MONDAY 28 AUGUST 2017 WORLD BUSINESS NEWSPAPER USA $2.50 Canada C$3.

00

Kagames gamble Wild wild web Made in England

Rwandas president reinvents a Big Tech no longer has the right to The unexpected benefits of
still-divided nation BIG READ, PAGE 6 police itself RANA FOROOHAR, PAGE 9 reshoring JONATHAN MARGOLIS, PAGE 12

Catastrophic Briefing
floods swamp i Opposition U-turn raises heat on May
Theresa Mays Brexit strategy is facing pressure
Houston from the UK prime ministers own party after the
Labour opposition announced it would campaign to
keep Britain in the EU single market, at least during
Torrential rain dumped by tropical a transitional period. PAGE 3
storm Harvey turned streets into rivers
in Houston yesterday, leaving a mount- i US envoy warns on Ukraine crisis
ing death toll. US-Russian relations will be crippled unless a
Parts of Texas had already recorded solution is found to the Ukraine crisis, the US envoy
more than 27 inches of rainfall by 9am for Ukraine talks has said. PAGE 4
local time. The US National Hurricane
Center called the flooding catastrophic i China rights lawyer in jailing appeal
and life-threatening and forecast that Liu Yao, a leading Chinese rights lawyer, will lodge
the heavy rain would continue for days. an appeal within two weeks against a 20-year
Authorities do not yet know the full sentence for alleged crimes including extortion and
scale of damage because the bad fraud, according to one of his lawyers. PAGE 2
weather has prevented emergency
crews reaching hardest-hit areas. Presi- i Modi under pressure after mob violence
dent Donald Trump in tweets yesterday Narendra Modi and his
hailed the co-ordination between gov- Bharatiya Janata party have
ernment agencies. We have an all out been criticised by one of Indias
effort going, and going well, he said. highest courts after mob
Report page 3 violence erupted in the north of
Mark Mulligan/Houston Chronicle/AP
the country, leaving 36 people
dead. PAGE 4

Trump faces increasing cabinet

i Washington holds key to gold price
With gold touching $1,300 this month for the first
time since Donald Trumps election, investors say
Washington will be vital to whether it can extend
the 12 per cent rally it staged this year. PAGE 13

dissent over stance on racial issues i Big banks at odds over Noble CDS
The plight of Noble Group is pitching some of the
biggest investment banks against each other in a
tussle over credit default swaps. PAGE 13

i The university of hard liquor

3 Tillerson distances himself from president 3 Cohn says administration must do better
DEMETRI SEVASTOPULO WASHINGTON
Donald Trump is facing a growing cho-
rus of rebukes from his cabinet and
leading Congressional Republicans over
his response to white supremacist pro-
tests in Charlottesville and his pardon of
former Arizona sheriff Joe Arpaio.
Rex Tillerson, US secretary of state,
yesterday became the second top
Trump administration official to dis-
tance himself from the US presidents
comments about Charlottesville vio-
lence two weeks ago.
Responding to a UN statement that
there had been failure at the highest
political level to condemn the racism
witnessed in Virginia more than two
weeks ago, Mr Tillerson told Fox News
the state department always expressed
Kweichow Moutai, the China spirits manufacturer,
is to open a Moutai university, as a lack of skilled
workers prompts companies to launch training
American values. Asked whether that white supremacists. While Mr Cohn did Rex people on suspicion of being illegal schools for young employees. PAGE 2
applied to Mr Trumps values, he said: not mention the president by name, Mr immigrants. The court decision resulted
The president speaks for himself. Trump was the sole focus of criticism Tillerson from an older lawsuit, in which the 85-
Pressed on whether he was after the president declared there had told Fox year-old was accused of using racial pro- Datawatch
distancing himself from his boss, Mr been fine people among the suprema- filing to target Hispanics.
Tillerson said he made his own com- cist groups in Charlottesville. News the The pardon drew condemnation from
ments about values in a recent speech Since Charlottesville, Mr Trump has state senior Republicans, including Paul Births from foreign mothers
The concept of
in which he said the US should protect toggled between offering statements Ryan, House speaker. His spokesman national identity is
Per cent 2007 2015
freedom of speech but condemn racism, about abhorring racism and accusing department said: Law enforcement officials have a
0 10 20 30
changing as the
number of
while adding that those who embrace the fake news media of mischaracter- always special responsibility to respect the
Netherlands multinational
hate speech damage the very country ising his words. rights of everyone in the United States. France
they claim to love. But his language has sparked one of expressed We should not allow anyone to believe Spain
children rises. In
the EU, the share
Mr Tillersons comments came two the most damaging controversies of his American that responsibility is diminished by this UK of births from a
days after Gary Cohn, the White House young presidency, prompting several pardon. Germany foreign mother is
national economic council director, Republicans to distance themselves values John McCain, the Arizona Republican Sweden more than one in
indirectly rebuked the president in an from their president. senator, said the pardon undermined Belgium four across six EU
interview with the Financial Times, in Mr Trump fanned the flames again on the presidents claim for the respect of Austria nations including
which he said the Trump administra- Friday when he pardoned Joe Arpaio, rule of law as Mr Arpaio has shown no Source: Eurostat Austria, Germany
tion must do better in condemning the former Arizona sheriff convicted of remorse for his actions. and the UK
neo-Nazis, the Ku Klux Klan and other ignoring a court order to stop detaining Editorial Comment page 7

Wall Streets top bankers sell their own

Pets are cats whiskers
in developing nations
Pet ownership has risen fast in
developing countries, reflecting a
growing middle class with changing
lifestyles and attitudes. Since 2003, the
number of pet dogs has risen 51 per
cent to 243m, compared with just 5 per
cent to 137m in the developed world,
according to researcher Euromonitor.
Cat ownership in emerging markets
has risen 49 per cent to 126m, far
outstripping the 5 per cent rise to
155m in wealthy countries.
Report i PAGE 4
groups shares as Trump rally reverses
BEN MCLANNAHAN NEW YORK
Wall Street analysts have been urging
investors all year to buy stocks in the
big US banks. But Wall Street itself is
not listening.
Executives and board members at the
top six US banks have been consistent
sellers of their own banks shares this
year, according to a Financial Times
analysis of disclosures tracked by
Bloomberg.
Insiders at the big six banks by assets
JPMorgan Chase, Bank of America,
Wells Fargo, Citigroup, Goldman Sachs
and Morgan Stanley have in total sold
a net 9.32m shares on the open market
in 2017. Even excluding Warren Buffetts
share sale in Wells in April, to avoid trip-
ping over rules capping ownership by a
non-bank, sales by insiders outnumber
purchases by about 14 to one.
That is an unusually long streak of net
sales, across each of the big six. Last
year, for example, insiders at JPMorgan,
Citigroup and Bank of America bought
more shares than they sold.
Observers say the sales may be driven
by disenchantment with Donald
Trump, the US president, who rode to
power partly on a promise of higher
interest rates, lower taxes and lighter
regulation. That rhetoric helped propel
bank stocks sharply higher in the weeks
after the election last November.
But a series of policy setbacks have
cast doubt on those objectives, bringing
bank stocks back down. On Friday, the
KBW Banks index a grouping of two
dozen Wall Street and regional banks
was just 3 per cent higher so far this year.
Bank stocks have become a barome-
ter for the Trump administrations pol-
icies, said Robert Smalley, UBS analyst.
Buying and selling of shares by bank
insiders can have a powerful signalling
effect. Last year Jamie Dimon, chairman
and chief executive of JPMorgan,
seemed to call an end to a mini-rout in
bank stocks when he bought half a mil-
lion shares in his own bank.
But senior insiders have made no
demonstrations of faith this year, sug-
gesting they fear that the big gains under
Mr Trump have come to an end. Gold-
man and Morgan Stanley insiders have
not bought on the open market this
year, according to Bloomberg.
David Hendler, founder of Viola Risk
Advisors, said share sales by executives
at retail banks could be smart as con-
sumer portfolios show signs of strain,
such as credit card delinquencies rising.
Theres not a lot of get-up-and-go in
earnings so why not take some chips
off the table? he said.

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2 FINANCIAL TIMES Monday 28 August 2017

INTERNATIONAL
GLOBAL INSIGHT
Dissident
EUROPE

Jailed China lawyer to launch appeal Tony

Barber
Supporters ready to protest In August last year Zhou Shifeng, who Ms Pils said: The authorities wanted The appeals that cut the term to 16 months.
headed a Beijing law firm targeted in a to put Liu Yao in a position where they Mr Pu, however, has since been
against one of harshest authorities
sentences of crackdown
crackdown on human rights lawyers,
received a seven-year sentence for
alleged subversion.
could simply interrogate him. Accord-
ing to Ms Pils, the 2009 meeting was
routine and arranged after she and Mr
wanted to
convicted as part of the crackdown
against rights lawyers. The cowed legal
community has been quiet about Lius
Schulz taps pacifist
put Liu
TOM MITCHELL BEIJING The chance of Liu Yao winning his
appeal will be very low, said Li Fang-
Cohen had read news reports of Lius
advocacy. She said Lius 20-year sen- Yao in a current case.
As a result, Lius new sentence,
tradition by playing
position
Liu Yao, a Chinese rights lawyer, will
lodge an appeal within two weeks
against a 20-year prison sentence for
ping, who attributed the severity of his
clients sentence to his persistence in
accusing officials of corruption in his
tence was quite awful.
Liu, who specialised in land-grab
cases, pitting farmers against officials
where they
imposed in April, has attracted little
media attention.
Lius wife, Lai Weie, who organised
the Trump card
alleged crimes including extortion and home town of Heyuan, Guangdong. and developers, came to prominence could simply his defence in 2008, and his son, Zhaox-
fraud, according to his supporters. The original charges against Liu, 55, when he was detained in 2007. The fol- interrogate ing, have also been caught up in the case
him

I
Lius sentence is one of the harshest included endangering state security, lowing year he was jailed for against him. t seemed last week as if the spirit of Gerhard Schrder
handed out in a crackdown on civil soci- which allowed officials to hold him four years with prosecutors alleging Liu and Ms Lai were convicted of had returned to haunt Germanys election campaign.
ety that in the past five years has incommunicado for nine months. The that building materials worth child-trafficking related to their adop- In attacking President Donald Trump and vowing to
silenced dozens of legal, labour and charge was subsequently dropped. Rmb50,000 had been damaged in a con- tion of a boy. Ms Lai was held for a year secure the removal of US nuclear weapons from Ger-
ethnic activists. The accusation appears to have been frontation between Lius farmer clients but has since been reunited with her man soil, Martin Schulz, the Social Democrat candi-
Three years ago Ilham Tohti, an advo- based on a meeting in 2009 between Liu and guards at a hydropower station. adopted son. date for chancellor, was borrowing a leaf from the anti-
cate for the Uighurs, an ethnic group and Jerome Cohen of New York Such a sentence for a relatively minor Zhaoxing, 34, is serving four years for American book which contributed to Mr Schrders nar-
based in Chinas North West, was jailed University and Eva Pils of Kings incident led to an outcry in Chinas legal allegedly helping his father post materi- row victory for the SPD in the 2002 election.
for life for allegedly advocating inde- College London, both experts on Chinas community. Prominent lawyers such as als online. Fifteen years ago, Mr Schrder broke new ground for
pendence for the Xinjiang region. legal system. Mr Li and Pu Zhiqiang led a series of Additional reporting by Xinning Liu post-1945 German democracy with a campaign that
sought votes by criticising US foreign policy. At one elec-
tion rally after another, the SPD chancellor insisted that
Germany would have nothing to do with the George W
Bush administrations plans to invade Iraq.
Germany. Election campaign Arguably, history vindicated Mr Schrder on Iraq. But
some Germans worried in 2002 that his campaign risked

Merkel softly-softly tactic subdues rivals stoking broader anti-American feelings in a country reli-
ant on the US security umbrella. In any event, US-German
relations recovered and even flourished during the part-
nership of Barack Obama and Angela Merkel, Mr
Schrders successor.
Mr Schulzs dmarche on nuclear weapons appealed to
Polls signal fourth term for pacifist impulses similar to those tapped by Mr Schrder.
chancellor as SPDs Schulz But it drew scathing criticism from some quarters. That
would probably mean the end of Nato and the end of the
struggles to make big impact EU, tweeted Ulrich Speck, a Washington-based specialist
on transatlantic relations.
It was almost inevitable that Mr Schulz would play the
STEFAN WAGSTYL MNSTER
Trump card before election day on September 24. The
Before Angela Merkel took to the stage Republican president is phenomenally unpopular in Ger-
in the wealthy city of Mnster, the many. In an Infratest
cheerleaders were struggling to get a dimap survey published
decidedly middle-aged crowd to wave in June, 92 per cent of
Germans
their arms in a show of appreciation. Germans expressed dis- are growing
They need not have worried. Once the approval of Mr Trump
German chancellor stood before the and a mere 5 per cent
accustomed to the
microphones, there was no disguising approved of him. international role
the audiences enthusiasm. They According to that poll,
clapped and cheered while Ms Merkel 21 per cent of Germans
thrust upon them
spoke for 40 minutes and gave her a said the US was a trust-
rousing farewell as she left for her next worthy partner, and 74 per cent regarded the US as
campaign event. untrustworthy. These were the same levels of trust and
Tim Rohleder, who appears to be one mistrust recorded for German attitudes towards Russia.
of only two anti-Merkel protesters in a Mr Schulz knows full well that Ms Merkel has no choice but
5,000-strong crowd in the square by to deal with the elected leader of Germanys most impor-
Mnsters medieval cathedral, admitted tant ally. But he hopes to exploit voters aversion to Mr
it had been hard persuading people to Trump as a way to close the yawning gap in opinion polls
join his two-man demo. The govern- between Ms Merkels Christian Democrats and the SPD.
ment serves big business, he said. But Mr Schulzs gambit is even wider in scope. The SPD is
there is little protest because Germans campaigning on a pledge not to raise defence spending to 2
are satisfied. Things are going well with per cent of gross domestic product, the target to which all
Merkel and they want this to continue. Nato states committed themselves in 2014. By contrast,
As Ms Merkel runs for a fourth term Ms Merkel, aware that Mr Trump is hardly the first US
in the election on September 24, opin- president to criticise under-spending European members
ion polls show her conservative Chris- Crowd favourite: surrounding rich farmland, is prime year from three dramatic political SPD is on 24 per cent in the polls, far off of Nato, says Germany must honour its promises.
tian Democrat-led bloc is far ahead of its Angela Merkel CDU territory. But with 50,000 students changes. First, Donald Trumps election the CDU and its Bavarian sister party Part of the electorate is undoubtedly susceptible to Mr
rivals, including the Social Democrats gives a speech at its universities, there might have as US president reminded Germans of Christian Social Union on 38 per cent Schulzs message. Surveys reveal lukewarm support for
headed by Martin Schulz. What she this month in been scope for recruiting more than two the worlds uncertainties. It has helped Oskar Niedermayer, a politics profes- higher military expenditure and for German participation
warned only six months ago would be front of the protesters. The Greens and the Left rally support behind a 63-year-old sor at Berlins Free University, says there in combat missions abroad. In a Pew Research Center poll
the hardest election campaign I have cathedral in parties of choice for young radicals chancellor with 12 years in power as a is still time for election-shaking events. released in May, Germans were the nation least supportive
ever fought is looking comfortable, Mnster are both strong locally. predictable counterweight. The diesel scandal, in which Ms Mer- of using armed force to defend a Nato ally, if it found itself
assuming the polls are correct. Guido Kirchner/DPA
However, in Mnster as elsewhere, Next, the 2015-16 refugee crisis, kels government has been accused of in a serious military conflict with Russia.
Moreover, although Ms Merkel pre- the chancellor has succeeded in disarm- which rocked her chancellorship when giving the automakers too much On the other hand, Germans are slowly growing accus-
dicted as recently as a month ago that ing opponents with a softly-softly cam- more than 1m asylum seekers arrived in licence, could yet spring a surprise, he tomed to the larger international role which has been
she could not win by simply standing on paign style that avoids provoking rivals. Germany, has receded, at least in this says. So could a sudden surge in refu- thrust upon Ms Merkels governments since she took office
her long record, that is largely what she Lutz Meyer, who advised the CDU in part of Europe. Voters are broadly satis- gees. Or a big terrorist attack. But Mr in 2005. Over the past decade Germany has taken the lead-
is doing. The new ideas she promised 2013, says: This campaign is typical fied that Mr Merkel did the right thing, Niedermayer says it is hard to see how ing role in organising a financial rescue for Greece, striking
are few and vague, such as a pledge of Merkel. Focus on personality and play both in welcoming refugees and then in the SPD could profit, as it is in coalition a deal with Turkey to control refugee flows into Europe
full employment by 2025. down any themes. trying to cut the inflows. A 65-year-old with Ms Merkel and so shares responsi- and negotiating with Russia over the Ukraine conflict.
When Merkel announced in Decem- The CDU highlighted the chancellors retired nurse at the Mnster rally said: bility for government policies. Nor is Ms Merkel afraid to break with Mr Trump if she
ber 2016 that she was going to run again, personal role this week with a set of Of course, I am against everybody com- The refugee crisis may have faded but feels it necessary. She did this at last months G20 meeting
we expected a rather different cam- posters, exclusively focused on Ms Mer- ing here, but where people need help, as its unsettling political effects remain. in Hamburg over climate change. Where she draws the
paign more emotion, arguments, con- kel. Clever, calm and decisive, says with Syria, we must help. Germany is a The rightwing nationalist Alternative line is in declining to speak about German leadership on
stant quarrels, says Jens Spahn, a mem- one. So that our country stays on the rich country and we can afford it. for Germany has lost the support it had global issues. Some foreign policy experts in Berlin think it
ber of the CDUs ruling council who road to success. The main difference to Finally, Mr Schulz, who had looked at the height of the crisis but remains an is high time for a serious national debate about Germanys
joined Ms Merkel on the stage in Mn- four years ago is the background: Ger- like a serious challenger to Ms Merkel option for disgruntled Merkel voters. world role. For now, Ms Merkel seems more in tune with
ster. But then weve ended up with a manys national colours of red, black when he took over the SPD in January, Prof Niedermayer says: There are still the public than Mr Schulz with her combination of caution
campaign thats just like the one in [the and gold, chosen for their appeal to con- has failed to capitalise on his initial suc- many people who are undecided. So and acceptance of more German responsibilities.
past election in] 2013. servatives. cess. While he is by no means finished as there is a potential to change things
The western city of Mnster, and the The chancellor has also benefited this a campaigner, he faces tough odds. The around in the campaign. tony.barber@ft.com

Skills shortage
MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription Chinese alcohol maker brews plan for training university
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK 2.70 Channel Islands 3.00; Republic of Ireland 3.00
EMILY FENG BEIJING bers after a late-1990s push by Beijing to The problem of many grads and not worst students have been steered into
Trump vs the Valley A Five Star plan? Dear Don...
create world-class universities. enough jobs, and not enough people vocational training, and thats why most
Tech titans need to minimise
political risk GILLIAN TETT, PAGE 13
Italys populists are trying to woo
the poor BIG READ, PAGE 11
Mays first stab at the break-up
letter ROBERT SHRIMSLEY, PAGE 12
Chinese alcohol maker Kweichow
HMRC warns Lloyds of Brussels Insurance market The best students were funnelled to trained in right areas exist, but theres of them are run like prisons. Now China
Moutai is to open a Moutai university
UK 3.80; Channel Islands 3.80; Republic of Ireland 3.80 SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017
Briefing
to tap new talent pool with EU base
customs risks THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

universities rather than vocational also the broader underlying problem of is trying to turn these prisons into entre-
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE TECHNOLOGY IS
Atlantic. PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

being swamped
as a dearth of skilled workers prompts
i Report outlines longer NHS waiting times
A report on how the health service can survive CHANGING AN
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped. PAGE 4

schools between 2011 and 2015 China working conditions; new grads cant preneurial hubs, which is mission im-
i Emerging nations in record debt sales Warning: this article may be
FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

government debt in the first quarter of this year,
upsetting LIFE & ARTS

local companies to launch training

taking advantage of a surge in optimism toward
emerging markets as trade booms. PAGE 15

3 Confidence in IT plans has collapsed

3 Fivefold rise in declarations expected
JAMES BLITZ WHITEHALL EDITOR
Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
How To Spend It
created nearly 500 universities that find good jobs in the industries they possible, said Jiang Xueqin, a Chengdu-
A survey has revealed that a
adjust its negotiation position with the
record 455 tall buildings are
planned or under construction
in London. Work began on
over disputed painting of Jane Austen
engulfed in
EU, a Whitehall official said. If running almost one tower a week

schools for future employees.

A computer system acquired to collect our own customs system is proving during 2016. PAGE 4
duties and clear imports into the UK much harder than we anticipated, that
may not be able to handle the huge ought to have an impact on how we i Tillerson fails to ease Turkey tensions
surge in workload expected once Britain press for certain options in Brussels. The US secretary of state has failed to reconcile

fresh tax probe

leaves the EU, customs authorities have
admitted to MPs.
HM Revenue & Customs told a parlia-
mentary 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.
graduated a further 5m students a year. study for, said Keegan Elmer, at the based education researcher and writer.
In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen. PAGE 9
Chic new lodgings
delivering CDS was challenging but
achievable. But, it added, CDS was a i Toshiba investors doubt revival plan
in Scotland
complex programme that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
HMRC assigned a green traffic light to filed for Chapter 11 bankruptcy protection. PAGE 16
3 Blow for bid to clean up Swiss image

Setting up a digital customs system
has been at the heart of Whitehalls
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
The Chinese group is best known for The glut of new graduates has instead non-profit China Labour Watch. Moutai has tried to add a university-
CDS, indicating it would be delivered on
time. But last month, it wrote to the i HSBC woos transgender customers
committee saying the programme had The bank has unveiled a range of gender-neutral
RALPH ATKINS ZURICH it followed a strategy offull client tax
been relegated to amber/red, which DUNCAN
titles such asROBINSON BRUSSELS
Mx, in addition to Mr, Mrs, Misscompliance
or but was still trying to
means there are major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.

FINANCIAL TIMES
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
apparent in a number ofkey areas. Credit
needs Suisse hascustomers.
of transgender been targeted by
PAGE 20 HM Revenue & Customs said it had
HMRC said last night: [CDS] is on sweeping tax investigations in the UK, launched a criminal investigation into
track to be delivered by January 2019, France and the Netherlands, setting suspected tax evasion and money laun-
and it will be able to support frictionless back Switzerlands attempts to clean up dering by a global financial institution
Datawatch

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,
making a fiery rice drink called baijiu, diluted the value of degrees and lowered Worried about youth unemployment, feel to its vocational school, whose
international trade once the UK leaves its image as a tax haven. and certain ofits employees. The UK
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.
HMRCs letters to the select commit-
tee, which will be published today, pro- AFP
Terror attacks inwith
co-operating

were contacted
Highlighted
western

attack byOthers
Europe after
authorities
offices in London, Paris and Amsterdam
Recent

Published daily except Sundays, New Years Day,

called Customs Declaration Service, are
vide no explanation for the rating
Lloyds of London chose Brus-
insurers to follow. Most of the
EU, with Dublin and Luxem-
The Swiss bank said yesterday it was tax authority added: The international
reach
itsattacks
notably the message
2011
of this investigation sends a clear
that there is no hiding place for
massacre bythose seeking to evade tax.
local officials
concerning client tax matters. Anders BreivikDutch
Norway, the
in prosecutors, who initiated the
Dutch authorities said their counter- action, said they seized jewellery, paint-
The lure of the exotic
Robin Lane Fox on the flair
of foreign flora HOUSE & HOME
parts in Germany wereBrussels attacks in Paris
also involved, ings and gold ingots as part of their

330 Hudson Street, Presidents Day, Good Friday, Memorial Day, Labor
while Australias revenue department and Nice, and the while French officials said their
probe;
likely to throw a sharper spotlight on change, but some MPs believe it was sels over five or six other business written in Brussels bourg thought to be more likely Norway Brussels suicide
said it was investigating a Swiss
Nice bank. investigation had revealed several

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
caused by Mrs Mays unexpected deci-
sion to leave the EU customs union.
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
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 mar-
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
Londons specialist insurance
homes for the industry. But
Mr Nelson said the city won on
its transport links, talent pool
and extremely good regula-
tory reputation.
Sources: Janes Terrorism and Insurgency Centre terror incidents in
Lex page 14
Paris
The inquiries threaten to undermine
efforts by the countrys banking sector
to overhaul business models and ensure
customers meet international tax
requirements following a US-led clamp-
and is the worlds most valuable alcohol wages for young workers. Further, grad- the government announced a shift back planned 13-hectare campus will have a
bombings have
thousand bank accounts opened in
bucked the trend
Switzerland and not declared to French
of generally low
tax authorities.
fatalities from
The Swiss attorney-generals office
western Europesaid it was astonished at the way this

New York, NY 10013 essential to Brexit could force London to JPMorgan eye options page 18 ket, said he expected other groups after the UK leaves the Insurers set to follow page 18
billions of dollars in fines.

Day, Martin Luther King Day, Thanksgiving,

down on evaders, which resulted in operation has been organised with the
deliberate exclusion of Switzerland. It
The probes risk sparking an interna- demanded a written explanation from
tional dispute after the Swiss attorney- Dutch authorities.

City watchdog sends a clear message as

company by market capitalisation uates are not being trained in the right to vocational training in 2014, vowing to library of 500,000 books.
generals office expressed astonish- In 2014, Credit Suisse pleaded guilty
ment that it had been left out of the in the US to an extensive and wide-
actions co-ordinated by Eurojust, the ranging conspiracy to help clients THE RISE
Escape OF
the taper ECO-GLAM
trap
banker loses job over WhatsApp boast
EUs judicial liaison body.
Credit Suisse, whose shares fell 1.2 per

Christmas Day and the day after Christmas Day.

evade tax. It agreed to fines of $2.6bn.
Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
subject ofinvestigations in the Nether-
lands, France and the UK. The bank said in Paris
Houlder in London, and Michael Stothard
Austens descendants insist the Rice portrait depicts her as a girl see magazine Bridgeman Art Library
How high earners can evade
a pension headache FT MONEY

despite its sales being dented by Chinas areas; 40 per cent of new graduates expand total enrolment in vocational In the past, vocational schools have
LAURA NOONAN DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to
JENNIFER THOMPSON LONDON

Subscriptions and Customer Service

A boastful WhatsApp message has cost
a London investment banker his job
and a 37,000 fine in the first case of
Shutdown risk as border
regulators cracking down on commu-
Christopher Niehaus, a former Jeffer-
ies banker, passed confidential client
information to a personal acquaint-
ance and a friend using WhatsApp,
according to the FCA. The regulator said
ban people from installing apps on their
private phones.
Brussels takes tough stance on Brexit
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set a precedent
in that it shows the FCA sees these mes-
with Spain handed veto over Gibraltar
390_Cover_PRESS.indd 1 19/01/2017 13:57

wall bid goes over the top nications over Facebooks popular Mr Niehaus had turned over his device saging apps as the same as everything
chat app. to his employer voluntarily. else.

Tel: +1 800 628 8088 US subscription rates, 1 year $406. Periodicals

Congressional Republicans seeking to The FCA said Mr Niehaus had shared Information shared by Mr Niehaus

avert a US government shutdown after
April 28 have resisted Donald Trumps
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
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
staffs communication.
Several large investment banks have
confidential information on the messag-
ing 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
anti-corruption campaign. found jobs outside their training in high schools and colleges from 29.34m been poorly regulated, often turning
included the identity and details of a
client and information about a rival of ALEX BARKER BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
Jefferies. In one instance the banker GEORGE PARKER LONDON Gibraltar yesterday hit back at the status within the single market after
boasted how he might be able to pay off STEFAN WAGSTYL BERLIN clause, saying the territory had shame- Brexit, the guidelines state it would
his mortgage if a deal was successful. The EU yesterday took a tough opening fully been singled out for unfavourable require existing regulatory, budgetary,
Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatment by the council at the behest of supervisory and enforcement instru-

uscirculation@ft.com, www.ft.com/subsusa
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
banks move towards a bring your own
device policy. Goldman Sachs has
clamped down on its staffs phone bills
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
postage paid at New York, NY and at additional
Britains plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
Spain. Madrid defended the draft
clause, pointing out that it only reflected
the traditional Spanish position.
ments and structures to apply.
Mr Tusk wants talks on future trade
to begin only once sufficient progress

to accept the proposals. encryption system that cannot be
US budget Q&A and accessed without permission from the
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
as iPhone-loving staff spurn their work-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
Kweichow Moutai said it would spend 2016, according to Zhaopin, a recruit- to 38.3m by 2020. into suppliers of cheap labour for com-
Facebook did not respond to a request Senior EU diplomats noted that has been made on Britains exit bill and
for comment. About 2.3m people will benefit from European Council president Donald Mr Tusks text left room for negotiators citizen rights, which Whitehall officials
Additional reporting by Chloe Cornish todays increase in the national living Tusks first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are
Lombard page 20 wage to 7.50 per hour. But the rise which are an important milestone on minister Theresa Mays allies insisted possible if certain conditions are met.

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will pile pressure on English councils,
which will have to pay care workers a
lot more. Some 43 per cent of care
staff amounting to 341,000 people
aged 25 and over earn less than the
mailing offices; Post-Master. Send address changes
the road to Brexit, sought to damp Brit-
ains expectations by setting out a
phased approach to the divorce proc-
ess that prioritises progress on with-
drawal terms.
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.
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

Rmb1.5bn ($220m) to build a self- ment website. For almost two decades, Chinas panies. In 2012 and 2013, investigations
www.ft.com/subscribenow new living wage and the increase is The decision to add the clause giving British officials admitted that the EUs after Brexit with a trade deal.
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For the latest news go to S&P 500 2365.93 2361.13 0.20 $ per 1.074 1.075 per $ 0.932 0.930 US Gov 10 yr 98.87 2.38 0.00
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297.99 297.73 0.09 Gold $
Mar 30
50.22
52.98
1248.80
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49.51
52.54
1251.10
Fed Funds Eff
%chg US 3m Bills
1.43 Euro Libor 3m
0.84 UK 3m
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0.66
0.78
-0.36
0.34
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1.169
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Monday 28 August 2017
Future of Europe
Labours Brexit shift puts pressure on May
Partys change of heart
gives Conservative rebels
a boost before big debate
GEORGE PARKER LONDON
ALEX BARKER BRUSSELS
UK premier Theresa May faces renewed
pressure from her own Conservative
party over Brexit after the Labour oppo-
sition announced it would change tack
and campaign to keep Britain in the EU
single market, at least during a transi-
tional period.
The move will embolden pro-Europe
Tories to push the prime minister for a
softer Brexit as MPs prepare for a debate
on the legislation that will put into effect
Britains departure from the EU.
Everything has now shifted to the
arguments we have been making for
some considerable time, said Anna
Soubry, the pro-European Conservative
who is a former business minister.
Another senior pro-Remain Tory
said: Colleagues will be wary of voting
with Labour but the leverage among
soft Brexit Tories has increased signifi-
cantly. It might shift what the govern-
ment is asking for.
Storm Harvey
US warns of
catastrophic
flood damage
A river runs through it: Buffalo
Bayou in Houston overflows its
banks and floods over Memorial
Drive and Allen Parkway
Jordan Anderson/DoubleHorn Photography
Central bankers optimism tempered by uncertainty over limits of their powers
Long-term growth challenge
and danger of political leaders
mis-steps worry policymakers
SAM FLEMING JACKSON HOLE
Mario Draghis address to a lunchtime
gathering of central bankers and aca-
demics in a Wyoming hotel last Friday
was characteristically austere in tone.
But the Italian economists message
was, in part at least, an optimistic one.
The cyclical recovery is gathering
both pace and geographical breadth,
thanks in part to the stimulus efforts of
central bankers, the European Central
Bank president said, adding that even if
inflation remained low, the euro area
economy was gaining ground.
We have multiple engines of growth
propelling the world economy, and that
is something that makes the momen-
tum much more sustainable, said Mau-
rice Obstfeld, the International Mone-
Labour hopes to push Mrs May, who
has a working majority in the House
of Commons of just 13, towards a transi-
tional deal that will extend by several
years UK membership of the single mar-
ket and customs union.
Keir Starmer, Labours Brexit spokes-
man, suggested that the transition
should last up to four years after the UK
left the union in 2019, potentially
putting Britains relationship with the
EU up for grabs at the next general elec-
tion, expected to be held in 2022.
Mrs May has insisted that the transi-
tion must end before the election but
has so far not said what the interim
arrangement should look like or
whether it should replicate the current
single market arrangement.
After months of confusion and fierce
internal debate over its Brexit policy, Sir
Keir wrote yesterday in The Observer
newspaper that the Labour party
wanted to maintain the status quo in
relations with Europe during the transi-
tion. He said the time for constructive
ambiguity was over, saying: Labour
would seek a transitional deal that
maintains the same basic terms that we
currently enjoy with the EU.
In a further change of heart partly
Houston, the capital of the US oil and
gas industry, was hit by catastrophic
flooding over the weekend as Tropical
Storm Harvey caused torrential rains
across southern Texas.
Harvey weakened from a Category 4
hurricane to a Category 1 after making
landfall near the port of Corpus Christi
on Friday night, but brought heavy
rain to Houston 150 miles to the
north-east. The US National Weather
Service called it unprecedented and
said all impacts were unknown and
beyond anything experienced.
Record flooding was expected in
many parts of south-east Texas,
creating a life-threatening situation,
with heavy rain expected to continue
until at least Wednesday.
More than 25in of rain fell in 24
hours in some areas, with 35in
tary Fund chief economist, in an inter-
view with the Financial Times shortly
afterwards.
It is a synchronised recovery,
broader by far than anything we have
seen for a decade.
Benign as that global economic back-
drop may appear, dialogue among the
central banking elite at the Federal
Reserve Bank of Kansas Citys sympo-
sium was shot through with anxiety,
both over the limits of what central
bankers can do to lift longer-term
growth and over the risk that politicians
pursue feckless policies that short-cir-
cuit the rebound.
Both Mr Draghi and Janet Yellen, the
Fed chair, warned for example against
stripping back reinforced post-crisis
regulatory standards that have under-
pinned stronger bank lending. The ECB
president added that nations could do
enormous harm to growth if they
embarked on protectionist crusades
in a barely veiled assault on Donald
Trumps America First agenda.
FINANCIAL TIMES
INTERNATIONAL
Keir Starmer: says the time for constructive ambiguity is over
driven by pressure from trade unions
party officials said Labour had not ruled
out some form of single-market rela-
tionship in the longer term if the EU
relaxed its rules on free movement.
Labour would accept payments into
the EU budget, free movement of people
and the jurisdiction of the European
Court of Justice during the transition as
a price worth paying for a smooth exit.
Downing Street said the new policy
showed Labour had no idea what it
wanted from Brexit.
expected by last night, the weather
service said.
South-east Texas holds one of the
highest concentrations of energy
infrastructure in the US, with
refineries, chemicals plants, pipelines
and terminals. ExxonMobil, the oil
and gas group, said yesterday that the
flooding had led to operational
issues at its Baytown refinery
complex.
It was in the process of a safe and
systematic shutdown of operations,
while taking all precautions to
minimise the impact to the
community and employees.
Royal Dutch Shell also said it was
starting a controlled shut down of its
Deer Park refinery and chemical plant
as a result of the rainfall and nearby
flooding. It said only essential
Jackson Hole. Symposium
Peter Henry, dean of NYU Stern
School of Business, said: It is true that
we have broader recovery than we have
had in a very long time but keep in mind
the recovery is still quite weak and tepid
relative to what we have seen in the past.
We are hearing central bankers
essentially say to world leaders and law-
makers we have done our job and we
need you to step up.
Conversations at recent Jackson Hole
symposia has focused on traditional
central banking concerns among
them, financial system plumbing, infla-
tion targets and negative interest rates.
As numerous speakers at the gatherings
noted, this years meeting was instead
dominated by discussions that were
largely beyond central banks power to
influence.
Yet the choice of topics at the meet-
ings was no accident. The populist
upsurge in countries such as the US and
UK has focused attention on the danger-
ously uneven nature of the recovery.
Traditional economic models in cen-
EPA/Andy Rain
The Labour shift will be welcomed by
most businesses and reflects the Treas-
ury view that companies should face
only one transition when the UK
moves from an interim regime to a final,
settled state based on a proposed free
trade agreement.
David Davis, Brexit secretary, was due
to travel to Brussels today for the latest
exit talks. Michel Barnier, the EU chief
negotiator, has insisted there can be
no talks about a relationship until
sufficient progress is made on divorce
personnel would stay on the site until
the end of the week.
The volume of rainfall had already
reached the level of Tropical Storm
Allison, which devastated Houston in
2001, the National Weather Service
said, and it was still raining.
Five people were reported dead as a
result of the flooding overnight,
according to the Houston Chronicle.
Police said at least 1,000 people had
been rescued from the rising waters.
The National Hurricane Center
warned people to expect flash floods
in south-east Houston and urged
people not to travel in the area if they
were in a safe place. Greg Abbott, the
governor of Texas, told Fox News the
storm was bad news growing worse.
Brock Long, head of the Federal
Emergency Management Agency, said
tral banks have tended to pay little
attention to these fractured fortunes.
The central banking tribe is now try-
ing to understand what is driving phe-
nomena such as weak productivity,
workers falling share of national
income and growing geographical ine-
quality and to come up with recom-
mendations on how to respond.
For example, economists have for
Fresh air: Janet Yellen and Mario
Draghi take a break at Jackson Hole
terms. The EU says any transitional deal
must be in the interests of the union
but few member states are likely to
oppose a time-limited phase in which
Britain had to meet its existing obliga-
tions but with no say or voting rights.
The government has said the country
would leave the single market and cus-
toms union at the point of Brexit but this
month said it would try to negotiate a
new customs relationship with the EU
during a transition that replicated the
existing arrangement.
However, it has not committed itself
to staying in the single market, with its
implied acceptance of EU laws, regula-
tory bodies, budget contributions, free
movement and the direct jurisdiction of
judges in Luxembourg.
Labour MP Chuka Umunna believed
Mr Corbyns move would embolden
Tory MPs to mobilise for a softer Brexit.
This is a most welcome announcement
and a significant moment in the Brexit
debate so far.
A jobs first Brexit is only possible
through continued British membership
of the single market and customs
union, he said.
See Editorial Comment
Wolfgang Mnchau See Comment
on CNN that the disaster was going to
be a landmark event and that the
agency was gearing up for the next
couple of years of work in Texas.
The storm is the first large disaster
to hit the US since Donald Trump
became president. It will be a test of
the federal governments ability to
respond to complex challenges.
Houston has grown rapidly: the
greater Houston metropolitan area has
a population of about 6.9m, up 2.1m
since Allison, which killed 23 and
caused damage estimated at $5bn.
Oil and gas production platforms in
the Gulf of Mexico, shut in 430,000
barrels a day of oil production, some
24 per cent of the regions output,
according to S&P Global Platts. About
900,000 b/ad of oil refining capacity
was closed on Saturday.
decades done a good job of explaining
why free trade would raise average
incomes within the countries that open
up, yet they have spent less time exam-
ining policies aiding those hurt by the
arrival of cheap imports.
As Nina Pavcnik of Dartmouth Col-
lege said in a presentation, the adverse
effects of import competition on earn-
ings and employment can be highly geo-
graphically concentrated and remarka-
bly long-lasting.
The onslaught of technology has been
an even more critical driver of the wage
polarisation in a range of economies, the
symposium heard. Again, economists
are struggling to come up with answers
to a problem that will probably become
pervasive.
I dont see the technological change
slowing down. It is a phenomenon that is
here to stay, said Loretta Mester, the
president of the Cleveland Fed.
How does society sustain itself when
there are more machines and fewer
jobs?
3
US monetary policy
Cleveland Fed
chief urges rate
rise despite
weak inflation
SAM FLEMING JACKSON HOLE
Weak inflation is not a sign of economic
weakness and should not interrupt the
Federal Reserves rate-rise strategy, the
head of the Cleveland Fed argued.
Interviewed on the sidelines of the Kan-
sas City Feds annual Jackson Hole gath-
ering, Loretta Mester told the FT she
expected the US economy to grow above
trend and job gains to continue.
The central bank should continue its
gradual rate increases even though
price growth remained below the 2 per
cent target, she said.
The real question is where is infla-
tion going. I dont think we should wait
until both our goals [price stability and
maximum employment] are met until
we start removing some of the accom-
modation, Ms Mester said.
There is continued growth, labour
markets have continued to add jobs at a
good pace. I think this gradual reduc-
tion of accommodation is very consist-
ent with the economy as we see it and
expect it to evolve.
The Fed is divided over the persistent
failure of inflation to hit its target. While
its officials have stressed one-off factors
as explaining the recent bout of low
readings, they are also acutely aware
that the central banks favoured meas-
ure of core price growth has failed to hit
the 2 per cent target for five years.
Falls in cell phone and prescription
drug prices have recently affected read-
ings and would take a while to work
through, meaning inflation readings
may remain weak in the near term, Ms
Mester acknowledged.
This should not deter the Fed she said,
arguing: Those are relative price
shocks, they are not signalling there is
this big fall-off in aggregate demand.
Ms Mester added: I am not in the camp
that we have to see inflation rise to 2 per
cent before we take the next move.
The Cleveland Fed president said
surging asset prices were a risk factor
she was bearing in mind as she argued
for further tightening.
While some investors have flagged up
worries over ultra-low bond yields, Ms
Mester said: I dont think the low bond
yields [are] telling us that we are going
into recession, and nor do I think that is
the modal view of most economists.
As long as more bullish voices in the
Fed prevail, the central bank is next
likely to lift its key rate in December
after starting to pare back its $4.5tn bal-
ance sheet during the autumn.
Some policymakers are examining
whether more poorly understood fac-
tors may be holding price growth back.
Robert Kaplan of the Dallas Fed said he
wanted to be patient when it came to
lifting rates as he assessed structural
headwinds to price growth.
These included the disruptive influ-
ence of technology, with jobs being
replaced by computers, incumbent
companies facing digitally focused chal-
lengers and the internet making it easier
to shop for bargains.
Sectors and companies with pricing
power were now unusual, he said in a
separate interview. I want to take more
time to understand how these conflict-
ing forces are unfolding, he said.
Janet Yellen, Fed chair, made no
explicit comments on the monetary pol-
icy outlook when she spoke at the Jack-
son Hole gathering. However, the Fed
appears on track to announce a start on
reducing its balance sheet at its next
meeting in September.
See Comment
The debate also centred on the need
for fiscal policymakers to be prepared to
take more active steps to prepare their
own responses to the next downturn.
Alan Auerbach and Yuriy Gorod-
nichenko of the University of California
Berkeley argued in a session on Satur-
day that ramping up public spending in
a flailing economy can improve a coun-
trys fiscal health even when public
debt is already high suggesting the
traditional view that treasuries should
always focus on tackling indebtedness is
dangerously misguided.
Yet as Fed policymakers are acutely
aware, the US Congress is singularly ill-
placed to inject a big fiscal stimulus into
the next US recession because of its
political paralysis. This may leave cen-
tral banks once again at the core of
future economic rescue missions.
Professor Obstfeld said: You actually
need investment in people, you need
real policies, not monetary policies. So
central bankers have to be very clear
about the limits of what they can do.
4 FINANCIAL TIMES Monday 28 August 2017

INTERNATIONAL

Central Europe India

US envoy warns Russia over Ukraine crisis Modi and BJP

Negotiator confirms
Washington may rethink
position on arming Kiev
ROMAN OLEARCHYK KIEV
US-Russian relations will be crippled
unless a solution is found to the Ukraine
crisis, the newly appointed US envoy for
Ukraine negotiations has warned, dash-
ing any hopes Moscow may still harbour
for rapprochement under Donald
Trumps presidency.
Kurt Volker also confirmed that the
US administration was seriously con-
sidering whether to change its position
and deliver lethal weapons to Ukraine.
His comments in Kiev came after Jim
Mattis, the US defence secretary, last
week spoke in favour of arming Ukraine
as he stood alongside President Petro
Military manoeuvres. Zapad 2017
Poroshenko on the 26th anniversary of
the countrys independence from the
Soviet Union.
Mr Volker warned that Russia was
going to have to make some fundamen-
tal decisions on whether to comply
with the Minsk accord aimed at bringing
peace to east Ukraine.
Washington was also considering
whether to provide the defensive weap-
ons that Ukraine has long requested to
help protect itself against further Rus-
sian aggression, something former US
president Barack Obama opposed.
[What] the Trump administration
now is looking at [is] do we continue this
rejection from the Obama administra-
tion, or do we change. There isnt any
new decision yet, but at very senior lev-
els people are taking that very seri-
ously, Mr Volker said. Of course, it has
to be a decision from the president.
His comments will not be welcomed
in Moscow, which believed Mr Trumps
election could bring an improvement in
relations with Washington.
The Kremlin had hoped the Trump
administration would take a more
accommodating stance over Ukraine or
put the issue on the backburner.
Instead, Mr Volker said Washington
was concerned Ukraine had slipped off
the front pages and the Trump admin-
istration with Germany and the
Macron administration in Paris was
raising the issue back up.
[There] is perhaps a growing sense
that the conflict itself is actually getting
worse and that it is going to continue to
get worse unless we do something, he
said.
Mr Volker, the director of the McCain
Institute think-tank and a former US
ambassador to Nato, was mandated last
month to support European leaders in
talks with Moscow on the fighting that
has killed 10,000 in Ukraines east.
Days after his first meeting with
Vladislav Surkov, the Kremlins Ukraine
envoy, Mr Volker said Russia seemed
prepared to live with the status quo of
a still-smouldering conflict.
But at the same time, I dont think its
working out very well for them, he said.
There is a cost to Russia internationally
being in the Donbass, the sanctions as
well as politically. And frankly that situ-
ation is going to get worse over time, not
There is a cost to Russia
internationally being in
the Donbass, the sanctions
as well as politically
better. A situation where Russia is going
to be frozen out of diplomatic relation-
ships, of economic relationships,
because of this is certainly not some-
thing that Russia would want. I think
they have got to make their own choice,
their own calculations.
Moscow was probably surprised at
both Ukraines resolve and transatlantic
unity on sanctions, he added, and had
been wanting to test, to see how solid
this is after the election of Mr Trump
and his French counterpart Emmanuel
Macron.
But things havent moved . . . they
are going to have to take that into
account, he said.
Mr Volker described what he saw on a
frontline visit to east Ukraine as a hot
war where separatist forces under
Russian command routinely fire upon
and obstruct ceasefire monitors.
under fire
after deaths
linked to guru
rape trial
KIRAN STACEY NEW DELHI
Narendra Modi and his Bharatiya
Janata party have been criticised by
one of Indias highest courts after
mob violence erupted in the north of
the country, leaving 36 people dead.
Judges at the Punjab and Haryana
High Court on Saturday censured both
the Indian prime minister and Manohar
Lal Khattar, the chief minister of the
state of Haryana, for allowing the
outbreak of violence among followers
of a popular guru who had been
convicted of rape.
The court accused the governing BJP
of allowing the rioting to occur to shore
up votes from followers of Gurmeet
Ram Rahim Singh, the flamboyant
leader of the Dera Sacha Sauda sect. Mr

Kremlin war games Singh has been convicted of raping two

devotees and will be sentenced today.
The judges said: National integration

foment uneasiness
and law and order are above everything.
We are one nation, not a party nation.
They added: It is the prime minister of
India, not the BJP.

in eastern Europe The court was particularly explicit in

Exercises next month will take
place with east-west relations
at most strained for decades
NEIL BUCKLEY EAST EUROPE EDITOR
They are still more than two weeks
away, but Russias Zapad 2017 war
games, potentially the countrys largest
European exercises since the cold war,
are creating jitters across eastern
Europe.
For seven days from September 14,
Russia will conduct large-scale military
manoeuvres spanning western Russia,
its Baltic enclave of Kaliningrad and its
ally Belarus which borders three Nato
members, Poland, Latvia and Lithuania.
While Moscow claims fewer than
13,000 troops will take part in Zapad,
western capitals expect the number
could reach six figures.
Concerns are understandable. The
exercises are taking place with east-west
relations at their most strained since the
fall of the Berlin Wall almost three dec-
ades ago and shortly after the US
imposed new sanctions over Moscows
alleged interference in its presidential
election.
Russia has also used drills in the
past as cover for real military action.
A snap exercise in 2014 masked
the launch of Moscows annexation of
Crimea.
The head of Ukraines national secu-
rity council said last week it had not
excluded that Russia could use Zapad
2017 to create strike forces for the mili-
tary invasion of Ukraine. Latvia, Esto-
nia and Lithuania, the three former
Soviet Baltic republics, have voiced sim-
ilar fears.
Ben Hodges, the commanding general
of the US army in Europe, has warned
the exercise could be a Trojan horse to
bring Russian soldiers and weapons into
Belarus and leave them there. They
say, Were just doing an exercise, and
then all of a sudden theyve moved all
these people and capabilities some-
where, he says.
Russia dismisses such fears. Grigory
Karasin, its deputy foreign minister,
countered that artificial buffoonery
over the routine Zapad 2017 exercises is
aimed at justifying the sharp intensifi-
cation of the Nato bloc along Russias
borders.
Based on preparations to date, west-
ern officials estimate the exercises will
involve nearer 100,000 military person-
nel rather than the 12,700, as well as 680
pieces of equipment, that Moscow says
will be deployed.
Zapad, which means west and
refers to Russias western military dis-
trict, is part of a four-year cycle of exer-
cises that rotate through its eastern,
central and Caucasus as well as western
districts.
Alexander Golts, an independent
Russian military analyst, says previous
exercises in this cycle have all deployed
100,000 or more personnel, while
Zapads geographical scope suggests a
huge concentration of troops.
Russias general staff are geniuses at
manipulating an international agree-
ment obliging it to invite European
observers to any exercise involving
more than 13,000, by holding multiple
supposedly separate drills concurrently,
he says.
Keir Giles, an associate fellow at the
UKs Chatham House think-tank, says:
Put those things together and there are
strong grounds for believing this is likely
to be a much larger event than the Rus-
sian official figures.
The manoeuvres are clearly designed
to send a strong message to Nato, which
has strengthened its eastern flank since
the 2014 Ukraine crisis by siting four
multinational battle groups in Poland
and the Baltics.
But despite the nervousness among
Russias neighbours, there is less reason
to believe the drills could be cover for an
attack, say analysts.
Training: Unlike in 2008, when Russia invaded
paratroopers Georgia days after completing exercises
wait to board in its Caucasus district, there has been
a helicopter no sign of Moscow laying the political
during an and propaganda groundwork for mili-
exercise at tary action this time.
Stavropol, The political message delivered
Russia, in 2015 by . . . these military drills is hands off
Eduard Korniyenko/Reuters
Russian interests, says Fyodor Luky-
anov, chairman of Russias Council on
Foreign and Defence Policy, a Kremlin
advisory group. But there is absolutely
no willingness to escalate anything.
Moscows mood is confusion and
wait-and-see after the Trump admin-
istration confounded its hopes of a
Were seeing sharp improvement in US-Russian rela-
tions, says Mr Lukyanov.
the Russian Even leaving equipment in Belarus
military on would need the agreement of Alexander
display in a Lukashenko, its autocratic president.
But Samuel Charap, a senior political
way that you scientist at the Rand Corporation, says
dont often Mr Lukashenko is anxious not to make
see it Belarus a target for the west and has
resisted pressure in the past to host Rus-
sian military infrastructure.
Were seeing the Russian military on
display in a way that you dont often see
it, says Mr Charap, and seeing how
they think about contingencies and
about potential conflict . . . with Nato.
its condemnation of Mr Khattar, whom
it criticised for allowing a crowd of about
100,000 of Mr Singhs followers to mass
outside the courtroom. It accused him
National integration and
law and order are above
everything
Punjab and Haryana judges
of making a political surrender just to
allure the vote bank.
Mr Modi said yesterday: Those who
take the law in their hands or take to vio-
lence will not be spared, whoever they
are. Local reports suggest, however,
that he will not sack Mr Khattar.
The riots started on Friday afternoon
soon after Mr Singh was convicted.
Crowds attacked journalists and set
media vans on fire in Haryana.
In neighbouring Punjab, where Mr
Singh is also popular, it was reported
that at least two railway stations had
been set on fire, as well as petrol pumps
and a government tax office.
By Saturday evening the violence
had died down but the death toll had
risen to 36 with 250 people injured,
according to police.
The army had declared a curfew in
Sirsa, home of Mr Singhs headquarters,
and placed a security cordon around the
complex. Judges have ordered the sei-
zure of the property to help pay for the
damage caused.
The case and its aftermath have shone
a light on how some of Indias most pop-
ular religious leaders are able to attain
positions of significant political power.
Mr Singh supported the BJP in 2014,
helping to wrest control of Haryana
from the Congress party.
Mr Singh is one of the most colourful
of Indias gurus also known as god-
men. He is known for travelling around
on a motorbike, dressing in sequinned
outfits, and releasing his own records
and films.
On Friday, he was flown by helicopter,
accompanied by an assistant and sev-
eral bags of luggage, to a jail in Rohtak.
He will be sentenced there.

Fur play Rise of pet-loving middle classes paves way for reign of cats and dogs
STEVE JOHNSON LONDON
Pet ownership has risen dramatically in
developing countries since 2000, even
as it has remained little changed in the
developed world.
The trend is indicative of a growing
middle class in emerging markets, as
well as changing lifestyles and attitudes
towards cats and dogs.
Since 2003, the number of pet dogs in
emerging market countries has jumped
51 per cent to 243m. It has inched up just
5 per cent to 137m in the developed
world, according to researcher Eurom-
onitor, based on data from 54 countries.
Similarly, cat ownership in emerging
markets has leapt by 49 per cent to
126m, far outstripping the 5 per cent rise
to 155m in wealthy countries.
In poor countries people are more
focused on a chicken that will lay eggs or
a pig that might eat their waste. Its only
as they get a bit richer that that changes.
Pets might be seen as a relative luxury
purchase, said Charles Robertson at
Renaissance Capital, an emerging mar-
ket-focused investment bank.
Paula Flores at Euromonitor said:
The rise in disposable income [particu-
larly Asia] has been significant over the
past 10 years. Thats important. If peo-
ple are struggling to buy food for them-
selves, they will not buy it for a pet.
Ms Flores also cited the importance of
lifestyle changes in much of the devel-
oping world, with people typically hav-
ing children later, or not at all, and view-
ing a pet as a child substitute. There has
also been a rise in people living alone
and seeking companionship.
This has coincided with a change in
attitude in cities, with cats and dogs
increasingly seen as indoor pets, rather
than animals that belong in a yard.
There are more places that are pet
friendly; cat and dog cafs have been
expanding exponentially across Asia,
said Ms Flores, who added that pet own-
ers in emerging countries were typically
younger than those in the west, so the
impact of social media in encouraging
ownership is that much greater.
The west still accounts for most
spending, with pet owners in the US ex-
pected to lavish $46bn on their compan-
ions this year more than two and-a-
half times the gross domestic product of
North Korea, and larger than the econo-
mies of 122 countries, the UN found.
But rising pet ownership in emerging
markets is creating opportunities for
sales of pet food and related goods and
services. Since 2012, annual spending
on pet care in Asia-Pacific excluding
Japan has risen 68 per cent to $6.5bn,
said Euromonitor, with rises of 20-30
per cent in the Middle East and Africa,
eastern Europe and Latin America. In
contrast, spending has risen only 12 per
cent in North America, 8 per cent in
western Europe and 1 per cent in Japan.
China alone has seen annual spending
rise by $1.3bn since 2012, with Brazil,
Russia and Mexico all seeing growth of
above $500m, with only the US market
expanding faster.
Despite 25.9m households owning
dogs, bettered only by the US and Brazil,
China has lagged behind most of the rest
of Asia. Only 5.6 per cent of households
own a dog and 1.5 per cent a cat. This is
little more than the rock-bottom rates of
5.5 per cent and 0.5 per cent respectively
in poorer India, which is catching up. Its
canine-owning population has expand-
ed by120 per cent since 2003, with dogs
becoming a middle-class status symbol.
The number of homes with a cat has
risen by 67 per cent in the same period.
Levels of dog ownership remain very
low in Muslim countries, such as Saudi
Arabia, Egypt, Malaysia, Morocco and
Turkey, where they are often regarded
as unclean. Euromonitor said this reli-
gious taboo appeared to be weakening.
Monday 28 August 2017 FINANCIAL TIMES 5
6 FINANCIAL TIMES
Interview: To some he is a miracle worker who ended the countrys genocide and launched an economic
revolution. To others he is suppressing dissent and storing up trouble. So who is Paul Kagame?
P
aul Kagame, Rwandas
soldier-president, runs what
is arguably Africas most
orderly and disciplined soci-
ety. Flowerbeds are immacu-
late, villagers wear shoes (by decree)
and local officials strain to meet targets,
whether raising cassava yields or reduc-
ing maternal deaths. Yet despite the
seemingly clockwork system and care-
fully laid-out development plans
among the most ambitious on the conti-
nent for Mr Kagame, the memory of
chaos and violence is never far away.
That is hardly surprising given
Rwandas harrowing history and his
own formative experiences as a refugee
and guerrilla. In 1994, the Hutu major-
ity attempted to exterminate the Tutsi
minority and its moderate Hutu sympa-
thisers, hacking as many as 1m people to
death, nearly 15 per cent of the popula-
tion, in 100 blood-soaked days.
Mr Kagame, a Tutsi brought up in a
refugee camp in Uganda after his par-
ents had fled an earlier anti-Tutsi
pogrom, received his political education
in the bush, first as a soldier in the Ugan-
dan civil war and then, in 1990, leading a
ragged rebel force in Rwanda. Hiding for
Rwanda is catching up
with Uganda
GDP per capita ($000, purchasing
power parity)
Tanzania Forecast
Uganda
Rwanda
Burundi
D R Congo
1994 2000 05 10 15
Source: IMF
more than a year in the rugged Virunga
mountains he learnt to make strategy
where no obvious path existed.
It is that mixture of planning and
improvisation that underpins what is
probably Africas most daring experi-
ment in nation building and social engi-
neering, one that has born tangible fruit
but has bitterly divided opinion outside
Rwanda and occasionally within,
although outright dissent is rare.
It is not that we developed or grew up
under normal conditions, Mr Kagame
says with some understatement during
a three-hour interview on the eve of his
inauguration for a third presidential
term. Sitting in his presidential mansion
in what was, in pre-genocidal times, an
upmarket hotel, he is spidery thin but
with an unmistakable authority.
Though he speaks in little above a whis-
per, each word hangs potent in the air.
Officially, he won this months elec-
tion, which he fought against a few little-
known candidates, with 98.7 per cent of
the vote. It was a pulverising sceptics
say unlikely victory, about which he
deadpans: There is nothing that is 100
per cent, maybe except this vote. Con-
sidering where Rwanda has come from
and where it is now, he insists, the result
should be taken at face value. Now
there is stability, theres a sense of secu-
rity, there is hope.
No criticism
A tiny, landlocked country where 12m
people are squeezed on to a thousand
hills, the new Rwanda is a development
state with echoes of east Asia. It is Mr
Kagames record of producing rapid
growth and of extracting maximum
social gain from minimum resources
that has endeared him to development
agencies, even if human rights organisa-
tions accuse him of stifling political
debate and running a police state.
Rights groups have accused Mr Kag-
ames administration of killing tens of
thousands of Hutus in refugee camps in
the neighbouring Democratic Republic
of Congo, assassinating political oppo-
nents abroad and even of rounding up
street vendors and prostitutes at home.
The president brooks no criticism
from westerners who, he says, aban-
doned the country in its darkest hour
and who fail to understand that pluralist
prescriptions could be fatal in a country
where the majority recently attempted
to expunge the minority. In poor coun-
tries, democracy is more about access to
calories, schooling and healthcare than
about periodic voting exercises, say his
officials. Foreign critics, adds Mr Kag-
ame, can go and hang.
Im not British. Im not American.
Im not French. Whatever thing they
practise, that is their business. I am an
African. I am Rwandese, he says.
Attempts to impose cookie-cutter forms
of liberal democracy on countries from
Afghanistan and Syria to Libya have
proved disastrous, he adds. You think
these countries will be countries again?
Not maybe in our lifetime.
FT BIG READ. RWANDA
By David Pilling and Lionel Barber
Rwandans
understand
the greater
goal
5
4
3
2
1
0 recently re-elected
22
When Mr Kagames Rwandan Patri-
Kagame on otic Front took over in July 1994, there
a third term were bodies piled high in Kigali, the cap-
ital, that were being eaten by rats, cats
There is and dogs. The priority was pacification
nothing that and to organise a traumatised society to
is 100 per prevent crops rotting in the field.
Rwanda has come a long way since
cent, maybe then. Kigali is now among the safest and
except this smartest cities in Africa. Since he for-
mally took over as president in 2000,
vote . . . growth in gross domestic product has
Now there is averaged 8 per cent a year, among the
stability, a best on the continent, according to the
World Bank, though the economy has
sense of recently slowed significantly. While
security, some critics quibble with the numbers,
hope poverty has fallen sharply, as has child
and maternal mortality. Unusually in
rapidly developing countries, inequality
has narrowed, partly because of social
On western programmes, including the provision of
a cow to the poorest citizens. Rwanda
democracy has developed smart new road and
Im not fibre-optic networks and several indus- that our common culture identifies us,
tries including tourism, coffee and tea,
British. light manufacturing and mining.
Im not Yet, as Mr Kagame, 59, embarks on a
new seven-year term, questions are
American.
being asked about the durability of a
Im not system so apparently dependent on one
French. man. Under the new constitution, he
could theoretically stay in office, subject
Whatever to elections, until 2034, though he has
thing they indicated that this should be his last
practise term. Even admirers wonder whether
he might be Rwandas equivalent of
is their General Josip Tito, who kept Yugoslavia
business. together only for it to shatter after he
I am an was gone.
Thats the central question that
African. I am envelops Rwanda, says Stephen Kinzer,
Rwandese who wrote a favourable Kagame biogra-
phy. It is the question that divides the
people who support Kagame and those
who oppose him in the outside world.
On ethnic Some think he is laying the foundations
unity for peace, others think the opposite.
Critics say efforts to stop talk of eth-
We are nicity provides cover for Tutsi rule. But
trying to Mr Kagame sheds only faint light on
talk people that question. In a rare flash of anger
during the interview, he says he finds it
out of this bizarre that analysts personalise the
nonsense of issue. Yet he quotes an anxious Rwan-
dan businessman exhorting him to stay
division. Can on because the social trust created since
we not live the genocide could evaporate without
happily him. If you go too early, Im afraid
things will fall apart, the man said.
within one
border? Ethnic divisions
Security is paramount. Rwandas geno-
cidaires those who organised the 1994
killing under the slogan Hutu Power
must never be allowed to regain a
foothold, physical or ideological, say
defenders of the state apparatus.
It is this sense of precariousness that
led Mr Kagame, in 1996 and in defiance
of international critics, to send
Rwandas army to the east of what was
then Zaire to attack refugee camps
where former genocidaires were plotting
raids into Rwanda. He also integrated
former members of the Hutu regime
into the Rwandan army in an effort, ulti-
mately successful, to win over Hutu sup-
port. Today, it is the same conviction
that makes his government wary of
untrammelled free speech in a country
where genocidaires once took to the air-
waves to urge Hutus to hack their Tutsi
neighbours to death.
Stamping out ethnic divisions has led
Mr Kagame to take radical measures.
He ordered schools to switch from
teaching French to English, though
French and Kinyarwanda remain offi-
cial languages. He also pushed for fellow
exiles, many Tutsis who had picked up a
first-class education abroad, to return.
In an effort to create a new sense of iden-
tity, he has made it virtually taboo for
Rwandans to identify as either Hutu or
Tutsi. The new national anthem, writ-
ten by repentant genocidaires, proclaims
our single language unifies us.
During the interview, Mr Kagame
says it matters little whether there are
real physical differences between Hutus
and Tutsis or whether these were arbi-
trary distinctions codified by race-
obsessed imperialists. We are trying to
reconcile our society and talk people out
of this nonsense of division, he says.
Some are short, others are tall, others
are thin, others are stocky. But we are all
human beings. Can we not live together
and happily within one border? Mr
Kagame has taken a DNA test that, he
says, reveals him to be of particularly
complex genetic mix. The implication,
he says, is that he, the ultimate symbol
of Tutsi authority, has some Hutu in his
genetic make-up.
If Mr Kagame rejects the imposition
of western democracy is there some-
thing called democracy without putting
the western thing [first]? he argues nomination signatures were declared
that his government is creating a partici-
patory system rooted in tradition.
Rwanda has been a sophisticated cen-
tralised state with its own tax and legal
system since the 16th century. His min-
isters cite regular consultations with
Forty per cent of Rwandans
live in poverty
Percentage of the population below
the poverty line is falling
Burundi
DR
Congo
ance targets and fine-tuning policies.
Kenya
Rwanda
Tanzania
Uganda
0 20 40 60
2015 estimates
Source: CIA Factbook
citizens and target-setting for officials as
evidence of a consensus-driven system.
Depending on your perspective,
Rwanda can feel stifling or socially cohe-
sive. In the hillsides, where more than
two-thirds of its people live, there is lit-
tle sense of private life and recommen-
dations from the government
whether on crop selection, living
arrangements or relocation can feel
like edicts. Survivors and perpetrators
of the genocide live cheek by jowl and
resentment can erupt over something as
simple as who gets a state-gifted cow.
Nothing is perfect, says Mr Kagame,
but I find [here] the principles and
ingredients of a democratic society that
answers to its people.
SOUTH SUDAN
UGANDA
Kisangani
Kampala
RWANDA
Kigali
Bujumbura
BURUNDI
TANZANIA
DEMOCRATIC
Dar es Salaam
REPUBLIC
OF CONGO
ZAMBIA
Not all Rwandans agree. Diane
Rwigara, daughter of a prominent busi-
nessman and would-be presidential
candidate, criticises what she calls the
lack of political space. We are control-
led in all aspects of our lives from poli-
tics to business to agriculture, she says.
Ms Rwigara, who alleges that her father
was murdered by the state in 2016, saw
her presidential run cut short when
invalid. Of Mr Kagames overwhelming
presence, she says: They fear the presi-
dent more than they fear God.
Will Jones, an expert on Rwanda at
the UKs Royal Holloway University,
takes a more benign view. Its not a per-
fect Swiss watch, he says, but there are
no parallels of Rwandan efficiency else-
where in Africa. Mr Kagame, he says,
combines the Marxist ideology he
imbibed in Uganda with a self-
appointed role as CEO of Rwanda Inc.
The government is an extremely seri-
ous bunch of technocrats, obsessed
with collecting data, setting perform-
A central part of the strategy to eradi-
cate ethnic divisions is nation building.
Jean-Paul Kimonyo, a presidential
adviser, says the idea is underpinned by
a strong sense of Rwandan nationalism.
That explains, he says, the pull felt by
exiles in refugee camps to return home
and the willingness to make personal
sacrifices in the interests of national
Monday 28 August 2017
Paul Kagame:
for a third
seven-year term
as president
Thomas Mukoya/AFP
progress. If you dont understand that,
you cant understand Rwanda, why peo-
ple are giving up some freedoms for a
greater goal.
Personal sacrifices
Rwandas continued progress is not
guaranteed. Some describe gains,
though impressive, as low-hanging
fruit. One of the most densely populated
countries in the world, Rwandans strug-
gle to be self-sufficient in food, let alone
to earn scarce foreign exchange through
exports. Squeezed between much big-
ger nations, Rwanda is a blip on the bor-
der of the mighty, dysfunctional Demo-
cratic Republic of Congo, and heavily
dependent on the co-operation of
Kenya, Tanzania and Uganda for access
ETHIOPIA to the outside world.
The Kagame government is respond-
ing with a risky investment strategy
SOMALIA designed to turn Rwanda into a confer-
KENYA ence-cum-tourism destination and
high-tech regional hub. It is banking on
Nairobi everything from cargo delivery drones
to wired-up villages to boost develop-
ment. That has meant making heavy
investments in infrastructure, a state of
the art convention centre and an ini-
tially lossmaking national airline.
Early investments in five-star hotels
and telecoms, since divested, came
good, but that is no guarantee Rwanda
can repeat the trick. The countrys cur-
200 km
rent account deficit last year was 14.5
per cent according to IMF forecasts and
it remains dependent on aid for at least a
third of its budget, says the World Bank
though that is down sharply from previ-
ous years. There is also criticism,
rejected by the government, that heavy
state involvement is stifling the private
sector, necessary for the next stage of
development. Even the World Bank, a
strong supporter, noted in a quietly
shelved report that foreign direct
investment was lagging.
Mr Kagame says his government is
taking a calculated gamble, much as he
has done in politics, in pursuing what he
calls an integrated strategy where, for
example, the airline feeds the tourism
sector and investments in alternative
sources of energy support manufactur-
ing ambitions. In any case, he says, I
dont see the alternative.
If Mr Kagame gives the impression
that everything is under control, more
than once during the interview he
betrays concern that things could
unravel. The problem, he says of who
might succeed him, is preventing some-
one from bringing down what we have
built. Above all, he says, he wants to
avoid leaving behind a mess.
Transcript The president insists it was never his
David Pilling and intention to stay on, but the party and
Lionel Barbers population insisted. We are not saying,
full interview
with the We want you forever until you drop
Rwandan leader dead, he says, imitating the voice of the
people. Were only saying, Give us
ft.com/africa
more time.
Monday 28 August 2017
MONDAY 28 AUGUST 2017
A lawless sheriff absolved
by a feckless president
Trumps sop to his base undercuts the judiciary and his partys future
Joe Arpaio rose to fame by placing him-
self above the laws of his country. His
24 years as the Sheriff of Maricopa
County, Arizona, were marked by the
abuse of suspects rights and by tireless
self-promotion. Americas toughest
sheriff, as he styled himself, set up an
outdoor jail in which prisoners, many
of them still to be tried, sweltered in the
desert heat. In 2008, a judge found con-
ditions in Maricopa countys other jails
so cruel as to be unconstitutional. The
sheriff also had a penchant for stunts
such as showing prisoners on public
webcams, or sending a deputy to
Hawaii to look into President Obamas
birth certificate. Above all, he chased
and detained, in much-hyped posses,
anyone who he thought might be in the
country illegally.
This led to frequent run-ins with fed-
eral authorities, often leaving Mar-
icopa County taxpayers with big settle-
ments or fines to pay. In 2011, a federal
judge ordered the then-sheriff to stop
detaining people only on suspicion that
they were in the country illegally. In
2013 the same judge, a George W Bush
appointee, specifically forbade the
sheriffs office from targeting Latinos.
Mr Arpaio did not think much of the
judges orders: last month, he was
found guilty of contempt of court for f response, and only a fifth disapproved.
failing to follow them. The defence
argued that the former sheriff had not
wilfully defied the orders because he
had deferred their enforcement to dep-
uties, and that in any case state and fed-
eral law gave him authority to detain
immigrants. But he had bragged about
ignoring the rulings in the press, and it
is not a sheriffs job to interpret laws.
Under the US constitution, that is what
judges do.
Last week, before Mr Arpaio could be
sentenced or his appeal heard, Presi-
dent Donald Trump pardoned him,
saying that he had been convicted for
doing his job. The presidency comes
Labour pushes Brexit
politics towards realism
To avoid a cliff, Britain will have to accept EU rules during transition
The Labour partys announcement
that it wants the UK to remain within
all the EUs economic structures in the
years right after Brexit is the best news
to come out of British politics in a long
time. It represents, more than a year
after the referendum, the first major-
party initiative that categorically
renounces unrealistic hopes for a quick
and easy divorce or a bespoke transi-
tion deal. Instead it grapples with the
economic realities of leaving the EU.
The announcement puts Labour
many steps ahead of the Conservatives.
The Tories constructive ambiguity not. That said, whatever the motiva-
has long looked much more like a fail-
ure to make up its own mind. Only this
summer has the government tiptoed
towards to a more rational position,
acknowledging the need to avoid a
cliff edge separation.
Philip Hammond and the Treasury
have won the argument that a transi-
tion period will be needed after the UK
formally leaves in March 2019. The
government has also shifted its line on
a role for the European Court of Justice,
and Whitehall has signalled it wants to
replicate the arrangements of the
present customs union. Most impor-
tantly, Prime Minister Theresa May has
dropped the self-destructive threat to
walk away from negotiations without a
deal.
Labour has simply taken these posi-
tions to their logical conclusion. To
avoid the cliff, Britain will have to abide
by all the EU rules while a new relation-
ship is established. That means accept-
ing EU regulations, free movement,
and ECJ jurisdiction, and precludes
separate trade agreements. It also
undoubtedly means continued finan-
cial contributions to Brussels; the EU27
have made the money a priority. There
is no other way to ensure that busi-
nesses and workers in the UK will be
spared serious disruption and, most
importantly, to avoid the reimposition
with virtually unlimited power to par-
don, and this was not the first unjust
exercise of that privilege. What makes
Mr Trumps action stand out is that it
rewards a law enforcement official for
openly defying the judiciary. This is an
attack on the separation of powers, a
bedrock principle of the American sys-
tem. The country is left to wonder how
Mr Trump will next deploy his
immense authority. The questions are
the more pressing given that Trump
aides are under FBI investigation.
From Mr Trumps narrow perspec-
tive, the pardon remains excellent poli-
tics. His core supporters approve heart-
ily of Mr Arpaio. When Mr Trump inti-
mated at a rally in Phoenix that he
would evade punishment, the idea was
met with raucous cheers. The presi-
dents comments after the Charlottes-
ville hate rally were only the latest
example of what is now unquestiona-
bly a fundamental Trump strategy:
stirring up white resentment. It ener-
gises his diehard fans while doing him
only modest harm with the broader
swaths who voted for him. After Mr
Trump said that fine people had
marched with the neo-Nazis in Vir-
ginia, polls found that majorities of
Republicans approved of Mr Trumps
Many Republicans and conserva-
tives reject Trumpism. Indeed, the
party establishment had sought to
bring Latinos into the partys conserva-
tive coalition. Given many Latinos
right-leaning social views, this makes
sense. How much long-term damage
Mr Trump has done to his partys rela-
tionship with this important American
group is unclear. Latinos may well dis-
tinguish between Mr Trump and his
party, and between conservatism and
nationalism. Other Republicans will do
their party a service if they make that
distinction clear by distancing them-
selves from this reckless president.
of a hard border on the island of Ire-
land.
It is paradoxical that this outbreak of
Burkean common sense should have
come from an opposition led by a revo-
lutionary throwback such as Jeremy
Corbyn. Mr Corbyn is still hostile to
Europe. His motivation is likely to put
clear blue water between himself and
Mrs May and mark himself out as a
realist. Labour remains unwilling to
spell out the relationship it wants once
the transition is over. It might aim to
stay in the single market or it might
tion, the Labour shift puts it firmly on
the side of business and challenges the
government to go still further along the
road to pragmatism.
It is quite possible that the govern-
ment will end up on the same page as
Mr Corbyn and Keir Starmer, the
shadow Brexit secretary, and will nego-
tiate a transition period that lasts a few
years. If so, Labour will have done Brit-
ain a service by forcing its politicians to
grow up. If the Conservatives do not
take this opportunity to accept the
realities of Brexit, the consequences
could be severe. Continued indecision
from a governing party lacking a par-
liamentary majority can only increase
the likelihood of its demise.
The result could be a Corbyn govern-
ment, which could have painful conse-
quences for business and the economy
that reach far beyond Brexit.
There remains much work to be
done. The Labour proposal is best
thought of as a standstill agreement
that will hold until bigger choices can
be made. It is not a long-term solution.
For the UK to live permanently by all
the EUs market and customs rules
without any say in shaping them would
be intolerable. But the proposal gives
both parties, and both Remainers and
Brexiters, a firm and realistic platform
on which to build.
FINANCIAL TIMES
Too-simple conclusions on counter-terrorism
Sir, Jais Mehaji (Letters, August 24)
praises Morocco for its valuable
counter-terrorism abilities. While I do
not disagree with the overall thrust of
his argument, Mr Mehaji is incorrect
when he claims that Morocco has not
had a major terrorist attack since
2003. I visited Marrakesh just days
after a bomb explosion killed 17 people
in Djemaa el-Fna square in April 2011.
Unlike some others,
Trump is honouring his
mandate from the voters
Sir, To people of goodwill everywhere,
your increasingly critical editorials of
late on the American administration
and President Donald Trump in
particular tend to be exaggerated; as,
for example, in Americas
establishment steps off the Trump
train (August 18) and Tax reform
should be for the US, not the president
(August 22). And on your front page of
August 23, on next months German
elections, your headline reads Merkel
under fire for failing to defy Trump.
Would this suggest that everyone is
expected to do so?
It seems hardly realistic to describe
the US administration as a wreck
adrift on high political seas and to
deride a major tax reform effort as its
chosen life raft. Why the antagonism
towards so fundamental a prospect
clearly aiming to benefit all Americans?
Somewhat hastily concluding, too, that
the Oval Office will remain isolated,
aimless and ineffective until it has a
new occupant.
Also, considering Mr Trumps very
transparent commitment to help unify
the country before, during and after
the recent riotous and shamefully
divisive rally in Virginia whence the
other accusation here of moral
bankruptcy?
Unlike perhaps some of his
predecessors, Mr Trump fully honours,
as he should, a mandate from the tens
of millions who elected him to
implement their shared vision of a
restructured and adequately
reoriented US government capable in
todays circumstances of delivering a
prosperous and certainly united
America in a safer and better world.
Most of the worlds defiant media
apparently remain unaware that as
happened during last years campaign
period they are again creating a great
popular backlash, probably keeping
President Trump firmly in the Oval
Office for an additional four years: to
finish his job on behalf of the American
people.
Nicos Devletoglou
Professor Emeritus of Economics,
University of Athens, Greece
Space shuttles failure
rate put into perspective
Sir, Lord Rees of Trinity College
(Letters, August 24) is entirely too
sanguine with respect to the space
shuttle failure rate of less than 2 per
cent. To put this number into proper
perspective, if one were to apply the
same rate of fatality while driving ones
car twice a day, the average driver
could expect to die seven times each
year.
Guy Wroble
Denver, CO, US
Chinas quest to
catch up with
the west
Book review
Henry Sanderson
Sellout
Sellout, How Was
Washington
Gave Away Americas
Technological Soul, and
One Mans Fight to Bring
It Home
by Victoria Bruce
Bloomsbury $28
Letters
Even when one is dealing with the
correct facts, it is not always wise to
draw seductively simple conclusions
about the efficacy of a countrys
counter-terrorism strategy from the
absence of attacks during a given
period. As recently as February this
year, it would have been possible to
argue that the UKs strategy to counter
Islamist terrorism was working very
Djemaa el-Fna, Marrakesh, where a bomb exploded in April 2011 Getty Images
Military plans look
likely to proliferate
Sir, The Big Read article Exporting the
spoils of war (August 25), about Isis
continuing to profit despite its
declining position in Iraq brought to
mind candidate Trumps declarations
that he would destroy Isis very quickly
by bombing the hell out of them and
other versions of the same strategy. As
president, Donald Trump has asked
the defence department every month
to come up with a new military plan to
destroy Isis. Despite plenty of
bombings, it sure seems well be having
lots of military plans before Isis and its
various embodiments are finished off.
Arnold Holtzman
Wilmington, DE, US
The backdoor access
problem is unsolvable
Sir, Patrick Jenkins concludes
(Financial criminals, like terrorists,
can hide behind WhatsApp, Inside
Business, August 22) that messaging
companies should grant regulators
some kind of backdoor access to
encrypted information.
Information technology systems
being what they are, and large
organisations government or not
being what they are, there is no known
way to grant some kind of backdoor
access just to regulators, police and
local secret services. If there is any kind
of back door, it will be accessible to all
sufficiently motivated organisations
and maybe even individuals. Experts
largely agree (I know of no exception)
that this is an unsolvable problem. So
Mr Jenkins proposal amounts to
asking that messaging companies
should grant regulators, the secret
services of the US, Russia and China,
the Anonymous hacker collective, and
others some kind of backdoor access to
encrypted information.
Considering the pros and cons, that
proposal might or might not still be
viewed as a worthwhile compromise; I
can imagine reasonable people to
For those who have long warned about
a growing US dependence on Chinese
supply chains, Donald Trump is their
moment in the sun. Last month the US
president ordered a review of the
countrys defence supply chain,
claiming it faced gaps due to a loss of
manufacturing jobs over the past
decade. Only one company in the US
can now repair propellers for Navy
submarines, his administration said.
Rare earths, 17 elements that are
used in magnets for wind turbines and
electric-vehicle motors, as well as in
military lasers and missiles, are core to
the debate, since China has an almost
complete monopoly over their supply.
The Middle East has oil, China has
rare earths, former leader Deng
Xiaoping declared in 1992.
Sellout tells the story of how China
has used its rare earth monopoly to
capture the broader technological
supply chain in order to get a tight
grip on the beating heart of American
enterprise. For Victoria Bruce,
globalisation has put America at risk
and made the country vulnerable.
The book argues that the US
willingly offered up its technology,
starting in the free-market heyday of
the 1990s as one multinational
corporation after another moved into
China, believing they would have
access to its growing domestic market.
China realised it could obtain foreign
military and industrial technology by
buying it, licensing it or forcing foreign
companies to do joint ventures.
Then China turned the screws on
foreign companies by cutting them out
well given that the country had not
suffered a major attack since the 7/7
bombings in 2005. Barely six months
later, and we are all painfully aware of
the superficial and transient nature of
this argument.
Sen Smith
Senior West Africa Security Analyst,
Verisk Maplecroft,
London EC2, UK
honestly disagree on this. But simply
failing to mention the downsides and
weigh them against any suspected
advantages does not a thoughtful
proposal make. Just as in many other
areas, it is not possible to have ones
cake and eat it, too the cake here
being secure communications.
Jan Barth
Kiel, Germany
There must not be double
standards on rule of law
Sir, Further to your editorial Hong
Kong presents a test of Chinas good
faith (August 21): I want to make the
following points with regard to the rule
of law.
First, Hong Kongs rule of law
ensures its citizens full rights to
freedom. But this does not mean that
illegal acts such as violence in the name
of democracy or freedom can be ups in recent years. In my view, this is
tolerated. Joshua Wong and two others
are behind bars not for exercising their
rights to free assembly, protest or
speech, but for violating the law in
Hong Kong. The review and ruling by
Hong Kongs court of appeal with
regard to these individuals was based
on facts and laws, and it is beyond
reproach. To call the court decision a
clampdown is most irresponsible.
Second, abiding by judicial verdict is
key to the spirit of the rule of law which
must be upheld regardless of whom the
verdict is applied to or where it is
applied. There must not be double
standards.
Third, 20 years after Hong Kongs
return to China, the one country, two
systems policy has been widely
recognised as a success and the
legendary prosperity of Hong Kong
continues. Hong Kong is not, as you
claim, testing Chinas good faith.
Rather, Hong Kong is presenting a test
of the pride and prejudice of those
who are denying it an objective and fair
take on its progress.
Zeng Rong
Spokesman,
Chinese Embassy in the UK
of government contracts. Its domestic
companies, and often those with links
to Communist party leaders, got very
rich. The book details the example of
former president Jiang Zemins son,
who it alleges pioneered a thorium-
based nuclear reactor after an
approved visit to the US Oak Ridge
laboratory where the technology had
been developed decades earlier.
Sellout aims to provide validity to
the Trump administrations concerns
over China. It details kkey examples of
US capitulation. These include
Magnequench, a company that began
as part of General Motors, which in the
1980s commercialised a new powerful
rare earth magnet. These magnets
helped usher in a technological
revolution at breakneck speed. In
1995 Magnequench was purchased by
two sons-in-law of Deng Xiaoping. It
was supposed to stay in Indiana but
later moved its technology to China.
Ms Bruce lays the blame on a
Washington in thrall to the free
market, which relaxed controls on
exports of sensitive technology.
Interweaved with this narrative is
the books main character Jim
Kennedy, your perfect hard-drinking
Irish-American. He becomes aware of
Chinas rare earth monopoly after he
buys an iron ore mine that has
substantial deposits of rare earths.
That sets him on a crusade to
Washington.
His solution is a rare earth co-
operative to be funded, owned and
operated by end users giant
companies such as Boeing and Apple.
7
Email: letters.editor@ft.com
Fax: +44 (0) 20 7979 7790
Include daytime telephone number and full address
Corrections: corrections@ft.com
Whitehalls stop-go
machine frustrates UK
infrastructure projects
Sir, Three cheers for your editorial
UKs ailing infrastructure can no
longer be ignored (August 23).
Business communities across Britain
remain frustrated that successive
governments say a lot but deliver
comparatively little when it comes to
enhancing connectivity and the UKs
energy security. Infrastructure projects
in Britain take too long, and cost too
much, because of the relentless stop-go
judder of the Whitehall machine. The
short-termism of British politics and
policymaking needs to be excised from
the way we choose, plan and deliver
key infrastructure projects once and
for all.
So, too, does the states reluctance to
spend, upfront, to get the job done.
Other countries have proven far more
willing to prioritise infrastructure and
borrow to deliver investments whose
benefits will last decades. Markets have
been more than willing to let them do
so without sky-high interest rates. A
long-term approach and a bigger
upfront funding commitment from the
state would enable faster delivery of
large and small projects alike, in all
regions of the UK to the benefit of
businesses, consumers and the
exchequer. It would crowd in more
private sector money, too, a goal that
has been eluding Westminster for
decades.
Being 24th best in the world
infrastructure rankings is no recipe for
post-Brexit success. The time to act,
boldly, is now.
Dr Adam Marshall
Director-general,
British Chambers of Commerce
The fintech space is
generating real innovation
Sir, Matthew Vincent is correct in his
observation that fintech covers an
increasingly broad church of financial
digital services (A fintech-nicality,
Lombard, August 22). However, in
contrast to Mr Vincents view, surely
this diversity should be a cause for
celebration, rather than cynicism. As
he notes, PwC estimates that investors
have invested billions in fintech start-
due to the fact that investors recognise
that real innovation and opportunity is
being generated in the fintech space. It
is not due to a muddied definition of
what fintech actually is.
This investment is something to be
encouraged and promoted, particularly
in the UK where, in the face of Brexit
uncertainty, confidence of the UKs
entrepreneur community remains high
and robust. A number of our largest
and most active tech companies began
as the great ideas of promising
entrepreneurs. We should actively
encourage and support the
continuation of this large volume of
investment into fintech, so that this
entrepreneur talent pool can be
nurtured.
Rob Sumroy
Partner and Co-head of Fintech,
Slaughter and May,
London EC1, UK
COMMENT ON FT.COM
Larry Summers blog
Jackson Hole: why there is no case for a
further rate increase
www.ft.com/larrysummers
Its a model we are told worked for the
US semiconductor industry when it
faced tough competition from Japan.
Fond of cowboy boots, Mr Kennedy is
presented as a self-taught outsider
challenging the reckless American
government on the dangers of China.
The book makes some powerful
arguments about how China obtained
foreign technology and caught up with
the west. But Sellout ffails to make a full
case for Mr Kennedys ideas. For the
military, having supply of these
strategic rare earths makes sense. But
is a homegrown supply necessary? The
book does not explain how having
access to the raw materials would spur
a technological renaissance.
It is also let down by its central
character who starts with promise but
never manages to escalate the fight
of the title. Ms Bruce tries to paint Mr
Kennedy and his lobbying sidekicks as
superheroes as they walk the marble
hallways of Washington but it is an
image that fails to resonate.
And while the author is compelling
on Chinas strategic motives, the book
lacks nuance. Many foreign companies
were willing to hand over technology
because they believed they could
innovate faster at home. Nor has the
US fallen out of the race. This is the
country that a saw the Tesla Model 3 roll
off the production line last month, a
mass-market electric car coveted in
China. America may not have lost its
technological soul just yet.
The writer is the FTs commodities
correspondent
8 FINANCIAL TIMES Monday 28 August 2017
Monday 28 August 2017
Labour exposes the false promises of Britains exit
OPINION
Peter
Mandelson
T
he Labour party announce-
ment that it will now sup-
port staying in the single
market when Britain leaves
the EU is a significant move.
It frees the UKs main opposition party
from its submissiveness and potentially
opens the way to a different Brexit out-
come. The question is whether Labours
commitment will hold and succeed in
creating a head of steam in parliament.
Most importantly the move exposes
the sheer impracticality and lack of
grasp by Theresa Mays government in
imagining that Britain, having left the
single market and customs union in
March 2019, could negotiate by then an
alternative transitional deal with the EU
as a precursor to negotiating a further
bespoke relationship in the years to
come. What it wants will not be on offer
from Brussels and in its present political
Big Tech can no longer police itself
business
Rana
Foroohar
I
n the early days of the commercial
internet, back in the mid 1990s, one
of the things that technology plat-
form companies lobbied hard for
was the notion that they were like
the town square passive conduits for
the actions of others, facilitating a vari-
ety of activities and thoughts, but not
responsible for any of them. The idea
was that the garage entrepreneurs start-
ing message boards and chat rooms, or
the nascent search engines, simply did
not have the legal or economic band-
width to monitor or be liable for the
actions of users, and that to require
them to do so would stymie the develop-
ment of the internet itself.
How times have changed. Not only
can the largest internet companies like
Facebook and Google monitor nearly
everything we do, they are also policing
the net with increasing vigour. Witness
the variety of actions taken by Face-
book, Google, GoDaddy and PayPal, in
the wake of racially charged violence in
Charlottesville, to block or ban right-
wing hate groups from their platforms.
You can argue that this is laudable, or
not, depending on your relative concern
about hate speech versus free speech.
But theres a key business issue that has
been missed in all the hoopla. It is one
that was summarised well by Matthew
Prince, the chief executive of Cloud-
flare, a web-infrastructure company
that dropped the rightwing Daily
Stormer website as a client, under mas-
sive public pressure and against the
firms own stated policies. I woke up in
a bad mood and decided someone
shouldnt be allowed on the internet,
said Mr Prince following the decision.
No one should have that power.
Powerful tech companies do. Yet they
also continue to benefit, in the US at
Brexit still poses a threat to long-term European unity
europe
Wolfgang
Mnchau
B
rexit has not yet found any
imitators. The real threat to
the cohesion of the EU, posed
by the UKs vote to quit, was
always more likely to come
over time rather than immediately.
The Brexit referendum was preceded
by a long process of political alienation
between the UK and the EU, which had
its origins in the 1980s and early 1990s.
The same process is now under way in
some other European countries, albeit
for different reasons. Euroscepticism
has been on the rise in Greece which
has been in a state of permanent depres-
sion thanks to the eurozones crisis man-
agement and Italy, where the econ-
straitjacket the UK government would
be incapable of negotiating it anyway.
It would, in any case, prolong the
uncertainty for businesses, which
would have to adjust not once but twice
to changes in their export and import
arrangements in their biggest market. It
would create a raft of complex and
expensive new customs procedures to
replace the existing frictionless trade we
have in place. And, because the EU will
never offer equivalent terms to those we
have at the moment in the single mar-
ket, Britain would end up paying
through the nose for an inferior
arrangement that would then be
replaced by an equally suboptimal one.
That is what leaving the single market
would mean and therefore Labour is
right to say that the starting point
should be to stay in it for the foreseeable
future and take time in working out
what, if anything, would be acceptable
to replace our present membership.
The Labour shift also exposes the
false promise of the government that, in
the words of David Davis, Britains chief
Brexit negotiator, Britain will have the
exact same benefits in European trade
least, from laws that treat them as spe-
cial and allow them to get around all
sorts of legal issues that companies in
every other kind of business have to
grapple with. This amounts to billions of
dollars in corporate subsidies to the
worlds most powerful industry.
The golden goose is a little-known bit
of Federal Trade Commission legisla-
tion. Section 230 of the Communica-
tions and Decency Act (CDA) was
crafted in 1996 to allow tech firms
exemption from liability for nearly all
kinds of illegal content or actions perpe-
trated by their users (there are a few
small carveouts for things like copyright
violations and rare federal criminal
prosecutions). In recent years, the tech
industry has thrown a tremendous
amount of money and effort into ensur-
ing that it maintains section 230 as a
get out of jail free card.
But this law is being challenged by
Companies have the power
to fan the flames of fake
news and also to remove it
when and where they like
powerful politicians. On August 1, a
bipartisan group of senators, led by
Democrat Claire McCaskill and Republi-
can Rob Portman, introduced legisla-
tion that would create a carve-out in
section 230 for tech firms that know-
ingly facilitate sex trafficking. The
impetus for this was the horror of back-
page.com, a firm that actively created a
platform for online sex trafficking for its
own profit.
It is a piece of legislation that every-
one, it seems, can get behind except
the largest tech companies and their
industry lobbying groups . They are con-
cerned that it would open a Pandoras
box of legal issues for them. These
groups had the rough copy of the bill for
months before its introduction, yet
refused to offer edits during its crafting.
Keith Smith, a spokesperson in Mr Port-
mans office, says: We did our due dili-
omy has performed dismally since join-
ing the single currency. The entire polit-
ical system in Italy is now rebelling.
Matteo Renzi, the former prime minis-
ter and general secretary of the centre-
left Democratic party, wants the EU to
dump some of its fiscal rules. Silvio Ber-
lusconi, another former prime minister
and leader of the centre-right Forza Ita-
lia, wants a parallel currency. Others are
demanding a referendum on euro mem-
bership or even complete withdrawal.
Poland and Hungary, both run by
ultra-right governments, have also been
distancing themselves from the main-
stream. The EU has launched a sanc-
tions procedure against Poland in pro-
test at reforms that would leave the gov-
ernment largely in control of the judici-
ary. Listening to Viktor Orban, the
Hungarian prime minister, one wonders
how long his country will want to stay in
the EU. When Hungary ceases to be a
net beneficiary of EU funds, his Euro-
scepticism may no longer be tempered
by financial considerations. Once the
FINANCIAL TIMES
Comment
that it has now. The only basis on which
this might ever be possible is for Britain
to remain in the single market and the
customs union, rejection of which is the
only thing that unites the Cabinet.
It could have been different if Mrs
May had from day one made the more
honest and serious proposition to leave
the EU but retain a very important foot
in the tent. Alive to this possibility, the
It is now possible to
construct a mutually
beneficial long-term
partnership with the EU
Brexiters and their media supporters
immediately sent up a pre-emptive cry
of betrayal. Mrs May took fright and
went instead with the swim of hardline
Brexit opinion.
At the time, Labours front bench did
not stand in the way. By reversing that
position, Labour has created an oppor-
tunity for Britain to avoid inflicting on
itself the economic costs inherent in the
UK leaves and stops contributing to the
EU budget, the assessment of the pros
and cons of EU membership, especially
by non-eurozone countries, will change.
The UK, Italy, Greece, Poland and
Hungary may have different reasons to
be disillusioned with the EU, but one
unifying theme is variable geometry a
notion that became popular in the
Once Britain actually
leaves, the assessment of
the pros and cons of EU
membership will change
1990s, denoting integration at different
speeds. As it turned out, the eurozone is
not a club within a club, as some pro-Eu-
ropeans in the UK naively thought. Over
time, interests diverge in many areas.
Within the eurozone free movement of
labour is needed as a partial offset to
economic imbalances. Yet what is
governments chosen path. But revers-
ing this depends on what others in par-
liament do, including those on the Tory
benches who know the risks of turning a
crisis into an economic calamity. Given
Labours neutral stance to date, there
had not been a chance to take a mean-
ingful stand against it. Until now.
Instead of using a transitional period
merely to postpone the inevitable cliff
edge following departure from the EU,
as Philip Hammond, the chancellor, and
Liam Fox, the international trade secre-
tary, say they agree on, it is now possible
to maintain the stability of the status
quo, as Labour is proposing, while con-
structing a mutually beneficial long-
term partnership with the EU.
This will buy much needed time but it
will not remove Britains difficult
choices, at the heart of which is that any-
thing that approximates to the same
trade in goods and services we have at
present in Europe will bring with it
broadly the same conditions, rules and
legal demands that exist now except
without the same influence over them
once we leave the EU.
For Brexiters who do not care about
industry simply does not have the abil-
the extent such providers operate as
and eat it too.
rana.foroohar@ft.com
known inside the eurozone as freedom
of movement is considered in the UK as
immigration. Inevitably conflicts
between a dominant eurozone and a
weaker and disaffected fringe will
become more acute.
Another reason why there is no rush
for the exit is the lack of clarity over
Brexit. We do not yet know the precise
nature of the exit agreement. Nor can
we be sure of its economic impact. A
long transition leading to a comprehen-
sive trade deal the most likely sce-
nario would minimise the costs.
If it becomes clear that leaving does
not necessarily trigger an economic cri-
sis, other countries may feel less inhib-
ited. Brexit could set a precedent for fur-
ther exit agreements under Article 50 of
the Lisbon treaty as an EU exit comes to
be seen as a less scary prospect. That
assessment will obviously be different if
Brexit were to lead to an economic mess.
Over the next few years I expect the
EU to make another attempt to shift
power from the national level to the cen-
the economic costs, because for them
taking back control is more impor-
tant, the conundrum is easily solved
just leave and let the future look after
itself. Yet for Labour, and those in other
parties who care about jobs and the con-
sequences for the less-protected in soci-
ety, the dilemma is more acute. They
want to prioritise the economy but
worry about becoming in effect a satel-
lite jurisdiction of the EU.
This is particularly irksome to many
City interests and some prominent fig-
ures in the Bank of England who want
free passage of services into Europe but
want to retain regulatory autonomy as
well. But it is the price of leaving the EU
without foregoing much of our trade.
Labour has done parliament and the
public a big favour in starting what will
be a complicated debate. It should con-
tinue it with this autumns EU with-
drawal bill by establishing the clear
principle that Britain should not decide
to leave the EU and its single market
until it knows just where it is leaving to.
The writer is a former UK cabinet minister
and EU trade commissioner
gence, met with the tech community on
a bipartisan basis for months and yet
they offered no constructive feedback.
The firms say that is because any
amendment to 230 is a no-go; they sug-
gested alternatives like tougher crimi-
nal laws. Noah Theran, a spokesperson
for the Internet Association, a trade
group that represents companies such
as Google and Facebook, says: The
entire internet industry wants to end
human trafficking. But, there are ways
to do this without amending a law foun-
dational to legitimate internet services.
Still, Big Tech itself realises the cogni-
tive dissonance involved in censoring
online activity while continuing to por-
tray itself as the town square. See, for
example, the recent Electronic Frontier
Foundation statement fretting about
the slippery slope of censorship. The
ity, or the right, to self-police any longer.
In a world where Big Tech has the power
not only to fan the flames of hate speech
and fake news, but also remove it when
and where it likes, it is clear that the
internet is a fundamentally different
place than it was in 1996 one that
needs fundamentally different rules.
The conversation about what those
rules should look like is heating up.
Olivier Sylvain, an associate professor of
law at Fordham University, notes that as
the business model and power of tech-
nology change and grow, so too should
the law.
The concept of immunity in 230 as
originally conceived is no longer rele-
vant in a world in which the largest tech
firms are engineering an environment
in which they can extract all kinds of
information about users for their own
profit, says Prof Sylvain. He recently
proposed that the CDA be recrafted to
shield providers from liability for
third-party user online conduct only to
baseline of some oversimplified eco-
true passive conduits.
Regulators and politicians, take note:
Big Tech should no longer have its cake
tre in a number of areas, notably the
governance of the eurozone, driven by
the agenda of Emmanuel Macron, the
French president, rather than by Brexit.
I am fairly confident that France and
Germany will agree on a reform, but one
that will be very much based on German
ideas for a more powerful European Sta-
bility Mechanism, the eurozones bail-
out fund, and stricter supervision of
national fiscal policies, tempered by
some token concessions to Paris. The
changes may bring France and Ger-
many closer together politically, but
they may drive Italy further away.
As for the non-eurozone countries, I
would not be surprised if they were
starting to question the value of a union
that is likely to bring fewer material
financial benefits in the future and that
is run primarily in the interest of the
eurozone. The EU is not bound to break
up, but it would be foolish to assert that
Brexit implies the opposite.
munchau@eurointelligence.com
9
What would a
Cohn-led
Federal Reserve
look like?
OPINION
Jason
Cummins
I
n the wake of the weekends Jack-
son Hole conference, where Federal
Reserve chair Janet Yellen
defended the core regulatory archi-
tecture put in place after the finan-
cial crisis, the markets attention will
start to turn to who President Donald
Trump may appoint to replace her. By
most accounts, Gary Cohn, the head of
the National Economic Council, is the
frontrunner. If he were to take over
what should the markets expect?
In a detailed interview with the Finan-
cial Times on Friday, Mr Cohn described
his major push for tax reform for
households and businesses. Those
efforts highlight his willingness to work
with Congress, an important qualifica-
tion that some previous Fed chairs have
found challenging. That relationship is
critical, so much so that Ben Bernanke,
Fed chairman during the crisis, declared
in his final press conference in 2013 that
Congress is our boss.
In addition to Mr Cohns views on tax
reform and deregulation, though, it is
possible to make some educated guesses
about what his tenure would look like
should he ever take up residency at the
Fed. Like President Trump, Mr Cohn is a
self-avowed backer of low interest rates.
He is also no fan of a strong US dollar,
unlike another former Goldman Sachs
boss turned NEC chair, Robert Rubin.
Mr Cohns Wall Street roots would also
surely align his instincts with stock mar-
ket bulls.
Putting these three ingredients
together low interest rates, a weak US
dollar, and strong stock market we
can use the Feds own macroeconomic
model to predict the impact a Cohn Fed
might have on the economy.
Let us imagine a scenario where Mr
Cohn leaves unchanged the central
banks federal funds rate over the next
two years. Then assume that the
exchange value of the US dollar falls 10
per cent to 2014 levels and the stock
market grows by 10 per cent, bringing it
He is no fan of a strong US
dollar and his Wall Street
roots would align him with
stock market bulls
further into record-setting territory.
Such assumptions seem reasonable,
perhaps even conservative. Yet the Feds
model says that a combination of that
kind would deliver real gross domestic
product growth of nearly 3 per cent a
year, a lower unemployment rate bot-
toming out at a multi-decade low of 3.5
per cent and higher inflation rising
above the Feds 2 per cent target. That is
before the possible beneficial effects of
tax reform and deregulation.
For the markets, what is there not to
like?
But Fed chairs are not judged by the
nomic model. It also matters whether
they know what to do when there are
severe shocks to that economy. In the
event of a recession, a future Chairman
Cohn could draw on the considerable
expertise built during the Bernanke and
Yellen terms. Based on their playbooks,
he would likely be successful in avoiding
a disastrous liquidity trap and steering
the economy to safety.
But what if the economy overheats?
The rate of unemployment may be
below the 4.5 to 5 per cent range that
Fed policymakers estimate, but proba-
bly not much lower given the anecdotes
about tight labour markets. In the past,
the Fed has been unable to achieve per-
manently below-target unemployment
without stoking inflationary pressures.
Mr Cohn, or whoever Mr Trump
appoints, would be well served in fol-
lowing the advice of another former Fed
chairman William Martin, who said the
role of a central banker is to take away
the punch bowl just as the party gets
going.
Unfortunately, he did not follow his
own advice in the late 1960s, falling
under the spell of President Lyndon B
Johnson, who demanded loyalty to fund
his spending on social programmes and
the Vietnam war. The subsequent infla-
tion should remind markets that while
there is ample mental muscle memory
for avoiding deflation, an under-appre-
ciated risk is that the next Fed chair
could miss the warning signs about
inflation until it is too late.
The writer is chief US economist at Brevan
Howard
10
Theatre director Benedict
Andrews first film takes him
into new, distressing territory.
He talks to Sarah Hemming
T
here arent many happy
couples dotted through
Benedict Andrews work. A
quick scan of the award-
winning Australian direc-
tors recent stage productions throws up
the blood-soaked Macbeths, Euripides
tormented Medea and her faithless hus-
band Jason, and Maggie and Brick, who
are currently tearing strips off each
other in Andrews blistering staging of
Tennessee Williams Cat on a Hot Tin
Roof in Londons West End.
Ray and Una, however, draw him into
new and distressing territory. This cou-
ple at the heart of Una, Andrews first
feature film (based on David Harrowers
stage play Blackbird), are yoked together
by events that happened some 15 years
before the audience meets them. When
Una was 13, Ray, then in his 30s, per-
suaded her to run away with him.
Its an incredibly difficult subject to
approach, camera in hand. Moreover,
Harrowers original script seems
defiantly uncinematic: it basically con-
sists of two people arguing in a small
room. Andrews is celebrated for his raw,
exhilaratingly physical theatre (Jack
OConnells Brick, in Cat on a Hot Tin
Roof, for example, spends much of the
play naked under a shower; his 2012
Young Vic staging of A Streetcar Named
Desire featured a revolving set) and for
the dazzling confidence with which he
tears classic plays from their original
settings and rehouses them in new,
allegorical spaces. All the more surpris-
ing, then, to find him choosing this pre-
cise, intensely focused chamber drama
for his much-anticipated debut on the
big screen.
Its like a verbal boxing match in the
theatre, he agrees, good-naturedly, set-
tling on to a settee with a cup of tea. Its
incredibly rhetorical and the audience is
put into a position where theyre like a
jury weighing up whats true. Thats
something very specific to the theatre;
thats not the space of the cinema. What
fascinated me was the encounter
between these two people and every-
thing thats been unspoken for 15 years.
How could the camera explore that in a
way that the stage cant?
Andrews directed the play at the
Journey into a troubling space
Above: Rooney Mara and Ben
Mendelsohn in Una. Below: Benedict
Andrews. Below right: Jack OConnell
in Cat on a Hot Tin Roof Saga Sig
FINANCIAL TIMES
ARTS
Berlin Schaubhne in 2005 and was
clear from the outset that he didnt want
to make filmed theatre.
I can go and watch NT Live and thats challenge in translating the story to
a recording of a theatre production, he
says. Im not trying to do that here.
They have to be different: different
translations of that core mate-
rial . . . [Ingmar] Bergman as a theatre
director starting to make film is a great
role model. Every time he made a film,
he was interrogating What is cinema,
what can cinema be? And every time he
did a play he was asking, What is the
role of this play in the contemporary
world? Its the same enquiry across the
two different spaces but hes not trying
to mimic the theatre in the cinema or
vice versa. And thats a very important
touchstone for me.
In the play, Una has tracked Ray down
to his workplace and we are, in essence,
trapped in the room with them as she
confronts him. The physical sense
of claustrophobia is crucial to the
theatre audiences understanding of
the emotional prison in which Una
still lives. Andrews explains that his
not only by focusing closely on facial
film was to open the story out, to
switch between past and present and
introduce other characters without
losing that intensity.
The emphasis is shifted from that
boxing match in an empty room to fol-
lowing Una in pursuit of trying to
reclaim her life, he says. The Kubrick-
ian idea of the labyrinth was one of the
ways into that. The film plays out as a
labyrinth: the woman walking through
the various rooms of the factory,
through the rooms of his house, through
a tunnel . . . That was my exploration of
what an allegorical, but real, space felt
like on screen.
His film follows Una through the land-
scape, but the camera focus, the mini-
mal dialogue, and Rooney Maras
haunted performance all highlight her
sense of separation from the events
Inside the mind of an online hater
PODCASTS
Fiona
Sturges
At its best, social media is a democratic
platform where friendships can be
forged, ideas exchanged and cat memes
proudly shared. It can also be a place
where abuse is rife and bullies lob their
140-character grenades safe in the
knowledge that they wont have to face
any consequences or argue their case.
Well, not always. The New York-based
writer, actor and video-maker Dylan
Marron has launched a new podcast,
Conversations With People Who Hate Me,
in which he calls his online harassers for
a chat. This is the first non-fiction show
from Night Vale Presents, the network
behind the paranormal series Welcome
to Night Vale, in which Marron has
previously appeared. Nowadays his
time is mostly spent making comic
videos about social justice that attract a
steady stream of online criticism.
While the title of the podcast suggests
a seam of self-pity in its creator, it turns
out that Marron has a thick skin and
deals with his haters with little more
than a shrug. Clearly, this isnt about
revenge. Equally impressive are his
ability to persuade his detractors to be
interviewed and his gentle yet
inquisitive handling of them once he
JA Z Z
Beneath the Underdog:
Charles Mingus Revisited
BBC Proms, Royal Albert Hall, London
aaaee
Mike Hobart
Charles Minguss music pulsates with
inner torments and the pressures of liv-
ing under social duress. It is dense with
rich textures and rhythms that surge
from within. Played as conceived, his
work pushes emotions to extremes and
musicians to the limits of their tech-
nique and powers of expression.
This concert, named after Minguss
autobiography Beneath the Underdog,
smoothed the edges, substituted mood
for passion and transformed an expres-
sionist aesthetic into a series of engaging
set pieces. With rage conspicuously
absent, the evening hovered too close to
Mingus: the Musical for comfort.
around her. Where theatre can use
physical proximity, Andrews says, cin-
ema can find a different sort of intimacy
went camping and walking an experi-
expression but also by peering into a
characters thoughts and memories.
eye. Its this instinct that pulls him
presses record. The resulting series is
intriguing and, in its interactions,
frequently poignant.
In one episode he phones Chris, who
has called him, among other things, a
piece of shit online. In conversation
Chris tones down the vitriol and
apologises for the name-calling
(You caught me at a bad time). While
most of us would avoid the online
version of Chris, phone Chris is
charming and funny.
In the latest instalment Marron
contacts Matthew, a man from San
Francisco who, despite trolling Marron,
has been at the sharp end of online
abuse himself. Most surprising here is
how much the two have in common
they are young, gay, and have, in
different ways, devoted their careers to
liberal politics.
Rather than upbraid Matthew, or try
to bring him around to his way of
The orchestral scores, expertly played
by the Dutch Metropole Orchestra,
largely mixed bouncy big-band brass
with orchestral strings that veered from
the lush to the softly dissonant. Fables
of Faubus, which opened the second
half, turned a protest against segrega-
tion into a merry jaunt, while the ballad
Celia was reconfigured to sound like
Charlie Parker with strings. In contrast,
Goodbye Pork Pie Hat, a showcase for
guitarist Peter Tiehuis, resonated with
the delta blues, Boogie Stop Shuffle,
the evenings sprightly opener, had its
lines tweaked intriguingly, and the
beautiful melody of I x Love ended in a
buzz of alto sax.
The programme included the classi-
cally influenced Weird Nightmare
from 1947 as well as God Must be a
Boogie Man and The Dry Cleaner from
Des Moines, both written in collabora-
tion with Joni Mitchell in 1979, shortly
before Mingus died. These pieces, along
with a haunting Duke Ellingtons
Sound of Love, featured vocalist
Monday 28 August 2017
Cinema can articulate what we all
carry around in our heads, he says.
The way when we close our eyes we can
see what it was like to be on the beach
when we were a child. Unas story is
about the way those memories that
were locked away are coming back
and the way the past infiltrates the
present. The film asks the audience to
follow her into the very troubling space
she lives in.
It is, indeed, a very troubling space. At
one point in the story, Una attempts to
rekindle a relationship with Ray. I tell
Andrews that I found this distressing to
watch. He nods.
I want it to be troubling and not pro-
vide easy answers, he says. Some peo-
ple are upset that Ray is not portrayed
entirely as a monster. Its monstrous
what he did and completely unaccepta-
ble and the film works very hard to
never condone what happened. But
Unas experience is that she hasnt
recovered from it. It had meaning and it
has scarred her life but it is still the core
experience so far of her life. If we had an
easy answer about him we wouldnt
be recognising the complexity of her
emotional space. Thats what the film
is about.
[Child abuse] is a topic that needs to
be talked about, he adds. It was very
taboo for a long time. People are now
beginning to tell their stories. But the
film is not trying to say everything: I
didnt want to make an op-ed piece
about paedophilia.
Andrews was born in Adelaide
but now lives in Iceland, where he
goes to decompress. Following the
opening of Cat on a Hot Tin Roof he
ence he describes as offering a kind
of clearing.
The countrys stark and primal land-
scape, he says, encourages a sense of
perspective, and he has written about
the value of making yourself a stranger,
of seeing the familiar with an outsiders
towards characters on the edge.
Theyre all people going to bounda-
ries in themselves and in life, whether
by choice or not, he says. They go to a
point where they have a kind of moment
of revelation. I am interested in charac-
ters who we follow to a place where they
kind of become strangers to themselves
and their own world.
Una is released on September 1. Cat on a
Hot Tin Roof runs at the Apollo Theatre,
London, to October 4
thinking, Marrons method is to listen
and hear what drives him. In what is fast
becoming a theme across the episodes,
Matthew comes over as thoughtful and
kind, and his boldness online masks a
deep sensitivity. Ultimately,
Conversations With People Who Hate Me
isnt about confrontation, its about
finding common ground with ones
opponents and realising that, behind
the anonymous usernames, there are
real people with stories of their own.
Marron isnt the first person to
confront his trolls and make a show
about it. In Ask Not For Whom The Bell
Trolls; It Trolls for Thee, a 2015 piece for
This American Life, the journalist Lindy
West talks to a man who impersonated
her dead father online. Its a powerful
listen, not only because of the candour
of Wests abuser, but also because of
Wests readiness to share the pain that
his actions caused.
Thick skin:
Dylan Marron
confronts his
trolls in his new
podcast series
Kandace Springs. Her husky torch song
delivery on the early work conjured
monochrome film noir; the mix of soul
and vocalese on the late pieces con-
firmed her assured technique.
All the instrumental guests
impressed. Trumpeter Christian Scott
played imperious blues with a bur-
nished tone, Shabaka Hutchings, here
playing bass clarinet, reached the emo-
tional extremes that Minguss music
demands, and trombonist Bart Van Lier
delivered energy and finesse.
The crowd-pleasing finale, Moanin,
featured the flamboyantly pink-haired
Leon Pellegrinos riffs, whoomps and
split-note phonics on baritone sax. As he
played, he pirouetted and cavorted
round the stage, a prodigious feat that
smacked more of juke joint rhythm and
blues than the religious ecstasy that was
the pieces inspiration. The image stuck
beyond the encore, Better Git It In Your
Soul, and lingers still.
bbc.co.uk/proms
Monday 28 August 2017
I was worried people might think I wasnt coping
Businesses are attempting
to relieve the strain on
family carers by offering
the option of flexible
hours but more effective
policies are still needed,
writes Alicia Clegg
W
hen her father devel-
oped Parkinsons dis-
ease dementia, Mary
Bright did her best to
help with his care. As
his illness progressed, her weekends set-
tled into a joyless routine: a dash from
work on Friday to collect her two chil-
dren from their after-school club in
Bristol in the south-west of England,
feed them supper and get them into
their pyjamas for the four-hour journey
eastward, in heavy traffic, to their
grandparents home in Essex.
By the time her father died three
years ago she felt drained by the worry,
the long hours on the motorway and the
nights at her fathers bedside so that her
mother could sleep. But at no time did
the 47-year-old, a senior manager with
Aviva, the insurer, tell her employer. I
worried that people might think I wasnt
coping, she says.
Then last year, her mother was hospi-
talised after a fall. Ms Bright emailed her
boss, explaining the situation and
emphasising that everything was under
control. His reaction surprised her. He
picked up the phone and said: Go and
be a carer. For the moment, thats what
you need to do.
Ms Bright is one of a generation of
workers caught in a demographic pin-
cer, caring for elderly parents and rais-
ing children. Since November, she has
helped to develop a programme at Aviva
to support working carers and create
carers networks. The company is one of
a growing number of employers engag-
ing in such activities as the population of
elderly dependants increases.
In the UK about 6.5m people are car-
ers of adults, which the charity Carers
UK predicts will rise to 9m by 2037. In
Mary Bright with her mother, Anne. Ms Bright would travel from her home in Bristol to Essex every weekend to help care for her late father Charlie Bibby
the US, more than 1 in 6 adults have car-
ing responsibilities. Across Europe, 58
per cent of working-age carers are in
paid employment, according to Euro-
found, an EU agency, but many find it
unsustainable and cease work. Carers
suffer financially and employers lose
experienced workers.
Agile working can help. Swapping an
office desk in Bristol for a home office in
South Wales allowed Andrew Parfitt
Jones, an IT test manager with Lloyds
Banking Group, to keep an eye on his
elderly father, who suffered from a
heart condition and arthritis and lived
on the floor below.
Carers can still encounter problems,
even when employers are supportive.
Line managers who are new to the role
are prone to making policies up rather
than ask questions, says Hugh Neal,
who chairs the carers network at
FINANCIAL TIMES
WORK & CAREERS
KPMG, the professional services group.
To spare the awkwardness of repeat-
edly having to explain themselves, car-
ers at a number of businesses, including
BT, receive a document called a carers
passport, which describes their cir-
cumstances and working arrangements.
However, as Emma Codd, managing
partner for talent at Deloitte, observes:
You can have all the policies in the
world, but if someone believes that
[being labelled a carer] will damage
their career, the chances are they will go
under the radar.
This is why Katherine Wilson, head of
Employers for Carers, an employers
membership group backed by Carers
UK, encourages bosses to lead by exam-
ple. For a really senior figure to say Im
a carer would be fantastic, Ms Wilson
says. To any candidates, she says:
Please step forward. Hearing senior
Sponsoring carers networks
Agenda Providing physical and online spaces
where carers can share practical tips
and experiences can help working
carers. At KPMG, the carers network
How can advises management on carers issues
employers and helps to shape HR policy.
help? Funding employee assistance
Helplines and websites can be a useful
first port of call in a crisis, summarising
what help is available internally and
providing pointers to outside expertise.
Publicising carers stories
Encouraging carers to share their
stories through blog posts, interviews
and talks. This helps inform others who
are struggling they are not alone and
gives non-carers some insight into the
challenges that carers face.
11
colleagues talk about caring would give
encouragement to other people in the
same position, rebutting the stereotype
of carers as uncommitted, she says.
Looking after an elderly person
whose condition is worsening is very dif-
ferent emotionally from [raising] a
child and is harder for colleagues to
relate to, says Victoria Price, a partner at
EY. Ms Price is open about her situation,
juggling flexible work with care for her
three children and 96-year-old grand-
mother, who has dementia.
To keep her colleagues informed of
her whereabouts, she lists all her com-
mitments in an open electronic calen-
dar: attending sports day (available for
calls), meeting over grandmas care
(taking calls after 3pm).
If you cant attend a meeting in an
emergency everyone understands. But
the subtext is that work must be done
for when the client expects it, she
explains.
As the pressures on working-age
adults mount, some employers have
added emergency elderly care services
to employee benefits. However, these
are the exception. Ben Black, co-
founder of My Family Care, a leading UK
provider, says his company supplies 20
hours of childcare for every hour of
back-up care for the elderly.
From a corporate perspective, Ms
Wilson urges employers to include con-
sideration for carers in all aspects of pol-
icy, from training to leave policies and
provision for flexible working.
In practice, this means that whenever
a business talks about working parents,
it ought also to talk about carers.
Anna Gavriel, 37, despaired of re-es-
tablishing herself in real estate planning
after a two-year career break to care for
her father, who suffered a stroke.
Though she kept up her professional
accreditation, recruiters saw her as
semi-retired.
It was only when she saw an adver-
tisement last year for Deloittes Return
to Work programme, a 20-week
scheme to help professionals restart
their careers, that things looked up.
Now a real estate senior planner at
Deloitte, she hopes other employers
recognise careers dont always run
smoothly because life happens, too.
12 FINANCIAL TIMES Monday 28 August 2017

Jonathan Margolis Discover more insights

at ft.com/visualjournalism

Made in Graphical Insight Banks new world order

England: How rankings of the worlds largest banks have changed
One of the big lessons of the financial crisis that began in 2007 was that banks
coming home proved too big to fail. Fears of systemic collapse pushed governments into bailing
out hundreds of banks around the world. So it is ironic that the worlds biggest banks
from China have got bigger, not smaller in the decade since the crisis. That is true of western
institutions, such as JPMorgan and Bank of America which grew in large part due to
their rescue of troubled rivals. It is also true of banks in emerging markets, notably
China, where balance sheets have ballooned. Measured by total assets, Chinas four
big banks are now among the top five in the world. Many of Europes banks have
shrunk dramatically, including Barclays and Royal Bank of Scotland, which both held
the title of worlds biggest bank in the mid 2000s.
Selected bank
rankings by asset size Chinas banks are now the
biggest in the world
2006 2016
1 1 ICBC
2 China Construction Bank
3 Agricultural Bank of China
5 Bank of China
6 JPMorgan Chase
7 HSBC
8 Bank of America
9 BNP Paribas
10 10 Wells Fargo
11 Crdit Agricole
12 Citigroup
Glasses-frame maker Tom 15 Deutsche Bank
16 Barclays
Davies plans to have 30 per
cent of manufacturing
operations back in the UK 20 20 Bank of Communications
by the end of the year
23 RBS
25 UBS

T
hree years ago, on the 2017, 70 per cent in three years. In a There may be an element of justifying Davies believes, will help in a business Citigroup is
London Tube, I ran into a curious twist on the industrial history his decision retrospectively, but he that has one foot in the fashion world. the big Some European
chap I know, Tom Davies. of recent decades, teams of Chinese believes he can lower prices by making The Americans will love it, and it 30 exception banks have shrunk
I met him first in 2001 staff are coming over to train British in Britain. Labour costs in China have could also help us in the Far East. In to the US dramatically
when I wrote about his workers. It may seem almost a suicide risen. Many Chinese businesses I speak China itself, customers love things not growth and a
new, eponymous mission on their part, but Mr Davies to are thinking beyond manufacturing made in China. story number
n umber of Some big US banks
company which made upmarket is not closing the Shenzhen factory, in established cheaper bases like Finally, Mr Davies told me, he is European
European n acquired their rivals
glasses frames. The business later grew just no longer expanding it as the Vietnam and Bangladesh and are tired, as the boss and head designer, of lenders
lendeers have
ha during the crisis
from being so niche it was practically business grows. looking elsewhere. travelling. Im 42 now, I live in 40
bucked
b ucked th
the
secret to having its own factory in There has been much noise in The Shenzhen average [annual perpetual jet lag and Ive had enough of
trend
d to shrink
shrin
China, shops across London and spots Donald Trumps US about bringing salary] in 2007 was 2,500, said Mr it. He expects the Shenzhen factory to
in 1,000 opticians worldwide. manufacturing back to developed Davies. Its now 8,000, and I have be a self-running satellite.
It even gained me as a customer for countries, or reshoring. Is Mr Davies key people earning up to 55,000. Our This initiative is a mere pixel in a
its made-to-measure service, with my riding a fresh trend in the UK? car park is now full of workers cars. panorama. I wonder, though, if it
oversized head and lopsided ears as I asked the China-Britain Business The differential in premises costs is became a trend, whether this would be 50
well as celebrity clients, from Heston Council in London about other UK also not startling. His Shenzhen plant good or bad for China?
Blumenthal to Ed Sheeran. companies moving production from costs 2 per sq ft, but would go beyond My guess is that it would be good.
So, I asked back in 2014 as we strap- China. Remarkably, they had no record 4 if he renewed his lease. His London Younger Chinese people are tiring of
hung on the District Line, what Mr of any such thing. Its something cost is 8 per sq ft, although this being the worlds workshop. And
Davies business was up to? Well, he businesses talk about, but it never factory also needed a 600,000 refurb. judging by the quality and design of
said, Im thinking of moving seems to happen, said an official. Logistics costs will be lower making Chinese consumer technology I see, 60
61 ABN Amro*
production from China to the UK. Its Your guy may be a pioneer. glasses in London. But the biggest they are ready to become, like Japan
not as cheap as it was, and Made in The most surprising reason Mr saving will be because technology in his and South Korea, originators rather China
England would be a great sales point. Davies has for his move is economic. industry has moved on. A computer- than subcontractors. US
He is now doing just that. Last week, controlled machine tool once costing An upgrade to China 2.0, a confident, Europe
I visited Mr Davies as builders were In a curious twist on 250,000 is now a twsntieth of that, developed country making its own,
70
scrambling to finish converting a
derelict factory in west London to
the industrial history of he says ironically, from Chinese
makers. The software is also cheaper
globally desired products would have
its problems, but it would ultimately be
which he and 30 staff are moving recent decades, Chinese and easier to use. All this means he a progressive, stabilising development. *ABN Amro was acquired in a three-way deal by RBS, Fortis and Santander in 2007, but the Dutch rump of
the business re-emerged under the ABN name when Fortis collapsed and was nationalised in 2008
shortly, with 20 more to join later. He
plans to have 30 per cent of
staff are coming over to needs fewer staff, Chinese or British,
than he used to. jonathan.margolis@ft.com
Non-US asset valuations are affected by exchange rate changes

manufacturing in the UK by the end of train British workers The Made in England cachet, Mr @TheFutureCritic Source: The Banker FT visual journalism: Patrick Jenkins, Ian Bott

ACROSS 4 Batting with the opposing

MONDAY PRIZE CROSSWORD 1 Nannys relations supply this players close to the wicket (7)
No. 15,639 Set by DANTE material (8) 6 What highly attractive
        5 Pursued by two boys (6) investments may yield (8,7)
10 Steps look sound (5) 7 Shy about being popular, but
 11 Expert in money matters, ie in bright (5)
 
Franc conversion (9) 8 Could be room used at the
12 Warn head to display vigilance March Hares tea-party (8)
(9) 9 Unaccustomed to being
13 Verbal, but unwritten, surplus (6)
 
authority (3-2) 16 Foolishly maintain oriental is
14 Shed follow me and get without vitality (9)
caught (6) 17 One invoice in another goes
  
15 Obscure jokers may be stupid to American it may produce
 people (7) ill-feeling (8)
18 Revised tale with a 19 Attorney to call for defiance
   revolutionary ending (7) (6)

20 Work that is about making a 20 A paid informer (7)
capital investment (3,3) 21 Consents, but will be a long
   22 An oriental, well-liked at first, time coming round again (6)
becomes foolish (5) 23 Walk like a doctor in drink (5)
24 Arguing, so earning correction
  (9) SOLUTION 15,627
25 It has misleading passages (9) $ & & 8 5 $ 7 ( & 5 $ 7 ( 5
26 I start to scold, being furious % 2 $ ( 0 $ 2 2
5 8 0 0 < 5 ( $ / , 6 7 , &
 
(5) 2 3 0 5 1 6 ( .
27 Asparagus or fruit on board $ 3 2 / 2 * , 6 7 ( 1 ' 8 3
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(6) 0 8 5 ' ( 5 6 & + ( 5 = 2
A prize of The Good Word Guide by Martin Manser and How to 28 Those starting university are $ 5 & ( ( /
Sound Clever by Hubert van den Bergh will be awarded for the more energetic (8) 6 ( ( 7 + ( 6 & $ 6 + ( '
6 $ ( ( 8 ; 5
first correct solution opened. Solutions by Wednesday Septem- DOWN 8 5 % $ 1 & ( / ( % 5 $ 7 (
ber 6, marked Prize Crossword 15,639 on the envelope, to the 1 Y
Yet his talk is far from uplifting $ ( ' 2 ( - 0 1
* 2 / ) / , 1 . 6 ( / , 7 (
Financial Times, 1 Southwark Bridge, London SE1 9HL. Solution (3-3) ( / ( ' 7 & 1 *
on Monday September 11.. 2 Awfully mean beast causing ' ( 6 ( 5 7 $ ( 6 7 + ( 7 (
............................................................................................................................................ humiliation (9)
............................................................................................................................................ 3 One helping to remove litter The winners name will be published
from the field (9,6) in Weekend FT on September 9.
Monday 28 August 2017
Stoking coal Higher gas prices
bring new life to US sector PAGE 15
Big banks at odds over Noble CDS
3 Confusion across $10tn market 3 Dispute on repayment terms extension 3 Swaps body declines to issue ruling
ROBERT SMITH AND DAVID SHEPPARD
LONDON
The plight of Noble Group is pitching
some of the biggest investment banks
against each other in a tussle over credit
default swaps written against the com-
modity traders borrowings.
Goldman Sachs, Nomura and hedge
funds that stand to gain from having
bought CDS protection on Noble
are facing off against JPMorgan, BNP
Paribas and other traders. It is
shaping up to be a test for reforms made
to the $10tn CDS market a decade after
Gold traders on alert
for US political shifts
HENRY SANDERSON
Donald Trumps promise to turbo-
charge the US economy sent gold tum-
bling in the weeks after his election. His
failure to do so has seen the yellow metal
more than recover its losses in 2017.
Now, after touching $1,300 a troy
ounce this month for the first time since
Mr Trump was elected, investors and
analysts say Washington will be central
to whether gold can extend the 12 per
cent rally it had chalked up this year.
The bearish scenario for gold will
unfold if the White House and the
Republican-controlled Congress deliver
a package of tax cuts that re-animates
the struggling dollar and sends expecta-
tion for interest rates higher.
Gary Cohn, head of the White House
national economic council, said on Fri-
day that the administration was push-
ing for a package of tax cuts to be passed
by the end of the year.
It was that prospect which sent gold
sliding almost 10 per cent between the
US presidential election and the end of
the year. Given that the metal offers no
yield to investors, it typically fares badly
during periods when interest rates are
rising.
Investors came into 2017 expecting a
boost from Washington in the form of
tax cuts and potentially infrastructure
spending, resulting in the reflation
Independent labels spin
$1bn from streaming
Independent labels have made $1bn
from streaming services as tech
advances shake the power structure of
the industry. Groups such as Spotify
are helping independents compete
with the small number of large groups
that have dominated for years.
Report iPAGE 14
Companies
Airbus.............................................................14
Alibaba...........................................................14
Allergan.........................................................16
Amazon.........................................................14
American Electric Power....................15
Aprirose .......................................................13
Armstrong Energy..................................15
Arsenal...........................................................16
BNP Paribas ..............................................13
Baidu...............................................................14
Bank of America.........................................1
Bank of Montreal....................................16
Bank of Nova Scotia.............................16
Barclays .......................................................13
Bayern Munich..........................................16
Beggars Group.........................................14
Benchmark Capital ................................13
BlackRock.....................................................13
Bristol-Myers Squibb............................16
CBRE...............................................................13
The Financial Times Limited 2017
13
Chiefs in charge Providents problems
expose super-leader myth JONATHAN FORD, PAGE 14
Immelt takes
himself out of
the running
it was blamed for exacerbating the default, seeking to avoid confusion or offsetting positions or hedges in the bas, which are said by traders to stand
for Uber chief
financial crisis. drawn-out legal disputes. same products. to lose in the event of a Noble default,
The dispute rippled through debt But earlier this month the ISDA com- After the first claim was filed early have filed questions with ISDA to move
markets in London and Asia last mittee responsible for deciding on the last week, it forced a chain reaction of the process back in front of the industry HANNAH KUCHLER SAN FRANCISCO
week after banks and funds served status of Nobles debt said it was unable claims and counterclaims, with one bodys determinations committee,
Jeff Immelt, the former General Elec-
notice to sellers of CDS protection. They to determine if the Singapore-listed source saying 12 institutions had trig- which meets tomorrow.
tric chief executive, has taken himself
claimed an extension to Nobles loan trader was in default or not, creating a gered notices of default. The net total Goldman Sachs, Nomura, JPMorgan
out of the running for the top job at
repayment terms amounted to a debt vacuum that allowed bilateral claims to owed by sellers of CDS protection on and BNP Paribas declined to comment.
Uber, as the ride-hailing company tries
restructuring. proliferate. It is the first time ISDA has Noble could be up to $157m. ISDA declined to comment.
to unite around a leader to replace
The move was unusual, as the CDS dismissed a question of default without Notices were flying all around the In the absence of a ruling from ISDA,
Travis Kalanick.
market has agreed since the crisis to ruling either way. city, said one trader. They wanted to banks and funds that have bought or
rely on the rulings of the International More than $1.2bn of CDS is written on be below the radar on this but the banks sold Noble CDS are flying blind, with no Mr Immelt tweeted yesterday that he
Swaps and Derivatives Association to Nobles debt, according to ISDA data, receiving the notices were obviously precedent to follow, except how the had decided not to pursue a leadership
determine when a company is in and banks and hedge funds often hold freaked out. JPMorgan and BNP Pari- market operated pre-2009. position at Uber, despite his immense
respect for the company and its
founders.
Uber did not respond to a request for
comment.
Mr Immelt, who stepped down from
GE this year, had been seen as one of
the strongest candidates for the role,
which has proved hard to fill amid dis-
putes between investors and Mr Kalan-
ick.
Despite these fractures, one of which
is the subject of a lawsuit, all sides have
agreed on the importance of appointing
trade, Russ Koesterich, a portfolio a chief executive as soon as possible.
manager at BlackRock, noted. Uber has been run by a committee of
Golds performance may be most 14 senior executives since Mr Kalanicks
closely linked with what happens departure in June. Mr Kalanick resigned
in DC. after a series of scandals including a
However, US politics could yet prove report exposing sexual harassment at
the catalyst for gold to extend a rally few the company. Several other senior lead-
saw coming at the turn of the year. ers have left in recent months.
Steven Mnuchin, US Treasury secre- The board must now consider other
tary, has said that Congress has until late candidates who fit the requirements for
September to raise the countrys self- being more conventional leaders while
imposed debt ceiling. Failure to do so still encouraging Uber to innovate.
could lead to default, and political wran- Meg Whitman, the Hewlett Packard
gling over lifting the limit has already Enterprise chief executive, is still being
begun. considered, according to people familiar
Were in this strange, unfamiliar sit- with the matter, despite her earlier pub-
uation. For most of the last five or six lic statements. She tweeted at the end of
years, the geopolitical risk was outside July: The next Uber CEO will not be
Dario Pignatelli/Bloomberg
the US, and now its within the US, said Meg Whitman.
Mr Koesterich. Ubers crises have failed to knock the
If Washington stumbles or if theres
Gold price Prospects for US economy company off course, with revenues
an issue with the debt ceiling, that $ per troy ounce US economic policy uncertainty index surging in the second quarter. Gross
would produce some risk-off and a rally 1350 Nov 9 bookings doubled year-on-year to
for gold. Nov 9 Trump wins 400 $8.7bn, resulting in adjusted net reve-
Gold was approaching a record the Trump wins 1300 US election nue for Uber of $1.75bn.
last time Congress left investors on edge US election 300 But the group has crafted a share sale
1250
by almost failing to raise the debt ceiling plan to prop up its valuation, which is
in 2011. The prolonged machinations 1200 200 the largest for a private company in Sili-
prompted S&P Global Ratings to strip con Valley. It is planning a new funding
the US of its AAA for the first time. 1150 100 round where investors would buy in at
Investors say a ratcheting up of geo- 1100 0 the $68bn valuation but would also buy
political risk associated with Korea ten- some stock at a lower price, according to
Sep 2016 2017 Aug Sep 2016 2017 Aug
sions and Venezuela chaos might also two people familiar with the deal.
propel a metal that investors turn to in Source: Bloomberg Additional reporting by Leslie Hook in
times of strife. San Francisco
Lloyds set to sell HQ as China buyers
drive up City of London office prices
JUDITH EVANS AND MARTIN ARNOLD Lloyds declined to comment. Meanwhile 20 Gresham Street, close
Despite concerns about the London to Lloyds HQ, was sold to China
Lloyds Banking Group is poised to sell
property market after the vote to leave Resources Land, a state-owned group,
off its City of London headquarters in a
the EU, investor demand for office and the US company Northstar Realty
sale-and-leaseback deal that would
buildings has been strong, largely Europe for more than 300m in May.
take advantage of a property market
thanks to outbound Chinese capital. The deals have prompted more own-
buoyed by an influx of Chinese buyers.
Chinese and Hong Kong buyers plunged ers to hoist for sale signs, including the
The plan comes as Asian investors drive almost 4bn into London real estate in landlords of Plantation Place, one of
prices for London office assets to fresh the first half, according to the property Londons largest office developments.
highs. Lloyds is preparing to bring the advisers CBRE. Lloyds 120,000-square-foot, glass-
building to market but has not yet done The Chinese buyers have been drawn and-steel headquarters was completed
so, according to two people briefed on in by the decline in sterling and by prop- 15 years ago. The bank, which returned
the situation. erty yields that compare favourably to private ownership in May almost a
The UK lender could make 140m to with cities such as Hong Kong. decade after a state bailout, has been
150m from such a deal, according to Two skyscrapers, the Walkie Talkie at offloading assets in a series of deals.
agents familiar with the building at 25 20 Fenchurch Street and the Cheeseg- It sold 44 branches to property inves-
Gresham Street. It does not intend to rater or Leadenhall Building, sold to tors Aprirose for 39.5m in January, and
move out, but would negotiate a long Chinese buyers for more than 1bn each the Edinburgh HQ of subsidiary Scottish
lease with any potential buyer. this year. Widows for more than 105m in 2015.
Companies / Sectors / People
Canadian Imperial Bank of JPMorgan Chase...................................1,13 Provident Financial................................14 Construction...............................................13 People
Commerce....................................................16
Kweichow Moutai......................................2 Royal Bank of Canada.........................16 Energy............................................................15 Bescond, Muriel........................................15
Chelsea..........................................................16 Financial Services..............................14,16
Lenovo...........................................................14 Royal Bank of Scotland.......................13 Buffett, Warren............................................1
China Resources Land.........................13 Financials................................................13,14
Liverpool.......................................................16 Schroders......................................................13 Caldas, Charles.........................................14
Citigroup..........................................................1 Food & Beverage.......................................2
Lloyds Banking Group..........................13 Scottish Widows.......................................13 Crook, Peter................................................14
Cloud Peak Energy.................................15 Health.............................................................16
Manchester City.......................................16 Socit Gnrale......................................15 Davies, Tom................................................12
Contura Energy........................................15 Healthcare...................................................16
Manchester United.................................16 Spotify............................................................14 Dimon, Jamie................................................1
Coutts ...........................................................13 Industrials.....................................................13
Merlin..............................................................14 Standard Chartered...............................13 Dottori-Attanasio, Laura.....................16
Deloitte..........................................................16 Insurance......................................................13
Morgan Stanley...........................................1 Swansea City..............................................16 Enders, Tom...............................................14
Everton..........................................................16 Media..............................................................14
Murray Energy..........................................15 Tencent.........................................................14 Hendler, David.............................................1
FC Barcelona..............................................16 Mining.............................................................15
National Bank of Canada...................16 Toronto-Dominion..................................16 Immelt, Jeff..................................................13
Facebook........................................................9 Oil & Gas......................................................15
Noble Group .............................................13 Uber.................................................................13 Kalanick, Travis.........................................13
Foxconn...........................................................2 Personal & Household Goods.........12
Nomura..........................................................13 Universal.......................................................14 Kellow, Glenn..............................................15
General Electric........................................13 Pharmaceuticals.......................................16
Gilead..............................................................16 Northstar Realty......................................13 Vivendi...........................................................14 Mills, Martin................................................14
Property...................................................13,16
Goldman Sachs .....................................1,13 Norton Rose Fulbright.........................13 WeChat..........................................................14 Murray, Robert..........................................15
Retail...............................................................14
Google..............................................................9 Novartis.........................................................16 Wells Fargo....................................................1 Quasha, Grant............................................15
Retail & Consumer.................................14
HSBC .............................................................13 PPL...................................................................15 Xiaomi............................................................14 Scilipoti, Anthony....................................16
Support Services.....................................16
Haier..................................................................2 Paringa...........................................................15 Sectors Technology.......................................13,14,16 Sindzingre, Danielle...............................15
Hewlett Packard Enterprise..............13 Paris Saint-Germain...............................16 Aerospace & Defence...........................14 Travel & Leisure.................................13,16 Whitman, Meg...........................................13
Huawei.............................................................2 Peabody Energy.......................................15 Banks.................................................1,13,15,16 Zaijia, Xiaoyu.............................................14
JD.com............................................................14 Pfizer...............................................................16 Basic Resources..................................13,15
Week 35
14 FINANCIAL TIMES Monday 28 August 2017

COMPANIES
INSIDE BUSINESS
Aerospace & defence
ON MONDAY

Airbus weighs Austria helicopter suit Jonathan

Ford
Eurofighter probe cited It is interesting on what basis they However, Airbus, which is the market 2bn defence division from 2000 to 2005.
would like to exclude us, said a person leader in the segment with its H145 Mr Enders hit back at the revelations,
as grounds for exclusion Value of a 2003

from military tender

close to the company. There is no legal
case against us opened in Austria only
investigations. Airbus Helicopters is not
light twin helicopter, has said it is con-
sidering staying out of the bidding race
as long as the ministry continues to criti-
contract to provide
18 Eurofighter
combat jets
accusing the Austrian government of
trying to score cheap political points
and of abusing the legal system.
The chief who works
RALPH ATKINS ZURICH
PEGGY HOLLINGER LONDON
subject to these investigations.
The Austrian defence ministry told
cise it in public.
The tit-for-tat row was sparked by the 60m
The Eurofighter case is politically sen-
sitive in Austria, which holds national
miracles is a myth
Airbus is weighing legal action against
Austria should its defence ministry
the Financial Times: It is understanda-
ble that currently we should not seek
new business relationships with a com-
legal battle over a 2003 contract to pro-
vide 18 Eurofighter combat jets, which
was renegotiated in 2007.
Maximum value of
Austrian tender
for 12 small military
elections on October 15.
However, it is unclear whether Airbus
could legally be excluded from a bidding
just ask Provident
exclude the company from a tender for pany against which criminal investiga- However, the ministry of defence has helicopters process under EU rules.
12 small military helicopters, as the tions are running. said it would not have signed a new deal The row comes at a difficult time for

C
long-running row over a fighter jet con- A formal bidding process had not if it had been aware of evidence it uncov- the companys helicopter division. Its an chief executives make a difference to the
tract escalates. been launched for the helicopter con- ered in a subsequent internal investiga- Superpuma military transport and companies they run? Yes, well sometimes they
The European aerospace and defence tract, the ministry added, although tion, which it alleges shows 183m in NH90 Tiger attack rotorcraft have ben do, albeit not quite in ways investors necessar-
group issued the warning after the Aus- requests for information had been costs were illegally hidden in the pricing grounded during the past year after ily want or expect.
trian defence ministry said last week it sent to helicopter manufacturers, of the jets. crashes. Take the case of Peter Crook, who was until
would like to bar Airbus if possible from including the Airbus group. In April it was revealed that Tom End- Airbus Helicopters has also struggled last week the chief executive of Provident Financial, a Brit-
the 50m-60m tender, because of a Potential bidders have until Septem- ers, Airbus chief executive, was being against a severe downturn in the off- ish subprime lender. For a decade after the financial crisis,
continuing investigation into an alleg- ber 26 to indicate their interest in bid- investigated as part of the Eurofighter shore oil and gas market. In the first half Mr Crook was seen by the companys board as a bit of a
edly fraudulent 2bn sale of Eurofighter ding, say what product they would offer fraud probe, along with dozens of oth- of this year, earnings tumbled more superstar, smoothly piloting its affairs as the share price
jets in 2003. and give an approximate price. ers. He had been in charge of the than a third. more than tripled. The remuneration committee paid roy-
ally to retain his services, figuring perhaps that a few mil-
lion was chump change for someone who was adding bil-
lions to the market capitalisation. Over the past five years,
he earned a princely 30m.
Technology. Hardware Then Mr Crook did something that really made a differ-
ence. Earlier this year, he reorganised Providents core

Chinese groups answer call for digital assistants home lending division, aiming to replace its army of old
fashioned door-to-door, commission-based agents with a
smaller number of full-time, technology-enabled employ-
ees. The intention was sensible: to reduce costs and boost
recoveries, thus generating higher profits. In practice, the
initiative achieved the opposite. Providents part-timers
Multiple sectors use listening turned out not to want to become ear-chipped employees
devices to tie in consumers but and defected, sometimes to competitors. The technology,
unsurprisingly, experienced teething troubles.
profitability poses a question Two profit warnings followed in swift succession, and
the second led to a scrapped dividend and a rout of the
LOUISE LUCAS HONG KONG share price, which plummeted back to levels last seen in
2007, when Mr Crook took over. Last week he left with
Voice-controlled digital assistants immediate effect.
across the globe appear to have been Several observations flow from this parable. One is that
given a single order: Proliferate! And it explodes the picture of Mr Crook as the unique author of
nowhere are they scrabbling faster to Providents successes. For when he lost the services of
follow the procreation path pioneered some of its far less well remunerated (but crucial) front-
by Amazons Echo smart home speaker line troops, it did not take long for the company to be
than in China. dropped firmly in the soup. The very circumstances of his
Some 43m Chinese-made digital departure are also awkward. How, one might ask, could
assistants were in place last year, the same person be both the miracle-working boss worth
according to the telecoms consultancy all that performance-based pay and the bungler who mis-
Ovum. Alibaba, the technology giant, is managed a restructuring so badly that he had to go?
entering the fray; last month handset The answer, of course, is that Mr Crook was neither.
maker Xiaomi revealed a smart speaker While his management qual-
(at a bargain $45), not long after PC ities would have influenced
maker Lenovo launched a version. Providents performance,
As with most
The world is going to be populated the effects were much CEOs, Crooks
with [such] devices. People are going to smaller than the remunera-
make a lot of hardware, said one indus- tion committee recognised.
tenure was,
try participant. Theres going to be tech As with the majority of to a great extent,
companies that serve hundreds of mil- CEOs, what most marked his
lions of consumers. tenure was, to a great extent,
marked by luck
Digital assistants are the latest ploy by luck. He was a hero in the
tech companies to pull consumers into post-crisis years, when rivals such as the high street banks
their ecosystems and keep them there vacated Providents markets, allowing the company to
longer making calls, shopping, listen- make superior returns. He became a villain when competi-
ing to music or navigation. tion increased, forcing him to embark upon the doomed
restructuring. It was not that Mr Crook changed or that his
management virtues became shortcomings. His luck sim-
As such gadgets evolve, ply ran out.
its all about data The same vagaries of chance explain why a study of For-
tune magazines most admired companies finds that,
the more you have, the over two decades, companies with the lowest ratings go on
better you can train to earn much higher stock market returns than those at
the top. The stellar performance that drew praise at the
outset was mainly due to luck and hence bound to dimin-
It is early days for the Chinese groups, Special delivery: The winners, according to Chwee director at Gartner, adds the real value tent. Worse, he argues, the smart ish. Statisticians refer to this as reversion to the mean.
but most have begun with offerings JD.com has Chua, an analyst covering big data ana- for Chinese customers is third-party speakers could wipe out sources of reve- What conclusions might one draw from this? Well, it
linked to their own products to which launched a lytics and cognitive AI at consultancy offerings: ordering meals, booking nue by diverting users away from ad- kicks away the principal plank supporting very high pay
additional skills, such as weather fore- device that can IDC in Singapore, will be those who have flights and calling taxis. But that would bearing screens. If tomorrow everyone for top executives: the belief that they are vital to the suc-
casts, can be added. JD.coms assistant be used to buy been around longest and boast the most take quite some time . . . because it did searches by voice, what would that cess of the enterprise, and that their loss would spell doom
can be used to shop on its ecommerce goods from its data. To develop [the relevant] capa- takes a lot of training and data to get the mean for the digital [ad] display mar- for shareholders. After all, if the boss is just a replaceable
platform. ecommerce bility, its all about the data. The more machine up to speed and to understand ket? he asks. You could look at it in technician running a bureaucracy, there is little need to
China benefits from being virgin terri- platform you have, the better you can train. customers, she says. two ways. Digital assistants could be pay them many millions just to stay in post.
tory, says Radio Free Mobile analyst Mark Andrews / Alamy
In China the data sent back from lis- Stalwart smart speakers include cannibalising or negating revenues. It also damns the complex performance-based packages
Richard Windsor. Foreign competition tening smart devices can be especially Baidus Xiaoyu Zaijia, which had a As such, he views the plethora of that allow bosses to reach vertiginous totals. There is little
is almost non-existent, partly a result of useful. Those in the English-speaking screen predating Amazons Echo Show, devices as a means of protecting busi- evidence that these serve a purpose other than enrich-
protected markets and also a function of world are largely monoglot or bilingual. and JD.coms DingDong speaker, com- ness lines and keeping consumers ment. A recent Lancaster University Management School
language capability, given Chinas hun- In China where as well as dialects manding an 80 per cent market share, within the companys ecosystem, much survey found that, over a decade, the correlation between
dreds of dialects. there are distinct cultural references, according to Canalysis. as Apple hardware encourages use of performance and pay among FTSE 350 company bosses
Yet analysts are divided on how recep- sports heroes, culinary specialities and Like Xiaomi, whose speaker links up iTunes and other services. was negligible. Returns on capital barely budged, yet pay
tive the market will prove to be to digital other cultural foibles platforms have to its smart home appliances, DingDong Analysts also note that as a regional- rose 80 per cent.
assistants. Mr Windsor says the Chinese more to learn. talks to 100 brands that have smart ised business unlike, say, smart- For all the talk of pay restraint in the C-suite, nothing
predominantly access services through This factor, analysts reckon, could devices, so can take orders to switch on phones Chinas voice-controlled dig- will change while boards still cling to the cult of the indis-
their mobiles: so while a digital assistant play to the strengths of Tencent, the lights or cook two cups of rice. ital assistants are difficult to scale. The pensable CEO. Each bosss pay will be bid up until the com-
at home beats the PC and web browser, social media giant, and its Xiaowei voice But it is clear profitability will be in only one that is truly global today is pany hits a share price-crunching glitch, whereupon the
it offers less of an advantage over the assistant. Not only does it own the popu- shorter supply than devices. In most [Apples] Siri, says Mr de Renesse. This next miracle worker will be identified to fix it, who will in
smartphone in your pocket. lar WeChat messaging app, with more cases, there is no revenue generation means many speakers will fall silent turn be showered in cash. Yet the truth is that none of them
Despite this, surveys show that usage than 900m users, but Chinese often dic- directly from digital assistants, says Mr among the Chinese ranks of wannabes. is irreplaceable, and they should be paid more simply and
is far higher in China than in the US or tate rather than write their texts de Renesse. Its just a new user inter- Says Mr Chua: You will see massive modestly. It is time boards reminded themselves of this.
UK, says Ronan de Renesse, who leads partly because characters are time-con- face . . . and will only facilitate online consolidation because you need size to
the consumer tech practice at Ovum. suming to write. Sandy Shen, research purchases of goods, services and con- keep developing the technology. jonathan.ford@ft.com

Contracts & Tenders Technology

Independent record labels spin $1bn from streaming services

ANNA NICOLAOU NEW YORK
Independent record labels have made
$1bn from streaming services, accord-
ing to a leading licensing agency, as
technological advances have shaken
the industrys power structure.
Merlin, which represents 20,000 inde-
pendent labels, has reported that
annual sales grew eightfold in five years,
to nearly $400m in 2016, outpacing the
Businesses For Sale broader industry.
Digital music presented a more level
playing field, said Martin Mills, whose
Beggars Group, represented by Merlin,
Business for Sale, Business Opportunities, Business Services,
Business Wanted, Franchises has launched such artists as Adele and
Runs Daily Vampire Weekend.
......................................................................................................................................................................................................................................................................... When Mr Mills founded the label in
Classified Business Advertising
London in 1976, recorded music was all
UK: +44 20 7873 4000 | Email: acs.emea@ft.com
about vinyl. But as distribution has
evolved from CDs to digital downloads
and streaming, streaming groups such
as Spotify are helping independents
compete with the small number of large
groups that have dominated for years.
Streaming allows small labels to reach
global listeners without pressing and
shipping CDs, the hefty costs of which
have helped keep the big three labels
Universal Music, Sony and Warner in
command.
Oxford-educated Mr Mills started his
label when a punk band that had been
rehearsing in the basement of his record
shop asked for help putting out their
music. Beggars grew into one of the
worlds largest independents but strug-
gled to deliver music to listeners in less
developed markets such as Mexico.
Such regions had become far more
accessible and made up about 20 per
cent of revenues, said Mr Mills.
Charles Caldas, Merlin chief execu-
tive, said overall sales in Brazil a
struggle to crack in the 1990s unless
you were Britney Spears had over-
taken those of France.
Streaming has shaken the hierarchy
of the industry. When CDs reigned,
labels would have to pay [retailers] for
good placement in stores, said Mark
Mulligan at Midia Research. Now the
labels hold the power.
For that, they can thank Steve Jobs.
The Apple co-founder agreed to pay
labels about 65 per cent of revenues
when he created the iTunes store, set-
ting a precedent.
Merlin has emerged as a fourth
major, holding the rights to about 12
per cent of Spotifys catalogue, and has a
seat at the negotiating table for royal-
ties. In April Spotify struck a fresh
licensing deal with Merlin, before reach-
ing agreements with Sony and Warner,
second and third behind Universal.
Subscription streaming, where peo-
ple pay about $10 a month for access to
30m songs, has boosted earnings across
the industry, from the biggest label, Viv-
endi-owned Universal, to Beggars,
which last week reported revenues of
71m for 2016.
As Spotify has grown, its playlists
have emerged as a new gatekeeper to
success, a role once played by terrestrial
radio. That could preserve the advan-
tage of the big groups, which were more
likely to get artists heavily promoted on
to those playlists, said Mr Mulligan.
Monday 28 August 2017
US war on coal eases thanks to gas price rise
Altered energy-generation equation provides respite for miners while the Trump administration takes the credit
ED CROOKS NEW YORK
Paringa Resources, a mining company
with no production but some long-cher-
ished plans, has been one of the most
immediate beneficiaries of Donald
Trumps election as US president.
Since 2012 it has been looking at a coal
prospect in Kentucky, acquiring leases
and drawing up plans. The reserves are
thermal coal, used for power genera-
tion, and Paringa had a contract to sell
40 per cent of the mines output to utili-
ties owned by PPL. But last year it still
needed to raise capital to make the
project a reality.
Mr Trump, with his promise to bring
back coal, caused a sea-change in sen-
timent in the market, says Grant Qua-
sha, Paringa chief executive.
In the spring the company raised
A$53m on the Australian Stock
Exchange and a $20m debt facility from
Macquarie, and construction started
this month. Poplar Grove is scheduled to
begin production in a years time.
The investment is among several
signs of life in the US industry, with
increased production and exports fuel-
ling talk that coal is making a comeback.
Production in the first quarter was up
14 per cent year on year, and exports
were 58 per cent higher.
Mr Trump has been quick to take the
credit, telling a rally in Phoenix last
week: Weve ended the war on beauti-
ful, clean coal.
But Mr Quasha says his business
model is about carving out a niche with
low-cost production, and does not rely
on the market growing. There is a
secular decline in the US thermal coal
industry there is no doubt about that,
he says.
The stock market performance of US
miners reflects that caution. Peabody
Energy, the worlds largest private coal
group, emerged from bankruptcy in
April and relisted on the New York
Stock Exchange at $31.50. Its shares
closed at $27.88 on Friday.
Shares in Cloud Peak Energy have lost
60 per cent of their value since the week
Mr Trump was elected last November.
Contura Energy, formed from some
of the assets of Alpha Natural
Resources, which went bankrupt in
2015, postponed an initial public offer-
ing this month, blaming capital market
conditions.
Privately held Armstrong Energy said
two weeks ago it had entered forbear-
ance agreements with some of its
bondholders and appointed a chief
restructuring officer.
The Trump administration has tried
to help, scrapping or trying to scrap
numerous regulations on the produc-
tion and use of coal.
But Matt Preston, research director
for North American coal at Wood Mac-
kenzie, says that while those moves may
make a difference at the margin, they
are not the reason that production has
rebounded.
The real driver is that gas prices are
higher, he says. Where coal goes from
here depends on where gas goes.
Coal is in a head-on battle with gas to
supply the US with electricity. As bench-
mark Henry Hub natural gas fell below
$2 per million British thermal units
last year, coal-fired plants provided just
30 per cent of US power, the lowest level
on record.
This year, with gas back above $2.90,
coals share is edging up to 32 per cent,
according to the Energy Information
Administration.
If gas prices stay at around these lev-
els, lower-cost production from the
Powder River Basin of Wyoming and the
Illinois Basin, which includes Poplar
Grove, can be competitive. But higher-
cost Appalachian coal from the eastern
US will often be uneconomical.
Time is not on the side of coal, says
Banks
SocGen employees in Libor stand-off
ALISTAIR GRAY NEW YORK
CAROLINE BINHAM AND
DAVID KEOHANE LONDON
US authorities will need to overcome
sizeable hurdles if they are to success-
fully prosecute two French Socit
Gnrale bankers charged over alleged
Libor rigging, legal experts have said.
Lawyers cast doubt on whether the
women among the most senior indi-
viduals yet to face indictment in the glo-
bal probe into manipulation of the
financial benchmark would ever see a
US courtroom.
Danielle Sindzingre and Muriel Bes-
cond were indicted in a federal court in
New York last week, but neither is in the
US and the Department of Justice would
not say if it was seeking extradition.
This is ultimately a big stand-off,
Digging deep
High hopes: delegates from West Virginia at the Republican National Convention in Ohio last year; but promised action has not materialised Reuters
After years of falling prices, coal
and gas markets are recovering
Coal and gas prices
Eastern Rail
($ per tonne)
80
60
40
20
0 0
2010 11 12 13 14
Sources: Bloomberg; Energy Information Administration *Million British thermal units
Dan Klein of Pira Energy, a researcher
owned by S&P Global Platts.
Most of the installed coal-fired gen-
eration capacity is quite old, and if we
have natural gas prices around where
they are today, companies are not going
to want to spend money on coal plants
that need repairs.
From 2012 to last year, an average of
8.5 gigawatts of coal generation capacity
was retired every year, steadily eroding
the customer base. Mr Klein expects a
further 6 to 9GW to disappear every
year to 2020.
Not a single new commercial coal-
fired plant is planned in the US, com-
pared with 2.6GW of new solar capacity,
Most capacity is quite old
. . . Companies arent going
to spend money on coal
plants that need repairs
10GW of wind and 38GW of gas-fired
plants scheduled to start in 2017-18.
Even American Electric Power, the
largest generator from coal in the US in
2015, has been turning to renewables.
Last month it announced a plan to
invest $4.5bn to build the largest wind
farm in the US.
Stopping coal plant closures has
become a priority for the mining indus-
try. Glenn Kellow, chief executive of
Peabody, argued in a speech last week
that there should be a two-year morato-
rium on coal-fired closures to protect
reliability . . . until a thorough review of
the grid is complete.
said Roger Burlingame, a former US fed-
eral prosecutor who works at Kobre &
Kim representing European-based cli-
ents under investigation by the US. As
long as they stay in France, they are not
going to be extradited.
Neither woman responded to
requests for comment on LinkedIn.
French courts have been loath to
allow the long arm of US justice to reach
its citizens. Previous decisions by
French authorities and courts over the
Libor-rigging scandal suggest they
would look sceptically at US claims.
A Paris appeals court refused this year
to extradite Stephane Esper, a former
SocGen trader who was charged by the
UKs Serious Fraud Office. Mr Esper
could not be extradited, it said, because
the alleged activities had not been an
offence at the time in France.
FINANCIAL TIMES 15
COMPANIES
Export outlook
Waning global demand
has metallurgical lining
Compared with the competition
between coal and gas at home,
exports are a sideshow for the US
mining industry, accounting for
only 11 per cent of production in the
first quarter.
They did provide a useful boost
to demand, though, helped by the
weak dollar and Chinas moves to
close inefficient mines, tightening
world markets.
However, there are questions
about whether those sales can be
sustained. Among the strongest
markets in the first quarter were
Britain, France and Germany. But
France plans to shut all coal-fired
plants by 2022, Britain by 2025,
while Germany is curbing its
demand.
The International Energy Agency
has forecast that from 2017 to 2021
thermal coal imports will fall for
Japan, and rise only slowly for
South Korea two important
sources of growth.
US coal competes against US
gas internationally. But rising
US coal production has also US coal exports exports of liquefied natural gas
picked up in recent months Short tons (m) have helped drive down prices,
making gas-fired generation more
US coal production (short tons, m) 2016 2017
competitive against coal.
Henry Hub 3.3 Netherlands One segment that seems to have
($ per mmBtu*) 300
a robust, long-term future is
8 250 metallurgical coal, used for making
Netherlands 2.5 steel. Met coal accounts for about
6 200 2.1 South Korea 55 per cent of US exports by
India, Brazil 1.9 1.9 India weight, but more by value. Its price
150 1.7 Brazil is more than double thermal coals.
4 1.6 Japan
100 US met coal exports fell during
South Korea 1.1 1.2 UK, Germany
Japan 1.0 2012-16, but have revived. For as
2 0.9 Mexico
50 Mexico 0.7 long as we are making steel, there
Germany 0.6 will be a market for the high-quality
0 UK 0.3 met coal the US produces, says
15 16 17 2011 12 13 14 15 16 17 Matt Preston of Wood Mackenzie.
Murray Energy, a privately held
miner, has similarly called for the
administration to use its emergency
authority under the Federal Power Act
to keep coal plants open.
So far, though, the White House has
been reluctant to interfere in the mar-
ket. Robert Murray, chief executive of
Murray Energy, wrote in a letter shown
to the Associated Press that Mr Trump
had assured him he would use those
powers. But the administration has
since said it has no plans to do so.
A report on grid reliability from staff
at the energy department, which had
been widely expected to offer excuses
for subsidising coal, turned out to be
a damp squib when it was published
last week.
Paul Bailey of the American Coalition
for Clean Coal Electricity said he would
still have to work with policymakers to
value the important attributes of the
coal fleet.
The sting for coal producers is that the
Trump administration has also been
trying to encourage more oil and gas
production, again by cutting regulation
and by opening more areas up for
drilling.
For coal, perhaps the best hope would
be faltering gas supplies and soaring
prices. Shale gas does not make any
money, says Mr Quasha. Eventually
that will start to affect sentiment in the
capital markets, and in the long term it
will result in higher gas prices. And that
will help the coal business.
If he is right, the only way for the
Trump administration to succeed in one
of its most important energy policy
goals could be to fail in another.
SocGen still employs Ms Sindzingre
and Ms Bescond and has not been fined
or charged by US authorities in connec-
tion with Libor. Ms Sindzingre became
global co-head of fixed income, credit
and currencies in 2015. According to her
online profile, she is based in London.
Ms Besconds profile says she is global
head of short-term derivatives in Paris.
Robert Anello, partner at Grand Iason
& Anello, said Ms Sindzingres London
base could make a difference. The
chances of her getting extradited [to the
US] are greater than the French extra-
diting one of their own, he said. The
French laws will make it more difficult
though not necessarily impossible.
Mr Burlingame said: The safe thing
for them to assume is that therell be an
arrest warrant waiting for them as soon
as they leave France.
16
Banks
Slowing housing market strains Canadas lenders
Three months of price
falls follow 17 years of rises
after regulatory curbs
BEN MCLANNAHAN NEW YORK
Canadas biggest banks are stressing the
resilience of their mortgage portfolios,
saying they can cope with the effects of
regulatory curbs that have checked
rampant house price growth in the
worlds tenth largest economy.
Analytics make sense of record-breaking signings
Statistical models show that
paying a crazy sum can be
good for a clubs prospects
MURAD AHMED
LEISURE CORRESPONDENT
Antonio Conte, manager of English Pre-
mier League champions Chelsea, has
labelled spending on players as crazy,
with Europes top football clubs break-
ing all transfer records during the past
few weeks.
At the top of the market was Paris
Saint-Germains 222m signing of Ney-
mar from FC Barcelona, a deal beyond
calculation and beyond rationality,
according to Arsne Wenger, manager
of Arsenal.
However, as the summer transfer
window two months when teams can
acquire players draws to a close on
Thursday, analysis of the multibillion-
euro market suggests clubs could in fact
be behaving rationally.
According to Deloitte, more than
1.17bn has been splashed out this sum-
mer by the Premier League, Europes
wealthiest division with combined reve-
nues of about 4.5bn. Overall spending
during the transfer window has already
passed the 1.16bn spent by English
sides during the same period in 2016.
However, player spending has
remained roughly 20 per cent of reve-
nues, the consultancy adds. A 5.1bn
domestic broadcasting deal with Sky
and BT came into effect last season,
allowing Premier League clubs to ramp
up spending.
Clubs do not account for a transfer all
upfront, says Tim Bridge, senior man-
ager at Deloittes sports business group.
They spread the fee across the life of
the contract. So a 30m to 40m reve-
nue uplift in one year translates to
200m in transfer spend across a five-
year period.
The numbers have people asking
whether this is sustainable, he adds.
But on a proportionate level, we are
seeing it remain at a similar level.
Neymars transfer is an outlier. The
Brazilian forwards fee represents more
than 40 per cent of PSGs 521m of reve-
nues. However, the French club is bet-
ting that the global superstar will enable
it not just to achieve better perform-
ances in European competition but also
to secure higher income from commer-
cial and merchandising deals.
When it comes to assessing players
value, many top teams are adopting an
increasingly analytical approach.
A London-based football company
called 21st Club, which advised the new
owners of Everton and Swansea City on
Contracts & Tenders
Property prices had been going up in
Canada for the past 17 years, buoyed by
waves of immigration, low interest rates
and lax controls on foreign money. But
indices have begun to sag, in the wake of
policy packages from city, provincial
and national governments and after the
Bank of Canada raised rates for the first
time since 2010.
The benchmark price index in the
greater Toronto area slipped for a
third successive month in July, down
4.6 per cent, while sales transactions
Strategic moves
The 222m signing: Neymar in action for Paris St Germain this month; according to
the 21st Club model, they should have paid no more than 150m Benoit Tessier/Reuters
based models to assess signings.
1.17bn 20-25%
What Europes Proportion of a
richest division clubs revenues
has spent out of typically laid out
4.5bn revenues on a top signing
FINANCIAL TIMES
COMPANIES
dropped 40 per cent from the same
period a year earlier.
In light of drastic measures by poli-
cymakers the mood among investors
has grown cautious, said Anthony
Scilipoti, chief executive of Veritas, Can-
adas largest independent equity
research firm.
What you have to do is protect your-
self from the worst, he said. You
lighten your exposure to credit, you
lighten exposure to . . . banks.
Last week executives at two of the top
Premier League. Transfer market
recent takeovers, is among consultan-
cies that have developed statistically
Clubs including Liverpool, Arse-
nal, Manchester City and Bayern
Munich have invested in in-house ana-
lytics teams to judge potential signings.
The 21st Club model, which is used by
several European clubs, weighs various
factors to predict how many points a
player will potentially add to a teams
final total at the end of a season. These
include: the relative strength of the
teams a player is potentially moving
between, judged on past results; the
Legal Notices
six banks Royal Bank of Canada, and
Canadian Imperial Bank of Commerce
said that they had built defences able
to withstand a serious slump. At CIBC,
for example, chief risk officer Laura
Dottori-Attanasio noted that the banks
newly originated mortgages had lower
loan-to-value ratios than the national
average.
Analysts expect similar assurances
from executives at the remaining four
big banks this week, as they present fig-
ures for their third quarters ending in
Is Neymar value for money?
How football clubs assess the pros and cons of a big-money signing
Projected impact on league points total
-2 0 +2
Signing weakens Signing
team if swapped strengthens
into first XI team...
Lukaku is rated slightly
weaker than Zlatan, Lukaku
but better than all of
Man Uniteds other Sigurdsson
forwards. He would
provide 5.2 points more Vitolo
than Marcus Rashford Salah
if the choice was
between the pair Morata
as centre-forward
Ederson
Lacazette
Walker
Matic
Lindelf
Tolisso
Mendy
Paulinho
Andr Silva
Bernardeschi
Bernardo Silva
Davinson Sanchez
Rdiger
Bakayoko
Source: 21st Club player evaluation model
Graphic: John Burn-Murdoch / @jburnmurdoch
total minutes spent on the pitch (the
theory being that managers pick the
best possible side, so better footballers
play more often); the number of goals
and assists (when the player contrib-
utes to a move that ends with a goal
scored by a team-mate) in games.
Potential signings also need to be
compared with those they are replacing
as well as the squad they are joining.
Romelu Lukaku, a Belgium striker who
was signed by Manchester United
from Everton this summer for an esti-
mated 85m, is not predicted to earn
more points than Zlatan Ibrahimovic,
Pharmaceuticals
Pfizer to test drug for silent liver disease
DAVID CROW NEW YORK
Pfizer has started testing an experi-
mental medicine for a deadly liver dis-
ease in mid-stage clinical trials, as
pharmaceutical companies race to
develop medicines for the untreatable
silent killer.
The drugmaker is one of a host of com-
panies trying to find a medicine for non-
alcoholic steatohepatitis or Nash, an
advanced form of fatty liver disease that
causes scarring and inflammation.
It is estimated that the condition,
which tends to be symptomless until the
very late stages, affects more than 16m
in the US. The most serious cases result
in fatal cirrhosis and liver cancer.
Pfizers move comes amid competi-
tion to develop medicines for a disease
that has drawn hundreds of millions of
dollars of investment over the past 12
months from companies such as Aller-
gan, Bristol-Myers Squibb and Novartis.
Their interest in Nash has been
fuelled by predictions that the preva-
lence of the disease, which is closely
linked to obesity and diabetes, will
July. Bank of Montreal and Bank of Nova
Scotia report on Tuesday, National Bank
of Canada on Wednesday and Toronto-
Dominion, the biggest in the country,
brings down the curtain on Thursday.
Bulls continue to argue that Canadas
housing market has features that guard
against a serious collapse.
But bears say prices have become too
far detached from fundamentals, noting
that Canadas household debt to income
ratio is about 167 per cent, among the
highest levels in the developed world.
+4 +6
Extent to which player
strengthens or weakens
first XI relative to other
players at the club
Neymar
Bonucci
Transfer
fee
Neymar could be
worth 2.6 more points
than Angel di Maria
over the course of the
season, or 6.4 more
than Julian Draxler
Does Lacazette strengthen
Arsenals starting line-up?
That depends whether
he is considered a
replacement for Alexis
or for someone like
Danny Welbeck
Man Citys squad is packed with
attacking talent Bernardo Silva
is not an improvement on either
Kevin de Bruyne or David Silva
but the Portuguese adds depth,
versatility and potential to the squad
Uniteds main striker last season. But he
is a significant improvement on the
clubs other attacking options, such as
Anthony Martial and Marcus Rashford.
Furthermore Lukakus transfer rep-
resents about 12 per cent of the clubs
revenues a lower percentage than
many rivals signings.
Its a very affordable transfer for
Manchester United, says Omar Chaud-
huri, head of football intelligence at
21st Club.
They have got him probably on a
five-year contract; they have locked
him in during the best years of his
increase markedly. Some analysts are
predicting that the market for success-
ful drugs could be worth more than
$8bn a year at its peak.
Morris Birnbaum, the top scientist in
Pfizers cardiovascular and metabolic
unit, said the drug was designed to treat
the earliest stage of the disease when fat
starts to build up in the liver. Accumu-
lation of fat in the liver is an early step,
but we subscribe to the view that if you
can reverse it, you can prevent late-
stage cirrhosis and cancer, he said.
The medicine, a so-called ACC-inhibi-
tor, faces competition from Gilead, the
biotech group, which recently published
data from a small study showing that its
rival medicine reduced liver fat content
by a median of 43 per cent after 12
weeks. Gilead is expected to release data
We subscribe to the view
that if you can reverse it,
you can prevent late-stage
cirrhosis and cancer
Monday 28 August 2017
David Madani, a former BoC official
now at Capital Economics in Toronto,
expects a drop in prices of 20 to 40 per
cent over the next five years, perhaps
more, depending on the pace of income
growth over that period.
Everyone agrees its a bubble; now
the question is, how it ends, he said.
People are talking about soft land-
ings and hard landings but soft landings
are a bit like the Loch Ness monster.
Everyone talks about them but no one
has actually seen one.
career. It appears to be a good deal.
A player of Neymars quality is pro-
jected to bring an additional 6.4 league
points for PSG this season. Such gains
matter. PSG finished eight points
behind Monaco in Frances Ligue 1 last
season. The signing is therefore likely to
have substantially closed the gap
between the Parisian team and its main
domestic rival.
Players transfer values can also be
estimated using 21st Clubs model.
Based on historical prices, top-of-the-
market signings typically equate to
about 20-25 per cent of a clubs reve-
nues. That suggests PSG should have
paid no more than 150m for Neymar
but were forced to spend more in order
to trigger his buyout clause.
Clearly his impact is beyond just
football, says Mr Chaudhuri. It is part
of a bigger statement made around try-
ing to make PSG a superclub of the level
of Bayern and Barcelona and Manches-
ter United.
His actual performance, of course,
Clearly Neymars impact
is beyond just football
it is part of trying
to make PSG a superclub
will have a lot riding on it. In terms of
on-field impact, you cant really justify
220m with five points a season. But as
a wider play, its harder to say.
Some less costly signings can be con-
sidered poorer in more ways than
one. Chelsea spent 40m on Timou
Bakayoko from Monaco. According to
21st Club analysis, however, the new
defensive midfielder is no better than
the clubs other options in the same
position.
One reason Bakayoko fares badly is
that the French champions, although
they had one of the best attacking sides
in Europe last season, have not proved a
strong defensive team an area where
Chelsea excel.
According to Deloitte, the transfer
market is relatively efficient in assessing
players worth. Im certainly in no posi-
tion to tell Arsne Wenger and Antonio
Conte to move with the times, says Mr
Bridge.
But . . . clubs will pay the values they
have paid according to their need or
desire to fill that position with the best
available player. Im sure there are bar-
gains out there still.
Finding the right addition to a team
will never be just a matter of statistics,
he adds. Its the responsibility of clubs
to go and scout players and try and find
the best value.
from its own mid-stage, or Phase 2,
study later this year.
We know theres a competitor a bit
ahead of us, but were optimistic we will
succeed, said Dr Birnbaum.
He added that a successful treatment
would probably involve a combination
of drugs that targeted not just fat accu-
mulation, but also inflammation and
scarring. To that end, he said Pfizer was
hoping to start human testing on a fur-
ther six drugs over the next two years.
Nash is on course to become the lead-
ing cause of cirrhosis and liver cancer, in
part because of rising prevalence but
also because companies such as Gilead
have had remarkable success develop-
ing medicines that can effectively cure
hepatitis C.
However, forecasts for the size of the
potential market for Nash medicines
vary significantly and some analysts are
sceptical that the drugs will achieve
blockbuster status. A recent survey by
investment bank Leerink found that
just 40 per cent of investors thought the
market for the medicines would be
worth over $5bn by 2022.
Monday 28 August 2017 FINANCIAL TIMES 17
18 FINANCIAL TIMES Monday 28 August 2017

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.09% -0.08% -0.14% -0.101% -0.29%

No change
0.17% 0.14% 0.51% 1.20% 0.28% 0.508% 0.625% 0.40%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jul 26 - - Index All World Jul 26 - Aug 25 Index All World Jul 26 - Aug 25 Index All World Jul 26 - Aug 25 Index All World Jul 26 - Aug 25 Index All World Jul 26 - Aug 25 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,475.42 15,171.39 2,443.24
12,212.04 12,167.94 20,050.16
15,055.99 7,443.01 7,401.46 2,378.51
2,443.05 19,452.61
Day 0.17% Month -1.09% Year 12.30% Day -0.13% Month -0.96% Year 2.91% Day -0.08% Month -0.31% Year 8.72% Day -0.11% Month -0.79% Year 15.56% Day 0.51% Month -2.62% Year 17.20% Day 0.11% Month -2.98% Year 16.38%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
51,257.36 51,355.15 1,501.05 27,848.16 3,336.72
6,382.19
10,603.40
6,265.64 1,470.30 10,345.30 26,941.02 3,259.57
Day -0.09% Month -2.26% Year 20.08% Day -0.22% Month -0.69% Year 7.59% Day -0.14% Month -1.68% Year 9.38% Day -0.12% Month -0.97% Year 19.52% Day 1.20% Month 3.73% Year 22.03% Day -0.38% Month -1.55% Year 13.59%

Dow Jones Industrial New York Bovespa So Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
71,073.65 3,489.14
5,186.95 21,746.50 32,228.27
21,796.55 21,813.67 21,577.56 3,397.18 31,596.06
5,104.33
65,497.13
Day 0.14% Month 1.40% Year 18.03% Day -0.08% Month 8.23% Year 23.13% Day -0.17% Month -0.46% Year 15.08% Day 0.08% Month 1.35% Year 30.13% Day 1.84% Month 2.49% Year 7.96% Day 0.09% Month -1.35% Year 12.88%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 23509.87 23392.50 Cyprus CSE M&P Gen 76.93 76.84 Italy FTSE Italia All-Share 23972.96 23956.74 Philippines Manila Comp 8015.14 8004.93 Taiwan Weighted Pr 10515.51 10488.96 Cross-Border DJ Global Titans ($) 277.79 277.21
Australia All Ordinaries 5803.40 5801.70 Czech RepublicPX 1036.56 1034.15 FTSE Italia Mid Cap 40307.68 40286.20 Poland Wig 64135.52 63886.54 Thailand Bangkok SET 1575.85 1575.96 Euro Stoxx 50 (Eur) 3438.55 3444.73
S&P/ASX 200 5743.90 5745.50 Denmark OMXC Copenahgen 20 1010.12 1011.63 FTSE MIB 21746.50 21729.87 Portugal PSI 20 5165.92 5196.28 Turkey BIST 100 109153.91 108952.73 Euronext 100 ID 992.50 994.89
S&P/ASX 200 Res 3585.20 3575.20 Egypt EGX 30 12926.40 12996.20 Japan 2nd Section 6585.71 6577.11 PSI General 2872.05 2887.12 UAE Abu Dhabi General Index 4493.81 4487.41 FTSE 4Good Global ($) 6169.64 6157.57
Austria ATX 3231.20 3205.09 Estonia OMX Tallinn 1277.47 1274.43 Nikkei 225 19452.61 19353.77 Romania BET Index 8378.93 8348.76 UK FT 30 3201.90 3211.60 FTSE All World 313.82 312.94
Belgium BEL 20 3905.71 3917.99 Finland OMX Helsinki General 9488.16 9465.83 S&P Topix 150 1285.82 1281.80 Russia Micex Index 1979.14 1973.50 FTSE 100 7401.46 7407.06 FTSE E300 1470.30 1472.37
BEL Mid 6429.53 6375.87 France CAC 40 5104.33 5113.12 Topix 1596.99 1592.20 RTX 1060.49 1049.96 FTSE 4Good UK 6619.15 6625.15 FTSE Eurotop 100 2867.57 2870.64
Brazil Bovespa 71073.65 71132.80 SBF 120 4078.60 4086.05 Jordan Amman SE 2105.71 2110.20 Saudi-Arabia TADAWUL All Share Index 7245.66 7263.75 FTSE All Share 4054.63 4058.44 FTSE Global 100 ($) 1527.56 1525.99
Canada S&P/TSX 60 886.34 887.75 Germany M-DAX 24452.30 24431.27 Kenya NSE 20 4069.20 4101.67 Singapore FTSE Straits Times 3259.57 3272.16 FTSE techMARK 100 4392.38 4382.86 FTSE Gold Min ($) 1544.08 1535.54
S&P/TSX Comp 15055.99 15076.16 TecDAX 2188.25 2173.22 Kuwait KSX Market Index 6885.17 6922.48 Slovakia SAX 329.87 329.87 USA DJ Composite 7464.85 7429.05 FTSE Latibex Top (Eur) 4236.50 4231.50
S&P/TSX Div Met & Min 798.07 769.54 XETRA Dax 12167.94 12180.83 Latvia OMX Riga 1024.81 1024.27 Slovenia SBI TOP 826.86 828.68 DJ Industrial 21813.67 21783.40 FTSE Multinationals ($) 1783.74 1784.77
Chile IGPA Gen 25842.31 25726.00 Greece Athens Gen 835.30 835.55 Lithuania OMX Vilnius 653.42 653.52 South Africa FTSE/JSE All Share 56655.88 56588.99 DJ Transport 9133.75 9021.12 FTSE World ($) 554.36 552.92
China FTSE A200 9854.24 9682.31 FTSE/ASE 20 2196.19 2197.93 Luxembourg LuxX 1667.85 1663.23 FTSE/JSE Res 20 35105.01 34885.55 DJ Utilities 746.48 743.25 FTSEurofirst 100 (Eur) 4131.97 4136.57
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 27848.16 27518.60 Malaysia FTSE Bursa KLCI 1769.17 1775.50 FTSE/JSE Top 40 50175.33 50101.48 Nasdaq 100 5822.53 5834.44 FTSEurofirst 80 (Eur) 4771.11 4778.21
Shanghai A 3489.14 3426.02 HS China Enterprise 11288.36 11051.00 Mexico IPC 51355.15 51470.06 South Korea Kospi 2378.51 2375.84 Nasdaq Cmp 6265.64 6271.33 MSCI ACWI Fr ($) 473.81 473.99
Shanghai B 339.15 336.44 HSCC Red Chip 4313.35 4307.64 Morocco MASI 12202.67 12174.39 Kospi 200 311.21 310.73 NYSE Comp 11812.03 11773.80 MSCI All World ($) 1939.65 1942.15
Shanghai Comp 3331.52 3271.36 Hungary Bux 38011.33 37954.41 Netherlands AEX 517.42 519.10 Spain IBEX 35 10345.30 10357.40 S&P 500 2443.05 2438.97 MSCI Europe (Eur) 1562.36 1560.63
Shenzhen A 1997.79 1977.18 India BSE Sensex 31596.06 31568.01 AEX All Share 783.41 785.36 Sri Lanka CSE All Share 6409.37 6382.54 Wilshire 5000 25334.83 25283.88 MSCI Pacific ($) 2624.08 2637.00
Shenzhen B 1153.90 1153.30 Nifty 500 8605.75 8585.00 New Zealand NZX 50 7857.81 7868.41 Sweden OMX Stockholm 30 1540.82 1537.99 Venezuela IBC 199748.94 198170.53 S&P Euro (Eur) 1587.57 1590.24
Colombia COLCAP 1477.41 1481.24 Indonesia Jakarta Comp 5915.36 5894.12 Nigeria SE All Share 36575.86 37059.21 OMX Stockholm AS 554.29 552.57 Vietnam VNI 771.63 771.63 S&P Europe 350 (Eur) 1512.78 1514.66
Croatia CROBEX 1901.35 1903.47 Ireland ISEQ Overall 6643.52 6715.61 Norway Oslo All Share 805.69 805.27 Switzerland SMI Index 8906.18 8943.04 S&P Global 1200 ($) 2175.02 2166.92
Israel Tel Aviv 100 12.64 12.63 Pakistan KSE 100 42641.75 42268.62 Stoxx 50 (Eur) 3042.38 3046.07
(c) Closed. (u) Unavaliable. Correction. Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Aug 25 %Chg %Chg Aug 25 %Chg %Chg Aug 25 %Chg %Chg Aug 25 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 40.1 159.86 0.59 Bhp Billiton 167.5 1437.00 20.00 Nestle N 324.1 70.84 -0.75 Mitsubishi Ufj Fin,. 339.1 664.30 4.30 Antofagasta 1022.00 8.3 51.4 Hikma Pharmaceuticals 1288.00 15.1 -32.0 Stock Spirits 234.75 12.2 29.9 Industrial Metals 3462.38 9.7 53.9
Amazon.com 31.2 945.26 -7.19 Rio Tinto 164.6 3661.00 15.50 Daimler Ag Na O.n. 272.1 62.17 0.52 Toyota Motor 288.6 6158.00 51.00 Rio Tinto 3661.00 6.8 15.9 Computacenter 1018.00 15.0 27.3 Hostelworld 316.00 9.7 41.2 Mining 17405.32 5.0 17.8
Facebook 20.9 166.32 -1.42 British American Tobacco 133.4 4835.00 -5.00 Novartis N 233.6 70.49 -0.22 Softbank . 272.9 8835.00 51.00 Micro Focus Int 2314.00 6.4 6.2 Nmc Health 2670.00 14.6 72.9 Headlam 618.50 8.4 26.8 Food & Drug Retailers 3002.04 3.1 -2.6
Broadcom 17.0 245.54 -9.51 Glencore 114.8 352.80 -1.10 Unicredit 187.4 17.78 0.24 Sumitomo Mitsui Fin,. 204.1 4056.00 28.00 Bhp Billiton 1437.00 6.4 10.0 Kaz Minerals 816.00 14.0 128.4 Communisis 52.50 8.2 21.0 Software & Computer Services 2102.81 2.8 11.1
Ulta Beauty 16.3 212.36 -21.35 Hsbc Holdings 114.0 742.80 0.30 Intesa Sanpaolo 173.7 2.84 0.00 Fanuc 174.4 21085.00 55.00 Anglo American 1339.50 4.6 15.5 Evraz 291.40 12.5 31.4 Ite 169.00 8.0 9.6 Health Care Equip.& Services 8396.52 2.8 14.7
Nvidia 14.4 163.81 -1.38 Wpp 105.7 1437.00 -25.00 Bayer Ag Na O.n. 157.8 109.00 1.30 Mizuho Fin,. 159.5 187.90 0.90 Mediclinic Int 753.00 4.5 -2.3 Vedanta Resources 822.00 9.0 -6.5 Cambian 235.00 7.3 89.9 General Industrials 6299.42 2.2 14.1
Tesla 11.9 348.05 -4.88 Astrazeneca 92.7 4498.50 -41.00 Total 137.8 43.33 -0.12 Sony 156.4 4199.00 31.00 Tesco 184.20 4.3 -10.9 Coats 79.50 7.4 45.9 Petropavlovsk 6.75 6.0 -2.9 Tobacco 53193.92 2.0 0.8
Alphabet 11.0 930.50 -6.39 Royal Dutch Shell 81.7 2142.50 8.00 Arcelormittal Sa 134.5 22.31 0.11 Yamato Holdings Co., 142.8 2368.00 123.50 Persimmon 2616.00 3.8 47.3 Sophos 510.50 6.9 95.1 Premier Oil 56.00 5.7 -24.3 Construction & Materials 6665.05 1.9 -1.9
J P Morgan Chase & Co 10.6 91.89 0.37 Shire 79.8 3750.00 55.00 Ing Groep N.v. 132.3 14.96 -0.06 Nissan Motor Co., 141.1 1082.50 0.00 Standard Chartered 777.10 3.4 17.1 Sanne 779.50 6.9 33.2 Kcom 98.25 5.6 3.7 Household Goods 18695.29 1.8 16.9
Bank Of America 10.3 23.77 -0.07 Glaxosmithkline 75.3 1519.50 -3.50 Adidas Ag Na O.n. 132.3 187.70 -0.90 Fast Retailing Co., 140.2 31740.00 160.00 Morrison (wm) Supermarkets 251.40 3.2 9.0 Petra Diamonds 97.60 6.9 -37.7 Moss Bros 97.00 5.4 -2.0 Automobiles & Parts 7505.19 1.7 -3.2
Old Mutual 210.10 3.1 1.4 Fisher (james) & Sons 1552.00 6.5 -0.5 Blackrock World Mining Trust 380.75 5.3 13.2 Pharmaceuticals & Biotech. 12804.64 1.5 -4.7
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Fresnillo 1580.00 3.1 29.4 Vesuvius 581.00 6.1 47.0 Blackrock Latin American Investment Trust 476.63 4.8 21.0 Forestry & Paper 22576.77 1.5 26.0
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Urban Outfitters 21.62 1.62 8.10 Provident Fin 916.00 168.00 22.46 Seadrill 0.16 0.01 4.20 Yamato Holdings Co., 2368.00 123.50 5.50 Provident Fin 916.00 -50.5 -67.8 Dixons Carphone 182.50 -25.7 -48.5 Allied Minds 117.50 -24.2 -75.0 Media 7278.46 -2.3 -7.1
American Airlines 45.25 2.33 5.43 Computacenter 1018.00 137.00 15.55 Erste Bank Ag 36.45 0.89 2.50 Konami 6010.00 310.00 5.44 Wpp 1437.00 -8.1 -20.9 Ip 115.50 -14.1 -30.5 Nanoco 27.50 -16.7 -38.9 General Retailers 2398.42 -2.3 -7.3
Autodesk 114.97 4.36 3.94 Carillion 49.72 2.73 5.81 Atlas Copco Ab Ser. B 29.93 0.73 2.49 Hitachi Construction Machinery Co., 3095.00 147.00 4.99 Easyjet 1216.00 -5.7 21.0 Aa 167.00 -10.3 -39.7 Enquest 26.00 -14.8 -38.1 Electricity 8287.25 -2.0 -10.1
Southwest Airlines 52.68 1.97 3.88 Petra Diamonds 97.60 5.10 5.51 Vivendi 19.38 0.44 2.30 Ube Industries, 316.00 14.00 4.64 Paddy Power Betfair 6805.00 -5.2 -22.5 Greencore 199.90 -9.5 -18.9 Countrywide 138.00 -11.5 -21.7 Real Estate & Investment Servic 2623.62 -1.1 6.3
Signet Jewelers 62.68 2.14 3.53 Greencore 199.90 9.90 5.21 Sandvik Ab 13.99 0.25 1.84 Sumitomo Heavy Industries, 823.00 34.00 4.31 Itv 160.90 -3.5 -22.0 Jd Sports Fashion 310.90 -9.4 -2.2 Imagination 122.25 -9.6 -51.5 General Financial 10703.41 -0.7 15.3
Whitbread 3677.00 -3.1 -2.6 Cineworld 648.00 -6.6 14.7 Interserve 170.50 -7.6 -50.1 Fixed Line Telecommunication 3360.85 -0.7 -19.5
Downs Downs Downs Downs
G4s 290.00 -2.8 23.4 Restaurant 322.90 -6.4 -0.5 Huntsworth 71.50 -7.4 88.2 Real Estate Investment Trusts 2928.29 -0.6 0.7
Ulta Beauty 212.36 -21.35 -9.14 Hunting 402.10 -25.10 -5.88 Carrefour 19.73 -0.43 -2.16 Yaskawa Electric 3175.00 -65.00 -2.01
Sse 1404.00 -2.3 -9.6 Pets At Home 176.40 -6.4 -26.2 Helical 317.50 -7.4 7.7 Travel & Leisure 9529.86 -0.6 9.1
Broadcom 245.54 -9.51 -3.73 Restaurant 322.90 -17.50 -5.14 Svenska Cellulosa Ab Sca Ser. B 7.09 -0.13 -1.75 Taisei 1068.00 -21.00 -1.93
Centrica 197.10 -2.2 -15.8 Hill & Smith Holdings 1279.00 -4.7 6.7 Morgan Sindall 1250.00 -4.9 67.8 Oil Equipment & Services 10743.26 -0.3 -34.0
Tripadvisor 41.72 -1.60 -3.69 Unite 664.00 -18.00 -2.64 Casino Guichard 49.92 -0.86 -1.68 Kyowa Hakko Kirin Co., 1835.00 -25.00 -1.34
Intercontinental Hotels 3852.00 -1.8 1.4 Dunelm 602.50 -4.2 -25.1 Gem Diamonds 81.75 -4.4 -25.7 Support Services 7750.22 -0.1 10.3
Nrg Energy 24.58 -0.85 -3.34 Crh 2720.00 -73.00 -2.61 Oci 16.09 -0.27 -1.62 Toho Z Co., 515.00 -7.00 -1.34
Admiral 1932.00 -1.7 5.7 Hunting 402.10 -4.1 -35.9 Foxtons 88.00 -4.3 -13.7 Nonlife Insurance 3162.58 0.2 15.1
Jd.com 40.87 -1.20 -2.85 Ip 115.50 -3.00 -2.53 Adecco N 61.22 -0.88 -1.42 Kirin Holdings , 2434.00 -32.50 -1.32
Informa 686.50 -1.5 1.0 Telecom Plus 1107.00 -4.0 -5.9 Severfield 65.88 -4.2 -12.2 Food Producers 8675.47 0.2 8.0
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Aug 25 Currency Mid Change Mid Change Mid Change Aug 25 Currency Mid Change Mid Change Mid Change Aug 25 Currency Mid Change Mid Change Mid Change Aug 25 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 17.2150 0.0290 20.4376 0.1496 22.1703 0.1747 Indonesia Indonesian Rupiah 13346.0000 -3.0000 15844.3452 85.8659 17187.6235 102.8643 Poland Polish Zloty 3.5788 -0.0345 4.2487 -0.0168 4.6089 -0.0156 ..Three Month 0.7769 -0.0048 0.9217 -0.0005 - -
Australia Australian Dollar 1.2595 -0.0058 1.4952 0.0016 1.6220 0.0026 Israel Israeli Shekel 3.5866 -0.0069 4.2581 0.0159 4.6191 0.0199 Romania Romanian Leu 3.8744 -0.0085 4.5997 0.0160 4.9897 0.0202 ..One Year 0.7781 -0.0049 0.9210 -0.0005 - -
Bahrain Bahrainin Dinar 0.3771 -0.0001 0.4476 0.0024 0.4856 0.0029 Japan Japanese Yen 109.2550 -0.1100 129.7072 0.6021 140.7037 0.7326 Russia Russian Ruble 58.8250 -0.3400 69.8369 -0.0073 75.7576 0.0351 United States United States Dollar - - 1.1872 0.0067 1.2878 0.0080
Bolivia Bolivian Boliviano 6.9100 - 8.2035 0.0463 8.8990 0.0552 ..One Month 109.2549 -0.1103 129.7073 0.6021 140.7036 0.7325 Saudi Arabia Saudi Riyal 3.7502 -0.0001 4.4522 0.0250 4.8297 0.0299 ..One Month - - 1.1870 -0.0927 1.2880 0.0080
Brazil Brazilian Real 3.1436 0.0034 3.7320 0.0251 4.0484 0.0295 ..Three Month 109.2545 -0.1109 129.7073 0.6022 140.7035 0.7322 Singapore Singapore Dollar 1.3558 -0.0056 1.6096 0.0024 1.7461 0.0036 ..Three Month - - 1.1866 -0.0927 1.2882 0.0080
Canada Canadian Dollar 1.2496 -0.0027 1.4835 0.0052 1.6093 0.0066 ..One Year 109.2528 -0.1143 129.7073 0.6023 140.7036 0.7315 South Africa South African Rand 13.0763 -0.1125 15.5241 -0.0452 16.8402 -0.0395 ..One Year - - 1.1847 -0.0927 1.2894 0.0080
Chile Chilean Peso 636.3400 -1.9900 755.4612 1.9137 819.5084 2.5401 Kenya Kenyan Shilling 103.2000 -0.0500 122.5188 0.6323 132.9058 0.7610 South Korea South Korean Won 1128.2500 0.2500 1339.4554 7.8533 1453.0130 9.3393 Venezuela Venezuelan Bolivar Fuerte 10.0993 0.1293 11.9898 0.2202 13.0063 0.2462
China Chinese Yuan 6.6645 0.0038 7.9121 0.0491 8.5829 0.0581 Kuwait Kuwaiti Dinar 0.3019 -0.0001 0.3584 0.0020 0.3888 0.0023 Sweden Swedish Krona 7.9979 -0.0575 9.4951 -0.0143 10.3001 -0.0097 Vietnam Vietnamese Dong 22734.5000 -4.0000 26990.4076 147.5804 29278.6330 176.6334
Colombia Colombian Peso 2930.9850 -47.2550 3479.6576 -36.1497 3774.6603 -37.0489 Malaysia Malaysian Ringgit 4.2725 -0.0070 5.0723 0.0204 5.5023 0.0252 Switzerland Swiss Franc 0.9584 -0.0062 1.1378 -0.0009 1.2342 -0.0003 European Union Euro 0.8423 -0.0048 - - 1.0848 0.0006
Costa Rica Costa Rican Colon 574.9300 0.0150 682.5553 3.8692 740.4216 4.6152 Mexico Mexican Peson 17.6173 -0.0786 20.9152 0.0252 22.6883 0.0402 Taiwan New Taiwan Dollar 30.2350 -0.0295 35.8949 0.1677 38.9380 0.2039 ..One Month 0.8421 -0.0048 - - 1.0847 0.0006
Czech Republic Czech Koruna 21.9866 -0.1299 26.1024 -0.0061 28.3154 0.0095 New Zealand New Zealand Dollar 1.3801 -0.0054 1.6384 0.0029 1.7773 0.0042 Thailand Thai Baht 33.3050 -0.0400 39.5396 0.1759 42.8917 0.2150 ..Three Month 0.8417 -0.0048 - - 1.0846 0.0006
Denmark Danish Krone 6.2663 -0.0343 7.4393 0.0014 8.0700 0.0061 Nigeria Nigerian Naira 359.5000 - 426.7974 2.4083 462.9809 2.8739 Tunisia Tunisian Dinar 2.4309 -0.0178 2.8860 -0.0047 3.1306 -0.0033 ..One Year 0.8398 -0.0048 - - 1.0840 0.0006
Egypt Egyptian Pound 17.7040 0.0330 21.0181 0.1576 22.8000 0.1838 Norway Norwegian Krone 7.7737 -0.0653 9.2290 -0.0250 10.0114 -0.0214 Turkey Turkish Lira 3.4508 -0.0321 4.0968 -0.0148 4.4441 -0.0135
Hong Kong Hong Kong Dollar 7.8218 -0.0034 9.2861 0.0484 10.0733 0.0582 Pakistan Pakistani Rupee 105.3750 - 125.1009 0.7059 135.7068 0.8424 United Arab Emirates UAE Dirham 3.6731 0.0002 4.3607 0.0248 4.7304 0.0296
Hungary Hungarian Forint 256.8270 -0.9155 304.9043 0.6398 330.7538 0.8814 Peru Peruvian Nuevo Sol 3.2360 - 3.8418 0.0217 4.1675 0.0259 United Kingdom Pound Sterling 0.7765 -0.0049 0.9218 -0.0005 - -
India Indian Rupee 64.0375 - 76.0251 0.4290 82.4705 0.5119 Philippines Philippine Peso 51.0925 0.0725 60.6569 0.4279 65.7993 0.5012 ..One Month 0.7766 -0.0049 0.9218 -0.0005 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Aug 25 Aug 24 Aug 23 Aug 22 Aug 21 Yr Ago High Low Year to date percentage changes Closing Week's Closing Week's
Strlg Day's Euro Strlg Strlg Year Div P/E X/D Total FT 30 3201.90 3211.60 3207.90 3225.60 3193.90 0.00 3391.10 3060.90 Industrial Metals & 54.03 FTSE SmallCap Index 10.30 Industrial Transport 0.44 FTSE 100 Price Change FTSE 100 Price Change
Aug 25 chge% Index Aug 24 Aug 23 ago yield% Cover ratio adj Return FT 30 Div Yield 1.78 1.78 1.79 1.78 1.80 0.00 3.93 2.74 Personal Goods 32.76 Support Services 9.79 Construct & Material 0.27 3I Group PLC 951.00 10.50 London Stock Exchange Group PLC 3976 32.00
FTSE 100 (100) 7401.46 -0.08 6256.57 7407.06 7382.65 6838.05 3.87 1.04 24.93 228.27 6224.28 P/E Ratio net 25.00 25.08 24.90 25.08 24.85 0.00 19.44 14.26 Leisure Goods 27.03 Life Insurance 9.52 Consumer Services -0.30 Admiral Group PLC 1932 -33.00 Marks And Spencer Group PLC 312.90 -4.20
FTSE 250 (250) 19671.33 -0.20 16628.50 19710.30 19743.22 17930.79 2.68 1.70 22.01 354.31 14339.39 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Forestry & Paper 25.81 Industrials 9.46 Telecommunications -1.32 Anglo American PLC 1339.5 59.50 Mediclinic International PLC 753.00 32.50
FTSE 250 ex Inv Co (206) 21026.20 -0.19 17773.80 21065.55 21109.07 19345.38 2.74 1.73 21.05 387.65 15639.05 FT 30 hourly changes Beverages 23.53 Travel & Leisure 9.20 Gas Water & Multi -2.11 Antofagasta PLC 1022 78.50 Merlin Entertainments PLC 460.50 0.00
FTSE 350 Higher Yield (117) 3763.00 0.02 3180.93 3762.43 3749.11 3544.21 5.16 0.89 21.80 146.20 6670.27 8 9 10 11 12 13 14 15 16 High Low Electronic & Elec Eq 21.22 Financials 9.14 Food & Drug Retailer -2.39 Ashtead Group PLC 1586 15.00 Micro Focus International PLC 2314 140.00
FTSE 350 (350) 4107.77 -0.10 3472.36 4111.73 4101.66 3786.33 3.67 1.12 24.38 117.65 6933.79 3211.6 3210.2 3211 3212.1 3214.3 3212.5 3211.2 3212.5 3204.8 3215.1 3201.9 Mining 17.33 Mobile Telecomms 9.07 Health Care -2.78 Associated British Foods PLC 3184 44.00 Mondi PLC 2096 28.00
FTSE 350 Lower Yield (233) 4068.81 -0.22 3439.43 4077.66 4072.48 3658.42 2.06 1.74 27.98 69.41 4479.74 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Basic Materials 16.78 FTSE 250 Index 8.82 Automobiles & Parts -3.23 Astrazeneca PLC 4498.5 51.50 Morrison (Wm) Supermarkets PLC 251.40 7.80
FTSE 350 ex Investment Trusts (305) 4070.95 -0.09 3441.24 4074.72 4064.59 3759.98 3.71 1.11 24.21 118.17 3540.42 Household Goods & Ho 16.67 Technology 8.76 Utilities -3.86 Aviva PLC 521.50 -0.50 National Grid PLC 970.20 9.90
FTSE AIM All-Share (797) 1005.21 0.02 849.72 1004.98 1003.20 792.81 1.63 0.85 72.47 7.64 1107.65 Financial Services 15.18 Food Producers 7.73 Pharmace & Biotech -4.81
FTSE All-Share (636) 4054.63 -0.09 3427.45 4058.44 4048.99 3728.71 3.64 1.13 24.38 114.49 6918.86 FX: EFFECTIVE INDICES Nonlife Insurance 14.71 Banks 7.61 Media -6.89
Babcock International Group PLC 803.00 -12.00 Next PLC 4143 -7.00
Bae Systems PLC 599.00 15.50 Old Mutual PLC 210.10 6.40
FTSE All-Share - Aerospace & Defense (9) 5367.17 -0.39 4536.96 5388.13 5371.26 4807.97 2.24 0.92 48.70 66.44 5766.99 Health Care Eq & Srv 14.40 Real Est Invest & Se 5.52 General Retailers -7.00
Aug 24 Aug 23 Mnth Ago Aug 25 Aug 24 Mnth Ago Barclays PLC 194.30 -1.35 Paddy Power Betfair PLC 6805 -375.00
FTSE All-Share - Automobiles & Parts (1) 7543.65 0.25 6376.77 7524.85 7564.80 7268.69 2.80 3.52 10.13 211.50 7342.17 Industrial Eng 12.97 FTSE All{HY-}Share Index 4.68 Oil & Gas Producers -8.79 Barratt Developments PLC 613.00 3.00 Pearson PLC 621.50 16.50
FTSE All-Share - Banks (11) 4396.44 0.07 3716.38 4393.27 4387.48 3455.11 4.05 0.84 29.56 148.38 3298.95 Australia 96.28 96.10 96.79 Sweden 80.13 79.92 78.84 Consumer Goods 12.93 Chemicals 4.24 Oil & Gas -9.42 Bhp Billiton PLC 1437 86.00 Persimmon PLC 2616 95.00
FTSE All-Share - Basic Materials (30) 5899.62 0.27 4987.05 5883.74 5850.53 4185.82 2.76 2.07 17.48 149.56 6091.09 Canada 93.10 92.77 93.22 Switzerland 155.59 155.43 159.91 Equity Invest Instr 12.04 FTSE 100 Index 3.62 Electricity -10.27 BP PLC 445.50 5.50 Provident Financial PLC 916.00 -936.00
FTSE All-Share - Beverages (5) 20712.99 -0.10 17509.04 20734.25 20795.69 17248.72 2.38 1.65 25.50 478.02 14812.46 Denmark 109.76 109.84 109.47 UK 74.62 74.58 76.41 Software & Comp Serv 11.48 NON FINANCIALS Index 3.14 Tech Hardware & Eq -14.21 British American Tobacco PLC 4835 83.00 Prudential PLC 1821.5 10.50
FTSE All-Share - Chemicals (8) 13649.26 -0.24 11537.94 13681.73 13655.12 13016.18 2.28 2.31 18.96 220.59 12261.07 Japan 138.04 138.43 136.20 USA 98.97 98.94 99.73 Aerospace & Defense 11.46 Real Est Invest & Tr 0.87 Fixed Line Telecomms -19.22 British Land Company PLC 603.00 -8.00 Randgold Resources LD 7570 75.00
FTSE All-Small Index (382) 3951.95 -0.01 3340.65 3952.44 3955.36 3399.54 2.80 1.44 24.80 70.18 7295.16 New Zealand 117.14 117.01 121.32 Euro 94.88 94.97 93.51 Tobacco 0.72 Oil Equipment & Serv -30.58 Bt Group PLC 290.15 -2.35 Reckitt Benckiser Group PLC 7381 124.00
FTSE All-Small ex Inv Co Index (199) 3723.05 -0.16 3147.16 3729.21 3738.03 3266.01 2.97 1.79 18.76 67.02 7126.27 Norway 89.93 89.52 88.82
Bunzl PLC 2332 26.00 Relx PLC 1667 -3.00
FTSE Fledgling Index (96) 10407.54 0.22 8797.67 10384.75 10366.28 8241.70 2.91 0.98 35.10 185.55 19595.36 Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Burberry Group PLC 1786 40.00 Rentokil Initial PLC 294.40 -1.10
FTSE Fledgling ex Inv Co Index (46) 15132.69 0.44 12791.91 15066.31 14996.98 10835.85 3.68 0.97 27.92 260.05 27775.05 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Carnival PLC 5320 30.00 Rio Tinto PLC 3661 231.50
FTSE SmallCap Index (286) 5673.06 -0.02 4795.53 5674.45 5679.36 4901.61 2.80 1.46 24.43 100.74 8157.74
Centrica PLC 197.10 -4.50 Rolls-Royce Holdings PLC 906.50 5.50
FTSE SmallCap ex Inv Co Index (153) 4952.15 -0.19 4186.14 4961.51 4974.59 4380.55 2.94 1.84 18.52 89.27 7481.78
FTSE GLOBAL EQUITY INDEX SERIES Coca-Cola Hbc AG 2600 46.00 Royal Bank Of Scotland Group PLC 255.80 -1.70
FTSE Sector Indices Compass Group PLC 1638 8.00 Royal Dutch Shell PLC 2172.5 27.00
Construction & Materials (16) 6924.48 -1.72 5853.38 7045.94 6876.92 6360.12 2.16 0.53 87.73 112.89 7368.38 Aug 25 No of US $ Day Mth YTD Total
YTD Gr Div Aug 25 No of US $ Day Mth YTD Total YTD Gr Div Convatec Group PLC 286.70 0.40 Royal Dutch Shell PLC 2142.5 28.00
Consumer Goods (42) 22227.82 -0.11 18789.55 22251.48 22062.10 20687.95 3.12 1.35 23.80 602.03 16594.50 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Crh PLC 2720 49.00 Royal Mail PLC 393.20 1.00
Consumer Services (93) 4888.16 -0.51 4132.04 4913.00 4928.54 4817.47 2.80 1.97 18.18 97.45 4618.38 FTSE Global All Cap 7725 537.12 0.3 -0.614.0 12.1 766.88
2.4 Oil & Gas Producers 109 321.91 0.6 0.6 -8.4 533.88 -6.0 3.9 Croda International PLC 3896 88.00 Rsa Insurance Group PLC 666.00 14.00
Electricity (2) 8268.43 -1.62 6989.44 8404.45 8452.95 8886.82 6.03 1.81 9.16 494.42 12309.17 FTSE Global Large Cap 1444 473.69 0.3 -0.314.7 12.6 693.97
2.5 Oil Equipment & Services 28 299.36 0.4 0.4 -14.4 434.80 -13.5 3.6 Dcc PLC 6920 105.00 Sage Group PLC 693.50 -0.50
Electronic & Electrical Equipment (10) 7500.76 -0.01 6340.51 7501.72 7500.06 6303.09 1.71 2.23 26.27 75.36 6858.04 FTSE Global Mid Cap 1647 721.70 0.3 -1.013.6 12.0 976.82
2.1 Basic Materials 259 493.75 0.6 0.6 17.0 757.00 19.3 2.5 Diageo PLC 2568 18.50 Sainsbury (J) PLC 236.10 -1.00
Equity Investment Instruments (178) 9795.18 -0.08 8280.03 9803.03 9792.38 8316.01 2.35 1.23 34.51 154.00 5382.00 FTSE Global Small Cap 4634 752.23 0.3 -2.110.8 9.5 985.67
1.9 Chemicals 122 727.47 0.5 0.5 15.4 1120.72 17.6 2.5 Direct Line Insurance Group PLC 386.00 0.90 Schroders PLC 3376 -4.00
FTSE All-World 3091 313.82 0.3 -0.414.5 12.5 473.35
2.4 Forestry & Paper 16 281.76 0.8 0.8 18.3 481.31 21.5 3.2 Easyjet PLC 1216 -74.00 Scottish Mortgage Investment Trust PLC 429.00 8.50
Financials (292) 5215.49 -0.03 4408.75 5216.88 5203.49 4319.68 3.49 1.24 23.09 142.80 4883.41
Fixed Line Telecommunications (4) 3431.93 -0.56 2901.07 3451.21 3464.81 4585.04 5.30 1.01 18.62 122.44 3201.02 FTSE World 2545 554.36 0.3 -0.614.0 12.0 1122.38
2.4 Industrial Metals & Mining 70 435.53 0.3 0.3 20.3 663.78 22.1 2.3 Experian PLC 1520 5.00 Segro PLC 527.50 5.50
Food & Drug Retailers (7) 3138.53 -1.05 2653.05 3171.80 3170.19 2791.07 1.37 2.14 34.13 31.53 3679.29 FTSE Global All Cap ex UNITED KINGDOM In 7401 557.63 0.3 -0.614.2 12.4 783.82
2.3 Mining 51 607.33 0.8 0.8 18.4 929.36 21.1 2.4 Ferguson PLC 4540 -40.00 Severn Trent PLC 2249 28.00
Food Producers (10) 8702.68 0.54 7356.52 8655.91 8765.68 8671.42 1.94 2.16 23.85 94.93 7525.10 FTSE Global All Cap ex USA 5838 492.99 0.4 0.518.6 16.1 754.48
2.9 Industrials 546 379.40 0.3 0.3 14.5 547.73 16.2 2.1 Fresnillo PLC 1580 47.00 Shire PLC 3750 -14.50
Forestry & Paper (1) 24635.40 -0.43 20824.72 24741.18 24658.91 18770.39 2.37 3.15 13.41 582.72 27101.36 FTSE Global All Cap ex JAPAN 6440 549.22 0.3 -0.814.1 12.2 791.73
2.4 Construction & Materials 114 519.36 0.2 0.2 12.8 783.85 14.5 2.1 G4S PLC 290.00 -8.30 Sky PLC 955.00 3.00
Gas Water & Multiutilities (5) 7827.39 -0.34 6616.62 7854.21 7842.32 8753.43 4.80 1.28 16.29 249.14 9022.09 FTSE Global All Cap ex Eurozone 7075 552.15 0.3 -0.813.0 11.2 773.15
2.3 Aerospace & Defense 26 694.35 -0.1 -0.1 22.9 994.00 24.7 2.0 Gkn PLC 321.00 5.30 Smith & Nephew PLC 1391 23.00
General Financial (31) 9159.57 0.55 7742.74 9109.86 9057.24 7954.18 3.36 1.90 15.68 194.20 10573.31 FTSE Developed 2100 501.91 0.3 -0.813.5 11.6 722.26
2.4 General Industrials 57 238.85 0.3 0.3 1.5 372.33 3.2 2.6 Glaxosmithkline PLC 1519.5 29.50 Smiths Group PLC 1565 16.00
General Industrials (6) 5130.30 0.22 4336.73 5119.29 5098.83 4298.98 2.63 1.30 29.20 75.29 5852.58 FTSE Developed All Cap 5660 527.13 0.3 -1.013.1 11.2 749.33
2.3 Electronic & Electrical Equipment 71 432.79 0.3 0.3 25.9 573.63 27.6 1.6 Glencore PLC 352.80 9.35 Smurfit Kappa Group PLC 2349 65.00
General Retailers (28) 2359.55 -0.27 1994.57 2366.04 2420.15 2644.48 3.33 2.09 14.38 53.82 2720.78 FTSE Developed Large Cap 914 463.33 0.2 -0.713.6 11.6 677.02
2.5 Industrial Engineering 101 741.70 0.6 0.6 17.7 1055.29 19.4 2.0 Hammerson PLC 561.00 -5.00 Sse PLC 1404 -33.00
FTSE Developed Europe Large Cap 226 367.26 0.5 -0.218.4 15.0 618.65
3.4 Industrial Transportation 99 650.94 0.4 0.4 15.6 939.69 17.3 2.2 Hargreaves Lansdown PLC 1371 31.00 St. James's Place PLC 1189 0.00
Health Care (22) 9602.41 -0.06 8117.08 9608.61 9580.73 10547.17 3.64 0.85 32.39 296.45 7482.69
FTSE Developed Europe Mid Cap 315 596.16 0.4 1.123.7 21.1 897.92
2.6 Support Services 78 335.18 0.2 0.2 13.5 462.32 14.9 1.8 HSBC Holdings PLC 742.80 6.60 Standard Chartered PLC 777.10 25.70
Health Care Equipment & Services (10) 8526.83 -0.02 7207.87 8528.78 8468.71 7777.92 1.20 2.59 32.11 71.49 7404.93
FTSE Dev Europe Small Cap 706 847.21 0.6 0.424.5 22.1 1235.01
2.4 Consumer Goods 428 479.20 0.2 0.2 14.6 711.04 16.5 2.4 Imperial Brands PLC 3242 72.50 Standard Life Aberdeen PLC 441.60 10.00
Household Goods & Home Construction (16)15646.94 -0.41 13226.62 15711.75 15562.99 14164.43 3.14 2.09 15.26 425.49 11194.21
FTSE North America Large Cap 291 525.14 0.1 -1.011.3 9.8 717.13
2.1 Automobiles & Parts 105 399.32 0.5 0.5 8.5 572.93 10.6 2.8 Informa PLC 686.50 -10.50 Taylor Wimpey PLC 196.80 4.00
Industrial Engineering (12) 12649.48 0.28 10692.82 12613.87 12498.31 10314.24 2.13 1.63 28.91 218.07 15504.61
FTSE North America Mid Cap 386 764.87 0.3 -2.5 7.6 6.5 971.54
1.7 Beverages 46 645.13 0.2 0.2 16.9 969.80 18.7 2.5 Intercontinental Hotels Group PLC 3852 -72.00 Tesco PLC 184.20 7.65
Industrial Metals & Mining (2) 3729.53 -0.57 3152.63 3751.04 3688.32 1454.97 5.63 2.22 8.00 211.81 3471.28
FTSE North America Small Cap 1428 777.11 0.2 -3.7 5.1 4.1 958.72
1.6 Food Producers 107 606.60 -0.2 -0.2 6.6 924.97 8.5 2.3 International Consolidated Airlines Group S.A. 616.50 5.00 Tui AG 1306 -19.00
Industrial Transportation (7) 4745.54 -0.42 4011.49 4765.34 4780.92 4745.53 4.21 1.25 19.03 135.28 4283.93
FTSE North America 677 350.10 0.2 -1.310.7 9.2 489.26
2.0 Household Goods & Home Construction 49 460.92 0.4 0.4 14.0 679.65 16.2 2.4 Intertek Group PLC 4948 114.00 Unilever PLC 4510.5 57.00
Industrials (111) 5395.29 -0.47 4560.73 5420.67 5402.47 4909.88 2.31 1.50 28.96 79.41 5584.70
FTSE Developed ex North America 1423 258.13 0.4 0.018.0 15.4 424.63
3.0 Leisure Goods 31 219.65 -0.5 -0.5 37.3 289.20 38.5 1.3 Itv PLC 160.90 -5.80 United Utilities Group PLC 913.00 15.50
Leisure Goods (2) 7075.76 -0.26 5981.26 7094.53 7041.95 5337.59 5.22 1.10 17.36 158.08 6441.66
FTSE Japan Large Cap 180 358.70 0.4 0.911.3 2.1 Personal Goods
10.1 464.32 79 710.16 0.3 0.3 22.8 996.52 24.5 1.9 Johnson Matthey PLC 2809 28.00 Vodafone Group PLC 219.60 0.55
Life Insurance/Assurance (9) 8795.49 0.04 7434.97 8792.37 8739.66 6967.78 3.49 1.72 16.59 263.55 8692.16
FTSE Japan Mid Cap 313 593.11 0.4 0.415.9 14.8 736.84
1.7 Tobacco 11 1375.37 0.4 0.4 8.6 2852.34 11.0 3.7 Kingfisher PLC 295.40 2.30 Whitbread PLC 3677 -116.00
Media (22) 7388.39 -0.52 6245.53 7427.08 7384.11 7777.81 3.17 1.91 16.48 162.83 4589.07
FTSE Global wi JAPAN Small Cap 792 669.35 0.5 2.221.2 19.9 860.99
1.8 Health Care 184 479.23 0.1 0.1 13.3 692.22 15.1 2.0 Land Securities Group PLC 988.50 -13.50 Worldpay Group PLC 419.00 -4.60
Mining (19) 16656.08 0.37 14079.66 16595.13 16496.24 11451.92 2.78 2.00 17.93 430.83 9003.46
FTSE Japan 493 152.40 0.4 0.812.3 2.0 Health Care Equipment & Services
11.1 221.36 68 816.42 0.1 0.1 18.7 952.20 19.4 1.1 Legal & General Group PLC 263.20 -3.60 Wpp PLC 1437 -127.00
Mobile Telecommunications (2) 4922.22 -0.18 4160.84 4931.12 4938.73 5237.56 5.80 -0.48 -35.60 194.42 5051.56
FTSE Asia Pacific Large Cap ex Japan 552 693.95 0.4 0.825.2 22.4 1096.63
2.8 Pharmaceuticals & Biotechnology 116 340.24 0.1 0.1 11.2 514.34 13.3 2.5 Lloyds Banking Group PLC 64.91 1.00
Nonlife Insurance (10) 3612.74 -0.35 3053.91 3625.56 3616.36 3065.94 3.10 1.56 20.70 82.34 6415.34
FTSE Asia Pacific Mid Cap ex Japan 413 907.54 0.3 -0.721.5 19.3 1371.66
2.7 Consumer Services 384 431.62 0.2 0.2 9.4 577.56 10.7 1.7
Oil & Gas (17) 8090.81 0.43 6839.30 8056.07 8081.30 7568.77 6.41 0.49 32.11 384.36 7604.44 FTSE Asia Pacific Small Cap ex Japan 1452 558.61 0.4 -0.417.0 14.9 831.76
2.6 Food & Drug Retailers 56 283.41 0.0 0.0 0.2 396.16 1.7 2.1
Oil & Gas Producers (10) 7796.51 0.44 6590.52 7762.39 7784.37 7216.02 6.44 0.50 31.17 374.08 7588.72
Oil Equipment Services & Distribution (7)11566.27 0.06 9777.16 11559.42 11750.58 15895.34 5.46 -0.20 -92.11 306.86 9028.35
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
965 547.60
2065 760.43
0.4
0.5
0.6
2.7
24.8
24.2
22.1 918.93
2.8 General Retailers
21.4 1143.20
2.7 Media
122 590.82
79 333.74
0.2
0.4
0.2
0.4
8.5 769.32
9.7 447.77
9.7
10.9
1.6
1.6
UK STOCK MARKET TRADING DATA
Personal Goods (6) 33952.36 -0.12 28700.50 33991.63 33945.26 26843.02 2.55 0.27 144.65 655.11 23094.43 Aug 25 Aug 24 Aug 23 Aug 22 Aug 21 Yr Ago
FTSE Emerging Large Cap 530 722.88 0.5 3.125.1 22.2 1094.89
2.7 Travel & Leisure 127 442.03 0.1 0.1 16.1 598.22 17.5 1.8
Pharmaceuticals & Biotechnology (12)12719.76 -0.07 10752.23 12728.73 12699.33 14301.78 3.99 0.77 32.44 431.81 8847.44 SEAQ Bargains 4072.00 5289.00 4815.00 5209.00 4678.00 4678.00
FTSE Emerging Mid Cap 461 945.29 0.4 2.021.4 18.9 1407.73
2.8 Telecommunication 95 165.51 0.4 0.4 2.8 311.72 5.7 4.1
Real Estate Investment Trusts (34) 2673.93 -1.05 2260.31 2702.20 2697.66 2708.55 3.50 1.57 18.23 68.57 3361.37 Order Book Turnover (m) 183.87 260.96 179.01 244.33 198.28 198.28
FTSE Emerging Small Cap 1074 772.44 0.4 0.921.7 19.2 1114.74
2.7 Fixed Line Telecommuniations 43 134.46 0.6 0.6 -4.4 278.82 -1.3 4.7
Software & Computer Services (12) 2335.65 0.52 1974.37 2323.64 2318.21 2203.01 2.21 1.32 34.40 48.45 3198.87 Order Book Bargains 797367.00 866723.00 831966.00 765448.00 842249.00 842249.00
FTSE Emerging Europe 116 373.15 1.0 5.714.7 11.0 589.72
4.0 Mobile Telecommunications 52 181.47 0.3 0.3 13.6 306.83 16.2 3.4
Support Services (51) 7624.35 -0.40 6444.99 7655.02 7677.04 7149.02 2.25 2.00 22.26 109.30 7953.10 Order Book Shares Traded (m) 1101.00 1160.00 1249.00 1059.00 1271.00 1271.00
FTSE Latin America All Cap 236 949.41 0.1 5.426.0 23.6 1468.38
2.7 Utilities 167 283.20 0.3 0.3 14.9 553.33 17.8 3.5
Technology (16) 2027.07 0.48 1713.52 2017.43 2014.37 1988.53 2.30 1.30 33.60 40.63 2626.94 FTSE Middle East and Africa All Cap 241 713.36 0.7 -0.910.6 3.1 Electricity
8.5 1116.01 109 311.36 0.3 0.3 14.5 601.15 17.3 3.4 Total Equity Turnover (m) 7412.06 7745.05 6917.78 6954.26 6962.10 6962.10
Technology Hardware & Equipment (4) 1717.27 0.02 1451.64 1716.89 1730.79 2457.27 3.30 1.15 26.37 20.22 2021.95 FTSE Global wi UNITED KINGDOM All Cap In 324 338.05 0.5 -1.711.8 3.7 Gas Water & Multiutilities
8.6 571.42 58 296.59 0.3 0.3 15.6 595.52 18.7 3.7 Total Mkt Bargains 907021.00 995703.00 936250.00 874263.00 954225.00 954225.00
Telecommunications (6) 3334.96 -0.29 2819.10 3344.80 3352.37 3821.37 5.65 -0.06 -281.14 127.81 3805.82 FTSE Global wi USA All Cap 1887 600.74 0.2 -1.710.1 1.9 Financials
8.7 796.00 701 240.22 0.5 0.5 12.6 394.33 15.1 2.9 Total Shares Traded (m) 3571.00 3689.00 4317.00 3524.00 3794.00 3794.00
Tobacco (2) 53194.01 -0.02 44965.79 53206.49 52120.68 56281.61 3.90 1.11 23.13 1883.35 34791.24 FTSE Europe All Cap 1441 432.18 0.5 0.319.8 3.2 Banks
16.6 702.64 247 215.01 0.5 0.5 11.6 379.69 14.5 3.4 Excluding intra-market and overseas turnover. *UK only total at 6pm. UK plus intra-market turnover. (u) Unavaliable.
Travel & Leisure (36) 9319.26 -0.43 7877.73 9359.73 9387.80 8475.43 2.71 1.93 19.14 186.44 8889.26 FTSE Eurozone All Cap 650 428.99 0.4 1.124.2 3.0 Nonlife Insurance
21.2 702.64 68 260.13 0.5 0.5 12.2 378.58 14.3 2.3 (c) Market closed.
Utilities (7) 8279.39 -0.61 6998.71 8330.14 8330.25 9187.72 5.05 1.41 14.02 310.94 9578.00 FTSE RAFI All World 3000 3032 6554.11 0.4 -0.312.1 2.9 Life Insurance
9.8 8696.65 52 229.98 0.9 0.9 14.8 369.82 17.6 2.9
Index- Real Estate Investment & Services (19) 2633.18 -0.96 2225.87 2658.62 2666.60 2473.20 2.70 1.88 19.72 47.65 7077.37 FTSE RAFI US 1000 996 10499.32 0.3 -1.7 5.0 2.4 Financial Services
3.5 13812.32 151 277.92 0.4 0.4 15.3 383.64 16.9 1.9
ex Inv Co Index (458) 3995.19 -0.09 3377.20 3998.97 3989.43 3686.93 3.70 1.12 24.06 115.09 3530.77 FTSE EDHEC-Risk Efficient All-World 3091 376.58 0.3 -0.614.2 2.2 Technology
12.5 525.69 181 239.78 0.0 0.0 23.5 294.68 24.9 1.5 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
ex Multinationals Index (575) 1223.92 -0.22 857.49 1226.60 1227.42 1145.34 3.18 1.35 23.28 28.31 2204.19 FTSE EDHEC-Risk Efficient Developed Europe 541 318.74 0.4 0.521.6 2.6 Software & Computer Services
19.1 488.30 87 413.74 0.0 0.0 24.3 483.70 25.3 0.9 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Non Financials (344) 4733.54 -0.12 4001.34 4739.14 4728.52 4510.08 3.69 1.09 24.89 135.12 7072.99 Oil & Gas 146 341.04 0.6 -1.8 -7.0 -9.1 553.32
3.8 Technology Hardware & Equipment 94 180.44 0.0 0.0 22.6 231.11 24.6 2.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 9 104.29 0.3 0.3 13.5 141.42 14.6 1.8 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Real Estate Investment & Services 107 340.92 0.1 0.1 23.5 569.95 25.9 2.5 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 7419.21 7426.82 7431.60 7432.89 7436.75 7435.12 7432.33 7430.29 7411.88 7439.34 7401.46 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/
FTSE 250 19738.14 19736.30 19736.82 19729.60 19734.35 19731.40 19723.01 19717.01 19691.02 19749.15 19671.33 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,
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 5673.77 5659.17 5664.16 5668.14 5669.92 5677.96 5679.29 5678.14 5674.18 5679.88 5658.95
FTSE All-Share 4064.68 4067.56 4069.81 4070.23 4072.16 4071.53 4070.06 4069.03 4059.89 4073.16 4054.63 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
Time of FTSE 100 Day's high:10:31:15 Day's Low15:35:30 FTSE 100 2010/11 High: 7547.63(29/05/2017) Low: 7099.15(31/01/2017) www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. FTSE International Limited. 2013. All Rights reserved. FTSE is a trade mark of the London Stock Exchange
Time of FTSE All-Share Day's high:10:32:00 Day's Low15:35:30 FTSE 100 2010/11 High: 4130.15(29/05/2017) Low: 3858.26(31/01/2017) Group companies and is used by FTSE International Limited under licence.
Further information is available on http://www.ftse.com FTSE International Limited. 2013. All Rights reserved. FTSE is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Access Intelligence Int 4.129 5.143 1.897L 1.074L 0.37L 0.03L - - - - - date price(p) Sector code Stock price(p) +/- High Low Cap (m)
price up date High Low Stock Price p +or- Boot (Henry) Int 195.395 107.333 22.557 20.778 13.1 11.9 2.8 2.5 Oct 20 7.3 6.279 08/22 10.00 SHWE Myanmar Strategic Holdings Ltd 9.50 - 0.00 0.00 21.5
There are currently no rights offers by any companies listed on the LSE. Camellia Int 123.6 100.1 1.9 6.8 532.2 29 37 35 Oct 6 132 129.484 08/17 120.00 AIM WCH Wilmcote Holdings PLC 132.50 -2.00 135.47 130.00 2760.4
Computacenter Int 1700.329 1478.219 47.527 23.57 28.5 13.3 7.4 7.2 Oct 13 22.4 22.118 08/11 24.00 AIM XPD Xpediator PLC 27.75 -0.60 28.90 24.00 2798.1
F&C Private Equity Trust Int 9.098 49.628 1.01L 0.41L 6.92 6.12 Nov 3 13.4 11.918 08/10 10.00 AIM ALS Altus Strategies PLC 10.38 0.00 10.50 9.75 1117.2
ITM Power Pre 2.415 1.93 3.55L 4.359L 1.7L 2L - - - - - 08/10 9.00 AIM VDTK Verditek PLC 8.13 -0.14 9.22 7.52 1524.8
Maven Income and Growth VCT 3 Int 0.53 0.637 0.322 0.412 0.65 0.8 5.14 2 Sep 15 8.89 5.73 08/04 0.15 AIM GETB GetBusy PLC 35.50 0.50 42.00 28.30 1718.2
07/28 161.00 AIM QUIZ QUIZ PLC 182.00 0.25 204.28 175.00 22610.0
07/25 55.00 AIM ARE Arena Events Group PLC 57.50 0.33 575.00 55.00 6591.8
07/25 1.00 Greencoat Renewables PLC 1.06 0.00 1.07 1.00 284.9
07/25 55.00 AIM I3E i3 Energy PLC 32.00 0.00 45.00 27.00 822.1

Figures in m. Earnings shown basic. Figures in light text are for corresponding period year earlier. Placing price. *Intoduction. When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Monday 28 August 2017 FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m
Australia (A$) Finland () Japan () Sweden (SKr) AutomData 104.59 0.18 121.77 85.48 2.17 26.24 46477.16 Lockheed 302.80 3.60 308.48 228.50 2.33 24.09 87203.63
ANZ 29.65 -0.71 32.95 25.75 7.63 15.26 69152.69 Nokia 5.23 -0.03 5.96 3.66 2.84 -56.37 36237.65 AstellasPh 1376 -18.00 1688 1331.5 2.38 15.38 26055.57 AtlasCpcoB 284.20 17.20 309.30 216.30 2.17 23.47 13866.09 Avago Tech 245.59 -3.78 259.36 158.75 1.24-503.49 99855.08 Lowes 73.35 -0.29 86.25 64.87 1.90 23.10 61924.01
BHPBilltn 26.68 0.76 27.95 19.71 2.13 43.71 68035.98 SampoA 44.59 0.09 47.46 36.86 4.91 16.20 29581.27 Bridgestne 4652 -137.00 4936 3386 3.04 13.48 34621.32 Ericsson 47.50 -1.60 64.95 43.19 1.98 -12.03 18247.02 BakerHu 57.68 - 68.59 43.09 1.17 -21.23 24541.87 Lyondell 90.26 2.92 97.64 74.02 3.88 9.98 35725.26
CmwBkAu 77.72 -1.83 87.74 69.22 6.97 16.25 106749.26 France () Canon 3792 -96.00 3967 2850 3.81 22.18 46291.98 H&M 206.10 -3.40 276.90 199.60 2.19 19.42 37640.2 BankAm 23.77 0.15 25.80 14.81 1.19 14.16 234148.29 Marathon Ptl 51.72 1.61 56.81 39.29 2.76 31.05 26183.45
CSL 128.55 1.55 145.00 91.62 1.28 35.22 46183.95 Airbus Grpe 70.86 -0.64 77.25 50.16 1.81 77.49 65151.92 CntJpRwy 18125 -250.00 19835 16540 0.72 9.14 34174.64 Investor 372.10 -2.80 425.60 292.70 2.48 4.18 21191.14 Baxter 61.51 0.64 63.14 43.13 0.87 17.67 33515.01 Marsh&M 76.96 -0.40 81.00 62.33 1.82 20.99 39443.91
NatAusBk 30.68 -0.61 34.09 25.14 8.81 13.24 65417.56 AirLiquide 103.10 0.05 115.25 90.02 2.40 20.58 47518.63 Denso 5291 -114.00 5452 3886 2.19 15.00 38455.15 Nordea Bk 105.00 2.00 115.70 78.25 5.60 13.19 53169.23 BB & T 46.15 0.03 49.88 36.80 2.58 17.37 37293.47 MasterCard 132.75 1.61 134.24 95.33 0.64 33.65 139278.56
Telstra 3.92 0.05 5.35 3.81 10.82 12.59 37017.53 AXA 24.79 0.01 25.80 17.68 4.11 10.35 71347.44 EastJpRwy 10000 -285.00 11290 8701 1.31 13.87 35298.66 SEB 102.30 0.20 109.00 79.40 5.05 13.79 27756.24 BectonDick 198.57 0.88 206.63 161.29 1.42 58.22 45187.58 McDonald's 158.82 1.06 159.98 110.33 2.32 26.26 128643.66
Wesfarmers 41.95 0.08 46.06 39.52 6.46 17.23 37766.17 BNP Parib 64.22 -1.77 68.89 43.24 4.00 11.49 95185.35 Fanuc 21085 -625.00 23670 16525 1.89 31.70 39381.12 SvnskaHn 115.40 -2.00 136.30 105.90 4.07 14.88 27543.27 BerkshHat 269761 2384271369.31 213030 - 20.52 203787.44 McKesson 147.58 1.58 187.90 114.53 0.75 6.82 31030.25
Westpc 32.11 -0.61 35.39 28.56 8.28 14.60 86540.2 ChristianDior 255.80 2.40 257.95 151.05 1.16 32.65 54817.44 FastRetail 31740 -370.00 44370 30640 1.06 33.85 30815.78 Swedbank 212.40 -0.60 234.00 186.70 5.73 12.64 30062.46 Biogen 285.06 3.29 303.81 244.28 - 18.87 60270.73 Medtronic 79.06 -4.35 89.72 69.35 2.17 27.48 107444.65
Woolworths 26.08 -0.89 27.75 22.23 3.52 24.65 26804.06 Cred Agr 14.92 -0.42 15.68 8.10 3.83 14.81 50396.12 Fuji Hvy Ind 3911 -25.00 5016 3500 3.72 10.59 27534.18 Telia Co 36.53 -0.57 40.33 33.93 10.10 10.76 19777.32 BkNYMeln 52.65 0.55 54.59 38.68 1.43 15.76 54395.67 Merck 62.94 1.45 66.80 58.29 2.95 34.32 171659.68
Belgium () Danone 66.70 0.51 70.53 57.66 2.22 25.82 53110.91 Hitachi 719.00 -7.40 763.30 461.40 1.83 14.50 31808.68 Volvo 136.50 0.10 152.00 89.05 2.24 16.35 27991.38 BlackRock 416.37 -0.18 442.84 336.84 2.28 20.16 67026.49 Metlife 47.99 0.97 51.77 36.35 3.43 -76.81 51007.08
AnBshInBv 98.23 -0.85 119.60 92.13 3.30 60.63 197463.17 EDF 9.10 -0.31 12.14 7.33 10.48 8.54 31190.1 HondaMtr 3053 10.00 3675 2693.5 3.04 8.84 50618.19 Switzerland (SFr) Boeing 235.89 0.12 246.49 126.31 2.05 28.21 139430.66 Microsoft 72.82 0.33 74.42 55.61 2.12 31.15 560877.41
KBC Grp 68.80 -1.07 71.34 49.02 1.35 11.88 34149 Engie SA 14.33 0.18 14.84 10.77 6.46 -67.28 41430.38 JapanTob 3696 -88.00 4243 3607 3.55 17.17 67658.24 ABB 22.26 0.32 24.89 19.72 6.49 22.75 50360.49 BrisMySq 58.37 1.95 60.45 46.01 2.63 21.49 95722.51 Mnstr Bvrg 55.22 1.17 55.70 40.64 - 42.19 31374.3
Esslr Intl 105.05 0.45 122.15 93.41 0.98 30.58 27259.88 KDDI 2957.5 7.50 3229 2745.5 2.90 13.22 70035.09 CredSuisse 14.43 0.05 15.74 11.49 4.64 -17.66 38486.2 CapOne 81.49 -0.04 96.92 68.27 1.95 11.95 39416.11 MondelezInt 41.48 -1.46 47.23 40.50 1.82 36.70 62536.9
Brazil (R$)
Hermes Intl 440.45 1.25 468.30 349.00 0.70 45.43 55202.36 Keyence 56020 2830 57360 35290 0.10 - 62351.81 Nestle 80.60 -0.25 86.00 71.45 2.83 27.17 261741.65 CardinalHlth 66.08 1.70 84.88 62.70 2.71 16.54 20911.26 Monsanto 116.85 -0.02 118.97 97.35 1.84 25.41 51334.9
Ambev 19.85 0.09 20.00 15.79 3.51 27.77 99249.2
LOreal 178.05 2.65 197.15 156.50 1.61 34.96 118348.5 MitsbCp 2501 -39.00 2705.5 2056 3.23 8.94 36399.09 Novartis 80.20 0.40 84.35 67.40 3.23 30.81 218991.97 Carnival 68.17 0.71 69.24 44.11 2.12 18.27 36583.86 MorganStly 45.94 0.55 48.90 30.62 1.73 13.24 84372.52
Bradesco 33.11 1.07 33.14 24.01 1.70 12.78 32171.87
LVMH 217.00 -0.70 239.65 145.75 1.54 29.70 130609.41 MitsubEst 1886.5 -60.00 2443 1806 1.02 29.14 24016.73 Richemont 85.25 3.05 85.90 65.60 1.94 37.72 46434.49 Caterpillar 115.35 1.43 116.64 79.93 2.75-448.00 68168.71 MylanNV 30.53 -0.19 45.87 29.39 - 24.83 16372.65
Cielo 22.34 -0.41 28.58 20.36 2.43 16.05 19307.37
Orange 14.15 -0.08 15.80 13.04 4.04 148.55 44685.87 MitsubishiEle 1624 -81.50 1802 1228.5 1.68 16.40 31916.67 Roche 242.00 0.60 273.00 218.30 3.29 22.12 177409.27 CBS 63.89 -0.91 70.10 48.88 1.12 17.23 23259.47 Netflix 165.95 -0.59 191.50 93.26 - 204.12 71648.87
ItauHldFin 35.91 0.61 36.38 27.23 3.73 10.46 38288.28
PernodRic 116.70 -0.55 124.45 95.73 1.49 26.48 36773.08 MitsuiFud 2365 -32.00 2863.5 2059 1.39 18.46 21460.98 Swiss Re 87.90 0.45 98.50 86.30 5.41 8.96 32051.81 Celgene 129.68 2.03 139.00 96.93 - 40.62 101455.24 NextEraE 150.10 0.17 151.19 110.49 2.45 17.34 70432.07
Petrobras 14.48 0.44 19.72 12.47 - -20.20 34281.88
Renault 75.33 -0.27 90.76 69.12 3.98 5.04 26446.91 MitUFJFin 664.30 -28.80 778.80 492.00 2.74 44.81 85292.17 Swisscom 479.00 4.40 485.00 426.80 9.06 15.61 25891.51 CharlesSch 39.76 0.25 44.10 29.86 0.75 27.38 53243.39 Nike 53.90 -1.05 60.53 49.01 1.30 21.53 70724.78
Vale 33.83 2.28 37.28 16.16 0.46 8.93 53782.17
Safran 83.45 0.46 84.27 59.42 1.63 20.82 41315.79 Mizuho Fin 187.90 -2.90 225.30 163.50 3.85 14.23 43665.87 Syngent 463.00 1.80 471.20 360.50 - 41.32 42748.26 Charter Comms 388.79 -4.18 408.83 241.50 - 20.55 100262.62 NorfolkS 118.21 -0.42 125.31 89.92 2.07 19.76 34065.98
Canada (C$) Murata Mfg 17150 -50.00 17910 12210 1.24 24.98 35361.36 Chevron Corp 108.23 1.75 119.00 97.53 4.09 68.68 205096.14 Northrop 269.33 1.72 274.61 206.69 1.36 20.75 46888.82
Sanofi 82.10 -0.16 92.97 66.72 3.43 23.24 123049.9 UBS 16.08 -0.15 17.49 15.11 - 15.73 64633.72
BCE 59.32 0.46 63.00 56.80 4.50 18.68 42740.71 NipponTT 5291 13.00 5500 4156 2.29 13.40 101524.17 Chubb 143.63 -1.81 150.28 121.48 1.98 13.66 66847.71 NXP 112.23 -0.22 113.39 80.13 - 19.71 38831.9
Sant Gbn 45.95 -0.36 52.40 37.04 2.50 21.12 30565.79 Zurich Fin 292.10 0.50 299.70 243.50 6.02 13.69 46126.07
BkMontrl 92.31 0.78 104.15 83.44 3.43 12.76 47919.45 Nissan Mt 1082.5 -21.00 1220 957.20 4.27 6.71 41818.89 Cigna 179.30 2.27 181.15 115.03 0.02 23.24 45143.82 Occid Pet 59.22 0.07 78.48 57.20 5.27 -83.33 45278.02
Schneider 67.50 -0.12 74.50 57.97 2.74 23.59 47813.54 Taiwan (NT$)
BkNvaS 77.64 0.55 82.30 68.27 3.47 13.55 74446.96 Nomura 610.10 -31.70 784.00 438.90 3.16 9.21 21345.88 Cisco 31.44 1.07 34.60 29.12 3.39 16.03 157201.71 Oracle 49.24 0.62 51.85 37.62 1.30 22.33 203690.22
SFR Group 34.39 0.04 34.55 21.87 - -23.54 18060.83 Chunghwa Telecom 103.50 1.00 117.00 99.50 5.22 21.61 26555.21
Brookfield 49.33 0.07 53.08 42.71 1.36 30.87 39029.59 Nppn Stl 2584 -94.00 2912 1941 2.24 10.93 22476.14 Citigroup 67.85 1.27 69.86 45.16 0.80 13.20 184861.13 Pepsico 115.85 -1.75 119.39 98.50 2.62 24.70 165145.39
SocGen 46.93 -1.10 52.26 29.23 3.95 12.61 45008.48 Formosa PetChem 105.00 2.00 119.00 89.70 - 13.70 33081.75
CanadPcR 191.00 -0.37 218.78 186.21 1.01 19.69 22401.33 NTTDCMo 2536 -42.00 2804 2361 3.04 15.36 90515.68 CME Grp 127.10 1.71 127.96 98.95 1.99 26.71 43202.44 Perrigo 77.42 0.15 99.14 63.68 0.79 -3.16 11040.95
Total 43.33 0.68 49.50 40.53 5.15 17.89 128669.88 HonHaiPrc 116.00 0.00 122.50 76.30 2.81 13.77 66483.61
CanImp 105.92 -1.02 120.83 97.52 4.60 9.87 36974.82 Panasonic 1454.5 -40.00 1578 931.50 1.66 20.77 32657.23 Coca-Cola 45.57 -0.10 46.43 39.88 3.21 31.16 194369.91 Pfizer 33.39 0.72 35.19 29.83 3.76 27.24 198581.98
UnibailR 212.15 -1.65 250.55 203.10 4.12 9.19 25152.99 MediaTek 269.00 -3.00 303.00 203.00 6.96 19.54 14073.94
CanNatRs 38.64 -0.09 46.74 35.90 2.54 29.35 37568.74 Seven & I 4377 -46.00 4902 4148 2.03 45.07 35512.85 Cognizant 69.78 -0.29 72.07 45.44 0.21 22.56 41213.65 Phillips66 83.42 1.86 88.87 75.14 3.08 25.19 42670.23
Vinci 76.50 -0.07 80.43 49.93 2.61 17.20 53916.63 TaiwanSem 217.50 3.50 219.00 173.00 3.17 16.42 186534.09
CanNatRy 99.32 -0.68 108.64 80.63 1.49 21.31 59800.55 ShnEtsuCh 9609 -153.00 10855 6872 1.20 23.05 38003.87 ColgtPlm 71.15 0.13 77.27 63.43 2.26 24.94 62671.91 PhilMorris 114.80 -0.53 123.55 86.78 3.59 25.62 178306
Vivendi 19.38 0.44 20.82 15.96 4.79 59.67 29736.5
Enbridge 50.40 0.78 59.19 49.20 4.16 47.92 66103.28 Softbank 8835 93.00 9521 5953 0.50 11.20 89005.85 Thailand (THB) Comcast 40.20 -0.32 42.18 30.02 1.46 20.43 189097.91 PNCFin 127.88 0.77 133.26 85.54 1.71 16.41 61280.93
GtWesLif 35.07 0.45 37.79 30.85 3.87 13.78 27777.4 Germany () PTT Explor 394.00 9.00 430.00 311.00 3.95 9.51 33790.2
Sony 4199 -129.00 4616 2930 0.46 42.23 48594.32 ConocPhil 43.58 0.47 53.17 39.00 2.34 -13.87 53034.65 PPG Inds 103.72 1.64 113.67 89.64 1.53 36.71 26602.08
ImpOil 36.51 0.35 48.72 35.15 1.59 12.36 24668.59 Allianz 182.20 -0.50 187.30 126.60 3.76 13.64 97235.99
SumitomoF 4056 -92.00 4768 3293 3.57 8.51 52510.02 United Arab Emirates (Dhs) Corning 28.66 0.78 32.17 22.14 2.01 13.14 25885.24 Praxair 132.42 0.12 138.69 114.43 2.36 24.17 37875.34
Manulife 24.78 0.28 26.11 17.41 2.96 16.46 39225.96 BASF 82.30 0.90 94.32 70.09 3.27 18.63 89741.18
Takeda Ph 5891 -39.00 6030 4321 2.95 68.95 42640.62 Emirtestele 17.95 -0.05 20.00 17.10 4.62 16.99 42501.73 Costco 152.45 -4.63 183.18 142.11 1.21 26.53 66863.55 Priceline 1793.48 -16.52 2067.99 1402.67 - 38.42 87986.37
Potash 21.56 -0.12 26.62 20.67 4.78 35.64 14494.45 Bayer 109.00 1.10 123.90 86.03 2.13 20.87 107010.77
TokioMarine 4426 -71.00 5441 3738 3.19 12.07 30505.57 United Kingdom (p) CrownCstl 106.99 2.87 107.89 79.38 3.53 88.79 43466.53 ProctGmbl 92.51 0.04 92.96 81.18 2.89 25.29 235901.82
RylBkC 93.25 1.00 99.90 79.75 3.26 13.95 108785.91 BMW 79.29 -0.25 91.76 72.02 3.74 7.61 56667.54
Toyota 6158 -17.00 7215 5492 3.44 10.18 183914.12 AscBrFd 3184 44.00 3206 2335 1.15 22.91 32462.63 CSX 48.85 0.07 55.48 27.89 1.50 25.80 44615.34 Prudntl 102.82 0.87 115.26 76.62 2.85 10.11 43904.14
Suncor En 39.18 -0.35 44.90 34.01 2.97 24.89 52159.86 Continental 191.95 -0.30 210.35 158.20 1.81 14.68 45577.87
Mexico (Mex$) AstraZen 4498.5 51.50 5520 3996 4.73 19.16 73329.51 CVS 75.35 -2.31 96.97 69.30 2.43 15.20 76598.15 PublStor 203.87 7.58 232.21 192.15 3.79 29.33 35473.94
ThmReut 57.09 -0.59 62.83 52.01 2.97 33.88 32752.37 Daimler 62.17 1.86 73.23 59.01 4.98 7.06 78962.62
AmerMvl 16.64 -0.03 16.83 10.77 1.62 28.32 42075.82 Aviva 521.50 -0.50 570.50 411.30 4.12 34.54 27167.13 Danaher 82.16 1.29 88.01 75.71 0.64 26.56 57075.72 Qualcomm 52.03 0.11 71.62 51.05 4.12 20.11 76799.76
TntoDom 64.82 1.09 71.31 56.93 3.16 14.08 95832.15 Deut Bank 13.80 -0.31 19.97 9.90 - -18.25 33848.35
FEMSA UBD 176.80 -2.02 184.10 150.11 1.36 172.10 21688.76 Barclays 194.30 -1.35 267.32 155.95 1.54 14.83 42627.08 Deere 115.84 -1.47 132.50 80.35 2.06 20.97 37052.83 Raytheon 178.03 1.13 181.05 132.89 1.70 24.84 51673.03
TrnCan 62.89 0.61 65.24 57.36 3.61 64.00 43841.03 Deut Tlkm 15.30 -0.21 18.15 14.06 3.34 274.83 86487.71
WalMrtMex 43.67 -0.49 44.85 34.70 1.24 27.26 43283.67 BP 445.50 5.50 521.20 411.60 7.20 50.01 112908.65 Delphi 94.26 1.99 95.44 60.50 1.27 21.28 25152.73 Regen Pharm 477.80 9.82 543.55 325.35 - 56.10 50284.04
ValeantPh 17.62 -0.46 41.56 11.20 - -4.31 4897.53 DeutsPost 34.73 -0.25 35.58 26.96 - 16.88 50039.03
BrAmTob 4835 83.00 5643.6 2879.89 3.22 19.40 116094.44 Delta 46.68 -0.85 55.75 35.90 1.72 9.30 33797.73 ReynoldsAm 65.40 0.40 - - - - -
E.ON 9.46 -0.17 9.71 5.99 2.12 49.64 24709.85 Netherlands ()
China (HK$) BSkyB 955.00 3.00 1050 747.50 3.51 26.16 21142.07 Devon Energy 31.16 0.76 50.69 28.79 0.79 30.56 16377.7 S&P Global 151.27 1.17 158.35 107.21 1.01 17.55 38876.39
Fresenius Med 78.85 -0.21 89.22 70.69 1.16 19.90 28759.19 Altice 18.66 -0.06 23.43 13.48 - -10.59 29389.91
AgricBkCh 3.72 0.10 3.80 3.09 5.24 5.79 14619.08 BT 290.15 -2.35 400.70 277.44 4.98 18.02 37219.54 DiscFinServ 59.69 0.26 74.33 53.91 1.99 10.40 22225.69 Salesforce 94.10 3.34 95.23 66.43 - 497.53 67018.02
Fresenius SE 71.09 2.39 80.07 63.62 0.72 24.96 46713.99 ASML Hld 129.60 0.50 133.45 89.20 0.88 32.40 66385.43
Bk China 4.08 0.16 4.10 3.32 5.07 6.46 43619.05 Compass 1638 8.00 1765.92 1350.96 2.01 23.40 34692.51 Disney 102.41 1.71 116.10 90.32 1.50 17.32 158067.89 Schlmbrg 63.88 0.56 87.84 62.56 3.22 -43.07 88443.4
HenkelKgaA 101.45 0.45 114.60 92.38 1.50 21.17 31290.12 Heineken 86.88 0.03 89.71 67.47 1.47 28.50 59411.04
BkofComm 5.96 0.26 6.44 5.40 5.21 5.92 26677.99 Diageo 2568 18.50 2604 1946 2.35 23.84 83256.7 DominRes 80.08 1.39 81.65 69.51 3.67 21.78 51458.28 Sempra Energy 119.03 2.48 119.66 92.95 2.63 17.76 29885.77
Linde 164.85 -0.80 179.70 135.65 2.14 27.52 36349.74 ING 14.96 -0.31 16.00 10.36 4.20 12.27 69006.37
BOE Tech 1.40 0.11 1.98 1.22 1.42 16.20 35.61 GlaxoSmh 1519.5 29.50 1745.56 1446.5 5.26 38.57 96236.68 DowChem 64.54 1.14 67.50 51.57 2.83 26.79 78961.14 Shrwin-Will 339.16 10.19 362.57 239.48 1.02 25.79 31680.99
MuenchRkv 176.55 -0.75 189.40 140.90 4.55 10.64 31217.06 Unilever 49.92 0.05 51.31 36.22 2.52 25.82 101623.15
Ch Coms Cons 10.36 0.04 11.74 8.09 2.18 8.69 5864.18 Glencore 352.80 9.35 357.00 171.50 0.76 30.55 65402.79 DukeEner 87.23 0.85 87.75 72.34 3.89 22.11 61056.67 SimonProp 159.04 5.46 219.41 150.15 4.24 28.59 49435.16
SAP 91.45 -4.48 96.38 66.19 1.22 31.40 128137.05 Norway (Kr)
Ch Evrbrght 3.76 0.13 4.06 3.38 5.93 5.11 3301.8 HSBC 742.80 6.60 772.00 518.17 5.25 96.49 191801.97 DuPont 82.66 1.48 86.36 66.02 1.82 29.78 71732.84 SouthCpr 40.72 1.60 41.52 24.90 0.58 33.79 31477.67
Siemens 120.35 -4.40 133.50 87.75 2.99 16.86 116675.41 DNB 149.00 1.20 157.40 96.95 3.52 14.82 31219.3
Ch Rail Cons 9.96 -0.10 11.98 8.61 1.78 8.30 2643.87 Imperial Brands 3242 72.50 4135.5 3112.5 4.79 30.53 40028.09 Eaton 70.70 -0.50 81.63 59.07 3.28 16.36 31447.36 Starbucks 54.36 1.66 64.87 50.84 1.71 26.13 78490.4
Volkswgn 135.75 -1.30 157.40 116.05 1.47 8.35 45688.66 Statoil 146.00 1.50 163.50 123.90 4.79 -23.68 61730.42
Ch Rail Gp 5.90 -0.05 7.71 5.55 1.73 9.63 3173.63 LlydsBkg 64.91 1.00 73.58 50.84 3.93 30.91 59987.03 eBay 34.68 -0.10 37.48 27.28 - 5.34 37118.54 StateSt 93.47 1.05 96.26 68.16 1.63 17.03 34953.61
ChConstBk 6.97 0.35 6.99 5.42 4.59 6.41 214233.47 Hong Kong (HK$) Telenor 156.00 0.10 160.50 122.50 4.60-130.32 30130.55 Ecolab 131.04 0.93 134.89 110.65 1.10 30.24 37922.98 Stryker 139.88 -4.41 148.84 106.48 1.17 31.49 52323.97
Natl Grid 970.20 9.90 1220.29 921.20 4.89 18.57 42847.43
China Vanke 22.95 1.15 24.20 17.40 - 9.65 3858.2 AIA 59.75 0.90 62.15 42.65 1.44 18.23 92232.29 Qatar (QR) Emerson 58.56 0.56 64.37 49.22 3.36 22.21 37479.55 Sychrony Fin 30.54 0.47 38.06 26.01 1.32 11.32 24289.54
Prudential 1821.5 10.50 1889.5 1290 2.16 24.29 60658.63
ChinaCitic 5.09 0.12 5.50 4.69 4.82 5.17 9684.42 BOC Hold 39.70 2.00 40.15 25.75 3.24 16.49 53662.46 QatarNtBk 131.00 -4.90 173.00 121.70 2.38 9.98 33225.02 EOG Res 84.51 0.42 109.37 83.29 0.79-173.96 48800.14 Target 55.01 -0.64 79.33 48.56 4.27 11.56 30048.21
RBS 255.80 -1.70 271.00 168.20 - -5.22 39123.42
ChinaLife 25.00 1.55 26.20 18.44 1.08 29.94 23783.26 Ch OSLnd&Inv 27.55 2.30 28.50 20.15 2.90 7.20 38589.71 EquityResTP 67.94 0.77 68.83 58.28 2.94 30.59 24955.26 TE Connect 78.49 0.78 85.20 60.38 1.94 13.51 27737.12
Russia (RUB) ReckittB 7381 124.00 8110.43 6496 2.08 24.74 66819.02
ChinaMBank 28.60 2.80 28.70 17.52 2.83 9.71 16786.26 ChngKng 68.25 0.40 70.50 46.50 2.20 12.85 32262.75 Exelon 38.30 0.31 38.78 29.82 3.34 20.44 36771.37 Tesla Mtrs 348.05 0.59 386.99 178.19 - -73.63 58085.03
Gzprm neft 117.85 1.85 160.62 111.46 7.20 2.64 47427.52 RELX 1667 -3.00 1728 1273 1.95 29.87 43960.95
ChinaMob 87.70 1.20 99.30 80.00 3.07 14.08 229574.8 Citic Ltd 11.80 0.18 12.72 10.66 2.67 9.93 43885.28 ExpScripts 60.79 0.23 77.50 57.80 - 10.77 35109.2 TexasInstr 80.98 1.01 84.65 66.30 2.30 20.42 80173.33
Lukoil 2915 86.00 3582 2601 6.90 8.54 42148.61 RioTinto 3661 231.50 3742.5 2253.5 3.25 17.72 64957.54
ChinaPcIns 37.50 2.80 38.35 26.35 3.15 24.04 13305.51 Citic Secs 16.32 0.36 18.68 15.36 3.61 15.34 4753.64 ExxonMb 76.72 0.08 93.22 76.05 4.03 31.04 325070.76 TheTrvelers 126.47 -1.42 130.37 103.45 2.14 12.74 34899.02
MmcNrlskNckl 9150 251.00 11199 7677 7.82 16.48 24614.47 RollsRoyce 906.50 5.50 994.50 635.00 0.51 -24.30 21482.4
ChMinsheng 7.87 0.24 9.48 7.33 4.11 5.10 6976.29 CK Hutchison 101.70 0.50 108.90 87.00 2.62 11.62 50157.7 Facebook 166.32 -1.09 175.49 113.55 - 37.53 394233.8 ThrmoFshr 177.22 4.65 182.87 139.07 0.35 31.34 69136.98
Novatek 603.80 7.10 800.70 590.20 2.27 10.88 31165.68 RylDShlA 2142.5 28.00 2295.5 1791 6.76 28.40 123521.47
ChMrchSecs RMB 18.15 0.06 20.09 15.57 0.83 21.24 13354.69 CNOOC 9.36 0.65 10.88 8.45 3.71 15.15 53427.38 Fedex 207.76 1.76 219.99 158.20 0.77 18.81 55733.54 TimeWrnr 101.42 0.23 103.34 74.27 1.63 18.65 78884.62
Rosneft 301.50 1.45 425.70 291.00 1.95 20.17 54319.58 Shire 3750 -14.50 5377 3603.5 0.62 74.94 43838.66
Chna Utd Coms RMB 8.38 0.91 9.29 4.06 - 375.53 26652.81 HangSeng 175.30 -2.80 180.00 134.60 3.42 20.09 42847.42 FordMtr 10.82 0.26 13.27 10.47 5.50 11.49 42207.77 TJX Cos 71.67 1.20 80.92 66.66 1.44 20.45 46103.61
Sberbank 180.51 11.01 185.34 136.20 1.10 7.19 66241.49 StandCh 777.10 25.70 860.00 599.10 - 1682.03 32935.92
ChShenEgy 19.20 0.52 20.80 13.42 1.95 10.77 8342.36 HK Exc&Clr 214.00 2.40 233.20 177.60 2.46 41.54 33695.61 Franklin 42.67 0.84 47.65 33.02 1.81 14.02 23797.12 T-MobileUS 63.74 0.74 68.88 44.35 - 27.36 52971.04
Surgutneftegas 26.68 0.29 32.87 24.09 - -11.34 16203.52 Tesco 184.20 7.65 219.40 160.65 - 227.41 19422.98
ChShpbldng RMB 6.21 0.00 8.14 5.87 - 152.00 17109.4 MTR 45.35 -0.30 50.00 37.20 2.46 24.79 34799.5 GenDyn 199.05 0.32 205.90 148.76 1.61 18.82 59607.87 UnionPac 105.25 1.35 115.15 87.06 2.26 19.54 84240.51
Saudi Arabia (SR) Vodafone 219.60 0.55 235.50 186.50 5.48 -32.79 75295.4
ChStConEng RMB 10.28 0.30 11.45 6.06 1.94 10.64 45859.88 SandsCh 34.60 -0.75 39.30 29.65 5.74 26.65 35710.41 GenElectric 24.49 -0.06 32.38 24.30 3.95 22.22 212033.1 UPS B 113.40 0.06 120.44 102.12 2.88 28.09 78106.97
AlRajhiBnk 66.30 2.70 71.70 48.60 3.34 12.92 28727.71 WPP 1437 -127.00 1928.07 1382 3.94 10.59 23585.74
ChUncHK 11.62 -0.32 13.24 8.40 - 145.10 35575.3 SHK Props 125.20 2.60 125.80 96.50 3.23 8.93 46358.51 GenMills 55.02 -2.12 71.96 53.24 3.48 19.91 31543.78 USBancorp 52.07 0.39 56.61 42.17 2.13 15.87 87101.14
Tencent 328.40 -1.00 341.00 179.60 0.14 57.56 398772.68 Natnlcombnk 53.00 2.70 58.00 32.00 1.16 11.04 28264.4 United States of America ($)
CNNC Intl RMB 7.77 -0.03 8.11 6.59 1.13 27.30 4931.26 GenMotors 35.60 0.77 38.55 30.13 4.23 5.64 51876.61 UtdHlthcre 194.36 3.54 196.04 132.39 1.32 24.16 187918.9
SaudiBasic 98.60 0.60 105.40 76.00 4.99 18.27 78873.69 21stC Fox A 27.25 -0.01 32.60 23.33 1.36 16.13 28681.63
CSR 6.85 -0.14 7.99 6.66 2.58 15.42 3827.96 India (Rs) GileadSci 73.79 1.68 82.07 63.76 2.66 8.08 96364.3 UtdTech 115.07 -0.41 124.79 97.62 2.36 17.32 91914.78
SaudiTelec 74.80 1.10 78.90 51.00 5.27 17.18 39890.14 3M 202.13 -1.40 214.57 163.85 2.24 23.25 120624.54
Daqin RMB 9.05 0.01 9.45 6.15 4.95 16.52 20188.21 Bhartiartl 432.95 16.60 434.35 283.05 0.31 56.65 27025.94 GoldmSchs 222.47 0.32 255.15 157.77 1.20 11.81 86068.11 ValeroEngy 67.67 2.92 71.40 51.17 3.80 14.38 29887.4
Singapore (S$) AbbottLb 49.35 0.61 51.13 37.38 2.18 53.84 85742.83
Gree Elec Apl 0.07 0.00 0.25 0.04 - -2.09 115.09 HDFC Bk 1762.5 -2.90 1809.15 1158 0.61 31.69 70875.5 Halliburton 39.01 0.02 58.78 38.18 1.83-254.76 34000.94 Verizon 48.68 0.99 54.83 42.80 4.86 15.81 198585.58
DBS 20.43 -0.10 22.25 14.80 2.93 12.32 38511.52 Abbvie 72.48 2.52 75.04 55.06 3.34 18.23 115539.98
GuosenSec RMB 13.94 0.10 18.80 12.39 4.29 23.72 4591.36 Hind Unilevr 1179.7 2.40 1209 781.95 1.41 56.37 39873.81 HCA Hold 79.51 1.98 91.03 67.00 - 10.50 28722.96 VertexPharm 153.27 5.14 167.86 71.46 - 212.60 38642.26
JardnMt US$ 67.06 1.55 67.50 52.90 2.22 7.06 48489.99 Accenture 129.39 1.95 130.67 108.83 1.87 23.00 85932.31
HaitongSecs 12.76 0.24 15.24 12.28 4.18 14.75 5562.13 HsngDevFin 1757.35 -1.90 1799.9 1183.15 0.94 26.55 43723.42 Hew-Pack 19.31 0.80 19.78 13.55 2.65 13.29 32505.2 VF Cp 63.42 0.64 64.90 48.05 2.55 23.69 24963.47
JardnStr US$ 43.81 0.01 44.40 31.61 0.67 6.63 48495.31 Adobe 151.45 3.48 153.00 97.87 - 52.90 74726.29
Hngzh HikVDT RMB 31.05 -0.40 40.16 22.61 1.26 36.08 33813.47 ICICI Bk 297.70 4.55 314.45 217.36 1.54 18.61 29819.35 HiltonWwde 63.48 2.42 67.79 46.09 1.12 70.37 20581.01 Viacom 29.19 0.60 46.72 27.86 3.53 9.38 10295.85
OCBC 10.98 -0.16 11.49 8.33 3.20 12.62 33921.55 AEP 73.57 1.41 73.77 57.89 3.22 49.95 36184.7
Hunng Pwr 5.05 -0.02 6.25 4.60 6.57 25.98 3034.71 Infosys 912.15 -108.70 1082.7 860.00 2.76 15.28 32718.02 HomeDep 149.65 2.16 160.86 119.20 2.06 22.01 176410.05 Visa Inc 103.35 0.84 104.20 75.17 0.61 38.75 189065.39
SingTel 3.75 -0.01 4.28 3.59 4.66 15.69 45164.66 Aetna 156.10 1.65 161.69 104.59 0.66 47.07 51840.81
IM Baotou Stl RMB 2.70 -0.02 3.17 1.96 - 148.39 8928.59 ITC 281.45 1.45 354.80 222.00 1.55 33.00 53501.74 Honywell 136.82 1.87 140.21 105.25 1.90 20.92 104061.07 Walgreen 81.13 1.10 88.00 75.18 1.84 20.54 86816.93
UOB 23.59 -0.01 24.60 17.93 2.97 12.65 28872.22 Aflac 80.91 1.07 81.89 66.50 2.08 12.35 31977.99
In&CmBkCh 5.96 0.36 5.96 4.43 4.62 6.62 66134.46 L&T 1131.7 -2.30 1222.63 863.40 1.05 26.16 24749.19 HumanaInc 253.00 5.72 255.27 163.50 0.52 24.86 36562.85 WalMartSto 78.63 -0.68 81.99 65.28 2.54 17.95 237030.07
AirProd 146.01 0.25 150.45 129.00 2.46 23.68 31823.96
IndstrlBk RMB 17.96 0.84 18.52 14.99 3.38 6.37 51343.76 OilNatGas 159.45 -1.15 211.80 155.20 4.69 9.89 31954.11 South Africa (R) IBM 143.74 4.04 182.79 139.13 4.01 11.49 133957.1 WellsFargo 51.77 0.09 59.99 43.55 3.02 12.57 256983.41
Alexion 137.54 4.14 145.42 96.18 - 60.05 30696.9
Kweichow RMB 492.99 0.30 501.10 287.56 1.34 33.15 92924.16 RelianceIn 1568.05 0.95 1664.9 930.00 - 14.90 79627.45 Firstrand 57.26 2.06 57.43 43.38 3.93 13.44 24563.56 IllinoisTool 136.81 1.14 150.29 111.50 1.88 22.33 47083.08 Williams Cos 29.39 0.32 32.69 27.35 4.70-951.27 24295.27
Allegran 221.81 -2.18 256.80 184.50 0.33 -20.30 74152.46
Midea 1.64 0.02 1.87 1.50 6.41 21.97 45.09 SBI NewA 280.30 -0.55 315.30 235.00 0.94 895.29 37783.52 MTN Grp 125.00 -1.10 134.94 104.76 8.61 -87.10 18012.34 Illumina 192.19 2.87 199.95 119.37 - 37.70 28059.74 Yahoo - - - - - - -
Allstate 92.02 -0.90 95.25 66.55 1.52 15.17 33252.31
New Ch Life Ins 53.35 3.15 56.10 31.00 - 28.17 7053.27 SunPhrmInds 483.00 -5.25 818.50 432.70 0.21 16.50 18096.67 Naspers N 3010 110.00 3036.53 1925.98 0.17 33.36 100887 Intcntl Exch 65.41 0.82 67.48 52.27 1.12 24.52 38493.3 Yum!Brnds 75.83 0.42 77.13 59.57 2.35 27.17 26144.16
Alphabet 930.50 4.32 1008.61 743.59 - 30.56 277330.8
PetroChina 5.00 0.18 6.38 4.72 1.09 28.51 13487.05 Tata Cons 2496.6 10.95 2708.95 2051.9 2.11 19.41 74631.43 South Korea (KRW) Intel 34.67 -0.34 38.45 33.23 3.01 13.35 162914.33 Venezuela (VEF)
Altria 64.08 0.39 77.79 60.01 3.78 8.55 122941.81
PingAnIns 62.80 3.45 64.90 38.00 0.37 - 59795.03 Indonesia (Rp) HyundMobis 252500 7500 293500 212000 1.44 11.15 21785.35 Intuit 137.35 3.24 143.81 103.22 0.96 39.42 35191.39 Bco de Vnzla 1150 -49.99 1200 95.00 - - 1413.96
Amazon 945.26 -13.21 1083.31 710.10 - 172.85 454083.54
PngAnBnk RMB 11.11 0.69 11.34 8.54 1.14 8.72 28202.97 Bk Cent Asia 19100 200.00 19150 13950 0.94 21.66 34931.92 KoreaElePwr 44250 -50.00 60500 40050 4.65 4.73 25177.85 John&John 131.68 -0.95 137.08 109.32 2.50 21.49 353429.08 Bco Provncl 33000 1200 34799.99 2200 - 34.10 1199.58
AmerAir 45.25 -0.30 54.48 33.90 0.91 10.64 22037.17
Pwr Cons Corp RMB 8.27 0.01 9.00 5.96 0.93 17.38 11912.64 SK Hynix 68400 2000 73000 34900 0.86 7.90 44135.04 JohnsonCn 38.83 1.78 46.17 36.74 2.66 -22.00 36205.04 Mrcntl Srvcs 81500 5500 81999.99 4860 0.01 238.69 1672.73
Israel (ILS) AmerExpr 85.47 0.09 87.78 59.50 1.48 17.56 75553.74
SaicMtr RMB 30.47 1.08 32.84 20.93 4.45 10.54 50408.78 SmsungEl 2351000-1000.00 2566000 1456000 1.57 12.91 270406.14 JPMrgnCh 91.89 1.15 95.22 65.11 2.17 13.75 323357.64
TevaPha 58.95 -5.40 199.00 57.05 8.49 801.60 16654.15 AmerIntGrp 60.78 -0.56 67.47 57.35 2.09 510.88 54909
ShenwanHong 0.21 -0.01 0.35 0.16 - -3.56 239.19 Spain () Kimb-Clark 121.52 0.13 136.21 111.30 3.08 20.46 42933.36 Closing prices and highs & lows are in traded currency (with variations for that
Italy () AmerTower 144.24 4.24 146.09 99.72 1.64 58.19 61904.55
ShgPdgBk RMB 12.78 0.25 14.02 11.16 2.81 6.94 53892.34 KinderM 19.17 0.62 23.36 18.23 2.59 62.37 42810.97 country indicated by stock), market capitalisation is in USD. Highs & lows are
Enel 5.10 0.03 5.12 3.57 1.68 21.40 61495.91 BBVA 7.46 -0.04 7.93 5.10 3.72 13.74 59054.07 Amgen 169.74 2.45 184.21 133.64 2.52 15.65 123855
Sinopec Corp 5.86 0.19 6.57 5.18 2.81 10.51 19114.16 Kraft Heinz 82.60 -1.89 97.77 79.69 2.96 28.54 100627.54 based on intraday trading over a rolling 52 week period.
ENI 13.11 -0.14 15.92 12.18 5.81 65.54 56563.04 BcoSantdr 5.47 -0.02 6.25 3.69 3.60 12.48 94697.28 Anadarko 42.36 0.19 73.33 41.22 0.47 -11.10 23736.77
Sinopec Oil RMB 3.20 0.00 4.45 3.02 - -2.88 1353.25 Kroger 21.74 -1.12 36.44 20.46 2.13 13.16 19508.31 ex-dividend
Generali 15.23 -0.28 16.08 10.50 4.38 12.46 28239.07 CaixaBnk 4.36 -0.05 4.51 2.09 2.34 23.43 30961 Anthem 192.68 1.66 196.48 114.85 1.39 18.15 50594.82
Denmark (kr) Iberdrola 6.94 -0.07 7.30 5.53 3.86 18.05 52050.95 L Brands 36.56 0.36 77.72 35.00 6.53 9.69 10486.99 ex-capital redistribution
IntSPaolo 2.84 -0.08 2.95 1.85 5.97 8.47 53473.49 Aon Cp 138.05 1.53 141.45 107.19 0.97 36.36 35111.27
DanskeBk 244.30 -0.10 259.50 186.50 3.42 12.23 36523.47 Inditex 33.41 -0.04 36.90 29.83 1.37 35.20 123619.7 LasVegasSd 60.12 0.11 66.22 49.89 4.95 25.38 47574.33 # price at time of suspension
Luxottica 48.01 0.13 56.90 39.92 1.72 29.29 27641.63 Apple 159.86 2.36 162.51 102.53 1.45 18.26 825713.35
MollerMrsk 13000 200.00 14260 8750 3.34 -22.14 20871.37 Repsol 14.11 0.06 15.22 11.51 4.12 13.54 25585.95 LibertyGbl 33.75 0.35 37.69 28.17 - 14.77 7610.22
Unicred 17.78 -0.16 30.80 11.93 3.14 -1.91 46980.75 ArcherDan 41.75 0.48 47.88 40.22 3.01 17.18 23486.35
NovoB 289.00 2.60 319.00 218.20 2.44 20.34 90512.9 Telefonica 9.11 -0.06 10.63 7.61 5.64 19.53 54503.66 Lilly (E) 78.79 1.72 86.72 64.18 2.68 36.96 86746.92
AT&T 37.99 0.62 43.03 35.81 5.26 18.08 233258.6

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
Chna Utd Coms 8.38 8.36 0.02 0.24 0.91 12.2 12.18 Infosys 912.15 912.15 0.00 0.00 -108.70 -10.6 -6.93 Aug 25 date Coupon S* M* F* price yield yield yield US Aug 25 date Coupon S* M* F* price yield yield yield US
ChinaMBank 28.60 28.00 0.60 2.14 2.80 10.9 15.09 WPP 1437.00 1462.00 -25.00 -1.71 -127.00 -8.1 -7.94 High Yield US$ US$
Ch OSLnd&Inv 27.55 27.80 -0.25 -0.90 2.30 9.1 6.78 Medtronic 79.06 79.24 -0.18 -0.23 -4.35 -5.2 -7.99 Navient Corporation 03/20 8.00 B+ Ba3 BB 109.71 4.03 0.01 0.31 2.69 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 112.57 4.52 0.01 0.16 2.35
BOE Tech 1.40 1.39 0.01 0.72 0.11 8.5 3.70 Nomura 610.10 607.80 2.30 0.38 -31.70 -4.9 -6.91 High Yield Euro FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 120.73 4.42 0.01 -0.05 2.25
ChinaPcIns 37.50 36.80 0.70 1.90 2.80 8.1 9.65 Kroger 21.74 21.10 0.64 3.03 -1.12 -4.9 -8.19 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Nicor Gas Company 02/28 6.58 A Aa3 AA- 117.58 4.51 0.01 -0.03 2.34
CNOOC 9.36 9.11 0.25 2.74 0.65 7.5 8.58 MitsubishiEle 1624.00 1635.00 -11.00 -0.67 -81.50 -4.8 -4.13 NationsBank Corp. 03/28 6.80 BBB Baa3 A- 121.56 4.29 0.01 -0.07 2.12
RioTinto 3661.00 3645.50 15.50 0.43 231.50 6.8 5.35 MitUFJFin 664.30 660.00 4.30 0.65 -28.80 -4.2 -5.83 Emerging US$ GTE Corporation 04/28 6.94 BBB+ Baa2 A- 124.96 4.07 0.01 -0.08 1.90
PngAnBnk 11.11 10.93 0.18 1.65 0.69 6.6 1.46 GenMills 55.02 55.68 -0.66 -1.19 -2.12 -3.7 -0.18 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 United Utilities PLC 08/28 6.88 BBB+ Baa1 A- 122.64 4.31 0.01 -0.22 2.14
ChinaLife 25.00 24.00 1.00 4.17 1.55 6.6 -1.38 Nppn Stl 2584.00 2555.00 29.00 1.14 -94.00 -3.5 -2.27 Peru 03/19 7.13 BBB+ A3 BBB+ 109.10 1.43 -0.01 -0.05 0.09
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 Euro
Sberbank 180.51 179.80 0.71 0.39 11.01 6.5 12.66 MondelezInt 41.48 41.88 -0.40 -0.96 -1.46 -3.4 -6.24 AT&T Inc. 12/29 2.60 BBB+ Baa1 A- 103.63 2.27 0.01 0.00 -
AtlasCpcoB 284.20 277.30 6.90 2.49 17.20 6.4 5.34 Woolworths 26.08 26.02 0.06 0.23 -0.89 -3.3 -0.65 Brazil 01/20 12.75 BB Ba2 BB 123.25 2.60 -0.01 -0.93 1.26
Brazil 01/22 12.50 BB Ba2 BB 112.50 8.96 0.00 0.24 7.20 AT&T Inc. 12/29 2.60 BBB+ Baa1 A- 103.52 2.26 0.01 0.02 -
In&CmBkCh 5.96 5.76 0.20 3.47 0.36 6.4 10.58 EDF 9.10 9.12 -0.03 -0.27 -0.31 -3.3 5.42 Citigroup Inc. 02/30 4.25 BBB Baa3 A- 117.17 2.29 0.01 -0.04 -
New Ch Life Ins 53.35 51.55 1.80 3.49 3.15 6.3 5.33 Ericsson 47.50 47.81 -0.31 -0.65 -1.60 -3.3 -9.70 Poland 03/22 5.00 BBB+ A2 A- 108.50 2.99 0.00 -0.11 1.23
Turkey 03/23 3.25 - Ba1 BB+ 84.81 6.55 0.00 0.03 4.79 HBOS plc 03/30 4.50 BBB- Baa2 A- 117.74 2.39 0.01 -0.11 -
Vale 33.52 33.88 -0.36 -1.06 1.97 6.2 9.57 MitsubEst 1886.50 1897.00 -10.50 -0.55 -60.00 -3.1 -6.19
Colombia 03/23 2.63 BBB Baa2 BBB 98.00 3.04 0.01 -0.06 1.28 Yen
PingAnIns 62.80 62.80 0.00 0.00 3.45 5.8 8.65 Stryker 139.88 138.77 1.11 0.80 -4.41 -3.1 -4.23
Russia 05/26 4.75 - - BBB- 105.43 4.05 0.01 -0.12 1.88 Enagas Transportes, S.A.U. 09/39 3.23 A- Baa2 A- 106.57 2.85 0.00 0.01 -
Keyence 56020.00 56850.00 -830.00 -1.46 2830.00 5.3 9.07 Sony 4199.00 4168.00 31.00 0.74 -129.00 -3.0 -6.38
BOC Hold 39.70 38.45 1.25 3.25 2.00 5.3 5.17 CVS 75.35 75.39 -0.04 -0.05 -2.31 -3.0 -4.50 Turkey 03/27 6.00 - Ba1 BB+ 108.35 4.96 0.01 -0.14 2.79 Sterling
ChConstBk 6.97 6.74 0.23 3.41 0.35 5.3 8.74 Costco 152.45 151.33 1.12 0.74 -4.63 -2.9 -0.47 Emerging Euro Electricite de France (EDF) 05/28 6.25 A- A3 A- 134.87 2.51 0.02 -0.15 0.34
China Vanke 22.95 23.05 -0.10 -0.43 1.15 5.3 1.32 Gree Elec Apl 0.07 0.07 0.00 -2.94 0.00 -2.9 -57.42 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 HSBC Holdings plc 08/28 2.63 A A1 AA- 103.25 2.34 0.03 -0.08 0.17
IndstrlBk 17.96 17.44 0.52 2.98 0.84 4.9 -0.22 Fanuc 21085.00 21030.00 55.00 0.26 -625.00 -2.9 -6.25 Mexico 02/20 5.50 BBB+ A3 BBB+ 112.25 0.50 -0.01 -0.05 -0.84 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poors, M -
Mexico 04/23 2.75 BBB+ A3 BBB+ 108.25 1.23 0.00 -0.10 -0.53 Moodys, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BB+ Baa2 BBB- 111.05 1.84 0.01 -0.15 -0.33
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poors, M - Moodys, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Aug 25 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Aug 25 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 1.00-1.25 15-06-2017 1.00 1.00-1.25 0.25-0.50 Index change change change 1 month 1 year VIX 11.28 -0.95 12.23 23.01 8.84 Aug 25 Price Yield Day Week Month Year High Low m
US Prime 4.25 15-06-2017 3.75 4.25 3.50 Markit IBoxx VXD 11.19 -0.40 11.59 23.23 3.59 Tr 1pc '17 100.02 0.14 133.33 133.33 100.00 55.56 105.16 100.00 32.03
US Discount 0.75 15-06-2017 0.75 1.75 1.00 ABF Pan-Asia unhedged 184.66 0.05 -0.03 6.61 0.07 -1.76 VXN 15.52 -0.45 15.97 23.35 9.75 Tr 5pc '18 102.57 0.10 -9.09 -28.57 -56.52 -9.09 107.45 102.57 35.24
Euro Repo 0.00 16-03-2016 0.05 0.00 0.00 Corporates( ) 345.64 0.07 1.13 4.70 1.44 0.59 VDAX - - - - - Tr 4.5pc '19 106.62 0.15 -11.76 -25.00 -31.82 114.29 111.19 106.62 36.35
UK Repo 0.25 04-08-2016 0.25 0.25 0.25 Corporates($) 275.99 -0.13 0.28 4.84 0.28 4.84 CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 111.62 0.14 -12.50 -22.22 -30.00 55.56 116.42 111.59 33.31
Japan O'night Call 0.00-0.00 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates() 225.57 -0.01 0.54 1.94 0.74 0.59 Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 104.17 0.27 -3.57 -10.00 -20.59 22.73 105.71 103.47 32.46
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 -1.25--0.25 Eurozone Sov() 232.14 -0.03 0.60 -0.23 0.79 -3.15 Tr 4pc '22 116.45 0.33 -5.71 -10.81 -23.26 37.50 120.79 115.73 37.95
Gilts( ) 324.96 0.09 1.83 2.48 2.07 -3.52 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 131.19 0.73 -1.35 -3.95 -15.12 37.74 137.51 129.09 35.08
INTEREST RATES: MARKET Global Inflation-Lkd 261.02 0.05 0.63 5.61 0.92 -0.71 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 101.42 1.10 0.00 -0.90 -12.00 42.86 137.98 98.71 13.04
Over Change One Three Six One Markit iBoxx Non-Gilts 340.18 0.06 1.17 4.23 1.43 0.29 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 137.50 1.43 0.00 -0.69 -8.92 43.00 147.95 131.34 35.44
Aug 25 (Libor: Aug 24) night Day Week Month month month month year Overall ($) 239.29 -0.12 0.57 3.62 0.57 3.62 Australia 10/19 2.75 101.91 1.84 0.00 0.03 0.02 0.41 Tr 4.25pc '36 142.34 1.60 -0.62 -0.62 -8.05 40.35 154.94 134.98 29.76
US$ Libor 1.17778 0.000 -0.001 -0.001 1.23389 1.31722 1.45389 1.72344 Overall( ) 326.39 0.08 1.63 2.99 1.88 -2.42 11/28 2.75 100.23 2.73 0.00 0.03 -0.03 0.00 Tr 4.5pc '42 156.99 1.71 -0.58 -1.16 -7.57 37.90 173.69 147.41 26.64
Euro Libor -0.42900 0.000 0.000 -0.001 -0.40000 -0.37257 -0.30700 -0.20471 Overall() 228.59 -0.02 0.60 0.25 0.75 -2.13 Austria 10/19 0.25 101.79 -0.58 0.00 0.00 0.00 0.00 Tr 3.75pc '52 156.06 1.64 -0.61 -1.20 -7.87 38.98 176.37 143.66 23.59
Libor 0.22250 0.000 -0.001 0.000 0.25131 0.27994 0.40575 0.59881 Treasuries ($) 225.51 -0.13 0.76 2.92 0.76 2.92 04/27 0.50 99.18 0.60 0.02 0.01 -0.12 0.00 Tr 4pc '60 175.09 1.57 -0.63 -1.26 -7.65 41.44 201.19 160.01 23.21
Swiss Fr Libor -0.001 -0.78500 -0.72640 -0.65340 -0.50360 FTSE Belgium 09/19 3.00 107.49 -0.57 0.00 0.00 0.00 0.00 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per 100 nominal of stock.
Yen Libor -0.003 -0.04121 -0.02850 -0.00721 0.11100 Sterling Corporate () 118.22 -0.01 - - 0.82 -4.11 06/27 0.80 100.99 0.70 0.00 -0.03 -0.12 0.00
Euro Euribor
Sterling CDs
0.000
0.000
-0.37100
0.23000
-0.32900
0.27000
-0.27200
0.41500
-0.15900 Euro Corporate () 107.40 -0.09 - - 0.56 -3.29 Canada 08/19 0.75 99.03 1.27 -0.02 0.01 -0.08 0.00 GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts () 773.91 2.97 - - -4.98 -11.29 06/28 2.00 100.62 1.94 -0.02 -0.01 0.00 0.00
US$ CDs 0.000 1.19000 1.27000 1.39000 Eurozone Govt Bond 111.94 -0.12 - - 0.50 -5.80 Denmark 11/20 0.25 102.37 -0.48 0.00 0.00 0.00 0.00 Price Indices Day's Total Return Return
Euro CDs 0.000 -0.43500 -0.39500 -0.32500 11/27 0.50 99.94 0.51 0.00 -0.02 -0.17 0.00 Fixed Coupon Aug 25 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series 1 Up to 5 Years 96.32 0.03 2434.43 0.38 0.14 0.25
Short 7 Days One Three Six One Index change change change high low Finland 09/19 1.75 100.36 1.58 0.01 0.03 -0.02 0.44
07/28 2.75 122.37 0.63 0.02 0.00 -0.14 0.00 2 5 - 10 Years 186.75 0.06 3523.18 1.33 -0.43 0.76
Aug 25 term notice month month month year Markit iTraxx 3 10 - 15 Years 218.47 0.07 4282.91 2.07 -2.12 1.26
Euro -0.50 -0.35 -0.50 -0.35 -0.51 -0.36 -0.47 -0.32 -0.40 -0.25 -0.38 -0.13 Crossover 5Y 369.26 -12.07 35.21 40.34 390.04 288.69 France 11/20 0.25 102.22 -0.43 0.00 0.00 0.00 0.00
4 5 - 15 Years 194.22 0.06 3709.82 1.65 -1.04 1.03
Sterling 0.18 0.28 0.18 0.28 0.22 0.32 0.34 0.49 0.45 0.60 Europe 5Y 85.00 -1.98 7.21 7.01 90.43 67.59 10/22 2.25 112.27 -0.12 0.00 0.00 0.00 0.00
5 Over 15 Years 342.91 0.23 5209.48 3.53 -7.08 1.64
Swiss Franc - - - - - - - - - - - - Japan 5Y 70.05 -2.51 2.21 -0.87 93.03 64.22 05/27 1.00 102.87 0.69 0.00 -0.02 -0.11 0.00
7 All stocks 183.66 0.12 3607.51 1.97 -3.33 1.43
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 111.86 -3.89 10.86 12.50 121.66 80.36 Germany 10/19 0.25 102.08 -0.72 0.00 0.00 0.00 0.00
US Dollar 1.20 1.30 1.13 1.23 1.21 1.31 1.25 1.35 1.46 1.56 1.68 1.78 08/23 2.00 113.25 -0.21 0.00 0.00 0.00 0.00 Day's Month Year's Total Return Return
Markit CDX 08/27 0.50 101.18 0.38 0.00 -0.04 -0.16 0.00
Japanese Yen -0.15 0.05 -0.20 0.00 -0.25 0.05 -0.20 0.10 -0.15 0.15 -0.10 0.20 Index Linked Aug 25 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 198.09 -3.26 -11.46 -11.68 218.09 197.56 08/46 2.50 133.40 1.14 0.01 -0.02 -0.18 0.69
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: 1 Up to 5 Years 314.92 0.03 0.29 0.10 2473.22 0.29 1.55
Nth Amer High Yld 5Y 328.29 0.17 -17.13 -10.17 353.95 327.35 Greece 04/19 4.75 102.66 3.05 0.02 -0.12 1.14 -5.36
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 2 Over 5 years 720.96 0.52 3.98 -0.63 5372.52 3.98 -0.11
Nth Amer Inv Grade 5Y 63.53 0.28 -4.09 -3.35 69.24 62.53 02/27 3.00 87.90 5.49 -0.01 -0.10 0.31 -2.53
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 3 5-15 years 483.67 0.14 1.76 0.50 3747.27 1.76 1.55
Ireland 10/19 5.90 113.70 -0.46 0.00 0.00 0.00 0.00 4 Over 15 years 926.24 0.65 4.73 -1.02 6751.33 4.73 -0.67
05/26 1.00 102.27 0.73 0.01 -0.01 -0.10 0.31 5 All stocks 651.71 0.48 3.69 -0.56 4928.26 3.69 0.03
Italy 10/19 0.05 100.16 -0.03 0.00 0.00 0.00 0.00
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 11/21 0.35 99.20 0.55 -0.01 0.05 -0.04 0.00 Yield Indices Aug 25 Aug 24 Yr ago Aug 25 Aug 24 Yr ago
06/27 2.20 100.98 2.10 -0.01 0.07 -0.03 0.00 5 Yrs 0.38 0.39 0.16 20 Yrs 1.73 1.74 1.25
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
03/47 2.70 90.06 3.25 -0.01 0.08 -0.02 1.10 10 Yrs 1.09 1.09 0.69 45 Yrs 1.56 1.57 1.12
Crude Oil Sep 47.80 0.19 Corn Sep 338.50 -3.75 Aug 24 Aug 24 Prev return stock Market stocks
Japan 08/19 0.10 100.51 -0.16 0.00 0.00 0.00 0.00 15 Yrs 1.55 1.56 1.08
Brent Crude Oil 52.30 0.18 Wheat Sep 409.50 0.75 Can 4.25%' 21 117.00 0.243 0.245 0.39 5.18 72495.60 7
06/22 0.10 101.13 -0.13 0.00 0.00 0.00 0.00
RBOB Gasoline Aug 1.68 0.00 Soybeans Sep 939.75 -1.50 Fr 2.25%' 20 111.23 -1.491 -1.462 0.16 20.31 221212.29 15
06/27 0.10 100.85 0.01 -0.01 -0.03 -0.06 0.00 inflation 0% inflation 5%
Heating Oil Sep 1.61 0.02 Soybeans Meal Sep 296.90 -0.70 Swe 0.25%' 22 114.03 -1.793 -1.789 0.89 29.26 238832.67 8
06/47 0.80 99.20 0.83 0.01 -0.02 -0.04 0.00 Real yield Aug 25 Dur yrs Previous Yr ago Aug 25 Dur yrs Previous Yr ago
Natural Gas Aug 2.90 -0.05 Cocoa (ICE Liffe)X Sep 1512.00 23.00 UK 2.5%' 20 370.12 -2.720 -2.717 0.33 6.58 645477.76 27
Netherlands 01/20 0.25 102.14 -0.64 0.00 0.00 0.00 0.00 Up to 5 yrs -2.32 1.72 -2.29 -2.19 -3.18 1.72 -3.18 -2.75
Ethanol - - Cocoa (ICE US) Sep 1937.00 0.00 UK 2.5%' 24 370.45 -2.155 -2.153 1.32 6.82 645477.76 27
07/27 0.75 102.25 0.52 0.01 -0.03 -0.14 0.00 Over 5 yrs -1.69 24.46 -1.66 -1.77 -1.71 24.55 -1.69 -1.80
Uranium Sep 18.10 0.00 Coffee(Robusta)X Sep 2143.00 26.00 UK 2%' 35 271.89 -1.722 -1.713 2.84 9.08 645477.76 27
Carbon Emissions - - Coffee (Arabica) Sep 129.95 3.55 New Zealand 04/20 3.00 102.45 2.04 -0.01 0.03 -0.08 0.22 5-15 yrs -1.96 8.25 -1.94 -1.96 -2.09 8.26 -2.07 -2.09
US 0.625%' 21 102.75 -0.082 -0.110 0.07 35.84 1230519.82 38
White SugarX 384.30 1.90 04/27 4.50 113.39 2.90 -0.01 0.06 -0.09 0.61 Over 15 yrs -1.66 29.57 -1.64 -1.75 -1.68 29.61 -1.66 -1.77
Diesel - - US 3.625%' 28 131.80 0.545 -0.110 0.62 16.78 1230519.82 38
Sugar 11 14.04 0.03 Norway 05/19 4.50 106.74 0.57 -0.02 -0.02 -0.04 0.01 All stocks -1.69 22.74 -1.67 -1.77 -1.72 22.86 -1.70 -1.80
Unleaded (95R) - - Representative stocks from each major market Source: Merill Lynch Global Bond Indices Local currencies. Total market
Base Metals ( LME 3 Months) Cotton Oct 68.88 -1.24 02/27 1.75 101.74 1.55 0.00 -0.02 -0.10 0.00 See FTSE website for more details www.ftse.com/products/indices/gilts
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium 2067.50 -30.50 Orange Juice Sep 135.35 -2.90 Portugal 06/20 4.80 113.00 0.14 -0.04 0.02 -0.10 -1.42 2017 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Aluminium Alloy 1800.00 175.00 Palm Oil - - 04/27 4.13 110.63 2.84 0.00 0.10 -0.03 0.00 Gilt Closing Prices information contained herein is proprietary to
Copper 6699.00 3.00 Live Cattle Oct 106.80 -0.08 BONDS: TEN YEAR GOVT SPREADS Spain 01/19 0.25 100.85 -0.35 0.00 0.00 0.00 0.00 Tradeweb; may not be copied or re-distributed; is not warranted to be
Lead 2326.00 -33.00 Feeder Cattle Sep 142.85 0.80 10/27 1.45 98.61 1.60 0.00 0.06 0.00 0.00 accurate, complete or timely; and does not constitute investment advice.
Nickel 11445.00 -300.00 Lean Hogs Oct 62.93 -1.00 Spread Spread Spread Spread Sweden 07/19 1.50 100.01 1.50 0.01 0.02 -0.07 0.00 Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Tin 20325.00 -150.00 Bid vs vs Bid vs vs 11/26 1.00 103.52 0.61 0.01 -0.02 -0.10 0.50
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland 07/20 2.25 108.65 -0.74 0.00 0.00 0.00 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Zinc 3067.50 -44.00
Precious Metals (PM London Fix) Aug 24 Month Year 06/27 3.25 133.55 -0.13 0.00 0.00 0.00 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Australia 2.73 2.35 0.56 Italy 2.10 1.72 -0.07
Gold 1285.30 -3.70 S&P GSCI Spt 379.06 1.12 - United Kingdom 07/19 1.75 102.98 0.18 -0.01 -0.06 -0.08 0.04 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Austria 0.60 0.22 -1.57 Japan 0.01 -0.37 -2.16
Silver (US cents) 1702.00 9.00 DJ UBS Spot 83.29 0.74 - Belgium 0.70 0.32 -1.47 Netherlands 0.52 0.14 -1.65 07/23 0.75 100.78 0.61 0.00 0.00 0.00 0.00 loss arising from the reliance on or use of the listed information. For all queries e-mail
Platinum 977.00 -2.00 R/J CRB TR 179.93 1.00 -3.61 Canada 1.94 1.56 -0.23 Norway 1.55 1.17 -0.62 07/27 1.25 101.37 1.10 0.00 -0.03 -0.17 0.00 ft.reader.enquiries@morningstar.com
Palladium 940.00 5.00 M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark 0.51 0.13 -1.66 Portugal 2.84 2.46 0.67 07/47 1.50 95.15 1.71 -0.01 -0.05 -0.15 0.00
Bulk Commodities UBS Bberg CMCI TR 13.97 2.30 - Finland 0.63 0.25 -1.54 Spain 1.60 1.22 -0.57 United States 07/19 1.38 100.07 1.34 0.00 0.02 -0.02 0.00 Data provided by Morningstar | www.morningstar.co.uk
Iron Ore (Platts) 76.85 0.40 LEBA EUA Carbon 5.04 0.00 -13.55 France 0.69 0.32 -1.48 Switzerland -0.13 -0.50 -2.29 07/22 1.88 100.54 1.76 -0.02 0.00 -0.08 0.00
Iron Ore (The Steel Index) 76.50 0.00 LEBA CER Carbon 0.20 0.00 -50.00 Germany 0.38 0.00 -1.79 United Kingdom 1.10 0.72 -1.07 08/27 2.25 100.72 2.17 -0.03 -0.03 0.00 0.00
GlobalCOAL RB Index 87.00 0.00 LEBA UK Power 635.00 -64.02 -73.81 Greece 5.49 5.11 3.32 United States 2.17 1.79 0.00 08/47 2.75 99.95 2.75 -0.02 -0.03 0.00 0.00
Baltic Dry Index 1209.00 9.00 Ireland 0.73 0.35 -1.44 Data provided by SIX Financial Information
Sources: NYMEX, ECX/ICE, CBOT, X ICE Liffe, ICE Futures, CME, LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information
unless otherwise stated.
20
The Monday interview
Erik Fyrwald CEO, Syngenta
The agriculture
chief sowing
Swiss expertise
in China
From his headquarters in
Basel, the agri-tech chief
executive discusses bees,
pesticides and takeovers
with Clive Cookson
B
ees brought me to Basel. Erik
Fyrwald, chief executive of
Syngenta, the Swiss agricul-
tural group, wanted to chal-
lenge recent negative cover-
age of neonicotinoid pesticides in the
media, including the Financial Times.
These neonics, manufactured by his
company and others, protect crops from
harmful insects but studies cited by
environmental campaigners show that
they also kill bees and other pollinators.
So Mr Fyrwald invited me to his cor-
porate headquarters, a sober sandstone
building opposite Basel train station, to
argue the case for neonics. We feel very
strongly about bee health, he insists.
Regulatory scrutiny of these chemi-
cals has increased recently. The EU
restricted the use of some neonics in
2013, saying they were harmful to
Europes honeybee population.
However, Mr Fyrwald insists:
Theres plenty of data suggesting that
neonicotinoids are not having any sig-
nificant impact on bee health.
The European Commission is due to
decide this autumn whether to impose a
more extensive ban on neonics.
In his functional executive meeting
room no pictures on the walls our
talk turned to genetically modified
crops and Syngentas takeover by
ChemChina, which is part of a current
wave of global agribusiness mergers.
Mr Fyrwald joined Syngenta in 2016,
after many years in senior management
with US-based chemical companies,
most recently as chief executive of Uni-
var, a global chemicals distributor. The
$44bn Chinese deal had been signed but
not yet received regulatory approval.
Now it is in the final straight, with
ChemChina holding more than 98 per
cent of Syngenta shares and completion
expected before the end of 2017.
Ive been doing business in China
since 1990, says the 58-year-old Ameri-
can of Norwegian ancestry, who started
out as a chemical engineer. I went for
the first time 27 years ago . . . Ive seen
the country develop over a long period.
The state-owned company is keen to
transfer Syngenta technology to China
to improve farm productivity there.
Syngenta will remain an independent
subsidiary, with two ChemChina repre-
sentatives on the eight-member Syn-
genta board. The overall strategy, says
Mr Fyrwald, is for Syngenta to retain
global leadership in crop protection
products such as pesticides, fungicides
and herbicides. The ambition is to turn
around our distant number-three posi-
tion in seeds, which has actually been
declining for some years, he says.
The proposed Bayer-Monsanto and
DuPont-Dow combinations are the lead-
ers in seeds, where the commercial
value lies mainly in improvement
through GM. To compete more effec-
tively, Syngenta is planning to acquire
seeds companies, Mr Fyrwald says:
[The deals] havent been made yet but ing years biotechnology. In China,
were in discussions.
Andrew Liveris, chief executive of Dow
Second Chemical, describes Erik Fyrwald as an
opinion
industry veteran with a vast array of
experiences from private equity to a
public company and now a state-owned
The enterprise.
competitor In these roles, Mr Fyrwald has applied
his high intellectual and emotional
intelligence and proved himself to be
extremely flexible, says Mr Liveris. That
has meant that the Syngenta CEO can
adapt his approach and style to suit the
situation.
The takeover will benefit both Syn-
genta and Chinese agriculture, he
insists. It gives China skin in the game
in both seeds and crop protection
that they havent had before. They did it
for two main reasons. One is to help
assure food quantity, safety and quality
for the Chinese people.
The second reason, Mr Fyrwald says,
is to improve the environment in China,
where farmers apply excessive amounts
of toxic old pesticides and use water
inefficiently. Technology from Syngenta
will give them access to more modern
pesticides and crop protection products,
better seeds, better genetics and in com-
where decades of rampant industriali-
sation has resulted in polluted soils and
waterways, public pressure to clean up
the countryside is growing.
China has been very slow to approve
GM products for many years, he con-
cedes, but there are signs of change.
Recently the Chinese government
approved imports of some GM crop
varieties and Mr Fyrwald expects
approvals for cultivation in China to fol-
low. The prospect for growing geneti-
cally modified organisms (GMOs) in
Syngentas home continent are bleaker.
In Europe we are unlikely to see GM
crops for many years to come, he says,
Monday 28 August 2017
because the opposition from consumers
and environmental groups is so intense.
Were not pushing GMOs. It is not our
priority to spend money and effort to try
to convince European consumers to
encourage their politicians to start
accepting GMOs, Mr Fyrwald adds.
Were better off providing GM technol-
ogy in countries that want it.
In Europe Mr Fyrwald has another
priority: A bigger challenge than GMOs
that European farmers face is if they
Were better off
providing GM
technology in
countries that want it
Erik Fyrwald is
overseeing the
systematically lose access to crop pro-
tection products that are proven safe,
merger of that pass any science-based regulatory
Syngenta with
state-owned
process, but are taken off the market for
political reasons.
Chinese Which brings us back to bees. Agri-
company
ChemChina
culture wouldnt exist without healthy
pollinators, Mr Fyrwald says. I believe
Lucian Hunziker/FT
that a group of scientists, looking objec-
tively at the evidence, will find that
neonicotinoids are an effective use of
modern technology for sustainable agri-
culture, including bee health.
He marshals several arguments. One
is simply that the recent neonic field
studies, taken as a whole, do not show a
harmful impact. And insists that we
should look at neonics as part of an inte-
grated crop protection system. A study
Week ahead commissioned by Syngenta and Bayer
The FTs take found that the EUS moratorium on
on what to look neonics, is costing growers of oil seed
out for in the
coming week rape (who are most dependent on these
now runs online pesticides) 900m a year through
only. For reduced crop quantity and quality.
guidance on This is not solely about profit, he says.
what is If you take away the best crop protec-
happening tion technologies, the newer technolo-
in markets, gies, farmers wont be competitive and
economics,
companies and theyll use a larger volume of pesticide,
politics, go to: he says. That is a problem for me living
ft.com/weekahead
in Europe now, as a citizen, as a scientist
and as a business person.