FRIDAY 31 JULY 2015
00
Red tape sprawl
Gillian Tett: America’s
entrepreneurial halo slips — PAGE 9
Big companies
raise red flag
on profits hit
by China woes
3 Alarm at slowdown in vital market
3 Weaker growth set to damage sales
MICHAEL STOTHARD — PARIS
CHRIS BRYANT — FRANKFURT
Some of the world’s largest companies
have sounded the alarm over the slow-
down in the Chinese economy, warning
that weaker growth would hit profits in
the second half of the year.
Car companies such as PSA Peugeot
Citroën, Audi and Ford have slashed
growth forecasts while industrial goods
groups such as Caterpillar and Siemens
have all spoken out on the negative
impact of China.
The warnings are a sign that China’s
weaker growth and its stock market
rout this month are creating a headache
for global corporates that have long
relied heavily on the world’s second-
largest economy to drive revenues.
Audi and France’s Renault both cited
China as they cut their global sales tar-
gets yesterday, with Christian Klingler,
sales chief at Audi parent Volkswagen,
predicting “a bumpy road” in the coun-
try this year.
Elsewhere, Peugeot slashed its growth
forecast for China from 7 per cent to 3
per cent, while earlier this week Ford
predicted the first full-year sales fall for
the Chinese car market since 1990.
“In Asia, the China market has clearly
slowed,” said Akhil Johri, United Tech-
nologies’ chief financial officer, at the US
industrial group’s earnings call last
week.
“Companies thought that China was
the land of opportunity, but it’s not liv-
ing up to that promise,” said Ludovic
Subran, chief economist at Euler
Hermes. “They realise the business
Former Top Gear hosts
hit the road with Amazon
Amazon has signed up the departing
presenters of BBC’s Top Gear show as
internet groups continue to encroach
on the terrain of traditional
broadcasters. The world’s largest
online retailer said it had signed
Jeremy Clarkson, Richard Hammond
and James May to present a television
series that will premiere in 2016.
People familiar with the situation told
the Financial Times that the deal was
worth $250m for 36 episodes.
Report i PAGE 13
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environment is changing for the worse.”
China’s slowdown, which follows
years of extraordinary growth, has been
particularly startling in recent months,
with figures last week showing that the
country’s factory activity in July con-
tracted the most in 15 months.
The poor figures coincide with a time
of turbulence on the Chinese stock mar-
ket. The Shanghai Composite shed 8.5
per cent on Monday, its steepest drop
since 2007. The fall came despite a
string of interventions by Beijing to
stem the slide, including a ban on short
selling and an interest-rate cut.
In the consumer goods sector, brewer
Anheuser-Busch InBev said yesterday
that volumes fell 6.5 per cent in China as
the result of “poor weather across the
country and economic headwinds”.
Among industrial goods companies,
Schneider Electric, one of the world’s
largest electrical equipment makers,
reported a 12 per cent fall in first-half
profit and cut guidance because of
“weak construction and industrial mar-
kets” in China. Jean-Pascal Tricoire,
chief executive, said that there was
“persistent weakness in China”.
Siemens, the German industrial
group, said yesterday that sales in China
fell 8 per cent in the quarter and Chinese
new orders slid 2 per cent when
adjusted for currency swings.
“Does China stabilise? That’s proba-
bly the billion dollar question,” said Joe
Kaeser, Siemens chief executive.
Additional reporting by Nicole Bullock in
New York and Catherine Bennett in Paris
Drag on blue-chip groups page 22
Celgene pays hefty $7bn premium for
its early reluctance to swallow Receptos
DAVID CROW — NEW YORK
It turned out to be a mistake that cost
almost $7bn. When Celgene’s chief
executive, Bob Hugin, announced his
company was buying Receptos, a Cali-
fornian biotech, for $7.2bn earlier this
month, his jubilation must have been
tempered by the knowledge that he
could have bought it for a fraction of
the price less than two years ago.
Celgene came within touching distance
of buying Receptos in October 2013,
when the company’s market capitalisa-
tion was just $550m, according to a
securities filing.
The pair got as far as exchanging
drafts of a merger agreement, but Cel-
gene pulled out at the eleventh hour. On
that day, the Receptos share price was
$29.97; Celgene ended up paying $232.
The cost of Celgene’s procrastination
STOCK MARKETS
Jul 30 prev %chg
S&P 500 2108.63 2108.57
Nasdaq Composite 5128.78 5111.73
Dow Jones Ind 17745.98 17751.39
FTSEurofirst 300 1571.22 1561.48
Euro Stoxx 50 3583.79 3575.53
FTSE 100 6668.87 6631.00
FTSE All-Share 3635.28 3618.45
CAC 40 5046.42 5017.44
Xetra Dax 11257.15 11211.85
Nikkei 20522.83 20302.91
Hang Seng 24497.98 24619.45
FTSE All World $ 280.47 280.79
WORLD BUSINESS NEWSPAPER
Going dark
Encryption: the growing challenge
for law enforcement — BIG READ, PAGE 6
IMF undecided Doubts over role of
fund in eurozone’s next Greek rescue
Alexis Tsipras won a battle early this morning with mutinous Syriza leftwingers — Thanassis Stavrakis/AP
PETER SPIEGEL — BRUSSELS
The International Monetary
Fund’s board has been told
Athens’ high debt levels and
poor record of implementing
reforms disqualify Greece
from a third IMF bailout of the
country, raising new questions
over whether it will join the
EU’s latest financial rescue.
This means that while IMF staff
will participate in bailout talks
under way in Athens, the fund
will not decide whether to agree
a new programme for months
— potentially into next year.
The delay threatens signifi-
cant repercussions, particu-
larly in Germany, where offi-
is one of the starkest signs yet of the
massive surge in valuations for young
biotech companies, a number of which
have been sold for ever richer premi-
ums.
The Celgene-Receptos deal comes
amid a mergers and acquisitions boom
in the broader healthcare sector, where
$390bn of transactions have been
announced so far this year, according to
Thomson Reuters.
In the 21 months between Celgene
walking away and coming back to ink a
deal, Receptos’s main drug, Ozanimod,
scored several big successes in clinical
trials for ulcerative colitis, and relapsing
multiple sclerosis. The apparent effi-
cacy of its drug, which is still being
tested in large, late-stage trials, pushed
its share price steadily higher.
The securities filing also details how
Receptos and its financial advisers,
World Markets
CURRENCIES
Jul 30 prev
0.00 $ per € 1.093 1.103 € per $
0.33 $ per £ 1.561 1.565 £ per $
-0.03 £ per € 0.700 0.705 € per £
0.62 ¥ per $ 124.335 123.820 ¥ per €
0.23 ¥ per £ 194.107 193.796 £ index
0.57 € index 85.630 85.843 $ index
0.47 SFr per € 1.059 1.062 SFr per £
0.58 COMMODITIES
0.40 Jul 30
1.08 Oil WTI $ 48.42
-0.49 Oil Brent $ 53.30
-0.11 Gold $ 1087.50
cials have long said it would be
impossible to win Bundestag
approval for the new €86bn
bailout without the IMF.
The assessment adds another
source of complexity just as
Athens and its bailout monitors
begin talks on concluding a deal
before an August 20 deadline.
As the creditors harbour mis-
givings, Alexis Tsipras, Greece’s
prime minister, won a battle
with a mutinous far-left faction
in his governing Syriza party
unhappy at conditions attac-
hed to the bailout. His proposal
to hold an extraordinary party
congress to examine the bailout
once it has been completed was
approved early this morning
Centerview Partners, consistently
pushed Celgene to pay more for the
company during months of cat-and-
mouse discussions.
In February of this year, Celgene
returned to the negotiating table, offer-
ing to pay $193 per share. At that point
six other potential acquirers were con-
tacted by Centerview, Receptos’s finan-
cial advisers.
By April, several media outlets
reported rumours that Receptos was up
for sale, pushing its shares as high as
$203. Receptos executives pressed Cel-
gene for more cash. In May, Celgene
again walked away.
The deal was revived last month when
Mr Hugin phoned his counterpart at
Receptos, Faheem Hasnain, leading to
Celgene making a $230 per share offer,
which it sweetened to $232 a fortnight
before signing the deal.
INTEREST RATES
Jul 30 prev price
0.915 0.907 US Gov 10 yr 98.75
0.641 0.639 UK Gov 10 yr 99.21
1.429 1.419 Ger Gov 10 yr 103.38
135.830 136.599 Jpn Gov 10 yr 99.89
93.915 93.505 US Gov 30 yr 100.90
104.027 104.178 Ger Gov 2 yr 101.39
1.514 1.507 price
Fed Funds Eff 0.12
prev %chg US 3m Bills 0.05
48.79 -0.76 Euro Libor 3m -0.02
53.38 -0.15 UK 3m 0.58
1090.25 -0.25 Prices are latest for edition Data provided by Morningstar
USA $2.50 Canada C$3.
Walter the Dentist
New face of the great white
hunter— ROBERT SHRIMSLEY, PAGE 8
Briefing
i Ex-US banking regulator quits Santander
Former US banking regulator Sheila Bair has
resigned from the board of Banco Santander after
18 months, as the Spanish bank yesterday reported
a 17.6 per cent rise in second-quarter net profit to
€1.71bn.— PAGE 13; NET PROFIT UP, PAGE 15
i Household spending boosts US GDP
US gross domestic product rose by an annualised
2.3 per cent in the three months to June, driven by
firmer household spending, coupled with an upturn
in exports, and higher public outlays.— PAGE 3
i Debris provides hope of MH370 lead
Malaysia’s prime minister has
confirmed that a piece of aircraft
debris that washed up on a beach on
the Indian Ocean island of La
Réunion was almost certainly from a
Boeing 777, the aircraft type of flight
MH370.— PAGE 4
i Uber to drive investment in India
Uber, the ride-hailing app group, is aiming for its
service in India to hit 1m daily fares by March 2016,
as it targets $1bn in investment in the country and a
challenge to domestic ride-sharing app Ola.— PAGE 14
i Unease lingers over Irish banks inquiry
Doubts are being raised about whether a long
inquiry into Ireland’s banking collapse can provide
a cathartic account of the crisis, which remains an
open wound.— PAGE 2
i Pressure mounts on Noble Group
Shares in Asian commodity dealer Noble Group fell
12 per cent yesterday, with the Singapore Exchange
issuing a warning to investors, with mounting
questions over its accounts.— PAGE 20
i IHG checks in for talks with Starwood
InterContinental Hotels has held early-stage talks
without resort to a roll-call vote. with Starwood Hotels & Resorts over a union to
The IMF decided last week its create the world’s largest hotel group.— PAGE 13
existing bailout programme,
which was to run until March, Datawatch
needed to be scrapped because
it could no longer achieve its
Forecast GDP growth
stated goal. The IMF then
in eastern Europe
forced Athens to request a new Prospects for
Consensus of analysts’ forecasts
IMF programme, which economic growth
for GDP growth in 2015 (%) in the big eastern
requires board approval, neces- Russia Hungary
European
sitating Wednesday’s meeting. Ukraine Poland
Czech Rep. Romania economies that
According to a confidential 5
are EU members
summary of the meeting, IMF 0 have not been
negotiators will take part in dis- affected by the
cussions on the eurozone’s new -5 political problems
bailout but the fund will decide in Russia and the
-10
whether to take part only after Ukraine, according
Greece has “agreed on a com- Jul 2014 Date of forecast 15 Jul to Consensus
prehensive set of reforms”. Source: Consensus Economics Economics
Tsipras wins battle page 2
yield chg
2.27 -0.03
2.09 -0.01
0.66 -0.06
0.42 0.01
2.96 -0.04
-0.26 0.00
prev chg
0.11 0.01
0.05 0.00
-0.01 0.00
0.58 0.00
2 ★★ FINANCIAL TIMES Friday 31 July 2015

INTERNATIONAL

Greece EU oversight

Tsipras wins battle with Syriza’s far left Schäuble in

September congress to
examine bailout as talks
reveal party divisions
KERIN HOPE — ATHENS
Alexis Tsipras won a battle early this
morning with a mutinous far-left fac-
tion in his governing Syriza party after a
day of tense discussions that laid bare
deepening divisions within the party
over a new €86bn bailout being negoti-
ated with Greece’s creditors.
The prime minister’s proposal to hold
an extraordinary party congress in
September to examine the bailout once
it has been completed was approved by
Syriza’s 200-strong central committee
last night without resort to a roll-call
vote. Mr Tsipras’s earlier suggestion of a
party referendum on the bailout to be
held immediately was dropped after
objections by Panagiotis Lafazanis, the
premier’s sharpest critic and leader of
the rebellious Left Platform, the party’s
internal opposition.
“How many referenda are we going to
hold? We’ve already done one and we
won with 62 per cent of the vote,” said
Mr Lafazanis, a former communist who
was sacked as energy minister in a
cabinet reshuffle this month.
He was referring to the No vote in a
national referendum on July 5 on a bail-
out plan the government had already
rejected, a result that boosted Mr
Tsipras’s standing at home even though
he accepted a new bailout on harsher
terms a week later.
The premier appeared to have won a
breathing space but last night’s highly
France. Tunnel chaos
charged debate signalled that Left Plat-
form, which supports an end to auster-
ity and a Grexit from the euro, would
continue to oppose a fresh bailout.
Earlier yesterday, Mr Tsipras had
addressed the central committee pro-
posing the yes-or-no vote on the bailout
for Sunday. “Anyone who wants a differ-
ent government or a different premier
should say so,” said Mr Tsipras, making
clear he viewed a vote to be a judgment
on his tenure as prime minister. “Those
who believe this is the worst memoran-
dum [bailout] of all should say so now.”
Greek radio and television stations
interrupted their regular programmes
to broadcast Mr Tsipras’s speech live
from the party gathering at an Athens
cinema — a sign of how the meeting was
seen as critical to the country’s stability.
Since agreeing to the bailout this
month after a bruising meeting with
fellow EU leaders, Mr Tsipras has had to
contend with rising discontent from
Syriza’s left flank. Left Platform has
staunchly opposed the reforms tied to
the bailout, fuelling speculation it might
break from the party and leave Mr
Tsipras without a governing majority.
Mr Lafazanis has openly argued that
Greece should have brought back the
drachma. Earlier this week, he told
supporters that “an exit from the euro
. . . in spite of all the dark propaganda,
would in no way be a disaster”.
The threat from Mr Lafazanis is com-
plicating Mr Tsipras’s already difficult
task of finalising a new rescue pro-
gramme that is deeply unpopular in
Greece. Making matters more challeng-
ing, he is also facing demands from
creditors for even more economic
reforms before they will release the first
tranche of aid payments.
If Athens and its bailout creditors can-
not reach a deal by August 20, when a
€3.2bn bond held by the European Cen-
tral Bank becomes due, the EU will have
to provide Greece with a second bridge
loan. But that would come with its own
conditions, and might force Mr Tsipras
to propose another round of reforms to
Greece’s parliament within weeks.
“Leaving the euro without any possi-
bility of economic support, and without
foreign exchange reserves, would mean
a huge devaluation, harsh austerity and
further recourse to the International
Monetary Fund for support,” he said.
“Anyone who doesn’t accept this is
wilfully blind or is hiding the truth.”
Additional reporting by Peter Spiegel in
Brussels
push to limit
powers of
Brussels
JEEVAN VASAGAR — BERLIN
PETER SPIEGEL — BRUSSELS
ANNE-SYLVAINE CHASSANY — PARIS
Wolfgang Schäuble, Germany’s finance
minister, is proposing to strip the Euro-
pean Commission of some of its core
oversight powers in an effort to avoid
politicising EU decision-making at a
time when the executive body has
touted its new partisan role in Europe.
The commission has quasi-judicial
authority over some of the most sensi-
tive EU-wide decision-making, particu-
larly in the area of merger approvals and
antitrust monitoring — powers that
could be moved to independent bodies
under Mr Schäuble’s plan.
Berlin has long called for the euro-
zone’s budget rules to be triggered auto-
matically when a country breaches EU
debt and deficit ceilings, and has com-

Calais plained bitterly that France has been

given repeated waivers by the commis-
sion, despite violating those limits for

migrants
years — waivers some have viewed as
politically motivated.
Mr Schäuble’s proposals, reported by
the newspaper Frankfurter Allgemeine

hold on to Zeitung and partially confirmed by the

German finance ministry, are part of a
growing debate over the eurozone’s

dream of
future. Eurozone officials had been
planning to accelerate moves to over-
haul the zone if Greece was forced out of
the currency union, as a way to convince

England ‘A clear signal [should

Fears rise that people will take
ever greater risks despite
extra security measures
ADAM THOMSON — CALAIS
Night has fallen over Calais and
Muhammed’s long wait is finally over:
he warms his hands over a campfire one
last time, wraps a blanket tight around
his head for warmth and walks towards
a barbed wire fence separating him
from railway tracks leading to England.
“In fifth grade, we learnt about
Africa,” says the 31-year-old. “Then we
learnt about the world, about England
and about democracy. England is a good
place.”
Migrants such as Muhammad have
been passing through the northern
French port for years, viewing it as the
penultimate stop of a journey that
typically spans thousands of miles,
often in perilous conditions.
But this week Britain has resembled a
fortress desperately trying to keep out
thousands of migrants from Africa, the
Middle East and beyond striving to
overwhelm the defences of the Channel
tunnel by sheer force of numbers. On
Monday night, 2,000 people stormed
the tunnel site seeking to jump on to
trains bound for the UK. Another 1,500
tried again the night after; one man was
killed by a lorry as he crossed a road.
Britain and France have pledged addi-
tional security measures and police to
protect the tunnel. But Christian
Salomé of L’Auberge des Migrants,
which provides basic aid to the migrants
in Calais, says it will only push them to
take even greater risks. “This is not
security,” he says. “It just makes it more
dangerous for them to cross.”
French police In the meantime, the cost to business
face migrants at is rising: the disruption in Calais is
the Eurotunnel estimated at £250m per day in lost trade
site in Coquelles, for UK businesses cut off from a vital
near Calais, on transport artery.
Wednesday Like Muhammed, who came from
night. One man Ethiopia, most of the migrants in Calais
was killed by a are on a one-way ticket, fleeing from
truck this week war and violence back home. Kamel, a
as he crossed a robust 28-year-old wearing a baseball
road — Philippe Huguen cap and a “Harvard”-stamped T-shirt,
AFP/Getty Images
left his native Syria six weeks ago after
his mother was killed in fighting and his
home was destroyed.
He says he spent a total of €8,500 to
get to Calais, paying different people on
a journey through Turkey and Greece
that included a hazardous two-day trek
through the Serbian mountains before
reaching Austria and Germany.
But most migrants from Africa travel
through Sudan and on to Libya before
paying more than $1,000 to be
crammed into a small boat that
transports dozens of people at a time to
Italian shores.
Struggling to feed a small fire in a
wooded area near the tunnel entrance,
Kamel says that his 15 failed attempts so
far to reach the UK have done nothing to
deter him. “I’ve come too far and spent
too much to go back now,” he says. “Any-
way, there is nothing to go back to.”
His obsession with England is typical
of the vast majority of migrants in
Calais. They say that seeking asylum is
relatively easy and quick in Britain
compared with France or other EU
countries.
They also say that it is easier to find
informal work — in part, because the
economy is growing but also because
there is no ID card requirement.
Besides, most speak at least some
English, which makes the UK their
natural destination.
Not everyone leaves, though. For the
past three months, Mohammad Ali, a
65-year-old Afghan former school
teacher, has holed up in the notorious
“jungle”, the 18 hectares of Calais scrub
land where about 2,000 migrants now
sleep in makeshift shelters.
Fleeing from fighting in Afghanistan,
where he left his wife and eight children,
Mr Ali had his gaze fixed on Dover. But
he now thinks it may be too dangerous
and is considering applying for asylum
in France instead.
“I don’t like the risks you have to
take to get across,” he says. “I am not
going to commit suicide for this dream.”
There are increasing signs of perma-
nence in Calais’s jungle, which is carved
into national groups — Sudanese, Ethio-
pians, Eritreans and Afghans — like a
miniature map of global human con-
flict. On one side, Eritreans have built a
church — complete with a cross-topped
spire — from wood and polythene.
Afghans such as Mr Ali pray five times
a day in a mosque covered in green plas-
tic sheeting. Inside its dark interior, a
small group of migrants lie asleep on
carpets while another stacks copies of
the Koran in the corner.
For the great majority, however, stay-
ing in Calais seems about as desirable as
returning home. Mahammed, a 19-
year-old from Sudan, says that it has
taken him a year to get this far. His 10
failed attempts at crossing have ended
in beatings by the police, being pepper
sprayed and dumped miles from Calais,
he says.
‘English But none of that has quelled his drive
is my to get to England, where he says he
wants to finish school — a promise he
favourite made to his subsistence-farmer parents
language. back home. “English is my favourite
language,” says Mahammad. “I am
I am never never giving up.”
giving up’ Europe’s shame page 9
be sent] about the
stability and integrity
of the eurozone’
financial markets that the rest of the
bloc was pulling closer together and
would not lose another member.
But the fraught debate over Greece at
the July summit that led to a bailout
agreement has convinced many govern-
ments they must still act despite the
Greek deal, especially after what many
countries feel was Berlin’s high-handed
role in the talks.
Paris has pressed for a eurozone over-
haul and, in a recent interview in the
Financial Times, Pier Carlo Padoan, the
Italian finance minister, called for a
rapid move to a full political union.
Differences are emerging over the
way forward. Paris and Rome are
emphasising a pooling of resources,
either in the form of a eurozone budget
or a common EU unemployment
scheme, while Berlin is focusing on giv-
ing the zone’s rules more bite and less
interference from political forces.
The German finance ministry said Mr
Schäuble first raised his ideas at a meet-
ing of his EU counterparts in Brussels on
July 14, where he emphasised the need
to send a “clear signal about the stability
and integrity of the eurozone”, against
the backdrop of the Greek crisis.
The German proposal is not aimed at
weakening the commission but at safe-
guarding regulatory independence at a
time when the EU body is becoming
increasingly political, say people famil-
iar with Mr Schäuble’s thinking.
Mina Andreeva, a commission
spokeswoman, declined to comment on
the plan. She defended the more politi-
cal style of the executive body under
Jean-Claude Juncker, its president, say-
ing: “It does not mean a political com-
mission is more partisan.”

We Want Your Business Public accountability

Inquiry into banking crisis struggles to heal Ireland’s wounds

VINCENT BOLAND — DUBLIN how and why Irish banks crashed Recent appearances by leading politi- says politics may have trumped any
between 2008 and 2010. That disaster cians — especially Enda Kenny, the taoi- more considered conclusions, especially
The Galway races, Ireland’s leading
FT BUSINESS Tuesday, Friday & Saturday Business for Sale, Business Opportunities, Business cost Irish taxpayers €64bn in immedi- seach (prime minister) — have led to with a general election barely six
Services, Business Wanted, Franchises horseracing festival and a highlight of
ate recapitalisations of the banking sec- accusations that the inquiry has months away.
the social calendar, got under way this
Classified Business Advertising: tor. It forced Ireland to seek a €67bn descended into political point-scoring. “It has become a vulgar political
week. But the wealthy elite who made
UK: +44 20 7873 4000 | US: +1 212 641 6500 | ASIA: +852 2905 5554 bailout in 2010, which came with its own As the Irish Independent put it, the scrap, and we have learnt very little,” Mr
the event a prize networking opportu-
costs in the form of years of bruising inquiry “is at risk of becoming a source Ross says.
nity during the Celtic Tiger boom were
austerity. of public ridicule”. Yet there is another reading of the
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Friday 31 July 2015
GDP figures
US economy speeds up in second quarter
Steady recovery as rise of
2.3% comes after stronger
start to year than expected
SAM FLEMING — WASHINGTON
The US economy accelerated in the sec-
ond quarter after a stronger start to the
year than previously estimated, accord-
ing to official figures that point to a
steady if unspectacular recovery.
Gross domestic product rose by an
annualised 2.3 per cent in the quarter to
June, the Bureau of Economic Analysis
said yesterday, marginally shy of Wall
Street forecasts of 2.5 per cent growth.
A previously estimated 0.2 per cent
fall in first-quarter GDP was replaced by
an estimate of 0.6 per cent growth, in
revisions that suggest a smaller impact
from bad weatherandaport strike.
China’s cheerleading fails to convince
As Beijing’s rhetoric grows
more strident, investors are
less inclined to believe it
TOM MITCHELL — BEIJING
China’s stock market regulator began its
most recent press briefing with a telling
instruction for the mostly local journal-
ists in attendance. “We have a require-
ment concerning speculative reports,”
said the China Securities Regulatory
Commission. “They must first be con-
firmed by the CSRC in order to prevent
the spread of false information and mar-
ket disturbance.”
The warning was a reminder that as a
“national team” comprised of largely
state-owned entities struggles to shore
up China’s stock market, the govern-
ment is orchestrating an equally impor-
tant cheerleading campaign involving a
broad array of state media outlets.
Illustrating just how delicate investor
sentiment remains despite the govern-
ment’s all-out propaganda war, the
Shanghai Composite Index experienced
the second-largest points fall in its 25-
year history on the first trading day
after the CSRC’s remarks. The 8.5 per
cent fall on July 27 left the SCI just 200
points above 3,500 — the level at which
the government’s rescue effort began in
earnest on July 8.
A move below the intervention point
would be embarrassing for the national
team led by China Securities Finance,
the CSRC vehicle fronting a rescue effort
estimated to be worth at least Rmb2.2tn
($350bn). One of the team’s key players,
the Securities Association of China rep-
resenting more than 100 state-control-
led brokers, has pledged not to sell
shares until the SCI has recovered to at
least 4,500 points.
“Market confidence is extremely frag-
ile,” says Chen Long, China economist at
Gavekal Dragonomics in Beijing. “The
government will continue buying but in
the long run they cannot really change
the trajectory.”
Yesterday morning, the SCI fell below
3,760 before closing at 3,787 at the mid-
day break.
Reflecting government concern that
the SCI is more likely to fall through the
3,500-point floor than soar past the
securities association’s 4,500 target, this
week the CSRC has adopted language
reminiscent of Maoist campaigns
against “capitalist roaders” and other
“bad elements”.
Central bank meeting
Russian business on tenterhooks over interest rate decision
COURTNEY WEAVER — MOSCOW
Izvestiya, the Kremlin-friendly Rus-
sian daily, is known primarily for its
coverage of politics and the military.
Yet this week, it splashed with a front-
page story it knew would really capti-
vate its 230,000 Russian readers: the
future of the benchmark interest rate.
Once a topic of interest primarily for
Moscow bankers and economists, the
future of the rate has become a national
sport after a year of wild currency fluc-
tuations, an emergency rate rise and
worsening forecasts for growth.
In recent months, the central bank
and Russian business have been
engaged in a fairly public tug of war over
monetary policy. The central bank has
made clear that lowering inflation and a
relatively stable currency are its main
priorities, while the latter fears higher
rates are stymieing economic growth.
With the rouble in the midst of another
plummeting spiral — it has lost 15 per
However, revisions farther back sug-
gested the US has had an even more
sluggish recovery sincethecrash.
The US Federal Reserve has signalled
that it remains on track to raise interest
rates from near-zero levels since 2008,
in part because of “moderately” expand-
ing economic activity.
The statement left the door open to a
rise at its next meeting in September
amid predictions of continued improve-
ment in the jobs market and rising GDP.
The BEA yesterday said the accelera-
tion in the second quarter of 2015 was
driven by firmer household spending,
coupled with an upturn in exports, and
higher public outlays. Personal spend-
ing increased 2.9 per cent in the second
quarter, a sharp acceleration from the
first quarter, when it gained 1.8 per cent.
Consumers’ willingness to spend
more will be a key factor in the Fed’s
Stock market upheaval. Propaganda war
Regulator inquiry
Aerospace group probed
over share transactions
China’s securities regulator is
investigating allegedly illegal share
sales at the country’s biggest state-
owned aerospace company, which is led
by a man who blames China’s stock
market woes on “malicious” foreigners.
Lin Zuoming, chairman of Aviation
Industry Corporation of China (Avic),
has repeatedly said the collapse in
Chinese share prices was part of a
“sneak attack” carried out by foreigners
to undermine the Communist party.
After the government banned share
cent of its value against the dollar since
May — attention is turning to a central
bank policy meeting today.
After raising its benchmark rate from
10.5 per cent to 17 per cent in a surprise
overnight rise last December, the cen-
tral bank has lowered the rate at each of
its monthly policy meetings since Janu-
ary to the current 11.5 per cent.
In its front page story this week, Izves-
tia reported that the central bank’s
head, Elvira Nabiullina, had warned
Russian business leaders at a closed-
door session last week that the central
bank would not lower rates this week.
The central bank does not publicly
comment on monetary policy in the
days leading up to its monthly policy
announcement and Izvestiya’s scoops
have sometimes been wrong. A majority
of analysts surveyed by Bloomberg fore-
cast the central bank would go ahead
and lower rates by 0.5 percentage points
as previously predicted. But fears rates
could remain on hold have angered
★ FINANCIAL TIMES
INTERNATIONAL
willingness to follow through with its
hints of a rate rise. Policymakers have
been counting on the slump in oil prices
to convince households to open their
wallets, yet thus far figures have
reflected caution.
Janet Yellen, the Fed chair, this month
noted that households are starting to
splash out more on big-ticket items such
as cars. Confirming that evidence, the
savings rate fell in the second quarter to
4.8 per cent from 5.2 per cent in the first.
“The improving jobs market, along-
side the boon to households from low
inflation and falling oil prices, has been
key to the economy’s ability to sustain
strong growth,” said Chris Williamson,
an economist at Markit. “The new data,
and the first quarter revisions in partic-
ular, remove a worrying sense of doubt
about the health of the economy.”
Real exports grew by 5.3 per cent, the
A dancer for the Hong Kong Economic and
Trade Office, which rang the opening bell,
performs in the New York stock Exchange
this week — Spencer Platt/Getty Images
sales by large shareholders to arrest a
market slide earlier this month, Mr Lin
promised his company would actively
buy shares to prop up the market.
But in statements to the Shanghai
Stock Exchange, Avic Heibao, a listed
manufacturing subsidiary of Avic, has
said it is being investigated by the
securities regulator along with two
shareholding companies on suspicion
of illegal share transactions.
The disclosure said Avic Capital, the
trading arm of Avic Heibao, had fired its
general manager, Yang Shengjun, after
it received word of the investigation.
Earlier this month, the Shanghai
Stock Exchange also issued a
regulatory notice saying share sales by
business, which sees it as a sign the bank
is prioritising the rouble’s stability and
lower inflation over economic recovery.
High interest rates are hurting busi-
ness, said Siegfried Wolf, chairman of
Russian Machines, a subsidiary of Oleg
Deripaska’s Basic Element holding
group. “In Russia we have three to four
times higher interest rates than you
17% 11.5%
Benchmark rate The current rate
in December after following a series
a sharp increase of monthly
from 10.5% reductions
have in the countries you’re competing
with. The banks themselves have to bor-
row money from the central bank at
double digit [rates]. This is a very hard
exercise to be successful.”
Others argue the rouble’s recent vola-
tility has been hard on Russian business
owners. “All our materials are in euros
BEA said, outpacing growth in imports
of 3.5 per cent and ensuring trade made a
positive contribution despite the strong
dollar. Business spending growth
remained weak, however, with invest-
ment excluding housing falling 0.6 per
cent, the weakest since 2012. Higher first
quarterinvestment drovetherevisionin
growth up, along with inventory spend-
ingandresidentialinvestment.
The BEA figures gave a slightly firmer
snapshot of inflation, with the price
index for personal spending rising at a
2.2 per cent pace in the second quarter.
Core prices were up 1.8 per cent.
While the US performed better than
estimated in the first part of the year,
the BEA also issued revised figures that
showed growth was lower than esti-
mated between 2012 and 2014.
Measured from the fourth quarter of
2011 to the same period of 2014, GDP
Avic’s major shareholders had
exceeded 5 per cent but that the
company had failed to make the
required disclosures.
Before the investigation was
revealed, Mr Lin cast his company’s
actions as part of a heroic struggle
against foreign aggression.
Owing to Beijing’s strict quota
system, combined foreign holdings
comprise barely 3 per cent of the
Chinese equity market, making it highly
unlikely global investors would be able
to crash the market. Mr Lin could not be
reached for comment.
Jamil Anderlini, Beijing. Additional
reporting by Christian Shepherd in
Beijing
and dollars,” said Andrei Artemov, a
fashion designer. “We are always think-
ing now about how to cut costs.”
On Wednesday, the central bank
announced that it had halted its daily
foreign currency purchases after the
rouble lost more than 5 per cent of its
value against the dollar in a week, a
reflection of the weaker oil price. The
purchases were meant to shore up Rus-
sia’s international reserves.
Ivan Tchakarov, chief economist at
Citi in Moscow, said he believed the cen-
tral bank was more likely to cut rates
now that it had stopped its daily foreign
currency purchases this week. Other-
wise it would suggest the central bank is
overly concerned about inflation and
rouble volatility, he said.
Izvestiya said businessmen at the cen-
tral bank’s meeting had pleaded with Ms
Nabiullina to lower interest rates fur-
ther. It said the central banker offered
only the hope that rates would be cut by
a symbolic 0.5 percentage points.
rose at an average annual rate of 2.1 per
cent, 0.3 percentage points slower than
previous estimates, the agency said. The
personal consumption expenditures
price index average rose slightly faster
during the period, rising 1.4 per cent
instead of 1.3 per cent.
The two biggest areas contributing to
the overall revision down were con-
sumer spending, where average annual
growth was revised down two-tenths of a
per cent to 2.3 per cent over the period,
and government spending, which fell 0.9
percentandisnowdown1.6percent.
The first 23 quarters of the recovery to
thefirstquarterof2015nowshow2.1per
cent growth instead of 2.2 per cent, said
Jim O’Sullivan of High Frequency Eco-
nomics. “The pace of growth remains
extremely weak by past recovery stand-
ards, but it appears to be sufficient to
keepunemploymentcomingdown.”
In terse late-night statements, posted
in question and answer format, the
CSRC has pledged to pursue all “rele-
vant clues” as it pursues stock “dump-
ing” in contravention of its July 8 decree
banning listed companies’ large share-
holders and directors from selling their
shares.
Investors have also been urged to
report any such “malicious” activity to
official hotlines, in a throwback to the
Cultural Revolution and other political
campaigns in which the Chinese Com-
munist party encouraged people to
monitor and inform on their neigh-
bours. “Where [malicious dumping] is
discovered, the punishment will be
severe,” the CSRC said after the 8.5 per
cent fall on July 27.
“The political system in place in China
is still essentially Leninist in its struc-
ture, organisation, thinking and
instincts,” says Steve Tsang, head of
Nottingham university’s School of Con-
temporary Chinese Studies.
“The stock market is required to serve
the people and the party and the party
alone represents the people. So if the
market goes the wrong way or ‘misbe-
haves’, it is unpatriotic and should be
corrected. Anyone who drives or helps
the market ‘misbehave’ is a traitor.”
But as the rhetoric coming from the
CSRC and official media outlets grows
more strident, investors and analysts
are less inclined to believe it. “Every-
one’s smart enough to know that what
the People’s Daily is saying, and what
Xinhua is saying, is just their job,” says
Mr Chen at Gavekal Dragonomics.
“That has nothing to do with your own
decisions about portfolio management.”
“I look at the government’s actions
rather than words because the words
have no meaning,” agrees Fraser Howie,
a China securities expert who marvels at
the national team’s accumulation of
assets over the past week, including
shares in one of the country’s largest
dairy companies. “They now own 5 per
cent of a dairy. What the hell does the
government need to buy 5 per cent of a
dairy for?”
The problem for the Chinese govern-
ment is that the longer the SCI flirts with
3,500 points rather than 4,500, the
more inclined investors will be to take
advantage of the exit opportunity it is
providing. As one Beijing-based invest-
ment adviser recommends: “If they are
stabilising the market by stupidly going
long, then you should sell.”
Additional reporting by Wan Li and
April Ma
Draft financial code
India to ensure central bank
control of monetary policy
VICTOR MALLET — NEW DELHI
AND JAMES CRABTREE — MUMBAI
The Indian government plans within
months to entrench central bank direc-
tion of monetary policy, to bury a con-
troversial proposal to grant the govern-
ment of the day control over interest
rates, according to officials.
“The paramount principle is that we
have to have an independent central
bank that is top-notch in its capability
and its abilities to take the right deci-
sions for India with a long-term view,”
said one government official. “Whatever
we do will be with the full agreement of
theRBI[ReserveBankofIndia].”
Last week, India’s financial sector leg-
islative reforms commission released its
latest version of the draft Indian Finan-
cial Code, which included a plan for a
monetary policy committee similar to
3
Ai Weiwei
UK under fire
for visa curb
on dissident
Chinese artist
JAMIL ANDERLINI — BEIJING
KIRAN STACEY, GEORGE PARKER AND
JAMES PICKFORD — LONDON
Members of parliament, campaigners
and leading arts figures have attacked a
decision by the UK government to deny
a six-month business visa to Ai Weiwei,
the Chinese dissident artist, preventing
him from visiting London at the same
timeasPresidentXiJinping.
Salman Rushdie, the novelist, led criti-
cism of the government yesterday after
Mr Ai said the British embassy had
restricted his entry visa to 20 days for
failing to declare a criminal conviction.
The decision means that the artist,
who was abducted, detained and inter-
rogated by Chinese security agents but
never charged, will miss part of his exhi-
bition at the Royal Academy in London
from September to December.
Mr Rushdie said: “I’m disappointed to
hear about Ai Weiwei’s UK visa restric-
tion and I hope this decision will swiftly
be reversed.” The Royal Academy said it
was “concerned”, while Labour politi-
cians and campaign groups urged the
Home Office to change its mind.
Mr Ai published a copy of the rejec-
tion letter from the British embassy in
Beijing yesterday. Instead, officials
granted him a visa to the end of Septem-
ber, weeks before an official visit by Xi
Jinping, the Chinese president.
‘The government has said
repeatedly that freedom of
speech and expression are
key British values’
The letter said he had been denied the
six-month entry because “you have pre-
viously received a criminal conviction in
China,andyouhavenotdeclaredthis.”
The artist is known for his irreverent
political statements and ingenious pub-
lic protests, and came to prominence in
the UK after his installation of eight mil-
lion porcelain sunflower seeds in the
main gallery of London’s Tate Modern.
Yvette Cooper, the shadow home sec-
retary, has written to Theresa May,
home secretary, seeking an explanation.
Jodie Ginsberg, chief executive of
Index on Censorship, a campaigning
body, said: “The government has said
repeatedly in recent months that free-
dom of speech and expression are key
British values. The Home Office needs to
showthisindeeds,notjustwords.”
Over the past few years human rights
activists and government critics have
become increasingly frustrated as David
Cameron’s government has set off in
pursuit of the Chinese renminbi.
Having angered Beijing in 2012 by
having his photograph taken meeting
the Dalai Lama, Mr Cameron has since
been assiduous in courting Beijing. In
2013 he indicated he had no plans for
further meetings with the Tibetan spir-
itual leader, and sealed the rapproche-
ment later that year by taking Britain’s
largest ever trade delegation to China.
Last year, Mr Cameron dismayed pro-
democracy campaigners in Hong Kong
with an apparent reluctance to criticise
Beijing over its attempts to change the
voting system in the province. George
Osborne, chancellor of the exchequer, is
forging trading links. But his move to
sign up to the Asian Infrastructure
Investment Bank, seen as a Chinese rival
totheWorldBank,upsettheUS.
Mr Ai’s gallery in London, the Lisson
Gallery, said: “We hope this decision is
based on a misunderstanding and will
be quickly corrected.”
the Bank of England’s, except that most
members would be appointed by the
central government, not by the bank.
In a note yesterday, Capital Economics
described it as “a cause for concern given
the track record of previous govern-
ments attempting to dampen the central
bank’s power and independence”. Under
the code, the RBI would also be responsi-
ble for meeting inflation targets despite
havingnocontrolofinterestrates.
But Jayant Sinha, minister of state for
finance, has described the draft as “sim-
ply an input” to the debate and not gov-
ernment thinking. “The proposed mon-
etary policy committee of the RBI will be
setting the rates, not the government,”
he said this week. But there is a faction in
New Delhi that wants to curb the RBI’s
independence. “It’ll be in limbo for a
while. I can’t see it resolving very
quickly,”saidaformercentralbanker.
4 ★
Airliner search
Beach debris ‘major lead’ in hunt for MH370
Wreckage washed up on
La Réunion raises hopes
it is from missing aircraft
JAMIE SMYTH — SYDNEY
ROBERT WRIGHT — NEW YORK
AND MARK ODELL — LONDON
Malaysian officials expressed confi-
dence that a piece of aircraft debris
washed up on a beach on the Indian
Ocean island of La Réunion is from a
Boeing 777 jet, increasing the likelihood
it comes from flight MH370, the Malay-
sia Airlines aircraft that disappeared 17
months ago without a trace.
Malaysia’s prime minister, Najib
Razak, confirmed earlier comments by
one of his ministers that the piece of
wreckage was almost certainly from a
Roar of anger over Cecil puts focus on game hunting
Conservationists and shooting
groups are split on the best
method of sustaining species
JOHN AGLIONBY — LONDON
KATRINA MANSON — NAIROBI
When Cecil, Zimbabwe’s — and now
the world’s — most famous lion died 40
agonising hours after being shot by an
American dentist, he was at least lucky
enough to have spent the previous 13
years roaming free.
By contrast as many as 6,000 lions in
southern Africa are bred and raised in
captivity for the purpose of being
hunted by wealthy tourists.
The killing of Cecil by Walter Palmer,
the Minnesota dentist who has gone into
hiding after he provoked outrage
around the globe, has shone a spotlight
on big game hunting in southern Africa,
an industry that Peter Knights, execu-
tive director of the US-based WildAid,
estimates is worth around $1bn a year.
Cecil was allegedly lured illegally
from a game reserve in Zimbabwe and
two men have been charged over his
death and may face poaching charges in
a Zimbabwean court, while Mr Palmer
insists he did not know he was breaking
the law. Still, hunting is legal in parts of
Zimbabwe, as well as in Mozambique,
Namibia and Tanzania.
Meanwhile, in South Africa there are
200 farms whose main purpose is to
breed lions for wealthy tourists to come
and spend hundreds of thousands of
dollars to shoot them. About 900 are
killed in legal hunts each year, according
to Pieter Potgieter, the chairman of the
South African Predator Association.
“The rest are kept for tourist purposes
while some are exported, mostly to the
Middle East and Asia,” he says.
The practice has become known as
canned hunting. Cubs are usually sepa-
rated from their mothers early in their
lives and kept for petting until they
become a threat to tourists. Once they
are fully grown they are hunted.
Mr Potgieter and other canned hunt-
ing advocates say it is critical for sus-
taining the species. “By hunting captive
bred lions, the hunting pressure is taken
off the wild lions,” he says. “There’s a
direct link between the decline in the
hunting of wild lions and the increase in
the hunting of captive lions.”
Indeed, wildlife groups acknowledge
that in South Africa the population of
wild lions appears to have stabilised.
And lions, while regarded as at risk, are
not as endangered as other species, like
India executes accountant for helping plan 1993 bombings but chief suspects remain at large
Yakub Memon’s hanging has
reinforced the view New Delhi
seeks retribution not justice
AMY KAZMIN — NEW DELHI
India’s use of the death penalty was the
subject of renewed debate yesterday,
after authorities hanged a 53-year-old
Muslim accountant convicted of
involvement in a series of bomb blasts
that killed 257 people and injured
another 700 in Mumbai in March 1993.
Yakub Memon, who was found guilty
of helping to plan and finance the explo-
sions but who had maintained his inno-
cence, was hanged at 7am yesterday,
after India’s supreme court rejected his
last-minute mercy petition.
The 1993 bombings were the largest
co-ordinated terror attack ever on
Indian soil. Over a two-hour period on a
Boeing 777 aircraft. “Reports suggest
that the debris is very likely to be from a
Boeing 777, but we need to verify
whether it is from flight MH370. At this
stage it is too early to speculate,” Mr
Najib wrote on his official blog.
If the part is from a 777 twin-engined
jet, it is highly likely to be from MH370,
since other known losses of the aircraft
type — including last year’s shooting
down of Malaysia Airlines Flight MH17
over Ukraine — occurred over land.
Mr Najib said the piece of debris
would be sent to a laboratory in Tou-
louse, France, for inspection by investi-
gators from the Bureau d’Enquêtes et
d’Analyses. La Réunion is a French terri-
tory east of Madagascar, which under
international law makes the BEA the
lead investigative body.
Southern Africa. Wildlife protection
day that became known as “Black Fri-
day”, 13 bombs exploded in crowded,
high-profile locations, including the
Bombay Stock Exchange, the Air India
building, the passport office, cinema
halls, markets and hotels.
The main accused remain India’s two
“most wanted” men — former Mumbai
underworld figure Dawood Ibrahim,
and Mr Memon’s brother, Mushtaq
“Tiger” Memon. Both are believed to be
living in Pakistan, protected by Paki-
stan’s military intelligence, which New
Delhi accuses of helping to orchestrate
the bombings.
Members of the ruling Bharatiya
Janata party said Yakub Memon’s exe-
cution delivered justice for the victims
of the attack, and Mukul Rohatgi, the
attorney-general, urged that other
pending death penalty cases be acceler-
ated to deter further acts of terrorism.
Human rights activists, prominent
judicial figures and leading newspapers
FINANCIAL TIMES
INTERNATIONAL
The Malaysians, Australians and Chi-
nese have been conducting an extensive
search for the aircraft off the west coast
of Australia since it disappeared on
March 8 2014. The jet was carrying 239
people on a flight from Kuala Lumpur to
Beijing.
Warren Truss, Australia’s deputy
prime minister, described the discovery
of the debris as a significant develop-
ment. “It’s the first real evidence that
there’s a possibility that part of the air-
craft may have been found,” he said. But
he cautioned: “It’s too early to make that
judgment, but clearly we’re treating this
as a major lead.”
There were also unconfirmed reports
that a badly damaged piece of luggage
has been found close to where the debris
washed up on La Réunion. Journalist
In the
crosshairs:
protesters rally
outside Walter
Palmer’s clinic
in Minnesota
this week,
above, after he
shot Cecil, left.
The lion’s death
has provoked
questions over
big game
hunting by
wealthy tourists,
right
Eric Miller/Reuters; AFP/
Zimbabwe National Parks
Mumbai terror attack. Capital punishment
have condemned the execution, with
some saying the hanging offered the
“appearance” of justice rather than its
substance.
Bollywood star Salman Khan even
jumped into the fray last week, with a
controversial tweet suggesting Yakub
Memon was being executed in lieu of his
brother, while others have suggested
authorities were seeking retribution
and vengeance rather than justice.
The debate over the details of Mr
Memon’s case have spilled over into a
wider public discussion over the merits
of the death penalty.
“A truly lasting solution to the moral
dilemma that each instance of capital
punishment poses will be to abolish it
altogether and replace it with a sentence
of imprisonment for the rest of the con-
vict’s life,” the Hindu newspaper wrote
in an editorial, calling the hanging
“inhuman and unconscionable”.
Shashi Tharoor, a former Congress
Julien Delarue, who works for a local
newspaper, posted a photograph of the
suitcase on Twitter. It is not known
whether the luggage came from MH370.
The Australian Transport Safety
Bureau said yesterday that the discov-
ery of the wreckage on the island was
“not inconsistent with the current
search location” which is 4,200km east
of La Réunion. The search teams are
working on the theory that MH370
crashed within a 120,000 sq km area of
the southern Indian Ocean, 1,800km
south-west of Australia.
If the part is from the missing flight, it
could provide critical clues to the fate of
MH370: radar tracking showed the air-
craft changed course to the west after
heading north-east from Kuala Lumpur
en route to Beijing without any further
minister, tweeted: “Saddened by the
news that our government has hanged a
human being. State-sponsored killing
diminishes us all by reducing us to mur-
derers too.”
India’s judicial and intellectual elite
has grown increasingly uncomfortable
with the use of the death penalty, even as
the wider public — fed up with seemingly
pervasive lawlessness — appears hungry
formorewidespreadapplication.
Indians protest against the death
sentence in New Delhi this week
communication from the pilots. Later
analysis of satellite signals suggested the
aircraft had then turned south and
headed out over the Indian Ocean.
Assumptions were made about the
aircraft speed and height and it was
decided it was likely to have ditched in
the sea somewhere off Australia’s west
coast when it ran out of fuel.
A multinational force of ships and air-
craft have spent months searching a
large area of the Indian Ocean without
success. Experts said the discovery of
the wreckage so far from the theoretical
crash zone was consistent with the
direction of the ocean currents.
The undersea search for Flight
MH370 is one of the most complex and
expensive in aviation history, costing
about $150m to date.
rhino. But Alicia Craw, the international
head of wildlife campaigns at World
Animal Protection, says there are fewer
than 35,000 lions in the wild, or less
than 7 per cent of the estimated “origi-
nal” population. But hunters insist their
industry helps conserve animal num-
bers and protect their environments.
”You cannot hunt if you don’t have an
animal,” says Abdukadir Mohamed,
secretary-general of the Tanzania Hunt-
ing Operators Association, who argues
that hunters are conservationists by
default because they rely on big wildlife
populations for their income. He points
out that they also put money back into
communities as well as protecting ani-
mals and environments from poachers
in a bid to boost animal numbers.
Mr Mohamed says that while a licence
to hunt lions costs $5,000, the total cost
of a hunting safari can run from $50,000
to as much as $200,000 and earns the
Tanzanian government $12m each year.
Kenya, which relies on safaris for
much of its tourism revenues, banned
big game hunting soon after independ-
ence and more recently went on to ban
hunting game birds too. But some peo-
ple are calling for a rethink.
“I think hunting on the continent is
hopelessly corrupt but if it’s correctly
managed, it’s a useful tool to get revenue
back into supporting conservation,”
says Michael Dyer, a former hunter
turned conservationist who has
recently introduced rhino to his ranch
in the Kenyan highlands. He employs a
full-time team of guards akin to a well-
armed militia to protect 22 rhino.
As the reaction to Cecil has shown, the
issue remains emotive. Born Free a lion
charity, is among those joining a cam-
paign to stop the importation of hunting
trophies. Emirates airlines recently
responded to popular pressure and
instituted a ban. But hunters are win-
ning some of the arguments. Earlier this
month South African Airways reversed
its ban on the transport of lion trophies
and skins after intense lobbying.
“We informed them of the impor-
tance of the industry to South Africa,”
Mr Potgieter says. “And we told them
that if it’s government policy to support
the industry why should the national
carrier oppose the policy?”
But Mr Knights is among those hoping
that the photograph hunters will win
out over their gun-toting counterparts.
“It takes a lot more cojones to go after
a big animal armed with just a camera
than a high-powered rifle,” he says.
Additional reporting by Barney Jopson in
Washington
Notebook page 8
In 1980, India’s supreme court
affirmed the constitutionality of the
death penalty, but said it should be used
only sparingly — in the “rarest of rare
cases”. It subsequently clarified that
death was warranted to assuage “the
collective conscience of the commu-
nity” for particularly shocking crimes.
A total of 1,600 convicts have been
sentenced to death in India since 2000,
according to the National Law Univer-
sity and the National Legal Aid Services
Authority. But before yesterday’s hang-
ing, only three death sentences had
been carried out.
After the 2004 hanging of a security
guard for the rape and murder of a 14-
year-old schoolgirl, New Delhi imposed
an unofficial moratorium on enforcing
the death penalty. That ended with the
2012 execution of Ajmal Kasab, the lone
surviving Pakistani gunman from the
terror attack on Mumbai’s five-star
hotels and train station in 2008. Four
Friday 31 July 2015
Eastern Europe
Russian jets
test Nato’s
Baltic airspace
response time
SAM JONES
DEFENCE AND SECURITY EDITOR
Fighter jets from Nato’s Baltic air polic-
ing mission have scrambled to inter-
cept 22 Russian aircraft in multiple for-
mations in the past week, including two
of the largest interceptions over east-
ern European skies since tensions with
Moscow began to rise 18 months ago.
Nato aircraft have had to conduct emer-
gency deployments on more than 250
occasions this year over Europe, offi-
cials told the Financial Times, the high-
est number for an equivalent period
since the end of the cold war.
The alliance’s Baltic air policing mis-
sion has conducted 120 of those scram-
bles. The Europe-wide figure compares
with 400 events for the whole of 2014,
marking what Nato sees as a steady
growth in the size and seriousness of
Russia’s aerial provocations.
“In the last year, Russia’s air activity
close to Nato borders has increased in
quantity and complexity,” Nato said.
“Russian aircraft often fly without their
transponders switched on, without fil-
ing flights plans and without communi-
cating with air traffic authorities.”
Transponders allow civil aviation
authorities to locate aircraft easily.
Russia has been careful not to breach
Nato airspace, but the increase in activ-
ity can be seen as an attempt by Moscow
to test the alliance’s response times.
The European Aviation Safety
Agency, a civilian body, ruled in April
that Russia’s flights pose a “high risk” to
civil aviation.
In January, the UK summoned the
Russian ambassador to London for a
dressing down after Russian nuclear-
capable bombers disrupted civilian air
traffic over the English Channel.
Last October, Nato states were forced
to deploy emergency fighters in multi-
ple locations over a 48-hour period in
response to “significant military
manoeuvres” on the margins of Nato
airspace.
Nato has doubled the size of its Baltic
air policing mission this year as a result
of Moscow’s growing aerial probing. The
mission, which has been running for the
past decade, involves the provision of
combat aircraft to the Baltic states,
which do not possess their own air
forces.
Two Nato nations are required to con-
tribute fighters to bases in Estonia and
Lithuania for the mission on a six-
month rotational basis. Italy and France
are voluntarily stationing further fight-
ers at Siauliai in Lithuania and Malbork
in Poland.
On Wednesday, Norwegian F-16 fight-
ers stationed in Lithuania were scram-
bled to intercept 12 Russian aircraft.
The aircraft appeared to be flying as part
of a training mission but had turned off
their transponders.
Last Friday, British Typhoon fighter
jets stationed at Amari in Estonia were
deployed after Nato air defences picked
up 10 Russian aircraft approaching Bal-
tic airspace across the Gulf of Finland.
The alert is the single largest intercept
British airmen have performed in the
region. The Russian aircraft, which
included four MiG-31 fighters, were
tailed closely by the Typhoons as they
flew from Russia towards the enclave of
Kaliningrad. They had also switched off
their flight transponders.
The incident is the 18th so-called QRA
— quick reaction alert — from Amari for
the Royal Air Force this year, marking a
significant increase in activity.
Last year the RAF scrambled 13 times
in Estonia.
months after Kasab’s execution, Afzal
Guru, a Kashmiri convicted of involve-
ment in a 2001 attack on the Indian par-
liament was also hanged.
Last January, the supreme court com-
muted the sentences of 15 death row
prisoners after deciding the govern-
ment had unduly delayed in ruling on
their mercy petitions. The court subse-
quently commuted the death penalty
for three of the assassins of former
prime minister Rajiv Gandhi on the
same grounds.
Mr Memon’s execution has reinforced
perceptions that New Delhi is pushing
ahead with the execution of Muslims
convicted of political violence, while
going softer on Hindus.
“The standard is so subjective,” says
Karuna Nundy, a supreme court lawyer
opposed to the death penalty. “The
death penalty is bad even when uni-
formly applied but when it’s selectively
applied, that is when it really shocks.”
Friday 31 July 2015 ★ FINANCIAL TIMES 5
6 ★
In the wake of the NSA surveillance scandal, US tech companies are shielding more data from the
government’s eyes. But US and European officials say these steps make it harder to track terrorists.
G
rowing impatient with the
restrained debate among
the Washington policy
wonks, the bearded Sili-
con Valley engineer stood
up and took aim at the man on the
stage.
Admiral Mike Rogers, the director
of the National Security Agency, had
just made his case for a new legal
framework to allow the government
to monitor data surging through US
computer networks. Rising to chal-
lenge him was Alex Stamos, then the
top security engineer at Yahoo, who
denounced the idea that tech compa-
nies should build “back doors” into
their systems to give governments
access to information.
“If we’re going to build defects,
back doors or golden master keys for
the US government, do you believe —
we have about 1.3bn users around
the world — we should do [the same]
for the Chinese government, the Rus-
sian government, the Saudi Arabian
government, the Israeli government,
the French government?” Mr Stamos
asked.
Mr Rogers initially tried to laugh off
the attack. But then he struck back
against the tech industry’s claims of
responsibility to protect users from the
prying eyes of government.
“This simplistic characterisation of
one side is good and one side is bad is a
terrible place for us to be as a nation,”
Mr Rogers said. “We have got to come to
grips with some really hard, fundamen-
tal questions.”
The face-off in February was a dra-
matic demonstration of the impasse
between the US government and Amer-
ica’s most innovative industry. The bat-
tle is over encryption — software that
uses secret keys to protect credit card
details, private emails and corporate
secrets from cybercriminals. While tech
companies are embracing encryption,
Mr Rogers and top Obama administra-
tion officials are seeking the right to use
secret keys to track terrorists and other
criminals.
Before Edward Snowden leaked
details of the NSA’s mass surveillance
tactics two years ago, only a few technol-
ogy services used the tough type of
encryption that scrambles information
so even the tech and communications
companies cannot read it: Apple’s iMes-
sage and FaceTime, along with Micro-
soft’s Skype. But after the revelations,
the industry faced a backlash from con-
sumers who felt the tech groups were
complicit in allowing their data to be
monitored. Now tougher encryption is
fast becoming a standard — perhaps
offering consumers more privacy pro-
tections, but also potentially posing
challenges for law enforcement.
WhatsApp, the messaging app owned
by Facebook, turned on strong encryp-
tion software for Android users late last
year. Google and Yahoo are working on a
project to allow a similar level of secu-
rity in their email services by the end of
the year. As a result, their users — the
companies have a combined 2bn
accounts — will have at least the option
to encrypt their communication end-to-
end by the end of the year.
Yet this kind of encryption can also
render invisible information that gov-
ernment officials claim is vital to law
enforcement and national security. In
the words of James Comey, director of
the US Federal Bureau of Investigation,
the rise in encryption has meant that
huge swaths of the internet have “gone
dark”, making it harder to track terror-
ists and other criminals. In Europe —
where the post-Snowden backlash
against US tech was the loudest — fears
of teenagers using encrypted messaging
to communicate with fighters from the
Islamic State of Iraq and the Levant
(Isis) have led to the threat of new laws
to try to stop the tide of encryption.
Until recently, encryption was a pro-
hibitively expensive technology to use
on a large scale. Algorithms scramble
information into unreadable form, then
unscramble it — using lots of processing
power.
The relentless fall in the cost of com-
puting was already starting to change
that. But tech companies, eager to
repair their reputations with customers,
have embraced the technology. Google
has led the drive, having been humili-
ated by the revelation that its own gov-
ernment — along with that of the UK —
had hacked into its internal network
and tapped a trove of unencrypted data.
The news highlighted a blind spot in the
defences of a company that prided itself
on leading the industry in security.
Google quickly extended encryption to
FT BIG READ. FT SERIES: CYBER INSECURITY
By Hannah Kuchler and Richard Waters
Going dark
Who is encrypted?
Service Company
WhatsApp Facebook
Gmail
Google
Yahoo Mail Yahoo
Facebook Facebook
iMessage Apple
FaceTime Apple
Twitter direct messages Twitter
Skype Microsoft
FT graphic Source: FT research * Estimate
information it moves wholesale
between its own data centres — and
launched a campaign to persuade oth-
ers to use encryption as a default.
Sorry, can’t help you
But if the greater use of technology
like this has made illicit government
surveillance and criminal hacking more
difficult, it is the spread of so-called
“strong”, or end-to-end, encryption that
has really alarmed law enforcement
agencies. These systems take the tech-
nology a step further and make it impos-
sible even for the companies that proc-
ess or carry the data to unscramble it —
therefore preventing governments from
demanding they hand over informa-
tion, even with a court order.
IBM, Cisco and others that sell IT and
communications systems to companies
and governments were also hit hard by
the Snowden leaks. Among other things,
they fuelled a nationalistic backlash in
China as government buyers turned to
local tech suppliers, and gave the tech
suppliers good reasons to come up with
stronger guarantees about data security.
In response, IBM this year opened its
mainframe computer technology to
allow customers to use their own
Edward encryption algorithms — in effect,
Snowden giving them full control over their
set off a information and making it impos-
rush to sible for IBM, or any outside gov-
encrypt ernment, to read it.
data Big Blue has gone further,
licensing its server chip
technology to Chinese
manufacturers in a
way that gives them
control over
encryption, says
Martin Schroeter,
IBM’s chief finan-
FINANCIAL TIMES
Monthly active user numbers
800m (Android users)
900m
225m
1.4bn
450m (iPhone users*)
450m (iPhone users*)
302m
300m
cial officer — a measure he says that was
intended to reinforce trust and confi-
dence in the US company’s technology.
Other data services used by busi-
nesses have taken a similar stance.
Dropbox, one of the most widely used
“cloud” data storage services, has
opened its platform to let users bring
their own encryption. Tech companies
argue that such tactics guarantee both
the security of digital data and user pri-
vacy in the face of both government
over-reach and increasingly sophisti-
cated cyber criminals.
As an executive at one big US tech
company explains: “We don’t own our
customers’ data — we don’t want to be in
a situation where we have to hand it
over [to government] just because we
happen to be processing it.”
Tech executives hope that drawing a
clear line will address other doubts
about some of their other practices. The
Snowden scandal also raised new ques-
tions about companies such as Google,
which rely on collecting and analysing
large amounts of data about their users
to sell advertising.
A White House report into Snowden
shone the spotlight on the “big data”
practices of tech companies like Google.
In Silicon Valley, it was seen as a blatant
attempt by Washington to deflect atten-
tion from its illicit surveillance by drag-
ging the industry through the mud.
Offering users deeper encryption is one
way to respond to these disputes.
Return of the ‘crypto wars’
The resulting tide of encryption has
been vehemently criticised by govern-
ments and law enforcement agencies
across the US and western Europe.
Mr Comey, the FBI director, has made
a series of speeches criticising Apple and
Encrytion
End-to-end
HTTPS (end-to-end opt in due this year)
HTTPS (end-to-end opt in due this year)
HTTPS
End-to-end
End-to-end
None
End-to-end for internet calls,
not for calls to phones or chat
Google for going too far with encryption.
Most recently, he told Congress that it
was critical for his agency to be able to
access communications to combat Isis,
which is increasingly dependent on the
internet.
In Europe, the turnround from shock
at US mass surveillance to demanding
more rights for European governments
to read online communications, has
been swift and stark. French intelli-
gence services have won sweeping pow-
ers in a bill that legalised phone tapping
and email interception passed in May.
David Cameron, UK prime minister, has
proposed a complete ban on strong
encryption to “ensure that terrorists do
not have a safe space in which to com-
municate”.
Many in the cyber security industry,
however, claim that an outright ban
would be like trying to put the encryp-
tion genie back in the bottle. It would be
impossible to guarantee that technolo-
gies created to give government access
to encrypted systems would never fall
into the hands of hackers, they argue.
“There’s a lot of threats out there,
there are risks to people’s safety,” says
Scott Renfro, from Facebook’s security
team. “But at the same time, there’s no
way to weaken encryption and make it
available only to certain parties.”
Whit Diffie, a 71-year old security pio-
neer and co-inventor of the basic
approach used in most modern encryp-
tion systems, says systems work best
when they are “as simple as possible”.
This means that it is counter-productive
to try to build in the kind of special
access governments are demanding.
“If you compromise the basic tools,
you are particularly likely to make
exploitation by foreign governments
more feasible,” he says.
Friday 31 July 2015
The fight over encryption has echoes
of the 1990s, when the US government
pushed for the adoption of a silicon chip
it could decrypt remotely. This was
before the US launched the “war on ter-
ror”, but officials were already arguing
for more power to fight terrorism and
other crimes such as kidnapping.
The Clipper chip, designed for voice
communications, used an encryption
algorithm invented by the NSA. The key
would be put in escrow until the govern-
ment gained legal authority to listen to a
conversation. But the chip, announced
in 1993, was defunct three years later
after a backlash from anti-surveillance
campaigners and a lack of adoption
from manufacturers.
The “crypto war” of the 1990s was
only a shadow of what it is now, Mr Diffie
says. “Cryptography is extremely
important to the whole digital economy.
It has developed dramatically since the
last time we fought this battle, a little
less than 20 years ago.” Encryption is
now much harder for governments to
resist because it is now “in very, very
broad use”.
The cyber security threat is also much
greater, with nation states including
China and Russia pouring resources into
cyber espionage and well-funded organ-
ised criminal networks honing their
skills.
But many in the tech world argue gov-
ernments may actually have more
access to information than they did
before encryption started to become
standard. “I don’t think they are magi-
‘We don’t own our
customers’ data — we don’t
want to be in a situation
where we have to hand it
over to the government’
FT montage/Getty
cally unable to solve crime any more,”
says Bruce Schneier, a cryptographer.
Encrypted from “We’re living in a world where there are
dozens of investigative, forensic tech-
Nov 14 niques that have improved in the last
years — DNA, fingerprints, location.”
Mar 14 No compromise in sight
Jan 15 But with both sides staking out strong
positions, it is hard to see where a com-
Jul 13 promise will be found. Like many of the
methods used to fight back against a
Jun 11 wave of cyber crime, attempts to deploy
encryption risks getting mired in
Jun 10 complex political and legal debates even
as hackers power on, learning new
na tricks.
Google is set to provoke a new show-
Aug 03 down between law enforcement and the
tech industry this year with the release
of its own end-to-end encryption sys-
tem for use with its Chrome web
browser. People close to the project have
played down its potential impact, claim-
10110100110101 ing that only a small number of users are
011CYBER010110 likely to want to use it.
11100110101011 Many of the company’s other services
0 I NSECURITY 111 rely on the ability to monitor a user’s
10100110101011 actions so it can provide relevant infor-
mation or advertising — an ironic
FT series reminder of just how slippery the issue
This is the last of of encrypting data has become. When it
five articles on meets their needs, even tech companies,
cyber security.
To read the like governments, can see the necessity
previous pieces, of setting some limits to the use of
visit unbreakable encryption everywhere.
ft.com/ Mr Stamos, who now works at Face-
cyberinsecurity book, blamed the crisis over encryption
on law enforcement reaching for what
looked like an easy option — without
thinking about the consequences for the
security of users or the future of the tech
industry. “What are the knock-on
effects of asking for things like back
doors on the competitiveness of the
[US] tech industry, for other people
using our tech, and other countries ask-
ing for back doors themselves?”
C Secret battle The US and tech
groups are battling over encryption,
software that uses secret keys to
protect data
C All is revealed Before Edward
Snowden revealed the NSA’s
surveillance, few tech services used
tough “end-to-end” encryption
C Hard to crack Now, as Google, Yahoo
and others adopt tougher encryption
policies, government agencies warn
that security is being compromised
Friday 31 July 2015 ★ FINANCIAL TIMES 7
8 ★
FRIDAY 31 JULY 2015
Japan is justified in its
new defence posture
Abe needs to sell security stance better, at home and abroad
It is nearly 70 years since Japan’s sur-
render at the end of the second world
war. In 1947, under US occupation, it
adopted a pacifist constitution, written
by Americans, in which it renounced
the right to wage war. So difficult was it
made to amend that, unlike in the case
of Germany, not a single article of the
constitution has been changed since
then.
Now Japan is passing legislation that
will allow it to reinterpret this docu-
ment, enabling it to engage in what is
known as collective self-defence. Some
describe it as the biggest change to
Japan’s defence posture since the war.
That is an exaggeration. Japan has
already stretched the meaning of its
constitution to breaking point. Article
9 stipulates that it must not maintain
land, sea or air forces. In practice, and
initially under US urging, Japan has one
of the best-equipped armed forces in
the world. The fact that it is known as
the Self Defence Forces provides a fig
leaf. Japanese troops have participated
in UN peacekeeping operations, helped
fuel US combat-ready ships in the
Indian Ocean and even built infrastruc-
ture in Iraq.
Now, Shinzo Abe, the conservative
prime minister, wants to make it easier
for Japan to deploy its military abroad.
Broadly, collective self defence will
allow it to fight alongside its US ally in a
conflict, say a war on the Korean penin-
sula, deemed to pose an immediate
threat to Japan’s security. It will also be
able to help the US logistically in situa-
tions that have a significant influence
on Japan. Such changes, actively sup-
ported by Washington, are opposed by
China and South Korea, which see
them as evidence of a new Japanese
militarism.
It is true that Mr Abe is a nationalist.
It is also true that he has some dis-
tinctly revisionist views. Nor has he
done a good job at explaining the need
Renzi needs to sharpen
his rapier of reform
The Italian PM cannot allow the pace of modernisation to abate
A year ago, Italy’s prime minister Mat-
teo Renzi gave an interview to the
Financial Times — his first with a for-
eign newspaper — promising to change
his country. At one point brandishing a
rapier for dramatic effect, the then 39-
year-old former mayor of Florence said
he would enact tough reforms. Not only
would these return Italy to growth,
ending a three-year-old recession, but
he would revive a “sleeping beauty”
that after more than a decade of stagna-
tion is carrying a debt burden of 130
per cent to gross domestic product.
Fortune favoured his chutzpah. A
weakening euro, lower oil prices and
quantitative easing by the European
Central Bank gave him wind at his back
for the first part of this year. More
recently, comparison with another
young politician from southern Europe
— Alexis Tsipras — has made Mr Renzi
appear an exemplar of Generation X
statesmanship.
Nor has Mr Renzi idled. Unleashing a
blizzard of activity from his office in
Rome he has declared “done” reforms
of the electoral and judicial system,
labour market, education and banks.
Investors have noticed. Foreign
investment into Italy has surged four
fold, to a total value of $19.3bn in the 12
months to June. Foreign buyers cite
political stability and the speeding up
of company litigation and bankruptcy
proceedings as significant, along with
attractively low asset prices. This week
Germany’s HeidelbergCement bought
family-owned Italcementi for €1.7bn.
Meanwhile, capital from the west
and east is flowing into Italy’s stock
market. BlackRock has taken stakes in
Snam, UniCredit, Luxottica, Prysmian,
Atlantia, Intesa, Telecom Italia, Eni,
Enel and Generali. People’s Bank of
China is today a significant investor in
many of the same.
But despite these votes of confi-
dence, Italy’s economy is showing only
for collective self-defence to his own
public. In Washington, he has played
up Japan’s new role to act alongside the
US, while at home he has tried to
present the changes as minimal.
According to opinion polls, a majority
of Japanese do not like the new security
stance, with many fearing Japan
could get dragged into US military
adventures.
Even so, the changes are justifiable.
The rise of a militarily more muscular
China alters Japan’s security environ-
ment. So does the fact that an unstable
North Korea has a nuclear bomb. Japan
has not done as good a job at atoning for
its wartime aggression as Germany, but
Japanese troops have not fired a shot at
an enemy in 70 years. If the security
bills currently trundling through par-
liament are passed, Japan’s constitu-
tional leeway to engage in military
action will still be more restricted than
almost any other country in the world.
Besides, many Asian countries, includ-
ing India, the Philippines and Vietnam,
are worried about China’s growing
assertiveness and support a more mili-
tarily capable Japan.
Still, there are dangers. Japan should
use its new powers sparingly. It must
not look as though it is ganging up with
the US to contain China, a policy that
could backfire if Beijing concludes its
legitimate interests are threatened. Mr
Abe should also work harder at pre-
senting Japan as a modern, peaceful
nation. When he gives a speech on the
70th anniversary of the war next
month he should repeat previous apol-
ogies, and even expand on them in the
interests of trying to bury history once
and for all.
If he does all that, China should
reciprocate. It is time for Asia to put the
events of 70 years ago behind it. A
more “normal” Japan — if one still con-
stitutionally restrained — is part of that
process.
weak signs of growth. The Bank of Italy
in July raised its GDP forecast to just 0.7
per cent in 2015 from its previous 0.5
per cent, and expects 1.5 per cent in
2016. A monthly bonus of about €80
for middle-income Italians is having
little effect.
In spite of a much trumpeted reform
of the labour market, unemployment
remains stubbornly high at 12.4 per
cent. Youth unemployment is 41.5 per
cent. The IMF this week said that with-
out a significant acceleration in growth
it would take Italy 20 years to return
unemployment to pre-crisis levels. Its
public debt remains as high as before.
Now the wind at Mr Renzi’s back is
abating. Eurosceptic, anti-immigration
parties are gaining traction amid per-
vasive public gloom about the econ-
omy, corruption and a migration crisis.
His centre-left party’s polling is down
from mid-2014 highs of 45 per cent to
below 35 per cent. The timetable for
reforms is continuing to slip. Pledged
overhauls of the Senate, public admin-
istration and tax reform, the real game
changers for Italy, are now far more
vulnerable to political compromise.
Amid this darkening picture Mr
Renzi this month has pledged to slash
taxes on first homes next year, corpo-
rate taxes in 2017 and income taxes in
2018, on top of €18bn of tax cuts
pushed through since last year.
But while a reduction in the 30 per
cent corporate taxation is badly
needed, the first homes giveaway looks
like a populist sop. Mr Renzi also can-
not in seriousness go to Brussels argu-
ing for leniency on a budget deficit of
2.6 per cent without making extensive
— and unpopular — spending cuts to
Italy’s costly public administration.
Mr Renzi, like Silvio Berlusconi, likes
to present himself as Italy’s saviour. His
progress is better than that of his dis-
credited predecessor. He needs to
sharpen his rapier to show he means it.
FINANCIAL TIMES
Forced to work more hours just to maintain living standards
Sir, There is surely a third explanation
for the fact that working hours have
not diminished as Keynes anticipated.
As Tim Harford suggests (“The
rewards for working hard are too big
for Keynes’ vision”, July 30), some
work because they enjoy what they do,
others because they want more money.
The third category, though, consists of
those caught by the changing terms of
trade in the labour market. In many
countries real wages have declined in
recent years, especially for those
without scarce skills — a category that
includes not just manual workers but
also journalists and academics. To
maintain let alone improve living
standards, many people have to work
more hours, often in multiple jobs. This
shift is the product of ever-advancing
technology, globalisation and
population growth — factors
Christian approach
to usury forced Jews
into moneylending
Sir, John Kay is right that the small
Jewish community in the Middle Ages
was scapegoated for money lending
(“What St Luke would say to
Schäuble”, July 29). This was ironic on
two counts. First, they were forced into
these occupations by the Christian
approach on usury, or the restrictions
on lending money at interest. Second,
Jewish financiers, like Aaron of
Lincoln, actually helped to build
Lincoln Cathedral, St Albans Abbey
and at least nine other monasteries.
This year, we are marking the 800th
anniversary of the Fourth Lateran
Council in 1215, which said that Jews
living in Christian lands should wear a
badge on their clothing. The economic
tensions, allied to religious-based anti-
Semitism, had dramatic consequences,
leading to the expulsion of the Jews in
1290 by King Edward I. England had
the shameful record of being the first
country to expel its Jews, and was
swiftly followed by the likes of France
in 1306 and Spain in 1492.
Zaki Cooper
Trustee, Council of Christians and Jews,
London W1, UK
Caliphate of Isis is
un-Islamic and brutal
Sir, As a proud Brit and just one of the
7,000-plus British youth members of
the peaceful Ahmadiyya Muslim
Community, I find there to be no
conflict in being British and my
Islamic faith. However, I do find there
to be an issue with David Cameron’s
presumption that we cannot deny “a
connection between the religion of
Islam and the extremists”.
Islam’s foundation is the Koran
which clearly rejects extremism and
terrorism of any kind. I would not
disagree if Mr Cameron were to say
there is a link between terrorism and
certain Muslims. This I believe is a very
simple but significant distinction and
the UK government should
acknowledge this. When Islam is said
to have a link with extremists, every
peaceful Muslim is understandably
hurt to see his/her faith’s peaceful
teachings linked to barbaric acts that
find no basis in the Koran.
The Caliphate of Isis is completely
un-Islamic and brutal. But it must be
Walter the
dentist: the new
face of the great
white hunter
Notebook
by Robert Shrimsley
Letters
unmentioned in Keynes’ famous essay
on the possibilities for our
grandchildren.
On one other factor Mr Harford is
definitely wrong. He suggests that
Keynes as the guardian angel of
economists could be looking down on
him as he writes his column. Keynes
would never look down on a fellow
economist. He would debate fiercely
and then, as the facts have changed
since 1930, he would gracefully and
generously adjust his views.
Nick Butler
Visiting Professor,
Kings College London
Sir, Keynes wrote “Economic
Possibilities for Our Grandchildren”
many years before he had devised his
General Theory (“The rewards for
working hard are too big for Keynes’
remembered that the concept of
Caliphate is a central Islamic concept,
and there is nothing wrong with the
concept as long as it is the true peaceful
Caliphate. The tens of millions of
Ahmadiyya Muslims across the globe
have already been living under a
spiritual Caliphate for more than 100
years. And the Caliphate has guided the
Ahmadiyya Muslims to the true
peaceful teachings of Islam of loyalty to
one’s nation.
As a result, Ahmadi Muslims in
Britain typically raise £400,000 a year
for British charities such as Marshal
Leukaemia and Lymphoma Research
and Macmillan Cancer Support, and set
a prime example of British Muslims
who actively contribute to the fabric of
British society.
Farhad Ahmad
Surbiton, Surrey, UK
Pension plan makes
GM look less enticing
Sir, The implied valuation of GM
(“General Motors: on the Buffett table”,
Lex, July 29) would certainly be
enticing if true. Not taken account of in
the analysis are several factors,
including the company’s vast pension
underfunding, which, while listed at
$24.1bn at fiscal year-end, is actually
closer to $29.4bn when more realistic
actuarial assumptions are utilised.
Additionally, the failure of GM to fund
the plan properly leads investors into
believing their cash flows and GAAP
results are higher than economic
reality would dictate. For instance, for
its last fiscal year, GM contributed just
$913m versus almost $7.5bn in benefit
So Walter the dentist now has at least
a sense of what it must have been like
to be Cecil the lion even if he will
make for a less impressive wall-
mounting.
The Minneapolis dentist who killed
the apparently beloved lion after it
was tricked out of its protected park
in Zimbabwe is now facing the full
fury of a public backlash for his
callous action, which has not only
upset most right-thinking people but
also disappointed Ricky Gervais.
Many will take pleasure in the
thought of the hunter being hunted.
We can imagine the reports. “Walter
was lured out of his protected practice
by small game hunters who tempted
him with reports of an inflamed
bicuspid. News of his disappearance
has shocked locals. Walter was much
respected in Minneapolis and was
described by colleagues as a very
loving dentist. We do not know what
happened — he was not wearing a
tracking collar and had left his Fitbit
at home, but investigators are trying
to pin down his last movements using
his find my iPhone service. The worry
is that even now he is adorning the
wall of some big cat’s den, next to a
cosmetic surgeon and two podiatrists.”
One does not have to succumb to
the almost Princess Diana-like
hysteria about a “loving” lion to be
appalled by the cruelty and cowardice
of a man who already has a conviction
for killing a black bear.
However, one wonders whether the
notion of Walter as the new poster boy
for the white hunter might have a
vision”, Tim Harford, July 30). From
then on he understood that the
potential gains to society from
technology depended on a monetary
and fiscal policy regime that permitted
adequate and stable aggregate demand.
For some 25 years after the war a policy
regime on these lines prevailed —
though one far from his ideal. It was
replaced by a regime wholly at odds
with his theoretical and practical
conclusions.
His later writings in his capacity as
a Treasury official in the war did
indicate that he still envisaged a time
when leisure increasingly replaced
work. But he could not foresee policy
into the future. Joan Robinson, his
Cambridge colleague, later remarked:
“The great trouble with Keynes was
that he was an idealist. He thought that
when people could understand his
payments. Such underfunding has
taken place each year post the IPO.
The upcoming end of federal pension
— MAP 21 — relief will only add to the
burden. In addition, GM’s periodic
pension cost, the amount shown on the
profit and loss, of just $151m is puny in
relation to the true liability and yearly
benefit obligations, while inflating both
GAAP income and commonly defined
cash flows.
Finally, GM’s financial subsidiaries
will require greater amounts of cash if
the company is to grow. During its
latest fiscal year, GM Financial saw its
accounts receivables grow by almost 14
per cent, or $3.9bn.
All in all, given these considerations,
GM’s cash flow to enterprise value is
closer to 8.4 times, rather than Lex’s 3
times. I would thus be quite surprised if
Warren Buffett made a play for the
entire enterprise.
Kenneth S Hackel
Alpine, NJ, US
Japanese communities
embracing biomass
Sir, Your analysis of the constraints
Japan faces in increasing the share of
renewables in its energy mix (FT.com,
July 28) made no mention of biomass,
despite using a chart showing that it is
predicted by the Japanese government
to account for as much 4.6 per cent of
Japan’s electricity mix by 2030, more
than wind and geothermal.
More than 4GW of capacity is
planned by 2030, supported by the
Japanese government through a 20-
year feed-in tariff. Currently Japan
imports much of its feed stock in
various forms including Indonesian
palm kernel shells and energy chips
from eastern Russia, but there is huge
potential for sustainable sourcing from
local forests, and predominantly using
timber from forest thinning. Some 67
per cent of Japan’s land area is made up
of forest, dwarfing Germany (32 per
cent), France (29 per cent) and the UK
(12 per cent). Moreover, biomass-
generating capacity is not limited as
solar is by the number of abandoned
golf courses, nor is it widely opposed
like geothermal; rather, it is embraced
by local rural communities finally
achieving security of supply on Japan’s
small islands.
Ingo de Buhr
Chief Executive,
PN Power Plants,
Düsseldorf, Germany
more beneficial impact than might
immediately be imagined. The idea of
the great white hunter conjures up
images of Clark Gable in Mogambo or
Allan Quartermain from King
Solomon’s Mines, men of courage who
pitted themselves against beast and
put themselves in harm’s way. It is this
notion of masculinity that attracts
other — how can we put it — less
obviously virile figures to the pursuit.
Today’s great white hunters are
more like the dregs of the old colonial
order, pampered tourists pouring
dollars into distressed or enfeebled
African economies and pilfering their
natural resources just as surely as if
they were extracting minerals.
Now, however, we have a new face
of the white hunter. He is no longer
Clark, the matinee idol; he is Walter
the dentist from Minneapolis.
Checking up on Corbynism
Britain’s opposition Labour party has
promised careful checks to stop entryists
joining the party to vote for the hard left
candidate for leader, Jeremy Corbyn.
Hello, I’m calling on behalf of the
Labour party about your application
to join and to welcome you to the
fastest growing political movement
outside Scotland.
Now, as we are in the middle of a
leadership contest, we are just doing a
few checks on new members before
we issue them with a ballot paper.
First question: Did you actually vote
Labour at the last election. You did?
Really? That’s fantastic, we don’t find
Friday 31 July 2015
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
theory, could understand how the
capitalistic system actually works, they
would behave in a reasonable manner
and operate the system in such a way
as to produce favourable results, to
produce a high and stable level of
employment . . . ” (recorded in
Richard Kahn’s The Making of The
General Theory, Cambridge University
Press, 1984).
We simply do not know how his early
predictions would have fared had
people “behaved in a reasonable
manner”, but it is hardly of the greatest
importance. The dismissal of Keynes’s
doctrine may have implications for
society that go far beyond matters
of leisure.
Geoff Tily
Senior Economist,
Economics and Social Affairs Dept,
TUC
In fact, Cameron could
lawfully send troops
into the Cayman Islands
Sir, According to Jonathan Quarmby
of law firm Stephenson Harwood,
the UK prime minister “does not have
the power to force Cayman, Panama
and various other jurisdictions to
publish data on the ultimate beneficial
owners of companies incorporated
in those jurisdictions” (“Doubts grow
over property transparency pledge”,
July 29).
Really? The Cayman Islands are a
British Overseas Territory. It is
parliament that has decided it can be a
secretive tax haven, and parliament
that could change its mind about that.
The UK could lawfully send in the
troops, if it came to it. That is not true
for Panama.
Trevor Pateman
Brighton, UK
The Nikkei has no letters
column, so I write to you
Sir, I am a regular reader of both the
Nikkei, Japan’s business daily, and the
Financial Times. Last week, the Nikkei
devoted a disproportionately sizeable
space to its acquisition of the FT.
Understandably it is the largest
transaction the Nikkei has undertaken
domestically and internationally, but
I was somewhat perplexed to find that
the articles were not written with its
customary uncompromising
inquisitiveness.
I wanted to write to the Nikkei, but
as the Nikkei does not carry a readers’
page, I decided to send a letter to the
FT instead.
Kazuo Mike Fujisawa
Tokyo, Japan
An EU directive and
the price(s) of the FT
Sir, Your front page report “Disneyland
Paris faces probe on prices paid by
foreigners” (July 29) contends that the
EU services directive bans forcing
consumers to pay more because of
their country of residence.
This contrasts nicely with the
prices of your newspaper in different
EU locations, ranging from €3.50
to €6.99, which are listed on the
same page.
Lucas Bouwhuis
Utrecht, The Netherlands
many like you these days.
OK, next: Are you or have you ever
been a communist? That’s just a little
joke to break the ice . . . you aren’t
though are you? Oh good, we used to
have quite a few of them and they
were a terrible nuisance. Kept banging
on about the workers and absolutely
no sense of humour.
Right. Are you or have you ever
been a Conservative? That’s not quite
as serious but it is frowned upon.
You’ve never tried to open a free
school have you? That’s a real no-no
for us. And you weren’t ever at college
with David Cameron. We have to ask.
Next: Do you have any posters of
Che Guevara in your room? Oh well, at
least it’s not Russell Brand. But if you
are with us for the long haul, we
suggest Obama “Hope” posters — or
maybe something with Miles Davis.
Do you hate the rich? Ah no sorry,
the line is that you don’t believe in the
politics of envy, you just want a fairer
distribution of wealth. Mention
Piketty if you like.
OK next question: Do you consider
America to be the greatest threat to
world peace? Oh dear, I’m afraid that’s
a third rail question. The correct
answer is we believe in a candid
friendship. What’s that? You’ll know
better when you try again.
Last question: Do you actually want
Labour to win the next election or are
you happy in opposition? That’s fine.
Take as long as you like. Looks like
we’re going to be here a while.
robert.shrimsley@ft.com
Friday 31 July 2015
The land of free markets, tied down by red tape
FINANCE
Gillian
Tett
E
very nation needs a unifying
idea. Americans love to see
themselves as champions of
free markets and entrepre-
neurial zeal — and have long
been more welcoming to entrepreneurs
than has most of the western world.
But the 2008 financial crisis tarnished
America’s self-image (with, for exam-
ple, the eyesore of state support for
mortgages). The entrepreneurial halo is
starting to slip, too, since increasing
quantities of red tape are making life
harder for start-ups, relative both to the
past and to the rest of the world.
Take a look at a striking report issued
by the White House this week on occu-
pational licensing, the rules that force
workers to obtain qualifications to do
certain jobs. Five decades ago, occupa-
tional licences were required only in
The Calais
migrants are
Europe’s shame
GLOBAL POLITICS
Philip
Stephens
T
he migrant crisis at Calais is
a story of human misery,
war-torn and broken states
and European denial. It
speaks to a world in which
advanced nations have lost the will, and
some of the capacity, to prevent and
resolve conflicts. Their politicians will
not find an answer by drafting in more
police or building higher fences.
An estimated 5,000 people are
camped, in dreadful conditions, around
the French ferry port and its entrance to
the cross-Channel tunnel. The numbers
have been rising through the year. So
has the desperation of the migrants to
make it across the 21-mile sliver of sea
that separates France from Britain.
The governments of the two counties
have spent tens of millions of euros
on security measures to prevent the
migrants from clambering on to trucks
and trains. The effort, predictably, has
been futile. This is what happens when
policymakers opt to treat symptoms
rather than causes.
Calais is the end of a funnel that has
seen tens of thousands of migrants flee-
ing war and destitution in the Maghreb
and beyond. Some are what politicians
disdainfully call “economic migrants” —
OPINION
Randall
Kroszner
O
ne hundred years ago this
month, 2,500 passengers
in a festive mood boarded
the SS Eastland for a picnic
cruise on Lake Michigan.
Just as the ship was to leave its mooring
in the Chicago river, the Eastland sud-
denly capsized and 841 passengers lost
their lives — more than in the Titanic
disaster.
The fate of the Eastland is one of
America’s great unremembered trage-
dies, yet it carries important lessons for
policymakers today, specifically about
how a regulatory response to one disas-
ter can unleash unintended conse-
quences that could contribute to
another. The fifth anniversary this
month of the Dodd-Frank Act reform-
ing financial regulation seems like a par-
ticularly good time to consider this.
After the Titanic’s sinking in 1912, an
specialist arenas such as nursing. But, in
recent years they have proliferated so
dramatically that a quarter of all Ameri-
can workers must secure one from indi-
vidual states. Sometimes this is justi-
fied: airline pilots need licences. But
often, as in the three years of training
needed to become a security guard in
Michigan or the thousands of hours
required for hairdressers in Utah, the
rationale is less clear.
The process of securing these licences
is often so costly and cumbersome that
one recent study estimated costs for
consumers at $200bn a year. More
importantly, licences deter many
would-be workers — and entrepreneurs.
A separate World Bank report is even
more sobering. Last year it ranked
countries according to their levels of
support for the corporate world. This
placed America in seventh place in
terms of overall ease of doing business.
But the US was ranked 46th — yes, 46th
— in terms of how easy it is to start a
company. This is worse than Estonia,
Malaysia, Georgia and even France.
One important reason for this dismal
position is that in America entrepre-
as if it is somehow reprehensible to seek
an escape route from poverty and worse
— but the largest portion are the victims
of war. Syrians head the list, followed by
Eritreans, Somalis, Iraqis and Afghans.
What unites them is a belief that any
risk — trekking thousands of miles
across Turkey and the Balkans, drown-
ing in the Mediterranean, falling under a
truck or a train at Calais — is small meas-
ured against the dangers at home.
There is nothing new about large
movements of displaced people. In
recent memory, Europe has managed
the influx of refugees from the former
Yugoslavia as well as those from seem-
ingly never-ending conflicts in Somalia
and Afghanistan. What has changed —
and this was a point eloquently made by
António Guterres, the UN High Com-
missioner for Refugees, when he gave
the Ditchley Foundation annual lecture
this month — is the spread and persist-
ence of conflicts in failed and failing
states. The pendulum in advanced
nations has swung from liberal inter-
ventionism to furtive inaction.
Mr Guterres observed that five years
ago an estimated 11,000 people were
fleeing war every day. By last year the
figure had quadrupled to more than
42,000. Of these roughly two-thirds
were internally displaced, but the
remainder were forced to seek refuge
abroad. The contrast he drew was with
the 1990s. Then, albeit sometimes after
much hesitation, rich nations acted — in
Bosnia and Kosovo, Sierra Leone and
East Timor. Now, whether it is South
Sudan, the Central African Republic or
Beware of a Titanic response to Dodd-Frank
International Conference on Safety of
Life at Sea was convened to develop a
global response. Sensible reforms
included taking more southerly transat-
lantic routes to reduce the likelihood of
encountering icebergs and creating an
iceberg patrol, still operating today, to
monitor and warn of the risks.
Similarly, after the 2008-2009 finan-
cial crisis, the Group of 20 leading
nations, Financial Stability Board, the
Basel Committee and other interna-
tional regulatory bodies convened to
provide a co-ordinated global response,
promoting rules to reduce banks’ risk
exposure and to increase macropruden-
tial monitoring.
But an important response to the
Titanic was “lifeboats for all”. If only the
Titanic had had enough lifeboats for all
its passengers and crew, perhaps no one
would have perished. What could be
more sensible and obvious?
The measure was adopted in the 1914
International Convention relating to
Safety of Life at Sea. It was immediately
clear to some, however, that this policy
might have unwanted ramifications. In
testimony to Congress, A A Schantz, the
★ FINANCIAL TIMES
Comment
neurs need, on average, to navigate six
different legal and regulatory hurdles to
start a company. In New Zealand and
Canada, which top the league, there
is just one procedure. The complexity
faced by Americans means that it
takes them on average about six days
to create a start-up; in many other
countries the process is much faster
and cheaper.
Some of America’s abundant
paperwork is justified: pilots
need licences. But often the
rationale is less clear
Of course, this World Bank league
does not tell the whole tale. The Ameri-
can national average conceals signifi-
cant geographical variations because it
is municipalities that set many of the
business rules. Thus research by
Thumbtack, a West Coast website that
connects consumers with local busi-
nesses, and the pro-entrepreneurship
Kauffman Foundation shows that it is
Syria, the chosen posture is quiescence.
Ten years ago the UNHCR helped a mil-
lion people a year return to former con-
flict zones restored to stability. By 2014
the number had fallen to 126,000.
For all the panic generated by the
5,000 camped in the so-called “jungle”
at Calais, Europe has been only slightly
touched. Running scared of the populist
right, politicians have lost a sense of pro-
portion. An estimated 150,000 people
have crossed the Mediterranean and
Aegean in the first half of this year. That
is much more than in 2014, but it is to be
measured against a population for the
28-nation EU of about 500m; and it
remains a small fraction of the 4m who
have fled the civil war in Syria. Up to 2m
Syrians have fled to Turkey and, as Mr
Guterres noted, fully one-third of the
The pretence that
fences are an answer pours
fuel on to the fires of
anti-immigrant populism
general manager of the Detroit & Cleve-
land Navigation Company, questioned
whether such a requirement should be
applied to ships plying the Great Lakes.
“The extra weight of the lifeboats
and rafts would make [ships on the
Great Lakes] top-heavy and unseawor-
thy, and . . . some of them would
turn turtle [capsize] if you attempted to
navigate them with this additional
New regulations can
undermine their own goals;
‘lifeboats for all’ can bring
a false sense of comfort
weight on the upper decks,” he said.
While Congress did not mandate “life-
boats for all” for ships on the Great
Lakes, the 1915 La Follette Seaman’s Act
significantly increased the require-
ments. The Eastland had already
increased its number of rafts in 1914, as
federal inspectors tightened the rules.
Just three weeks before the tragedy,
and after the passage of the act, the East-
much easier to start a company in Texas
than, say, California. Moreover, red tape
is only one factor that determines
start-up activity; what also matters is
whether there is access to capital and
a culture of respect for entrepreneurs.
Nevertheless the data represent pol-
icy challenge — doubly so since data
from the Kauffman also show that the
rate of new business creation today is
“well below historical trends”, even
though it rose this year (after several
years of decline).
The White House has attempted to
respond to the problem: this week Presi-
dent Barack Obama urged states to
reduce the number of occupational
licences. Last month, he launched a
“Start Up In a Day” initiative to slash the
length of time it takes to create a busi-
ness; it is offering a $1.5m prize to any-
one who uses technology to streamline
the process.
It is clear that far more needs to be
done, however. One idea that policy-
makers ought to discuss is whether it is
time to introduce a “sunset” principal
for business regulations — an assump-
tion that regulations should automati-
population of Lebanon now comprises
Syrian or Palestinian refugees.
European governments argue about
how to share out the “burden” of 40,000
asylum seekers — most of them young
men, many highly skilled and all eager
for work as well as sanctuary. Germany
and Sweden, two nations more open
than most to the migrants, will profit
from their generosity.
It should be obvious that individual
states cannot go it alone. Barriers are
being thrown up by nations across the
continent. At very best they simply
divert the problem. There are some in
Britain who blame Europe for the crisis.
These eurosceptics claim that by leaving
the EU, Britain could reclaim control of
its borders. The Calais crisis points pre-
cisely in the opposite direction. Without
French co-operation David Cameron’s
government would be powerless.
Europe’s problem is Britain’s problem,
and vice versa.
The pretence that fences are an
answer pours fuel on to the fires of anti-
immigrant populism. Voters are less
worried by numbers than by the sense
land added more life boats and rafts to
boost its licensed capacity to accommo-
date 2,500 passengers for the ill-fated
picnic cruise. The ship was designed in
1903 with six lifeboats. When the catas-
trophe occurred, it had 11 lifeboats and
37 life rafts. (Each raft weighed some
1,100 pounds.)
The additional weight of the lifeboats
and rafts may have been only one factor
contributing to this calamity, but it
illustrates how powerful unintended
consequences can be of even the most
sensible-seeming regulatory reforms.
So what is to be learnt from the Eastland
disaster?
First, even if a rule solves some prob-
lems, it does not necessarily solve them
all. In some cases, new regulations can
undermine their own goals, creating
new sources of instability. New rules can
interact with other weaknesses in the
system. “Lifeboats for all” can bring a
false sense of comfort, and inspectors
and supervisors may not look as care-
fully for other vulnerabilities.
Second, one-size-fits-all regulation
may not be appropriate. Higher capital
and liquidity requirements for the larg-
cally expire after a given period unless
specifically renewed.
This concept flies in the face of cur-
rent practice, which tends to leave rules
on the books unless they are deliber-
ately repealed. And sunset comes with
drawbacks: renegotiating regulations
can introduce business uncertainty and
endless lobbying fights.
But some policymakers are talking
seriously about the idea. Indeed one
congressman, Chris Collins, introduced
a bill this week calling for a seven-year
sunset approach. The concept needs to
be discussed, if nothing else because it
might start a proper conversation about
which start-up rules — and occupational
licences — are worth keeping and which
are not, and how to stop the sprawl of
red tape.
Who knows? In a country that wor-
ships the ideal of the plucky start-up, a
campaign to slash red tape could be one
of the few things that all the presidential
candidates actually agree on. Even (or
especially) that arch entrepreneur him-
self, Donald Trump.
gillian.tett@ft.com
that governments have lost control. One
answer is to replace the Calais jungle
with Europe-wide centres to document
the refugees and, if necessary, return
illegal migrants to their home nations.
If genuine asylum seekers are to be
persuaded not to risk life and limb
crossing the Mediterranean or the
Channel, EU governments must also
offer legitimate routes to settlement. As
for domestic public opinion, the politi-
cians should have learnt by now that
chaos fuels fear; fair, effective manage-
ment provides reassurance.
The world has changed. The relative
power of Europe has slipped still faster
than that of the US, and with it the
capacity to fix problems in its neigh-
bourhood. That is not to say it can abdi-
cate responsibility. The EU still has the
tools — economic, political and military
— to promote order beyond its borders,
sometimes on its own, more often as a
convening power. The Calais crisis is just
one more a lesson in the costs of hiding
under the bedcovers.
philip.stephens@ft.com
est global banks relative to smaller
banks may be appropriate, just as “life-
boats for all” may be more appropriate
for transoceanic ships but not for steam-
ships on the Great Lakes.
Third, costs and benefits need to be
taken seriously. The anniversary of the
Dodd-Frank act is an excellent moment
to gather data to assess the benefits and
costs, their interactions and potential
unintended consequences. Have activi-
ties moved into the shadows and how
has this affected the robustness of the
system? What has been the impact on
liquidity of markets? As with icebergs, it
is not what you can see but what you
cannot that is often most dangerous.
The key lesson from the Eastland
tragedy is certainly not that regulation
is inevitably counterproductive but that
we always need to consider unintended
consequences and cost-benefit trade-
offs, even for extremely well-motivated
rules, to protect us from turbulence in
financial markets — and on the seas.
The writer is a professor of economics at the
University of Chicago and former governor
of the US Federal Reserve
9
To prevent
Brexit, Cameron
must stand up
to the eurozone
OPINION
Charles
Grant
C
an Britain, a country that
plans to keep its own cur-
rency, feel comfortable in an
EU that is increasingly
focused on the euro and its
troubles? As David Cameron’s govern-
ment starts negotiations with its part-
ners on the terms of Britain’s member-
ship before an in-or-out referendum,
this question is becoming a priority for
the UK. Arguments over EU migrants’
access to benefits will generate more
political heat, but the relationship
between the eurozone and the wider EU
is a vital point for senior figures in the
government, including George Osborne,
chancellor of the exchequer. It is also a
big concern for British business leaders.
Their worry is that the 19 euro coun-
tries could create a caucus and impose
their wishes on the 28-country single
market. Euro members can do so since
voting rules introduced last year gave
them a “qualified majority” in the Coun-
cil of Ministers, the EU’s most important
decision-making body. The City of Lon-
don is of particular British concern:
countries that know little about banking
— or which seek to favour their own
financial centres — could vote for rules
that harm its competitiveness.
So the UK wants “safeguards” for the
single market. Its problem is that not
many EU governments are sympa-
thetic. In Berlin, the capital that matters
most, few figures other than Wolfgang
Schäuble, finance minister, appreciate
British concerns. Germans officials
argue that eurozone countries do not
operate as a caucus — because they sel-
dom agree on economic policy. The UK
The City is of particular
concern — other countries
could vote for rules that
harm its competitiveness
responds that, as the eurozone inte-
grates, the risk is growing ever greater.
When the EU drew up rules on bank-
ing supervision in 2012, it established
“double majority voting”: decisions
require a majority of both euro and non-
euro countries. But the Germans insist
this should not apply in other areas,
since the system would — as more EU
countries joined the euro — evolve into a
British veto. Many Germans suspect the
safeguard Mr Cameron really wants is a
veto for the City on financial rules. In
fact, he will not ask for that. But German
fears are fuelled by memories of the
debacle of December 2011: Mr Cameron
said he would not sign the “fiscal com-
pact” that Germany wanted without an
agreement to change some voting rules
affecting the City; the Germans blocked
the changes so he did not sign.
The recent furore over the European
Financial Stability Mechanism has rein-
forced British worries. The eurozone
wanted this fund, to which Britain has
contributed, to make an urgent bridging
loan to Greece — despite an earlier Euro-
pean Council decision that it should not
be used for eurozone bailouts. The EU
can decide to use the fund by qualified
majority vote. Knowing that it could not
veto the loan, the UK voted in favour, in
return for guarantees against potential
losses. To British officials, this is a clear
example of a eurozone caucus: in a cri-
sis, its members will put the currency’s
needs ahead of legal niceties or the
interests of those that do not belong to
the euro.
Mr Osborne will press hard for safe-
guards. What could he ask for that
might be acceptable to other govern-
ments and EU institutions? Perhaps the
promise of a treaty article stating noth-
ing done by the eurozone may damage
the single market. The non-euro nations
could gain the right to observe meetings
of eurozone ministers. They could also
be allowed to press an “emergency
brake”: if one of them thought a euro-
zone decision would damage the mar-
ket, the decision would be postponed
for, say, a year, while the European
Council of leaders reviewed it.
The UK government has not yet con-
vinced many of its partners that its con-
cerns about the relationship between
the euro and the single market are justi-
fied. It will need to do a better job if it
wants to win credible safeguards. Other-
wise British voters may conclude the EU
is not driven by the interests of all its
members, but by those of the eurozone.
The writer is director of the Centre for
European Reform
10
Fighting talk on winning new viewers
WORKING LIVES
Emma
Jacobs
Fans’ habits are changing,
says boxing promoter
Frank Warren, and
he wants matches to
reach a wider audience
B
oxing is “an anxious busi-
ness” so there is “no use get-
ting anxious about it”. This is
the verdict of Frank Warren,
the boxing promoter and
manager who has looked after most of
the big names in British boxing:
“Prince” Naseem Hamed, Nigel Benn
and Ricky Hatton. “You can build a
fighter who becomes a real star and one
punch can change that.”
If Mr Warren, immaculately dressed
in a blue suit, seems zen about such vol-
atility, the 63-year-old has been through
worse: surviving a shooting as well as
huge business setbacks. Interviewer-
turned-friend Lynn Barber has written
of him: “I can’t think of anyone who has
had such high highs and low lows,
including disasters that would have
sunk anyone with less determination.”
Today, we are sitting on the veranda of
the Goring hotel in the high-end neigh-
bourhood of Belgravia, central London,
with his 28-year-old son, George (the
fourth of his six children). The pair are
outlining their plans for BoxNation, the
boxing television channel, launched in
2011, which is available on TV in UK
and globally online and through mobile
phone apps. It creates and broadcasts
boxing content, including live and
A yacht rental start-up ventures beyond Greek headwinds
Incrediblue views vessels
as underused assets,
writes Snezana Curcic
A disastrous sailing holiday around the
Aegean Islands three years ago was a
turning point for Greek entrepreneur
Antonios Fiorakis. He and his friends
ended up on a smaller catamaran than
they had agreed to hire and were left
buffeted by challenging summer winds,
with inadequate guidance.
Mr Fiorakis reasoned that he could
do a better job as a middleman and this
impulse eventually led to the creation
of Incrediblue, an online marketplace
connecting yacht owners with those
looking to charter a vessel.
The business, one of a surprising
number of start-ups to have battled
through the Hellenic economic mael-
strom, has echoes of “sharing econ-
omy” pioneers Airbnb and Uber.
Mr Fiorakis certainly sees yachts as
underused resources. “Take a stroll
around any marina and you’ll see they
are packed with boats that always seem
to be docked. They are like these won-
archived footage, and sells the rights. It
promotes and manages a stable of more
than 40 boxers, overseen by Mr War-
ren’s Queensberry Promotions, provid-
ing material to screen in programmes.
George is admiring but not deferen-
tial. There is no one, he says, that can
guide a boxer’s career better than his
dad. “The fundamental core of our busi-
ness has always got to be about the box-
ers . . . Our customers want to see box-
ers win world titles.”
The father and son team insist this
year’s Mayweather-Pacquiao fight
proved the global audience for boxing,
despite the fact that many fans were let
down by the fight itself. “It was always
about two stars,” says Mr Warren.
Fans view content in different ways
today, they say, for example, on mobile
phones rather than televisions. “Things
have changed so much,” says Mr War-
ren. “Netflix has crashed down the
doors of how people consume and watch
movies; iTunes completely blasted the
music business apart but got to a bigger
audience. That’s where we need to get
to.” They are looking at all kinds of dis-
tribution, and are interested in Spotify’s
music streaming model, although they
decline to spell out how this might work.
BoxNation lost a bidding war for
the rights to screen the Mayweather-
Pacquiao fight in the UK, that they
hoped would boost subscriptions. The
winner, Sky Sports charged up to £24.95
to view the fight.
“Who’s to say that you need to charge
£10 or £15 or £20 [to view a fight]. Why
‘Who’s to say that
you need to charge
£10 [to view a fight].
Why can’t you
charge nothing?’
derful toys but very time-consuming
and expensive to run and maintain.”
The portal allows users to choose a
holiday or charter a boat based on
price, location, availability and user
reviews. A skipper is always included.
Fees range from €50 to €1,000 per
person per day depending on the craft.
Mr Fiorakis says the company under-
cuts established players on commis-
sion, charging 15 per cent rather than
up to 40 per cent. Boat owners can list
their vessels after emailing their owner-
ship documentation. They have a
chance to do business directly with a
broad range of customers as opposed to
only experienced sailors.
So far, the portal has more than 2,000
yachts, catamarans and motor boats
listed and moored across the Mediter-
ranean, in Greece, Turkey, Croatia and
Spain. The company is looking to
expand into Italy and Montenegro.
Greece’s well-chronicled economic
crisis has seen the demise of many busi-
nesses, a sharp rise in unemployment
and an inevitable brain drain.
Against this grim background several
hundred start-up companies have
emerged in the country as their
★ FINANCIAL TIMES
BUSINESS LIFE
can’t you charge $1?” asks George. Why
charge anything at all, I ask? George
nods, adding: “Why can’t you charge
nothing and do advertising?”
This is fighting talk. In the last finan-
cial year, BoxNation, which has 120,000
regular subscribers, made a loss, despite
revenues of £15.6m. This, they say, was
primarily due to investing in technol-
ogy. It is also the reason that they
decided not to press ahead with a float,
explored in 2013. Gareth Jones, the dep-
uty chairman, speaking by telephone,
says: “It was too early.” Expansion, they
say, is in the emerging markets, particu-
larly eastern Europe and Asia, both for
talent and audiences.
Mr Warren never wanted his children
to follow him into boxing. (His son,
Francis, also works for the business.)
“No, absolutely not, not my area, not
into boxing, I really didn’t . . . I wanted
my kids to do something else but they’re
boxing nuts.”
A great deal of Mr Warren’s decision-
making, he says, is based on “gut feel-
ing”. So too with discovering boxing tal-
ent. “I feel that person’s got something
about them . . . You’ve got to look at
what they’re not good at and what needs
to be done, getting the right team
around them . . . making the right move
at the right time.”
The son of a bookmaker and house-
wife, Mr Warren left his grammar
school, in Islington, north London, at
the age of 15. “I did very well at
school . . . then I went off in
a different direc-
tion . . . I lost inter-
est.” One of his first
jobs was at a solici-
tor. “I worked there
for about a month.
It absolutely did my
head in . . . I just felt like I was
enclosed.” After a stint at Smithfields
meat market he worked for himself.
My questions about his move into a
boxing career start off on the wrong
founders, Mr Fiorakis among them,
ventured that a crisis of such magnitude
could in fact create opportunities for
ideas to develop.
Like-minded Greek venture capital
firms have offered help. One is the pri-
vate Athens-based Jeremie Openfund
II, which has invested in Incrediblue,
and other companies focusing on soft-
ware and the web.
Aristos Doxiadis, a partner in the
fund, explains that many Greeks have
been forced to move away from the
traditional way of looking for safe
Taking the jobs in the public sector or family busi-
plunge in spite ness. Opportunities instead exist in
of the crisis fast-moving and changeable economic
Like father, like foot when I ask if it was right that he
son: George, 28, fixed his first fight for his second cousin.
followed Frank’s “Didn’t fix it,” says Mr Warren,
lead into the appalled. I explain I meant organising
business, and
below, the boxer
rather than rigging. “We’re a little bit
sensitive to that one,” he laughs. It leads
Emmanuel on to my next question: is boxing a
‘Manny’ murky business? “It’s much cleaner
Pacquiao than Fifa.” Most things are, I offer.
Charlie Bibby
His reply is that boxing is cleaner than
sports including football, cricket,
horseracing, athletics and cycling. He
clarifies: “Everything’s so open to the
media, if there’s anything murky or
crooked in boxing, certainly in this
country, it would be grabbed.”
When he decided to make a go of box-
ing, he became determined to give it
everything he had. “Sometimes I just
put the blinkers on.” This has some-
times been to the detriment of his per-
sonal life. “It’s not a nine-to-five job.”
The most dramatic personal event
was when Mr Warren was shot at close
range by a masked gunman in 1989.
Terry Marsh, one of his former boxers,
was prosecuted but later acquitted. The
overriding feeling was anger. “It didn’t
wreck my confidence. I was angry, very.
I was angry that I got shot.”
It hit his business. A deal to raise
funds for the London Arena in Dock-
lands — in which he held a 70 per cent
stake — fell apart. Banks, he says, did
not want to do business with a man who
had been shot. The east London venue
later went into administration. It took a
long time to recover financially, he says.
Mr Warren has a reputation for issu-
ing writs against journalists. Why does
he do that?
“When I was a kid I would never be
frightened of anybody, I would never let
anybody bully me and if they did I
would react to it.” So too with news-
papers. “If I do something wrong I’m
accountable for it.”
emma.jacobs@ft.com
Twitter: @emmavj
conditions where businesses are able to
quickly adapt their models. “The shock
and depth of the crisis has led to the
total collapse of the internal market in
Greece — meaning the only viable
option is to go international, especially
with digital goods and services,” he says.
Incrediblue is now a UK-registered
enterprise, with 17 mostly Greek
employees in total. It runs its business,
customer service and development
divisions from Greece, while marketing
and sales are driven from London.
According to market researcher
Future Market Insights, last year the
global yacht charter market was valued
at $35bn and is expected to grow to
$51bn by 2020.
Mr Fiorakis says the market is clut-
tered and competition is fierce. His
company has a long way to go but is
trying hard to make a mark with its dif-
ferent business model focusing on skip-
pers as well as boats.
“We aim to match the right local skip-
per to a particular party boat. If you are
a group of young people in their twen-
ties we won’t assign a skipper in their
fifties, otherwise it will be like going on
a holiday with your parents,” he says.
Personal technology
Windows 10
Microsoft goes back to basics
with its new operating system
RICHARD WATERS
It feels a little disconcerting
when your laptop wants to
get personal and tries to
anticipate your needs.
Vaguely presumptuous
even, in the manner of a
slightly overattentive
neighbour who stops just
short of intrusiveness.
There was the moment with
the new Windows 10
operating system, for
instance, when I hit the
wrong key and a box
popped up with an ethereal,
rotating blue disk and the
words: “Need anything,
Richard? Tell me to go
ahead and do something.”
Then there are the
prompts to download apps
from a new Windows app
store, and the smartphone-
like notifications that pop in
from the right side of the
screen. Twice the machine
dug up details of an old
Microsoft email account it
was eager for me to update.
Engagingly attentive
But if Windows 10 risks
being creepy, even vaguely
sinister, the feeling passes.
This is a piece of software
that wants to have a deeper
relationship with you than
the PC you’re used to. After
living with it for several
days, the attentiveness
becomes engaging.
It is also a return to basics.
With Windows 10, Microsoft
has stepped back from its
touchscreen-centric
predecessor, dubbed 8 (it
seems 9 fell through the
cracks). The result is a PC
operating system that is
designed to be, first and
foremost, fast, elegant and
efficient. A rapid boot time
and a new browser that has
the clean design and speed
to match browsers from
Google and Apple are
among the features that
improve the experience.
Three years ago,
Microsoft’s first attempt at
marrying touchscreen
tablets with the PC led
Apple’s chief executive Tim
Cook to observe that, just
because you could combine
a fridge and a toaster in one
appliance, it didn’t mean you
should. Windows 8 was a
step too far for PC users,
who found its unfamiliar grid
of coloured tiles off-putting.
It would be interesting to
hear what he has to say now.
Useful features
Windows keeps elements
from the smartphone and
tablet world — the app
store, notifications and large
coloured tiles that act as
icons — but integrates them
much more smoothly into
the familiar PC experience.
There are discordant
notes, certainly: switch
between a PC screen with
multiple windows open, and
“tablet mode” with its more
basic single view of an app,
and it takes a moment to
work out what happened to
all the other things you were
working on. Stretching a
single operating system to
cover all devices is bound to
throw up moments like this.
But at least on the device
Opening Windows: New
system feels coherent
Friday 31 July 2015
I tested — a laptop with a
touchscreen — the product
felt thoroughly coherent.
The focal point of the new
Windows is the start menu
— what you see when you
click the Windows icon at
the bottom left of the
screen. Microsoft makes
much more use of this real
estate, letting users expand
it with Windows 8-style tiles
and turning it into a shop
window for the app store.
You’ll find yourself starting
most tasks here rather than
on the desktop, which
becomes dead space.
A search box activates
Cortana, the “virtual
assistant” represented by
the spinning blue disc. Or
you can click on a
microphone icon and speak
your instructions: in my
tests the voice recognition
was surprisingly good.
Cortana feeds you news and
other information and tries
to learn what you’re
interested in — and she is
always ready with a
suggestion of what to ask.
It’s tempting to think of
Clippy, the annoying paper
clip helper that used to
appear in Office. But besides
a better design and more
engaging “personality”,
Cortana is far more versatile.
Among other things, you
can issue voice instructions
A new browser
has the clean
design and
speed to
match others
to Cortana to give you
reminders. She can also
perform voice searches
using Microsoft’s Bing and
start an email in Microsoft’s
email service.
Broadening the appeal
This is all fine but it does
raise one important
question: what if you don’t
want to live in Microsoft’s
universe? Windows 10 can
feel like a conduit for the
company’s services, which
include its integration with
Xbox Live and the OneDrive
cloud storage service. You
don’t need to be all-in on
Microsoft services to get a
lot out of Windows 10, but it
enhances the experience.
In theory, others could
produce apps with the
ability to integrate with
Cortana. But will they, and
will many app makers even
put their software in the new
Windows app store?
If they turn a cold
shoulder, as they did with
the Windows phone store
before, Windows 10 will miss
much of its potential
consumer appeal.
Verdict
These things are outside
Microsoft’s control. But at
least, in Windows 10, it has
come up with an appropriate
synthesis of the old, in the
form of the PC, and the new,
in the form of tablets and
smartphones.
Windows 7 and 8
customers can upgrade free
of charge starting this week.
Microsoft has said it will
stagger the upgrades to
make sure the process goes
smoothly. To get the most
out of the software, though,
requires a touchscreen,
which for many will mean
buying a new machine —
and PC makers still pay
Microsoft for the software.
Friday 31 July 2015 ★ FINANCIAL TIMES 11

ARTS

Fantastic nonsense of a mission implausible C L A S S I CA L M U S I C

BBC National Orchestra of Wales

BBC Proms, Royal Albert Hall, London
aaaee
FILM Richard Fairman

Nigel It is said that as many as 50m children in

China are learning the piano, each hop-
Andrews ing to follow Lang Lang on the road to
glory.Composersandconductorsarenot
so plentiful, and for them the path to rec-
ognition in the west may be more diffi-

T
oday is the day the IMF’s
luck runs out,” says some-
one in Mission: Impossible
— Rogue Nation. Sounds
like a case for the Financial
Times. But only those estranged from
Planet Tinseltown will think it’s Chris-
tine Lagarde in crisis rather than Ethan
Hunt, alias Tom Cruise. In the block-
buster summer’s first major raid on our
wits and wallets — sequel codename
“MI5” (and the British connotation
proves apt) — the Impossible Missions
Force puts its lives on the line to combat
The Syndicate, a group of global agents/
spies gone terrorist.
The Syndicate’s present profile: world-
domination nutjobs putting out a con-
tract on, among others, the Austrian
chancellor and British prime minister.
Team Cruise starts its operation, accord-
ingly, by storming the Vienna Opera
House during a VIP performance of
Turandot. “None shall sleep,” sings the
tenor and he is on the nose. Writer-
director Christopher McQuarrie (who
scripted The Usual Suspects) has caught
Brian De Palma Disease: a form of cine-
matic ADHD in which nothing stands
still, madness is licensed, and action/
suspense showdowns are screwed to the
screaming orgigglingpoint.
After Vienna we get a car and motor-
cycle chase through downtown Casa-
blanca; high-wire escape ballets between
skyscrapers; and fog, murder and red
telephone boxes in a London so
headlong-retro we expect Jack the
Ripper to appear. Add dialogue so
Duchamp-surreal it sounds like an
Exquisite Corpse game of wordplay. “Sir,
Ethan Hunt is the living manifestation of
destiny.” (What does that mean? Should
we,need wecare?)
It’s all fantastic nonsense. If you
stepped back, you might see the film and
its story plausibility collapse like a
Immersive: Tom Cruise palace of cards. McQuarrie’s trick is to
in ‘Mission: Impossible — stopyousteppingback.Inthissurround-
Rogue Nation’. Below sensation world you might step into a
right: ‘Iris’ is a gun, a bomb, an oubliette or a parallel
documentary portrait of dimension. For the confessional record
New York fashion guru I spent the first half hour wearing
Iris Apfel 3D glasses (available on a foyer stand)
since I thought the film was in 3D as
well as Imax. It isn’t. But I didn’t notice
until I glanced round belatedly at un-
spectacled colleagues. That’s how
immersive MIRN is. You believe it’s all
round you and all over you even when,
technically,itisn’t.
A classic comes to life again, restored
Mission: Impossible — and re-scored, in Dziga Vertov’s Man
Rogue Nation with a Movie Camera. The 1929 Soviet
Christopher McQuarrie film recently voted best documentary of
AAAAE alltime(inBritishfilmperiodicalSight&
Sound) isn’t quite a documentary at all.
Man with a Movie Camera It’s a firework show in a moviemaker’s
Dziga Vertov mind: a symphonic montage of a “day in
AAAAA the life a nation”, across three cities, that
bursts, crackles, fizzes and could take
Iris your eye out (you almost feel) if you
Albert Maysles don’tdodgeandweave.
AAEEE A tripod-wielding camera buff in
boots and riding breeches — proper togs
for an auteur back then — is our halluci-
natory creative Everyman. Trick effects
giantise him atop a roof or miniaturise
him in a bubbling glass of beer. He
mounts a speeding truck to hand-crank
film of joyriders in a car. He scales cranes
or towers. He vanishes altogether, much
of the time, to leave the screen to his
feveredkaleidoscopes.
If you think Inception invented the
bent-double cityscape, think again. If
you think Jaws invented the teeming,
telephoto-shimmered holiday beach-
scape, re-think again. Also here: facto-
ries, taverns, picture theatres, none stay-
ing still for long before disbursing some
secret, mischievous visual reality. Multi-
ple exposure and fast cutting turn rush-
hour traffic into a poetic pandemonium.
And sometimes the film slows to twirl
disparate facets like a magic goblet,
flashing successive pictures — a shop
window, a face, a gloved hand, a manne-
quin — to tease us with the richer truths
or constructions that can come, the film-
makerseemstosay,fromourputtingtwo
andtwotogethertomakefour.
Iris, for punitive contrast, is a
documentary that seems never to end
and should probably never have been
begun. The late filmmaker Albert Mays-
les, a name inscribed in legend (Gimme
Shelter) and lavished with peer-approval
love bites (“the best American camera-
man”, J-L Godard), completed before his
recentdeaththisportraitoftheeccentric
NewYorkfashionguruIrisApfel.
Hers was a piquant life: boutique
owner, interior decor adviser to the
White House. But in her nineties Iris —
more briskly and beatifically caught in
the 2010 documentary Bill Cunningham
New York — has run out of fresh
things to say and do. The Iris outfits,
combining haute couture labels
with clearance-sale clobber (and
beads, beads, beads), still
impress with their bunged-
together elan. The Iris output,
a verbal voguing of drawling
“wisdoms” and waspish put-
downs, is ready to wear in a
whole different sense:
wearing our patience and
politeness after 18 minutes,
nevermind80.
cult,buttherearesignsofprogress.
Last year at the Proms Chinese com-
poser Qigang Chen’s music made its bow
and he is back this year, in the company
of the BBC National Orchestra of Wales
and Chineseconductor,XianZhang.
In the Royal Albert Hall a hush
descended over Chen’s quietly rapturous
Iris dévoilée. It had to — anything less and
the spell conjured by the gently wafting
breeze of sounds he creates would be
broken. Like so many composers from
the east, Chen was seduced early on by
French composers such as Debussy and
Ravel and moved to Paris to study with
Messiaen. His intensely sensitive music
carriesonwheretheyleftoff.
Iris dévoilée forms a kind of rainbow
bridge between its suggestive Chinese
poetry, intoned in the style of Peking
Opera, and the pastel-shaded world of
the French impressionists. Meng
Meng, costumed like the Princess
Turandot, chanted the brief Chinese
texts. Two Finnish sopranos, Anu Komsi
and Piia Komsi, soared in wordless radi-
ance. The orchestra made seductive
noises, overlaid by the very delicate
strumming and bowing of the Chinese
pipa, zheng and erhu. Time passed; 40
minutes to be exact. Eternal beauty
demandspatience.
On either side Zhang and the BBC
National Orchestra of Wales offered the
contrast of red-blooded performances
of Russian symphonies. Prokofiev’s
“Classical” Symphony was steadier,
tougher in character than usual. Rach-
maninov’s Symphony No. 2 boasted well
drilled playing and outgoing certainty of
vision, rather than subtle colours and
melancholy. It was a generously
planned Prom, well attended, not
withoutitsrewards.
BBC Proms run to Septem-
ber 12, bbc.co.uk/proms

Radicalism — but in cautious doses

A few masterpieces stand out grey. The beams of energy radiating
from his features foreshadow the short-
from the crowd in a New York lived Futurist spin-off that he and Gon-
show of German and Russian charova dubbed Rayonism.
The Neue Galerie displays the Rus-
modernists. ByAriella Budick sians alongside figurative paintings by
their German contemporaries, espe-
cially members of the expressionist

K
itsch and radiance wrangle at
the oddball exhibition of Ger-
man and Russian modernism
at New York’s Neue Galerie.
This agglomeration of medi-
ocrity and downright dregs, punctuated
by the occasional masterpiece, is an
unusual outing for a museum that usu-
ally hews to stellar standards. But if
you’re up for a spirited mishmash of the
bold and the ugly, head over to see Rus-
sian Modernism: Cross-Currents of German
and Russian Art, 1907-1917.
Before they discovered what revolu-
tion was really like, Russian artists of
the avant-garde swooned over France,
the source of all things radical. They
bathed their souls in the perfumes of
Provence, incorporating Cézanne’s
trowel-like strokes and earth-toned pas-
sage. Petr Konchalovsky’s self-portrait
of 1912 could almost be one of the mas-
ter’s, his beige jacket breaking up into
blotches, skin merging into a claylike
beard. Ilya Mashkov’s still-lifes eerily
summon Cézanne’s apples, pears and
pitchers to a fruity seance.
For those familiar with the fertile but
doomed period of pre-Soviet modern-
ism, the term suggests a slideshow of
abstractions: the squares of Malevich, El
Lissitzky’s narrative geometries or Tat-
lin’s spiralling monument to the Third
International. But this exhibition taps a
much more minor tributary: figurative
artists who dispensed their radicalism
in cautious doses, and who have accord-
ingly been largely ignored.
The bulk of the works — 39 paintings
— come from the vaults of Petr Aven, a
collector who, in his pursuit of this
strange subspeciality, has amassed
Die Brücke: Max Pechstein’s ‘Woman
with Red Fan’ (1910)— Neue Galerie New York
about 500 examples of the movement
that time forgot. It would be lovely to
say that his collection represents a
hoard of rediscovered masterpieces, but
the truth is that Boris Grigoriev’s “Café
Chantant” (1913) is just too, too Tou-
louse-Lautrec; Konchalovsky’s pseudo-
post-Impressionist “Still Life: Checkers”
(1916) gets stuck in its murky, muddy
palette. Altogether, this philo-French
vein of Russian art comes off as retro-
grade and derivative.
There are a couple of notable excep-
tions. Natalia Goncharova and Mikhail
Larionov, who were partners in love and
art, transcended the typical composi-
tions of their peers. In her early work,
Goncharova inflected a Fauvist lan-
guage with hints of primitive art, ortho-
dox icons, esoteric religion and visions
of the primeval farmer. Her “Pond”
(1908-09) whisks the rainbow-hued
exoticism of Gauguin together with her
homeland’s folk heritage, conflating
Tahiti with Novgorod. Larionov also
mines the Fauves for his 1912 self-por-
trait, smudging his face with blue and
Derivative: Petr
Konchalovsky’s
‘Still Life:
Checkers’
(1916) — Petr Aven
Collection, Artists Rights
Society
group Die Brücke. But it’s a rigged
match, because most of the Brücke
paintings come from its own stellar col-
lection or from the private holdings of its
co-founder, Ronald Lauder. In this con-
text, even lesser German lights such as
Erich Heckel, Max Pechstein and Karl
Schmidt-Rottluff look like brilliant ava-
tars of the future. In their search for
fresh conventions, the young Germans
turned to African carvings and wood-
cuts, fell under the sway of Van Gogh and
Gauguin, and added to this French colo-
nial brew a soupçon of the Norwegian
Munch. They clutched at crudeness with
religious fervour, mistaking their rejec-
tion of harmony for emotional truth.
Heckel’s nude portrait of the group’s
jaundiced muse, Fränzi, might seem
intolerably creepy. The little girl was 10
when she was anointed the movement’s
mascot and here she looks like an under-
age Olympia, lying back on her chaise
with a doll in place of the original’s black
cat. And yet Heckel’s rude comment on
Manet glows with obscene authenticity
— at least next to Aristarkh Lentulov’s
horrific redo of “Le déjeuner sur
l’herbe”, with its doughy nudes lounging
alongside the nattily dressed artist.
The international showdown is espe-
cially flattering to Ludwig Kirchner, the
leader of the German pack. He’s repre-
sented by a female nude so original she
has no clear point of comparison. Bony
and stiff, with ringed eyes and an elabo-
rate feathered hat, she perches awk-
wardly at the edge of a mattress, a single
red nipple dangling like a street light.
Besides Kirchner, the only artists who
emerge triumphant are Wassily Kandin-
sky and his partner Gabriele Münter,
whose exquisite townscapes of Murnau,
Germany, are the show’s true highlights.
Togethertheyevolvedaradiantstylethat
bridged the real and imagined. His work
glows;hersdazzleswithheavenlyhues.
Kandinsky has received the lions’
share of the credit for their achingly
beautiful aesthetic, but that is because
he claimed it. As Münter pointed out, he
“had to express his ideas in words, so he
constantly formulated new theories of
art”. She never leapt into the vortex of
abstraction, but remained content with
the figurative modernism that this show
champions. The best that could come of
the Neue Galerie’s efforts would be the
full-blown retrospective she deserves.

To August 24, neuegalerie.org

12 ★★ FINANCIAL TIMES Friday 31 July 2015

The hard bit

Major oil companies’ refining and marketing divisions have been more
profitable in recent quarters because rising demand for transport fuel and
lower crude oil prices have boosted refining margins. Poor communication
of cost-cutting plans had made Shell cheaper than its competitors

Twitter: @FTLex Email: lex@ft.com Indicative European refining margin 2016 valuation
$ per barrel Enterprise value/earnings ratio*

Nintendo: called an Inkling. For investors, the 6 Procter & Gamble:

get splatting
Critics of Nintendo’s console business
have clearly not played Splatoon. The
Japanese games maker’s virtual
paintball shoot-em-up, in which the
aim is to recapture the Zapfish from
the evil Octarians terrorising Inkopolis,
has been a blockbuster. After selling
1.6m copies in under three months,
Splatoon pushed Nintendo into profit
last quarter, against expectations:
analysts had forecast losses. Yesterday
the shares rose 8 per cent due to those
numbers. Take that, Octarians.
The success of Splatoon shows that
Nintendo, the company that gave the
world Mario and Donkey Kong, is still
good at producing hit games. Even its
disappointing hardware — unit sales of
the Wii U fell nearly one-tenth year on
year — did not dent the game’s appeal.
Nintendo had been on the up even
before Splatoon. In mid-March this
year, the company said it had
partnered Japanese software company
DeNA to develop its games for
smartphones — the first time in
Nintendo’s history that its games will
be sold on phones. Since then, the
shares have returned 56 per cent to the
4 per cent Topix return.
Yet the shares do not reflect all the
growth to come: the new games will be
released towards the end of this year.
Analysts have high hopes. Earnings per
share forecasts for the year to March
2017 (likely to be the first full year of
contribution from smartphone games)
have more than doubled since the
announcement. That looks attainable,
if Nintendo and DeNA can make good
games.
King.com, the Candy Crush
developer, made net profits of $800m
in the 12 months to March. Over the 12
months to June (including the recent
good quarter), the more established
Nintendo made $630m.
The upside from smartphones may
appear to be in the price: Nintendo
trades on a multiple of 36 times
forecast earnings for the year ending
March 2017. King trades on eight times
— the market expects no growth. But if
Nintendo has learnt its lesson from the
underwhelming Wii U there is
potential for more earnings upside,
which would push the multiple down.
Players in Splatoon can take control
of their own customisable character,
name is apt. The success of one game is
a small but timely reminder of
Nintendo’s strengths. If the company
can show signs of turning round its
weaknesses, it can repaint its future.
Nokia Alcatel:
groomzilla
The most amazing day of your life. Or
possibly just the most expensive. The
plans for Nokia and Alcatel-Lucent to
head down the aisle are proceeding
quicker than expected. That should
surprise no one. Neither company is
exactly a blushing young bride — both
have insight and scars from their many
prior combinations.
To make sure the union works, both
companies have been clear it is a
takeover, not a merger of equals.
Nokia’s chief Rajeev Suri is in charge
and will lead the combined company.
Alcatel-Lucent chief Michel Combes
will step down on September 1.
While this is not a shotgun wedding,
there is time pressure. Mr Suri is keen
to create a global competitor to
challenge Huawei and Ericsson before
the next wave of mobile investment —
building 5G networks — begins.
Combined, Nokia and Alcatel-Lucent
would have had €26bn of revenues last
year, compared with €24bn and €43bn
for Ericsson and Huawei, respectively.
The plans are clipping along nicely.
The big day is still expected early next
year. Regulatory approval has been
received in nine markets, including
both Europe and the US. Both
companies reported second-quarter
results yesterday that beat expectations
and alleviated worries after Nokia’s
first-quarter network margins missed
expectations by 6 percentage points.
Shares in both companies rose.
There are still some key people to
convince: regulators in Japan, Taiwan,
India and China. The last two are main
growth markets and approval in China
may not be straightforward. Once
combined, Nokia’s market share plus
its stake in Alcatel-Shanghai Bell would
give it more than double the 10 per
cent market share limit that Chinese
officials have for foreign companies.
But Mr Suri is highly regarded in China
and few expect this issue to be a deal
breaker.
The danger is more that the longer
Shell
4.3
4 increase one’s driving distance off the
2 ruse. Yesterday it announced earnings
0
5.0
2009 10 11 12 13 14 15
* Earnings before interest, taxes, depreciation,
FT graphic Sources: Société Générale; Credit Suisse amortisation and exploration charges
Promises are like babies: easy to each year since 2010. But the good
make, hard to deliver. That may be news for earnings ends there.
why Royal Dutch Shell’s The upstream business in the
management had avoided offering Americas lost money for the second
too many pledges on cost cutting consecutive quarter and refining
while closing its acquisition of BG margins will probably fall back in the
Group. But it left the market second half, especially as US based
confused; Shell’s share price has refineries have increased their exports
done badly since the bid. So in of diesel to Europe. Shell knows it
yesterday’s second-quarter results, cannot count on the downstream
management abandoned its earnings bounty lasting much longer —
reticence and nailed its colours to another reason for the volte face on
the mast. cost guidance.
It was a good moment to do so. Shell will cut jobs (including
Shell’s earnings, at $3.8bn, were expensive contractors) and take a $5bn
above expectations. European chunk out of its investment
refining margins have been at their programme. Pro forma capital
strongest in several years. Refining spending will drop to $35bn in 2016.
and chemicals profits in the first half Most of these adjustments will come at
surpassed the full-year average of Shell, reflecting a desire to clarify that
he is distracted by the minutiae of costs fell sharply to £459m, RBS has set
corporate nuptials, the more time aside £4.6bn of provisions to cover
rivals have to focus on taking business. issues including an impending fine for
mis-selling US subprime mortgage
securities. Uncertainty on those is one
Royal Bank of Scotland: reason RBS trades at just 0.8 times
tangible book value.
step by step All the more reason for chief
executive Ross McEwan to speed
Think of it as a downpayment. Royal balance sheet shrinkage and cut costs.
Bank of Scotland’s unexpected £293m So far so good: by whittling down RBS’s
second-quarter profit — up 27 per cent corporate and investment bank and its
from a year ago — triggered a brief bad bank, total risk-weighted assets
share price pop yesterday. Lower bad have fallen to £326bn, from £392bn a
loan and misconduct charges, and a year ago. The deconsolidation of
fillip from its Citizens bank in the US, Citizens, once sold, will shave off more.
were to thank for the improvement. And, if annualised, cost savings should
But the state-controlled UK lender hit his full-year target. But it costs
faces a number of hurdles before money to save money: the £1.1bn
profits can be shared with investors. restructuring charge, mostly at the
Although misconduct and litigation corporate and investment bank, was
Eni
4.7
BP
Total
5.8
management’s plans are not only for
the BG deal but apply more widely.
They are also a clear recognition that
the current oil price weakness could
last several years; management had
refrained from acknowledging that
but have clearly reconsidered.
The change in tack is welcome, as
is a strong commitment to the
dividend. This should mollify
shareholders, even if cash flow post
capital spending (and asset sales) still
does not cover the payout.
Much of Shell’s recent
underperformance versus peers can
be ascribed to management’s failure
to communicate. The shares now
look cheap. Given yesterday’s change
in tactics, the valuation discount can
now start to close.
more than double the level in the first
quarter. RBS will need a common
equity tier one capital ratio above its
internal 13 per cent hurdle before it
will seek permission to pay dividends
— it does not expect to do so before the
first quarter of 2017. But there is swift
progress on capital: the bank’s ratio
rose sharply in the quarter to 12.3 per
cent. This year’s sale of the remainder
of Citizens will lift it further.
But there is another, more irksome
ratio to fix: the group’s 3 per cent
return on tangible equity. The pace of
RBS’s turnround should embolden the
government to start selling taxpayers’
78 per cent stake in RBS, and with
greater liquidity comes greater
investability. But returns are what
really drives the share price. No
pressure then Mr McEwan.
play it as it lies
In golf there is an old joke about how to
tee: just hit the ball and run backwards.
Procter & Gamble may have just
discovered the corporate version of this
per share for its just-completed fiscal
year of $4.02, a 2 per cent dip from the
previous year. And when sharing its
outlook for the upcoming year, it said
its 2016 EPS would be up mid-single
digits from 2015. But the rub is that the
targeted growth was based on a starting
point not of $4.02 — but several metres
back from the tee, at $3.77.
How so? After a buying spree lasting
decades, P&G is busy shedding 100
brands that it discovered don’t actually
contribute much to profits. Its
remaining portfolio will include
nappies, razors and laundry detergent.
Most recently, it has sold off its
Duracell battery unit to Warren Buffett
and a range of hair and beauty brands
to Coty. The company says, because of
the vagaries of accounting, the beauty
business should be treated as a
discontinued operation. As a result, it
says its core ongoing earning base
should be the lower figure of $3.77.
That was not the only irritant in its
results. The classic investment case for
a company such as this is simplicity
and predictability: an investor pays 20
times earnings for a consumer staples
company whose earnings do not
deviate much during economic cycles.
Strong cash flow is distributed to
shareholders as sizeable dividends.
And while conversion of revenue and
profits into cash flow has historically
been strong, P&G forecast disappoint-
ing 2015 growth in revenue of perhaps
up a couple of percentage points.
That unexciting prognosis prompted
the shares to slide 3 per cent, on top of
a 15 per cent fall since January. A
sometimes fractious call with analysts
showed that patience for a turnround is
beginning to wear thin and that new
chief David Taylor’s honeymoon has
ended before it started. P&G no longer
has any room to run backwards. It is
just going to have to work on its swing.
Lex on the web
For notes on today’s breaking
stories go to www.ft.com/lex

1010 Today’s temperatures

1000 Abu Dhabi Sun 45 113 Madrid Thunder 31 88

79
Amsterdam Fair 19 66 Manila Sun 33 91
Vancouver 81 Athens Sun 36 97 Melbourne Fair 13 55
Winnipeg Atlanta Fair 34 93 Mexico City Fair 26 79
77
7 77
85 LOW Beijing Cloudy 29 84 Miami Thunder 33 91
9 Montreal 8 Belgrade Cloudy 22 72 Montreal Fair 27 81
Tor to Berlin Fair 20 68 Moscow Fair 22 72
HIGH 13 82 Bermuda Fair 30 86 Mumbai Rain 30 86
6 1020 ew York Bogota Drizzle 19 66 Nassau Fair 32 90
98 91
90 C ago Brussels Sun 20 68 New York Sun 33 91
9 Buenos Aires Shower 19 66 Nice Sun 28 82
90 Caracas Fair 32 90 Oslo Fair 18 64
Washington
72 91 Denver 89 90 Chicago Sun 31 88 Paris Fair 24 75
87 93 OW
87 Copenhagen Cloudy 17 63 Prague Fair 22 72
Dallas Fair 36 97 Reykjavik Fair 15 59
HIGH 1 0 2 0
89 Delhi Cloudy 33 91 Rio Sun 28 82
Los 81 84 Dubai Sun 42 108 Rome Sun 30 86
Angeles 94 Dublin Rain 16 61 San Francisco Cloudy 22 72
108
1020 91 Edinburgh Shower 16 61 Seoul Fair 30 86
97 Frankfurt Sun 24 75 Shanghai Sun 35 95
94 Geneva Sun 24 75 Singapore Thunder 30 86
98 Hamburg Fair 17 63 Stockholm Shower 18 64
Houston 91 Helsinki Thunder 19 66 Sydney Sun 17 63
94 Miami Hong Kong Sun 30 86 Taipei Fair 34 93
7
Honolulu Cloudy 33 91 Tel Aviv Sun 34 93
Jakarta Shower 32 90 Tokyo Sun 34 93
Karachi Cloudy 31 88 Toronto Fair 28 82
Lima Cloudy 20 68 Vancouver Sun 26 79
Lisbon Fair 25 77 Vienna Sun 26 79
Forecasts by London Fair 22 72 Warsaw Sun 20 68
Wind speed Los Angeles Sun 27 81 Washington Sun 34 93
in MPH Luxembourg Sun 22 72 Zurich Sun 24 75

ACROSS 4, 22 Highly unlikely it could be

CROSSWORD 1 Perfunctory choice of Simba in the distance (7,2,3)
No. 14,997 Set by GAFF academics (3,5) 6, 15 No way for Navy to demand
5 Bank Arabs use a lot for capital sunshine without first dodging
        (6) storm (5,2,1,5,2,7)

10 Measuring volume of disco 7 Leads a choir rehearsing in D
regularly, putting youngster sharp (5)
  first (5) 8 A rat claims he’s raised the bar
11 Lines indicating air is nearly (8)
gone (4,5) 9 A guess is bad manners (6)
  12 Producing dramatic literary 16 One’s trying to get away by 6 –
openings not unknown (9) pack anti-left-wing circular (9)
13 Event where the winner gets 17 Hide lover’s desire during
  
the most bucks (5) endless provocative dance (8)
14 Mark pens first rate song (6) 19 By far extremes of anarchy lies
 15 See 6 Down chaos (6)
18 Partial lift-off by Armstrong, 20, 21 Using second cue, hit a
  
maybe? (7) terrible long shot (7,6)
 20 Take in old man with tablets 23 Turnaround of character
back to front (6) needed after cricket match
  
22 See 4 Down disgrace (5)
24 Hot IT man’s corrected bug
(5,4)
  25 People start hysterical cries
about election (3,6) Solution 14,996
26 Wore ragged (3,2) % $ / 8 6 7 5 $ ' ( & + , &
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No. 14,845 Set by NEO
        ACROSS DOWN
1 Important Viking one among best 1 Hard maths topic written up to find
friends (5,4) circumference (5)
  6 Socialite with appeal makes left- 2 Love comes in no time, wildly, for
side entry (5) passion (7)
9 Brazilian city as far as we’re 3 Disagreed also with a thousand
concerned ungovernable (7) children (4,5)
  
10 Obscure English knight against 4 Bond gets to a casino and is
European rebuffed (7) beaten (11)
11 Poor nation’s little island in hot 5 Beast summarising Tokyo-London-
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12 Caught flamboyant cardinal in 6 Painter died hungry (5)
Seventh Heaven? (5,4) 7 Discount supermarket name in
  
14 Notice flock encircles houses (3) GB’s upturn with loss on top (7)
15 Alarmist financier reversed into 8 As 007 mission to Spectre might
second vehicle bearing right (11) be? (3-6)
17 German poet’s the writer 13 Dope sheathes weapon in open
   
embracing pub vocalist (11) coat (11)
19 Moggy fur with hole concealed? (3) 14 Soul an unknown factor in some
20 Earl, King and Queen on men? Fearless pilots? (9)
   Hampshire river’s banks (9) 16 Girl having paddle round saw
22 Ambassador in temple finds grain manor demolished (9)
(5) 18 Mistress Gwynne about to be
 
24 Ardent Green must change leader announced in sport (7)
(7) 19 Side issue for Clintons (7)
26 As one’s despicably mean, small 21 Having ducks in horses area
tips for servants materialise (2,5) causes commotion (3-2)
JOTTER PAD 27 Sauce unfortunately knocked over 23 Crime article Financial Times
contains sulphur (5) provides (5)
28 Related martial artist stops at 25 Sick at first, old man here for
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Solution to Saturday’s prize puzzle on Saturday February 14
Solution to yesterday’s prize puzzle on Monday February 16
Winners’ names will be printed in Weekend FT

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Friday 31 July 2015 ★★ 13

Nintendo Shell Nokia Dollar index Two-year US Xetra Dax Brent oil Brazilian real/
Key content Accounting Treasury US dollar
for Netflix’s valuation 8.3% 4.2% 7.53% 0.5% 3bp 0.4% 0.1% 1.4%
MATTHEW GARRAHAN, PAGE 14
Y22,195 £18.39 €6.43 97.49 0.73% 11,257.15 $53.31 R$3.3788

Starwood and IHG discuss link-up Short

View
3 Talks could lead to world’s biggest hotel chain 3 Wyndham also likely to eye US group
talks with Starwood with a view to a Mr Solomons said that IHG’s strategy of dealmaking and property sales,
Elaine
ARASH MASSOUDI AND MALCOLM MOORE
LONDON combination of the businesses”. was to grow organically. He said that the ‘We signed including the launch of a £1bn-plus Moore
JAMES FONTANELLA-KHAN — NEW YORK
Starwood in effect put itself up for sale company had signed deals to manage more deals hotel group in the UK by Lone Star, the
InterContinental Hotels has held early- in April, appointing Lazard to explore a 231 hotels in the first half. US private equity group, this month.
stage talks with Starwood Hotels & “full range” of strategic and financial “There is a lot of noise around consoli- in the first Starwood shares were down 5.4 per One quirk for which the UK is regularly applauded is the
Resorts over a union to create the options. The move came after Frits van dation. If you look back a few years it half than cent to $78.20 by the close in New York, infrequency with which it has to worry about rolling over
world’s largest hotel group, according to Paasschen, Starwood’s former chief was real; now it is effectively organic,” and IHG shares surged 4.6 per cent to national debt.
two people familiar with the discus- executive, quit in February as the com- he said. “We have had extensive organic any time close at £27.43 after the Financial Times The average lifespan of bonds issued by the UK, known
sions. pany struggled to maintain growth. consolidation: we signed more deals in since 2008’ reported the talks. as gilts, is just over 16 years, according to the Debt Manage-
The informal talks were very tenta- Starwood is hoping to decide on a path the first half than any time since 2008, IHG is working with advisers includ- ment Office. Compare that to the US, where the average
tive and Starwood may choose another by the end of the year but offered no we are building new brands and buying Richard ing Bank of America Merrill Lynch on its debt maturity is about 5.5 years, or Germany where it is
suitor or pursue another strategy, both guidance at its second-quarter results up little brands like Kimpton.” Solomons, IHG talks with Starwood, according to one nearly 6.5 years.
people cautioned. yesterday. The hotel industry in the US, UK and person close to situation. So far, so prudent. In a world of bloated government
Starwood may be conducting parallel Richard Solomons, IHG chief execu- Europe is 10-15 per cent above its 2007 Starwood’s market capitalisation is debt, short-termism can be a dangerous habit. Shorter-
talks with other interested parties, one tive, declined to comment about Star- peak in terms of revenue per available $13.8bn, while IHG’s is roughly $9.5bn, term bonds increase the threat that rising interest rates
person added, with candidates likely to wood as he reported a 21.5 per cent rise room, according to analysts at Morgan but Starwood filed plans last month to could have a dramatic impact on the cost of servicing debt.
include US hotel group Wyndham. in first-half pre-tax profits to $458m. Stanley. spin off its vacation timeshare business That is why “locking in” low rates in sovereign debt mar-
IHG said that it was not currently “in Starwood declined to comment. The fizz in the sector has seen a wave into a separate publicly traded business. kets has become a political mantra echoed across Europe,
Asia and the US. This year Mexico issued a rare century-
long bond while Spain and Canada have recently stretched
the maturity of their debt into unprecedented territory
with their debut 50-year bonds.
In the year to date, governments around the world have
Torque show sold $69.4bn of international bonds maturing in 30 years
Amazon snaps up or longer, compared with $62bn in the same period last
year, according to Dealogic.
exiting Top Gear trio But longer-debt profiles do not automatically equal
lower risk. Sweden, which borrows relatively little and has
a gold-plated triple A rating, sells Europe’s highest propor-
Amazon has won the race to sign the tion of short-term debt. Greece, locus of the eurozone debt
departing presenters of BBC’s Top Gear crisis, was granted a relatively long debt maturity by its
TV show, as internet groups continue to creditors before the recent deadlock.
encroach on traditional broadcasters’ There is also a reason that the office in charge of selling
terrain by securing big deals to produce gilts has avoided setting a target for long dated debt in spite
original content, write Matthew of government rhetoric favouring long-term planning.
Garrahan in New York and Murad The UK’s lengthy debt profile is more the product of luck
Ahmed and Henry Mance in London. than prudence, born of the domestic pension industry’s
The world’s largest online retailer said near-insatiable appetite for long-dated assets, which keeps
that it had signed a deal with Jeremy the cost of long-term borrowing cheap. If the cost of long-
Clarkson, James May and Richard term borrowing rose, the argument for a lengthy average
Hammond to present a television series debt maturity profile would change.
that will be premiered next year. Because the same audience does not exist to the same
The move will pit the trio against the extent elsewhere, borrowing over shorter periods is
BBC’s relaunched Top Gear show, led by cheaper. Countries hoping to elongate their debt profiles
Chris Evans, while boosting Amazon’s will need to encourage buyer demand to keep up.
video-streaming service in its battle with
Netflix, which is estimated to have four
times as many subscribers in the UK.
UK government debt
Average maturity (years)
The BBC sacked Mr Clarkson in March
for physically and verbally abusing Top 18
Gear producer Oisin Tymon, leaving the
BBC to reinvent its flagship car show. 16
Amazon will try to tap the hosts’ 14
popularity in countries such as the US The average
and Australia. But some in the industry 12 lifespan of UK
have questioned whether the trio will be sovereign debt is
able to replicate their success, saying 10 16 years, against
that one Top Gear imitator, Fifth Gear, 2004 06 08 10 12 15 5.5 years in the
flopped. The deal is for three series of an US and 6.5 years
as yet untitled show that will be available Source: UK DMO in Germany
only to Amazon Prime subscribers.
elaine.moore@ft.com
Gallo Images/Getty Images

Former US banking regulator Bair

quits Santander board after 18 months
TOM BRAITHWAITE — SAN FRANCISCO would interfere with my responsibilities as the bank’s executive chairman
MARTIN ARNOLD — LONDON
to the college,” Ms Bair wrote in a letter following his death last year.
Sheila Bair, the former US banking to the Systemic Risk Council, a regula- Since taking over last September, Ms
regulator, has resigned from the board tory advocacy group, whose chairman- Botín has appointed a new chief execu-
of Banco Santander, ending a some- ship she is also giving up. tive, replaced the heads of its US opera-
times uncomfortable 18 months at The departure is expected to be tions and hired a new chairman of its UK
Spain’s largest bank. announced by Santander as soon as subsidiary. She also appointed three
Shell cuts spending and today and becomes effective at the end new independent directors to its board.
jobs after plunge in crude Ms Bair, who was head of the Federal of the third quarter, according to people An outspoken critic of big banks, Ms
Deposit Insurance Corporation during familiar with the matter. Santander Bair won both friends and enemies for a
Shell will cut its capital spending the financial crisis, is leaving to concen- declined to comment. tough stance at the FDIC that often saw
20 per cent and axe 6,500 jobs this trate fully on a new role as president of The bank yesterday reported a 17.6 her clash with other regulators, particu-
year as it prepares for a ‘prolonged Washington College in Maryland, per cent rise in second-quarter net larly at the US Treasury.
downturn’ in crude prices by curtailing according to a letter from her, seen by profit to €1.71bn, helped by reduced She was protective of the FDIC’s insur-
projects. It said investment would be the Financial Times. provisions for bad loans in the UK, Spain ance fund and clashed with other
$7bn lower than last year’s level. “Though I have very much enjoyed and Portugal. officials in her desire for more wholesale
Report iPAGE 14 my service on the board of this historic The resignation is the latest in a string change at Citigroup, which was then
Lex iPAGE 12 banking institution, the frequent trips of personnel changes at the bank since close to failure.
to Spain are time-consuming and, I fear, Ana Botín succeeded her father Emilio Santander profits up page 15

Companies / Sectors / People

Companies
Airbnb............................................................10
Airbus’s..........................................................14
Alcatel-Lucent...........................................12
Alibaba...........................................................17
Amazon..........................................................13
Anheuser-Busch InBev...........................1
Apple........................................................14,22
Areva..............................................................16
Audi..............................................................1,22
Avic....................................................................3
BG Group................................................12,16
BMW................................................................16
BP...............................................................16,20
Babcock.........................................................21
Baidu...............................................................17
Blackstone...................................................22
Boeing’s.........................................................14
Bombardier.................................................14
Bunge..............................................................21
BuzzFeed......................................................17
Caterpillar.................................................1,22
Celgene.............................................................1
Centerview Partners................................1
Cisco..................................................................6
Citigroup.......................................................13
Comcast.........................................................17
ConocoPhillips...........................................21
DeNA...............................................................12
Delphi Automotive.................................16
Deutsche Bank..........................................15
EDF..................................................................16
Ericsson.........................................................12
Facebook.............................................6,17,21
Ford..............................................................1,22
Freeport-McMoRan................................22
General Dynamics...................................14
General Motors.........................................16
Goldman Sachs........................................22
Google........................................................6,17
HBO.................................................................14
HellermannTyton...............................16,21
Huawei.....................................................12,14
IBM.....................................................................6
Idemitsu........................................................16
Incrediblue...................................................10
InterContinental Hotels.......................13
JBF Industries...........................................14
JPMorgan.....................................................15
KKR..................................................................14
King.com.......................................................12
Malaysia Airlines.......................................4
Microsoft......................................................10
NBCUniversal.............................................17
Netflix.................................................10,13,14
Nike.................................................................22
Nintendo.......................................................12
Noble Group..............................................20
Nokia..........................................................12,21
Ola....................................................................14
Panmure Gordon.....................................21
Peugeot............................................................1
Procter & Gamble...................................12
Relativity Media.......................................16
Receptos..........................................................1
Renault.............................................................1
Royal Bank of Scotland.................12,15
Royal Dutch Shell..................12,16,20,21
Samsung Electronics.............................14
Santander.....................................................13
Schneider Electric......................................1
Siemens................................................1,21,22
Sky Sports...................................................10
SoftBank.......................................................14
Sony................................................................14
SoulCycle......................................................15
Spotify...........................................................10
Starbucks.....................................................22
Starwood Hotels......................................13
TalkTalk........................................................21
Telstra............................................................17
Tencent.........................................................17
Tiger Global................................................14
Time Warner..............................................14
Tullow Oil.....................................................21
UBS..................................................................15
Uber...........................................................10,14
United Technologies................................1
Vedanta Resources................................21
Volkswagen................................................22
Volvo...............................................................16
Vox Media....................................................17
Warner Brothers......................................14
Whole Foods...............................................21
Xiaomi............................................................14
Yahoo...............................................................6
Sectors
Aerospace & Defence...........................14
Automobiles...............................................16
Banks.........................................3,12,13,15,20
Energy............................................................16
Media.............................................13,14,16,17
Oil & Gas..........................................12,16,20
Personal & Household Goods.........12
Pharmaceuticals..........................................1
Retail...............................................................14
Support Services.....................................10
Technology............................................14,17
Telecoms.......................................................12
Travel & Leisure......................................13
People
Adkerson, Richard..................................22
Antonio Álvarez, José...........................15
Bewkes, Jeff................................................14
Botín, Ana....................................................13
Clark, Kevin.................................................16
Combes, Michel.........................................12
Cook, Tim....................................................22
Cryan, John.................................................15
DeWalt, Michael Lynn..........................22
Fields, Mark................................................22
Jain, Amit.....................................................14
Kaeser, Joe.....................................................1
Klingler, Christian.......................................1
Knoche, Philippe......................................16
Li, Robin........................................................17
McEwan, Ross......................................12,15
Naouri, Jean-Charles.............................14
Plepler, Richard........................................14
Robb, Walter...............................................21
Solomons, Richard..................................13
Stevenson, Ewen......................................15
Suri, Rajeev.................................................12
Tricoire, Jean-Pascal................................1
Van Beurden, Ben...................................16

© The Financial Times Limited 2015 Week 31

14 ★★ FINANCIAL TIMES Friday 31 July 2015

COMPANIES
INSIDE BUSINESS
Technology
MEDIA

Uber to step up gear in $1bn India drive Matthew

US ride-hailing app group
targets growth markets
and escalates local rivalry
JAMES CRABTREE — MUMBAI
Uber is set to plough $1bn into a major
expansion in India, placing its invest-
ment in the country on a par with that in
China and signalling an escalation of its
rivalry with domestic ride-sharing Ola.
In June, it was revealed Uber planned
to spend $1bn in China in 2015 to catch
up with Didi Kuaidi, the market leader
backed by internet groups Alibaba and
Tencent.
At the time, Uber’s Chinese drivers
were making close to 1m daily trips, a far
higher level than most analysts
expected. India’s ride-sharing market is
less developed, but Uber hopes its finan-
cial firepower will enable it to overtake
Ola in the next year.
[monthly] growth . . . and with more
investment in product, hiring, and pay-
ment solutions, we expect to grow at an
even faster rate.”
Uber declined to comment on current
performance in India but industry esti-
mates suggest it offers about 200,000
daily rides.
Ola also declined to comment but
people familiar with the Bangalore-
based group say it operates more than
twice as many daily rides in more than
Garrahan
It has already raised $400m at a valu-
ation of about $2.4bn in April.
One of Ola’s financial backers, who
asked not to be named, said: “It’s obvi-
ously an attempt to intimidate potential
Creativity holds key to
investors in Ola’s next round. But it
won’t work. Ola is going to have plenty
HBO closing sky-high
of money to fight back.”
India’s ride-hailing app market is
growing rapidly, but its two leading
Netflix valuation gulf
‘[This players have seen a series of political
and regulatory setbacks complicate
attempt to

The US ride-hailing app company said
the spending drive would see its service
hit 1m daily fares by March 2016, the
first time it has produced such a target
in India.
Yesterday’s announcement marks the
latest salvo in Uber’s battle to match
fast-growing local competitors in China
and India, as it pours funds into its most
important growth markets.
Amit Jain, president of Uber India, 100 cities.
described the target as “incredibly Much of Uber’s investment is
ambitious”. expected to be spent on expanding the
He said it would be achieved by subsidies it offers to tempt passengers
launching the service beyond the 18 cit- and encourage new drivers to sign up.
ies in which it operates, the largest News of Uber’s spending spree comes
number outside of the US. as Ola, which is backed by Japanese
“We are extremely bullish on technology group SoftBank and Tiger
the Indian market,” he said. “We are Global, the US investment group, is near
continuing to see robust 40 per cent to closing a financing round.
Technology. Smartphone battle
F
their expansion plans. or a technology company, Netflix certainly
intimidate Uber and Ola are braced for potential makes a lot of television. At a presentation this
investors] new restrictions in New Delhi, following week to the Television Critics Association in Los
a court ruling this week which threat- Angeles, the streaming video business pledged to
won’t work. ened to uphold an earlier ban on all such produce 475 hours of original programming in
Ola is going to apps. the next 12 months.
have plenty Uber previously suffered a temporary Its strategy of adding its own films and TV shows, such as
ban in the Indian capital last December, new series from the director Baz Luhrmann and comedian
of money to following an allegation of sexual assault Aziz Ansari, to the content it licenses from other providers
fight back’ by a driver. has served Netflix very well. The company has 65m sub-
scribers worldwide and a gravity-defying share price,
which has risen close to 600 per cent over the past five
years. Its $45.4bn market capitalisation is greater than the
combined value of commercial broadcasters CBS and ITV.
Netflix has said it will expand into every significant glo-
bal market — including China — by the end of 2016. Its

Samsung units diverge as rivals gain ground
Mobile division flounders
while Apple’s inroads bring
rewards for chip business
SIMON MUNDY — SEOUL
Even as the mobile business of Samsung
Electronics has battled to reverse falling
sales in a fiercely competitive market,
colleagues in other divisions of the
South Korean conglomerate have wel-
comed the increased competition.
Samsung’s earnings for the three
months to June showed the seventh con-
secutive declining quarter, and the dis-
appointing numbers were rooted in the
company’s mobile business.
Operating profit at the IT and mobile
division, which is largely focused on
handsets, fell 38 per cent year on year to
Won2.7tn ($2.4bn), with sales of the
Galaxy S6 flagship phone falling below
company expectations.
In contrast, Samsung’s semiconductor
business saw earnings surge 83 per cent
to Won3.4tn. This was due in part to the
competitive pressures that are hurting
the group’s mobile business, said Baek
Jae-ho,anexecutive inthe division.
“The competition in smartphones is
becoming fierce,” he told analysts on a
What growth remains is
going to rivals — notably in
China, the world’s biggest
smartphone market
conference call. “And the result is that
even low-end smartphones are now
adopting [high-resolution] displays,
which is driving up” the need for more
memory on the devices.
Yesterday’s results showed a stark
divergence between the fortunes of a
handset division losing market share to
Apple and Chinese smartphone makers
such as Xiaomi, and a semiconductor
division that is booming in part because
of demand from those same rivals.
Mr Baek’s statement underscored
Samsung’s revived status as a company
that makes most of its profit from com-
ponents, echoing a shift at Sony, the
electronics group, which has tripled its
second-quarter profit thanks to surging
semiconductor sales despite losses in
smartphones.
Samsung’s shares fell 3.8 per cent,
having risen 2.7 per cent the day before
on expectations it would announce a
share buyback alongside the results.
That proved unfounded.
Sales and operating profit declined
Samsung is still 7 per cent and 4 per cent respectively, in
the largest line with preliminary guidance. But the
smartphone detailed earnings release confirmed the
maker by sales, Galaxy S6, which it had hoped would
although the give a boost to the ailing smartphone
Galaxy S6 has business,didnotfulfilexpectations.
undershot Last year Samsung’s earnings were hit
expectations hard as it struggled to offload unsold
Ahn Young-join/AP Photo
stock of the poorly received Galaxy S5.
The company promised more careful
inventory management to avoid a repeat
— only to be punished this year for
another supply chain error. It was una-
ble to meet demand for the premium
“Edge” version of the S6, while sales of
the basic model undershot expectations.
Samsung said it had addressed the
capacity constraints and expected sales
to be boosted in the second half by the
launch of a larger version of the S6 Edge.
But while the company remains the
leading smartphone producer by sales,
analysts said Samsung would struggle to
return to meaningful growth. The com-
pany is shifting to a strategy focused
more on protecting its margins with a
smaller number of products, said Keon
Han, an analyst at Credit Suisse.
Global smartphone shipments are set
to expand 11 per cent this year, accord-
ing to research group IDC, down from 39
per cent in 2013.
But what growth remains is going to
Samsung’s rivals — notably in China, the
world’s biggest smartphone market,
where IDC said Samsung’s market share
halved to less than 10 per cent in the
first quarter of this year. It lost out to
homegrown rivals such as Huawei,
which last week said handset revenues
increased 87 per cent in the first half.
Meanwhile Apple has enjoyed record
sales of its iPhone 6, leaving a smaller
addressable market for competitors in
the high-margin premium market. “If
Apple is beating its own estimates, that
means someone else is losing and that’s
predominantly Samsung,” said Mr Han.
But Apple’s success is a boon for the
group’s semiconductor business, which
has won a lucrative contract to make
processor chips for the next iPhone.
Samsung’s memory chip division, the
world’s biggest by sales with a big tech-
nological lead over its peers, is profiting
as producers seek to make more power-
ful phones. Xiaomi this year launched a
phone with 4GB of memory, more than
any Apple or Samsung handset.
“We think this trend will continue on
to next year. When we meet our custom-
ers, they say memory is one of the core
things to a smartphone,” Mr Baek said.
An executive from Samsung’s display
unit said it planned to sell the curved
screens that drove demand for the S6
Edgetoothersmartphone makers.
Peter Yu, an analyst at BNP Paribas,
said this was a sign of Samsung’s
increased willingness to allow its com-
ponents business to focus on making its
own profits, instead of playing a support
role to the handset business.
“There’s a war out there” in the mar-
ket, he said. “Some people will bleed to
death, but those who make the money
are the ones who sell the weapons.
That’s the component makers.”
service clearly resonates with audiences who have
embraced its on-demand, digital ethos.
But is its sky-high valuation fully justified, particularly
when compared with HBO, the Time Warner-owned pre-
mium network behind hit shows such as Game of Thrones
and The Sopranos?
The two companies share some attributes. They both
want high-quality programming, they both also license
films from Hollywood studios and they each operate in
multiple markets. HBO is accessed primarily through pay-
television services — it has 46m subscribers in the US and
120m globally — whereas Netflix can be accessed digitally
(although it still operates a subscription DVD business).
Netflix trades at 130 times the $347m it generated in
operating income over the past 12 months. HBO, mean-
while, generated $1.8bn of operating income over the same
period: applying Netflix’s multiple would value HBO at an
eye-popping $234bn. This is almost four times the market
value of Time Warner and would not include its other
assets, such as the Warner Brothers studio or Turner cable
networks.
This disparity is even more dramatic when considering
analyst estimates for 2015 earnings. They expect Netflix to
generate $0.23 per share for the year, giving the company a
price to earnings ratio of 465.
Time Warner, by contrast, is
trading on a multiple of
HBO’s streaming
about 19 times forecast 2015 service could be
earnings.
What explains the valua-
just as globally
tion gulf? There are several distributed as
factors. Netflix is a direct-to-
consumer business, selling
Netflix one day
subscriptions in each market
in which it operates. Two-thirds of its customers are in the
US so there is significant potential in other markets. It is a
relatively cheap service and costs only $7.99 a month in its
home market so there is also potential to increase prices.
Its top line revenues from streaming increased
30 per cent year over year; HBO revenues, by contrast,
have been relatively flat.
At Netflix, short-term profits have been sacrificed as the
company invests to build a truly global streaming net-
work. The prospect of vast future earnings, say analysts, is
what appeals to growth investors.
HBO is already extremely profitable which, perversely,
may explain its lower multiple. It derives most of its earn-
ings from the cable and satellite operators that carry its
channels: its programming is also licensed internationally
by companies such as Sky, which pay it hefty fees.
But, like Netflix, HBO is also in the streaming game. This
spring it launched HBO Now, a standalone service that
aggregates all of its content without the need for an expen-
sive pay-TV subscription.
Richard Plepler, chief executive, has talked about pur-
suing the 10m US broadband users who do not subscribe to
cable or satellite TV. Yet there may be an even bigger prize
on offer for HBO. Its streaming service could, one day, be
just as globally distributed as Netflix. Its licensing deals
with international partners would have to expire before
this could happen, which would take time, depending on
the country and the terms of its agreements.
It is unclear why this potential upside has not been
priced into Time Warner shares. Yes, HBO has differences
with Netflix but its core business — content — is the same.
From Six Feet Under and True Detective to John OIiver: Last
Week Tonight and Girls, there is arguably no company bet-
ter at producing it than the Time Warner-owned group.
Netflix trades on a tech-style multiple; Time Warner
does not. If Jeff Bewkes, Time Warner’s chief executive,
wants to unleash a similar valuation, the creativity of HBO
holds the key.
matthew.garrahan@ft.com

Aerospace Investment companies

Bombardier delays new jet as orders dive
ROBERT WRIGHT — NEW YORK
Canada’s Bombardier was forced yes-
terday to postpone the planned entry
into service of its new business jet amid
a dive in orders and a worsening of its
debt position resulting from the devel-
opment of its C Series commercial jet.
The company said that the develop-
ment of the Global 7000 business jet —
intended to have a range of 7,300 nauti-
cal miles, one of the longest ranges on
the market — presented “challenges”,
which had “impacted the programme’s
schedule”. The jet had been due to enter
service in the second half of next year.
“The aircraft will now enter into serv-
ice in the second half of 2018,” the com-
pany said as it issued second-quarter
results. The Toronto-listed B shares,
which were C$4.20 at the start of the
year, initially dropped 13 per cent but by
lunchtime had recovered to be down
about 10 per cent to C$1.76.
The delay is the latest bad news
announcements this year from Bombar-
dier, which has poured corporate re-
sources into developing the C Series sin-
gle aisle jet, intended as a competitor to
Boeing’s 737 and Airbus’s A320 family.
Cost and timetable overruns for the C
Series have held back the company’s
profitable business jet operations. The
The Global 7000
will enter service in
2018, leaving the
Gulfstream
G650ER
unchallenged
delay to the Global 7000 will give Gen-
eral Dynamics’ Gulfstream a longer
period unchallenged at the top end of
the business jet market. Gulfstream’s
G650ER is the longest-range business
jet, capable of flying 7,500 nautical miles
without refuelling.
Net income for the second quarter fell
19 per cent to $125m, on revenues down
5.5 per cent to $4.62bn. Net debt rose to
$5.9bn, against $5.73bn at the start of
the year, although the company stressed
that equity and debt issues this year
meant that it had cash and cash equiva-
lents of $3.1bn on hand.
Alain Bellemare, who took over as
chief executive in February, said the
quarter had been “in line with plan” in
terms of revenues, earnings before
interest and tax (Ebit) and deliveries.
KKR to inject $150m into India’s JBF Industries
HENNY SENDER — NEW YORK
JBF Industries, a listed polyester maker
based in Mumbai, is to receive a $150m
capital infusion from KKR in a transac-
tion expected to be announced today
following board approval, people close
to the situation said.
Like other industrial companies, JBF
took on a lot of bank debt to meet a
surge in demand that failed to material-
ise and ran into funding issues. The
money from KKR will be used to com-
plete a $600m petrochemical plant in
Mangalore in the south-western Indian
state of Karnataka, while the remaining
portion will help pay down JBF’s $1.6bn
net debt.
The deal is a small indication that for-
eign capital is flowing into India 14
months after the Narendra Modi gov-
ernment came to power with its prom-
ise to get the Indian economy moving
once again. But local private sector
investment has been virtually stagnant
and much of the initial euphoria which
greeted the new government has faded.
“The prime minister needs these
kinds of deals which bring in foreign
capital to complete projects and help get
the country growing again,” said one
person involved in the transaction.
“India is more attractive today than it
was 18 months ago.”
Part of the reason India looks attrac-
tive is because many other emerging
nations appear relatively less attractive.
A combination of slower growth, mar-
ket volatility and slow decision making
as a result of the anti-corruption cam-
paign has diminished the lure of China,
while lower commodity prices have
posed challenges in many other emerg-
ing markets including Brazil, Chile,
Indonesia and South Africa.
Business people in India cite a wel-
come new flexibility in negotiations.
Promoters are willing to give up more of
their equity, while banks, though still
reluctant to write down the value of
their debt, are willing to make conces-
sions on covenants and other terms.
On the JBF deal, the controlling Arya
family will see their 54 per cent stake in
the company drop as KKR takes 20 per
cent of the equity, which could rise if the
investment group takes advantage of a
conversion mechanism in the debt.
KKR declined to comment, while JBF
could not be reached for comment.
Friday 31 July 2015 ★★ FINANCIAL TIMES 15

COMPANIES

Deutsche Bank chief blasts poor performance

Cryan says results
are ‘nowhere near
good enough’ and
underscore problems
facing the lender
JAMES SHOTTER — FRANKFURT
Deutsche Bank’s new chief executive
described its latest results as “nowhere
near good enough” as he delivered a
blunt assessment of the array of chal-
lenges facing Germany’s biggest lender.
In the three months to the end of June,
Deutsche reported a net profit of
€818m, or €0.40 per share, up from
€238m in the same period last year.
Helped by the weakness of the euro,
revenues rose strongly, climbing 17 per
cent from €7.9bn to €9.2bn.
The figures were better than expected
— analysts had forecast net profits of
€722m from revenues of €8.6bn — and
shares in the bank closed up 5.3 per cent
to €31.85 in Frankfurt.
However, John Cryan, the former UBS
banker who succeeded Anshu Jain as co-
chief executive of Deutsche on July 1,
said that the results, which included a
€1.2bn litigation charge mainly linked
to “legacy US mortgage-related
matters”, underscored the problems
facing the bank.
“Our challenges are . . . evident in the
‘We must reduce
organisational complexity,
which inhibits effective
decision making’
unacceptably high level of our costs, our
continuing burden of heavy litigation
charges, a balance sheet that must be
more efficient, and the poor overall
returns to our shareholders,” he said.
“Our cost/income ratio of 85 per cent
and annual return on tangible equity of
5.7 per cent are both well below where
we aim to be and should be,” he added in
a forthright note to staff.
Mr Cryan reiterated that he was com-
mitted to the five-year strategy laid out
in April by Mr Jain and co-chief execu-
tive, Jürgen Fitschen, which involves
selling the Postbank retail banking busi-
ness, cutting assets at the investment
bank, and shrinking Deutsche’s cost
base by €3.5bn. The 54-year-old Briton,
who is due to give details of how he will
implement the plan in the autumn, did
not spell out any precise initiatives yes-
terday. However, he insisted that for the
strategy to succeed, Deutsche would
have to become more efficient.
“We must be disciplined in how,
where and with whom we do business.
We must critically review any countries,
business lines, products and relation-
ships that are unattractive,” he said.
“We must shrink our balance sheet,
focusing on our many low-return assets.
Counting the costs Regulation push
G30 calls for chiefs’ pay
to hinge on standards
An influential group of bankers has
lambasted standards of conduct
across the industry, calling for
boards to link executive pay to
improvements in culture to ensure
that the “tone at the top” has “a
clear and consistent echo from the
bottom”.
Since the financial crisis the
biggest global banks have paid out
hundreds of billions of dollars in
fines, settlements and provisions,
while adding tens of thousands of
compliance staff to keep on top of
new laws and regulations. But so
far there have been only patchy
efforts by the banks to address “a
multitude of cultural failures”,
according to the Group of Thirty, a
non-profit body chaired by Jean-
Claude Trichet, former president of
the European Central Bank.
In a report published yesterday,
the G30 makes recommendations
including the establishment of an
explicit link between the pay of the
chief executive and the cultural
standards of the bank. The report
did not set out how those
standards should be measured, or
how deeply such links should
spread through the ranks. But it
argued that a lack of clear
connections between pay and
Deutsche Bank conduct had fostered bad
Cost/income ratio (%) Return on equity after tax (%) Investment bank pre-tax profits Share price (€) behaviour by encouraging
executives to bend rules or take
H1 (€bn)
100 20 4 40
risks for short-term rewards.
“Financial consequences for
80 Group 15 deficiencies of action or oversight
Investment bank 3 35 should be material, and be
60 10 perceived so internally,” the G30
2 30 said.
40 5 The report, which arose from
discussions late last year with the
1 25
20 0 Financial Stability Board and the
New York Federal Reserve, marks
0 -5 0 20 one of the first attempts by the
banking industry to review its basic
2014 2015 2014 15 2011 12 13 14 15 Jan 2014 15 Jul systems of incentives.
Sources: company; Thomson Reuters Datastream In a speech last month, FSB
chairman Mark Carney said the
group would work “to improve the
Deutsche Bank’s We must reduce organisational However, Deutsche warned that the Deutsche’s best-performing division alignment between remuneration
new co-chief complexity, which inhibits effective ratio was likely to fall again in the in the quarter was its asset and wealth and conduct risk across the globe”.
executive decision making, blurs accountability second half of the year, as a result of new management arm, where pre-tax New York Fed president Bill Dudley
John Cryan says and embeds wasteful cost.” regulations. profits more than doubled to €422m. — who defines culture as “the
the lender must The two areas of the new strategy The bank also has a number of legal However, the bank’s other divisions More on ft.com implicit norms that guide behaviour
be disciplined in where analysts are most keen for more wrangles to resolve, ranging from inves- also reported strong gains, with Banks in the absence of regulations or
how, where and detail are costs and capital — both long- tigations into sanctions-busting to Deutsche’s flagship investment banking challenged on compliance rules” — has warned
Super Thursday
with whom it standing weaknesses for Deutsche. probes into whether Deutsche breached arm notching up a 45 per cent increase of results that unless banks make more
does business “Revenue growth has been slower than anti-money-laundering laws for in pre-tax profits. Deutsche’s global serious efforts to improve
ft.com/alphaville
Ralph Orlowski/Bloomberg
cost growth in core divisions. That has to Russian clients. Some analysts have transactions unit managed a 28 per cent standards, they will face ever-firmer
be reversed,” said Kinner Lakhani, an speculated that it could need to raise increase and profits at its retail bank pressure to be broken up.
analyst at Citigroup. more capital. climbed 27 per cent. The report calls for “meaningful
On the face of it, Deutsche’s capital Mr Cryan acknowledged that the “Overall, these were a good set of and consistent” cuts in pay to
position at the end of the second quarter bank could not control “external” numbers, both in terms of how the punish behavioural lapses — rather
showed signs of improvement. The events. However, he said that he did not trading businesses did versus expecta- than the “ad hoc” approach of
bank shed assets, helping its core tier think that raising capital was in the best tions, as well as the improvement in the banks such as JPMorgan, which
one capital ratio, a key measure of finan- interests of Deutsche’s shareholders, balance sheet,” said Jon Peace, an docked the bonus of chief Jamie
cial strength, climb from 11.1 per cent at and made clear that he would prefer to analyst at Nomura. “However, we’re still Dimon after a $6bn trading loss.
the end of March to 11.4 per cent at the shed assets to improve the bank’s waiting for the details of the strategy. Ben McLannahan
end of June. capital position. Execution will be everything.”

Banks. Capital levels Travel & leisure

RBS gains breathing space, for the moment
Despite positive quarterly
results the bank still faces
some big financial hurdles
EMMA DUNKLEY — LONDON
Royal Bank of Scotland dashed investor
hopes of a dividend payment next year
and warned of a “noisy” period ahead
with looming mis-selling fines, damping
prospects for government plans to begin
selling its stake.
The bank, which is 80 per cent backed
by the UK government, released a better
than expected set of earnings yesterday,
reporting a net profit of £293m in the
second quarter — up 27 per cent from
the same period last year.
The quarterly net profit marked a
reversal of fortune after RBS reported a
first-quarter loss of £446m, as the bank
pushes on with major restructuring
plans to retrench globally and focus on
the UK market. However, in spite of the
positive results, chief executive Ross
McEwan warned of “tough issues com-
ing down the track”, highlighting the
need to settle with US regulators over
the alleged mis-selling of mortgage-
backed securities.
The warning comes only a month
after George Osborne, the UK chancel-
lor, unveiled plans to start selling down
the government’s stake in the country’s
biggest ever privatisation, albeit at a loss
to the taxpayer.
Sir Philip Hampton, the outgoing
chairman of the bank, recently told the
Financial Times that it might be wise to
wait until after a US regulatory settle-
ment is struck “in the coming months”
before the government starts selling its
stake.
Mr McEwan said although “it would
be nice” if the settlement happened this
year, to help clear “some of the issues
that have been a drain on this organisa-
tion”, the bank is not currently in talks
with US regulators and that it could be a
further six to 12 months before discus-
sions start.
Settling with the US regulators, which
analysts estimate could cost at least
£5bn, is also one of the main hurdles in
the way of the bank resuming dividend
repayments. RBS had previously guided
that it will return excess capital either in
the form of a dividend or share buy-
back, once it surpasses a core tier one
ratio of 13 per cent.
But the bank clarified yesterday that
there are a number of other “issues” to
work through beforehand, which
includes the settlement with US regula-
Clouds looming: a US settlement could cost RBS £5bn — Chris Ratcliffe/Bloomberg
tors. Ewen Stevenson, chief financial
officer, warned the bank will not there-
fore distribute capital before the first
quarter of 2017 at the earliest. The bank
must prove it has sustainable profits, he
said, having delivered seven successive
years of net annual losses. “We need to
get through this year’s stress-testing
round and next year’s stress-testing
round before we can begin capital distri-
butions,” he added.
RBS has come under pressure to
strengthen its capital reserves after
almost failing the Bank of England’s
stress test at the end of last year. The
bank boosted its capital buffer from 11.5
per cent at the end of March to 12.3 per
cent in the second quarter as it contin-
ues to repair its capital strength.
Analysts at Morgan Stanley lauded
the move to boost capital as “encourag-
ing”, in spite of incurring £1.5bn of costs
to cover mis-selling and restructuring.
RBS has managed to bolster its capital
buffers by accelerating the sale of its
stake in Citizens, the US retail bank,
which is expects to finish by the end of
2015 — a year ahead of schedule.
RBS announced this week a further
selldown of its current 40 per cent
stake, which could lower its holding to
20 per cent.
In another move to boost capital, the
bank announced an issuance of addi-
tional tier one notes denominated in US
dollars. Mr Stevenson described the
launch as “another important mile-
stone” for the bank, with the aim of rais-
ing at least £2bn of AT1 this year.
Aside from improving capital, the
lender shed assets in its Capital Resolu-
tion division — the internal “bad bank”
— by £3bn in the second quarter, mean-
ing nearly 80 per cent of the unit has
now been exited. The bank expects to
have completed its rundown from RCR
by the end of the year.
The bank reported underlying oper-
ating profit, excluding the cost of
restructuring the bank and conduct
charges, of £1.81bn, down slightly from
£1.95bn in the second quarter of last
year largely because of the rundown of
the investment bank and subsequent
decline in revenues.
RBS must now overcome other hur-
dles. As a condition of receiving state aid
during the financial crisis, it must carve
out Williams & Glyn as a “challenger”
bank, a process at risk of being delayed.
“We’re making very good progress but
it is a tough act to get it out,” said Mr
McEwan. “We’re aiming for an IPO at
the end of next year — our view is we’ll
get there.”
See Lex
SoulCycle flexes its financial
muscle to ride the IPO market
NICOLE BULLOCK AND ERIC PLATT
NEW YORK
SoulCycle, a chain of indoor cycling
studios that has amassed a cult follow-
ing from New York to California, is now
hoping to win loyal fans on the stock
market.
The group, which describes each class as
a “cardio party”, yesterday filed initial
paperwork with the Securities and
Exchange Commission for a public list-
ing. As is customary at this stage, it did
not specify the number or price of the
shares to be sold.
Started in 2006 in the rear lobby of a
former dance studio found on Craigslist,
SoulCycle has grown quickly to count
235,000 riders annually and sales of
roughly $112m last year, a 49 per cent
rise from 2013. It operates 38 cycling
studios in seven US metropolitan areas,
but 97 per cent of its revenues last year
came from the New York, Los Angeles
and San Francisco regions.
The offering arrives as the American
fitness industry is evolving, with an
increasing number of gyms adding yoga
and barre classes. SoulCycle has sought
to offer a unique workout that includes
not just physical exercise but a narrative
of emotional inspiration and empower-
ment.
According to SoulCycle’s prospectus:
“Our riders move in unison as a pack to
the beat, and follow the cues and chore-
ography of the instructor. The experi-
ence is tribal. It is primal. And it is
fun . . . We believe SoulCycle is more
than a business, it’s a movement.”
Outside its studios, the company has
cultivated an extensive digital commu-
nity whereby riders and enthusiasts
who may have never taken a SoulCycle
class communicate with the company
and each other.
Proceeds from the IPO will pay down
debt and fund capital expenditure.
The company has a long-term goal of
operating 250 domestic studios in US
cities and suburban areas, and taking
the brand to international markets.
SoulCycle also sees an opportunity to
expand its line of branded workout
clothing and broaden its reach to an
“at-home” audience. A move to target
affluent customers with at-home ses-
sions follows the success of Peloton, a
privately held company that executives
expect will report $50m in sales this
year.
Risk factors cited in SoulCycle’s filing
include its ability to maintain its reputa-
tion, attract and retain riders, success-
fully expand into new markets and fend
off competition. It is also dependent on a
single supplier and producer for its
bikes.
The company is backed by luxury
gym chain Equinox, owned by The
Related Companies, and Leonard Green
& Partners, the buyout firm. Melanie
Whelan, who has previously worked for
Equinox, the Virgin Group and Star-
wood Hotels, is chief executive.
SoulCycle has been profitable for at
least three years, with net income up 42
per cent year over year in 2014 to
$25.3m.
Goldman Sachs, Bank of America
Merrill Lynch and Citigroup are lead
managers on the IPO.
16 ★★ FINANCIAL TIMES Friday 31 July 2015

COMPANIES

Energy Media

Areva reveals it now needs €7bn cash boost Hollywood

Nuclear group discloses
shortfall as EDF pays €2bn
for stake in reactor unit
MICHAEL STOTHARD — PARIS
Struggling French nuclear group Areva
yesterday disclosed it needed a bigger
than expected capital injection worth
€7bn as it also unveiled a far-reaching
agreement with EDF on asset disposals
and other projects.
The two companies — both state-con-
trolled — agreed in principle that EDF
will pay €2bn for a 75 per cent stake in
Areva’s reactor unit, called Areva NP, in
a radical reshaping of the French
nuclear industry that has come after
months of tense negotiations.
Areva’s shares closed 2.2 per cent up
at €8.26. EDF’s shares were up 3.4 per
cent at €21.85.
Following the deal, Areva, which
reported a €4.8bn net loss last year, will
be reduced to a nuclear fuel company
that mines, enriches and then disposes
of uranium. The heart of the company —
designing, building and servicing
nuclear reactors — is being sold off.
Areva said, however, that it would
need €7bn in capital over the next two
years, meaning that as much as €5bn
will be required from sources other than
utility group EDF. A significant percent-
age of the additional funds is likely to
come from a government-backed capi-
€5 bn tal raising.
The French government may have to
Amount French
government contribute between €4bn and €5bn, far
faces having to more than the €2bn to €3bn that minis-
contribute to Areva ters had hoped for just a few months
ago, according to people familiar with
€3 bn
the situation, although the exact level of
the capital raising was not announced
Maximum that
French government yesterday.
had been hoping to Areva said it could secure €400m
contribute from selling some other assets including
Oil & Gas. Crude prices
Canberra, its nuclear measurements
subsidiary, and as much as €1.2bn from
other sources of equity financing.
This suggested a government-backed
capital raising that might be closer to
€4bn.
The two companies also said they
would set up a dedicated company to be
80 per cent owned by EDF and 20 per
cent by Areva NP, aimed at improving
the design and management of brand
new reactors projects.
One of the problems that has weighed
on Areva in recent years has been cost
overruns at key projects, particularly
the Olkiluoto 3 reactor in Finland,
which is 10 years behind schedule and
prompted the company to take €3.9bn
in impairment charges.
Areva and EDF said they would be
“immunised” against any risks
related to the Olkiluoto 3 project,
suggesting that the French govern-
ment has agreed to shield them
film-maker
Areva chief
executive
from further losses. EDF also said it
would probably sell some of its stake in
Relativity
Philippe Knoche
says he is aiming
Areva NP to third parties, but retain a
shareholding of more than 51 per cent in
files for
to refocus the
company on ‘its
core business,
the unit.
This comes as EDF and Areva both
reported first-half results. Areva
bankruptcy
the nuclear reported a €206m net loss for the six
fuel cycle’ months to June 30, compared with a MATTHEW GARRAHAN
NEW YORK
€488m profit in the same period last
year. Revenue rose 6 per cent to €1.9bn. Relativity Media, the Los Angeles-
Philippe Knoche, Areva chief execu- based entertainment group, has filed
tive, said: “We are targeting a clear for bankruptcy protection after miss-
objective for 2017: to transform Areva ing payments to lenders and running
into a competitive company refocused up as much as $1bn in liabilities.
on its core business, the nuclear fuel
cycle, where it has unique human and The filing is the biggest Hollywood
industrial capital in the world.” bankruptcy since the collapse of Metro-
EDF, which is grappling with a fall in Goldwyn-Mayer four years ago.
European power prices, reported MGM emerged from bankruptcy with
net income of €2.5bn for the six its debt holders in control of the com-
months to June 30 — flat compared pany: its largest shareholder, Anchorage
with the same time last year. Reve- Capital, is Relativity Media’s lead debt
nues rose 6 per cent to €38.4bn. holder.
The company will be auctioned off,
with Blackstone and FTI Consulting
running a process that will be overseen
by the bankruptcy court.
Relativity has received a commitment
of $45m debtor-in-possession financ-

Shell cutting 6,500 jobs amid ‘prolonged downturn’
Anglo-Dutch group to slash
capital spending budget by
20% after oil-price crash
CHRISTOPHER ADAMS — ENERGY EDITOR
Royal Dutch Shell is cutting 6,500 jobs
and will slash its capital spending
budget by 20 per cent this year, as it pre-
pares for a “prolonged downturn” in
crude prices by scrapping and delaying
billions of dollars in energy projects.
The Anglo-Dutch group said yester-
day it would reduce investment by $7bn
from last year’s levels to about $30bn in
2015, a bigger drop than forecast three
months ago and a sharper reduction in
capital spending than many of its rivals.
Ben van Beurden, Shell chief execu-
tive, sought to dispel investor concerns
that its proposed $55bn takeover of BG
Group, announced in April, would
struggle to work at prices of $70 a barrel
or less, and criticisms that the group had
‘We are not waiting for
the $90 cavalry to arrive
when we deal with
today’s challenges’
Ben van Beurden, Shell CEO
been slow to respond to the oil price
crash.
“Judge us on what we do,” he told
reporters. “I want to be very clear we are
acting with determination. “We are not
waiting for the $90 cavalry to arrive
when we deal with today’s challenges.”
He conceded that the group had not
communicated this with sufficient
“urgency” at its full-year results in
January.
Shell’s shares, which have underper-
formed other big oil and gas groups,
closed up 4.2 per cent at £18.39 in Lon-
don.
Oswald Clint, analyst at Bernstein,
said that Shell’s latest figures on spend-
ing addressed investor concerns that
“Shell’s heads are in the sand”.
“With progress on the [BG] deal on
track, this is a new emerging business
which can pay dividends whatever the
oil price environment,” he added.
The BG deal is awaiting some regula-
tory approvals.
For the first time since crude began its
plunge — to $53 from $115 last summer
— Shell set out in full the measures it has
been taking to reposition the company
Shell has responded to investor concerns by unveiling its strategy to reposition the company for a downturn — Andrey Rudakov/Bloomberg
for a downturn that it warned “could given the final go-ahead this year, said
last for several years”. Mr van Beurden. Among those
The 6,500 job losses include reduc- described as “cancelled” was the expiry
tions already announced in its North Sea of a longstanding concession in Abu
business, the US, Canada, Norway and Dhabi, where Shell and BP refused to
Nigeria, and include a cut in the number pay multibillion-dollar signing-on fees
of contractor roles. Shell employed for a new deal.
94,000 people at the end of December. Shell expected asset sales of $50bn
Just two big energy projects would be from 2014 to 2018, as the enlarged
Shell performance
Net income ($bn) Return on invested capital (%)
8 8
6 6
4 4
2 2
0 0
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 14 15 2013 14 15
Source: Bloomberg
Shell-BG, with a leading position in liq-
uefied natural gas and deepwater Bra-
zilian oil, focused on fewer but bigger
projects.
It is selling a one-third stake in Showa
Shell, the Japanese refiner, to Idemitsu
for $1.4bn, and will “take a good look” at
its North Sea portfolio.
Shell’s action comes amid an indus-
try-wide scramble to cut costs, shed
labour and scrap or defer more expen-
sive projects, from Canada’s oil sands to
deepwater fields in the Gulf of Mexico.
The fall in oil prices, caused mainly by
Opec’s decision not to cut output in the
face of a US supply glut, has stoked fears
that companies might fail to maintain
dividend payouts. Some $200bn in
spending on large projects has been
pushed back in an effort to cover those
payouts, according to Wood Mackenzie,
the energy consultancy.
“We have to be resilient in a world
where oil prices remain low for some
time, while keeping an eye on recovery,”
said Mr van Beurden.
“We’re taking a prudent approach,
pulling on powerful financial levers to
manage through this downturn, always
making sure we have the capacity to pay
attractive dividends for shareholders.”
In the three months to June 30, Shell
reported $3.8bn of earnings on a current
cost of supplies basis excluding identi-
fied items — a measure of profit pre-
ferred by analysts. This compared with
$6.1bn in the same quarter last year, but
the performance exceeded analysts’
expectations.
The company highlighted improved
refining margins and robust down-
stream results, where profit more than
doubled from $1.3bn to $3bn, offsetting
the impact of lower oil prices. However,
profits from exploration and produc-
tion fell 78 per cent to $1bn. Output
declined 11 per cent from one year ago.
Analysts were upbeat, pointing to the
strong contribution from refining — a
common theme for the majors — tough
cost control and capital spending cuts.
Analysts at Tudor Pickering Holt said
Shell had “moved more aggressively to
align its business for a lower-for-longer
oil price environment”.
See Lex
ing, funds which will keep it operating
during the sale.
Relativity, which released films such
as Act of Valor and Immortals, was started
by Ryan Kavanaugh, a colourful
character who once earned the ire of
neighbours by landing his helicopter
on a nearby building’s emergency
helipad.
Mr Kavanaugh raised hundreds
of millions of dollars to invest in
movie studio production slates. He ini-
tially earned millions of dollars in fees
Relativity scored a hit
with ‘Limitless’, but
released a string of movies
that underperformed
from the performance of those slates,
and later expanded into production and
distribution with backing from Elliott
Associates, the New York hedge fund
run by Paul Singer.
But relations with Elliott quickly
soured. Ron Burkle, the retail billionaire
stepped in, backing the company.
Relativity scored a hit with Limitless,
starring Bradley Cooper, but failed to
repeat the success, releasing a string of
movies that underperformed.
Expansion into new lines of business,
such as athlete representation, educa-
tion and branding proved to be a further
drain on the company’s resources. In
recent months it has lurched from crisis
to crisis, seeking emergency financing
deals in a bid to stay afloat.
Mr Kavanaugh is expected to stay
with the company during the
bankruptcy process.
Relativity, which is cutting 75 jobs, is
being represented in its bankruptcy
filing by Sheppard Mullin, the law firm.
The filing, in the Southern District of
New York, reveals that the company has
up to $1bn of liabilities.
“The actions we are announcing
today will protect our valuable fran-
chise and allow us to emerge as a
stronger, more focused company,” Mr
Kavanaugh said.
Mr Kavanaugh has been on the
receiving end of a lawsuit filed recently
by RKA Film Financing, a film promo-
tion group, which accused the company
of misusing funds.
In its legal filing, it called Mr
Kavanaugh a “conman” who “through
dishonesty and deceit, operated a
scheme to defraud investors and
convert and misappropriate their
funds”.
Relativity fired back with a $200m
countersuit, claiming that RKA was
seeking to exploit its efforts to refinance
the company.

Contracts & Tenders

Automobiles

Parts maker Delphi pays £1.1bn for UK peer in future tech push
ANDY SHARMAN
MOTOR INDUSTRY CORRESPONDENT
UK car parts maker Delphi Automotive
is to buy British peer Hellermann-
Tyton in a £1.1bn deal, part of a series
of moves yesterday announced by the
tech-focused supplier.
The takeover is the latest in a string of
deals among car industry suppliers as
they seek scale to serve global vehicle
manufacturers by snapping up the best
future car technology.
Delphi, which is headquartered in
Gillingham, south-east England, but
listed in the US and run from Michigan,
has agreed to buy HellermannTyton for
480p a share — a 44.5 per cent premium
to the closing price the day before — in
an all-cash transaction.
HellermannTyton, which had a mar-
ket cap of £715m at Wednesday’s close
versus Delphi’s $22.3bn, makes prod-
ucts for protecting, routing and fasten-
ing cables. Based in Crawley, southern
England, it supplies Volvo, BMW and
Delphi as well as aerospace companies.
Delphi is one of the world’s largest
parts suppliers and specialises in com-
ponents and software that seek to make
cars safer, better connected and more
environmentally efficient.
Delphi, once part of General Motors,
wants to capitalise on a shift towards
greater connectivity in vehicles, as well
as the rise of the autonomous car.
That was underlined yesterday as
Delphi also announced the acquisition
of Ottomatika, a Pittsburgh-based soft-
ware company that helped Delphi com-
plete a self-driving coast-to-coast road
trip in the US in April.
Delphi has also entered into a strate-
gic collaboration with Quanergy of Cali-
fornia, which makes 3D lidar sensors —
used to power advanced driver assist-
ance systems, autonomous cars and
high-definition maps.
“Delphi is certainly working on trans-
forming the whole company into the
‘my dream car’ supplier,” said Chris
McNally, analyst at Evercore ISI.
Not satisfied with three big announce-
ments, Delphi also flagged a minority
investment in Tula Technology, which
uses software to boost the fuel efficiency
of engines, and said it would divest its
automotive antennas business to North-
east Industries, a Chinese supplier.
Car industry
suppliers are
seeking scale by
snapping up the
best future car
technology
The HellermannTyton deal — the
only transaction for which financial
details were released — is based on the
logic that the era of the connected car
calls for more and more electrical archi-
tecture in vehicles.
Kevin Clark, Delphi chief executive,
said: “With consumers now demanding
more connectivity in their vehicles,
electrical architecture is the enabler of
that added vehicle content.”
Shares in HellermannTyton — taken
public by former private equity owner
Doughty Hanson in 2013 at 195p — rose
42 per cent to 472.1p.
The deal implies an enterprise value
for HellermannTyton at about 14.7
times last year’s earnings before inter-
est, tax, depreciation and amortisation.
Delphi’s shares, which have risen
16 per cent over the past year, fell 0.7 per
cent in morning trading in New York.
Friday 31 July 2015 ★ † FINANCIAL TIMES 17

COMPANIES

Media Technology

Fox and BuzzFeed close in on NBC deals Baidu bows

Traditional media group
looks to invest in digital to
reach younger audience
MATTHEW GARRAHAN — NEW YORK
BuzzFeed and Vox Media, two leading
digital news groups, are close to striking
hefty investment deals with Comcast’s
NBCUniversal that value BuzzFeed at
$1.5bn and Vox at $850m.
NBCUniversal, owner of the US
broadcast network, Universal movie
studio and portfolio of cable channels,
will invest $250m in BuzzFeed and an
undisclosed amount in Vox.
The investments serve each company
in different ways, according to a person
familiar with the situation. Like other
traditional media groups, NBC wants to
reach younger audiences that are
increasingly shunning television for dig-
ital platforms. For BuzzFeed and Vox,
the new funding and closer partnership
with NBC could lead to television
projects and new sources of revenue, the
person added.
Vox and BuzzFeed have both invested
in branded content, a growth area for
digital news operations. The branded
content market is forecast to increase by
The US 20 per cent a year in the US, from $10bn
in 2014 to $25bn in 2019, according to
branded new research from Boston Consulting
content Group, the professional services firm.
market is set The negotiations to invest in the two
companies are at an advanced stage but
to rise by 20% no deals have yet been signed, according
a year to people familiar with the matter.
Technology. Digital drive
The value of digital properties able to
connect with large audiences online has
soared in recent years. Last year, Buzz-
Feed, known for its lists, Gifs and exper-
tise in aggregation, took a $50m invest-
ment from Andreessen Horowitz, the
Silicon Valley firm, which valued it at
$850m. It also briefly held talks with
Disney for a sale which would have val-
ued it at $1bn.
Vox, which owns sites such as SB
Nation, Curbed and Eater, secured
$46.5m of financing last year from Gen-
eral Atlantic, the New York private
equity firm, in a deal that valued it at
$380m.
The company recently bolstered its
portfolio of web properties with the
acquisition of Recode, the influential
technology which was started by two
to investors
former Wall Street Journal reporters,
Kara Swisher and Walt Mossberg. News
with $1bn
of the talks were first reported by
Recode, the technology news website
owned by Vox, which already counts
buyback
Comcast as a shareholder.
BuzzFeed and Vox may have an eye on CHARLES CLOVER — BEIJING
Vice Media in negotiating their new
Baidu has moved to restore investor
deals with NBCUniversal. The youth-
confidence with a $1bn share buyback,
$1.5 focused media group’s valuation has
bn after $12bn was wiped off the Chinese
soared since it got into television pro-
Value of search engine’s stock market capitali-
duction and distribution. Last year it
BuzzFeed if it sation in the wake of disappointing
strikes a deal raised $500m from investors last year
quarterly earnings.
with NBC including A&E Networks and Technol-
ogy Crossover Ventures, the Silicon Val- The buyback will be funded with exist-
$850 m
ley private equity firm, that valued it at ing cash and will take place over
$2.5bn. 12 months, Baidu said yesterday, after
Vox’s value if it
NBCUniversal declined to comment its shares fell 14 per cent over the week.
secures the
investment on the talks with BuzzFeed and Vox Baidu narrowly missed analysts’ esti-
from NBC Media. mates for second-quarter profits and
guidance for third-quarter revenues
The company said that the move
“demonstrates Baidu’s confidence in the
O2O [online-to-offline] opportunity
and in our ability to capture it. It’s our
commitment with nine zeros”.

Singapore start-ups aim to be top kids on the block
City-state hopes to become
the Silicon Valley of Asia, but
ready funding outweighs ideas
LOUISE LUCAS — HONG KONG
Keen tech investor though he is, Hugh
Mason is grateful he does not have a
weak bladder: “Every time you go for a
pee, someone is pitching you an idea,”
he says.
Welcome to Block 71 in downtown
Singapore, home to more than 100 start-
ups, accelerators and angel investors
and, together with Blocks 73 and 79,
among the densest technology ecosys-
tems in the world.
Dubbed LaunchPad, this is where the
city-state is pursuing its goal of becom-
ing the world’s top digital nation — and
where geeks are disrupting everything
from estate agents to healthcare.
‘To make money [in
Singapore], there’s no pain.
And without pain it’s hard
to have good innovation’
Singapore offers a strong legal system and so little red tape that it is possible to set up a business online in only 15 minutes — Edgar Su/Reuters
The city state is well placed to fulfil its
aim of becoming an Asian Silicon Valley.
While China and India attract more dol-
lars, Singapore offers a strong legal sys-
tem and minimal red tape — a business
can be set up online in 15 minutes —
making it a logical base from which to
access bigger regional markets that lack
these advantages.
Best of all, it is awash with money.
Much of the privately raised venture
capital is matched by government fund-
ing, helping Singapore trump most of its
peers outside China and India in terms
of overall investment.
Singapore’s $324m last year was
nearly 10 times Hong Kong’s $37m,
according to Asian Venture Capital Jour-
nal. That is still far behind China, which
saw $5.5bn in investments in the first
half of this year, and India with $3.3bn.
Singapore itself already boasts 55,000
start-ups that are employing staff.
The glaring problem is the dearth of
creative talent. Markus Gnirck, who
runs accelerator Startupbootcamp Fin-
Tech, which he co-founded in the UK
last year, sums it up: “Europe has way
more ideas than investment; Asia has
More on ft.com more investment than ideas.”
Hong Kong and Singapore are
seeking to emulate the start-up Singapore’s zealous government has
culture of Silicon Valley. Ben tried to improve things in this area too.
Bland and Louise Lucas examine Mr Gnirck has a base at government-
whether they are succeeding. subsidised Bash (Build Amazing Start-
ft.com/video ups Here), a vast 22,000 sq ft space that
looks like a cross between an Ikea show-
room and a Montessori nursery.
Here a host of start-ups enjoy not just
Venture capital investment cheap space but a new way of thinking.
$m Joseph Ziegler, a transplanted Texan
who runs a start-up accelerator for Tel-
0 100 200 300 stra, the Australian telecoms group, is
unconvinced and says the easy money is
Australia
2014 part of the problem. He says the start-up
2015 YTD scene in Singapore is “boring boring
Hong boring. To make money here, there’s no
Kong pain. And without pain it’s hard to have
good innovation.”
Japan Government officials bridle at such
complaints. They say the administra-
Singapore tion has a road map to end grants and
other funding, but the initial leg-up has
to come from the state — as it did in Sili-
con Valley.
Source: Asian Venture Capital Journal
They also say earlier criticisms of
wanton capital allocation, when anyone
who put their hand out received a
cheque, are no longer valid — a strict
selection procedure ensures that only
the best are awarded the coveted fund-
ing and mentoring available at Bash.
The idea is that private-sector capital,
which is plentiful at start-up level, will
fill the gap. “We know it would not sur-
vive if we needed the government to
sign a cheque every time,” says Eddie
Chau, a veteran entrepreneur and
investor based in Block 71.
The government originally weighed
in alongside venture capital firms in the
wake of the 2008 financial crisis, a time
when the country saw an influx of tal-
ent, as bankers lost their jobs and entre-
preneurs, such as Mr Mason, arrived
from the US and Europe.
But if checking into Singapore’s eco-
system is straightforward enough, exit-
ing is less so.
Unlike Hong Kong, Singapore’s initial
public offerings market is sluggish and
there are few big Alibaba, Google or
Facebook-style companies ready to
snap up the next big thing, notes Mr
Ziegler.
Alexey Pisarev, a banker and founder
of a wearable device that juices up exer-
cise routines, laments the lack of fund
managers who understand start-ups.
“To have M&A you need multibillion-
dollar companies around. It will take
time before we reach that level of matu-
rity.”
One answer already in evidence, says
Mr Ziegler, is big multinationals using
research and development budgets to
invest in start-ups. Mario Aquino, ven-
ture partner at McKinsey Solutions, the
professional services firm, agrees.
“Multinationals are building their
own accelerators and corporate venture
capital arms,” he says. “There are
increasing connections between start-
ups and large corporations.”
For Steve Leonard, tasked with lead-
ing the government drive from the Info-
comm Development Authority of Singa-
pore, “there has been a great awakening
of the entrepreneurial spirit . . . Singa-
pore is on a new growth strategy”.
Reporting results on Monday, Baidu
forecast revenue growth for the current
quarter at 34-37 per cent.
“Last year, they had a full year of 50 or
near 50 per cent year-on-year revenue
growth, and now they’ve had two quar-
ters sub-40 per cent and another quar-
ter of guidance suggesting mid-30s. So
basically the message is that for search,
the party is over,” said Mark Natkin of
Marbridge Consulting in Beijing.
Analysts worry that the slowdown
raises doubts about Baidu’s ability to
manage the transition from an internet
ruled by PC users to one dominated by
smartphones, where users pick from a
screen full of apps instead of finding
content through search engines.
Robin Li, Baidu’s chairman,
announced in June a Rmb20bn ($3.2bn)
investment over three years in Baidu
Nuomi, its Groupon-like marketplace,
to lift its performance in mobile.
Nuomi is envisioned as a focal point
for services such as movie ticket sales
and taxi hailing where physical and vir-
tual commerce are combined in what is
known as “online-to-offline” business
funnelling users to online payments sys-
tems.
Analysts have expressed concern that
Baidu is losing focus, citing as an exam-
ple Baidu wallet, the online payment
system founded in April 2014 and the
weakest of China’s major online pay-
ment services.
In data released for the third quarter
of 2014 by Analysys, a Beijing-based
consultancy, Baidu Wallet, its mobile
payments service, was found to have
0.06 per cent of the market. This com-
pared to 79 per cent for Ant Financial’s
Alipay, the country’s most popular
mobile payments service which is
owned by rival Alibaba.
The companies published more
recent figures which suggest the gap has
closed slightly. Baidu said it had 35m
active users for Baidu Wallet at the end
of June, while Alipay said it had 400m.
“People are concerned that Baidu is
not going to be able to move to online-
to-offline because their payment sys-
tem is a lot weaker than Tencent and
Alibaba,” said Shaun Rein of China Mar-
ket Research Group in Shanghai.Invest-
ments in things like movie tickets and
other “online-to-offline” businesses are
“something they haven’t proved they
are good at,” he added.
“They’re getting hammered because
they’re making the investment they
need to potentially thrive in the next
five to 10 years. The concern is, are they
making the right investments, and are
they going to be good at those new
businesses?”

Technology Technology

Google defies ‘right to be forgotten’ demands
MURAD AHMED — LONDON
Google will disobey a formal notice
from France’s privacy watchdog, which
has demanded the company extends
Europe’s “right to be forgotten” online
around the world, in a move that risks
further legal action.
In a controversial ruling last year, the
European Court of Justice found citizens
have the right to ask internet search
engines to remove embarrassing or sen-
sitive results that include their name.
Google has accepted the judgment,
but has a policy of stripping sensitive
links only from European versions of its
search engine. That means links
expunged from Google’s French, Ger-
man or British sites do not need be
stripped from Google.com.
Last month, the Commission nation-
ale de l’informatique et des libertés
issued Google with a formal notice,
arguing that links must also be stripped
internationally to comply with the law.
Google said yesterday it will “respect-
fully disagree” with the watchdog’s
demands, adding that it has asked for
the formal notice to be removed. “While
the right to be forgotten may now be the
law in Europe, it is not the law globally,”
said Peter Fleischer, global privacy
counsel at Google.
He said there are “innumerable”
examples around the world where con-
tent declared illegal in one country
would be deemed legal in others. “Thai-
land criminalises some speech that is
critical of its king, Turkey criminalises
some speech that is critical of Atatürk
and Russia outlaws some speech that is
deemed to be gay propaganda.”
Mr Fleischer added: “If the CNIL’s
proposed approach were to be
embraced as the standard for internet
regulation, we would find ourselves in a
race to the bottom. In the end, the inter-
net would only be as free as the world’s
least free place.”
‘While the right to be
forgotten may now be
the law in Europe, it is
not the law globally’
Google said it believed the CNIL’s
request was “disproportionate” because
97 per cent of French internet users
access Google.fr, rather than any other
version of the search engine.
CNIL said it would deal with Google’s
response within the statutorily required
period of two months. It added that the
technology group’s arguments were in
part “political”, whereas it said its own
reasoning was “strictly legal”.
The French watchdog is leading dis-
cussions among a group of data protec-
tion regulators across all 28 EU member
states over the implementation of the
right to be forgotten. Its move ramps up
pressure on Google, potentially creating
a regulatory front against the technol-
ogy group at a time when it is already
facing an antitrust probe related to its
dominance of the search market and
attacks over its tax avoidance regime.
France would be the first country to
open a sanctions process over the right
to be forgotten, but CNIL’s powers are
limited as it is can only impose fines of
up to €150,000. The larger threat is that
the French regulator and others may
seek to take the company to court again.
Loon balloon WiFi up and away in Sri Lanka
JAMES CRABTREE — MUMBAI
Project Loon, Google’s stratospheric
internet access project, has signed its
first national agreement with the gov-
ernment of Sri Lanka, making the trop-
ical island nation a frontrunner in the
race to offer countrywide WiFi access
from huge helium-filled balloons.
Launched in 2013, Project Loon is an
ambitious plan to encircle the Earth
with a chain of balloons floating high in
the atmosphere that link together to
form a network giving internet access to
remote and rural areas.
Yesterday, Google spokesman Taj
Meadows confirmed that it had signed a
memorandum of understanding with
Sri Lanka’s government, which he said
was an “important early step” for
the project, “but it’s still very, very
early days”.
Project Loon is one of the most high-
profile among several so-called “moon
shot” projects developed by the com-
pany’s secretive Google X laboratory,
ranging from solar-powered drones
to self-driving cars.
The balloon internet plan aims to pro-
vide internet access at speeds close
to third-generation mobile phones,
although it faces far-reaching technical
obstacles, including navigating its bal-
loons in wind currents towards the edge
of the earth’s atmosphere.
Project Loon has also pitched Google
into a high-altitude contest with Face-
book — which is developing its own
plans for networks of flying drones, sat-
ellites and lasers — to see which US tech
giant can first provide internet coverage
across large swaths of the planet.
However, Google has also been
attempting to curb costs over recent
Google plans to roll out Project Loon
internet access across Sri Lanka
quarters and this year mothballed its
high-profile Google Glass “smart”
glasses, placing the remainder of its
experimental tech projects under
increased scrutiny.
Sri Lanka’s deputy minister of policy
planning and economic development,
Harsha de Silva, celebrated his coun-
try’s agreement with Google, noting on
social media that it could now take only
“a few months” to provide internet
access to the island’s 21m population —
only a quarter of which is online,
according to UN data.
However, the details of the memoran-
dum of understanding provide no time-
table, and one person with knowledge of
the discussions said a launch was
“highly unlikely” to happen in 2015.
“This is more of an agreement to have
further discussions about how we set it
up,” the person said, speaking on condi-
tion of anonymity. “Any launch is going
to be quite a long way off — a year or two
at least.”
Project Loon took off with an initial
test in New Zealand in 2013, with the
goal of providing internet access to a
range of southern hemisphere nations.
18 ★★ FINANCIAL TIMES Friday 31 July 2015

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.03% -0.49% -0.11% -0.907% -0.256% -0.709% -0.84% -0.25%

No change
0.33% 0.57% 0.62% 1.08% 0.416%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,108.63 14,553.33 6,668.87 20,522.83 2,097.89
14,382.78 6,608.59 11,180.50 11,257.15 20,235.73
2,063.11
2,019.03
Day 0.00% Month 2.48% Year 7.04% Day 0.57% Month -1.17% Year -7.36% Day 0.57% Month 2.37% Year -1.44% Day 0.40% Month 2.85% Year 17.34% Day 1.08% Month 2.05% Year 31.40% Day -0.91% Month -2.01% Year -2.08%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,128.78 26,250.03
1,571.22 11,168.60
44,928.52 1,533.89 10,911.50 3,317.33
4,986.87 44,373.31 24,497.98
3,249.52
Day 0.33% Month 3.43% Year 15.44% Day -0.22% Month -1.51% Year 0.14% Day 0.62% Month 4.00% Year 14.93% Day -1.01% Month 2.90% Year 2.45% Day -0.49% Month -5.66% Year -0.58% Day -1.05% Month -0.93% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
52,757.54 5,046.42 23,396.09 4,053.70
17,619.51 17,745.98 22,943.64 28,020.87
4,883.19 3,705.77
49,897.40 27,705.35

Day -0.03% Month 0.85% Year 4.93% Day -0.69% Month -6.00% Year -12.27% Day 0.58% Month 3.63% Year 15.60% Day 0.63% Month 4.16% Year 12.01% Day -2.20% Month -8.57% Year 69.74% Day 0.51% Month 0.22% Year 6.59%

Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29
Argentina Merval 11224.56 11313.70 Cyprus CSE M&P Gen 76.56 76.94 Italy FTSE Italia All-Share 25100.77 24959.51 Philippines Manila Comp 7510.39 7482.83 Taiwan Weighted Pr 8651.49 8563.48 Cross-Border DJ Global Titans ($) 241.80 242.05
Australia All Ordinaries 5653.10 5609.60 Czech RepublicPX 1030.69 1026.55 FTSE Italia Mid Cap 34824.11 34794.18 Poland Wig 52011.81 52288.10 Thailand Bangkok SET 1417.49 1408.07 Euro Stoxx 50 (Eur) 3583.79 3575.53
S&P/ASX 200 5669.50 5624.20 Denmark OMXC Copenahgen 20 1006.36 1013.24 FTSE MIB 23396.09 23248.90 Portugal PSI 20 5739.69 5698.99 Turkey BIST 100 78079.76 78024.02 Euronext 100 ID 983.50 980.39
S&P/ASX 200 Res 3207.80 3147.30 Egypt EGX 30 8105.69 7949.89 Japan 2nd Section 5070.67 5080.82 PSI General 2637.49 2616.61 UAE Abu Dhabi General Index 4821.99 4854.63 FTSE 4Good Global ($) 5734.12 5738.61
Austria ATX 2481.28 2481.98 Estonia OMX Tallinn 873.53 876.98 Nikkei 225 20522.83 20302.91 Romania BET Index 7606.54 7556.44 UK FT 30 2933.90 2935.70 FTSE All World 280.47 280.79
Belgium BEL 20 3726.85 3719.38 Finland OMX Helsinki General 8634.06 8519.45 S&P Topix 150 1378.27 1365.04 Russia Micex Index 1636.72 1622.32 FTSE 100 6668.87 6631.00 FTSE E300 1571.22 1561.48
BEL Mid 6132.95 6139.63 France CAC 40 5046.42 5017.44 Topix 1647.21 1633.94 RTX 867.74 865.84 FTSE 4Good UK 6026.83 5994.08 FTSE Eurotop 100 3147.34 3124.93
Brazil Bovespa 49897.40 50245.15 SBF 120 3958.90 3941.10 Jordan Amman SE 2125.72 2130.17 Saudi-Arabia TADAWUL All Share Index 9098.27 9107.39 FTSE All Share 3635.28 3618.45 FTSE Global 100 ($) 1357.04 1358.27
Canada S&P/TSX 60 848.03 842.15 Germany M-DAX 20564.65 20545.58 Kenya NSE 20 4605.25 4532.28 Singapore FTSE Straits Times 3249.52 3284.00 FTSE techMARK 100 3884.70 3873.52 FTSE Gold Min ($) 863.74 845.92
S&P/TSX Comp 14382.76 14301.80 TecDAX 1761.52 1769.48 Kuwait KSX Market Index 6253.71 6245.03 Slovakia SAX 250.86 251.79 USA DJ Composite 6238.57 6233.79 FTSE Latibex Top (Eur) 2968.90 2969.10
S&P/TSX Met & Min 519.75 547.22 XETRA Dax 11257.15 11211.85 Latvia OMX Riga 442.70 441.28 Slovenia SBI TOP 744.13 741.26 DJ Industrial 17745.98 17751.39 FTSE Multinationals ($) 1557.85 1545.68
Chile IGPA Gen 18484.52 18368.63 Greece Athens Gen 797.52 797.52 Lithuania OMX Vilnius 499.57 499.13 South Africa FTSE/JSE All Share 51774.41 51598.54 DJ Transport 8419.78 8420.87 FTSE World ($) 496.53 497.05
China FTSE A200 9873.93 10163.06 FTSE/ASE 20 241.22 237.38 Luxembourg LuxX 1608.79 1611.82 FTSE/JSE Res 20 36107.04 35800.26 DJ Utilities 578.88 575.20 FTSEurofirst 100 (Eur) 4491.69 4458.41
FTSE B35 10940.14 11222.24 Hong Kong Hang Seng 24497.98 24619.45 Malaysia FTSE Bursa KLCI 1699.92 1698.99 FTSE/JSE Top 40 46302.48 46108.87 Nasdaq 100 4598.59 4581.60 FTSEurofirst 80 (Eur) 4784.43 4770.02
Shanghai A 3882.03 3969.28 HS China Enterprise 11137.33 11273.69 Mexico IPC 44373.31 44471.29 South Korea Kospi 2019.03 2037.62 Nasdaq Cmp 5128.78 5111.73 MSCI ACWI Fr ($) 425.64 422.25
Shanghai B 357.54 366.28 HSCC Red Chip 4402.41 4385.72 Morocco MASI 9723.10 9723.19 Kospi 200 243.61 245.97 NYSE Comp 10881.75 10883.91 MSCI All World ($) 1760.69 1747.06
Shanghai Comp 3705.77 3789.08 Hungary Bux 22537.66 22321.54 Netherlands AEX 495.17 489.29 Spain IBEX 35 11168.60 11282.90 S&P 500 2108.63 2108.57 MSCI Europe (Eur) 1511.45 1506.51
Shenzhen A 2226.24 2300.33 India BSE Sensex 27705.35 27563.43 AEX All Share 751.08 743.82 Sri Lanka CSE All Share 7332.05 7313.97 Wilshire 5000 22205.86 22192.39 MSCI Pacific ($) 2447.84 2441.28
Shenzhen B 1231.34 1251.40 S&P CNX 500 7019.60 6974.15 New Zealand NZX 50 5891.85 5870.77 Sweden OMX Stockholm 30 1603.50 1597.86 Venezuela IBC 15473.33 15537.75 S&P Euro (Eur) 1577.29 1572.88
Colombia COLCAP 1325.32 1297.62 Indonesia Jakarta Comp 4712.49 4721.12 Nigeria SE All Share 30510.95 30614.81 OMX Stockholm AS 526.52 524.74 Vietnam VNI 626.57 624.70 S&P Europe 350 (Eur) 1612.51 1601.93
Croatia CROBEX 1800.47 1798.37 Ireland ISEQ Overall 6449.57 6427.75 Norway Oslo All Share 687.49 683.28 Switzerland SMI Index 9397.69 9387.97 S&P Global 1200 ($) 1943.22 1941.60
Israel Tel Aviv 100 14.83 14.77 Pakistan KSE 100 35887.66 35699.75 Stoxx 50 (Eur) 3439.25 3415.34
(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 Jul 30 %Chg %Chg Jul 30 %Chg %Chg Jul 30 %Chg %Chg Jul 30 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Facebook Class A 81.7 95.21 -1.78 Glaxosmithkline 218.3 1389.00 14.50 Amadeus It 668.7 39.86 0.13 Tokyo Electric Power ,orporated 1414.5 838.00 40.00 Rsa Insurance 517.00 16.4 18.9 Hellermanntyton 470.50 41.1 49.4 Chime Communications 345.25 25.8 21.6 Automobiles & Parts 7385.95 4.9 -8.1
Apple 39.1 122.37 -0.62 Bg 209.4 1079.50 39.50 Santander 564.1 6.28 -0.22 Mizuho Fin,. 545.3 268.00 5.60 Hikma Pharmaceuticals 2405.00 15.6 21.5 Greggs 1341.00 12.7 83.2 Quintain Estates And Development 131.25 22.1 37.8 Oil Equipment & Services 17379.56 4.0 5.9
Amazon.com 20.0 536.76 7.76 Royal Dutch Shell 168.9 1861.00 84.00 Royal Dutch Shella 456.9 26.35 1.24 Mitsubishi Ufj Fin,. 532.5 893.20 14.40 Gkn 315.90 4.8 -8.2 Domino's Pizza 885.00 10.6 26.0 Liontrust Asset Management 374.75 12.5 37.8 Tobacco 44781.71 3.6 10.3
Microsoft 18.5 46.88 0.59 Royal Dutch Shell 168.2 1839.00 74.50 Bbva 446.6 9.27 -0.04 Hitachi, 522.8 784.60 48.00 British American Tobacco 3740.00 4.5 6.9 Drax 288.90 10.5 -37.3 Fdm (holdings) 459.00 12.0 31.3 Electronic & Electrical Equip. 4298.27 3.6 6.7
Procter & Gamble 17.1 77.39 -3.23 British American Tobacco 161.5 3740.00 59.50 Deutsche Bank Ag Na O.n. 438.5 30.26 0.00 Canon . 502.0 3927.00 -38.50 Vodafone 241.05 3.9 8.3 Laird 400.10 10.3 28.6 Games Workshop 555.00 7.2 6.7 Mobile Telecommunications 5443.79 3.4 8.3
Netflix 15.8 111.56 4.48 Bp 141.9 401.00 2.40 Siemens Ag Na 391.0 92.48 0.00 Japan Tobacco . 490.2 4765.50 107.50 Royal Dutch Shell 1861.00 3.5 -16.7 Virgin Money Holdings (uk) 419.70 7.6 45.7 Photo-me Int 150.25 5.3 6.7 Nonlife Insurance 2312.17 2.9 19.5
Gilead Sciences 14.0 117.90 2.19 Lloyds Banking 140.7 86.02 0.42 Eni 367.3 15.92 0.08 Fast Retailing Co., 456.9 61930.00 1700.00 Intercontinental Hotels 2743.00 3.4 5.7 Tate & Lyle 544.00 7.3 -9.8 Stobart Ld 111.50 4.9 2.1 Oil & Gas Producers 6606.88 2.3 -7.2
Google Class A 13.1 664.56 3.13 Astrazeneca 139.5 4319.50 128.50 Renault 339.6 83.13 -7.22 Toyota Motor 454.2 8163.00 51.00 Royal Dutch Shell 1839.00 3.1 -14.6 Bwin.party Digital Entertainment 113.70 6.3 -3.5 Ferrexpo 58.50 4.9 10.4 Household Goods 15883.29 1.7 24.2
Whole Foods Market 12.7 36.08 -4.74 Royal Bank Of Scotland 130.8 342.40 -10.80 Ab Inbev 334.6 109.15 -4.30 Nomura Holdings, . 441.5 891.40 31.00 Next 7885.00 3.0 15.6 Card Factory 339.90 5.1 20.1 Ite 184.75 4.7 15.5 Pharmaceuticals & Biotech. 13107.55 1.4 3.2
Baidu 12.2 174.47 4.46 Hsbc Holdings 127.6 577.10 0.60 Total 323.3 44.96 0.64 Fanuc 434.8 20745.00 45.00 Intertek 2438.00 2.9 4.5 Informa 584.50 5.0 24.2 Energy Assets 560.00 4.7 24.4 Health Care Equip.& Services 6804.34 1.2 0.9
Reckitt Benckiser 6104.00 2.8 17.2 Amec Foster Wheeler 834.00 4.6 -2.2 Flybe 93.75 4.2 -15.5 Electricity 8809.81 1.2 -9.9
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Bg 1079.50 2.5 24.8 hcape 802.00 4.4 10.6 Soco Int 159.25 4.1 -47.5 Industrial Engineering 8347.52 0.8 -5.5
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Western Digital 86.44 7.69 9.77 Hellermanntyton 470.50 138.40 41.67 Safran 67.51 6.16 10.04 Hino Motors, 1591.00 102.00 6.85 Babcock Int 985.50 -7.6 -6.9 Lonmin 53.80 -28.7 -69.7 Xchanging 97.50 -18.4 -37.3 Industrial Metals 978.96 -9.6 -35.3
Wynn Resorts Ltd 104.12 8.09 8.42 Laird 400.10 50.30 14.38 Nokia 6.43 0.45 7.53 Hitachi, 784.60 48.00 6.52 Antofagasta 580.50 -7.6 -22.9 Premier Farnell 134.20 -19.6 -23.8 Hochschild Mining 78.25 -8.7 -11.1 Industrial Transportation 2918.26 -3.8 3.2
Vertex Pharmaceuticals 135.46 9.84 7.83 hcape 802.00 49.50 6.58 Legrand 55.80 3.73 7.16 Sumitomo (sumitomo Shoji Kaisha,) 1418.00 86.00 6.46 Easyjet 1644.00 -6.1 -1.6 Intermediate Capital 572.00 -16.0 6.6 Enquest 37.00 -8.6 4.2 Beverages 14060.47 -3.3 -0.5
Nxp Semiconductors N.v. 97.87 6.07 6.61 Bodycote 682.50 32.50 5.00 Alcatel-lucent 3.45 0.18 5.64 Showa Shell Sekiyu K.k. 1170.00 68.00 6.17 Compass 1031.00 -6.0 -6.4 Aggreko 1215.00 -15.0 -19.2 Anglo-eastern Plantations 595.00 -8.5 7.2 Travel & Leisure 8537.46 -2.8 5.9
Air Products & Chemicals 142.34 8.20 6.11 Royal Dutch Shell 1861.00 84.00 4.73 Royal Dutch Shella 26.35 1.24 4.94 Nippon Light Metal Holdings , 211.00 12.00 6.03 Int Consolidated Airlines S.a. 542.00 -5.5 11.5 Vedanta Resources 385.00 -13.9 -33.0 Infinis Energy 139.25 -7.9 -36.7 Software & Computer Services 1522.50 -2.5 22.0
Sage 515.00 -5.2 10.6 Ladbrokes 111.50 -13.1 0.9 Biotech Growth Trust (the) 824.00 -7.9 21.5 Food & Drug Retailers 3145.98 -1.6 11.1
Downs Downs Downs Downs
Diageo 1811.00 -5.0 -2.0 Fisher (james) & Sons 1093.00 -10.6 -8.8 Gem Diamonds 126.00 -7.4 -27.9 Equity Investment Instruments 7439.18 -1.5 2.9
Qorvo 60.49 -9.99 -14.17 Talktalk Telecom 309.30 -17.10 -5.24 Renault 83.13 -7.22 -7.99 Panasonic 1447.50 -89.00 -5.79
Royal Mail 492.80 -4.2 14.6 Evraz 99.40 -10.0 -35.7 Lms Capital 73.00 -7.0 -6.4 Support Services 6947.47 -1.5 8.0
Whole Foods Market 36.08 -4.74 -11.61 Babcock Int 985.50 -53.50 -5.15 Jc Decaux Sa. 35.81 -1.58 -4.23 Nichirei 890.00 -54.00 -5.72
Glencore 211.00 -4.1 -29.4 Fidelity China Special Situations 133.50 -9.2 -0.2 Int Biotechnology Trust 581.00 -6.3 31.2 Life Insurance 7981.06 -1.5 5.8
Ensco 16.63 -1.37 -7.61 Premier Farnell 134.20 -5.80 -4.14 Natixis 6.53 -0.29 -4.20 Mitsubishi Electric 1374.00 -82.50 -5.66
Dixons Carphone 448.90 -4.1 -2.9 Barr (a.g.) 576.00 -9.0 -2.4 Jpmorgan Chinese Investment Trust 166.00 -6.2 -6.7 Mining 11289.51 -1.5 -20.8
L 3 Communications Hldgs. 114.75 -9.29 -7.49 Countrywide 531.00 -22.00 -3.98 Altice 114.50 -4.80 -4.02 Astellas Pharma . 1852.00 -78.50 -4.07
Merlin Entertainments 414.00 -4.1 3.9 Ocado 387.60 -8.4 -3.1 Pacific Horizon Investment Trust 181.63 -6.1 -0.9 General Financial 9417.28 -1.5 10.4
Range Resources 39.85 -2.79 -6.54 Vedanta Resources 385.00 -13.50 -3.39 Repsol 15.37 -0.64 -4.00 Daiichi Sankyo , 2519.50 -102.00 -3.89
Kingfisher 359.30 -4.0 5.5 Enterprise Inns 113.60 -6.8 -0.9 Petropavlovsk 5.99 -6.1 -59.4 Construction & Materials 4965.68 -1.0 20.2
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
Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 9.1825 -0.0002 10.0315 -0.0989 14.3354 -0.0368 Indonesia Indonesian Rupiah 13467.5000 11.5000 14712.6329 -132.0913 21024.9229 -35.6451 Poland Polish Zloty 3.7998 0.0588 4.1511 0.0240 5.9321 0.0768 ..Three Month 0.6405 0.0016 0.6996 -0.0051 - -
Australia Australian Dollar 1.3746 0.0063 1.5017 -0.0078 2.1459 0.0044 Israel Israeli Shekel 3.7882 0.0127 4.1385 -0.0267 5.9141 0.0049 Romania Romanian Leu 4.0332 0.0270 4.4061 -0.0136 6.2965 0.0262 ..One Year 0.6403 0.0017 0.6991 -0.0051 - -
Bahrain Bahrainin Dinar 0.3771 - 0.4119 -0.0041 0.5886 -0.0015 Japan Japanese Yen 124.3350 0.5150 135.8303 -0.7685 194.1066 0.3108 Russia Russian Ruble 59.6015 0.3560 65.1119 -0.2480 93.0474 0.3198 United States United States Dollar - - 1.0925 -0.0108 1.5612 -0.0040
Bolivia Bolivian Boliviano 6.9100 0.0100 7.5489 -0.0633 10.7876 -0.0119 ..One Month 124.3350 0.5149 135.8303 -0.7685 194.1065 0.3107 Saudi Arabia Saudi Riyal 3.7502 0.0001 4.0969 -0.0402 5.8547 -0.0148 ..One Month - - 1.0924 -0.4727 1.5611 -0.0040
Brazil Brazilian Real 3.3734 0.0342 3.6853 0.0015 5.2664 0.0401 ..Three Month 124.3348 0.5147 135.8303 -0.7685 194.1063 0.3101 Singapore Singapore Dollar 1.3758 0.0097 1.5029 -0.0041 2.1478 0.0096 ..Three Month - - 1.0923 -0.4727 1.5611 -0.0040
Canada Canadian Dollar 1.3031 0.0133 1.4236 0.0007 2.0343 0.0156 ..One Year 124.3339 0.5128 135.8303 -0.7686 194.1065 0.3087 South Africa South African Rand 12.7363 0.2360 13.9138 0.1234 19.8833 0.3186 ..One Year - - 1.0915 -0.4727 1.5609 -0.0040
Chile Chilean Peso 672.5600 6.0900 734.7412 -0.5118 1049.9727 6.8531 Kenya Kenyan Shilling 102.3000 0.6000 111.7581 -0.4378 159.7065 0.5316 South Korea South Korean Won 1168.2500 9.7500 1276.2600 -1.8029 1823.8234 10.6072 Venezuela Venezuelan Bolivar Fuerte 6.3053 0.0103 6.8882 -0.0565 9.8435 -0.0091
China Chinese Yuan 6.2096 0.0005 6.7837 -0.0662 9.6942 -0.0239 Kuwait Kuwaiti Dinar 0.3032 0.0004 0.3312 -0.0029 0.4733 -0.0007 Sweden Swedish Krona 8.6375 0.0452 9.4360 -0.0430 13.4844 0.0363 Vietnam Vietnamese Dong 21818.0000 -1.5000 23835.1750 -236.2111 34061.4537 -89.2191
Colombia Colombian Peso 2861.2250 -0.0250 3125.7580 -30.7877 4466.8262 -11.4341 Malaysia Malaysian Ringgit 3.8160 0.0050 4.1688 -0.0355 5.9574 -0.0074 Switzerland Swiss Franc 0.9697 0.0067 1.0593 -0.0030 1.5138 0.0066 European Union Euro 0.9154 0.0089 - - 1.4290 0.0103
Costa Rica Costa Rican Colon 533.4000 0.0500 582.7152 -5.6791 832.7219 -2.0462 Mexico Mexican Peson 16.4718 0.2471 17.9946 0.0955 25.7150 0.3211 Taiwan New Taiwan Dollar 31.4750 0.0330 34.3850 -0.3020 49.1375 -0.0737 ..One Month 0.9153 0.0089 - - 1.4290 0.0103
Czech Republic Czech Koruna 24.7549 0.1886 27.0436 -0.0580 38.6463 0.1967 New Zealand New Zealand Dollar 1.5195 0.0225 1.6600 0.0085 2.3722 0.0292 Thailand Thai Baht 34.9500 - 38.1813 -0.3757 54.5625 -0.1392 ..Three Month 0.9152 0.0089 - - 1.4289 0.0103
Denmark Danish Krone 6.8295 0.0663 7.4609 -0.0003 10.6619 0.0766 Nigeria Nigerian Naira 199.0000 -0.2500 217.3984 -2.4151 310.6705 -1.1839 Tunisia Tunisian Dinar 1.9771 0.0141 2.1598 -0.0056 3.0865 0.0143 ..One Year 0.9144 0.0089 - - 1.4283 0.0103
Egypt Egyptian Pound 7.8290 0.0252 8.5528 -0.0564 12.2223 0.0083 Norway Norwegian Krone 8.1681 0.0363 8.9233 -0.0478 12.7518 0.0243 Turkey Turkish Lira 2.7858 0.0263 3.0433 -0.0009 4.3490 0.0301
Hong Kong Hong Kong Dollar 7.7522 0.0006 8.4689 -0.0827 12.1023 -0.0299 Pakistan Pakistani Rupee 101.7750 -0.0200 111.1845 -1.1162 158.8869 -0.4367 United Arab Emirates UAE Dirham 3.6731 - 4.0126 -0.0395 5.7342 -0.0146
Hungary Hungarian Forint 283.0657 3.2886 309.2363 0.5849 441.9103 4.0197 Peru Peruvian Nuevo Sol 3.1920 0.0070 3.4871 -0.0265 4.9831 -0.0017 United Kingdom Pound Sterling 0.6406 0.0016 0.6998 -0.0051 - -
India Indian Rupee 64.0150 0.1588 69.9335 -0.5131 99.9376 -0.0065 Philippines Philippine Peso 45.6275 0.1025 49.8460 -0.3774 71.2318 -0.0213 ..One Month 0.6405 0.0016 0.6997 -0.0051 - -
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 Jul 30 Jul 29 Jul 28 Jul 27 Jul 24 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2933.90 2935.70 2904.80 2865.80 2907.70 0.00 3110.40 2669.30 Forestry & Paper 42.19 Personal Goods 8.19 NON FINANCIALS Index 0.54 FTSE 100 Price Change FTSE 100 Price Change
Jul 30 chge% Index Jul 29 Jul 28 ago yield% Cover ratio adj Return FT 30 Div Yield 1.71 1.72 1.73 1.75 1.74 0.00 3.93 2.74 Software & Comp Serv 24.94 Travel & Leisure 7.79 Health Care 0.49 3I Group PLC 545.00 -1.00 Land Securities Group PLC 1283 -10.00
FTSE 100 (100) 6668.87 0.57 7422.86 6631.00 6555.28 6730.11 3.64 1.53 17.91 145.19 5141.38 P/E Ratio net 26.07 26.00 25.76 25.49 25.70 0.00 19.44 14.26 Household Goods & Ho 21.05 FTSE SmallCap Index 7.79 Food Producers 0.46 Aberdeen Asset Management PLC 363.30 -4.70 Legal & General Group PLC 260.10 1.20
FTSE 250 (250) 17521.00 0.05 19501.94 17512.81 17387.89 15495.64 2.42 2.28 18.13 262.66 12064.96 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Construct & Material 20.42 Industrial Transport 7.63 Pharmace & Biotech 0.46 Admiral Group PLC 1468 -23.00 Lloyds Banking Group PLC 86.02 0.42
FTSE 250 ex Inv Co (212) 19077.93 0.09 21234.90 19060.77 18910.74 16768.18 2.44 2.39 17.18 285.03 13392.77 FT 30 hourly changes Real Est Invest & Se 20.16 Mobile Telecomms 7.50 Leisure Goods 0.38 Anglo American PLC 805.70 -7.90 London Stock Exchange Group PLC 2592 19.00
FTSE 350 (350) 3693.79 0.48 4111.42 3676.10 3636.83 3649.78 3.43 1.62 17.95 76.21 5745.24 8 9 10 11 12 13 14 15 16 High Low Nonlife Insurance 16.93 Consumer Goods 7.00 FTSE 100 Index 0.21 Antofagasta PLC 580.50 -4.50 Marks And Spencer Group PLC 533.00 2.00
FTSE 350 ex Investment Trusts (312) 3672.82 0.50 4088.07 3654.65 3614.91 3634.17 3.45 1.63 17.80 76.19 2941.00 2935.7 2933.5 2936 2941.6 2944 2940.2 2942.2 2925.5 2928.2 2956.1 2920.9 Fixed Line Telecomms 15.14 Tobacco 5.90 Chemicals -2.52 Arm Holdings PLC 1011 21.00 Meggitt PLC 455.80 0.30
FTSE 350 Higher Yield (108) 3433.85 0.81 3822.08 3406.36 3360.20 3688.63 4.99 1.35 14.85 103.44 5445.37 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Media 12.69 Life Insurance 5.56 Gas Water & Multi -6.06 Ashtead Group PLC 964.00 -1.50 Merlin Entertainments PLC 414.00 -3.60
FTSE 350 Lower Yield (242) 3596.49 0.14 4003.11 3591.59 3564.12 3252.84 1.76 2.46 23.09 41.40 3772.44 Food & Drug Retailer 12.08 Financials 5.41 Industrial Eng -6.23 Associated British Foods PLC 3159 8.00 Mondi PLC 1529 -14.00
FTSE SmallCap (294) 4699.53 0.04 5230.87 4697.75 4656.45 4410.00 2.65 1.78 21.29 74.99 6367.44 Financial Services 11.33 Electronic & Elec Eq 4.92 Utilities -7.24
FTSE SmallCap ex Inv Co (157) 4243.90 0.12 4723.72 4238.82 4192.85 3943.12 2.50 2.68 14.94 68.66 6043.67 FX: EFFECTIVE INDICES Technology 11.32 Industrials 4.65 Aerospace & Defense -8.76
Astrazeneca PLC 4319.5 128.50 Morrison (Wm) Supermarkets PLC 181.10 0.60
Aviva PLC 518.50 1.00 National Grid PLC 842.70 3.50
FTSE All-Share (644) 3635.28 0.47 4046.29 3618.45 3580.04 3585.62 3.40 1.63 18.05 74.42 5720.51 Real Est Invest & Tr 11.09 Equity Invest Instr 4.26 Oil & Gas -10.22
Jul 29 Jul 28 Mnth Ago Jul 30 Jul 29 Mnth Ago Babcock International Group PLC 985.50 -53.50 Next PLC 7885 75.00
FTSE All-Share ex Inv Co (469) 3600.81 0.49 4007.93 3583.27 3544.31 3558.56 3.44 1.64 17.73 74.38 2931.34 Telecommunications 10.33 Tech Hardware & Eq 2.38 Oil & Gas Producers -10.64 Bae Systems PLC 473.10 3.50 Old Mutual PLC 212.80 1.50
FTSE All-Share ex Multinationals (580) 1248.18 -0.08 1151.47 1249.20 1238.35 1099.18 2.58 2.07 18.72 20.64 2104.20 Australia 92.60 92.56 96.30 Sweden 77.23 77.34 78.93 Consumer Services 9.98 Oil Equipment & Serv 1.83 Electricity -11.40 Barclays PLC 287.05 2.45 Pearson PLC 1193 -3.00
FTSE Fledgling (110) 7978.99 0.00 8881.11 7978.89 7984.71 6862.17 2.28 3.70 11.87 98.74 14233.83 Canada 91.15 90.54 94.81 Switzerland 162.48 162.04 165.98 FTSE 250 Index 8.79 FTSE All{HY-}Share Index 1.79 Automobiles & Parts -13.31 Barratt Developments PLC 625.50 3.00 Persimmon PLC 1986 12.00
FTSE Fledgling ex Inv Co (58) 10923.99 0.03 12159.07 10920.44 10920.71 8410.00 2.20 7.09 6.40 114.30 18932.56 Denmark 105.61 105.72 105.26 UK 93.92 93.51 93.46 General Retailers 8.43 Banks 1.47 Basic Materials -18.93 Bg Group PLC 1079.5 39.50 Prudential PLC 1520 18.50
FTSE All-Small (404) 3261.01 0.04 3629.70 3259.83 3232.83 3047.36 2.63 1.86 20.43 51.47 5673.62 Japan 123.26 123.48 122.29 USA 104.03 104.18 102.48 Support Services 8.23 Beverages 0.82 Mining -22.65 Bhp Billiton PLC 1170 2.00 Randgold Resources LD 3813 -
FTSE All-Small ex Inv Co Index (215) 3168.75 0.12 3527.02 3165.08 3132.27 2920.12 2.49 2.85 14.11 50.43 5717.45 New Zealand 113.30 113.20 114.42 Euro 85.63 85.84 85.63 Health Care Eq & Srv 0.73 Industrial Metals & -28.62 BP PLC 401.00 2.40 Reckitt Benckiser Group PLC 6104 11.00
FTSE AIM All-Share Index (828) 750.17 0.14 834.98 749.16 749.16 768.56 1.42 1.37 51.50 5.39 802.74 Norway 89.25 88.62 91.20
British American Tobacco PLC 3740 59.50 RELX PLC 1097 -4.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British Land Company PLC 829.50 -6.00 Rio Tinto PLC 2456.5 2.50
Oil & Gas (18) 7022.49 2.97 7816.46 6819.96 6722.39 9060.81 5.38 1.09 17.08 188.83 5724.48 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bt Group PLC 467.95 -5.55 Rolls-Royce Holdings PLC 749.50 19.00
Oil & Gas Producers (11) 6646.50 3.05 7397.96 6449.78 6360.53 8572.25 5.42 1.07 17.17 178.25 5600.04 Bunzl PLC 1820 16.00 Royal Bank Of Scotland Group PLC 342.40 -10.80
Oil Equipment Services & Distribution (7)18062.68 1.01 20104.86 17882.85 17422.47 23670.57 4.20 1.58 15.04 515.61 13070.90 FTSE GLOBAL EQUITY INDEX SERIES Burberry Group PLC 1564 4.00 Royal Dutch Shell PLC 1861 84.00
Basic Materials (31) 3921.57 -0.27 4364.95 3932.10 3875.40 5731.74 4.95 2.60 7.78 116.02 3759.86 Capita PLC 1279 8.00 Royal Dutch Shell PLC 1839 74.50
Chemicals (8) 11964.06 0.09 13316.73 11953.45 11797.03 10417.29 2.26 2.41 18.37 188.19 10240.46 Jul 30 No of US $ Day Mth YTD Total
YTD Gr Div Jul 30 No of US $ Day Mth YTD Total YTD Gr Div Carnival PLC 3376 -57.00 Royal Mail PLC 492.80 0.40
Forestry & Paper (1) 17971.15 -0.91 20002.99 18135.70 17806.60 12258.93 2.04 3.38 14.55 241.11 18544.30 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Centrica PLC 266.60 -8.60 Rsa Insurance Group PLC 517.00 -1.00
Industrial Metals & Mining (2) 1072.18 -1.77 1193.40 1091.48 1044.65 1226.31 1.04 -21.67 -4.45 5.46 930.58 FTSE Global All Cap 7613 480.44 0.8 0.3 3.82.2 651.20
2.4 Oil & Gas 165 359.46 1.6 1.6 -9.7 540.00 -8.0 3.9 Coca-Cola Hbc AG 1307 2.00 Sabmiller PLC 3390.5 7.50
Mining (20) 10809.71 -0.28 12031.87 10839.57 10685.18 17225.71 5.53 2.62 6.91 352.71 5406.18 FTSE Global All Cap 6977 493.32 0.8 0.1 3.31.9 656.59
2.3 Oil & Gas Producers 116 327.15 1.7 1.7 -9.7 499.77 -8.0 4.0 Compass Group PLC 1031 3.00 Sage Group PLC 515.00 0.50
FTSE Global Large Cap 1361 425.36 0.8 0.8 3.72.0 589.38
2.5 Oil Equipment & Services 40 375.27 1.5 1.5 -9.5 515.47 -7.8 3.6 Crh PLC 1879 -9.00 Sainsbury (J) PLC 260.80 -0.80
Industrials (117) 4515.87 0.23 5026.43 4505.41 4472.31 4307.51 2.44 1.30 31.43 69.38 4440.92
Construction & Materials (13) 5154.31 -0.51 5737.06 5180.94 5094.69 4081.21 2.50 -0.40 -100.19 79.41 5225.08 FTSE Global Mid Cap 1666 634.73 0.8 -0.6 4.02.8 822.84
1.9 Basic Materials 273 403.70 1.1 1.1 -7.3 585.27 -5.6 3.1 Diageo PLC 1811 -28.50 Schroders PLC 3110 18.00
Aerospace & Defense (9) 4590.98 1.46 5110.04 4524.90 4494.50 5050.50 2.44 1.13 36.14 69.13 4699.41 FTSE Global Small Cap 4586 671.27 0.9 -1.4 4.02.9 844.73
1.9 Chemicals 124 634.86 0.8 0.8 1.8 926.08 3.5 2.4 Direct Line Insurance Group PLC 364.60 -3.10 Severn Trent PLC 2196 -2.00
General Industrials (6) 3612.31 -0.02 4020.72 3613.19 3606.74 3304.10 3.13 1.79 17.85 48.72 3856.46 FTSE All-World 3027 280.79 0.8 0.5 3.72.2 401.44
2.4 Forestry & Paper 17 217.86 -0.6 -0.6 4.6 345.83 6.6 2.7 Dixons Carphone PLC 448.90 -6.60 Shire PLC 5590 -110.00
Electronic & Electrical Equipment (11) 5541.87 3.91 6168.44 5333.40 5277.30 4837.70 2.09 2.01 23.78 74.00 4862.32 FTSE World 2532 497.05 0.8 0.9 3.82.3 953.96
2.4 Industrial Metals & Mining 71 323.62 1.6 1.6 -21.5 471.10 -20.1 3.0 Easyjet PLC 1644 -39.00 Sky PLC 1119 -13.00
Industrial Engineering (14) 8808.23 0.71 9804.10 8746.26 8714.65 10541.27 2.75 1.77 20.54 160.88 10210.82 FTSE Global All Cap ex UNITED KINGDOM In 7283 491.97 0.7 0.4 3.72.2 657.88
2.3 Mining 61 447.23 1.8 1.8 -21.5 641.73 -19.7 5.2 Experian PLC 1176 -4.00 Smith & Nephew PLC 1167 32.00
Industrial Transportation (8) 4351.21 -0.24 4843.16 4361.74 4333.17 4075.22 3.75 1.20 22.19 116.47 3614.19 FTSE Global All Cap ex USA 5641 455.37 0.9 -1.5 3.81.8 654.60
2.8 Industrials 533 312.69 0.8 0.8 -0.6 430.74 0.7 2.1 Fresnillo PLC 645.00 -1.00 Smiths Group PLC 1135 12.00
Support Services (56) 6820.31 -0.41 7591.42 6848.68 6802.27 6180.43 2.23 1.53 29.27 100.20 6778.65 FTSE Global All Cap ex JAPAN 6358 490.68 0.9 0.4 3.01.4 670.90
2.4 Construction & Materials 110 446.56 0.9 0.9 3.5 645.98 5.2 2.1 G4S PLC 273.00 0.90 Sports Direct International PLC 779.50 -2.50
FTSE Developed 2091 451.22 0.8 1.2 4.52.9 616.00
2.4 Aerospace & Defense 29 506.14 1.8 1.8 1.8 691.12 3.0 2.1 Gkn PLC 315.90 -5.70 Sse PLC 1510 4.00
Consumer Goods (40) 17576.97 0.26 19564.24 17531.49 17264.94 15486.20 2.96 1.85 18.30 283.90 12213.79
FTSE Developed All Cap 5661 473.71 0.8 1.0 4.53.0 639.89
2.3 General Industrials 57 215.27 0.7 0.7 -1.0 317.91 0.5 2.6 Glaxosmithkline PLC 1389 14.50 St. James's Place PLC 971.50 -1.50
Automobiles & Parts (1) 7423.80 -1.77 8263.14 7557.75 7440.25 8046.56 2.66 1.61 23.35 131.60 6761.79
FTSE Developed Large Cap 885 418.20 0.8 1.5 4.42.8 578.40
2.5 Electronic & Electrical Equipment 69 329.50 -0.1 -0.1 1.3 418.62 2.3 1.7 Glencore PLC 211.00 -2.00 Standard Chartered PLC 983.10 0.90
Beverages (6) 14098.09 -0.80 15692.03 14211.12 14049.92 13827.21 2.49 1.89 21.27 105.50 9415.20
FTSE Developed Europe Large Cap 204 366.47 1.0 1.0 6.33.6 572.66
3.3 Industrial Engineering 103 592.13 -0.4 -0.4 -4.2 802.51 -2.8 2.2 Hammerson PLC 655.00 -5.50 Standard Life PLC 451.90 5.90
Food Producers (10) 8282.51 -0.03 9218.94 8284.82 8194.99 7538.99 1.95 1.57 32.58 91.21 6875.54
FTSE Developed Europe Mid Cap 310 538.27 0.7 0.3 9.77.6 767.13
2.4 Industrial Transportation 94 552.96 1.3 1.3 -7.4 759.39 -6.3 2.2 Hargreaves Lansdown PLC 1182 8.00 Taylor Wimpey PLC 190.40 5.00
Household Goods & Home Construction (13)13264.09 0.53 14763.75 13194.53 13133.38 9811.17 2.15 2.46 18.94 132.98 8918.25
FTSE Dev Europe Small Cap 723 758.05 1.0 1.7 12.010.1 1051.58
2.2 Support Services 71 284.30 1.4 1.4 4.3 376.83 5.5 1.8 Hikma Pharmaceuticals PLC 2405 -2.00 Tesco PLC 214.65 1.65
Leisure Goods (2) 5352.21 -0.90 5957.34 5400.95 5231.90 5445.79 3.95 1.35 18.74 109.73 4428.14
FTSE North America Large Cap 318 454.05 0.8 2.5 3.32.1 591.78
2.2 Consumer Goods 406 423.32 0.8 0.8 4.5 596.24 6.1 2.3 HSBC Holdings PLC 577.10 0.60 Travis Perkins PLC 2194 -1.00
Personal Goods (6) 23217.54 0.63 25842.54 23072.16 22984.12 19613.47 2.84 2.97 11.86 342.75 14780.18
FTSE North America Mid Cap 400 678.86 1.0 -0.3 0.90.1 831.44
1.6 Automobiles & Parts 98 390.06 0.4 0.4 0.1 528.10 1.6 2.3 Imperial Tobacco Group PLC 3349 -16.00 Tui AG 1071 -
Tobacco (2) 44781.79 0.95 49844.86 44362.44 42972.31 39390.35 4.12 1.31 18.53 1291.78 26856.95
FTSE North America Small Cap 1487 699.63 1.0 -1.3 2.41.6 833.87
1.6 Beverages 48 556.49 0.8 0.8 3.4 792.31 4.8 2.5 Inmarsat PLC 885.00 -15.00 Unilever PLC 2889 20.00
Health Care (20) 9569.21 1.03 10651.12 9471.70 9295.24 9235.00 3.58 0.65 42.66 203.85 6870.01
FTSE North America 718 304.07 0.8 2.0 2.91.7 406.28
2.1 Food Producers 102 571.96 0.9 0.9 3.6 832.69 5.4 2.2 Intercontinental Hotels Group PLC 2743 120.00 United Utilities Group PLC 883.00 -0.50
Health Care Equipment & Services (8) 6954.08 1.81 7740.31 6830.15 6765.65 5834.62 1.46 2.19 31.27 60.90 5859.03
FTSE Developed ex North America 1373 244.49 0.7 0.1 6.84.8 377.02
2.8 Household Goods & Home Construction 44 407.16 0.7 0.7 2.8 571.15 4.4 2.3 International Consolidated Airlines Group S.A. 542.00 -9.00 Vodafone Group PLC 241.05 0.10
Pharmaceuticals & Biotechnology (12)12997.24 0.96 14466.73 12874.18 12623.24 12698.03 3.78 0.60 44.18 292.29 8281.71
FTSE Japan Large Cap 174 340.12 0.0 -0.7 12.611.5 421.34
1.7 Leisure Goods 26 136.05 1.4 1.4 8.0 173.33 8.6 1.2 Intertek Group PLC 2438 19.00 Weir Group PLC 1555 24.00
Consumer Services (98) 4999.80 -0.11 5565.08 5005.12 4974.96 4273.33 2.17 1.94 23.74 72.84 4473.63 FTSE Japan Mid Cap 305 491.95 0.3 0.4 16.715.7 589.97
1.4 Personal Goods 76 636.64 1.0 1.0 9.2 855.78 10.4 1.9
Food & Drug Retailers (7) 3279.68 0.52 3650.48 3262.63 3236.59 3494.91 2.15 0.50 93.70 41.87 3735.43 Intu Properties PLC 326.50 -6.20 Whitbread PLC 5145 -
FTSE Global wi JAPAN Small Cap 776 516.25 0.0 -0.5 11.210.1 638.73
1.6 Tobacco 12 1191.22 0.8 0.8 11.0 2284.00 13.6 3.9 Itv PLC 271.60 -4.60 Wolseley PLC 4210 -8.00
General Retailers (33) 3151.63 0.32 3507.95 3141.51 3113.34 2593.53 2.04 2.35 20.87 42.55 3418.93
FTSE Japan 479 140.45 0.1 -0.5 13.4 1.7 Health Care
12.3 195.59 159 490.63 0.6 0.6 12.9 678.95 14.3 1.7 Johnson Matthey PLC 2891 -6.00 Wpp PLC 1461 -5.00
Media (23) 7479.34 -0.52 8324.96 7518.56 7382.15 6205.85 2.60 1.71 22.49 129.46 4368.03
FTSE Asia Pacific Large Cap ex Japan 491 590.36 0.6 -4.4 -4.1 871.54
-2.3 3.1 Health Care Equipment & Services 58 666.18 0.4 0.4 12.8 760.57 13.4 1.1 Kingfisher PLC 359.30 -3.20
Travel & Leisure (35) 8346.91 -0.23 9290.62 8366.23 8426.23 6863.87 1.88 2.50 21.30 112.01 7550.63
FTSE Asia Pacific Mid Cap ex Japan 441 787.26 0.4 -5.1 -2.3 1121.13
-0.9 2.7 Pharmaceuticals & Biotechnology 101 377.41 0.6 0.6 13.0 542.29 14.6 1.9
Telecommunications (8) 4147.52 -0.54 4616.45 4170.17 4091.20 3440.66 3.80 1.93 13.65 82.62 4260.27 FTSE Asia Pacific Small Cap ex Japan 1374 527.31 0.3 -6.5 -1.3 741.30
0.1 2.7 Consumer Services 386 407.54 0.9 0.9 8.9 525.95 10.0 1.6
Fixed Line Telecommunications (6) 5382.71 -1.28 5991.28 5452.24 5371.82 4527.08 2.59 1.97 19.54 15.48 4548.69
Mobile Telecommunications (2) 5435.55 -0.06 6050.10 5438.80 5320.75 4468.93 4.59 1.91 11.41 168.70 5001.50
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
932
1952
466.55
650.78
0.6
1.0
-4.5
-6.5
-3.9 732.09
-2.2 3.0 Food & Drug Retailers
-5.6 919.75
-3.7 3.1 General Retailers
54 328.79
120 533.11
0.8
1.0
0.8
1.0
9.3 441.54
11.5 671.37
10.5
12.5
1.7
1.5
UK STOCK MARKET TRADING DATA
Utilities (8) 8212.93 -0.32 9141.49 8238.96 8179.37 8571.26 5.03 1.35 14.72 295.54 8630.87 FTSE Emerging Large Cap 476 620.33 1.1 -6.4 -5.1 882.34
-3.2 3.1 Media 91 322.19 1.0 1.0 7.1 416.76 8.3 1.7 Jul 30 Jul 29 Jul 28 Jul 27 Jul 24 Yr Ago
Electricity (3) 8762.87 0.33 9753.60 8734.22 8724.01 9427.45 5.79 1.43 12.09 493.70 11641.50 FTSE Emerging Mid Cap 460 796.96 0.8 -6.1 -7.5 1120.64
-5.8 2.8 Travel & Leisure 121 384.79 0.7 0.7 6.9 501.26 8.0 1.6 SEAQ Bargains 4078.00 4765.00 5194.00 5374.00 5374.00 5374.00
Gas Water & Multiutilities (5) 7632.81 -0.49 8495.79 7670.38 7602.35 7898.67 4.82 1.33 15.65 232.42 8028.41 FTSE Emerging Small Cap 1016 660.14 0.9 -7.3 -6.7 897.62
-5.1 2.9 Telecommunication 93 171.88 1.3 1.3 2.9 298.08 5.6 3.9 Order Book Turnover (m) 38.34 42.33 36.84 - - -
Financials (283) 4913.55 0.12 5469.08 4907.84 4879.36 4549.32 3.19 1.90 16.51 104.17 4236.71 FTSE Emerging Europe 98 311.88 2.0 -5.7 3.40.1 454.15
4.5 Fixed Line Telecommuniations 43 140.65 1.2 1.2 2.7 266.41 5.8 4.4 Order Book Bargains 861907.00 843317.00 778484.00 - - -
Banks (9) 4434.77 0.23 4936.17 4424.54 4388.06 4438.58 3.70 1.29 20.88 107.97 3010.22 FTSE Latin America All Cap 243 752.64 2.1 -8.0 -16.5 1098.44
-15.1 3.5 Mobile Telecommunications 50 186.77 1.4 1.4 3.2 294.27 5.4 3.3 Order Book Shares Traded (m) 1356.00 1287.00 1199.00 - - -
Nonlife Insurance (10) 2656.33 -0.64 2956.65 2673.44 2672.81 2160.34 2.58 1.48 26.20 46.33 4415.80 FTSE Middle East and Africa All Cap 214 774.90 1.8 0.9 2.3 2.7 Utilities
0.7 1141.35 163 249.23 0.4 0.4 -6.7 450.10 -4.6 3.9 Total Equity Turnover (£m) 2098.24 0.09 0.05 0.23 0.23 0.23
Life Insurance/Assurance (11) 8096.08 0.76 9011.43 8034.93 8030.70 7259.07 3.32 1.75 17.18 200.42 7344.27 FTSE Global wi UNITED KINGDOM All Cap In 330 368.28 1.6 -0.5 4.6 3.5 Electricity
2.5 573.09 113 268.63 0.3 0.3 -5.3 480.38 -3.2 3.7 Total Mkt Bargains 965023.00 3.00 6.00 3.00 3.00 3.00
Index- Real Estate Investment & Services (24) 3242.32 -0.25 3608.90 3250.29 3190.15 2596.00 1.73 5.89 9.80 34.10 8262.60 FTSE Global wi USA All Cap 1972 522.48 0.8 2.0 3.8 1.9 Gas Water & Multiutilities
2.7 663.46 50 270.41 0.5 0.5 -9.1 500.03 -6.9 4.2 Total Shares Traded (m) 3395.00 0.00 0.00 0.00 0.00 0.00
Real Estate Investment Trusts (23) 3047.15 -0.64 3391.67 3066.64 3051.89 2524.85 2.68 6.75 5.53 55.07 3562.29 FTSE Europe All Cap 1390 417.18 1.0 0.7 7.2 3.1 Financials
4.7 632.68 667 219.92 0.8 0.8 1.9 338.19 3.8 2.7 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (31) 8062.14 -0.08 8973.65 8068.84 8011.54 6607.93 2.80 2.16 16.57 135.72 8658.98 FTSE Eurobloc All Cap 636 388.67 0.4 1.7 8.0 2.9 Banks
5.5 597.84 241 203.75 0.9 0.9 1.3 333.55 3.5 3.1 (c) Market closed.
Equity Investment Instruments (175) 7755.34 -0.17 8632.17 7768.53 7738.36 7249.63 2.52 1.15 34.56 120.30 4034.89 FTSE RAFI All World 3000 3022 5904.37 0.9 -0.9 2.1 3.0 Nonlife Insurance
0.2 7355.71 69 220.61 0.5 0.5 3.0 305.47 4.8 2.2
Non Financials (361) 4177.13 0.59 4649.40 4152.56 4101.24 4210.46 3.48 1.54 18.68 84.43 5757.33 FTSE RAFI US 1000 1007 9271.23 0.9 0.9 -0.2 11589.32
1.1 2.4 Life Insurance 49 219.74 1.1 1.1 4.1 330.13 5.9 2.5
Technology (21) 1372.22 1.46 1527.36 1352.43 1350.43 1084.31 1.31 2.22 34.31 13.08 1707.34 FTSE EDHEC-Risk Efficient All-World 3027 330.74 0.8 0.6 4.8 2.2 Financial Services
3.5 440.77 137 239.22 0.9 0.9 3.3 316.02 4.4 1.8 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1677.27 0.35 1866.90 1671.36 1674.49 1251.57 1.88 1.75 30.24 24.46 2185.11 FTSE EDHEC-Risk Efficient Developed Europe 514 294.21 0.9 0.9 7.7 2.6 Technology
5.6 426.97 182 174.33 0.4 0.4 1.3 206.48 2.3 1.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (8) 1575.10 2.35 1753.18 1539.00 1532.64 1298.21 0.87 3.00 38.34 8.51 1800.95 Software & Computer Services 79 293.68 0.8 0.8 8.2 335.46 8.9 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 103 133.75 0.0 0.0 -4.5 162.54 -3.2 2.3 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6673.31 6635.22 6650.36 6671.46 6685.16 6678.67 6689.34 6653.33 6659.06 6697.20 6633.73 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
FTSE 250 17573.06 17547.74 17558.66 17557.50 17530.15 17510.35 17533.17 17468.13 17500.06 17636.85 17438.04 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4703.19 4701.01 4701.92 4703.45 4701.66 4701.20 4700.56 4698.11 4700.17 4704.57 4697.36
FTSE All-Share 3639.09 3621.57 3628.57 3637.76 3642.75 3639.23 3644.64 3626.65 3630.31 3648.15 3620.26 www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:12:53:15 Day's Low08:00:15 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 6366.51(06/01/2015) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:12:53:00 Day's Low13:50:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3434.73(06/01/2015)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing BAE Systems Int 8001 7122 508 541 12.3 13.5 8.4 8.2 Nov 30 20.7 20.3 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Barclays Int 13163 12538 3114 2501 9.9 7 1 1 Sep 14 4.5 4.5 07/10 139.00 KNOS Kainos Group PLC 187.00 0.00 198.68 165.00 22057.7
There are currently no rights offers by any companies listed on the LSE. BT Group 1st 4360 4354 632 546 6.1 5.6 - - - - - 07/03 10.00 AIM KCR K&C REIT PLC 10.13 0.00 10.50 9.50 443.3
Centrica Int 15451 15748 1208 890 21.1 10.5 3.57 5.1 Nov 26 11.97 17.18
Diageo Pre 10813 10258 2933 2711 95 89.7 34.9 32 Oct 8 56.4 51.7
InterContinental Hotels Group Int 915 908 458 377 1.562 0.93 27.833 25.207 Oct 2 80.4 75.4
Intu Properties Int 281.9 261.5 265.6 602 20.4 51.8 4.6 4.6 Nov 24 13.7 14.6
Merlin Entertainments Int 544 513 36 40 2.5 2.8 2.1 2 Sep 24 6.3 2
Rolls-Royce Holdings Int 6370 6249 310 713 19.51 29.06 - 9 - - 22.4
Royal Bank of Scotland Group (The) Int 7577 8384 293 2226 1.3L 12.6 - - - - -
Royal Dutch Shell Int 138108 220880 11411 17668 1.34 1.56 47 49.545 Sep 21 96.545 185
Schroders Int 1022.4 954.4 290.3 233.9 84 69 29 24 Sep 24 83 66
Sky Pre 9989 7450 1516 1025 115.8 55.4 20.5 20 Nov 20 32.8 32
Weir Group Int 999.7 1143.7 38.7 157.7 17.5 53.8 15 15 Nov 6 44 48.2

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.
Friday 31 July 2015 ★★ FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) AXA 24.15 0.16 24.88 16.43 3.72 10.54 64479.73 Denso 5988 127.00 6548 4466.5 2.00 16.95 42576.93 SEB 103.60 -0.60 111.50 82.30 4.74 11.17 26295.47 Biogen 317.00 3.66 480.18 290.85 - 21.61 74548.64 Lyondell 94.15 0.39 115.40 70.06 3.04 10.85 43862.1
ANZ 32.47 0.22 37.25 30.47 8.65 11.25 66015.37 BNP Parib 57.66 1.43 59.69 43.14 2.69 427.51 78498.42 EastJpRwy 12100 260.00 12280 7623 1.08 24.18 38294.53 SvnskaHn 131.20 0.10 426.00 117.10 3.28 16.37 28967.11 BkNYMeln♦ 43.93 0.32 44.99 35.06 1.63 18.51 49268.01 Marathon Ptl 53.94 -1.87 60.38 37.32 1.87 9.00 14652.11
BHPBilltn 26.50 0.61 39.74 24.90 8.90 10.66 61917.42 ChristianDior 185.35 0.20 192.80 126.10 1.85 12.85 36797.26 Fanuc 20745 45.00 28575 17130 3.35 17.93 34360.97 Swedbank 200.00 -0.60 223.90 166.20 5.86 13.19 25595.59 BlackRock 338.75 -1.09 382.84 293.39 2.47 16.35 55763.76 Marsh&M♦ 58.14 0.19 59.99 48.66 1.97 20.55 31303.04
CmwBkAu 87.08 0.48 96.69 73.57 7.41 14.31 103109.17 Cred Agr 14.24 0.05 14.49 9.80 2.54 14.80 41035.34 FastRetail 61930 1700 61970 32030 0.54 51.50 52834.21 TeliaSonera 52.45 0.30 55.85 45.36 5.91 15.72 26293.96 Boeing 143.01 -1.13 158.83 116.32 2.28 19.57 97174.6 MasterCard♦ 98.41 1.68 98.82 69.64 0.60 30.41 109836.72
CSL 96.35 -1.35 98.64 63.77 1.45 27.20 32582.31 Danone 61.57 0.21 67.74 49.84 2.61 29.92 44053.6 Fuji Hvy Ind 4536 87.50 4827.5 2811 1.63 12.40 28560.58 Volvo 101.90 1.00 120.50 71.00 3.04 25.23 23941.04 BrisMySq♦ 64.46 -0.43 70.54 47.55 2.26 60.75 107487.23 McDonald's 99.17 0.96 101.09 87.62 3.52 21.15 95055.92
NatAusBk 34.56 0.39 39.71 31.33 8.91 13.19 66014.78 EDF 21.85 0.71 26.12 19.52 6.35 9.89 44388.49 Hitachi 784.60 48.00 939.90 731.20 1.42 13.48 30500.94 Switzerland (SFr) Broadcom 51.35 -0.46 57.70 34.50 1.02 42.57 28228.02 McGraw Hill 102.84 1.36 109.13 73.96 1.22-170.97 28023.9
Telstra 6.45 0.04 6.74 5.23 7.36 15.39 57367.42 Essilor Intl 117.90 -1.85 121.10 71.16 0.88 24.58 27837.99 HondaMtr 3919.5 73.00 4400 3239 2.45 12.72 57102.94 ABB 19.50 0.27 22.31 16.75 - 18.08 46550.3 CapOne 81.50 1.88 92.10 72.77 1.55 10.14 44533.59 McKesson 217.36 -9.49 243.61 178.28 0.44 26.39 50497.62
Wesfarmers 42.34 0.65 46.95 38.45 7.73 27.41 34614.23 GDF Suez 17.56 0.67 20.57 16.08 7.39 15.89 46717.29 JapanTob 4765.5 107.50 4798 3101 2.29 19.36 76655.8 CredSuisse 28.54 0.47 28.94 18.57 2.53 12.19 48223.38 CardinalHlth 83.34 -1.01 91.91 68.54 1.73 23.18 27571.67 Medtronic 78.28 0.40 79.50 59.83 1.58 31.95 110702.69
Westpc 34.74 0.34 40.07 31.00 8.27 13.49 80468.05 Hermes Intl 349.10 0.45 365.55 229.00 0.86 38.42 40261.62 Kao 6395 -100.00 6623 3956 1.19 44.68 25922.55 Nestle 72.90 - 77.00 64.15 2.88 16.50 239709.56 Carnival 51.88 -0.22 52.47 33.11 1.97 27.64 30748.66 Merck 58.52 -0.02 63.62 52.49 3.20 14.46 165331.98
Woolworths 28.63 0.81 37.32 26.25 7.70 13.25 26381.48 LOreal 170.35 0.45 181.30 117.05 1.63 32.48 104162.72 KDDI 3171.5 -25.00 3209 1899.67 1.95 51.08 68638.44 Novartis 100.00 -0.20 103.20 78.60 2.63 25.86 276078.29 Caterpillar♦ 78.35 1.02 109.73 74.77 3.62 11.94 47433 Metlife 56.83 -0.39 58.23 46.10 2.59 8.79 63411.98
Belgium (€) LVMH 168.60 -0.40 175.40 121.40 2.07 13.56 93555.87 Keyence 61490 -280.00 70100 42660 0.35 28.25 30069.65 Richemont 82.35 0.35 92.25 68.80 1.54 31.87 44332.18 CBS 53.20 0.59 63.95 48.83 1.13 21.14 24169.61 MicronTech 19.90 0.03 36.59 17.14 - 6.47 21560.37
AnBshInBv 109.15 -4.30 119.65 78.75 2.87 23.92 191769.05 Nmrcble-SFR 49.35 -1.46 60.01 26.38 - -57.63 23626.96 MitsbCp 2666.5 46.50 2837 1942.5 2.45 9.95 34829.24 Roche 278.70 -0.90 295.80 238.80 2.96 26.07 201932.89 Celgene 131.88 -0.26 140.72 83.16 - 50.29 104256.44 Microsoft 46.88 0.59 50.05 40.12 2.65 18.52 379239.29
KBC Grp 62.18 0.04 65.43 36.53 - 11.81 28379.35 Orange 15.00 -0.40 16.45 10.20 4.05 38.99 43406.81 MitsubEst 2691 31.50 2975 2151.5 0.57 46.70 30092.56 Swiss Re 87.25 -1.25 96.95 69.25 5.09 35.05 33356.55 Cernr Crp 71.96 -1.44 75.72 53.65 - 46.37 24759.88 MondelezInt 45.27 2.17 45.31 31.83 1.37 31.11 73637.21
PernodRic 108.80 0.80 117.75 82.23 1.67 26.73 31547.76 MitsubishiEle 1374 -82.50 1718 1222.5 0.97 22.95 23728.27 Swisscom 560.50 2.50 587.50 500.00 4.12 16.50 29943.78 CharlesSch 35.19 0.37 35.53 23.35 0.72 35.74 46222.74 Monsanto 103.02 1.02 126.00 99.98 1.89 18.75 48196.32
Brazil (R$)
Renault 83.13 -7.22 100.25 49.50 2.29 10.87 26856.24 MitsuiFud 3513 68.00 3809.5 2854.5 0.78 31.02 28012.02 Syngent 396.90 3.00 435.20 273.20 2.77 23.23 38044.79 ChevrnTx 93.03 -0.22 133.69 88.74 4.84 9.67 174940.84 MorganStly♦ 39.30 0.01 41.04 31.12 1.07 18.23 77422.05
Ambev 18.91 0.16 20.29 14.99 9.16 21.87 88106.98
Safran 67.51 6.16 70.72 43.24 1.97-201.18 30756.6 MitUFJFin 893.20 14.40 936.80 546.20 2.20 7.61 101786.5 UBS 22.22 0.22 22.22 13.58 3.48 17.00 86146.64 Cigna 143.90 -1.51 170.68 85.75 0.03 17.23 37035.12 MylanNV 56.35 -0.89 76.69 44.80 - 25.23 27613.38
Bradesco 27.23 -0.36 34.42 25.53 3.90 7.40 20376.59
Sanofi 97.77 -0.23 99.83 69.58 2.96 29.01 140029.5 Mizuho Fin 268.00 5.60 280.40 178.10 3.05 7.82 53111.98 Zurich Fin 294.40 1.20 334.60 262.00 - 11.27 45662.76 Cisco 28.30 -0.10 30.31 22.49 2.80 16.15 143930.65 Netflix 111.56 4.48 117.88 45.08 - 253.00 47525.1
Cielo 43.60 -1.43 46.27 30.18 2.48 13.96 24384.64
Schneider 62.56 -0.18 75.29 52.59 3.11 21.37 39961.83 Murata Mfg 17970 -675.00 22220 9568 0.81 33.07 32557.1 Citigroup♦ 58.88 0.01 60.95 46.60 0.07 20.78 178650.14 News Corp A 34.04 0.03 39.27 31.01 0.85 7.62 42854.3
ItauHldFin 27.77 -0.59 35.22 25.87 1.83 6.67 25083.39 Taiwan (NT$)
SocGen 44.58 0.46 46.95 31.85 2.32 11.79 39258.38 NipponTT 4847 37.50 4946 3001.5 2.02 9.38 88624.62 CME Grp 97.01 - 100.87 72.25 2.07 26.07 32746.19 NextEraE 104.89 0.30 112.64 90.33 2.95 16.45 47421.15
Petrobras 11.52 -0.28 23.50 7.88 - -5.44 25415.61 HonHaiPrc 90.90 -0.60 112.00 83.00 1.87 9.08 43748.75
Total 44.96 0.65 52.09 38.25 5.78 33.27 118585.34 Nissan Mt 1186.5 3.00 1350 917.40 3.03 9.97 43140.14 Coca-Cola 40.56 -0.03 44.87 39.06 3.11 23.97 176788.91 Nike 115.01 0.09 115.40 75.90 0.96 30.38 77968.29
Vale 17.45 -0.90 32.95 16.41 16.51 -5.09 16641.94 TaiwanSem 138.50 3.00 155.00 118.00 2.29 11.89 114101.97
UnibailR 244.55 1.10 262.00 180.70 4.04 13.71 26315.65 NTTDCMo 2652.5 119.00 2682.5 1612.5 2.47 23.60 87163.78 Cognizant 63.12 0.86 65.96 41.51 - 24.96 38535.87 NorfolkS 85.80 -0.17 117.64 82.31 2.68 14.84 25858.99
Canada (C$) Vinci 56.08 -0.13 57.66 39.65 3.50 11.42 36640.74 Orintllnd 8252 -11.00 9890 4707.5 0.46 35.08 24137.78 Thailand (THB) ColgtPlm♦ 68.02 -0.91 71.56 62.53 2.23 25.53 61528.85 Northrop 175.41 1.97 176.50 118.24 1.64 17.88 33991.77
BCE 53.44 0.35 60.20 46.43 5.07 17.57 34781.13 Vivendi 23.69 -0.06 24.83 17.32 4.37 -88.56 35388.29 Panasonic 1447.5 -89.00 1853.5 1130 1.01 59.08 28558.3 PTT Explor 317.00 3.00 398.00 294.00 3.13 16.23 25906.92 Comcast 62.36 -0.12 64.99 49.33 1.51 18.56 132897.76 NXP 97.87 6.07 114.00 53.81 - 70.26 24638.92
BkMontrl♦ 73.01 0.20 85.71 71.27 4.73 10.49 36096.87 Seven & I 5659 -83.00 5757 3794.5 1.32 27.78 40345.64 United Arab Emirates (Dhs) ConocPhil♦ 52.07 -0.83 85.89 50.54 5.82 15.80 64199.53 Occid Pet 71.40 0.54 100.26 67.30 4.24 -35.25 54843.72
Germany (€)
BkNvaS 63.84 0.48 74.93 60.52 4.52 10.28 59278.3 ShnEtsuCh 7370 63.00 8529 6155 1.48 22.38 25613.27 Emirtestele 14.00 -0.80 15.85 9.41 5.02 12.89 33147.95 Corning 18.63 0.09 25.16 17.03 2.37 9.85 23446.85 Oracle 39.65 -0.14 46.71 35.82 1.32 17.56 171925.45
Allianz 150.40 0.40 170.15 115.05 3.64 10.31 75087.45
Brookfield 45.08 -0.24 48.64 31.95 1.32 9.50 33923.94 Softbank 6895 75.00 8760 6600 0.63 11.26 66582.64 Costco 145.30 -0.08 156.85 117.11 1.03 27.24 63857.56 Pepsico 96.63 0.10 100.76 87.46 2.74 22.51 141948.81
BASF 77.60 0.29 97.22 64.27 3.60 14.17 77863.54 United Kingdom (p)
CanadPcR 210.15 0.89 247.56 189.79 0.69 21.96 26463.12 Sony 3585 -75.00 3970 1731 0.76 -29.09 36253.79 CrownCstl 81.47 -0.65 89.44 72.53 3.02 70.22 27191.52 Pfizer 35.73 -0.03 36.13 27.51 3.12 23.55 220013.55
Bayer 133.75 -1.25 146.45 94.22 1.70 31.21 120830.12 AscBrFd 3159 8.00 3293 2407 1.08 44.27 39042.99
CanImp 92.55 0.63 107.37 88.04 4.83 9.65 28216.18 SumitomoF 5482 102.00 5747 3823 2.78 11.20 62346.5 CSX 31.46 -0.03 37.99 29.07 2.08 15.80 31081.9 PG&E 52.18 -0.16 60.21 42.92 3.46 18.31 25045.02
BMW 89.86 0.38 123.75 74.74 2.99 10.61 59096.63 AstraZen 4319.5 128.50 4931.68 4019 4.38 63.41 85212.71
CanNatRs 31.67 0.92 49.06 29.95 3.09 10.51 26596.12 Takeda Ph 6102 20.00 6657 4337.5 3.22 -30.19 38770.16 Cummins 129.80 -0.47 151.25 123.14 2.39 13.74 23534.27 Phillips66 79.12 -0.91 87.98 57.33 2.66 10.13 42853.93
Continental 203.50 -1.30 234.25 136.85 1.27 16.11 44464.22 Barclays 287.05 2.45 288.85 204.05 2.26 141.61 75166.77
CanNatRy 81.64 0.56 88.89 68.81 1.43 19.53 50081.11 TokioMarine 5118 36.00 5353 3002 2.02 14.49 31181.97 CVS♦ 112.94 -0.51 113.65 74.69 1.09 26.20 127433.68 PhilMorris 85.39 -0.06 90.25 75.27 4.85 17.13 132281.5
Daimler 80.67 -0.41 96.07 55.10 3.07 10.57 94282.96 BG 1079.5 39.50 1420 780.55 1.88 -28.46 57555.16
Enbridge 56.29 0.81 66.14 47.43 2.91 115.51 37007.42 Toyota 8163 51.00 8783 5710 2.67 10.89 224402.75 Danaher♦ 91.86 0.95 92.04 70.12 0.51 25.48 62785.21 PNCFin♦ 98.67 0.12 100.52 76.69 2.05 12.90 51103.2
Deut Bank 31.85 1.59 33.42 22.66 2.32 36.94 47991.35 BP 401.00 2.40 499.25 364.40 6.44 -18.21 114435.85
GtWesLif 36.94 0.05 37.70 29.30 3.66 12.83 28272.75 Deere♦ 93.51 -0.12 98.23 78.88 2.61 12.54 31220.32 PPG Inds 108.52 -0.05 118.95 85.78 1.25 26.99 29378.68
Deut Tlkm 16.43 -0.26 17.63 10.07 3.15 37.73 82684.93 Mexico (Mex$) BrAmTob 3740 59.50 3894 3303 3.96 17.36 108844.73
ImpOil 48.53 1.87 57.96 44.08 1.16 11.70 31566.25 Delta 44.03 -0.15 51.06 30.12 0.81 19.59 35021.39 Praxair 114.27 -1.66 134.06 111.54 2.37 22.42 32945.21
DeutsPost 27.42 0.09 31.19 21.55 3.02 16.23 36281.03 AmerMvl 15.26 -0.10 17.64 14.86 1.79 - 62558.11 BSkyB 850.50 -12.00 954.00 782.50 3.76 9.03 23005.52
Manulife 23.11 0.13 24.20 18.91 2.79 12.37 34956.1 DevonEngy 50.61 -0.57 78.47 48.21 1.99 -8.43 20802.82 Prec Cast 195.88 -0.33 249.12 186.17 0.06 17.29 26978.49
E.ON 12.01 0.06 15.46 11.59 5.17 -8.38 26242.95 FEMSA UBD 147.74 1.33 149.93 116.20 0.78 28.04 32094.18 BT 467.95 -5.55 481.75 351.90 2.44 17.95 60909.92
Potash♦ 35.17 0.39 47.10 34.44 5.46 13.75 22525.95 DirectTV 93.55 1.36 95.51 82.04 - 15.56 47176.52 Priceline 1222.06 2.63 1329.9 990.69 - 25.35 63347.73
Fresenius Med 75.13 -3.12 82.32 49.78 1.34 22.58 25534.22 WalMrtMex 38.64 -0.05 40.00 28.26 1.43 29.52 41022.73 Compass 1031 3.00 1223.36 924.41 2.62 20.02 26556.97
RylBkC♦ 75.75 0.10 83.87 71.74 4.30 10.70 83889.71 DiscFinServ 56.28 0.88 66.75 54.02 1.76 11.72 24904.18 ProctGmbl♦ 77.39 -3.23 93.89 77.10 3.50 19.58 209958.73
Fresenius SE 62.05 -0.36 65.53 35.10 0.69 28.79 29571.57 Netherlands (€) Diageo 1811 -28.50 2055 1689.5 2.85 22.60 71107.11
Suncor En 36.81 2.19 45.91 30.89 3.15 56.82 40838.72 Disney 120.03 0.19 120.35 78.54 1.01 24.56 203662.25 Prudntl 89.67 0.11 94.30 74.51 2.60 17.41 40620.51
HenkelKgaA 90.61 0.61 99.44 66.70 - 23.08 25716.49 Altice 114.50 -4.80 143.20 40.21 - 400.58 31017.77 GlaxoSmh 1389 14.50 1645 1296.5 5.76 6.99 105525.18
ThmReut 53.08 2.34 53.18 39.45 3.24 16.85 31938.8 DominRes 71.05 0.40 80.89 64.71 3.62 27.00 41967.3 PublStor 203.02 0.09 206.92 162.34 2.90 35.33 35101.32
Linde 170.35 2.75 195.55 142.85 1.82 27.62 34564.87 ASML Hld 90.70 1.12 104.85 61.58 0.78 28.86 42937.01 Glencore 211.00 -2.00 376.50 202.75 5.20 18.75 43461.98
TntoDom♦ 52.67 0.03 58.20 49.67 3.98 11.79 74851.45 DowChem 47.42 -0.01 54.97 41.45 3.41 14.05 54669.61 Qualcomm 64.41 1.24 78.53 60.83 2.68 17.77 101201.13
MuenchRkv 168.30 -0.10 206.50 141.10 4.45 9.22 31797.24 Heineken 71.01 -0.64 76.14 50.85 1.39 24.33 44683.51 HSBC 577.10 0.60 674.57 544.30 5.94 12.10 176063.91
TrnCan♦ 50.37 1.11 63.86 48.46 4.21 19.25 27403.39 DukeEner 73.45 0.34 89.97 69.48 4.53 19.88 50793.42 Raytheon 109.84 0.64 113.36 89.17 2.30 15.93 33341.71
SAP 65.47 0.34 70.81 50.08 1.70 25.21 87866.3 ING 15.45 0.11 16.00 9.49 - 32.40 65307.76 ImpTob 3349 -16.00 3413 2474 3.83 16.77 50039.76
ValeantPh 330.86 1.07 341.02 116.01 - 105.99 86629.15 DuPont 55.59 0.13 76.61 52.79 3.39 16.72 50299.94 Regen Pharm 547.10 0.83 569.91 310.69 - 166.70 55424.31
Siemens 96.03 3.55 106.35 80.17 3.48 13.95 92424.3 Philips 25.32 0.32 28.00 20.69 - 100.99 26346.82 LlydsBkg 86.02 0.42 89.35 70.72 0.87 -2.24 95957.17
China (HK$) Volkswgn 185.55 -0.35 254.50 147.35 2.62 8.34 59816.16 Natl Grid♦ 842.70 3.50 965.00 815.70 5.01 15.79 49002.01 Eaton♦ 61.08 -0.17 73.82 57.11 3.38 13.31 28555.85 ReynoldsAm 85.35 0.81 85.61 55.22 3.30 28.95 45407.32
Unilever 40.98 0.47 42.75 28.75 2.86 23.89 76756.9
AgricBkCh 3.49 -0.02 4.55 3.38 6.74 4.75 13838.62 Prudential 1520 18.50 1761.5 1287 2.30 17.50 61010.35 eBay 28.37 -0.38 29.35 19.50 - 11.94 34561.13 Salesforce 73.36 -0.52 78.46 51.04 - -283.37 48124.16
Hong Kong (HK$) Norway (Kr)
Bk China 4.22 -0.04 5.68 3.42 6.11 5.53 45521.46 RBS 342.40 -10.80 414.00 326.10 - -31.55 34582.96 Ecolab 116.10 0.78 118.46 97.78 1.10 27.05 34570.01 Schlmbrg 83.52 -0.37 112.00 75.60 2.14 24.97 105690.3
AIA 50.10 -0.50 58.20 39.10 0.89 22.57 77858.83 DNB 133.80 -0.90 143.00 98.10 2.93 9.56 26680.87
BkofComm 6.81 -0.05 8.61 5.29 5.02 5.76 30756.87 ReckittB 6104 11.00 6167 4895 2.28 25.94 67869.71 EMC 26.78 0.10 30.92 24.74 1.81 20.17 52008.4 SempraEgy 100.86 0.27 116.30 96.13 2.79 17.82 24970.93
BOC Hold 31.00 -0.60 33.70 23.85 3.26 13.32 42279.39 Statoil 141.20 3.80 183.70 118.20 5.26 10.57 55121.06
Ch Evrbrght 4.26 -0.10 5.65 3.47 5.31 5.22 3774.51 RELX 1097 -4.00 1199 921.50 2.27 103.23 35571.39 Emerson 51.98 -0.23 66.23 50.10 3.64 13.04 34738.5 Shrwin-Will 277.92 -0.88 294.35 202.01 0.87 28.42 25905.1
Ch OSLnd&Inv 24.45 -0.25 34.05 19.80 2.01 7.21 31099.88 Telenor 179.20 -2.10 186.10 128.90 2.19 24.91 32940.29
Ch Yangtze RMB 14.35 - 15.22 6.68 2.06 17.19 22522.28 RioTinto 2456.5 2.50 3530.5 2373 5.33 10.91 53631.63 EOG Res♦ 78.54 0.80 115.44 72.87 0.78 19.62 43113.32 SimonProp 186.14 -0.33 206.31 162.43 2.99 38.26 57938.08
Citic Ltd 13.82 0.12 16.88 11.64 1.92 8.39 44395.9
ChCommsCons 9.96 -0.34 17.00 5.45 2.48 8.66 5688.45 Qatar (QR) RollsRoyce 749.50 19.00 1061 717.50 2.99-192.18 21513.69 EquityResTP 74.29 -0.16 82.53 60.44 2.91 36.79 27040.73 SouthCpr 27.40 -0.55 33.49 23.60 1.69 16.56 21865.91
Citic Secs♦ 20.95 -0.15 40.50 16.30 0.95 12.66 6157.14
ChConstBk 6.29 -0.06 7.98 5.34 6.27 5.20 195072.21 QatarNtBk 182.50 -2.50 237.00 177.80 4.07 11.75 35068.14 RylDShlA 1839 74.50 2475.5 1725.5 7.17 11.69 112485.04 Exelon 31.65 0.51 38.93 30.63 3.89 11.78 27258.36 SouthwestAir 36.31 0.79 47.17 27.42 0.70 16.57 24265.85
CK Hutchison 112.40 0.70 174.90 103.00 3.15 4.83 55962.26
China Vanke - - - - - - - Russia (RUB) SABMill 3390.5 7.50 3857 3105 2.09 24.73 85595.09 ExpScripts 90.25 -1.04 94.61 68.78 - 29.89 60984.72 Starbucks 58.06 0.55 59.31 35.39 1.04 32.96 86172.65
CNOOC 9.72 0.06 15.88 9.36 5.86 5.77 55981.21
ChinaCitic 5.56 -0.05 7.40 4.66 6.03 4.86 10673.78 Gzprm neft 139.80 1.10 166.94 113.73 5.12 20.33 55528.12 Shire 5590 -110.00 5755 3448.28 0.27 14.28 51653.28 ExxonMb 83.01 -0.13 104.15 78.97 3.50 11.84 347073.8 StateSt 77.15 0.73 81.26 64.21 1.64 15.71 31761.08
Hanergythn 3.91 -3.46 9.07 1.21 - 52.03 21056.26
ChinaCNR 15.86 0.78 21.95 4.99 - 25.51 4365.2 Lukoil 2441 10.10 3297.7 1911.5 2.77 8.17 34835.12 StandCh 983.10 0.90 1261.04 867.50 5.62 14.51 39086.01 Facebook 95.21 -1.78 99.24 70.32 - 88.13 214117.44 Stryker 101.84 -0.14 103.99 77.87 1.31 42.07 38537.19
HangSeng 157.00 1.00 161.50 123.20 3.51 19.82 38719.5
ChinaLife♦ 28.90 -0.75 41.00 21.00 1.37 16.78 27740.7 MmcNrlskNckl 9365 6.00 12247 6631 13.43 12.40 24864.62 Tesco 214.65 1.65 269.56 155.40 5.26 -3.06 27266.42 Fedex 171.27 -0.62 185.19 145.08 0.48 45.76 48371.82 Sychrony Fin 34.60 0.12 36.40 22.60 - 13.04 28848.25
HK Exc&Clr 210.20 -2.80 311.40 162.00 1.69 47.39 32468.55
ChinaMBank♦ 19.88 -0.17 26.85 13.12 4.10 6.54 11773.14 Rosneft 230.10 1.10 294.20 183.95 6.02 7.11 40915.75 Vodafone♦ 241.05 0.10 258.00 179.10 4.59 11.25 99782.98 FordMtr♦ 15.10 -0.11 17.87 13.26 3.62 16.47 58844.49 Target 81.93 0.09 85.81 57.26 2.47 20.48 52311.63
MTR 34.45 -0.40 40.00 29.95 2.67 12.81 25990.04
ChinaMob 99.90 1.05 118.00 84.45 3.16 14.91 263856.57 Surgutneftegas 32.94 0.39 39.80 21.82 2.64 2.41 19741.83 WPP 1461 -5.00 1616 1091 2.41 18.14 29550.29 Franklin 46.16 -0.35 59.43 45.90 1.23 12.48 28552.7 TE Connect 60.70 0.07 73.73 51.03 1.96 13.39 24424.74
SandsCh 32.90 -0.05 58.30 25.90 5.26 13.43 34244.34
ChinaPcIns 32.50 -0.85 47.10 26.55 1.62 17.52 11635.14 GenDyn♦ 150.28 0.32 153.40 114.10 1.73 17.50 49401.96 TexasInstr♦ 50.24 0.28 59.99 41.47 2.68 17.12 52267.86
SHK Props 120.10 0.30 137.60 106.30 2.79 10.98 44557.36 Saudi Arabia (SR) United States of America ($)
ChinaRailCons 10.16 -0.24 17.70 6.92 1.68 8.20 2721.19 GenElectric 26.12 -0.14 28.68 23.41 3.62 204.64 263183.27 TheTrvelers 106.50 0.07 110.49 88.81 2.11 9.77 33143.4
Tencent 142.80 -1.60 171.00 104.50 0.18 41.43 172739.23 AlRajhiBnk 65.22 0.34 79.50 48.40 2.95 16.04 28260.49 3M 151.57 0.12 170.50 130.60 2.49 19.10 96147.06
ChinaRailGp 6.67 -0.16 12.30 3.98 1.30 10.33 3620.08 GenGrwthPrp♦ 26.90 -0.08 31.70 22.92 2.46 25.54 23838.86 ThrmoFshr 139.12 -0.50 141.25 107.33 0.45 30.69 55377.68
India (Rs) Natnlcombnk 64.82 1.07 72.75 49.50 - 14.08 34476.06 AbbottLb♦ 50.77 -0.29 51.74 39.28 1.86 36.19 75584.21
ChMinsheng 8.73 -0.08 11.88 6.97 2.67 5.27 7808.18 GenMills♦ 58.26 0.77 58.36 48.32 2.93 28.85 34882.46 TimeWrnr 88.44 0.33 91.34 67.78 1.55 21.05 72927.84
Bhartiartl 416.95 -0.70 452.45 335.80 0.84 33.54 26036.35 SaudiBasic 96.78 0.74 136.50 70.25 5.47 11.93 77419.86 Abbvie♦ 70.16 -0.61 71.60 51.37 2.62 59.14 111770.22
ChMrchSecs RMB 21.41 -0.95 40.00 10.59 0.75 19.74 16560.56 GenMotors 31.91 -0.04 39.00 28.82 3.92 11.86 50545.36 TimeWrnrC 190.84 1.41 191.73 128.78 2.07 25.62 53947.83
HDFC Bk 1110.55 2.20 1128 791.40 0.72 25.96 41884.34 SaudiTelec 68.56 -3.44 76.50 55.00 5.37 11.79 36563.38 Accenture 102.66 0.21 103.31 73.98 2.03 22.67 81879.66
ChShenEgy 14.66 -0.34 24.40 14.38 8.16 6.90 6427.03 GileadSci 117.90 2.19 123.37 85.95 - 12.78 173266.55 TJX Cos 69.62 0.16 71.03 52.69 1.02 21.40 47368.4
Hind Unilevr 920.70 21.50 981.00 678.00 1.25 50.31 31105.13 Singapore (S$) Ace 108.59 0.60 117.89 99.45 2.52 12.41 35464.67
ChShpbldng RMB 14.50 0.56 20.19 4.86 0.33 127.95 41933.21 GoldmSchs 207.20 0.36 218.77 168.02 1.17 10.38 89513.69 T-MobileUS 38.86 1.82 40.77 24.26 - 94.10 31492.74
HsngDevFin 1335.8 23.75 1402.3 975.00 1.06 24.31 32887 DBS 20.71 -0.29 21.50 17.62 2.84 28.14 37776.54 Actavis 298.98 -2.94 317.72 201.91 - -31.33 117333.1
ChStConEng RMB 6.93 -0.31 12.52 3.10 2.17 8.31 33316.49 Google 664.56 3.13 713.33 490.91 - 33.28 192646.82 Twitter 31.47 0.23 55.99 31.05 - -30.65 21135.08
ICICI Bk 291.00 1.75 393.40 280.35 3.40 12.90 26353.17 JardnMt US$ 54.98 -0.02 67.88 52.42 2.57 11.91 38409.39 Adobe 81.29 1.04 84.36 58.51 - 110.50 40453.59
ChUncHK 10.68 0.02 16.00 9.68 2.00 16.92 32991.41 Halliburton 42.29 -1.00 71.86 37.21 1.62 24.95 36147.34 UnionPac 97.70 -0.83 124.52 91.23 2.13 16.92 84773.47
Infosys 1070 -15.40 2336 932.65 3.47 19.18 38203.59 JardnStr US$ 30.18 -0.14 37.84 29.87 0.86 9.97 33804.69 AEP 56.32 0.38 65.38 49.06 3.68 15.94 27628.32
CSR 9.90 -0.18 20.70 6.80 1.20 18.97 5582.16 HCA Hold 92.96 -0.60 95.49 62.50 - 18.56 38515.23 UPS B 101.40 0.51 114.40 94.05 2.84 28.17 71133.72
ITC♦ 315.95 11.95 409.95 294.00 1.67 28.38 39253.41 OCBC 10.27 -0.07 10.92 9.51 3.54 9.41 30206.3 Aetna♦ 114.15 1.55 134.40 71.81 1.08 17.95 39861.18
Daqin RMB 9.83 -0.30 15.15 7.01 4.61 9.72 23534.58 Hew-Pack 30.62 0.32 41.10 29.52 2.12 12.05 55312.43 USBancorp 45.06 0.05 46.26 38.10 2.29 13.76 79892.96
L&T 1773.75 -16.55 1893.8 1401 0.82 29.33 25683.22 SingTel♦ 4.11 -0.16 4.57 3.63 4.31 16.46 47630.8 Aflac 64.04 -0.50 65.10 54.99 2.50 9.50 27785.95
GF Secs RMB 18.33 -0.97 32.88 10.09 1.15 15.29 17473.04 HiltonWwde 26.54 -1.17 31.60 20.72 - 40.51 26206.89 Utd Cntl Hldg 56.84 -0.37 74.52 39.46 - 8.31 21472.01
OilNatGas 270.90 1.15 457.95 263.45 3.61 8.71 36205.29 UOB 22.93 -0.02 25.05 21.53 3.22 10.70 26705.5 AirProd♦ 142.34 8.20 158.20 118.20 2.31 28.41 30569.62
GuosenSec - - - - - - - HlthcareREIT 68.81 -0.50 84.88 62.05 4.91 55.46 24126.62 UtdHlthcre 120.56 -0.96 126.05 78.74 1.34 19.33 114761.58
RelianceIn 1000.15 4.15 1067.85 796.45 0.96 12.56 50566.04 Alexion 199.29 0.53 208.88 150.06 - 64.90 39773.65
HaitongSecs 14.10 0.16 27.90 11.50 1.13 9.81 6201.49 South Africa (R) HomeDep 116.46 0.09 117.99 79.66 1.74 23.27 151278.75 UtdTech 100.73 1.37 124.45 97.30 2.42 14.56 89709.91
SBI NewA 256.80 3.20 336.00 234.61 1.17 11.92 29949.23 Allstate 69.16 0.12 72.87 56.63 1.73 10.09 28287.34
HuataiSec RMB 19.05 -1.17 34.31 8.25 0.83 17.78 16700.42 Firstrand 53.90 -0.95 58.47 40.27 3.56 13.55 23739.41 Honywell 105.38 -0.16 107.10 82.89 1.89 19.03 82382.12 ValeroEngy 64.23 -1.81 68.27 42.53 1.96 8.37 32668.75
SunPhrmInds 814.25 -15.50 1200.8 743.30 0.19 28.06 26344.54 Altria 54.20 -0.20 56.70 40.26 3.81 21.12 106587.43
In&CmBkCh 5.36 -0.10 7.10 4.74 6.42 5.22 60011.14 MTN Grp 206.10 1.60 263.44 198.00 5.94 10.73 29864.07 HumanaInc♦ 183.70 -0.71 219.79 115.51 0.61 21.89 27514.82 Verizon♦ 46.67 0.11 52.15 45.09 4.68 19.61 189745.82
Tata Cons♦ 2480.65 -26.10 2839.7 2345 1.39 22.24 75902.81 Amazon 536.76 7.76 580.57 284.00 - -1337.46 251048.14
IndstrlBk RMB 15.30 -0.30 21.42 9.99 3.17 5.70 39865.44 Naspers N 1769.1 -3.73 2029.97 1130.01 0.27 46.24 58229.83 IBM 160.96 -0.13 195.99 149.52 2.84 10.80 157665.12 VertexPharm 135.46 9.84 137.50 84.41 - -43.35 33018.68
Tata Motors 377.45 1.00 612.40 366.10 0.53 8.03 19151.29 AmerAir 40.27 -0.46 56.20 28.10 0.99 7.01 27054.21
Kweichow RMB 205.95 -1.85 290.00 145.50 2.03 15.34 37875.95 South Korea (KRW) IllinoisTool 89.28 -0.06 100.14 79.06 2.21 17.38 32827.48 VF Cp 76.66 0.66 77.83 59.82 1.60 30.67 32578.6
AmerExpr♦ 76.12 0.42 94.89 74.30 1.73 13.36 77322.37
PetroChina♦ 7.79 -0.04 11.70 7.40 5.51 13.92 21201.86 Indonesia (Rp) HyundMobis 211000 500.00 312000 185500 1.57 8.68 17255.18 Illumina 218.87 1.68 242.37 145.12 - 71.87 31539.17 Viacom 56.36 -0.24 86.35 55.55 2.46 12.61 19533.97
AmerIntGrp 64.53 -0.01 64.93 48.56 0.81 10.43 86044.01
PingAnIns♦ 44.75 -0.75 62.90 28.53 1.03 12.05 42991.81 Astra Int 6575 150.00 8575 6325 3.50 12.23 19764.48 KoreaElePwr 48600 100.00 50400 38750 1.14 8.26 26706.14 Intcntl Exch 229.05 1.34 242.96 184.27 0.90 23.94 25495.45 Visa Inc 76.38 0.37 76.92 48.80 0.60 32.28 149046.96
Amerisrcbrgn 104.47 -3.31 120.68 74.32 1.06 -33.56 22950.55
PngAnBnk RMB 12.26 -0.34 17.50 8.32 1.15 7.86 23305.45 Bk Cent Asia 12800 -50.00 15600 10950 1.06 17.26 23433.11 SK Hynix 34500-2500.00 51700 34050 0.96 5.41 21498.88 Intel 28.91 -0.10 37.90 27.62 3.19 12.35 137438.14 Walgreen 96.54 -0.04 97.27 57.75 1.43 24.23 105301.63
AmerTower 94.95 -1.37 105.20 90.20 1.55 46.49 40172.3
SaicMtr RMB 19.12 -0.69 29.18 15.74 6.61 7.03 33948.82 BnkRakyat 9350 -150.00 13450 9350 6.40 8.71 17126.81 SmsungEl 1215000-48000.00 1510000 1078000 1.82 7.12 134487.37 Intuit 105.74 0.22 109.21 77.96 0.90 93.34 29149.23 WalMartSto 72.16 -0.07 90.97 70.36 2.73 14.54 232394.79
Amgen 171.69 0.22 174.80 124.76 1.60 22.04 130539.97
ShenwanHong - - - - - - - Israel (ILS) Spain (€) John&John 99.84 0.11 109.49 95.10 2.95 17.01 276860.85 WasteMgmt 51.20 0.50 55.93 43.97 2.95 23.69 23155.22
Anadarko 76.63 0.35 113.51 69.40 1.40 -15.57 38928.97
ShgPdgBk RMB 14.90 -0.39 19.17 9.36 4.67 5.55 35807.35 TevaPha 271.10 3.30 275.90 176.00 1.96 21.24 60269.45 BBVA 9.27 -0.04 9.91 7.21 0.89 15.10 63825.91 JohnsonCn 45.59 0.44 54.52 38.60 2.21 18.93 29853.73 Wellpoint 128.71 0.94 129.96 81.84 1.64 12.65 34744.16
Aon Cp♦ 101.94 0.36 107.08 78.26 1.03 20.40 28731.02
Sinopec 5.89 -0.01 8.23 5.72 5.40 15.22 19384.86 BcoSantdr 6.28 -0.22 7.96 5.77 9.32 12.46 98174.02 JPMrgnCh♦ 69.04 0.10 70.61 54.26 2.44 12.02 256213.46 WellsFargo 58.15 0.19 58.77 46.44 2.53 13.51 299426.27
Italy (€) AppldMat 17.57 0.02 25.71 17.13 2.31 16.87 21639.18
Denmark (kr) CaixaBnk 4.16 -0.01 5.00 3.71 - 28.97 26195.7 Kimb-Clark 114.57 1.07 119.01 99.20 2.98 65.26 41734.99 Williams Cos 52.98 -1.03 61.38 40.07 4.24 18.26 39679.98
Enel 4.22 -0.03 4.50 3.36 3.18 81.68 43371.48 Apple 122.37 -0.62 134.54 93.28 1.57 14.25 697842.09
DanskeBk 210.20 0.10 217.10 139.20 2.65 32.42 31043.55 Iberdrola 6.41 0.01 6.49 5.11 2.45 16.18 43696.41 KinderM♦ 35.03 -0.21 44.71 33.25 5.10 49.51 76783.56 Yahoo 37.42 -0.25 52.62 35.15 - 4.84 35116.52
ENI 15.92 0.08 19.79 12.98 7.21 106.79 63205.28 ArcherDan 47.82 -0.31 53.91 41.63 2.20 11.95 29890.92
MollerMrsk 11510 70.00 16450 11020 2.71 13.27 36164.67 Inditex 30.80 0.04 31.45 19.29 1.36 35.19 104867.86 Kraft 88.19 -0.11 91.32 53.33 2.56 52.15 52233.16 Yum!Brnds♦ 88.02 0.25 95.90 65.81 1.80 43.41 37954.71
Generali 17.91 0.31 19.21 14.40 2.60 14.79 30461.56 AT&T♦ 34.80 0.11 36.63 32.07 5.62 29.90 180716.4
NovoB 397.20 -2.80 409.70 239.30 1.30 33.68 154122.57 Repsol 15.38 -0.64 19.50 14.26 2.58 16.11 23090.04 Kroger 39.00 0.20 39.34 24.29 0.91 20.52 18942.75
IntSPaolo 3.46 0.02 3.65 2.00 1.49 29.41 59898.4 AutomData 80.13 -2.21 90.23 70.50 2.55 22.62 37622.96
Telefonica 13.81 0.05 14.12 10.76 2.96 22.73 74477.9 L Brands 81.34 -1.40 95.78 57.21 1.90 21.06 23748.39 Closing prices and highs & lows are in traded currency (with variations for that
Finland (€) Luxottica 66.25 -0.30 67.30 34.74 1.10 41.65 34975.56 Avago Tech 127.65 -0.93 150.50 68.71 1.07 50.61 33154.5
LasVegasSd 56.01 1.74 75.08 49.57 4.04 16.61 44731.62 country indicated by stock), market capitalisation is in USD. Highs & lows are
Nokia 6.43 0.45 7.87 5.65 1.77 21.06 25817.23 Unicred 5.97 - 6.61 4.82 - 14.76 38917.64 Sweden (SKr) BakerHu 58.69 -0.98 72.76 47.51 1.15 99.22 25581.93
LibertyGbl 52.41 0.05 58.66 39.95 - -35.81 13210.82 based on intraday trading over a rolling 52 week period.
SampoA 45.17 0.14 49.40 34.77 3.78 15.07 27574.64 Japan (¥) AtlasCpcoB 210.10 2.80 270.00 165.20 1.48 18.92 29627.01 BankAm 18.13 -0.03 18.48 14.84 1.10 19.47 190403.08
Lilly (E) 84.54 -0.55 90.18 60.14 2.45 39.32 93817.52 ♦ ex-dividend
France (€) AstellasPh 1852 -78.50 2047 1390 1.77 27.62 33094.59 Ericsson 91.90 0.85 120.00 81.05 3.82 28.34 35164.24 Baxter 40.01 1.51 41.94 34.77 5.47 11.19 21775.61
LinkedIn 227.15 -4.85 276.18 178.76 - -596.83 25049.6 ■ ex-capital redistribution
Airbus Grpe 62.41 0.29 66.10 39.64 1.24 17.55 53697.22 Bridgestne 4651 197.50 5182 3328 2.34 11.13 30415.73 H&M 340.30 1.50 368.50 269.60 2.96 25.23 65206.86 BB & T 40.61 - 41.90 34.50 2.49 14.13 29367.51
Lockheed 206.47 -1.68 210.41 162.52 2.80 18.48 64116.06 # price at time of suspension
AirLiquide 117.05 1.55 123.95 87.17 2.20 21.84 43990.79 Canon 3927 -38.50 4539 3172 4.11 18.71 42125.63 Investor 330.80 0.10 363.40 219.30 2.81 4.65 29381.53 BectonDick 152.00 0.01 152.49 112.15 1.58 26.52 31826.62
Lowes♦ 68.86 0.12 76.25 47.27 1.36 24.02 64224.73
CntJpRwy 21500 -830.00 24800 13320 0.61 14.69 35621.51 Nordea Bk 106.00 -0.20 115.50 82.40 5.59 11.58 49476.36 BerkshHat 214745 425.00 229374 185005 - 16.50 183919

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
Amazon 536.76 529.00 7.76 1.47 54.58 11.3 23.65 Naspers N 1769.10 1772.83 -3.73 -0.21 -185735.90 -99.1 -6.64 Jul 30 date Coupon S* M* F* price yield yield yield US Jul 30 date Coupon S* M* F* price yield yield yield US
MondelezInt 45.27 43.10 2.17 5.03 3.15 7.5 10.04 MTN Grp 206.10 204.50 1.60 0.78 -21594.90 -99.1 -9.90 High Yield US$ US$
Safran 67.51 61.35 6.16 10.04 4.67 7.4 11.05 Firstrand 53.90 54.85 -0.95 -1.73 -5475.10 -99.0 1.09 Windstream Services, LLC 11/17 7.88 BB- B1 BB 100.36 7.84 0.00 3.06 7.10 Merrill Lynch & Co., Inc. 09/26 6.22 BBB+ Baa3 A- 114.76 4.57 0.00 -0.23 2.30
NTTDCMo 2652.50 2533.50 119.00 4.70 180.00 7.3 13.34 PingAnIns 44.75 45.50 -0.75 -1.65 -51.85 -53.7 -12.68 High Yield Euro Bank of America Corporation 10/26 4.25 BBB+ Baa3 A- 97.75 4.56 0.00 -0.07 2.29
AirProd 142.34 134.14 8.20 6.11 9.63 7.3 4.03 Biogen 317.00 313.34 3.66 1.17 -68.05 -17.7 -21.52 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 93.75 - 0.00 0.00 - Halliburton Company 02/27 6.75 A A2 A- 120.43 4.51 0.00 0.04 -
ReynoldsAm 85.35 84.54 0.81 0.96 5.58 7.0 14.32 MylanNV 56.35 57.24 -0.89 -1.55 -10.21 -15.3 -16.96 Korea Electric Power Corporation 08/27 6.75 A+ Aa3 AA- 97.72 7.16 0.00 -0.03 -
NipponTT 4847.00 4809.50 37.50 0.78 303.50 6.7 10.52 ChStConEng 6.93 7.24 -0.31 -4.28 -1.08 -13.5 -9.06 Emerging US$ SouthTrust Bank 12/27 6.57 A+ Aa3 A+ 119.14 4.58 0.00 -0.09 -
HyundMobis 211000.00 210500.00 500.00 0.24 13000.00 6.6 0.48 Daqin 9.83 10.13 -0.30 -2.96 -1.53 -13.5 -25.47 Peru 05/16 8.38 BBB+ A3 BBB+ 105.18 1.41 0.00 0.19 0.68 FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa3 A- 119.15 4.87 0.00 -0.15 -
SandsCh 32.90 32.95 -0.05 -0.15 2.00 6.5 23.45 Twitter 31.47 31.24 0.23 0.74 -4.72 -13.0 -13.31 Mexico 09/16 11.40 BBB+ A3 BBB+ 111.50 0.99 0.04 -0.07 0.25
Brazil 01/18 8.00 BBB- Baa2 BBB 108.30 4.39 0.09 -0.03 3.65 Euro
Visa Inc 76.38 76.01 0.37 0.49 4.63 6.5 13.64 Fanuc 20745.00 20700.00 45.00 0.22 -3100.00 -13.0 -17.10 Goldman Sachs Group, Inc. (The) 06/26 2.88 A- A3 A 105.37 2.31 0.00 -0.08 0.04
Raytheon 109.84 109.20 0.64 0.59 6.63 6.4 14.80 SaicMtr 19.12 19.81 -0.69 -3.48 -2.80 -12.8 -8.87 Russia 07/18 11.00 BB+ Ba1 BBB- 120.72 3.63 0.00 0.00 2.89
Peru 03/19 7.13 BBB+ A3 BBB+ 116.51 2.40 0.00 0.01 0.77 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 94.97 3.15 0.00 -0.38 -
MicronTech 19.90 19.87 0.03 0.15 1.20 6.4 5.63 ChinaRailCons 10.16 10.40 -0.24 -2.31 -1.44 -12.4 -13.31 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 110.71 2.20 0.00 -0.36 -
UnionPac 97.70 98.53 -0.83 -0.84 5.58 6.1 2.44 Renault 83.13 90.35 -7.22 -7.99 -10.35 -11.1 -11.01 Brazil 01/21 7.88 BBB- Baa2 BBB 102.47 4.41 0.00 0.40 2.78
Turkey 03/21 5.63 - Baa3 BBB- 107.11 4.24 0.00 0.11 2.62 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 107.84 2.21 0.00 -0.29 -
Northrop 175.41 173.44 1.97 1.14 9.91 6.0 10.58 ChinaRailGp 6.67 6.83 -0.16 -2.34 -0.83 -11.1 -17.65
Poland 04/21 5.13 A- A2 A- 111.96 2.86 0.00 -0.18 1.23 Yen
Vale 18.35 18.35 0.00 0.00 1.03 5.9 -4.59 CapOne 81.50 79.62 1.88 2.36 -9.27 -10.2 -7.35
Colombia 07/21 4.38 BBB Baa2 BBB 103.42 3.76 0.00 0.18 2.13 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Anadarko 76.63 76.28 0.35 0.46 4.09 5.6 -1.81 SK Hynix 34500.00 37000.00 -2500.00 -6.76 -3700.00 -9.7 -19.01
UPS B 101.40 100.89 0.51 0.51 5.29 5.5 4.31 BnkRakyat 9350.00 9500.00 -150.00 -1.58 -1000.00 -9.7 -9.66 Turkey 04/26 4.25 - Baa3 BBB- 94.41 4.99 0.00 0.00 2.72 £ Sterling
Baxter 40.01 38.50 1.51 3.92 2.04 5.4 5.32 HuataiSec 19.05 20.22 -1.17 -5.79 -1.97 -9.4 -9.63 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 127.16 3.73 0.00 0.17 1.46
FastRetail 61930.00 60230.00 1700.00 2.82 3140.00 5.3 13.43 PngAnBnk 12.26 12.60 -0.34 -2.70 -1.26 -9.3 -9.59 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 105.83 3.36 0.02 -0.16 1.09
NXP 97.87 91.80 6.07 6.61 4.87 5.2 -0.34 Keyence 61490.00 61770.00 -280.00 -0.45 -6210.00 -9.2 -6.97 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.76 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ - BBB+ 109.57 3.20 0.00 -0.07 1.57 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 116.42 3.82 0.00 -0.17 1.55
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Jul 30 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jul 30 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.14 16-12-2008 0.14 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 12.13 -0.37 12.50 31.06 11.24 Jul 30 Price £ Yield Day Week Month Year High Low £m
US Prime 3.25 16-12-2008 3.25 3.25 3.25 Markit IBoxx VXD 12.96 -0.32 13.28 23.19 7.04 Tr 2pc '16 100.70 0.52 1.96 0.00 4.00 -38.82 101.97 100.70 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 175.91 0.06 -0.90 -1.33 -0.63 -2.49 VXN 14.44 -0.52 14.96 31.17 11.15 Tr 1.75pc '17 101.65 0.62 3.33 -4.62 3.33 -50.00 102.68 101.29 0.29
Euro Repo 0.05 10-09-2014 0.15 0.05 0.25 Corporates( £) 294.18 -0.20 1.16 0.23 1.28 6.48 VDAX 19.30 0.00 19.30 27.09 - Tr 5pc '18 110.68 0.84 2.44 -2.33 1.20 -47.83 113.65 110.68 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 249.92 -0.16 0.22 -0.22 0.22 -0.22 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.86 1.13 1.80 -3.42 -1.74 -39.25 115.07 111.57 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 211.50 -0.03 1.00 -0.56 1.03 2.05 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.03 1.37 0.74 -2.84 -2.14 -33.82 119.04 114.05 0.33
Switzeland Libor Target 0.00-0.25 03-08-2011 0.00-0.75 0.00-0.25 0.00-0.25 Eurozone Sov(€) 222.53 -0.11 1.76 0.39 2.00 4.85 Tr 8pc '21 135.85 1.57 0.64 -3.09 -2.48 -29.60 142.92 135.31 0.24
Gilts( £) 283.79 -0.23 0.80 -0.65 1.12 8.56 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 114.59 1.66 0.00 -2.35 -2.92 -29.36 119.85 111.23 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 247.53 0.05 0.09 -1.32 1.08 -3.75 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 126.39 1.97 0.00 -2.48 -4.83 -26.77 134.70 120.83 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 293.81 -0.19 0.90 0.11 1.05 6.44 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 122.28 2.18 -0.46 -3.11 -4.80 -24.57 131.90 114.66 0.31
Jul 30 (Libor: Jul 29) night Day Week Month month month month year Overall ($) 224.91 -0.12 0.50 0.33 0.50 0.33 Australia 10/18 3.25 104.02 1.95 0.02 0.01 -0.15 -0.98 Tr 4.25pc '32 125.06 2.43 -0.41 -2.80 -4.33 -21.61 136.85 115.47 0.35
US$ Libor 0.12600 0.000 -0.002 -0.001 0.18955 0.29680 0.47465 0.80110 Overall( £) 284.14 -0.22 0.83 -0.41 1.10 7.88 04/26 4.25 111.97 2.94 0.03 0.02 -0.25 -0.71 Tr 4.25pc '36 127.18 2.55 -0.39 -3.04 -3.77 -20.56 140.37 116.00 0.26
Euro Libor -0.18000 0.000 0.000 -0.001 -0.08429 -0.01571 0.05557 0.16786 Overall(€) 218.87 -0.09 1.41 0.17 1.56 3.92 Austria 10/18 1.15 103.64 0.05 0.00 0.00 0.00 0.00 Tr 4.5pc '42 137.28 2.59 -0.77 -3.36 -4.43 -20.55 153.16 122.75 0.26
£ Libor 0.48250 0.000 0.000 -0.001 0.50838 0.57906 0.75094 1.07056 Treasuries ($) 216.29 -0.11 0.70 0.57 0.70 0.57 10/25 1.20 102.79 0.91 -0.07 -0.08 -0.36 0.00 Tr 3.75pc '52 128.24 2.56 -0.78 -3.76 -4.83 -21.95 145.21 110.28 0.22
Swiss Fr Libor -0.004 -0.78800 -0.73900 -0.69100 -0.58500 FTSE Belgium 06/18 0.75 101.60 0.18 0.01 0.01 -0.01 -0.37 Tr 4pc '60 139.83 2.51 -0.79 -3.83 -4.56 -22.53 159.23 118.05 0.21
Yen Libor 0.001 0.06143 0.09786 0.13143 0.24829 Sterling Corporate (£) 111.27 0.02 - - 0.67 2.01 06/25 0.80 98.58 0.95 -0.06 -0.10 -0.37 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.001 -0.07400 -0.02200 0.04800 0.16900 Euro Corporate (€) 107.44 0.15 - - 0.84 -0.34 Canada 05/17 0.25 99.64 0.46 0.01 0.04 -0.02 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.51000 0.60000 0.78500 Euro Emerging Mkts (€) 871.17 1.68 - - -2.72 -9.22 06/25 2.25 106.79 1.50 -0.01 0.00 -0.24 0.00
US$ CDs
Euro CDs
0.000
0.000
0.17000
-0.10500
0.26000
-0.06500
0.41000
-0.00500
Eurozone Govt Bond 113.53 0.34 - - 2.03 2.42 Denmark 11/16 2.50 103.73 -0.39 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 109.16 0.82 -0.05 -0.09 -0.26 -0.71
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 99.57 1.16 0.00 -0.04 0.00 0.00
Fixed Coupon Jul 30 chg % Return 1 month 1 year Yield
Jul 30 term notice month month month year Markit iTraxx 07/25 4.00 126.99 1.13 0.00 0.00 0.00 0.00
1 Up to 5 Years 98.87 -0.04 2346.69 0.02 2.53 1.14
Euro -0.20 -0.10 -0.20 -0.10 -0.20 -0.05 -0.15 0.00 -0.08 0.07 0.07 0.22 Crossover 5Y 288.66 2.27 8.53 -38.96 356.33 242.25 France 11/16 0.25 100.61 -0.21 0.00 0.00 0.00 0.00
2 5 - 10 Years 178.59 -0.01 3178.40 0.36 6.18 1.78
Sterling 0.40 0.55 0.40 0.55 0.46 0.56 0.55 0.65 0.71 0.86 1.03 1.18 Europe 5Y 63.78 1.12 2.54 -11.33 81.85 52.94 11/19 0.50 101.87 0.07 -0.03 -0.05 -0.17 -0.48
3 10 - 15 Years 203.43 0.07 3714.27 0.89 9.45 2.17
Swiss Franc - - - - - - - - - - - - Japan 5Y 57.61 -0.15 0.90 -2.87 64.46 48.09 05/25 0.50 95.89 0.94 -0.07 -0.10 -0.36 0.00
4 5 - 15 Years 184.37 0.00 3308.41 0.47 7.15 1.90
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 74.95 1.08 5.78 -14.60 100.19 62.28 05/45 3.25 131.43 1.87 -0.07 -0.10 -0.46 -0.66
5 Over 15 Years 293.65 0.30 4213.23 1.84 15.77 2.54
US Dollar 0.12 0.22 0.12 0.22 0.15 0.25 0.25 0.35 0.50 0.60 0.85 0.90 Germany 04/18 0.25 101.37 -0.26 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 171.35 0.11 3169.45 0.86 8.63 2.31
Japanese Yen -0.07 0.03 -0.15 0.00 -0.10 0.10 -0.10 0.10 -0.05 0.15 0.00 0.20 10/20 0.25 101.06 0.05 -0.03 -0.05 -0.11 0.00
Emerging Markets 5Y 311.26 -6.47 5.63 5.64 326.58 278.35 08/25 1.00 103.34 0.66 -0.06 -0.09 0.00 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 353.31 -7.86 -0.69 4.27 370.30 337.73 08/46 2.50 128.93 1.35 -0.08 -0.10 -0.34 -0.72
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jul 30 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 70.19 -0.77 1.65 1.72 73.29 60.22 Greece 07/17 3.38 73.75 21.12 -0.53 1.46 -13.44 17.68
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 100.00 100.00 1 Up to 5 Years 309.68 -0.01 -0.86 -2.19 2354.71 -0.45 -0.84
02/25 3.00 53.10 11.92 -0.10 0.79 -2.52 5.72 2 Over 5 years 573.92 0.72 1.87 15.94 4227.01 2.00 16.88
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 112.30 -0.07 0.00 0.00 0.00 0.00 3 5-15 years 429.44 0.23 -0.06 3.10 3254.89 0.15 4.46
03/25 5.40 137.49 1.24 -0.08 -0.11 -0.44 -1.13 4 Over 15 years 709.03 0.92 2.64 22.66 5126.73 2.75 23.41
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 05/18 0.25 99.85 0.30 -0.03 -0.03 -0.34 0.00 5 All stocks 531.16 0.61 1.45 14.00 3960.81 1.63 15.01
05/20 0.70 99.47 0.81 -0.06 -0.05 -0.45 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
06/25 1.50 97.09 1.83 -0.07 -0.07 -0.49 0.00 Yield Indices Jul 30 Jul 29 Yr ago Jul 30 Jul 29 Yr ago
Crude Oil† Aug 48.39 -0.41 Corn♦ Sep 374.50 7.25 Jul 29 Jul 29 Prev return stock Market stocks
09/46 3.25 107.82 2.89 -0.05 -0.10 -0.42 0.00 5 Yrs 1.43 1.42 1.95 20 Yrs 2.56 2.57 3.20
Brent Crude Oil‡ 53.30 -0.30 Wheat♦ Sep 497.25 1.50 Can 4.25%' 21 130.35 -0.462 -0.502 -0.22 5.18 71879.12 7
Japan 07/17 0.10 100.18 0.01 0.00 0.00 0.00 0.00 10 Yrs 2.08 2.08 2.69 45 Yrs 2.53 2.55 3.26
RBOB Gasoline† Aug 1.77 -0.07 Soybeans♦ Aug 993.00 10.00 Fr 2.25%' 20 114.79 -0.658 -0.634 -0.57 20.31 220443.83 15
07/20 0.05 99.64 0.12 0.00 0.00 -0.05 0.00 15 Yrs 2.41 2.42 3.03
Heating Oil† Aug 1.61 -0.01 Soybeans Meal♦ Aug 358.00 7.70 Swe 0.25%' 22 108.64 -0.830 -0.851 1.09 30.63 220513.25 6
06/25 0.40 99.84 0.42 0.01 0.00 -0.10 0.00
Natural Gas† Aug 2.78 -0.08 Cocoa (ICE Liffe)X Sep 2144.00 5.00 UK 2.5%' 16 323.69 -1.294 -1.307 -0.20 7.90 498737.00 25
06/45 1.60 103.77 1.42 0.01 0.02 -0.06 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Sep 3227.00 16.00 UK 2.5%' 24 338.65 -0.717 -0.748 -0.12 6.82 498737.00 25
Netherlands 04/17 0.50 101.25 -0.23 0.00 0.00 0.00 0.00 Real yield Jul 30 Dur yrs Previous Yr ago Jul 30 Dur yrs Previous Yr ago
Uranium Aug 36.75 0.00 Coffee(Robusta)X Sep 1648.00 10.00 UK 2%' 35 230.83 -0.735 -0.756 0.68 9.08 498737.00 25
07/25 0.25 94.54 0.82 -0.06 -0.09 -0.33 0.00 Up to 5 yrs -0.72 2.76 -0.72 -1.02 -1.41 2.78 -1.42 -1.77
Carbon Emissions - - Coffee (Arabica)♥ Sep 125.00 3.25 US 0.625%' 21 102.24 0.246 0.250 -0.54 35.84 1087368.77 36
Diesel Sep 121.25 0.00 White SugarX 353.50 -3.70 New Zealand - - - - - - - Over 5 yrs -0.81 23.50 -0.78 -0.12 -0.84 23.59 -0.81 -0.16
US 3.625%' 28 135.86 0.676 0.250 0.24 16.78 1087368.77 36
Unleaded Sep - - Sugar 11♥ 11.25 -0.23 12/17 6.00 107.63 2.65 -0.01 0.05 -0.10 -1.25 5-15 yrs -0.69 9.97 -0.67 -0.27 -0.81 9.99 -0.78 -0.40
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/17 4.25 106.34 0.68 -0.01 -0.03 -0.06 -0.73 Over 15 yrs -0.82 29.11 -0.79 -0.09 -0.84 29.16 -0.81 -0.12
Base Metals (♠ LME 3 Months) Cotton♥ Oct 64.21 0.04 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 101.41 1.59 -0.03 -0.05 -0.26 0.00 All stocks -0.81 20.39 -0.78 -0.13 -0.85 20.54 -0.82 -0.18
Aluminium 1640.00 -19.50 Orange Juice♥ Sep 123.50 0.65 amount.
Aluminium Alloy 1740.00 -60.00 Palm Oil♣ Aug 556.75 3.25 Portugal 02/16 6.40 103.55 -0.25 0.00 0.00 0.00 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 5254.50 -72.00 Live Cattle♣ Aug 145.25 0.40 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 103.85 2.44 -0.08 -0.12 -0.55 0.00
Lead 1714.50 -6.00 Spain 04/18 0.25 99.78 0.33 -0.03 -0.03 -0.30 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Aug 211.08 -0.43
Nickel 11030.00 -210.00 Lean Hogs♣ Aug 79.45 -0.83 Spread Spread Spread Spread 10/25 2.15 101.30 2.01 -0.05 -0.02 -0.37 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 16235.00 65.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.53 1.07 0.00 -0.03 0.02 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1948.50 -14.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 116.51 0.74 0.00 -0.03 -0.21 0.00 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jul 29 Month Year Australia 2.94 2.28 0.67 Italy 1.83 1.18 -0.44 Switzerland 10/16 2.00 103.35 -0.79 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1087.50 -2.75 S&P GSCI Spt 383.65 -2.85 - Austria 0.91 0.26 -1.36 Japan 0.42 -0.24 -1.85 05/26 1.25 113.05 0.04 -0.02 -0.02 -0.17 -0.68
Silver (US cents) 1464.00 3.00 DJ UBS Spot 92.62 -2.76 - Belgium 0.95 0.30 -1.32 Netherlands 0.82 0.17 -1.45 United Kingdom 07/18 1.25 100.57 1.05 0.01 -0.02 0.00 -0.72 Data provided by Morningstar | www.morningstar.co.uk
Platinum 984.00 1.00 R/J CRB TR 205.25 -8.44 -30.97 Canada 1.50 0.85 -0.77 Norway 1.59 0.94 -0.68 07/20 2.00 102.31 1.52 0.00 -0.03 -0.03 0.00
Palladium 621.00 -3.00 Rogers RICIX TR 2443.25 - - Denmark 0.82 0.16 -1.45 Portugal 2.44 1.79 0.17 09/25 2.00 99.17 2.09 -0.01 -0.04 -0.10 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 285.43 -10.52 -35.81 Finland 1.13 0.48 -1.14 Spain 2.01 1.35 -0.26 01/45 3.50 117.83 2.63 -0.03 -0.09 -0.17 0.00
Iron Ore (Platts) 55.50 -1.25 UBS Bberg CMCI TR 14.23 -8.66 -31.88 France 0.94 0.29 -1.33 Switzerland 0.04 -0.61 -2.23 United States 06/17 0.63 99.79 0.74 0.05 0.03 0.11 0.00
Iron Ore (The Steel Index) 54.60 -0.70 LEBA EUA Carbon 7.51 -0.27 30.84 Germany 0.66 0.00 -1.61 United Kingdom 2.09 1.44 -0.18 06/20 1.63 99.98 1.63 0.01 -0.01 0.00 0.00
GlobalCOAL RB Index 56.40 0.15 LEBA CER Carbon 0.47 17.50 291.67 Greece 11.92 11.26 9.65 United States 2.27 1.61 0.00 05/25 2.13 98.74 2.27 -0.03 0.00 -0.11 0.00
Baltic Dry Index 1100.00 -4.00 LEBA UK Power 4039.00 -4.42 138.29 Ireland 1.24 0.58 -1.03 05/45 3.00 100.88 2.96 -0.04 -0.02 -0.23 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
20 ★ FINANCIAL TIMES Friday 31 July 2015

MARKETS & INVESTING

Equities
The Commodities Note

‘July squeeze’ disrupts

robusta coffee contract
A group of traders and
coffee roasters stand to
lose millions of dollars at
the end of this week, as a
rival dealer has amassed a
huge position in the
August robusta coffee
contract.
The so-called “July
squeeze”, to which traders
say they have alerted the
exchange, has driven up
robusta coffee for delivery
this month to its highest
premium in three years
against the next contract.
Some in the market are
fuming at what they see as
an excessively light-touch
approach by regulators in
London.
“This should not have
been allowed to happen,”
says one coffee trader, who
says he has complained to
exchange operator ICE
Futures Europe.
ICE Europe and the UK’s
Financial Conduct
Authority declined to
comment. Traders buying
uncommonly large
volumes of contracts on
the futures market to exert
a “squeeze” on investors
and traders with short
positions used to be a
common feature of niche
commodities such as
cocoa, coffee and cotton,
July/September robusta spread
$ per tonne
but they have become less
common in recent years.
The difference between
the July and September
robusta contracts has
jumped as much as $160 a
tonne since June and has
barely fallen back as
expiration approaches
today.
The July contract for
robusta beans, primarily
used for making instant
coffee, is now trading at
$1,755 a tonne while
September is at $1,639.
Financial authorities in
Europe are considering
tighter oversight.
“It’s disappointing,” says
a veteran broker. “I’m
surprised it has happened
given the amount of
market scrutiny there is
now.”
Europe’s authorities are
conducting their final
review of the Markets in
Financial Instruments
Directive (Mifid II) with the
aim of guarding against
systemic risks in equity,
fixed income and
commodity markets.
Under the new rules
being considered, buyers
and sellers of commodity
derivatives face tougher
restrictions on trading.
www.ft.com/commodities
Noble’s fall sparks exchange warning
Investors told to ‘exercise
caution’ when trading as
stock hits post-crisis low
DAVID SHEPPARD AND NEIL HUME
Shares in Asian commodity dealer
Noble Group, under fire over alleged
aggressive accounting practices, fell 12
per cent yesterday, leading the Singa-
pore Exchange to issue a warning to
investors.
The exchange said investors should
“exercise caution” in trading the com-
pany’s securities, which sank to their
lowest price since the financial crisis.
Noble told the Singapore Exchange
that it saw no reason for the fall, but
funds and analysts pointed to growing
pressure on the company, which has
struggled to shake off doubts from
Rules push raises risks for banks’ senior bonds
Regulators are gaining powers
to ‘bail in’ the unsecured debt
of lenders that hit trouble
THOMAS HALE
investors since Iceberg Research ques-
tioned its accounts six months ago.
It is the third time that the Singapore
Exchange has queried moves in Noble’s
shares in six months.
Shares in Asia’s largest commodity
trader have now fallen 57 per cent since
February and hit a six-and-a-half-year
low of S$0.52 yesterday.
The cost of insuring Noble’s debt has
more than doubled since February, and
Standard & Poor’s has warned its credit
rating could be downgraded to junk sta-
tus without greater transparency.
The share price tumbled despite a
series of share buybacks by the com-
pany, including personal purchases by
its founder and chairman Richard
Elman, a British-born former scrap
dealer who launched the company in
Hong Kong 28 years ago.
But the company, which is still head-
Analysis. Capital markets
Losing protection
European banks’ senior unsecured debt issuance
2013 to June 2015
Market cap*
quartered in Hong Kong, yesterday
entered its two week “blackout” period
before its second-quarter results.
During the blackout period the com-
pany and its senior officers are barred
from buying or selling its shares, accord-
ing to Singapore Exchange rules.
As one of the most shorted stocks on
the Singapore Exchange that means the
company may need to weather more
volatility before its results on August 13.
“The weak commodities market and
the prospect of an even stronger dollar
has highlighted internal issues plaguing
the company — this has continued to
attract short sellers to Noble,” said Relte
Stephen Schutte, analyst at Markit.
Mr Schutte said 11.8 per cent of
Noble’s free floating shares were out on
loan, more than double the amount in
early June.
Around the same time as its second-
12% quarter results, Noble will also release
findings from a review of its market-to-
The amount Noble market accounting practices by PwC,
Group shares fell
by yesterday as commissioned by the company’s board.
accounting fears But fund managers and analysts have
grow questioned whether a study paid for by
the company will assuage concerns.
11.8 %
The way Noble books profits on long-
term commodity deals and values its
Proportion of
Noble’s free stakes in assets has been at the centre of
floating shares out the criticism by US short sellers.
on loan, according Noble has been accused of recording
to Markit profits on some long-term commodities
agreements before it receives all the
money, which has led to fears that the
amount of money it receives will be
lower than accounted for.
Noble has robustly defended its
accounting practices, saying the value it
places on its long-term commodity con-
tracts and assets are consistent with
international accounting standards.
Value ($bn)
Deal value for rest of year

A new era for holders of unsecured sen-

Credit Suisse €41bn €40.9bn Deal value to end-July

800
€30.4bn
ior bank bonds beckons — and with it
150 more risk for a type of debt long Banco Santander €93bn
favoured by pension funds and insur-
100 ance companies.
Senior bonds, as their name implies, Deutsche Bank €39bn €27.2bn 600
50
rank ahead of subordinated debt and
equity in claims on a failed bank, and
offer lower levels of interest in line with Crédit Agricole €35bn €23.8bn
0 lower levels of risk.

-50
But that rationale is now changing,
spurred by new regulatory measures
BNP Paribas €69bn €23.5bn 400

designed to help “resolve” banks and

Jan
Source: Thomson Reuters
2015 Jul
keep them running during future bouts
of trauma.
BPCE Unlisted €23.2bn
200
€20.1bn
This entails a shake-up for investors
fastFT and financial institutions that have UBS €74bn
sought these debt instruments,

Weaker euro helps region’s

companies beat expectations
European companies are
delivering quarterly profits
ahead of expectations
thanks to a weaker euro
and improving economies
across the region, writes
Joel Lewin.
During the current
second-quarter earnings
season, two-thirds of
eurozone companies that
have reported results have
eclipsed earnings per share
estimates, according to
Citi, topping the long term
average of roughly 48 per
cent. “We think we’ve hit
the sweet spot in the cycle
for [eurozone] earnings
growth,” said Peter
Sullivan, head of equity
strategy at HSBC.
The robust performance
by eurozone companies is
seen as laying the ground
for pushing equity markets
back to their highs of April,
when investor sentiment
was buoyed by the launch
of quantitative easing by
the European Central Bank.
With companies in the
US S&P 500 facing their
first quarterly decline in
earnings year-over-year
since 2009, investors are
expected to focus on
brighter prospects for the
eurozone region.
Blue-chip companies in
the eurozone are on track
for 15 to 20 per cent
second-quarter earnings
growth, while US
companies are set for a
3 per cent fall in earnings,
according to HSBC.
The bank forecasts
earnings per share growth
of 25 per cent for eurozone
companies this year,
compared with a 2 per cent
contraction for UK
companies.
The weakening euro has
helped insulate eurozone
companies from the full
weight of macroeconomic
issues that have rocked
global markets, such as the
Greek crisis, the Chinese
stock crash and a possible
US rate rise. “It’s a battle
royal between the bright
earnings outlook and the
macro risks,” said Mr
Sullivan.
www.ft.com/fastFT
which notably incurred minimal
losses during the financial crisis. While
failing lenders were “bailed out” by tax-
payer money across the western world,
holders of senior bank debt had it
relatively easy.
“Some bondholders have yet to come
to terms with the degree of change com-
ing to the risk of senior unsecured debt,”
says Oliver Burrows, an analyst at
CRT Capital.
Holders of senior bonds now face the
overarching threat of losses, or “bail in”
should banks run into trouble, thanks to
the Financial Stability Board’s require-
ments for total-loss absorbing capacity
(TLAC), as well as the European Bank-
ing Authority’s minimum requirements
for own funds and eligible liabilities
(MREL), which is driven by the operat-
ing company model.
Beneath the arcane acronyms, these
regulatory pushes include a commit-
ment to the same principle: bond hold-
ers absorbing losses.
The imposition of these losses falls to
“resolution authorities”, which will have
the ability to bail in unsecured senior
debt — meaning its holders lose more
money when a bank fails.
“There has been a clear distinction
between bank debt that is funding, and
debt that is capital,” points out Mr Bur-
rows. “With the advent of MREL and
TLAC, that distinction is becoming
blurred.”
“In the future, shareholders and
creditors will have to bear the burden
of bank failure, minimising moral
hazard and risks to taxpayers,” the
HSBC €164bn €19.7bn
Standard Chartered €37bn €16.1bn
Other European banks €352bn
* As at June 12 2015
FT graphic Source: Dealogic
‘[Investors] EBA said in a paper this month.
The EBA estimates there could be
and an MREL shortfall of €510bn across
creditors 47 banks if senior bank debt is not
treated as loss-absorbing, assuming
will have to banks need to hold MREL instruments
bear the equivalent to 8 per cent of their total
liabilities and equity. If senior debt and
burden uncovered deposits over one year are
of bank included, however, that shortfall is only
€13bn.
failure’ “The debate around the treatment of
senior is key,” says Simone Verri, co-
head of investment grade debt at Gold-
man Sachs. “If you include it, then the
gap is manageable.”
In Europe, the capacity of individual
countries to tailor their own approaches
to the rules also poses complications. So
far, there are two clear approaches
developing. The contractual, or “Span-
ish” approach, involves creating a new
kind of bank debt — “tier 3” capital —
that absorbs losses, while leaving exist-
ing senior bonds unchanged.
The statutory, or “German” approach,
on the other hand, involves passing a
law that converts senior debt to make it
loss absorbing, which could apply
to existing outstanding debt.
In March, Fitch Ratings said the Ger-
man senior debt law would “improve
bank resolvability”.
“I think it sounds like the rest of
Europe will follow the German model,
and it wouldn’t surprise me if eventually
the Spanish follow the German model as
well,” says Lloyd Harris, a credit analyst
at Old Mutual Global Investors.
“The ECB likes the German model
and the ECB is the regulator,” he adds.
“I’d be very surprised if we don’t see that
subordination.”
Goldman Sachs believes the change
will not necessarily drive more issuance
of new debt to meet the requirements,
but that it will result “in a different mix
of quality, particularly as it relates
to senior”.
That means banks are likely to have to
pay more interest on their senior bonds.
Lenders are now working to convince
investors that their senior debt will not
be vulnerable, according to Mr Verri.
0
2005 07 09 11 13 15
€85.7bn
“Some of the banks have started to
include in investor presentations how
much loss-absorbing capital [they have]
— mostly without including senior
debt,” he says. “This would indicate a
desire to protect senior with enough loss
absorbing instruments before it.”
Spreads on unsecured senior bank
debt have not yet reacted sharply to the
uncertain shift looming on the horizon.
The regulations are set to come into
force over the next few years, and the
European Commission’s Banking
Restructuring and Resolution Directive
(BRRD) needs to be passed by all
EU member states, as it was in Greece
last week.
“There’s no such thing, going forward,
as a bank insolvency,” says Mr Harris.
“It’s called recovery and resolution, and
it’s where a bank would actually be
resolved in a set manner rather than
going bust.”
“[Before] there was no real set
rule-book” he adds. “It just seemed to
happen as and when the way the regula-
tor decided.”

Commodities Currencies

Oil rises after signs of slowing US production
DAVID SHEPPARD AND
HENRY SANDERSON
Oil rose about 1 per cent yesterday as
traders bet that the worst of the recent
rout might be over after data suggested
a slowdown in US production.
International benchmark Brent rose as
much as $1 a barrel to a high of $54.38
before easing to $53.88, an almost 4 per
cent recovery since hitting a near six-
month low close to $52 this week.
The US benchmark, West Texas Inter-
mediate, rose 32 cents to $49.09 a
barrel, up for the third straight session.
Other commodities remain under
pressure, with strength in the US dollar
weighing on those priced in the green-
back. Traders are watching for signs
that the US Federal Reserve will raise
interest rates in September, signalling
an end to a seven-year period of
accommodative monetary policy in the
world’s largest economy.
Crude has rebounded from a near 15
per cent slide, after weekly data from
the US Energy Information Administra-
tion on Wednesday showed a large drop
in stockpiles and a possible dip in out-
put, a sign US shale drillers may finally
be slowing in the face of lower prices.
US oil inventories still remain close to
record levels, however, and the chief
executives of leading energy companies
have warned they are hunkering down
for a prolonged period of lower prices.
BP and Royal Dutch Shell executives
said this week they expected prices to
remain soft in the medium term after
reporting large drops in second-quarter
profits, though they have received some
respite from refining operations that
have benefited from lower crude costs.
“The clear implication is that any
investment decision taken this year has
to be robust enough to survive the con-
tinuation of very low oil prices,” said
David Hufton at PVM oil brokerage.
Opec, the producer’s cartel, expects
demand to rise.
Iron ore yesterday reversed part of its
recent rally, falling 70 cents to $54.60 a
tonne, according to The Steel Index.
This month, the steelmaking ingredient
saw its biggest one-day drop since TSI
began to compile data in 2008, before
rising 24 per cent over 16 days.
Copper also resumed its slide, falling
1.2 per cent after a two-day rally on the
back of news of disruptions to mining
production in Zambia and Chile.
Gold has steadied following last
week’s large sell-off, but remains under
pressure below $1,100 a troy ounce. It
slipped 0.25 per cent to $1,093.60 a troy
ounce yesterday.
GDP data add to the dollar’s post-Fed rally
MICHAEL HUNTER
The dollar was approaching multiyear
highs yesterday after an upward revi-
sion to growth data added to a rally
sparked by the Federal Reserve’s signal
that it would raise rates in the coming
months.
The dollar index, which measures the
currency against a weighted basket of its
peers, was up 0.6 per cent to 97.59, leav-
ing the gauge only about 3 per cent shy
of the 12-year high touched in March.
The dollar has climbed 2 per cent so far
in July, fully reversing a decline of 1.5 per
cent for June, as investors have posi-
tioned their portfolios for tighter policy
from the central bank.
The benchmark touched its session
high after GDP data for the first quarter
were significantly revised higher to
show growth of 0.6 per cent, an
improvement on the previous reading
that showed a contraction of 0.2 per
cent in the period.
Data for the second quarter narrowly
missed forecasts — showing growth of
2.3 per cent, just shy of the 2.5 per cent
predicted, not enough of a miss to inter-
rupt the dollar’s ascent.
The rally for the world’s reserve cur-
rency followed the Fed’s statement on
Wednesday after a two-day policy meet-
ing, closely mirrored its June release in
indicating that a rate increase in 2015
was still on the cards, but the central
bank left its options open on timing as it
awaited more evidence on the strength
of the economic recovery.
“The Fed outlined the path to higher
rates in September,” said Eric Green,
economist at TD Securities. “With the
appetite to raise rates at the highs of the
cycle, and continued improvement in
jobs and the economy to be expected,
we continue to see September as the
high probability outcome.”
Enrique Diaz-Alvarez, chief risk
officer at Ebury, said: “The Fed has not
quite decided to hike rates in Septem-
ber, but it has hinted at what it needs to
see, citing ‘some’ further improvement
in the labour market. That it is not a
high bar.
“To me, this amounts to a require-
ment for no more than an absence of
bad surprises.”
The dollar’s gains also reflected
higher US Treasury yields, with the poli-
cy-sensitive two-year US note adding 2
basis points to 0.73 per cent, only a few
basis points below its highest level since
April 2011. US 10-year yields are climb-
ing 3bp to 2.32 per cent, while equiva-
lent maturity German Bunds are inch-
ing up 1bp to 0.72 per cent.
Friday 31 July 2015 ★★ FINANCIAL TIMES 21

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Change on day
Jamie
Chisholm
Dollar rises as US growth data fuel 12pt semibold S&P 500 index
9.6pt regular Change on day
for 1,2,3
0.08%

expectations of rate rise this year

The next two Fridays could go a long
way in determining whether a Federal
Reserve rate rise arrives in September.
Of the two issues the US central bank
must address — jobs and inflation —
most analysts think it is the former
that carries greater heft in deciding
when borrowing costs should rise.
Consumer price inflation remains
benign, meaning there is little need for
policy to be tightened on that account.
If anything, falling energy costs are
delivering disinflation, encouraging
rates to stay lower for longer.
But the Fed will also be keeping a
close eye on the datapoint where jobs
and inflation merge. The employment
cost index for the second quarter will
be published at the end of this week.
Quarter-on-quarter wage growth of
0.6 per cent is forecast — year-on-year
is about 2.6 per cent — but any sign
that earnings are accelerating at a
faster pace will make the Fed’s trigger
finger that bit more twitchy. (It might
also concern equity investors because
higher labour costs should eat into
company's presently record high profit
margins).
Then, on August 7, we get the July
non-farm payrolls (NFP) report. By the
time Janet Yellen, Fed chair, and
colleagues gather for the next
scheduled meeting, in September, they
will also have had a chance to peruse
the August NFP report, too.
Average NFPs greater than 200,000
net jobs created and expectations of
an autumn “lift-off” will harden further.
Meanwhile, the dollar index is
creeping back towards its 12-year highs.
Any lurch higher may spook markets.
jamie.chisholm@ft.com
US employment cost index
for civilian workers
Annual % change
Recession
1982 90 2000 10
Source: Thomson Reuters Datastream
Currency less than 3%
short of March’s 12-year
high while two-year
Treasury bond yield in
sight of five-year peak
DAVE SHELLOCK
The dollar and shorter-term US Treas-
ury bond yields crept back towards
multiyear highs amid mounting expec-
tations that the Federal Reserve would
raise interest rates this year.
The US central bank painted a rela-
tively upbeat picture of the US economy
in its latest policy statement, released
yesterday after a two-day meeting of its
Open Market Committee.
Furthermore, analysts latched on to a
minor tweak to the wording of the state-
ment compared with that released in
June — the Fed said that “some further
improvement” in the labour market
was a prerequisite for raising rates,
rather than just “further improve-
ment”.
“Does this mean the bar has been low-
ered for what they need to see to pull the
trigger?” asked Jim Reid, macro-strate-
gist at Deutsche Bank.
“It’s still pretty vague and no doubt
thousands of analysts around the globe
will be spending hours debating the
addition of a single word.”
Kit Juckes, FX strategist at Société
Générale, said: “On such small details
hangs market sentiment, but we can
conclude firstly that the first hike is get-
ting closer, and secondly that when it
happens still depends on how data
evolve.”
On that front, the latest US GDP
6 report certainly appeared to play to
4 expectations of a move by the Fed this
2 year, although exactly when remained
0 open to conjecture.
15 Although the 2.3 per cent growth in
second-quarter GDP was slightly less
‘Some’ Fed statement: FT.com/video
John Authers suggests that employment data will be watched
even more obsessively than usual over the next two months
than expected, the initially reported 0.2
per cent contraction in the first quarter
was revised to a 0.6 per cent expansion.
“This essentially cancels out the
second-quarter miss,” said Alexander
Lin, US economist at Bank of America
Merrill Lynch.
The acceleration was largely driven
by a big rebound in consumer spending,
with goods consumption particularly
robust due to strong demand for cars.
“Today’s US GDP numbers show an
expansion that continues to be slow but
steady,” concluded David Kelly, chief
global strategist at JPMorgan Asset
Management.
Noting that the level of initial jobless
claims last week remained low, he
Mike Mergen/Bloomberg News.
added: “On balance, this shouldn’t
change expectations for Fed action in
September.”
But Alasdair Cavalla at the Centre for
Economics and Business Research high-
lighted that the Fed was still awaiting a
pick-up in inflation.
“Core inflation is around the 2 per
cent target, reflecting buoyant labour
market conditions,” he said.
“However, if global commodity prices
fall further, as expected, they may start
to influence domestic price expecta-
tions and push down the core rate in
turn.
“Combined with today’s evidence that
growth is steady but probably still below
its full potential, this leads us to expect a
2120
2100
2080
2060
2040
Jul 2015
December lift-off for interest rates.” US equities The S&P 500 paused for
The firming up of expectations for US breath after two days of solid gains,
rates to rise this year helped push the with Procter & Gamble under pressure
dollar index, a measure of the US after reporting yet another drop in
currency against a basket of peers, up quarterly sales
0.5 per cent, leaving it less than 3 per
cent short of a 12-year high it reached in FTSE 100 index
March. Change on day 0.57%
The euro was down 0.5 per cent at 6800
$1.0928 while the dollar was 0.2 per cent 6700
higher versus the yen at Y124.13. 6600
The yield on the two-year US govern- 6500
ment bond, meanwhile, was up 2 basis
6400
points at 0.73 per cent and within sight Jul 2015
of its highest level since April 2010.
However, the 10-year Treasury yield UK equities Energy stocks were lifted
was down 1bp at 2.26 per cent while that by a rebound for crude oil prices, with
on the 10-year German Bund fell 6bp to Royal Dutch Shell further boosted by
0.65 per cent. its announcement of job and capital
Stock markets put in more mixed spending cuts
performances as participants digested a
particularly busy calendar of earnings Eurofirst 300 index
reports.
Change on day 0.62%
In New York, the S&P 500 ended flat 1600
at 2,108 following a 2 per cent rise over
the previous two sessions. That left the 1550
US equity benchmark about 1.2 per cent 1500
below the record high it reached in May.
1450
Facebook pared an early fall that
Jul 2015
came after the social media group
revealed a drop in quarterly profits. European equities The Eurofirst 300
Across the Atlantic, the FTSE rose for a third session, helped by
Eurofirst 300 gained 0.6 per cent, several forecast-beating earnings
helped by positive results from the likes reports and upbeat remarks on the US
of Siemens and Nokia, as well as the economy from the Federal Reserve
weaker tone of the euro.
In Tokyo, the Nikkei 225 rose 1.1 per
cent. Nikkei 225 index
Market watchers also kept a wary eye (’000) Change on day 1.08%
21.0
on events in China as the Shanghai
Composite index fell 2.2 per cent, 20.5
helping to maintain concerns about the 20.0
possibility of a “hard landing” for the
country’s economy. 19.5
Jul 2015
Such worries have pressed commod-
ity prices in recent weeks, and Brent Japanese equities Positive earnings
crude slipped a further 0.1 per cent to from Hitachi and Nintendo sent shares
$53.31 a barrel, while copper shed 1.3 in both companies up sharply as the
per cent in London to $5,260 a tonne. Nikkei rose to its best level in a week
Gold was $9 lower at $1,087 an ounce.

Whole Foods Market The stock was downgraded by four

Wall Street
Whole Foods tumbles
on slowing sales growth
after NY weight audit
Mamta Badkar
Whole Foods shares took a spill after the
upmarket US grocer reported slowing
same-store sales growth following price
audits in New York that attracted
negative press.
The company said that same-store
sales, a key industry metric, had risen
1.3 per cent in the quarter, below
forecasts for 2.8 per cent growth. The
pace also cooled from the 3.6 per cent
rise in the previous quarter.
“Comparable sales dropped sharply
in week 11, after our New York City
weights and measures audit received
national media attention and averaged
just 0.4 per cent for the last two weeks of
the quarter,” Walter Robb, chief
executive, said.
The Department of Consumer Affairs
said in June that the grocer “routinely
overstated the weights of its pre-
Share price ($)
Jan 2015
Source: Thomson Reuters Datastream
Jul
Indices
S & P 500
Close
2108.63
change
DJ Industrials
Nasdaq Comp
17745.98
5128.78
Russell 2000 1204.70
VIX 12.13
US 10 yr Treas Bd 2.27
US 2 yr Treas Bd 0.74
packaged products”, which resulted in
customers being overcharged.
Comparable sales have seen “slight
improvement” in the fourth quarter to
date and Mr Robb said that the issues
“were not systematic” but were caused
by “inadvertent human error”.
Whole Foods also blamed slower
growth on an earlier Easter holiday and
difficult comparisons with a year earlier
when the supermarket chain
discounted products in a bid to lift store
traffic. The company has also faced
increased competition as rivals seek to
cash in on the demand for organic foods.
Profits rose 2 per cent from a year
earlier to $154m, or 43 cents a share, in
the three months to July 5. Sales rose
nearly 8 per cent to $3.6bn. Analysts on
Wall Street had forecast earnings of 45
cents a share on sales of $3.7bn.
banks following the results.
Trading Directory
55 The retailer’s new store concept,
50 called 365 by Whole Foods Market,
45 targeted at millennial consumers, has
40 also received mixed reviews.
35 Shares of Whole Foods, which have
declined 28 per cent so far this year, fell
11.6 per cent to $36.08.
Day's ConocoPhillips shares fell 1.5 per cent
0.06
to $52.10 after the US oil and gas
producer swung to a loss in the second
-5.41
17.05
quarter amid a protracted drop in oil
prices. It reported a net loss of $179m, or
-8.35 15 cents a share, below analysts’
-0.37
estimates for earnings of 6 cents a share.
-0.03
This compared with profits of $2.1bn in
0.05
the same period a year ago. Adjusting
for one time items, however, earnings of
7 cents a share topped forecasts.
Bunge shares fell 5.1 per cent to $81.27
after the company reported a 70 per
cent drop in second-quarter profits.
Bunge said that a drop in profits at its
Brazilian edible oils business, which
experienced “dramatic pressure”, along
with weak margins in its seed
operations had weighed on results.
Qorvo was the worst performing
stock on the S&P 500, after the
chipmaker’s second-quarter outlook
missed analysts’ expectations. Its shares
fell 14.2 per cent to $60.49.
US stocks were mixed after the latest
data showed that US economic growth
rebounded in the second quarter.
The S&P 500 and Dow Jones
Industrial Average were little changed
at 2,108.63 and 17,745.98, respectively.
The Nasdaq Composite gained 0.3 per
cent at 5,128.79.

London
Tullow rises off lows on
Goldman takeover tip
Bryce Elder
Tullow Oil edged above a 10-year low
after Goldman Sachs tipped the African
explorer as a likely takeover target.
Oil majors need M&A to replace their
high-cost production and the global top
seven could raise $150bn of firepower
without stretching balance sheets,
argued Goldman. Deferring capital
expenditure on fields where break-even
is above $60 a barrel might save them a
further $325bn, it forecast. Tullow is an
ideal target as its 1.3bn barrels of proven
and probable reserves are in similar
geographies to the majors, with key
growth projects in Ghana, Kenya and
Uganda having an average price of $38 a
barrel, it said.
But Tullow’s funding position looks
tight ahead of its Ten project coming on
stream in mid-2016, which creates an
opportunity for “balance sheet
arbitrage”, Goldman told clients.
Tullow rose 4.7 per cent to 246.6p.
The shares have fallen 85 per cent from
their peak of more than £16 in 2012.
Earnings season meant a wider
market rally continued into a third
straight day, lifting the FTSE 100 by 0.6
per cent or 37.87 points to 6,668.87.
Royal Dutch Shell alone added nearly
20 points to the index, with its B shares
rising 4.7 per cent to £18.61 on better
than expected earnings and an outlook
focused on cutting spending to fund
shareholder returns.
HellermannTyton jumped 41.7 per
cent to 540.5p after Delphi Automotive
agreed to buy the cable-tie maker for
£1.07bn cash.
Babcock was down 5.1 per cent to
985.5p after cutting guidance for its
recently purchased helicopter services
division. Revenue growth for the unit
will be flat to 5 per cent, rather than the
15 per cent Babcock had expected in
May, because of its failure to win a
French firefighting contract and weak
demand from oil and gas customers.
Vedanta Resources lost 3.9 per cent
to 385p on a Merrill Lynch downgrade.
Broadband provider TalkTalk
dropped 5.2 per cent to 309.3p after
figures from rivals BT and EE suggested
it was losing market share.
Talk of stockbroker consolidation
provided much of the interest among
the small-caps. One story doing the
rounds was that QInvest, the Qatar
investment bank, has been sounding
out possible buyers for its 47 per cent
stake in Panmure Gordon, which was
untraded at 150p.
Talk of tough trading for the smaller
brokers has rekindled speculation
about possible mergers. As well as
offering the potential for cost cuts,
Panmure’s brand might be valuable to a
peer such as N+1 Singer, said dealers.
22 ★ Friday 31 July 2015

INSIGHT Analysis. Equities

Michael
Mackenzie
China slowdown drags on blue-chip groups
Industrial companies most S&P 500 sales generated in
Asia
vulnerable as bull run’s end
Economic clouds hint threatens global GDP growth
Per cent
8.0
7.0
at summer storm NICOLE BULLOCK AND ERIC PLATT 2010 11 12 13 14
6.0

looming for investors Global blue-chip companies have navi-

gated choppy waters of late, enduring
Company outlooks on China
“ Nothing that's happened has
falling energy and commodity prices in changed our fundamental view
that China will be Apple's Apple
conjunction with a rising dollar. Now largest market at some point in

A
summer break for investors looks highly
unlikely this year. While many of us are
already enjoying or planning some down
time, asset prices appear vulnerable in the
coming weeks against a backdrop of uncer-
tainty driven by China and the US Federal Reserve.
No matter the recent easing in tension between Greece
and its creditors, the big story framing the rest of summer
is a timeworn classic, last seen during the US bond market
taper tantrum of 2013, and more spectacularly in 1998.
Emerging markets are under severe pressure, with a
JPMorgan index of leading EM currencies loitering at the
lowest level since 1999, hampered by a one-two punch of a
stronger dollar and collapsing commodity prices.
another wave is rocking the boat: China. the future. It's true ... that the equity
The country’s economy, which has markets have recently been volatile.
delivered relentless growth amid seem- This could create some speed bumps
in the near term. ”
ingly insatiable demand, has been slow-
ing. Then this month the stock market “ The slowdown in the China
economy is a factor and the Freeport
rally ran aground, raising questions carry-on effects of the drop -McMoRan
about the effect on China’s economy and in stock prices in China and the impact
how this plays out globally. on financial investors is certainly being
shown in the copper price. ”
For many US and European multina-
tionals over the past decade, China, with “ Asia-Pacific region was down
30%, with much of that decline
its huge population and booming in China and Japan. In China Caterpillar
demand, has become an important the construction industry continued to
source of revenues and helped bolster weaken. ”
their operations in the face of slower Sources: S&P Dow Jones Indices; Factset Callstreet

The tumult reflects a convergence between the outlook domestic growth.

for China’s economy and markets with US central bank “The theory is that the slowdown in Apple says it those that export, have to be concerned Pacific region, mostly from China and of the drop in stock prices in China and
policy intentions. China is meaningful and could slow will continue about the slowdown in the Chinese Japan, FactSet says. the impact on financial investors is
Given the scale of intervention by China’s authorities in overall global gross domestic product investing as economy,” says Randy Frederick, man- This week, Ford became the first big certainly being shown in the copper
trying to stem their equity market rout, investors are more growth and have a ripple effect,” says ‘China will be aging director of trading and derivatives carmaker to revise estimates for China price.”
and more sceptical that the country’s economy is expand- Oliver Pursche, chief executive at Bru- Apple’s largest at Charles Schwab. car sales down, potentially marking the Still, he expects China to continue to
ing at the official rate of 7 per cent. Talk of China growing at derman Brothers, the New York-based market at some Michael Lynn DeWalt, the vice- first full-year sales fall for the industry be a big consumer of copper.
less than 5 per cent has stirred markets of late, hence privately owned broker-dealer. point in the president of Caterpillar’s finance serv- in the largest market since 1990. On the flip side, some consumer com-
renewed downward pressure on commodity prices such as During this quarterly reporting sea- future’ ices unit, said in an earnings call with Mark Fields, Ford chief executive, panies have shown resilience and execu-
oil, copper and iron ore. That nasty price action is weighing son, the effect of a slowing China has Feng Li/Getty
analysts that the Asia-Pacific region for said: “We’re still very bullish on China tives are upbeat about prospects in the
on exports across emerging markets and spurring broad been a prevailing topic with companies, its construction arm was down 30 per but it’s going to go through its fluctua- country. Nike said revenue grew 20 per
deflationary worries. including Caterpillar, Apple and Ford. cent in the latest quarter with much of tions. That’s what happens in emerging cent last quarter in China while Star-
Against that backdrop, we have a clearly ascendant US The word “China” was mentioned in that decline in China and Japan. markets.” bucks said business in China was out-
dollar, reflecting expectations nearly half of 186 earnings calls con- According to FactSet economic Audi, part of the Volkswagen group, performing that of other regions.
that the Fed will finally shift ducted by S&P 500 companies from the estimates, real, year-over-year GDP also lowered its global annual sales out- While China could not continue to
borrowing rates north in the start of June through to the end of last growth in China is projected to be 6.9 look due to concerns over demand from grow at a breakneck pace forever, many
coming months, perhaps as
Investors are week, according to FactSet. per cent, which would be a continuation China this week. That came as Siemens companies remain optimistic for the
early as September. sceptical China’s Investors caution that industrial com- of the declining growth seen in recent reported yesterday that Chinese reve- longer term.
Simon Derrick at BNY Mel- panies, in particular, are vulnerable to years. nues fell 8 per cent year on year. Apple chief Tim Cook told analysts
lon highlighted this week how
economy is China. So far this year, S&P industrials However, many investors suspect the Another China-sensitive area is com- that Apple was extremely bullish on
the summers of 1998 and 2013 expanding at the are down nearly 4 per cent, well behind true rate of growth may be lower, and it panies associated with commodities. China and will keep investing.
saw a hawkish stance from the broad market’s 2.4 per cent rise. The faces a potential hard landing given the Falling copper prices are crucial for “Nothing that’s happened has
the Fed foster turmoil in
official rate of 7% materials sector has fallen nearly 6 per huge build up in debt over the decade. US-based natural resource company changed our fundamental view that
emerging equity and cur- cent, hammered by sliding commodity Still, China continues to be a vital geo- Freeport-McMoRan, and chief China will be Apple’s largest market at
rency markets. “In both cases the Fed subsequently took a prices for many resources and concerns graphic market for the S&P 500. Con- executive Richard Adkerson told inves- some point in the future.’’
more dovish position that ultimately helped international over demand from China. stituent companies generate about 9 per tors: “The slowdown in the China econ- Additional reporting by Kadhim Shubber in
markets stabilise,” he said. “Big industrial companies, especially cent of sales in aggregate from the Asia- omy is a factor and the carry-on effects New York
Any recurrence stands to take some time, given the nat-
ural focus of US officials on an expanding domestic econ-
omy, buoyed in part by cheaper oil for American drivers
seen as eventually bolstering consumer spending. Capital markets
With many central banks around the world having
eased policy this year — thereby driving up the US dollar —
to combat their weakening economies, the Fed can down-
play the risk of contagion unsettling domestic markets.
Blackstone returns to
After the central bank’s latest policy statement on
Wednesday, investors were left guessing as to whether the
CMBS loan activity
Fed, shifts into a higher policy gear in September or waits
until December.
An open sense of timing over rate rises that spurs further THOMAS HALE connected with the invest-
dollar strength and exacerbates EM/commodity weakness ment banks.”
is not good news for areas under pressure within US equity Goldman Sachs is securitis- Mr Gatfield suggested that
and bond markets. And all before the poor liquidity typical ing a loan to Blackstone the company’s proximity to
of August that can exacerbate swings in asset prices. backed by commercial real the US CMBS market —
Strip out the buoyant performance of US healthcare and estate across the UK, high- which has recovered faster
consumer stocks and you can see why the S&P 500 only lighting a growing role for than its European equivalent
stands some 2 per cent higher for 2015, weighed down by non-banks in a market that — has contributed to Black-
the energy, materials and industrials sectors. has struggled for traction in stone’s activity on the other
Another concern is how a small number of stocks are recent years. side of the Atlantic.
leading, a pattern together with lofty valuations and the Securitisation involves tak- The Goldman Sachs deal,
prospect of the first quarter of negative earnings-per-share ing loans — in this case for the which was launched last
since 2009, all suggesting that a market top beckons. financing of commercial real week and is now being mar-
Dan Greenhaus, strategist at BTIG, says: “Simply put, a estate — and packaging them keted to investors, was
stock market increasingly driven by fewer and fewer into bonds, which can then accompanied by a €316m
stocks, at valuation levels we deem ‘elevated’ as Fed policy be sold on to investors. deal from Deutsche Bank.
is expected to tighten later in the year, does not make for a The new deal, one of the “Two in one week is pretty
compelling market backdrop.” largest commercial real unheard of at this point,” said
The US corporate debt market also looks pallid. A surge estate securitisations in Jonathan Banks, a director at
in mergers and acquisitions plus huge share buybacks, has Europe this year, is based on Mount Street, which services
spurred a flood of bond issuance. Moody’s BAA average 95 per cent of a £680m single loans for CMBS. He said the
yield is back above 5 per cent, up from 4.40 per cent earlier loan, and is expected to price two deals come ahead of an
this year, while lower quality debt sold by oil and mining today. expected summer lull.
companies has been hammered. The loan — part of a refi- Other issuers are likely to
Market volatility is closely associated with any major nancing on assets acquired take advantage of a reopened
shift in Fed policy, and we are certainly seeing signs of that by Blackstone several years CMBS market after the sum-
at present. Solid US employment reports over the next six ago — is backed by a portfolio mer break, which could see
weeks could well pave the way for a September Fed move, of 42 logistics assets through- the market grow to new post-
but significant escalation in global market stress in the out the UK. crisis heights. “Towards the
coming weeks may well cast the decisive vote. The broader market for back end of May, the pipeline
securitisation has struggled of deals that we were aware
michael.mackenzie@ft.com since the financial crisis. of was actually as busy as it
Issuance of commercial has been since the crisis,”
mortgage-backed securities said Mr Gatfield.
in Europe was just €4.7bn Upcoming deals are likely
last year, compared with well to involve further examples
over €40bn in 2007, accord- of the securitisation of
More comment and data on ft.com ing to data company Trepp investment banking loans to
LLC. US private equity groups. In
The latest deal highlights June, Goldman launched an
Y Fast FT Our global economies, headed Blackstone’s rising role in Italian CMBS deal, based on a
team gives you market- by Brazil, Russia, India European real estate, and its loan to Apollo, which was
moving news and views, and China. indirect relationship with subsequently put on hold
24 hours a day, five days ft.com/beyondbrics commercial real estate secu- and is yet to be closed.
a week. ft.com/fastft ritisation in the continent, In Europe, Blackstone is
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a typically through loans from mainly relying on banks such
irreverent financial blog. look at what is driving investment banks. as Goldman to securitise
Join Paul Murphy and the global currency “What is interesting post- loans, rather than issuing
Bryce Elder for the daily market. ft.com/podcasts crisis is how dominant Black- securities backed by assets to
Markets Live session at stone as a single sponsor is in investors itself.
Y Lex Video Analysis the CMBS market,” said Charles Roberts, a partner
11am. ft.com/alphaville
and opinion from the Euan Gatfield, head of Euro- at law firm Paul Hastings
Y beyondbrics News and team on the hot issues pean CMBS at the rating LLP, suggests this may be
comment from more affecting companies and agency Fitch. “They’ve obvi- related to “limitations on its
than 40 emerging markets. ft.com/lexvideo ously got a huge market ability to take certain kinds
presence and they’re well of interest rate risk”.
 FRIDAY 31 JULY 2015
Red tape sprawl
Gillian Tett: America’s
entrepreneurial halo slips — PAGE 11
Big companies
raise red flag
on profits hit
by China woes
3 Alarm at slowdown in vital market
3 Weaker growth set to damage sales
MICHAEL STOTHARD — PARIS
CHRIS BRYANT — FRANKFURT
Some of the world’s largest companies
have sounded the alarm over the slow-
down in the Chinese economy, warning
that weaker growth would hit profits in
the second half of the year.
Car companies such as PSA Peugeot
Citroën, Audi and Ford have slashed
growth forecasts while industrial goods
groups such as Caterpillar and Siemens
have all spoken out on the negative
impact of China.
The warnings are a sign that China’s
weaker growth and its stock market
rout this month are creating a headache
for global corporates that have long
relied heavily on the world’s second-
largest economy to drive revenues.
Audi and France’s Renault both cited
China as they cut their global sales tar-
gets yesterday, with Christian Klingler,
sales chief at Audi parent Volkswagen,
predicting “a bumpy road” in the coun-
try this year.
Elsewhere, Peugeot slashed its growth
forecast for China from 7 per cent to 3
per cent, while earlier this week Ford
predicted the first full-year sales fall for
the Chinese car market since 1990.
“In Asia, the China market has clearly
slowed,” said Akhil Johri, United Tech-
nologies’ chief financial officer, at the US
industrial group’s earnings call last
week.
“Companies thought that China was
the land of opportunity, but it’s not liv-
ing up to that promise,” said Ludovic
Subran, chief economist at Euler
Hermes. “They realise the business
Outcry over Chinese
artist’s visa restriction
MPs and leading arts figures have
condemned a decision by the UK to
deny a six-month business visa to Ai
Weiwei, the Chinese dissident artist,
preventing him from being in London
at the same time as President Xi
Jinping. Mr Ai said his entry visa was
restricted to 20 days because he had
failed to declare a ‘criminal conviction’,
meaning he will miss part of his own
exhibition at the Royal Academy.
Analysis i PAGE 2
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environment is changing for the worse.”
China’s slowdown, which follows
years of extraordinary growth, has been
particularly startling in recent months,
with figures last week showing that the
country’s factory activity in July con-
tracted the most in 15 months.
The poor figures coincide with a time
of turbulence on the Chinese stock mar-
ket. The Shanghai Composite shed 8.5
per cent on Monday, its steepest drop
since 2007. The fall came despite a
string of interventions by Beijing to
stem the slide, including a ban on short
selling and an interest-rate cut.
In the consumer goods sector, brewer
Anheuser-Busch InBev said yesterday
that volumes fell 6.5 per cent in China as
the result of “poor weather across the
country and economic headwinds”.
Among industrial goods companies,
Schneider Electric, one of the world’s
largest electrical equipment makers,
reported a 12 per cent fall in first-half
profit and cut guidance because of
“weak construction and industrial mar-
kets” in China. Jean-Pascal Tricoire,
chief executive, said that there was
“persistent weakness in China”.
Siemens, the German industrial
group, said yesterday that sales in China
fell 8 per cent in the quarter and Chinese
new orders slid 2 per cent when
adjusted for currency swings.
“Does China stabilise? That’s proba-
bly the billion dollar question,” said Joe
Kaeser, Siemens chief executive.
Additional reporting by Nicole Bullock in
New York and Catherine Bennett in Paris
Drag on blue-chip groups page 30
Celgene pays hefty $7bn premium for
its early reluctance to swallow Receptos
DAVID CROW — NEW YORK
It turned out to be a mistake that cost
almost $7bn. When Celgene’s chief
executive, Bob Hugin, announced his
company was buying Receptos, a Cali-
fornian biotech, for $7.2bn earlier this
month, his jubilation must have been
tempered by the knowledge that he
could have bought it for a fraction of
the price less than two years ago.
Celgene came within touching distance
of buying Receptos in October 2013,
when the company’s market capitalisa-
tion was just $550m, according to a
securities filing.
The pair got as far as exchanging
drafts of a merger agreement, but Cel-
gene pulled out at the eleventh hour. On
that day, the Receptos share price was
$29.97; Celgene ended up paying $232.
The cost of Celgene’s procrastination
STOCK MARKETS
Jul 30 prev %chg
S&P 500 2108.63 2108.57
Nasdaq Composite 5128.78 5111.73
Dow Jones Ind 17745.98 17751.39
FTSEurofirst 300 1571.22 1561.48
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FTSE All World $ 280.47 280.79
WORLD BUSINESS NEWSPAPER
Going dark
Encryption: the growing challenge
for law enforcement — BIG READ, PAGE 9
Primed Top Gear’s departing trio go
online to sign $250m Amazon deal
Torque show hosts: Richard Hammond, Jeremy Clarkson and James May — Matt Jelonek/WireImage
MATTHEW GARRAHAN — NEW YORK
MURAD AHMED AND HENRY MANCE
LONDON
Amazon has signed the depart-
ing presenters of BBC’s Top
Gear show in a blockbuster
$250m deal, a fresh sign of how
internet groups are encroach-
ing on the terrain of traditional
broadcasters.
The world’s largest online
retailer said it had signed Jer-
emy Clarkson, Richard Ham-
mond and James May to
present a television series that
will be premiered in 2016.
Amazon declined to com-
ment on the price but people
familiar with the situation told
is one of the starkest signs yet of the
massive surge in valuations for young
biotech companies, a number of which
have been sold for ever richer premi-
ums.
The Celgene-Receptos deal comes
amid a mergers and acquisitions boom
in the broader healthcare sector, where
$390bn of transactions have been
announced so far this year, according to
Thomson Reuters.
In the 21 months between Celgene
walking away and coming back to ink a
deal, Receptos’s main drug, Ozanimod,
scored several big successes in clinical
trials for ulcerative colitis, and relapsing
multiple sclerosis. The apparent effi-
cacy of its drug, which is still being
tested in large, late-stage trials, pushed
its share price steadily higher.
The securities filing also details how
Receptos and its financial advisers,
World Markets
CURRENCIES
Jul 30 prev
0.00 $ per € 1.093 1.103 € per $
0.33 $ per £ 1.561 1.565 £ per $
-0.03 £ per € 0.700 0.705 € per £
0.62 ¥ per $ 124.335 123.820 ¥ per €
0.23 ¥ per £ 194.107 193.796 £ index
0.57 € index 85.630 85.843 $ index
0.47 SFr per € 1.059 1.062 SFr per £
0.58 COMMODITIES
0.40 Jul 30
1.08 Oil WTI $ 48.42
-0.49 Oil Brent $ 53.30
-0.11 Gold $ 1087.50
the Financial Times the deal
was worth $250m for 36 epi-
sodes over three years.
The show will be available
only to subscribers of Amazon
Prime, the service that offers
perks such as next-day deliver-
ies, online photo-storage and
video and music streaming.
The deal was negotiated by
Ari Emanuel’s William Morris
Endeavor group. It is one of the
largest ever agreed by a digital
streaming group — Netflix paid
$100m for two seasons of House
of Cards, for example — and is
evidence of the intense compe-
tition among rival operators to
sign proven talent that can
deliver large audiences for new
Centerview Partners, consistently
pushed Celgene to pay more for the
company during months of cat-and-
mouse discussions.
In February of this year, Celgene
returned to the negotiating table, offer-
ing to pay $193 per share. At that point
six other potential acquirers were con-
tacted by Centerview, Receptos’s finan-
cial advisers.
By April, several media outlets
reported rumours that Receptos was up
for sale, pushing its shares as high as
$203. Receptos executives pressed Cel-
gene for more cash. In May, Celgene
again walked away.
The deal was revived last month when
Mr Hugin phoned his counterpart at
Receptos, Faheem Hasnain, leading to
Celgene making a $230 per share offer,
which it sweetened to $232 a fortnight
before signing the deal.
INTEREST RATES
Jul 30 prev price
0.915 0.907 US Gov 10 yr 98.75
0.641 0.639 UK Gov 10 yr 99.21
1.429 1.419 Ger Gov 10 yr 103.38
135.830 136.599 Jpn Gov 10 yr 99.89
93.915 93.505 US Gov 30 yr 100.90
104.027 104.178 Ger Gov 2 yr 101.39
1.514 1.507 price
Fed Funds Eff 0.12
prev %chg US 3m Bills 0.05
48.79 -0.76 Euro Libor 3m -0.02
53.38 -0.15 UK 3m 0.58
1090.25 -0.25 Prices are latest for edition Data provided by Morningstar
UK £2.50 Channel Islands £2.80; Republic of Ireland €3.00
Walter the dentist
New face of the great white
hunter— ROBERT SHRIMSLEY, PAGE 10
Briefing
i Ex-US banking regulator quits Santander
Former US banking regulator Sheila Bair has
resigned from the board of Banco Santander after
18 months, as the Spanish bank yesterday reported
a 17.6 per cent rise in second-quarter net profit to
€1.71bn.— PAGE 15; NET PROFIT UP, PAGE 17
i Unease grows at Tory green energy U-turn
Siemens has weighed into a growing row over the
number of green energy measures that the
Conservative government has watered down or
scrapped since it came to office in May.— PAGE 3
i Debris provides hope of MH370 lead
Malaysia’s prime minister has
confirmed that a piece of aircraft
debris that washed up on a beach on
the Indian Ocean island of La
Réunion was almost certainly from a
Boeing 777, the aircraft type of flight
MH370.— PAGE 8
i Tsipras wins battle with Syriza far left
The Greek PM’s plan for an extraordinary party
congress in September to examine the bailout once
it has been completed was approved by Syriza’s
200-strong central committee.— PAGE 4
i New MPC member’s business role in focus
The business interests of Gertjan Vlieghe, the
incoming member of the Bank of England’s
Monetary Policy Committee, are to be scrutinised
by a parliamentary committee.— PAGE 2
i IHG checks in for talks with Starwood
InterContinental Hotels has held early-stage talks
with Starwood Hotels & Resorts over a union to
create the world’s largest hotel group.— PAGE 15
i Pressure mounts on Noble Group
Shares in Asian commodity dealer Noble Group fell
12 per cent yesterday, with the Singapore Exchange
services. The show will be pro- issuing a warning to investors, with mounting
duced by Andy Wilman, Top questions over its accounts.— PAGE 28
Gear’s long-time executive pro-
ducer who left the BBC with the Datawatch
presenters. They quit in March
after the BBC sacked Mr Clark-
son for physically and verbally Forecast GDP growth
abusing a Top Gear producer, in eastern Europe Prospects for
Oisin Tymon. Consensus of analysts’ forecasts economic growth
for GDP growth in 2015 (%) in the big eastern
The move to create a new Russia Hungary European
show will pit the trio against the Ukraine Poland
Czech Rep. Romania economies that
BBC’s relaunched Top Gear 5
are EU members
show, led by Chris Evans, while 0 have not been
boosting Amazon’s video- affected by the
streaming service in its battle -5 political problems
with Netflix. in Russia and the
-10
Mr Clarkson said yesterday: Ukraine, according
“I feel like I’ve climbed out of a Jul 2014 Date of forecast 15 Jul to Consensus
biplane and into a spaceship.” Source: Consensus Economics Economics
Lombard page 20
yield chg
2.27 -0.03
2.09 -0.01
0.66 -0.06
0.42 0.01
2.96 -0.04
-0.26 0.00
prev chg
0.11 0.01
0.05 0.00
-0.01 0.00
0.58 0.00
2 ★ FINANCIAL TIMES Friday 31 July 2015

NATIONAL

Monetary Policy Committee Severance terms

Rate setter to be grilled on personal finances Chancellor

MPs want to question Howard, a macro hedge fund whose
trading strategy is based on forecasting
Vlieghe over possible
conflict of interests
shifts in economic and monetary policy.
He is set to join the MPC on Septem-
ber 1 and will continue to receive an
FERDINANDO GIUGLIANO AND annual payment from the fund as part of
MILES JOHNSON — LONDON a long-term remuneration scheme.
Andrew Tyrie, chairman of the Treas-
A parliamentary committee is set to ury committee, said MPs will ask Mr
scrutinise whether the business interests Vlieghe about his financial interests
of the incoming member of the Bank of when he appears in front of the commit-
England’s Monetary Policy Committee tee for a hearing that is likely to take
clash with his new role, setting up a place in mid-September.
potential conflict with George Osborne, “It is essential that the MPC is, and is
whosignedofftheappointment. seen to be, independent,” Mr Tyrie said.
The chancellor designated Gertjan “[The Treasury committee] will be
Vlieghe to the nine-member body on seeking reassurance that Mr Vlieghe’s
Tuesday, while allowing him to retain a business interests do not pose a conflict
share in the future earnings of the finan- with his membership of the MPC when
cial company he worked for. he comes for an appointment hearing in
Mr Vlieghe this week left his job as the autumn”.
economist and partner at Brevan Mr Tyrie said rules over possible con-
Ai Weiwei. Diplomatic relations
flicts of interest at the bank should be
applied reasonably to ensure members
with different backgrounds are allowed
onthecommittee.
“It is also important that judgment is
exercised in the application of rules cov-
ering such possible conflicts of interests
to ensure that the MPC can have access
to the widest relevant expertise.”
While MPs will not be able to veto the
appointment, they can make recom-
mendations. In 2000, the Treasury
committee called on then chancellor
Gordon Brown to reconsider the selec-
tion of Christopher Allsopp, but Mr
Brown chose to ignore their advice.
The code of conduct for MPC mem-
bers states that “on appointment, mem-
bers will be asked to disclose all relevant
commitments and interests to the gov-
ernor and to the chancellor”.
“The chancellor will decide whether
the continuation of any commitment or
interest is incompatible with member-
ship of the committee; the governor
may offer advice in this regard.”
Brevan Howard is one of the world’s
largest hedge funds in terms of the
amount of money it manages. As with
other macro funds, its trading strategy is
based on predicting the thinking of
those responsible for interest rates.
Mr Vlieghe’s payment will depend on
several variables, but is primarily linked
to the fund’s size, as measured by assets
under management. The bank said
there was not a direct link between the
payment and the fund’s performance.
Mr Vlieghe’s stake is passive and he
will have no active role with the fund in
his new role. Because Brevan Howard is
a partnership, Mr Vlieghe’s rights are
illiquid and cannot be sold. The MPC
appointee could have renounced
these assets, but was not forced to.
“The Bank of England has a code of
conduct in place that applies to all MPC
members and this ensures that no con-
flicts of interest exist when members
join the committee. This code is applied
rigorously at all times,” the BoE said.
The Treasury said: “As is usual prac-
tice when making external appoint-
ments of this nature, potential conflicts
of interest are considered by the Treas-
ury and the Bank of England, and the
MPC code of conduct is applied rigor-
ously at all times.”
Mr Vlieghe is the first MPC member to
be appointed from a hedge fund since
Sushil Wadhwani joined the committee
from the Tudor Group in 1999.
Mr Vlieghe declined to comment on
the matter. The bank and the Treasury
declined to comment on the specific
detailsofMrVlieghe’spersonalfinances.
to introduce
public sector
pay-off cap
GEORGE PARKER — POLITICAL EDITOR
Plans to end six-figure severance pay-
ments for civil servants will be set out
today as George Osborne tries to save
about £100m a year by limiting pay-
offs.
The BBC, which has been criticised for
its severance deals for top executives,
will be outside the scope of the new law
but will be told to follow suit and limit
payouts to a maximum of £95,000.
The cap will be enshrined in legisla-
tion and will cover most big public
employers, including the civil service,
local authorities, the NHS, schools and
quangos.
Other public bodies, including the
BBC, Bank of England, Channel 4 and
some regulators, will not be covered by
the law but will be under heavy political
pressure to fall into line.

Arts world leads criticism over dissident’s visa curb
Entry for Chinese artist is
restricted to 20 days after
failure to declare ‘conviction’
JAMIL ANDERLINI — BEIJING
KIRAN STACEY, GEORGE PARKER AND
JAMES PICKFORD — LONDON
MPs, campaigners and leading arts
figures have condemned a decision by
Britain to deny a six-month business
visa to Ai Weiwei, the Chinese dissident
artist, preventing him from being in
London at the same time as President Xi
Jinping.
Salman Rushdie, the novelist, led
criticism of the government yesterday
after Mr Ai said the British embassy had
restricted his entry visa to 20 days
because he had failed to declare a
“criminal conviction”.
The decision means that the artist,
who has been abducted, detained and
interrogated by Chinese security agents
but never charged, will miss part of his
own exhibition at the Royal Academy
from September to December.
Mr Rushdie said: “I’m disappointed to
hear about Ai Weiwei’s UK visa restric-
tion and I hope this decision will swiftly
be reversed.” The Royal Academy said it
was “concerned”, while Labour politi-
cians and campaign groups urged the
Home Office to change its mind.
Mr Ai published a copy of the letter he
received from the British embassy in
Beijing yesterday, rejecting his applica-
tion for a six-month business visa.
Instead, British officials granted him a
time-limited visa expiring at the end of
September, weeks before an official visit
to the UK by Mr Xi.
The letter said the artist had been
denied the full six-month entry because
“it is a matter of public record that you
have previously received a criminal con-
viction in China, and you have not
declared this”.
The artist is known for his irreverent
political statements and ingenious
public protests. He came to prominence
in Britain after his installation of 8m
porcelain sunflower seeds in the main
gallery of London’s Tate Modern
museum.
Yvette Cooper, the shadow home sec-
retary and one of four contenders for
the leadership of the Labour party, has
Ai Weiwei will now written to Theresa May, home
miss part of his secretary, demanding an explanation.
own exhibition Jodie Ginsberg, chief executive of
at the Royal Index on Censorship, a campaigning
Academy after organisation, said: “The British govern-
his application ment has said repeatedly in recent
for a six month months that freedom of speech and
business visa expression are key British values. The
was turned Home Office needs to show this in
down deeds, not just words.”
— Goh Chai Hin/AFP/Getty Over the past few years human rights
activists and government critics have
become increasingly frustrated as David
Cameron’s government has courted
China. Having angered Beijing in 2012
by having his photograph taken meeting
the Dalai Lama, Mr Cameron has since
been assiduous in wooing Beijing.
In 2013, he indicated he had no plans
for further meetings with the Tibetan
spiritual leader, and sealed the rap-
prochement later that year by taking
Britain’s largest ever trade delegation to
China.
Last year, Mr Cameron dismayed
pro-democracy campaigners in Hong
Kong with an apparent reluctance to
criticise Beijing over its attempts to
change the region’s voting system.
George Osborne, the chancellor, is
now leading attempts to forge trading
links between the Britain and China. But
his key decision to sign up to the Asian
Infrastructure Investment Bank, seen as
a Chinese rival to the World Bank, upset
the US.
Now the government has upset the
artistic community. Tim Marlow, artis-
tic director of the Royal Academy, said
the RA was hoping for “a speedy resolu-
tion” to the matter. The Lisson Gallery
in Marylebone, which represents Mr Ai
in the UK, was more forthright. “We
trust and hope that this decision is based
on a misunderstanding and will be
quickly corrected,” it said.
For Mr Ai, the decision is a particular
disappointment after the Chinese
‘We trust authorities returned his confiscated
passport this month. Yesterday he
and hope posted a statement on his Instagram
that this account next to a picture of a toilet. It
read: “This decision is a denial of Ai
decision Weiwei’s rights as an ordinary citizen.”
will be A Home Office spokesman said: “All
applications are considered on their
quickly individual merits and in line with the
corrected’ relevant legislation. Mr Ai has been
granted a visa for the full duration of his
Lisson Gallery requested dates of travel.”
If the cap had been in force during the
last parliament it would have saved
£200m in the two years 2011-13, accord-
ing to the Treasury. In 2013, some 2,000
public sector workers received payouts
of more than £100,000.
A consultation on the cap, prefigured
in the Conservative manifesto, begins
today and the Treasury says it will not
apply to public bodies that operate inde-
pendently. But it says it expects those
bodies to “set out a commensurate cap
on exit payments at least equivalent to
the arrangements proposed” for the civil
serviceandotherpublicorganisations.
The consultation, which ends on
August 27, leaves open the possibility of
reducing the limit below £95,000.
The BBC is particularly in the line of
fire after it emerged that 12 senior staff
received pay-offs of more than
£150,000 in 2013, before a new cap was
set at that level by Tony Hall, the cur-
rent director-general. Before this was in
place, Mark Byford, a former deputy
director-general, received a settlement
of £1m when he left the corporation.
Greg Hands, Treasury chief secretary,
said: “It’s not right that highly paid pub-
lic sector workers should receive huge
taxpayer-funded payouts when they’re
made redundant.
“I’m not prepared to stand by and
allow huge pay-offs to be made at a time
when we’re having to find savings in our
public services.”
The cap will apply to all forms of com-
pensation including redundancy pay-
ments, pension top-ups, compromise
agreements and special severance pay-
ments.
The question of generous public sec-
tor pay-offs has been raised by MPs on
the cross-party public accounts com-
mittee, which was particularly critical of
compromise agreements and special
severance payments.
“The lack of transparency, oversight
and proper accountability over their use
has allowed taxpayers’ money to be
used to reward failure,” the committee
said in a report last year.
The government will also announce
today it is considering further reforms
to the calculation of compensation, to
ensure redundancy payments offer
value for money for taxpayers.
The squeeze on severance pay is part
of the government spending round,
which is due to conclude with the
Autumn Statement expected in Novem-
ber. “Unprotected” departments have
been asked to draw up plans for scenar-
ios with a 25 per cent or 40 per cent cut.

Referendum
A private bank unlike
any other. Farage rules out Ukip taking charge of official campaign to quit EU
KIRAN STACEY body who’s never been in politics before. Arron Banks, an insurance tycoon The Electoral Commission must
POLITICAL CORRESPONDENT
It may be somebody who the British and party donor, has set up his own No choose one group from both the Yes and
Nigel Farage has said the UK Independ- public actually knows. campaign — The Know — and has No camps as official leaders.
ence party will not lead the official “I think politicians overestimate their announced a £100,000 prize for the The two groups will be entitled to
campaign for Britain to leave the EU, ‘carry’ and their spread among the Brit- best essay on how Britain can thrive broadcast speeches, send free leaflets to
30 global locations • www.efginternational.com
suggesting it could be led by a business ish population. They are not well- after it leaves the EU. voters, organise public meeting rooms
or sports figure instead. known, they are not very well-liked, so “The same tired old Westminster and receive a grant of up to £600,000.
EFGslogan - 112x50mm - Generic ad - Q - Publication : Financial Times advert 2014 (20.08.2014) let’s wait and see. Let’s hope somebody bubble cannot reach the nurse in Man- They can also spend up to £5m on cam-
FINANCIAL TIMES newspaper in any manner is not permitted without The Ukip leader gave a speech yesterday emerges from perhaps business or chester or factory worker in Glasgow, or paigning.
Number One Southwark Bridge, London SE1 9HL the publisher’s prior consent.
‘Financial Times’ and ‘FT’ are registered trade marks in which he promised to lead a “major sport.” have the appeal needed to get across the The official leaders are also likely to
Published by: The Financial Times Limited, of The Financial Times Limited. ground campaign” against EU member- David Cameron’s promise of an EU facts to the public,” Mr Banks said. have a debate during the campaign.
Number One Southwark Bridge, The Financial Times adheres to a self-regulation ship during the first week of September. referendum before the end of 2017 has “Nigel should lead the Ukip campaign Mr Farage added he was not expecting
London SE1 9 HL, United Kingdom. regime under the FT Editorial Code of Practice:
Tel: 020 7873 3000; Fax: 020 7407 5700 www.ft.com/editorialcode
But he added that his party would not triggered arguments among euroscep- and his strategy to meet the people in many ministers to resign from the gov-
Editor: Lionel Barber apply to be the official lead group for the tics over the past few months over who town hall meetings is perfect.” ernment to campaign openly for a No
Reprints No campaign, which is already divided should lead the campaign to leave and vote. “Very few people give up ministe-
Subscriptions and Customer service: Are available of any FT article with your company about how to organise ahead of the vote. how. rial positions on a point of principle,” he
Tel 0800 028 1407; subscriptions@ft.com; logo or contact details inserted if required (minimum
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One-off copyright licences for reproduction of FT anybody else, Ukip is going to take the has given his backing to a cross-party the Conservative mayor of London and
Advertising: articles are also available. lead in this country and launch in Sep- group of MPs, including Owen Paterson, MP for Uxbridge, to join his campaign.
Tel: 020 7873 4000; ukads@ft.com For both services phone 020 7873 4816, or
Letters to the editor: alternatively, email syndication@ft.com
tember a major ground campaign.” a Conservative former cabinet minister, Mr Johnson is seen as one of the most
Fax: 020 7873 5938; letters.editor@ft.com But he added: “This is not a dramatic and Kate Hoey, a Labour MP. likely candidates to succeed Mr Cam-
Executive appointments: FT Cityline bid by me or others in this room to think Mr Wheeler and others in the party eron as prime minister and has fre-
Tel: 020 7873 4909; www.exec-appointments.com For real time share prices call 0905 817 1690 or go to
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Ukip will get the official designation for believe Mr Farage does not have enough quently criticised the EU. But he has
Printed by: cost 75p/min. the No campaign. We won’t, and we appeal outside Ukip’s core vote to win never said explicitly he would campaign
St Clements Press (1988) Ltd, London, Newsprinters won’t apply.” the referendum. for Britain to leave.
(Knowsley) Limited, Merseyside, Newsprinters
(Eurocentral) Glasgow, and Smurfit Kappa News
Newspapers support recycling
The recycled paper content of UK newspapers in
Asked whether he would want to be Patrick O’Flynn stepped down this £100,000 £5m Mr Farage said: “The one thing about
Press Ld, Kells, Ireland 2013 was 83.5% the figurehead for the No campaign, he year as the party’s economic spokesman Prize for the best Amount the Yes Boris . . . is that the public know who he
said: “It will be up to whoever gets the after warning about a libertarian fringe essay on how UK and No camps is. I would say: Come on Boris, see the
©Copyright The Financial Times Limited 2015. All designation for the No campaign to pick in Ukip that was pulling Mr Farage away can thrive after it can spend on light. Come on in, the water’s lovely.”
rights reserved. Reproduction of the contents of this leaves the EU campaigning
the person . . . It may even be some- from the centre ground. Comment page 11
Friday 31 July 2015
Tories taken to task as Siemens weighs
into dispute over green energy U-turn
National Trust and Greenpeace join eight charities against ‘short-sighted’ policy reversals
PILITA CLARK — ENVIRONMENT
CORRESPONDENT
One of the world’s biggest industrial
conglomerates has weighed into a grow-
ing row over the number of green energy
measures the Conservative government
has watered down or scrapped since it
came to office in May.
Germany’s Siemens, a top global wind
turbine maker investing £160m in a
Hull factory, has urged ministers to
dispel industry concerns about the
changes, warning “doubt and uncer-
tainty discourages investment deci-
sions”.
“We hope to see more clarity in some
key policy areas soon,” Matthew Knight,
head of energy strategy for Siemens in
the UK, said. “We need to take energy
policy out of party politics so that
political risk does not push up the cost of
every type of generation.”
The company’s comments come as
the National Trust takes the unusual
step of joining Greenpeace and eight
other charities to write to the prime
minister about what some signatories
said were “shocking” and “short-
sighted” policy reversals.
These include decisions to allow shale
gas and oil drilling near sensitive areas;
to end zero-carbon homes policies and
funding for the Green Deal home
energy-saving programme; and to slash
solar and wind farm subsidies. The 10
‘We hope to see clarity
soon. We need energy
policy out of party politics’
Matthew Knight, Siemens
charities pointed out that only one of
these changes was mentioned in the
Conservatives’ largely pro-green mani-
festo for the May election: ending some
onshorewindsubsidies a year early.
“We have, as yet, seen no positive new
measures introduced to restore the
health of our environment or grow the
low-carbon economy,” they said.
For business groups such as Siemens,
the most disquieting changes have been
those set out by Amber Rudd, the new
energy secretary. As well as announcing
plans to reduce support for onshore
wind, solar and biomass generators, Ms
Rudd has warned of much bigger
changes to come, including the total
amount of spending the government
will allow for green subsidies that are
largely paid for through consumer bills.
A cap imposed under the previous
coalition government, known as the
levy control framework, allows this
spending to reach £7.6bn a year by
2020-21. It has helped to provide a total
of £40bn in support for what Ms Rudd
has called “a clean energy boom”.
Fears that this cap would be exceeded
by as much as £1.5bn by 2020, pushing
up household energy bills, led her to cut
renewable subsidies that she said
amounted to a “blank cheque” from
consumers to industry.
Ms Rudd has said a new spending cap
will be announced for the years after
England seek knockout blow in thrilling punch-up
Matthew
Engel
Remember five-day cricket? An out-
moded form of sport which no one has
time for these days? It is indeed going
out of style, though not quite in the way
anyone predicted.
After an astonishing day’s cricket in Bir-
mingham, Australia came close to losing
to England inside two days, the quickest
Ashes Test match since 1921. In the end,
their late-order batsmen survived to
reach 168 for seven, and fight another
morning at least, but England should
finish them off soon enough.
With only three wickets left, the
Aussies lead by just 23 runs.
However, this contest has been
defying expectations at every turn. And
England will face the day — and perhaps
the rest of the series — without Jimmy
Anderson. Having dominated day one,
he winced and trudged off in mid-over,
feeling his side. On his birthday, too!
Speculation swirled that he might miss
the rest of the summer.
And expectation has been a fragile
concept in this series. Ashes series often
take off in strange directions, but they
normally acquire an unstoppable
momentum at an early stage, with one
side rampant and the other on the floor
Winds of change The programmes facing reform
3 Killed Green Deal home
energy saving programme
hailed by coalition ministers
3 Axed Guarantees that wood chip
power generators receive the same
level of subsidy for the lifetime of their
projects.
3 Privatised Stake to be sold off in
Green Investment Bank.
3 Under review Rules guaranteeing
— rather like an election night. This one
is more like a pub brawl, with blows
raining in all directions. England,
surprise winners in Cardiff three weeks
ago, were then massacred at Lord’s.
Now, Jimmyless or not, they are 1-to-
100 to go 2-1 up in the series.
Normally, Edgbaston is the cheeriest,
beeriest ground on the English circuit —
the crowd getting noisier as the day
wears on. This time, everyone sat rapt as
the teams traded punches, and by late
afternoon on a long day (an hour was
added to make up for rain on Wednes-
day), they were, like the players, com-
pletely knackered.
England, having dismissed Australia
for 136, were 133 for three overnight and
fancying a huge lead. But then their
nemesis woke up: Mitch Johnson,
Australia’s destroyer-in-chief, took two
wickets with identical and unplayable
bouncers in three balls. England
regrouped, but fallibly, and did not
Steve Finn celebrates taking a wicket
yesterday. He ended the day with five
★ FINANCIAL TIMES
NATIONAL
that renewable companies can receive
subsidy payments once they are
accredited but before they start
generating electricity.
Subsidies for smaller solar farms a year
early.
The Feed in Tariff scheme subsidising
regain control until a joyful eighth-
wicket stand of 87 between Moeen Ali
and Stuart Broad.
The lead was 145, which might have
been vulnerable to a concerted Austral-
ian fightback. It never came: five of the
top six went for single figures, four of
them to the tall fast bowler Steve Finn,
back after two years remodelling his
action, and suddenly looking a world-
beater. His victims included Australia’s
captain, Michael Clarke, who is now
deep in a double crisis: the Ashes in
jeopardy; his own form in tatters.
The belligerent opener David Warner
carried the innings with 77, until he
over-reached himself. Throughout this
match most batsmen, on both sides,
have struggled to come to terms with
the pitch. The normal careful and loving
preparation of a Test wicket was ruined
by foul weather.
Yet the effect has been to produce an
unconventional and unpredictable
surface that has provided thrilling
cricket. The difference has been that
Australia’s bowlers, who thrived at
Lord’s, have grasped its peculiarities far
less effectively than England’s. Even
Johnson, apart from his post-breakfast
burst, has struggled.
The nation, meanwhile, has been
galvanised. Across Britain, computer
screens were switched surreptitiously to
cricket websites. BBC Radio 4 reported
listening figures that Test cricket has not
had since the golden year of 2005. Don’t
try to phone an English cricket fan after
11 o’clock this morning.
3 Slashed Existing onshore
wind subsidies to end a year
early
3 Ditched Requirement for
builders to make new homes
zero carbon from 2016
rooftop solar and other small renewable
power installations.
Onshore wind farms’ access to new
contracts guaranteeing certain prices.
3 Seriously in doubt The size of the
spending cap for low-carbon energy
projects beyond 2020.
Photos: Charlie Bibby; Newscast; Matt Cardy/Getty Images
Anti-Semitism
Jewish leaders raise fears on social media abuse
ROBERT COOKSON AND SARAH NEVILLE
Jewish community leaders have called
for legal powers to reveal the identities
of those responsible for anti-Semitic
activity on social media as figures
showed a big rise in reported attacks.
The number of anti-Semitic incidents in
Britain rose by more than half in the
first six months of the year, according to
a charity that tracks malicious acts
against Jews.
CST recorded 473 incidents during
the first half of 2015 — a 53 per cent rise
on the 309 in the same period of 2014.
The 2014 figure was itself an increase of
38 per cent on the 223 anti-Semitic inci-
dents recorded during the first six
months of 2013.
The charity said the primary explana-
tion for the rise was a greater willingness
by people to report anti-Semitism to
CST or the police. The increased report-
ing came mainly in January, February
and March, when “British Jews felt espe-
cially concerned by anti-Semitism, see-
ing awful terrorist attacks in Paris and
Copenhagen; and experiencing sus-
tained . . . media coverage of the subject
of anti-Semitism”.
The most common single type of inci-
dent was random, spontaneous, verbal
anti-Semitic abuse — with sites such as
Twitter also a big source.
The Board of Deputies of British Jews
highlighted racism on social media as a
key area of concern. Jonathan Arkush,
2020, but has not said when that decision
will be made or what level of spending
willbeallowedoverwhattimeperiod.
She has also surprised industry by
saying she does not expect that onshore
wind generators, the cheapest form of
renewable energy, will be given access to
newer subsidies designed to help lower
household energy bills.
This has led to concern that Britain
may not meet legally binding EU targets
to make 15 per cent of its energy from
renewable sources by 2020.
An energy department spokesman
said provisional figures showed the
country was already producing 7 per
cent of its energy from renewables, up
from just 1.4 per cent in 2005 and that
Britain was making progress towards its
2020 goal.
But there is considerable doubt about
whether the goal can be achieved,
especially given the impact on investor
sentiment prompted by the recent
round of subsidy cuts.
In order to meet the 2020 EU target,
the energy department has previously
calculated that renewable sources will
have to supply about 30 per cent of
electricity, 12 per cent of heating
demand and 10 per cent of transport
energy.
Renewables already account for 22
per cent of electricity, up from 7 per cent
in 2010, and energy department offi-
‘The question is, are they
throwing the baby out
with the bathwater?’
Professor Jim Skea
cials believe that share will rise to more
than 30 per cent by 2020.
But renewable sources of heating,
such as biomass boilers, only account
for about 2 per cent of demand and
biofuels, the main type of renewable
transport energy, only have a 3.2 per
cent share, according to the govern-
ment’s statutory climate advisers, the
Committee on Climate Change.
In an echo of the concerns expressed
by the 10 charities, the committee’s
chief economist, Adrian Gault, said his
main concern about the recent spate of
changes was an absence of information
about replacement policies.
“They have said they will extend the
levy control framework into the 2020s,
but not when, or what that level will be,”
he said. “They have also effectively killed
the Green Deal but there is no announce-
mentaboutwhatwillreplaceit.”
The European Commission warned
last month that Britain was one of a
group of countries that may “need to
assess whether their policies and tools
are sufficient and effective in meeting
their renewable energy objectives”.
Some energy experts say this concern
is well-founded. “I have a bit of
sympathy with some of the things the
government has decided to do but the
question is, are they throwing the baby
out with the bathwater?” said Professor
Jim Skea of Imperial College London.
president of the board, called for “legal
powers requiring the disclosure of the
identities of those responsible so that
appropriate action may be taken”.
Moshe Kantor, president of the Euro-
pean Jewish Congress, said it was very
supportive of the government’s actions
on Islamic radicalism, and called for the
categorisation of anti-Semitism as “a
specific crime”.
Jewish leaders want
powers to expose
the identities of
people purveying
anti-Semitic material
on social media
CST classifies an anti-Semitic incident
as any malicious act aimed at Jewish
people, organisations or property,
where there is evidence that the victims
were targeted because they were Jewish.
During the first half of 2015, 44 vio-
lent anti-Semitic assaults were reported
— two of which were classified as
“extreme violence”, meaning they
involved grievous bodily harm or a
threat to life.
There were 35 incidents of damage to
Jewish property, 36 direct anti-Semitic
threats and five cases of mass-mailed
anti-Semitic leaflets or emails.
Underlining how geographically con-
centrated most of the attacks were, CST
found that 359, or just over three-quar-
ters, were recorded in the main Jewish
3
Online survey
Pension
savers urged
to report high
exit charges
CLAER BARRETT
PERSONAL FINANCE EDITOR
Savers are being asked to name pen-
sion providers who charge high fees for
transferring or cashing in savings early,
as part of a government consultation
on whether people are able to take
advantage of pension reforms that
came into force in April.
The reforms gave people aged 55 and
over with defined contribution pensions
the freedom to cash in their savings. An
online survey went live yesterday, ask-
ing consumers to describe their experi-
ences of accessing their cash, to provide
details about fees and charges and of
any justifications for these from pen-
sions providers.
About half of the 21 survey questions
require a detailed response. One asks:
“Has the existence of an exit charge
impacted on any decisions you have
madetoaccessthepensionflexibilities?”
Consumers are also asked to provide
“as much information as possible” if
they have been charged an exit penalty
for cashing in a pension early, including
how it was calculated, and the reasons
their provider gave for imposing it.
The survey, which is open to those
who have accessed pensions cash and
those who are considering it, will run in
tandem with a 12-week industry consul-
tation promised by Chancellor George
Osborne last month. This will consider
whether exit charges should be capped,
or whether a voluntary industry-led
approach would work.
The industry has played down the
need for a cap on early exit fees, stating
these generally apply to older pension
schemes. “No pensions sold on the mar-
ket today have early exit fees and nearly
nine out of 10 making use of the pension
freedoms will not face an early exit fee,”
said Ben Gaukrodger, savings policy
manager at the Association of British
Insurers.
But Danny Cox, chartered financial
planner at Hargreaves Lansdown, said it
was not a small problem as older poli-
cies were “riddled with exit penalties”.
A voluntary cap was highly unlikely to
work, he said. “Given that the worst of
the exit penalty offenders are from pro-
viders who no longer seek new custom-
ers, there are no market forces to incen-
tivise them to change.”
Since the reforms came in, pension
savers have cashed in more than £1.8bn.
Consumer groups have said that even if
a cap were introduced, it would come
too late for many. “Our research shows
that over a quarter of over 55s with a
pension are planning to make, or are in
the process of making a withdrawal,”
said Hannah Maundrell, editor-in-chief
of the advice website Money.co.uk.
“My concern is by the time the
changes are implemented, many will
already be hugely out of pocket.”
The Treasury said the consultation
would explore options to address exit
charges, and Ros Altmann, pensions
minister, has instructed the Financial
Conduct Authority and the Pensions
Regulator to gather information on fees
and charges.
centres of Greater London and Greater
Manchester. CST also records the
number of anti-Semitic incidents each
year in which there is evidence of politi-
cal motivation, or where “political dis-
course” is used by the perpetrator.
It draws a distinction between the two
categories, citing “a black or south Asian
offender giving a Nazi salute to a Jewish
victim”. While this could be described as
employing “far-right discourse, [it] is
unlikely to be motivated by support for
neo-Nazi politics”, says CST. Of the 473
anti-Semitic incidents reported to CST
during the first half of 2015, offenders
used some form of political discourse in
170 cases, or 36 per cent of the total.
Meanwhile, 107, or 23 per cent, showed
evidence of political motivation.
The Anti-Defamation League pointed
to findings that more than half of perpe-
trators were described as “white” and
only 6 per cent as “Arab or north Afri-
can”, while in less than 7 per cent of inci-
dents, reference was made to Israel,
Zionism or the Middle East.
Michael Salberg, the league’s director
of international affairs, said the num-
bers “should put to rest the commonly
held misconception that anti-Semitic
incidents are primarily driven by reac-
tions to the Middle East conflict”.
Mr Salberg added: “Yes, fighting
between Israelis and Palestinians can
trigger an upsurge, but rightwing
extremist anti-Semitism remains a seri-
ous concern in the UK and elsewhere.”
4 ★★★ FINANCIAL TIMES Friday 31 July 2015

INTERNATIONAL

Greece Eurozone

Tsipras wins battle with Syriza’s far left IMF raises

September congress to
examine bailout as talks
reveal party divisions
KERIN HOPE — ATHENS
Alexis Tsipras won a battle early this
morning with a mutinous far-left fac-
tion in his governing Syriza party after a
day of tense discussions that laid bare
deepening divisions within the party
over a new €86bn bailout being negoti-
ated with Greece’s creditors.
The prime minister’s proposal to hold
an extraordinary party congress in
September to examine the bailout once
it has been completed was approved by
Syriza’s 200-strong central committee
last night without resort to a roll-call
vote. Mr Tsipras’s earlier suggestion of a
party referendum on the bailout to be
held immediately was dropped after
objections by Panagiotis Lafazanis, the
premier’s sharpest critic and leader of
the rebellious Left Platform, the party’s
internal opposition.
“How many referenda are we going to
hold? We’ve already done one and we
won with 62 per cent of the vote,” said
Mr Lafazanis, a former communist who
was sacked as energy minister in a
cabinet reshuffle this month.
He was referring to the No vote in a
national referendum on July 5 on a bail-
out plan the government had already
rejected, a result that boosted Mr
Tsipras’s standing at home even though
he accepted a new bailout on harsher
terms a week later.
The premier appeared to have won a
breathing space but last night’s highly
France. Tunnel chaos
charged debate signalled that Left Plat-
form, which supports an end to auster-
ity and a Grexit from the euro, would
continue to oppose a fresh bailout.
Earlier yesterday, Mr Tsipras had
addressed the central committee pro-
posing the yes-or-no vote on the bailout
for Sunday. “Anyone who wants a differ-
ent government or a different premier
should say so,” said Mr Tsipras, making
clear he viewed a vote to be a judgment
on his tenure as prime minister. “Those
who believe this is the worst memoran-
dum [bailout] of all should say so now.”
Greek radio and television stations
interrupted their regular programmes
to broadcast Mr Tsipras’s speech live
from the party gathering at an Athens
cinema — a sign of how the meeting was
seen as critical to the country’s stability.
Since agreeing to the bailout this
month after a bruising meeting with
fellow EU leaders, Mr Tsipras has had to
contend with rising discontent from
Syriza’s left flank. Left Platform has
staunchly opposed the reforms tied to
the bailout, fuelling speculation it might
break from the party and leave Mr
Tsipras without a governing majority.
Mr Lafazanis has openly argued that
Greece should have brought back the
drachma. Earlier this week, he told
supporters that “an exit from the euro
. . . in spite of all the dark propaganda,
would in no way be a disaster”.
The threat from Mr Lafazanis is com-
plicating Mr Tsipras’s already difficult
task of finalising a new rescue pro-
gramme that is deeply unpopular in
Greece. Making matters more challeng-
ing, he is also facing demands from
creditors for even more economic
reforms before they will release the first
tranche of aid payments.
If Athens and its bailout creditors can-
not reach a deal by August 20, when a
€3.2bn bond held by the European Cen-
tral Bank becomes due, the EU will have
to provide Greece with a second bridge
loan. But that would come with its own
conditions, and might force Mr Tsipras
to propose another round of reforms to
Greece’s parliament within weeks.
“Leaving the euro without any possi-
bility of economic support, and without
foreign exchange reserves, would mean
a huge devaluation, harsh austerity and
further recourse to the International
Monetary Fund for support,” he said.
“Anyone who doesn’t accept this is
wilfully blind or is hiding the truth.”
Additional reporting by Peter Spiegel in
Brussels
doubts over
role in next
Athens rescue
PETER SPIEGEL — BRUSSELS
The International Monetary Fund’s
board has been told Athens’ high debt
levels and poor record of implement-
ing reforms disqualify Greece from a
third IMF bailout of the country, rais-
ing new questions over whether the
institution will join the EU’s latest
financial rescue.
The determination, presented by IMF
staff at a two-hour board meeting on
Wednesday, means that while IMF staff
will participate in bailout negotiations
currently under way in Athens, the fund
will not decide whether to agree a new
programme for months — potentially
into next year.
That delay could have significant
repercussions, particularly in Germany,
where officials have long said it would

Calais be impossible to win Bundestag

approval for the new €86bn bailout
without the IMF on board.

migrants
According to a four-page “strictly con-
fidential” summary of Wednesday’s
board meeting obtained by the Finan-
cial Times, IMF negotiators will “partic-

hold on to ipate in policy discussions” to ensure

the eurozone’s new bailout “is consist-
ent with what the fund has in mind”.

dream of
But they “cannot reach staff-level
agreement at this stage”. The fund will
only decide whether to participate dur-
ing a “stage two” after Greece has “agreed

England Berlin and other creditor

Fears rise that people will take
ever greater risks despite
extra security measures
ADAM THOMSON — CALAIS
Night has fallen over Calais and
Muhammed’s long wait is finally over:
he warms his hands over a campfire one
last time, wraps a blanket tight around
his head for warmth and walks towards
a barbed wire fence separating him
from railway tracks leading to England.
“In fifth grade, we learnt about
Africa,” says the 31-year-old. “Then we
learnt about the world, about England
and about democracy. England is a good
place.”
Migrants such as Muhammad have
been passing through the northern
French port for years, viewing it as the
penultimate stop of a journey that
typically spans thousands of miles,
often in perilous conditions.
But this week Britain has resembled a
fortress desperately trying to keep out
thousands of migrants from Africa, the
Middle East and beyond striving to
overwhelm the defences of the Channel
tunnel by sheer force of numbers. On
Monday night, 2,000 people stormed
the tunnel site seeking to jump on to
trains bound for the UK. Another 1,500
tried again the night after; one man was
killed by a lorry as he crossed a road.
Britain and France have pledged addi-
tional security measures and police to
protect the tunnel. But Christian
Salomé of L’Auberge des Migrants,
which provides basic aid to the migrants
in Calais, says it will only push them to
take even greater risks. “This is not
security,” he says. “It just makes it more
dangerous for them to cross.”
French police In the meantime, the cost to business
face migrants at is rising: the disruption in Calais is
the Eurotunnel estimated at £250m per day in lost trade
site in Coquelles, for UK businesses cut off from a vital
near Calais, on transport artery.
Wednesday Like Muhammed, who came from
night. One man Ethiopia, most of the migrants in Calais
was killed by a are on a one-way ticket, fleeing from
truck this week war and violence back home. Kamel, a
as he crossed a robust 28-year-old wearing a baseball
road — Philippe Huguen cap and a “Harvard”-stamped T-shirt,
AFP/Getty Images
left his native Syria six weeks ago after
his mother was killed in fighting and his
home was destroyed.
He says he spent a total of €8,500 to
get to Calais, paying different people on
a journey through Turkey and Greece
that included a hazardous two-day trek
through the Serbian mountains before
reaching Austria and Germany.
But most migrants from Africa travel
through Sudan and on to Libya before
paying more than $1,000 to be
crammed into a small boat that
transports dozens of people at a time to
Italian shores.
Struggling to feed a small fire in a
wooded area near the tunnel entrance,
Kamel says that his 15 failed attempts so
far to reach the UK have done nothing to
deter him. “I’ve come too far and spent
too much to go back now,” he says. “Any-
way, there is nothing to go back to.”
His obsession with England is typical
of the vast majority of migrants in
Calais. They say that seeking asylum is
relatively easy and quick in Britain
compared with France or other EU
countries.
They also say that it is easier to find
informal work — in part, because the
economy is growing but also because
there is no ID card requirement.
Besides, most speak at least some
English, which makes the UK their
natural destination.
Not everyone leaves, though. For the
past three months, Mohammad Ali, a
65-year-old Afghan former school
teacher, has holed up in the notorious
“jungle”, the 18 hectares of Calais scrub
land where about 2,000 migrants now
sleep in makeshift shelters.
Fleeing from fighting in Afghanistan,
where he left his wife and eight children,
Mr Ali had his gaze fixed on Dover. But
he now thinks it may be too dangerous
and is considering applying for asylum
in France instead.
“I don’t like the risks you have to
take to get across,” he says. “I am not
going to commit suicide for this dream.”
There are increasing signs of perma-
nence in Calais’s jungle, which is carved
into national groups — Sudanese, Ethio-
pians, Eritreans and Afghans — like a
miniature map of global human con-
flict. On one side, Eritreans have built a
church — complete with a cross-topped
spire — from wood and polythene.
Afghans such as Mr Ali pray five times
a day in a mosque covered in green plas-
tic sheeting. Inside its dark interior, a
small group of migrants lie asleep on
carpets while another stacks copies of
the Koran in the corner.
For the great majority, however, stay-
ing in Calais seems about as desirable as
returning home. Mahammed, a 19-
year-old from Sudan, says that it has
taken him a year to get this far. His 10
failed attempts at crossing have ended
in beatings by the police, being pepper
sprayed and dumped miles from Calais,
he says.
‘English But none of that has quelled his drive
is my to get to England, where he says he
wants to finish school — a promise he
favourite made to his subsistence-farmer parents
language. back home. “English is my favourite
language,” says Mahammad. “I am
I am never never giving up.”
giving up’ Philip Stephens page 11
governments have so
far strongly resisted
forgiving Greece’s debts
on a comprehensive set of reforms” and,
crucially, after eurozone bailout lenders
have“agreedondebtrelief”.
That condition could prove a sticking
point since Berlin and other creditor
governments have so far strongly
resisted any suggestion of forgiving
Greece’s debts.
According to the summary, Ger-
many’s representative to the IMF board
said Berlin “would have preferred the
fund . . . move in parallel” with the
eurozone bailout talks. Instead, it now
faces the prospect of trying to move an
€86bn bailout through a sceptical Bun-
destag in a matter of weeks without the
IMF’s imprimatur.
The IMF’s assessment adds another
source of complexity just as Athens and
its bailout monitors begin discussions in
earnest in an attempt to conclude a deal
before a tight August 20 deadline. While
the creditors harbour misgivings, Alexis
Tsipras, Greece’s prime minister, is also
facing a mutiny from leftwing members
of his Syriza party unhappy with the
conditions attached to the bailout.
The IMF decided last week that its
existing bailout programme, which was
due to run until March, needed to be
scrapped because it could no longer
achieve its goal of helping Greece recover
to the point where it could return to pri-
vate debt markets. The IMF then forced
Athens to request a new IMF pro-
gramme, which requires board approval,
necessitatingWednesday’smeeting.
Some Greek officials suspect the IMF
and Wolfgang Schäuble, the hardline
German finance minister, are deter-
mined to scupper a Greek rescue,
despite this month’s agreement to move
forward with a third bailout.

Public accountability

Inquiry into banking crisis struggles to heal Ireland’s wounds

VINCENT BOLAND — DUBLIN
The Galway races, Ireland’s leading
horseracing festival and a highlight of
the social calendar, got under way this
week. But the wealthy elite who made
the event a prize networking opportu-
nity during the Celtic Tiger boom were
notable by their absence.
A few years ago, there were so many
choppers ferrying people to the event
that the sky over Galway resembled
“the helicopter attack scene from Apoc-
alypse Now”, as the Irish Times column-
ist Frank McNally put it. This week, Ire-
land’s rich and influential hardly turned
up at all.
Instead, the country’s bankers, politi-
cians and property developers have
found themselves for the past few
months in the less glamorous surround-
ings of a windowless meeting room in
the basement of Dublin’s Leinster House
— the Irish parliament building, where a
marathon inquiry is being held into Ire-
land’s banking collapse.
The inquiry, which began formal
hearings earlier this year, was meant to
be a forensic investigation into one of
the biggest financial crises of all time:
how and why Irish banks crashed
between 2008 and 2010. That disaster
cost Irish taxpayers €64bn in immedi-
ate recapitalisations of the banking sec-
tor. It forced Ireland to seek a €67bn
bailout in 2010, which came with its own
costs in the form of years of bruising
austerity.
But getting to the truth will not be
easy, as John Paul Phelan, a member of
the committee of MPs conducting the
inquiry, admits. “A lot of people have
turned up, said sorry, then produced 25
pages on why it wasn’t their fault,” he
says. Mr Phelan believes the inquiry can
be a useful exercise in public accounta-
bility in a country not noted for it: “That
is a first in terms of Irish public policy.”
Yet doubts are being raised about
whether the inquiry can really provide a
cathartic account of the Irish banking
crisis, which remains an open wound.
A distracting argument this week
about whether to accept testimony by
video link from a key witness, David
Drumm, the US-based former chief
executive of Anglo Irish Bank, the insti-
tution at the heart of the crisis, has
exposed the legal straitjacket in which
the committee works.
Recent appearances by leading politi-
cians — especially Enda Kenny, the taoi-
seach (prime minister) — have led to
accusations that the inquiry has
descended into political point-scoring.
As the Irish Independent put it, the
inquiry “is at risk of becoming a source
of public ridicule”.
Perhaps the most damning criticism
is that the inquiry has not told the public
anything they did not know already.
Shane Ross, an independent member of
the Irish parliament and critic of the
Irish response to the banking collapse,
Final straight: fewer helicopters
were seen at Galway races this year
says politics may have trumped any
more considered conclusions, especially
with a general election barely six
months away.
“It has become a vulgar political
scrap, and we have learnt very little,” Mr
Ross says.
Yet there is another reading of the
inquiry. If nothing else, it is proving a
useful exercise in putting faces to
names. Some of the property develop-
ers, civil servants and regulators who
have testified had never appeared in
such a public forum before, never mind
answered probing questions about their
participation in decisions, such as the
ill-fated blanket guarantee for bank
creditors, that arguably made the crisis
worse than it might have been.
The picture emerging is complex. The
longest period of growth Ireland had
experienced since independence nearly
a century ago was brought to an abrupt
end by a combination of factors, involv-
ing state agencies, government minis-
tries, bankers, and trade unions, rather
than in a single incident or moment.
That may not be the resolution Irish tax-
payers have been seeking, but it could
be as close to the truth as they will get.
Friday 31 July 2015 ★ FINANCIAL TIMES 5
6 ★
GDP figures
US economy speeds up in second quarter
Steady recovery as rise of
2.3% comes after stronger
start to year than expected
SAM FLEMING — WASHINGTON
The US economy accelerated in the sec-
ond quarter after a stronger start to the
year than previously estimated, accord-
ing to official figures that point to a
steady if unspectacular recovery.
Gross domestic product rose by an
annualised 2.3 per cent in the quarter to
June, the Bureau of Economic Analysis
said yesterday, marginally shy of Wall
Street forecasts of 2.5 per cent growth.
A previously estimated 0.2 per cent
fall in first-quarter GDP was replaced by
an estimate of 0.6 per cent growth, in
revisions that suggest a smaller impact
from bad weatherandaport strike.
China’s cheerleading fails to convince
As Beijing’s rhetoric grows
more strident, investors are
less inclined to believe it
TOM MITCHELL — BEIJING
China’s stock market regulator began its
most recent press briefing with a telling
instruction for the mostly local journal-
ists in attendance. “We have a require-
ment concerning speculative reports,”
said the China Securities Regulatory
Commission. “They must first be con-
firmed by the CSRC in order to prevent
the spread of false information and mar-
ket disturbance.”
The warning was a reminder that as a
“national team” comprised of largely
state-owned entities struggles to shore
up China’s stock market, the govern-
ment is orchestrating an equally impor-
tant cheerleading campaign involving a
broad array of state media outlets.
Illustrating just how delicate investor
sentiment remains despite the govern-
ment’s all-out propaganda war, the
Shanghai Composite Index experienced
the second-largest points fall in its 25-
year history on the first trading day
after the CSRC’s remarks. The 8.5 per
cent fall on July 27 left the SCI just 200
points above 3,500 — the level at which
the government’s rescue effort began in
earnest on July 8.
A move below the intervention point
would be embarrassing for the national
team led by China Securities Finance,
the CSRC vehicle fronting a rescue effort
estimated to be worth at least Rmb2.2tn
($350bn). One of the team’s key players,
the Securities Association of China rep-
resenting more than 100 state-control-
led brokers, has pledged not to sell
shares until the SCI has recovered to at
least 4,500 points.
“Market confidence is extremely frag-
ile,” says Chen Long, China economist at
Gavekal Dragonomics in Beijing. “The
government will continue buying but in
the long run they cannot really change
the trajectory.”
Yesterday morning, the SCI fell below
3,760 before closing at 3,787 at the mid-
day break.
Reflecting government concern that
the SCI is more likely to fall through the
3,500-point floor than soar past the
securities association’s 4,500 target, this
week the CSRC has adopted language
reminiscent of Maoist campaigns
against “capitalist roaders” and other
“bad elements”.
Central bank meeting
Russian business on tenterhooks over interest rate decision
COURTNEY WEAVER — MOSCOW
Izvestiya, the Kremlin-friendly Rus-
sian daily, is known primarily for its
coverage of politics and the military.
Yet this week, it splashed with a front-
page story it knew would really capti-
vate its 230,000 Russian readers: the
future of the benchmark interest rate.
Once a topic of interest primarily for
Moscow bankers and economists, the
future of the rate has become a national
sport after a year of wild currency fluc-
tuations, an emergency rate rise and
worsening forecasts for growth.
In recent months, the central bank
and Russian business have been
engaged in a fairly public tug of war over
monetary policy. The central bank has
made clear that lowering inflation and a
relatively stable currency are its main
priorities, while the latter fears higher
rates are stymieing economic growth.
With the rouble in the midst of another
plummeting spiral — it has lost 15 per
However, revisions farther back sug-
gested the US has had an even more
sluggish recovery sincethecrash.
The US Federal Reserve has signalled
that it remains on track to raise interest
rates from near-zero levels since 2008,
in part because of “moderately” expand-
ing economic activity.
The statement left the door open to a
rise at its next meeting in September
amid predictions of continued improve-
ment in the jobs market and rising GDP.
The BEA yesterday said the accelera-
tion in the second quarter of 2015 was
driven by firmer household spending,
coupled with an upturn in exports, and
higher public outlays. Personal spend-
ing increased 2.9 per cent in the second
quarter, a sharp acceleration from the
first quarter, when it gained 1.8 per cent.
Consumers’ willingness to spend
more will be a key factor in the Fed’s
Stock market upheaval. Propaganda war
Regulator inquiry
Aerospace group probed
over share transactions
China’s securities regulator is
investigating allegedly illegal share
sales at the country’s biggest state-
owned aerospace company, which is led
by a man who blames China’s stock
market woes on “malicious” foreigners.
Lin Zuoming, chairman of Aviation
Industry Corporation of China (Avic),
has repeatedly said the collapse in
Chinese share prices was part of a
“sneak attack” carried out by foreigners
to undermine the Communist party.
After the government banned share
cent of its value against the dollar since
May — attention is turning to a central
bank policy meeting today.
After raising its benchmark rate from
10.5 per cent to 17 per cent in a surprise
overnight rise last December, the cen-
tral bank has lowered the rate at each of
its monthly policy meetings since Janu-
ary to the current 11.5 per cent.
In its front page story this week, Izves-
tia reported that the central bank’s
head, Elvira Nabiullina, had warned
Russian business leaders at a closed-
door session last week that the central
bank would not lower rates this week.
The central bank does not publicly
comment on monetary policy in the
days leading up to its monthly policy
announcement and Izvestiya’s scoops
have sometimes been wrong. A majority
of analysts surveyed by Bloomberg fore-
cast the central bank would go ahead
and lower rates by 0.5 percentage points
as previously predicted. But fears rates
could remain on hold have angered
FINANCIAL TIMES
INTERNATIONAL
willingness to follow through with its
hints of a rate rise. Policymakers have
been counting on the slump in oil prices
to convince households to open their
wallets, yet thus far figures have
reflected caution.
Janet Yellen, the Fed chair, this month
noted that households are starting to
splash out more on big-ticket items such
as cars. Confirming that evidence, the
savings rate fell in the second quarter to
4.8 per cent from 5.2 per cent in the first.
“The improving jobs market, along-
side the boon to households from low
inflation and falling oil prices, has been
key to the economy’s ability to sustain
strong growth,” said Chris Williamson,
an economist at Markit. “The new data,
and the first quarter revisions in partic-
ular, remove a worrying sense of doubt
about the health of the economy.”
Real exports grew by 5.3 per cent, the
A dancer for the Hong Kong Economic and
Trade Office, which rang the opening bell,
performs in the New York Stock Exchange
this week — Spencer Platt/Getty Images
sales by large shareholders to arrest a
market slide earlier this month, Mr Lin
promised his company would actively
buy shares to prop up the market.
But in statements to the Shanghai
Stock Exchange, Avic Heibao, a listed
manufacturing subsidiary of Avic, has
said it is being investigated by the
securities regulator along with two
shareholding companies on suspicion
of illegal share transactions.
The disclosure said Avic Capital, the
trading arm of Avic Heibao, had fired its
general manager, Yang Shengjun, after
it received word of the investigation.
Earlier this month, the Shanghai
Stock Exchange also issued a
regulatory notice saying share sales by
business, which sees it as a sign the bank
is prioritising the rouble’s stability and
lower inflation over economic recovery.
High interest rates are hurting busi-
ness, said Siegfried Wolf, chairman of
Russian Machines, a subsidiary of Oleg
Deripaska’s Basic Element holding
group. “In Russia we have three to four
times higher interest rates than you
17% 11.5%
Benchmark rate The current rate
in December after following a series
a sharp increase of monthly
from 10.5% reductions
have in the countries you’re competing
with. The banks themselves have to bor-
row money from the central bank at
double digit [rates]. This is a very hard
exercise to be successful.”
Others argue the rouble’s recent vola-
tility has been hard on Russian business
owners. “All our materials are in euros
BEA said, outpacing growth in imports
of 3.5 per cent and ensuring trade made a
positive contribution despite the strong
dollar. Business spending growth
remained weak, however, with invest-
ment excluding housing falling 0.6 per
cent, the weakest since 2012. Higher first
quarterinvestment drovetherevisionin
growth up, along with inventory spend-
ingandresidentialinvestment.
The BEA figures gave a slightly firmer
snapshot of inflation, with the price
index for personal spending rising at a
2.2 per cent pace in the second quarter.
Core prices were up 1.8 per cent.
While the US performed better than
estimated in the first part of the year,
the BEA also issued revised figures that
showed growth was lower than esti-
mated between 2012 and 2014.
Measured from the fourth quarter of
2011 to the same period of 2014, GDP
Avic’s major shareholders had
exceeded 5 per cent but that the
company had failed to make the
required disclosures.
Before the investigation was
revealed, Mr Lin cast his company’s
actions as part of a heroic struggle
against foreign aggression.
Owing to Beijing’s strict quota
system, combined foreign holdings
comprise barely 3 per cent of the
Chinese equity market, making it highly
unlikely global investors would be able
to crash the market. Mr Lin could not be
reached for comment.
Jamil Anderlini, Beijing. Additional
reporting by Christian Shepherd in
Beijing
and dollars,” said Andrei Artemov, a
fashion designer. “We are always think-
ing now about how to cut costs.”
On Wednesday, the central bank
announced that it had halted its daily
foreign currency purchases after the
rouble lost more than 5 per cent of its
value against the dollar in a week, a
reflection of the weaker oil price. The
purchases were meant to shore up Rus-
sia’s international reserves.
Ivan Tchakarov, chief economist at
Citi in Moscow, said he believed the cen-
tral bank was more likely to cut rates
now that it had stopped its daily foreign
currency purchases this week. Other-
wise it would suggest the central bank is
overly concerned about inflation and
rouble volatility, he said.
Izvestiya said businessmen at the cen-
tral bank’s meeting had pleaded with Ms
Nabiullina to lower interest rates fur-
ther. It said the central banker offered
only the hope that rates would be cut by
a symbolic 0.5 percentage points.
rose at an average annual rate of 2.1 per
cent, 0.3 percentage points slower than
previous estimates, the agency said. The
personal consumption expenditures
price index average rose slightly faster
during the period, rising 1.4 per cent
instead of 1.3 per cent.
The two biggest areas contributing to
the overall revision down were con-
sumer spending, where average annual
growth was revised down two-tenths of a
per cent to 2.3 per cent over the period,
and government spending, which fell 0.9
percentandisnowdown1.6percent.
The first 23 quarters of the recovery to
thefirstquarterof2015nowshow2.1per
cent growth instead of 2.2 per cent, said
Jim O’Sullivan of High Frequency Eco-
nomics. “The pace of growth remains
extremely weak by past recovery stand-
ards, but it appears to be sufficient to
keepunemploymentcomingdown.”
In terse late-night statements, posted
in question and answer format, the
CSRC has pledged to pursue all “rele-
vant clues” as it pursues stock “dump-
ing” in contravention of its July 8 decree
banning listed companies’ large share-
holders and directors from selling their
shares.
Investors have also been urged to
report any such “malicious” activity to
official hotlines, in a throwback to the
Cultural Revolution and other political
campaigns in which the Chinese Com-
munist party encouraged people to
monitor and inform on their neigh-
bours. “Where [malicious dumping] is
discovered, the punishment will be
severe,” the CSRC said after the 8.5 per
cent fall on July 27.
“The political system in place in China
is still essentially Leninist in its struc-
ture, organisation, thinking and
instincts,” says Steve Tsang, head of
Nottingham university’s School of Con-
temporary Chinese Studies.
“The stock market is required to serve
the people and the party and the party
alone represents the people. So if the
market goes the wrong way or ‘misbe-
haves’, it is unpatriotic and should be
corrected. Anyone who drives or helps
the market ‘misbehave’ is a traitor.”
But as the rhetoric coming from the
CSRC and official media outlets grows
more strident, investors and analysts
are less inclined to believe it. “Every-
one’s smart enough to know that what
the People’s Daily is saying, and what
Xinhua is saying, is just their job,” says
Mr Chen at Gavekal Dragonomics.
“That has nothing to do with your own
decisions about portfolio management.”
“I look at the government’s actions
rather than words because the words
have no meaning,” agrees Fraser Howie,
a China securities expert who marvels at
the national team’s accumulation of
assets over the past week, including
shares in one of the country’s largest
dairy companies. “They now own 5 per
cent of a dairy. What the hell does the
government need to buy 5 per cent of a
dairy for?”
The problem for the Chinese govern-
ment is that the longer the SCI flirts with
3,500 points rather than 4,500, the
more inclined investors will be to take
advantage of the exit opportunity it is
providing. As one Beijing-based invest-
ment adviser recommends: “If they are
stabilising the market by stupidly going
long, then you should sell.”
Additional reporting by Wan Li and
April Ma
Draft financial code
India to ensure central bank
control of monetary policy
VICTOR MALLET — NEW DELHI
AND JAMES CRABTREE — MUMBAI
The Indian government plans within
months to entrench central bank direc-
tion of monetary policy, to bury a con-
troversial proposal to grant the govern-
ment of the day control over interest
rates, according to officials.
“The paramount principle is that we
have to have an independent central
bank that is top-notch in its capability
and its abilities to take the right deci-
sions for India with a long-term view,”
said one government official. “Whatever
we do will be with the full agreement of
theRBI[ReserveBankofIndia].”
Last week, India’s financial sector leg-
islative reforms commission released its
latest version of the draft Indian Finan-
cial Code, which included a plan for a
monetary policy committee similar to
Friday 31 July 2015
Turnround economies
Ireland and
Spain top
growth league
in eurozone
IAN MOUNT — BARCELONA
VINCENT BOLAND — DUBLIN
The Spanish and Irish economies are
growing strongly as both recover from
severe downturns to become the fast-
est-growing countries in the eurozone,
according to the latest data.
Both Spain and Ireland were among the
European countries worst hit by the glo-
bal financial crisis but have made strong
recoveries as a prolonged period of aus-
terity comes to an end and consumer
and business confidence returns.
Record spending by foreign tourists
helped Spain to its fastest quarter of
growth since 2007, while the Irish econ-
omy has returned to its pre-crisis size
and grew at six times the pace of the
wider eurozone.
Tourists injected €6.5bn into the
Spanish economy in June, up 4.3 per
cent on the previous year. Figures for
the first half of the year were also a
record at €28.3bn, up 7.4 per cent from
the same period in 2014, helping the
Spanish economy grow for an eighth
straight quarter.
Overall, the economy grew 1 per cent
in the three months to the end of June,
up from 0.9 per cent in the first quarter,
according to preliminary figures from
the INE, the national statistics bureau.
Official data from Dublin, delayed due
to a series of extensive revisions,
‘Better would be slightly
lower growth with more
investment and less
consumption’
showed that the Irish economy grew 1.4
per cent in the first quarter.
The International Monetary Fund
expects Spain’s economy to grow 3.1 per
cent this year and the Irish economy to
expand by 4 per cent. Earlier this week,
the Irish central bank, one of the most
cautious of official forecasters, raised its
outlook for economic growth both this
year and next to 4.1 and 4.2 per cent
respectively.
“Normality is back,” said Danny
McCoy, head of Ibec, the Irish employ-
ers’ lobby. Goodbody stockbrokers cal-
culated that the Irish economy returned
to pre-crisis level in the third quarter of
last year. Spain’s economy is expected to
play a large role in the coming national
elections, which are scheduled to be
held before the end of the year.
Staking his re-election hopes on the
improving economy, Mariano Rajoy,
prime minister, has repeatedly said that
reform policies put in place by his Popu-
lar party (PP) have been responsible for
Spain’s turnround and strong economic
performance.
Last week, the INE announced that
Spain had created 411,000 jobs in the
last quarter, the largest quarterly
employment growth since 2005. Unem-
ployment fell from 23.8 per cent in the
first quarter to 22.4 per cent in June.
But according to José Ignacio Conde-
Ruiz, a professor of economics at the
Universidad Complutense de Madrid,
Spain’s growth is heavily weighted
towards increases in domestic con-
sumption. “Better would be slightly
lower growth with more investment and
less consumption,” he said.
Unemployment ranks as the most
important issue among Spanish voters,
according to a recent survey by the
national polling service. Corruption
and the economy were ranked second
and third respectively in last month’s
survey.
the Bank of England’s, except that most
members would be appointed by the
central government, not by the bank.
In a note yesterday, Capital Economics
described it as “a cause for concern given
the track record of previous govern-
ments attempting to dampen the central
bank’s power and independence”. Under
the code, the RBI would also be responsi-
ble for meeting inflation targets despite
havingnocontrolofinterestrates.
But Jayant Sinha, minister of state for
finance, has described the draft as “sim-
ply an input” to the debate and not gov-
ernment thinking. “The proposed mon-
etary policy committee of the RBI will be
setting the rates, not the government,”
he said this week. But there is a faction in
New Delhi that wants to curb the RBI’s
independence. “It’ll be in limbo for a
while. I can’t see it resolving very
quickly,”saidaformercentralbanker.
Friday 31 July 2015 ★ FINANCIAL TIMES 7
8 ★
Airliner search
Beach debris ‘major lead’ in hunt for MH370
Wreckage washed up on
La Réunion raises hopes
it is from missing aircraft
JAMIE SMYTH — SYDNEY
ROBERT WRIGHT — NEW YORK
AND MARK ODELL — LONDON
Malaysian officials expressed confi-
dence that a piece of aircraft debris
washed up on a beach on the Indian
Ocean island of La Réunion is from a
Boeing 777 jet, increasing the likelihood
it comes from flight MH370, the Malay-
sia Airlines aircraft that disappeared 17
months ago without a trace.
Malaysia’s prime minister, Najib
Razak, confirmed earlier comments by
one of his ministers that the piece of
wreckage was almost certainly from a
Roar of anger over Cecil puts focus on game hunting
Conservationists and shooting
groups are split on the best
method of sustaining species
JOHN AGLIONBY — LONDON
KATRINA MANSON — NAIROBI
When Cecil, Zimbabwe’s — and now
the world’s — most famous lion died 40
agonising hours after being shot by an
American dentist, he was at least lucky
enough to have spent the previous 13
years roaming free.
By contrast as many as 6,000 lions in
southern Africa are bred and raised in
captivity for the purpose of being
hunted by wealthy tourists.
The killing of Cecil by Walter Palmer,
the Minnesota dentist who has gone into
hiding after he provoked outrage
around the globe, has shone a spotlight
on big game hunting in southern Africa,
an industry that Peter Knights, execu-
tive director of the US-based WildAid,
estimates is worth around $1bn a year.
Cecil was allegedly lured illegally
from a game reserve in Zimbabwe and
two men have been charged over his
death and may face poaching charges in
a Zimbabwean court, while Mr Palmer
insists he did not know he was breaking
the law. Still, hunting is legal in parts of
Zimbabwe, as well as in Mozambique,
Namibia and Tanzania.
Meanwhile, in South Africa there are
200 farms whose main purpose is to
breed lions for wealthy tourists to come
and spend hundreds of thousands of
dollars to shoot them. About 900 are
killed in legal hunts each year, according
to Pieter Potgieter, the chairman of the
South African Predator Association.
“The rest are kept for tourist purposes
while some are exported, mostly to the
Middle East and Asia,” he says.
The practice has become known as
canned hunting. Cubs are usually sepa-
rated from their mothers early in their
lives and kept for petting until they
become a threat to tourists. Once they
are fully grown they are hunted.
Mr Potgieter and other canned hunt-
ing advocates say it is critical for sus-
taining the species. “By hunting captive
bred lions, the hunting pressure is taken
off the wild lions,” he says. “There’s a
direct link between the decline in the
hunting of wild lions and the increase in
the hunting of captive lions.”
Indeed, wildlife groups acknowledge
that in South Africa the population of
wild lions appears to have stabilised.
And lions, while regarded as at risk, are
not as endangered as other species, like
India executes accountant for helping plan 1993 bombings but chief suspects remain at large
Yakub Memon’s hanging has
reinforced the view New Delhi
seeks retribution not justice
AMY KAZMIN — NEW DELHI
India’s use of the death penalty was the
subject of renewed debate yesterday,
after authorities hanged a 53-year-old
Muslim accountant convicted of
involvement in a series of bomb blasts
that killed 257 people and injured
another 700 in Mumbai in March 1993.
Yakub Memon, who was found guilty
of helping to plan and finance the explo-
sions but who had maintained his inno-
cence, was hanged at 7am yesterday,
after India’s supreme court rejected his
last-minute mercy petition.
The 1993 bombings were the largest
co-ordinated terror attack ever on
Indian soil. Over a two-hour period on a
Boeing 777 aircraft. “Reports suggest
that the debris is very likely to be from a
Boeing 777, but we need to verify
whether it is from flight MH370. At this
stage it is too early to speculate,” Mr
Najib wrote on his official blog.
If the part is from a 777 twin-engined
jet, it is highly likely to be from MH370,
since other known losses of the aircraft
type — including last year’s shooting
down of Malaysia Airlines Flight MH17
over Ukraine — occurred over land.
Mr Najib said the piece of debris
would be sent to a laboratory in Tou-
louse, France, for inspection by investi-
gators from the Bureau d’Enquêtes et
d’Analyses. La Réunion is a French terri-
tory east of Madagascar, which under
international law makes the BEA the
lead investigative body.
Southern Africa. Wildlife protection
day that became known as “Black Fri-
day”, 13 bombs exploded in crowded,
high-profile locations, including the
Bombay Stock Exchange, the Air India
building, the passport office, cinema
halls, markets and hotels.
The main accused remain India’s two
“most wanted” men — former Mumbai
underworld figure Dawood Ibrahim,
and Mr Memon’s brother, Mushtaq
“Tiger” Memon. Both are believed to be
living in Pakistan, protected by Paki-
stan’s military intelligence, which New
Delhi accuses of helping to orchestrate
the bombings.
Members of the ruling Bharatiya
Janata party said Yakub Memon’s exe-
cution delivered justice for the victims
of the attack, and Mukul Rohatgi, the
attorney-general, urged that other
pending death penalty cases be acceler-
ated to deter further acts of terrorism.
Human rights activists, prominent
judicial figures and leading newspapers
FINANCIAL TIMES
INTERNATIONAL
The Malaysians, Australians and Chi-
nese have been conducting an extensive
search for the aircraft off the west coast
of Australia since it disappeared on
March 8 2014. The jet was carrying 239
people on a flight from Kuala Lumpur to
Beijing.
Warren Truss, Australia’s deputy
prime minister, described the discovery
of the debris as a significant develop-
ment. “It’s the first real evidence that
there’s a possibility that part of the air-
craft may have been found,” he said. But
he cautioned: “It’s too early to make that
judgment, but clearly we’re treating this
as a major lead.”
There were also unconfirmed reports
that a badly damaged piece of luggage
has been found close to where the debris
washed up on La Réunion. Journalist
In the
crosshairs:
protesters rally
outside Walter
Palmer’s clinic
in Minnesota
this week,
above, after he
shot Cecil, left.
The lion’s death
has provoked
questions over
big game
hunting by
wealthy tourists,
right
Eric Miller/Reuters; AFP/
Zimbabwe National Parks
Mumbai terror attack. Capital punishment
have condemned the execution, with
some saying the hanging offered the
“appearance” of justice rather than its
substance.
Bollywood star Salman Khan even
jumped into the fray last week, with a
controversial tweet suggesting Yakub
Memon was being executed in lieu of his
brother, while others have suggested
authorities were seeking retribution
and vengeance rather than justice.
The debate over the details of Mr
Memon’s case have spilled over into a
wider public discussion over the merits
of the death penalty.
“A truly lasting solution to the moral
dilemma that each instance of capital
punishment poses will be to abolish it
altogether and replace it with a sentence
of imprisonment for the rest of the con-
vict’s life,” the Hindu newspaper wrote
in an editorial, calling the hanging
“inhuman and unconscionable”.
Shashi Tharoor, a former Congress
Julien Delarue, who works for a local
newspaper, posted a photograph of the
suitcase on Twitter. It is not known
whether the luggage came from MH370.
The Australian Transport Safety
Bureau said yesterday that the discov-
ery of the wreckage on the island was
“not inconsistent with the current
search location” which is 4,200km east
of La Réunion. The search teams are
working on the theory that MH370
crashed within a 120,000 sq km area of
the southern Indian Ocean, 1,800km
south-west of Australia.
If the part is from the missing flight, it
could provide critical clues to the fate of
MH370: radar tracking showed the air-
craft changed course to the west after
heading north-east from Kuala Lumpur
en route to Beijing without any further
minister, tweeted: “Saddened by the
news that our government has hanged a
human being. State-sponsored killing
diminishes us all by reducing us to mur-
derers too.”
India’s judicial and intellectual elite
has grown increasingly uncomfortable
with the use of the death penalty, even as
the wider public — fed up with seemingly
pervasive lawlessness — appears hungry
formorewidespreadapplication.
Indians protest against the death
sentence in New Delhi this week
communication from the pilots. Later
analysis of satellite signals suggested the
aircraft had then turned south and
headed out over the Indian Ocean.
Assumptions were made about the
aircraft speed and height and it was
decided it was likely to have ditched in
the sea somewhere off Australia’s west
coast when it ran out of fuel.
A multinational force of ships and air-
craft have spent months searching a
large area of the Indian Ocean without
success. Experts said the discovery of
the wreckage so far from the theoretical
crash zone was consistent with the
direction of the ocean currents.
The undersea search for Flight
MH370 is one of the most complex and
expensive in aviation history, costing
about $150m to date.
rhino. But Alicia Craw, the international
head of wildlife campaigns at World
Animal Protection, says there are fewer
than 35,000 lions in the wild, or less
than 7 per cent of the estimated “origi-
nal” population. But hunters insist their
industry helps conserve animal num-
bers and protect their environments.
”You cannot hunt if you don’t have an
animal,” says Abdukadir Mohamed,
secretary-general of the Tanzania Hunt-
ing Operators Association, who argues
that hunters are conservationists by
default because they rely on big wildlife
populations for their income. He points
out that they also put money back into
communities as well as protecting ani-
mals and environments from poachers
in a bid to boost animal numbers.
Mr Mohamed says that while a licence
to hunt lions costs $5,000, the total cost
of a hunting safari can run from $50,000
to as much as $200,000 and earns the
Tanzanian government $12m each year.
Kenya, which relies on safaris for
much of its tourism revenues, banned
big game hunting soon after independ-
ence and more recently went on to ban
hunting game birds too. But some peo-
ple are calling for a rethink.
“I think hunting on the continent is
hopelessly corrupt but if it’s correctly
managed, it’s a useful tool to get revenue
back into supporting conservation,”
says Michael Dyer, a former hunter
turned conservationist who has
recently introduced rhino to his ranch
in the Kenyan highlands. He employs a
full-time team of guards akin to a well-
armed militia to protect 22 rhino.
As the reaction to Cecil has shown, the
issue remains emotive. Born Free a lion
charity, is among those joining a cam-
paign to stop the importation of hunting
trophies. Emirates airlines recently
responded to popular pressure and
instituted a ban. But hunters are win-
ning some of the arguments. Earlier this
month South African Airways reversed
its ban on the transport of lion trophies
and skins after intense lobbying.
“We informed them of the impor-
tance of the industry to South Africa,”
Mr Potgieter says. “And we told them
that if it’s government policy to support
the industry why should the national
carrier oppose the policy?”
But Mr Knights is among those hoping
that the photograph hunters will win
out over their gun-toting counterparts.
“It takes a lot more cojones to go after
a big animal armed with just a camera
than a high-powered rifle,” he says.
Additional reporting by Barney Jopson in
Washington
Notebook page 10
In 1980, India’s supreme court
affirmed the constitutionality of the
death penalty, but said it should be used
only sparingly — in the “rarest of rare
cases”. It subsequently clarified that
death was warranted to assuage “the
collective conscience of the commu-
nity” for particularly shocking crimes.
A total of 1,600 convicts have been
sentenced to death in India since 2000,
according to the National Law Univer-
sity and the National Legal Aid Services
Authority. But before yesterday’s hang-
ing, only three death sentences had
been carried out.
After the 2004 hanging of a security
guard for the rape and murder of a 14-
year-old schoolgirl, New Delhi imposed
an unofficial moratorium on enforcing
the death penalty. That ended with the
2012 execution of Ajmal Kasab, the lone
surviving Pakistani gunman from the
terror attack on Mumbai’s five-star
hotels and train station in 2008. Four
Friday 31 July 2015
Eastern Europe
Russian jets
test Nato’s
Baltic airspace
response time
SAM JONES
DEFENCE AND SECURITY EDITOR
Fighter jets from Nato’s Baltic air polic-
ing mission have scrambled to inter-
cept 22 Russian aircraft in multiple for-
mations in the past week, including two
of the largest interceptions over east-
ern European skies since tensions with
Moscow began to rise 18 months ago.
Nato aircraft have had to conduct emer-
gency deployments on more than 250
occasions this year over Europe, offi-
cials told the Financial Times, the high-
est number for an equivalent period
since the end of the cold war.
The alliance’s Baltic air policing mis-
sion has conducted 120 of those scram-
bles. The Europe-wide figure compares
with 400 events for the whole of 2014,
marking what Nato sees as a steady
growth in the size and seriousness of
Russia’s aerial provocations.
“In the last year, Russia’s air activity
close to Nato borders has increased in
quantity and complexity,” Nato said.
“Russian aircraft often fly without their
transponders switched on, without fil-
ing flights plans and without communi-
cating with air traffic authorities.”
Transponders allow civil aviation
authorities to locate aircraft easily.
Russia has been careful not to breach
Nato airspace, but the increase in activ-
ity can be seen as an attempt by Moscow
to test the alliance’s response times.
The European Aviation Safety
Agency, a civilian body, ruled in April
that Russia’s flights pose a “high risk” to
civil aviation.
In January, the UK summoned the
Russian ambassador to London for a
dressing down after Russian nuclear-
capable bombers disrupted civilian air
traffic over the English Channel.
Last October, Nato states were forced
to deploy emergency fighters in multi-
ple locations over a 48-hour period in
response to “significant military
manoeuvres” on the margins of Nato
airspace.
Nato has doubled the size of its Baltic
air policing mission this year as a result
of Moscow’s growing aerial probing. The
mission, which has been running for the
past decade, involves the provision of
combat aircraft to the Baltic states,
which do not possess their own air
forces.
Two Nato nations are required to con-
tribute fighters to bases in Estonia and
Lithuania for the mission on a six-
month rotational basis. Italy and France
are voluntarily stationing further fight-
ers at Siauliai in Lithuania and Malbork
in Poland.
On Wednesday, Norwegian F-16 fight-
ers stationed in Lithuania were scram-
bled to intercept 12 Russian aircraft.
The aircraft appeared to be flying as part
of a training mission but had turned off
their transponders.
Last Friday, British Typhoon fighter
jets stationed at Amari in Estonia were
deployed after Nato air defences picked
up 10 Russian aircraft approaching Bal-
tic airspace across the Gulf of Finland.
The alert is the single largest intercept
British airmen have performed in the
region. The Russian aircraft, which
included four MiG-31 fighters, were
tailed closely by the Typhoons as they
flew from Russia towards the enclave of
Kaliningrad. They had also switched off
their flight transponders.
The incident is the 18th so-called QRA
— quick reaction alert — from Amari for
the Royal Air Force this year, marking a
significant increase in activity.
Last year the RAF scrambled 13 times
in Estonia.
months after Kasab’s execution, Afzal
Guru, a Kashmiri convicted of involve-
ment in a 2001 attack on the Indian par-
liament was also hanged.
Last January, the supreme court com-
muted the sentences of 15 death row
prisoners after deciding the govern-
ment had unduly delayed in ruling on
their mercy petitions. The court subse-
quently commuted the death penalty
for three of the assassins of former
prime minister Rajiv Gandhi on the
same grounds.
Mr Memon’s execution has reinforced
perceptions that New Delhi is pushing
ahead with the execution of Muslims
convicted of political violence, while
going softer on Hindus.
“The standard is so subjective,” says
Karuna Nundy, a supreme court lawyer
opposed to the death penalty. “The
death penalty is bad even when uni-
formly applied but when it’s selectively
applied, that is when it really shocks.”
Friday 31 July 2015
In the wake of the NSA surveillance scandal, US tech companies are shielding more data from the
government’s eyes. But US and European officials say these steps make it harder to track terrorists.
G
rowing impatient with the
restrained debate among
the Washington policy
wonks, the bearded Sili-
con Valley engineer stood
up and took aim at the man on the
stage.
Admiral Mike Rogers, the director
of the National Security Agency, had
just made his case for a new legal
framework to allow the government
to monitor data surging through US
computer networks. Rising to chal-
lenge him was Alex Stamos, then the
top security engineer at Yahoo, who
denounced the idea that tech compa-
nies should build “back doors” into
their systems to give governments
access to information.
“If we’re going to build defects,
back doors or golden master keys for
the US government, do you believe —
we have about 1.3bn users around
the world — we should do [the same]
for the Chinese government, the Rus-
sian government, the Saudi Arabian
government, the Israeli government,
the French government?” Mr Stamos
asked.
Mr Rogers initially tried to laugh off
the attack. But then he struck back
against the tech industry’s claims of
responsibility to protect users from the
prying eyes of government.
“This simplistic characterisation of
one side is good and one side is bad is a
terrible place for us to be as a nation,”
Mr Rogers said. “We have got to come to
grips with some really hard, fundamen-
tal questions.”
The face-off in February was a dra-
matic demonstration of the impasse
between the US government and Amer-
ica’s most innovative industry. The bat-
tle is over encryption — software that
uses secret keys to protect credit card
details, private emails and corporate
secrets from cybercriminals. While tech
companies are embracing encryption,
Mr Rogers and top Obama administra-
tion officials are seeking the right to use
secret keys to track terrorists and other
criminals.
Before Edward Snowden leaked
details of the NSA’s mass surveillance
tactics two years ago, only a few technol-
ogy services used the tough type of
encryption that scrambles information
so even the tech and communications
companies cannot read it: Apple’s iMes-
sage and FaceTime, along with Micro-
soft’s Skype. But after the revelations,
the industry faced a backlash from con-
sumers who felt the tech groups were
complicit in allowing their data to be
monitored. Now tougher encryption is
fast becoming a standard — perhaps
offering consumers more privacy pro-
tections, but also potentially posing
challenges for law enforcement.
WhatsApp, the messaging app owned
by Facebook, turned on strong encryp-
tion software for Android users late last
year. Google and Yahoo are working on a
project to allow a similar level of secu-
rity in their email services by the end of
the year. As a result, their users — the
companies have a combined 2bn
accounts — will have at least the option
to encrypt their communication end-to-
end by the end of the year.
Yet this kind of encryption can also
render invisible information that gov-
ernment officials claim is vital to law
enforcement and national security. In
the words of James Comey, director of
the US Federal Bureau of Investigation,
the rise in encryption has meant that
huge swaths of the internet have “gone
dark”, making it harder to track terror-
ists and other criminals. In Europe —
where the post-Snowden backlash
against US tech was the loudest — fears
of teenagers using encrypted messaging
to communicate with fighters from the
Islamic State of Iraq and the Levant
(Isis) have led to the threat of new laws
to try to stop the tide of encryption.
Until recently, encryption was a pro-
hibitively expensive technology to use
on a large scale. Algorithms scramble
information into unreadable form, then
unscramble it — using lots of processing
power.
The relentless fall in the cost of com-
puting was already starting to change
that. But tech companies, eager to
repair their reputations with customers,
have embraced the technology. Google
has led the drive, having been humili-
ated by the revelation that its own gov-
ernment — along with that of the UK —
had hacked into its internal network
and tapped a trove of unencrypted data.
The news highlighted a blind spot in the
defences of a company that prided itself
on leading the industry in security.
Google quickly extended encryption to
★ FINANCIAL TIMES
FT BIG READ. FT SERIES: CYBER INSECURITY
By Hannah Kuchler and Richard Waters
Going dark
Who is encrypted?
Service Company
WhatsApp Facebook
Gmail
Google
Yahoo Mail Yahoo
Facebook Facebook
iMessage Apple
FaceTime Apple
Twitter direct messages Twitter
Skype Microsoft
FT graphic Source: FT research * Estimate
information it moves wholesale
between its own data centres — and
launched a campaign to persuade oth-
ers to use encryption as a default.
Sorry, can’t help you
But if the greater use of technology
like this has made illicit government
surveillance and criminal hacking more
difficult, it is the spread of so-called
“strong”, or end-to-end, encryption that
has really alarmed law enforcement
agencies. These systems take the tech-
nology a step further and make it impos-
sible even for the companies that proc-
ess or carry the data to unscramble it —
therefore preventing governments from
demanding they hand over informa-
tion, even with a court order.
IBM, Cisco and others that sell IT and
communications systems to companies
and governments were also hit hard by
the Snowden leaks. Among other things,
they fuelled a nationalistic backlash in
China as government buyers turned to
local tech suppliers, and gave the tech
suppliers good reasons to come up with
stronger guarantees about data security.
In response, IBM this year opened its
mainframe computer technology to
allow customers to use their own
Edward encryption algorithms — in effect,
Snowden giving them full control over their
set off a information and making it impos-
rush to sible for IBM, or any outside gov-
encrypt ernment, to read it.
data Big Blue has gone further,
licensing its server chip
technology to Chinese
manufacturers in a
way that gives them
control over
encryption, says
Martin Schroeter,
IBM’s chief finan-
Monthly active user numbers
800m (Android users)
900m
225m
1.4bn
450m (iPhone users*)
450m (iPhone users*)
302m
300m
cial officer — a measure he says that was
intended to reinforce trust and confi-
dence in the US company’s technology.
Other data services used by busi-
nesses have taken a similar stance.
Dropbox, one of the most widely used
“cloud” data storage services, has
opened its platform to let users bring
their own encryption. Tech companies
argue that such tactics guarantee both
the security of digital data and user pri-
vacy in the face of both government
over-reach and increasingly sophisti-
cated cyber criminals.
As an executive at one big US tech
company explains: “We don’t own our
customers’ data — we don’t want to be in
a situation where we have to hand it
over [to government] just because we
happen to be processing it.”
Tech executives hope that drawing a
clear line will address other doubts
about some of their other practices. The
Snowden scandal also raised new ques-
tions about companies such as Google,
which rely on collecting and analysing
large amounts of data about their users
to sell advertising.
A White House report into Snowden
shone the spotlight on the “big data”
practices of tech companies like Google.
In Silicon Valley, it was seen as a blatant
attempt by Washington to deflect atten-
tion from its illicit surveillance by drag-
ging the industry through the mud.
Offering users deeper encryption is one
way to respond to these disputes.
Return of the ‘crypto wars’
The resulting tide of encryption has
been vehemently criticised by govern-
ments and law enforcement agencies
across the US and western Europe.
Mr Comey, the FBI director, has made
a series of speeches criticising Apple and
Encrytion
End-to-end
HTTPS (end-to-end opt in due this year)
HTTPS (end-to-end opt in due this year)
HTTPS
End-to-end
End-to-end
None
End-to-end for internet calls,
not for calls to phones or chat
Google for going too far with encryption.
Most recently, he told Congress that it
was critical for his agency to be able to
access communications to combat Isis,
which is increasingly dependent on the
internet.
In Europe, the turnround from shock
at US mass surveillance to demanding
more rights for European governments
to read online communications, has
been swift and stark. French intelli-
gence services have won sweeping pow-
ers in a bill that legalised phone tapping
and email interception passed in May.
David Cameron, UK prime minister, has
proposed a complete ban on strong
encryption to “ensure that terrorists do
not have a safe space in which to com-
municate”.
Many in the cyber security industry,
however, claim that an outright ban
would be like trying to put the encryp-
tion genie back in the bottle. It would be
impossible to guarantee that technolo-
gies created to give government access
to encrypted systems would never fall
into the hands of hackers, they argue.
“There’s a lot of threats out there,
there are risks to people’s safety,” says
Scott Renfro, from Facebook’s security
team. “But at the same time, there’s no
way to weaken encryption and make it
available only to certain parties.”
Whit Diffie, a 71-year old security pio-
neer and co-inventor of the basic
approach used in most modern encryp-
tion systems, says systems work best
when they are “as simple as possible”.
This means that it is counter-productive
to try to build in the kind of special
access governments are demanding.
“If you compromise the basic tools,
you are particularly likely to make
exploitation by foreign governments
more feasible,” he says.
9
The fight over encryption has echoes
of the 1990s, when the US government
pushed for the adoption of a silicon chip
it could decrypt remotely. This was
before the US launched the “war on ter-
ror”, but officials were already arguing
for more power to fight terrorism and
other crimes such as kidnapping.
The Clipper chip, designed for voice
communications, used an encryption
algorithm invented by the NSA. The key
would be put in escrow until the govern-
ment gained legal authority to listen to a
conversation. But the chip, announced
in 1993, was defunct three years later
after a backlash from anti-surveillance
campaigners and a lack of adoption
from manufacturers.
The “crypto war” of the 1990s was
only a shadow of what it is now, Mr Diffie
says. “Cryptography is extremely
important to the whole digital economy.
It has developed dramatically since the
last time we fought this battle, a little
less than 20 years ago.” Encryption is
now much harder for governments to
resist because it is now “in very, very
broad use”.
The cyber security threat is also much
greater, with nation states including
China and Russia pouring resources into
cyber espionage and well-funded organ-
ised criminal networks honing their
skills.
But many in the tech world argue gov-
ernments may actually have more
access to information than they did
before encryption started to become
standard. “I don’t think they are magi-
‘We don’t own our
customers’ data — we don’t
want to be in a situation
where we have to hand it
over to the government’
FT montage/Getty
cally unable to solve crime any more,”
says Bruce Schneier, a cryptographer.
Encrypted from “We’re living in a world where there are
dozens of investigative, forensic tech-
Nov 14 niques that have improved in the last
years — DNA, fingerprints, location.”
Mar 14 No compromise in sight
Jan 15 But with both sides staking out strong
positions, it is hard to see where a com-
Jul 13 promise will be found. Like many of the
methods used to fight back against a
Jun 11 wave of cyber crime, attempts to deploy
encryption risks getting mired in
Jun 10 complex political and legal debates even
as hackers power on, learning new
na tricks.
Google is set to provoke a new show-
Aug 03 down between law enforcement and the
tech industry this year with the release
of its own end-to-end encryption sys-
tem for use with its Chrome web
browser. People close to the project have
played down its potential impact, claim-
10110100110101 ing that only a small number of users are
011CYBER010110 likely to want to use it.
11100110101011 Many of the company’s other services
0 I NSECURITY 111 rely on the ability to monitor a user’s
10100110101011 actions so it can provide relevant infor-
mation or advertising — an ironic
FT series reminder of just how slippery the issue
This is the last of of encrypting data has become. When it
five articles on meets their needs, even tech companies,
cyber security.
To read the like governments, can see the necessity
previous pieces, of setting some limits to the use of
visit unbreakable encryption everywhere.
ft.com/ Mr Stamos, who now works at Face-
cyberinsecurity book, blamed the crisis over encryption
on law enforcement reaching for what
looked like an easy option — without
thinking about the consequences for the
security of users or the future of the tech
industry. “What are the knock-on
effects of asking for things like back
doors on the competitiveness of the
[US] tech industry, for other people
using our tech, and other countries ask-
ing for back doors themselves?”
C Secret battle The US and tech
groups are battling over encryption,
software that uses secret keys to
protect data
C All is revealed Before Edward
Snowden revealed the NSA’s
surveillance, few tech services used
tough “end-to-end” encryption
C Hard to crack Now, as Google, Yahoo
and others adopt tougher encryption
policies, government agencies warn
that security is being compromised
10
FRIDAY 31 JULY 2015
Renzi needs to sharpen
his rapier of reform
The Italian PM cannot allow the pace of modernisation to abate
A year ago, Italy’s prime minister Mat-
teo Renzi gave an interview to the
Financial Times — his first with a for-
eign newspaper — promising to change
his country. At one point brandishing a
rapier for dramatic effect, the then 39-
year-old former mayor of Florence said
he would enact tough reforms. Not only
would these return Italy to growth,
ending a three-year-old recession, but
he would revive a “sleeping beauty”
that after more than a decade of stagna-
tion is carrying a debt burden of 130
per cent to gross domestic product.
Fortune favoured his chutzpah. A
weakening euro, lower oil prices and
quantitative easing by the European
Central Bank gave him wind at his back
for the first part of this year. More
recently, comparison with another
young politician from southern Europe
— Alexis Tsipras — has made Mr Renzi
appear an exemplar of Generation X
statesmanship.
Nor has Mr Renzi idled. Unleashing a
blizzard of activity from his office in
Rome he has declared “done” reforms
of the electoral and judicial system,
labour market, education and banks.
Investors have noticed. Foreign
investment into Italy has surged four
fold, to a total value of $19.3bn in the 12
months to June. Foreign buyers cite
political stability and the speeding up
of company litigation and bankruptcy
proceedings as significant, along with
attractively low asset prices. This week
Germany’s HeidelbergCement bought
family-owned Italcementi for €1.7bn.
Meanwhile, capital from the west
and east is flowing into Italy’s stock
market. BlackRock has taken stakes in
Snam, UniCredit, Luxottica, Prysmian,
Atlantia, Intesa, Telecom Italia, Eni,
Enel and Generali. People’s Bank of
China is today a significant investor in
many of the same.
But despite these votes of confi-
dence, Italy’s economy is showing only
Japan is justified in its
new defence posture
Abe needs to sell security stance better, at home and abroad
It is nearly 70 years since Japan’s sur-
render at the end of the second world
war. In 1947, under US occupation, it
adopted a pacifist constitution, written
by Americans, in which it renounced
the right to wage war. So difficult was it
made to amend that, unlike in the case
of Germany, not a single article of the
constitution has been changed since
then.
Now Japan is passing legislation that
will allow it to reinterpret this docu-
ment, enabling it to engage in what is
known as collective self-defence. Some
describe it as the biggest change to
Japan’s defence posture since the war.
That is an exaggeration. Japan has
already stretched the meaning of its
constitution to breaking point. Article
9 stipulates that it must not maintain
land, sea or air forces. In practice, and
initially under US urging, Japan has one
of the best-equipped armed forces in
the world. The fact that it is known as
the Self Defence Forces provides a fig
leaf. Japanese troops have participated
in UN peacekeeping operations, helped
fuel US combat-ready ships in the
Indian Ocean and even built infrastruc-
ture in Iraq.
Now, Shinzo Abe, the conservative
prime minister, wants to make it easier
for Japan to deploy its military abroad.
Broadly, collective self defence will
allow it to fight alongside its US ally in a
conflict, say a war on the Korean penin-
sula, deemed to pose an immediate
threat to Japan’s security. It will also be
able to help the US logistically in situa-
tions that have a significant influence
on Japan. Such changes, actively sup-
ported by Washington, are opposed by
China and South Korea, which see
them as evidence of a new Japanese
militarism.
It is true that Mr Abe is a nationalist.
It is also true that he has some dis-
tinctly revisionist views. Nor has he
done a good job at explaining the need
weak signs of growth. The Bank of Italy
in July raised its GDP forecast to just 0.7
per cent in 2015 from its previous 0.5
per cent, and expects 1.5 per cent in
2016. A monthly bonus of about €80
for middle-income Italians is having
little effect.
In spite of a much trumpeted reform
of the labour market, unemployment
remains stubbornly high at 12.4 per
cent. Youth unemployment is 41.5 per
cent. The IMF this week said that with-
out a significant acceleration in growth
it would take Italy 20 years to return
unemployment to pre-crisis levels. Its
public debt remains as high as before.
Now the wind at Mr Renzi’s back is
abating. Eurosceptic, anti-immigration
parties are gaining traction amid per-
vasive public gloom about the econ-
omy, corruption and a migration crisis.
His centre-left party’s polling is down
from mid-2014 highs of 45 per cent to
below 35 per cent. The timetable for
reforms is continuing to slip. Pledged
overhauls of the Senate, public admin-
istration and tax reform, the real game
changers for Italy, are now far more
vulnerable to political compromise.
Amid this darkening picture Mr
Renzi this month has pledged to slash
taxes on first homes next year, corpo-
rate taxes in 2017 and income taxes in
2018, on top of €18bn of tax cuts
pushed through since last year.
But while a reduction in the 30 per
cent corporate taxation is badly
needed, the first homes giveaway looks
like a populist sop. Mr Renzi also can-
not in seriousness go to Brussels argu-
ing for leniency on a budget deficit of
2.6 per cent without making extensive
— and unpopular — spending cuts to
Italy’s costly public administration.
Mr Renzi, like Silvio Berlusconi, likes
to present himself as Italy’s saviour. His
progress is better than that of his dis-
credited predecessor. He needs to
sharpen his rapier to show he means it.
for collective self-defence to his own
public. In Washington, he has played
up Japan’s new role to act alongside the
US, while at home he has tried to
present the changes as minimal.
According to opinion polls, a majority
of Japanese do not like the new security
stance, with many fearing Japan
could get dragged into US military
adventures.
Even so, the changes are justifiable.
The rise of a militarily more muscular
China alters Japan’s security environ-
ment. So does the fact that an unstable
North Korea has a nuclear bomb. Japan
has not done as good a job at atoning for
its wartime aggression as Germany, but
Japanese troops have not fired a shot at
an enemy in 70 years. If the security
bills currently trundling through par-
liament are passed, Japan’s constitu-
tional leeway to engage in military
action will still be more restricted than
almost any other country in the world.
Besides, many Asian countries, includ-
ing India, the Philippines and Vietnam,
are worried about China’s growing
assertiveness and support a more mili-
tarily capable Japan.
Still, there are dangers. Japan should
use its new powers sparingly. It must
not look as though it is ganging up with
the US to contain China, a policy that
could backfire if Beijing concludes its
legitimate interests are threatened. Mr
Abe should also work harder at pre-
senting Japan as a modern, peaceful
nation. When he gives a speech on the
70th anniversary of the war next
month he should repeat previous apol-
ogies, and even expand on them in the
interests of trying to bury history once
and for all.
If he does all that, China should
reciprocate. It is time for Asia to put the
events of 70 years ago behind it. A
more “normal” Japan — if one still con-
stitutionally restrained — is part of that
process.
★ FINANCIAL TIMES
Forced to work more hours just to maintain living standards
Sir, There is surely a third explanation
for the fact that working hours have
not diminished as Keynes anticipated.
As Tim Harford suggests (“The
rewards for working hard are too big
for Keynes’ vision”, July 30), some
work because they enjoy what they do,
others because they want more money.
The third category, though, consists of
those caught by the changing terms of
trade in the labour market. In many
countries real wages have declined in
recent years, especially for those
without scarce skills — a category that
includes not just manual workers but
also journalists and academics. To
maintain let alone improve living
standards, many people have to work
more hours, often in multiple jobs. This
shift is the product of ever-advancing
technology, globalisation and
population growth — factors
Christian approach
to usury forced Jews
into moneylending
Sir, John Kay is right that the small
Jewish community in the Middle Ages
was scapegoated for money lending
(“What St Luke would say to
Schäuble”, July 29). This was ironic on
two counts. First, they were forced into
these occupations by the Christian
approach on usury, or the restrictions
on lending money at interest. Second,
Jewish financiers, like Aaron of
Lincoln, actually helped to build
Lincoln Cathedral, St Albans Abbey
and at least nine other monasteries.
This year, we are marking the 800th
anniversary of the Fourth Lateran
Council in 1215, which said that Jews
living in Christian lands should wear a
badge on their clothing. The economic
tensions, allied to religious-based anti-
Semitism, had dramatic consequences,
leading to the expulsion of the Jews in
1290 by King Edward I. England had
the shameful record of being the first
country to expel its Jews, and was
swiftly followed by the likes of France
in 1306 and Spain in 1492.
Zaki Cooper
Trustee, Council of Christians and Jews,
London W1, UK
Caliphate of Isis is
un-Islamic and brutal
Sir, As a proud Brit and just one of the
7,000-plus British youth members of
the peaceful Ahmadiyya Muslim
Community, I find there to be no
conflict in being British and my
Islamic faith. However, I do find there
to be an issue with David Cameron’s
presumption that we cannot deny “a
connection between the religion of
Islam and the extremists”.
Islam’s foundation is the Koran
which clearly rejects extremism and
terrorism of any kind. I would not
disagree if Mr Cameron were to say
there is a link between terrorism and
certain Muslims. This I believe is a very
simple but significant distinction and
the UK government should
acknowledge this. When Islam is said
to have a link with extremists, every
peaceful Muslim is understandably
hurt to see his/her faith’s peaceful
teachings linked to barbaric acts that
find no basis in the Koran.
The Caliphate of Isis is completely
un-Islamic and brutal. But it must be
Walter the
dentist: the new
face of the great
white hunter
Notebook
by Robert Shrimsley
Letters
unmentioned in Keynes’ famous essay
on the possibilities for our
grandchildren.
On one other factor Mr Harford is
definitely wrong. He suggests that
Keynes as the guardian angel of
economists could be looking down on
him as he writes his column. Keynes
would never look down on a fellow
economist. He would debate fiercely
and then, as the facts have changed
since 1930, he would gracefully and
generously adjust his views.
Nick Butler
Visiting Professor,
Kings College London
Sir, Keynes wrote “Economic
Possibilities for Our Grandchildren”
many years before he had devised his
General Theory (“The rewards for
working hard are too big for Keynes’
remembered that the concept of
Caliphate is a central Islamic concept,
and there is nothing wrong with the
concept as long as it is the true peaceful
Caliphate. The tens of millions of
Ahmadiyya Muslims across the globe
have already been living under a
spiritual Caliphate for more than 100
years. And the Caliphate has guided the
Ahmadiyya Muslims to the true
peaceful teachings of Islam of loyalty to
one’s nation.
As a result, Ahmadi Muslims in
Britain typically raise £400,000 a year
for British charities such as Marshal
Leukaemia and Lymphoma Research
and Macmillan Cancer Support, and set
a prime example of British Muslims
who actively contribute to the fabric of
British society.
Farhad Ahmad
Surbiton, Surrey, UK
Pension plan makes
GM look less enticing
Sir, The implied valuation of GM
(“General Motors: on the Buffett table”,
Lex, July 29) would certainly be
enticing if true. Not taken account of in
the analysis are several factors,
including the company’s vast pension
underfunding, which, while listed at
$24.1bn at fiscal year-end, is actually
closer to $29.4bn when more realistic
actuarial assumptions are utilised.
Additionally, the failure of GM to fund
the plan properly leads investors into
believing their cash flows and GAAP
results are higher than economic
reality would dictate. For instance, for
its last fiscal year, GM contributed just
$913m versus almost $7.5bn in benefit
So Walter the dentist now has at least
a sense of what it must have been like
to be Cecil the lion even if he will
make for a less impressive wall-
mounting.
The Minneapolis dentist who killed
the apparently beloved lion after it
was tricked out of its protected park
in Zimbabwe is now facing the full
fury of a public backlash for his
callous action, which has not only
upset most right-thinking people but
also disappointed Ricky Gervais.
Many will take pleasure in the
thought of the hunter being hunted.
We can imagine the reports. “Walter
was lured out of his protected practice
by small game hunters who tempted
him with reports of an inflamed
bicuspid. News of his disappearance
has shocked locals. Walter was much
respected in Minneapolis and was
described by colleagues as a very
loving dentist. We do not know what
happened — he was not wearing a
tracking collar and had left his Fitbit
at home, but investigators are trying
to pin down his last movements using
his find my iPhone service. The worry
is that even now he is adorning the
wall of some big cat’s den, next to a
cosmetic surgeon and two podiatrists.”
One does not have to succumb to
the almost Princess Diana-like
hysteria about a “loving” lion to be
appalled by the cruelty and cowardice
of a man who already has a conviction
for killing a black bear.
However, one wonders whether the
notion of Walter as the new poster boy
for the white hunter might have a
vision”, Tim Harford, July 30). From
then on he understood that the
potential gains to society from
technology depended on a monetary
and fiscal policy regime that permitted
adequate and stable aggregate demand.
For some 25 years after the war a policy
regime on these lines prevailed —
though one far from his ideal. It was
replaced by a regime wholly at odds
with his theoretical and practical
conclusions.
His later writings in his capacity as
a Treasury official in the war did
indicate that he still envisaged a time
when leisure increasingly replaced
work. But he could not foresee policy
into the future. Joan Robinson, his
Cambridge colleague, later remarked:
“The great trouble with Keynes was
that he was an idealist. He thought that
when people could understand his
payments. Such underfunding has
taken place each year post the IPO.
The upcoming end of federal pension
— MAP 21 — relief will only add to the
burden. In addition, GM’s periodic
pension cost, the amount shown on the
profit and loss, of just $151m is puny in
relation to the true liability and yearly
benefit obligations, while inflating both
GAAP income and commonly defined
cash flows.
Finally, GM’s financial subsidiaries
will require greater amounts of cash if
the company is to grow. During its
latest fiscal year, GM Financial saw its
accounts receivables grow by almost 14
per cent, or $3.9bn.
All in all, given these considerations,
GM’s cash flow to enterprise value is
closer to 8.4 times, rather than Lex’s 3
times. I would thus be quite surprised if
Warren Buffett made a play for the
entire enterprise.
Kenneth S Hackel
Alpine, NJ, US
Japanese communities
embracing biomass
Sir, Your analysis of the constraints
Japan faces in increasing the share of
renewables in its energy mix (FT.com,
July 28) made no mention of biomass,
despite using a chart showing that it is
predicted by the Japanese government
to account for as much 4.6 per cent of
Japan’s electricity mix by 2030, more
than wind and geothermal.
More than 4GW of capacity is
planned by 2030, supported by the
Japanese government through a 20-
year feed-in tariff. Currently Japan
imports much of its feed stock in
various forms including Indonesian
palm kernel shells and energy chips
from eastern Russia, but there is huge
potential for sustainable sourcing from
local forests, and predominantly using
timber from forest thinning. Some 67
per cent of Japan’s land area is made up
of forest, dwarfing Germany (32 per
cent), France (29 per cent) and the UK
(12 per cent). Moreover, biomass-
generating capacity is not limited as
solar is by the number of abandoned
golf courses, nor is it widely opposed
like geothermal; rather, it is embraced
by local rural communities finally
achieving security of supply on Japan’s
small islands.
Ingo de Buhr
Chief Executive,
PN Power Plants,
Düsseldorf, Germany
more beneficial impact than might
immediately be imagined. The idea of
the great white hunter conjures up
images of Clark Gable in Mogambo or
Allan Quartermain from King
Solomon’s Mines, men of courage who
pitted themselves against beast and
put themselves in harm’s way. It is this
notion of masculinity that attracts
other — how can we put it — less
obviously virile figures to the pursuit.
Today’s great white hunters are
more like the dregs of the old colonial
order, pampered tourists pouring
dollars into distressed or enfeebled
African economies and pilfering their
natural resources just as surely as if
they were extracting minerals.
Now, however, we have a new face
of the white hunter. He is no longer
Clark, the matinee idol; he is Walter
the dentist from Minneapolis.
Checking up on Corbynism
Britain’s opposition Labour party has
promised careful checks to stop entryists
joining the party to vote for the hard left
candidate for leader, Jeremy Corbyn.
Hello, I’m calling on behalf of the
Labour party about your application
to join and to welcome you to the
fastest growing political movement
outside Scotland.
Now, as we are in the middle of a
leadership contest, we are just doing a
few checks on new members before
we issue them with a ballot paper.
First question: Did you actually vote
Labour at the last election. You did?
Really? That’s fantastic, we don’t find
Friday 31 July 2015
Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com
theory, could understand how the
capitalistic system actually works, they
would behave in a reasonable manner
and operate the system in such a way
as to produce favourable results, to
produce a high and stable level of
employment . . . ” (recorded in
Richard Kahn’s The Making of The
General Theory, Cambridge University
Press, 1984).
We simply do not know how his early
predictions would have fared had
people “behaved in a reasonable
manner”, but it is hardly of the greatest
importance. The dismissal of Keynes’s
doctrine may have implications for
society that go far beyond matters
of leisure.
Geoff Tily
Senior Economist,
Economics and Social Affairs Dept,
TUC
In fact, Cameron could
lawfully send troops
into the Cayman Islands
Sir, According to Jonathan Quarmby
of law firm Stephenson Harwood,
the UK prime minister “does not have
the power to force Cayman, Panama
and various other jurisdictions to
publish data on the ultimate beneficial
owners of companies incorporated
in those jurisdictions” (“Doubts grow
over property transparency pledge”,
July 29).
Really? The Cayman Islands are a
British Overseas Territory. It is
parliament that has decided it can be a
secretive tax haven, and parliament
that could change its mind about that.
The UK could lawfully send in the
troops, if it came to it. That is not true
for Panama.
Trevor Pateman
Brighton, UK
The Nikkei has no letters
column, so I write to you
Sir, I am a regular reader of both the
Nikkei, Japan’s business daily, and the
Financial Times. Last week, the Nikkei
devoted a disproportionately sizeable
space to its acquisition of the FT.
Understandably it is the largest
transaction the Nikkei has undertaken
domestically and internationally, but
I was somewhat perplexed to find that
the articles were not written with its
customary uncompromising
inquisitiveness.
I wanted to write to the Nikkei, but
as the Nikkei does not carry a readers’
page, I decided to send a letter to the
FT instead.
Kazuo Mike Fujisawa
Tokyo, Japan
An EU directive and
the price(s) of the FT
Sir, Your front page report “Disneyland
Paris faces probe on prices paid by
foreigners” (July 29) contends that the
EU services directive bans forcing
consumers to pay more because of
their country of residence.
This contrasts nicely with the
prices of your newspaper in different
EU locations, ranging from €3.50
to €6.99, which are listed on the
same page.
Lucas Bouwhuis
Utrecht, The Netherlands
many like you these days.
OK, next: Are you or have you ever
been a communist? That’s just a little
joke to break the ice . . . you aren’t
though are you? Oh good, we used to
have quite a few of them and they
were a terrible nuisance. Kept banging
on about the workers and absolutely
no sense of humour.
Right. Are you or have you ever
been a Conservative? That’s not quite
as serious but it is frowned upon.
You’ve never tried to open a free
school have you? That’s a real no-no
for us. And you weren’t ever at college
with David Cameron. We have to ask.
Next: Do you have any posters of
Che Guevara in your room? Oh well, at
least it’s not Russell Brand. But if you
are with us for the long haul, we
suggest Obama “Hope” posters — or
maybe something with Miles Davis.
Do you hate the rich? Ah no sorry,
the line is that you don’t believe in the
politics of envy, you just want a fairer
distribution of wealth. Mention
Piketty if you like.
OK next question: Do you consider
America to be the greatest threat to
world peace? Oh dear, I’m afraid that’s
a third rail question. The correct
answer is we believe in a candid
friendship. What’s that? You’ll know
better when you try again.
Last question: Do you actually want
Labour to win the next election or are
you happy in opposition? That’s fine.
Take as long as you like. Looks like
we’re going to be here a while.
robert.shrimsley@ft.com
Friday 31 July 2015
The land of free markets, tied down by red tape
FINANCE
Gillian
Tett
E
very nation needs a unifying
idea. Americans love to see
themselves as champions of
free markets and entrepre-
neurial zeal — and have long
been more welcoming to entrepreneurs
than has most of the western world.
But the 2008 financial crisis tarnished
America’s self-image (with, for exam-
ple, the eyesore of state support for
mortgages). The entrepreneurial halo is
starting to slip, too, since increasing
quantities of red tape are making life
harder for start-ups, relative both to the
past and to the rest of the world.
Take a look at a striking report issued
by the White House this week on occu-
pational licensing, the rules that force
workers to obtain qualifications to do
certain jobs. Five decades ago, occupa-
tional licences were required only in
The Calais
migrants are
Europe’s shame
GLOBAL POLITICS
Philip
Stephens
T
he migrant crisis at Calais is
a story of human misery,
war-torn and broken states
and European denial. It
speaks to a world in which
advanced nations have lost the will, and
some of the capacity, to prevent and
resolve conflicts. Their politicians will
not find an answer by drafting in more
police or building higher fences.
An estimated 5,000 people are
camped, in dreadful conditions, around
the French ferry port and its entrance to
the cross-Channel tunnel. The numbers
have been rising through the year. So
has the desperation of the migrants to
make it across the 21-mile sliver of sea
that separates France from Britain.
The governments of the two counties
have spent tens of millions of euros
on security measures to prevent the
migrants from clambering on to trucks
and trains. The effort, predictably, has
been futile. This is what happens when
policymakers opt to treat symptoms
rather than causes.
Calais is the end of a funnel that has
seen tens of thousands of migrants flee-
ing war and destitution in the Maghreb
and beyond. Some are what politicians
disdainfully call “economic migrants” —
Overcrowding — not lurid exploits — is what will kill the Lords
OPINION
Julian
Grenfell
T
he image of the House of
Lords has taken a battering
this week. The unaccepta-
ble behaviour of a senior
member has played into the
hands of those who insist the Lords is
just a bunch of elderly toffs in matching
crimson gear on a lifetime jolly courtesy
of the taxpayer. And yet it is arguably
the hardest-working, most effective and
best value for money parliamentary
revising chamber anywhere. Recently
armed to deal very robustly with mem-
bers who flout its rules or otherwise
bring the House into disrepute, it can, I
am convinced, survive the occasional
scandal, however wounding. What it
might not survive is the hyperinflation
of its membership.
When I first sat as a working Labour
peer in 1996 it seemed far less crowded,
despite its membership topping 1,000,
specialist arenas such as nursing. But, in
recent years they have proliferated so
dramatically that a quarter of all Ameri-
can workers must secure one from indi-
vidual states. Sometimes this is justi-
fied: airline pilots need licences. But
often, as in the three years of training
needed to become a security guard in
Michigan or the thousands of hours
required for hairdressers in Utah, the
rationale is less clear.
The process of securing these licences
is often so costly and cumbersome that
one recent study estimated costs for
consumers at $200bn a year. More
importantly, licences deter many
would-be workers — and entrepreneurs.
A separate World Bank report is even
more sobering. Last year it ranked
countries according to their levels of
support for the corporate world. This
placed America in seventh place in
terms of overall ease of doing business.
But the US was ranked 46th — yes, 46th
— in terms of how easy it is to start a
company. This is worse than Estonia,
Malaysia, Georgia and even France.
One important reason for this dismal
position is that in America entrepre-
as if it is somehow reprehensible to seek
an escape route from poverty and worse
— but the largest portion are the victims
of war. Syrians head the list, followed by
Eritreans, Somalis, Iraqis and Afghans.
What unites them is a belief that any
risk — trekking thousands of miles
across Turkey and the Balkans, drown-
ing in the Mediterranean, falling under a
truck or a train at Calais — is small meas-
ured against the dangers at home.
There is nothing new about large
movements of displaced people. In
recent memory, Europe has managed
the influx of refugees from the former
Yugoslavia as well as those from seem-
ingly never-ending conflicts in Somalia
and Afghanistan. What has changed —
and this was a point eloquently made by
António Guterres, the UN High Com-
missioner for Refugees, when he gave
the Ditchley Foundation annual lecture
this month — is the spread and persist-
ence of conflicts in failed and failing
states. The pendulum in advanced
nations has swung from liberal inter-
ventionism to furtive inaction.
Mr Guterres observed that five years
ago an estimated 11,000 people were
fleeing war every day. By last year the
figure had quadrupled to more than
42,000. Of these roughly two-thirds
were internally displaced, but the
remainder were forced to seek refuge
abroad. The contrast he drew was with
the 1990s. Then, albeit sometimes after
much hesitation, rich nations acted — in
Bosnia and Kosovo, Sierra Leone and
East Timor. Now, whether it is South
Sudan, the Central African Republic or
since many hereditary peers rarely
appeared. Since the 1999 reform, which
removed all but 92 of the hereditaries,
most peers aim to attend most of the
time as working members.
In principle, that is good. In practice,
with now nearly 800 members, there
are strains on space, facilities and work
opportunities. Why anyway do we need
a Lords with over 100 more members
than the House of Commons? With
David Cameron, the prime minister,
poised to tip another 20 or 30 members
into the chamber in his search for a gov-
ernment majority there, the House risks
becoming a laughing stock. Laughing
stocks invite abolition, and I, for one, do
not want that. So what should be done?
In March 2014, a group of Labour
peers, which I co-chaired, presented to
the party the fruits of its year-long
inquiry into the future of the Lords and
its place in a wider constitution. The
House broadly welcomed its conclu-
sions, in part because we deliberately
did not address the issue of whether a
reformed House should remain
appointed, or be partially or wholly
elected. The question of composition is
★ FINANCIAL TIMES
Comment
neurs need, on average, to navigate six
different legal and regulatory hurdles to
start a company. In New Zealand and
Canada, which top the league, there
is just one procedure. The complexity
faced by Americans means that it
takes them on average about six days
to create a start-up; in many other
countries the process is much faster
and cheaper.
Some of America’s abundant
paperwork is justified: pilots
need licences. But often the
rationale is less clear
Of course, this World Bank league
does not tell the whole tale. The Ameri-
can national average conceals signifi-
cant geographical variations because it
is municipalities that set many of the
business rules. Thus research by
Thumbtack, a West Coast website that
connects consumers with local busi-
nesses, and the pro-entrepreneurship
Kauffman Foundation shows that it is
Syria, the chosen posture is quiescence.
Ten years ago the UNHCR helped a mil-
lion people a year return to former con-
flict zones restored to stability. By 2014
the number had fallen to 126,000.
For all the panic generated by the
5,000 camped in the so-called “jungle”
at Calais, Europe has been only slightly
touched. Running scared of the populist
right, politicians have lost a sense of pro-
portion. An estimated 150,000 people
have crossed the Mediterranean and
Aegean in the first half of this year. That
is much more than in 2014, but it is to be
measured against a population for the
28-nation EU of about 500m; and it
remains a small fraction of the 4m who
have fled the civil war in Syria. Up to 2m
Syrians have fled to Turkey and, as Mr
Guterres noted, fully one-third of the
The pretence that
fences are an answer pours
fuel on to the fires of
anti-immigrant populism
hugely divisive and, in our view, is a
matter to be considered by a broadly
based constitutional convention, which
we duly called for. The coalition’s earlier
“Clegg bill”, focusing on composition,
was abandoned for good cause. You can-
not attempt a reasoned reform of the
Lords divorced from a reform of our sys-
tem of governance as a whole. With the
UK seemingly edging towards a more
Far from being a bunch of
elderly toffs in crimson, it is
the most effective revising
chamber anywhere
federal constitutional settlement, and
with our future relationship with the EU
uncertain, putting carts before horses is
a recipe for failure.
That said, one should not shy away
from modest incremental reforms that
can enhance the Lords’ already admira-
ble capacity to scrutinise, revise and
hold the government to account. That is
why we made recommendations on a
much easier to start a company in Texas
than, say, California. Moreover, red tape
is only one factor that determines
start-up activity; what also matters is
whether there is access to capital and
a culture of respect for entrepreneurs.
Nevertheless the data represent pol-
icy challenge — doubly so since data
from the Kauffman also show that the
rate of new business creation today is
“well below historical trends”, even
though it rose this year (after several
years of decline).
The White House has attempted to
respond to the problem: this week Presi-
dent Barack Obama urged states to
reduce the number of occupational
licences. Last month, he launched a
“Start Up In a Day” initiative to slash the
length of time it takes to create a busi-
ness; it is offering a $1.5m prize to any-
one who uses technology to streamline
the process.
It is clear that far more needs to be
done, however. One idea that policy-
makers ought to discuss is whether it is
time to introduce a “sunset” principal
for business regulations — an assump-
tion that regulations should automati-
population of Lebanon now comprises
Syrian or Palestinian refugees.
European governments argue about
how to share out the “burden” of 40,000
asylum seekers — most of them young
men, many highly skilled and all eager
for work as well as sanctuary. Germany
and Sweden, two nations more open
than most to the migrants, will profit
from their generosity.
It should be obvious that individual
states cannot go it alone. Barriers are
being thrown up by nations across the
continent. At very best they simply
divert the problem. There are some in
Britain who blame Europe for the crisis.
These eurosceptics claim that by leaving
the EU, Britain could reclaim control of
its borders. The Calais crisis points pre-
cisely in the opposite direction. Without
French co-operation David Cameron’s
government would be powerless.
Europe’s problem is Britain’s problem,
and vice versa.
The pretence that fences are an
answer pours fuel on to the fires of anti-
immigrant populism. Voters are less
worried by numbers than by the sense
range of issues, among them size, meth-
ods of appointment, attendance
requirements, political balance, proce-
dural reforms and better working prac-
tices. None of these would cut across the
mandate of an eventual constitutional
convention. Two other issues on which
we made recommendations — retire-
ment and disqualification — were con-
currently addressed in a successful pri-
vate member’s bill. Clearly there is
broad support for incremental reforms
in advance of any constitutional con-
vention. A consensus on the proper role
and powers of the Lords in a wider con-
stitution would then make possible a
determination on its composition.
We need a Lords smaller than the
Commons, reduced over time to 450,
with real territorial, gender, age and
faith diversity. As a revising chamber, it
must be a “think again” rather than a
“yield or we veto” House, as we put it,
fully accepting Commons primacy. The
power to make governments rethink on
a rather wider range of legislative pro-
posals would be a fair quid pro quo for
reducing the Lords’ blocking powers to a
minimum. Further, as essentially a
cally expire after a given period unless
specifically renewed.
This concept flies in the face of cur-
rent practice, which tends to leave rules
on the books unless they are deliber-
ately repealed. And sunset comes with
drawbacks: renegotiating regulations
can introduce business uncertainty and
endless lobbying fights.
But some policymakers are talking
seriously about the idea. Indeed one
congressman, Chris Collins, introduced
a bill this week calling for a seven-year
sunset approach. The concept needs to
be discussed, if nothing else because it
might start a proper conversation about
which start-up rules — and occupational
licences — are worth keeping and which
are not, and how to stop the sprawl of
red tape.
Who knows? In a country that wor-
ships the ideal of the plucky start-up, a
campaign to slash red tape could be one
of the few things that all the presidential
candidates actually agree on. Even (or
especially) that arch entrepreneur him-
self, Donald Trump.
gillian.tett@ft.com
that governments have lost control. One
answer is to replace the Calais jungle
with Europe-wide centres to document
the refugees and, if necessary, return
illegal migrants to their home nations.
If genuine asylum seekers are to be
persuaded not to risk life and limb
crossing the Mediterranean or the
Channel, EU governments must also
offer legitimate routes to settlement. As
for domestic public opinion, the politi-
cians should have learnt by now that
chaos fuels fear; fair, effective manage-
ment provides reassurance.
The world has changed. The relative
power of Europe has slipped still faster
than that of the US, and with it the
capacity to fix problems in its neigh-
bourhood. That is not to say it can abdi-
cate responsibility. The EU still has the
tools — economic, political and military
— to promote order beyond its borders,
sometimes on its own, more often as a
convening power. The Calais crisis is just
one more a lesson in the costs of hiding
under the bedcovers.
philip.stephens@ft.com
revising chamber, it should cease to ape
the Commons’ complex and often
arcane legislative procedures and
instead streamline its own.
I believe in an appointed chamber,
not just because it opens the door to
much-needed expertise, but primarily
because a fully or partially elected
House would demand more powers.
Many favouring election seem reluctant
to recognise this threat to the Commons,
being too busy questioning the legiti-
macy of an appointed Lords. But where
an appointed Lords secures by persua-
sion improvements in legislation it is
performing a duty of huge constitu-
tional importance. Therein lies its legiti-
macy, and in its recognition that the
Commons has the last word lies its
accountability. Retirement has afforded
me time to reflect, but my views remain
unaltered. The highly effective work
being undertaken by the Lords is essen-
tial to good governance. Don’t let over-
crowding wreck it.
The writer, a former deputy speaker of the
House of Lords, was the first peer to retire
permanently under new legislation
11
To prevent
Brexit, Cameron
must stand up
to the eurozone
OPINION
Charles
Grant
C
an Britain, a country that
plans to keep its own cur-
rency, feel comfortable in an
EU that is increasingly
focused on the euro and its
troubles? As David Cameron’s govern-
ment starts negotiations with its part-
ners on the terms of Britain’s member-
ship before an in-or-out referendum,
this question is becoming a priority for
the UK. Arguments over EU migrants’
access to benefits will generate more
political heat, but the relationship
between the eurozone and the wider EU
is a vital point for senior figures in the
government, including George Osborne,
chancellor of the exchequer. It is also a
big concern for British business leaders.
Their worry is that the 19 euro coun-
tries could create a caucus and impose
their wishes on the 28-country single
market. Euro members can do so since
voting rules introduced last year gave
them a “qualified majority” in the Coun-
cil of Ministers, the EU’s most important
decision-making body. The City of Lon-
don is of particular British concern:
countries that know little about banking
— or which seek to favour their own
financial centres — could vote for rules
that harm its competitiveness.
So the UK wants “safeguards” for the
single market. Its problem is that not
many EU governments are sympa-
thetic. In Berlin, the capital that matters
most, few figures other than Wolfgang
Schäuble, finance minister, appreciate
British concerns. Germans officials
argue that eurozone countries do not
operate as a caucus — because they sel-
dom agree on economic policy. The UK
The City is of particular
concern — other countries
could vote for rules that
harm its competitiveness
responds that, as the eurozone inte-
grates, the risk is growing ever greater.
When the EU drew up rules on bank-
ing supervision in 2012, it established
“double majority voting”: decisions
require a majority of both euro and non-
euro countries. But the Germans insist
this should not apply in other areas,
since the system would — as more EU
countries joined the euro — evolve into a
British veto. Many Germans suspect the
safeguard Mr Cameron really wants is a
veto for the City on financial rules. In
fact, he will not ask for that. But German
fears are fuelled by memories of the
debacle of December 2011: Mr Cameron
said he would not sign the “fiscal com-
pact” that Germany wanted without an
agreement to change some voting rules
affecting the City; the Germans blocked
the changes so he did not sign.
The recent furore over the European
Financial Stability Mechanism has rein-
forced British worries. The eurozone
wanted this fund, to which Britain has
contributed, to make an urgent bridging
loan to Greece — despite an earlier Euro-
pean Council decision that it should not
be used for eurozone bailouts. The EU
can decide to use the fund by qualified
majority vote. Knowing that it could not
veto the loan, the UK voted in favour, in
return for guarantees against potential
losses. To British officials, this is a clear
example of a eurozone caucus: in a cri-
sis, its members will put the currency’s
needs ahead of legal niceties or the
interests of those that do not belong to
the euro.
Mr Osborne will press hard for safe-
guards. What could he ask for that
might be acceptable to other govern-
ments and EU institutions? Perhaps the
promise of a treaty article stating noth-
ing done by the eurozone may damage
the single market. The non-euro nations
could gain the right to observe meetings
of eurozone ministers. They could also
be allowed to press an “emergency
brake”: if one of them thought a euro-
zone decision would damage the mar-
ket, the decision would be postponed
for, say, a year, while the European
Council of leaders reviewed it.
The UK government has not yet con-
vinced many of its partners that its con-
cerns about the relationship between
the euro and the single market are justi-
fied. It will need to do a better job if it
wants to win credible safeguards. Other-
wise British voters may conclude the EU
is not driven by the interests of all its
members, but by those of the eurozone.
The writer is director of the Centre for
European Reform
12
Fighting talk on winning new viewers
WORKING LIVES
Emma
Jacobs
Fans’ habits are changing,
says boxing promoter
Frank Warren, and
he wants matches to
reach a wider audience
B
oxing is “an anxious busi-
ness” so there is “no use get-
ting anxious about it”. This is
the verdict of Frank Warren,
the boxing promoter and
manager who has looked after most of
the big names in British boxing:
“Prince” Naseem Hamed, Nigel Benn
and Ricky Hatton. “You can build a
fighter who becomes a real star and one
punch can change that.”
If Mr Warren, immaculately dressed
in a blue suit, seems zen about such vol-
atility, the 63-year-old has been through
worse: surviving a shooting as well as
huge business setbacks. Interviewer-
turned-friend Lynn Barber has written
of him: “I can’t think of anyone who has
had such high highs and low lows,
including disasters that would have
sunk anyone with less determination.”
Today, we are sitting on the veranda of
the Goring hotel in the high-end neigh-
bourhood of Belgravia, central London,
with his 28-year-old son, George (the
fourth of his six children). The pair are
outlining their plans for BoxNation, the
boxing television channel, launched in
2011, which is available on TV in UK
and globally online and through mobile
phone apps. It creates and broadcasts
boxing content, including live and
A yacht rental start-up ventures beyond Greek headwinds
Incrediblue views vessels
as underused assets,
writes Snezana Curcic
A disastrous sailing holiday around the
Aegean Islands three years ago was a
turning point for Greek entrepreneur
Antonios Fiorakis. He and his friends
ended up on a smaller catamaran than
they had agreed to hire and were left
buffeted by challenging summer winds,
with inadequate guidance.
Mr Fiorakis reasoned that he could
do a better job as a middleman and this
impulse eventually led to the creation
of Incrediblue, an online marketplace
connecting yacht owners with those
looking to charter a vessel.
The business, one of a surprising
number of start-ups to have battled
through the Hellenic economic mael-
strom, has echoes of “sharing econ-
omy” pioneers Airbnb and Uber.
Mr Fiorakis certainly sees yachts as
underused resources. “Take a stroll
around any marina and you’ll see they
are packed with boats that always seem
to be docked. They are like these won-
archived footage, and sells the rights. It
promotes and manages a stable of more
than 40 boxers, overseen by Mr War-
ren’s Queensberry Promotions, provid-
ing material to screen in programmes.
George is admiring but not deferen-
tial. There is no one, he says, that can
guide a boxer’s career better than his
dad. “The fundamental core of our busi-
ness has always got to be about the box-
ers . . . Our customers want to see box-
ers win world titles.”
The father and son team insist this
year’s Mayweather-Pacquiao fight
proved the global audience for boxing,
despite the fact that many fans were let
down by the fight itself. “It was always
about two stars,” says Mr Warren.
Fans view content in different ways
today, they say, for example, on mobile
phones rather than televisions. “Things
have changed so much,” says Mr War-
ren. “Netflix has crashed down the
doors of how people consume and watch
movies; iTunes completely blasted the
music business apart but got to a bigger
audience. That’s where we need to get
to.” They are looking at all kinds of dis-
tribution, and are interested in Spotify’s
music streaming model, although they
decline to spell out how this might work.
BoxNation lost a bidding war for
the rights to screen the Mayweather-
Pacquiao fight in the UK, that they
hoped would boost subscriptions. The
winner, Sky Sports charged up to £24.95
to view the fight.
“Who’s to say that you need to charge
£10 or £15 or £20 [to view a fight]. Why
‘Who’s to say that
you need to charge
£10 [to view a fight].
Why can’t you
charge nothing?’
derful toys but very time-consuming
and expensive to run and maintain.”
The portal allows users to choose a
holiday or charter a boat based on
price, location, availability and user
reviews. A skipper is always included.
Fees range from €50 to €1,000 per
person per day depending on the craft.
Mr Fiorakis says the company under-
cuts established players on commis-
sion, charging 15 per cent rather than
up to 40 per cent. Boat owners can list
their vessels after emailing their owner-
ship documentation. They have a
chance to do business directly with a
broad range of customers as opposed to
only experienced sailors.
So far, the portal has more than 2,000
yachts, catamarans and motor boats
listed and moored across the Mediter-
ranean, in Greece, Turkey, Croatia and
Spain. The company is looking to
expand into Italy and Montenegro.
Greece’s well-chronicled economic
crisis has seen the demise of many busi-
nesses, a sharp rise in unemployment
and an inevitable brain drain.
Against this grim background several
hundred start-up companies have
emerged in the country as their
★ FINANCIAL TIMES
BUSINESS LIFE
can’t you charge $1?” asks George. Why
charge anything at all, I ask? George
nods, adding: “Why can’t you charge
nothing and do advertising?”
This is fighting talk. In the last finan-
cial year, BoxNation, which has 120,000
regular subscribers, made a loss, despite
revenues of £15.6m. This, they say, was
primarily due to investing in technol-
ogy. It is also the reason that they
decided not to press ahead with a float,
explored in 2013. Gareth Jones, the dep-
uty chairman, speaking by telephone,
says: “It was too early.” Expansion, they
say, is in the emerging markets, particu-
larly eastern Europe and Asia, both for
talent and audiences.
Mr Warren never wanted his children
to follow him into boxing. (His son,
Francis, also works for the business.)
“No, absolutely not, not my area, not
into boxing, I really didn’t . . . I wanted
my kids to do something else but they’re
boxing nuts.”
A great deal of Mr Warren’s decision-
making, he says, is based on “gut feel-
ing”. So too with discovering boxing tal-
ent. “I feel that person’s got something
about them . . . You’ve got to look at
what they’re not good at and what needs
to be done, getting the right team
around them . . . making the right move
at the right time.”
The son of a bookmaker and house-
wife, Mr Warren left his grammar
school, in Islington, north London, at
the age of 15. “I did very well at
school . . . then I went off in
a different direc-
tion . . . I lost inter-
est.” One of his first
jobs was at a solici-
tor. “I worked there
for about a month.
It absolutely did my
head in . . . I just felt like I was
enclosed.” After a stint at Smithfields
meat market he worked for himself.
My questions about his move into a
boxing career start off on the wrong
founders, Mr Fiorakis among them,
ventured that a crisis of such magnitude
could in fact create opportunities for
ideas to develop.
Like-minded Greek venture capital
firms have offered help. One is the pri-
vate Athens-based Jeremie Openfund
II, which has invested in Incrediblue,
and other companies focusing on soft-
ware and the web.
Aristos Doxiadis, a partner in the
fund, explains that many Greeks have
been forced to move away from the
traditional way of looking for safe
Taking the jobs in the public sector or family busi-
plunge in spite ness. Opportunities instead exist in
of the crisis fast-moving and changeable economic
Like father, like foot when I ask if it was right that he
son: George, 28, fixed his first fight for his second cousin.
followed Frank’s “Didn’t fix it,” says Mr Warren,
lead into the appalled. I explain I meant organising
business, and
below, the boxer
rather than rigging. “We’re a little bit
sensitive to that one,” he laughs. It leads
Emmanuel on to my next question: is boxing a
‘Manny’ murky business? “It’s much cleaner
Pacquiao than Fifa.” Most things are, I offer.
Charlie Bibby
His reply is that boxing is cleaner than
sports including football, cricket,
horseracing, athletics and cycling. He
clarifies: “Everything’s so open to the
media, if there’s anything murky or
crooked in boxing, certainly in this
country, it would be grabbed.”
When he decided to make a go of box-
ing, he became determined to give it
everything he had. “Sometimes I just
put the blinkers on.” This has some-
times been to the detriment of his per-
sonal life. “It’s not a nine-to-five job.”
The most dramatic personal event
was when Mr Warren was shot at close
range by a masked gunman in 1989.
Terry Marsh, one of his former boxers,
was prosecuted but later acquitted. The
overriding feeling was anger. “It didn’t
wreck my confidence. I was angry, very.
I was angry that I got shot.”
It hit his business. A deal to raise
funds for the London Arena in Dock-
lands — in which he held a 70 per cent
stake — fell apart. Banks, he says, did
not want to do business with a man who
had been shot. The east London venue
later went into administration. It took a
long time to recover financially, he says.
Mr Warren has a reputation for issu-
ing writs against journalists. Why does
he do that?
“When I was a kid I would never be
frightened of anybody, I would never let
anybody bully me and if they did I
would react to it.” So too with news-
papers. “If I do something wrong I’m
accountable for it.”
emma.jacobs@ft.com
Twitter: @emmavj
conditions where businesses are able to
quickly adapt their models. “The shock
and depth of the crisis has led to the
total collapse of the internal market in
Greece — meaning the only viable
option is to go international, especially
with digital goods and services,” he says.
Incrediblue is now a UK-registered
enterprise, with 17 mostly Greek
employees in total. It runs its business,
customer service and development
divisions from Greece, while marketing
and sales are driven from London.
According to market researcher
Future Market Insights, last year the
global yacht charter market was valued
at $35bn and is expected to grow to
$51bn by 2020.
Mr Fiorakis says the market is clut-
tered and competition is fierce. His
company has a long way to go but is
trying hard to make a mark with its dif-
ferent business model focusing on skip-
pers as well as boats.
“We aim to match the right local skip-
per to a particular party boat. If you are
a group of young people in their twen-
ties we won’t assign a skipper in their
fifties, otherwise it will be like going on
a holiday with your parents,” he says.
Personal technology
Windows 10
Microsoft goes back to basics
with its new operating system
RICHARD WATERS
It feels a little disconcerting
when your laptop wants to
get personal and tries to
anticipate your needs.
Vaguely presumptuous
even, in the manner of a
slightly overattentive
neighbour who stops just
short of intrusiveness.
There was the moment with
the new Windows 10
operating system, for
instance, when I hit the
wrong key and a box
popped up with an ethereal,
rotating blue disk and the
words: “Need anything,
Richard? Tell me to go
ahead and do something.”
Then there are the
prompts to download apps
from a new Windows app
store, and the smartphone-
like notifications that pop in
from the right side of the
screen. Twice the machine
dug up details of an old
Microsoft email account it
was eager for me to update.
Engagingly attentive
But if Windows 10 risks
being creepy, even vaguely
sinister, the feeling passes.
This is a piece of software
that wants to have a deeper
relationship with you than
the PC you’re used to. After
living with it for several
days, the attentiveness
becomes engaging.
It is also a return to basics.
With Windows 10, Microsoft
has stepped back from its
touchscreen-centric
predecessor, dubbed 8 (it
seems 9 fell through the
cracks). The result is a PC
operating system that is
designed to be, first and
foremost, fast, elegant and
efficient. A rapid boot time
and a new browser that has
the clean design and speed
to match browsers from
Google and Apple are
among the features that
improve the experience.
Three years ago,
Microsoft’s first attempt at
marrying touchscreen
tablets with the PC led
Apple’s chief executive Tim
Cook to observe that, just
because you could combine
a fridge and a toaster in one
appliance, it didn’t mean you
should. Windows 8 was a
step too far for PC users,
who found its unfamiliar grid
of coloured tiles off-putting.
It would be interesting to
hear what he has to say now.
Useful features
Windows keeps elements
from the smartphone and
tablet world — the app
store, notifications and large
coloured tiles that act as
icons — but integrates them
much more smoothly into
the familiar PC experience.
There are discordant
notes, certainly: switch
between a PC screen with
multiple windows open, and
“tablet mode” with its more
basic single view of an app,
and it takes a moment to
work out what happened to
all the other things you were
working on. Stretching a
single operating system to
cover all devices is bound to
throw up moments like this.
But at least on the device
Opening Windows: New
system feels coherent
Friday 31 July 2015
I tested — a laptop with a
touchscreen — the product
felt thoroughly coherent.
The focal point of the new
Windows is the start menu
— what you see when you
click the Windows icon at
the bottom left of the
screen. Microsoft makes
much more use of this real
estate, letting users expand
it with Windows 8-style tiles
and turning it into a shop
window for the app store.
You’ll find yourself starting
most tasks here rather than
on the desktop, which
becomes dead space.
A search box activates
Cortana, the “virtual
assistant” represented by
the spinning blue disc. Or
you can click on a
microphone icon and speak
your instructions: in my
tests the voice recognition
was surprisingly good.
Cortana feeds you news and
other information and tries
to learn what you’re
interested in — and she is
always ready with a
suggestion of what to ask.
It’s tempting to think of
Clippy, the annoying paper
clip helper that used to
appear in Office. But besides
a better design and more
engaging “personality”,
Cortana is far more versatile.
Among other things, you
can issue voice instructions
A new browser
has the clean
design and
speed to
match others
to Cortana to give you
reminders. She can also
perform voice searches
using Microsoft’s Bing and
start an email in Microsoft’s
email service.
Broadening the appeal
This is all fine but it does
raise one important
question: what if you don’t
want to live in Microsoft’s
universe? Windows 10 can
feel like a conduit for the
company’s services, which
include its integration with
Xbox Live and the OneDrive
cloud storage service. You
don’t need to be all-in on
Microsoft services to get a
lot out of Windows 10, but it
enhances the experience.
In theory, others could
produce apps with the
ability to integrate with
Cortana. But will they, and
will many app makers even
put their software in the new
Windows app store?
If they turn a cold
shoulder, as they did with
the Windows phone store
before, Windows 10 will miss
much of its potential
consumer appeal.
Verdict
These things are outside
Microsoft’s control. But at
least, in Windows 10, it has
come up with an appropriate
synthesis of the old, in the
form of the PC, and the new,
in the form of tablets and
smartphones.
Windows 7 and 8
customers can upgrade free
of charge starting this week.
Microsoft has said it will
stagger the upgrades to
make sure the process goes
smoothly. To get the most
out of the software, though,
requires a touchscreen,
which for many will mean
buying a new machine —
and PC makers still pay
Microsoft for the software.
Friday 31 July 2015 ★ FINANCIAL TIMES 13

ARTS

Fantastic nonsense of a mission implausible C L A S S I CA L M U S I C

BBC National Orchestra of Wales

BBC Proms, Royal Albert Hall, London
aaaee
FILM Richard Fairman

Nigel It is said that as many as 50m children in

China are learning the piano, each hop-
Andrews ing to follow Lang Lang on the road to
glory.Composersandconductorsarenot
so plentiful, and for them the path to rec-
ognition in the west may be more diffi-

T
oday is the day the IMF’s
luck runs out,” says some-
one in Mission: Impossible
— Rogue Nation. Sounds
like a case for the Financial
Times. But only those estranged from
Planet Tinseltown will think it’s Chris-
tine Lagarde in crisis rather than Ethan
Hunt, alias Tom Cruise. In the block-
buster summer’s first major raid on our
wits and wallets — sequel codename
“MI5” (and the British connotation
proves apt) — the Impossible Missions
Force puts its lives on the line to combat
The Syndicate, a group of global agents/
spies gone terrorist.
The Syndicate’s present profile: world-
domination nutjobs putting out a con-
tract on, among others, the Austrian
chancellor and British prime minister.
Team Cruise starts its operation, accord-
ingly, by storming the Vienna Opera
House during a VIP performance of
Turandot. “None shall sleep,” sings the
tenor and he is on the nose. Writer-
director Christopher McQuarrie (who
scripted The Usual Suspects) has caught
Brian De Palma Disease: a form of cine-
matic ADHD in which nothing stands
still, madness is licensed, and action/
suspense showdowns are screwed to the
screaming orgigglingpoint.
After Vienna we get a car and motor-
cycle chase through downtown Casa-
blanca; high-wire escape ballets between
skyscrapers; and fog, murder and red
telephone boxes in a London so
headlong-retro we expect Jack the
Ripper to appear. Add dialogue so
Duchamp-surreal it sounds like an
Exquisite Corpse game of wordplay. “Sir,
Ethan Hunt is the living manifestation of
destiny.” (What does that mean? Should
we,need wecare?)
It’s all fantastic nonsense. If you
stepped back, you might see the film and
its story plausibility collapse like a
Immersive: Tom Cruise palace of cards. McQuarrie’s trick is to
in ‘Mission: Impossible — stopyousteppingback.Inthissurround-
Rogue Nation’. Below sensation world you might step into a
right: ‘Iris’ is a gun, a bomb, an oubliette or a parallel
documentary portrait of dimension. For the confessional record
New York fashion guru I spent the first half hour wearing
Iris Apfel 3D glasses (available on a foyer stand)
since I thought the film was in 3D as
well as Imax. It isn’t. But I didn’t notice
until I glanced round belatedly at un-
spectacled colleagues. That’s how
immersive MIRN is. You believe it’s all
round you and all over you even when,
technically,itisn’t.
Mission: Impossible — A classic comes to life again, restored
Rogue Nation (12A) and re-scored, in Dziga Vertov’s Man
Christopher McQuarrie with a Movie Camera. The 1929 Soviet
AAAAE film recently voted best documentary of
alltime(inBritishfilmperiodicalSight&
Man with a Movie Sound) isn’t quite a documentary at all.
Camera (U) It’s a firework show in a moviemaker’s
Dziga Vertov mind: a symphonic montage of a “day in
AAAAA the life a nation”, across three cities, that
bursts, crackles, fizzes and could take
Iris (12A) your eye out (you almost feel) if you
Albert Maysles don’tdodgeandweave.
AAEEE A tripod-wielding camera buff in
boots and riding breeches — proper togs
for an auteur back then — is our halluci-
natory creative Everyman. Trick effects
giantise him atop a roof or miniaturise
him in a bubbling glass of beer. He
mounts a speeding truck to hand-crank
film of joyriders in a car. He scales cranes
or towers. He vanishes altogether, much
of the time, to leave the screen to his
feveredkaleidoscopes.
If you think Inception invented the
bent-double cityscape, think again. If
you think Jaws invented the teeming,
telephoto-shimmered holiday beach-
scape, re-think again. Also here: facto-
ries, taverns, picture theatres, none stay-
ing still for long before disbursing some
secret, mischievous visual reality. Multi-
ple exposure and fast cutting turn rush-
hour traffic into a poetic pandemonium.
And sometimes the film slows to twirl
disparate facets like a magic goblet,
flashing successive pictures — a shop
window, a face, a gloved hand, a manne-
quin — to tease us with the richer truths
or constructions that can come, the film-
makerseemstosay,fromourputtingtwo
andtwotogethertomakefour.
Iris, for punitive contrast, is a
documentary that seems never to end
and should probably never have been
begun. The late filmmaker Albert Mays-
les, a name inscribed in legend (Gimme
Shelter) and lavished with peer-approval
love bites (“the best American camera-
man”, J-L Godard), completed before his
recentdeaththisportraitoftheeccentric
NewYorkfashionguruIrisApfel.
Hers was a piquant life: boutique
owner, interior decor adviser to the
White House. But in her nineties Iris —
more briskly and beatifically caught in
the 2010 documentary Bill Cunningham
New York — has run out of fresh
things to say and do. The Iris outfits,
combining haute couture labels
with clearance-sale clobber (and
beads, beads, beads), still
impress with their bunged-
together elan. The Iris output,
a verbal voguing of drawling
“wisdoms” and waspish put-
downs, is ready to wear in a
whole different sense:
wearing our patience and
politeness after 18 minutes,
nevermind80.
cult,buttherearesignsofprogress.
Last year at the Proms Chinese com-
poser Qigang Chen’s music made its bow
and he is back this year, in the company
of the BBC National Orchestra of Wales
and Chineseconductor,XianZhang.
In the Royal Albert Hall a hush
descended over Chen’s quietly rapturous
Iris dévoilée. It had to — anything less and
the spell conjured by the gently wafting
breeze of sounds he creates would be
broken. Like so many composers from
the east, Chen was seduced early on by
French composers such as Debussy and
Ravel and moved to Paris to study with
Messiaen. His intensely sensitive music
carriesonwherethey leftoff.
Iris dévoilée forms a kind of rainbow
bridge between its suggestive Chinese
poetry, intoned in the style of Peking
Opera, and the pastel-shaded world of
the French impressionists. Meng
Meng, costumed like the Princess
Turandot, chanted the brief Chinese
texts. Two Finnish sopranos, Anu Komsi
and Piia Komsi, soared in wordless radi-
ance. The orchestra made seductive
noises, overlaid by the very delicate
strumming and bowing of the Chinese
pipa, zheng and erhu. Time passed; 40
minutes to be exact. Eternal beauty
demandspatience.
On either side Zhang and the BBC
National Orchestra of Wales offered the
contrast of red-blooded performances
of Russian symphonies. Prokofiev’s
“Classical” Symphony was steadier,
tougher in character than usual. Rach-
maninov’s Symphony No. 2 boasted well
drilled playing and outgoing certainty of
vision, rather than subtle colours and
melancholy. It was a generously
planned Prom, well attended, not
withoutitsrewards.
BBC Proms run to Septem-
ber 12, bbc.co.uk/proms

THIS EVENING’S TELEVISION

Pick of the day

Dag (Sky Arts 9pm) is the
latest Scandi-import. Not a
sinister murder mystery, it’s
a Norwegian sitcom about a
misanthropic marriage
counsellor (Atle Antonsen,
pictured centre) whose
refreshingly time-saving
attitude towards troubled
partnerships includes advice
such as “End this misery . . .
Compatible couples don’t
exist.” Or, more succinctly,
“This is hell.” His long-
suffering sister sets him up
with a string of blind dates,
the latest of whom is unable
to lie, even politely, without
vomiting. It all promises well.
AI: Artificial Intelligence
is too long, has several false
endings and leaves one
wondering what Kubrick, its
original begetter, would have
made of it rather than the
softer-centred Spielberg. But
it’s hauntingly moving, with
fine performances from Jude
Law’s android and the heart-
tugging Haley Joel Osment
as a tech-age Pinocchio
(BBC1 11.15pm). — MARTIN HOYLE

BBC 1 BBC 2 ITV London Channel 4

6.00 BBC News.
6.30 BBC Regional News
Programmes.
7.00 Animal Super Parents.
How different types of
animals rear their young.
8.00 EastEnders.
8.30 Would I Lie to You? New
series. Danny Dyer, Jon
Richardson, Moira Stuart
and Joe Lycett join David
Mitchell and Lee Mack on
the comedy panel show.
9.00 Ripper Street. New series.
The Victorian crime drama
returns as a locomotive
disaster on Leman Street
reunites Reid, Drake and
Jackson.
10.00 BBC News.
10.25 BBC Regional News and
Weather.
10.35 Room 101 — Extra Storage.
Alexander Armstrong, Kelly
Holmes and Henry Blofeld
discuss their pet hates.
11.15 FILM AI: Artificial
Intelligence. Starring Haley
Joel Osment and Jude Law.
6.00 Two Tribes. Quiz.
6.30 Eggheads. Quiz. R
7.00 Gardeners’ World. Carol
Klein visits Logan Botanic
Garden near Stranraer,
while Joe Swift drops in on
a Bristol Street.
7.30 Live Challenge Cup Rugby
League. Leeds Rhinos v
St Helens (kick-off 8pm).
Coverage of the Challenge
Cup semi-final. Subsequent
programmes are subject to
change.
10.00 The Perfect Morecambe &
Wise. R
10.30 Newsnight.
11.00 Artsnight. Richard Wilson
presents a profile of
Samuel Beckett, revisiting
the playwright’s roots and
talking to actors about
their experiences
performing his works.
11.30 Weather.
11.35 FILM The Road. Drama,
starring Viggo Mortensen,
Kodi Smit-McPhee and
Charlize Theron.
6.00 ITV News London.
6.30 ITV News and Weather.
7.00 Emmerdale.
7.30 Coronation Street.
8.00 Gino’s Italian Escape:
A Taste of the Sun. Gino
D’Acampo tours Liguria in
north-west Italy, where he
goes fishing off the coast
of Camogli. R
8.30 Coronation Street.
9.00 BBQ Champ. New series.
Myleene Klass presents as
eight amateur barbecuers
take on a series of cooking
challenges to win £25,000
and the title of BBQ
Champ 2015.
10.00 ITV News at Ten and
Weather.
10.30 ITV News London.
10.40 FILM Crank. An assassin
is poisoned and resorts to
desperate measures to
keep himself alive long
enough to exact revenge.
Starring Jason Statham.
Regional variations apply
6.00 The Simpsons. Ned
Flanders buys the
Simpsons’ home when they
are unable to pay their
mortgage. R
6.30 Hollyoaks.
7.00 Channel 4 News.
8.00 Location, Location,
Location. Kirstie Allsopp
and Phil Spencer visit the
Tees Valley. R
9.00 8 Out of 10 Cats Does
Countdown. Sean Lock
teams up with Andrew
Flintoff to compete against
guest captain Bill Bailey
and Roisin Conaty in the
comedy panel quiz show.
10.00 The Last Leg. Adam Hills,
Josh Widdicombe and Alex
Brooker are joined by
legendary comedian John
Cleese for a comic review
of the significant moments
of the past seven days.
11.05 Rude Tube. Alex Zane
presents a top 50
countdown of internet
“superheroes”. R

BBC3
7.00 Top Gear. 8.00 Don’t Tell the
Bride. 9.00 Wanted: A Very
Personal Assistant. 10.00
EastEnders. 10.30 Russell Howard’s
Good News. 11.00 Family Guy. 11.25
Family Guy. 11.45 American Dad!
BBC4
7.00 World News Today. 7.30
Proms on Four: Friday Night at
the Proms. 9.00 Sound of Song.
10.00 Sound of Song. 11.00
Sound of Song.
Channel 5
6.00 Home and Away. 6.30 5
Other channels
News Tonight. 7.00 Cricket on 5.
8.00 Weather Terror: Eye of the
Storm. 9.00 20 Moments that
Rocked Comedy. 10.30 Lip Sync
Battle: Stephen Merchant v Malin
Akerman. 10.55 Tattoo Disasters
UK. 11.30 Tattoo Disasters UK.
More4
6.50 The Restoration Man. 7.55
Grand Designs. 9.00 The King’s
Speech. 11.20 Embarrassing Fat
Bodies.
Film4
6.40 The Core. 9.00 X-Men:
First Class. 11.35 Wanted.
Sky Atlantic
6.00 Without a Trace. 7.00
Without a Trace. 8.00 Blue
Bloods. 9.00 Band of Brothers.
10.10 Band of Brothers. 11.30 The
Brink.
Sky Sports 1
6.00 Sky Sports Boxing Gold.
6.30 Ringside Special: Life After
Boxing. 7.00 Fight Night
Countdown. 7.30 Luke
Campbell: The Golden Boy.
8.30 Premier League Years.
10.30 Fight Night Countdown.
11.00 Luke Campbell: The
Golden Boy.
Sky 1
6.00 Futurama. 6.30 The
Simpsons. 7.00 The Simpsons.
7.30 The Simpsons. 8.00 Modern
Family. 8.30 Modern Family. 9.00
A League of Their Own. 9.30
Cricket’s Funniest Moments.
10.00 Hawaii Five-0. 11.00 Hawaii
Five-0.
Sky Arts
6.00 Capture. 6.30 The Great
Culture Quiz. 7.00 Urban Secrets.
8.00 The Elaine Paige Show.
9.00 Dag. 9.30 Dag. 10.00 The
Art of the Joy of Sex. 11.00
Naked States.
14 ★★★ FINANCIAL TIMES Friday 31 July 2015

The hard bit

Major oil companies’ refining and marketing divisions have been more
profitable in recent quarters because rising demand for transport fuel and
lower crude oil prices have boosted refining margins. Poor communication
of cost-cutting plans had made Shell cheaper than its competitors

Twitter: @FTLex Email: lex@ft.com Indicative European refining margin 2016 valuation
$ per barrel Enterprise value/earnings ratio*

Nintendo: called an Inkling. For investors, the 6 Procter & Gamble:

Eni
name is apt. The success of one game is Shell
get splatting a small but timely reminder of play it as it lies
Critics of Nintendo’s console business
Nintendo’s strengths. If the company
can show signs of turning round its
4.3 4.7 In golf there is an old joke about how to
have clearly not played Splatoon. The weaknesses, it can repaint its future. 4 increase one’s driving distance off the
Japanese games maker’s virtual tee: just hit the ball and run backwards.
paintball shoot-em-up, in which the Procter & Gamble may have just
aim is to recapture the Zapfish from Nokia Alcatel: discovered the corporate version of this
the evil Octarians terrorising Inkopolis, 2 ruse. Yesterday it announced earnings
has been a blockbuster. After selling groomzilla BP per share for its just-completed fiscal
1.6m copies in under three months, Total year of $4.02, a 2 per cent dip from the
Splatoon pushed Nintendo into profit
last quarter, against expectations:
The most amazing day of your life. Or
possibly just the most expensive. The 0
5.0 5.8
previous year. And when sharing its
outlook for the upcoming year, it said
analysts had forecast losses. Yesterday plans for Nokia and Alcatel-Lucent to its 2016 EPS would be up mid-single
the shares rose 8 per cent due to those head down the aisle are proceeding 2009 10 11 12 13 14 15 digits from 2015. But the rub is that the
numbers. Take that, Octarians. quicker than expected. That should * Earnings before interest, taxes, depreciation, targeted growth was based on a starting
FT graphic Sources: Société Générale; Credit Suisse amortisation and exploration charges
The success of Splatoon shows that surprise no one. Neither company is point not of $4.02 — but several metres
Nintendo, the company that gave the exactly a blushing young bride — both back from the tee, at $3.77.
world Mario and Donkey Kong, is still have insight and scars from their many Promises are like babies: easy to each year since 2010. But the good management’s plans are not only for How so? After a buying spree lasting
good at producing hit games. Even its prior combinations. make, hard to deliver. That may be news for earnings ends there. the BG deal but apply more widely. decades, P&G is busy shedding 100
disappointing hardware — unit sales of To make sure the union works, both why Royal Dutch Shell’s The upstream business in the They are also a clear recognition that brands that it discovered don’t actually
the Wii U fell nearly one-tenth year on companies have been clear it is a management had avoided offering Americas lost money for the second the current oil price weakness could contribute much to profits. Its
year — did not dent the game’s appeal. takeover, not a merger of equals. too many pledges on cost cutting consecutive quarter and refining last several years; management had remaining portfolio will include
Nintendo had been on the up even Nokia’s chief Rajeev Suri is in charge while closing its acquisition of BG margins will probably fall back in the refrained from acknowledging that nappies, razors and laundry detergent.
before Splatoon. In mid-March this and will lead the combined company. Group. But it left the market second half, especially as US based but have clearly reconsidered. Most recently, it has sold off its
year, the company said it had Alcatel-Lucent chief Michel Combes confused; Shell’s share price has refineries have increased their exports The change in tack is welcome, as Duracell battery unit to Warren Buffett
partnered Japanese software company will step down on September 1. done badly since the bid. So in of diesel to Europe. Shell knows it is a strong commitment to the and a range of hair and beauty brands
DeNA to develop its games for While this is not a shotgun wedding, yesterday’s second-quarter results, cannot count on the downstream dividend. This should mollify to Coty. The company says, because of
smartphones — the first time in there is time pressure. Mr Suri is keen management abandoned its earnings bounty lasting much longer — shareholders, even if cash flow post the vagaries of accounting, the beauty
Nintendo’s history that its games will to create a global competitor to reticence and nailed its colours to another reason for the volte face on capital spending (and asset sales) still business should be treated as a
be sold on phones. Since then, the challenge Huawei and Ericsson before the mast. cost guidance. does not cover the payout. discontinued operation. As a result, it
shares have returned 56 per cent to the the next wave of mobile investment — It was a good moment to do so. Shell will cut jobs (including Much of Shell’s recent says its core ongoing earning base
4 per cent Topix return. building 5G networks — begins. Shell’s earnings, at $3.8bn, were expensive contractors) and take a $5bn underperformance versus peers can should be the lower figure of $3.77.
Yet the shares do not reflect all the Combined, Nokia and Alcatel-Lucent above expectations. European chunk out of its investment be ascribed to management’s failure That was not the only irritant in its
growth to come: the new games will be would have had €26bn of revenues last refining margins have been at their programme. Pro forma capital to communicate. The shares now results. The classic investment case for
released towards the end of this year. year, compared with €24bn and €43bn strongest in several years. Refining spending will drop to $35bn in 2016. look cheap. Given yesterday’s change a company such as this is simplicity
Analysts have high hopes. Earnings per for Ericsson and Huawei, respectively. and chemicals profits in the first half Most of these adjustments will come at in tactics, the valuation discount can and predictability: an investor pays 20
share forecasts for the year to March The plans are clipping along nicely. surpassed the full-year average of Shell, reflecting a desire to clarify that now start to close. times earnings for a consumer staples
2017 (likely to be the first full year of The big day is still expected early next company whose earnings do not
contribution from smartphone games) year. Regulatory approval has been deviate much during economic cycles.
have more than doubled since the received in nine markets, including Strong cash flow is distributed to
announcement. That looks attainable, both Europe and the US. Both he is distracted by the minutiae of costs fell sharply to £459m, RBS has set more than double the level in the first shareholders as sizeable dividends.
if Nintendo and DeNA can make good companies reported second-quarter corporate nuptials, the more time aside £4.6bn of provisions to cover quarter. RBS will need a common And while conversion of revenue and
games. results yesterday that beat expectations rivals have to focus on taking business. issues including an impending fine for equity tier one capital ratio above its profits into cash flow has historically
King.com, the Candy Crush and alleviated worries after Nokia’s mis-selling US subprime mortgage internal 13 per cent hurdle before it been strong, P&G forecast disappoint-
developer, made net profits of $800m first-quarter network margins missed securities. Uncertainty on those is one will seek permission to pay dividends ing 2015 growth in revenue of perhaps
in the 12 months to March. Over the 12 expectations by 6 percentage points. Royal Bank of Scotland: reason RBS trades at just 0.8 times — it does not expect to do so before the up a couple of percentage points.
months to June (including the recent Shares in both companies rose. tangible book value. first quarter of 2017. But there is swift That unexciting prognosis prompted
good quarter), the more established There are still some key people to step by step All the more reason for chief progress on capital: the bank’s ratio the shares to slide 3 per cent, on top of
Nintendo made $630m. convince: regulators in Japan, Taiwan, executive Ross McEwan to speed rose sharply in the quarter to 12.3 per a 15 per cent fall since January. A
The upside from smartphones may India and China. The last two are main Think of it as a downpayment. Royal balance sheet shrinkage and cut costs. cent. This year’s sale of the remainder sometimes fractious call with analysts
appear to be in the price: Nintendo growth markets and approval in China Bank of Scotland’s unexpected £293m So far so good: by whittling down RBS’s of Citizens will lift it further. showed that patience for a turnround is
trades on a multiple of 36 times may not be straightforward. Once second-quarter profit — up 27 per cent corporate and investment bank and its But there is another, more irksome beginning to wear thin and that new
forecast earnings for the year ending combined, Nokia’s market share plus from a year ago — triggered a brief bad bank, total risk-weighted assets ratio to fix: the group’s 3 per cent chief David Taylor’s honeymoon has
March 2017. King trades on eight times its stake in Alcatel-Shanghai Bell would share price pop yesterday. Lower bad have fallen to £326bn, from £392bn a return on tangible equity. The pace of ended before it started. P&G no longer
— the market expects no growth. But if give it more than double the 10 per loan and misconduct charges, and a year ago. The deconsolidation of RBS’s turnround should embolden the has any room to run backwards. It is
Nintendo has learnt its lesson from the cent market share limit that Chinese fillip from its Citizens bank in the US, Citizens, once sold, will shave off more. government to start selling taxpayers’ just going to have to work on its swing.
underwhelming Wii U there is officials have for foreign companies. were to thank for the improvement. And, if annualised, cost savings should 78 per cent stake in RBS, and with
potential for more earnings upside, But Mr Suri is highly regarded in China But the state-controlled UK lender hit his full-year target. But it costs greater liquidity comes greater
which would push the multiple down. and few expect this issue to be a deal faces a number of hurdles before money to save money: the £1.1bn investability. But returns are what Lex on the web
For notes on today’s breaking
Players in Splatoon can take control breaker. profits can be shared with investors. restructuring charge, mostly at the really drives the share price. No stories go to www.ft.com/lex
of their own customisable character, The danger is more that the longer Although misconduct and litigation corporate and investment bank, was pressure then Mr McEwan.

LOW
1 0 1 0 25 1000 Forecasts by

14 1010 19
LOW
16 18
15 22
16
5 Luxembourg Sun 22 72
15
11 Lyon Sun 26 79
15 16 Madrid Thunder 31 88
HIGH
18 19 20 2 Manchester Fair 19 66
20
22 Miami Thunder 33 91
14
15 15 22 21 10 Milan Fair 26 79
1020
19 Montreal Fair 27 81
24 22
16 24 Moscow Fair 22 72
20 20 39
29 Mumbai Rain 30 86
15 21 33 Munich Sun 22 72
19 30 37
22 New York Sun 33 91
0 Nice Sun 28 82
18 25 31 2 Paris Sun 24 75
32 36
4 LOW 36 Prague Fair 22 72
1010
1010 Reykjavik Fair 15 59
34 38 33 34 Rio Sun 28 82
Wind speed in MPH at 12 BST 32 Rome Sun 30 86
Temperatures max for day˚C Wind speeds in KPH 33 San Francisco Cloudy 22 72
Stockholm Shower 18 64
Today’s temperatures Strasbourg Sun 25 77
Abu Dhabi Sun 45 113 Belgrade Cloudy 22 72 Copenhagen Cloudy 17 63 Hamburg Fair 17 63 Sydney Sun 17 63
Amsterdam Fair 19 66 Berlin Fair 20 68 Delhi Cloudy 33 91 Helsinki Thunder 19 66 Tokyo Sun 34 93
Athens Sun 36 97 Brussels Sun 20 68 Dubai Sun 42 108 Hong Kong Sun 30 86 Toronto Fair 28 82
B’ham Fair 20 68 Budapest Fair 22 72 Dublin Rain 16 61 Istanbul Sun 32 90 Vancouver Sun 26 79
Bangkok Thunder 32 90 Buenos Aires Shower 19 66 Edinburgh Shower 16 61 Jersey Sun 18 64 Vienna Sun 26 79
Barcelona Fair 28 82 Cardiff Sun 19 66 Frankfurt Sun 24 75 Lisbon Fair 25 77 Warsaw Sun 20 68
Beijing Cloudy 29 84 Chicago Sun 31 88 Geneva Sun 24 75 London Fair 22 72 Washington Sun 34 93
Belfast Rain 14 57 Cologne Sun 21 70 Glasgow Shower 15 59 Los Angeles Sun 27 81 Zurich Sun 24 75

ACROSS 4, 22 Highly unlikely it could be

CROSSWORD 1 Perfunctory choice of Simba in the distance (7,2,3)
No. 14,997 Set by GAFF academics (3,5) 6, 15 No way for Navy to demand
5 Bank Arabs use a lot for capital sunshine without first dodging
        (6) storm (5,2,1,5,2,7)

10 Measuring volume of disco 7 Leads a choir rehearsing in D
regularly, putting youngster sharp (5)
  first (5) 8 A rat claims he’s raised the bar
11 Lines indicating air is nearly (8)
gone (4,5) 9 A guess is bad manners (6)
  12 Producing dramatic literary 16 One’s trying to get away by 6 –
openings not unknown (9) pack anti-left-wing circular (9)
13 Event where the winner gets 17 Hide lover’s desire during
  
the most bucks (5) endless provocative dance (8)
14 Mark pens first rate song (6) 19 By far extremes of anarchy lies
 15 See 6 Down chaos (6)
18 Partial lift-off by Armstrong, 20, 21 Using second cue, hit a
  
maybe? (7) terrible long shot (7,6)
 20 Take in old man with tablets 23 Turnaround of character
back to front (6) needed after cricket match
  
22 See 4 Down disgrace (5)
24 Hot IT man’s corrected bug
(5,4)
  25 People start hysterical cries
about election (3,6) Solution 14,996
26 Wore ragged (3,2) % $ / 8 6 7 5 $ ' ( & + , &
  27 Detention given by master 8 , & ( , ( 5
during break (6) & 2 0 ( $ & 5 2 6 6 2 5 * <
CROSSWORD
No. 14,845 Set by NEO
        ACROSS DOWN
1 Important Viking one among best 1 Hard maths topic written up to find
friends (5,4) circumference (5)
  6 Socialite with appeal makes left- 2 Love comes in no time, wildly, for
side entry (5) passion (7)
9 Brazilian city as far as we’re 3 Disagreed also with a thousand
concerned ungovernable (7) children (4,5)
  
10 Obscure English knight against 4 Bond gets to a casino and is
European rebuffed (7) beaten (11)
11 Poor nation’s little island in hot 5 Beast summarising Tokyo-London-
   current (5) Tokyo trip? (3)
12 Caught flamboyant cardinal in 6 Painter died hungry (5)
Seventh Heaven? (5,4) 7 Discount supermarket name in
  
14 Notice flock encircles houses (3) GB’s upturn with loss on top (7)
15 Alarmist financier reversed into 8 As 007 mission to Spectre might
second vehicle bearing right (11) be? (3-6)
17 German poet’s the writer 13 Dope sheathes weapon in open
   
embracing pub vocalist (11) coat (11)
19 Moggy fur with hole concealed? (3) 14 Soul an unknown factor in some
20 Earl, King and Queen on men? Fearless pilots? (9)
   Hampshire river’s banks (9) 16 Girl having paddle round saw
22 Ambassador in temple finds grain manor demolished (9)
(5) 18 Mistress Gwynne about to be
 
24 Ardent Green must change leader announced in sport (7)
(7) 19 Side issue for Clintons (7)
26 As one’s despicably mean, small 21 Having ducks in horses area
tips for servants materialise (2,5) causes commotion (3-2)
JOTTER PAD 27 Sauce unfortunately knocked over 23 Crime article Financial Times
contains sulphur (5) provides (5)
28 Related martial artist stops at 25 Sick at first, old man here for
Bedouin residence (9) healthy holiday (3)
Solution to Saturday’s prize puzzle on Saturday February 14
Solution to yesterday’s prize puzzle on Monday February 16
Winners’ names will be printed in Weekend FT

. 3 7 8 ( & 0 6
28 Play banned player out of 6 2 0 1 $ 0 % 8 / , 6 7
JOTTER PAD necessity (8) ( 6 /
5 2 & . 2
%
3 ( 5 $
5
/ 2
7
&
$
$ /
DOWN $ $ * 1 5 8 5 6
1 Fairy Queen’s purse (6) ' ( / + , 0 $ . ( 3 ( $ & (
2 Strange, but étoile is black hole , ( &
& 2 0 3 $
( $
6 6 3 2 , 1 7
% 7

(9) $ 2 / + ) ' $ ,
3 Rarely heard solitary miscreant 7 , ' < ( , 6 7 ( ' ' ) 2 '
( ( 1 ( , 5 (
on display tonight (4,2,1,4,4) ' $ / ( 2 * ( 1 0 ( / 2 1 6
Friday 31 July 2015 ★★★ 15

Nintendo Shell Nokia Dollar index Two-year US Xetra Dax Brent oil Brazilian real/
City Insider ‘Bucking Treasury US dollar
broncos’ in Barclays’ spin 8.3% 4.2% 7.53% 0.5% 3bp 0.4% 0.1% 1.4%
HARRIET AGNEW, PAGE 20
Y22,195 £18.39 €6.43 97.49 0.73% 11,257.15 $53.31 R$3.3788

Starwood and IHG discuss link-up Short

View
3 Talks could lead to world’s biggest hotel chain 3 Wyndham also likely to eye US group
talks with Starwood with a view to a Mr Solomons said that IHG’s strategy of dealmaking and property sales,
Elaine
ARASH MASSOUDI AND MALCOLM MOORE
LONDON combination of the businesses”. was to grow organically. He said that the ‘We signed including the launch of a £1bn-plus Moore
JAMES FONTANELLA-KHAN — NEW YORK
Starwood in effect put itself up for sale company had signed deals to manage more deals hotel group in the UK by Lone Star, the
InterContinental Hotels has held early- in April, appointing Lazard to explore a 231 hotels in the first half. US private equity group, this month.
stage talks with Starwood Hotels & “full range” of strategic and financial “There is a lot of noise around consoli- in the first Starwood shares were down 5.4 per One quirk for which the UK is regularly applauded is the
Resorts over a union to create the options. The move came after Frits van dation. If you look back a few years it half than cent to $78.20 by the close in New York, infrequency with which it has to worry about rolling over
world’s largest hotel group, according to Paasschen, Starwood’s former chief was real; now it is effectively organic,” and IHG shares surged 4.6 per cent to national debt.
two people familiar with the discus- executive, quit in February as the com- he said. “We have had extensive organic any time close at £27.43 after the Financial Times The average lifespan of bonds issued by the UK, known
sions. pany struggled to maintain growth. consolidation: we signed more deals in since 2008’ reported the talks. as gilts, is just over 16 years, according to the Debt Manage-
The informal talks were very tenta- Starwood is hoping to decide on a path the first half than any time since 2008, IHG is working with advisers includ- ment Office. Compare that to the US, where the average
tive and Starwood may choose another by the end of the year but offered no we are building new brands and buying Richard ing Bank of America Merrill Lynch on its debt maturity is about 5.5 years, or Germany where it is
suitor or pursue another strategy, both guidance at its second-quarter results up little brands like Kimpton.” Solomons, IHG talks with Starwood, according to one nearly 6.5 years.
people cautioned. yesterday. The hotel industry in the US, UK and person close to situation. So far, so prudent. In a world of bloated government
Starwood may be conducting parallel Richard Solomons, IHG chief execu- Europe is 10-15 per cent above its 2007 Starwood’s market capitalisation is debt, short-termism can be a dangerous habit. Shorter-
talks with other interested parties, one tive, declined to comment about Star- peak in terms of revenue per available $13.8bn, while IHG’s is roughly $9.5bn, term bonds increase the threat that rising interest rates
person added, with candidates likely to wood as he reported a 21.5 per cent rise room, according to analysts at Morgan but Starwood filed plans last month to could have a dramatic impact on the cost of servicing debt.
include US hotel group Wyndham. in first-half pre-tax profits to $458m. Stanley. spin off its vacation timeshare business That is why “locking in” low rates in sovereign debt mar-
IHG said that it was not currently “in Starwood declined to comment. The fizz in the sector has seen a wave into a separate publicly traded business. kets has become a political mantra echoed across Europe,
Asia and the US. This year Mexico issued a rare century-
long bond while Spain and Canada have recently stretched
the maturity of their debt into unprecedented territory
with their debut 50-year bonds.
In the year to date, governments around the world have
Up, up and away sold $69.4bn of international bonds maturing in 30 years
Sri Lanka signs for or longer, compared with $62bn in the same period last
year, according to Dealogic.
Google balloon WiFi But longer-debt profiles do not automatically equal
lower risk. Sweden, which borrows relatively little and has
a gold-plated triple A rating, sells Europe’s highest propor-
Project Loon, Google’s stratospheric tion of short-term debt. Greece, locus of the eurozone debt
internet access project, has signed an crisis, was granted a relatively long debt maturity by its
agreement with the government of Sri creditors before the recent deadlock.
Lanka, making the tropical island nation There is also a reason that the office in charge of selling
a frontrunner in the race to offer gilts has avoided setting a target for long dated debt in spite
countrywide WiFi access from huge of government rhetoric favouring long-term planning.
helium-filled balloons, writes James The UK’s lengthy debt profile is more the product of luck
Crabtree in Mumbai. than prudence, born of the domestic pension industry’s
Launched in 2013, Project Loon is an near-insatiable appetite for long-dated assets, which keeps
ambitious plan to encircle Earth with a the cost of long-term borrowing cheap. If the cost of long-
chain of balloons high in the atmosphere term borrowing rose, the argument for a lengthy average
that provide internet access to remote debt maturity profile would change.
areas. Because the same audience does not exist to the same
Project Loon is one of several so-called extent elsewhere, borrowing over shorter periods is
“moon shot” projects developed by the cheaper. Countries hoping to elongate their debt profiles
company’s secretive Google X will need to encourage buyer demand to keep up.
laboratory, ranging from solar-powered
drones to self-driving cars.
The balloon project aims to provide
UK government debt
Average maturity (years)
internet access at speeds close to third-
generation mobile phones, although it 18
faces technical obstacles, including
navigating its balloons in wind currents 16
towards the edge of the Earth’s 14
atmosphere. The average
Loon has also pitched Google into a 12 lifespan of UK
high-altitude contest with Facebook, sovereign debt is
which is developing its own plans for 10 16 years, against
networks of drones, satellites and lasers, 2004 06 08 10 12 15 5.5 years in the
to see which can be first to provide US and 6.5 years
internet coverage across remote parts Source: UK DMO in Germany
of the planet.
elaine.moore@ft.com
Marty Melville/AFP

Former US banking regulator Bair

quits Santander board after 18 months
TOM BRAITHWAITE — SAN FRANCISCO would interfere with my responsibilities as the bank’s executive chairman
MARTIN ARNOLD — LONDON
to the college,” Ms Bair wrote in a letter following his death last year.
Sheila Bair, the former US banking to the Systemic Risk Council, a regula- Since taking over last September, Ms
regulator, has resigned from the board tory advocacy group, whose chairman- Botín has appointed a new chief execu-
of Banco Santander, ending a some- ship she is also giving up. tive, replaced the heads of its US opera-
times uncomfortable 18 months at The departure is expected to be tions and hired a new chairman of its UK
Spain’s largest bank. announced by Santander as soon as subsidiary. She also appointed three
Centrica to cut 6,000 jobs today and becomes effective at the end new independent directors to its board.
in focus on energy supply Ms Bair, who was head of the Federal of the third quarter, according to people An outspoken critic of big banks, Ms
Deposit Insurance Corporation during familiar with the matter. Santander Bair won both friends and enemies for a
British Gas owner Centrica is to cut the financial crisis, is leaving to concen- declined to comment. tough stance at the FDIC that often saw
6,000 jobs as part of a strategy of trate fully on a new role as president of The bank yesterday reported a 17.6 her clash with other regulators, particu-
downsizing its oil and gas production Washington College in Maryland, per cent rise in second-quarter net larly at the US Treasury.
business and focusing on energy according to a letter from her, seen by profit to €1.71bn, helped by reduced She was protective of the FDIC’s insur-
supply. It aims to raise up to £1bn from the Financial Times. provisions for bad loans in the UK, Spain ance fund and clashed with other
selling wind farms and some “Though I have very much enjoyed and Portugal. officials in her desire for more wholesale
exploration and production assets. my service on the board of this historic The resignation is the latest in a string change at Citigroup, which was then
Report iPAGE 20 banking institution, the frequent trips of personnel changes at the bank since close to failure.
to Spain are time-consuming and, I fear, Ana Botín succeeded her father Emilio Santander profits up page 17

Companies / Sectors / People

Companies
Airbnb.............................................................12
Airbus........................................................16,21
Alcatel-Lucent...........................................14
Alibaba...........................................................19
Amazon.....................................................1,20
Anheuser-Busch InBev......................1,18
Apple........................................................16,30
Areva...............................................................18
AstraZeneca................................................21
Audi.............................................................1,30
Avic....................................................................6
BG Group................................................14,18
BMW................................................................21
BP...............................................................18,28
BT....................................................................20
Babcock........................................................29
Baidu...............................................................19
Balderton Capital.....................................21
Bankia.............................................................17
Bankinter......................................................17
Bell Pottinger.............................................21
Blackstone..................................................30
Boeing............................................................16
Bombardier..................................................16
Brevan Howard...........................................2
Bunge.............................................................29
BuzzFeed......................................................19
Casino.............................................................16
Caterpillar.................................................1,30
Celgene.............................................................1
Centerview Partners.................................1
Centrica........................................................20
Chime Communications................20,21
Cisco..................................................................9
Citigroup.......................................................15
Comcast........................................................19
ConocoPhillips..........................................29
Credit Suisse.............................................20
Crowdcube...................................................21
DeNA..............................................................14
Delphi Automotive..................................21
Deutsche Bank..........................................17
Draper Esprit..............................................21
EDF..................................................................18
EE.....................................................................20
Ericsson.........................................................14
Exito................................................................16
Facebook.............................................9,19,29
Ford..............................................................1,30
Freeport-McMoRan...............................30
General Dynamics...................................16
General Motors.........................................21
GlaxoSmithKline.......................................21
Goldman Sachs........................................30
Google....................................................9,15,19
HBO.................................................................16
HellermannTyton...............................21,29
Huawei.....................................................14,16
IBM.....................................................................9
Idemitsu........................................................18
Incrediblue...................................................12
InterContinental Hotels.......................15
JPMorgan.....................................................17
King.com.......................................................14
Lufthansa.....................................................19
Malaysia Airlines........................................8
Microsoft.......................................................12
NBCUniversal.............................................19
Netflix.................................................12,16,20
Nike.................................................................30
Nintendo.......................................................14
Noble Group..............................................28
Nokia........................................................14,29
Numis..............................................................21
Ola....................................................................16
Panmure Gordon.....................................29
Peugeot............................................................1
Pfizer...............................................................21
Procter & Gamble...................................14
Providence..................................................20
Providence Equity Partners..............21
Qorvo.............................................................29
RSA.................................................................20
Receptos..........................................................1
Renault.............................................................1
Rolls-Royce..................................................21
Royal Bank of Scotland.................14,17
Royal Dutch Shell..........14,18,20,28,29
Ryanair...........................................................19
Sabadell.........................................................17
Samsung Electronics.............................16
Santander................................................15,17
Schneider Electric......................................1
Siemens...........................................1,3,29,30
Sky Sports....................................................12
SoftBank.......................................................16
Sony.................................................................16
Spotify............................................................12
Starbucks.....................................................30
Starwood Hotels......................................15
TalkTalk........................................................29
Telstra............................................................19
Tencent..........................................................19
Tiger Global................................................16
Time Warner..............................................16
Tullow Oil....................................................29
UBS..................................................................17
Uber...........................................................12,16
United Technologies................................1
Vale..................................................................18
Vedanta Resources................................29
Volkswagen................................................30
Volvo...............................................................21
Vox Media....................................................19
WPP...........................................................20,21
Warner Brothers.......................................16
Whole Foods..............................................29
Xiaomi............................................................16
Yahoo................................................................9
Zurich.............................................................20
Sectors
Aerospace & Defence.....................16,21
Airlines...........................................................19
Automobiles.............................................1,21
Banks.........................................6,14,15,17,,28
Energy..................................................3,18,20
Food & Beverage....................................18
Media........................................15,16,19,20,21
Mining............................................................18
Oil & Gas..........................................14,18,28
Personal & Household Goods.........14
Pharmaceuticals....................................1,21
Retail...............................................................16
Support Services......................................12
Technology............................................16,19
Telecoms.......................................................14
Travel & Leisure.......................................15
People
Adkerson, Richard..................................30
Antonio Álvarez, José...........................17
Bewkes, Jeff................................................16
Botín, Ana....................................................15
Brito, Carlos................................................18
Clark, Kevin.................................................21
Combes, Michel........................................14
Conn, Iain....................................................20
Cook, Tim....................................................30
Cryan, John.................................................17
East, Warren...............................................21
Ermotti, Sergio.........................................20
Fields, Mark...............................................30
Group, Tudor................................................2
Hemsley, Oliver.........................................21
Hester, Stephen.......................................20
Hugin, Bob.....................................................1
Jain, Amit.....................................................16
Johri, Akhil.....................................................1
Kaeser, Joe.....................................................1
Klingler, Christian.......................................1
Knoche, Philippe......................................18
Laidlaw, Sam.............................................20
Li, Robin........................................................19
Lynn DeWalt, Michael..........................30
McEwan, Ross......................................14,17
McFarlane, John......................................20
Menne, Simone.........................................19
Naouri, Jean-Charles.............................16
Osborne, George........................................2
Parker, Sir Alan........................................20
Patterson, Gavin.....................................20
Plepler, Richard........................................16
Robb, Walter..............................................29
Rudd, Roland............................................20
Satterthwaite, Christopher.................21
Senn, Martin..............................................20
Solomons, Richard..................................15
Soriot, Pascal..............................................21
Sorrell, Martin Sir..............................20,21
Stevenson, Ewen......................................17
Suri, Rajeev.................................................14
Thiam, Tidjane.........................................20
Tricoire, Jean-Pascal................................1
Van Beurden, Ben...................................18
Wadhwani, Sushil.......................................2

© The Financial Times Limited 2015 Week 31

16 ★★★ FINANCIAL TIMES Friday 31 July 2015

COMPANIES
INSIDE BUSINESS
Technology
MEDIA

Uber to step up gear in $1bn India drive Matthew

US ride-hailing app group
targets growth markets
and escalates local rivalry
JAMES CRABTREE — MUMBAI
Uber is set to plough $1bn into a major
expansion in India, placing its invest-
ment in the country on a par with that in
China and signalling an escalation of its
rivalry with domestic ride-sharing Ola.
In June, it was revealed Uber planned
to spend $1bn in China in 2015 to catch
up with Didi Kuaidi, the market leader
backed by internet groups Alibaba and
Tencent.
At the time, Uber’s Chinese drivers
were making close to 1m daily trips, a far
higher level than most analysts
expected. India’s ride-sharing market is
less developed, but Uber hopes its finan-
cial firepower will enable it to overtake
Ola in the next year.
[monthly] growth . . . and with more
investment in product, hiring, and pay-
ment solutions, we expect to grow at an
even faster rate.”
Uber declined to comment on current
performance in India but industry esti-
mates suggest it offers about 200,000
daily rides.
Ola also declined to comment but
people familiar with the Bangalore-
based group say it operates more than
twice as many daily rides in more than
Garrahan
It has already raised $400m at a valu-
ation of about $2.4bn in April.
One of Ola’s financial backers, who
asked not to be named, said: “It’s obvi-
ously an attempt to intimidate potential
Creativity holds key to
investors in Ola’s next round. But it
won’t work. Ola is going to have plenty
HBO closing sky-high
of money to fight back.”
India’s ride-hailing app market is
growing rapidly, but its two leading
Netflix valuation gulf
‘[This players have seen a series of political
and regulatory setbacks complicate
attempt to

The US ride-hailing app company said
the spending drive would see its service
hit 1m daily fares by March 2016, the
first time it has produced such a target
in India.
Yesterday’s announcement marks the
latest salvo in Uber’s battle to match
fast-growing local competitors in China
and India, as it pours funds into its most
important growth markets.
Amit Jain, president of Uber India, 100 cities.
described the target as “incredibly Much of Uber’s investment is
ambitious”. expected to be spent on expanding the
He said it would be achieved by subsidies it offers to tempt passengers
launching the service beyond the 18 cit- and encourage new drivers to sign up.
ies in which it operates, the largest News of Uber’s spending spree comes
number outside of the US. as Ola, which is backed by Japanese
“We are extremely bullish on technology group SoftBank and Tiger
the Indian market,” he said. “We are Global, the US investment group, is near
continuing to see robust 40 per cent to closing a financing round.
Technology. Smartphone battle
F
their expansion plans. or a technology company, Netflix certainly
intimidate Uber and Ola are braced for potential makes a lot of television. At a presentation this
investors] new restrictions in New Delhi, following week to the Television Critics Association in Los
a court ruling this week which threat- Angeles, the streaming video business pledged to
won’t work. ened to uphold an earlier ban on all such produce 475 hours of original programming in
Ola is going to apps. the next 12 months.
have plenty Uber previously suffered a temporary Its strategy of adding its own films and TV shows, such as
ban in the Indian capital last December, new series from the director Baz Luhrmann and comedian
of money to following an allegation of sexual assault Aziz Ansari, to the content it licenses from other providers
fight back’ by a driver. has served Netflix very well. The company has 65m sub-
scribers worldwide and a gravity-defying share price,
which has risen close to 600 per cent over the past five
years. Its $45.4bn market capitalisation is greater than the
combined value of commercial broadcasters CBS and ITV.
Netflix has said it will expand into every significant glo-
bal market — including China — by the end of 2016. Its

Samsung units diverge as rivals gain ground
Mobile division flounders
while Apple’s inroads bring
rewards for chip business
SIMON MUNDY — SEOUL
Even as the mobile business of Samsung
Electronics has battled to reverse falling
sales in a fiercely competitive market,
colleagues in other divisions of the
South Korean conglomerate have wel-
comed the increased competition.
Samsung’s earnings for the three
months to June showed the seventh con-
secutive declining quarter, and the dis-
appointing numbers were rooted in the
company’s mobile business.
Operating profit at the IT and mobile
division, which is largely focused on
handsets, fell 38 per cent year on year to
Won2.7tn ($2.4bn), with sales of the
Galaxy S6 flagship phone falling below
company expectations.
In contrast, Samsung’s semiconductor
business saw earnings surge 83 per cent
to Won3.4tn. This was due in part to the
competitive pressures that are hurting
the group’s mobile business, said Baek
Jae-ho,anexecutive inthe division.
“The competition in smartphones is
becoming fierce,” he told analysts on a
What growth remains is
going to rivals — notably in
China, the world’s biggest
smartphone market
conference call. “And the result is that
even low-end smartphones are now
adopting [high-resolution] displays,
which is driving up” the need for more
memory on the devices.
Yesterday’s results showed a stark
divergence between the fortunes of a
handset division losing market share to
Apple and Chinese smartphone makers
such as Xiaomi, and a semiconductor
division that is booming in part because
of demand from those same rivals.
Mr Baek’s statement underscored
Samsung’s revived status as a company
that makes most of its profit from com-
ponents, echoing a shift at Sony, the
electronics group, which has tripled its
second-quarter profit thanks to surging
semiconductor sales despite losses in
smartphones.
Samsung’s shares fell 3.8 per cent,
having risen 2.7 per cent the day before
on expectations it would announce a
share buyback alongside the results.
That proved unfounded.
Sales and operating profit declined
Samsung is still 7 per cent and 4 per cent respectively, in
the largest line with preliminary guidance. But the
smartphone detailed earnings release confirmed the
maker by sales, Galaxy S6, which it had hoped would
although the give a boost to the ailing smartphone
Galaxy S6 has business,didnotfulfilexpectations.
undershot Last year Samsung’s earnings were hit
expectations hard as it struggled to offload unsold
Ahn Young-join/AP Photo
stock of the poorly received Galaxy S5.
The company promised more careful
inventory management to avoid a repeat
— only to be punished this year for
another supply chain error. It was una-
ble to meet demand for the premium
“Edge” version of the S6, while sales of
the basic model undershot expectations.
Samsung said it had addressed the
capacity constraints and expected sales
to be boosted in the second half by the
launch of a larger version of the S6 Edge.
But while the company remains the
leading smartphone producer by sales,
analysts said Samsung would struggle to
return to meaningful growth. The com-
pany is shifting to a strategy focused
more on protecting its margins with a
smaller number of products, said Keon
Han, an analyst at Credit Suisse.
Global smartphone shipments are set
to expand 11 per cent this year, accord-
ing to research group IDC, down from 39
per cent in 2013.
But what growth remains is going to
Samsung’s rivals — notably in China, the
world’s biggest smartphone market,
where IDC said Samsung’s market share
halved to less than 10 per cent in the
first quarter of this year. It lost out to
homegrown rivals such as Huawei,
which last week said handset revenues
increased 87 per cent in the first half.
Meanwhile Apple has enjoyed record
sales of its iPhone 6, leaving a smaller
addressable market for competitors in
the high-margin premium market. “If
Apple is beating its own estimates, that
means someone else is losing and that’s
predominantly Samsung,” said Mr Han.
But Apple’s success is a boon for the
group’s semiconductor business, which
has won a lucrative contract to make
processor chips for the next iPhone.
Samsung’s memory chip division, the
world’s biggest by sales with a big tech-
nological lead over its peers, is profiting
as producers seek to make more power-
ful phones. Xiaomi this year launched a
phone with 4GB of memory, more than
any Apple or Samsung handset.
“We think this trend will continue on
to next year. When we meet our custom-
ers, they say memory is one of the core
things to a smartphone,” Mr Baek said.
An executive from Samsung’s display
unit said it planned to sell the curved
screens that drove demand for the S6
Edgetoothersmartphone makers.
Peter Yu, an analyst at BNP Paribas,
said this was a sign of Samsung’s
increased willingness to allow its com-
ponents business to focus on making its
own profits, instead of playing a support
role to the handset business.
“There’s a war out there” in the mar-
ket, he said. “Some people will bleed to
death, but those who make the money
are the ones who sell the weapons.
That’s the component makers.”
service clearly resonates with audiences who have
embraced its on-demand, digital ethos.
But is its sky-high valuation fully justified, particularly
when compared with HBO, the Time Warner-owned pre-
mium network behind hit shows such as Game of Thrones
and The Sopranos?
The two companies share some attributes. They both
want high-quality programming, they both also license
films from Hollywood studios and they each operate in
multiple markets. HBO is accessed primarily through pay-
television services — it has 46m subscribers in the US and
120m globally — whereas Netflix can be accessed digitally
(although it still operates a subscription DVD business).
Netflix trades at 130 times the $347m it generated in
operating income over the past 12 months. HBO, mean-
while, generated $1.8bn of operating income over the same
period: applying Netflix’s multiple would value HBO at an
eye-popping $234bn. This is almost four times the market
value of Time Warner and would not include its other
assets, such as the Warner Brothers studio or Turner cable
networks.
This disparity is even more dramatic when considering
analyst estimates for 2015 earnings. They expect Netflix to
generate $0.23 per share for the year, giving the company a
price to earnings ratio of 465.
Time Warner, by contrast, is
trading on a multiple of
HBO’s streaming
about 19 times forecast 2015 service could be
earnings.
What explains the valua-
just as globally
tion gulf? There are several distributed as
factors. Netflix is a direct-to-
consumer business, selling
Netflix one day
subscriptions in each market
in which it operates. Two-thirds of its customers are in the
US so there is significant potential in other markets. It is a
relatively cheap service and costs only $7.99 a month in its
home market so there is also potential to increase prices.
Its top line revenues from streaming increased
30 per cent year over year; HBO revenues, by contrast,
have been relatively flat.
At Netflix, short-term profits have been sacrificed as the
company invests to build a truly global streaming net-
work. The prospect of vast future earnings, say analysts, is
what appeals to growth investors.
HBO is already extremely profitable which, perversely,
may explain its lower multiple. It derives most of its earn-
ings from the cable and satellite operators that carry its
channels: its programming is also licensed internationally
by companies such as Sky, which pay it hefty fees.
But, like Netflix, HBO is also in the streaming game. This
spring it launched HBO Now, a standalone service that
aggregates all of its content without the need for an expen-
sive pay-TV subscription.
Richard Plepler, chief executive, has talked about pur-
suing the 10m US broadband users who do not subscribe to
cable or satellite TV. Yet there may be an even bigger prize
on offer for HBO. Its streaming service could, one day, be
just as globally distributed as Netflix. Its licensing deals
with international partners would have to expire before
this could happen, which would take time, depending on
the country and the terms of its agreements.
It is unclear why this potential upside has not been
priced into Time Warner shares. Yes, HBO has differences
with Netflix but its core business — content — is the same.
From Six Feet Under and True Detective to John OIiver: Last
Week Tonight and Girls, there is arguably no company bet-
ter at producing it than the Time Warner-owned group.
Netflix trades on a tech-style multiple; Time Warner
does not. If Jeff Bewkes, Time Warner’s chief executive,
wants to unleash a similar valuation, the creativity of HBO
holds the key.
matthew.garrahan@ft.com

Aerospace Investment companies

Bombardier delays new jet as orders dive
ROBERT WRIGHT — NEW YORK
Canada’s Bombardier was forced yes-
terday to postpone the planned entry
into service of its new business jet amid
a dive in orders and a worsening of its
debt position resulting from the devel-
opment of its C Series commercial jet.
The company said that the develop-
ment of the Global 7000 business jet —
intended to have a range of 7,300 nauti-
cal miles, one of the longest ranges on
the market — presented “challenges”,
which had “impacted the programme’s
schedule”. The jet had been due to enter
service in the second half of next year.
“The aircraft will now enter into serv-
ice in the second half of 2018,” the com-
pany said as it issued second-quarter
results. The Toronto-listed B shares,
which were C$4.20 at the start of the
year, initially dropped 13 per cent but by
lunchtime had recovered to be down
about 10 per cent to C$1.76.
The delay is the latest bad news
announcements this year from Bombar-
dier, which has poured corporate re-
sources into developing the C Series sin-
gle aisle jet, intended as a competitor to
Boeing’s 737 and Airbus’s A320 family.
Cost and timetable overruns for the C
Series have held back the company’s
profitable business jet operations. The
The Global 7000
will enter service in
2018, leaving the
Gulfstream
G650ER
unchallenged
delay to the Global 7000 will give Gen-
eral Dynamics’ Gulfstream a longer
period unchallenged at the top end of
the business jet market. Gulfstream’s
G650ER is the longest-range business
jet, capable of flying 7,500 nautical miles
without refuelling.
Net income for the second quarter fell
19 per cent to $125m, on revenues down
5.5 per cent to $4.62bn. Net debt rose to
$5.9bn, against $5.73bn at the start of
the year, although the company stressed
that equity and debt issues this year
meant that it had cash and cash equiva-
lents of $3.1bn on hand.
Alain Bellemare, who took over as
chief executive in February, said the
quarter had been “in line with plan” in
terms of revenues, earnings before
interest and tax (Ebit) and deliveries.
KKR to inject $150m into India’s JBF Industries
HENNY SENDER — NEW YORK
JBF Industries, a listed polyester maker
based in Mumbai, is to receive a $150m
capital infusion from KKR in a transac-
tion expected to be announced today
following board approval, people close
to the situation said.
Like other industrial companies, JBF
took on a lot of bank debt to meet a
surge in demand that failed to material-
ise and ran into funding issues. The
money from KKR will be used to com-
plete a $600m petrochemical plant in
Mangalore in the south-western Indian
state of Karnataka, while the remaining
portion will help pay down JBF’s $1.6bn
net debt.
The deal is a small indication that for-
eign capital is flowing into India 14
months after the Narendra Modi gov-
ernment came to power with its prom-
ise to get the Indian economy moving
once again. But local private sector
investment has been virtually stagnant
and much of the initial euphoria which
greeted the new government has faded.
“The prime minister needs these
kinds of deals which bring in foreign
capital to complete projects and help get
the country growing again,” said one
person involved in the transaction.
“India is more attractive today than it
was 18 months ago.”
Part of the reason India looks attrac-
tive is because many other emerging
nations appear relatively less attractive.
A combination of slower growth, mar-
ket volatility and slow decision making
as a result of the anti-corruption cam-
paign has diminished the lure of China,
while lower commodity prices have
posed challenges in many other emerg-
ing markets including Brazil, Chile,
Indonesia and South Africa.
Business people in India cite a wel-
come new flexibility in negotiations.
Promoters are willing to give up more of
their equity, while banks, though still
reluctant to write down the value of
their debt, are willing to make conces-
sions on covenants and other terms.
On the JBF deal, the controlling Arya
family will see their 54 per cent stake in
the company drop as KKR takes 20 per
cent of the equity, which could rise if the
investment group takes advantage of a
conversion mechanism in the debt.
KKR declined to comment, while JBF
could not be reached for comment.
Friday 31 July 2015 ★ FINANCIAL TIMES 17

COMPANIES

Deutsche Bank chief blasts poor performance

Cryan says results
are ‘nowhere near
good enough’ and
underscore problems
facing the lender
JAMES SHOTTER — FRANKFURT
Deutsche Bank’s new chief executive
described its latest results as “nowhere
near good enough” as he delivered a
blunt assessment of the array of chal-
lenges facing Germany’s biggest lender.
In the three months to the end of June,
Deutsche reported a net profit of
€818m, or €0.40 per share, up from
€238m in the same period last year.
Helped by the weakness of the euro,
revenues rose strongly, climbing 17 per
cent from €7.9bn to €9.2bn.
The figures were better than expected
— analysts had forecast net profits of
€722m from revenues of €8.6bn — and
shares in the bank closed up 5.3 per cent
to €31.85 in Frankfurt.
However, John Cryan, the former UBS
banker who succeeded Anshu Jain as co-
chief executive of Deutsche on July 1,
said that the results, which included a
€1.2bn litigation charge mainly linked
to “legacy US mortgage-related
matters”, underscored the problems
facing the bank.
“Our challenges are . . . evident in the
‘We must reduce
organisational complexity,
which inhibits effective
decision making’
unacceptably high level of our costs, our
continuing burden of heavy litigation
charges, a balance sheet that must be
more efficient, and the poor overall
returns to our shareholders,” he said.
“Our cost/income ratio of 85 per cent
and annual return on tangible equity of
5.7 per cent are both well below where
we aim to be and should be,” he added in
a forthright note to staff.
Mr Cryan reiterated that he was com-
mitted to the five-year strategy laid out
in April by Mr Jain and co-chief execu-
tive, Jürgen Fitschen, which involves
selling the Postbank retail banking busi-
ness, cutting assets at the investment
bank, and shrinking Deutsche’s cost
base by €3.5bn. The 54-year-old Briton,
who is due to give details of how he will
implement the plan in the autumn, did
not spell out any precise initiatives yes-
terday. However, he insisted that for the
strategy to succeed, Deutsche would
have to become more efficient.
“We must be disciplined in how,
where and with whom we do business.
We must critically review any countries,
business lines, products and relation-
ships that are unattractive,” he said.
“We must shrink our balance sheet,
focusing on our many low-return assets.
Counting the costs Regulation push
G30 calls for chiefs’ pay
to hinge on standards
An influential group of bankers has
lambasted standards of conduct
across the industry, calling for
boards to link executive pay to
improvements in culture to ensure
that the “tone at the top” has “a
clear and consistent echo from the
bottom”.
Since the financial crisis the
biggest global banks have paid out
hundreds of billions of dollars in
fines, settlements and provisions,
while adding tens of thousands of
compliance staff to keep on top of
new laws and regulations. But so
far there have been only patchy
efforts by the banks to address “a
multitude of cultural failures”,
according to the Group of Thirty, a
non-profit body chaired by Jean-
Claude Trichet, former president of
the European Central Bank.
In a report published yesterday,
the G30 makes recommendations
including the establishment of an
explicit link between the pay of the
chief executive and the cultural
standards of the bank. The report
did not set out how those
standards should be measured, or
how deeply such links should
spread through the ranks. But it
argued that a lack of clear
connections between pay and
Deutsche Bank conduct had fostered bad
behaviour by encouraging
Cost/income ratio (%) Return on equity after tax (%) Investment bank pre-tax profits Share price (€)
executives to bend rules or take
H1 (€bn) risks for short-term rewards.
100 20 4 40
“Financial consequences for
80 Group 15 deficiencies of action or oversight
Investment bank 3 35 should be material, and be
60 10 perceived so internally,” the G30
2 30 said.
40 5 The report, which arose from
discussions late last year with the
1 25 Financial Stability Board and the
20 0
New York Federal Reserve, marks
0 -5 0 20 one of the first attempts by the
banking industry to review its basic
2014 2015 2014 15 2011 12 13 14 15 Jan 2014 15 Jul systems of incentives.
Sources: company; Thomson Reuters Datastream In a speech last month, FSB
chairman Mark Carney said the
group would work “to improve the
Deutsche Bank’s We must reduce organisational However, Deutsche warned that the Deutsche’s best-performing division alignment between remuneration
new co-chief complexity, which inhibits effective ratio was likely to fall again in the in the quarter was its asset and wealth and conduct risk across the globe”.
executive decision making, blurs accountability second half of the year, as a result of new management arm, where pre-tax New York Fed president Bill Dudley
John Cryan says and embeds wasteful cost.” regulations. profits more than doubled to €422m. — who defines culture as “the
the lender must The two areas of the new strategy The bank also has a number of legal However, the bank’s other divisions More on ft.com implicit norms that guide behaviour
be disciplined in where analysts are most keen for more wrangles to resolve, ranging from inves- also reported strong gains, with Banks in the absence of regulations or
how, where and detail are costs and capital — both long- tigations into sanctions-busting to Deutsche’s flagship investment banking challenged on compliance rules” — has warned
Super Thursday
with whom it standing weaknesses for Deutsche. probes into whether Deutsche breached arm notching up a 45 per cent increase of results that unless banks make more
does business “Revenue growth has been slower than anti-money-laundering laws for in pre-tax profits. Deutsche’s global serious efforts to improve
ft.com/alphaville
Ralph Orlowski/Bloomberg
cost growth in core divisions. That has to Russian clients. Some analysts have transactions unit managed a 28 per cent standards, they will face ever-firmer
be reversed,” said Kinner Lakhani, an speculated that it could need to raise increase and profits at its retail bank pressure to be broken up.
analyst at Citigroup. more capital. climbed 27 per cent. The report calls for “meaningful
On the face of it, Deutsche’s capital Mr Cryan acknowledged that the “Overall, these were a good set of and consistent” cuts in pay to
position at the end of the second quarter bank could not control “external” numbers, both in terms of how the punish behavioural lapses — rather
showed signs of improvement. The events. However, he said that he did not trading businesses did versus expecta- than the “ad hoc” approach of
bank shed assets, helping its core tier think that raising capital was in the best tions, as well as the improvement in the banks such as JPMorgan, which
one capital ratio, a key measure of finan- interests of Deutsche’s shareholders, balance sheet,” said Jon Peace, an docked the bonus of chief Jamie
cial strength, climb from 11.1 per cent at and made clear that he would prefer to analyst at Nomura. “However, we’re still Dimon after a $6bn trading loss.
the end of March to 11.4 per cent at the shed assets to improve the bank’s waiting for the details of the strategy. Ben McLannahan
end of June. capital position. Execution will be everything.”

Banks. Capital levels Banks

RBS gains breathing space, for the moment
Despite positive quarterly
results the bank still faces
some big financial hurdles
EMMA DUNKLEY
Royal Bank of Scotland dashed investor
hopes of a dividend payment next year
and warned of a “noisy” period ahead
with looming mis-selling fines, damping
prospects for government plans to begin
selling its stake.
The bank, which is 80 per cent backed
by the UK government, released a better
than expected set of earnings yesterday,
reporting a net profit of £293m in the
second quarter — up 27 per cent from
the same period last year.
The quarterly net profit marked a
reversal of fortune after RBS reported a
first-quarter loss of £446m, as the bank
pushes on with major restructuring
plans to retrench globally and focus on
the UK market. However, in spite of the
positive results, chief executive Ross
McEwan warned of “tough issues com-
ing down the track”, highlighting the
need to settle with US regulators over
the alleged mis-selling of mortgage-
backed securities.
The warning comes only a month
after George Osborne, the UK chancel-
lor, unveiled plans to start selling down
the government’s stake in the country’s
biggest ever privatisation, albeit at a loss
to the taxpayer.
Sir Philip Hampton, the outgoing
chairman of the bank, recently told the
Financial Times that it might be wise to
wait until after a US regulatory settle-
ment is struck “in the coming months”
before the government starts selling its
stake.
Mr McEwan said although “it would
be nice” if the settlement happened this
year, to help clear “some of the issues
that have been a drain on this organisa-
tion”, the bank is not currently in talks
with US regulators and that it could be a
further six to 12 months before discus-
sions start.
Settling with the US regulators, which
analysts estimate could cost at least
£5bn, is also one of the main hurdles in
the way of the bank resuming dividend
repayments. RBS had previously guided
that it will return excess capital either in
the form of a dividend or share buy-
back, once it surpasses a core tier one
ratio of 13 per cent.
But the bank clarified yesterday that
there are a number of other “issues” to
work through beforehand, which
includes the settlement with US regula-
Clouds looming: a US settlement could cost RBS £5bn — Chris Ratcliffe/Bloomberg
tors. Ewen Stevenson, chief financial
officer, warned the bank will not there-
fore distribute capital before the first
quarter of 2017 at the earliest. The bank
must prove it has sustainable profits, he
said, having delivered seven successive
years of net annual losses. “We need to
get through this year’s stress-testing
round and next year’s stress-testing
round before we can begin capital distri-
butions,” he added.
RBS has come under pressure to
strengthen its capital reserves after
almost failing the Bank of England’s
stress test at the end of last year. The
bank boosted its capital buffer from 11.5
per cent at the end of March to 12.3 per
cent in the second quarter as it contin-
ues to repair its capital strength.
Analysts at Morgan Stanley lauded
the move to boost capital as “encourag-
ing”, in spite of incurring £1.5bn of costs
to cover mis-selling and restructuring.
RBS has managed to bolster its capital
buffers by accelerating the sale of its
stake in Citizens, the US retail bank,
which is expects to finish by the end of
2015 — a year ahead of schedule.
RBS announced this week a further
selldown of its current 40 per cent
stake, which could lower its holding to
20 per cent.
In another move to boost capital, the
bank announced an issuance of addi-
tional tier one notes denominated in US
dollars. Mr Stevenson described the
launch as “another important mile-
stone” for the bank, with the aim of rais-
ing at least £2bn of AT1 this year.
Aside from improving capital, the
lender shed assets in its Capital Resolu-
tion division — the internal “bad bank”
— by £3bn in the second quarter, mean-
ing nearly 80 per cent of the unit has
now been exited. The bank expects to
have completed its rundown from RCR
by the end of the year.
The bank reported underlying oper-
ating profit, excluding the cost of
restructuring the bank and conduct
charges, of £1.81bn, down slightly from
£1.95bn in the second quarter of last
year largely because of the rundown of
the investment bank and subsequent
decline in revenues.
RBS must now overcome other hur-
dles. As a condition of receiving state aid
during the financial crisis, it must carve
out Williams & Glyn as a “challenger”
bank, a process at risk of being delayed.
“We’re making very good progress but
it is a tough act to get it out,” said Mr
McEwan. “We’re aiming for an IPO at
the end of next year — our view is we’ll
get there.”
See Lex
Santander net profits up 17.6%
as provisions for bad loans fall
IAN MOUNT — BARCELONA
Lower provisions for bad loans in the
UK, Spain, and Portugal helped lift
Banco Santander second-quarter net
profits 17.6 per cent year on year to
€1.71bn, but worries about the Spanish
part of the business weighed on the
stock.
Shares in the Spanish bank fell 3.4 per
cent to €6.28 in Madrid on loan growth
concerns and a fall in its home market in
net interest margin, which measures the
gap between interest paid to clients and
that charged on loans.
The Spanish market was down 1.4 per
cent on the day.
The bank’s overall percentage of non-
performing loans compared with total
lending fell to 4.64 per cent from 5.45
per cent a year ago.
An improving economy in Spain
helped the lender lower its non-per-
forming loans from 7.59 per cent to 6.91
per cent, compared with last year.
In Brazil’s weakening economy, the
bank also managed to cut its non-per-
forming loans from 5.78 per cent last
year to 5.13 per cent for the quarter,
although they rose from 4.9 per cent last
quarter.
“We have clear improvement in all
our loan ratios, even in markets where
the environment is not completely
healthy, such as Brazil,” said José Anto-
nio Álvarez, the bank’s chief executive.
During the first half of the year, net
interest income rose 13.6 per cent, to
€16.32bn.
However, Banco Santander and Span-
ish rivals such as Banco Sabadell are
competing for local customers by offer-
ing higher interest rates on larger
accounts, which can squeeze margins.
The bank showed its biggest profit
increases in its largest markets of Spain,
the UK and Brazil. First-half profits in
Spain increased by 50.3 per cent, to
€771mn; in the UK they rose 32.7 per
cent to €1.0bn; and in Brazil those rose
32.8 per cent to €1.0bn.
Stefan Nedialkov, a Citi Research ana-
lyst, wrote in a note that the company’s
expectations were the occasion for some
worries.
He wrote: “Some parts of the guidance
given were worse than expected, while
others were better. On balance, we
believe, the negatives (charges of differ-
ent nature across the geographies, lower
Spanish loan growth and Spain NIM
pressure) marginally offset the positives
(improving asset quality across many
geographies).”
Other Spanish banks have also
reported profit increases this week
including Bankinter, Banco Sabadell,
and Bankia.
Bankia reported an 11.5 per cent
increase in first-half profit, to €556m, as
it also lowered its provisions for bad
loans in Spain. The Spanish government
owns about 60 per cent of the bank after
bailing it out following the popping of
the country’s real estate bubble.
Bankinter’s first-half profit rose 11 per
cent to €197mn. Banco Sabadell
increased its first-half profits 55.3 per
cent to €352.2mn. In a move that will
globalise the lender further, Banco
Sabadell acquired the UK’s TSB Banking
Group during the period.
18 ★ FINANCIAL TIMES Friday 31 July 2015

COMPANIES

Energy Mining

Areva reveals it now needs €7bn cash boost Vale profits

Nuclear group discloses
shortfall as EDF pays €2bn
for stake in reactor unit
MICHAEL STOTHARD — PARIS
Struggling French nuclear group Areva
yesterday disclosed it needed a bigger
than expected capital injection worth
€7bn as it also unveiled a far-reaching
agreement with EDF on asset disposals
and other projects.
The two companies — both state-con-
trolled — agreed in principle that EDF
will pay €2bn for a 75 per cent stake in
Areva’s reactor unit, called Areva NP, in
a radical reshaping of the French
nuclear industry that has come after
months of tense negotiations.
Areva’s shares closed 2.2 per cent up
at €8.26. EDF’s shares were up 3.4 per
cent at €21.85.
Following the deal, Areva, which
reported a €4.8bn net loss last year, will
be reduced to a nuclear fuel company
that mines, enriches and then disposes
of uranium. The heart of the company —
designing, building and servicing
nuclear reactors — is being sold off.
Areva said, however, that it would
need €7bn in capital over the next two
years, meaning that as much as €5bn
will be required from sources other than
utility group EDF. A significant percent-
age of the additional funds is likely to
come from a government-backed capi-
€5 tal raising.
bn
The French government may have to
Amount French
government contribute between €4bn and €5bn, far
faces having to more than the €2bn to €3bn that minis-
contribute to Areva ters had hoped for just a few months
ago, according to people familiar with
€3 bn
the situation, although the exact level of
the capital raising was not announced
Maximum that
French government yesterday.
had been hoping to Areva said it could secure €400m
contribute from selling some other assets including
Oil & Gas. Crude prices
Canberra, its nuclear measurements
subsidiary, and as much as €1.2bn from
other sources of equity financing.
This suggested a government-backed
capital raising that might be closer to
€4bn.
The two companies also said they
would set up a dedicated company to be
80 per cent owned by EDF and 20 per
cent by Areva NP, aimed at improving
the design and management of brand
new reactors projects.
One of the problems that has weighed
on Areva in recent years has been cost
overruns at key projects, particularly
the Olkiluoto 3 reactor in Finland,
which is 10 years behind schedule and
prompted the company to take €3.9bn
in impairment charges.
Areva and EDF said they would be
“immunised” against any risks
related to the Olkiluoto 3 project,
suggesting that the French govern-
ment has agreed to shield them
up 17% as it
Areva chief
executive
from further losses. EDF also said it
would probably sell some of its stake in
digs its way
Philippe Knoche
says he is aiming
Areva NP to third parties, but retain a
shareholding of more than 51 per cent in
out of iron
to refocus the
company on ‘its
core business,
the unit.
This comes as EDF and Areva both
reported first-half results. Areva
ore slump
the nuclear reported a €206m net loss for the six
fuel cycle’ months to June 30, compared with a JOE LEAHY — SÃO PAULO
€488m profit in the same period last
Brazil’s Vale, the world’s largest iron
year. Revenue rose 6 per cent to €1.9bn.
ore producer, has bounced back in the
Philippe Knoche, Areva chief execu-
second quarter of this year to report
tive, said: “We are targeting a clear
net profit of $1.68bn, up 17.3 per cent
objective for 2017: to transform Areva
from a year earlier, helped by higher
into a competitive company refocused
production and cost cuts.
on its core business, the nuclear fuel
cycle, where it has unique human and The results for the three months ended
industrial capital in the world.” June were above analysts’ expectations
EDF, which is grappling with a fall in and followed its worst profit result in six
European power prices, reported years in the first quarter, when it
net income of €2.5bn for the six reported a $3.12bn loss, largely because
months to June 30 — flat compared of a depreciation of the country’s cur-
with the same time last year. Reve- rency, the real, against the dollar.
nues rose 6 per cent to €38.4bn. The second-quarter results came as
the company predicted a weak Chinese
property market would begin to stabi-
lise from the fourth quarter of this year,
stabilising steel demand in Vale’s largest
market.
“Improvement in the property mar-

Shell cutting 6,500 jobs amid ‘prolonged downturn’
Anglo-Dutch group to slash
capital spending budget by
20% after oil-price crash
CHRISTOPHER ADAMS — ENERGY EDITOR
Royal Dutch Shell is cutting 6,500 jobs
and will slash its capital spending
budget by 20 per cent this year, as it pre-
pares for a “prolonged downturn” in
crude prices by scrapping and delaying
billions of dollars in energy projects.
The Anglo-Dutch group said yester-
day it would reduce investment by $7bn
from last year’s levels to about $30bn in
2015, a bigger drop than forecast three
months ago and a sharper reduction in
capital spending than many of its rivals.
Ben van Beurden, Shell chief execu-
tive, sought to dispel investor concerns
that its proposed $55bn takeover of BG
Group, announced in April, would
struggle to work at prices of $70 a barrel
or less, and criticisms that the group had
‘We are not waiting for
the $90 cavalry to arrive
when we deal with
today’s challenges’
Ben van Beurden, Shell CEO
been slow to respond to the oil price
crash.
“Judge us on what we do,” he told
reporters. “I want to be very clear we are
acting with determination. “We are not
waiting for the $90 cavalry to arrive
when we deal with today’s challenges.”
He conceded that the group had not
communicated this with sufficient
“urgency” at its full-year results in
January.
Shell’s shares, which have underper-
formed other big oil and gas groups,
closed up 4.2 per cent at £18.39 in Lon-
don.
Oswald Clint, analyst at Bernstein,
said that Shell’s latest figures on spend-
ing addressed investor concerns that
“Shell’s heads are in the sand”.
“With progress on the [BG] deal on
track, this is a new emerging business
which can pay dividends whatever the
oil price environment,” he added.
The BG deal is awaiting some regula-
tory approvals.
For the first time since crude began its
plunge — to $53 from $115 last summer
— Shell set out in full the measures it has
been taking to reposition the company
Shell has responded to investor concerns by unveiling its strategy to reposition the company for a downturn — Andrey Rudakov/Bloomberg
for a downturn that it warned “could given the final go-ahead this year, said
last for several years”. Mr van Beurden. Among those
The 6,500 job losses include reduc- described as “cancelled” was the expiry
tions already announced in its North Sea of a longstanding concession in Abu
business, the US, Canada, Norway and Dhabi, where Shell and BP refused to
Nigeria, and include a cut in the number pay multibillion-dollar signing-on fees
of contractor roles. Shell employed for a new deal.
94,000 people at the end of December. Shell expected asset sales of $50bn
Just two big energy projects would be from 2014 to 2018, as the enlarged
Shell performance
Net income ($bn) Return on invested capital (%)
8 8
6 6
4 4
2 2
0 0
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 14 15 2013 14 15
Source: Bloomberg
Shell-BG, with a leading position in liq-
uefied natural gas and deepwater Bra-
zilian oil, focused on fewer but bigger
projects.
It is selling a one-third stake in Showa
Shell, the Japanese refiner, to Idemitsu
for $1.4bn, and will “take a good look” at
its North Sea portfolio.
Shell’s action comes amid an indus-
try-wide scramble to cut costs, shed
labour and scrap or defer more expen-
sive projects, from Canada’s oil sands to
deepwater fields in the Gulf of Mexico.
The fall in oil prices, caused mainly by
Opec’s decision not to cut output in the
face of a US supply glut, has stoked fears
that companies might fail to maintain
dividend payouts. Some $200bn in
spending on large projects has been
pushed back in an effort to cover those
payouts, according to Wood Mackenzie,
the energy consultancy.
“We have to be resilient in a world
where oil prices remain low for some
time, while keeping an eye on recovery,”
said Mr van Beurden.
“We’re taking a prudent approach,
pulling on powerful financial levers to
manage through this downturn, always
making sure we have the capacity to pay
attractive dividends for shareholders.”
In the three months to June 30, Shell
reported $3.8bn of earnings on a current
cost of supplies basis excluding identi-
fied items — a measure of profit pre-
ferred by analysts. This compared with
$6.1bn in the same quarter last year, but
the performance exceeded analysts’
expectations.
The company highlighted improved
refining margins and robust down-
stream results, where profit more than
doubled from $1.3bn to $3bn, offsetting
the impact of lower oil prices. However,
profits from exploration and produc-
tion fell 78 per cent to $1bn. Output
declined 11 per cent from one year ago.
Analysts were upbeat, pointing to the
strong contribution from refining — a
common theme for the majors — tough
cost control and capital spending cuts.
Analysts at Tudor Pickering Holt said
Shell had “moved more aggressively to
align its business for a lower-for-longer
oil price environment”.
See Lex
ket will translate into more investments
and new floor starts as from [the fourth
quarter of 2015] and help balance the
market in the near term,” Vale said.
The decline in Chinese demand has
coincided with increased iron ore pro-
duction in Brazil and Australia, sending
the price of the steelmaking ingredient
to six-year lows. Vale has responded by
boosting production, slashing invest-
ment and other costs and shipping less
lower quality ore.
But analysts remain sceptical that the
‘Improvement in the
[Chinese] property
market will translate
into more investments’
company can do enough in the near
term to significantly offset the falling
iron ore price, which Vale said dropped
6.25 per cent in the second quarter com-
pared with the first to $58.4 per tonne.
“We expect the market to turn its
attention to [the second half of 2015]
and 2016 earnings and, in our view,
expansions and lower costs will not be
enough to offset lower commodities
prices,” Credit Suisse said in a report
released before the results.
Second quarter adjusted earnings
before interest, taxation, depreciation
and amortisation dropped 46 per cent
against a year earlier to $2.21bn. This
was above the average $1.83bn from
13 estimates compiled by Bloomberg.
Gross revenues were US$7.08bn in the
second quarter, a fall of 29.7 per cent
against a year earlier but up 11.4 per
cent on the first quarter.
“We estimate Vale’s ebitda in [the sec-
ond quarter of 2015] to be the highest
until [the second quarter of 2017],”
Credit Suisse said, maintaining an
“underperform rating” on the stock.
Vale shares were up 1.68 per cent at
15.11 reals per share at the close of trad-
ing in São Paulo on Wednesday after
falling to their lowest level since May
2005 earlier in the week. They have
fallen a total of 49 per cent over the past
year.
The company also reported yesterday
that it had concluded the sale of four of
its very large iron ore carrier ships to
China Merchants Energy Shipping, the
Chinese shipping company, for $448m.
Vale said it was estimating that 90m
tonnes of iron ore capacity would exit
the seaborne market this year while
another 110m tonnes would be added.
“On the supply side, major iron ore
producers continued to expand produc-
tion leading to closures of higher cost
mines, deferral of decisions and cancel-
lation of projects,” Vale said.

Contracts & Tenders

Food & beverages

AB InBev struggles to match 2014 World Cup performance

DUNCAN ROBINSON — BRUSSELS
Anheuser-Busch InBev, the world’s
largest brewer by sales, suffered a
hangover after last year’s World Cup
with volumes dropping sharply in its
second quarter.
Volume of drinks sold slumped across
the business, with Brazil and Europe
leading the fall, as the brewer struggled
to emulate the sales bonanza of the 2014
World Cup in Brazil.
The brewer, which makes Stella
Artois, Budweiser and Corona, suffered
an 8 per cent drop in sales volume in
Brazil compared with the same period
the previous year.
In total, volumes fell 2.2 per cent
across the group.
Carlos Brito, chief executive, said
it had been a “challenging quarter”,
before blaming the weather in both
China and the US for some of the poor
performance.
Earnings per share fell a quarter to
$1.18. Normalised earnings before inter-
est and tax dropped a fifth to $3.4bn.
Shares in the group declined 3.8 per
cent to €109.15 in Brussels. “Even
AB InBev has the occasional bad quar-
ter,” said Eddy Hargreaves, an analyst at
Canaccord Genuity.
There were some bright spots. Its per-
formance in Mexico was strong, with
volume growth of 4.1 per cent. Likewise,
the group was optimistic that China
would bounce back in the second half of
the year.
Organic revenues across the business
rose 4.1 per cent, hitting $11.1bn for
the quarter as the brewer focused on
selling more of its expensive premium
lagers.
The brewer, listed in Belgium but
based in New York, has attempted to
combat stagnant sales of its staple
lagers, launching high-profile market-
ing campaigns in an effort to “premiu-
mise” some of its brands. This has
started to have some effect, according to
the company.
Global sales of Budweiser, the
brewer’s emblematic US brand that has
struggled in recent years, were “very
encouraging”, the company said, with
volumes growing 6 per cent across the
globe.
Other brands such as Bud Light
have struggled. “We can and must do
AB InBev, maker of
Stella Artois and
Budweiser,
suffered an 8 per
cent drop in sales
volume in Brazil
better with Bud Light,” said Mr Brito.
AB InBev, which has a market capital-
isation just shy of €180bn, has also
pushed into “craft beer” — the idiosyn-
cratic beers often favoured by younger
drinkers.
Brands such as AB InBev’s Goose
Island IPA are growing quickly with
“double digit” growth, according to the
chief executive.
AB InBev built its dominant position
through a series of ambitious mergers
and acquisitions.
Although persistent rumours have
linked it to its smaller peers, such as
SABMiller, management would not be
drawn on when they would do another
megadeal.
“M&A remains a core competency
and we will always be looking at oppor-
tunities,” said Mr Brito. “We do not feel
any pressure to do deals.”
Friday 31 July 2015 ★ FINANCIAL TIMES 19

COMPANIES

Media Technology

Fox and BuzzFeed close in on NBC deals Baidu bows

Traditional media group
looks to invest in digital to
reach younger audience
MATTHEW GARRAHAN — NEW YORK
BuzzFeed and Vox Media, two leading
digital news groups, are close to striking
hefty investment deals with Comcast’s
NBCUniversal that value BuzzFeed at
$1.5bn and Vox at $850m.
NBCUniversal, owner of the US
broadcast network, Universal movie
studio and portfolio of cable channels,
will invest $250m in BuzzFeed and an
undisclosed amount in Vox.
The investments serve each company
in different ways, according to a person
familiar with the situation. Like other
traditional media groups, NBC wants to
reach younger audiences that are
increasingly shunning television for dig-
ital platforms. For BuzzFeed and Vox,
the new funding and closer partnership
with NBC could lead to television
projects and new sources of revenue, the
person added.
Vox and BuzzFeed have both invested
in branded content, a growth area for
digital news operations. The branded
content market is forecast to increase by
The US 20 per cent a year in the US, from $10bn
in 2014 to $25bn in 2019, according to
branded new research from Boston Consulting
content Group, the professional services firm.
market is set The negotiations to invest in the two
companies are at an advanced stage but
to rise by 20% no deals have yet been signed, according
a year to people familiar with the matter.
Technology. Digital drive
The value of digital properties able to
connect with large audiences online has
soared in recent years. Last year, Buzz-
Feed, known for its lists, Gifs and exper-
tise in aggregation, took a $50m invest-
ment from Andreessen Horowitz, the
Silicon Valley firm, which valued it at
$850m. It also briefly held talks with
Disney for a sale which would have val-
ued it at $1bn.
Vox, which owns sites such as SB
Nation, Curbed and Eater, secured
$46.5m of financing last year from Gen-
eral Atlantic, the New York private
equity firm, in a deal that valued it at
$380m.
The company recently bolstered its
portfolio of web properties with the
acquisition of Recode, the influential
technology which was started by two
to investors
former Wall Street Journal reporters,
Kara Swisher and Walt Mossberg. News
with $1bn
of the talks were first reported by
Recode, the technology news website
owned by Vox, which already counts
buyback
Comcast as a shareholder.
BuzzFeed and Vox may have an eye on CHARLES CLOVER — BEIJING
Vice Media in negotiating their new
Baidu has moved to restore investor
deals with NBCUniversal. The youth-
confidence with a $1bn share buyback,
$1.5 focused media group’s valuation has
bn after $12bn was wiped off the Chinese
soared since it got into television pro-
Value of search engine’s stock market capitali-
duction and distribution. Last year it
BuzzFeed if it sation in the wake of disappointing
strikes a deal raised $500m from investors last year
quarterly earnings.
with NBC including A&E Networks and Technol-
ogy Crossover Ventures, the Silicon Val- The buyback will be funded with exist-
$850 m
ley private equity firm, that valued it at ing cash and will take place over
$2.5bn. 12 months, Baidu said yesterday, after
Vox’s value if it
NBCUniversal declined to comment its shares fell 14 per cent over the week.
secures the
investment on the talks with BuzzFeed and Vox Baidu narrowly missed analysts’ esti-
from NBC Media. mates for second-quarter profits and
guidance for third-quarter revenues
The company said that the move
“demonstrates Baidu’s confidence in the
O2O [online-to-offline] opportunity
and in our ability to capture it. It’s our
commitment with nine zeros”.

Singapore start-ups aim to be top kids on the block
City-state hopes to become
the Silicon Valley of Asia, but
ready funding outweighs ideas
LOUISE LUCAS — HONG KONG
Keen tech investor though he is, Hugh
Mason is grateful he does not have a
weak bladder: “Every time you go for a
pee, someone is pitching you an idea,”
he says.
Welcome to Block 71 in downtown
Singapore, home to more than 100 start-
ups, accelerators and angel investors
and, together with Blocks 73 and 79,
among the densest technology ecosys-
tems in the world.
Dubbed LaunchPad, this is where the
city-state is pursuing its goal of becom-
ing the world’s top digital nation — and
where geeks are disrupting everything
from estate agents to healthcare.
‘To make money [in
Singapore], there’s no pain.
And without pain it’s hard
to have good innovation’
Singapore offers a strong legal system and so little red tape that it is possible to set up a business online in only 15 minutes — Edgar Su/Reuters
The city state is well placed to fulfil its
aim of becoming an Asian Silicon Valley.
While China and India attract more dol-
lars, Singapore offers a strong legal sys-
tem and minimal red tape — a business
can be set up online in 15 minutes —
making it a logical base from which to
access bigger regional markets that lack
these advantages.
Best of all, it is awash with money.
Much of the privately raised venture
capital is matched by government fund-
ing, helping Singapore trump most of its
peers outside China and India in terms
of overall investment.
Singapore’s $324m last year was
nearly 10 times Hong Kong’s $37m,
according to Asian Venture Capital Jour-
nal. That is still far behind China, which
saw $5.5bn in investments in the first
half of this year, and India with $3.3bn.
Singapore itself already boasts 55,000
start-ups that are employing staff.
The glaring problem is the dearth of
creative talent. Markus Gnirck, who
runs accelerator Startupbootcamp Fin-
Tech, which he co-founded in the UK
last year, sums it up: “Europe has way
more ideas than investment; Asia has
More on ft.com more investment than ideas.”
Hong Kong and Singapore are
seeking to emulate the start-up Singapore’s zealous government has
culture of Silicon Valley. Ben tried to improve things in this area too.
Bland and Louise Lucas examine Mr Gnirck has a base at government-
whether they are succeeding. subsidised Bash (Build Amazing Start-
ft.com/video ups Here), a vast 22,000 sq ft space that
looks like a cross between an Ikea show-
room and a Montessori nursery.
Here a host of start-ups enjoy not just
Venture capital investment cheap space but a new way of thinking.
$m Joseph Ziegler, a transplanted Texan
who runs a start-up accelerator for Tel-
0 100 200 300 stra, the Australian telecoms group, is
unconvinced and says the easy money is
Australia
2014 part of the problem. He says the start-up
2015 YTD scene in Singapore is “boring boring
Hong boring. To make money here, there’s no
Kong pain. And without pain it’s hard to have
good innovation.”
Japan Government officials bridle at such
complaints. They say the administra-
Singapore tion has a road map to end grants and
other funding, but the initial leg-up has
to come from the state — as it did in Sili-
con Valley.
Source: Asian Venture Capital Journal
They also say earlier criticisms of
wanton capital allocation, when anyone
who put their hand out received a
cheque, are no longer valid — a strict
selection procedure ensures that only
the best are awarded the coveted fund-
ing and mentoring available at Bash.
The idea is that private-sector capital,
which is plentiful at start-up level, will
fill the gap. “We know it would not sur-
vive if we needed the government to
sign a cheque every time,” says Eddie
Chau, a veteran entrepreneur and
investor based in Block 71.
The government originally weighed
in alongside venture capital firms in the
wake of the 2008 financial crisis, a time
when the country saw an influx of tal-
ent, as bankers lost their jobs and entre-
preneurs, such as Mr Mason, arrived
from the US and Europe.
But if checking into Singapore’s eco-
system is straightforward enough, exit-
ing is less so.
Unlike Hong Kong, Singapore’s initial
public offerings market is sluggish and
there are few big Alibaba, Google or
Facebook-style companies ready to
snap up the next big thing, notes Mr
Ziegler.
Alexey Pisarev, a banker and founder
of a wearable device that juices up exer-
cise routines, laments the lack of fund
managers who understand start-ups.
“To have M&A you need multibillion-
dollar companies around. It will take
time before we reach that level of matu-
rity.”
One answer already in evidence, says
Mr Ziegler, is big multinationals using
research and development budgets to
invest in start-ups. Mario Aquino, ven-
ture partner at McKinsey Solutions, the
professional services firm, agrees.
“Multinationals are building their
own accelerators and corporate venture
capital arms,” he says. “There are
increasing connections between start-
ups and large corporations.”
For Steve Leonard, tasked with lead-
ing the government drive from the Info-
comm Development Authority of Singa-
pore, “there has been a great awakening
of the entrepreneurial spirit . . . Singa-
pore is on a new growth strategy”.
Reporting results on Monday, Baidu
forecast revenue growth for the current
quarter at 34-37 per cent.
“Last year, they had a full year of 50 or
near 50 per cent year-on-year revenue
growth, and now they’ve had two quar-
ters sub-40 per cent and another quar-
ter of guidance suggesting mid-30s. So
basically the message is that for search,
the party is over,” said Mark Natkin of
Marbridge Consulting in Beijing.
Analysts worry that the slowdown
raises doubts about Baidu’s ability to
manage the transition from an internet
ruled by PC users to one dominated by
smartphones, where users pick from a
screen full of apps instead of finding
content through search engines.
Robin Li, Baidu’s chairman,
announced in June a Rmb20bn ($3.2bn)
investment over three years in Baidu
Nuomi, its Groupon-like marketplace,
to lift its performance in mobile.
Nuomi is envisioned as a focal point
for services such as movie ticket sales
and taxi hailing where physical and vir-
tual commerce are combined in what is
known as “online-to-offline” business
funnelling users to online payments sys-
tems.
Analysts have expressed concern that
Baidu is losing focus, citing as an exam-
ple Baidu wallet, the online payment
system founded in April 2014 and the
weakest of China’s major online pay-
ment services.
In data released for the third quarter
of 2014 by Analysys, a Beijing-based
consultancy, Baidu Wallet, its mobile
payments service, was found to have
0.06 per cent of the market. This com-
pared to 79 per cent for Ant Financial’s
Alipay, the country’s most popular
mobile payments service which is
owned by rival Alibaba.
The companies published more
recent figures which suggest the gap has
closed slightly. Baidu said it had 35m
active users for Baidu Wallet at the end
of June, while Alipay said it had 400m.
“People are concerned that Baidu is
not going to be able to move to online-
to-offline because their payment sys-
tem is a lot weaker than Tencent and
Alibaba,” said Shaun Rein of China Mar-
ket Research Group in Shanghai.Invest-
ments in things like movie tickets and
other “online-to-offline” businesses are
“something they haven’t proved they
are good at,” he added.
“They’re getting hammered because
they’re making the investment they
need to potentially thrive in the next
five to 10 years. The concern is, are they
making the right investments, and are
they going to be good at those new
businesses?”

Technology Airlines

Google defies ‘right to be forgotten’ demands
MURAD AHMED
Google will disobey a formal notice
from France’s privacy watchdog, which
has demanded the company extends
Europe’s “right to be forgotten” online
around the world, in a move that risks
further legal action.
In a controversial ruling last year, the
European Court of Justice found citizens
have the right to ask internet search
engines to remove embarrassing or sen-
sitive results that include their name.
Google has accepted the judgment,
but has a policy of stripping sensitive
links only from European versions of its
search engine. That means links
expunged from Google’s French, Ger-
man or British sites do not need be
stripped from Google.com.
Last month, the Commission nation-
ale de l’informatique et des libertés
issued Google with a formal notice,
arguing that links must also be stripped
internationally to comply with the law.
Google said yesterday it will “respect-
fully disagree” with the watchdog’s
demands, adding that it has asked for
the formal notice to be removed. “While
the right to be forgotten may now be the
law in Europe, it is not the law globally,”
said Peter Fleischer, global privacy
counsel at Google.
He said there are “innumerable”
examples around the world where con-
tent declared illegal in one country
would be deemed legal in others. “Thai-
land criminalises some speech that is
critical of its king, Turkey criminalises
some speech that is critical of Atatürk
and Russia outlaws some speech that is
deemed to be gay propaganda.”
Mr Fleischer added: “If the CNIL’s
proposed approach were to be
embraced as the standard for internet
regulation, we would find ourselves in a
race to the bottom. In the end, the inter-
net would only be as free as the world’s
least free place.”
‘While the right to be
forgotten may now be
the law in Europe, it is
not the law globally’
Google said it believed the CNIL’s
request was “disproportionate” because
97 per cent of French internet users
access Google.fr, rather than any other
version of the search engine.
CNIL said it would deal with Google’s
response within the statutorily required
period of two months. It added that the
technology group’s arguments were in
part “political”, whereas it said its own
reasoning was “strictly legal”.
The French watchdog is leading dis-
cussions among a group of data protec-
tion regulators across all 28 EU member
states over the implementation of the
right to be forgotten. Its move ramps up
pressure on Google, potentially creating
a regulatory front against the technol-
ogy group at a time when it is already
facing an antitrust probe related to its
dominance of the search market and
attacks over its tax avoidance regime.
France would be the first country to
open a sanctions process over the right
to be forgotten, but CNIL’s powers are
limited as it is can only impose fines of
up to €150,000. The larger threat is that
the French regulator and others may
seek to take the company to court again.
Lufthansa battles budget rival in home market
CHRIS BRYANT — FRANKFURT
Lower fuel costs helped Lufthansa lift
operating profit by more than half in
the second quarter but it warned that
ticket price pressure would continue as
low-cost rival Ryanair pushes into the
German airline’s home market.
Operating profit adjusted for one-off
items leapt 52 per cent to €635m in the
three months to the end of June, exceed-
ing a €524m consensus forecast and
helped by a €309m fall in fuel costs dur-
ing the first half of the year.
However, adjusted for currency
effects, Lufthansa’s yields — a measure
of ticket prices — declined 5.7 per cent in
the second quarter.
Simone Menne, chief financial officer,
said a fall in fuel costs was chiefly
responsible for the improved results.
“We will however not be misled by that,
since we assume that the price level for
airline tickets will not recover.”
Lufthansa is battling increasing com-
petition from low-cost, budget carriers
in Europe and also faces pressure on
routes to Asia from carriers based in the
Middle East such as Emirates.
The German aviation group views
lower fuel costs as a “double-edged”
sword because it is likely in the medium
term to hinder consolidation and bring
additional airline capacity into the mar-
ket, thus depressing prices.
Ryanair has identified Germany as a
key growth market and from this winter
will offer a four times daily service
between Berlin and Cologne — one of
Lufthansa’s major domestic routes.
The German airline has responded
with a new price system for domestic
and European routes which will allow
customers who do not wish to check a
Lufthansa has introduced a new
price system for European routes
bag to obtain a lower fare, thus bringing
it more into line with budget carriers.
Lufthansa is also preparing to launch
a low-cost airline called Eurowings on
non-hub routes in Europe. Eurowings
will have lower operating costs than the
flagship Lufthansa brand because it is
not bound by trade union wage agree-
ments. Lufthansa pilots have repeatedly
gone on strike over the low-cost plans.
The group’s pension deficit soared in
the first three months of the year due to
the low interest rate environment which
has raised the cost of funding retirement
benefits for companies.
But in the second quarter a rise in cor-
porate bond yields enabled the airline to
apply a much higher discount rate,
which is the rate used to value retire-
ment benefits. Therefore its pension
deficit declined from €10.2bn to €6.6bn
quarter-on-quarter and the equity ratio
— an indicator of leverage and the pro-
portion of assets financed by sharehold-
ers rather than debt — more than dou-
bled to 17.5 per cent in the same period.
Lufthansa reiterated its full-year goal
to achieve more than €1.5bn in adjusted
operating profit before strike costs.
20
Amazon’s first challenge: to deliver Clarkson’s steak and chips
Henry
Mance
Amazon and Jeremy Clarkson are a
perfect match. Amazon has just started
delivering food, and all Jeremy wanted
— before he punched a BBC producer —
was steak and chips.
But what about on screen? Will the
spirit of Top Gear rise again? Will Brits
regain the blokeish temple that BBC
suits so cruelly closed?
Lombard has used Amazon’s video
service, on which Clarkson and co will
launch a car show next year. The
delightful drama Transparent is
recommended — it even won the
Golden Globe for best comedy series,
despite not being a comedy. Sadly,
other offerings are limited.
Of course Amazon — and Netflix and
BT — are not trying to offer dozens of
wondrous shows. Their TV packages
are priced at less than £10 a month,
cheaper than music service Spotify, so
Energy
Centrica cuts 6,000 jobs to focus on supply
Change of strategy aims
to halt shares slide at
British Gas owner
GUY CHAZAN — LONDON
British Gas owner Centrica is to cut
6,000 jobs as it embarks on a strategy of
downsizing its oil and gas production
business and focusing on energy supply.
Iain Conn, who took over as chief
executive at the start of the year, said
yesterday that the company planned to
“focus our growth ambitions on our
customer-facing activities”.
Centrica is aiming to raise up to £1bn
over the next two years from the sale of
wind farms and some of its exploration
and production assets. This marks a big
change from the strategy pursued by Mr
Conn’s predecessor, Sam Laidlaw, who
invested heavily in Centrica’s upstream
oil and gas business.
It comes after a six-month strategic
review announced by Mr Conn in Janu-
ary designed to halt the decline at Cen-
trica, which slumped to a £1bn net loss
in 2014 and has seen its shares slide by
nearly a third over the past two years. In
February Centrica cut its dividend for
the first time since it was created in 1997,
as it sought to protect its credit rating
amid a sharp fall in oil and gas prices.
Yesterday, Centrica reported adjusted
group operating profit of £1bn in the six
months to June 30, down 3 per cent
compared with the same time last year.
Operating profit at retail arm British
Gas rose 44 per cent to £656m.
Peter Atherton, analyst at Jefferies,
said implementation of Centrica’s strat-
egy “will be challenging with no guaran-
tee of success”, adding: “But Centrica’s
management have at least now given
shareholders a plausible business plan
that offers a chance that the business
can survive, and possibly flourish.”
Some investors appeared uncon-
vinced, with Centrica’s shares closing
down 2.4 per cent at 268.6p.
The strategy reflects a trend of big
European utilities struggling to reinvent
themselves amid falling power prices,
lower energy consumption and more
competition from independent suppli-
ers. Many are choosing to build their
Media
BT adds 60,000 television customers in first quarter ahead of sports rollout
ROBERT COOKSON
BT’s television business saw its best
performance in nearly two years in the
first quarter, adding 60,000 customers
before the launch of its expanded
sports offerings including European
Champions League football.
The company has been investing heav-
ily in sports rights in order to challenge
Sky in the pay-TV market and to bolster
its broadband business. It said daily
viewing figures for BT Sport were up 50
per cent in the three months to June.
Gavin Patterson, chief executive, said:
“This is an exciting time at BT.” He
viewers are not bothered if they don’t
use them much. The services just need
two or three big shows to make
subscribers sign up in the first place.
Not Top Gear, Honest — or whatever it
is eventually called — will certainly give
Amazon some Prime subscribers, who
will order more knick-knacks as a
result. But the $250m price tag
demands a mega-hit. And the risk is
that Clarkson’s voice will be drowned
out by the broader national debate.
Top Gear’s antics were remarkable
partly because they were on the BBC in
prime time. Online there are thousands
of people flagrantly insulting Mexicans;
on broadcast TV it was only Clarkson
and Donald Trump.
Centrica College on
the polytechnic path
Have a good summer holiday — and, by
the way, you’re sacked.
That is the happy message from
energy companies Shell and Centrica to
swaths of their staff.
But as Centrica’s chief executive Iain
Centrica, owner of British Gas, and other big European utilities are struggling to reinvent themselves as energy consumption falls — Paul Hackett/Bloomberg
Centrica earnings
Group operating profit (£bn)
3 Mr Conn said there were 25 energy
Forecast
2 websites, making it “hard to hang on to
1 45,000 residential customers in the first
0 the biggest energy supplier to UK
-1
-2
2009 10 11 12 13 14 15
Source: Bloomberg
hailed the rise in its TV customer base to
1.2m and signs of a strong start to its
mobile offerings.
BT, which entered the mobile market
in March through a virtual network
agreement with EE, signed up more
than 100,000 consumer mobile custom-
ers in the first three months without any
advertising. The company also agreed
this year to buy EE, the UK’s largest
mobile group, for £12.5bn.
However, group revenue fell 2 per
cent to £4.28bn in the quarter, slightly
below analyst expectations. Revenues
were flat on an underlying basis,
marking an improvement on the 1.3
★ FINANCIAL TIMES
UK COMPANIES
Conn announced 6,000 job losses
yesterday morning, it was plain to all
that he is not a ruthless cost-cutter.
Mr Conn is simply an old-fashioned
headmaster: bringing discipline to a
school whose liberal stance, however
well meaning, has left it stretched.
For too long, Centrica College has
prioritised peripheral subjects such as
exploration and production, which
involve tiring class trips to Trinidad &
Tobago and Canada.
Those subjects will still be offered,
but the focus will be on energy supply,
services, distribution, trading and
smart homes. The shift hurts Mr Conn
more than it hurts the pupils, because
he is an ex-oil and gas man himself.
Isn’t this rather an overreaction to
the falling oil price, sir? Crude prices
may have surged by 2020 when the
restructuring is due to complete.
“Enough of your cheek,” Mr Conn
wanted to reply, but he settled for an
explanation of Centrica’s long tradition
as a consumer-facing company (since
1812, no less), and its more recent
tradition of having £4.9bn in net debt.
One journalist asked if the new
curriculum vindicated former Labour
energy services businesses, which
involve helping corporate and retail cus-
tomers cut fuel consumption, often
through efficiency savings.
suppliers in the UK and 15 switching
customers”. He said British Gas had lost
half of the year, although it remained
homes, with 28m accounts.
He said Centrica had tightened its
focus on energy supply and services, dis-
tributed power, and energy marketing
and trading. It will also concentrate on
the “connected home” — a programme
to install devices such as smart thermo-
per cent decline in the previous quarter.
Adjusted profit before tax rose 9 per
cent to £694m, ahead of consensus fore-
casts of about £683.
Mr Patterson said that the “financial
results show we’re on track to achieve
our outlook for the full year”.
BT’s consumer business reported its
sixth consecutive quarter of revenue
and profit growth, with a 7 per cent
increase in broadband and TV sales. The
company added 85,000 retail broad-
band customers, representing 57 per
cent of the net additions to the UK’s DSL
and fibre broadband market.
Revenues at Openreach, a unit of BT
leader Ed Miliband, who hinted at
splitting up energy suppliers. Mr Conn’s
cane twitched. “This is the 52nd
government that Centrica has dealt
with. If it had been a Labour
government, we’d have dealt with it.”
Parents — otherwise known as
investors — have been itching for
change at Centrica. But its shares fell
further yesterday, perhaps on the
realisation that the days of high
margins are over and once-prized
assets may be sold cheaply. In other
words, the school’s sights are no longer
set on Oxford and Cambridge; they are
competing for the local polytechnic.
Chime or reason
So another US private equity group is
buying one of the London Stock
Exchange’s ugly ducklings.
But Providence/Chime
Communications (yesterday) is more
fun than property developer Lone
Star/Quintain (Wednesday), despite
being half the size at about £350m.
Like most media deals, this one has
personalities. Chime was set up by
stats at customers’ homes to give them
greater control over their energy use.
Mr Conn said Centrica would be
investing an additional £1.5bn over the
next five years in these businesses, and
£1.5bn less in its exploration and pro-
duction and power generation arms.
He said the upstream business would
produce 40m-50m barrels of oil and gas
a year, down from 75m to 80m barrels a
year in 2013 and 2014. It would con-
sume £400m-£600m a year in capital
spending, down from £1.1bn in 2014. He
refused to say where cuts would fall.
Centrica said it would target cost effi-
ciencies of £750m over five years. It
would shed 6,000 jobs from its nearly
37,500 staff, half through redundancies
that operates the national broadband
network, were flat at £1.25bn,
depressed by regulatory price changes.
BT is fighting its rivals over requests
that Ofcom should force it to split off
Openreach. The telecoms regulator this
year opened its biggest “strategic
‘Results show we’re on
track to achieve our
outlook for the full year’
Gavin Patterson, chief executive
Margaret Thatcher’s PR guru Lord Bell.
(No, he did not represent Augusto
Pinochet; his contract was with the
Pinochet Foundation.) He exited in
2012, selling his shares for 147p each.
These days Chime is focused on
fashionable sports marketing, rather
than plain PR. So its remaining
investors stand to receive 365p a share
from Providence. The offer will almost
certainly be backed by Chime bosses,
perhaps in hope that the new owners
may finance an acquisition spree.
The big question is over Lord Bell’s
occasional nemesis, Sir Martin Sorrell.
His ad group WPP once threatened to
sell its 20 per cent stake but is now
likely to stay aboard. Sir Martin’s
sporting endeavours include a
directorship at Formula One, a new
WPP sports rights agency, and an
annual stint opening the batting at a
cricket match at Goodwood.
Will Chime eventually become a
WPP bauble? Providence is paying
16 times next year’s forecast profits.
Sir Martin would be unwise to pay
more next time Chime comes around.
henry.mance@ft.com
and half through attrition, but create
2,000 new ones. The net effect would be
a headcount reduction of 4,000. Some
5,000 of the job cuts would be in the UK.
Trade union Unison said: “The huge
job cuts announcement at Centrica is a
major blow for workers. Unison will do
everything in its power to . . . fight any
compulsory redundancies.”
Profit at the residential energy supply
business nearly doubled to £528m in
the first half of the year. Centrica said
the earnings, which came despite a 10
per cent cut in residential gas tariffs
since the start of 2015, reflected how the
first half of this year was colder than
2014, leading to higher consumption.
See Lombard
review” of the UK’s digital communica-
tions market in a decade, seeking to pro-
mote competition and investment.
Mr Patterson said yesterday that BT
had “invested further in improving cus-
tomer service and Openreach is running
ahead of all 60 minimum service levels
set by Ofcom for this year”. He added BT
is “engaging” with Ofcom as part of its
strategic review, “which offers scope for
deregulation and the potential to create
a more level playing field in pay-TV”.
BT also faces regulatory scrutiny over
its agreement to buy EE, which is
opposed by rivals.
See Lombard
Friday 31 July 2015
City
Insider
Edited by
Harriet Agnew
harriet.agnew@ft.com
Barclays
Spin wars
Two of the City’s heavyweight spin-
doctors are going head to head in a
battle to advise Barclays on
communications.
Brunswick chairman Sir Alan
Parker has been the bank’s main
adviser for two decades. But his
rival Finsbury chairman Roland
Rudd (pictured) was brought in by
John McFarlane, Barclays new
chairman, to handle the removal of
Antony Jenkins as chief executive
and this week’s quarterly results.
Mr McFarlane’s own appointment
had leaked, and he wanted
absolute secrecy. The chairman
also cited Sir Alan’s annual fishing
trip to Iceland last week.
City Insider’s fly on the wall
thinks Sir Mike Rake, the outgoing
deputy chairman, played a key role.
He is close to Mr Rudd and viewed
Sir Alan as too close to Mr Jenkins.
One insider said that having both
PRs working for the bank was like
“trying to ride two bucking
broncos”.
Now the bank is putting the
mandate up for tender in the
autumn. Let the spinning begin.
Stephen Hester
Tough timing at RSA
RSA boss Stephen Hester’s head
must be reeling. A few months back
he was positioning for the top job
at Standard Chartered, City Insider
hears. Now that job has been filled
and the potential merger between
Zurich and RSA could put the
Briton back on the jobs market.
Martin Senn, Zurich’s chief
executive, prides himself on his DIY
skills, after all — which presumably
extend to one of his own running
the newest wing to his empire.
If the worst does happen at
Zurich, there’s still the top job at
Barclays. Mr Hester’s name is
already being mentioned although
Mr McFarlane said on Wednesday
that international candidates are
“more fertile ground”.
If Mr Hester does part ways with
RSA this year, it might free him this
winter to show off the downhill
skiing skills he honed at his chalet
in the Swiss resort of Verbier. He
might even run into Senn, though
he prefers the flat cross-country
version. As every risk-conscious
insurance boss should.
Investment banks
Trying times
Switzerland’s investment banks put
in conspicuously profitable second
quarters, well above their thriving
US rivals, leading to some awkward
moments on the conference calls
hosted by their chief executives.
Tidjane Thiam, Credit Suisse’s
boss, was momentarily lost for
words when asked by an analyst if
he really believed his investment
bank had a return on equity of 17
per cent — far higher than the
whole group’s level of 10 per cent.
Over at UBS, Sergio Ermotti was
challenged on the 34 per cent
return on equity of the investment
bank which he has slashed in size.
If the investment bank is making
such a high return, might it not be
time to give it more freedom,
analysts asked.
The fluent German speaker
seemed briefly stunned at the
question. His answer was wordy,
but his message was crystal clear:
Nein, nein, nein.
Tribe
Nutrients for runners
Three former City types have given
up their day jobs to launch a brand
of trail mix: Tribe. It was inspired by
a 1,000-mile run that old friends
Rob Martineau, Guy Hacking and
Tom Stancliffe completed across
eastern Europe.
Subscribers receive a weekly
Tribe Pack containing the natural
energy and nutrients runners need
for training. The affirmations on
Tribe’s website could have come
right out of a McKinsey playbook:
“We always go the distance, no
matter how long it takes”.
Friday 31 July 2015
Aerospace & defence
Rolls-Royce chief defends push to diversify
Engine maker signals
investment in marine unit
as group profits shrink
PEGGY HOLLINGER — INDUSTRY EDITOR
The chief executive of Rolls-Royce,
which is reeling from four profit warn-
ings in less than 18 months, yesterday
signalled his strong support for the
engine maker’s diversification strategy.
Warren East told the Financial Times
the plan was “broadly correct” even
though it prompted shareholder criti-
cism of his predecessor John Rishton.
Financial services
Numis to offer
investors shot
at IPOs via
Crowdcube
JUDITH EVANS
The corporate broker Numis Securities
will offer retail investors access to Lon-
don initial public offerings via Crowd-
cube after buying a stake in the UK’s
biggest equity crowdfunding platform,
in the first tie-up of its kind.
Numis bought 8.49 per cent of Crowd-
cube and will gain a seat on its board
after leading a £6m funding round that
also involved Balderton Capital, already
a Crowdcube investor, and fellow ven-
ture capitalists Draper Esprit. It valued
Crowdcube at £51m.
“We think Crowdcube will have the
opportunity to democratise IPOs in the
future, and we’ll work with them to do
that so that individuals can get access to
IPOs that in the past they haven’t been
able to,” said Oliver Hemsley, Numis
chief executive.
“We think that companies will raise
money via online platforms with
increasing frequency.”
Most IPOs cannot be accessed by indi-
viduals unless the company chooses to
hold a retail offer, meaning they have to
wait to buy shares on the market after a
flotation.
Crowdcube will offer access to IPOs on
the Alternative Investment Market
(AIM) and main market of the London
Stock Exchange alongside its existing
crowdfunding offerings for start-ups.
The duo aim to launch this feature
within a year, with the minimum invest-
ment at a “very affordable level”, said
Darren Westlake, chief executive.
The partnership may prove a model
for the US, where regulations are being
developed to allow equity crowdfunding
offers to the general public. Rules that
took effect in June enable crowdfunding
“mini-IPOs” for the first time.
Numis’s fixed income team will also
work with Crowdcube to develop its
mini-bond offering, in which retail
investors lend directly to companies, Mr
Westlake said. This may include the
development of a secondary market.
Four-year-old Crowdcube, the venue
for £45m of investment so far this year,
is the largest player in the fast-expand-
ing equity crowdfunding market which
enables individuals to buy stakes in pri-
vate companies online — sometimes
putting in as little as £10.
The sector grew by an average of 410
per cent a year between 2012 and 2014,
with platforms facilitating about £84m
of investments last year, according to
Nesta, an innovation charity. But it has
faced criticisms including that inflated
valuations leave some investors
unlikely to make a return in proportion
to the risk they expose their capital to.
Pharmaceuticals
AstraZeneca lifts R&D spending in push to speed up pipeline
CLIVE COOKSON
AstraZeneca is boosting research and
development spending faster than
expected, as it seeks to propel new
drugs more quickly through its R&D
pipeline.
The drugmaker’s second-quarter
results exceeded market expectations,
with both revenues and earnings up
slightly on a constant currency basis.
However, R&D costs rose by 22 per
cent to reach 23 per cent of sales — a high
proportion even for the research-inten-
sive pharmaceutical industry.
The figures were hit by adverse
currency movements, because the
UK-based drugmaker reports in dollars.
As a result, sales were down 7 per cent at
$6.3bn and core earnings per share
down 8 per cent at $1.21 — both ahead of
analysts’ forecasts.
Mr East also left the way open for a hit
to Rolls-Royce’s earnings, as he scruti-
nises the engine maker’s operations.
He said he would not rule out new
charges as a result of the review, but
sought to reassure investors, saying any
new costs would not be “significant”.
His comments came as Rolls-Royce
reported pre-tax profit of £310m for the
six months to June 30, down 57 per cent
on the same period last year.
Rolls-Royce has been rocked by profit
warnings since February last year that
have focused on its defence, marine and
civil aerospace units.
Amid the tumult, some shareholders
Howzat for a sports marketing deal
A £350m price tag highlights
opportunity identified by
suitors WPP and Providence
ROBERT COOKSON — LONDON
Chime Communications, the marketing
services group founded in 1989 by Lord
Bell, Margaret Thatcher’s media
adviser, has long been considered a
prime takeover target. Two profit warn-
ings over the past year left it even more
vulnerable.
Yesterday, Chime’s predators were
revealed. Sir Martin Sorrell’s WPP and
US buyout group Providence Equity
Partners have teamed up to buy the
sports marketing specialist for more
than £350m. The price tag — a premium
compared to the wider sector — high-
lights how the acquirers see plenty of
opportunity in sports marketing.
Chime has cautioned that “there can
be no certainty” that a deal will happen.
But judging by the market reaction,
investors believe an acquisition seems
likely. Chime’s share price surged 26 per
cent to 346p yesterday — not far from
the 365p per share cash offer under dis-
cussion.
“It looks like a done deal,” says Mal-
colm Morgan, analyst at Peel Hunt.
WPP, the world’s largest marketing
services group, already owns a 20 per
cent stake in Chime.
The group plans to retain its share as
Pascal Soriot, the chief executive, is
keen to justify AstraZeneca’s continued
independence following its successful
defence against last year’s £69.4bn
hostile takeover bid from Pfizer of the
US. He emphasised its strong pipeline of
drugs in clinical trials, particularly for
cancer, as well as the current trading
performance.
AstraZeneca’s results echoed those of
GlaxoSmithKline, which on Wednesday
reported second-quarter figures. Both
beat market expectations with presen-
tations that emphasised the pipeline of
products waiting to emerge from their
labs, which they hope will end years of
underperformance compared with the
pharmaceutical sector as a whole.
“This represents six successive quar-
ters of top-line growth,” Mr Soriot said,
adding: “The initiatives introduced to
increase efficiency are starting to reduce
★ FINANCIAL TIMES
UK COMPANIES
questioned Rolls-Royce’s diversification
away from its core aerospace business
into marine and other power systems.
“I believe that strategy is broadly
correct,” said Mr East. “We are a power
systems business. There are engineering
and operational synergies.”
The marine business, which is suffer-
ing from the downturn in the offshore
oil and gas industry “has probably been
underinvested in”, Mr East said. “Proba-
bly we need to increase the competitive-
ness of that business with increased
research and development spending.”
Rolls-Royce has been criticised for
withdrawing from the booming market
Media. Pitch to tie-up
part of the deal with Providence.
“The interesting question,” says Mr
Morgan, is whether WPP will take full
control of Chime by buying out Provi-
dence when the private equity group is
ready to sell.
Sport has become one of the sectors
that the marketing industry is most
excited about. Even as other areas of the
media landscape fragment, big sporting
events still attract large, passionate
audiences — and, therefore, attractive
opportunities for marketers. Brand
sponsorship of events is harder for view-
ers to ignore than conventional adver-
tising.
“In an online world, having your
brand attached to a football player or on
a Formula One car is very attractive,”
explains Simon Davies, a media analyst
at Canaccord. “Chime has something
that WPP needs: critical mass in sports
marketing.”
Though Chime was originally focused
on public relations and advertising, that
has shifted to sports over the past dec-
ade under Christopher Satterthwaite,
chief executive. This transformation
accelerated in 2012, after Lord Bell
resigned as a director of the group fol-
lowing the management buyout of his
public relations outfit Bell Pottinger.
Through a series of acquisitions, Mr
Satterthwaite has built Chime into a big
player in sports marketing, with opera-
tions in most popular sports, including
golf, rugby and tennis. Chime’s sports
marketing division, which last year gen-
costs, supporting our continued strate-
gic investment in science and the accel-
eration of our pipeline.”
He promised “continued strong news
flow in our science-led pipeline in sec-
ond half 2015”, while emphasising the
pace of progress in oncology, with new
approvals for Iressa (lung cancer) and
Faslodex (breast cancer) and regulatory
submissions for AZD9291 (lung cancer)
and cediranib (ovarian tumours).
Mondher Mahjoubi, AstraZeneca’s
head of oncology, said that the top
corporate priority was lung cancer,
which kills 1.6m people a year world-
AstraZeneca’s
research and
development costs
rose by 22 per cent
to reach 23 per
cent of sales
for single-aisle passenger aircraft,
instead focusing on the lower volume
but higher margin wide-body segment.
Mr East said a strategic review would
be undertaken to consider the future
focus of the group in 12 to 18 months.
While the review was carried out, Mr
East said he would focus on operational
performance and said he would update
investors by the end of the year.
Investors seemed relieved that Rolls-
Royce maintained the guidance it gave
two weeks ago for pre-tax profit this
year of between £1.33bn and £1.48bn.
“The guidance still leaves Rolls
with a lot to do in the second half,”
Profile
Lord Coe brings winning
ways to the sports table
Lord Coe, the former Olympian,
pictured below, sold his sports
consultancy to Chime in 2013 for as
much as £12m.
He is now executive chairman of
Chime’s sports division, where he
combines his expertise in politics and
sports to help the business grow.
As the man who led the pitch to host
the London 2012 Olympics and was
chairman of the body that managed
the games, he is seen as having the
expertise to win bids for sporting
events by using his political nous to
manage complex processes.
Lord Coe set 12 world records during
his athletic career, and won gold in the
1500m and silver in the 800m at the
Olympic Games in Moscow in 1980.
After retiring from athletics in 1990,
he became a Conservative MP and
private secretary to William Hague, the
former party leader.
Lord Coe is also vice-president of
the International Association of
Athletic Federations (IAAF),
the governing body for
the sport of athletics.
wide, more than any other tumour. The
drugmaker is developing nine products
to treat different stages of lung cancer
and the various genetic forms of the dis-
ease, individually and in combination.
But the product causing most excite-
ment is AZD9291 — yet to receive a
proper name — which the company dis-
covered in-house and is rushing through
the pipeline at record speed. It began
clinical testing in lung cancer patients
just over two years ago and has already
been submitted for regulatory approval.
The company raised its guidance for
total revenues for the year 2015 to a
“low single-digit per cent” decline, from
the previous “mid single-digit”.
It still expects earnings per share to
increase at low single-digit per cent, an
unchanged forecast that reflects
accelerated spending on research and
development.
said RBC Capital analyst Rob Stallard.
Rolls-Royce shares rose 2.6 per cent to
749.5p in London yesterday.
Underlying profits fell 32 per cent to
£439m in the first half, on revenue
down 3 per cent to £6.3bn. Despite the
decline, the dividend was increased
3 per cent to 9.27p.
The latest profit warning reflected the
difficult transition by Rolls-Royce from
its Trent 700 engines that power the
Airbus A330 to the new Trent 7000 that
will go on a new jet, the A330 Neo.
The pain was also a good sign, said Mr
East. “The rollout of new engines will
significantly grow our market share.”
Catch! England v
Australia Test at
Edgbaston this
summer — Philip Brown
Livepic/ Reuters
erated 43 per cent of the group’s £300m
of revenues, is chaired by Lord Coe, who
led London’s successful bid for the 2012
Olympic Games.
Though WPP and Providence
declined to comment on their plans,
analysts say there is an opportunity to
combine Chime’s sports division with
some of their existing assets.
Providence, with $40bn in assets
under management, already has a port-
folio of sports-related investments,
namely: Learfield Sports, a US college
sports rights and marketing agency;
Yankees Entertainment & Sports Net-
work, a television network associated
with the New York Yankees baseball
team; and Ironman, an international tri-
athlon competition.
WPP has also shown its appetite to
bulk up in sports. In January, it invested
in Bruin Sports Capital, which aims to
spend $250m buying sports rights.
In May, WPP set up a sports agency
called ESP to represent the likes of the
Cleveland Cavaliers basketball team,
Manchester City, and the England and
Wales Cricket Board.
Sir Martin, speaking last year, asked
rhetorically: “How far can investment
in sport go?” The answer was
simple: “much further”.
Mr Morgan says: “I assume
in three or four years’ time we’ll
be looking at a potential IPO
of a materially bigger busi-
ness. I won’t be burning
my Chime files just yet.”
21
Automobiles
Delphi buys
peer for £1.1bn
in wider push
into future tech
ANDY SHARMAN
MOTOR INDUSTRY CORRESPONDENT
UK car parts maker Delphi Automotive
is to buy British peer HellermannTy-
ton in a £1.1bn deal, part of a series of
moves announced by the tech-focused
supplier yesterday.
The takeover is the latest in a string of
deals among car industry suppliers as
they seek scale to serve global vehicle
manufacturers by snapping up the best
future car technology.
Delphi, headquartered in Gillingham,
Kent, but listed in the US and run from
Michigan, is to buy HellermannTyton
for 480p a share — a 44.5 per cent pre-
mium to the closing price the day before
— in an all-cash transaction.
HellermannTyton, which had a mar-
ket cap of £715m at Wednesday’s close
versus Delphi’s $22.3bn, makes prod-
ucts for protecting, routing and fasten-
ing cables. Based in Crawley, it supplies
Volvo, BMW and Delphi as well as aero-
space companies.
Delphi is one of the world’s largest
parts suppliers. Once part of General
Motors, it wants to capitalise on a shift
towards greater connectivity in vehi-
cles, as well as the rise of the autono-
mous car.
That was underlined yesterday, when
Delphi also announced the acquisition
£715m $22.3bn
Market cap of Market cap of
HellermannTyton Delphi at
at Wednesday’s Wednesday’s
close close
of Ottomatika, a Pittsburgh-based soft-
ware company that helped Delphi com-
plete a self-driving coast-to-coast road
trip in the US in April.
Delphi has also entered into a strate-
gic collaboration with Quanergy of Cali-
fornia, which makes 3D lidar sensors —
used to power advanced driver assist-
ance systems, autonomous cars and
high-definition maps.
“Delphi is certainly working on trans-
forming the whole company into the
‘my dream car’ supplier,” said Chris
McNally, analyst at Evercore ISI.
Not satisfied with three big announce-
ments, Delphi also flagged a minority
investment in Tula Technology, which
uses software to boost the fuel efficiency
of engines, and said it would divest its
automotive antennas business to North-
east Industries, a Chinese supplier.
The HellermannTyton deal — the
only transaction for which financial
details were released — is based on the
logic that the era of the connected car
calls for more and more electrical archi-
tecture in vehicles.
Kevin Clark, Delphi chief executive,
said: “With consumers now demanding
more connectivity in their vehicles,
electrical architecture is the enabler of
that added vehicle content.”
Shares in HellermannTyton — taken
public by former private equity owner
Doughty Hanson in 2013 at 195p — rose
42 per cent to 472.1p.
The deal implies an enterprise value
for HellermannTyton of 14.7 times last
year’s earnings before interest, tax,
depreciation and amortisation.
Delphi’s shares, which have risen 16
per cent over the past year, fell 2 per cent
in early New York trading.
22 ★★★ FINANCIAL TIMES Friday 31 July 2015

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.03% -0.49% -0.11% -0.907% -0.256% -0.709% -0.84% -0.25%

No change
0.33% 0.57% 0.62% 1.08% 0.416%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World Jul 01 - Jul 30 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,108.63 14,553.33 6,668.87 20,522.83 2,097.89
14,382.78 6,608.59 11,180.50 11,257.15 20,235.73
2,063.11
2,019.03
Day 0.00% Month 2.48% Year 7.04% Day 0.57% Month -1.17% Year -7.36% Day 0.57% Month 2.37% Year -1.44% Day 0.40% Month 2.85% Year 17.34% Day 1.08% Month 2.05% Year 31.40% Day -0.91% Month -2.01% Year -2.08%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
5,128.78 26,250.03
1,571.22 11,168.60
44,928.52 1,533.89 10,911.50 3,317.33
4,986.87 44,373.31 24,497.98
3,249.52
Day 0.33% Month 3.43% Year 15.44% Day -0.22% Month -1.51% Year 0.14% Day 0.62% Month 4.00% Year 14.93% Day -1.01% Month 2.90% Year 2.45% Day -0.49% Month -5.66% Year -0.58% Day -1.05% Month -0.93% Year 11.76%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
52,757.54 5,046.42 23,396.09 4,053.70
17,619.51 17,745.98 22,943.64 28,020.87
4,883.19 3,705.77
49,897.40 27,705.35

Day -0.03% Month 0.85% Year 4.93% Day -0.69% Month -6.00% Year -12.27% Day 0.58% Month 3.63% Year 15.60% Day 0.63% Month 4.16% Year 12.01% Day -2.20% Month -8.57% Year 69.74% Day 0.51% Month 0.22% Year 6.59%

Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29 Country Index Jul 30 Jul 29
Argentina Merval 11224.56 11313.70 Cyprus CSE M&P Gen 76.56 76.94 Italy FTSE Italia All-Share 25100.77 24959.51 Philippines Manila Comp 7510.39 7482.83 Taiwan Weighted Pr 8651.49 8563.48 Cross-Border DJ Global Titans ($) 241.80 242.05
Australia All Ordinaries 5653.10 5609.60 Czech RepublicPX 1030.69 1026.55 FTSE Italia Mid Cap 34824.11 34794.18 Poland Wig 52011.81 52288.10 Thailand Bangkok SET 1417.49 1408.07 Euro Stoxx 50 (Eur) 3583.79 3575.53
S&P/ASX 200 5669.50 5624.20 Denmark OMXC Copenahgen 20 1006.36 1013.24 FTSE MIB 23396.09 23248.90 Portugal PSI 20 5739.69 5698.99 Turkey BIST 100 78079.76 78024.02 Euronext 100 ID 983.50 980.39
S&P/ASX 200 Res 3207.80 3147.30 Egypt EGX 30 8105.69 7949.89 Japan 2nd Section 5070.67 5080.82 PSI General 2637.49 2616.61 UAE Abu Dhabi General Index 4821.99 4854.63 FTSE 4Good Global ($) 5734.12 5738.61
Austria ATX 2481.28 2481.98 Estonia OMX Tallinn 873.53 876.98 Nikkei 225 20522.83 20302.91 Romania BET Index 7606.54 7556.44 UK FT 30 2933.90 2935.70 FTSE All World 280.47 280.79
Belgium BEL 20 3726.85 3719.38 Finland OMX Helsinki General 8634.06 8519.45 S&P Topix 150 1378.27 1365.04 Russia Micex Index 1636.72 1622.32 FTSE 100 6668.87 6631.00 FTSE E300 1571.22 1561.48
BEL Mid 6132.95 6139.63 France CAC 40 5046.42 5017.44 Topix 1647.21 1633.94 RTX 867.74 865.84 FTSE 4Good UK 6026.83 5994.08 FTSE Eurotop 100 3147.34 3124.93
Brazil Bovespa 49897.40 50245.15 SBF 120 3958.90 3941.10 Jordan Amman SE 2125.72 2130.17 Saudi-Arabia TADAWUL All Share Index 9098.27 9107.39 FTSE All Share 3635.28 3618.45 FTSE Global 100 ($) 1357.04 1358.27
Canada S&P/TSX 60 848.03 842.15 Germany M-DAX 20564.65 20545.58 Kenya NSE 20 4605.25 4532.28 Singapore FTSE Straits Times 3249.52 3284.00 FTSE techMARK 100 3884.70 3873.52 FTSE Gold Min ($) 863.74 845.92
S&P/TSX Comp 14382.76 14301.80 TecDAX 1761.52 1769.48 Kuwait KSX Market Index 6253.71 6245.03 Slovakia SAX 250.86 251.79 USA DJ Composite 6238.57 6233.79 FTSE Latibex Top (Eur) 2968.90 2969.10
S&P/TSX Met & Min 519.75 547.22 XETRA Dax 11257.15 11211.85 Latvia OMX Riga 442.70 441.28 Slovenia SBI TOP 744.13 741.26 DJ Industrial 17745.98 17751.39 FTSE Multinationals ($) 1557.85 1545.68
Chile IGPA Gen 18484.52 18368.63 Greece Athens Gen 797.52 797.52 Lithuania OMX Vilnius 499.57 499.13 South Africa FTSE/JSE All Share 51774.41 51598.54 DJ Transport 8419.78 8420.87 FTSE World ($) 496.53 497.05
China FTSE A200 9873.93 10163.06 FTSE/ASE 20 241.22 237.38 Luxembourg LuxX 1608.79 1611.82 FTSE/JSE Res 20 36107.04 35800.26 DJ Utilities 578.88 575.20 FTSEurofirst 100 (Eur) 4491.69 4458.41
FTSE B35 10940.14 11222.24 Hong Kong Hang Seng 24497.98 24619.45 Malaysia FTSE Bursa KLCI 1699.92 1698.99 FTSE/JSE Top 40 46302.48 46108.87 Nasdaq 100 4598.59 4581.60 FTSEurofirst 80 (Eur) 4784.43 4770.02
Shanghai A 3882.03 3969.28 HS China Enterprise 11137.33 11273.69 Mexico IPC 44373.31 44471.29 South Korea Kospi 2019.03 2037.62 Nasdaq Cmp 5128.78 5111.73 MSCI ACWI Fr ($) 425.64 422.25
Shanghai B 357.54 366.28 HSCC Red Chip 4402.41 4385.72 Morocco MASI 9723.10 9723.19 Kospi 200 243.61 245.97 NYSE Comp 10881.75 10883.91 MSCI All World ($) 1760.69 1747.06
Shanghai Comp 3705.77 3789.08 Hungary Bux 22537.66 22321.54 Netherlands AEX 495.17 489.29 Spain IBEX 35 11168.60 11282.90 S&P 500 2108.63 2108.57 MSCI Europe (Eur) 1511.45 1506.51
Shenzhen A 2226.24 2300.33 India BSE Sensex 27705.35 27563.43 AEX All Share 751.08 743.82 Sri Lanka CSE All Share 7332.05 7313.97 Wilshire 5000 22205.86 22192.39 MSCI Pacific ($) 2447.84 2441.28
Shenzhen B 1231.34 1251.40 S&P CNX 500 7019.60 6974.15 New Zealand NZX 50 5891.85 5870.77 Sweden OMX Stockholm 30 1603.50 1597.86 Venezuela IBC 15473.33 15537.75 S&P Euro (Eur) 1577.29 1572.88
Colombia COLCAP 1325.32 1297.62 Indonesia Jakarta Comp 4712.49 4721.12 Nigeria SE All Share 30510.95 30614.81 OMX Stockholm AS 526.52 524.74 Vietnam VNI 626.57 624.70 S&P Europe 350 (Eur) 1612.51 1601.93
Croatia CROBEX 1800.47 1798.37 Ireland ISEQ Overall 6449.57 6427.75 Norway Oslo All Share 687.49 683.28 Switzerland SMI Index 9397.69 9387.97 S&P Global 1200 ($) 1943.22 1941.60
Israel Tel Aviv 100 14.83 14.77 Pakistan KSE 100 35887.66 35699.75 Stoxx 50 (Eur) 3439.25 3415.34
(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 Jul 30 %Chg %Chg Jul 30 %Chg %Chg Jul 30 %Chg %Chg Jul 30 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Facebook Class A 81.7 95.21 -1.78 Glaxosmithkline 218.3 1389.00 14.50 Amadeus It 668.7 39.86 0.13 Tokyo Electric Power ,orporated 1414.5 838.00 40.00 Rsa Insurance 517.00 16.4 18.9 Hellermanntyton 470.50 41.1 49.4 Chime Communications 345.25 25.8 21.6 Automobiles & Parts 7385.95 4.9 -8.1
Apple 39.1 122.37 -0.62 Bg 209.4 1079.50 39.50 Santander 564.1 6.28 -0.22 Mizuho Fin,. 545.3 268.00 5.60 Hikma Pharmaceuticals 2405.00 15.6 21.5 Greggs 1341.00 12.7 83.2 Quintain Estates And Development 131.25 22.1 37.8 Oil Equipment & Services 17379.56 4.0 5.9
Amazon.com 20.0 536.76 7.76 Royal Dutch Shell 168.9 1861.00 84.00 Royal Dutch Shella 456.9 26.35 1.24 Mitsubishi Ufj Fin,. 532.5 893.20 14.40 Gkn 315.90 4.8 -8.2 Domino's Pizza 885.00 10.6 26.0 Liontrust Asset Management 374.75 12.5 37.8 Tobacco 44781.71 3.6 10.3
Microsoft 18.5 46.88 0.59 Royal Dutch Shell 168.2 1839.00 74.50 Bbva 446.6 9.27 -0.04 Hitachi, 522.8 784.60 48.00 British American Tobacco 3740.00 4.5 6.9 Drax 288.90 10.5 -37.3 Fdm (holdings) 459.00 12.0 31.3 Electronic & Electrical Equip. 4298.27 3.6 6.7
Procter & Gamble 17.1 77.39 -3.23 British American Tobacco 161.5 3740.00 59.50 Deutsche Bank Ag Na O.n. 438.5 30.26 0.00 Canon . 502.0 3927.00 -38.50 Vodafone 241.05 3.9 8.3 Laird 400.10 10.3 28.6 Games Workshop 555.00 7.2 6.7 Mobile Telecommunications 5443.79 3.4 8.3
Netflix 15.8 111.56 4.48 Bp 141.9 401.00 2.40 Siemens Ag Na 391.0 92.48 0.00 Japan Tobacco . 490.2 4765.50 107.50 Royal Dutch Shell 1861.00 3.5 -16.7 Virgin Money Holdings (uk) 419.70 7.6 45.7 Photo-me Int 150.25 5.3 6.7 Nonlife Insurance 2312.17 2.9 19.5
Gilead Sciences 14.0 117.90 2.19 Lloyds Banking 140.7 86.02 0.42 Eni 367.3 15.92 0.08 Fast Retailing Co., 456.9 61930.00 1700.00 Intercontinental Hotels 2743.00 3.4 5.7 Tate & Lyle 544.00 7.3 -9.8 Stobart Ld 111.50 4.9 2.1 Oil & Gas Producers 6606.88 2.3 -7.2
Google Class A 13.1 664.56 3.13 Astrazeneca 139.5 4319.50 128.50 Renault 339.6 83.13 -7.22 Toyota Motor 454.2 8163.00 51.00 Royal Dutch Shell 1839.00 3.1 -14.6 Bwin.party Digital Entertainment 113.70 6.3 -3.5 Ferrexpo 58.50 4.9 10.4 Household Goods 15883.29 1.7 24.2
Whole Foods Market 12.7 36.08 -4.74 Royal Bank Of Scotland 130.8 342.40 -10.80 Ab Inbev 334.6 109.15 -4.30 Nomura Holdings, . 441.5 891.40 31.00 Next 7885.00 3.0 15.6 Card Factory 339.90 5.1 20.1 Ite 184.75 4.7 15.5 Pharmaceuticals & Biotech. 13107.55 1.4 3.2
Baidu 12.2 174.47 4.46 Hsbc Holdings 127.6 577.10 0.60 Total 323.3 44.96 0.64 Fanuc 434.8 20745.00 45.00 Intertek 2438.00 2.9 4.5 Informa 584.50 5.0 24.2 Energy Assets 560.00 4.7 24.4 Health Care Equip.& Services 6804.34 1.2 0.9
Reckitt Benckiser 6104.00 2.8 17.2 Amec Foster Wheeler 834.00 4.6 -2.2 Flybe 93.75 4.2 -15.5 Electricity 8809.81 1.2 -9.9
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Bg 1079.50 2.5 24.8 hcape 802.00 4.4 10.6 Soco Int 159.25 4.1 -47.5 Industrial Engineering 8347.52 0.8 -5.5
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Western Digital 86.44 7.69 9.77 Hellermanntyton 470.50 138.40 41.67 Safran 67.51 6.16 10.04 Hino Motors, 1591.00 102.00 6.85 Babcock Int 985.50 -7.6 -6.9 Lonmin 53.80 -28.7 -69.7 Xchanging 97.50 -18.4 -37.3 Industrial Metals 978.96 -9.6 -35.3
Wynn Resorts Ltd 104.12 8.09 8.42 Laird 400.10 50.30 14.38 Nokia 6.43 0.45 7.53 Hitachi, 784.60 48.00 6.52 Antofagasta 580.50 -7.6 -22.9 Premier Farnell 134.20 -19.6 -23.8 Hochschild Mining 78.25 -8.7 -11.1 Industrial Transportation 2918.26 -3.8 3.2
Vertex Pharmaceuticals 135.46 9.84 7.83 hcape 802.00 49.50 6.58 Legrand 55.80 3.73 7.16 Sumitomo (sumitomo Shoji Kaisha,) 1418.00 86.00 6.46 Easyjet 1644.00 -6.1 -1.6 Intermediate Capital 572.00 -16.0 6.6 Enquest 37.00 -8.6 4.2 Beverages 14060.47 -3.3 -0.5
Nxp Semiconductors N.v. 97.87 6.07 6.61 Bodycote 682.50 32.50 5.00 Alcatel-lucent 3.45 0.18 5.64 Showa Shell Sekiyu K.k. 1170.00 68.00 6.17 Compass 1031.00 -6.0 -6.4 Aggreko 1215.00 -15.0 -19.2 Anglo-eastern Plantations 595.00 -8.5 7.2 Travel & Leisure 8537.46 -2.8 5.9
Air Products & Chemicals 142.34 8.20 6.11 Royal Dutch Shell 1861.00 84.00 4.73 Royal Dutch Shella 26.35 1.24 4.94 Nippon Light Metal Holdings , 211.00 12.00 6.03 Int Consolidated Airlines S.a. 542.00 -5.5 11.5 Vedanta Resources 385.00 -13.9 -33.0 Infinis Energy 139.25 -7.9 -36.7 Software & Computer Services 1522.50 -2.5 22.0
Sage 515.00 -5.2 10.6 Ladbrokes 111.50 -13.1 0.9 Biotech Growth Trust (the) 824.00 -7.9 21.5 Food & Drug Retailers 3145.98 -1.6 11.1
Downs Downs Downs Downs
Diageo 1811.00 -5.0 -2.0 Fisher (james) & Sons 1093.00 -10.6 -8.8 Gem Diamonds 126.00 -7.4 -27.9 Equity Investment Instruments 7439.18 -1.5 2.9
Qorvo 60.49 -9.99 -14.17 Talktalk Telecom 309.30 -17.10 -5.24 Renault 83.13 -7.22 -7.99 Panasonic 1447.50 -89.00 -5.79
Royal Mail 492.80 -4.2 14.6 Evraz 99.40 -10.0 -35.7 Lms Capital 73.00 -7.0 -6.4 Support Services 6947.47 -1.5 8.0
Whole Foods Market 36.08 -4.74 -11.61 Babcock Int 985.50 -53.50 -5.15 Jc Decaux Sa. 35.81 -1.58 -4.23 Nichirei 890.00 -54.00 -5.72
Glencore 211.00 -4.1 -29.4 Fidelity China Special Situations 133.50 -9.2 -0.2 Int Biotechnology Trust 581.00 -6.3 31.2 Life Insurance 7981.06 -1.5 5.8
Ensco 16.63 -1.37 -7.61 Premier Farnell 134.20 -5.80 -4.14 Natixis 6.53 -0.29 -4.20 Mitsubishi Electric 1374.00 -82.50 -5.66
Dixons Carphone 448.90 -4.1 -2.9 Barr (a.g.) 576.00 -9.0 -2.4 Jpmorgan Chinese Investment Trust 166.00 -6.2 -6.7 Mining 11289.51 -1.5 -20.8
L 3 Communications Hldgs. 114.75 -9.29 -7.49 Countrywide 531.00 -22.00 -3.98 Altice 114.50 -4.80 -4.02 Astellas Pharma . 1852.00 -78.50 -4.07
Merlin Entertainments 414.00 -4.1 3.9 Ocado 387.60 -8.4 -3.1 Pacific Horizon Investment Trust 181.63 -6.1 -0.9 General Financial 9417.28 -1.5 10.4
Range Resources 39.85 -2.79 -6.54 Vedanta Resources 385.00 -13.50 -3.39 Repsol 15.37 -0.64 -4.00 Daiichi Sankyo , 2519.50 -102.00 -3.89
Kingfisher 359.30 -4.0 5.5 Enterprise Inns 113.60 -6.8 -0.9 Petropavlovsk 5.99 -6.1 -59.4 Construction & Materials 4965.68 -1.0 20.2
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
Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change Jul 30 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 9.1825 -0.0002 10.0315 -0.0989 14.3354 -0.0368 Indonesia Indonesian Rupiah 13467.5000 11.5000 14712.6329 -132.0913 21024.9229 -35.6451 Poland Polish Zloty 3.7998 0.0588 4.1511 0.0240 5.9321 0.0768 ..Three Month 0.6405 0.0016 0.6996 -0.0051 - -
Australia Australian Dollar 1.3746 0.0063 1.5017 -0.0078 2.1459 0.0044 Israel Israeli Shekel 3.7882 0.0127 4.1385 -0.0267 5.9141 0.0049 Romania Romanian Leu 4.0332 0.0270 4.4061 -0.0136 6.2965 0.0262 ..One Year 0.6403 0.0017 0.6991 -0.0051 - -
Bahrain Bahrainin Dinar 0.3771 - 0.4119 -0.0041 0.5886 -0.0015 Japan Japanese Yen 124.3350 0.5150 135.8303 -0.7685 194.1066 0.3108 Russia Russian Ruble 59.6015 0.3560 65.1119 -0.2480 93.0474 0.3198 United States United States Dollar - - 1.0925 -0.0108 1.5612 -0.0040
Bolivia Bolivian Boliviano 6.9100 0.0100 7.5489 -0.0633 10.7876 -0.0119 ..One Month 124.3350 0.5149 135.8303 -0.7685 194.1065 0.3107 Saudi Arabia Saudi Riyal 3.7502 0.0001 4.0969 -0.0402 5.8547 -0.0148 ..One Month - - 1.0924 -0.4727 1.5611 -0.0040
Brazil Brazilian Real 3.3734 0.0342 3.6853 0.0015 5.2664 0.0401 ..Three Month 124.3348 0.5147 135.8303 -0.7685 194.1063 0.3101 Singapore Singapore Dollar 1.3758 0.0097 1.5029 -0.0041 2.1478 0.0096 ..Three Month - - 1.0923 -0.4727 1.5611 -0.0040
Canada Canadian Dollar 1.3031 0.0133 1.4236 0.0007 2.0343 0.0156 ..One Year 124.3339 0.5128 135.8303 -0.7686 194.1065 0.3087 South Africa South African Rand 12.7363 0.2360 13.9138 0.1234 19.8833 0.3186 ..One Year - - 1.0915 -0.4727 1.5609 -0.0040
Chile Chilean Peso 672.5600 6.0900 734.7412 -0.5118 1049.9727 6.8531 Kenya Kenyan Shilling 102.3000 0.6000 111.7581 -0.4378 159.7065 0.5316 South Korea South Korean Won 1168.2500 9.7500 1276.2600 -1.8029 1823.8234 10.6072 Venezuela Venezuelan Bolivar Fuerte 6.3053 0.0103 6.8882 -0.0565 9.8435 -0.0091
China Chinese Yuan 6.2096 0.0005 6.7837 -0.0662 9.6942 -0.0239 Kuwait Kuwaiti Dinar 0.3032 0.0004 0.3312 -0.0029 0.4733 -0.0007 Sweden Swedish Krona 8.6375 0.0452 9.4360 -0.0430 13.4844 0.0363 Vietnam Vietnamese Dong 21818.0000 -1.5000 23835.1750 -236.2111 34061.4537 -89.2191
Colombia Colombian Peso 2861.2250 -0.0250 3125.7580 -30.7877 4466.8262 -11.4341 Malaysia Malaysian Ringgit 3.8160 0.0050 4.1688 -0.0355 5.9574 -0.0074 Switzerland Swiss Franc 0.9697 0.0067 1.0593 -0.0030 1.5138 0.0066 European Union Euro 0.9154 0.0089 - - 1.4290 0.0103
Costa Rica Costa Rican Colon 533.4000 0.0500 582.7152 -5.6791 832.7219 -2.0462 Mexico Mexican Peson 16.4718 0.2471 17.9946 0.0955 25.7150 0.3211 Taiwan New Taiwan Dollar 31.4750 0.0330 34.3850 -0.3020 49.1375 -0.0737 ..One Month 0.9153 0.0089 - - 1.4290 0.0103
Czech Republic Czech Koruna 24.7549 0.1886 27.0436 -0.0580 38.6463 0.1967 New Zealand New Zealand Dollar 1.5195 0.0225 1.6600 0.0085 2.3722 0.0292 Thailand Thai Baht 34.9500 - 38.1813 -0.3757 54.5625 -0.1392 ..Three Month 0.9152 0.0089 - - 1.4289 0.0103
Denmark Danish Krone 6.8295 0.0663 7.4609 -0.0003 10.6619 0.0766 Nigeria Nigerian Naira 199.0000 -0.2500 217.3984 -2.4151 310.6705 -1.1839 Tunisia Tunisian Dinar 1.9771 0.0141 2.1598 -0.0056 3.0865 0.0143 ..One Year 0.9144 0.0089 - - 1.4283 0.0103
Egypt Egyptian Pound 7.8290 0.0252 8.5528 -0.0564 12.2223 0.0083 Norway Norwegian Krone 8.1681 0.0363 8.9233 -0.0478 12.7518 0.0243 Turkey Turkish Lira 2.7858 0.0263 3.0433 -0.0009 4.3490 0.0301
Hong Kong Hong Kong Dollar 7.7522 0.0006 8.4689 -0.0827 12.1023 -0.0299 Pakistan Pakistani Rupee 101.7750 -0.0200 111.1845 -1.1162 158.8869 -0.4367 United Arab Emirates UAE Dirham 3.6731 - 4.0126 -0.0395 5.7342 -0.0146
Hungary Hungarian Forint 283.0657 3.2886 309.2363 0.5849 441.9103 4.0197 Peru Peruvian Nuevo Sol 3.1920 0.0070 3.4871 -0.0265 4.9831 -0.0017 United Kingdom Pound Sterling 0.6406 0.0016 0.6998 -0.0051 - -
India Indian Rupee 64.0150 0.1588 69.9335 -0.5131 99.9376 -0.0065 Philippines Philippine Peso 45.6275 0.1025 49.8460 -0.3774 71.2318 -0.0213 ..One Month 0.6405 0.0016 0.6997 -0.0051 - -
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 Jul 30 Jul 29 Jul 28 Jul 27 Jul 24 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2933.90 2935.70 2904.80 2865.80 2907.70 0.00 3110.40 2669.30 Forestry & Paper 42.19 Personal Goods 8.19 NON FINANCIALS Index 0.54 FTSE 100 Price Change FTSE 100 Price Change
Jul 30 chge% Index Jul 29 Jul 28 ago yield% Cover ratio adj Return FT 30 Div Yield 1.71 1.72 1.73 1.75 1.74 0.00 3.93 2.74 Software & Comp Serv 24.94 Travel & Leisure 7.79 Health Care 0.49 3I Group PLC 545.00 -1.00 Land Securities Group PLC 1283 -10.00
FTSE 100 (100) 6668.87 0.57 7422.86 6631.00 6555.28 6730.11 3.64 1.53 17.91 145.19 5141.38 P/E Ratio net 26.07 26.00 25.76 25.49 25.70 0.00 19.44 14.26 Household Goods & Ho 21.05 FTSE SmallCap Index 7.79 Food Producers 0.46 Aberdeen Asset Management PLC 363.30 -4.70 Legal & General Group PLC 260.10 1.20
FTSE 250 (250) 17521.00 0.05 19501.94 17512.81 17387.89 15495.64 2.42 2.28 18.13 262.66 12064.96 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Construct & Material 20.42 Industrial Transport 7.63 Pharmace & Biotech 0.46 Admiral Group PLC 1468 -23.00 Lloyds Banking Group PLC 86.02 0.42
FTSE 250 ex Inv Co (212) 19077.93 0.09 21234.90 19060.77 18910.74 16768.18 2.44 2.39 17.18 285.03 13392.77 FT 30 hourly changes Real Est Invest & Se 20.16 Mobile Telecomms 7.50 Leisure Goods 0.38 Anglo American PLC 805.70 -7.90 London Stock Exchange Group PLC 2592 19.00
FTSE 350 (350) 3693.79 0.48 4111.42 3676.10 3636.83 3649.78 3.43 1.62 17.95 76.21 5745.24 8 9 10 11 12 13 14 15 16 High Low Nonlife Insurance 16.93 Consumer Goods 7.00 FTSE 100 Index 0.21 Antofagasta PLC 580.50 -4.50 Marks And Spencer Group PLC 533.00 2.00
FTSE 350 ex Investment Trusts (312) 3672.82 0.50 4088.07 3654.65 3614.91 3634.17 3.45 1.63 17.80 76.19 2941.00 2935.7 2933.5 2936 2941.6 2944 2940.2 2942.2 2925.5 2928.2 2956.1 2920.9 Fixed Line Telecomms 15.14 Tobacco 5.90 Chemicals -2.52 Arm Holdings PLC 1011 21.00 Meggitt PLC 455.80 0.30
FTSE 350 Higher Yield (108) 3433.85 0.81 3822.08 3406.36 3360.20 3688.63 4.99 1.35 14.85 103.44 5445.37 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Media 12.69 Life Insurance 5.56 Gas Water & Multi -6.06 Ashtead Group PLC 964.00 -1.50 Merlin Entertainments PLC 414.00 -3.60
FTSE 350 Lower Yield (242) 3596.49 0.14 4003.11 3591.59 3564.12 3252.84 1.76 2.46 23.09 41.40 3772.44 Food & Drug Retailer 12.08 Financials 5.41 Industrial Eng -6.23 Associated British Foods PLC 3159 8.00 Mondi PLC 1529 -14.00
FTSE SmallCap (294) 4699.53 0.04 5230.87 4697.75 4656.45 4410.00 2.65 1.78 21.29 74.99 6367.44 Financial Services 11.33 Electronic & Elec Eq 4.92 Utilities -7.24
FTSE SmallCap ex Inv Co (157) 4243.90 0.12 4723.72 4238.82 4192.85 3943.12 2.50 2.68 14.94 68.66 6043.67 FX: EFFECTIVE INDICES Technology 11.32 Industrials 4.65 Aerospace & Defense -8.76
Astrazeneca PLC 4319.5 128.50 Morrison (Wm) Supermarkets PLC 181.10 0.60
Aviva PLC 518.50 1.00 National Grid PLC 842.70 3.50
FTSE All-Share (644) 3635.28 0.47 4046.29 3618.45 3580.04 3585.62 3.40 1.63 18.05 74.42 5720.51 Real Est Invest & Tr 11.09 Equity Invest Instr 4.26 Oil & Gas -10.22
Jul 29 Jul 28 Mnth Ago Jul 30 Jul 29 Mnth Ago Babcock International Group PLC 985.50 -53.50 Next PLC 7885 75.00
FTSE All-Share ex Inv Co (469) 3600.81 0.49 4007.93 3583.27 3544.31 3558.56 3.44 1.64 17.73 74.38 2931.34 Telecommunications 10.33 Tech Hardware & Eq 2.38 Oil & Gas Producers -10.64 Bae Systems PLC 473.10 3.50 Old Mutual PLC 212.80 1.50
FTSE All-Share ex Multinationals (580) 1248.18 -0.08 1151.47 1249.20 1238.35 1099.18 2.58 2.07 18.72 20.64 2104.20 Australia 92.60 92.56 96.30 Sweden 77.23 77.34 78.93 Consumer Services 9.98 Oil Equipment & Serv 1.83 Electricity -11.40 Barclays PLC 287.05 2.45 Pearson PLC 1193 -3.00
FTSE Fledgling (110) 7978.99 0.00 8881.11 7978.89 7984.71 6862.17 2.28 3.70 11.87 98.74 14233.83 Canada 91.15 90.54 94.81 Switzerland 162.48 162.04 165.98 FTSE 250 Index 8.79 FTSE All{HY-}Share Index 1.79 Automobiles & Parts -13.31 Barratt Developments PLC 625.50 3.00 Persimmon PLC 1986 12.00
FTSE Fledgling ex Inv Co (58) 10923.99 0.03 12159.07 10920.44 10920.71 8410.00 2.20 7.09 6.40 114.30 18932.56 Denmark 105.61 105.72 105.26 UK 93.92 93.51 93.46 General Retailers 8.43 Banks 1.47 Basic Materials -18.93 Bg Group PLC 1079.5 39.50 Prudential PLC 1520 18.50
FTSE All-Small (404) 3261.01 0.04 3629.70 3259.83 3232.83 3047.36 2.63 1.86 20.43 51.47 5673.62 Japan 123.26 123.48 122.29 USA 104.03 104.18 102.48 Support Services 8.23 Beverages 0.82 Mining -22.65 Bhp Billiton PLC 1170 2.00 Randgold Resources LD 3813 -
FTSE All-Small ex Inv Co Index (215) 3168.75 0.12 3527.02 3165.08 3132.27 2920.12 2.49 2.85 14.11 50.43 5717.45 New Zealand 113.30 113.20 114.42 Euro 85.63 85.84 85.63 Health Care Eq & Srv 0.73 Industrial Metals & -28.62 BP PLC 401.00 2.40 Reckitt Benckiser Group PLC 6104 11.00
FTSE AIM All-Share Index (828) 750.17 0.14 834.98 749.16 749.16 768.56 1.42 1.37 51.50 5.39 802.74 Norway 89.25 88.62 91.20
British American Tobacco PLC 3740 59.50 RELX PLC 1097 -4.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British Land Company PLC 829.50 -6.00 Rio Tinto PLC 2456.5 2.50
Oil & Gas (18) 7022.49 2.97 7816.46 6819.96 6722.39 9060.81 5.38 1.09 17.08 188.83 5724.48 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bt Group PLC 467.95 -5.55 Rolls-Royce Holdings PLC 749.50 19.00
Oil & Gas Producers (11) 6646.50 3.05 7397.96 6449.78 6360.53 8572.25 5.42 1.07 17.17 178.25 5600.04 Bunzl PLC 1820 16.00 Royal Bank Of Scotland Group PLC 342.40 -10.80
Oil Equipment Services & Distribution (7)18062.68 1.01 20104.86 17882.85 17422.47 23670.57 4.20 1.58 15.04 515.61 13070.90 FTSE GLOBAL EQUITY INDEX SERIES Burberry Group PLC 1564 4.00 Royal Dutch Shell PLC 1861 84.00
Basic Materials (31) 3921.57 -0.27 4364.95 3932.10 3875.40 5731.74 4.95 2.60 7.78 116.02 3759.86 Capita PLC 1279 8.00 Royal Dutch Shell PLC 1839 74.50
Chemicals (8) 11964.06 0.09 13316.73 11953.45 11797.03 10417.29 2.26 2.41 18.37 188.19 10240.46 Jul 30 No of US $ Day Mth YTD Total
YTD Gr Div Jul 30 No of US $ Day Mth YTD Total YTD Gr Div Carnival PLC 3376 -57.00 Royal Mail PLC 492.80 0.40
Forestry & Paper (1) 17971.15 -0.91 20002.99 18135.70 17806.60 12258.93 2.04 3.38 14.55 241.11 18544.30 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Centrica PLC 266.60 -8.60 Rsa Insurance Group PLC 517.00 -1.00
Industrial Metals & Mining (2) 1072.18 -1.77 1193.40 1091.48 1044.65 1226.31 1.04 -21.67 -4.45 5.46 930.58 FTSE Global All Cap 7613 480.44 0.8 0.3 3.82.2 651.20
2.4 Oil & Gas 165 359.46 1.6 1.6 -9.7 540.00 -8.0 3.9 Coca-Cola Hbc AG 1307 2.00 Sabmiller PLC 3390.5 7.50
Mining (20) 10809.71 -0.28 12031.87 10839.57 10685.18 17225.71 5.53 2.62 6.91 352.71 5406.18 FTSE Global All Cap 6977 493.32 0.8 0.1 3.31.9 656.59
2.3 Oil & Gas Producers 116 327.15 1.7 1.7 -9.7 499.77 -8.0 4.0 Compass Group PLC 1031 3.00 Sage Group PLC 515.00 0.50
FTSE Global Large Cap 1361 425.36 0.8 0.8 3.72.0 589.38
2.5 Oil Equipment & Services 40 375.27 1.5 1.5 -9.5 515.47 -7.8 3.6 Crh PLC 1879 -9.00 Sainsbury (J) PLC 260.80 -0.80
Industrials (117) 4515.87 0.23 5026.43 4505.41 4472.31 4307.51 2.44 1.30 31.43 69.38 4440.92
Construction & Materials (13) 5154.31 -0.51 5737.06 5180.94 5094.69 4081.21 2.50 -0.40 -100.19 79.41 5225.08 FTSE Global Mid Cap 1666 634.73 0.8 -0.6 4.02.8 822.84
1.9 Basic Materials 273 403.70 1.1 1.1 -7.3 585.27 -5.6 3.1 Diageo PLC 1811 -28.50 Schroders PLC 3110 18.00
Aerospace & Defense (9) 4590.98 1.46 5110.04 4524.90 4494.50 5050.50 2.44 1.13 36.14 69.13 4699.41 FTSE Global Small Cap 4586 671.27 0.9 -1.4 4.02.9 844.73
1.9 Chemicals 124 634.86 0.8 0.8 1.8 926.08 3.5 2.4 Direct Line Insurance Group PLC 364.60 -3.10 Severn Trent PLC 2196 -2.00
General Industrials (6) 3612.31 -0.02 4020.72 3613.19 3606.74 3304.10 3.13 1.79 17.85 48.72 3856.46 FTSE All-World 3027 280.79 0.8 0.5 3.72.2 401.44
2.4 Forestry & Paper 17 217.86 -0.6 -0.6 4.6 345.83 6.6 2.7 Dixons Carphone PLC 448.90 -6.60 Shire PLC 5590 -110.00
Electronic & Electrical Equipment (11) 5541.87 3.91 6168.44 5333.40 5277.30 4837.70 2.09 2.01 23.78 74.00 4862.32 FTSE World 2532 497.05 0.8 0.9 3.82.3 953.96
2.4 Industrial Metals & Mining 71 323.62 1.6 1.6 -21.5 471.10 -20.1 3.0 Easyjet PLC 1644 -39.00 Sky PLC 1119 -13.00
Industrial Engineering (14) 8808.23 0.71 9804.10 8746.26 8714.65 10541.27 2.75 1.77 20.54 160.88 10210.82 FTSE Global All Cap ex UNITED KINGDOM In 7283 491.97 0.7 0.4 3.72.2 657.88
2.3 Mining 61 447.23 1.8 1.8 -21.5 641.73 -19.7 5.2 Experian PLC 1176 -4.00 Smith & Nephew PLC 1167 32.00
Industrial Transportation (8) 4351.21 -0.24 4843.16 4361.74 4333.17 4075.22 3.75 1.20 22.19 116.47 3614.19 FTSE Global All Cap ex USA 5641 455.37 0.9 -1.5 3.81.8 654.60
2.8 Industrials 533 312.69 0.8 0.8 -0.6 430.74 0.7 2.1 Fresnillo PLC 645.00 -1.00 Smiths Group PLC 1135 12.00
Support Services (56) 6820.31 -0.41 7591.42 6848.68 6802.27 6180.43 2.23 1.53 29.27 100.20 6778.65 FTSE Global All Cap ex JAPAN 6358 490.68 0.9 0.4 3.01.4 670.90
2.4 Construction & Materials 110 446.56 0.9 0.9 3.5 645.98 5.2 2.1 G4S PLC 273.00 0.90 Sports Direct International PLC 779.50 -2.50
FTSE Developed 2091 451.22 0.8 1.2 4.52.9 616.00
2.4 Aerospace & Defense 29 506.14 1.8 1.8 1.8 691.12 3.0 2.1 Gkn PLC 315.90 -5.70 Sse PLC 1510 4.00
Consumer Goods (40) 17576.97 0.26 19564.24 17531.49 17264.94 15486.20 2.96 1.85 18.30 283.90 12213.79
FTSE Developed All Cap 5661 473.71 0.8 1.0 4.53.0 639.89
2.3 General Industrials 57 215.27 0.7 0.7 -1.0 317.91 0.5 2.6 Glaxosmithkline PLC 1389 14.50 St. James's Place PLC 971.50 -1.50
Automobiles & Parts (1) 7423.80 -1.77 8263.14 7557.75 7440.25 8046.56 2.66 1.61 23.35 131.60 6761.79
FTSE Developed Large Cap 885 418.20 0.8 1.5 4.42.8 578.40
2.5 Electronic & Electrical Equipment 69 329.50 -0.1 -0.1 1.3 418.62 2.3 1.7 Glencore PLC 211.00 -2.00 Standard Chartered PLC 983.10 0.90
Beverages (6) 14098.09 -0.80 15692.03 14211.12 14049.92 13827.21 2.49 1.89 21.27 105.50 9415.20
FTSE Developed Europe Large Cap 204 366.47 1.0 1.0 6.33.6 572.66
3.3 Industrial Engineering 103 592.13 -0.4 -0.4 -4.2 802.51 -2.8 2.2 Hammerson PLC 655.00 -5.50 Standard Life PLC 451.90 5.90
Food Producers (10) 8282.51 -0.03 9218.94 8284.82 8194.99 7538.99 1.95 1.57 32.58 91.21 6875.54
FTSE Developed Europe Mid Cap 310 538.27 0.7 0.3 9.77.6 767.13
2.4 Industrial Transportation 94 552.96 1.3 1.3 -7.4 759.39 -6.3 2.2 Hargreaves Lansdown PLC 1182 8.00 Taylor Wimpey PLC 190.40 5.00
Household Goods & Home Construction (13)13264.09 0.53 14763.75 13194.53 13133.38 9811.17 2.15 2.46 18.94 132.98 8918.25
FTSE Dev Europe Small Cap 723 758.05 1.0 1.7 12.010.1 1051.58
2.2 Support Services 71 284.30 1.4 1.4 4.3 376.83 5.5 1.8 Hikma Pharmaceuticals PLC 2405 -2.00 Tesco PLC 214.65 1.65
Leisure Goods (2) 5352.21 -0.90 5957.34 5400.95 5231.90 5445.79 3.95 1.35 18.74 109.73 4428.14
FTSE North America Large Cap 318 454.05 0.8 2.5 3.32.1 591.78
2.2 Consumer Goods 406 423.32 0.8 0.8 4.5 596.24 6.1 2.3 HSBC Holdings PLC 577.10 0.60 Travis Perkins PLC 2194 -1.00
Personal Goods (6) 23217.54 0.63 25842.54 23072.16 22984.12 19613.47 2.84 2.97 11.86 342.75 14780.18
FTSE North America Mid Cap 400 678.86 1.0 -0.3 0.90.1 831.44
1.6 Automobiles & Parts 98 390.06 0.4 0.4 0.1 528.10 1.6 2.3 Imperial Tobacco Group PLC 3349 -16.00 Tui AG 1071 -
Tobacco (2) 44781.79 0.95 49844.86 44362.44 42972.31 39390.35 4.12 1.31 18.53 1291.78 26856.95
FTSE North America Small Cap 1487 699.63 1.0 -1.3 2.41.6 833.87
1.6 Beverages 48 556.49 0.8 0.8 3.4 792.31 4.8 2.5 Inmarsat PLC 885.00 -15.00 Unilever PLC 2889 20.00
Health Care (20) 9569.21 1.03 10651.12 9471.70 9295.24 9235.00 3.58 0.65 42.66 203.85 6870.01
FTSE North America 718 304.07 0.8 2.0 2.91.7 406.28
2.1 Food Producers 102 571.96 0.9 0.9 3.6 832.69 5.4 2.2 Intercontinental Hotels Group PLC 2743 120.00 United Utilities Group PLC 883.00 -0.50
Health Care Equipment & Services (8) 6954.08 1.81 7740.31 6830.15 6765.65 5834.62 1.46 2.19 31.27 60.90 5859.03
FTSE Developed ex North America 1373 244.49 0.7 0.1 6.84.8 377.02
2.8 Household Goods & Home Construction 44 407.16 0.7 0.7 2.8 571.15 4.4 2.3 International Consolidated Airlines Group S.A. 542.00 -9.00 Vodafone Group PLC 241.05 0.10
Pharmaceuticals & Biotechnology (12)12997.24 0.96 14466.73 12874.18 12623.24 12698.03 3.78 0.60 44.18 292.29 8281.71
FTSE Japan Large Cap 174 340.12 0.0 -0.7 12.611.5 421.34
1.7 Leisure Goods 26 136.05 1.4 1.4 8.0 173.33 8.6 1.2 Intertek Group PLC 2438 19.00 Weir Group PLC 1555 24.00
Consumer Services (98) 4999.80 -0.11 5565.08 5005.12 4974.96 4273.33 2.17 1.94 23.74 72.84 4473.63 FTSE Japan Mid Cap 305 491.95 0.3 0.4 16.715.7 589.97
1.4 Personal Goods 76 636.64 1.0 1.0 9.2 855.78 10.4 1.9
Food & Drug Retailers (7) 3279.68 0.52 3650.48 3262.63 3236.59 3494.91 2.15 0.50 93.70 41.87 3735.43 Intu Properties PLC 326.50 -6.20 Whitbread PLC 5145 -
FTSE Global wi JAPAN Small Cap 776 516.25 0.0 -0.5 11.210.1 638.73
1.6 Tobacco 12 1191.22 0.8 0.8 11.0 2284.00 13.6 3.9 Itv PLC 271.60 -4.60 Wolseley PLC 4210 -8.00
General Retailers (33) 3151.63 0.32 3507.95 3141.51 3113.34 2593.53 2.04 2.35 20.87 42.55 3418.93
FTSE Japan 479 140.45 0.1 -0.5 13.4 1.7 Health Care
12.3 195.59 159 490.63 0.6 0.6 12.9 678.95 14.3 1.7 Johnson Matthey PLC 2891 -6.00 Wpp PLC 1461 -5.00
Media (23) 7479.34 -0.52 8324.96 7518.56 7382.15 6205.85 2.60 1.71 22.49 129.46 4368.03
FTSE Asia Pacific Large Cap ex Japan 491 590.36 0.6 -4.4 -4.1 871.54
-2.3 3.1 Health Care Equipment & Services 58 666.18 0.4 0.4 12.8 760.57 13.4 1.1 Kingfisher PLC 359.30 -3.20
Travel & Leisure (35) 8346.91 -0.23 9290.62 8366.23 8426.23 6863.87 1.88 2.50 21.30 112.01 7550.63
FTSE Asia Pacific Mid Cap ex Japan 441 787.26 0.4 -5.1 -2.3 1121.13
-0.9 2.7 Pharmaceuticals & Biotechnology 101 377.41 0.6 0.6 13.0 542.29 14.6 1.9
Telecommunications (8) 4147.52 -0.54 4616.45 4170.17 4091.20 3440.66 3.80 1.93 13.65 82.62 4260.27 FTSE Asia Pacific Small Cap ex Japan 1374 527.31 0.3 -6.5 -1.3 741.30
0.1 2.7 Consumer Services 386 407.54 0.9 0.9 8.9 525.95 10.0 1.6
Fixed Line Telecommunications (6) 5382.71 -1.28 5991.28 5452.24 5371.82 4527.08 2.59 1.97 19.54 15.48 4548.69
Mobile Telecommunications (2) 5435.55 -0.06 6050.10 5438.80 5320.75 4468.93 4.59 1.91 11.41 168.70 5001.50
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
932
1952
466.55
650.78
0.6
1.0
-4.5
-6.5
-3.9 732.09
-2.2 3.0 Food & Drug Retailers
-5.6 919.75
-3.7 3.1 General Retailers
54 328.79
120 533.11
0.8
1.0
0.8
1.0
9.3 441.54
11.5 671.37
10.5
12.5
1.7
1.5
UK STOCK MARKET TRADING DATA
Utilities (8) 8212.93 -0.32 9141.49 8238.96 8179.37 8571.26 5.03 1.35 14.72 295.54 8630.87 FTSE Emerging Large Cap 476 620.33 1.1 -6.4 -5.1 882.34
-3.2 3.1 Media 91 322.19 1.0 1.0 7.1 416.76 8.3 1.7 Jul 30 Jul 29 Jul 28 Jul 27 Jul 24 Yr Ago
Electricity (3) 8762.87 0.33 9753.60 8734.22 8724.01 9427.45 5.79 1.43 12.09 493.70 11641.50 FTSE Emerging Mid Cap 460 796.96 0.8 -6.1 -7.5 1120.64
-5.8 2.8 Travel & Leisure 121 384.79 0.7 0.7 6.9 501.26 8.0 1.6 SEAQ Bargains 4078.00 4765.00 5194.00 5374.00 5374.00 5374.00
Gas Water & Multiutilities (5) 7632.81 -0.49 8495.79 7670.38 7602.35 7898.67 4.82 1.33 15.65 232.42 8028.41 FTSE Emerging Small Cap 1016 660.14 0.9 -7.3 -6.7 897.62
-5.1 2.9 Telecommunication 93 171.88 1.3 1.3 2.9 298.08 5.6 3.9 Order Book Turnover (m) 38.34 42.33 36.84 - - -
Financials (283) 4913.55 0.12 5469.08 4907.84 4879.36 4549.32 3.19 1.90 16.51 104.17 4236.71 FTSE Emerging Europe 98 311.88 2.0 -5.7 3.40.1 454.15
4.5 Fixed Line Telecommuniations 43 140.65 1.2 1.2 2.7 266.41 5.8 4.4 Order Book Bargains 861907.00 843317.00 778484.00 - - -
Banks (9) 4434.77 0.23 4936.17 4424.54 4388.06 4438.58 3.70 1.29 20.88 107.97 3010.22 FTSE Latin America All Cap 243 752.64 2.1 -8.0 -16.5 1098.44
-15.1 3.5 Mobile Telecommunications 50 186.77 1.4 1.4 3.2 294.27 5.4 3.3 Order Book Shares Traded (m) 1356.00 1287.00 1199.00 - - -
Nonlife Insurance (10) 2656.33 -0.64 2956.65 2673.44 2672.81 2160.34 2.58 1.48 26.20 46.33 4415.80 FTSE Middle East and Africa All Cap 214 774.90 1.8 0.9 2.3 2.7 Utilities
0.7 1141.35 163 249.23 0.4 0.4 -6.7 450.10 -4.6 3.9 Total Equity Turnover (£m) 2098.24 0.09 0.05 0.23 0.23 0.23
Life Insurance/Assurance (11) 8096.08 0.76 9011.43 8034.93 8030.70 7259.07 3.32 1.75 17.18 200.42 7344.27 FTSE Global wi UNITED KINGDOM All Cap In 330 368.28 1.6 -0.5 4.6 3.5 Electricity
2.5 573.09 113 268.63 0.3 0.3 -5.3 480.38 -3.2 3.7 Total Mkt Bargains 965023.00 3.00 6.00 3.00 3.00 3.00
Index- Real Estate Investment & Services (24) 3242.32 -0.25 3608.90 3250.29 3190.15 2596.00 1.73 5.89 9.80 34.10 8262.60 FTSE Global wi USA All Cap 1972 522.48 0.8 2.0 3.8 1.9 Gas Water & Multiutilities
2.7 663.46 50 270.41 0.5 0.5 -9.1 500.03 -6.9 4.2 Total Shares Traded (m) 3395.00 0.00 0.00 0.00 0.00 0.00
Real Estate Investment Trusts (23) 3047.15 -0.64 3391.67 3066.64 3051.89 2524.85 2.68 6.75 5.53 55.07 3562.29 FTSE Europe All Cap 1390 417.18 1.0 0.7 7.2 3.1 Financials
4.7 632.68 667 219.92 0.8 0.8 1.9 338.19 3.8 2.7 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (31) 8062.14 -0.08 8973.65 8068.84 8011.54 6607.93 2.80 2.16 16.57 135.72 8658.98 FTSE Eurobloc All Cap 636 388.67 0.4 1.7 8.0 2.9 Banks
5.5 597.84 241 203.75 0.9 0.9 1.3 333.55 3.5 3.1 (c) Market closed.
Equity Investment Instruments (175) 7755.34 -0.17 8632.17 7768.53 7738.36 7249.63 2.52 1.15 34.56 120.30 4034.89 FTSE RAFI All World 3000 3022 5904.37 0.9 -0.9 2.1 3.0 Nonlife Insurance
0.2 7355.71 69 220.61 0.5 0.5 3.0 305.47 4.8 2.2
Non Financials (361) 4177.13 0.59 4649.40 4152.56 4101.24 4210.46 3.48 1.54 18.68 84.43 5757.33 FTSE RAFI US 1000 1007 9271.23 0.9 0.9 -0.2 11589.32
1.1 2.4 Life Insurance 49 219.74 1.1 1.1 4.1 330.13 5.9 2.5
Technology (21) 1372.22 1.46 1527.36 1352.43 1350.43 1084.31 1.31 2.22 34.31 13.08 1707.34 FTSE EDHEC-Risk Efficient All-World 3027 330.74 0.8 0.6 4.8 2.2 Financial Services
3.5 440.77 137 239.22 0.9 0.9 3.3 316.02 4.4 1.8 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1677.27 0.35 1866.90 1671.36 1674.49 1251.57 1.88 1.75 30.24 24.46 2185.11 FTSE EDHEC-Risk Efficient Developed Europe 514 294.21 0.9 0.9 7.7 2.6 Technology
5.6 426.97 182 174.33 0.4 0.4 1.3 206.48 2.3 1.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (8) 1575.10 2.35 1753.18 1539.00 1532.64 1298.21 0.87 3.00 38.34 8.51 1800.95 Software & Computer Services 79 293.68 0.8 0.8 8.2 335.46 8.9 1.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment 103 133.75 0.0 0.0 -4.5 162.54 -3.2 2.3 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 6673.31 6635.22 6650.36 6671.46 6685.16 6678.67 6689.34 6653.33 6659.06 6697.20 6633.73 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
FTSE 250 17573.06 17547.74 17558.66 17557.50 17530.15 17510.35 17533.17 17468.13 17500.06 17636.85 17438.04 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 4703.19 4701.01 4701.92 4703.45 4701.66 4701.20 4700.56 4698.11 4700.17 4704.57 4697.36
FTSE All-Share 3639.09 3621.57 3628.57 3637.76 3642.75 3639.23 3644.64 3626.65 3630.31 3648.15 3620.26 www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:12:53:15 Day's Low08:00:15 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 6366.51(06/01/2015) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:12:53:00 Day's Low13:50:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3434.73(06/01/2015)
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing BAE Systems Int 8001 7122 508 541 12.3 13.5 8.4 8.2 Nov 30 20.7 20.3 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Barclays Int 13163 12538 3114 2501 9.9 7 1 1 Sep 14 4.5 4.5 07/10 139.00 KNOS Kainos Group PLC 187.00 0.00 198.68 165.00 22057.7
There are currently no rights offers by any companies listed on the LSE. BT Group 1st 4360 4354 632 546 6.1 5.6 - - - - - 07/03 10.00 AIM KCR K&C REIT PLC 10.13 0.00 10.50 9.50 443.3
Centrica Int 15451 15748 1208 890 21.1 10.5 3.57 5.1 Nov 26 11.97 17.18
Diageo Pre 10813 10258 2933 2711 95 89.7 34.9 32 Oct 8 56.4 51.7
InterContinental Hotels Group Int 915 908 458 377 1.562 0.93 27.833 25.207 Oct 2 80.4 75.4
Intu Properties Int 281.9 261.5 265.6 602 20.4 51.8 4.6 4.6 Nov 24 13.7 14.6
Merlin Entertainments Int 544 513 36 40 2.5 2.8 2.1 2 Sep 24 6.3 2
Rolls-Royce Holdings Int 6370 6249 310 713 19.51 29.06 - 9 - - 22.4
Royal Bank of Scotland Group (The) Int 7577 8384 293 2226 1.3L 12.6 - - - - -
Royal Dutch Shell Int 138108 220880 11411 17668 1.34 1.56 47 49.545 Sep 21 96.545 185
Schroders Int 1022.4 954.4 290.3 233.9 84 69 29 24 Sep 24 83 66
Sky Pre 9989 7450 1516 1025 115.8 55.4 20.5 20 Nov 20 32.8 32
Weir Group Int 999.7 1143.7 38.7 157.7 17.5 53.8 15 15 Nov 6 44 48.2

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.
Friday 31 July 2015 ★★★ FINANCIAL TIMES 23

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) AXA 24.15 0.16 24.88 16.43 3.72 10.54 64479.73 Denso 5988 127.00 6548 4466.5 2.00 16.95 42576.93 SEB 103.60 -0.60 111.50 82.30 4.74 11.17 26295.47 Biogen 317.00 3.66 480.18 290.85 - 21.61 74548.64 Lyondell 94.15 0.39 115.40 70.06 3.04 10.85 43862.1
ANZ 32.47 0.22 37.25 30.47 8.65 11.25 66015.37 BNP Parib 57.66 1.43 59.69 43.14 2.69 427.51 78498.42 EastJpRwy 12100 260.00 12280 7623 1.08 24.18 38294.53 SvnskaHn 131.20 0.10 426.00 117.10 3.28 16.37 28967.11 BkNYMeln♦ 43.93 0.32 44.99 35.06 1.63 18.51 49268.01 Marathon Ptl 53.94 -1.87 60.38 37.32 1.87 9.00 14652.11
BHPBilltn 26.50 0.61 39.74 24.90 8.90 10.66 61917.42 ChristianDior 185.35 0.20 192.80 126.10 1.85 12.85 36797.26 Fanuc 20745 45.00 28575 17130 3.35 17.93 34360.97 Swedbank 200.00 -0.60 223.90 166.20 5.86 13.19 25595.59 BlackRock 338.75 -1.09 382.84 293.39 2.47 16.35 55763.76 Marsh&M♦ 58.14 0.19 59.99 48.66 1.97 20.55 31303.04
CmwBkAu 87.08 0.48 96.69 73.57 7.41 14.31 103109.17 Cred Agr 14.24 0.05 14.49 9.80 2.54 14.80 41035.34 FastRetail 61930 1700 61970 32030 0.54 51.50 52834.21 TeliaSonera 52.45 0.30 55.85 45.36 5.91 15.72 26293.96 Boeing 143.01 -1.13 158.83 116.32 2.28 19.57 97174.6 MasterCard♦ 98.41 1.68 98.82 69.64 0.60 30.41 109836.72
CSL 96.35 -1.35 98.64 63.77 1.45 27.20 32582.31 Danone 61.57 0.21 67.74 49.84 2.61 29.92 44053.6 Fuji Hvy Ind 4536 87.50 4827.5 2811 1.63 12.40 28560.58 Volvo 101.90 1.00 120.50 71.00 3.04 25.23 23941.04 BrisMySq♦ 64.46 -0.43 70.54 47.55 2.26 60.75 107487.23 McDonald's 99.17 0.96 101.09 87.62 3.52 21.15 95055.92
NatAusBk 34.56 0.39 39.71 31.33 8.91 13.19 66014.78 EDF 21.85 0.71 26.12 19.52 6.35 9.89 44388.49 Hitachi 784.60 48.00 939.90 731.20 1.42 13.48 30500.94 Switzerland (SFr) Broadcom 51.35 -0.46 57.70 34.50 1.02 42.57 28228.02 McGraw Hill 102.84 1.36 109.13 73.96 1.22-170.97 28023.9
Telstra 6.45 0.04 6.74 5.23 7.36 15.39 57367.42 Essilor Intl 117.90 -1.85 121.10 71.16 0.88 24.58 27837.99 HondaMtr 3919.5 73.00 4400 3239 2.45 12.72 57102.94 ABB 19.50 0.27 22.31 16.75 - 18.08 46550.3 CapOne 81.50 1.88 92.10 72.77 1.55 10.14 44533.59 McKesson 217.36 -9.49 243.61 178.28 0.44 26.39 50497.62
Wesfarmers 42.34 0.65 46.95 38.45 7.73 27.41 34614.23 GDF Suez 17.56 0.67 20.57 16.08 7.39 15.89 46717.29 JapanTob 4765.5 107.50 4798 3101 2.29 19.36 76655.8 CredSuisse 28.54 0.47 28.94 18.57 2.53 12.19 48223.38 CardinalHlth 83.34 -1.01 91.91 68.54 1.73 23.18 27571.67 Medtronic 78.28 0.40 79.50 59.83 1.58 31.95 110702.69
Westpc 34.74 0.34 40.07 31.00 8.27 13.49 80468.05 Hermes Intl 349.10 0.45 365.55 229.00 0.86 38.42 40261.62 Kao 6395 -100.00 6623 3956 1.19 44.68 25922.55 Nestle 72.90 - 77.00 64.15 2.88 16.50 239709.56 Carnival 51.88 -0.22 52.47 33.11 1.97 27.64 30748.66 Merck 58.52 -0.02 63.62 52.49 3.20 14.46 165331.98
Woolworths 28.63 0.81 37.32 26.25 7.70 13.25 26381.48 LOreal 170.35 0.45 181.30 117.05 1.63 32.48 104162.72 KDDI 3171.5 -25.00 3209 1899.67 1.95 51.08 68638.44 Novartis 100.00 -0.20 103.20 78.60 2.63 25.86 276078.29 Caterpillar♦ 78.35 1.02 109.73 74.77 3.62 11.94 47433 Metlife 56.83 -0.39 58.23 46.10 2.59 8.79 63411.98
Belgium (€) LVMH 168.60 -0.40 175.40 121.40 2.07 13.56 93555.87 Keyence 61490 -280.00 70100 42660 0.35 28.25 30069.65 Richemont 82.35 0.35 92.25 68.80 1.54 31.87 44332.18 CBS 53.20 0.59 63.95 48.83 1.13 21.14 24169.61 MicronTech 19.90 0.03 36.59 17.14 - 6.47 21560.37
AnBshInBv 109.15 -4.30 119.65 78.75 2.87 23.92 191769.05 Nmrcble-SFR 49.35 -1.46 60.01 26.38 - -57.63 23626.96 MitsbCp 2666.5 46.50 2837 1942.5 2.45 9.95 34829.24 Roche 278.70 -0.90 295.80 238.80 2.96 26.07 201932.89 Celgene 131.88 -0.26 140.72 83.16 - 50.29 104256.44 Microsoft 46.88 0.59 50.05 40.12 2.65 18.52 379239.29
KBC Grp 62.18 0.04 65.43 36.53 - 11.81 28379.35 Orange 15.00 -0.40 16.45 10.20 4.05 38.99 43406.81 MitsubEst 2691 31.50 2975 2151.5 0.57 46.70 30092.56 Swiss Re 87.25 -1.25 96.95 69.25 5.09 35.05 33356.55 Cernr Crp 71.96 -1.44 75.72 53.65 - 46.37 24759.88 MondelezInt 45.27 2.17 45.31 31.83 1.37 31.11 73637.21
PernodRic 108.80 0.80 117.75 82.23 1.67 26.73 31547.76 MitsubishiEle 1374 -82.50 1718 1222.5 0.97 22.95 23728.27 Swisscom 560.50 2.50 587.50 500.00 4.12 16.50 29943.78 CharlesSch 35.19 0.37 35.53 23.35 0.72 35.74 46222.74 Monsanto 103.02 1.02 126.00 99.98 1.89 18.75 48196.32
Brazil (R$)
Renault 83.13 -7.22 100.25 49.50 2.29 10.87 26856.24 MitsuiFud 3513 68.00 3809.5 2854.5 0.78 31.02 28012.02 Syngent 396.90 3.00 435.20 273.20 2.77 23.23 38044.79 ChevrnTx 93.03 -0.22 133.69 88.74 4.84 9.67 174940.84 MorganStly♦ 39.30 0.01 41.04 31.12 1.07 18.23 77422.05
Ambev 18.91 0.16 20.29 14.99 9.16 21.87 88106.98
Safran 67.51 6.16 70.72 43.24 1.97-201.18 30756.6 MitUFJFin 893.20 14.40 936.80 546.20 2.20 7.61 101786.5 UBS 22.22 0.22 22.22 13.58 3.48 17.00 86146.64 Cigna 143.90 -1.51 170.68 85.75 0.03 17.23 37035.12 MylanNV 56.35 -0.89 76.69 44.80 - 25.23 27613.38
Bradesco 27.23 -0.36 34.42 25.53 3.90 7.40 20376.59
Sanofi 97.77 -0.23 99.83 69.58 2.96 29.01 140029.5 Mizuho Fin 268.00 5.60 280.40 178.10 3.05 7.82 53111.98 Zurich Fin 294.40 1.20 334.60 262.00 - 11.27 45662.76 Cisco 28.30 -0.10 30.31 22.49 2.80 16.15 143930.65 Netflix 111.56 4.48 117.88 45.08 - 253.00 47525.1
Cielo 43.60 -1.43 46.27 30.18 2.48 13.96 24384.64
Schneider 62.56 -0.18 75.29 52.59 3.11 21.37 39961.83 Murata Mfg 17970 -675.00 22220 9568 0.81 33.07 32557.1 Citigroup♦ 58.88 0.01 60.95 46.60 0.07 20.78 178650.14 News Corp A 34.04 0.03 39.27 31.01 0.85 7.62 42854.3
ItauHldFin 27.77 -0.59 35.22 25.87 1.83 6.67 25083.39 Taiwan (NT$)
SocGen 44.58 0.46 46.95 31.85 2.32 11.79 39258.38 NipponTT 4847 37.50 4946 3001.5 2.02 9.38 88624.62 CME Grp 97.01 - 100.87 72.25 2.07 26.07 32746.19 NextEraE 104.89 0.30 112.64 90.33 2.95 16.45 47421.15
Petrobras 11.52 -0.28 23.50 7.88 - -5.44 25415.61 HonHaiPrc 90.90 -0.60 112.00 83.00 1.87 9.08 43748.75
Total 44.96 0.65 52.09 38.25 5.78 33.27 118585.34 Nissan Mt 1186.5 3.00 1350 917.40 3.03 9.97 43140.14 Coca-Cola 40.56 -0.03 44.87 39.06 3.11 23.97 176788.91 Nike 115.01 0.09 115.40 75.90 0.96 30.38 77968.29
Vale 17.45 -0.90 32.95 16.41 16.51 -5.09 16641.94 TaiwanSem 138.50 3.00 155.00 118.00 2.29 11.89 114101.97
UnibailR 244.55 1.10 262.00 180.70 4.04 13.71 26315.65 NTTDCMo 2652.5 119.00 2682.5 1612.5 2.47 23.60 87163.78 Cognizant 63.12 0.86 65.96 41.51 - 24.96 38535.87 NorfolkS 85.80 -0.17 117.64 82.31 2.68 14.84 25858.99
Canada (C$) Vinci 56.08 -0.13 57.66 39.65 3.50 11.42 36640.74 Orintllnd 8252 -11.00 9890 4707.5 0.46 35.08 24137.78 Thailand (THB) ColgtPlm♦ 68.02 -0.91 71.56 62.53 2.23 25.53 61528.85 Northrop 175.41 1.97 176.50 118.24 1.64 17.88 33991.77
BCE 53.44 0.35 60.20 46.43 5.07 17.57 34781.13 Vivendi 23.69 -0.06 24.83 17.32 4.37 -88.56 35388.29 Panasonic 1447.5 -89.00 1853.5 1130 1.01 59.08 28558.3 PTT Explor 317.00 3.00 398.00 294.00 3.13 16.23 25906.92 Comcast 62.36 -0.12 64.99 49.33 1.51 18.56 132897.76 NXP 97.87 6.07 114.00 53.81 - 70.26 24638.92
BkMontrl♦ 73.01 0.20 85.71 71.27 4.73 10.49 36096.87 Seven & I 5659 -83.00 5757 3794.5 1.32 27.78 40345.64 United Arab Emirates (Dhs) ConocPhil♦ 52.07 -0.83 85.89 50.54 5.82 15.80 64199.53 Occid Pet 71.40 0.54 100.26 67.30 4.24 -35.25 54843.72
Germany (€)
BkNvaS 63.84 0.48 74.93 60.52 4.52 10.28 59278.3 ShnEtsuCh 7370 63.00 8529 6155 1.48 22.38 25613.27 Emirtestele 14.00 -0.80 15.85 9.41 5.02 12.89 33147.95 Corning 18.63 0.09 25.16 17.03 2.37 9.85 23446.85 Oracle 39.65 -0.14 46.71 35.82 1.32 17.56 171925.45
Allianz 150.40 0.40 170.15 115.05 3.64 10.31 75087.45
Brookfield 45.08 -0.24 48.64 31.95 1.32 9.50 33923.94 Softbank 6895 75.00 8760 6600 0.63 11.26 66582.64 Costco 145.30 -0.08 156.85 117.11 1.03 27.24 63857.56 Pepsico 96.63 0.10 100.76 87.46 2.74 22.51 141948.81
BASF 77.60 0.29 97.22 64.27 3.60 14.17 77863.54 United Kingdom (p)
CanadPcR 210.15 0.89 247.56 189.79 0.69 21.96 26463.12 Sony 3585 -75.00 3970 1731 0.76 -29.09 36253.79 CrownCstl 81.47 -0.65 89.44 72.53 3.02 70.22 27191.52 Pfizer 35.73 -0.03 36.13 27.51 3.12 23.55 220013.55
Bayer 133.75 -1.25 146.45 94.22 1.70 31.21 120830.12 AscBrFd 3159 8.00 3293 2407 1.08 44.27 39042.99
CanImp 92.55 0.63 107.37 88.04 4.83 9.65 28216.18 SumitomoF 5482 102.00 5747 3823 2.78 11.20 62346.5 CSX 31.46 -0.03 37.99 29.07 2.08 15.80 31081.9 PG&E 52.18 -0.16 60.21 42.92 3.46 18.31 25045.02
BMW 89.86 0.38 123.75 74.74 2.99 10.61 59096.63 AstraZen 4319.5 128.50 4931.68 4019 4.38 63.41 85212.71
CanNatRs 31.67 0.92 49.06 29.95 3.09 10.51 26596.12 Takeda Ph 6102 20.00 6657 4337.5 3.22 -30.19 38770.16 Cummins 129.80 -0.47 151.25 123.14 2.39 13.74 23534.27 Phillips66 79.12 -0.91 87.98 57.33 2.66 10.13 42853.93
Continental 203.50 -1.30 234.25 136.85 1.27 16.11 44464.22 Barclays 287.05 2.45 288.85 204.05 2.26 141.61 75166.77
CanNatRy 81.64 0.56 88.89 68.81 1.43 19.53 50081.11 TokioMarine 5118 36.00 5353 3002 2.02 14.49 31181.97 CVS♦ 112.94 -0.51 113.65 74.69 1.09 26.20 127433.68 PhilMorris 85.39 -0.06 90.25 75.27 4.85 17.13 132281.5
Daimler 80.67 -0.41 96.07 55.10 3.07 10.57 94282.96 BG 1079.5 39.50 1420 780.55 1.88 -28.46 57555.16
Enbridge 56.29 0.81 66.14 47.43 2.91 115.51 37007.42 Toyota 8163 51.00 8783 5710 2.67 10.89 224402.75 Danaher♦ 91.86 0.95 92.04 70.12 0.51 25.48 62785.21 PNCFin♦ 98.67 0.12 100.52 76.69 2.05 12.90 51103.2
Deut Bank 31.85 1.59 33.42 22.66 2.32 36.94 47991.35 BP 401.00 2.40 499.25 364.40 6.44 -18.21 114435.85
GtWesLif 36.94 0.05 37.70 29.30 3.66 12.83 28272.75 Deere♦ 93.51 -0.12 98.23 78.88 2.61 12.54 31220.32 PPG Inds 108.52 -0.05 118.95 85.78 1.25 26.99 29378.68
Deut Tlkm 16.43 -0.26 17.63 10.07 3.15 37.73 82684.93 Mexico (Mex$) BrAmTob 3740 59.50 3894 3303 3.96 17.36 108844.73
ImpOil 48.53 1.87 57.96 44.08 1.16 11.70 31566.25 Delta 44.03 -0.15 51.06 30.12 0.81 19.59 35021.39 Praxair 114.27 -1.66 134.06 111.54 2.37 22.42 32945.21
DeutsPost 27.42 0.09 31.19 21.55 3.02 16.23 36281.03 AmerMvl 15.26 -0.10 17.64 14.86 1.79 - 62558.11 BSkyB 850.50 -12.00 954.00 782.50 3.76 9.03 23005.52
Manulife 23.11 0.13 24.20 18.91 2.79 12.37 34956.1 DevonEngy 50.61 -0.57 78.47 48.21 1.99 -8.43 20802.82 Prec Cast 195.88 -0.33 249.12 186.17 0.06 17.29 26978.49
E.ON 12.01 0.06 15.46 11.59 5.17 -8.38 26242.95 FEMSA UBD 147.74 1.33 149.93 116.20 0.78 28.04 32094.18 BT 467.95 -5.55 481.75 351.90 2.44 17.95 60909.92
Potash♦ 35.17 0.39 47.10 34.44 5.46 13.75 22525.95 DirectTV 93.55 1.36 95.51 82.04 - 15.56 47176.52 Priceline 1222.06 2.63 1329.9 990.69 - 25.35 63347.73
Fresenius Med 75.13 -3.12 82.32 49.78 1.34 22.58 25534.22 WalMrtMex 38.64 -0.05 40.00 28.26 1.43 29.52 41022.73 Compass 1031 3.00 1223.36 924.41 2.62 20.02 26556.97
RylBkC♦ 75.75 0.10 83.87 71.74 4.30 10.70 83889.71 DiscFinServ 56.28 0.88 66.75 54.02 1.76 11.72 24904.18 ProctGmbl♦ 77.39 -3.23 93.89 77.10 3.50 19.58 209958.73
Fresenius SE 62.05 -0.36 65.53 35.10 0.69 28.79 29571.57 Netherlands (€) Diageo 1811 -28.50 2055 1689.5 2.85 22.60 71107.11
Suncor En 36.81 2.19 45.91 30.89 3.15 56.82 40838.72 Disney 120.03 0.19 120.35 78.54 1.01 24.56 203662.25 Prudntl 89.67 0.11 94.30 74.51 2.60 17.41 40620.51
HenkelKgaA 90.61 0.61 99.44 66.70 - 23.08 25716.49 Altice 114.50 -4.80 143.20 40.21 - 400.58 31017.77 GlaxoSmh 1389 14.50 1645 1296.5 5.76 6.99 105525.18
ThmReut 53.08 2.34 53.18 39.45 3.24 16.85 31938.8 DominRes 71.05 0.40 80.89 64.71 3.62 27.00 41967.3 PublStor 203.02 0.09 206.92 162.34 2.90 35.33 35101.32
Linde 170.35 2.75 195.55 142.85 1.82 27.62 34564.87 ASML Hld 90.70 1.12 104.85 61.58 0.78 28.86 42937.01 Glencore 211.00 -2.00 376.50 202.75 5.20 18.75 43461.98
TntoDom♦ 52.67 0.03 58.20 49.67 3.98 11.79 74851.45 DowChem 47.42 -0.01 54.97 41.45 3.41 14.05 54669.61 Qualcomm 64.41 1.24 78.53 60.83 2.68 17.77 101201.13
MuenchRkv 168.30 -0.10 206.50 141.10 4.45 9.22 31797.24 Heineken 71.01 -0.64 76.14 50.85 1.39 24.33 44683.51 HSBC 577.10 0.60 674.57 544.30 5.94 12.10 176063.91
TrnCan♦ 50.37 1.11 63.86 48.46 4.21 19.25 27403.39 DukeEner 73.45 0.34 89.97 69.48 4.53 19.88 50793.42 Raytheon 109.84 0.64 113.36 89.17 2.30 15.93 33341.71
SAP 65.47 0.34 70.81 50.08 1.70 25.21 87866.3 ING 15.45 0.11 16.00 9.49 - 32.40 65307.76 ImpTob 3349 -16.00 3413 2474 3.83 16.77 50039.76
ValeantPh 330.86 1.07 341.02 116.01 - 105.99 86629.15 DuPont 55.59 0.13 76.61 52.79 3.39 16.72 50299.94 Regen Pharm 547.10 0.83 569.91 310.69 - 166.70 55424.31
Siemens 96.03 3.55 106.35 80.17 3.48 13.95 92424.3 Philips 25.32 0.32 28.00 20.69 - 100.99 26346.82 LlydsBkg 86.02 0.42 89.35 70.72 0.87 -2.24 95957.17
China (HK$) Volkswgn 185.55 -0.35 254.50 147.35 2.62 8.34 59816.16 Natl Grid♦ 842.70 3.50 965.00 815.70 5.01 15.79 49002.01 Eaton♦ 61.08 -0.17 73.82 57.11 3.38 13.31 28555.85 ReynoldsAm 85.35 0.81 85.61 55.22 3.30 28.95 45407.32
Unilever 40.98 0.47 42.75 28.75 2.86 23.89 76756.9
AgricBkCh 3.49 -0.02 4.55 3.38 6.74 4.75 13838.62 Prudential 1520 18.50 1761.5 1287 2.30 17.50 61010.35 eBay 28.37 -0.38 29.35 19.50 - 11.94 34561.13 Salesforce 73.36 -0.52 78.46 51.04 - -283.37 48124.16
Hong Kong (HK$) Norway (Kr)
Bk China 4.22 -0.04 5.68 3.42 6.11 5.53 45521.46 RBS 342.40 -10.80 414.00 326.10 - -31.55 34582.96 Ecolab 116.10 0.78 118.46 97.78 1.10 27.05 34570.01 Schlmbrg 83.52 -0.37 112.00 75.60 2.14 24.97 105690.3
AIA 50.10 -0.50 58.20 39.10 0.89 22.57 77858.83 DNB 133.80 -0.90 143.00 98.10 2.93 9.56 26680.87
BkofComm 6.81 -0.05 8.61 5.29 5.02 5.76 30756.87 ReckittB 6104 11.00 6167 4895 2.28 25.94 67869.71 EMC 26.78 0.10 30.92 24.74 1.81 20.17 52008.4 SempraEgy 100.86 0.27 116.30 96.13 2.79 17.82 24970.93
BOC Hold 31.00 -0.60 33.70 23.85 3.26 13.32 42279.39 Statoil 141.20 3.80 183.70 118.20 5.26 10.57 55121.06
Ch Evrbrght 4.26 -0.10 5.65 3.47 5.31 5.22 3774.51 RELX 1097 -4.00 1199 921.50 2.27 103.23 35571.39 Emerson 51.98 -0.23 66.23 50.10 3.64 13.04 34738.5 Shrwin-Will 277.92 -0.88 294.35 202.01 0.87 28.42 25905.1
Ch OSLnd&Inv 24.45 -0.25 34.05 19.80 2.01 7.21 31099.88 Telenor 179.20 -2.10 186.10 128.90 2.19 24.91 32940.29
Ch Yangtze RMB 14.35 - 15.22 6.68 2.06 17.19 22522.28 RioTinto 2456.5 2.50 3530.5 2373 5.33 10.91 53631.63 EOG Res♦ 78.54 0.80 115.44 72.87 0.78 19.62 43113.32 SimonProp 186.14 -0.33 206.31 162.43 2.99 38.26 57938.08
Citic Ltd 13.82 0.12 16.88 11.64 1.92 8.39 44395.9
ChCommsCons 9.96 -0.34 17.00 5.45 2.48 8.66 5688.45 Qatar (QR) RollsRoyce 749.50 19.00 1061 717.50 2.99-192.18 21513.69 EquityResTP 74.29 -0.16 82.53 60.44 2.91 36.79 27040.73 SouthCpr 27.40 -0.55 33.49 23.60 1.69 16.56 21865.91
Citic Secs♦ 20.95 -0.15 40.50 16.30 0.95 12.66 6157.14
ChConstBk 6.29 -0.06 7.98 5.34 6.27 5.20 195072.21 QatarNtBk 182.50 -2.50 237.00 177.80 4.07 11.75 35068.14 RylDShlA 1839 74.50 2475.5 1725.5 7.17 11.69 112485.04 Exelon 31.65 0.51 38.93 30.63 3.89 11.78 27258.36 SouthwestAir 36.31 0.79 47.17 27.42 0.70 16.57 24265.85
CK Hutchison 112.40 0.70 174.90 103.00 3.15 4.83 55962.26
China Vanke - - - - - - - Russia (RUB) SABMill 3390.5 7.50 3857 3105 2.09 24.73 85595.09 ExpScripts 90.25 -1.04 94.61 68.78 - 29.89 60984.72 Starbucks 58.06 0.55 59.31 35.39 1.04 32.96 86172.65
CNOOC 9.72 0.06 15.88 9.36 5.86 5.77 55981.21
ChinaCitic 5.56 -0.05 7.40 4.66 6.03 4.86 10673.78 Gzprm neft 139.80 1.10 166.94 113.73 5.12 20.33 55528.12 Shire 5590 -110.00 5755 3448.28 0.27 14.28 51653.28 ExxonMb 83.01 -0.13 104.15 78.97 3.50 11.84 347073.8 StateSt 77.15 0.73 81.26 64.21 1.64 15.71 31761.08
Hanergythn 3.91 -3.46 9.07 1.21 - 52.03 21056.26
ChinaCNR 15.86 0.78 21.95 4.99 - 25.51 4365.2 Lukoil 2441 10.10 3297.7 1911.5 2.77 8.17 34835.12 StandCh 983.10 0.90 1261.04 867.50 5.62 14.51 39086.01 Facebook 95.21 -1.78 99.24 70.32 - 88.13 214117.44 Stryker 101.84 -0.14 103.99 77.87 1.31 42.07 38537.19
HangSeng 157.00 1.00 161.50 123.20 3.51 19.82 38719.5
ChinaLife♦ 28.90 -0.75 41.00 21.00 1.37 16.78 27740.7 MmcNrlskNckl 9365 6.00 12247 6631 13.43 12.40 24864.62 Tesco 214.65 1.65 269.56 155.40 5.26 -3.06 27266.42 Fedex 171.27 -0.62 185.19 145.08 0.48 45.76 48371.82 Sychrony Fin 34.60 0.12 36.40 22.60 - 13.04 28848.25
HK Exc&Clr 210.20 -2.80 311.40 162.00 1.69 47.39 32468.55
ChinaMBank♦ 19.88 -0.17 26.85 13.12 4.10 6.54 11773.14 Rosneft 230.10 1.10 294.20 183.95 6.02 7.11 40915.75 Vodafone♦ 241.05 0.10 258.00 179.10 4.59 11.25 99782.98 FordMtr♦ 15.10 -0.11 17.87 13.26 3.62 16.47 58844.49 Target 81.93 0.09 85.81 57.26 2.47 20.48 52311.63
MTR 34.45 -0.40 40.00 29.95 2.67 12.81 25990.04
ChinaMob 99.90 1.05 118.00 84.45 3.16 14.91 263856.57 Surgutneftegas 32.94 0.39 39.80 21.82 2.64 2.41 19741.83 WPP 1461 -5.00 1616 1091 2.41 18.14 29550.29 Franklin 46.16 -0.35 59.43 45.90 1.23 12.48 28552.7 TE Connect 60.70 0.07 73.73 51.03 1.96 13.39 24424.74
SandsCh 32.90 -0.05 58.30 25.90 5.26 13.43 34244.34
ChinaPcIns 32.50 -0.85 47.10 26.55 1.62 17.52 11635.14 GenDyn♦ 150.28 0.32 153.40 114.10 1.73 17.50 49401.96 TexasInstr♦ 50.24 0.28 59.99 41.47 2.68 17.12 52267.86
SHK Props 120.10 0.30 137.60 106.30 2.79 10.98 44557.36 Saudi Arabia (SR) United States of America ($)
ChinaRailCons 10.16 -0.24 17.70 6.92 1.68 8.20 2721.19 GenElectric 26.12 -0.14 28.68 23.41 3.62 204.64 263183.27 TheTrvelers 106.50 0.07 110.49 88.81 2.11 9.77 33143.4
Tencent 142.80 -1.60 171.00 104.50 0.18 41.43 172739.23 AlRajhiBnk 65.22 0.34 79.50 48.40 2.95 16.04 28260.49 3M 151.57 0.12 170.50 130.60 2.49 19.10 96147.06
ChinaRailGp 6.67 -0.16 12.30 3.98 1.30 10.33 3620.08 GenGrwthPrp♦ 26.90 -0.08 31.70 22.92 2.46 25.54 23838.86 ThrmoFshr 139.12 -0.50 141.25 107.33 0.45 30.69 55377.68
India (Rs) Natnlcombnk 64.82 1.07 72.75 49.50 - 14.08 34476.06 AbbottLb♦ 50.77 -0.29 51.74 39.28 1.86 36.19 75584.21
ChMinsheng 8.73 -0.08 11.88 6.97 2.67 5.27 7808.18 GenMills♦ 58.26 0.77 58.36 48.32 2.93 28.85 34882.46 TimeWrnr 88.44 0.33 91.34 67.78 1.55 21.05 72927.84
Bhartiartl 416.95 -0.70 452.45 335.80 0.84 33.54 26036.35 SaudiBasic 96.78 0.74 136.50 70.25 5.47 11.93 77419.86 Abbvie♦ 70.16 -0.61 71.60 51.37 2.62 59.14 111770.22
ChMrchSecs RMB 21.41 -0.95 40.00 10.59 0.75 19.74 16560.56 GenMotors 31.91 -0.04 39.00 28.82 3.92 11.86 50545.36 TimeWrnrC 190.84 1.41 191.73 128.78 2.07 25.62 53947.83
HDFC Bk 1110.55 2.20 1128 791.40 0.72 25.96 41884.34 SaudiTelec 68.56 -3.44 76.50 55.00 5.37 11.79 36563.38 Accenture 102.66 0.21 103.31 73.98 2.03 22.67 81879.66
ChShenEgy 14.66 -0.34 24.40 14.38 8.16 6.90 6427.03 GileadSci 117.90 2.19 123.37 85.95 - 12.78 173266.55 TJX Cos 69.62 0.16 71.03 52.69 1.02 21.40 47368.4
Hind Unilevr 920.70 21.50 981.00 678.00 1.25 50.31 31105.13 Singapore (S$) Ace 108.59 0.60 117.89 99.45 2.52 12.41 35464.67
ChShpbldng RMB 14.50 0.56 20.19 4.86 0.33 127.95 41933.21 GoldmSchs 207.20 0.36 218.77 168.02 1.17 10.38 89513.69 T-MobileUS 38.86 1.82 40.77 24.26 - 94.10 31492.74
HsngDevFin 1335.8 23.75 1402.3 975.00 1.06 24.31 32887 DBS 20.71 -0.29 21.50 17.62 2.84 28.14 37776.54 Actavis 298.98 -2.94 317.72 201.91 - -31.33 117333.1
ChStConEng RMB 6.93 -0.31 12.52 3.10 2.17 8.31 33316.49 Google 664.56 3.13 713.33 490.91 - 33.28 192646.82 Twitter 31.47 0.23 55.99 31.05 - -30.65 21135.08
ICICI Bk 291.00 1.75 393.40 280.35 3.40 12.90 26353.17 JardnMt US$ 54.98 -0.02 67.88 52.42 2.57 11.91 38409.39 Adobe 81.29 1.04 84.36 58.51 - 110.50 40453.59
ChUncHK 10.68 0.02 16.00 9.68 2.00 16.92 32991.41 Halliburton 42.29 -1.00 71.86 37.21 1.62 24.95 36147.34 UnionPac 97.70 -0.83 124.52 91.23 2.13 16.92 84773.47
Infosys 1070 -15.40 2336 932.65 3.47 19.18 38203.59 JardnStr US$ 30.18 -0.14 37.84 29.87 0.86 9.97 33804.69 AEP 56.32 0.38 65.38 49.06 3.68 15.94 27628.32
CSR 9.90 -0.18 20.70 6.80 1.20 18.97 5582.16 HCA Hold 92.96 -0.60 95.49 62.50 - 18.56 38515.23 UPS B 101.40 0.51 114.40 94.05 2.84 28.17 71133.72
ITC♦ 315.95 11.95 409.95 294.00 1.67 28.38 39253.41 OCBC 10.27 -0.07 10.92 9.51 3.54 9.41 30206.3 Aetna♦ 114.15 1.55 134.40 71.81 1.08 17.95 39861.18
Daqin RMB 9.83 -0.30 15.15 7.01 4.61 9.72 23534.58 Hew-Pack 30.62 0.32 41.10 29.52 2.12 12.05 55312.43 USBancorp 45.06 0.05 46.26 38.10 2.29 13.76 79892.96
L&T 1773.75 -16.55 1893.8 1401 0.82 29.33 25683.22 SingTel♦ 4.11 -0.16 4.57 3.63 4.31 16.46 47630.8 Aflac 64.04 -0.50 65.10 54.99 2.50 9.50 27785.95
GF Secs RMB 18.33 -0.97 32.88 10.09 1.15 15.29 17473.04 HiltonWwde 26.54 -1.17 31.60 20.72 - 40.51 26206.89 Utd Cntl Hldg 56.84 -0.37 74.52 39.46 - 8.31 21472.01
OilNatGas 270.90 1.15 457.95 263.45 3.61 8.71 36205.29 UOB 22.93 -0.02 25.05 21.53 3.22 10.70 26705.5 AirProd♦ 142.34 8.20 158.20 118.20 2.31 28.41 30569.62
GuosenSec - - - - - - - HlthcareREIT 68.81 -0.50 84.88 62.05 4.91 55.46 24126.62 UtdHlthcre 120.56 -0.96 126.05 78.74 1.34 19.33 114761.58
RelianceIn 1000.15 4.15 1067.85 796.45 0.96 12.56 50566.04 Alexion 199.29 0.53 208.88 150.06 - 64.90 39773.65
HaitongSecs 14.10 0.16 27.90 11.50 1.13 9.81 6201.49 South Africa (R) HomeDep 116.46 0.09 117.99 79.66 1.74 23.27 151278.75 UtdTech 100.73 1.37 124.45 97.30 2.42 14.56 89709.91
SBI NewA 256.80 3.20 336.00 234.61 1.17 11.92 29949.23 Allstate 69.16 0.12 72.87 56.63 1.73 10.09 28287.34
HuataiSec RMB 19.05 -1.17 34.31 8.25 0.83 17.78 16700.42 Firstrand 53.90 -0.95 58.47 40.27 3.56 13.55 23739.41 Honywell 105.38 -0.16 107.10 82.89 1.89 19.03 82382.12 ValeroEngy 64.23 -1.81 68.27 42.53 1.96 8.37 32668.75
SunPhrmInds 814.25 -15.50 1200.8 743.30 0.19 28.06 26344.54 Altria 54.20 -0.20 56.70 40.26 3.81 21.12 106587.43
In&CmBkCh 5.36 -0.10 7.10 4.74 6.42 5.22 60011.14 MTN Grp 206.10 1.60 263.44 198.00 5.94 10.73 29864.07 HumanaInc♦ 183.70 -0.71 219.79 115.51 0.61 21.89 27514.82 Verizon♦ 46.67 0.11 52.15 45.09 4.68 19.61 189745.82
Tata Cons♦ 2480.65 -26.10 2839.7 2345 1.39 22.24 75902.81 Amazon 536.76 7.76 580.57 284.00 - -1337.46 251048.14
IndstrlBk RMB 15.30 -0.30 21.42 9.99 3.17 5.70 39865.44 Naspers N 1769.1 -3.73 2029.97 1130.01 0.27 46.24 58229.83 IBM 160.96 -0.13 195.99 149.52 2.84 10.80 157665.12 VertexPharm 135.46 9.84 137.50 84.41 - -43.35 33018.68
Tata Motors 377.45 1.00 612.40 366.10 0.53 8.03 19151.29 AmerAir 40.27 -0.46 56.20 28.10 0.99 7.01 27054.21
Kweichow RMB 205.95 -1.85 290.00 145.50 2.03 15.34 37875.95 South Korea (KRW) IllinoisTool 89.28 -0.06 100.14 79.06 2.21 17.38 32827.48 VF Cp 76.66 0.66 77.83 59.82 1.60 30.67 32578.6
AmerExpr♦ 76.12 0.42 94.89 74.30 1.73 13.36 77322.37
PetroChina♦ 7.79 -0.04 11.70 7.40 5.51 13.92 21201.86 Indonesia (Rp) HyundMobis 211000 500.00 312000 185500 1.57 8.68 17255.18 Illumina 218.87 1.68 242.37 145.12 - 71.87 31539.17 Viacom 56.36 -0.24 86.35 55.55 2.46 12.61 19533.97
AmerIntGrp 64.53 -0.01 64.93 48.56 0.81 10.43 86044.01
PingAnIns♦ 44.75 -0.75 62.90 28.53 1.03 12.05 42991.81 Astra Int 6575 150.00 8575 6325 3.50 12.23 19764.48 KoreaElePwr 48600 100.00 50400 38750 1.14 8.26 26706.14 Intcntl Exch 229.05 1.34 242.96 184.27 0.90 23.94 25495.45 Visa Inc 76.38 0.37 76.92 48.80 0.60 32.28 149046.96
Amerisrcbrgn 104.47 -3.31 120.68 74.32 1.06 -33.56 22950.55
PngAnBnk RMB 12.26 -0.34 17.50 8.32 1.15 7.86 23305.45 Bk Cent Asia 12800 -50.00 15600 10950 1.06 17.26 23433.11 SK Hynix 34500-2500.00 51700 34050 0.96 5.41 21498.88 Intel 28.91 -0.10 37.90 27.62 3.19 12.35 137438.14 Walgreen 96.54 -0.04 97.27 57.75 1.43 24.23 105301.63
AmerTower 94.95 -1.37 105.20 90.20 1.55 46.49 40172.3
SaicMtr RMB 19.12 -0.69 29.18 15.74 6.61 7.03 33948.82 BnkRakyat 9350 -150.00 13450 9350 6.40 8.71 17126.81 SmsungEl 1215000-48000.00 1510000 1078000 1.82 7.12 134487.37 Intuit 105.74 0.22 109.21 77.96 0.90 93.34 29149.23 WalMartSto 72.16 -0.07 90.97 70.36 2.73 14.54 232394.79
Amgen 171.69 0.22 174.80 124.76 1.60 22.04 130539.97
ShenwanHong - - - - - - - Israel (ILS) Spain (€) John&John 99.84 0.11 109.49 95.10 2.95 17.01 276860.85 WasteMgmt 51.20 0.50 55.93 43.97 2.95 23.69 23155.22
Anadarko 76.63 0.35 113.51 69.40 1.40 -15.57 38928.97
ShgPdgBk RMB 14.90 -0.39 19.17 9.36 4.67 5.55 35807.35 TevaPha 271.10 3.30 275.90 176.00 1.96 21.24 60269.45 BBVA 9.27 -0.04 9.91 7.21 0.89 15.10 63825.91 JohnsonCn 45.59 0.44 54.52 38.60 2.21 18.93 29853.73 Wellpoint 128.71 0.94 129.96 81.84 1.64 12.65 34744.16
Aon Cp♦ 101.94 0.36 107.08 78.26 1.03 20.40 28731.02
Sinopec 5.89 -0.01 8.23 5.72 5.40 15.22 19384.86 BcoSantdr 6.28 -0.22 7.96 5.77 9.32 12.46 98174.02 JPMrgnCh♦ 69.04 0.10 70.61 54.26 2.44 12.02 256213.46 WellsFargo 58.15 0.19 58.77 46.44 2.53 13.51 299426.27
Italy (€) AppldMat 17.57 0.02 25.71 17.13 2.31 16.87 21639.18
Denmark (kr) CaixaBnk 4.16 -0.01 5.00 3.71 - 28.97 26195.7 Kimb-Clark 114.57 1.07 119.01 99.20 2.98 65.26 41734.99 Williams Cos 52.98 -1.03 61.38 40.07 4.24 18.26 39679.98
Enel 4.22 -0.03 4.50 3.36 3.18 81.68 43371.48 Apple 122.37 -0.62 134.54 93.28 1.57 14.25 697842.09
DanskeBk 210.20 0.10 217.10 139.20 2.65 32.42 31043.55 Iberdrola 6.41 0.01 6.49 5.11 2.45 16.18 43696.41 KinderM♦ 35.03 -0.21 44.71 33.25 5.10 49.51 76783.56 Yahoo 37.42 -0.25 52.62 35.15 - 4.84 35116.52
ENI 15.92 0.08 19.79 12.98 7.21 106.79 63205.28 ArcherDan 47.82 -0.31 53.91 41.63 2.20 11.95 29890.92
MollerMrsk 11510 70.00 16450 11020 2.71 13.27 36164.67 Inditex 30.80 0.04 31.45 19.29 1.36 35.19 104867.86 Kraft 88.19 -0.11 91.32 53.33 2.56 52.15 52233.16 Yum!Brnds♦ 88.02 0.25 95.90 65.81 1.80 43.41 37954.71
Generali 17.91 0.31 19.21 14.40 2.60 14.79 30461.56 AT&T♦ 34.80 0.11 36.63 32.07 5.62 29.90 180716.4
NovoB 397.20 -2.80 409.70 239.30 1.30 33.68 154122.57 Repsol 15.38 -0.64 19.50 14.26 2.58 16.11 23090.04 Kroger 39.00 0.20 39.34 24.29 0.91 20.52 18942.75
IntSPaolo 3.46 0.02 3.65 2.00 1.49 29.41 59898.4 AutomData 80.13 -2.21 90.23 70.50 2.55 22.62 37622.96
Telefonica 13.81 0.05 14.12 10.76 2.96 22.73 74477.9 L Brands 81.34 -1.40 95.78 57.21 1.90 21.06 23748.39 Closing prices and highs & lows are in traded currency (with variations for that
Finland (€) Luxottica 66.25 -0.30 67.30 34.74 1.10 41.65 34975.56 Avago Tech 127.65 -0.93 150.50 68.71 1.07 50.61 33154.5
LasVegasSd 56.01 1.74 75.08 49.57 4.04 16.61 44731.62 country indicated by stock), market capitalisation is in USD. Highs & lows are
Nokia 6.43 0.45 7.87 5.65 1.77 21.06 25817.23 Unicred 5.97 - 6.61 4.82 - 14.76 38917.64 Sweden (SKr) BakerHu 58.69 -0.98 72.76 47.51 1.15 99.22 25581.93
LibertyGbl 52.41 0.05 58.66 39.95 - -35.81 13210.82 based on intraday trading over a rolling 52 week period.
SampoA 45.17 0.14 49.40 34.77 3.78 15.07 27574.64 Japan (¥) AtlasCpcoB 210.10 2.80 270.00 165.20 1.48 18.92 29627.01 BankAm 18.13 -0.03 18.48 14.84 1.10 19.47 190403.08
Lilly (E) 84.54 -0.55 90.18 60.14 2.45 39.32 93817.52 ♦ ex-dividend
France (€) AstellasPh 1852 -78.50 2047 1390 1.77 27.62 33094.59 Ericsson 91.90 0.85 120.00 81.05 3.82 28.34 35164.24 Baxter 40.01 1.51 41.94 34.77 5.47 11.19 21775.61
LinkedIn 227.15 -4.85 276.18 178.76 - -596.83 25049.6 ■ ex-capital redistribution
Airbus Grpe 62.41 0.29 66.10 39.64 1.24 17.55 53697.22 Bridgestne 4651 197.50 5182 3328 2.34 11.13 30415.73 H&M 340.30 1.50 368.50 269.60 2.96 25.23 65206.86 BB & T 40.61 - 41.90 34.50 2.49 14.13 29367.51
Lockheed 206.47 -1.68 210.41 162.52 2.80 18.48 64116.06 # price at time of suspension
AirLiquide 117.05 1.55 123.95 87.17 2.20 21.84 43990.79 Canon 3927 -38.50 4539 3172 4.11 18.71 42125.63 Investor 330.80 0.10 363.40 219.30 2.81 4.65 29381.53 BectonDick 152.00 0.01 152.49 112.15 1.58 26.52 31826.62
Lowes♦ 68.86 0.12 76.25 47.27 1.36 24.02 64224.73
CntJpRwy 21500 -830.00 24800 13320 0.61 14.69 35621.51 Nordea Bk 106.00 -0.20 115.50 82.40 5.59 11.58 49476.36 BerkshHat 214745 425.00 229374 185005 - 16.50 183919

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
Amazon 536.76 529.00 7.76 1.47 54.58 11.3 23.65 Naspers N 1769.10 1772.83 -3.73 -0.21 -185735.90 -99.1 -6.64 Jul 30 date Coupon S* M* F* price yield yield yield US Jul 30 date Coupon S* M* F* price yield yield yield US
MondelezInt 45.27 43.10 2.17 5.03 3.15 7.5 10.04 MTN Grp 206.10 204.50 1.60 0.78 -21594.90 -99.1 -9.90 High Yield US$ US$
Safran 67.51 61.35 6.16 10.04 4.67 7.4 11.05 Firstrand 53.90 54.85 -0.95 -1.73 -5475.10 -99.0 1.09 Windstream Services, LLC 11/17 7.88 BB- B1 BB 100.36 7.84 0.00 3.06 7.10 Merrill Lynch & Co., Inc. 09/26 6.22 BBB+ Baa3 A- 114.76 4.57 0.00 -0.23 2.30
NTTDCMo 2652.50 2533.50 119.00 4.70 180.00 7.3 13.34 PingAnIns 44.75 45.50 -0.75 -1.65 -51.85 -53.7 -12.68 High Yield Euro Bank of America Corporation 10/26 4.25 BBB+ Baa3 A- 97.75 4.56 0.00 -0.07 2.29
AirProd 142.34 134.14 8.20 6.11 9.63 7.3 4.03 Biogen 317.00 313.34 3.66 1.17 -68.05 -17.7 -21.52 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 93.75 - 0.00 0.00 - Halliburton Company 02/27 6.75 A A2 A- 120.43 4.51 0.00 0.04 -
ReynoldsAm 85.35 84.54 0.81 0.96 5.58 7.0 14.32 MylanNV 56.35 57.24 -0.89 -1.55 -10.21 -15.3 -16.96 Korea Electric Power Corporation 08/27 6.75 A+ Aa3 AA- 97.72 7.16 0.00 -0.03 -
NipponTT 4847.00 4809.50 37.50 0.78 303.50 6.7 10.52 ChStConEng 6.93 7.24 -0.31 -4.28 -1.08 -13.5 -9.06 Emerging US$ SouthTrust Bank 12/27 6.57 A+ Aa3 A+ 119.14 4.58 0.00 -0.09 -
HyundMobis 211000.00 210500.00 500.00 0.24 13000.00 6.6 0.48 Daqin 9.83 10.13 -0.30 -2.96 -1.53 -13.5 -25.47 Peru 05/16 8.38 BBB+ A3 BBB+ 105.18 1.41 0.00 0.19 0.68 FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa3 A- 119.15 4.87 0.00 -0.15 -
SandsCh 32.90 32.95 -0.05 -0.15 2.00 6.5 23.45 Twitter 31.47 31.24 0.23 0.74 -4.72 -13.0 -13.31 Mexico 09/16 11.40 BBB+ A3 BBB+ 111.50 0.99 0.04 -0.07 0.25
Brazil 01/18 8.00 BBB- Baa2 BBB 108.30 4.39 0.09 -0.03 3.65 Euro
Visa Inc 76.38 76.01 0.37 0.49 4.63 6.5 13.64 Fanuc 20745.00 20700.00 45.00 0.22 -3100.00 -13.0 -17.10 Goldman Sachs Group, Inc. (The) 06/26 2.88 A- A3 A 105.37 2.31 0.00 -0.08 0.04
Raytheon 109.84 109.20 0.64 0.59 6.63 6.4 14.80 SaicMtr 19.12 19.81 -0.69 -3.48 -2.80 -12.8 -8.87 Russia 07/18 11.00 BB+ Ba1 BBB- 120.72 3.63 0.00 0.00 2.89
Peru 03/19 7.13 BBB+ A3 BBB+ 116.51 2.40 0.00 0.01 0.77 Credit Agricole S.A. 03/27 2.63 BBB Baa3 A- 94.97 3.15 0.00 -0.38 -
MicronTech 19.90 19.87 0.03 0.15 1.20 6.4 5.63 ChinaRailCons 10.16 10.40 -0.24 -2.31 -1.44 -12.4 -13.31 B.A.T. Netherlands Fin B.V. (Re - British American Tobacco) 03/29 3.13 A- A3 A- 110.71 2.20 0.00 -0.36 -
UnionPac 97.70 98.53 -0.83 -0.84 5.58 6.1 2.44 Renault 83.13 90.35 -7.22 -7.99 -10.35 -11.1 -11.01 Brazil 01/21 7.88 BBB- Baa2 BBB 102.47 4.41 0.00 0.40 2.78
Turkey 03/21 5.63 - Baa3 BBB- 107.11 4.24 0.00 0.11 2.62 Philip Morris Intl, Inc. 05/29 2.88 A A2 A 107.84 2.21 0.00 -0.29 -
Northrop 175.41 173.44 1.97 1.14 9.91 6.0 10.58 ChinaRailGp 6.67 6.83 -0.16 -2.34 -0.83 -11.1 -17.65
Poland 04/21 5.13 A- A2 A- 111.96 2.86 0.00 -0.18 1.23 Yen
Vale 18.35 18.35 0.00 0.00 1.03 5.9 -4.59 CapOne 81.50 79.62 1.88 2.36 -9.27 -10.2 -7.35
Colombia 07/21 4.38 BBB Baa2 BBB 103.42 3.76 0.00 0.18 2.13 Wal-Mart Stores, Inc. 07/15 0.94 NR WR NR 100.00 0.31 0.00 0.00 -
Anadarko 76.63 76.28 0.35 0.46 4.09 5.6 -1.81 SK Hynix 34500.00 37000.00 -2500.00 -6.76 -3700.00 -9.7 -19.01
UPS B 101.40 100.89 0.51 0.51 5.29 5.5 4.31 BnkRakyat 9350.00 9500.00 -150.00 -1.58 -1000.00 -9.7 -9.66 Turkey 04/26 4.25 - Baa3 BBB- 94.41 4.99 0.00 0.00 2.72 £ Sterling
Baxter 40.01 38.50 1.51 3.92 2.04 5.4 5.32 HuataiSec 19.05 20.22 -1.17 -5.79 -1.97 -9.4 -9.63 Emerging Euro IPIC GMTN Limited 03/26 6.88 AA Aa2 AA 127.16 3.73 0.00 0.17 1.46
FastRetail 61930.00 60230.00 1700.00 2.82 3140.00 5.3 13.43 PngAnBnk 12.26 12.60 -0.34 -2.70 -1.26 -9.3 -9.59 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 B.A.T. Intl Fin plc (Re - British American Tobacco) 09/26 4.00 A- A3 A- 105.83 3.36 0.02 -0.16 1.09
NXP 97.87 91.80 6.07 6.61 4.87 5.2 -0.34 Keyence 61490.00 61770.00 -280.00 -0.45 -6210.00 -9.2 -6.97 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.76 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M -
Mexico 02/20 5.50 BBB+ - BBB+ 109.57 3.20 0.00 -0.07 1.57 Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 09/25 5.75 BB+ - BBB- 116.42 3.82 0.00 -0.17 1.55
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Jul 30 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jul 30 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.00-0.14 16-12-2008 0.14 0.00-0.25 0.00-0.25 Index change change change 1 month 1 year VIX 12.13 -0.37 12.50 31.06 11.24 Jul 30 Price £ Yield Day Week Month Year High Low £m
US Prime 3.25 16-12-2008 3.25 3.25 3.25 Markit IBoxx VXD 12.96 -0.32 13.28 23.19 7.04 Tr 2pc '16 100.70 0.52 1.96 0.00 4.00 -38.82 101.97 100.70 0.32
US Discount 0.75 18-02-2010 0.75 0.75 0.75 ABF Pan-Asia unhedged 175.91 0.06 -0.90 -1.33 -0.63 -2.49 VXN 14.44 -0.52 14.96 31.17 11.15 Tr 1.75pc '17 101.65 0.62 3.33 -4.62 3.33 -50.00 102.68 101.29 0.29
Euro Repo 0.05 10-09-2014 0.15 0.05 0.25 Corporates( £) 294.18 -0.20 1.16 0.23 1.28 6.48 VDAX 19.30 0.00 19.30 27.09 - Tr 5pc '18 110.68 0.84 2.44 -2.33 1.20 -47.83 113.65 110.68 0.35
UK Repo 0.50 05-03-2009 0.50 0.50 0.50 Corporates($) 249.92 -0.16 0.22 -0.22 0.22 -0.22 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.5pc '19 111.86 1.13 1.80 -3.42 -1.74 -39.25 115.07 111.57 0.36
Japan O'night Call 0.00-0.03 05-10-2010 0.03 0.00-0.10 0.00-0.10 Corporates(€) 211.50 -0.03 1.00 -0.56 1.03 2.05 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 4.75pc '20 115.03 1.37 0.74 -2.84 -2.14 -33.82 119.04 114.05 0.33
Switzeland Libor Target 0.00-0.25 03-08-2011 0.00-0.75 0.00-0.25 0.00-0.25 Eurozone Sov(€) 222.53 -0.11 1.76 0.39 2.00 4.85 Tr 8pc '21 135.85 1.57 0.64 -3.09 -2.48 -29.60 142.92 135.31 0.24
Gilts( £) 283.79 -0.23 0.80 -0.65 1.12 8.56 BONDS: BENCHMARK GOVERNMENT Tr 4pc '22 114.59 1.66 0.00 -2.35 -2.92 -29.36 119.85 111.23 0.38
INTEREST RATES: MARKET Global Inflation-Lkd 247.53 0.05 0.09 -1.32 1.08 -3.75 Red Bid Bid Day chg Wk chg Month Year Tr 5pc '25 126.39 1.97 0.00 -2.48 -4.83 -26.77 134.70 120.83 0.35
Over Change One Three Six One Markit iBoxx £ Non-Gilts 293.81 -0.19 0.90 0.11 1.05 6.44 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '27 122.28 2.18 -0.46 -3.11 -4.80 -24.57 131.90 114.66 0.31
Jul 30 (Libor: Jul 29) night Day Week Month month month month year Overall ($) 224.91 -0.12 0.50 0.33 0.50 0.33 Australia 10/18 3.25 104.02 1.95 0.02 0.01 -0.15 -0.98 Tr 4.25pc '32 125.06 2.43 -0.41 -2.80 -4.33 -21.61 136.85 115.47 0.35
US$ Libor 0.12600 0.000 -0.002 -0.001 0.18955 0.29680 0.47465 0.80110 Overall( £) 284.14 -0.22 0.83 -0.41 1.10 7.88 04/26 4.25 111.97 2.94 0.03 0.02 -0.25 -0.71 Tr 4.25pc '36 127.18 2.55 -0.39 -3.04 -3.77 -20.56 140.37 116.00 0.26
Euro Libor -0.18000 0.000 0.000 -0.001 -0.08429 -0.01571 0.05557 0.16786 Overall(€) 218.87 -0.09 1.41 0.17 1.56 3.92 Austria 10/18 1.15 103.64 0.05 0.00 0.00 0.00 0.00 Tr 4.5pc '42 137.28 2.59 -0.77 -3.36 -4.43 -20.55 153.16 122.75 0.26
£ Libor 0.48250 0.000 0.000 -0.001 0.50838 0.57906 0.75094 1.07056 Treasuries ($) 216.29 -0.11 0.70 0.57 0.70 0.57 10/25 1.20 102.79 0.91 -0.07 -0.08 -0.36 0.00 Tr 3.75pc '52 128.24 2.56 -0.78 -3.76 -4.83 -21.95 145.21 110.28 0.22
Swiss Fr Libor -0.004 -0.78800 -0.73900 -0.69100 -0.58500 FTSE Belgium 06/18 0.75 101.60 0.18 0.01 0.01 -0.01 -0.37 Tr 4pc '60 139.83 2.51 -0.79 -3.83 -4.56 -22.53 159.23 118.05 0.21
Yen Libor 0.001 0.06143 0.09786 0.13143 0.24829 Sterling Corporate (£) 111.27 0.02 - - 0.67 2.01 06/25 0.80 98.58 0.95 -0.06 -0.10 -0.37 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
Euro Euribor -0.001 -0.07400 -0.02200 0.04800 0.16900 Euro Corporate (€) 107.44 0.15 - - 0.84 -0.34 Canada 05/17 0.25 99.64 0.46 0.01 0.04 -0.02 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Sterling CDs 0.000 0.51000 0.60000 0.78500 Euro Emerging Mkts (€) 871.17 1.68 - - -2.72 -9.22 06/25 2.25 106.79 1.50 -0.01 0.00 -0.24 0.00
US$ CDs
Euro CDs
0.000
0.000
0.17000
-0.10500
0.26000
-0.06500
0.41000
-0.00500
Eurozone Govt Bond 113.53 0.34 - - 2.03 2.42 Denmark 11/16 2.50 103.73 -0.39 0.00 0.00 0.00 0.00 GILTS: UK FTSE ACTUARIES INDICES
CREDIT INDICES Day's Week's Month's Series Series 11/25 1.75 109.16 0.82 -0.05 -0.09 -0.26 -0.71
Price Indices Day's Total Return Return
Short 7 Days One Three Six One Index change change change high low Finland 05/18 1.00 99.57 1.16 0.00 -0.04 0.00 0.00
Fixed Coupon Jul 30 chg % Return 1 month 1 year Yield
Jul 30 term notice month month month year Markit iTraxx 07/25 4.00 126.99 1.13 0.00 0.00 0.00 0.00
1 Up to 5 Years 98.87 -0.04 2346.69 0.02 2.53 1.14
Euro -0.20 -0.10 -0.20 -0.10 -0.20 -0.05 -0.15 0.00 -0.08 0.07 0.07 0.22 Crossover 5Y 288.66 2.27 8.53 -38.96 356.33 242.25 France 11/16 0.25 100.61 -0.21 0.00 0.00 0.00 0.00
2 5 - 10 Years 178.59 -0.01 3178.40 0.36 6.18 1.78
Sterling 0.40 0.55 0.40 0.55 0.46 0.56 0.55 0.65 0.71 0.86 1.03 1.18 Europe 5Y 63.78 1.12 2.54 -11.33 81.85 52.94 11/19 0.50 101.87 0.07 -0.03 -0.05 -0.17 -0.48
3 10 - 15 Years 203.43 0.07 3714.27 0.89 9.45 2.17
Swiss Franc - - - - - - - - - - - - Japan 5Y 57.61 -0.15 0.90 -2.87 64.46 48.09 05/25 0.50 95.89 0.94 -0.07 -0.10 -0.36 0.00
4 5 - 15 Years 184.37 0.00 3308.41 0.47 7.15 1.90
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 74.95 1.08 5.78 -14.60 100.19 62.28 05/45 3.25 131.43 1.87 -0.07 -0.10 -0.46 -0.66
5 Over 15 Years 293.65 0.30 4213.23 1.84 15.77 2.54
US Dollar 0.12 0.22 0.12 0.22 0.15 0.25 0.25 0.35 0.50 0.60 0.85 0.90 Germany 04/18 0.25 101.37 -0.26 0.00 0.00 0.00 0.00
Markit CDX 7 All stocks 171.35 0.11 3169.45 0.86 8.63 2.31
Japanese Yen -0.07 0.03 -0.15 0.00 -0.10 0.10 -0.10 0.10 -0.05 0.15 0.00 0.20 10/20 0.25 101.06 0.05 -0.03 -0.05 -0.11 0.00
Emerging Markets 5Y 311.26 -6.47 5.63 5.64 326.58 278.35 08/25 1.00 103.34 0.66 -0.06 -0.09 0.00 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Day's Month Year's Total Return Return
Nth Amer High Yld 5Y 353.31 -7.86 -0.69 4.27 370.30 337.73 08/46 2.50 128.93 1.35 -0.08 -0.10 -0.34 -0.72
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. Index Linked Jul 30 chg % chg % chg % Return 1 month 1 year
Nth Amer Inv Grade 5Y 70.19 -0.77 1.65 1.72 73.29 60.22 Greece 07/17 3.38 73.75 21.12 -0.53 1.46 -13.44 17.68
Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 100.00 100.00 1 Up to 5 Years 309.68 -0.01 -0.86 -2.19 2354.71 -0.45 -0.84
02/25 3.00 53.10 11.92 -0.10 0.79 -2.52 5.72 2 Over 5 years 573.92 0.72 1.87 15.94 4227.01 2.00 16.88
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. Ireland 10/17 5.50 112.30 -0.07 0.00 0.00 0.00 0.00 3 5-15 years 429.44 0.23 -0.06 3.10 3254.89 0.15 4.46
03/25 5.40 137.49 1.24 -0.08 -0.11 -0.44 -1.13 4 Over 15 years 709.03 0.92 2.64 22.66 5126.73 2.75 23.41
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 05/18 0.25 99.85 0.30 -0.03 -0.03 -0.34 0.00 5 All stocks 531.16 0.61 1.45 14.00 3960.81 1.63 15.01
05/20 0.70 99.47 0.81 -0.06 -0.05 -0.45 0.00
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
06/25 1.50 97.09 1.83 -0.07 -0.07 -0.49 0.00 Yield Indices Jul 30 Jul 29 Yr ago Jul 30 Jul 29 Yr ago
Crude Oil† Aug 48.39 -0.41 Corn♦ Sep 374.50 7.25 Jul 29 Jul 29 Prev return stock Market stocks
09/46 3.25 107.82 2.89 -0.05 -0.10 -0.42 0.00 5 Yrs 1.43 1.42 1.95 20 Yrs 2.56 2.57 3.20
Brent Crude Oil‡ 53.30 -0.30 Wheat♦ Sep 497.25 1.50 Can 4.25%' 21 130.35 -0.462 -0.502 -0.22 5.18 71879.12 7
Japan 07/17 0.10 100.18 0.01 0.00 0.00 0.00 0.00 10 Yrs 2.08 2.08 2.69 45 Yrs 2.53 2.55 3.26
RBOB Gasoline† Aug 1.77 -0.07 Soybeans♦ Aug 993.00 10.00 Fr 2.25%' 20 114.79 -0.658 -0.634 -0.57 20.31 220443.83 15
07/20 0.05 99.64 0.12 0.00 0.00 -0.05 0.00 15 Yrs 2.41 2.42 3.03
Heating Oil† Aug 1.61 -0.01 Soybeans Meal♦ Aug 358.00 7.70 Swe 0.25%' 22 108.64 -0.830 -0.851 1.09 30.63 220513.25 6
06/25 0.40 99.84 0.42 0.01 0.00 -0.10 0.00
Natural Gas† Aug 2.78 -0.08 Cocoa (ICE Liffe)X Sep 2144.00 5.00 UK 2.5%' 16 323.69 -1.294 -1.307 -0.20 7.90 498737.00 25
06/45 1.60 103.77 1.42 0.01 0.02 -0.06 0.00 inflation 0% inflation 5%
Ethanol♦ - - Cocoa (ICE US)♥ Sep 3227.00 16.00 UK 2.5%' 24 338.65 -0.717 -0.748 -0.12 6.82 498737.00 25
Netherlands 04/17 0.50 101.25 -0.23 0.00 0.00 0.00 0.00 Real yield Jul 30 Dur yrs Previous Yr ago Jul 30 Dur yrs Previous Yr ago
Uranium Aug 36.75 0.00 Coffee(Robusta)X Sep 1648.00 10.00 UK 2%' 35 230.83 -0.735 -0.756 0.68 9.08 498737.00 25
07/25 0.25 94.54 0.82 -0.06 -0.09 -0.33 0.00 Up to 5 yrs -0.72 2.76 -0.72 -1.02 -1.41 2.78 -1.42 -1.77
Carbon Emissions - - Coffee (Arabica)♥ Sep 125.00 3.25 US 0.625%' 21 102.24 0.246 0.250 -0.54 35.84 1087368.77 36
Diesel Sep 121.25 0.00 White SugarX 353.50 -3.70 New Zealand - - - - - - - Over 5 yrs -0.81 23.50 -0.78 -0.12 -0.84 23.59 -0.81 -0.16
US 3.625%' 28 135.86 0.676 0.250 0.24 16.78 1087368.77 36
Unleaded Sep - - Sugar 11♥ 11.25 -0.23 12/17 6.00 107.63 2.65 -0.01 0.05 -0.10 -1.25 5-15 yrs -0.69 9.97 -0.67 -0.27 -0.81 9.99 -0.78 -0.40
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Norway 05/17 4.25 106.34 0.68 -0.01 -0.03 -0.06 -0.73 Over 15 yrs -0.82 29.11 -0.79 -0.09 -0.84 29.16 -0.81 -0.12
Base Metals (♠ LME 3 Months) Cotton♥ Oct 64.21 0.04 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
03/25 1.75 101.41 1.59 -0.03 -0.05 -0.26 0.00 All stocks -0.81 20.39 -0.78 -0.13 -0.85 20.54 -0.82 -0.18
Aluminium 1640.00 -19.50 Orange Juice♥ Sep 123.50 0.65 amount.
Aluminium Alloy 1740.00 -60.00 Palm Oil♣ Aug 556.75 3.25 Portugal 02/16 6.40 103.55 -0.25 0.00 0.00 0.00 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
Copper 5254.50 -72.00 Live Cattle♣ Aug 145.25 0.40 BONDS: TEN YEAR GOVT SPREADS 10/25 2.88 103.85 2.44 -0.08 -0.12 -0.55 0.00
Lead 1714.50 -6.00 Spain 04/18 0.25 99.78 0.33 -0.03 -0.03 -0.30 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Feeder Cattle♣ Aug 211.08 -0.43
Nickel 11030.00 -210.00 Lean Hogs♣ Aug 79.45 -0.83 Spread Spread Spread Spread 10/25 2.15 101.30 2.01 -0.05 -0.02 -0.37 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Tin 16235.00 65.00 Bid vs vs Bid vs vs Sweden 01/18 0.88 99.53 1.07 0.00 -0.03 0.02 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Zinc 1948.50 -14.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 05/25 2.50 116.51 0.74 0.00 -0.03 -0.21 0.00 loss arising from the reliance on or use of the listed information. For all queries e-mail
Precious Metals (PM London Fix) Jul 29 Month Year Australia 2.94 2.28 0.67 Italy 1.83 1.18 -0.44 Switzerland 10/16 2.00 103.35 -0.79 0.00 0.00 0.00 0.00 ft.reader.enquiries@morningstar.com
Gold 1087.50 -2.75 S&P GSCI Spt 383.65 -2.85 - Austria 0.91 0.26 -1.36 Japan 0.42 -0.24 -1.85 05/26 1.25 113.05 0.04 -0.02 -0.02 -0.17 -0.68
Silver (US cents) 1464.00 3.00 DJ UBS Spot 92.62 -2.76 - Belgium 0.95 0.30 -1.32 Netherlands 0.82 0.17 -1.45 United Kingdom 07/18 1.25 100.57 1.05 0.01 -0.02 0.00 -0.72 Data provided by Morningstar | www.morningstar.co.uk
Platinum 984.00 1.00 R/J CRB TR 205.25 -8.44 -30.97 Canada 1.50 0.85 -0.77 Norway 1.59 0.94 -0.68 07/20 2.00 102.31 1.52 0.00 -0.03 -0.03 0.00
Palladium 621.00 -3.00 Rogers RICIX TR 2443.25 - - Denmark 0.82 0.16 -1.45 Portugal 2.44 1.79 0.17 09/25 2.00 99.17 2.09 -0.01 -0.04 -0.10 0.00
Bulk Commodities M Lynch MLCX Ex. Rtn 285.43 -10.52 -35.81 Finland 1.13 0.48 -1.14 Spain 2.01 1.35 -0.26 01/45 3.50 117.83 2.63 -0.03 -0.09 -0.17 0.00
Iron Ore (Platts) 55.50 -1.25 UBS Bberg CMCI TR 14.23 -8.66 -31.88 France 0.94 0.29 -1.33 Switzerland 0.04 -0.61 -2.23 United States 06/17 0.63 99.79 0.74 0.05 0.03 0.11 0.00
Iron Ore (The Steel Index) 54.60 -0.70 LEBA EUA Carbon 7.51 -0.27 30.84 Germany 0.66 0.00 -1.61 United Kingdom 2.09 1.44 -0.18 06/20 1.63 99.98 1.63 0.01 -0.01 0.00 0.00
GlobalCOAL RB Index 56.40 0.15 LEBA CER Carbon 0.47 17.50 291.67 Greece 11.92 11.26 9.65 United States 2.27 1.61 0.00 05/25 2.13 98.74 2.27 -0.03 0.00 -0.11 0.00
Baltic Dry Index 1100.00 -4.00 LEBA UK Power 4039.00 -4.42 138.29 Ireland 1.24 0.58 -1.03 05/45 3.00 100.88 2.96 -0.04 -0.02 -0.23 0.00
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information & Tullett Prebon Information Data provided by SIX Financial Information & Tullett Prebon Information
unless otherwise stated.
24 ★★★ FINANCIAL TIMES Friday 31 July 2015

FINANCIAL TIMES SHARE SERVICE

Main Market
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence DBAG € 29.11 0.08 34.50 20.20 1.43 7.46 8.1 SKF SKr 168.40 -1.00 231.70 134.80 3.37 14.88 2541.4 BHP Bltn 1170 2.00 2102.53 1117.5 6.68 9.75 8082.7 SEGRO 441.60 -3.80 454.80 330.90 3.42 4.13 1468.2 Latchways 740.00 5.00 1040 705.01 5.35 19.54 4.7
AvonRub 805.00 -1.00 900.00 610.73 0.70 18.27 14.9 El Oro 55.00 - 78.00 40.00 6.73 -4.71 19.2 Spirax-S 3312 50.00 3767.56 2698.37 1.89 24.19 76.2 BisichMg♦ 90.50 - 104.00 60.15 3.31 8.85 1.1 Shaftbry 922.50 -3.50 947.00 648.00 1.42 5.12 225.9 Lavendon 180.75 0.50 217.00 155.50 2.10 22.11 10.2
BAE Sys 473.10 3.50 549.00 414.92 4.33 21.37 9652.2 Hargr Lans 1182 8.00 1299 827.00 1.89 34.71 626.1 Tex 110.50 -3.00 117.00 84.00 4.07 8.10 2.7 EVRAZ 99.40 -2.10 209.90 93.30 - -1.99 3473.5 Town Ctr 305.00 3.00 324.65 230.00 3.42 5.71 7.2 MngCnslt 16.00 -0.38 27.00 13.25 5.16 -80.81 47.5
Chemring 235.00 3.50 248.00 196.00 1.74 -26.88 109.2 HBM Hlth SFr 99.20 -2.80 113.50 80.50 - - 12.4 Trifast 123.25 -1.25 134.00 88.63 1.30 17.44 7.8 Fresnillo 645.00 -1.00 1037 616.50 - 68.34 1067.7 Wkspace♦ 961.00 -4.50 983.50 592.00 1.14 4.23 142.9 MearsGp 392.25 - 497.00 354.75 2.33 15.91 18.8
Cobham 258.30 3.10 349.10 250.50 3.85 99.96 2689.1 HenderGp 271.80 6.50 303.30 180.10 3.31 18.96 3422.8 Vitec 654.00 -4.75 670.85 539.00 3.58 22.27 0.8 GemDmnd 126.00 -7.50 223.00 123.00 - 8.23 479.2 Real Estate Inv & Services MenziesJ 510.50 -0.50 680.00 306.25 5.27 22.55 49.6
Meggitt 455.80 0.30 593.50 421.70 2.86 20.99 1597.3 ICAP 513.00 1.00 573.00 338.70 4.29 40.24 460.7 Weir 1555 24.00 2786 1454 2.83 - 1405.7 Harmony R 12.14 -0.41 38.50 11.85 - -3.87 2304.2 Cap&Count 458.20 4.40 462.30 313.00 0.33 6.73 1380.8 MichaelPge 533.50 -1.00 568.00 358.70 2.00 27.90 212.1
RollsRoyceX 749.50 19.00 1061 717.50 2.99 -192.18 8721.0 Indvardn SKr 162.80 1.20 183.50 111.40 3.97 7.18 266.2 Hochschild 78.25 -2.75 177.00 60.97 - -6.50 267.9 Cardiff 1045 - 1085.5 950.00 1.24 4.53 1.0 MITIE♦ 322.40 0.30 329.90 263.90 3.50 34.06 447.6
ICG 572.00 -3.00 712.83 421.98 4.34 9.74 874.7
Industrial General Kenmr 3.60 0.03 16.00 2.18 - -1.55 485.3 PayPoint 991.00 -9.00 1134 779.82 3.66 17.28 32.3
Senior 291.10 11.90 361.70 248.90 1.93 19.58 1159.9 CLS 1900 - 2023 1270 - 4.23 4.5
IPF 397.00 9.00 584.50 348.00 3.02 11.54 698.9 BritPoly 710.00 - 730.00 565.00 2.11 12.34 3.7 Lonmin 53.80 -1.80 242.90 52.65 - -7.06 2878.7 PremFarn 134.20 -5.80 204.60 131.48 7.75 10.43 2556.7
UltraElc 1740 13.00 1914 1646 2.45 58.58 119.9 Daejan 6445 -15.00 6614.2 4675 1.53 5.63 1.6
Investec♦ 582.50 -17.50 649.50 477.20 3.35 21.60 1376.5 CoatsGrp 27.00 - 35.45 19.00 - 40.91 270.3 Petra 149.30 1.30 210.80 138.87 - 18.06 826.1 Rentokil 144.00 -1.90 154.20 110.90 1.80 20.17 3419.1
DvlptSec♦ 263.25 - 293.00 179.00 2.13 9.84 73.2
Automobiles & Parts Jupiter 465.00 12.50 472.70 313.70 2.84 13.91 1773.7 JardnMt $X 54.98 -0.02 67.88 52.42 2.57 11.91 119.3 Petropvlsk 5.99 -0.01 45.00 4.21 - -0.10 1158.7 Grainger 237.90 -0.80 240.70 167.80 1.05 27.59 604.6 Ricardo 900.50 4.00 967.50 597.70 1.69 24.51 6.1
FordMtr $X♦ 15.10 -0.11 17.87 13.26 3.62 16.47 34935.6 Liontrust 374.75 14.75 393.50 208.00 1.07 27.59 28.4 Jard Str $X 30.18 -0.14 37.84 29.87 0.86 9.97 51.8 PolymtIntl 451.40 3.50 634.00 315.18 2.29 -13.40 258.9 RbrtWlts 447.00 7.50 447.50 270.00 1.34 26.06 94.8
Macfrlne 43.75 1.00 46.00 34.00 3.66 11.56 94.0 HelclBar♦ 425.00 1.50 435.00 320.00 1.61 6.99 49.2
GKN 315.90 -5.70 389.00 281.10 2.66 35.16 9499.7 Man 160.50 -1.90 217.80 108.30 3.97 10.87 8846.4 RndgldRs 3813 - 5752.1 3638 1.04 25.12 590.4 HK Land $ 7.64 -0.01 8.80 6.47 2.47 14.17 3243.8 RPS 215.00 -5.25 295.00 181.50 3.67 14.22 500.9
NB GFRIF♦ 97.65 -0.10 99.75 93.90 3.95 24.44 1009.5 REXAM 549.50 1.00 592.50 424.60 3.45 15.31 2385.0 RioTintoX 2456.5 2.50 3530.5 2373 5.33 10.91 4402.1 Shanks♦ 101.00 1.25 113.50 84.50 3.42 -21.96 122.7
Banks RPC 667.00 -13.50 696.24 488.20 2.13 32.07 603.5 Lon&Assc 37.00 - 50.00 34.53 0.34 -4.33 12.0
Paragon 405.60 -0.60 461.50 313.70 2.22 12.48 561.7 Troy Res A$ 0.31 - 0.93 0.30 - -0.63 295.5 MacauPrp 200.00 -1.13 260.00 196.25 - 10.52 19.1 SIG 205.30 -0.80 212.20 143.40 1.86 36.78 914.3
ANZ A$X 32.47 0.22 37.25 30.47 8.65 11.25 4445.9 Smith DS 393.10 -4.20 410.35 231.82 2.67 23.97 1539.8
Providnt 2915 -51.00 3268 1942 3.36 21.75 286.0 VedantaRs♦ 385.00 -13.50 1105.22 353.21 10.83 -0.87 1197.3 Mntview♦ 12025 25.00 12900 7481.95 2.08 14.74 0.3 SpeedyHr♦ 51.75 -0.25 80.50 45.75 1.26 1326.92 123.9
BcoSant 434.50 -21.75 758.00 416.37 9.42 12.32 7395.1 Smiths 1135 12.00 1363 1006 3.55 20.14 1005.7
RathbnBr 2277 - 2348 1774 2.28 29.33 27.3 Q'tainEst 131.25 0.25 133.50 75.00 - 18.23 5662.0 St Ives 173.25 -3.00 223.77 156.68 4.13 49.74 42.7
BankAm $X 18.13 -0.03 18.48 14.84 1.10 19.47 65257.5
Record 39.00 0.25 41.00 28.38 3.85 14.73 55.1 SmurfKap € 27.44 0.04 30.31 14.92 2.04 24.02 376.7 Oil & Gas TribalGrp 161.50 2.00 188.00 138.72 1.05 -19.60 46.3
BnkGeorgia 1997 -22.00 2604 1663 2.98 9.71 72.8 Vesuvius 420.70 5.70 530.00 386.60 3.62 11.46 159.4 Afren# 1.79 -0.05 150.00 1.28 - -0.05 9090.3 RavenRuss 52.75 0.13 75.75 37.25 - -6.67 198.7
S&U 2461 1.00 2520 1700 2.32 15.95 0.5 RavenR Prf 132.75 0.25 146.00 101.50 9.04 - 39.2 Vp♦ 770.00 - 816.00 539.00 2.00 16.38 11.3
BankIre € 0.38 0.00 0.39 0.07 - 17.06 21512.3 Aminex 1.95 0.03 3.17 0.75 - -8.94 7949.6
Schroder 3110 18.00 3441 2086 2.12 21.03 610.8 Industrial Transportation RavenR Wrt 31.50 - 49.64 25.00 - - 27.4 Watermn 73.75 -0.25 76.00 50.00 1.36 56.30 32.6
BkNvaS C$X 63.84 0.48 74.93 60.52 4.52 10.28 2103.0 BGX 1079.5 39.50 1420 780.55 1.88 -28.46 19394.0
..N/V 2432 30.00 2629 1692 2.71 16.44 31.3 BBA Aviat 295.20 -1.00 362.10 292.40 3.39 13.51 578.4 Safestre♦ 301.75 3.00 307.75 185.25 2.47 6.20 521.5 Wolseley 4210 -8.00 4398 2966 1.96 38.01 561.1
BarclaysX 287.05 2.45 288.85 204.05 2.26 141.61 42573.7 BPX 401.00 2.40 499.25 364.40 6.44 -18.21 35395.7
SVG Cap 479.10 -3.60 535.00 226.00 - 11.96 149.0 Braemar♦ 490.00 9.50 533.50 390.00 5.31 53.43 17.4 Savills 966.00 -3.00 991.46 567.52 1.11 21.33 144.9
CanImp C$X 92.55 0.63 107.37 88.04 4.83 9.65 923.4
TullettPre 391.70 10.00 408.90 237.80 4.30 8.37 284.5 Cadogan 10.75 -0.13 13.25 8.25 - -0.65 70.0 Tech - Hardware
HSBCX 577.10 0.60 674.57 544.30 5.94 12.10 22112.8 Clarkson 2690 -39.00 2855 1835 2.16 29.97 22.0 CairnEng 163.60 -0.30 210.00 141.00 - -3.84 1689.5 SchroderRE 60.25 -0.25 63.00 51.50 4.12 5.34 307.5 ARM Hldgs 1011 21.00 1233 778.50 0.69 47.99 5370.1
Tungsten 66.75 0.25 409.75 52.49 - -2.53 216.0 Eurotunnl € 13.01 0.11 14.57 8.62 1.40 63.29 768.6 Smart(J) 98.00 - 112.40 86.00 3.02 40.71 5.5
LlydsBkgX 86.02 0.42 89.35 70.72 0.87 -2.24 163613.6
WlkrCrip♦ 52.00 -1.00 55.00 37.50 3.06 76.13 14.3 Cape 234.00 0.50 327.25 177.00 5.98 12.58 38.6 CSR 898.00 0.50 898.00 506.00 1.02 25.39 630.6
RylBkC C$X♦ 75.75 0.10 83.87 71.74 4.30 10.70 1893.9 Fisher J 1093 -32.00 1445 1003 1.89 13.80 29.6 DragnOil 722.00 4.00 736.50 447.50 3.36 8.51 266.0 StModwen 476.00 -2.90 492.10 324.59 0.97 4.49 236.9 Laird 400.10 50.30 413.30 265.90 3.04 21.51 1522.8
RBSX 342.40 -10.80 414.00 326.10 - -31.55 38194.6 Food & Beverages Flybe Grp 93.75 0.25 135.75 52.00 - -8.52 474.2 Endeav Int' $ - - 0.60 0.02 - - - UNITE Gp 633.50 -3.00 640.00 395.60 0.85 12.12 267.0 Pace 360.10 - 520.80 352.60 1.21 10.31 463.1
StandChX 983.10 0.90 1261.04 867.50 5.62 14.51 3785.1 AngloEst 595.00 -15.00 690.00 539.00 0.54 11.97 3.9 Goldenpt 138.00 -4.50 370.00 113.80 - -0.74 4.9 EnQuest 37.00 - 136.00 21.50 - -2.53 2085.8 Urban&C 253.00 2.00 278.00 215.00 0.59 8.24 25.8 SpirentCM 93.75 - 98.87 65.95 2.52 43.69 200.2
..7.375%Pf 118.00 0.50 128.00 108.50 6.25 - 30.6 AscBrFdX 3159 8.00 3293 2407 1.08 44.27 480.7 OceanWil♦ 835.00 -5.00 1208 830.10 4.60 19.86 9.1 Exillon 120.75 1.63 175.57 95.00 - 5.84 4.4
RoyalMail♦ 492.80 0.40 532.50 388.00 4.06 15.16 1190.9
Retailers Tech - Software & Services
..8.25%Pf 126.75 - 141.00 119.50 6.51 - 31.1 Barr(AG) 576.00 -3.50 699.36 548.00 1.96 22.27 27.4 ExxonMb $X 83.01 -0.13 104.15 78.97 3.50 11.84 11135.3 AA 364.90 -0.10 434.50 238.25 - -158.17 991.1
TntoDom C$X♦ 52.67 0.03 58.20 49.67 3.98 11.79 3346.3 Britvic 687.00 -7.50 788.00 600.72 3.04 17.07 505.3 UK Mail♦ 505.50 -14.50 606.93 380.00 4.25 17.49 6.0 GenelEgy 383.50 1.00 1025 367.50 - -5.29 1196.6 Anite 125.75 0.25 129.75 69.25 1.51 39.36 495.1
AO World 125.00 - 336.00 119.00 - -209.03 431.0 AVEVA♦ 2235 21.00 2344 1183.9 1.23 34.43 114.5
VirginMoney 419.70 8.20 472.90 278.00 - 35.02 297.8 C&C € 3.53 -0.02 4.45 3.16 2.99 -13.92 18.4 Insurance GeoPark $ 3.90 - 11.00 3.59 - -6.54 147.6 AshleyL 28.25 - 36.00 24.50 7.08 11.23 903.9
Westpc A$X 34.74 0.34 40.07 31.00 8.27 13.49 4770.0 CarrsGroup 165.00 -1.50 178.50 136.00 2.06 12.67 11.9 GrnDnGas 302.38 2.63 548.50 293.00 - -20.55 0.0 Computcnt 753.50 -10.00 802.40 651.67 2.74 16.62 326.2
Admiral 1468 -23.00 1640 1175.33 3.28 14.28 635.7 Brown N♦ 317.90 -4.00 403.03 247.19 4.48 15.02 219.5 DRS Data 12.00 - 18.50 11.25 3.33 -2.45 5.0
Coca-Cola H 1307 2.00 1497 1051 2.10 20.89 327.5 GulfKeyst 25.75 -4.00 89.75 24.77 - -1.41 13737.7 Caffyns 587.50 - 665.00 480.00 3.19 1.78 1.5
Basic Resource (Ex Mining) Amlin 508.50 - 533.08 418.20 5.17 10.91 1480.5 Elecdata♦ 67.50 - 79.00 64.00 2.96 22.46 1.4
Cranswk♦ 1620 - 1650 1181.6 2.01 19.33 22.8 Aviva 518.50 1.00 578.68 458.20 2.94 10.87 6909.6 HellenPet € 4.68 - 6.04 3.40 - -5.42 0.0 Card Factor 339.90 8.60 375.00 200.00 - 32.00 235.3
Ferrexpo 58.50 - 142.10 47.60 7.60 4.41 699.6 MicroFoc 1379 - 1442 808.00 2.20 25.56 455.3
Dairy Cr♦ 572.00 1.50 574.00 367.39 3.74 38.39 227.4 Beazley 333.50 -8.00 345.90 235.00 2.82 11.60 2171.5 Hunting 520.50 11.00 918.83 383.90 3.66 18.12 595.9 Dairy Fm $ 8.49 -0.04 10.77 8.38 2.69 24.78 16.0
IntFerMet 1.95 -0.32 8.35 1.82 - -1.19 2759.8 NCC Grp 234.50 1.50 237.75 169.80 1.49 27.96 224.9
Devro 307.00 -1.25 328.00 230.00 2.87 117.13 39.1 Chesnar 339.50 1.25 364.75 287.00 5.32 15.38 72.8 ImpOil C$X 48.53 1.87 57.96 44.08 1.16 11.70 978.9 Debenhm 87.00 0.35 96.80 56.85 3.91 11.83 1257.0
Mondi 1529 -14.00 1552 919.00 2.02 20.28 1402.1
Glanbia € 18.63 -0.31 19.59 10.75 0.62 34.06 17.0 JKX 16.25 0.75 51.13 10.23 - -0.43 46.4 RM 174.75 3.75 175.00 120.00 2.29 11.00 2.9
Vale BRLX 17.45 -0.90 32.95 16.41 16.51 -5.09 9972.1 DirectLine 364.60 -3.10 379.20 283.96 3.83 14.04 3690.1 Dignity 2459 23.00 2491 1314 0.82 -28.26 107.4 Sage 515.00 0.50 584.00 346.70 2.35 28.19 2069.6
Grncore♦ 312.10 -6.60 359.40 228.50 1.75 21.08 657.7 Eccles prf 130.25 0.50 146.00 122.00 6.62 - 85.7 Lamprell 151.50 1.75 178.00 93.50 - 8.00 359.7 DixonsCar 448.90 -6.60 490.80 319.20 1.17 52.81 2223.9 SDL 400.00 - 472.00 306.00 - 49.32 37.9
Chemicals HiltonFd 448.00 1.00 500.00 342.25 2.88 17.94 0.2 Hansard 111.50 4.00 113.50 80.00 7.53 18.46 81.3 Nostrum 524.50 -10.50 825.00 370.00 4.50 16.49 34.9 Dunelm 891.00 -5.50 970.00 767.00 2.24 18.97 48.6
Kerry € 67.75 0.35 70.70 49.30 0.90 22.40 56.7 OphirEgy 114.90 4.50 256.40 103.50 - 18.87 2525.0 Telecity 1093 5.00 1250 815.63 1.24 86.84 1075.8
Alent 475.50 -0.40 493.96 294.56 1.92 28.00 180.3 Hiscox 919.50 0.50 934.50 615.50 2.56 11.29 259.3 Findel 200.25 -1.75 265.44 188.41 - -27.81 13.4
Nestle SFrX 72.90 - 77.00 64.15 2.88 16.50 3960.0 Petrofac 872.00 4.50 1203 594.00 4.85 38.98 1863.5 TriadGp 27.00 - 28.00 7.00 - 11.62 1.0
Bayer €X 133.75 -1.25 146.45 94.22 1.70 31.21 1909.9 JardineL 1036 -2.00 1112 815.00 2.79 20.25 40.9 Halfords 532.50 1.00 559.00 417.10 2.74 15.98 289.9
Carclo 143.13 0.88 169.75 80.00 1.85 -4.31 7.4 PremFds 39.50 - 47.79 26.13 - -1.55 479.8 Lancashire 640.00 -4.00 703.45 506.00 1.38 9.17 1014.2 Lukoil RUBX 2441 10.10 3297.7 1911.5 2.77 8.17 647.4 Inchcape 802.00 49.50 906.65 589.50 2.24 20.57 1760.2 Telecommunications
Croda 2988 -9.00 3046 1965 2.19 23.26 247.7 REA 310.50 6.50 473.00 292.00 2.61 12.00 0.0 Leg&Gen 260.10 1.20 296.02 209.20 3.77 15.73 11630.2 PremOil 136.40 1.00 354.00 119.60 3.96 -5.28 3241.1 JDSportsF♦ 746.50 19.00 746.50 375.10 0.91 21.23 185.0 BTX 467.95 -5.55 481.75 351.90 2.44 17.95 24641.7
Elemntis 255.20 2.10 324.10 225.50 2.07 11.10 977.4 SABMillX 3390.5 7.50 3857 3105 2.09 24.73 2863.0 NovaeGp 722.50 -3.50 759.50 511.50 3.20 9.24 28.7 RylDShlAX 1839 74.50 2475.5 1725.5 7.17 11.69 9144.3 Lookers 159.25 1.25 172.00 117.50 1.68 13.55 664.7 Colt Grp 187.50 0.40 192.91 113.10 - -76.69 514.0
Syngent SFrX 396.90 3.00 435.20 273.20 2.77 23.23 202.3 StckSpirit 191.50 0.25 316.00 176.75 0.51 14.02 66.0 Old Mut 212.80 1.50 241.60 163.80 3.97 17.02 7953.3 ..B 1861 84.00 2599 1745.82 6.90 11.83 9076.1 Marks&Sp 533.00 2.00 600.00 380.80 3.23 18.04 3362.6 Inmarsat 885.00 -15.00 1041.24 653.00 3.62 19.66 729.4
Synthomer 314.20 1.50 359.50 176.64 2.10 23.75 2445.1 Tate&Lyl♦ 544.00 -0.50 744.50 501.18 5.15 83.69 2921.9 PermTSB 0.06 - 0.10 0.05 - -0.08 0.0 Schlmbrg $X 83.52 -0.37 112.00 75.60 2.14 24.97 4610.2 MossBros 96.00 0.50 112.00 77.50 6.67 25.25 23.9 KCOM Gp♦ 94.50 0.50 102.41 78.50 5.33 38.71 202.4
Victrex 1919 29.00 2202.55 1542 2.35 19.39 200.4 TongtHu R 121.59 1.59 174.93 116.85 3.45 12.72 114.4 PhoenixGrp 849.50 4.00 935.00 690.00 6.29 8.80 230.0 SEPLAT 98.00 1.00 248.00 94.25 9.59 6.57 1.4 Next♦■ 7885 75.00 7900 6130 1.81 19.25 506.8 TalkTalk♦ 309.30 -17.10 415.10 261.00 4.07 40.25 2601.6
Unilever 2889 20.00 3087 2397 2.85 24.07 2582.5 PrudntlX 1520 18.50 1761.5 1287 2.30 17.50 4268.5 Soco Int 159.25 8.25 450.89 134.00 - 58.50 612.5 Ocado 387.60 -11.20 478.50 216.80 - 339.70 2482.8 TelePlus♦ 1145 18.00 1527.12 725.50 3.32 28.49 120.2
Construction & Materials ..NV € 41.07 0.58 42.98 28.81 2.85 23.95 10.4 TrnCan C$X♦ 50.37 1.11 63.86 48.46 4.21 19.25 896.5 Pendragn 38.50 0.75 41.50 28.25 1.56 11.25 2417.7
RSA Ins 517.00 -1.00 525.00 391.70 - -35.90 4129.8
Alumasc 155.50 -2.00 166.73 110.00 3.22 13.44 24.6
SagicFin 64.00 -2.00 68.00 55.00 4.21 5.40 1.0 Tullow 246.60 11.10 766.07 220.80 1.71 -2.28 9742.2 Photo-Me 150.25 -1.50 155.68 107.85 2.86 20.23 336.1 Tobacco
BalfourB 230.70 -1.80 262.40 145.59 6.11 -5.26 1233.7 Health Care Equip & Services BrAmTobX 3740 59.50 3894 3303 3.96 17.36 4317.6
Bioquell 138.00 -0.50 155.50 80.00 2.39 -57.69 5.5 StJmsPl 971.50 -1.50 1008 637.00 2.40 28.91 1619.6 Pharmaceuticals & Biotech Saga 205.00 -4.50 225.10 143.75 - 24.12 928.8
..CvPf 119.50 - 124.50 101.00 8.10 - 122.0 SignetJwl♦ 7788 14.00 9499 5950 0.64 23.78 1.5 ImpTobX 3349 -16.00 3413 2474 3.83 16.77 2168.4
ConstMed 932.00 8.00 1045 650.00 1.94 61.72 53.8 Stan Life 451.90 5.90 505.68 354.96 4.38 23.55 3481.1 BTG 651.50 -8.50 835.87 578.50 - 72.38 510.0
Boot(H) 235.25 -0.75 245.00 170.00 2.23 14.74 20.9 SuperGroup 1430 -5.00 1445.17 750.00 - 29.74 94.2
ClarkeT 78.50 -1.00 84.01 37.50 3.31 -54.18 16.0 GNStre kr 138.70 -0.70 158.50 122.50 0.67 26.98 437.8 Media CathayIn 24.38 -0.63 36.50 16.00 - -110.80 8.7 Travel & Leisure
UDGHlthC 494.80 3.70 551.50 315.20 1.48 13.99 388.9 Dechra 972.50 -0.50 1068 680.50 1.58 38.63 34.0 TescoX 214.65 1.65 269.56 155.40 5.26 -3.06 16011.0 888 Hldg 169.50 -2.75 185.75 114.75 3.84 16.57 224.3
Costain 332.50 -2.00 348.00 250.00 3.31 15.31 156.1 4imprint 1199 14.00 1200 651.00 1.71 27.50 21.9 Thorntns 145.00 -0.13 147.00 62.00 - 22.18 53.8
CRH 1879 -9.00 2478.5 1220 2.58 6.14 1280.6 Blmsbury 164.13 0.63 185.00 140.50 3.57 13.79 11.1 Genus 1440 -13.00 1535 1001 1.23 27.58 85.3 AirPrtnr 416.75 5.38 470.31 245.00 4.96 15.15 24.1
House, Leisure & Pers Goods GlaxoSmhX 1389 14.50 1645 1296.5 5.76 6.99 15713.4 VertuMotor 64.00 0.50 67.00 50.50 1.33 13.40 244.7 bwin.party 113.70 1.20 128.00 70.40 3.15 -13.01 4589.0
GalfrdT 1739 -19.00 1785 1085 3.05 17.72 160.8 Centaur 78.00 -3.25 84.00 55.75 3.33 11.55 116.4
AGARmst 183.75 0.50 184.00 78.44 - 1276.04 238.9 HikmaPhm 2405 -2.00 2617 1580 0.54 26.98 1311.9 Cineworld 512.50 -3.50 523.00 298.40 1.99 23.39 423.0
Keller 1058 -5.00 1105 742.00 2.31 -251.13 47.4
BarrttDev 625.50 3.00 654.50 323.50 1.65 16.56 2645.7 ChimeCm 345.25 70.75 364.25 239.00 2.22 35.96 1805.1 Support Services
KierGp 1424 -10.00 1790 1260 4.04 36.84 86.4 Creston 146.00 3.00 146.15 102.62 2.77 11.73 70.8 Oxfd Bio 9.00 -0.58 13.38 2.85 - -20.98 5361.2 Acal♦ 300.75 3.00 334.75 180.00 2.39 62.66 1.3 CompassX 1031 3.00 1223.36 924.41 2.62 20.02 5333.1
Bellway 2361 18.00 2462 1435 2.20 12.20 189.3 RichterG $ 15.86 0.27 17.28 12.20 1.23 25.60 0.0 EntInns 113.60 -2.10 139.60 96.85 - 19.02 329.7
Kingsp € 22.75 0.63 23.11 11.03 0.72 33.44 63.3 DlyMailA 798.50 -3.00 989.50 699.00 2.55 10.86 822.4 Aggreko 1215 -17.00 1804 1150 2.26 14.75 1110.2
Berkeley 3298 25.00 3516 2033 5.76 12.60 384.8 ShireX 5590 -110.00 5755 3448.28 0.27 14.28 1769.6 FirstGrp 115.50 0.60 129.90 88.65 - 18.55 1049.7
LowBonr 70.00 -0.75 89.72 44.25 3.86 18.02 33.9 HaynesPb 124.00 - 192.00 110.00 6.05 14.32 0.8 APR Engy 113.00 -3.25 603.50 92.25 9.37 -0.22 119.3
BovisHme 1121 10.00 1177 717.43 1.92 14.34 209.0 VecturGp 178.50 1.50 183.75 113.25 - 198.55 440.6 Fuller A 1165 4.00 1205 890.00 1.35 23.10 365.6
Marshlls 320.50 0.50 331.00 160.00 1.72 32.41 56.0 ITE Grp♦ 184.75 0.75 211.90 125.00 4.01 14.76 50.5 AshtdGp 964.00 -1.50 1231 849.50 1.27 16.03 2725.8
CrestNic 531.00 9.50 587.92 291.98 2.69 11.88 585.5 Go-Ahead 2541 -2.00 2745 2118.84 3.33 16.40 35.5
MorgSdl 805.00 -8.75 865.00 570.00 3.35 19.35 7.7 ITV 271.60 -4.60 279.27 192.10 1.73 20.86 10003.2 Real Estate AtknsWS♦ 1553 5.00 1572 1225 2.21 18.19 152.9
GamesWk 555.00 -4.25 635.00 487.25 9.37 14.50 0.1 GreeneKg 858.00 -7.00 891.00 712.00 3.31 20.46 597.2
Norcros 20.00 -0.50 22.76 14.69 2.63 15.38 250.1 JohnstnP 113.88 -0.50 7830 100.00 - -258.81 19.7 Babcock♦ 985.50 -53.50 1207 924.50 2.22 18.72 3476.0
Gleeson 445.00 - 465.00 322.35 1.35 13.91 4.9 Harworth Gr 12.25 -0.25 14.00 5.35 - 21.42 41.8 IrishCtl € 4.31 0.04 4.45 2.58 2.61 12.92 35.0
StGobn € 42.69 0.71 44.00 29.51 1.47 28.28 2464.9 News Corp A $ 14.80 -0.03 18.03 14.04 - 33.54 2129.4 Berendsen 1000.00 -6.00 1161 895.50 2.87 19.07 178.5
Headlam 474.50 -0.50 512.00 390.00 3.34 16.67 1.2 REITs Ladbrokes 111.50 -2.60 147.00 101.02 7.98 25.12 6355.1
Tyman 309.00 -5.00 342.00 228.25 2.59 44.82 762.3 NewsCpB $ 14.29 -0.05 17.50 13.64 - 32.38 901.2 Brammer 322.00 5.25 455.00 265.00 3.32 44.94 585.9
McBride 118.00 -2.00 120.25 74.00 - -12.65 49.5 Assura 55.00 1.00 62.25 43.08 3.36 11.70 356.1 MandarO $ 1.61 - 1.85 1.47 4.11 16.70 243.6
Persimn Pearson 1193 -3.00 1517.42 1092 4.27 51.10 3339.0 Bunzl 1820 16.00 1969 1517 1.84 28.55 647.4
Electronic & Electrical Equip 1986 12.00 2072.46 1187 - 16.32 865.6 BigYellw 694.00 -2.00 710.00 479.40 2.71 9.66 72.9 Capita 1279 8.00 1336 1000.5 2.28 34.67 1595.2 Marstons 155.00 0.40 174.40 134.50 4.32 -32.82 1300.5
Philips €X 25.32 0.32 28.00 20.69 - 100.99 3888.6 Quarto 210.00 - 214.99 136.66 3.99 7.24 5.0
Dialight 551.00 57.00 960.00 398.00 2.72 29.48 439.1 BritLand♦ 829.50 -6.00 891.50 649.00 3.32 5.24 2023.0 Carillion 345.90 0.30 371.40 294.03 5.09 27.21 794.2 Natl Exp 297.80 -2.30 324.80 213.40 3.46 18.45 529.3
PZCusns 345.00 2.10 392.10 289.76 2.25 16.15 381.2 RELX NV € 14.36 0.18 24.17 13.85 - - 3278.3
e2v Tech♦ 227.00 -0.25 268.00 145.44 1.98 20.95 24.6 Cap&Reg 61.50 -0.50 63.00 44.94 1.22 4.73 445.5 Comnsis 48.25 -1.75 70.00 44.65 4.15 -6.62 818.3 PPHE Htl 589.00 1.00 605.00 392.50 2.77 7.61 16.5
ReckittBX 6104 11.00 6167 4895 2.28 25.94 1181.7 RELX PLCX 1097 -4.00 1199 921.50 2.27 103.23 3398.4
Halma♦ 751.00 8.00 785.50 552.50 1.53 27.33 494.2 Countrywd 531.00 -22.00 608.00 404.30 2.82 26.45 1137.5 ConnectGp 149.75 1.75 191.45 128.02 6.27 11.74 4.6 Rank Gp 239.00 - 246.30 151.90 1.88 19.78 42.4
Redrow 457.20 - 473.20 224.00 0.66 11.92 407.4 STV Grp 452.50 -2.50 460.00 322.00 0.88 12.04 1.3
MorganAd 346.20 1.20 365.50 258.10 3.15 59.90 1454.8 DrwntLdn 3629 -21.00 3714 2535 1.03 5.07 162.9 DCC 5050 -5.00 5320 3050 1.57 33.20 186.5 Restaurt 665.00 3.00 748.70 596.00 2.23 22.23 327.4
TaylorWm 190.40 5.00 197.90 104.60 0.82 14.99 24464.6 ThmReut C$X 53.08 2.34 53.18 39.45 3.24 16.85 1009.5
OxfordIn 915.00 2.00 1287 671.58 1.36 78.19 54.2 Gt Portld 828.00 -3.00 877.00 600.04 1.07 5.62 512.5 DeLaRue♦ 501.00 1.00 779.00 467.40 7.29 14.97 544.3 Sportech 66.50 -1.00 87.50 47.00 - -6.39 0.5
TedBaker 3208 49.00 3235.89 1651 1.11 39.59 20.5 UTV Med 154.75 -0.25 223.56 137.00 4.57 10.77 89.2
Renishaw 2091 -9.00 2672.9 1520 1.97 13.65 90.1 Green Reit € 1.54 -0.01 1.70 1.20 - - 13.7 Diploma 756.50 -15.50 916.50 627.00 2.25 23.10 92.5 Stagech 387.50 0.30 437.90 331.60 2.53 16.05 361.2
WPPX 1461 -5.00 1616 1091 2.41 18.14 3160.4
Spectris 1979 31.00 2420 1606 2.35 18.33 405.1 Industrial Engineering Hammersn 655.00 -5.50 708.00 537.00 3.11 7.56 1727.7 Elctrcmp 200.30 -5.50 263.10 197.20 5.87 12.56 1195.5 ThomasCook 125.90 -0.50 162.20 99.40 - -32.50 13215.4
TT Elect 147.50 -0.50 188.03 96.00 3.73 -22.35 56.1
Bodycote 682.50 32.50 797.59 542.50 2.11 21.84 354.7
Mining Hansteen 119.20 -0.60 128.95 98.70 4.11 7.03 359.6 EnergyAst 560.00 18.50 640.00 375.00 - 21.05 18.4 TUI 1071 - 1294.78 996.74 - 73.70 756.1
XP Power 1590 4.00 1695.92 1340 3.90 15.80 0.3 Acacia 244.80 4.20 318.90 191.70 1.09 24.49 516.1 HIBERNIA ♦ 1.30 - 1.34 1.03 - - 6529.7 Essentra 960.00 8.50 1069 624.50 1.70 32.69 358.9 Whitbrd 5145 - 5475 3767 1.40 25.37 321.1
Castings♦ 442.38 1.88 525.00 360.00 2.95 13.91 2.2
AngloAmer 805.70 -7.90 1653.5 764.90 6.77 -2.33 6885.0 Highcrft 1020 5.00 1050 795.00 3.53 18.69 0.7 Experian 1176 -4.00 1264 909.95 2.20 22.97 1827.8 Willim H 403.30 2.00 432.10 330.60 2.95 17.23 3067.1
Financial General Fenner♦ 164.00 -1.00 374.50 156.00 7.32 796.12 745.1
INTU 326.50 -6.20 376.50 305.50 4.20 17.07 2767.0
Goodwin 2522.5 22.50 3750 2120 1.68 10.11 0.1 AngloPacif♦ 81.75 0.50 192.00 74.75 12.48 -1.94 38.8 Grafton 697.00 -4.00 868.00 559.00 1.33 20.51 203.5
3i 545.00 -1.00 571.50 343.61 - 7.47 1484.6
AnGoldA R 79.00 0.20 193.86 75.81 - -24.30 2660.6 LandSecs 1283 -10.00 1363 988.50 2.46 4.21 1401.3 Utilities
AberAsM 363.30 -4.70 509.64 356.20 4.95 16.01 5676.6 Hill&Sm 689.25 3.25 720.00 503.50 2.38 19.89 3.7 HarvyNah 100.88 0.88 112.00 66.32 3.31 14.01 6.1 Centrica 266.60 -8.60 327.00 234.40 5.06 -26.82 27035.7
IMI 1078 10.00 1454.55 1052.23 3.35 15.71 1211.2 Antofagasta 580.50 -4.50 852.00 568.50 10.76 19.41 2158.3 LondonMtrc 160.80 - 173.20 132.30 4.35 6.30 500.1 Hays 164.90 -1.10 173.70 108.15 1.59 24.51 2851.1
Ashmore 263.40 -1.60 365.10 249.00 6.25 12.60 1129.8 McKaySec 265.00 2.50 270.00 215.00 3.25 7.47 44.4 DeeVally♦ 1405 - 1450 1135 4.45 18.65 1.1
MelroseInd 269.30 -8.10 314.78 242.70 3.09 42.14 6666.0 ..5%Pf 0.60 - 0.60 0.60833.33 - - Homesve♦ 428.50 -4.20 447.84 293.80 2.84 23.68 166.3
BrewDlph 313.00 1.90 361.00 236.80 3.16 47.57 428.5 MucklGp 497.50 7.38 510.00 421.00 4.07 5.79 30.9 Drax 288.90 3.50 741.00 246.00 4.12 6.76 2123.1
Renold 77.38 -0.38 86.00 49.00 - 31.38 107.9 AquarsPl 6.25 -0.05 25.25 5.53 - -2.66 1535.5 HowdenJny 478.10 -1.00 532.00 309.00 1.76 20.35 2469.1
Canaccord 355.00 - 729.00 300.00 3.00 -24.42 0.1 PrimyHth 405.75 -0.75 410.55 324.00 4.81 13.66 79.0 Natl GridX♦ 842.70 3.50 965.00 815.70 5.01 15.79 5712.0
Rotork 213.20 2.20 289.00 207.10 2.31 17.99 2984.5 AsiaResM# 36.75 - 72.00 3.61 - -1.55 - Intserve 644.50 6.50 878.50 487.20 3.44 20.34 162.2
CtyLonInv 350.50 -0.75 365.00 251.25 7.35 16.45 16.5 Redefine 51.50 -0.60 59.90 48.00 6.21 5.09 361.1 Pennon 807.00 2.50 925.00 745.30 3.82 25.09 760.0
Severfd 70.25 0.25 72.29 57.00 - 1463.54 23.7 Barrick C$ 9.16 -0.22 21.14 8.87 2.99 -2.65 2916.9 Intertek 2438 19.00 2888 2141 1.93 22.42 392.1
CloseBrs 1441 - 1857.39 1231 3.40 13.20 192.5 UtdUtils♦ 883.00 -0.50 1045 784.00 4.14 22.24 1623.7

AIM
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence PolarCap 433.50 -4.00 500.00 351.00 6.11 17.07 2.0 Insurance Egdon Res 10.63 - 25.93 6.24 - -6.81 27.9 LXB Retail 83.00 -0.75 149.00 81.00 - - 222.0 Tech - Hardware
Cohort 337.00 12.50 365.00 193.00 1.29 25.28 18.4 Share 30.00 - 41.68 29.00 2.07 319.15 46.8 Gable 19.50 -0.50 84.00 18.50 - -5.46 243.8 Enegi Oil 0.68 - 4.50 0.58 - -0.25 64.9 MirLand 51.00 -3.00 235.00 50.00 - -0.90 2.0 AminoTech 169.50 9.00 171.00 75.24 2.95 15.09 84.8
ShoreCap 412.50 - 431.50 400.00 2.18 19.85 0.7 Helios 192.50 - 200.00 120.00 0.78 15.74 1.8 EuropaOil 5.63 -0.13 10.75 4.65 - -7.99 420.8 NewRiver 330.00 -2.00 333.60 271.00 2.58 17.85 285.7 IQE 25.50 - 26.50 12.08 - 105.81 1161.4
Banks STM Group 44.50 -3.50 55.90 16.50 - 26.77 94.4 FalkldO&G 23.00 -1.50 45.00 16.75 - -59.13 357.9 Palace Cap♦ 365.00 - 405.00 295.00 2.33 4.55 93.7
BCB Hldgs 8.00 - 14.17 6.00 - -1.35 0.5 WH Ireland 117.50 1.00 130.00 79.00 1.70 45.21 15.0 Media FaroePet 83.25 2.00 117.44 58.00 - -3.68 856.6 PnthrSec♦ 337.50 5.00 354.00 295.00 3.56 12.93 1.3 Tech - Software & Services
STB 2915 10.00 3024 2245 2.33 21.18 1.1 Avesco 212.50 - 233.00 95.00 2.82 14.81 29.7 GETECH 48.00 1.00 71.70 32.00 4.58 7.27 37.6 PSPI 29.50 - 30.50 21.00 - -5.46 2.4 Blinkx 26.00 0.25 45.00 23.25 - -7.44 1037.2
Food & Beverages Cello Gp 102.50 2.00 106.70 81.00 2.35 38.93 89.8 Infrastrata 3.63 - 9.25 2.75 - -3.16 28.1 SiriusRE € 0.46 - 0.51 0.28 0.73 6.69 46.6 BondInt♦ 126.50 - 148.25 83.00 1.74 24.49 5.8
Basic Resource (Ex Mining) FinsbryFd 97.00 -0.50 100.00 56.00 1.03 13.00 144.1 M&Csaatc 310.25 4.25 395.00 235.00 1.82 -1309.07 23.9 Brady 103.50 - 110.13 64.00 1.64 185.48 54.1
Iofina 21.13 0.38 65.75 20.00 - -6.31 339.1 SumGermny €♦ 0.94 - 0.99 0.50 2.09 3.56 5.6
CropperJ♦ 515.00 5.00 527.67 355.00 1.53 25.60 96.8 Nichols♦ 1380 -40.00 1448.75 834.56 1.62 23.90 17.0 MissionMk 46.50 -0.25 51.25 37.00 2.15 9.19 2.1 Datatec 330.00 -5.00 362.95 261.25 3.33 13.82 6.2
Ithaca Engy 38.75 - 138.00 26.25 - -2.83 213.2 TaliesinPr 2322.5 2.50 2545 1750 - 9.51 0.2
PureCircle 405.00 - 635.00 352.24 - 315.42 4.1 Next15Cm♦ 191.00 - 198.00 110.04 1.45 123.54 4.3 DDD 3.00 - 6.25 1.25 - -3.12 59.3
Chemicals KBC Adv 120.00 - 126.00 77.00 0.83 21.68 86.6 Winkworth 165.00 -2.50 180.00 115.00 3.58 13.99 5.7
RealGdFd 55.00 -0.50 59.40 23.00 - -6.88 6.3 YouGov 109.00 - 133.00 98.50 0.73 196.04 11.8 Max# 0.16 - 1.62 0.08 - -0.08 634.1 Eckoh 38.25 - 48.50 33.00 0.82 45.21 36.4
Scapa♦ 207.75 -2.00 225.25 120.00 0.48 33.48 78.4 Retailers
Wynnstay 555.00 -5.00 607.25 474.52 1.84 15.64 11.7 PetrelRes 3.00 - 8.80 2.50 - -1.30 55.0 EgSoltns 67.00 -3.00 84.00 52.00 - 19.02 13.7
Construction & Materials Mining ASOS 3358 -29.00 4259 1742 - 77.20 796.5 Iomart 247.50 2.38 288.21 159.93 0.71 30.03 45.9
Health Care Equip & Services Petroceltic 68.25 4.25 224.00 63.00 - -0.74 98.2
Abbey 1012.5 - 1042.5 800.00 0.85 10.44 1.4 AMC 17.75 -0.25 44.58 2.50 - -87.87 3038.4 Koovs 72.50 - 171.00 60.00 - - 4.0 K3BusTc 271.50 - 273.00 205.00 0.46 30.13 3.0
Advnc Med 152.00 0.50 161.00 109.00 0.41 24.99 76.0 PetroNeft 4.45 - 6.65 3.60 - -5.48 75.6
AccsysTch 67.63 0.13 81.50 0.92 - -6.66 131.6 BeowMin 1.53 - 4.00 1.15 - -1.66 1492.6 Majestic 425.00 -6.25 453.50 280.00 3.76 20.87 221.6 Monitise 5.22 0.39 52.50 4.71 - -1.03 55668.5
AVO 6.88 - 16.90 3.40 - -9.17 1744.4 Plexus 232.75 -2.25 272.00 165.00 0.47 37.46 10.7
Aukett 7.13 - 9.50 5.76 2.95 9.35 73.3 BotswanaD 0.98 - 4.15 0.87 - -2.09 5.5 StanlGib♦ 244.00 -1.00 322.00 215.00 2.97 61.37 20.3 OMG 42.25 - 49.00 26.00 1.18 121.76 7.9
CareTech 258.50 12.00 263.25 190.00 3.09 12.19 73.9 PresidentEn 11.75 0.25 39.48 10.50 - 5.23 526.6
CentAsiaM 161.25 -0.25 198.00 135.16 6.51 4.56 11.3 Progility 3.25 - 11.49 3.00 - 3.44 185.0
Rockhop 60.50 - 95.50 51.00 - -11.83 683.9 Support Services
Electronic & Electrical Equip ImmunDiag♦ 290.00 - 530.00 266.00 2.93 36.29 22.0 Connema 1.25 0.13 3.81 0.25 - -2.17 528.8 Pub Tech 127.50 - 240.00 120.00 - -3.93 20.0
SphereMed 17.75 - 31.00 15.50 - -2.00 11.5 Sound Oil 15.00 - 26.73 8.75 - -10.97 1584.8 AndSyks 342.50 - 385.00 260.00 6.95 15.55 3.0
CeresPow 9.06 0.16 11.75 6.50 - -6.59 77.5 C'royG&NR 0.75 - 1.60 0.50 - -8.15 537.0 SciSys 63.00 - 96.75 38.50 2.38 8.68 3.7
Tristel 97.00 0.50 107.99 65.00 1.67 24.18 36.5 TowerRes 0.19 -0.01 1.18 0.09 - -0.18 5939.8 Augean 55.00 - 56.75 37.65 0.64 12.20 42.2
Densitrn 7.25 - 9.75 3.50 - 31.52 12.8 GrekaDrill 6.00 0.13 16.80 5.50 - -6.47 431.9 WANdisco 197.50 1.00 545.00 190.00 - -1.93 50.7
TrinityE 4.66 -0.60 93.57 1.75 - -0.05 412.8 Begbies 47.50 -0.50 55.00 38.50 4.77 18.57 97.7
ElektronT 6.75 - 8.70 3.25 - 67.50 24.2 House, Leisure & Pers Goods Herencia 0.16 -0.01 0.49 0.15 - -2.05 2302.1
UnJackOil 0.19 -0.02 48.00 0.19 - -4.75 5728.9
FlowGp 15.50 - 50.00 12.75 - -3.93 145.1 HighldGld 43.00 0.25 74.54 17.73 12.33 -8.74 392.7 Christie 145.00 - 162.00 114.00 1.21 16.13 18.5 Telecommunications
Airea 18.50 - 19.80 10.25 3.24 12.06 45.0 VictorOil 60.25 -0.75 89.05 1.21 - -1.74 91.1 Empres 82.50 -2.50 91.50 38.13 0.42 10.96 58.0
LPA 70.50 - 112.00 60.00 2.20 62.28 3.0 KarelianDd 1.03 - 2.08 0.80 - -14.64 388.4 AltNetwks 507.50 -2.50 545.00 415.00 2.86 27.40 8.5
Churchll 560.00 - 630.00 425.00 2.64 18.21 9.1 VolgaGas 59.50 - 127.00 55.00 4.04 5.85 7.7 Hargreaves 298.00 - 815.00 280.00 8.56 3.16 24.4
ThorpeFW 188.50 -1.00 192.00 120.00 1.72 20.86 31.4 KEFI Min 0.73 -0.03 1.80 0.67 - -1.79 622.9 AvantiCom 204.75 1.00 325.00 162.75 - -3.65 17.4
gamingrealm 27.63 0.63 41.00 20.00 - -5.91 54.6 Hydrogen 55.50 - 90.25 48.25 8.29 -132.14 5.9
Zytronic 303.50 -5.50 319.00 197.00 3.30 14.84 38.7
Mulberry 904.00 4.00 969.00 562.50 0.55 -385.17 0.6
OracleC 1.33 - 2.00 0.25 - -6.43 176.4 Pharmaceuticals & Biotech Peoples Op 126.50 - 147.60 121.50 - -55.85 0.1
RamblMtls 11.25 -0.25 27.40 9.00 - -39.20 50.0 Abcam 580.50 -7.50 593.00 355.25 1.34 33.04 301.5 Impellam 787.50 57.50 850.00 455.00 0.79 12.86 18.2
Financial General Portmern 907.50 -2.50 960.00 802.00 2.70 15.84 0.0
ShantaGold 5.88 - 13.30 5.40 - 4.85 317.8 ISG 172.00 - 356.00 140.00 5.49 -6.28 50.7 Travel & Leisure
SinclairW 9.38 -0.25 73.80 9.55 - -1.16 22.9 AllcePharm 54.63 0.38 55.00 31.65 1.72 17.30 46.0
Ambrian 7.50 - 12.50 5.25 - 22.73 3.2 SierraRut 23.88 0.13 46.50 17.00 - -20.42 15.0 JhnsnSrv 88.00 - 91.00 56.00 1.49 30.34 48.7 CastleStIn 34.88 - 40.78 17.00 8.60 - 52.7
TelfordHms 413.75 4.50 495.00 245.50 2.47 12.69 333.6 Epistem 212.50 -27.50 339.00 210.18 - -7.10 4.8
Arbuthnot 1612.5 - 1645.85 1000.00 1.67 22.14 6.8 Sirius Min 17.25 0.50 29.50 6.40 - -338.24 5360.6 JourneyGp 159.00 - 162.00 113.00 1.81 13.78 1.6 Celtic 75.25 - 79.00 72.81 - -19.58 2.1
WalkerGb♦ 235.50 - 244.85 151.05 0.82 28.46 22.9 e-Thera 38.50 - 49.40 24.25 - -13.08 4.0
Aurora 9.13 - 14.25 8.00 - - 1.5 SolGold 2.25 - 7.38 2.01 - -4.27 1909.2 LonSec 2145 -30.00 2450 1900 2.89 20.75 0.0 ..6%CvPf♦ 65.00 - 80.00 35.00 4.98 - 5.2
GW Phrms 602.00 -4.50 708.55 299.11 - -79.61 186.6
BP Marsh 144.50 - 156.75 116.75 1.90 8.56 0.7 Industrial Engineering Stratex 1.35 - 3.22 1.00 - -2.59 420.0 Matchtech 570.00 - 593.00 495.00 3.51 17.78 0.7 ..Cv Pf 135.00 - 150.00 120.00 - - 0.8
HtchChMd 1730 27.50 2020 950.50 - 1544.64 9.9
BrooksMac 1783 1.50 1820 1300 1.46 28.47 3.5 Xtract Res 0.24 -0.01 0.49 0.06 - -2.61 40671.9 NewmkSec 4.20 0.08 4.85 1.66 1.79 8.94 354.2 Dalata 287.50 - 294.00 111.15 - 101.91 0.1
600 Grp 18.00 - 22.05 14.60 - 6.99 2.8 ImmuPhar 43.50 0.50 67.00 37.00 - -12.66 241.5
Camellia 9524 76.50 10694 8450 1.31 92.76 2.2 ZincOx 12.50 -0.25 18.00 6.00 - -0.92 62.9 NormanBr 18.00 - 25.00 16.00 - -1.95 5.0 Dart 443.00 -2.00 452.00 193.46 0.63 20.15 222.4
Molins 82.00 1.00 167.00 74.50 6.71 -53.28 33.9 ReNeuron 5.63 -0.13 6.50 2.75 - -12.50 2114.2
CaptlMgt 117.00 - 205.00 103.00 - -1.50 0.0 NWF 157.00 -1.00 159.04 120.00 3.25 16.09 91.3 GoalsSocc 200.00 -1.50 242.00 198.00 0.93 22.49 8.5
MS Intl 189.00 - 203.00 116.00 4.23 23.05 2.0 Sareum 0.24 - 0.68 0.20 - -4.05 3742.5
Fairpoint 132.50 - 141.75 105.66 4.64 20.28 14.0 Oil & Gas Optimal Pay 259.00 -7.50 575.00 215.00 - 21.53 3026.1 MinoanGp 9.38 - 15.73 7.25 - -15.27 1.9
Pres Tech♦ 237.50 -2.50 750.00 180.00 3.54 14.40 6.2 SinclairIS 45.75 0.25 48.00 23.30 - -17.54 197.8
Leeds 37.50 2.00 43.79 30.00 - 9.18 70.0 AlkneEng 23.00 - 40.35 19.50 0.87 10.29 26.8 PennaCns 219.50 - 225.00 116.00 1.22 133.52 100.0 PeelHtls 105.50 - 110.00 74.50 - 22.59 1.5
TP Group 3.88 0.13 7.40 3.00 - -4.38 454.3 Vernalis 75.50 2.00 75.50 30.75 - -113.53 314.6
MattioliWds 565.50 - 570.00 414.00 1.61 25.32 10.6 AmeriRes 35.25 1.00 67.25 19.10 - 21.57 1570.5 Petards 11.13 0.25 15.99 9.75 - 10.03 8.0
Miton 25.00 -0.75 38.50 18.50 2.16 -7.65 175.2 Industrial General AndesEnrg 29.50 0.75 49.42 16.50 - -21.77 3.4 Real Estate Utilities
RedhallGp 12.38 - 28.00 8.50 - -0.43 1.6
MAB 243.25 0.75 268.49 160.00 - 25.37 2.8 BahamasP 2.24 0.09 4.70 1.50 - -9.57 343.5 ModernWtr 12.25 - 30.30 12.00 - -0.55 16.3
Powerflte 79.25 0.75 80.00 35.00 1.32 49.28 201.5 Conygar 179.50 1.00 195.00 160.00 0.97 9.10 28.5 Renew 336.50 -1.00 348.00 227.00 1.49 19.50 28.1
Numis 260.50 -4.75 280.00 196.09 4.03 19.78 49.4 BorSthnPet 3.00 -0.38 14.50 3.00 - -5.83 466.8 RenEnGen 47.75 -0.13 68.00 47.00 4.61 -33.37 94.0
RM2 65.00 -0.25 79.95 46.00 - -6.83 239.5 FltchKng 45.00 - 65.00 38.00 6.67 6.26 6.5 Restore 250.00 -0.50 289.00 175.00 0.84 41.70 78.4
Park Grp 73.50 -0.50 74.00 47.00 3.47 15.97 28.7 Circle Oil 7.63 0.13 28.70 7.24 - -1.24 493.7 Rurelec 1.63 - 8.50 1.55 - -3.10 187.0
Symphny 8.50 - 11.22 6.50 - -36.32 33.7 InlandHms♦ 69.25 1.00 73.50 43.00 0.87 21.89 898.1 SafeCharge 264.00 -1.00 297.00 192.43 0.70 39.68 28.1
Plus500 381.25 0.75 781.00 198.00 6.48 6.67 209.6 ClontarfEn 0.38 - 1.48 0.26 - -4.08 2.6 SeaEnergy 10.50 0.25 39.50 10.00 - -2.33 32.0
Lok'nStor 288.00 2.50 300.30 199.17 2.43 122.40 8.5 Servoca 23.75 - 26.03 11.00 - 17.67 6.5
Utilityws 235.00 -3.00 312.50 192.34 1.70 16.39 194.0

Investment Companies
Conventional (Ex Private Equity) 52 Week Dis(-) Edin Inv♦ 687.00 3.00 706.00 565.20 3.44 699.6 -1.8 JPM I&C Uni 366.00 1.00 370.50 330.06 - 374.4 -2.2 ScotAmer 265.25 1.00 276.50 221.99 3.98 250.2 6.0 Albion Ent 89.50 2.00 92.00 85.00 5.59 95.3 -6.1 MMP 3.13 - 5.00 3.00 - - -
Price +/-Chg High Low Yld NAV or Pm Edin WWd 488.75 -1.00 502.44 332.25 0.41 497.4 -1.7 JPM Inc&Gr 112.00 - 115.85 98.50 1.96 117.1 -4.4 Scottish In 626.00 -2.00 670.00 536.00 1.92 691.7 -9.5 AlbionTech 75.50 - 78.75 71.25 6.62 80.2 -5.9 Marwyn Val 235.50 - 251.93 196.00 - - -
3i Infra■ 167.40 -0.10 189.56 151.00 4.47 - - EP Global 247.25 - 262.10 207.04 1.09 244.3 1.2 JPM Ind 527.25 -0.25 605.50 402.83 - 594.4 -11.3 ScottMort 268.50 1.20 283.40 202.70 1.08 258.6 3.8 AlbionVCT♦ 66.50 - 68.65 63.00 7.52 68.4 -2.8 TerraCat 105.00 - 126.70 64.00 - - -
AbnAsianIn♦ 184.00 - 213.80 181.00 4.29 181.7 1.3 Estabmt♦ 163.00 - 188.00 158.50 2.88 207.7 -21.5 JPM JpSm 241.38 0.63 261.75 184.00 - 275.8 -12.5 ScottOrtll 765.00 -4.50 900.00 759.00 1.50 872.4 -12.3 Amati VCT♦ 66.75 - 74.50 65.78 7.49 70.2 -4.9
AbnAsian 783.00 1.00 1014 766.50 1.28 892.6 -12.3 Euro Ast 1105 -2.50 1160 800.00 - 1091.9 1.2 JPM Jap 295.25 -1.75 307.95 195.00 - 318.9 -7.4 SecTstScot 134.50 -0.13 148.00 129.00 3.57 143.6 -6.3 AmatiVCT2 103.25 1.25 113.97 101.52 6.54 107.7 -4.1 ISDX
AbnJapInv 553.00 0.50 562.00 357.50 0.81 538.3 2.7 EuroInvT 799.50 -1.00 849.00 659.33 1.75 834.8 -4.2 JPM Mid 950.00 - 950.00 669.10 1.89 1017.4 -6.6 Seneca I&G 146.50 - 150.00 131.00 3.82 148.2 -1.1 ArtemisVCT 62.00 - 70.52 59.23 6.45 70.0 -11.4
F&C Cp&I 265.00 0.13 277.00 231.75 3.74 265.8 -0.3 JPM O'seas 1058 1.00 1159 890.95 1.42 1146.2 -7.7 Shires Inc♦ 233.50 0.50 261.00 216.26 5.14 248.2 -5.9 Baronsmd 73.63 - 75.31 69.50 4.75 76.4 -3.6 52 Week Vol
AbnLatAmIn♦ 53.38 0.25 85.68 51.00 7.96 59.2 -9.8
F&CGblSmlr♦ 972.25 -3.25 1028.92 781.00 0.84 965.4 0.7 JPMRussian 315.38 1.38 447.00 223.25 4.12 367.1 -14.1 StdLf Eqt 453.88 2.88 469.00 362.50 3.08 458.0 -0.9 ..VCT 2 95.38 - 97.50 91.00 4.72 98.7 -3.4 Price +/-Chg High Low Yld P/E 000s
..Sub 0.30 - 5.50 0.20 - - -
F&CMgdG 155.50 -0.50 158.00 130.00 - 152.8 1.8 JPMSnrSec 90.63 - 101.00 89.22 - 95.1 -4.7 StdLf Sml 323.00 0.50 325.95 256.00 1.39 353.7 -8.7 ..VCT 3 98.88 - 105.00 94.00 15.68 102.5 -3.5 ArsenalFC 1587500 - 1590000 1400000 - 68.02 0.0
AbnNewDn 169.88 1.38 205.23 166.50 2.12 193.3 -12.1
F&CMgdI 123.00 - 130.00 110.00 4.02 121.1 1.6 JPM Smlr 843.75 1.50 860.00 527.00 1.14 1010.1 -16.5 StrategicEq 232.50 1.75 241.50 152.85 0.34 219.0 6.2 ..VCT 4 92.13 - 92.75 86.75 9.77 95.4 -3.4 ShephdNm 1115 -20.00 1260 1000.00 2.32 24.74 2.3
AbnNewThai 374.25 - 489.88 361.76 2.14 437.8 -14.5
FidAsian 235.50 -1.50 285.50 220.25 0.47 263.7 -10.7 JPM US Sml 173.88 -0.25 193.75 134.50 0.40 185.9 -6.5 Temp Bar 1156 -1.00 1274 1101 4.05 1198.7 -3.6 ..VCT 5 77.38 0.38 77.14 72.00 7.75 85.3 -9.3 Thwaites 115.50 - 132.00 108.00 3.86 10.41 10.0
AbnSmlCo♦ 220.75 0.75 229.00 174.00 2.98 258.4 -14.6
Abn UK 316.00 2.75 334.75 288.00 4.19 335.9 -5.9 FidChiSpS 133.50 -2.50 179.78 109.00 0.86 161.5 -17.3 JupDv&G♦ 121.50 - 124.50 107.00 - 128.0 -5.1 TempEmerg 458.10 -3.40 626.64 455.00 1.58 522.8 -12.4 BSC VCT♦ 88.00 1.00 92.20 82.00 6.25 99.7 -11.7
Abf Gd Inc 202.00 - 204.25 138.25 3.55 226.5 -10.8 Fid Euro 178.00 -1.00 187.50 137.40 1.67 186.4 -4.5 JupEur 544.50 -2.50 562.00 371.25 0.64 537.9 1.2 TRIG 103.50 0.25 109.00 99.00 5.31 - - ..VCT2 56.00 - 61.00 51.98 8.04 62.3 -10.1
Abf Sml 1168 1.00 1235 966.00 2.12 1309.1 -10.8 Fid Jap 84.00 0.25 88.25 64.00 - 96.0 -12.5 JupPrim 309.00 1.00 332.50 268.34 2.07 316.9 -2.5 ThreadUKSel 176.00 - 184.70 160.00 2.44 193.0 -8.8 Crown Place 29.00 - 30.50 27.75 8.62 26.0 11.5 Guide to FT Share Service
AcenciADbt $ 1.65 - 114.00 1.63 3.71 1.8 -8.3 Fid Spec 206.75 1.25 217.00 159.37 1.60 - - JupUSSmCo 649.00 -6.25 704.03 596.99 - 694.4 -6.5 TREurGth 641.00 2.50 661.00 438.00 1.01 695.6 -7.8 FrsightSol 102.50 - 105.25 95.00 5.85 108.0 -5.1
AdvDvpMk 425.38 2.25 483.00 401.00 - 463.4 -8.2 FinsG&I 582.00 1.50 609.36 464.25 2.01 579.3 0.5 KeystoneInv 1840 10.00 1900 1651.76 2.74 1932.9 -4.8 TroyInc&G♦ 71.25 0.25 74.71 60.00 3.19 70.7 0.8 Inc&GthVCT 90.50 - 104.00 88.25 19.89 103.2 -12.3
Alliance 493.00 3.80 531.50 420.20 2.01 562.9 -12.4 FstPacfic H HK$ 6.15 0.09 9.48 6.02 3.42 - - Law Deb 527.50 1.00 545.50 465.10 2.98 483.0 9.2 UtilicoEmg 179.00 -2.50 206.09 178.50 0.85 198.3 -9.7 KingsAYVCT 18.13 - 19.50 17.25 5.52 19.7 -8.0
AllianzTech 615.00 -1.50 640.43 463.07 - 640.0 -3.9 For & Col♦ 439.50 -0.20 467.90 365.00 2.14 478.3 -8.1 LinTrain £ 528.00 - 537.00 355.94 1.28 418.4 26.2 UtilicoInv 116.75 - 133.80 103.00 6.42 159.9 -27.0 Maven I&G 64.50 - 67.50 59.50 6.98 64.8 -0.5 For queries about the London Share Service pages e-mail
AltAstsOps 39.00 -0.25 47.00 35.50 - 44.1 -11.6 Geiger 14.38 - 27.95 13.75 - 17.0 -15.4 Ln&StLaw♦ 347.13 0.25 384.00 330.80 3.98 379.2 -8.5 ValAndInc 255.50 - 274.00 238.43 3.41 304.1 -16.0 MavenVCT2 52.25 - 56.75 49.00 7.37 58.9 -11.3 ft.reader.enquiries@morningstar.com.
Art Alpha♦ 276.50 0.50 308.00 257.00 1.18 334.1 -17.2 GenEmer 483.00 -5.40 583.00 482.67 - 533.2 -9.4 Lowland♦ 1385 5.50 1440 1219 2.74 1405.7 -1.5 Witan 791.00 -1.00 850.00 642.00 - 793.4 -0.3 MavenVCT3♦ 74.00 -1.25 79.00 70.00 2.70 87.8 -15.7 All data is as of close of the previous business day. Company classifications
..Sub 20.25 - 45.25 18.10 5.93 - - GFIS 18.13 - 29.61 15.50 - 46.9 -61.3 M&GHighInc♦ 162.00 -2.25 179.95 148.00 1.85 171.3 -5.4 WitanPac 244.13 0.13 274.75 219.25 1.84 273.8 -10.8 MavenVCT4 84.00 - 88.39 80.00 5.65 96.1 -12.6 are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE
AsianToRt 191.00 -2.50 224.00 176.00 1.70 207.4 -7.9 GRIT 12.75 -0.25 40.00 11.00 - - - Majedie 267.75 - 283.00 206.41 2.80 265.9 0.7 WorldTst 259.00 -1.75 285.25 212.00 0.20 297.8 -13.0 MavenVCT5♦ 34.63 -0.88 37.00 29.25 2.89 42.6 -18.7 100 constituent stocks are shown in bold.
Aurora 155.25 0.25 167.13 144.00 2.45 170.6 -9.0 GoldenPros 18.88 0.38 42.59 18.00 - 23.7 -20.3 Man&Lon 241.38 5.38 264.00 219.00 3.10 293.4 -17.7 WwideHlth 1972 -31.00 2108.5 1265.01 0.71 2065.7 -4.5 Nthn 2 VCT 69.25 - 88.00 67.25 2.89 73.7 -6.0 Closing prices are shown in pence unless otherwise indicated. Highs & lows
BG Japan 460.00 -3.25 493.25 316.50 - 445.4 3.3 Hansa 875.25 -0.25 988.00 836.50 2.17 1144.4 -23.5 MCGlobPort 178.75 0.75 195.00 158.00 2.24 179.8 -0.6 Nthn 3 VCT 89.50 - 104.00 88.00 6.15 95.1 -5.9 are based on intra-day trading over a rolling 52 week period. Price/earnings
Conventional - Private Equity 52 Week Dis(-)
BG Shin 415.00 -2.50 424.00 282.50 - 397.4 4.4 ..A 840.00 - 949.00 810.00 - 1144.4 -26.6 MCurPac♦ 283.50 -1.00 336.00 276.00 2.65 321.6 -11.8 NthnVent 76.00 - 85.36 74.50 7.89 79.5 -4.4 ratios (PER) are based on latest annual reports and accounts and are updated
Price +/-Chg High Low Yld NAV or Pm
BSRT 22.13 - 39.80 20.00 - 40.4 -45.2 Hend Alt 233.88 - 254.00 218.00 1.28 280.1 -16.5 MercantIT♦ 1682 -20.00 1730 1316.55 2.38 1907.4 -11.8 ProVenGI♦ 79.00 - 81.25 76.00 5.06 83.3 -5.2 with interim figures. PER is calculated using the company’s diluted earnings
Hen Div 91.00 - 95.50 87.50 5.60 89.5 1.7 MrchTst♦ 467.25 4.75 506.33 422.18 5.07 479.3 -2.5 AbnPvtEq 87.75 -1.00 96.00 79.04 2.55 119.9 -26.8 ProVenVCT♦ 94.50 - 97.89 89.50 4.76 100.2 -5.7
Bankers♦ 632.50 -5.50 674.50 506.00 2.39 638.8 -1.0 from continuing operations. Yields are based on closing price and on dividends
HenEuroF 1089.5 0.50 1148.5 816.47 2.15 1052.3 3.5 Mid Wynd 331.00 - 352.50 260.07 1.15 332.3 -0.4 Altamir € 10.91 0.04 11.86 9.43 - 16.2 -32.7 UnicornAIM 131.50 - 133.00 122.00 4.56 148.4 -11.4
BrngEmEu 496.00 -2.00 679.00 432.00 3.83 570.9 -13.1 paid in the last financial year and updated with interim figures. Yields are
HenEuro 901.00 - 957.00 678.25 1.94 883.5 2.0 MitonUKMic 54.00 - 56.25 50.00 - - - Dun Ent 354.38 4.88 419.75 305.00 4.66 512.1 -30.8
BH Global 1301 -1.00 1343.6 1178 - 1391.0 -6.5 Ordinary Income Shares 52 Week HR shown in net terms; dividends on UK companies are net of 10% tax, non-UK
HenFarEs 309.00 2.00 362.00 305.00 1.52 302.1 2.3 MitonWw 162.38 -0.13 164.65 149.00 - 178.3 -8.9 Electra 3262 -30.00 3324 2338 - 3524.4 -7.4
..EUR € 12.00 - 14.00 11.80 - - - Price +/-Chg High Low Yld WO GRY 0% companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect
HendGlob 383.38 5.38 416.81 336.20 2.61 432.2 -11.3 MMP 3.13 - 5.00 3.00 - - - ElectraPrf 151.38 - 151.75 144.25 - 145.0 4.4
..USD $ 12.90 -0.15 13.35 11.70 - 13.7 -5.8 capital changes where appropriate.
HenHigh 185.50 - 195.25 156.50 4.64 181.6 2.1 Monks♦ 416.80 -1.20 458.90 348.40 0.95 460.9 -9.6 F&C PvtEq 218.00 - 230.00 197.00 4.93 273.6 -20.3 JPM I&C 100.00 - 106.00 86.00 6.50 -16.1 -2.1
BH Macro 2085 - 2191 1930 - 2195.0 -5.0 Trading volumes are end of day aggregated totals, rounded to the nearest
HenInt Inc 119.50 -0.13 137.69 103.00 3.60 121.6 -1.7 MontanSm 530.50 1.50 544.00 390.50 1.32 570.9 -7.1 GraphEnt 591.00 2.00 605.00 536.10 1.27 673.2 -12.2 JupiterDv&G♦ 4.63 - 5.50 3.50 15.57 5.3 -41.3
..EUR € 20.23 -0.01 21.10 18.70 - 21.2 -4.6 1,000 shares.
Hen Opp 1032 - 1050 755.00 1.21 1079.2 -4.4 Mur Inc 711.50 -1.50 796.60 692.50 4.61 759.9 -6.4 HVPE $ 13.63 - 13.67 11.80 - 16.3 -16.4 M&GHI&Gt♦ 60.75 -1.75 67.00 55.00 - -18.3 -2.0
..USD $ 20.07 0.04 21.10 18.67 - 21.1 -4.9
HenSmlr 662.00 -3.75 696.00 468.13 1.66 740.7 -10.6 Mur Int♦ 909.00 3.00 1123 899.50 4.96 898.1 1.2 HgCapital 1104 -2.00 1169 1005 2.63 1198.3 -7.9 Rghts&Icp 4785 42.50 4830 3800 - -76.6 0.7 Net asset value per share (NAV) and split analytics are provided only as a
BiotechGth 824.00 -14.00 898.92 470.50 - 851.3 -3.2
Herald 733.50 0.25 742.50 594.00 - 864.5 -15.2 ..B 925.00 - 1437.89 787.45 - 896.8 3.1 JPM Pvt Eq $ 1.04 0.01 1.04 0.76 - 1.3 -20.0 guide. Discounts and premiums are calculated using the latest cum fair net
BlckRCom 71.25 0.25 119.88 68.49 8.44 68.3 4.3 Income Shares 52 Week HR
HICL Infra 152.10 -0.50 161.40 140.10 5.94 136.7 11.3 NB DDIF $ 1.16 - 1.25 1.00 - - - JZ Capital 450.00 - 480.00 390.00 - 674.8 -33.3 asset value estimate and closing price. Discounts, premiums, gross redemption
BlckREmEur 208.75 2.75 250.76 169.25 1.11 226.9 -8.0 Price +/-Chg High Low Yld WO GRY 0%
Impax Env. 152.25 -0.13 167.75 136.00 0.79 170.4 -10.7 NewCtyEgy 14.50 - 38.25 12.25 - 19.3 -24.9 Mithras 144.50 - 151.91 130.00 0.69 158.0 -8.5 yield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)
BlckRFrnt 114.38 0.88 133.28 103.50 3.64 113.3 1.0 JPM In&Gr 98.75 - 100.49 90.15 4.46 -69.0 8.9
Ind IT 334.00 - 350.00 268.50 1.50 358.2 -6.8 ..Sub 0.13 - 0.15 0.06 - - - NB PE Ptnr $ 11.73 - 12.20 10.63 - - - are displayed as a percentage, NAV and terminal asset value per share (TAV)
BlckRGtEur 248.25 -0.13 264.50 201.75 1.89 257.9 -3.7 M&GHghIc♦ 60.25 -2.00 63.00 53.00 - -18.2 -1.4
Intl PP 136.70 - 140.59 130.34 4.55 123.0 11.1 NewCityHY♦ 59.25 -1.75 66.50 58.50 7.14 57.1 3.8 Nthn Invs 575.00 2.50 655.00 385.00 1.74 526.7 9.2 in pence.
..Sub 17.88 0.38 25.63 8.00 - - - Rghts&I 1125 - 1245 895.00 3.20 - 39.8
InvAsTr♦ 181.00 -2.00 213.58 175.50 1.91 202.2 -10.5 NewIndia 333.63 1.25 371.30 257.50 - 361.8 -7.8 Pantheon 1305 1.00 1355 1136 - 1535.2 -15.0
BlckR I&G♦ 184.50 0.75 193.00 158.01 3.09 188.8 -2.3
Inv Inc 291.38 1.38 305.00 255.00 3.43 312.3 -6.7 New Star IT 73.50 - 77.91 65.45 - 113.4 -35.2 PantheonR 1285 - 1300 1055 - 1536.2 -16.4 Capital Shares 52 Week HR X FT Global 500 company
BlckRIncStr 136.50 - 140.50 119.25 4.73 139.3 -2.0
InvPerp♦ 72.00 - 79.00 69.00 6.94 71.1 1.3 NorthAmer 794.00 -2.00 906.45 790.45 - 883.1 -10.1 PrincssPE € 7.75 - 8.12 6.50 7.73 9.2 -15.8 Price +/-Chg High Low SP WO TAV 0% ♦ trading ex-dividend
BlckRckLat 322.88 -3.50 508.45 317.01 5.98 367.9 -12.2
IPST BalR 119.00 -0.25 123.00 114.00 - 119.1 -0.1 NthAtSml 2034.5 -2.00 2045 1625.86 - 2566.7 -20.7 Riverstone 938.00 -19.00 1114 822.00 - 1048.0 -10.5 JPM Inc&Gr 13.50 0.25 15.19 9.00 1.6 -5.5 10.3 ■ trading ex-capital distribution
BlckRckNrAm 113.88 -0.13 124.50 98.75 3.51 123.7 -7.9
IPST Gbl Eq 160.25 - 172.00 138.00 2.75 161.2 -0.6 Oryx Int 555.00 - 565.00 375.00 - 625.2 -11.2 StdLfEuPv 210.75 -0.13 236.42 200.00 2.37 262.0 -19.6 M&GHghIc 4.20 - 5.39 3.00 8.8 7.5 - # price at time of suspension from trading
BlckRSmlr 925.50 2.00 962.00 697.00 1.39 1040.6 -11.1
BlckRThrmt 329.25 0.13 337.00 238.00 1.34 386.2 -14.7 IPST Mngd 102.13 -0.13 102.50 100.75 - 103.2 -1.0 PacAsset 197.13 -0.63 226.15 169.50 1.32 193.8 1.7 Conventional - Property ICs 52 Week Dis(-) Zero Dividend Preference Shares 52 Week HR The prices listed are indicative and believed accurate at the time of publication.
BlckRWld 247.00 0.75 508.98 241.50 8.50 269.2 -8.2 IPST UK Eq♦ 171.00 0.75 174.00 143.00 3.30 169.5 0.9 PacHorzn 181.63 -1.38 223.77 172.00 0.77 196.3 -7.5 Price +/-Chg High Low Yld NAV or Pm Price +/-Chg High Low SP WO TAV 0% No offer is made by Morningstar or the FT. The FT does not warrant nor
Bluecrest A 188.40 0.80 194.60 182.93 - 200.1 -5.8 InvPpUK 383.00 0.50 390.46 281.00 1.70 408.0 -6.1 Perp I&G 420.10 1.60 431.00 350.81 2.88 416.6 0.8 Direct Property Abf Gd Inc 151.75 0.50 153.25 143.00 -43.2 - 159.7 guarantee that the information is reliable or complete. The FT does not accept
Brit Emp 492.10 -3.10 557.08 475.40 2.13 564.1 -12.8 Invs Cap A♦ 94.50 - 102.00 87.00 4.74 101.7 -7.1 PerAsset 34100 -156.00 36313.1 33390 1.64 34314. -0.6 EcofinWatr 154.38 - 155.00 149.50 -83.8 - 160.7
AseanaPr $ 0.59 - 0.58 0.42 - 0.6 -1.7 responsibility and will not be liable for any loss arising from the reliance on
Brunner 570.00 - 581.15 486.00 2.11 635.7 -10.3 Invs Cap B♦ 96.50 - 103.00 87.03 1.19 101.7 -5.1 2 JPM I&C 173.25 - 174.00 165.50 -20.4 - 192.1
AXA Propty 45.63 -0.38 47.00 39.45 - - - or use of the information.
Calednia♦ 2350 -12.00 2517.66 2102.52 2.11 2767.2 -15.1 Invs CapU 381.50 - 404.95 347.00 - 406.7 -6.2 PolarFins 110.88 - 112.84 92.00 2.80 115.2 -3.8 JupiterDv&G 112.38 - 114.00 99.50 -7.4 - 133.6
CustdnREIT 109.00 - 111.50 104.00 3.44 - -
CanGen C$ 20.03 0.11 22.00 17.80 - 26.6 -24.7 JLaingInf 120.70 -0.40 128.60 115.00 5.39 109.5 10.2 ..Sub 8.75 - 13.00 5.00 - - - JZ Capital 357.25 - 358.90 341.50 -83.1 -96.7 369.8 The London Share Service is a paid-for-print listing service and may not be
F&CComPrp♦ 146.10 -0.90 149.00 121.20 4.11 125.2 16.7
Cap Gear 3275 -30.50 3575 3080 0.49 3228.5 1.4 JPM Amer 273.00 -1.30 296.14 236.05 0.99 288.8 -5.5 PolarHealth 183.25 -0.25 187.50 142.50 1.94 190.7 -3.9 M&GHghIc 114.25 - 114.70 110.01 -21.8 -95.8 122.8 fully representative of all LSE-listed companies. This service is available to all
F&CUKRealE 101.00 1.00 104.50 85.31 4.95 92.0 9.8
City Merch♦ 185.38 - 194.00 182.15 5.39 181.9 1.9 JPM Asn 219.00 -3.13 268.92 205.45 1.00 244.9 -10.6 PolarTech 587.50 -10.50 614.00 458.80 - 589.8 -0.4 UtilicoFn16 184.38 - 186.00 176.65 -65.5 - 192.8 listed companies, subject to the Editor’s discretion. For new sales enquiries
InvistaERET 0.13 - 4.39 0.05 - 4.7 -97.2
CityNatRs♦ 90.75 -3.75 146.00 90.00 6.17 111.2 -18.4 JPM Brazil 45.50 0.25 76.49 44.25 1.87 49.3 -7.7 ProspJap $ 0.99 - 1.18 0.91 - 1.3 -23.8 UtilicoFn18 140.75 -0.50 146.50 127.93 -20.1 -32.8 160.5 please email stella.sorrentino@ft.com or call 020 7873 4012.
Longbow 103.00 0.25 106.75 101.25 5.58 - -
City Lon 399.30 -1.00 418.35 345.00 3.73 390.0 2.4 JPM China 166.00 -5.50 233.96 155.52 0.96 201.9 -17.8 QatarInvF $ 1.30 0.02 1.49 1.15 - 1.5 -13.3 UtilicoFn20 122.00 - 123.00 100.00 -9.2 -11.9 154.9
PictonProp 74.00 0.25 74.50 60.50 4.05 70.6 4.8
DexionAb 188.75 - 191.00 167.00 - 197.6 -4.5 JPMElct MC 100.00 0.25 101.99 97.01 - 101.8 -1.8 RIT Cap 1565 -13.00 1615 1265.55 - 1590.7 -1.6
SLIPropInc 85.75 0.50 90.25 72.90 5.38 77.9 10.1
..EUR € 2.53 - 2.65 2.40 - 2.7 -6.3 ..MG 615.00 - 635.00 507.66 1.15 627.2 -1.9 RobecoNV € 30.38 - 30.91 28.19 - - -
UKComPrp 88.45 -0.55 94.00 80.50 4.60 85.3 3.7 Investment Companies - AIM Data provided by Morningstar
..USD $ 3.85 - 3.89 3.53 - 4.2 -8.3 ..MI 103.50 1.00 109.50 93.01 1.64 107.8 -4.0 RolincoNV € 28.32 - 28.98 26.38 - - -
DiverseInc♦ 90.38 - 91.23 73.02 2.66 88.7 1.9 JPM Emrg 570.00 -4.50 674.65 548.50 0.96 645.6 -11.7 Ruffer Inv 222.00 -1.00 226.00 193.50 - 217.1 2.3 Property Securities 52 Week Dis(-)
JPM EurGth 246.25 -0.13 263.00 193.00 2.72 264.1 -6.8 SchdrAsiaP 271.00 -2.00 321.50 253.07 1.01 302.5 -10.4 SchdrGlbRe 118.75 -1.13 132.98 98.88 2.97 128.0 -7.2 Price +/-Chg High Low Yld NAV or Pm
Dun Inc 248.50 1.00 275.00 239.00 4.47 265.6 -6.4
JPM EurInc 133.88 -0.25 147.50 104.75 1.90 137.0 -2.3 Schdr Inc♦ 286.00 0.25 290.52 235.50 3.53 287.3 -0.5 TR Prop♦ 297.50 -0.10 325.00 232.40 2.54 305.9 -2.7 AdFrntMkt 55.75 - 65.50 55.00 - 60.2 -7.4
Dun Sml 214.50 -2.50 229.00 171.30 2.45 251.0 -14.5
EcofinWatr 140.00 0.88 176.75 132.56 5.00 173.9 -19.5 JPM EuSm 253.50 2.25 256.00 164.00 1.14 274.0 -7.5 SchdrJap 159.00 0.13 165.00 115.25 - 167.6 -5.1 VCTs 52 Week Dis(-) CrysAmber♦ 168.00 - 169.00 129.81 0.3 170.1 -1.2
..CULS 104.00 - 111.70 103.00 - - - JPM Clavr 608.00 -0.25 645.18 534.51 3.21 659.2 -7.8 SchdrOrient♦ 187.25 -1.13 215.25 179.00 4.09 187.1 0.1 Price +/-Chg High Low Yld NAV or Pm GLI Finance♦ 57.25 -1.38 65.00 51.00 8.7 - -
JPMGIConv 99.00 1.00 112.00 97.00 5.68 100.9 -1.9 SchdrUK♦■ 166.50 3.25 174.00 146.83 2.85 180.8 -7.9
EdinDragn
..CULS
264.25
105.50 -
1.75 311.00 260.27
107.89 103.00
-
-
297.2
- -
-11.1
JPM GEI♦ 100.00 -1.25 130.00 98.00 4.90 103.6 -3.5 SchdrUKMd 489.63 - 504.50 402.49 1.74 535.4 -8.5
AlbionDev 68.50 - 70.89 66.00 7.30 72.9 -6.0 IndiaCap
Infra India
62.50
20.75
-
-
69.40 46.00
21.99 10.00
-
-
74.5
52.1
-16.1
-60.2
www.morningstar.co.uk
Friday 31 July 2015 ★ FINANCIAL TIMES 25

MANAGED FUNDS SERVICE

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

Artemis Strategic Bond R Q Inc 54.83 58.21 0.00 4.11 CF Seneca Diversified Income A INC 89.78 - 0.18 5.99 (LF) Greek Corporate Bond € 10.67 - 0.02 0.00 UK £ 3.66 - 0.03 1.86 Corp Pens Equity 229.12 229.12 0.82 -

Artemis UK Growth R Acc 464.77 492.32 5.70 0.55 CF Seneca Diversified Income B INC 106.32 - 0.20 6.14 (LF) FOF Balanced Blend € 1.45 - 0.00 0.00 UK Aggreg Bond Gr Accum £ 1.79 - 0.00 3.17 Corp Pens Fixed Interest 294.34 294.34 -0.31 -
ACPI Global UCITS Funds Plc (IRL)
www.acpishard.com Artemis UK Smaller Cos R Acc 1123.54 1214.50 0.42 0.50 CF Seneca Diversified Income N INC 105.37 - 0.20 6.14 (LF) FOF Equity Blend € 1.39 - 0.01 0.00 UK Aggregate Bond Inc £ 1.21 - 0.00 3.24 Corp Pens Index Linked 334.16 334.16 -2.94 -
Regulated
Artemis UK Special Sits R Acc 524.32 557.44 0.62 1.62 Investment Adviser - DSM Capital Partners (LF) FOF Glob. Emerging Mkts € 0.91 - 0.01 0.00 UK Corporate Bond £ 1.22 - 0.00 4.06 Corp Pens Deposit 190.70 190.70 0.01 -
ACPI Emerging Mkts FI UCITS Fund USD A $ 112.72 - 0.41 0.00
The Westchester X $ 28.98 - 0.17 0.00
Artemis US Abs Ret I Acc 104.36 - 0.18 - (LF) FOF Dynamic Fixed Inc € 11.98 - 0.00 0.00 UK Corporate Bond - Gross £ 2.25 - 0.00 3.92 Corp Pens Protector 352.14 352.14 -0.67 -
ACPI Global Credit UCITS Funds USD A $ 13.93 - -0.01 0.00
The Westchester Class 1 GBP Acc £ 20.10 - 0.14 0.00
Artemis US Equity I Acc 113.20 - 1.29 - (LF) FOF Real Estate € 16.62 - 0.03 0.00 UK Corporate Bond Fund Gross Inc £ 11.03 - -0.02 4.04 Corp Pens UK Index Tracker £ 1.98 1.98 0.01 -
ACPI Global Fixed Income UCITS Fund USD A $ 151.53 - -0.02 0.00
BlueBay Asset Management LLP (LUX) The Westchester Class 2 GBP Acc £ 20.14 - 0.14 0.00 Dodge & Cox Worldwide Funds (IRL) Guardian Linked Life Assurance Ltd
Artemis US Select I Acc 114.61 - 1.48 - UK Gilt Bond £ 1.26 - 0.00 1.92
Q ACPI India Fixed Income UCITS Fund USD A $ 10.11 - 0.02 - Regulated Investment Adviser - Morant Wright Management Limited 6 Duke Street,St.James,London SW1Y 6BN
Artemis US Select I Inc 102.36 - 1.32 - UK Gilt Gross £ 2.00 - 0.00 1.89 Managed Acc £ 18.10 19.06 0.02 -
BlueBay EmMkt B-USD $ 288.63 - 0.99 0.00 www.dodgeandcox.worldwide.com 020 3713 7664
ACPI India Fixed Income UCITS Fund USD A3 $ 86.34 - 0.18 0.00 CF Morant Wright Japan A X 268.71 - 0.83 0.00
Artemis US Smlr Cos I Acc 121.63 - 1.22 - FCA Recognised UK Long Corp Bond £ 1.36 - 0.00 4.52 Equity Acc £ 33.25 35.00 0.10 -
ACPI International Bond UCITS Fund USD A $ 17.99 - -0.02 0.00 BlueBay EmMktCrp B-USD $ 163.65 - -0.95 0.00 CF Morant Wright Japan A Inc X 264.74 - 0.82 0.00 Dodge & Cox Worldwide Funds plc - Global Bond Fund
Artemis US Ex Alpha I Acc 116.61 - 1.03 - UK Long Corp Bond - Gross £ 2.45 - -0.01 4.34 Fixed Interest Acc £ 16.91 17.80 -0.02 -
BlueBay EmMktSel B-USD $ 149.07 - 0.60 0.00 CF Morant Wright Japan B X 285.42 - 0.89 0.52 EUR Accumulating Class € 11.96 - 0.10 0.00
UK Long Corporate Bond Fund - Gross Income £ 10.88 - -0.03 4.49 International Acc £ 13.20 13.89 0.02 -
BlueBay EmMkLocCy B-USD $ 141.29 - 0.62 0.00 CF Morant Wright Japan B Inc X 269.15 - 0.84 0.54 EUR Accumulating Class (H) € 9.41 - 0.01 0.00
ACPI Select UCITS Funds PLC (IRL) International S-NA Acc £ 6.78 7.14 0.01 -
UK Specialist £ 1.93 - 0.02 1.19
Regulated Artisan Partners Global Funds PLC (IRL) BlueBay GlblConv I-USD $ 191.75 - 0.69 0.00 CF Morant Wright Nippon Yield ACC A X 275.16 - 1.64 2.09 EUR Distributing Class € 11.58 - 0.09 2.77
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland FIL Investment Services (UK) Limited (1200)F (UK) Retail Share Classes International S-PA Acc £ 4.10 4.31 0.01 -
ACPI Balanced UCITS Fund USD Retail $ 14.30 - 0.05 0.00 BlueBay GlblHgYd B-USD $ 132.64 - 0.40 0.00 CF Morant Wright Nippon Yield ACC B X 284.85 - 1.71 2.09 EUR Distributing Class (H) € 9.10 - 0.00 3.00
Tel: 44 (0) 207 766 7130 130, Tonbridge Rd, Tonbridge TN11 9DZ
Emerging Markets - retail £ 1.25 - 0.00 0.00 International S-EU Acc £ 3.30 3.48 0.00 -
ACPI Balanced UCITS Fund EUR Retail € 10.79 - 0.03 0.00 FCA Recognised BlueBay HgYield B-EUR € 337.67 - -0.93 0.00 GBP Distributing Class £ 9.91 - 0.01 2.95 Callfree: Private Clients 0800 414161
CF Morant Wright Nippon Yield Fund A Inc X 241.55 - 1.44 2.13
Broker Dealings: 0800 414 181 Europe Long Term Growth £ 1.54 - 0.00 1.84 Managed S-PR Acc £ 6.88 7.24 0.01 -
ACPI Balanced UCITS Fund GBP Retail £ 10.91 - 0.03 0.00 Artisan Partners Global Funds plc
BlueBay HgYieldCp B-EUR € 143.02 - -0.39 0.00 CF Morant Wright Nippon Yield Fund B Inc X 250.12 - 1.49 2.13 GBP Distributing Class (H) £ 9.17 - 0.01 2.94 Authorised Inv Funds {*}CAR - Net income reinvested
Artisan Emerging Markets I USD Acc $ 7.10 - 0.09 0.00 Fixed Interest S-IL Acc £ 6.39 6.73 -0.01 -
ACPI Balanced UCITS Fund USD Institutional $ 10.00 - - - BlueBay InvGr B-EUR € 171.73 - -0.05 0.00 USD Accumulating Class $ 9.47 - 0.01 0.00 Unit Trust
Artisan Global Equity Fund Class I USD Acc $ 15.60 - 0.02 0.00 Cash Accum Units 186.33 186.33 0.01 0.00 Deposit Accum £ 4.45 4.68 0.00 -
ACPI Balanced UCITS Fund EUR Institutional € 10.00 - - - BlueBay InvGEurGv B-EUR € 147.95 - -0.12 0.00 Dodge & Cox Worldwide Funds plc-Global Stock Fund
Artisan Global Opportunities I USD Acc $ 12.61 - 0.00 0.00 Cavendish Asset Management Limited (1200)F (UK) FIL Fund Management (LUX) Guardian Pensions Management Ltd
ACPI Balanced UCITS Fund GBP Institutional £ 10.00 - - - USD Accumulating Share Class $ 17.12 - 0.14 0.00 Cash Fund £ 1.00 1.00 0.00 0.13
BlueBay InvGEurAg I-EUR € 148.41 - -0.07 0.00 Chelsea House, Westgate, London W5 1DR 2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg
Artisan Global Value Fund Class I USD Acc $ 16.55 - 0.08 0.00 Pens. Managed Acc. £ 23.45 24.68 0.05 -
ACPI Focused Equity UCITS Fund $ 13.52 - 0.04 0.00 IFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502 GBP Accumulating Share Class £ 18.05 - 0.16 0.00 Gross Accum Cash £ 1.28 1.28 0.00 0.00 Phone: 800 22 089, 800 22 088
BlueBay InvGLibor B-EUR € 125.37 - -0.02 0.00
Artisan US Value Equity Fund Class I USD Acc $ 11.22 - 0.11 0.00 Authorised Inv Funds Regulated Pens. Equity Acc. £ 35.35 37.21 0.13 -
GBP Distributing Share class £ 13.20 - 0.12 0.71 MoneyBuilder Cash ISA £ 1.00 1.00 0.00 0.13
HighIncomeLoan H-EUR € 194.76 - -0.09 0.00 Cavendish Opportunities Fund B Class 1103.00 - 10.00 1.39 China Consumer A-GBP £ 15.14 - 0.10 0.00
EUR Accumulating Share Class € 23.41 - 0.35 0.00 MoneyBuilder Global £ 2.66 2.66 0.02 0.19
Abbey Life Assurance Company Limited (UK) Cavendish Opportunities Fund A Class 1096.00 - 9.00 0.61 China Focus A-GBP £ 4.51 - 0.04 0.22
100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900 Ashmore Sicav (LUX) Dodge & Cox Worldwide Funds plc-International Stock Fund OEIC Funds HPB Assurance Ltd
additional fund prices can be found @ www.abbeylife.co.uk 2 rue Albert Borschette L-1246 Luxembourg BONHOTE Cavendish Opportunities Fund C Acc 1138.00 - 10.00 1.20 USD Accumulating Share Class $ 15.23 - 0.11 0.00 American £ 28.26 - 0.22 0.00 Global Financial Services A-GBP £ 0.45 - 0.00 0.00 Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
Insurances FCA Recognised Other International Funds International Insurances
Cavendish Worldwide Fund B Class 308.60 - 2.40 0.79 American Special Sits £ 11.45 - 0.11 0.00 Global Health Care A-GBP £ 0.59 - 0.01 0.00
EUR Accumulating Share Class € 16.32 - 0.23 0.00
Life Funds Ashmore SICAV Emerging Market Debt Fund $ 96.67 - 0.37 10.13 Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6802.00 - -33.00 2.22 Holiday Property Bond Ser 1 £ 0.50 - 0.00 0.00
Cavendish Worldwide Fund A Class 307.90 - 2.30 0.07 Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Asia Pacific Ops W-Acc £ 1.05 - 0.00 - Global Industrials A-GBP £ 0.64 - 0.00 0.00

Asset Management
Prop. Acc. Ser 2 1530.20 1610.80 -0.20 - Ashmore SICAV Emerging Market Frontier Equity Fund $ 153.94 - -0.01 0.89 Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 10270.00 - -191.00 0.89 Holiday Property Bond Ser 2 £ 0.60 - 0.00 0.00
Cavendish Worldwide Fund C Acc 315.60 - 2.40 0.80 USD Accumulating Share Class $ 19.03 - 0.15 0.00 Global Inflation-Linked Bd A-GBP-Hdg £ 1.18 - 0.00 0.52

Asset Management
Fidelity Asian Dividend Fund A-Accumulation £ 1.10 - 0.00 1.34
Selective Acc. Ser 2 1597.70 1681.80 4.20 - Ashmore SICAV Emerging Market Total Return Fund $ 84.12 - 0.28 7.49
Cavendish AIM Fund B Class 165.00 - 0.40 0.37 GBP Accumulating Share Class £ 18.97 - 0.15 0.00 Global Real Asset Securities £ 1.40 - 0.02 0.00
Fidelity Asian Dividend Fund A-Income £ 1.05 - 0.00 2.53
American Ser. 4 1670.40 1758.30 13.30 - Ashmore SICAV Global Small Cap Equity Fund $ 128.85 - 0.78 0.00 Braemar Group PCC Limited (GSY) Cavendish AIM Fund A Class 160.20 - 0.40 0.00 GBP Distributing Share Class £ 12.10 - 0.10 0.51 Global Technology A-GBP £ 0.25 - 0.00 0.00 Hamon Investment Group
China Consumer £ 1.52 - -0.01 0.07
Custodian Ser. 4 493.70 519.70 0.70 - Regulated Other International Funds
Ashmore SICAV Local Currency Fund $ 84.79 - 0.30 0.30 EUR Accumulating Share Class € 22.49 - 0.33 0.00
Cavendish Asia Pacific Fund B Class 161.80 - -0.10 1.44 Emerging Asia £ 1.18 - -0.01 0.14 Global Telecomms A-GBP £ 0.29 - 0.01 1.03
UK Agricultural Class A £ 1.26 - -0.01 0.00 Asian Market Leaders - USD $ 25.84 - -0.22 0.00
Equity Ser. 4 575.30 605.60 3.70 - EM Mkts Corp.Debt USD F $ 98.59 - 0.12 7.71
Cavendish Asia Pacific Fund A Class 160.90 - -0.10 0.66 Emerg Eur, Mid East & Africa H £ 1.39 - 0.01 0.94 India Focus A-GBP £ 4.55 - 0.03 0.00
UK Agricultural Class B £ 1.38 - -0.01 0.00 Asian Market Leaders - GBP £ 12.94 - -0.11 0.00
European Ser 4 585.70 616.60 -1.60 - EM Mkts Loc.Ccy Bd USD F $ 82.27 - 0.26 6.59
Cavendish Asia Pacific Fund C Acc 166.40 - -0.10 1.42 Enhanced Income - Acc £ 1.93 - 0.02 7.00 Latin America A-GBP £ 1.48 - 0.03 0.20
Student Accom Class B £ 0.55 - -0.17 0.00 Greater China - USD $ 11.38 - -0.06 0.00
Fixed Int. Ser. 4 882.00 928.50 -2.30 -
Cavendish European Fund B Class 141.50 - -0.20 1.27 Enhanced Income - Inc £ 1.26 - 0.02 7.32 Greater China - GBP £ 4.60 - -0.03 0.00
Intl Ser. 4 443.10 466.40 2.00 -
Cavendish European Fund A Class 139.80 - -0.20 0.37 European - Inc £ 1.48 - 0.00 1.51 Findlay Park Funds Plc (IRL) Selected Asian P'folio $ 48.30 48.31 0.71 0.00
Japan Ser 4 376.20 396.00 1.70 - CAF Financial Solutions (UK)
Cavendish Japan Fund B Class 158.40 - 1.50 0.77 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
Kings Hill, West Malling, Kent 03000 123 222 European £ 16.78 - 0.00 1.14
Man. Ser. 4 1674.60 1762.80 5.00 - FCA Recognised
Property & Other UK Unit Trusts Cavendish Japan Fund A Class 156.90 - 1.40 0.00 European Opportunities £ 3.85 - -0.01 0.24 American Fund USD Class $ 82.62 - 0.98 0.00
Money Ser. 4 524.30 551.90 0.00 - CAF UK Equitrack Inc Fd 73.30 73.30 0.96 3.20 Dragon Capital Group Hargreaves Lansdown Fd Mgrs (1100)F (UK)
Cavendish North American Fund B Class 193.20 - 2.30 0.60 Extra Income £ 0.27 - 0.00 3.43
c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam American Fund GBP Hedged £ 45.00 - 0.53 0.00 PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT
Prop. Ser. 4 1091.10 1148.50 -0.10 - CAF UK Equitrack Acc Fd 102.00 102.00 1.30 3.20
Cavendish North American Fund A Class 187.40 - 2.20 0.00 Fund information, dealing and administration: funds@dragoncapital.com Enquiries 0117 90090000
Extra Income - Gross £ 0.27 - 0.00 3.43 American Fund GBP Unhedged £ 52.95 - 0.62 -
Custodian Ser 5 474.50 499.40 0.70 - Aspect Capital Ltd (UK) FP CAF Alternative Strategies A Class Acc 111.39 - 0.08 0.41 Other International Funds www.hl.co.uk
Other International Funds Cavendish Technology Fund B Class 276.30 - 0.50 0.09 Global Dividend - Acc £ 1.56 - 0.01 3.30 Latin American Fund USD Class $ 13.35 - 0.15 0.00 Authorised Inv Funds
International Ser 5 425.80 448.20 1.80 - FP CAF Alternative Strategies A Class Inc 110.86 - 0.08 0.45 Vietnam Enterprise Inv. (VEIL) NAV $ 3.83 - 0.06 0.00
Aspect Diversified USD $ 396.59 - 9.56 0.00 Cavendish Technology Fund A Class 263.10 - 0.40 0.00 Global Dividend - Inc £ 1.40 - 0.01 3.45 Hargreaves Lansdown Funds
Managed Ser 5 1609.40 1694.10 4.80 - Vietnam Growth Fund (VGF) NAV $ 24.16 - 0.35 0.00 Latin American Fund GBP Unhedged £ 8.56 - 0.10 -
FP CAF Fixed Interest A class Acc 113.45 - -0.06 2.88 Unit Trust
Aspect Diversified EUR € 239.26 - 5.81 - Cavendish UK Balanced Income Fund B Class 144.10 - 1.20 5.09 Global Focus £ 13.53 - 0.08 0.00
Money Ser 5 513.30 540.30 0.00 - FP CAF Fixed Interest A class Inc 100.88 - 0.00 2.94 Vietnam Property Fund (VPF) NAV $ 0.79 - 0.02 0.00 HL Multi-Manager Special Situations Trust A Acc 270.37 284.59 0.96 0.39
Aspect Diversified GBP £ 121.83 - 2.94 0.00 Cavendish UK Balanced Income A Class 137.20 - 1.10 5.35 Global High Yield Fund - A Gross Acc £ 12.19 - 0.03 4.76
Property Ser 5 1048.60 1103.80 -0.10 - FP CAF Fixed Interest B class Acc 113.94 - -0.06 2.88 HL Multi-Manager Special Situations Trust M Acc 270.38 284.61 0.96 0.00
Aspect Diversified CHF SFr 114.56 - 2.78 0.00 Cavendish UK Select Fund B Class 159.50 - 1.70 1.75 Global High Yield Fund - A Gross Inc £ 10.31 - 0.03 5.21
Pension Funds HL Multi-Manager Income & Growth Trust A Acc 167.62 176.35 0.67 3.61
FP CAF Fixed Interest B class Inc 101.19 - 0.00 2.94 DSM Capital Partners Funds (LUX)
Aspect Diversified Trends USD $ 118.51 - -0.62 0.00 Cavendish UK Select Fund A Class 159.10 - 1.70 0.95 Global High Yield Fund - A Net Acc £ 11.78 - 0.03 4.79
American 1923.10 2024.30 15.80 - www.dsmsicav.com
FP CAF International Equity A Class Acc 142.71 - 0.59 0.70 HL Multi-Manager Income & Growth Trust M Acc 167.61 176.33 0.64 0.30
Aspect Diversified Trends EUR € 118.97 - -0.63 0.00 Regulated Global High Yield Fund - A Net Inc £ 10.30 - 0.03 5.21
Equity 5089.80 5357.60 40.50 -
FP CAF International Equity A Class Inc 138.95 - 0.57 0.70 HL Multi-Manager Income & Growth Trust A Inc 102.34 107.67 0.41 3.68
Aspect Diversified Trends GBP £ 122.89 - -0.65 0.00 Global Growth I2 Acc € 139.37 - 0.64 0.00
European 1185.30 1247.60 -2.60 - Cedar Rock Capital Limited (IRL) Global Property - Acc £ 1.47 - 0.01 1.31
FP CAF UK Equity A Class Acc 152.22 - 0.83 2.00 HL Multi-Manager Income & Growth Trust M Inc 102.32 107.65 0.39 0.30
Regulated Global Growth I1 Eur € 104.28 - 0.48 -
Fixed Int. 1613.40 1698.30 -4.90 - Global Property W Inc £ 1.21 - 0.00 2.97 Fleming Financial Trust Investment Fund Limited (NZ)
FP CAF UK Equity A Class Inc 139.92 - 0.77 2.03 Cedar Rock Capital Fd Plc $ 362.51 - 14.72 0.00 Incorporated in New Zealand, Reg No 5141841 HL Multi-Manager Balanced Managed Trust A Acc 185.32 194.91 0.60 0.94
International 943.10 992.80 4.50 - Atlantas Sicav (LUX) Global Special Sits £ 25.89 - 0.18 0.00
Registered address: Level 5, 3 City Road, Graftn, Auckland, 1010, New Zealand
FP CAF UK Equity B Class Acc 152.22 - 0.83 2.00 Cedar Rock Capital Fd Plc £ 365.54 - 18.35 0.00 HL Multi-Manager Balanced Managed Trust M Acc 185.32 194.91 0.60 0.00

Asset Management
Regulated
Japan 395.90 416.70 1.70 - Eclectica Asset Management (UK) Index Emerging Markets P-Acc £ 1.01 - 0.00 2.41 www.fftinvestmentfund.com

Asset Management Asset Management

American Dynamic $ 3533.75 - -100.72 0.00 FP CAF UK Equity B Class Inc 139.90 - 0.76 2.03 Cedar Rock Capital Fd Plc € 343.06 - 18.12 0.00 info@fftinvestmentfund.com HL Multi-Manager Equity & Bond Trust A Inc 110.35 115.98 0.30 2.03
40 Dukes Place, London EC3A 7NH
Managed 4341.20 4569.70 14.20 - Index Europe ex UK P-Acc £ 1.06 - 0.00 2.43
American One $ 3265.66 - -82.28 0.00 Order desk: 0845 6080941 Switchboard 0870 6072555 Other International Funds HL Multi-Manager Equity & Bond Trust M Inc 110.34 115.96 0.29 0.17
Property 2817.40 2965.70 -0.20 - Authorised Corporate Director - Capita Financial Managers Index Japan P-Acc £ 1.14 - 0.00 1.54 Fleming FT Investment Fund
Bond Global € 1388.26 - -23.53 0.00 HL Multi-Manager Equity & Bond Trust A Acc 148.12 155.67 0.41 2.01
Security 1476.30 1554.10 0.00 -
Charles Schwab Worldwide Funds Plc (IRL) Authorised Inv Funds
Index Pacific ex Japan P-Acc £ 1.07 - 0.00 3.70 Fleming Fund $ 3.83 3.93 0.01 -
Eurocroissance € 889.32 - -45.65 0.00 Regulated CF Eclectica Agriculture A EUR Acc ♦ € 1.55 - 0.01 0.00 HL Multi-Manager Equity & Bond Trust M Acc 148.11 155.65 0.39 0.17
Selective 2043.30 2150.80 5.10 - Index UK A-Acc £ 0.87 - 0.01 2.82
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.01 HL Multi-Manager Strategic Bond Trust A Acc 167.81 173.00 -0.13 1.49
Far East $ 702.90 - -30.34 0.00 CF Eclectica Agriculture A GBP Acc ♦ 108.71 - 0.25 0.00
Formerly Hill Samuel Life Assurance Ltd Index UK P-Acc £ 1.06 - 0.01 3.06 Foord Asset Mgt (Guernsey) Ltd (GSY)
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 CF Eclectica Agriculture A USD Acc ♦ $ 1.69 - 0.00 0.00 HL Multi-Manager Strategic Bond Trust M Acc 167.81 173.00 -0.12 0.13
Index US A-Acc £ 1.62 - 0.01 1.49 Regulated
Managed Ser A (Life) 1580.90 1673.00 2.90 - Chartered Asset Management Pte Ltd CF Eclectica Agriculture C EUR Acc ♦ € 1.60 - 0.01 0.30 Foord International Trust $ 35.41 - -0.22 0.00 HL Multi-Manager Strategic Bond Trust A Inc 140.73 145.08 -0.11 1.50
BLME Asset Management (LUX) Index US P-Acc £ 1.25 - 0.01 1.71
CCLA Investment Management Ltd (UK) Other International Funds HL Multi-Manager Strategic Bond Trust M Inc 140.73 145.08 -0.10 0.13
Managed Ser A (Pensions) 1055.30 1110.90 2.40 - BLME Sharia'a Umbrella Fund SICAV SIF CF Eclectica Agriculture C GBP Acc ♦ 112.65 - 0.26 0.37
Regulated Senator House 85 Queen Victoria Street London EC4V 4ET CAM-GTF Limited $ 300207.57 300207.57 -6292.90 0.00 Index World A-Acc £ 1.44 - 0.01 1.82
Formerly Target Life Assurance Ltd HL Multi Manager Emerging Markets A Acc 90.14 92.90 0.10 0.00
Authorised Inv Funds CF Eclectica Agriculture C USD Acc ♦ $ 1.74 - 0.00 0.37
100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603 Income Fund - Share Class A Acc $ 1139.37 - 0.07 0.00 CAM GTi Limited $ 710.47 - -29.78 0.00 Index World P-Acc £ 1.18 - 0.01 1.94 Franklin Templeton International Services Sarl (IRL)
The Public Sector Deposit Fund JPMorgan House - International Financial Services Centre,Dublin 1, Ireland HL Multi-Manager European A Acc 102.18 105.32 0.28 0.14
Managed (Life) 1602.00 1686.30 3.20 - Income Fund - Share Class B Acc $ 1159.46 - 0.08 0.00 Raffles-Asia Investment Company $ 1.82 1.82 -0.10 7.11 Japan £ 2.84 - 0.00 0.00
The Public Sector Deposit Fund-share class 1 ♦ F 100.00 - 0.00 0.50 Other International Funds HL Multi-Manager UK Growth A Acc 105.05 108.29 0.52 0.17
Managed Growth (Life) 511.10 538.00 1.60 - Income Fund - Share Class C Acc $ 1007.67 - 0.06 0.00 Japan Smaller Companies £ 2.00 - 0.00 0.00 Franklin Emerging Market Debt Opportunities Fund Plc
The Public Sector Deposit Fund-share class 2 ♦ F 100.00 - 0.00 0.30
Managed (Pensions) 6333.20 6666.60 15.40 - Franklin Emg Mkts Debt Opp CHFSFr 17.88 - -0.10 6.45
Income Fund - Share Class D Dis $ 997.35 - 0.07 1.22 The Public Sector Deposit Fund-share class 3 ♦ F 100.00 - 0.00 0.35 MoneyBuilder Asset Allocator £ 1.20 - 0.01 0.52
Managed Growth (Pensions) 625.50 658.40 2.50 - Income Fund - Share Class G Acc £ 1079.28 - 0.10 0.00
Franklin Emg Mkts Debt Opp EUR € 12.69 - -0.11 6.48 Haussmann
The Public Sector Deposit Fund-share class 4 ♦ F 100.00 - 0.00 0.40 MoneyBuilder Balanced £ 0.51 - 0.01 4.10
Other International Funds
additional fund prices can be found on our website Franklin Emg Mkts Debt Opp GBP £ 10.51 - -0.12 6.38
Income Fund - Share Class M Acc € 1014.75 - 0.02 0.00 The Public Sector Deposit Fund-share class 5 ♦ F 100.00 - 0.00 0.30 Money Builder Dividend £ 2.64 - 0.02 4.41 Haussmann Cls A $ 2840.93 - 12.13 0.00
Franklin Emg Mkts Debt Opp SGD S$ 23.09 - -0.08 6.26
Income Fund - Share Class W DisA$ 1033.01 - 0.35 - MoneyBuilder Growth £ 0.78 - 0.00 2.23 Haussmann Cls C € 2490.96 - 10.53 0.00
EdenTree Investment Management Ltd (UK)
Franklin Emg Mkts Debt Opp USD $ 17.92 - -0.06 6.25
Gl Sukuk Fund - Share Class A Acc $ 1236.47 - 0.90 0.00 PO Box 3733, Swindon, SN4 4BG, 0800 358 3010 MoneyBuilder Growth ISA £ 0.79 - 0.01 2.38 Haussmann Cls D SFr 1321.93 - 5.14 0.00
CCLA Investment Management Ltd (UK)
Authorised Inv Funds
Gl Sukuk Fund - Share class B Acc £ 1102.95 1102.95 0.80 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET Cheyne Capital Management (UK) LLP (IRL) MoneyBuilder Income £ 0.35 - 0.00 3.29
Regulated Amity UK Cls A Inc 219.10 - 2.30 1.39
Property & Other UK Unit Trusts MoneyBuilder Income -Gross £ 0.35 - 0.00 3.30 Frontier Capital (Bermuda) Limited
CBF Church of England Funds Cheyne Convertibles Absolute Return Fund € 1383.66 - 3.43 0.00 Amity UK Cls B Inc 218.90 - 2.30 2.18 Heartwood Wealth Management Limited (IRL)
Other International
Multi Asset Adventurous A-Acc £ 1.36 - 0.01 0.46 Regulated
Bank of America Cap Mgmt (Ireland) Ltd (IRL) Investment Inc 1382.18 1397.46 12.33 3.78 Cheyne European Real Estate Bond Fund € 111.04 - -0.37 0.00 Commercial Property-GBP Class £ 71.42 - -0.53 -
Higher Income Cls A Inc 127.10 - 0.70 4.78
Regulated Multi Asset Alloc Adventurous A-Acc £ 3.83 - 0.06 2.32 Heartwood Caut Multi Asset B Acc 141.41 - 0.11 0.00
Alceda Fund Management S.A. Investment Acc 2787.98 2818.82 24.86 - Cheyne Global Credit Fund € 120.70 - 0.11 0.00 Higher Income Cls B Inc 130.70 - 0.70 4.71 Global Real Estate-GBP C Class £ 45.26 - -0.50 -
www.alceda.lu Global Liquidity USD $ 1.00 - 0.00 0.26
Multi Asset Alloc Strategic A-Acc £ 1.19 - 0.01 0.28
Global Equity Inc 160.93 162.71 1.33 4.31 UK Equity Growth Cls A Inc 244.80 - 2.70 0.45
FCA Recognised
Multi Asset Alloc Def - Gross A £ 1.12 - 0.00 0.28 Henderson Global Investors (UK)
AC Opp - Aremus Fund EUR A € 111.93 - -0.59 0.00 Global Equity Acc 232.75 235.33 1.91 -
Cheyne Capital Management (UK) LLP UK Equity Growth Cls B Inc 250.20 - 2.80 1.20
PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
Barclays Investment Funds (CI) Ltd (JER)
Other International Funds
Multi Asset Alloc Def - Net A £ 1.12 - 0.00 0.25
AC Risk Parity 7 Fund EUR A € 119.94 - 0.04 0.00 UK Equity Inc 153.41 154.95 1.30 4.05 Amity Balanced For Charities A Inc 109.20 - 0.50 5.65 www.henderson.com
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800
Cheyne European Event Driven Fund € 136.15 - -5.20 0.00 Multi Asset Alloc Growth A £ 1.24 - 0.01 0.00 Authorised Inv Funds
AC Risk Parity 12 Fund EUR A € 144.05 - 0.10 0.00 FCA Recognised UK Equity Acc 224.47 226.73 1.90 - Amity European Fund Cls A Inc 201.90 - 0.00 1.25
Bond Funds Cheyne European High Yield Fund € 139.94 - 0.63 0.00 Multi Asset Defensive £ 1.23 - 0.01 0.36 Asia Pacific Capital Growth A Acc 703.30 - -4.40 0.88
AC Risk Parity 17 Fund EUR A € 89.76 - 0.12 0.00 Fixed Interest Inc 161.02 161.66 0.65 3.96 Amity European Fund Cls B Inc 204.10 - 0.00 2.12
Sterling Bond F £ 0.46 - 0.00 3.39 Multi Asset Defensive - Gross £ 1.23 - 0.00 0.35 Asian Dividend Income Inc 89.63 94.58 0.23 6.05
Fixed Interest Acc 483.50 485.44 1.95 - Cheyne Malacca Asia Equity Fund Class A $ 1417.41 - -11.52 0.00
ACQ Risk Parity Bond Fund EUR A € 97.29 97.29 -0.07 0.00 Amity Global Equity Inc for Charities A Inc 104.00 - 0.30 3.98
Cheyne Multi Strategy Liquid Fund $ 127.68 - -1.17 - Multi Asset Growth £ 1.40 - 0.01 0.34 Cautious Managed A Acc 242.60 - 1.50 3.19
Property Fund Inc 128.16 132.46 0.00 6.51 Amity International Cls A Inc 207.40 - 0.70 1.31 Fundsmith LLP (1200)F (UK)
Baring Fund Managers Ltd (1200)F (UK) Cheyne Real Estate Credit Holdings Fund £ 151.09 - 1.00 0.00 MultiManager Balanced £ 1.09 - 0.00 0.56 PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815 Cautious Managed A Inc 152.20 - 0.90 3.25
Property Fund Acc 229.46 237.15 0.00 - Amity International Cls B Inc 209.10 - 0.70 2.14
Dealing and Enquiries 020 7214 1004 www.fundsmith.co.uk, enquiries@fundsmith.co.uk
Cheyne Real Estate Debt Fund Class A1 £ 131.26 - -0.51 0.00 Multi Asset Open Growth A-Acc £ 0.47 - 0.00 0.78 China Opportunities A Acc 830.80 - -2.80 0.37
Fund Information: www.barings.com Amity Sterling Bond Fund A Inc 107.30 - 0.00 5.26 Authorised Inv Funds
Authorised Inv Funds Cheyne Total Return Credit Fund - December 2017 Class $ 204.00 - -0.36 0.00 Multi Asset Open Strategic A-Acc £ 1.24 - 0.00 1.33 Fundsmith Equity T Acc 213.01 - 1.82 1.13 Emerging Markets Opportunities A Acc 144.40 - 0.90 0.75
CCLA Fund Managers Ltd (UK) Amity Sterling Bond Fund B Inc 115.70 - 0.00 5.24
Dynamic Capital Growth Acc 668.70 706.00 3.40 1.24 Cheyne Total Return Credit Fund December 2019 $ 141.25 - -3.26 - Multi Asset Open Strategic A-Inc £ 0.30 - 0.00 2.31 Fundsmith Equity T Inc 201.17 - 1.72 1.14 European Growth A Acc 169.40 - 0.30 0.79
Senator House 85 Queen Victoria Street London EC4V 4ET
Dynamic Capital Growth Inc 270.30 285.30 1.40 1.25 Property & Other UK Unit Trusts Multi Asset Strategic £ 1.55 - 0.01 0.52 European Selected Opportunities A Acc 1311.00 - 2.00 0.67
COIF Charity Funds (UK) Edinburgh Partners Limited (IRL)
Eastern Acc GBP 654.90 - -2.30 0.00 Open World A-Acc £ 1.22 - 0.01 0.00 European Special Situations A Acc 94.66 - -0.29 1.05
Algebris Investments (IRL) Investment Inc 1246.05 1259.84 -5.57 3.62 Cohen & Steers SICAV (LUX) 27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 GAM Limited (2300)F (UK)
Regulated Eastern Inc GBP 642.70 - -2.20 0.00 Regulated Dealing - Fax only - +353 1 434 5230 Multi Asset Income A Gross Acc £ 1.57 - 0.00 3.70 GAM Sterling Management Limited Fixed Interest Monthly Income A Inc 22.09 23.17 0.02 5.57
Investment Acc 11875.19 12006.54 -53.04 -
Algebris Financial Credit Fund - Class I EUR € 131.51 - 0.04 0.00 Europe Select Inc GBP 2600.00 - -10.00 0.68 European Real Estate Securities € 23.0729 - 0.1164 1.18 FCA Recognised 12 St James's Place London SW1A 1NX. 0800 919 927
Multi Asset Income A Gross Inc £ 1.12 - 0.01 5.19 Global Care Growth A Inc 204.70 - 1.30 0.12
Ethical Invest Inc 192.52 194.65 -0.69 3.73 Edinburgh Partners Opportunities Fund PLC Internet: gam.com
Algebris Financial Income Fund - Class I EUR € 125.57 - 0.43 0.00 European Growth Inc 1060.00 1116.00 -5.00 1.43 Europ.RealEstate Sec. IX € 30.8891 - 0.1559 0.00 Multi Asset Income A Net Acc £ 1.49 - 0.00 3.72 Authorised Inv Funds Global Equity Income A Inc 50.16 - 0.40 3.84
Ethical Invest Acc 245.43 248.15 -0.88 - European Opportunities I EUR € 2.82 - 0.02 2.08
Algebris Financial Equity Fund - Class B EUR € 101.18 - 0.41 - German Growth Acc GBP 592.40 - -2.90 0.29 Gbl RealEstate Sec. I $ 10.8401 - 0.0342 1.23 Multi Asset Income A Net Inc £ 1.11 - 0.00 5.20 GAM Funds OEIC
Global Growth Fund 2072.59 2166.33 13.79 0.00
Global Equity Inc 148.50 150.14 -0.91 4.41 European Opportunities I GBP £ 1.98 - 0.00 2.31
Algebris Asset Allocation Fund - Class B EUR € 98.72 - 0.08 - Gbl RealEstate Sec. IX $ 12.8204 - 0.0405 0.00 GAM Global Diversified Acc 4001.47 - 11.28 0.00
German Growth Inc GBP 545.40 - -2.70 0.29 South East Asia £ 8.05 - -0.05 0.11 Global Technology A Acc 923.60 - 3.60 0.00
Global Equity Acc 218.08 220.49 -1.34 - European Opportunities I USD $ 3.13 - 0.02 1.84
GAM North American Gwth Acc 3306.06 - 11.42 0.00
Strategic Bond Inc 117.30 123.30 0.10 1.92 Special Situations £ 31.41 - 0.21 0.78 Multi-Manager Absolute Return A Acc 135.90 - -0.10 0.31
Fixed Interest Inc 133.18 133.72 0.91 4.14 European Opportunities A EUR € 2.76 - 0.02 1.45
Asset Management
GAM UK Diversified Acc 1913.77 - 10.57 1.04
Global Growth Inc 390.90 411.70 3.50 0.00 Strategic Bond £ 0.32 - 0.00 3.10 Multi-Manager Active A Acc ▲ 177.30 - 1.10 0.00
Japan Growth Acc 139.00 146.50 0.10 0.26
Fixed Interest Acc

Property Inc
755.85 758.88 5.20

111.62 115.36 1.36 5.79

- Global Opportunities I USD

Global Opportunities I GBP

$

£
1.77

1.13
-

-
0.02 1.96

0.01 1.90
Strategic Bond Gross £ 0.32 - 0.00 3.10 Multi-Manager Distribution A Inc Asset Manageme 129.40 - 0.20 3.30
Korea Acc 277.50 294.00 -9.70 0.00 Target 2015 £ 0.50 - 0.00 0.27 GAM Limited (IRL) Multi-Manager Diversified A Acc 78.59 - 0.00 2.65
Property Acc 243.40 251.56 2.97 - Global Opportunities I EUR € 1.60 - 0.01 1.92 FCA Recognised
Multi Asset A Acc ... C 159.70 - 0.70 1.46 Target 2015 - Gross £ 0.50 - 0.00 0.30 Multi-Manager Global Select Acc 183.50 - 0.40 0.00
Local Authorities Property Fd (LAMIT) (UK) Global Opportunities A GBP £ 1.06 - 0.00 1.44 GAM Fund Management Ltd
Multi Asset A Inc ... C 152.80 - 0.60 1.48 Property 274.76 295.14 2.73 4.81 Target 2020 £ 0.57 - 0.00 0.50 Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927 Multi-Manager Income & Growth A Acc 153.60 - 0.10 2.16
Pan European Opportunities I EUR € 1.73 - 0.02 -
Allianz Global Investors GmbH(1200) F (LUX) Comgest SA (FRA) GAM Star Fund Plc
UK Growth Inc 252.00 266.50 2.50 1.49 Target 2025 £ 1.34 - 0.01 0.28 Multi-Manager Income & Growth A Inc 142.70 - 0.10 2.18
FCA Recognised 17 square Edouard VII - 75009 Paris
GAM Star Asia-Pacific Eqty USD Acc F $ 12.63 - 0.02 0.70
Charity Fund FCA Recognised Target 2030 £ 1.44 - 0.01 0.25 Multi-Manager Managed A Acc 232.10 - 1.40 0.41
Allianz Best Styles Global Equity £ 107.63 107.63 0.64 -
0800 032 6347 (charity enquiries) CG Asset Management Limited (IRL) GAM Star Asian Eqty USD Ord Acc F $ 14.23 - 0.08 0.00
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Comgest Magellan € 21.39 - 0.28 0.00 UK Select £ 2.51 - 0.03 0.87 Multi-Manager Managed A Inc 227.90 - 1.40 0.41
Allianz Global Fundamental Strategy £ 105.20 105.20 0.35 -
Targeted Return Fund Acc 147.70 148.50 1.10 3.12 GAM Star Balanced GBP Acc £ 10.61 - 0.04 0.00
00 353 1 434 5098
Allianz Global Small Cap Equity £ 112.49 112.49 0.14 - UK Growth £ 3.71 - 0.06 0.00 Sterling Bond Acc 195.33 204.09 -0.14 2.89
Targeted Return Fund Inc 114.70 115.40 0.80 3.19 FCA Recognised GAM Star Cap.Appr.US Eqty USD Inc F $ 18.51 - 0.09 0.00
Capital Gearing Portfolio Fund Plc £ 26483.73 26483.73 35.30 0.63 Comgest AM International Ltd (IRL) UK Smaller Companies £ 2.12 - 0.01 0.19 Sterling Bond Inc 60.91 63.63 -0.04 2.93
46 St Stephen's Green, Dublin 2, Ireland GAM Star Cat Bond USD Acc $ 12.42 - 0.01 0.00
CG Portfolio Fund Plc WealthBuilder A Acc £ 1.04 - 0.01 0.62 Strategic Bond A Inc 127.10 - 0.00 5.51
Amundi Funds (LUX)
Baring International Fd Mgrs (Ireland) (IRL) FCA Recognised GAM Star Cautious GBP Acc £ 10.57 - -0.05 0.00
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 Real Return Cls A £ 166.34 166.34 1.49 2.41 Fidelity PathFinder
Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 Comgest Gth Asia Pac ex Jap DIS F $ 8.15 - 0.06 0.11 EFG Hermes UK & Irish Smaller Companies A Acc 565.10 - 4.50 0.00
www.amundi-funds.com DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Fidelity PathFinder Foundation 1 Gross Acc (clean) £ 1.10 - 0.00 - GAM Star China Equity USD Acc F $ 24.12 - 0.15 0.40
FCA Recognised Dollar Fund Cls D £ 128.82 128.82 0.83 1.64 UK Absolute Return A Acc 148.10 - 0.50 0.00
FCA Recognised Comgest Gth Emerging Mkt DIS F $ 32.90 - 0.34 0.39 Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
ASEAN Frontiers A GBP Inc £ 109.98 - -0.59 0.56 Fidelity PathFinder Foundation 1 Acc (clean) £ 1.09 - 0.00 - GAM Star Cont European Eqty GBP Acc F £ 3.50 - -0.01 0.00
Bd. Euro Corporate AE Class - R - EUR € 18.61 - -0.02 0.00 Capital Value Fund Cls V £ 129.10 129.10 0.16 0.27 Comgest Gth Europe DIS F € 21.17 - 0.22 0.00 Other International Funds UK Alpha A Acc ♦ 117.20 - 1.20 0.97
Asia Growth A GBP Inc H £ 44.51 - -0.11 0.00 Fidelity PathFinder Foundation 2 Acc (clean) £ 1.10 - 0.00 - GAM Star Cred Opportunities GBP Acc £ 12.33 - 0.00 4.05
Bd. Global AU Class - R - USD $ 25.84 - -0.02 0.00 The EFG-Hermes Egypt Fund $ 29.93 - - 0.00 UK Equity Income & Growth A Inc 625.00 - 5.20 3.51
Comgest Gth GEM PC DIS F € 13.01 - 0.15 0.14
Australia A GBP Inc £ 67.71 - 0.00 1.97 Fidelity PathFinder Foundation 3 Acc (clean) £ 1.10 - 0.00 - GAM Star Defensive GBP Acc £ 11.01 - 0.01 0.00
Eq. Emerging Europe AE Class - R - EUR € 26.83 - -0.24 0.00 Middle East & Developing Africa Fund (Final) $ 19.81 - - 0.00 UK Index A Acc 512.80 - 6.70 2.50
Baring China Bond Fund $ 10.32 - -0.01 0.00 Fidelity PathFinder Foundation 4 Acc (clean) £ 1.12 - 0.01 - GAM Star Discretionary FX USD Acc F $ 12.89 - -0.01 0.00
Eq. Emerging World AU Class - R - USD $ 87.62 - 0.80 0.00 Saudi Arabia Equity Fund SR 16.40 - 0.08 0.00 UK Property A Acc 193.08 203.24 0.05 4.04
Baring Emerging Markets Corporate Debt Fund $ 9.49 - 0.00 0.00 Consistent Unit Tst Mgt Co Ltd (1200)F (UK) Fidelity PathFinder Foundation 5 Acc (clean) £ 1.20 - 0.01 - GAM Star Dynamic Gbl Bd USD Acc H $ 10.10 - 0.01 1.51
Eq. Greater China AU Class - R - USD $ 602.19 - 0.87 0.00
Asset Management PO BOX 10117, Chelmsford, Essex, CM1 9JB UK Property A Inc 97.68 102.81 0.03 4.16

Asset Management Asset Management

Baring European Opportunities Fund Class A EUR Acc € 14.08 - 0.20 0.00 Fidelity PathFinder Focussed 1 Gross Acc (clean) £ 1.11 - 0.00 - GAM Star Emerg. Market Rates USD Acc F $ 11.47 - 0.00 0.00
Dealing & Client Services 0845 0264281 UK Tracker A Acc 230.90 - 3.50 2.23
Eq. Latin America AU Class - R - USD $ 380.70 - 6.14 0.00
Authorised Inv Funds Electric & General (1000)F (UK)
Baring Global Mining Fund - Class A GBP Inc £ 4.21 - 0.06 0.48 Fidelity PathFinder Focussed 1 Acc (clean) £ 1.11 - 0.01 - GAM Star European Eqty USD Acc F $ 23.85 - 0.08 0.00
Stuart House St.John's Street Peterborough PE1 5DD US Growth A Acc 789.40 - 3.80 0.00
Gl. Macro Bds & Curr Low Vol AHG - GBP £ 99.09 - -0.01 0.00 Consistent UT Inc 57.54 58.21 0.65 4.50
Dynamic Emerging Markets A GBP Acc F £ 9.33 - 0.02 0.00 Orders & Enquiries: 0845 850 0255 Fidelity PathFinder Focused 2 Acc (Clean) £ 1.13 - 0.01 - GAM Star Flexible Gbl Port GBP Ac £ 12.88 - 0.04 0.00
Canada Life Investments (UK)
1-6 Lombard St, London, EC3V 9JU, Dealing: 0845 606 6180 Consistent UT Acc 130.30 131.82 1.48 4.36 Authorised Inv Funds
Eastern Europe A GBP Inc £ 41.37 - 0.17 1.70 Fidelity PathFinder Focussed 3 Acc (clean) £ 1.14 - 0.01 - GAM Star GAMCO US Equity Acc F $ 13.81 - 0.12 0.00
Authorised Inv Funds Authorised Corporate Director - Carvetian Capital Management
The Antares European Fund Limited Practical Investment Inc 210.85 215.61 0.60 3.75 GAM Star Global Rates USD Acc F $ 12.80 - -0.17 0.00
Emerging Mkt Debt LC A GBP Hedged Inc £ 7.87 - -0.03 6.51 Electric&General Net Income A 144.30 - 0.50 2.05 Fidelity PathFinder Focussed 4 Acc (clean) £ 1.16 - 0.01 -
Other International Asia Pacific B Acc 839.98 - -7.48 0.85
Practical Investment Acc 1004.33 1027.01 2.88 3.65 GAM Star Global Selector USD Acc F $ 14.26 - 0.06 0.00
Emerging Opportunities A GBP Inc H £ 18.71 - 0.11 0.00 Fidelity PathFinder Focussed 5 Acc (clean) £ 1.17 - 0.01 -
AEF Ltd Usd (Est) $ 664.25 - -5.26 - Balanced B Acc 147.72 - 0.50 0.92
Glb Emerging Markets A GBP Inc H £ 19.01 - 0.10 0.00 Fidelity PathFinder Freedom 1 Gross Acc (clean) £ 1.08 - 0.00 - GAM Star Japan Eqty USD Acc F $ 13.68 - -0.11 0.34
AEF Ltd Eur (Est) € 666.78 - -5.59 0.00 Corporate Bond B Inc 207.69 - -0.25 4.12 Ennismore Smaller Cos Plc (IRL)
Glb Resources A GBP Inc H £ 11.54 - 0.18 0.33 5 Kensington Church St, London W8 4LD 020 7368 4220 Fidelity PathFinder Freedom 2 Acc (clean) £ 1.08 - 0.00 - GAM Star Keynes Quant Strat USD Acc F $ 12.45 - 0.01 0.00
European B Acc 253.96 - -1.07 0.00
FCA Recognised GAM Star Local EM Rates and FX USD Acc $ 11.36 - 0.06 0.00
High Yield Bond A GBP Hedged Inc H £ 6.70 - 0.01 6.71 Fidelity PathFinder Freedom 1 Acc (clean) £ 1.08 - 0.01 - Hermes Investment Funds Plc (IRL)
Arisaig Partners Global Bond B Inc 90.53 - -0.19 2.81 Ennismore European Smlr Cos NAV £ 94.58 - -0.37 0.00
Fidelity PathFinder Freedom 3 Acc (clean) £ 1.07 - 0.00 - GAM Star North of South EM Equity Acc F $ 10.66 - 0.01 0.02 Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
Other International Funds Hong Kong China A GBP Inc £ 597.55 - -4.06 0.51
Global Equity B Acc 594.24 - 3.51 1.67 Ennismore European Smlr Cos NAV € 134.19 - 0.17 0.00 FCA Recognised
Arisaig Africa Consumer Fund Limited $ 15.24 - -0.14 0.00 India Fund - Class A GBP Inc £ 14.98 - 0.01 0.00 Fidelity PathFinder Freedom 4 Acc (clean) £ 1.08 - 0.01 - GAM Star Technology USD Acc F $ 16.59 - 0.00 0.00
Global Equity Income B Inc 123.38 - 0.61 4.16 Hermes Abs Return Credit Fund Class F Acc £ £ 0.98 0.98 0.00 -
Arisaig Asia Consumer Fund Limited $ 65.35 - 0.52 0.00 Latin America A USD Inc H $ 30.50 - -0.10 0.18 Fidelity PathFinder Freedom 5 Acc (clean) £ 1.14 - 0.01 - GAM Star US All Cap Eqty USD Acc F $ 14.24 - 0.14 0.00
Global High Yield Bond B Inc 99.10 - 0.21 4.70 Crèdit Andorrà Asset Management (LUX) Hermes Abs Return Credit Fund Class R Acc € € 1.99 1.99 0.00 -
Arisaig Global Emerging Markets Consumer Fund $ 10.67 - 0.10 0.00 MENA A GBP Inc F * £ 13.70 - 0.05 0.57
Ennismore European Smlr Cos Hedge Fd Fidelity PathFinder Income 1 Income (clean) £ 1.04 - 0.00 3.80 GAM Star Worldwide Eqty USD Acc F $ 3471.49 - -12.59 0.34
Global Infrastructure B Acc 113.12 - 0.45 1.31 www.creditandorra.com Hermes Active UK Inflation Fund Class F Acc £ 1.28 1.28 0.00 0.00
Other International Funds
Arisaig Global Emerging Markets Consumer UCITS € 12.45 - 0.10 0.00 FCA Recognised Fidelity PathFinder Income 1 Gross Income (clean) £ 1.05 - 0.01 4.64
Global Resource B Acc 79.24 - 1.40 0.12 NAV € 479.06 - 11.54 0.00 Hermes Asia Ex-Japan Equity Fund Class F Acc £ 1.49 1.49 0.01 0.00
Crediinvest SICAV Money Market Eur I € 11.21 - 0.00 0.00
Arisaig Global Emerging Markets Consumer UCITS STG £ 11.27 - 0.04 0.00 Fidelity PathFinder Income 2 Income (clean) £ 1.05 - 0.01 3.60 GYS Investment Management Ltd (GSY)
Baring International Fd Mgrs (Ireland) (IRL) Japan B Acc 52.26 - 0.06 0.63 Hermes Asia Ex-Japan Equity Fund Class R Acc € 3.38 3.38 0.03 0.00
Crediinvest SICAV Money Market Usd A $ 10.02 - 0.00 0.00 Regulated
Arisaig Latin America Consumer Fund $ 22.15 - 0.32 0.00 Regulated Fidelity PathFinder Income 2 gross £ 1.05 - 0.00 4.55
Portfolio III B Acc 107.31 - 0.21 2.03 Equinox Fund Mgmt (Guernsey) Limited (GSY) Hermes Global Emerging Markets Fund Class F Acc £ 1.18 1.18 0.00 0.00
China A-Share A GBP Inc £ 5.70 - 0.14 0.00 Crediinvest SICAV Fixed Income Eur € 10.84 - 0.00 0.00 Taurus Emerging Fund Ltd $ 193.13 197.08 -16.66 0.00
Regulated Fidelity PathFinder Income 2 Gross Income (clean) £ 1.05 - 0.01 4.50
Portfolio IV B Acc 109.59 - 0.25 2.21 Hermes Global Emerging Markets Fund Class R Acc € 3.11 3.11 0.02 0.00
Crediinvest SICAV Fixed Income Usd $ 10.56 - 0.00 0.00
Equinox Russian Opportunities Fund Limited $ 110.61 113.68 -3.97 0.00 Fidelity PathFinder Income 3 Income (clean) £ 1.05 - 0.00 4.12
Portfolio V B Acc 109.57 - 0.30 1.34 Hermes Global Equity Fund Class F Acc £ 1.52 1.52 0.01 0.00
Crediinvest SICAV Spanish Value € 278.77 - 1.39 0.00
Barings (Luxembourg) (LUX) Institutional OEIC Funds Generali International Limited
Portfolio VI B Acc 109.27 - 0.24 1.43 PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108 Hermes Global Equity Fund Class R Acc € 4.16 4.16 0.06 0.00
FCA Recognised Crediinvest SICAV International Value € 240.81 - 1.76 0.00 America £ 3.97 - 0.04 0.41
Russia A GBP Inc F £ 24.90 - 0.34 0.00 Portfolio VII B Acc 106.72 - 0.22 1.14 Euronova Asset Management UK LLP (CYM) International Insurances Hermes Global ESG Equity Fund Class F Acc £ 1.17 1.17 0.01 0.00
Crediinvest SICAV Big Cap Value € 18.62 - 0.14 0.00 Emerging Markets £ 3.14 - 0.00 0.51
Regulated Global Multi-Strategy Managed $ 4.98 5.36 -0.01 0.00
North American B Acc 806.97 - 9.57 1.04 Hermes Global High Yield Bond Fund Class F Acc £ 1.06 1.06 0.00 0.00

Strategic Return B Acc 101.80 - 0.27 0.00

Crediinvest SICAV US American Value $ 18.69

Crediinvest SICAV Sustainability € 16.04

-

-
0.10 0.00

0.15 0.00
Smaller Cos Cls One Shares (Est) € 35.42 - -0.15 0.00 Europe

Fidelity Pre-Retirement Bond Fund £ 115.70

£ 4.18 -

-
0.00 2.38

-0.20 1.60
UK Multi-Strategy Managed £ 4.99Asset Management
5.37 0.00 0.00
Hermes Global High Yield Bond Fund Class R Acc € 2.87 2.87 0.01 0.00
Artemis Fund Managers Ltd (1200)F (UK) Barmac Asset Management Ltd (UK) Smaller Cos Cls Two Shares (Est) € 24.78 - -0.10 0.00
EU Multi-Strategy Managed € 3.13 3.38 -0.01 0.00
57 St. James's Street, London SW1A 1LD 0800 092 2051 40 Dukes Place, London, EC3A 7NH Total Return B Acc 105.09 - 0.30 2.87 Hermes Global Small Cap Fund Class F Acc £ £ 0.99 0.99 0.01 -
Smaller Cos Cls Three Shares (Est) € 12.47 - -0.05 - Global Focus £ 2.88 - 0.02 0.52
Authorised Inv Funds Authorised Corporate Director - Capita Financial Managers Global Bond USD $ 3.51 3.78 0.01 0.00
UK Equity B Inc 113.65 - 0.75 1.46 Hermes Global Small Cap Fund Class R Acc € € 2.03 2.03 0.03 -
Dealing: 0845 922 0044 DAVIS Funds SICAV (LUX) Smaller Cos Cls Four Shares (Est) € 16.03 - -0.06 0.00 Index Linked Bond £ 2.62 - 0.01 0.66
Artemis Capital R ACC 1287.17 1360.46 9.18 1.24
Authorised Inv Funds UK Equity & Bond Income B Inc 240.49 - 1.44 4.43 Regulated Hermes Multi Asset Inflation Fund Class F GBP Acc £ 1.02 1.02 0.01 -
Index Linked Bond Gross £ 3.16 - 0.01 0.66
Artemis European Growth R Acc 247.94 261.87 -1.56 1.17
Retail Accumulation 2 116.33 - 0.23 0.00 UK Equity Income B Inc 430.01 - 3.40 4.24 Davis Value A $ 42.19 - 0.22 0.00 Genesis Asset Managers LLP Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.04 1.04 0.00 0.00
Index-Linked Bond Fund Gross Inc £ 12.33 - 0.02 0.66
Artemis European Opps R Acc 75.53 79.70 -0.22 0.84 Other International Funds
Retail Income 2 114.95 - 0.23 0.00 UK Government Bond B Inc 46.83 - -0.03 2.16 Davis Global A $ 29.51 - 0.03 0.00 Hermes Sourcecap EU Alpha Fund Class F Acc £ 1.32 1.32 0.00 0.00
Japan £ 2.08 - 0.02 0.71 Emerging Mkts NAV £ 5.37 - 0.04 0.00
Artemis Global Emg Mkts I GBP Acc 85.33 - 0.30 -
The Castleton Growth Fund Ret Acc X F 112.68 - 0.22 0.00 Hermes Sourcecap EU Alpha Fund Class F Dis £ 1.28 1.28 0.00 1.32
Long Bond £ 0.49 - 0.00 2.93
Artemis Global Emg Mkts I GBP Dist 85.33 - 0.30 -
The Castleton Growth Fund Ret Inc X F 113.14 - 0.22 0.00 Hermes Sourcecap EU Alpha Fund Class R Acc € 3.34 3.34 0.03 0.00
Capita Asset Services (UK) Discretionary Unit Fund Mngrs (1000)F (UK) Long Bond Gross £ 0.80 - 0.00 2.87
Artemis Global Energy R Acc 24.36 25.82 0.65 0.00 Guardian (UK)
40 Dukes Place, London EC3A 7NH 1 Poultry, London EC2R 8JR 020 7 415 4130 Hermes Sourcecap EX UK Fund Class F Acc £ 1.36 1.36 -0.01 0.00
Order Desk 08459 220044 Switchboard 0870 607 2555 Long Bond Fund Gross Inc £ 10.98 - -0.01 2.92 Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151
Artemis Global Growth R Acc 186.14 196.44 0.83 0.80 Authorised Inv Funds
Insurances Hermes Sourcecap EX UK Fund Class R Acc € 3.35 3.35 0.02 0.00
BlackRock (JER) Authorised Inv Funds Disc Inc 1580.10 1628.90 -4.00 0.00 Eurobank Fund Management Company (Luxembourg) S.A. Pacific (Ex Japan) £ 3.59 - 0.01 1.90
Artemis Global Income R Acc 96.33 101.74 0.73 3.83 Guardian Assurance
Regulated CF Heartwood Cautious B Acc X 129.16 - 0.07 0.35 Regulated Hermes UK Small & Mid Cap Fund Class F Acc £ 1.63 1.63 0.00 0.00
Do Accum 5928.20 6111.60 -15.10 0.00 Pan European £ 2.72 - 0.02 2.02
Artemis Global Income R Inc 79.65 84.13 0.60 3.95 BlackRock UK Property £ 40.25 - 0.00 3.62 (LF) Absolute Return € 1.30 - 0.00 0.00 Equity S-GH Class B £ 12.91 - 0.17 -
CF Heartwood Cautious Income B Inc X 112.47 - 0.08 2.15 Hermes UK Small & Mid Cap Fund Class R Acc € 5.12 5.12 0.06 0.00
Reduced Duration UK Corporate Bond £ 10.62 - -0.02 3.15
Artemis Global select R Acc 71.96 75.95 0.24 0.00 Blackrock UK Long Lease £ 1055.99 - 5.83 0.00 (LF) Balanced - Active Fund (RON)RON 16.84 - 0.03 0.00 Managed Fund Bond £ 23.46 24.44 0.04 -
CF Heartwood Growth B Acc X 147.14 - 0.53 0.65 Hermes US All Cap Equity Class F Stg £ Acc £ 0.99 0.99 0.01 -
Reduced Duration UK Corporate Bond Gross £ 10.78 - -0.02 3.15
Artemis High Income R Inc 80.50 85.69 0.11 5.75 BLK Intl Gold & General $ 3.96 4.18 0.09 0.00 (LF) Cash Fund € € 1.31 - 0.01 0.00 Choices Wth-Pfts Lg-tm 319.20 336.00 0.00 -
CF Heartwood Balanced Income B Inc X 115.71 - 0.21 2.58 Hermes US All Cap Equity Class R € Acc € 2.02 2.02 0.04 -
Reduced Duration UK Corporate Bond Inc £ 10.05 - -0.02 3.17
Artemis Income R Inc 212.07 224.75 2.21 4.33 (LF) Cash Fund (RON) RON 15.60 - 0.00 0.00 Choices Wth-Pfts St-tm 270.50 284.80 0.00 -
CF Heartwood Balanced B Acc X 127.53 - 0.28 0.51 Hermes US SMID Equity Fund Class F Acc £ 1.61 1.61 0.02 0.00
Reduced Duration UK Corp Bond Gross Inc £ 10.06 - -0.02 3.17
Artemis Income R Acc 355.38 376.62 3.71 4.21 (LF) Eq Emerging Europe € 0.78 - 0.01 0.00 Choices Managed 620.82 653.50 1.21 -
CF Heartwood Defensive Multi Asset Fund B Accumulation 110.25 - -0.02 0.01 Hermes US SMID Equity Fund Class R Acc € 3.59 3.59 0.06 0.00
Select Emerging Markets Equities £ 1.20 - 0.00 0.97
Artemis Monthly Dist R Inc 63.09 66.94 0.19 4.73 (LF) Eq Flexi Style Greece € 0.94 - -0.05 - Choices Equity 701.81 738.74 2.53 -
CF JM Finn Gbl Opps A Acc ♦ 272.30 - 0.62 1.68
Select European Eqts £ 1.73 - 0.01 1.88
Artemis Pan-Euro Abs Ret GBP 108.83 - 0.45 - (LF) Global Bond Fd € 12.14 - -0.01 0.00 Freedom With Pfts Long-Tm 219.10 230.60 0.00 -
CF Richmond Core X 192.80 - 1.48 0.00 Hermes Property Unit Trust (UK)
Select Global Equities £ 3.05 - 0.02 0.96
Artemis Strategic Assets R Acc 76.95 81.55 0.61 0.00 (LF) Global Equities € 1.22 - 0.00 0.00 Freedom With Pfts Short-Tm 197.10 207.40 0.00 -
CF Seneca Diversified Growth A ACC 221.19 - 0.47 1.30 Property & Other UK Unit Trusts
South East Asia £ 3.59 - -0.01 0.69
Artemis Strategic Bond R M Acc 84.17 89.37 -0.01 4.02 (LF) Eq Mena Fund € 15.09 - 0.06 0.00 Freedom Managed 360.91 379.90 0.63 - Property £ 5.55 5.91 0.06 3.16
CF Seneca Diversified Growth B ACC 130.59 - 0.28 2.25
Sterling Core Plus Bond Gr Accum £ 2.02 - 0.00 3.73
Artemis Strategic Bond R M Inc 54.88 58.27 0.00 4.09 (LF) Greek Government Bond € 15.51 - 0.11 0.00 Freedom Equity 408.75 430.26 1.18 -
CF Seneca Diversified Growth N ACC 129.41 - 0.28 1.94
Sterling Core Plus Bond Inc £ 1.32 - 0.00 3.86
Artemis Strategic Bond R Q Acc 84.25 89.46 -0.02 4.03 (LF) Income Plus $ $ 1.22 - 0.00 0.00 Corp Pens Mananged 219.16 219.16 0.42 -
 26
Fund Bid Offer +/- Yield
Hermes UK Residential Real Estate (UK)
Property & Other UK Unit Trusts
VISTA UK Residential Real Estate £ 1.02 1.06 0.03 - Global Gold & Resources Fund
Himalayan Fund N.V. (NL)
www.himalayanfund.nl
+31 (0)20 6411161
Other International Funds
Himalayan Fund N.V. $ 53.49 - -1.18 0.00
Impax Asset Management (IRL)
Norfolk House, 31 St James's Square, London, SW1Y 4JR
FCA Recognised
Env Mkts (Ire) Stl A £ 2.19 - 0.02 0.00
Env Mkts (Ire) Euro A € 2.13 - 0.03 0.00
Env Mkts (Ire) USD A $ 1.79 - 0.02 0.00
INDIA VALUE INVESTMENTS LIMITED (INVIL)
www.invil.mu
Other International Funds
NAV £ 7.71 - 0.05 0.00
Intrinsic Value Investors (IVI) LLP (IRL)
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
FCA Recognised
IVI European Fund EUR € 18.74 - 0.17 0.00
IVI European Fund GBP £ 17.91 - 0.06 1.03
Invesco Fund Managers Ltd (UK)
Perptual Park, Henley-On-Thames, Oxon, RG9 1HH
Dealing: 0800 085 8571
Investor Services: 0800 085 8677
www.invescoperpetual.co.uk
Authorised Inv Funds
INVESCO PERPETUAL Funds
Asian Acc ♦ F 437.82 - -0.37 0.84
Asian Inc ♦ F 393.24 - -0.33 0.85
Asian Equity Income Acc ♦ F 59.44 - 0.02 4.17
Asian Equity Income Inc ♦ F 50.64 - 0.01 4.28
Balanced Risk 6 Acc 53.04 - 0.07 0.00
Balanced Risk 8 Acc 54.80 - 0.10 0.00
Balanced Risk 10 Acc 56.49 - 0.13 0.12
Childrens Acc ♦ F 419.88 - 4.55 1.69
set Management
Corporate Bd Acc (Gross) ♦ F 205.95 - -0.11 3.63
Corporate Bd Inc (Gross) ♦ F 89.10 - -0.05 3.73
Corporate Bond Acc ♦ F 183.71 - -0.09 3.65
Corporate Bond Inc ♦ F 88.90 - -0.05 3.73
Distribution Acc ♦ F 110.66 - 0.34 4.24
Distribution Acc (Gross) ♦ F 126.33 - 0.39 4.21
Distribution Inc ♦ F 65.27 - 0.20 4.31
Distribution Inc (Gross) ♦ F 65.31 - 0.21 4.31
Emerging European Acc ♦ F 35.22 - 0.25 2.91
Emerging European Inc ♦ F 32.95 - 0.23 2.98
European Equity Acc ♦ F 868.41 - -2.54 2.22
European Equity Inc ♦ F 734.73 - -2.15 2.27
European Equity Income Acc ♦ F 75.78 - 0.10 3.45
European Equity Income Inc ♦ F 58.66 - 0.08 3.53
European High Income Acc ♦ F 80.51 - -0.08 3.38
European High Income Inc ♦ F 59.01 - -0.06 3.43
European Opportunities Inc ♦ F 85.71 - -0.46 0.17
European Opportunities Acc ♦ F 87.76 - -0.48 0.17
European Smlr Cos Acc ♦ F 188.79 - -0.86 0.00
Global Bd Acc (Gross) ♦ F 127.47 - 0.05 1.20
Global Bd Inc (Gross) ♦ F 78.96 - 0.03 1.21
Global Bond Acc ♦ F 119.87 - 0.05 1.20
Global Bond Inc ♦ F 78.89 - 0.03 1.21
Glbl Distribution Acc 54.02 - 0.16 4.19
Glbl Distribution Acc (Gross) 54.58 - 0.16 4.19
Glbl Distribution Inc 51.91 - 0.15 4.20
Glbl Distribution Inc (Gross) 51.93 - 0.15 4.20
Global Emerging Markets Acc ♦ F 242.38 - 1.04 0.51
Global Emerging Markets Inc ♦ F 220.51 - 0.95 0.52
Global Equity (acc) ♦ F 484.36 - 4.15 0.48
Global Equity (inc) ♦ F 441.78 - 3.79 0.49
Global Equity Income Acc ♦ F 123.01 - 0.98 3.25
Global Equity Income Inc ♦ F 102.54 - 0.82 3.33
Gbl Financial Capital Acc 89.55 - 0.11 4.35
Gbl Financial Capital Inc 76.90 - 0.10 4.48
Gbl Financial Cap Acc Gross 93.35 - 0.11 4.86
Gbl Financial Cap Inc Gross 77.17 - 0.10 5.04
Global Opportunities Acc ♦ F 97.95 - 1.28 0.46
Global Smaller Cos Acc ♦ F 1711.86 - 9.40 0.00
Global Smaller Cos Inc ♦ F 1637.55 - 8.99 0.00
Global Targeted Rets Acc 56.17 - -0.02 0.30
High Income Acc ♦ F 825.51 - 3.06 3.50
High Income Inc ♦ F 455.38 - 1.69 3.59
High Yield Fund Acc 108.73 - 0.00 4.61
High Yield Fund Acc (Gross) 126.47 - 0.01 4.58
High Yield Fund Inc 43.97 - 0.00 4.72
High Yield Fund Inc (Gross) 44.11 - 0.00 4.72
Hong Kong & China Acc ♦ F 475.13 - 1.55 0.69
Income & Growth Acc ♦ F 975.41 - 8.03 3.68
Income & Growth Inc ♦ F 423.18 - 3.48 3.78
Income Acc ♦ F 3189.24 - 10.01 3.27
Income Inc ♦ F 1801.27 - 5.65 3.35
Japan Acc ♦ F 320.21 - 4.64 0.30
Japanese Smlr Cos Acc ♦ F 64.66 - -0.05 0.00
Latin America Acc ♦ F 112.44 - 1.50 1.33
Latin America Inc ♦ F 94.57 - 1.26 1.34
Managed Growth Acc ♦ F 164.16 - 0.90 0.70
Managed Growth Inc ♦ F 136.67 - 0.75 0.70
Managed Income Acc ♦ F 161.71 - 0.67 3.12
Managed Income Inc ♦ F 99.86 - 0.41 3.18
Money Acc ♦ F 90.11 - 0.00 0.22
Money Acc (Gross) ♦ F 95.22 - 0.00 0.22
Monthly Income Plus Acc ♦ F 300.01 - 0.35 4.65
Monthly Income Plus Acc (Gross) ♦ F 351.71 - 0.42 4.62
Monthly Income Plus Inc ♦ F 112.04 - 0.13 4.75
Monthly Income Plus Inc (Gross) ♦ F 112.24 - 0.13 4.74
Pacific Acc ♦ F 985.25 - 6.07 0.36
Pacific Inc ♦ F 904.94 - 5.58 0.36
Tactical Bond Acc ♦ F 69.21 - 0.05 0.96
Tactical Bond Inc ♦ F 60.24 - 0.05 0.96
Tactical Bond Acc (Gross) ♦ F 71.75 - 0.05 0.96
Tactical Bond Inc (Gross) ♦ F 60.30 - 0.05 0.97
UK Aggressive Acc ♦ F 211.30 - 2.35 1.71
UK Aggressive Inc ♦ F 175.97 - 1.96 1.74
UK Growth Acc ♦ F 575.68 - 6.79 1.75
UK Growth Inc ♦ F 365.24 - 4.31 1.78
UK Smaller Cos Equity Acc ♦ F 859.44 - 5.10 0.55
UK Smaller Cos Equity Inc ♦ F 662.80 - 3.93 0.56
UK Strategic Income Acc ♦ F 186.43 - 0.55 3.43
UK Strategic Income Inc ♦ F 139.76 - 0.42 3.51
US Equity Acc ♦ F 543.10 - 4.98 0.00
Invesco Perpetual Funds (No Trail)
Asian (No Trail) Acc ♦ F 183.21 - -0.15 1.36
Asian (No Trail) Inc ♦ F 166.59 - -0.14 1.37
Asian Equity Income (No Trail) Acc ♦ F 121.51 - 0.04 4.16
Asian Equity Income (No Trail) Inc 103.54 - 0.04 4.27
Balanced Risk 6 No Trail Acc 107.91 - 0.14 0.16
Balanced Risk 8 No Trail Acc 111.46 - 0.20 0.42
Balanced Risk 10 No Trail Acc 114.90 - 0.27 0.56
Corporate Bond (No Trail) Acc ♦ F 163.39 - -0.09 3.90
Corporate Bond (No Trail) Inc ♦ F 117.54 - -0.06 3.99
Distribution (No Trail) Acc ♦ F 169.52 - 0.53 4.22
Distribution (No Trail) Inc ♦ F 113.83 - 0.35 4.30
Emerging European (No Trail) Acc ♦ F 73.16 - 0.51 3.55
Emerging European (No Trail) Inc ♦ F 66.70 - 0.46 3.66
European Equity (No Trail) Acc ♦ F 153.11 - -0.44 2.72
European Equity (No Trail) Inc ♦ F 129.32 - -0.38 2.80
European Equity Income (No Trail) Acc ♦ F 155.88 - 0.21 3.44
European Equity Income (No Trail) Inc ♦ F 120.69 - 0.16 3.52
European High Income (No Trail) Acc ♦ F 165.67 - -0.17 3.37
European High Income (No Trail) Inc ♦ F 121.43 - -0.12 3.43
European Opportunities (No Trail) Acc ♦ F 183.47 - -0.99 0.70
European Opportunities (No Trail) Inc ♦ F 174.11 - -0.94 0.71
Asset Management
Fund Bid Offer +/- Yield
European Smaller Companies (No Trail) Acc ♦ F 231.52 - -1.05 0.48
Global Balanced Index (No Trail) Acc ♦ F 158.85 - 1.22 1.78
Global Bond (No Trail) Acc ♦ F 134.62 - 0.05 1.45
Global Bond (No Trail) Inc ♦ F 122.42 - 0.05 1.46
Glbl Distribution Acc (No Trail) 108.68 - 0.32 3.78
Glbl Distribution Inc (No Trail) 104.44 - 0.30 3.85
Gbl Emerging Markets (No Trail) Acc ♦ F 158.64 - 0.69 1.03
Gbl Emerging Markets (No Trail) Inc ♦ F 149.52 - 0.65 1.04
Global Equity (No Trail) acc ♦ F 213.50 - 1.83 0.99
Global Equity (No Trail) inc ♦ F 199.80 - 1.71 1.00
Global Equity Income (No Trail ) Acc ♦ F 254.09 - 2.03 3.24
Global Equity Income (No Trail) Inc ♦ F 211.82 - 1.70 3.32
Global ex UK Core Equity Index ( No Trail) Acc ♦ F 170.74 - 1.32 1.33
Global ex UK Enhanced Index ( No Trail) Acc ♦ F 201.38 - 1.35 1.75
Gbl Fin Cap No Trail Acc 182.23 - 0.22 4.33
Gbl Fin Cap No Trail Inc 156.51 - 0.19 4.46
Global Opportunities (No Trail) Acc ♦ F 251.68 - 3.29 0.96
Global Smaller Companies (No Trail) Acc ♦ F 249.74 - 1.38 0.39
Global Smaller Companies (No Trail) Inc ♦ F 240.21 - 1.32 0.39
Global Targeted Rets (No Trail) Acc 113.37 - -0.04 0.84
High Income (No Trail) Acc ♦ F 176.26 - 0.65 3.48
High Income (No Trail) Inc ♦ F 129.59 - 0.48 3.57
High Yield Fund (No Trail) Acc 225.00 - 0.01 4.59
High Yield Fund (No Trail) Inc 169.51 - 0.01 4.70
Hong Kong & China (No Trail) Acc ♦ F 188.15 - 0.61 1.16
Income & Growth (No Trail) Acc ♦ F 229.30 - 1.89 3.66
Income & Growth (No Trail) Inc ♦ F 181.52 - 1.50 3.76
Income (No Trail) Acc ♦ F 175.00 - 0.56 3.26
Income (No Trail) Inc ♦ F 130.11 - 0.41 3.34
Japan (No Trail) Acc ♦ F 151.93 - 2.21 0.76
Japanese Smaller Companies (No Trail) Acc ♦ F 164.46 - -0.12 0.00
Latin American (No Trail) Acc ♦ F 108.57 - 1.46 2.02
Latin American (No Trail) Inc ♦ F 99.15 - 1.33 2.05
Managed Growth (No Trail) Acc ♦ F 198.79 - 1.09 1.21
Managed Growth (No Trail) Inc ♦ F 182.81 - 1.00 1.23
Managed Income (No Trail) Acc ♦ F 193.57 - 0.79 3.12
Managed Income (No Trail) Inc ♦ F 160.32 - 0.66 3.17
Monthly Income Plus (No Trail) Acc ♦ F 172.79 - 0.21 4.64
Monthly Income Plus (No Trail) Inc ♦ F 110.27 - 0.14 4.73
Pacific (No Trail) Acc ♦ F 182.51 - 1.13 0.82
Pacific (No Trail) Inc ♦ F 173.23 - 1.07 0.90
Tactical Bond (No Trail) Acc ♦ F 141.50 - 0.11 1.45
Tactical Bond (No Trail) Inc ♦ F 120.65 - 0.09 1.46
UK Aggressive (No Trail) Acc ♦ F 173.59 - 1.93 2.23
Asset Management
UK Aggressive (No Trail) Inc ♦ F 146.06 - 1.63 2.27
UK Enhanced Index (No Trail) Acc ♦ F 413.42 - 7.63 3.50
UK Enhanced Index (No Trail) Inc ♦ F 262.66 - 4.85 3.59
UK Growth (No Trail) Acc ♦ F 152.04 - 1.80 2.25
UK Growth (No Trail) Inc ♦ F 124.41 - 1.47 2.31
UK Smaller Companies Equity (No Trail) Acc ♦ F 279.40 - 1.66 1.02
UK Smaller Companies Equity (No Trail) Inc ♦ F 260.76 - 1.56 1.03
UK Strategic Income (No Trail) Acc ♦ F 739.47 - 2.22 3.42
UK Strategic Income (No Trail) Inc ♦ F 554.37 - 1.66 3.50
US Equity (No Trail) Acc ♦ F 225.83 - 2.07 0.04
Invesco (LUX)
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282
FCA Recognised
Invesco Management SA
Invesco Active Multi-Sector Credit Fund A € 2.95 - 0.01 0.00
Invesco Asia Balanced A dist $ 14.76 - 0.03 3.51
Invesco Asia Consumer Demand Fund A income $ 13.56 - -0.08 0.18
Invesco Asia Infrastructure (A) $ 13.60 - 0.03 1.39
Invesco Asia Opportunities Equity A $ 107.39 - -0.26 0.00
Invesco Balanced Risk Allocation Fund A € 15.14 - 0.03 0.00
Invesco Global Conservative Fund 90 (EUR) A € 12.21 - 0.03 0.00
Invesco Emerging Europe Equity Fund A $ 8.48 - 0.05 0.00
Invesco Emerging Local Currencies Debt A Inc $ 7.46 - -0.02 6.49
Invesco Emerging Mkt Quant.Eq. A $ 10.00 - -0.01 0.00
Invesco Energy A $ 19.76 - 0.37 0.00
Invesco Euro Corporate Bond Fund (A) € 17.26 - 0.00 0.00
Invesco Euro Inflation Linked Bond A € 15.64 - 0.10 0.00
Invesco Euro Reserve A € 322.84 - 0.00 0.00
Invesco European Bond A € 7.10 - 0.01 0.00
Invesco European Growth Equity A € 25.69 - 0.27 0.00
Invesco Global Absolute Return Fund A Class € 11.29 - 0.00 0.00
Invesco Global Bond A Inc $ 5.53 - 0.00 0.97
Invesco Global Equity Income Fund A $ 62.55 - 0.25 0.00
Invesco Global Inc Real Estate Sec A dist $ 9.38 - 0.01 2.15
Invesco Global Inv Grd Corp Bond A Dist $ 11.74 - 0.00 3.10
Invesco Global Leisure A $ 37.80 - 0.38 0.00
Invesco Global Smaller Comp Eq Fd A $ 58.94 - 0.17 0.00
Invesco Global Structured Equity A $ 48.07 - 0.31 0.75
Invesco Global Total Ret.(EUR) Bond Fund A € 13.37 - 0.00 0.00
Invesco Gold & Precious Metals A $ 3.68 - 0.03 0.00
Invesco Greater China Equity A $ 46.04 - 0.16 0.00
Invesco India Equity A $ 57.09 - 0.14 0.00
Invesco Japanese Equity Adv Fd A ¥ 3989.00 - 37.00 0.00
Invesco Japanese Value Eq Fd A ¥ 1308.00 - 10.00 0.00
Invesco Latin American Equity A $ 6.70 - 0.08 0.00
Invesco Nippon Small/Mid Cap Equity A ¥ 1053.00 - 3.00 0.00
Invesco Pan European Equity A EUR Cap NAV € 21.16 - 0.27 0.00
Invesco Pan European High Income Fd A € 14.34 - 0.03 2.17
Invesco Pan European Small Cap Equity A € 23.64 - 0.09 0.00
Invesco Pan European Structured Equity A € 17.97 - 0.13 0.00
Invesco UK Eqty Income A £ 31.89 - 0.10 0.00
Invesco UK Investment Grade Bond A £ 0.98 - 0.00 2.97
Invesco US Structured Equity A $ 21.60 - 0.17 0.00
Invesco US Value Eq Fd A $ 33.23 - 0.34 0.00
Invesco USD Reserve A $ 87.02 - 0.00 0.00
Invesco Global Asset Management Ltd (IRL)
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
FCA Recognised
Invesco Stlg Bd A QD F £ 2.61 - -0.01 3.38
Invesco Asian Equity A $ 6.54 - -0.02 0.47
Invesco ASEAN Equity A $ 97.87 - -0.60 0.39
Invesco Bond A $ 26.80 - -0.08 2.23
Invesco Continental Eurp Small Cap Eqty A $ 205.39 - -0.99 0.00
Invesco Emerging Markets Equity A $ 37.71 - 0.10 0.00
Invesco Emerging Markets Bond A $ 20.80 - 0.06 4.81
Invesco Continental European Equity A € 9.52 - 0.07 0.19
Invesco Gilt A £ 14.79 - 0.00 1.49
Invesco Global Small Cap Equity A NAV $ 127.07 - 0.49 0.00
Invesco Global High Income A NAV $ 12.63 - 0.04 5.34
Invesco Gbl R/Est Secs A GBP F F £ 7.69 - 0.05 0.95
Invesco Global Health Care A $ 145.80 - -0.81 0.00
Invesco Global Select Equity A $ 14.00 - 0.10 0.00
Invesco Jap Eqty Core A $ 1.92 - 0.02 0.00
Invesco Japanese Equity A $ 18.91 - 0.04 0.00
Invesco Korean Equity A $ 34.28 - -0.74 0.00
Invesco PRC Equity A $ 55.19 - -0.15 0.00
Invesco Pacific Equity A $ 49.63 - 0.22 0.17
Invesco Global Technology A $ 16.27 - 0.00 0.00
Invesco UK Eqty A £ 8.52 - 0.09 1.29
Invest AD
Client services: +971 2 692 6101 clientservices@InvestAD.com
Other International Funds
Invest AD - Iraq Opportunity Fund $ 67.75 - -0.14 0.00
Invest AD - Emerging Africa Fund $ 1040.46 - 3.95 0.00
Invest AD - GCC Focus Fund $ 1733.46 - -1.33 0.00
★ FINANCIAL TIMES Friday 31 July 2015
MANAGED FUNDS SERVICE
Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield
Golden Age (USD) PA F $ 22.09 - 0.25 0.00 Emerging Markets Eq.A1 $ 11.12 - 0.12 0.00 Global Emerg Mkts Equity Fund X £ 11.36 - -0.02 0.52
Sh.T- Money Mkt EUR PA € 112.34 - 0.00 0.00 European Concentrated A1 € 18.64 - 0.12 0.00 Series 2 (Investment Management customers only)
Meridian Fund Managers Ltd
Other International Funds United Kingdom Equity Index Fund £ 13.01 - 0.14 3.10
Sh.T- Money Mkt CHF PA SFr 128.95 - 0.00 0.00 European Core Eq A1 € 32.54 - 0.28 0.00
$ 181.53 - -4.44 - UK Specialist Equity Inc £ 20.02 - 0.09 1.68
Sh.T- Money Mkt GBP PA £ 10.26 - 0.00 0.00 European Res.A1 € 34.16 - 0.32 0.00
Global Energy & Resources Fund $ 44.05 - -1.37 - Contl Europe Spec Equity £ 17.06 - 0.05 0.60
Sh.T- Money Mkt USD PA $ 10.30 - 0.00 0.00 European Smaller Companies A1 € 52.11 - 0.55 0.00
US Spec Equity Fund £ 14.36 - 0.05 0.16
Sw.Fr.Bd(For) PA SFr 23.88 - 0.00 0.00 European Value A1 € 37.00 - 0.31 0.00
JPMorgan Asset Mgmt (1200)F (UK) Kames Capital ICVC (UK) Japan Specialist Fund X £ 10.32 - 0.00 0.51
Sw.Fr.Credit Bd(For) PA SFr 13.72 - -0.01 0.00 Global Conc.A1 $ 37.91 - 0.23 0.00 Metage Capital
60 Victoria Embankment, London EC4Y 0JP Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA Other International Funds Pacific Basin Specialist Equity Fund £ 22.43 - -0.06 1.27
Brokerline: 0800 727 770, Clients: 0800 20 40 20 0800 45 44 22 www.kamescapital.com Tactical Alpha (CHF) PA SFr 10.15 - -0.01 0.00 Global Credit Fund $ 10.38 - -0.03 0.00
MGS -Master Series (Est) $ 240.66 - -2.89 - UK Sovereign Bd Index Fund £ 10.99 - -0.03 2.63
Authorised Inv Funds Authorised Funds Tactical Alpha (EUR) PA € 10.44 - -0.01 0.00 Global Energy Fund A1 $ 13.39 - 0.19 0.00
JPM Retail OEIC (A class unless stated) Diversified Income B Acc 113.22 - 0.42 5.24 MEMO - Master Series $ 501.03 - -3.56 0.00 UK Specialist Equity Income Fund £ 10.77 - 0.05 3.64
Tactical Alpha (USD) PA $ 15.00 - -0.01 0.00 Global Equity A1 $ 47.55 - 0.26 0.00
America Equity Acc 60.99 - 0.52 0.00 MEMO - MEMV Series $ 117.28 - -0.07 0.00
Diversified Income B Inc 105.46 - 0.39 5.42 Global Spec Inv Grade Bd Fund GBP £ 10.12 - -0.01 3.22
Technology PA € 14.23 - -0.03 0.00 Global Equity A1 € 27.57 - 0.41 0.00
America Equity Inc 60.99 - 0.52 0.00
Diversified Growth A Acc 135.37 - 0.70 2.59 Inflation Lkd Sov Bd Fund £ 12.66 - -0.05 0.68
Technology PA $ 21.61 - -0.04 0.00 Global High Yield Fund $ 25.33 - 0.08 0.00
Asia Acc 120.20 - -0.30 0.32
Ethical Cautious Managed A Acc 167.44 - 1.10 1.68 Ministry of Justice Common Investment Funds (UK) Global Emerg Mkts Equity Fund X £ 10.98 - -0.02 0.73
Wld Gold Expertise PAF SFr 9.02 - 0.15 0.00 Global High Yield Fund € 16.87 - 0.21 0.00
Asia Inc 66.70 - -0.17 0.31 Property & Other UK Unit Trusts The initial charge you will pay will depend on the amount you invest
Ethical Cautious Managed A Inc 139.03 - 0.91 1.70
Wld Gold Expertise PA € 7.18 - 0.12 0.00 Global Multi-Asset A1 $ 16.00 - 0.04 0.00 **Address and Telephone number for series 1 only
Cautious Managed Rt Acc 68.52xd - 0.28 0.08 The Equity Idx Tracker Fd Inc 1371.00 1371.00 12.00 2.68
Ethical Corporate Bond A Acc 194.69 - -0.27 3.33
Wld Gold Expertise PA $ 9.51 - 0.16 0.00 Global Res.A1 $ 27.28 - 0.20 0.00 Distribution Units
Cautious Managed Rt Inc 60.29xd - 0.24 0.08
Ethical Corporate Bond A Inc 111.21 - -0.16 3.33 LO Selection
Global Total Return A1 € 18.24 - 0.24 0.00
Diversified Real Ret Acc 51.65 - 0.11 1.07
Ethical Equity A Acc 178.69 - 2.08 1.00 Balanced (CHF) PA F SFr 109.94 - 0.33 0.00
Inflation-Adjusted Bond A1 $ 14.06 - -0.01 0.00 Mirabaud Asset Management (LUX)
Diversified Real Ret Inc 50.42 - 0.11 1.06
High Yield Bond A Acc 116.44 - 0.37 4.05 Balanced (EUR) PA F € 129.11 - 0.50 0.00 www.mirabaud.com, marketing@mirabaud.com
Japan Equity A1 $ 10.72 - 0.10 0.00
Emerging Mkts Acc 141.40 - 0.90 0.73 Regulated
High Yield Bond A Inc 53.53 - 0.17 4.07 Conservative (CHF) PA F SFr 105.11 - 0.11 0.00
Asset Management
Latin American Equity Fd A1 $ 13.36 - 0.17 0.00
Emerging Mkts Inc 60.80 - 0.36 0.74 Mir. Conv. Bds Eur A EUR € 138.91 - 0.67 0.00
Investment Grade Bond A Acc 158.66 - -0.17 3.01
Asset Management Asset Management
Conservative (EUR) PA F € 115.92 - 0.18 0.00
Limited Maturity A1 $ 14.04 - 0.00 0.00
Emrg Mkts Inc Acc... C 51.61xd - 0.38 4.47 Mir. Conv. Bds Glb A USD $ 115.89 - 0.70 0.00
Investment Grade Bond A Inc 116.97 - -0.12 3.01 Global Allocation (GBP) PA F £ 10.07 - 0.01 0.00 New Capital Fund Management Ltd (IRL)
Prudent Wealth Fd A1 $ 14.72 - 0.05 0.00
Emrg Mkts Inc Inc... C 46.42xd - 0.34 4.60 Mir. - Eq Asia ex Jap A $ 182.90 - -1.00 0.00 Leconfield House, Curzon Street, London, W1J 5JB
Sterling Corporate Bond A Acc 69.40 - -0.07 2.96 Growth (CHF) PA F SFr 115.73 - 0.52 0.00
Research Bond A1 $ 16.55 - -0.01 0.00 FCA Recognised
Europe Acc 1066.00 - -3.00 1.46 Mir. - Eq Glb Emrg Mkt A USD $ 96.54 - -0.37 0.00
Sterling Corporate Bond A Inc 31.19 - -0.03 2.96 Growth (EUR) PA F € 141.30 - 0.83 0.00 New Capital UCITS Funds
UK Equity A1 £ 8.24 - 0.06 0.00
Europe Inc 61.38 - -0.13 1.46 Mir. - Eq Global Focus A USD $ 105.57 - 0.47 0.00
Strategic Bond A Acc 180.94 - 0.06 2.09 Vantage 1500 (EUR) MA € 10.33 - 0.00 0.00 Asia Pac Bd USD Inst Inc $ 93.42 - 0.04 3.12
US Conc.Growth A1 $ 15.83 - 0.14 0.00
Eur Dynamic exUK Acc 164.90 - -1.40 0.79 Mir. -Eq Spain A € 28.98 - -0.05 0.00
Strategic Bond A Inc 120.63 - 0.04 2.09 Vantage 3000 (EUR) MA € 10.56 - 0.01 0.00 Asia Pac Bd USD Ord Inc $ 95.44 - 0.04 2.41
US Government Bond A1 $ 17.01 - -0.02 0.00
Eur Dynamic exUK £ hdg Acc 196.60 - -0.40 0.67 PrivilEdge Mir. - Eq Swiss Sm/Mid A SFr 321.31 - 3.28 0.00
UK Equity Absolute Return A Acc 118.96 - -0.25 0.00 Asia Pac Eq EUR Ord Inc € 94.79 - 0.85 2.82
Value A1 $ 22.66 - 0.22 0.00
Eur Dynamic exUK Inc 75.70 - -0.66 0.79 Inc.Pt.RMB Dt.CNH PA CNH 102.27 - -0.05 0.00 Mir. - Glb High Yield Bds A $ 110.63 - 0.16 -
UK Equity A Acc 236.57 - 2.30 1.13 Asia Pac Eq GBP Ord Inc £ 98.37 - 0.87 3.18
Eur Smaller Cos Acc 465.50 - -2.60 0.00 Inc.Pt.RMB Dt.SH CHF PA SFr 10.12 - 0.00 0.00 Mir. - Glb Eq High Income A USD $ 103.76 - 0.64 0.00
UK Equity Income A Acc 207.68 - 2.43 4.38 Asia Pac Eq USD Ord Inc $ 99.04 - 0.88 2.61
Eur Smaller Cos Inc 60.54 - -0.33 0.00 Inc.Pt.RMB Dt.SH EUR PA € 10.19 - 0.01 0.00 MMIP Investment Management Limited (GSY) Mir. - Glb Strat. Bd A USD $ 106.54 - 0.05 0.00
UK Equity Income A Inc 163.44 - 1.91 4.37 Asia Pac Eq USD Inst Acc $ 104.74 - 0.92 0.00
Regulated
Fusion Balanced Acc 55.39xd - 0.12 0.47 Inc.Pt.RMB Dt.USD PA $ 10.25 - 0.00 0.00
UK Opportunities A Acc 172.66 - 1.37 0.98 Multi-Manager Investment Programmes PCC Limited Asia Pac Eq USD Inst Inc $ 110.50 - 0.99 3.22
Fusion Balanced Inc 55.38xd - 0.12 0.47 Jenn. US Eq.Opp. USD PA $ 10.07 - 0.10 0.00 European Equity Fd Cl A Initial Ser € 2514.64 2524.74 -120.35 0.00
UK Smaller Companies A Acc 274.92 - 4.69 0.25 Dyn Europ Eq EUR Ord Inc € 182.32 - 1.59 1.11
Fusion Conservative Acc 54.68xd - 0.09 0.65 Neubrg.Berman US Core PA $ 14.37 - 0.11 0.00 Japanese Equity Fd Cl A Initial Ser ¥ 371836.00 373104.00 -8866.00 0.00
Dyn Europ Eq GBP Ord Inc £ 194.13 - 1.68 1.66
Fusion Conservative Inc 54.56xd - 0.10 0.67 Sands US Growth PA € 14.54 - 0.06 0.00 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1354.36 1358.38 -37.60 0.00
Dyn Europ Eq USD Ord Inc $ 182.63 - 1.60 1.14
Kames Capital Investment Portfolios ICVC (UK)
Fusion Growth Acc 57.00xd - 0.14 0.47 Sands US Growth PA $ 17.62 - 0.07 0.00 Pacific Basin Fd Cl A Initial Ser $ 2369.35 2383.58 -74.64 0.00
Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA China Equity EUR Ord Acc € 147.36 - 1.42 0.00
Fusion Growth Inc 57.00xd - 0.14 0.47 0800 45 44 22 www.kamescapital.com Will.Blair Gbl. Ldrs PA € 16.42 - 0.15 0.00 UK Equity Fd Cl A Series 01 £ 2354.31 2377.69 -70.65 0.00
China Equity GBP Ord Acc £ 154.13 - 1.48 0.00
Authorised Funds
Fusion Growth + Acc 58.96xd - 0.18 0.47 Will.Blair Gbl. Ldrs PA $ 13.51 - 0.12 0.00 Diversified Absolute Rtn Fd USD Cl AF2 $ 1639.80 - -8.66 0.00 Montello Real Estate Opportunity Fund (LUX)
Property Income B Acc 115.72 - 0.05 - 101 New Cavendish Street,London W1W 6XH China Equity USD Ord Acc $ 150.40 - 1.44 0.00
Fusion Growth + Inc 58.96xd - 0.17 0.47 Diversified Absolute Return Stlg Cell AF2 £ 1660.21 - -7.87 0.00 Regulated
Property Income B Inc 109.49 - 0.03 - China Equity USD Inst Acc $ 154.15 - 1.48 0.00
Fusion Income Acc...C 54.09xd - 0.07 2.41 Montello Real Estate Opportunity Fund II £ 1116.65 - 7.25 0.00
Lothbury Property Trust (UK) Global Val.Cr.Fd GBP Ord Inc £ 112.68 - 0.01 3.78
Fusion Income Inc...C 51.73xd - 0.07 2.42 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900
Manek Investment Mgmt Ltd (1000)F (UK) Global Val.Cr.Fd USD Inst Acc $ 124.38 - 0.02 0.00
Kames Capital VCIC (IRL) Property & Other UK Unit Trusts
Global Allocation Acc 55.06 - 0.25 0.64 P.O.Box 100, Swindon SN1 1WR 0844 800 9401
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Lothbury Property Trust GBP £ 1705.49 1829.88 6.39 3.39 MW Japan Fund Plc (IRL) Global Val.Cr.Fd GBP Ord Acc £ 179.44 - 0.04 0.00
Authorised Inv Funds
Global Allocation Inc 54.70 - 0.25 0.64 FCA Recognised FCA Recognised
Growth Fd Acc 57.56 60.88 -0.43 0.00 Global Val.Cr.Fd USD Ord Acc $ 168.54 - 0.03 0.00
Absolute Return Bond B GBP Acc 1078.02 - -0.73 - MW Japan Fund PLC A $ 25.36 - 0.04 -
Global Bond exUK Acc 249.10 - 0.00 0.75
Global Val.Cr.Fd EUR Ord Acc € 157.29 - 0.03 0.00
Eq Market Neutral B Acc 1019.25 - -2.10 - MW Japan Fund PLC B $ 25.61 - 0.04 -
Global Bond exUK Inc 196.60 - 0.00 0.75
Swiss Select Equity Inst Acc SFr 115.86 - 0.73 0.00
Eq Market Neutral Plus B Acc 1033.08 - -4.44 - Manulife Global Fund (LUX) MW Japan Fund PLC C $ 101.07 - 0.70 -
Global Bond Opport. Acc 50.11xd - 0.11 2.83
Asset Management
31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg Swiss Select Equity Ord Acc SFr 114.83 - 0.72 0.00
Global Bond Opport. Inc 49.69xd - 0.11 2.85 High Yield Global Bond A GBP Inc 539.32 - 1.63 3.62
www.manulife.com.hk
US Growth USD Ord Acc $ 218.13 - 0.36 0.00
Asset Management
High Yield Global Bond B GBP Inc 1121.25 - 3.41 4.12 FCA Recognised
Global Eq Income £ hdg Acc... C 70.38xd - 0.45 3.73 Morant Wright Funds (Ireland) PLC (IRL)
US Growth EUR Ord Acc € 208.49 - 0.34 0.00
Investment Grade Global Bd A GBP Inc 560.68 - -0.47 2.41 American Growth Fund Class A F $ 31.0364 - 0.0087 0.00 FCA Recognised
Global Eq Income £ hdg Inc ... C 51.06xd - 0.32 3.83
M & G Securities (1200)F (UK)
Morant Wright Fuji Yield EUR Acc Hedged € 11.88 - 0.09 - US Growth GBP Ord Acc £ 218.95 - 0.35 0.00
Kames Global Equity Income B GBP Acc 1147.53 - 3.38 - American Growth Fund Class AA F $ 1.7628 - 0.0005 0.00
Global Eq Income Acc... C 72.01xd - 0.34 3.78 PO Box 9039, Chelmsford, CM99 2XG
www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196 American Growth Fund Class AA (HKD) FHK$ 10.9251 Asset Management
- 0.0038 - Morant Wright Fuji Yield EUR Dist Hedged € 11.82 - 0.09 - US Growth USD Inst Acc $ 200.91 - 0.33 0.00
Asset Manageme
Global Eq Income Inc ... C 63.18xd - 0.29 3.88 Kames Global Equity Income B GBP Inc 1105.67 - 3.26 -
Authorised Inv Funds Morant Wright Fuji Yield GBP Acc Hedged £ 12.14 - 0.09 - Wealthy Nat Bd EUR Inst Inc € 109.36 - 0.01 3.90
Strategic Global Bond A GBP Inc 1107.12 - 0.37 0.47 Asian Equity Fund Class A F $ 3.1748 - -0.0074 0.37
Global Equity Acc 1026.00 - 6.00 0.15 Charifund Inc 1483.98 - 14.37 4.54
Morant Wright Fuji Yield GBP Dist Hedged £ 11.88 - 0.09 - Wealthy Nat Bd GBP Inst Inc £ 113.31 - 0.00 3.76
Strategic Global Bond B GBP Inc 628.38 - 0.21 0.97 Asian Equity Fund Class AA F $ 1.0214 - -0.0024 0.00
Global Equity Inc 76.25 - 0.43 0.14 Charifund Acc 19921.32 - 192.98 4.41
Morant Wright Fuji Yield USD Acc Hedged $ 11.83 - 0.09 - Wealthy Nat Bd EUR Ord Inc € 108.66 - 0.01 3.62
Asian Small Cap Equity Fund Class AA F $ 2.2170 - 0.0081 0.00
Global Financials Acc 765.60 - 6.30 0.82 M&G Corporate Bond A Acc 62.10xd - -0.05 3.11
Morant Wright Fuji Yield USD Dist Hedged $ 11.97 - 0.08 - Wealthy Nat Bd GBP Ord Inc £ 113.97 - 0.01 3.51
Asian Small Cap Equity Fund Class AA (HKD)HK$ 8.9696 - 0.0343 -
Global Financials Inc 43.54 - 0.36 0.82 Kleinwort Benson Bank (UK) M&G Corporate Bond A Inc 39.25xd - -0.03 3.11
Morant Wright Fuji Yield YEN Acc ¥ 1214.71 - 8.86 - Wealthy Nat Bd USD Ord Inc $ 110.96 - 0.01 3.47
14 St. George Street, Mayfair, London W1S1FE China Value Fund Class A F $ 8.7793 - -0.0400 0.62
Global High Yield Bd Mth Inc C 38.35xd - 0.18 6.22 M&G Dividend A Inc 62.26xd - 0.57 4.41 New Capital Alternative Strategies
Dealing and enquiries: 0800 024 2400 China Value Fund Class AA F $ 2.7491 - -0.0126 0.42 Morant Wright Fuji Yield B YEN Acc ¥ 1072.92 - 7.85 -
Global High Yield Bd Acc C 99.69xd - 0.47 6.19 Authorised Inv Funds M&G Dividend A Acc 623.66xd - 5.77 4.25 All Weather Fd USD Cls $ 120.69 - -1.63 0.00
Dragon Growth Fund Class A F $ 2.0499 - -0.0092 0.55 Morant Wright Fuji Yield YEN Dist ¥ 1201.34 - 8.76 -
Global High Yield Bd Inc C 38.64xd - 0.18 6.19 Unit Trust Manager/ACD - Host Capital
M&G Episode Growth X Inc 53.40 - 0.37 1.85 All Weather Fd EUR Cls € 108.61 - -1.54 0.00
HC KB Capital Growth A Acc 166.53 - 0.70 1.36 Dragon Growth Fund Class AA HKDHK$ 9.9165 - -0.0441 0.52 Morant Wright Sakura Fund Sterling Acc Hedged £ 14.49 - 0.13 0.00
Global Property Secs Acc 58.43 - 0.33 0.71 M&G Episode Income A Acc 140.68xd - 0.45 3.51 All Weather Fd GBP Cls £ 117.15 - -1.54 0.00
HC KB Capital Growth A Inc 155.93 - 0.65 1.38 Emerging Eastern Europe Fund Class AA F $ 1.3470 - 0.0009 0.48 Morant Wright Sakura Fund Euro Acc Hedged € 14.44 - 0.12 0.00
Global Property Secs Inc 50.65 - 0.29 0.72 M&G Episode Income A Inc 118.69xd - 0.38 3.58 Tactical Opps USD Cls $ 156.39 - -4.97 0.00
HC KB Enterprise Equity Income A Inc 112.85 - 0.43 3.78 Emerging Eastern Europe Fund Class A F $ 3.1359 - 0.0021 0.86 Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1473.75 - 12.47 0.00
Income Acc ... C 50.17xd - 0.11 6.15 M&G Extra Income A Inc 736.45xd - 6.10 4.39 Tactical Opps EUR Cls € 130.98 - -4.16 0.00
HC KB Enterprise Equity Income A Acc 163.99 - 0.63 3.69 European Growth Fund Class A F $ 11.1021 - 0.0036 1.18 Morant Wright Sakura Fund Dollar Acc Hedged $ 14.43 - 0.12 0.00
Income Inc ... C 47.59xd - 0.10 6.17 M&G Extra Income A Acc 5975.25xd - 49.48 4.26 Tactical Opps GBP Cls £ 147.28 - -4.71 0.00
HC KB Endeavour Multi Asset Balanced A Acc 133.12 - 0.52 0.81 European Growth Fund Class AA F $ 0.8030 - 0.0003 0.57 Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 14.35 - 0.12 0.00
Japan Acc 297.40 - -0.90 0.00 M&G Global Basics A Inc 632.90 - 4.55 0.29
HC KB Endeavour Multi Asset Balanced A Inc 126.51 - 0.49 0.81 Global Contrarian Fund Class AA F $ 0.9550 - 0.0018 0.00
Japan Inc 71.58 - -0.22 0.00 M&G Global Basics A Acc 955.45 - 6.87 0.29
HC KB Enterprise Fixed Income A Acc 122.91 - -0.15 3.44 Global Property Fund Class AA F $ 1.0111 - 0.0033 0.77
Multi-Asset Inc Mth Inc ... C 66.04xd - 0.32 3.61 M&G Global Dividend Fund A Acc 196.65xd - 1.53 3.21
HC KB Enterprise Fixed Income A Inc 110.47 - -0.14 3.44 Global Property Fund Class AA (HKD)HK$ 9.5019 - 0.0429 -
Multi-Asset Inc Acc... C 87.06xd - 0.41 3.59 M&G Global Dividend Fund A Inc 156.32xd - 1.22 3.27
Global Resources Fund Class AA F $ 0.6871 - 0.0083 0.00
Multi-Asset Inc Inc... C 66.49xd - 0.31 3.64 M&G Glbl Emrgng Mkts A Acc 194.56 - 1.54 0.88
Greater China Opportunities Class AA $ 1.0237 - -0.0012 0.00
Multi-Asset Macro Acc 64.89 - 0.22 0.00 Lloyds Investment Fund Managers Limited (1000)F (JER) M&G Glbl Emrgng Mkts A Inc 187.98 - 1.50 0.89
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Healthcare Fund Class AA F $ 2.0219 - -0.0209 0.00
Multi-Asset Macro Inc 64.89 - 0.22 0.00 M&G Global Macro Bond Fund A Acc 104.85 - 0.11 0.96
Northwest Investment Management (HK) Ltd
Other International Funds Morgan Stanley Investment Funds (LUX)
India Equity Fund Class AA F $ 1.4294 - 0.0050 0.00 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Multi-Manager Growth Acc 732.30 - 0.10 0.45 Lloydstrust Gilt £ 12.1100xd - -0.0400 2.68 M&G Global Macro Bond Fund A Inc 72.83 - 0.08 0.96 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61 Other International Funds
International Growth Fund Class A F $ 4.8018 - -0.0178 0.13 www.morganstanleyinvestmentfunds.com
Multi-Manager Growth Inc 683.40 - 0.10 0.45 Lloyds Investment Funds Limited M&G Global High Yield Bond X Inc 50.72xd - 0.61 4.30 Northwest $ class $ 2429.34 - -84.43 0.00
FCA Recognised
Euro High Income € 1.6400xd - -0.0010 3.01 International Growth Fund Class AA F $ 1.1022 - -0.0041 0.00
Natural Resources Acc 375.00 - 8.70 0.11 M&G Global High Yield Bond X Acc 118.22xd - 1.42 4.30 US Advantage A F $ 59.26 - -0.25 0.00 Northwest Warrant $ class $ 2602.22 - -348.84 0.00
European £ 7.6880 - 0.0330 1.12 Japanese Growth Fund Class A F $ 3.5273 - 0.0265 0.58
Natural Resources Inc 26.56 - 0.61 0.11 M&G Managed Growth X Inc 77.87 - 0.57 0.67 Asian Equity A F $ 44.03 - -0.40 0.00
High Income £ 0.8726 - -0.0024 5.05 Japanese Growth Fund Class AA F $ 0.9070 - 0.0068 0.00
New Europe Acc 137.40 - 0.90 2.64 M&G Optimal Income A Inc 143.40 - 0.06 2.06 Asian Property A F $ 18.78 - 0.02 0.00
International £ 4.1690 - 0.0280 1.17 Latin America Equity Fund Class AA F $ 0.7927 - 0.0006 1.50
New Europe Inc 32.65 - 0.22 2.60 M&G Optimal Income A Acc 188.01 - 0.08 2.06 Asian Property AX F £ 11.09 - 0.05 0.55
North American £ 15.7800 - 0.1500 0.13 Russia Equity Fund Class AA F $ 0.4285 - 0.0042 0.00
Portfolio Acc 204.40xd - 1.80 0.67 M&G Recovery GBP A Inc 125.86xd - 1.07 0.70 Diversified Alpha Plus A F € 31.47 - 0.04 0.00
Sterling Bond £ 1.4700xd - -0.0050 3.53 Taiwan Equity Fund Class AA F $ 1.5780 - 0.0117 0.20
Sterling Corporate Bond Acc 82.16xd - -0.10 2.52 M&G Recovery GBP A Acc 282.61xd - 2.40 0.69 Emerg Europ, Mid-East & Africa Eq A F € 71.33 - 0.17 0.00
UK £ 7.0050 - 0.0720 1.70 Turkey Equity Fund Class AA F $ 0.7284 - -0.0063 0.00
Sterling Corporate Bond Inc 51.91xd - -0.06 2.52 M&G Strategic Corp Bond A Inc 73.21xd - -0.04 2.82 Emerging Markets Debt A F $ 76.45 - 0.32 0.00
Lloyds Gilt Fund Limited US Bond Fund Class AA F $ 1.2101 - 0.0006 3.94
Strategic Bond Acc 69.07xd - 0.11 2.58 M&G Strategic Corp Bond A Acc 104.51xd - -0.06 2.82
Oasis Crescent Management Company Ltd
Emerging Markets Domestic Debt AX F £ 10.79 - -0.01 5.63
Lloyds Gilt Fund Quarterly Share £ 1.2590xd - -0.0040 2.02 U.S. Bond Fund Class AA Inc F $ 0.9858 - 0.0007 - Other International Funds
Strategic Bond Inc 57.80xd - 0.09 2.58 M&G Global Leaders GBP A Inc 195.96 - 1.29 1.39 Emerging Markets Equity A F $ 36.01 - -0.18 0.00
Monthly Share £ 1.2130 - -0.0040 2.02 Oasis Crescent Equity Fund R 9.47 - 0.16 0.00
US Bond Fund Class AA (HKD) HK$ 9.9022 - 0.0060 -
UK Active Index + E Acc 289.10 - 4.10 2.97 M&G Global Leaders GBP A Acc 457.17 - 3.01 1.38 Euro Bond A F € 15.64 - 0.03 0.00
Lloyds Money Fund Limited
U.S. Bond Fund Class AA (HKD) IncHK$ 9.8100 - 0.0252 -
UK Active Index + E Inc 54.51 - 0.76 2.97 Sterling Class £ 52.5840 - 0.0000 0.17 M&G UK Inflation Lnkd Corp Bnd A Acc 113.83 - 0.18 0.12 Euro Corporate Bond AX F £ 21.04 - -0.09 1.81
U.S. Special Opportunities Fund Class AA F $ 0.9107 - 0.0029 7.13 Oasis Global Mgmt Co (Ireland) Ltd (IRL)
UK Dynamic Acc 163.50 - 1.10 1.31 Lloyds Multi Strategy Fund Limited M&G UK Inflation Lnkd Corp Bnd A Inc 112.19 - 0.17 0.12 Euro Strategic Bond A F € 43.52 - 0.10 0.00
Regulated
U.S. Special Opportunities Fund Class AA (HKD)HK$ 9.5989 - 0.0104 -
UK Dynamic Inc 134.90 - 0.90 1.31 Conservative Strategy £ 1.0960 - -0.0010 1.97 Oasis Global Investment (Ireland) Plc
European Currencies High Yield Bd A F € 21.92 - 0.00 0.00
U.S. Special Opportunities Fund Class AA Inc $ 0.9021 - 0.0028 -
UK Eq & Bond Inc Acc ... C 142.90xd - 1.20 3.22 Growth Strategy £ 1.5010 - 0.0040 1.32 Oasis Crescent Global Short Term Income Fund $ 1.00 - 0.00 0.36
M & G Securities Ltd (UK) European Equity Alpha A F € 47.67 - 0.26 0.00
US Small Cap Equity Fund Class AA F $ 1.1673 - 0.0026 0.00
UK Eq & Bond Inc Inc ... C 84.54xd - 0.75 3.29 Aggressive Strategy £ 1.8520 - 0.0080 0.00 Oasis Global Equity $ 28.33 - 0.28 0.22
Property & Other UK Unit Trusts European Property A F € 36.18 - 0.04 0.00
Global USD Growth Strategy $ 1.4600 - 0.0110 0.00 US Treasury Inflation-Protected Securities Fund Class AA F $ 1.2816 - 0.0027 0.06 Oasis Crescent Global Investment Fund (Ireland) plc
UK Higher Inc Acc ... C 922.60 - 9.20 3.80 Charibond 124.81 - -0.06 5.20
Eurozone Equity Alpha A F € 12.32 - -0.01 0.00
Dealing Daily Oasis Crescent Global Equity Fund $ 28.75 - 0.28 0.00
UK Higher Inc Inc ... C 549.20 - 5.50 3.92 (Accum Units) 3599.05 - -1.68 5.20
Global Bond A F $ 38.50 - -0.11 0.00
Oasis Crescent Global High Equity Balanced Fund $ 9.88 - 0.07 0.00
UK Managed Equity Acc 68.13xd - 0.97 2.01 NAACIF 77.36 - 0.60 4.45 Manulife Global Fund Global Brands A F $ 100.13 - -0.20 0.00
Other International Funds Oasis Crescent Variable Balanced Fund £ 10.52 - 0.06 -
UK Managed Equity Inc 57.58xd - 0.81 2.03 (Accum Units) 6767.79 - 52.24 4.32
Asia Total Return Fund Class AA $ 0.9865 - -0.0007 - Global Convertible Bond A F $ 43.70 - 0.18 0.00
OasisCresGl Income Class A $ 11.08 - 0.01 2.40
UK Smaller Cos Acc 376.60 - 2.20 0.00 M&G Property Portfolio A Acc 131.04 137.93 0.72 3.65
Asia Total Return Fund Class AA (HKD) Inc FHK$ 9.8634 - 0.0028 - Global Property A F $ 28.57 - -0.01 0.00
OasisCresGl LowBal D ($) Dist $ 12.13 - 0.06 0.00
UK Smaller Cos Inc 73.12 - 0.42 0.00 Property Portfolio A 121.03 127.40 0.66 3.74
Asia Total Return Fund Class AA Inc $ 0.9363 - -0.0007 3.21 Indian Equity A F $ 37.81 - 0.04 0.00
OasisCresGl Med Eq Bal A ($) Dist $ 12.36 - 0.08 0.04
UK Strategic Eq Inc Acc ... C 154.60xd - 1.80 3.53 Property Portfolio X 121.03 121.03 0.66 3.72
Asia Value Dividend Equity Fund Class AA F $ 1.7177 - -0.0139 0.00 Latin American Equity A F $ 43.84 - 0.07 0.00
Oasis Crescent Gbl Property Eqty $ 9.72 - 0.05 2.17
UK Strategic Eq Inc Inc ... C 101.80xd - 1.20 3.60 Short Maturity Euro Bond A F € 20.43 - -0.01 0.00
Lombard Odier Funds (Europe) S.A (LUX) Asia Value Dividend Equity Fund Class AA Inc $ 1.0458 - -0.0083 -
UK Strategic Gth Acc 113.70 - 1.00 1.16 www.loim.com M & G (Guernsey) Ltd (GSY) US Dollar Liquidity A F $ 13.03 - 0.00 0.00
Strategic Income Fund Class AA F $ 1.0833 - 0.0013 4.47
Regulated Regulated
UK Strategic Gth Inc 106.10 - 0.90 1.17 US Growth A F $ 70.13 - -0.29 0.00
Lombard Odier Funds The M&G Offshore Fund Range
US Acc 714.60 - 8.10 0.00 Absolute Ret Bond (EUR) PA € 12.02 - -0.01 0.00 US Growth AH F € 48.39 - -0.21 0.00
Corporate Bond 1306.78 1347.20 -1.00 3.11
Marlborough Fd Managers Ltd (1200)F (UK)
US Inc 98.90 - 1.12 0.00 Absolute Ret Bond (USD) PA $ 17.64 - -0.01 0.00 US Growth AX F £ 44.87 - -0.04 0.00
Global Basics 2329.86 2401.92 16.29 0.00 Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500
US Equity Income Acc ... C 120.10xd - 1.20 2.04 All Roads (CHF) PA SFr 17.70 - 0.01 0.00 www.marlboroughfunds.com US Property A F $ 67.63 - 0.46 0.00
Global Leaders 3403.70 3545.52 22.21 1.18
Authorised Inv Funds
US Equity Income £ hdg Inc ... C 102.20xd - 0.80 2.11 All Roads (USD) PA $ 11.25 - 0.01 0.00
Global High Yield Bond 997.22 1028.06 11.97 4.30 Balanced 155.77 164.66 0.35 0.05 Odey Asset Management LLP (UK)
US Equity Income Inc ... C 103.00xd - 1.00 2.06 All Roads (GBP) PA £ 11.48 - 0.01 0.00 40 Dukes Place, London, EC3A 7NH
Global Macro Bond Fund 10940.86 11279.24 11.98 0.95 Bond Income 50.41 53.34 -0.13 4.39 Morgens Waterfall Vintiadis.co Inc Order Desk: 0845 300 2106, Enquiries: 0870 607 2555
US Select Acc 111.90 - 1.00 0.00 All Roads (EUR) PA € 11.40 - 0.01 0.00 Other International Funds
North American Dividend Fund 160.01 166.68 1.26 0.58 Cash 50.16 - 0.00 0.46 Authorised Corporate Director - Capita Financial Managers
US Select Inc 110.50 - 0.90 0.00 Alpha Japan (EUR) PA F € 12.38 - 0.05 0.00 Phaeton Intl (BVI) Ltd (Est) $ 437.77 - -7.43 0.00 Authorised Inv Funds
Optimal Income Fund 142.10 146.49 0.06 2.06 Cautious Inc 83.84 88.27 0.22 1.61
US Smaller Cos Acc 403.90 - 0.90 0.00 CF Odey Continental European R Acc ♦ 725.43 - -3.28 0.18
Alpha Japan (CHF) PA F SFr 15.48 - 0.06 0.00 Recovery Fund Limited 'A' Participating Shares 10894.88 11348.83 90.04 0.37
Defensive A Inc 116.16 - 0.07 0.97
US Smaller Cos Inc 105.80 - 0.20 0.00 CF Odey Continental European I Acc ♦ 124.21 - -0.56 0.75
Alpha Japan (JPY) PA F ¥ 1468.00 - 6.00 0.00 Recovery Fund Limited 'I' Participating Shares 10900.09 11010.19 92.00 1.14
Emerging Markets 229.08 - -0.40 1.66
CF Odey Continental European I Inc ♦ 119.37 - -0.54 0.75
Alpha Japan (USD) PA F $ 17.75 - 0.07 0.00 Strategic Corporate Bond Fund 132.93 138.47 -0.07 2.81
ETF Global Growth A 149.87 - -0.21 0.00
CF Odey Opus R Inc ♦ 3827.30 - 29.35 0.00
JPMorgan Charity Funds (UK) Alternative Beta PA F SFr 119.49 - 0.19 0.00 UK Growth 1599.38 1666.02 16.13 1.12 ETF Commodity A 73.59 - 0.85 0.00
60 Victoria Embankment, London EC4Y 0JP 020 7742 9175 CF Odey Opus Fund A Accumulation 136.38 - 1.04 0.00
Alternative Beta PA F € 80.53 - 0.13 0.00
Property & Other UK Unit Trusts European Multi-Cap 266.04 - -0.28 0.20
CF Odey Opus Fund I Acc 175.76 - 1.35 0.25
Alternative Beta PA F $ 120.50 - 0.19 0.00
UK Equity Fund for Charities I...C £ 2.893940xd 2.905300 0.039420 3.29 Extra Income 80.68 85.38 0.54 4.39
Natixis International Funds (Lux) I SICAV (LUX) CF Odey Opus Fund I Inc 172.09 - 1.32 0.25
Commodities (CHF) PA SFr 5.54 - 0.01 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
Bond Fund for Charities £ 1.338180xd 1.344120 -0.001390 3.75 Far East Growth A Inc 163.72 - -0.76 1.82
CF Odey Absolute Return Fund Euro Hedged € 1.82 - 0.01 0.00
Commodities (EUR) PA € 5.61 - 0.01 0.00 FCA Recognised
Global 180.74 190.33 0.97 0.00
Harris Global Equity R/A (USD) $ 275.65 275.65 1.79 0.00 CF Odey Absolute Return Fund US Dollar Hedged $ 1.69 - 0.01 0.00
Commodities (USD) PA $ 5.79 - 0.01 0.00
Global Bond Inc 136.55 144.50 -0.17 3.23
Harris Concentrated US Equity H-N/A (GBP) £ 149.29 149.29 1.65 0.00 CF Odey Absolute Return R 306.06 - 0.76 0.00
Convertible Bd P A € 17.56 - 0.05 0.00
High Yield Fixed Interest 73.90 78.41 0.05 5.80
Harris Concentrated US Equity R/D (GBP) £ 103.60 103.60 0.68 33.75 CF Odey Absolute Return I 315.95 - 0.80 0.00
Convertible Bd Asia PA F SFr 13.76 - 0.01 0.00 MFS Investment Funds (LUX)
Multi Cap Income A Inc 163.00 - 0.84 4.13
FCA Recognised Loomis Sayles Strategic Alpha Bond Fund H-N/D(GBP) £ 99.15 99.15 0.12 1.62 CF Odey Portfolio Fund Class P Institutional Acc 107.93 - 0.40 0.00
Convertible Bd Asia PA F € 14.66 - 0.02 0.00
Blend.Research Gb.Eq.Fd. € 108.67 - 1.13 - Nano-Cap Growth A Acc 101.0457 110.9400 0.2661 -
CF Odey Portfolio Fund Class P Retail Acc 107.32 - 0.43 0.00
Convertible Bd Asia PA F $ 14.76 - 0.01 0.00
Blend.Research Gb.Eq.Fd. £ 102.90 - 0.54 - Special Situations A Acc 1161.06 1228.64 7.98 0.28
CF Odey Portfolio Fund I Acc 152.85 - 0.61 0.32
GAM Emerg. Consumer (CHF) PA SFr 12.36 - 0.06 0.00 Natixis International Funds (Dublin) I plc (IRL)
Blend.Research U.S.Core Eq.Fd. ¥ 10921.00 - 114.00 - UK Multi-Cap Growth A Inc 239.25 253.17 1.49 0.38
funds@gam.com, www.jbfundnet.com Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 CF Odey Portfolio Fund I Inc 149.94 - 0.60 0.32
Emerg. Consumer (EUR) PA € 12.49 - 0.06 0.00
Regulated Blend.Research Gb.Eq.Fd. $ 105.83 - 1.05 - UK Micro Cap Growth A 472.85 500.37 3.47 0.00 Regulated
CF Odey Portfolio Fund R Acc 148.65 - 0.60 0.08
JB BF ABS-EUR B € 105.24 - 0.00 0.00 Emerg. Consumer (USD) PA $ 12.48 - 0.06 0.00 Loomis Sayles Global Opportunistic Bond R/D (GBP) £ 13.20 13.20 -0.06 1.11
Em.Mk.Eq.Fund Euro € 117.30 - 1.48 0.00 US Multi-Cap Income 313.46 - 3.41 0.17
CF Odey Portfolio Fund R Inc 148.30 - 0.59 0.06
JB BF Abs Ret Def-EUR B € 111.78 - 0.05 0.00 Emerg.Eq. Risk Par.(EUR) PA € 8.47 - 0.06 0.00 MFM - Third Party Funds Loomis Sayles High Income R/D (USD) $ 9.17 9.17 0.03 13.21
Em.Mk.Eq.Fund Sterling £ 97.22 - 0.73 0.00
JB BF Abs Ret EM-USD B $ 117.87 - 0.11 0.00 Emerg. Eq. Risk Par.(USD) PA $ 6.53 - 0.04 0.00 Junior Oils 82.08 86.86 0.90 0.00 Loomis Sayles Multisector Income R/D (GBP) £ 13.02 13.02 -0.03 4.49
Em.Mk.Eq.Fd.US Dollar $ 98.83 - 1.20 0.00
Emerg. Loc.Cur.&Bds DH (CHF) PASFr 8.06 - 0.00 0.00 Junior Gold C Acc 21.29 - 0.37 0.00 Odey Asset Management LLP (CYM)
JB BF Abs Ret-EUR B € 131.33 - 0.09 0.00 Em.Mk.Loc.Ccy Debt Fd.FC ¥ 8461.00 - 48.00 5.88
Regulated
JB BF Abs Ret Pl-EUR B € 130.35 - 0.12 0.00 Emerg.Loc.Cur.Bd.Fdt PA SFr 8.55 - 0.02 0.00 MFM Artorius Fund 148.70 - -0.16 0.18
Em.Mk.Loc.Ccy Debt Fd.FD ¥ 10538.00 - 79.00 5.83 Natixis International Funds (UK) OEI MAC Inc A £ 351.51 - 0.79 0.00
JB BF EM Corporate-USD B $ 108.51 - -0.01 0.00 Emerg.Loc.Cur.Bd.Fdt PA € 11.59 - 0.06 0.00 MFM Bowland 154.05 166.54 -1.27 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
Gb.Conc.Eq.Fd.Euro € 290.48 - 2.57 0.00 OEI Mac Inc B £ 190.95 - 1.28 0.00
Authorised Funds
JB BF EM Infl Link-USD B $ 87.61 - 0.63 0.00 Emerg.Loc.Cur.Bd.Fdt PA $ 8.88 - 0.04 0.00 MFM Hathaway Inc 106.16 111.16 -1.37 1.53
Gb.Conc.Eq.Fd.Sterl.UK T £ 171.08 - 0.64 0.00 OEI MAC Inc USD $ 1881.72 - 4.11 0.00
H2O MultiReturns Fund N/A (GBP) $ 12.53 12.53 0.01 1.77
JB BF EM Inv Grade-USD B $ 100.05 - 0.22 0.00 Euro BBB-BB Fdt PA SFr 15.64 - -0.01 0.00 MFM SGWM Managed A Acc 125.01 - 0.39 0.16
Gb.Conc.Eq.Fd.Sterling £ 259.25 - 0.96 0.00 Odey European Inc EUR € 818.00 - -10.35 0.00
H2O MultiReturns Fund I/A (GBP) £ 1.34 - 0.01 2.01
JB Emerging (EUR)-EUR B € 334.60 - 0.99 0.00 Euro BBB-BB Fdt PA € 12.41 - -0.01 0.00 MFM Techinvest Special Situations Acc 128.44 - -0.34 0.08
Gb.Conc.Eq.Fd.US $ 202.83 - 1.70 0.00 Odey European Inc A GBP £ 313.42 - -3.87 0.00
Harris Associates Global Concentrated Equity Fund N/A (GBP) £ 1.09 - 0.01 -
JB Emerging (USD)-USD B $ 407.45 - 1.62 0.00 Euro BBB-BB Fdt PA £ 10.95 - -0.01 0.00 MFM Techinvest Technology Acc 371.09 - -6.61 0.00
Gb.Eq.Hdg Fd.Euro IRE T € 191.68 - 1.50 0.00 Harris Associates Global Concentrated Equity Fund I/A(GBP) £ 1.09 - 0.01 - Odey European Inc B GBP £ 177.87 - -2.19 0.00
JB BF Local EM-USD B $ 267.02 - 0.91 0.00 Euro BBB-BB Fdt PA $ 17.60 - -0.02 0.00 MFM UK Primary Opportunities A Inc 328.32 - 3.03 1.34
Gb.Eq.Euro Hdg Fd. € 271.76 - 2.12 0.00 Loomis Sayles Strategic Income H-N/D (GBP) £ 0.95 - 0.00 4.47 Odey European Inc USD $ 376.76 - -4.60 0.00
Euro Credit Bd PA F € 12.91 - -0.02 0.00 Slater Investments Ltd - Investment Adviser
JB BF Total Ret-EUR B € 99.26 - 0.04 0.00 Gb.Eq.Fund Euro € 297.49 - 2.56 0.00 Giano Capital EUR Inc € 4497.23 - 53.72 0.00
MFM Slater Growth 396.67 420.87 2.65 0.11 Loomis Sayles Strategic Income H-N/A (GBP) £ 1.03 - 0.00 4.63
JB EF Abs Ret Eur-EUR B € 120.05 - 0.03 0.00 Euro Government Fdt PA € 12.44 - -0.02 0.00
Gb.Eq. Fd Euro IRE T € 188.13 - 1.62 0.00 MFM Slater Income A Inc 162.75 - 0.79 3.54 Loomis Sayles US Equity Leaders N/A (GBP) £ 1.42 - 0.01 0.29
JB EF Euro Value-EUR B € 201.37 - -0.95 0.00 Euro Inflation-Lk Fdt PA € 12.00 - 0.00 0.00
Gb.Eq.Fd.Sterling UK T £ 211.88 - 0.74 0.00 MFM Slater Recovery 170.16 180.54 0.94 0.10 Loomis Sayles US Equity Leaders I/A (GBP) £ 1.40 - 0.01 0.49 Odey Asset Management LLP (IRL)
JB EF Japan-JPY B ¥ 18735.00 - 220.00 0.00 Euro Resp.Corp. Fdt PA € 18.24 - -0.02 0.00
Gb.Eq.Fd.US Dollar $ 328.05 - 2.66 0.00 FCA Recognised
JB EF Luxury B-EUR B € 238.83 - 2.53 0.00 Europe High Conviction PA € 12.12 - 0.11 0.00 Odey Pan European EUR R € 360.26 - 4.64 0.00
Gb.Eq.Fund Sterling £ 209.66 - 0.73 0.00
Eurozone Small&Mid Caps PA € 52.94 - 0.50 0.00 Marlborough International Management Limited (GSY) NatWest (2230)F (UK)
Odey Allegra European EUR O € 280.99 - 3.71 0.00
JB Ms EF Special Val. EUR/A € 147.67 - 1.56 0.75 Gb.Val.Ex-Jap.Fd.USD $ 121.76 - 1.18 0.00 Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 PO Box 23873, Edinburgh EH7 5WJ**
JB Strategy Balanced-CHF/B SFr 155.13 - 0.63 0.00 Fdmt.Eq.L/S SH Sd EUR PA € 11.13 - 0.03 - Enquiries: 0800 085 5588 Odey Allegra International EUR O € 185.64 - 1.62 0.00
Gb.Val.Ex-Japan Fd.Yen ¥ 14824.00 - 168.00 0.00 FCA Recognised
Fdmt.Eq.L/S SH Sd USD PA $ 11.13 - 0.02 - Authorised Inv Funds
JB Strategy Balanced-EUR € 160.87 - 0.78 0.00 Marlborough North American Fund Ltd £ 30.34 30.64 -0.10 0.00 Odey Allegra Developed Markets USD I $ 135.86 - 1.21 0.00
Low Volatility Gb.Eq.Fd. € 106.09 - 0.78 - Series 1(Minimum initial investment 16375,000)
JB Strategy Balanced-USD/B $ 133.86 - 0.59 0.00 Gbl.Gvt.Fdmt PA € 10.54 - 0.00 0.00 Marlborough Tiger Fund Ltd F £ 27.06 27.33 0.17 0.00 Odey European Focus Fund € 19.04 - 0.11 0.00
Low Volatility Gb.Eq.Fd. £ 100.46 - 0.21 - United Kingdom Equity Index Fund £ 13.00 - 0.14 2.63
JB Strategy Growth-CHF/B SFr 96.34 - 0.60 0.00 Gbl.Gvt.Fdmt.(CHF) PA SFr 22.41 - 0.12 0.00 Odey Atlas Fund GBP I S £ 1.26 - 0.01 0.00
Low Volatility Gb.Eq.Fd. $ 103.31 - 0.70 - UK Specialist Equity Inc £ 19.83 - 0.10 0.40
JB Strategy Growth-EUR € 121.82 - 0.76 0.00 Gbl.Gvt.Fdt.SH (CHF) PA SFr 26.62 - 0.01 0.00 Odey Giano European Fund EUR R € 116.33 - 0.03 0.00
Marwyn Asset Management Limited (CYM) Contl Europe Spec Equity £ 16.24 - 0.04 0.00
JB Strategy Inc-CHF/B SFr 122.37 - 0.26 0.00 Gbl.5B Fdmt (EUR) PA € 11.94 - 0.01 0.00 Regulated Odey Naver Fund EUR I € 125.28 - 0.74 0.00
US Spec Equity Fund £ 13.78 - 0.06 0.00
Gbl.5B Fdmt (CHF) PA SFr 10.37 - -0.03 0.00
MFS Meridian Funds SICAV (LUX) Marwyn Value Investors £ 557.68 - 39.66 0.00
JB Strategy Inc-EUR/B € 164.05 - 0.46 0.00 Odey Odyssey USD I $ 163.41 - 0.05 0.00
Regulated Japan Specialist Fund X £ 9.73 - 0.01 0.00
JB Strategy Inc-USD/B $ 149.59 - 0.36 0.00 Gbl.5B Fdmt SH (USD) PA $ 11.01 - -0.01 0.00 Absolute Return A1 € 20.29 - 0.18 0.00 Odey Orion Fund EUR I € 127.79 - 0.64 0.00
Pacific Basin Specialist Equity Fund £ 22.51 - -0.06 0.64
Generation Global (CHF) PA F SFr 13.56 - 0.06 0.00 Asia ex-Japan A1 $ 24.24 - 0.17 0.00 McInroy & Wood Portfolios Limited (UK) Odey Swan Fund EUR I € 94.67 - -0.44 0.00
UK Sovereign Bd Index Fund £ 10.83 - -0.02 2.63
Generation Global (EUR) PA F € 21.01 - 0.16 0.00 Easter Alderston, Haddington, EH41 3SF 01620 825867
Bond A1 $ 10.37 - 0.00 0.00 Odey European Absolute Return GBP S £ 96.57 - 0.48 0.00
Authorised Inv Funds UK Specialist Equity Income Fund £ 10.00 - 0.04 3.69
Generation Global (USD) PA F $ 15.80 - 0.11 0.00 China Equity Fd A1 $ 10.14 - 0.12 0.00 Balanced Fund Personal Class Units 3912.60 - 10.80 1.90 Global Spec Inv Grade Bd Fund GBP £ 9.98 - 0.00 3.22
Global Energy (USD) PA F $ 7.54 - 0.21 0.00 Continental European Eqty A1 € 18.53 - 0.12 0.00 Income Fund Personal Class Units 2382.20xd - 11.70 2.89 Inflation Lkd Sov Bd Fund £ 12.54 - -0.04 0.68 Odey Wealth Management (CI) Ltd (IRL)
Golden Age (CHF) PA F SFr 23.43 - 0.26 0.00 Emer Mkts Debt Lo Curr Fd A1 $ 11.89 - 0.04 0.00 www.odey.com/prices
Emerging Markets Fund Personal Class Units 1665.70 - 4.00 2.34
FCA Recognised
Golden Age (EUR) PA € 15.89 - 0.18 0.00 Emerging Markets Debt A1 $ 33.39 - 0.09 0.00 Smaller Companies Fund Personal Class Units 3614.20 - 3.10 1.71
Asset Management
Odey Opportunity EUR I € 222.65 - 0.90 0.00
Asset Management Asset Management
Friday 31 July 2015 ★ FINANCIAL TIMES 27

MANAGED FUNDS SERVICE

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

Saracen Global Income & Growth Fund A - Acc £ 1.19 - 0.01 2.92 Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 88268.00 - -781.00 0.00 UBS Sterling Corporate Bond Indexed Fund 51.07 - -0.06 3.36

Saracen Global Income & Growth Fund A - Dist £ 1.10 - 0.00 2.98 Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 58727.00 - -519.00 0.00 UBS Multi Asset Income B Inc (net) £ 0.50 - 0.00 3.71
Omnia Fund Ltd Pimco Fds: Global Investors Series Plc (IRL) Purisima Investment Fds (CI) Ltd (JER) S W Mitchell Capital LLP (IRL)
Other International Funds PIMCO Europe Ltd,11 Baker Street,London W1U 3AH Regulated Regulated Saracen Global Income and Growth Fund -Acc # £ 1.47 - 0.01 3.28 Strategic China Panda Fund USD $ 2371.05 - 18.86 0.00 UBS UK Equity Income B Inc Net £ 0.41 - 0.01 4.74
Estimated NAV $ 953.55 - -63.26 0.00 http://gisnav.pimco-funds.com/ PCG B X 171.72 - 1.37 0.00 SWMC European Fund B EUR € 16628.80 - 100.48 0.00
Saracen Global Income and Growth Fund -Dist # £ 1.30 - 0.01 3.37 Strategic China Panda Fund Hedged EURO € 2303.92 - 18.39 0.00 Corporate Bond UK Plus B Inc Net £ 0.52 - 0.00 4.00
Dealing: +44 20 3640 1000
PIMCO Funds: +44 (0)20 3640 1407 PCG C X 169.43 - 1.34 0.00 SWMC UK Fund B £ 11910.50 - -40.39 0.00
Saracen UK Income Fund - Acc £ 1.04 - 0.01 - Strategic China Panda Fund Hedged Sterling £ 2337.28 - 18.70 0.00 UBS Global Allocation (UK) B Acc £ 1.10 - 0.01 1.81
FCA Recognised SWMC Small Cap European Fund B EUR € 14076.39 - 35.32 0.00
Saracen UK Income Fund - Dist £ 1.03 - 0.01 - Strategic Euro Bond Accumulating Class CHFSFr 995.80 - 1.00 0.00 UBS Global Enhanced Equity Income C Inc £ 0.48 - 0.01 -
Asia Local Bond Fund - Inst Acc $ 9.78 - 0.01 0.00
Putnam Investments (Ireland) Ltd (IRL) SWMC Emerging European Fund B EUR € 9411.56 - 79.86 0.00 . Strategic Euro Bond Institutional Class EUR € 1017.64 - 1.07 0.00 UBS US Growth Fund B Acc £ 1.51 - 0.01 0.00 Yuki International Limited (IRL)
Capital Securities Inst Acc $ 15.04 - 0.02 0.00 Regulated For Save & Prosper please see Countrywide Assured Tel +44-20-7269-0207 www.yukifunds.com
Strategic Euro Bond Fund Accumulating Class Shares € 1142.27 - 1.19 0.00 UBS Emerging Markets Equity Income B Inc £ 0.39 - 0.00 5.36 Regulated
Commodity Real Return Fund Inst Acc $ 6.85 - 0.01 0.00 Putnam New Flag Euro High Yield Plc - E € 1022.64 - 0.62 4.78
Strategic Euro Bond Fund Distributing Class Shares € 1030.91 - 1.07 2.90 Yuki Mizuho Umbrella Fund
Credit Absolute Return Fund Inst Acc $ 11.48 - 0.02 0.00 Schroder Property Managers (Jersey) Ltd Yuki Mizuho Japan Dynamic Growth ¥ 7074.00 - 44.00 0.00
Strategic Global Bond RMB Acc CNY 1091.03 - 2.69 0.00
Diversified Income - Inst Acc $ 19.64 - 0.06 0.00 Other International Funds Unicapital Investments (LUX)
Optima Fund Management Rathbone Unit Trust Mgmt (1200)F (UK) Yuki Mizuho Japan Large Cap ¥ 7448.00 - 47.00 0.00
Indirect Real Estate SIRE £ 129.51 135.42 1.03 3.14 Strategic Global Bond USD Acc $ 1045.65 - 2.81 0.00 Regulated
Other International Funds Diversified Income Durat Hdg Fund Inst Acc $ 11.59 - 0.05 0.00 PO Box 9948, Chelmsford, CM99 2AG
Investments III € 27.41 - 0.58 0.00 Yuki Japan Low Price ¥ 28906.00 - 72.00 0.00
JENOP Global Healthcare Fund Ltd $ 17.71 - 0.47 0.00 Order Desk: 0845 300 2101, Enquiries: 0207 399 0399 Strategic US Momentum and Value Fund $ 868.29 - 11.55 0.00
EM Fundam.Ind StocksPLUS Fund Inst Acc $ 9.74 - 0.12 0.00 Yuki Japan Value Select ¥ 13285.00 - 41.00 0.00
Authorised Inv Funds Strategic US Momentum and Value EUR Hedged Class EUR € 606.07 - 8.05 0.00
Investments IV - European Private Eq. € 290.10 304.61 8.08 -
OPTIKA Fund Limited - Cl A $ 118.88 - 7.37 -
Emerging Asia Bond Fund Inst Acc $ 9.97 - 0.03 0.00 Blue Chip Income Inc 151.53 156.50 1.11 4.14 RobecoSAM (LUX) Scottish Friendly Asset Managers Ltd (UK) YMR Umbrella Fund
Investments IV - Global Private Eq. € 437.05 458.90 8.57 -
Optima Fd NAV $ 96.26 - 1.21 0.00 Tel. +41 44 653 10 10 http://www.robecosam.com/ Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000 Strategic US Momentum and Value CHF Hedged Class CHFSFr 604.73 - 8.03 0.00
Emerging Multi-Asset Fund Inst Acc $ 8.58 - -0.01 0.00 Blue Chip Income Acc 225.85 233.03 1.65 4.02 YMR N Growth ¥ 17255.00 - 114.00 0.00
Regulated Authorised Inv Funds
Optima Discretionary Macro Fund Limited $ 87.21 - -1.06 0.00 Yuki Asia Umbrella Fund
Emerging Local Bond - Inst Acc $ 11.69 - 0.05 0.00 Ethical Bond Inc 91.33 93.30 -0.09 5.16 Managed Growth ♦ 240.60 - 1.00 0.00
RobecoSAM Sm.Energy/A £ 11.37 - 0.12 1.25
The Dorset Energy Fd Ltd NAV (Est) $ 32.17 - -2.24 0.00 Taube Hodson Stonex Ptnrs UT (1200)F (UK) Unicorn Asset Management Ltd (UK) Yuki Japan Rebounding Growth Fund ¥ 24109.00 - 115.00 0.00
Emerging Markets Bond - Inst Acc $ 38.90 - 0.16 0.00 Ethical Bond Acc 171.47 174.85 -0.16 5.03 UK Growth ♦ 263.30 - 1.30 0.00 PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287
RobecoSAM Sm.Materials/A £ 122.25 - 1.60 1.96 50 Bank Street, Canary Wharf, London E14 5NT
Platinum Fd Ltd $ 90.57 - 1.60 0.00
Emerging Markets Corp.Bd Fund Inst Acc F $ 13.34 - 0.01 0.00 Authorised Inv Funds
Global Opportunities Acc 138.75 143.13 1.07 0.12 RobecoSAM Gl.Small Cap Eq/A £ 80.31 - 0.46 1.68 Admin: 50 Bank Street, Canary Wharf, London E14 5NT
Platinum Fd Ltd EUR € 17.61 - 0.30 0.00 UK Growth A Inc 393.35 - 4.05 0.00
Emerging Markets Curr.Fd- Inst Acc $ 12.29 - 0.05 0.00 Income Inc 872.66 902.87 9.71 4.01
Dealing & Enquiries: 0870 870 8433 Zadig Gestion (Memnon Fund) (LUX)
Platinum Japan Fd Ltd $ 56.79 - 1.76 0.00
RobecoSAM Sustainable Gl.Eq/B € 188.10 - 1.35 0.00 SIA (SIA Funds AG) (LUX) Authorised Inv Funds FCA Recognised
Mastertrust A Inc X F 368.21 - 0.49 0.00
Euro Bond - Inst Acc € 22.55 - -0.01 0.00 Income Acc 1326.19 1370.64 14.76 3.84 Regulated THS Growth & Value Funds
RobecoSAM S.HealthyLiv/B € 190.82 - 1.45 0.00 Memnon European Fund I GBP £ 114.11 - 2.13 0.00
Optima Partners Global Fd $ 15.04 - 0.19 0.00 LTIF Classic € 355.77 - 3.72 0.00 UK Growth B Inc 395.70 - 4.06 0.24
Euro Credit - Inst Acc € 14.71 - 0.00 0.00 Multi Asset Enhanced Growth Acc 125.28 - 0.53 0.00 International
RobecoSAM S.Water/A £ 165.27 - 0.20 2.25
Optima Partners Focus Fund A $ 17.50 - 0.24 0.00 LTIF Natural Resources € 79.34 - 1.93 0.00 IGV - Inc A 343.20 - -1.00 2.32 Mastertrust B Inc X F 331.62 - 0.45 0.39
Euro Income Bond - Inst Acc F € 13.04 - 0.02 0.00 Multi Asset Strategic Growth inc 150.01 - 0.55 1.36
LTIF Stability A ACCU € 176.73 - 1.33 - IGV - Inc B 343.00 - -1.00 1.52 Outstanding British Cos A Acc X F 249.55 - 0.30 0.44 Zebedee Capital Partners LLP (CYM)
Euro Long Average Duration - Inst Acc € 21.28 - -0.11 0.00 Multi Asset Strategic Growth acc 158.52 - 0.58 1.35 Regulated
Orbis Sicav (LUX) IGV - Acc X 419.60 - -1.20 1.80 Outstanding British Cos B Acc X F 260.01 - 0.32 1.14
Euro Low Duration Fund Inst Acc € 11.29 - 0.00 0.00 Multi Asset Total Return inc 126.55 - 0.07 1.84 Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00
Regulated UK Smaller Cos A Inc X F 444.64 - 3.62 0.08
Euro Real Return - Inst Acc € 13.40 - 0.01 0.00 IGV - Acc Y 449.40 - -1.30 2.28
Orbis Japan Equity (Yen) ¥ 4766.00 - 15.00 0.00 Multi Asset Total Return acc 138.67 - 0.08 1.81 SIA (SIA Funds AG) (CH) Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00
Other International Fds IGV - Acc Z 417.10 - -1.30 1.53 UK Smaller Cos B Inc X F 436.87 - 3.54 0.77
Euro Short-Term Inst Acc € 12.29 - 0.00 0.00 Recovery Inc 436.37 453.03 3.72 2.30 Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00
Orbis Japan Equity (Euro) € 31.52 - 0.10 0.00 LTIF Stability Growth SFr 201.70 - -2.70 - European UK Income A Acc X F 265.87 - 1.76 4.38
Euro Ultra Long Duration - Inst Acc € 27.94 - -0.23 0.00 Recovery Acc 518.03 537.36 4.42 2.27
Orbis Asia ex-Japan - Investor Shares $ 21.77 - -0.27 0.00

Orbis Global Equity - Investor Shares € 159.66 - -4.35 0.00

Global Advantage - Inst Acc $ 12.27 - 0.02 0.00 Strategic Bond Ret Acc £ 1.18 1.20 0.00 3.85
LTIF Stability Inc Plus SFr 179.10 - -2.40 5.71 EGV - Acc S

EGV - Acc Z
281.00

281.00
-

-
-2.20

-2.20 0.81
- UK Income A Inc X F

UK Income B Acc X F
240.91

281.62
-

-
1.59 4.53

1.87 4.35
Money Market
Global Advantage Real Return Fund Inst Acc $ 8.91 - 0.04 0.00 Strategic Bond Ret Inc £ 1.05 1.06 0.00 3.89
Global Bond - Inst Acc $ 27.76 - 0.00 0.00 Smith & Williamson Investment Management (1200)F (UK) Continental UK Income B Inc X F 255.31 - 1.70 4.50 Trusts and
Oryx International Growth Fund Ltd Santander Asset Management UK Limited (1200)F (UK) 25 Moorgate, London, EC2R 6AY 020 7131 8100 CGV Acc S 114.80 - -1.10 -
Other International Funds
Global Bond Ex-US - Inst Acc $ 19.32

Global Fundam.Index StocksPLUSInst Acc $ 11.86

-

-
-0.01 0.00

0.14 0.00
287 St Vincent Street, Glasgow G2 5NB, 0845 6000 181
Authorised Funds
www.sandwfunds.com
Authorised Inv Funds
CGV Acc X 114.20 - -1.70 -
Value Partners Hong Kong Limited (IRL)
Bank Accounts Gross
NAV (Fully Diluted) £ 6.18 - 0.11 0.00
Santander Atlas Range European Growth Trust A Class 519.60 - -3.30 0.72 CGV Inc A £ 1.15 - -0.01 - www.valuepartners.net, fis@vp.com.hk Gross Net AER Int Cr
Global High Yield Bond - Inst Acc $ 20.25 - 0.07 0.00
Santander Atlas Port 3 Acc Ret 149.10 - 0.20 - CGV Inc B £ 1.15 - -0.01 - Regulated
Far Eastern Income and Growth Trust A Class 417.00 - -0.80 3.16
Global Investment Grade Credit - Inst Income $ 12.30 - 0.00 3.62 Value Partners Classic Equity Fund USD Z Unhedged $ 11.74 - -0.10 0.00
Santander Atlas Port 3 Inc Ret 103.80 - 0.20 - CCLA Investment Management Ltd
Fixed Interest Trust A Class 122.00 - -0.20 3.71 Senator House 85 Queen Victoria Street, London EC4V 4ET
Global Investment Grade Credit Fund Inst Acc € € 11.73 - 0.01 0.00 Value Partners Classic Equity Fund CHF HedgedSFr 12.42 - -0.12 0.00
Santander Atlas Port 3 Acc Inst 163.70 - 0.30 - CBF Church of England Deposit Fund 0.50 - 0.50 Qtr
Global Investment Grade Credit Fund Inst Acc $ $ 16.65 - 0.00 0.00 Robeco Asset Management (LUX) Global Gold and Resource Trust A Class 127.30 - 2.30 0.00 The Hartford International Funds (IRL)
Value Partners Classic Equity Fund EUR Hedged € 12.51 - -0.13 0.00
Coolsingel 120, 3011 AG Rotterdam, The Netherlands. Santander Atlas Port 4 Acc Ret 182.30 - 0.60 - Regulated
MM Endurance Balanced Fund A Class 217.00 - 0.50 1.17
Global Multi-Asset - Inst Acc $ 15.10 - 0.07 0.00 Value Partners Classic Equity Fund GBP Hedged £ 12.78 - -0.13 0.00
www.robeco.com/contact Santander Atlas Port 4 Inc Ret 131.70 - 0.40 - Gbl Govt Bond (Ex Japan) Index (GBP) £ 1540.46 - -8.42 0.00 CCLA Fund Managers Ltd
MM Global Investment Fund A Class 2206.00 - 0.00 1.74 Senator House 85 Queen Victoria Street, London EC4V 4ET
Global Real Return - Inst Acc $ 18.17 - -0.01 0.00 FCA Recognised Value Partners Classic Equity Fund GBP Unhedged £ 13.00 - 0.08 0.00
Santander Atlas Port 4 Acc Inst 165.40 - 0.50 - UK Corporate Bond £ 1551.42 - -2.64 0.00
Asia-Pacific Equities (EUR) € 141.64 - 1.06 0.00 North American Trust A Class 1729.00 - 18.00 0.00 COIF Charities Deposit Fund 0.45 - 0.45 Qtr
Permal Investment Mgmt Svcs Ltd Income Fund Inst Acc $ 12.32 - 0.01 0.00 Value Partners Classic Equity USD Hedged $ 14.54 - -0.14 0.00
Santander Atlas Port 5 Acc Ret 194.70 - 0.70 - Gilt £ 1556.47 - -0.82 0.00
www.permal.com Chinese Equities (EUR) € 81.17 - 0.50 0.00 Oriental Growth Fund A Class 146.40 - -0.40 1.00
Inflation Strategy Fund Inst Acc $ 9.25 - 0.04 0.00 Global Eq (Ex Japan) Index Fund ¥ 1.43 - 0.01 0.00 Value Partners Health Care Fund RMB Class Z UnhedgedCNY 9.51 - 0.11 -
Other International Funds Santander Atlas Port 5 Acc Inst 165.10 - 0.60 -
Em Stars Equities (EUR) € 181.70 - 2.13 0.00 UK Equity Growth Trust A Class 429.30 - 4.00 0.78
Offshore Fund Class A US $ Shares Low Average Duration - Inst Acc $ 14.80 - 0.01 0.00 Value Partners Health Care Fund HKD Class A UnhedgedHK$ 9.40 - 0.10 -
Investment Holdings N.V. $ 5732.78 - -63.26 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 13.02 - 0.04 0.00 Emerging Markets Equities (EUR) € 153.86 - 1.94 0.00
Santander Atlas Port 6 Acc Ret 266.50 - 1.10 -
UK Equity Income Trust A Class 231.60 - 2.00 6.01
Global Eq (ex Japan) Class HJ4 ¥ 1.48 - 0.01 0.00
Data Provided by
Global Eq (ex Japan) Class JP5 ¥ 1.66 - 0.02 0.00 Value Partners Health Care Fund USD Class A Unhedged $ 9.44 - 0.10 -
Santander Atlas Port 6 Acc X 190.20 - 0.70 -
Macro Holdings Ltd $ 4158.88 - -62.99 0.00 StocksPLUS{TM} - Inst Acc $ 23.88 - 0.17 0.00 Flex-o-Rente (EUR) € 109.06 - 0.00 0.00
Santander Atlas Port 6 Acc Inst 163.60 - 0.70 - Global Eq Ex Japan Index Fund (Hedge) ¥ 1.52 - 0.02 0.00
Fixed Income Holdings N.V. $ 386.17 - -13.77 6.21 Total Return Bond - Inst Acc $ 27.19 - -0.01 0.00 Glob.Consumer Trends Equities (EUR) € 161.25 - 0.59 0.00 Smith & Williamson Fd Admin Ltd (1200)F (UK)
Santander Atlas Port 7 Acc Ret 207.90 - 0.80 - Gbl Govt Bond (Ex Japan) Index ¥ 1.36 - 0.00 0.00 Veritas Asset Management LLP (IRL)
Jubilee Absolute Return Fund $ 157.82 - -0.85 0.00 High Yield Bonds (EUR) € 126.58 - 0.72 0.00 25 Moorgate, London, EC2R 6AY 0141 222 1150
UK Corporate Bond - Inst Acc £ 17.12 - -0.02 0.00 Gbl Govt Bond (ex Japan) Class JP4 ¥ 1.34 - 0.00 0.00 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Santander Atlas Port 7 Acc Inst 164.70 - 0.60 - Authorised Inv Funds
Lux -O- Rente (EUR) € 138.51 - -0.26 0.00 Veritas Funds Plc
UK Long Term Corp. Bnd Inst-Inst Acc £ 18.92 - -0.06 0.00 S&W Deucalion Fd (OEIC) 2201.00 - 8.00 0.19 Japan Equity Index Fund ¥ 1.13 - 0.01 0.00
Authorised Inv Funds www.veritas-asset.com
UK Real Return - Inst Acc £ 22.86 - -0.09 0.00 New World Financials (EUR) € 57.63 - 0.57 0.00
Max 70% Shs Acc Ret 167.30 - 0.70 - S & W Magnum 381.90 403.80 2.10 1.89 Japan Equity Class JP3 ¥ 1.37 - 0.01 0.00 +353 1 635 6799
UK Sterling Long Average Duration - Inst Acc £ 21.34 - -0.09 0.00 US Premium Equities (EUR) € 186.76 - 1.81 0.00
Max 70% Shs Inc Ret 141.70 - 0.60 - S & W Marathon Trust 190.80 201.90 1.10 1.87
FCA Recognised
Institutional
www.morningstar.co.uk
UK Sterling Low Average Duration - Inst Acc £ 14.07 - 0.01 0.00 US Premium Equities (USD) $ 209.22 - 2.02 0.00
Investments Inc Acc Ret 153.70 - -0.10 - Charity Value and Income Fund Acc 139.60 140.30 1.00 4.52 Veritas Asian Fund A USD H $ 314.34 - -1.81 0.62 Data as shown is for information purposes only. No
The National Investor (TNI)
Unconstrained Bond - Inst Acc $ 12.24 - 0.02 0.00 Investments Inc Inc Ret 102.30 - -0.10 - Charity Value and Income Fund Inc 95.06 95.58 0.66 4.64 www.tni.ae
offer is made by Morningstar or this publication.
Veritas Asian Fund A GBP H £ 371.87 - -1.91 0.47
US Fundam.Index StocksPLUS Inst Inc $ 12.69 - 0.13 0.00 Royal Bank of Scotland (2230)F (UK) Other International Funds
Equity Inc Inc Inst 254.10 - 2.30 - Veritas Asian Fund A EUR H € 332.19 - 0.27 0.39
Pictet Asset Management (Europe) SA (LUX) PO Box 23873, Edinburgh EH7 5WJ 0800 917 7072 TNI Blue Chip UAE Fund * AED 11.67 - -0.02 0.00
15, Avenue J.F. Kennedy L-1855 Luxembourg US High Yield Bond Fund Inst Acc $ 28.06 - 0.13 0.00 Equity Inc Inc Ret 218.40 - 1.90 -
Authorised Inv Funds Standard Life Wealth (JER) TNI Funds Ltd (BMU)
Veritas China Fund A USD $ 144.49 - -1.33 0.00
Tel: 0041 58 323 3000 Series 5 (Minumum Initial Investment £75,000) N&P UK Gwth Inc Ret 166.60 - 2.00 - PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
MENA Hedge Fund $ 991.04 - -16.68 0.00 Veritas China Fund A GBP £ 149.28 - -1.35 0.00
FCA Recognised FCA Recognised
United Kingdom Equity Index Fund £ 16.26 - 0.17 2.63 Stckmkt 100 Track Gwth Acc Inst 96.00 - 1.38 -
Standard Life Offshore Strategy Fund Limited TNI Funds Plc (Ireland) Veritas China Fund A EUR € 143.56 - -1.37 0.00
Guide to Data
Pictet-Absl Rtn Fix Inc-HI EUR € 106.56 - 0.05 0.00
UK Specialist Equity Inc £ 19.84 - 0.10 0.40 Stckmkt 100 Track Gwth Acc Ret 177.60 - 2.60 - MENA UCITS Fund * $ 1327.60 - -0.25 0.00
Pictet-Absl Rtn Glo Div-I EUR F € 125.95 - 0.23 0.00 Bridge Fund £ 1.6256 - 0.0100 2.04 Veritas Global Equity Income Fund D USD $ 126.06 - 0.52 4.44
Contl Europe Specialist Fund £ 23.99 - 0.07 0.00 UK Growth Acc Inst 291.10 - 3.30 -
Pictet-Agriculture-I EUR F € 205.02 - 1.84 0.00 Diversified Assets Fund £ 1.1886 - 0.0020 2.96 Veritas Global Equity Income Fund D EUR € 223.39 - 2.76 3.73
Japan Specialist Fund X £ 14.73 - 0.01 0.00 UK Growth Acc Ret 338.00 - 3.80 - The fund prices quoted on these pages are supplied by
Pictet-Asian Equities Ex Japan-I USD F $ 210.78 - -1.76 0.00 Global Equity Fund £ 1.8741 - 0.0117 1.08 Thesis Unit Trust Management Limited (UK) Veritas Global Equity Income Fund D GBP £ 156.80 - 0.88 4.43
the operator of the relevant fund. Details of funds
US Spec Equity Fund £ 18.62 - 0.08 0.00 UK Growth Inc Ret 224.90 - 2.60 - Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP
Global Balanced Fund - Income Units £ 1.3500 - 0.0065 1.90 Veritas Global Focus Fund D USD $ 26.88 - 0.22 2.71 published on these pages, including prices, are for the
Pictet-Asian Local Currency Debt-I USD F $ 150.90 - -0.93 0.00 Authorised Funds
Platinum Capital Management Ltd Pacific Basin Specialist Equity Fund £ 39.69 - -0.11 0.66 Managed OEIC purpose of information only and should only be used
Pictet-Biotech-I USD F $ 952.53 - -11.27 0.00 Other International Funds Global Balanced Fund - Accumulations Units £ 1.5676 - 0.0076 1.88 Veritas Global Focus Fund D EUR € 24.70 - 0.41 2.51 as a guide. The Financial Times Limited makes no
TM New Court Fund A 2011 Inc £ 13.12 - 0.02 0.00
UK Sovereign Bd Index Fund £ 10.61 - -0.03 2.63 Glob Em Shs Port Acc Ret 160.30 - 0.40 - representation as to their accuracy or completeness
Pictet-Brazil Index I USD $ 47.22 - 1.46 0.00 Platinum All Star Fund - A $ 118.32 - - - Global Fixed Interest Fund £ 1.0156 - 0.0009 3.44 Veritas Global Focus Fund D GBP £ 29.20 - 0.28 2.42
TM New Court Fund - A 2014 Acc £ 13.15 - 0.02 0.00 and they should not be relied upon when making an
Inflation Lkd Sov Bd Fund £ 12.78 - -0.04 0.68 Max 70% Shs Port Acc Ret 258.60 - 1.00 -
Platinum Global Dividend Fund - A $ 58.53 - - - Sterling Fixed Interest Fund £ 0.8457 - -0.0009 3.10 Veritas Global Focus Fund A GBP £ 28.15 - 0.27 2.20 investment decision.
Pictet-CHF Bonds I CHF SFr 503.61 - -0.45 0.00 TM New Court Equity Growth Fund - Inc £ 13.23 - 0.02 0.00
UK Specialist Equity Income Fund £ 9.98 - 0.04 3.69 Max 70% Shs Port Acc X 185.70 - 0.70 -
Pictet-China Index I USD $ 116.11 - 0.81 0.00 Platinum Global Dividend UCITS Fund $ 69.72 - 0.46 6.99 UK Equity Fund £ 1.9996 - 0.0181 2.63 Veritas Global Focus Fund A EUR € 14.37 - 0.24 1.99 The sale of interests in the funds listed on these pages
Global Emerg Mkts Equity Fund X £ 10.98 - -0.02 0.49 Max 70% Shs Port Acc S 150.10 - 0.50 - may, in certain jurisdictions, be restricted by law and
Pictet-Clean Energy-I USD F $ 89.53 - 0.63 0.00 Platinum Essential Resources UCITs Fund $ 5.95 - 0.08 - Veritas Global Focus Fund A USD $ 25.89 - 0.21 2.28 the funds will not necessarily be available to persons
Global Spec Inv Grade Bd Fund GBP £ 9.83 - 0.00 3.22 Investment Port Acc Ret 230.90 - -0.10 - in all jurisdictions in which the publication circulates.
Pictet-Digital Communication-I USD F $ 259.66 - -1.06 0.00 Platinum Maverick Enhanced Fund Limited $ 99.95 - - 0.00 Veritas Global Focus Fund C GBP £ 30.41 - 0.29 0.00
Series 6 (Investment Management Customers Only) Investment Port Acc X 163.60 - -0.10 - Persons in any doubt should take appropriate
Pictet-Eastern Europe-I EUR F € 293.70 - 4.15 0.00 Veritas Global Focus Fund C EUR € 25.83 - 0.43 0.00 professional advice. Data collated by Morningstar. For
United Kingdom Equity Index Fund £ 16.06 - 0.17 3.10 Max 50% Shs Port Acc Ret 245.90 - 0.60 - other queries contact reader.enquiries@ft.com +44
Pictet-Em Lcl Ccy Dbt-I USD F $ 163.00 - 1.11 0.00 Veritas Global Focus Fund C USD $ 28.05 - 0.23 0.00 (0)207 873 4211.
UK Specialist Equity £ 20.03 - 0.10 1.68 Max 50% Shs Port Inc Ret 220.00 - 0.50 -
Pictet-Emerging Markets-I USD F $ 512.22 - 0.48 0.00 Veritas Global Equity Income Fund A GBP £ 150.41 - 0.85 4.46
Contl Europe Specialist Fund £ 24.97 - 0.08 0.60 The fund prices published in this edition along with
Max 50% Shs Port Acc X 178.00 - 0.40 -
Toscafund (CYM) Veritas Global Equity Income Fund A EUR € 217.21 - 2.67 3.75 additional information are also available on the
Pictet-Emerging Markets Index-I USD F $ 232.42 - 2.32 0.00 Japan Specialist Fund X £ 15.50 - 0.01 0.51 Max 50% Shs Port Acc S 149.00 - 0.40 - Financial Times website, www.ft.com/funds. The
Stenham Asset Management Inc Regulated
Pictet-Emerging Corporate Bonds I USD $ 107.38 - 0.02 0.00 Veritas Global Equity Income Fund A USD $ 121.41 - 0.50 4.46 funds published on these pages are grouped together
US Spec Equity Fund £ 19.45 - 0.08 0.16 Max 100% Shs Port Acc Ret 283.40 - 1.90 - www.stenhamassetmanagement.com Tosca (Est) $ 306.47 - 2.22 0.00 by fund management company.
Pictet-Emerging Markets High Dividend I USD $ 103.31 - 0.43 0.00 Other International Funds Veritas Global Equity Income Fund C GBP £ 175.46 - 0.99 -
Pacific Basin Specialist Equity Fund £ 39.57 - -0.10 1.27 Max 100% Shs Port Acc X 203.50 - 1.30 - Tosca Mid Cap GBP £ 260.93 - -1.86 0.00
Polar Capital Funds Plc (IRL) Stenham Asia USD $ 137.43 - -4.25 - Veritas Global Equity Income Fund C EUR € 252.67 - 3.12 -
Prices are in pence unless otherwise indicated. The
Pictet-Emerging Markets Sust Eq I USD $ 91.02 - 0.57 0.00 UK Sovereign Bd Index Fund £ 10.72 - -0.02 2.63 change, if shown, is the change on the previously
Regulated Max 100% Shs Port Acc S 148.20 - 1.00 - Tosca Opportunity B USD $ 313.41 - 20.23 0.00
Pictet-Environmental Megatrend Sel I EUR € 165.00 - 1.19 0.00 Stenham Credit Opportunities A Class USD $ 105.38 - -1.95 0.00 Veritas Global Equity Income Fund C USD $ 140.76 - 0.59 - quoted figure (not all funds update prices daily). Those
Asian Financials I USD $ 300.45 300.45 -0.33 0.00 Inflation Lkd Sov Bd Fund £ 12.65 - -0.04 0.68 Enhanced Inc Inc Ins 215.80 - 2.30 - designated $ with no prefix refer to US dollars. Yield
Pictet-EUR Bonds-I F € 550.10 - -0.07 0.00 Stenham Emerging Markets USD B1 $ 105.21 - -2.06 0.00 Veritas Global Real Return Fund A USD $ 20.20 - 0.17 2.10 percentage figures (in Tuesday to Saturday papers)
Biotechnology I USD $ 20.53 20.53 -0.32 0.00 UK Specialist Equity Income Fund £ 10.77 - 0.05 3.64 Enhanced Inc Inc Ret 204.40 - 2.10 - allow for buying expenses. Prices of certain older
Pictet-EUR Corporate Bonds Ex Fin i EUR € 143.47 - -0.05 0.00 Stenham Gold USD $ 155.53 - -3.44 0.00 Veritas Global Real Return Fund A GBP £ 11.28 - 0.09 2.08
European Income Acc EUR € 12.27 12.27 0.13 - Global Spec Inv Grade Bd Fund GBP £ 10.10 - 0.00 3.22 Enhanced Inc Inc X 173.40 - 1.80 -
insurance linked plans might be subject to capital
Stenham Growth USD $ 225.24 - -1.12 - Veritas Global Real Return Fund A EUR € 11.91 - 0.10 0.17 gains tax on sales.
Pictet-EUR Corporate Bonds-I F € 199.20 - -0.06 0.00 European Ex UK Inc EUR Acc € 10.40 10.40 0.09 - Global Emerg Mkts Equity Fund X £ 10.98 - -0.02 0.70 Managed Investments OEIC
Stenham Healthcare USD $ 193.88 - -0.07 0.00 Retail Guide to pricing of Authorised Investment Funds:
Pictet-EUR Government Bonds I EUR € 156.02 - -0.19 0.00 Financial Opps I USD $ 13.23 - 0.07 1.81 Address and telephone number for Series 5 only Max 30% Shs Port Acc Ret 155.90 - 0.30 -
Veritas Asian Fund B USD $ 219.87 - -1.25 0.44 (compiled with the assistance of the IMA. The
Pictet-EUR High Yield-I F € 246.79 - 1.11 0.00 Stenham Helix USD $ 31.00 - -73.66 -
GEM Growth I USD $ 9.24 - 0.08 0.00 Max 30% Shs Port Acc X 155.60 - 0.30 - Investment Management Association, 65 Kingsway,
Stenham Managed Fund USD $ 118.81 - -1.20 - Veritas Asian Fund B GBP £ 273.31 - -1.40 0.04 London WC2B 6TD.
Pictet-EUR Short Mid-Term Bonds-I F € 136.77 - 0.02 0.00 GEM Income I USD $ 10.37 - 0.09 0.00 Royal London Unit Managers (CIS) (1200) F (UK) Max 30% Shs Port Acc S 149.40 - 0.30 - TreeTop Asset Management S.A. (LUX) Tel: +44 (0)20 7831 0898.)
5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777 Stenham Multi Strategy USD $ 122.64 - -1.71 - Veritas Asian Fund B EUR € 244.17 - 0.20 0.00
Pictet-EUR Short Term HY I EUR € 119.66 - 0.03 0.00 Regulated
Global Alpha I USD $ 13.33 13.33 0.15 0.00 Max 30% Shs Inc Port Inc Ret 154.70 - 0.30 -
Authorised Inv Funds TreeTop Convertible Sicav Veritas China Fund B GBP £ 144.12 - -1.24 0.00 OEIC: Open-Ended Investment Company. Similar to a
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 103.09 - 0.00 0.00 Stenham Quadrant USD A $ 396.15 - -6.00 - unit trust but using a company rather than a trust
Global Convertible I USD $ 11.76 11.76 0.02 0.00 CIS Sustainable Diversified Trust A £ 1.57 - 0.01 1.92 Max 30% Shs Inc Port Inc X 154.70 - 0.20 -
International A € 305.01 - 2.05 0.00 Veritas China Fund B EUR € 166.75 - -2.49 0.00 structure.
Pictet-Euroland Index IS EUR € 141.03 - 0.85 0.00 Stenham Trading Inc USD $ 114.77 - -1.57 -
Global Insurance I GBP £ 4.00 - 0.00 0.00 CIS Sustainable World Trust A 172.60 - 0.80 0.69 Max 30% Shs Inc Port Inc S 148.40 - 0.20 -
International B $ 391.94 - 2.56 0.00 Veritas Global Focus Fund B USD $ 18.66 - 0.15 1.66
Stenham Universal USD $ 456.51 - -6.67 - Different share classes are issued to reflect a different
Pictet-Europe Index-I EUR F € 182.92 - 1.84 0.00 Global Technology I USD $ 23.31 - -0.09 0.00 Max 60% Shs Port Acc Ret 270.20 - 1.20 -
Corporate Bd Inc Tst 89.04 93.73 -0.12 4.20 International C £ 131.59 - 0.84 0.00 currency, charging structure or type of holder.
Stenham Universal II USD $ 169.47 - -2.55 0.00 Veritas Global Focus Fund B GBP £ 21.47 - 0.21 1.74
Pictet-European Equity Selection-I EUR F € 664.37 - 10.17 0.00 Healthcare Blue Chip Fund I USD Acc $ 11.95 11.95 0.04 - Max 60% Shs Port Inc Ret 217.70 - 0.90 -
European Growth X 109.90 115.70 0.20 0.95 International D € 282.97 - 1.92 2.98 Selling price: Also called bid price. The price at which
Veritas Global Focus Fund B EUR € 17.08 - 0.28 1.60
Pictet-European Sust Eq-I EUR F € 252.98 - 2.45 0.00 Healthcare Opps I USD $ 44.15 - -0.06 0.00 Max 60% Shs Port Inc X 168.60 - 0.70 - units in a unit trust are sold by investors.
Sustainable Leaders X A 469.50 - 4.00 0.85 Pacific A € 279.34 - 0.38 0.00 Veritas Global Equity Income Fund B GBP £ 138.60 - 0.78 4.51
Pictet-Global Bds Fundamental I USD $ 118.10 - 0.02 0.00 Income Opportunities B2 I GBP Acc £ 1.74 1.74 0.00 0.00 UK Growth X 498.10 524.30 4.30 1.09 Max 60% Shs Port Inc S 148.70 - 0.70 - Stratton Street Capital (CI) Limited (GSY)
Pacific B $ 354.35 - 0.53 0.00 Buying price: Also called offer price. The price at
Regulated Veritas Global Equity Income Fund B EUR € 199.66 - 2.45 3.80
Pictet-Global Bonds-I EUR € 161.14 - 0.04 0.00 which units in a unit trust are bought by investors.
Japan Alpha I JPY ¥ 227.09 227.09 4.17 0.00 UK Income With Growth X 224.80 236.60 2.00 4.43 Eq Inc Port Acc Ret 297.90 - 2.00 - TreeTop Global Sicav
Japan Synthetic Warrant Yen Class ¥ 1752.23 - -15.25 0.00 Veritas Global Equity Income Fund B USD $ 120.56 - 0.49 4.52 Includes manager’s initial charge.
Pictet-Global Emerging Currencies-I USD F $ 98.11 - 0.23 0.00 Japan I JPY ¥ 2255.56 - 30.91 0.00 Eq Inc Port Inc Ret 235.30 - 1.60 - Global Opp.A € 153.52 - 0.94 0.00
US Growth 156.80 165.00 1.20 0.00
Japan Synthetic Warrant GBP Hedged Class £ 194.64 - -2.00 0.00 Veritas Global Real Return Fund B USD $ 19.57 - 0.16 1.65 Single price: Based on a mid-market valuation of the
Pictet-Global Emerging Debt-I USD F $ 349.79 - -0.92 0.00 Additional Funds Available Managed Investments OEIC 2 Global Opp.B $ 152.21 - 0.97 0.00 underlying investments. The buying and selling price
North American I USD $ 18.09 18.09 0.21 0.00
Investments Inc Port Inc Ret 163.80 - -0.10 - Japan Synthetic Warrant USD Class $ 18.37 - -0.14 0.00 Veritas Global Real Return Fund B GBP £ 11.05 - 0.09 1.66 for shares of an OEIC and units of a single priced unit
Pictet-Global Megatrend Selection-I USD F $ 236.80 - 1.36 0.00 Please see www.royallondon.com for details
UK Absolute Equity I GBP £ 11.90 11.90 -0.10 - Global Opp.C £ 186.96 - 0.40 0.00
Japan Synthetic Warrant USD Hedged Class $ 193.10 - -1.80 0.00 Veritas Global Real Return Fund B EUR € 12.74 - 0.11 1.47 trust are the same.
Investments Inc Port Inc X 148.40 - -0.10 -
Pictet-Greater China-I USD F $ 489.45 - 1.02 0.00 Sequoia Equity A € 151.48 - 0.75 0.00
Renminbi Bond Fund AUD Cls A A$ 122.62 - 0.33 3.83 Treatment of manager’s periodic capital charge:
Ruffer LLP (1000)F (UK) £ Gov Bond Inc Inst (gross) 175.40 - -0.10 -
Pictet-Health-I USD $ 312.78 - 0.32 0.00 Sequoia Equity B $ 157.26 - 0.94 0.00 The letter C denotes that the trust deducts all or part
Polar Capital LLP (CYM) 40 Dukes Place, London EC3A 7NH Renminbi Bond Fund AUD Cls B A$ 124.51 - 0.34 3.57 of the manager’s/operator’s periodic charge from
Pictet-High Dividend Sel I EUR F € 160.95 - 1.71 0.00 Regulated
£ Gov Bond Inc Inst 143.90 - -0.10 -
Sequoia Equity C £ 172.13 - 0.23 0.00 Veritas Asset Management LLP
Order Desk and Enquiries: 0845 601 9610 capital, contact the manager/operator for full details
Renminbi Bond Fund CHF Cls A SFr 120.43 - 0.32 3.85 www.veritas-asset.com
ALVA Convertible A USD $ 128.61 - -1.15 0.00 Authorised Inv Funds £ Gov Bond Acc Inst 144.50 - 0.00 - of the effect of this course of action.
Pictet-India Index I USD $ 104.90 - 0.79 0.00 Other International Funds
Authorised Corporate Director - Capita Financial Managers Strat Bond Inc Inst (gross) 182.60 - 0.00 - Renminbi Bond Fund CHF Cls B SFr 120.24 - 0.31 3.61
Pictet-Indian Equities-I USD F $ 470.89 - 1.93 0.00 European Conviction A EUR € 160.31 - -1.11 0.00 Real Return Asian Fund USD € 303.66 - -5.08 0.00 Exit Charges: The letter E denotes that an exit charge
CF Ruffer Investment Funds Renminbi Bond Fund CNH Cls A CNH 124.70 - 0.19 3.43
Strat Bond Inc Inst £ 1.50 - 0.00 - may be made when you sell units, contact the
Pictet-Japan Index-I JPY F ¥ 17403.23 - 154.81 0.00 European Forager A EUR € 180.80 - -0.47 0.00 Real Return Asian Fund GBP £ 323.55 - -5.28 0.00
CF Ruffer Gold Fund C Acc 73.89 - -1.81 0.00 manager/operator for full details.
Strat Bond Acc Inst £ 1.50 - 0.00 - Renminbi Bond Fund CNH Cls B CNH 124.48 - 0.19 3.19
Pictet-Japanese Equities Opp-I JPY F ¥ 10273.00 - 93.45 0.00 Real Return Asian Fund EUR $ 319.34 - -5.18 0.00
CF Ruffer Gold Fund O Acc 73.23 - -1.80 0.00 Time: Some funds give information about the timing of
Managed Investments OEIC 3 Renminbi Bond Fund Euro Cls B € 121.67 - 0.32 3.62
Pictet-Japanese Equity Selection-I JPY F ¥ 15486.35 - 114.54 0.00 price quotes. The time shown alongside the fund
Polunin Capital Partners Ltd Equity & General C Acc 383.97 - -2.04 0.25 Div Inc Port Inc Ret 177.50 - 1.90 - Renminbi Bond Fund GBP Cls B £ 123.65 - 0.32 3.41 manager’s/operator’s name is the valuation point for
Pictet-LATAM Index I USD $ 58.56 - 1.14 0.00 Other International Funds
Equity & General C Inc 354.36 - -1.88 0.25 Waverton Investment Funds Plc (1600)F (IRL) their unit trusts/OEICs, unless another time is
Emerging Markets Active $ 44.68 - -1.24 - Corp Bond Acc Inst (gross) 211.00 - -0.20 - Renminbi Bond Fund SGD Cls B S$ 122.59 - 0.33 3.37 indicated by the symbol alongside the individual unit
Pictet-LATAM Lc Ccy Dbt-I USD F $ 118.16 - 1.02 0.00 Troy Asset Mgt Ltd (UK) waverton.investments@citi.com
Equity & General O Inc 353.12 - -1.90 0.00 Corp Bond Inc Inst 142.20 - -0.10 - trust/OEIC name.
Luxcellence Em Mkts Tech $ 899.25 - -79.73 0.00 Renminbi Bond Fund USD Cls B $ 123.07 - 0.32 3.17 40 Dukes Place, London EC3A 7NH FCA Recognised
Pictet-Pacific Ex Japan Index-I USD F $ 355.91 - 2.21 0.00 Equity & General O Acc 380.56 - -2.05 0.00 Order desk: 0845 608 0950, Enquiries 0845 608 0950
Corp Bond Acc Inst 143.70 - -0.10 - Renminbi Bond Fund YEN Cls B ¥ 13581.88 - 34.85 0.00 Waverton Asia Pacific A USD $ 19.84 - -0.01 1.00 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
Polunin Developing Countries $ 789.80 790.91 3.58 0.00 Authorised Inv Funds
Pictet-Premium Brands-I EUR F € 167.90 - 2.04 0.00 European C Acc 510.56 - 2.59 0.21 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Multi-Manager OEIC Renminbi Bond Fund USD Cls A $ 169.62 - 0.45 3.41 ACD Capita Financial Mgrs Waverton European Fund A Eur € 18.28 - -0.18 0.51
Polunin Discovery - Frontier Markets $ 1528.39 - -1.58 0.00 midnight. Daily dealing prices are set on the basis of
Pictet-Quality Global Equities I USD $ 137.85 - 1.71 0.00 European O Acc 506.07 - 2.54 0.00 Bal Intl Track Acc Ret 269.20 - 1.50 - the valuation point, a short period of time may elapse
Renminbi Bond Fund GBP Cls A £ 164.75 - 0.43 3.65 Trojan Investment Funds Waverton Global Bond Fund Cls A $ 9.09 - 0.01 5.36
Polunin Small Cap $ 1402.98 1420.52 -80.27 0.00 before prices become available. Historic pricing: The
Pictet-Russia Index I USD $ 52.79 - 1.85 0.00 Japanese Fund C Acc 190.60 - -2.14 0.01 Bond Mthly Inc Acc Ret 142.60 - -0.10 - Spectrum Fund 'O' Acc ♦ 161.46 - 0.54 0.23
Renminbi Bond Fund SGD Cls A S$ 162.32 - 0.43 3.62 Waverton Global Equity Fund A GBP £ 13.99 - 0.16 0.38 letter H denotes that the managers/operators will
Pictet-Russian Equities-I USD F $ 44.32 - 1.15 0.00 Bond Mthly Inc Inc Ret 92.33 - -0.06 - Spectrum Fund 'O' Inc ♦ 157.51 - 0.53 0.23 normally deal on the price set at the most recent
Japanese Fund O Acc X 188.68 - -2.13 0.00 Waverton UK Fund A GBP £ 13.55 - 0.09 1.84
Renminbi Bond Fund YEN Cls A ¥ 20099.34 - 51.93 0.00 valuation. The prices shown are the latest available
Pictet-Security-I USD F $ 205.64 - 2.06 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY)
Pacific C Acc 307.14 - -6.87 0.46 Spectrum Income Fund 'O' Acc 97.88 - 0.09 - before publication and may not be the current dealing
Regulated Renminbi Bond Fund EUR Cls A € 111.86 - 0.30 3.86 Waverton Equity Fund A GBP £ 15.17 - 0.07 0.00
levels because of an intervening portfolio revaluation
Pictet-Select-Callisto I EUR € 107.41 - -0.10 0.00 Pacific O Acc 304.14 - -6.82 0.17 Spectrum Income Fund 'O' Inc 97.88 - 0.09 -
Monument Growth 28/07/2015 £ 473.84 479.13 -8.56 1.05 Santander Asset Management UK Limited (1200)F (UK) Poland Geared Growth £ 0.46 - -0.04 0.00 Waverton Sterling Bond Fund A GBP £ 9.76 - 0.01 5.34 or a switch to a forward pricing basis. The
Pictet-Small Cap Europe-I EUR F € 1138.26 - 8.47 0.00 287 St Vincent Street, Glasgow G2 5NB 0845 605 4400 managers/operators must deal at a forward price on
Total Return C Acc 401.79 - -1.64 1.39 Trojan Fund O Acc ♦ 253.75 - 0.50 0.56
Authorised Inv Funds
request, and may move to forward pricing at any time.
Pictet-ST.MoneyMkt-I € 140.52 - 0.00 0.00 Total Return C Inc 280.92 - -1.15 1.40 Trojan Fund O Inc ♦ 211.18 - 0.42 0.56 Forward pricing: The letter F denotes that that
Santander Premium Fund (OEIC)
Prusik Investment Management LLP (IRL) WA Fixed Income Fund Plc (IRL) managers/operators deal at the price to be set at the
Pictet-ST.MoneyMkt JPY I USD ¥ 101532.89 - -4.12 0.00 Total Return O Inc 278.32 - -1.16 1.40 A Shares Trojan Global Equity O Acc 214.86 - 1.36 0.88 next valuation.
Enquiries - 0207 493 1331 Regulated
Pictet-ST.MoneyMkt-ICHF SFr 124.61 - -0.01 0.00 Regulated Total Return O Acc 398.20 - -1.65 1.38 Europe (ex-UK) 283.80 - 0.10 - Trojan Global Equity O Inc 184.31 - 1.17 0.89 European Multi-Sector € 117.71 - 0.09 0.00 Investors can be given no definite price in advance of
Pictet-ST.MoneyMkt-IUSD $ 135.06 - 0.00 0.00 Prusik Asian Equity Income B Dist $ 161.66 - -0.29 4.46 Japan Equities 157.10 - 0.60 - the purchase or sale being carried out. The prices
Trojan Income O Acc ♦ 272.76 - 2.05 3.59
appearing in the newspaper are the most recent
Pictet-Timber-I USD F $ 155.51 - 0.75 0.00 Prusik Asia A $ 204.32 - 1.23 0.00 Pacific Bas (ex-Japan) 515.40 - -1.30 - Trojan Income O Inc ♦ 175.49 - 1.32 3.71 provided by the managers/operators. Scheme
Winton Capital Management
Prusik Asian Smaller Cos A $ 158.90 - 0.51 0.00 particulars, prospectus, key features and reports: The
Pictet Total Ret-Agora I EUR € 110.49 - 0.28 - Sterling Bonds 262.40 - -0.20 - Other International Funds
E.I. Sturdza Strategic Management Limited (GSY) most recent particulars and documents may be
Pictet Total Ret-Corto Europe I EUR € 135.16 - 0.66 0.00 UK Equities 272.00 - 2.90 - Regulated Winton Futures USD Cls B $ 1002.75 - -32.32 0.00 obtained free of charge from fund
UBS Global Asset Mgmt Fds Ltd (UK) managers/operators. * Indicates funds which do not
Pictet Total Ret-Divers Alpha I EUR € 104.66 - 0.13 0.00 Nippon Growth Fund Limited ¥ 111712.00 - -754.00 0.00 Winton Futures EUR Cls C € 281.97 - -9.07 0.00
Purisima Investment Fds (UK) (1200)F (UK) US Equities 262.90 - 2.20 - 21 Lombard Street, London, EC3V 9AH price on Fridays.
40 Dukes Place, London EC3A 7NH Strat Evarich Japan Fd Ltd JPY ¥ 101908.00 - -514.00 0.00 Client Services 0800 587 2113, Client Dealing 0800 587 2112 Winton Futures GBP Cls D £ 308.49 - -9.59 0.00
Pictet Total Ret-Kosmos I EUR € 109.22 - 0.02 0.00 B Shares
Order Desk 08459 220044, Enquiries: 0870 607 2555 www.ubs.com/retailfunds Charges for this advertising service are based on the
Pictet Total Ret-Mandarin I USD $ 118.39 - -0.36 0.00 S W Mitchell Capital LLP (CYM) Pacific Bas (ex-Japan) 514.60 - -1.30 - Strat Evarich Japan Fd Ltd USD $ 1015.50 - -6.18 0.00 Winton Futures GBP Cls F £ 118.99 - -3.70 0.00 number of lines published and the classification of the
Authorised Inv Funds Authorised Inv Funds
fund. Please contact data@ft.com or
Authorised Corporate Director - Capita Financial Managers Regulated OEIC Winton Evolution USD Cls F $ 1711.84 - -68.23 0.00
Pictet-US Equity Selection-I USD $ 198.00 - 0.85 0.00 call +44 (0)20 7873 3132 for further information.
Global Total Fd PCG A 167.49 - 1.48 0.34 S W Mitchell European Fund Class A EUR € 352.90 - 16.08 - Global Emerg Mkts Eqty B Acc £ 1.32 - 0.00 1.53
Pictet-US High Yield-I USD F $ 147.89 - 0.44 0.00 E.I. Sturdza Funds PLC (IRL) Winton Evolution EUR Cls H € 1350.12 - -53.55 0.00
Saracen Fund Managers Ltd (1000)F (UK)
Global Total Fd PCG B 166.12 - 1.46 0.13 S W Mitchell Small Cap European Fund Class A EUR € 238.60 - 9.55 - Regulated Global Optimal B Acc £ 1.01 - 0.01 0.83
Pictet-USA Index-I USD F $ 185.34 - 1.36 0.00 19 Rutland Square, Edinburgh EH1 2BB Winton Evolution GBP Cls G £ 1372.96 - -52.81 0.00
Global Total Fd PCG INT 164.09 - 1.44 0.00 The Charlemagne Fund EUR € 347.47 - 14.25 - Dealing: 00 353 1 603 9921 Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 1179.88 - -10.49 0.00 UBS UK Opportunities Fund B Acc £ 0.92 - 0.01 2.60
Pictet-USD Government Bonds-I F $ 631.13 - -0.84 0.00 Winton Futures JPY Cls E ¥ 19688.09 - -636.08 0.00
Saracen Investment Funds ICVC (OEIC) Enq. 0131 202 9100
Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1385.99 - -12.31 0.00 US Equity B Acc £ 1.52 - 0.02 0.27
Pictet-USD Short Mid-Term Bonds-I F $ 129.35 - -0.03 0.00 Authorised Inv Funds
Saracen Growth Fd Alpha Acc £ 3.73 - 0.01 0.95 Nippon Growth (UCITS) Fund JPY Class A shares ¥ 108331.00 - -958.00 0.00 UBS S&P 500 Index C Acc £ 0.53 - 0.00 -
Pictet-USD Sov.ST.Mon.Mkt-I $ 102.57 - 0.00 0.00
Saracen Growth Fd Beta Acc £ 5.95 - 0.02 1.43 Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 90829.00 - -799.00 0.00 UBS Targeted Return B Acc £ 1.29 - 0.00 1.21
Pictet-Water-I EUR F € 277.24 - 1.97 0.00

Asset Management
Asset Management Asset Management
28 ★ FINANCIAL TIMES Friday 31 July 2015

MARKETS & INVESTING

Equities
The Commodities Note

‘July squeeze’ disrupts

robusta coffee contract
A group of traders and
coffee roasters stand to
lose millions of dollars at
the end of this week, as a
rival dealer has amassed a
huge position in the
August robusta coffee
contract.
The so-called “July
squeeze”, to which traders
say they have alerted the
exchange, has driven up
robusta coffee for delivery
this month to its highest
premium in three years
against the next contract.
Some in the market are
fuming at what they see as
an excessively light-touch
approach by regulators in
London.
“This should not have
been allowed to happen,”
says one coffee trader, who
says he has complained to
exchange operator ICE
Futures Europe.
ICE Europe and the UK’s
Financial Conduct
Authority declined to
comment. Traders buying
uncommonly large
volumes of contracts on
the futures market to exert
a “squeeze” on investors
and traders with short
positions used to be a
common feature of niche
commodities such as
cocoa, coffee and cotton,
July/September robusta spread
$ per tonne
but they have become less
common in recent years.
The difference between
the July and September
robusta contracts has
jumped as much as $160 a
tonne since June and has
barely fallen back as
expiration approaches
today.
The July contract for
robusta beans, primarily
used for making instant
coffee, is now trading at
$1,755 a tonne while
September is at $1,639.
Financial authorities in
Europe are considering
tighter oversight.
“It’s disappointing,” says
a veteran broker. “I’m
surprised it has happened
given the amount of
market scrutiny there is
now.”
Europe’s authorities are
conducting their final
review of the Markets in
Financial Instruments
Directive (Mifid II) with the
aim of guarding against
systemic risks in equity,
fixed income and
commodity markets.
Under the new rules
being considered, buyers
and sellers of commodity
derivatives face tougher
restrictions on trading.
www.ft.com/commodities
Noble’s fall sparks exchange warning
Investors told to ‘exercise
caution’ when trading as
stock hits post-crisis low
DAVID SHEPPARD AND NEIL HUME
Shares in Asian commodity dealer
Noble Group, under fire over alleged
aggressive accounting practices, fell 12
per cent yesterday, leading the Singa-
pore Exchange to issue a warning to
investors.
The exchange said investors should
“exercise caution” in trading the com-
pany’s securities, which sank to their
lowest price since the financial crisis.
Noble told the Singapore Exchange
that it saw no reason for the fall, but
funds and analysts pointed to growing
pressure on the company, which has
struggled to shake off doubts from
Rules push raises risks for banks’ senior bonds
Regulators are gaining powers
to ‘bail in’ the unsecured debt
of lenders that hit trouble
THOMAS HALE
investors since Iceberg Research ques-
tioned its accounts six months ago.
It is the third time that the Singapore
Exchange has queried moves in Noble’s
shares in six months.
Shares in Asia’s largest commodity
trader have now fallen 57 per cent since
February and hit a six-and-a-half-year
low of S$0.52 yesterday.
The cost of insuring Noble’s debt has
more than doubled since February, and
Standard & Poor’s has warned its credit
rating could be downgraded to junk sta-
tus without greater transparency.
The share price tumbled despite a
series of share buybacks by the com-
pany, including personal purchases by
its founder and chairman Richard
Elman, a British-born former scrap
dealer who launched the company in
Hong Kong 28 years ago.
But the company, which is still head-
Analysis. Capital markets
Losing protection
European banks’ senior unsecured debt issuance
2013 to June 2015
Market cap*
quartered in Hong Kong, yesterday
entered its two week “blackout” period
before its second-quarter results.
During the blackout period the com-
pany and its senior officers are barred
from buying or selling its shares, accord-
ing to Singapore Exchange rules.
As one of the most shorted stocks on
the Singapore Exchange that means the
company may need to weather more
volatility before its results on August 13.
“The weak commodities market and
the prospect of an even stronger dollar
has highlighted internal issues plaguing
the company — this has continued to
attract short sellers to Noble,” said Relte
Stephen Schutte, analyst at Markit.
Mr Schutte said 11.8 per cent of
Noble’s free floating shares were out on
loan, more than double the amount in
early June.
Around the same time as its second-
12% quarter results, Noble will also release
findings from a review of its market-to-
The amount Noble market accounting practices by PwC,
Group shares fell
by yesterday as commissioned by the company’s board.
accounting fears But fund managers and analysts have
grow questioned whether a study paid for by
the company will assuage concerns.
11.8 %
The way Noble books profits on long-
term commodity deals and values its
Proportion of
Noble’s free stakes in assets has been at the centre of
floating shares out the criticism by US short sellers.
on loan, according Noble has been accused of recording
to Markit profits on some long-term commodities
agreements before it receives all the
money, which has led to fears that the
amount of money it receives will be
lower than accounted for.
Noble has robustly defended its
accounting practices, saying the value it
places on its long-term commodity con-
tracts and assets are consistent with
international accounting standards.
Value ($bn)
Deal value for rest of year

A new era for holders of unsecured sen-

Credit Suisse €41bn €40.9bn Deal value to end-July

800
€30.4bn
ior bank bonds beckons — and with it
150 more risk for a type of debt long Banco Santander €93bn
favoured by pension funds and insur-
100 ance companies.
Senior bonds, as their name implies, Deutsche Bank €39bn €27.2bn 600
50
rank ahead of subordinated debt and
equity in claims on a failed bank, and
offer lower levels of interest in line with Crédit Agricole €35bn €23.8bn
0 lower levels of risk.

-50
But that rationale is now changing,
spurred by new regulatory measures
BNP Paribas €69bn €23.5bn 400

designed to help “resolve” banks and

Jan
Source: Thomson Reuters
2015 Jul
keep them running during future bouts
of trauma.
BPCE Unlisted €23.2bn
200
€20.1bn
This entails a shake-up for investors
fastFT and financial institutions that have UBS €74bn
sought these debt instruments,

Weaker euro helps region’s

companies beat expectations
European companies are
delivering quarterly profits
ahead of expectations
thanks to a weaker euro
and improving economies
across the region, writes
Joel Lewin.
During the current
second-quarter earnings
season, two-thirds of
eurozone companies that
have reported results have
eclipsed earnings per share
estimates, according to
Citi, topping the long term
average of roughly 48 per
cent. “We think we’ve hit
the sweet spot in the cycle
for [eurozone] earnings
growth,” said Peter
Sullivan, head of equity
strategy at HSBC.
The robust performance
by eurozone companies is
seen as laying the ground
for pushing equity markets
back to their highs of April,
when investor sentiment
was buoyed by the launch
of quantitative easing by
the European Central Bank.
With companies in the
US S&P 500 facing their
first quarterly decline in
earnings year-over-year
since 2009, investors are
expected to focus on
brighter prospects for the
eurozone region.
Blue-chip companies in
the eurozone are on track
for 15 to 20 per cent
second-quarter earnings
growth, while US
companies are set for a
3 per cent fall in earnings,
according to HSBC.
The bank forecasts
earnings per share growth
of 25 per cent for eurozone
companies this year,
compared with a 2 per cent
contraction for UK
companies.
The weakening euro has
helped insulate eurozone
companies from the full
weight of macroeconomic
issues that have rocked
global markets, such as the
Greek crisis, the Chinese
stock crash and a possible
US rate rise. “It’s a battle
royal between the bright
earnings outlook and the
macro risks,” said Mr
Sullivan.
www.ft.com/fastFT
which notably incurred minimal
losses during the financial crisis. While
failing lenders were “bailed out” by tax-
payer money across the western world,
holders of senior bank debt had it
relatively easy.
“Some bondholders have yet to come
to terms with the degree of change com-
ing to the risk of senior unsecured debt,”
says Oliver Burrows, an analyst at
CRT Capital.
Holders of senior bonds now face the
overarching threat of losses, or “bail in”
should banks run into trouble, thanks to
the Financial Stability Board’s require-
ments for total-loss absorbing capacity
(TLAC), as well as the European Bank-
ing Authority’s minimum requirements
for own funds and eligible liabilities
(MREL), which is driven by the operat-
ing company model.
Beneath the arcane acronyms, these
regulatory pushes include a commit-
ment to the same principle: bond hold-
ers absorbing losses.
The imposition of these losses falls to
“resolution authorities”, which will have
the ability to bail in unsecured senior
debt — meaning its holders lose more
money when a bank fails.
“There has been a clear distinction
between bank debt that is funding, and
debt that is capital,” points out Mr Bur-
rows. “With the advent of MREL and
TLAC, that distinction is becoming
blurred.”
“In the future, shareholders and
creditors will have to bear the burden
of bank failure, minimising moral
hazard and risks to taxpayers,” the
HSBC €164bn €19.7bn
Standard Chartered €37bn €16.1bn
Other European banks €352bn
* As at June 12 2015
FT graphic Source: Dealogic
EBA said in a paper this month.
‘[Investors] The EBA estimates there could be
and an MREL shortfall of €510bn across
47 banks if senior bank debt is not
creditors treated as loss-absorbing, assuming
will have to banks need to hold MREL instruments
equivalent to 8 per cent of their total
bear the liabilities and equity. If senior debt and
burden uncovered deposits over one year are
included, however, that shortfall is only
of bank €13bn.
failure’ “The debate around the treatment of
senior is key,” says Simone Verri, co-
head of investment grade debt at Gold-
man Sachs. “If you include it, then the
gap is manageable.”
In Europe, the capacity of individual
countries to tailor their own approaches
to the rules also poses complications. So
far, there are two clear approaches
developing. The contractual, or “Span-
ish” approach, involves creating a new
kind of bank debt — “tier 3” capital —
that absorbs losses, while leaving exist-
ing senior bonds unchanged.
The statutory, or “German” approach,
on the other hand, involves passing a
law that converts senior debt to make it
loss absorbing, which could apply
to existing outstanding debt.
In March, Fitch Ratings said the Ger-
man senior debt law would “improve
bank resolvability”.
“I think it sounds like the rest of
Europe will follow the German model,
and it wouldn’t surprise me if eventually
the Spanish follow the German model as
well,” says Lloyd Harris, a credit analyst
at Old Mutual Global Investors.
“The ECB likes the German model
and the ECB is the regulator,” he adds.
“I’d be very surprised if we don’t see that
subordination.”
Goldman Sachs believes the change
will not necessarily drive more issuance
of new debt to meet the requirements,
but that it will result “in a different mix
of quality, particularly as it relates
to senior”.
That means banks are likely to have to
pay more interest on their senior bonds.
Lenders are now working to convince
investors that their senior debt will not
be vulnerable, according to Mr Verri.
0
2005 07 09 11 13 15
€85.7bn
“Some of the banks have started to
include in investor presentations how
much loss-absorbing capital [they have]
— mostly without including senior
debt,” he says. “This would indicate a
desire to protect senior with enough loss
absorbing instruments before it.”
Spreads on unsecured senior bank
debt have not yet reacted sharply to the
uncertain shift looming on the horizon.
The regulations are set to come into
force over the next few years, and the
European Commission’s Banking
Restructuring and Resolution Directive
(BRRD) needs to be passed by all
EU member states, as it was in Greece
last week.
“There’s no such thing, going forward,
as a bank insolvency,” says Mr Harris.
“It’s called recovery and resolution, and
it’s where a bank would actually be
resolved in a set manner rather than
going bust.”
“[Before] there was no real set
rule-book” he adds. “It just seemed to
happen as and when the way the regula-
tor decided.”

Commodities Currencies

Oil rises after signs of slowing US production
DAVID SHEPPARD AND
HENRY SANDERSON
Oil rose about 1 per cent yesterday as
traders bet that the worst of the recent
rout might be over after data suggested
a slowdown in US production.
International benchmark Brent rose as
much as $1 a barrel to a high of $54.38
before easing to $53.88, an almost 4 per
cent recovery since hitting a near six-
month low close to $52 this week.
The US benchmark, West Texas Inter-
mediate, rose 32 cents to $49.09 a
barrel, up for the third straight session.
Other commodities remain under
pressure, with strength in the US dollar
weighing on those priced in the green-
back. Traders are watching for signs
that the US Federal Reserve will raise
interest rates in September, signalling
an end to a seven-year period of
accommodative monetary policy in the
world’s largest economy.
Crude has rebounded from a near 15
per cent slide, after weekly data from
the US Energy Information Administra-
tion on Wednesday showed a large drop
in stockpiles and a possible dip in out-
put, a sign US shale drillers may finally
be slowing in the face of lower prices.
US oil inventories still remain close to
record levels, however, and the chief
executives of leading energy companies
have warned they are hunkering down
for a prolonged period of lower prices.
BP and Royal Dutch Shell executives
said this week they expected prices to
remain soft in the medium term after
reporting large drops in second-quarter
profits, though they have received some
respite from refining operations that
have benefited from lower crude costs.
“The clear implication is that any
investment decision taken this year has
to be robust enough to survive the con-
tinuation of very low oil prices,” said
David Hufton at PVM oil brokerage.
Opec, the producer’s cartel, expects
demand to rise.
Iron ore yesterday reversed part of its
recent rally, falling 70 cents to $54.60 a
tonne, according to The Steel Index.
This month, the steelmaking ingredient
saw its biggest one-day drop since TSI
began to compile data in 2008, before
rising 24 per cent over 16 days.
Copper also resumed its slide, falling
1.2 per cent after a two-day rally on the
back of news of disruptions to mining
production in Zambia and Chile.
Gold has steadied following last
week’s large sell-off, but remains under
pressure below $1,100 a troy ounce. It
slipped 0.25 per cent to $1,093.60 a troy
ounce yesterday.
GDP data add to the dollar’s post-Fed rally
MICHAEL HUNTER
The dollar was approaching multiyear
highs yesterday after an upward revi-
sion to growth data added to a rally
sparked by the Federal Reserve’s signal
that it would raise rates in the coming
months.
The dollar index, which measures the
currency against a weighted basket of its
peers, was up 0.6 per cent to 97.59, leav-
ing the gauge only about 3 per cent shy
of the 12-year high touched in March.
The dollar has climbed 2 per cent so far
in July, fully reversing a decline of 1.5 per
cent for June, as investors have posi-
tioned their portfolios for tighter policy
from the central bank.
The benchmark touched its session
high after GDP data for the first quarter
were significantly revised higher to
show growth of 0.6 per cent, an
improvement on the previous reading
that showed a contraction of 0.2 per
cent in the period.
Data for the second quarter narrowly
missed forecasts — showing growth of
2.3 per cent, just shy of the 2.5 per cent
predicted, not enough of a miss to inter-
rupt the dollar’s ascent.
The rally for the world’s reserve cur-
rency followed the Fed’s statement on
Wednesday after a two-day policy meet-
ing, closely mirrored its June release in
indicating that a rate increase in 2015
was still on the cards, but the central
bank left its options open on timing as it
awaited more evidence on the strength
of the economic recovery.
“The Fed outlined the path to higher
rates in September,” said Eric Green,
economist at TD Securities. “With the
appetite to raise rates at the highs of the
cycle, and continued improvement in
jobs and the economy to be expected,
we continue to see September as the
high probability outcome.”
Enrique Diaz-Alvarez, chief risk
officer at Ebury, said: “The Fed has not
quite decided to hike rates in Septem-
ber, but it has hinted at what it needs to
see, citing ‘some’ further improvement
in the labour market. That it is not a
high bar.
“To me, this amounts to a require-
ment for no more than an absence of
bad surprises.”
The dollar’s gains also reflected
higher US Treasury yields, with the poli-
cy-sensitive two-year US note adding 2
basis points to 0.73 per cent, only a few
basis points below its highest level since
April 2011. US 10-year yields are climb-
ing 3bp to 2.32 per cent, while equiva-
lent maturity German Bunds are inch-
ing up 1bp to 0.72 per cent.
Friday 31 July 2015 ★★★ FINANCIAL TIMES 29

MARKETS & INVESTING

Global overview
TRADING POST Markets update
Jamie
Chisholm
Dollar rises as US growth data fuel S&P 500 index
Change on day 0.08%

expectations of rate rise this year

The next two Fridays could go a long
way in determining whether a Federal
Reserve rate rise arrives in September.
Of the two issues the US central bank
must address — jobs and inflation —
most analysts think it is the former
that carries greater heft in deciding
when borrowing costs should rise.
Consumer price inflation remains
benign, meaning there is little need for
policy to be tightened on that account.
If anything, falling energy costs are
delivering disinflation, encouraging
rates to stay lower for longer.
But the Fed will also be keeping a
close eye on the datapoint where jobs
and inflation merge. The employment
cost index for the second quarter will
be published at the end of this week.
Quarter-on-quarter wage growth of
0.6 per cent is forecast — year-on-year
is about 2.6 per cent — but any sign
that earnings are accelerating at a
faster pace will make the Fed’s trigger
finger that bit more twitchy. (It might
also concern equity investors because
higher labour costs should eat into
company's presently record high profit
margins).
Then, on August 7, we get the July
non-farm payrolls (NFP) report. By the
time Janet Yellen, Fed chair, and
colleagues gather for the next
scheduled meeting, in September, they
will also have had a chance to peruse
the August NFP report, too.
Average NFPs greater than 200,000
net jobs created and expectations of
an autumn “lift-off” will harden further.
Meanwhile, the dollar index is
creeping back towards its 12-year highs.
Any lurch higher may spook markets.
jamie.chisholm@ft.com
US employment cost index
for civilian workers
Annual % change
Recession
1982 90 2000 10
Source: Thomson Reuters Datastream
Currency less than 3%
short of March’s 12-year
high while two-year
Treasury bond yield in
sight of five-year peak
DAVE SHELLOCK
The dollar and shorter-term US Treas-
ury bond yields crept back towards
multiyear highs amid mounting expec-
tations that the Federal Reserve would
raise interest rates this year.
The US central bank painted a rela-
tively upbeat picture of the US economy
in its latest policy statement, released
yesterday after a two-day meeting of its
Open Market Committee.
Furthermore, analysts latched on to a
minor tweak to the wording of the state-
ment compared with that released in
June — the Fed said that “some further
improvement” in the labour market
was a prerequisite for raising rates,
rather than just “further improve-
ment”.
“Does this mean the bar has been low-
ered for what they need to see to pull the
trigger?” asked Jim Reid, macro-strate-
gist at Deutsche Bank.
“It’s still pretty vague and no doubt
thousands of analysts around the globe
will be spending hours debating the
addition of a single word.”
Kit Juckes, FX strategist at Société
Générale, said: “On such small details
hangs market sentiment, but we can
conclude firstly that the first hike is get-
ting closer, and secondly that when it
happens still depends on how data
evolve.”
On that front, the latest US GDP
6 report certainly appeared to play to
4 expectations of a move by the Fed this
2 year, although exactly when remained
0 open to conjecture.
15 Although the 2.3 per cent growth in
second-quarter GDP was slightly less
‘Some’ Fed statement: FT.com/video
John Authers suggests that employment data will be watched
even more obsessively than usual over the next two months
than expected, the initially reported 0.2
per cent contraction in the first quarter
was revised to a 0.6 per cent expansion.
“This essentially cancels out the
second-quarter miss,” said Alexander
Lin, US economist at Bank of America
Merrill Lynch.
The acceleration was largely driven
by a big rebound in consumer spending,
with goods consumption particularly
robust due to strong demand for cars.
“Today’s US GDP numbers show an
expansion that continues to be slow but
steady,” concluded David Kelly, chief
global strategist at JPMorgan Asset
Management.
Noting that the level of initial jobless
claims last week remained low, he
2120
2100
2080
2060
2040
Jul 2015
December lift-off for interest rates.” US equities The S&P 500 paused for
The firming up of expectations for US breath after two days of solid gains,
rates to rise this year helped push the with Procter & Gamble under pressure
dollar index, a measure of the US after reporting yet another drop in
currency against a basket of peers, up quarterly sales
0.5 per cent, leaving it less than 3 per
cent short of a 12-year high it reached in FTSE 100 index
March. Change on day 0.57%
The euro was down 0.5 per cent at 6800
$1.0928 while the dollar was 0.2 per cent 6700
higher versus the yen at Y124.13. 6600
The yield on the two-year US govern- 6500
ment bond, meanwhile, was up 2 basis
6400
points at 0.73 per cent and within sight Jul 2015
of its highest level since April 2010.
However, the 10-year Treasury yield UK equities Energy stocks were lifted
was down 1bp at 2.26 per cent while that by a rebound for crude oil prices, with
on the 10-year German Bund fell 6bp to Royal Dutch Shell further boosted by
0.65 per cent. its announcement of job and capital
Stock markets put in more mixed spending cuts
performances as participants digested a
particularly busy calendar of earnings Eurofirst 300 index
reports.
Change on day 0.62%
In New York, the S&P 500 ended flat 1600
at 2,108 following a 2 per cent rise over
the previous two sessions. That left the 1550
Mike Mergen/Bloomberg News.
US equity benchmark about 1.2 per cent 1500
below the record high it reached in May.
1450
Facebook pared an early fall that
Jul 2015
came after the social media group
revealed a drop in quarterly profits. European equities The Eurofirst 300
Across the Atlantic, the FTSE rose for a third session, helped by
added: “On balance, this shouldn’t Eurofirst 300 gained 0.6 per cent, several forecast-beating earnings
change expectations for Fed action in helped by positive results from the likes reports and upbeat remarks on the US
September.” of Siemens and Nokia, as well as the economy from the Federal Reserve
But Alasdair Cavalla at the Centre for weaker tone of the euro.
Economics and Business Research high- In Tokyo, the Nikkei 225 rose 1.1 per
lighted that the Fed was still awaiting a cent. Nikkei 225 index
pick-up in inflation. Market watchers also kept a wary eye (’000) Change on day 1.08%
21.0
“Core inflation is around the 2 per on events in China as the Shanghai
cent target, reflecting buoyant labour Composite index fell 2.2 per cent, 20.5
market conditions,” he said. helping to maintain concerns about the 20.0
“However, if global commodity prices possibility of a “hard landing” for the
fall further, as expected, they may start country’s economy. 19.5
Jul 2015
to influence domestic price expecta- Such worries have pressed commod-
tions and push down the core rate in ity prices in recent weeks, and Brent Japanese equities Positive earnings
turn. crude slipped a further 0.1 per cent to from Hitachi and Nintendo sent shares
“Combined with today’s evidence that $53.31 a barrel, while copper shed 1.3 in both companies up sharply as the
growth is steady but probably still below per cent in London to $5,260 a tonne. Nikkei rose to its best level in a week
its full potential, this leads us to expect a Gold was $9 lower at $1,087 an ounce.

Tullow Oil to fund shareholder returns.

London
Tullow rises off decade
V will be flat to 5 per cent, rather than the
lows after mention as
likely takeover target
Bryce Elder
Tullow Oil edged above a 10-year low
after Goldman Sachs tipped the African
explorer as a likely takeover target.
Oil majors need mergers and
acquisitions to replace their high-cost
production and the global top seven
could raise $150bn of firepower without
stretching balance sheets, argued
Goldman. Deferring capital
expenditure on fields where break-even
is above $60 a barrel might save them a
further $325bn, it forecast. Tullow is an
ideal target as its 1.3bn barrels of proven
and probable reserves are in similar
geographies to the majors, with key
growth projects in Ghana, Kenya and
Uganda having an average price of $38 a
barrel, it said.
But Tullow’s funding position looks
tight ahead of its Ten project coming on
stream in mid-2016, which creates an
Share price (pence)
800
600
400
200
Jul 2014 2015 Jul
Source: Thomson Reuters Datastream
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opportunity for “balance sheet
arbitrage”, Goldman told clients. “We
believe potential buyers will be those
companies that have low financial
leverage but high project costs, and that
can use their balance sheets to gain
access to lower-cost projects that
currently sit with companies that have
high financial leverage,” it said.
Tullow rose 4.7 per cent to 246.6p.
The shares have fallen 85 per cent from
their peak of more than £16 in 2012.
Earnings season meant a wider
market rally continued into a third
straight day, lifting the FTSE 100 by 0.6
per cent or 37.87 points to 6,668.87.
Royal Dutch Shell alone added
nearly 20 points to the index, with its
B shares rising 4.7 per cent to £18.61
on better than expected earnings and
an outlook focused on cutting spending
HellermannTyton jumped 41.7 per Trading Directory
cent to 540.5p after Delphi Automotive
agreed to buy the cable-tie maker for
£1.07bn cash.
Babcock was down 5.1 per cent to
985.5p after cutting guidance for its
recently purchased helicopter services
division. Revenue growth for the unit
'D\
15 per cent Babcock had expected in
 May, because of its failure to win a


French firefighting contract and weak
demand from oil and gas customers.
 Vedanta Resources lost 3.9 per cent

to 385p on a Merrill Lynch downgrade.

Broadband provider TalkTalk


dropped 5.2 per cent to 309.3p after
figures from rivals BT and EE suggested
it was losing market share. Since
cautioning last week that it was caught
in the crossfire of a price war between
Sky and BT, TalkTalk has dropped 21
per cent.
Talk of stockbroker consolidation
provided much of the interest among
the small-caps. One story doing the
rounds was that QInvest, the Qatar
investment bank, has been sounding
out possible buyers for its 47 per cent
stake in Panmure Gordon, which was
untraded at 150p.
Talk of tough trading for the smaller
brokers has rekindled speculation
about possible mergers. As well as
offering the potential for cost cuts,
Panmure’s brand might be valuable to a
peer such as N+1 Singer, whose
reputation has suffered on the poor
performance of some of its recent
flotations, said dealers.

rise in the previous quarter. producer swung to a loss in the second

Wall Street
Whole Foods tumbles
as audit weighs on sales
Mamta Badkar
Whole Foods shares took a spill after the
upmarket US grocer reported slowing
same-store sales growth following price
audits in New York that attracted
negative press.
The company said that same-store
sales, a key industry metric, had risen
1.3 per cent in the quarter, below
forecasts for 2.8 per cent growth. The
pace also cooled from the 3.6 per cent
“Comparable sales dropped sharply in
week 11, after our New York City
weights and measures audit received
national media attention and averaged
just 0.4 per cent for the last two weeks of
the quarter,” Walter Robb, chief
executive, said.
The Department of Consumer Affairs
said in June that the grocer “routinely
overstated the weights of its pre-
packaged products”, which resulted in
customers being overcharged.
Comparable sales have seen “slight
improvement” in the fourth quarter to
date and Mr Robb said that the issues
“were not systematic” but were caused
by “inadvertent human error”.
Profits rose 2 per cent from a year
earlier to $154m, or 43 cents a share, in
the three months to July 5. Sales rose
nearly 8 per cent to $3.6bn. Analysts on
Wall Street had forecast earnings of 45
cents a share on sales of $3.7bn.
Shares of Whole Foods, which have
declined 28 per cent so far this year, fell
11.6 per cent to $36.08.
ConocoPhillips shares fell 1.5 per cent
to $52.10 after the US oil and gas
quarter amid a protracted drop in oil
prices. It reported a net loss of $179m, or
15 cents a share, below analysts’
estimates for earnings of 6 cents a share.
This compared with profits of $2.1bn in
the same period a year ago. Adjusting
for one time items, however, earnings of
7 cents a share topped forecasts.
Bunge shares fell 5.1 per cent to $81.27
after the company reported a 70 per
cent drop in second-quarter profits.
Bunge said its Brazilian edible oils
business, which experienced “dramatic
pressure”, along with weak margins in
its seed units had weighed on results.
Qorvo was the worst performing
stock on the S&P 500, after the
chipmaker’s second-quarter outlook
missed analysts’ expectations. Its shares
fell 14.2 per cent to $60.49.
US stocks were mixed after the latest
Trading Directory
data showed that US economic growth
rebounded in the second quarter. FT BUSINESS
The S&P 500 and Dow Jones Tuesday, Friday & Saturday: Business for Sale, Business Opportunities, Business Services,
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30 ★ Friday 31 July 2015

INSIGHT Analysis. Equities

Michael
Mackenzie
China slowdown drags on blue-chip groups
Industrial companies most S&P 500 sales generated in
Asia
vulnerable as bull run’s end
Economic clouds hint threatens global GDP growth
Per cent
8.0
7.0
at summer storm NICOLE BULLOCK AND ERIC PLATT 2010 11 12 13 14
6.0

looming for investors Global blue-chip companies have navi-

gated choppy waters of late, enduring
Company outlooks on China
“ Nothing that's happened has
falling energy and commodity prices in changed our fundamental view
that China will be Apple's Apple
conjunction with a rising dollar. Now largest market at some point in

A
summer break for investors looks highly
unlikely this year. While many of us are
already enjoying or planning some down
time, asset prices appear vulnerable in the
coming weeks against a backdrop of uncer-
tainty driven by China and the US Federal Reserve.
No matter the recent easing in tension between Greece
and its creditors, the big story framing the rest of summer
is a timeworn classic, last seen during the US bond market
taper tantrum of 2013, and more spectacularly in 1998.
Emerging markets are under severe pressure, with a
JPMorgan index of leading EM currencies loitering at the
lowest level since 1999, hampered by a one-two punch of a
stronger dollar and collapsing commodity prices.
another wave is rocking the boat: China. the future. It's true ... that the equity
The country’s economy, which has markets have recently been volatile.
delivered relentless growth amid seem- This could create some speed bumps
in the near term. ”
ingly insatiable demand, has been slow-
ing. Then this month the stock market “ The slowdown in the China
economy is a factor and the Freeport
rally ran aground, raising questions carry-on effects of the drop -McMoRan
about the effect on China’s economy and in stock prices in China and the impact
how this plays out globally. on financial investors is certainly being
shown in the copper price. ”
For many US and European multina-
tionals over the past decade, China, with “ Asia-Pacific region was down
30%, with much of that decline
its huge population and booming in China and Japan. In China Caterpillar
demand, has become an important the construction industry continued to
source of revenues and helped bolster weaken. ”
their operations in the face of slower Sources: S&P Dow Jones Indices; Factset Callstreet

The tumult reflects a convergence between the outlook domestic growth.

for China’s economy and markets with US central bank “The theory is that the slowdown in Apple says it those that export, have to be concerned Pacific region, mostly from China and of the drop in stock prices in China and
policy intentions. China is meaningful and could slow will continue about the slowdown in the Chinese Japan, FactSet says. the impact on financial investors is
Given the scale of intervention by China’s authorities in overall global gross domestic product investing as economy,” says Randy Frederick, man- This week, Ford became the first big certainly being shown in the copper
trying to stem their equity market rout, investors are more growth and have a ripple effect,” says ‘China will be aging director of trading and derivatives carmaker to revise estimates for China price.”
and more sceptical that the country’s economy is expand- Oliver Pursche, chief executive at Bru- Apple’s largest at Charles Schwab. car sales down, potentially marking the Still, he expects China to continue to
ing at the official rate of 7 per cent. Talk of China growing at derman Brothers, the New York-based market at some Michael Lynn DeWalt, the vice- first full-year sales fall for the industry be a big consumer of copper.
less than 5 per cent has stirred markets of late, hence privately owned broker-dealer. point in the president of Caterpillar’s finance serv- in the largest market since 1990. On the flip side, some consumer com-
renewed downward pressure on commodity prices such as During this quarterly reporting sea- future’ ices unit, said in an earnings call with Mark Fields, Ford chief executive, panies have shown resilience and execu-
oil, copper and iron ore. That nasty price action is weighing son, the effect of a slowing China has Feng Li/Getty
analysts that the Asia-Pacific region for said: “We’re still very bullish on China tives are upbeat about prospects in the
on exports across emerging markets and spurring broad been a prevailing topic with companies, its construction arm was down 30 per but it’s going to go through its fluctua- country. Nike said revenue grew 20 per
deflationary worries. including Caterpillar, Apple and Ford. cent in the latest quarter with much of tions. That’s what happens in emerging cent last quarter in China while Star-
Against that backdrop, we have a clearly ascendant US The word “China” was mentioned in that decline in China and Japan. markets.” bucks said business in China was out-
dollar, reflecting expectations nearly half of 186 earnings calls con- According to FactSet economic Audi, part of the Volkswagen group, performing that of other regions.
that the Fed will finally shift ducted by S&P 500 companies from the estimates, real, year-over-year GDP also lowered its global annual sales out- While China could not continue to
borrowing rates north in the start of June through to the end of last growth in China is projected to be 6.9 look due to concerns over demand from grow at a breakneck pace forever, many
coming months, perhaps as
Investors are week, according to FactSet. per cent, which would be a continuation China this week. That came as Siemens companies remain optimistic for the
early as September. sceptical China’s Investors caution that industrial com- of the declining growth seen in recent reported yesterday that Chinese reve- longer term.
Simon Derrick at BNY Mel- panies, in particular, are vulnerable to years. nues fell 8 per cent year on year. Apple chief Tim Cook told analysts
lon highlighted this week how
economy is China. So far this year, S&P industrials However, many investors suspect the Another China-sensitive area is com- that Apple was extremely bullish on
the summers of 1998 and 2013 expanding at the are down nearly 4 per cent, well behind true rate of growth may be lower, and it panies associated with commodities. China and will keep investing.
saw a hawkish stance from the broad market’s 2.4 per cent rise. The faces a potential hard landing given the Falling copper prices are crucial for “Nothing that’s happened has
the Fed foster turmoil in
official rate of 7% materials sector has fallen nearly 6 per huge build up in debt over the decade. US-based natural resource company changed our fundamental view that
emerging equity and cur- cent, hammered by sliding commodity Still, China continues to be a vital geo- Freeport-McMoRan, and chief China will be Apple’s largest market at
rency markets. “In both cases the Fed subsequently took a prices for many resources and concerns graphic market for the S&P 500. Con- executive Richard Adkerson told inves- some point in the future.’’
more dovish position that ultimately helped international over demand from China. stituent companies generate about 9 per tors: “The slowdown in the China econ- Additional reporting by Kadhim Shubber in
markets stabilise,” he said. “Big industrial companies, especially cent of sales in aggregate from the Asia- omy is a factor and the carry-on effects New York
Any recurrence stands to take some time, given the nat-
ural focus of US officials on an expanding domestic econ-
omy, buoyed in part by cheaper oil for American drivers
seen as eventually bolstering consumer spending. Capital markets
With many central banks around the world having
eased policy this year — thereby driving up the US dollar —
to combat their weakening economies, the Fed can down-
play the risk of contagion unsettling domestic markets.
Blackstone returns to
After the central bank’s latest policy statement on
Wednesday, investors were left guessing as to whether the
CMBS loan activity
Fed, shifts into a higher policy gear in September or waits
until December.
An open sense of timing over rate rises that spurs further THOMAS HALE connected with the invest-
dollar strength and exacerbates EM/commodity weakness ment banks.”
is not good news for areas under pressure within US equity Goldman Sachs is securitis- Mr Gatfield suggested that
and bond markets. And all before the poor liquidity typical ing a loan to Blackstone the company’s proximity to
of August that can exacerbate swings in asset prices. backed by commercial real the US CMBS market —
Strip out the buoyant performance of US healthcare and estate across the UK, high- which has recovered faster
consumer stocks and you can see why the S&P 500 only lighting a growing role for than its European equivalent
stands some 2 per cent higher for 2015, weighed down by non-banks in a market that — has contributed to Black-
the energy, materials and industrials sectors. has struggled for traction in stone’s activity on the other
Another concern is how a small number of stocks are recent years. side of the Atlantic.
leading, a pattern together with lofty valuations and the Securitisation involves tak- The Goldman Sachs deal,
prospect of the first quarter of negative earnings-per-share ing loans — in this case for the which was launched last
since 2009, all suggesting that a market top beckons. financing of commercial real week and is now being mar-
Dan Greenhaus, strategist at BTIG, says: “Simply put, a estate — and packaging them keted to investors, was
stock market increasingly driven by fewer and fewer into bonds, which can then accompanied by a €316m
stocks, at valuation levels we deem ‘elevated’ as Fed policy be sold on to investors. deal from Deutsche Bank.
is expected to tighten later in the year, does not make for a The new deal, one of the “Two in one week is pretty
compelling market backdrop.” largest commercial real unheard of at this point,” said
The US corporate debt market also looks pallid. A surge estate securitisations in Jonathan Banks, a director at
in mergers and acquisitions plus huge share buybacks, has Europe this year, is based on Mount Street, which services
spurred a flood of bond issuance. Moody’s BAA average 95 per cent of a £680m single loans for CMBS. He said the
yield is back above 5 per cent, up from 4.40 per cent earlier loan, and is expected to price two deals come ahead of an
this year, while lower quality debt sold by oil and mining today. expected summer lull.
companies has been hammered. The loan — part of a refi- Other issuers are likely to
Market volatility is closely associated with any major nancing on assets acquired take advantage of a reopened
shift in Fed policy, and we are certainly seeing signs of that by Blackstone several years CMBS market after the sum-
at present. Solid US employment reports over the next six ago — is backed by a portfolio mer break, which could see
weeks could well pave the way for a September Fed move, of 42 logistics assets through- the market grow to new post-
but significant escalation in global market stress in the out the UK. crisis heights. “Towards the
coming weeks may well cast the decisive vote. The broader market for back end of May, the pipeline
securitisation has struggled of deals that we were aware
michael.mackenzie@ft.com since the financial crisis. of was actually as busy as it
Issuance of commercial has been since the crisis,”
mortgage-backed securities said Mr Gatfield.
in Europe was just €4.7bn Upcoming deals are likely
last year, compared with well to involve further examples
over €40bn in 2007, accord- of the securitisation of
More comment and data on ft.com ing to data company Trepp investment banking loans to
LLC. US private equity groups. In
The latest deal highlights June, Goldman launched an
Y Fast FT Our global economies, headed Blackstone’s rising role in Italian CMBS deal, based on a
team gives you market- by Brazil, Russia, India European real estate, and its loan to Apollo, which was
moving news and views, and China. indirect relationship with subsequently put on hold
24 hours a day, five days ft.com/beyondbrics commercial real estate secu- and is yet to be closed.
a week. ft.com/fastft ritisation in the continent, In Europe, Blackstone is
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a typically through loans from mainly relying on banks such
irreverent financial blog. look at what is driving investment banks. as Goldman to securitise
Join Paul Murphy and the global currency “What is interesting post- loans, rather than issuing
Bryce Elder for the daily market. ft.com/podcasts crisis is how dominant Black- securities backed by assets to
Markets Live session at stone as a single sponsor is in investors itself.
Y Lex Video Analysis the CMBS market,” said Charles Roberts, a partner
11am. ft.com/alphaville
and opinion from the Euan Gatfield, head of Euro- at law firm Paul Hastings
Y beyondbrics News and team on the hot issues pean CMBS at the rating LLP, suggests this may be
comment from more affecting companies and agency Fitch. “They’ve obvi- related to “limitations on its
than 40 emerging markets. ft.com/lexvideo ously got a huge market ability to take certain kinds
presence and they’re well of interest rate risk”.