnes of carbon
dioxide equivalent this year.
“It’s impossible,” says Putera
Parthama, director-general at the min-
istry of environment and forestry in
Jakarta. “We will be judged at Paris.”
★ FINANCIAL TIMES 5
COP21 TALKS
Devastation:
Vanuatu in
March after a
cyclone ripped
through the
South Pacific
nation. Barack
Obama says the
US will provide
$30m for
climate risk
insurance
measures in the
Pacific, Central
America and
Africa — Jeremy
Piper/AFP/Getty Images
require rich countries to meet a previ-
ously agreed pledge to deliver $100bn a
year by 2020 of climate finance to less
advanced countries and larger sums
after that.
The EU and the US are wary about
including specific sums in an agreement
that is supposed to last for decades.
They want the accord to acknowledge
that some formerly poor countries are Follow the
growing fast and either will not need cli- debate
mate finance in future, or will even start Latest news
and analysis
providing it themselves. from the
India appears to have accepted the climate talks
$100bn figure will probably not appear ft.com/cop21
in the final accord. However, Mr Mathur
said any climate finance that developing
countries might offer in future would be
purely voluntary and this was “very dif-
ferent from it being part of a final agree-
ment”.
3 Which bits of the new accord
should be legally binding?
The EU wants the accord to require
countries to implement the climate
plans they have tabled.
Other countries, including the US, are
reluctant about including the specific
emissions reduction targets many coun-
tries have in their climate plans — a
move that could strengthen arguments
the accord would require Senate
approval in the US.
4 Will nations agree to phase
out fossil fuel pollution this
century?
The leaders of the Group of Seven rich
nations agreed to this so-called decar-
bonisation goal in June and many
smaller developing countries say the
Paris accord should mirror such an aim.
But India, China and many oil-rich
countries are resisting it.
5 Should a new deal include
support for loss poor nations
may suffer from global warming?
Wealthy countries fear this proposal
could expose them to endless claims for
compensation. Delegates from some of
these nations say they could accept a
reference to loss and damage in a new
accord, as long as it was made “crystal
clear” they would not be liable to pay
compensation.
To try to resolve this, US president
Barack Obama met small island nation
leaders yesterday and said the US would
provide $30m for climate risk insurance
measures in the Pacific, Central Amer-
ica and Africa.
Local farmers have for generations
been clearing land through burning,
which costs as little as Rp600,000 ($44)
per hectare, according to Riau Univer-
sity research, against Rp3.4m for alter-
native methods.
Yet large-scale forest fires have only
become a problem in recent decades, as
huge paper and palm oil plantations
have drained vast tracts of carbon-rich
peatland of water, making it highly
flammable.
This year’s blazes, drawn out by the
El Niño weather phenomenon, are the
second-worst since 1997, when 11m
hectares of land were destroyed amid
one of the most powerful El Niño events
in history.
Some analysts have given Jakarta’s
moves a cautious welcome.
“The announcement of no develop-
ment on peat is huge,” says Andika
Putraditama at the WRI. “It’s the right
way to go.”
Others, however, note that the new
policies will be redundant without
enforcement, which can be a mammoth
task in remote communities where local
governments have limited resources.
“This responsibility should be shared
between the central government, local
government, the corporate business
sector and local communities,” says
Sutopo Purwo Nugroho at the National
Disaster Agency in Jakarta. “They have
to be responsible for their own land.”
Although the reforms sent out a
strong signal on Indonesia’s commit-
ment to tackling climate change ahead
of the Paris talks, campaigners at the
WRI also warn that the details of the
regulations remain unclear.
6 ★
Ukraine conflict
Berlin seeks to avert EU-Moscow spat over trade
Russia is concerned about
an economic deal between
Kiev and Brussels
ALEX BARKER — BRUSSELS
STEFAN WAGSTYL — BERLIN
ROMAN OLEARCHYK — KIEV
Germany is piling pressure on the Euro-
pean Commission to cut a deal with Rus-
sia to avert a flare-up when an EU trade
deal with Ukraine comes into force next
month.
In a bid to resolve the dispute, Berlin
has proposed a joint declaration
between the EU and Russia offering
Moscow the prospect of long-sought
investment and energy concessions to
create a more integrated economic area
from the Atlantic to the Pacific.
The suggestions are outlined in a
November letter, seen by the FT, from
Frank-Walter Steinmeier, Germany’s
foreign minister, to Cecilia Malmström,
the EU’s trade chief.
Berlin’s initiative underlines the con-
tinued political sensitivity of the EU-
Ukraine trade deal for Moscow. The
decision by Viktor Yanukovich, former
Ukrainian president, to pull out of sign-
ing the deal under pressure from Russia
two years ago triggered the protests that
ousted him. The latest talks between Ms
Malmström, Moscow and Kiev aimed at
addressing Russian concerns over how
the deal could affect its trade with
Ukraine ended yesterday without
agreement.
Alexei Ulyukayev, Russia’s economy
minister, warned following the talks
that it was “very probable” there would
be no agreement before the EU-Ukraine
deal was due to enter fully into force on
January 1. He reiterated Moscow’s
threat to scrap preferential trade rules
for Ukraine if that happened.
Pavlo Klimkin, Ukraine’s foreign min-
ister, said Russia had made new and
“absurd” proposals at the meeting.
Mr Steinmeier, who said his initiative
was backed by Angela Merkel, German
chancellor, cast his proposed joint dec-
laration as a way to “create space and
move towards Russia”. But his political
declaration falls short of the legally
binding trilateral deal sought by Mos-
cow.
“By the content of this declaration we
could respond to Russia’s wishes and
begin a closer exchange of views on
FINANCIAL TIMES
INTERNATIONAL
energy and investment protection
issues, even if the [EU-Ukraine trade
deal] does not directly touch on them,”
Mr Steinmeier wrote.
Another important component, he
added, would be “to raise the prospect
of a start to co-operation between the
EU and the Eurasian Economic Union,
in combination with a peaceful solution
in eastern Ukraine”.
The Russian-led EEU is a single eco-
nomic zone created with Belarus and
Kazakhstan.
Mr Steinmeier’s letter, not formally
shared with member states, has
alarmed some eastern European and
Baltic states, which are more hawkish
towards Russia. It was sent before Jean-
Claude Juncker, the commission presi-
dent, issued an invitation to Vladimir
Putin, Russian president, to begin
exploring ways for the EEU and EU to
draw closer once the Minsk ceasefire
accord in east Ukraine was complete.
Linas Linkevicius, Lithuanian foreign
minister, has expressed dismay at Mr
Juncker’s initiative, saying it did not
have the support of EU member states.
Backing Brussels: a pro-EU protester is blocked by police in central Kiev He also noted Mr Juncker’s letter made
during demonstrations two years ago — Alexander Demianchuk/Reuters no reference to EU sanctions against
Nazi text
Hitler’s ‘Mein Kampf’ to be
published again in Germany
STEFAN WAGSTYL — BERLIN
Mein Kampf, in which Adolf Hitler set
out the anti-Semitic and racist ideology
behind his Nazi regime, is to be pub-
lished in Germany next month for the
first time since the end of the second
world war, reigniting debate over one
of the most controversial texts.
Publication of a scholarly version of the
book, with the original text accompa-
nied by voluminous academic notes, has
been mostly welcomed by historians,
but Jewish opinion has been divided.
German justice ministers have
pledged to ensure that general public
access to the text remains limited for
fear of stirring neo-Nazi sentiment.
Aware of the sensitivities involved,
the Institute of Contemporary History
in Munich that will publish the new edi-
tion insisted it is bringing out an “aca-
demic work” far removed from any
“irresponsible” uncritical publication of
Mein Kampf.
Andreas Wirsching, the institute’s
director, said the aim of the new version
— which runs to 2,000 pages, with more
than 3,500 academic notes — was to
counter the influence of the uncritical
originals in second-hand bookshops.
“I think our edition is there to chal-
lenge these editions,” he said yesterday.
Up to 4,000 copies of the new version
will be printed.
Thomas Krüger, president of the gov-
ernment’s Centre for Political Educa-
tion, welcomed the publication of criti-
cal editions, saying it was important to
break “the Mein Kampf taboo”.
He argued that objects which were not
easily available generated “the desire to
possess what is apparently forbidden”.
WrittenbeforeHitlercametopowerin
State aid rules
Tax probes hit business
certainty, warns Luxembourg
VANESSA HOULDER AND
FERDINANDO GIUGLIANO — LONDON
Brussels’ attacks on corporate tax deals
risk undermining business certainty in
Europe, according to one of the states
accused of handing out illegal tax
benefits.
Pierre Gramegna, finance minister of
Luxembourg, said the European Com-
mission’s decision to use the state aid
rules to challenge corporate tax agree-
ments “raises so many issues about pre-
dictability and certainty”.
In October, the commission ordered
Luxembourg to recover €20m–€30m
from Fiat, the car company, after accus-
ing it of using “artificial and complex
methods” for pricing intercompany
transactions — known as “transfer pric-
ing” — to calculate the profits of its Lux-
embourg financing arm.
In an interview with the Financial
Times, Mr Gramegna rejected the com-
mission’s criticism, saying its approach
was problematic. “If the European Com-
mission can make its own interpretation
of the transfer pricing rules, others can
too. This is worrying for companies and
we live in a globalised world.”
He took issue with the commission’s
method of determining the profits of the
Fiat subsidiary. He said: “The method of
Wednesday 2 December 2015
Russia, which the EU must decide
whether to renew in the next two
months.
Dmytro Kuleba, ambassador-at-large
at Ukraine’s foreign ministry, said Rus-
sia could not be “appeased by some new
trade regime”. “The issue is not trade,
but how Europe will look in five years’
time. The Europeans should not be
fooled by Russia’s strategy. The Krem-
lin’s goal is not free trade from Lisbon to
Vladivostok,” he said. “The goal is the
division of Europe between the EU and
Eurasian Union led by Russia, with
Ukraine — if they can’t pull it back — as a
buffer zone at a minimum.”
Eastern European countries view the
EU’s planned “energy union” as a way to
break energy dependence on Russia; the
language in Mr Steinmeier’s declara-
tion, by contrast, appears to accommo-
date Russia as a permanent structured
partner. Elements of Mr Steinmeier’s
draft proposals are beneficial for
Ukraine. An annex calls for the EU,
Ukraine and EEU to explore energy co-
operation that takes account of
Ukraine’s traditional role as an energy
transit and hub country.
Additional reporting by Neil Buckley
1933, it was a bestseller in Nazi times,
with more than 12m copies in circula-
tion. Recognising its central role in Nazi
propaganda, the Allied occupying pow-
ers had the copyright transferred in 1946
to the Bavarian regional government. It
then used its copyright powers to keep
the work out of the hands of would-be
publishers — although, unlike the swas-
tika and other Nazi symbols, it was never
banned.
As copyright lasts for 70 years under
German law, publishers will from Janu-
Hitler’s tome:
the new version
runs to 2,000
pages, with more
than 3,500
academic notes
ary have free access to the original text.
Aware the end of the copyright was
looming, German justice officials last
year agreed to prevent any “uncritical
publicising” of Hitler’s work by means
of anti-incitement laws.
The Central Council of Jews in Ger-
many, the country’s leading Jewish
organisation, did not return a call for
comment. However, its website carries
differing views on Mein Kampf.
In 2008 Stephan Kramer, general sec-
retaryatthetime,welcomedplansforan
academic edition. Four year later Dieter
Graumann, the group’s then president,
was less sympathetic. “I renounce the
publication of this crazy book, which is
soaked through with anti-Semitism and
hate,” he wrote. “[But] if anybody has to
read this book, then it is better to do so in
the framework of parallel critical com-
mentary [of the kind the historical insti-
tutewillpublish]”.
‘transfer pricing’ that was used was an
innovation undermining the usual
interpretation of transfer pricing.”
Mr Gramegna said it remained to be
seen if the inquiries would be approved
by the courts, adding that his govern-
ment was discussing a possible appeal.
The Netherlands — the other state
Brussels has deemed to have breached
state aid rules — has already decided to
challenge the decision. On Friday, it said
it was launching an appeal against the
commission’s decision over a tax ruling
granted to Starbucks, the coffee chain. It
said that, in its opinion, the commission
“does not convincingly demonstrate”
that it had deviated from the law.
Mr Gramegna said the Grand Duchy
was preparing to cut its headline tax in
reforms scheduled for 2017 that will
reflect the international crackdown on
“base erosion and profit shifting”. He
said: “If we want to remain competitive,
we have to reduce nominal taxation
because the base will become larger.”
But he signalled that the tax rates in
effect paid by companies in Luxem-
bourg would not be as low as Ireland’s
12.5 per cent corporate tax rate. He said:
“Taxation is not all a company has to
look at. If [the effective tax rate is] a
couple of points beyond Ireland, we can
be attractive.”
Wednesday 2 December 2015
Mike Pearson upended big pharma with Valeant, ditching costly research for buyout-fuelled growth.
Investors applauded for years, but now critics say his brainchild risks collapse under a $30bn debt pile.
I
t was the end of October and the
crisis engulfing Valeant was about
to become much worse. For weeks,
Mike Pearson, chief executive and
the force behind the pharmaceuti-
cals company’s meteoric rise, had been
battling short-sellers and other critics
who claimed its success was built on a
toxic mixture of outrageous price
increases and unorthodox sales tactics.
The other big question hanging over
Valeant was whether it could cope with
its $31bn debt pile. But what investors
did not know was that Mr Pearson had a
personal debt problem. On October 30,
he received a letter from Goldman Sachs
warning him it was calling in a $100m
loan after the slide in the company’s
stock price triggered a margin call.
Unless he could find the full amount
in cash within 48 hours, the investment
bank threatened to sell roughly 1.3m
Valeant shares that Mr Pearson had
pledged as collateral.
While Mr Pearson was very wealthy
on paper — his salary consisted almost
entirely of Valeant stock — he knew he
could not raise the cash, so he decided to
ignore the letter. Two days came and
went, and nothing happened.
The reprieve did not last. On the first
Thursday in November, Goldman
dumped the entire stake, spooking
other investors and fuelling a sell-off in
Valeant’s shares. It marked the nadir for
a company that had come within touch-
ing distance of a $100bn market value in
the summer, but was now worth little
more than a quarter of that.
Shares in Valeant have since staged a
modest comeback, but they have still
lost more than two-thirds of their value
since the start of August. Many inves-
tors are now asking whether Mr Pear-
son’s radical experiment has run its
course. During his seven years at
Valeant, he has built the company as if it
were a private equity buyout house,
snapping up smaller companies, slash-
ing their costs and generating maxi-
mum profits. Like many “roll-ups” that
have grown through a frenzy of acquisi-
tions, his quest has been aided by the
ready availability of cheap debt.
“Whathappensnowthatthemusichas
stopped?” asks one life sciences investor
who trades the big swings in Valeant’s
share price. “They’re in big trouble once
they stop buying stuff and [have to] run
the business just like anyone else.”
Tweaking the formula
Mr Pearson, a gruff, burly Canadian who
cut his teeth as a McKinsey consultant,
became chief executive of Valeant in
2008 at a time of intense soul-searching
in big pharma. A generation of block-
buster medicines was about to lose pat-
ent protection and huge investments in
drug discovery had unearthed precious
few replacements.
He set out to build a new kind of
pharma company: a lean, low-cost oper-
‘They’ve brought the
whole sector into
disrepute. Investors are
telling other companies,
‘don’t go down that road’’’
ator that grew through perpetual deal
making and superior marketing and
sales rather than in-house science. He
gained a reputation for parsimonious-
ness, recouping the cost of acquisitions
through job cuts and price rises.
Mr Pearson’s hard-charging style
might have made him many enemies in
the life sciences community, but until
recently it generated huge enthusiasm
among investors, which include a string
of hedge funds, such as Bill Ackman’s
Pershing Square, Jeffrey Ubben’s Value-
Act and John Paulson’s Paulson & Co.
Since June 2010, when Valeant
merged with Canada’s Biovail and Mr
Pearson took the helm of the combined
company, its share price has increased
by almost 500 per cent, even accounting
for the recent slide. This is versus 73 per
cent for Johnson & Johnson, the largest
US drugmaker, and 116 per cent for
Pfizer, the number two.
Some investors pushed other pharma
companies to adopt a similar approach.
Several smaller groups copied Valeant’s
playbook, such as Endo, run by an erst-
while protégé of Mr Pearson’s, Mallinck-
rodt and Horizon Pharma. Others
adopted a strategy that mixed its low
cost base, hunger for deals and aversion
to risky discovery science with elements
of a traditional big pharma model.
Now many of its rivals are trying to
distance themselves from the company
and its practices. “They’ve become the
End of the buying spree?
Valeant acquisitions, deal value ($bn)
2008 2009
* Showing 62 of 87 deals with disclosed value, total disclosed deal value = $38bn
Source: Deutsche Bank
FT BIG READ. PHARMACEUTICALS
By David Crow
A harsh dose of reality
whipping boy for the entire industry,”
says David Pyott, the former chief exec-
utive of Allergan, who helped seed
doubts about Valeant while fending off
its hostile takeover attempt last year.
“They’ve brought the whole sector into
disrepute and investors are telling other
companies, ‘don’t go down that road, or
it could be the same for you’.”
The starting point for the downfall of
Valeant can be traced to an intervention
by Hillary Clinton, the frontrunner for
the Democratic presidential nomina-
tion, in September. Scandalised by the
actions of Turing Pharmaceuticals,
which had raised the price of a drug for
Aids sufferers from $13.50 to $750 a pill,
‘Specialty pharmacy’
High-volume distribution
model faces scrutiny
In the US, most traditional pharmacies
will not dispense a drug unless they
can be sure that a patient’s insurance
company will reimburse them.
Philidor was different. It was a
“specialty pharmacy” that would
dispense Valeant’s products even if it
could not be guaranteed repayment,
often going as far as to waive or
reduce the “copay” — the amount that
patients would have to pay out of their
own pocket. Specialty pharmacies like
Philidor rely on higher sales volumes,
which are in theory able to offset the
impact of some insurers refusing to
authorise reimbursements.
The strategy helps to explain
Valeant’s predilection for sharp
price rises for its products; when
more insurers refused to stump up, it
Jun 2010 Biovail
$2.4bn merges with Valeant
2010
★ FINANCIAL TIMES
she pledged to crack down on “price
gouging”. Investors started to offload
shares in Valeant, seen as the most egre-
gious offender among big drugmakers
thanks to its practice of buying older
medicines and sharply raising the price.
In February, it acquired the rights to two
life-saving heart drugs and raised the
prices overnight by 525 per cent and 212
per cent.
Complex network
Perhaps the most serious allegation
against Valeant concerned its tangled
connection to a collection of pharmacies
that were instructed to boost sales of
some of its best-selling medicines.
could still count on others to pick up
the burden.
The company has raised the sticker
price of Jublia, a toenail fungus cream,
by 20 per cent since the start of the
year, but has realised a net price
increase of just 2 per cent. That
differential is in part explained by the
large numbers of insurers that refused
to pay Philidor. Jublia generated
almost half its sales through Philidor
before Valeant started severing its
ties to the group.
Just weeks before the short-seller
allegations, Mr Pearson used a
meeting with investors to talk up the
benefits of specialty pharmacies,
according to two people in attendance,
although he did not detail the
company’s ties to Philidor.
He described the model — which
gets the company’s medicines into
the hands of patients without hassle
for them or their doctors — as “FedEx
for drugs”.
Sep 2012 Acquires
Medicis Pharmaceutical
2011
In December last year, Valeant spent
$100m on an option to acquire Philidor,
a “specialty pharmacy”, which in turn
controlled a vast network of tiny
regional drug dispensaries. Valeant
started consolidating the results of the
network into its own financial reports,
but did not disclose the arrangement to
investors until short-sellers started ask-
ing questions this autumn.
Several of these short-sellers have
netted themselves a significant return
on their bets against the company, and
Valeant has asked regulators to investi-
gate their actions. The most influential
have been Andrew Left, who runs Citron
Research, an outfit known for targeting
Chinese companies, and John Hempton,
the Australian short seller who runs
Bronte Capital, a hedge fund.
Mr Left wrote a report alleging that
Philidor was at the centre of a massive
accounting fraud that had boosted
Valeant’s sales, and asked whether the
company was “Enron part deux” — a
reference to the energy company that
went bankrupt in 2001.
Despite dropping its relationship with
Philidor, Valeant dismissed the claims
as “completely untrue”, a claim backed
up by a subsequent spike in sales of its
medicines at other pharmacies.
There are, however, many questions
that remain unanswered.
Among them is to what extent Phi-
lidor used aggressive techniques to cir-
cumvent controls on the price of medi-
cines. It is not unusual for drugmakers
to engage in cat-and-mouse games with
health insurers and employers, but
some of these “payers” allege that Phi-
lidor illegally tampered with prescrip-
tions to ensure Valeant was reimbursed.
Valeant refuses to answer questions
about Philidor, saying it wants to wait
for the results of an investigation being
carried out on behalf of its board. The
company is also the subject of several
investigations by US authorities, includ-
ing the Justice Department and the Fed-
eral Trade Commission. It says it
intends to co-operate.
Valeant has been called a “hedge fund
hotel” for the large number of hedge
funds on its shareholder roster, but disa-
greements among its investors have
made a quick comeback all the more dif-
ficult. Mr Ubben in particular has a
problem with Mr Ackman — “Jeff can’t
stand Bill,” says one associate.
Mr Ackman has pushed the company
to adopt a more aggressive public rela-
tions strategy, even going so far as to
$2.6bn
$8.5bn
2012
7
Hard-charging Valeant’s blend of huge
price rises and novel sales tactics lost
it friends in the life sciences industry
Political headwind Hillary Clinton’s
focus on ‘price gouging’ by drugmakers
started a sell-off of Valeant’s shares
‘Hedge fund hotel’ Many big players
have stakes but it has exposed Valeant
to long-held rivalries in the sector
hold his own four-hour press confer-
ence to defend the company after Mr
Pearson and his executives refused.
But Mr Ubben and some other inves-
tors fear that Mr Ackman’s media-
friendly style attracts too much public-
ity at a time when that is the last thing
the company needs. They also believe
many of the short sellers who have
attacked Valeant may be trying to bring
down Mr Ackman a peg or two, dragging
the company into hedge fund rivalries.
Mr Hempton, for instance, is a big
backer of Herbalife, the nutrition sup-
plement group that Mr Ackman has
alleged is a pyramid scheme.
One episode that enraged many of
Valeant’s executives and investors was
Mr Ackman’s decision to give an inter-
‘They’re in big trouble
once they stop buying
stuff and [have to] run
the business just like
anyone else’
view to the Wall Street Journal, in which
he appeared to prevaricate over
whether he thought Mr Pearson was the
right person to lead the company. The
article was published on the same day
that Goldman dumped Mr Pearson’s
pledged shares.
Mr Ackman clarified the remarks
publicly and privately apologised for the
Investors fall out of love interview. “Clearly, this was not my best
with Mikefall
Investors Pearson’s model
out of love work,” he wrote in an email to Mr Pear-
with Mike Pearson’s model 250
Valeant share price ($) son and other executives, according to
Valeant share price ($) two people who have seen a copy.
250
200 Holed up in New Jersey
200 In the good years, Mr Pearson often
150 seemed to be running Valeant from a
150 private jet, criss-crossing North Amer-
100 ica to negotiate the bold takeovers that
fuelled its growth. But as the group’s
100 problems have mounted, he has become
50 a regular presence at the company’s
Jan 2014 15 Nov50 New Jersey headquarters, rising early to
take his chauffeur-driven car from his
Valeant2014
Jan continues 15aggressive
Nov family home in the upscale village of
pricing strategy
Valeant continues aggressive New Vernon about 25 minutes away.
Drug price increases*
pricing strategy
(annual average % change)
There, he spends much of the day
Drug price increases* holed up in a windowless conference
Valeant
(annual average % change)
Specialty pharma 60
room with his executives and lawyers,
putting in 14-hour stretches to plot the
Valeant
industry average
Specialty pharma 60 company’s recovery and ordering in
industry average 40 from the company’s canteen.
Since Valeant ditched Philidor, it has
40 been filling some prescriptions for free
20 to stop a haemorrhaging of customers
and physicians. And to prevent an exo-
20
dus of middle-ranking executives, it is
0 offering key employees six-figure reten-
2012 13 14 15 0 tion packages in exchange for commit-
(year to date) ting to staying for another two years.
2012 13 14 15
* Change in list price for branded drugs This has prompted Valeant to tear up
Sources: Thomson Reuters Datastream;to date)
(year
its financial guidance for next year, and
* Deutsche
Change inBank
list price for branded drugs
Sources: Thomson Reuters Datastream; analysts have started to lower their
Deutsche Bank price targets — although the majority
still retain a “buy” rating on the stock.
Meanwhile, Valeant executives are
Above: Mike Pearson is trying to trying to reassure the market that it can
reassure the market that Valeant can handle its $31bn of net debt, pledging to
reduce its debt levels; far left, hit the pause button on deal making,
Pershing Square’s Bill Ackman: and and use its cash flow to repay loans. The
left, activist short-seller Andrew Left first big test will come in 2018, when
New York Times /Redux /Eyevine; Lucas Jackson/Reuters;
Brendan McDermid/Reuters; Patrick T Fallon/Bloomberg
roughly $4.4bn is due.
A more pressing engagement is
expected to take place later this month,
when Mr Pearson is likely to be called to
testify at a Senate committee hearing on
drug prices. Some of his biggest support-
ers fear that he will struggle to put in a
good performance: “He hates public
speaking — it’s possibly one of his worst
skills,” says an ally.
Even if Mr Pearson emerges
unscathed, some worry that years of
inquiries by US authorities will still
hamper the company.
“Eventually they’re going to have to
start selling assets off to meet their debt
commitments,” says one analyst, who
asked not to be named. “They’ve gone
from this amazing growth story to a
limp-along company.”
May 2013 Acquires Feb 2015 Acquires
Bausch & Lomb Salix Pharmaceuticals $14.5bn
2013 2014 2015
8 ★
WEDNESDAY 2 DECEMBER 2015
China’s woes disguise
a tale of two economies
Weak manufacturing is no need to panic because services are growing
China has achieved its self-appointed
target of growing at an annualised rate
of almost 7 per cent in the last quarter,
but the numbers do not tell the whole
story. The country’s economic woes are
far from over.
China’s official index of manufactur-
ing activity has plunged again, hitting
its lowest level since 2012. Some inves-
tors expect Beijing to respond with a
further stimulus, and the prospect has
sent a wave of optimism through Asian
stock markets. That may be the wrong
prescription for the economy.
There is no doubt that Chinese man-
ufacturing is facing fierce headwinds.
Producers already struggling with
excess capacity are now contending
with weakening demand. Falling com-
modity prices are intensifying defla-
tionary pressures.
For the past 35 years, manufacturing
has been the driver of China’s spectacu-
lar expansion and an engine propelling
the rise of a nascent middle class.
Investment accounts for half of aggre-
gate demand so its slowdown makes it
doubly difficult for the government to
achieve even the more modest target of
7 per cent growth.
Beijing is clearly tempted to step in
with another full-blown stimulus. The
official lending rate has already been
cut six times this year, and further
monetary easing is surely on the cards.
That would enable manufacturers and
the property sector to continue the
investment splurge.
There is also talk of fresh fiscal
expansion. Local authorities have
adopted aggressive infrastructure
spending targets and the government is
fast-tracking applications for new
buildings and factories.
A fiscal boost has obvious attrac-
tions. Whether it would be the right
step is less clear. Lost amid the turmoil
in manufacturing is the story of the
quiet rise of the services sector which
The slow death of the
British Labour party
The Commons vote on Syria will split the opposition more than ever
Three months after Jeremy Corbyn was
elected Labour leader, Britain’s centre-
left party is at war with itself. Many of
its MPs at Westminster have become
increasingly disaffected with the hard-
left direction that Mr Corbyn is taking.
Stark rifts have also emerged over
national security. That disaffection will
be fully exposed today when the House
of Commons votes on extending UK
military action against Isis from Iraq
into Syria.
Mr Corbyn, a life-long pacifist, will
oppose the government’s plans, argu-
ing the UK’s focus should be on peace-
ful resolution of the Syria conflict. At
least 50 Labour MPs — including many
in the shadow cabinet — will back
David Cameron’s call, arguing the UK
must act against the Islamist militant
group. In consequence, Mr Corbyn has
no choice but to allow his MPs a free
vote, a move that will give the prime
minister the majority he needs.
Labour’s leader is perfectly entitled
to make his pacifist case on Britain’s
bombing campaign. The government is
arguing that military action should be
extended, not least because the UK
must demonstrate support for France
after the Paris attacks. But the argu-
ment is fiercely contested and many
observers fear that a lack of supporting
ground troops in Syria makes it impos-
sible to exploit bombing from the air.
The difficulty for Mr Corbyn is that
while any leader can expect to face
occasional dissent from backbench
MPs, it is far more serious to be
opposed by so many shadow ministers.
On a question of military action, where
the public can expect a major party to
take a united position, Labour’s resort
to a free vote looks incoherent.
The disarray will be compounded
today when Mr Corbyn makes the case
against extending air strikes at the start
of the Commons debate, while Hilary
Benn, his shadow foreign secretary, will
has helped to offset declines elsewhere
in the economy. Last month, services
purchasing managers' index rose to
53.6. There are other signs domestic
demand is picking up. Property sales
have shown a recovery and the thou-
sands of apartments built during the
real estate boom are beginning to fill.
The government has long declared it
wants to rebalance China’s economy
from exports and investment to con-
sumption. That in turn means a shift
from manufacturing to services. Such a
historic change is virtually impossible
without a relative slowdown in manu-
facturing. Beijing should not reach for
the medicine cabinet every time the
industrial sector catches a cold.
True, shifts on the scale that China is
attempting never happen entirely
smoothly. Party officials are right to
worry about a slowdown, and its
impact on employment. China’s size
and global importance mean that its
stability is vital not only to its leaders —
but to the wider world.
Beijing must keep sight of the long-
term objective. Rushing to prop up
manufacturing and real estate at every
sign of market panic would be a mis-
take. Fiscal policy, if aimed at encour-
aging domestic consumption, is not a
bad idea. But instead of vowing to build
another road to nowhere, investment
should be redirected at cleaner energy
where China has still a long way to go.
Similarly, looser monetary policy
will probably be necessary to balance
the liquidity squeeze on the Chinese
market as money flows abroad. But it
would be wrong to hope that such a pol-
icy will fix what is primarily a struc-
tural problem.
The latest figures on manufacturing
activity are gloomy. Yet what looks like
a classical cyclical downturn may well
be the long-awaited rebalancing of the
Chinese economy. The transition is
painful but worth every step.
make the case in favour at the end of it.
If Labour’s travails were confined
simply to the issue of Syria, they could
be treated in isolation. Instead, they are
the latest in a series of mis-steps by Mr
Corbyn that have rightly infuriated his
top team.
The Labour leader’s response to the
killing by a drone of Mohammed
Emwazi, a British Isis terrorist, was to
say he should have been arrested and
tried. He dealt with the debate on
renewing the Trident nuclear deterrent
by appointing Ken Livingstone, a
former London mayor and known
opponent, to co-chair a party review —
without telling his shadow defence
minister, who is pro-Trident.
The rift between Mr Corbyn and
Labour MPs is the result of the miscon-
ceived redesign of the party’s election
rules by Ed Miliband, its former leader.
The new system allowed Mr Corbyn to
be nominated as a leadership candi-
date by just one-tenth of Labour MPs.
He was then elected in a party-wide
ballot in which any member of the pub-
lic could vote by paying just £3. As a
result, the party fell victim to entryism
by the far left, which has been seeking
to capture Labour for decades.
Labour is now stuck. Mr Corbyn
argues that his pacifist stance reflects
the sentiment of the party’s grass-roots
supporters. Labour’s moderate MPs
rightly insist that their prime role is not
to parrot the wishes of party activists
but to serve all their constituents and
act in the national interest. Now some
of them face deselection in a campaign
by Mr Corbyn’s allies.
Labour is in the throes of a crisis
from which there is no easy escape. Mr
Corbyn seems determined to push his
party towards the far left whatever the
consequences for its electability. The
longer he stays in his post, the more
likely it is that he will destroy Labour as
a mainstream political party.
FINANCIAL TIMES
Polemic against Paris summit is based on bogus arguments
Sir, Bjørn Lomborg cites some highly
misleading figures in his polemic
against the Paris climate change
summit (“Wasting trillions on carbon
curbs is immoral”, December 1). His
claim that the pledges for emissions
cuts submitted by more than 180
countries ahead of the summit will
collectively only reduce global
warming by 0.05 centigrade degrees by
2100 is based on a paper he has
produced for the journal Global Policy.
But my accompanying paper in the
journal points out that his calculation
suffers from a fundamental flaw that
QE can help developing
countries to tackle their
climate change challenges
Sir, It is understandable that Narendra
Modi, the prime minister of India,
should point out that just because low
carbon technology exists to tackle
climate change it doesn’t mean it is
affordable and accessible (“Do not let
the lifestyles of the rich world deny the
dreams of the rest”, November 30).
Indeed it has been estimated that to
allow developing countries to tackle
and cope with climate change could
require around €3.5tn. However, to put
this into perspective, when the global
banking system was threatened the
world’s rich economies responded with
programmes to print €7tn of
quantitative easing: ie, twice that
thought to be required to deal with
climate change in poor countries.
The European Central Bank is still
e-printing €60bn a month under its QE
programme and is committed to doing
so until September 2016. In our
“Climate QE” paper we propose that to
address the challenge of the kind posed
by India’s prime minister the ECB
should allocate, say, €10bn a month
from this QE programme. This could
be used to buy climate change bonds
from the European Investment Bank,
which could then direct these funds to
climate change programmes in
developing countries. Such an
approach could galvanise and put
pressure on other rich countries to
introduce their own climate QE
initiatives.
Richard Murphy
Professor, City University, UK
Colin Hines
Convenor, Green New Deal Group
We need a new currency
to curb our energy use
Sir, We have become profligate in our
use of energy. One possible solution
would be the worldwide adoption of
energy as the basis of currency: the
Erg. This would mean that however
much energy it took to manufacture an
article, or grow, mill and bake a loaf of
bread, that would be the cost of that
item. This would instantly show the
true cost to the planet of our excessive
energy consumption and make us all
aware of just how much energy we use.
Why do we persist in making more
and more “labour saving” gadgets and
then use a powered treadmill (for
example) to keep us fit? It just defies
logic.
VJ Paine
Lift Test Engineer,
Lift Specialists Ltd,
Newhaven, E Sussex, UK
The tricolore’s
comeback
cannot bind
society’s cracks
Paris
Notebook
by Anne-Sylvaine
Chassany
Letters
renders it useless: it assumes that after
2030 countries abandon all efforts to
tackle climate change and over the
following 70 years emit high levels of
emissions which reverse the impacts of
the pledges.
Dr Lomborg also asserts that the
costs of cutting emissions will be up to
$2tn a year from 2030. But this is based
on a comparison with a hypothetical
counterfactual for growth in global
gross domestic product which assumes
climate change is not happening and so
does not have any economic impacts.
Even using this bizarre comparison,
‘Sometimes I feel like a 95-year-old’
Credit Corbyn with
taking a rare step
Sir, You report that Jeremy Corbyn
claimed 75 per cent of Labour party
members were opposed to the UK
bombing Syria based on the replies of
“only” 64,000 respondents to an email
survey (“Corbyn unwilling to stake
authority over war”, December 1). How
many replies does the poor man need
before he can at least get some
acknowledgment in the media for
taking the rare step, for a party leader,
of actually asking members what they
think on an important issue?
Giles Dixon
Richmond-upon-Thames, Surrey, UK
The Independent never
lacked for resources
Sir, Vincent Boland, in his review of
Matt Cooper’s biography of Sir
Anthony O’Reilly (November 30),
states that after he bought the London
Independent he “spent barely a cent on
it”. If that were true he would still be a
rich man today — as might the rest of
us. In fact Independent News & Media
probably spent £300m on it in the 17
years of its ownership, nearly £30m in
the year it was launched as a compact
newspaper (followed by half the
quality papers of the world, including
The Times).
That is small stuff in comparison to
the £1m a week The Times and
Guardian were losing at the time. But it
adds up to a lot of cents and The
Independent, although scarcely
profligate, never lacked for resources
where and when it needed them.
Under O’Reilly’s proprietorship The
Independent won just about every
award going, attracted and retained
some of the best writers and journalists
in the field and, although its politics
Patriotism is a feeling many French
people have grown wary of. There is
no equivalent of the US pledge of
allegiance. It is unusual to own a
tricoloured flag — except perhaps if
you are a football fan. Suspicion that
patriotic values fuelled nationalism in
Europe in the 1930s runs high. But
after the Islamist terror attacks that
killed 130 people in Paris and Saint-
Denis, the tricolore made a comeback.
Because the assaults on bars and
restaurants in popular areas of the
French capital were so indiscriminate,
it was used around the world to
express solidarity with France. Bleu,
blanc, rouge filters flooded Facebook
and Twitter. At home, sales of the flag
soared ahead of the homage to the
victims, which took place last Friday.
That day, the colours, which became
the emblems of France during the
revolution, dotted Parisian buildings.
Despite the grieving, residents had
some fun with it: in place of a flag,
they hung clothes, including bras. It
was not just the tricolore; I had never
heard so many renderings of “La
Marseillaise” in such a short period.
These are more consensual symbols
than Charlie Hebdo, the satirical
magazine that was targeted by
Islamist terrorists in January. “Je Suis
Charlie” was controversial in parts of
French society. Some within the
Muslim population found it hard to
associate with a publication that
mocked their Prophet. Some pupils
refused to hold a minute’s silence in
honour of the dead cartoonists.
Integration issues were laid bare and a
the Intergovernmental Panel on
Climate Change points out that the
investments required to reduce
emissions in line with the target of
limiting global warming to no more
than 2C are equivalent to an average
reduction of just 0.06 percentage
points in the rate of growth.
Finally, he complains about the
subsidies that might be spent on the
deployment of renewable technologies
over the next few decades, but fails to
mention how much smaller the sums
are than the $5tn in financial support
that fossil fuels received this year alone,
were never those of its owner, it always
had his unconditional support.
Cooper criticises him, as many do,
for becoming too emotionally involved
in it, but there are worse failings in a
proprietor. Without him, there would
probably be no Independent today.
Ivan Fallon
Cape Town, South Africa
Former CEO of Independent News &
Media UK
Sometimes it’s a struggle
to find the English word
Sir, I read with interest Michael
Skapinker’s article “Emoji, Brexit, ad
blocker and my notable words of 2015”
(November 26). Analogous to the verb
“to database” Spanish has the useful
verb “despachar con”, meaning to have
small informal meetings with
colleagues in one’s office, for which I
am struggling to find an English
equivalent.
Neil James
Toledo, Spain
Sir, With regard to Michael Skapinker’s
column (November 26) on new verbs
of 2015: to empty chair?
Krystyna Livingstone
Southampton, UK
Market-based pricing
keeps mortgage rates low
Sir, John Kay argues, in “For the
ordinary saver, liquidity is of little
value” (November 18), that high
liquidity is in the interest of market
practitioners rather than their
customers. In Denmark it is certainly
not true. In Denmark, interest rates on
the majority of all lending to Danish
households are set by supply and
demand in the covered bond markets
and are passed through to investors in
a 1:1 relation. Albeit not common in the
UK, such market-based pricing of
mortgages historically have been
keeping Danish mortgage rates at
remarkably low levels. The interest
rates are directly dependent on the
high liquidity in the Danish covered
bond market. If liquidity is low, the
liquidity premium required is passed
directly through to customers as an
extra expense.
The Danish covered bond pass-
through model has only survived
during the past crisis due to its high
liquidity and security, which in the end
results in low interest rates for ordinary
households. It is important to have a
well capitalised banking system but
regulators should take possible negative
impacts on liquidity into account.
Ane Arnth Jensen
Managing Director,
Association of Danish Mortgage Banks
debate on freedom of speech over
religion was triggered that touched a
nerve in secular France.
Yet the patriotic fervour in the wake
of last month’s attacks felt unnatural.
This was highlighted when the
government issued instructions on the
eve of the ceremony for the victims:
we were to clip a French flag on a
window, or take a selfie with the three
colours and post it on social networks
along with the #fiersdelafrance
(“proud of France”) hashtag.
I belong to a generation that did not
grow up “practising” patriotism —
partly because our parents lived
through the May 1968 liberal
revolution and did not doubt France’s
place in the world. “La Marseillaise”
was taught in history books, period.
For many, especially on the left, there
is a fine line between patriotism and
the kind of nationalism that led to the
collaborationist Vichy regime. Those
who held on to the tricolore seemed to
be far-right National Front militants
and anti-gay marriage protesters.
This is going to change. Now, in the
wake of the Charlie attacks, teachers
are to celebrate rites of the French
Republic and emblems of secularity
each year on December 9.
Last weekend, at the 40th birthday
party of a teacher friend in the 19th
arrondissement, a relatively poor and
ethnically mixed area of northern
Paris, guests were pondering the
recent patriotic push. “This is bizarre,
my parents were true soixante-
huitards, I was not brought up this
way,” said one primary school teacher,
Wednesday 2 December 2015
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
because their prices do not reflect the
costs they cause through climate
change, air pollution and other damage.
Countries should increase their
investment in research and
development on green energy, as Dr
Lomborg suggests, but they should not
be fooled by his bogus arguments
against other measures to reduce
emissions.
Bob Ward
Policy and Communications Director,
Grantham Research Institute on Climate
Change and the Environment,
London School of Economics, UK
However did the land
of the free become
the home of the timid?
Sir, Bravo to Jurek Martin for an
excellent piece “Refugees, the US and
the propagation of fear” (FT.com,
November 27). The quavering timidity
of Americans in the face of threats that
can best be described as remote does
not befit the country that tamed a
hostile continent, sent several million
men to fight in Europe in 1918, fought a
two-front war over half the globe in the
1940s, and stared down the Soviet
Union over a span of 45 years.
Any rational observer can deduce
that ordinary (ie non-terrorist)
homicides in the US kill four times as
many people every year as died in the
2001 World Trade Center attacks, and
traffic accidents kill up to seven times
as many, year in and year out.
Why exactly are Americans so afraid
of foreigners? A person has a much
higher probability of being shot dead
on a street in the nation’s capital by an
American than being the victim of a
terrorist attack by an immigrant.
There was a time when America’s
leaders took the lead in calming the
fears of the populace, best evidenced
by Franklin D Roosevelt’s 1933 dictum
that “the only thing we have to fear is
fear itself”. Roosevelt went on to say
that “a leadership of frankness and
vigour has met with . . . understanding
and support of the people themselves”.
The current crop of presidential
aspirants is far from following that bold
example, preferring to pander to
Americans’ “nameless, unreasoning
unjustified terror” (again, FDR’s
words) rather than appealing to the
nobility that this writer continues to
believe is latent in the vast majority of
American breasts.
John Sabalis
Auckland, New Zealand
Norwegians’ rationale did
not lack economic element
Sir, Rod Price (Letters, November 26)
praises the Norwegians for twice
rejecting full EU membership based on
their recognition that “there is more to
life than GDP”. I suspect that their true
rationale probably does have a strong
economic element: the first rejection
coming as Norway’s North Sea oil
bonanza was about to come on-stream;
the second as the coffers brimmed.
With the sovereign wealth fund now
standing at around £100,000 per head
of population, Norway can perhaps
afford to take a somewhat more
independent tack than the rest of us.
Mark Simmons
Kew, Surrey, UK
who felt ill-equipped to answer her
pupils’ questions.
One of her colleagues was perplexed
by the government’s instructions to
replace the bloody lyrics of the
national anthem with lines about
“fraternité’’. “It feels wrong to change
the lyrics,” she said, unsure about
what to do, while reckoning that her
kindergarten pupils were too young to
grasp the historical context in which
“La Marseillaise” was created.
Delphine, a secondary school
teacher from Toulouse, was
exasperated: “They may think that
while we sing ‘La Marseillaise’ we’ll
forget the real problems.”
The conversation veered to the fate
of the children of immigrant origins.
“There is no égalité,” said Delphine,
recounting how, when a friend called
Mohammed changed his name to
Martin, he suddenly found it easier to
get job interviews. Many such children
get ejected from the education system
too early, she said. Making sure that
happens to fewer would require a very
ambitious plan and big means.
It may be politically astute of
socialist president François Hollande
to try to reclaim the emblems of the
Republic from the far right. But
Delphine has a point: in the
meantime, the societal cracks that the
Charlie Hebdo attacks revealed — over
the place of Islam in France, rising
inequalities, discrimination facing
citizens of immigrant origins — are
growing wider.
anne-sylvaine.chassany@ft.com
Wednesday 2 December 2015
Let consumers pick the winner in the battle over London cabs
OPINION
Alex
Chisholm
W
ho will shout louder —
those who oppose
change or those who
gain from it? In Septem-
ber Transport for Lon-
don began consultations on new regula-
tions for minicabs in the city. If they
become law, these rules will prevent
popular taxi apps such as Uber from
operating in Britain’s largest city in their
current form.
As head of the government depart-
ment responsible for promoting compe-
tition, my interest is in making markets
work well for consumers, businesses
and the economy. In our response to
TfL, which we are publishing today, we
Cheap oil puts
humanity on a
slippery slope
ECONOMICS
Martin
Wolf
W
hy have oil prices fallen?
Is this a temporary phe-
nomenon or does it
reflect a structural shift
in global oil markets? If
it is structural, it will have significant
implications for the world economy,
geopolitics and our ability to manage
climate change.
With US consumer prices as deflator,
real prices fell by more than half
between June 2014 and October 2015. In
the latter month, real oil prices were 17
per cent lower than their average since
1970, though they were well above levels
in the early 1970s and between 1986 and
the early 2000s. (See charts.)
A speech by Spencer Dale, chief econ-
omist of BP (and former chief econo-
mist of the Bank of England) sheds light
on what is driving oil prices. He argues
that people tend to believe that oil is an
exhaustible resource whose price is
likely to rise over time, that demand and
supply curves for oil are steep (techni-
cally, “inelastic”), that oil flows predom-
inantly to western countries and that
Opec is willing to stabilise the market.
Much of this conventional wisdom
about oil is, he argues, false.
A part of what is shaking these
assumptions is the US shale revolution.
From virtually nothing in 2010, US shale
oil production has risen to around 4.5m
barrels a day. Most shale oil is, suggests
Mr Dale, profitable at between $50 and
$60 a barrel. Moreover, the productivity
of shale oil production (measured as ini-
tial production per rig) rose at over 30
per cent a year between 2007 and 2014.
OPINION
Dennis
Ross
G
alvanised by the attacks on
Paris, politicians across the
west are focused on how to
tackle Isis with bombs and
boots on the ground.
With the perception of victory central
to the militants’ claim to a divine man-
date, it is vital to impose territorial
losses. But that is not sufficient — we
must discredit the group itself. This is
something America and Europe cannot
do: only Sunni Muslims can do it. Ena-
bling Isis to present the western
response as a war on Sunnis — alienating
them altogether — would hand the
jihadis a further propaganda victory.
explain our concern that many of the
agency’s proposals would artificially
restrict competition, curbing develop-
ments that stand to benefit the paying
passenger.
New taxi business models have the
potential to increase choice and deliver
what passengers want: shorter waiting
times, lower prices and increased
responsiveness.
But the proposed rules would undo
much of what is novel about these busi-
nesses.
The locations of nearby cars could no
longer be displayed on smartphones. A
fixed fare would have to be quoted in
advance of all journeys. Passengers
would have to wait five minutes to be
picked up, even on occasions when
there was a car just around the corner.
These restrictions risk limiting the very
innovations that could make progress
possible.
Then there is the proposal to impose
restrictions on ride-sharing in licensed
Above all, the rapid growth in shale oil
production was the decisive factor in the
collapse in the price of crude last year:
US oil production on its own increased
by almost twice the expansion in
demand. It is simply the supply, stupid.
What might this imply?
One implication is that the short-term
elasticity of supply of oil is higher than it
used to be. A relatively high proportion
of the costs of shale oil production is var-
iable because the investment is quick
and yields a quick return. As a result,
supply is more responsive to price than
it is for conventional oil, which has high
fixed costs and relatively low variable
costs. This relatively high elasticity of
supply means the market should stabi-
lise prices more effectively than in the
past. But shale oil production is also
more dependent on the availability of
credit than is conventional oil. This adds
a direct financial channel to oil supply.
Another implication is a huge shift in
the direction of trade. In particular,
China and India are likely to become
vastly more important net importers of
oil, while US net imports shrink. Quite
possibly, 60 per cent of the global
increase in oil demand will come from
the two Asian giants over the next 20
years. By 2035, China is likely to import
three-quarters of its oil and India almost
90 per cent. Of course, this assumes that
the transport system will remain
dependent on oil over this long period. If
it does, it demands no great mental leap
to assume that US interest in stabilising
the Middle East will shrink as that of
China and India rises. The geopolitical
implications might be profound.
A further implication concerns the
challenge for Opec in stabilising prices.
In its World Energy Outlook 2015, the
International Energy Agency forecasts a
price of $80 a barrel in 2020, as rising
demand absorbs what it sees as a tempo-
rary excess supply. A lower oil price
forecast is also considered, with prices
Success in Syria depends on influence in Moscow
Opting to treat Syrian President
Bashar al-Assad as an ally would ensure
we lose whatever Sunni support we
have. Teaming up with a leader backed
by Iran, the region’s Shia powerhouse —
and who has killed thousands of Sunni
opponents — would imply that we are
part of an onslaught against Sunnis.
The effect will be worse if we intensify
strikes on Isis even as the Russians tar-
get the non-Isis opposition in Syria. Not
only will Turkey, Saudi Arabia, Jordan,
the United Arab Emirates and Sunni
tribes distance themselves; Isis will
present itself as the only group fighting
for Sunnis. We must prevent this.
We must also influence Moscow’s
approach to Syria. President Vladimir
Putin needs to join the fight against Isis
in earnest. He also needs to understand
that continuing to protect the Assad
regime as part of the Vienna diplomatic
process convened by Russia and Amer-
ica, aimed at creating a post-Assad tran-
★ FINANCIAL TIMES
Comment
cars. This practice, common in many
other cities, has not been widely
adopted in London — although there are
imminent plans to expand it here.
If many consumers decide to share
rides with strangers in return for lower
fares, the market for point-to-point
transport could be enlarged, while the
New technologies can
overtake regulation by
empowering customers
with information
traffic congestion generated by each
passenger’s journey could be cut. But
the proposed restrictions would deny
consumers the opportunity to make
that choice.
The guiding principle of a competitive
market is that the consumer is in the
driving seat. The job of a competition
On the slide
Real oil and natural gas prices (deflated
by US CPI, rebased at Jan 2000=100)
Natural gas
Oil
2000 05 10 15
Sources: Thomson Reuters Datastream; BP
staying close to $50 a barrel this decade.
Two assumptions underlie the latter
forecast: resilient US supply and a deci-
sion by Opec producers, notably Saudi
Arabia, to defend production shares
(and the oil market itself). But the low-
price strategy would create pain for the
producers as public spending continues
to exceed oil revenues for a long period.
How long might this stand-off last?
A final set of implications is for cli-
mate policy. The emergence of shale oil
underlines what was already fairly clear,
namely, that the global supply capacity
is not only enormous but expanding.
If US imports decline its
interest in a stable Middle
East will shrink — as that
of China and India rises
sition, will yield nothing except an
extension of the war.
Moscow continues to bomb non-Isis
groups even after Mr Putin acknowl-
edged that a bomb blew up a Russian
airliner over the Sinai peninsula in
October and vowed revenge against Isis.
Meanwhile, the Russian aircraft Turkey
Putin needs to join the
fight against Isis in
earnest. Protecting Assad
will only prolong the war
shot down last month was bombing
non-Isis Turkmen along the border. If
we want Mr Putin to focus exclusively
on Isis and adopt an approach that gives
the Vienna process a chance to succeed,
we need to think in terms of leverage
rather than persuasion alone.
authority, therefore, is to consider the
potential benefit to customers from
innovations that enable them to exer-
cise choice — and allow businesses, both
new and established, to decide how best
to meet demand.
Of course there is a role for regulation,
especially where safety is an issue. But
technologies, such as satellite naviga-
tion, cashless payment systems and
user ratings platforms, have the poten-
tial to overtake the role of regulation,
and safeguard consumers by empower-
ing them with information.
Change can be unsettling and unpre-
dictable. We all need to be bold enough
to challenge, if necessary, the argu-
ments of incumbents who stand to lose
from disruptive change. Defenders of
the status quo can often be more vocal
and organised than the advocates of
change.
Consumers, who often benefit from
technological disruption, can struggle to
make their voices heard. But watch
Shale power
US new-well production per rig
(barrels of oil equivalent a day)
500 450
400
300 300
200
150
100
0 0
2007 09 11 13 15
Forget peak oil. As Mr Dale notes: “In
very rough terms, over the past 35 years,
the world has consumed around 1tn
barrels of oil. Over the same period,
proved oil reserves have increased by
more than 1tn barrels.” The problem is
not that the world is running out of oil. It
is that it has far more than it can burn
while having any hope of limiting the
increase in global mean temperatures
over the pre-industrial levels to 2°C.
Burning existing reserves of oil and gas
would exceed the global carbon budget
threefold. Thus, the economics of fossil
fuels and of managing climate change
are in direct opposition. One must give.
Profound technological change might
undermine the economics of fossil fuels.
If not, politicians will have to do so.
This underlines the scale of the chal-
lenge leaders confront at the climate
conference in Paris. But the response to
the fall in oil prices shows how hopeless
While he wants to show that Turkey
will pay a price for the shooting down,
Mr Putin is certain to be aware of the
risks of an escalation in Syria. Now may
be the time to convey discreetly to him
that if Russia does not enforce a cease-
fire on the Syrians and Iranians, the US
will have no choice but to help create a
safe haven. Mr Putin has little interest in
shoring up the Syrian opposition — and
he knows a safe haven on the Turkish-
Syrian border will enable anti-Assad
forces to grow increasingly unified,
meaning the costs of propping up the
regime will rise and his own ability to be
the arbiter of the Syrian future will fall.
But a safe haven would respond to the
European need to stanch the refugee
flow, and to the Turkish, Saudis, Emir-
ate and Qatari interest in stopping the
toll being inflicted on Syrian Sunnis. US
allies could take on appropriate roles:
European air forces helping enforce the
no-fly area; Turkish forces providing
what they do, and their actions speak
loud and clear.
By March this year, 25,000 people in
Liverpool had reportedly downloaded
the Uber app. The fact that the service
had to wait until August to gain the local
authority approval that it needed to
begin operating might lead you to ques-
tion how closely consumers’ prefer-
ences had been listened to.
This is not just about one company,
one technology or one sector of the
economy. New companies in every
market will stand or fall on their
ability to meet consumer demand — and
those that succeed will, in turn, eventu-
ally be challenged by new business
models.
This is how innovation leads to
progress. We do not serve the interests
of the public or the wider economy if we
slam on the brakes.
The writer is chief executive of the Competi-
tion and Markets Authority
Self-sufficiency beckons
Oil trade, net exports
(million barrels a day)
Forecast
India
China
US
1985 95 2005 15 25 35
policymakers have been. According to
the IEA, subsidies to the supply and use
of fossil fuels still amounted to $493bn
in 2014. True, they would have been
$610bn without reforms made since
2009. So progress has been made. But
low oil prices now justify elimination of
subsidies. In rich countries the opportu-
nity of low prices could — and should —
have been used to impose offsetting
taxes on consumption, thereby main-
taining the incentive to economise on
use of fossil fuels, increasing fiscal reve-
nue and allowing a reduction in other
taxes, notably on employment. But this
important opportunity has been almost
entirely missed. One has to ask whether
there is the slightest chance that effec-
tive action, rather than window-dress-
ing, will emerge from Paris. I hope to be
proved wrong, But I am, alas, sceptical.
martin.wolf@ft.com
protection on the ground; Gulf Arab
states funding the infrastructure.
President Barack Obama has resisted
the idea of a safe haven. But if he wants a
ceasefire to produce the “big transition
for Syria” that John Kerry, US secretary
of state, believes it will, Russia must do
what only it can: impose it on Mr Assad
and the Iranians. With Sergei Lavrov,
Russian foreign minister, declaring
Moscow will co-operate on Isis only if we
“respect the sovereignty and the prerog-
atives of the Syrian government”, no one
should take that as a certainty.
Given that our options will narrow in
the absence of a ceasefire, Mr Obama
must find a way to exercise leverage in
Syria — and be willing to threaten, and if
need be to take, a step he has resisted
until now.
The writer, a counsellor to the Washington
Institute and former special assistant to Mr
Obama, is author of ‘Doomed to Succeed’
9
Tax tricks that
are perfectly
legal — but
should not be
BUSINESS
John
Kay
I
an Read, the irascible Scottish-born
chief executive of Pfizer, must often
have left his public relations advis-
ers wringing their hands. But last
week he surpassed himself when he
expressed incomprehension that “the
political class” — you can almost hear
the derision — was not “applauding” his
company’s plan for a reverse takeover
by Allergan, through which Pfizer
would move its headquarters to Ireland.
Allergan (formerly known as Actavis
and before that as Watson) describes
itself as pioneering a new model in the
drug sector. This model appears to be
that of an investment company trading
pharmaceuticals businesses.
Dublin-based Allergan is as authenti-
cally Irish as an empty bar on a Saturday
night; its operational headquarters are
in New Jersey.
The planned merger is a tax inver-
sion, a device that enables a US com-
pany with accumulated profits overseas
to use them more freely without incur-
ring US tax liability. What Mr Read
found hard to understand was that the
“political class” did not share his joy that
the money the US Treasury would not
be receiving as a result of the inversion
would be available for Pfizer’s other
purposes, including, but not confined
to, the merged company’s research and
development.
It is conventional to distinguish legal
tax avoidance from illegal tax evasion.
But the reality is that there is a spec-
trum. The person who avoids the heavy
taxation on cigarettes by giving them up
wins our approval; the gangmaster who
employs illegal workers off the radar
screen of government authorities goes
to prison when detected. But most cases
lie in between. The UK’s HM Revenue &
Customs has issued big payments
claims to people who invested in highly
0
artificial film finance schemes that did
-2
-4
not qualify for the allowances they
-6
-8
-10 There is a spectrum from
-12
-14 legality to illegality.
Avoider or evader? Most
cases lie in between
claimed. Were they avoiders or evaders?
The line between avoidance and evasion
would be clear only if the law were clear,
and it is not. Tax law is complex and the
legality of particular actions can be
firmly established only if there is a deci-
sion by a court on the facts of a particu-
lar case.
The Revenue identifies a “tax gap” by
reference to the tax unpaid when it loses
cases in the courts, a strange definition
that makes “tax avoidance” the differ-
ence between what the law is and what
the department thinks it ought to be.
Yet that definition is not so different
from the plausible one proposed by the
Tax Justice Network, a UK-based cam-
paign group: tax avoidance occurs
when, if that is the law, most reasonable
people would think the law should
be changed if it does not impose tax
liability.
Most tax avoidance is based on an
assertion that profits are earned in juris-
dictions where, in fact, little or no pro-
ductive activity takes place; or from the
anomaly that interest payable on purely
financial transactions is generally
deductible as if it were a trading
expense. These problems have grown,
not just as a result of ever more ingen-
ious tax advisers, such as those revealed
this week at Deutsche Bank, but also as a
result of the globalisation and the capi-
tal light nature of modern corporate
activity. When profits are earned, and
financial transactions completed, in
cyberspace, where is the territorial
jurisdiction to which they are to be
attributed?
Avoidance opportunities are thus
inherent in the structural weaknesses of
income tax and corporation tax them-
selves, and any comprehensive attack
on avoidance could only be part of a
wide-ranging reform of these taxes.
This is something we should not
expect any time soon — and certainly
not on the global basis that would be
required to deal with companies, like
Pfizer, that manufacture and sell glo-
bally; or the internationally mobile indi-
viduals with wealth sufficient to make
the employment of costly tax advisers
worthwhile.
johnkay@johnkay.com
10 ★ FINANCIAL TIMES Wednesday 2 December 2015

BUSINESS LIFE

Our virtual
An apology: in a feature I wrote on this
page on April 1 — timing a sheer
reality future coincidence — I may have given the
impression that virtual reality is
becoming a very big deal.
is bigger than I said that “after decades as a
futurists’ fantasy, consumer virtual
it appears reality may really be with us”, and that
it “could become as big as cinema and
television”.
Eight months on, I have to report
that I may have rather under-
exaggerated the situation. I’ve been
keeping tabs on VR and a few things
have happened.
I was in Los Angeles recently and had
a beer with Roy Taylor, a vice-
VR, I thought, this is going to be very
big”. As a film lover, though, he was
sceptical of my contention, in my
insufficiently sensationalised Financial
Times article, that VR movies, where
the viewer can be in among the action,
are the future.
“Movies are a dating, social thing,”
he said. “VR is an individual
experience. We’re looking at less
obvious VR applications.”
One of these is education. To which
end, Mr Hirsch took me into another
room to watch a two-minute
educational VR video Zypre have made
with the Smithsonian National Air and
Space Museum, along with some of the
‘
say that. It seems the brain is so fooled
that it extrapolates and adds effects it Let’s launch in . . .
thinks should be there. I have to
confess, my American history is so
sketchy I didn’t even know the flight Rotterdam, Netherlands
was on a beach.
The second new VR thing that
I have to
report that
happened was a couple of weeks
ago, at a dinner given in London for 22
big league innovators by Wired, the
I may have British edition of the technology
rather magazine.
To sing for their supper, each diner
under- had to say what they thought would be
exaggerated the big innovation of 2016. Almost all
nominated VR. Nobody as I recall
the mentioned wearable technology, 3D OMA

situation

president of the chipmaker AMD,
which is making a big play in VR.
“VR is happening here on a scale and
with an energy you can’t believe,” he
said. “The universities are pouring
millions of dollars into it. I don’t think
you went far enough in your article.
Seriously, this is going to change
everything.”
Mr Taylor, who is British, introduced
me to James Knight, a fellow Brit and
an LA-based board member of Bafta
who was a key member of the
technology team that made the film
Avatar. He is now working with Zypre,
a VR film company.
Mr Knight told me how VR
Jonathan Margolis conventions that attracted a handful
of people a year ago are now getting
Oninnovation 700 attendees. He took me to Zypre’s
office to meet Jonah Hirsch, the co-
owner and a banker-turned- film
producer.
“I’m still a business guy at heart,” Mr
Hirsch told me, “but as soon as I saw
Start-ups. Kent Collier, Reorg Research
’
Avatar team, using AMD’s technology. printing, drones or robotics. VR was Population 624,000
It depicts the Wright brothers’ 1903 the only game in town. And these really Population of the Netherlands 16.7m
flight at Kitty Hawk, North Carolina. are people who know. Inhabitants of non-Netherlands origin: 47%
The film took six months to make, Here’s another thing that happened.
with computer-generated The other night I found myself in the
photorealistic visuals and every detail emergency room of a Manhattan Rotterdam is a city on the as the ecosystem grows.
overseen by historians. I watched it on hospital. As I waited to be seen, I got up. The founder of the US’s
a prototype of the much-heralded chatting with a fellow patient, an Cambridge Innovation Support for entrepreneurs:
Oculus Rift VR headset, expected out orthodox Jewish man, in the hat and Center, home to thousands As a long established port
early next year. everything. of start-ups, has likened it city, Rotterdam is rich in
It was several times more startling These guys live in almost Amish-like to a Boston of the know-how and support for
than the VR footage I described in isolation from a lot of modern life, but Netherlands because of its start-ups and entrepreneurs.
April. It was more than virtual reality; he asked me, as people do, what the proximity to so many At the heart is the Erasmus
it was pretty much . . . reality. next big technology thing will be. universities. It will be easier Centre for Entrepreneurship,
It’s not enough to say that, standing I said VR. “What’s that?” he asked. I to visit when Eurostar trains which provides incubation
in a stuffy, darkened room in LA, I did my best to describe it. He stroked service the city directly services, networking and
truly felt I was on a beach in North his beard as if he was contemplating a from London next year. competitions for start-up
Carolina in 1903. Talmudic paradox. Famously it is home to both companies, and works with
It was way more vivid than that. I “I don’t know technology but surely the humanist thinker big companies that want to
even thought I felt the sea breeze in my
face, then the backdraught from the
that changes everything?” he said
eventually.
Erasmus and to Europe’s
busiest maritime port. But
connect with start-ups.
Founded in Holland was set
propeller of the brothers’ flying He even tipped his hat to scratch his what is it like for start-ups? up last year precisely to
machine. I shouted out that I could feel head and ponder further. promote Netherlands start-
the wind and the techies surrounding The case for: Rotterdam is a ups and connect them to
me laughed. Apparently, a lot of people Twitter: @TheFutureCritic city that roll its sleeves up each other.
and gets on with business, The city received a boost
residents will tell you. This, this year when Cambridge
they explain, distinguishes Innovation Center chose
the Netherlands’ second- Rotterdam to become its
largest city from the biggest:
“In Amsterdam they talk a
first overseas hub. This will
provide workspace,
lot but here we get things networking and tech start-

Bankruptcy bulletins
done,” says Bob Jansen, a
start-up mentor and founder
of local web product
developer, Firmhouse.
The city’s start-up
ecosystem has strong links
with Erasmus University
Rotterdam, particularly its
School of Management and
Medical Centre. Many
Rotterdam start-ups are
focused on medical and
The clunkiness of US corporate entrepreneurship.
court filings inspired a As well as a thriving
cultural scene, diversity of
thriving news service for national backgrounds and
distressed debt investors, dramatic skyline, the city
has another attraction for
up know-how.
Local heroes: Successes
include online retailer Cool
Blue and Housing
Anywhere, which facilitates
sublets of spare rooms and
dorm space at more than
100 universities worldwide.
Other notable start-ups are
Floorplanner, an online floor
planning software service,
and Symbid, a crowdfunding
business that aims to make
it easier for start-ups and
smaller businesses to find
alternative funding.

says Robin Wigglesworth start-ups. “Rotterdam has a Getting there: A high-speed

much lower cost of living train service links Rotterdam

O
n May 12, many big hedge
funds were on tenter-
hooks. They had snapped
up the defaulted bonds of
Nortel, a bankrupt tele-
coms company, and the Canadian and
US courts were preparing to divvy up
the $7.3bn cash pile left in its husk. But
then the judges shattered their hopes by
ruling the money should be distributed
proportionally only once other claims
such as those from pensioners were set-
tled. The decision sent the bonds sliding
sharply.
It was a brutal day for many big inves-
tors, but a great one for a niche start-up
making a name for itself in the debt
restructuring world. The swiftest and
arguably the best coverage of the pivotal
US-Canadian court case came not from
one of the leading newswires or media
outlets, but a small, pushy company
called Reorg Research that is entirely
devoted to relaying what is happening in
the esoteric world of bankruptcy,
restructuring and “distressed debt”.
“They did a good job on Nortel,” says
Ed Tai, a fund manager at Newfleet
Asset Management.
Reorg was set up in early 2013 by Kent
Collier, a former investment bank and
hedge fund analyst, initially to solve one
of the most frustrating and time-con-
suming challenges in the distressed debt
industry, in which investors snap up the
loans and bonds of companies close to
or already in bankruptcy. It is arduous
work, and means constantly checking
the Public Access to Court Electronic
Records, or Pacer, the government’s
archaic electronic information service,
which allows users to obtain case and
docket information from law courts.
“You want to be ahead of the news,”
Mr Collier lamented on his blog in 2009:
“I check Pacer and various court dockets
so many times it makes me sick . . . If
anyone knows a way to automate this or
wants to start a company that auto-
mates this with me, let me know.”
By 2012, Mr Collier, an energetic man
wearing an open-neck shirt and seem-
ingly in perpetual motion as he walks
round Reorg’s New York office, decided
to go ahead himself.
Getting a court filing quicker or
slower than a competitor can mean the
difference between triumph and igno-
miny, and Reorg’s quick, intuitive inter-
face and alert system grafted on to Pacer
was a revelation to many. “Going
through Pacer was a horrible process, it
would take hours. Reorg automated
that,” Mr Tai says.
But Mr Collier soon realised Reorg
could be much more than just another
tech offering designed to make life eas-
ier for people like him. He had started
his blog on distressed debt in the wake of
the financial crisis, and its dedicated fol-
‘I just love this lowing convinced him he could build a
stuff, I could news and analysis service around
talk about Reorg’s Pacer-simplifying tech core.
bankruptcy and “I just love this stuff, I could talk about
distressed debt bankruptcy and distressed debt all day
all day long’: long,” he says, rocking back and forth in
Kent Collier of his chair. “It’s just such a fascinating
Reorg Research industry with so many interesting peo-
Pascal Perich ple and issues.”
He is not of course alone in thinking
this. The money sloshing around the
distressed debt world means there is a
slew of specialised trade organisations
that follow restructurings and “special
situations”, as well as broader, tradi-
tional news outlets. Law firms also
churn out legal opinions on live cases to
showcase their expertise, while finan-
cial analysts at banks drum up business
by crunching the numbers.
To ensure Reorg had an edge beyond
Biggest breakthrough: “We broke a
In his own huge story on Exide and its bond prices
words dropped precipitously . . . We had more
calls about signing up for our service
that day than all days leading up to that
Tips, tech combined.”
and money
Biggest mistake: “For a company that
relies heavily on technology, I should
have built out our tech team sooner.”
Personal tech: “I am always on my
phone using collaboration tools so I can
stay connected with the team. Whether
it be Slack, Google Docs, JIRA or our
CRM, it is a quasi dashboard for what’s
going on inside the company.”
Funding rule: “You will drive higher
valuations and get better investors
when you have real momentum, even if
that momentum is not producing
revenue.”
the streamlined Pacer system, Mr Col-
lier decided to develop one joined-up,
hybrid quasi-editorial model, where
journalists, lawyers and financial ana-
lysts work side by side.
“I call us an intelligence house, not a
media organisation,” Mr Collier says.
“When we do deep dives they’re more
like research and analysis, but we also
break stories. We put a lot of effort into
getting our analysts, reporters and
lawyers working closely together.”
As a result, Reorg’s news flashes, bul-
letins or longer pieces are unlikely to
enter into the Pulitzer committee’s del-
iberations. The prose does not always
flow smoothly, and adjectives and ad-
verbs are stripped out in favour of
sparse financial and legal jargon. But it
is an undeniably successful model.
The company sold its first subscrip-
tion in April 2013, but now has more
than 250 bought by some of the biggest
hedge funds, private equity companies
and law firms in the US. Each pays
$50,000 to $150,000 a year, depending
on its size, which funds 45 Reorg staff.
Having opened a London office this
year, Reorg is considering setting up a
Washington bureau next year. Mr Col-
lier reckons overall staffing is likely to
reach 70 by the end of 2016. “One of my
biggest concerns is that we hire too
many people too quickly. But we proba-
bly won’t,” he says.
Former Reorg staffers need not apply,
however, as Mr Collier has taken a leaf
from Bloomberg News’s book and
decreed that anyone who leaves cannot
return.
Thanks to the steady streams of sub-
scription money, Reorg does not need to
raise money to fund expansion. Indeed,
Mr Collier regrets doing two financing
rounds in early 2013, just before Reorg
took off. It raised a total of $1.25m from
angel investors through issuing a con-
vertible note and preferred shares.
Thanks to investing his own funds
and Reorg’s rapid growth, the funding
rounds were redundant, says Mr Collier.
“We never used any of that money.
We’re actually trying to buy back stock
now.” So far there have been no takers.
Nonetheless, the core of Reorg is its
tech offering, which is vulnerable to bet-
ter-resourced rivals such as Bloomberg
potentially offering something similar
on top of their other products. Although
some clients like the added news and
analysis provided by Reorg — which
lessens the need to have a big team of
dedicated analysts keeping on top of
every development and situation — the
real attraction is how its system simpli-
fies and saves hour upon hour checking
legal dockets on Pacer. That advantage
is far from unassailable.
Mr Collier is unconcerned, and argues
that bigger companies such as Bloomb-
erg can still be bested by nimbler and
more focused outfits.
Nor is he interested in selling out, des-
pite several approaches: “I’d never start-
ed or run a company before. It’s very,
very exciting,” he says.
The emergence of Reorg could offer
some pointers to other news organisa-
tions struggling to find a consistently
profitable business model. Its willing-
ness to experiment with traditional
journalism and tight focus on one niche
could in theory be replicated elsewhere
in an industry where many face an exis-
tential scramble to find a future.
For now Reorg is focused on its raison
d’être, but Mr Collier is interested in
exporting the hybrid model to other
areas. “We combine powerful editorial
with cool technology,” he says, and that
can be copied in other sectors and other
regions.
than Amsterdam,” says
Maarten van den Heuvel of
the networking business
Founded in Holland.
The case against: For
fundraising, start-ups will
probably need to look to
Amsterdam or further afield.
There are no accelerator
programmes — for that, look
to Rockstart and Startup
Bootcamp in Amsterdam.
However, this may change
Innovation to watch
Breastfeeding by mail
HANNAH KUCHLER
Ironed shirts, perfected
PowerPoints . . . and a box
packed with breast milk?
Milk Stork aims to help
mothers on business trips to
send their breast milk home
to their still nursing babies.
The Silicon Valley start-up
promises to ship anywhere
in the continental US. Mums
pump their breast milk, load
it into a special refrigerated
case and drop it at the
hotel’s front desk for it to be
whizzed back to whoever is
taking care of their baby.
In the US, where many
mothers return to work
within weeks of childbirth,
Milk Stork hopes to provide
a way for their babies to
have their breast milk even
when the job requires travel.
On its website, Milk Stork
writes that mothers will have
neither to pump lots of milk
ahead of a trip or discard
milk while away.
Founder Kate Torgersen
started the company after
she found trying to ensure
her seven-month-old twins
got her milk from a four-day
work trip nearly impossible.
to leading cities in the
Netherlands and beyond, so
start-up teams can reach
Delft in 10 minutes, Schiphol
international airport in
under 30 minutes,
Amsterdam in under 40.
Rotterdam The Hague,
the local airport, serves less
international traffic than
Schiphol but is easier to get
to and faster to navigate.
Richard Newton
While some would
question why this should be
necessary when mothers
could be encouraged to take
longer maternity leave or
take part in meetings via
video conference, the site
has testimonials from
women who adore the
service. Emma D, an
attorney, says carting breast
milk through airport security
was “unpredictable and
stressful” and so prefers to
send it by “stork”.
But at $99 per shipment,
the service is out of reach
for many. That is where
some employers might step
in to provide it as a benefit
to help mothers go back to
the office — or, in this case,
the airport lounge.
IBM said in July that it
would create its own pump
and ship service for
breastfeeding mothers,
starting with US domestic
travel but going global later.
Twitter and Accenture have
followed suit, putting free
breast milk shipments on
the road to becoming yet
another tech company perk.
Wednesday 2 December 2015
Painter who was perfect — to a fault
Andrea del Sarto has suffered
centuries of condescension —
now New York’s Frick
Collection hopes to restore his
reputation. By Ariella Budick
I
f you’ve ever thought about Andrea
del Sarto at all, it may have been
with a vague flicker of disdain. The
phrase “boringly perfect” might
have come to mind. That judgment,
handed down by Giorgio Vasari in the
16th century and honed by Robert
Browning in the 19th, dogs Andrea’s first
ever US retrospective, Andrea del Sarto:
The Renaissance Workshop in Action at
New York’s Frick Collection.
Much of the exhibition consists of
exhaustive studies. In black and red
chalk, he rehearsed the way skin
stretches over a knuckle, how a neck
muscle tenses into a tracery of lines.
Curator Julian Brooks no doubt sees this
show as an opportunity to reclaim an
immense talent from centuries of con-
descension. In the end, though, it’s an
object lesson in labour, diligence and the
compulsive pursuit of the sublime.
I came to know Andrea del Sarto first
through words — cruel ones. Vasari, his
frenemy and former student, called him
a “faultless painter”, then made it clear
how barbed that compliment was. In his
hugely influential Lives of the Artists, he
ensured that Andrea would go down in
history as a follower, tagging capably
along after Leonardo, Michelangelo and
Raphael. “If Andrea had possessed a lit-
tle more fire and boldness of spirit to
The sketches offer
glimpses of an artist
who understood life’s
difficulties, but
preferred to elide them
correspond to his profound genius and
judgment in his art, without a doubt he
would have had no equal,” Vasari wrote
in a tour de force of backhanded praise.
Instead, Andrea, hobbled by “a certain
timidity of spirit”, lacked “glowing
ardour”, and consequently never gradu-
ated to the status of “truly divine”. The
accusations stuck. In 1913, Freud’s disci-
ple Ernest Jones repeated them, blaming
the painter’s failures on his wife.
The Frick’s concentrated, intense and
beautifully argued rebuttal almost won
me over. The figure in “Portrait of a
Young Man” (c1517-18), on loan from
London’s National Gallery, felt familiar
yet alien, someone I might have seen on
the street or noticed at a bar. He twists
around to stare, his gaze encountering
mine with acute precision. The mouth
curls into a slightly unfriendly smirk, a
look of eternal superiority. The planar
OPERA
The Fiery Angel
Nationaltheater, Munich
aaaae
Shirley Apthorp
The orgies in Bryusov’s novel were what
fascinated Prokofiev when he wrote The
Fiery Angel. They were probably what
provoked Stalin to ban the opera. And
they are an evident source of glee to
director Barrie Kosky in his new produc-
tion for the Bavarian State Opera.
Subtlety is not one of the main charac-
teristics of Prokofiev’s dark drama.
Renata, the tormented protagonist,
never seems sure where to find the
borders between religious ecstasy,
carnal desire and the occult. She starts
off modestly, drawing the knight
Ruprecht into her confused world, and
ends with a convent full of hysterical
nuns and the Grand Inquisitor himself.
Subtlety is not Kosky’s strong suit
temples and faceted cheeks swing
towards the viewer as if the whole head
were an intricate weapon, with the nose
its sharpest blade. Andrea drew several
sketches for this painting, but only in oil
does the man emerge from the gloom as
if drawn by the viewer’s glance. His
immediacy brought tears to my eyes.
And yet a powerful wind of caution
blows through religious scenes such as
“The Medici Holy Family” (1529). And-
rea assembles the actors with seeming
effortlessness. The composition flows in
a ballet of gestures and at the same time
abides with a pyramid’s solidity. With its
abundance of sketches, the Frick has
made it easy to see how he achieved that
air of contented solemnity — not just by
analysing every fold of skin and bend of
bone, but through a subtle act of
betrayal. In a chalk drawing of St Eliza-
beth, her face appears lacerated by time.
Softened:
‘The Medici
Holy Family’
(1529)
Palazzo Pitti, Florence
either, and his successes at Berlin’s
Komische Oper have afforded him
plenty of orgy training. The magician
Agrippa von Nettesheim comes
escorted by tattooed men in ball gowns,
and the tavern scene is peopled by
revellers in sadomasochistic get-up. To
cap it all off, the nuns are dressed as
Jesus, complete with crowns of thorns.
Before the sharp turn into high-camp
Tormented: ‘The Fiery Angel’
★ FINANCIAL TIMES 11
ARTS
Let’s hear it for the Baddies
Sarah Hemming rounds up But Baddies addresses an intriguing
problem. Traditional fairytales can be a
festive fairytale shows challenge to contemporary sensibilities.
Villains are defined by their size, looks
T
he scene is set. In time- or species, and some get pulverised.
honoured fashion, the Big Meanwhile the so-called Goodies often
Bad Wolf, having scoffed engage in questionable behaviour: Alad-
grandma and pulled on her din benefits from a stolen lamp; Jack
nightcap, is about to sink blithely steals the Giant’s belongings;
his teeth into Little Red Riding Hood Cinderella gets to marry a prince
when . . . boom: the lights go on and in because of her shoe size.
rush a pair of police officers to drag him Some contemporary shows tackle this
off to prison. Outraged, the Wolf pro- head-on by tweaking original tales. Sally
tests that he was simply doing his narra- Cookson’s new Sleeping Beauty at Bristol
tive duty, only to be informed by his fel- Old Vic reverses the genders of the
low prisoners — Captain Hook, the Ugly sleeper and the rescuer; the Royal
Sisters, Rumpelstiltskin — that “bad Shakespeare Company’s Wendy and Peter
guys are out of business”. Pan liberates Wendy from some of the
So starts Baddies: The Musical, a more sexist assumptions of the original;
delightful new production at London’s wonder.land at the National Theatre
Unicorn Theatre. This imaginative show refits Lewis Carroll’s tales of Alice for an
from Nancy Harris and Marc Teitler fol- internet generation.
lows the fairytale structure of so many Others plump for more recent stories
seasonal classics — good triumphing with more complex moral messages. At
over evil — but remixes the formula. London’s Old Vic, the villain is a greedy,
Here the villains are rebranded as harm- tree-felling businessman, as playwright
less by a smarmy Peter Pan and a super- David Greig adapts Dr Seuss’s The Lorax.
ficial Cinderella. “Once upon a time scar- In Manchester, Home goes for contem-
ing kids was all the rage,” says Pan, but porary fantasy, Inkheart, and Leicester
today, he adds, it’s all about marketing. Curve revels in sorcery with Roald
Purni Morell’s production walks a nice Dahl’s The Witches.
line between fun and getting its audience The National Theatre has come up
to think a little about what constitutes with a peach of a morality tale for
good and bad. The villains protest at younger children in Jon Klassen’s I Want
stereotyping and reveal hidden depths My Hat Back. Adapted by Joel Horwood
to vanquish the fake Goodies — and it is a with delicious jazz-inflected music from
joy to see Dean Nolan’s splendid Wolf Arthur Darvill, the story follows a dopey
(pictured) restored to proper grandma- bear who stalks the jungle searching for
consuming form at the end. his stolen hat. In Wils Wilson’s droll pro-
Indeed, as the Wolf observes, Baddies duction, Marek Larwood’s Bear, with his
come into their own at Christmas. With- shambling gait and doleful melting fea-
out them, most pantomimes would tures, is beautifully matched by Steven
have no story; British stages bristle Webb’s perky, thieving Rabbit.
with cackling villains. Among It seems clear who the villain is
London’s best rogues this year and many audience members glee-
are a monstrous Giant in Hack- fully inform on him throughout.
ney Empire’s Jack and the Then, snap: the Bear exacts ret-
Beanstalk; a scheming and ribution, leaving a dead
imperious Stepmother bunny and a momentary
in Cinderella at the
Lyric Hammer-
stunned hush. Happi-
ness is restored but
smith; a sneaky this, like all the best
King Rat in Dick festive fare, combines
Flesh has succumbed to gravity, heavy- Immediacy: Andrea del Whittington at raucous participation
lidded eyes speak of suffering and Sarto’s ‘Portrait of a Young Wilton’s Music with a little moral
fatigue, and faithfully scored furrows Man’ (c1517-18) Hall; and a deliber- complexity to chew on.
contain the poetry of age. The National Gallery
ately inept Captain Hook
If he had left her that way in the final in Peter Pan Goes Wrong ‘Baddies: The Musical’, to
version, this would have been a painting at the Apollo Theatre. December 24,unicorntheatre.com
about dread. Instead, Andrea tamped
down his own insight. He smoothed
Elizabeth’s skin and softened her frown,
erasing the old woman’s years and wis-
dom. How is it that the same painter
who made the leap from rough chalk
study to that stunning oil portrait of the
young man could also turn fierce
sketches into pabulum on canvas?
Browning explored the limits of
labour in his poem “Andrea del Sarto”.
The painter confesses his own “low-
pulsed forthright craftsman’s hand”,
and laments that some rough souls, who
have no fear of error, “reach many a
time a heaven that’s shut to me”. That
echo of Vasari may have seemed like a
timeless verdict, but it was really a state-
ment of the Romantic ideal, which
prized cultivated passion, by artists who
let their well-trained demons loose upon
a thunderous world.
I realise how absurdly anachronistic it
is for a critic in the 21st century to judge
a Renaissance master by the standards
of the 19th. But the Frick’s noble attempt
at revisionism doesn’t quite succeed.
Vasari was wrong to see Andrea’s flaw as
casual flawlessness, the product of a fac-
ile hand. Andrea came by bloodlessness
honestly, through hard work and self-
denial. The sketches offer glimpses
through the placid surface of an artist
who understood life’s difficulties, but
preferred to elide them. Did he know-
ingly struggle against his urge to buff all
the vibrancy out of crude existence?
Browning’s Andrea might wander
despondently through the Frick, reflect-
ing that, despite all the red-lined limbs
and glowing flesh, at its heart “All is
silver-grey,/Placid and perfect with my
art: the worse!”
To January 10, frick.org
smut, Kosky serves us a beautifully
wrought chamber piece with Ruprecht
and Renata’s twisted tryst in an opulent
hotel room. As Ruprecht is drawn into
Renata’s neurosis, the walls move and
the light changes. Is what happens next
real, or are we seeing their fevered fan-
tasies? We cannot be sure. But it is deftly
made and ineluctably entertaining.
We believe in it not least because
VladimirJurowskiseemstohaveplugged
the orchestra into a high-voltage current,
and the charge fills the house from start
to finish. Demonic possession seems
plausible in both Svetlana Sozdateleva’s
formidable Renata and Evgeny Nikitin’s
brutish Ruprecht. These huge roles
remain on the edge of madness for two
hours, and both singers hurl themselves
at their parts with frightening commit-
mentandimpressiveemotionalrange.
This is a savage, gripping evening
that leaves you feeling both elated and
sullied. No doubt that is what orgies are
meant to do.
To January 10, staatsoper.de
12 ★ FINANCIAL TIMES Wednesday 2 December 2015

Short on magic
Merlin’s share price is closely and inversely correlated with the strength of sterling.
This in part reflects how its assets are internationally dispersed, so that a strong
pound lowers the sterling value of overseas profits.

Twitter: @FTLex Email: lex@ft.com Merlin: a bet against the pound Merlin by region
Merlin share price (£) £ per US $ (%)
5 0.7
100
Linde: short-term pricing pressure on US Atlassian:
homecare contracts, but it has the Asia
breathe deeply highest growth rates and best margins Pacific 80 tech heretic
of all Linde’s business units. If you liked
In the event of a sudden loss in cabin that strategy on Monday, it is on sale Atlassian could be the most successful
pressure, oxygen masks drop. Investors today. Take a deep breath. UK 60 US tech IPO of 2015, despite rejecting
in Linde could do with them. After the 4 0.6 every value cherished in Silicon Valley.
market closed on Monday, the German There is that name: neither snappy like
industrial gases group, a big producer 40 Fitbit, cute like Etsy, nor simple like
of oxygen, became possibly the first
Zurich: Continental Square. There is its origin: Australia. It
company in the world to issue a profit Senn-t on his way Europe never bothered to raise external
warning for 2017. Its shares fell heavily 20 financing (what will the VCs say?) And
yesterday. It is a cruel, cruel response. The North in what can only be a deliberate bid to
The culprits are familiar. Slowing departure of Zurich Insurance chief 3 0.5 America 0
embarrass northern California, it does
growth in industrial production — executive Martin Senn was met with a not lose money. It has 10 years of
particularly in emerging markets — has market shrug: the company’s shares 2013 14 15 2014 Number of attractions profits, instead. Not the done thing.
resulted in weaker prospects for the moved less than 1 per cent. No FT graphic Sources: Bank of England; S&P Capital IQ; Merlin Revenues at Sep 2015 The enterprise software company’s
gases division, which accounts for most celebration. No despair. The world gave public offering next week aims to raise
of the group’s profit. Persistently low a collective “meh”. Perhaps it was up to $425m at a valuation of up to
oil prices have prompted customers of expected. Company bosses can survive Alton Towers’ rollercoaster “The distraction for bored children. Its can bring cultural befuddlement, $3.9bn. Buyers might warm to these
the engineering business to defer profit warnings, but not the sort that Smiler” remains shut. Six months biggest division, Midway Attractions, playing with Lego is so ubiquitous as heresies. Unlike other recent tech IPOs,
orders. The result is a likely 10 per cent force them out of an acquisition. The ago, it crashed and maimed several comprises about 100 smaller, urban to be a global language for children. there is not the sense that the value has
reduction in earnings before interest, writing was on the wall the moment passengers. Merlin Entertainments, venues including Madame Tussauds The risks that remain are boring already been strip-mined by connected
tax, depreciation and amortisation, to Mr Senn withdrew from a deal with which operates the theme park, faces and SeaLife, aimed at parents who will too. Its big UK resorts face the annual insiders. Profit comes from keeping
€4.2bn-€4.5bn for 2017 and lower RSA in September because of problems paying damages and the possible pay dearly for a few hours during threat of a wet summer driving the costs low by eschewing expensive sales
returns on capital — all in an industry in his own general insurance business. waste of an £18m asset. Yesterday’s which nagging, complaint and punters away. Tighter monetary teams; Atlassian spends half as much
that is commonly believed to be less The Swiss insurer has been specific trading update confirmed that such bickering decline. Marginally. policy might hurt: buying Merlin is in on sales and marketing as a proportion
cyclical than chemicals generally. about whom it wants next and, in the accidents can scare away custom for Combined with its six Legoland part a bet against the pound, as a of revenues as larger rival Salesforce,
A 14 per cent drop in the share price process, revealing. The winning months. parks, this gentler fare makes up stronger currency sends UK relying instead on happy customers to
for at most a 10 per cent fall in earnings candidate should be an insurance Merlin’s conservative finances will 70 per cent of revenues and suits customers overseas and makes spread the word. The bulk of its
targets is an overreaction to Teutonic specialist from outside the company. help it survive the current crisis. At Merlin’s incremental growth strategy. foreign income less valuable. In the revenues come from two products,
conservatism. The company’s Mr Senn spent a decade at Zurich but 100 per cent of equity, its debts are A Midway project costs less than UK, regulatory risk is also growing, JIRA and Confluence, which help
managers cannot possibly forecast the before that most of his career was in lower than for peers such as Six Flags £10m to develop. In Merlin theme and the mood is hardening against software developers collaborate, but
global economy in 2017. Nor is it banking. At Zurich he did what (240 per cent) and Cedar Fair (1,200 parks, the park is seldom owned, and the flexible labour contracts Merlin have also escaped geekworld to be used
exactly a secret that industrial demand bankers like to do: buy things, notably per cent). Unlike them, revenues are the theme (Shrek, Tussauds, CBeebies) needs for its seasonably variable by normal people.
is soft. This was the company’s second in Asia and Latin America. spread around the globe rather than is often licensed and already proven. If business. Finally, in a theme park the This model, impressive as it is, looks
alert and earnings estimates for 2015 Zurich used to be known for its concentrated in the US. It is less in Merlin has gambled, it is on Legoland, dull rides often charge a lower price. like it is becoming less efficient as the
had already fallen by a third in four underwriting discipline. Recent events the chancy business of selling thrills which it is expanding into Dubai, China Not in the stock market. Merlin trades company grows. In 2013, sales and
years. Currency movements may yet suggest that that has changed, than of supplying a staple good — and beyond. While overseas expansion at 21-times next year’s earnings. marketing costs were less than 13 per
rescue some of the lost profits; the euro especially in general insurance. Yes, cent of revenues; by fiscal 2015, they
could weaken further against the dollar there have been problems in the US, were more than 21 per cent. So while
as US rates rise, yet the company’s and Zurich was heavily exposed to the Atlassian still beats most peers —
guidance is based on today’s rates. And explosions in Tianjin, China. But the new boss is in position. And it is likely renewable energy “yieldcos”. risks. After jumping 68 per cent from Zendesk spends more than half of
tellingly, while Linde has talked down problem is bigger than that. In the first to lead to something more than a 1 per Prominent yieldco sponsors include its IPO price by May, Terraform Power revenues on marketing — it does so by
profit expectations, it has not said nine months of the year, three of its cent share price move. NRG Energy and Abengoa SA (the has since fallen four-fifths. smaller margins.
whether it will reduce planned capital four general insurance units reported a latter went bust last week). SunEdison, SunEdison still owns half of There are also questions over its next
expenditure in response. combined ratio (cost and claims as a the alternative power project Terraform, and its own shares are act. To diversify revenues, Atlassian
Anyone who owned Linde before percentage of premiums) of more than Yieldcos: developer, listed its first yieldco, down nearly 90 per cent since June. bought Hipchat, a more mainstream
Monday’s warning on the expectation 100 per cent, meaning they were Terraform Power, in July 2014. The parent’s $410m margin loan chat product. Nothing wrong with that,
of an imminent upturn in the business lossmaking at the underwriting level. creating a monster Terraform Global followed a year later. against its shares in Terraform and its but it is not fruit from the company’s
cycle was simply gambling. Investors, In the same period last year all but one Yieldcos are simple in principle. $2bn acquisition of rival Vivint Solar substantial research and development
by contrast, are interested in earnings were profitable. Imagine the corporate equivalent of When a new power plant is brought have spooked shareholders. Its debts spending, and it is overshadowed by
power though the cycle, valuation, and There is a plan to turn this round, Frankenstein’s monster: stitched online, it is sold to a yieldco, which stand at $12bn and it generates no Slack, a more widely used application.
strategy. And they have options, even but the board believes it needs an together from parts acquired in a strikes a purchase agreement with a profit. SunEdison says it has recently Right now, Atlassian deserves to have
within Linde’s industry. French rival outsider with plenty of insurance leverage-fuelled acquisition binge; utility, guaranteeing several years of refinanced the margin loan, is focusing the world in its grasp, as its name
Air Liquide is bulking up in the US by experience to deliver it. The wrinkle is fuelled by commodity prices; a payer of cash flow. Continuously adding new on liquidity rather than growth and has suggests. But its industry is brutally
acquiring Airgas for $13.6bn in cash. that the new CEO will have limited large dividends and therefore very projects to the yieldco can generate reasserted control over Terraform. competitive. Profit growth will be a
Linde, rather than doubling down on room for manoeuvre. Zurich will tell sensitive to interest rates. “It . . . cash flow growth of 20 per cent a year SunEdison believes that the asset class, heavier burden in the years ahead.
industrial customers, is building its investors by February of its plans for is . . . ALIVE!” cries the mad scientist or more, similar to the US “master like MLPs and Reits, will be better
healthcare business. It specialises in at- $3bn of spare capital. Options include (or rather banker) as the creature limited partnerships” that own oil and appreciated in time. It is more likely
home care for patients with chronic using it internally, making acquisitions lurches unsteadily out of the lab. gas pipelines. But rising interest rates, that the yieldcos, like Dr Frankenstein’s Lex on the web
For notes on today’s breaking
respiratory problems, a market with a and returning it to shareholders. That This is no horror film. It is an only weak oil prices and worries about the monster, are doomed to inhabit a world stories go to www.ft.com/lex
demographic wind behind it. There is decision is likely to be made before the mildly hysterical description of economics of renewables have revealed where they can never be at home.

970 Today’s temperatures

990 LOW 65
980 LOW Abu Dhabi Sun 29 Malta Fair 18
1 Amsterdam Cloudy 11 Manila Sun 33
1010
1000 Ankara Shower 6 Miami Cloudy 29
5 Athens Sun 21 Milan Fog 8
6 1 Bahrain Sun 26 Montreal Rain 5
50 Barcelona Sun 17 Moscow Cloudy 0
12 Beijing Sun 5 Mumbai Sun 33
Belfast Drizzle 12 Munich Cloudy 11
13 Belgrade Cloudy 10 Naples Sun 18
1020 Berlin Cloudy 11 New York Rain 14
11 5 2 W
11 Brussels Cloudy 11 Nice Fair 16
14 Budapest Drizzle 10 Nicosia Sun 21
LOW 9 10 27 Cairo Sun 21 Oslo Sleet 5
Cardiff Rain 13 Paris Cloudy 11
11 10 Chicago Sleet 4 Prague Cloudy 10
8 Cologne Cloudy 11 Reykjavik Snow -3
10
IGH Copenhagen Drizzle 10 Riga Cloudy 5
11 16 Delhi Sun 25 Rio Drizzle 27
16 6 Dubai Sun 29 Rome Sun 17
HIGH 17 LOW Dublin Drizzle 13 San Francisco Fair 16
Edinburgh Rain 13 Singapore Shower 31
19 16 18 Frankfurt Cloudy 11 Stockholm Fair 4
1030 18 21 Geneva Fair 8 Strasbourg Cloudy 12
1030 21
Hamburg Cloudy 11 Sydney Drizzle 19
Helsinki Sun 1 Tokyo Rain 12
2 20 20 21 Hong Kong Fair 26 Toronto Fair 6
1030 Istanbul Fair 12 Vancouver Cloudy 10
0 HIGH Lisbon Fair 19 Vienna Cloudy 13
Wind speeds in KPH 20
London Cloudy 14 Warsaw Cloudy 5
Forecasts by Los Angeles Sun 25 Washington Thunder 16
Wind speed Luxembourg Cloudy 9 Zagreb Fair 12
in KPH Madrid Sun 16 Zurich Cloudy 8

CROSSWORD ACROSS 3 In most of the night in Paris?

1 In general, nowhere is safe That’s tedious (5)
No. 15,103 Set by REDSHANK ultimately at sea (10) 4 Drugged girl caught in charge
        7 Forward at Twickenham of antiseptic (8)
barges in there (4) 5 Distraught WI’s hang-up: £51
9 It’s not for out-of-court battle for cleaner? (7-2,6)
  (4) 6 It’s very hard to get collar right
10 Cook should study this golf at the front (6)
course (10) 7 Steward left with a bloke (4,5)
 
11 Basque queen once forfeited 8 Funny bug coated in black
acres (6) stuff (7)
12 Fashionable attitude, for 14 Golfer hires pro, eliminating
example (8) error in skill set (9)
  
13 Jump over a rope at first, doing 16 Wearing suit? Emphatically so
 this in gym (8) (2,6)
15 South African driver absorbs 18 Bedridden chap lacking iron
    large amounts of material (4) receives help (4,3)

17 Turkey’s force cut (4) 20 Badminton prize does restrict
19 Painting I replaced with one of allotted time (7)
   Renoir’s in flat (8) 21 Big stone pieces in this spot,
22 PM’s edited diaries about Peel so I’m told (6)
finally (8) 24 Some spell in Gordonstoun,
  23 Finish investing last of 5 in some can’t (5)
Victoria (6)
25 Holmes to initiate subject of Solution 15,102
 
one of his cases (10) $ ) 7 ( 5 $ /
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26 Crazy students flood West End & 2 3 3 ( 5





















CROSSWORD
No. 14,845 Set by NEO

























ACROSS
1 Important Viking one among best
friends (5,4)
6 Socialite with appeal makes left-
side entry (5)
9 Brazilian city as far as we’re
concerned ungovernable (7)
10 Obscure English knight against
European rebuffed (7)
11 Poor nation’s little island in hot
current (5)
12 Caught flamboyant cardinal in
Seventh Heaven? (5,4)
14 Notice flock encircles houses (3)
15 Alarmist financier reversed into
second vehicle bearing right (11)
17 German poet’s the writer
embracing pub vocalist (11)
19 Moggy fur with hole concealed? (3)
20 Earl, King and Queen on
Hampshire river’s banks (9)
22 Ambassador in temple finds grain
(5)
24 Ardent Green must change leader
(7)
26 As one’s despicably mean, small
DOWN
1 Hard maths topic written up to find
circumference (5)
2 Love comes in no time, wildly, for
passion (7)
3 Disagreed also with a thousand
children (4,5)
4 Bond gets to a casino and is
beaten (11)
5 Beast summarising Tokyo-London-
Tokyo trip? (3)
6 Painter died hungry (5)
7 Discount supermarket name in
GB’s upturn with loss on top (7)
8 As 007 mission to Spectre might
be? (3-6)
13 Dope sheathes weapon in open
coat (11)
14 Soul an unknown factor in some
men? Fearless pilots? (9)
16 Girl having paddle round saw
manor demolished (9)
18 Mistress Gwynne about to be
announced in sport (7)
19 Side issue for Clintons (7)
21 Having ducks in horses area

7 5 , $ 1 * / (
(4)
tips for servants materialise (2,5) causes commotion (3-2)
JOTTER PAD 27 Sauce unfortunately knocked over 23 Crime article Financial Times
contains sulphur (5) provides (5)
28 Related martial artist stops at 25 Sick at first, old man here for
Bedouin residence (9) healthy holiday (3)
Solution to Saturday’s prize puzzle on Saturday February 14
Solution to yesterday’s prize puzzle on Monday February 16
Winners’ names will be printed in Weekend FT

= ( 2 2 ( /
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Wednesday 2 December 2015 ★ 13

Zurich Linde Merlin Euro/dollar US two-year Xetra Dax A$ / US$ Nikkei 225
Floating notes IPOs ‘pop’ in Treasury
New York, but not in HK 0.4% 13.88% 1.42% 0.5% 4bp 1.1% 1.3% 1.3%
JENNIFER HUGHES, PAGE 14
SFr269.90 €142.35 415p $1.0614 0.90% 11,261 US$0.7319 20,012

BlueCrest to In the black Pinewood Studios posts blockbuster

profits on back of Bond and Star Wars successes
Short
View
turn private James
Mackintosh
as fee income Transatlantic divergence has been the story of the past
18 months as the dollar has leapt a third against the euro.

dwindles
Divergence seems to go both ways. As data yesterday
underlined, the eurozone economy is looking stronger
than the near-certainty of further monetary easing from
the European Central Bank tomorrow suggests. Equally,
parts of the US economy are looking rather weaker than
might be assumed given the widespread expectation that
this month will see the first Federal Reserve rate rise in
3 Hedge fund’s assets shrink to $8bn almost a decade.
It is too early to say for sure but the evidence seems to
3 External investors to be pushed out support those who believe that since the crisis countries
are merely taking it in turns to gain a bit of growth by
devaluing their currencies.
MILES JOHNSON — LONDON bines a mix of BlueCrest funds, has done Consider the eurozone. After a weaker euro and quanti-
better, making an average 4 per cent a tative easing, banks are lending again, core inflation,
Mike Platt, the billionaire founder of the year for the past three years up until excluding energy and food, is out of the deflation danger
$8bn BlueCrest hedge fund, is pushing October of this year. zone and the broad money supply is growing as fast as it
out his external investors, arguing that “BlueCrest has not been delivering did from the euro’s creation until the crisis year of 2007.
the industry’s fee model is no longer compelling returns for several years, The latest figures show unemployment, while still high,
profitable enough to be worth the effort. and investors started to react,” said an dropped more than expected to the lowest since early 2012
BlueCrest has haemorrhaged billions institutional investor who previously and confirmed that manufacturing grew at its fastest rate
of dollars in assets as investors with- held money with BlueCrest. in more than a year. Europe seems to have been passed the
drew money in recent years, shrinking “For someone who has made as much growth baton.
from managing as much as $36bn. It money as [Mr Platt] has it must get tir- The evidence that US growth may be less solid than
said it would become a private invest- ing having all your investors ring you up thought came from surprisingly weak manufacturing
ment partnership and manage only and complain about you not actually data. The sector is shrinking at the fastest rate since the
Mr Platt’s fortune and money from being that great in terms of perform- 2009 recovery, according to the ISM purchasing managers'
other partners and employees. ance,” the investor said. index (see chart). The less internationally exposed serv-
“It is no longer a particularly profita- BlueCrest’s closure to outside inves- ices sector may be doing better, but signs of US wage
ble business to run a multi-manager tors comes in a challenging year for the growth remain tentative, at best (indeed, strip out rapidly
hedge fund on 2 and 20 per cent fees,” hedge fund industry when some of its rising rent and US core inflation is about the same as in
Mr Platt told the Financial Times. star managers have been wrongfooted Europe).
“Instead we are happy to be our own by markets and suffered painful losses. The figures do little to change the story of central bank
client and run our own amount of lever- At the same time hedge fund clients, divergence this month. There is scope for more short-term
age. We are going from earning 2 and 20 increasingly made up of pension funds, bets on a strong dollar, even if the dollar bulls retreated a
on clients’ money to earning 0 and 100 have become more critical of paying little yesterday.
on our own.” high fees for investment services, and However, it will be hard for Mario Draghi, ECB presi-
The term “2 and 20” refers to hedge sensitive to traders who borrow a lot of dent, to stay dovish if it really is the region’s turn to grow.
funds charging clients a flat annual fee money to boost their returns. Putting money on 2016 being another banner year for the
of 2 per cent of their invested assets, and “Clients have strict requirements dollar looks increasingly risky.
20 per cent of profits. The model has about levels of risk they want us to take James Bond film Spectre set a UK box office record by taking £40m in its first week — MGM Studios Inc
made multibillionaires of many hedge with their money,” Mr Platt said. Transatlantic divergence
fund managers, including Mr Platt, but “We have felt that this level of risk is Manufacturing purchasing
these fees have come down in recent not levered enough to generate the PETER CAMPBELL — LONDON ton Studios and Pinewood Stu- large films” because of size managers’ index
years under investor pressure. returns we want. At the same time some dio Wales together have 37 constraints. US (ISM)
Pinewood Studios reported
In 2014 Mr Platt was estimated to be clients have said we take on too much stages and three dedicated dig- Expanding the site is contro- Eurozone
blockbuster profits for the six
the sixth highest-earning hedge fund risk, and taken their money out.” ital television studios, making versial because it involves
months in which its south-east 50
manager, making $800m that year. He also said that the high cost of the group the largest studio in building on protected greenbelt
England site was used to pro-
The BlueCrest International Fund, its retaining traders had eaten into his Europe. land. But the £200m expan- Manufacturing is
duce the latest James Bond
oldest and once its largest, has suffered profits: “We pay more out to traders But the group is expanding sion, which will double the size shrinking at the
film Spectre and Star Wars: Epi-
large redemptions this year as it has than we receive in performance fees.” further to allow it to compete of the studio, was given the go- fastest rate since
sode VII — The Force Awakens.
posted several years of poor returns. By returning money to outside inves- with US venues in luring Holly- ahead last year. the 2009 recovery,
After surging 45 per cent in 2009, the tors Mr Platt follows other large hedge Half-year operating profits rose wood epics to shoot on its site. The first phase of the project, according to the
International fund has in the past three fund managers, including George Soros from £2.5m to £7m, although Chief executive Ian Dunleavy which is being part-funded by a 2007 08 09 10 11 12 13 14 15 ISM purchasing
years lost money or barely managed to and Stanley Druckenmiller, who have revenues slipped 0.7 per cent to warned this year that the studio £30m placing of 8m shares, is Source: Thomson Reuters Datastream managers' index
scrape into positive territory. converted their funds into private £38.2m. would “continue to be unable set to be completed in June
The AllBlue fund, a fund that com- groups that manage their own fortunes. Pinewood Studios, Shepper- to meet all the demand from 2016 and is on budget. james.mackintosh@ft.com

Zurich thrown into disarray as chief

Senn resigns after failed bid for RSA
RALPH ATKINS — ZURICH as interim chief executive — and dealt a Amro, said that Zurich’s strategy and
blow to possible internal successors by financial targets remained unchanged —
Zurich Insurance’s leadership was
saying he would seek as permanent and that he would stand for re-election
thrown into confusion yesterday after
replacement an external candidate who as chairman next year.
its chief executive quit, forcing the
was an “entrepreneurial leader” with The company was cash rich and “well
Swiss insurer into a hurried hunt for an
experience as a chief executive and capitalised”, he said, adding that the
external replacement.
“deep knowledge” of insurance. pace of turnover in top management
Rinehart mine shipments Martin Senn, who has led the company Zurich has been hit by a series of positions was “within the normal limits
start as prices hit fresh low for six years, stepped down after this senior management departures of global companies”.
year’s failed takeover bid for the UK’s recently, including the head of its Asked whether disappointed internal
Gina Rinehart, Australia’s richest RSA group and setbacks in Zurich’s gen- general insurance division, who quit for candidates for the chief executive posi-
person, is to make her first iron ore eral insurance business. personal reasons just weeks before the tion might also stand down, he said: “I’m
shipment — just as prices hit a seven- His departure pushes Zurich further problems in his division were blessed with a very strong and very
year low. Low ore prices have raised on to the defensive at a time when insur- announced in September. committed management team.”
questions over the $11bn Roy Hill ers are facing intense price pressures As well as a new chief, Zurich is Shares in Zurich closed the day little
project, fruit of the resources tycoon’s and are in the middle of a global consoli- searching for a head of its life arm to changed, down by 0.4 per cent at
long ambition to own and run a mine. dation wave. replace Kristof Terryn, who took over SFr269.90.
Analysis iPAGE 14 Tom de Swaan, Zurich’s chairman the general insurance unit in October. Lex page 12
since 2013, said that he would take over Mr de Swaan, a former banker at ABN Investors look for ‘fresh wind’ page 16

Companies / Sectors / People

Companies
AMD................................................................10
Abengoa SA................................................12
Accenture....................................................10
Activision......................................................17
Allergan...........................................................9
Anglo American.......................................23
Anthem............................................................3
Apax Partners...........................................23
Apple...............................................................16
Atlassian.......................................................12
Audi.................................................................17
BHP Billiton................................................14
BP.......................................................................9
BTG Pactual..............................................1,4
Babcock........................................................23
Barclays.............................................15,22,23
Berkshire Hathaway..............................16
BlueCrest......................................................13
Borealis..........................................................16
British American Tobacco.................14
CME Group...........................................22,24
Cedar Fair....................................................12
China Asset Management.................24
China Huarong.........................................14
China Media Capital..............................16
China Steel Corporation.....................14
Citic Capital.................................................16
City Football Group...............................16
Cummins.......................................................23
Deutsche Börse.......................................24
Drax.................................................................23
Eli Lilly...........................................................23
Eon...................................................................14
Exide...............................................................10
Financial Times.........................................15
Fortescue.....................................................14
Freeport-McMoRan................................15
GF Securities..............................................14
Gazprom ........................................................6
GitHub...........................................................22
Glencore.......................................................24
Global Infrastructure Partners........16
Goldman Sachs........................................24
HSBC..............................................................22
Hammerson................................................23
Hancock Prospecting............................14
Hudson River Trading.........................22
IBM...................................................................10
ITC Holdings..............................................16
Iberdrola........................................................16
Intercontinental Exchange................24
JPMorgan.....................................................14
Johnson & Johnson.................................7
Joy Global....................................................23
Lego.................................................................17
Linde....................................................12,17,23
Lloyds............................................................22
Macquarie....................................................16
Man City.......................................................16
Manchester City.......................................16
Manchester United.................................16
Marubeni Corporation..........................14
Mattel..............................................................17
Medtronic.......................................................3
Merck..............................................................23
Merlin Entertainments..........................12
Milk Stork....................................................10
Mitsubishi Pencil......................................17
NFX.................................................................24
NRG Energy................................................12
National Grid..............................................16
NextEra Energy........................................16
Nikkei Group..............................................15
Nissan.............................................................17
OnDeck Capital.........................................14
Pearson..........................................................15
Petrobras.....................................................1,4
Pfizer.................................................................7
Pinewood Studios...................................13
Posco..............................................................14
Premier League........................................16
Premier Oil..................................................23
RSA.............................................................12,13
RWE...........................................................14,23
Renault...........................................................17
Riksbank.......................................................22
Rio Tinto.......................................................14
Royal Bank of Canada..........................15
Royal Bank of Scotland................22,23
SGX...........................................................24,24
Salesforce.....................................................12
Samsung Electronics.............................16
Serco...............................................................23
Six Flags........................................................12
Skoda..............................................................17
Sony.................................................................17
Sophos...........................................................23
Square............................................................14
Standard Chartered...............................22
SunEdison....................................................12
Swiss National Bank.........................4,22
Swiss Re........................................................16
Terraform.....................................................12
Tower Research Capital.....................22
Transport for London............................9
Twitter...........................................................10
UBS..................................................................16
US Steel...........................................................3
Uber...................................................................9
VTech.............................................................17
Vale..................................................................14
Valeant.............................................................7
Virgin Money.............................................23
Vivint Solar..................................................12
Volkswagen.................................................17
Walt Disney.................................................17
Weir.................................................................23
Yum Brands................................................23
Zendesk.........................................................12
Zurich Insurance.................................12,13
Zypre..............................................................10
Sectors
Automobiles................................................17
Banks..............................................4,14,15,22
Basic Resources................................22,24
Energy..................................................9,14,16
Financial Services...................................22
Industrials...............................................12,17
Insurance.................................................12,16
Media.........................................................13,15
Mining......................................................14,24
Oil & Gas............................................9,16,24
Personal & Household Goods.........17
Pharmaceuticals.....................................7,9
Technology......................................10,12,16
Tobacco........................................................14
Transport.......................................................9
Travel & Leisure.............................9,12,16
People
Buffett, Warren.........................................16
Büchele, Wolfgang..................................17
De Swaan, Tom...................................13,16
Dimon, Jamie.............................................14
Dong-jin, Koh.............................................16
Dunleavy, Ian.............................................13
Eng, Chris.....................................................17
Ermotti, Sergio..........................................16
Esteves, André.............................................1
Hirsch, Jonah.............................................10
Jong-kyun, Shin........................................16
Kita, Tsuneo................................................15
Loh, Boon Chye.......................................24
Nasser, Amin..............................................16
Okada, Naotoshi.......................................15
Passione, Vince........................................14
Platt, Mike....................................................13
Reitzle, Wolfgang....................................17
Ridding, John.............................................15
Rinehart, Gina............................................14
Roy Taylor, ................................................10
Senn, Martin....................................12,13,16
Stadler, Rupert..........................................17
Terium, Peter.............................................14
Terryn, Kristof...........................................13

© The Financial Times Limited 2015 Week 49

14 ★ FINANCIAL TIMES Wednesday 2 December 2015

COMPANIES
INSIDE BUSINESS
Energy
ASIA

RWE to spin off renewable power unit Jennifer

Hughes
Restructuring is utility Germany’s Energiewende policy, or response to the transformation of the 40,000 results. RWE forecasts group ebitda of
energy transition, is having far-reaching European energy landscape.” between €6.1bn and €6.4bn this year.
group’s response to radical Share of RWE’s

changes in German policy

JEEVAN VASAGAR — BERLIN
RWE, Germany’s second-largest utility,
yesterday responded to radical changes
in energy policy by unveiling plans to
spin off its operations focused on renew-
able power, electricity distribution and
consequences for the country’s utilities.
Germany wants to generate 80 per
cent of its electricity from renewable
power such as wind and solar by 2050,
up from about one quarter today, as part
of efforts to combat climate change.
Subsidies for renewables have increased
power generation, and depressed
wholesale electricity prices, and this has
damaged the profitability of the utili-
RWE’s shares rose almost 14 per cent
to €12.40 yesterday. The stock is the
worst performer on the Dax index this
60,000 staff who
would work for
the new company
About 40,000 of RWE’s 60,000 staff
would be employed by the new com-
pany. The plans are subject to approval
Why IPOs see ‘pops’
year, losing more than half its value.
As well as nuclear decommissioning, 14 %
by RWE’s supervisory board, which is
due to meet on December 11. in the Big Apple but
the rump RWE group, based in Essen,
will focus on power generation from fos-
sil fuels, and energy trading. Half of pro-
The amount that
RWE’s shares
rose yesterday,
The group has been struggling to raise
capital. Moody’s changed RWE’s out-
look from stable to negative in April,
not in Hong Kong
ceeds raised from the listing of the new to €12.40 putting the company on notice for a pos-
company will be invested in renewables. sible reduction in its investment grade

retail sales.
The group is proposing the creation of
a separately listed company late next
year where 10 per cent of its stock will be
sold to investors through the issue of
new shares. RWE plans to retain a
majority stake in the new company
after the initial public offering.
RWE’s proposal to split is similar to
plans by rival Eon, and highlights how
ties’ coal and gas-fired power stations.
The utilities’ shrinking margins have
made it harder for them to raise capital
to invest, and led to concerns about how
they will finance the dismantling of
their nuclear power stations, which
must be phased out under the govern-
ment’s energy policy.
Peter Terium, chief executive of RWE,
said: “The group’s restructuring is our
Mining. Project launch
The group generated just 5 per cent of
its electricity output from renewables in
2014, and Mr Terium admitted last year
that RWE was “possibly too late” invest-
ing in solar and wind power.
The new company, which is also likely
to have its headquarters in Essen, would
have earnings before interest, tax,
depreciation and amortisation of over
€4bn based on estimates for RWE’s 2015
creating rating. Standard & Poor’s cut its
rating on RWE’s long-term debt in
August.
Thomas Deser, a fund manager at
Union Investment, a top 30 RWE share-
holder, said: “Peter Terium recently
complained that he had no new
resources to invest for growth. This [list-
ing] will make new resources available,
and bring the rating agencies on board.”
W
hen Square’s shares surged 45 per cent
on their first day of trading in New York
last month, the online payments group
shrugged — publicly, at least. Its opening
day “pop” ranked just fifth among US ini-
tial public offerings in the year to date, and 27th in the past
five years.
But if a Hong Kong IPO had resulted in a one-day price
rise of that magnitude, it would have been truly remarka-
ble. Opening-day pops among Hong Kong listings are so
rare that the 0.32 per cent price rise enjoyed by China
Huarong Asset Management on its IPO put it into the city’s
top 10 debuts for the year.
Even the biggest pop in Hong Kong this year — the 35 per
cent enjoyed in March by GF Securities, the mainland bro-
ker, at the height of China’s market rally — was comforta-

Tycoon’s ore shipments begin as prices flounder
Australia’s Gina Rinehart
shrugs off worries over profits
at her $11bn Roy Hill project
JAMIE SMYTH — SYDNEY
Gina Rinehart, Australia’s richest per-
son, is set to make her maiden iron ore
shipment — just as prices hit a fresh sev-
en-year low.
Collapsing prices for the steelmaking
commodity have raised questions over
the $11bn Roy Hill project, fruit of the
resources tycoon’s life-long ambition to
own and operate a mine, as to whether it
will generate profits or further depress
the iron ore market.
Mrs Rinehart shrugged off these con-
cerns, saying that the loading of the MV
Anangel Explorer ship at Port Hedland,
Western Australia, was a “truly momen-
tous occasion”. “To paraphrase the great
Winston Churchill, may I say to the
employees of Hancock Prospecting and
Roy Hill — the light of history shall shine
on all your hard hats, and the first Roy
Hill ship,” she said.
‘We will have to wait
and see how sustainable
the mine is when things
settle down over time’
Analysts demurred. “It’s the worst
possible time for a new project to go into
production with spot prices at their low-
est level since iron ore indices were cre-
ated several years ago,” said Daniel
Hynes, a senior commodity strategist at
ANZ Bank.
The benchmark price for immediate
delivery into China fell almost 3 per cent
to $41.60 a tonne yesterday, according
to the Steel Index. That is the lowest
level since spot price assessments
started in 2008, and only slightly above
the $40 a tonne that analysts believe to
be Roy Hill’s cost of production.
Four years ago, the price of iron ore
Iron ore
$ per tonne
150
100
50
0 of iron ore, coal, media and
2012 13 14 15
Source: Thomson Reuters Datastream
peaked at more than $180 per tonne —
the culmination of a big run-up in
demand to feed China’s infrastructure
boom.
The rises were also the consequence
of a shift away from annually negotiated
prices for iron ore, which allowed min-
ers to profit spectacularly during a long
commodities bull run.
The surge in Chinese demand induced
the largest iron ore miners, including
Rio Tinto, Vale and BHP Billiton, to
invest billions in extra capacity. Fortes-
cue Metals Group, an Australian
start-up, also carved out a big part of the
market.
Now the boom in low-cost production
from those companies is hitting the
market while demand from China,
which remains the world’s biggest
consumer of iron ore, has cooled.
Ms Rinehart is a controversial
figure in Australia where she
owns billions of dollars worth
farming businesses. She is
engaged in a court battle
with two of her four chil-
A digger at work dren related to her control of Hancock
at the Roy Hill Prospecting, the company her prospec-
iron ore project. tor father Lang Hancock founded 60
Below: Gina years ago.
Rinehart — Philip Until now, Hancock Prospecting has
Gostelow/Bloomberg
earned most of its revenues from royal-
ties on iron ore tenements — govern-
ment permits for the exploration and
development of land — discovered in the
Pilbara region of Western Australia,
which were developed by miners such
as Rio and BHP.
But by partnering with steelmakers
in Japan, Taiwan and South Korea and
executing the world’s largest mine
financing deal to develop Roy Hill, Mrs
Rinehart has transformed Hancock
into a competitor of the established
miners.
Mrs Rinehart sold a 30 per cent stake
in the Roy Hill project to Japan’s
Marubeni Corporation, South
Korea’s Posco and Taiwan’s
China Steel Corporation to
share project risk and lock in
key customers in 2012.
At that time the iron ore
price was above $100 a tonne
and bumper profit margins were
expected.
Most analysts now forecast that iron
ore prices will remain under pressure
due to continued overcapacity.
“Cash costs are always higher at the
beginning of a project and we will have
to wait and see how sustainable the [Roy
Hill] mine is when things settle down
over time,” said Mr Hynes.
Rio, BHP and others say their unit
production costs have reached such low
levels that they are still earning healthy
margins on sales. Currency depreciation
in Brazil and Australia has also helped.
Yesterday, Vale said the cost of land-
ing a tonne of its iron ore in China had
fallen from more than $56/t last year to
just over $31/t. BHP has said production
costs for Australian iron ore this year
will be as low as $15/t, 20 per cent lower
than last year.
When it enters full production in 15 to
24 months’ time, Roy Hill will add 55m
tonnes of iron ore per year to a seaborne
trade, which in 2014 was 1.3bn tonnes.
Additional reporting by James Wilson and
Neil Hume
bly behind that of Square.
Nevertheless, for all its apparent lack of excitement,
Hong Kong is about to retake the capital-raising crown
from New York for the first time since 2011. New listings on
the Hong Kong exchange have raised almost $30bn so far
this year, according to Dealogic, compared with $19.6bn on
the New York Stock Exchange and $17.5bn for Nasdaq.
It is a battle that highlights the differing interests of
investors and companies in IPOs, and the very different
characteristics of the two markets themselves.
To investors and bankers bringing companies to market,
one of New York’s great advantages is its flexibility. US
bankers can price an IPO below their initial price range if
they feel market conditions, and uncertainty over investor
appetite, warrant it. By contrast, Hong Kong rules mean
that, once a deal is opened to the public, the price range
cannot be altered. In Square’s case, it was possible for
bankers to price the IPO at $9 a share, below the initial
$11-$13 range they had given.
“You can get orders in New York where someone
says, for example, I want $10m at $9 [a share] and I’m
good at $10, too — so the order book really reflects the mar-
ket appetite, unlike Hong Kong,” says a senior Hong
Kong banker.
Another reason why the New York IPOs tend to pop
more dramatically than
those in Hong Kong is the
“friends and family” mental-
‘If you’re a
ity common among China’s company outside
capital-seeking state-owned
enterprises, whereby they
the S&P 500,
come with funding from fel- you can get
low SOEs.
These friendly backers
lost in the US’
offer support as cornerstone
investors — locked up for six months after the float — and
their early orders help the IPOs of fellow SOEs succeed. But
they are usually motivated by strategy, not valuations.
That leaves less room for later investors to debate, or influ-
ence, pricing.
Huarong, for example, tied up a record 70 per cent of its
$2.3bn offering in October with cornerstone investors. It
also used 24 banks for the deal — a global record.
Bankers say the mix of participants in Hong Kong IPOs,
who have varying interests, makes it harder, too. “In the
US it’s all institutional; here it’s a mish-mash of everyone:
institutional, retail, SOE, high net worth, you name it,”
said one long-time Hong Kong equities specialist.
However, if Hong Kong cannot match New York for flex-
ibility of pricing, and sophistication of investors, its lower
first-day gains do at least imply that companies, rather
than investors, are getting more value from the float than
they might in the US.
New research supports this, at least for companies of a
certain size. According to a paper published by Australia’s
Macquarie Graduate School of Management, the average
first-day gain for companies with a market capitalisation
of between $1bn and roughly $3.5bn is 3.8 per cent in Hong
Kong, compared with 17.3 per cent in the US.
Researchers chose to study companies of this size
because it includes large groups, but not those that would
be included in the S&P 500 with the added attention that
membership brings. It also includes the likes of Square and
most of Hong Kong’s IPO highlights this year.
Alex Frino, dean of MGSM and an author of the report,
says the findings suggest that Hong Kong — and other, less
deep markets — may be a better place for groups of this
size to list.
“If you’re a company outside the S&P 500, you can get
lost in the US,” Prof Frino says. “In the US, these guys are
called small-caps — but they can be large-caps elsewhere.”
With just one mega-listing on the horizon in Hong Kong
— China’s Postal Savings Bank — the reasons for smaller
groups to choose the city should at least give HK’s grum-
bling bankers something positive to sell.
jennifer.hughes@ft.com

Banks Tobacco

JPMorgan eyes push into marketplace lending Ex-BAT worker takes bribery claims to SFO
BEN MCLANNAHAN — NEW YORK
JPMorgan Chase is planning a move
into online lending to small businesses,
seeking to tap into the explosive
growth of the marketplace-lending sec-
tor since the financial crisis.
A flurry of specialist marketplace lend-
ers has emerged in the US in recent
years, most of which combine simple
online loan applications with virtual
platforms to package and sell assets to
yield-hungry investors.
The biggest-listed lender to small
businesses, OnDeck Capital, originated
$1.3bn of loans in the first nine months
of this year — up almost 70 per cent
from the same point a year earlier. Until
now many of the big bricks-and-mortar
banks have stayed on the sidelines,
sometimes funding the upstarts via
their own balance sheets.
But an entry by JPMorgan Chase, the
biggest retail bank in the US by deposits,
signals that traditional lenders are no
longer content to pass up potential cus-
tomers of their own.
At a panel discussion in New York
yesterday, Jamie Dimon, chairman and
chief executive, said the bank would
look to break into online lending to
small businesses by partnering with an
existing operator.
“The kind of stuff we don’t want to do
or can’t do, there’s somebody else who
can do it and do it probably well. So this
is going to be collaborative,” he said.
Vince Passione, founder and chief
executive of New York-based LendKey,
which offers student, auto, and personal
loans over the web, said that such a
move by JPMorgan would “solve a basic
economic problem — that it is very diffi-
cult for a big bank to turn around small-
dollar loans for business owners. Having
a partnership with an online lender
makes all the sense in the world.”
Analysts at Morgan Stanley expect
the marketplace-lending sector to move
from the margins to the mainstream
within the space of five years.
ALIYA RAM — LONDON
JOHN AGLIONBY — NAIROBI
A former British American Tobacco
employee who has accused the ciga-
rette company over bribery of officials
in east Africa will today meet the Seri-
ous Fraud Office in the UK to submit
evidence under whistleblowing legisla-
tion.
Paul Hopkins, who appeared on the
BBC’s Panorama programme on Monday
alleging that he paid bribes on behalf of
BAT to undermine antismoking laws
and to gain share in the fast-growing
African market, will provide a tranche
of documents to the SFO implicating UN
officials and local politicians in bribery
and corruption.
Anti-corruption officials in Kenya and
Rwanda said they had not yet received
formal complaints related to BAT so
were not investigating the company,
which is the world’s third-largest
tobacco group by market share.
An inquiry by the SFO could trigger
an investigation by the Department of
Justice in the US which “tends to be
much more aggressive in finding cases”,
according to Robert Barrington, execu-
tive director at Transparency Interna-
tional, a global anti-corruption lobby
group.
If the SFO launches an inquiry into
BAT, the maker of Lucky Strike and Pall
Mall cigarettes could face action under
US and UK bribery legislation which
covers allegations brought anywhere in
the world.
BAT said yesterday: “We have made it
clear to the BBC that their sources are
unreliable and that we categorically
deny the suggestion that this is how BAT
operates around the world.”
Mr Hopkins, who worked at BAT in
Kenya for 13 years before taking redun-
dancy, leaked emails to the BBC which
he said showed BAT had bribed two
members and one former member of
the World Health Organisation’s Frame-
work Convention on Tobacco Control.
Wednesday 2 December 2015
Court case focuses on M&A conflicts
Four years after buyout, RBC found to have given tainted advice to ambulance company board
SUJEET INDAP AND
JAMES FONTANELLA-KHAN — NEW YORK
The 2011 private equity buyout of US
ambulance company Rural/Metro was
an unremarkable takeover that earned
Royal Bank of Canada $5m in advisory
fees.
But four years later a legal ruling
about the deal from a closely watched
US court could well reshape the land-
scape for Wall Street’s mergers and
acquisitions specialists.
At a time when M&A activity is boom-
ing, and a handful of leading banks are
competing to both advise and finance
big-ticket deals, the ruling on Monday
from the Supreme Court of Delaware
makes clear that banks must take con-
flicts of interest more seriously.
The court, which hears disputes in the
state where most US groups are incorpo-
rated, found that RBC owes $76m plus
interest to damaged Rural/Metro share-
holders because it provided tainted
advice on the $728m buyout by War-
burg Pincus.
The decision upheld a lower-court
ruling that the bank had “aided and
abetted” the failure of Rural/Metro
board members to get the best deal for
their shareholders.
The lower court found that RBC’s con-
flicts of interest — it was advising the
seller while simultaneously trying to
garner financing fees from the buyer —
had led it to manipulate the Rural/
Metro board into accepting a deal price
that had undervalued the company. The
‘Large banks are going to
conclude that the marginal
sellside mandate is not
worth the legal risk’
fact that Rural/Metro eventually went
bust was not considered sufficient
defence.
Monday’s ruling could have serious
consequences for dealmakers because it
undermines one of the basic assump-
tion of M&A banking — that advisers do
well financially regardless of how ulti-
mately successful the transaction
proves to be.
RBC earned just $5m in deal fees for
selling Rural/Metro. But its penalty was
more than 10 times that, because it was
calculated as the difference between the
tainted sale price and the theoretical
company value the court assigned.
Suddenly, simple, fee-based M&A
services appear to contain far more risk
for the bank. As a result, bankers may
become more cautious about taking on
advisory assignments, and some may
steer away from them entirely, bankers
and lawyers say.
“The risk/reward balance has
changed. Many of the large banks are
going to conclude that the marginal sell-
side mandate is not worth the legal risk
and will rather pursue the financing
piece,” said one litigator who represents
investment banks. “Those marginal
sellside assignments will migrate to the
boutique banks.”
Lawsuits against company boards
over deal prices are common. Plaintiffs’
lawyers routinely allege that directors
have breached their fiduciary duty by
Media
Nikkei vows to pursue growth after buying FT
DANIEL THOMAS — LONDON
Nikkei has pledged to back the expan-
sion of the Financial Times after the
Japanese group completed the acquisi-
tion of the London-based publisher,
bringing together two media groups
with a combined history of close to
270 years.
Tsuneo Kita, chairman of Nikkei Group,
said his employee-owned company
would pursue “quality growth” with the
FT, not profit through cost-cutting.
“Quality growth generates quality
profit,” he said at a reception with staff
in London. Mr Kita added that the edito-
rial independence of the news organisa-
tion would “never change”.
“Now we begin our journey to making
Nikkei-FT the most powerful, most
exciting, most exhilarating business
media alliance in the world.”
Lionel Barber, editor of the FT, said
Nikkei would “invest and deliver a fresh
wave of innovation in editorial in 2016”.
He pointed to the development of
comment and analysis across digital
platforms and a planned investment of
greater resources in expanding the
FT Alphaville financial blog, using an
internal editorial innovation fund.
Video would be a third focus for
expansion, he added, as it was a “crucial
Legal disputes
M&A deals
challenged by
shareholders
44%
2007
selling the company on the cheap.
Dubbed “peppercorn” suits because the
claim resolutions are so small, they are
often summarily settled. Plaintiffs’ law-
yers receive a few hundred thousand
dollars and shareholders get nothing.
But the Delaware court is slowly
upending that dynamic. In a handful of
recent cases, judges have expressed mis-
givings about treating such cases as nui-
sance suits. In a landmark ruling in
October, a Delaware court refused to
approve a payout to plaintiffs’ lawyers
who were questioning the price paid by
Hewlett-Packard for its purchase of
Aruba Networks.
But even as they rejected some easy
settlements, some Delaware judges have
The judge banks dread
Laster on mission ‘to clean
up corporate America’
The man most feared by the masters of
the M&A universe isn’t anywhere near
Wall Street but 125 miles south of
Manhattan on the chancery court in
Wilmington, Delaware. Over the past six
years, Travis Laster has shown no
patience with bankers when he believes
they have cheated shareholders.
In 2011, Chancellor Laster smacked
Barclays for trying to engineer an
element of the FT’s text-plus journal-
ism”.
Mr Barber said: “We will sharpen our
offering to give our viewers more of
what they want, and develop new forms
shaped around what we do best.”
Nikkei struck the deal to acquire the
Financial Times editor Lionel Barber introduces Nikkei chairman
Tsuneo Kita (centre) to staff in the FT newsroom in London yesterday
★ FINANCIAL TIMES
COMPANIES
opted to reward those claimants who dig
deeper and can show fundamental mis-
conduct by either board members or
their corrupted advisers. In fact, the
Rural/Metro case only came about after
a judge turned down an earlier settle-
ment, creating an opportunity for more
ambitious lawyers to search for evi-
dence of RBC’s wrongdoing.
RBC is not the first bank to face allega-
tions that it was too focused on securing
additional business. In the 2010 $4bn
buyout of food company Del Monte,
Barclays was alleged to have steered the
deal toward private equity buyers who
would have relied on the bank for
financing fees, which are far larger than
deal advice fees. Barclays ultimately set-
outcome in the sale of Del Monte that
would have ensured the bank a big
financing fee. In 2014, he awarded an
unprecedented $76m judgment to
shareholders of Rural/Metro because
the group’s banker had also tried to win
financing fees by steering a sale to a
preferred buyer. His ruling was affirmed
on Monday by the state’s top court.
Chancellor Laster, previously a
corporate attorney, is seen as a brilliant
judge. “He’s the smartest guy in the
courtroom. He has an amazing
knowledge and perspective of
Delaware law and where it came from.
FT for £844m in July, bringing down the
curtain on Pearson’s 58-year ownership
of the business at a time of upheaval in
the global media industry. The acquisi-
tion is the largest international media
deal by a Japanese company.
John Ridding, chief executive of the
93%
2014
Photo: Alamy
tled for $24m. Since then, the practice of
sellside bankers offering buyers financ-
ing packages — so-called stapled financ-
ing — has been sharply curtailed. But
the courts are also scrutinising other
types of alleged misbehaviour
Earlier this year Credit Suisse paid
$16m to settle charges over its work for
mining group Freeport-McMoRan. And
Goldman Sachs is facing questions
about its actions in the 2014 $4bn buy-
out of Tibco Software.
These cases, along with the RBC judg-
ment, have put Wall Street on notice,
but observers point out that not all the
cases are going against the bankers.
“Bankers act like the sky is falling
every time a decision like this happens.
He works hard to get things right from
both a legal and moral perspective,”
says Randall Baron, an attorney for the
Rural/Metro shareholders.
But critics worry about his approach.
A bank lawyer who has known him for
years says: “He thinks his job is to clean
up corporate America. He’s extremely
smart and that can be dangerous
because he can rationalise any
argument.”
Still, his record is varied. In a defeat
for shareholders, he recently dismissed
a case about the price Hewlett-Packard
paid for Aruba Networks. Sujeet Indap
FT, said the deal would prove that “great
journalism can be a great business”.
“The flood of information, misinfor-
mation, explosion of channels and
sources underline the need for integrity,
authority and accuracy, and reinforce
the value and importance of our mis-
sion,” he added.
“The sustained and expanded suc-
cess, reach and influence of the Finan-
cial Times [will be] driven by quality
global growth founded as ever and for-
ever by the highest quality journalism.”
The FT has about 750,000 paid sub-
scribers, of whom 550,000 subscribe on
a digital platform. It aims to increase
this number to 1m. The flagship Nikkei
newspaper has about 3.1m subscribers.
Nikkei has already planned several
joint projects with the FT. This month,
600,000 Tokyo-area households that
subscribe to the Nikkei will receive an
FT sampler, with projects planned such
as special reports, events and co-ordina-
tion among journalists on global stories.
Naotoshi Okada, chief executive of
the Japanese media group, said that dur-
ing secret talks in the summer his inner
circle dubbed Pearson “pigeon”, the FT
“falcon” and Nikkei “nest”.
“Welcome to your new nest,” he said
at Nikkei’s Tokyo HQ, in a speech
streamed live to the FT in London.
15
Banks
Lenders’
shares rise as
BoE signals
end to era of
bank-bashing
Litigation outcomes
For all M&A deals (%)
Pending/other Withdrawn CHRIS GILES, CAROLINE BINHAM AND
Judgment by plaintiff MARTIN ARNOLD — LONDON
Dismissed Settled
by court The Bank of England drew a line under
the era of bank-bashing yesterday,
demanding no new buffers to curb
100
excessive lending in a move which cap-
80
tured the post-election mood of the
government that the time to be tough
on banks is over.
60 Although the UK central bank will
establish a new “countercyclical capital
40 buffer”, Mark Carney, bank governor,
was clear that this would be a relabelling
of existing capital requirements rather
20 than a new demand. He also announced
that the BoE would take no action to
curb lending in unsecured personal
0
loans and buy-to-let markets.
2007 08 09 10 11 12 13 14 Shares in Britain’s big banks rose as
they all passed the second annual stress
tests and because of the unexpected
Settlement terms leniency of the BoE.
Over 2010-14, average (%) This tone of reassurance was ampli-
fied when a senior official at the BoE
Reduction in held a conference call with the main
termination fee Pending/other banks’ finance directors after the stress
5.4 test results were published to emphasise
it had no plans to raise capital require-
ments for the sector. One bank execu-
Disclosure
only tive said the call was “most welcome”.
Monetary 10.0 Contrary to expectations that the BoE
5.8 would justify its stance of holding inter-
78.8 est rates at rock bottom with signifi-
cantly higher capital requirements in
good times, Sir Jon Cunliffe, a deputy
governor, stressed in an interview with
the Financial Times that the BoE judged
its role as seeking to use regulation to
strengthen lenders in good times rather
Sources: Thomson Reuters; SEC filings; court dockets;
Cornerstone Research
than tame the credit cycle.
Mr Carney added: “There is no Basel
IV,” referring to concerns over a tighter
Really, advisers are now just going to round of global banking regulations.
need to be more careful about disclosing “Our objective has never been to raise
potential conflicts,” says Boston College capital without limit, or raise it by
law professor Brian Quinn. stealth.”
The Delaware judge who has been The BoE’s Financial Policy Committee
most outspoken against Wall Street, said yesterday that it “intends to make
Chancellor Travis Laster, who ruled active use of the time-varying counter-
against RBC, recently praised Lazard for cyclical capital buffer” — the capital
its work advising on the management banks must build up in good times to
buyout of Dole Food and dismissed ensure they can operate their core bank-
claims against Deutsche Bank, which ing functions in the event of a shock.
was also involved in the deal. But it declined to raise that buffer
And just a few weeks ago, a claim immediately from 0 per cent and said
against Merrill Lynch, in its role as any increase, expected in March, would
banker to jewellery company Zale, was not raise overall capital requirements
dismissed. The court found that where for the UK banking system because it
there is no evidence of fraud by an would relabel existing regulatory capi-
adviser, shareholder approval of a trans- tal requirements.
action can clear a banker of aiding and Bob Penn, regulatory partner at Allen
abetting a breach of duty. & Overy, said: “I sense this is part of the
Even the Delaware Supreme Court continuing softening of political and
affirmation of the RBC judgment had regulatory banker-bashing; it’s very sig-
good news for bankers. The judges nificantly downplayed, particularly in
wrote: “Our holding is a narrow one that terms of effectively setting off the coun-
should not be read expansively to sug- tercyclical buffer from Pillar 2 require-
gest that any failure on the part of a ments.”
financial adviser to prevent directors Mr Carney pointed to the results of
from breaching their duty of care gives the banks’ stress test as evidence that
rise to a claim for aiding and abetting a UK lenders were “within sight” of what
breach of the duty of care.” the BoE deems the right amount of capi-
Rather, the RBC case may be an tal for the long term — a level set signifi-
anomaly because of the unusual finding cantly lower than global regulators had
of “fraud on the board”. suggested was necessary in the immedi-
Regardless, emboldened plaintiffs’ ate aftermath of the financial crisis.
lawyers are expected to ramp up their Additional reporting by Emma Dunkley
pursuit of aiding and abetting claims. www.ft.com/lombard
Public Notice
Contracts & Tenders
16
Energy
Bidders line up for electricity operator ITC
Iberdrola and Berkshire
Hathaway among those
eyeing US grid group
ED CROOKS, JAMES FONTANELLA-KHAN
AND ARASH MASSOUDI
National Grid of the UK, Iberdrola of
Spain and Warren Buffett’s Berkshire
Hathaway are among the companies
exploring possible bids for ITC Hold-
ings, the largest independent electricity
transmission operator in the US, people
familiar with the matter have said.
ITC announced on Monday evening
that its board had started a review of
strategic alternatives, which “may
Zurich investors look for ‘fresh wind’ after chief’s exit
Martin Senn’s departure
brings opportunity for change
after setbacks for Swiss group
RALPH ATKINS — ZURICH
Insurance is in the midst of global con-
solidation as low interest rates, pricing
pressure and regulatory change push
the sector into a wave of dealmaking.
In times like these insurers need under-
writing discipline and strong leadership
to thrive.
So it is not a great moment for Zurich
insurance to lose its chief executive fol-
lowing a failed deal and costly under-
writing setbacks in its general insurance
division.
Martin Senn’s departure yesterday
after six years at the top of Zurich was
arguably a mixed blessing, however.
On the one hand, it could create an
opportunity for the Swiss insurer. In
September, Zurich unexpectedly
announced it was dropping a £5.6bn bid
for RSA, the UK insurer. But yesterday
Tom de Swaan, chairman, said Zurich
remained determined to be a “consoli-
dator” rather than target if consolida-
tion continued.
Mergers and acquisition activity in
global insurance was capped in July by
the $28bn takeover by Ace of its New
York-listed rival Chubb.
Zurich has $3bn in excess capital for
either organic growth, acquisitions or to
return to shareholders. A decision on its
use would be announced with Zurich’s
annual results on February 11, Mr de
Swaan said. He had “high hopes” of
finding “in a relatively short period of
time” a replacement for Mr Senn.
“The good news is that in the wake of
recent M&A activity there should be a
good chance to bring a strong candidate
on board with relatively short notice,”
analysts from Bernstein wrote in a note.
But Mr Senn’s departure also high-
lighted the difficulties Zurich faces in
boosting its lacklustre performance.
Mr Senn’s future was thrown into
doubt by September’s U-turn on the
RSA bid. He blamed the decision on a
more urgent need to focus on Zurich’s
own problems in general insurance,
which had incurred $275m in losses as a
result of explosions in the Port of Tian-
jin, China. At the same time, Zurich
Technology
Samsung replaces mobile unit head in sales push
SIMON MUNDY — SEOUL
Samsung Electronics has replaced the
head of its mobile business for the first
time in six years, as it seeks to reverse a
recent trend of falling smartphone
sales.
Shin Jong-kyun, who fostered the suc-
cessful Galaxy smartphone series as
Samsung’s head of mobile communica-
tions from 2009, will hand the mantle to
Koh Dong-jin, head of mobile research
and development, the company said
yesterday.
The switch came as the company
announced its traditional early Decem-
ber slate of promotions and moves.
result in the company’s possible sale or
pursuit of other initiatives to maximise
value for shareholders”.
The company is working with advis-
ers at Morgan Stanley and Barclays,
some of the people said. Both banks
declined to comment.
Shares in ITC, which has an enterprise
value of about $9.5bn, have fallen from a
peak of $44 in January to below $34 at
the end of last week, on concerns about
its growth prospects.
Infrastructure investors including
Macquarie, Global Infrastructure Part-
ners and Borealis are also thinking
about taking part in what is expected to
be a competitive auction, as is NextEra
Energy, the owner of Florida Power &
Insurance. Succession test
Bright spot: Zurich has $3bn that
could fund growth or deals
Alessandro Della Bella/Bloomberg
Zurich Insurance Group
Share price (SFr)
350
300
250
200
150
2009 11 13 15
Source: Thomson Reuters Datastream
Mr Shin, 59, will retain his formal
position as one of three co-chief execu-
tives, to focus on long-term strategy, but
the company said he would “step back
from day-to-day operations”.
The move follows speculation —
beginning in the lead-up to last year’s
reshuffle — that Mr Shin would be side-
lined in response to setbacks in the
mobile division.
Samsung remains the world’s leading
smartphone producer by sales but its
handset profits have fallen since the first
half of last year, as it lost share to Chi-
nese peers at the low end of the market,
and a resurgent Apple at the high end.
“In the context of Samsung’s culture,
★ FINANCIAL TIMES
COMPANIES
Light, according to one person with
knowledge of the process.
Bloomberg reported on Monday that
Michigan-based ITC was exploring a
possible sale, after which the group’s
shares closed up 9 per cent at $36.86.
Later, the company said its board “has
not made a decision to enter into any
transaction at this time, and there are
no assurances that the consideration of
strategic alternatives will result in any
transaction”.
Bids for ITC will represent bets on
the future of investment in the US
power grid.
Its business involves operating regu-
lated high-voltage transmission lines,
and the company needs to invest in
warned third-quarter results would be
hit by about $300m in provisions
related to US auto-insurance policies.
In recent weeks, Mr Senn had dodged
questions about his future but yesterday
he said the “time was right to make way
for a new leadership”. This year’s set-
backs were “personally disappointing”,
but Zurich was preparing a new strategy
plan to start from the end of 2016 and
needed a chief executive able to make a
“five-year commitment”.
Mr de Swann, who has taken over as
interim chief, said Mr Senn’s departure
would have no impact on Zurich’s stra-
tegic focus or financial targets.
The Zurich chairman said he
expected an outside candidate to suc-
ceed Mr Senn. The company was
searching for an “entrepreneurial
leader” with chief executive experience
somebody has to be held responsible,”
said Daniel Kim, an analyst at Mac-
quarie.
“I expected him to resign last year,
actually, but he stayed another year and
the handset division is still not showing
any sign of improvement.”
Mr Shin’s retention as co-chief execu-
tive seemed a “mark of respect for his
contribution in the past”, Mr Kim
added, calling his move “one step
towards retirement”.
Analysts do not expect a significant
new driver of sales for the smartphone
division until Samsung’s widely antici-
pated launch of phones with flexible
screens, likely to be planned for 2017.
more assets to increase its earnings.
Overall investment in US electric-
ity transmission is set to remain flat
for the next three years, however, at
about $20bn per year according to the
Edison Electric Institute, the industry
association.
After that, though, some analysts
expect a pick-up in spending, as Presi-
dent Barack Obama’s Clean Power
Plan, to cut carbon dioxide emissions
from power generation, takes effect.
It is intended to make electricity net-
works invest in more transmission, to
connect up new sources of renewable
energy including wind farms and solar
fields.
Both National Grid and Iberdrola are
and deep knowledge of the insurance
industry, he told journalists.
“What investors want is a detailed
insurance expert,” said Andy Hughes,
an analyst at Macquarie. “The problem
has been profitability in some of the
property and casualty lines so they want
someone who can tackle this.”
An outsider would bring “a fresh wind
and new talent,” added Stefan Schür-
mann, an analyst at Vontobel in Zurich.
Since September, a review of Zurich’s
general insurance division has been
undertaken by Kristof Terryn, its new
boss, who had been seen as a possible
successor to Mr Senn. Mr de Swaan will
look to him to help with a turnround.
Also tipped by analysts as a possible
successor had been George Quinn, who
joined Zurich as finance director in May
2014 from Swiss Re.
Oil & gas
Saudi Aramco in drive to buy locally
DAVID SHEPPARD AND ANJLI RAVAL
LONDON
Saudi Arabia’s oil company yesterday
unveiled plans to ramp up the amount
of goods and services it buys locally, in
a move aimed at persuading foreign
suppliers to help boost the kingdom’s
manufacturing.
Amin Nasser, Saudi Aramco chief exec-
utive, said the company would spend
$300bn over the next decade on goods
and services used in the production of
oil and gas, with the majority of these
funds aimed at locally made equipment.
The state-owned company hopes to
encourage suppliers — from foreign
groups including Schlumberger and Sie-
mens, to local companies — to manufac-
ture more equipment in Saudi Arabia.
Mr Nasser said a commitment to use
more local workers and resources,
would be “required” for all companies
working with Saudi Aramco, which
pumps almost one in every nine barrels
of oil globally.
“For too long, local content has not
been a formal requirement of doing
business with Saudi Aramco,” he added.
“Current local content levels are simply
unsustainable for our country, our soci-
ety, and our citizens.”
already involved in corporate activity
that will occupy management time.
However, their deals could also give
them the firepower to buy ITC.
National Grid, which operates gas
pipelines and power grids in Britain
and the US, said in November that it
was putting its UK gas distribution busi-
ness up for sale, to “rebalance” its port-
folio “to deliver a higher asset growth
profile”.
Iberdrola is still working to complete
its $4.6bn acquisition of Connecticut-
based utility UIL, although the end of
that process could be close as it has set a
target of securing the last regulatory
approval it needs, from the state of Mas-
sachusetts, by December 18.
Mr Senn, 58, started his professional
life under Switzerland’s apprentice sys-
tem — a career start he shares with Ser-
gio Ermotti, chief executive of UBS.
He joined Zurich from Swiss Life in
2006 as chief investment officer. During
the post-2007 financial crisis, he won
plaudits for his cautious handling of
Zurich’s $200bn investment portfolio.
But his time as chief executive was
punctuated by high-level departures.
In 2013, Josef Ackermann, the former
head of Deutsche Bank, resigned after
barely a year as Zurich’s chairman after
coming under pressure to take some
responsibility for the apparent suicide
of the group’s chief financial officer.
Zurich reported a 79 per cent fall in
net profits to $207m in the three months
to the end of September.
See Lex
Saudi Aramco is seeking to use its
spending power to boost the pool of
skilled workers in Saudi Arabia’s energy
sector and related industries.
Creating jobs and diversifying Saudi
Arabia’s economy has become a more
urgent task for the kingdom since the
‘We want this thriving
sector to deliver half a
million well-paid jobs
for talented Saudis’
Saudi Arabia has raised its oil output
to record levels for much of this year
Wednesday 2 December 2015
Travel & leisure
UK football
scores a first
as Chinese
investors take
City stake
JOSH NOBLE — LONDON
Chinese investors have made their first
foray into English football, snapping
up a 13 per cent stake in the parent of
Premier League leaders Manchester
City just weeks after President Xi Jin-
ping visited the club’s academy.
Football, both at home and abroad, has
become a target for Chinese conglomer-
ates and their wealthy founders, which
some analysts see as an effort to curry
favour with Beijing.
A consortium led by private equity
groups China Media Capital and Citic
Capital will pay $400m for the stake in
City Football Group, which also owns
Melbourne City and New York City foot-
ball clubs, and is a minority shareholder
in Japan’s Yokohama F. Marinos.
The agreement values CFG at $3bn,
the company said yesterday, roughly
the same as the market capitalisation
of New York-listed local rivals Manches-
ter United. Deloitte rates Man City as
the sixth-richest club in the world by
revenue.
“Football is now at a fascinating and
critical stage of development in China,”
said Li Ruigang, CMC chairman.
“We see unprecedented growth
opportunities in both its development
as an industry, being China’s most
watched sport, and its inspirational role
bringing people of all ages together with
a shared passion.”
Mr Li, a former official in the Shang-
hai government, recently made head-
lines when he agreed to pay Rmb8bn
($1.3bn) for five-year broadcasting
rights for the Chinese Super League.
Those same rights had previously cost
just Rmb50m a year.
“He wants to do for Chinese football
what Rupert Murdoch and Sky TV did
for the Premier League,” said Peter
Schloss, chief executive of CastleHill
Partners, a sports and media advisory
firm in Beijing. Investor interest in the
Premier League has been rising as a
sharp jump in revenues and stricter cost
controls pull more teams into the black.
Man City, favourites to win the Pre-
mier League, have returned to profit for
the first time since being bought for
$360m by Sheikh Mansour bin Zayed al
Nahyan of Abu Dhabi in 2008.
The club quickly acquired a reputa-
tion for big spending, snatching Brazil-
ian forward Robinho for what was then
a British record of £32.5m on the day of
the takeover. Man City reportedly
offered to pay €150m for Lionel Messi of
Barcelona two months later. But Man
City’s financial muscle was undercut by
the introduction in 2011 of the Financial
Fair Play curbs on how much clubs can
spend as a proportion of income.
Khaldoon Al Mubarak, CFG chair-
man, said the company had worked for
months to secure the deal to help it tap
into the “incredible potential that exists
in China”.
Mr Xi included a trip to Man City’s
academy during his official visit to the
UK in October. “President Xi is a very
avid football fan. Businesses and
tycoons are going to follow his lead,”
said Mr Schloss. “We are going to see
more deals.”
www.ft.com/lombard
collapse in oil prices last year. Brent
crude oil, the international oil bench-
mark, is on course to average less than
$55 a barrel this year compared with
$110 as recently as two years ago.
“We want this thriving [energy] sec-
tor to deliver half a million well-paid
direct and indirect jobs for talented Sau-
dis over the long-term,” Mr Nasser said
in a speech in the city of Dammam in the
kingdom’s oil-rich eastern province.
“Companies that build a deep and
lasting relationship with the kingdom
by setting up shop here and investing in
workforce development will capture the
major share of Saudi Aramco’s spend on
materials and services.”
At Opec’s twice yearly meeting on Fri-
day, Saudi Arabia is expected to defend
the cartel’s decision to open the taps to
try to pressure higher-cost oil produc-
ers. Saudi Arabia has raised its oil out-
put to record levels above 10m barrels a
day for much of this year.
Brent is now trading close to $45 a
barrel.
Mr Nasser, who was appointed Saudi
Aramco chief executive earlier this
year, said Saudi Arabia was seeking to
emulate other oil producers, such as
Norway, by developing effective domes-
tic suppliers.
Wednesday 2 December 2015 ★ FINANCIAL TIMES 17

COMPANIES

VTech hack shows why parents Nissan considers lifting its Automobiles

Renault holding above 25%

have to stay ahead of the game
Vulnerability of children using internet-enabled toys is highlighted by data theft
HANNAH KUCHLER — SAN FRANCISCO
A mother poses with her child on
her lap, a kid standing in a kitchen
grins into the camera and another sends
“I love you” messages to her “mommy
and daddy”.
These private family moments
appear to be in the hands of a hacker,
after VTech, the Hong Kong-based toy-
maker, was attacked by a cyber criminal
last month, highlighting how the rise of
connected toys has made children vul-
nerable in ways their parents may not
have imagined.
VTech, which specialises in educa-
tional toys, has confirmed that the data
of 5m parents and their children were
stolen. But the company would not say
whether the hacker had obtained the
photos, audio files and chat messages, as
it continues to investigate.
The hacker has not been identified
but Motherboard, the technology news
site that originally reported the attack,
published redacted images and other
files that it said the attacker had passed
to it. The site added that the hacker
said he had downloaded 190GB worth
of photos.
According to Anne Collier, founder
and president of NetFamilyNews.org,
one problem is that parents are often
unaware of how many ways their chil-
dren can get online.
She says that one Christmas many
bought iPod Touches for their kids,
thinking of them as music players,
when in fact they were more like smart-
phones. Now, many are similarly igno-
rant of how their kids can chat online
using gaming consoles such as Sony’s
PlayStation or Microsoft’s Xbox.
“Your child is online in effect even
with the most simple devices aimed at
the youngest users,” she adds.
All the major toymakers are rushing
to connect toys to the internet, enhanc-
ing their features and hoping to retain
children who might otherwise be dis-
tracted by online games on devices such
as smartphones and tablets.
VTech sells a “smart watch” that takes
photos and video, and a Kidizoom
action camera, with users being encour-
aged to post footage on social media.
Lego, Walt Disney and Activision are
among manufacturers that have created
internet-enabled toys, in a market that
Juniper Research estimates will be
worth $2.8bn this year.
Earlier this year, Mattel faced criti-
cism for “Hello Barbie”, a talking and lis-
tening version of the blonde doll that
would ask questions of children and
store their answers.
Dubbed the “eavesdropping Barbie”
by the Campaign for a Commercial Free
Childhood, privacy activists worried the
data would be used by advertisers.
Mattel did not respond to requests
for comment.
Most cyber attackers target children
not to lure them into inappropriate situ-
ations, but to steal their identities
using their names, birth dates and mail-
ing addresses.
In the US, the Federal Trade Commis-
sion has told parents to check whether
their child has a credit report if they
believe their data could have been sto-
len in a mass hack (for example, the
recent attacks on healthcare insurers).
“An identity thief could use your
child’s social security number to get a
job or a tax refund, open bank and credit
card accounts, apply for a loan or rent a
place to live. And what’s worse, it might
Toymaker be years before you or your child real-
VTech has ises there’s a problem,” the FTC warned.
confirmed that Ms Collier said hackers were tempted
the data of 5m by children’s “squeaky clean credit
parents and records” and some people have discov-
their children ered their identity has been stolen only
were stolen in when they turn 18.
the cyber attack Toymakers are regulated in the US
last month by the Children’s Online Privacy Protec-
Gareth Cattermole/Getty
tion Act (COPPA), which is seen as the
standard worldwide. However, it
focuses on what data can be collected
from children and restricting how it can
be used by marketers, rather than
securing it from hackers.
Shai Samet, founder and president of
kidSAFE, a programme that certifies
the safety practices of websites and
technologies, says there are holes in the
law. For example, it does not cover chil-
dren’s data entered by parents and it
applies only to children under 13.
“From the naked eye, from a
bystander or lay person, you would
think, ‘oh gosh, this must be in violation
of all sorts of laws’,” he says, adding that
it is not clear whether VTech may have
violated COPPA. “The emphasis tends
to be squarely on privacy and usage of
data as opposed to pure protection,
security of data, preventing it from get-
ting into unauthorised hands.”
Brian Laing, vice-president at cyber
security company Lastline, says the
VTech hack did not appear to be partic-
ularly sophisticated.
“The attack itself isn’t advanced
malware, more of a traditional attack,
at least from the information I’ve seen,”
he says.
COPPA does not mandate the use of
any particular technologies to defend
against attack, says Chris Eng, vice-
president of security research at Vera-
code, a security start-up. Instead, it sim-
ply advises that companies must have
“reasonable” procedures.
“There is no consensus on what is
reasonable, and I suspect that many
‘An identity manufacturers would be able to talk
their way around lax security practices,”
thief could he says.
use your For parents who struggle with their
own security online, it can be tough to
child’s know how to protect a child’s identity,
social says Paige Hanson, senior education
programmes manager at LifeLock, an
security identity theft protection company.
number to “The biggest thing you can do is put
a freeze on your child’s credit, which
get a job most credit bureaux will do, sometimes
or a tax for a small fee,” she says.
“It is a proactive, real approach to pro-
refund’ tecting your child’s identity.”
KANA INAGAKI — TOKYO
MICHAEL STOTHARD — PARIS
Nissan is eyeing raising its stake in
Renault from 15 per cent to at least 25
per cent to try and nullify the French
government’s growing influence over
the industrial alliance between the two
carmakers.
A bigger stake is just one of various
options the Japanese group is consider-
ing on the back of an escalating stand-
off with Paris, which last spring bought
additional shares in Renault to push
through arrangements that would give
long-term investors double voting
rights at the French company.
No decision was taken at an extraordi-
nary board meeting Nissan held on
Monday to discuss the 16-year alliance,
according to people familiar with the
matter.
Executives at Nissan, which was close
to bankruptcy in 1999 but is now the
bigger partner in the alliance, think it is
unfair that Renault wields effective con-
trol of the Japanese group through a 43.4
per cent stake. Nissan's 15 per cent stake
in Renault carries no voting rights.
When the French double voting
arrangements take effect at Renault
next April, Paris is expected hold about
30 per cent of the voting rights in the
French company.
Paris’s move last April to increase its
stake in the carmaker to almost 20 per
cent exposed tensions in the alliance
between Renault and Nissan.
Under Japanese law, increasing Nis-
san's stake in Renault to at least 25 per
cent would remove the French com-
pany’s voting rights in the Japanese
Automobiles
VW plans India’s largest car
recall over ‘defeat devices’
JAMES CRABTREE — MUMBAI
RICHARD MILNE — OSLO
Volkswagen said it would recall
324,000 cars in India to remove devices
linked to emissions cheating scandals
in other countries, marking the largest
recall in the country’s automotive his-
tory and a further blow for the embat-
tled German carmaker.
The move, which VW described as vol-
untary yesterday, is the latest after-
shock from the group’s wider global
scandal, when it admitted rigging emis-
sions tests in the US, triggering investi-
gations by regulators around the world.
South Korea fined the company $12m
last week for tampering with tests, and
ordered a recall of more than 125,000
diesel vehicles.
In India, where emissions rules are
generally less stringent than in
advanced economies, VW has not been
found guilty of any testing irregularities
linked to the broader scandal.
However, the world’s second largest
car group by sales agreed to the recall to
remove so-called “defeat devices” that
had been used to dodge environmental
standards in other countries. These
could in theory have been used in India.
VW’s recall is easily the largest ever in
India, surpassing the 220,000 cars
recalled in September by Honda, to fix
an airbag problem.
The German company said it was
likely to recall 198,500 VW cars, as well
as 88,700 from Skoda and 36,500 from
Audi, all of which were fitted with vari-
ants of the same type of diesel engine.
group. Nissan hopes the move will stop
the French government from having
undue influence over its operations.
Executives at Nissan expect the
industrial alliance with Renault to
remain intact regardless of any change
to the shareholder structure, because
the two carmakers have cut costs by
sharing vehicle platforms and suppliers.
They also jointly work on research and
development and manufacturing.
Renault, whose board is due to meet
next Friday and discuss the alliance
with Nissan, declined to comment. One
person close to Renault said that any
move to take Nissan’s stake in the
French company above 25 per cent
would “clearly be destabilising”, and
questioned whether Emmanuel
Macron, the French economy minister,
would let this happen.
“What I want is that this alliance
[between Renault and Nissan] as it is
continues,” said Manuel Valls, French
prime minister, last month.
Yoshihide Suga, the Japanese govern-
ment’s chief cabinet secretary, also
urged Nissan and Renault to find a solu-
tion through dialogue to maintain the
current partnership. “The Japanese gov-
ernment will provide support if
needed,” Mr Suga said yesterday.
Questions remain about how Nissan
would seek to increase its stake, includ-
ing how this would be financed. Based
on Renault’s market valuation, it could
cost Nissan €2.8bn to raise its Renault
stake by at least 10 percentage points.
Worries about this cost sent Nissan’s
shares down almost 2 per cent, to close
at Y1,289 in Tokyo. Renault’s shares
were down 0.6 per cent at €94.91.
VW has denied wrongdoing, but the
process is nonetheless likely to under-
mine attempts to regain ground in a
market most projections suggest will
become the third largest after China and
the US by the end of this decade.
The company has grown strongly in
China, becoming the country’s leading
carmaker by volume. But its record in
India has been lacklustre, with mid-
market models that are generally too
expensive for consumers, and a market
share that fell to just 2 per cent last year.
The company said it remained “fully
committed to the Indian market”.
VW has problems with up to 12m cars
worldwide being hit by three separate
scandals: two involving defeat devices in
diesel engines, and the third relating to
carbon dioxide levels in European cars.
Audi’s board will meet this week to
discuss the scandal with the pressure
increasing on Rupert Stadler, its chief
executive and a close confidant of the
controlling family shareholders of VW.
Volkswagen says it will recall
324,000 diesel vehicles in India

Industrials Personal & household goods

Linde warns on profits as price squeeze looms in US healthcare Japanese artists make a sharp
JAMES SHOTTER — FRANKFURT
Shares in Linde plunged 14 per cent
yesterday after the German industrial
and medical gases company said it
would miss its profit targets.
Last autumn, the group said that it was
aiming to achieve an operating profit of
between €4.5bn and €4.7bn for 2017, as
well as a return on capital employed of
between 11 per cent and 12 per cent.
However, in a statement released
after the market closed on Monday,
Linde said the targets were “not achiev-
able” and it expected to make an operat-
ing profit of €4.2bn-€4.5bn, with a
return on capital employed of between
9 per cent and 10 per cent.
It blamed the revision on changes
in macroeconomic conditions since it
first drew up the profit targets in 2014 —
pointing to a “significant” decline in the
“growth rates of industrial production”,
and adding the plunging oil price had hit
orders in its engineering division.
Linde added it had underestimated
the impact of price cuts in the US health-
point on pencil production
care system that come into force in 2016
and 2017, as the amounts paid for cer-
tain products though Medicare — the
publicly funded health insurance pro-
gramme for the elderly — is reduced.
After acquiring Lincare Holdings, a
US provider of oxygen and medical
equipment for patients with respiratory
problems, for $4.6bn in 2012, Linde has
Pivotal: Germany’s Linde is seen as an industrial bellwether — Krisztian Bocsi/Bloomberg
become one of the biggest players in the
US homecare market.
Wolfgang Büchele, chief executive,
said that Linde would “continue our
stringent cost control and focus on
growth in these challenging market
environments”. He said: “We are confi-
dent also by continuing with smaller
bolt-on acquisitions that we are able, at
the latest in 2017, to get back to a more
normalised growth path,” he added on a
call with journalists yesterday.
Analysts at Morgan Stanley said the
new forecasts “implied little or no
growth” in Linde’s earnings before inter-
est, tax, depreciation and amortisation
“over the next couple of years”.
They said the move by Linde — seen as
an industrial bellwether — could have
implications for competitors.
“It may also indicate other gas players
could face further downgrades if they
too are suffering similar growth and
return challenges, although the issues
around US healthcare are somewhat
unique to Linde,” the analysts wrote.
Monday’s profit warning was the sec-
ond time this year that Mr Büchele, who
took over as chief executive from Wolf-
gang Reitzle in May last year, has had to
adjust the German company’s targets.
In July, Linde cut its revenue fore-
casts, which it said was due to “persist-
ent weak demand in the plant construc-
tion sector”.
See Lex
LEO LEWIS — TOKYO
A rebellion of cartoonists and panic-
buying at the nation’s art supply shops
has forced one of Japan’s biggest sta-
tionery producers into a humiliating
U-turn on coloured pencil strategy.
In an apologetic reversal aimed at
becalming the artists’ angst, Mitsubishi
Pencil said yesterday that it would keep
producing orange, blue and yellow-
green — a trio of colours essential to
Japan’s perfectionist, multibillion-
dollar animation industry.
The pencil crisis highlights the pres-
sures faced by corporate Japan to keep
churning out products that no longer
make economic sense, either due to a
shrinking domestic population or tech-
nological advances, out of a sense of
duty and brand preservation.
Until a few weeks ago, customers and
investors flocked to Mitsubishi Pencil.
Led by strong global sales of high-tech
pens, revenues and profits marched
higher and the company’s shares have
quadrupled since 2012, giving it a mar-
ket capitalisation of $1.5bn.
But in mid-November, a three-line
statement on its website announced
that it was discontinuing an entire range
of coloured pencils, except for red, due
to weak demand.
Staff at two of Japan’s biggest art sup-
ply shops, Sekaido and Ito-ya, said that
they had experienced a sudden surge of
artists demanding the pencils and buy-
ing up stocks. Blue and orange, said
Sekaido, were in especially hot demand
after the artists had descended to stake
their claims.
On Monday night, as the colour pencil
crisis became more evident, Mitsubishi
reversed course. Within 24 hours, the
company said that, while it would ter-
minate production of all other colours,
the three most popular ones would con-
tinue “as demand can be expected”.
18 ★ FINANCIAL TIMES Wednesday 2 December 2015

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.35% -0.329% -0.29%

0.57% 0.46% 0.58% 0.62% 1.34% 1.75% 0.78% 0.473% 0.066% 0.427% 0.33%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Nov 02 - Dec 01 Index All World Nov 02 - Dec 01 Index All World Nov 02 - Dec 01 Index All World Nov 02 - Dec 01 Index All World Nov 02 - Dec 01 Index All World Nov 02 - Dec 01 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,092.21 13,623.01 13,604.60 6,356.09 11,261.24 20,012.40 2,035.24
2,079.36 6,361.09 2,023.93
10,950.67 18,935.71

Day 0.57% Month 0.57% Year 1.14% Day 1.00% Month 0.58% Year -6.96% Day 0.62% Month 0.57% Year -3.89% Day -1.06% Month 2.99% Year NaN% Day 1.34% Month 4.87% Year 14.62% Day 1.60% Month -0.27% Year 2.18%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
1,512.68
5,132.04 10,418.20 10,379.20
44,634.81 1,488.42 2,998.35
5,053.75 22,370.04 22,381.35
43,535.60 2,870.26
Day 0.46% Month 1.54% Year 7.10% Day 0.27% Month -2.24% Year 0.35% Day -0.35% Month 1.91% Year 9.20% Day -0.07% Month 0.18% Year -3.63% Day 1.75% Month -1.14% Year -6.70% Day 0.50% Month -4.27% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
17,822.38 22,482.39 22,581.33 26,838.14
17,663.54 47,710.10 4,914.53
4,916.21 3,456.31 26,169.41
3,325.08
45,033.59
Day 0.58% Month 0.82% Year -0.11% Day -0.19% Month -1.86% Year -13.89% Day -0.87% Month 0.34% Year 11.94% Day -0.60% Month 0.62% Year 14.70% Day 0.32% Month 2.18% Year 28.83% Day 0.09% Month -1.83% Year -8.80%

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 12911.69 12972.14 Cyprus CSE M&P Gen 69.20 70.43 Italy FTSE Italia All-Share 24347.14 24460.17 Philippines Manila Comp 7060.60 6927.07 Taiwan Weighted Pr 8463.30 8320.61 Cross-Border DJ Global Titans ($) 239.46 237.75
Australia All Ordinaries 5312.60 5218.20 Czech Republic
PX 969.08 974.40 FTSE Italia Mid Cap 35047.85 34848.53 Poland Wig 47754.60 47915.91 Thailand Bangkok SET 1357.01 1359.70 Euro Stoxx 50 (Eur) 3482.35 3506.45
S&P/ASX 200 5266.10 5166.50 Denmark OMXC Copenahgen 20 1016.61 1015.05 FTSE MIB 22581.33 22717.98 Portugal PSI 20 5350.01 5350.36 Turkey BIST 100 75638.43 74997.64 Euronext 100 ID 955.47 961.87
S&P/ASX 200 Res 2526.20 2468.50 Egypt EGX 30 6356.65 6477.73 Japan 2nd Section 4801.01 4786.43 PSI General 2486.58 2487.89 UAE Abu Dhabi General Index 4236.39 4236.39 FTSE 4Good Global ($) 5539.53 5496.90
Austria ATX 2501.60 2488.62 Estonia OMX Tallinn 894.08 890.90 Nikkei 225 20012.40 19747.47 Romania BET Index 7018.11 7152.15 UK FT 30 2910.80 2912.10 FTSE All World 270.82 268.73
Belgium BEL 20 3744.10 3760.89 Finland OMX Helsinki General 8823.43 8812.47 S&P Topix 150 1327.50 1307.01 Russia Micex Index 1772.97 1771.05 FTSE 100 6395.65 6356.09 FTSE E300 1512.68 1517.98
BEL Mid 5946.35 5935.38 France CAC 40 4914.53 4957.60 Topix 1601.95 1580.25 RTX 839.14 847.10 FTSE 4Good UK 5813.86 5773.80 FTSE Eurotop 100 3005.49 3018.10
Brazil Bovespa 45033.59 45120.36 SBF 120 3865.93 3893.28 Jordan Amman SE 1994.13 1993.72 Saudi-Arabia TADAWUL All Share Index 7293.79 7239.93 FTSE All Share 3513.19 3492.13 FTSE Global 100 ($) 1341.19 1330.67
Canada S&P/TSX 60 801.19 791.80 Germany M-DAX 21437.82 21593.38 Kenya NSE 20 3978.17 4016.18 Singapore FTSE Straits Times 2870.26 2855.94 FTSE techMARK 100 3987.79 3977.93 FTSE Gold Min ($) 866.55 849.51
S&P/TSX Comp 13604.60 13469.83 TecDAX 1843.88 1858.87 Kuwait KSX Market Index 5803.34 5802.36 Slovakia SAX 303.31 303.31 USA DJ Composite 6163.16 6139.09 FTSE Latibex Top (Eur) 2540.70 2571.20
S&P/TSX Met & Min 351.33 350.21 XETRA Dax 11261.24 11382.23 Latvia OMX Riga 592.35 591.88 Slovenia SBI TOP 693.72 703.76 DJ Industrial 17822.38 17719.92 FTSE Multinationals ($) 1517.81 1522.20
Chile IGPA Gen 17953.87 18027.32 Greece Athens Gen 639.33 634.82 Lithuania OMX Vilnius 483.82 484.51 South Africa FTSE/JSE All Share 51535.82 51607.83 DJ Transport 8114.52 8101.45 FTSE World ($) 480.40 476.82
China FTSE A200 9153.54 9089.45 FTSE/ASE 20 189.46 187.72 Luxembourg LuxX 1458.13 1461.49 FTSE/JSE Res 20 26413.43 25889.05 DJ Utilities 563.87 563.13 FTSEurofirst 100 (Eur) 4300.53 4319.71
FTSE B35 10914.85 10818.32 Hong Kong Hang Seng 22381.35 21996.42 Malaysia FTSE Bursa KLCI 1682.37 1672.16 FTSE/JSE Top 40 46295.25 46329.56 Nasdaq 100 4697.42 4664.51 FTSEurofirst 80 (Eur) 4669.03 4708.20
Shanghai A 3618.81 3607.39 HS China Enterprise 9947.94 9790.64 Mexico IPC 43535.60 43418.55 South Korea Kospi 2023.93 1991.97 Nasdaq Cmp 5132.04 5108.67 MSCI ACWI Fr ($) 407.20 409.05
Shanghai B 382.35 381.26 HSCC Red Chip 4171.61 4050.08 Morocco MASI 9108.93 9122.70 Kospi 200 248.70 244.24 NYSE Comp 10467.14 10409.58 MSCI All World ($) 1694.40 1700.29
Shanghai Comp 3456.31 3445.40 Hungary Bux 23846.61 23768.60 Netherlands AEX 467.32 469.52 Spain IBEX 35 10379.20 10386.90 S&P 500 2092.21 2080.41 MSCI Europe (Eur) 1469.25 1465.88
Shenzhen A 2300.07 2305.80 India BSE Sensex 26169.41 26145.67 AEX All Share 716.08 718.59 Sri Lanka CSE All Share 6895.19 6909.15 Wilshire 5000 21753.58 21658.55 MSCI Pacific ($) 2296.07 2319.00
Shenzhen B 1214.56 1199.85 S&P CNX 500 6712.50 6686.10 New Zealand NZX 50 6150.68 6100.15 Sweden OMX Stockholm 30 1529.05 1536.05 Venezuela IBC 12954.31 12955.00 S&P Euro (Eur) 1546.27 1557.72
Colombia COLCAP 1114.36 1092.95 Indonesia Jakarta Comp 4557.67 4446.46 Nigeria SE All Share 27385.69 27617.45 OMX Stockholm AS 525.68 526.60 Vietnam VNI 570.41 573.20 S&P Europe 350 (Eur) 1552.29 1558.19
Croatia CROBEX 1680.19 1688.66 Ireland ISEQ Overall 6851.01 6838.48 Norway Oslo All Share 672.53 669.66 Switzerland SMI Index 8993.24 8993.10 S&P Global 1200 ($) 1882.39 1869.93
Israel Tel Aviv 100 13.44 13.46 Pakistan KSE 100 33199.86 33199.86 Stoxx 50 (Eur) 3276.14 3287.98
(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 Dec 01 %Chg %Chg Dec 01 %Chg %Chg Dec 01 %Chg %Chg Dec 01 %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 14.3 118.07 -0.23 Lloyds Banking 164.3 74.71 2.21 Linde Ag O.n. 722.9 165.25 0.00 Toyota Motor 605.1 7762.00 105.00 Taylor Wimpey 196.50 10.3 42.5 Petra Diamonds 72.25 25.3 -62.8 Severfield 67.75 12.0 -0.7 Travel & Leisure 8772.19 5.7 8.8
Amazon.com 11.8 675.51 10.71 Barclays 160.6 233.50 6.50 Volkswagen Ag Vzo O.n. 524.1 131.55 0.00 Mitsubishi Ufj Fin,. 494.6 804.70 14.70 Persimmon 1926.00 8.9 23.0 Thomas Cook 119.90 21.9 -6.2 Tyman 270.00 11.9 -14.9 Household Goods 16201.24 4.5 26.6
Hospira 11.8 89.95 -0.01 Hsbc Holdings 124.5 539.00 9.35 Telefonica 491.7 11.58 -0.09 Nissan Motor Co., 356.2 1289.00 -25.50 Barratt Developments 606.50 8.4 28.8 Ophir Energy 99.65 17.8 -29.6 Lms Capital 78.25 9.8 0.6 Technology Hardware & Equip. 1373.24 4.4 15.3
Facebook Class A 11.3 106.18 1.94 Bhp Billiton 97.7 812.70 9.82 Novartis N 391.5 80.58 0.00 Softbank . 351.2 6518.00 -19.00 Compass 1169.00 8.3 6.2 Rpc 771.00 13.1 54.9 Hss Hire 52.00 9.6 - Support Services 7006.35 4.1 8.8
Microsoft 9.3 54.82 0.47 Vodafone 97.2 222.00 1.60 Cs N 342.8 20.27 0.00 Fast Retailing Co., 307.5 49890.00 110.00 Sports Direct Int 736.50 8.2 3.6 Serco 116.20 12.3 -28.2 Tt Electronics 153.50 8.9 48.3 Construction & Materials 5139.19 3.9 24.7
Allergan 8.7 318.21 4.32 British American Tobacco 96.6 3886.50 2.99 Daimler Ag Na O.n. 341.6 84.73 0.00 Mizuho Fin,. 300.1 252.60 4.10 Whitbread 4655.00 8.1 -2.4 Ao World 160.00 11.4 -22.1 Fisher (james) & Sons 1021.00 8.6 -14.8 General Retailers 3170.21 3.8 6.5
General Electric 7.6 29.95 0.01 Glaxosmithkline 95.0 1351.00 -5.02 Roche Gs 321.6 252.41 0.00 Fanuc 275.5 22420.00 500.00 Berkeley Holdings (the) 3280.00 7.9 32.3 Sig 139.00 10.7 -20.3 De La Rue 461.75 8.2 -11.3 Media 7428.58 3.8 13.6
Pfizer 7.6 33.44 0.67 Rio Tinto 90.2 2214.50 10.93 Total 301.6 46.79 -0.21 Sumitomo Mitsui Fin,. 249.8 4770.00 73.00 G4s 232.00 7.8 -16.7 Cranswick 1800.00 10.6 30.0 Mothercare 229.00 8.0 30.9 Real Estate Investment Trusts 3417.16 3.6 11.9
Baidu 7.1 213.10 -4.87 Bt 89.7 492.25 -6.91 Nestle N 291.0 69.95 0.00 Sony 239.7 3227.00 50.00 Dixons Carphone 487.40 7.4 5.4 Bovis Homes 966.00 10.1 9.2 Polypipe 341.00 7.9 37.5 Forestry & Paper 16663.29 3.4 47.4
Netflix 7.1 124.21 0.88 Prudential 87.2 1564.00 24.42 Air Liquide 281.3 109.75 -5.75 Hitachi, 225.6 746.10 19.50 Intertek 2866.00 7.4 22.6 Nmc Health 890.50 9.9 93.6 Chemring 199.00 7.7 -16.7 General Industrials 4465.20 3.3 14.6
Intercontinental Hotels 2600.00 6.5 0.2 Kaz Minerals 101.70 9.8 -60.6 Sdl 459.50 7.6 10.7 Banks 3891.45 3.2 -10.9
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Tui Ag 1139.00 6.4 6.4 Zoopla Property 238.80 9.7 22.1 Topps Tiles 162.00 7.4 43.2 Aerospace & Defense 4308.55 3.1 -9.2
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Consol Energy 8.37 0.49 6.22 Drax 253.10 28.49 12.66 B.popular 3.44 0.10 3.12 Yokogawa Electric 1543.00 73.00 4.97 Anglo American 406.30 -9.6 -66.0 Aldermore 233.10 -10.0 - Stock Spirits 103.50 -39.0 -52.9 Mining 8016.92 -3.3 -43.9
Eli Lilly & Co. 85.70 3.66 4.46 Petra Diamonds 72.25 8.10 12.63 Accor 41.08 1.14 2.84 Denki Kagaku Kogyo Kabushiki Kaisha 571.00 27.00 4.96 Bhp Billiton 812.70 -7.9 -41.9 Lancashire Holdings 685.00 -9.7 22.3 Lonmin 0.03 -31.6 - Oil & Gas Producers 6098.95 0.3 -14.5
Hewlett Packard Enterprise 15.43 0.57 3.84 Daejan Holdings 6500.00 355.00 5.78 Adp 109.30 2.10 1.96 Sumitomo Chemical , 737.00 31.00 4.39 Aberdeen Asset Management 314.80 -5.8 -27.1 Premier Oil 69.30 -6.3 -58.6 Kenmare Resources 0.54 -26.1 -83.3 Personal Goods 25346.86 0.3 2.9
Wynn Resorts Ltd 64.83 2.06 3.28 Tullow Oil 206.60 10.20 5.19 B. Sabadell 1.78 0.03 1.89 Tokyo Gas Co., 613.00 24.90 4.23 Rio Tinto 2214.50 -2.4 -26.0 Sophos 258.00 -5.1 - Tribal 66.00 -17.0 -58.9 Beverages 15672.03 0.8 10.8
Aetna 105.86 3.11 3.03 Acacia Mining 182.60 9.00 5.18 Caixabank 3.53 0.06 1.82 Nisshin Steel Holdings Co., 1403.00 56.00 4.16 National Grid 928.30 -1.3 1.1 Polymetal Int 528.00 -3.5 -8.3 Imagination 195.25 -11.0 -15.7 Pharmaceuticals & Biotech. 12640.29 0.8 -0.6
Bp 384.55 -0.7 -6.8 Hunting 333.30 -3.3 -37.3 Goodwin 2076.00 -7.3 -16.6 Industrial Transportation 2738.82 0.9 -3.4
Downs Downs Downs Downs
Royal Dutch Shell 1660.50 -0.4 -25.6 Jimmy Choo 140.00 -2.8 -20.0 Johnston Press 46.00 -7.3 -72.3 Gas Water & Multiutilities 5964.29 1.0 -2.6
Cummins 93.23 -7.14 -7.11 Sophos 258.00 -19.66 -6.93 Casino Guichard 51.35 -2.77 -5.12 Nisshinbo Holdings . 1404.00 -52.00 -3.57
Royal Dutch Shell 1644.00 -0.4 -23.7 Mitchells & Butlers 334.80 -2.8 -12.8 Ferrexpo 25.25 -6.5 -52.4 Equity Investment Instruments 7432.70 1.2 2.5
Csra 30.09 -1.42 -4.51 Cls Holdings 1780.00 -70.00 -3.78 Air Liquide 109.75 -5.75 -4.98 Showa Denko K.k. 158.00 -4.00 -2.47
Coca-cola Hbc Ag 1613.00 -0.3 31.2 Paragon Of Companies 386.40 -2.4 -6.9 Uk Mail 302.00 -5.6 -36.9 Tobacco 47110.44 1.4 15.9
Vimpelcom 3.44 -0.16 -4.44 Ssp 305.00 -9.32 -2.97 Cnp Assurances 12.63 -0.55 -4.17 Nissan Motor Co., 1289.00 -25.50 -1.94
Unilever 2825.00 -0.3 7.5 Ted Baker 3301.00 -2.3 48.6 Brammer 152.50 -5.3 -55.3 Mobile Telecommunications 5122.91 1.7 2.0
Paypal Holdings Common Stock 33.89 -1.37 -3.89 Sage 576.50 -14.53 -2.48 Schneider Electric 57.52 -2.48 -4.13 Sumitomo Osaka Cement Co., 465.00 -9.00 -1.90
Morrison (wm) Supermarkets 151.30 -0.2 -17.9 Gcp Infrastructure Investments 118.60 -2.3 -1.9 Charles Taylor 266.50 -4.9 9.2 Oil Equipment & Services 12980.28 1.7 -21.0
yte Genomics 110.45 -3.79 -3.32 Premier Oil 69.30 -1.75 -2.46 Carrefour 28.26 -0.92 -3.15 Nippon Sheet Glass , 104.00 -2.00 -1.89
Shire 4636.00 -0.1 2.4 Templeton Emerging Markets Investment Trust 422.00 -2.2 -23.7 Robert Walters 367.63 -4.8 17.1 Fixed Line Telecommunication 5562.58 1.9 21.8
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Dec 01 Currency Mid Change Mid Change Mid Change Dec 01 Currency Mid Change Mid Change Mid Change Dec 01 Currency Mid Change Mid Change Mid Change Dec 01 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 9.6828 -0.0009 10.2710 0.0436 14.5775 0.0006 Indonesia Indonesian Rupiah 13782.5000 -52.5000 14619.7762 8.0108 20749.6001 -76.2273 Poland Polish Zloty 4.0368 -0.0070 4.2820 0.0112 6.0774 -0.0096 ..Three Month 0.6643 -0.0001 0.7044 0.0030 - -
Australia Australian Dollar 1.3688 -0.0112 1.4520 -0.0056 2.0608 -0.0166 Israel Israeli Shekel 3.8723 0.0030 4.1075 0.0210 5.8298 0.0053 Romania Romanian Leu 4.2082 -0.0103 4.4638 0.0085 6.3355 -0.0146 ..One Year 0.6644 -0.0001 0.7037 0.0030 - -
Bahrain Bahrainin Dinar 0.3774 -0.0001 0.4003 0.0016 0.5681 -0.0001 Japan Japanese Yen 122.8750 -0.4050 130.3395 0.1380 184.9886 -0.5846 Russia Russian Ruble 66.5975 0.5500 70.6432 0.8875 100.2627 0.8415 United States United States Dollar - - 1.0607 0.0046 1.5055 0.0002
Bolivia Bolivian Boliviano 6.9100 - 7.3298 0.0318 10.4030 0.0014 ..One Month 122.8748 -0.4053 130.3395 0.1380 184.9884 -0.5850 Saudi Arabia Saudi Riyal 3.7535 - 3.9815 0.0173 5.6509 0.0008 ..One Month - - 1.0606 -0.4445 1.5055 0.0002
Brazil Brazilian Real 3.8437 -0.0752 4.0772 -0.0617 5.7867 -0.1123 ..Three Month 122.8747 -0.4056 130.3396 0.1381 184.9882 -0.5855 Singapore Singapore Dollar 1.4084 -0.0006 1.4939 0.0059 2.1203 -0.0006 ..Three Month - - 1.0605 -0.4445 1.5055 0.0002
Canada Canadian Dollar 1.3373 0.0056 1.4185 0.0121 2.0133 0.0088 ..One Year 122.8734 -0.4081 130.3396 0.1381 184.9884 -0.5869 South Africa South African Rand 14.4325 0.0125 15.3093 0.0797 21.7282 0.0218 ..One Year - - 1.0593 -0.4446 1.5057 0.0002
Chile Chilean Peso 703.9350 -6.9400 746.6985 -4.0884 1059.7760 -10.3032 Kenya Kenyan Shilling 102.2500 0.1000 108.4616 0.5764 153.9376 0.1714 South Korea South Korean Won 1157.9500 -0.1000 1228.2945 5.2262 1743.2968 0.0854 Venezuela Venezuelan Bolivar Fuerte 6.3050 0.0200 6.6880 0.0502 9.4922 0.0314
China Chinese Yuan 6.3986 0.0005 6.7873 0.0300 9.6331 0.0021 Kuwait Kuwaiti Dinar 0.3045 -0.0004 0.3229 0.0010 0.4584 -0.0005 Sweden Swedish Krona 8.6962 -0.0249 9.2245 0.0137 13.0922 -0.0357 Vietnam Vietnamese Dong 22490.0000 -10.0000 23856.2707 92.9722 33858.8223 -10.4356
Colombia Colombian Peso 3128.2250 -20.0500 3318.2629 -6.7712 4709.5525 -29.5437 Malaysia Malaysian Ringgit 4.2325 -0.0315 4.4896 -0.0138 6.3720 -0.0466 Switzerland Swiss Franc 1.0290 0.0010 1.0915 0.0058 1.5491 0.0017 European Union Euro 0.9427 -0.0041 - - 1.4193 -0.0060
Costa Rica Costa Rican Colon 531.2800 0.2300 563.5548 2.6892 799.8435 0.4546 Mexico Mexican Peson 16.5210 -0.0850 17.5246 -0.0137 24.8724 -0.1246 Taiwan New Taiwan Dollar 32.6820 0.0400 34.6674 0.1927 49.2028 0.0669 ..One Month 0.9426 -0.0041 - - 1.4192 -0.0060
Czech Republic Czech Koruna 25.4777 -0.1276 27.0254 -0.0174 38.3567 -0.1868 New Zealand New Zealand Dollar 1.4995 -0.0181 1.5906 -0.0122 2.2575 -0.0269 Thailand Thai Baht 35.8000 -0.0400 37.9748 0.1226 53.8970 -0.0529 ..Three Month 0.9424 -0.0041 - - 1.4191 -0.0060
Denmark Danish Krone 7.0326 -0.0310 7.4599 -0.0003 10.5877 -0.0452 Nigeria Nigerian Naira 199.2500 0.3000 211.3543 1.2343 299.9714 0.4922 Tunisia Tunisian Dinar 2.0632 -0.0060 2.1885 0.0031 3.1062 -0.0087 ..One Year 0.9413 -0.0041 - - 1.4184 -0.0060
Egypt Egyptian Pound 7.8251 0.0181 8.3004 0.0551 11.7806 0.0288 Norway Norwegian Krone 8.6609 -0.0211 9.1870 0.0175 13.0389 -0.0301 Turkey Turkish Lira 2.8874 -0.0191 3.0628 -0.0069 4.3469 -0.0282
Hong Kong Hong Kong Dollar 7.7525 0.0006 8.2235 0.0363 11.6714 0.0024 Pakistan Pakistani Rupee 105.4750 -0.0100 111.8825 0.4751 158.7929 0.0065 United Arab Emirates UAE Dirham 3.6728 -0.0002 3.8959 0.0166 5.5294 0.0004
Hungary Hungarian Forint 294.0844 -0.2394 311.9498 1.1013 442.7448 -0.3003 Peru Peruvian Nuevo Sol 3.3775 0.0030 3.5827 0.0187 5.0848 0.0052 United Kingdom Pound Sterling 0.6642 -0.0001 0.7046 0.0030 - -
India Indian Rupee 66.5500 -0.1050 70.5929 0.1955 100.1912 -0.1445 Philippines Philippine Peso 47.1875 0.0475 50.0541 0.2674 71.0409 0.0811 ..One Month 0.6643 -0.0001 0.7045 0.0030 - -
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 Dec 01 Nov 30 Nov 27 Nov 26 Nov 25 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 2910.80 2912.10 2913.50 2889.00 2851.20 0.00 3110.40 2575.90 Forestry & Paper 45.14 Food Producers 10.04 NON FINANCIALS Index -1.23 FTSE 100 Price Change FTSE 100 Price Change
Dec 01 chge% Index Nov 30 Nov 27 ago yield% Cover ratio adj Return FT 30 Div Yield 1.71 1.70 1.70 1.71 1.73 0.00 3.93 2.74 Software & Comp Serv 30.01 FTSE 250 Index 7.33 Industrial Transport -2.31 3I Group PLC 501.50 -1.00 Kingfisher PLC 354.50 1.10
FTSE 100 (100) 6395.65 0.62 7073.47 6356.09 6375.15 6742.10 3.89 1.45 17.75 243.92 5007.04 P/E Ratio net 26.14 26.20 26.22 26.12 25.75 0.00 19.44 14.26 Nonlife Insurance 26.89 Consumer Services 6.85 Gas Water & Multi -2.38 Aberdeen Asset Management PLC 314.80 -4.60 Land Securities Group PLC 1241 10.00
FTSE 250 (250) 17516.76 0.55 19373.19 17420.70 17265.10 15832.95 2.44 2.13 19.29 414.29 12169.64 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Household Goods & Ho 24.54 Support Services 6.57 FTSE 100 Index -2.91 Admiral Group PLC 1639 18.00 Legal & General Group PLC 274.90 3.40
FTSE 250 ex Inv Co (211) 19074.55 0.56 21096.09 18969.10 18775.87 17038.22 2.45 2.25 18.14 453.77 13512.39 FT 30 hourly changes Fixed Line Telecomms 22.98 Life Insurance 6.46 Chemicals -4.06 Anglo American PLC 406.30 -2.35 Lloyds Banking Group PLC 74.71 1.75
FTSE 350 (350) 3568.13 0.61 3946.28 3546.50 3549.69 3667.27 3.64 1.53 18.00 127.02 5629.39 8 9 10 11 12 13 14 15 16 High Low Construct & Material 22.93 Travel & Leisure 6.46 Utilities -4.98 Antofagasta PLC 512.50 5.00 London Stock Exchange Group PLC 2654 4.00
FTSE 350 ex Investment Trusts (311) 3545.25 0.61 3920.98 3523.69 3526.96 3647.61 3.67 1.53 17.81 127.23 2880.00 2912.1 2910.9 2911.9 2912.3 2917.7 2921.8 2919.9 2914.6 2917.5 2922.8 2894.6 Technology 18.50 General Retailers 5.89 Food & Drug Retailer -5.40 Arm Holdings PLC 1131 7.00 Marks And Spencer Group PLC 507.50 5.00
FTSE 350 Higher Yield (107) 3239.52 0.40 3582.85 3226.61 3241.23 3629.21 5.37 1.28 14.53 170.95 5243.78 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Tobacco 16.09 FTSE SmallCap Index 4.58 Aerospace & Defense -9.25 Ashtead Group PLC 1100 5.00 Meggitt PLC 387.00 -0.70
FTSE 350 Lower Yield (243) 3560.51 0.82 3937.86 3531.43 3521.55 3346.59 1.88 2.24 23.76 68.33 3763.56 Real Est Invest & Se 15.47 Personal Goods 4.30 Banks -12.42 Associated British Foods PLC 3544 -2.00 Merlin Entertainments PLC 415.00 5.80
FTSE SmallCap (288) 4595.55 0.41 5082.59 4576.68 4566.08 4366.68 2.90 1.48 23.24 119.02 6286.52 Consumer Goods 13.64 Mobile Telecomms 3.54 Automobiles & Parts -13.26
FTSE SmallCap ex Inv Co (152) 4150.98 0.45 4590.91 4132.32 4115.13 3777.53 2.83 2.08 16.98 105.62 5963.84 FX: EFFECTIVE INDICES Financial Services 12.88 Electronic & Elec Eq 3.23 Electricity -14.10
Astrazeneca PLC 4515.5 13.00 Mondi PLC 1547 3.00
Aviva PLC 515.00 3.50 Morrison (Wm) Supermarkets PLC 151.30 -1.20
FTSE All-Share (638) 3513.19 0.60 3885.52 3492.13 3494.89 3601.13 3.61 1.53 18.15 123.86 5606.76 Media 12.60 Industrials 2.83 Oil & Gas Producers -14.26
Nov 30 Nov 27 Mnth Ago Dec 01 Nov 30 Mnth Ago Babcock International Group PLC 1056 -15.00 National Grid PLC 928.30 2.50
FTSE All-Share ex Inv Co (463) 3476.71 0.61 3845.17 3455.67 3458.54 3568.85 3.65 1.54 17.79 124.05 2871.02 Leisure Goods 11.89 Equity Invest Instr 1.60 Oil & Gas -14.49 Bae Systems PLC 515.50 -1.00 Next PLC 7950 30.00
FTSE All-Share ex Multinationals (573) 1214.54 0.79 1113.31 1205.05 1202.13 1138.74 2.74 1.60 22.85 31.58 2066.23 Australia 93.11 92.32 89.51 Sweden 78.99 78.73 78.32 Tech Hardware & Eq 11.17 Health Care Eq & Srv 1.55 Industrial Eng -15.10 Barclays PLC 233.50 10.30 Old Mutual PLC 208.80 -0.20
FTSE Fledgling (101) 7749.88 -0.08 8571.21 7755.95 7731.63 6799.75 2.53 1.13 34.95 164.61 13942.09 Canada 88.66 88.31 89.26 Switzerland 157.70 157.01 158.67 Telecommunications 10.78 Health Care 0.09 Oil Equipment & Serv -20.76 Barratt Developments PLC 606.50 5.50 Pearson PLC 823.50 -2.50
FTSE Fledgling ex Inv Co (51) 10575.22 -0.21 11695.99 10597.15 10528.58 8418.24 2.75 1.34 27.09 212.81 18495.20 Denmark 104.80 104.96 105.85 UK 93.45 93.32 92.83 Beverages 10.63 Pharmace & Biotech -0.10 Basic Materials -38.18 Berkeley Group Holdings (The) PLC 3280 69.00 Persimmon PLC 1926 11.00
FTSE All-Small (389) 3187.80 0.39 3525.64 3175.48 3168.00 3017.65 2.88 1.47 23.64 81.84 5599.33 Japan 126.14 126.60 126.63 USA 106.72 106.58 104.41 Real Est Invest & Tr 10.53 Financials -0.59 Mining -44.60 Bg Group PLC 1040 8.50 Prudential PLC 1564 24.50
FTSE All-Small ex Inv Co Index (203) 3098.49 0.43 3426.87 3085.35 3072.24 2802.66 2.83 2.05 17.23 78.07 5640.36 New Zealand 113.21 112.11 113.67 Euro 84.01 84.26 85.87 FTSE All{HY-}Share Index -1.07 Industrial Metals & -48.57 Bhp Billiton PLC 812.70 15.80 Randgold Resources LD 4147 105.00
FTSE AIM All-Share Index (821) 738.30 0.13 816.55 737.32 732.02 710.95 1.44 0.79 88.15 8.69 793.59 Norway 86.29 86.07 85.05
BP PLC 384.55 -0.70 Reckitt Benckiser Group PLC 6353 123.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 3886.5 18.50 RELX PLC 1204 6.00
Oil & Gas (18) 6434.61 0.25 7116.56 6418.31 6453.62 7876.35 5.85 0.20 85.27 371.71 5389.40 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 846.00 12.00 Rio Tinto PLC 2214.5 6.00
Oil & Gas Producers (11) 6132.74 0.25 6782.70 6117.71 6154.65 7479.65 5.86 0.16 105.03 354.65 5311.29 Bt Group PLC 492.25 -4.20 Rolls-Royce Holdings PLC 604.00 -2.50
Oil Equipment Services & Distribution (7)13672.62 0.50 15121.66 13604.37 13457.43 18553.45 5.57 1.41 12.73 761.22 10055.65 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 1928 8.00 Royal Bank Of Scotland Group PLC 312.20 9.80
Basic Materials (29) 2971.61 0.31 3286.54 2962.43 2927.78 4910.64 6.86 1.88 7.75 198.46 2913.76 Burberry Group PLC 1247 2.00 Royal Dutch Shell PLC 1660.5 8.50
Chemicals (7) 11798.01 -0.26 13048.37 11828.82 11575.28 11588.40 2.36 2.28 18.61 237.16 10143.06 Dec 01 No of US $ Day Mth YTD Total
YTD Gr Div Dec 01 No of US $ Day Mth YTD Total YTD Gr Div Capita PLC 1283 11.00 Royal Dutch Shell PLC 1644 1.00
Forestry & Paper (1) 18182.71 0.19 20109.73 18147.45 17912.38 12858.36 1.98 3.37 14.94 360.52 18887.71 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Carnival PLC 3499 34.00 Royal Mail PLC 489.20 3.10
Industrial Metals & Mining (2) 836.34 -0.05 924.98 836.78 800.93 1471.08 1.38 -18.64 -3.90 11.18 729.86 FTSE Global All Cap 7752 460.03 -0.4 -0.8 0.1 -2.1 628.39
2.4 Oil & Gas 165 335.24 0.1 0.1 -15.8 511.18 -12.9 3.9 Centrica PLC 218.70 0.60 Rsa Insurance Group PLC 444.70 4.80
Mining (19) 7678.71 0.43 8492.50 7645.94 7572.76 14301.16 8.13 1.85 6.65 616.70 3942.38 FTSE Global All Cap 7123 472.90 -0.5 -0.7 -0.2 -2.3 634.59
2.4 Oil & Gas Producers 117 311.33 0.1 0.1 -14.1 483.20 -11.0 3.9 Coca-Cola Hbc AG 1613 2.00 Sabmiller PLC 4052 20.50
FTSE Global Large Cap 1421 405.94 -0.5 -1.1 -0.2 -2.6 567.21
2.6 Oil Equipment & Services 39 319.27 0.3 0.3 -23.0 443.74 -20.6 4.1 Compass Group PLC 1169 15.00 Sage Group PLC 576.50 -10.00
Industrials (117) 4469.29 0.25 4942.95 4458.09 4425.19 4225.78 2.49 1.20 33.42 108.17 4434.76
Construction & Materials (13) 5325.37 0.45 5889.75 5301.64 5279.14 4197.03 2.25 -0.83 -53.90 121.16 5441.42 FTSE Global Mid Cap 1648 615.66 -0.1 -0.5 1.5 -0.3 802.81
2.0 Basic Materials 262 366.41 0.0 0.0 -15.9 536.00 -13.6 3.3 Crh PLC 1966 11.00 Sainsbury (J) PLC 252.70 -1.10
Aerospace & Defense (9) 4480.90 -0.10 4955.79 4485.44 4481.04 4885.64 2.55 0.96 40.88 113.27 4632.34 FTSE Global Small Cap 4683 645.01 -0.2 0.7 0.6 -1.1 816.68
2.0 Chemicals 123 616.03 0.1 0.1 -1.2 903.82 1.0 2.4 Diageo PLC 1912.5 2.50 Schroders PLC 3019 23.00
General Industrials (6) 3625.89 0.10 4010.17 3622.34 3601.40 3132.71 3.17 1.71 18.45 112.80 3943.95 FTSE All-World 3069 268.73 -0.4 -1.0 0.1 -2.2 387.28
2.5 Forestry & Paper 16 211.72 -0.5 -0.5 1.7 338.86 4.4 2.9 Direct Line Insurance Group PLC 414.30 2.50 Severn Trent PLC 2277 25.00
Electronic & Electrical Equipment (11) 5330.15 -0.06 5895.04 5333.18 5279.32 4852.44 2.20 2.04 22.33 110.13 4709.20 FTSE World 2553 476.82 -0.4 -0.9 0.4 -1.9 922.60
2.5 Industrial Metals & Mining 67 266.18 -0.7 -0.7 -35.4 390.18 -33.8 3.6 Dixons Carphone PLC 487.40 2.70 Shire PLC 4636 -10.00
Industrial Engineering (14) 7901.99 -0.66 8739.45 7954.35 7835.79 8886.78 3.09 1.52 21.23 243.31 9251.54 FTSE Global All Cap ex UNITED KINGDOM In 7425 472.26 -0.4 -0.7 0.3 -1.9 636.11
2.4 Mining 56 338.79 0.1 0.1 -40.5 496.30 -37.9 6.5 Easyjet PLC 1646 -7.00 Sky PLC 1123 17.00
Industrial Transportation (8) 4081.10 0.52 4513.62 4060.02 4055.37 3941.75 3.69 0.95 28.66 135.04 3405.36 FTSE Global All Cap ex USA 5741 424.53 -0.4 -2.0 -2.5 -5.1 615.19
2.9 Industrials 538 308.49 -0.3 -0.3 -2.0 428.08 0.0 2.2 Experian PLC 1233 2.00 Smith & Nephew PLC 1127 2.00
Support Services (56) 6852.60 0.50 7578.84 6818.55 6751.41 6254.51 2.27 1.53 28.74 150.64 6863.57 FTSE Global All Cap ex JAPAN 6491 469.16 -0.3 -0.8 -0.8 -3.0 646.46
2.5 Construction & Materials 109 427.70 -0.5 -0.5 -0.8 621.64 1.2 2.1 Fresnillo PLC 722.50 7.50 Smiths Group PLC 1033 -
FTSE Developed 2118 434.67 -0.4 -0.7 1.4 -0.8 598.16
2.4 Aerospace & Defense 28 517.78 -0.8 -0.8 4.2 712.84 6.3 2.1 G4S PLC 232.00 5.10 Sports Direct International PLC 736.50 5.50
Consumer Goods (40) 18423.74 0.57 20376.30 18319.75 18383.41 16701.76 2.97 1.73 19.48 527.51 12981.64
FTSE Developed All Cap 5742 456.33 -0.4 -0.5 1.4 -0.8 621.19
2.4 General Industrials 56 219.56 -0.5 -0.5 0.9 326.82 3.3 2.6 Gkn PLC 301.10 0.60 Sse PLC 1459 25.00
Automobiles & Parts (1) 7075.99 0.20 7825.91 7061.89 7012.54 8117.06 2.82 1.53 23.14 199.75 6507.37
FTSE Developed Large Cap 923 401.81 -0.4 -0.8 1.1 -1.2 560.45
2.6 Electronic & Electrical Equipment 69 328.77 -0.1 -0.1 1.1 421.16 2.9 1.8 Glaxosmithkline PLC 1351 -4.50 St. James's Place PLC 1021 5.00
Beverages (6) 15678.39 0.29 17340.00 15632.95 15700.01 14928.36 2.44 1.65 24.90 375.74 10674.23
FTSE Developed Europe Large Cap 217 339.70 0.0 -2.2 -0.8 -3.9 534.86
3.4 Industrial Engineering 105 563.52 0.5 0.5 -8.9 769.18 -6.9 2.5 Glencore PLC 94.48 -2.23 Standard Chartered PLC 556.70 -0.50
Food Producers (10) 9150.19 0.21 10119.93 9131.15 9033.36 8313.21 1.77 1.42 40.02 112.52 7614.15
FTSE Developed Europe Mid Cap 302 519.62 0.6 -1.0 6.3 3.9 743.45
2.5 Industrial Transportation 98 524.68 -0.6 -0.6 -12.1 726.08 -10.4 2.3 Hammerson PLC 627.50 17.00 Standard Life PLC 417.10 0.60
Household Goods & Home Construction (13)13552.06 1.51 14988.31 13351.08 13301.48 10409.48 2.10 2.60 18.28 252.82 9194.14
FTSE Dev Europe Small Cap 715 728.09 0.7 -0.9 8.1 5.7 1014.62
2.3 Support Services 73 282.26 -0.2 -0.2 3.6 376.70 5.5 1.8 Hargreaves Lansdown PLC 1508 12.00 Taylor Wimpey PLC 196.50 1.90
Leisure Goods (2) 5596.35 -0.53 6189.45 5626.35 5612.71 5218.97 4.27 1.19 19.60 238.83 4739.76
FTSE North America Large Cap 323 444.93 -0.4 -0.1 2.1 0.0 584.69
2.2 Consumer Goods 425 419.38 -0.7 -0.7 3.6 594.91 5.9 2.4 Hikma Pharmaceuticals PLC 2198 33.00 Tesco PLC 167.60 0.40
Personal Goods (6) 22068.40 -0.20 24407.22 22112.36 22370.62 21956.88 2.95 3.02 11.23 629.27 14222.64
FTSE North America Mid Cap 400 662.28 -0.2 0.1 -1.0 -2.4 816.12
1.7 Automobiles & Parts 101 388.46 0.1 0.1 -0.3 529.39 1.9 2.4 HSBC Holdings PLC 539.00 9.50 Travis Perkins PLC 2046 13.00
Tobacco (2) 47110.53 0.58 52103.33 46840.64 47187.60 43085.94 4.23 1.16 20.38 1994.40 28710.22
FTSE North America Small Cap 1517 672.62 -0.3 1.6 -0.9 -2.4 806.40
1.7 Beverages 48 577.95 -1.1 -1.1 7.4 832.19 10.0 2.4 Imperial Tobacco Group PLC 3616 28.00 Tui AG 1139 37.00
Health Care (19) 9265.58 0.01 10247.55 9264.41 9297.30 9647.72 3.77 3.53 7.51 347.26 6755.38
FTSE North America 723 297.76 -0.4 0.0 1.6 -0.4 401.00
2.1 Food Producers 107 552.20 -0.7 -0.7 0.0 807.06 2.1 2.2 Inmarsat PLC 1120 5.00 Unilever PLC 2825 -9.00
Health Care Equipment & Services (7) 6973.93 0.32 7713.03 6952.01 6918.34 6319.37 1.63 2.14 28.68 97.63 5907.27
FTSE Developed ex North America 1395 229.89 -0.4 -1.7 1.2 -1.5 357.41
2.9 Household Goods & Home Construction 49 394.88 -0.8 -0.8 -0.3 557.89 2.0 2.4 Intercontinental Hotels Group PLC 2600 44.00 United Utilities Group PLC 976.50 10.00
Pharmaceuticals & Biotechnology (12)12538.53 -0.01 13867.37 12540.35 12594.33 13226.36 3.97 3.58 7.04 498.46 8120.86
FTSE Japan Large Cap 177 326.94 -1.5 -1.2 9.2 7.2 408.46
1.9 Leisure Goods 28 135.84 -2.3 -2.3 7.8 173.69 8.8 1.4 International Consolidated Airlines Group S.A. 576.50 9.50 Vodafone Group PLC 222.00 -2.25
Consumer Services (97) 4946.82 0.73 5471.08 4911.13 4884.26 4512.78 2.21 1.68 26.92 107.62 4457.94 FTSE Japan Mid Cap 303 492.23 -1.0 0.517.5 15.8 594.06
1.5 Personal Goods 80 608.09 -0.9 -0.9 4.3 822.46 6.1 1.9
Food & Drug Retailers (7) 2781.89 -0.03 3076.71 2782.85 2797.41 2853.25 1.92 -1.50 -34.60 53.33 3181.11 Intertek Group PLC 2866 39.00 Whitbread PLC 4655 107.00
FTSE Global wi JAPAN Small Cap 781 522.88 -0.2 1.513.4 11.5 651.23
1.7 Tobacco 12 1223.79 -0.6 -0.6 14.0 2373.29 18.1 4.0 Intu Properties PLC 328.00 4.50 Wolseley PLC 3870 16.00
General Retailers (33) 3102.58 0.68 3431.39 3081.73 3056.24 2812.87 2.22 2.25 19.93 63.84 3389.17
FTSE Japan 480 136.12 -1.4 -0.810.8 1.8 Health Care
8.9 191.09 172 450.85 -1.0 -1.0 3.8 627.33 5.6 1.8 Itv PLC 272.60 1.60 Wpp PLC 1536 1.00
Media (22) 7519.52 0.60 8316.45 7474.31 7468.96 6699.99 2.72 1.62 22.67 208.30 4439.11
FTSE Asia Pacific Large Cap ex Japan 533 539.53 -0.7 -2.8 -9.8 -12.4 805.01
3.3 Health Care Equipment & Services 61 635.69 -0.8 -0.8 7.6 727.62 8.5 1.0 Johnson Matthey PLC 2811 -19.00
Travel & Leisure (35) 8569.13 1.08 9477.29 8477.73 8386.31 7743.40 1.86 2.23 24.12 154.89 7792.10
FTSE Asia Pacific Mid Cap ex Japan 435 741.14 -0.6 -2.0 -5.8 -8.0 1066.25
2.9 Pharmaceuticals & Biotechnology 111 342.82 -1.1 -1.1 2.6 495.73 4.7 2.1
Telecommunications (7) 4075.48 -0.78 4507.41 4107.56 4132.10 3849.43 3.97 0.19 136.00 148.35 4254.80 FTSE Asia Pacific Small Cap ex Japan 1430 497.54 -0.5 -1.2 -4.6 -6.9 706.38
2.8 Consumer Services 390 394.81 -0.7 -0.7 5.5 512.20 7.1 1.7
Fixed Line Telecommunications (5) 5638.30 -0.63 6235.85 5673.83 5705.63 4801.92 2.65 1.80 20.92 105.24 4846.41
Mobile Telecommunications (2) 5115.16 -0.89 5657.27 5161.15 5193.35 5167.91 4.92 -0.44 -46.29 251.48 4784.05
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
968
2010
427.93
582.84
-0.7
-1.1
-2.7
-3.6
-9.3
-13.1
-11.8 678.63
3.3 Food & Drug Retailers
-15.5 830.27
3.2 General Retailers
54 297.91
121 539.81
-0.5
-1.0
-0.5
-1.0
-0.9 402.37
12.9 683.23
0.7
14.5
1.8
1.5
UK STOCK MARKET TRADING DATA
Utilities (8) 8358.45 0.83 9244.28 8290.01 8376.36 8999.47 4.86 1.36 15.14 388.12 8882.37 FTSE Emerging Large Cap 498 551.49 -1.1 -3.8
-13.3 -15.7 790.37
3.3 Media 91 303.50 -0.6 -0.6 0.9 394.40 2.5 1.8 Dec 01 Nov 30 Nov 27 Nov 26 Nov 25 Yr Ago
Electricity (3) 8434.25 2.36 9328.12 8239.40 8397.69 10241.56 6.02 1.33 12.50 504.89 11219.97 FTSE Emerging Mid Cap 453 721.89 -1.3 -3.7
-14.0 -16.2 1023.34
2.9 Travel & Leisure 124 374.98 -0.5 -0.5 4.1 491.47 5.8 1.7 SEAQ Bargains 5371.00 5131.00 5131.00 5131.00 4661.00 2.00
Gas Water & Multiutilities (5) 7882.41 0.44 8717.80 7847.58 7912.21 8212.92 4.57 1.37 15.99 339.15 8405.03 FTSE Emerging Small Cap 1059 615.39 -0.8 -1.9
-10.6 -13.0 845.43
3.0 Telecommunication 91 159.36 -0.4 -0.4 -4.6 279.90 -0.8 4.2 Order Book Turnover (m) 35.82 26.99 26.99 26.99 - -
Financials (283) 4665.10 1.37 5159.51 4601.86 4614.92 4733.66 3.50 1.88 15.17 160.86 4071.61 FTSE Emerging Europe 99 288.22 -0.9 -3.0 -4.0 -7.5 421.83
4.3 Fixed Line Telecommuniations 44 133.37 -0.1 -0.1 -2.7 256.08 1.7 4.6 Order Book Bargains 815029.00 567293.00 567293.00 567293.00 1761.00 -
Banks (9) 3842.41 2.35 4249.63 3754.04 3783.02 4462.60 4.30 1.37 17.03 170.78 2648.69 FTSE Latin America All Cap 240 627.12 -3.7 -4.4
-28.7 -30.4 922.36
3.6 Mobile Telecommunications 47 168.06 -0.8 -0.8 -7.1 267.80 -4.0 3.5 Order Book Shares Traded (m) 1905.00 1135.00 1135.00 1135.00 0.00 -
Nonlife Insurance (10) 2864.83 0.78 3168.44 2842.78 2820.57 2154.25 2.65 2.06 18.30 75.75 4814.65 FTSE Middle East and Africa All Cap 220 657.62 -1.2 -6.1
-12.2 2.9 Utilities
-14.6 979.46 163 234.93 -0.5 -0.5 -12.1 429.35 -9.0 4.0 Total Equity Turnover (£m) 2390.87 0.01 0.01 0.01 0.00 0.87
Life Insurance/Assurance (11) 8197.77 0.99 9066.57 8117.72 8151.24 7861.48 3.70 1.59 17.03 293.04 7525.64 FTSE Global wi UNITED KINGDOM All Cap In 327 341.13 -0.1 -2.3 -1.7 3.7 Electricity
-5.0 538.60 112 254.87 -0.4 -0.4 -10.1 460.78 -7.1 3.8 Total Mkt Bargains 925633.00 216.00 216.00 216.00 1766.00 37.00
Index- Real Estate Investment & Services (21) 3111.34 0.16 3441.08 3106.27 3082.21 2667.21 2.03 5.70 8.64 58.13 7989.43 FTSE Global wi USA All Cap 2011 512.49 -0.5 0.3 2.5 2.0 Gas Water & Multiutilities
0.7 655.66 51 252.00 -0.5 -0.5 -15.3 472.38 -12.0 4.4 Total Shares Traded (m) 4845.00 0.00 0.00 0.00 0.00 0.00
Real Estate Investment Trusts (25) 3088.58 1.29 3415.91 3049.19 3040.96 2802.54 2.70 6.33 5.86 80.68 3641.07 FTSE Europe All Cap 1393 390.70 0.1 -1.9 1.1 3.2 Financials
-1.9 596.45 676 204.54 -0.4 -0.4 -5.2 317.24 -2.6 2.9 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (32) 8266.27 0.35 9142.33 8237.42 8227.06 7231.13 2.80 2.22 16.10 203.84 8956.20 FTSE Eurobloc All Cap 629 368.42 0.2 -1.8 2.8 2.8 Banks
0.0 568.76 242 182.10 -0.4 -0.4 -9.5 301.05 -6.6 3.4 (c) Market closed.
Equity Investment Instruments (175) 7674.09 0.45 8487.39 7639.39 7637.28 7575.64 2.61 1.05 36.40 186.56 4027.94 FTSE RAFI All World 3000 3015 5563.80 -0.4 -1.5 -2.9 3.1 Nonlife Insurance
-5.5 6995.67 71 215.67 -0.4 -0.4 0.7 299.79 2.9 2.3
Non Financials (355) 4062.49 0.33 4493.03 4049.19 4049.43 4178.64 3.65 1.40 19.53 144.38 5682.65 FTSE RAFI US 1000 1004 9050.66 -0.3 0.1 -0.4 2.5 Life Insurance
-2.6 11418.15 51 207.17 -0.4 -0.4 -1.9 314.08 0.7 2.8
Technology (20) 1477.57 0.08 1634.16 1476.43 1462.39 1146.69 1.30 2.09 36.78 18.71 1846.37 FTSE EDHEC-Risk Efficient All-World 3069 319.77 -0.3 -0.8 2.0 2.2 Financial Services
0.0 428.95 140 230.01 -0.4 -0.4 -0.7 305.80 1.1 1.9 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1785.21 -0.79 1974.41 1799.46 1775.99 1302.01 1.83 1.65 33.23 32.33 2336.96 FTSE EDHEC-Risk Efficient Developed Europe 519 283.19 0.3 -1.3 4.2 2.6 Technology
1.7 412.90 187 178.04 0.1 0.1 3.4 212.24 5.2 1.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (7) 1715.25 0.80 1897.03 1701.67 1690.48 1387.44 0.87 2.84 40.29 14.25 1968.84 Software & Computer Services 85 310.44 -0.1 -0.1 14.3 356.20 15.6 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 102 131.99 0.3 0.3 -5.7 161.77 -3.7 2.4 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6388.04 6383.12 6383.40 6394.13 6389.66 6395.82 6394.44 6398.60 6398.92 6402.26 6366.21 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 17424.36 17472.06 17466.06 17490.43 17505.24 17527.25 17527.37 17521.22 17519.27 17532.04 17420.88 (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 4578.81 4580.06 4581.60 4584.94 4588.67 4592.93 4593.74 4596.45 4598.48 4599.21 4578.51
FTSE All-Share 3506.27 3505.78 3505.74 3511.35 3510.02 3513.55 3512.95 3514.65 3514.78 3516.44 3499.25 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:14:24:00 Day's Low15:17:15 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 5898.87(24/08/2015) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:14:24:00 Day's Low15:17:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3245.99(24/08/2015)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Blue Planet Investment Trust Int 3.339L 1.307L 1.95 1.07 - - - - - date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Cardiff Property (The) Pre 0.577 0.534 2.64 3.218 195.5 236.5 10 9.55 Feb 18 13.5 12.95 11/17 260.00 AIM FARN Faron Pharmaceuticals Oy 285.00 0.00 295.00 265.00 6586.8
1p Nil 10-12-15 1.25 1.14 Lonmin PLC 1.23 0.04 Character Group (The) Pre 99.054 97.889 12.268 7.107 48.56 27.66 6 3.95 Jan 29 11 7.25 11/17 10.00 SCGL Sealand Capital Galaxy Ltd 12.50 - 13.90 13.90 0.0
465p Nil 10-12-15 560.30 548.60 Standard Chartered PLC 557.20 -1.30 Collagen Solutions Int 1.442 0.143 0.357L 0.561L 0.26L 0.88L - - - - - 11/13 240.00 SCT Softcat PLC 281.75 -2.25 296.60 240.00 55441.7
GB Group Int 32.368 23.232 2.57 1.388 1.8 1.5 - - - - - 11/10 5.00 SEN Senterra Energy PLC 4.63 -0.03 5.59 4.30 124.9
Gooch & Housego Pre 78.702 70.056 10.106 7.881 30.9 22.5 5.2 4.6 Mar 3 8.2 7.2 11/09 195.00 GYM Gym Group (The) PLC 201.00 -4.25 216.75 195.00 25749.2
ITE Group Pre 135.794 174.827 31.546 41.478 10.5 13.8 4.9 4.9 Feb 8 7.4 7.4 11/06 180.00 MCS McCarthy & Stone PLC 225.75 -0.25 240.75 180.00 121298.7
MS International Int 23.981 21.737 0.395 0.071 2.4 0.6 1.5 1.5 Jan 4 8 9.667 11/06 100.00 RGL Regional REIT Ltd 100.50 -1.38 104.00 99.75 27558.8
Northgate Int 313.147 304.952 42.832 46.693 25.4 27.9 5.1 4.3 Jan 11 15.3 14.656 10/28 185.00 HSW Hostelworld Group PLC 227.00 10.00 230.00 193.00 21694.6
Park Group Int 72.083 58.501 1.404L 2.422L 0.62L 1.05L 0.85 0.8 Apr 6 2.45 3.1 10/26 1.00 UPL Upland Resources Ltd 0.90 0.00 1.36 0.81 192.1
Pinewood Group Int 38.246 38.506 4.447 1.758 7.6 7.7 0.8 0.7 Feb 8 3.6 3.267 10/22 190.00 IBST Ibstock PLC 205.50 -1.50 207.52 187.50 83330.3
Private & Commercial Finance Group Int 24.94 21.994 1.525 0.848 2.1 1.2 - - - - - 10/21 37.00 AIM EVG Evgen Pharma PLC 29.50 -1.25 45.00 25.00 2149.7
Sanderson Group Pre 19.182 16.411 2.031 1.916 3.4 3.1 1.2 1 Mar 18 2.1 1.8
Sutton Harbour Holdings Int 3.674 3.837 1.261 0.661 1.05 0.55 - - - - -

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 2 December 2015 ★ FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) BakerHu♦ 54.22 0.32 70.45 44.11 1.25 -87.48 23644.62 Lyondell♦ 96.24 0.42 107.32 70.06 3.06 10.39 43254.47
ANZ♦ 27.79 0.64 37.25 25.01 8.89 11.31 58931.3 Nokia 6.19 -0.11 7.87 5.65 2.36 -40.86 24906.95 AstellasPh 1749.5 16.00 2047 1514.5 1.87 22.26 31634.43 AtlasCpcoB 215.10 -0.70 270.00 173.70 1.44 18.15 9652.04 BankAm 17.58 0.15 18.48 14.60 1.13 13.25 182999.33 Marathon Ptl♦ 58.81 0.40 60.38 37.62 1.81 9.36 31344.21
BHPBilltn 18.75 0.66 34.29 18.09 12.36 21.91 43993.2 SampoA 46.80 -0.12 49.40 37.01 4.36 14.87 27740.54 Bridgestne 4416 36.00 5182 3753.5 2.77 12.56 29222.05 Ericsson 82.65 -1.30 120.00 77.45 4.13 26.25 31411.22 Baxter 37.98 0.33 43.44 32.18 4.38 11.45 20773 Marsh&M 55.70 0.40 59.99 50.90 2.61 20.42 29053.2
CmwBkAu 80.99 1.56 96.69 70.15 7.35 15.21 101030.84 France (€) Canon 3751 35.00 4539 3402 4.35 18.34 40715.74 H&M 326.10 6.60 368.50 295.20 3.00 24.91 62063.78 BB & T 38.67 0.05 41.90 34.24 2.62 14.41 30168.41 MasterCard 97.63 -0.29 101.76 74.61 0.65 30.22 107415.8
CSL 100.71 0.60 102.43 81.48 1.39 26.28 34201.13 Airbus Grpe 67.25 -1.19 68.50 39.64 1.87 17.76 56216.14 CntJpRwy 22185 200.00 24800 16565 0.55 14.62 37193.16 Investor 333.00 2.60 363.40 265.10 2.79 15.69 29172.82 BectonDick 152.42 2.17 154.98 128.87 1.56 45.78 31914.56 McDonald's♦ 114.34 0.18 114.99 87.50 2.96 24.92 104990.4
NatAusBk♦ 29.91 0.52 39.71 27.51 8.97 12.82 57375.74 AirLiquide 109.75 -5.75 123.95 93.01 2.34 21.38 40056.62 Denso 6000 127.00 6548 4945 2.09 18.09 43169.17 Nordea Bk 96.50 0.25 115.50 85.15 6.20 10.89 44941.51 BerkshHat 202297.02 937.02 229374 190007 - 14.69 164088.98 McGraw Hill♦ 96.05 -0.42 109.13 84.64 1.33-263.25 25962.32
Telstra 5.49 0.13 6.74 5.06 7.86 15.89 49033.68 AXA 25.63 0.02 25.84 17.56 3.73 12.21 66482.87 EastJpRwy 11700 80.00 12815 8553 1.09 21.27 37373.35 SEB 92.90 0.70 111.50 86.65 5.27 11.24 23181.95 Biogen 288.86 2.00 480.18 254.00 - 18.98 64387.79 McKesson♦ 189.55 0.20 243.61 160.10 0.52 21.44 43617.18
Wesfarmers 38.97 0.88 46.95 36.65 8.53 17.94 31992.75 BNP Parib 56.28 0.17 61.00 43.14 2.79 9.33 74396.02 Fanuc 22420 500.00 28575 17930 3.52 20.97 37576.6 SvnskaHn 116.90 0.80 426.00 112.40 3.67 14.79 25161.83 BkNYMeln 43.71 -0.13 45.45 35.63 1.55 19.03 47772.96 Medtronic 76.02 0.68 79.50 55.54 1.64 36.54 107455.92
Westpc♦ 32.79 0.64 40.07 29.10 7.65 14.19 79599.42 ChristianDior 173.20 - 195.35 127.90 1.97 12.09 33387.21 FastRetail 49890 110.00 61970 40610 0.70 46.57 43068.28 Swedbank 192.70 -0.50 223.90 179.10 6.07 13.26 25084.23 BlackRock♦ 362.11 0.57 382.84 275.00 2.32 18.73 59383.34 Merck 54.09 1.08 63.62 45.69 3.31 14.43 151088.78
Woolworths 24.49 0.82 34.71 23.05 6.99 14.28 22738.58 Cred Agr 11.42 -0.01 14.49 9.82 3.21 23.32 31958.16 Fuji Hvy Ind 5200 112.00 5200 3669 2.14 11.63 33130.44 TeliaSonera 43.22 0.42 55.85 39.89 7.15 12.52 21520.48 Boeing♦ 148.04 2.59 158.83 115.14 2.32 18.72 99184.38 Metlife♦ 51.22 0.13 58.23 44.49 2.81 9.99 56937.51
Belgium (€) Danone 65.45 -0.88 67.74 51.50 2.30 42.97 45470.66 Hitachi 746.10 19.50 939.90 585.70 1.42 13.45 29348.89 Volvo 89.15 0.80 120.50 76.35 3.47 18.48 16637.71 BrisMySq 67.76 0.75 70.54 51.82 2.17 64.41 113049.75 Microsoft♦ 54.82 0.47 55.14 39.72 2.25 36.78 437917.37
AnBshInBv 120.85 -1.10 124.20 85.63 2.59 23.19 206163.02 EDF♦ 14.07 -0.04 24.89 13.95 8.94 7.36 27750.28 HondaMtr 4104 102.00 4499 3382.5 2.19 13.23 60501.35 Switzerland (SFr) Broadcom♦ 55.14 0.51 57.70 40.21 0.97 24.11 30933.54 Mnstr Bvrg 156.66 2.05 158.35 103.18 - 54.64 31758.5
KBC Grp 56.52 0.02 66.00 42.77 3.70 8.92 25047.43 Engie SA 16.55 0.06 20.57 13.80 6.08 44.18 42752.4 JapanTob 4450 40.00 4848 3101 2.34 18.97 72431.34 ABB 19.14 -0.37 22.16 16.49 - 17.34 43057.67 CapOne 79.01 0.50 92.10 67.73 1.76 11.18 42036.9 MondelezInt 44.28 0.62 48.58 33.97 1.39 8.70 70368.34
Essilor Intl 123.40 -0.15 125.15 82.75 0.83 42.85 28294.69 KDDI■ 3046 -12.00 8550 2519 2.01 46.91 66705.62 CredSuisse 22.17 0.05 28.94 18.57 3.25 9.95 36550.94 CardinalHlth 87.93 1.08 91.91 74.76 1.65 22.15 28926.98 Monsanto 96.43 1.27 126.00 81.22 1.99 20.74 42413.5
Brazil (R$)
Esslr Intl 123.40 -0.15 125.15 82.75 0.83 42.85 28294.69 Keyence 67700 980.00 70100 50700 0.31 32.64 33499.82 Nestle 76.30 -0.05 77.00 64.55 3.04 16.04 236430.25 Carnival♦ 50.95 0.42 54.59 41.86 2.02 28.93 30197.46 MorganStly 34.98 0.68 41.04 30.15 1.42 21.64 67723.11
Ambev 18.60 -0.04 20.46 15.00 8.51 23.99 76058.96
Hermes Intl 335.50 2.25 365.55 267.20 0.88 37.73 37570.18 MitsbCp 2119.5 47.50 2837 1887.5 2.65 11.18 27427.62 Novartis 88.05 0.10 103.20 82.25 3.17 24.64 229077.44 Caterpillar 71.19 -1.46 101.46 62.99 4.01 14.79 41449.22 MylanNV 52.73 1.43 76.69 37.59 - 29.61 25927.85
Bradesco 24.05 0.03 32.40 22.84 3.92 8.72 15794.92
LOreal 167.05 -0.55 181.30 127.70 1.63 31.66 99180.43 MitsubEst 2632 42.50 2975 2321 0.58 47.02 29782.5 Richemont 78.00 1.00 92.25 66.40 2.14 24.05 39570.43 CBS 51.00 0.52 63.95 38.51 1.17 16.57 22118.19 Netflix 124.21 0.88 129.29 45.08 - 333.88 53085.9
Cielo 34.98 -0.13 46.27 30.48 1.89 17.36 17169.91
LVMH♦ 157.40 -1.35 176.60 123.50 2.04 13.81 84827.2 MitsubishiEle 1402 39.00 1718 1063 1.96 12.85 24499.51 Roche 276.40 0.90 295.80 238.80 3.05 25.26 188724.75 Celgene 109.53 0.08 140.72 92.98 - 55.24 86587.86 News Corp A 29.68 0.17 39.27 22.81 1.00 7.77 34747.92
ItauHldFin 25.43 0.09 32.66 23.81 1.94 5.91 20159.28
Nmrcble-SFR 40.85 0.33 60.01 33.13 - -48.03 18989.87 MitsuiFud 3158 54.00 3879 2951 0.90 25.45 25480.53 Swiss Re 98.05 - 98.85 74.95 4.71 37.37 35325.15 CharlesSch 33.72 0.01 35.72 25.43 0.71 34.18 44393.17 NextEraE♦ 100.03 0.17 112.64 93.74 3.02 14.44 46067.41
Petrobras 9.31 -0.10 16.26 7.66 - -3.63 18026.74
Orange 16.07 -0.29 16.98 12.21 3.75 42.06 45153.54 MitUFJFin 804.70 14.70 936.80 604.00 2.28 7.18 92790.83 Swisscom 506.50 -0.50 585.00 474.40 4.55 17.74 25499.47 ChevrnTx♦ 92.59 1.27 114.82 69.58 4.59 20.23 174255.9 Nike 132.12 -0.16 135.30 90.69 0.83 34.12 89144.15
Vale 12.72 -0.45 27.89 12.59 18.45 -5.55 10646.67
PernodRic 108.00 0.30 117.75 87.90 1.53 33.15 30406.94 Mizuho Fin 252.60 4.10 280.40 191.00 3.13 7.68 51130.23 Syngent 377.50 -1.80 435.20 280.00 2.98 21.59 34099.79 Cigna 137.04 2.06 170.68 99.88 0.03 16.89 35305.33 NorfolkS♦ 94.76 -0.30 112.22 72.10 2.45 17.24 28292.47
Canada (C$) Murata Mfg 19700 600.00 22220 12430 1.04 19.06 36115.5 Cisco 27.50 0.25 30.31 23.03 2.91 15.12 139896.71 Northrop♦ 186.90 0.54 193.99 138.68 1.60 18.14 34086.48
Renault 95.06 -0.45 100.25 55.68 2.01 10.21 29819.1 UBS 19.87 0.12 22.57 13.58 3.95 11.74 74334.11
BCE 57.90 0.42 60.20 50.92 4.40 19.17 36769.53 NipponTT 4643 78.00 5066 3011 2.09 16.07 79215.14 Citigroup 54.47 0.38 60.95 46.60 0.22 12.35 162250.72 NXP 93.47 0.01 114.00 70.35 - 32.48 23531.11
Safran 68.17 -1.71 72.45 47.75 1.77 -20.58 30155.94 Zurich Fin 269.90 -1.00 334.60 232.60 - 12.88 39451.11
BkMontrl 78.28 1.17 83.81 64.01 4.05 12.15 37614.17 Nissan Mt 1289 -25.50 1350 963.10 2.97 9.70 47423.84 CME Grp 97.47 -0.18 100.87 83.43 2.01 26.24 32967.6 Occid Pet 75.67 0.08 83.74 63.60 3.86 -9.63 57791.89
Sanofi 83.65 -0.73 101.10 69.77 3.43 22.71 115834.1 Taiwan (NT$)
BkNvaS 61.21 0.32 70.85 52.60 5.44 11.71 55060.04 Nomura 750.00 19.80 909.20 609.30 3.13 10.34 23332 Coca-Cola♦ 42.94 0.32 44.77 36.56 3.00 27.72 186760.64 Oracle 39.13 0.16 46.71 35.14 1.35 18.80 166853.58
Sant Gbn 41.13 -0.71 44.84 31.83 1.52 27.44 24642.46 Chunghwa Telecom 99.90 0.10 101.00 91.20 4.80 19.79 23712.42
Brookfield♦ 46.31 0.46 48.64 36.34 1.32 12.45 33973.41 Nppn Stl 2545 72.50 3505 2122.5 1.52 10.27 19683.16 Cognizant 64.92 0.34 69.80 50.17 - 25.63 39570.64 Pepsico 100.90 0.74 103.44 76.48 2.67 30.11 146988.96
Schneider 57.52 -2.48 75.29 48.57 3.36 19.78 35851.99 HonHaiPrc 86.00 2.00 99.70 77.90 4.36 9.09 41150.9
CanadPcR 196.81 -0.08 245.05 172.01 0.71 22.11 22638.98 NTTDCMo 2394.5 66.50 2873.5 1731 2.98 19.61 79620.58 ColgtPlm 65.78 0.10 71.56 50.84 2.24 24.49 58995.05 Perrigo♦ 148.25 -1.14 215.73 140.40 0.32 147.74 21704.11
SocGen 45.31 0.13 48.77 31.85 2.77 11.92 38744.17 TaiwanSem 142.50 3.50 155.00 112.50 3.12 12.32 113061.65
CanImp 101.50 1.22 107.32 83.10 4.08 11.45 30157.6 Panasonic 1389.5 -8.00 1853.5 1177.5 1.20 96.37 27739.72 Comcast 61.49 0.63 64.99 50.01 1.58 19.38 128791.38 Pfizer 33.44 0.67 36.46 28.47 3.27 25.28 205881.69
Total 46.79 -0.21 50.30 36.92 5.55 122.62 121033.11
CanNatRs 32.31 -0.03 42.46 25.01 2.81 82.85 26441.57 Seven & I 5625 105.00 5998 4117.5 1.32 28.86 40579.74 Thailand (THB) ConocPhil 54.62 0.57 71.37 41.10 5.33 -67.06 67436.15 Phillips66 92.09 0.56 94.12 57.33 2.29 10.82 49124.52
UnibailR 246.15 3.05 262.00 193.05 3.98 13.90 25755.66
CanNatRy 80.14 0.43 88.89 69.90 1.47 19.03 47502.35 ShnEtsuCh 7049 86.00 8529 5801 1.52 21.39 24788.77 PTT Explor 253.00 -3.00 382.00 240.00 4.26 -77.49 20185.58 Corning♦ 18.81 0.08 25.16 15.42 2.43 12.37 22251.94 PhilMorris 87.45 0.06 90.08 75.27 4.57 18.91 135485.91
Vinci 60.86 -0.70 62.60 39.65 2.92 17.27 38722.29
Enbridge 47.89 0.46 66.14 46.55 3.61-124.57 30928.33 Softbank 6518 -19.00 7886 5370 0.63 13.61 63689.97 United Arab Emirates (Dhs) Costco 161.24 -0.18 164.47 117.03 0.92 30.68 70862.99 PNCFin 95.43 -0.08 100.52 81.84 2.06 12.93 49425.14
Vivendi 19.99 0.06 24.83 19.05 10.46-221.91 29001.52
GtWesLif♦ 36.12 -0.17 37.70 30.42 3.53 13.30 26823.56 Sony 3227 50.00 3970 2315 0.71 38.11 33149.04 Emirtestele 16.50 1.50 16.50 9.41 3.88 17.98 35515.8 CrownCstl 86.89 0.98 89.44 74.45 3.75 57.02 29001.39 PPG Inds♦ 106.38 0.64 118.95 82.93 1.30 25.03 28644.86
ImpOil 43.63 0.25 55.37 40.55 1.08 22.14 27653.29 Germany (€)
SumitomoF 4770 73.00 5770 3902 3.31 12.24 54893.55 United Kingdom (p) CSX♦ 28.27 -0.17 37.67 24.47 2.39 14.14 27556.81 Praxair 111.74 -1.06 132.95 98.55 2.49 22.91 31828.64
Manulife 22.33 0.35 24.20 18.91 2.89 17.82 32916.47 Allianz 167.55 -0.10 170.15 129.35 4.28 11.34 81221.93
Takeda Ph 6090 107.00 6657 4821 3.01 -30.68 39163.93 AscBrFd 3544 -2.00 3571 2705.75 0.96 49.66 42239.78 CVS 95.16 1.07 113.65 81.37 1.38 21.52 105372.41 Prec Cast 231.70 0.16 245.05 186.17 0.05 24.49 31876.86
Potash 26.87 -0.16 47.10 25.80 7.22 11.46 16778.41 BASF 76.77 -1.57 97.22 63.00 3.67 14.40 74795.13
TokioMarine 4610 70.00 5504 3703 2.38 18.01 28420.65 AstraZen 4515.5 13.00 4931.68 3746 4.11 51.01 85920.05 Danaher 96.81 0.42 97.62 81.25 0.52 27.06 66342.27 Priceline 1269.48 20.63 1476.52 990.69 - 26.68 63199.64
RylBkC 76.90 0.82 83.71 68.05 3.92 11.84 85395.75 Bayer 124.85 -1.45 146.45 106.80 1.88 26.51 109516.44
Toyota 7762 105.00 8783 6650 2.96 10.43 210860.93 Aviva 515.00 3.50 578.68 428.40 3.51 13.48 31369.48 Deere 78.98 -0.59 98.23 71.85 2.93 12.56 25918.57 ProctGmbl 75.72 0.88 93.89 65.02 3.43 25.46 206001.77
Suncor En♦ 37.50 0.60 40.93 30.89 2.22 570.48 40537.96 BMW 103.30 - 123.75 72.05 2.94 11.52 65963.85
Mexico (Mex$) Barclays♦ 233.50 10.30 289.90 215.40 2.78 0.78 59048.82 Delphi 88.18 0.30 90.57 66.10 1.13 18.69 24698.17 Prudntl♦ 86.88 0.33 92.60 73.19 2.65 11.40 39009.12
ThmReut♦ 54.98 0.97 55.92 44.37 3.23 16.43 31577.96 Continental 226.35 -2.35 234.25 161.20 1.44 17.87 48021.55
AmerMvl 13.60 0.17 17.37 13.21 1.78 25.63 34994.28 BG 1040 8.50 1301.62 780.55 1.83 -20.09 53514.24 Delta 46.83 0.37 52.00 34.61 0.86 13.58 36830.56 PublStor 242.37 2.31 242.59 178.42 2.54 40.89 41904.77
TntoDom 55.21 0.67 57.82 47.75 3.52 13.36 76549.62 Daimler 83.21 -1.52 96.07 62.06 3.08 11.02 94429.13
FEMSA UBD 160.33 -0.10 169.74 119.19 0.66 32.25 34725.33 BP♦ 384.55 -0.70 499.25 252.55 7.00 -14.05 106042.21 DirectTV 93.55 1.36 95.51 82.04 - 16.82 47176.52 Qualcomm♦ 48.82 0.03 75.72 47.52 3.66 15.25 73380.9
TrnCan 42.95 0.81 59.50 40.68 4.71 18.37 22769.45 Deut Bank 24.46 0.16 33.42 22.95 3.21 -7.66 35786.51
WalMrtMex 43.35 -0.53 47.00 28.26 1.21 34.26 45886.01 BrAmTob 3886.5 18.50 3931.5 3231.5 3.81 18.04 109077.97 DiscFinServ 56.69 -0.08 66.73 50.20 1.82 11.76 24231.92 Raytheon 124.58 0.55 128.20 95.32 2.09 18.51 37510.79
ValeantPh 126.60 6.25 347.84 92.65 - 54.44 32299.99 Deut Tlkm 17.31 -0.15 17.63 12.40 3.02 34.14 84560.9
BSkyB 850.50 -12.00 954.00 782.50 3.80 10.88 23005.52 Disney 115.01 1.54 122.08 90.00 1.56 23.59 190123.72 Regen Pharm 541.79 -2.71 605.93 383.87 - 107.76 55119.58
DeutsPost 27.12 -0.55 31.19 22.93 - 21.69 34842.65 Netherlands (€)
China (HK$) BT 492.25 -4.20 502.60 385.60 2.32 18.55 62009.85 DominRes♦ 67.20 -0.17 80.89 66.52 3.76 22.39 40006.42 ReynoldsAm 46.10 -0.15 49.56 31.35 2.94 17.48 65880.15
E.ON 9.03 0.03 15.46 7.08 1.62 -1.86 19164.58 Altice 14.27 -0.27 143.20 12.75 - 244.22 12430.57
AgricBkCh 3.00 0.03 4.55 2.87 7.47 4.50 11895 Compass 1169 15.00 1223.36 963.00 2.31 22.70 28942.96 DowChem 52.90 0.77 53.77 35.11 3.16 14.35 61263.59 Salesforce 80.45 0.76 82.90 53.44 - -615.28 53418.8
Fresenius Med 78.25 0.05 83.17 57.70 1.02 24.27 25822.78 ASML Hld 87.66 0.19 104.85 70.25 0.84 26.00 40293.53
Bk China 3.50 0.06 5.68 3.25 6.68 5.15 37752.95 Diageo 1912.5 2.50 2055 1592.5 2.80 20.22 72424.77 DukeEner♦ 67.70 -0.07 89.97 65.65 4.71 19.79 46596.53 Schlmbrg♦ 77.30 0.15 95.13 66.57 2.44 29.39 97483.32
Fresenius SE 68.77 -0.72 70.00 40.85 0.67 28.65 39752.21 Heineken 84.23 0.07 85.90 56.14 1.31 23.77 51464.05
BkofComm 5.55 0.15 8.61 5.17 5.99 5.09 25064.99 GlaxoSmh♦ 1351 -4.50 1645 1227.5 5.92 6.69 98991.41 DuPont♦ 66.74 -0.60 76.61 47.11 2.70 19.29 58491.4 Shrwin-Will♦ 277.30 1.23 294.35 218.27 0.92 26.73 25816.77
HenkelKgaA 92.13 1.28 99.44 75.76 1.46 21.58 25389.02 ING 12.95 -0.05 16.00 9.68 - 27.34 53155.26
BOE Tech 2.22 -0.08 4.78 1.17 1.72 31.39 56.97 Glencore 94.48 -2.23 325.70 66.67 12.11-219.72 20475.08 Eaton 58.16 - 73.82 49.21 3.66 13.55 26916.45 SimonProp 187.40 1.16 208.14 170.99 3.05 35.26 57984.95
Linde 141.55 -23.70 195.55 140.05 2.33 22.05 27887.66 Unilever♦ 41.21 -0.32 42.81 30.28 2.82 24.20 74956.7
Ch Coms Cons 9.02 0.06 17.00 7.35 2.64 8.13 5151.4 HSBC♦ 539.00 9.50 674.57 478.35 6.22 10.63 158926.22 eBay 29.32 -0.27 29.83 22.11 - 11.92 35203.17 SouthCpr 25.83 0.10 33.31 23.41 1.62 20.39 20286.27
MuenchRkv 190.70 -0.05 206.50 154.20 4.25 9.82 33750.01 Norway (Kr)
Ch Evrbrght 3.52 0.02 5.65 3.22 6.51 4.61 3118.75 ImpTob 3616 28.00 3665 2680 3.54 18.10 52191.23 Ecolab 118.94 -0.22 122.48 97.78 1.10 32.08 35123.4 Starbucks 61.21 -0.19 64.00 39.22 1.04 33.80 90877.18
SAP 74.73 0.14 75.33 53.01 1.54 27.68 97383.26 DNB 115.00 0.60 143.00 100.90 3.48 8.03 21627.42
Ch Rail Cons 10.42 0.12 17.70 8.10 1.77 9.05 2790.71 LlydsBkg 74.71 1.75 89.35 70.55 2.01 44.55 80369.34 EMC 25.45 0.11 30.92 22.66 1.80 21.47 49343.41 StateSt 72.12 -0.46 81.26 63.97 1.76 16.98 29099.42
Siemens 96.94 -1.20 106.35 77.91 3.42 13.93 90592.37 Statoil 134.40 - 161.70 113.90 5.41 -11.38 49481.78
Ch Rail Gp 6.56 0.12 12.30 5.35 1.46 10.95 3560.21 Natl Grid♦ 928.30 2.50 954.00 806.40 4.62 16.18 52321.14 Emerson♦ 49.45 -0.56 65.16 42.21 3.78 12.42 32364.58 Stryker 96.58 0.12 105.34 89.81 1.42 31.55 36267.94
Volkswgn 139.65 -1.65 254.50 95.00 3.59 10.61 43712.72 Telenor 151.20 -0.30 186.10 143.70 2.54 36.63 26212.26
ChConstBk 5.38 0.05 7.98 5.02 6.89 4.83 166842.41 Prudential 1564 24.50 1761.5 1045.99 2.36 15.92 60551.78 EOG Res 83.46 0.03 101.36 68.15 0.80 -12.06 45878.56 Sychrony Fin 32.09 0.26 36.40 27.92 - 12.27 26757.47
China Vanke RMB 16.58 1.51 16.58 10.46 3.02 11.39 25180.45 Hong Kong (HK$) Qatar (QR) EquityResTP 80.39 0.57 82.53 61.90 2.67 35.08 29283.01 Target♦ 72.49 -0.01 85.81 68.15 2.85 16.64 44657.58
RBS 312.20 9.80 414.00 295.90 - -14.00 54412.78
ChinaCitic 4.94 0.05 7.40 4.36 - 4.63 9483.06 AIA 47.75 1.45 58.20 38.85 0.90 22.30 74205.5 QatarNtBk 160.00 -9.00 221.00 159.90 4.66 10.08 30740.87 Exelon♦ 27.71 0.40 38.93 27.28 4.45 12.39 25476.53 TE Connect♦ 67.55 0.46 73.73 54.32 1.82 22.58 26094.96
ReckittB 6353 123.00 6450 4895 2.19 26.99 67714.8
ChinaLife 26.90 0.15 41.00 23.40 1.80 16.20 25819.76 BOC Hold 24.25 0.50 33.70 22.30 4.42 10.35 33071.87 ExpScripts 86.33 0.85 94.61 68.06 - 26.96 58382.91 Telsa Mtrs 234.75 4.49 286.65 181.40 - -44.31 30740.82
Russia (RUB) RELX 1204 6.00 1208.2 988.50 2.16 27.67 37367.49
ChinaMBank 18.56 0.34 26.85 15.36 4.44 6.60 10990.94 Ch OSLnd&Inv 27.35 1.65 34.05 20.70 1.93 7.87 34787.05 ExxonMb♦ 81.58 -0.08 95.33 66.55 3.46 17.33 339612.94 TexasInstr 58.50 0.38 59.99 43.49 2.31 20.83 59343.11
Gzprm neft 137.42 -0.58 166.94 113.73 6.00 7.19 48848.87 RioTinto 2214.5 6.00 3280 1358.25 6.16 22.03 45976.39
ChinaMob 90.40 2.30 118.00 85.00 3.08 14.21 238756.75 ChngKng 51.80 1.25 77.55 50.10 - 11.40 25789.29 Facebook 106.18 1.94 110.65 72.00 - 107.86 239938.82 TheTrvelers 115.49 0.92 116.48 95.21 2.00 10.32 35134.26
Lukoil 2559 24.90 3297.7 2053.6 6.86 22.45 32682.78 RollsRoyce 604.00 -2.50 1061 504.50 3.82 -44.42 16719.48
ChinaPcIns 32.15 0.25 47.10 24.80 1.86 15.70 11509.31 Citic Ltd 14.00 0.40 16.40 11.64 1.47 6.90 52533.23 Fedex 158.20 -0.34 185.19 130.01 0.53 42.52 44672.43 ThrmoFshr 138.05 -0.35 141.25 117.10 0.43 28.25 55095.44
MmcNrlskNckl 9054 134.00 12247 7962 14.97 11.12 21513.64 RylDShlA♦ 1644 1.00 2239.5 1497.5 7.64 99.37 97563.37
ChMinsheng 7.49 0.06 11.88 6.70 3.04 4.83 6698.81 Citic Secs 18.10 0.32 40.50 12.82 1.92 8.08 5319.28 FordMtr 14.50 0.17 16.74 10.44 3.94 12.23 56517.78 TimeWrnr♦ 70.55 0.57 91.34 65.25 1.93 16.31 57539.27
Novatek 607.60 -13.40 646.30 398.50 9.73 54.88 27701.65 SABMill♦ 4052 20.50 4090 2773 1.83 33.57 98789.84
ChMrchSecs RMB 20.67 0.42 40.00 13.85 2.02 11.86 15515.89 CK Hutchison 103.30 1.60 174.90 97.50 3.39 4.25 51429.18 Franklin 41.80 -0.12 59.43 36.10 1.43 12.78 25142.26 TimeWrnrC 186.01 1.24 194.22 134.21 2.00 27.94 52677.58
Rosneft 264.70 -0.30 294.20 183.95 3.13 7.08 42123.73 Shire 4636 -10.00 5870 4305 0.32 13.68 41346.72
Chna Utd Coms RMB 6.21 -0.01 10.74 3.91 1.08 42.19 20571.72 CNOOC 8.83 0.25 13.78 7.41 6.16 7.98 50853.01 GenDyn 147.21 0.75 153.76 130.91 2.23 16.69 46537.26 TJX Cos♦ 70.56 -0.04 76.93 63.53 1.00 22.36 47583.61
Sberbank 101.30 -1.60 110.70 47.21 - 7.03 32835.47 StandCh 556.70 -0.50 1166 546.10 9.21 13.01 21367.52
ChShenEgy 12.48 0.38 24.40 11.30 7.19 8.63 5471.04 HangSeng 142.20 1.70 162.10 125.00 3.77 10.63 35067.92 GenElectric 29.95 0.01 30.99 19.37 3.05 58.42 302771.71 T-MobileUS♦ 35.89 0.39 43.43 24.26 - 59.78 29287.58
Surgutneftegas 34.00 0.50 39.80 21.82 - 1.27 18239.19 Tesco 167.60 0.40 252.52 155.40 0.69 -2.41 20541.66
ChShpbldng RMB 10.16 0.10 20.19 6.22 0.37-620.41 28514.38 HK Exc&Clr 204.00 2.00 311.40 166.20 1.87 36.50 31801.53 GenMills 58.31 0.55 59.87 47.43 2.85 28.14 34852.95 UnionPac♦ 83.82 -0.13 124.52 79.31 2.55 14.57 71592.39
Saudi Arabia (SR) Vodafone♦ 222.00 -2.25 258.00 201.25 5.05 -41.57 88750.62
ChStConEng RMB 6.42 0.22 12.52 4.17 2.68 8.22 29999.59 MTR 36.65 0.65 40.00 30.50 2.74 14.06 27679.21 GenMotors 35.97 -0.23 39.00 24.62 3.65 13.28 55975.84 UPS B♦ 103.73 0.72 114.40 93.64 2.74 23.96 72210.88
AlRajhiBnk 50.76 0.49 69.00 48.40 3.66 12.93 21975.49 WPP 1536 1.00 1616 1271 2.49 15.87 29939.44
ChUncHK 9.68 0.08 16.00 9.31 2.54 20.54 29901.04 SandsCh 27.20 1.00 45.10 22.85 7.00 15.47 28311.18 GileadSci 105.01 -0.95 123.37 85.95 0.81 9.71 151338.33 USBancorp 43.98 0.09 46.26 38.81 2.26 14.02 76928.81
SHK Props 97.55 2.25 137.60 93.25 2.36 9.28 36407.39 Natnlcombnk 53.74 0.25 72.75 48.80 - 12.25 28557.77 United States of America ($)
CNNC Intl RMB 9.61 0.07 14.38 4.07 - 27.02 5843.85 GoldmSchs♦ 191.28 1.26 218.77 167.49 1.30 12.64 81587.88 UtdHlthcre 114.84 2.13 126.21 95.00 1.51 18.34 109458.5
Tencent 154.30 - 171.00 104.50 0.23 43.00 187120.28 SaudiBasic 89.82 0.02 110.50 70.25 5.69 11.47 71789.01 3M♦ 156.73 0.15 170.50 134.00 2.49 20.41 96500.69
CSR♦ 10.18 0.26 20.70 7.80 - 22.61 5739.73 Google 779.50 16.65 782.90 490.91 - 36.19 227090.01 UtdTech♦ 96.86 0.81 124.45 85.50 2.58 15.31 85916.85
SaudiTelec 67.66 0.74 73.25 52.75 5.88 13.91 36051.68 AbbottLb 45.22 0.30 51.74 39.00 2.07 27.04 67455.57
Daqin RMB 8.85 0.17 15.15 7.88 5.43 9.31 20562.56 India (Rs) Halliburton♦ 40.01 0.34 50.20 30.93 1.79 130.79 34241.09 ValeroEngy♦ 71.76 -0.10 73.88 43.45 2.04 8.03 34552.69
Singapore (S$) Abbvie 58.15 -0.01 71.60 45.45 3.30 33.84 95052.36
Gree Elec Apl 0.25 - 0.45 0.13 - -2.76 377.28 Bhartiartl 322.75 -11.60 452.45 315.60 0.69 22.20 19386.35 HCA Hold 69.53 1.47 95.49 43.91 - 14.63 28344.69 Verizon 45.58 0.13 50.86 38.06 4.83 18.39 185438.89
DBS 16.55 0.05 21.50 16.00 3.57 12.73 29405.15 Accenture 107.80 0.58 109.86 81.66 1.85 24.48 86910.87
GuosenSec RMB 18.75 -0.17 34.94 7.00 1.07 11.36 24028.71 HDFC Bk 1083 5.25 1128 916.00 0.74 24.74 41020.91 Hew-Pack 12.64 0.10 18.66 11.03 5.01 5.34 22729.56 VertexPharm 129.25 -0.11 143.45 97.45 - -47.40 31758.93
JardnMt US$ 50.20 0.30 67.88 45.02 2.77 12.20 35258.2 Ace 115.42 0.57 117.89 96.00 2.27 14.19 37417.03
HaitongSecs 13.58 0.20 27.90 10.00 2.27 8.37 5972.51 Hind Unilevr 833.40 24.95 981.00 744.50 1.75 38.33 27097.98 HiltonWwde♦ 23.22 - 31.60 20.93 0.30 30.87 22928.63 VF Cp 65.21 0.51 77.83 61.17 1.95 27.34 27800.89
JardnStr US$ 27.13 0.13 36.95 26.11 0.95 10.05 30271.11 Actavis 298.98 -2.94 317.72 201.91 - -39.48 117333.1
Hngzh HikVDT RMB 33.77 0.18 56.48 20.21 1.18 24.02 16654.94 HsngDevFin 1224.7 13.50 1402.3 1060.1 1.23 21.19 29041.89 HomeDep♦ 133.73 0.44 135.47 92.17 1.63 25.71 169553.76 Viacom 49.71 -0.08 78.00 36.32 2.92 10.57 17257.65
OCBC 8.67 - 10.92 8.62 4.09 9.78 25333.28 Adobe 92.23 0.77 92.66 68.98 - 96.58 46001.77
Hunng Pwr 7.03 0.27 11.90 6.70 6.62 6.64 4262.31 ICICI Bk 273.90 -0.85 393.40 247.70 1.83 12.66 23907.77 Honywell♦ 104.40 0.45 107.41 87.00 1.97 18.40 80460.18 Visa Inc 79.40 0.39 81.01 60.00 0.60 31.02 154547.53
SingTel 3.83 - 4.57 3.43 4.50 16.01 43358.4 AEP♦ 55.99 -0.02 65.38 52.29 3.76 15.63 27480.87
IM Baotou Stl RMB 3.75 - 7.50 3.16 - -47.94 9225.93 Infosys 1079 -8.90 2336 932.65 3.46 19.37 37057.59 HumanaInc 170.87 2.21 219.79 137.18 0.66 19.78 25326.28 Walgreen♦ 83.80 -0.23 97.30 66.46 1.60 21.38 91240.9
UOB■ 19.45 0.06 25.05 18.20 4.30 10.01 22125.06 Aetna 105.86 3.11 134.40 85.62 0.92 16.33 36913.38
In&CmBkCh 4.74 0.05 7.10 4.30 6.64 5.07 53067.61 ITC 346.25 3.70 409.95 294.00 1.87 26.75 41772.88 IBM♦ 140.42 1.00 176.30 131.65 3.40 9.69 136226.16 WalMartSto 58.87 0.03 90.97 56.30 3.20 12.76 188734.11
Aflac 65.84 0.60 66.23 51.41 2.35 11.59 28096.52
IndstrlBk RMB 15.70 0.05 21.42 11.75 3.63 5.99 39699.28 L&T 1364.85 -9.75 1893.8 1326 1.13 24.67 19097.95 South Africa (R) IllinoisTool 93.75 -0.23 100.14 78.79 2.13 18.57 34077.35 Wellpoint 128.71 0.94 129.96 81.84 1.86 11.92 34744.16
AirProd 137.93 1.04 158.20 123.66 2.31 23.60 29713.79
Kweichow RMB 213.80 -0.51 290.00 158.25 2.05 16.70 41974.05 OilNatGas 235.60 1.45 389.00 217.70 4.23 10.19 30288.15 Firstrand 46.29 -0.73 58.47 46.00 4.67 10.28 17991.54 Illumina 186.37 2.47 242.37 130.00 - 54.74 27284.57 WellsFargo 55.34 0.24 58.77 47.75 2.60 13.46 284080.1
Alexion 179.51 1.07 208.88 142.02 - 163.59 40447.97
Midea 2.05 0.01 2.68 1.65 4.67 13.47 56.86 RelianceIn 965.90 0.05 1067.85 796.45 1.04 11.49 47008.02 MTN Grp 145.50 0.34 250.00 132.01 9.74 7.67 18605.17 Intcntl Exch 258.28 -1.56 266.74 202.24 0.83 24.58 28344.48 Williams Cos 36.41 -0.15 61.38 33.48 6.50 81.81 27299.68
Allstate♦ 63.59 0.83 72.87 54.12 1.84 11.14 24628.8
New Ch Life Ins 32.75 0.65 56.55 27.05 0.78 9.09 4368.52 SBI NewA 250.20 - 336.00 220.15 1.41 10.26 29184.78 Naspers N 2113 -41.84 2270 1283 0.24 50.54 61440.03 Intel 35.11 0.34 37.90 24.87 2.68 15.12 165660.5 Yahoo 33.60 -0.22 51.68 27.20 - 132.35 31725.61
Altria 57.82 0.22 61.74 47.31 3.65 21.89 113368.45
PetroChina 5.65 0.14 11.04 5.10 3.43 19.79 15376.88 SunPhrmInds 729.25 -0.40 1200.8 704.00 - 60.99 26369.56 South Korea (KRW) Intuit 101.59 1.39 109.21 79.63 1.01 63.59 26820.2 Yum!Brnds 73.99 1.48 95.90 66.35 2.20 35.58 31907.57
Amazon 675.51 10.71 682.77 285.25 - 980.64 316653.42
PingAnIns 43.30 0.85 62.90 32.53 1.92 11.46 41596.95 Tata Cons 2361.9 -2.80 2812.1 2332.5 1.69 22.11 69931.69 HyundMobis 247000-2500.00 271500 185500 1.18 12.84 20764.22 John&John♦ 102.44 1.20 108.99 81.79 2.81 19.78 283445.71 Venezuela ()
AmerAir 42.22 0.96 56.20 34.10 0.94 6.10 26612.34
PngAnBnk RMB 11.75 0.01 17.50 9.30 1.48 7.47 21676.26 Indonesia (Rp) KoreaElePwr 49750 800.00 54000 38750 1.00 7.07 27581.25 JohnsonCn 45.80 -0.20 54.52 38.48 2.26 21.14 29663.79 Bco de Vnzla 105.00 0.95 143.95 27.00 - - 28366.6
AmerExpr 71.72 0.08 94.89 70.21 1.52 12.84 70585.79
Pwr Cons Corp RMB 8.17 0.17 20.00 4.14 1.22 16.07 4213.57 Bk Cent Asia♦ 13250 875.00 15600 11000 1.04 19.78 23702.34 SK Hynix 31350 -250.00 51700 30050 0.93 5.09 19709.71 JPMrgnCh 67.11 0.43 70.61 50.07 2.49 11.50 247022.21 Bco Provncl 3300 100.00 4400 850.00 1.04 44.99 26357.83
AmerIntGrp 64.10 0.52 64.93 48.68 1.02 18.70 79292.5
SaicMtr RMB 19.57 0.44 29.18 14.00 6.65 7.48 33721.48 SmsungEl 1321000 37000 1510000 1033000 1.51 9.97 147521.06 Kimb-Clark 120.92 1.77 122.97 103.04 2.86 73.25 43893.28 Mrcntl Srvcs 4800 -175.00 5900 1000.00 0.17 35.73 21120.48
Israel (ILS) AmerTower 100.55 1.17 105.09 86.83 1.68 75.53 42589.98
ShenwanHong 0.18 0.00 0.41 0.17 - -2.42 57.98 Spain (€) KinderM 22.81 -0.76 44.71 22.57 8.10 42.78 50900.85
TevaPha♦ 237.10 -7.80 275.90 213.20 2.13 29.88 58900.93 Amgen♦ 161.79 0.69 181.81 130.09 1.83 19.45 122038.93
ShgPdgBk RMB 18.66 0.01 19.70 11.91 4.06 7.05 54398.37 Kraft 88.19 -0.11 91.32 53.33 1.93 125.72 52233.16 Closing prices and highs & lows are in traded currency (with variations for that
Italy (€) BBVA 7.86 0.00 9.77 7.21 2.13 19.10 53061.89 Anadarko 60.06 0.16 95.94 57.86 1.79 -5.26 30519.1
Sinopec Corp 4.88 0.13 7.79 4.46 5.01 22.84 16059.94 Kroger 38.05 0.39 39.43 27.32 0.91 20.12 37039.18 country indicated by stock), market capitalisation is in USD. Highs & lows are
Enel 4.16 -0.02 4.50 3.36 3.52 66.23 41454.42 BcoSantdr 5.17 0.00 7.42 4.55 10.03 9.51 79175.07 Aon Cp 94.94 0.20 107.08 86.38 1.15 21.82 26005.66
Sinopec Oil RMB 8.41 -0.12 14.23 4.10 - -242.51 591.46 L Brands♦ 95.78 0.37 101.11 75.11 1.69 25.77 27812.47 based on intraday trading over a rolling 52 week period.
ENI 15.25 -0.17 17.66 12.98 6.58 -19.13 58788.11 CaixaBnk 3.53 0.06 4.62 3.32 2.37 28.48 21807.58 Apple 118.07 -0.23 134.54 92.00 1.67 12.89 658279.33
Denmark (kr) Iberdrola 6.61 -0.02 6.70 5.31 2.45 16.20 44411.13 LasVegasSd 43.72 -0.34 63.47 36.53 5.57 15.82 34864.57 ♦ ex-dividend
Generali 17.88 -0.12 19.21 15.16 3.51 13.82 29527.95 ArcherDan♦ 36.56 0.07 53.91 35.60 2.94 12.71 21816.81
DanskeBk 189.80 6.00 218.00 155.50 3.03 26.83 27221.04 Inditex 33.97 -0.10 34.60 21.56 1.19 38.42 112287.8 LibertyGbl 43.30 0.89 58.66 41.31 - -28.11 10941.7 ■ ex-capital redistribution
IntSPaolo 3.24 -0.01 3.65 2.22 2.26 17.83 54506.67 AT&T 33.72 0.05 36.45 30.97 5.54 35.77 207445.44
MollerMrsk 10730 -50.00 16450 9560 2.83 9.41 16238.28 Repsol 12.28 -0.07 18.75 9.90 8.15 34.38 18233.68 Lilly (E)♦ 85.70 3.66 92.85 67.60 2.31 39.01 94962.16 # price at time of suspension
Luxottica 63.60 0.30 67.80 42.22 1.18 36.93 32615.43 AutomData 87.51 1.25 90.67 64.29 2.23 29.31 40716.08
NovoB 391.90 5.90 415.00 256.00 1.33 29.32 114938.01 Telefonica♦ 11.59 -0.09 14.31 10.38 3.61 18.64 59776.82 Lockheed♦ 220.57 1.41 227.91 181.91 2.70 19.70 67780.17
Unicred 5.53 -0.03 6.61 4.82 2.27 16.53 34971.48 Avago Tech 133.03 2.58 150.50 89.72 1.05 36.56 36714.74
Lowes 76.80 0.20 78.13 62.91 1.22 26.90 71057.86

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 16.58 15.07 1.51 10.02 2.21 15.4 21.29 DirectTV 93.55 92.19 1.36 1.48 - - 0.42 Dec 01 date Coupon S* M* F* price yield yield yield US Dec 01 date Coupon S* M* F* price yield yield yield US
NXP 93.47 93.46 0.01 0.01 10.13 12.2 19.39 Sinopec Oil 8.41 8.53 -0.12 -1.41 -1.37 -14.0 -14.53 High Yield US$ US$
Volkswgn 141.30 141.30 0.00 0.00 14.15 11.1 9.83 Hew-Pack 12.64 12.54 0.10 0.80 -2.00 -13.7 3.27 Windstream Services, LLC 11/17 7.88 B+ B2 BB 104.73 5.30 0.00 0.36 4.46 Burlington Resources, Inc. 02/26 6.88 A A2 A 119.09 4.57 0.00 0.19 2.41
Altice 14.27 14.54 -0.27 -1.86 1.33 10.3 -9.40 GuosenSec 18.75 18.92 -0.17 -0.90 -2.40 -11.3 13.77 High Yield Euro Merrill Lynch & Co., Inc. 09/26 6.22 BBB+ Baa3 A- 114.39 4.57 0.00 0.16 2.41
Compass 1169.00 1154.00 15.00 1.30 89.00 8.2 4.54 Pwr Cons Corp 8.17 8.00 0.17 2.13 -1.03 -11.2 -4.44 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Cummins Inc. 02/27 6.75 A+ A2 A 119.71 4.54 0.00 0.58 -
Daimler 84.73 84.73 0.00 0.00 6.28 8.0 6.07 Ch Coms Cons 9.02 8.96 0.06 0.67 -1.08 -10.7 -15.86 Korea Electric Power Corporation 08/27 6.75 AA- Aa3 AA- 98.85 7.01 0.00 0.02 -
MollerMrsk 10780.00 10780.00 0.00 0.00 770.00 7.7 7.20 Petrobras 9.41 9.41 0.00 0.00 -1.04 -10.0 -0.85 Emerging US$ FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa3 A- 119.02 4.84 0.00 0.08 -
Nmrcble-SFR 40.85 40.53 0.33 0.80 2.89 7.6 -0.85 Gzprm neft 137.42 138.00 -0.58 -0.42 -14.58 -9.6 1.23 Peru 05/16 8.38 BBB+ A3 BBB+ 121.00 1.23 0.00 0.00 0.39 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 109.07 5.06 0.00 0.06 -
Telsa Mtrs 234.75 230.26 4.49 1.95 16.50 7.6 13.31 Vale 13.17 13.17 0.00 0.00 -1.30 -9.0 -25.32 Mexico 09/16 11.40 BBB+ A3 BBB+ 107.66 1.49 0.06 0.52 0.65
Brazil 01/18 8.00 BB+ Baa3 BBB- 105.24 5.33 -0.07 0.08 4.48 Euro
BMW 103.30 103.30 0.00 0.00 6.54 6.8 6.76 Sberbank 101.30 102.90 -1.60 -1.55 -8.68 -7.9 11.90 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 96.84 2.96 0.00 -0.16 -
Barclays 233.50 223.20 10.30 4.61 13.45 6.1 -0.99 CNNC Intl 9.61 9.54 0.07 0.73 -0.80 -7.7 -7.24 Russia 07/18 11.00 BB+ Ba1 BBB- 119.46 3.27 0.00 -0.01 2.43
Peru 03/19 7.13 BBB+ A3 BBB+ 115.20 2.36 0.00 0.09 0.76 BHP Billiton Fin Ltd 09/27 3.25 A+ A1 A+ 111.98 2.09 0.00 -0.01 -
Illumina 186.37 183.90 2.47 1.34 10.08 5.7 29.89 ChinaMBank 18.56 18.22 0.34 1.87 -1.54 -7.7 -8.80 TeliaSonera 09/27 3.00 A- A3 A- 110.32 2.01 -0.02 -0.14 -
Continental 228.70 228.70 0.00 0.00 12.00 5.5 4.45 Cielo 35.11 35.11 0.00 0.00 -2.79 -7.4 -4.32 Brazil 01/21 7.88 BB+ Baa3 BBB- 97.17 5.59 0.00 0.33 3.99
Turkey 03/21 5.63 - Baa3 BBB- 106.42 4.31 0.00 0.39 2.71 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 111.18 2.15 0.00 0.02 -
Hind Unilevr 833.40 808.45 24.95 3.09 42.20 5.3 4.09 Bradesco 24.02 24.02 0.00 0.00 -1.88 -7.3 2.47
Poland 04/21 5.13 A- A2 A- 111.71 2.79 0.00 0.21 1.19 Yen
Inditex 33.97 34.06 -0.10 -0.28 1.67 5.2 -0.41 ChShpbldng 10.16 10.06 0.10 0.99 -0.79 -7.2 -8.14
Colombia 07/21 4.38 BBB Baa2 BBB 102.05 4.00 0.00 0.10 2.40 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
AXA 25.63 25.61 0.02 0.08 1.15 4.7 5.36 IM Baotou Stl 3.75 3.75 0.00 0.00 -0.29 -7.2 -4.82
MylanNV 52.73 51.30 1.43 2.78 2.34 4.6 19.71 Chna Utd Coms 6.21 6.22 -0.01 -0.16 -0.47 -7.0 -6.05 Turkey 04/26 4.25 - Baa3 BBB- 94.61 4.98 0.00 0.45 2.82 £ Sterling
Pfizer 33.44 32.77 0.67 2.03 1.47 4.6 -1.32 PTT Explor 253.00 256.00 -3.00 -1.17 -18.00 -6.6 -8.00 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 123.81 4.00 0.05 0.04 1.84
IntSPaolo 3.25 3.25 0.00 0.00 0.14 4.5 2.27 BHPBilltn 18.75 18.09 0.66 3.65 -1.32 -6.6 -18.55 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- 107.04 3.21 -0.01 -0.13 1.06
LlydsBkg 74.71 72.96 1.75 2.40 3.11 4.3 1.96 ChMrchSecs 20.67 20.25 0.42 2.07 -1.45 -6.6 8.22 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.65 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ - BBB+ 110.03 2.93 0.00 -0.13 1.33 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 115.43 3.88 0.00 -0.16 1.73
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
Dec 01 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Dec 01 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.25 16-12-2008 1.00 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 15.71 -0.42 16.13 53.29 10.88 Dec 01 Price £ Yield Day Week Month Year High Low £m
US Prime 3.25 16-12-2008 3.25 3.25 3.25 Markit IBoxx VXD 15.67 -0.16 15.83 56.32 7.04 Tr 2pc '16 100.22 0.41 -6.82 -12.77 -18.00 -8.89 101.73 100.22 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 173.34 -0.14 -0.78 -2.77 -0.77 -3.82 VXN 17.80 -0.30 18.10 46.72 11.15 Tr 1.75pc '17 101.51 0.42 -8.70 -8.70 -17.65 -27.59 102.68 101.38 0.29
Euro Repo 0.05 10-09-2014 0.15 0.05 0.25 Corporates( £) 298.16 -0.06 1.83 1.59 1.84 2.90 VDAX 20.89 0.16 20.73 29.94 - Tr 5pc '18 110.00 0.55 -8.33 -5.17 -8.33 -36.05 113.54 109.82 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 251.29 0.06 -0.24 0.32 -0.24 0.32 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.97 0.78 -4.88 -6.02 -10.34 -29.09 115.07 111.42 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 213.10 -0.05 0.72 0.19 0.73 0.60 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.58 1.01 -4.72 -5.61 -9.82 -22.31 119.04 114.67 0.33
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov(€) 227.65 -0.16 0.45 2.69 0.46 3.81 Tr 1.5pc '21 101.10 1.28 -3.76 -3.76 -7.91 -11.72 142.92 99.91 0.08
Gilts( £) 290.18 -0.09 1.01 1.59 1.01 3.48 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 116.14 1.31 -4.38 -5.76 -9.03 -16.03 119.85 113.65 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 242.79 0.03 -1.14 -3.21 -1.52 -4.41 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 128.74 1.64 -4.09 -5.75 -8.38 -12.30 134.70 124.47 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 297.63 -0.06 1.46 1.41 1.47 2.65 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 125.18 1.90 -3.06 -4.52 -6.40 -9.95 131.90 119.79 0.31
Dec 01 (Libor: Nov 30) night Day Week Month month month month year Overall ($) 225.84 0.05 -0.38 0.75 -0.38 0.75 Australia 10/18 3.25 103.14 2.12 0.02 -0.03 0.24 -0.32 Tr 4.25pc '32 127.95 2.22 -2.63 -3.90 -5.13 -6.72 136.85 121.93 0.35
US$ Libor 0.12800 -0.003 -0.003 -0.001 0.24300 0.41620 0.65990 0.98060 Overall( £) 289.71 -0.08 1.14 1.54 1.15 3.23 04/26 4.25 111.93 2.91 0.01 -0.07 0.12 -0.28 Tr 4.25pc '36 129.74 2.39 -2.45 -3.63 -4.78 -5.16 140.37 123.52 0.28
Euro Libor -0.18429 0.001 0.000 -0.001 -0.16571 -0.11714 -0.05000 0.04000 Overall(€) 222.77 -0.12 0.50 1.95 0.51 2.79 Austria 10/18 1.15 103.64 0.05 0.00 0.00 0.00 0.00 Tr 4.5pc '42 140.32 2.45 -2.39 -3.54 -5.41 -6.13 153.16 132.20 0.26
£ Libor 0.47938 -0.001 -0.003 0.000 0.50350 0.57075 0.72700 1.02525 Treasuries ($) 217.14 0.04 -0.46 0.96 -0.46 0.96 10/25 1.20 104.41 0.74 -0.01 -0.05 -0.12 0.00 Tr 3.75pc '52 133.57 2.37 -2.87 -4.44 -7.06 -10.57 145.21 121.95 0.22
Swiss Fr Libor -0.021 -0.84800 -0.83200 -0.79760 -0.71600 FTSE Belgium 06/18 0.75 101.95 -0.03 0.00 0.00 0.00 0.00 Tr 4pc '60 146.04 2.33 -2.51 -4.51 -6.80 -11.41 159.23 131.72 0.21
Yen Libor -0.001 0.03786 0.07357 0.11643 0.22257 Sterling Corporate (£) 111.44 0.17 - - 1.50 -1.86 06/25 0.80 100.24 0.77 -0.01 -0.04 -0.10 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor 0.000 -0.16000 -0.11300 -0.04000 0.04800 Euro Corporate (€) 106.78 0.01 - - 0.39 -2.47 Canada 11/17 0.25 99.28 0.63 -0.01 0.00 0.03 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.51000 0.60000 0.78500 Euro Emerging Mkts (€) 960.84 17.29 - - 4.62 -2.04 06/26 1.50 98.67 1.64 -0.06 -0.11 -0.12 0.00
US$ CDs
Euro CDs
0.000
0.000
0.20000
-0.19500
0.34000
-0.14500
0.55000
-0.05500
Eurozone Govt Bond 114.84 0.00 - - 0.31 0.99 Denmark 11/18 0.25 101.83 -0.37 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 1.75 110.05 0.70 -0.02 -0.05 -0.17 -0.24
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 99.41 1.25 0.00 0.01 0.14 0.00
Fixed Coupon Dec 01 chg % Return 1 month 1 year Yield
Dec 01 term notice month month month year Markit iTraxx 09/25 0.88 101.43 0.72 -0.01 -0.04 -0.12 0.00
1 Up to 5 Years 98.63 0.12 2371.29 0.37 1.48 0.88
Euro -0.25 -0.15 -0.25 -0.15 -0.27 -0.12 -0.22 -0.07 -0.15 0.00 -0.03 0.12 Crossover 5Y 287.29 -1.96 -13.73 -10.56 389.82 283.05 France 05/18 1.00 103.25 -0.31 0.00 0.00 0.00 0.00
2 5 - 10 Years 180.31 0.40 3263.04 1.22 3.10 1.51
Sterling 0.40 0.55 0.40 0.55 0.46 0.56 0.55 0.65 0.71 0.86 1.01 1.16 Europe 5Y 69.61 -0.01 -2.71 -1.37 95.40 68.47 11/20 0.25 101.37 -0.03 0.00 0.00 0.00 0.00
3 10 - 15 Years 206.36 0.62 3843.64 1.76 4.15 1.90
Swiss Franc - - - - - - - - - - - - Japan 5Y 74.82 -1.23 1.73 7.84 83.13 65.01 11/25 1.00 102.00 0.79 0.00 -0.05 -0.15 0.00
4 5 - 15 Years 186.42 0.44 3402.49 1.33 3.35 1.61
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 67.61 -0.45 -2.98 -1.77 99.56 66.41 05/45 3.25 131.32 1.86 0.03 0.04 0.00 -0.20
5 Over 15 Years 301.67 1.13 4379.67 3.26 6.39 2.37
US Dollar 0.12 0.22 0.12 0.22 0.20 0.30 0.35 0.45 0.65 0.75 1.00 1.10 Germany 04/18 0.25 101.61 -0.43 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 173.57 0.62 3254.25 1.80 3.80 2.12
Japanese Yen -0.02 0.08 -0.05 0.05 -0.40 -0.10 -0.15 0.15 -0.15 0.15 -0.10 0.20 10/20 0.25 102.18 -0.20 0.00 0.00 0.00 0.00
Emerging Markets 5Y 329.13 9.48 15.69 15.29 345.86 299.17 08/25 1.00 104.98 0.47 0.00 -0.05 -0.10 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 450.17 -1.14 -8.61 31.93 509.34 416.39 08/46 2.50 128.69 1.35 0.02 0.03 0.00 -0.27
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Dec 01 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 83.98 -0.53 -1.01 7.26 94.63 75.52 Greece 07/17 3.38 94.12 7.34 0.25 0.35 -0.54 0.77
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 228.00 100.00 1 Up to 5 Years 309.71 0.07 0.08 -2.24 2366.23 0.22 -0.65
02/26 3.00 72.23 7.58 0.14 0.28 -0.09 -0.97 2 Over 5 years 581.59 1.17 2.88 4.14 4292.65 3.04 4.91
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 110.73 -0.21 0.00 0.00 0.00 0.00 3 5-15 years 433.69 0.39 1.34 -1.12 3295.71 1.59 0.01
03/25 5.40 138.70 1.01 0.02 -0.01 -0.15 -0.53 4 Over 15 years 719.53 1.48 3.51 6.62 5212.75 3.64 7.25
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/18 0.30 100.66 0.07 -0.02 -0.06 -0.14 0.00 5 All stocks 537.22 1.01 2.46 3.47 4016.14 2.62 4.36
11/20 0.65 100.89 0.47 -0.01 -0.07 -0.19 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
12/25 2.00 105.47 1.42 -0.01 -0.10 -0.24 0.00 Yield Indices Dec 01 Nov 30 Yr ago Dec 01 Nov 30 Yr ago
Crude Oil† Dec 41.58 -0.12 Corn♦ Dec 367.75 2.50 Nov 30 Nov 30 Prev return stock Market stocks
09/46 3.25 114.72 2.57 -0.01 -0.05 -0.11 0.00 5 Yrs 1.11 1.16 1.24 20 Yrs 2.41 2.47 2.52
Brent Crude Oil‡ 44.29 -0.27 Wheat♦ Dec 464.00 3.75 Can 4.25%' 21 127.20 -0.247 -0.249 -0.26 5.18 68878.62 7
Japan 11/17 0.10 100.23 -0.02 0.00 0.00 0.00 0.00 10 Yrs 1.81 1.87 1.92 45 Yrs 2.34 2.41 2.66
RBOB Gasoline† Dec 1.34 0.03 Soybeans♦ Jan 887.00 5.25 Fr 2.25%' 20 116.07 -1.100 -1.091 0.86 20.31 219510.92 14
12/20 0.05 99.91 0.07 0.00 0.00 0.00 0.00 15 Yrs 2.23 2.29 2.32
Heating Oil† Dec 1.36 -0.02 Soybeans Meal♦ Dec 288.00 3.60 Swe 0.25%' 22 109.48 -1.010 -1.029 0.03 31.97 227146.76 7
09/25 0.40 100.93 0.30 0.00 -0.02 -0.02 0.00
Natural Gas† Dec 2.23 0.00 Cocoa (ICE Liffe)X Dec 2251.00 -10.00 UK 2.5%' 16 - - - - - - -
09/45 1.40 100.44 1.38 0.00 -0.02 0.01 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Dec 3327.00 -3.00 UK 2.5%' 24 340.13 -0.853 -0.879 0.89 6.82 485881.17 25
Netherlands 04/17 0.50 101.25 -0.41 0.00 0.00 0.00 0.00 Real yield Dec 01 Dur yrs Previous Yr ago Dec 01 Dur yrs Previous Yr ago
Uranium Dec 36.75 0.00 Coffee(Robusta)X Jan 1490.00 12.00 UK 2%' 35 232.05 -0.792 -0.809 0.78 9.08 485881.17 25
07/25 0.25 96.49 0.63 -0.01 -0.04 -0.12 0.00 Up to 5 yrs -0.93 2.44 -0.90 -1.11 -1.70 2.46 -1.67 -1.70
Carbon Emissions - - Coffee (Arabica)♥ Dec 116.30 -1.00 US 0.625%' 21 101.54 0.349 0.338 -0.11 35.84 1110818.71 36
Diesel Dec - - White SugarX 414.60 11.60 New Zealand - - - - - - - Over 5 yrs -0.88 23.64 -0.83 -0.66 -0.91 23.74 -0.86 -0.69
US 3.625%' 28 132.82 0.828 0.338 -0.11 16.78 1110818.71 36
Unleaded (95R) - - Sugar 11♥ 14.81 -0.12 12/17 6.00 106.69 2.60 0.01 -0.01 0.03 -1.01 5-15 yrs -0.82 9.68 -0.78 -0.82 -0.93 9.69 -0.90 -0.95
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/17 4.25 105.32 0.57 0.01 -0.01 -0.06 -0.62 Over 15 yrs -0.88 29.30 -0.83 -0.63 -0.90 29.35 -0.85 -0.66
Base Metals (♠ LME 3 Months) Cotton♥ Mar 62.94 1.47 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 1.75 102.64 1.44 0.01 -0.06 -0.17 0.00 All stocks -0.88 20.57 -0.83 -0.66 -0.92 20.72 -0.87 -0.71
Aluminium 1460.00 11.00 Orange Juice♥ Jan 141.20 -1.00 amount.
Aluminium Alloy 1610.00 25.00 Palm Oil♣ Dec 550.25 -8.50 Portugal 06/18 4.45 110.54 0.27 -0.03 -0.13 -0.29 -0.99 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 4611.00 38.50 Live Cattle♣ Dec 129.45 -0.05 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 105.35 2.26 -0.06 -0.27 -0.30 0.00
Lead 1640.00 -4.00 Spain 04/18 0.25 100.43 0.07 -0.02 -0.06 -0.13 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Jan 161.98 -4.03
Nickel 8945.00 90.00 Lean Hogs♣ Dec 58.68 0.13 Spread Spread Spread Spread 10/25 2.15 106.03 1.49 -0.04 -0.14 -0.24 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 15005.00 5.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.35 1.19 0.00 0.01 0.14 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1559.00 3.00 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 115.87 0.75 0.00 -0.08 0.08 -0.28 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Nov 30 Month Year Australia 2.91 2.44 0.75 Italy 1.42 0.94 -0.74 Switzerland 01/18 3.00 109.09 -1.25 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1065.40 3.50 S&P GSCI Spt 336.97 -7.33 -30.14 Austria 0.74 0.26 -1.42 Japan 0.30 -0.17 -1.86 05/26 1.25 116.22 -0.27 0.00 0.00 0.00 0.00
Silver (US cents) 1421.00 13.00 DJ UBS Spot 81.61 -6.68 -27.76 Belgium 0.77 0.30 -1.39 Netherlands 0.63 0.15 -1.53 United Kingdom 07/18 1.25 101.30 0.75 -0.04 -0.05 -0.13 -0.28 Data provided by Morningstar | www.morningstar.co.uk
Platinum 843.00 12.00 R/J CRB TR 184.19 -6.12 -27.79 Canada 1.64 1.17 -0.52 Norway 1.44 0.97 -0.72 01/21 1.50 101.07 1.28 -0.05 -0.07 -0.18 0.00
Palladium 547.00 9.00 Rogers RICIX TR 2130.79 - - Denmark 0.70 0.23 -1.46 Portugal 2.26 1.79 0.10 09/25 2.00 102.08 1.77 -0.06 -0.10 -0.22 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 244.08 -8.04 -32.20 Finland 0.72 0.25 -1.44 Spain 1.49 1.02 -0.67 01/45 3.50 121.24 2.47 -0.06 -0.11 -0.22 -0.20
Iron Ore (Platts) 40.50 -2.00 UBS Bberg CMCI TR 12.64 -6.36 -28.60 France 0.79 0.32 -1.37 Switzerland -0.27 -0.75 -2.43 United States 07/17 0.63 99.64 0.84 -0.03 0.00 0.14 0.00
Iron Ore (The Steel Index) 41.60 -1.20 LEBA EUA Carbon 8.52 0.00 21.02 Germany 0.47 0.00 -1.69 United Kingdom 1.77 1.29 -0.39 10/20 1.38 98.94 1.60 -0.07 -0.07 0.01 0.00
GlobalCOAL RB Index 54.25 0.25 LEBA CER Carbon 0.59 -6.35 1080.00 Greece 7.58 7.10 5.42 United States 2.16 1.69 0.00 11/25 2.25 100.81 2.16 -0.06 -0.08 0.00 0.00
Baltic Dry Index 598.00 14.00 LEBA UK Power 1329.00 85.61 -20.42 Ireland 1.01 0.54 -1.15 11/45 3.00 101.44 2.93 -0.05 -0.08 0.00 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
20 ★ FINANCIAL TIMES Wednesday 2 December 2015

MANAGED FUNDS SERVICE

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

Atlantis China Healthcare Fund $ 2.02 - 0.01 0.00 Invesco Global Structured Equity A $ 47.70 - 0.20 0.73 Sterling Bond £ 1.4670 - -0.0010 3.55

ACPI Global UCITS Funds Plc (IRL) Cheyne Capital Management (UK) LLP Ennismore Smaller Cos Plc (IRL) Generali International Limited M & G (Guernsey) Ltd (GSY)
Atlantis Japan Opportunities Fund $ 2.53 - 0.02 0.00 Invesco Global Total Ret.(EUR) Bond Fund A € 13.24 - 0.02 0.00 UK £ 6.5690 - 0.0490 1.57
www.acpishard.com Other International Funds 5 Kensington Church St, London W8 4LD 020 7368 4220 PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 Regulated
Regulated FCA Recognised International Insurances Lloyds Gilt Fund Limited The M&G Offshore Fund Range
Atlantis Asian Fund $ 6.18 - 0.02 0.00 Cheyne European Event Driven Fund € 137.91 - -3.22 0.00 Invesco Gold & Precious Metals A $ 3.53 - 0.06 0.00
ACPI Emerging Mkts FI UCITS Fund USD A $ 109.23 - -0.37 0.00 Ennismore European Smlr Cos NAV £ 98.08 - -0.36 0.00 Global Multi-Strategy Managed $ 4.80 5.17 0.04 0.00 Lloyds Gilt Fund Quarterly Share £ 1.2700 - -0.0010 1.90 Corporate Bond 1310.38 1350.91 -2.00 3.16
Cheyne European High Yield Fund € 128.43 - -3.51 0.00 Invesco Greater China Equity A $ 44.98 - 0.49 0.00
ACPI Global Credit UCITS Funds USD A $ 13.99 - 0.00 0.00 Ennismore European Smlr Cos NAV € 139.78 - -0.11 0.00 UK Multi-Strategy Managed £ 4.85 5.22 0.01 0.00 Monthly Share £ 1.2200xd - -0.0030 1.90 Global Basics 2282.94 2353.55 -0.64 0.31

AXIOM
Cheyne Multi Strategy Liquid Fund $ 124.23 - 2.46 - Invesco India Equity A $ 51.30 - 0.30 0.00
ACPI Global Fixed Income UCITS Fund USD A $ 152.05 - -0.06 0.00 EU Multi-Strategy Managed € 3.06 3.30 0.00 0.00 Lloyds Money Fund Limited Global Leaders 3403.02 3544.82 -0.89 1.11
Cheyne Real Estate Credit Holdings Fund £ 160.92 - 7.23 0.00 Invesco Japanese Equity Adv Fd A ¥ 3930.00 - 46.00 0.00
ALTERNATIVE INVESTMENTS Ennismore European Smlr Cos Hedge Fd Sterling Class £ 52.6120 - 0.0000 0.14
Q ACPI India Fixed Income UCITS Fund USD A $ 9.90 - 0.00 - Global Bond USD $ 3.45 3.72 0.00 0.00 Global High Yield Bond 967.00 996.90 1.50 4.57
Other International Funds
Cheyne Real Estate Debt Fund Class A1 £ 130.82 - 0.23 0.00 Invesco Japanese Value Eq Fd A ¥ 1327.00 - 18.00 0.00 Lloyds Multi Strategy Fund Limited
ACPI India Fixed Income UCITS Fund USD A3 $ 84.63 - 0.02 0.00 NAV € 485.30 - 14.53 0.00 Global Macro Bond Fund 11075.47 11418.01 -43.43 1.30
Conservative Strategy £ 1.1000 - 0.0000 1.97
Axiom Alternative Investments (FRA) Cheyne Total Return Credit Fund - December 2017 Class $ 182.18 - 10.16 0.00 Invesco Latin American Equity A $ 5.84 - -0.07 0.00
ACPI International Bond UCITS Fund USD A $ 17.76 - 0.01 0.00 1 Conduit Street - 4th floor - London W1S 2XA Genesis Asset Managers LLP
North American Dividend Fund 157.62 164.19 -0.86 2.14
Other International Funds Growth Strategy £ 1.4940 - 0.0000 1.32
www.axiom-ai.com Tel: +44 330 822 0374 Cheyne Total Return Credit Fund December 2019 $ 137.99 - 13.28 - Invesco Nippon Small/Mid Cap Equity A ¥ 1033.00 - 3.00 0.00
Regulated Equinox Fund Mgmt (Guernsey) Limited (GSY)
Emerging Mkts NAV £ 5.15 - -0.04 0.00 Optimal Income Fund 140.80 145.16 0.03 2.64
Regulated Aggressive Strategy £ 1.8390 - -0.0050 0.00
Invesco Pan European Equity A EUR Cap NAV € 20.27 - -0.02 0.00
ACPI Select UCITS Funds PLC (IRL) Axiom Contingent Capital € 1031.17 - 0.77 -
Regulated Equinox Russian Opportunities Fund Limited $ 119.90 - 3.71 0.00 Recovery Fund Limited 'A' Participating Shares 10128.63 10550.66 36.72 0.44
Cohen & Steers SICAV (LUX)
Invesco Pan European High Income Fd A € 14.03 - -0.06 2.38
Global USD Growth Strategy $ 1.4140 - -0.0050 0.00
Axiom Contingent Capital £ 1035.03 - 0.75 - Regulated
ACPI Balanced UCITS Fund USD Retail $ 14.04 - -0.01 0.00 HPB Assurance Ltd Dealing Daily Recovery Fund Limited 'I' Participating Shares 10154.09 10256.66 38.03 1.26
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Invesco Pan European Small Cap Equity A € 23.81 - 0.42 0.00
Axiom Equity $ 940.02 - 3.16 - European Real Estate Securities € 24.5068 - 0.1492 1.54
ACPI Balanced UCITS Fund EUR Retail € 10.59 - -0.01 0.00 Euronova Asset Management UK LLP (CYM) International Insurances
Regulated Strategic Corporate Bond Fund 133.10 138.65 0.03 2.99
Europ.RealEstate Sec. IX € 32.8086 - 0.1997 0.00 Invesco Pan European Structured Equity A € 18.18 - 0.01 0.00
Axiom Equity € 985.96 - 3.32 0.00 Holiday Property Bond Ser 1 £ 0.50 - 0.01 0.00
ACPI Balanced UCITS Fund GBP Retail £ 10.72 - 0.00 0.00 Smaller Cos Cls One Shares (Est) € 35.63 - 0.66 0.00 UK Select 1533.07 1596.94 10.09 1.16
Gbl Listed Infrastructure I $ 9.9728 - -0.0206 - Invesco UK Eqty Income A £ 32.48 - -0.04 0.00
Axiom Obligataire $ 1788.86 - 0.23 0.00 Holiday Property Bond Ser 2 £ 0.60 - 0.01 0.00
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - Smaller Cos Cls Two Shares (Est) € 24.88 - 0.42 0.00
Gbl Listed Infrastructure IX $ 9.9728 - -0.0206 - Invesco UK Investment Grade Bond A £ 0.98 - -0.01 2.90
Axiom Obligataire € 1786.95 - 0.28 0.00
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - Smaller Cos Cls Three Shares (Est) € 12.53 - 0.21 0.00
Gbl RealEstate Sec. I $ 10.7669 - -0.0755 1.42 Hamon Investment Group Invesco US Structured Equity A $ 21.18 - -0.08 0.00
Axiom Obligataire £ 1797.90 - 0.22 0.00 Lombard Odier Funds (Europe) S.A (LUX)
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - Smaller Cos Cls Four Shares (Est) € 16.10 - 0.27 0.00 Other International Funds
www.loim.com
Gbl RealEstate Sec. IX $ 12.7338 - -0.0892 0.00 Invesco US Value Eq Fd A $ 31.87 - -0.03 0.00
Asian Market Leaders - USD $ 24.90 - 0.20 0.00 Regulated
ACPI Horizon UCITS Fund $ 13.00 - 0.03 0.00
Lombard Odier Funds
BLME Asset Management (LUX) Invesco USD Reserve A $ 87.02 - 0.00 0.00
BLME Sharia'a Umbrella Fund SICAV SIF Asian Market Leaders - GBP £ 12.88 - 0.05 0.00
Absolute Ret Bond (EUR) PA € 11.98 - 0.01 0.00 MFS Investment Funds (LUX)
Regulated FCA Recognised
Greater China - USD $ 10.72 - 0.14 0.00
Income Fund - Share Class A Acc $ 1136.17 - -0.07 0.00 Absolute Ret Bond (USD) PA $ 17.61 - 0.02 0.00
Invesco Global Asset Management Ltd (IRL) Blend.Research Gb.Eq.Fd. € 108.23 - -0.34 -
Greater China - GBP £ 4.48 - 0.04 0.00 Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
Income Fund - Share Class B Acc $ 1156.69 - -0.07 0.00 FCA Recognised All Roads (CHF) PA SFr 17.52 - -0.03 0.00
Blend.Research Gb.Eq.Fd. £ 102.02 - -0.63 -
Selected Asian P'folio $ 45.47 45.48 -0.12 0.00
Income Fund - Share Class C Acc $ 1003.99 - -0.06 0.00 Eurobank Fund Management Company (Luxembourg) S.A. Invesco Stlg Bd A QD F £ 2.61 - 0.00 3.30 All Roads (USD) PA $ 11.16 - -0.03 0.00
Regulated Blend.Research U.S.Core Eq.Fd. ¥ 10635.00 - -15.00 -
Crèdit Andorrà Asset Management (LUX)
Algebris Investments (IRL)
Income Fund - Share Class D Dis $ 994.57 - -0.06 1.23 www.creditandorra.com Invesco Asian Equity A $ 6.29 - 0.11 0.53 All Roads (GBP) PA £ 11.40 - -0.03 0.00
(LF) Absolute Return € 1.33 - 0.00 0.00 Blend.Research Gb.Eq.Fd. $ 100.91 - -0.64 -
Regulated FCA Recognised Haussmann
Other International Funds Invesco ASEAN Equity A $ 88.98 - 0.81 0.45 All Roads (EUR) PA € 11.31 - -0.02 0.00
Algebris Financial Credit Fund - Class I EUR € 133.15 - 0.04 0.00 Income Fund - Share Class G Acc £ 1076.94 - -0.07 0.00 Crediinvest SICAV Money Market Eur I € 11.20 - 0.00 0.00 (LF) Eq Emerging Europe € 0.75 - -0.01 0.00 Em.Mk.Eq.Fund Euro € 116.76 - -0.76 0.00
Haussmann Cls A $ 2684.67 - -11.68 0.00 Invesco Bond A $ 26.60 - -0.21 2.22
Algebris Financial Income Fund - Class I EUR € 121.42 - 0.16 0.00 Income Fund - Share Class M Acc € 1010.50 - -0.08 0.00 (LF) Eq Flexi Style Greece € 0.94 - -0.05 0.00 Alpha Japan (EUR) PA F € 11.96 - -0.07 0.00
Crediinvest SICAV Money Market Usd A $ 10.02 - 0.00 0.00 Em.Mk.Eq.Fund Sterling £ 96.33 - -0.91 0.00
Haussmann Cls C € 2349.99 - -9.81 0.00 Invesco Continental Eurp Small Cap Eqty A $ 196.43 - 1.46 0.00
Algebris Financial Equity Fund - Class B EUR € 100.75 - 0.11 - Income Fund - Share Class W DisA$ 1032.84 - 0.00 - (LF) Eq Mena Fund € 13.07 - -0.26 0.00 Alpha Japan (CHF) PA F SFr 14.92 - -0.09 0.00
Crediinvest SICAV Fixed Income Eur € 10.76 - -0.01 0.00 Em.Mk.Eq.Fd.US Dollar $ 94.18 - -0.91 0.00
Haussmann Cls D SFr 1244.25 - -5.57 0.00 Invesco Emerging Markets Equity A $ 35.97 - 0.33 0.00
Algebris Asset Allocation Fund - Class B EUR € 101.81 - -0.01 - Gl Sukuk Fund - Share Class A Acc $ 1225.91 - -0.36 0.00 (LF) Greek Government Bond € 19.11 - -0.26 - Alpha Japan (JPY) PA F ¥ 1421.00 - -9.00 0.00
Crediinvest SICAV Fixed Income Usd $ 10.44 - 0.00 0.00 Gb.Conc.Eq.Fd.Euro € 296.46 - -0.81 0.00
Invesco Emerging Markets Bond A $ 20.77 - -0.49 4.73 Alpha Japan (USD) PA F $ 17.13 - -0.10 0.00
Gl Sukuk Fund - Share class B Acc £ 1094.33 1094.33 -0.36 0.00 Crediinvest SICAV Spanish Value € 258.36 - 2.15 0.00 (LF) Greek Corporate Bond € 12.24 - -0.02 - Gb.Conc.Eq.Fd.Sterl.UK T £ 173.97 - -0.99 0.00
Heartwood Wealth Management Limited (IRL)
Alken Asset Management (LUX)
Regulated Invesco Continental European Equity A € 9.20 - 0.01 0.19 Alternative Beta PA F SFr 116.07 - 0.00 0.00
61 Conduit Street, London, W1S 2GB Crediinvest SICAV International Value € 227.24 - -0.32 0.00 (LF) FOF Dynamic Fixed Inc € 12.04 - -0.02 0.00 Gb.Conc.Eq.Fd.Sterling £ 263.38 - -1.49 0.00
www.alken-am.com Bank of America Cap Mgmt (Ireland) Ltd (IRL) Heartwood Caut Multi Asset B Acc 139.61 - -0.12 0.00 Invesco Gilt A £ 14.96 - -0.09 1.40
(LF) FOF Real Estate € 17.27 - -0.04 0.00 Alternative Beta PA F € 78.40 - -0.01 0.00
Regulated Regulated Crediinvest SICAV Big Cap Value € 16.53 - 0.10 0.00 Gb.Conc.Eq.Fd.US $ 198.25 - -1.16 0.00
Invesco Global Small Cap Equity A NAV $ 121.40 - 0.49 0.00 Alternative Beta PA F $ 117.32 - -0.01 0.00
Alken European Opportunities € 222.26 - 2.90 0.00 Global Liquidity USD $ 1.00 - 0.00 0.26 Crediinvest SICAV US American Value $ 18.28 - -0.14 0.00 Gb.Eq.Hdg Fd.Euro IRE T € 189.28 - -0.51 0.00
FIL Fund Management (LUX) Invesco Global High Income A NAV $ 12.39 - 0.00 5.46 Commodities (CHF) PA SFr 4.97 - -0.02 0.00
Alken European Opportunities £ 124.69 - 1.28 0.00 Crediinvest SICAV Sustainability € 16.09 - 0.04 0.00 Gb.Eq.Euro Hdg Fd. € 268.25 - -0.72 0.00
2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Barclays Investment Funds (CI) Ltd (JER) Phone: 800 22 089, 800 22 088 Invesco Gbl R/Est Secs A GBP F F £ 7.87 - -0.02 0.89 Commodities (EUR) PA € 5.04 - -0.02 0.00
Alken Absolute Return € 146.57 - 1.49 0.00 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Gb.Eq.Fund Euro € 299.11 - -0.23 0.00
Regulated
FCA Recognised Invesco Global Health Care A $ 129.31 - -1.58 0.00
Alken Absolute Return £ 118.96 - 1.22 0.00 Daiwa SB Investments (UK) Ltd (LUX) China Consumer A-GBP £ 14.55 - -0.03 0.00 Commodities (USD) PA $ 5.22 - -0.02 0.00
Bond Funds Gb.Eq. Fd Euro IRE T € 189.24 - -0.14 0.00
5 King William Street, London EC4N 7DA
www.daiwasbi.co.uk 0207 597 7000 Hermes Investment Funds Plc (IRL) Invesco Global Select Equity A $ 13.36 - 0.07 0.00
Alken Small Cap € 193.73 - 2.24 0.00 Sterling Bond F £ 0.45 - -0.01 3.30 China Focus A-GBP £ 4.23 - 0.00 0.71 Convertible Bd P A € 17.69 - -0.01 0.00
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 Gb.Eq.Fd.Sterling UK T £ 212.25 - -0.78 0.00
Regulated
FCA Recognised Invesco Jap Eqty Core A $ 1.83 - 0.02 0.00
Global Financial Services A-GBP £ 0.45 - 0.00 0.11 Convertible Bd Asia PA F SFr 13.61 - -0.01 0.00
DSBI Japan Equity Fundamental Active I JPY ¥ 12861.73 12861.73 198.68 0.00 Gb.Eq.Fd.US Dollar $ 315.77 - -1.23 0.00
Hermes Abs Return Credit Fund Class F Acc £ £ 1.01 1.01 0.00 -
Baring International Fd Mgrs (Ireland) (IRL)
Global Health Care A-GBP £ 0.56 - 0.00 0.00
Invesco Japanese Equity A $ 19.35 - 0.25 0.00 Convertible Bd Asia PA F € 14.52 - -0.02 0.00
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 DSBI Japan Equity Fundamental Active I GBP £ 127.78 127.78 2.01 0.00 Gb.Eq.Fund Sterling £ 209.83 - -0.78 0.00
Hermes Abs Return Credit Fund Class R Acc € € 2.07 2.07 0.01 -
FCA Recognised Invesco Korean Equity A $ 32.65 - 0.22 0.00
Global Industrials A-GBP £ 0.65 - 0.00 0.00 Convertible Bd Asia PA F $ 14.63 - -0.02 0.00
DSBI Japan Equity Fundamental Active A EUR € 122.59 128.72 1.91 0.00 Gb.Val.Ex-Jap.Fd.USD $ 119.16 - -0.11 0.00
ASEAN Frontiers A GBP Inc £ 108.33 - 1.07 0.59 Hermes Active UK Inflation Fund Class F Acc £ 1.29 1.29 -0.01 0.00
Invesco PRC Equity A $ 52.53 - 0.84 0.00 Emerg. Consumer (CHF) PA SFr 11.64 - -0.06 0.00
Global Inflation-Linked Bd A-GBP-Hdg £ 1.17 - 0.01 0.56 Gb.Val.Ex-Japan Fd.Yen ¥ 14446.00 - 47.00 0.00
Asia Growth A GBP Inc H £ 44.33 - 0.45 0.00 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.57 1.57 0.01 0.00
DAVIS Funds SICAV (LUX) Invesco Pacific Equity A $ 47.63 - 0.75 0.19 Emerg. Consumer (EUR) PA € 11.79 - -0.06 0.00
Allianz Global Investors GmbH(1200) F (LUX) Global Real Asset Securities £ 1.40 - 0.01 0.00 Gb.Val.Fd. Euro € 139.24 - 0.22 0.00
FCA Recognised Australia A GBP Inc £ 69.70 - 1.48 1.95 Regulated Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.55 3.55 0.04 0.00
Invesco Global Technology A $ 16.38 - -0.09 0.00 Emerg. Consumer (USD) PA $ 11.78 - -0.05 0.00
Davis Value A $ 41.10 - -0.12 0.00 Global Technology A-GBP £ 0.27 - 0.00 0.00 Gb.Val.Fd.Sterling £ 118.98 - -0.16 0.00
Allianz Best Styles Global Equity £ 107.78 107.78 -0.15 - Hermes Global Emerging Markets Fund Class F Acc £ 1.16 1.16 0.00 0.00
Baring China Bond Fund $ 9.95 - -0.03 0.00
Invesco UK Eqty A £ 8.09 - 0.05 1.37 Emerg.Eq. Risk Par.(EUR) PA € 7.93 - -0.09 0.00
Davis Global A $ 29.15 - 0.02 0.00 Global Telecomms A-GBP £ 0.28 - -0.01 1.17 Gb.Val.Fd.USD $ 106.00 - -0.17 0.00
Allianz Global Fundamental Strategy £ 106.78 106.78 0.01 - Hermes Global Emerging Markets Fund Class R Acc € 3.06 3.06 0.03 0.00
Baring Emerging Markets Corporate Debt Fund $ 9.30 - -0.05 0.00
India Focus A-GBP £ 4.32 - 0.04 0.00 Emerg. Eq. Risk Par.(USD) PA $ 5.85 - -0.09 0.00
Allianz Global Small Cap Equity £ 112.47 112.47 -0.16 - Low Volatility Gb.Eq.Fd.Euro € 108.23 - 0.09 -
Hermes Global Equity Fund Class F Acc £ 1.54 1.54 0.00 0.00
Asset Management
Baring European Opportunities Fund Class A EUR Acc € 14.33 - 0.12 0.00

Asset Management
Emerg. Loc.Cur.&Bds DH (CHF) PASFr 7.87 - 0.00 0.00
Asset Management
Latin America A-GBP £ 1.33 - -0.02 0.65 Low Volatility Gb.Eq.Fd.Sterl £ 102.02 - -0.22 -
Baring Global Mining Fund - Class A GBP Inc £ 3.54 - 0.03 0.65 Hermes Global Equity Fund Class R Acc € 4.20 4.20 0.00 0.00
Amundi Funds (LUX) Emerg.Loc.Cur.Bd.Fdt PA SFr 8.62 - -0.05 0.00
Low Volatility Gb.Eq.Fd.USD $ 100.90 - -0.24 -
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Dynamic Emerging Markets A GBP Acc F £ 8.70 - 0.00 0.00 Hermes Global ESG Equity Fund Class F Acc £ 1.18 1.18 0.00 0.00
Findlay Park Funds Plc (IRL)
Emerg.Loc.Cur.Bd.Fdt PA € 11.44 - -0.01 0.00
www.amundi-funds.com Low Volatility Gb.Eq.Fd.Yen ¥ 9702.00 - 18.00 -
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
FCA Recognised Eastern Europe A GBP Inc £ 42.14 - -0.38 1.72 Hermes Global High Yield Bond Fund Class F Acc £ 1.03 1.03 0.00 0.00
FCA Recognised Invest AD Emerg.Loc.Cur.Bd.Fdt PA $ 8.39 - -0.03 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.64 - 0.00 0.00 Dodge & Cox Worldwide Funds (IRL) Client services: +971 2 692 6101 clientservices@InvestAD.com
Emerging Mkt Debt LC A GBP Hedged Inc £ 7.18 - -0.02 6.56 American Fund USD Class $ 82.24 - -0.38 0.00 Hermes Global High Yield Bond Fund Class R Acc € 2.79 2.79 0.00 0.00
6 Duke Street,St.James,London SW1Y 6BN
Other International Funds Euro BBB-BB Fdt PA SFr 15.56 - 0.00 0.00 MFS Meridian Funds SICAV (LUX)
Bd. Global AU Class - R - USD $ 25.51 - -0.03 0.00 www.dodgeandcox.worldwide.com 020 3713 7664
Emerging Opportunities A GBP Inc H £ 18.27 - -0.09 0.00 American Fund GBP Hedged £ 44.83 - -0.21 0.00 Hermes Global Small Cap Fund Class F Acc £ £ 1.01 1.01 -0.01 - Regulated
FCA Recognised Invest AD - Iraq Opportunity Fund $ 59.43 - 3.35 0.00
Euro BBB-BB Fdt PA € 12.37 - 0.00 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Dodge & Cox Worldwide Funds plc - Global Bond Fund Absolute Return A1 € 20.69 - 0.00 0.00
Glb Emerging Markets A GBP Inc H £ 19.01 - 0.05 0.00 American Fund GBP Unhedged £ 54.39 - -0.62 - Hermes Global Small Cap Fund Class R Acc € € 2.07 2.07 -0.01 -
Invest AD - Emerging Africa Fund $ 897.15 - -1.67 0.00
EUR Accumulating Class € 12.21 - 0.03 0.00 Euro BBB-BB Fdt PA £ 10.93 - 0.00 0.00
Eq. Emerging World AU Class - R - USD $ 81.81 - -0.95 0.00 Asia ex-Japan A1 $ 22.73 - -0.12 0.00
Glb Resources A GBP Inc H £ 10.90 - 0.01 0.37 Latin American Fund USD Class $ 11.52 - -0.13 0.00 Hermes Multi Asset Inflation Fund Class F GBP Acc £ 1.00 1.00 0.00 0.00
Invest AD - GCC Focus Fund $ 1423.84 - -5.09 0.00
EUR Accumulating Class (H) € 9.24 - 0.00 0.00 Euro BBB-BB Fdt PA $ 17.56 - -0.01 0.00
Eq. Greater China AU Class - R - USD $ 553.35 - -4.16 0.00 Bond A1 $ 10.39 - 0.01 0.00
High Yield Bond A GBP Hedged Inc H £ 6.21 - 0.01 7.10 Latin American Fund GBP Unhedged £ 7.62 - -0.14 - Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.03 1.03 0.00 0.00
EUR Distributing Class € 11.71 - 0.03 3.09 Euro Credit Bd PA F € 12.96 - 0.00 0.00
Eq. Latin America AU Class - R - USD $ 319.35 - -11.36 0.00 China Equity Fd A1 $ 9.15 - -0.02 0.00
Hong Kong China A GBP Inc £ 592.09 - 8.67 0.59 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.32 1.32 -0.01 0.00
EUR Distributing Class (H) € 8.85 - 0.00 3.37 Euro Government Fdt PA € 12.65 - -0.02 0.00
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.79 - 0.00 0.00 Continental European Eqty A1 € 18.13 - 0.08 0.00
India Fund - Class A GBP Inc £ 14.06 - -0.03 0.00 Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.29 1.29 0.00 1.29
GBP Distributing Class £ 10.00 - -0.01 3.26 Euro Inflation-Lk Fdt PA € 12.20 - 0.03 0.00
Emer Mkts Debt Lo Curr Fd A1 $ 10.93 - -0.04 0.00
Latin America A USD Inc H $ 26.38 - 0.00 0.23 Hermes Sourcecap EU Alpha Fund Class R Acc € 3.34 3.34 0.00 0.00
The Antares European Fund Limited GBP Distributing Class (H) £ 8.93 - 0.00 3.34 Euro Resp.Corp. Fdt PA € 18.26 - -0.02 0.00
Emerging Markets Debt A1 $ 33.07 - -0.06 0.00
Other International MENA A GBP Inc F * £ 12.00 - 0.04 0.66 Hermes Sourcecap EX UK Fund Class F Acc £ 1.38 1.38 0.00 0.00

Asset Management
GAM
USD Accumulating Class $ 9.30 - -0.01 0.00 Europe High Conviction PA € 12.30 - 0.11 0.00

Asset Management
funds@gam.com, www.jbfundnet.com Emerging Markets Eq.A1 $ 10.42 - -0.09 0.00
AEF Ltd Usd $ 658.98 - 4.41 - Fleming Financial Trust Investment Fund Limited (NZ) Hermes Sourcecap EX UK Fund Class R Acc € 3.37 3.37 0.00 0.00
Dodge & Cox Worldwide Funds plc-Global Stock Fund Regulated
Incorporated in New Zealand, Reg No 5141841 Eurozone Small&Mid Caps PA € 55.83 - 0.55 0.00
Baring International Fd Mgrs (Ireland) (IRL) European Concentrated A1 € 18.19 - 0.08 0.00
AEF Ltd Eur € 661.25 - 4.28 0.00 Registered address: Level 5, 3 City Road, Graftn, Auckland, 1010, New Zealand Hermes UK Small & Mid Cap Fund Class F Acc £ 1.68 1.68 0.00 0.00 JB BF ABS-EUR B € 104.87 - 0.03 0.00
USD Accumulating Share Class $ 16.09 - -0.02 0.00
Regulated
www.fftinvestmentfund.com Fdmt.Eq.L/S SH Sd EUR PA € 10.70 - -0.01 0.00
European Core Eq A1 € 32.99 - 0.22 0.00
China A-Share A GBP Inc £ 5.70 - 0.14 0.00 info@fftinvestmentfund.com Hermes UK Small & Mid Cap Fund Class R Acc € 5.26 5.26 0.03 0.00 JB BF Abs Ret Def-EUR B € 109.82 - 0.03 0.00
GBP Accumulating Share Class £ 17.57 - -0.04 0.00
Other International Funds Fdmt.Eq.L/S SH Sd USD PA $ 10.73 - -0.01 0.00
Arisaig Partners European Res.A1 € 33.91 - 0.17 0.00
Fleming FT Investment Fund Hermes US All Cap Equity Class F Stg £ Acc £ 1.01 1.01 -0.01 - JB BF Abs Ret EM-USD B $ 114.13 - -0.02 0.00
Other International Funds GBP Distributing Share class £ 12.82 - -0.03 0.83
Gbl.Gvt.Fdmt PA € 10.77 - 0.02 0.00
Barings (Luxembourg) (LUX) Fleming Fund £ 4.69 4.69 -0.01 - European Smaller Companies A1 € 53.77 - 0.76 0.00
Arisaig Africa Consumer Fund Limited $ 13.78 - -0.11 0.00 Hermes US All Cap Equity Class R € Acc € 2.07 2.07 -0.01 - JB BF Abs Ret-EUR B € 128.63 - 0.03 0.00
FCA Recognised EUR Accumulating Share Class € 22.86 - 0.03 0.00
Gbl.Gvt.Fdmt.(CHF) PA SFr 23.44 - -0.07 0.00
European Value A1 € 37.91 - 0.22 0.00
Arisaig Asia Consumer Fund Limited $ 63.85 - -0.21 0.00 Russia A GBP Inc F £ 26.70 - -0.07 0.00 Dodge & Cox Worldwide Funds plc-International Stock Fund Hermes US SMID Equity Fund Class F Acc £ 1.67 1.67 -0.01 0.00 JB BF Abs Ret Pl-EUR B € 127.47 - 0.03 0.00

USD Accumulating Share Class $ 13.91 - 0.00 0.00 Foord Asset Mgt (Guernsey) Ltd (GSY) Gbl.Gvt.Fdt.SH (CHF) PA SFr 26.61 - -0.01 0.00
Global Conc.A1 $ 36.99 - -0.22 0.00
Arisaig Global Emerging Markets Consumer UCITS € 12.43 - -0.08 0.00 Regulated Hermes US SMID Equity Fund Class R Acc € 3.71 3.71 -0.02 0.00 JB BF EM Corporate-USD B $ 107.55 - -0.09 0.00
Gbl.5B Fdmt (EUR) PA € 12.10 - 0.02 0.00
BlackRock (JER) EUR Accumulating Share Class € 15.50 - 0.05 0.00 Foord International Trust $ 34.87 - -0.05 0.00 Global Credit Fund $ 10.26 - 0.00 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 11.14 - -0.11 0.00 JB BF EM Infl Link-USD B $ 80.77 - -1.04 0.00
Regulated
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Gbl.5B Fdmt (CHF) PA SFr 10.74 - -0.04 0.00
Impax Asset Management (IRL)
JB BF EM Inv Grade-USD B $ 98.68 - -0.10 0.00
Global Energy Fund A1 $ 12.70 - 0.02 0.00
Arisaig Latin America Consumer Fund $ 20.43 - -0.70 0.00 BlackRock UK Property £ 41.21 - 0.17 3.10
USD Accumulating Share Class $ 18.26 - -0.04 0.00 Norfolk House, 31 St James's Square, London, SW1Y 4JR
Franklin Templeton International Services Sarl (IRL) FCA Recognised
Gbl.5B Fdmt SH (USD) PA $ 10.96 - 0.00 0.00
Global Equity A1 $ 45.73 - -0.17 0.00
Blackrock UK Long Lease £ 1071.52 - 0.97 0.00 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland JB Emerging (EUR)-EUR B € 333.80 - -1.00 0.00
GBP Accumulating Share Class £ 18.86 - -0.06 0.00 Env Mkts (Ire) Stl A £ 2.25 - 0.00 0.00
Other International Funds Generation Global (CHF) PA F SFr 14.51 - -0.03 0.00
Artisan Partners Global Funds PLC (IRL)
JB Emerging (USD)-USD B $ 407.50 - -1.65 0.00
Global Equity A1 € 27.40 - -0.13 0.00
BLK Intl Gold & General $ 3.85 4.06 0.08 0.00 Franklin Emerging Market Debt Opportunities Fund Plc
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland GBP Distributing Share Class £ 12.01 - -0.04 0.57 Env Mkts (Ire) Euro A € 2.20 - 0.01 0.00 Generation Global (EUR) PA F € 22.00 - 0.05 0.00
Tel: 44 (0) 207 766 7130 Franklin Emg Mkts Debt Opp CHFSFr 17.44 - 0.51 8.01 Global High Yield Fund $ 24.34 - 0.01 0.00
JB BF Local EM-USD B $ 248.33 - -1.86 0.00
FCA Recognised EUR Accumulating Share Class € 22.41 - 0.02 0.00 Env Mkts (Ire) USD A $ 1.78 - 0.01 0.00 Generation Global (USD) PA F $ 15.85 - -0.01 0.00
Artisan Partners Global Funds plc BONHOTE Franklin Emg Mkts Debt Opp EUR € 12.27 - 0.36 7.13 JB BF Total Ret-EUR B € 97.65 - -0.03 0.00
Global High Yield Fund € 16.75 - -0.01 0.00
Other International Funds
Artisan Emerging Markets I USD Acc $ 6.91 - -0.04 0.00 Global Energy (USD) PA F $ 6.81 - 0.07 0.00
Franklin Emg Mkts Debt Opp GBP £ 10.18 - 0.25 6.96 Global Multi-Asset A1 $ 15.25 - -0.02 0.00
Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6695.00 - -30.00 2.26 JB EF Abs Ret Eur-EUR B € 120.33 - 0.14 0.00
INDIA VALUE INVESTMENTS LIMITED (INVIL)
Artisan Global Equity Fund Class I USD Acc $ 14.66 - -0.07 0.00 www.invil.mu Golden Age (CHF) PA F SFr 21.60 - -0.10 0.00
Franklin Emg Mkts Debt Opp SGD S$ 22.43 - 0.51 6.17 Global Res.A1 $ 25.92 - -0.12 0.00
Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9791.00 - 139.00 0.93 JB EF Euro Value-EUR B € 188.37 - 1.71 0.00
Other International Funds
Artisan Global Opportunities I USD Acc $ 12.45 - -0.03 0.00 Golden Age (EUR) PA € 14.69 - -0.07 0.00
Franklin Emg Mkts Debt Opp USD $ 17.18 - 0.35 6.99 Global Total Return A1 € 18.40 - -0.07 0.00
NAV £ 7.62 - 0.01 0.00 JB EF Japan-JPY B ¥ 18121.00 - 260.00 0.00
Artisan Global Value Fund Class I USD Acc $ 15.96 - -0.06 0.00 Golden Age (USD) PA F $ 20.39 - -0.10 0.00
Braemar Group PCC Limited (GSY) Inflation-Adjusted Bond A1 $ 13.88 - -0.01 0.00
JB EF Luxury B-EUR B € 227.75 - 0.41 0.00
Artisan US Value Equity Fund Class I USD Acc $ 11.03 - 0.00 0.00
Regulated Dragon Capital Group Sh.T- Money Mkt EUR PA € 112.29 - 0.00 0.00
c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Frontier Capital (Bermuda) Limited Intrinsic Value Investors (IVI) LLP (IRL) Japan Equity A1 $ 10.36 - -0.10 0.00
UK Agricultural Class A £ 1.26 - 0.00 0.00 JB Ms EF Special Val. EUR/A € 141.83 - -0.14 1.10
Fund information, dealing and administration: funds@dragoncapital.com Other International 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
Sh.T- Money Mkt CHF PA SFr 128.58 - -0.01 0.00
Other International Funds FCA Recognised Latin American Equity Fd A1 $ 11.55 - -0.28 0.00
UK Agricultural Class B £ 1.41 - 0.02 0.00 Commercial Property-GBP Class £ 71.42 - -0.53 - JB Strategy Balanced-CHF/B SFr 152.39 - -0.16 0.00
Ashmore Sicav (LUX)
IVI European Fund EUR € 18.63 - 0.10 0.00
Vietnam Enterprise Inv. (VEIL) NAV $ 3.69 - -0.04 0.00 Sh.T- Money Mkt GBP PA £ 10.28 - 0.01 0.00
2 rue Albert Borschette L-1246 Luxembourg Limited Maturity A1 $ 14.01 - 0.00 0.00
Student Accom Class B £ 0.55 - -0.17 0.00 Global Real Estate-GBP C Class £ 45.26 - -0.50 - JB Strategy Balanced-EUR € 157.86 - 0.01 0.00
FCA Recognised
Vietnam Growth Fund (VGF) NAV $ 23.36 - -0.43 0.00 IVI European Fund GBP £ 17.73 - 0.04 1.02 Sh.T- Money Mkt USD PA $ 10.31 - 0.00 0.00
Prudent Wealth Fd A1 $ 14.76 - 0.01 0.00
Ashmore SICAV Emerging Market Debt Fund $ 94.39 - -0.34 8.42 JB Strategy Balanced-USD/B $ 130.48 - -0.14 0.00
Vietnam Property Fund (VPF) NAV $ 0.81 - 0.01 0.00 GAM Limited (IRL) Sw.Fr.Bd(For) PA SFr 23.82 - 0.02 0.00
CG Asset Management Limited (IRL) Research Bond A1 $ 16.54 - 0.01 0.00
Ashmore SICAV Emerging Market Frontier Equity Fund $ 141.06 - -1.62 0.97 JB Strategy Growth-CHF/B SFr 94.29 - -0.15 0.00
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland FCA Recognised
GAM Fund Management Ltd Sw.Fr.Credit Bd(For) PA SFr 13.65 - 0.01 0.00
00 353 1 434 5098 UK Equity A1 £ 8.14 - 0.01 0.00
Ashmore SICAV Emerging Market Total Return Fund $ 80.26 - -0.54 6.05 JB Strategy Growth-EUR € 118.81 - 0.02 0.00
FCA Recognised DSM Capital Partners Funds (LUX) Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927
Tactical Alpha (CHF) PA SFr 10.12 - 0.02 0.00
www.dsmsicav.com GAM Star Fund Plc US Conc.Growth A1 $ 15.63 - -0.07 0.00
Ashmore SICAV Global Small Cap Equity Fund $ 123.93 - 0.07 0.00 Capital Gearing Portfolio Fund Plc £ 26902.26 26902.26 -1.67 0.62 JB Strategy Inc-CHF/B SFr 120.78 - -0.07 0.00
Regulated
GAM Star Asia-Pacific Eqty USD Acc F $ 12.16 - 0.17 0.00 Tactical Alpha (EUR) PA € 10.41 - 0.01 0.00
CG Portfolio Fund Plc US Government Bond A1 $ 17.05 - 0.01 0.00
Ashmore SICAV Local Currency Fund $ 81.01 - -0.50 0.32 Global Growth I2 Acc € 143.43 - 0.40 0.00 JB Strategy Inc-EUR/B € 161.82 - 0.02 0.00
Real Return Cls A £ 166.63 166.63 -0.05 0.00 GAM Star Asian Eqty USD Ord Acc F $ 13.59 - 0.17 0.00 Invesco (LUX) Tactical Alpha (USD) PA $ 14.98 - 0.01 0.00
Value A1 $ 22.22 - -0.06 0.00
EM Mkts Corp.Debt USD F $ 90.70 - -0.29 8.49 Global Growth I1 Eur € 107.27 - 0.30 - Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 JB Strategy Inc-USD/B $ 146.80 - -0.11 0.00
Dollar Fund Cls D £ 129.88 129.88 -0.09 1.65 FCA Recognised Technology PA € 13.46 - -0.01 0.00
GAM Star Balanced GBP Acc £ 10.52 - 0.01 0.00
EM Mkts Loc.Ccy Bd USD F $ 75.53 - -0.76 4.34 Invesco Management SA
Capital Value Fund Cls V £ 130.48 130.48 -0.01 0.27 GAM Star Cap.Appr.US Eqty USD Inc F $ 17.19 - -0.11 0.00 Technology PA $ 20.40 - -0.01 0.00 MMIP Investment Management Limited (GSY)
Edinburgh Partners Limited (IRL) Invesco Active Multi-Sector Credit Fund A € 2.91 - 0.00 0.00 Regulated
27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Multi-Manager Investment Programmes PCC Limited
GAM Star Cat Bond USD Acc $ 12.71 - 0.00 0.00 Wld Gold Expertise PAF SFr 8.53 - 0.06 0.00
Dealing - Fax only - +353 1 434 5230 Invesco Asia Balanced A dist $ 14.03 - -0.03 3.72
Cedar Rock Capital Limited (IRL) FCA Recognised
Wld Gold Expertise PA € 6.80 - 0.05 0.00
European Equity Fd Cl A Initial Ser € 2579.25 2589.39 212.70 0.00
Regulated Edinburgh Partners Opportunities Fund PLC GAM Star Cautious GBP Acc £ 10.54 - 0.01 0.00 Invesco Asia Consumer Demand Fund A income $ 12.62 - 0.11 0.24
Japanese Equity Fd Cl A Initial Ser ¥ 361904.00 363123.00 28252.00 0.00
Cedar Rock Capital Fd Plc $ 358.82 - -14.23 0.00 European Opportunities I EUR € 2.63 - 0.01 2.20 GAM Star China Equity USD Acc F $ 23.29 - -0.02 0.00 Wld Gold Expertise PA $ 9.08 - 0.07 0.00
Invesco Asia Infrastructure (A) $ 12.50 - 0.15 0.78
Kames Capital VCIC (IRL)
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 LO Selection MMIP - US EQUITY CLASS A 01 June 07 Series $ 1135.99 1139.27 -48.31 0.00
Cedar Rock Capital Fd Plc £ 370.83 - -8.40 0.00 European Opportunities I GBP £ 1.84 - 0.00 2.47 GAM Star Cont European Eqty GBP Acc F £ 3.61 - 0.02 0.00 Invesco Asia Opportunities Equity A $ 102.66 - 0.98 0.00 FCA Recognised
Aspect Capital Ltd (UK) Balanced (CHF) PA F SFr 110.15 - -0.13 0.00 Pacific Basin Fd Cl A Initial Ser $ 2142.33 2154.57 139.28 0.00
Other International Funds Cedar Rock Capital Fd Plc € 348.08 - -3.48 0.00 European Opportunities I USD $ 2.79 - 0.00 2.05 GAM Star Cred Opportunities GBP Acc £ 12.36 - 0.01 4.58 Absolute Return Bond B GBP Acc 1080.89 - 0.14 -
Invesco Balanced Risk Allocation Fund A € 14.76 - 0.02 0.00
Balanced (EUR) PA F € 128.83 - 0.11 0.00 UK Equity Fd Cl A Series 01 £ 2356.72 2380.35 78.79 0.00
Aspect Diversified USD $ 433.93 - 0.41 0.00
European Opportunities A EUR € 2.57 - 0.01 1.53 GAM Star Discretionary FX USD Acc F $ 13.03 - -0.04 0.00 Invesco Emerging Europe Equity Fund A $ 8.07 - -0.06 0.00 Eq Market Neutral B Acc 1012.99 - -0.39 -
Conservative (CHF) PA F SFr 105.09 - -0.04 0.00
Aspect Diversified EUR € 260.83 - 0.24 - Charles Schwab Worldwide Funds Plc (IRL) Diversified Absolute Rtn Fd USD Cl AF2 $ 1591.09 - 14.69 0.00
Regulated Global Opportunities I USD $ 1.65 - -0.01 2.09 GAM Star Dynamic Gbl Bd USD Acc H $ 9.73 - -0.04 0.00 Invesco Emerging Local Currencies Debt A Inc $ 6.84 - -0.03 6.93 Eq Market Neutral Plus B Acc 1014.44 - -1.07 -
Conservative (EUR) PA F € 115.81 - 0.04 0.00 Diversified Absolute Return Stlg Cell AF2 £ 1611.67 - 15.03 0.00
Aspect Diversified GBP £ 133.40 - 0.15 0.00
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 Global Opportunities I GBP £ 1.10 - 0.00 1.94 GAM Star Emerg. Market Rates USD Acc F $ 11.48 - 0.00 0.00 High Yield Global Bond A GBP Inc 521.11 - 0.80 3.64
Invesco Emerging Mkt Quant.Eq. A $ 9.16 - 0.07 0.00
Global Allocation (GBP) PA F £ 10.11 - 0.01 0.00
Aspect Diversified CHF SFr 124.85 - 0.12 0.00
Global Opportunities I EUR € 1.52 - -0.01 1.98 GAM Star European Eqty USD Acc F $ 23.50 - 0.08 0.00 Invesco Energy A $ 18.81 - 0.15 0.00 High Yield Global Bond B GBP Inc 1082.43 - 1.68 4.14
Growth (CHF) PA F SFr 116.23 - -0.21 0.00 LNG Capital (CYM)
Aspect Diversified Trends USD $ 128.59 - 0.75 0.00 Chartered Asset Management Pte Ltd Kingsbury House, 15-17 King St, London SW1Y 6QU
Global Opportunities A GBP £ 1.03 - -0.01 1.47 GAM Star Flexible Gbl Port GBP Ac £ 12.71 - -0.01 0.00 Invesco Euro Corporate Bond Fund (A) € 17.09 - 0.00 0.00 Investment Grade Global Bd A GBP Inc 556.04 - 0.20 2.36
Other International Funds www.lngcapital.com, Tel: 0207 839 3456
Growth (EUR) PA F € 140.83 - 0.17 0.00
Aspect Diversified Trends EUR € 128.72 - 0.75 0.00
CAM-GTF Limited $ 282634.55 282634.55 2649.92 0.00 Pan European Opportunities I EUR € 1.59 - 0.00 - GAM Star GAMCO US Equity Acc F $ 13.45 - -0.03 0.00 Kames Global Equity Income B GBP Acc 1186.49 - -4.75 - Regulated
Invesco Euro Inflation Linked Bond A € 15.89 - 0.03 0.00
Vantage 1500 (EUR) MA € 10.23 - 0.00 0.00
Aspect Diversified Trends GBP £ 133.48 - 0.69 0.00 LNG Europa Credit Fund EUR (Est) € 1196.70 - 65.31 -
CAM GTi Limited $ 649.70 - 30.41 0.00 GAM Star Global Rates USD Acc F $ 12.38 - -0.06 0.00 Kames Global Equity Income B GBP Inc 1130.99 - -4.52 -
Invesco Euro Reserve A € 322.72 - 0.00 0.00
Vantage 3000 (EUR) MA € 10.38 - 0.00 0.00
LNG Europa Credit Fund GBP (Est) £ 1196.70 - 56.94 -
Raffles-Asia Investment Company $ 1.66 1.66 0.00 5.18 GAM Star Global Selector USD Acc F $ 13.09 - 0.10 0.00 Strategic Global Bond A GBP Inc 1095.08 - -0.30 0.71
Invesco Euro Bond A € 7.20 - 0.00 0.00 PrivilEdge
Atlantas Sicav (LUX)
LNG Europa Credit Fund USD $ 1183.45 - -15.60 -
Regulated GAM Star Japan Eqty USD Acc F $ 13.68 - 0.19 0.00 Strategic Global Bond B GBP Inc 621.16 - -0.16 1.21
Invesco European Growth Equity A € 25.74 - 0.07 0.00 Inc.Pt.RMB Dt.CNH PA CNH 102.88 - 0.00 0.00
American Dynamic $ 3547.14 - 37.59 0.00
GAM Star Keynes Quant Strat USD Acc F $ 12.22 - -0.02 0.00 Invesco Global Absolute Return Fund A Class € 11.75 - 0.03 0.00 Inc.Pt.RMB Dt.SH CHF PA SFr 9.82 - 0.03 0.00
American One $ 3259.46 - 7.32 0.00
Marlborough International Management Limited (GSY)
Lloyds Investment Fund Managers Limited (1000)F (JER) Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
EFG Hermes GAM Star Local EM Rates and FX USD Acc $ 10.63 - 0.00 0.00 Invesco Global Bond A Inc $ 5.52 - 0.01 0.75 Inc.Pt.RMB Dt.SH EUR PA € 9.91 - 0.04 0.00
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 FCA Recognised
DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE
Bond Global € 1435.40 - 6.71 0.00 Other International Funds
Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com GAM Star North of South EM Equity Acc F $ 10.15 - -0.08 0.00 Inc.Pt.RMB Dt.USD PA $ 9.98 - 0.04 0.00
Invesco Global Conservative Fund 90 (EUR) A € 11.98 - 0.01 0.00 Marlborough North American Fund Ltd £ 31.58 31.89 0.41 0.00
Eurocroissance € 935.13 - 18.56 0.00 Other International Funds Lloydstrust Gilt £ 12.2000 - -0.0100 2.41
Cheyne Capital Management (UK) LLP (IRL) GAM Star Technology USD Acc F $ 15.89 - 0.00 0.00 Invesco Global Equity Income Fund A $ 59.89 - 0.04 0.00 Jenn. US Eq.Opp. USD PA $ 9.73 - -0.05 0.00 Marlborough Tiger Fund Ltd F £ 26.01 27.71 0.40 0.00
Regulated The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 Lloyds Investment Funds Limited
Far East $ 695.43 - -2.61 0.00
GAM Star US All Cap Eqty USD Acc F $ 13.70 - -0.03 0.00 Invesco Global Inc Real Estate Sec A dist $ 9.15 - -0.03 2.23 Euro High Income € 1.6260 - -0.0010 2.87 Neubrg.Berman US Core PA $ 14.01 - -0.01 0.00
Cheyne Convertibles Absolute Return Fund € 1367.79 - -0.32 0.00 Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00

GAM Star Worldwide Eqty USD Acc F $ 3155.98 - -11.12 0.00 European £ 7.5190 - -0.0370 1.12 Sands US Growth PA € 14.62 - -0.06 0.00
Marwyn Asset Management Limited (CYM)
Cheyne Global Credit Fund € 118.58 - 0.11 0.00 Saudi Arabia Equity Fund SR 13.12 - 0.01 0.00 Invesco Global Inv Grd Corp Bond A Dist $ 11.83 - 0.00 3.03
Atlantis Investment Management Ltd (IRL) Regulated
2nd Floor, 13 St Swithin's Lane, London EC4N 8AL
Cheyne European Mid Cap Fund € 1145.15 - 0.69 0.00 Invesco Global Leisure A $ 37.38 - -0.30 0.00 High Income £ 0.8615xd - -0.0042 4.99 Sands US Growth PA $ 17.67 - -0.07 0.00 Marwyn Value Investors £ 463.87 - -14.48 0.00
www.atlantis-investmenet.com, Tel: 0207 877 3377
Regulated GYS Investment Management Ltd (GSY)
Invesco Global Smaller Comp Eq Fd A $ 57.95 - 0.22 0.00 International £ 4.0270 - -0.0040 1.14 Will.Blair Gbl. Ldrs PA € 16.92 - 0.02 0.00
Regulated
Atlantis China Fund $ 6.44 - 0.00 0.00
Taurus Emerging Fund Ltd $ 174.58 178.14 -15.07 0.00 North American £ 15.8000 - -0.1400 0.07 Will.Blair Gbl. Ldrs PA $ 13.33 - -0.03 0.00
Wednesday 2 December 2015 ★ FINANCIAL TIMES 21

MANAGED FUNDS SERVICE

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

Dyn Europ Eq GBP Ord Inc £ 195.82 - 1.26 1.65 Credit Absolute Return Fund Inst Acc $ 11.07 - 0.00 0.00 Renminbi Bond Fund CNH Cls A CNH 128.08 - 0.03 3.33 Value Partners Classic Equity Fund GBP Unhedged £ 12.47 - 0.01 0.00

Meridian Fund Managers Ltd Oryx International Growth Fund Ltd

Dyn Europ Eq USD Ord Inc $ 183.83 - 1.16 1.22 Diversified Income - Inst Acc $ 19.36 - 0.00 0.00 Renminbi Bond Fund CNH Cls B CNH 127.74 - 0.03 3.10 Value Partners Classic Equity USD Hedged $ 13.84 - 0.26 0.00
Other International Funds Other International Funds

Global Gold & Resources Fund $ 179.68 - 10.63 - China Equity EUR Ord Acc € 136.11 - -0.50 0.00 NAV (Fully Diluted) £ 6.57 - -0.06 0.00 Diversified Income Durat Hdg Fund Inst Acc $ 11.29 - -0.01 0.00 Renminbi Bond Fund Euro Cls B € 120.28 - -0.33 3.65 Value Partners Greater China Equity Fund $ 8.61 - -0.04 -

Global Energy & Resources Fund $ 33.88 - 1.76 - China Equity GBP Ord Acc £ 142.46 - -0.48 0.00 Emerging Asia Bond Fund Inst Acc $ 9.64 - -0.03 0.00 Renminbi Bond Fund GBP Cls B £ 122.37 - -0.35 3.44 Value Partners Health Care Fund RMB Class Z UnhedgedCNH 9.64 - -0.03 -

China Equity USD Ord Acc $ 138.69 - -0.46 0.00 OTP Asset Management Romania SAI SA ((ROM)) Emerging Local Bond - Inst Acc $ 10.77 - -0.09 0.00 Robeco Asset Management (LUX) Renminbi Bond Fund SGD Cls B S$ 121.53 - -0.37 3.40 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 9.22 - 0.02 -
Guide to Data
www.otpfonduri.ro
Coolsingel 120, 3011 AG Rotterdam, The Netherlands.
Mirabaud Asset Management (LUX)
China Equity USD Inst Acc $ 142.56 - -0.46 0.00
Other International Funds
Emerging Markets Bond - Inst Acc $ 38.31 - -0.17 0.00 www.robeco.com/contact Renminbi Bond Fund USD Cls B $ 121.69 - -0.38 3.20 Value Partners Health Care Fund USD Class A Unhedged $ 9.25 - 0.01 -
www.mirabaud.com, marketing@mirabaud.com FCA Recognised
OTP Comodisro RON 16.85 - 0.00 - The fund prices quoted on these pages are supplied by
Regulated
Global Val.Cr.Fd GBP Ord Inc £ 111.47 - -0.09 3.61 Emerging Markets Corp.Bd Fund Inst Acc F $ 12.80 - -0.05 0.00 Renminbi Bond Fund YEN Cls B ¥ 13406.73 - -36.70 0.00 the operator of the relevant fund. Details of funds
Asia-Pacific Equities (EUR) € 136.20 - -1.81 0.00 published on these pages, including prices, are for the
Mir. Conv. Bds Eur A EUR € 140.06 - 0.21 0.00 OTP Obligatiuni RON 14.25 - 0.00 -
Veritas Asset Management LLP (IRL) purpose of information only and should only be used as
Global Val.Cr.Fd USD Inst Acc $ 123.12 - -0.10 0.00 Emerging Markets Short-Term Local Currency Fund $ 11.76 - -0.03 0.00 Renminbi Bond Fund USD Cls A $ 167.87 - -0.52 3.44 a guide. The Financial Times Limited makes no
Chinese Equities (EUR) € 76.88 - -0.24 0.00 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Mir. Conv. Bds Glb A USD $ 117.67 - 0.12 0.00 OTP Avantisro RON 8.55 - 0.00 - Veritas Funds Plc
representation as to their accuracy or completeness and
Global Val.Cr.Fd GBP Ord Acc £ 177.54 - -0.15 0.00 Euro Bond - Inst Acc € 22.91 - -0.04 0.00 Renminbi Bond Fund GBP Cls A £ 163.18 - -0.46 3.68 they should not be relied upon when making an
Em Stars Equities (EUR) € 176.99 - -1.71 0.00 www.veritas-asset.com investment decision.
Mir. - Eq Asia ex Jap A $ 176.04 - 3.53 0.00 OTP Euro Bond € 12.41 - 0.00 - +353 1 635 6799
Global Val.Cr.Fd USD Ord Acc $ 166.60 - -0.14 0.00 Euro Credit - Inst Acc € 14.85 - -0.02 0.00 Renminbi Bond Fund SGD Cls A S$ 161.06 - -0.49 3.63 FCA Recognised
Emerging Markets Equities (EUR) € 148.18 - -2.03 0.00 The sale of interests in the funds listed on these pages
Mir. - Eq Glb Emrg Mkt A USD $ 89.29 - 1.34 0.00 OTP Dollar Bond $ 10.59 - 0.00 - Institutional may, in certain jurisdictions, be restricted by law and
Global Val.Cr.Fd EUR Ord Acc € 155.20 - -0.15 0.00 Euro Income Bond - Inst Acc F € 13.05 - -0.01 0.00 Renminbi Bond Fund YEN Cls A ¥ 19852.02 - -54.52 0.00 the funds will not necessarily be available to persons in
Flex-o-Rente (EUR) € 109.63 - 0.05 0.00 all jurisdictions in which the publication circulates.
Mir. - Eq Global Focus A USD $ 103.47 - -0.32 0.00 OTP Premium Return RON 1074.34 - 1.32 - Veritas Asian Fund A USD H $ 318.30 - 4.36 0.43
Persons in any doubt should take appropriate
Swiss Select Equity Inst Acc SFr 117.08 - 0.78 0.00 Euro Long Average Duration - Inst Acc € 21.87 - -0.14 0.00 Renminbi Bond Fund EUR Cls A € 110.68 - -0.29 3.89 professional advice. Data collated by Morningstar. For
Glob.Consumer Trends Equities (EUR) € 163.23 - -0.27 0.00
Mir. -Eq Spain A € 27.03 - 0.20 0.00 Veritas Asian Fund A GBP H £ 390.44 - 3.87 0.24 other queries contact reader.enquiries@ft.com +44
Swiss Select Equity Ord Acc SFr 115.79 - 0.78 0.00 Euro Low Duration Fund Inst Acc € 11.32 - 0.00 0.00 (0)207 873 4211.
High Yield Bonds (EUR) € 124.36 - -0.42 0.00
Mir. - Eq Swiss Sm/Mid A SFr 335.52 - 2.89 0.00 Veritas Asian Fund A EUR H € 340.66 - 4.28 0.21
US Growth USD Ord Acc $ 213.85 - -1.79 0.00 Euro Real Return - Inst Acc € 13.73 - 0.02 0.00
The fund prices published in this edition along with
Lux -O- Rente (EUR) € 140.99 - 0.13 0.00 additional information are also available on the
Mir. - Glb High Yield Bds A $ 108.39 - 0.18 - Veritas China Fund A USD $ 142.82 - 1.74 0.36 Financial Times website, www.ft.com/funds. The
US Growth EUR Ord Acc € 204.65 - -1.80 0.00 Euro Short-Term Inst Acc € 12.29 - 0.00 0.00 funds published on these pages are grouped together by
New World Financials (EUR) € 56.16 - -0.05 0.00 fund management company.
Mir. - Glb Eq High Income A USD $ 100.87 - -0.09 0.00 Veritas China Fund A GBP £ 147.90 - 1.79 0.37
US Growth GBP Ord Acc £ 215.15 - -1.81 0.00 Euro Ultra Long Duration - Inst Acc € 28.66 - -0.21 0.00
US Premium Equities (EUR) € 185.33 - 0.09 0.00 Prices are in pence unless otherwise indicated. The
Mir. - Glb Inv Grade Bds A € 101.31 - -0.08 - Permal Investment Mgmt Svcs Ltd Veritas China Fund A EUR € 141.45 - 1.74 0.37
change, if shown, is the change on the previously
US Growth USD Inst Acc $ 197.47 - -1.63 0.00 www.permal.com Global Advantage - Inst Acc $ 11.98 - -0.03 0.00
US Premium Equities (USD) $ 207.21 - 0.11 0.00 E.I. Sturdza Strategic Management Limited (GSY) quoted figure (not all funds update prices daily). Those
Mir. - Glb Strat. Bd A USD $ 104.86 - 0.07 0.00 Other International Funds Regulated Veritas Global Equity Income Fund D USD $ 117.07 - 0.47 4.11 designated $ with no prefix refer to US dollars. Yield
Wealthy Nat Bd EUR Inst Inc € 109.53 - -0.09 3.77 Global Advantage Real Return Fund Inst Acc $ 8.43 - -0.08 0.00 percentage figures (in Tuesday to Saturday papers)
Offshore Fund Class A US $ Shares
Nippon Growth Fund Limited ¥ 106124.00 - -697.00 0.00 allow for buying expenses. Prices of certain older
Veritas Global Equity Income Fund D EUR € 214.01 - 0.35 3.91 insurance linked plans might be subject to capital gains
Wealthy Nat Bd GBP Inst Inc £ 113.74 - -0.09 3.61 Investment Holdings N.V. $ 5437.88 - 160.86 0.00 Global Bond - Inst Acc $ 27.95 - -0.01 0.00 tax on sales.
MW Japan Fund Plc (IRL) Strat Evarich Japan Fd Ltd JPY ¥ 94090.00 - -2364.00 0.00
Veritas Global Equity Income Fund D GBP £ 150.80 - -0.14 4.08
FCA Recognised Macro Holdings Ltd $ 4125.71 - -83.51 0.00
Wealthy Nat Bd EUR Ord Inc € 108.72 - -0.09 3.53 Global Bond Ex-US - Inst Acc $ 19.61 - -0.02 0.00 Guide to pricing of Authorised Investment Funds
Strat Evarich Japan Fd Ltd USD $ 931.25 - -24.08 0.00 (compiled with the assistance of the IMA. The
MW Japan Fund PLC A $ 25.82 - 0.34 - Veritas Global Focus Fund D USD $ 26.10 - -0.01 0.64
Fixed Income Holdings N.V. $ 366.06 - 2.19 - Investment Management Association, 65 Kingsway,
Wealthy Nat Bd GBP Ord Inc £ 114.32 - -0.09 3.34 Global High Yield Bond - Inst Acc $ 19.90 - 0.03 0.00 London WC2B 6TD. Tel: +44 (0)20 7831 0898.)
MW Japan Fund PLC B $ 26.03 - 0.34 - Veritas Global Focus Fund D EUR € 24.80 - -0.06 0.61
Wealthy Nat Bd USD Ord Inc $ 111.24 - -0.09 3.32 Permal Absolute Return Fund $ 163.11 - 0.59 0.00 Global Investment Grade Credit - Inst Income $ 12.16 - 0.00 3.65 E.I. Sturdza Funds PLC (IRL) OEIC: Open-Ended Investment Company. Similar to a
S W Mitchell Capital LLP (CYM)
MW Japan Fund PLC C $ 101.69 - 1.41 - Regulated Veritas Global Focus Fund D GBP £ 29.38 - -0.15 0.63 unit trust but using a company rather than a trust
New Capital Alternative Strategies Regulated structure.
Global Investment Grade Credit Fund Inst Acc € € 12.07 - 0.03 0.00
Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 1126.26 - -12.61 0.00
All Weather Fd USD Cls $ 117.78 - 0.27 0.00 S W Mitchell European Fund Class A EUR € 334.37 - 23.63 - Veritas Global Focus Fund A GBP £ 28.37 - -0.15 0.36
Different share classes are issued to reflect a different
Global Investment Grade Credit Fund Inst Acc $ $ 16.63 - 0.00 0.00 currency, charging structure or type of holder.
Morant Wright Funds (Ireland) PLC (IRL)
S W Mitchell Small Cap European Fund Class A EUR € 233.97 - 4.05 -
Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1326.34 - -14.80 0.00
All Weather Fd EUR Cls € 105.81 - 0.21 0.00 Veritas Global Focus Fund A EUR € 14.46 - -0.04 0.35
FCA Recognised
Global Multi-Asset - Inst Acc $ 14.57 - -0.05 0.00 Selling price:Also called bid price. The price at which
Nippon Growth (UCITS) Fund JPY Class A shares ¥ 104108.00 - -1152.00 0.00
Morant Wright Fuji Yield EUR Acc Hedged € 11.68 - 0.07 - All Weather Fd GBP Cls £ 114.00 - 0.29 0.00 The Charlemagne Fund EUR € 323.41 - -9.82 - Veritas Global Focus Fund A USD $ 25.20 - 0.00 0.37 units in a unit trust are sold by investors.
Global Real Return - Inst Acc $ 18.06 - -0.02 0.00
Asset Management Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 87298.00 - -966.00 0.00
Morant Wright Fuji Yield EUR Dist Hedged € 11.57 - 0.08 - Tactical Opps USD Cls $ 144.31 - 0.25 0.00
Pictet Asset Management (Europe) SA
15, Avenue J.F. Kennedy L-1855 Luxembourg
(LUX) Income Fund Inst Acc $ 12.39 - -0.01 0.00
S W Mitchell Capital LLP (IRL) Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 82212.00 - 968.00 0.00
Asset Management
Veritas Global Focus Fund C GBP £ 30.80 - -0.16 0.00 Buying price: Also called offer price. The price at
which units in a unit trust are bought by investors.
Includes manager’s initial charge.
Morant Wright Fuji Yield GBP Acc Hedged £ 12.00 - 0.09 0.00 Tactical Opps EUR Cls € 120.88 - 0.24 0.00 Veritas Global Focus Fund C EUR € 26.12 - -0.07 0.00
Tel: 0041 58 323 3000 Regulated
Inflation Strategy Fund Inst Acc $ 8.77 - -0.05 0.00 Single price: Based on a mid-market valuation of the
FCA Recognised Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 56510.00 - -623.00 0.00
Morant Wright Fuji Yield GBP Dist Hedged £ 11.67 - 0.09 - SWMC European Fund B EUR € 15950.01 - 85.24 0.00 Veritas Global Focus Fund C USD $ 27.42 - -0.01 0.00 underlying investments. The buying and selling price
Tactical Opps GBP Cls £ 135.86 - 0.28 0.00
Low Average Duration - Inst Acc $ 14.79 - 0.00 0.00 for shares of an OEIC and units of a single priced unit
Pictet-Absl Rtn Fix Inc-HI EUR € 106.41 - 0.10 0.00 Strategic China Panda Fund USD $ 2224.01 - -7.12 0.00
SWMC UK Fund B £ 11733.02 - 31.94 0.00
trust are the same.
Morant Wright Fuji Yield USD Acc Hedged $ 11.66 - 0.08 0.00 Veritas Global Equity Income Fund A GBP £ 144.53 - -0.14 4.09
Pictet-Absl Rtn Glo Div-I EUR F € 124.72 - 0.16 0.00 PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $ 8.30 - -0.16 0.00
Strategic China Panda Fund Hedged EURO € 2169.02 - -7.32 0.00 Treatment of manager’s periodic capital charge:
Morant Wright Fuji Yield USD Dist Hedged $ 11.70 - 0.09 2.09 SWMC Small Cap European Fund B EUR € 13579.14 - 127.02 0.00 Veritas Global Equity Income Fund A EUR € 207.93 - 0.34 3.91 The letter C denotes that the trust deducts all or part of
Pictet-Agriculture-I EUR F € 194.95 - 1.71 0.00 PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 10.98 - -0.05 0.00 the manager’s/operator’s periodic charge from capital,
Strategic China Panda Fund Hedged Sterling £ 2197.56 - -7.08 0.00 contact the manager/operator for full details of the
Morant Wright Fuji Yield YEN Acc ¥ 1203.08 - 8.88 0.00 SWMC Emerging European Fund B EUR € 9526.29 - 26.16 0.00 Veritas Global Equity Income Fund A USD $ 112.67 - 0.45 4.11
effect of this course of action.
Pictet-Asian Equities Ex Japan-I USD F $ 205.75 - 2.95 0.00 PIMCO RAE Fundam.PLUS US Inst Acc $ 12.35 - -0.05 0.00
Strategic Euro Bond Accumulating Class CHFSFr 987.64 - 0.52 0.00
Morant Wright Fuji Yield B YEN Acc ¥ 1063.11 - 8.83 - Veritas Global Equity Income Fund C GBP £ 173.69 - -0.16 - Exit Charges: The letter E denotes that an exit charge
Pictet-Asian Local Currency Debt-I USD F $ 151.78 - 0.12 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.70 - -0.04 0.00 may be made when you sell units, contact the
Strategic Euro Bond Institutional Class EUR € 1013.04 - 0.24 0.00
Morant Wright Fuji Yield YEN Dist ¥ 1178.12 - 8.69 2.08 Northwest Investment Management (HK) Ltd Veritas Global Equity Income Fund C EUR € 249.75 - 0.41 - manager/operator for full details.
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Pictet-Biotech-I USD F $ 845.09 - -17.45 0.00 StocksPLUS{TM} - Inst Acc $ 23.45 - -0.13 0.00
Strategic Euro Bond Fund Accumulating Class Shares € 1135.94 - 0.24 0.00 Time: Some funds give information about the timing of
Morant Wright Sakura Fund Sterling Acc Hedged £ 14.63 - 0.20 0.00 Other International Funds Veritas Global Equity Income Fund C USD $ 134.53 - 0.54 -
price quotes. The time shown alongside the fund
Pictet-Brazil Index I USD $ 35.95 - -2.17 0.00 Total Return Bond - Inst Acc $ 27.13 - 0.02 0.00 manager’s/operator’s name is the valuation point for
Northwest $ class $ 2382.42 - 14.15 0.00 Strategic Euro Bond Fund Distributing Class Shares € 1025.14 - 0.22 1.33
Morant Wright Sakura Fund Euro Acc Hedged € 14.60 - 0.20 0.00 Veritas Global Real Return Fund A USD $ 20.38 - -0.08 0.30 their unit trusts/OEICs, unless another time is indicated
Pictet-CHF Bonds I CHF SFr 509.51 - -1.00 0.00 UK Corporate Bond - Inst Acc £ 17.32 - -0.01 0.00 by the symbol alongside the individual unit trust/OEIC
Northwest Warrant $ class $ 1969.35 - -444.40 0.00 Strategic European Smaller Companies Fund EUR Class € 997.97 - 8.47 - name.
Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1490.61 - 20.42 0.00 RobecoSAM (LUX) Veritas Global Real Return Fund A GBP £ 11.42 - -0.04 0.32
Pictet-China Index I USD $ 106.32 - -0.33 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 19.24 - -0.03 0.00 Tel. +41 44 653 10 10 http://www.robecosam.com/
Strategic Global Bond RMB Acc $ 1059.62 - -2.47 0.00 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
Morant Wright Sakura Fund Dollar Acc Hedged $ 14.54 - 0.20 0.00 Regulated Veritas Global Real Return Fund A EUR € 12.03 - -0.05 0.12 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Pictet-Clean Energy-I USD F $ 81.13 - 0.49 0.00 UK Low Duration - Inst Acc £ 14.07 - 0.00 0.00 RobecoSAM Sm.Energy/A £ 11.25 - 0.02 1.69 midnight. Daily dealing prices are set on the basis of
Strategic Global Bond USD Acc $ 1042.49 - 0.66 0.00 Retail the valuation point, a short period of time may elapse
Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 14.48 - 0.20 0.00
before prices become available.Historic pricing: The
Pictet-Digital Communication-I USD F $ 265.31 - 0.09 0.00 UK Real Return - Inst Acc £ 22.95 - -0.03 0.00 RobecoSAM Sm.Energy/N € 12.14 - 0.05 0.00 Veritas Asian Fund B USD $ 222.08 - 2.76 0.00
Strategic US Momentum and Value Fund $ 789.51 - -4.40 0.00 letter H denotes that the managers/operators will
normally deal on the price set at the most recent
Pictet-Eastern Europe-I EUR F € 282.53 - 0.53 0.00 UK Sterling Long Average Duration - Inst Acc £ 21.76 - -0.03 0.00 valuation. The prices shown are the latest available
RobecoSAM Sm.Materials/A £ 124.13 - -0.19 1.42 Strategic US Momentum & Value Fund USD I Class $ 524.19 - -2.90 0.00 Veritas Asian Fund B GBP £ 287.94 - 2.88 0.00
before publication and may not be the current dealing
levels because of an intervening portfolio revaluation or
Pictet-Em Lcl Ccy Dbt-I USD F $ 154.36 - -0.33 0.00 Unconstrained Bond - Inst Acc $ 11.89 - -0.02 0.00 RobecoSAM Sm.Materials/N € 152.34 - 0.22 0.00 Veritas Asian Fund B EUR € 251.14 - 3.11 0.00 a switch to a forward pricing basis. The
Oasis Crescent Management Company Ltd Strategic US Momentum and Value EUR Hedged Class EUR € 551.30 - -3.13 0.00
managers/operators must deal at a forward price on
Other International Funds US High Yield Bond Fund Inst Acc $ 27.37 - 0.05 0.00
request, and may move to forward pricing at any time.
Pictet-Emerging Markets-I USD F $ 473.81 - 5.48 0.00 RobecoSAM Sm.Materials/Na € 105.12 - 0.15 - Strategic US Momentum and Value CHF Hedged Class CHFSFr 548.90 - -2.98 0.00 Veritas China Fund B GBP £ 143.38 - 1.73 0.00 Forward pricing: The letter F denotes that that
Oasis Crescent Equity Fund R 9.32 - 0.07 0.00 managers/operators deal at the price to be set at the
Pictet-Emerging Markets Index-I USD F $ 211.48 - -3.17 0.00 RobecoSAM Gl.Small Cap Eq/A £ 77.94 - -0.17 1.30 Veritas China Fund B EUR € 163.91 - 1.09 0.00 next valuation.
Morgan Stanley Investment Funds (LUX)
6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61 Pictet-Emerging Corporate Bonds I USD $ 106.61 - -0.09 0.00 RobecoSAM Gl.Small Cap Eq/N € 165.67 - 0.14 0.00 The Hartford International Funds (IRL) Veritas Global Focus Fund B USD $ 18.20 - -0.01 0.00
Investors can be given no definite price in advance of
www.morganstanleyinvestmentfunds.com Oasis Global Mgmt Co (Ireland) Ltd (IRL) Regulated the purchase or sale being carried out. The prices
appearing in the newspaper are the most recent
FCA Recognised Regulated Pictet-Emerging Markets High Dividend I USD $ 93.20 - 0.84 0.00 RobecoSAM Sustainable Gl.Eq/B € 190.12 - -0.03 0.00 Gbl Govt Bond (Ex Japan) Index (GBP) £ 1581.01 - -2.80 0.00 Veritas Global Focus Fund B GBP £ 21.69 - -0.11 0.00 provided by the managers/operators. Scheme
Oasis Global Investment (Ireland) Plc particulars, prospectus, key features and reports: The
US Advantage A F $ 59.40 - 0.07 0.00 most recent particulars and documents may be obtained
Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.00 0.79 Pictet-Emerging Markets Sust Eq I USD $ 82.79 - -1.60 0.00 RobecoSAM Sustainable Gl.Eq/N € 164.02 - -0.02 0.00 UK Corporate Bond £ 1576.91 - -1.88 0.00 Veritas Global Focus Fund B EUR € 17.23 - -0.04 0.00 free of charge from fund managers/operators. *
Asian Equity A F $ 41.50 - 0.69 0.00 Indicates funds which do not price on Fridays.
Oasis Global Equity $ 27.28 - 0.24 0.23 Pictet-Environmental Megatrend Sel I EUR € 170.51 - 0.82 0.00 Platinum Capital Management Ltd RobecoSAM S.HealthyLiv/B € 180.58 - -0.89 0.00 Gilt £ 1584.03 - -3.40 0.00 Veritas Global Equity Income Fund B GBP £ 132.96 - -0.12 4.11
Asian Property A F $ 17.73 - 0.31 0.00 Other International Funds Charges for this advertising service are based on the
Oasis Crescent Global Investment Fund (Ireland) plc Pictet-EUR Bonds-I F € 559.49 - -0.57 0.00 number of lines published and the classification of the
RobecoSAM S.HealthyLiv/N € 168.22 - -0.82 0.00 Global Eq (Ex Japan) Index Fund ¥ 1.40 - -0.01 0.00 Veritas Global Equity Income Fund B EUR € 190.81 - 0.31 3.93
Platinum All Star Fund - A $ 117.22 - - - fund. Please contact data@ft.com or call
Asian Property AX F £ 10.86 - 0.17 0.54 Oasis Crescent Global Equity Fund $ 27.84 - 0.27 0.00 +44 (0)20 7873 3132 for further information.
Pictet-EUR Corporate Bonds Ex Fin i EUR € 143.94 - -0.11 0.00 RobecoSAM S.HealthyLiv/Na £ 102.96 - -0.81 - Global Eq (ex Japan) Class HJ4 ¥ 1.46 - 0.00 0.00 Veritas Global Equity Income Fund B USD $ 111.69 - 0.44 4.13
Platinum Global Dividend Fund - A $ 57.25 - - -
Diversified Alpha Plus A F € 29.87 - -0.05 0.00 Oasis Crescent Variable Balanced Fund £ 10.28 - -0.01 0.59
Pictet-EUR Corporate Bonds-I F € 200.56 - -0.11 0.00 RobecoSAM S.Water/A £ 169.43 - -0.54 1.21 Global Eq (ex Japan) Class JP5 ¥ 1.60 - 0.00 0.00 Veritas Global Real Return Fund B USD $ 19.78 - -0.08 0.00
Platinum Global Dividend UCITS Fund $ 68.44 - -0.03 5.11
Emerg Europ, Mid-East & Africa Eq A F € 69.75 - -0.49 0.00 OasisCresGl Income Class A $ 10.84 - 0.00 2.40
Pictet-EUR Government Bonds I EUR € 159.45 - -0.26 0.00 RobecoSAM S.Water/N € 173.75 - -0.04 0.00 Global Eq Ex Japan Index Fund (Hedge) ¥ 1.46 - 0.00 0.00 Veritas Global Real Return Fund B GBP £ 11.21 - -0.04 0.00
Platinum Essential Resources UCITs Fund $ 5.24 - -0.06 0.00
Emerging Markets Debt A F $ 75.88 - -0.23 0.00 OasisCresGl LowBal D ($) Dist $ 11.72 - 0.01 0.00
Pictet-EUR High Yield-I F € 242.65 - 0.16 0.00 Gbl Govt Bond (Ex Japan) Index ¥ 1.34 - 0.00 0.00 Veritas Global Real Return Fund B EUR € 12.87 - -0.05 0.00
Platinum Maverick Enhanced Fund Limited $ 95.43 - - 0.00
Emerging Markets Domestic Debt AX F £ 10.34 - -0.01 5.50 OasisCresGl Med Eq Bal A ($) Dist $ 11.93 - 0.02 0.32
Pictet-EUR Short Mid-Term Bonds-I F € 137.08 - 0.01 0.00 Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.32 - 0.01 0.00
Emerging Markets Equity A F $ 33.50 - 0.29 0.00 Oasis Crescent Gbl Property Eqty $ 9.42 - -0.02 2.07
Pictet-EUR Short Term HY I EUR € 119.93 - -0.01 0.00
Veritas Asset Management LLP
Japan Equity Index Fund ¥ 1.10 - 0.01 0.00 www.veritas-asset.com
Euro Bond A F € 15.81 - -0.01 0.00
Other International Funds
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 102.99 - 0.00 0.00 Japan Equity Class JP3 ¥ 1.34 - 0.02 0.00
Euro Corporate Bond AX F £ 21.09 - 0.04 1.52 Real Return Asian Fund USD (Est) € 283.85 - 2.64 0.00
Pictet-Euroland Index IS EUR € 140.01 - 0.92 0.00 Schroder Property Managers (Jersey) Ltd
Euro Strategic Bond A F € 43.71 - -0.02 0.00 Other International Funds Real Return Asian Fund GBP £ 299.90 - 0.17 0.00
Pictet-Europe Index-I EUR F € 179.23 - 0.73 0.00 The National Investor (TNI)
Polar Capital Funds Plc (IRL) Indirect Real Estate SIRE £ 133.22 139.31 0.83 2.34 www.tni.ae
European Currencies High Yield Bd A F € 21.76 - 0.01 0.00 Regulated Real Return Asian Fund EUR (Est) $ 299.38 - 2.67 0.00
Pictet-European Equity Selection-I EUR F € 659.97 - 2.80 0.00 Other International Funds

European Equity Alpha A F € 45.11 - 0.03 0.00 Asian Financials I USD $ 281.13 281.13 3.08 0.00 TNI Blue Chip UAE Fund * AED 9.73 - -0.11 0.00
Odey Asset Management LLP (CYM)
Pictet-European Sust Eq-I EUR F € 255.79 - 1.15 0.00
Regulated SIA (SIA Funds AG) (LUX)
Waverton Investment Funds Plc (1600)F (IRL)
European Property A F € 37.28 - 0.41 0.00 Biotechnology I USD $ 18.20 18.20 -0.29 0.00 Regulated TNI Funds Ltd (BMU)
OEI Mac Inc GBP A £ 362.17 - 14.98 0.00 Pictet-Global Bds Fundamental I USD $ 115.54 - -0.04 0.00 waverton.investments@citi.com
LTIF Classic € 349.12 - 1.59 0.00 MENA Hedge Fund $ 945.66 - 2.84 0.00 FCA Recognised
Eurozone Equity Alpha A F € 12.17 - 0.00 0.00 European Income Acc EUR € 12.13 12.13 0.03 0.00
OEI Mac Inc GBP B £ 197.72 - 8.75 0.00 Pictet-Global Bonds-I EUR € 167.55 - 0.27 0.00 TNI Funds Plc (Ireland) Waverton Asia Pacific A USD $ 17.53 - 0.19 5.27
European Ex UK Inc EUR Acc € 10.29 10.29 0.04 - LTIF Natural Resources € 73.95 - 0.87 0.00
Global Bond A F $ 38.17 - 0.04 0.00
OEI MAC Inc USD $ 1933.42 - 78.16 0.00 Pictet-Global Emerging Currencies-I USD F $ 96.48 - 0.11 0.00 MENA UCITS Fund * $ 1100.03 - 0.92 0.00
Waverton Global Bond Fund Cls A $ 8.81 - 0.01 5.41
Financial Opps I USD $ 12.43 - -0.01 2.13 LTIF Stability A ACCU € 168.52 - 1.03 0.00
Global Brands A F $ 100.19 - 0.24 0.00
Odey European Inc EUR € 842.77 - 31.53 0.00 Pictet-Global Emerging Debt-I USD F $ 358.47 - -0.04 0.00 Waverton Global Equity Fund A GBP £ 13.74 - -0.10 0.58
Global Convertible Bond A F $ 43.06 - 0.02 0.00 GEM Growth I USD $ 8.40 - -0.11 0.00
Odey European Inc GBP A £ 323.71 - 12.01 0.00 Pictet-Global Megatrend Selection-I USD F $ 226.73 - -0.19 0.00 SIA (SIA Funds AG) (CH) Waverton UK Fund A GBP £ 13.57 - 0.04 1.83
Global Property A F $ 27.98 - 0.27 0.00 GEM Income I USD $ 9.32 - -0.13 0.00 Other International Fds
Odey European Inc GBP B £ 183.69 - 6.82 0.00 Pictet-Greater China-I USD F $ 452.40 - 9.86 0.00 Waverton Equity Fund A GBP £ 14.91 - -0.04 0.19
Indian Equity A F $ 34.84 - 0.00 0.00 Global Alpha I USD $ 12.95 12.95 -0.02 0.00 LTIF Stability Growth SFr 196.60 - 0.20 -
Odey European Inc USD $ 388.19 - 14.14 0.00 Pictet-Health-I USD $ 272.66 - -3.13 0.00 Waverton Sterling Bond Fund A GBP £ 9.48 - 0.00 5.31
Latin American Equity A F $ 37.55 - -0.23 0.00 Global Convertible I USD $ 11.41 11.41 -0.04 0.00 LTIF Stability Inc Plus SFr 174.60 - 0.10 5.80
Giano Capital EUR Inc € 4453.26 - 0.00 0.00 Pictet-High Dividend Sel I EUR F € 161.76 - 0.15 0.00 Toscafund Asset Management LLP (UK)
Global Insurance I GBP £ 4.19 - -0.01 0.00 www.toscafund.com
Short Maturity Euro Bond A F € 20.41 - 0.00 0.00
Pictet-India Index I USD $ 94.20 - -0.23 0.00 Authorised Funds WA Fixed Income Fund Plc (IRL)
Standard Life Wealth (JER) Regulated
US Dollar Liquidity A F $ 13.03 - 0.00 0.00 Global Technology I USD $ 24.03 - 0.00 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Aptus Global Financials B Acc £ 3.20 - 0.00 4.53
Odey Asset Management LLP (IRL)
Pictet-Indian Equities-I USD F $ 441.25 - 1.76 0.00 European Multi-Sector € 118.26 - -0.12 0.00
FCA Recognised FCA Recognised
US Growth A F $ 69.77 - 0.23 0.00 Healthcare Blue Chip Fund I USD Acc $ 10.52 10.52 -0.11 0.00 Aptus Global Financials B Inc £ 2.83 - 0.00 4.53
Standard Life Offshore Strategy Fund Limited
Odey Pan European EUR R € 358.60 - 2.27 0.00 Pictet-Japan Index-I JPY F ¥ 16924.90 - 239.63 0.00
US Growth AH F € 48.21 - -0.04 0.00 Healthcare Opps I USD $ 38.26 - -0.28 0.00 Bridge Fund £ 1.6554 - -0.0014 1.94
Odey Absolute Return Focus Fund $ - - - - Pictet-Japanese Equities Opp-I JPY F ¥ 10234.40 - 152.44 0.00
Income Opportunities B2 I GBP Acc £ 1.73 1.73 0.00 0.00 Diversified Assets Fund £ 1.1907 - 0.0009 2.99 Toscafund Asset Management LLP (CYM)
US Growth AX F £ 46.23 - 0.01 0.00
Odey Allegra European EUR O € 266.96 - 0.40 0.00 Pictet-Japanese Equity Selection-I JPY F ¥ 15266.94 - 230.41 0.00 www.toscafund.com
Regulated
US Property A F $ 68.55 - -0.22 0.00 Japan Alpha I JPY ¥ 220.54 220.54 3.21 0.00 Global Equity Fund £ 1.9354 - -0.0043 1.01
Odey Allegra International EUR O € 184.42 - 0.48 0.00 Pictet-LATAM Index I USD $ 49.24 - -1.87 0.00 Tosca A USD (Est) $ 302.50 - 5.17 0.00
Japan I JPY ¥ 2214.54 - 31.28 0.00 Global Balanced Fund - Income Units £ 1.3670 - -0.0031 1.84
Odey Allegra Developed Markets USD I $ 134.33 - 0.14 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 107.72 - -2.01 0.00 Tosca Mid Cap GBP £ 259.26 - 0.54 0.00 Yuki International Limited (IRL)
Morgens Waterfall Vintiadis.co Inc North American I USD $ 17.93 17.93 -0.06 0.00 Global Balanced Fund - Accumulations Units £ 1.5866 - -0.0037 1.82 Tel +44-20-7269-0207 www.yukifunds.com
Other International Funds Odey European Focus Fund € 18.12 - 0.01 0.49 Pictet-Pacific Ex Japan Index-I USD F $ 323.18 - -0.09 0.00 Tosca Opportunity B USD $ 357.47 - 5.56 0.00 Regulated
UK Absolute Equity I GBP £ 12.74 12.74 -0.03 0.00 Global Fixed Interest Fund £ 0.9957 - 0.0008 5.05 Yuki Mizuho Umbrella Fund
Phaeton Intl (BVI) Ltd (Est) $ 412.40 - 8.01 0.00
Odey Atlas Fund GBP I S £ 1.15 - 0.00 0.00 Pictet-Premium Brands-I EUR F € 161.89 - 0.16 0.00
Sterling Fixed Interest Fund £ 0.8465 - -0.0011 4.18 Yuki Mizuho Japan Dynamic Growth ¥ 7250.00 - 56.00 0.00
Odey Giano European Fund EUR R € 116.96 - 0.16 0.00 Pictet-Quality Global Equities I USD $ 135.38 - 0.23 0.00
Polar Capital LLP (CYM) Yuki Mizuho Japan Large Cap ¥ 778.00 - -3133.00 0.00
UK Equity Fund £ 1.9632 - 0.0075 2.64
Regulated
Odey Naver Fund EUR I € 127.18 - -0.57 0.00 Pictet-Russia Index I USD $ 50.69 - -0.88 0.00
ALVA Convertible A USD $ 128.85 - 0.86 0.00 Yuki Japan Low Price ¥ 27612.00 - 144.00 0.00
Odey Odyssey USD I $ 151.56 - -0.06 0.00 Pictet-Russian Equities-I USD F $ 44.66 - -0.20 0.00
European Conviction A EUR € 139.75 - -3.36 0.00 Yuki Japan Value Select ¥ 12900.00 - 67.00 0.00
Odey Orion Fund EUR I € 122.13 - -0.49 0.00 Pictet-Security-I USD F $ 205.43 - 0.60 0.00 YMR Umbrella Fund
European Forager A EUR € 174.69 - -3.67 0.00
Natixis International Funds (Lux) I SICAV (LUX)
Odey Swan Fund EUR I € 91.02 - -0.62 0.00 Pictet-Select-Callisto I EUR € 106.76 - 0.68 0.00 YMR N Growth ¥ 17843.00 - 140.00 0.00
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
FCA Recognised Yuki Asia Umbrella Fund
Odey European Absolute Return GBP S £ 96.48 - -0.26 0.00 Pictet-Small Cap Europe-I EUR F € 1170.78 - 13.68 0.00 TreeTop Asset Management S.A. (LUX)
Harris Global Equity R/A (USD) $ 264.62 264.62 -0.07 0.00 Polunin Capital Partners Ltd Regulated
Stenham Asset Management Inc Yuki Japan Rebounding Growth Fund JPY Class ¥ 24307.00 - 172.00 0.00
Other International Funds TreeTop Convertible Sicav
Pictet-ST.MoneyMkt-I € 140.48 - 0.00 0.00 www.stenhamassetmanagement.com
Harris US Equity Fund R/A (USD) $ 214.03 214.03 -0.30 0.00 Emerging Markets Active $ 40.93 - -0.92 - Other International Funds Yuki Japan Rebounding Growth Fund USD Hedged Class $ 966.55 - 6.48 -
Odey Wealth Management (CI) Ltd (IRL) International A € 313.46 - 1.69 0.00
Pictet-ST.MoneyMkt JPY I USD ¥ 101523.30 - 0.75 0.00
www.odey.com/prices Stenham Asia USD $ 130.04 - 6.40 -
Harris Concentrated US Equity R/A (USD) $ 164.72 164.72 0.70 0.00 Luxcellence Em Mkts Tech $ 948.65 - 55.69 0.00
FCA Recognised International B $ 401.07 - 1.97 0.00
Pictet-ST.MoneyMkt-ICHF SFr 124.36 - 0.02 0.00
Loomis Sayles Strategic Alpha R/A (USD) $ 110.55 110.55 0.11 - Odey Opportunity EUR I € 228.80 - 0.18 0.00 Stenham Credit Opportunities A Class USD $ 102.06 - -0.68 0.00 Zadig Gestion (Memnon Fund) (LUX)
Polunin Developing Countries $ 725.30 731.47 -10.75 0.00 International C £ 135.02 - 0.66 0.00 FCA Recognised
Pictet-ST.MoneyMkt-IUSD $ 135.17 - 0.00 0.00
Stenham Equity UCITS USD $ 142.48 - -1.15 0.00
Polunin Discovery - Frontier Markets $ 1359.01 - -22.15 0.00 International D € 290.87 - 1.51 2.94 Memnon European Fund I GBP £ 113.93 - 0.55 0.00
Pictet-Timber-I USD F $ 155.37 - -0.83 0.00
Natixis International Funds (Dublin) I plc (IRL) Omnia Fund Ltd Stenham Growth USD $ 214.90 - 3.75 -
Polunin Small Cap $ 1399.00 1416.49 35.19 0.00 TreeTop Global Sicav
Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Other International Funds
Regulated Pictet Total Ret-Agora I EUR € 115.59 - -0.05 0.00
Stenham Healthcare USD $ 180.64 - 0.66 0.00 Global Opp.A € 145.75 - 0.64 0.00 Zebedee Capital Partners LLP (CYM)
Estimated NAV $ 838.81 - 21.56 0.00
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.28 12.28 -0.02 1.21 Regulated
Pictet Total Ret-Corto Europe I EUR € 137.93 - 0.40 0.00
Private Fund Mgrs (Guernsey) Ltd (GSY) Stenham Managed Fund USD $ 113.66 - 1.13 - Global Opp.B $ 142.23 - 0.52 0.00
Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
Loomis Sayles High Income R/D (USD) $ 8.40 8.40 0.01 14.98 Regulated
Pictet Total Ret-Divers Alpha I EUR € 104.78 - 0.04 0.00
Stenham Macro UCITS USD $ 102.84 - 0.47 - Global Opp.C £ 180.96 - 0.68 0.00
Monument Growth 24/11/2015 £ 487.87 493.35 -1.60 1.01 Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Loomis Sayles Multisector Income R/D (GBP) $ 12.21 12.21 0.01 5.77 Pictet Total Ret-Kosmos I EUR € 109.27 - 0.11 0.00
Stenham Multi Strategy USD $ 116.22 - -0.84 - Sequoia Equity A € 151.61 - 1.62 0.00
Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Pictet Total Ret-Mandarin I USD $ 114.66 - 1.22 0.00
Prusik Investment Management LLP (IRL) Stenham Quadrant USD A $ 394.26 - -1.46 - Sequoia Equity B $ 153.70 - 1.51 0.00
Enquiries - 0207 493 1331
Pictet-US Equity Selection-I USD $ 193.35 - -0.99 0.00
Regulated Stenham Trading Inc USD $ 114.29 - -0.38 - Sequoia Equity C £ 175.03 - 1.75 0.00
Optima Fund Management
Other International Funds Pictet-US High Yield-I USD F $ 145.47 - 0.24 0.00 Prusik Asian Equity Income B Dist $ 160.30 - 1.74 3.83 Data Provided by
Stenham Universal USD $ 431.83 - -0.28 -
Cuttyhunk Fund II Limited $ 1493.83 - -44.79 0.00 Pictet-USA Index-I USD F $ 183.71 - -0.86 0.00 Prusik Asia A $ 197.71 - 1.85 0.00 Unicapital Investments (LUX)
Stenham Universal II USD $ 160.04 - -0.18 0.00 Regulated
New Capital Fund Management Ltd (IRL) JENOP Global Healthcare Fund Ltd $ 14.65 - -0.06 0.00 Pictet-USD Government Bonds-I F $ 633.92 - 0.24 0.00 Prusik Asian Smaller Cos A $ 140.04 - -0.26 0.00
Leconfield House, Curzon Street, London, W1J 5JB Investments III € 5.03 - -22.38 -
FCA Recognised OPTIKA Fund Limited - Cl A $ 101.57 - -3.19 - Pictet-USD Short Mid-Term Bonds-I F $ 129.55 - -0.01 0.00 Stratton Street Capital (CI) Limited (GSY) Investments IV - European Private Eq. € 247.75 260.13 -44.58 -
New Capital UCITS Funds Regulated
Optima Fd NAV $ 90.16 - 0.00 0.00 Purisima Investment Fds (CI) Ltd (JER)
Pictet-USD Sov.ST.Mon.Mkt-I $ 102.60 - 0.00 0.00
Asia Pac Bd USD Inst Inc $ 92.84 - -0.01 3.25 Regulated Investments IV - Global Private Eq. € 366.42 384.74 -49.81 -
Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00
Japan Synthetic Warrant Yen Class ¥ 1921.51 - 15.45 0.00
www.morningstar.co.uk
Pictet-Water-I EUR F € 296.81 - 0.16 0.00 PCG B 172.73 - 1.06 0.00
Asia Pac Bd USD Ord Inc $ 94.63 - -0.01 2.52 Japan Synthetic Warrant GBP Hedged Class £ 198.78 - 36.88 0.00 Data as shown is for information purposes only. No
The Dorset Energy Fd Ltd NAV $ 27.74 - -0.01 0.00 PCG C 170.34 - 1.05 0.00 Value Partners Hong Kong Limited (IRL) offer is made by Morningstar or this publication.
Asia Pac Eq EUR Ord Inc € 86.66 - -0.37 3.37 Japan Synthetic Warrant USD Class $ 20.32 - 0.12 0.00 www.valuepartners.net, fis@vp.com.hk
Platinum Fd Ltd $ 87.07 - 1.41 0.00 Pimco Fds: Global Investors Series Plc (IRL)
Regulated
Asia Pac Eq GBP Ord Inc £ 89.94 - -0.36 3.81 PIMCO Europe Ltd,11 Baker Street,London W1U 3AH Japan Synthetic Warrant USD Hedged Class $ 197.94 - 36.59 0.00
Platinum Fd Ltd EUR € 16.92 - 0.28 0.00 http://gisnav.pimco-funds.com/ Putnam Investments (Ireland) Ltd (IRL) Value Partners Asia ex-Japan Equity Fund $ 8.77 - -0.08 -
Asia Pac Eq USD Ord Inc $ 90.47 - -0.36 3.19 Dealing: +44 20 3640 1000 Regulated Renminbi Bond Fund AUD Cls A A$ 121.94 - -0.41 3.84
Platinum Japan Fd Ltd $ 54.33 - 0.48 0.00 PIMCO Funds: +44 (0)20 3640 1407 Value Partners Classic Equity Fund USD Z Unhedged $ 11.25 - 0.22 0.00
Putnam New Flag Euro High Yield Plc - E € 1020.79 - 0.56 4.27
Asia Pac Eq USD Inst Acc $ 96.03 - -0.38 0.00 FCA Recognised Renminbi Bond Fund AUD Cls B A$ 123.73 - -0.41 3.58
Optima Partners Global Fd $ 14.24 - 0.00 0.00 Value Partners Classic Equity Fund CHF HedgedSFr 11.81 - 0.24 0.00
Capital Securities Inst Acc $ 15.09 - 0.00 0.00
Asia Pac Eq USD Inst Inc $ 101.12 - -0.40 3.90 Renminbi Bond Fund CHF Cls A SFr 118.84 - -0.31 3.90
Optima Partners Focus Fund A $ 15.86 - 1.76 0.00 Value Partners Classic Equity Fund EUR Hedged € 11.92 - 0.23 0.00
Commodity Real Return Fund Inst Acc $ 5.92 - 0.00 0.00
Dyn Europ Eq EUR Ord Inc € 184.43 - 1.21 1.30 Renminbi Bond Fund CHF Cls B SFr 118.56 - -0.31 3.65
Value Partners Classic Equity Fund GBP Hedged £ 12.19 - 0.23 0.00
22 ★ FINANCIAL TIMES Wednesday 2 December 2015

MARKETS & INVESTING

Capital markets
Capital markets

Central banks extend clout in

the age of ‘great divergence’
With two of the world’s
most powerful central
banks holding crucial
meetings this month, the
prospect of a further
divergence in policy
between the US and
eurozone has firmly
influenced markets.
The US Federal Reserve
stands on the cusp of
raising rates for the first
time in nine years, while
the European Central Bank
is expected to cut
borrowing costs and
expand its quantitative
easing programme.
Dropping hints and
raising market
expectations, however,
leaves plenty of scope for
disappointment. Will the
ECB and Fed deliver?
weaken further while the
gap in US and German
bond yields widens. There
could also be a knock-on
effect for central banks in
Europe’s non-euro
countries.
The Swiss National Bank,
the Swedish Riksbank
and the Nationalbank in
Denmark have already cut
their policy rates below
zero. If their currencies
start to rise against the
euro, they may deploy
further cuts.
Switzerland’s benchmark
10-year government
borrowing rate has
dropped to a record of
minus 0.41 per cent, the
lowest of any country on
record, and the trend
shows little sign of slowing.
Puerto Rico avoids defaulting on debt
Development bank makes
last-minute payment as
deficit looms this month
ERIC PLATT
Puerto Rico has avoided defaulting on
more than $350m of its obligations, in
the latest chapter of the island’s struggle
to deal with $72bn in debts.
The commonwealth “narrowly
avoided a complete default that could
have hobbled its government . . . by
resolving to unsustainable financial
gymnastics”, said Richard Blumenthal,
Democratic senator from Connecticut,
at a Congressional hearing yesterday.
In a statement the Government
Development Bank confirmed that it
had paid all principal and interest pay-
ments due on certain outstanding notes.
With cash dwindling, the develop-
ment bank has embarked on extraordi-
nary measures — including delaying tax
returns — to keep its balance from turn-
ing negative. However, those actions are
no longer enough to keep Puerto Rico
from falling into deficit this month.
The island would begin to claw back
revenue from other income sources to
maintain “essential public services”,
said Alejandro García Padilla, the gover-
nor, in testimony in front of the Senate.
He has previously described the debt
burden as “unpayable”.
“We have taken this step in the trust
that Congress will act. But do not be mis-
led. We have no resources left. Puerto
Rico cannot keep this up longer.”
The debt payment yesterday included
$273m of GDB obligations backed by the
commonwealth’s general obligation
guarantee, according to Moody’s. Ana-
lysts with the rating agency had warned
that if Puerto Rico was to default it
would have been on a payment of about
$81m owed by the GDB that, unlike gen-
eral obligation-backed notes, did not
benefit from constitutional protection.
Paper issued by the GDB maturing in
August 2019 traded higher after the
hearing, ticking up to 27.75 cents on the
dollar from 26.64 cents a day earlier,
according to data from the Municipal
Securities Rulemaking Board. They
started the year trading at 63 cents.
“They’ve been on the brink for a long
time,” said David Kotok, chief invest-
ment officer of Cumberland Advisors,
which holds some insured Puerto Rican
debt.
Ted Hampton, an analyst with
Moody’s, said: “The key security here is
the guaranteed-GDB notes because once
those are defaulted on, that has implica-
$350m tions for all of the debt that is protected
by Puerto Rico’s constitution.”
Value of obligations Far larger payments are due on Janu-
met yesterday, out
of a total debt pile ary 1, and Mr Hampton noted that a
of $72bn payment yesterday would not change
Moody’s view that default in the coming
27.75 months was likely.
Trading level, in
Mr García Padilla, who has seen his
cents to the dollar, popularity erode sharply in recent polls,
of GDB paper for alongside flight to the mainland and
2019 yesterday lacklustre economic conditions, testi-
fied alongside the island’s sole member
of Congress, Pedro Pierluisi, and Rich-
ard Carrión, chairman of Banco Popular.
An Obama administration plan put
forward in October, which would amend
the bankruptcy code, instate a financial
control board and extend tax credits to
Puerto Rico, is thought to face high hur-
dles in Congress. Investors object in par-
ticular to holiday bonuses set aside for
the island’s government workers.

What is at stake?
Whatever policymakers in
the US and Europe decide
this month will probably
dictate the investment
tone for the coming year.
If economists and
investors are right, you can
expect to hear a lot more
about the “great
divergence”.
In the eurozone sluggish
growth and inflation far
below the target of just
below 2 per cent have put
pressure on the ECB to
announce fresh stimulus.
Meanwhile strong hiring
at American companies
has cleared the path for US
interest rates to rise.
Bonds, currencies and
equities are already
moving on the expectation
that the Fed and ECB are
about to take sharply
different paths for the first
time since the crisis.
How are markets reacting?
Investors are buying
dollars and selling
Treasuries in the US, and
buying Bunds and selling
the euro in Europe.
The moves have sent
the euro to a seven-month
low against the dollar and
the difference between
two-year government
bond yields in Germany
and the US is close to a
10-year high.
In Europe the possibility
of more monetary easing
has sent equities to a
three-month high and is
pushing up prices for
bonds issued by
neighbouring countries.
What happens now?
Much depends on central
banks themselves.
If the ECB delivers a
hefty dose of easing this
week, the euro may
2-year Treasury yield
Spread over Bunds
2005 07 09
Source: Thomson Reuters Datastream
A potential wild card
would be weaker than
expected US jobs figures
on Friday, which could
undercut the Fed’s
tightening path.
The ECB could also
underwhelm tomorrow.
In either scenario, we can
expect market turbulence.
Is the ECB’s easing effort
working?
Central bankers,
unsurprisingly, say yes.
So far the ECB has taken
the radical step of cutting
its deposit rate below zero,
to minus 0.2 per cent, and
it has purchased more than
half a billion euros of
assets from secondary
markets, mostly in the form
of government and other
public sector bonds.
According to the
policymakers the plan is
having an effect and credit
markets are loosening,
encouraging more of the
sort of lending that should
lead to investment, job
creation and economic
growth.
But with inflation still at
just 0.1 per cent, the move
obviously has not had the
fully desired effect.
So what will the ECB do?
Morgan Stanley thinks it
will add a further €585bn
to its €1.1tn bond-buying
programme; Pictet
expects a 10 basis point
cut to the ECB’s deposit
rate and a six-month QE
extension; Alberto Gallo of
Royal Bank of Scotland
says the ECB might cut
its deposit rate by as much
as 20bp.
When it announced full-
blown QE in January
investors were surprised
by the programme’s size.
The question is whether
the ECB can do it again.
2 tor, released confidential CFTC data
1 positions. In 2012 CME Group, the
0 revealed customers’ positions.
-1
-2
11 13 15
CFTC ‘access to algorithms’ call spreads unease
Proposal for US regulators to
unlock repositories of source
code raises host of concerns
GREGORY MEYER — NEW YORK
PHILIP STAFFORD — LONDON
Futures trading is dominated by com-
puters, and nothing is more valuable
than the “source code” of these high-
powered machines.
Trading groups zealously safeguard
this evolving code — which they call
their “secret sauce” — in online reposi-
tories with strictly controlled access.
But US regulators want access to such
information as they seek to reduce the
risk of a trading accident. It is an idea
that alarms the industry and its ranks of
automated trading firms.
Under a rule proposed last week,
repositories would be open to inspec-
tion by the Commodity Futures Trading
Commission and the US Department of
Justice without a subpoena.
The idea of sharing code with govern-
ment officials is the most controversial
element of the CFTC’s new regulation on
automated trading — Reg AT for short —
which attempts to catch up with the
explosion in automated trading over the
past 10 years.
“While we think that the CFTC’s goal
is perfectly reasonable, it’s inconceiva-
ble that any firm should be expected to
leave its intellectual property on the
doorstep of the government,” says Bill
Harts, chief executive of Modern Mar-
kets Initiative, a trading industry group,
whose members include Hudson River
Trading and Tower Research Capital.
While other elements of the 521-page
document will elicit debate, the source
code aspect raises hackles because of its
inherent secrecy and the federal gov-
ernment’s history on cyber security.
The concerns are twofold. One is that
code obtained by the government might
end up in the hands of third parties. In
2011 Bernie Sanders, the Vermont sena-
identifying traders with large oil and gas
exchange operator, alleged that CFTC
economists had published reports that
More recently hackers in China
breached the US Office of Personnel
Management and obtained records of
more than 21m federal employees —
including those at the CFTC.
The other concern is that a govern-
ment employee who has inspected a
trader’s source code repositories could
Analysis. Trading room
Binary issue: in pass through Washington’s revolving
principle the door and share that lucrative knowl-
CFTC’s goal is edge with a rival trading firm.
‘perfectly Rob Creamer, chairman of FIA Princi-
reasonable’, says pal Traders Group, said last week that
a trading chief, the industry group would “pay particu-
but in practice, larly close attention to the issue of
given the nature access to proprietary algorithms”.
of intellectual According to two futures executives,
property, it is some trading firms use GitHub of San
‘inconceivable’ Francisco as a source code repository
Kacper Pempel/Reuters
service. GitHub says it does not disclose
the code stored in private repositories
without a search warrant.
The repository requirement is just
one element of the rule proposal. For the
first time proprietary trading firms that
use algorithms to connect to exchanges
directly would have to register with the
CFTC, subjecting themselves to man-
dates such as “throttles” governing the
number of orders a firm may place in a
given time. Most firms already use such
risk controls voluntarily, according to
an FIA survey.
Equity trading activity by
market participant in
Europe 2014
Per cent
HFT Investment Other
banks
60
40
20
0
Value Number Number
traded of trades of orders
Manual v automated in CME
futures trading by product
Product ATS (%) Manual (%)
38.1 55.6
Agriculture
Energy 46.9 36.4
Equities 66.6 32.5
FX 79.9 16.8
Interest rate 62.3 33.4
Metals 46.5 48.0
Sources: Esma; CFTC
Others say the CFTC’s rules bring the report by the International Organisa-
agency into line with standards and def- tion for Securities Commissions and the
initions on algorithmic trading that are Bank for International Settlements says
coming into effect elsewhere in the critical market infrastructure such as
industry, either in different asset classes exchanges and clearing houses should
such as US Treasury securities or in be encouraged to consider keeping data
regions, including the forthcoming secure via encryption.
Mifid markets regulations in Europe. The CFTC proposal outlines the risks
“Save for some rules around wash of an out-of-control automated trading
trades, there isn’t anything really we system, citing the role of a faulty auto-
haven’t seen in Europe already, mated execution algorithm in the 2010
although the devil will be in the detail,” “flash crash”, and glitches hitting Knight
says Sam Tyfield, a lawyer at Vedder Capital on the equities market and
Price in London. Goldman Sachs in options trading.
“The rules say EU-registered firms Rick Lane, chief executive of Trading
must keep records of any changes they Technologies, a US software vendor,
make to any software used for trading says: “More and more computers and
for five years, which arguably amounts fewer humans make trading decisions
to them keeping the source code.” as time goes on.”
Even so, he acknowledges, it is likely But the rules will not solve the prob-
to be a sensitive issue in the US. lem of sudden crashes and sharp rises,
As the CFTC’s proposal was unveiled, he adds. “I suspect that even if we get
global supervisors released their own better at preventing them, the number
consultation paper on cyber resilience will remain relatively constant [because
for financial market infrastructures. A software] is not a perfect science.”

Commodities Equities

Corn at 20-month high after S Africa drought UK bank stocks lead the way after stress tests
EMIKO TERAZONO
A prolonged drought and currency
weakness in South Africa have pushed
corn prices to fresh 20-month highs,
raising fears of worsening food infla-
tion in the country and for sub-Saha-
ran grain importers.
The drought, which has hit corn-grow-
ing areas, has delayed planting for the
current crop year. It follows a sharp fall
in the output of corn — a food staple and
source of feed for the livestock industry
— during the previous harvest.
Worries about production come at a
time when the rand has been falling
sharply, making imports more expen-
sive. Although grain prices around the
world have fallen to multiyear lows
thanks to ample harvests, the sharp fall
in the rand versus the US dollar has can-
celled the price declines.
White maize December futures
traded in Johannesburg hit R3,470 a
tonne, the highest level since March last
year, while yellow maize touched
R3,460. White corn is mainly used for
food while yellow corn is used for feed.
Elna Moolman, economist at Mac-
quarie Securities in Johannesburg, said
a potentially smaller crop would make it
more difficult for farmers to access
credit for the new crop year. “People are
very concerned,” she said.
With food prices creeping up because
of the previous poor harvest, the cur-
rent crop’s impact on inflation would
take another six to nine months to come
through, Ms Moolman added. “There
will be phases of pressure on prices.”
The US Department of Agriculture
warned that the South African drought
early in the growing season might “be
the beginning of a severe drought
induced by a strong El Niño which is
forecast to persist until late March”.
The weather phenomenon has tended
to bring dry conditions to South Africa,
reducing corn yields. Sparse rainfall
during October and early November led
to delays for corn planting this year.
When rainfall was sufficient, planting
typically began in early October, said
the USDA.
The USDA cut its corn production
forecast for South Africa by 750,000
tonnes for the current crop year, to
12.75m tonnes. This is still up from the
previous year’s 10.8m, which was 28 per
cent lower than 2013-14.
South Africa is an important supplier
of corn to sub-Saharan Africa, but the
USDA’s forecasts have been cut, with
exports expected at 800,000 tonnes —
almost the same as 2014-15 and less
than half of the 2.1m tonnes in 2013-14.
MICHAEL HUNTER
UK bank stocks helped the FTSE 100
outperform its European peers yester-
day after every lender in the bench-
mark index passed the latest round of
stress tests.
The Bank of England said none of the
lenders surveyed by its Financial Policy
Committee had been required to revise
their capital plans, powering bank
shares in the heavily weighted sector to
the top of the leaderboard in London.
David Lock at Deutsche Bank said the
results “read more positively than we
expected” and provided “clarity around
capital requirements”.
The two companies that came nearest
to failing experienced relief rallies.
Royal Bank of Scotland shares climbed
3.2 per cent to 312.2p, thanks to what
the regulator called “recent actions”
that ensured it would not have to over-
haul levels of core tier one capital, the
lead indicator of balance sheet strength.
The sale of its Citizens unit in the US
and a plan to issue alternative tier one
notes that can convert into equity in the
event of a funding crisis left scrutineers
satisfied with RBS’s capital position,
even after it fell below its individual cap-
ital guidance level this year.
Barclays shares were the leaders on
the FTSE 100, up 4.6 per cent to 233.5p,
while Lloyds was 2.4 per cent higher at
74.7p. HSBC, Europe’s biggest lender
by market capitalisation, rose 1.8 per
cent to 538.9p.
Standard Chartered was the only
faller among the top-tier lenders. The
shares slipped 0.1 per cent to 557.1p
after the FPC endorsed the emerging
markets-focused bank’s $5.1bn rights
issue and restructuring plan. StanChart
fell below its core tier one capital
requirement this year.
“The regulator is sending a dovish
message,” said Joseph Dickerson, equity
analyst at Jefferies. “The overall mes-
sage is the Lloyds sell-off on the back of
stress test concerns was overdone. We
are buyers of Lloyds, RBS and Barclays.”
Kallum Pickering at Berenberg, how-
ever, pointed to potential turbulence for
UK banks, especially in the context of
likely rate rises from central banks in
the US and the UK.
The supportive effect on asset prices
of “low long-term real interest rates”
meant pricing was “vulnerable to both
the manifestation of risks in emerging
economies and/or a sharp increase in
global interest rates”, he said.
The FTSE 100 rose 0.6 per cent, while
the pan-European FTSE Eurofirst 300
ended 0.4 per cent lower.
Wednesday 2 December 2015 ★ FINANCIAL TIMES 23

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Jamie
Chisholm
US stocks shrug aside soft data as S&P 500 index
Change on day 0.65%

hopes of European stimulus rise

This week’s premier risk events are
expected to be tomorrow’s European
Central Bank decision and Friday’s US
non-farm payrolls report.
Together they are seen as
confirming US/EU monetary policy
divergence. But traders could miss out
if they don’t keep an eye on a lot more
besides over the next few days.
Today the ADP US private sector
payrolls survey will be published,
followed later in the session by the
Federal Reserve’s Beige Book, a survey
of economic conditions.
A flurry of speakers from the US
central bank are lined up, including
Janet Yellen, the chair, testifying
before the congressional Joint
Economic Committee tomorrow.
Also tomorrow the service sector
purchasing manager surveys will be
released. These are crucial guides to
the health of developed economies.
But while everyone’s attention is
fixed on the euro/dollar exchange rate,
it may be handy to watch the buck
versus the loonie.
The Bank of Canada is expected to
confirm today that it is standing pat on
policy, leaving main interest rates at
0.5 per cent.
If all the other events noted above
support the greenback there could
be further pressure on the
commodities sector, with oil facing
additional difficulties should Opec not
provide supportive noises at its
meeting this week.
These monetary policy and
commodity headwinds could see the
Canadian dollar break out to hit fresh
11-year lows.
jamie.chisholm@ft.com
Canadian dollar
Against the US dollar (C$ per US$)
1.0
1.2
1.4
2013 14 15
Source: Thomson Reuters Datastream
S&P 500 holds gains as
Eurofirst and Xetra Dax
slip ahead of tomorrow’s
ECB announcement,
with oil under pressure
DAVE SHELLOCK
US stocks started the month on a posi-
tive note as participants largely
shrugged aside disappointing manufac-
turing data and instead focused on
expectations that the European Central
Bank would announce further eco-
nomic stimulus this week.
But European equities edged back as
the euro rallied and investors fretted
about corporate earnings in the region.
Oil prices came under further pressure
ahead of an Opec decision on Friday on
whether to cut output.
By midday in New York the S&P 500
equity index was up 0.6 per cent at
2,093, not far off an early high of 2,098.8
and less than 2 per cent below the record
peak of 2,134.72 it reached in March.
But the FTSE Eurofirst 300 slipped
0.4 per cent from Monday’s three-
month closing high, and the Xetra Dax
in Frankfurt fell 1.1 per cent as export-
ers were hurt by a 0.5 per cent rally for
the euro against the dollar to $1.0612.
The single currency has retreated
steadily from levels close to $1.15 in
mid-October amid indications from
ECB officials that further steps would
be taken to bolster growth and inflation
in the eurozone.
But better than expected data on
manufacturing and employment
sparked talk in some quarters that the
market might have got ahead of itself in
its expectations of what the ECB might
announce — although most analysts still
expect the bank to take action.
“Overall today’s data brought some
further encouraging signs for the euro-
zone, but the recovery in the labour
The Great Divergence: FT.com/video
John Authers previews this week’s monetary policy action,
with the Fed and ECB expected to take differing paths
market and the wider economy remains
too weak to generate inflationary pres-
sure,” said Jennifer McKeown at Capital
Economics.
“Accordingly, the ECB is very unlikely
to be deterred from announcing
stronger policy support on Thursday.”
Manufacturing data out of the US
proved far more disappointing —
although the focus for datawatchers
remained Friday’s November jobs
report, which many view as crucial to
the Federal Reserve’s decision on
whether on not to raise interest rates
this month.
The Institute for Supply Manage-
ment’s headline index of manufacturing
activity fell to 48.6 from 50.1 in October
— Joel Saget/AFP/Getty Images
— below expectations and the lowest
reading since June 2009.
The last time the ISM index was below
the 50 mark — which nominally divides
expansion from contraction — was in
November 2012.
Analysts noted that while the produc-
tion and new orders components had
dipped below 50, the employment sub-
index had risen from 47.6 to 51.3.
“The report is likely to make some
Fed voters wary about hiking rates later
this month, but on balance we still think
that is what the outcome will be,” said
James Knightley, economist at ING.
“The services sector dwarfs manufac-
turing and is performing well, while the
economy is creating jobs, wages are
2100
2080
2060
2040
2020
Nov 2015 Dec
starting to rise and core inflation pres- US equities Bulls took charge on Wall
sures are building.” Street as December got under way,
Analysts also noted a solid 1 per cent with disappointing US manufacturing
rise in US construction spending in data largely ignored ahead of Friday’s
October. crucial non-farm payrolls report
The futures market continued to
assign a 74 per cent probability to a Fed FTSE 100 index
rate rise in December. But US Treasury Change on day 0.62%
yields fell, with that on the more policy- 6400
sensitive two-year note down 3 basis
points at 0.9 per cent and the 10-year off 6300
6bp to 2.16 per cent. 6200
German government bond yields ini-
6100
tially rose in response to the better euro- Nov 2015 Dec
zone data, but later followed their US
counterparts lower. The 10-year Bund UK equities Gains for banking stocks
yield ended down 1bp at 0.47 per cent. helped the London market outperform
The weaker dollar had a relatively its continental European peers after
muted impact on metals prices. Gold the sector passed the Bank of
edged up just $1 to $1,065 an ounce after England’s ‘stress tests’
last week’s slide to a five-year low.
Copper did a little better, rising 1 per Eurofirst 300 index
cent in London to $4,632 a tonne,
Change on day 0.35%
although concerns remained about the 1550
outlook for Chinese growth, particularly
given persistently weak manufacturing 1500
figures out of the country.
“The data suggest that the Chinese
1450
economy needs more stimulus to coun-
Nov 2015 Dec
terweigh the structural drags as the
improvement is still only very tenta- European equities Shares in Linde fell
tive,” said Allan von Mehren, chief ana- 14.3 per cent after the industrial gases
lyst at Danske Bank. group cut its 2017 profit target,
The Shanghai Composite equity index prompting worries about the broader
rose 0.4 per cent. earnings outlook for the region
Brent oil sank to $44.03 a barrel
before pulling back to $44.54, still down
0.2 per cent on the day. Nikkei 225 index
Ole Hansen, head of commodity strat- (’000) Change on day 1.34%
20.0
egy at Saxo Bank, noted that bullish
bets by funds on Brent crude had risen 19.5
12 per cent during the week to Novem- 19.0
ber 24.
“The price rally was driven by reports 18.5
Nov 2015 Dec
that Saudi Arabia favours action to sup-
port the market,” Mr Hansen said. Japanese equities The Nikkei closed
Meanwhile the Australian dollar rose above 20,000 for the first time since
1.3 per cent versus its US namesake to August 20 as participants shrugged
US$0.7319 after the Reserve Bank of off weak Chinese manufacturing data
Australia left interest rates unchanged.

Eli Lilly “market perform” to “outperform” and

Wall Street
Eli Lilly and Merck rise
after drug pipeline
hopes lead to upgrades
Mamta Badkar
Pharmaceutical stocks received a shot
in the arm after analysts at Barclays
upgraded Eli Lilly and Merck, citing
optimism over their pipelines of drugs.
Eli Lilly was exiting its so-called
“Years YZ” period, in which it has faced
a series of big patent expiries, “with a
new commercial stage portfolio of
attractive diabetes, oncology, and
immunology assets”, said Geoff
Meacham, an analyst at Barclays.
He upgraded the shares from
“equalweight” to “overweight” and
boosted the price target from $75 to $95.
Eli Lilly shares, which have gained
24 per cent this year, rose more than
4 per cent to $85.59.
Merck shares climbed 2 per cent to
$54.07 after the drugmaker was also
upgraded from “equalweight” to
“overweight” and the price target on
raised their price target from $77 to $88. Trading Directory
Share price ($)
90 This year Yum, the owner of KFC,
85 Pizza Hut and Taco Bell, announced
80 plans to spin off its China division,
75 which accounted for about half its
70 revenue in 2014. Slowing economic
Jan 2015
Source: Thomson Reuters Datastream
Dec growth and food safety scares had hurt
efforts to turn round sales in the region.
Day's
With a reorganisation “on the
Indices Close change
horizon”, investor focus was expected to
shift from concerns on China to
S & P 500
DJ Industrials
2092.21
17822.38
11.80
102.46
optimism for Taco Bell, said Andrew
Nasdaq Comp 5132.04 23.37
Charles, an analyst at Cowen.
Russell 2000 1204.70 -8.35
“Outside of China, Yum’s highly
VIX 15.71 -0.42
franchised business model provides
stability that can more predictability
US 10 yr Treas Bd 2.16 -0.06
return more than 10 per cent annual
US 2 yr Treas Bd 0.84 -0.03
growth after three years of missing
targets,” he said.
the stock was lifted from $64 to $66. Cummins shares fell 7 per cent to
Concerns about competition for Merck’s $93.53 after analysts at Bank of America
arthritis drug Remicade, which cut the engine manufacturer from
accounted for 5.7 per cent of its 2014 “buy” to “underperform” and lowered
sales, and Januvia, part of its successful their price target from $115 to $90.
diabetes franchise, were overdone, said Shares in mining equipment maker
Mr Meacham. Joy Global fell 12 per cent to $13.45,
While the new drugs in its pipeline after BofA downgraded from “neutral”
were not blockbusters, “they add up and to “underperform” and cut the price
are nearly free at the current valuation”. target more than 52 per cent to $10.
The S&P 500 pharmaceuticals US stocks remained firm but had
industry index rose nearly 2 per cent. pared earlier gains after a closely
Pharma and biotechs sold-off this watched report showed that US
summer as high drug prices attracted manufacturing had contracted for the
political scrutiny. “We view it more as first time in three years.
election season rhetoric than a push At midday the S&P 500 had gained
toward near-term structural changes,” 0.6 per cent to 2,092.84, the Dow Jones
said Mr Meacham. Industrial Average was 0.6 per cent
Shares in Yum Brands climbed more higher at 17,822.21, and the Nasdaq
than 2 per cent to $74.26, after analysts Composite had climbed 0.5 per cent
at Cowen upgraded the stock from to 5,135.10.

The European Commission is a switch out of OneSavings Bank on

London
Drax powers ahead 12%
with lift from regulator
Bryce Elder
A short squeeze lifted Drax yesterday
after a rare piece of regulatory good
news. The power station owner jumped
12.4 per cent to 253.1p after Brussels
said a plan by rival RWE to switch its
Lynemouth plant from burning coal to
wood pellets could qualify for a UK
state subsidy because it should not
result in overcompensation or affect
pellet prices.
expected to decide next year whether
one of Drax’s three biomass boilers
qualifies for the same type of subsidy.
Approval on the same terms as RWE
would put a value on Drax of 290p per
share, said Goldman Sachs — though it
cautioned that its plant was about
50 per cent larger than RWE’s so could
still be seen to distort competition in the
pellet market.
Amid falling wholesale power prices
and regulatory uncertainties around its
switch to biomass, Drax shares have
slumped 58 per cent over the past 12
months, and have been bet against by
US hedge funds including Marshall
Wace and AQR Capital. The stock is the
sixth most-shorted large-cap, Markit
data show, with shares on loan this week
rising to a five-year high of 11.2 per cent.
Banks led the wider market higher on
benign stress test results. The FTSE 100
rose 0.6 per cent, up 39.56 points to
6,395.65, with Barclays ahead 4.6 per
cent to 233.5p and Royal Bank of
Scotland up 3.2 per cent to 312.2p.
Virgin Money gained 6.5 per cent to
379p, with Investec Securities advising
valuation grounds. OneSavings lost
1.5 per cent to 379p.
Among the miners, Anglo American
faded 0.6 per cent to 406.3p. For its
credit rating not to be cut to junk, Anglo
might need a rights issue to raise
between $3bn and $5bn, said UBS.
Babcock faded 1.4 per cent to £10.56
after a downgrade to “sell” from
Citigroup. Serco rose 5.2 per cent to
116.2p, with Jefferies pushing ahead of a
trading update from the service group
expected this month.
Sophos, a security software maker,
dropped 9 per cent to 258p after pre-
float investor Apax Partners sold a
13.3 per cent stake at 265p a share.
Shopping centre developer
Hammerson added 2.8 per cent to
627.5p after Goldman upgraded to
“buy” with a 770p target.
Pumpmaker Weir fell 3.7 per cent to
£11.57 after HSBC turned negative, after
data showed that orders for pressure
pumps had fallen below 2009 lows.
Premier Oil faded 2.5 per cent to
69.3p, with Credit Suisse starting
coverage with a 70p target.
24 ★ Wednesday 2 December 2015

INSIGHT Markets outlook 2016. Commodities

Henny
Sender
Oil and mining companies hope worst is over
Producers talk of robust Exploring new depths
demand, but banks say prices
China’s speculative have to stay lower for longer
Crude oil prices
$ per barrel
caravan has moved on FT REPORTERS
120

to corporate bonds After one of the worst years on record

for oil companies and miners, investors Brent 100
might be forgiven for asking if there are
still opportunities in commodities after

I
t is tempting to believe that investors in the Chinese the end of the “supercycle”.
markets might have learnt a few lessons from the The question for 2016 is whether 80
huge correction in the stock market this summer. gloom over the sector this year repre-
Some have but many more seemingly have not. sents the nadir before a recovery or
The stock market is up 17.7 per cent from its trough merely a shift to the “new normal”. In
in August. Responsible fund managers such as those at other words have prices bottomed or 60
China Asset Management recommend clients look at solid will they remain lower for longer?
blue-chips and companies that pay high dividends, rather Oil prices have averaged $55 a barrel
than the most speculative plays and high-flying growth in 2015, almost 50 per cent less than last 40
counters, giving rise to the hope that the equity market year, while copper, coal and iron ore
might be more stable in coming months. But earnings con- have all sunk to levels that have pulled WTI
tinue to deteriorate for a big part of “old China”. down shares in mining companies.
Third-quarter results of almost 1,400 A-share compa- Mining groups such as Glencore say 20
nies listed before 2009 show non-financial sector earnings metals such as copper and nickel have
plunging 37 per cent compared with the same period a year been unfairly dragged down by the col- 2014 2015
ago in the worst showing since 2010, Credit Suisse notes. lapse in the oil price and by speculators.
That suggests that if the sell-down was overdone, the sub- They maintain physical demand in Asia FT graphic Source: Thomson Reuters Datastream; Photo: Dreamstime
sequent recovery may also be overdone. is robust, while supplies are vulnerable
Meanwhile the speculative caravan has moved on to the to prices falling below production cost.
corporate bond market, as once again investors take com- On the other side stand banks such as opening taps to put pressure on higher Industrial metals assets such as gold and silver. “As the
fort from their belief that there is a financial equivalent of Goldman Sachs and a group of aggres- cost rivals is a year old and few expect Fed raises rates and the opportunity
the “iron rice bowl” for them from the government and sive China-based hedge funds that are the cartel to change course soon. Goldman has forecast copper will be cost of holding gold increases, we expect
regulators. Beijing has relaxed the rules on issuance in the betting prices have further to fall. As Inventories in developed economies trading close to $4,500 a tonne at the gold prices to drop below $1,000/oz,”
corporate bond market in a recent move many believe was China’s economy slows, billions of dol- have swollen close to 3bn barrels, says end of next year, having hit a six-year say analysts at Natixis.
meant to offset the funding squeeze in the stock market. At lars of investment in new energy and the International Energy Agency, and low of $4,481 last month. The slowdown Demand in China and India has
the same time, the debt market can help compensate for mining projects are coming to fruition, the market must absorb higher exports in China, which imports 45 per cent of remained robust. Many investors are
the reluctance of banks to lend to clients whose cash flows putting further pressure on prices. They from Iran once sanctions are lifted. the metal, is behind the bank’s view. waiting to see if China’s central bank will
have fallen with the slowdown in the economy. say prices will have to remain “lower for So far so bearish. But Saudi Arabia’s Trading volumes in Shanghai have been continue its purchases. “We expect gold
It follows, therefore, that longer” to balance the market. plan was always focused on the longer propelled above those of the London prices to finally bounce back in 2016,”
any froth in the debt capital Investors have become disillusioned term and 2016 may be the year it starts Metal Exchange in some contracts. But say HSBC analysts.
market has the government’s
Government with commodities after four years of to bear fruit. With prices averaging Glencore and other miners say their
blessing, investors believe. blessing did not lacklustre returns. At the end of August about half the level they did between sales into China are strong. Agriculture
What is in store
This is despite the fact that the commodity assets under management 2010-14, the US shale industry has cut Wheat has fallen 22 per cent in 2015,
official endorsement last
prevent the totalled $242bn, says Barclays, down
for financial
markets in the number of rigs drilling for Gold corn is down 8 per cent and soyabeans
spring of the surge in the stock stock surge from from $259bn at the start of the year. The 2016? This week, oil. International oil groups have Since hitting an all-time peak of $1,902 a are down 14 per cent. For next year
market, meant to facilitate a S&P GSCI total return index has fallen the FT looks at shelved $200bn in future investments. troy ounce in 2011, gold has fallen 45 per much focus will be on the impact of the
debt to equity swap for the
ending badly 26.3 per cent this year. prospects for the By later next year many analysts see cent towards $1,000. The biggest head- El Niño weather phenomenon, which
main asset
overly indebted, ended badly. the market tightening. While prices are wind facing precious metals is a possible could threaten crops. Cocoa, which
So as China looks set to embark on its own quantitative Oil classes
not expected to shoot back to $100 a interest rate rise from the US Federal bucked the trend to rally in 2015, looks
ft.com/markets-
easing, and the central bank moves to cut interest rates Finding an investor who is bullish on oil outlook2016 barrel, they may need to rise to a level Reserve before the end of this year, vulnerable to selling. The high price is
more aggressively, investors are being driven by the same is difficult. The Saudi-led Opec policy of that allows more investment. which tends to weigh on non-yielding expected to encourage larger crops.
quest for yield as their counterparts elsewhere in the world
of virtually zero rates. There were five interest rate cuts in
2015, of which three were after the stock market began
turning down in June. Trading room
In the past cash-strapped companies went offshore to
borrow because the rates were far more attractive. Today
yields in Hong Kong are about 10 per cent compared with
4 per cent onshore. Other hybrid instruments display the
ICE buoyed by initial
same pattern. The preferred shares of the domestic banks
returned 7 per cent six months ago; today the yield has
trading at Asian hub
come down to 4.5 per cent, says China Asset Management.
And as has been the case elsewhere, the use of leverage
is rising. Banks will let clients in Shanghai leverage the cap- PHILIP STAFFORD nity, but ICE has set the pace
ital they put into the market by up to four or five times, in setting up trading and
analysts say. Intercontinental Exchange’s clearing infrastructure.
Bond issuance has surged. Companies raised almost Asian hub has traded more The move signals a depar-
Rmb900bn of debt in the third quarter — 56 per cent up on than 50,000 contracts in the ture for ICE, which has
the same period a year ago, according to the CLSA arm of first two weeks of operation tended to build market share
Citic Securities. Property developers, whose cash flow has as it taps fast-emerging com- in futures and credit clearing
dried up, have been among the most active in taking modities markets. in part by buying other mar-
advantage of favourable sentiment. Between mid-July and ICE Futures Singapore, ket infrastructure providers
mid-October, 48 developers raised money in this market, based in the city state, had such as Liffe and the Interna-
Credit Suisse calculates. Much of that will go to refinance traded a total of 54,862 con- tional Petroleum Exchange.
existing debt. Yet their yield has been lower than that of tracts by the end of trade on “We’re encouraged by the
some quasi-government agencies. Monday, according to data. progress we’ve made in Sin-
There are positive aspects to these developments. As Business has been concen- gapore,” said Lucas Schmed-
yields come down, the financial burden on numerous trated in mini-Brent futures des, president of ICE Futures
overly indebted companies will become lighter, helping contracts — a 10th the size of Singapore. “It’s our mini-size
their cash flows and earnings. Companies that might have ICE’s widely traded Brent Brent and gas oil contracts
gone bust, especially in the property market, will gain a contract. There has also been where we are seeing the most
reprieve for the time being. JPMorgan recently advised its trading in mini-gas oil, kilo in terms of active quoting
clients that valuations were ahead of fundamentals for gold and offshore mini- and trading volume.
these high-yield issuers and suggested they begin taking renminbi futures. “It’s relatively unique for
profits. Total return on Chinese developers’ junk debt has Open interest, an impor- us but we’re starting a regu-
risen 10 per cent this year. tant measure of the liquidity lated market and clearing
It is not clear whether this will end as badly for the less in a futures market, stands at house from zero to better
thoughtful investors as it did for those in the stock market just 3,252 contracts. In com- serve customers.”
this past summer. “Everyone believes in the ‘greater fool’ parison NFX, a futures venue After buying the Singapore
theory,” says the head of one big asset manager in Beijing. struggling to gain traction in Mercantile Exchange in 2013
“Everyone thinks they will be the last one out, just before the US, has traded nearly for $150m, the US group kept
midnight.” Then again, that belief is hardly unique to Chi- 730,000 Brent futures con- the licence but relaunched
nese investors. tracts this year with open the exchange and clearing
interest of 9,193 contracts. houses with new contracts.
henny.sender@ft.com “In the grand scheme of The business makes ICE
things it’s peanuts but for the the most significant competi-
first two weeks it’s pretty tor to SGX, the local incum-
good,” said Frederic Ponzo, bent derivatives market,
chief executive of Grey- which traded more than 11m
Spark, a capital markets con- derivatives contracts in
More comment and data on ft.com sultancy in London. October. Loh Boon Chye, the
“There’s still a long way to new chief executive of SGX,
go till break-even. When you is expected to lay out his
Y Fast FT Our global economies, headed branch out, what matters is strategy for the future of the
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