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Financial Times Europe – 14 December 2017

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WORLD BUSINESS NEWSPAPER
THURSDAY 14 DECEMBER 2017
EUROPE
Measuring Macron
Shadowing banks
Race for talent
Germany?s cautious view of French
reform plans ? ROULA KHALAF, PAGE 8
How bitcoin and cash rival official
payment systems ? JOHN GAPPER, PAGE 9
The global hunt for the most skilled
workers ? SPECIAL REPORT
Fed raises rates
and signals
three more
moves for 2018
Senate stand-off Democrats try to stall
Republican tax bill after Alabama win
The Federal Reserve raised short term
interest rates for a third time this year
and predicted more increases to follow
in the new year as Janet Yellen prepares
to hand over the chair amid robust hiring and surging financial markets.
The US central bank?s Federal Open
Market Committee increased the target
range for the federal funds rate by a
quarter point to 1.25-1.5 per cent. Policymakers? median forecast was for
another three quarter-point increases in
2018 and two in 2019, even as they
acknowledged inflation is continuing to
undershoot their target.
Two policymakers ? Charles Evans of
Chicago and Neel Kashkari of Minneapolis ? dissented from the decision to
tighten policy, having both previously
flagged up concerns about sluggish
inflation.
With the US economy at or even
beyond full employment, asset prices at
lofty valuations and global growth
strengthening, the majority of Fed policymakers are preparing for a string of
further rate increases in the coming
years in spite of surprisingly soft inflation readings.
Given the sturdy economic backdrop,
traders were primed for a rate increase
at the end of yesterday?s Fed meeting, as
well as the continuation of the Fed?s
process of unwinding its quantitative
easing programme.
?The Committee continues to expect
that, with gradual adjustments in the
stance of monetary policy, economic
i Softer Tillerson tone in Pyongyang offer
The US secretary of state has offered direct talks to
North Korea ?without preconditions? in an overture
that appears to jar with the more confrontational
stance taken by the White House.? PAGE 2
i Italian premier in EU integration push
Paolo Gentiloni, who took over as prime minister a
year ago, has told the Financial Times that the
momentum for integration is in danger of stalling
again.? PAGE 5; BIG READ, PAGE 7; NOTEBOOK, PAGE 8
i Froome investigated over drug test failure
A drugs test failure by Tour de
France champion Chris
Froome has put new pressure
on Sky, the UK team that has
faced criticism over its use of
legal drugs.? PAGE 3
activity will expand at a moderate pace
and labour market conditions will
remain strong,? the Fed said in a statement accompanying its rate decision.
Earlier yesterday Senate and House
Republicans reached a tentative agreement over tax legislation that could add
fuel to a recovery that is already seeing
annualised growth exceeding 3 per cent
and the lowest unemployment since the
George W Bush era.
Fed forecasts suggested the midpoint
of the Fed?s target range for interest
rates is expected to reach 2.1 per cent
next year and 2.7 per cent in 2019,
unchanged from previous projections. It
is now tipped to reach 3.1 per cent in
2020, slightly above the longer-run estimate of 2.8 per cent. The central bank
upgraded its jobs market assessment,
saying its policy is ?supporting strong
labour market conditions?, as it
described growth as ?solid?.
Inflation is continuing to run below
2 per cent but it should stabilise around
the central bank?s target in the medium
term, the Fed predicted.
The Fed is in the midst of a series of
changes at the top of the organisation
that will create added uncertainty over
the path of policy in the coming years.
Ms Yellen is due to step down as chair to
be replaced by Jay Powell, one of the current governors, in early 2018.
Randal Quarles has recently come on
board as the Fed?s vice-chairman for
financial supervision, and Mr Trump is
nominating Marvin Goodfriend to be
another one of the governors.
i French brain drain goes into reverse
Concerns about the Trump government and Brexit,
and optimism about president Emmanuel Macron,
have persuaded scientists, entrepreneurs, engineers
and financiers to return.? INNOVATION SERIES, PAGE 3
i Broker set to allow bets against bitcoin
Interactive Brokers has said it will allow customers
to take short positions on the cryptocurrency, a
move that could change the nascent market?s
dynamics.? PAGE 18; JOHN GAPPER, PAGE 9; LEX, PAGE 10
i Zuma ordered to probe state looting
A South African court has ordered the president to
appoint a judicial inquiry into alleged looting of the
state within 30 days, ratcheting up tensions ahead
of a vote to choose his successor.? PAGE 3
Datawatch
Black push
J. Scott Applewhite/AP
Charles Schumer, Democratic
leader in the Senate, calls for
Republicans to put off a final
vote on their tax cut plan until
Democrat Doug Jones, who
pulled off Tuesday?s upset victory in Alabama, takes his seat.
Republicans struck a deal
yesterday that bridges differences between bills approved in
the Senate and House of Repre-
Global Overview page 21
sentatives and want the new
version passed before Christmas. Mr Jones?s special election
win gives the Republicans a
51-49 Senate majority, making
final approval harder if the vote
is held after Mr Jones is sworn
in. But Alabama law means it is
unlikely he will take his seat
until early 2018.
Mr Schumer pointed to simi-
lar demands from Republican
counterpart Mitch McConnell
seven years ago, when Democrats lost a special poll in Massachusetts. ?Pausing on this tax
bill and going back to the drawing board is the right thing for
Republicans to do,? he said.
Dodging a bullet page 2
Edward Luce page 9
See Datawatch
Banks defy gloomy Brexit forecasts for
London with plans to shift just 6% of jobs
LAURA NOONAN ? LONDON
Arrest dents fortune of the
?Warren Buffett of Arabia?
Analysis i PAGE 4
Austria
Bahrain
Belgium
Bulgaria
Croatia
Cyprus
Czech Rep
Denmark
Egypt
Finland
France
Germany
Gibraltar
Greece
Hungary
India
Italy
Latvia
Lebanon
Lithuania
Luxembourg
?3.70
Din1.8
?3.70
Lev7.50
Kn29
?3.50
Kc105
DKr35
E�
?4.20
?3.70
?3.70
�70
?3.50
Ft1090
Rup195
?3.50
?6.99
LBP7500
?4.30
?3.70
Macedonia
Malta
Morocco
Netherlands
Norway
Oman
Pakistan
Poland
Portugal
Qatar
Romania
Russia
Serbia
Slovak Rep
Slovenia
Spain
Sweden
Switzerland
Tunisia
Turkey
UAE
Den220
?3.50
Dh45
?3.70
NKr35
OR1.60
Rupee 280
Zl 20
?3.50
QR15
Ron17
?5.00
NewD420
?3.60
?3.50
?3.50
SKr39
SFr6.00
Din7.50
TL11
Dh16.00
Big international banks are set to move
fewer than 4,600 jobs from London in
preparation for Brexit, just 6 per cent
of their total workforce in the City,
according to Financial Times research.
The FT analysis contrasts with consultants? claims that tens of thousands of
jobs could move from London to Europe
after Brexit. An EY study this week
said 10,500 could leave on ?day one?.
The FT estimates are based on statements by 15 of the UK?s biggest institutions, interviews with more than a
dozen senior bank executives about
Brexit plans and industry benchmarks.
At Deutsche Bank, where Sylvie
Matherat, head of regulation, publicly
said up to 4,000 jobs could move, just
350 jobs may leave by April 2019, the
estimates suggest, equivalent to 5 per
cent of Deutsche?s London headcount.
Some bankers say the lower estimates
emerged as they thought through how
many operations would need to move to
the EU if the UK loses access to the single
market.
?Every city wants thousands of people, but what are they going to do?? said
a senior executive at a large US institution. He said that the thousands of people in his London office ?cover clients?
who will mostly be remaining in the UK.
At JPMorgan, where chief executive
Jamie Dimon warned before the Brexit
vote of up to 4,000 London job losses,
the number leaving before April 2019 is
set to be closer to 700.
The UK government said that last
week?s divorce deal with the EU is proof
that negotiations are progressing. But
Sally Dewar, international head of regulatory affairs at JPMorgan, said her
� THE FINANCIAL TIMES LTD 2017
No: 39,655 ??
Printed in London, Liverpool, Glasgow, Dublin,
Frankfurt, Milan, Madrid, New York, Chicago, San
Francisco, Washington DC, Orlando, Tokyo, Hong
Kong, Singapore, Seoul, Dubai, Doha
STOCK MARKETS
CURRENCIES
Dec 13
S&P 500
Nasdaq Composite
2671.40
prev %chg
2664.11
Fresh flight path for Tui page 11
City exodus page 13
Euro-sterling parity recedes page 20
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chg
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102.62
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29222.10
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506.31
506.23
1242.65
1240.90
MSCI ACWI $
iApps 1627
bank?s planning ?hasn?t changed to
reflect anything that would look like a
better [Brexit] outcome?.
Goldman Sachs, which has taken a
new office in Frankfurt that could
accommodate 1,000 people, expects to
move fewer than 500 from London.
HSBC still plans to move ?up to 1,000
people?, although its chief financial
officer has said the figure could fall.
Some bankers say Brexit?s lasting
impact could still be dramatic. ?The
story has always been three to five years
out, not what does it do to the City the
morning after Brexit,? said Rob Rooney,
chief executive of Morgan Stanley International. ?If people judge it by the numbers that move [immediately] afterwards, they will miss the point.?
World Markets
Subscribe In print and online
www.ft.com/subscribetoday
email: fte.subs@ft.com
Tel: +44 20 7775 6000
Fax: +44 20 7873 3428
i Murdochs to hold less than 5% of Disney
People briefed on the talks have said that Rupert
Murdoch and his family will hold a Walt Disney
stake of under 5 per cent after the $60bn sale of 21st
Century Fox assets.? PAGE 13; SCRIPT REWRITE, PAGE 12
3 Inflation still undershooting target
3 Decision as Yellen set to bow out
SAM FLEMING ? WASHINGTON
Briefing
0.01 Gold $
0.14 Prices are latest for edition
Data provided by Morningstar
Exit polls (%)
Jones
Moore
Other
0 25 50 75 100
White men
White women
Black men
Black women
Source: Edison Research for
the National Election Pool
Democrat Doug
Jones reaped
the benefits of
near-unanimous
support from
black voters
and historically
substantial
support from
white voters in
the special
election for the
US Senate in
Alabama
?
2
FINANCIAL TIMES
Thursday 14 December 2017
INTERNATIONAL
Capitol Hill
Nuclear threat
Trump boost as deal struck on tax reforms
Tillerson
offers North
Korea direct
talks without
preconditions
Republicans bridge bills
divide as Democrats urge
delay to legislation vote
DEMETRI SEVASTOPULO, SAM FLEMING,
COURTNEY WEAVER AND BARNEY
JOPSON ? WASHINGTON
Republicans reached agreement on
their tax reform legislation yesterday as
Democrats responded to their stunning
Senate victory in Alabama by calling on
Donald Trump?s party to postpone a
vote on the legislation.
Republicans in the Senate and the
House of Representatives bridged the
differences in their respective tax bills,
settling on a reduction of the corporate
tax rate to 21 per cent from 35 per cent.
Orrin Hatch, the Republican head of
the Senate finance committee, said the
party had secured enough votes to pass
the legislation ? a result that would
hand Mr Trump his first big legislative
victory as president.
The Republicans are hoping to vote on
the legislation next week. But Chuck
Schumer, the Senate?s top Democrat,
called on Mitch McConnell, the Republican Senate majority leader, to postpone
the vote until Doug Jones, the Democrat
who won the Alabama race, takes up his
seat, which is unlikely before January.
?It would be wrong for Senate Republicans to jam through this tax bill without giving the newly elected senator
from Alabama the opportunity to cast
his vote,? Mr Schumer said. ?Our hope is
that Mitch McConnell will hear what the
voters in the suburbs of Alabama said:
?Help us!??
Three Republican sources said the
party had reached a deal in principle. In
addition to the lower corporate tax rate
? which Mr Trump originally wanted to
be 15 per cent before that was judged
unrealistic ? the bill would cut the top
income tax rate from 39.6 per cent to 37
per cent, which will increase criticism
that the legislation caters more to the
wealthy than to the middle class.
One Republican aide cautioned that
negotiators must still draft the bill and
work with the joint committee on taxation to score the legislation before
releasing a final text later this week. But
the momentum significantly improved
Republicans? chances of pushing
through the biggest change to the US tax
code since President Ronald Reagan
enacted major tax reform in 1986.
Mr Trump told reporters he was ?very
excited? by the tax bill and would sign
the legislation even if the corporate tax
rate was 21 per cent, a higher figure than
his original demand for 15 per cent.
?This is one of the biggest pieces of legislation ever signed by this country,?
he said.
In trying to convince Republicans to
delay the vote, Democrats said they had
done something similar when Scott
Brown, a Republican, won a special
Massachusetts Senate election following
the death of Ted Kennedy. Harry Reid,
then Democratic majority leader, post-
poned the vote to allow Mr Brown to
take up his seat. However, there was no
sense Mr McConnell would accede to the
request, since the Republicans will have
a razor-thin majority of only 51-49 seats
once Mr Jones joins the chamber.
An Alabama state election official
said the result was likely to be certified
between December 28 and January 3.
That suggests Mr Jones will almost certainly be sworn in next year.
The biggest winners in the deal are
corporations that will receive a big cut in
their headline tax rate, but the gains for
some multinationals will be trimmed by
the impact of a new international tax
regime. For individual taxpayers, analysts said long-term gains would be
skewed towards the richest.
Alabama. Senate election
Republicans feel they have dodged a bullet
Many in party hail blow for
Bannon, while Democrats hope
win will boost midterm efforts
DEMETRI SEVASTOPULO AND
COURTNEY WEAVER ? WASHINGTON
Democrats were elated yesterday after
their stunning Senate victory in Alabama, their first win in the deeplyconservative state since 1992. But many
Republicans found a silver lining in the
defeat of their party?s candidate, Roy
Moore: Steve Bannon, the former
Trump campaign manager who is waging war against the party establishment,
suffered a humiliating loss.
?Suck it, Bannon,? was how Meghan
McCain, the daughter of Arizona senator John McCain, tweeted about the race
in which Mr Bannon had campaigned
for Mr Moore, a former Alabama chief
justice who was unable to overcome the
reports ? which he denied ? that he
preyed on teenage girls when he was in
his thirties.
While the loss was a double whammy
for Donald Trump ? who endorsed
Luther Strange in the Republican primary and then backed Mr Moore
against Doug Jones over the wishes of his
party ? and Republicans worried about
their thin Senate majority shrinking
further to 51-49, many in the party
decided they had dodged a bullet.
?Nothing more exhilarating than to
be shot at and missed,? said John Feehery, a former top Republican Congressional aide who said that a victory for Mr
Moore ?would have complicated things
for the GOP?.
Democrats hope that their victory ?
which follows a string of good results in
the recent Virginia gubernatorial and
state elections ? signal that discontent
with Mr Trump will translate into a
wave of support for the party that will
boost their efforts to retake the House
and Senate in the 2018 midterms.
Republicans were relieved that they
will not face allegations that one of their
own is an alleged paedophile. They also
took solace in Mr Bannon falling at the
first hurdle in his campaign to send antiestablishment conservatives to the Senate to oust Mitch McConnell as the
Republican majority leader.
But the Alabama outcome also
reinforced the deep schism in
the party, which is caught
between traditional Republi-
Democrat Doug
Jones, centre,
addresses an
election night
party in
Birmingham,
Alabama. He
beat Republican
rival Roy Moore
who was backed
by Steve
Bannon, below
canism and the anti-establishment populism that fuelled the Tea Party movement and then ? with the added
weapon of economic nationalism ? propelled Mr Trump to the White House.
?There is a definite sense of relief, but
no one wants to injure themselves patting themselves on the back,? said Doug
Heye, a former top Republican aide.
?While we might have dodged a bullet
last night, the GOP still has malaria.
We?re still bitterly divided and some of
that has intensified in the last 18 hours.?
Many party members say any other
Republican would have beaten Mr
Jones, given the deeply conservative
nature of Alabama. But Tom Perez, head
of the Democratic National Committee,
insisted that the result was ?not an outlier? but a trend. ?When I look at the
2018 landscape, I am heartened.?
To win back the House, Democrats need to win back 24
seats in the midterms. Stan
Greenberg, a Democratic
strategist, said the Alabama victory was an
Nicole Craine/Bloomberg
WORLD BUSINESS NEWSPAPER
Dear Don...
May?s first stab at the break-up
letter ? ROBERT SHRIMSLEY, PAGE 12
HMRC warns
customs risks
being swamped
by Brexit surge
Lloyd?s of Brussels Insurance market
to tap new talent pool with EU base
UK �80; Channel Islands �80; Republic of Ireland ?3.80
A computer system acquired to collect
duties and clear imports into the UK
may not be able to handle the huge
surge in workload expected once Britain
leaves the EU, customs authorities have
admitted to MPs.
HM Revenue & Customs told a parliamentary inquiry that the new system
needed urgent action to be ready by
March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time ?has collapsed?.
Setting up a digital customs system
has been at the heart of Whitehall?s
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
About 53 per cent of British imports
come from the EU, and do not require
checks because they arrive through the
single market and customs union. But
Theresa May announced in January that
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
The revelations about the system,
called Customs Declaration Service, are
likely to throw a sharper spotlight on
whether Whitehall can implement a
host of regulatory regimes ? in areas
ranging from customs and immigration
to agriculture and fisheries ? by the
time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
adjust its negotiation position with the
EU, a Whitehall official said. ?If running
our own customs system is proving
much harder than we anticipated, that
ought to have an impact on how we
press for certain options in Brussels.?
In a letter to Andrew Tyrie, chairman
of the Commons treasury select committee, HMRC said the timetable for
delivering CDS was ?challenging but
achievable?. But, it added, CDS was ?a
complex programme? that needed to be
linked to dozens of other computer systems to work properly. In November,
HMRC assigned a ?green traffic light? to
CDS, indicating it would be delivered on
time. But last month, it wrote to the
committee saying the programme had
been relegated to ?amber/red,? which
means there are ?major risks or issues
apparent in a number ofkey areas?.
HMRC said last night: ?[CDS] is on
track to be delivered by January 2019,
and it will be able to support frictionless
international trade once the UK leaves
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for successful delivery.?
HMRC?s letters to the select committee, which will be published today, provide no explanation for the rating
change, but some MPs believe it was
caused by Mrs May?s unexpected decision to leave the EU customs union.
THE END
OF THE
ROAD
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
A report on how the health service can survive
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while
some surgical procedures will be scrapped.? PAGE 4
i Emerging nations in record debt sales
Credit Suisse
engulfed in
fresh tax probe
i London tower plans break records
A survey has revealed that a
record 455 tall buildings are
planned or under construction
in London. Work began on
almost one tower a week
during 2016.? PAGE 4
Shutdown risk as border
wall bid goes over the top
Congressional Republicans seeking to
avert a US government shutdown after
April 28 have resisted Donald Trump?s
attempt to tack funds to pay for a wall
on the US-Mexico border on to
stopgap spending plans. They fear
that his planned $33bn increase in
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
to accept the proposals.
US budget Q&A and
Trump attack over health bill i PAGE 8
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
staff?s communication.
Several large investment banks have
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
encryption system that cannot be
accessed without permission from the
user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
For the latest news go to
www.ft.com
� THE FINANCIAL TIMES LTD 2017
No: 39,435 ?
Printed in London, Liverpool, Glasgow, Dublin,
Frankfurt, Brussels, Milan, Madrid, New York,
Chicago, San Francisco, Washington DC, Orlando,
Tokyo, Hong Kong, Singapore, Seoul, Dubai
Dow Jones Ind
FTSEurofirst 300
Euro Stoxx 50
FTSE 100
FTSE All-Share
CAC 40
3 UK, France and Netherlands swoop
3 Blow for bid to clean up Swiss image
i HSBC woos transgender customers
AFP
Lloyd?s of London chose Brussels over ?five or six? other
cities in its decision to set up an
EU base to help deal with the
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance market, said he expected other
insurers to follow. Most of the
business written in Brussels
will be reinsured back to the
syndicates at its City of London
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
London?s specialist insurance
groups after the UK leaves the
Berrys after discussions with regulators.
Christopher Niehaus, a former Jefferies banker, passed confidential client
information to a ?personal acquaintance and a friend? using WhatsApp,
according to the FCA. The regulator said
Mr Niehaus had turned over his device
to his employer voluntarily.
The FCA said Mr Niehaus had shared
confidential information on the messaging system ?on a number of occasions?
last year to ?impress? people.
Several banks have banned the use of
new media from work-issued devices,
but the situation has become trickier as
banks move towards a ?bring your own
device? policy. Goldman Sachs has
clamped down on its staff?s phone bills
as iPhone-loving staff spurn their workissued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
EU, with Dublin and Luxembourg thought to be more likely
homes for the industry. But
Mr Nelson said the city won on
its transport links, talent pool
and ?extremely good regulatory reputation?.
Lex page 14
Insurers set to follow page 18
media at work, but banks are unable to
ban people from installing apps on their
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set ?a precedent
in that it shows the FCA sees these messaging apps as the same as everything
else?.
Information shared by Mr Niehaus
included the identity and details of a
client and information about a rival of
Jefferies. In one instance the banker
boasted how he might be able to pay off
his mortgage if a deal was successful.
Mr Niehaus was suspended from Jefferies and resigned before the completion of a disciplinary process.
Jefferies declined to comment while
Facebook did not respond to a request
for comment.
Additional reporting by Chloe Cornish
Lombard page 20
prev %chg
Mar 30
2361.13 0.20 $ per ?
5897.55 0.09 $ per �
20703.38 20659.32 0.21 � per ?
1500.72 1493.75 0.47 � per $
INTEREST RATES
prev
Mar 30
2365.93
1.074
1.075 ? per $
0.932
5902.74
1.249
1.241 � per $
0.801
0.859
0.866 ? per �
3481.67
7369.52
4011.01
5089.64
it followed ?a strategy offull client tax
The bank has unveiled a range of gender-neutral
DUNCAN
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but was still trying to
titles
such asROBINSON
?Mx?, in addition
to Mr, Mrs, Misscompliance?
or
Ms, in a move to embrace diversity and cater togather
the information about the probes.
Credit
Suisse hascustomers.
been targeted
by
HM Revenue & Customs said it had
needs
of transgender
? PAGE 20
sweeping tax investigations in the UK, launched a criminal investigation into
France and the Netherlands, setting suspected tax evasion and money launback Switzerland?s attempts to clean up dering by ?a global financial institution
Datawatch
and certain ofits employees?. The UK
its image as a tax haven.
The Swiss bank said yesterday it was tax authority added: ?The international
Terror
attacks inwith
western
Europe after
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authorities
itsattacks
Recent
? of this investigation sends a clear
that there is no hiding place for
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notably the message
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?concerning client tax matters?. Anders BreivikDutch
Norway,
the
Dutch authorities said their counter- action, said they seized jewellery, paintattacks in Paris
ings and gold ingots as part of their
parts in Germany wereBrussels
also involved,
and Nice, and
the while French officials said their
probe;
while Australia?s revenue department
Norway
Brussels suicide
investigation had revealed ?several
said it was investigating
a Swiss
Paris
Nice bank.
bombings ? have
thousand? bank accounts opened in
The inquiries threaten to undermine
bucked the trend
efforts by the country?s banking sector
Switzerland and not declared to French
of generally low
tax authorities.
to overhaul business models and ensure
fatalities from
The Swiss attorney-general?s office
customers meet international tax
Sources: Jane?s Terrorism and Insurgency Centre terror incidents in
said it was ?astonished at the way this
requirements following a US-led clampwestern Europe
down on evaders, which resulted in operation has been organised with the
deliberate exclusion of Switzerland?. It
billions of dollars in fines.
The probes risk sparking an interna- demanded a written explanation from
tional dispute after the Swiss attorney- Dutch authorities.
In 2014, Credit Suisse pleaded guilty
general?s office expressed ?astonishment? that it had been left out of the in the US to an ?extensive and wideactions co-ordinated by Eurojust, the ranging conspiracy? to help clients
evade tax. It agreed to fines of $2.6bn.
EU?s judicial liaison body.
Additional reporting by Laura Noonan in
Credit Suisse, whose shares fell 1.2 per
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
Houlder in London, and Michael Stothard
subject ofinvestigations in the Netherlands, France and the UK. The bank said in Paris
RALPH ATKINS ? ZURICH
1.164
prev
0.930 US Gov 10 yr
0.806 UK Gov 10 yr
1.155 Ger Gov 10 yr
111.295 111.035 � per ? 119.476 119.363 Jpn Gov 10 yr
3475.27 0.18 � per � 139.035 137.822 � index 76.705 76.951 US Gov 30 yr
7373.72 -0.06 ? index 89.046 89.372 $ index 104.636 103.930 Ger Gov 2 yr
4011.80 -0.02 SFr per ? 1.069 1.072 SFr per � 1.244 1.238
5069.04 0.41 COMMODITIES
Fed Funds Eff
Xetra Dax
12256.43 12203.00 0.44
Mar 30
Nikkei
19063.22 19217.48 -0.80 Oil WTI $
24301.09 24392.05 -0.37 Oil Brent $
297.99
297.73 0.09 Gold $
52.98
52.54
1248.80
1251.10
Hang Seng
FTSE All World $
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In a stormy three-hour meeting, investors accused
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The US secretary of state has failed to reconcile
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Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.? PAGE 9
City watchdog sends a clear message as
A boastful WhatsApp message has cost
a London investment banker his job
and a �,000 fine in the first case of
regulators cracking down on communications over Facebook?s popular
chat app.
Censors and sensitivity
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Developing countries have sold record levels of
government debt in the first quarter of this year,
taking advantage of a surge in optimism toward
emerging markets as trade booms.? PAGE 15
banker loses job over WhatsApp boast
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3 Confidence in IT plans ?has collapsed?
3 Fivefold rise in declarations expected
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50.22
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2.99
0.01
102.58
-0.75
price
0.66
0.00
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%chg US 3m Bills
1.43 Euro Libor 3m
0.78
0.78
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-0.18 Prices are latest for edition
0.34
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0.00
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Living wage rise to pile
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The EU yesterday took a tough opening
stance in Brexit negotiations, rejecting
Britain?s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
European Council president Donald
Tusk?s first draft of the guidelines,
which are an important milestone on
the road to Brexit, sought to damp Britain?s expectations by setting out a
?phased approach? to the divorce process that prioritises progress on withdrawal terms.
The decision to add the clause giving
Spain the right to veto any EU-UK trade
deals covering Gibraltar could make the
300-year territorial dispute between
Madrid and London an obstacle to
ambitious trade and airline access deals.
Gibraltar yesterday hit back at the
clause, saying the territory had ?shamefully been singled out for unfavourable
treatment by the council at the behest of
Spain?. Madrid defended the draft
clause, pointing out that it only reflected
?the traditional Spanish position?.
Senior EU diplomats noted that
Mr Tusk?s text left room for negotiators
to work with in coming months. Prime
minister Theresa May?s allies insisted
that the EU negotiating stance was
largely ?constructive?, with one saying it
was ?within the parameters of what we
were expecting, perhaps more on the
upside?.
British officials admitted that the EU?s
insistence on a continuing role for the
European Court of Justice in any transition deal could be problematic.
Brussels sees little room for compro-
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require ?existing regulatory, budgetary,
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to begin only once ?sufficient progress?
has been made on Britain?s exit bill and
citizen rights, which Whitehall officials
believe means simultaneous talks are
possible if certain conditions are met.
Boris Johnson, the foreign secretary,
reassured European colleagues at a
Nato summit in Brussels that Mrs May
had not intended to ?threaten? the EU
when she linked security co-operation
after Brexit with a trade deal.
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prev %chg
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1503.03 1500.72 0.15 � per $
Mar 31
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3990.00
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3481.58 0.40 � per �
7369.52 -0.63 ? index
111.430 111.295 � per ?
139.338 139.035 � index
88.767 89.046 $ index
4011.01 -0.52 SFr per ? 1.071
5089.64 0.65 COMMODITIES
1.069 SFr per �
1.169
price
99.27
yield
chg
2.41
-0.01
1.22
0.02
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Mar 31
18909.26 19063.22 -0.81 Oil WTI $
24111.59 24301.09 -0.78 Oil Brent $
297.38
298.11 -0.24 Gold $
53.35
53.13
1244.85
1248.80
50.46
98.63
100.36
104.536 104.636 Ger Gov 2 yr
1.252 1.244
12312.87 12256.43 0.46
Nikkei
Hang Seng
100.35
119.180 119.476 Jpn Gov 10 yr
77.226 76.705 US Gov 30 yr
Xetra Dax
FTSE All World $
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0.801 UK Gov 10 yr
1.164 Ger Gov 10 yr
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Data provided by Morningstar
Doug Heye
Alabama, but might not hold for next
year?s midterms given the strong support Mr Trump still has from his base.
Yet in the wake of the Jones victory
and wins in state and local races last
month, some Democrats are cautiously
optimistic that Mr Trump?s low national
approval rating will translate into extra
seats for them, particularly in suburban
and affluent Republican districts.
?What happened in Alabama was as
much about Donald Trump as it was
about Roy Moore,? said Geoff Garin, a
Democratic pollster, who said it underscored the president?s weakness in his
ability to deliver voters even in places
where he ran strongly in 2018. While Mr
Trump won close to 63 per cent against
Hillary Clinton in Alabama, his
approval rating among those who voted
yesterday was only 48 per cent.
?Trump has aroused and mobilised
the Democratic base to participate in a
way that they don?t always in midterm
elections,? said Mr Garin.
See Editorial Comment
Edward Luce See Comment
?We?re ready to have the first meeting
without preconditions,? Mr Tillerson
said at the Atlantic Council, a Washington think-tank. ?Let?s just meet. We can
talk about the weather if you want,? he
said. ?We can talk about whether it?s
gonna be a square table or a round table
if that?s what you?re excited about. But
can we at least sit down and see each
other face to face??
The Trump administration has spent
months trying to convince North Korea
to drop its fast-advancing nuclear programme, combining the threat of military action and tougher economic sanctions with an openness to talks.
But in what appeared to be a significant concession, Mr Tillerson said that
the president was ?realistic? about the
government in Pyongyang refusing to
commit to give up its nuclear programme from the outset of any talks,
saying it was more important to establish a road map for discussions.
?It?s not realistic to say we?re only
going to talk if you come to the table
ready to give up your programme,? he
said. ?They have too much invested in
it. And the president is very realistic
about that as well.?
Mr Tillerson stressed that denuclearisation remained Washington?s
goal, adding that North Korea could not
be trusted not to sell its nuclear knowhow or weapons.
He also appeared to hedge his offer,
cautioning that ?if there was any condition at all to this?, Pyongyang should
refrain from nuclear or missile tests
during a ?period of quiet?.
Donald Trump said in October that
his secretary of state was ?wasting his
time trying to negotiate? with Kim Jong
Un, the North Korean dictator.
After Mr Tillerson?s opening to
Pyongyang, the White House stated that
the president?s views ?have not
changed?. The state department also
insisted the policy had not changed.
The Trump administration is also
ramping up pressure on China to go
beyond existing UN sanctions and cut
off oil exports to North Korea.
?The president would like to see
China cut the oil off,? Mr Tillerson said.
?The last time the North Koreans came
to the table, it was because China cut the
oil off. Three days later the North Koreans were at the table talking.?
In a separate speech, HR McMaster,
US national security adviser, said the US
wanted Beijing to take advantage of its
economic relations with Pyongyang to
increase pressure.
?We want . . . China to recognise that
the time is now to do more beyond existing UN Security Council resolutions,? Mr
McMaster said. ?The economic coercive
powerisconsiderable,especiallythearea
ofoilandrefinedfuelproducts.?
US officials say the sanctions are starting to squeeze North Korea. Mr Tillerson said fuel prices had spiked 90 per
cent, before settling at roughly 50 per
cent higher than before.
Move to agree global rules for ecommerce ends in stalemate
Subscribe to the FT today at FT.com/subscription
Trump vs the Valley
?There is a
definite
sense of
relief, but
no one
wants to
injure
themselves
patting
themselves
on the back?
US secretary of state Rex Tillerson
offered to open direct talks with North
Korea ?without preconditions? in a
new overture to Pyongyang that
appeared to jar with the more confrontational stance of the White House.
World Trade Organization
MAKE A SMART INVESTMENT
Tech titans need to minimise
political risk ? GILLIAN TETT, PAGE 13
?aberration?, but added that the factors
that led to the result were not. Chief
among them was the high turnout of
minority and millennial voters ? two
groups that can help Democrats in the
midterms. Mr Perez said the DNC spent
close to $1m in the race, all of which was
directed towards elevating millennial
and African-American turnout.
The DNC spent the $1m quietly,
declining to send high-profile figures
such as House minority leader Nancy
Pelosi or Senate minority leader Chuck
Schumer to the state, or frame the race
in national terms ? a strategy that could
help the party win in districts that might
vote for a centre-left candidate even if
they disagreed with the party?s leaders
who are viewed as very liberal.
?We operated below the radar screen,
because that was in the best interest of
the race,? said Mr Perez.
Democrats were helped by low-turnout among working-class whites in rural
areas, a group that came out in force for
Mr Trump last year. That trend is typical for a special election like the race in
DEMETRI SEVASTOPULO AND
KATRINA MANSON ? WASHINGTON
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Players of the online strategy game
Clash of Clans do not usually worry
about global trade negotiations. But
the game?s fans are at risk of becoming
collateral damage after the world?s
trade ministers ended their biennial
conclave in Buenos Aires yesterday in
stalemate.
India and other developing economies
at this week?s meetings blocked a series
of initiatives including the normally
routine renewal of a 20-year-old moratorium on levying duties on electronic
transmissions.
It means that World Trade Organization members will immediately have
the right to impose new tariffs on any
downloads of Clash of Clans from its
Finnish maker?s servers, or on streamed
music from Spotify and videos on Netflix that cross national borders.
Whether countries do so will be up to
them. But in a world where concerns
about digital protectionism are growing,
the move is a blow for advocates of economic liberalisation, and to technology
companies such as Amazon and Google,
whose business models increasingly
depend on data travelling the world
seamlessly.
The WTO ? facing an existential
assault from the Trump administration
? is struggling to find ways to deal with
issues such as ecommerce, which many
of its members believe it must do to
remain relevant in a changing global
economy.
A bid for broad agreement to begin
discussions on new global rules for
ecommerce ground to a halt in Buenos
Aires, leading 70 of the WTO?s 164 members, including the US and EU and
smaller economies such as Australia, to
declare that they would pursue their
own deal outside the WTO?s usual negotiating stream.
?It?s ridiculous that we don?t have global rules for ecommerce in 2017,? said
Kai Mykkanen, the trade minister of
Finland, which is home to Supercell, the
company behind Clash of Clans. ?It
would be quite problematic and quite
hard to make it work if Clash of Clans
had to pay duties in some countries and
not in other countries. It would mean
much more bureaucracy.?
The push for the WTO to launch
ecommerce negotiations ? which could
help define basic international standards for things such as electronic contracts and signatures and consumer
protections ? has drawn the attention
of international tech companies such as
Amazon and Google. Jack Ma, the
Alibaba founder, flew in for the WTO
meeting to press the case for new ecommerce rules.
Clash of Clans: end
of moratorium on
duties on such
games may cause
problems for its
maker Supercell
?We believe in globalisation and free
trade. We think this system works,? Mr
Ma told an event on the sidelines of the
meeting.
But this week?s meeting has also given
plenty of ammunition to those like the
US trade tsar Robert Lighthizer who
believe that the WTO system ? with
rules that require consensus from all
members to do anything ? does not
work and needs drastic reforms.
Besides ecommerce, WTO members
failed to agree on a bid to ban subsidies
for illegal fishing. They also failed to
agree on new discussions over easing
investment barriers and making trade
easier for micro businesses.
Optimists say that countries are finding ways to move forward in smaller
groups, trying to reach ?plurilateral?
agreements that many believe could
herald a nimbler WTO.
Liam Fox, the UK trade minister, who
has been staking much of Britain?s trading future outside the EU on playing a
leadership role in the WTO, said the
ecommerce discussions marked an
important development.
?Current rules are outdated and new
rules are long overdue,? he said. ?That?s
why I?ve been pushing for progress
here at the WTO ministerial conference
and why I?m delighted to announce
the UK?s full participation in these new
discussions.?
Besides the declaration on ecommerce, which included countries representing almost 80 per cent of such global
trade, separate groups of countries yesterday also said they would try to find
ways to facilitate international investment and make rules easier for micro
businesses.
?
Thursday 14 December 2017
3
FINANCIAL TIMES
INTERNATIONAL
Series. Europe?s innovation comeback
Tech pigeons
fly home
to Macron
Brexit and US rhetoric against
foreigners help France?s leader
to arrest nation?s brain drain
HARRIET AGNEW ? PARIS
For US scientist and inventor Professor
Newton Howard, the decision to base
his latest neuroscience project in Paris
was a ?no brainer?.
?In France you have this tremendous
talent pool and then you have the incentives offered by the French government,? says Prof Howard, chief scientist
at ni20, which is working on the next
generation of brain prosthetics.
In contrast, the US has a ?rhetoric
against foreigners? and the UK is ?surrounded by uncertainty? because it
voted to leave the EU, he says.
Prof Howard is typical of a growing
number of scientists, entrepreneurs,
engineers and financiers who are moving or returning to France, driven by
concern about the Trump government,
Brexit and optimism about Emmanuel
Macron, French president.
Collectively, they are a tentative sign
that a brain drain spanning several
years may have reached a turning point.
?It?s no longer a one-way trip out of
France,? says Reza Malekzadeh, general
partner at venture capital fund Partech
in Silicon Valley.
Under Socialist president Fran鏾is
Hollande, entrepreneurs who faced
punitive taxes and stiff regulation called
themselves Les Pigeons ? slang for
suckers. Many fled France for London
or Silicon Valley, drawn to a more
?can-do? mindset and large pool of
potential investors and customers.
Returning home seemed unthinkable.
But opinions of France are changing.
There have already been 1,000 applications for a special fast-track tech visa
introduced by Mr Macron, with ?several
hundred? more from scientists who
want to move to France, says Mounir
Mahjoubi, France?s minister for the digital economy. France is also for the first
time raising more venture capital than
the UK. In the first eight months of 2017,
it raised ?2.7bn, compared with ?2.3bn
in the UK and ?1.1bn in Germany,
according to Dealroom, a European venture capital database.
Tony Fadell, one of the fathers of the
iPod and founder of Nest Labs, moved to
France last year after about 25 years in
the US and is running a venture capital
firm. He says he wants ?to get fresh
inspiring ideas and great technologies
from places outside Silicon Valley?.
Other senior executives moving from
London to Paris include Pascal Cagni,
who ran Apple?s operations in Europe in
2000-12 and is now France?s business
ambassador, and Johannes Huth, who
runs private equity firm KKR in Europe.
Mr Huth says: ?I am fascinated with
what?s happening in France; I think Mr
Macron is a very positive influence.?
For some, the election of Mr Macron
was the catalyst they needed. ?The way
Macron created [his political movement] En Marche is very entrepreneurial,? says Michael Amar, an entrepreneur and investor, who decided the day
after the French election to leave Silicon
Valley for Aix-en-Provence, one of several cities that have become technology
hubs. ?He?s a role model for entrepreneurs.? As well as a ?10bn fund to foster
technology innovation and the launch
of the tech visa, Mr Macron has pushed
Talent pool:
clockwise from
main, Rand
Hindi;
Prof Newton
Howard, left,
with France?s
digital minister
Mounir
Mahjoubi; and
US data scientist
Jorie KosterHale ? Pascal Perich
On the rise
Venture capital fundraising (?bn)
12
Europe
UK
France
Germany
10
8
6
4
2
0
2012 13
14
15
16
Source: Dealroom
17
(H1)
South Africa
Court orders Zuma to appoint inquiry
JOSEPH COTTERILL ? JOHANNESBURG
A South African court ordered President Jacob Zuma to appoint a judicial
inquiry within 30 days into alleged
looting of the state, ratcheting up
tensions ahead of a vote in the
ruling African National Congress party
to choose his successor.
In a judgment yesterday, the high court
in Pretoria threw out objections by Mr
Zuma over holding the inquiry, recommended by South Africa?s public protector, or government ombudsman, following a report into his ties to the controversial Gupta family.
The report last year by Thuli Madonsela found evidence that the Guptas
used a friendship with Mr Zuma to control his ministerial appointments and
awards of state contracts, claims denied
by the family and Mr Zuma.
The court said that a bid by Mr Zuma
to name judges for the inquiry himself
was ?ill-advised and reckless? and constituted a conflict of interest given he
was implicated in alleged corruption.
The court has given the task of appointing judges to the chief justice, Mogoeng
Mogoeng, and ordered that the inquiry
complete its work within six months of
being launched.
By refusing to appoint an inquiry Mr
Zuma ?acted in flagrant disregard of the
constitutional duties of the public protector?, the court added. Calling the
public protector?s findings ?extremely
serious?, it said that ?the president had
The order follows
a report by Thuli
Madonsela into the
president?s ties to
the controversial
Gupta family
no justification to simply ignore the
impact of this corruption on the South
African public?. It ordered him to pay
the costs of the litigation personally.
The decision will raise the pressure on
Mr Zuma in his attempt to ensure that
his chosen successor wins at this weekend?s ANC conference. Mr Zuma is supporting his ex-wife, Nkosazana DlaminiZuma, against Cyril Ramaphosa, the
deputy president. Analysts say that the
contest remains too close to call.
Mr Ramaphosa has campaigned on a
promise to root out ?state capture? if he
becomes state president. Mr Zuma?s
second and last term as president ends
in 2019 but there is speculation the ANC
will sack him early next year if Mr Ramaphosa wins the leadership contest.
Ms Madonsela, who stepped down as
public protector this year, told media in
the courtroom that ?the court?s decision
that the president was reckless resonates with my own views?.
Mmusi Maimane, leader of the main
opposition Democratic Alliance, said
that ?the ANC has protected Zuma?, as
he ?tried any process to obfuscate the
matter? over the allegations of looting.
After an earlier legal setback for Mr
Zuma last week, when a court ruled that
he was too conflicted by another corruption case to appoint a new chief prosecutor, his allies have turned their fire on
the judiciary.
Collen Maine, the head of the ANC
youth league, said that ?no court will tell
us whom to elect in the ANC? and said to
judges that ?we rose against apartheid,
we will rise against you?.
David Pilling see Comment
Cycling
Team Sky challenges Froome drug test failure
MURAD AHMED ? LONDON
Chris Froome, the Tour de France
champion, is being investigated over a
failed drugs test, putting further pressure on Team Sky, the UK cycling team
that has faced criticism over the use of
legal drugs by its riders.
Britain?s most successful road cyclist
confirmed yesterday he was found to
have exceeded the allowed levels of
Salbutamol, an asthma drug, following a
test taken in September during the
Vuelta a Espa馻 race that he won.
Froome, who has long stated he has
suffered from asthma since childhood,
and Team Sky, the Manchester-based
road cycling team that he rides for, are
challenging the findings with Union
Cycliste Internationale (UCI), the world
governing body for cycling.
They argue the drug was taken on the
advice of doctors, the use of the medication was declared to authorities and was
taken within the permissible limits.
The UCI has confirmed it has
launched an investigation into the mat-
ter, after a joint investigation by the
Guardian and Le Monde newspapers
first reported on the failed test.
?It is well known that I have asthma
and I know exactly what the rules are,?
said Froome, who also won his fourth
Tour de France this year.
?I use an inhaler to manage my symptoms (always within the permissible
limits) and I know for sure that I will be
tested every day I wear the race leader?s
jersey. My asthma got worse at the
Vuelta so I followed the team doctor?s
advice to increase my Salbutamol dosage. As always, I took the greatest care to
ensure that I did not use more than the
permissible dose.?
Team Sky said: ?The notification of
the test finding does not mean that any
rule has been broken. The finding triggers requests from the UCI which are
aimed at establishing what caused the
elevated concentration of Salbutamol
and to ensure that no more than the permissible doses . . . were inhaled.?
It added that there can be ?unpredictable variations? in how Salbutamol is
absorbed and excreted, which can lead
to higher levels of it appearing in urine.
But the news comes as a further blow
to Team Sky, and its team principal
Dave Brailsford, which has faced severe
criticism to its approach of allowing riders to use drugs within the bounds of
regulations.
Last year, it emerged that Bradley
Wiggins, who won the Tour de France
riding for Team Sky in 2012, had
received a ?therapeutic use exemption?
(TUE) ? which allows athletes to take
banned substances for medical reasons
with the approval of sporting authorities ? for the steroid Triamcinolone to
treat asthma and pollen allergies.
Wiggins, who denies any wrongdoing,
had not previously revealed he was suffering from ailments. Last month the
UK sporting authorities said Team Sky
would not face charges.
If the UCI upholds the provisional
findings on Froome, the rider could face
a 12-month ban. That would rule him
out of next year?s Tour de France, where
he is attempting to win for the fifth time.
through plans to scrap the wealth tax on
everything except property assets and
introduced a flat 30 per cent rate on capital gains ? measures long demanded by
entrepreneurs and investors.
Mr Macron?s pro-business and techfriendly government is crystallising
momentum that had been building up
in France for years, businesspeople say,
thanks in part to changes introduced by
Mr Hollande. These include tax credits
for research that built on the country?s
strong engineering schools.
?French tech was already gaining
ground before the macro situation
changed,? says Rand Hindi, whose
start-up Snips runs an artificial intelligence-powered voice assistant. He cites
the 2012 creation of Bpifrance, a public
investment bank that poured money
into start-ups, as well as Station F, a
campus for new companies funded by
billionaire entrepreneur Xavier Niel.
The clampdown on immigration in
the US and the UK?s Brexit vote have
also made France more attractive.
Jean Meyer launched Once, a dating
app, in London in 2015. The UK was
appealing in terms of its ability to lure
international talent, access to capital
and more flexible labour market. But
after the Leave vote, it became almost
impossible to hire such staff in London,
so Mr Meyer moved back to France. ?We
were trying to hire a chief marketing
officer but we got rejected by four or five
amazing candidates just because we
were in London,? he says.
Snips, which originally planned to
hire 20 people in New York and 30 in
Paris, has hired 46 in the French capital
and only three in the US. ?Once Trump
and then Macron got elected, it changed
the opportunity for us,? says Mr Hindi.
?It made it very difficult to hire anyone
in America who isn?t American.?
But while the mood has changed
under Mr Macron, not everyone is convinced. Some argue that labour market
and fiscal reforms are still in their early
days and that France needs to do more
to prove it is now pro-business.
Audrey Richard-Laurent has moved
between California and Paris since 2012.
Now she is launching her wellbeing and
productivity platform, Awakeful, in San
Francisco or Los Angeles rather than
Paris. ?Creating a company in the US is
super-simple compared to France,? she
says. ?And France is a small market
compared to the US.?
But France is still attracting young
tech-savvy Americans put off by the
high cost of living in Silicon Valley.
Rob Zyskowski, a software engineer,
moved from the US to Paris to join Alan,
an insurance tech start-up whose
French co-founder also returned from
Silicon Valley. ?There was a lot of fear
and anxious energy in San Francisco,?
says Mr Zyskowski. ?It felt like it had got
to the point where the only way is down.
In Paris the feeling is of a burgeoning
scene.?
His sentiment is shared by Jorie
Koster-Hale, an American from New
Mexico who works as a data scientist at
tech company Dataiku in Paris.
?France is becoming more and more
on the radar as a place with innovation
and opportunities,? she says, ?even if
you?re not French.?
This is the third in our series on Europe?s
innovation comeback
?
4
FINANCIAL TIMES
Thursday 14 December 2017
INTERNATIONAL
Alwaleed?s Kingdom suffers
while its prince is detained
Activities on hold after arrest of ?Warren Buffett of Arabia? in corruption probe
Chinese collection of DNA
data sparks Uighur concerns
EMILY FENG ? BEIJING
Chinese authorities in Xinjiang have
begun collecting extensive biometric
data from residents aged 12 to 65 as
part of an increasingly advanced state
surveillance apparatus.
Government notices mandate police
officers and cadres to collect and record
pictures, fingerprints, blood type, DNA
and iris scans in six counties and prefectures of the north-western province
through specially-designed mobile apps
and a health check-up programme
offered to all Xinjiang residents.
Officials from each of the six areas,
which together hold about one-third of
Xinjiang?s 22m residents, confirmed the
authenticity of the notices but all
declined to comment. A spokeswoman
for Xinjiang?s Aksu prefectural government said she had been instructed not
to discuss such issues over the phone.
The collection is fuelling concerns
among Uighurs, a Turkic ethnic minority who have chafed against Communist
party rule, that the DNA data will be
used to match the organs of suspected
criminals who may face execution with
potential recipients, said Darren Byler, a
researcher at the University of Washington who specialises in Xinjiang. ?This is
hard to prove but there is a widespread
fear among Uighurs that this is what the
data will ultimately be used for.?
SIMEON KERR ? DUBAI
When Citigroup was battling to survive
the financial crisis, Prince Alwaleed bin
Talal was quick to come to the aid of the
US bank. As its shares tumbled, the
Saudi billionaire publicly backed
Vikram Pandit, Citi?s then chief executive, and raised his stake in the group
from 4 per cent to about 5 per cent. His
intervention helped to cement his reputation as the ?Warren Buffett of Arabia?.
Now it is Prince Alwaleed who is
engulfed in a crisis following his detention last month as part of Riyadh?s anticorruptioncrackdown.But,inhishourof
need,nobodyhaspubliclycometohisaid
as billions of dollars have been wiped off
his fortune and the investment firm he
founded, Kingdom Holding Company,
hasbeenplungedintouncertainty.
KHC has lost nearly a fifth of its value
since Prince Alwaleed?s detention, falling to $8.5bn and hitting the tycoon?s net
wealth by $2bn to about $16bn, according to Forbes magazine.
Talal Al Maiman, chief executive, has
said KCH, which is 95 per cent owned by
the prince and has more than $12.5bn
under management, ?enjoys a solid
financial position underpinned by a prudentandconservativefundingplan?.
But bankers who speak to KHC?s staff
say the office, atop an eponymous tower
in Riyadh, is a black hole of information.
Even those who have worked with the
billionaire or his investment team for
years know little of his fate or what the
impact on his company might be.
KHC is Prince Alwaleed?s main investment vehicle and, in his absence, any
real activity is on hold, bankers say.
The company says the prince was
moving towards a less hands-on role
before his detention. Mr Maiman said
he wanted ?to emphasise that KHC?s
experienced and seasoned team of senior executives . . . are focused on their
unwavering responsibilities to KHC?s
shareholders?.
But local and international lenders
are so alarmed by the confusion around
the prince?s arrest that they have put on
hold $1bn in loans to finance KHC?s
acquisition of a 16 per cent stake in
Banque Saudi Fransi from Cr閐it Agricole. ?One must assume that he will be
dealmaking for his future,? said a Saudi
banker. ?But in a broader sense, he is
done now.?
Prince Alwaleed is among the most
prominent of the 159 royals and businessmen detained in Riyadh?s RitzCarlton hotel as part of Crown Prince
Mohammed bin Salman?s crackdown.
Most have agreed to settlements under
which they will hand over some assets to
the authorities in return for freedom.
As the government targets at least
$100bn in the purge ? the equivalent of
the national debt ? investigators have
been raiding suspects? bank accounts.
People briefed on the investigations
have maintained Prince Alwaleed
intended to fight the allegations in court
rather than agree a settlement, and had
even hired lawyers, according to two
people. But a banker close to the 62year-old prince said he might still strike
a deal. If he does, it is likely he will give
Xinjiang province
Jerusalem
Abbas rules out US mediation
in Middle East peace process
ILAN BEN ZION ? JERUSALEM
Palestinian president Mahmoud Abbas
said yesterday the US could no longer
act as a mediator in the Middle East
peace process after Donald Trump?s
decision to recognise Jerusalem as the
capital of Israel.
Prince Alwaleed
bin Talal:
billions have
been wiped off
his fortune
since he was
detained at the
Ritz-Carlton in
Riyadh under
Saudi Arabia?s
anti-graft purge
Fayez Nureldine/Reuters
up some assets. One executive close to
the prince has extended his time abroad
as he fears being caught up in the crackdown. Another is planning to move
assets outside the Gulf to protect them
against any attempt by the authorities
to broaden the purge to members of the
prince?s circle, another person said.
Prince Alwaleed set up KHC in 1980
and its holdings range from stakes in
Twitter and Four Seasons Hotels and
Resorts, to Euro Disney and Flynas, a
budget Saudi Airline. In his office, which
feature magazine covers and photos of
the prince and of his meetings with
world leaders, unveiled female staff
work in western-style clothing.
The billionaire investor has long been
an outspoken advocate for change and
has championed women?s rights in the
conservative kingdom, hiring a female
pilot for his private jet.
His wealth includes vast tracts of land
stretching from Riyadh towards the
Eastern Province, where he has permission for property developments,
according to one banker. Real estate,
along with businesses such as his media
conglomerate, Rotana, could, along
?One must
assume that
he will be
dealmaking
for his
future. But
in a broader
sense, he is
done now?
with cash, make up a settlement, the
banker added. Some bankers say Prince
Alwaleed has loaded his assets with
debt. Others say he has deleveraged in
recent years, citing the sale of his stakes
in Rupert Murdoch?s 21st Century Fox
and plans to sell some Lebanese hotels.
The prince first invested in Citi in 1991
and it remains a core part of KHC?s portfolio, although his stake is now believed
to be less than 3 per cent. The bank has
been planning its return to Saudi Arabia
since quitting a joint venture there after
the September 11 attacks. Citi obtained
a licence in April but people close to the
bank say the prince was not central to its
expansion plans in the kingdom.
Like other associates, Citi executives
have said little about the predicament of
one of the bank?s biggest and best
known shareholders.
Michael Corbat, Citi?s chief executive,
last month described Prince Alwaleed
as a ?loyal supporter?, adding in an
interview with Bloomberg TV: ?We?ve
got a number of people being held under
this broad title of corruption and we
actually don?t know what the specified
charges or accusations are below that.?
Eurozone. Recovery
ECB looks to retain magic touch after vintage year
He described the US president?s decision as the ?greatest sin?, saying it was ?a
flagrant violation of international law?
that ?crossed all red lines?.
?The United States has chosen to lose
its eligibility as an intermediary and to
have no role in the political process,?
Mr Abbas told Muslim leaders. ?This is
our position and we hope you support us
in this.?
He was speaking at an emergency
summit of the Organisation of Islamic
Co-operation held a week after Mr
Trump declared that the US recognised
Jerusalem as Israel?s capital and said he
planned to move the US embassy to the
divided city from Tel Aviv.
Since taking office, Mr Trump has
promised to broker the ?ultimate deal?
to end the Israeli-Palestinian conflict,
and he has portrayed his decision on
Jerusalem as an inevitable recognition
of reality. Rex Tillerson, US secretary of
state, said last week that it would still be
up to the Israelis and Palestinians to
hammer out all other issues surrounding the city in future talks.
But the US president?s declaration has
CLAIRE JONES ? FRANKFURT
This will go down as a vintage year for
Mario Draghi. In 2017 the eurozone
economy has been firing on all cylinders
and the European Central Bank deftly
handled an extension to its landmark
bond-buying scheme.
But 2018 could prove taxing for the
ECB president as the pressure grows to
end quantitative easing once and for all.
With no big policy decisions imminent at their meeting in Frankfurt
today, the last of the year, the ECB governing council will have a chance to celebrate growth that has exceeded all but
the most bullish expectations and a jobless rate that is at its lowest level since
before the financial crisis.
A fresh set of economic forecasts are
expected to show the region?s recovery
powering ahead in 2018.
?After years of stagnation, 2017 has
become a year that you would never
want to see end,? said Carsten Brzeski,
economist at ING-DiBa.
?The eurozone has outperformed the
US and the UK, without high inflation.
It?s been the best year in ages. I would
expect the council to be patting each
other on the back this week.?
The strength of the region?s recovery,
however, has reopened divisions within
the council.
The ECB unveiled a sweeping set of
measures at its last meeting in late October, and is not expected to announce
any significant changes today.
In October, it extended its landmark
quantitative easing programme until at
least September next year but cut in half
the amount of bonds it intends to buy
each month, from ?60bn to ?30bn.
While there was strong support for
that decision, several members of the
council, including some from the ECB?s
inner sanctum, have since objected to
the ECB president?s assertion that the
bank has no intention of ending QE for
good in September.
Bond purchases were, Mr Draghi said
in October, ?not going to stop suddenly?
in the autumn of next year.
But some influential council members, including Bundesbank president
Jens Weidmann and ECB board member
Beno顃 C?ur�, believe the recovery is
now strong enough to shut down the
programme completely in September.
In the summer of 2015, finding an exit
strategy from the ultra-aggressive monetary support that the ECB has provided
over the crisis years was dubbed ?a highclass problem?.
?We?re really far from that,? Mr
Draghi said then. ECB watchers think
that 2018 will be dominated by such a
discussion, with dissenting voices growing louder from the spring onwards,
should growth remain on track.
The biggest concern will be that a misMario Draghi wants
QE to run beyond
September 2018
but other senior
bank figures want
it shut that month
step in communications or spats within
the ECB cause a market panic.
The one big blip for the ECB in 2017
came at its conference in Sintra, Portugal, in May when remarks by the ECB
president were interpreted as hawkish,
sparking a spike in the euro and eurozone government borrowing costs.
?Diverging voices are emerging again
? that will be the big challenge for
2018,? Mr Brzeski said. ?It?s important
the ECB keeps the message clear ?
the bank has now regained its magic
touch with markets after Sintra, but
it could lose it in the months ahead.?
Today, for the first time, the central
bank will publish projections about
what it thinks will happen to growth and
inflation in 2020.
Economic forecasts from eurozone
central bankers are expected to be
upgraded for 2018 and 2019, with a
slightly slower rate of growth for 2020.
Headline inflation forecasts could
also be upgraded with projections showing the ECB finally hitting its target of
just under 2 per cent by 2020.
But economists warn that the more
important core inflation measure,
which strips out changes in the cost of
oil and food and other volatile goods,
remains weak. ?Nobody cares about
headline inflation,? said Louis Harreau,
economist at Cr閐it Agricole.
Most expect the lack of real inflationary pressures to mean that Mr Draghi
will win out, with bond-buying continuing for the duration of 2018. Interest
rates are expected to remain on hold at
their current record lows into 2019.
?Our baseline scenario,? said Frederik
Ducrozet, economist at Pictet Wealth
Management, ?remains for the ECB to
terminate QE by early 2019 and to
deliver the first rate hike in the third
quarter of 2019, with risks tilted
towards an earlier move.?
enraged Arab and Muslim leaders and
threatened to strain relations with some
of Washington?s closest allies in the Middle East. Mr Abbas has cancelled a
planned meeting with Mike Pence, US
vice-president, during his visit to the
region next week.
The status of Jerusalem is one of the
most contentious issues in the IsraeliPalestinian peace process. Israel regards
it as its undivided capital and claims
sovereignty over the entire city. But the
Mahmoud Abbas,
Palestinian
president, said the
Trump decision on
Jerusalem ?crossed
all red lines?
international community views East
Jerusalem, which Israel captured during
the 1967 war, as occupied land and the
Palestinians see it as the capital of a
future state. No country has an embassy
in Jerusalem.
Turkish president Recep Tayyip
Erdogan, who hosted yesterday?s summit, said he invited ?all countries supporting international law to recognise
the holy city as the occupied capital of
Palestine?.
?We cannot be late any more,? he
added. Mr Trump?s decision triggered
protests across the occupied West Bank
and Gaza Strip.
Sanctions
Pyongyang accused of using
foreign banks to dodge curbs
DON WEINLAND ? HONG KONG
Growth has beaten forecasts
but reopened divisions at bank
over when to end bond-buying
Other places such as Shandong and
Beijing have experimented with limited
DNA collection to find missing children
or catch tax fraudsters, but Xinjiang is
the first region to extensively roll out
such policies.
?[DNA collection] may be something
the state wants to try out under the guise
of the Xinjiang state of emergency
before introducing across China,? said
Mr Byler.
Following ethnic riots in 2009, Xinjiang authorities have stepped up security measures, most of which disproportionately target Uighurs.
The DNA collection measures are part
of a region-wide registration system
launched in February and rolled out
first in southern Xinjiang, where Uighur
populations are concentrated.
Meanwhile, all Xinjiang residents of
all ethnicities must also submit blood
samples for DNA tests as of late last year
when replacing or renewing identification cards issued to every registered
Chinese citizen, according to officials in
Xinjiang?s Karamay city.
?What is creepy here is the Chinese
government can test out mass surveillance [in Xinjiang] because it?s able to go
really far without any form of scrutiny
or resistance,? said Maya Wang at activist group Human Rights Watch, which
this week released a paper on the DNA
collection practices.
A report from research groups in Washington and Seoul has highlighted the
sophisticated ways that North Korea?s
international finance network uses foreignbankstosidestepsanctions.
Hong Kong remains a host to a number
of companies placed under sanctions by
the US Treasury for their links to North
Korea?s nuclear weapons programme. A
report from the Financial Times in
November showed that at least 16 active
companies in Hong Kong were operated
by or connected to entities or individuals hit by US curbs.
Experts say such companies often act
as a lifeline between Kim Jong Un?s
regime and the global financial system.
The report, from the Washingtonbased C4ADS and Seoul-based Sejong
Institute, details how organisations connected to North Korea?s military use
front companies to access the global
financial system. It also names Bank of
America as a financial institution that
facilitated a remittance payment for a
front company in Hong Kong.
In a breakdown of a vast network of
North Korean businesses, the report
connects a high-level government fund
in Pyongyang, called Office 39, to a small
trading business in Hong Kong called
Shengang Trade & Investment. Shengang?s HK company has since been dis-
solved. Shengang, the report said, made
a payment in 2013 to an electronics
reseller on behalf of a Malaysia-based
company linked to the sales of military
equipment to Pyongyang and one of
North Korea?s US-sanctioned banks.
The report also highlighted how such
front companies accessed the international financial system through global
banks on behalf of sanctioned North
Korean entities, stating that the remittance payment was made through a correspondent account at Bank of America.
?While there was no overt linkage to
North Korea, the Hong Kong-based
company is a prime example of a remitting front company . . . effectively
obscuring the regime?s presence in the
international financial system,? the
report said. Daedong Credit Bank was
put under US sanctions in 2013 for links
to North Korea?s weapons programme.
The situation underlines the difficulty
regulators face in managing one of the
world?s largest financial hubs, where
tens of thousands of small businesses
routinely access international financial
services through banks. Hong Kong
implements UN sanctions but is under
no obligation to enforce those imposed
by the US. Its Commerce and Economic
Development Bureau said it had drawn
the attention of financial institutions to
the sanctions. Bank of America declined
to comment on the matter.
?
Thursday 14 December 2017
5
FINANCIAL TIMES
INTERNATIONAL
Interview. Paolo Gentiloni
Italian PM
urges EU to
push forward
on integration
A year after taking office,
low-key leader warns against
?excessive prudence in 2018?
JAMES POLITI ? ROME
Paolo Gentiloni, Italy?s prime minister,
is known for his low-key demeanour
and aversion to public confrontation.
But one year into a premiership that
many initially feared would be a weak
and ineffective stopgap administration,
he had a blunt warning for EU leaders:
the momentum of European integration
is in danger of stalling again.
?My worry is that while 2017 was the
year of a return of European ambition,
we could see excessive prudence in
2018,? Mr Gentiloni said in an interview
at Palazzo Chigi, the seat of the Italian
government in central Rome, ahead of
this week?s summit in Brussels.
?If we aren?t ambitious now that we
have stable and widespread growth
across all the eurozone and we also have
geopolitical voids to fill, we will really
miss an opportunity and we will go back
to questioning the strategic usefulness
of the project.?
Mr Gentiloni took over the mantle of
Italian prime minister exactly one year
ago from Matteo Renzi, after the stinging defeat of his predecessor?s flagship
constitutional reforms. At the time, the
63-year-old descendant of Roman
Despite the recent
downturn in
arrivals, migration
remains top of the
European agenda
for Italy
nobility seemed unlikely to make much
of a mark. But 12 months on, Mr Gentiloni has found his footing.
Italy remains an economic laggard in
the eurozone with higher than average
unemployment, yet growth forecasts
have nearly doubled, the country?s debt
yield is at the lowest levels of his tenure,
banking shares have bounced back and
migrant flows across the central Mediterranean are down 33 per cent compared with 2016.
Italians seem to appreciate his temperament even more than the results:
Mr Gentiloni?s approval ratings are consistently higher than those of the country?s other leading politicians. ?He feels
like his mission is to serve the state, not
his own ego, that?s the difference with
the others,? one chief executive of a
large Italian company said recently.
For Italy, this may be the calm before
the storm, however. A general election
is looming in early 2018 ? media reports
yesterday suggested the vote will be
held on March 4 ? and polls show that it
could deliver a hung parliament, or possibly even a victory for the anti-establishment Five Star Movement or a
resurgent centre-right led by former
prime minister Silvio Berlusconi.
But Mr Gentiloni ? who will not say
whether he would accept a second term
EU-UK relations
Call for ?tailor-made?
Brexit trade deal
Italy has called on the EU to offer a
bespoke Brexit trade deal to the UK in
an accommodating move towards
London, even as the bloc toughens its
stance on trade and transition talks.
?We need a tailor-made model for
the relationship between the UK and
the EU but the first move, in my
opinion, has to come from the UK
because the level of ambition needs to
come from the side asking to leave,?
said Paolo Gentiloni, prime minister.
Mr Gentiloni?s emphasis on a
bespoke model rather than an
agreement following the precedent of
previous trade deals contrasts with
other EU officials. Brussels argues that
the UK faces a choice between
remaining within the bloc?s single
market, like Norway, or pursuing a
more goods-oriented trade agreement,
such as the EU?s with Canada.
?There can be models of reference
based on deals the EU has with third
countries but these were all
done . . . building off a white sheet,
tabula rasa . . . Here we are doing the
opposite ? removing things from a
40-year-old structure of extraordinary
relationships ? and this operation is
as prime minister after the vote ? insists
fears of instability are overblown. ?We
have always been convinced Europeans,
convinced Atlanticists . . . These fundamental choices won?t change. If someone thinks the course of Italian politics
will become anti-European, against an
open society, against trade, or populist
as they say today, the facts will prove
them wrong.?
Top of the European agenda for Italy
is still migration. Despite the recent
downturn in arrivals, more than
620,000 migrants have disembarked in
its ports over the past four years.
Rome wants EU member states to
commit more money to tackling the crisis, but also ? controversially ? to
accept the mandatory redistribution of
refugees across the bloc. Donald Tusk,
the president of the EU Council, has proposed ditching the policy.
Mr Gentiloni was due to participate
yesterday in a summit near Paris with
Emmanuel Macron, the French president, Angela Merkel, the German chancellor, and leaders from the Sahel
region, and to hold direct talks today
with central and eastern European
countries most opposed to the idea.
?The EU cannot give up on common
solidarity,? Mr Gentiloni said. ?The idea
that every country does its own thing,
and history and geography decides
whose turn it is ? whether Greece, or
Italy or Spain or, who knows, even
Poland if there?s a crisis in north-eastern
Europe ? that just can?t be. There has to
be a common policy.?
Another priority for Italy is eurozone
reform. Rome backed much of a recent
blueprint by the European Commission
to overhaul governance of the single
currency. But there too, Mr Gentiloni
says it is crucial to keep the pressure up.
?If we think that on economic and monetary matters Europe can relax because
there is growth, this would be a mistake,? he said. ?It?s a moment to promote convergence.?
Mr Gentiloni has been troubled by the
Trump administration?s foreign policy
in the Middle East. ?This is a wake-up
call [but] Europe should not complain
about Trump. He is the president of the
US and they are our main ally. Europe
has a responsibility and a historic
chance to do its part,? Mr Gentiloni said.
In terms of the Iran nuclear deal, he
added that if the US Congress imposed
sanctions after Donald Trump?s move to
decertify the accord, the EU should simply press ahead. ?We have to keep supporting the nuclear deal and its implementation,? he said.
If ?Paolo the calm? ? as he was
described by Romano Prodi, the former
EU Commission president in La Stampa
this week ? has any sinking feelings,
they are that Europe?s new dawn of 2017
could just be an illusion.
?The wake-up won?t last for ever,? he
says putting his hand across his chest.
?The problem is: will Europe stop in
2018 while we wait for the government
solution in Germany, the Italian elections? This is the worry. If it stops, it?s a
big mistake.?
objectively unprecedented and
complicated,? he said.
While all trade deals are adjusted to
take account of the economies of
participating countries, Michel Barnier,
the EU?s chief negotiator, says the UK
cannot combine the benefits of the
single market with the freedom to
strike its own trade deals and set limits
on free movement of EU citizens.
Italian officials said Mr Gentiloni was
not trying to distance Italy from the
mainstream EU position but wanted to
stress the many intermediate levels
between the Norwegian and Canadian
models. They said the more ambitious
the UK wanted a deal to be, the more
it had to accept EU rules.
Italy?s insistence, shared by the rest
of the EU, that Britain move first in
defining what kind of trade deal it
wants comes as the bloc steps up
pressure on the UK for more details.
Mr Gentiloni said: ?I believe it would
be a mistake for Brussels, and
obviously also for Italy, to say the
model should be this or that.
?Italy is very satisfied with the fact
that we took the path of negotiations.
We were always against the idea of a
?no deal?. We are particularly satisfied
with regard to EU citizens in the UK
because it affects a few hundred
thousand Italians.? James Politi, Rome,
and Jim Brunsden, Brussels
What he
said
?If we aren?t
ambitious now
that we have
stable growth
across all the
eurozone, we
will miss an
opportunity?
?The EU cannot
give up on
common
solidarity. The
idea that every
country does its
own thing . . .
that just
can?t be?
Making a mark:
Paolo Gentiloni at
Palazzo Chigi, the
seat of the Italian
government, in
central Rome on
Tuesday
Alessia Pierdomenico
?
6
FINANCIAL TIMES
Thursday 14 December 2017
ARTS
FILM
Nigel
Andrews
W
ell, this is much better.
Even dragged by invisible wild horses (being a
non-Star Wars zealot);
even sitting at an
extreme side/front angle in a crowded
theatre; even tortured by the crepitation
of candy wrappers and popcorn bags
(can they be getting cracklier?),
I enjoyed Star Wars: The Last Jedi.
Why? Because it seems to be written
and directed by a human being, not a
committee to feed the monster. The new
auteur assigned to the saga is filmmaker Rian Johnson, best known for the
thriller Brick and the sci-fi adventure
Looper. Second ?why?? Because, unlike
the last two efforts, this fantasy film has
worked the organ of fantasy ? the
human imagination ? and hasn?t flexed
old formula elements till they crack.
There is a spell of torment when story
engines don?t quite fire, but it?s short and
at the start. Deep in a space arena, Carrie
Fisher as General Leia Organa organises
Rebellion activity with the weary magnetism of a star who has outgrown the
series, though sadly she did not ?
despite this completed performance ?
outlive it. Dear Carrie. Like a beautiful,
ageing tortoise, her head seemed to have
retreated almost into her shell. Her line
readings here are muted, speculative,
perhaps (charitably) wry. But she has
that inexplicable thing: screen authority. And it?s a marvel to have her at all.
In this film, she is the den mother passing dynamism, like a baton, to the
emerging young.
John Boyega is back as Finn, getting
better as the rebel stormtrooper stirring
the ethnic pot in a series that threatened, sometimes, to be an all-whites amdram in space. Like Harrison Ford?s
Han Solo ? though no one can quite be
like that ? he gets the dashinglyoffhand-swashbuckler concession.
Deep in another cosmic arena, on a
rocky island with beehive stone houses,
Daisy Ridley?s Rey interfaces with Mark
Hamill?s bearded, soft-spoken Luke
Skywalker. (Hamill does melancholy
serenity with a subtle twinkle.) She also,
daringly and I even wondered unprecedentedly, dialogues with a far-distant
Global Appointments
Presence: John Boyega as Finn in a Ski Speeder in ?Star Wars: The Last Jedi?. Below: Zhao Tao in ?Mountains May Depart?
A force to be reckoned with
Star Wars: The Last Jedi
Rian Johnson
AAAAE
Mountains May Depart
Jia Zhangke
AAAAE
Mountain
Jennifer Peedom
AAAEE
The Prince of Nothingwood
Sonia Konlund
AAAEE
character as if they were standing in the
same space. No holograms; no imagemagicking screens. The camera just cuts
unfussed ? action and reaction shots ?
between the two speakers and their two
different backgrounds.
The interlocutor is Adam Driver?s
Kylo Ren, the ?son of darkness?, glimmering and glowering in his Empire
spaceship. Unlike Ridley, an actress
searching for her character?s core and
vernacular (which I suspect don?t exist
in the renewed saga?s skimpy doodle
for a staff-wielding warrior-heroine),
Driver is the complete deal. He is a sombrely anguished angel-devil. The handsome gargoyle face is pale with inward
deliberation. We believe the violent
demons of this character?s vacillation.
Which side will he choose? He is the only
Star Wars character since the cycle?s start
to incite or excite the word ?Miltonic?.
We are hurled around space, for the
usual number of scenes, amid strafing
and exploding spacecraft. It all looks
good. The mighty noises drown out the
candy eaters. And the ships are designed
with an escalating ingenuity. Even their
skeletons are so lovingly detailed that
they burn, when blown up, like spectres
from a Leonardo fantasy sketch.
Writer-director Johnson can do the
wham-bam stuff. More important, he
seems able to make characters real, and
to move them into vivid, thrilling zones
of drama or crisis. Laura Dern is superb
as the Rebellion general promoted to
command in Leia?s temporary absence.
Dern snarls and grimaces with a zest
suggesting psychopathy. She insults
Boyega. She insults Oscar Isaac, back as
Rebel pilot Poe Dameron. But we?re
kept in suspense: is she actually good or
actually bad?
The Last Jedi saves the best sequence
till last. It?s a battle on a salt flat. It?s like
Alexander Nevsky in colour. The Rebellion?s armoured flying ships resemble
rust-bucket catamarans, with a single
downward-extending leg whose purpose, it seems, is to score the salt as if to
make it bleed. How else to explain the
gorgeous, mysterious whorls of red dust
or liquefactious red smoke in this scene?
It?s a scarlet apocalypse, scrawled like an
action painting across the virgin white.
After this ? I never thought I?d say it ?
I?m up for more. Bring on the next Star
Wars. And hooray that Rian Johnson has
been signed for three more films, a full
trilogy, later in the saga.
Jia Zhangke?s Mountains May Depart
has had a rocky journey around the
world. For an emotion-filled drama/
melodrama on an epic scale ? a seeming
bid to blast a path to populism from a
leading Chinese filmmaker long labelled
?austere? (Platform, Unknown Pleasures)
? it has taken the long route to western
release. Two and a half years to the UK,
dated from its 2015 Cannes premiere.
What?s wrong with the movie? Isn?t it
enough that the heroine Tao (Zhao Tao)
loves and suffers colourfully over a
quarter of a century (1999 to 2025)?
Isn?t it enough that the three men in her
life are two love rivals ? the dashing capitalist she marries, the illness-fated coalminer she perhaps mourns passing over
? and a son smitten with love himself in
the weird, off-worldish Australia where
the film fetches up? Doom, yearning,
passion: what?s the snag?
This artist is too good. That may be
the snag. He can?t tell a potentially trite
story ? a heartache opera across time ?
and leave it trite. Mountains May Depart
starts and ends with a blaze of audiencefriendly poignancy: two dance
sequences (both to the Pet Shop Boys?
?Go West?), the first introducing Tao in a
millennium-eve party, the second framing her feisty solitude in a snow-scape.
But between those marker points for the
sensitive masses comes a film whose
own story-mass just won?t stay simple.
Main characters disappear for years.
We don?t see the dashing moneymaker
between two big chunks in 1999 and
2025. The coalminer barely features
outside the middle section. The funeral
of Tao?s father is a marvellous sequence
? except that we?ve barely met him.
His quietus, though, is a key to the
film?s emerging theme. He dies, sitting,
with his mobile phone bleating in his
hand. The age of planet-shrinking materialism and technology is arriving in this
world; but dad has already picked his
berth in the next. Mountains May Depart
is about the coming of globalism. Money
tells; distances shrink; unconnected
countries become surreal outposts
of each other (Australia-China); and
human love is bounced around in that
vast, indifferent collider called the
21st century.
The film gathers complexity and challenge with its last act. Living down under
with his custody-winning dad, Tao?s 17year-old son Dollar ? a wry corruption
of the Chinese name Daole ? has a
romance with a fiftysomething Chinese
teacher (veteran star Sylvia Chang). It?s
uncomfortable stuff.
Again, though, it?s Jia?s story, not the
audience?s. Oedipus wrecks? Or Oedipus
reckons up the emotional damage in a
boy?s life? Missing mother and missing
homeland are one, the film is telling us.
They are one also with a China itself
?gone missing? in the homogenisation of
globalism. The story?s last cry of pain is
that sweetly tragic dance sequence. The
film rediscovers its heart. But the film
has never really lost it. It was just withheld from view, sometimes, by a sentimentality-averse master director,
unwilling to pin his emotions to his
sleeve or to those of his movies.
Here is your subject: mountains.
Please speak on it for 74 minutes without alliteration, pretension or billows of
classical music accompaniment
(Beethoven, Vivaldi, Chopin . . . ).
Mountain, from documentary-maker
Jennifer Peedom (Sherpa), doesn?t succeed, but it?s worth catching anyway. If
need advises, plug your ears. The globespanning imagery is thrilling: serrated
crags, fluted pinnacles, soaring rockcathedrals, the gorgeous, steepling,
Melvillean whelms of whiteness in
snow-capped ranges.
It?s like an old-style Cinerama travelogue, with popcorn populism replaced
by bardic vatism in the commentary.
This was written by mountainologist
Robert Macfarlane (Mountains of the
Mind). If the words don?t alliterate, conceptualise or rumble with metaphor,
you begin to feel narrator Willem Dafoe
won?t intone them. I?m all for philosophising. But here too many questions
are pondered, about the evolution of
human attitudes to high places, in this
garrulous yomp through history from
the pre-sublime to Romanticism to
today?s industrialised Everest culture,
where ?climbing has become queueing?.
That alliteration, at least, is apt
and acute.
Salim Shaheen is a writing, directing,
producing and acting prodigy in Afghanistan. Hence the title, The Prince of
Nothingwood. Hollywood? Bollywood?
This country?s film industry, jests
Shaheen, is Nothingwood.
He effectively is Afghan popular cinema. Action dramas, thrillers, musicals;
or all three combined. Or so claims
French documentarist Sonia Kronlund
(who seems almost creepily sycophantic, at times, to this dyed-haired swaggerer). Shaheen has made more than a
hundred movies, we?re told, and even
kept going under the Taliban. When the
two crews ? Shaheen?s and Kronlund?s
? visit Bamiyan, the Afghan Orson is
coaxed to condemn the Taliban?s infamous blowing up of the Buddha statues.
This is the film?s best, most sobering
moment. A cavorting artist-autocrat,
and his female Boswell, pause to inhale
the air of history and reality before passing on to their next business appointment with headlong hokum.
Thrilling:
climbers arrive
on the summit
of Aiguille Verte
in the French
Alps in
?Mountain?
Charismatic ? and camper than Freddie
POP
Queen + Adam Lambert
O2 Arena, London
aaaae
Michael Hann
It is 26 years since Freddie Mercury
died, five more than Queen were
together with him. For much of that
time, the band?s remaining members
appeared to be trying to work out what
they actually were without the singer
who defined them so thoroughly. There
were solo projects, albums of repurposed Mercury recordings, and a spell
with former Free singer Paul Rodgers
that most observers deemed ill-judged.
Then, in 2012, they teamed up with
Adam Lambert, who had performed
with them as an American Idol contestant
in 2009. Lambert, it seems fair to say,
saved Queen from a fate worse than nostalgia tours: that of fading away.
The 35-year-old singer, camper even
than Mercury, reminded everyone he
was not a replacement. He never imitated Mercury, and at times ? as on ?I
Want It All? ? his phrasing drifted into
American classic rock in a way Mercury
would never have contemplated. And
before ?Don?t Stop Me Now? he eyed the
20,000 fans and declared: ?A lot of
you are having that inner monologue . . . ?He?s not Freddie!?? Instead,
he accepted, ?I?m a fan just like you guys.
Except I?m up here in the gayest suit
you?ve ever seen.? Well, except for that
and an exceptional vocal range, oodles
of charisma and charm, and the sense
that even if Brian May and Roger Taylor
had been incapable of anything more
than just being present he could still
have carried the show.
May and Taylor, though, were fully
committed. Perhaps a little too much:
the show sagged when Lambert left the
stage for both of them to take over
singing, and the guitar and drum solo
spots took up 20 minutes that could
have been better used mining one of
rock?s greatest catalogues. That said, it?s
their band, something Lambert took
care to acknowledge.
To hear so many hits piled on top of
one another ? ?Another One Bites the
Dust?, ?I Want to Break Free?, ?Fat Bottomed Girls?, ?Somebody to Love?,
?Crazy Little Thing Called Love? and so
many more ? was like being in a room
with the world?s most spectacular jukebox, while ?Radio Ga Ga? was a
reminder how long their gift for writing
timeless pop lasted, and how far they
were able to evolve.
Almost the whole thing was a thorough joy. Shame about the solos, though.
Oodles of charm: Adam Lambert
queenonline.com
?
Thursday 14 December 2017
7
FINANCIAL TIMES
FT BIG READ. EUROPOPULISTS
FT series Far-right forces fared less well than many feared in elections this year, but rising opposition to
immigration means their nativist policies will still present a challenge to the European project.
By Anne-Sylvaine Chassany and Guy Chazan
M
arseille?s far-right politician St閜hane Ravier
feels robbed. After winning control of the Northern district of the French
Mediterranean town in 2014 ? one of
the dozen victories emblematic of the
National Front?s surge in local elections
that year ? he targeted a seat in the
National Assembly. The race, in June,
was his to lose: the outgoing Socialist
had been convicted of embezzlement.
But a 34-year-old political novice threw
her hat in the ring at the last minute.
Alexandra Louis, the candidate for La
R閜ublique en Marche, President
Emmanuel Macron?s centrist movement, came second to Mr Ravier in the
first round of voting. But in an echo of
the presidential runoff, which saw Mr
Macron defeat FN leader Marine Le Pen
in May, Ms Louis won the seat with a 52
per cent share of the second round vote,
amid low turnout and a campaign to
stop her far-right rival.
?She applied for the En Marche
endorsement on the internet and
secured it hours before the registration
deadline,? says Mr Ravier. ?My voters
were gutted about losing the presidential elections. They didn?t show up.?
Mr Ravier?s defeat in Marseille is typical of the impact of Mr Macron?s
unlikely political rise on the FN and its
blend of national-populism in France.
After winning the presidency, the
Europhile leader secured a large majority in parliament ? triggering a sigh of
relief in liberal circles across the EU.
Months before, nativist parties feeding on fears of multiculturalism, globalisation and European integration had
seemed to be almost unstoppable. European capitals braced themselves for a
turbulent electoral year in which popu-
drifted too far to the left,? he says.
The CDU leadership in Berlin has also
got the message. In October it finally
acceded to a demand from its more conservative sister party, the Bavarian
Christian Social Union, that Germany
should not let in more than 200,000 refugees a year, except in the case of
humanitarian emergencies, and should
keep them in special transit zones from
which they can be swiftly deported if
their asylum requests are rejected.
The CDU?s French sister party, Les
R閜ublicains, is drawing similar conclusions after the stinging defeat of
Fran鏾is Fillon, its scandal-stricken
presidential nominee. Laurent Wauquiez, its new leader, has rejected any
alliance with the FN, but has vowed to
?bring back the disappointed voters
who voted for the FN?.
The 42-year-old former EU affairs
minister intends to do so via a dose of
identity politics and returning to the
?true values of the right?. He is advocating measures including an end to medical health insurance for undocumented
migrants. ?France should not adapt to
foreigners. Foreigners must adapt to
France,? he has said at party meetings.
Pressure is mounting on Mr Macron,
whose popularity has slipped from twothirds to about 50 per cent since his election, and his cohort of new parliamentarians. They appear increasingly isolated in Europe in their efforts to hold
?The more you talk about
immigration and Islam, the
more important the issues
become. But Macron?s recipe
can hardly be exported?
list parties vowing to upend the EU
looked set for huge gains.
Then the tide seemed to turn. First
there was Mr Macron?s victory in
France. And in September, Angela Merkel, the German chancellor who let in
more than 1m refugees in 2015-16, most
of them from Muslim countries, won the
federal election. There were hopes that
the populist wave may have peaked: and
that France and Germany would now
come together to relegitimise the European project.
But academics warn that Mr Macron
might be the exception, not the rule.
More than 11 weeks since the Bundestag
poll, Ms Merkel has still failed to form a
government, and may face repeat elections. It is not the most stable of foundations on which to build an effective
defence of the EU?s liberal values.
Meanwhile, nativist ideas are continuing to infiltrate mainstream politics
throughout Europe. Some warn that, as
migratory pressures grow, the EU?s
unity could come under threat.
?Many have misjudged the French
presidential outcome, when in reality all
the facts are pointing in the other direction,? says Patrick Moreau, a Berlinbased researcher at Centre National de
Recherche Scientifique, a French state
research institute. He identifies the
2015 refugee crisis as the turning point.
?Since then, immigration and its perceived threat to national identity have
been key factors to understand shifts in
European politics,? adds Mr Moreau.
the centre by betting that economic
reforms will help address anxiety over
immigration, identity and security.
Holding the line
French
president
Emmanuel
Macron and
German
chancellor
Angela Merkel:
both won
elections this
year but face
threats to unity
in their own
countries and
the EU as
pressures over
migration grow
growth has returned to the region and
unemployment is falling; this is the
reformist Mr Macron?s gamble. But
many experts say it is here to stay. ?Populism doesn?t just feed off economic
insecurity, but also off cultural clashes,?
says Jean Garrigues, a French historian.
The liberal People?s party of Dutch
prime minister Mark Rutte warned
immigrants during elections in March
that they had to assimilate or leave the
country. Sebastian Kurz, the 31-year-old
wunderkind who took over the leadership of Austria?s centre-right People?s
party, campaigned on halting ?illegal
immigration?. He is now in talks with
the far-right Eurosceptic Freedom party
to form a government and has also suggested a rapprochement with the Visegrad group ? Czech Republic, Hungary,
Poland and Slovakia ? that opposed
Brussels? plan to relocate refugees
across the bloc.
Is immigration positive or negative
for the country? Percentage of respondents
Positive Negative
Italy
Cultural and economic insecurities
Austria
Anti-immigration sentiment is on the
rise. Nearly two-thirds of EU citizens
believe immigration has a negative
impact on their countries, according to a
survey released last month by Fondapol, a Paris-based liberal think-tank.
In 2014, 52 per cent of Europeans
believed immigration was ?an economic
burden? according to Pew Research
Center. In Germany, the rate was 29 per
cent ? compared with 51 per cent now
saying it has a ?negative impact? in the
Fondapol survey. After a series of Islamist terror attacks, 58 per cent of Europeans now view Islam as a threat. They are
ambivalent about refugees: two-thirds
of those polled say it is a duty to rescue
them, but 54 per cent say their countries
cannot afford to take more of them.
It is no surprise therefore that in a
string of elections this year, voters have
veered to the right. Nativism is now a
generally accepted notion in countries
such as the Netherlands and Austria,
says Cas Mudde, a Dutch political scientist at the University of Georgia in the US.
?Their leaders have banged on about a
?nativism-light? strategy to win,? he says.
The trend intensified amid the economic decline and austerity policies
engendered by the eurozone debt crisis.
Some wonder if it might recede now that
France
Germany
UK
60
40
20
0
20
40
60
Are you worried about Islam?
Percentage of respondents
Not worried Very worried/worried
Austria
France
Italy
Germany
UK
70 60 50 40 30 20 10 0 10 20 30 40 50 60 70
Do you trust in government?
Percentage of respondents
Yes No
Italy
France
UK
Austria
Germany
80
60
Source: Fondapol (2017)
40
20
0
20
40
60
80
This tougher line is already beginning
to influence broader EU policy. Last
week, the European Commission
ditched its ?burden-sharing? system in
favour of a voluntary plan and vowed to
beef up border controls. The backtracking may herald less solidarity among EU
members in other areas: the Netherlands, for instance, now has a four-party
rightwing coalition which has enshrined
a tough stance against eurozone integration in its coalition deal.
?I fear the rise of the nationalistic
right, which has its roots in the migration crisis, will put the brakes on economic reforms too,? says Enrico Letta, a
former Italian prime minister and head
of Institut Delors, a pro-EU think-tank.
?The whole notion of EU solidarity is
under threat.?
Prof Mudde is among those who
believe that ?it all falls down on the
Macron-Merkel axis to resist?. But relying too much on Ms Merkel might be
risky. She, too, is under pressure from
the rightwing of her party, the Christian
Democratic Union, in the wake of elections in September that saw the conservative bloc fall to its worst result
since 1949. Its performance was particularly bad in Saxony, a small east German
state of 4m people. Local party chiefs
are still shocked at the outcome in the
state, a CDU stronghold since German
reunification in 1990.
?I have no explanation for it,? says
Ulrich Reusch, the CDU?s regional chairman in Meissen. The party was beaten
into second place in Saxony by the rightwing populist Alternative for Germany,
a group that exploited anger over the
influx of refugees.
The election marked a breakthrough
for the AfD. Set up only in February
2013 to protest against the Greek bailouts, it won 13 per cent of the national
vote and entered the Bundestag for the
first time, the only far-right party to do
so in 60 years.
Again, the biggest factor was immigration. Ms Merkel?s decision to keep
Germany?s borders open at the height of
the refugee crisis and the resulting backlash fuelled the rise of the AfD, particularly in eastern Germany.
Saxony, the most successful of the
east German states, with the lowest
unemployment and one of the best education systems in the country, did not
take in that many asylum-seekers. But
that was the point, says Detlev Spangenberg, one of the crop of newly elected
AfD MPs from the state.
?Security should be for everyone?
Left: the National Front?s St閜hane Ravier, who lost out
on a National Assembly seat to Alexandra Louis, top
right, of En Marche. Right: Michael Kretschmer, Saxony?s
new prime minister from the CDU?s conservative wing
?Saxons have looked very closely at
what has happened in the west of the
country, and they don?t want to end up
like that,? he says in his office in Radebeul. High levels of immigration have,
he says, scarred Germany?s big cities,
leading to ?parallel societies? and
?no-go? areas for police.
Even CDU politicians say the government misjudged the mood in the east.
?People here feel ?we brought down
communism in 1989, we fought for and
won our freedom and then these politicians come and say we have to open the
border and let in all these refugees?,?
Frank Kupfer, head of the CDU group in
Saxony?s parliament, says. ?There is this
fear that someone is going to come and
>11
Weeks in which
Chancellor Angela
Merkel has been
unable to form a new
government
79%
Respondents in
eastern Europe who
believe immigration
has a negative
impact. The average
is 56% in western
member states
?There is this fear [in
Saxony] that someone is
going to come and take
everything away from
us again?
take everything away from us again.?
In response to the AfD?s success, the
CDU in Saxony is tacking to the right.
The man named in October to succeed
Stanislaw Tillich, who resigned as the
state?s prime minister after the CDU?s
election humiliation, is Michael Kretschmer, a conservative opposed to gay
marriage and adoption rights for gay
couples. He last year co-authored a
pamphlet calling for a strong German
?national culture?, based on the concepts of ?homeland and patriotism?.
Mr Kupfer says that to regain the trust
of voters the CDU needs to push for
speedier deportations of failed asylumseekers and scale back ?too generous?
welfare payments to refugees. ?We have
Read the series
See how Europe
has coped
with populist
forces in a
turbulent year
ft.com/
europopulists
Back in Marseille, Ms Louis, a labour
relations lawyer, listens to Andr� Pinatel, a resident of Ch鈚eau-Gombert, one
of the 100 former villages that are now
part of the city. Robberies have
increased in this wealthier part of town
and Mr Pinatel suspects petty criminals
from the nearby Clos La Rose estate, one
of the deprived immigrant enclaves that
make the city and its 1m residents a
mosaic of distinct communities. It is no
secret in Marseille that the police are
reluctant to intervene in some estates,
tightly guarded by drug dealers. Ms
Louis tells the retiree she is pushing for
the constituency to be one of the first to
experiment with a new local force.
But the measure will not be just for
Ch鈚eau-Gombert, she says. The estates
must feel safe, too: ?There are troubled
neighbourhoods, it?s true. Clearly, in my
constituency, there are lawless zones, I
have no problem admitting it, but security should be for everyone.?
Ms Louis believes En Marche will
uproot the FN by dispelling false ideas
about immigration and Islam rather
than adopting its rhetoric, ?improving
the people?s daily lives, in areas such as
housing, jobs, transport?, and better
integrating the second or third generations of immigrants.
Prof Mudde believes it is the best
strategy: ?The more you talk about
immigration and Islam, the more
important the issues become,? he says.
But he doubts this will be enough to
counter nativism. ?Macron?s recipe can
hardly be exported,? he says.
Germany and other countries in
northern Europe have carried out similar reforms, he says, and are doing better economically than France, yet they
still have experienced a rise in populism. ?Nativism is progressing in countries where there?s low unemployment.?
In Marseille, Fr閐閞ic Pinatel, Andre?s
son who also attended the meeting with
Ms Louis, says the FN ideas are now well
established. ?You know why people vote
for the FN here? It?s because they have
had enough of immigration,? he says.
?You have five or six kids from the
estates scouting the area. Then cars are
dismantled, there are robberies. People
connect the dots.?
Mr Ravier, the FN politician who is a
member of the Senate, France?s upper
house, believes Ms Louis is missing the
point: ?Even if the results of the legislative elections suggest otherwise, people
are worried about immigration, insecurity, multiculturalism,? he insists. ?People want to feel French in France, and
Marseillais in Marseille.?
Additional reporting by Mehreen Khan
in Amsterdam and Ralph Atkins in Zurich
?
8
FINANCIAL TIMES
Letters
Turning off the tap of
throwaway packaging
THURSDAY 14 DECEMBER 2017
An opportunity for
Republican renewal
The defeat in Alabama should shift the GOP away from Bannonism
Luther Strange would have won the
general election for Alabama Senate in
a walk. He sits in the Senate now,
appointed to the seat vacated when Jeff
Sessions became Donald Trump?s
attorney-general. A determined opponent of government regulation and a
rock-ribbed conservative Republican,
Mr Strange fits the politics of his state
well. He did not get the chance to contest, however. He lost in the Republican
primary, by a significant margin, to
Roy Moore ? a former judge, a showman, and an ideologue.
Mr Moore was twice removed from
his post as Alabama?s chief justice for
disobeying the rulings of higher courts.
He argued that God?s law (as interpreted by Roy Moore) should have the
final say. He wears a big hat, rides a
horse, brandishes a gun, slanders Muslims, and characterises America as a
new Sodom. He also, according to a
series of allegations that came to light
while the general election was contested, made sexual advances on girls
as young as 14 when he was in his 30s.
Mr Moore?s wretchedness has turned
the inconceivable into political reality.
On Tuesday, Alabama elected Doug
Jones, its first Senator from the Democratic party in a quarter of a century.
It is hard to imagine any other
Republican losing the race. This should
temper the impulse ? now running
high among Democrats ? to extrapolate from Tuesdays results to the midterm election next year, and even to the
presidential race in 2020. The evidence
of the election shows, at most, that
President Trump, who supported Mr
Strange in the primary and Mr Moore
in the general, cannot by himself guarantee high turnout among his core supporters. He needs help from the candidate. But he is unlikely to be stuck with
one as awful as Mr Moore again.
Though the Alabama result does not
clearly signal a decline in the electoral
prospects of the president or his party,
it may ? and if America is lucky, will ?
mark the beginning of the end of Steve
Bannon?s political influence. The president?s former chief strategist threw all
his weight behind Mr Moore. The
results were not just a loss, but a snapshot of what Mr Bannon?s brand of conservatism offers the national party. Not
only did Mr Jones, according to CNN?s
exit poll, capture a staggering 96 per
cent of the black vote and win by comfortable margins in urban counties and
among the college educated. He also
trounced Mr Moore by eight points
among all voters under 65, and by 16
points among women. The demographic divisions looked like those in
last year?s presidential voting, but more
so ? with the result that the election
swung the other way.
Mr Bannon has talked of winning
four to five Senate seats in the midterms. The lesson for the Republican
party is that Mr Bannon?s combination
of white resentment and economic
nationalism is a dead end rather than a
path to a permanent majority. The
party?s relationship with Mr Moore,
unlike Mr Bannon?s, was fraught. Many
prominent Republicans disavowed
him. But once the president had given
his backing, the Republican National
Committee, which has withdrawn its
support, resumed its contributions. Mr
Moore?s defeat should not only remind
the party of the priority it once placed
on personal virtue, but also of the dangers of pursuing inward-looking, pessimistic, and exclusionary politics.
A diminished majority in the Senate
? the balance now stands at 51-49 ?
will make it harder for Mr Trump to
advance his legislative agenda. Mr Bannon, however, is a much bigger threat
to the president?s legacy than the loss of
a single Senate seat. If Mr Trump
changes course now, he may yet grasp
victory from defeat.
Climate disclosure takes
a giant step forward
Pressuring companies to be more transparent on risks is a good idea
Beyond the shores of the Potomac,
where America?s commitment to tackling climate change remains in question, there is gathering evidence that
the political momentum toward action
has reached a tipping point.
One promising sign to have emerged
from this year?s One Planet summit
near Paris came in the form of a pledge
by 225 financial institutions to begin
holding the world?s worst emitting
companies to account. Investors from
eight of the worlds?s top asset managers, pensions funds, insurers and top
sovereign wealth funds, as well as 20
globally systemic banks, backed the
initiative. This will see them join the
Climate Action 100+ to pressure companies to cut greenhouse gas emissions
and improve disclosure and oversight
of climate-related threats.
Climate change provides three types
of risk to companies. In the short term
there will be consequences if governments ? with or without Washington ?
get serious about enforcing their commitments made under the Paris treaty
to limit temperature rises to 2C. Should
they do so, there will be costs to companies who fail to fall into line.
The far more serious longer-term
risk is that governments fail to act or do
too little too late. Measuring the potential impact on bottom lines of cataclysmic events that would hypothetically
follow, together with the social and economic consequences, will not be easy.
But the threat of these becoming more
frequent is no doubt real.
Global greenhouse gas emissions
are forecast to rise 2 per cent to a record
high this year, driven by economic
growth in China, according to the Global Carbon Project. This brings to an
end a three-year period with almost no
growth in emissions. The alarming
effect on the environment is undeniable. This week, a report by the US government?s National Oceanic and
Atmospheric Administration found
that permafrost in the Arctic is thawing
faster than ever, and seawater is warming and ice melting at the swiftest pace
in 1,500 years. The implications for
insurance companies in the near and
medium term are obvious.
A third risk is that advances in green
technology happen faster than imagined. While this provides huge opportunities for those entrepreneurs who
keep apace, it could be disastrous for
those that do not. Fossil fuel companies
would be left with stranded assets,
their commercial viability jeopardised.
There is no binding legal framework
to enforce disclosure on these issues.
But the fact that so many of the world?s
top financial institutions are prepared
to push for more transparency is
encouraging. That ExxonMobil has
pledged to fall in line is also a welcome
mark of change. Until the last decade
the world?s largest listed oil and gas
company actively sought to suppress
concerns about the damage that carbon emissions are causing. That it now
promises to go public shows it is still
possible to mobilise big US companies
to address climate change even when
the US president is so explicitly hostile
to the agenda.
Calculating the likely impact will be
inexact and the information provided
will initially at least be of varying value.
But for certain categories of companies
all three main risks will be material to
the bottom line. So it is not just activists
campaigning for divestment from the
worst emitters that have an interest in
greater disclosure about the implications of climate change. Ordinary
shareholders need to know too.
Making it more difficult for companies to ignore the cost of their carbon
footprint could play a role in forcing
them to reduce it. This is an exercise in
transparency and peer pressure that
will have long-term consequences.
Sir, The UK?s retailers make a vital
contribution to the economy. With
revenues of more than �0bn, the
sector employs 4.6m people in the UK.
Over the past decade Britain?s retailers
have in the main focused on recycling
in a bid to reduce the environmental
impact of the plastic waste they
produce. But we have to accept that
this isn?t enough ? by recycling plastic,
we are merely recycling the problem.
Unlike materials such as aluminium
and glass, plastic packaging cannot be
recycled ad infinitum. Most plastic
packaging items can only be recycled
twice before becoming unusable.
Regardless of how much is invested in
Britain?s recycling infrastructure,
virtually all plastic packaging will reach
landfill or the bottom of the ocean
sooner or later. It is therefore essential
that retailers and packaging
manufacturers work together to turn
off the tap of throwaway packaging.
Retailers should take advantage of the
raft of zero-plastic packaging solutions
that provide a real alternative to
conventional plastic.
Campaign group A Plastic Planet
believes supermarkets can drive a shift
away from throwaway packaging by
introducing a plastic-free aisle in their
stores. We agree. A plastic-free aisle
would be good for business. With at
least a third of consumers saying that
they base their purchasing decisions on
the social and environmental impact of
the products they buy, a plastic-free
aisle would help supermarkets win
over this growing band of informed
consumers.
We call on the UK?s retailers to
support this imaginative initiative, and
help us to secure a better future for our
children and grandchildren.
Andy Clarke
Former CEO, Asda
Sir Ian Cheshire
Chairman, Debenhams
Lord Rose of Monewden
Former CEO, Argos; former Chairman and
CEO, Marks and Spencer
Lord MacLaurin of Knebworth
Former Chairman, Tesco
Lord Stone of Blackheath
Former Managing Director, Marks and
Spencer
Lord Jones of Birmingham
Business Leader
Lord Hayward
Former Chief Executive, British Soft
Drinks Association
Lord Cameron of Dillington
Former National President, Country Land
and Business Association
Baroness Scott of Needham Market
Former Board Member, Lloyds Register;
Party President, Liberal Democrats
Lord Clement-Jones
Former Co-Secretary and Legal Director,
Kingfisher
Lord Foster of Bath
Associate, Global Partners Governance
Lord Hodgson of Astley Abbotts
Former Director, Marston?s
Brent Hoberman
Founder, Lastminute.com
Lord Goldsmith
Former Attorney General
Lord Judd
Former Director, Oxfam
Baroness Miller of Chilthorne Domer
Unicef Board Member
Lord Rees of Ludlow
Astronomer Royal
Baroness Lister of Burtersett
Author and Professor
Jayn Sterland
Managing Director, Weleda UK
Germans like
Macron, but are
suspicious of his
reform plans
Notebook
by Roula Khalaf
Thursday 14 December 2017
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
If you are not satisfied with the FT?s response to your complaint, you can appeal
to the FT Editorial Complaints Commissioner: complaints.commissioner@ft.com
Raising gross investment is Japan?s proper focus
Sir, Martin Wolf (?Conventional
wisdom on Japan is wrong?, December
13) uncritically accepts some
contentious conventional wisdom
when he argues that ?Japan?s private
sector already has an exceptionally
high investment rate, especially for a
high-income country with structurally
low growth?.
The government of Japan has been
kind enough recently to offer estimates
of ?net capital stocks of fixed assets? in
real terms. While careful attention
should be paid to the question of what
meaning, if any, attaches to the notion
of a quantity of capital, the new data
show that, despite a shallow recovery
since 2012, Japan?s net private capital
stock is a little lower today than it was
10 years ago. Japan?s ?exceptionally
high investment rate? turns out to have
been insufficient, on this measure,
even to maintain the volume of private
non-residential capital at the level it
was in 2007.
While one is aware of the various
ways of construing the words ?capital?
and ?investment?, consideration of
Ricardo?s ?machinery problem? should
alert us to the implications of the
difference between viewing this type of
question in net and in gross terms. In
particular, it should remind us that, in
the presence of technical progress, the
key to the evolution of the real wage
rate is the volume of capital
accumulation that is going on. In Japan,
it has not been going on at all for a
decade. This suggests that raising gross
investment, as a direct route to raising
net investment, is the proper focus of
Japanese policy and not the ignis fatuus
of ?productivity? and ?demographics?
or the theology of austerity.
Alexander Kinmont
Representative Director & CEO,
Milestone Asset Management,
Tokyo, Japan
Mrs May is in no
position to ?consent?
Catalonia?s civil servants
showed their dependence
Sir, Wolfgang M黱chau, in ?Sneaking
back into the single market?
(December 11), says that ?Theresa May
has consented, for all intents and
purposes, to stay in the single market?.
This is wrong, because it?s not a matter
of the UK, de haut en bas, ?consenting?
to stay in the single market. The EU
needs to agree, and regulatory
alignment alone will not be enough to
secure its agreement. The prime
minister would need to cross three
more of her red lines ? free movement,
payments to the EU and the European
Court of Justice?s involvement, all in
perpetuity ? and there?s no chance of
that.
Rather than securing single market
membership, Mrs May is heading for
the worst of both worlds: turning us
into the geopolitical equivalent of
eunuchs, where we follow the EU?s
rules without a say, which in turn will
hamstring our ability to cut trade deals
with the rest of the world; and getting a
trade deal with the EU which is a bit
like Canada?s and, as such, will do very
little for our world-beating services
industries.
Hugo Dixon
London W10, UK
Sir, The most telling gauge for the
commitment of the Catalans to
independence was witnessed on the
occasion of Spain assuming direct
administration of the state?s
government on Monday 30 October;
this followed the Legislature?s vote to
separate on the previous Friday. That
Monday, the bureaucrats and officials
of the newly-declared independent
state showed up for work and carried
out their duties ? like any normal day
? but under the imposed Spanish
authority. Did that not strike anyone
else as unusual behaviour for rebels
and outcasts? Perhaps the Catalan civil
servants feared the loss of job security,
pension and position if they publicly
supported independence and
demonstrated accordingly?
It does not speak well of the strength
of a nation?s economy when the most
sought-after jobs by that nation?s ?best
and brightest? are not found in the
private sector, but in the Civil Service.
It tells you that something is very
rotten in Denmark . . . or in this case
Spain.
Ted Gaffney
Waterford, CT, US
Britain could have saved
itself all that expense
Sir, It appears that the UK could have
avoided all of the difficulties and
expense of Brexit by putting the plan
on hold until 2025. If Martin Schulz of
Germany?s Social Democrats gets his
way, requiring the EU members to sign
on to a ?new constitution? or leave the
EU, the UK could have stayed on,
helped to develop the new agreement
and made it so intrusive that many EU
members would opt out, including the
UK. They would then be ?asked? to
leave and would have been in a better
bargaining position, perhaps even
requesting a fee from the EU to leave.
They could have then formed the
United States of Opt-Outers.
S Horwitz
Bethesda, MD, US
Should we be worried?
Sir, When Janan Ganesh and Gideon
Rachman both write soothing articles
about government Brexit policy on the
same day (December 12), it brings
Virgil to the front of any thinking
Brexiter?s mind: Timeo Danaos et dona
ferentes. The government must have
committed some tactical error.
Gregory Shenkman
London W8, UK
I discovered a new German hero on a
recent visit to Berlin. Politicians hold
him up as the embodiment of a
historic moment that must be seized
and a vision that must be embraced.
Except that this German hero is not
German: he?s Emmanuel Macron, the
youthful French president.
At a conference on German foreign
policy, I heard both Sigmar Gabriel,
the foreign minister, and Cem
Ozdemir, the Green party chief, sing
the praises of Mr Macron, and urge
chancellor Angela Merkel to respond
to his call for radical European reform.
Two days later, Martin Schulz, the
Social Democrat leader, sounded more
French than the French president,
arguing for a United States of Europe.
Mr Macron has successfully
presented himself across Europe as a
new hope for mainstream parties
struggling to counter the
Euroscepticism peddled by populists.
In Germany, though, the alignment
with Mr Macron is, above all, a matter
of political calculation.
Germany?s traditional stability has
been upset by an election result in
which the main parties lost votes to
the more radical fringes. The SPD,
partners in the last government, had
ruled out another grand coalition with
Ms Merkel?s Christian Democratic
Union. But they?ve now changed their
mind out of national necessity, and
they need to justify their reversion to
their pro-European base. As one
delegate at the conference put it:
?Macron gives the SPD a narrative to
tell the base that the party is needed.?
?Am I overdressed for the North
Pole??
Skating on thin
ice in Aden
Sir, Michael Skapinker?s review
(December 11) of Languages After Brexit
mentions the over-use of figurative
phrases by native English speakers.
In 1948 my father was serving in the
RAF in Aden and acting as an Arabic
interpreter. Some local tribesmen had
been causing trouble, so they were
rounded up to be warned about their
behaviour.
His commanding officer ordered him
to speak to them in the following
terms: ?Tell them that they are skating
on thin ice and that they need to pull
their socks up or I will be down on
them like a ton of bricks.?
Julian Tunnicliffe
Royston, Herts, UK
Restaurant prices and the
pressed-for-timeconsumer
Sir, The pricing policies Leo Lewis
describes in ?Finding the best deal in
Japan?s all-you-can-eat economy?
(Notebook, December 12) are not only
the result of ?substantial fixed costs?
faced by many businesses. We should
not forget about the demand side of the
equation: consumers.
In rich countries, most consumers
are constrained more by time than by
income, that is, prices, for their
entertainment spending. It is not
surprising that caf閟 and restaurants
are setting prices by ?time? rather than
by ?food consumed? at the table. As we
all know, with desserts and wine by the
glass priced at $12, menu prices have
little connection with the cost of food
and drink!
Ira Sohn
Professor of Economics and Finance,
Montclair State University, NJ, US
Predictably, Macron fever hasn?t
reached the CDU, which views the
French proposals more cynically as a
way of loosening Germany?s tight
fiscal purse. Within the larger
population, too, Mr Macron is well
regarded; his reform proposals less so.
In a survey of German attitudes to
foreign policy commissioned by the
K鰎ber Stiftung, a think-tank, France
has supplanted the US as Germany?s
most important partner. But when
asked whether they supported the
development of a European economic
and financial policy, and the
establishment of a European minister
of finance ? as put forward by Mr
Macron ? only 39 per cent of
respondents were in favour.
Ms Merkel, too, has reservations.
But at a time when her star is
dimming, and Europe has been
shaken by Britain?s imminent
departure from the EU and the
election of a US president with
questionable commitment to
European security, she needs a
stronger French partner. And she can?t
appear dismissive of the new
European hero.
Will she give a big speech of her own
to answer Mr Macron?s landmark
September address at the Sorbonne,
where he laid out his reform
proposals? Her critics say she must.
Her allies say she won?t. She?s happier
leaving emotions and theatre to the
French.
?Germans long for a French
president we can work with,? Jan
Techau, a policy analyst, told me. ?But
FT has confused me
with a moral volte face
Sir, How can it be that Donald Trump
was the FT Person of the Year 2016
despite being a known predator of
women, and Susan Fowler is the FT
Person of the Year 2017 because she
confronted predation of women and
?inspired women to speak out??
I am confused as to the FT?s moral
compass.
Colin Christie
London SW3, UK
Your shiny gold bitcoins
don?t actually exist . . .
Sir, I am sure I cannot have been the
only person to notice the positively
delicious irony with which almost
every newspaper article, television
report and internet page uses an
illustration of a shiny gold ?bitcoin? to
represent a concept of which perhaps
the defining quality is that it has no
physical form.
Edward Dixon
Simmons & Sons,
Henley-on-Thames, Oxon, UK
COMMENT ON FT.COM
David Allen Green?s blog
Brexit: Leavers may not have intended it, but
parliament is beginning to reassert itself
www.ft.com/david-allen-green
Merkel finds big vision statements
suspicious and she dislikes binding
herself. She wants to be flexible at all
times. That?s her strength.?
Mr Macron serves another useful
purpose for Germany: he can take on
the mantle of leader of the free world
that Ms Merkel wears so
uncomfortably. Even as Germany tries
to put its internal house in order, it is
debating its role in the world. A
majority of Germans remain opposed
to their government playing a larger
role in international affairs. But
policymakers are beginning to
recognise that the US?s disengagement
from Europe, and the rest of the
world, did not start with the Trump
administration and will not end when
he is out of office.
That means not only that Europe
will bear more responsibility for its
own defence but also that it has to be
more active in its own neighbourhood.
While Ms Merkel is loath to guide
the western liberal order, she is more
comfortable throwing her weight
around in areas that directly affect
Germany. No issue features higher on
the domestic agenda than migration.
So Ms Merkel is backing a Marshall
plan for Africa.
As Mr Gabriel said last week, the
days of standing on the sidelines are
over for Germany. But, assuming she
succeeds in forming a new
government, Ms Merkel won?t stray
too far from home and will keep Mr
Macron by her side.
roula.khalaf@ft.com
?
Thursday 14 December 2017
9
FINANCIAL TIMES
Comment
Alabama?s #MeToo warning to Trump
AMERICA
Edward
Luce
I
t is as though a Republican took the
District of Columbia or Britain?s
Labour party swept Berkshire.
Once in a while electorates do
things so out of character that it
takes effort to keep perspective.
Doug Jones?s victory in Alabama is a
case in point. The Deep South usually
abhors Democrats. But the result should
not be confused with the coming of a
national Democratic wave. This was a
repudiation of a uniquely odious candidate: Roy Moore is accused of molesting
underage girls. Just enough conservative Alabamans thought even a proabortion liberal Democrat would be better than that. But Donald Trump disagreed. He is Tuesday night?s big loser.
The winner was the #MeToo wave
against sexual harassment.
It is a measure of the Republicans? difficulties that it nominated an Old Testament misogynist in the midst of a backlash against powerful men who prey on
vulnerable women. A sensible move
would have been to choose a woman. Or,
failing that, perhaps a man with nice
things to say about women, such as
Luther Strange, the man Mr Moore
unseated. Instead, Alabama?s Republican base went for a man who insisted he
had only ?dated? young girls after
receiving their mother?s permission. On
Tuesday night, their mothers came out
to vote or abstained. It should not take a
clairvoyant to see that one coming.
Nor is genius required to imagine
where it goes. The #MeToo road leads to
the White House. Much like Robert
Mueller?s Russia investigation, the campaign against sexual harassment has an
ultimate target in mind. The question is
how Mr Trump now responds.
The president has dropped some
thick hints in recent days. On Tuesday,
in a tweet heavy with sexual innuendo,
he implied Democratic senator Kirsten
Gillibrand had offered favours in return
for campaign donations. A few days ear-
lier it emerged that he had told a Republican senator that the voice on the
Access Hollywood tapes that were
leaked shortly before last year?s election
was not his. Until now he said that the
tapes, which recorded his boasts about
grabbing women by the genitals, were
harmless banter. When backed into a
corner, he usually lashes out. His accusers should put on their flak jackets.
If a diehard evangelical
state will vote for a liberal,
the Democrats believe they
have struck electoral gold
The Alabama result has two implications. The first is that Democrats will
intensify their campaign against male
predators. It is hard to imagine the
#MeToo movement having gone viral to
such an extent if Mr Trump were not
president. It is now hard to imagine that
it will stop. If even a diehard evangelical
Christian state will vote for a liberal, the
Democrats believe they have struck an
electoral gold mine. Other Republican
states could take note and put up more
acceptable candidates. Indeed, the
entire party could convert to feminism.
But it cannot do anything to undo the
fact that its president is accused of harassment by at least 16 women. Mr
Trump?s accusers will now be emboldened. They will have an army of wellwishers urging them on.
Democratic figures with dubious
records should think of something else
to do. Do not expect Bill Clinton to
appear on any Democratic platforms in
the near future. Al Franken, the Minnesota senator who said last week he
would not run again, will now not
change his mind. Other scandals will
doubtless break. There will be zero tolerance.
America is undergoing a belated gender revolution. But it should not be confused with a national strategy for the
Democrats. The party is as far as ever
from developing a message to appeal to
middle America?s dreams. It cannot rely
on Republicans to keep on picking Roy
Moore-like figures. It must also be careful of over-reaching. If Democrats think
they can force Mr Trump out over sexual harassment, it could boomerang.
The second effect of Alabama will be
to deepen the Republican civil war.
Stephen Bannon, Mr Trump?s former
chief strategist, is blaming Mr Moore?s
defeat on the party establishment. In
spite of his loss, almost three-quarters of
Alabama?s evangelical voters believe the
allegations against Mr Moore were fake
news. In the next few days, Republicans
will spare no effort to ensure final passage of the unpopular $1.5tn tax cut.
Their senate majority will now fall to
just 51-49. But it will be a while before
Mr Jones takes his seat. There will be a
scramble to pass it before he does.
After that, the culture wars will
resume on a nastier scale than before.
On one side will be Republicans who
believe in choosing sane candidates who
stand a chance of winning. On the other
will be Mr Trump egged on by Mr Bannon. ?This is a sick system,? Mr Trump
said of US politics last week. On this
point, the #MeToo campaign and Mr
Trump are of one mind.
edward.luce@ft.com
Bitcoin casts a
shadow over
bank payment
BUSINESS
John
Gapper
I
t does not feel coincidental that the
bitcoin frenzy lifted the cryptocurrency to new highs this week as
HSBC escaped the threat of criminal prosecution for having allegedly laundered at least $880m for Mexican drug barons. The fiercer the regulatory squeeze on banks, the greater the
demand for other means of storing and
moving money.
Cryptocurrencies traded peer to peer
rather than being settled through banks
have so many uses that it is impossible
to know how much demand is driven by
criminality. One thing is clear: banks
face growing rivalry from a shadow payment system that ranges from cryptocurrencies to electronic platforms
including Alipay and mobile wallets
such as M-Pesa in Kenya.
The old way to transfer money without having to go through a bank is cash,
which is obstinately persistent. Despite
the expansion of credit, debit and contactless cards, nearly everyone uses
cash regularly. The drug smuggler who
launders money across borders in highvalue banknotes is an outlier; most cash
loyalists find comfort in its familiarity
and reliability.
While cash transactions used to be the
mainstay of banks? services to individuals and small businesses, this is fading as
they concentrate on electronic payments, encouraged by regulators. A dispute has broken out between UK banks
and independent operators of free cash
machines, who complain that card issuers will create ?ATM deserts? by paying
them less per withdrawal.
The difficulty of drawing cash directly
from banks does not stop people from
wanting to use it. As Victoria Cleland,
chief cashier of the Bank of England,
admitted in a recent speech, cash is ?a
puzzle?. The value of notes in circulation
rose by 10 per cent last year, the fastest
rate in a decade: the more that banks
bear down on a messy payment method,
the more some resist.
This is reminiscent of the rise of the
shadow banking system in the early
2000s as lightly regulated credit vehicles sprung up alongside traditional
bank lending. This time it involves what
Dan Awrey and Kristin van Zwieten of
Oxford university call the shadow payment system: electronic payments settled by banks are expanding and so are
the alternatives.
Non-cash transactions such as debit
and credit card payments are growing
by 11 per cent a year, squeezing out
cheques. The spread of cards and contactless payments is making it easier to
pay for even small items electronically.
That suits banks, which run transaction
platforms and supervisors that want to
curb money laundering.
David
Pilling
B
ack in the nobler days of the
African National Congress,
when Nelson Mandela
stepped down after serving
only one term as South
Africa?s president, his chosen successor
was the former mining union leader
Cyril Ramaphosa. Mr Ramaphosa lost
out, subsequently withdrawing into private business where he amassed a small
fortune.
Twenty years later, he has a chance to
make Mandela?s wish come true by
becoming head of the ANC at a fiveyearly conference to be held this weekend. That would put him in pole position to become president of the country
when general elections are held in 2019.
Those who want to salvage the soul ?
not to mention the electoral fortunes ?
of the ANC regard Mr Ramaphosa as
their only hope. The party that once
inspired the world with its vision of a
non-racial, equal-opportunity society
has descended far from those ideals. Not
only has it become, under President
Jacob Zuma, a party of rank corruption.
Almost worse, it is woefully incompetent, lacking a coherent vision of how to
transform the lives of the people it pretends to serve. Its slogan of ?radical economic transformation? has been empty
rhetoric, designed to disguise the fact
that many of its officials are busy feathering their own nest.
In a ghastly symbol of just how far the
ANC has fallen, a report this month
revealed that Mandela?s funeral, held
four years ago, was a parody of poor
planning and graft. As one of the great
leaders of the 20th century was laid to
rest, not only were his tributes rendered
into gibberish by a fake signer for the
deaf, some $20m intended to alleviate
poverty in his home province of Eastern
Cape was misspent or stolen.
Can Mr Ramaphosa reverse the slide?
First he has to win. That is no sure thing
in spite of the fact that a majority of ANC
delegates appear to back him. His opponent is Nkosazana Dlamini-Zuma, a
SCIENCE
Anjana
Ahuja
D
o you regard yourself as an
intellectual? Are you a keen
seeker of specific facts, anxious to plug those rare
knowledge gaps that surface at work events and dinner parties?
If so, I respectfully suggest that you
deserve a C for learning. A study out this
week reveals that the personality trait of
openness, which reflects the ability to
live in the moment, is more crucial to
learning than intellectual curiosity,
which describes a penchant for academic knowledge, abstract ideas and
intellectual pursuits.
The research, published in the journal
Personality and Social Psychology Bulletin, implies that the current teachand-test mode of schooling is not terribly good at turning out proficient learners. Rather than encouraging children
to memorise facts and sit a string of
exams, we would be better off encouraging them to be enthusiastic explorers of
whatever environments they find themselves in, whether a classroom or a convenience store. That way, learning
becomes a natural feature of everyday
life rather than a purposeful activity
geared to a particular outcome.
Many academics subscribe to the
?investment theory? of adult intelligence, first proposed in the 1940s by
psychologist Raymond Cattell. He theorised two components to intelligence:
first, cognitive ability; second, the propensity to ?invest? that ability, or
exploit it. That second component is
where personality comes in. You might
We would be better off
encouraging children to
be enthusiastic explorers
of their environments
But cash is especially valued by people who either do not have much money,
or have plenty. The former comprise
lower-income families who find it easier
to budget with a tangible form of money.
One US Federal Reserve study found the
highest allegiance to cash among 18to-24 year olds and households earning
less than $25,000 annually.
Cash is also private. In some economies, people use cash because they do
not trust governments or the rule of law:
41 per cent of Romanians use cash to
pay their rent or mortgage, according to
an ING study. Even in Germany, only 28
per cent of people believe card and bank
payments are highly private.
Some of the wealthiest use cash for
this reason, amassing ?500 and
Cryptocurrencies have so
many uses it is impossible
to know how much is
driven by criminality
SFr1,000 notes, which can be stashed in
Swiss bank vaults when interest rates
are low. High value banknotes are also
used by criminals for laundering, as the
US Drug Enforcement Administration
says, ?drug trafficking is a very cash-intensive exercise?.
This binary pattern of use by the
lower income and the rich applies to
shadow electronic payments. M-Pesa
developed in Kenya as a means of storing value on mobile phones rather than
in banks. Grab, the Singapore-based
ride-hailing company, takes payments
for rides on GrabPay, its mobile wallet,
and makes loans to drivers based on
patterns of GrabPay income.
Meanwhile, cryptocurrencies were
partly created as a challenge to fiat
money issued by banks and central
banks, and the bitcoin pioneers
included criminals using trading platforms such as Silk Road. Bulk cash seizures by US law enforcement have fallen
from $800m in 2010 to less than $400m
last year, partly because it has become
easier to launder cash electronically.
There are legitimate roles for cryptocurrencies ? even speculation in bitcoin
futures on exchanges. But the fact they
are settled through a blockchain ledger,
the underlying technology, rather than
by banks under the direct oversight of
regulators, is part of their appeal. Just as
Germans want privacy by using cash,
bitcoin holders seek out the shadows.
This leaves a core deposit and payment system, which is tightly regulated
and moving to cashless methods, alongside a growing periphery. Cash and cashlike platforms, some tied to banks and
others operating at the technology frontier, form a poorly understood and regulated alternative.
Judging by their liking for cash,
cryptocurrencies and mobile wallets,
many people appreciate having a
shadow system. Whether they know
how it works, and the risks they are taking, is another question. From past
experience of financial crises, it is likely
that no one really does.
been shrinking. Twenty-three years
after the ANC took over power, about
one in three black South Africans is
unemployed and 17m depend on
income support. Inequality, as measured by the Gini coefficient, has widened.
It would not take a great deal to
restore a modicum of investor confidence and achieve growth rates of, say, 3
or 4 per cent. South Africa has many
advantages, including abundant natural
resources, an industrial base and institutions that, though battered, have
weathered a full-scale assault. Though
much of the ANC is rotten, there are
many ? both within the party and outside ? who cling to its ideals.
The problem for Mr Ramaphosa is
that he needs more than that. So deep
are the economic and social problems ?
both those created by apartheid and
those compounded by ANC misrule ?
that South Africa would need decades of
Asian-style expansion to address them.
Not even Mandela could manage that
miracle. Restoring his legacy would be a
start. But it will not be enough.
be naturally smart, but if you are also
lazy then success may elude you.
The more academically inclined have
traditionally been thought to be good
learners. Dr Sophie von Stumm, a developmental psychologist at the London
School of Economics, set out to scrutinise the extent to which personality fits
into this picture. She recruited about
650 people to variously undergo four
tests of differing academic rigour: the
easiest required volunteers to peruse a
website on Croatian lakes, while the
most demanding was a long multiplechoice test on a dense 2,000-word academic text. The volunteers were also
given separate tests to gauge their openness to experience, one of the so-called
big five personality traits, and to measure their intellectual curiosity.
The paper?s conclusion was unexpected and provocative: intellectual
curiosity didn?t have a bearing on how
well volunteers performed on the tests
but openness to experience did. The
correlation was largely independent of
cognitive ability.
As Dr von Stumm explains: ?Being
open to information means you absorb
all of it without any judgment that it will
be helpful.? In other words, people who
are ?open? are always taking in information ? and consequently always learning. She hopes that children?s education
policy moves away from narrow testing
regimes and towards the encouragement of open exploration.
To become better learners, then, we
should become more receptive to the
world, eagerly embracing everything on
offer. Unfortunately, personality traits
remain rather stable over time. One
does not change from a wallflower to a
cultural wanderer overnight.
But while traits don?t really budge,
emotional states do. One notable
attribute of people who score highly on
measures of openness is their imagination and their capacity to engage emotionally with their environment.
This is, perhaps, the secret formula
when it comes to learning: success is
about making students feel for a subject. A fabulous teacher puts you, emotionally, in the moment. She can make
you care, if only for 50 minutes, about
verb endings in Latin; or about the aweinspiring fact that photosynthesis uses
light to produce glucose.
Whether or not you regard yourself as
an intellectual, this research conveys a
powerful message: when you are open to
the world, you engage. And when you
engage, you learn.
david.pilling@ft.com
The writer is a science commentator
john.gapper@ft.com
Ramaphosa can still save the ANC
AFRICA
Seek new
experiences,
not facts, if you
want to learn
former minister and head of the African
Union and none other than Mr Zuma?s
ex-wife.
That gives Mr Zuma, who faces 783
counts of alleged corruption, more than
a passing interest in seeing her elected.
If, this weekend, he can use his formidable political skills and powers of patronage to push Ms Dlamini-Zuma over the
line, Mandela?s wish will once again be
thwarted.
The party that once
inspired the world with
its vision of a non-racial
society has fallen far
Even assuming Mr Ramaphosa can
overcome that obstacle, the task he
would face in reviving both the fortunes
of the ANC and, more important, of
South Africa itself, are formidable.
If he becomes ANC president, he
would first need to ease Mr Zuma out of
the national presidency. Because the
ANC?s internal elections do not coincide
with national ones, Mr Zuma theoreti-
cally has two years to go as leader of
South Africa.
Once fully in charge, Mr Ramaphosa
would need to stop the rot within his
own party and, by extension, the
nation?s independent institutions ?
including the public prosecutor, the
police and the tax authority. He can
achieve much by appointing competent
officials, not ones whose chief qualities
are their pliability or willingness to help
out friends and business associates.
Yet reversing the cancerous corruption at the heart of the South African
state goes beyond that. Mr Zuma?s relationship with the Gupta family, which
has allegedly benefited commercially
from ties to the presidency, has created
a new network of crony interests that
will not be easily expunged. As Mr
Zuma?s deputy, Mr Ramaphosa has
stood largely silent as the party?s integrity has dripped away.
If he can at least partially rebuild the
ANC?s moral standing, it will be easier to
pursue the sort of compact between
business, government and labour
needed to revive modest growth. Under
Mr Zuma, the economy has ground to a
halt. In per capita terms, it has actually
?
10
FINANCIAL TIMES
Thursday 14 December 2017
Ofwat: watered down
The five-year pricing framework set by the UK water industry?s regulator ensures dividend stability for
investors regardless of negative headlines. But Ofwat?s proposal to cut cost of capital targets could change
that. The premium over asset value at which listed companies trade is already starting to fall.
Dixons Carphone:
monthly ailments
The name Dixons Carphone dates back
to the time when mobile phones were
so bulky they had to be installed in
vehicles. It turns out the company?s
business model may also belong in
another era. A lot rests on a rethink.
Yesterday, the company reported
half year pre-tax profits less than half
last year?s level, and nudged the top
end of its full-year forecast down by
�m. It will restructure its UK mobile
phone business model to make it more
profitable.
Traditionally, mobile phone retailers
doled out handsets for free and
recouped the cost over one or two years
? in effect extending finance to mobile
networks. That was fine when handsets
were relatively cheap, the pace of
technological innovation rapid and
networks in growth mode.
The market has matured. Handsets
cost a fortune and the incremental pace
of change has slowed the frequency of
purchases. The retailer is right to
question why it should continue to
shoulder �n of receivables each year
on behalf of bigger companies with
lower finance costs. The challenge is
how to generate the same profits and
cash flow, while tying up less capital.
Given that it connects a third of new
mobile subscribers each year, Dixons
has clout with the networks. But it also
takes some of their margin, so it needs
to be careful not to overplay its hand in
any renegotiation. It could also reduce
overheads by closing stores or turning
them into franchises. Or it could sell
handsets and contracts separately, as is
common in other European markets.
Shareholders appear happy to give
management some time to figure out
the answers. The shares, which trade
on a forward earnings multiple of just
6 times, rose 8 per cent. Mobile is only
one part of the business; the rest is
electricals retailing, where Dixons has a
25 per cent UK market share and
where things are going fine.
The balance sheet is in good shape
and dividends will be maintained this
year. That said, trading could worsen as
Britons? incomes are squeezed, while
the already-faint prospect of a bid has
receded after German peer Ceconomy
acquired a 25 per cent stake in France?s
Fnac-Darty.
Chief executive Seb James exudes
Regulatory average
cost of capital targets
UK utility dividend yields
Twitter: @FTLex Email: lex@ft.com
Per cent
breezy confidence much as David
Davis, the minister negotiating Britain?s
exit from the EU, once did. But, like his
counterpart in government, he needs
to achieve a delicate balancing act
within a limited time.
4
2
6
JOTTER PAD
1994 99 2004 09
14
19
0
Share premium
Sources: Thomson Reuters Datastream; Ofwat; USBe; Bloomberg; companies
Enterprise value vs regulated assets (%)
United Utilities
Severn Trent
40
Pennon
30
20
10
0
-10
2006 08 10 12 14 16
Water is a utility well suited to
monopoly. It is locally sourced and
expensive to transport so customers
are grouped by geography.
Competition is tough to impose so
the regulator must wield power in
other ways. Ofwat?s latest pricing
regime, released yesterday, is a
reprimand dressed up in 259 pages of
methodology. It should leave the likes
of Severn Trent and United Utilities
only moderately less flush.
Ofwat had no real choice but to
appear tough. Stories of raw sewage
frothing up in England?s rivers
left it open to criticism. Suppliers
admitted last month that some
technicians still use divining rods. If a
key part of the industry?s tool kit is
two bent pieces of metal then the
scale of leaks begins to make sense.
An aggressive regulatory regime
should in theory narrow the premium
to regulated asset value at which the
industry?s three listed companies trade.
Ofwat?s past estimates of water groups?
cost of capital have been criticised as
overly generous in an era of record-low
interest rates. This time around it has
cut the allowable cost of capital ? a key
determinant of both customers? bills
and shareholders? profits ? from
3.7 per cent to a record low of 2.4 per
cent. That means lower guaranteed
returns between 2020 and 2025.
For listed companies, the average
premium to RAV is now 10 per cent ?
already a four-year low. It could fall
further once Ofwat releases its final
decision in 2019. But the effect of the
cap and tougher new operational
targets will be leavened by a parallel
decision to remove limits on financial
incentives for meeting those targets.
The lack of share price movement
suggests investors are not unduly
worried that profits will be reduced.
Across privatised telecoms, energy
and water companies, the regulators?
ability to interfere is an acute source
of risk. Pricing frameworks limit
gains, even if they underpin secure
dividend yields. The real uncertainty
lies in the transition period from one
framework to another. Most are
becoming more severe, but only
water is subject to Labour leader
Jeremy Corbyn?s calls for outright
renationalisation. This, not the latest
regulatory price fiddle, is the big risk.
was launched in March. The pace is at
least as good as previous blockbuster
consoles such as Sony?s PlayStation 4,
which has gone on to sell more than
70m units since its launch in 2013.
Yet Nintendo continues to fret and
dither about the mobile market. It is
seeking new partnerships with
software developers, The Wall Street
Journal reported on Tuesday, to try to
strengthen its smartphone games.
This latest effort follows the 2015
decision to acquire a 10 per cent stake
in DeNA, a video games company, with
a plan to launch five smartphone
games together. Only three arrived by
the March 2017 target; a fourth came
last month; none has set the world
alight. One question is why ? since
Nintendo is so good at developing
hardware and software in house ? it
needs to spend time and resources
working with outside partners.
The more fundamental question:
with the Switch selling so well, why
does Nintendo bother with mobile? As
Nintendo once believed (and probably
still does), there is little point eroding
margins by selling cheap digital apps
(and giving a 30 per cent cut to Apple)
when customers are still happy to pay
$300 for a console and $60 for a game.
The risk is that Nintendo stays in a
boom-and-bust cycle governed by its
variable hardware prowess. The Switch
has done well; the Wii U flopped. And
as smartphones become better as
gaming devices, and perhaps the
vehicle for virtual reality, it is harder
for Nintendo?s gadgets. Getting mobile
right remains a necessity in the long
run; Nintendo needs to switch it up.
4
2010
11
12
13
pessimist of popular misconception.
Her prophecies were accurate, but
doomed to be ignored.
Nintendo:
the big switch
Does mobile matter to Nintendo?
Mario, the plump plumber who is
Nintendo?s best-known character, did
finally make his debut on smartphones
last October. But there is little
connection to the 80 per cent surge in
Nintendo?s shares this year.
Instead, it is Nintendo?s tried-andtrusted strategy of favouring its own
hardware that has powered the success.
The Switch, Nintendo?s latest console,
has sold more than 10m units since it
14
15
16
Global Appointments
CROSSWORD
No. 15,732 Set by GURNEY
6
8
Bitcoin ETFs:
making a bomb
The guy who brews Lex?s morning latte
wants to get into bitcoin. Because of
him ? and thousands like him ? retail
fund managers want to get into bitcoin
too. The advent of bitcoin futures
creates an opportunity. It also creates a
headache for regulators. Should they
approve retail funds that make
leveraged bets on cryptocurrencies,
which are illiquid and susceptible to
manipulation?
In March, the US Securities and
Exchange Commission squashed an
application from the Winklevoss twins,
clean-cut cryptovangelists, to list an
exchange-traded fund. This autumn,
an ETF platform run by the New York
Stock Exchange shelved plans to quote
the rival Bitcoin Investment Trust.
How long can the SEC resist? Cboe
Global Markets has launched bitcoin
futures contracts. CME, another
exchanges group, will follow suit.
Morningstar says there has been an
anticipatory ?gold rush? of filings to list
ETFs in bitcoin futures.
ETFs could give bitcoin a makeover.
Investors spooked by numismatic
nerdery would happily buy the funds.
The cash-settled futures could become
easy for managers to trade too. Unlike
bitcoin ? the base asset of the Bitcoin
Investment Trust ? they are regulated.
A bomb in a gift box is still a bomb.
Cryptocurrencies are speculative assets
that lack a legitimate function. The
SEC will have to balance that against
two arguments. First, that adults do
not need nannying. Second, that adults
want the funds. The Bitcoin Investment
Trust has been wildly popular. The
trust, traded over-the-counter, has
risen in value from $165m to $4.3bn
this year. The shares usually trade at a
45 per cent premium to assets. The gap
is sometimes 100 per cent.
Such enthusiasm, combined with
deregulatory pressure, could leave the
SEC looking like an embattled
Cassandra. The irony is that the
prophetess was not the reflexive
Per cent
Centrica
United Utilities
Severn Trent
Pennon
ACROSS
1 Returning group I linked
with humorist ? South Island
believers? (10)
7 Story ? ancient, gripping,
action-packed first of all? (4)
9 Member of community using
terminals of metro network (4)
10 Note English wave ? feature of
Wimbledon (3-7)
11 Top class news: river extension
(6)
12 Port house, northern, old,
something outstanding (8)
13 German writer finishing off at
simple Cumbrian village (8)
15 Heard golf course feline (4)
17 Male captivated by superb peak
(4)
19 Careless friends going wrong
way at father?s hotel (4-4)
22 Remote class fee adjusted (8)
23 Some recommend electing
genetics pioneer (6)
25 It?s not just description of
brunette? (10)
26 Drops painter home (4)
27 Hint prompt learner?s taken in
(4)
28City described briefly in French
article (3,7)
DOWN
2 So prone to change, his slips
provide amusement (7)
3 Removing right cause anger in
joint (5)
4 Unexpectedly meet son in
shelter ? I must think about it
(3,2,3)
5 Relatively stagy group of
Russian origin? (3,5,7)
6 When rising, picked up incorrect
article of clothing (6)
7 Steadfast woman last to go for
horsy type? (6,3)
8 Troublemaker ultimately
crowing having supplanted king
in citadel (7)
14 Wise to save time even in Herts
town (9)
16 Dairy product of standard
expected by writer at hospital
(8)
18 Feature of lunch Anne liked in
Bristol maybe (7)
20In second half, Leinster, docile,
lacking vitality (7)
21 Pique about left winger (6)
24Runs into facility for discovering
ancient language (5)
Solution 15,731
5 ( * , 6
(
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6 ( $ 2 7
,
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8
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$
7
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2
&
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0
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17
2
Toshiba/Western Digital:
another byte
Case closed for Western Digital. For
Toshiba shareholders the really
interesting questions are just about to
begin, as the group?s survival seems
ensured. Yesterday the two companies
announced a settlement that will help
the Japanese conglomerate push along
the $18bn sale of its memory
businesses to a consortium led by Bain
Capital.
Sign-off from antitrust regulators is
another hurdle that the sale process
must pass. Toshiba will retain a 40 per
cent stake according to the plan.
SK Hynix, a South Korean memory
manufacturer, is among the buyers. A
�0bn ($5.4bn) capital raising last
month alleviated bankruptcy concerns,
reducing pressure to sell the profitable
memory units, including the disputed
joint ventures with Western Digital.
That leaves other options: keep the
business or raise money another way.
One way might be through an IPO.
The chessboard has become a lot
more crowded because the new
shareholders are 35 global hedge funds,
including activists Elliott and
Effissimo. They will probably push for
more reforms than just a maximum
return from the proceedings linked to
the memory business.
Judging by market reaction, Western
Digital shareholders were more
relieved than Toshiba?s. The west coast
memory group gets to keep its jointventure stakes and will invest in newgeneration manufacturing capabilities.
This will secure an important source of
product supplies. Its shares rose 3.5 per
cent in after-market trading, while
Toshiba shares managed less than that
during the Tokyo trading day.
Toshiba estimates that its memory
unit alone will generate more than the
group?s total operating income this
year. Meanwhile, its infrastructure
units still have stable contracts. By
retaining equity in its chip business,
Toshiba has some options where it
previously faced an early demise.
Clearly the activists see value, and
given the possibility of a turnround, the
rest of the market should follow them.
Lex on the web
For notes on today?s breaking
stories go to www.ft.com/lex
?
Thursday 14 December 2017
Two faces The Janus-like look of
today?s Italian capitalism
TONY BARBER, PAGE 12
Murdochs to
own less than
5% of Disney
after Fox deal
11
Lufthansa
Ashstead
Glencore
Dollar/yen
Italy 10-yr
govt bond
30-yr US
Treasury
Euro Stoxx
600
Brent oil
1%
?29.86
5.4%
�.49
1.9%
354p
0.3%
�3.15
8bp
1.78%
3bp
2.75%
0.2%
390.70
1.2%
$62.58
Fresh flight path Tui eyes cheaper European
destinations in post-Brexit contingency plans
Miles
Johnson
When debt markets and equity markets are telling different stories, it can be highly profitable to pay attention.
A pronounced example of this can be seen in Greece,
where the performance of the equity market is sharply
lagging behind Greek government bonds that have rallied
on signs that it is finally emerging from its economic
slump. If the debt markets are correct then Greek stocks
should be due a re-rating next year.
The most recent IHS Markit Greece PMI showed its sixth
consecutive improvement in manufacturing conditions,
while employment growth was at its highest level in the
18 years the survey has been carried out. The good news
has been reflected in Greek 10-year government bond
yields, which have fallen from over 7 per cent at the start of
the year to 4.3 per cent. The Athens Composite stock index
is up a comparatively measly 16 per cent year to date, back
to the level it was trading in 2015.
There are some technical factors behind Greece?s stock
market trailing in this way. Many Greek stocks are tiny
in terms of market capitalisation following the crisis,
meaning few bank analysts bother to cover them and large
funds are unable to own them.
Psychologically, many professional investors remain
traumatised from prior experiences investing in Greece
and are not yet willing to take the career risk of distancing
themselves from the safety of the herd. Few are also likely
to bother to look beyond the headline multiples of an
index that is distorted by the heavy weighting of financial
companies.
But for nimble stock pickers, there are opportunities. A
number of Greek industrial stocks have strong balance
sheets and trade at undemanding multiples of free cash
flow. Those looking for a racier, although far riskier, option
can look to Greek bank shares. Not only is banking the
most economically sensitive sector, but these lenders have
very high capital ratios, trade at large discounts to book
value, and operate in a highly consolidated retail banking
market which in future should become profitable.
Either way, if the wider market catches on, betting on
Greece could end up looking less contrarian and more
consensus by the end of 2018.
3 $60bn sale of assets to include Sky
3 Big regulatory hurdles expected
MATTHEW GARRAHAN ? LONDON
Rupert Murdoch and his family will
hold a stake in Walt Disney of less than
5 per cent after the $60bn sale of
21st Century Fox entertainment assets
to the media company, according to
people briefed on the negotiations.
The all-stock deal, which includes the
sale of Fox?s stake in Sky, will be
announced today before the market
opens on Wall Street.
The Murdochs, who own about 17 per
cent of 21st Century Fox but control the
company through voting shares, will not
be represented on the Disney board, the
people said. It is unclear if James
Murdoch, Fox?s chief executive, will join
Disney following the deal ? or if he will
strike out on his own.
The sale by Rupert Murdoch is a landmark in a long and lucrative career that
has upset established media hierarchies
across the globe. He spent decades
assembling the component parts of Fox
but has grown tired of the flat returns
generated by the film industry and is
preparing to renew his focus on news
and sport, according to people familiar
with his thinking.
The structure of the deal follows a
template established by Disney in its
acquisitions of Pixar, Marvel Studios
and Lucasfilm.
Those deals also had high stock
components. ?Disney has created value
for people who have taken Disney stock
if you look at it through a Pixar and
Marvel lens,? said Michael Nathanson,
analyst with MoffettNathanson.
When George Lucas sold his Lucasfilm group to Disney at the end of 2012,
he was paid $2.2bn in cash and received
37.1m Disney shares, according to regu-
latory filings. At the time, Mr Lucas?s
Disney shares were worth $1.9bn, giving
the deal a total value of $4.1bn. The
value of the shares he received has since
more than doubled.
Mr Murdoch and his family will continue to control News Corp, owner of the
Wall Street Journal, The Sun and The
Times newspapers, as well as the
remaining assets of Fox, which include a
broadcast network, Fox News Channel
and sports cable network.
As part of the deal Disney will get the
20th Century Fox movie studio, owner
of the Avatar and X-Men film franchises, as well as international paytelevision brands from Sky in the UK to
Star in India, regional US sports networks and Fox?s stake in the Hulu digital
streaming service.
Donald Trump?s administration
recently sued to block the combination
of AT&T and Time Warner ? a deal that
involves two companies with overlapping businesses. The Disney-Fox combination involves multiple overlapping
businesses, with key regulatory sticking
points likely to be the combination of
the two movie studios and Disney?s
dominant position in sport.
Fox is currently trying to acquire the
shares it does not already own in Sky.
The deal has been held up by regulatory
scrutiny in the UK.
Fox has spent a year trying to push
through its �.7bn takeover of Sky,
which threatened to close its Sky News
channel if the deal was not cleared. If the
Fox purchase of Sky is blocked, Disney
will own 39 per cent of the European
broadcaster but will still be required to
bid for the remaining shares under UK
takeover rules.
Rewriting Hollywood script page 12
Tui wants existing flight agreements extended until a trade deal with the UK is agreed ? Alamy
MURAD AHMED ? LONDON
Tui, the world?s largest holiday
company, is putting in place
?contingency plans? to deal
with the impact of Brexit, to
cover potential issues such as
visa requirements, flying
rights and shifts in demand.
?While we are not able to control the outcome of these negotiations, we are putting contingency plans in place in order to
manage potential disruption to
our operations,? it said as it
reported full-year results.
Fritz Joussen, chief executive, urged UK and EU negotiators to deliver a ?workable solution? for airline operators, saying companies needed clarity
on flying rights across Europe
by next October.
He called on both sides to
extend existing flight agreements until a post-Brexit trade
deal was reached.
Mr Joussen said the company
had begun to increase hotel
capacity in countries such as
Bulgaria and Croatia, anticipating that British customers
would opt for cheaper destinations because of the weak
pound.
Tui reported a 11.7 per cent
rise in turnover to ?18.5bn, on a
constant currency basis, in the
12 months to September 30.
Underlying earnings before
interest, tax and amortisation
were up 12 per cent at ?1.1bn.
Spotify and Deezer call on Brussels
to rein in power of big US tech rivals
MEHREEN KHAN ? BRUSSELS
ALIYA RAM ? LONDON
Futures broker plans to
allow bets against bitcoin
The biggest broker for bitcoin futures
says it will soon allow clients to bet
against the cryptocurrency, in a move
that could change the dynamics of the
nascent market. It followed the futures
posting a premium to cash bitcoin,
suggesting a market out of balance.
Full story i PAGE 18; Lex i PAGE 10
Spotify, Deezer and other European
digital platforms have urged Brussels
to clamp down on big tech groups,
including Apple and Amazon, accusing
their US rivals of unfair competition
that harms the smaller companies that
rely on their services.
In a letter to Jean-Claude Juncker, European Commission president, Daniel Ek,
Spotify?s co-founder, and Hans-Holger
Albrecht, Deezer chief executive, urged
Brussels to ensure ?a level playing field?
by reining in platforms that were
?regularly abusing their advantaged
position?.
The streaming services have joined
forces with European games developers
and publishers to complain they are at a
disadvantage when customers purchase
their apps via Apple?s store as the
iPhone maker has a rival music service.
Spotify says that when users access its
Premium service via the app store, the
iPhone maker takes a 30 per cent cut of
the subscription fee. The European
companies also complain the platforms
do not share full access to user data.
The complaints are part of a campaign by smaller tech companies who
denounce larger rivals for acting as
internet ?gatekeepers?. They come as
the commission prepares to draw up
rules on how big tech groups deal with
developers and vendors that sell goods
and services via their platforms.
The commission?s proposals are
expected to set out clearer rules on how
the groups communicate changes to
their terms and conditions. The laws are
also likely to provide redress mechanisms for companies that are delisted
from sites or pushed down rankings.
In June, the commission slapped a
record ?2.4bn fine on Google for
unfairly favouring its own shopping
service after lobbying from rivals
including TripAdvisor and Foundem, a
UK shopping comparison site whose
complaint triggered the investigation.
The letter, also signed by Foundem,
calls on the commission to come up with
?clear and enforceable obligations that
are a deterrent and prevent unfair businesses practices by platforms?.
Companies / Sectors / People
Companies
21st Century Fox..................................4,12
AB InBev.......................................................12
Air Berlin.......................................................12
Airbus.............................................................14
Alibaba.............................................................2
Alipay................................................................9
Amazon......................................................2,12
Andreessen Horowitz...........................18
Apple.........................................................12,18
Ashtead.........................................................19
Aviva...............................................................19
Bain Capital................................................10
Bank of America Merrill Lynch .4,13
Banque Saudi Fransi...............................4
BlackBerry....................................................18
BlackRock....................................................20
CBS...................................................................12
CME Group..................................................18
Cboe Global Markets............................18
Centrica.........................................................19
Citigroup.........................................................4
Comcast.........................................................12
Commonwealth Bank Australia......14
Corning..........................................................12
Deezer.............................................................11
Deutsche Bank.............................................1
Diageo............................................................12
Dixons Carphone.....................................10
Enav.................................................................12
Eni.....................................................................12
Eon...................................................................13
Etihad Airways..........................................12
Euro Disney..................................................4
ExxonMobil................................................20
Facebook......................................................12
Finisar.............................................................12
First Round.................................................18
Fnac-Darty..................................................10
Four Seasons Hotels...............................4
Glencore........................................................18
Goldman Sachs......................................1,13
Google..............................................................2
Grab...................................................................9
HSBC..................................................................1
Hulu.................................................................12
Innogy.......................................................13,19
Interactive Brokers.................................18
� The Financial Times Limited 2017
JPMorgan..................................................1,13
Katanga Mining........................................18
Kingdom Holding Company...............4
Linde...............................................................14
Lufthansa.....................................................12
Mitsubishi.....................................................12
Morgan Stanley........................................19
National Grid........................................19,19
Netflix.........................................................2,12
Nintendo.......................................................10
Nissan........................................................12,13
Nokia...............................................................18
Npower.....................................................13,19
Numerai.........................................................18
Panasonic.....................................................13
Peel Hunt.....................................................13
Pirelli...............................................................12
Point72...........................................................18
Praxair............................................................14
QuantConnect...........................................18
Quantopian.................................................18
RWE.................................................................13
Renault...........................................................12
SK Hynix......................................................10
Short
View
SSE..............................................................13,19
Severn Trent ......................................10,19
Sports Direct..............................................19
Spotify.........................................................2,11
State Street................................................20
Supercell.........................................................2
Swift..................................................................4
Technogym.................................................12
Tesla..........................................................13,18
Tibra................................................................18
Toshiba ........................................................10
Toyota............................................................13
Tui.....................................................................11
Twitter.............................................................4
Union Square Ventures .....................18
United Utilities..........................................10
Vanguard.....................................................20
Volkswagen...........................................13,18
Walt Disney.................................................12
Western Digital........................................10
YouTube.......................................................12
easyJet...........................................................12
Sectors
Aerospace & Defence.....................12,14
Airlines...........................................................12
Automobiles....................................12,13,18
Banks................................................1,12,13,14
Basic Resources..........................................1
Chemicals.....................................................14
Energy..........................................12,13,19,20
Financial Services..............................13,18
Financials...............................9,10,12,19,20
Industrial Goods.......................................12
Insurance......................................................19
Media..............................................................12
Oil & Gas..................................................1,20
Retail.........................................................10,19
Technology.............................9,10,11,12,18
Travel & Leisure.................................10,11
Utilities.....................................................10,19
People
Alwaleed bin Talal....................................4
Amar, Michael..............................................3
Angel, Steve...............................................14
Belloni, Aldo...............................................14
Broad, Jared...............................................18
Br間ier, Fabrice........................................14
Cohen, Steven...........................................18
Cook, Tim.....................................................12
Corbat, Michael..........................................4
Dimon, Jamie................................................1
Drabble, Geoff...........................................19
Enders, Tom...............................................14
Fawcett, John............................................18
Fine, Steven................................................13
Finucane, Anne.........................................13
Glasenberg, Ivan......................................18
Hindi, Rand...................................................3
James, Seb..................................................10
Joussen, Fritz..............................................11
Ma, Jack..........................................................2
Morgan, Howard......................................18
Niel, Xavier....................................................3
Pandit, Vikram............................................4
Peterffy, Thomas.....................................18
Ranque, Denis...........................................14
Reitzle, Wolfgang....................................14
Rooney, Rob..................................................1
Thompson, Bruce....................................13
Toyoda,, Akio.............................................13
Tsuga, Kazuhiro.......................................13
Tudor Jones, Paul...................................18
Week 50
Greek stocks and bonds
Greek 10-year
bond yield (%)
8
Athex Composite
index
900
7
800
6
700
5
4
600
Dec
2016
2017
Dec
Source: Thomson Reuters Datastream
miles.johnson@ft.com
The Greek equity
market is sharply
lagging behind
government bonds
that have rallied as
the economy has
started to recover
?
12
FINANCIAL TIMES
Thursday 14 December 2017
COMPANIES
INSIDE BUSINESS
Airlines
Lufthansa drops bid for Air Berlin unit
Niki purchase abandoned
after Brussels raises
competition concerns
ROCHELLE TOPLENSKY ? BRUSSELS
TOBIAS BUCK ? BERLIN
Lufthansa has abandoned plans to buy
Air Berlin?s subsidiary Niki after the
European Commission raised concerns
that the deal would lead to higher prices
and less consumer choice.
The airline proposed remedies to
these worries last week and improved
them this week. However, Brussels
found both proposals insufficient,
according to Lufthansa, leading it to
drop its bid for the low-cost Austrian
carrier.
EU officials said it was the company?s
responsibility to propose ?adequate
remedies? to concerns that the takeover
would create monopolies on dozens of
routes and that it would cement the
market leader?s already strong position
at a number of congested airports, making it difficult for competitors to enter.
?It was clear from the start, that
Lufthansa and Air Berlin overlap on a
very significant number of routes, with
clear risks to Austrian, German and
Swiss consumers and to effective competition,? the commission said.
The situation was ?regrettable, in particular because this was not the only
possible outcome since the start of the
sales process?.
Lossmaking Air Berlin filed for insolvency in August after losing the support
of its biggest shareholder Etihad Airways. Germany provided a ?150m
credit facility to keep it in business. In
September, administrators received a
number of bids for parts of the airline
and in October, agreed that Lufthansa
would buy Niki, Air Berlin?s regional
carrier LGW, and 20 aeroplanes for
about ?210m.
The German government, which
played a key role in keeping Air Berlin
afloat in the summer, said Niki was now
destined for insolvency.
?There were and are no alternative
buyers for Niki, despite all kinds of public announcements and despite the
intense efforts made by Air Berlin?s
administrator,? the spokesman for
chancellor Angela Merkel said yesterday. ?The result is the insolvency and
grounding of Niki.?
The government also warned yesterday that part of that credit line ? which
?210m
Price agreed for
Niki, regional
carrier LGW and
20 aeroplanes
?150m
Size of the credit
facility extended by
the state to keep
Air Berlin afloat
was provided through state-owned KfW
development bank ? may now have to
be written off.
?Due to the unexpected loss of funds
from the sale of Niki it is possible that
the KfW credit that was guaranteed by
the state can only be repaid in part,? Ms
Merkel?s spokesman said.
Lufthansa still plans to buy LGW and
yesterday submitted a revised plan to
European regulators that offers to ?give
up numerous slots? to obtain clearance
for the deal by the 21 December deadline.
Air Berlin?s insolvency administrator
will determine the next steps for Niki.
Separately, easyJet agreed to buy the
insolvent airline?s operations at Berlin
Tegel airport. The EU found no competition concerns with that deal and
approved it on Tuesday.
Media. Merger talks
Disney-Fox gear up to rewrite Hollywood script
Streaming services will be left
vulnerable if deal to create TV
and film juggernaut goes ahead
TIM BRADSHAW ? LOS ANGELES
The creation of a new Hollywood juggernaut combining Walt Disney and 21st
Century Fox would change the balance
of power between traditional media and
internet streaming services such as Netflix and Amazon Prime, which would
become more reliant on a single company for television shows and films if
the merger is completed.
Disney?s expected acquisition of Fox?s
entertainment assets, which could be
announced as soon as this week, follows
its decision to end its current movie
licensing deals with Netflix in 2019 to
launch its own ?over the top? streaming
services.
The two media groups are already
shareholders alongside Comcast in
Hulu, one of the biggest rivals to Netflix
and Amazon in TV and film streaming.
Together, a combined Disney and Fox
would own 19 per cent of the most popular TV shows available on Netflix in the
US, making it the second-largest provider of content to the streaming service
after CBS, according to YipitData, which
collects and analyses web data for institutional investors.
Their joint share would exceed that of
Netflix?s own original series, adding
greater urgency to the Silicon Valley
company?s multibillion-dollar investment in TV and movie commissioning.
The streaming company produces or
commissions 15 per cent of TV shows
ranked in IMDB?s top 500, according to
YipitData research, compared with 12
per cent from Fox and 7 per cent from
Disney. At Amazon Prime, the ecommerce group?s video service, Fox and
Disney combined would make up about
9 per cent of the same sample of 500 top
shows.
That would leave both companies
vulnerable to a strategic shift away from
third-party streaming services by
the new Hollywood group but Netflix
would be at the greater risk, says
Michael Sloan, research analyst at YipitData.
?If Disney and Fox come together and
want to monopolise their own content
by moving it all to Hulu, Netflix has a lot
more to lose than Amazon Prime,? he
says.
YipitData analyses terabytes of information scraped from publicly available
websites every day.
For this study, it looked at TV series
that are listed in IMDB?s top 500 shows
and are available on Netflix or Amazon,
?The reality with
big media
companies is that
their interests are
diverse. The idea
that it will be a
bloodbath is far
too simple?
Chat and mouse:
Disney?s merger
talks with 21st
Century Fox will
bring a shift in
the sector?s
balance of
power if they
succeed
Qilai Shen/Bloomberg
and grouped them by the original TV
network that created them.
Netflix has already seen the number
of Fox shows on its platform fall by half
over the past year, from 39 titles in late
2016 to 20 in October 2017, according to
YipitData. This included popular shows
such as The X-Files and Buffy the Vampire
Slayer, which disappeared from its catalogue even as they remained available
on Hulu.
But many of the licensing deals that
Netflix and Amazon have signed last for
several years. Even if a broadcaster
decides to pull its content from a
streaming platform, its shows could still
be available for up to a decade through
different licensing ?windows? agreed in
the original contract.
Some in the streaming industry see
an opportunity from the potential
merger of Fox and Disney, as integration
Most popular content providers for Netflix and Amazon
By top TV shows, Jul 2017 (% share)
Netflix
CBS
Disney/Fox
Netflix
21st Century Fox*
Time Warner*
Comcast*
Disney*
Sony
Amazon
Hulu
30
Prime
Disney and Fox would be
the second-largest content
owner on Netflix and the
number three on Amazon
Prime in the US
20
10
0
10
20
30
*IMDB Top 500 TV shows * Owners in Hulu, which does not produce its own content
Source: YipitData
challenges may distract them from
competing more effectively with online
upstarts. In the meantime, Silicon Valley companies including Apple, Facebook and Google-owned YouTube
are investing heavily in their own content, outside the traditional broadcast
model.
Netflix has said it hopes to produce at
least 50 per cent of its content in-house
or to license it directly from the producer by 2020.
The strategy to reduce its dependence
on providers such as Disney and Fox for
its catalogue began in 2013, as it anticipated growing competitive tensions
with its partners in the traditional
media industry.
The relationship between streaming
platforms and traditional media groups
is complex, with co-productions as well
as competition.
?The reality with big media companies is that their interests are diverse
and become even more complicated in
their international interests,? says Dan
Cryan, analyst at IHS Markit. ?The narrative that it will be a bloodbath is far
too simple to describe a relationship
which is very multi-faceted.?
EUROPE
Tony
Barber
Italian state should
follow the lead of
its bullish SMEs
L
ike the Roman god Janus, who looked to the past
and the future, modern Italian capitalism displays two faces. On the one hand, a dynamic
entrepreneurialism is the hallmark of many private companies. Creative, forward-thinking talents are active in fashion, luxury goods and other sectors
where Italy is consistently strong. They are also active in
promoting newer fields such as financial training services
and high-end gym equipment.
On the other hand, old habits of clumsy state interference persist in certain areas of industry and finance. This is
especially true for companies in which the state no longer
exercises complete control, as it did in the heyday of public
sector ownership between 1945 and 1990, but is still an
influential shareholder.
Time after time, this old-style political and bureaucratic
meddling achieves nothing. It can seem as if the Italian
state is engaged in a conjuring trick, hoping to dupe spectators with illusions of purposeful activity. However, other
state interventions do have a pernicious impact. They
serve as reminders that Italy is not always an easy place to
do business. They deter foreign investment.
Italy?s entrepreneurial spirit is located in the small and
medium-sized companies, often family-owned, that constitute the nation?s economic backbone. Until recently,
even the largest and most profitable of these groups rarely
thought of taking themselves public. During 2017, however, more than 30 companies have launched initial public
offerings on the Milan stock exchange, putting it on course
to be a record year for IPOs in Italy. Next year is expected
to be similarly buoyant.
Milan?s biggest recent flotation is Pirelli, the tyremaker
that relisted in October after a two-year absence from the
bourse. But in many respects it was the least typical IPO.
Pirelli, founded in 1872, relaunched itself on the Mercato
Telematico Azionario, the Milan stock market?s main
branch. By contrast, most of this year?s IPOs involve
younger and smaller companies that have chosen the Aim
Italia segment.
Aim Italia was established in 2012 for SMEs that are
eager to expand operations beyond Italy?s borders and
attract an international
investor base. For long-time
Shareholdings
observers of Italy?s capital
markets, the most interest- would be much
ing feature of these compabetter off in the
nies is how different their
activities are from the banks, hands of real
energy and utility compaprivate investors
nies, fashion groups and
other large groups that dominate the Milan bourse.
Over the past two years, companies that have organised
successful IPOs and enjoyed strong share price rises
include Technogym, which makes top-of-the-range gym
equipment, Alfio Bardolla, which specialises in financial
education courses, and doBank, a debt servicing group.
To some extent, the surge of Italian IPOs reflects the use
of special purpose acquisition companies (SPACs). These
vehicles, which raise capital in an IPO for the purpose of
acquiring other companies, appeared on the Milan bourse
in 2011. When Industrial Stars of Italy 3 floated in October,
it was the 18th SPAC to do so in Milan in the past six years.
Private equity groups ? another more populous breed of
investor than in earlier decades ? are also looking favourably on IPOs as their exit strategy in Italy. Fundamentally,
however, the lively IPO market is a sign that at least some
among the younger generations of Italian business people
have a more positive attitude towards capital markets
than did their forebears, who were often highly sensitive
about family control.
It would be a pleasure to report that the Italian state is
thinking and acting in a similarly enlightened way. Yet
Italy?s reluctance to go ahead with explicit privatisations of
state-owned assets suggests otherwise. Given today?s helpful stock market and macroeconomic conditions, it makes
sense to sell some of the state?s remaining stakes in companies such as Eni, the energy group, and Enav, the air traffic
controller. Yet the government is thinking of selling these
stakes to Cassa dei Depositi e Prestiti, a financing agency in
which the state has an 83 per cent shareholding.
Such sales would raise money for trimming Italy?s public
debt. But they would serve no higher industrial logic. Indirectly, the state would scarcely have shed control at all.
The shareholdings would be much better off in the hands
of real private investors of the kind that are lifting the
Milan bourse to new heights.
tony.barber@ft.com
Automobiles
Technology
Renault buys 40% stake in publishing house
Apple puts $390m behind laser scanner maker
HARRIET AGNEW ? PARIS
Driverless cars means freeing up your
hands and your attention, which in
turns means more time to read glossy
magazines.
That is the logic behind Renault?s decision to buy a 40 per cent stake in Perdriel Group, the publishing house
behind weekly business magazine Challenges.
?Today, French and European commuters spend about two hours in their
car every day,? the French carmaker
said in a statement. With ?the development of the connected driverless vehicle, users will have more time to spend
on other activities while in the car.?
The price of the investment was not
disclosed.
The Renault-Nissan Alliance, the par-
ent group comprising Renault, Nissan
and Mitsubishi, already has the world?s
most advanced self-driving systems fitted to a non-luxury car. The group plans
to invest further in electric and driverless cars.
The Alliance announced in September that it will launch 40 models with
various levels of driverless technology,
including full autonomy. It will also
begin running services, including a fleet
of robo-taxis that do not require drivers,
and a ride-hailing scheme.
Users of the connected
driverless vehicle will
have more time for other
activities while in the car
The publishing industry may not be
the only sector to benefit from changing
trends in automobility. Drinks brands
such as AB InBev and Diageo could be in
for a bonanza. Morgan Stanley has estimated that people spend 600bn hours
in cars globally per year, and 380 hours
drinking per year. For safety reasons,
the two activities should be mutually
exclusive. However, driverless cars and
ride-sharing means more opportunities
to drink before getting the car, and more
opportunities to drink while in the car.
If each person in the drinking population consumed just one extra drink a
year this could add $98bn a year to the
$1.5tn alcoholic beverages market Morgan Stanley estimated.
?Even before widespread autonomous penetration, shared mobility can
enable great alcohol consumption.?
TIM BRADSHAW ? LOS ANGELES
Apple has invested $390m in Finisar, a
maker of laser scanners used in the
iPhone X, as it looks to scale up production of a crucial component in its augmented-reality camera systems.
The investment is the second to be
made from Apple?s $1bn advanced manufacturing fund, after putting $200m
towards Corning?s glass production
facility in May.
ThefundwaslaunchedafterPresident
Donald Trump pressed US companies to
invest in domestic manufacturing jobs
as part of his ?America First? agenda.
Finisar is one of Apple?s two suppliers
of vertical-cavity surface-emitting
lasers. VCSEL technology is used to create the iPhone X?s TrueDepth camera
system, powering its facial-scanning
security system and Animoji function
that enable a user?s expressions to be
superimposed on to animated emoji.
Apple?s $390m will help Finisar to
increase research and development
spending, and production of VCSELs.
Finisar announced last week that it had
acquired a 700,000-square-foot manufacturing facility in Sherman, Texas,
expected to become operational in the
second half of next year.
Extra manufacturing capacity could
allow Apple to include TrueDepth on
more iPhone models or add a second
outward-facing sensor array, allowing
the device?s lasers to scan not just its
user?s face but the world around them.
The technology is seen as crucial to
building out Apple?s vision for augmented reality, where digital images are
placed in the real world. Tim Cook, chief
executive, has predicted that AR could
become a more significant technology
than the smartphone. However, limited
supply of these sensors has been
blamed for holding up production of the
iPhone X.
Gene Munster, a long-time Apple analyst turned venture capitalist at Loup
Ventures, said in a note yesterday that
the investment showed Apple was ?doubling down on AR? by locking up supplies of key components that could
make it ?tough for other smartphone
players to compete longer-term?.
Shares in Finisar jumped 28 per cent
after news of the Apple investment yesterday, giving it a market capitalisation
of $2.8bn. Stock in rival Lumentum,
another supplier of VCSEL technology
to Apple, fell by 9 per cent, bringing its
valuation down to $2.9bn.
?
Thursday 14 December 2017
13
FINANCIAL TIMES
COMPANIES
Banks scale back on plans for City jobs exodus
Brexit will not trigger mass departures say financial services chiefs, as it will take time to build their EU operations
LAURA NOONAN ? LONDON
The predictions of a jobs exodus from
London as a result of Brexit have been
sharply scaled back since banks first
began talking about the impact of the
UK leaving the EU.
However, planning continues at a
feverish pace in the City?s largest financial institutions.
The Financial Times spoke to more
than a dozen senior executives at 15 of
London?s largest international banks
about their planning and how they
expect Brexit negotiations to develop
over the coming months.
They were united on the single most
important thing that they are fighting
for ? ?a watertight transition period
that is legally robust?, to quote a senior
executive at a large US bank.
The executive describes that transition as ?the only way we can responsibly
stop, or adjust the timing of, the implementation of our plans to ensure postMarch 2019 continuation of critical
services to our clients?.
It ?needs to happen very quickly?, he
adds.
The Brexit divorce deal that was
agreed last week paves the way for negotiations on a transition, but banks are
managing their expectations on their
ability to bend things towards their
desired outcome.
?I?m not sure lobbying has had much
impact anyway thus far,? says a second
senior banker at a large US lender, while
a third says that the lobbying has
achieved ?nothing? for the banks in the
18 months since the Brexit vote.
Banks were also chastened by their
experience in the run-up to the referendum where they spent hundreds of
thousands of pounds supporting the
Remain campaign, and publicly warned
on the dangers of a Leave vote.
Several banks say they are planning to
move relatively few people in the immediate aftermath of Brexit because it will
take time to build their EU operations.
They expect to have very small balance sheets when the EU entities begin
handling client business on April 1,
2019, and to be able to run some of the
risk and support functions for those
small EU entities from London. This
requires regulatory approval.
David Davis, Britain?s Brexit secretary, says the UK is aiming at a trade
deal that includes financial services, but
bankers say they cannot base their
plans on that premise.
If there is a hard Brexit that impedes
providers? access to Europe, one bank?s
Emea chief executive said, it was ?inevitable? that the flow of business from the
UK to the EU ?continues, and that the
ECB when they feel the moment is right
will push to have much more market
risk to be run onshore?.
?It?s a real game changer . . . it will
make this day one seem very small,? he
Home truths
The first wave of Brexit departures will not hit the City as hard as previously thought
How to read this chart
0
10
% of each bank?s London staff
20
30
40
50
60
70
80
90
80
90
For each bank ...
FT estimate of actual departures
from London by April 2019
0
10
Difference between FT estimate and
previous announcement
Previous company announcement
(if made)
20
50
30
40
70
7,000
?If you look at the reactions to Brexit ... most of the US banks have talked
about a far greater impact in ... London operations than we have?
Jes Staley, CEO, 26 Oct 2017
6,500
?We?re glad that talking has moved to decision making and political agreement, we now
need to lock that down ... into more precise legal texts. Time is very short indeed?
James Bardrick, UK CEO, 12 Dec 2017
6,000
Goldman Sachs
500
?We will have more staff on the continent [in] Frankfurt and Paris...
Brexit is forcing us to decentralise our activities?
Lloyd Blankfein, CEO, 20 Oct 2017
5,959
Morgan Stanley
100
?We?re in uncharted territory. We?re doing as little as we can do to be as
least disruptive as we can be for our employees and for our clients?
James Gorman, CEO, 16 Nov 2017
5,000
UBS
200
?1,000 [job] moves...is becoming in the last few months more and more unlikely?
Sergio Ermotti, CEO, 27 Oct 2017
5,000
Credit Suisse
250
?We are not panicking ... but ... we are being a bit cautious. We are waiting as we are entering a crucial stage ...?
Tidjane Thiam, CEO, 30 Nov 2017
5,000
HSBC CIB*
900
?[The number of jobs leaving London] may be less than
1,000 employees, but it?s up to 1,000?
Iain Mackay, CFO, 30 Oct 2017
4,500
Bank of America
400
?Who knows ... but [200 jobs is] our plan now, and we feel pretty comfortable with it?
Tom Montag, CEO investment bank, 14 Nov 2017
4,500
BNP Paribas CIB*
150
NatWest Markets
(RBS) 150
?Paris is well placed?
Jean Lemierre, CEO, 15 Sep 2017
?Businesses like ours have to move forward as though we are not going to get any form of deal that would be good for banking?
Ross McEwan, CEO, 8 Dec 2017
?London is our hub ... our European headquarters. We intend for that to continue? David Godfrey, non-executive chairman**, 6 Jul 2017
3,123
?Of course there should be some move of the talents ? in particular salespeople? Nobuyuki Hirano, CEO, 18 Sep 2017
2,100
?[300 jobs] is the worst-case scenario for us? Severin Cabannes, deputy CEO, 2 Nov 2017
2,000
Deutsche Bank previously said 4,000 jobs
could move in a worst case scenario
Barclays
CIB*
150
In July 2017, Citi said its
broker dealer would add
150 jobs in the EU
Citigroup
250
Nomura 75
MUFG 90
Soci閠� G閚閞ale
CIB* 300
0
10
20
30
40
50
60
70
80
The move by the Japanese carmaker
and the world?s biggest supplier of automotive batteries signals a deeper push
into developing electric vehicles.
In a rare public appearance, Akio Toyoda, Toyota?s president, and Kazuhiro
Tsuga, his counterpart at Panasonic,
announced the companies would look
at joining forces to speed up commercialisation of next-generation battery
technologies.
Panasonic is currently the main supplier of electric batteries to Tesla, the US
EV trailblazer. The tie-up could give
Toyota confidence over battery supply.
Mr Toyoda aims to sell 4.5m EVs, which
includes hybrids and is about half of its
overall sales by 2030.
Toyota is seen as a latecomer in the
pure EV market, where rivals such as
Nissan, Tesla and Volkswagen have
taken a lead, and has instead plumped
for hybrid vehicles and hydrogen fuel
cell technology.
If Toyota succeeds in commercialising
solid-state batteries, which are expected
to be safer, cheaper and offer more
capacity than lithium-ion counterparts,
it would go a long way to help Panasonic
retain its industry leading position.
The move highlights the challenge
manufacturers face in securing raw
materials such as lithium and cobalt
that are crucial in the production of EV
batteries. Volkswagen issued a tender in
September for a minimum of five years?
supply of cobalt at a fixed price, but has
yet to strike a deal with any mining
group.
90
2,600
2,270
100
*CIB = Corporate and investment bank **Nomura Europe
Sources: Companies; FT estimates
FT estimates are based on a combination of previously announced figures, interviews with senior bank executives and FT calculations based on industry norms
FT graphic by Alan Smith, Laura Noonan
Energy
Financial services
Toyota and Panasonic
Npower?s woes prompt
launch car battery study Innogy profit warning
Toyota and Panasonic are eyeing a
partnership to develop battery technology for electric cars.
10,480
staff
?We?re in a happier position because our capital
and our bank are already German?
John Cryan, CEO, 18 Sep 2017
Deutsche Bank
350
Automobiles
PETER WELLS ? TOKYO
100
?We will have to move hundreds of people in the short term to be
ready for day one ... then we will look at the longer-term numbers?
Daniel Pinto, CEO investment bank, 3 May 2017
CEO Jamie Dimon warned of up to
4,000 London job losses ahead
of the Brexit vote
JPMorgan
700 jobs moving
60
Height
100 shows
total
number
of staff in
London
Mr Toyoda acknowledged that electrification was the key issue facing the
car industry and that companies could
not solve all their problems themselves.
?Japan does not have any resources
and in order to survive in the era of a
major change we need to develop competitive batteries so that we can provide
stable supply of batteries,? he told a
press conference in Tokyo. ?No longer
can we expect a future by adhering to
our current path.?
Mr Tsuga said Panasonic needed to be
able to make the world?s number one
battery ?in order to survive? but added
that ?the definition of number one will
change with the passage of time?. Referring to the cylindrical lithium-ion batteries the company makes for Tesla, Mr
Tsuga said these were currently the
number one batteries in the world.
?But if you look at the future, where
do we see growth?? he said. ?Or, which
existing car manufacturer will play a
major role in electrification and which
type of battery will they require? Maybe
that will be a different story.?
The feasibility study builds on previous collaboration between Panasonic
and Toyota, with the former supplying
the so-called ?prismatic? rectangular
batteries for the Nagoya-based carmaker?s petrol-electric and plug-in
hybrid vehicles.
Toyota is also thought to be making
inroads with solid-state battery technology, which it hopes to commercialise by
the early 2020s.
Panasonic shares closed 1.2 per cent
higher in Tokyo yesterday ahead of the
announcement, while Toyota was up 0.6
per cent, versus a 0.2 per cent decline
for the Topix benchmark.
See Markets
NATHALIE THOMAS ? LONDON
TOBIAS BUCK ? BERLIN
Shares in German energy group Innogy
dropped more than 13 per cent after it
issued a profit warning, blaming continued ?tight? trading conditions at its
lossmaking UK household supply business Npower.
Innogy is trying to exit the UK retail
energy market and last month agreed a
deal with rival SSE to spin off and combine their British household supply
businesses into a separate, listed
company.
However, UK politicians have called
for the deal to be closely scrutinised by
competition authorities.
Innogy said yesterday that although
Npower had been cutting costs ? saving
about ?150m by the end of the third
quarter ? it no longer expected that
such efficiency measures would be sufficient to ?fully offset earnings shortfalls?
at the UK operation. It pointed to a ?persistently difficult market environment
in the UK retail business?.
Like many of the other ?big six?
energy suppliers in the UK, Npower has
been losing market share to new suppliers offering cheaper deals. Many UK
customers can only be retained by
switching them to deals ?with more
favourable conditions?, Innogy said.
UK policymakers have been putting
pressure on the big electricity and gas
suppliers to move customers off expensive tariffs to cheaper fixed-price ones.
As a result of the problems in the UK
market, Innogy said it was now expecting full-year adjusted earnings before
interest and tax to come in at about
?2.8bn, down from a previous forecast
of ?2.9bn.
adds. ?If we move the substance of the
trading to the continent, you?re then
moving risk management, product controllers, compliance legal heads . . . the
numbers race to a different place.?
For now, banks are urging their planning staff to ignore the political machinations and continue preparations for
?phase one?, the structure they will have
in place immediately after Brexit.
?We?re already in the process of
revamping our governance of legal entities, submitting all of our documents to
regulators, identifying senior managers
who would have to relocate,? says Sally
Dewar, international head of regulatory
affairs at JPMorgan.
Bank of America Merrill Lynch has
announced the team of its new EU entity
in Dublin ? to be led by Bruce Thompson, former group chief financial officer,
and chaired by Anne Finucane, a senior
executive. Other banks are expected to
unveil their EU leadership soon.
The banks that do not already have
property lined up will begin scouting
locations in 2018. Some may even follow
Goldman Sachs? lead in booking school
places for their workers? children.
While many banks no longer see the
first quarter of 2018 as the point of no
return, they will accelerate some
aspects of preparation. ?By the end of
[the first quarter] we will start to have to
take decisions around informing clients,
which then becomes more difficult to
unravel,? says Ms Dewar.
From around April, banks will begin
engaging with clients and ?repapering?
them to new EU entities where appropriate. Some also have to get licences for
their EU entities to trade with
exchanges. Some banks are planning to
move existing client positions to new EU
bases from the middle of next year.
Bankers stress that how they move
business will depend largely on their clients ? how they structure their own
international operations after Brexit
and where they want to do business.
?We?ve also got the small matter of
Mifid II,? the Emea CEO says, referring
to a demanding package of investor
reforms that come into force on January
3. ?We?re having to say to salespeople,
don?t talk to clients yet about Brexit
other than in generalities. Don?t talk
specifically about the move until we?re
finished with Mifid.?
A fifth banker says it is impossible to
know how the world will look three to
five years on. ?The option set is exponential; we haven?t actually done the
planning,? he says. Regulators aren?t
pushing banks for longer-term plans, he
adds. ?They realise we?re all in the foothills here; they recognise that we?re all
living with massive uncertainty.?
Still, the direction of travel is clear. As
the first banker puts it: ?Stuff will go to
New York, more will go to the EU. The
UK has always been the loser in this, it?s
just a matter of how much.?
The group, which was spun out of German energy company RWE last year,
also cited rising costs associated with
digital projects.
Adjusted net earnings for 2017 would
still be above ?1.2bn, Innogy said.
Looking ahead to next year, the company predicted a decline in adjusted
ebit to ?2.7bn and a fall in net profits to
?1.1bn.
Innogy?s warning also affected the
shares of other German power companies such as RWE and Eon, both of
which have been hit in recent years by
Berlin?s long-term switch towards
renewable energy and the country?s
decision to accelerate the phase-out of
nuclear power.
Npower efficiency
measures are no longer
enough to ?fully offset
earnings shortfalls?
RWE, which still has a majority stake
in Innogy, lost more than 12 per cent
yesterday. Shares in Eon ? which also
owns a large UK operation ? fell almost
5 per cent.
Analysts at Bernstein said Innogy?s
guidance for 2018 was now ?materially
below expectations? and implied a dividend cut for that year of 10 per cent
against previous forecasts.
?This was a disappointing update just
one month after the [third-quarter]
results and has highlighted the impact
of low transparency including one-offs
in earnings. It also appears that management were underestimating certain
costs on IT spend post the separation
from RWE,? a research note said.
Banks seek reprieve on
key part of Mifid II rules
PHILIP STAFFORD, LAURA NOONAN AND
HANNAH MURPHY
Banks are pushing for an eleventhhour reprieve on a key part of new
European markets rules because about
a fifth of their clients do not have the
vital tag needed to continue trading.
They are worried some investors could
be shut out of deals from the beginning
of January because thousands of counterparties or corporate issuers will not
have their unique trade identifiers.
In recent weeks the banks, which play
a critical role in the market organising
trades, have undertaken campaigns to
raise awareness among customers
before the arrival of the new Mifid II
rules on January 3.
At the same time they have been
pressing regulators to ease their hardline stance and are growing increasingly
confident authorities are set to grant a
grace period of several months.
The laws ? aimed at increasing market transparency ? mandates tougher
audit trails for deals and will force market participants to have their own
unique 20-character alphanumeric
code, known as a Legal Entity Identifier
(LEI). Codes for the buyer, seller and
issuer will be needed to complete a
trade. Yet of the near-15,000 companies
listed on European exchanges, only twothirds have an LEI, according to data
from Thomson Reuters.
A senior executive at a large investment bank said that ?15 to 20 per cent?
of his clients do not yet have LEIs and
the bank expects the situation to change
little in the next three weeks.
Senior executives at three other
banks said that they were in a similar, or
worse, position. An executive at a fourth
said it would be a ?shit show? if his bank
was forced to refuse to do business with
clients without LEIs from January 3.
The DTCC, a US LEI issuer, began a
fast-track service last week to cope with
added demand. Banks and data providers say it is mainly infrequent traders,
local pension funds and corporate issuers who do not have an LEI. Normally it
takes three to five days to apply for one.
Market participants are hoping a
meeting today of the European Securities Markets Authority (Esma) will give
them breathing space, and a two-month
grace period in which they can retrospectively report deals once the client
has its LEI. Esma declined to comment.
The UK?s Financial Conduct Authority, like Esma, has frequently told the
industry it will take a tough ?no LEI, no
trade? stance for Mifid.
However, three people who have discussed the issue with the FCA say they
detect signs of its position softening.
?They [the FCA] are effectively saying
they?re not in a position to take differing
views [to Esma],? one banker said, adding that he hoped today?s meeting would
yield a ?pragmatic solution?.
Steven Fine, chief executive of City
broker Peel Hunt said only 5 per cent of
its clients did not have LEIs. ?The issue
seems to be from counterparties that
are outside the EU . . . as well as trustees
and other more esoteric ?guardians?.?
Some of the biggest investment banks
route their Asian trading through London ? that means clients in Hong Kong,
Singapore and Tokyo need the codes
because they are trading with an EU
entity. Neil Robson, a lawyer at Katten
Muchin Rosenman, said Asian applications for LEIs are ?lagging behind those
from European entities and US entities?.
?
14
FINANCIAL TIMES
Thursday 14 December 2017
COMPANIES
Banks
Aerospace & defence
CBA admits breaching counter-terror law
Battle brews
at Airbus
over successor
to Enders
Australia lender braced
for more allegations in
money laundering probe
JAMIE SMYTH ? SYDNEY
Commonwealth Bank of Australia has
admitted multiple breaches of money
laundering and counter-terrorism laws
in its response to a court action filed by
Australia?s financial crime fighting
agency.
But the country?s biggest bank by
assets said yesterday that it would test
some of the claims made by the Austral-
ian Transaction Reports and Analysis
Centre in a case that has plunged CBA
into crisis and cost the job of its chief
executive Ian Narev.
?We take our anti-money laundering
and counter-terrorism financing obligations extremely seriously. We deeply
regret any failure to comply with these
obligations. CBA is accountable for
those deficiencies,? said the bank.
Austrac has accused CBA of more
than 50,000 breaches of the law by failing adequately to monitor A$624.7m of
transactions on its network of intelligent deposit machines (IDMs) over
three years.
The financial crime fighting agency
alleges CBA?s IDMs were used by drug
dealers and other criminals to launder
tens of millions in cash.
It alleges that the bank failed adequately to assess the risk posed by the
rollout of the IDMs, which were introduced in 2012 and facilitated anonymous cash and cheque deposits of up to
A$20,000 per transaction. The
machines count the cash and instantly
credit the designated recipient.
The agency also alleged that CBA
failed adequately to report unusual
transactions totalling more than
A$77m, or to monitor suspicious cus-
tomers after it became aware of possible
money laundering.
Legal papers filed by CBA yesterday
show the bank admits failing to file
53,506 transaction reports on time to
the authorities, a ?move that deprived
law enforcement of some additional
intelligence?.
It blames a single systems-related
error for the problem. The bank is calling for these multiple failures to be
treated as a single contravention of the
law. This could dramatically reduce any
penalty imposed on the bank.
CBA also admits that it did not adequately adhere to risk assessment
requirements for IDMs. But it says it
does not accept Austrac?s claim that this
failure amounts to eight separate contraventions of the law. It also denies 83
allegations concerning suspicious transaction reports and 19 allegations regarding customer due diligence.
CBA said Austrac had indicated to the
bank that it planned to file additional
allegations of legal breaches in relation
to its money laundering probe. CBA said
it would amend its legal defence if this
happens, and it would highlight to the
court the efforts it has taken since 2015
to strengthen its compliance to financial
crimes fighting rules.
Chemicals. Industrial gases
Linde chiefs hail deal that keeps brand name alive
German group rejects union
opposition as it enters last lap
of pact with US rival Praxair
PATRICK MCGEE ? MUNICH
Wolfgang Reitzle is fired up. Sitting at
the Munich headquarters of Linde, the
German chemicals group where he is
chairman, he is about to enter the final
board meeting of the year.
Mr Reitzle has spent much of 2017
fighting with labour representatives
who oppose Linde?s pending merger
with US rival Praxair ? an $80bn deal to
create the world?s largest supplier of
industrial gases ? but he is expecting no
drama.
?They know they lost their battle,? he
says. ?In Germany, there?s a saying ? I
don?t know if it will translate ? ?the
ghost is in the box and the box is closed?.?
Beside him is Aldo Belloni, a 35-year
Linde veteran who retired in 2014 but
came back a year ago to be chief executive for the transition. The Italian, who
is as affable as Mr Reitzle is aggressive,
says he is feeling ?satisfied, to a certain
extent relieved? after ?a rocky year for
the merger?.
This feeling of satisfaction is arguably
deserved as the deal appears back on
track. Mr Reitzle and Mr Belloni believe
the merger is in the home straight with
antitrust approval the last hurdle. Hopes
are high that Linde and Praxair will
mergebythesecondhalfofnextyear.
Linde shares have risen 25 per cent
this year, while Praxair is up 30 per cent.
Last week UBS even made Linde its top
pick in the chemicals sector.
?For many months capital markets
had doubts about the deal,? says Arne
Rautenberg, portfolio manager at
Union Investment. ?The strong share
price reaction in the last few weeks
shows that these doubts are gone now.?
A year ago, the deal received unanimous support from Linde?s board, but in
early 2017 union representatives came
out forcefully against it. Final terms had
to be postponed. ?It was very disturbing,? says Mr Belloni.
Unions said the supposed ?merger of
equals? was really a US takeover
because the new headquarters would be
in Connecticut, diminishing the power
of German workers.
J黵gen Wechsler, a representative of
the powerful union IG Metall, called it ?a
merger against the will of the employees?. In April, 2,500 workers across 30
Linde locations protested. Mr Reitzle
Public Notice
PEGGY HOLLINGER ? INDUSTRY EDITOR
A battle is brewing inside Airbus as the
board of the European aircraft maker
prepares to discuss an overhaul of top
management in the wake of a series of
investigations into alleged bribery and
corruption.
Directors meet today for the final board
meeting of the year, where succession
plans for Tom Enders, the German-born
chief executive, and Fabrice Br間ier, the
French chief operating officer, will be on
the agenda.
The two executives are locked in a
power struggle over the board?s plans
for management changes, which are
seen as necessary to win the support of
UK and French authorities for a settlement on claims of corruption in the use
of middlemen to win deals.
An entirely new management team
was a key consideration in the decision
by UK anti-corruption authorities to
allow Rolls-Royce to strike a �2m settlement deal last January.
Airbus?s board is hoping to stagger
changes at the top to maintain stability
at a challenging time operationally for
the group, according to two people with
knowledge of the situation.
Mr Enders? contract is not expected to
be renewed for a third term when his
mandate ends in March 2019.
However, an internal battle is
Tom Enders himself
said that reports of his
?demise? were ?premature
and exaggerated?
Close to a deal: from left, Aldo Belloni and Wolfgang Reitzle, of the German chemicals group Linde, with Steve Angel, chief executive of Praxair
responded by saying he was willing to
push the merger through with his casting vote. Battle lines were drawn.
At Linde?s shareholders meeting in
May, investors who wanted to see terms
of the deal instead vented frustration
with how it was orchestrated. Winfried
Mathes, fund manager at Deka, called
Linde?s communication of the plans a
Industrial gas groups
2016 global market share (%)
Asia
Europe
South America
US
?catastrophe? and likened Mr Reitzle to
a puppet master.
But the Linde board approved the
deal in June and, although it was not
unanimous, Mr Reitzle did not have to
use his double-counting vote. Two
weeks ago, 92 per cent of shareholders
voted in favour.
Once the merger is complete, Mr Reit-
Linde/Praxair stock
performance
Share price (rebased)
150
150
140
100
130
Praxair
120
50
110
Linde
Others
Linde/
Air
Air
Praxair Liquide Products
0
Jan 2016
100
2017 Dec
Sources: RJE estimates, companies; Thomson Reuters Datastream
90
zle and Steve Angel, the Praxair chief
executive, plan to form a new holding
company based in Ireland and seek
$1.2bn in synergies within three years.
For unions, the move in headquarters
is among the biggest threats, as it will
rob them of co-determination ? the law
in Germany that gives workers equal
footing with management on major
decision at board level.
Mr Reitzle argues that this makes
sense given how global Linde is. Just 8
per cent of Linde revenue and 11 per
cent of employees are German, he notes,
but because of co-determination an
undue amount of weight was given to
?very provincial, emotional arguments?
from the unions. ?Labour organisations
don?t understand our company from the
inside and don?t understand the business model,? he says.
Mr Reitzle insists he is in favour of
workers? rights, but he describes Linde
as a ?British, American and international corporation? hampered by
parochial rules. ?I?m a big fighter for
co-determination in a plant, in a local
organisation.?
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At stake, arguably, is not just the
future of Linde, but Mr Reitzle?s legacy.
He is credited with building Linde into a
global player during his CEO years from
2003-14, in which Linde was transformed from an unwieldy manufacturer
worth ?3bn into a focused gas supplier
worth ?30bn.
Mr Reitzle and Mr Belloni feel confident that a German brand is becoming
the biggest player in an important sector. ?Find me one other merger in the
world, a 50:50 merger, where only one
company [name] survives,? Mr Reitzle
says. ?Our brand survives. We are not
Praxair-Linde, like you see with
LafargeHolcim, DaimlerChrysler.?
He adds: ?A few years from now, a new
journalist will Wikipidea ?Linde? and
find a company that was founded in
1879 by Carl von Linde.?
That may not calm the nerves of
workers, who have worried about ?an
American-style takeover? that guts
workers? rights. But with Mr Reitzle
staying on as chairman, the onus will be
on him to show the preservation of the
brand name is more than symbolic.
developing over the fate of Mr Br間ier,
the chief operating officer who ran Airbus?s biggest division for five years from
2012. People close to Mr Br間ier insisted
that he had no intention of quitting the
group, despite reports in French media
that he would leave early next year. ?He
is doing his job. He considers he has no
reason to leave,? one person said.
Mr Br間ier told the Financial Times
he was ?surprised? by suggestions he
would leave. ?My top priority is to meet
Airbus objectives, which is to deliver
more than 700 aircraft this year, while
ensuring customer satisfaction, creating
value for Airbus, its employees and its
shareholders,? he said.
Denis Ranque, Airbus chairman, said
no decision concerning management of
the group had been taken. He said the
board would not communicate its
agenda and that its deliberations were
secret. ?But that does not mean that we
are not active,? he said.
Nevertheless, people close to Mr
Enders said that the chief operating
officer was more likely to leave before
the chief executive. Mr Enders himself
told Reuters yesterday in Toulouse that
reports of his ?demise? were ?premature and exaggerated?.
The board has not yet decided on the
extent of management change needed,
or the timeline, said one person with
knowledge of the situation. Some directors are hoping to limit the change to Mr
Enders, whose mandate naturally ends
in less than 18 months.
These issues were to be discussed at
the board meeting today, although no
final decision was expected. Initially the
plan had been to decide the details of
any changes next year.
15
FINANCIAL TIMES
Thursday 14 December 2017
MARKET DATA
WORLD MARKETS AT A GLANCE
FT.COM/MARKETSDATA
Change during previous day?s trading (%)
S&P 500
Nasdaq Composite
0.27%
Dow Jones Ind
0.44%
0.64%
FTSE 100
FTSE Eurofirst 300
Nikkei
Hang Seng
-0.05%
-0.30%
-0.47%
FTSE All World $
1.49%
$ per ?
0.24%
$ per �
0.256%
0.300%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS
EUROPE
Index
Nov 14 - S&P 500
All World
New York
Index
Nov 14 - Dec 13
S&P/TSX COMP
All World
Toronto
2,671.40
Day 0.27%
Month 3.45%
Year 18.37%
Day 0.34%
New York
IPC
Nasdaq Composite
Year 5.09%
London
Day -0.05%
Month 1.17%
Year 7.66%
FTSE Eurofirst 300
Month 2.09%
Year 27.34%
Dow Jones Industrial
Day 0.87%
New York
Month 0.23%
Year 2.65%
Bovespa
S鉶 Paulo
24,661.09
Day 0.64%
Month 5.29%
Country
Index
Argentina
Australia
Merval
All Ordinaries
S&P/ASX 200
S&P/ASX 200 Res
ATX
BEL 20
BEL Mid
Bovespa
S&P/TSX 60
S&P/TSX Comp
S&P/TSX Div Met & Min
IGPA Gen
FTSE A200
FTSE B35
Shanghai A
Shanghai B
Shanghai Comp
Shenzhen A
Shenzhen B
COLCAP
CROBEX
Year 24.57%
Latest
Previous
27434.18
6103.10
6021.80
3834.80
3304.94
4002.21
6688.82
73778.82
962.33
16169.14
798.07
25798.23
10579.19
9000.71
3459.27
337.38
3303.04
2003.70
1157.35
1470.10
1857.53
27341.58
6093.10
6013.20
3837.80
3337.97
4033.58
6725.89
73813.53
959.20
16114.03
769.54
25334.27
10482.65
8988.96
3435.94
336.84
3280.81
1988.35
1147.14
1470.12
1862.44
Month 1.20%
Year 8.89%
CAC 40
Country
Month 1.93%
Index
Year 24.62%
Latest
Previous
Country
Month 0.35%
Year 13.42%
Latest
Previous
CSE M&P Gen
69.00
69.81
Italy
FTSE Italia All-Share
24746.38
PX
1059.92
1059.51
FTSE Italia Mid Cap
42892.24
OMXC Copenahgen 20
1014.70
1017.58
FTSE MIB
22400.19
EGX 30
14590.20
14426.75
Japan
2nd Section
7110.42
Austria
OMX Tallinn
1187.36
1196.21
Nikkei 225
22758.07
Belgium
OMX Helsinki General
9469.68
9424.62
S&P Topix 150
1463.18
CAC 40
5399.45
5427.18
Topix
1810.84
Brazil
SBF 120
4304.48
4324.76
Jordan
Amman SE
2131.52
Canada
Germany
M-DAX
26182.94
26283.47
Kenya
NSE 20
3731.79
TecDAX
2536.11
2517.25
Kuwait
KSX Market Index
6237.87
XETRA Dax
13125.64
13183.53
Latvia
OMX Riga
1022.33
Chile
Greece
Athens Gen
749.76
738.44
Lithuania
OMX Vilnius
470.67
China
FTSE/ASE 20
1957.50
1925.14
Luxembourg
LuxX
1659.43
Hong Kong
Hang Seng
29222.10
28793.88
Malaysia
FTSE Bursa KLCI
1737.66
HS China Enterprise
11519.79
11312.57
Mexico
IPC
48114.14
HSCC Red Chip
4278.14
4251.25
Morocco
MASI
12459.82
Hungary
Bux
38228.16
38018.26
Netherlands
AEX
550.56
India
BSE Sensex
33053.04
33227.99
AEX All Share
819.31
Nifty 500
9101.80
9156.50
New Zealand
NZX 50
8284.58
Colombia
Indonesia
Jakarta Comp
6054.60
6032.37
Nigeria
SE All Share
38924.63
Croatia
Ireland
ISEQ Overall
7014.27
7020.84
Norway
Oslo All Share
888.78
Israel
Tel Aviv 125
1328.28
1325.79
Pakistan
KSE 100
38819.65
(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.
25088.08
43298.62
22727.32
7077.01
22866.17
1466.06
1815.08
2129.35
3750.53
6197.58
1018.46
656.84
1678.35
1729.57
47699.04
12332.14
552.87
822.86
8280.81
38913.99
893.07
38525.11
Index
Cyprus
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Country
stock
traded m's
16.9
12.6
12.4
12.0
10.9
8.5
6.5
6.4
6.4
5.7
close
price
172.90
1164.00
342.30
188.25
178.70
29.34
85.56
37.70
42.33
294.67
Day's
change
1.20
-1.08
1.27
-2.59
1.74
0.02
-0.02
-0.41
0.47
4.73
Ups
Mercadolibre
Centurylink
Jd.com
Netease
Hasbro
Close
price
Day's
change
Day's
chng%
311.02
16.51
40.31
358.72
95.68
15.90
0.81
1.75
14.20
3.66
5.39
5.13
4.53
4.12
3.97
Downs
Acuity Brands
Ralph Lauren
Twenty-first Century Fox
Twenty-first Century Fox
F5 Networks
162.60
96.82
33.01
32.61
131.97
-11.63
-3.32
-1.10
-0.99
-3.52
-6.68
-3.32
-3.21
-2.95
-2.60
Apple
Amazon.com
Tesla
Nvidia
Facebook
Bank Of America
Microsoft
At&t
Micron Technology
Boeing (the)
BIGGEST MOVERS
Based on the constituents of the S&P500 and the Nasdaq 100 index
Oil Brent $ Sep
Gold $
0.54%
0.14%
Month -0.17%
Philippines
Poland
Portugal
Manila Comp
Wig
PSI 20
PSI General
BET Index
Micex Index
RTX
TADAWUL All Share Index
FTSE Straits Times
SAX
SBI TOP
FTSE/JSE All Share
FTSE/JSE Res 20
FTSE/JSE Top 40
Kospi
Kospi 200
IBEX 35
CSE All Share
OMX Stockholm 30
OMX Stockholm AS
SMI Index
Romania
Russia
Saudi-Arabia
Singapore
Slovakia
Slovenia
South Africa
South Korea
Spain
Sri Lanka
Sweden
Switzerland
Day 0.68%
8359.61
62414.95
5383.69
2980.32
7536.34
2131.94
1141.50
7100.46
3468.77
325.16
784.42
57344.41
35869.17
51151.27
2480.55
326.18
10260.50
6352.77
1619.82
579.76
9394.55
Country
Day 0.09%
Shanghai
8334.06
62532.46
5398.01
2990.06
7591.68
2160.75
1149.88
7144.74
3465.54
323.72
783.68
57523.62
36043.50
51312.31
2461.00
324.07
10288.30
6360.36
1623.75
581.01
9361.41
Taiwan
Thailand
Turkey
UAE
UK
USA
Venezuela
Vietnam
Month -3.78%
Weighted Pr
Bangkok SET
BIST 100
Abu Dhabi General Index
FT 30
FTSE 100
FTSE 4Good UK
FTSE All Share
FTSE techMARK 100
DJ Composite
DJ Industrial
DJ Transport
DJ Utilities
Nasdaq 100
Nasdaq Cmp
NYSE Comp
S&P 500
Wilshire 5000
IBC
VNI
Year 17.50%
Mumbai
33,053.04
32,941.87
Day -0.53%
Previous
10470.70
1706.93
109049.50
4381.80
3030.80
7496.51
6689.49
4111.96
4583.74
8311.13
24661.09
10461.34
750.13
6404.70
6892.82
12738.25
2671.40
27715.99
1279.43
924.40
Month 1.42%
BSE Sensex
Year 4.76%
Latest
Singapore
3,468.77
Year 30.26%
Index
Year 22.36%
3,399.09
3,459.27
Previous
2,480.55
Month -2.45%
FTSE Straits Times
3,591.69
Year 18.98%
Latest
Seoul
Day 0.79%
Hong Kong
Shanghai Composite
All World
2,526.64
Year 18.81%
Month 0.35%
Index
Nov 14 - Dec 13
Kospi
29,222.10
Day 1.49%
Milan
Index
Month 0.34%
29,152.12
22,400.19
Day -1.44%
All World
Tokyo
Hang Seng
Year 11.69%
FTSE MIB
Country
Cross-Border
10443.28
1702.17
109156.47
4356.30
2989.30
7500.41
6691.09
4114.09
4586.72
8257.46
24504.80
10367.91
748.31
6383.65
6862.32
12697.78
2664.11
27619.84
1335.06
927.25
Month -0.79%
Index
DJ Global Titans ($)
Euro Stoxx 50 (Eur)
Euronext 100 ID
FTSE 4Good Global ($)
FTSE All World ($)
FTSE E300
FTSE Eurotop 100
FTSE Global 100 ($)
FTSE Gold Min ($)
FTSE Latibex Top (Eur)
FTSE Multinationals ($)
FTSE World ($)
FTSEurofirst 100 (Eur)
FTSEurofirst 80 (Eur)
MSCI ACWI Fr ($)
MSCI All World ($)
MSCI Europe (Eur)
MSCI Pacific ($)
S&P Euro (Eur)
S&P Europe 350 (Eur)
S&P Global 1200 ($)
Stoxx 50 (Eur)
Year 24.66%
Latest
Previous
300.18
3583.50
1045.20
6640.71
335.48
1538.28
3002.99
1658.03
1389.13
4107.90
1921.10
593.20
4347.92
5000.35
506.31
2083.43
1623.13
2807.45
1662.02
1581.74
2333.18
3205.18
299.65
3600.35
1051.71
6628.38
334.68
1542.94
3011.03
1653.51
1399.69
4068.80
1919.58
591.90
4364.61
5028.04
506.23
2081.24
1614.93
2808.83
1670.54
1585.96
2328.09
3208.97
UK MARKET WINNERS AND LOSERS
STOCK MARKET: BIGGEST MOVERS
AMERICA
ACTIVE STOCKS
Month 1.66%
22,297.08
Day -0.51%
Day -0.47%
10,260.50
9,990.40
Day -0.27%
Index
22,380.99
Madrid
5,399.45
5,315.58
Day -0.05%
-0.114%
22,758.07
Year NaN%
Ibex 35
Paris
73,778.82
72,165.64
23,439.70
Month 0.98%
1,538.28
Day -0.30%
-0.572%
Nov 14 - Dec 13
Nikkei 225
Frankfurt
13,125.64
Day -0.44%
Europe
1,510.08
Day 0.44%
All World
13,033.48
48,114.14
48,028.30
Index
Nov 14 - Dec 13
Xetra Dax
7,500.41
Mexico City
6,892.82
6,757.60
All World
7,415.18
Month 0.89%
� per ?
ASIA
Index
Nov 14 - Dec 13
FTSE 100
16,169.14
15,913.13
2,584.84
� per $
LONDON
ACTIVE STOCKS
EURO MARKETS
ACTIVE STOCKS
stock
traded m's
Hsbc Holdings
361.8
British American Tobacco
294.9
Bp
254.5
Glencore
231.8
Rio Tinto
208.7
Glaxosmithkline
185.2
Anglo American
182.6
Royal Dutch Shell
166.6
Diageo
162.3
Royal Dutch Shell
154.3
close
price
768.80
5029.00
505.40
354.00
3547.00
1314.00
1389.50
2405.00
2643.00
2436.00
Day's
change
12.53
1.15
-3.30
2.21
-5.25
4.74
3.71
-18.25
-6.95
-11.75
BIGGEST MOVERS
Ups
Serco
Dixons Carphone
Dignity
Restaurant
Diploma
Close
price
Day's
change
Day's
chng%
101.40
181.60
1676.00
287.70
1190.00
6.47
10.59
72.80
10.90
34.94
6.79
6.33
4.55
3.94
3.04
Ups
Ericsson , Telefonab. L M Ser. B
Gemalto
Thyssenkrupp Ag O.n.
Inditex
Hennes & Mauritz Ab , H & M Ser. B
Downs
Ashtead
Sirius Minerals
Centrica
Cairn Energy
Woodford Patient Capital Trust
1949.00
23.40
139.50
210.80
82.00
-86.31
-0.89
-4.00
-5.89
-2.20
-4.19
-3.66
-2.76
-2.71
-2.61
Downs
Rwe Ag St O.n.
Colruyt
E.on Se Na O.n.
Ses
Unicredit
Unicredit
Abertis Infr
Rwe Ag St O.n.
Total
Intesa Sanpaolo
Telefonica
Novartis N
Nestle N
E.on Se Na O.n.
Inditex
stock
traded m's
622.5
489.7
488.1
353.7
335.4
333.9
326.0
314.4
310.3
285.2
close
price
16.60
18.72
18.07
47.37
2.87
8.35
72.10
73.73
9.22
31.29
Day's
change
-0.81
-0.12
-2.72
-0.41
-0.03
-0.05
0.26
0.21
-0.48
0.53
Close
price
Day's
change
Day's
chng%
5.67
47.00
23.84
31.29
20.36
0.26
1.40
0.45
0.53
0.27
4.74
3.06
1.92
1.72
1.35
18.07
41.39
9.22
14.16
16.60
-2.72
-3.38
-0.48
-0.71
-0.81
-13.06
-7.54
-4.92
-4.74
-4.65
BIGGEST MOVERS
Based on the constituents of the FTSE 350 index
Based on the constituents of the FTSEurofirst 300 Eurozone index
TOKYO
ACTIVE STOCKS
stock
close
traded m's
price
Mitsubishi Ufj Fin,.
1120.0
830.00
Sumitomo Mitsui Fin,.
754.1 4902.00
Mizuho Fin,.
369.1
207.30
Sumco
328.6 2726.00
Toyota Motor
323.4 7080.00
Softbank .
304.9 9365.00
Tokyo Electron
301.8 20605.00
Sony
275.5 5033.00
Panasonic
256.9 1637.50
Fanuc
236.1 26440.00
Day's
change
17.20
75.00
1.10
-150.00
39.00
-79.00
-600.00
-11.00
20.00
-335.00
BIGGEST MOVERS
Close
price
Day's
change
Day's
chng%
1174.00
7850.00
6310.00
6864.00
830.00
27.00
180.00
140.00
149.00
17.20
2.35
2.35
2.27
2.22
2.12
Downs
Sumco
2726.00
Dena Co.,
2319.00
Showa Denko K.k.
3935.00
Shin-etsu Chemical Co., 11495.00
Tokai Carbon Co.,
1128.00
-150.00
-96.00
-155.00
-425.00
-40.00
-5.22
-3.98
-3.79
-3.57
-3.42
Ups
Thb Shizuoka Bank,
Familymart Co.,
Konami
Eisai Co.,
Mitsubishi Ufj Fin,.
Based on the constituents of the Nikkei 225 index
FTSE 100
Winners
Barclays
Berkeley Holdings (the)
Hsbc Holdings
Glencore
Hammerson
Hargreaves Lansdown
Astrazeneca
Bt
Mediclinic Int
Worldpay
Pearson
Lloyds Banking
Dec 13
price(p)
%Chg
week
%Chg
ytd
Dec 13
price(p)
%Chg
week
%Chg
ytd
-9.3
46.1
17.2
26.1
-8.9
35.5
10.7
59.5
-8.6
7.9
FTSE 250
Winners
Ladbrokes Coral
Hikma Pharmaceuticals
Serco
Petrofac
Dixons Carphone
Ferrexpo
Kaz Minerals
Fdm (holdings)
Drax
888 Holdings
William Hill
Tullow Oil
203.80
4121.00
768.80
354.00
525.00
1693.00
4925.00
268.00
606.00
430.60
750.00
67.36
6.7
6.5
6.1
5.0
4.7
4.5
4.3
4.2
4.1
4.1
4.0
3.9
Losers
Centrica
Morrison (wm) Supermarkets
Ferguson
Whitbread
Marks And Spencer
Smith & Nephew
Sainsbury (j)
Bunzl
Easyjet
Ashtead
Intertek
Direct Line Insurance
139.50
214.50
5265.00
3893.00
311.30
1300.00
238.10
2049.00
1427.00
1949.00
5110.00
361.20
-5.1
-3.7
-2.6
-2.4
-2.4
-1.8
-1.7
-1.6
-1.2
-1.1
-1.1
-1.0
Dec 13
price(p)
%Chg
week
%Chg
ytd
47.6
-49.8
94.3
69.3
27.1
6.5
-
FTSE SmallCap
Winners
Xafinity
Foxtons
Games Workshop
Interserve
Dialight
Robert Walters
Carillion
Hollywood Bowl
Jpmorgan Chinese Investment Trust
Biotech Growth Trust (the)
Motorpoint
Lonmin
170.70
1060.00
101.40
455.30
181.60
262.00
763.00
947.50
270.20
277.20
309.60
190.00
26.2
11.3
11.3
8.5
8.3
7.8
7.5
6.5
6.2
6.1
6.0
5.9
-7.4
6.2
2.4
6.6
-4.6
-2.6
42.9
24.9
45.2
-2.2
Losers
Sirius Minerals
Saga
Nostrum Oil & Gas
Inmarsat
Talktalk Telecom
Investec
Stagecoach
Smith (ds)
Renishaw
Britvic
Aggreko
Spirax-sarco Eng
23.40
127.00
315.20
440.90
135.70
474.70
169.50
519.50
4960.00
787.50
791.00
5510.00
-99.0
-8.8
-7.1
-6.0
-5.5
-4.8
-4.6
-4.4
-4.2
-3.6
-3.0
-3.0
Dec 13
price(p)
%Chg
week
%Chg
ytd
78.6
23.1
55.2
11.3
81.1
-
Industry Sectors
Winners
Industrial Metals
Banks
Fixed Line Telecommunication
Pharmaceuticals & Biotech.
Mining
Household Goods
Software & Computer Services
Real Estate Investment Trusts
Mobile Telecommunications
Media
Oil & Gas Producers
General Financial
183.00
80.00
2322.00
71.00
721.50
597.00
16.00
204.00
306.00
785.00
227.75
63.75
16.1
14.3
12.4
11.0
10.9
9.6
9.2
8.8
6.8
6.6
6.4
6.3
3519.22
4611.65
3081.70
12435.06
16923.66
18179.56
2349.96
3003.67
5067.53
7558.90
8741.34
10791.15
7.1
5.4
3.7
3.6
3.3
3.0
2.9
2.8
2.5
2.1
2.0
1.8
56.7
11.6
-7.5
14.5
13.6
24.1
3.3
12.3
-3.6
3.0
16.0
-11.6
26.3
96.1
39.5
31.9
Losers
Debenhams
Cambian
Mothercare
Findel
Gem Diamonds
Allied Minds
Treatt
Carclo
Schroder Eur Real Estate Investment Trust
De La Rue
Ao World
Huntsworth
33.00
173.00
64.25
194.00
72.00
141.50
458.00
124.75
107.50
619.00
111.25
81.75
-10.4
-10.3
-9.1
-8.9
-6.5
-6.0
-5.8
-5.5
-5.4
-4.8
-4.4
-4.3
41.2
3.7
81.3
-8.1
-1.6
0.7
-
Losers
Oil Equipment & Services
Gas Water & Multiutilities
General Industrials
Electronic & Electrical Equip.
Tobacco
General Retailers
Automobiles & Parts
Beverages
Industrial Engineering
Aerospace & Defense
Nonlife Insurance
Food Producers
12144.53
5146.64
6210.71
6528.33
54235.33
2476.84
6976.79
21066.09
12055.98
4824.60
3059.95
8334.70
-4.6
-0.8
-0.8
-0.4
-0.2
-0.1
-0.1
0.0
0.0
0.1
0.1
0.2
12.6
32.8
2.6
-4.4
26.0
17.7
4.1
11.2
3.8
Based on last week's performance. ?Price at suspension.
CURRENCIES
Dec 13
Argentina
Australia
Bahrain
Bolivia
Brazil
Canada
Chile
China
Colombia
Costa Rica
Czech Republic
Denmark
Egypt
Hong Kong
Hungary
India
Currency
Argentine Peso
Australian Dollar
Bahrainin Dinar
Bolivian Boliviano
Brazilian Real
Canadian Dollar
Chilean Peso
Chinese Yuan
Colombian Peso
Costa Rican Colon
Czech Koruna
Danish Krone
Egyptian Pound
Hong Kong Dollar
Hungarian Forint
Indian Rupee
DOLLAR
Closing
Day's
Mid
Change
17.3130
0.0780
1.3136
-0.0106
0.3770
-0.0001
6.9100
3.2987
-0.0294
1.2854
-0.0023
646.7200
-8.3000
6.6203
-0.0008
3010.8550
-17.2350
565.7750
-0.0300
21.8036
-0.0550
6.3307
-0.0151
17.8740
0.0475
7.8054
-0.0014
267.2592
-0.5272
64.4500
0.0400
EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
20.3558
0.1400
23.1327
0.1732
1.5445
-0.0088
1.7552
-0.0089
0.4433
0.0009
0.5037
0.0014
8.1244
0.0193
9.2328
0.0277
3.8785
-0.0252
4.4076
-0.0260
1.5113
0.0009
1.7175
0.0021
760.3819
-7.9249 864.1138
-8.4668
7.7838
0.0176
8.8457
0.0254
3540.0172 -11.7863 4022.9485
-10.9020
665.2107
1.5487 755.9593
2.2259
25.6356
-0.0035
29.1328
0.0141
7.4433
0.0000
8.4588
0.0052
21.0154
0.1058
23.8823
0.1349
9.1772
0.0203
10.4291
0.0295
314.2304
0.1299 357.0979
0.3681
75.7772
0.2274
86.1147
0.3114
Dec 13
Indonesia
Israel
Japan
..One Month
..Three Month
..One Year
Kenya
Kuwait
Malaysia
Mexico
New Zealand
Nigeria
Norway
Pakistan
Peru
Philippines
Currency
Indonesian Rupiah
Israeli Shekel
Japanese Yen
Kenyan Shilling
Kuwaiti Dinar
Malaysian Ringgit
Mexican Peson
New Zealand Dollar
Nigerian Naira
Norwegian Krone
Pakistani Rupee
Peruvian Nuevo Sol
Philippine Peso
DOLLAR
Closing
Mid
13587.5000
3.5360
113.0450
113.0447
113.0444
113.0424
103.1500
0.3023
4.0865
19.1138
1.4297
359.5000
8.3733
109.6000
3.2325
50.4900
Day's
Change
20.0000
-0.0134
-0.6500
-0.6506
-0.6512
-0.6552
0.0500
0.0001
0.0080
-0.0777
-0.0134
-1.0000
0.0120
0.1000
-0.0020
-0.0070
EURO
Closing
Mid
15975.5383
4.1574
132.9128
132.9129
132.9129
132.9131
121.2787
0.3554
4.8047
22.4730
1.6810
422.6826
9.8449
128.8623
3.8006
59.3637
POUND
Day's
Closing
Day's
Change
Mid
Change
61.4995 18154.9159
81.0480
-0.0058
4.7246
-0.0036
-0.4459 151.0449
-0.4132
-0.4458 151.0448
-0.4133
-0.4457 151.0446
-0.4137
-0.4454 151.0448
-0.4147
0.3474 137.8237
0.4797
0.0009
0.4039
0.0013
0.0208
5.4602
0.0270
-0.0377
25.5388
-0.0270
-0.0117
1.9103
-0.0122
-0.1665 480.3453
0.1076
0.0375
11.1879
0.0495
0.4241 146.4418
0.5721
0.0067
4.3191
0.0103
0.1331
67.4621
0.1929
Dec 13
Currency
Poland
Polish Zloty
Romania
Romanian Leu
Russia
Russian Ruble
Saudi Arabia
Saudi Riyal
Singapore
Singapore Dollar
South Africa
South African Rand
South Korea
South Korean Won
Sweden
Swedish Krona
Switzerland
Swiss Franc
Taiwan
New Taiwan Dollar
Thailand
Thai Baht
Tunisia
Tunisian Dinar
Turkey
Turkish Lira
United Arab Emirates
UAE Dirham
United Kingdom
Pound Sterling
..One Month
DOLLAR
Closing
Mid
3.5848
3.9394
58.7650
3.7503
1.3504
13.4775
1090.7000
8.4544
0.9891
30.0255
32.5800
2.5165
3.8277
3.6730
0.7484
0.7487
Day's
Change
-0.0104
-0.0100
-0.4550
0.0002
-0.0032
-0.2150
-1.6000
0.0092
-0.0034
0.0090
-0.0150
-0.0057
-0.0217
-0.0001
-0.0023
-0.0022
EURO
Closing
Mid
4.2148
4.6318
69.0930
4.4094
1.5877
15.8462
1282.3921
9.9403
1.1630
35.3025
38.3060
2.9587
4.5004
4.3185
0.8800
0.8799
POUND
Day's
Closing
Day's
Change
Mid
Change
-0.0021
4.7898
0.0006
-0.0008
5.2636
0.0024
-0.3692
78.5187
-0.3708
0.0107
5.0110
0.0152
0.0000
1.8043
0.0011
-0.2145
18.0079
-0.2324
1.1769 1457.3370
2.2368
0.0345
11.2963
0.0461
-0.0012
1.3217
-0.0006
0.0946
40.1185
0.1322
0.0736
43.5317
0.1105
0.0004
3.3624
0.0026
-0.0147
5.1144
-0.0135
0.0102
4.9077
0.0146
-0.0005
-0.0005
-
Dec 13
..Three Month
..One Year
United States
..One Month
..Three Month
..One Year
Venezuela
Vietnam
European Union
..One Month
..Three Month
..One Year
Currency
United States Dollar
Venezuelan Bolivar Fuerte
Vietnamese Dong
Euro
DOLLAR
Closing
Mid
0.7490
0.7503
10.5411
22712.5000
0.8505
0.8501
0.8497
0.8475
Day's
Change
-0.0022
-0.0022
0.2322
2.0000
-0.0020
-0.0020
-0.0021
-0.0021
EURO
Closing
Mid
0.8797
0.8789
1.1758
1.1754
1.1750
1.1727
12.3937
26704.2663
-
POUND
Day's
Closing
Day's
Change
Mid
Change
-0.0005
-0.0005
0.0028
1.3361
0.0040
-0.1564
1.3364
0.0041
-0.1564
1.3367
0.0041
-0.1564
1.3381
0.0041
0.3018
14.0844
0.3515
65.9428 30347.3558
93.6482
1.1364
0.0007
1.1363
0.0007
1.1362
0.0007
1.1354
0.0007
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
Produced in conjunction with the Institute and Faculty of Actuaries
� Strlg Day's
Euro
� Strlg
� Strlg
Year
Div
Dec 13 chge%
Index
Dec 12
Dec 11
ago yield% Cover
FTSE 100 (100)
7496.51 -0.05 6639.05 7500.41 7453.48 6949.19 3.86 1.18
FTSE 250 (250)
20061.40 -0.06 17766.76 20073.02 20064.62 17682.38 2.72 1.99
FTSE 250 ex Inv Co (203)
21494.89 -0.04 19036.29 21504.37 21501.32 18948.74 2.79 1.76
FTSE 350 (350)
4165.37 -0.05 3688.93 4167.58 4145.65 3828.55 3.67 1.28
FTSE 350 ex Investment Trusts (302) 4128.79 -0.05 3656.53 4130.86 4108.67 3800.54 3.71 1.23
FTSE 350 Higher Yield (115)
3843.13 -0.18 3403.55 3849.95 3815.87 3660.22 5.06 1.03
FTSE 350 Lower Yield (235)
4093.91
0.08 3625.64 4090.50 4085.10 3605.32 2.14 1.94
FTSE SmallCap (284)
5770.98 -0.02 5110.89 5771.90 5747.33 5034.86 2.97 2.51
FTSE SmallCap ex Inv Co (153)
5010.26 -0.10 4437.18 5015.44 4994.41 4485.12 3.16 1.18
FTSE All-Share (634)
4111.96 -0.05 3641.63 4114.09 4092.59 3772.28 3.64 1.32
FTSE All-Share ex Inv Co (455)
4051.70 -0.05 3588.27 4053.78 4032.10 3727.54 3.70 1.23
FTSE All-Share ex Multinationals (568) 1245.12
0.08
913.94 1244.07 1241.01 1130.80 3.23 1.73
FTSE Fledgling (95)
10738.71
0.05 9510.41 10733.60 10727.02 8725.30 2.68 2.31
FTSE Fledgling ex Inv Co (46)
15343.14
0.07 13588.18 15332.42 15330.01 11523.09 3.29 0.81
FTSE All-Small (379)
4023.03 -0.01 3562.87 4023.55 4007.15 3497.54 2.95 2.50
FTSE All-Small ex Inv Co (199)
3766.93 -0.10 3336.06 3770.58 3755.34 3349.78 3.16 1.17
FTSE AIM All-Share (797)
1016.57 -0.33
900.29 1019.91 1017.20
825.35 1.33 1.09
FTSE Sector Indices
Oil & Gas (14)
9105.60
Oil & Gas Producers (9)
8776.65
Oil Equipment Services & Distribution (5)12813.81
Basic Materials (30)
5753.20
Chemicals (9)
14719.86
Forestry & Paper (1)
20263.09
Industrial Metals & Mining (2)
3790.76
Mining (18)
16184.72
Industrials (110)
5380.82
Construction & Materials (15)
6621.83
Aerospace & Defense (9)
5014.98
General Industrials (7)
5051.02
Electronic & Electrical Equipment (11) 8100.80
Industrial Engineering (12)
13270.46
Industrial Transportation (6)
5178.25
Support Services (50)
7723.57
Consumer Goods (42)
22072.85
Automobiles & Parts (1)
7012.54
Beverages (5)
21141.99
Food Producers (11)
8421.79
Household Goods & Home Construction (16)15224.64
Leisure Goods (2)
9183.48
Personal Goods (5)
31862.34
Tobacco (2)
54235.42
Health Care (22)
9252.12
Health Care Equipment & Services (10) 7741.87
Pharmaceuticals & Biotechnology (12)12356.76
Consumer Services (95)
5071.84
Food & Drug Retailers (7)
3351.15
General Retailers (28)
2418.23
Media (22)
7664.73
Travel & Leisure (38)
9635.86
Telecommunications (6)
3317.93
Fixed Line Telecommunications (4) 3149.29
Mobile Telecommunications (2)
5059.86
Utilities (7)
7297.45
Electricity (2)
7683.69
Gas Water & Multiutilities (5)
6801.82
Financials (292)
5306.93
Banks (12)
4554.34
Nonlife Insurance (9)
3498.36
Life Insurance/Assurance (9)
8727.38
Real Estate Investment & Services (19) 2710.57
Real Estate Investment Trusts (34) 2721.94
General Financial (30)
9230.59
Equity Investment Instruments (179) 9932.86
Non Financials (342)
4794.66
Technology (16)
2263.11
Software & Computer Services (13) 2609.51
Technology Hardware & Equipment (3) 1866.63
-0.94
-0.85
-4.93
0.63
-0.29
0.23
1.08
0.75
-0.22
-0.43
0.96
-0.62
-0.25
-0.49
0.03
-0.47
-0.29
-1.09
-0.24
0.46
-0.14
3.14
-0.34
-0.48
-0.54
-0.60
-0.53
0.48
1.06
0.48
0.33
0.41
-0.67
-0.74
-0.64
-1.46
-0.92
-1.61
0.56
1.04
0.45
-0.08
0.21
0.18
0.98
-0.06
-0.27
-0.04
-0.01
-0.62
8064.10
7772.77
11348.16
5095.14
13036.19
17945.38
3357.17
14333.50
4765.36
5864.42
4441.36
4473.28
7174.22
11752.57
4585.96
6840.14
19548.14
6210.44
18723.76
7458.50
13483.24
8133.06
28217.90
48031.93
8193.86
6856.35
10943.38
4491.72
2967.84
2141.63
6788.03
8533.70
2938.43
2789.07
4481.11
6462.76
6804.82
6023.82
4699.92
4033.41
3098.21
7729.14
2400.53
2410.60
8174.79
8796.73
4246.24
2004.25
2311.03
1653.13
9191.79
8851.94
13477.66
5717.00
14762.25
20216.07
3750.10
16063.83
5392.66
6650.66
4967.50
5082.70
8121.17
13335.48
5176.45
7759.83
22137.40
7090.09
21192.56
8383.63
15245.91
8904.20
31971.31
54495.34
9302.19
7788.37
12422.64
5047.84
3316.05
2406.57
7639.50
9596.35
3340.21
3172.81
5092.36
7405.49
7754.74
6912.95
5277.22
4507.55
3482.81
8734.49
2704.77
2717.04
9141.37
9939.08
4807.82
2263.91
2609.69
1878.27
9028.09
8689.57
13566.75
5732.99
14743.87
20298.35
3786.65
16113.86
5384.22
6712.47
4966.21
5066.23
8080.46
13375.65
5156.25
7721.61
22037.24
7104.19
21130.94
8330.64
15259.08
8617.26
31868.11
54021.28
9211.62
7762.59
12291.02
5061.45
3353.58
2417.20
7631.31
9618.77
3319.03
3164.57
5052.77
7332.83
7713.01
6836.74
5254.60
4473.51
3464.07
8751.19
2712.33
2713.19
9087.83
9913.15
4781.06
2240.55
2581.70
1874.57
8496.70
8119.64
16607.99
5082.84
12696.41
18217.97
2744.91
14370.51
4811.05
6572.76
4807.53
4434.44
6207.69
11117.40
4573.64
6729.42
19109.54
7506.05
16285.05
7885.19
13047.61
5451.24
24648.86
51328.67
9460.06
7189.50
12790.05
4743.12
3177.54
2478.60
7692.02
8146.97
3355.85
4208.98
4486.97
8300.06
8844.20
7716.00
4705.02
4098.92
3041.29
7738.48
2459.41
2573.21
7737.00
8546.01
4452.97
1842.92
2077.72
1925.04
P/E
ratio
21.92
18.41
20.33
21.23
21.89
19.18
24.06
13.43
26.74
20.79
21.97
17.93
16.12
37.36
13.54
27.03
69.02
X/D
adj
284.39
514.84
560.47
149.19
149.47
188.15
85.41
147.52
132.33
145.72
145.89
37.69
263.67
409.95
102.63
99.56
12.37
Total
Return
6352.00
14742.44
16118.17
7084.96
3618.30
6887.90
4525.13
8366.29
7634.76
7070.65
3608.28
2259.65
20368.31
28438.82
7486.72
7272.68
1125.40
5.62 0.75 23.76 509.21 8676.40
5.64 0.76 23.24 495.31 8661.50
4.66 -0.07 -308.65 417.21 10095.06
3.29 1.74 17.42 189.08 5979.09
2.01 1.84 27.17 313.75 13310.68
2.88 3.15 11.03 582.72 22291.39
5.54 2.22
8.13 211.81 3528.27
3.42 1.68 17.43 549.05 8809.47
2.36 1.34 31.68 119.18 5610.35
2.32 0.53 80.73 162.07 7097.75
2.43 0.91 45.18 106.48 5428.14
2.81 1.45 24.49 136.09 5830.51
1.62 2.08 29.55 114.39 7444.29
2.05 1.66 29.30 271.22 16332.50
4.01 1.33 18.77 201.82 4738.51
2.25 1.61 27.64 160.57 8109.71
3.21 1.38 22.64 693.46 16548.41
3.02 3.52
9.42 211.50 6825.25
2.34 1.64 26.04 494.83 15131.32
1.99 2.45 20.48 127.33 7310.11
3.41 2.03 14.41 516.83 10958.63
4.43 1.00 22.49 315.27 8530.15
2.79 0.29 125.88 860.97 21810.43
3.86 1.16 22.26 2096.90 35615.60
3.78 0.82 32.08 348.91 7249.90
1.37 2.18 33.56 111.73 6756.19
4.11 0.76 31.89 502.66 8643.71
2.79 1.94 18.54 130.28 4823.90
1.52 2.59 25.42
51.17 3953.41
3.28 1.91 15.99
77.21 2815.15
3.15 1.87 16.95 208.83 4790.43
2.69 1.90 19.59 241.92 9246.09
5.75 0.16 109.97 174.86 3841.87
5.71 0.97 18.01 125.92 2940.79
5.76 -0.15 -115.59 291.47 5295.14
5.70 1.32 13.27 403.70 8545.37
6.57 1.58
9.61 505.19 11453.49
5.47 1.23 14.82 356.83 7959.80
3.46 1.85 15.65 179.38 5004.16
3.87 1.31 19.78 174.29 3437.41
3.02 1.74 19.03 104.16 6251.57
3.65 1.68 16.36 323.17 8685.46
2.49 2.19 18.30
60.27 7319.83
3.57 2.08 13.43 101.48 3464.03
3.37 1.73 17.10 265.94 10740.60
2.42 4.26
9.68 227.64 5498.59
3.71 1.14 23.62 172.75 7221.01
2.12 0.96 49.12
43.92 2937.32
2.09 0.89 53.96
51.99 3579.10
2.70 2.15 17.22
25.98 2204.16
8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
16.00 High/day Low/day
Hourly movements
FTSE 100
7495.38 7495.52 7503.37 7505.25 7501.42 7496.01 7504.27 7504.53 7508.55 7510.56 7494.21
FTSE 250
20080.19 20078.34 20068.83 20036.76 20047.27 20057.81 20070.09 20078.67 20077.12 20105.03 20023.67
FTSE SmallCap
5776.07 5770.73 5773.42 5774.46 5772.55 5772.31 5770.26 5769.57 5767.32 5776.33 5762.95
FTSE All-Share
4112.23 4112.10 4115.28 4115.05 4113.68 4111.66 4115.64 4116.00 4117.68 4119.11 4111.10
Time of FTSE 100 Day's high:13:37:00 Day's Low09:29:00 FTSE 100 2010/11 High: 7562.28(06/11/2017) Low: 7099.15(31/01/2017)
Time of FTSE All-Share Day's high:13:37:00 Day's Low10:30:00 FTSE 100 2010/11 High: 4156.95(03/11/2017) Low: 3858.26(31/01/2017)
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
Amount
Latest
Issue
paid
renun.
price
up
date
High
Low
Stock
There are currently no rights offers by any companies listed on the LSE.
FTSE SECTORS: LEADERS & LAGGARDS
FT 30 INDEX
Dec 13 Dec 12 Dec 11 Dec 08 Dec 07 Yr Ago
High
Low Year to date percentage changes
FT 30
3030.80 2989.30 3028.00 3011.00 2993.10
0.00 3092.80 2508.90 Leisure Goods
54.34
FT 30 Div Yield
1.65
1.68
1.66
1.67
1.68
0.00
3.93
2.74 Industrial Metals &
50.52
P/E Ratio net
27.01
26.60
26.87
26.66
26.52
0.00
19.44
14.26 Electronic & Elec Eq
29.88
FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35
Beverages
25.76
FT 30 hourly changes
Personal Goods
24.46
8
9
10
11
12
13
14
15
16
High
Low Software & Comp Serv
22.51
2989.3 3000.1 3007.5 3012.3 3007 3011.8 3013 3020.4 3029.8 3035.4 2984.9 Technology
19.55
FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30
Industrial Eng
18.82
Financial Services
13.70
Household Goods & Ho
13.59
Equity Invest Instr
13.02
Travel
&
Leisure
12.56
Dec 12 Dec 11 Mnth Ago
Dec 13 Dec 12 Mnth Ago
Chemicals
11.80
Australia
93.34
93.03
94.87 Sweden
76.91
76.16
77.87 Mobile Telecomms
11.77
Canada
90.76
90.87
92.22 Switzerland
151.98 151.62 152.27 Basic Materials
11.53
Denmark
110.21 110.53 109.74 UK
78.35
78.32
77.95 FTSE SmallCap Index
11.49
Japan
133.13 133.24 133.73 USA
100.90 100.58 100.62 Mining
11.47
New Zealand
114.59 114.23 114.57 Euro
94.57
94.98
94.08
Norway
85.13
84.82
87.86
Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100.
Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk
FX: EFFECTIVE INDICES
Consumer Goods
Support Services
FTSE 250 Index
Nonlife Insurance
Industrials
Financials
Life Insurance
Industrial Transport
Real Est Invest & Se
Banks
FTSE All{HY-}Share Index
Health Care Eq & Srv
Food & Drug Retailer
FTSE 100 Index
NON FINANCIALS Index
Aerospace & Defense
Food Producers
Consumer Services
+or-
Real Est Invest & Tr
Forestry & Paper
Tobacco
Oil & Gas Producers
Oil & Gas
Telecommunications
Construct & Material
General Retailers
Media
Tech Hardware & Eq
Health Care
Pharmace & Biotech
Automobiles & Parts
Gas Water & Multi
Utilities
Electricity
Oil Equipment & Serv
Fixed Line Telecomms
2.84
1.68
1.33
0.43
-0.16
-1.90
-3.38
-3.89
-4.75
-6.39
-7.99
-9.46
-9.95
-14.31
-14.68
-16.22
-20.25
-25.46
FTSE GLOBAL EQUITY INDEX SERIES
Dec 12
Regions & countries
FTSE Global All Cap
FTSE Global Large Cap
FTSE Global Mid Cap
FTSE Global Small Cap
FTSE All-World
FTSE World
FTSE Global All Cap ex UNITED KINGDOM In
FTSE Global All Cap ex USA
FTSE Global All Cap ex JAPAN
FTSE Global All Cap ex Eurozone
FTSE Developed
FTSE Developed All Cap
FTSE Developed Large Cap
FTSE Developed Europe Large Cap
FTSE Developed Europe Mid Cap
FTSE Dev Europe Small Cap
FTSE North America Large Cap
FTSE North America Mid Cap
FTSE North America Small Cap
FTSE North America
FTSE Developed ex North America
FTSE Japan Large Cap
FTSE Japan Mid Cap
FTSE Global wi JAPAN Small Cap
FTSE Japan
FTSE Asia Pacific Large Cap ex Japan
FTSE Asia Pacific Mid Cap ex Japan
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
FTSE Emerging Large Cap
FTSE Emerging Mid Cap
FTSE Emerging Small Cap
FTSE Emerging Europe
FTSE Latin America All Cap
FTSE Middle East and Africa All Cap
FTSE Global wi UNITED KINGDOM All Cap In
FTSE Global wi USA All Cap
FTSE Europe All Cap
FTSE Eurozone All Cap
FTSE RAFI All World 3000
FTSE RAFI US 1000
FTSE EDHEC-Risk Efficient All-World
FTSE EDHEC-Risk Efficient Developed Europe
Oil & Gas
No of
US $
stocks indices
7778 573.23
1452 505.45
1707 767.70
4619 806.96
3159 334.68
2586 591.90
7455 595.75
5903 513.65
6470 584.85
7124 591.06
2133 538.38
5659 565.69
918 497.17
235 380.46
321 619.85
701 872.14
285 571.66
396 828.21
1406 847.70
681 380.75
1452 271.16
186 392.39
316 651.71
806 723.27
502 166.86
545 721.16
453 930.33
1458 588.79
998 568.17
2119 770.36
534 734.07
492 924.77
1093 799.65
121 377.46
238 890.65
239 692.25
323 354.74
1875 655.42
1450 447.31
654 446.00
3009 6962.71
987 11463.52
3159 398.28
556 329.77
144 377.32
Day
%
0.0
0.1
-0.2
-0.3
0.0
0.1
0.0
-0.1
0.0
0.0
0.1
0.1
0.2
0.2
-0.1
-0.2
0.2
-0.1
-0.3
0.1
0.0
-0.2
-0.2
-0.3
-0.2
-0.3
-0.4
-0.5
-0.3
-0.6
-0.7
-0.6
-0.5
0.2
-0.1
-1.5
0.3
0.1
0.1
-0.1
0.1
0.2
-0.1
-0.1
0.2
Mth
%
1.7
1.7
1.9
1.5
1.8
2.0
1.7
0.2
1.9
1.8
2.1
2.0
2.1
1.5
1.2
1.0
3.0
2.8
2.1
2.9
0.7
0.1
1.2
0.9
0.3
-1.4
-1.1
-0.6
-1.4
-1.1
-1.1
-1.1
-0.6
0.1
-1.3
2.0
1.6
3.1
1.3
1.4
1.8
3.9
2.0
1.4
-0.6
YTD
Total
%
retn
19.7 822.98
20.1 744.77
19.2 1044.44
17.4 1062.26
20.0 507.67
19.6 1205.33
20.0 841.94
20.9 790.40
19.4 847.59
19.0 832.50
19.7 779.24
19.4 808.70
19.8 730.82
19.2 643.43
25.9 937.01
25.7 1276.02
19.5 785.46
15.3 1057.45
13.6 1050.44
18.8 535.29
21.2 448.55
20.4 512.32
26.2 814.99
29.6 936.10
21.6 244.36
27.2 1145.70
22.3 1416.37
21.1 881.71
26.7 958.72
23.0 1163.03
24.0 1116.13
16.3 1385.84
23.4 1159.40
12.3 599.76
16.0 1382.75
5.2 1092.87
13.9 604.23
18.6 873.33
20.6 730.12
26.0 732.47
16.6 9300.02
13.0 15186.88
19.0 559.07
23.2 507.11
0.5 618.04
YTD Gr Div Dec 12
No of
US $
Day
Mth
YTD
Total
YTD Gr Div
% Yield Sectors
stocks indices
%
%
%
retn
% Yield
22.4
2.2 Oil & Gas Producers
108 363.07
0.3
0.3
3.3 607.86
7.0
3.5
23.1
2.4 Oil Equipment & Services
27 303.54
-0.4
-0.4 -13.2 445.59 -11.4
3.2
21.5
2.0 Basic Materials
258 519.51
0.0
0.0
23.1 800.90
26.2
2.5
19.5
1.8 Chemicals
122 791.86
-0.1
-0.1
25.6 1225.55
28.6
2.3
22.8
2.3 Forestry & Paper
16 293.26
-0.6
-0.6
23.1 502.73
26.9
3.1
22.4
2.3 Industrial Metals & Mining
68 450.06
0.4
0.4
24.3 690.49
27.0
2.4
22.7
2.2 Mining
52 591.74
-0.2
-0.2
15.3 912.12
18.9
3.0
24.3
2.7 Industrials
556 407.18
-0.1
-0.1
22.9 590.91
25.3
2.0
22.2
2.3 Construction & Materials
115 544.44
-0.3
-0.3
18.2 824.81
20.5
2.0
21.6
2.2 Aerospace & Defense
27 756.00
0.4
0.4
33.8 1087.54
36.5
1.8
22.5
2.3 General Industrials
58 237.79
-0.1
-0.1
1.0 373.02
3.3
2.6
22.0
2.2 Electronic & Electrical Equipment
72 457.28
-0.4
-0.4
33.0 607.91
35.2
1.5
22.6
2.3 Industrial Engineering
103 835.03
-0.3
-0.3
32.5 1194.08
35.2
1.9
23.2
3.3 Industrial Transportation
101 703.45
0.1
0.1
24.9 1022.17
27.6
2.1
29.1
2.5 Support Services
80 374.86
0.1
0.1
27.0 520.23
29.3
1.7
28.7
2.4 Consumer Goods
439 502.74
-0.1
-0.1
20.2 750.26
23.0
2.3
21.9
2.0 Automobiles & Parts
108 441.13
-0.1
-0.1
19.9 636.88
23.0
2.5
17.2
1.6 Beverages
45 659.43
-0.1
-0.1
19.5 1000.27
22.4
2.4
15.1
1.5 Food Producers
111 627.94
0.1
0.1
10.3 960.75
12.7
2.3
21.1
1.9 Household Goods & Home Construction
49 461.95
-0.2
-0.2
14.3 685.02
17.1
2.5
24.6
2.8 Leisure Goods
33 239.58
0.2
0.2
49.7 316.18
51.5
1.3
22.8
1.9 Personal Goods
82 742.51
-0.4
-0.4
28.4 1048.28
30.9
1.9
28.2
1.5 Tobacco
11 1408.53
0.5
0.5
11.2 2940.59
14.4
3.8
31.8
1.6 Health Care
189 501.94
0.4
0.4
18.7 727.99
21.0
1.9
24.0
1.8 Health Care Equipment & Services
73 879.49
0.1
0.1
27.8 1029.19
29.1
1.0
30.8
2.7 Pharmaceuticals & Biotechnology
116 351.91
0.5
0.5
15.0 534.33
17.7
2.4
25.4
2.8 Consumer Services
402 464.67
-0.3
-0.3
17.8 624.86
19.7
1.6
24.0
2.5 Food & Drug Retailers
59 286.95
-0.3
-0.3
1.5 403.62
3.6
2.2
30.2
2.7 General Retailers
131 677.29
-0.4
-0.4
24.4 885.85
26.3
1.3
26.4
2.7 Media
82 336.93
0.1
0.1
10.8 454.17
12.5
1.7
27.5
2.6 Travel & Leisure
130 471.96
-0.4
-0.4
24.0 642.21
26.2
1.7
19.5
3.1 Telecommunication
92 165.30
0.7
0.7
2.6 314.98
6.8
4.2
26.6
2.5 Fixed Line Telecommuniations
40 134.10
1.6
1.6
-4.6 281.62
-0.3
4.8
16.7
4.1 Mobile Telecommunications
52 181.58
-0.3
-0.3
13.6 310.17
17.4
3.4
18.6
2.5 Utilities
168 281.93
-0.9
-0.9
14.4 555.45
18.3
3.5
8.3
3.1 Electricity
110 310.45
-1.0
-1.0
14.1 604.19
17.9
3.4
18.2
3.7 Gas Water & Multiutilities
58 294.49
-0.6
-0.6
14.7 596.56
18.9
3.7
20.8
1.8 Financials
716 255.31
0.4
0.4
19.7 421.66
23.1
2.8
24.4
3.1 Banks
248 228.08
0.5
0.5
18.4 405.42
22.3
3.2
29.5
2.8 Nonlife Insurance
72 272.06
0.4
0.4
17.3 397.36
20.0
2.2
19.9
2.8 Life Insurance
53 246.86
-0.3
-0.3
23.2 399.22
26.9
2.7
15.5
2.3 Financial Services
156 306.26
0.6
0.6
27.1 424.77
29.4
1.7
21.4
2.1 Technology
195 267.05
-0.5
-0.5
37.6 329.25
39.6
1.4
26.3
2.6 Software & Computer Services
96 461.45
-0.4
-0.4
38.7 540.56
40.0
0.9
3.9
3.5 Technology Hardware & Equipment
99 200.64
-0.6
-0.6
36.3 258.15
39.2
1.9
Alternative Energy
9
88.70
-1.0
-1.0
-3.5 120.27
-2.5
2.1
Real Estate Investment & Services
110 357.22
0.0
0.0
29.4 601.64
32.9
2.5
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/
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
(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
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
Group companies and is used by FTSE International Limited under licence.
UK COMPANY RESULTS
closing
Price p
11.45
11.29
10.60
10.27
9.18
9.07
8.66
8.50
8.19
7.73
4.92
4.52
4.15
3.52
3.48
3.43
3.38
3.00
FTSE 100 SUMMARY
Company
Albion Enterprise VCT
BlackRock Frontiers Investment Trust $
Invesco Income Growth Trust
Palace Capital
RhythmOne $
Seneca Global Income & Growth Trust
Standard Life Private Equity Trust
FTSE 100
Closing Day's
Price Change FTSE 100
3I Group PLC
Admiral Group PLC
Anglo American PLC
Antofagasta PLC
Ashtead Group PLC
Associated British Foods PLC
Astrazeneca PLC
Aviva PLC
Babcock International Group PLC
Bae Systems PLC
Barclays PLC
Barratt Developments PLC
Berkeley Group Holdings (The) PLC
Bhp Billiton PLC
BP PLC
British American Tobacco PLC
British Land Company PLC
Bt Group PLC
Bunzl PLC
Burberry Group PLC
Carnival PLC
Centrica PLC
Coca-Cola Hbc AG
Compass Group PLC
Convatec Group PLC
Crh PLC
Croda International PLC
Dcc PLC
Diageo PLC
Direct Line Insurance Group PLC
Easyjet PLC
Experian PLC
Ferguson PLC
Fresnillo PLC
G4S PLC
Gkn PLC
Glaxosmithkline PLC
Glencore PLC
Hammerson PLC
Hargreaves Lansdown PLC
HSBC Holdings PLC
Imperial Brands PLC
Informa PLC
Intercontinental Hotels Group PLC
International Consolidated Airlines Group S.A.
Intertek Group PLC
Itv PLC
Johnson Matthey PLC
Kingfisher PLC
Land Securities Group PLC
Legal & General Group PLC
887.00
1919
1389.5
919.50
1949
2903
4925
501.50
684.50
565.50
203.80
632.00
4121
1384
505.40
5029
661.50
268.00
2049
1727
4848
139.50
2324
1532
209.30
2583
4250
7070
2643
361.20
1427
1605
5265
1301
251.60
298.40
1314
354.00
525.00
1693
768.80
3067.5
740.00
4489
635.00
5110
164.10
3036
332.30
948.00
266.10
11.50
20.00
9.00
9.00
-111.00
14.00
-10.00
-10.50
10.00
3.20
-0.50
21.00
1.50
-5.60
-15.00
7.50
-1.70
-14.00
1.00
-51.00
-5.30
-7.00
22.00
-3.00
-13.00
-2.00
50.00
-5.50
2.50
-12.00
1.00
14.00
-1.80
-3.30
-0.50
6.55
3.00
72.00
11.70
-36.50
-3.00
44.00
2.00
80.00
-0.30
-25.00
-0.60
-2.00
0.20
Closing Day's
Price Change
Lloyds Banking Group PLC
London Stock Exchange Group PLC
Marks And Spencer Group PLC
Mediclinic International PLC
Merlin Entertainments PLC
Micro Focus International PLC
Mondi PLC
Morrison (Wm) Supermarkets PLC
National Grid PLC
Next PLC
Nmc Health PLC
Old Mutual PLC
Paddy Power Betfair PLC
Pearson PLC
Persimmon PLC
Prudential PLC
Randgold Resources LD
Reckitt Benckiser Group PLC
Relx PLC
Rentokil Initial PLC
Rio Tinto PLC
Rolls-Royce Holdings PLC
Royal Bank Of Scotland Group PLC
Royal Dutch Shell PLC
Royal Dutch Shell PLC
Rsa Insurance Group PLC
Sage Group PLC
Sainsbury (J) PLC
Schroders PLC
Scottish Mortgage Investment Trust PLC
Segro PLC
Severn Trent PLC
Shire PLC
Sky PLC
Smith & Nephew PLC
Smiths Group PLC
Smurfit Kappa Group PLC
Sse PLC
St. James's Place PLC
Standard Chartered PLC
Standard Life Aberdeen PLC
Taylor Wimpey PLC
Tesco PLC
Tui AG
Unilever PLC
United Utilities Group PLC
Vodafone Group PLC
Whitbread PLC
Worldpay Group PLC
Wpp PLC
67.36
3831
311.30
606.00
366.60
2480
1724
214.50
874.40
4404
2900
201.60
8570
750.00
2647
1836.5
6795
6747
1738
310.80
3547
837.50
280.90
2436
2405
598.50
785.00
238.10
3485
441.10
560.50
2086
3677.5
1009
1300
1465
2337
1313
1167
774.00
427.50
201.40
208.40
1413
4191
811.50
230.90
3893
430.60
1363
-0.04
-12.00
-0.60
3.50
3.00
-5.00
4.00
3.00
-9.90
11.00
2.00
1.80
125.00
2.00
-5.00
8.50
50.00
-16.00
23.00
-0.50
6.00
1.50
-12.00
-21.00
1.00
4.00
3.50
54.00
-1.40
-1.50
-34.00
-83.00
-3.00
-12.00
-15.00
-14.00
-11.00
4.00
1.10
3.20
2.75
4.00
-17.00
-12.50
-1.45
34.00
-1.30
-6.00
UK STOCK MARKET TRADING DATA
Dec 13
Dec 12
Dec 11
Dec 08
Dec 07
Yr Ago
SEAQ Bargains
9.00
9.00
8506.00
8506.00
8506.00
8396.00
Order Book Turnover (m)
864.88
415.48
457.65
457.65
457.65
538.42
Order Book Bargains
1032927.00 923834.00 1095255.00 1095255.00 1095255.00 1100594.00
Order Book Shares Traded (m)
1938.00
1620.00
1762.00
1762.00
1762.00
1683.00
Total Equity Turnover ()
9344.87
6327.21
5418.00
5418.00
5418.00
6674.85
Total Mkt Bargains
1242293.00 1090931.00 1263206.00 1263206.00 1263206.00 1271161.00
Total Shares Traded (m)
5378.00
4872.00
5056.00
5056.00
5056.00
4902.00
? Excluding intra-market and overseas turnover. *UK only total at 6pm. ? UK plus intra-market turnover. (u) Unavaliable.
(c) Market closed.
All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
liable for any loss arising from the reliance on or use of the listed information.
For all queries e-mail ft.reader.enquiries@morningstar.com
Data provided by Morningstar | www.morningstar.co.uk
UK RECENT EQUITY ISSUES
Int
Pre
Int
Int
Int
Int
Pre
Turnover
0.56
0.316
7.138
114.528
7.076
66.771
Pre-tax
0.305
0.001
24.316
68.238
15.515
3.714
3.91
4.859
10.296L
8.286L
6.024
4.215
81.432 107.424
Figures in . Earnings shown basic. Figures in light text are for corresponding period year earlier.
For more information on dividend payments visit www.ft.com/marketsdata
EPS(p)
0.002
0.354
6.34
17.3
0.166L
10.13
52.76
0.53
0.147
26.5
13.4
0.269L
15.1
68.74
Div(p)
2.5
5.64
2.3
9.5
1.58
6
2.5
4.189
2.2
9
1.52
3.6
Pay day
Aug 31
Feb 9
Dec 29
Dec 29
Dec 15
Jan 31
5
8.3
6.3
19
3.16
12
Total
4.986
6.8
5.979
17.951
3.032
5.4
Issue
date
12/06
11/27
11/27
11/23
11/22
11/20
11/16
11/15
11/09
Issue
price(p)
230.00
50.00
160.00
170.00
134.00
59.00
180.00
10.00
3.90
Sector
AIM
AIM
AIM
AIM
AIM
AIM
Stock
code
SBRE
BKS
KEYS
CPC
TENG
BOKU
BAKK
LAHL
ATM
Stock
Sabre Insurance Group PLC
Beeks Financial Cloud Group PLC
Keystone Law Group PLC
City Pub Group (The) PLC
Ten Lifestyle Group PLC
Boku Inc
Bakkavor Group PLC
Landscape Acquisition Holdings Ltd
AfriTin Mining Ltd
lacing price. *Intoduction. ?When issued. Annual report/prospectus available at www.ft.com/ir
For a full explanation of all the other symbols please refer to London Share Service notes.
Close
price(p)
250.00
45.00
190.50
170.50
143.50
73.00
193.50
9.50
2.35
+/0.00
0.72
1.00
-0.25
1.50
-1.00
-1.00
-0.05
-0.04
High
260.00
47.75
193.00
182.00
152.00
83.00
196.50
9.89
4.00
Low
238.00
41.00
188.00
170.00
136.00
72.00
185.50
9.50
2.30
Mkt
Cap ()
62500.0
2205.0
5957.7
9627.7
11573.3
15584.6
112118.9
460.0
699.0
16
FINANCIAL TIMES
Thursday 14 December 2017
MARKET DATA
FT500: THE WORLD'S LARGEST COMPANIES
Stock
Australia (A$)
ANZ?
BHPBilltn
CmwBkAu
CSL
NatAusBk
Telstra
Wesfarmers
Westpc?
Woolworths
Belgium (?)
AnBshInBv
KBC Grp
Brazil (R$)
Ambev
Bradesco?
Cielo
ItauHldFin
Petrobras
Vale
Canada (C$)
BCE
BkMontrl
BkNvaS
Brookfield?
CanadPcR
CanImp
CanNatRs?
CanNatRy
Enbridge
GtWesLif?
ImpOil?
Manulife?
Potash
RylBkC
Suncor En?
ThmReut?
TntoDom
TrnCan
ValeantPh
China (HK$)
AgricBkCh
Bk China
BkofComm
BOE Tech
Ch Coms Cons
Ch Evrbrght
Ch Rail Cons
Ch Rail Gp
ChConstBk
China Vanke
ChinaCitic
ChinaLife
ChinaMBank
ChinaMob
ChinaPcIns
ChMinsheng
ChMrchSecs RMB
Chna Utd Coms RMB
ChShenEgy
ChShpbldng RMB
ChStConEng RMB
ChUncHK
CNNC Intl RMB
CSR
Daqin RMB
Gree Elec Apl
GuosenSec RMB
HaitongSecs
Hngzh HikVDT RMB
Hunng Pwr
IM Baotou Stl RMB
In&CmBkCh
IndstrlBk RMB
Kweichow RMB
Midea
New Ch Life Ins
PetroChina
PingAnIns
PngAnBnk RMB
Pwr Cons Corp RMB
SaicMtr RMB
ShenwanHong
ShgPdgBk RMB
Sinopec Corp
Sinopec Oil RMB
Denmark (kr)
DanskeBk
MollerMrsk
NovoB
52 Week
High
Low
Price Day Chg
Yld
P/E MCap m
28.67
27.69
80.31
141.53
29.95
3.73
44.18
31.44
27.05
-0.15
0.04
-0.05
0.92
-0.02
0.01
0.39
-0.01
0.12
32.95
28.82
87.74
149.30
34.09
5.29
45.60
35.39
27.75
27.19 8.54 13.64 64109.15
22.06 3.81 18.56 67699.2
73.20 7.76 13.86 107154.69
95.26 1.26 35.84 48727.45
29.00 9.77 11.95 61228.7
3.34 12.30 11.07 33770.54
39.52 6.64 16.77 38133.32
29.40 8.77 13.36 81239.63
22.77 3.67 23.63 26867.16
93.87
71.55
-1.10
-0.69
110.10
72.97
93.85
56.22
3.61 55.31 186879.38
3.92 10.63 35171.58
21.23
31.09
24.01
38.68
16.18
36.19
-0.27
-0.05
-0.09
0.48
-0.01
0.01
22.70
35.83
26.29
40.18
18.85
37.40
15.79
24.01
20.15
27.28
12.47
25.00
2.98
2.02
3.11
4.90
3.02
36.50 101156.53
11.10 28788.24
15.60 19774.66
10.01 39301.98
27.36 36504.94
8.41 31048.1
62.79
101.09
82.99
56.46
231.89
120.42
43.92
103.93
49.48
35.00
39.10
26.84
25.72
102.49
44.48
57.24
72.68
62.85
28.74
0.21
0.19
0.16
0.08
2.76
0.27
-0.37
0.93
0.15
-0.02
-0.19
0.24
0.44
-0.38
0.22
-0.06
0.38
0.56
63.00
104.15
85.50
56.83
232.29
122.56
47.00
108.64
58.28
37.79
48.72
27.54
26.62
102.80
46.66
62.83
75.09
65.24
29.28
56.95
88.63
73.31
43.47
188.36
103.84
35.90
88.76
43.91
33.01
35.15
22.39
20.68
90.13
36.09
55.05
61.50
59.20
11.20
4.62
3.53
3.69
1.25
0.94
4.23
2.51
1.59
4.83
4.23
1.62
3.05
1.49
3.41
2.79
3.08
3.24
3.97
-
18.99 43985.75
12.72 50947.37
12.75 77426.67
95.88 43447.39
18.40 26156.71
10.68 41363.94
19.33 41621.82
19.91 60280.11
24.92 64943.23
13.92 26934.67
15.66 25369.88
14.41 41378.49
37.91 16811.13
13.51 115845.23
26.48 57231.09
30.21 31686.39
13.17 104178.22
31.49 42908.15
5.74 7786.69
3.66
3.82
5.82
1.35
8.67
3.62
9.09
5.72
6.93
28.30
4.95
24.75
31.30
76.80
37.55
7.86
18.07
6.99
19.16
6.08
9.41
10.78
7.43
7.66
8.88
0.06
11.73
11.34
39.41
4.86
2.59
6.20
17.28
668.21
1.57
51.60
5.41
79.50
13.13
7.50
31.71
0.21
12.74
5.57
2.76
0.08
0.10
0.13
0.05
0.05
0.04
0.03
0.01
0.29
0.70
0.12
0.05
0.60
0.40
-0.85
0.19
-0.07
0.04
0.20
0.02
0.02
0.26
-0.04
0.21
0.01
-0.07
0.14
0.56
-0.01
0.20
0.12
16.89
-0.75
0.20
0.85
0.11
0.01
0.32
-0.01
0.06
-0.02
3.80
4.18
6.44
1.89
11.74
4.06
11.98
7.71
7.12
31.00
5.50
28.20
34.25
91.30
42.30
9.48
22.35
9.29
21.10
8.14
10.96
13.24
8.11
7.99
9.49
0.23
16.28
15.14
43.66
6.25
3.17
6.48
18.52
719.96
1.87
57.85
6.38
87.10
15.24
9.00
34.23
0.35
14.02
6.57
4.37
3.10
3.32
5.40
1.22
8.45
3.38
8.91
5.63
5.42
17.40
4.69
19.84
17.52
75.80
26.35
7.16
15.57
6.15
14.10
5.87
8.33
8.67
6.83
6.81
6.76
0.04
11.62
11.08
22.61
4.75
1.98
4.45
14.99
316.20
1.50
34.35
4.72
38.00
8.54
6.78
22.56
0.20
11.16
5.40
2.75
5.42 5.49 14413.74
5.12 5.73 40925.58
5.46 5.59 26106.25
1.52 15.09
34.41
2.58 7.41 4917.98
3.16 5.07 3185.58
2.04 7.13 2418.03
1.78 8.44
3083.3
4.69 6.30 213454.52
3.25 11.21 4767.66
5.07 5.16 9437.97
1.12 18.72 23595.22
2.76 9.80 18409.83
3.67 11.99 201466.67
2.20 23.14 13351.41
4.25 5.01 6982.11
1.04 23.05 13384.55
- 152.85 22380.21
2.80 7.93
8342.6
- 127.52 16863.17
2.27 9.67 42259.17
69.28 42259.07
1.47 24.30 4746.98
3.21 17.69 4289.68
2.79 10.05 19941.27
-1.92
103.09
1.69 24.12 3889.25
2.25 14.25 4953.59
1.01 41.80 43204.07
7.07 24.15 2926.69
94.76 8622.03
4.39 6.79 68943.11
3.50 6.26 49729.46
1.01 34.88 126792.45
6.94 20.32
43.25
26.31 6836.33
1.05 38.54 14623.86
1.53 16.82 75855.95
1.19 10.26 33553.28
1.13 15.99 10875.65
5.16 10.90 52810.37
-2.55
238.48
1.20 6.90 54082.32
5.63 10.37 18206.65
-3.72 1174.96
242.20 -1.60
10640 -20.00
337.30 -0.20
259.50
14260
339.80
212.20
10060
225.60
3.72 10.81 35841.16
1.28 -17.76 16908.64
2.26 21.74 104565.51
Stock
Price Day Chg
Finland (?)
Nokia
3.95
0.08
5.96
3.81
SampoA
45.70
0.19 47.46 41.53
France (?)
Airbus Grpe
86.25 -0.98 89.27 61.73
AirLiquide
107.90 -0.20 111.60 90.27
AXA
25.43 -0.12 26.35 21.81
BNP Parib
64.36 -0.47 69.17 53.96
ChristianDior 303.35
1.10 309.00 190.95
Cred Agr
14.52 -0.16 15.68 11.06
Danone
71.11 -0.43 72.00 57.99
EDF
11.00 -0.23 12.48
7.33
Engie SA
14.70 -0.16 15.16 10.77
Esslr Intl
112.15 -0.15 122.15 100.60
Hermes Intl
442.55
1.05 468.30 383.75
LOreal
188.10 -1.55 197.15 165.65
LVMH
247.00
0.55 260.55 175.75
Orange
14.66 -0.17 15.80 13.50
PernodRic
129.35 -0.20 132.65 100.30
Renault
84.86
0.16 91.30 73.71
Safran
87.61 -0.54 92.25 61.51
Sanofi
74.66 -0.37 92.97 72.63
Sant Gbn
47.33
0.15 52.40 43.20
Schneider
70.62 -1.24 75.94 63.36
SFR Group
34.50 34.56 21.87
SocGen
44.54
0.01 52.26 40.66
Total
47.37 -0.41 49.50 42.23
UnibailR
214.45 -0.55 238.15 202.15
Vinci
86.23 -0.72 88.77 62.77
Vivendi
22.70 -0.20 23.50 15.96
Germany (?)
Allianz
196.35 -0.90 204.50 154.25
BASF
94.15 -0.06 97.90 78.97
Bayer
106.40 -0.25 123.90 95.11
BMW
85.71 -0.29 91.76 77.07
Continental
224.45
0.20 226.25 178.55
Daimler
71.00
0.26 73.64 59.01
Deut Bank
16.52 17.69 13.11
Deut Tlkm
15.20 -0.08 18.15 14.62
DeutsPost
40.44
0.42 40.89 30.32
E.ON
9.22 -0.48 10.81
6.27
Fresenius Med
88.57
0.04 89.22 73.87
Fresenius SE
66.53 -0.53 80.07 60.15
HenkelKgaA 102.55 -1.30 114.60 95.23
Linde
183.35 -0.15 193.20 145.60
MuenchRkv
184.30 -0.95 199.00 166.60
SAP
96.06 -0.13 100.70 79.21
Siemens
116.25 -0.85 133.50 108.00
Volkswgn
169.95 -0.10 175.40 128.05
Hong Kong (HK$)
AIA
63.45
0.25 69.15 43.00
BOC Hold
40.30
1.20 40.50 27.10
Ch OSLnd&Inv
23.95 29.45 20.15
ChngKng
66.05
0.35 70.50 46.50
Citic Ltd
11.04
0.12 12.70 10.66
Citic Secs
16.12
0.12 18.74 15.36
CK Hutchison
96.20
0.05 108.90 87.00
CNOOC
11.10
0.12 11.28
8.45
HangSeng
190.40
4.70 195.30 142.10
HK Exc&Clr
229.40
1.20 257.60 177.60
MTR
45.60
0.15 50.00 37.20
SandsCh
41.35
2.00 41.85 31.25
SHK Props
123.50
1.10 136.90 96.50
Tencent
395.60
2.40 439.60 179.60
India (Rs)
Bhartiartl
517.35 -6.50 564.80 288.70
HDFC Bk
1821.35
1.45 1879.6 1163.6
Hind Unilevr 1315.05
0.40
1337 781.95
HsngDevFin
1696.7 -14.10
1804 1197.25
ICICI Bk
302.95 -4.65 332.35 224.27
Infosys
1003.75 -6.75
1044 860.00
ITC
259.00 -2.55 354.80 222.00
L&T
1189.25 -13.65 1274.95 868.33
OilNatGas
183.90
0.60 211.80 155.20
RelianceIn
914.65 -0.95 959.50 506.40
SBI NewA
313.30 -5.15 351.30 241.10
SunPhrmInds 516.85 -4.00 729.05 432.70
Tata Cons
2628.4 16.25 2777.4
2153
Indonesia (Rp)
Bk Cent Asia?
20925 -325.00 21625 14125
Israel (ILS)
58.52
0.92 147.40 38.20
TevaPha
Italy (?)
5.43 -0.09
5.59
3.82
Enel
ENI
14.02 -0.12 15.92 12.94
Generali
15.36
0.07 16.08 13.21
IntSPaolo
2.87 -0.03
3.01
2.06
Luxottica
50.45 -0.10 56.90 45.32
Unicred
16.60 -0.81 18.38 11.46
Day
change change %
0.56
1.99
1.27
0.37
2.00
5.08
-0.71
-7.99
0.24
0.94
-1.50
-0.62
3.20
1.60
75.00
1.55
0.13
0.33
0.09
0.29
0.45
0.77
0.60
0.18
1.20
1.93
5.44
3.79
11.70
1.55
0.21
2.82
4.73
1.63
2.55
4.74
3.95
2.20
2.51
0.97
Close
Prev
price
price
ValeantPh
28.74
28.18
Tesla Mtrs
342.30
341.03
SandsCh
41.35
39.35
Altice
8.12
8.83
Potash
25.72
25.48
DanskeBk
242.30
243.80
Barclays
203.80
200.60
SumitomoF
4902.00
4827.00
MylanNV
39.42
39.29
Surgutneftegas
29.10
29.01
L Brands
58.77
58.32
NovoB
338.10
337.50
Nike
63.37
62.17
Caterpillar
148.86
143.42
HSBC
768.80
757.10
CSR
7.66
7.45
Boeing
294.67
289.94
Ericsson
56.35
53.80
FEMSA UBD
183.73
179.78
GoldmSchs
260.19
257.68
Based on the FT Global 500 companies in local currency
Week
change change %
7.22
33.6
29.04
9.3
3.40
9.0
0.63
8.5
1.87
7.8
15.50
6.8
12.80
6.7
306.00
6.7
2.43
6.6
1.77
6.5
3.56
6.4
20.10
6.3
3.65
6.1
8.52
6.1
43.90
6.1
0.43
5.9
16.40
5.9
3.10
5.8
10.08
5.8
14.24
5.8
Month
change %
54.77
8.55
9.97
-20.61
5.72
1.21
13.29
9.96
5.03
-2.69
19.84
7.03
13.34
8.73
4.84
4.22
12.31
11.25
10.08
8.30
Current
1.00-1.25
4.25
0.75
0.00
0.50
0.00-0.00
0.00-0.25
Since
15-06-2017
15-06-2017
15-06-2017
16-03-2016
04-08-2016
01-02-2016
15-01-2015
Last
1.00
3.75
0.75
0.05
0.25
0.00
0.00-0.75
Mnth Ago
1.00-1.25
4.25
1.75
0.00
0.25
0.00--0.10
-1.25--0.25
Year Ago
0.25-0.50
3.50
1.00
0.00
0.25
0.00--0.10
-1.25--0.25
INTEREST RATES: MARKET
Dec 13 (Libor: Dec 12)
US$ Libor
Euro Libor
� Libor
Swiss Fr Libor
Yen Libor
Euro Euribor
Sterling CDs
US$ CDs
Euro CDs
Over
night
1.18250
-0.43786
0.47314
P/E MCap m
Stock
Japan (�)
AstellasPh
1445
3.00
1688 1331.5
Bridgestne
5073 -85.00
5605
3973
Canon
4367 -25.00
4472
3218
CntJpRwy
21115 185.00 21520 17525
Denso
6253 -9.00
6697
4551
EastJpRwy
11200 -5.00 11570
9511
Fanuc
26440 -335.00 29205 19630
FastRetail
44340 45470 30000
Fuji Hvy Ind
3709
8.00
5016
3562
Hitachi
839.40 -13.50 908.70 566.30
HondaMtr
3834 28.00
3863
3000
JapanTob
3720 -6.00
4243
3607
KDDI
3221 29.00
3260 2840.5
Keyence
62990 -350.00 69910 37750
MitsbCp
2917 -12.50
2972 2208.5
MitsubEst
2009 -7.00 2418.5
1825
MitsubishiEle 1816.5 -46.50
1979
1462
MitsuiFud
2547.5 -19.00 2851.5 2274.5
MitUFJFin
830.00 17.20 830.70 570.20
Mizuho Fin
207.30
1.10 224.50 185.40
Murata Mfg
14905 -135.00 17910 14000
NipponTT
5692 -8.00
5905
4672
Nissan Mt
1104.5
4.00
1220 996.20
Nomura
672.30
1.10 774.40 567.70
Nppn Stl
2838.5 -32.00
2912 2323.5
NTTDCMo
2881.5 13.00 2907.5 2501.5
Panasonic
1637.5 20.00
1800
1137
Seven & I
4684 40.00
4891
4234
ShnEtsuCh
11495 -425.00 12915
8933
Softbank
9365 -79.00 10550
7494
Sony
5033 -11.00
5485
3262
SumitomoF
4902 75.00
4920
3760
Takeda Ph
6210 85.00
6464
4664
TokioMarine
5165 34.00
5348
4192
Toyota
7080 39.00
7312
5670
Mexico (Mex$)
AmerMvl
16.46
0.03 18.44 12.21
FEMSA UBD 183.73
3.95 185.20 150.11
WalMrtMex
45.87
0.02 47.29 34.70
Netherlands (?)
Altice
8.12 -0.71 23.43
6.44
ASML Hld
147.55 -0.20 159.95 97.51
Heineken
85.84 -0.52 89.71 69.04
ING
15.59 -0.04 16.13 12.81
Unilever
48.65 -0.32 52.31 37.23
Norway (Kr)
DNB
154.00 -1.40 164.30 126.90
Statoil?
171.80 -2.20 174.00 135.80
Telenor
177.20 -2.90 187.70 125.60
Qatar (QR)
QatarNtBk
123.59
0.69 173.00 115.01
Russia (RUB)
Gzprm neft
135.56
0.06 160.62 111.46
Lukoil
3458 -15.50
3582
2601
MmcNrlskNckl
10512 -275.00 11938
7677
Novatek
690.00 -5.00 800.70 590.20
Rosneft
298.85 -4.25 425.70 286.00
Sberbank
221.80 -6.10 233.95 136.20
Surgutneftegas
29.10
0.09 32.87 24.09
Saudi Arabia (SR)
AlRajhiBnk
63.40 -0.30 71.70 61.00
Natnlcombnk
50.70 -0.20 58.00 37.00
SaudiBasic
101.00 -0.40 105.40 90.50
SaudiTelec
68.70 -0.30 78.90 64.50
Singapore (S$)
DBS
25.30
0.10 25.36 17.15
JardnMt US$
63.14
0.02 68.11 53.62
JardnStr US$
40.64 -0.70 46.48 32.14
OCBC
12.59
0.04 12.59
8.85
SingTel
3.79 4.02
3.62
UOB
26.79
0.15 26.79 20.05
South Africa (R)
Firstrand
54.44
0.92 59.00 43.44
MTN Grp
126.92
0.56 134.94 109.05
Naspers N
3479.39 -20.61 4142.99 1936.82
South Korea (KRW)
HyundMobis 259500 3500 289500 212000
KoreaElePwr
38450 350.00 49000 37000
SK Hynix
76800-1000.00 90300 44600
SmsungEl
2566000-39000.00 2876000 1731000
Spain (?)
7.20 -0.02
7.93
5.92
BBVA
BcoSantdr
5.66 -0.03
6.25
4.75
CaixaBnk
4.00 -0.01
4.51
3.03
Iberdrola
6.63 -0.09
7.30
5.76
Inditex
31.30
0.53 36.90 29.00
Repsol
15.32 -0.08 16.30 13.04
Telefonica?
8.35 -0.05 10.63
8.35
0.44 -56.41 27146.82
5.04 10.89 30025.35
1.57 64.28 78546.61
2.40 22.61 54332.52
4.55 10.41 73133.48
4.20 10.80 94495.05
1.03 36.96 64380.56
4.14 11.84 48571.71
2.39 24.32 56076.54
8.16 11.85 37861.33
6.79 -64.05 42090.35
1.33 31.57 28844.25
0.85 40.25 54930.8
1.75 28.96 123900.61
1.62 28.45 147236.25
4.09 146.86 45834.48
1.48 24.69 40366.23
3.70 5.42 29505.47
1.73 14.00 42957.2
3.96 20.18 110879.92
2.54 20.76 30798.66
2.88 20.27 49557.18
- -23.02 17905.81
4.95 13.94
42309
4.86 17.64 140843.18
4.75 8.70 25174.42
2.43 18.50 60515.2
1.76 69.11 34583.96
3.86 11.93 102986.4
3.18 18.15 101672.83
2.54 22.32 103451.12
4.09 7.42 60665.25
1.90 14.90 52781.05
4.58 8.01 89308.25
1.15 -34.03 40143.78
3.95-1518.20 85094.03
2.60 18.53 57705.41
2.28 92.08 23863.43
1.09 21.16 31992.94
0.93 20.70 43377.37
1.56 20.48 31324.45
2.02 29.97 40039.24
4.67 86.00 33593.15
1.16 33.05 138750.55
3.10 16.06 116178.93
1.18 12.27 58964.53
1.40
3.31
3.45
2.36
3.07
2.54
2.87
3.23
3.26
1.99
2.41
4.97
3.25
0.16
18.70 98154.43
16.17 54588.64
6.04 33618.12
12.01 31288.75
7.72 41145.56
16.21 4705.32
10.62 47545.43
17.36 63493.15
21.07 46636.57
41.76 36438.11
20.82 35093.53
30.77 42770.83
8.32 45833.75
58.99 481439.11
0.19 132.30
0.59 31.22
1.33 59.81
1.04 24.57
1.59 18.03
2.52 16.56
1.77 28.90
2.31 25.87
4.28 10.86
0.59 16.82
0.82 67.70
0.67 39.55
1.78 20.27
32087.73
73138.41
44164.43
42035.01
30182.29
35773.58
48979.78
25850.26
36617.97
89882.14
41961.54
19241
78068.48
0.96 23.01 37589.52
6.65 -2.79 16738.55
3.32
5.71
4.55
6.21
1.82
-
22.57
29.79
12.00
8.20
25.93
-1.61
52 Week
High
Low
Price Day Chg
64847.66
59906.02
28205.54
53554.69
28768.73
43439.89
Yld
2.42
2.76
3.44
0.66
2.00
1.21
1.79
0.84
3.88
1.67
2.50
3.78
2.79
0.10
3.33
1.14
1.76
1.41
2.35
3.62
1.61
2.37
4.57
2.98
2.64
3.12
1.53
2.05
1.09
0.47
0.45
3.16
2.90
2.95
2.97
P/E MCap m
16.16 26444.77
14.05 36488.72
20.47 51524.12
10.42 38477.51
15.62 43923.32
14.86 38209.05
33.43 47727.19
35.64 41605.61
13.96 25236.61
14.20 35890.21
10.69 61435.86
16.09 65814.5
14.33 73717.68
67759.09
9.01 41030.15
32.09 24718.77
15.39
34503
23.42 22342.02
52.16 102994.28
16.45 46559.02
19.52 29702.07
13.46 105556.88
6.60 41238.29
10.11 22733.51
11.45 23862.07
17.18 99399.28
28.34 35533.41
25.50 36729.57
24.60 43938.84
13.76 91182.14
25.07 56306.59
9.93 61334.88
29.87 43447.89
19.84 34177.06
10.94 204361.3
1.85 29.92 38622.96
1.45 14.36 20774.21
1.37 24.47 41904.57
0.81
1.56
4.22
2.71
-4.14
31.82
26.88
12.21
24.01
12938.28
74851.41
58133.92
71225.56
98072.86
3.88 12.43 29956.71
4.29 -82.41 67824.57
4.61 54.39 31774.8
2.56
9.20 31352.11
6.03
9.26
6.62
1.03
2.03
0.99
2.10
3.58
7.02
10.28
11.94
17.70
7.29
10.51
54610.53
50051.01
28307.27
35651.33
53897.14
81476.91
17688.3
4.71
1.26
3.94
5.80
11.88 27466.74
10.12 27033.52
15.63 80780.61
14.93 36631.2
2.47
2.45
0.74
2.88
4.57
2.70
16.48
6.41
5.93
14.01
10.92
13.90
47917.74
45855.57
45017.59
39049.93
45829.09
33206.19
4.61 11.74 22658.52
5.84 27.26 17744.51
0.15 36.06 113244.7
1.28 10.71 23160.11
5.37 4.10 22630.9
0.74 6.32 51261.19
1.79 10.36 303719.39
4.19
3.76
2.51
4.70
1.62
4.97
6.48
12.18 56415.05
13.13 107287.19
15.11 28095.59
15.04 49231.64
29.54 114677.65
12.21 27512.24
18.12 50955.58
Day
0.000
-0.001
0.000
Change
Week
0.000
-0.002
0.000
Month
0.012
-0.007
0.001
0.002
0.002
0.000
0.000
0.000
0.000
One
month
1.47195
-0.41114
0.49369
-0.81830
-0.04884
-0.36900
0.47000
1.21000
-0.44500
Three
month
1.57352
-0.38643
0.52244
-0.75280
-0.01767
-0.32700
0.51000
1.34000
-0.40500
Six
month
1.74769
-0.32229
0.57981
-0.65080
0.01500
-0.27100
0.60500
1.51000
-0.33500
One
year
2.02825
-0.25686
0.76713
-0.52720
0.10483
-0.19100
Short
term
-0.50 -0.35
7 Days
One
Three
Six
One
Dec 13
notice
month
month
month
year
Euro
-0.50 -0.35 -0.52 -0.37 -0.48 -0.33 -0.41 -0.26 -0.41 -0.16
Sterling
0.42 0.52 0.42 0.52 0.46 0.56 0.53 0.68 0.70 0.85
Swiss Franc
Canadian Dollar
US Dollar
1.17 1.27 1.21 1.31 1.39 1.49 1.51 1.61 1.74 1.84 2.00 2.10
Japanese Yen
-0.05 0.15 -0.15 0.05 -1.10 -0.60 -0.40 -0.10 -0.15 0.15 -0.10 0.20
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs:
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA.
COMMODITIES
Energy
Price*
Crude Oil?
Dec
57.57
Brent Crude Oil?
62.49
RBOB Gasoline?
Dec
1.70
Heating Oil?
Dec
1.60
Natural Gas?
Dec
2.73
Ethanol?
Uranium?
Dec
18.10
Carbon Emissions?
Diesel?
Unleaded (95R)
Base Metals (? LME 3 Months)
Aluminium
2015.00
Aluminium Alloy
1790.00
Copper
6743.00
Lead
2521.00
Nickel
11100.00
Tin
18780.00
Zinc
3155.50
Precious Metals (PM London Fix)
Gold
1242.65
Silver (US cents)
1570.50
Platinum
883.00
Palladium
1006.00
Bulk Commodities
Iron Ore (Platts)
71.05
Iron Ore (The Steel Index)
69.70
GlobalCOAL RB Index
96.00
Baltic Dry Index
1730.00
www.ft.com/commodities
Change
0.31
-1.41
0.01
0.00
0.04
0.00
-2.00
-85.00
65.50
4.50
-5.00
-355.00
3.00
Agricultural & Cattle Futures
Corn?
Wheat?
Soybeans?
Soybeans Meal?
Cocoa (ICE Liffe)X
Cocoa (ICE US)?
Coffee(Robusta)X
Coffee (Arabica)?
White SugarX
Sugar 11?
Cotton?
Orange Juice?
Palm Oil?
Live Cattle?
Feeder Cattle?
Lean Hogs?
S&P GSCI Spt
DJ UBS Spot
R/J CRB TR
M Lynch MLCX Ex. Rtn
UBS Bberg CMCI TR
0.75 LEBA EUA Carbon
0.10 LEBA CER Carbon
2.00 LEBA UK Power
-13.00
1.75
-7.50
-1.00
-1.00
Dec
Jan
Feb
Price*
348.75
412.75
978.75
325.40
1415.00
1858.00
1715.00
119.55
363.90
13.86
73.32
150.90
116.00
146.98
66.55
Change
0.75
1.25
2.50
1.20
10.00
-20.00
27.00
0.75
-0.60
0.00
0.26
0.95
0.00
1.70
0.00
Dec 12
416.35
83.44
186.25
231.14
14.48
7.36
0.18
3480.00
% Chg
Month
-2.85
-4.41
-4.17
-9.84
-3.69
-3.66
5.88
3.73
% Chg
Year
5.05
-5.38
-4.25
-33.05
57.26
-40.00
131.23
Mar
Mar
Jan
Jan
Mar
Mar
Jan
Mar
Mar
Jan
Sources: ? NYMEX, ? ECX/ICE, ? CBOT, X ICE Liffe, ? ICE Futures, ? CME, ? LME/London Metal Exchange.* Latest prices, $
unless otherwise stated.
Stock
Price Day Chg
52 Week
High
Low
Sweden (SKr)
AtlasCpcoB
312.40 -5.90 339.00 243.40
Ericsson
55.90
2.10 64.95 43.75
H&M
202.50
2.80 276.90 187.60
Investor
389.40 -1.20 425.60 332.70
Nordea Bk
100.60
0.10 115.70 95.90
SEB
99.70 -0.25 109.00 94.05
SvnskaHn
114.50 -0.50 136.30 108.80
Swedbank
200.70 -2.00 234.00 193.20
Telia Co
37.46 -0.11 40.33 34.49
Volvo
158.20 -1.50 171.30 105.60
Switzerland (SFr)
ABB
25.69 -0.10 26.54 21.37
CredSuisse
17.46
0.17 17.53 12.91
Nestle
85.75
0.25 86.40 71.45
Novartis
83.85
0.30 85.40 69.50
Richemont
88.00 -0.05 92.50 65.60
Roche
241.70 273.00 226.10
Swiss Re
91.45
0.55 98.50 81.65
Swisscom
517.00 -1.00 527.00 429.80
Syngent
463.00 -6.70 471.20 360.50
UBS
17.85
0.20 17.89 15.11
Zurich Fin
300.70
3.10 306.90 262.10
Taiwan (NT$)
Chunghwa Telecom 104.50 111.00 99.50
Formosa PetChem 113.00
3.50 119.00 101.00
HonHaiPrc
93.70 -0.40 122.50 82.60
MediaTek
291.00 -5.00 350.50 203.00
TaiwanSem
227.00 -0.50 245.00 178.50
Thailand (THB)
PTT Explor
426.00 -2.00 436.00 359.00
United Arab Emirates (Dhs)
Emirtestele
17.30
0.20 18.95 15.75
United Kingdom (p)
AscBrFd
2903 14.00
3387
2335
AstraZen
4925 -10.00
5520 4136.5
Aviva
501.50 -10.50 570.50 467.31
Barclays
203.80
3.20 244.40 177.30
BP?
505.40 -5.60 529.00
4.80
BrAmTob
5029 -15.00 17365.43 2879.89
BSkyB
1009 -3.00 1030.29 799.52
BT
268.00 -1.70 400.70 242.70
Compass
1532 22.00 1765.92 1407.12
Diageo
2643 -5.50 2677.5 2037.5
GlaxoSmh?
1314 -0.50 1724.5
1270
Glencore
354.00
6.55 388.25 260.50
HSBC
768.80 11.70 773.20 518.17
Imperial Brands 3067.5 -36.50 3956.5
3013
LlydsBkg
67.36 -0.04 73.58 60.84
Natl Grid?
874.40 -9.90 1174.36 859.30
Prudential
1836.5
8.50 1933.5
1524
RBS
280.90 290.50 210.50
ReckittB
6747 -16.00 8110.43
6299
RELX
1738 23.00
1784
1359
RioTinto
3547
6.00 4226.56 2882.5
RollsRoyce?
837.50
1.50 994.50 635.00
RylDShlA?
2405 -21.00 2516.32 1982.5
Shire
3677.5 -83.00
5067 3435.5
StandCh
774.00
1.10 860.00 646.40
Tesco
208.40
2.75 215.16 165.35
Vodafone?
230.90 -1.45 233.90 186.50
WPP
1363 -6.00 1928.07 1238.45
United States of America ($)
21stC Fox A
33.01 -1.10 34.75 24.81
3M
239.21
2.63 244.23 173.55
AbbottLb
55.15 -0.55 56.69 37.90
Abbvie
98.22
1.92 98.87 59.27
Accenture
151.31 -0.79 152.80 112.31
Adobe
176.44
3.90 186.27 101.91
AEP
76.61
0.59 78.07 61.03
Aetna
180.26 -1.07 192.37 116.04
Aflac
88.80
0.04 89.15 66.50
AirProd
162.67 -0.22 164.65 133.63
Alexion
113.75
0.15 149.34 96.18
Allegran
169.85 -2.02 256.80 160.07
Allstate?
104.16
0.62 104.18 72.42
Alphabet
1050
1.23
1080 789.62
Altria
71.99
0.27 77.79 60.01
Amazon
1164 -1.08 1213.41 747.70
AmerAir
50.40 -0.07 54.48 39.21
AmerExpr
98.94 -0.43 99.75 73.11
AmerIntGrp?
59.65 -0.28 67.47 57.90
AmerTower
144.23
0.72 155.28 102.51
Amgen
177.52
1.26 191.10 145.12
Anadarko?
48.64
0.10 72.73 39.96
Anthem?
231.45
2.70 236.39 140.50
Aon Cp
137.58 -0.92 152.78 109.82
Apple
172.90
1.20 176.24 113.75
ArcherDan
40.72 -1.05 47.44 38.59
Yld
P/E MCap m
2.16
1.85
2.67
2.60
6.43
5.69
4.50
6.78
6.88
2.12
22.07
-9.89
16.80
3.99
11.62
12.17
13.46
11.60
13.76
14.89
14419.05
20314.5
34986.04
20979.08
48190.9
25590.34
25852.99
26872.82
19185.87
30791.19
2.93
3.94
2.85
3.31
2.08
3.60
5.57
4.33
6.27
25.08 56310.69
-22.46 45117.49
26.99 269794.99
30.08 221829.28
25.99 46439.87
20.20 171672.05
8.71 32307.95
15.70 27075.37
41.32 42748.26
16.70 69514.17
13.16 46005.56
4.66
5.24
4.74
2.71
3.04
21.45
13.70
12.20
24.13
17.49
26998.86
35850.66
54077.45
15327.29
196039.9
4.11 10.73 37347.57
4.99 15.73 40961.02
1.30 19.15 30707.76
4.17 23.68 83292.87
4.28 33.21 27105.07
1.47 17.13 46388.12
5.87 34.51 133619.63
3.10 20.18 125281.54
2.08 25.23 23175.33
5.39 16.65 35667.58
2.15 21.89 33664.41
2.28 24.54 88902.07
6.09 27.78 86342.74
0.76 30.65 68086.55
4.92 36.84 205961.18
5.06 28.88 39118.73
4.01 15.67 64586.12
5.22 17.61 40064.9
2.37 17.20 63451.92
- -10.48 44573.7
2.27 22.62 63370.35
1.87 31.15 48046.05
3.67 13.43 65295.24
0.55 -22.45 20591.61
6.02 31.88 143855.74
0.62 26.67 44603.53
- 1675.32 34034.88
37.21 22798.94
5.70 -83.99 82293.22
4.15 10.04 23210.2
1.09 20.46 34787.56
1.93 26.81 142475.42
1.91 46.15 95994.13
2.52 23.94 156793.35
1.66 26.82 97056.48
53.51 86974.87
3.07 20.09 37683.34
0.83 34.09 58782.79
1.97 13.06 34909.72
2.27 31.66 35562.65
50.99 25412.85
1.23 -7.55 56489.24
1.38 14.57 37375.31
35.27 313191.56
3.44 9.06 137368.67
- 297.40 560899.21
0.79 12.78 24116.11
1.32 19.14 85879.55
2.14 -28.25 53622.93
1.73 55.07 61853.96
2.50 16.10 128863.65
0.41 -13.91 26613.74
1.20 21.01 59427.22
1.00 39.13 34380.93
1.38 18.85 887722.54
3.08 19.20 22772.67
Stock
52 Week
High
Low
Price Day Chg
AT&T
AutomData?
Avago Tech
BakerHu
BankAm?
Baxter?
BB & T
BectonDick?
BerkshHat
Biogen
BkNYMeln
BlackRock?
Boeing
BrisMySq
CapOne
CardinalHlth
Carnival?
Caterpillar
CBS?
Celgene
CharlesSch
Charter Comms
Chevron Corp
Chubb
Cigna
Cisco
Citigroup
CME Grp?
Coca-Cola?
Cognizant
ColgtPlm
Comcast
ConocPhil
Corning
Costco
CrownCstl
CSX?
CVS
Danaher
Deere
Delphi
Delta
Devon Energy
DiscFinServ
Disney?
DominRes?
DowChem
DukeEner?
Eaton
eBay
Ecolab
Emerson
EOG Res
EquityResTP
Exelon
ExpScripts
ExxonMb
Facebook
Fedex?
FordMtr
Franklin
GenDyn
GenElectric
GenMills
GenMotors
GileadSci
GoldmSchs?
Halliburton?
HCA Hold
Hew-Pack?
HiltonWwde?
HomeDep?
Honywell
HumanaInc
IBM
IllinoisTool
Illumina
Intcntl Exch?
Intel
Intuit
John&John
JohnsonCn
JPMrgnCh
Kimb-Clark?
KinderM
Kraft Heinz?
Kroger
L Brands
LasVegasSd
LibertyGbl
Lilly (E)
37.70 -0.41 43.03 32.55
117.31
0.26 121.77 94.11
262.53
3.83 285.68 173.31
57.68
3.17 68.59 43.09
29.34
0.02 29.50 21.77
64.44
0.13 66.18 43.81
50.25 -0.03 51.11 41.17
219.73
0.74 229.69 161.50
299260 630.00 299790237983.82
331.46
3.71 348.84 244.28
55.13
0.16 55.40 43.85
517.56 -0.17 518.88 365.83
294.67
4.73 295.85 153.06
63.51
0.23 66.10 46.01
96.34
0.13 96.92 76.05
60.32
0.06 84.88 54.66
65.87 -0.68 69.89 50.77
148.86
5.44 148.89 90.34
58.09
0.12 70.10 52.75
108.03 -1.01 147.17 94.55
51.00 -0.56 51.98 37.16
327.53 -2.47 408.83 275.34
119.48 -0.20 122.30 102.55
149.44 -1.06 156.00 127.15
208.63
0.15 212.46 131.26
38.23
0.32 38.37 29.80
76.22
0.07 77.92 55.23
152.56 -0.47 155.29 113.27
45.64
0.35 47.48 40.22
71.46
0.01 76.51 51.52
73.14
0.65 77.27 63.43
38.78 -0.73 42.18 34.12
51.81 -0.16 54.22 42.27
32.61 -0.04 32.82 24.12
188.39
0.09 191.22 150.00
111.55
0.66 114.97 83.96
58.24
1.26 58.29 35.59
71.81 -1.04 84.72 66.45
93.96
0.24 94.82 77.66
153.24
2.17 153.29 100.05
50.50 -0.18 57.25 31.83
53.53 -0.09 55.75 43.81
38.40 -0.01 49.45 28.79
74.92 -0.17 75.51 57.50
107.70
0.27 116.10 96.20
83.77
0.34 84.84 70.87
66.65
1.75
87.61
0.48 91.80 74.95
78.47
0.71 82.34 66.60
37.43 -0.01 39.28 29.01
135.04
0.19 137.96 116.92
67.24
0.57 67.79 55.40
100.32
0.04 109.13 81.99
65.74 -0.56 70.46 59.49
41.28
0.27 42.67 33.30
68.49 -0.07 73.52 55.80
83.04
0.28 93.22 76.05
178.70
1.74 184.25 114.77
242.55
3.05 243.06 182.89
12.71
0.11 13.27 10.47
44.36
0.21 47.65 38.93
197.91
1.73 214.81 171.65
17.86 -0.05 32.38 17.46
56.16
0.10 64.06 49.65
41.79
0.26 46.76 31.92
76.88
0.79 86.27 63.76
260.19
2.51 260.36 209.62
45.00 -0.24 58.78 38.18
86.66
0.21 91.03 71.18
20.95 -0.03 22.68 14.40
77.19
0.19 83.85 55.00
182.86
1.06 186.31 133.05
156.19
2.45 156.70 113.60
256.00
1.36 264.56 186.25
154.78 -1.96 182.79 139.13
164.65
0.77 169.69 120.06
214.72
2.08 230.72 124.75
70.83 -0.17 72.99 55.80
43.34
0.01 47.30 33.23
157.43
1.58 158.90 111.90
142.50 -0.10 144.35 110.76
38.07 -0.19 44.70 34.51
106.96
0.11 108.40 81.64
117.10
0.70 136.21 109.67
17.85
0.10 23.01 16.68
78.82 -0.13 97.77 75.21
26.41
0.08 36.44 19.69
58.77
0.45 73.50 35.00
70.60
0.52 71.42 51.35
31.89 -0.11 37.69 28.17
88.14
1.43 89.09 67.54
BONDS: HIGH YIELD & EMERGING MARKET
Close
Prev
price
price
MediaTek
291.00
296.00
Delphi
50.50
50.68
ChMrchSecs
18.07
18.14
Firstrand
54.44
53.52
Telenor
177.20
180.10
E.ON
9.22
9.70
UnibailR
214.45
215.00
Sinopec Oil
2.76
2.78
Citic Secs
16.12
16.00
Kimb-Clark
117.10
116.40
ChUncHK
10.78
10.52
Ch OSLnd&Inv
23.95
23.95
HyundMobis
259500.00 256000.00
Fanuc
26440.00 26775.00
ChStConEng
9.41
9.39
ShgPdgBk
12.74
12.75
GuosenSec
11.73
11.80
Sony
5033.00
5044.00
Airbus Grpe
86.25
87.23
IndstrlBk
17.28
17.16
Based on the FT Global 500 companies in local currency
Day
change change %
-5.00
-1.69
-0.18
-0.36
-0.07
-0.39
0.92
1.72
-2.90
-1.61
-0.48
-4.92
-0.55
-0.26
-0.02
-0.72
0.12
0.75
0.70
0.60
0.26
2.47
0.00
0.00
3500.00
1.37
-335.00
-1.25
0.02
0.21
-0.01
-0.08
-0.07
-0.59
-11.00
-0.22
-0.98
-1.12
0.12
0.70
Week
change change %
-27.00
-8.5
-3.63
-6.7
-1.10
-5.7
-3.18
-5.5
-9.50
-5.1
-0.46
-4.7
-9.35
-4.2
-0.12
-4.2
-0.70
-4.2
-5.06
-4.1
-0.42
-3.8
-0.85
-3.4
-9000.00
-3.4
-905.00
-3.3
-0.32
-3.3
-0.43
-3.3
-0.38
-3.1
-153.00
-3.0
-2.61
-2.9
-0.52
-2.9
Month
change %
-10.74
-41.69
-7.14
3.62
2.07
-4.71
-1.58
-9.80
-8.30
1.53
-9.72
-2.44
-3.35
-4.51
-0.42
0.87
-10.80
-3.78
3.60
1.95
Bid
yield
Mth's Spread
chge
vs
yield
US
Dec 13
High Yield US$
HRG Group, Inc.
S*
Ratings
M*
F*
Bid
price
07/19
7.88
BB-
Ba3
BB
100.38
7.75
0.01
0.24
5.92
High Yield Euro
Kazkommerts Intl BV
02/17
6.88
B
Caa1
B
97.50
-
0.00
0.00
-
Emerging US$
Mexico
Brazil
Peru
Peru
Brazil
Poland
Colombia
Turkey
Turkey
Russia
09/16
01/18
03/19
03/19
01/22
03/22
03/23
03/23
03/27
06/28
11.40
8.00
7.13
7.13
12.50
5.00
2.63
3.25
6.00
12.75
BBB+
BB
BBB+
BBB+
BB
BBB+
BBB
BB+
A3
Ba2
A3
A3
Ba2
A2
Baa2
Ba1
Ba1
Ba1
BBB+
BB
BBB+
BBB+
BB
ABBB
BB+
BB+
BBB-
106.80
100.45
106.85
114.01
112.75
107.75
97.35
93.05
105.96
173.49
1.49
2.76
1.81
2.60
8.70
3.05
3.20
4.76
5.25
4.13
0.03
-0.52
-0.01
0.00
0.00
0.00
0.02
0.00
0.02
0.02
0.01
-0.38
0.25
0.20
0.02
0.15
0.02
-2.31
-0.34
-0.03
0.44
0.93
-0.02
0.84
6.54
0.89
1.04
2.60
2.86
1.74
Red
date Coupon
Index
Day's
change
Month's
change
Year
change
Return
1 month
Return
1 year
Markit IBoxx
ABF Pan-Asia unhedged
Corporates( �)
Corporates($)
Corporates(?)
Eurozone Sov(?)
Gilts( �)
Global Inflation-Lkd
Markit iBoxx � Non-Gilts
Overall ($)
Overall( �)
Overall(?)
Treasuries ($)
188.15
344.52
278.38
227.86
235.67
321.88
266.01
338.73
239.35
323.80
231.47
224.44
0.02
-0.07
0.02
-0.07
-0.23
-0.16
0.13
-0.08
0.00
-0.14
-0.17
0.00
-0.07
0.90
0.40
0.30
0.33
0.97
0.18
0.82
0.28
0.93
0.29
0.26
8.63
4.36
5.75
2.97
1.28
1.51
7.63
3.79
3.64
2.17
1.51
2.43
1.44
0.95
0.40
0.30
0.94
1.32
1.29
0.91
0.28
1.20
0.70
0.26
7.36
6.96
5.75
3.92
2.83
4.39
8.18
6.14
3.64
4.90
2.77
2.43
Emerging Euro
Brazil
02/15
7.38
BBBBaa2
BBB 111.75
0.73
0.00
0.00
0.09
Mexico
02/20
5.50
BBB+
A3
BBB+ 111.50
0.20
-0.01
0.04
-1.63
Mexico
04/23
2.75
BBB+
A3
BBB+ 110.02
0.83
0.01
-0.09
-1.33
Bulgaria
03/28
3.00
BB+
Baa2
BBB 114.43
1.47
0.01
-0.09
-0.91
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.
FTSE
Sterling Corporate (�)
Euro Corporate (?)
Euro Emerging Mkts (?)
Eurozone Govt Bond
116.06
107.83
658.72
112.71
0.07
0.00
-3.93
-0.23
-
-
0.40
0.18
0.33
0.52
0.64
0.45
-20.62
-0.18
Index
Day's
change
Week's
change
Month's
change
Series
high
Series
low
369.26
85.00
70.05
111.86
-12.07
-1.98
-2.51
-3.89
35.21
7.21
2.21
10.86
40.34
7.01
-0.87
12.50
390.04
90.43
93.03
121.66
288.69
67.59
64.22
80.36
BONDS: BENCHMARK GOVERNMENT
Austria
Belgium
CREDIT INDICES
Markit iTraxx
Crossover 5Y
Europe 5Y
Japan 5Y
Senior Financials 5Y
Markit CDX
Emerging Markets 5Y
176.96
-0.16
1.01
-17.02
193.98
172.46
Nth Amer High Yld 5Y
314.51
0.25
-4.71
-22.55
337.70
308.36
Nth Amer Inv Grade 5Y
50.62
0.19
-1.25
-6.78
60.00
50.43
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.
Denmark
Finland
France
Germany
Greece
Ireland
Italy
BONDS: INDEX-LINKED
Price
Month
Value
No of
Yield
Dec 12
Dec 12
Prev
return
stock
Market
stocks
Can 4.25%' 21
116.29
0.129
0.139
0.07
5.18
74389.74
7
Fr 2.25%' 20
111.01
-1.823
-1.819
0.06
20.31 234433.32
15
Swe 0.25%' 22
115.23
-2.049
-2.039
0.06
28.53 242233.61
8
UK 2.5%' 20
365.73
-2.409
-2.429
0.00
6.58 651961.65
28
UK 2.5%' 24
365.46
-1.968
-1.990
0.53
6.82 651961.65
28
UK 2%' 35
269.87
-1.663
-1.663
1.01
9.08 651961.65
28
US 0.625%' 21
101.77
0.131
0.142
0.02
35.84 1282013.02
38
US 3.625%' 28
130.70
0.563
0.142
0.69
16.78 1282013.02
38
Representative stocks from each major market Source: Merill Lynch Global Bond Indices ? Local currencies. ? Total market
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
amount.
BONDS: TEN YEAR GOVT SPREADS
Spread Spread
Bid
vs
vs
Yield Bund T-Bonds
Australia
2.60
Austria
0.47
Belgium
0.52
Canada
1.92
Denmark
0.41
Finland
0.48
France
0.66
Germany
0.32
Greece
4.24
Ireland
0.52
Data provided by SIX Financial Information
Canada
2.28
0.16
0.21
1.60
0.09
0.16
0.34
0.00
3.93
0.21
0.21
-1.91
-1.86
-0.47
-1.98
-1.91
-1.73
-2.07
1.85
-1.86
Netherlands
New Zealand
Norway
Portugal
Spain
Spread Spread
Bid
vs
vs
Yield Bund T-Bonds
Italy
Japan
Netherlands
Norway
Portugal
Spain
Switzerland
United Kingdom
United States
Japan
1.77
0.04
0.41
1.49
1.87
1.48
-0.15
1.25
2.39
1.45
-0.28
0.10
1.17
1.55
1.16
-0.46
0.94
2.07
-0.62
-2.35
-1.97
-0.90
-0.52
-0.91
-2.54
-1.14
0.00
Sweden
Switzerland
United Kingdom
United States
Data provided by SIX Financial Information
P/E MCap m
Stock
52 Week
High
Low
Price Day Chg
Yld
Lockheed?
319.25
3.36 322.19 247.01
Lowes
85.50
0.51 88.55 70.49
Lyondell
107.04
0.05 108.13 78.01
Marathon Ptl
64.33 -0.16 65.41 46.88
Marsh&M
83.76 -0.90 86.54 66.75
MasterCard
152.20 -0.31 154.65 102.91
McDonald's? 173.68
1.45 174.44 118.18
McKesson?
154.73
0.18 169.29 133.82
Medtronic
81.81 -0.20 89.72 69.35
Merck
56.88 -0.19 66.80 53.63
Metlife
53.37 -0.30 55.91 44.17
Microsoft
85.56 -0.02 86.20 61.95
Mnstr Bvrg
63.21
0.30 63.57 41.02
MondelezInt
42.72 -0.17 47.23 39.19
Monsanto
117.85
0.19 122.80 104.08
MorganStly
54.08
0.23 54.25 40.06
MylanNV
39.42
0.13 45.87 29.39
Netflix
187.70
1.97 204.38 122.50
NextEraE?
156.18 -0.89 159.40 114.85
Nike?
63.37
1.20 63.45 50.35
NorfolkS
143.10
1.64 143.24 105.89
Northrop?
310.24
2.96 311.08 223.88
NXP
115.91
0.27 118.20 96.00
Occid Pet?
70.04
0.01 73.51 57.20
Oracle
50.16 -0.23 53.14 38.30
Pepsico?
117.72
0.32 119.39 101.06
Perrigo
85.93
0.01 91.73 63.68
Pfizer
36.75
0.17 36.82 30.90
Phillips66
99.94
0.87 100.30 75.14
PhilMorris
107.96
0.66 123.55 88.90
PNCFin
145.82 -0.03 146.24 112.61
PPG Inds
116.76
0.87 119.85 93.80
Praxair?
151.30 -0.04 156.40 115.00
Priceline
1728.9
5.18 2067.99 1459.49
ProctGmbl
90.72
0.87 94.67 83.24
Prudntl?
115.43 -0.96 117.99 97.88
PublStor?
211.83
0.11 232.21 192.15
Qualcomm?
65.09
0.23 70.24 48.92
Raytheon
190.04
3.15 191.36 141.16
Regen Pharm 384.80
3.08 543.55 340.09
ReynoldsAm
65.40 -1.49
S&P Global
170.35 -2.22 174.07 107.21
Salesforce
103.87
0.20 109.19 68.23
Schlmbrg?
63.85 -0.33 87.84 61.02
Sempra Energy 114.79
0.10 122.98 99.48
Shrwin-Will
407.70
0.68 413.98 265.14
SimonProp
166.03 -0.32 188.10 150.15
SouthCpr
42.88
0.60 44.69 31.55
Starbucks
59.77
0.50 64.87 52.58
StateSt
100.63
2.45 100.90 74.45
Stryker
153.76
0.09 160.62 116.27
Sychrony Fin
37.52
0.16 38.06 26.01
Target
62.08
1.06 78.37 48.56
TE Connect
95.92
0.27 96.68 66.20
Tesla Mtrs
342.30
1.27 389.61 193.00
TexasInstr
98.83
0.40 99.79 71.77
TheTrvelers? 133.84 -0.51 137.95 113.76
ThrmoFshr
191.45
1.96 201.20 139.88
TimeWrnr
90.48 -0.17 103.89 85.88
TJX Cos
73.93
0.31 80.92 66.44
T-MobileUS
64.19
0.71 68.88 54.60
UnionPac?
132.12
1.42 132.20 101.06
UPS B
119.20
1.04 125.16 102.12
USBancorp
55.54
0.04 56.61 49.54
UtdHlthcre
224.00
1.51 231.77 156.09
UtdTech
124.67
1.19 124.79 106.85
ValeroEngy
87.56
0.62 88.12 60.69
Verizon
52.68 -0.51 54.83 42.80
VertexPharm 144.16
3.25 167.86 71.46
VF Cp?
72.90
0.37 74.87 48.05
Viacom
29.47 -0.12 46.72 22.13
Visa Inc
113.72
0.26 114.37 77.19
Walgreen
71.07 -0.94 88.00 63.82
WalMartSto?
97.68
0.98 100.13 65.28
WellsFargo
60.36
0.03 60.56 49.27
Williams Cos?
28.98 -0.10 32.69 26.82
Yum!Brnds
82.47
0.48 84.29 62.36
Venezuela (VEF)
Bco de Vnzla
1800 100.00
1950 181.00
Bco Provncl
115000-15000.00 144000
3200
Mrcntl Srvcs 700000-40000.00 760000 11250
5.50 17.29 231409.61
1.94 29.90 52025.78
1.38 197.74 107106.82
0.85 -8.48 24541.87
1.17 16.84 306041.51
0.90 34.60 35108.97
2.44 18.76 39643.28
1.32 47.96 50002.85
21.94 225500.79
20.41 70095.09
1.46 16.23 56454.35
1.88 24.34 82981.51
1.81 27.30 175499.12
2.45 25.01 103938.61
1.65 13.51 46700.25
3.01 17.66 18976.89
2.36 17.26 35349.55
2.07 103.08 88561.81
1.23 15.60 21062.28
25.46 85055.74
0.61 32.62 68369.4
- 178.74 81426.13
3.60 34.98 226937.2
1.87 17.93 69373.33
0.02 22.92 51436.43
2.97 19.79 188970.94
1.05 14.75 201512.61
1.68 34.74 51914.85
3.19 44.07 194456.86
0.42 22.21 42136.08
2.15 28.36 64224.62
1.57 18.68 182418.33
2.01 -25.88 61933.7
1.83 14.17 28335.62
1.05 29.88 82324.47
3.39 93.34 45319.99
1.30 30.14 52050.43
2.67 14.90 72742.99
0.58 28.08 65273.06
1.59 25.16 49015.67
13424.91
1.56 10.28 38165.45
0.62 12.81 20179.78
1.66 12.93 27224.48
1.44 19.01 162660.62
3.52 24.89 53908.49
81542.6
3.93 22.61 61322.13
3.01 12.41 34573.88
5.64 39098.3
1.09 30.61 39014.99
2.84 26.58 43155.97
0.675035.40 58004.06
3.05 32.20 24158.45
3.14 18.59 39659.19
11.42 38790.89
3.86 32.38 351849.29
34.77 426163.41
0.68 21.17 65039.22
4.70 11.60 49592.18
1.80 14.80 24571.36
1.68 18.03 59092.54
5.35 20.85 154883.44
3.56 19.41 31919.31
3.62 8.87 59358.83
2.63 8.78 100425.96
1.07 13.64 98144.05
1.59 181.05 39264.34
12.41 30682.19
2.53 14.87 35265.87
0.85 65.14 24697.05
1.85 25.21 213534.51
1.70 23.76 118206.22
0.69 20.11 36572.18
3.73 12.99 143293.99
1.65 25.36 56408.92
41.07 31349.12
1.08 25.86 41437.4
2.45 15.27 202807.8
0.90 41.50 40246.96
2.29 24.88 382829.11
2.62 21.84 35226.68
1.90 15.50 371121.85
3.32 19.01 41190.78
2.79 32.00 39852.16
3.06 24.73 96039.63
1.82 15.40 23276.76
4.11 17.81 16588.72
4.37 28.72 55803.94
36.81 7050.58
2.34 42.14 97050.49
P/E MCap m
2.27 26.00 91539.89
1.79 20.43 70944.53
3.26 11.43 42223.03
2.23 20.44 31419.55
1.70 23.04 42744.94
0.58 35.62 158831.14
2.16 25.24 140680.21
0.76 7.57 32257.25
2.19 22.34 110722.9
3.29 54.92 154965.97
2.99 -66.06 56161.21
1.82 30.36 660060.34
46.33 35648.12
1.84 29.79 63832.81
1.90 22.46 51877.57
1.57 15.00 97771.19
24.14 21140.19
- 222.53 81223.63
2.43 17.64 73466.69
1.18 26.01 82525.02
1.68 22.66 40947.69
1.23 23.04 54006.12
20.21 40105.19
4.34 99.05 53597.78
1.41 21.03 209342.07
2.64 24.42 167413.29
0.72 -9.42 12102.44
3.41 22.78 219026.19
2.65 25.28 50643.64
3.96 23.22 167683.44
1.64 17.90 69382.27
1.41 22.77 29712.89
2.05 27.03
43318
24.34 84317.67
3.06 23.90 230140.15
2.55 11.61 48941.64
3.79 29.38 36867.15
3.37 39.61 95946.01
1.66 25.55 54938.44
35.03 40607.24
0.93 25.15 43439.25
75025.23
3.35 -41.50 88448.96
2.80 25.50 28844.13
0.83 34.66 38125.62
4.17 29.40 51610.82
0.91 28.14 33147.46
1.67 30.46 85033.64
1.54 17.48 37317.3
1.10 32.99 57542.78
1.43 14.32 29358.92
3.92 12.99 33744.99
1.60 20.62 33729.04
- -40.25 57529.47
2.02 23.19 97401.77
2.10 13.00 36933.19
0.31 32.64 76770.56
2.22 17.17 70447.09
1.56 19.86 46747.07
25.28 53403.78
1.82 23.48 104000.74
2.73 29.34 81897.25
2.04 16.60 92159.84
1.22 25.56 217071.11
2.14 19.35 99557.71
3.07 19.03 38314.62
4.39 13.56 214904.94
- 187.99 36458.47
2.30 29.16 28806.37
2.70 6.34 10397.81
0.58 40.78 205930.2
2.23 18.13 70384.58
2.09 25.82 294456.28
2.52 15.66 297228.42
3.78 51.05 23958.29
1.70 25.32 27791.87
1965.04
- 101.38 3711.71
0.001142.66 12756.35
Closing prices and highs & lows are in traded currency (with variations for that
country indicated by stock), market capitalisation is in USD. Highs & lows are
based on intraday trading over a rolling 52 week period.
? ex-dividend
? ex-capital redistribution
# price at time of suspension
Dec 13
US$
FleetBoston Financial Corp.
SunTrust Banks Inc.
Nicor Gas Company
Cincinnati Financial Corporation
Dover Corporation
United Utilities PLC
Euro
AT&T Inc.
AT&T Inc.
Citigroup Inc.
HBOS plc
Yen
Enagas Transportes, S.A.U.
� Sterling
Electricite de France (EDF)
HSBC Holdings plc
Red
date Coupon
Ratings
M*
Bid
yield
Day's
chge
yield
Mth's Spread
chge
vs
yield
US
F*
Bid
price
01/28
01/28
02/28
05/28
06/28
08/28
6.88
6.00
6.58
6.90
6.65
6.88
BBB
BBB+
A
BBB+
ABBB+
Baa2
Baa1
Aa3
A3
A3
Baa1
AAAAAAA-
122.02
115.24
116.82
123.03
120.17
123.28
4.22
4.18
4.55
4.20
4.29
4.19
0.02
0.02
0.02
0.02
0.02
0.02
-0.13
-0.04
0.03
-0.04
0.12
-0.01
1.83
1.79
2.16
1.81
1.90
1.81
12/29
12/29
02/30
03/30
2.60
2.60
4.25
4.50
BBB+
BBB+
BBB
BBB-
Baa1
Baa1
Baa3
Baa1
AAAA-
105.49
105.53
117.52
118.29
2.09
2.07
2.17
2.25
0.02
0.01
0.01
0.01
0.01
-0.05
-0.06
-0.13
-
09/39
3.23
A-
Baa2
A-
106.57
2.85
0.00
0.01
-
05/28
08/28
6.25
2.63
AA
A3
A2
AAA-
132.22
100.85
2.67
2.53
0.01
0.01
-0.03
-0.16
0.29
0.15
S*
Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor?s, M Moody?s, F - Fitch.
GILTS: UK CASH MARKET
Dec 13
Day Chng
Prev
52 wk high
52 wk low
VIX
9.85
-0.07
9.92
17.28
8.56
VXD
10.96
-0.45
11.41
27.74
3.59
VXN
12.10
-0.76
12.86
21.03
9.75
VDAX
? CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility.
? Deutsche Borse. VDAX: DAX Index Options Volatility.
Australia
Yld
BONDS: GLOBAL INVESTMENT GRADE
Day's
chge
yield
VOLATILITY INDICES
BOND INDICES
INTEREST RATES: OFFICIAL
Rate
Fed Funds
Prime
Discount
Repo
Repo
O'night Call
Libor Target
Yld
FT 500: BOTTOM 20
FT 500: TOP 20
Dec 13
US
US
US
Euro
UK
Japan
Switzerland
52 Week
High
Low
Red
Date Coupon
10/19
2.75
11/28
2.75
10/19
0.25
04/27
0.50
09/19
3.00
06/27
0.80
02/20
1.25
06/28
2.00
11/20
0.25
11/27
0.50
09/19
1.75
09/27
0.50
11/20
0.25
05/23
1.75
05/28
0.75
10/20
0.25
08/23
2.00
08/27
0.50
08/48
1.25
04/19
4.75
01/28
3.75
10/19
5.90
05/26
1.00
06/20
0.35
08/22
0.90
08/27
2.05
03/48
3.45
11/19
0.10
11/22
0.05
09/27
0.10
09/47
0.80
01/20
0.25
07/27
0.75
04/20
3.00
04/27
4.50
05/19
4.50
02/27
1.75
06/20
4.80
04/27
4.13
01/19
0.25
10/27
1.45
07/19
1.50
11/26
1.00
07/20
2.25
06/27
3.25
07/20
2.00
07/23
0.75
07/27
1.25
07/47
1.50
11/19
1.75
10/22
2.00
11/27
2.25
11/47
2.75
Bid
Price
101.63
101.45
101.59
100.27
106.50
102.57
99.33
100.80
102.23
100.89
99.54
100.26
102.22
110.35
100.92
102.60
112.74
101.75
102.51
103.70
96.03
112.08
103.92
101.12
101.72
102.53
108.52
100.49
99.65
100.63
99.76
102.01
103.15
102.37
113.66
105.73
102.25
112.12
119.17
100.68
99.73
99.23
104.63
107.80
132.96
103.82
99.28
99.99
93.39
99.84
99.27
98.80
99.87
Bid Day chg Wk chg Month
Year
Yield
yield
yield chg yld chg yld
1.85
-0.01
0.07
0.07
-0.04
2.60
-0.01
0.00
-0.04
0.00
-0.61
0.00
0.00
0.00
0.00
0.47
0.03
0.04
-0.04
0.00
-0.61
0.00
0.00
0.00
0.00
0.52
0.01
0.03
-0.06
0.00
1.57
0.02
0.06
0.10
0.00
1.92
0.00
0.01
-0.05
0.00
-0.51
0.00
0.00
0.00
0.00
0.41
0.00
0.03
-0.06
0.00
2.03
0.01
0.02
0.13
0.36
0.48
0.02
0.02
-0.04
0.00
-0.50
0.00
0.00
0.00
0.00
-0.14
0.00
0.00
0.00
0.00
0.66
0.02
0.04
-0.08
0.00
-0.66
0.00
0.00
0.00
0.00
-0.23
0.00
0.00
0.00
0.00
0.32
0.00
0.02
-0.06
0.00
1.15
0.01
0.04
-0.11
0.00
1.92
-0.11
-0.40
-0.93
-5.70
4.24
-0.10
-0.54
0.00
0.00
-0.60
0.00
0.00
0.00
0.00
0.52
0.01
0.05
-0.07
-0.40
-0.10
0.00
0.00
0.00
0.00
0.52
0.07
0.07
-0.06
0.00
1.77
0.07
0.05
-0.05
0.00
3.04
0.07
0.08
-0.05
0.00
-0.15
0.00
0.00
0.00
0.00
0.12
-0.01
-0.01
0.00
0.00
0.04
0.01
-0.01
-0.01
0.00
0.81
0.00
-0.03
-0.01
0.00
-0.70
0.00
0.00
0.00
0.00
0.41
0.01
0.03
-0.06
0.00
1.96
-0.01
0.01
-0.03
-0.43
2.82
-0.03
0.05
-0.02
-0.46
0.48
0.00
-0.02
-0.06
-0.26
1.49
0.01
0.04
-0.04
0.00
-0.04
0.00
0.00
0.00
0.00
1.87
0.04
0.00
-0.12
0.00
-0.35
0.00
0.00
0.00
0.00
1.48
0.02
0.05
-0.06
0.00
2.00
0.01
0.05
0.16
0.00
0.47
0.01
0.04
-0.04
-0.13
-0.76
0.00
0.00
0.00
0.00
-0.15
0.00
0.00
0.00
0.00
0.52
0.01
-0.01
0.00
0.05
0.88
0.00
0.00
-0.02
0.00
1.25
-0.01
-0.01
-0.08
0.00
1.79
-0.01
-0.01
-0.07
-0.24
1.83
0.01
0.03
0.00
0.00
2.16
-0.01
0.04
0.12
0.00
2.39
-0.02
0.05
0.06
0.00
2.76
-0.02
0.03
-0.01
0.00
Red
52 Week
Change in Yield
Price �
Yield
Day
Week
Month
Year
High
Low
Tr 5pc '18
101.08
0.27
-6.90
-10.00
-22.86 145.45 106.01 101.08
Tr 4.5pc '19
104.98
0.44
4.76
-2.22
-4.35 238.46 109.80 104.98
Tr 4.75pc '20
109.52
0.45
4.65
-2.17
-2.17
45.16 114.50 109.51
Tr 1.5pc '21
102.85
0.57
3.64
-1.72
-5.00
1.79 104.73 102.71
Tr 4pc '22
114.04
0.63
5.00
0.00
-7.35
-5.97 118.04 113.88
Tr 5pc '25
128.18
0.96
2.13
-1.03
-9.43
-19.33 132.93 127.35
Tr 1.25pc '27
100.03
1.25
1.63
-0.79
-9.42
-18.83 131.42
98.24
Tr 4.25pc '32
135.16
1.53
0.00
-1.29
-8.38
-16.39 139.13 131.34
Tr 4.25pc '36
140.16
1.68
0.00
-1.18
-7.69
-14.72 144.09 134.98
Tr 4.5pc '42
154.30
1.79
0.00
-1.10
-6.77
-12.68 159.30 147.41
Tr 3.75pc '52
153.20
1.71
0.00
-0.58
-6.04
-11.86 159.09 143.66
Tr 4pc '60
172.25
1.62
0.00
-0.61
-6.90
-12.43 179.15 160.01
Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per �0 nominal of stock.
Dec 13
Amnt

35.24
36.35
33.31
32.46
37.95
35.08
20.87
35.44
29.76
26.64
23.59
23.61
GILTS: UK FTSE ACTUARIES INDICES
Price Indices
Fixed Coupon
1 Up to 5 Years
2 5 - 10 Years
3 10 - 15 Years
4 5 - 15 Years
5 Over 15 Years
7 All stocks
Index Linked
1 Up to 5 Years
2 Over 5 years
3 5-15 years
4 Over 15 years
5 All stocks
Yield Indices
5 Yrs
10 Yrs
15 Yrs
Day's
chg %
-0.03
0.03
0.09
0.05
0.24
0.10
Dec 13
94.48
182.70
212.74
189.50
336.94
180.05
Dec 13
310.69
709.94
477.82
911.03
641.71
Dec 13
0.70
1.28
1.65
Day's
chg %
-0.16
-0.48
-0.26
-0.56
-0.45
Dec 12
0.69
1.29
1.66
Yr ago
0.63
1.47
1.93
Total
Return
2417.42
3480.25
4242.12
3667.56
5162.76
3575.57
Month
chg %
-0.57
0.30
-0.11
0.43
0.22
20 Yrs
45 Yrs
Year's
chg %
-0.90
3.63
1.19
4.43
3.24
Return
1 month
0.11
0.74
1.29
0.97
2.30
1.23
Total
Return
2458.18
5299.16
3710.63
6649.96
4862.87
Dec 13
1.80
1.60
Return
1 year
-0.06
2.22
4.56
2.95
6.77
3.65
Yield
0.58
1.06
1.45
1.23
1.71
1.54
Return
1 month
-0.57
0.30
-0.11
0.43
0.22
Return
1 year
0.57
4.17
2.26
4.80
3.86
Dec 12
1.81
1.62
inflation 0%
inflation 5%
Dec 13
Dur yrs Previous
Yr ago
Dec 13
Dur yrs Previous
Real yield
Up to 5 yrs
-1.98
3.29
-2.03
-2.28
-2.44
3.31
-2.49
Over 5 yrs
-1.60
24.86
-1.62
-1.53
-1.64
24.97
-1.66
5-15 yrs
-1.72
9.51
-1.74
-1.75
-1.85
9.54
-1.88
Over 15 yrs
-1.59
30.06
-1.61
-1.51
-1.61
30.11
-1.63
All stocks
-1.61
22.93
-1.63
-1.54
-1.65
23.06
-1.67
See FTSE website for more details www.ftse.com/products/indices/gilts
�17 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
Gilt Closing Prices information contained herein is proprietary to
Tradeweb; may not be copied or re-distributed; is not warranted to be
accurate, complete or timely; and does not constitute investment advice.
Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Yr ago
2.08
1.86
Yr ago
-2.98
-1.57
-1.90
-1.54
-1.58
All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
loss arising from the reliance on or use of the listed information. For all queries e-mail
ft.reader.enquiries@morningstar.com
Data provided by Morningstar | www.morningstar.co.uk
17
FINANCIAL TIMES
Thursday 14 December 2017
MANAGED FUNDS SERVICE
Fund
Bid
Offer D+/- Yield
Fund
Bid
Offer D+/- Yield
Fund
Bid
Offer D+/- Yield
GAM
funds@gam.com, www.funds.gam.com
Regulated
LAPIS TOP 25 DIV.YLD-D
� 111.03
-
0.79 1.84
GYS Investment Management Ltd
Algebris Investments
Regulated
Algebris Financial Credit Fund - Class I EUR
Algebris Financial Income Fund - Class I EUR
Algebris Financial Equity Fund - Class B EUR
Algebris Asset Allocation Fund - Class B EUR
Algebris Macro Credit B EUR Acc
Algebris Core Italy Fund - Class R EUR
(IRL)
? 155.70
? 146.82
? 130.36
? 98.18
? 110.78
? 98.30
-
-0.76
0.38
0.34
-0.05
0.23
0.02
0.00
0.00
0.00
0.00
0.00
-
The Antares European Fund Limited
Other International
AEF Ltd Usd (Est)
AEF Ltd Eur (Est)
$ 751.24
? 743.11
-
-0.59 -0.98 0.00
Arisaig Partners
Other International Funds
Arisaig Africa Consumer Fund Limited
Arisaig Asia Consumer Fund Limited
Arisaig Global Emerging Markets Consumer Fund
Arisaig Global Emerging Markets Consumer UCITS
Arisaig Global Emerging Markets Consumer UCITS STG
Arisaig Latin America Consumer Fund
$
$
$
?
�
$
12.98
92.62
11.54
12.70
14.21
26.50
-
0.05
-0.76
-0.03
0.04
0.01
-0.12
(IRL)
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland
Tel: 44 (0) 207 766 7130
FCA Recognised
-
-0.05
-0.03
0.07
0.03
0.00
Ashmore Sicav
0.00
0.00
0.00
0.00
0.00
(LUX)
2 rue Albert Borschette L-1246 Luxembourg
FCA Recognised
Ashmore SICAV Emerging Market Debt Fund $ 101.91
Ashmore SICAV Emerging Market Frontier Equity Fund $ 189.88
Ashmore SICAV Emerging Market Total Return Fund $ 90.08
Ashmore SICAV Global Small Cap Equity Fund $ 162.36
EM Mkts Corp.Debt USD F
$ 99.63
EM Mkts Loc.Ccy Bd USD F
$ 86.12
EM Short Duration Fund Acc USD $ 136.80
-
0.03
1.00
-0.21
-0.71
0.04
-0.57
0.13
Regulated
Cheyne Convertibles Absolute Return Fund (D) ? 1459.30
Cheyne Global Credit Fund (D)
? 126.04
Cheyne European Mid Cap Fund (W) ? 1081.06
-
(IRL)
-1.56 0.00
-0.01 0.00
-3.46 0.00
Cheyne Capital Management (UK) LLP
Other International Funds
Cheyne European Event Driven Fund (M) ? 145.75 - -0.51
price updated (D) daily, (W) weekly, (M) monthly
DAVIS Funds SICAV
Regulated
Davis Value A
Davis Global A
(LUX)
$ 52.07
$ 39.59
-
0.05 0.00
-0.23 0.00
6.54
0.90
5.77
0.00
7.09
4.52
0.00
-
-8.26
-4.84
-2.54
-2.30
-1.46
-1.40
-1.49
Atlantas Sicav
Regulated
American Dynamic
American One
Bond Global
Eurocroissance
Far East
(LUX)
$ 4569.50
$ 4198.16
? 1412.91
? 1003.23
$ 959.83
-
11.08
49.19
6.70
6.67
7.71
Bank of America Cap Mgmt (Ireland) Ltd
Regulated
Global Liquidity USD
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$
1.00
-
0.00
0.00
0.00
0.00
0.00
(IRL)
0.00 0.61
Barclays Investment Funds (CI) Ltd
(JER)
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800
FCA Recognised
Bond Funds
Sterling Bond F
�
0.48
-
0.00 2.75
BlackRock
Regulated
BlackRock UK Property
BLK Intl Gold & General
(JER)
� 43.27
$ 5.55
0.17 1.61
5.85 -0.01 0.00
BLI - Banque de Luxembourg Investments S.A.
FCA Recognised
BL-Equities Europe B
BL-Equities America B
BL-Equities Japan B
BL-Emerging Markets B
BL-Global Equities B
BL-Global 30 B
BL-Global 50 B
BL-Global 75 B
BL-Global Flexible EUR B
? 7086.71
$ 7065.37
� 20428.00
? 168.33
? 836.70
? 1387.53
? 1722.86
? 2423.78
? 163.88
-
38.25
20.80
-83.00
0.64
4.63
1.45
3.82
8.49
0.32
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
CCLA Investment Management Ltd
Dodge & Cox Worldwide Funds
(IRL)
6 Duke Street,St.James,London SW1Y 6BN
www.dodgeandcox.worldwide.com 020 3713 7664
FCA Recognised
Dodge & Cox Worldwide Funds plc - Global Bond Fund
EUR Accumulating Class
? 12.71 0.03 0.00
EUR Accumulating Class (H)
? 10.34 0.00 0.00
EUR Distributing Class
? 11.26 0.02 4.06
EUR Distributing Class (H)
? 9.15 0.00 3.81
GBP Distributing Class
� 12.09 0.02 3.97
GBP Distributing Class (H)
� 9.38 - -0.01 3.76
USD Accumulating Class
$ 10.76 - -0.01 0.00
Dodge & Cox Worldwide Funds plc-Global Stock Fund
USD Accumulating Share Class $ 21.65 0.10 0.00
GBP Accumulating Share Class � 26.74 0.16 0.00
GBP Distributing Share class
� 19.18 0.11 0.68
EUR Accumulating Share Class ? 27.68 0.19 0.00
GBP Distributing Class (H)
� 11.77 0.06 Dodge & Cox Worldwide Funds plc-International Stock Fund
USD Accumulating Share Class $ 17.53 0.06 0.00
EUR Accumulating Share Class ? 17.57 0.10 0.00
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
USD Accumulating Share Class $ 25.30 0.14 0.00
GBP Accumulating Share Class � 29.55 0.21 0.00
GBP Distributing Share Class
� 18.54 0.13 0.69
EUR Accumulating Share Class ? 27.94 0.23 0.00
GBP Distributing Class (H)
� 11.51 0.07 -
1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Fund information, dealing and administration: funds@dragoncapital.com
Other International Funds
Vietnam Property Fund (VPF) NAV $
0.80
-
www.dsmsicav.com
Regulated
DSM Global Growth I2 Acc
DSM Global Growth I1 Acc
DSM US Large Cap Growth I3
DSM US Large Cap Growth A
DSM US Large Cap Growth I2
? 183.98
? 122.20
$ 123.95
$ 144.94
? 123.73
(LUX)
-
(IRL)
27-31 Melville Street, Edinburgh EH3 7JF
Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230
FCA Recognised
Edinburgh Partners Opportunities Fund PLC
Emerging Opportunities I USD $ $ 1.41 European Opportunities I EUR
? 2.81 European Opportunities I GBP
� 2.46 European Opportunities A EUR
? 2.74 Global Opportunities I USD
$ 2.00 Global Opportunities I GBP
� 1.51 Pan European Opportunities I EUR ? 1.90 -
(UK)
1-6 Lombard Street, EC3V 9JU. Dealing 0345 606 6180
Authorised Inv Funds
Asia Pacific C Acc
1168.99 4.06
Balance C Acc
182.75 0.05
Corporate Bond C Acc
262.59 - -0.02
European C Acc
142.05 - -0.45
Global Bond C Inc
110.19 - -0.17
Global Equity C Acc
848.23 2.73
Global Equity Income C Inc
157.16 - -0.26
Global High Yield Bond C Inc
98.42 - -0.01
Japan C Acc
151.21 0.02
Managed 0%-35% C Acc
104.66 0.05
North American C Acc
1281.47 2.14
Portfolio III C Acc
124.51 - -0.03
Portfolio IV C Acc
129.00 0.04
Portfolio V C Acc
132.92 0.16
Portfolio VI C Acc
136.13 0.22
Portfolio VII C Acc
135.56 0.30
Short duration Corporate Bond C Acc 101.72 0.00
Strategic Return C Acc
120.23 - -0.45
Total Return C Acc
116.03 - -0.31
UK Equity & Bond C Inc
256.17 0.32
UK Equity C Inc
111.37 0.35
UK Equity Income C Inc
451.18 0.94
UK Government Bond C Inc
112.75 - -0.06
1.10
1.59
3.67
1.35
2.49
1.14
3.62
5.61
0.82
0.41
2.10
2.03
1.78
1.80
1.67
2.03
0.00
2.07
4.09
2.19
3.78
1.62
(UK)
65 Gresham Street, London, EC2V 7NQ
Order Desk and Enquiries: 0345 922 0044
Authorised Inv Funds
CF Heartwood Balanced MA B Acc
145.83 0.07 0.54
CF Heartwood Cautious MA B Acc
141.66 0.02 0.45
CF Heartwood Defensive MA B Acc 116.22 - -0.02 0.07
CF Heartwood Growth MA B Acc
175.93 0.17 0.51
CF Heartwood Income MA B Inc
113.44 0.08 3.30
CF Heartwood Income Plus MA B Inc
119.29 0.20 3.78
CF Seneca Diversified Growth A Acc 271.35 0.45 2.06
CF Seneca Diversified Growth B Acc 162.67 0.27 2.65
CF Seneca Diversified Growth N Acc 160.27 0.27 2.43
CF Seneca Diversified Income A Inc
95.07 0.09 4.78
CF Seneca Diversified Income B Inc 114.00 0.11 4.77
CF Seneca Diversified Income N Inc 112.44 0.11 4.77
Investment Adviser - Morant Wright Management Limited
CF Morant Wright Japan A Acc
418.22 - -0.59 0.00
CF Morant Wright Japan A Inc
409.46 - -0.56 0.41
CF Morant Wright Japan B Acc
449.57 - -0.62 0.87
CF Morant Wright Japan B Inc
416.59 - -0.57 0.88
CF Morant Wright Nippon Yield A Acc
436.06 0.30 2.08
CF Morant Wright Nippon Yield A Inc
360.20 0.25 2.11
CF Morant Wright Nippon Yield B Acc
456.78 0.32 2.08
CF Morant Wright Nippon Yield B Inc
377.41 0.27 2.13
(IRL)
-
7.87 1.28
-7.15 1.41
1.35 1.45
Charles Schwab Worldwide Funds Plc
Regulated
Schwab USD Liquid Assets Fd
$
1.00
-
1.26
1.68
1.65
1.36
2.12
2.12
-
(IRL)
5 Kensington Church St, London W8 4LD 020 7368 4220
FCA Recognised
Ennismore European Smlr Cos NAV � 125.58 - -0.21 0.00
Ennismore European Smlr Cos NAV ? 142.63 0.17 0.00
Ennismore European Smlr Cos Hedge Fd
? 519.37
-
1.14 0.00
Equinox Fund Mgmt (Guernsey) Limited
Regulated
Equinox Russian Opportunities Fund Limited $ 183.14
Regulated
Smaller Cos Cls One Shares
Smaller Cos Cls Two Shares
Smaller Cos Cls Three Shares
Smaller Cos Cls Four Shares
?
?
?
?
43.12
29.21
14.76
18.96
-
-
(GSY)
-1.92 0.00
(CYM)
-0.06
-0.04
-0.02
-0.02
0.00
0.00
0.00
0.00
Regulated
(LF) Absolute Return
(LF) Eq Emerging Europe
(LF) Eq Mena Fund
(LF) Greek Government Bond
(LF) Greek Corporate Bond
(LF) FOF Dynamic Fixed Inc
(LF) FOF Real Estate
?
?
?
?
?
?
?
1.36
0.90
12.78
27.78
14.56
12.20
16.39
-
0.00
0.01
0.15
0.26
0.05
0.02
0.10
0.00
0.00
0.00
0.00
0.00
0.00
0.00
FIL Investment Services (UK) Limited (1200)F (UK)
130, Tonbridge Rd, Tonbridge TN11 9DZ
Callfree: Private Clients 0800 414161
Broker Dealings: 0800 414 181
OEIC Funds
Cash Fund Y-Acc-GBP
Cash Fund Y-Inc-GBP
Fidelity Short Dated Corporate Bond Fund Y - Gross Inc
Fidelity Short Dated Corporate Bond Fund Y - Gross Acc
Target 2020 A-ACC-GBP
Target 2025 A-ACC-GBP
Target 2030 A-ACC-GBP
Institutional OEIC Funds
Europe (ex-UK) Fund ACC-GBP
UK Gilt Fund Inc
UK Long Corporate Bond - Gross Inc
� 1.00
� 1.00
� 9.88
� 10.31
� 0.66
� 1.63
� 1.84
� 5.32
� 1.37
� 12.53
-
0.00
0.00
-0.01
0.00
0.00
0.00
0.00
0.08
0.17
3.31
1.17
0.45
0.52
0.57
-0.01 1.10
-0.01 1.76
-0.01 3.19
Findlay Park Funds Plc
(IRL)
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
FCA Recognised
American Fund USD Class
$ 107.28 0.19
American Fund GBP Hedged
� 57.42 0.11
American Fund GBP Unhedged
� 80.52 0.37
Latin American Fund USD Class $ 16.68 - -0.07
Latin American Fund GBP Unhedged � 12.72 - -0.04
0.00
0.00
0.00
0.76
0.42
The First Investor QSCC
5th Floor, Barwa Bank Building, Grand Hamad Street
, P.O. Box 16034, Doha, State of Qatar
+ 974 4459 6111
http://www.tfi.com.qa/
Other International Funds
TFI GCC Equity Opportunities Fund (Q)QAR 1280.10 0.04 0.00
5.68
5.75
3.29
3.76
6.12
6.19
3.55
4.05
-0.05
-0.04
-0.02
0.00
0.00
0.00
0.00
0.00
-
-0.01 1.35
Genesis Asset Managers LLP
Other International Funds
Emerging Mkts NAV
�
7.97
HPB Assurance Ltd
Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
�
�
0.54
0.66
-
0.00 0.00
0.01 0.00
Other International Funds
Haussmann Cls A
Haussmann Cls C
Haussmann Cls D
$ 2769.32
? 2360.71
SFr 1238.45
-
-10.23 0.00
-13.31 0.00
-7.47 0.00
Hermes Investment Funds Plc
(IRL)
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
FCA Recognised
Hermes Abs Return Credit Fund Class F Acc � 1.21 1.21 0.01 0.00
Hermes Abs Return Credit Fund Class R Acc ? 1.92 1.92 -0.01 0.00
Hermes Asia Ex-Japan Equity Fund Class F Acc � 2.66 2.66 0.01 0.00
Hermes Asia Ex-Japan Equity Fund Class R Acc ? 4.74 4.74 0.04 0.00
Hermes Europe Ex-UK Equity Fund Class F Acc � 2.03 2.03 0.01 0.00
Hermes Europe Ex-UK Equity Fund Class R Acc ? 3.90 3.90 0.02 0.00
Hermes European Alpha Equity Fund Class F Acc � 1.71 1.71 0.00 0.00
Hermes European Alpha Equity Fund Class F Dis � 1.62 1.62 0.01 1.31
Hermes European Alpha Equity Fund Class R Acc ? 3.39 3.39 0.01 0.00
Hermes Global Emerging Markets Fund Class F Acc � 1.99 1.99 0.00 0.00
Hermes Global Emerging Markets Fund Class R Acc ? 4.14 4.14 0.01 0.00
Hermes Global Equity Fund Class F Acc � 2.23 2.23 -0.01 0.00
Hermes Global Equity Fund Class R Acc ? 4.81 4.81 0.00 0.00
Hermes Global ESG Equity Fund Class F Acc � 1.69 1.69 -0.01 0.00
Hermes Global High Yield Credit Fund Class F Acc � 1.50 1.50 0.00 0.00
Hermes Global High Yield Credit Fund Class R Acc ? 3.19 3.19 0.00 0.00
Hermes Global Small Cap Fund Class F Acc � 1.49 1.49 -0.01 0.00
Hermes Global Small Cap Fund Class R Acc ? 2.17 2.17 -0.01 0.00
Hermes Multi Asset Inflation Fund Class F GBP Acc � 1.06 1.06 0.00 0.00
Hermes Multi Strategy Credit Fund Class F Acc Hed � 1.15 1.15 0.00 0.00
Hermes US All Cap Equity Class F Stg � Acc � 1.44 1.44 0.00 0.00
Hermes US All Cap Equity Class R ? Acc ? 2.18 2.18 0.00 0.00
Hermes US SMID Equity Fund Class F Acc � 2.37 2.37 -0.01 0.00
Hermes US SMID Equity Fund Class R Acc ? 4.16 4.16 0.01 0.00
�
9.52
-
0.06 0.00
Intrinsic Value Investors (IVI) LLP
(IRL)
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
FCA Recognised
IVI European Fund EUR
? 22.50 0.07 0.00
IVI European Fund GBP
� 26.52 0.02 0.58
Invesco Fund Managers Ltd
(UK)
Perptual Park, Henley-On-Thames, Oxon, RG9 1HH
Dealing: 0800 085 8571
Investor Services: 0800 085 8677
www.invescoperpetual.co.uk
Authorised Inv Funds
Invesco Perpetual Funds (No Trail)
Global Targeted Income Fund Acc (No Trail) 102.20
Global Targeted Income Fund Inc (No Trail) 105.62
Invesco Global Emerging Mkts Bond Acc (No Trail)
98.47
Invesco Global Emerging Mkts Bond Inc (No Trail)
95.24
-
0.12 3.00
0.12 2.96
-0.15 -0.15 -
(LUX)
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
FCA Recognised
? 3.17
$ 14.78
$ 17.76
$ 14.97
$ 139.96
? 16.89
$ 11.46
$ 6.94
$ 12.56
$ 16.96
? 18.09
? 320.44
? 7.56
? 27.63
? 11.30
$ 5.72
? 11.72
$ 72.20
$ 9.67
$ 12.54
$ 53.04
$ 76.82
$ 51.68
? 13.83
$ 4.98
$ 63.13
$ 71.88
� 4892.00
� 1699.00
$ 7.40
� 1612.00
? 20.87
? 14.68
? 24.82
? 19.22
? 16.02
� 33.84
� 1.06
$ 26.84
$ 41.60
$ 87.82
-
-
0.00 0.00
0.00 0.00 -1.26 0.73
-0.71 1.23
Lloyds Investment Fund Managers Limited (1000)F (JER)
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
Other International Funds
Lloydstrust Gilt
� 12.6500 - 0.0100 1.94
Lloyds Investment Funds Limited
Euro High Income
? 1.6230 - -0.0020 3.03
European
� 10.1500 - -0.0200 0.32
High Income
� 0.8840xd - 0.0003 4.27
International
� 5.6320 - 0.0070 0.33
North American
� 22.5100 - -0.0100 0.00
Sterling Bond
� 1.5590 - 0.0010 2.66
UK
� 7.6570 - -0.0050 0.71
Lloyds Gilt Fund Limited
Lloyds Gilt Fund Quarterly Share � 1.3270 - 0.0010 1.51
Monthly Share
� 1.2730xd - 0.0010 1.51
Lloyds Money Fund Limited
Sterling Class
� 52.5300 - 0.0030 -0.20
Lloyds Multi Strategy Fund Limited
Conservative Strategy
� 1.2510 - 0.0010 0.86
Growth Strategy
� 1.8170 - 0.0030 0.67
Aggressive Strategy
� 2.4410 - 0.0060 0.00
Global USD Growth Strategy
$ 1.6450 - 0.0000 0.00
Dealing Daily
M & G Securities (1200)F
(UK)
PO Box 9038, Chelmsford, CM99 2XG
www.mandg.co.uk/charities Enq./Dealing: 0800 917 4472
Authorised Inv Funds
M&G Episode Growth A Inc
61.05 0.16
M&G Global Themes A Inc
907.44 - -0.69
M&G Global Themes A Acc
1410.67 - -1.06
M&G Global High Yield Bond A Inc
51.50 0.01
M&G Global High Yield Bond A Acc 132.65 0.04
M&G Managed Growth A Inc
112.08 0.19
M & G (Guernsey) Ltd
2.35
1.82
0.31
4.89
3.48
1.88
(GSY)
1379.35
3354.78
163.24
4667.16
1012.34
12782.94
241.10
149.98
12281.61
139.48
112.34
1707.92
-
-0.33
-2.56
1.07
-2.98
0.19
11.94
1.24
-0.03
46.16
0.00
-0.01
2.23
MMIP Investment Management Limited
3.98
0.17
2.66
1.03
5.26
2.52
1.77
3.96
2.17
3.97
2.19
1.08
(GSY)
Regulated
Multi-Manager Investment Programmes PCC Limited
UK Equity Fd Cl A Series 01
� 2837.51 2864.03 22.63 0.00
Diversified Absolute Rtn Fd USD Cl AF2 $ 1650.11 - 12.80 0.00
Diversified Absolute Return Stlg Cell AF2 � 1646.55 - 18.38 0.00
Global Equity Fund A Lead Series � 1427.85 1433.58 41.06 0.00
Marwyn Asset Management Limited
Regulated
Marwyn Value Investors
-
Other International Funds
Global Gold & Resources Fund
$ 317.06
Global Energy & Resources Fund $ 38.21
-
(CYM)
1.29 0.00
0.43
-0.83
FCA Recognised - Luxembourg UCITS
Foord International Fund | R
$ 40.38
Foord Global Equity Fund (Lux) | R $ 13.15
Regulated
Foord Global Equity Fund (Sing) | B $ 15.84
Foord International Trust (Gsy)
$ 40.07
-
0.03
-0.04
-
-0.04 0.00
0.03 0.00
-
Emerging Markets Managed Accounts PLC (IRL)
emma@milltrust.com, +44(0)20 8123 8369, www.milltrust.com
Regulated
Milltrust ASEAN A
$ 113.66 0.77 0.00
Milltrust India A
$ 177.05 0.84 0.00
Milltrust Latin America A
$ 100.96 0.41 0.00
Milltrust Keywise China Fund
$ 151.12 2.18 0.00
Milltrust SEDCO MENA Fund (Class A) * $ 97.03 0.15 0.00
0.00 0.16
Franklin Emerging Market Debt Opportunities Fund Plc
Franklin Emg Mkts Debt Opp CHFSFr 17.54 - -0.01 8.16
Franklin Emg Mkts Debt Opp GBP � 10.84 - -0.02 6.08
Franklin Emg Mkts Debt Opp SGD S$ 23.27 0.04 4.71
Franklin Emg Mkts Debt Opp USD $ 18.05 0.09 6.12
-
0.61
-0.75
-0.24
0.32
-0.73
0.04
0.00
0.00
0.00
0.00
-
Northwest Investment Management (HK) Ltd
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Other International Funds
Northwest China Opps $ Class
$ 3139.40 - 75.86 0.00
Northwest $ Class
$ 2405.37 - 41.15 0.00
Oasis Crescent Management Company Ltd
Other International Funds
Oasis Crescent Equity Fund
-
0.02 0.00
Oasis Global Mgmt Co (Ireland) Ltd
R 10.43
(IRL)
Oasis Global Investment (Ireland) Plc
Oasis Crescent Global Short Term Income Fund $ 0.99 0.01 1.57
Oasis Global Equity
$ 30.34 0.25 0.52
Oasis Crescent Global Investment Fund (Ireland) plc
Oasis Crescent Global Equity Fund $ 31.19 0.25 0.43
Oasis Crescent Variable Balanced Fund � 10.47 0.02 0.00
OasisCresGl Income Class A
$ 10.72 - -0.01 2.64
OasisCresGl LowBal D ($) Dist
$ 12.30 0.03 0.00
OasisCresGl Med Eq Bal A ($) Dist $ 12.96 0.03 0.29
Oasis Crescent Gbl Property Eqty $ 9.70 - -0.02 1.77
Fund
Bid
Offer D+/- Yield
Platinum Capital Management Ltd
Other International Funds
Platinum All Star Fund - A
$ 129.99
Platinum Global Dividend Fund - A $ 48.04
Platinum Global Growth UCITS Fund $ 10.00
-
-
Polar Capital Funds Plc
-
Fund
Bid
Slater Recovery
Slater Artorius
228.03 241.94 0.99 0.00
196.68 196.68 0.17 0.33
Offer D+/- Yield
Standard Life Wealth
(JER)
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
FCA Recognised
$ 10.23
$ 387.56
$ 21.27
? 12.76
? 11.60
$ 14.58
$ 10.93
$ 11.92
$ 16.10
$ 12.44
� 6.11
$ 38.60
$ 11.94
$ 41.49
� 2.26
� 262.54
� 2634.84
$ 23.97
� 20.25
� 11.74
10.23
387.56
21.27
12.76
11.60
16.10
12.44
11.94
2.26
262.54
23.97
20.25
11.74
? 185.18
-
-0.05
0.10
-0.07
0.09
0.07
0.06
-0.06
-0.05
-0.01
-0.02
0.04
-0.31
0.05
-0.12
0.01
-0.18
-6.24
0.07
-0.04
0.04
Polar Capital LLP
Regulated
OEI Mac Inc GBP A
OEI Mac Inc GBP B
OEI MAC Inc USD
Odey European Inc EUR
Odey European Inc GBP A
Odey European Inc GBP B
Odey European Inc USD
Giano Capital EUR Inc
� 155.31
� 90.28
$ 822.12
? 360.51
� 143.93
� 81.59
$ 171.19
? 4515.88
(CYM)
-
-6.79
-6.42
-36.62
-15.50
-6.09
-3.45
-7.39
23.63
Odey Asset Management LLP
FCA Recognised
Odey Pan European EUR R
Odey Allegra International EUR O
Odey Allegra Developed Markets USD I
Odey European Focus Fund
Odey Giano European Fund EUR R
Odey Odyssey USD I
Odey Swan Fund EUR I
Odey Absolute Return Focus Fund
? 312.46
? 166.92
$ 155.15
? 19.65
? 115.64
$ 89.97
? 42.66
$ 91.30
-
1.91
1.06
0.09
0.14
0.03
0.37
0.17
-2.74
? 238.66
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(IRL)
-
0.65 0.00
Omnia Fund Ltd
Other International Funds
Estimated NAV
$ 985.73
-
0.00
0.04
0.05
0.01
0.25
-0.04
-0.08
-0.02
0.05
-0.07
-0.02
-0.01
-0.01
-0.03
0.03
-0.01
0.00
0.08
0.04
0.00
-0.14
-0.15
0.03
-0.02
-0.03
0.20
-0.59
-7.00
-8.00
0.07
-6.00
0.08
0.01
0.13
0.07
-0.01
0.19
0.00
-0.04
0.20
0.00
0.00
3.32
0.06
0.77
0.00
0.00
0.00
5.84
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.81
0.00
0.00
1.88
2.78
0.00
0.00
0.74
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.09
0.00
0.00
0.00
1.90
0.00
0.00
0.00
Invesco Global Asset Management Ltd
(IRL)
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
FCA Recognised
Invesco Stlg Bd A QD F
� 2.70 0.00
Invesco Asian Equity A
$ 9.18 0.02
Invesco ASEAN Equity A
$ 104.85 0.08
Invesco Bond A
$ 27.78 - -0.02
Invesco Continental Eurp Small Cap Eqty A $ 287.56 - -0.72
Invesco Emerging Markets Equity A $ 48.83 0.00
Invesco Emerging Markets Bond A $ 22.33 0.01
Invesco Continental European Equity A ? 9.61 0.01
Invesco Gilt A
� 16.08 - -0.02
Invesco Global Small Cap Equity A NAV $ 159.59 0.18
Invesco Global High Income A NAV $ 12.29 0.00
Invesco Gbl R/Est Secs A GBP F F � 9.51 0.04
Invesco Global Health Care A
$ 127.07 0.01
Invesco Global Select Equity A
$ 15.90 0.06
Invesco Jap Eqty Core A
$ 22.70 0.06
Invesco Japanese Equity A
$ 26.41 - -0.10
Invesco Korean Equity A
$ 29.51 0.49
Invesco PRC Equity A
$ 77.98 0.71
Invesco Pacific Equity A
$ 67.62 0.20
Invesco Global Technology A
$ 21.20 - -0.06
Invesco UK Eqty A
� 9.39 0.04
3.36
0.22
0.11
2.03
0.00
0.00
4.80
0.96
0.94
0.00
6.24
0.89
0.00
0.44
0.11
0.00
0.00
0.03
0.19
0.00
1.67
Mirabaud Asset Management
(LUX)
www.mirabaud.com, marketing@mirabaud-am.com
Conviction based investment vehicles details available here www.mirabaud-am.com
Regulated
Mir. - Conv. Bds Eur A EUR
? 137.40 0.22 0.00
Mir. - Conv. Bds Glb A USD
$ 121.67 0.15 0.00
Mir. - Eq Asia ex Jap A
$ 244.91 1.07 0.00
Mir.- EqEurope ExUK Sm&Mid
� 156.67 - -0.42 0.00
Mir. - Eq Glb Emrg Mkt A USD
$ 129.48 0.54 0.00
Mir. - Eq Spain A
? 28.23 - -0.12 0.00
Mir. - Eq Swiss Sm/Mid A
SFr 476.92 0.66 0.00
Mir. - Glb High Yield Bds A
$ 123.62 0.09 Mir. - Glb Eq High Income A USD $ 116.52 - -0.15 0.00
Mir. - US Shrt Term Credit Fd
$ 104.21 - -0.01 0.00
Mir. - Glb Strat. Bd I USD
$ 110.34 0.03 0.00
Mir. - EqPanEuropeSm&Mid
� 151.80 - -0.10 0.00
Mir. - Eq UK High Income I GBP � 127.03 0.00 0.00
Kames Capital VCIC
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493
FCA Recognised
Absolute Return Bond B GBP Acc 1106.32 - -0.16
Eq Market Neutral B Acc
953.18 - -0.35
Eq Market Neutral Plus B Acc
893.16 - -1.22
High Yield Global Bond A GBP Inc 527.42 0.03
High Yield Global Bond B GBP Inc 1106.48 0.07
Investment Grade Global Bd A GBP Inc 585.42 - -0.25
Kames Emerging Market Bond Fund - B Acc USD $ 11.26 - -0.03
Kames Global Equity Income B GBP Acc 1656.51 - -0.67
Kames Global Equity Income B GBP Inc 1455.44 - -8.32
Kames Global Diversified Growth Fund - B Acc EUR ? 11.31 0.01
Kames Global Equity Market Neutral Fund - B Acc GBP � 10.30 - -0.05
Kames Global Sustainable Equity Fund - B Acc EUR ? 12.62 0.04
17.04
0.33
3.10
-0.82
-0.56
-0.20
-2.29
-0.42
-0.69
-0.21
0.06
0.58
2.14
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Oryx International Growth Fund Ltd
Other International Funds
NAV (Fully Diluted)
�
8.99
Stenham Asset Management Inc
www.stenhamassetmanagement.com
Other International Funds
Stenham Credit Opportunities A Class USD
Stenham Equity UCITS USD
Stenham Growth USD
Stenham Healthcare USD
Stenham Managed Fund USD
Stenham Quadrant USD A
Stenham Trading Inc USD
Stenham Universal USD
Stenham Universal II USD
$ 113.62
$ 177.80
$ 222.84
$ 201.21
$ 118.68
$ 420.83
$ 121.25
$ 449.40
$ 164.90
-
0.87
0.36
2.32
-3.85
0.19
1.17
0.33
0.52
0.13
0.00
0.00
0.00
0.00
0.00
Private Fund Mgrs (Guernsey) Ltd
Regulated
Monument Growth 05/12/2017
0.26 0.00
(LUX)
6b Route de Tr鑦es L-2633 Senningerberg Luxembourg (352) 34 64 61
www.morganstanleyinvestmentfunds.com
FCA Recognised
US Advantage A F
$ 77.41 - -0.02 0.00
Asian Equity A F
$ 54.07 - -0.27 0.00
Asian Property A F
$ 20.30 0.12 0.00
Emerg Europ, Mid-East & Africa Eq A F ? 78.06 0.04 0.00
Emerging Markets Debt A F
$ 89.11 - -0.08 0.00
Emerging Markets Domestic Debt AX F � 12.37 12.37 -0.04 5.19
Emerging Markets Equity A F
$ 44.31 44.31 -0.21 0.00
Euro Bond A F
? 16.44 16.44 -0.01 0.00
Euro Corporate Bond AX F
� 27.98 27.98 -0.09 1.36
Euro Strategic Bond A F
? 47.01 47.01 -0.05 0.00
European Currencies High Yield Bd A F ? 24.75 24.75 0.01 0.00
European Equity Alpha A F
? 46.11 0.16 0.00
European Property A F
? 35.44 35.44 -0.14 0.00
Eurozone Equity Alpha A F
? 13.25 13.25 0.01 0.00
Global Bond A F
$ 42.09 42.09 -0.12 0.00
Global Brands A F
$ 127.04 0.27 0.00
Global Convertible Bond A F
$ 44.92 0.09 0.00
Global Property A F
$ 30.28 - -0.02 0.00
Indian Equity A F
$ 47.72 - -0.44 0.00
Latin American Equity A F
$ 53.10 - -0.46 0.00
Short Maturity Euro Bond A F
? 20.44 20.44 -0.02 0.00
US Dollar Liquidity A F
$ 13.12 0.00 0.00
US Growth A F
$ 95.50 - -0.12 0.00
US Growth AH F
? 64.21 64.21 -0.08 0.00
US Growth AX F
� 71.62 71.62 0.03 0.00
US Property A F
$ 72.81 0.08 0.00
Other International Funds
Phaeton Intl (BVI) Ltd (Est)
$ 451.82
-
-2.90 0.00
Natixis International Funds (LUX) I SICAV (LUX)
FCA Recognised
ASG Managed Futures Fund I/A (USD)
Harris Global Equity Fund R/A (USD)
Loomis Sayles Global Growth Equity Fund I/A (USD)
Loomis Sayles U.S. Growth Equity Fund I/A (USD)
$ 103.32
$ 326.62
$ 131.02
$ 134.34
103.32
326.62
131.02
134.34
-0.38
0.55
0.09
-0.27
Natixis International Funds
Authorised Funds
DNCA European Select Equity Fund
Harris Global Concentrated Equity Fund
H2O MultiReturns Fund N/A (GBP)
Loomis Sayles U.S. Equity Leaders N/A (GBP)
�
�
�
�
0.00
0.00
0.00
0.00
(UK)
1.06
1.71
1.57
2.37
-
0.00 0.01 0.00
-0.01 0.00
0.00 0.00
(IRL)
New Capital UCITS Funds PLC
(IRL)
Leconfield House, Curzon Street, London, W1J 5JB
www.newcapitalfunds.com
FCA Recognised
New Capital Asia Pacific Bond Fund - USD Ord Inc. $ 96.20 - -0.09
New Capital Asia Pacific Equity Income Fund - USD Ord Inc. $ 107.24 - -0.10
New Capital Dynamic European Equity Fund - EUR Ord Inc. ? 189.41 1.03
New Capital China Equity Fund - USD Ord Acc. $ 170.35 - -2.87
New Capital Global Value Credit Fund - USD Ord Acc. $ 185.29 0.03
New Capital Global Equity Conviction Fund - USD Ord Acc. $ 119.78 - -0.38
New Capital Strategic Portfolio UCITS Fund - USD Inst Acc. $ 118.52 - -0.31
New Capital Wealthy Nations Bond Fund - USD Inst Inc. $ 120.49 - -0.13
3.15
3.47
2.19
0.00
0.00
0.00
0.00
3.80
Pictet Asset Management (Europe) SA
15, Avenue J.F. Kennedy L-1855 Luxembourg
Tel: 0041 58 323 3000
FCA Recognised
Pictet-Absl Rtn Fix Inc-HI EUR
? 108.42
Pictet-Asian Equities Ex Japan-I USD F $ 317.83
Pictet-Asian Local Currency Debt-I USD F $ 168.10
Pictet-Biotech-I USD F
$ 797.77
Pictet-CHF Bonds I CHF
SFr 509.14
Pictet-China Index I USD
$ 156.61
Pictet-Clean Energy-I USD F
$ 99.97
Pictet-Digital-I USD F
$ 385.66
Pictet-Em Lcl Ccy Dbt-I USD F
$ 178.19
Pictet-Emerging Europe-I EUR F ? 384.68
Pictet-Emerging Markets-I USD F $ 678.29
Pictet-Emerging Markets Index-I USD F $ 299.94
Pictet-Emerging Corporate Bonds I USD $ 126.08
Pictet-Emerging Markets High Dividend I USD $ 124.27
Pictet-Emerging Markets Sust Eq I USD $ 107.92
Pictet-EUR Bonds-I F
? 590.86
Pictet-EUR Corporate Bonds Ex Fin i EUR ? 152.40
Pictet-EUR Corporate Bonds-I F ? 213.57
Pictet-EUR Government Bonds I EUR ? 164.58
Pictet-EUR High Yield-I F
? 274.96
Pictet-EUR Short Mid-Term Bonds-I F ? 137.90
Pictet-EUR Short Term HY I EUR ? 126.67
Pictet-EUR Sov.Sht.Mon.Mkt EUR I ? 101.78
Pictet-Euroland Index IS EUR
? 158.21
Pictet-Europe Index-I EUR F
? 193.08
Pictet-European Equity Selection-I EUR F ? 760.76
Pictet-European Sust Eq-I EUR F ? 270.63
Pictet-Global Bds Fundamental I USD $ 125.45
Pictet-Global Bonds-I EUR
? 167.47
Pictet-Global Defensive Equities I USD $ 174.88
Pictet-Global Emerging Currencies-I USD F $ 107.56
Pictet-Global Emerging Debt-I USD F $ 413.29
Pictet-Global Env.Opport-I EUR
? 201.53
Pictet-Global Megatrend Selection-I USD F $ 287.47
Pictet-Greater China-I USD F
$ 657.05
Pictet-Health-I USD
$ 280.19
Pictet-High Dividend Sel I EUR F ? 172.97
Pictet-India Index I USD
$ 125.65
Pictet-Indian Equities-I USD F
$ 604.69
Pictet-Japan Index-I JPY F
� 19271.85
Pictet-Japanese Equities Opp-I JPY F � 12405.14
Pictet-Japanese Equity Selection-I JPY F � 17697.59
Pictet-LATAM Lc Ccy Dbt-I USD F $ 138.52
Pictet-Multi Asset Global Opportunities-I EUR ? 122.27
Pictet-Nutrition-I EUR
? 219.09
Pictet-Pacific Ex Japan Index-I USD F $ 430.69
Pictet-Premium Brands-I EUR F
? 172.63
Pictet-Russia Index I USD
$ 72.84
Pictet-Russian Equities-I USD F $ 71.92
Pictet-Security-I USD F
$ 247.93
Pictet-Select-Callisto I EUR
? 104.01
Pictet-Small Cap Europe-I EUR F ? 1364.63
Pictet-ST.MoneyMkt-I
? 139.54
Pictet-ST.MoneyMkt JPY I USD � 101130.69
Pictet-ST.MoneyMkt-ICHF
SFr 122.22
Pictet-ST.MoneyMkt-IUSD
$ 138.19
Pictet-Timber-I USD F
$ 195.18
Pictet TR-Agora I EUR
? 120.85
Pictet TR-Corto Europe I EUR
? 145.04
Pictet TR-Divers Alpha I EUR
? 111.15
Pictet TR-Kosmos I EUR
? 110.00
Pictet TR-Mandarin I USD
$ 154.16
Pictet-US Equity Selection-I USD $ 233.73
Pictet-US High Yield-I USD F
$ 165.42
Pictet-USA Index-I USD F
$ 241.14
Pictet-USD Government Bonds-I F $ 653.08
Pictet-USD Short Mid-Term Bonds-I F $ 131.73
Pictet-USD Sov.ST.Mon.Mkt-I
$ 104.33
Pictet-Water-I EUR F
? 343.36
-
0.08
1.80
0.36
-6.42
-0.34
-2.22
-0.59
-0.60
-0.97
2.45
2.55
-2.04
-0.03
0.51
-0.41
-0.83
-0.11
-0.14
-0.48
-0.03
-0.04
-0.38
0.01
0.74
1.34
-1.08
1.24
-0.46
0.33
0.36
-0.39
0.31
0.09
-0.65
3.09
-0.22
1.15
-1.03
-5.61
-42.83
-56.87
-52.19
0.10
0.21
1.02
1.13
1.15
0.35
0.41
-0.37
0.02
2.66
0.00
-4.99
0.00
-0.02
-0.44
0.27
0.17
-0.15
0.04
-1.17
0.10
0.13
0.37
-0.53
-0.01
0.00
0.45
(LUX)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prusik Investment Management LLP
Regulated
PCG B
PCG C
-
(IRL)
0.80 3.19
0.71 0.00
-0.30 0.00
214.10
210.39
(JER)
-
1.54 0.00
1.52 0.00
Putnam Investments (Ireland) Ltd
Regulated
Putnam New Flag Euro High Yield Plc - E ? 1033.50
(IRL)
-
0.24 3.35
E.I. Sturdza Strategic Management Limited (GSY)
Regulated
Nippon Growth Fund Limited
Strat Evarich Japan Fd Ltd JPY
Strat Evarich Japan Fd Ltd USD
� 111058.00
� 94578.00
$ 931.36
-
-822.00 0.00
1393.00 0.00
13.85 0.00
� 98372.00
$ 3463.89
? 1130.66
? 223.07
? 1353.58
$ 1060.08
$ 139.47
$ 1072.67
$ 841.94
� 62534.00
? 1015.58
-
575.00
-66.05
-0.09
1.65
0.42
-0.04
0.35
-1.00
-0.45
-50.00
-0.27
E.I. Sturdza Funds PLC
Regulated
Nippon Growth (UCITS) Fd - B
Strategic China Panda Fd - USD
Strategic Euro Bond Fd - Acc
Strategic Europe Value Fd - EUR
Strategic European Smaller Companies Fd - EUR
Strategic Global Bond Fd - USD
Strategic Global Quality Fd - USD Inst
Strategic Quality Emerging Bond Fd - USD
Strategic US Momentum and Value Fd - USD Class
Strategic Japan Opportunities Fund
Strategic Beta Flex Fund
www.ram-ai.com
Other International Funds
RAM Systematic Emerg Markets Core Eq
RAM Systematic Emerg Markets Eq
RAM Systematic European Eq
RAM Systematic Global Shareholder Yield Eq
RAM Systematic Long/Short Emerg Markets Eq
RAM Systematic Long/Short European Eq
RAM Systematic North American Eq
RAM Tactical Convertibles Europe
RAM Tactical Global Bond Total Return
RAM Tactical II Asia Bond Total Return
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-
$ 103.62
$ 183.16
? 451.37
$ 129.14
$ 118.21
? 153.43
$ 304.15
? 151.04
? 145.69
$ 142.32
-
-0.70 -1.07 1.15 -0.19 0.00
-0.36 -0.38 -0.61 0.14 -0.04 -0.05 -
(LUX)
0.72
0.59
0.68
-0.67
1.50
0.59
0.89
0.06
0.40
Ruffer LLP (1000)F
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
CF Ruffer European C Acc
CF Ruffer European C Inc
CF Ruffer European O Acc
CF Ruffer Equity & General C Acc
CF Ruffer Equity & General C Inc
CF Ruffer Equity & General O Acc
CF Ruffer Equity & General O Inc
CF Ruffer Gold C Acc
CF Ruffer Gold C Inc
CF Ruffer Gold O Acc
CF Ruffer Japanese C Inc
CF Ruffer Japanese C Acc
CF Ruffer Pacific C Acc
CF Ruffer Pacific C Inc
CF Ruffer Pacific O Acc
CF Ruffer Total Return C Acc
CF Ruffer Total Return C Inc
CF Ruffer Total Return O Acc
CF Ruffer Total Return O Inc
www.superfund.com, +43 (1) 247 00
Regulated
Superfund Green EUR SICAV
Superfund Red EUR SICAV
Superfund Blue EUR
Other International Funds
Superfund Green Gold SICAV
Superfund Red Silver SICAV
? 987.98
? 875.04
? 776.64
-
1.30 0.00
0.18 0.00
1.07 0.00
$ 1010.66
$ 430.01
-
-4.64 0.00
-3.84 0.00
www.toscafund.com
Authorised Funds
Aptus Global Financials B Acc
Aptus Global Financials B Inc
�
�
4.37
3.48
(UK)
-
0.00 4.73
0.00 4.95
Toscafund Asset Management LLP
-135.00 0.00
83.00 0.00
5.00 0.00
� 37859.00
$ 1476.09
-
-101.00 0.00
-3.89 0.00
-
0.07 0.00
Zadig Gestion (Memnon Fund)
FCA Recognised
Memnon European Fund I GBP
� 168.47
(LUX)
Data Provided by
Other International Funds
Tosca A USD
Tosca Mid Cap GBP
Tosca Opportunity B USD
Pegasus Fund Ltd A-1 GBP
583.10
107.56
573.80
450.63
415.45
443.47
411.47
136.21
82.44
133.99
115.42
245.60
369.89
104.01
363.68
444.86
299.38
437.75
294.45
$ 354.93
� 278.19
$ 401.01
� 66.08
-
-8.80 -9.04 -16.59 -0.66 0.00
-
2.85
0.52
2.77
1.54
1.41
1.48
1.38
-2.30
-1.39
-2.27
2.70
5.74
1.33
0.38
1.29
2.41
1.62
2.34
1.58
0.30
0.00
0.04
0.04
0.00
0.00
0.64
0.38
0.23
0.94
0.64
1.53
1.53
1.52
1.54
TreeTop Asset Management S.A.
(LUX)
Regulated
TreeTop Convertible Sicav
International A
International B
International C
International D
TreeTop Global Sicav
Global Opp.A
Global Opp.B
Global Opp.C
Sequoia Equity A
Sequoia Equity B
Sequoia Equity C
? 306.42
$ 407.75
� 128.45
? 268.63
-
0.83
1.00
0.34
0.76
0.00
0.00
2.69
2.57
? 176.04
$ 183.13
� 250.46
? 156.51
$ 171.67
� 204.90
-
0.71
0.31
1.05
0.42
0.11
0.70
0.00
0.00
0.00
0.00
0.00
2.91
Troy Asset Mgt (1200)
(UK)
40 Dukes Place, London EC3A 7NH
Order Desk and Enquiries: 0345 608 0950
Authorised Inv Funds
108.87
105.85
-
0.21 2.65
0.21 2.73
UBS Asset Management
S W Mitchell Capital LLP
(IRL)
-
113.29
49.98
4.11
25.36
RobecoSAM
0.00
0.00
0.00
0.00
(LUX)
Tel. +41 44 653 10 10 http://www.robecosam.com/
Regulated
RobecoSAM Sm.Energy/A
� 17.39 - -0.05
RobecoSAM Sm.Energy/N
? 15.61 0.00
RobecoSAM Sm.Materials/A
� 208.41 0.03
RobecoSAM Sm.Materials/N
? 212.46 0.63
RobecoSAM Sm.Materials/Na
? 142.86 0.42
RobecoSAM Gl.Small Cap Eq/A � 113.66 0.25
RobecoSAM Gl.Small Cap Eq/N ? 199.75 1.00
RobecoSAM Sustainable Gl.Eq/B ? 218.45 1.55
RobecoSAM Sustainable Gl.Eq/N ? 191.17 1.36
RobecoSAM S.HealthyLiv/B
? 191.84 1.27
RobecoSAM S.HealthyLiv/N
? 181.46 1.20
RobecoSAM S.HealthyLiv/Na
� 136.00 0.52
RobecoSAM S.Water/A
� 243.35 0.30
RobecoSAM S.Water/N
? 207.86 0.83
1.20
0.00
1.26
0.00
1.26
1.09
0.00
0.00
0.00
0.00
0.00
1.37
1.41
0.00
Rubrics Global UCITS Funds Plc
(IRL)
-
-0.04
0.01
-0.03
-0.01
-0.15
0.00
0.00
0.00
0.00
0.00
Schroder Property Managers (Jersey) Ltd
� 138.69 145.05 0.30 2.77
SIA (SIA Funds AG) (CH)
SFr 227.50
SFr 191.80
Guide to Data
The fund prices quoted on these pages are supplied by
the operator of the relevant fund. Details of funds
published on these pages, including prices, are for the
purpose of information only and should only be used
as a guide. The Financial Times Limited makes no
representation as to their accuracy or completeness
and they should not be relied upon when making an
investment decision.
The fund prices published in this edition along with
additional information are also available on the
Financial Times website, www.ft.com/funds. The
funds published on these pages are grouped together
by fund management company.
Prices are in pence unless otherwise indicated. The
change, if shown, is the change on the previously
quoted figure (not all funds update prices daily). Those
designated $ with no prefix refer to US dollars. Yield
percentage figures (in Tuesday to Saturday papers)
allow for buying expenses. Prices of certain older
insurance linked plans might be subject to capital
gains tax on sales.
Guide to pricing of Authorised Investment Funds:
(compiled with the assistance of the IMA. The
Investment Management Association, 65 Kingsway,
London WC2B 6TD.
Tel: +44 (0)20 7831 0898.)
Different share classes are issued to reflect a different
currency, charging structure or type of holder.
Buying price: Also called offer price. The price at
which units in a unit trust are bought by investors.
Includes manager?s initial charge.
Trojan Global Income O Acc
Trojan Global Income O Inc
$ 135.97
$ 15.85
$ 162.55
$ 11.59
$ 99.05
Data as shown is for information purposes only. No
offer is made by Morningstar or this publication.
Selling price: Also called bid price. The price at which
units in a unit trust are sold by investors.
Trojan Investment Funds
? 17874.33
� 15650.39
? 15241.67
? 11675.17
www.morningstar.co.uk
OEIC: Open-Ended Investment Company. Similar to a
unit trust but using a company rather than a trust
structure.
www.toscafund.com
ACD Capita Financial Mgrs
Slater Investments Ltd
-
Asset Manageme
(UK)
CF Ruffer Investment Funds
Other International Fds
LTIF Stability Growth
LTIF Stability Inc Plus
� 9905.00
� 48704.00
� 21400.00
Asset Management
Managemen
40 Dukes Place, London EC3A 7NH
Order Desk and Enquiries: 0345 601 9610
Authorised Inv Funds
Other International Funds
Indirect Real Estate SIRE
Yuki Mizuho Umbrella Fund
Yuki Mizuho Japan Dynamic Growth
Yuki Japan Low Price
Yuki Japan Value Select
Yuki Asia Umbrella Fund
Yuki Japan Rebounding Growth Fund JPY Class
Yuki Japan Rebounding Growth Fund USD Hedged Class
The sale of interests in the funds listed on these pages
may, in certain jurisdictions, be restricted by law and
the funds will not necessarily be available to persons
in all jurisdictions in which the publication circulates.
Persons in any doubt should take appropriate
professional advice. Data collated by Morningstar. For
other queries contact reader.enquiries@ft.com +44
(0)207 873 4211.
Superfund Asset Management GmbH
Weena 850, 3014 DA Rotterdam, The Netherlands
www.robeco.com/contact
FCA Recognised
Asia-Pacific Equities (EUR)
? 164.29 BP US Premium Equities (EUR)
? 229.68 BP US Premium Equities (USD)
$ 264.23 Chinese Equities (EUR)
? 100.34 Em Stars Equities (EUR)
? 225.95 Emerging Markets Equities (EUR) ? 194.61 Glob.Consumer Trends Equities (EUR) ? 192.59 High Yield Bonds (EUR)
? 146.16 New World Financials (EUR)
? 67.24 -
www.rubricsam.com
Regulated
Rubrics Emerging Markets Fixed Income UCITS Fund
Rubrics Global Credit UCITS Fund
Rubrics Global Fixed Income UCITS Fund
Q Rubrics India Fixed Income UCITS Fund
Rubrics India Fixed Income UCITS Fund
(IRL)
(IRL)
Asset
Management
Asse
agement
Ram Active Investments
SAt Man
Regulated
SWMC European Fund B EUR
SWMC UK Fund B
SWMC Small Cap European Fund B EUR
SWMC Emerging European Fund B EUR
-
(GSY)
� 519.46 525.16 -2.01 1.55
Authorised Corporate Director - Capita Financial Managers
-
Morgan Stanley Investment Funds
Morgens Waterfall Vintiadis.co Inc
1.16
0.00
0.00
3.04
3.54
1.81
0.00
0.00
3.19
0.00
0.00
0.00
-
(TUR)
www.yapikrediportfoy.com.tr Tel: + 90 (212) 385 48 48
Other International Funds
Eurobond Fund
TRY 0.107760 - 0.000231
Koc Affiliate and Equity Fund
TRY 0.980958 - 0.873429
DPM Bonds and Bills Fund (FX)
$ 1.053468 - 0.945939
Tel +44-20-7269-0207 www.yukifunds.com
Regulated
Toscafund Asset Management LLP
$ 1597.35
$ 15.43
$ 130.89
$ 96.88
$ 83.90
$ 22.78
$ 110.05
? 20.54
$ 71.58
$ 16.71
$ 17.59
$ 107.44
$ 137.46
Yapi Kredi Asset Management
-1.09 0.00
Robeco Asset Management
Other International Funds
Cuttyhunk Fund II Limited
JENOP Global Healthcare Fund Ltd
OPTIKA Fund Limited - Cl A
Optima Fd NAV
Optima Discretionary Macro Fund Limited
The Dorset Energy Fd Ltd NAV
Platinum Fd Ltd
Platinum Fd Ltd EUR
Platinum Japan Fd Ltd
Optima Partners Global Fd
Optima Partners Focus Fund A
Optima STAR Fund (hedged)
Optima STAR Long Fund
Offer D+/- Yield
Yuki International Limited
-19.92 0.00
Optima Fund Management
Bid
1.75
0.49
4.14
3.36
3.42
2.92
(IRL)
Odey Wealth Management (CI) Ltd
www.odey.com/prices
FCA Recognised
Odey Opportunity EUR I
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.69
0.00
0.00
0.00
1.78
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-
Fund
(CYM)
Regulated
European Forager A EUR
Purisima Investment Fds (CI) Ltd
Odey Asset Management LLP
0.0011
0.0001
0.0000
0.0004
-0.0002
0.0018
(IRL)
Regulated
Automation & Artificial Intelligence CL I USD Acc
Asian Financials I USD
Biotechnology I USD
European Income Acc EUR
European Ex UK Inc EUR Acc
Financial Opps I USD
GEM Growth I USD
GEM Income I USD
Global Alpha I USD
Global Convertible I USD
Global Insurance I GBP
Global Technology I USD
Healthcare Blue Chip Fund I USD Acc
Healthcare Opps I USD
Income Opportunities B2 I GBP Acc
Japan Alpha I JPY
Japan I JPY
North American I USD
UK Absolute Equity I GBP
UK Val Opp I GBP Acc
Enquiries - 0207 493 1331
Regulated
Prusik Asian Equity Income B Dist $ 211.30
Prusik Asia A
$ 265.76
Prusik Asian Smaller Cos A
$ 171.17
mimi@milltrust.com, +44(0)20 8123 8369 www.milltrust.com
Regulated
MAI - Buy & Lease (Australia) A$ 99.42 - -0.58 MAI - Buy & Lease (New Zealand)NZ$ 99.44 - -0.56 0.00
British Innovation Fund
� 98.71 - -1.03 EICM South Asia Hospitality 1
$ 101.98 4.50 -
-
Franklin Templeton International Services Sarl (IRL)
Offer D+/- Yield
Standard Life Offshore Strategy Fund Limited
Bridge Fund
� 1.8959 Global Equity Fund
� 2.4023 Global Fixed Interest Fund
� 1.0229 Income Fund
� 0.5711 Sterling Fixed Interest Fund
� 0.8869 UK Equity Fund
� 2.1990 -
Asset Management
� 463.23
Bid
New Capital Swiss Select Equity Fund - CHF Ord Acc.SFr 158.94
New Capital US Growth Fund - USD Ord Acc. $ 260.99
New Capital All Weather UCITS Fund - EUR Inst Acc. ? 101.53
New Capital Dynamic UK Equity Fund - GBP Inst Acc. � 111.70
New Capital US Small Cap Growth Fund - USD Inst Acc $ 123.01
New Capital Global Alpha Fund - USD Ord Inc $ 106.12
Regulated
Regulated
The M&G Offshore Fund Range
Corporate Bond A
Global Basics X
Global Dividend A
Global Leaders A
Global High Yield Bond X
Global Macro Bond A
North American Dividend A
Optimal Income A
Recovery A
Strategic Corproate Bond A
UK Inf Lkd Corp Bd A Inc
UK Select A
Fund
Milltrust International Managed Investments ICAV (IRL)
Invesco
Invesco Management SA
Invesco Active Multi-Sector Credit Fund A
Invesco Asia Balanced A dist
Invesco Asia Consumer Demand Fund A income
Invesco Asia Infrastructure (A)
Invesco Asia Opportunities Equity A
Invesco Balanced Risk Allocation Fund A
Invesco Emerging Europe Equity Fund A
Invesco Emerging Local Currencies Debt A Inc
Invesco Emerging Market Structured Equity Fund A
Invesco Energy A
Invesco Euro Corporate Bond Fund (A)
Invesco Euro Reserve A
Invesco Euro Bond A
Invesco European Growth Equity A
Invesco Global Absolute Return Fund A Class
Invesco Global Bond A Inc
Invesco Global Conservative Fund 90 (EUR) A
Invesco Global Equity Income Fund A
Invesco Global Inc Real Estate Sec A dist
Invesco Global Inv Grd Corp Bond A Dist
Invesco Global Leisure A
Invesco Global Smaller Comp Eq Fd A
Invesco Global Structured Equity A
Invesco Global Total Ret.(EUR) Bond Fund A
Invesco Gold & Precious Metals A
Invesco Greater China Equity A
Invesco India Equity A
Invesco Japanese Equity Adv Fd A
Invesco Japanese Value Eq Fd A
Invesco Latin American Equity A
Invesco Nippon Small/Mid Cap Equity A
Invesco Pan European Equity A EUR Cap NAV
Invesco Pan European High Income Fd A
Invesco Pan European Small Cap Equity A
Invesco Pan European Structured Equity A
Invesco Real Return (EUR) Bond Fund A
Invesco UK Eqty Income A
Invesco UK Investment Grade Bond A
Invesco US Structured Equity A
Invesco US Value Eq Fd A
Invesco USD Reserve A
Offer D+/- Yield
Meridian Fund Managers Ltd
www.invil.mu
Other International Funds
NAV
Bid
Kames Absolute Return Bond Global Fund - B Acc GBP � 10.27
Short Dated High Yld Bd B Acc GBP � 10.09
Short Dated High Yld Bd C Acc GBP (Hdg) � 10.11
Strategic Global Bond A GBP Inc
1131.03
Strategic Global Bond B GBP Inc
641.74
Website: www.foord.com - Email: info@foord.com
JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
Other International Funds
Other International Funds
CAM-GTF Limited
$ 317551.01 317551.01 -1122.09 0.00
CAM GTi Limited
$ 674.53 - -3.29 0.00
Raffles-Asia Investment Company $ 1.67 1.67 0.04 0.00
$
�
?
$
Foord Asset Management
(IRL)
Chartered Asset Management Pte Ltd
International Insurances
Global Multi-Strategy Managed
UK Multi-Strategy Managed
EU Multi-Strategy Managed
Global Bond USD
Ennismore Smaller Cos Plc
Eurobank Fund Management Company (Luxembourg) S.A.
Link Asset Services
$ 447.46
� 518.80
? 390.48
-0.01
0.03
0.02
0.03
0.02
0.02
0.02
1.28
0.45
1.69
1.73
2.23
Canada Life Investments
Regulated
Cedar Rock Capital Fd Plc
Cedar Rock Capital Fd Plc
Cedar Rock Capital Fd Plc
-0.19 0.00
0.19 0.00
1.96 -0.62 0.17 -
Edinburgh Partners Limited
Euronova Asset Management UK LLP
Cedar Rock Capital Limited
0.03 0.00
DSM Capital Partners Funds
CG Asset Management Limited
0.52
PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
INDIA VALUE INVESTMENTS LIMITED (INVIL)
Dragon Capital Group
Other International Funds
NAV
(IRL)
Generali Worldwide
Asset Management
(UK)
Senator House 85 Queen Victoria Street London EC4V 4ET
Authorised Inv Funds
Diversified Income 1 Units GBP Inc � 1.56 1.56 0.00 Diversified Income 2 Units GBP Inc � 1.50 1.50 0.00 Diversified Income 3 Units GBP Inc � 25 Moorgate, London, EC2R 6AY
Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859
FCA Recognised
Capital Gearing Portfolio Inc
� 31634.49 32111.40 167.33
CG Portfolio Fund Plc
Absolute Return Cls M Inc
� 116.00 116.90 0.20
Capital Value Cls V Inc
� 152.30 154.61 0.87
Dollar Fund Cls D Inc
� 149.45 150.21 0.49
Dollar Hedged GBP Inc
� 97.45 97.95 0.06
Real Return Cls A Inc
� 191.58 193.52 0.51
$ 198.17 202.21 12.35 0.00
Haussmann
Aspect Capital Ltd (UK)
Other International Funds
Aspect Diversified USD
$ 403.14
Aspect Diversified EUR
? 235.14
Aspect Diversified GBP
� 123.05
Aspect Diversified CHF
SFr 110.75
Aspect Diversified Trends USD $ 123.91
Aspect Diversified Trends EUR
? 120.58
Aspect Diversified Trends GBP
� 127.81
Regulated
Taurus Emerging Fund Ltd
International Insurances
Holiday Property Bond Ser 1
Holiday Property Bond Ser 2
0.00
0.00
0.00
0.00
0.00
0.00
Artisan Partners Global Funds PLC
Artisan Partners Global Funds plc
Artisan Global Equity Fund Class I USD Acc $ 18.47
Artisan Global Opportunities I USD Acc $ 16.68
Artisan Global Value Fund Class I USD Acc $ 20.97
Artisan US Value Equity Fund Class I USD Acc $ 15.11
Artisan Global Opportunities Class I EUR Acc ? 21.34
Cheyne Capital Management (UK) LLP
(GSY)
Fund
-
1.20 1.00 0.00
(UK)
www.slaterinvestments.com; Tel: 0207 220 9460
FCA Recognised
Slater Growth
494.65 523.09 -7.43 0.00
Slater Income A Inc
161.13 161.13 0.08 0.00
(UK)
5 Broadgate, London, EC2M 2QS
Client Services 0800 358 3012, Client Dealing 0800 358 3012
www.ubs.com/retailfunds
Authorised Inv Funds
OEIC
UBS Global Emerging Markets Equity C Acc
UBS Global Optimal C Acc
UBS UK Opportunities C Acc
UBS US Equity C Acc
UBS S&P 500 Index C Acc
UBS Targeted Return C Acc
UBS Sterling Corporate Bond Indexed C Acc
UBS Multi Asset Income C Inc Net
UBS UK Equity Income C Inc Net
UBS Corporate Bond UK Plus C Inc Net
UBS Global Allocation (UK) C Acc
UBS Global Enhanced Equity Income C Inc
UBS US Growth C Acc
UBS Emerging Markets Equity Income C Inc
UBS FTSE RAFI Dev 1000 Index J Acc
UBS MSCI World Min Vol Index J Acc
� 0.81
� 1.00
� 0.87
� 1.20
� 0.82
� 13.89
� 0.60
� 0.49
� 0.71
� 0.53
� 0.80
� 0.47
� 1.24
� 0.52
� 147.14
� 152.63
-
0.01
0.00
0.01
0.00
0.01
-0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.54
0.37
Unicapital Investments
1.28
0.89
2.67
0.36
1.49
1.25
2.86
3.94
3.57
4.16
1.63
6.40
0.00
4.07
2.41
2.20
(LUX)
Regulated
Investments IV - European Private Eq. ? 130.10
Investments IV - Global Private Eq. ? 187.03
-
-34.80 23.06
-45.04 10.43
Value Partners Hong Kong Limited
(IRL)
www.valuepartners-group.com, fis@vp.com.hk
Regulated
Value Partners Asia Dividend Stocks Fund A USD $ 7.86 Value Partners Classic Equity Fund USD Z Unhedged $ 14.85 Value Partners Classic Equity Fund CHF HedgedSFr 14.85 Value Partners Classic Equity Fund EUR Hedged ? 15.10 Value Partners Classic Equity Fund GBP Hedged � 15.67 Value Partners Classic Equity Fund GBP Unhedged � 18.40 Value Partners Classic Equity USD Unhedged $ 18.45 Value Partners Global Emerging Market Bond Fund $ 10.51 Value Partners Global Emerging Market Equity Fund $ 10.31 Value Partners Greater China Equity Fund $ 11.39 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 11.41 Value Partners Health Care Fund USD Class A Unhedged $ 11.48 -
0.05
0.04
0.05
0.05
0.06
0.05
0.06
-0.01
0.07
0.07
0.04
0.04
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Waverton Investment Funds Plc (1600)F
(IRL)
waverton.investments@citi.com
FCA Recognised
Waverton Asia Pacific A USD
Waverton Global Equity Fund A GBP
Waverton Global Strategic Bond Fund A USD
Waverton UK Fund A GBP
Waverton Equity Fund A GBP
Waverton Sterling Bond Fund A GBP
0.64
0.24
4.97
1.87
0.00
4.59
$
�
$
�
�
�
23.38
19.76
8.65
13.63
18.92
9.63
-
-0.02
0.01
0.00
0.02
0.03
-0.01
? 123.08
-
-0.24 3.86
WA Fixed Income Fund Plc
Regulated
European Multi-Sector
(IRL)
Single price: Based on a mid-market valuation of the
underlying investments. The buying and selling price
for shares of an OEIC and units of a single priced unit
trust are the same.
Treatment of manager?s periodic capital charge:
The letter C denotes that the trust deducts all or part
of the manager?s/operator?s periodic charge from
capital, contact the manager/operator for full details
of the effect of this course of action.
Exit Charges: The letter E denotes that an exit charge
may be made when you sell units, contact the
manager/operator for full details.
Time: Some funds give information about the timing of
price quotes. The time shown alongside the fund
manager?s/operator?s name is the valuation point for
their unit trusts/OEICs, unless another time is
indicated by the symbol alongside the individual unit
trust/OEIC name.
The symbols are as follows: ? 0001 to 1100 hours; ?
1101 to 1400 hours; ?1401 to 1700 hours; # 1701 to
midnight. Daily dealing prices are set on the basis of
the valuation point, a short period of time may elapse
before prices become available. Historic pricing: The
letter H denotes that the managers/operators will
normally deal on the price set at the most recent
valuation. The prices shown are the latest available
before publication and may not be the current dealing
levels because of an intervening portfolio revaluation
or a switch to a forward pricing basis. The
managers/operators must deal at a forward price on
request, and may move to forward pricing at any time.
Forward pricing: The letter F denotes that that
managers/operators deal at the price to be set at the
next valuation.
Investors can be given no definite price in advance of
the purchase or sale being carried out. The prices
appearing in the newspaper are the most recent
provided by the managers/operators. Scheme
particulars, prospectus, key features and reports: The
most recent particulars and documents may be
obtained free of charge from fund
managers/operators. * Indicates funds which do not
price on Fridays.
Charges for this advertising service are based on the
number of lines published and the classification of the
fund. Please contact data@ft.com or
call +44 (0)20 7873 3132 for further information.
?
18
FINANCIAL TIMES
Thursday 14 December 2017
MARKETS & INVESTING
INSIGHT
Currencies
Vitaliy
Katsenelson
Broker to allow bets against bitcoin
Twin trap for Tesla
investors trying to
predict the future
W
hen interest rates are at zero (or less), the
future is cheap and thus Tesla is trading on
rosy expectations. Therein lies the problem for Tesla?s investors, because the market eventually will want to see those
expectations become reality. Apple?s iPhone and Tesla?s
Model S both were ?game changers? in their respective
industries when they were introduced. The iPhone was an
enormous gamble. It pushed the limits of available technology ? microprocessor, screen, battery and wireless
capability ? beyond what seemed possible in 2007.
Undoubtedly, if Apple had not created the iPhone, someone else would have, but when? No one knows, but the
iPhone accelerated the arrival of the future.
It was the most important product invented in the
noughties. Its success gave birth to a half-trillion-dollar
smartphone industry. Hundreds of billions of dollars were
poured into R&D, accelerating development of technologies and applications unimaginable just a decade earlier.
This brings us to Tesla, the most important company
born in the US since Apple. Before Tesla, we equated electric cars to golf carts. Tesla has shown the electric car can
be equal and, in many ways, superior (high performance,
lower energy consumption, quiet ride) to the ubiquitous
internal combustion engine (ICE) car.
Tesla?s Model S will transform the auto industry dramatically. Consumers and car companies alike are starting to
look at ICE vehicles as relics, even though they still constitute 95 per cent of cars sold globally. It is clear electric (and
maybe fuel-cell) vehicles are the future and that may be
only a few years away. However, it would be much further
off without Tesla?s Model S, which was a paradigm-changer
in an industry that had not seen revolutionary changes
since Ford?s Model T.
Unlike Apple, though, Tesla may or may not be around
in five years. Mass-producing
a car is an incredibly difficult,
Tesla has shown
capital-intensive undertaking. Tesla has shown it can the electric car
make a phenomenal but
can be equal
expensive ($100,000) luxury
electric car, which addresses a and, in many
limited market. But on its
ways, superior
own, the Model S cannot justify Tesla?s current valuation.
For that, Tesla needs to mass produce hundreds of thousands of cheaper Model 3?s, a $35,000-$40,000 electric car.
At today?s valuation of about $50bn, Tesla?s shareholders are paying for future earnings, not the $650m in losses
the company had in 2016. In 10 to 15 years, Tesla needs to
make at least $4bn-$5bn in profits to justify today?s price.
Tesla?s car may be superior to ICE and other electric
vehicles in the market but a car?s main function is getting
you safely (and in relative comfort) from point A to point
B. Thus, the economics of Tesla?s Model 3 are grounded by
current ICE cars. Tesla cannot charge a significant premium above the competition.
The iPhone did not have real competition when it was
introduced, just $150 Nokia and $250 BlackBerrys. Apple
could charge $700 for the iPhone because the cost was subsidised by wireless carriers and the product was far better,
so the higher cost did not make it unattractive to most.
It is much harder for Tesla to do the same. Tesla?s cars are
competing with their ICE brethren as well as with electric
cars introduced by established carmakers. Even when car
factories are operating, they are losing a lot of money due
to fixed costs. Profitability requires producing a large
enough number of units to cover those fixed costs.
Tesla?s success will depend on its ability to produce hundreds of thousands of cars a year. But to get to that number
it will need financing. Bond investors will look at Tesla?s
losses and either refuse to lend to the company or demand
an interest rate that will make it look like a junk bond borrower?which,lookingatitsprofitabilityprofiletoday,itis.
The only other way to finance losses is by issuing stock.
The more expensive the stock, the cheaper the financing.
Thus, we arrive at the paradox of Tesla stock: Tesla?s success as a business and its value depend on the price of its
stock. If the stock price stays high, the company can issue
shares to finance its growth and cover its losses until it gets
to scale. If the stock price falls let?s say to $100, Tesla?s market capitalisation will be about $15bn. To raise $1.5bn,
Tesla shareholders will be diluted by about 10 per cent.
As a Tesla investor, one must be good at predicting the
company?s success as a business and its stock price level
before it turns a profit. Even if you get the first one right
but the stock price falls before the company becomes profitable, your interest in the stock may be severely diluted.
Vitaliy Katsenelson is chief executive at IMA and author of ?The
Little Book of Sideways Markets?
Interactive?s U-turn on
bear trades set to disrupt
cryptocurrency market
GREGORY MEYER ? NEW YORK
The biggest broker for bitcoin futures
says it will start to allow customers to
bet against the cryptocurrency, in a
move that could change the dynamics of
the nascent market.
Interactive Brokers will by the end of
this week give its customers the opportunity to take bearish ?short? positions
on bitcoin futures, said Thomas
Peterffy, its chairman, reversing a decision to allow only bullish, long trades.
Interactive was among the handful of
brokers that cleared the futures upon
their debut this week, handling what it
estimated to be 53 per cent of total bitcoin volume on Cboe Global Markets
during the inaugural session.
The move could influence the balance
of trading at Cboe, where bitcoin futures
began trading on Sunday, and at CME
Group when that exchange operator
launches a rival contract next week.
Mr Peterffy said he made the decision
after the bitcoin futures maintained a
premium to the cash bitcoin they track,
suggesting the market is out of balance.
?We realise that we have to open the
ability to short it,? Mr Peterffy said.
Speculators wanting to short bitcoin
futures this week have had to execute
trades through other brokers.
The arrival of futures on established
exchanges has given a stamp of legitimacy to the cryptocurrency, which
evolved outside the scope of regulators.
Mr Peterffy has been a sceptical voice
as bitcoin prices have climbed by more
than 1,700 per cent in 2017. He unsuccessfully urged regulators to require
separate clearing houses for cryptocurrency futures to prevent any market
blowout from destabilising derivatives
brokers.
Interactive indicated it would move to
protect itself by requiring short-sellers
to deposit five times the value of their
futures contracts to cover potential
losses, making negative bets significantly more expensive than positive
ones. There is no limit to the potential
losses on short positions if prices continue to shoot higher.
And Mr Peterffy expressed his doubts
about the wisdom of the positions he is
allowing clients to take. ?I think it?s suicidal to sell this contract, because it can
run away with you. How much a bitcoin
is worth, nobody knows,? he said.
He added that the market did not contain many ?natural shorts? such as
those in commodities markets where,
for example, farmers sell in order to
hedge the prices of their crops. ?On the
short side, there could be people who
have gotten into bitcoin at a much lower
?I think it?s
suicidal to
sell this
contract,
because
it can
run away
with you?
Thomas
Peterffy
price and they may want to realise some
of their gains,? Mr Peterffy said.
Accounts placing long bitcoin trades
through Interactive must post 50 per
cent of the contract value as margin.
With Cboe January-expiry bitcoin trading at $18,020 per contract on Tuesday,
that would mean a deposit of more than
$9,000, including margin required by
the exchange.
Given the higher risk of being short,
Mr Peterffy said that, at today?s prices,
margin for a single bitcoin short position
would be ?in the neighbourhood of
$100,000? at Cboe. At CME, where the
contract size will be five times larger,
margin for short traders would be
around half a million dollars. CME on
Tuesday raised clearing house margins
for its bitcoin futures to 43 per cent from
an original plan of 35 per cent, citing a
?normal review of market volatility to
ensure adequate collateral coverage?.
See Letters and Lex
Analysis. Equities
QuantConnect joins DIY push into mainstream
Platform faces test of freelance
coder model after opening up
to hedge fund subscribers
ROBIN WIGGLESWORTH
Jared Broad was a teenager when he
learnt a painful, but valuable, lesson:
humans are imperfect traders, and
emotionless machines are the future of
financial markets.
The 15-year-old had sold some old
dusty computers from a library he was
working at in New Plymouth, New Zealand and ploughed the proceeds into a
penny stock. His delight as it tripled
turned to horror as it quickly crashed to
zero.
Mr Broad, 33, is now founder and
head of QuantConnect, one of several
new platforms attempting to harness
the skills of freelance computer wizards
and data scientists who would rather
code an automated trading algorithm
than invest directly in the markets
themselves. This month QuantConnect
took a step out of the shadows, opening
up for outside hedge funds to ?subscribe? to the algorithms coded by its
users.
?It feels like it?s becoming mainstream,? he says. ?Computing power is
going up, the price of data is going down,
and you can find talent around the
world. There?s very real progress now.?
Yet QuantConnect faces a daunting
challenge, with better-funded rivals and
widespread scepticism that a ?crowdsourced? approach can master one of
the most complicated corners of
finance. Even Quantopian, one of the
highest-profile companies in the field,
has struggled to get its crowd-powered
hedge fund turning out a profit.
The setbacks have solidified the view
of many established quants that these
upstarts and their Silicon Valley-tinged,
fantastical visions of ?democratising?
investing will inevitably end in failure.
While their platforms might be useful
for quant dilettantes ? some of which
have managed to code some algorithms
that have made money ? scaling this up
to a lucrative business model will be
tough, the sceptics say.
Mr Broad acknowledges the obstacles,
and the fact that several of its rivals are
better-financed and more established.
But he remains optimistic that QuantConnect?s model will triumph. ?They
are the hare and we are the tortoise,? he
says of rivals.
It has certainly been a circuitous, tortoise-like journey to the world of
finance for the biomedical engineer
from New Zealand. After working a few
Jared Broad of
QuantConnect,
which faces
better-funded
rivals and
scepticism over a
?crowdsourced?
approach ? FT
montage; Bloomberg
years as an engineer in Auckland, he
sold all his belongings, paid off his student loans, and went travelling around
Asia, and eventually ended up at NGOs
working on humanitarian projects in
places like Myanmar, Haiti and Chile.
It was in Chile, after working on the
clean-up of the country?s 2010 earthquake, that he finally started designing
what became QuantConnect, helped by
a $40,000 grant from the Latin American country?s start-up incubator. By
early 2016 he and a Chilean co-worker
had decamped for an office in downtown Brooklyn so small they nicknamed
it ?The Cupboard?.
Money is a little easier nowadays.
QuantConnect raised $1m in January
2016, and some of its coders pay $20 a
month for its full package that allows
users to design, test and unleash trading
algorithms on stocks, currencies,
options and futures. In October it added
cryptocurrencies to its platform.
The company this month launched
what it calls ?Alpha Streams?, where
hedge funds can subscribe to follow the
signals generated by the 45,000 freelance coders on its platform. So far the
only sign-up is Tibra, an Australian
firm, but Mr Broad says he expects to
bring more hedge funds on to QuantConnect in 2018, offering them a way to
both find new talent and to tap into the
collective insight generated by its users.
This is a different business model
from the two best-known platforms for
aspiring DIY quant traders, Quantopian
in Boston and Numerai in San Francisco, generally viewed as the leaders in
the very niche but crowded field, which
run embryonic hedge funds powered by
their members? efforts.
Both have big-name backing from the
worlds of finance and technology, with
Steven Cohen?s Point72 and Andreessen
Horowitz invested in Quantopian, and
Paul Tudor Jones, First Round?s Howard
Morgan and Union Square Ventures
invested in Numerai.
Numerai?s Silicon Valley sensibilities
permeate its model. Its users download
free but encrypted financial data, using
artificial intelligence to sniff out pat-
terns that can lead to predictions. They
submit these predictions to Numerai,
which rewards the best ones with its
own cryptocurrency (Numeraire) and
uses them for its own hedge fund.
How successful this has been is
unclear, with Numerai declining to comment on its performance. Quantopian?s
hedge fund this summer began to take
in some external investment, but the
$52m vehicle has lost about 3 per cent
since launching, according to people
familiar with the matter, and this
autumn let its investment chief go.
John Fawcett, Quantopian?s founder,
insists that its 160,000-plus members
are producing enough good working
material in the form of profitable algorithms, but the challenge has been picking the right mix for its hedge fund?s
portfolio. He shrugs off the crows of the
sceptics.
?There are things we definitely need
to worry about, but what people think is
not one of them,? he says. ?The first
thing we can do to change minds is to
improve the performance.?
Commodities
Glencore tightens grip on cobalt as electric carmakers scramble for supplies
HENRY SANDERSON AND NEIL HUME
Shares in an African copper company
controlled by miner Glencore have
soared this month as investors scramble
to gain exposure to this year?s hottest
commodity ? cobalt.
Toronto-listed Katanga Mining has
seen its shares rise by more than 40 per
cent so far in December, following news
that it will more than double production
from its copper and cobalt mine in the
Democratic Republic of Congo by 2019,
a move that will make it the biggest global producer of the mineral.
Year-to-date, the miner?s shares are
up 1,100 per cent, a dramatic surge that
shows how investors are trying to position themselves as the electric vehicle
revolution accrues momentum.
Cobalt is a key metal for lithium-ion
batteries used in electric cars made by
Tesla and Volkswagen as well as in
smartphones made by Apple. Prices
have jumped 120 per cent this year to
$72,750 a tonne on the back of growing
demand.
The price has also been boosted by
investor stockpiling, led by Canadianlisted vehicle Cobalt 27, which bought
an additional 800 tonnes of cobalt this
week. It now holds 2,960 tonnes of
cobalt, worth around $220m.
The dramatic share price gains come
in spite of Katanga being forced to
restate its accounts because of irregularities and an enforcement investigation
by Canadian regulators.
Katanga is 86 per cent owned by Glencore, which is tightening its grip on the
global cobalt market, just as carmakers
look to secure supplies to fulfil ambitious rollouts of electric vehicles.
Led by chief executive Ivan Glasenberg, who has a reputation as a tough
negotiator, that could make it harder for
some of the largest carmakers to secure
supplies at the prices they want. In September, Volkswagen was rebuffed when
it tried to secure five years? of cobalt
supply at a fixed price.
In demand: core samples of cobalt, a
key metal for lithium-ion batteries
At an investor briefing on Tuesday,
Mr Glasenberg said the miner was in
talks with Tesla, VW and Apple, but he
made it clear that Glencore would not
sign fixed-price contracts.
?There are a lot of customers who
want to lock in a supply, but naturally
we will keep the price floating,? said Mr
Glasenberg.
Glencore is the largest producer of
cobalt, responsible for more than 20 per
cent of global supply, from the Mutanda
mine in the DRC as well as from its
nickel mines in Australia and Canada.
The ramp up of Katanga will further
its dominance with the Switzerlandbased company set to produce over
60,000 tones of cobalt by 2020, worth
over $4.7bn at current prices. Production from Katanga was suspended in
2015 to build a new processing facility,
which was completed this month.
Demand for cobalt is expected to rise
to more than 300,000 tonnes by 2030,
up more than 300 per cent from last
year?s supply, if the world meets a target
of 30m electric vehicles by 2030,
according to calculations by consultancy CRU. Over half of the world?s
cobalt comes from the DRC.
Mr Glasenberg said the country would
be unable to provide that amount of
cobalt, and carmakers would need to
find an alternative battery technology.
?
Thursday 14 December 2017
19
FINANCIAL TIMES
MARKETS & INVESTING
TRADING POST
Michael
Hunter
US indices soar despite concerns
over impact of Alabama election
Markets update
Change on day
12pt semibold S&P 500 index
Spare a thought for the Bank of
England. In a busy week for interest
rate announcements, its Monetary
Policy Committee, it can be argued,
has little room to manoeuvre.
Having reversed the 25-basis point
rate cut made in the immediate
aftermath of the Brexit vote, there is a
strong feeling that the ongoing
uncertainty created by the UK?s
departure from the EU leaves the
MPC stuck, even after UK consumer
price inflation came in at 3.1 per cent
this wee
Even though the inflation data
overshot policymakers? governmentmandated inflation target by 1.1
percentage points ? meaning the
BoE?s governor must write to the
chancellor of the exchequer to
explain ? the next action from the
MPC looks distant.
?With the further overshoot of
inflation coming so soon after the
BoE?s decision to raise rates for the
first time in a decade there should be
little need to do or say much more
than they already have,? argues
George Buckley, chief UK economist at
Nomura.
It means that the pound looks
unlikely to shift from its existing
trading range against the dollar,
according to Morgan Stanley, with
positive surprises more likely to give it
lift than negative shocks to cause
pressure.
?Sterling is attractive on weakness
for the time being and the Bank of
England is likely to remain peripheral
until at least February,? says Kamal
Sharma, FX strategist at the US bank.
michael.hunter@ft.com
UK equities and sterling
FTSE 100
8,000
7,500
7,000
6,500
6,000
Jun 2016
Global overview
? per �
1.30
1.20
1.10
1.0
2017 Dec
Source: Thomson Reuters Datastream
Democratic victory marks
setback for Trump tax
bill, while Italy?s imminent
poll unsettles equity and
government bonds
DAVE SHELLOCK
Wall Street cruised to yet more record
highs while the dollar edged back and
Treasuries rose as US inflation data and
political developments provided some
interest ahead of an expected rate rise
from the Federal Reserve.
Politics was also in focus in the eurozone as Italy?s election road map began
to take shape ? unsettling the country?s
equity and government bond markets.
Oil prices had a choppy session as participants digested the weekly inventories report from the Energy Information
Administration while gold steadied
after touching a five-month low on
Tuesday.
There was no stopping Wall Street as
the S&P 500 and the Dow Jones Industrial Average both hit intraday record
highs for a second successive session.
The latest peaks came as participants
managed to put aside initial concerns
about the implications of the result of
the Alabama Senate election.
By midday in New York, the S&P was
up 0.3 per cent at 2,671, the Dow was 0.5
per cent higher and the tech-heavy Nasdaq Composite had notched up a 0.4 per
cent gain.
?The victory of Democrat Doug Jones
for a US Senate seat in Alabama is a
major setback for President Trump?s
legislative agenda beyond the tax bill,?
said Philip Marey, senior US strategist at
Rabobank.
?Starting in January, the Republican
majority in the Senate will be reduced to
51-49. This will increase the pressure on
the Republicans to pass a tax bill before
the end of the year.?
cutting the Republican?s Senate
majority to 51 seats to the 49 for the
Democrats, as efforts to pass sweeping
tax reform proposals enter the final
stages.
But investors brushed off the result,
arguing that it should prove a catalyst to
pass tax reform before the year is out
and Mr Jones takes his seat.
?If anything it rushes the tax reform
through this year before the seat
officially changes hands,? said Peter
Tchir, chief macro strategist at Academy
Securities. ?It creates more impetus to
get things done quickly.?
Tax reform is seen as a boon for stock
markets, lowering the statutory tax rate
and allowing companies to repatriate
division with Npower, fell 0.8 per cent to
�.13.
Water utilities followed the trend,
with Severn Trent off 1.6 per cent to
�.86, after regulator Ofwat published
a methodology on permitted returns
ahead of a 2019 price review.
Ofwat set out a potential 2.4 per cent
cost of capital, which though lower than
consensus estimates of 2.6 per cent, was
based on higher inflation assumptions.
National Grid lost 1.1 per cent to
874.4p. Goldman Sachs highlighted that
Ofwat?s guidance was sharply below
National Grid?s permitted return of 4.33
per cent.
?While the return released today does
not directly feed into National Grid
reviews, it does serve as a direction of
travel for National Grid?s UK regulated
businesses,? said Goldman. Similar
terms ?would represent 25 per cent EPS
risk over the coming years?, it said.
The FTSE 100 ended 3.9 points lower
at 7,496.51. Leading the fallers, Ashtead
slipped from a record high, losing 5.4
per cent to �.49, after chief executive
Geoff Drabble raised more than �m
with a share sale at �.54 apiece.
Aviva fell 2.1 per cent to 501.5p after
Merrill Lynch downgraded to ?neutral?
with a 550p price target. It cited ?sparse
near-term catalysts? and tepid earnings
growth awaiting capital management
measures to take effect in 2019.
Sports Direct faded 1.4 per cent to
383.4p on a downgrade to
?underperform? from Jefferies.
The ?sketchy? evidence Sports Direct
has put forward so far on its flagship
store refit programme has
demonstrated very little improvement
in sales densities, which is at odds with
expectations that the retailer can
rebuild UK margins and take market
share, said Jefferies.
?Bottom line, institutional investors
need to question their involvement as
the strong rebound in the stock provides
a long-absent exit opportunity,?
Jefferies continued.
Dixons bounced 8.5 per cent to 181.6p
after its interim results, showing a 60
per cent earnings drop, proved no worse
than expected.
?Risks remain due to the high-ticket,
discretionary product pitch and
operational gearing, and the group
needs to improve cash flow,? said
Numis.
?However, in our view the valuation
at seven times calendar 2018 earnings
more than discounts this, at least for
more adventurous funds.?
2600
2400
Jan
2200
Dec
2017
Source: Thomson Reuters Datastream
Day's
Indices
S & P 500
Close
change
2671.40
7.29
DJ Industrials
24661.09
156.29
Nasdaq Comp
6892.82
30.50
Russell 2000
1204.70
-8.35
VIX
9.85
-0.07
US 10 yr Treas Bd
2.39
-0.02
US 2 yr Treas Bd
1.83
0.01
Joe Rennison and
Adam Samson
London
Centrica and SSE lose
spark after warning
from owner of Npower
Bryce Elder
Utilities held back the London market
as a profit warning from Innogy revived
competition concerns.
Germany?s Innogy said that Npower,
its lossmaking UK arm, has been
fighting back against market entrants
by shifting customers to cheaper tariffs.
In response, British Gas owner
Centrica was down 3.7 per cent to 139.5p
and SSE, which is merging its household
In Europe, the Stoxx 600 index
slipped 0.2 per cent and the Xetra Dax in
Frankfurt ended 0.4 per cent lower.
In Milan, the FTSE MIB index shed 1.4
per cent while the yield on Italy?s benchmark 10-year government bond, which
moves in the opposite direction to its
price, jumped 8 basis points to 1.78 per
cent.
Those moves followed reports in the
Italian press that general elections were
likely to be held on March 4 next year,
and that the country?s president could
dissolve parliament straight after
Christmas.
?At this stage, it is extremely difficult
to imagine the way forward for Italian
politics should elections deliver post-
overseas cash more cheaply. Volatility
has remained muted this year and by
some measures has dipped to its lowest
level on record.
The average difference between the
intraday high and low for US stocks hit a
new low this year, according to research
from Howard Silverblatt, a senior
analyst at S&P Dow Jones Indices.
The high-low spread sank to 0.1457
per cent on November 24 (the day after
Thanksgiving) ? the lowest for any day
since Mr Silverblatt?s records begin in
1962.
It is in line with the Cboe Vix volatility
index, a measure of implied volatility in
the US stock market and Wall Street?s
main volatility barometer, which
despite inching higher to 9.96 yesterday
remains well below its long-term
average of about 20.
Another way of looking at the same
theme is provided by Bank of America
Merrill Lynch?s equities derivatives
research team, who warned this month
of a ?bubble in apathy?.
The analysts note that in January
2017, the Dow Jones Industrial Average
traded in its tightest range since 1900.
Meanwhile, the S&P 500 index has been
bouncing back from declines at a
record-breaking pace.
But investors are also mindful that
volatility could pick up again in the new
year, assuming the support provided by
impending tax reform has passed and
money managers come back to markets
with fresh cash to put to work.
2800
The US stock market sustained its
upward march yesterday, as investors
played down fears that the Republicans?
loss of a Senate seat in Alabama might
reduce the chance of passing key
legislative proposals, including tax
reform.
The S&P 500 rose 0.2 per cent to
2,668 in morning trading in New York,
led by a 0.6 per cent gain for industrial
stocks and a 0.5 per cent rise for the
healthcare sector. The Dow Jones
Industrial Average moved 0.6 per cent
higher to 24,643 and the tech-heavy
Nasdaq Composite gained 0.3 per cent
to 6,879.
Roy Moore lost to Democrat Doug
Jones in Alabama on Tuesday night,
Getty
UK inflation of 3.1% breaches BoE target: FT.com/video
The Bank of England has missed its inflation target after prices
rose at the fastest rate for more than five years in November
election instability as we currently
expect,? said Fabio Fois, economist at
Barclays.
?Our baseline is for the formation of a
very wide and heterogeneous grand coalition. In addition, today?s news reports
reinforce the possibility that President
Mattarella may play an active role,
potentially to the point of naming a temporary prime minister to take charge of
governing the country for a short period
of time while either a coalition government is formed or new elections are
held.?
Meanwhile, longer-term US Treasuries rose as core US inflation data for
November came in on the soft side.
Headline consumer prices rose by a rel-
atively robust 0.4 per cent last month ?
although this was largely due to a 7.3 per
cent jump in gasoline prices.
The ?core? CPI, which excludes volatile food and energy prices, rose by a far
more modest 0.1 per cent in November,
which pulled the annual rate of increase
down to 1.7 per cent from 1.8 per cent in
October.
?Inflation is still below the Fed?s comfort range, but we anticipate a rebound
next year, which will require the Fed to
hike rates by 100bp in 2018,? said Paul
Ashworth at Capital Economics.
Harm Bandholz, chief US economist
at UniCredit, said the core CPI reading
had damped down expectations in some
quarters for the US central bank to
deliver a more hawkish commentary
with its rate decision.
?After all, why should the Fed change
a reasonable monetary policy outlook
when there is still some uncertainty
about when inflation will hit the 2 per
cent target,? he said.
Indeed, the yield on the 10-year
Treasury was down 2bp at 2.39 per cent
while that on the 30-year bond was 3bp
lower at 2.75 per cent.
The dollar, meanwhile, was down 0.3
per cent against a weighted basket of
rivals after hitting a one-month high on
Tuesday. The US currency was off 0.3
per cent against the yen at �3.21 while
the euro was up 0.2 per cent at $1.1759.
Oil prices remained volatile after
making strong gains earlier in the week
following the closure of a major North
Sea pipeline system.
US crude stockpiles fell by 5.1m barrels last week, according to the EIA,
while gasoline inventories increased by
5.7m barrels.
Brent oil was down 1.2 per cent at
$62.57 a barrel after earlier reaching
$64.32. It hit a two-year intraday high of
$65.83 on Tuesday.
Gold was up $2 at $1.245 an ounce as it
continued to bounce off yesterday?s low
of $1,235.
0.15%
2700
2650
2600
Nov
S&P 500 index
Wall Street
Investors see Republican
loss as catalyst to
pushing tax reform
9.6pt regular Change on day
for 1,2,3
2017
Dec
2550
US equities Industrial stocks were the
best performers in early Wall Street
trading as the S&P 500 and the Dow
Jones Industrial Average once again
hit record intraday highs
FTSE 100 index
Change on day
Nov
0.05%
2017
7500
7450
7400
7350
7300
Dec
UK equities Expectations for higher
US interest rates helped push the
financial sector higher, partially
offsetting weakness for housebuilders
and consumer stocks
Eurofirst 300 index
Change on day
Nov
0.30%
2017
Dec
1540
1530
1520
1510
1500
European equities The Italian market
lagged its main rivals in the region as
political uncertainty left the country?s
banking sector nursing its biggest
single-session fall since May
Nikkei 225 index
(?000) Change on day
0.47%
23.0
22.5
22.0
Nov
2017
Dec
Japanese equities Technology stocks
were a big drag on the Nikkei as they
took their cue from overnight losses
for their US counterparts
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20
Thursday 14 December 2017
Analysis. Currencies
SMART MONEY
Prospect of euro-sterling parity is receding
John
Authers
Passive phenomenon
sparks stewardship
and governance fears
C
an we entrust the governance of companies to a
small group of passive investors? The question
grows more urgent as the scale of passive
investment has grown and as the industry has
grown more concentrated.
There are many reasons to be nervous about the passive
phenomenon but stewardship and corporate governance
arguably top the list. Two issues predominate. First, will
passive investors be active when it comes to asserting their
rights as owners and act as good stewards for the companies they hold? Many argue that as they have no choice but
to hold the companies in the index and have a competitive
need to reduce costs, they will prove poor stewards.
A second issue is cross-ownership. Many new players are
entering the quasi-passive world of exchange traded funds
based on factor indices. But most passive investing is carried out by a dominant ?big three? of State Street, BlackRock and Vanguard. That means that these three companies will become common owners of many companies that
would normally compete directly against each other.
The point on stewardship may not be as serious as it
looks. But common ownership deserves careful scrutiny.
On the issue of stewardship, Morningstar released an
exhaustive analysis of how big passive firms (on both sides
of the Atlantic) vote their shares ? and it turns out the
more pressing issue is for active funds to behave more
actively. According to Hortense Bioy, who wrote the
report, it found that active managers backed management
as often as passive managers
did, thus arguably eschewing
The ?big three?
a chance to improve their performance.
become common
She said: ?There?s absoowners of
lutely no evidence that passive management has any companies that
impact on stewardship. And
compete directly
the fact that these groups also
manage active funds helps.?
The extra weight from their passive holdings gives companies like BlackRock an incentive to devote resources to
stewardship. Their active managers will have the weight of
the entire BlackRock passive holding in a company behind
them when they try to shake up a company management.
The main passive houses have all increased the staffing
of their stewardship departments, showing that they are
prepared to incur some costs. BlackRock and Vanguard
now have 33 and 21 staff devoted to stewardship, up from
20 and 10 three years ago. Passive groups have also
increased their number of ?engagements? with companies
while they are no more likely to vote with management
than active funds.
That said, they remain likely to vote ?yes?. In the last
year, the proportion of votes that passive managers cast
against managements varied from 22 per cent at Nomura
and 23 per cent at Deutsche to only 6 per cent at Vanguard.
The big passive outfits have made some big splashes
with their engagements. Perhaps the most important scalp
came this week when ExxonMobil agreed to publish more
about its possible impact on the climate, under shareholder pressure. State Street also garnered much publicity
from its ?fearless girl? statue in Wall Street, which publicised its attempt to put more women on boards. But Morningstar found that, away from the big splashes there is a
lack of disclosure as to exactly what they are doing when
engaging with companies they own. The issue is important
and they must publish more.
Meanwhile, cross-ownership may be a more difficult
issue to deal with. Pictet Asset Management, a large active
asset manager, this week published a report showing that
cross-ownership of the biggest US companies has grown
across all sectors in the last 10 years. This is largely because
of the big three passive investors, who appear at the top of
virtually every share register. Tech, healthcare, financials
and industrials show the highest concentration. Does this
matter? Supriya Menon, Pictet?s senior macro strategist,
argues that it does. Studies of airlines and banking have
shown that ticket prices tend to rise, and deposit rates to
fall, once there are high levels of cross-ownership. Such
behaviour is logically in the interests of the joint owners.
It is questionable whether Vanguard or State Street
assert themselves so actively as to push companies in this
direction ? but this is an issue that the passive industry,
and particularly the big three, will have to address.
john.authers@ft.com
More comment and data on ft.com
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Investors sense the pound will
gain further ground but few
expect major rally next year
Euro
Against sterling (� per ?)
0.95
0.90
ROGER BLITZ
When a euro was worth as much as 93p
during the summer, two things dawned
on investors: the euro-sterling exchange
rate was heading for parity and the currency pair was the best proxy for evaluating Brexit.
In which case, the market view now is
that Brexit risk for the UK is abating.
Since that nadir for the pound following
a 10 per cent fall over the summer, the
UK currency has since clawed back 6
per cent against the single currency.
The idea of parity now seems farfetched, with the euro?s value having
dropped back to 88p. And while that
still represents an 11 per cent decline in
euro-sterling from the levels before the
2016 referendum, the investor mood is
cautiously optimistic about sterling.
Sterling is ?one of the most mispriced
G10 currencies, and sentiment is still
way too bearish on the UK (economy)?,
says Stephen Jen of Eurizon SLJ Capital.
?In fact, I would not be surprised if, a
year from now, the pound turns out to
be the best-performing currency [based
on risk-return ratios] in the world.?
Is such confidence justified? While
much depends on Brexit negotiations,
there is an argument that investors are
turning their attention elsewhere. With
the European Central Bank and the
Bank of England both meeting today, it
is tempting to take a breather from the
Brexit cut and thrust and focus on economic fundamentals.
Investors will need to put this theory
to the test the next time a significant
piece of Brexit news arises. Euro-sterling trading is likely to experience ?long
periods of boredom punctuated by
moments of sheer terror?, says Jeremy
Cook, economist at World First.
Others sense a shift. Marianna Georgakopoulou, multi-asset strategist at
0.85
Dec
2016
Annual % change
3.0
Eurozone
UK
The cost of gas for the UK?s
energy needs eased 5p to 68p
a therm, though it remains
up 17 per cent since the
beginning of the month. The
price for delivery in January
dipped nearly 5p to 60.85p.
Fears of a supply crunch
have risen during the cold
snap gripping the country,
prompted by the closure of a
North Sea oil and gas pipeline that is expected to cut as
much as 40 per cent of daily
supply into the new year.
A surge in gas prices on
Tuesday also reflected an
explosion at Austria?s Baumgarten gas import hub, the
main conduit for Russian
supplies into Europe. The
operator Gas Connect Austria said that the main arteries supplying neighbouring
countries came back online
late on Tuesday.
Same-day UK gas prices
rose almost 50 per cent to a
high of 99p a therm on Tuesday ? the highest since 2013.
The shutdown of the Forties Pipeline System caused
the closure of the British
North Sea Elgin-Franklin
and Britannia gasfields.
Yesterday, the UK?s gas
system was undersupplied
by 27.8m cubic metres as
demand fell short of flows,
National Grid data showed,
but the UK government
stressed that the country had
adequate import capacity.
The pipeline outage has
also reduced supplies of
Forecast
2.5
2.0
1.5
2015
16
17
18
1.0
Sources: Thomson Reuters Datastream;
European Commission Autumn Forecast
Mario Draghi,
president of the
European
Central Bank.
Investors are on
the lookout for
signs that the
ECB will tighten
monetary policy
Alex Kraus/Bloomberg
UK natural gas prices
stay near 4-year peak
UK natural gas prices stayed
near their highest level in
four years yesterday, reflecting supply disruptions in the
North Sea, but the reopening
of a European hub for Russian imports helped to ease
concernsovershortages.
0.80
Dec
Real GDP growth
Commodities
ANJLI RAVAL
OIL & GAS CORRESPONDENT
2017
North Sea crude oil by
450,000 b/d, boosting oil
prices to the highest in more
than two years.
Brent crude, the international oil benchmark underpinned by supplies from the
North Sea, jumped to almost
$66 a barrel on Tuesday.
Prices have since eased to
$63.76 a barrel.
Alongside short-term supply and demand dynamics,
oil market watchers are also
looking ahead to 2018.
Opec revised higher its
output growth figures from
producers outside of the cartel for this year and next, saying production ? particularly from US shale fields ?
presented ?considerable
uncertainties?.
?US, Canada and Kazakhstan have been the key
contributors to the upward
revisions,? said Opec. ?The
momentum seen this year is
expected to continue in 2018
on the back of increased
investment in US tight oil
and improved well efficiency.?
The performance of US
shale oil producers is in focus
as industry watchers judge
the effectiveness of supply
cuts led by Opec and countries such as Russia, which
have been extended for the
duration of 2018.
Ahead of a meeting of oil
ministers in November, Russia pushed for guidance on
when the supply curbs would
end, as domestic oil companies expressed concern about
US producers taking advantageofapricerebound.
Saudi Arabia has said it is
?premature? to discuss an
exit strategy as global inventories remain above their
five-year average, meaning
producers had more work to
do to ease bloated stockpiles.
Ashburton Investments, thinks that
over time sterling and the euro will
become ?desensitised? to Brexit.
There is enough Brexit risk premium
baked into sterling, she says. ?It is very
possible that we will see at certain times
Brexit drivers taking a back seat and
fundamentals driving the currency,?
adds Ms Georgakopoulou.
Among those drivers will be the UK
and eurozone growth performances and
inflation, she says, and in both instances
they point to sterling gaining further
ground on the euro. Lofty expectations
for eurozone growth may be hard to
meet, while UK inflation may be starting to normalise, despite last month?s
tick-up in CPI to 3.1 per cent.
Much depends on monetary policy.
Investors are on the lookout for signs of
the ECB speeding up the pace at which it
puts its loose policy strategy into
reverse. For the Bank of England, the
focus remains one of gauging what the
progress of Brexit talks and a likely transition deal means for the UK economy.
Jefferies economists expect Mario
Draghi, the ECB president, to reveal ?as
little as possible? this week. Any sign of
Brexit talks progressing ?should provide
the BoE with more confidence to continue normalising policy and encourage
a stronger pound?, says MUFG currency
analyst Lee Hardman.
But politics will never be very far from
investors? thoughts. Marine Le Pen?s
defeat in the French presidential election was a significant contributor to the
euro?s 2017 rally, but investors risk
ignoring electoral trends on the continent, according to Bank of Montreal?s
Stephen Gallo. ?You have a swing to the
right,? he says. ?You have a very fractured situation politically and that came
out in the German election result.?
The Italian election, expected in
March, and the outcome of German coalition talks will be ?a big deal?, he says.
Mr Gallo is one of a clutch of analysts
expecting a modest appreciation in sterling?s value against the euro. ING thinks
the 85p level could be tested in the first
quarter should the Italian election put
the euro under pressure and a transition
deal generate a positive reassessment of
the UK economic outlook.
?With a range of indicators suggesting
that the UK economy is at a standstill, a
reduction in medium-term uncertainty
may rekindle some of the ?animal spirits? among consumers and firms ? and
see more cash put back to work over the
coming year,? says ING?s Viraj Patel.
All that may yet be swallowed up by a
distinctive ECB shift towards monetary
tightening. The consensus forecast is for
the currency pair to stay broadly on an
even keel through 2018, according to
Reuters. It may not amount to much,
but after 18 months of Brexit-induced
volatility, that may represent something
of a win for the pound.
FT SPECIAL REPORT
The Race for Talent
www.ft.com/reports | @ftreports
Thursday December 14 2017
When specialists earn ?scary salaries?
Tech groups must
capture the most-skilled
experts or risk falling
behind, reports
Helen Barrett
S
imon Raymer has a problem.
The chief information officer
of Fraedom, a global
company specialising in
payments and expenses
systems, is perpetually hunting for
technology talent.
To innovate and grow, the company
must hire experts. It needs workers who
understand technology ? developers,
systems architects and people with coding skills ? with a record of solving
problems.
Yet many other companies all over
the world are looking for the same
expertise.
?The scarcity is global,? says Mr
Raymer. ?As soon as you start talking
tech, especially fintech talent with good
experience, it is very rare.? The Londonbased company employs 200 developers. Such is the scale of the competition
that at any one time it is trying to fill
between 50 and 100 vacancies.
Conventional recruitment methods
do not cut it in this market. ?You can?t
just put out an advert and expect people
to come clamouring for the job,? says Mr
Raymer. ?We have three dedicated
recruiters working full-time, scanning
LinkedIn and going out and spreading
the word.?
While it has a San Francisco office,
Fraedom is not a large, cash-rich Silicon
Valley company. Neither is it a lean,
scrappy start-up, offering the stirring
possibility that it may change the world
and make employees with stock options
very rich. It is a mid-sized, privately
owned company founded in 1999, and it
must find a way to persuade the best
technology talent to choose to work
there. If it does not, it risks falling
behind.
As some of the world?s biggest companies bet on technologies like self-driving
cars, artificial intelligence and virtual
reality, demand for tech talent is escalating ? and so are the salaries and
perks commanded by those who can
build and run those technologies.
How likely a company is to attract
that talent depends on where in the
world it is. In Japan, with its relatively
restrictive immigration laws, more than
86 per cent of businesses struggle to
recruit talent, according to data from
ManpowerGroup, the US recruiter. This
Constant struggle: Simon Raymer of Fraedom says he needs to fill 50 to 100 vacancies at any one time ? Jessie Casson for the FT
Career choice It?s not just money: skills, flexibility and brand matter, too
A recent survey by ManpowerGroup found that while
59 per cent of job candidates around the world identified
compensation as a primary concern shaping their career
decisions, work type (53 per cent), flexibility (38 per cent)
and company brand (20 per cent) are increasingly important.
?People now prioritise learning and new skills,? explains
Becky Frankiewicz, the recruitment company?s North America
president. As technological innovation forces many
employees to develop skills to stay at the cutting edge of
their sector, Ms Frankiewicz says: ?In the future, the haves
The world?s leading
tech employers
By number of employees (?000)
0 200 400 600 800
Hon Hai/Foxconn
IBM
Accenture
Amazon
Samsung
Hitachi
Panasonic
Flex
Canon
Pegatron
Hewlett Packard
Huawei
Onex
Source: Fortune Global 500
and the have-nots will be divided up by who has the skills.?
In the UK, Australia and parts of Scandinavia, type of work
has eclipsed pay as the most important consideration.
In another survey conducted by the company, four out of
five millennials said they would change jobs for a role with
the same pay that offered better training opportunities.
Meanwhile, 87 per cent of respondents said they would
consider gig economy roles such as contract, temporary and
freelance positions for their next job.
David Robinson
compares with a global average of a little
less than 50 per cent.
The global data cover all roles, but the
technology industry was cited as the
second most-difficult to recruit for. The
US and Europe fare somewhat better on
the tech front.
Technology is a well-paid sector and
salaries vary depending on specialisms.
At Fraedom, says Mr Raymer, joiners
earn ?market salaries? of between
�,000 and �0,000 a year, with
PhDs and other specialists commanding
?scary salaries?. For Harvard Business
School MBA graduates who work in
technology, median salaries have risen
from an annual $115,000 to $130,000 in
just five years. At the other end of the
scale, start-ups with limited funds for
high salaries must find creative ways to
lure talent.
A nimble, creative company with
a sense of mission and disruption
is a big draw for workers, but only up to
a point.
Many expect rewards for risk in the
form of stock options ? where the
worker forgoes a high salary in lieu of a
stake in the company.
In the US, employee stock options
have helped attract the world?s best talent to early stage ventures, but in
Europe and Asia, such perks are less
common.
Research by Index Ventures, the techfocused venture capital firm, suggests
that employees in Silicon Valley receive
double the reward for risk of their
European counterparts, where such
benefits are often reserved for the
most senior executives. It says on average, employees own 20 per cent
of late-stage start-ups in the US, versus
10 per cent in Europe.
The authors say this uneven state of
affairs holds back the European technology sector as it tries to compete
for workers. Index produced a league
table of European countries that
showed how, in terms of broad equity
ownership by employees, the UK has
created the most favourable conditions,
with Germany?s and Spain?s the least
favourable.
Europe?s founding investors are less
keen to accept a diluted return than
their US counterparts, says Dominic
Jacquesson, director of talent at Index.
Diluted return ?is short-term pain but
you could have a share of a bigger pie in
the long run,? he says.
Mr Jacquesson says even a relatively
straightforward ecommerce venture
needs a complicated and expensive set
of skills, including some roles that he
describes as ?semi-tech?.
?As you scale up, you need a worldclass team around you. Hyper-growth is
a skillset in itself. How do you build
brands in the superfast timescales of
technology?? In Silicon Valley, he says,
?even the office manager will negotiate a
salary with stock options?.
One tech company that offers reward
for risk to all staff is Farfetch, the
London-based fashion retail platform,
through a scheme called Farfetch for
All, started this year. The company has
2,000 employees in 11 offices around
the world, with employees from 57
nationalities.
Sian Keane, executive vice-president
of people, says that, in the context of
hyper-growth ? Farfetch grew more
than 70 per cent over the 12 months
to the end of 2016, based on the
value of goods traded ? the scheme
fosters cohesion. ?We are trying to create a sense of community across different markets ? London is no more of a
headquarters than Portugal,? she says.
Meanwhile, Fraedom?s hunt continues. The company may be neither a
start-up nor a member of the Fang
group (Facebook, Amazon, Netflix and
Google), but it does have some oldfashioned advantages.
?If you work for a start-up, you are
never sure your pay cheque is going to
arrive,? says Mr Raymer. ?And
if you work for a big company, there
is surface glamour and perks, but
it is hard work.? So the company positions itself as a friendly employer with a
limited hierarchical structure, where
tech teams are given autonomy to solve
problems. It also helps that the company has been around for 20 years. As
Mr Raymer points out: ?Young people in
their late 20s and early 30s often want a
house, a family ? and a bit of stability.?
Inside
Message that chills
expatriates
Skilled immigrants shun
the UK and US in
anticipation of new
immigration laws
Page 2
It takes all sorts to
make a better company
Justine Roberts, founder
of Mumsnet, on diversity
in the workplace
Page 2
Look for talent within
your team first
The importance of new
skills and why
?learnability? is key
Page 2
In search of ?aliens of
extraordinary abilities?
The number of men and
women who change
nationality for top
sporting contests
comes under
scrutiny
Page 3
A joint special report
Japan Classroom experimentation points the way forward for the next generation of workers amid a scarcity of recruits
International school gives
children a global upbringing
Education
Social skills, languages and
appreciating others? views
are key to future success,
says Nikkei?s Shotaro Tani
The pupils were chatting away but neither of the two teachers had to raise
their voice. Anyone who has had to sit
through the tedium of classes in Japan,
where normally you can hear a pin drop,
would have felt green with envy.
?That doesn?t look right. How about
changing this word?? one pupil says to a
classmate in English. ?Why don?t we
make the photos bigger for the presentation?? says another in Japanese.
The nine to 11-year-olds were collaborating while switching between English
and Japanese ? an everyday scene at the
New International School of Japan in
Tokyo. ?If you visit any other international school, some have signs saying
?Speak English?,? says Steven Parr, the
headmaster. ?Language-use rules are
very common. Usually they say ?speak
Japanese only in the Japanese class and
speak English everywhere else?.?
Instead, his school, where 70 per cent
of students are from mixed nationality
or foreign families, encourages translanguaging: using more than one language at the same time. ?Language is a
tool for expression,? says Mr Parr. ?The
kids can think, speak and do research in
any language.? Sending children to
international schools is popular with
Japanese parents who can afford to give
their offspring an edge associated with
knowing English.
Japan has a low level of English proficiency and is ranked 59th of 63 countries for language skills by IMD, the
Swiss business school. The number of
students at English-language international schools reached 12,452 this year,
up 27 per cent from five years ago.
Yet as more parents realise that just
speaking English is not enough in
an increasingly globalised world, so
the appeal grows of a comprehensive,
multi-cultural approach to education
such as that offered by New International, which charges four times as
much as Japanese private schools. Says
Akihiro Nojiri, a senior manager at a
consultancy, whose six-year old son is at
New International: ?We came to think
that truly international talent must be
proficient in their mother tongue and in
English, as well as having a deep understanding of multiple cultures.?
The school, founded in 2001 by Mr
Parr, who was keen to try new teaching
methods after working at another international school in Japan, takes students
from kindergarten to the end of secondary school. It receives applications for
its summer-school from China, Singapore and the US. New International is
also in line with the Japanese government?s policy goal of nurturing ?global
talent? as the country comes to grips
with the limitations of an ageing,
shrinking population and the need to
look overseas for future growth.
Ironically, by sending children to
schools like New International, parents
technically break Japan?s education law,
which obliges parents to send their offspring to regular ?Article 1? Japanese
schools. Japanese parents with children
in international schools are often called
by education boards, which ask why
their child is not at a Japanese school.
One such couple are Mizuki Hirai and
his wife Ayumi, whose children aged 10
and seven are at New International.
Ms Hirai says: ?It?s not that I am
against sending kids to Article 1 schools.
Even if some people think I am not providing my children with compulsory
education, I?m confident that it?s a quality education.? Her husband agrees.
?Our eldest had a South Korean friend
who could speak Japanese, English,
Korean and Chinese,? he says. ?We had
hoped he would develop his English
but he was so inspired by his friend
that he learnt Korean. It?s not what
we had in mind, but it is international
nonetheless.?
New International is keen to emphasise that English is not the be-all and
end-all of developing global talent.
?Language skills could be important,
two or more languages is obviously
great,? says Mr Parr. ?I also think social
skills, being able to see things from a different point of view [is important].? He
Bosses face life-anddeath struggle
Demographics
Failure to hire new blood
dooms companies to decline.
Robin Harding reports
Collaboration: pupils translanguaging
says the school?s multi-age learning
environment helps hone these skills.
Classes include pupils from three grades
with the older ones helping the younger
ones. Once they move up a year, they
return to the bottom rung. The aim is to
prepare pupils for careers in which they
may have to assume different roles at
different times.
The school also eschews Japan?s much
criticised rote-learning in favour of an
interdisciplinary approach. Pupils are
given a theme at the start of a 12-week
term in which they learn various disciplines. If the theme is, say, water, they
learn maths by measuring rainfall,
alongside Chinese characters related to
water. ?Japanese schools tend to make
you remember one definitive answer
and that doesn?t happen at this school,?
said Minako Yamamoto, 16, who spent
three years at a regular primary school
before joining New International.
?When you are told to memorise an
answer before knowing the joys of learning, that makes you hate studying.?
Every year, Mitsuhiro Wada has to
recruit up to 900 new graduates in a
country with an ultra-low unemployment rate of 2.8 per cent and a declining
pool of young people at university.
?The market is very tough. There?s a
huge amount of competition,? says Mr
Wada, head of recruitment at Daiwa
House, one of Japan?s biggest construction companies and a leading hirer of
graduates. ?It?s even tougher than it was
in 2007 or 2008.?
After five years of economic stimulus
under prime minister Shinzo Abe, and
with the working age population in
steep demographic decline, Japan?s big
companies are engaged in a ferocious
contest for talent.
Given that lifetime employment is
still the norm for many graduates, failure to hire new blood can doom even
established corporations to long-term
decline, as they will struggle to bring in
good staff who are at later stages of their
career.
?The construction industry is cyclical
and there were periods when recruitment was limited,? says Mr Wada.
?As a result, we have relatively
few staff in their 30s and we want to
maintain balance.? The outlook for
Japan?s construction sector has
improved since Tokyo won its bid to
host the Olympic Games in 2020. Daiwa
House is targeting rapid growth in sales
and has recruitment targets to match.
?We intend to be a winner and see the
opportunity to expand market share,?
Mr Wada says.
Hiring in Japan is still dominated by
the annual graduation season, with
companies following a set of voluntary
rules that govern when they can interview and make offers. Once a graduate
joins, they will enjoy steady progression
and annual pay increments until they
reach a fixed retirement age ? normally
60, although this is rising.
While the country?s broader labour
market is booming, with the overall
jobs-to-applicants ratio at its highest
level since the mid-1970s, the ratio for
graduates is still below its 2007-08 peak
and well below the levels of the 1980s
bubble economy.
That is partly because companies
have grown more disciplined about hiring through the economic cycle, says
Akihito Toda, chief analyst at the
Recruit Works Institute, a research
group. ?Recently the pattern has been
not to boost hiring so much because the
economy has got better,? he says.
That, though, hides a gulf between
prestige recruiters such as government,
automakers and the big banks on one
hand versus less popular sectors such as
Continued on page 2
?
2
FINANCIAL TIMES
Thursday 14 December 2017
The Race for Talent
Diversity ? nobody does it perfectly and help is at hand
OPINION
Justine Roberts
Diversity makes your business stronger
? of that there is no doubt.
This is partly about talent. If
recruitment processes are damaged by
unconscious bias and systematic
failures, or if we repeatedly hire the
people who remind us of ourselves, we
end up fishing in a shallow candidate
pool.
For any business with customers or
end users, however, diversity is also
about understanding and reaching the
broadest possible market.
A diverse workforce helps to divert
management from cognitive grooves
and enables it to identify opportunities
others will miss.
If major film studios, for instance,
had a greater proportion of older
women executives, they might not
have repeatedly turned down the idea
for the acclaimed The Best Exotic
Marigold Hotel. When I had the idea for
Mumsnet almost two decades ago and
was trying to raise investment funding,
one fund manager airily told me he
would put money in only if I took a
step back.
He wanted someone else to run the
business ? a man, naturally, because
that was his idea of what a chief
executive should be, even of an
organisation designed to appeal to
women.
Be in no doubt that discriminatory
hiring is a problem: a 2009 study by
the National Centre for Social
Research, an independent social
research institute headed by the UK
government?s Department for Work
and Pensions, found that candidates
with ?white sounding? names got
positive responses to one in every nine
(randomised) CVs sent out, while
candidates with names that indicated a
Bame (black, Asian and minority
ethnic) background got one positive
response for every 16.
The Spectator magazine is notable
among those trying to address the
problem. It has dispensed with CVs ? a
policy its editor Fraser Nelson
describes as not ?anti-posh?, but ?pro-
talent?. The flurry of positive coverage
about The Spectator?s move was a
bonus. Younger people in particular are
paying attention. While they are ready
to punish perceived failures (with
reputational fallout), they are also
ready to reward those who are trying to
get better.
So if all this has you cowering under
your desk, there are two bits of good
news. The first is that lots of businesses
are beating a path for others to follow.
You can have brilliant policies
but if senior managers are
not seen to use them,
they will be less valuable
The second is that no company or
sector does this perfectly: nearly every
organisation struggles to be
representative. Admitting that you
need to improve draws a positive
response. There are some outstanding
examples of forward-thinking practice,
not just in tech but in traditional
sectors. One example is Timpsons, a
UK shoe repair chain ?which hires?
former offenders. After a year, more
than 90 per cent are still working there.
Senior management buy-in is crucial,
with more big companies creating
?head of diversity? posts. Perhaps
unsurprisingly for an industry that
hopes to be invited into the homes of
the British public on a regular basis,
national television channels have been
working on this for some time.
After a spate of stories about the BBC
being ?hideously white?, Tunde
Ogungbesan was hired as head of
diversity, inclusion and succession in
2015, with a �1m fund to improve
Bame representation.
One lesson from Mumsnet?s Family
Friendly programme, which
encourages businesses to adopt flexible
and effective working practices, is that
culture is key. You can have brilliant
policies but if staff do not see senior
managers putting them into practice,
they will be less valuable.
We see many examples of employees
having flexible working requests
denied because line managers cannot
face working through the challenges
involved, in spite of pitch-perfect
policy documents. The same stasis can
undermine the best recruitment plans.
Training and reinforcement are
necessary until the practice becomes
second nature. Openreach, a division of
BT, the UK telecoms group, retrained
its managers to help them consider
more carefully the core competencies
required for 1,500 customer-service
engineer jobs on offer. To support
candidates from different
backgrounds, they had four mantras:
?We don?t recruit in our own image?,
?We can train people to do the
technical stuff?, ?Relationships are
much more important? and ?We look
for aptitude not experience?.
It is not all about internal processes:
you also need to ensure talented
candidates see your job ad. One
advantage of jobs boards is that many
specialise in under-represented
candidates. When the people you are
targeting click through to your site, it is
important they see some evidence that
diversity is a genuine goal rather than a
box you tick as part of your
recruitment process.
The writer is founder and CEO of Mumsnet
Not welcome:
the message
that chills
expatriates
Mobility Skilled immigrants shun the UK and US
in anticipation of new laws, says Sarah Murray
A
s competition for global talent intensifies, some countries are scoring own goals.
These include the US,
where the Trump administration wants to make drastic cuts to
immigration, and the UK, which last
year voted to leave the EU, with immigration being a key concern for those
opting for Brexit.
While most rules have yet to be
altered, the expectation of change in the
UK is influencing what skilled workers
decide to do. Nearly half of highly
skilled EU workers are thinking of leaving Britain in the next five years, says
Deloitte, the professional services
group.
For some UK industries, the implications are particularly serious.
The Nursing & Midwifery Council
says the number of nurses and midwives from Europe leaving its register
rose 67 per cent in the 12 months to
November. The number joining the register from the EU fell 89 per cent.
Academia is also being affected by the
prospect of losing EU research funding.
?In our business, the biggest impact has
been on the higher education sector,?
says Albert Ellis, chief executive of Harvey Nash, the London-based executive
search group.
The situation in the US is similar. In
California, a court ruled that only parts
of President Donald Trump?s travel ban,
which will bar people who come from
six Muslim-majority countries, could be
enacted.
The message is clear, even without
substantial changes in the law.
The anti-immigration sentiment that
was partly responsible for Brexit and
the election of Mr Trump has created an
environment in which many overseas
professionals no longer feel welcome.
?Perception is everything,? says Mr
Ellis. ?Candidates are now more concerned about relocating their families
and they?re very concerned about lack
of tolerance in the US and the UK.?
Jonas Prising, ManpowerGroup chief
executive and chairman, agrees. ?The
rhetoric appears to have a detrimental
effect,? he says ?It has an immediate
chilling impact on individuals who have
skills that they can deploy somewhere
else, where they feel welcome.?
Even uncertainty about the future of
immigration is enough to deter professionals who may otherwise have considered relocating to the US or UK.
?When most people think of career
plans, they think medium to longterm,? says Hakan Enver, London operations director of financial services at
Expectation of
change: many
skilled workers
are concerned
about lack of
tolerance in the
US and UK
Boston Globe via
Getty Images
Morgan McKinley, the recruitment
group. ?People are being put off by what
could happen in the future.?
Beyond legislative changes, other government measures suggest an environment that is less open to overseas professionals. In the US, for example, the
administration has said it will increase
its scrutiny of skilled-worker visa applications and US immigration and customs is considering a big increase to
staffing. ?That additional hiring signals
that employers in the US may face a
greater likelihood of being investigated,? says Betsy Morgan, head of the
global immigration and mobility practice at law firm Baker McKenzie.
While the US restricts its borders,
other countries are opening theirs
wider. Last month Canada said it would
increase efforts to encourage immigration. ?We are emphatically and
unapologetically taking the opposite
approach,? said Ahmed Hussen, the
country?s immigration minister, on
announcing the plan.
The strategy, which Mr Hussen said
would result in ?the most ambitious
immigration levels in recent Canadian
history?, includes increasing targets for
economic migrants to foster innovation,
fill skills gaps and offset the effects of an
ageing population.
?The
message
has been
sent and
interpreted,
and the
effects are
immediate?
Others are using tax incentives to
attract global talent. In November last
year, for instance, Ireland extended till
2020 its special assignee relief programme, which provides tax relief for
certain people assigned to work in Ireland from abroad.
Meanwhile, in the UK, European
migrants think about going home. For
some, the incentive is stronger now,
because their country?s prospects are
better than when they left.
?In Poland, there are skill shortages,
salaries have gone up, the economy is
doing well,? says Mr Prising.
Governments will have to strike a difficult balance. While they want to
respond to voters who favour limits on
immigration, they must ensure that
their countries continues to attract people with skills. ?In developing immigration laws, lawmakers walk a tightrope,?
says Ms Morgan.
Given that rapidly ageing populations
will exacerbate skill shortages, this tension is likely to increase. Efforts to promote openness and build a globally
diverse workforce can become lost amid
signals suggesting that talent from overseas is no longer welcome.
?The message has been sent and
interpreted ? and the effects are immediate,? says Mr Prising.
Challenges: Mitsuhiro Wada
Bosses face
life-anddeath
struggle
Continued from page 1
retail, social care and construction on
the other.
?Those that can hire easily don?t see
recruitment as a big issue. On the other
hand, companies that are already struggling aren?t thinking ahead, they?re trying to compete right now,? says Mr Toda.
Smaller companies face a particular
struggle. ?According to our survey this
year, more than 50 per cent of small and
medium-sized companies couldn?t
recruit the number of graduates they
wanted,? says Tomonori Sugisaki at the
Japan Chamber of Commerce.
Companies are responding in a variety of ways but not, in general, by raising pay. Since Japanese graduates
expect a job for life, the starting salary is
not very salient; they choose based on
the perceived stability, reputation and
comfort of an employer.
At Daiwa House, Mr Wada is trying to
support a greater diversity of working
styles, including making life easier for
working mothers. It is also dropping a
traditional Japanese requirement: that
the employee move to wherever the
employer assigns them. ?We?ve started
a system where you can designate a
region in which you want to work,? he
says. ?We?re trying to provide a custommade way of working for new staff.?
One thing Japanese companies have
not yet done, apart from a very few
globalised manufacturers, is look
abroad. Even though Daiwa House?s
overseas business is growing fast, ?at
present, we still just think in terms of
recruitment in Japan,? says Mr Wada.
Another question that is receiving
some attention is what to do with the top
tier of talent. Traditionally, Japanese
companies like to take their time
and move each cohort through a succession of jobs, steadily winnowing the
numbers as they move up the corporate pyramid.
But even the most popular companies
are finding that twentysomethings are
unwilling to grind their way upwards
and are instead quitting to join a
start-up or a charity. ?Some companies
are now considering whether they need
to adopt a fast track,? says Mr Toda.
The outlook for recruitment only
becomes harder. From next year, the
number of students entering Japanese
universities will start to fall steadily, as
the last demographic echoes of the baby
boomers fade away. From 2022, those
smaller classes will start to graduate.
Contributors
Helen Barrett
Work and Careers editor
Robin Harding
Tokyo bureau chief
Shotaro Tani
Nikkei journalist
In need of talent? Look closer to home first
Hiring and development
Stefan Stern sets out
the ingredients of
a ?growth mindset?
If managers want their business to be
stronger and more competitive they
need a ?growth mindset?. This is the
term coined by Carol Dweck, the US psychologist. Its opposite is a ?fixed mindset? ? the idea that you already have all
you need.
When hiring and developing people,
companies should look at how it will
help them grow. Attitudes to talent can,
however, lead employers in the wrong
direction.
Part of the problem is language and
how ?talent? is too often an exaggerated
synonym for ?people?. Another problem is not knowing or understanding
the people you already have.
Just 4 per cent of FTSE 100 groups
state in their annual reports how many
workers are full or part-time, according
to a recent study by Lancaster University Management School.
The report also says that only 64 per
cent of companies detail the composition of their workforce, usually in terms
of diversity. The companies do not say,
or maybe do not know, how much work
people are doing for them.
Today?s workforce contains a variety
of people contributing in many ways,
says Mara Swan, an executive vice-president at Manpower Group (see page 1).
?It?s not just about FTEs (full-time
equivalents) any more,? she says.
?There are contingent workers, contractors, part-timers, vendors . . . companies sometimes don?t even know who is
working for them. One client thought
they had 20,000 independent contractors . . . In fact it was more like 40,000.?
Having identified talent, it is important that it remains relevant.
Improving technological skills is a
constant priority. Online services are
transforming most businesses but not
everyone has to be a coder, and some
jobs will be affected more than others.
?Expertise has a short shelf-life,? says
David D?Souza, head of engagement at
the UK?s Chartered Institute of Personnel and Development.
?Every profession faces its own challenge. You need flexibility and openness
to learning. You will need different skills
in two years, when you will not be doing
the same job.?
This is why a positive attitude to gaining skills, which Manpower calls ?learnability?, is valued by good employers.
?You can learn knowledge but you
can?t learn attitude,? says Kate GriffithsLambeth, director of human resources
for financial services firm Charles
Stanley.
She recently hired a former bartender
to join her team as an HR business partner. ?She is pragmatic, down-to-earth,?
says Ms Griffiths-Lambeth. ?She was
?If people really
were your biggest
asset you?d treat
them differently,
not see them as
disposable?
not polished but she is a star and has
made a fundamental difference. We
have been a traditional business and we
needed to broaden our pool of people.?
Neil Morrison, until recently HR
director of the publisher Penguin Random House, took an equally radical
approach. ?It?s about sending a message
that ?our doors are open to you?,? he says
of the decision to drop the company
requirement for new employees to be
graduates. By the time Mr Morrison left
(he is now with Severn Trent Water), a
quarter of hires did not have a degree
and were making a dynamic contribution. Being open-minded about talent is
not easy. ?We can be lazy about our
approach,? Mr Morrison says, ?expecting to find polished potential . . . you
need to do some hard work.?
Concentrating on the search for miracle-workers can distract managers from
assessing the collective capability of
the business, which is often more
important.
?You need to take a more rounded
view,? says Ms Swan. ?What are the
complementary skillsets you need? The
smart view is to think about the team.?
?All of us can learn,? says Amy
Edmondson, a Harvard Business School
professor and winner of the Thinkers 50
award as the world?s leading commentator on talent.
?The point is to be part of a collective
capability: curious about what others
know and humble about what I know.
?Teaming?, as I call it, is the ability to
approach people with different skills,
from a different background, and get up
to speed fast.?
Mr D?Souza says: ?If people really
were your biggest asset you?d treat
them differently. You would look after
them, you would look for a maximum
return on investment, not see them as
disposable.?
Talent may not stay for ever. At Penguin Random House, Mr Morrison
would talk about people doing ?the best
work of their lives? with the company ?
even if they later chose to move elsewhere.
Mr D?Souza says some employers still
struggle to find and recognise talent and
manage it well.
?We?re good at measuring tangibles,
less good at the intangibles,? he says.
?But if you hire a manager who gets
everyone else to be 1 per cent better,
helps people have better meetings or
make better decisions, that would be a
big deal. We can undervalue unseen
contributions. People are not just the
sum of a few data points.?
Work is a collective exercise and success requires a combination of all the
talents. It takes an open mind and a
generous spirit to find and develop the
people you need.
Justine Roberts
Founder and CEO, Mumsnet
Sarah Murray
Head of content, FT Investing for Good
Stefan Stern
Author and visiting professor at Cass
Business School
Murad Ahmed
Leisure correspondent
Leyla Boulton and Ruth Lewis-Coste
Commissioning editors
Steven Bird
Designer
Alan Knox
Picture Editor
For advertising details, contact:
Carol Ramsey, + 44 20 7873 4024 and
carol.ramsey@ft.com, or your usual FT
representative.
All FT Reports are available on FT.com at
ft.com/reports
Follow us on Twitter: @ftreports
All editorial content in this report is
produced by the FT. Our advertisers have
no influence over or prior sight of the
articles.
?
Thursday 14 December 2017
3
FINANCIAL TIMES
The Race for Talent
Sport The number of athletes who change
nationality to compete in the Olympics and other
top contests is under increasing scrutiny.
By Murad Ahmed
In search of
?aliens of
extraordinary
abilities?
R
uth Jebet raised her arms in
triumph at the finish line of
the women?s 3000m steeplechase at the 2016 Olympics
in Rio de Janeiro. Other runners were barely rounding the final
bend. She had won the first gold of the
Games for Bahrain.
The performance pushed the Gulf
kingdom higher in the medal table than
far larger countries such as India, Mexico and Vietnam.
The gold may have counted for Bahrain but Jebet, now 21, was born in
Kenya, the country that dominates middle-distance racing. At age 16, she
switched nationality to the Middle Eastern state, which helped fund her schooling and training.
Jebet?s story is similar to the trade for
talent across industries and professions.
Other organisations also search the
globe for people with extraordinary
ability.
The athlete?s win, though, led to controversy and the rules may be about to
change. Jebet said financial considerations led to her move. ?There was no
support in Kenya,? she told a Canadian
news agency in August 2016. ?We talked
with the [Bahrain] federation and they
said ?you can come and we will pay for
everything?.?
Bahrain is not alone in its strategy. In
Rio, 30 Kenyan runners were said to
have competed for nations not of their
birth. Of Qatar?s 39 athletes, 23 were
born abroad, many persuaded to move
for pay and benefits. In 2000, according
to reports, Qatar acquired eight Bulgarian weightlifters in return for citizenship and payments worth $1m.
Great Britain, too, enlists athletes
born overseas. In the 2012 London
Games its 542-strong team included 60
?plastic Brits?, as one UK newspaper
called them. The US, the dominant
nation in Olympic competition, offers a
special visa to attract world-class athletes, describing them as ?aliens of
extraordinary abilities?.
Sports? governing bodies are left with
the task of policing this trade in international talent. Wealthy countries with
little sporting heritage appear willing to
acquire glory by naturalising athletes
from poorer nations.
Some officials, particularly in Africa
and countries in the developing world,
complain that these transfers are little
more than human trafficking and put
national sporting programmes at risk.
As a result, the International Association of Athletics Federations (IAAF),
the world governing body of track and
?There are so many issues
that have popped up.
Immigration is changing?
field, froze ?transfers of allegiance? and
set up a group to examine the problem.
Explaining the decision, IAAF president Sebastian Coe says: ?In the lead-up
to the Rio games . . . where we were discussing transfers and what was on the
books, I asked the question, is this normal? I think we had around 180 in the
lead-up to Rio. On one particular day, we
had 20 or so.?
He says he has increasingly seen
?teams winning things with few and on
occasion no national athletes in the
team?. Given ?strong, competing and
dissenting arguments on both sides?, he
said it was time to debate the issue.
Lord Coe understands those who
argue that in an interconnected world,
barriers should not stop people plying
their trade where it suits them. He also
sympathises with national sporting
bodies whose funding is dependent on
international success: this money is in
jeopardy if they nurture athletes only to
Triumph: steeplechaser Ruth Jebet
won gold at the Rio Olympics
see a rich country reap the benefits. The
same argument acts as an incentive for
wealthy countries, especially those with
a small population or little sporting tradition to carry on poaching talent.
?It doesn?t surprise me that a country
wants to improve its global profile by
going north up the medals table ? then
they could be tempted to find the best
athletes they possibly can,? says Lord
Coe.
The IAAF has yet to propose how it
will tackle the conundrum but Lord Coe
says he is minded to tighten the rules on
allegiance.
?My instinct is . . . for there to be
credibility. That there is a proposition
that unless under exceptional circumstances, an athlete who starts in a vest of
a country probably retires in the same
vest.?
The solution may lie in finding rules
that balance the needs of athletes and
nations.
Yet other sporting bodies may be
heading in the opposite direction.
In October, Fifa, football?s world governing body, said it was considering
changes to let players switch national
teams so long as they had played only
once or twice for a nation. At present,
footballers cannot change team after
just one competitive international
match.
The proposal was put forward by
Cape Verde, the archipelago nation off
the west coast of Africa. In football, talented Africans leave for European clubs
early, which often leads to them representing the national team where the
club is based. African nations hope to
reclaim their 閙igr閟.
Fifa has several options, including a
compensation scheme for situations in
which a player benefits from training in
one nation before switching to a wealthier country.
Hinting at a nuanced approach, the
IAAF is weighing various options for
athletics, such as capping the number of
transfers allowed, enforcing a waiting
period before a nationality change is
accepted or setting a minimum age
before which an athlete cannot switch
allegiance. The International Olympic
Committee, the Games? organiser, is
said to be watching these developments.
Fifa is still exploring ?the details and
feasibility of potential amendments to
the eligibility rules? and is not expected
to issue recommendations until next
year. Victor Montagliani, the Fifa vicepresident heading the committee looking at changes, suggests the task is complicated by a fast-changing environment: ?There are so many issues that
have popped up. The world is changing.
Immigration is changing.?
Athletes such as Jebet may continue
to achieve sporting glory. What is likely
to change is which countries bask in
their achievements.
Some countries make extensive use of eligibility transfers
Jamaican-born Andrew Fisher
(below) competes for Bahrain
at the Rio 2016 Olympic Games
Photo: Johannes Eisele/AFP/Getty Images
Number of athlete transfers
US
2000
Source: IAAF
Bahrain
15
Qatar
15
GB
15
15
10
10
10
10
5
5
5
5
2017
0
2000
2017
0
2000
2017
0
0
2000
2017
4
FINANCIAL TIMES
Thursday 14 December 2017
t intraday record
highs for a second successive session.
The latest peaks came as participants
managed to put aside initial concerns
about the implications of the result of
the Alabama Senate election.
By midday in New York, the S&P was
up 0.3 per cent at 2,671, the Dow was 0.5
per cent higher and the tech-heavy Nasdaq Composite had notched up a 0.4 per
cent gain.
?The victory of Democrat Doug Jones
for a US Senate seat in Alabama is a
major setback for President Trump?s
legislative agenda beyond the tax bill,?
said Philip Marey, senior US strategist at
Rabobank.
?Starting in January, the Republican
majority in the Senate will be reduced to
51-49. This will increase the pressure on
the Republicans to pass a tax bill before
the end of the year.?
cutting the Republican?s Senate
majority to 51 seats to the 49 for the
Democrats, as efforts to pass sweeping
tax reform proposals enter the final
stages.
But investors brushed off the result,
arguing that it should prove a catalyst to
pass tax reform before the year is out
and Mr Jones takes his seat.
?If anything it rushes the tax reform
through this year before the seat
officially changes hands,? said Peter
Tchir, chief macro strategist at Academy
Securities. ?It creates more impetus to
get things done quickly.?
Tax reform is seen as a boon for stock
markets, lowering the statutory tax rate
and allowing companies to repatriate
division with Npower, fell 0.8 per cent to
�.13.
Water utilities followed the trend,
with Severn Trent off 1.6 per cent to
�.86, after regulator Ofwat published
a methodology on permitted returns
ahead of a 2019 price review.
Ofwat set out a potential 2.4 per cent
cost of capital, which though lower than
consensus estimates of 2.6 per cent, was
based on higher inflation assumptions.
National Grid lost 1.1 per cent to
874.4p. Goldman Sachs highlighted that
Ofwat?s guidance was sharply below
National Grid?s permitted return of 4.33
per cent.
?While the return released today does
not directly feed into National Grid
reviews, it does serve as a direction of
travel for National Grid?s UK regulated
businesses,? said Goldman. Similar
terms ?would represent 25 per cent EPS
risk over the coming years?, it said.
The FTSE 100 ended 3.9 points lower
at 7,496.51. Leading the fallers, Ashtead
slipped from a record high, losing 5.4
per cent to �.49, after chief executive
Geoff Drabble raised more than �m
with a share sale at �.54 apiece.
Aviva fell 2.1 per cent to 501.5p after
Merrill Lynch downgraded to ?neutral?
with a 550p price target. It cited ?sparse
near-term catalysts? and tepid earnings
growth awaiting capital management
measures to take effect in 2019.
Sports Direct faded 1.4 per cent to
383.4p on a downgrade to
?underperform? from Jefferies.
The ?sketchy? evidence Sports Direct
has put forward so far on its flagship
store refit programme has
demonstrated very little improvement
in sales densities, which is at odds with
expectations that the retailer can
rebuild UK margins and take market
share, said Jefferies.
?Bottom line, institutional investors
need to question their involvement as
the strong rebound in the stock provides
a long-absent exit opportunity,?
Jefferies continued.
Dixons bounced 8.5 per cent to 181.6p
after its interim results, showing a 60
per cent earnings drop, proved no worse
than expected.
?Risks remain due to the high-ticket,
discretionary product pitch and
operational gearing, and the group
needs to improve cash flow,? said
Numis.
?However, in our view the valuation
at seven times calendar 2018 earnings
more than discounts this, at least for
more adventurous funds.?
2600
2400
Jan
2200
Dec
2017
Source: Thomson Reuters Datastream
Day's
Indices
S & P 500
Close
change
2671.40
7.29
DJ Industrials
24661.09
156.29
Nasdaq Comp
6892.82
30.50
Russell 2000
1204.70
-8.35
VIX
9.85
-0.07
US 10 yr Treas Bd
2.39
-0.02
US 2 yr Treas Bd
1.83
0.01
Joe Rennison and
Adam Samson
London
Centrica and SSE lose
spark after warning
from owner of Npower
Bryce Elder
Utilities held back the London market
as a profit warning from Innogy revived
competition concerns.
Germany?s Innogy said that Npower,
its lossmaking UK arm, has been
fighting back against market entrants
by shifting customers to cheaper tariffs.
In response, British Gas owner
Centrica was down 3.7 per cent to 139.5p
and SSE, which is merging its household
In Europe, the Stoxx 600 index
slipped 0.2 per cent and the Xetra Dax in
Frankfurt ended 0.4 per cent lower.
In Milan, the FTSE MIB index shed 1.4
per cent while the yield on Italy?s benchmark 10-year government bond, which
moves in the opposite direction to its
price, jumped 8 basis points to 1.78 per
cent.
Those moves followed reports in the
Italian press that general elections were
likely to be held on March 4 next year,
and that the country?s president could
dissolve parliament straight after
Christmas.
?At this stage, it is extremely difficult
to imagine the way forward for Italian
politics should elections deliver post-
overseas cash more cheaply. Volatility
has remained muted this year and by
some measures has dipped to its lowest
level on record.
The average difference between the
intraday high and low for US stocks hit a
new low this year, according to research
from Howard Silverblatt, a senior
analyst at S&P Dow Jones Indices.
The high-low spread sank to 0.1457
per cent on November 24 (the day after
Thanksgiving) ? the lowest for any day
since Mr Silverblatt?s records begin in
1962.
It is in line with the Cboe Vix volatility
index, a measure of implied volatility in
the US stock market and Wall Street?s
main volatility barometer, which
despite inching higher to 9.96 yesterday
remains well below its long-term
average of about 20.
Another way of looking at the same
theme is provided by Bank of America
Merrill Lynch?s equities derivatives
research team, who warned this month
of a ?bubble in apathy?.
The analysts note that in January
2017, the Dow Jones Industrial Average
traded in its tightest range since 1900.
Meanwhile, the S&P 500 index has been
bouncing back from declines at a
record-breaking pace.
But investors are also mindful that
volatility could pick up again in the new
year, assuming the support provided by
impending tax reform has passed and
money managers come back to markets
with fresh cash to put to work.
2800
The US stock market sustained its
upward march yesterday, as investors
played down fears that the Republicans?
loss of a Senate seat in Alabama might
reduce the chance of passing key
legislative proposals, including tax
reform.
The S&P 500 rose 0.2 per cent to
2,668 in morning trading in New York,
led by a 0.6 per cent gain for industrial
stocks and a 0.5 per cent rise for the
healthcare sector. The Dow Jones
Industrial Average moved 0.6 per cent
higher to 24,643 and the tech-heavy
Nasdaq Composite gained 0.3 per cent
to 6,879.
Roy Moore lost to Democrat Doug
Jones in Alabama on Tuesday night,
Getty
UK inflation of 3.1% breaches BoE target: FT.com/video
The Bank of England has missed its inflation target after prices
rose at the fastest rate for more than five years in November
election instability as we currently
expect,? said Fabio Fois, economist at
Barclays.
?Our baseline is for the formation of a
very wide and heterogeneous grand coalition. In addition, today?s news reports
reinforce the possibility that President
Mattarella may play an active role,
potentially to the point of naming a temporary prime minister to take charge of
governing the country for a short period
of time while either a coalition government is formed or new elections are
held.?
Meanwhile, longer-term US Treasuries rose as core US inflation data for
November came in on the soft side.
Headline consumer prices rose by a rel-
atively robust 0.4 per cent last month ?
although this was largely due to a 7.3 per
cent jump in gasoline prices.
The ?core? CPI, which excludes volatile food and energy prices, rose by a far
more modest 0.1 per cent in November,
which pulled the annual rate of increase
down to 1.7 per cent from 1.8 per cent in
October.
?Inflation is still below the Fed?s comfort range, but we anticipate a rebound
next year, which will require the Fed to
hike rates by 100bp in 2018,? said Paul
Ashworth at Capital Economics.
Harm Bandholz, chief US economist
at UniCredit, said the core CPI reading
had damped down expectations in some
quarters for the US central bank to
deliver a more hawkish commentary
with its rate decision.
?After all, why should the Fed change
a reasonable monetary policy outlook
when there is still some uncertainty
about when inflation will hit the 2 per
cent target,? he said.
Indeed, the yield on the 10-year
Treasury was down 2bp at 2.39 per cent
while that on the 30-year bond was 3bp
lower at 2.75 per cent.
The dollar, meanwhile, was down 0.3
per cent against a weighted basket of
rivals after hitting a one-month high on
Tuesday. The US currency was off 0.3
per cent against the yen at �3.21 while
the euro was up 0.2 per cent at $1.1759.
Oil prices remained volatile after
making strong gains earlier in the week
following the closure of a major North
Sea pipeline system.
US crude stockpiles fell by 5.1m barrels last week, according to the EIA,
while gasoline inventories increased by
5.7m barrels.
Brent oil was down 1.2 per cent at
$62.57 a barrel after earlier reaching
$64.32. It hit a two-year intraday high of
$65.83 on Tuesday.
Gold was up $2 at $1.245 an ounce as it
continued to bounce off yesterday?s low
of $1,235.
0.15%
2700
2650
2600
Nov
S&P 500 index
Wall Street
Investors see Republican
loss as catalyst to
pushing tax reform
9.6pt regular Change on day
for 1,2,3
2017
Dec
2550
US equities Industrial stocks were the
best performers in early Wall Street
trading as the S&P 500 and the Dow
Jones Industrial Average once again
hit record intraday highs
FTSE 100 index
Change on day
Nov
0.05%
2017
7500
7450
7400
7350
7300
Dec
UK equities Expectations for higher
US interest rates helped push the
financial sector higher, partially
offsetting weakness for housebuilders
and consumer stocks
Eurofirst 300 index
Change on day
Nov
0.30%
2017
Dec
1540
1530
1520
1510
1500
European equities The Italian market
lagged its main rivals in the region as
political uncertainty left the country?s
banking sector nursing its biggest
single-session fall since May
Nikkei 225 index
(?000) Change on day
0.47%
23.0
22.5
22.0
Nov
2017
Dec
Japanese equities Technology stocks
were a big drag on the Nikkei as they
took their cue from overnight losses
for their US counterparts
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20
Thursday 14 December 2017
Analysis. Currencies
SMART MONEY
Prospect of euro-sterling parity is receding
John
Authers
Passive phenomenon
sparks stewardship
and governance fears
C
an we entrust the governance of companies to a
small group of passive investors? The question
grows more urgent as the scale of passive
investment has grown and as the industry has
grown more concentrated.
There are many reasons to be nervous about the passive
phenomenon but stewardship and corporate governance
arguably top the list. Two issues predominate. First, will
passive investors be active when it comes to asserting their
rights as owners and act as good stewards for the companies they hold? Many argue that as they have no choice but
to hold the companies in the index and have a competitive
need to reduce costs, they will prove poor stewards.
A second issue is cross-ownership. Many new players are
entering the quasi-passive world of exchange traded funds
based on factor indices. But most passive investing is carried out by a dominant ?big three? of State Street, BlackRock and Vanguard. That means that these three companies will become common owners of many companies that
would normally compete directly against each other.
The point on stewardship may not be as serious as it
looks. But common ownership deserves careful scrutiny.
On the issue of stewardship, Morningstar released an
exhaustive analysis of how big passive firms (on both sides
of the Atlantic) vote their shares ? and it turns out the
more pressing issue is for active funds to behave more
actively. According to Hortense Bioy, who wrote the
report, it found that active managers backed management
as often as passive managers
did, thus arguably eschewing
The ?big three?
a chance to improve their performance.
become common
She said: ?There?s absoowners of
lutely no evidence that passive management has any companies that
impact on stewardship. And
compete directly
the fact that these groups also
manage active funds helps.?
The extra weight from their passive holdings gives companies like BlackRock an incentive to devote resources to
stewardship. Their active managers will have the weight of
the entire BlackRock passive holding in a company behind
them when they try to shake up a company management.
The main passive houses have all increased the staffing
of their stewardship departments, showing that they are
prepared to incur some costs. BlackRock and Vanguard
now have 33 and 21 staff devoted to stewardship, up from
20 and 10 three years ago. Passive groups have also
increased their number of ?engagements? with companies
while they are no more likely to vote with management
than active funds.
That said, they remain likely to vote ?yes?. In the last
year, the proportion of votes that passive managers cast
against managements varied from 22 per cent at Nomura
and 23 per cent at Deutsche to only 6 per cent at Vanguard.
The big passive outfits have made some big splashes
with their engagements. Perhaps the most important scalp
came this week when ExxonMobil agreed to publish more
about its possible impact on the climate, under shareholder pressure. State Street also garnered much publicity
from its ?fearless girl? statue in Wall Street, which publicised its attempt to put more women on boards. But Morningstar found that, away from the big splashes there is a
lack of disclosure as to exactly what they are doing when
engaging with companies they own. The issue is important
and they must publish more.
Meanwhile, cross-ownership may be a more difficult
issue to deal with. Pictet Asset Management, a large active
asset manager, this week published a report showing that
cross-ownership of the biggest US companies has grown
across all sectors in the last 10 years. This is largely because
of the big three passive investors, who appear at the top of
virtually every share register. Tech, healthcare, financials
and industrials show the highest concentration. Does this
matter? Supriya Menon, Pictet?s senior macro strategist,
argues that it does. Studies of airlines and banking have
shown that ticket prices tend to rise, and deposit rates to
fall, once there are high levels of cross-ownership. Such
behaviour is logically in the interests of the joint owners.
It is questionable whether Vanguard or State Street
assert themselves so actively as to push companies in this
direction ? but this is an issue that the passive industry,
and particularly the big three, will have to address.
john.authers@ft.com
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Investors sense the pound will
gain further ground but few
expect major rally next year
Euro
Against sterling (� per ?)
0.95
0.90
ROGER BLITZ
When a euro was worth as much as 93p
during the summer, two things dawned
on investors: the euro-sterling exchange
rate was heading for parity and the currency pair was the best proxy for evaluating Brexit.
In which case, the market view now is
that Brexit risk for the UK is abating.
Since that nadir for the pound following
a 10 per cent fall over the summer, the
UK currency has since clawed back 6
per cent against the single currency.
The idea of parity now seems farfetched, with the euro?s value having
dropped back to 88p. And while that
still represents an 11 per cent decline in
euro-sterling from the levels before the
2016 referendum, the investor mood is
cautiously optimistic about sterling.
Sterling is ?one of the most mispriced
G10 currencies, and sentiment is still
way too bearish on the UK (economy)?,
says Stephen Jen of Eurizon SLJ Capital.
?In fact, I would not be surprised if, a
year from now, the pound turns out to
be the best-performing currency [based
on risk-return ratios] in the world.?
Is such confidence justified? While
much depends on Brexit negotiations,
there is an argument that investors are
turning their attention elsewhere. With
the European Central Bank and the
Bank of England both meeting today, it
is tempting to take a breather from the
Brexit cut and thrust and focus on economic fundamentals.
Investors will need to put this theory
to the test the next time a significant
piece of Brexit news arises. Euro-sterling trading is likely to experience ?long
periods of boredom punctuated by
moments of sheer terror?, says Jeremy
Cook, economist at World First.
Others sense a shift. Marianna Georgakopoulou, multi-asset strategist at
0.85
Dec
2016
Annual % change
3.0
Eurozone
UK
The cost of gas for the UK?s
energy needs eased 5p to 68p
a therm, though it remains
up 17 per cent since the
beginning of the month. The
price for delivery in January
dipped nearly 5p to 60.85p.
Fears of a supply crunch
have risen during the cold
snap gripping the country,
prompted by the closure of a
North Sea oil and gas pipeline that is expected to cut as
much as 40 per cent of daily
supply into the new year.
A surge in gas prices on
Tuesday also reflected an
explosion at Austria?s Baumgarten gas import hub, the
main conduit for Russian
supplies into Europe. The
operator Gas Connect Austria said that the main arteries supplying neighbouring
countries came back online
late on Tuesday.
Same-day UK gas prices
rose almost 50 per cent to a
high of 99p a therm on Tuesday ? the highest since 2013.
The shutdown of the Forties Pipeline System caused
the closure of the British
North Sea Elgin-Franklin
and Britannia gasfields.
Yesterday, the UK?s gas
system was undersupplied
by 27.8m cubic metres as
demand fell short of flows,
National Grid data showed,
but the UK government
stressed that the country had
adequate import capacity.
The pipeline outage has
also reduced supplies of
Forecast
2.5
2.0
1.5
2015
16
17
18
1.0
Sources: Thomson Reuters Datastream;
European Commission Autumn Forecast
Mario Draghi,
president of the
European
Central Bank.
Investors are on
the lookout for
signs that the
ECB will tighten
monetary policy
Alex Kraus/Bloomberg
UK natural gas prices
stay near 4-year peak
UK natural gas prices stayed
near their highest level in
four years yesterday, reflecting supply disruptions in the
North Sea, but the reopening
of a European hub for Russian imports helped to ease
concernsovershortages.
0.80
Dec
Real GDP growth
Commodities
ANJLI RAVAL
OIL & GAS CORRESPONDENT
2017
North Sea crude oil by
450,000 b/d, boosting oil
prices to the highest in more
than two years.
Brent crude, the international oil benchmark underpinned by supplies from the
North Sea, jumped to almost
$66 a barrel on Tuesday.
Prices have since eased to
$63.76 a barrel.
Alongside short-term supply and demand dynamics,
oil market watchers are also
looking ahead to 2018.
Opec revised higher its
output growth figures from
producers outside of the cartel for this year and next, saying production ? particularly from US shale fields ?
presented ?considerable
uncertainties?.
?US, Canada and Kazakhstan have been the key
contributors to the upward
revisions,? said Opec. ?The
momentum seen this year is
expected to continue in 2018
on the back of increased
investment in US tight oil
and improved well efficiency.?
The performance of US
shale oil producers is in focus
as industry watchers judge
the effectiveness of supply
cuts led by Opec and countries such as Russia, which
have been extended for the
duration of 2018.
Ahead of a meeting of oil
ministers in November, Russia pushed for guidance on
when the supply curbs would
end, as domestic oil companies expressed concern about
US producers taking advantageofapricerebound.
Saudi Arabia has said it is
?premature? to discuss an
exit strategy as global inventories remain above their
five-year average, meaning
producers had more work to
do to ease bloated stockpiles.
Ashburton Investments, thinks that
over time sterling and the euro will
become ?desensitised? to Brexit.
There is enough Brexit risk premium
baked into sterling, she says. ?It is very
possible that we will see at certain times
Brexit drivers taking a back seat and
fundamentals driving the currency,?
adds Ms Georgakopoulou.
Among those drivers will be the UK
and eurozone growth performances and
inflation, she says, and in both instances
they point to sterling gaining further
ground on the euro. Lofty expectations
for eurozone growth may be hard to
meet, while UK inflation may be starting to normalise, despite last month?s
tick-up in CPI to 3.1 per cent.
Much depends on monetary policy.
Investors are on the lookout for signs of
the ECB speeding up the pace at which it
puts its loose policy strategy into
reverse. For the Bank of England, the
focus remains one of gauging what the
progress of Brexit talks and a likely transition deal means for the UK economy.
Jefferies economists expect Mario
Draghi, the ECB president, to reveal ?as
little as possible? this week. Any sign of
Brexit talks progressing ?should provide
the BoE with more confidence to continue normalising policy and encourage
a stronger pound?, says MUFG currency
analyst Lee Hardman.
But politics will never be very far from
investors? thoughts. Marine Le Pen?s
defeat in the French presidential election was a significant contributor to the
euro?s 2017 rally, but investors risk
ignoring electoral trends on the continent, according to Bank of Montreal?s
Stephen Gallo. ?You have a swing to the
right,? he says. ?You have a very fractured situation politically and that came
out in the German election result.?
The Italian election, expected in
March, and the outcome of German coalition talks will be ?a big deal?, he says.
Mr Gallo is one of a clutch of analysts
expecting a modest appreciation in sterling?s value against the euro. ING thinks
the 85p level could be tested in the first
quarter should the Italian election put
the euro under pressure and a transition
deal generate a positive reassessment of
the UK economic outlook.
?With a range of indicators suggesting
that the UK economy is at a standstill, a
reduction in medium-term uncertainty
may rekindle some of the ?animal spirits? among consumers and firms ? and
see more cash put back to work over the
coming year,? says ING?s Viraj Patel.
All that may yet be swallowed up by a
distinctive ECB shift towards monetary
tightening. The consensus forecast is for
the currency pair to stay broadly on an
even keel through 2018, according to
Reuters. It may not amount to much,
but after 18 months of Brexit-induced
volatility, that may represent something
of a win for the pound.
FT SPECIAL REPORT
The Race for Talent
www.ft.com/reports | @ftreports
Thursday December 14 2017
When specialists earn ?scary salaries?
Tech groups must
capture the most-skilled
experts or risk falling
behind, reports
Helen Barrett
S
imon Raymer has a problem.
The chief information officer
of Fraedom, a global
company specialising in
payments and expenses
systems, is perpetually hunting for
technology talent.
To innovate and grow, the company
must hire experts. It needs workers who
understand technology ? developers,
systems architects and people with coding skills ? with a record of solving
problems.
Yet many other companies all over
the world are looking for the same
expertise.
?The scarcity is global,? says Mr
Raymer. ?As soon as you start talking
tech, especially fintech talent with good
experience, it is very rare.? The Londonbased company employs 200 developers. Such is the scale of the competition
that at any one time it is trying to fill
between 50 and 100 vacancies.
Conventional recruitment methods
do not cut it in this market. ?You can?t
just put out an advert and expect people
to come clamouring for the job,? says Mr
Raymer. ?We have three dedicated
recruiters working full-time, scanning
LinkedIn and going out and spreading
the word.?
While it has a San Francisco office,
Fraedom is not a large, cash-rich Silicon
Valley company. Neither is it a lean,
scrappy start-up, offering the stirring
possibility that it may change the world
and make employees with stock options
very rich. It is a mid-sized, privately
owned company founded in 1999, and it
must find a way to persuade the best
technology talent to choose to work
there. If it does not, it risks falling
behind.
As some of the world?s biggest companies bet on technologies like self-driving
cars, artificial intelligence and virtual
reality, demand for tech talent is escalating ? and so are the salaries and
perks commanded by those who can
build and run those technologies.
How likely a company is to attract
that talent depends on where in the
world it is. In Japan, with its relatively
restrictive immigration laws, more than
86 per cent of businesses struggle to
recruit talent, according to data from
ManpowerGroup, the US recruiter. This
Constant struggle: Simon Raymer of Fraedom says he needs to fill 50 to 100 vacancies at any one time ? Jessie Casson for the FT
Career choice It?s not just money: skills, flexibility and brand matter, too
A recent survey by ManpowerGroup found that while
59 per cent of job candidates around the world identified
compensation as a primary concern shaping their career
decisions, work type (53 per cent), flexibility (38 per cent)
and company brand (20 per cent) are increasingly important.
?People now prioritise learning and new skills,? explains
Becky Frankiewicz, the recruitment company?s North America
president. As technological innovation forces many
employees to develop skills to stay at the cutting edge of
their sector, Ms Frankiewicz says: ?In the future, the haves
The world?s leading
tech employers
By number of employees (?000)
0 200 400 600 800
Hon Hai/Foxconn
IBM
Accenture
Amazon
Samsung
Hitachi
Panasonic
Flex
Canon
Pegatron
Hewlett Packard
Huawei
Onex
Source: Fortune Global 500
and the have-nots will be divided up by who has the skills.?
In the UK, Australia and parts of Scandinavia, type of work
has eclipsed pay as the most important consideration.
In another survey conducted by the company, four out of
five millennials said they would change jobs for a role with
the same pay that offered better training opportunities.
Meanwhile, 87 per cent of respondents said they would
consider gig economy roles such as contract, temporary and
freelance positions for their next job.
David Robinson
compares with a global average of a little
less than 50 per cent.
The global data cover all roles, but the
technology industry was cited as the
second most-difficult to recruit for. The
US and Europe fare somewhat better on
the tech front.
Technology is a well-paid sector and
salaries vary depending on specialisms.
At Fraedom, says Mr Raymer, joiners
earn ?market salaries? of between
�,000 and �0,000 a year, with
PhDs and other specialists commanding
?scary salaries?. For Harvard Business
School MBA graduates who work in
technology, median salaries have risen
from an annual $115,000 to $130,000 in
just five years. At the other end of the
scale, start-ups with limited funds for
high salaries must find creative ways to
lure talent.
A nimble, creative company with
a sense of mission and disruption
is a big draw for workers, but only up to
a point.
Many expect rewards for risk in the
form of stock options ? where the
worker forgoes a high salary in lieu of a
stake in the company.
In the US, employee stock options
have helped attract the world?s best talent to early stage ventures, but in
Europe and Asia, such perks are less
common.
Research by Index Ventures, the techfocused venture capital firm, suggests
that employees in Silicon Valley receive
double the reward for risk of their
European counterparts, where such
benefits are often reserved for the
most senior executives. It says on average, employees own 20 per cent
of late-stage start-ups in the US, versus
10 per cent in Europe.
The authors say this uneven state of
affairs holds back the European technology sector as it tries to compete
for workers. Index produced a league
table of European countries that
showed how, in terms of broad equity
ownership by employees, the UK has
created the most favourable conditions,
with Germany?s and Spain?s the least
favourable.
Europe?s founding investors are less
keen to accept a diluted return than
their US counterparts, says Dominic
Jacquesson, director of talent at Index.
Diluted return ?is short-term pain but
you could have a share of a bigger pie in
the long run,? he says.
Mr Jacquesson says even a relatively
straightforward ecommerce venture
needs a complicated and expensive set
of skills, including some roles that he
describes as ?semi-tech?.
?As you scale up, you need a worldclass team around you. Hyper-growth is
a skillset in itself. How do you build
brands in the superfast timescales of
technology?? In Silicon Valley, he says,
?even the office manager will negotiate a
salary with stock options?.
One tech company that offers reward
for risk to all staff is Farfetch, the
London-based fashion retail platform,
through a scheme called Farfetch for
All, started this year. The company has
2,000 employees in 11 offices around
the world, with employees from 57
nationalities.
Sian Keane, executive vice-president
of people, says that, in the context of
hyper-growth ? Farfetch grew more
than 70 per cent over the 12 months
to the end of 2016, based on the
value of goods traded ? the scheme
fosters cohesion. ?We are trying to create a sense of community across different markets ? London is no more of a
headquarters than Portugal,? she says.
Meanwhile, Fraedom?s hunt continues. The company may be neither a
start-up nor a member of the Fang
group (Facebook, Amazon, Netflix and
Google), but it does have some oldfashioned advantages.
?If you work for a start-up, you are
never sure your pay cheque is going to
arrive,? says Mr Raymer. ?And
if you work for a big company, there
is surface glamour and perks, but
it is hard work.? So the company positions itself as a friendly employer with a
limited hierarchical structure, where
tech teams are given autonomy to solve
problems. It also helps that the company has been around for 20 years. As
Mr Raymer points out: ?Young people in
their late 20s and early 30s often want a
house, a family ? and a bit of stability.?
Inside
Message that chills
expatriates
Skilled immigrants shun
the UK and US in
anticipation of new
immigration laws
Page 2
It takes all sorts to
make a better company
Justine Roberts, founder
of Mumsnet, on diversity
in the workplace
Page 2
Look for talent within
your team first
The importance of new
skills and why
?learnability? is key
Page 2
In search of ?aliens of
extraordinary abilities?
The number of men and
women who change
nationality for top
sporting contests
comes under
scrutiny
Page 3
A joint special report
Japan Classroom experimentation points the way forward for the next generation of workers amid a scarcity of recruits
International school gives
children a global upbringing
Education
Social skills, languages and
appreciating others? views
are key to future success,
says Nikkei?s Shotaro Tani
The pupils were chatting away but neither of the two teachers had to raise
their voice. Anyone who has had to sit
through the tedium of classes in Japan,
where normally you can hear a pin drop,
would have felt green with envy.
?That doesn?t look right. How about
changing this word?? one pupil says to a
classmate in English. ?Why don?t we
make the photos bigger for the presentation?? says another in Japanese.
The nine to 11-year-olds were collaborating while switching between English
and Japanese ? an everyday scene at the
New International School of Japan in
Tokyo. ?If you visit any other international school, some have signs saying
?Speak English?,? says Steven Parr, the
headmaster. ?Language-use rules are
very common. Usually they say ?speak
Japanese only in the Japanese class and
speak English everywhere else?.?
Instead, his school, where 70 per cent
of students are from mixed nationality
or foreign families, encourages translanguaging: using more than one language at the same time. ?Language is a
tool for expression,? says Mr Parr. ?The
kids can think, speak and do research in
any language.? Sending children to
international schools is popular with
Japanese parents who can afford to give
their offspring an edge associated with
knowing English.
Japan has a low level of English proficiency and is ranked 59th of 63 countries for language skills by IMD, the
Swiss business school. The number of
students at English-language international schools reached 12,452 this year,
up 27 per cent from five years ago.
Yet as more parents realise that just
speaking English is not enough in
an increasingly globalised world, so
the appeal grows of a comprehensive,
multi-cultural approach to education
such as that offered by New International, which charges four times as
much as Japanese private schools. Says
Akihiro Nojiri, a senior manager at a
consultancy, whose six-year old son is at
New International: ?We came to think
that truly international talent must be
proficient in their mother tongue and in
English, as well as having a deep understanding of multiple cultures.?
The school, founded in 2001 by Mr
Parr, who was keen to try new teaching
methods after working at another international school in Japan, takes students
from kindergarten to the end of secondary school. It receives applications for
its summer-school from China, Singapore and the US. New International is
also in line with the Japanese government?s policy goal of nurturing ?global
talent? as the country comes to grips
with the limitations of an ageing,
shrinking population and the need to
look overseas for future growth.
Ironically, by sending children to
schools like New International, parents
technically break Japan?s education law,
which obliges parents to send their offspring to regular ?Article 1? Japanese
schools. Japanese parents with children
in international schools are often called
by education boards, which ask why
their child is not at a Japanese school.
One such couple are Mizuki Hirai and
his wife Ayumi, whose children aged 10
and seven are at New International.
Ms Hirai says: ?It?s not that I am
against sending kids to Article 1 schools.
Even if some people think I am not providing my children with compulsory
education, I?m confident that it?s a quality education.? Her husband agrees.
?Our eldest had a South Korean friend
who could speak Japanese, English,
Korean and Chinese,? he says. ?We had
hoped he would develop his English
but he was so inspired by his friend
that he learnt Korean. It?s not what
we had in mind, but it is international
nonetheless.?
New International is keen to emphasise that English is not the be-all and
end-all of developing global talent.
?Language skills could be important,
two or more languages is obviously
great,? says Mr Parr. ?I also think social
skills, being able to see things from a different point of view [is important].? He
Bosses face life-anddeath struggle
Demographics
Failure to hire new blood
dooms companies to decline.
Robin Harding reports
Collaboration: pupils translanguaging
says the school?s multi-age learning
environment helps hone these skills.
Classes include pupils from three grades
with the older ones helping the younger
ones. Once they move up a year, they
return to the bottom rung. The aim is to
prepare pupils for careers in which they
may have to assume different roles at
different times.
The school also eschews Japan?s much
criticised rote-learning in favour of an
interdisciplinary approach. Pupils are
given a theme at the start of a 12-week
term in which they learn various disciplines. If the theme is, say, water, they
learn maths by measuring rainfall,
alongside Chinese characters related to
water. ?Japanese schools tend to make
you remember one definitive answer
and that doesn?t happen at this school,?
said Minako Yamamoto, 16, who spent
three years at a regular primary school
before joining New International.
?When you are told to memorise an
answer before knowing the joys of learning, that makes you hate studying.?
Every year, Mitsuhiro Wada has to
recruit up to 900 new graduates in a
country with an ultra-low unemployment rate of 2.8 per cent and a declining
pool of young people at university.
?The market is very tough. There?s a
huge amount of competition,? says Mr
Wada, head of recruitment at Daiwa
House, one of Japan?s biggest construction companies and a leading hirer of
graduates. ?It?s even tougher than it was
in 2007 or 2008.?
After five years of economic stimulus
under prime minister Shinzo Abe, and
with the working age population in
steep demographic decline, Japan?s big
companies are engaged in a ferocious
contest for talent.
Given that lifetime employment is
still the norm for many graduates, failure to hire new blood can doom even
established corporations to long-term
decline, as they will struggle to bring in
good staff who are at later stages of their
career.
?The construction industry is cyclical
and there were periods when recruitment was limited,? says Mr Wada.
?As a result, we have relatively
few staff in their 30s and we want to
maintain balance.? The outlook for
Japan?s construction sector has
improved since Tokyo won its bid to
host the Olympic Games in 2020. Daiwa
House is targeting rapid growth in sales
and has recruitment targets to match.
?We intend to be a winner and see the
opportunity to expand market share,?
Mr Wada says.
Hiring in Japan is still dominated by
the annual graduation season, with
companies following a set of voluntary
rules that govern when they can interview and make offers. Once a graduate
joins, they will enjoy steady progression
and annual pay increments until they
reach a fixed retirement age ? normally
60, although this is rising.
While the country?s broader labour
market is booming, with the overall
jobs-to-applicants ratio at its highest
level since the mid-1970s, the ratio for
graduates is still below its 2007-08 peak
and well below the levels of the 1980s
bubble economy.
That is partly because companies
have grown more disciplined about hiring through the economic cycle, says
Akihito Toda, chief analyst at the
Recruit Works Institute, a research
group. ?Recently the pattern has been
not to boost hiring so much because the
economy has got better,? he says.
That, though, hides a gulf between
prestige recruiters such as government,
automakers and the big banks on one
hand versus less popular sectors such as
Continued on page 2
?
2
FINANCIAL TIMES
Thursday 14 December 2017
The Race for Talent
Diversity ? nobody does it perfectly and help is at hand
OPINION
Justine Roberts
Diversity makes your business stronger
? of that there is no doubt.
This is partly about talent. If
recruitment processes are damaged by
unconscious bias and systematic
failures, or if we repeatedly hire the
people who remind us of ourselves, we
end up fishing in a shallow candidate
pool.
For any business with customers or
end users, however, diversity is also
about understanding and reaching the
broadest possible market.
A diverse workforce helps to divert
management from cognitive grooves
and enables it to identify opportunities
others will miss.
If major film studios, for instance,
had a greater proportion of older
women executives, they might not
have repeatedly turned down the idea
for the acclaimed The Best Exotic
Marigold Hotel. When I had the idea for
Mumsnet almost two decades ago and
was trying to raise investment funding,
one fund manager airily told me he
would put money in only if I took a
step back.
He wanted someone else to run the
business ? a man, naturally, because
that was his idea of what a chief
executive should be, even of an
organisation designed to appeal to
women.
Be in no doubt that discriminatory
hiring is a problem: a 2009 study by
the National Centre for Social
Research, an independent social
research institute headed by the UK
government?s Department for Work
and Pensions, found that candidates
with ?white sounding? names got
positive responses to one in every nine
(randomised) CVs sent out, while
candidates with names that indicated a
Bame (black, Asian and minority
ethnic) background got one positive
response for every 16.
The Spectator magazine is notable
among those trying to address the
problem. It has dispensed with CVs ? a
policy its editor Fraser Nelson
describes as not ?anti-posh?, but ?pro-
talent?. The flurry of positive coverage
about The Spectator?s move was a
bonus. Younger people in particular are
paying attention. While they are ready
to punish perceived failures (with
reputational fallout), they are also
ready to reward those who are trying to
get better.
So if all this has you cowering under
your desk, there are two bits of good
news. The first is that lots of businesses
are beating a path for others to follow.
You can have brilliant policies
but if senior managers are
not seen to use them,
they will be less valuable
The second is that no company or
sector does this perfectly: nearly every
organisation struggles to be
representative. Admitting that you
need to improve draws a positive
response. There are some outstanding
examples of forward-thinking practice,
not just in tech but in traditional
sectors. One example is Timpsons, a
UK shoe repair chain ?which hires?
former offenders. After a year, more
than 90 per cent are still working there.
Senior management buy-in is crucial,
with more big companies creating
?head of diversity? posts. Perhaps
unsurprisingly for an industry that
hopes to be invited into the homes of
the British public on a regular basis,
national television channels have been
working on this for some time.
After a spate of stories about the BBC
being ?hideously white?, Tunde
Ogungbesan was hired as head of
diversity, inclusion and succession in
2015, with a �1m fund to improve
Bame representation.
One lesson from Mumsnet?s Family
Friendly programme, which
encourages businesses to adopt flexible
and effective working practices, is that
culture is key. You can have brilliant
policies but if staff do not see senior
managers putting them into practice,
they will be less valuable.
We see many examples of employees
having flexible working requests
denied because line managers cannot
face working through the challenges
involved, in spite of pitch-perfect
policy documents. The same stasis can
undermine the best recruitment plans.
Training and reinforcement are
necessary until the practice becomes
second nature. Openreach, a division of
BT, the UK telecoms group, retrained
its managers to help them consider
more carefully the core competencies
required for 1,500 customer-service
engineer jobs on offer. To support
candidates from different
backgrounds, they had four mantras:
?We don?t recruit in our own image?,
?We can train people to do the
technical stuff?, ?Relationships are
much more important? and ?We look
for aptitude not experience?.
It is not all about internal processes:
you also need to ensure talented
candidates see your job ad. One
advantage of jobs boards is that many
specialise in under-represented
candidates. When the people you are
targeting click through to your site, it is
important they see some evidence that
diversity is a genuine goal rather than a
box you tick as part of your
recruitment process.
The writer is founder and CEO of Mumsnet
Not welcome:
the message
that chills
expatriates
Mobility Skilled immigrants shun the UK and US
in anticipation of new laws, says Sarah Murray
A
s competition for global talent intensifies, some countries are scoring own goals.
These include the US,
where the Trump administration wants to make drastic cuts to
immigration, and the UK, which last
year voted to leave the EU, with immigration being a key concern for those
opting for Brexit.
While most rules have yet to be
altered, the expectation of change in the
UK is influencing what skilled workers
decide to do. Nearly half of highly
skilled EU workers are thinking of leaving Britain in the next five years, says
Deloitte, the professional services
group.
For some UK industries, the implications are particularly serious.
The Nursing & Midwifery Council
says the number of nurses and midwives from Europe leaving its register
rose 67 per cent in the 12 months to
November. The number joining the register from the EU fell 89 per cent.
Academia is also being affected by the
prospect of losing EU research funding.
?In our business, the biggest impact has
been on the higher education sector,?
says Albert Ellis, chief executive of Harvey Nash, the London-based executive
search group.
The situation in the US is similar. In
California, a court ruled that only parts
of President Donald Trump?s travel ban,
which will bar people who come from
six Muslim-majority countries, could be
enacted.
The message is clear, even without
substantial changes in the law.
The anti-immigration sentiment that
was partly responsible for Brexit and
the election of Mr Trump has created an
environment in which many overseas
professionals no longer feel welcome.
?Perception is everything,? says Mr
Ellis. ?Candidates are now more concerned about relocating their families
and they?re very concerned about lack
of tolerance in the US and the UK.?
Jonas Prising, ManpowerGroup chief
executive and chairman, agrees. ?The
rhetoric appears to have a detrimental
effect,? he says ?It has an immediate
chilling impact on individuals who have
skills that they can deploy somewhere
else, where they feel welcome.?
Even uncertainty about the future of
immigration is enough to deter professionals who may otherwise have considered relocating to the US or UK.
?When most people think of career
plans, they think medium to longterm,? says Hakan Enver, London operations director of financial services at
Expectation of
change: many
skilled workers
are concerned
about lack of
tolerance in the
US and UK
Boston Globe via
Getty Images
Morgan McKinley, the recruitment
group. ?People are being put off by what
could happen in the future.?
Beyond legislative changes, other government measures suggest an environment that is less open to overseas professionals. In the US, for example, the
administration has said it will increase
its scrutiny of skilled-worker visa applications and US immigration and customs is considering a big increase to
staffing. ?That additional hiring signals
that employers in the US may face a
greater likelihood of being investigated,? says Betsy Morgan, head of the
global immigration and mobility practice at law firm Baker McKenzie.
While the US restricts its borders,
other countries are opening theirs
wider. Last month Canada said it would
increase efforts to encourage immigration. ?We are emphatically and
unapologetically taking the opposite
approach,? said Ahmed Hussen, the
country?s immigration minister, on
announcing the plan.
The strategy, which Mr Hussen said
would result in ?the most ambitious
immigration levels in recent Canadian
history?, includes increasing targets for
economic migrants to foster innovation,
fill skills gaps and offset the effects of an
ageing population.
?The
message
has been
sent and
interpreted,
and the
effects are
immediate?
Others are using tax incentives to
attract global talent. In November last
year, for instance, Ireland extended till
2020 its special assignee relief programme, which provides tax relief for
certain people assigned to work in Ireland from abroad.
Meanwhile, in the UK, European
migrants think about going home. For
some, the incentive is stronger now,
because their country?s prospects are
better than when they left.
?In Poland, there are skill shortages,
salaries have gone up, the economy is
doing well,? says Mr Prising.
Governments will have to strike a difficult balance. While they want to
respond to voters who favour limits on
immigration, they must ensure that
their countries continues to attract people with skills. ?In developing immigration laws, lawmakers walk a tightrope,?
says Ms Morgan.
Given that rapidly ageing populations
will exacerbate skill shortages, this tension is likely to increase. Efforts to promote openness and build a globally
diverse workforce can become lost amid
signals suggesting that talent from overseas is no longer welcome.
?The message has been sent and
interpreted ? and the effects are immediate,? says Mr Prising.
Challenges: Mitsuhiro Wada
Bosses face
life-anddeath
struggle
Continued from page 1
retail, social care and construction on
the other.
?Those that can hire easily don?t see
recruitment as a big issue. On the other
hand, companies that are already struggling aren?t thinking ahead, they?re trying to compete right now,? says Mr Toda.
Smaller companies face a particular
struggle. ?According to our survey this
year, more than 50 per cent of small and
medium-sized companies couldn?t
recruit the number of graduates they
wanted,? says Tomonori Sugisaki at the
Japan Chamber of Commerce.
Companies are responding in a variety of ways but not, in general, by raising pay. Since Japanese graduates
expect a job for life, the starting salary is
not very salient; they choose based on
the perceived stability, reputation and
comfort of an employer.
At Daiwa House, Mr Wada is trying to
support a greater diversity of working
styles, including making life easier for
working mothers. It is also dropping a
traditional Japanese requirement: that
the employee move to wherever the
employer assigns them. ?We?ve started
a system where you can designate a
region in which you want to work,? he
says. ?We?re trying to provide a custommade way of working for new staff.?
One thing Japanese companies have
not yet done, apart from a very few
globalised manufacturers, is look
abroad. Even though Daiwa House?s
overseas business is growing fast, ?at
present, we still just think in terms of
recruitment in Japan,? says Mr Wada.
Another question that is receiving
some attention is what to do with the top
tier of talent. Traditionally, Japanese
companies like to take their time
and move each cohort through a succession of jobs, steadily winnowing the
numbers as they move up the corporate pyramid.
But even the most popular companies
are finding that twentysomethings are
unwilling to grind their way upwards
and are instead quitting to join a
start-up or a charity. ?Some companies
are now considering whether they need
to adopt a fast track,? says Mr Toda.
The outlook for recruitment only
becomes harder. From next year, the
number of students entering Japanese
universities will start to fall steadily, as
the last demographic echoes of the baby
boomers fade away. From 2022, those
smaller classes will start to graduate.
Contributors
Helen Barrett
Work and Careers editor
Robin Harding
Tokyo bureau chief
Shotaro Tani
Nikkei journalist
In need of talent? Look closer to home first
Hiring and development
Stefan Stern sets out
the ingredients of
a ?growth mindset?
If managers want their business to be
stronger and more competitive they
need a ?growth mindset?. This is the
term coined by Carol Dweck, the US psychologist. Its opposite is a ?fixed mindset? ? the idea that you already have all
you need.
When hiring and developing people,
companies should look at how it will
help them grow. Attitudes to talent can,
however, lead employers in the wrong
direction.
Part of the problem is language and
how ?talent? is too often an exaggerated
synonym for ?people?. Another problem is not knowing or understanding
the people you already have.
Just 4 per cent of FTSE 100 groups
state in their annual reports how many
workers are full or part-time, according
to a recent study by Lancaster University Management School.
The report also says that only 64 per
cent of companies detail the composition of their workforce, usually in terms
of diversity. The companies do not say,
or maybe do not know, how much work
people are doing for them.
Today?s workforce contains a variety
of people contributing in many ways,
says Mara Swan, an executive vice-president at Manpower Group (see page 1).
?It?s not just about FTEs (full-time
equivalents) any more,? she says.
?There are contingent workers, contractors, part-timers, vendors . . . companies sometimes don?t even know who is
working for them. One client thought
they had 20,000 independent contractors . . . In fact it was more like 40,000.?
Having identified talent, it is important that it remains relevant.
Improving technological skills is a
constant priority. Online services are
transforming most businesses but not
everyone has to be a coder, and some
jobs will be affected more than others.
?Expertise has a short shelf-life,? says
David D?Souza, head of engagement at
the UK?s Chartered Institute of Personnel and Development.
?Every profession faces its own challenge. You need flexibility and openness
to learning. You will need different skills
in two years, when you will not be doing
the same job.?
This is why a positive attitude to gaining skills, which Manpower calls ?learnability?, is valued by good employers.
?You can learn knowledge but you
can?t learn attitude,? says Kate GriffithsLambeth, director of human resources
for financial services firm Charles
Stanley.
She recently hired a former bartender
to join her team as an HR business partner. ?She is pragmatic, down-to-earth,?
says Ms Griffiths-Lambeth. ?She was
?If people really
were your biggest
asset you?d treat
them differently,
not see them as
disposable?
not polished but she is a star and has
made a fundamental difference. We
have been a traditional business and we
needed to broaden our pool of people.?
Neil Morrison, until recently HR
director of the publisher Penguin Random House, took an equally radical
approach. ?It?s about sending a message
that ?our doors are open to you?,? he says
of the decision to drop the company
requirement for new employees to be
graduates. By the time Mr Morrison left
(he is now with Severn Trent Water), a
quarter of hires did not have a degree
and were making a dynamic contribution. Being open-minded about talent is
not easy. ?We can be lazy about our
approach,? Mr Morrison says, ?expecting to find polished potential . . . you
need to do some hard work.?
Concentrating on the search for miracle-workers can distract managers from
assessing the collective capability of
the business, which is often more
important.
?You need to take a more rounded
view,? says Ms Swan. ?What are the
complementary skillsets you need? The
smart view is to think about the team.?
?All of us can learn,? says Amy
Edmondson, a Harvard Business School
professor and winner of the Thinkers 50
award as the world?s leading commentator on talent.
?The point is to be part of a collective
capability: curious about what others
know and humble about what I know.
?Teaming?, as I call it, is the ability to
approach people with different skills,
from a different background, and get up
to speed fast.?
Mr D?Souza says: ?If people really
were your biggest asset you?d treat
them differently. You would look after
them, you would look for a maximum
return on investment, not see them as
disposable.?
Talent may not stay for ever. At Penguin Random House, Mr Morrison
would talk about people doing ?the best
work of their lives? with the company ?
even if they later chose to move elsewhere.
Mr D?Souza says some employers still
struggle to find and recognise talent and
manage it well.
?We?re good at measuring tangibles,
less good at the intangibles,? he says.
?But if you hire a manager who gets
everyone else to be 1 per cent better,
helps people have better meetings or
make better decisions, that would be a
big deal. We can undervalue unseen
contributions. People are not just the
sum of a few data points.?
Work is a collective exercise and success requires a combination of all the
talents. It takes an open mind and a
generous spirit to find and develop the
people you need.
Justine Roberts
Founder and CEO, Mumsnet
Sarah Murray
Head of content, FT Investing for Good
Stefan Stern
Author and visiting professor at Cass
Business School
Murad Ahmed
Leisure correspondent
Leyla Boulton and Ruth Lewis-Coste
Commissioning editors
Steven Bird
Designer
Alan Knox
Picture Editor
For advertising details, contact:
Carol Ramsey, + 44 20 7873 4024 and
carol.ramsey@ft.com, or your usual FT
representative.
All FT Reports are available on FT.com at
ft.com/reports
Follow us on Twitter: @ftreports
All editorial content in this report is
produced by the FT. Our advertisers have
no influence over or prior sight of the
articles.
?
Thursday 14 December 2017
3
FINANCIAL TIMES
The Race for Talent
Sport The number of athletes who change
nationality to compete in the Olympics and other
top contests is under increasing scrutiny.
By Murad Ahmed
In search of
?aliens of
extraordinary
abilities?
R
uth Jebet raised her arms in
triumph at the finish line of
the women?s 3000m steeplechase at the 2016 Olympics
in Rio de Janeiro. Other runners were barely rounding the final
bend. She had won the first gold of the
Games for Bahrain.
The performance pushed the Gulf
kingdom higher in the medal table than
far larger countries such as India, Mexico and Vietnam.
The gold may have counted for Bahrain but Jebet, now 21, was born in
Kenya, the country that dominates middle-distance racing. At age 16, she
switched nationality to the Middle Eastern state, which helped fund her schooling and training.
Jebet?s story is similar to the trade for
talent across industries and professions.
Other organisations also search the
globe for people with extraordinary
ability.
The athlete?s win, though, led to controversy and the rules may be about to
change. Jebet said financial considerations led to her move. ?There was no
support in Kenya,? she told a Canadian
news agency in August 2016. ?We talked
with the [Bahrain] federation and they
said ?you can come and we will pay for
everything?.?
Bahrain is not alone in its strategy. In
Rio, 30 Kenyan runners were said to
have competed for nations not of their
birth. Of Qatar?s 39 athletes, 23 were
born abroad, many persuaded to move
for pay and benefits. In 2000, according
to reports, Qatar acquired eight Bulgarian weightlifters in return for citizenship and payments worth $1m.
Great Britain, too, enlists athletes
born overseas. In the 2012 London
Games its 542-strong team included 60
?plastic Brits?, as one UK newspaper
called them. The US, the dominant
nation in Olympic competition, offers a
special visa to attract world-class athletes, describing them as ?aliens of
extraordinary abilities?.
Sports? governing bodies are left with
the task of policing this trade in international talent. Wealthy countries with
little sporting heritage appear willing to
acquire glory by naturalising athletes
from poorer nations.
Some officials, particularly in Africa
and countries in the developing world,
complain that these transfers are little
more than human trafficking and put
national sporting programmes at risk.
As a result, the International Association of Athletics Federations (IAAF),
the world governing body of track and
?There are so many issues
that have popped up.
Immigration is changing?
field, froze ?transfers of allegiance? and
set up a group to examine the problem.
Explaining the decision, IAAF president Sebastian Coe says: ?In the lead-up
to the Rio games . . . where we were discussing transfers and what was on the
books, I asked the question, is this normal? I think we had around 180 in the
lead-up to Rio. On one particular day, we
had 20 or so.?
He says he has increasingly seen
?teams winning things with few and on
occasion no national athletes in the
team?. Given ?strong, competing and
dissenting arguments on both sides?, he
said it was time to debate the issue.
Lord Coe understands those who
argue that in an interconnected world,
barriers should not stop people plying
their trade where it suits them. He also
sympathises with national sporting
bodies whose funding is dependent on
international success: this money is in
jeopardy if they nurture athletes only to
Triumph: steeplechaser Ruth Jebet
won gold at the Rio Olympics
see a rich country reap the benefits. The
same argument acts as an incentive for
wealthy countries, especially
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