FRIDAY 2 AUGUST 2019 WORLD BUSINESS NEWSPAPER EUROPE

Gillian Tett If the face fits It doesnt matter

Family offices invest in real estate as London leads the west in facial Why we should stop worrying about
the wealthy hunt for yield — PAGE 9 recognition systems — BIG READ, PAGE 7 punctuation — HENRY MANCE, PAGE 8

Deadly ground Briefing

Congo losing i Trump escalates trade war with Beijing

Ebola battle US markets turned sharply lower after Donald

Trump said the US would place a 10 per cent tariff
on $300bn of additional Chinese goods, in an
escalation of the trade war between the world’s two
Members of a safe burial team carry the largest economies. “The US will start, on September
coffin of an Ebola victim to a grave site 1st, putting a small additional Tariff of 10% on the
last month in Beni, in the Democratic remaining 300 Billion Dollars of goods and
Republic of Congo. products coming from China into our Country. This
Yesterday marked the first anniver- does not include the 250 Billion Dollars already
sary of the confirmation of the first Tariffed at 25%,” Mr Trump wrote in a tweet.
cases in the latest outbreak in Congo, the
longest and deadliest of 10 it has suf- i China video warns Hong Kong protesters
fered since the virus was first identified Beijing has given a further warning of possible
in 1976. To date, 1,803 people have died military intervention in Hong Kong with the release
in the epidemic, the worst since 11,000 of a video showing how the territory’s garrison
lives were lost in west Africa in 2014-16. would quell a violent protest.— PAGE 2
Thousands of health workers have
been deployed and more than 170,000 i Shell profits tumble by a quarter
people have received a vaccine but so far The Anglo-Dutch oil group has seen earnings fall
the outbreak has not been stopped. In a 26 per cent because of lower prices and widespread
dispatch from Beni, the Financial Times divisional weakness, triggering a close to 5 per cent
reports on efforts to halt the epidemic. drop in its share price.— PAGE 12; TAIL RISK, PAGE 11
Congo officials desperate page 3
John Wessels i Bolsonaro foe turns ally on pensions
Brazil’s house speaker Rodrigo
Maia does not share the views

EU impasse forces vote on picking

of rightwing president Jair
Bolsonaro but he has become a
reluctant ally over a crucial
pensions reform bill.— PAGE 2

candidate to follow Lagarde at IMF

i LSE clinches acquisition of Refinitiv
The London Stock Exchange has agreed to buy data
provider Refinitiv for $27bn, sealing a deal that will
turn it into a markets and data rival to Michael
Bloomberg’s empire.— PAGE 11; ANALYSIS, PAGE 13

i New UK envoy signals tough Brexit line

3 Capitals divided over nominee 3 Push to slim down shortlist 3 UK set for casting ballot
MEHREEN KHAN — BRUSSELS
VICTOR MALLET — PARIS
EU finance ministers are to vote today
on Europe’s candidate to succeed
Christine Lagarde as managing director
of the IMF in the hope of breaking an
impasse that has divided eurozone
capitals.
After weeks of negotiations that have
failed to come to a consensus, ministers
from the EU’s 28 finance ministries will
vote via email on a shortlist of at least
five names, according to officials
involved in the process.
The decision to hold a vote, an option
that had initially been rejected by some
capitals, including Berlin, was designed
to whittle down the possible candidates.
It came after Bruno Le Maire, France’s
finance minister, who has been chairing
negotiations, failed to broker a deal.
European diplomats involved in the
talks said the decision was designed to
press some candidates into withdrawing
from the race after none of the five can-
didates in the fray withdrew.
The shortlist was made up of Jeroen
Dijsselbloem, Dutch former chair of the
eurogroup of EU finance ministers; Olli
Rehn, Finland’s central bank governor;
Nadia Calviño, Spain’s finance minister;
Mário Centeno, the Portuguese euro-
group chief; and Kristalina Georgieva,
Bulgarian World Bank chief executive.
Diplomats expected Mr Dijsselbloem
and Ms Georgieva to emerge as the two
candidates in any final run-off vote.
In that case, the Brexit-backing new
UK government could have the casting
vote. As the EU third’s biggest member
David Frost, Britain’s new envoy to Brussels, has
taken a tough stand against the EU and insisted the
UK will leave the bloc on October 31 “whatever the
state, Britain’s vote may prove decisive Traditionally, Europe has nominated circumstances”.— PAGE 4
for either of the candidates, who have the head of the IMF while the US chooses
divided the support of Paris and Berlin. one of its nationals to lead the World
At a meeting of the G7 finance minis- Bank. Europe’s failure to unite on a Datawatch
ters last month, UK diplomats indicated candidate has raised expectations that
they would back a candidate from a alternative candidates, including
non-eurozone country. The hunt for Mr Carney, might stand a chance. Staycation Nearly a third
Candidates had to submit their names Christine EU capitals remain intractably % of Europeans who can’t afford of adults aged
for inclusion in the ballot by last night. Lagarde’s divided despite the urgency to unite on to go away for one week a year over 16 across
the EU say they
The vote will be held under the EU’s successor as a candidate in order to prevent emerg- Romania could not afford
qualified majority rules in which bigger IMF chief has ing economies from rallying round a Croatia a one-week
member states carry more weight. created sharp non-EU candidate. Greece annual holiday
The UK had asked for more time to divisions within Southern countries such as Spain, Italy away from home.
consider whether to field a candidate, the bloc Italy and Portugal have vehemently Ireland
The countries
said two officials involved in the talks. opposed Mr Dijsselbloem. Ms Georgieva Spain
France with the highest
The Canadian Mark Carney, Bank of has been pushed by France but has little UK proportions are
England governor, is widely regarded as support among larger EU countries. Sweden Romania, Croatia
a competent candidate but deemed by The IMF has set a September deadline 0 10 20 30 40 50 60 and Greece.
some capitals “not European enough”, for nominations and hopes to conclude Source: Eurostat
despite holding UK and Irish passports. the process in early October.

Bank of England sees 1 in 3 chance of

economy shrinking as Brexit fears rise
DELPHINE STRAUSS — LONDON contraction it has seen since the Brexit to cushion the shock of a potential EU
referendum in August 2016. exit on October 31 without a withdrawal
The Bank of England has flagged a one-
Mark Carney, the BoE governor, dis- agreement. But it said that alternative
in-three chance that the UK economy
missed suggestions it was guilty of the forecasts, stripping out these market
will shrink at the start of next year as
“gloomster” attitude decried by Boris distortions, also showed excess demand
Brexit uncertainty and global trade
Powell’s rate cut remarks tension hit growth.
Johnson, the new prime minister. “It is stoking inflation, suggesting that inter-
leave markets flustered clear the level of uncertainty is affecting est rates would need to rise after any
Even without taking into account the business,” Mr Carney said. “It is also orderly form of Brexit.
Analysis i PAGE 4 rising possibility of a no-deal Brexit, the clear there has been a substantial short- Unlike the US Federal Reserve and
BoE cut its central forecast for growth fall in investment. It is beginning to European Central Bank, the BoE
this year and next. become clear that the trade response to showed no sign of responding to the
Austria €3.80 North Macedonia Den220
Bahrain Din1.8 Malta €3.60 It predicted output would rise 1.3 per lower sterling has begun to fade.” weakening outlook by cutting rates.
Belgium
Bulgaria
€3.80
Lev7.50
Morocco
Netherlands
Dh45
€3.80
cent in both 2019 and 2020 even if it The BoE’s central forecasts were Instead, the MPC voted unanimously to
Croatia Kn29 Norway NKr35 were to cut interest rates, as markets premised on a smooth Brexit that would hold rates at 0.75 per cent, and signalled
Cyprus €3.60 Oman OR1.60
Czech Rep Kc105 Pakistan Rupee350 expect. The BoE had forecast in May boost the economy. They show growth that borrowing costs would eventually
Denmark
Egypt
DKr37
E£42
Poland
Portugal
Zl 20
€3.60
that output would grow by 1.5 per cent recovering to 2.3 per cent in 2021 and need to rise to keep inflation at its 2 per
Finland €4.50 Qatar QR15 and 1.6 per cent respectively. inflation overshooting its target, rising cent target — given an orderly Brexit
France €3.80 Romania Ron17
Germany €3.80 Russia €5.00 It added in its August inflation report to 2.4 per cent on a three-year horizon. and a recovery in global growth.
Gibraltar
Greece
£2.70
€3.60
Serbia
Slovak Rep
NewD420
€3.60
there was a 33 per cent probability of The bank acknowledged this forecast It also stuck to its position that inter-
Hungary Ft1200 Slovenia €3.50 negative growth in the first quarter of overstated inflation because it builds in est rates could move in either direction
India Rup220 Spain €3.60
Italy €3.60 Sweden SKr39 2020 if interest rates remained current exchange rates and market in the event of a no-deal Brexit.
Latvia
Lebanon
€6.99
LBP7500
Switzerland
Tunisia
SFr6.00
Din7.50
unchanged — the highest chance of a expectations that interest rates will fall BMW urges against no-deal page 14
Lithuania €4.30 Turkey TL19
Luxembourg €3.80 UAE Dh17.00

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2 ★ FINANCIAL TIMES Friday 2 August 2019

INTERNATIONAL

Hong Kong Manufacturing

China redoubles warning on protests Trade tension

and demand
Military chief ’s threat vention ahead of more planned demon- for nearly two months and started with ments in late July from China’s defence Charles Li, head of the Hong Kong
slowdown hit
coincides with PLA video
strations this weekend. They are also
the first public remarks about the
popular opposition to an extradition
bill, were “absolutely impermissible”.
ministry that the PLA can legally inter-
vene to help Hong Kong to “maintain
stock exchange, told a meeting of busi-
nesspeople that the police, and not the
Asia factories
on urban crowd control unrest from Major General Chen Daox- The bill, which would have allowed social order” if requested to do so by the PLA, should handle any protests or vio-
iang, the garrison commander. criminal suspects to be sent to China for territory’s government. lence in the territory.
PRIMROSE RIORDAN AND NICOLLE LIU Maj Gen Chen condemned the pro- trial, has sparked the territory’s worst Amid persistent accusations from The protesters view the extradition SIDDARTH SHRIKANTH,
DANIEL SHANE AND EDWARD WHITE
HONG KONG testers in remarks during a reception political crisis in two decades and led to Beijing that the US or various other for- bill as a threat to the “one country, two
celebrating the 92nd anniversary of the questions about the ability of Carrie eigners are the “black hands” behind systems” principle under which Hong Trade frictions and weak global
The head of the Chinese military in PLA on Wednesday that were made Lam, chief executive of Hong Kong, and the protests, Tung Chee-hwa, Hong Kong has enjoyed a high degree of demand are taking their toll across
Hong Kong has issued a warning to pro- public yesterday. the police to assert control. Kong’s former leader, who was at the autonomy since its handover from the Asia, show data published yesterday.
testers at the same time as the People’s In a report, the state-run China Daily In its video, the PLA showed how the PLA reception with Maj Gen Chen, UK to China in 1997. The protests have
Liberation Army released a video show- said Maj Gen Chen “voiced support for Hong Kong garrison could subdue a riot accused the US and Taiwan of orches- widened to include other demands, Manufacturing conditions in south-east
ing how the territory’s garrison was the Hong Kong police to rigorously or protest in an urban environment. trating of the demonstrations. including constitutional reform. Asia worsened for a second consecutive
capable of quelling a violent protest. enforce the law and for [Hong Kong] “One online [viewer] suggested that Ms Lam also attended. It was her sec- This week police charged a number of month in June, with factory output fall-
The comments and the video are government agencies and the judiciary the video was a warning to the seces- ond PLA event in four days. people, among them a Cathay Pacific ing for the first time in two years. Activ-
another warning from Beijing and its in punishing criminals engaged in acts sionists,” the state-run Global Times A number of establishment figures in pilot, two gym owners, a teacher and a ity also contracted across Japan, South
supporters to the city’s protest move- of violence”. said in a report on the video. Hong Kong have suggested they are not 16-year-old girl, with rioting as part of Korea and Taiwan.
ment of the possibility of military inter- The “violent protests” that have run The speech and the video follow com- in favour of a PLA intervention. the protests. In a sign the woes are likely to persist
into the second half of the year, South
Korean exports declined for the eighth
consecutive month in July.
Although China’s manufacturing
Brazil. Political detente slowdown stabilised in July and outper-
formed analysts’ expectations, it

Bolsonaro foe turns ally in pension reform remained in contraction territory.

“Manufacturers appear in a difficult
position and require stronger demand
growth to lift them out of the current
soft patch,” said David Owen, economist
at IHS Markit. Slowing overseas
The lower house Speaker has demand and the impact of Sino-US
trade friction have combined to disrupt
become an indispensable fixer supply chains across the region.
The Nikkei-Markit manufacturing
in an unwieldy parliament purchasing managers’ index for Asean
countries saw its first decline in output
ANDRES SCHIPANI — SAO PAULO for two years in July, to 49.5 from 49.7 in
On a drizzly day in Manhattan last June, below the 50 mark that separates
spring, Rodrigo Maia’s mood was as contraction from growth. Factories had
gloomy as the weather. only a marginal increase in new orders.
The Speaker of Brazil’s lower house of In Indonesia, Asean’s largest econ-
Congress was carrying a presentation omy, the sector slipped into decline for
showing that pension spending would the first time in six months, with worker
balloon to 17 per cent of gross domestic numbers reduced at their fastest pace in
product in the next four decades. With- 19 months. Conditions in Malaysia and
out reform of the pension system this Singapore continued to deteriorate,
year “we’ll enter a social collapse”, he although the pace of the latter’s decline
said on his way to a lunch with investors. moderated in June.
Luckily for Latin America’s largest Japan’s Jibun Bank Manufacturing
economy, the lawmaker from Rio has purchasing managers’ index for July
emerged as the man of the hour and a posted its third straight month of con-
reluctant ally of President Jair Bol- traction at 49.4 against 49.3 in June.
sonaro by whipping a majority of votes In South Korea, the latest IHS Markit
for a pensions reform bill to pass a cru- figures showed that new export orders
cial hurdle this month. On July 10, the for manufacturers in Asia’s fourth-
lower house of Brazil’s fragmented par- biggest economy fell at their fastest rate
liament approved it in a first-round vote in almost six years. During the month
by 379 votes to 131. the index fell to 47.3 from 47.5 in June,
More than 20 years in the planning, the third month of contraction in a row.
the overhaul that is key to shoring up South Korean exports totalled
the public finances and restoring confi- $46.14bn in July, down 11 per cent from
dence in Brazil’s sluggish economy is $51.8bn in the period a year ago but a
closer than ever to being approved. less dramatic fall than the 13.7 per cent
Mr Maia has been propelled into the Plain talker: winning less than 3 per cent of the vote. “Bolsonaro’s sons learned to use social Parliament Mr Maia has proven a critical conduit to year-on-year decline in June, according
spotlight since the rightwing Mr Bol- Rodrigo Maia Mr Maia was elected house Speaker networks before other politicians did,” lawmakers to help build support for to government data.
sonaro reached the presidency in Janu- has called the after the impeachment of Dilma Rouss- Mr Maia said, noting that such style is ‘will be the crucial economic reforms through a In Taiwan, activity in July bounced
ary. The six-term congressman does not Bolsonaro eff, the leftist president, in 2016. Under “contesting liberal democracy”. fireman mixture of skill, arm-twisting and pork- back to 48.1 from a near eight-year low
share the president’s ultra-conservative government a Mr Bolsonaro, the congressman rose in On Tuesday, Mr Maia defended media barrelling, according to analysts. of 45.5 in June, although the latest
beliefs but he does agree with the need ‘crisis factory’ prominence, pushing through economic rights in a video after Mr Bolsonaro sug- and not the Fernando Henrique Cardoso, the number still represents a contraction.
for economic reform, helping rally sup- Andre Coelho/Bloomberg reforms and acting as a counterweight gested jail time for Glenn Greenwald, arsonist’ former president, said he was “bal- The Caixin China general manufac-
port for government legislation. to the president’s culture-wars agenda the Rio-based US journalist, whose anced” and did not “confuse public with turing PMI index rebounded to 49.9
Now Mr Maia must make sure the bill and shoot-from-the-hip policymaking. news website revealed messages ques- of the electoral interests”. One political oppo- from 49.4 in June — the second consecu-
sails through the lower house next week For once in Brazil’s three-decade tioning the credibility of Brazil’s justice political nent on the left described him as the tive month that China’s manufacturing
or “what has already matured could democratic history, “parliament will be minister. “This is not in favour of Glenn, “right man for the dirty job” of pushing activity has shrunk. But the survey
rot”, before heading to two votes in the the fireman and not the arsonist” of the this is in favour of our freedom of scene through the bill. reported business confidence picking
Senate for its final approval. political scene, Mr Maia said. expression,” Mr Maia said. “This may be victory of the Bolsonaro up. It pointed to firmer domestic de-
“Imagine, if the reform does not pass, However, the congressman has not The soft-spoken Speaker has reined in government, but Maia has a relation- mand for manufactured goods, which
we’ll walk to a recession,” he said. shied away from criticising the scandal- one of the world’s most unwieldy parlia- ship with lawmakers that the govern- partly offset weak export orders amid
Mr Maia, of the centre-right prone government, calling it a “crisis ments, with its almost 30 parties and ment doesn’t have,” said Aline Souza, a trade tensions and a global slowdown.
Democratas party, hails from one of factory” where Mr Bolsonaro’s fixation constantly shifting loyalties. “He’s a political analyst. Julian Evans-Pritchard, senior China
Brazil’s best-known political families. on identity politics “hampers” eco- backroom operator who is respected by He has even won over members of Mr economist at Capital Economics, said:
He was born in Santiago, Chile, where nomic reforms. the lawmakers, the grand majority of Bolsonaro’s base. Alexandre Frota, an “The uptick in July manufacturing PMIs
his father, César, a former communist For this, he has been targeted on the parties look at him and they see adult film actor turned congressman was the result of domestic strength
militant, was in exile during Brazil’s mil- social media by Mr Bolsonaro’s support- leadership in him,” said Thiago de with the president’s Social Liberal party, overshadowing external weakness.”
itary dictatorship. On his return his ers, who have called for a shutdown of Aragão, a political consultant with Arko said: “Be it with the moderates, the right Zhengsheng Zhong, director of macr-
father served three terms as Rio mayor. Congress. He comes under “constant, Advice in Brasília. or the left, Rodrigo has been working in oeconomic analysis at CEBM Group,
In 1998, after unfinished studies in violent pressure from the ‘Bolsomin- Some members of the Bolsonaro a way that is extremely cohesive.” said: “Business confidence rebounded,
economics and a stint as banker, he was ions’”, a congressional staffer close to Mr administration have championed the Asked if he was becoming Brazil’s reflecting the strong resilience in the
elected to Congress aged 28. An unchar- Maia said, among them Carlos Bol- pension reform, including Paulo most powerful person, Mr Maia chuck- economy. Policies such as tax and fee
ismatic figure, he failed to succeed his sonaro, the president’s second son and Guedes, finance minister, and Rogério led: “I am just doing my job and it is not reductions designed to underpin the
father as Rio mayor seven years ago, de facto spokesman. Marinho, social security secretary. But an easy one.” economy had an effect.”

Defection War compensation

MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription Pyongyang’s former Rome Japan to remove S Korea from
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
envoy in hiding outside Italy export friendly country list
Trump vs the Valley A Five Star plan? Dear Don...
Tech titans need to minimise Italy’s populists are trying to woo May’s first stab at the break-up
political risk — GILLIAN TETT, PAGE 13 the poor — BIG READ, PAGE 11 letter — ROBERT SHRIMSLEY, PAGE 12

HMRC warns Lloyd’s of Brussels Insurance market

to tap new talent pool with EU base
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80
Briefing
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017

customs risks THE END

i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

admitted” including members of the Japan has already imposed controls

dealmaking, as US companies ride a Trump-fuelled HOW DRIVERLESS

being swamped
equity market rally to hunt for bargains across the

OF THE
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

i Report outlines longer NHS waiting times

A report on how the health service can survive
TECHNOLOGY IS
CHANGING AN
EDWARD WHITE AND SONG JUNG-A ROBIN HARDING — TOKYO
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE
by Brexit surge
some surgical procedures will be scrapped.— PAGE 4 Censors and sensitivity
SEOUL EDWARD WHITE AND SONG JUNG-A
ruling Kim family. on three chemicals crucial to South
i Emerging nations in record debt sales Warning: this article may be
FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

government debt in the first quarter of this year,
upsetting — LIFE & ARTS
taking advantage of a surge in optimism toward

SEOUL
emerging markets as trade booms.— PAGE 15

3 Confidence in IT plans ‘has collapsed’

Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
How To Spend It
While the defection of a senior official Korea’s world-leading semiconductor
A survey has revealed that a
3 Fivefold rise in declarations expected record 455 tall buildings are
planned or under construction over disputed painting of Jane Austen

A South Korean legislator said a former

JAMES BLITZ — WHITEHALL EDITOR adjust its negotiation position with the in London. Work began on

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

fresh tax probe

holds the potential to complicate inter- Japan was set to remove South Korea industry: fluorinated polyimide, pho-
leaves the EU, customs authorities have In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
admitted to MPs.
HM Revenue & Customs told a parlia-
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings

North Korean diplomat in Italy was

mentary inquiry that the new system
needed urgent action to be ready by
March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time “has collapsed”.
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland
complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image

national diplomatic efforts between from its export “white list” at a cabinet toresists and hydrogen fluoride etching
Setting up a digital customs system CDS, indicating it would be delivered on
has been at the heart of Whitehall’s time. But last month, it wrote to the i HSBC woos transgender customers
Brexit planning because of the fivefold committee saying the programme had The bank has unveiled a range of gender-neutral it followed “a strategy offull client tax

now known to have left that country

RALPH ATKINS — ZURICH
increase in declarations expected at been relegated to “amber/red,” which DUNCAN
titles such asROBINSON — BRUSSELS
“Mx”, in addition to Mr, Mrs, Misscompliance”
or but was still trying to
British ports when the UK leaves the EU. means there are “major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.

FINANCIAL TIMES
About 53 per cent of British imports
come from the EU, and do not require
checks because they arrive through the
single market and customs union. But
apparent in a number ofkey areas”. Credit
needs Suisse hascustomers.
of transgender been targeted by
— PAGE 20 HM Revenue & Customs said it had
HMRC said last night: “[CDS] is on sweeping tax investigations in the UK, launched a criminal investigation into
track to be delivered by January 2019, France and the Netherlands, setting suspected tax evasion and money laun-
and it will be able to support frictionless back Switzerland’s attempts to clean up dering by “a global financial institution
Datawatch

(Deposito Legal) M-32596-1995;

Seoul, Washington and Pyongyang — meeting today in an escalation of a dis- gas. Japan has a dominant global market
Theresa May announced in January that international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
Brexit would include departure from the EU . . . Internal ratings are designed The Swiss bank said yesterday it was tax authority added: “The international
Terror attacks inwith
co-operating western Europe after
authorities reach
itsattacks — of this investigation sends a clear The lure of the exotic

and is under protection in an unidenti-

both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
to make sure that each project gets the Recent
focus and resource it requires for suc- offices in London, Paris and Amsterdam notably the message
2011 that there is no hiding place for
cessful delivery.” were contacted
Highlighted attack byOthers massacre bythose seeking to evade tax.”
local officials Robin Lane Fox on the flair
“concerning client tax matters”. Anders BreivikDutch in prosecutors, who initiated the
HMRC’s letters to the select commit- of foreign flora — HOUSE & HOME

Bracken House, 1 Friday Street,

The revelations about the system,
called Customs Declaration Service, are
likely to throw a sharper spotlight on
tee, which will be published today, pro-
vide no explanation for the rating
change, but some MPs believe it was
Lloyd’s of London chose Brus-
sels over “five or six” other
insurers to follow. Most of the
business written in Brussels
EU, with Dublin and Luxem-
bourg thought to be more likely
AFP
parts in Germany wereBrussels
while Australia’s revenue department
Norway
said it was investigating a Swiss
Publishing Director, Lionel Barber;
Norway, the
Dutch authorities said their counter- action, said they seized jewellery, paint-
attacks in Paris
also involved,
and Nice, and
ings and gold ingots as part of their
Brussels suicide
Nice bank.
the while French officials said their
probe;
investigation had revealed “several

whether Whitehall can implement a
host of regulatory regimes — in areas
caused by Mrs May’s unexpected deci-
sion to leave the EU customs union.
cities in its decision to set up an
EU base to help deal with the
will be reinsured back to the
syndicates at its City of London
homes for the industry. But Paris
Mr Nelson said the city won on The inquiries threaten to undermine
efforts by the country’s banking sector
given the fresh details about the Kim pute over wartime forced labour. share for each.
bombings — have
thousand” bank accounts opened in
bucked the trend
Switzerland and not declared to French

Publishing Company, The Financial Times Limited,

fied country, in a fresh embarrassment
ranging from customs and immigration Timetable & Great Repeal Bill page 2 expected loss of passporting headquarters, pictured above. its transport links, talent pool of generally low
to overhaul business models and ensure tax authorities.

London EC4M 9BT. to agriculture and fisheries — by the

time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance mar-
ket, said he expected other
The Belgian capital had not
been seen as the first choice for
London’s specialist insurance
groups after the UK leaves the
and “extremely good regula-
tory reputation”.
Lex page 14
Insurers set to follow page 18
customers meet international tax
requirements following a US-led clamp-
fatalities from

western Europe
The Swiss attorney-general’s office
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in
said it was “astonished at the way this
down on evaders, which resulted in operation has been organised with the
billions of dollars in fines. deliberate exclusion of Switzerland”. It

registered office as above. Local Representative office;

The probes risk sparking an interna- demanded a written explanation from
tional dispute after the Swiss attorney- Dutch authorities.

City watchdog sends a clear message as

regime Mr Jo might know — Mr Lankov Tokyo insists that its move is a regu-
general’s office expressed “astonish- In 2014, Credit Suisse pleaded guilty
ment” that it had been left out of the in the US to an “extensive and wide-
THE RISE OF ECO-GLAM

for North Korean leader Kim Jong Un.

actions co-ordinated by Eurojust, the ranging conspiracy” to help clients
EU’s judicial liaison body. evade tax. It agreed to fines of $2.6bn.
Escape the taper trap
banker loses job over WhatsApp boast How high earners can evade

Subscriptions & Customer service

Credit Suisse, whose shares fell 1.2 per

subject ofinvestigations in the Nether-

lands, France and the UK. The bank said in Paris C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. ISSN
Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
Houlder in London, and Michael Stothard
Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
a pension headache — FT MONEY

said Pyongyang’s representatives According to one former minister, Japan lar, bureaucratic decision on arms con-
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to
JENNIFER THOMPSON — LONDON

Tel: +44 207 775 6000, fte.subs@ft.com,

Shutdown risk as border
A boastful WhatsApp message has cost
a London investment banker his job
and a £37,000 fine in the first case of
Christopher Niehaus, a former Jeffer-
ies banker, passed confidential client
information to a “personal acquaint-
ance and a friend” using WhatsApp,
according to the FCA. The regulator said
ban people from installing apps on their
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set “a precedent
in that it shows the FCA sees these mes-
1135-8262.
Brussels takes tough stance on Brexit
with Spain handed veto over Gibraltar
regulators cracking down on commu- 390_Cover_PRESS.indd 1 19/01/2017 13:57

wall bid goes over the top nications over Facebook’s popular Mr Niehaus had turned over his device saging apps as the same as everything

www.ft.com/subscribetoday Congressional Republicans seeking to

avert a US government shutdown after
April 28 have resisted Donald Trump’s
attempt to tack funds to pay for a wall
on the US-Mexico border on to
chat app.
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
to his employer voluntarily.
The FCA said Mr Niehaus had shared
confidential information on the messag-
ing system “on a number of occasions”
last year to “impress” people.
Several banks have banned the use of
else”.
Information shared by Mr Niehaus
UAE: Al Nisr Publishing LLC, P.O.Box 6519. Dubai. Editor
Jo Song Gil, Pyongyang’s acting ambas- abroad were often “kept in the dark” was “100 per cent sure” to go ahead with trol but it is widely regarded as retalia-
included the identity and details of a
client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would

Advertising
stopgap spending plans. They fear
that his planned $33bn increase in
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
staff’s communication.
Several large investment banks have
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
new media from work-issued devices,
but the situation has become trickier as
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
his mortgage if a deal was successful.
Mr Niehaus was suspended from Jef-
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
in Chief: Lionel Barber.
The EU yesterday took a tough opening
stance in Brexit negotiations, rejecting
Britain’s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
fully been singled out for unfavourable
treatment by the council at the behest of
Spain”. Madrid defended the draft
clause, pointing out that it only reflected
“the traditional Spanish position”.
require “existing regulatory, budgetary,
supervisory and enforcement instru-
ments and structures to apply”.
Mr Tusk wants talks on future trade
to begin only once “sufficient progress”

Qatar: Dar Al Sharq, PO Box 3488, Doha-Qatar. Tel: +97 sador in Rome since 2017, in early Janu- about government secrets. a move that could require exporters to tion against a ruling by South Korea’s
to accept the proposals. encryption system that cannot be as iPhone-loving staff spurn their work- Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and

Tel: +44 20 7873 4000 asiaads@ft.com,

US budget Q&A and
Trump attack over health bill i PAGE 8
accessed without permission from the
user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
for comment.
Additional reporting by Chloe Cornish
Lombard page 20
About 2.3m people will benefit from
today’s increase in the national living
wage to £7.50 per hour. But the rise
will pile pressure on English councils,
which will have to pay care workers a
European Council president Donald
Tusk’s first draft of the guidelines,
which are an important milestone on
the road to Brexit, sought to damp Brit-
ain’s expectations by setting out a
Mr Tusk’s text left room for negotiators
to work with in coming months. Prime
minister Theresa May’s allies insisted
that the EU negotiating stance was
largely “constructive”, with one saying it
citizen rights, which Whitehall officials
believe means simultaneous talks are
possible if certain conditions are met.
Boris Johnson, the foreign secretary,
reassured European colleagues at a

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aged 25 and over — earn less than the
44557825
“phased approach” to the divorce proc-
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drawal terms.
was “within the parameters of what we
were expecting, perhaps more on the
upside”.
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation

ary was widely reported as having aban- “They are suspicious of their own dip- obtain licences when they ship a range Supreme Court last autumn that
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Analysis i PAGE 4 300-year territorial dispute between tion deal could be problematic. Man in the News: David Davis page 11

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his wife, after the pair went missing two diplomat is a security risk, that person South Korea. companies, including Mitsubishi Heavy
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1244.85
50.35
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www.exec-appointments.com Turkey: Dunya Super Veb Ofset A.S. 100. Yil Mahallesi
34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24. months earlier. cannot be watched around the clock,” The decision to remove South Korea Industries, for forced labour during the
Published by: The Financial Times Limited, Sweden: Responsible Publisher - Christer Norlander Opposition lawmaker Lee Eun-jae he said. from Japan’s list of friendly countries second world war.
Bracken House, 1 Friday Street, London EC4M 9BT.
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Editor: Lionel Barber.
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Barber. Responsible for advertising content, Jon Slade. Times and its journalism are subject to a self-regulation gave no further details. fortified borders and expressed his intelligence-sharing pact in retaliation. pensation to South Korea.
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Friday 2 August 2019
Congo officials
desperate to
break Ebola
‘vicious circle’
Health experts call for rethink of strategy
as progress against virus remains elusive
TOM WILSON — BENI, DEMOCRATIC
REPUBLIC OF CONGO
Seven grave diggers in medical smocks,
surgicalglovesandplasticbootsliftedthe
coffin from the back of a truck and began
to pick their way through more than
200 fresh burial mounds, whose simple
wooden crosses cast long shadows.
Masika Kahongya was 19 and newly
married when she died last month after
contracting the Ebola virus. She now lies
in a crowded forest clearing outside the
town of Beni, in the Democratic Repub-
lic of Congo, a few metres from the grave
of her three-month-old son, Innocent.
The mother and child are among 1,803
people killed in the Ebola outbreak since
the first cases were confirmed near Beni
a year ago. Surpassed only by the epi-
demic that claimed more than 11,000
lives in west Africa from 2014-16, it is the
longest and deadliest in Congo’s history.
Each of the country’s previous nine
outbreaks since 1976, when the virus
was first identified, occurred in remote
regions and were controlled within
three months. This time, thousands of
health professionals have been
deployed and more than 170,000 people
have received an effective trial vaccine.
Yet May, the tenth month, was the dead-
liest so far, and a further 349 cases were
confirmed in July. Yesterday, neigh-
bouring Rwanda, worried about the
spread of the virus, shut its border.
The accepted explanation for the fail-
ure of the international response has
been to blame the low-level conflict that
has destabilised eastern Congo for two
‘Community deaths are
the worst scenario and
make it difficult to
control the epidemic’
decades. The presence of armed groups
in North Kivu province made it difficult
to reach victims and administer vaccina-
tions, the country’s health ministry and
the World Health Organization has said.
Some members of the response
effort have been attacked and medical
centres burnt down. But dozens of inter-
views with health professionals, aid
workers, victims and their families
paint a more complex picture of a
response that has succeeded in some
areas and failed in others.
On the red-dirt roads across the
region, tens of thousands of people are
stopped each day to have their hands
disinfected and temperatures taken. In
the new Ebola treatment centres, doc-
tors deliver expert care. The problem,
according to the health ministry, is that
up to 40 per cent of Ebola victims ignore
official advice to visit such centres, and
instead die at home and infect others.
“Community deaths are the worst sce-
nario and make it difficult to control the
epidemic,” said Gaston Tshapenda, the
ministry’s senior official in Beni. “We
need to break this vicious circle and
establish trust with the community.”
Clovis Mutsuva, a youth group leader,
said the population had good reason to
be suspicious. Last year, the govern-
ment in Kinshasa, the capital, used the
outbreak as an excuse to cancel a presi-
dential election in opposition-voting
Beni and nearby Butembo, despite rec-
ommendations from the health minis-
try that it would be safe to proceed.
“That’s the source of the resistance,”
Mr Mutsuva said. Health workers with
the government and WHO have treated
communities poorly, he added, issuing
ultimatums rather than advice.
There is also a perception that some
Conflict is complicating the response to the Ebola outbreak in DRC
Instability in the region
has made people suspicious
of authorities and is impeding
response measures
DEMOCRATIC REPUBLIC
OF CONGO
Beni
Conflict sites* Butembo
Cumulative cases
10
100
500
Goma RWANDA
Sources: DRC Ministry of Health, ACLED
★ FINANCIAL TIMES 3
INTERNATIONAL
Grief: family
members view
the body of their
relative before
the safe burial in
Beni, left; health
workers tend to
a patient inside
people have profited from the response. an Ebola
Hundreds of expensive off-road vehi- treatment
cles ply the region’s bumpy roads and centre, above;
“Ebola business” has become a refrain the funeral of an
among locals puzzled by the big inflow Ebola victim
of money into their region. John Wessels/FT
“Where were they when our people
were hacked to death by armed groups,
or when thousands perished from
malaria?” Mr Mutsuva asked.
That failure to build trust means
doubts linger, even in well-educated
families. “The response brings us noth-
ing . . . just corpses and more corpses,”
said Hussein Wabuzi, a former parlia-
mentary candidate, whose sister-in-law
died from the virus last month.
At his son’s bedside in the Beni treat-
ment centre, Fauzi Muhindo was hope-
ful. He could see and talk to eight-year-
old Kambale but they could not touch
because the boy was enclosed in a clear
plastic treatment cube.
The technology was developed after
the west African outbreak and allows
medics to care for patients without risk
of infection. “The rumours on the out-
side and the reality [inside the centre] is
very different,” said Mr Muhindo. “[It]
is so much better than I was told.”
But a breakthrough against the virus
remains elusive. Anne Marie Pegg, a
Médecins Sans Frontières doctor who
co-ordinates the aid group’s efforts in
eastern Congo, said the issue was not the
implementation of the response, but
with the strategy itself.
After the experience in west Africa
when the health services of Sierra Leone,
Guinea and Liberia collapsed under the
2014-16 outbreak, the response in
Congo has focused on creating a parallel
health system where suspected cases
are diverted into specialist facilities.
In hindsight, given that the Congolese
epidemic has so far totalled 2,593 cases
versus 28,616 in west Africa, it was the
wrong approach, she said. Instead,
money should have been invested in
building up existing health centres to
test patients before sending confirmed
cases on for treatment, Ms Pegg said.
“You can have the best Ebola treat-
ment centre on the planet, but if people
never get to it, it cannot help.”
In response to pressure from aid agen-
cies and the threat that the virus could
extend into new areas, the WHO last
month declared the outbreak an inter-
national emergency, the highest level of
global health crisis and only the fifth
time the designation has been used.
Three days later, Congo’s President
Felix Tshisekedi set up a committee
headed by Jean-Jacques Muyembe, a
respected virologist, to lead the
response. Mr Muyembe, 77, was one of
two people dispatched to the Ebola river
in 1976 to investigate the first known
cases of the disease. He has previously
been critical of the response and is
expected to consider new approaches.
That could include the rollout of a sec-
ond trial Ebola vaccine being developed
by US pharmaceutical group Johnson &
Johnson. Its use was blocked last month
by the then health minister, Oly Ilunga,
who said it would undermine commu-
nity trust in the Merck vaccine cur-
rently being delivered. He quit days
after the Muyembe committee was
established, decrying “interference”.
For experts such as Peter Piot, direc-
tor of the London School of Hygiene &
Tropical Medicine, this approach could
help turn the tide with a vaccination
programme in areas where the virus has
not yet been detected. This would create
a “curtain” of immunised people around
the epidemic, providing a window to
bring it under control, he explained.
UGANDA
Kampala
*Includes violence against civilians,
riots, protests, battles, explosions,
and strategic developments.
Conflicts since Aug 1 2018,
cases to July 24
4 ★ FINANCIAL TIMES Friday 2 August 2019

INTERNATIONAL
GLOBAL INSIGHT
Brexit
WASHINGTON

UK reaffirms plan for October EU split Edward

Emissary repeats demand that the UK would leave the EU on
31 October whatever the circum-
for removal of Irish
backstop from accord
stances,” said a spokesman for the UK
government.
Mr Frost’s arrival in Brussels marks
MEHREEN KHAN — BRUSSELS
GEORGE PARKER — LONDON
an abrasive new phase in EU-UK rela-
tions as Mr Johnson “turbocharges”
Boris Johnson’s new envoy to Brussels
has told EU counterparts that the UK
Britain’s no-deal planning. Sajid Javid,
UK chancellor of the exchequer, yester-
day announced £2.1bn of new funding
will leave the bloc on October 31 “what- for a no-deal exit.
ever the circumstances” in the first The EU has held firm on the contents
outgoing president of the commission,
are expected to have their first meeting
on the sidelines of a G7 summit in
Biarritz this month.
Germany’s Angela Merkel and
France’s Emmanuel Macron will also be
in attendance at the G7.
EU officials do not expect Mr Johnson
to arrive in Brussels before the Conserv-
ative party’s conference in the autumn,
setting up a showdown with EU leaders
at a summit in mid-October, just weeks
Luce
Frost’s spent this week untangling his final
links to the Brexit process before leaving
arrival in
Brussels
on a family holiday, telling friends he
was relieved to be out of the political line
of fire. Mark Sedwill, cabinet secretary,
Obama quietly pushed
marks an
abrasive
was among those who believed the civil
servant, who began his career at the
aside by Democrats
new phase
Treasury, was unfairly blamed for car-
rying out Mrs May’s instructions.
Mr Robbins was an architect of the
vying for highest office
in EU-UK “Chequers plan”, which envisaged Brit-
relations ain retaining close economic links with

meeting between the new government’s
team and the European Commission.
David Frost, the government’s Brus-
sels “sherpa” — an emissary who pre-
pares summits for heads of government
— held three brief meetings with senior
officials in the commission on Wednes-
day and yesterday to repeat the UK’s
demand to remove the Irish backstop or
risk a no-deal Brexit in 90 days’ time.
“[Mr Frost] explained the UK posi-
tion, as set out by the prime minister,
of the withdrawal agreement, negoti-
ated by Mr Johnson’s predecessor,
Theresa May, insisting it will not reopen
the terms of the so-called backstop,
which seeks to avoid a hard border on
the island of Ireland. Mr Johnson has
described it as “anti-democratic” and
has said he wants it “abolished”.
“Both sides reiterated their posi-
tions,” said a spokeswoman for the
commission.
Mr Johnson and Jean-Claude Juncker,
Washington. Monetary policy
ahead of the planned exit date.
“Nobody knows what Boris is up to,”
said one senior diplomat, who predicted
any no-deal scenario could be “man-
aged” or chaotic depending on Mr John-
son’s choices.
Mr Frost has replaced Olly Robbins,
drawing a line under his two-year spell
as Mrs May’s Europe adviser and chief
Brexit negotiator, during which time
Brexiters accused him of being part of a
pro-EU establishment plot. Mr Robbins
I
the EU. It sparked the resignation last
year of David Davis, Brexit secretary,
and Mr Johnson, then foreign secretary.
The fact that the Chequers plan was
drawn up in 10 Downing Street — and
was at odds with the separate proposal
being drawn up by Mr Davis at the same
time — convinced many Tory MPs that
Mr Robbins had undue influence over
Mrs May.
Philip Stephens page 9
BMW warning page 14
t is one thing for Donald Trump to reverse everything
Barack Obama did. His quest is nearing completion.
From the Iran nuclear deal to the Paris climate agree-
ment, Mr Trump is stamping on anything with his
predecessor’s name on it.
The unfinished task is Obamacare, which Republicans
have only partially disabled. It is thus ironic that most
Democrats vying to replace Mr Trump would finish the job
for him. Very few are promising to restore Obamacare. The
main exception is Joe Biden, who, as Mr Obama’s number
two, helped enact the Affordable Care Act. Even Mr Biden,
however, is conflicted about whether to boast of his Obama
association, or change the subject.
Nobody in the Democratic presidential debates has
attacked Mr Obama directly. Their distancing is no less
emphatic for its stealth. This too can be blamed on Mr
Trump. In addition to his scorched earth war on the
Obama presidency, Mr Trump has destroyed its premise.

Fed chief faces challenge over easing
Powell’s lack of clarity on deep
rate cuts upsets markets after
weeks of dovish messages
JAMES POLITI — WASHINGTON
COLBY SMITH — NEW YORK
After weeks of market pressure and
internal debate, Jay Powell, the Federal
Reserve chairman, pulled the trigger on
the US central bank’s first interest
rate since the financial crisis.
That was the easy part.
While Wednesday’s announcement of
a 25-basis-point cut was in line with
market expectations, the press confer-
ence that followed showed how chal-
lenging Mr Powell will find guiding
investors on what happens next.
When the Fed chairman said that the
move was a “mid-cycle adjustment in
policy” — not the start of a full-blown
easing cycle, which would imply multi-
ple and possibly deep rate cuts —
investors were spooked.
“The press conference muddied the
waters,” said Julia Coronado, an econo-
mist at MacroPolicy Perspectives. “Even
if the Fed’s own thinking hasn’t changed
much, and the bar is still very low for
another rate cut, the lack of clarity on
the motivation and the baseline think-
ing and the triggers for action leave mar-
kets more confused.”
Mr Powell’s unwillingness to commit
to deeper monetary easing with great
force represented a contrast to the con-
sistently dovish messages sent by Fed
officials in the weeks leading up to the
Fed meeting in a series of speeches, con-
gressional testimony and media
appearances.
Mr Powell and his colleagues had laid
out the rationale for preventive easing
in great detail as a way to tackle low
inflation and interest rates around the
world and protect the US from weaker
conditions in the world economy,
including the impact of trade tensions.
At one point two weeks ago, the
dovish drumbeat had grown so loud
that some investors were even betting
that the Fed could act more aggressively,
with an immediate cut of 50bp, with
several more to follow before the end of
the year.
Yet while the Federal Open Market
Committee statement signalled that the
Fed would “act as appropriate to sustain
the expansion”, suggesting it still had a
bias towards easing, Mr Powell’s
remarks stressed that the central bank
would look carefully at the data before
making its next move — so much more
Mid-cycle stimulus could not be guaranteed. The
adjustment: dissent of two FOMC members — Esther
Jay Powell George of the Kansas City Fed and Eric
addresses the Rosengren of the Boston Fed — may
media on have factored into the more cautious
Wednesday approach to easing described by Mr
in Washington, Powell. Both officials had signalled they
where his wanted to see more evidence of a real hit
comments to the US economy before approving
spooked interest rate cuts. No one dissented by
investors calling for more dramatic easing.
Sarah Silbiger/Reuters “Chair Powell appeared very reluc-
tant to suggest that additional rate cuts
were likely,” said Eric Winograd, senior
US economist at AllianceBernstein, and
“even then, he emphasised that if there
are additional cuts it would likely be a
brief cycle”.
Although equity markets dropped
sharply during Mr Powell’s press confer-
ence, they did recover some ground
after he indicated the Fed did not intend
to stop at “just one” interest rate cut.
If there is a benefit of Wednesday’s
market whipsaw to the Fed chair, it is
that the central bank may have wiggled
out of a preset easing path that it was not
entirely comfortable with.
“Today’s Fed events may have given
risk markets a little indigestion, but
they also bought the Fed a little more
flexibility going into the next FOMC
meeting,” wrote Michael Feroli, an
economist at JPMorgan. “While today’s
move was motivated by global growth,
trade policy and inflation develop-
ments, we expect September’s decision
‘The danger now is that by
dimming expectations for
future rate cuts, it could
trigger the opposite . . . ’
will also depend on domestic growth
developments.”
A clear-cut decision for the Fed may
not be simple even then. Trade negotia-
tions between the US and China have
resumed, with a new round expected in
September, but with expectations of
limited progress towards a lasting
peace. Economic data have shown a
split between strong consumption and
employment on one side, and weak
investment and manufacturing figures,
which may not be resolved one way or
the other. In his press conference, Mr
Powell did suggest that Fed policy had
already been successful in that the
expectations of a rate cut had led to bet-
ter financial conditions, helping support
the economy. But the danger now for the
Fed is that by dimming expectations of
future rate cuts, it could trigger the
opposite dynamic.
Some economists are adjusting to the
likelihood of a more gradual, cautious
Fed easing by predicting a delay and
slowing in the pace of interest rate cuts,
rather than a walkback or a pause.
But on Wall Street, there was disap-
pointment that a new era of easier
money that markets had encouraged
and warmed to in recent months was
not a done deal.
“The whole purpose of the cut was to
signal that they are aware of what was
going on in the world and act on a pre-
emptive basis,” said Krishna Memani of
Invesco. “While I fully understand the
desire to set market expectations, he
had many more opportunities down the
road to do so. You can always count on
Jay Powell to mess up a good thing.”
Editorial Comment page 8
Mr Obama was elected on the lofty vow of finding what
Americans have in common. There was no red or blue
state America in his worldview — only a united America.
Was that only a decade ago? To Democrats, Mr Trump’s
presidency started in the year zero. Their continued shock
at Mr Trump’s election outweighs their nostalgia for Mr
Obama’s 2008 campaign. That is one reason Mr Biden’s
lead is so shaky. Unlike the other 23 candidates, he believes
Mr Trump is an aberration. Defeat him in 2020 and the US
can return to the certainties of the Obama years.
Few others share Mr Biden’s upbeat vision. America is
too bitterly divided to be healed by gauzy hopefulness. Mr
Obama came from a place
of magnanimity. That is
also Mr Biden’s senti-
Their shock at
ment. Most other candi- Trump’s election
dates have moved on to
vengeance. It would
outweighs nostalgia
make no sense for Demo- for Obama’s
crats to revive talk of
“purple America” when
2008 campaign
they are calling for Mr
Trump’s impeachment.
Mr Trump has also radicalised Democrats. In retrospect,
the Obama administration looks like the epitome of the
establishment. It was full of Wall Street alumni. As George
Packer, the writer, put it: “Obama was a technocrat dis-
guised as a visionary.”
Reaction against his lack of vision is one reason why
many of the leading candidates, including Elizabeth War-
ren and Kamala Harris, have joined Bernie Sanders’ call
for single payer healthcare. It is also why Mr Biden was
grilled so hard by fellow candidates about whether he pri-
vately objected to Mr Obama’s deportation of more than
2m illegal immigrants. Mr Biden pleaded confidentiality. It
is an awkward fact that Mr Trump has not yet come close
to emulating Mr Obama’s deportation record.
In another age, Democrats would be vowing to restore
what Mr Trump is undoing. Instead they are promising a
radical departure. Not even Mr Biden would be content
with rejoining the Paris climate agreement. By the stand-
ards of the “green new deal”, the accord Mr Obama negoti-
ated reeked of caution. Mr Obama pursued an “all of the
above” energy strategy. Mr Biden on Wednesday came
close to vowing to abolish all fossil fuels. In 2009, Mr
Obama told Wall Street executives that he was all that was
standing between them and the pitchforks. Today’s Demo-
crats are the pitchforks. Bill de Blasio, mayor of New York,
even has a website called “tax the hell” out of the rich.
What then will remain of the Obama legacy? The most
radical aspect of Mr Obama’s election was his ethnicity. As
America’s first non-white president, he made history. Mr
Trump’s racial goading has complicated that national
redemption. Yet there is nothing Mr Trump can do to erad-
icate Mr Obama’s example. Half of the candidates on the
stage with Mr Biden on Wednesday were non-white,
including Ms Harris, his chief rival. His other rivals are Ms
Warren, a white woman, Peter Buttigieg, a gay married
man, and Bernie Sanders, a socialist. Next in line are Julián
Castro, a Mexican-American, and Cory Booker, an African-
American.
Such a field would have been inconceivable a few years
ago. As he surveys today’s wreckage, Mr Obama can draw
on one other consolation: at least he merits the occasional
mention. Bill Clinton, by contrast, has vanished. In the age
of #MeToo, America’s 42nd president is persona non grata.
Democrats are busy purging the past. Given the mood, it
would be a surprise were Mr Biden to make it to the
finishing line.
edward.luce@ft.com

Supply chain

Struggles of small cogs in German car export machine point to trouble on a bigger scale
GUY CHAZAN — BERLIN
The woes of a small equipment maker
have become a symbol of the impact of
global trade tensions, fears of a hard
Brexit and a cooling Chinese market on
the German car industry.
Eisenmann, which makes paint lines for
car plants, said this week it was filing for
insolvency. The company, which
employs more than 3,000, blamed prob-
lems with a series of big projects carried
out in 2018: costs had been miscalcu-
lated and milestones missed, and there
had been difficulties with suppliers,
resulting in a “big annual loss”. Michael
Keppel, chief restructuring officer, said:
“We had to act quickly and resolutely.”
Eisenmann’s problems are the latest
sign of trouble in one of the main pillars
of Germany’s export success and coin-
cide with increasing signs that the coun-
try is facing a broader downturn.
The economy remains largely
healthy, with unemployment near
record post-reunification lows, but busi-
ness confidence has become negative
across all sectors bar construction. The
Bundesbank said last week that gross
domestic product probably contracted
in the second quarter, with “no sign yet
of a recovery in exports and industry”.
DIW, the think-tank, expects the
weakness to continue, forecasting eco-
nomic output will shrink 0.1 per cent in
the third quarter amid signs the indus-
trial slowdown is spreading to the wider
economy. “Orders are deteriorating,
consumers are becoming more sceptical
and even the labour market, which has
been robust until now, is losing momen-
tum,” said Claus Michelsen of DIW.
The forecast coincided with further
signs of a slowdown across the euro-
zone. The economy of the single cur-
rency area expanded 0.2 per cent in the
second quarter from 0.4 per cent for the
first three months of the year, data pub-
lished by Eurostat showed.
Germany’s industrial weakness has result of falling sales in the US and
been particularly marked in the auto- China. Audi sold 4.5 per cent fewer cars
motive sector, in which production in the first half of the year. The industry,
declined 12 per cent in the first half of which is critical to Germany’s economic
this year. This week Daimler, maker of strength, sustains 820,000 jobs, pro-
Mercedes-Benz cars, reported a €1.6bn duced total revenues of €423bn in 2017
loss in the second quarter, partly as a and contributes about 5 per cent to GDP.
But it is in trouble, not least in China,
Body blow: its biggest market. Passenger vehicle
Eisenmann sales there fell 4 per cent to 23m last
supplies paint year and dropped 14 per cent in the first
line equipment half of this year.
to car plants “The German car industry is in a
such as the really critical situation,” said Stefan
Ford factory Bratzel, head of the Center of Automo-
in Cologne tive Management. Carmakers strug-
Krisztian Bocsi/Bloomberg gling with falling sales and trade worries
also had to invest heavily in the shift to
electric vehicles.
“All of them have had to reduce costs
because they need the money for invest-
ment, and that is having a knock-on
effect on suppliers,” said Mr Bratzel.
Continental, Europe’s largest publicly
listed auto technology supplier, cut its
2019 guidance last week as well as its
forecast for production across the auto-
motive sector. Schaeffler, a parts maker,
this week revised down its forecast for
profit and revenues, saying it expected
global car production to fall 4 per cent in
2019. In February it had predicted a fall
of just 1 per cent.
Eisenmann still hopes it can survive
as a going concern. It is seeking a “strate-
gic partner” and has had a number of
expressions of interest. But it is unlikely
to be alone in its predicament.
“The carmakers’ profit warnings, the
decline in production and sales . . . that
is impacting all the suppliers, big and
small alike,” added Mr Bratzel.
Friday 2 August 2019 FINANCIAL TIMES 5
6 ★
Visions of metal,
stone and wool
With strong talent from across the world, Britain’s largest ever
sculpture festival is under way in Yorkshire. By Rachel Spence
Y
orkshire, with its big skies,
undulating countryside and
ancient trees, produced
Britain’s two most signifi-
cant modern sculptors.
There, the young Barbara Hepworth felt
“the hills were sculptures, the roads
defined the forms.” Henry Moore,
according to his daughter Mary, was
“still seeing the landscapes of his child-
hood” at the end of his life.
The pair’s legacy has been fruitfully
exploited by the region’s cultural guard-
ians. Seven miles from Wakefield, art
lovers can find Yorkshire Sculpture
Park (YSP), a verdant canvas that is
home to works by Moore, Hepworth
and a galaxy of contemporary artists.
Meanwhile The Hepworth Wakefield
museum burnishes its homage to the
eponymous sculptor with the shine of a
stunning contemporary building and a
rich programme. And in Leeds, Henry
Moore’s legacy is conserved at the insti-
tute that bears his name.
Now those three institutions have
joined forces with Leeds Art Gallery to
create Yorkshire Sculpture Interna-
tional (YSI), Britain’s largest ever
sculpture festival.
YSI is about more than just display.
The project has developed an engage-
ment programme to “support artistic
talent development in the region” and
introduce “new audiences to sculpture”.
It has a budget of £1.5m, comprising a
£750,000 grant from Arts Council Eng-
land and funds raised by the institutions
themselves alongside a host of support-
ers (chiefly public bodies, as private
funds are notoriously hard to raise for
culture in the north of England).
“Everything is still too London-
centric,” says Simon Wallis, director of
The Hepworth Wakefield. “One of the
things we’re proving here is we can
devolve cultural power. London
doesn’t have a building of this quality,”
he adds proudly, gesturing at the lumi-
nous spaces of his museum, which
enjoys spectacular views over a fast-
flowing millstream.
Despite its global moniker, YSI is
using its funds for local good. Its engage-
ment programme, which encompasses
workshops, artist visits, teacher sup-
port, public seminars and work place-
ments, is targeting more than 300
schoolchildren, 200 art and design col-
lege students and 1,500 university stu-
dents. YSI has also funded staff and
materials to revive a cancelled sculpture
module at Leeds City College and
Wakefield College.
When it comes to the artists, Wallis’s
contention that “our strength lies in dia-
logue with art with an international
dimension” is borne out through a
line-up of 18 participants from 13 coun-
tries. But there is also an initiative, YSI
Associate Artists, which has paired five
Yorkshire-based sculptors — Rosanne
Damien Hirst’s ‘The Virgin Mother’
(2005-6) at Yorkshire Sculpture Park
FINANCIAL TIMES
ARTS
David Smith’s ‘Untitled (Candida)’ (1965) at Yorkshire Sculpture Park is named after one of his daughters — Alamy
Robertson, Ryoko Akama, Rhian
Cooke, Natalie Finnemore and Jill McK-
night — with the various institutions
and displayed their work at YSP.
The festival’s overall theme was a
“provocation” from Phyllida Barlow
that “sculpture is the most anthropolog-
ical of arts.” It’s a canny choice, for it
anchors the exhibition in the notion of
humanity in a manner so open-ended
that pretty much any work made by
human hands can be included.
Nevertheless, David Smith’s vision, on
show at YSP, feels genuinely relevant.
Born in 1906, the American sculptor was
the first artist to work in welded metal,
material that embodied “movement,
progress” but also “destruction and
brutality”. His sculptures are the love-
children of Wild West machismo (one is
called “The Wagon”) and ethereal
Mother Nature. These twisty, asymmet-
rical, abstract lyrics inscribed Smith into
thespectacularlandscapeofupstateNew
York as determinedly as the cowboy set-
tlersstampedthemselvesontheprairies.
This show, the first solo in a public
institution since Tate Modern’s 2006
retrospective and the largest ever out-
side London, is a fantastic opportunity
to follow Smith’s voyage from Picasso-
inspired juvenile to a maturity which
saw him weld steel plates into a flimsy,
silvery thatch, name it “Candida” (1965)
after one of his daughters, and plant it
outside to drink the shifting East Coast
light. On a grassy crest at YSP,
“Candida” shimmers under Yorkshire’s
rain-troubled skies with equal felicity.
Smith’s devotion to expressing land-
scape through materiality was shared
by Barbara Hepworth, who once said:
“I, the sculptor, am the landscape. I am
the form and I am the hollow, the thrust
and the contour.”
One could argue that Hepworth’s
desire to merge with the curves of the
natural world is a typically feminine
contrast to Smith’s masculine will to
bend metal into his own intransigent
lines. But a more subtle and exhilarating
notion of gender and landscape is elabo-
rated through the art of Rosanne Rob-
ertson. One of the Yorkshire Associate
contingent, Robertson — who hails from
Hebden Bridge — is paired with The
Hepworth Wakefield. Her response to
the project is “Stone Butch”, a sculpture,
film and drawing which takes inspira-
tion from rock formations in West York-
shire’s Calder Valley. Known as Bride-
stones, these craggy, wind-battered
clefts are regarded by Robertson as
“queer bodies . . . fluid as the water that
shapes them and as plural as the grains
of sand that erode them.”
Sharing a gallery with Hepworth’s
works, Robertson’s installation re-
imagines the rocks in plaster so that
they fall open like pale floppy petals,
March of the Manhattan donkeys
In the first of four columns
on the relationship between
art and technology,
Andrew Dickson looks at
augmented reality
T
he billboard across the
street from the High Line in
New York looks conven-
tional enough, if tricky to
interpret: the cartoonish
body of a distended black donkey, plus
cacti, palm trees and what looks like the
back of a wooden picture frame.
It’s when I hold my phone up and peer
through the screen that things get weird.
The donkey now appears to be travers-
ing a khaki-coloured desert with a blob
of pink ice cream in the background.
When I swipe right, orange bubbles
appear, wobbling crazily through the
sky. I swipe again: the donkeys have
bred, and there are now more than 20. I
begin to wonder whether Manhattan’s
ferocious summer heat is getting to me.
This isn’t street art in the sense we’ve
come to expect. What I’m looking at is a
work by the maverick American pho-
tographer Lucas Blalock, and part of the
Whitney Museum’s summer-long bien-
nial. It only comes alive when viewed
through a customised smartphone app,
and is the second piece of augmented
reality (AR) art the museum has dis-
played this year.
Up to now, the art world has mainly
focused on the possibilities of virtual
reality (VR). The consensus has been
ho-hum. Does donning Oculus goggles
and communing with Marina Abram-
ovic’s avatar really compare to the evis-
cerating impact of live performance art?
All this time, AR — sometimes called
mixed reality — has been stealing up on
the rails. Augmented reality enhances
what we already see, generally using a
smartphone or tablet to overlay the
“real” world with extra visual informa-
tion. The question is: can it create
interesting art?
Blalock and I meet a few days later in
his Brooklyn studio, surrounded by
bric-a-brac, prints and sculptures. At
40, he cheerfully admits to being no tech
their central parting coloured in
terracotta. She films herself wedged in
their V-shape, a pair of long legs perched
precariously over a void into which she
urinates — an action invisible to the
viewer who simply witnesses a sudden
mysterious splash as the liquid hits
stone; when she draws them, it is as a
rocky fragments which course through
and around disembodied torsos and
limbs, in a jittery yet sensuous river.
The fusion of intention and expres-
sion of “Stone Butch” stamps Robertson
as an artist who, like Smith and Hep-
worth, works out of an “inner declara-
tion of purpose” while maintaining her
faith in what Smith described as “lan-
guage as image”.
In truth, rare is the successful sculptor
who does not accept that form and
material matter as much as concept, if
not more. Over at the Leeds Art Gallery,
that conviction plays out with downbeat
wunderkind — “I’m still getting my head
around this stuff, to be honest,” he says.
But, captivated by how “real” photogra-
phy was becoming indistinguishable
from computerised imagery, for the
past decade or so he has employed clon-
ing and masking tools to tweak his
images. The results are eerie Rauschen-
bergian composites and droll cubist por-
traits, a mixture of analogue and digital
ingredients.
In 2016, as Blalock noticed the buzz
about Pokémon Go, he felt that “aug-
mented reality seemed to offer such a
wild set of possibilities.” He found him-
self collaborating on an AR photo book:
viewed through a customised app, the
pictures on its pages animate, bursting
with sound effects or transmogrifying
into other images. Time magazine
picked it as one of its best photo books of
the year.
On his large-screen iMac, Blalock
shows me more. First he uploads a tar-
get image, which an AR-building pro-
gramme evaluates to see how easily it
can be “read”, and thus trigger whatever
imagery he wants to place on top. Then
comes the job of layering everything up:
animations, extra pictures, other visual
effects. As he flies around the virtual
world he has created, it’s rather like
floating through a stage set, with two-
and three-dimensional objects (wobbly
cacti, cartoonish clouds) arrayed
around us in “space”.
In front is the billboard “frame” that
Lucas Blalock’s ‘Donkeys Crossing the Desert’ (2019) is viewed through an app
Friday 2 August 2019
Works by Nobuko Tsuchiya are on
show at Leeds Art Gallery
whimsy in the display of Nobuko Tsuch-
iya. So meticulous about her materials
that she brought raw Yorkshire wool
with her from a specialist shop in Tokyo,
Tsuchiya creates objects that balance
the gauzy fluff with discarded industrial
scraps such as slabs of resin, TV aerials,
corrugated plastic and a quivering blob
of pink latex. Only an artist who says
“materials are my friend, they talk to
me” could have spun such captivating,
acrobatic tension out of such gritty,
disparate ingredients.
It’s a long time since Damien Hirst was
at one with the stuff of his creations. He
may be Leeds’s most famous artist, and
therefore a shoo-in for any Yorkshire-
branded project — there are five of his
sculptures included in YSI and two more
in the city centre — but the sight of his
“The Virgin Mother” (2005-06) rearing
out of the valley is a blot on YSP’s land-
scape. Cast in bronze treated to resem-
ble cheap, coloured resin, this enor-
mous naked woman sports a pregnant
belly which peels away to reveal —
shock, horror — a baby in a womb. For
those of us not requiring a biology les-
son, this a piece of vulgar bombast.
Asked to justify Hirst’s inclusion,
Lilley said his works have already
brought in “a sea of people” who
wouldn’t usually visit. But are we not
wary of populism by now? If this is art
for the people, we should run for those
green hills.
To September 29, yorkshire-sculpture.org
Henry Moore’s
‘Three Piece
Reclining Figure
No. 1’ (1961-2)
at Yorkshire
Sculpture Park
Alamy
visitors peer through. The app does the
rest, using GPS to match the position of
each person’s phone to the image on the
wall, and thus create a believable,
apparently 3D, image. Without your
phone, you’d have no idea that the herd
of extra donkeys even existed.
AR is making its presence felt beyond
original art. Last December, Google’s
Arts and Culture division launched
Meet Vermeer, an AR “museum” that
unites all 36 of the Dutch painter’s
known works in one virtual space.
Install the app and the paintings hover
ghostlike before you, as if they’ve mysti-
cally appeared in whichever room
you’re in. So far, the technology is in the
learning-to-walk phase: Meet Vermeer
doesn’t do much more than “hang” 36
paintings on virtual “walls”. But it’s not
hard to see where things might go — for
museums, in education, and more.
I can’t help feeling that AR, innovative
though the technology is, echoes what
artists have always tried to do — offer
fresh ways of seeing. Think of the 14th-
century experiments in perspective by
the Florentine artists Brunelleschi and
Masaccio, or of Holbein’s “The Ambas-
sadors”, with its ghoulish anthropomor-
phic skull hovering to one side of the
picture plane.
When I suggest that perhaps he’s the
new Holbein, Blalock demurs, then
grins. “If you think about it,” he says, “a
painting on a wall is the original aug-
mented reality.”
Friday 2 August 2019
London has become the test case for how democracies will use facial recognition software. The police
hope it can be used to solve and prevent violent crime, but can citizens ever give their informed consent?
O
n the last day of January,
few of the shoppers and
office workers who hur-
ried through Romford
town centre in east
London, scarves pulled tight against the
chill, realised they were guinea pigs in a
police experiment.
The officers sitting inside a parked
van nearby were watching them on
screens, using a new technology that the
police hope will radically reduce crime
in London — live facial recognition.
Cameras stationed near Romford train
station picked up every face walking
past, and matched it to a police watch-
list of wanted criminals. Successful
matches would result in immediate
arrest.
For all the potential to fight crime,
however, the trial quickly stumbled into
the thorny issues that surround the
technology. A bearded man in a blue
baseball cap approached the surveilled
area, with his grey jumper pulled up to
cover his face. He had just been
informed by a bystander that the police
were testing facial recognition in the
area and did not want to participate.
The police demanded that he comply
and scanned his face with a facial recog-
nition tool on a mobile phone. Although
his face did not match that of any known
criminals, a verbal altercation ensued,
which resulted in the man being fined
£90 for telling an officer to “piss off”.
The entire incident was caught on cam-
era by journalists.
“The fact that he’s walked past clearly
masking his face from recognition. It
gives us grounds to stop him,” an officer
says, defending his actions.
Cameras in the capital
The incident — one of four arrests of
people avoiding the cameras in Rom-
ford that day — is one of the reasons that
live facial recognition is causing such
acute concern among observers and
civil rights activists. Given that the tech-
nology is such an overt form of surveil-
lance, many believe that explicit con-
sent of citizens is fundamental — some-
thing the Romford man never gave.
“When people get stopped and
searched in the street, or fined for avoid-
ing cameras, when they don’t consent to
being observed by cameras, that is a
problem,” says Peter Fussey, a criminol-
ogist at the University of Essex who was
present in Romford, as an independent
police-appointed monitor.
“The most important thing in
research ethics, above all else is . . . to
be absolutely sure people consent to
being part of that research . . . Yet what
happened in these trials is that if people
did not engage with it, police would
intervene, stop them and search them.”
London is now at the forefront of a
battle over the use of facial recognition
by the authorities that is escalating
across many democratic countries. As
the technology has become commer-
cially available in recent years, via com-
panies such as Apple and Facebook, the
biggest uptake has been in countries
with authoritarian political systems —
most notably in China, which uses facial
recognition as part of its extensive and
highly intrusive surveillance of Muslim
Uighurs in Xinjiang province.
As police departments in democratic
★ FINANCIAL TIMES
FT BIG READ. TECHNOLOGY
By Madhumita Murgia
Dragnet surveillance
Ed Bridges, countries begin to investigate the tech-
below, has nology, London has become one of the
brought a main test grounds because of the large
lawsuit over the network of CCTV cameras that already
use of facial operate in the city. The Romford opera-
recognition by tion was one of 10 such events around
police. London’s London carried out by the Met police
extensive over a period of three years, including
network of twice at the Notting Hill Carnival.
security Over the course of the trials, police
cameras was planned to gather evidence about the
partly a accuracy and bias of the system and to
response to the assess whether the use of the dragnet
IRA, which technology could be justified by its
bombed potential benefits — preventing or solv-
Manchester in ing major acts of violent crime.
1996, right — PA The use of face recognition by two
forces — London’s Metropolitan Police
and the South Wales force — has
sparked a national debate about where
people will draw the line to protect their
right to privacy. The discussion centres
on whether there is any legal basis to use
live facial-recognition on the general
population, and whether blanket use of
the technology fundamentally under-
mines the rights of citizens. It comes on
the heels of US cities, such as San Fran-
cisco and Oakland, choosing to tempo-
rarily ban facial recognition use by pub-
lic bodies until regulations are in place.
Many of these issues could come to a
head in a legal case in the UK. In May, Ed
Bridges, who lives in Cardiff, the Welsh
capital, brought one of the first legal
challenges to police use of facial recogni-
tion on the grounds that it is a breach of
the Human Rights Act 1998. The out-
come of the case could set a precedent
around the world, from the US to India
‘AI could and Australia, where facial recognition
is being quietly tested.
analyse “We are not aware of anywhere live
thousands of facial recognition is being used for gen-
eral public surveillance, except in
video-feeds China,” says Silkie Carlo, executive
to track and director of Big Brother Watch, a civil
rights campaign organisation that has
alert brought a separate legal challenge
authorities of against the Met Police’s use of the tech-
anomalies . . . nology in London.
“It’s really alarming for Britain to go
to get a real- down this path and set this precedent
time picture not only for other democracies, but cer-
tainly for less liberal states. It’s being
of potential used to track ethnic minorities in China;
criminal the possibilities are chilling.”
London is an obvious test bed for
activity’ visual surveillance technologies. An
London is a test bed for visual CCTV cameras per 1,000 residents
surveillance technologies
London
Number of CCTV cameras in 2017
London Washington DC
Beijing
Houston
420,000
Chicago
0 10 20
Chicago
17,000
Washington DC
30,000
Houston
17,000
‘Parliament is estimated 420,000 CCTV cameras oper-
ate in and around the city, making it the
so choked up second-most monitored city in the
with Brexit world after Beijing, with its 470,000
cameras, according to a report by the
there is no Brookings Institution. (Washington DC,
appetite for in third place, has just 30,000).
Many were put in place in the early
law changes. 1990s in response to IRA bombings in
You are the city, followed by waves of installa-
asking the tions after the September 11 and Lon-
don Underground terrorist attacks, and
police to trial the 2012 Olympics.
it with no For years, the cameras dotted around
the city were “dumb” devices, peep-
leadership or holes that did not know what they were
guidance’ looking at. However, advances in artifi-
cial intelligence, along with the drop-
ping cost of the cameras themselves,
have transformed the business of visual
surveillance. Machine learning algo-
rithms trained to recognise specific peo-
ple, objects or strange behaviours have
supercharged these cameras, allowing
them to effectively “see”.
Over the next five years, the number
of so-called smart cameras in public and
private spaces, from schools to hospi-
tals, is expected to increase exponen-
tially across London, according to a
report by Tony Porter, the UK’s surveil-
lance camera commissioner. They will
create a smart city that will itself
become the eyes and ears of an overbur-
dened law enforcement system.
“AI . . . could analyse thousands of
video-feeds to track and alert authori-
ties of anomalies,” writes Esther Colwill,
Accenture’s global lead on media and
technology, along with a team of col-
leagues in a report on AI surveillance.
“If enabled, cities could crowdsource
commercial and residential security
system data . . . to get a real-time pic-
ture of potential criminal activity.”
Elements of this future are already
being used by public bodies in London.
Transport for London has used AI to
analyse footage from cameras in areas
such as Liverpool Street and Mile End,
to spot unusual behaviours such as lin-
gering pedestrians or suspicious bag-
30 40 50 gage. Local councils, such as Newham,
have trialled smart CCTV that sends
Beijing automatic alerts to officials about
events such as crowd build-up or suspi-
cious objects.
In NHS hospitals, millions of patients
470,000
are exposed to “ever increasing surveil-
lance technology from drones and body-
worn video to automated facial recogni-
tion”, Mr Porter said in the January
report.
Smart CCTV is also being pioneered
Source: Brookings
by the private sector. Convenience
stores such as Budgens, and supermar-
kets including Tesco, Sainsbury’s and
Marks and Spencer all have cameras
that are already, or soon to be, capable of
facial recognition, used for applications
ranging from crime prevention to esti-
mating the age of those buying alcohol
or cigarettes.
Yoti, a British technology start-up, is
rolling out its facial analysis software in
over 25,000 convenience stores in the
next four months to estimate the age of
customers; while another London
start-up, Facewatch, says its software,
which can recognise known criminals,
has been trialled by a number of high-
street retailers in the past two years, and
will soon be included in 550 stores
across London.
Facewatch has been in talks to sign
data-sharing deals with the Metropoli-
tan Police and the City of London Police.
Shaun Moore, chief executive of
US-based facial recognition company
Trueface.aim, which provides its tech-
nology to UK casinos, says London is an
advanced market. “The cameras are
already there and have been there for
decades. They were put in for safety and
security, so there was never a big uproar
about it,” he says.
Like Facewatch and Yoti, Trueface
does not manufacture cameras, but pro-
vides its software to businesses looking
to upgrade existing CCTV. The company
is “putting our solution on existing
infrastructure”, explains Mr Moore.
Public versus private
Increasingly, the lines are blurring
between the use of facial recognition
technology by private firms and the
public sector. Surveillance camera sys-
tems in public places are operated by
the private sector, who give law enforce-
ment free access to their footage.
The police’s own facial recognition
systems are built by commercial organi-
sations, which can raise other issues.
Japanese technology company NEC pro-
vides cameras to the Metropolitan and
South Wales Police.
Hannah Couchman at Liberty, a non-
profit organisation that is supporting
the case against the South Wales Police,
says that any examination of the tech-
nology requires access to training data
and algorithms, but the company sees
that information as a trade secret. “That
overlap between government and pri-
vate companies leads to a lack of trans-
parency that is inevitable,” she says.
NEC declined to comment.
Some experts believe the close collab-
oration between public and private sec-
tors is a growing problem because there
is currently no ethical or regulatory
framework for private use of surveil-
lance technologies.
“All these companies have customers
but they can’t share who their clients
are,” said Stephanie Hare, a campaigner
and researcher. “The private sector is
where we have the greatest ignorance.
We have no data about how companies
are using it, nobody has oversight, it’s a
total free for all.”
One reason for the legal vacuum is
that UK laws governing the use of bio-
metrics, including our facial data, have
not been updated since 2012, and focus
primarily on DNA and fingerprints.
“I think it’s quite urgent that we enact
7
Public spaces London has 420,000
CCTV cameras, some of which the
police want to use for facial recognition
Legal vacuum Experiments with the
technology are taking place despite
the absence of clear regulations
Global example The decisions London
takes about facial recognition will set
an example for other democracies
new legislation to cover facial images,
because the technology is developing
apace and the police are already explor-
ing it,” says Paul Wiles, the UK’s inde-
pendently appointed biometrics com-
missioner. “Biometrics is emerging in
both the public and private sector, and
the important question is who will share
what with whom, and who decides.”
Mr Fussey, from the University of
Essex, agrees, saying the current laws
around facial recognition were “com-
pletely inadequate”.
“Parliament is so choked up with
Brexit there is no appetite for law
changes, but there isn’t a legal basis.
You’re asking police to trial it to keep the
public safe, but with no national leader-
ship or guidance. It is unfair on the pub-
lic and on the police.”
MPs on the House of Commons
science and technology committee last
week urged the Home Office to impose a
moratorium on all facial recognition
trials until regulations can be estab-
lished. The call has been backed by
independent experts including AI
researchers at the Ada Lovelace
Institute; the biometrics commissioner;
and the UK’s data protection authority,
which said the use of facial recognition
in public spaces represented “a real step
change in the way law-abiding people
are monitored as they go about their
daily lives”.
However, the police believe the poten-
tial benefits are significant. “Live facial
recognition technology has the poten-
tial to help our officers locate criminals
who are wanted for serious and violent
offences, such as knife and gun crime,
and the sexual exploitation of children,”
said deputy assistant commissioner
Duncan Ball of the Met Police.
“The public would expect the Met
Police to use all available and propor-
tionate means to catch violent offenders
and it is right that we trial emerging
technology that could help us to do so.”
Before the end of the year, the Welsh
courts will deliver a judgment on the
case brought by Ed Bridges against the
South Wales Police for scanning his own
face twice, including during a protest
against the Cardiff Arms Fair.
The judgment will set a historic legal
precedent for the UK’s use of facial rec-
ognition. In his crowdfunding appeal for
the case, Mr Bridges laid out his view of
the high stakes. “The inevitable result is
that people will change their behaviour
and feel scared to protest or express
themselves freely — in short, we’ll be
less free.”
8 ★
FRIDAY 2 AUGUST 2019
The Fed’s actions are
undermined by its words
Jay Powell needs to improve his communication of monetary policy
Cutting interest rates and yet inadvert-
ently tightening monetary policy is a
trick few central bankers would be
proud of pulling off. This week, the US
Federal Reserve managed it. The Fed-
eral Open Market Committee delivered
a quarter-point cut in rates, its first
reduction since 2008. But the remarks
from Jay Powell, the Fed chair, in the
subsequent press conference seemed
to convince investors that the cut was
an anomaly.
The financial markets duly under-
took a sharp correction, with traders
reducing the number of further cuts
expected in the medium term, equities
falling rapidly and the yield curve
inverting further. It seems unlikely
that Mr Powell intended this reaction,
and his communication skills as Fed
chair are still a work in progress. But
the Fed’s task at the moment is not
easy. It has to contend with a US presi-
dent perennially injecting uncertainty
into the US economy with destructive
trade policy and continually sniping at
the central bank, and with investors
who may have got ahead of themselves
in pricing in a series of cuts.
Whether the economy really needed
an interest rate cut can be debated.
Growth slowed in the second quarter as
net trade and business investment —
both affected by Donald Trump’s trade
war — weakened sharply, while con-
sumption grew rapidly.
However, what the economy cer-
tainly needs is a central bank that
stands ready to react quickly, particu-
larly on the downside, if growth weak-
ens and inflation continues to under-
shoot. Mr Powell, unfortunately, failed
to convey that impression.
The damage was done during the
press conference following the deci-
sion, in which Mr Powell said that
the rate move was a “mid-cycle adjust-
ment to policy” rather than the begin-
ning of a long series of cuts. Forward
Investors and companies
shun public markets
Going private looks appealing to both firms and fund managers
There are many reasons to be a public
company, from the ease of raising cap-
ital, to the ability to compensate found-
ers and employees with share options.
But there is also an increasing number
of reasons not to be. That truth is
reflected in new statistics showing that
between 2000 and 2018, the number of
private equity-backed companies in
the US rose from less than 2,000 to
nearly 8,000. Publicly listed companies
in this period, by contrast, fell from
7,000 to about 4,000, according to the
Milken Institute.
Globally, asset owners have now
placed about 14 per cent of their assets
in private markets (mostly private
equity and real estate), up from virtu-
ally nothing a couple of decades ago,
according to Willis Towers Watson, a
risk management firm. It predicts this
will rise to 20 per cent in 10 years.
Certainly, liquidity in global public
equity and bond markets has declined
since 2008 — which many regulators
cite as their big financial risk concern
at the moment — whereas financing for
private deals has grown. To the extent
that all this erodes the public market
system, which is the main vehicle
through which individuals can benefit
from wealth creation in many modern
societies, it is not only an economic
worry but a political one, too.
Many leaders of public corporations
cite the problems of quarterly capital-
ism as a driver of these trends. In the
past decade or so, pressure from share-
holder “activists” has vastly increased.
This has forced some executives to
move to boost short-term share prices
that might not be in a company’s long-
term interest. There are plenty of other
downsides to being public these days.
In the age of sustainable investing, pop-
ulism and #metoo, CEOs and boards
are under tremendous pressure to
state their “values.” They must show
progress on diversity (which can mean
guidance on interest rates can play a
valuable role, but generally in specific
circumstances such as a commitment
to hold rates down to prevent deflation.
On this occasion, it surprised and dis-
appointed the markets and injected
unwelcome volatility.
Of course, it is not the job of the cen-
tral bank to validate the expectations
of financial markets. Mr Powell did not
intend for his words to have the effect
that they did, given that he also wel-
comed the looser financial conditions
arising from expectations of looser
monetary policy that have supported
the economy this year. If the Fed thinks
investors have it badly wrong and that
their misconceptions will make policy-
setting harder than normal, the way
to correct it is through consistent and
broad-based messaging over a period
of time, not by springing a surprise in a
post-meeting press conference.
The Fed’s job has been made consid-
erably more difficult by the interplay
of monetary policy with Mr Trump’s
trade war. Mr Powell cited uncertainty
over trade as one of the reasons for
cutting — a perfectly reasonable analy-
sis but one with the potential to create
moral hazard by insulating Mr Trump
from the effects of his own actions.
The fact that the president continually
batters away at the Fed in public also
complicates the task. It is all too easy
for any monetary easing by the Fed
to look like a concession to the White
House.
The central bank cannot get into
a game of cat-and-mouse with the
administration over trade policy or
public criticism. It needs to block out
the noise and explain how it has
formed its view of the economy and
monetary policy, and what it will need
to see in terms of incoming data to
change it. This week’s decision was a
reasonable one, but the Fed needs to do
better explaining it.
different things in different countries),
embrace “stakeholder capitalism”, and
of course articulate and execute smart
corporate strategy in the midst of
geopolitical and economic shifts. All
this must be achieved while companies
make sure they are protecting the
share price (it is still a fiduciary duty to
keep it as high as possible). Little won-
der the average public company CEO
has a shelf life of about three years.
Meanwhile, there are many upsides
to being private. Research some years
ago comparing the investment behav-
iour of private and public companies
of similar sizes and types found that
private companies were able to invest
about twice as much in productive
capital expenditure. The key difference
seemed to be the pressure that public
companies are under from investors in
public markets.
One result has been the $1tn that
US companies paid out in share buy-
backs last year. The traditional defence
is that this is a good use of corporate
funds in the absence of value-enhanc-
ing investment opportunities. But it is
also telling that this cash dump was
done when the market was close to
its peak — a strange time to argue that a
company’s stock still has room to rise.
Corporate debt has risen to record
levels too, as many firms have engaged
in a tax arbitrage in which profits go to
offshore accounts, while debt is raised
at record low rates in order to pay out
investors at home. A public company
debt bubble is one of the other financial
risks on the horizon.
All this speaks to perhaps the great-
est economic issue of our time: how to
reform capitalism and restore trust in
free-market, liberal democracies. Pop-
ulists are not the only ones to have lost
faith in public markets. Investors’ con-
fidence has eroded as well. This worry-
ing trend should be a focus for policy-
makers on both sides of the Atlantic.
FINANCIAL TIMES
Letters
Taiwan could be the next ‘flashpoint’
In Gideon Rachman’s column “Hong
Kong is a flashpoint in new cold war”
(July 30), and in your editorial “How
Beijing should handle Hong Kong”
(July 31), no references are made to
Taiwan, which is surprising.
A few years before the British colony
reverted to China, Sir Percy Cradock, a
former ambassador to China and a
one-time foreign policy adviser to
prime minister Margaret Thatcher,
observed that if Beijing breached the
Joint Declaration with Britain on
Hong Kong it would destroy any
prospect of inducing Taiwan to enter
Britain will be a hostage to
fortune — and the EU27
Using game theory, Professor Pasquale
Scaramozzino shows how weak the
UK’s negotiating position will be in a
no-deal Brexit (Letters, July 31). Our
leaders should also read the Institute
for Government’s recent paper
“Preparing Brexit: No Deal” which
makes crystal clear how the process
will be much more difficult after
Brexit, when the UK would be treated
as a “third country”. In this scenario,
any agreement would require the
support of all EU27 leaders, followed by
ratification by the European, national
and some regional parliaments. What
opportunities for hostage-taking!
Richard Morgan
Friston, E Sussex, UK
Certain conditions make
the threat more credible
Professor Pasquale Scaramozzino
(Letters, July 31) maintains that a
threat to quit his university for a lower
salary from a lower-rated institution
would be ignored by his employer as it
wasn’t credible, and compares this to
the UK’s “no deal” option for leaving
the EU.
I wonder whether his hypothetical
threat would be quite so empty if we
also assumed that the alternative
institution offered him much greater
influence on how his department was
run, removed constraints he currently
faced on liaising with academics
outside of Europe, and spared him one
whole tier of bureaucracy.
Charles Mercey
Tellisford, Somerset, UK
I voted Leave, but not for
the demolition of the UK
Like Ali Athar (Letters, July 31) I did
not vote Leave out of hatred of Europe
but because since 1991 I have been
exasperated with the European
Commission’s propensity to interfere in
areas where it has no business to go,
such as decreeing which items should
bear VAT. Thus I was not influenced by
any slogans or promises from Vote
Leave, Nigel Farage or Dominic
Cummings; my view was formed years
ago. But I certainly did not vote for the
demolition of the United Kingdom at
the behest of a party that once included
“unionist” in its title. Nor did I vote for
companies, small and large (in which I
may hold shares), to find their cash
flow and profits ransomed to measures
to combat no-deal Brexit and the
attendant uncertainty.
The dilemma is particularly acute
here in Putney which voted heavily
Remain. Our MP, Justine Greening,
Coming to blows
over the rules
of punctuation
Notebook
by Henry Mance
into a similar “one country, two
systems” arrangement.
It needs remembering that the “one
country, two systems” policy was
originally devised by Beijing to
facilitate the re-incorporation of
Taiwan with the motherland; the 1984
Joint Declaration on Hong Kong was
based on the principles of this policy.
Early next year the people of Taiwan
will hold their presidential election,
and a major issue will be relations with
the People’s Republic, including a
possible declaration of independence
by the island. Beijing has stated
whom I admire and respect, is a
prominent Remainer. She is a doughty
fighter on her constituents’ behalf, for
instance opposing expansion of
Heathrow airport, but her efforts are
stymied by her own government’s
policies. Similarly, I value Wandsworth
council, which also attempts to act in
our interests.
David Cameron’s misguided attempt
to stave off the disintegration of the
Conservative party will likely ensure its
destruction. Where that leaves Ms
Greening and the council, I have no
idea.
Elizabeth Balsom
London SW15, UK
EU law has primacy over
those of member states
Reporting on the proceedings before
the German Constitutional Court about
an element of the European Central
Bank’s quantitative easing programme,
Claire Jones writes: “The legal
ramifications go far beyond this one
case; they also concern whether the
judgments of Germany’s highest court
should take precedence over European
law.” (“German constitutional court to
rule on ECB bond buying”, July 31.)
From a European Union law
perspective, the outcome is clear. As
early as 1964, the European Court
established the primacy of European
law over the laws of the member states,
in the Costa v ENEL case. A declaration
attached in 2007 to the EU treaties
recalls this overriding of national law
by EU law. Without such primacy, how
could a union based on the rule of law
function effectively, from a single
monetary policy to its trade policies,
and all other areas of competences
attributed to it?
René Smits
Professor of the Law of the Economic and
Monetary Union,
University of Amsterdam,
the Netherlands
Fiscal policy may
now be unavoidable
I fully agree with Merryn Somerset
Webb (“ECB purchases of equity would
be a dangerous step”, July 27). Finally,
someone (perhaps it had to be a
woman) has had the courage to say
that the king is naked.
During the last quarter of a century
we have seen a complete turnaround of
the old idea that the task of central
bankers essentially consists of retiring
the punchbowl when the party gets too
hot. Nowadays, the recipe seems to be
the reverse. So far so good.
Nonetheless, to continue on that path
seems to me a rather desperate gesture
that signals the exhaustion of
How do you spend your first day in a
new job? Personally, I spent mine
missing my phone charger.
Jacob Rees-Mogg put me to shame
— marking his arrival as a UK
government minister last week by
issuing a style memo to officials.
Documents were to have a “double
space after full stops” and “no comma
after and”, he ordered.
I don’t really understand Mr Rees-
Mogg’s punctuation rules. I suppose
putting a double space after full stops
is the type of thing you have time for
when you don’t change any nappies.
But what about the rest of us?
I admit, however, that Mr Rees-
Mogg has his finger on the pulse.
Sixteen years since the publication of
Lynne Truss’s guide to its proper use,
Eats, Shoots and Leaves, we remain
fascinated by punctuation.
There is now even a whole book on
a single mark. Semicolon by Cecelia
Watson is billed by its publisher as “a
page-turning, existential romp
through the life and times of the
world’s most polarising punctuation
mark.” I might wait for the inevitable
sequel on the apostrophe — a best-
selling series beckons — but the
highlight of this volume is surely the
1837 duel in Paris between two law
professors over whether a sentence
should have a colon or a semicolon.
Tragically, both the professors
survived. And their spirit is alive
today in the form of grammar
sticklers such as Mr Rees-Mogg.
But this passionate fury over
punctuation masks a dirty secret: it
If you are not satisfied with the FT’s response to your complaint, you can appeal
to the FT Editorial Complaints Commissioner: complaints.commissioner@ft.com
numerous times that if such a
declaration were made the People’s
Liberation Army will invade Taiwan.
If the situation in Hong Kong
worsens, due to foreign meddling — as
China believes — or otherwise, and it
leads to intervention by the PLA, the
“one country, two systems” policy will
be seriously jeopardised, with Sir
Percy’s warning justified, and the
result may not be the cold war posited
by Mr Rachman but a hot war over
Taiwan.
Bryn Rowlands
Malmesbury, Wilts, UK
‘What if this huge waste of money is
all for nothing?’
monetary policy. The Japanese have
been trying all the tools of monetary
policy with scant results. But what if we
accept the theory that we have entered
a “secular stagnation”? In that case,
swimming against the tide could be not
only futile but also dangerous, in the
sense that we would be artificially
delaying painful adjustments that the
system requires in order to function
properly again.
In spite of the display of the full
resources that the art of central
banking can provide, sooner or later
fiscal policy may be the unavoidable
last resort.
Carlos Mora
Montreal, QC, Canada
Former Ambassador of Uruguay to the
Netherlands and Saudi Arabia
No time for solutions
based on fizzy drinks
It’s appealing to think we can save the
climate with fizzy drinks, as suggested
in Nathalie Thomas’s otherwise
excellent article “Hydrogen rises as
clean fossil fuel alternative” (July 30).
But if the carbon emissions from
making hydrogen are captured and re-
used to make fizzy drinks, the storage
and hence climate benefit is shortlived
— not much longer than until that fizzy
drink gets opened.
One could argue that by reusing the
carbon from hydrogen you replace
fossil carbon otherwise used for
fizziness. However, since we need to
achieve net-zero emissions, there is no
space for such re-used fossil carbon.
The climate has no time for short-term
solutions based on fizzy drinks: clean
hydrogen is either made from
renewable energy or the fossil carbon is
stored permanently.
Øyvind Vessia
Brussels, Belgium
doesn’t really matter. Has anyone ever
read the words “a panda eats, shoots
and leaves” and believed they
described a firearms incident? Would
Bob’s Donuts be tastier than Bobs
Donut’s? The pedants are revolting,
and not in the way they think.
If you think less of those who
confuse “its” and “it’s”, you’re
destined to underestimate a large
chunk of the tech industry’s finest
minds.
In my experience, the major reasons
that writing is misinterpreted are: 1)
the reader is reading too fast; 2) the
author has bad handwriting; and 3)
someone has forgotten to print the
last page. Punctuation doesn’t even
make the list. If misplaced
punctuation really did obstruct
meaning, the internet would be
effectively unusable.
Sticklers will point out that there
are legal cases in which punctuation
proved decisive. I’m afraid that’s the
law for you — quite often, it’s the
intellectual equivalent of a coin toss.
There are probably landmark cases
decided on the basis of font size.
Compared with other rogue factors
such as, say, drunk legislators or
hanging chads, I feel confident that
punctuation has had a small role in
setting society’s rules.
There is an aspect of the stickler
mindset that strikes me as deeply odd.
Punctuation is part of your individual
style, your personality. Even if you are
sure that your way is correct, why
would you want it adopted by
everyone? If I were a minister and all
Friday 2 August 2019
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
Post-consumer spark of
joy is perfect for Japan
Leo Lewis is absolutely right to lament
Japan’s wasted nostalgia and gadget
fetish (“Japan’s reverence for the Sony
Walkman is a deadweight”, Tokyo
Notebook, July 31). Its launch 40 years
ago coincided with the publication of
Japan as Number One — Lessons for
America by Harvard professor Ezra
Vogel. Today’s Japan still has a rightful
claim to be “number one”, but it is
mindset, not gadgetry; quality, not
quantity, where Japan now leads the
world. Just look at the empirical
evidence from global rankings on, for
example, income equality, social
mobility and civil sanity. Of course,
there can be no product that
demonstrates Japan’s new-found global
leadership in “quality of life”.
However, may I suggest that
“KonMari” — Marie Kondo’s post-
consumer spark of joy — is the perfect
symbol for the current version of
“Japan as Number One”. Just as
Walkman did 40 years ago, KonMari
has captured the imagination of global
consumers and, slowly but surely, is
changing spending patterns and
lifestyle choices. A tidy wardrobe
sparkling with joy is so much better
than a giant yellow Walkman in the
Ginza.
Jesper Koll
Tokyo, Japan
US tax net applies to its
citizens wherever they live
Aaron Schaal (Letters, July 29) states
that the relation between taxes paid
and benefits received is a fundamental
pillar of taxation. However, this is not
the dominant pillar (or principle) of
taxation, and most taxes are actually
based on the “ability-to-pay” principle.
Clearly, this principle is to be applied
for the taxation of US tech companies
in Europe.
Also, physical presence is not a
necessary condition for taxation, and
there is nothing unique in the fact that
US tech companies can be taxed in
Europe, regardless of their physical
presence there. One is reminded of the
US tax net, which applies to all US
citizens, irrespective of their country of
residence.
Prof Tine Stanovnik
Ljubljana, Slovenia
Have a dig at one leader,
have a dig at them all
In her review of Tannhaeuser (July 29)
Shirley Apthorp chooses to share the
thought that Valery Gergiev has “a
political background dubious enough
to fit right in at Bayreuth”.
To be sure, the eminent — and
familiar to western audiences —
Russian maestro is a close ally of
Vladimir Putin; and these days one
cannot lose with a dig at the Russian
president, however gratuitous. But
may we assume that FT reviews will
also include the information that a
British artist is a Johnsonian Brexiter,
an American a staunch Trumpian?
David C Speedie
Charlottesville, VA, US
Correction
c Taiwanese president Tsai Ing-wen
defeated pro-Beijing candidate Eric Chu
in a 2016 election, not former president
Ma Ying-jeou as incorrectly stated in an
article on August 1.
my civil servants started using
pointless long dashes — yes, these
ones — I would worry that I was living
in The Truman Show. And creating a
team of yes-people.
When I lived in Colombia, I noticed
a habit for writers to put commas
between the subject and verb. (The
equivalent of: “These fields, are the
best in England.”) This usage was
messy and grammatically wrong. I
took pleasure in pointing out
examples to friends. In hindsight,
picking on the Colombian comma was
a coping strategy. On matters of
politics and culture, I was always a
newcomer, my insights painfully
limited. Finally, here was something
that I could challenge without fear of
contradiction.
Our stickling over punctuation is a
displacement activity. Unlike climate
change and the growth of artificial
intelligence, these disagreements
seem narrow and resolvable. Unlike
today’s politics, it is a world where the
educated still enjoy an advantage.
The playwright Harold Pinter once
castigated an actor during rehearsal:
“I wrote dot, dot, dot, and you’re
giving me dot, dot.” Pinter had a valid
point about the length of his dramatic
pauses; the rest of us have no such
excuse. We fret about punctuation
precisely because the steaks are so
small. And if you felt your heart rate
increase as you read that typo, then
you need to find something more
important to worry about.
henry.mance@ft.com
Friday 2 August 2019
FINANCE
Gillian
Tett
A van Steenis
transaction occurred on
Wednesday that should
give investors pause. Two
hours before the US Federal
Reserve announced a 25
basis point interest rate cut, Pegasus
Investments said it had arranged the
sale of Water Tower Place, a 270,000 sq
ft shopping centre in Des Moines, Iowa,
to a “California-based family office”.
Sadly, the buyer’s name and the price
were kept secret, although Pegasus said
it was “the second highest price ever
paid for a shopping centre in Iowa his-
tory ” and — strikingly — was paid
entirely in cash.
However, the motive is easy to guess.
Once, property advisers mainly sold
malls to developers, retail groups or
banks. Now, however, there is rising
Tories have
become the
Brexit party
POLITICS
Philip
Stephens
B
ritain’s Brexiters set a simple
rule to fight the 2016 refer-
endum. Disdain facts, disre-
gard truth and appeal instead
to visceral emotion. Cultural
insecurities and grievances did indeed
trump economics. Invited to strike a
blow against metropolitan elites, to
throw rocks at experts and to close the
door on immigration, a small majority
of those who voted backed Brexit.
Boris Johnson, who led the Leave
campaign, has been setting much the
same course in preparing for a general
election. Every scrap of solid evidence
and independent analysis says a disor-
derly Brexit would have a calamitous
impact on the economy and living
standards. The vast proportion of busi-
nesses report a risk to investment and
jobs. The pound is sinking fast. Michael
Gove publicly scorned experts during
the referendum campaign. Now he has
taken charge of preparations for Britain
to crash out of the EU on October 31.
“Do or die” is how the prime minister
puts it. Instead of outflanking Nigel
Farage’s Brexit party, the Conservatives
have become the Brexit party. Mr John-
son has purged the government of non-
believers. The token handful of One
Trade tensions are a weight around the neck of US manufacturing
ECONOMICS
Megan
Greene
T
he US manufacturing sector
has now contracted for two
consecutive quarters,
according to the Federal
Reserve, raising concerns a
general recession is drawing near. But
those fears remind me of a triathlon I
recently completed. With burning lungs
and a pounding heart, I’d really flagged
during the swimming section. Then I
recovered and finished fine. So does a
limping manufacturing sector really
mean the American expansion will end?
A recession is a bit like the death of a
star — you can only see it clearly after it
happens. We can’t be certain manufac-
turing is leading the US to contraction.
But it could be a portent: industrial pro-
duction was down 1.9 per cent annually
in the first three months of the year and
Family offices are diving into new markets
demand from family offices. The new
owner of Water Tower Place was said to
have experience acquiring and manag-
ing other “trophy quality, grocery-an-
chored shopping centers” in the US.
As the Fed and other central banks
loosen monetary policy, private pools of
capital are searching for ever-more
innovative ways to earn returns. Thus, if
you want to understand the impact of
Wednesday’s rate cut, don’t just watch
bond and equity prices, track what is
happening with assets such as Water
Tower Place as well.
It is not easy to monitor such financial
flows with precision, since the family
office sector — which is estimated to
control almost $6tn in assets — is highly
secretive. However, financiers say that a
shift is under way. A few decades ago,
the sector (like most asset managers)
put most of its money in public bond
and equity markets, with a smaller allo-
cation to real estate.
Then investing in hedge funds
became all the rage. But a survey con-
ducted late last year by UBS and Camp-
den Wealth suggests just 5.7 per cent of
family office assets now sit in hedge
Nation Tories permitted to stay in post
have been obliged to sign an oath of
fealty to a no-deal Brexit. Senior offi-
cials who present ministers with incon-
venient facts risk being accused of
attempted sabotage.
Brexit has rubbed out politics’ famil-
iar left-right dividing line. Mr Johnson
has thrown overboard fiscal conserva-
tism in favour of state largesse for the
Brexit-backing working classes. Contra-
dictions such as those between big tax
cuts and boundless public spending do
not disturb identity politics.
This is not to say that Mr Johnson has
a firm date in mind for polling day.
Assuming that politicians arrive in
office possessed of some grand design is
a common mistake. In Mr Johnson’s
case, the presumption should perhaps
be the opposite. He has never been
guided by principle or impressed by
strategy. The present blizzard of sunny
optimism, spending pledges, and the
brusque ultimatum to the EU27, might
be aimed at creating a new dynamic in
the negotiations with Brussels.
If so, it has badly backfired. European
leaders are unimpressed. Plainly, the EU
had been prepared to offer some conces-
sions on the thorny question of the Irish
border. Until last week there had been
chatter in Brussels about applying pres-
sure on Leo Varadkar, the Irish prime
minister, to accept a face-saving fudge.
Mr Johnson’s maximalist position has
put an end to that.
The prime minister is asking Ger-
many’s Angela Merkel and France’s
Emmanuel Macron to jeopardise the
1.2 per cent annually in the second quar-
ter. Manufacturing production was
down 1.9 per cent and 2.2 per cent,
respectively. The definition of a techni-
cal recession is two quarters of contrac-
tion. And while manufacturing output
grew relative to the previous month in
May and June, it appears to have been
largely driven by auto and auto part pro-
duction, widely forecast to slow later
this year. Automakers such as Ford and
Nissan are cutting jobs and earnings
forecasts.
President Donald Trump’s trade poli-
cies are receiving much of the blame.
Not only have trade tensions contrib-
uted to weaker demand from China for
US goods, they have disrupted supply
chains and inventory management for
US manufacturers. Operating a business
when you don’t know what the rules will
be is like trying to complete a triathlon
with a weight around your neck.
Now, a manufacturing recession need
not necessarily result in an economic
one. Fifty years ago, manufacturing rep-
resented almost 25 per cent of US gross
domestic product. Today it accounts for
only 11 per cent of GDP and 8 per cent of
★ FINANCIAL TIMES
Opinion
funds, sharply down from recent years.
Meanwhile, the allocation to public
markets is also falling, with just 28 per
cent in equities and 16 per cent in bonds.
At the same time, investments in pri-
vate equity and real estate have risen to
account for 22 per cent and 17 per cent
respectively. This trend seems set to
intensify. After all, holding cash is unat-
tractive, as banks such as UBS start
They are re-evaluating
‘traditional approaches
with accelerating interest in
making direct investments’
charging for large deposits, and the rally
in equity and bond prices looks at odds
with many fundamentals. Indeed, pub-
lic markets as a whole now seem danger-
ously hostage to the whims of unfath-
omable politicians and central banks —
as shown by Wednesday’s market
swings.
While the traditional asset classes
“generated average negative returns” in
Good Friday peace agreement by tear-
ing up the guarantee in the draft Brexit
accord to maintain an open Irish Border.
He cannot be surprised that they do not
share his recklessness.
Mr Johnson may think he can yet
postpone an election by persuading the
House of Commons to back a cliff-edge
Brexit. Having rid the cabinet of fifth-
columnists, he may calculate he can face
down the Remainers on the Tory back-
benches. Would even ardent Tory
Europhiles really risk putting Labour
leader Jeremy Corbyn in Number 10?
By promising to pump public money
into Brexit-supporting Labour seats,
Mr Johnson is also bidding for the votes
of a sizeable group of opposition MPs.
Maybe. But, whatever his hopes, most
roads point towards a general election —
Shedding its broad
centre-right traditions,
the party now represents
English nationalism
employment. America has become a
services-based economy, and service
industry data have remained buoyant in
the US and abroad.
Furthermore, the nature of invest-
ment has changed drastically over the
past few decades. In 1998, nearly 50 per
cent of non-residential fixed investment
went into new structures and industrial
equipment to boost manufacturing
We cannot be sure that
industrial production is
leading to a contraction,
but it could be a portent
capacity, while about 30 per cent went
into informational processing equip-
ment and intellectual property. In the
first half of this year the percentages
were reversed, with roughly 30 per cent
going into structures and equipment
and 50 per cent into technology.
Optimists will highlight the potential
for these tech investments to result in
higher productivity growth and poten-
2018, private equity “generated
expected double digit returns”, the
Family Office Exchange pointed out in a
recent report. “Family offices continue
to re-evaluate traditional approaches to
investing [with] accelerating interest in
making direct investments in real estate
and operating businesses.”
This means that family offices are no
longer just investing in private equity
funds (which are already bloated with
cash), but increasingly cutting direct
deals. Moreover, 73 per cent are doing
this in what the exchange calls an
“opportunistic way”, up from 54 per
cent last year. That is, they are grabbing
unorthodox avenues for higher returns,
whenever they materialise.
“It is the hardest investing climate I
have ever seen in my career in public
markets now,” explains a luminary of
one of America’s largest family offices.
“So it’s all about real assets now and
being creative.” Indeed, this particular
investor has recently started buying and
running data centers and converting
multifamily residences to Airbnb-style
rental units.
Is this good for the economy? Classic
a poll that he cannot win without dis-
arming Mr Farage. Hence the decisive
shift to the right. By shedding its trad-
itional identity as a broad coalition
across the centre-right, the Tories
become the Brexit, or more precisely,
the English nationalist party.
The past few days have seen Mr John-
son wrap himself in the UK flag. In
truth, he is uninterested in the smaller
nations of the UK. He has never been
popular in Scotland and will not have
been surprised at the public abuse that
greeted his visit to Edinburgh. Ruth
Davidson, leader of the Scottish Tories,
has told Mr Johnson that a no-deal
Brexit would see the party badly dam-
aged in a general election.
Scotland’s first minister and leader of
the Scottish Nationalist party, Nicola
Sturgeon, could not have wished for a
better enemy in her campaign for inde-
pendence. Mr Johnson seems equally
unmoved by the threat of a no-deal
Brexit to the Conservatives in Wales
or by the boost it could give to the case
for the reunification of Ireland. All the
signs are that the prime minister is
tial growth. However, the impact will be
felt only in the medium term, once
workers have learnt to use the new tech-
nologies to improve their productivity.
In the short term, this shift from tangi-
ble to intangible investment tends to be
bad for workers: factories create more
jobs than the likes of WhatsApp.
Some analysts see parallels with the
manufacturing recession of 2015-16 and
worry this time it will lead to an overall
contraction. In both cases, weakness
was driven by an economic slowdown in
China and a strong US dollar. In 2015-16
as now, the dollar appreciated in part
because of stronger perceived economic
fundamentals in the US than abroad.
The Fed’s decision to pause rate rises
as financial conditions tightened
sharply in late 2015 helped weaken the
dollar and arguably kept the slowdown
in manufacturing from dragging the
overall economy into recession. Today,
however, financial conditions are
already easy. The Fed’s rapid shift in
tone from rate rises to rate cuts since the
end of last year has done little to affect
the currency.
Meanwhile, factory orders and pur-
economic theory suggests yes. Loose
monetary policy is supposed to boost
economic activity partly by forcing capi-
tal to embrace investment risk — and
fund growth. In that sense, it is good
news when family offices back “real”
commercial projects such as data cent-
ers rather than putting all of their
money in safe assets such as govern-
ment bonds.
But there is also a $6tn catch. The
more that elite private pools of capital
find juicy returns outside public mar-
kets, the more this risks fuelling wealth
gaps. After all, most non-elite investors
remain stuck in public markets and
bank deposits, exposed to the vagaries
of low interest rates.
This return gap may be going largely
unnoticed now, because private mar-
kets are so opaque. However, the differ-
ence is likely to grow. Therein lies
another mostly unnoticed consequence
of central bank easing; and another rea-
son why the 20th-century vision of
democratic capitalism based around
public markets is under political attack.
gillian.tett@ft.com
ready to gamble the UK union. Brexit
has become the only thing that matters.
Whether the numbers would add up
in a Commons vote is another question.
No one knows how many disaffected
Labour supporters Mr Johnson can
sweep up eventually into his great patri-
otic crusade; or, for that matter, how
many Tory seats will be lost to the
Liberal Democrats in southern England
as the party’s moderate voters defect.
The irony is that the prime minister’s
most valuable card is Mr Corbyn — an
opposition leader so possessed by the
warped ideology of the far-left and by
his own anti-European prejudices as to
repel large swaths of voters who would
otherwise count themselves part of the
progressive centre-left.
Not so long ago, the complaint most
often heard in Britain was that Brexit
had paralysed parliament. The damage,
though, runs much deeper. The argu-
ment about Europe has shredded the
very fabric of British politics and may
yet destroy the United Kingdom itself.
philip.stephens@ft.com
chasing managers’ indices for the euro-
zone, the UK, Japan and China all show
manufacturing contracting. That puts
pressure on their currencies and makes
American exporters less competitive.
But there are other important differ-
ences from four years ago. In 2015-16,
consumer spending rose at an average
2.8 per cent annual rate. In the most
recent quarter, it grew by a brisk 4.3 per
cent. Then, a collapse in oil prices
crimped investment in energy; today,
oil prices are much higher than in 2015.
China’s slowdown then was driven by a
deliberate campaign to deleverage.
Today, Chinese authorities are trying to
reflate growth that has foundered amid
a trade war with the US.
Given its impact on Chinese demand
and American factories, the trade war is
the key to whether the US slips into
recession. If Mr Trump were to call it off,
it would remove the weight around
manufacturers’ necks — and allow the
US economy to power through swim-
mingly.
The writer is a senior fellow at the Harvard
Kennedy School
9
To succeed,
Libra must
prove itself
in India
Huw
A
s global policymakers try to
divine Facebook’s true
ambitions for its new dig-
ital currency, Libra, one
thing is clear: payments are
the battleground. Even if it does not suc-
ceed, Facebook has upped the stakes for
its competitors just by entering the field.
Technology businesses, payments
companies and banks are each trying to
become the gateway into the platform-
based economy. The prize for the win-
ners can be huge: Chinese groups Alipay
and WeChat Pay control more than 90
per cent of Chinese mobile payments.
Even in the west, moving money can
be costly and inefficient. Those who end
up paying the most are often the vulner-
able, who can least afford to do so.
Improving these processes offers signifi-
cant returns and social benefits. That is
why I argued in my Future of Finance
report for the Bank of England that cata-
lysing payments innovation should be a
priority for the UK. In emerging mar-
kets, the need is greater, and the poten-
tial returns even higher. Some of the
most interesting innovations are hap-
pening outside the west.
The remittance market is ripe for dis-
ruption. In India, the largest market glo-
bally for remittances, the World Bank
calculates that the cost of international
peer-to-peer payments was about 7 per
cent, for a $200 payment. Families send
back home more than $80bn a year —
about one-quarter from the US and
roughly half from the Middle East,
according to a recent Reserve Bank of
India survey.
India is also the largest market glo-
If Facebook is serious
about remittances and
the unbanked, it should
target the subcontinent
bally for the unbanked, after China.
This means that if Facebook is serious
about the remittances market and the
unbanked, then India ought to be its
number one target. India is also Face-
book’s largest international market,
with more than 300m users. The most
successful new payment networks of
the past decade — Alipay, WeChat Pay
and PayPal — each benefited from huge
online platform partners to help build
their networks. That said, it is not at all
clear that Libra can succeed in India.
First, India has largely cracked the
identification problem with its own,
audacious nationwide scheme, Aad-
haar, which dramatically simplifies the
way networks know their customers,
and helps give access to basic bank
accounts. Then there is the memory of
Facebook’s previous attempt to provide
its services to India’s unconnected. Its
“free basics” programme, which prom-
ised to connect millions of Indians to a
free version of the internet curated by
the company, was stymied in 2016 by
local opposition.
Facebook is also entering a fast-mov-
ing, competitive field in which the Chi-
nese, Amazon, Apple and Google are
already well ahead of Facebook. Paytm,
backed by Chinese group Ant Financial,
already has 300m customers in India
and Google Pay has 50m. Meanwhile,
Visa, Mastercard and many others are
trying to make cross border payments
cheaper, more secure and faster.
Perhaps most importantly, India
doesn’t like cryptocurrencies and has
proposed a draft bill to ban trading in
them, which could carry up to a 10-year
jail sentence. While there is a heated
debate as to whether Libra really counts
as a cryptocurrency, the country will
take some persuading, and a lot of time
to counter this wariness. That might be
why local media reports suggest Libra is
not targeting India. An offering using
local currencies and following the Chi-
nese playbook may have been a faster
route to market.
Right now, we don’t know enough to
weigh up whether Libra will be a signifi-
cant presence in the payments sector.
But Facebook’s moon shot has raised the
stakes for everyone involved. A far more
complex payments system that uses
new technology calls for updated regu-
lation. And whether Libra is a success or
not, it is already a catalyst for banks and
payment companies to dramatically up
their own games.
The writer is a senior adviser to the gover-
nor of the Bank of England. He writes in a
personal capacity
10 ★ FINANCIAL TIMES Friday 2 August 2019

Altice Europe/Patrick Drahi: last auction hero

The thin sliver of equity that sits on top of the telecoms company’s large debt pile offers investors potential
for outsized returns. Better than expected quarterly results sent shares soaring yesterday. Hopes of a truce
in the long-running price war in French mobile and broadband lifted stocks across the sector.

Twitter: @FTLex French telecoms share prices Altice France revenue growth
Rebased Annual % change

Barclays/Jes Staley:
the holdout
Maybe European investment banking
is not a disaster zone, after all.
Barclays’ unit pulled off a respectable
second quarter. Profits edged higher,
burnishing the UK bank’s otherwise
lacklustre results. Revenues from
markets activities fell less than at US
rivals. Chief executive Jes Staley’s
commitment to full-scale investment
banking looks less dangerous. He still
has not proved his point.
Mr Staley has fought hard on behalf
of Barclays’ traders and corporate
rainmakers. Activist investor Edward
Bramson wanted deep cuts in a volatile
business. He was seen off. Since then,
weaker rival Deutsche Bank has
announced cuts — clearing the field for
Mr Staley, perhaps. Other European
rivals see investment bankers as mere
support for more profitable businesses.
Global market turbulence ripped
through European banks’ trading
rooms last year. A rebound was
inevitable. Sustaining the recovery
matters more for Barclays. Investment
banking accounts for about half of risk-
weighted assets, compared with a third
at BNP Paribas and Credit Suisse.
But investment banking still fails to
excite. Returns on tangible equity in
the corporate and investment bank
were 9.3 per cent. Even in a weak
quarter, Barclays’ UK banking arm
generated 13.9 per cent returns. The
cards and payments unit managed
18 per cent. In comparison, Société
Générale’s investment bank reported
underlying 10 per cent second-quarter
returns.
Overall, Barclays targets returns
above 10 per cent by 2020. Cost-cutting
has been stepped up. Scepticism
remains. The analysts’ consensus sees
returns sticking below 9 per cent in
2020 and 2021.
Barclays’ shares edged higher
yesterday, but remain a fifth lower
than a year ago, no better than
European stocks. But low double-digit
returns are probably as good as it gets,
at least until interest rates rise again.
Big Wall Street banks generate
returns into the high teens. The gap is
largely explained by lower European
borrowing costs, which have eroded
margins. European bankers complain,
too, about unfair regulatory burdens.
Likerivals,Barclays’ shares trade below
book value — in its case, just 0.6 times.
This looks cheap, relative even to
Barclays’ profitability. UK banks bear
an extra discount because of Brexit
worries. Not even Barclays’ investment
bankers can do much about that.
Siemens:
robot woes
Big was once beautiful at Siemens. No
longer. Boss Joe Kaeser has scrapped
ambitious sales targets in favour of
slimming down the conglomerate.
Yesterday, the German group
reported the first set of earnings under
its new structure. Net profits fell 6 per
cent in the third quarter. Shares fell by
nearly as much on the worse than
expected results. A svelte Siemens
might not prove as resilient as hoped.
As one of Europe’s largest
manufacturing companies, it is
inevitably buffeted by geopolitical
woes. The problem is that its
glamorous digital business — destined
to account for the majority of the
group’s value after next year’s
separation of the gas and power
division — was the main cause of the
earnings miss. The impressive
profitability of the business, a leader in
the automation of industrial
operations, is under pressure. Adjusted
ebita margins declined to 14.8 per cent
from 19.5 per cent a year earlier.
They should recover, the company
says. It reckons margins will be on
target (17-23 per cent) for the full year,
partly as a result of cost-cutting. Some
protection comes from diversification.
Pharma, chemical, food and drinks
customers account for a fifth of the
division’s sales between them. Yet they
are overshadowed by the car and
machine tools industry, which
currently represent 20 and 15 per cent
of the division’s sales. Those sources of
demand will not pick up any time soon.
Mr Kaeser is inspired by the fate of
the dinosaurs. Their inability to adapt
to changing conditions is a guide to the
fate of unreformed conglomerates, he
reckons. That explains the vigour with
which he is restructuring and spinning
off businesses. Investors have not yet
given full credit. The shares are trading
at over a quarter less than its sum-of-
the-parts value, which Morgan Stanley
calculates to be €128. Erosion of that
discount will depend on how well
2014 15 16
FT graphic Sources: Refinitiv; company; Berenberg * Weighted average of Iliad, Bouygues, SFR and Orange
Art prices are almost as volatile as
shares in Altice Europe, whose
billionaire boss Patrick Drahi is
buying art auction house Sotheby’s.
Altice stock soared more than 20 per
cent yesterday after the telecoms
group reported better than expected
results. That suggests the leveraged
roll-up need not auction so many
assets to hit debt repayment targets.
The entrepreneur and collector
should have more free time to take
Sotheby’s private.
Revenues at Altice France, the
group’s main division, bounced back
in the second quarter. The results
also lifted shares in rival French
telecoms groups Orange, Iliad and
Bouygues. Mr Drahi’s comments
stoked hopes a long-running mobiles
Siemens copes with economic pressure.
In most past downturns, the shares
underperformed their industrial peers.
StanChart/Bill Winters:
shirty
Even when earnings and shares are
soaring, it is a brave chief executive
who criticises the owners. Bill Winters’
recent outburst against “immature”
shareholders was put in context by a
modest 3 per cent rise in first-half
profits and in Standard Chartered’s
stock price. This smart, touchy banker
should build some bridges before full-
year numbers. These may be poor.
A slight improvement in half-year
pre-tax profit to $2.4bn reflected
300
Altice Europe
Orange
250
Iliad
Bouygues
200
Q2 18 Q3 18 Q4 18 Q1 19 Q2 19
150
French broadband revenues
Average revenue per user (annual % change)*
100
50
0 -3
17 18 19
price war in France is ending. If so,
Altice offers outsized returns — and
risks — compared with peers.
The timing for a ceasefire looks right.
France now has some of the lowest
mobile and broadband prices in
Europe. Consolidation has long been
mooted. But plutocrat-controlled
companies have been unwilling to
combine. Without mergers, price
increases now look like the only option.
Operators need cash for broadband
investments. Forthcoming 5G
spectrum outlays add to that pressure.
Altice also needs cash for paying
down a huge debt pile accumulated
during its creation. Almost €400m of
this quarter’s €1.4bn ebitda went on
interest. Group net debt stood at
5.7 times ebitda in the second quarter.
buoyant Southeast Asian markets and
cost cutting. The bank, whose pay
policies have attracted shareholder
hostility, faces big structural
challenges. US rates are falling and
Hong Kong is politically volatile. There
are early signs of weakness in retail
banking and capital markets.
Hong Kong’s central bank has cut its
benchmark rate for the first time in a
decade, following the Fed’s lead. We
should assume low rates are now a
permanent feature of banking.
Revenues from Hong Kong were flat.
Income slid in greater China and North
Asia. Pre-tax profits from Europe and
the Americas plunged 85 per cent.
Standard Chartered’s common tier
one equity ratio dropped more than
expected to 13.5 per cent, reflecting
higher risk-weighted assets and $1bn in
Total 5
Residential only
0 Capital One/Amazon:
-5
-10
2 security of the data itself is shared
1 between providers and corporate
0
-1
-2
-4
2015 2016 2017 2018
Mr Drahi’s priority is to get that
closer to 4 times in the next two
years, so he can buy back shares
These had doubled in price this
year even before yesterday’s bump.
French rivals have barely moved over
the same period. Altice’s historical
beta — a measure of volatility — is
two, against the Stoxx 600 index.
That compares with 0.5 and 0.4 for
rivals Orange and Iliad.
Altice is volatile because debts are
high and the free float is limited by
Mr Drahi’s controlling stake. In a
sharp downturn, the shares will lack
support, like levitating figures in a
painting by Marc Chagall, an artist
Mr Drahi admires. For the moment,
expect market auctioneers to mark
them higher.
buybacks. New allegations of
transactions involving Iran-connected
entities mean $204m in regulatory
charges may not be the last.
Currency fluctuations in key markets
reduced the impact cost-cutting had on
earnings. Expenses are expected to rise
in the second half.
All of this points to a bleak full year
for Standard Chartered, unless it can
offset weak core markets through rapid
growth in India and the Gulf.
The bank should rejig Mr Winters’
pay before then. Reducing a £474,000
pension allowance is one option. But it
would be wrong to humble Mr Winters
publicly and hasten his departure. He
already lost his shirt — albeit in a
charity performance. Standard
Chartered’s woes are not of his making.
His strategy is a credible one.
hack sore
The cloud is more physical than it
sounds. Data stored with third-party
providers such as Amazon Web
Services requires powerful servers. The
security of data centres is the
responsibility of these businesses. The
customers. These include US credit
card issuer Capital One, where a huge
data breach has affected more than
100m people.
This distinction means there is no
reason to regard the cloud as more
risky than on-site servers. Broadly,
AWS takes responsibility for the cloud
and customers take responsibility for
what is in it. The Capital One hacker
seems to have used the group’s web app
to access data stored with AWS.
On Wednesday, companies including
Italy’s UniCredit announced they were
trying to work out whether the hacker
had accessed their data as well. The
suspect arrested in connection with the
data theft — once an AWS employee —
does not seem to have done anything
with the information apart from brag
about it online. This is unlikely to stop
a regulatory investigation. Yet no
company has suggested that there is a
problem with the cloud.
Cloud fans say the breach could have
happened just as easily if the data were
held in an on-site server. Guggenheim
says the movement of large quantities
of data might then have been more
noticeable. But this cannot be proved.
Still, customers wrestling with a shift
to the cloud may find a hybrid service
blending on-site equipment with public
cloud services more alluring. Amazon,
the biggest cloud provider with a
business accounting for more than half
its operating income, announced its
own hybrid service late last year.
Customers gain computing power
and reduce costs by moving to the
cloud. By 2020 the market is expected
to be worth $191bn, says analyst
company Forrester — doubling in size
in just five years. Hacks will trigger
calls for improved cyber security. They
will not slow the pace of adoption.
Lex on the web
For notes on today’s breaking
stories go to www.ft.com/lex

CROSSWORD ACROSS
1 Maiden is full of anger, things
2 Ref initially enrages football
team (7)
No. 16,235 Set by BRADMAN being not what they seem to be 3 See 15
(7) 4 Nice lass arranged plants (8)
       5 Plant donkey found by East 5 Cross put above cathedral city in
Anglian river (6) an attractive way (6)
8 Biscuit with rotten egg in – nasty 6 A super tom around? Maybe this
   turn ensues (6,3) isn’t needed then! (9)
9 Old soldier in sixties show 7 Endless expertise shown with
suitable for kids making two newspapers presenting
comeback (5) winter sports feature (3,4)
  11 Work of poet being performed in 10 3D show of yesteryear? (4,1,8)
cinema? (5) 14 Scientist in den with container
12 Scottish island, say – one with a for absorbing nitrogen (9)
   learner in an academic setting 16 Conservative wanting capital
(9) punishment is coming to
 13 Enticers manoeuvring without different view (8)
anybody seeing (2,6) 18 Trendy present maybe making
   
15, 3 Unruly gang re-enter border one passionate (7)
 village (6,5) 20 Hot air from the group believing
17 Servant of broadcaster everything – almost everything
  appearing around 4 to 5 (6) (7)
19 Fellow going to room cut bread 21 Load of lies in paper (6)
(8) 23 Groovy dude (5)
 
22 What a lecturer wants to be
paid? (9)
23 Strips, having returned for rest Solution 16,234
(5) + ( $ ' + 8 1 7 ( 5 3 $ * (
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finally resolved? (5) % (
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27 High wind besetting one lake ( ( ' ( 6 ,
gone finally – this one? (7) 1 ( $ 5 ( $ 6 7 & $ / , 3 +
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Friday 2 August 2019 ★ 11

Wallflowers Europe’s banks fear they will Food fight Hungry investors fuel battle
miss out on Draghi’s QE party — ANALYSIS, PAGE 19 to dominate deliveries — INSIDE TECH, PAGE 12

LSE clinches $27bn Refinitiv deal Tail

Risk
3 Combined data group to have £6bn in revenues 3 Regulators likely to probe pricing power
and capital markets,” said David right ownership of currency trading for more than a decade with multiple
David
ARASH MASSOUDI — LONDON
Schwimmer, an American who took platform FXall.
Thomson management teams . . . Over many, Sheppard
The London Stock Exchange Group has over the LSE after leaving Goldman The combined group will have annual Reuters and many years we were not able to find a
agreed to buy data provider Refinitiv for Sachs last year. revenues of more than £6bn if the LSE Blackstone way we could create value.” He did not
$27bn, sealing a deal that will turn it into By acquiring Refinitiv, which is best can navigate a long antitrust process, comment on any potential LSE bid. Royal Dutch Shell could be crowned “Gassius Clay” in its
a global markets and information pow- known for its Eikon desktop terminals, which is expected to involve regulators will hold The all-share deal will turn Refinitiv’s position as the undisputed heavyweight champion of liq-
erhouse to rival Michael Bloomberg’s the LSE completes a multiyear effort to in probing whether its cumulative data a combined owners, which include US private equity uefied natural gas supplies among the energy majors.
financial data empire. become less dependent on transaction- offerings would give it pricing power group Blackstone and Canada’s Thom- So the group’s surprisingly bad second-quarter results,
The chief executive of the LSE said he based revenues and will pick up data over customers. 37% stake son Reuters, into the LSE’s biggest which sent its shares down more than 5 per cent yesterday,
was confident the business would meet assets that will further reduce its reli- The LSE must also avoid any potential in the LSE shareholders. Together, they will own should not be that surprising, given the LNG market has
the high expectations set by investors, ance on its UK and European business. counter-offers for Refinitiv or its own 37 per cent of shares and control just become punch-drunk since the start of the year.
which have sent shares in the company The LSE said it would pay for the pur- business. Intercontinental Exchange, a under 30 per cent of its voting rights. Prices for spot cargoes of the fuel in Asia, the core mar-
up 24 per cent since last weekend. chase by issuing $14.5bn in new shares US rival that has previously explored Shares in the LSE climbed 6.5 per cent ket for LNG, have fallen to less than half those of a year ago,
“We have a lot of confidence in our and would take on $12.5bn of existing acquiring the LSE, said it had looked at in London trading yesterday. as the market struggles to absorb a glut of new supplies in
ability to generate the targeted growth debt. It will also gain Refinitiv’s majority parts of Refinitiv. Jeff Sprecher, ICE Additional reporting by the US and Australia. Demand has also been relatively
rates of this business . . . and in the stake in the listed and fast-growing bond chief executive, said yesterday: “We’ve Richard Henderson in New York tepid after a mild winter crimped heating needs, while
importance of data in financial markets trading platform Tradeweb and out- had conversations around those assets Tests await LSE page 13 traders have eyed a slowdown in industrial output.
Cargoes in Asia are changing hands for less than $4 per
million British thermal units, according to Reuters, a level
that barely covers the cost of chilling and shipping the
supercooled fuel halfway around the world.
Now it would be easy and fun to beat up on the analysts
Not so awesome covering Shell for missing the glaringly obvious. So we will.
Lego sequel fails to While the results were dis-
appointing across the board,
inspire park visits LNG was the standout miss.
The LNG market
The integrated gas business, is suffering from
where LNG is housed along-
The success of the second Lego movie side Shell’s whizzy gas-to-
oversupply at
failed to lift visitor numbers and liquids operations, saw the moment but
revenues at the theme parks that earnings slump 25 per cent.
showcase the plastic building blocks. The majority of analysts had
that is unlikely
Merlin Entertainments, Europe’s forecast it would broadly to continue
largest theme park operator, said there match 2018’s results.
was “limited momentum” from The Lego Turns out substantially lower gas prices were not that
Movie 2 after its release this year. The good for the bottom line of one of the biggest gas suppliers
group reported a 0.7 per cent decline in and traders. Mark that in your models for next time.
revenues at Legoland parks in the first But does this mean Shell’s punt on the fuel, including the
half of the year in contrast to the 19 per multibillion-dollar deal to buy heavily LNG-focused BG
cent boost after the first movie in 2014. Group four years ago, is already out for the count? Proba-
However, overall revenues at its bly not. The LNG market is a long-term game and, while it
attractions increased 6.5 per cent to is suffering from oversupply, that is unlikely to continue.
£763m due to a 3 per cent growth in Gas demand globally rose almost 5 per cent last year,
visitor numbers to 30.8m. Pre-tax profit according to the International Energy Agency, more than
rose 3.5 per cent to £253m. double the pace of growth for oil demand.
Merlin is set to be taken private this LNG demand, in particular, is expected to remain
year after a deal with its largest strong, with many developing Asian countries lacking
shareholder, the family office of the domestic resources or easy import routes. As pressure
Danish billionaire owners of Lego, along builds to reduce the use of coal for environmental reasons,
with Blackstone and the Canada Pension LNG is likely to be one of the main beneficiaries. Supplies
Plan Investment Board. will keep growing over the next few years but with the
Merlin aims to expand its footprint long-term future of oil demand in doubt, the pivot towards
away from Europe and into the US and LNG by energy majors and trading houses makes sense.
Asia with new Legoland and Peppa Pig The price difference for LNG from various regions is
theme parks as it tries to cushion itself expected to narrow as the market becomes more global,
from any downturn in visitor numbers trading more like oil. But if demand growth keeps up,
in the UK and the continent. It said it had prices should eventually firm.
opened two pilots of Peppa Pig parks in The LNG market might be struggling now but, given the
the US and that discussions for wider longer-term trends, it would be brave to bet it can-
development of Legoland parks in China not come off the ropes.
were “ongoing”. Alice Hancock
david.sheppard@ft.com
Warner Bros/Kobal/Shutterstock

Apollo chief seeks to reassure buyout

firm’s investors over links to Epstein
SUJEET INDAP — NEW YORK dozens of underage girls between 2002 academics have come under renewed
and 2005. He has denied the charges. scrutiny since his arrest last month.
Leon Black, Apollo Global Manage-
In the letter, Mr Black, one of Wall Mr Black’s letter to investors follows
ment’s billionaire co-founder, has
Street’s most powerful financiers, told the release of Apollo’s second-quarter
sought to reassure investors over his
investors that Mr Epstein had “from results on Wednesday and an accompa-
ties to Jeffrey Epstein, saying that the
time to time” provided tax, estate plan- nying earnings call in which a JPMorgan
registered sex offender had never
ning and philanthropic advice to his analyst alluded to a Bloomberg News
invested in any of the firm’s private
Shift to renewables stems family investment partnerships. The report that the California state pension
equity funds.
flow of Powder River coal two men had donated money to chari- fund, Calpers, had expressed concern
The firm “does not have and never has ties each were involved with and about Mr Black’s links to Mr Epstein.
Miners in the Powder River Basin of had, any relationship with Mr Epstein”, Mr Epstein was an original trustee of the Mr Black responded by saying that “it
Montana and Wyoming had hoped to Mr Black said in a letter to Apollo’s Black Family Foundation from 1997. is not affecting our relationship with
survive the shift to renewable energy. investors seen by the Financial Times. Mr Epstein left the board of the founda- investors”. In his letter to investors, he
But with coal firing less than a quarter Apollo’s chairman and chief executive tion in 2007, Mr Black wrote. concluded: “I want to reiterate our deep
of US electricity generation, against acknowledged his “limited relation- He said he was “completely unaware” commitment to operating with integrity
almost 40 per cent five years ago, the ship” with Mr Epstein, who pleaded and “deeply troubled” by the conduct and consistent with the highest ethical
region is in relentless decline. guilty to state prostitution offences in described in the charges Mr Epstein standards . . . and I’m sorry if this
Analysis i PAGE 14 2008, and was accused last month by now faces. Mr Epstein’s links to promi- recent media attention has been a dis-
federal prosecutors of sexually abusing nent business figures, politicians and traction or has caused you any concern.”

Companies / Sectors / People

Companies
Abiomed.......................................................20
Alipay................................................................9
Allianz.............................................................12
Alpha Natural Resources...................14
Altice...............................................................10
Amazon.....................................................9,10
American Electric Power....................14
Anbang..........................................................13
Ant Financial................................................9
Apollo Global Management...............11
Apple.......................................................7,9,19
ArcelorMittal...............................................12
Arch Coal.....................................................14
Audi...................................................................4
Axa...................................................................12
BG Group.................................................11,12
BMW................................................................14
BNP Paribas...............................................10
BP......................................................................12
Barclays.........................................................10
Blackjewel....................................................14
Blackstone....................................................11
BlueMountain.............................................19
Bouygues.....................................................10
Brevan Howard........................................19
Budgens..........................................................7
Canada Pension Plan.............................11
CF Industries.............................................20
CVC Capital Partners............................14
Capital One.................................................10
Caxton Associates..................................19
Chevron.........................................................12
Citadel............................................................19
Cloud Peak Energy................................14
Clovis Oncology......................................20
Coffee Day Enterprises........................13
Continental....................................................4
Contura Energy........................................14
Convex...........................................................12
Credit Suisse..............................................10
Daimler......................................................4,14
Deliveroo.......................................................12
Deutsche Bank....................................10,19
Domino’s Pizza..........................................12
DoorDash......................................................12
Eisenmann.....................................................4
Element Capital........................................19
Enagás...........................................................14
Eni.....................................................................12
ExxonMobil..................................................12
Facebook....................................................7,9
Facewatch......................................................7
Fitbit...............................................................20
Generali.........................................................12
Global Infrastructure Partners........14
Google..............................................................9
GrubHub.......................................................12
ING..............................................................12,19
Iliad..................................................................10
Johnson & Johnson.................................3
Just Eat.........................................................12
Kellogg..........................................................20
Lego.................................................................11
Libra..................................................................9
Marks and Spencer..................................7
Mastercard....................................................9
Merck................................................................3
Merlin Entertainments..........................11
Microsoft......................................................20
NEC....................................................................7
Naspers..........................................................12
Naturgy.........................................................14
Orange...........................................................10
PSA..................................................................14
PayPal .............................................................9
Paytm...............................................................9
Peabody Energy......................................14
Rappi...............................................................12
Royal Dutch Shell...............................11,12
Sainsbury’s....................................................7
Schaeffler.......................................................4
Siemens...................................................10,12
Société Générale.....................................10
SoftBank........................................................12
Sotheby’s......................................................10
Standard Chartered...............................10
Takeaway.com...........................................12
Temasek........................................................12
Tesco................................................................7
Total................................................................12
Trueface..........................................................7
Tudor..............................................................19
UBS..................................................................12
Uber Eats ....................................................12
UniCredit......................................................10
Visa....................................................................9
WeChat............................................................9
WhatsApp......................................................9
XL......................................................................12
Yoti.....................................................................7
Sectors
Automobiles...........................................4,14
Banks...................................................10,12,19
Energy......................................................12,14
Financials................................9,10,12,14,19
Food & Beverage...................................20
Healthcare..................................................20
Industrials.............................................4,9,12
Insurance.................................................12,13
Mining............................................................14
Oil & Gas............................................11,12,14
Personal & Household Goods........20
Pharmaceuticals.........................................3
Technology..................................7,10,12,19
Travel & Leisure.................................12,13
People
Beurden, Ben van....................................12
Black, Leon...................................................11
Bramson, Edward....................................10
Buberl, Thomas........................................12
Catlin, Stephen..........................................12
Drahi, Patrick.............................................10
Griffin, Ken..................................................19
Hamers, Ralph.....................................12,19
Kaeser, Joe..................................................10
Kellow, Glenn.............................................14
Siddhartha, VG..........................................13
Soros, George............................................19
Staley, Jes....................................................10
Tudor Jones, Paul...................................19
Winters, Bill.................................................10
Zipse, Oliver...............................................14

© The Financial Times Limited 2019 Week 31

12 ★ FINANCIAL TIMES Friday 2 August 2019

COMPANIES
INSIDE BUSINESS
Oil & gas
TECHNOLOGY

Shell ‘shocker’ as earnings tumble 26% Richard

Softer prices take toll in
quarter with weakness in
chemicals, gas and refining
ANJLI RAVAL
SENIOR ENERGY CORRESPONDENT
Royal Dutch Shell’s second-quarter
earnings fell 26 per cent after a volatile
period that saw lower energy prices
coincide with weaker performing gas,
The worse than expected results trig-
gered a 4.9 per cent drop in Shell’s
shares, marking its biggest one-day fall
since January 2016.
“Shell had a shocker this quarter,”
said Colin Smith at Panmure Gordon.
“Earnings missed our estimates across
all businesses.”
Shell’s integrated gas division per-
formed the worst, with earnings down
25 per cent. But profits across its busi-
nesses fell, including exploration and
Waters
The chemicals industry was “the sec- The stock the pace of the $25bn buyback pro-
tor that traditionally, and typically, gets gramme which was promised after
suffered a
most hammered if there is a global slow-
down or macroeconomic concerns, or in
this particular case a trade war”, Mr van
drop of
it acquired BG Group for $54bn in
2016. The share repurchases will
amount to nearly $2.8bn in the
Food delivery wars are
Beurden said.
Operational issues compounded
nearly 5%,
the steepest
next three-month period. Shell posted
a second-quarter dividend of 47 cents
just starting as rivals
Shell’s problems. These included under-
performing wells in the Gulf of Mexico,
maintenance in a chemicals facility in
one-day
a share.
In recent years Shell has cut costs,
kept spending in check and sold $30bn
spend to win diners
the Netherlands, and “unplanned
fall since in assets to shrink its debt pile.
downtime” at a Singapore plant. January Gearing was at 28 per cent. This com-

refining and chemicals businesses.
The Anglo-Dutch oil group said its
earnings in the three months to June 30
declined to $3.5bn on a current cost of
supply basis, the measure tracked most
closely by analysts, and adjusted for
exceptional items.
This is down from $4.7bn reported in
the same period a year ago and far below
analysts’ consensus estimates of $4.9bn.
production, refining and chemicals. The results showed refining and
Ben van Beurden, Shell’s chief execu- chemicals margins were exceptionally
tive, said it was able to generate good weak in Asia.
cash flow despite “earnings volatility”. Cash flow from operations rose to
The quarter had “challenging macr- $11bn from $9.5bn in the same quarter
oeconomic conditions”. a year ago. Free cash flow, which
Aside from lower oil and gas prices, enables the group to pay for dividends
petrochemicals took a hit amid mount- and share buybacks, dropped from
ing concerns about global economic $9.5bn to $6.9bn.
weakness. Shell has in recent months picked up
Interview. Thomas Buberl
I
2016 pares with a target of 25 per cent by next
year, using new accounting standards
BP this week reported earnings that
beat estimates following disappoint-
ments from European rivals including
France’s Total and Italy’s Eni, which —
like Shell — saw big drops in second-
quarter profits.
ExxonMobil and Chevron of the US
will also report this week.
f you thought the red-hot food delivery business was
entering its consolidation phase, think again. The
pressures are starting to show on some weaker apps,
prompting the first stirrings of mergers. But this looks
like being just the beginning of a long and very expen-
sive battle for the world’s collective stomach.
European online ordering and delivery services Just Eat
and Takeaway.com confirmed plans to combine their busi-
nesses last weekend. This week, both companies revealed
a dent to profits from rising competition, as rivals turn to
subsidies to win customers.
In the US, GrubHub has been wilting under the same
pressures. Its shares jumped 7 per cent on Monday on
merger hopes, only to drop nearly 15 per cent as it also
warned of a dent to its profits.
These ructions reflect the arrival of a raft of competitors

Axa chief begins to win over doubters on XL deal
Scale of $15bn transaction
alarmed investors but the
stock has staged a recovery
OLIVER RALPH — LONDON
DAVID KEOHANE — PARIS
When French insurer Axa bought Ber-
mudan rival XL group for $15bn in
March last year, chief executive Thomas
Buberl warned his board that the move
would go down badly with investors.
“I said the share price would fall 9 per
cent,” said Mr Buberl, who expected
shareholders to be worried about the
size of the deal and the execution risk.
In the event, the shares fell 10 per cent
on the day and struggled for the rest of
the year as the market digested a trans-
action that few had seen coming.
James Shuck, analyst at Citi, said:
“Investors were surprised at the nature
of the target and the price. Their previ-
ously communicated strategy was
bolt-on M&A, not large [deals].”
“Obviously, when you are faced with a
situation where the market falls 10 per
cent . . . you always ask yourself what
the market has seen that I did not, what
did I get wrong,” said Mr Buberl.
But in 2019, there has been something
of a revival. Axa shares have risen 25 per
cent, beating rival insurers Allianz and
Generali and making up most of the
ground lost since the XL deal was
announced. A wider bump in share
prices has helped.
So has a recovery in the markets that
Bermuda-based XL serves. After years
of falling prices and rising claims, rates
for commercial insurance and reinsur-
ance have started to tick up over the
past 12 months.
“The uncertainty around the deal has
reduced,” Mr Buberl told the Financial
Times. “Many people who were critical
are now convinced that it was the right
deal at the right time.”
The deal was part of a bigger shift in
strategy under Mr Buberl, who wants to
move Axa away from products where its
profits are dependent on movements in
financial markets — such as life insur-
ance in the US — and towards commer-
cial property and casualty underwriting
where earnings are tied to its skills as an
underwriter.
Axa’s first-half results yesterday
showed that the company has made
progress in that direction. The group’s
revenues rose 4 per cent to nearly
€58bn, but at XL revenues were up 9 per
cent, thanks partly to rising prices.
Over four-fifths of Axa’s earnings now
come from the areas it sees as a priority,
such as property and casualty insurance
and health, up from 66 per cent of earn-
ings two years ago. “Axa’s business was
focused on retail and SME [insurance]
as opposed to corporate clients and rein-
surance,” said Benjamin Serra, senior
vice-president at rating agency
Moody’s. “[Following the deal] Axa’s
global commercial lines were considera-
bly increased.”
The flotation of Axa Equitable, the
Thomas Buberl group’s US life insurance business that
wants to move relied on the sort of financial market
Axa away from risk Mr Buberl was keen to escape, was
products where another significant part of the strategic
profits depend shift. The proceeds of the IPO had been
on market earmarked to fund the XL deal.
movements — The IPO got away in May last year —
such as US life albeit at a price below what the com-
insurance — pany had hoped for. And since then, the
French insurer has sold down its stake
and towards
commercial in the US business to 39 per cent.
And Mr Buberl insists XL has been
property
and casualty integrated as he has spent most of his
time on the culture. “Axa and XL are
underwriting
Kristoffer Tripplaar/Alamy; very different animals,” he said. “You
Eric Piermont/AFP/Getty have to spend a lot of time with people,
and emotionally tie them to the new
ensemble.”
Not everybody wanted to be part of it.
Since the deal was announced, a
number of high-profile managers and of Axa. Ben Bolton of Gracechurch Con-
underwriters have quit. sulting, an insurance-focused research
Many of them have gone to Convex, a business, said: “My sense is that they
start-up led by insurance veteran have lost more people this time than
Stephen Catlin, who sold his original after the XL Catlin deal,” but he added:
business to XL in 2015. “I don’t think it has been too damaging. I
People in the industry say they were think the market has got used to people
attracted by the chance to work in a moving after a deal.”
more entrepreneurial company, and Mr Buberl is not worried by the depar-
were wary of working in a group the size tures. “We are talking about 25 people
out of 7,000, that is not a reason to
Axa worry,” he said, adding that Axa gave its
staff a bigger balance sheet to work with
Share price (€)
than they would have access to else-
24 where.
Despite the recovery in the shares this
23 year, the valuation still lags behind that
of Allianz. “It will take a long time to lure
22 back long-only funds who bought into
the story of simplification and digitali-
21 sation at a time when the CEO then went
and did a large, unexpected deal,” said
20 Mr Shuck.
19
But Mr Buberl is not for turning, say-
ing he had refused to stay quiet after
18 doing the deal despite some advisers
Aug 2018 2019 Aug telling him to do so.
“You should stay true to your convic-
Source: Refinitiv
tions and defend them,” he said.
with deep-pocketed backers in what is still a highly frag-
mented market. Taking a leaf out of Uber’s book, for
instance, DoorDash in the US has been on a fundraising
tear, taking in nearly $2bn since early last year. The theory
is brutally simple: out-raise and out-subsidise less well
capitalised rivals to win over diners and become the domi-
nant delivery marketplace. DoorDash has already over-
taken GrubHub to become the leader in the US.
ItcouldbeatUberatitsowngame.Withlittlegrowthinits
ride-hailing business, Uber leans heavily on the Uber Eats
business to show it can be a growth company. But its
underwhelming IPO changed the equation, sending a clear
message that Wall Street’s tolerance for losses is limited.
Some of the biggest private-market investors have been
lining up to pour money into delivery apps. They include
Temasek, the Singapore government vehicle, and Naspers,
the South African investment group, which has led a $1bn
round into Swiggy in India and $500m in iFood in Brazil.
And SoftBank, being SoftBank, seems happy to play all
sides at once: its Vision Fund has backed both Uber and
DoorDash, as well as dropping $1bn on Latin American
delivery company Rappi earlier this year.
Plenty of others still seem to be working out how to play
this sector. They include Amazon, which closed a failed US
delivery service of its own and is now reportedly looking to
enter India, while also await-
ing regulatory approval for a
big investment in Deliveroo.
New apps have
The enthusiasts claim the cash to burn and
food delivery market will
rival ride-hailing in size.
there’s no way to
According to one big inves- predict how long
tor, the margins also look
better — particularly in sub-
this will last
urbs and towns where a
higher proportion of families leads to larger orders.
Margins depend on what customers are willing to pay,
whether that be restaurants (for whom the delivery apps
are a valuable source of additional eaters to help cover
fixed costs) or diners (who pay fees for the convenience).
The impact in the restaurant sector is already being felt.
Domino’s Pizza has seen its same-store sales suffer from
the competition, wiping 12 per cent from its stock price last
month. As Domino’s executives warned, the economics of
the food delivery aggregators are “an open question in the
long term” — but for now, the new apps have cash to burn
and there’s no way to predict how long this will last.
As with all sectors facing the arrival of a new set of digital
aggregators, the threat to restaurants is clear. Many have
rushed to sign up the delivery services, reportedly handing
over a big slice of the money from take-out orders to secure
the extra business. But the apps, amassing eyeballs, could
end up with the upper hand.
Thinking of ordering from your local pizza restaurant?
DoorDash will be in a position to suggest a rival chain, or
put a cut-price offer in front of you. Or in future it could
sidestep restaurants and feed you from a cloud kitchen —
one of the low-cost, purpose-built facilities that will act as
food factories for the burgeoning food delivery sector.
That points to a fierce battle ahead, as restaurants try to
avoid becoming the victims of new digital aggregators, like
music companies, retailers or newspapers before them.
The biggest chains started out by signing exclusive deals
with delivery companies but seem to be rethinking that
strategy. McDonald’s, which signed a deal with UberEats
two years ago, recently agreed to test DoorDash. As with all
digital storefronts, smaller restaurants with less brand rec-
ognition are likely to be the ones to lose out.
Negotiating leverage, for the aggregators, will come from
scale. That guarantees that plenty of cash will be burnt on
subsidised deliveries — and happy eaters will get to enjoy a
lot more subsidised food — before the dust settles.
richard.waters@ft.com

Financials Industrials

ING warns against more central bank stimulus Siemens and ArcelorMittal suffer setbacks
NICHOLAS MEGAW — LONDON
The positive effects of the European
Central Bank’s quantitative easing poli-
cies have “dried up”, according to the
chief executive of one of the eurozone’s
largest retail banks.
In an unusually outspoken call with
analysts yesterday, ING chief executive
Ralph Hamers said further stimulus
would damage consumer confidence
without helping the central bank reach
its inflation target.
“We have to move away from the pol-
icy that is currently anticipated . . . The
discussions and ideas around how to
stimulate inflation, I think, are not going
to help,” he said.
Record-low interest rates have
weighed on retail banks’ profits as they
have been forced to lower borrowing
charges and in some cases pay to store
money at central banks, without a simi-
lar cut in the rates they pay to savers.
The ECB’s benchmark interest rate is
minus 0.4 per cent, and outgoing presi-
dent Mario Draghi said last week that he
was “determined to act” to lift inflation
towards its 2 per cent target, paving the
way for further rate cuts or asset pur-
chases in September.
However, Mr Hamers said such meas-
ures would have little impact because
the recent economic weakness was due
to geopolitical uncertainties such as
Brexit and trade tensions, rather than
any shortage of credit supply.
“I don’t see any credit demand in
Europe unanswered, so there’s no need
for further liquidity to be injected,” he
said. “I actually see that the negative
rate environment is making consumers
so uncertain about their financial envi-
ronment that they’re starting to save
more rather than less.”
The uncertain outlook cast a cloud
over relatively strong second-quarter
results published yesterday. The Dutch
bank beat forecasts for revenues and
profits, attracting twice as many new
customers as in the first three months of
the year despite continuing pressure
over anti-money laundering failures.
Revenues rose 4 per cent year on year
to €4.7bn. The gain, along with lower
provisions for bad loans, helped it avoid
a forecast drop in profits. Net profit rose
0.6 per cent to £1.4bn, about £100m
higher than consensus forecasts.
See Markets
MICHAEL POOLER AND
PHILIP GEORGIADIS — LONDON
The chill blowing through Europe’s
manufacturing sector gathered pace as
two of the continent’s largest industrial
companies revealed a drop in quarterly
earnings and felt the impact of a stall-
ing motor industry.
Siemens, the German engineering
group, missed analysts’ profit expecta-
tions in all its industrial businesses
except mobility, which supplies trains
and technology for transport systems.
Europe’s largest industrial conglom-
erate spoke of “a significantly weaker
environment in [its] key markets”, such
as flagging appetite for factory automa-
tion equipment from the carmaking and
machine building industries.
It came alongside a deeper forecast
contraction in European steel demand
this year than previously outlined from
ArcelorMittal, the largest producer of
the metal, which is often regarded as an
economic bellwether. The Luxem-
bourg-based group blamed its outlook
on a lean automotive market.
The sober results were delivered as a
closely watched survey indicated that
the eurozone’s manufacturing sector
shrank last month at its fastest rate
since December 2012.
There was also the sharpest recorded
reduction in employment in the sector
for more than six years, according to the
purchasing managers’ index compiled
by IHS Markit.
Europe’s economy has been weighed
down by global trade tensions and sof-
tening demand from China, which
together have led to fears of a sustained
global economic slowdown.
Net income at Siemens slipped 6 per
cent to €1.14bn in the three months to
the end of June, largely due to declines
in its digital industries and gas and
power businesses.
Despite the headwinds, the German
group confirmed its full-year outlook as
orders grew 8 per cent to €24.5bn, while
revenue rose 4 per cent to €21.3bn.
ArcelorMittal’s earnings before inter-
est, tax, depreciation and amortisation
were $1.56bn in the second quarter,
slightly better than predictions.
It also swung into a net loss of $477m
due to non-cash writedowns, while sales
fell 3.6 per cent year-on-year to $19.3bn.
See Lex
Friday 2 August 2019 ★ FINANCIAL TIMES 13

COMPANIES

Tests await LSE when deal euphoria subsides

Investors cheer $27bn acquisition of data and trading group Refinitiv but hurdles to success remain to be cleared
CAT RUTTER POOLEY AND
ARASH MASSOUDI — LONDON
David Schwimmer, the chief executive
of the London Stock Exchange Group,
could hardly have written a better
script.
The company’s $27bn acquisition of
Refinitiv, the financial data and trading
group that includes the Eikon terminals
and a stake in bond trading platform
Tradeweb, has enjoyed an almost rap-
turous reception from investors. Since
the Financial Times first revealed the
LSE was closing in on the deal a week
ago, shares in the more than 300 year
old exchange have surged 24 per cent.
“The market has voted with their
cheque books,” said Andy Nybo of Bur-
ton-Taylor International Consulting, a
division of TP ICAP.
After regulators in Brussels ripped up
the LSE’s planned merger with Deut-
sche Börse in 2016, the expectation is
that the Refinitiv transaction will turn a
company still best known for its UK
exchange and ownership of clearing
house LCH into a major force in the glo-
bal distribution of the market data.
“From a shareholder perspective, this
is the right asset for the right owner —
that box is definitely ticked,” said Iacopo
Dalu, at Janus Henderson, which is an
LSE shareholder.
However, the almost euphoric reac-
tion only sharpens the pressure on Mr
Schwimmer, who has only led the LSE
for a year, and the even newer chair-
man, Don Robert, to make the largest
deal in the group’s long history work.
Some of the key challenges are as fol-
lows:
The spectacular swoop on Refinitiv is
not the first time that the LSE has sought
to diversify away from share trading
and initial public offerings. Its biggest
and fastest-growing division is now
information services, which is largely
made up of the index providers Russell
and FTSE International acquired under
former chief executive Xavier Rolet.
While Refinitiv’s Eikon terminals,
which are in ferocious competition with
Bloomberg for a spot on the desks of
traders and portfolio managers, will
bring more recurring revenues, analysts
voiced concern over the lacklustre
growth. Refinitiv’s revenues fell each
year between 2012 and 2016, but have
since stabilised. “The overall growth of
Refinitiv revenues is concerning,” noted
analysts at KBW.
Mr Schwimmer admitted that it had
not “been a priority for Thomson Reu-
ters to be invested in the platform
[Eikon],” but insisted that there has
been a greater focus since a Blackstone-
led consortium acquired Refinitiv in a
$20bn deal last year.
The group will face a challenge both to
lift top line growth at Refinitiv’s core
Eikon data business and lift margins.
Some of this will come from the £350m
of costs savings the LSE has outlined.
If the LSE has a problem in making
Eikon a more enticing proposition than
Bloomberg, a significant stake in
TradeWeb and complete ownership of
currency trading platform FXAll takes
it beyond share trading. Analysts at
JPMorgan say that one of the chief bene-
Feel the bourse
Investors praise LSE’s bold move
Share price (£)
Aug 2018 Jan 2019
Source: Refinitiv (formerly Thomson Reuters)
fits of the deal for the LSE is “diversifica-
tion and expansion of its trading busi-
ness into currency and fixed-income.”
Kyle Voigt, an analyst at KBW, says
that for now the LSE’s management are
also simply receiving credit for swoop-
ing decisively on Refinitiv.
“This is a strategic deal. You’re buying
strategic assets . . . The industry has
been consolidating for a number of
years. There’s a scarcity value to the
assets that are left,” he said. But the exe-
cution has to follow.
The LSE was quick to acknowledge
that “large market infrastructure trans-
actions are highly complex” and can
require “material remedies.”
Yet at first glance, the deal is unlikely
to present as many regulatory obstacles
as the LSE’s proposed merger with Deut-
sche Börse. The demand from Brussels
that the LSE sell its Italian bond trading
platform MTS to satisfy competition
concerns dealt the final blow.
Refinitiv’s business has far fewer
Bloomberg tops the financial data landscape
Revenues, 2018 ($bn)
70
Bloomberg
Refinitiv +
60 RTRS News
S&P Global Market
Intelligence
50 Moody’s Analytics
FactSet
40
ICE P&A + D*
Morningstar
30
Apr Jul Aug 0 5
*Pricing & analytics + desktop
Source: Burton-Taylor
areas in common than the LSE’s did
with Deutsche Börse. Mr Schwimmer
said the businesses were “highly com-
plementary but not overlapping”. Con-
cerns could instead centre on so-called
network effects, and the potential abil-
ity of the exchange to direct trading vol-
umes to its own clearing service.
Refinitiv owns a majority stake in
Tradeweb, the largest over the counter
rates trading platform, while the LSE
owns more than 80 per cent of LCH,
which dominates clearing of interest
rate and currency derivatives.
However, in contrast to the proposed
Deutsche Börse transaction, the combi-
nation of the LSE and Refinitiv is
unlikely to get swept up in any jostling
between governments that have been a
feature of the industry’s aborted cross-
border deals over the last two decades.
“It’s proven very difficult for
exchanges to get deals done with other
exchanges either because of competi-
tion issues or because of protection of
“perceived national assets,” said Niki
Beattie, founder of Market Structure
Partners.
Mr Schwimmer acknowledged the
difficulties in attempting an interna-
tional exchange mega-deal, but said the
Refinitiv deal was a different. “Cross-
border exchange transactions are pretty
challenging. That can be for political or
industry reasons. This is not a cross-bor-
der exchange transaction”.
But in the Deutsche Börse transaction
too the exchanges were confident of
winning round regulators with only
minimal concessions. The LSE’s new
position as the largest global exchanges
group by revenues is also likely to
attract scrutiny from US regulators.
With the obvious exception of the
Deutsche Börse transaction, the LSE
yesterday was quick to tout its record of
successfully integrating acquisitions.
Most of those deals were completed
under Mr Rolet and former chairman
Donald Brydon, however.
Mr Schwimmer is a Goldman Sachs
M&A banker by training, and so under-
stands the perils of acquisitions well.
But he has little experience as chief
executive and none digesting a deal of
this scale. It will take a few years and
good execution for this to be truly value
creating,” said Mike Fox of Royal Lon-
don Asset Management, one of the LSE’s
Tolga Akmen/AFP/Getty
top 25 shareholders.
Refinitiv comes with a load Jeffrey Sprecher, the founder and
of debt chief executive of Intercontinental
Exchange, the owner of the New York
Net debt ($bn)
Stock Exchange, was quick to praise the
LSE’s new management team. “David
Schwimmer and David Warren [the
LSE’s chief financial officer] are two
people who I have known for years and
highly respect and are tremendous at
12.20*
what they do,” he told analysts on a call
as ICE reported results.
Analysts at Exane BNP Paribas put at
1.11 just 20 per cent the chance that ICE will
seek to disrupt the deal with its own bid
LSE Refinitiv* for the LSE. But Mr Sprecher — just like
10 15 20 25 30 billionaire Mike Bloomberg — will be
*Excludes Refinitiv’s 14.5% preferred shares among those looking to make life harder
Source: Burton-Taylor International
for the LSE’s new team.

Obituary ‘Coffee king’ brought café culture to India

VG Siddhartha
Entrepreneur
1959-2019
VG Siddhartha, who died this week,
introduced coffee — and café culture —
to tea-loving India, offering the nation’s
aspirational new middle class a taste of a
global lifestyle along with the cheery
promise “a lot can happen over coffee”.
Starting with one cyber café in Banga-
lore in 1996 and inspired by Starbucks’
Howard Schultz, India’s “coffee king”
built the country’s most ubiquitous,
homegrown retail brand, with more
than 1,700 Café Coffee Day outlets.
In a socially conservative country
with an acute shortage of public space,
CCD cafés became hang-outs for stu-
dents, laptop-toting professionals, amo-
rous couples and even affluent sari-clad
women, reflecting the zeitgeist of an
aspirational young nation emerging
from decades of socialist austerity.
But even while developing one of
India’s biggest consumer brands — and
building midsize tech company Mind-
tree, Siddhartha kept a low profile.
His death and its tragic circumstances
— his body was pulled from a river on
Wednesday — has prompted an out-
pouring of grief both from the elite busi-
ness community and ordinary Indians
for whom Café Coffee Day was the stage
on which the quotidian drama of their
lives played out.
“He built India’s version of Star-
bucks,” said Mohandas Pai, a technology
investor and former director at software
group Infosys, in which Siddhartha was
an early backer. “He was a great part of
the tech ecosystem of Bangalore. This is
very distressing to all of us.”
Deepu Sebin, founder of health-tech
start-up DailyRounds, also paid tribute
to the late businessman. “We pitched
our start-up ideas at CCD,” he wrote in a
letter to Siddhartha shared on Twitter.
“Many of us tasted the first cappucci-
nos from CCD. Some of us had our first
date there . . . You built a brand the
country will always be proud of. And
you will always be an inspiration.”
Born in 1959 and raised on his family’s
400-acre coffee plantation in southern
India’s Chikmagalur district, Sid-
dhartha was educated by tutors at home
and a local boarding school, before grad-
uating in economics from Mangalore’s
St Aloysius College.
In 1985, after two years learning
equity trading as a research analyst in
Mumbai, he set up his own stock bro-
kerage in Bangalore, where he devel-
oped strong ties to the city’s nascent
tech industry and married the daughter
of a prominent Congress party politi-
cian. But he remained loyal to his roots
in south India’s picturesque coffee-
growing region, acquiring his own
expansive coffee estates.
In the early 1990s Siddhartha spon-
sored a delegation of south Indian cof-
fee-growers to travel to New Delhi to
appeal to then finance minister Manmo-
han Singh to relax the stifling state
monopoly over coffee exports. When
the market opened soon afterwards, he
set up his Amalgamated Bean Coffee
Trading Company to ship the crop from
his estates and other growers.
By 1995 ABC was India’s largest
exporter of unroasted beans, and the
entrepreneur decided to set up a coffee
chain. Initially it was just a sideline.
That changed in 2001, when the then
20-store chain started attracting the
attention of big investors, which helped
him fund an aggressive expansion.
But Siddhartha had been under grow-
ing pressure since the 2015 Bombay
Stock Exchange listing of his Coffee Day
Enterprises. Its shares never traded
above the IPO price, frustrating some
investors seeking to cash out.
Since 2017 Siddhartha had also been
locked in a battle with India’s income
tax department and other agencies,
which had seized some of his shares.
In a letter apparently written just
before his death, he sounded despond-
ent, talking about pressure from lend-
ers, the tax department and one of his
private equity investors. It was far from
his past optimism. “I have failed as an
entrepreneur,” he wrote.
But for the millions of Indians who
wove CCD into the fabric of their lives,
nothing could be further from the truth.
Amy Kazmin
14 ★ † FINANCIAL TIMES Friday 2 August 2019

COMPANIES

Automobiles

BMW urges Johnson to steer clear of no-deal Brexit

Chief executive tells PM to
‘listen to the economy’ as
group reports fall in profit
PETER CAMPBELL
MOTOR INDUSTRY CORRESPONDENT
The chief executive of BMW yesterday
urged Boris Johnson to “listen to the
economy” on Brexit in a “personal mes-
sage” to the UK’s new prime minister.
Harald Krüger said Mr Johnson
should seek a “compromise that is
acceptable to everyone”, warning that a
“hard Brexit is not in the interests of the
country” and “both sides will lose” if the
UK leaves without a deal.
His warnings came a day after figures
showed that carmakers had spent
£330m preparing for Brexit, and after
the boss of Vauxhall owner PSA warned
that the company would divert work to
European plants in the event of no deal.
BMW, which owns the Mini and Rolls-
Royce brands, is one of the UK’s largest
automotive investors and exporters,
with four British plants.
Mr Krüger said: “Listen to the econ-
omy and listen to the people. You need
to have a dialogue, I hope you can come
to a compromise that is acceptable to
everyone.”
While the company shut its UK plants
during April to try to avoid disruption
following the original Brexit date, it will
not be able to repeat this later in the
year, in part because the Mini plant
plans to ramp up production of its new
electric model.
“It’s important that companies
remain highly flexible — we are pre-
pared for all scenarios,” Mr Krüger said.
The company is facing challenges
from slowing sales and rising costs due
to the trade war between the US and
China, which pushed BMW’s second-
quarter profits down by a third.
Pre-tax profit fell from €2.9bn to
€2.1bn, although revenues rose 3 per
cent to €25.7bn as car sales climbed 1.5
per cent to 647,000. The operating mar-
gin was 8 per cent, down from 11.5 per
cent a year earlier.
BMW also blamed higher spending on
new models and electric vehicles for the
figures, which were fractionally better
than had been expected.
It is the final set of results under Mr
Krüger before he steps down as chief
executive to be replaced by Oliver Zipse
on August 15.
BMW said car sales fell in the first six
months in Europe and the US, but rose
in both Germany and China.
Carmakers are being hit by slowing
sales in the US, China and Europe, while
also facing increasing cost pressures on
raw materials and the need to invest in
expensive new technologies such as
electric drivetrains. In June BMW prom-
ised to accelerate its electric rollout,
bringing forward its targets of releasing
25 electric or hybrid models from 2025
to 2023, and increasing the number of
pure battery models on offer from 12 to
at least 13.
Half-year profits at the company
halved to €2.8bn, in part because of a
€1.4bn provision in the first quarter to
cover a possible fine from EU authori-
ties over allegations it colluded with
other carmakers to slow the rollout of
clean engine technology.

Mining. Energy transition

US coal region’s decline proves relentless in blow to Trump

Bankruptcies sweep the
Powder River Basin as share
is lost to gas and renewables
GREGORY MEYER — NEW YORK
The Powder River Basin of Wyoming
and Montana was meant to weather the
shift towards cleaner energy.
If some in the energy business were
sceptical about Donald Trump’s prom-
ises of a renaissance for coal, many at
least expected that the basin would
keep finding buyers for its brand of low-
sulphur coal, which can be extracted
cheaply from open-pit mines.
But even the largest coal mining
region in the US is in relentless decline,
with bankruptcies sweeping across the
area as electricity power plants burn far
less than previously anticipated.
Coal has lost market share in the elec-
tricity sector to natural gas and renewa-
ble fuels such as wind and solar. It
accounts for less than a quarter of US
generation, compared with almost 40
per cent five years ago.
“It’s hard to talk about the PRB with-
out at least acknowledging that there’s a
pretty tough story out there,” Paul Lang,
chief operating officer at Arch Coal, one
of the area’s biggest producers, recently
told analysts.
The pace of decline has surprised ana-
lysts and shaken up the business land-
scape. Arch and fellow coal producer
Peabody Energy are seeking approval
for a joint venture that would save them
$120m a year by combining operations
including North Antelope Rochelle and
Black Thunder, the two biggest mines in
the basin.
Assets of rival miners Blackjewel and
Cloud Peak Energy were scheduled to be
auctioned this week after each filed for
bankruptcy protection this year.
Separately, American Electric Power
this month said it would retire a 1,300-
megawatt unit at its power plant in
Rockport, Indiana, to settle a lawsuit
over air pollution.
US power companies have announced
the retirement of more than 546 coal-
fired power units amounting to about
102,000MW of capacity this decade,
according to the Energy Information
Administration.
The EIA expects US power stations to
consume 537.7m short tons of coal this
year, 74m less than it forecast 12 months
ago. The 2.2 per cent fall in US carbon
dioxide emissions the agency expects
from energy use this year is almost
entirely due to lower coal consumption.
Arch Coal sold 34.3m short tons of
Money pit Powder River Basin coal in the
first half of 2019, down 4.2m short tons
from a year earlier, while its cash profit
margin dropped 40 cents to below $1
per ton sold.
It has curtailed operations at its Coal
Creek mine in Wyoming “rather than
pursue uneconomic business”, it said in
a securities filing.
This week Peabody reported sales of
50.3m short tons in the basin in the first
half, down 8.3m short tons from a year
earlier, and a drop in profitability.
Its chief executive, Glenn Kellow,
acknowledged “challenges” for the
region.
“We understand how tough it is in
that county,” he said.
The woes underline the reasoning
behind Peabody’s venture with Arch,
which would bring together mines that
produce more than half the basin’s coal.
US coal’s struggle for survival “For us, this is about day-in, day-out
competition versus natural gas and
Cost range, unsubsidised (% megawatt hour) Wyoming payroll jobs in coal mining industry Powder River Basin coal production (million short tons) renewables,” Mr Kellow said.
Extreme weather has added to diffi-
0 20 40 60 7,500 500 culties. Abnormal spring floods halted
coal trains in the US midwest, an impor-
Onshore wind 7,000 400 tant destination for PRB coal. Cloud
Peak Energy faced a cash crunch after
6,500 300 rainfall that was 50 per cent above aver-
Solar
age caused waste rock to slide into its
6,000 200 coal pit last year, forcing it to divert min-
Coal ing machinery to the clean-up, accord-
5,500 100 ing to a bankruptcy court filing.
Blackjewel’s two Wyoming mines
Nuclear 5,000 0 shut immediately when emergency
2009 11 13 15 17 19 2008 10 12 14 16 18 financing collapsed on the eve of its July
1 bankruptcy petition. Hundreds of
Sources: Lazard; US Bureau of Labor Statistics; MSHA; Hanou Energy Consulting
workers were locked out of the mines
and their pay cheques delayed.
546 Mr Trump has embraced “clean, in the face of falling costs for renewable John Hanou, a consultant, estimates Rules have Blackjewel acquired the two mines
US coal-fired power
beautiful coal”. At a rally in Montana energy and battery storage, said Charlie that the basin will produce 301m short been brought from Contura Energy in 2017. In this
units retired this last November, he said coal miners were Palmer, managing director at Oppor- tons of coal this year, the lowest since in to help the week’s auction, Contura — formed from
decade, amounting “all back to work”. The number of US tune, a consultancy. 1996. His base case calls for 232m short industry by the formerly bankrupt Alpha Natural
to 102,000MW coal mining jobs has risen by about The Powder River Basin, first mined tons of demand for PRB coal by 2030. allowing Resources — has stepped up as a stalk-
of capacity 2,000 to 53,000 since his inauguration, in the 1970s, rose to be the most prolific Another reason the basin’s coal is suf- coal-fired power ing-horse bidder for the mines it once
but remains well below levels earlier in coal region in the US. Output peaked in fering is that it creates less heat than plants to run owned, but it is not clear what price the
300m the decade. Wyoming mine employ- 2008 at 496m short tons. other grades. Prices for its coal have more frequently assets will fetch.
Estimated 2019 coal ment has been contracting. After miners such as Peabody and stagnated at about $12 per short ton. Jim Urquhart/Reuters
“As we look out, we think this is going
output in short tons His administration last month intro- Arch emerged from an earlier wave of Prices for hotter-burning varieties from to be a very difficult environment for
from Powder River duced rules to help the industry by bankruptcies, optimism returned in mines in Appalachia had increased to PRB coal,” said Mr Nelson from
Basin, down from
496m at its peak
allowing coal-fired power plants to run 2017 as they took advantage of a fleeting $50 or more as newer power plants use Moody’s. “Of the 15 or 16 mines that are
more frequently. However, “it seems rise in natural gas prices to increase pro- scrubbers to remove their higher there today, as we move through the
unlikely that it will save many coal duction in the hope of regaining share. amounts of sulphur, a pollutant, said next decade a number of them are going
plants from ultimately shutting down” Volumes have again turned lower. Ben Nelson at Moody’s. to shut down.”

Mining Energy

Rio Tinto announces $1bn special dividend
NEIL HUME — LONDON
Rio Tinto declared a surprise $1bn
special dividend after reporting its best
half-year profits since 2014 on the back
of soaring prices for its key commodity
— iron ore.
However, the company was forced to
take a large writedown on the value of
its massive underground copper project
in Mongolia’s Gobi desert because of
delays and a cost blowout.
The price of the steelmaking ingredi-
ent has jumped by more than 60 per
cent this year, to above $120 a tonne
before retreating, due to a series of
supply disruptions in Australia and
Brazil and record Chinese steel demand.
Rio has cut its iron production twice
this year, most recently due to “opera-
tional challenges” at one of its main
mines in Western Australia. “Rio’s solid
first-half results can be attributed
almost entirely to the supply shock-
driven strength in iron ore prices,” said
Christopher LaFemina, analyst at Jeffer-
ies. “Its average realised price of $85.30
a tonne increased by 35 per cent”.
In the six months to June, earnings
before interest, tax, depreciation and
amortisation — the measure most
closely followed by analysts — rose 11
per cent to $10.3bn in line with market
forecasts on revenue of $20.7bn. Profit
before tax was $5.2bn, down from
$6.7bn in the same period a year ago.
The miner declared a half-year divi-
dend of 151 cents per share, plus a spe-
cial dividend of 61 cents per share,
equivalent to $3.5bn and a record half-
year payout. Rio’s dividends are usually
weighted to the second half of the year,
making the $1bn top up a surprise.
“All in all, we see the outlook for iron
ore remaining positive,” said chief exec-
utive Jean-Sébastien Jacques.
However, many analysts see iron ore,
trading at $114 a tonne yesterday, falling
back to $80 or $90 a tonne. Shares in Rio
rose 27 per cent this year, but fell 2.8 per
cent to £45.68 yesterday.
Investors attack Spain’s plan to cut gas returns
IAN MOUNT — MADRID
DAVID SHEPPARD — LONDON
A consortium of private equity and
pension fund investors have warned
Spain’s competition commission that
its plans to cut the returns made by gas
and electricity network companies will
damage the country’s economy and
deter future investment.
In July, Spain’s National Commission for
Markets and Competition (CNMC)
announced draft plans to cut fixed
returns for gas distribution, transport
and regasification during the 2021-26
regulation period by some 20 per cent
annually. This prompted the five lead-
ing Spanish electricity and gas compa-
nies to shed more than €6bn in market
capitalisation over the following days.
“If implemented, these changes will
have unforeseeable and negative long-
term consequences for the sustainabil-
ity of the Spanish gas sector, would dam-
age the wider Spanish economy [and]
harm the reputation of Spain as an
investment destination,” the group said
in a letter to the CNMC and economy
and energy transition ministers.
The consortium is formed by inves-
tors in affected companies such as
Enagás and Naturgy, including private
equity funds CVC Capital Partners and
Global Infrastructure Partners.
The cuts would be phased in over the
six-year regulatory period, with those in
the final year of 2026 accounting for
€325m — or 31 per cent — of the industry
revenue for gas transport and regasifica-
tion and €453m — or 32 per cent — for
gas distribution, according to Moody’s.
‘If implemented, these
changes will have
unforeseeable and negative
long-term consequences’
In a note calling the cut “credit nega-
tive” for the sector, the rating agency
added: “Despite its potential negative
effect on utility companies, CNMC’s pro-
posal suggests a more transparent and
predictable regulatory framework.”
The proposed cuts in gas distribution
would mainly come in the form of a
phase-out of compensation on older
assets, notes Moody’s, while in gas trans-
portation the decline in revenues would
come from a gradual elimination of an
old revenue compensation mechanism.
The cuts follow repeated complaints
from industrial gas customers in Spain.
The GasIndustrial lobby group esti-
mates industrial customers in Spain pay
20-25 per cent more for gas than Euro-
pean competitors, of that, the regulated
costs in Spain are 45 per cent higher.
According to a CNMC analysis, gas
prices paid by residential customers
rose 31.5 per cent between the 2007-11
and 2012-18 periods, and in the latter
period they paid 24.3 per cent more
than the European average.
The investor group, meanwhile, says
Spain’s revenue per connection point,
€175, is below Europe’s average of €220,
and with cuts would fall to €119, 45 per
cent below the European average.
Friday 2 August 2019 FINANCIAL TIMES 15
16 ★ FINANCIAL TIMES Friday 2 August 2019

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% -0.76% -0.629% -0.816% -0.359% -0.90%

0.97% 1.48% 0.98% 0.46% 0.09% 0.37% 0.110% 0.12%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jul 02 - - Index All World Jul 02 - Aug 01 Index All World Jul 02 - Aug 01 Index All World Jul 02 - Aug 01 Index All World Jul 02 - Aug 01 Index All World Jul 02 - Aug 01 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
12,616.24
3,009.38 16,576.20 21,754.27 2,096.02
16,495.16 7,609.32 21,540.99
7,584.87 12,253.15
2,973.01
2,017.34
Day 0.97% Month 2.32% Year 6.88% Day 0.54% Month 0.69% Year 0.72% Day -0.03% Month 1.12% Year -0.93% Day 0.53% Month -2.14% Year -3.80% Day 0.09% Month 1.25% Year -4.49% Day -0.36% Month -5.32% Year -12.11%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
8,296.56 43,483.23 1,545.15 9,394.40 28,855.14 3,367.80
1,526.84
8,109.09 40,786.60 9,038.20
27,565.70 3,291.75
Day 1.48% Month 3.65% Year 8.17% Day -0.19% Month -6.12% Year -17.95% Day 0.46% Month -0.03% Year -0.07% Day NaN% Month NaN% Year NaN% Day -0.76% Month -3.39% Year -3.53% Day -0.27% Month -0.89% Year -0.84%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
27,126.47 5,618.81 3,015.26 39,839.25
103,604.23 21,905.34
5,557.41 21,566.91
26,786.68 100,605.17 2,908.77 37,018.32
Day 0.98% Month 2.02% Year 6.78% Day 1.76% Month 2.21% Year 30.61% Day 0.70% Month 0.33% Year 0.84% Day 0.79% Month 1.46% Year -1.80% Day -0.81% Month -2.35% Year 1.13% Day -1.23% Month -6.03% Year -1.56%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 42368.49 42057.77 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 23496.38 23322.57 Philippines Manila Comp 8098.16 8045.80 Taiwan Weighted Pr 10731.75 10823.81 Cross-Border DJ Global Titans ($) 338.07 335.62
Australia All Ordinaries 6871.90 6896.70 Czech Republic
PX 1047.08 1056.69 FTSE Italia Mid Cap 37328.52 37151.46 Poland Wig 58863.73 59670.60 Thailand Bangkok SET 1699.75 1711.97 Euro Stoxx 50 (Eur) 3490.03 3466.85
S&P/ASX 200 6788.90 6812.60 Denmark OMXC Copenahgen 20 1014.01 999.45 FTSE MIB 21566.91 21398.19 Portugal PSI 20 5013.62 5010.89 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 1086.88 1081.08
S&P/ASX 200 Res 4958.60 5037.30 Egypt EGX 30 13525.93 13392.47 Japan 2nd Section 6726.13 6724.34 PSI General 3150.62 3142.16 UAE Abu Dhabi General Index 5230.21 5317.89 FTSE 4Good Global ($) 7251.94 7196.75
Austria ATX 2961.20 2984.94 Estonia OMX Tallinn 1272.10 1267.59 Nikkei 225 21540.99 21521.53 Romania BET Index 9120.11 9204.15 UK FT 30 3074.20 3057.40 FTSE All World ($) 346.90 345.62
Belgium BEL 20 3729.97 3701.43 Finland OMX Helsinki General 9242.29 9232.27 S&P Topix 150 1298.65 1294.24 Russia Micex Index 2729.42 2739.50 FTSE 100 7584.87 7586.78 FTSE E300 1526.84 1519.87
BEL Mid 7742.21 7712.68 France CAC 40 5557.41 5518.89 Topix 1567.35 1565.14 RTX 1346.40 1360.04 FTSE 4Good UK 6925.49 6938.71 FTSE Eurotop 100 2970.67 2961.52
Brazil Bovespa 103604.23 101812.13 SBF 120 4394.30 4363.56 Jordan Amman SE 1870.11 1873.46 Saudi-Arabia TADAWUL All Share Index 8666.39 8732.62 FTSE All Share 4132.23 4134.03 FTSE Global 100 ($) 1853.83 1838.33
Canada S&P/TSX 60 985.41 979.73Germany M-DAX 26191.48 25935.28 Kenya NSE 20 2627.81 2630.35 Singapore FTSE Straits Times 3291.75 3300.75 FTSE techMARK 100 5403.52 5366.00 FTSE Gold Min ($) 1757.46 1806.71
S&P/TSX Comp 16495.16 16406.56 TecDAX 2943.71 2915.61 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 344.80 344.01 USA DJ Composite 8951.43 8895.21 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 785.44 805.80 XETRA Dax 12253.15 12189.04 Latvia OMX Riga 1042.61 1038.95 Slovenia SBI TOP 871.52 870.59 DJ Industrial 27126.47 26864.27 FTSE Multinationals ($) 2062.14 2079.44
Chile S&P/CLX IGPA Gen 25243.95 25280.70Greece Athens Gen 895.04 899.93 Lithuania OMX Vilnius 694.43 694.67 South Africa FTSE/JSE All Share 57223.61 56784.61 DJ Transport 10687.94 10701.75 FTSE World ($) 617.43 614.82
China FTSE A200 10182.85 10276.74 FTSE/ASE 20 2212.43 2224.54 Luxembourg LuxX 1300.15 1304.27 FTSE/JSE Res 20 44444.06 45112.71 DJ Utilities 813.86 808.94 FTSEurofirst 100 (Eur) 4207.91 4196.93
FTSE B35 9000.71 8988.96Hong Kong Hang Seng 27565.70 27777.75 Malaysia FTSE Bursa KLCI 1639.07 1634.87 FTSE/JSE Top 40 51331.52 50798.70 Nasdaq 100 7984.99 7848.78 FTSEurofirst 80 (Eur) 4804.60 4770.64
Shanghai A 3046.91 3071.69 HS China Enterprise 10621.57 10675.31 Mexico IPC 40786.60 40863.09 South Korea Kospi 2017.34 2024.55 Nasdaq Cmp 8296.56 8175.42 MSCI ACWI Fr ($) 524.35 528.07
Shanghai B 277.59 281.32 HSCC Red Chip 4314.77 4340.77 Morocco MASI 11616.49 11574.23 Kospi 200 265.73 266.34 NYSE Comp 13139.42 13066.60 MSCI All World ($) 2187.56 2203.40
Shanghai Comp 2908.77 2932.46Hungary Bux 40474.27 40767.60 Netherlands AEX 572.46 572.08 Spain IBEX 35 9038.20 8971.00 S&P 500 3009.36 2980.38 MSCI Europe (Eur) 1603.50 1604.51
Shenzhen A 1634.63 1643.26India BSE Sensex 37018.32 37481.12 AEX All Share 847.89 847.10 Sri Lanka CSE All Share 5897.26 5935.34 Wilshire 5000 30963.86 30684.82 MSCI Pacific ($) 2674.83 2691.44
Shenzhen B 968.23 969.90 Nifty 500 8935.75 9044.95 New Zealand NZX 50 10860.82 10857.75 Sweden OMX Stockholm 30 1612.91 1599.78 Venezuela IBC 25788.69 25207.59 S&P Euro (Eur) 1592.11 1581.26
Colombia COLCAP 1562.13 1568.06Indonesia Jakarta Comp 6381.54 6390.51 Nigeria SE All Share 27718.26 27820.57 OMX Stockholm AS 619.54 615.13 Vietnam VNI 997.39 991.66 S&P Europe 350 (Eur) 1565.20 1558.36
Croatia CROBEX 1911.40 1911.58Ireland ISEQ Overall 6075.25 6111.13 Norway Oslo All Share 959.66 957.18 Switzerland SMI Index 9919.27 9890.90 S&P Global 1200 ($) 2443.15 2425.27
Israel Tel Aviv 125 1513.53 1513.53 Pakistan KSE 100 31839.11 31938.48 Stoxx 50 (Eur) 3191.82 3181.29
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Aug 01 %Chg %Chg Aug 01 %Chg %Chg Aug 01 %Chg %Chg Aug 01 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Apple 37.9 217.51 4.47 Rio Tinto 315.9 4539.50 -158.50 Royal Dutch Shella 602.2 27.08 -1.40 Softbank . 634.8 5693.00 65.00 London Stock Exchange 7058.00 25.5 88.6 Convatec 184.00 23.0 -9.7 Thomas Cook 7.00 53.8 -94.4 Mobile Telecommunications 3432.22 14.2 1.4
Amazon.com 33.1 1888.28 21.50 Royal Dutch Shell 218.5 2466.00 -128.00 Siemens Ag Na O.n. 581.0 95.00 -3.99 Takeda Pharmaceutical 448.6 3904.00 269.00 Just Eat 758.20 21.7 -2.4 Capita 136.75 18.0 -66.6 Renewi 29.40 14.8 -71.5 Beverages 27941.07 8.2 25.3
Microsoft 21.6 140.55 4.28 Royal Dutch Shell 186.6 2472.00 -130.50 Ing Groep N.v. 281.8 9.84 -0.23 Sony 448.5 6123.00 -47.00 Vodafone 151.66 14.9 -35.1 Computacenter 1500.00 11.9 31.3 Indivior 58.04 13.8 -85.6 Health Care Equip.& Services 8661.85 7.7 24.9
Facebook 11.0 197.81 3.58 Bp 169.1 538.70 -7.00 Intesa Sanpaolo 271.3 2.00 0.04 Mitsubishi Ufj Fin,. 404.6 539.10 14.90 Rentokil Initial 447.00 9.4 45.4 Bba Aviation 324.80 9.2 -7.2 Avon Rubber 1400.00 9.4 18.6 General Financial 11975.25 5.5 28.7
Qualcomm 9.9 72.34 -0.82 Glencore 156.9 254.45 -12.00 Total 264.8 46.55 -0.49 Fast Retailing Co., 393.6 65760.00 210.00 Diageo 3526.00 8.8 31.7 Aggreko 842.60 8.7 8.1 Georgia Healthcare 240.00 9.1 -32.4 Industrial Transportation 2388.88 4.6 11.8
Advanced Micro Devices 9.2 31.20 0.75 Anglo American 153.9 1952.00 -87.00 Bayer Ag Na O.n. 241.2 60.25 1.50 Toyota Motor 329.5 7092.00 68.00 Smith & Nephew 1924.50 8.6 52.4 Tbc Bank 1366.00 8.4 -21.9 4imprint 2820.00 8.0 49.6 Tobacco 34838.29 3.5 16.1
Netflix 7.9 325.20 2.21 Hsbc Holdings 148.1 666.00 9.30 Sap Se O.n. 216.9 113.18 1.46 Tdk 284.8 9130.00 660.00 Next 6054.00 6.8 34.5 4imprint 2820.00 8.0 49.6 Rps 144.20 6.7 -47.6 Pharmaceuticals & Biotech. 16985.74 3.5 18.0
Pfizer 7.8 38.15 -0.34 British American Tobacco 137.0 3155.50 203.50 Unilever 216.4 52.78 0.45 Shiseido , 268.6 7706.00 -340.00 Intertek 5962.00 6.1 16.4 Elementis 149.40 7.8 -42.8 Sdl 484.00 6.6 14.7 General Retailers 2193.26 3.4 19.0
Bank Of America 6.8 30.74 0.06 Bhp 133.9 1936.20 -48.00 Bnp Paribas Act.a 214.3 42.84 0.66 Tokyo Electron 242.7 18580.00 -115.00 Micro Focus Int 1780.40 5.5 -28.4 Centamin 127.25 6.9 -20.0 Ncc 187.80 6.3 -17.6 Support Services 8949.85 2.9 23.1
Alphabet 6.8 1228.65 11.97 Vodafone 130.0 151.66 1.58 Societe Generale 199.7 23.50 1.30 Mizuho Fin,. 242.7 159.00 4.60 Relx 1963.50 5.1 14.5 Future 1146.00 6.3 364.1 Palace Capital 291.50 6.2 -11.1 Media 8949.29 2.7 17.2
Astrazeneca 7200.00 5.1 41.0 Mitchells & Butlers 316.50 5.5 12.7 Mears 273.00 5.8 -32.3 Personal Goods 43169.27 2.3 22.7
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Bae Systems 558.00 4.9 -3.0 Energean Oil & Gas 1082.00 5.5 - Medica 137.50 5.8 -31.9 Fixed Line Telecommunication 2275.79 2.2 -
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Corteva 32.77 3.27 11.07 Convatec 184.00 27.90 17.87 Societe Generale 23.50 1.30 5.83 Nomura Holdings, 374.60 31.00 9.02 Fresnillo 605.80 -22.8 -57.8 Intu Properties 44.52 -43.6 -82.3 Low & Bonar 7.50 -21.1 -84.5 Automobiles & Parts 4448.74 -10.9 -
Kellogg 63.81 5.59 9.59 Capita 136.75 20.20 17.33 Deutsche Boerse Na O.n. 133.00 6.70 5.30 Tdk 9130.00 660.00 7.79 Centrica 73.94 -14.3 -47.6 Sanne 540.00 -27.6 -33.7 Luceco 96.40 -18.2 -12.8 Forestry & Paper 19216.55 -6.6 4.5
Vertex Pharmaceuticals 180.61 13.99 8.40 British American Tobacco 3155.50 203.50 6.89 Kinnevik Ab Ser. B 24.00 0.91 3.93 Takeda Pharmaceutical 3904.00 269.00 7.40 Anglo American 1952.00 -10.7 22.4 Hammerson 211.00 -23.4 -61.3 Dignity 548.00 -13.0 -69.9 Oil Equipment & Services 10294.49 -6.1 -1.4
Cf Industries Holdings 53.54 3.98 8.03 London Stock Exchange 7058.00 432.00 6.52 Vopak 46.22 1.62 3.63 Mitsui Eng & Shipbuilding Co., 1008.00 47.00 4.89 Glencore 254.45 -7.7 -35.5 Aston Martin Lagonda Global Holdings 500.60 -20.6 - Pendragon 12.00 -12.4 -57.9 Real Estate Investment Trusts 2734.97 -5.5 4.1
Nektar Therapeutics 30.47 2.01 7.06 Games Workshop 4774.00 238.00 5.25 Philips Kon 43.65 1.17 2.74 Toyota Tsusho 3325.00 155.00 4.89 St. James's Place 971.00 -7.6 -21.5 Cybg 165.90 -17.6 -50.2 Allied Minds 64.30 -10.6 -61.0 Mining 19273.18 -4.1 12.7
Smith (ds) 347.30 -7.4 -14.1 Woodford Patient Capital Trust 46.80 -12.2 -44.5 Halfords 184.60 -10.0 -47.9 Real Estate & Investment Servic 2409.76 -4.0 2.9
Downs Downs Downs Downs
Int Consolidated Airlines S.a. 413.50 -7.0 -38.2 Metro Bank 342.60 -11.0 -90.5 Saga 46.00 -9.2 -62.9 Household Goods 16151.25 -3.0 8.5
Abiomed 205.70 -72.86 -26.16 Amigo Holdings 147.60 -17.40 -10.55 Evonik Industries Na O.n. 24.65 -1.31 -5.05 Toyo Seikan Kaisha, 1705.00 -204.00 -10.69
Lloyds Banking 52.84 -6.9 -21.9 Hunting 502.00 -10.6 -17.2 Wanton 235.00 -7.8 -0.4 General Industrials 6004.29 -2.7 18.7
Concho Resources 74.17 -23.51 -24.07 Intu Properties 44.52 -3.33 -6.96 Royal Dutch Shella 27.08 -1.40 -4.90 Nippon Express Co., 5670.00 -490.00 -7.95
Mondi 1707.00 -6.6 -11.7 Easyjet 960.00 -10.5 -36.0 Speedy Hire 51.60 -7.5 -16.8 Nonlife Insurance 3284.77 -2.4 6.9
Prudential Fin 92.49 -8.82 -8.71 Premier Oil 78.94 -5.10 -6.07 Hugo Boss Ag Na O.n. 54.56 -2.60 -4.55 Yamato Holdings Co., 1973.00 -170.50 -7.95
Taylor Wimpey 161.20 -6.6 -22.5 Charter Court Fin Services 288.00 -8.9 3.8 Costain 154.40 -7.2 -66.6 Index - Technology Hardware & Equipment 1290.35 -1.8 38.0
Diamondback Energy 95.74 -7.69 -7.43 Mondi 1707.00 -96.50 -5.35 Tenaris 10.92 -0.46 -4.08 Tosoh 1426.00 -107.00 -6.98
British Land 502.40 -6.3 -26.6 Newriver Reit 162.80 -8.8 -50.2 Superdry 421.00 -7.2 -78.7 Food & Drug Retailers 3788.46 -1.4 14.9
Huntington Ingalls Industries 211.63 -16.67 -7.30 Ip 65.00 -3.60 -5.25 Siemens Ag Na O.n. 95.00 -3.99 -4.03 Sumitomo Heavy Industries, 3310.00 -225.00 -6.36
Land Securities 791.00 -6.2 -20.5 Onesavings Bank 352.40 -8.8 -13.9 Countrywide 4.96 -6.7 -90.6 Industrial Engineering 12652.17 -1.2 20.4
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Aug 1 Currency Mid Change Mid Change Mid Change Aug 1 Currency Mid Change Mid Change Mid Change Aug 1 Currency Mid Change Mid Change Mid Change Aug 1 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 44.2335 0.4106 48.9157 0.1232 53.7414 0.0822 Indonesia Indonesian Rupiah 14116.0000 99.0000 15610.2191 3.6787 17150.2170 -12.9809 Poland Polish Zloty 3.8924 0.0431 4.3044 0.0187 4.7291 0.0158 ..Three Month 0.8236 0.0064 0.9099 0.0009 - -
Australia Australian Dollar 1.4599 0.0090 1.6144 -0.0010 1.7736 -0.0029 Israel Israeli Shekel 3.5101 0.0132 3.8817 -0.0118 4.2646 -0.0172 Romania Romanian Leu 4.2792 0.0298 4.7322 0.0009 5.1990 -0.0042 ..One Year 0.8249 0.0063 0.9090 0.0009 - -
Bahrain Bahrainin Dinar 0.3770 - 0.4169 -0.0028 0.4580 -0.0036 Japan Japanese Yen 108.1850 -0.3900 119.6366 -1.2508 131.4392 -1.5060 Russia Russian Ruble 63.9775 0.5500 70.7497 0.1295 77.7294 0.0653 United States United States Dollar - - 1.1059 -0.0075 1.2149 -0.0095
Bolivia Bolivian Boliviano 6.9100 - 7.6414 -0.0522 8.3953 -0.0657 ..One Month 108.1848 -0.3905 119.6366 -1.2507 131.4391 -1.5062 Saudi Arabia Saudi Riyal 3.7512 0.0007 4.1483 -0.0276 4.5575 -0.0349 ..One Month - - 1.1056 -0.1186 1.2151 -0.0095
Brazil Brazilian Real 3.8272 0.0645 4.2323 0.0430 4.6498 0.0427 ..Three Month 108.1843 -0.3915 119.6367 -1.2506 131.4389 -1.5066 Singapore Singapore Dollar 1.3728 0.0042 1.5181 -0.0057 1.6678 -0.0079 ..Three Month - - 1.1051 -0.1186 1.2155 -0.0095
Canada Canadian Dollar 1.3208 0.0077 1.4606 -0.0015 1.6047 -0.0032 ..One Year 108.1823 -0.3956 119.6368 -1.2504 131.4391 -1.5075 South Africa South African Rand 14.5363 0.3625 16.0749 0.2939 17.6608 0.3057 ..One Year - - 1.1028 -0.1185 1.2167 -0.0096
Chile Chilean Peso 704.8350 3.8300 779.4433 -1.0555 856.3384 -2.0105 Kenya Kenyan Shilling 103.2500 -0.8500 114.1792 -1.7257 125.4435 -2.0223 South Korea South Korean Won 1188.5500 5.4500 1314.3606 -2.9028 1444.0275 -4.6252 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 6.9020 0.0165 7.6326 -0.0337 8.3856 -0.0454 Kuwait Kuwaiti Dinar 0.3047 0.0003 0.3370 -0.0020 0.3702 -0.0025 Sweden Swedish Krona 9.6657 0.0725 10.6888 0.0078 11.7433 -0.0031 Vietnam Vietnamese Dong 23202.5000 -30.0000 25658.5919 -208.4721 28189.8984 -257.2567
Colombia Colombian Peso 3331.7900 39.2900 3684.4681 18.5988 4047.9553 16.4369 Malaysia Malaysian Ringgit 4.1455 0.0190 4.5843 -0.0101 5.0366 -0.0161 Switzerland Swiss Franc 0.9942 0.0042 1.0995 -0.0028 1.2080 -0.0042 European Union Euro 0.9043 0.0061 - - 1.0987 -0.0011
Costa Rica Costa Rican Colon 569.3900 -0.8950 629.6612 -5.2940 691.7797 -6.5085 Mexico Mexican Peso 19.1840 0.2018 21.2147 0.0798 23.3076 0.0647 Taiwan New Taiwan Dollar 31.1735 0.0780 34.4733 -0.1484 37.8742 -0.2008 ..One Month 0.9040 0.0061 - - 1.0986 -0.0011
Czech Republic Czech Koruna 23.2984 0.2388 25.7645 0.0900 28.3063 0.0709 New Zealand New Zealand Dollar 1.5238 0.0087 1.6851 -0.0019 1.8514 -0.0039 Thailand Thai Baht 30.8675 0.1125 34.1349 -0.1077 37.5024 -0.1557 ..Three Month 0.9035 0.0062 - - 1.0984 -0.0011
Denmark Danish Krone 6.7519 0.0452 7.4665 -0.0006 8.2032 -0.0088 Nigeria Nigerian Naira 362.5000 0.2500 400.8714 -2.4577 440.4189 -3.1398 Tunisia Tunisian Dinar 2.8954 0.0142 3.2018 -0.0060 3.5177 -0.0101 ..One Year 0.9012 0.0062 - - 1.0975 -0.0011
Egypt Egyptian Pound 16.5456 0.0266 18.2970 -0.0953 20.1021 -0.1247 Norway Norwegian Krone 8.8764 0.0941 9.8160 0.0378 10.7844 0.0308 Turkey Turkish Lira 5.5856 0.0238 6.1768 -0.0157 6.7862 -0.0240
Hong Kong Hong Kong Dollar 7.8273 -0.0006 8.6558 -0.0598 9.5097 -0.0752 Pakistan Pakistani Rupee 159.3000 -0.3000 176.1623 -1.5364 193.5413 -1.8817 United Arab Emirates UAE Dirham 3.6732 - 4.0620 -0.0277 4.4627 -0.0349
Hungary Hungarian Forint 295.9443 3.3944 327.2707 1.5457 359.5572 1.3431 Peru Peruvian Nuevo Sol 3.3144 0.0180 3.6652 -0.0050 4.0268 -0.0095 United Kingdom Pound Sterling 0.8231 0.0064 0.9102 0.0009 - -
India Indian Rupee 69.0588 0.2737 76.3688 -0.2164 83.9028 -0.3213 Philippines Philippine Peso 51.2100 0.3225 56.6307 -0.0274 62.2175 -0.0919 ..One Month 0.8233 0.0064 0.9101 0.0009 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Aug 01 Jul 31 Jul 30 Jul 29 Jul 26 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 3074.20 3057.40 3070.10 3112.10 3071.00 0.00 3135.80 2704.70 Leisure Goods 47.02 Health Care Eq & Srv 15.99 Nonlife Insurance 9.48 FTSE 100 Price Change FTSE 100 Price Change
Aug 01 chge% Index Jul 31 Jul 30 ago yield% Cover ratio adj Return FT 30 Div Yield 1.88 1.90 1.88 1.86 1.90 0.00 3.93 2.74 Industrial Metals & 35.97 Consumer Goods 15.54 Travel & Leisure 8.98 3I Group PLC 1126.5 14.00 Land Securities Group PLC 791.00 -5.20
FTSE 100 (100) 7584.87 -0.03 6486.74 7586.78 7646.77 7575.93 4.26 1.48 15.84 186.27 6882.23 P/E Ratio net 23.72 23.52 23.70 24.01 23.53 0.00 19.44 14.26 Software & Comp Serv 26.39 Aerospace & Defense 15.20 Real Est Invest & Tr 8.41 Admiral Group PLC 2170 3.00 Legal & General Group PLC 259.50 -2.30
FTSE 250 (250) 19634.31 -0.16 16791.66 19666.52 19774.82 20548.97 3.15 1.43 22.19 355.74 15105.41 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Technology 26.22 Health Care 15.11 Oil & Gas Producers 8.39 Anglo American PLC 1952 -87.00 Lloyds Banking Group PLC 52.84 -0.49
FTSE 250 ex Inv Co (192) 20548.15 -0.18 17573.20 20585.43 20715.26 21939.70 3.36 1.41 21.12 395.26 16157.67 FT 30 hourly changes Electronic & Elec Eq 25.95 Basic Materials 15.06 Oil & Gas 8.32 Antofagasta PLC 902.40 -36.80 London Stock Exchange Group PLC 7058 432.00
FTSE 350 (350) 4192.77 -0.05 3585.74 4194.75 4226.32 4219.45 4.08 1.48 16.60 98.69 7608.27 8 9 10 11 12 13 14 15 16 High Low Tech Hardware & Eq 23.06 Pharmace & Biotech 15.01 Industrial Transport 7.47 Ashtead Group PLC 2288 15.00 Marks And Spencer Group PLC 207.90 -
FTSE 350 ex Investment Trusts (291) 4143.32 -0.05 3543.45 4145.37 4177.37 4177.11 4.15 1.47 16.42 99.20 3877.51 3057.4 3081.3 3075.3 3092 3072.4 3074.7 3071.2 3068.2 3070.1 3089.3 3052.3 Industrial Eng 21.42 Food Producers 14.71 FTSE SmallCap Index 7.45 Associated British Foods PLC 2466 46.00 Melrose Industries PLC 191.10 4.15
FTSE 350 Higher Yield (109) 3659.26 -0.76 3129.47 3687.45 3720.36 3831.83 5.83 1.33 12.89 114.97 7149.04 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Construct & Material 21.14 General Retailers 14.71 Oil Equipment & Serv 4.49 Astrazeneca PLC 7200 139.00 Micro Focus International PLC 1780.4 41.60
FTSE 350 Lower Yield (241) 4383.61 0.71 3748.95 4352.69 4378.99 4218.06 2.26 1.87 23.68 66.12 5046.58 Financial Services 20.87 FTSE 250 Index 13.46 Banks 4.16 Auto Trader Group PLC 538.00 -3.80 Mondi PLC 1707 -96.50
FTSE SmallCap (281) 5546.89 0.06 4743.81 5543.30 5567.79 5853.08 3.71 0.77 35.26 111.56 8487.25 Personal Goods 20.23 Equity Invest Instr 13.44 Real Est Invest & Se 3.74
FTSE SmallCap ex Inv Co (156) 4404.50 0.30 3766.82 4391.48 4423.14 4994.81 4.23 1.39 16.99 89.25 7085.91 FX: EFFECTIVE INDICES Support Services 19.97 Consumer Services 13.35 Gas Water & Multi 2.51
Aveva Group PLC 4014 22.00 Morrison (Wm) Supermarkets PLC 192.35 -2.30
Aviva PLC 409.60 3.50 National Grid PLC 856.00 11.70
FTSE All-Share (631) 4132.23 -0.04 3533.97 4134.03 4164.69 4165.55 4.07 1.45 16.91 96.76 7577.43 Industrials 19.40 NON FINANCIALS Index 12.96 Utilities 1.80
Jul 31 Jul 30 Mnth Ago Aug 01 Jul 31 Mnth Ago Bae Systems PLC 558.00 9.40 Next PLC 6054 -10.00
FTSE All-Share ex Inv Co (447) 4054.93 -0.04 3467.86 4056.67 4087.95 4097.71 4.15 1.47 16.43 96.78 3855.36 Beverages 18.60 Household Goods & Ho 12.71 Chemicals -0.13 Barclays PLC 155.88 1.80 Nmc Health PLC 2463 -11.00
FTSE All-Share ex Multinationals (563) 1155.58 0.07 819.10 1154.74 1164.19 1238.35 3.92 1.34 19.04 27.46 2228.09 Australia - - - Sweden - - - Media 17.25 FTSE All{HY-}Share Index 12.22 Electricity -0.76 Barratt Developments PLC 646.00 0.80 Ocado Group PLC 1250 4.50
FTSE Fledgling (102) 9549.84 0.10 8167.22 9540.13 9557.95 11208.69 5.23 -0.35 -55.27 174.79 18975.22 Canada - - - Switzerland - - - Mining 16.55 FTSE 100 Index 12.20 Mobile Telecomms -2.35 Berkeley Group Holdings (The) PLC 3915 37.00 Pearson PLC 849.40 -21.80
FTSE Fledgling ex Inv Co (46) 11311.51 0.10 9673.83 11300.43 11334.44 16496.24 13.76 -0.36 -20.26 229.29 22058.27 Denmark - - - UK 75.10 74.53 76.97 Food & Drug Retailer 16.48 Tobacco 12.05 Telecommunications -7.27 Bhp Group PLC 1936.2 -48.00 Persimmon PLC 2014 5.00
FTSE All-Small (383) 3852.16 0.07 3294.45 3849.59 3866.03 4086.28 3.79 0.68 38.95 77.06 7563.17 Japan - - - USA - - - Life Insurance 16.47 Forestry & Paper 11.72 Fixed Line Telecomms -16.95 BP PLC 538.70 -7.00 Phoenix Group Holdings PLC 695.80 0.20
FTSE All-Small ex Inv Co (202) 3289.99 0.29 2813.66 3280.46 3303.69 3766.46 4.52 1.23 18.00 66.62 6705.09 New Zealand - - - Euro - - - Financials 10.15 Automobiles & Parts -26.79 British American Tobacco PLC 3155.5 203.50 Prudential PLC 1705 7.00
FTSE AIM All-Share (770) 931.77 0.03 796.87 931.46 932.36 1087.16 1.64 1.41 43.32 7.86 1054.56 Norway - - -
British Land Company PLC 502.40 -5.60 Reckitt Benckiser Group PLC 6212 -160.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Bt Group PLC 193.92 0.74 Relx PLC 1963.5 10.00
Oil & Gas (13) 9373.53 -3.68 8016.43 9731.36 9755.90 9769.30 5.49 1.35 13.48 259.75 9675.91 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bunzl PLC 2166 16.00 Rentokil Initial PLC 447.00 12.00
Oil & Gas Producers (9) 9070.56 -3.70 7757.33 9418.61 9440.45 9408.21 5.50 1.36 13.37 250.52 9700.17 Burberry Group PLC 2322 63.00 Rightmove PLC 527.00 -1.40
Oil Equipment Services & Distribution (4)10684.31 -2.58 9137.44 10967.78 11128.23 14315.79 4.98 0.76 26.39 355.08 8985.70 FTSE GLOBAL EQUITY INDEX SERIES Carnival PLC 3738 35.00 Rio Tinto PLC 4539.5 -158.50
Basic Materials (26) 6445.31 -3.14 5512.17 6654.46 6728.82 6106.27 4.78 2.71 7.71 163.69 7200.36 Centrica PLC 73.94 -2.14 Rolls-Royce Holdings PLC 857.20 -4.80
Chemicals (8) 13977.46 -0.34 11953.81 14025.64 14076.83 17638.15 2.39 2.17 19.34 239.14 13096.08 Jul 31 No of US $ Day Mth YTD Total
YTD Gr Div Jul 31 No of US $ Day Mth YTD Total YTD Gr Div Coca-Cola Hbc AG 2898 62.00 Royal Bank Of Scotland Group PLC 217.10 0.10
Forestry & Paper (1) 20968.79 -5.35 17932.93 22154.19 22363.02 25452.44 3.88 2.66 9.71 576.00 24367.05 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Compass Group PLC 2110 27.00 Royal Dutch Shell PLC 2466 -128.00
Industrial Metals & Mining (2) 6502.70 -0.96 5561.24 6565.65 6712.44 5121.37 12.17 1.66 4.95 273.23 7278.98 FTSE Global All Cap 8893 590.48 -0.7 0.2 15.0 883.11
16.8 2.4 Oil & Gas Producers 108 350.50 -0.1 -0.1 6.8 623.32 9.2 4.1 Crh PLC 2732 -3.00 Royal Dutch Shell PLC 2472 -130.50
Mining (15) 18384.46 -3.38 15722.77 19027.93 19251.98 16704.36 4.88 2.82 7.26 473.88 10793.00 FTSE Global Large Cap 1773 524.20 -0.7 0.2 14.7 806.40
16.7 2.5 Oil Equipment & Services 34 258.08 0.7 0.7 15.8 404.56 18.9 4.7 Croda International PLC 4666 -22.00 Rsa Insurance Group PLC 560.60 -
FTSE Global Mid Cap 2148 776.43 -0.6 0.1 15.4 1095.55
17.0 2.2 Basic Materials 354 486.43 -0.6 -0.6 8.7 790.76 10.9 3.3 Dcc PLC 6904 -58.00 Sage Group PLC 736.80 16.80
Industrials (105) 5632.71 0.66 4817.21 5595.81 5612.94 5729.19 2.51 1.01 39.42 81.78 6111.47
Construction & Materials (15) 6272.98 0.34 5364.78 6251.54 6232.92 6493.56 2.72 0.31 120.18 111.85 7031.67 FTSE Global Small Cap 4972 814.16 -0.6 0.4 16.2 1107.21
17.7 2.0 Chemicals 163 714.37 -0.4 -0.4 8.0 1158.72 10.1 2.7 Diageo PLC 3526 82.50 Sainsbury (J) PLC 195.70 -0.95
Aerospace & Defense (10) 5287.14 0.37 4521.67 5267.84 5311.42 5891.59 2.57 -0.21 -187.49 79.10 5939.59 FTSE All-World 3921 345.62 -0.7 0.1 14.8 546.71
16.7 2.5 Forestry & Paper 20 245.49 -0.9 -0.9 -0.9 447.53 1.8 4.2 Direct Line Insurance Group PLC 321.30 -1.10 Schroders PLC 3047 74.00
General Industrials (6) 4834.53 -0.64 4134.59 4865.43 4905.61 5528.29 3.25 1.06 29.02 67.20 5843.92 FTSE World 2593 614.82 -0.7 0.3 15.3 1305.25
17.1 2.5 Industrial Metals & Mining 94 358.96 -0.5 -0.5 0.3 583.79 2.4 4.7 Evraz PLC 645.20 -5.80 Scottish Mortgage Investment Trust PLC 568.50 5.50
Electronic & Electrical Equipment (10) 9378.79 1.03 8020.93 9283.00 9360.53 8322.54 1.51 2.02 32.68 83.75 8870.41 FTSE Global All Cap ex UNITED KINGDOM In 8579 617.57 -0.7 0.3 15.4 907.86
17.1 2.3 Mining 77 687.34 -1.0 -1.0 17.4 1129.85 20.0 3.6 Experian PLC 2544 44.00 Segro PLC 760.60 -3.60
Industrial Engineering (12) 13900.21 -0.82 11887.75 14014.85 14098.28 14777.71 2.36 1.57 26.86 224.42 17764.60 FTSE Global All Cap ex USA 7071 481.62 -0.2 -1.3 9.9 781.55
12.3 3.2 Industrials 750 417.65 -0.6 -0.6 19.1 627.33 20.7 2.0 Ferguson PLC 6230 66.00 Severn Trent PLC 2032 17.00
Industrial Transportation (6) 3828.52 0.86 3274.23 3795.73 3800.80 5003.39 5.75 0.90 19.39 141.07 3807.41 FTSE Global All Cap ex JAPAN 7555 609.08 -0.7 0.2 15.8 919.93
17.6 2.4 Construction & Materials 147 501.87 -0.1 -0.1 13.7 790.21 15.7 2.4 Flutter Entertainment PLC 6498 -42.00 Smith & Nephew PLC 1924.5 65.50
Support Services (46) 8611.92 1.28 7365.09 8502.79 8511.69 8121.48 2.25 1.65 27.00 106.67 9377.22 FTSE Global All Cap ex Eurozone 8224 617.61 -0.8 0.4 15.4 904.36
17.1 2.3 Aerospace & Defense 35 861.13 -1.2 -1.2 21.9 1276.89 23.4 1.9 Fresnillo PLC 605.80 4.80 Smith (Ds) PLC 347.30 -9.40
FTSE Developed 2172 560.40 -0.7 0.3 15.5 844.92
17.3 2.4 General Industrials 65 214.34 -1.1 -1.1 13.2 349.96 14.9 2.3 Glaxosmithkline PLC 1710.4 7.80 Smiths Group PLC 1662 20.00
Consumer Goods (42) 20568.81 2.21 17590.87 20123.84 20313.21 20983.51 4.01 1.65 15.10 444.77 16483.51
FTSE Developed All Cap 5701 587.49 -0.7 0.3 15.7 873.89
17.4 2.3 Electronic & Electrical Equipment 133 440.44 -0.7 -0.7 17.4 602.07 18.8 1.7 Glencore PLC 254.45 -12.00 Smurfit Kappa Group PLC 2576 -32.00
Automobiles & Parts (2) 4471.53 0.28 3824.15 4459.09 4747.12 10486.99 1.51 5.11 12.97 71.99 4528.27
FTSE Developed Large Cap 908 520.45 -0.7 0.3 15.5 797.93
17.3 2.5 Industrial Engineering 151 742.17 -0.9 -0.9 12.4 1105.85 14.4 2.5 Halma PLC 2028 38.00 Spirax-Sarco Engineering PLC 9090 95.00
Beverages (5) 27968.94 2.31 23919.61 27338.10 27392.52 22482.78 1.92 1.78 29.29 230.70 20708.07
FTSE Developed Europe Large Cap 237 356.38 0.2 -2.0 11.2 642.97
14.5 3.6 Industrial Transportation 129 736.89 -0.1 -0.1 19.6 1111.88 21.4 2.2 Hargreaves Lansdown PLC 2113 13.00 Sse PLC 1101 0.50
Food Producers (11) 7575.95 1.11 6479.11 7492.80 7522.30 7392.31 2.40 1.98 21.11 106.06 6863.49
FTSE Developed Europe Mid Cap 347 570.42 0.0 -2.1 10.0 908.49
12.6 3.1 Support Services 90 481.52 -0.4 -0.4 30.2 686.38 31.4 1.4 Hiscox LTD 1682 -18.00 St. James's Place PLC 971.00 -13.00
Household Goods & Home Construction (15)13524.79 -1.26 11566.68 13697.33 13936.63 14202.49 4.63 1.86 11.61 415.09 10485.63
FTSE Dev Europe Small Cap 740 783.79 0.2 -3.1 9.6 1204.63
12.1 3.1 Consumer Goods 549 481.75 -0.8 -0.8 13.8 752.76 15.8 2.7 HSBC Holdings PLC 666.00 9.30 Standard Chartered PLC 699.20 22.40
Leisure Goods (2) 13459.77 4.55 11511.07 12874.12 13254.68 9545.12 3.42 1.37 21.30 217.80 13540.07
FTSE North America Large Cap 268 640.25 -1.0 1.3 18.7 909.25
20.2 2.0 Automobiles & Parts 136 348.19 -0.8 -0.8 2.9 531.34 5.4 3.5 Imperial Brands PLC 2149.5 54.50 Standard Life Aberdeen PLC 299.70 0.90
Personal Goods (5) 37545.49 1.26 32109.68 37078.75 37617.33 33184.25 2.63 2.67 14.22 519.74 26952.61
FTSE North America Mid Cap 407 898.87 -0.9 1.1 21.0 1180.31
22.2 1.7 Beverages 64 701.40 -1.0 -1.0 17.3 1104.06 18.8 2.3 Informa PLC 877.00 3.00 Taylor Wimpey PLC 161.20 -0.60
Tobacco (2) 34838.35 5.91 29794.47 32893.41 33109.75 46109.58 6.88 1.21 12.05 1219.09 25393.44
FTSE North America Small Cap 1352 913.35 -0.9 1.3 21.0 1161.07
22.0 1.5 Food Producers 130 658.60 -0.4 -0.4 17.8 1053.09 19.9 2.3 Intercontinental Hotels Group PLC 5642 -77.00 Tesco PLC 224.00 0.70
Health Care (19) 12377.53 1.51 10585.52 12193.39 12326.37 10652.45 3.37 0.90 32.96 244.55 10274.23
FTSE North America 675 424.11 -1.0 1.3 19.1 615.73
20.5 1.9 Household Goods & Home Construction 60 467.02 -1.3 -1.3 16.6 727.09 19.0 2.6 International Consolidated Airlines Group S.A. 413.50 -10.90 Tui AG 813.60 -4.00
Health Care Equipment & Services (9) 8682.13 3.78 7425.13 8365.92 8394.41 7891.82 1.57 2.50 25.48 90.60 7802.43
FTSE Developed ex North America 1497 252.28 -0.2 -1.5 9.6 440.86
12.0 3.2 Leisure Goods 44 212.84 1.6 1.6 15.0 288.27 15.9 1.3 Intertek Group PLC 5962 254.00 Unilever PLC 5007 51.50
Pharmaceuticals & Biotechnology (10)16867.51 1.21 14425.44 16665.94 16864.28 14447.56 3.62 0.81 34.33 355.14 12544.85
FTSE Japan Large Cap 189 361.58 -0.5 0.2 6.9 489.85
8.3 2.5 Personal Goods 102 852.71 -1.0 -1.0 19.0 1243.16 20.4 1.8 Itv PLC 108.05 -2.90 United Utilities Group PLC 799.60 11.00
Consumer Services (90) 5304.64 -0.06 4536.64 5307.98 5318.40 5405.78 2.95 1.81 18.71 110.42 5298.81 FTSE Japan Mid Cap 323 570.23 -0.7 -0.1 3.1 735.81
4.3 2.2 Tobacco 13 948.34 -1.8 -1.8 6.3 2174.01 9.6 6.2
Food & Drug Retailers (6) 3939.32 0.12 3368.98 3934.50 3941.32 4465.93 2.49 1.97 20.40 69.54 4813.59 Jd Sports Fashion PLC 640.00 -9.80 Vodafone Group PLC 151.66 1.58
FTSE Global wi JAPAN Small Cap 826 627.89 -0.8 1.4 6.3 839.04
7.6 2.2 Health Care 277 541.05 -0.5 -0.5 6.6 812.23 8.0 2.0 Johnson Matthey PLC 3210 -5.00 Whitbread PLC 4510 -13.00
General Retailers (25) 2106.69 -0.77 1801.69 2123.08 2092.93 2359.61 3.40 2.02 14.57 43.51 2594.43
FTSE Japan 512 152.21 -0.6 0.1 6.1 231.02
7.5 2.5 Health Care Equipment & Services 92 1056.20 -1.2 -1.2 13.5 1257.28 14.2 1.0 Just Eat PLC 758.20 -3.20 Wpp PLC 975.60 5.20
Media (20) 9063.72 -0.08 7751.48 9070.67 9135.04 8269.72 2.85 1.88 18.66 198.54 5954.61
FTSE Asia Pacific Large Cap ex Japan 899 681.36 -0.7 -1.6 9.1 1138.68
11.2 2.9 Pharmaceuticals & Biotechnology 185 360.38 -0.1 -0.1 3.3 571.02 5.1 2.6 Kingfisher PLC 218.70 -3.70
Travel & Leisure (39) 9443.25 0.14 8076.06 9429.92 9463.29 9778.25 3.04 1.62 20.25 197.82 9528.02
FTSE Asia Pacific Mid Cap ex Japan 825 831.18 -0.3 -3.2 3.7 1332.63
5.6 3.2 Consumer Services 453 525.95 -1.0 -1.0 17.6 725.10 18.7 1.4
Telecommunications (5) 2313.97 0.83 1978.95 2295.00 2304.73 2708.41 5.78 0.34 50.82 39.57 2941.43 FTSE Asia Pacific Small Cap ex Japan 1756 527.67 0.0 -1.4 5.7 826.64
7.4 3.0 Food & Drug Retailers 65 263.63 -0.7 -0.7 0.6 386.29 2.3 2.5
Fixed Line Telecommunications (3) 2359.28 0.39 2017.71 2350.10 2342.16 2712.97 7.43 1.42 9.45 3.29 2386.97
Mobile Telecommunications (2) 3427.02 1.00 2930.86 3392.93 3418.26 4042.78 5.11 -0.30 -65.01 81.43 3963.72
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
1724 533.78
3192 738.66
-0.7
-0.4
-1.8
-1.0
8.6 947.58
10.6 2.9 General Retailers
9.1 1174.15
11.4 3.0 Media
150 841.65
90 371.34
-1.1
-1.2
-1.1
-1.2
21.4 1120.41
19.9 515.37
22.1
21.2
1.0
1.7
UK STOCK MARKET TRADING DATA
Utilities (8) 6532.08 0.72 5586.37 6485.44 6509.40 6820.33 6.81 0.58 25.37 339.63 8574.33 FTSE Emerging Large Cap 865 705.42 -0.5 -1.2 9.0 1129.17
11.3 3.0 Travel & Leisure 148 506.03 -0.8 -0.8 15.8 709.70 17.1 1.8 Aug 01 Jul 31 Jul 30 Jul 29 Jul 26 Yr Ago
Electricity (3) 6556.71 0.03 5607.44 6554.96 6542.05 7425.47 8.40 0.32 37.22 538.98 11329.95 FTSE Emerging Mid Cap 884 916.22 -0.1 -0.4 9.6 1451.48
12.2 3.4 Telecommunication 92 152.99 -0.7 -0.7 6.8 314.54 10.0 4.4 - - - - - -
Gas Water & Multiutilities (5) 6174.08 0.91 5280.20 6118.29 6150.55 6296.81 6.37 0.67 23.32 269.37 8015.76 FTSE Emerging Small Cap 1443 726.44 0.1 -0.1 9.4 1104.85
11.6 3.2 Fixed Line Telecommuniations 38 124.19 -0.9 -0.9 5.0 284.75 8.8 5.2 Order Book Turnover (m) 189.56 206.00 191.56 178.77 178.77 178.77
Financials (306) 4940.85 0.58 4225.51 4912.57 4970.51 5139.38 4.19 1.48 16.13 129.27 4970.64 FTSE Emerging Europe 81 398.04 0.3 -0.3 21.9 702.23
28.1 6.3 Mobile Telecommunications 54 167.74 -0.5 -0.5 9.3 304.30 11.6 3.4 Order Book Bargains 985680.00 952224.00 871491.00 763776.00 763776.00 763776.00
Banks (10) 3761.27 1.02 3216.71 3723.43 3787.28 4179.13 5.23 1.66 11.53 122.86 3060.36 FTSE Latin America All Cap 235 941.61 -0.2 0.5 11.9 1547.27
14.1 3.4 Utilities 189 295.79 -0.2 -0.2 10.1 619.91 12.7 3.5 Order Book Shares Traded (m) 1524.00 1448.00 1313.00 1333.00 1333.00 1333.00
Nonlife Insurance (8) 3760.06 -0.28 3215.68 3770.52 3811.62 3621.25 3.77 1.55 17.09 90.34 7125.92 FTSE Middle East and Africa All Cap 334 681.31 -0.5 -0.1 7.0 1132.15
9.5 3.5 Electricity 130 330.29 -0.1 -0.1 10.4 682.02 12.7 3.4 Total Equity Turnover (£m) 6160.10 4393.73 6901.25 4435.67 4435.67 4435.67
Life Insurance/Assurance (7) 7896.30 0.13 6753.07 7886.36 7946.58 8356.51 4.67 1.67 12.81 248.62 8441.50 FTSE Global wi UNITED KINGDOM All Cap In 314 327.07 0.0 -1.9 8.3 594.86
11.0 4.2 Gas Water & Multiutilities 59 300.83 -0.3 -0.3 9.6 651.58 12.5 3.8 Total Mkt Bargains 1125008.00 1081149.00 979599.00 890473.00 890473.00 890473.00
Real Estate Investment & Services (18) 2363.03 -0.22 2020.91 2368.19 2410.74 2676.46 2.46 1.82 22.32 29.04 6637.00 FTSE Global wi USA All Cap 1822 731.69 -1.0 1.4 19.4 1004.92
20.7 1.8 Financials 840 247.99 -0.5 -0.5 13.4 432.48 16.0 3.3 Total Shares Traded (m) 3778.00 3329.00 4275.00 3505.00 3505.00 3505.00
Real Estate Investment Trusts (40) 2491.21 -0.48 2130.53 2503.34 2578.46 2788.89 4.64 0.32 68.26 69.52 3396.37 FTSE Europe All Cap 1479 417.60 0.2 -2.0 11.2 725.48
14.4 3.6 Banks 277 199.26 -0.4 -0.4 8.3 378.40 11.4 4.2 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (39) 10124.15 1.74 8658.38 9951.02 9992.73 9160.29 3.34 1.71 17.55 200.17 12467.36 FTSE Eurozone All Cap 669 402.15 0.2 -2.2 11.0 700.92
14.2 3.3 Nonlife Insurance 72 289.80 -0.4 -0.4 13.2 442.15 15.3 2.2 (c) Market closed.
Equity Investment Instruments (184) 10836.78 -0.05 9267.83 10842.48 10864.85 10414.19 2.48 1.13 35.81 163.45 6255.70 FTSE RAFI All World 3000 3292 6717.11 -0.5 -0.7 10.4 9467.54
12.8 3.3 Life Insurance 60 232.11 -0.8 -0.8 16.0 396.06 18.6 3.2
Non Financials (325) 4950.94 -0.26 4234.14 4963.68 4993.01 4936.17 4.02 1.45 17.20 111.24 7950.30 FTSE RAFI US 1000 1064 11978.37 -0.9 1.1 15.9 16511.99
17.6 2.5 Financial Services 203 342.12 -0.8 -0.8 23.4 490.05 24.8 1.8
Technology (17) 2218.30 1.38 1897.14 2188.17 2200.50 1841.89 2.85 0.75 46.92 40.98 3013.91 FTSE EDHEC-Risk Efficient All-World 3921 406.30 -0.5 0.2 13.4 593.56
15.1 2.5 Technology 264 317.62 -1.2 -1.2 25.6 400.89 26.7 1.3 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 2477.08 1.30 2118.45 2445.18 2457.61 2056.32 2.91 0.69 49.85 46.65 3560.00 FTSE EDHEC-Risk Efficient Developed Europe 584 310.20 0.2 -1.9 8.7 503.23
11.4 3.2 Software & Computer Services 134 568.09 -1.4 -1.4 26.1 674.21 26.6 0.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (3) 3020.69 2.92 2583.36 2935.11 2986.22 2495.73 1.78 2.66 21.11 32.78 3661.38 Oil & Gas 153 358.64 0.0 -2.8 8.1 624.29
10.6 4.2 Technology Hardware & Equipment 130 228.92 -0.9 -0.9 25.1 305.52 26.8 2.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 11 105.66 -0.1 -0.1 11.9 147.86 13.4 1.5 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Real Estate Investment & Services 145 348.59 -1.0 -1.0 9.4 616.42 11.6 3.0 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 7493.68 7500.43 7500.84 7524.03 7534.15 7530.22 7539.56 7534.97 7547.98 7551.60 7487.74 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
FTSE 250 19842.65 19840.13 19858.18 19868.64 19881.76 19871.28 19865.93 19836.57 19853.07 19886.46 19817.88 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 5550.33 5553.94 5557.41 5553.30 5553.09 5555.71 5557.23 5555.78 5556.79 5563.15 5550.33
FTSE All-Share 4098.77 4101.77 4102.63 4113.11 4118.00 4115.99 4119.98 4116.97 4123.27 4124.95 4095.84 WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Time of FTSE 100 Day's high:15:08:00 Day's Low07:05:00 FTSE 100 2010/11 High: 7609.32(03/07/2019) Low: 6692.66(03/01/2019) www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE All-Share Day's high:15:08:00 Day's Low07:05:00 FTSE 100 2010/11 High: 4150.07(03/07/2019) Low: 3657.52(03/01/2019) Group companies and is used by FTSE International Limited under licence.
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Barclays Int 8914.000 9147.000 3014.000 1659.000 12.100 3.300 0.00000 2.50000 - 4.000 6.544 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- British American Tobacco Int 12170.000 11636.000 3865.000 3969.000 123.200 117.700 50.75000 48.80000 Aug 8 0.000 0.000 07/29 10.00 MUST Mustang Energy PLC 11.00 0.00 11.00 10.00 92.4
There are currently no rights offers by any companies listed on the LSE. Capita Int 1852.000 2012.600 31.200 42.300 1.590 5.210 0.00000 0.00000 - 0.000 0.000 07/26 5.00 BSFA BSF Enterprise PLC 5.00 - 0.00 0.00 101.7
Coats Group Int 704.600 724.600 85.400 69.000 0.032 0.024 0.00000 0.50000 - 1.200 1.500 07/17 1.15 AIM UPR Uniphar PLC 0.00 -0.01 1.25 1.14 0.0
ConvaTec Group Int 888.900 921.300 61.300 88.500 0.020 0.050 0.00000 1.71100 - 3.900 5.900 06/25 106.00 AIM AGFX Argentex Group PLC 134.10 0.90 155.00 126.00 15181.1
Inmarsat Int 733.300 717.200 116.600L 119.100L 0.270L 0.290L 0.00000 8.00000 - 12.000 19.500 06/21 350.00 TRN Trainline PLC 442.00 14.00 451.00 400.00 212460.8
Intertek Group Int 1442.600 1347.700 206.300 196.600 89.100 84.900 0.00000 31.90000 - 67.200 79.700
London Stock Exchange Group Int 1138.000 1057.000 363.000 360.000 70.700 71.100 0.00000 17.20000 - 43.200 54.400
Mondi Int 3771.000 3727.000 632.000 490.000 0.958 0.725 0.00000 21.74200 - 52.300 64.300
Rio Tinto Int 20722.000 19914.000 5186.000 6732.000 2.525 2.516 0.00000 126.5820 - 64.100
0
Royal Dutch Shell Int 174278.000 186000.000 14323.000 17977.000 1.110 1.440 0.00000 47.72000 - 141.700 189.800
RSA Insurance Group Int 3359.000 3381.000 227.000 296.000 15.300 21.800 0.00000 7.30000 - 13.700 20.300
Schroders Int 1224.800 1336.200 319.300 371.100 92.400 106.000 0.00000 35.00000 - 79.000 114.000
Standard Chartered Int 7830.000 7627.000 2414.000 2346.000 0.380 0.407 0.00000 6.01100 - 15.000 16.700
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 2 August 2019 ★ FINANCIAL TIMES 17

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 34.41 0.36 34.64 26.80 5.47 13.87 251128.73 Lockheed 365.57 3.40 373.37 241.18 2.25 18.66 103236.05
ANZ 28.01 0.10 30.39 22.98 5.52 13.43 54386.9 Nokia 4.92 0.04 5.74 4.17 - - - AstellasPh 1518.5 -35.00 2056 1356 2.28 14.50 26511.79 AtlasCpcoB 268.20 3.40 287.50 187.68 - - - AutomData 166.36 -0.16 172.00 121.40 1.66 45.99 72404.57 Lowes♦ 102.71 1.31 118.23 84.75 1.74 37.23 80413.35
BHPBilltn 40.26 -0.50 42.33 30.31 4.02 17.42 81241.22 SampoA 37.70 0.03 44.94 37.24 - - - Bridgestne 4118 18.00 4661 3906 3.54 11.77 28987.45 Ericsson 86.94 1.84 96.74 69.16 - - - Avago Tech 295.76 5.77 323.20 202.77 2.77 38.47 117735.51 Lyondell 84.12 0.43 116.63 73.94 4.43 8.12 28200.66
CmwBkAu 81.92 -0.38 83.99 65.23 5.16 16.80 99337.61 France (€) Canon♦ 2997 26.50 3679 2876.5 5.12 18.34 36948.65 H&M 172.82 4.16 174.10 120.50 - - - BakerHu 25.31 -0.08 35.55 20.09 2.65 79.84 13050.4 Marathon Ptl 57.16 0.77 88.45 45.47 3.12 11.81 37872.99
CSL 228.90 -0.72 232.69 173.00 0.98 40.94 71050.75 Airbus Grpe 129.42 1.36 133.86 77.50 - - - CntJpRwy 21710 -210.00 26255 20875 0.61 10.64 41339 Investor 466.90 6.30 467.80 366.10 - - - BankAm 30.74 0.06 31.91 22.66 1.86 11.46 292311.64 Marsh&M♦ 99.67 0.87 103.37 74.30 1.52 32.49 50965.68
NatAusBk 28.64 0.13 29.00 22.52 6.68 14.41 56560.13 AirLiquide 126.25 1.25 127.20 102.05 - - - Denso 4806 168.00 6036 4081 2.65 16.15 35003.59 Nordea Bk 61.87 -0.13 99.34 61.71 - - - Baxter 85.89 1.92 86.65 61.05 0.88 30.09 43818.37 MasterCard♦ 277.62 5.35 283.33 171.89 0.31 44.81 280358.55
Telstra 3.95 -0.02 4.00 2.71 3.72 15.44 32180.41 AXA 23.17 0.27 23.99 18.43 - - - EastJpRwy 9987 -18.00 10940 9063 1.37 14.17 35247.57 SEB 90.82 -0.24 100.50 78.88 - - - BB & T 51.49 -0.05 53.08 40.68 3.00 13.35 39433.39 McDonald's 212.32 1.60 218.96 153.13 1.91 30.20 162118.29
Wesfarmers 39.63 0.44 40.43 30.40 5.52 13.19 30779.93 BNP Parib 42.85 0.67 56.93 38.14 - - - Fanuc 19615 85.00 22800 15570 2.22 27.06 36992.97 SvnskaHn 87.50 0.30 113.00 86.60 - - - BectonDick 256.68 3.88 264.68 208.62 1.10 79.11 69234.78 McKesson 147.75 8.80 149.99 106.11 0.95 932.16 27537.22
Westpc 28.80 0.15 30.44 23.30 6.31 14.90 68849.49 ChristianDior 472.20 2.20 498.20 310.20 - - - FastRetail 65760 210.00 70230 46450 0.70 42.37 64476.62 Swedbank 132.10 -0.10 221.70 127.20 - - - BerkshHat 309699.32 1033.32 335900 279410 - 20.32 223947.91 Medtronic 103.47 1.53 103.95 81.66 1.80 32.56 138769.48
Woolworths 35.58 -0.04 35.84 27.03 2.56 29.23 30677.26 Cred Agr 10.87 0.09 13.12 9.10 - - - Fuji Hvy Ind 2529 -15.50 3498 2208.5 5.19 14.40 17980.73 Telia Co 43.26 0.11 43.96 38.91 - - - Biogen 243.97 6.15 357.50 216.12 - 9.52 44999.74 Merck 84.36 1.37 87.07 64.87 2.28 28.54 217197
Belgium (€) Danone 79.14 0.74 79.42 60.20 - - - Hitachi 3880 -12.00 4198 762.20 1.24 17.76 34691.02 Volvo 144.45 0.20 162.20 112.85 - - - BkNYMeln♦ 47.47 0.55 54.27 42.13 2.12 13.12 45453.34 Metlife 50.29 0.87 51.16 37.76 3.11 10.53 47794.07
AnBshInBv 92.71 1.64 92.71 56.39 - - - EDF 11.17 -0.05 15.73 10.78 - - - HondaMtr 2722.5 12.00 3519 2610 3.72 8.63 45585.01 BlackRock 463.63 -4.05 509.87 360.79 2.50 18.76 71640.93 Microsoft 140.55 4.28 141.68 93.96 1.17 33.501077009.06
Switzerland (SFr)
KBC Grp 58.26 -0.02 68.70 54.66 - - - Engie SA 13.85 -0.07 14.39 11.31 - - - JapanTob 2408.5 -11.00 3196 2376 6.05 11.33 44525.58 Boeing 342.30 1.12 446.01 292.47 2.10 41.84 192615.64 Mnstr Bvrg 64.96 0.49 66.38 47.74 - 37.46 35310.71
ABB 18.81 0.13 23.54 18.03 3.97 44.87 41183.87
Esslr Intl 128.75 1.30 129.55 100.60 1.20 31.22 32686.21 KDDI 2861.5 8.00 3173 2331.5 3.34 12.12 62299.77 BrisMySq 45.45 1.04 63.69 42.48 3.42 12.56 74337.41 MondelezInt 54.47 0.98 55.85 38.79 1.82 22.37 78453.33
Brazil (R$) CredSuisse 12.03 0.28 15.94 10.36 2.13 13.53 31059.43
Hermes Intl 644.60 8.00 652.00 462.40 - - - Keyence 64050 920.00 73870 50780 0.28 37.69 71994.51 CapOne 93.40 0.98 101.26 69.90 1.64 8.46 43860.31 Monsanto 127.95 0.02 127.97 114.19 1.64 23.62 56462.29
Ambev 20.66 0.53 20.77 14.54 1.48 30.04 84901.41 Nestle 105.70 0.56 106.10 77.74 2.15 32.58 317740.62
LOreal 245.20 3.20 257.80 182.00 - - - MitsbCp 2884 -52.50 3638 2773 3.95 8.52 42388.33 CardinalHlth 47.01 1.28 58.31 42.01 3.78 265.37 14011.79 MorganStly♦ 44.44 -0.12 51.18 36.74 2.41 10.21 74758.5
Bradesco 31.77 0.66 35.89 19.73 0.93 17.15 33469.81 Novartis 91.46 0.72 94.40 69.22 2.90 18.41 233488.59
LVMH 379.10 3.80 392.65 243.50 - - - MitsubEst 2011.5 -0.50 2127 1657 1.36 22.76 25866.31 Carnival 47.36 0.13 67.69 44.76 4.07 11.59 24956.71 MylanNV 20.90 - 39.59 16.63 - 364.92 10773.28
Cielo 7.36 0.12 15.46 6.25 16.80 7.83 5224.71 Richemont 85.40 -0.46 89.58 60.44 2.04 16.59 45029.09
Orange 13.52 0.10 15.22 13.08 - - - MitsubishiEle 1438 5.50 1600.5 1146 2.54 13.24 28540.71 Caterpillar♦ 132.52 0.85 159.37 112.06 2.36 13.20 75784.95 Netflix 325.20 2.21 386.80 231.23 - 134.12 142383.9
ItauHldFin 30.51 0.61 91.08 27.19 3.95 11.99 39527.44 Roche 266.65 0.35 283.30 229.20 3.19 19.94 189230.65
PernodRic 162.25 3.20 165.45 128.35 - - - MitsuiFud 2456.5 -15.00 2857 2346 1.63 15.75 22511.77 CBS 51.44 -0.07 59.56 41.38 1.31 6.87 18104.54 NextEraE 209.08 1.91 212.50 164.25 2.16 31.65 100170.76
Petrobras 28.95 0.16 33.70 20.48 0.80 17.26 56297.55 Swiss Re 96.56 1.24 102.95 85.88 4.99 74.05 31933.53
Renault 50.31 -0.23 78.96 49.82 - - - MitUFJFin 539.10 14.90 740.90 493.00 3.91 9.23 68108.28 Celgene 93.48 1.62 98.97 58.59 - 13.41 65927.66 Nike 86.63 0.60 90.00 66.53 0.96 36.09 108448.95
Vale 49.04 -0.77 62.42 40.51 2.89 19.63 36263.03 Swisscom 482.50 1.90 499.40 427.00 4.26 17.48 25246.91
Safran 130.55 0.70 137.20 101.00 - - - Mizuho Fin 159.00 4.60 205.00 150.10 4.52 48.94 37319.36 CharlesSch 42.96 -0.27 52.70 37.83 1.15 17.79 57345.33 NorfolkS 190.02 -1.10 211.46 138.65 1.67 19.34 50052.56
Canada (C$) Syngent 453.40 0.90 471.20 402.50 - 28.04 43035.76
Sanofi 75.49 0.03 80.28 71.74 - - - Murata Mfg 4889 46.00 16430 4328 3.48 49.76 30539.74 Charter Comms 390.52 5.14 417.13 272.91 - 69.57 87245.32 Northrop 349.05 3.48 358.96 223.63 1.35 18.94 59058.62
BCE 60.86 1.22 62.75 50.72 4.63 20.70 41474.11 UBS 11.10 -0.07 16.30 11.08 6.16 10.26 43248.7
Sant Gbn 34.88 0.13 38.92 28.18 - - - NipponTT 4936 14.00 5447 4050 3.32 12.30 88987.82 Chevron Corp 123.20 0.09 127.60 100.22 3.44 18.28 234663.68 NXP 105.66 2.27 108.51 67.62 0.90 17.11 34730.73
BkMontrl♦ 98.29 -0.51 109.00 86.25 3.65 11.40 47539.64 Zurich Fin 346.50 -0.50 353.00 282.40 5.19 14.66 52362.81
Schneider 78.74 0.66 81.36 57.58 - - - Nissan Mt 709.40 -1.40 1108.5 700.10 7.70 13.81 27676.45 Chubb 152.53 -0.31 154.26 119.54 1.84 19.56 69839.02 Occid Pet 53.70 2.34 83.35 47.00 5.55 11.14 40186.32
BkNvaS 70.86 0.40 78.60 66.36 4.38 11.56 65557.08 Nomura 374.60 31.00 565.90 330.70 1.54 -26.16 12096.77 Taiwan (NT$) Cigna 169.74 -0.19 226.61 141.95 0.02 17.54 64407.24 Oracle 56.62 0.32 60.50 42.40 1.38 19.78 188857.39
SFR Group 34.50 - 34.56 21.87 - -23.02 17905.81
Brookfield 65.34 0.67 65.56 49.87 1.15 16.90 49236.22 Nppn Stl 1706 -10.50 2435 1696.5 4.27 6.64 14985.88 Chunghwa Telecom♦ 107.00 -1.00 117.50 96.30 4.23 23.69 26626.66 Cisco 56.59 1.19 58.26 40.25 2.21 21.16 242246.68 Pepsico 128.69 0.88 135.24 104.53 2.77 14.96 179923.44
SocGen 23.50 1.30 38.44 20.81 - - -
CanadPcR 315.46 0.35 323.71 228.35 0.85 19.91 33400.74 NTTDCMo 2621.5 6.50 3095 2257.5 3.82 15.32 80818.12 Formosa PetChem 105.00 -1.00 151.00 100.50 5.66 20.78 32085.81 Citigroup 70.24 -0.92 75.24 48.42 2.22 10.95 162427.73 Perrigo 54.26 0.25 80.55 36.28 1.31 68.46 7378.89
Total 46.55 -0.49 56.82 44.84 - - -
CanImp 103.56 -0.27 125.21 99.51 4.82 9.96 34873.1 Panasonic 910.90 -13.80 1490.5 845.10 3.00 8.21 20654.32 HonHaiPrc♦ 77.90 -0.70 107.50 67.00 3.03 10.34 34642.51 CME Grp 198.56 4.14 207.84 158.86 1.34 39.88 71078.9 Pfizer♦ 38.15 -0.34 46.47 37.68 3.37 20.98 211773.59
UnibailR 190.00 0.35 236.45 177.35 5.82 23.36 22215.04
CanNatRs 32.53 -0.90 47.67 30.11 3.91 14.40 29351.49 Seven & I 3699 -29.00 5203 3573 2.47 16.07 30308.72 MediaTek 314.00 -0.50 328.00 199.50 3.00 24.25 16012.73 Coca-Cola 52.96 0.33 54.82 44.25 2.85 32.44 225933.46 Phillips66 103.40 0.84 123.97 78.44 3.05 9.44 46897.19
Vinci 94.16 0.92 94.96 70.18 - - -
CanNatRy 126.29 1.37 127.96 96.46 1.52 21.60 68910.6 ShnEtsuCh 11050 -105.00 11300 7982 1.65 16.70 43675.68 TaiwanSem 256.50 -3.00 286.00 206.50 2.94 21.07 213358.81 Cognizant 67.50 2.36 82.29 56.73 1.11 20.74 38426.6 PhilMorris 84.20 0.59 92.74 64.67 5.17 17.54 130998.6
Vivendi 25.02 -0.16 26.69 20.81 - - -
Enbridge 44.53 0.45 51.22 39.40 5.70 22.57 68223.91 Softbank 5693 65.00 6045 3401.5 0.35 9.94 109971.92 Thailand (THB) ColgtPlm♦ 72.09 0.35 76.41 57.41 2.24 28.71 61890.34 PNCFin♦ 143.02 0.12 147.23 108.45 2.35 14.09 64564.65
GtWesLif 28.34 -0.64 34.42 26.83 5.46 11.41 19912.86 Germany (€)
Sony 6123 -47.00 6973 4507 0.55 9.79 71974.7 PTT Explor 47.25 - 55.25 45.00 3.84 13.75 43722.52 Comcast 43.64 0.47 45.30 32.61 1.75 17.45 197115.3 PPG Inds 118.02 0.63 121.29 94.37 1.55 24.58 27887.29
ImpOil 35.88 -0.26 44.69 33.52 1.95 14.86 20799.69 Allianz 211.85 1.45 219.05 170.46 3.58 12.76 99440.19
SumitomoF 3820 13.00 4775 3483 4.52 10.23 49412.71 United Arab Emirates (Dhs) ConocPhil♦ 59.50 0.42 79.96 56.75 1.85 10.34 67245.47 Praxair 164.50 -0.99 169.75 140.00 2.03 13.79 47306.22
Manulife 23.69 -0.21 25.18 18.33 3.66 9.38 35164.92 BASF 60.70 0.17 82.99 57.35 5.18 22.24 61653.09
Takeda Ph 3904 269.00 4943 3498 4.20 37.96 56884.94 Emirtestele♦ 17.24 -0.28 17.80 15.20 4.46 17.23 40818.39 Corning 30.64 -0.12 36.56 27.67 2.37 19.33 24040.95 Priceline 1905.64 -1.38 2067.99 1612.41 - 20.30 92937.2
Nutrien 71.76 -0.60 76.17 59.97 2.97 183.59 31514.89 Bayer 60.25 1.50 97.03 52.02 4.33 73.15 62133.69
TokioMarine 5803 6.00 5833 4929 2.83 16.64 38084.12 United Kingdom (p) Costco 279.84 4.21 284.31 189.51 0.81 35.66 123070.61 ProctGmbl♦ 118.70 0.66 121.76 78.49 2.25 30.24 297738.74
RylBkC♦ 104.08 -0.14 107.91 90.10 3.45 13.18 113151.78 BMW 67.49 0.66 86.74 61.14 5.61 8.68 44929.29
Toyota 7092 68.00 7410 6045 2.83 12.06 213903.74 CrownCstl 134.81 1.55 137.85 103.21 3.01 92.09 56044 Prudntl 92.49 -8.82 106.64 75.61 3.73 11.56 37550.94
Suncor En 38.21 0.34 54.84 35.53 3.94 10.97 45324.92 Continental 124.46 -0.78 198.00 112.46 3.42 9.61 27527.7 AscBrFd 2466 46.00 2659 2011 1.82 21.30 23719.07
Mexico (Mex$) CSX 69.28 -1.12 80.73 58.47 1.27 17.49 55297.62 PublStor 245.58 2.82 251.28 193.89 3.11 30.70 42833.15
ThmReut 91.61 2.97 93.44 58.40 2.02 265.68 34742.88 Daimler 46.80 -0.10 60.00 44.51 6.83 12.66 55368.24 AstraZen 7200 139.00 7349.3 5312 3.10 53.42 110784.27
AmerMvl 13.59 0.11 16.63 12.32 2.25 14.16 31790.64 CVS♦ 56.78 0.91 82.15 51.72 3.28-132.37 73755.95 Qualcomm 72.34 -0.82 90.34 49.10 3.27 26.50 87943.66
TntoDom 77.13 -0.02 80.05 65.56 3.26 13.60 106830.07 Deut Bank 7.10 0.06 11.26 5.80 1.52 -4.27 16215.94 Aviva 409.60 3.50 504.60 361.80 6.90 10.84 19971.61
FEMSA UBD 174.71 1.01 192.50 163.60 1.37 18.17 19682 Danaher 142.08 1.58 145.50 94.59 0.43 44.82 101920 Raytheon 183.10 0.81 210.89 144.27 1.85 17.66 50999.58
TrnCan 65.68 1.06 67.15 47.90 3.96 17.05 46186.3 Deut Tlkm 15.05 0.17 15.88 13.35 8.49 36.13 79255.86 Barclays 155.88 1.80 197.50 145.00 4.17 8.67 32316.38
WalMrtMex 56.60 0.06 57.26 47.41 1.43 27.39 51517.77 Deere 166.47 0.82 171.22 128.32 1.62 17.41 52770.25 Regen Pharm 312.00 7.24 442.00 287.66 - 15.84 33610.95
ValeantPh 30.80 -1.06 36.02 14.01 - -5.02 8158.48 DeutsPost 29.40 -0.11 32.18 23.36 3.70 17.45 39947.8 BP 538.70 -7.00 603.20 481.35 5.99 15.67 130444.75
Delphi 18.19 -0.55 45.38 13.18 2.61 6.27 1599.94 S&P Global 260.31 15.36 262.83 156.68 0.74 37.47 64088.32
E.ON 9.10 0.05 10.26 8.16 3.12 8.74 22152.65 Netherlands (€) BrAmTob 3155.5 203.50 4240 2336.5 6.19 11.99 71478.76
China (HK$) Delta♦ 61.49 0.45 63.44 45.08 2.17 9.63 39980.84 Salesforce 157.41 2.91 167.56 113.60 - 115.69 122150.16
Fresenius Med 62.82 -0.08 91.74 55.44 1.83 15.86 21388.22 Altice 4.17 0.80 4.27 1.53 - - - BSkyB 1727.5 1.50 1740 893.50 0.76 36.60 38843.72
AgricBkCh 3.17 -0.02 3.91 3.15 6.17 4.95 12449.22 Devon Energy 25.76 -1.24 44.36 20.37 1.16 23.22 10696.93 Schlmbrg 38.80 -1.17 67.31 34.46 4.92 27.28 53660.6
Fresenius SE 45.78 0.24 71.00 38.28 1.55 13.25 22829.06 ASML Hld 207.55 4.75 211.50 130.12 - - - BT 193.92 0.74 268.60 185.86 7.82 8.98 23376.3
Bk China 3.18 -0.02 3.84 3.18 6.10 4.88 33973.22 DiscFinServ 89.65 -0.09 92.98 54.36 1.61 11.84 29022.29 Sempra Energy 136.23 0.80 141.86 104.88 2.50 36.99 37379.91
HenkelKgaA 84.85 -0.20 99.35 76.20 1.97 16.94 24377.05 Heineken♦ 98.14 1.02 104.00 74.28 - - - Compass 2110 27.00 2111 1467.5 1.79 28.59 42159.75
BkofComm 5.74 0.01 7.06 5.40 5.49 5.45 25675.6 Disney 144.31 1.30 147.15 100.35 1.11 17.35 259714.55 Shrwin-Will 520.62 7.58 523.26 355.28 0.73 43.77 48030.5
Linde 174.05 0.30 191.25 130.75 1.62 17.22 104468.15 ING 9.84 -0.23 13.28 9.12 - - - Diageo 3526 82.50 3532 2513 1.85 29.41 107845.07
BOE Tech 1.01 0.02 1.45 0.83 - -118.01 25.67 DominRes 75.95 1.66 79.47 67.41 4.20 38.61 60939.57 SimonProp 158.86 -3.34 191.49 155.04 4.70 22.27 49085.45
MuenchRkv 218.00 0.20 228.80 179.95 3.73 16.00 34791.54 Unilever 52.78 0.45 55.35 45.43 - - - GlaxoSmh 1710.4 7.80 1749.4 1408.8 4.68 19.25 102195.4
Ch Coms Cons♦ 6.60 -0.04 8.87 6.51 4.18 5.15 3733.31 DowDupont♦ 30.52 -0.65 48.38 30.06 14.45 7.46 68559.76 SouthCpr 35.70 -0.10 49.03 29.01 4.28 19.89 27593.82
SAP 113.18 1.46 125.00 83.95 1.30 44.11 153760.02 Norway (Kr) Glencore 254.45 -12.00 343.60 249.75 6.21 13.50 44593.22
Ch Evrbrght 3.57 0.03 4.10 3.14 5.65 5.87 5782.77 DukeEner 87.16 0.44 91.67 78.00 3.93 22.86 63456.57 Starbucks 97.08 2.39 99.72 51.20 1.42 36.06 117583.3
Siemens 95.00 -3.99 121.70 90.85 3.79 18.58 89297.57 DNB 159.25 0.50 174.20 135.50 - - - HSBC 666.00 9.30 727.90 596.40 5.88 12.58 162236.85
Ch Rail Cons♦ 8.96 -0.15 11.94 8.68 2.32 6.60 2376.78 Eaton♦ 82.67 1.19 89.46 64.46 3.16 16.85 34975.56 StateSt 57.71 -0.38 90.20 53.53 3.11 10.97 21535.29
Volkswgn 154.75 0.05 167.40 129.60 2.39 7.12 50498.9 Equinor 157.10 -1.80 234.60 154.80 - - - Imperial Brands 2149.5 54.50 3009 1821.4 8.74 13.22 24907.15
Ch Rail Gp 5.47 -0.05 8.21 5.40 2.36 6.83 2940.29 eBay 41.95 0.76 42.00 26.01 0.31 16.54 35181.94 Stryker 214.71 4.93 222.59 144.75 0.90 24.08 80107.56
Hong Kong (HK$) Telenor 181.95 1.85 190.80 148.10 - - - LlydsBkg 52.84 -0.49 66.79 49.52 6.07 9.94 46267.63
ChConstBk 6.04 -0.03 7.21 6.01 5.39 5.51 185520.43 Ecolab 202.68 0.95 209.24 135.77 0.80 43.05 58420.92 Sychrony Fin 36.45 0.57 36.87 21.78 2.20 7.95 24244.91
AIA 79.70 -1.20 88.50 58.20 1.01 22.24 123091.01 Natl Grid♦ 856.00 11.70 892.00 744.50 5.43 19.41 34908.17
China Vanke♦ 29.15 -0.50 35.60 21.50 3.44 8.71 5876.54 Qatar (QR) Emerson 65.09 0.21 79.70 55.39 2.79 19.02 40005.61 T-MobileUS 79.87 0.14 85.22 59.14 - 21.96 68228.91
BOC Hold 29.90 -0.20 39.95 27.55 4.16 10.36 40387.91 Prudential 1705 7.00 1843 1325 2.83 14.60 53595.28
ChinaCitic 4.39 0.03 5.41 4.33 6.50 4.54 8346.81 QatarNtBk 19.51 -0.11 20.05 16.18 2.96 14.08 49496.08 EOG Res 81.35 -4.50 133.53 80.41 0.93 14.81 47209.41 Target 86.71 0.31 90.39 60.15 2.73 16.33 44424.52
Ch OSLnd&Inv 26.55 -0.35 31.30 22.35 3.05 6.79 37163.44 RBS 217.10 0.10 274.20 200.10 2.53 17.30 31562.09
ChinaLife♦ 20.25 0.10 23.35 15.44 2.22 47.74 19251.21 Russia (RUB) EquityResTP 78.68 -0.21 81.88 62.40 2.59 57.02 29153.74 TE Connect 93.40 1.00 97.99 69.84 1.82 10.46 31463.3
ChngKng 57.20 -2.15 72.50 50.30 2.92 5.53 26990.64 ReckittB 6212 -160.00 7174 5559 2.75 19.36 53148.19
ChinaMBank♦ 39.40 0.15 42.75 27.35 2.36 11.23 23109.22 Gzprm neft 234.17 -2.73 256.40 139.50 3.12 3.52 86649.56 Exelon 44.59 -0.47 51.18 41.72 2.92 19.93 43294.88 Tesla Mtrs 241.91 0.30 387.46 176.99 - -68.49 42024.68
Citic Ltd 10.22 -0.18 13.28 10.12 3.73 6.19 37982.87 RELX♦ 1963.5 10.00 1995.13 1466.5 2.14 25.47 46403.64
ChinaMob 66.35 -0.40 87.70 66.05 4.73 10.61 173566.57 Lukoil 5223 -3.50 5996 4351.5 3.91 6.24 61228.56 ExpScripts 92.33 -3.47 101.73 66.93 - 11.10 52061.19 TexasInstr♦ 128.28 3.27 130.37 87.70 2.18 24.57 120353.09
Citic Secs♦ 14.86 -0.30 21.20 11.62 3.00 15.20 4325.41 RioTinto 4539.5 -158.50 5039 3460.5 5.29 7.34 73971.62
ChinaPcIns 33.35 -0.35 34.65 24.20 2.69 14.09 11824.89 MmcNrlskNckl 14418 -228.00 15218 10489 8.44 13.69 35662.28 ExxonMb 73.70 -0.66 87.36 64.65 4.15 18.21 311831.62 TheTrvelers 147.67 1.05 155.09 111.08 2.02 15.45 38451.16
CK Hutchison 72.50 -1.15 92.50 72.15 3.87 7.52 35718.47 RollsRoyce 857.20 -4.80 1104.5 750.00 1.36 -6.64 19369.39
ChMinsheng 5.39 -0.03 6.36 5.25 1.55 4.28 5729.52 Novatek 1330.8 11.20 1382.2 908.00 1.90 7.67 63158.38 Facebook 197.81 3.58 208.66 123.02 - 35.12 475876.09 ThrmoFshr 283.68 6.00 305.45 208.34 0.23 38.86 113466.65
CNOOC 12.82 -0.12 15.78 11.34 4.30 9.99 73126.73 RylDShlA 2466 -128.00 2687 2209.5 6.02 12.66 137733.14
ChMrchSecs RMB 16.64 -0.27 19.99 11.13 1.99 25.00 13787.96 Rosneft 418.05 -3.90 522.80 390.75 4.47 9.17 69251.99 Fedex 170.49 -0.04 259.25 150.68 1.47 87.13 44465.23 TimeWrnr 98.77 0.82 103.89 85.88 1.54 15.09 77269.69
HangSeng 184.80 -2.10 216.80 166.00 3.61 15.53 45138.26 Shire# 4690 111.00 4780 2944 0.58 11.63 56567.13
Chna Utd Coms RMB 5.87 -0.06 7.57 4.91 0.32 43.32 18027.28 Sberbank 229.29 -4.20 250.65 166.00 6.76 5.95 77365.89 FordMtr♦ 9.51 -0.02 10.56 7.41 6.02 18.45 37269.61 TJX Cos 53.97 -0.59 57.15 41.49 1.35 23.73 65447.67
HK Exc&Clr 264.60 -1.00 286.20 195.60 3.36 37.95 42530.32 StandCh 699.20 22.40 742.60 514.20 1.91 48.13 28005.9
ChShenEgy♦ 15.50 -0.10 20.40 15.40 6.67 6.33 6730.08 Surgutneftegas 26.87 -0.19 29.30 24.06 2.13 1.38 15004.56 Franklin 32.26 -0.37 35.82 27.34 2.99 12.61 16373.88 UnionPac 179.72 -0.23 180.54 128.08 1.67 23.62 126618.09
MTR 50.95 -0.60 55.75 37.50 2.10 20.24 40071.21 Tesco 224.00 0.70 266.80 187.05 1.64 16.53 22282.79
ChShpbldng RMB 5.94 -0.06 7.10 3.86 0.18 155.00 15802.42 GenDyn♦ 185.79 -0.15 207.72 143.87 2.00 17.25 53664.35 UPS B 120.67 1.20 125.09 89.89 2.85 24.70 84167.09
SandsCh 38.05 -0.05 44.70 29.85 4.98 21.97 39311.21 Saudi Arabia (SR) Vodafone♦ 151.66 1.58 188.30 122.22 8.63 -10.83 49148.88
ChStConEng RMB 5.82 -0.07 6.72 4.91 2.53 6.99 34691.39 GenElectric 10.27 -0.18 13.78 6.66 1.39 -4.36 89562.7 USBancorp 56.95 -0.20 57.81 43.14 2.31 14.61 90667.95
SHK Props 121.70 -5.20 142.00 99.50 3.64 9.88 45052.83 AlRajhiBnk 68.80 0.10 76.90 50.83 4.85 16.94 45859.95 WPP 975.60 5.20 1323.5 791.00 6.15 11.57 15007.26
ChUncHK 7.67 0.01 10.70 7.57 0.74 20.07 29983.41 GenMills 54.42 1.31 54.74 36.42 3.47 19.47 32755.63 UtdHlthcre 250.91 1.90 287.94 208.07 1.34 20.89 238450.59
Tencent 370.00 1.80 400.40 251.40 0.21 39.45 450063.44 Natnlcombnk 54.90 0.40 64.40 38.35 2.74 16.79 43913.55 United States of America ($)
CNNC Intl RMB 5.61 -0.02 6.73 5.19 1.91 18.60 12651.74 GenMotors 41.58 1.24 41.90 30.56 3.41 7.09 58969.68 UtdTech 135.05 1.45 144.40 100.48 2.05 23.27 116452.46
SaudiBasic 107.40 -1.20 129.60 104.40 3.94 22.60 85907.4 21stC Fox A 37.25 -0.08 41.70 27.73 - 17.46 13197.82
CSR♦ 6.15 -0.04 8.62 6.11 2.65 13.81 3434.43 India (Rs) GileadSci 66.51 0.99 79.61 60.32 3.28 15.71 84793.33 ValeroEngy 86.12 0.87 122.42 68.81 3.57 14.12 35932.83
SaudiTelec♦ 108.00 -1.20 117.40 74.50 3.56 19.76 57591.56 3M 176.75 2.03 219.75 159.32 3.02 22.33 101883.42
Daqin RMB 7.89 -0.01 9.14 7.51 5.70 8.49 16994.97 Bhartiartl 323.90 -13.70 371.15 254.15 1.32 371.91 24065.43 GoldmSchs 219.15 -0.98 245.08 151.70 1.36 9.78 80173.57 Verizon 55.98 0.71 61.58 51.43 3.99 15.51 231496.18
Gree Elec Apl 0.02 - 0.05 0.01 - -0.18 33.14 HDFC Bk■ 2221.8 -29.85 2503.3 1885 0.64 27.69 87968.6 Singapore (S$) AbbottLb♦ 87.84 0.74 88.76 63.07 1.30 56.80 154965.68 Halliburton 22.02 -0.99 42.57 20.98 3.12 15.27 19240.64 VertexPharm 180.61 13.99 195.81 151.80 - 23.31 46258.08
GuosenSec RMB 13.06 -0.57 15.13 6.71 1.10 26.23 15516.12 Hind Unilevr 1731.3 4.65 1869.5 1477.2 1.21 62.51 54271.48 DBS 26.51 0.10 28.64 22.65 5.48 5.51 49404.32 Abbvie♦ 67.11 0.49 100.23 65.06 5.49 20.16 99203.48 HCA Hold 130.68 -2.83 147.42 110.31 1.03 13.41 44732.73 VF Cp 87.42 0.03 97.00 67.18 2.07 29.86 34719.52
HaitongSecs 7.72 -0.13 11.50 6.31 3.34 11.28 3362.86 HsngDevFin♦ 2086.8 -35.00 2357.85 1644.5 0.89 23.72 52134.87 JardnMt US$ 61.58 0.69 72.05 10.99 2.51 14.28 45461.88 Accenture 196.71 4.13 197.47 132.63 1.43 28.34 131888.9 Hew-Pack 21.51 0.47 27.08 18.06 2.60 9.34 32392.8 Viacom 30.53 0.18 34.44 23.31 2.44 8.37 10795
Hngzh HikVDT RMB 30.71 -0.16 37.24 22.32 1.87 26.05 35924.73 ICICI Bk♦ 417.05 -7.55 443.90 294.10 0.34 42.19 38968.6 JardnStr US$ 35.00 0.50 40.70 31.55 0.90 11.72 38717.51 Adobe 304.53 5.67 313.11 204.95 - 59.05 147830.67 HiltonWwde 97.00 0.45 101.14 65.64 0.59 37.49 27824.89 Visa Inc 181.66 3.66 184.07 121.60 0.50 36.60 315904.56
Hunng Pwr♦ 4.73 0.15 5.72 4.04 2.37 36.23 2840.44 Infosys 768.85 -24.80 804.00 599.85 2.11 22.43 48640.49 OCBC 11.42 -0.12 12.19 10.36 3.28 11.21 35318.04 AEP 88.30 0.49 91.99 68.92 2.84 23.12 43553.61 HomeDep 216.76 3.07 219.30 158.09 1.91 23.45 238498.01 Walgreen 55.71 1.22 86.31 49.31 3.05 11.35 50314.12
IM Baotou Stl RMB 1.56 -0.02 2.11 1.44 0.31 23.34 7159.68 ITC 267.55 -2.65 322.95 263.65 1.79 28.11 47549.96 SingTel♦ 3.36 0.03 3.56 2.83 4.92 18.78 39967.9 Aetna 212.70 0.70 213.36 166.89 0.92 19.50 69637.98 Honywell 173.44 0.98 178.47 123.48 1.68 20.65 124791.47 WalMartSto 111.87 1.49 115.49 85.78 1.74 41.83 319364.9
In&CmBkCh 5.25 -0.05 6.19 5.10 5.06 5.82 58215.37 L&T♦ 1358.05 -29.25 1607 1182.5 1.10 23.05 27589.96 UOB 26.28 -0.12 28.48 23.39 3.42 11.04 32104.66 Aflac 53.15 0.51 57.18 41.45 1.90 13.55 39621.68 HumanaInc 299.16 2.41 355.88 225.65 0.49 17.10 40397.08 WellsFargo 48.55 0.14 59.53 43.02 3.27 11.52 218185.07
IndstrlBk RMB 18.86 -0.27 20.66 14.50 3.30 6.68 52061.27 OilNatGas 136.90 -1.95 185.40 127.60 4.05 8.66 24938.77 South Africa (R) AirProd 229.29 1.02 232.47 148.44 1.88 31.07 50525.23 IBM 151.74 3.50 154.36 105.94 3.98 16.44 134539.19 Williams Cos 26.07 1.43 32.22 20.36 5.01-155.30 31584.79
Kweichow RMB 959.30 -13.30 1035.6 509.02 1.45 31.90 174597.33 RelianceIn 1180.25 14.00 1417.5 1016.4 - 18.20 108337.48 Firstrand 61.73 -0.02 71.95 59.00 4.29 12.16 23821.36 Alexion 116.08 2.79 141.86 92.56 - 20.51 26028.26 IllinoisTool 156.31 2.08 160.78 117.75 2.25 22.32 50921.91 Yum!Brnds 117.94 5.42 119.72 78.22 1.19 29.76 36086.71
Midea 1.42 0.16 1.69 1.25 6.72 -17.10 39.01 SBI NewA 317.15 -15.05 373.80 247.40 - 132.26 40986.01 MTN Grp 113.40 0.67 114.83 69.07 5.31 24.61 14699.55 Allergan 161.91 1.41 197.00 114.27 1.67 -8.07 53074.41 Illumina 305.10 5.72 380.76 268.62 - 50.73 44849.7 Venezuela (VEF)
New Ch Life Ins♦ 39.20 -0.10 46.95 27.30 1.51 12.98 5178.95 SunPhrmInds 425.10 -1.65 679.30 344.55 0.44 41.20 14769.42 Naspers N 3633 125.57 3750.01 2290.85 0.17 28.09 109631.95 Allstate 106.15 -1.25 109.13 77.00 1.73 14.83 35340.01 Intcntl Exch 88.53 0.67 92.31 69.69 1.05 27.27 49916.15 Bco de Vnzla 670.00 90.00 670.00 0.70 317.83 - 227.98
PetroChina♦■ 4.17 0.01 6.52 4.10 2.42 13.20 11240.44 Tata Cons 2180.05 -25.65 2292.5 1784.35 1.53 26.68 118455.47 Alphabet 1230.44 12.24 1296.98 977.66 - 26.03 368438.06 Intel 51.78 1.23 59.59 42.36 2.27 12.64 231819.06
South Korea (KRW) Bco Provncl 39500 1500 39500 120.00 - 6.25 378.58
PingAnIns 93.20 -0.20 98.00 65.95 1.89 12.05 88679.19 Altria 48.24 1.17 66.04 42.40 6.33 15.08 90253.17 Intuit 282.62 5.31 284.97 182.61 0.59 55.64 73267.37
Indonesia (Rp) HyundMobis♦ 243500 2500 250000 165000 1.60 12.40 19525.62 Mrcntl Srvcs 74000-1000.00 75000 14.46 0.00 7.18 400.45
PngAnBnk RMB 14.10 -0.03 14.84 8.64 0.92 10.37 35076.93 Amazon 1888.28 21.50 2050.5 1307 - 82.04 929660.25 John&John 130.58 0.36 148.99 121.00 2.67 22.68 346697.21
Bk Cent Asia 22300 200.00 24700 16800 - - 38879.26 KoreaElePwr 26650-1250.00 36000 23850 - -9.60 14394.3
Pwr Cons Corp RMB 4.91 -0.05 6.25 4.56 1.81 10.53 7928.02 AmerAir 30.40 -0.11 43.89 27.02 1.26 9.39 13536.23 JohnsonCn 42.67 0.23 42.85 28.30 2.27 17.74 38320.59
Israel (ILS) SK Hynix 77700 800.00 85600 56700 1.88 4.09 47592.26 Closing prices and highs & lows are in traded currency (with variations for that
SaicMtr RMB 24.59 -0.25 32.80 22.69 7.13 8.68 40983.74 AmerExpr♦ 125.74 1.37 129.34 89.05 1.18 16.30 104323.17 JPMrgnCh 116.06 0.06 119.24 91.11 2.38 13.41 376479.28
TevaPha 27.36 - 94.75 26.40 - -2.41 8553.88 SmsungEl♦ 45200 -150.00 48450 36850 3.06 8.41 227028.02 country indicated by stock), market capitalisation is in USD. Highs & lows are
ShenwanHong 0.07 -0.01 0.16 0.07 - -2.45 76.11 AmerIntGrp 55.63 -0.36 57.59 36.16 2.15-248.60 48384.39 Kimb-Clark 136.59 0.94 140.62 100.32 2.84 27.62 47005.57
Italy (€) Spain (€) AmerTower 212.00 0.38 218.79 140.40 1.55 67.09 93708.97 based on intraday trading over a rolling 52 week period.
ShgPdgBk RMB 11.65 -0.22 12.38 9.60 0.82 6.34 47436.91 KinderM♦ 20.88 0.26 21.50 14.62 3.89 22.09 47263.72 ♦ ex-dividend
Enel 6.24 0.04 6.62 4.22 4.13 13.73 70155.38 BBVA 4.64 0.04 6.33 4.48 5.51 6.56 34180.79 Amgen 189.05 2.47 210.19 166.30 2.80 15.67 115310.66
Sinopec Corp 5.05 -0.01 8.03 5.01 12.04 9.71 16460.76 Kraft Heinz 33.08 1.07 64.99 26.96 7.21 -4.15 40355.58 ■ ex-capital redistribution
ENI 14.10 -0.11 16.71 13.39 5.51 12.51 56650.01 BcoSantdr 3.88 0.01 4.84 3.80 5.83 9.66 69585.57 Anadarko 74.52 0.86 76.23 40.40 1.47 -64.51 37438.97
Sinopec Oil RMB 2.34 -0.02 3.35 1.82 - 152.49 4082.82 Kroger 21.66 0.50 32.74 20.70 2.34 9.93 17301.98 # price at time of suspension
Generali 16.86 0.02 17.38 13.63 4.97 12.66 29256.01 CaixaBnk 2.26 0.03 4.23 2.23 7.38 10.34 14975.43 Anthem 294.93 0.32 317.99 227.16 1.00 19.93 75448.17
Denmark (kr) Iberdrola 8.62 0.05 9.13 5.94 6.13 16.92 59468.64 L Brands 25.98 0.03 38.00 21.45 7.53 12.23 7179.32
IntSPaolo 2.00 0.04 2.66 1.80 9.61 9.12 38726.27 Aon Cp♦ 192.72 3.47 198.61 135.30 0.81 36.11 46353.33 LasVegasSd 60.89 0.45 72.10 47.39 4.77 25.51 46868.58
DanskeBk 100.25 - 195.45 97.58 - - - Inditex 27.56 0.53 28.86 21.85 2.07 25.87 94987.11
Luxottica 49.00 -0.34 59.54 48.62 2.11 22.75 26878.18 Apple 217.51 4.47 233.47 142.00 1.30 19.341000779.82 LibertyGbl 26.86 0.19 29.55 19.88 - -41.15 5512.31
MollerMrsk 7698 110.00 10085 6854 - - - Repsol 14.27 -0.12 17.24 13.23 6.31 11.73 24599.88
Unicred 10.67 0.02 15.32 9.54 2.84 6.19 26357.53 ArcherDan 41.83 0.75 52.07 37.77 3.02 15.47 23431.71 Lilly (E) 110.53 1.58 132.13 97.84 1.97 45.77 107304.97
NovoB 330.15 6.15 349.70 265.15 - - - Telefonica 6.88 -0.05 8.06 6.59 5.72 - 39480.14

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
Gree Elec Apl 0.02 0.02 0.00 0.00 0.01 35.7 12.50 ShenwanHong 0.07 0.07 -0.01 -6.85 -0.01 -13.9 -13.75 Aug 01 date Coupon S* M* F* price yield yield yield US Aug 01 date Coupon S* M* F* price yield yield yield US
Altice 4.17 3.37 0.80 23.77 0.76 22.4 31.83 Pfizer 38.15 38.48 -0.34 -0.87 -4.53 -10.6 -12.87 High Yield US$ US$
Vodafone 151.66 150.08 1.58 1.05 19.66 14.9 -98.81 Prudntl 92.49 101.31 -8.82 -8.71 -9.97 -9.7 -9.38 Qwest Capital Funding, Inc. 08/21 7.63 B+ WR BB 104.55 5.20 0.04 -0.72 3.19 Barclays plc 01/28 4.34 BBB Baa3 A 102.49 3.95 -0.06 -0.01 -
MylanNV 20.90 20.90 0.00 0.00 2.46 13.3 7.61 Nissan Mt 709.40 710.80 -1.40 -0.20 -72.20 -9.2 -8.22 High Yield Euro Barclays plc 01/28 4.34 BBB Baa3 A 102.49 3.95 -0.06 -0.01 -
Gzprm neft 234.17 236.90 -2.73 -1.15 22.17 10.5 -4.63 AIA 79.70 80.90 -1.20 -1.48 -7.10 -8.2 -6.23 Aldesa Financial Services S.A. 04/21 7.25 - - B 71.10 28.23 0.00 0.64 25.98 Goldman Sachs Group, Inc. (The) 02/28 5.00 BBB+ A3 A 108.41 3.84 -0.04 -0.14 -
Midea 1.42 1.26 0.16 12.70 0.13 10.1 6.77 ChngKng 57.20 59.35 -2.15 -3.62 -4.90 -7.9 -6.21 United Utilities PLC 08/28 6.88 BBB Baa1 A- 122.29 3.92 -0.04 -0.07 1.92
HumanaInc 299.16 296.75 2.41 0.81 24.72 9.0 14.47 HCA Hold 130.68 133.51 -2.83 -2.12 -11.19 -7.9 -2.97 Emerging US$ United Utilities PLC 08/28 6.88 BBB Baa1 A- 122.29 3.92 -0.04 -0.07 1.92
Diageo 3526.00 3443.50 82.50 2.40 285.50 8.8 -98.96 Glencore 254.45 266.45 -12.00 -4.50 -21.35 -7.7 -99.07 Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34 Goldman Sachs Group, Inc. (The) 05/29 5.25 BBB+ A3 A 111.20 3.87 -0.04 0.04 1.87
Amgen 189.05 186.58 2.47 1.33 14.94 8.6 1.44 Corning 30.64 30.75 -0.12 -0.37 -2.37 -7.2 -10.21 Brazil 01/22 12.50 BB- Ba2 BB- 113.83 6.26 0.07 0.01 4.25
Brazil 01/23 2.63 BB- Ba2 BB- 95.75 3.80 -0.01 -0.40 1.29 Euro
Alphabet 1230.44 1218.20 12.24 1.00 94.50 8.3 11.92 Fresenius Med 62.82 62.90 -0.08 -0.13 -4.80 -7.1 -7.10 Citigroup Inc. 02/30 4.25 BBB Baa2 A- 118.73 0.80 -0.01 -0.26 -1.20
Nutrien 71.76 72.36 -0.60 -0.83 5.07 7.6 2.47 SBI NewA 317.15 332.20 -15.05 -4.53 -24.15 -7.1 -12.21 Colombia 03/23 2.63 BBB- Baa2 BBB 97.75 3.24 0.10 -0.38 0.99
Poland 03/23 3.00 A- A2 A- 100.62 2.83 0.01 -0.21 0.58 HBOS plc 03/30 4.50 BBB- Baa1 A- 113.72 1.51 0.00 0.11 -0.49
S&P Global 260.31 244.95 15.36 6.27 17.96 7.4 12.09 CaixaBnk 2.26 2.24 0.03 1.30 -0.17 -7.0 -18.74 HBOS plc 03/30 4.50 BBB- Baa1 A- 113.72 1.51 0.00 0.11 -0.49
ShnEtsuCh 11050.00 11155.00 -105.00 -0.94 760.00 7.4 10.11 LlydsBkg 52.84 53.33 -0.49 -0.92 -3.93 -6.9 -99.08 Turkey 03/23 3.25 - Ba3 BB 88.50 6.59 -0.30 0.91 4.34
Mexico 10/23 4.00 BBB+ A3 BBB 104.65 2.81 -0.01 -0.11 0.95 Goldman Sachs Group, Inc. (The) 02/31 3.00 BBB+ A3 A 123.92 0.82 -0.03 -0.38 -1.18
McKesson 147.75 138.95 8.80 6.33 9.63 7.0 10.24 Franklin 32.26 32.63 -0.37 -1.13 -2.36 -6.8 -7.89
Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07 Yen
Starbucks 97.08 94.69 2.39 2.52 6.10 6.7 14.95 SHK Props 121.70 126.90 -5.20 -4.10 -8.90 -6.8 -8.08
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Mexico 06/26 1.09 BBB+ A3 BBB 101.24 0.90 -0.01 0.07 -
VertexPharm 180.61 166.62 13.99 8.40 11.05 6.5 -0.77 Unicred 10.67 10.66 0.02 0.15 -0.77 -6.7 -1.42
Hngzh HikVDT 30.71 30.87 -0.16 -0.52 1.82 6.3 11.35 SandsCh 38.05 38.10 -0.05 -0.13 -2.50 -6.2 1.61 Russia 06/28 12.75 BBB- Baa3 BBB- 165.30 3.96 0.00 -0.06 - £ Sterling
MTN Grp 113.40 112.73 0.67 0.59 6.49 6.1 8.13 HaitongSecs 7.72 7.85 -0.13 -1.66 -0.49 -6.0 -12.10 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 139.93 2.09 -0.02 -0.33 0.09
Ambev 20.66 20.13 0.53 2.63 1.17 6.0 16.11 Siemens 95.00 98.99 -3.99 -4.03 -5.96 -5.9 -5.90 Brazil 04/21 2.88 BB- Ba2 BB- 104.44 0.20 -0.01 -0.11 -1.81 innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 128.68 3.20 0.00 -0.01 0.40
Tesla Mtrs 241.91 241.61 0.30 0.12 13.09 5.7 6.50 ING 9.84 10.07 -0.23 -2.31 -0.62 -5.9 -3.80 Mexico 02/22 1.88 BBB+ A3 BBB 104.31 0.19 0.01 0.02 -1.82 Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other London
Mexico 04/23 2.75 BBB+ A3 BBB+ 107.76 0.76 0.00 -0.07 -1.56 close. *S - Standard & Poor’s, M - 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 03/28 3.00 BBB- Baa2 BBB 117.04 1.00 0.02 -0.15 -1.42
Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. 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
Aug 01 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Aug 01 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 2.25-2.50 19-12-2018 2.00-2.25 2.00-2.25 1.25-1.50 Index change change change 1 month 1 year VIX 13.93 -2.19 16.12 36.20 11.03 Aug 01 Price £ Yield Day Week Month Year High Low £m
US Prime 5.50 19-12-2018 5.25 5.25 4.25 Markit IBoxx VXD 14.44 -0.88 15.32 33.17 4.07 - - - - - - - - -
US Discount 3.00 19-12-2018 2.75 2.75 1.75 ABF Pan-Asia unhedged 201.50 0.09 0.68 5.41 0.68 8.29 VXN 17.66 -1.12 18.78 38.70 14.55 - - - - - - - - -
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 371.80 0.19 2.25 9.68 2.25 8.93 VDAX 14.52 -0.87 15.39 - 10.48 Tr 3.75pc '19 100.30 0.63 -1.56 1.61 -16.00 1.61 102.30 100.00 28.74
UK Repo 0.75 02-08-2018 0.50 0.50 0.25 Corporates($) 300.51 -0.13 0.27 9.86 0.27 9.86 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 102.52 0.52 -1.89 -5.45 -22.39 -29.73 106.43 102.52 33.70
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 239.21 0.11 1.41 6.98 1.41 6.02 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 101.58 0.42 -2.33 -16.00 -28.81 -50.00 101.87 101.20 32.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 253.34 0.35 1.65 7.74 1.65 8.57 Tr 4pc '22 109.49 0.33 -5.71 -25.00 -37.74 -63.74 111.30 109.00 38.39
Gilts( £) 348.84 0.38 2.16 7.25 2.16 7.88 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 125.61 0.37 -9.76 -26.00 -39.34 -69.42 125.61 122.06 35.49
INTEREST RATES: MARKET Global Inflation-Lkd 272.74 -0.18 -0.68 5.55 -0.68 3.65 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 105.91 0.49 -7.55 -20.97 -31.94 -65.49 105.91 96.94 23.73
Over Change One Three Six One Markit iBoxx £ Non-Gilts 363.07 0.17 2.03 8.29 2.03 7.90 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 141.73 0.82 -4.65 -12.77 -20.39 -50.00 141.73 128.48 35.86
Aug 01 (Libor: Jul 31) night Day Week Month month month month year Overall ($) 255.51 -0.07 -0.04 6.78 -0.04 6.78 Australia 12/21 2.00 102.78 0.82 -0.01 -0.08 -0.15 -1.32 Tr 4.25pc '36 149.12 1.02 -4.67 -10.53 -16.39 -41.38 149.12 133.08 30.11
US$ Libor 2.35163 0.005 -0.002 -0.006 2.22425 2.26563 2.20688 2.18863 Overall( £) 349.77 0.32 2.12 7.57 2.12 7.88 11/28 2.75 113.76 1.18 -0.02 -0.11 -0.14 -1.48 Tr 4.5pc '42 166.66 1.21 -3.97 -7.63 -12.95 -33.52 166.66 145.84 26.95
Euro Libor -0.46300 0.008 0.006 -0.002 -0.42643 -0.41971 -0.40786 -0.33914 Overall(€) 246.27 0.26 1.43 6.95 1.43 7.34 Austria 10/23 1.75 110.29 -0.65 -0.03 -0.02 -0.09 -0.63 Tr 3.75pc '52 167.55 1.25 -3.85 -5.30 -10.07 -28.57 167.55 141.38 23.87
£ Libor 0.66863 -0.006 0.000 0.001 0.71325 0.77263 0.81350 0.85188 Treasuries ($) 237.85 -0.04 -0.29 5.01 -0.29 5.01 02/47 1.50 126.30 0.48 -0.05 -0.08 -0.20 -0.91 Tr 4pc '60 188.65 1.22 -3.94 -4.69 -8.96 -26.95 188.65 156.07 23.89
Swiss Fr Libor -0.006 -0.81720 -0.76800 -0.74780 -0.63440 FTSE Belgium 06/21 1.50 104.06 - - - - - Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor 0.014 -0.10050 -0.07333 -0.03633 0.04550 Sterling Corporate (£) - - - - - - 06/47 1.60 122.12 - - - - -
Euro Euribor
Sterling CDs
0.000
0.000
-0.39200
0.75000
-0.37500
0.77000
-0.36200
0.82500
-0.30300 Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73 Canada - - - - - - - GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 446.65 2.96 - - 3.91 6.47 03/21 0.75 98.62 1.64 0.04 0.13 0.12 -0.47
US$ CDs 0.000 2.45000 2.56000 2.65000 Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64 Denmark 11/20 0.25 101.37 - - - - - Price Indices Day's Total Return Return
Euro CDs - - - - 11/23 1.50 109.74 - - - - - Fixed Coupon Aug 01 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series 1 Up to 5 Years 91.79 0.05 2462.03 0.50 2.03 0.36
Short 7 Days One Three Six One Index change change change high low Finland - - - - - - -
09/20 0.38 101.17 -0.66 0.00 0.04 -0.02 -0.17 2 5 - 10 Years 186.96 0.23 3705.03 1.58 7.25 0.46
Aug 01 term notice month month month year Markit iTraxx 3 10 - 15 Years 222.21 0.39 4663.54 2.20 10.41 0.75
Euro -0.61 -0.31 -0.63 -0.33 -0.58 -0.28 -0.57 -0.27 -0.57 -0.27 -0.55 -0.25 Crossover 5Y 253.35 0.61 15.02 9.43 315.74 234.62 France 11/20 0.25 101.22 -0.67 -0.01 0.00 -0.03 -0.21
4 5 - 15 Years 194.92 0.28 3940.35 1.75 8.14 0.57
Sterling 0.45 0.55 0.70 0.80 0.72 0.82 0.75 0.90 0.78 0.93 Europe 5Y 50.43 0.50 4.56 0.64 73.15 45.37 05/25 0.50 106.13 -0.54 -0.03 -0.04 -0.14 -0.79
5 Over 15 Years 366.85 0.98 5865.99 3.21 13.23 1.20
Swiss Franc - - - - - - - - - - - - Japan 5Y 56.54 1.15 2.66 -1.40 72.09 53.56 05/48 2.00 134.15 0.69 -0.05 -0.11 -0.18 -0.91
7 All stocks 186.88 0.55 3879.63 2.08 8.55 1.07
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 63.35 0.01 8.88 3.27 93.48 53.22 Germany - - - - - - -
US Dollar 2.13 2.43 2.14 2.44 2.18 2.48 2.24 2.54 2.26 2.56 2.24 2.54 10/20 0.25 101.18 -0.72 -0.02 0.00 -0.02 -0.16 Day's Month Year's Total Return Return
Markit CDX 02/25 0.50 106.94 -0.72 -0.03 -0.03 -0.09 -0.75
Japanese Yen -0.20 0.00 -0.30 -0.10 -0.15 0.15 -0.10 0.20 -0.05 0.25 0.00 0.30 Index Linked Aug 01 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 160.97 3.02 4.96 -2.39 211.60 155.49 08/48 1.25 131.97 0.13 -0.05 -0.08 -0.14 -0.96
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: 1 Up to 5 Years 314.49 0.09 1.20 1.89 2545.13 1.20 3.38
Nth Amer High Yld 5Y 325.69 8.79 - - 325.69 311.41 Greece 02/25 3.00 110.21 2.08 -0.03 0.04 -0.35 -1.96
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 2 Over 5 years 805.54 0.86 3.48 14.18 6060.82 3.57 14.71
Nth Amer Inv Grade 5Y 54.97 2.36 5.36 2.89 70.26 49.61 02/25 3.00 110.21 2.08 -0.03 0.04 -0.35 -1.96
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 3 5-15 years 521.15 0.30 2.82 10.27 4113.75 3.09 11.24
Ireland 10/20 5.00 106.79 -0.57 -0.01 0.02 0.01 -0.17 4 Over 15 years 1046.62 1.04 3.72 15.43 7678.57 3.75 15.79
05/30 2.40 123.66 0.18 -0.09 -0.02 -0.09 -0.93 5 All stocks 720.86 0.76 3.19 13.04 5514.08 3.27 13.67
Italy 11/21 0.35 100.51 0.12 -0.03 0.07 -0.32 -1.15
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 10/23 0.65 100.33 0.57 -0.04 0.05 -0.48 -1.36 Yield Indices Aug 01 Jul 31 Yr ago Aug 01 Jul 31 Yr ago
09/28 4.75 129.08 1.34 -0.05 0.04 -0.50 -1.49 5 Yrs 0.28 0.31 1.04 20 Yrs 1.22 1.27 1.84
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
03/48 3.45 118.41 2.54 -0.04 0.02 -0.38 -0.94 10 Yrs 0.66 0.70 1.49 45 Yrs 1.23 1.28 1.65
Crude Oil† Aug 57.45 -0.52 Corn♦ Sep 402.25 2.00 Jul 31 Jul 31 Prev return stock Market stocks
Japan 12/21 0.10 100.74 -0.21 0.00 -0.01 0.01 -0.10 15 Yrs 1.03 1.07 1.75
Brent Crude Oil‡ 63.33 -1.00 Wheat♦ Sep 485.50 -1.00 Can 4.25%' 21 109.13 0.314 0.270 0.06 5.18 82967.15 8
12/23 0.60 103.72 -0.24 0.00 -0.01 0.01 -0.17
RBOB Gasoline† Aug 1.82 -0.02 Soybeans♦ Aug 862.25 -0.50 Fr 2.25%' 20 103.39 -1.168 -1.139 0.03 20.21 239277.59 15
12/28 2.10 121.67 -0.19 -0.01 -0.02 -0.02 -0.28 inflation 0% inflation 5%
Heating Oil† - - Soybeans Meal♦ Aug 297.50 -0.30 Swe 0.25%' 22 115.69 -2.286 -2.280 -0.24 34.16 245104.00 7
09/47 0.80 112.48 0.33 0.00 0.00 -0.02 -0.40 Real yield Aug 01 Dur yrs Previous Yr ago Aug 01 Dur yrs Previous Yr ago
Natural Gas† Aug 2.31 0.07 Cocoa (ICE Liffe)X Sep 1825.00 3.00 UK 2.5%' 22 117.38 -3.076 -3.035 1.32 15.74 733146.01 28
Netherlands 07/21 3.25 107.93 - - - - - Up to 5 yrs -2.70 3.03 -2.67 -1.75 -3.16 3.05 -3.13 -2.23
Ethanol♦ - - Cocoa (ICE US)♥ Sep 2327.00 -10.00 UK 2.5%' 24 376.25 -2.887 -3.444 2.09 6.82 733146.01 28
07/25 0.25 105.16 - - - - - Over 5 yrs -2.06 25.40 -2.03 -1.55 -2.08 25.46 -2.05 -1.57
Uranium† Aug 25.15 0.00 Coffee(Robusta)X Sep 1307.00 -30.00 UK 2%' 35 299.19 -2.372 -2.511 3.64 9.08 733146.01 28
Carbon Emissions‡ - - Coffee (Arabica)♥ Sep 97.55 -0.90 New Zealand - - - - - - - 5-15 yrs -2.63 10.30 -2.60 -1.58 -2.70 10.31 -2.67 -1.69
US 0.625%' 21 100.32 0.463 0.429 -0.03 35.84 1383964.40 40
White SugarX 325.70 1.70 05/21 6.00 107.97 - - - - - Over 15 yrs -2.00 29.62 -1.97 -1.54 -2.02 29.66 -1.99 -1.56
Diesel† - - US 3.625%' 28 128.26 0.329 0.356 0.39 16.78 1383964.40 40
Sugar 11♥ 12.16 -0.05 Norway - - - - - - - All stocks -2.07 22.40 -2.04 -1.55 -2.10 22.50 -2.07 -1.58
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 1781.50 -17.50 Cotton♥ Oct 63.08 0.00 05/21 3.75 104.39 - - - - - See FTSE website for more details www.ftse.com/products/indices/gilts
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium Alloy 1300.00 0.00 Orange Juice♥ Sep 102.10 -0.45 Portugal 04/21 3.85 107.55 - - - - - ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 5915.50 -24.50 Palm Oil♣ - - 10/23 4.95 122.35 - - - - - Gilt Closing Prices information contained herein is proprietary to
Lead 1985.00 -30.50 Live Cattle♣ Aug 106.85 0.00 BONDS: TEN YEAR GOVT SPREADS Spain 01/21 0.05 100.81 -0.49 -0.01 0.01 -0.08 -0.34 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 14725.00 170.00 Feeder Cattle♣ Aug 141.40 -1.80 10/28 5.15 145.62 0.17 -0.07 -0.06 -0.16 -1.22 accurate, complete or timely; and does not constitute investment advice.
Tin 17400.00 70.00 Lean Hogs♣ Aug 79.30 0.00 Spread Spread Spread Spread Sweden 12/20 5.00 107.56 - - - - - Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 2407.00 -31.50 Bid vs vs Bid vs vs 11/23 1.50 109.21 - - - - -
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland - - - - - - - All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1427.55 1.65 Jul 31 Month Year 04/21 2.00 105.18 -0.95 0.00 -0.02 -0.10 -0.35 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 1.18 - -0.82 Italy 1.34 - -0.66
Silver (US cents) 1647.50 2.00 S&P GSCI Spt 413.95 -2.65 -10.91 United Kingdom 01/21 1.50 101.56 0.44 -0.01 -0.04 -0.19 -0.37 Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria -0.65 - - Japan -0.19 - -2.19
Platinum 873.00 -4.00 DJ UBS Spot 77.94 -2.15 -8.73 Belgium - - - Netherlands - - - 09/23 2.25 107.66 0.37 -0.03 -0.07 -0.24 -0.68 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 1533.00 -14.00 TR/CC CRB TR 184.71 -2.68 -7.48 Canada - - - Norway - - - 12/28 6.00 149.29 0.58 -0.02 -0.06 -0.22 -0.84 use of the listed information. For all queries e-mail ft.reader.enquiries@morningstar.com
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark - - - Portugal - - - 07/47 1.50 104.18 1.32 -0.04 0.00 -0.16 -0.45
Iron Ore 113.90 -4.45 UBS Bberg CMCI TR 14.26 -2.17 -6.11 Finland - - - Spain 0.17 - -1.83 United States 11/20 1.75 99.67 2.01 0.05 0.08 0.15 -0.71 Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 62.35 0.10 LEBA EUA Carbon 28.19 0.00 26.98 France 0.69 - - Switzerland - - - 12/23 2.25 101.64 1.86 0.01 0.04 0.11 -1.02
Baltic Dry Index 1812.00 -56.00 LEBA CER Carbon 0.21 0.00 -19.23 Germany - - - United Kingdom 0.58 - -1.42 11/28 5.25 127.38 2.00 -0.03 -0.02 0.02 -0.97
LEBA UK Power 1815.00 -35.64 7.08 Greece 2.08 - - United States 2.00 - 0.00 11/47 2.75 104.31 2.54 -0.05 -0.04 0.01 -0.55
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.
unless otherwise stated.
18 ★ FINANCIAL TIMES Friday 2 August 2019

MANAGED FUNDS SERVICE

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

GBP Accumulating Share Class £ 28.98 - -0.26 0.00 Prusik Asian Smaller Cos A $ 154.82 - -2.49 0.00
GBP Distributing Share class £ 20.36 - -0.18 0.99
EUR Accumulating Share Class € 29.06 - -0.03 0.00
Aberdeen Standard Capital (JER) GBP Distributing Class (H) £ 10.97 - -0.10 1.19 Zadig Gestion (Memnon Fund) (LUX)
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Purisima Investment Fds (CI) Ltd (JER) FCA Recognised
FCA Recognised USD Accumulating Share Class $ 27.13 - -0.23 0.00 Regulated Memnon European Fund - Class U2 GBP £ 180.41 - 0.54 0.00
Aberdeen Standard Capital Offshore Strategy Fund Limited GBP Accumulating Share Class £ 34.71 - -0.30 0.00 PCG B 228.28 - -2.23 0.00
GBP Distributing Share Class £ 21.47 - -0.19 0.75
Bridge Fund £ 2.0184 - -0.0082 1.94
EUR Accumulating Share Class € 31.78 - -0.02 0.00
PCG C 223.64 - -2.19 0.00
Data Provided by
Global Equity Fund £ 2.7476 - -0.0133 1.10
GBP Distributing Class (H) £ 11.80 - -0.10 0.58
Global Fixed Interest Fund £ 0.9810 - 0.0011 4.44
Income Fund £ 0.6082 - -0.0028 2.86
Sterling Fixed Interest Fund £ 0.8895 - 0.0024 3.16
UK Equity Fund £ 2.1486 - -0.0225 3.44 Hermes Investment Funds Plc (IRL) Natixis International Funds (LUX) I SICAV (LUX) Orbis Investments (U.K.) Limited (GBR) Stonehage Fleming Investment Management Ltd (IRL)
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 702 0888 FCA Recognised 28 Dorset Square, London, NW1 6QG www.stonehagefleming.com/gbi
FCA Recognised ASG Managed Futures Fund I/A (USD) $ 106.17 106.17 0.07 0.00 www.orbis.com 0800 358 2030 enquiries@stonehagefleming.com
Hermes Abs Return Credit Fund Class F Acc £ 1.39 1.39 -0.01 0.00 Harris Global Equity Fund R/A (USD) $ 308.45 308.45 -0.90 0.00 Regulated Regulated
Hermes Abs Return Credit Fund Class F Acc USD € 1.92 1.92 -0.01 0.00 Loomis Sayles Global Growth Equity Fund I/A (USD) $ 152.78 152.78 -1.62 0.00 Orbis OEIC Global Cautious Std GBP Inc £ 10.48 - 0.00 - SF Global Best Ideas Eq B USD ACC $ 184.51 - -2.10 0.00
Hermes Asia Ex-Japan Equity Fund Class C Acc GBP £ 2.63 2.63 0.00 0.00 Loomis Sayles U.S. Growth Equity Fund I/A (USD) $ 159.74 159.74 -2.30 0.00
Hermes Asia Ex-Japan Equity Fund Class C Acc USD € 4.46 4.46 0.03 0.00
Orbis OEIC Global Balanced Standard £ 14.41
Orbis OEIC Global Equity Standard £ 16.58
-
-
-0.02 5.54
-0.13 3.96
SF Global Best Ideas Eq D GBP INC £ 228.89 - -4.35 0.24
www.morningstar.co.uk
Hermes Europe Ex-UK Equity Fund Class F Acc £ 2.25 2.25 0.00 0.00 Orbis OEIC UK Equity Standard £ 8.05 - -0.06 4.00
Data as shown is for information purposes only. No
Hermes Europe Ex-UK Equity Fund Class F Acc EUR € 4.13 4.13 0.02 0.00 Ram Active Investments SA
Hermes European Alpha Equity Fund Class F Acc £ 1.85 1.85 0.02 0.00
offer is made by Morningstar or this publication.
Natixis Investment Funds (UK) www.ram-ai.com
Dragon Capital Group Hermes European Alpha Equity Fund Class F Dis £ 1.70 1.70 0.02 1.28 Authorised Funds Other International Funds
1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Hermes European Alpha Equity Fund Class F Acc EUR € 3.49 3.49 0.05 0.00 DNCA European Select Equity Fund £ 0.98 - -0.01 1.89 RAM Systematic Emerg Markets Core Eq $ 99.53 - -0.47 -
Fund information, dealing and administration: funds@dragoncapital.com Hermes GEMs SMID Equity Fund Class F GBP Acc £ 1.20 - 0.00 - Harris Global Concentrated Equity Fund £ 1.84 - -0.02 1.34
Guide to Data
RAM Systematic Emerg Markets Eq $ 175.67 - -0.08 -
Hermes Global Emerging Markets Fund Class F Acc £ 2.15 2.15 -0.01 0.00 H2O MultiReturns Fund N/A (GBP) £ 1.75 - 0.00 0.98 RAM Systematic European Eq € 441.02 - 1.11 -
Algebris Investments (IRL) Other International Funds
Hermes Global Emerging Markets Fund Class F Acc USD € 4.29 4.29 0.01 0.00
Regulated Vietnam Property Fund (VPF) NAV $ 0.80 - 0.03 0.00 Loomis Sayles U.S. Equity Leaders N/A (GBP) £ 3.12 - -0.02 0.05 RAM Systematic Funds Global Sustainable Income Eq $ 124.79 - -0.56 0.00
Hermes Global Equity Fund Class F Acc £ 2.59 2.59 0.00 0.00 RAM Systematic Long/Short Emerg Markets Eq $ 118.19 - 0.22 -
Algebris Allocation Fund - Class I EUR € 98.55 - -0.30 0.00 Hermes Global Equity Fund Class R Acc USD € 5.32 5.32 0.01 0.00
Algebris Core Italy Fund - Class R EUR € 94.81 - 0.20 0.00 RAM Systematic Long/Short European Eq € 144.18 - 0.27 - The fund prices quoted on these pages are supplied by
Hermes Global ESG Equity Fund Class F Acc £ 1.92 1.92 -0.01 0.00
Algebris Financial Credit Fund - Class I EUR € 160.34 - -0.94 0.00 Hermes Global High Yield Credit Fund Class F Acc £ 1.61 1.61 -0.01 0.00
RAM Systematic North American Eq $ 301.87 - -3.01 -
Asset Management
Managemen
the operator of the relevant fund. Details of funds

Asset Management
Algebris Financial Credit Fund - Class R EUR € 140.72 - -0.82 0.00 Ennismore Smaller Cos Plc (IRL)
RAM Tactical Convertibles Europe € 144.33 - 0.13 - Superfund Asset Management GmbH published on these pages, including prices, are for the
Hermes Global High Yield Credit Fund Class F Acc EUR € 3.29 3.29 0.00 0.00 RAM Tactical Global Bond Total Return € 147.50 - 0.04 - purpose of information only and should only be used
Asset Management Asset Management
Algebris Financial Credit Fund - Class Rd EUR € 100.92 - -0.59 5.82 www.superfund.com, +43 (1) 247 00
5 Kensington Church St, London W8 4LD 020 7368 4220 Hermes Global Small Cap Fund Class F Acc £ 1.71 1.71 0.00 0.00 as a guide. The Financial Times Limited makes no
Algebris Financial Income Fund - Class I EUR € 136.42 - -0.39 0.00 Pictet Asset Management (Europe) SA (LUX) RAM Tactical II Asia Bond Total Return $ 148.04 - 0.04 - Regulated
FCA Recognised Hermes Global Small Cap Fund Class F Acc USD € 2.17 2.17 -0.01 0.00 representation as to their accuracy or completeness
Algebris Financial Income Fund - Class R EUR € 127.93 - -0.38 0.00 15, Avenue J.F. Kennedy L-1855 Luxembourg Superfund Green EUR SICAV € 871.15 - -10.50 0.00
Ennismore European Smlr Cos NAV £ 140.33 - -0.13 0.00 Hermes Impact Opportunities Equity Fund F $ 2.07 - -0.01 0.00 and they should not be relied upon when making an
Algebris Financial Income Fund - Class Rd EUR € 89.14 - -0.26 4.91 Tel: 0041 58 323 3000 Superfund Red EUR SICAV € 857.36 - -14.15 0.00
Ennismore European Smlr Cos NAV € 154.33 - 1.10 0.00 Hermes Impact Opportunities Equity Fund F £ 1.15 - -0.01 0.00 investment decision.
Algebris Financial Equity Fund - Class B EUR € 105.44 - -0.14 0.00 Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.19 1.19 0.00 0.00 FCA Recognised
Algebris Macro Credit Fund - Class I EUR € 108.47 - 0.23 0.00 Hermes SDG Engagement Equity Fund F $ 2.24 - -0.02 0.00 Pictet-Absl Rtn Fix Inc-HI EUR € 110.27 - 0.06 0.00 Ruffer LLP (1000)F (UK) The sale of interests in the funds listed on these pages
Algebris Macro Credit Fund - Class R EUR € 107.07 - 0.23 0.00 Hermes SDG Engagement Equity Fund F £ 1.24 - 0.00 0.00 Pictet-Asian Equities Ex Japan-I USD F $ 299.06 - -0.82 0.00 65 Gresham Street, London, EC2V 7NQ may, in certain jurisdictions, be restricted by law and
Algebris Macro Credit Fund - Class Rd EUR € 107.07 - 0.23 0.00 Hermes Unconstrained Credit Fund Class F USD Acc $ 2.19 - 0.00 0.00 Pictet-Asian Local Currency Debt-I USD F $ 175.68 - -0.85 0.00 Order Desk and Enquiries: 0345 601 9610 the funds will not necessarily be available to persons
Ennismore European Smlr Cos Hedge Fd Superfund Asset Management GmbH
Algebris Quant Arbitrage Fund - Class EB EUR € 98.58 - -0.17 0.00 Hermes US SMID Equity Fund Class F Acc £ 2.86 2.86 -0.02 0.00 New Capital UCITS Fund PLC (IRL) Pictet-Biotech-I USD F $ 836.50 - -0.61 0.00 Authorised Inv Funds in all jurisdictions in which the publication circulates.
Other International Funds www.superfund.com, +43 (1) 247 00
Hermes US SMID Equity Fund Class F Acc USD € 4.77 4.77 0.00 0.00 Leconfield House, Curzon Street, London, W1J 5JB Pictet-CHF Bonds I CHF SFr 521.49 - 0.23 0.00 Persons in any doubt should take appropriate
Authorised Corporate Director - Link Fund Solutions Other International Funds
NAV € 575.73 - -6.21 0.00 www.newcapitalfunds.com Pictet-China Index I USD $ 146.64 - -1.58 0.00 professional advice. Data collated by Morningstar. For
LF Ruffer European C Acc 624.81 - 2.90 0.19 Superfund Green Gold SICAV $ 1036.05 - -9.12 0.00 other queries contact reader.enquiries@ft.com +44
FCA Recognised Pictet-Clean Energy-I USD F $ 101.57 - -0.42 0.00
LF Ruffer European C Inc 114.94 - 0.53 0.27 (0)207 873 4211.
The Antares European Fund Limited Wealthy Nations Bond Fund - USD Inst Inc. $ 119.77 - 0.10 4.24 Pictet-Digital-I USD F $ 435.49 - 0.47 0.00
LF Ruffer European O Acc 611.85 - 2.81 0.00
Euro Value Credit Fund - EUR Inst Acc € 103.67 - 0.08 0.00 Pictet-Em Lcl Ccy Dbt-I USD F $ 184.06 - 0.51 0.00
Other International Intrinsic Value Investors (IVI) LLP (IRL)
Pictet-Emerging Europe-I EUR F € 429.89 - -1.57 0.00
LF Ruffer Equity & General C Acc 450.67 - 2.32 0.10 The fund prices published in this edition along with
AEF Ltd Usd (Est) $ 637.45 - 9.34 - Equinox Fund Mgmt (Guernsey) Limited (GSY) 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Global Value Credit Fund - USD Ord Acc. $ 195.24 - 0.06 0.00 LF Ruffer Equity & General C Inc 415.07 - 2.13 0.10 additional information are also available on the
Regulated Asia Pacific Equity Income Fund - USD Ord Inc. $ 100.71 - -0.61 4.72 Pictet-Emerging Markets-I USD F $ 640.09 - -5.69 0.00
AEF Ltd Eur (Est) € 605.45 - 8.94 0.00 FCA Recognised LF Ruffer Equity & General O Acc 441.35 - 2.25 0.00 Financial Times website, www.ft.com/funds. The
Equinox Russian Opportunities Fund Limited $ 174.82 - 11.04 0.00 China Equity Fund - USD Ord Acc. $ 152.04 - -1.57 0.00 Pictet-Emerging Markets Index-I USD F $ 290.76 - -1.59 0.00 funds published on these pages are grouped together
IVI European Fund EUR € 23.71 - 0.08 0.00 LF Ruffer Equity & General O Inc 409.49 - 2.08 0.00
Dynamic European Equity Fund - EUR Ord Inc. € 183.55 - 0.91 2.77 Pictet-Emerging Corporate Bonds I USD $ 134.76 - 0.14 0.00 by fund management company.
IVI European Fund GBP £ 28.79 - -0.17 0.16 LF Ruffer Gold C Acc 203.38 - 6.05 0.00
Global Equity Conviction Fund - USD Ord Acc. $ 134.93 - -1.00 0.00 Pictet-Emerging Markets High Dividend I USD $ 127.79 - -1.30 0.00
LF Ruffer Gold C Inc 123.09 - 3.66 0.00
Swiss Select Equity Fund - CHF Ord Acc.SFr 147.19 - -0.37 0.00 Pictet-Emerging Markets Sust Eq I USD $ 106.23 - -0.94 0.00 Prices are in pence unless otherwise indicated. The
Arisaig Partners LF Ruffer Gold O Acc 199.10 - 5.91 0.00
US Growth Fund - USD Ord Acc. $ 300.01 - -3.11 0.00 Pictet-EUR Bonds-I F € 635.99 - 2.08 0.00 change, if shown, is the change on the previously
Euronova Asset Management UK LLP (CYM) LF Ruffer Japanese C Inc 124.37 - 2.36 0.50
Other International Funds US Small Cap Growth Fund - USD Inst Acc $ 145.70 - -0.77 0.00 Pictet-EUR Corporate Bonds-I F € 221.70 - 0.26 0.00 quoted figure (not all funds update prices daily). Those
Regulated LF Ruffer Japanese C Acc 266.17 - 5.04 0.50
Arisaig Africa Consumer Fund Limited $ 11.04 - 0.03 0.00 Kames Capital ICVC (UK) Strategic Portfolio UCITS Fund - USD Inst Acc. $ 126.19 - -0.57 0.00 Pictet-EUR Government Bonds I EUR € 177.01 - 0.66 0.00 designated $ with no prefix refer to US dollars. Yield
Smaller Cos Cls One Shares € 45.10 - 0.03 0.00 LF Ruffer Pacific & Emerging Markets C Acc 381.81 - 2.45 0.86
Arisaig Asia Consumer Fund Limited $ 92.38 - -0.22 0.00 Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA All Weather Fund - EUR Inst Acc € 97.96 - 0.13 0.00 Pictet-EUR High Yield-I F € 286.16 - 0.22 0.00 percentage figures (in Tuesday to Saturday papers)
Smaller Cos Cls Two Shares € 30.24 - 0.02 0.00 LF Ruffer Pacific & Emerging Markets C Inc 106.32 - 0.69 0.90 allow for buying expenses. Prices of certain older
Arisaig Global Emerging Markets Consumer Fund $ 11.87 - -0.05 0.00 0800 358 3009 www.kamescapital.com Dynamic UK Equity Fund - GBP Inst Acc. £ 118.57 - -0.65 0.00 Pictet-EUR Short Mid-Term Bonds-I F € 137.88 - 0.06 0.00 Toscafund Asset Management LLP (UK)
Smaller Cos Cls Three Shares € 15.24 - 0.01 0.00 LF Ruffer Pacific & Emerging Markets O Acc 373.56 - 2.39 0.55 insurance linked plans might be subject to capital
Arisaig Global Emerging Markets Consumer UCITS € 13.78 - -0.05 0.00 Authorised Funds Global Alpha Fund - USD Ord Inc $ 107.79 - -0.31 1.10 Pictet-EUR Short Term HY I EUR € 129.28 - -0.01 0.00 www.toscafund.com
Smaller Cos Cls Four Shares € 19.57 - 0.01 0.00 LF Ruffer Total Return C Acc 447.00 - 1.43 1.39 gains tax on sales.
Arisaig Global Emerging Markets Consumer UCITS STG £ 15.89 - -0.19 0.00 Kames Global Equity GBP B Acc £ 2.46 - 0.00 0.68 Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 100.73 - 0.00 0.00 Authorised Funds
LF Ruffer Total Return C Inc 294.76 - 0.94 1.41
Arisaig Latin America Consumer Fund $ 27.61 - -0.18 0.00 Kames Investment Grd Glbl Bd A Inc GBP H 580.82 - -3.73 2.13 Pictet-Euroland Index IS EUR € 159.31 - 0.28 0.00
LF Ruffer Total Return O Acc 437.73 - 1.38 1.40 Aptus Global Financials B Acc £ 3.88 - -0.01 4.61 Guide to pricing of Authorised Investment Funds:
Pictet-Europe Index-I EUR F € 200.67 - 0.33 0.00
LF Ruffer Total Return O Inc 288.48 - 0.90 1.41 Aptus Global Financials B Inc £ 2.81 - -0.01 4.79 (compiled with the assistance of the IMA. The
Pictet-European Equity Selection-I EUR F € 761.96 - -2.86 0.00
Investment Management Association, 65 Kingsway,
FIL Investment Services (UK) Limited (1200)F (UK) Pictet-European Sust Eq-I EUR F € 286.03 - 0.49 0.00
London WC2B 6TD.
130, Tonbridge Rd, Tonbridge TN11 9DZ Pictet-Global Bds Fundamental I USD $ 130.43 - 0.30 0.00
Artemis Fund Managers Ltd (1200)F (UK) Tel: +44 (0)20 7831 0898.)
Callfree: Private Clients 0800 414161 Pictet-Global Bonds-I EUR € 187.42 - 0.75 0.00
57 St. James's Street, London SW1A 1LD 0800 092 2051 Toscafund Asset Management LLP
Broker Dealings: 0800 414 181 Pictet-Global Defensive Equities I USD $ 192.30 - 0.07 0.00 OEIC: Open-Ended Investment Company. Similar to a
Authorised Inv Funds www.toscafund.com
Pictet-Global Emerging Debt-I USD F $ 438.30 - 0.32 0.00 unit trust but using a company rather than a trust
Artemis Monthly Dist R Acc £ 0.94 - 0.00 4.16 OEIC Funds Tosca A USD $ 318.61 - 1.88 -
Pictet-Global Env.Opport-I EUR € 228.47 - 0.32 0.00 structure.
Artemis US Smllr Co?s I Hdg Acc £ 1.06 - -0.02 - Fidelity American Fund W-ACC-GBP £ 48.15 - -0.32 0.59 Pictet-Global Megatrend Selection-I USD F $ 313.82 - 0.63 0.00 Tosca Mid Cap GBP £ 305.85 - -5.62 -
Fidelity Cash Fund Y-ACC-GBP £ 1.01 - 0.00 0.55 Pictet-Global Sust.Credit HI EUR € 157.72 - 0.19 0.00 Tosca Opportunity B USD $ 450.84 - -8.41 - Different share classes are issued to reflect a different
FID Emerg Europe, Middle East and Africa Fund W-ACC-GBP £ 2.41 - -0.02 2.88 Pictet-Greater China-I USD F $ 648.71 - -1.52 0.00 Pegasus Fund Ltd A-1 GBP £ 73.77 - 0.59 0.00 currency, charging structure or type of holder.
Fidelity Global Enhanced Income Fund W-ACC-GBP £ 1.99 - 0.00 3.56 Northwest Investment Management (HK) Ltd Pictet-Health-I USD $ 320.50 - -2.41 0.00
Fidelity Global Focus Fund W-ACC-GBP £ 26.88 - -0.05 0.35 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9331 9220 Pictet-SmartCity-I EUR € 202.61 - -0.73 0.00 Selling price: Also called bid price. The price at which
Fidelity Global High Yield Fund Y-ACC-GBP £ 14.93 - 0.02 3.21 Kames Capital VCIC (IRL) Other International Funds Pictet-India Index I USD $ 123.05 - 0.56 0.00 units in a unit trust are sold by investors.
Fidelity Japan Fund W-ACC-GBP £ 4.07 - -0.02 0.62 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Northwest China Opps Class T $ $ 2708.35 - -15.67 0.00 Pictet-Indian Equities-I USD F $ 582.98 - -8.71 0.00 S W Mitchell Capital LLP (IRL)
Fidelity Japan Smaller Companies Fund W-ACC-GBP £ 3.36 - 0.00 0.44 FCA Recognised Northwest Feilong Class T $ $ 1821.47 - 15.49 0.00 Regulated Buying price: Also called offer price. The price at
Pictet-Japan Index-I JPY F ¥ 17473.90 - 38.85 0.00
Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.10 - 0.00 0.57 Absolute Return Bond B GBP Acc 1117.93 - -0.12 1.72 Northwest Fund Class T $ $ 2429.83 - -45.42 0.00 which units in a unit trust are bought by investors.
Pictet-Japanese Equities Opp-I JPY F ¥ 10914.57 - -13.03 0.00 SWMC European Fund B EUR € 17150.82 - 96.00 0.00
Short Dated Corporate Bond Fund Y ACC GBP £ 10.69 - -0.01 3.75 Northwest Warrant Class A $ $ 1320.19 - 27.96 0.00 Includes manager’s initial charge.
Eq Market Neutral B Acc 938.75 - -0.06 0.00 Pictet-Japanese Equity Selection-I JPY F ¥ 15645.59 - -0.90 0.00 SWMC Small Cap European Fund B EUR € 13172.04 - 1.53 0.00
Fidelity Special Situations Fund W-ACC-GBP £ 37.01 - -0.36 2.24 High Yield Global Bond A GBP Inc 518.53 - -0.54 3.35 Pictet-LATAM Lc Ccy Dbt-I USD F $ 148.29 - 0.87 0.00
Fidelity UK Growth Fund W-ACC-GBP £ 3.34 - -0.05 - Single price: Based on a mid-market valuation of the
High Yield Global Bond B GBP Inc 1099.40 - -1.11 4.01 Pictet-Multi Asset Global Opportunities-I EUR € 125.53 - -0.22 0.00
Fidelity UK Select Fund W-ACC-GBP £ 3.28 - 0.00 1.93 underlying investments. The buying and selling price
Kames Emerging Market Bond Fund - B Acc USD $ 11.26 - -0.03 0.00 Pictet-Nutrition-I EUR € 245.02 - 0.31 0.00 for shares of an OEIC and units of a single priced unit
Ashmore Investment Management Limited (LUX) Institutional OEIC Funds Kames Global Equity Income B GBP Acc 1928.43 - -13.71 0.00 Pictet-Pacific Ex Japan Index-I USD F $ 466.80 - -3.36 0.00 trust are the same.
2 rue Albert Borschette L-1246 Luxembourg Europe (ex-UK) Fund ACC-GBP £ 6.14 - 0.02 0.91 Kames Global Equity Income B GBP Inc 1455.44 - -8.32 3.19 Pictet-Premium Brands-I EUR F € 204.62 - 1.38 0.00
Kames Global Diversified Growth Fund - B Acc EUR € 11.18 - -0.05 0.00 Pictet-Russia Index I USD $ 95.25 - 0.32 0.00 Treatment of manager’s periodic capital charge:
FCA Recognised TreeTop Asset Management S.A. (LUX)
Kames Global Equity Market Neutral Fund - B Acc GBP £ 9.99 - 0.01 0.00 Pictet-Russian Equities-I USD F $ 87.64 - 0.64 0.00 The letter C denotes that the trust deducts all or part
Ashmore SICAV Emerging Market Debt Fund $ 101.00 - 0.10 5.46 Regulated
Global Sustainable Equity B Acc GBP £ 17.77 - -0.07 0.00 Pictet-Security-I USD F $ 292.59 - -1.36 0.00 of the manager’s/operator’s periodic charge from
Ashmore SICAV Emerging Market Frontier Equity Fund $ 171.36 - 0.29 0.65 TreeTop Convertible Sicav
Global Sustainable Equity C Acc GBP £ 17.94 - -0.06 0.00 Pictet-Select-Callisto I EUR € 99.95 - 0.28 0.00 capital, contact the manager/operator for full details
Ashmore SICAV Emerging Market Total Return Fund $ 87.81 - 0.14 5.08 Findlay Park Funds Plc (IRL)
International AH € 256.55 - -0.62 0.00
Kames Absolute Return Bond Global Fund - B Acc GBP £ 10.35 - 0.00 0.00 Pictet-Small Cap Europe-I EUR F € 1323.18 - 0.04 0.00 of the effect of this course of action.
Ashmore SICAV Global Small Cap Equity Fund $ 143.41 - -0.15 0.00 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900
Short Dated High Yld Bd B Acc GBP £ 10.45 - 0.00 0.00 Pictet-ST Emerg Local Currency Debt-I USD F $ 107.27 - 0.49 0.00 International BH $ 356.08 - -0.80 0.00
EM Active Equity Fund Acc USD $ 128.82 - -0.99 0.00 FCA Recognised Exit Charges: The letter E denotes that an exit charge
Short Dated High Yld Bd C Acc GBP (Hdg) £ 10.51 - -0.01 0.00 Pictet-ST.MoneyMkt-I € 138.56 - 0.00 0.00 International CH £ 106.38 - -0.29 0.00
EM Equity Fund Acc USD $ 102.63 - -0.64 0.00 American Fund USD Class $ 128.99 - -1.36 0.16 may be made when you sell units, contact the
Strategic Global Bond A GBP Inc 1142.62 - -2.35 1.36 Pictet-ST.MoneyMkt JPY I USD ¥ 100884.65 - -3.02 0.00 International DH € 212.48 - -0.53 2.86
EM Mkts Corp.Debt USD F $ 93.82 - 0.21 6.11 American Fund GBP Hedged £ 66.81 - -0.71 0.17 Oasis Crescent Management Company Ltd RobecoSAM (LUX) manager/operator for full details.
Strategic Global Bond B GBP Inc 648.17 - -2.42 2.01 Pictet-ST.MoneyMkt-ICHF SFr 120.61 - 0.01 0.00 TreeTop Global Sicav
EM Mkts Loc.Ccy Bd USD F $ 81.81 - 0.19 5.70 American Fund GBP Unhedged £ 105.33 - -1.92 0.15 Other International Funds Tel. +41 44 653 10 10 http://www.robecosam.com/
EM Short Duration Fund Acc USD $ 145.42 - 0.16 0.00 Pictet-ST.MoneyMkt-IUSD $ 143.64 - 0.01 0.00 Global Opp.AH € 123.85 - -0.87 0.00 Time: Some funds give information about the timing of
Oasis Crescent Equity Fund R 10.35 - 0.00 0.74 Regulated
Pictet-Timber-I USD F $ 167.72 - -3.18 0.00 Global Opp.B $ 130.08 - -0.72 0.00 price quotes. The time shown alongside the fund
RobecoSAM Sm.Energy/A £ 19.68 - -0.36 1.42
Pictet TR-Agora I EUR € 126.81 - 0.36 0.00 Global Opp.C £ 193.93 - -2.52 0.00 manager’s/operator’s name is the valuation point for
RobecoSAM Sm.Energy/N € 17.63 - -0.18 0.00
Link Asset Services (UK) Pictet TR-Corto Europe I EUR € 140.10 - 0.28 0.00 Sequoia Equity AH € 125.79 - -0.77 0.00 their unit trusts/OEICs, unless another time is
Foord Asset Management 65 Gresham Street, London, EC2V 7NQ Pictet TR-Divers Alpha I EUR € 107.30 - 0.13 0.00
RobecoSAM Sm.Materials/A £ 194.17 - -3.36 1.53
Sequoia Equity B $ 138.38 - -0.70 0.00 indicated by the symbol alongside the individual unit
Atlantas Sicav (LUX) Website: www.foord.com - Email: info@foord.com Oasis Global Mgmt Co (Ireland) Ltd (IRL) RobecoSAM Sm.Materials/N € 197.12 - -1.81 0.00
Sequoia Equity C £ 175.32 - -2.22 0.00
Order Desk and Enquiries: 0345 922 0044 Pictet TR-Kosmos I EUR € 109.36 - -0.05 0.00 trust/OEIC name.
Regulated Regulated RobecoSAM Sm.Materials/Na € 130.49 - -1.19 1.56
FCA Recognised - Luxembourg UCITS Authorised Inv Funds Pictet TR-Mandarin I USD $ 154.48 - -0.97 0.00
American Dynamic $ 5166.86 5166.86 88.97 0.00 RobecoSAM Gl.Small Cap Eq/A £ 121.58 - -1.98 1.32 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
Foord International Fund | R $ 39.50 - -0.10 - Oasis Crescent Global Investment Fund (Ireland) plc Pictet-US Equity Selection-I USD $ 270.20 - -1.66 0.00
American One $ 4885.98 4885.98 78.98 0.00 Investment Adviser - Morant Wright Management Limited RobecoSAM Gl.Small Cap Eq/N € 212.42 - -1.72 0.00 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Foord Global Equity Fund (Lux) | R $ 12.79 - -0.07 - Oasis Crescent Global Short Term Income Fund I - Class A Dist $ 0.98 - 0.00 2.43 Pictet-US High Yield-I USD F $ 173.10 - 0.28 0.00
Bond Global € 1534.70 1534.70 8.53 0.00 LF Morant Wright Japan A Acc 394.29 - 0.41 0.84 RobecoSAM S.HealthyLiv/B € 221.95 - -1.02 0.00 midnight. Daily dealing prices are set on the basis of
Regulated Oasis Crescent Global Equity Fund $ 30.58 - -0.23 0.59 Pictet-USA Index-I USD F $ 274.85 - -3.03 0.00 Troy Asset Mgt (1200) (UK)
Eurocroissance € 1100.20 1100.20 11.55 0.00 LF Morant Wright Japan A Inc 381.69 - 0.40 0.78 RobecoSAM S.HealthyLiv/N € 212.53 - -0.97 0.00 the valuation point, a short period of time may elapse
Oasis Crescent Variable Balanced Fund £ 9.59 - -0.12 0.11 Pictet-USD Government Bonds-I F $ 693.65 - 1.55 0.00 65 Gresham Street, London, EC2V 7NQ
Far East $ 880.53 - -3.02 0.00 Foord Global Equity Fund (Sing) | B $ 15.60 - -0.09 0.00 LF Morant Wright Japan B Acc 427.32 - 0.45 1.35 RobecoSAM S.HealthyLiv/Na £ 162.23 - -2.06 1.20 before prices become available. Historic pricing: The
OasisCresGl Income Class A $ 10.76 - 0.01 3.01 Pictet-USD Short Mid-Term Bonds-I F $ 136.99 - -0.08 0.00 Order Desk and Enquiries: 0345 608 0950
Foord International Trust (Gsy) $ 39.20 - -0.10 0.00 LF Morant Wright Japan B Inc 387.13 - 0.41 1.37 RobecoSAM S.Water/A £ 268.44 - -3.53 1.29 letter H denotes that the managers/operators will
OasisCresGl LowBal D ($) Dist $ 11.88 - -0.06 0.94 Pictet-USD Sov.ST.Mon.Mkt-I $ 108.06 - 0.01 0.00
LF Morant Wright Nippon Yield A Acc 413.99 - 0.01 2.85 RobecoSAM S.Water/N € 228.18 - -1.15 0.00 Authorised Inv Funds normally deal on the price set at the most recent
OasisCresGl Med Eq Bal A ($) Dist $ 12.61 - -0.08 0.48 Pictet-Water-I EUR F € 394.28 - 0.55 0.00
LF Morant Wright Nippon Yield A Inc 327.50 - 0.01 2.91 Authorised Corporate Director - Link Fund Solutions valuation. The prices shown are the latest available
Oasis Crescent Gbl Property Eqty $ 8.50 - -0.15 1.69 before publication and may not be the current dealing
Barclays Investment Funds (CI) Ltd (JER) LF Morant Wright Nippon Yield B Acc 437.21 - 0.02 2.84
Trojan Investment Funds levels because of an intervening portfolio revaluation
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Franklin Templeton International Services Sarl (IRL) LF Morant Wright Nippon Yield B Inc 345.98 - 0.01 2.90
Trojan Ethical O Acc 106.91 - -0.64 0.00 or a switch to a forward pricing basis. The
FCA Recognised JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Rubrics Global UCITS Funds Plc (IRL)
managers/operators must deal at a forward price on
Trojan Ethical O Inc 106.81 - -0.73 0.00
Bond Funds Other International Funds www.rubricsam.com request, and may move to forward pricing at any time.
Franklin Emerging Market Debt Opportunities Fund Plc Regulated Forward pricing: The letter F denotes that that
Sterling Bond F £ 0.49 - 0.00 2.42
Franklin Emg Mkts Debt Opp CHFSFr 16.92 - 0.31 8.94 Lloyds Investment Fund Managers Limited (1000)F (JER) Rubrics Emerging Markets Fixed Income UCITS Fund $ 139.43 - 0.19 0.00 managers/operators deal at the price to be set at the
Franklin Emg Mkts Debt Opp GBP £ 11.01 - 0.29 6.47 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Rubrics Global Credit UCITS Fund $ 16.82 - 0.01 0.00 next valuation.
Other International Funds Rubrics Global Fixed Income UCITS Fund $ 171.42 - 0.22 0.00 UBS Asset Management (UK)
Franklin Emg Mkts Debt Opp SGD S$ 23.26 - 0.43 5.00
Q Rubrics India Fixed Income UCITS Fund $ 11.54 - 0.02 0.00 5 Broadgate, London, EC2M 2QS Investors can be given no definite price in advance of
Franklin Emg Mkts Debt Opp USD $ 18.19 - 0.26 6.37 Lloyds Investment Funds Limited
CCLA Investment Management Ltd (UK)
Rubrics India Fixed Income UCITS Fund $ 100.49 - 0.18 0.00 Client Services 0800 358 3012, Client Dealing 0800 358 3012 the purchase or sale being carried out. The prices
Senator House 85 Queen Victoria Street London EC4V 4ET Euro High Income € 1.5980xd - -0.0010 2.82 www.ubs.com/retailfunds appearing in the newspaper are the most recent
Authorised Inv Funds High Income £ 0.8756 - -0.0002 3.82 provided by the managers/operators. Scheme
Authorised Inv Funds
Diversified Income 1 Units GBP Inc £ 1.62 1.62 0.01 2.43 Sterling Bond £ 1.5690xd - 0.0000 2.30 Platinum Capital Management Ltd particulars, prospectus, key features and reports: The
OEIC
GAM Odey Asset Management LLP most recent particulars and documents may be

Slater
Diversified Income 2 Units GBP Inc £ 1.56 1.56 0.00 2.46 Lloyds Money Fund Limited (CYM) Other International Funds
funds@gam.com, www.funds.gam.com Regulated UBS Global Emerging Markets Equity C Acc £ 0.87 - 0.00 1.49 obtained free of charge from fund
Diversified Income 3 Units GBP Inc £ 1.57 1.57 0.01 2.43 Sterling Class £ 52.3720 - 0.0000 -0.20 Platinum All Star Fund - A $ 131.43 - - -
Regulated UBS Global Optimal C Acc £ 1.16 - 0.00 0.89 managers/operators. * Indicates funds which do not
Lloyds Multi Strategy Fund Limited OEI Mac Inc GBP A £ 214.97 - 6.70 0.00 Platinum Global Growth UCITS Fund $ 10.89 - -0.13 0.00

Investments
LAPIS TOP 25 DIV.YLD-D £ 113.12 - -2.02 1.94
UBS UK Opportunities C Acc £ 0.86 - 0.00 3.96 price on Fridays.
OEI Mac Inc GBP B £ 134.46 - 5.90 0.00 Platinum Global Dividend UCITS Fund $ 57.86 - -0.02 0.00
Conservative Strategy £ 1.3210 - 0.0030 0.00 UBS US Equity C Acc £ 1.46 - -0.01 0.38
OEI MAC Inc USD $ 1167.61 - 36.65 0.00
Growth Strategy £ 1.9370 - 0.0030 0.00 UBS S&P 500 Index C Acc £ 1.02 - -0.02 1.43 Charges for this advertising service are based on the
Odey European Inc EUR € 491.85 - 13.44 0.00
CG Asset Management Limited (IRL) Aggressive Strategy £ 2.6300 - 0.0010 0.00 UBS Targeted Return C Acc £ 14.92 - -0.08 2.24 number of lines published and the classification of the
Odey European Inc GBP A £ 199.72 - 5.56 0.00 fund. Please contact data@ft.com or
25 Moorgate, London, EC2R 6AY Global USD Growth Strategy $ 1.6640 - -0.0040 0.00 UBS Sterling Corporate Bond Indexed C Acc £ 0.60 - 0.00 -
GYS Investment Management Ltd (GSY) Odey European Inc GBP B £ 113.22 - 3.15 0.00 call +44 (0)20 7873 3132 for further information.
Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859 Dealing Daily UBS Multi Asset Income C Inc Net £ 0.49 - 0.00 -
Regulated Odey European Inc USD $ 243.88 - 6.84 0.00
FCA Recognised UBS UK Equity Income C Inc Net £ 0.63 - 0.00 5.20
Capital Gearing Portfolio Inc £ 32786.20 32786.20 213.97 - Taurus Emerging Fund Ltd $ 126.93 129.52 1.16 0.00 Slater Investments Ltd (UK) UBS Corporate Bond UK Plus C Inc Net £ 0.53 - 0.00 -
CG Portfolio Fund Plc www.slaterinvestments.com; Tel: 0207 220 9460 UBS Global Allocation (UK) C Acc £ 0.86 - -0.01 1.91
MMIP Investment Management Limited (GSY) FCA Recognised UBS Global Enhanced Equity Income C Inc £ 0.41 - -0.01 9.37
Absolute Return Cls M Inc £ 125.95 125.95 -0.44 1.20 Odey Wealth Management (CI) Ltd (IRL)
Regulated Slater Growth 544.58 544.58 0.35 0.00 UBS US Growth C Acc £ 1.74 - -0.01 0.00
Capital Value Cls V Inc £ 163.84 163.84 -0.01 1.23 www.odey.com/prices
Dollar Fund Cls D Inc £ 170.09 170.09 -0.82 1.75 Genesis Investment Management LLP Multi-Manager Investment Programmes PCC Limited Slater Income A Inc 144.37 144.37 -2.60 0.00 UBS Emerging Markets Equity Income C Inc £ 0.53 - 0.00 3.69
FCA Recognised UBS FTSE RAFI Dev 1000 Index J Acc £ 147.18 - 0.88 2.29
Dollar Hedged GBP Inc £ 99.17 99.17 0.29 2.00 Other International Funds Slater Recovery 255.53 255.53 1.17 0.00
UK Equity Fd Cl A Series 01 £ 2753.80 2783.54 44.47 0.00 Odey Opportunity EUR I € 243.82 - -0.74 0.00 UBS MSCI World Min Vol Index J Acc £ 157.52 - 0.18 2.06
Real Return Cls A Inc £ 210.99 210.99 -1.11 2.50 Emerging Mkts NAV £ 7.21 - -0.16 0.00 Diversified Absolute Rtn Fd USD Cl AF2 $ 1585.62 - 10.13 0.00 Slater Artorius 221.39 221.39 1.61 0.27
Polar Capital Funds Plc (IRL)
Diversified Absolute Return Stlg Cell AF2 £ 1531.97 - 8.34 0.00 Regulated
Global Equity Fund A Lead Series £ 1573.77 1578.89 74.07 0.00 Automation & Artificial Intelligence CL I USD Acc $ 11.18 11.18 -0.14 0.00
Omnia Fund Ltd Asian Financials I USD $ 384.22 384.22 -2.43 0.00 WA Fixed Income Fund Plc (IRL)
Charles Schwab Worldwide Funds Plc (IRL) Biotechnology I USD $ 24.29 24.29 -0.14 0.00
Other International Funds Regulated
Regulated Emerging Market Stars I USD Acc $ 9.82 - -0.05 0.00
Estimated NAV $ 862.31 - 8.33 0.00 European Multi-Sector € 122.80 - 0.39 3.37
Schwab USD Liquid Assets Fd $ 1.00 - 0.00 1.40 Marwyn Asset Management Limited (CYM) European Ex UK Inc EUR Acc € 11.79 11.79 -0.05 0.00
Regulated Financial Opps I USD $ 13.25 - -0.07 2.38
Marwyn Value Investors £ 402.20 - 28.44 0.00 GEM Income I USD $ 12.34 - 0.01 0.00
Global Convertible I USD $ 13.46 13.46 -0.05 0.00
Chartered Asset Management Pte Ltd Global Insurance I GBP £ 7.66 - -0.12 0.28 Yapi Kredi Asset Management (TUR)
Global Technology I USD $ 50.58 - -0.90 0.00 www.yapikrediportfoy.com.tr Tel: + 90 (212) 385 48 48
Other International Funds
Healthcare Blue Chip Fund I USD Acc $ 13.29 13.29 -0.11 0.00 Other International Funds
CAM-GTF Limited $ 288804.49 288804.49 -3249.09 0.00 Milltrust International Managed Investments ICAV (IRL) Stenham Asset Management Inc
Global Investment House Healthcare Opps I USD $ 49.37 - -0.55 0.00 Eurobond Fund TRY 0.138265 - -0.000521 -
CAM GTi Limited $ 660.27 - 56.41 0.00 mimi@milltrust.com, +44(0)20 8123 8369 www.milltrust.com
Global GCC Islamic Fund $ 119.34 - -1.30 0.00 Income Opportunities B2 I GBP Acc £ 2.34 2.34 -0.02 0.00 www.stenhamassetmanagement.com Koc Affiliate and Equity Fund TRY 0.890242 - 0.751456 -
Raffles-Asia Investment Company $ 1.42 1.42 0.07 2.87 Regulated
Global GCC Large Cap Fund $ 185.32 - -1.55 0.00 Japan I JPY ¥ 2130.93 - -17.30 0.00 Other International Funds DPM Bonds and Bills Fund (FX) $ 1.038022 - 0.899236 0.00
Global Saudi Equity Fund SR 295.77 - -6.68 - MAI - Buy & Lease (Australia) A$ 102.52 - 2.25 0.00
Japan Value I JPY ¥ 111.29 111.29 -0.93 0.00 Stenham Credit Opportunities A Class USD $ 116.99 - 0.89 0.00
MAI - Buy & Lease (New Zealand)NZ$ 97.29 - 0.06 0.00
North American I USD $ 25.53 25.53 -0.23 0.00 Stenham Equity UCITS USD $ 182.35 - 0.37 0.00
British Innovation Fund £ 100.02 - 3.18 0.00
UK Absolute Equity I GBP £ 21.73 21.73 0.04 0.00 Stenham Growth USD $ 218.12 - 2.87 -
Cheyne Capital Management (UK) LLP Milltrust Global Emerging Markets Fund - Class A $ 88.38 - -0.22 0.00
Optima Fund Management UK Val Opp I GBP Acc £ 11.45 11.45 -0.02 0.00 Stenham Healthcare USD $ 217.82 - 11.40 0.00
Other International Funds HPB Assurance Ltd Other International Funds Stenham Managed Fund USD $ 120.78 - 2.28 0.00
Cheyne European Event Driven Fund (M) € 144.16 - -0.70 - Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 JENOP Global Healthcare Fund Ltd $ 17.89 - -0.01 0.00 Stenham Quadrant USD A $ 444.74 - 6.32 -
price updated (D) daily, (W) weekly, (M) monthly International Insurances OPTIKA Fund Limited - Cl A $ 204.26 - 7.46 0.00 Stenham Trading Inc USD $ 127.97 - 1.79 -
Mirabaud Asset Management (LUX)
Optima Fd NAV $ 101.18 - 0.44 0.00 Polar Capital LLP (CYM) Stenham Universal USD $ 454.93 - 6.54 -
Holiday Property Bond Ser 1 £ 0.53 - 0.01 0.00 www.mirabaud.com, marketing@mirabaud-am.com
Holiday Property Bond Ser 2 £ 0.64 - 0.00 0.00 Optima Discretionary Macro Fund Limited $ 82.67 - 0.51 0.00 Regulated Stenham Universal II USD $ 165.54 - 2.32 0.00
Conviction based investment vehicles details available here www.mirabaud-am.com Platinum Fd Ltd $ 100.04 - -0.35 0.00 European Forager A EUR € 194.35 - 6.67 0.00
Regulated
Dodge & Cox Worldwide Funds (IRL) Platinum Japan Fd Ltd $ 64.87 - 0.77 0.00
Mir. - Glb Strat. Bd I USD $ 113.81 - 0.07 0.00 Optima Partners Global Fd $ 17.44 - 0.09 0.00
6 Duke Street,St.James,London SW1Y 6BN
Mir. - EqPanEuropeSm&Mid £ 146.38 - -1.07 0.00 Optima Partners Focus Fund A $ 17.81 - 0.00 0.00 Yuki International Limited (IRL)
www.dodgeandcox.worldwide.com 020 3713 7664 Haussmann Mirabaud - UK Equity High Alpha £ 130.55 - -1.65 0.00 Optima STAR Fund (hedged) $ 100.70 - -0.09 0.00 Tel +44-20-7269-0207 www.yukifunds.com
FCA Recognised Other International Funds Private Fund Mgrs (Guernsey) Ltd (GSY)
Optima STAR Long Fund $ 148.50 - -1.61 0.00 Regulated
Dodge & Cox Worldwide Funds plc - Global Bond Fund Regulated
Haussmann Cls A $ 2952.64 - 38.31 0.00 The Optima Lloyd George Asia Fund $ 99.07 - -0.79 -
EUR Accumulating Class € 14.51 - 0.12 0.00 Monument Growth 30.07.19 £ 531.59 536.91 7.84 2.41 Yuki Mizuho Umbrella Fund
Haussmann Cls C € 2373.17 - 28.19 0.00
EUR Accumulating Class (H) € 10.62 - 0.00 0.00 Haussmann Cls D SFr 1233.19 - 14.47 0.00 Yuki Mizuho Japan Dynamic Growth ¥ 7061.00 - 7.00 0.00
Morgens Waterfall Vintiadis.co Inc Yuki Japan Low Price ¥ 39196.00 - 133.00 0.00
EUR Distributing Class € 11.96 - 0.09 4.14
Other International Funds Yuki Japan Value Select ¥ 14283.00 - 5.00 0.00
EUR Distributing Class (H) € 8.74 - 0.00 4.35
GBP Distributing Class £ 13.29 - 0.00 3.72 Phaeton Intl (BVI) Ltd (Est) $ 563.77 - 14.22 0.00 Oryx International Growth Fund Ltd Prusik Investment Management LLP (IRL) Yuki Asia Umbrella Fund
GBP Distributing Class (H) £ 9.15 - 0.00 4.38 Other International Funds Enquiries - 0207 493 1331 Yuki Japan Rebounding Growth Fund JPY Class ¥ 29953.00 - 129.00 0.00
USD Accumulating Class $ 11.59 - 0.01 0.00 NAV (Fully Diluted) £ 9.10 - -0.52 0.00 Regulated Yuki Japan Rebounding Growth Fund USD Hedged Class $ 1211.47 - 5.44 0.00
Dodge & Cox Worldwide Funds plc-Global Stock Fund Prusik Asian Equity Income B Dist $ 194.26 - -2.60 4.57
USD Accumulating Share Class $ 21.42 - -0.19 0.00 Prusik Asia A $ 259.88 - -3.17 0.00
Friday 2 August 2019 ★ FINANCIAL TIMES 19

MARKETS & INVESTING

Equities. Stimulus plans Commodities

Record gold
Banks fear being big losers as buying spree
in scramble
ECB easy money flows again to diversify
reserves
Excess cash parked
at the ECB has soared
HARRY DEMPSEY
Excess liquidity Deposit rate
(€tn) (%) Central banks purchased a record
$15.7bn of gold in the first six months of
2.0 0 the year in an effort to diversify their
reserves away from the US dollar as glo-
bal trade tension continues to simmer.
1.5 -0.1 Data released by the World Gold
Council yesterday showed central
banks, led by Poland, China and Russia,
1.0 -0.2 bought 374 tonnes of gold — the largest
acquisition of the precious metal on
record by public institutions in the first
0.5 -0.3 half of a year. Central banks accounted
for nearly one-sixth of total gold
demand in the period.
0 -0.4 The pattern advances on last year’s
2014 16 18 19 activity in which central banks bought
Banks have lagged up more gold than at any time since the
end of the gold standard — under which
behind in Europe’s stock rally a country could link the value of its cur-
Indices rebased rency to the precious metal — in 1971.
Stoxx Europe 50 The shift in attitude towards gold
Stoxx Europe Banks since the financial crisis was highlighted
120 by a European Central Bank decision
last week to cease an agreement to limit
115
sales of gold, as the region’s institutions
are no longer selling it in large volumes
and are instead now net purchasers.
110 Overall, year-on-year demand for
bullion rose 8 per cent to 1,123 tonnes in
105 the second quarter, lifted by central
bank buying and investors piling into
gold-backed exchange traded funds.
100 Dovish comments from central

Financials are braced for the
impact of squeezed margins
due to monetary policy shift
TOMMY STUBBINGTON
Investors have spent the past six weeks
gearing up for Mario Draghi’s last stand.
Since the European Central Bank presi-
dent hinted in a speech in mid-June that
he plans to end his tenure with a pack-
age of fresh stimulus measures, markets
have been in party mode with eurozone
stocks and bonds chalking up big gains.
One sector, however, has been notably
absent from the festivities: the region’s
banks.
Lurking behind the market euphoria
over the prospect of Mr Draghi’s parting
gift is a concern that ECB easing is slowly
strangling eurozone lenders.
While government bond yields have
hit record lows and the Stoxx Europe
index has rallied 15 per cent this year,
the financials sub-index of stocks has
fallen slightly.
Sub-zero rates have been widely
blamed for exacerbating the recent
woes at Deutsche Bank, which has
embarked on 18,000 job cuts as part of a
turnround plan. ING chief executive
Ralph Hamers lashed out against the
ECB this week, saying it is “not the
moment” for further easing, which
would hurt consumer confidence.
That, in turn, has prompted a broader
worry — that, by hobbling the banking
sector, the ECB might blunt the overall
benefit to the economy of rate cuts.
“If you want monetary policy to work,
you need a healthy banking sector,” said
Salman Ahmed, chief investment strat-
egist at Lombard Odier Investment
Management. “If you pile too much bur-
den on to the banks, more rate cuts
become counterproductive.”
Such concerns look set to rise with Mr
Draghi widely expected in September to
further cut the central bank’s deposit
rate as well as possibly reviving its bond-
buying programme.
Negative interest rates function like a
tax on banks. Eurozone banks currently
park more than €1.7tn of excess liquid-
ity at the central bank.
With the ECB’s deposit rate currently
at minus 0.4 per cent, the total cost is
around €7bn a year. At the same time, it
is tough for lenders to pass this burden
on to their customers in the real world —
no one wants to charge individual cus-
tomers for their deposits as UBS is plan-
ning to do with some very wealthy Swiss
clients. The result is a painful squeeze
on margins.
The ECB has a plan to sugar the pill of
even lower rates, by exempting part of
these excess reserves from the punitive
charge — a so-called tiering of negative
interest rates.
Such plans would bring relief to the
big banks in the eurozone’s core coun-
tries, which account for the lion’s share
of the excess reserves at the ECB — Ger-
many, France, the Netherlands, Bel-
gium, Austria and Luxembourg make
up more than 80 per cent, according to
Apolline Menut, eurozone economist at
Axa Investment Managers.
The concentration of reserves in just a
few countries’ banking systems means
the benefits from tiering would also be
concentrated. Regional banks in Italy
and Spain, some of which are more reli-
ant on retail deposits than the big multi-
nationals, would see little relief.
For the banking system as a whole,
the precise design of the tiering system
is a thorny issue.
“There is a fine balance to strike:
exempting too many deposits from the
negative deposit charge could create a
tightening in financial conditions simi-
lar to a rate hike,” said Ms Menut. “And
exempting only a small portion of
deposits from the deposit charge basi-
cally limits the purpose of tiering.”
The ECB itself has been keen to point
out that the damage done to bank prof-
its by negative rates has been offset by
other, more positive, effects of its stimu-
lus efforts. The central bank’s vice-pres-
ident, Luis de Guindos, said last month
that the overall effect of its monetary
policy on banking sector profitability
has been “broadly neutral”.
“Nevertheless, the overall effects of
negative rates on the banking sector
need to be carefully monitored, particu-
larly because the balance of their effects
will depend on how long rates remain in
negative territory,” Mr de Guindos
95
Jan 2019 Jul
Sources: Refinitiv; ECB
The European added. This final point is perhaps of
Central Bank greatest concern to investors in Euro-
has been pean banking stocks. Talk of tiering
criticised by the seems the ultimate confirmation that
region’s banks deeply sub-zero rates are here to stay.
over monetary “The thought that is troubling inves-
easing plans tors is the possibility that rates will be
Krisztian Bocsi/Bloomberg
even lower for longer and fall back here
periodically in the future, and that
sounds like a structural squeeze on the
net interest margins,” said Richard
Barwell, head of macro research at BNP
Paribas Asset Management.
There are other ways Mr Draghi could
seek to ease the pain. The ECB has so far
stopped short of buying bank debt
under its quantitative easing pro-
gramme, in part because of a potential
conflict of interest arising from its role
as a financial sector regulator.
A new round of QE may be forced to
dispense with such scruples, said Jeffer-
ies economist Marchel Alexandrovich.
In addition to lowering banks’ borrow-
ing costs, this move would allow the ECB
‘If the next to beef up its bond-buying at a time
whensovereigndebtisinshortsupply.“It
move in kills two birds with one stone,” he said.
rates is For now, there is little sign of the
gloom lifting from the eurozone’s bank-
down, it’s ing sector. On a recent trip to the US, Mr
difficult to Alexandrovich found fund managers
reluctant to touch the sector.
build an “If the next move in interest rates is
optimistic going to be down, it’s difficult to build an
optimistic case for the banks,” he added.
case for “For investors who have the choice of
the banks’ going elsewhere, it’s a difficult sell.”
‘June was a big month
for gold, underpinned
by extremely strong
central bank buying’
banks, geopolitical instability and rising
gold prices encouraged investors to top
up, with ETF gold holdings up 67.2
tonnes in the second quarter to a six-
year peak of 2,548 tonnes.
Demand was further supported by a
recovery in India’s jewellery market in
Q2, with year-on-year demand rising 12
per cent to 168.6 tonnes. However, as the
June price rose above $1,400 a troy
ounce for the first time in six years,
demand for gold in the jewellery and
retail investment markets softened.
“June was a big month for gold,” said
Alistair Hewitt, head of market intelli-
gence at the WGC. “While the Fed’s
dovish turn was the key driver for this, it
also builds on a strong first half of the
year, which saw gold demand hit a
three-year high, underpinned by
extremely strong central bank buying.”
The US Federal Reserve announced
on Wednesday its first interest rate cut
for more than a decade.
UK-listed funds accounted for three-
quarters of exchange traded gold prod-
ucts bought by value. This was driven by
a desire to hedge against uncertainty
FastFT over the outcome of the UK’s Conserva-
Our global tive party leadership election, concern
about a disorderly exit from the EU and
team gives you
market-moving a sharp plunge in the value of the pound.
news and views, The WGC expects looser monetary
policy and geopolitical uncertainty to
24 hours a day
ft.com/fastft keep pressure on central banks to build
gold reserves.

Equities Asset management

Mood of caution as US companies take
foot off the pedal on stock buybacks
RICHARD HENDERSON — NEW YORK
The breakneck growth in corporate
share buybacks that has helped propel
the stock market to record highs is
starting to cool at a pivotal time for US
equities, as concerns around a slowing
global economy, trade tension and a
dovish central bank weigh heavily.
Buybacks are set to hit a total of $940bn
this year, according to Goldman Sachs
estimates, up 13 per cent on last year’s
total but a sharp deceleration from the
54 per cent growth seen in 2017-18.
Last year’s spurt was driven by a cut to
the corporate tax rate from 35 per cent
to 21 per cent, which prompted US com-
panies to spend $833bn on their own
stock.
Bank of America analysts have also
noted a slowdown. Based on an analysis
of its own corporate clients’ buying
trends, the bank said these companies
were spending 12 per cent more on buy-
backs this year, a fraction of last year’s
growth.
“Heading into the peak of earnings
season, corporate buybacks picked up
slightly last week,” Jill Hall, equity and
quant strategist for Bank of America,
said in a research note. “But the growth
rate for cumulative buybacks year to
date continued to slow to 12 per cent
year-over-year. We have expected the
pace of buybacks to slow as we move
into 2020.”
The slowdown in buyback growth
sounds a cautious note for equity inves-
tors in the midst of second-quarter
earnings.
Stock repurchases reduce the amount
of shares that trade on the stock
exchange, improving key metrics like
Traders monitor news of the Fed’s
cut in interest rates on Wednesday
earnings per share, which typically
boosts a company’s share price. For the
past decade, buybacks have outranked
dividends as the favoured mechanism
for returning cash to shareholders.
The deceleration adds another layer
of uncertainty for equity investors
alongside the spectre of slowing growth,
trade tension and the Federal Reserve’s
ambiguous stance on interest rates.
On Wednesday, the Fed cut the rate by
0.25 percentage points — its first reduc-
tion since the financial crisis of 2008 —
sending the S&P 500 1.1 per cent lower
by the end of the trading day.
Apple, the biggest buyer of its own
stock, highlighted this week the benefits
of buybacks — its quarterly results
showed a near 13 per cent year-on-year
slide in net income but, thanks to the
reduction in its share count, its earnings
per share were down just 7 per cent.
“The trend we’re seeing today is
nowhere near as strong as 2018 but
companies are still growing earnings
and they are still going to give that
money to shareholders through buy-
backs and dividends,” said Patrick
Palfrey, senior equity strategist for
Credit Suisse.
Citadel hires bond and currency traders
to profit from U-turn by policymakers
LAURENCE FLETCHER
Hedge fund Citadel has boosted its
team specialising in bonds and curren-
cies with three new fund managers as it
looks to capitalise on the market
opportunities thrown up by dramatic
central bank shifts towards looser
monetary policy.
Jonathan Bayliss, former head of macro
rates and a partner at Goldman Sachs
Asset Management who has also
worked at hedge fund Tudor, has been
hired as a senior fund manager in Lon-
don, according to people familiar with
the firm’s plans.
Mr Bayliss, who will be part of the
macro strategies team, is set to join the
firm later this year.
The hedge fund, which was founded
by trader Ken Griffin and which runs
$32bn in assets, has also hired Vishnu
Kurella as a senior fund manager in New
York. Mr Kurella, who specialises in
cross asset volatility and who previously
worked at hedge fund Caxton, is set to
join next month.
Eric Rains, who previously worked at
hedge fund BlueMountain, will join as a
fund manager in Mr Kurella’s team.
Citadel declined to comment. The
hires reflect a significant pick-up in
opportunities for macro hedge funds,
which have chalked up their best half-
year of returns since 2013 at 5.01 per
cent, according to data from HFR.
Macro funds, made famous by the
likes of George Soros and Paul Tudor
Jones, bet on moves in global bond, cur-
rency and stock markets.
Such funds have struggled in recent
‘Every central bank is live
right now. The opportunity
set is as full and robust as
it has been in many years’
years amid huge stimulus from central
banks and ultra-low interest rates that
have proved hard to profit from.
However, many are capitalising on
the large fall in bond yields this year —
the yield on the 10-year US Treasury has
fallen from 2.69 per cent to 2.05 per cent
and the 10-year German Bund yield has
dropped from 0.25 per cent to minus
0.42 per cent — as central banks have
performed a U-turn from tightening to
loosening monetary policy. That has
proved a profitable trade for funds bet-
ting on a return to lower borrowing
costs.
“Every central bank is live right now,”
said one macro hedge fund executive.
“The opportunity set is as full and
robust as it has been in many years.”
Among those making money from the
bond market rally is Caxton Associates,
whose main fund is up more than 13 per
cent, while Brevan Howard has gained
around 10 per cent, one of its best half-
year of performances since the financial
crisis.
Profits on macro trades have helped
Citadel’s flagship Wellington fund gain
about 15 per cent so far this year, said a
person who had seen the numbers, hav-
ing risen 9.1 per cent last year.
The hires also come as some rival
firms cut back on their macro trading
amid lacklustre performance.
Element Capital recently cut around
one-tenth of its staff and closed its port-
folio manager programme.
Citadel’s new recruits will be part of a
team led by Colin Lancaster, who joined
the firm at the start of last year from Bal-
yasny to build out a macro trading team.
20 ★ Friday 2 August 2019

The day in the markets Investors rediscover

What you need to know
attractions of Russian
3 US Treasuries jump higher following
bonds despite sanctions
Treasuries rally after weak US manufacturing data
release of weak US manufacturing data
3 Pound dips below $1.21 ahead of Bank 10-year Treasury yields (%)
of England interest rate decision
3 Weak results from Shell weigh on FTSE
100 index
2.10
Giancarlo Perasso
US Treasuries rallied sharply, Wall Street
stocks rebounded and the dollar briefly
2.05 Market Insight
strengthened the day after Jay Powell,
the Federal Reserve chair, cut interest

B
rates by 25 basis points but described the iting sanctions were imposed — has allowed Russia to record a strong ble has also helped. It is difficult to say
2.0
move as just a “mid-cycle adjustment”. on Russia about five years ago current account surplus. that sanctions have been a significant
Stephen Innes, managing partner at following its annexation of Russian authorities succeeded in sta- factor contributing to Russia’s slow
VM Markets, said the market perception Crimea with further penalties bilising the economy while rebuilding growth trend since several other drivers
of a “one and done rate cut” on added in subsequent years. foreign exchange reserves and lowering affected the economy more deeply.
Wednesday had led to a renewed bout of 1.95 But if the punitive measures imposed debt to GDP. The clearest indication that sanctions
dollar strength before the greenback Tuesday Wednesday Thursday by the US and the EU were designed to It is not clear what impact sanctions are no longer considered a significant
gave back gains following the release of
Source: Bloomberg
inflict economic pain, deter further have had on the real economy. On the factor is the trend in the share of OFZ —
weak US manufacturing data. aggressive military action in Ukraine or one hand, productivity is growing at 2.5 federal rouble-denominated bonds —
The dollar index, which measures the elsewhere, prevent interference in dem- per cent and accelerating. On the other, held by foreigners. There was a big drop
greenback against a baskets of peers, ocratic elections, reduce intelligence GDP growth was about 2 per cent in in this share from the sanctions
rose 1 per cent to 98.61, before retreating the forecast miss. The yields on the 10- fallen sharply following Mr Powell’s rate gathering capabilities in the west and 2017-18, similar to the average rate of imposed in the spring of 2018 but for-
almost 6 per cent by the afternoon in year benchmark sank 14 basis points to cut announcement. punish Russia for using banned chemi- growth in 2012-14 — a disappointing eign investors have returned to the local
New York. 1.89 per cent and those on two-year The Dow Jones Industrial Average cal weapons in a foreign country, the outcome since the economy did not market more recently and the propor-
Another currency that weakened was notes fell 15bp to 1.74 per cent. advanced more than 1 per cent, helped by results have at best been mixed. rebound strongly following the reces- tion of OFZ held by foreigners has crept
the UK pound, which fell 0.6 per cent to Commenting on the rate cut and weak a strong performance by technology The true outcome of international back up to about one-third.
sanctions on the country’s economy is Moreover, from the perspective of
$1.2085 after the Bank of England cut its
UK growth forecasts. That was sterling’s
manufacturing data, Silvia Dall’Angelo,
senior economist at Hermes Investment
groups such as Microsoft and IBM, which
were up more than 3 per cent and 4 per difficult to ascertain as several other fac-
Russians remember those holding dollar-denominated Rus-
lowest level since January 2017. Management, said: “Deteriorating activity cent. The tech-heavy Nasdaq Composite tors are in play. the humiliation of its 1998 sian bonds, the country appears to be a
While the population’s living stand- remarkably safe credit. Public external
In the US, numbers from the
manufacturing sector missed economists’
in the cyclically sensitive manufacturing
sector, reflecting negative developments
index rose 1.5 per cent while the S&P 500
firmed 1 per cent. ards and the foreign investment envi-
default and appear debt is about 10 per cent of the current
forecasts. The ISM purchasing managers’ in external demand and trade policy Unexpectedly weak earnings results ronment have deteriorated, the broader determined for no repeat foreign exchange reserves and Russia is
index from the sector came in at 51.2, uncertainty, is cause for concern, and from oil major Royal Dutch Shell weighed effect of the sanctions may have been a net international creditor. In addition,
missing expectations for a reading of 52. justifies a pre-emptive [rate] move.” on London’s FTSE 100 index, which fell stymied as Russia has simultaneously among emerging market issuers, Russia
US Treasuries jumped higher following Wall Street stocks rebounded, having 0.2 per cent. Nikou Asgari achieved macroeconomic stability and a sion in 2015 — and the economy and Botswana have the lowest debt-to-
stronger external financial position. remains highly dependent on oil. GDP ratios at above 13 per cent.
The annexation of Crimea and the A stronger rebound did not material- Combined with its strong ability to
Markets update secession in Ukraine’s Donbass region ise due to the very strict monetary pay, Russians — from President
took place shortly before oil prices tum- stance and some fiscal retrenchment Vladimir Putin to the common citizen —
bled from $120 per barrel to about $50 pursued by the Russian authorities, as possess an equally strong willingness to
per barrel. The Russian economy was well as longstanding structural features pay. They remember the humiliation of
US Eurozone Japan UK China Brazil therefore hit by the double shock of of the economy including a negative its 1998 default and appear determined
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa sanctions and sharply declining oil. population trend, a weak investment not to repeat this in the future.
Level 3009.36 1526.84 21540.99 7584.87 2908.77 103604.23 It tried to control the subsequent cur- climate and the government’s tight con- Should more damaging sanctions —
% change on day 0.97 0.46 0.09 -0.03 -0.81 1.76 rency depreciation by raising interest trol of the economy. Apart from the such as those imposed on South Africa
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ rates and using foreign exchange recent pension reform that saw the during apartheid — be imposed, it
Level 98.833 1.106 108.185 1.215 6.902 3.827 reserves. Ultimately, the Central Bank retirement age increase, structural would be a different story.
% change on day 0.322 -0.629 -0.359 -0.816 0.240 1.716 of Russia switched to a regime of pure reform remains basically absent. The holders of rouble-denominated
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond inflation targeting and a free-floating The only true structural reform, para- bonds would probably be affected the
Yield 1.963 -0.453 -0.136 0.592 3.152 7.263 exchange rate. It started cutting the pol- doxically, has been the imposition of most because of Russia’s weakening cur-
Basis point change on day -6.860 -1.200 2.310 -1.800 -0.800 0.000 icy rate once inflation started to decline. Russian sanctions on EU agricultural rency but holders of foreign currency-
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX) Meanwhile, the Ministry of Finance goods, which contributed to an denominated debt would likely be
was starting to adopt a prudent stance. improvement in the domestic agricul- repaid in full.
Level 346.90 63.33 56.69 1427.55 16.48 2813.70
The combination of orthodox mone- tural sector to the point where the coun-
% change on day 0.37 -1.55 -2.17 0.12 0.12 -0.25
Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon.
tary policy, prudent fiscal policy — and a try is a leading exporter of many agri- Giancarlo Perasso is the lead economist of
bit of luck in the form of higher oil prices cultural commodities. The weaker rou- the CEEMA region at PGIM Fixed Income
Main equity markets
S&P 500 index Eurofirst 300 index FTSE 100 index
3040 1560 8000

1520 7680
2880
1480 7360

| | | | | | | | |
2720 | | | | | | | | | | | | | | | | | | | |
1440 | | | | | | | | | | | | | | | | | | | | 7040 | | | | | | | | | | |

Jun 2019 Aug Jun 2019 Aug Jun 2019 Aug

Biggest movers
% US Eurozone UK
Corteva 11.07 Societe Generale 5.83 British American Tobacco 6.89
Kellogg 9.59 Deutsche Boerse 5.30 London Stock Exchange 6.52
Ups

Vertex Pharmaceuticals 8.40 Vopak 3.63 Intertek 4.45

Cf Industries Holdings 8.03 Philips 2.74 Smith & Nephew 3.52
Nektar Therapeutics 7.06 Legrand 2.57 Standard Chartered 3.31
%
Abiomed -26.16 Evonik Industries -5.05 Mondi -5.35
Concho Resources -24.07 Royal Dutch Shell -4.90 Royal Dutch Shell -5.01
Downs

Prudential Fin -8.71 Hugo Boss -4.55 Royal Dutch Shell -4.93
Diamondback Energy -7.43 Tenaris -4.08 Glencore -4.50
Huntington Ingalls Industries -7.30 Siemens -4.03 Anglo American -4.27
Prices taken at 17:00 GMT Based on the constituents of the FTSE Eurofirst 300 Eurozone
All data provided by Morningstar unless otherwise noted.

Wall Street Eurozone London

Kellogg rallied on better than expected Zalando, Europe’s largest online fashion Disappointing results from Royal Dutch
second-quarter sales and operating retailer, jumped to a one-year high after Shell meant sterling’s continued slide was
profit, which was helped by lower costs. raising earnings targets. not enough to lift the FTSE 100 index.
Growth from snacks and frozen foods An acceleration in site visits, customer Lower production and weak refining
countered a continuing slowdown of the sign-ups and order numbers improved margins resulted in Shell posting a
cereals business while fewer promotions the group’s cost ratios. sharper than expected 26 per cent drop
offset falling volumes in North America. Hugo Boss was under pressure after in second-quarter clean net income.
Management left 2019 guidance posting 2 per cent quarterly like-for-like British American Tobacco led the FTSE
unchanged but improved visibility meant revenue growth, below the 3.5 per cent 100 gainers after reiterating full-year
that it was more confident in the target. analysts expected, and trimming guidance alongside stronger than
Fertiliser maker CF Industries led the full-year guidance. The Americas were its expected interim sales and profit.
S&P 500 gainers on forecast-beating problem market, particularly through London Stock Exchange hit a record
interim earnings, in spite of bad weather wholesalers. high after formally announcing its $27bn
delaying the US spring planting season. AMS led a sell-off among European purchase of financial data business
CF offered a bullish outlook, saying chip stocks after US peers Qualcomm and Refinitiv.
global demand would outstrip production Lam Research both posted weaker than The main new positive was LSE’s
for the next few years expected results. guidance for a more than 30 per cent
Abiomed, the artificial heart maker, But Infineon beat the trend on better boost to earnings per share in the first
tumbled after reporting slowing sales than expected earnings, with the full year, post-close.
growth and cutting full-year guidance. German chipmaker’s automotive division Capita hit its highest level in nearly a
Investors had been expecting better showing a surprise return to quarter-on- year after its interim results came with a
from Abiomed after the Food and Drug quarter growth. “It appears that the more optimistic than expected outlook,
Authority said in May that its Impella RP company will weather the cyclical which helped support confidence in the
heart pump was safe and effective. downtown successfully,” said Bernstein outsourcer’s potential turnround.
Fitbit hit a record low. Slow growth of Research. Halfords slipped after Citigroup
its services business and disappointing Glanbia slid for a second day in the predicted the retailer’s dividend would
sales of the recently launched Versa Lite wake of Wednesday’s profit warning from have to be sacrificed to fund store refits.
smartwatch led the fitness band maker to the diet supplements maker. Goodbody Staffline rose on stakebuilding by a
warn of a full-year revenue shortfall. Stockbrokers said Glanbia remained Singapore-based peer.
Clovis Oncology slid after posting a dependent on a second-half rebound in HRnetGroup became Staffline’s biggest
wider than expected quarterly loss, which growth, which looked a stretch. shareholder, having built a 24.89 per cent
heightened cash burn fears. Bryce Elder Bryce Elder holding in less than a month. Bryce Elder