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WEDNESDAY 16 OCTOBER 2019 WORLD BUSINESS NEWSPAPER EUROPE

Wirecard: the suspicions undermining Taken for a ride

a German success story — FT INVESTIGATION, PAGE 7
Uber tax case puts digital platforms
in the dock — IZABELLA KAMINSKA, PAGE 9

Empty zone Briefing

Russians back i BlackRock assets swell to almost $7tn
The world’s biggest fund manager has achieved a
Syria advance record profit margin, as lower costs and new client
money boosted its assets. The New York group
attracted third-quarter inflows of $84bn.— PAGE 11
Russian and Syrian flags fly from mili-
tary vehicles arriving yesterday at what i Brussels and UK in last-gasp Brexit talks
appeared to be an abandoned outpost Negotiators were last night locked in negotiations to
where US forces had been stationed just broker a deal as UK premier Boris Johnson sought
days ago in Manbij, Syria. political backing for a plan that imposes EU customs
Moscow said Russian soldiers had checks on goods entering Northern Ireland.— PAGE 4
been deployed to the north-eastern
town — on the front line between Syria i Star UK stockpicker’s empire implodes
and Turkey — to protect Kurdish fight- Neil Woodford, the highest
ers from an “unacceptable” Turkish profile City fund manager, has
incursion. The Kurds were, in effect, been fired from his flagship
abandoned by their US backers last fund and walked away from his
week when President Donald Trump two other investment vehicles.
pulled American forces from the area, — ANALYSIS, PAGE 15; LEX, PAGE 10
allowing Turkish troops to move in.
Kurdish forces struck a deal with Syria i ‘Bond king’ Gross in slow growth alert
two days ago to avert a Turkish assault. Pimco founder Bill Gross has warned that in a world
Report page 2 where there are trillions of dollars in debt offering
Notebook page 8 negative yields, investors should be holding stocks
Reuters/Omar Sanadiki
that promise secure dividend payouts.— PAGE 19

i UK colleges buck downward MBA trend

IMF slashes global growth forecast

Global applications have fallen 3.1 per cent in the
past year but UK schools saw an upturn, suggesting
Brexit turmoil and a hostile immigration regime
have failed to deter prospective students.— PAGE 3

after trade war batters confidence

i India eases Kashmir mobile phone curbs
New Delhi has lifted restrictions on 4m connections
that were blocked two months ago when it revoked
the Muslim-majority area’s autonomy. The internet
and 2.6m pre-paid phones are still blocked.— PAGE 4

i Empty stadium highlights foul Korea ties

3 Slowest rate since financial crisis 3 Pointed criticism of US 3 Fund urges end to hostility
CHRIS GILES — WASHINGTON
The IMF has warned that global growth
will fall this year to its slowest rate since
the financial crisis, with “precarious”
economic conditions created by the US-
China trade war.
Retaliatory tariffs have chilled busi-
ness confidence and investment, leav-
ing global trade in goods almost stag-
nant and forcing central banks to cut
interest rates to shore up growth, the
fund said yesterday.
In pointed comments directed at
President Donald Trump’s US adminis-
tration, it added that there was a press-
ing need to cease hostilities and restore
confidence to the global outlook.
“With central banks having to spend
limited ammunition to offset policy
mistakes, they may have little left when
the economy is in a tougher spot,” Gita
Gopinath, the fund’s chief economist,
wrote in its twice-yearly World Eco-
nomic Outlook.
“As policy priorities go, undoing the
trade barriers put in place with durable
agreements and reining in geopolitical
tensions top the list,” she added. “Such
actions can significantly boost confi-
dence, rejuvenate investment, halt the
slide in trade and manufacturing and
raise world growth.”
The world economy will grow only
3 per cent this year, down from 3.8 per
cent as recently as 2017 and 0.3 percent-
age points below its equivalent forecast
six months ago, according to IMF esti-
mates. That is the slowest rate of expan-
sion since the global recession of 2009.
A goalless World Cup football qualifier has been
played out in an empty Kim Il Sung Stadium in
Pyongyang, highlighting the worsening relations
The trade wars started in early 2018 fund predicted. The Chinese economy, between the two neighbours.— PAGE 4
by the US will leave global output 0.8 per now the world’s largest, will slow gradu-
cent lower in 2020 than it could have ally from its 2019 growth rate of 6.1 per
been had more internationalist policies cent, reaching 5.5 per cent by 2024. Datawatch
been followed, the IMF said. If central The fund expects a further slowdown
banks had not acted quickly to loosen in the US from 2.4 per cent this year to
monetary policy, output would have The world 2.1 per cent in the election year of 2020 Skills audit Finland is playing
been a further 0.5 per cent weaker. economy will — well below Mr Trump’s promise to % of upper secondary pupils in host to European
The IMF predicted that the global grow only keep expansion above 3 per cent a year. vocational education programmes Vocational Skills
Czech Rep Week, reflecting
economy would improve next year, 3 per cent this Given the weakness of the German
growing at a rate of 3.4 per cent, but that year, down from economy, the eurozone is expected to Finland the high take-up
Netherlands of vocational
forecast is entirely dependent on recov- 3.8 per cent as expand only 1.2 per cent this year, rising Italy education there.
eries in highly stressed economies such recently as 2017, slightly to 1.4 per cent in 2020. Poland Ireland has the
as Turkey, Argentina and Iran and the fund says The forecast downgrades “largely ref- UK
Germany lowest share of
improvements in global weak spots lect the fact that tariffs have risen and Denmark enrolled pupils,
such as Mexico, Brazil and Russia. are costing the global economy”. Most of Spain with only 10 per
Greece
The global “big four” economies of the downturn has come in manufactur- Ireland cent, compared
China, the US, the eurozone and Japan ing and global trade, while services and 0 20 40 60 80 with a 48 per cent
will have no improvement in their consumer confidence have held up. Source: Eurostat, 2017 EU average
growth rates over the next five years, the Martin Wolf page 9

JPMorgan holds on to Wall St top spot

as Goldman counts cost of WeWork
LAURA NOONAN — NEW YORK lunchtime in New York. “JPMorgan is volumes. Mr Dimon said the results
best in class of global banks and it shows demonstrated “the resilience of our
Record investment banking fees
this quarter,” said Mike Mayo, a Wells business model despite a more challeng-
helped JPMorgan Chase retain its Wall
Fargo analyst. ing interest rate backdrop”.
Street crown yesterday, while rival
The results included the best third At Goldman, third-quarter net
Goldman Sachs’ profits dropped 27 per
Catalan sentences add cent following losses on tech invest-
quarter ever for JPMorgan’s investment income of $1.8bn was dragged lower by
twist to Spanish election banking division, which handled the $80m of losses on the bank’s proprie-
ments such as WeWork and Uber.
catastrophic attempt to float WeWork, tary stake in WeWork and $267m of pro-
Analysis i PAGE 3; Comment i PAGE 8 JPMorgan, the biggest US bank, and and several other listings that plunged visions against stakes it holds in public
trading powerhouse Goldman book- in value after they begun trading. companies such as Uber and Avantor.
ended a bumper earnings day for lend- Jamie Dimon, JPMorgan’s chief execu- Goldman’s investment banking fees
Austria €3.80 North Macedonia Den220 ers that included lacklustre third- tive and chairman, repeatedly declined were down 15 per cent year on year to
Bahrain
Belgium
Din1.8
€3.80
Malta
Morocco
€3.60
Dh45
quarter results from Citigroup and to comment on the bank’s relationship $1.69bn, in contrast to JPMorgan’s 8 per
Bulgaria Lev7.50 Netherlands €3.80 Wells Fargo. with WeWork, but Jenn Piepszak, cent rise and Citigroup’s 4 per cent rise.
Croatia Kn29 Norway NKr35
Cyprus €3.60 Oman OR1.60 JPMorgan was the standout per- finance chief, said the financial impact The bank’s stock fell up to 3.3 per cent
Czech Rep
Denmark
Kc105
DKr37
Pakistan
Poland
Rupee350
Zl 20
former of the four big banks, with net of the group’s situation was “not mate- in early trade. David Solomon, chief
Egypt E£42 Portugal €3.60 income rising 8 per cent to $9.1bn on rial” and “within our risk appetite”. executive, said it would take time to
Finland €4.50 Qatar QR15
France €3.80 Romania Ron17 revenues up 8 per cent to $29.3bn in the Other parts of the bank also per- reap rewards from investments such as
Germany
Gibraltar
€3.80
£2.70
Russia
Serbia
€5.00
NewD420
three months to end of September. formed strongly, including a 25 per cent online bank Marcus. “I do believe, over
Greece €3.60 Slovak Rep €3.60 Both numbers beat analyst expecta- increase in revenues from fixed income time, markets will reward us,” he said.
Hungary Ft1200 Slovenia €3.50
India Rup220 Spain €3.60 tions and JPMorgan was rewarded with trading revenues against a year ago, and Lex page 10
Italy
Latvia
€3.60
€6.99
Sweden
Switzerland
SKr39
SFr6.00
a 4 per cent rise in its share price by a 10 per cent rise in credit card sales Consumers lend a hand page 14
Lebanon LBP7500 Tunisia Din7.50
Lithuania €4.30 Turkey TL19
Luxembourg €3.80 UAE Dh17.00

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 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
2 ★ FINANCIAL TIMES Wednesday 16 October 2019

INTERNATIONAL
GLOBAL INSIGHT
Turkish incursion
WARSAW

Russia sends troops to north-east Syria James

Shotter
Ankara move unacceptable, military operation in Syrian territory is was proceeding with its plan to assert ‘Ankara, in believed that Mr Erdogan had hoped to
unacceptable”. control over a 480km stretch of the bor- gain “much more territory” after
says Putin’s envoy as US my opinion,
warns of broader conflict
He said the security of the Turkish-
Syrian border “should be ensured . . .
by way of deploying government forces
der from the Syrian town of Manbij to
the Iraqi border. He vowed to secure the
region “within a short time”.
doesn’t have
launching his offensive last week but
had been boxed in by the rapidly shift-
ing dynamics and the demands of Wash-
Law and Justice faces
HENRY FOY — MOSCOW
LAURA PITEL — ANKARA
along the entire border”, a suggestion
that directly conflicts with Ankara’s
But the strong words from Russia,
which has become an important partner
any choice
other than
ington and Moscow.
“Ankara, in my opinion, doesn’t have
checks on dominance
CHLOE CORNISH — BEIRUT
Russia deployed troops in north-eastern
Syria to help the country’s leader,
plan to control a 32km-deep stretch of
the country’s north-east.
The warning from Moscow and the
for Turkey in Syria, served as a
reminder of the constraints likely to be
imposed by other foreign powers.
reaching a
any choice other than reaching a deal
with Russia and the US,” he said.
Mark Esper, US defence secretary,
despite election win
Bashar al-Assad, reassert control over announcement that Russian soldiers They came less than 24 hours after US
deal with said yesterday that US troops were
the territory in the wake of Turkey’s had been deployed on the front line president Donald Trump also set out his Russia and retreating partially because they were

L
military onslaught against Kurdish between Syrian and Turkish troops own red lines on the Turkish incursion the US’ “at risk of being engulfed in a broader aw and Justice had just scored the best election
fighters. came two days after Kurdish forces and announced US sanctions on conflict”, underscoring fears that inter- result by any party since Poland returned to
Alexander Lavrentiev, President struck an emergency deal with the Syr- Ankara. Analyst national powers could be dragged into democracy 30 years ago. But as Jaroslaw Kac-
Vladimir Putin’s special envoy for Syria, ian regime in order to ward off a Turkish Sinan Ulgen, chairman of the Istan- direct confrontation in the chaotic zynski took to the stage at party headquarters
labelled Ankara’s incursion “unaccepta- assault against them. bul-based think-tank Edam, said that, north-east Syrian theatre. on Sunday night, he seemed almost deflated.
ble”, telling reporters yesterday that the That pact has seen Mr Assad, backed from a military perspective, Mr Despite a pledge by Mr Erdogan to “We achieved a lot,” the normally pugnacious Law and Jus-
offensive had not been agreed with Rus- by Russian firepower, re-establish a mil- Erdogan could control the whole border send Turkish-backed Syrian rebel tice leader told supporters, “but we deserve more.”
sia, despite the Kremlin having emerged itary presence in several northern region if he wanted to. groups into Manbij, the Syrian army As the dust settles on Poland’s parliamentary election, it
as the most influential foreign power in towns that had been controlled by US- But he added: “The obstacle is of a moved into the border town yesterday, is not hard to see the roots of Mr Kaczynski’s disappoint-
Syria. backed Kurdish forces under the Syrian more political nature, about what hap- filling a vacuum left by US forces whose ment. After four years of near total dominance, the con-
In the harshest comments yet from a Democratic Forces umbrella. pens if he decides to do it.” bases there had been part of an effort to servative-nationalist party he founded increased the
Russian official, Mr Lavrentiev said Turkey’s President Recep Tayyip Kerim Has, a Moscow-based analyst assuage Turkey’s security concerns. number of votes it won from 5.7m in 2015 to more than 8m
Moscow had “always believed that any Erdogan yesterday insisted that Ankara of Russia-Turkish relations, said he Notebook page 8 in 2019, a jump of 40 per cent. Yet when the new parlia-
ment assembles, Law and Justice will be in a weaker posi-
tion than four years ago and the party’s next term in office
could, paradoxically, be trickier than the last.
The biggest difference between 2015 and 2019 is that
Africa. Lawlessness Law and Justice unexpectedly lost control of Poland’s
upper house, the Senate, after opposition parties clubbed

Nigeria offers amnesty to end banditry together and ran only one candidate against Law and Jus-
tice in most races.
If opposition senators can co-operate it will at least allow
them to delay legislation, making it harder for Law and
Justice to ram through controversial bills in the middle of
the night and at breakneck speed, as it has in the past.
States seek deal to curb mass “What we won’t be seeing is the parliamentary blitzkrieg
displacement of people caused [Law and Justice] had in terms of getting things through
very quickly,” said Aleks Szczerbiak, professor of politics
by ‘conflict entrepreneurs’ at the UK’s University of Sussex.
Politicians from the ruling camp also admit to disap-
pointment at their result
NEIL MUNSHI — KATSINA
in Poland’s lower house.
The bandits stormed Yar-gamji village Despite boosting their
‘We won’t be seeing
on motorcycles, wielding machetes and vote share from 37.6 per the parliamentary
guns. They shot Aisha Sulaiman’s hus- cent to 43.6 per cent, Law
band as he fled, but he reached home in and Justice will have the
blitzkrieg of getting
time to warn his family. same number of seats things through
Ms Sulaiman said her 16-year old (235) and the same
daughter, Fatsima, screamed for help as majority (five) as four
very quickly’
she tried to staunch her husband’s years ago. “The more
bleeding but none came. optimistic expectations were closer to 250 seats,” con-
The bandits shot her dead, just weeks ceded one party figure.
before she was to wed and, her mother “Law and Justice added a lot of voters and has much
hoped, leave their fraught corner of broader support than four years ago. But on the other
north-western Nigeria. “We wanted to hand . . . they had public television with all this propa-
get her married off so her husband could ganda, they had the state, and they finished with the same
take her someplace else, away from number of seats as four years ago,” said Agata Szczesniak, a
here,” Ms Sulaiman, 35, said through an commentator from OKO.press, an online news portal. “In
interpreter. the last few years, [they were] really like a machine. In a
While the decade-long fight against Ram raiders: bandit groups, exchanging jailed ban- states. Eventually, the rustlers turned to But other reasons for the rise in ban- few hours, they would bring a law to the Sejm [lower
Boko Haram jihadis may garner more traders sell dits for hostages. people, the governor said. “According to ditry may be harder to resolve. Explo- house] and approve it. Then it went to the Senate, and eve-
headlines, in the past year many more animals in Yar “Going to the forest [to negotiate] has them they learned how to kidnap from sive population growth and climate rything was finished, and then the president would sign it.
Nigerians have been affected by ban- Katungu market been very fruitful, even though we took security agencies”, who arbitrarily change are exacerbating economic anxi- Now it’s not going to be so easy. And they know it.”
ditry — motorcycle-riding gangs of men in Katsina, a a lot of risk,” said Katsina governor arrested herdsmen and released them ety and fomenting lawlessness, security The economic weather may also prove less favourable
who ransack villages or set up fake state where Aminu Bello Masari. “People were being only after being bribed, he said. experts said. “It’s highly under-po- than during Law and Justice’s first term. Poland’s growth
checkpoints on highways and kidnap goats, sheep and killed on a daily basis, children, women There are few signs the northwestern liced . . . the forest lands are rate has averaged more than 4 per cent since 2015 and
entire busloads of people. locals’ life were being abducted, so I think it was strategy will garner the resources the ungoverned, and there are hinterlands, been a big factor in the government’s ability to fund the
Roughly 40,000 people have been savings have worth it. For the last four weeks we Niger Delta did when it sought to reduce just vast space where the state is welfare schemes that have underpinned its success. But in
forced north into neighbouring Niger been stolen haven’t had any massive attacks.” militant attacks on pipelines. absent,” said Tanwa Ashiru, head of recent months the German economy has begun to slow,
amid escalating violence this year, George Esiri/EPE-EFE
Mr Masari has tried this tactic before Given how well-armed and wide- Lagos-based security consultancy Bul- and Polish companies, tightly enmeshed in the German
according to the UN High Commission with mixed results. In 2015 he negoti- spread the bandits are, the governor’s wark Intelligence. supply chain, are beginning to feel the impact.
on Refugees. Tens of thousands more ated a peace with cattle rustlers that outreach was “premature”, warned Bala With local police officers complaining Despite the challenges, however, Law and Justice still has
have been internally displaced across a largely held through 2018, although the Hussain, a professor of conflict resolu- of a lack of resources, the evidence strong cards. It is by far the most popular party. It is not
region that is home to more than 30m. rustlers moved into neighbouring tion at Umaru Musa Yar’Adua Univer- locker at the Katsina police headquar- inconceivable that it could regain the Senate by persuad-
“Whereas historically it was more in sity and head of the Red Cross in ters reveals the daunting odds. It is filled ing a couple of senators to switch allegiance.
the Niger Delta, now it has spread north, NI GE R
Katsina. “They haven’t set up all the with machetes and homemade rifles, And its main rival, the centre-right Civic Coalition, has
it has spread west, now it is permeating SOKOTO CHAD mechanisms, or done the groundwork but also AK-47s and a submachine gun. problems of its own: it lacks a charismatic leader, has
throughout the whole country,” said a before going into the bush, or dealt with Back in Katsina, victims were scepti- struggled to renew itself since 2015, and seems unclear
senior corporate security official. “It is a the victims of this banditry,” he said. cal about the prospects for the gover- whether to try to beat Law and Justice by consolidating its
bit like a cancer moving through a coun- KATSINA “It’s all very disheartening . . . nor’s peace deal. Hannatu Muazu lost appeal to Poland’s liberal voters or winning back moderate
try. People realised this is a way to make because these [bandits are] conflict five cows, a dozen goats and sheep and conservatives.
BENIN KADUNA
money when you’ve got nothing to do.” entrepreneurs who will never rest with- her life savings — about $120 — when Grzegorz Schetyna, Civic Coalition’s leader, hailed the
Heavily armed groups have rendered out a comprehensive plan.” bandits raided her village in June. election results as a sign “there won’t be Budapest in War-
large parts of the country insecure, even Abuja Mr Masari has promised to address Ms Muazu said she supported any saw”, a reference to Mr Kaczynski’s avowed aim of mim-
as Nigeria has deployed the military and NIGERIA the bandits’ grievances, including plan that would get her off the streets, icking the “illiberal democracy” Viktor Orban has built in
police against the bandits. Now in a new access to water, schools and other serv- where she and the other women have Hungary. The next test comes in a presidential election in
and controversial strategy, echoing a ices. “We are determined to make it sus- been reduced to begging. “We don’t spring. If the opposition is to have a serious chance of act-
similar and fairly successful pro- CAM ERO ON tainable and from the feelers we have have any confidence it will work,” she ing as a check on Mr Kaczynski, it will need to regroup fast.
gramme in the Niger Delta, three states from the forest, clearly they want it to be said. “But all we need is peace to get
300 km
have announced an amnesty with some sustainable,” he said. back to our homes.” james.shotter@ft.com

EIB
MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription EU bank delays decision on banning natural gas investment
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
LESLIE HOOK — LONDON can fund the transition to a low-carbon 2025. The EIB is also targeting $1tn in cleaner energy, because natural gas
Trump vs the Valley A Five Star plan? Dear Don...
economy. total climate-related funding in the dec- plants can be used to balance intermit-
Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
Italy’s populists are trying to woo
the poor — BIG READ, PAGE 11
May’s first stab at the break-up
letter — ROBERT SHRIMSLEY, PAGE 12
The European Investment Bank has
HMRC warns Lloyd’s of Brussels Insurance market But some big EU member states, ade to 2030, which would represent a tent power from renewable sources
postponed a decision that would have
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80 SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017
Briefing
to tap new talent pool with EU base
customs risks THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

including Germany and Poland, have significant acceleration. such as wind and solar.
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE TECHNOLOGY IS
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

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

opposed the proposed changes to lend- “We have just over 10 years to turn the Proponents also point out that build-
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

euros towards natural gas projects, fol-

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

3 Confidence in IT plans ‘has collapsed’

3 Fivefold rise in declarations expected
JAMES BLITZ — WHITEHALL EDITOR
Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
How To Spend It
ing policy, while the existing commis- tide on the climate and environmental ing less gas infrastructure could keep
A survey has revealed that a
adjust its negotiation position with the
record 455 tall buildings are
planned or under construction
in London. Work began on
over disputed painting of Jane Austen
engulfed in
EU, a Whitehall official said. “If running almost one tower a week

lowing strong opposition from mem-

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

fresh tax probe

sion has also expressed reservations. emergency,” Mr Hoyer said last month. existing coal stations in operation for
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
mentary inquiry that the new system
needed urgent action to be ready by
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland

bers, including Germany.

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”.
complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image

Setting up a digital customs system
has been at the heart of Whitehall’s
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
Annika Breidhardt, a commission “The world is heading in the right direc- longer.
CDS, indicating it would be delivered on
time. But last month, it wrote to the i HSBC woos transgender customers
committee saying the programme had The bank has unveiled a range of gender-neutral
RALPH ATKINS — ZURICH it followed “a strategy offull client tax
been relegated to “amber/red,” which DUNCAN
titles such asROBINSON — BRUSSELS
“Mx”, in addition to Mr, Mrs, Misscompliance”
or but was still trying to
means there are “major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.

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

(Deposito Legal) M-32596-1995;

Theresa May announced in January that
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
The board of the world’s largest multi- spokeswoman, said on Monday: “Natu- tion but it is behind schedule.” Last week Bob Dudley, chief execu-
international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
the EU . . . Internal ratings are designed The Swiss bank said yesterday it was tax authority added: “The international
to make sure that each project gets the
focus and resource it requires for suc-
Terror attacks inwith
co-operating western Europe after
authorities
offices in London, Paris and Amsterdam
Recent reach
itsattacks
notably the message
2011
— of this investigation sends a clear
that there is no hiding place for
The lure of the exotic
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
lateral development bank was unable to ral gas will remain an important compo- Since 2013 the bank has lent €13.4bn tive of UK oil group BP, complained that
bombings — have
thousand” bank accounts opened in
bucked the trend
Switzerland and not declared to French

London EC4M 9BT.

ranging from customs and immigration
to agriculture and fisheries — by the
time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance mar-
ket, said he expected other
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
London’s specialist insurance
groups after the UK leaves the
its transport links, talent pool
and “extremely good regula-
tory reputation”.
Lex page 14
Insurers set to follow page 18
to overhaul business models and ensure
customers meet international tax
requirements following a US-led clamp- Publishing Company, The Financial Times Limited,
of generally low

western Europe
tax authorities.
fatalities from
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

reach a decision on whether to cease all nent in the EU’s energy mix in the near to fossil fuel infrastructure, of which natural gas was being “demonised” by
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-
actions co-ordinated by Eurojust, the ranging conspiracy” to help clients THE RISE
Escape OF
the taper ECO-GLAM
trap
EU’s judicial liaison body. evade tax. It agreed to fines of $2.6bn.

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

fossil fuel lending from the end of 2020. future, as we move toward cleaner more than €9bn went to natural gas the anti-fossil fuel movement, arguing
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
Board members representing the 28 EU sources of energy.” pipelines and distribution networks. that it had a “vital role” to play in the
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 countries agreed to postpone the deci- If the proposal is approved, then the Industry campaigners argue that nat- transition toward cleaner fuels.
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

emeaads@ft.com Subscribe In print and online World Markets

lot more. Some 43 per cent of care
staff — amounting to 341,000 people
aged 25 and over — earn less than the
44557825
“phased approach” to the divorce proc-
ess that prioritises progress on with-
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

sion until next month. EIB would be the first multilateral bank ural gas should be part of a transition to Some EIB board members have asked
www.ft.com/subscribenow new living wage and the increase is The decision to add the clause giving British officials admitted that the EU’s after Brexit with a trade deal.
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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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0.859
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Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)
Following yesterday’s board meeting, to boot natural gas out of its portfolio for to water down the proposal by pushing
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297.99 297.73 0.09 Gold $
Mar 30
50.22
52.98
1248.80
prev
49.51
52.54
1251.10
Fed Funds Eff
%chg US 3m Bills
1.43 Euro Libor 3m
0.84 UK 3m
-0.18 Prices are latest for edition
0.66
0.78
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7369.52 -0.63 € index
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Andrew McDowell, EIB vice-president, new loans. It has already halted coal back the suggested 2020 implementa-
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24111.59 24301.09 -0.78 Oil Brent $
297.38 298.11 -0.24 Gold $
50.46
53.35
1244.85
50.35
53.13
1248.80
0.22 Euro Libor 3m
0.41 UK 3m
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Wednesday 16 October 2019 ★ FINANCIAL TIMES 3

INTERNATIONAL

Spain’s jailing of separatist leaders

Enlargement talks

reignites divisions over Catalonia
Regional government chief demands amnesties but is snubbed by Madrid, which has one eye on poll
DANIEL DOMBEY — BARCELONA
Catalonia has been shaken by the turbu-
lent aftermath of a Supreme Court deci-
sion to jail the Spanish region’s separa-
tist leaders. While the head of the court
has called the judgment the most
important in the history of the country’s
democracy, the region’s government
attacked it as a denial of basic rights.
The Supreme Court sentenced Oriol
Junqueras, the former deputy leader of
Catalonia’s regional government, to 13
years in prison for sedition and misuse
of public funds, over an illegal 2017 ref-
erendum on independence. It sentenced
eight others to between nine and 12
years.
In response, thousands of protesters
took to the streets on Monday, cutting
off roads and railway lines and causing
chaos at Barcelona airport, where more
than 100 flights were cancelled and
more than 130 were injured in clashes
between demonstrators and police.
Quim Torra, the head of the Catalan
government, reiterated yesterday his
demand for an amnesty for the prison-
ers — which Madrid has ruled out — and
for a dialogue with Pedro Sánchez,
Spain’s caretaker prime minister, about
the separatists’ calls for another refer-
endum.
Here the FT looks at what is next for
Catalonia.
What are the two sides saying?
The Sánchez government has tried to
project an image of firmness while seek-
ing to avoid exacerbating the crisis. In
particular, it has called for dialogue.
But it insists that first this has to be
between separatists — who have never
commanded a clear majority of popular
support in Catalonia despite controlling
the regional parliament and adminis-
tration — and other Catalans.
“The Catalan institutions need to act
with responsibility and maturity . . . to
ensure that there is calm as far as society
is concerned, that the wounds of the
process are healed,” said Nadia Calviño,
Spain’s economy minister.
Expressing her hope for a “new
era . . . [of] peaceful coexistence” after
the court decision, she called for the
regional authorities to “represent the
rights and interests of the whole popula-
tion of Catalonia and not only the inter-
ests of the minority which defends the
secession from the rest of Spain”.
Catalan separatists reject such an
interpretation.
“It is obvious with this sentence that
there is a political conflict between Cata-
lonia and Spain and for that reason you
can only resolve it politically,” Pere
Aragonès, the current deputy leader of
the regional government, told the
Financial Times.
“The sentence is very grave; between
them, the defendants have been sen-
tenced to almost 100 years of prison,” he
said.
“But we, the independence move-
ment, are not going to disappear. We are
going to stay, winning elections, so
Sánchez should recognise he has a polit-
ical problem.”
EU tensions
exposed as
Paris opposes
Balkan states’
entry to bloc
MICHAEL PEEL — BRUSSELS
VALERIE HOPKINS — BUDAPEST
The prospect of the EU triggering
enlargement talks with North Macedo-
nia and Albania hung by a thread yes-
terday after France mounted fierce
opposition to the Balkan countries
joining the bloc.
EU foreign and Europe ministers were
haggling in Luxembourg in a final effort
to win agreement ahead of a two-day EU
summit starting tomorrow, at which
many member states want to launch the
accession process for Skopje and Tirana
as part of a strategic battle for the west-
ern Balkans.
But the French objections have laid
bare tensions over the bloc’s stance on a
region surrounded by EU countries in
which rival powers including China,
Russia and Turkey are vying for influ-
ence. Paris argues that North Macedo-
nia and Albania need to implement
more reforms before talks can begin. It
also says the EU accession process needs
to be more demanding and reversible.
“The French are playing with fire,”
said one EU diplomat from the majority
group that supports launching acces-
sion talks with both countries. “This
could threaten the stability of the
region. It’s a very serious thing.”
EU diplomats said Paris stood alone in
its opposition to North Macedonia,
which has initiated a series of reforms
demanded by the EU, including chang-
ing its name to end a decades-old dis-
pute with neighbouring Greece.
“We hope that in the end France will
live up to its European leadership aspi-
rations and join the EU consensus on
Bring to a head: time around, Catalan authorities ‘We are not a solution would have to wait at least North Macedonia,” said an official from
a man plants a What will happen on the street? appeared to be trying to stay within the until after Catalan elections, which another member state.
Catalan pro- The large-scale mobilisation on Monday law after the tough sentencing by the going to could take place next year although they North Macedonia, which resolved
independence indicated the extent of separatist anger. Supreme Court. disappear. are not formally due until 2022. “impossible” talks over its name last
flag in front of a Police charged thousands of demonstra- “They are thinking of the judicial con- year and “made a democratic U-turn at
mural of former tors in the city’s airport after an organ- sequences.” We are What is next in the courts? home”, had been waiting 14 years to
Spanish dictator ised attempt to bring operations to a going to The defendants in the case can appeal to open EU talks, the country’s foreign
Francisco standstill. What are the implications for Spain’s constitutional court and, ulti- minister, Nikola Dimitrov, told the
Franco, left, and However, in contrast with the Spanish politics? stay, mately, the European Court of Human Financial Times. Decisions on negotia-
King Felipe in sequence of events around the October The tensions around the Catalan crisis winning Rights. tions were postponed last year and this
Bilbao 2017 referendum, the regional police are aggravated by the fact that Spain has Two related cases are heading to summer because of EU disunity.
yesterday. force has worked with national police in a general election in less than a month, elections, so courts elsewhere in Europe, where “What’s at stake is EU enlargement
Below, protests breaking up the demonstrations. on November 10. Sánchez Spanish prosecutors have had problems policy and the European perspective for
at Barcelona “We and the public institutions are In large part because he does not want convincing their foreign counterparts the Balkans itself. The question is if the
airport on going to guarantee the rights of all, those to rely on the votes of Catalan separatist should that sedition — not a crime in all juris- EU will keep the lighthouse lit,” he said.
Monday who want to protest and those who do MPs, Mr Sánchez gave up efforts to form recognise dictions — is an extraditable offence. The debate over Albania is more
Alvaro Barrientos/AP;
not want to,” said Mr Aragonès. a government with the current parlia- Pablo Llarena, the prosecutor in the nuanced, as countries other than France
Angel Garcia/Bloomberg
Pablo Simón, professor of politics at ment and instead triggered Spain’s he has a case, immediately reactivated his bid to — including the Netherlands and Den-
Madrid’s Carlos III University said, this fourth election in four years. political bring back to Spain Carles Puigdemont, mark — are sceptical because of fears
That means that any attempt at com- the former head of the Catalan regional about domestic political instability,
promise will be enormously compli- problem’ government, who fled to Belgium rather organised crime and the stalling of some
cated by electoral constraints. A back- than face trial. reforms. Albania undertook a painful
lash in the rest of Spain against Catalan The European Court of Justice is also judicial vetting procedure in the hope of
separatism could also help the right. proceeding with a case to determine moving towards EU membership.
Ms Calviño said the government’s whether Junqueras, Mr Puigdemont’s Gent Cakaj, Albania’s foreign affairs
approach to Catalonia was part of its former deputy, has judicial immunity as minister, warned that blocking negotia-
general stance since taking office last a member of the European Parliament. tions would diminish the EU’s role in the
year of “trying to calm down the ten- Lawyers for the separatist defendants entire region and “risks undermining
sion, of trying to . . . engage in a con- emphasise that a number of further reformist forces in the region”. A nega-
structive dialogue . . . but always within cases are set to proceed in Spain itself. tive decision would “embolden third
the applicable laws”. One high-profile defendant is Josep actors who have been waiting in the
Mr Aragonès said he hoped “after Lluís Trapero, the former head of the wings for a long time”.
November 10 we will have another Mossos, the regional police force, whom Paris faces the perceived political
opportunity for dialogue”, adding that the Supreme Court said had been com- threat of the far-right using enlargement
after the vote: “Pedro Sánchez can no plicit with Catalan authorities in facili- to push scare stories about Balkan crim-
longer avoid his responsibility.” tating the illegal referendum. inal gangs and an influx of Muslims.
Prof Simón said that a real attempt at Editorial Comment page 8 Additional reporting by Victor Mallet

PrivatBank court case Overseas students

Ukraine oligarch fails to overturn asset freeze UK business school growth bucks global trend
BEN HALL — LONDON
ROMAN OLEARCHYK — KIEV
Igor Kolomoisky, one of Ukraine’s most
powerful oligarchs who is close to the
country’s president, has lost an
attempt to release $1.9bn of assets fro-
zen by an English court in connection
with a banking scandal that still threat-
ens to derail the country’s economic
recovery.
The Court of Appeal in London yester-
day upheld an asset freeze imposed
against Mr Kolomoisky and Gennadiy
Bogolyubov, the former owners of Pri-
vatBank, Ukraine’s largest lender, in
2017. It also allowed the bank to pursue
claims against the two men.
PrivatBank was nationalised in
December 2016 after regulators found a
$5.5bn hole in its balance sheet, much of
it allegedly stemming from fraudulent
and related-party lending. The bank is
now under new management and is try-
ing to recover, through English and US
courts, assets that it says were stolen by
the previous owners.
The appeal court judges overturned a
previous ruling from December that
found English courts had no jurisdiction
in the case and that PrivatBank had
overstated the amount of losses it had
incurred. The judges turned down a
request for appeal.
Fieldfisher, lawyers for Mr Kolo-
moisky, said he would seek to appeal
against yesterday’s ruling in the UK’s
Supreme Court.
“Mr Kolomoisky maintains that there
was no fraud and no loss was caused to
the bank,” Fieldfisher said. “He also
maintains that the bank’s claims are
misconceived and will ultimately fail.”
Mr Kolomoisky is, meanwhile, seek-
ing to have the nationalisation over-
turned in the Ukrainian courts, a move
that could imperil a further lending pro-
gramme to the country from the IMF
and undermine investor confidence.
Mr Kolomoisky has business ties with
Volodymyr Zelensky, Ukraine’s presi-
dent, whose comedy shows ran on
the oligarch’s television station. Mr
Kolomoisky’s former lawyer in the Pri-
vatBank case is now Mr Zelensky’s chief
of staff.
Igor Kolomoisky intends to appeal
against the court decision
Mr Zelensky said last week that not a
“single kopek” would be paid to Mr
Kolomoisky in connection with the Pri-
vatBank case but he is yet to make an
unequivocal statement backing its
nationalisation, which involved an
injection of taxpayers’ money amount-
ing to 5 per cent of Ukrainian gross
domestic product.
After the ruling, PrivatBank said the
court concluded that the state-owned
bank “has a good arguable case to
recover the full $1.9bn [$3bn including
interest] given in the particulars of
claim . . . in circumstances where the
fraud claim involves what the judge
found was fraud and money laundering
on an ‘epic scale’.”
Petr Krumphanzl, PrivatBank’s chief
executive, said the ruling was “an
important step towards achieving jus-
tice for the bank and the people of
Ukraine”.
Richard Lewis, partner at Hogan
Lovells, which represented the bank,
said: “As the lord justices observed, the
defendants accepted that there is a good
arguable case of fraud against them, and
none of them has offered any explana-
tion for what the court described as a
‘myriad of transactions having no evi-
dent commercial logic’.
“It is increasingly difficult to see how
the defendants will defend the bank’s
claims at trial.”
JONATHAN MOULES — LONDON
British institutions have bucked a glo-
bal downturn in demand for MBAs,
suggesting the UK’s hostile immigra-
tion regime and political turmoil over
Brexit have failed to deter prospective
students.
Worldwide applications for business
masters degrees fell 3.1 per cent in the
last academic year, the second straight
decline, according to the Graduate Man-
agement Admission Council (GMAC),
an international entrance exam admin-
istrator.
In the US, home to the MBA degree
format, 56 per cent of schools reported a
fall in applications. But 59 per cent of
business schools in the UK reported
growth across all postgraduate degrees,
and applications from overseas students
were up at three in four institutions.
Bill Boulding, dean of Duke Univer-
sity’s Fuqua School of Business and
chair of the GMAC board, said British
business schools were seen as a smarter
option in terms of job opportunities and
return on the investment of study com-
pared with other markets, particularly
the US, where fees are higher.
“Talent will flow to places where there
is opportunity,” Mr Boulding said, not-
ing that the UK is second only to the US
in terms of MBA course rankings and
has a comparably strong jobs market.
“The US is still a vibrant place for jobs,
with employers having a hard time fill-
ing vacancies, but this is a global compe-
tition for places.”
Concerns about the negative impact
of the UK’s vote to leave the EU are no
longer shared by those coming from
overseas to study at British institutions.
In separate research among this group
by GMAC, 54 per cent said Brexit had no
impact on their decision to study in the
‘The UK’s business schools
have adapted to student
demands and a hostile
immigration environment’
UK, up from 46 per cent in a similar poll
conducted shortly after the referendum
result in 2016.
Business school heads expect their
international position to improve fur-
ther next year after Boris Johnson, UK
prime minister, last month announced
that students could stay for up to two
years after graduation to seek work, a
reversal of restrictions imposed in 2012.
“The UK’s business schools have
shown agility in adapting to evolving
student demands and a hostile immi-
gration environment,” said Anne Kiem,
chief executive of the Chartered Associ-
ation of Business Schools, the UK indus-
try association. The post-Brexit referen-
dum weakness in the value of the pound
had helped attract students, but so had
the actions of school admissions depart-
ments, promoting courses more widely,
Ms Kiem added. “UK business schools
have had to step up their recruitment at
home and abroad.”
European business schools have long
been more international in their intake
than their peers in other parts of the
world, with 79 per cent of applications
to these institutions coming from
abroad and 59 per cent outside the EU.
According to the GMAC research,
almost two in three European schools
reported stable or growing application
growth from overseas this year and
60 per cent reported growth in applica-
tions from abroad. However, most of
those seeking a postgraduate business
qualification chose to study at home.
Demand is growing among schools in
the Asia-Pacific region but 55 per cent of
the applicants this year were domestic
talent and only 10 per cent came from
other parts of the world.
Such figures illustrate a worrying
trend, dragging the world back to isola-
tionism last seen in the 18th century,
according to Sangeet Chowfla, president
and chief executive of GMAC.
“We think business education is a
force for good but what is happening
here is regressive.”
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4 ★ FINANCIAL TIMES Wednesday 16 October 2019

INTERNATIONAL

Last-minute talks World Cup qualifier

Hopes rise for UK-EU Brexit agreement North Korea

Brussels says crucial issue
is whether British PM can
convince parliament
JIM BRUNSDEN, SAM FLEMING AND
MEHREEN KHAN — BRUSSELS
MICHAEL PEEL — LUXEMBOURG
EU and British negotiators were locked
in negotiations to broker a Brexit deal,
as UK prime minister Boris Johnson
sought political backing for a plan that
would impose EU customs checks on
goods entering Northern Ireland from
mainland Britain.
Talks continued yesterday evening in
Brussels, with officials on both sides
expressing hope that there could be a
breakthrough for a deal to be presented
at a summit of EU leaders tomorrow.
Mr Johnson has long identified the
summit as the crunch moment in the
Brexit negotiations, and failure to
achieve a deal by then would leave him
forced by UK law to seek a delay to Brit-
ain’s October 31 departure date.
EU officials said a crucial issue was
whether Mr Johnson could sell the plan
to the UK parliament, including Euro-
sceptic Conservative MPs and Northern
Ireland’s Democratic Unionist party,
which props up his government.
“This is a moment of political leader-
ship: does the UK want Brexit? If so, the
EU is ready to conclude a deal,” said one
EU official.
North America. Elections
Mr Johnson’s chances of securing par-
liamentary approval for a withdrawal
agreement rose after Steve Baker, head
of the European Research Group of pro-
Brexit Conservative MPs, said he
believed an acceptable deal could be
secured with the EU.
Emerging from a meeting with Mr
Johnson, Mr Baker said: “I am optimis-
tic that it is a possible to reach a tolera-
ble deal that I am able to vote for.”
The progress in the UK-EU negotia-
tions after several days of intense work
has prompted cautious optimism in
Brussels that a deal that was considered
impossible only recently may be within
reach.
It contrasts starkly with Sunday
evening, when EU chief negotiator
Michel Barnier gave a downbeat assess-
ment to diplomats of Britain’s Brexit
proposals.
Since then, the two sides have focused
on settling the vexed issue of how to pre-
vent a hard border on the island of Ire-
land after Brexit, and in particular the
need for a watertight proposal for how
and where to carry out customs checks.
Mr Barnier yesterday morning said
that a deal in the coming hours would
be “very, very difficult but possible”.
EU diplomats said the “landing zone”
that had emerged in the talks was one
that would keep Northern Ireland inside
the UK’s customs territory while ensur-
ing that EU checks and controls are car-
uses football
ried out on goods entering the region.
The EU has warned that it will only be
clash with
able to strike a Brexit deal if it is con-
vinced that the customs system will be
South to vent
resistant to fraud and smuggling within
the bloc’s internal market, while Mr
Johnson is desperate to minimise how
sanctions fury
far Northern Ireland is cut off from the
rest of the UK. EDWARD WHITE — SEOUL
EU diplomats said talks yesterday had
A rare inter-Korean football match
focused on how to address EU concerns
played in North Korea has become the
about possible abuse of the single mar-
latest sign that Kim Jong Un’s interna-
ket, while making sure that businesses
tional charm offensive is losing its
in Northern Ireland were not unfairly
lustre with South Korean fans and
hit by EU tariffs and benefit from British
media shut out of the action.
trade deals after Brexit.
Additional reporting by Victor Mallet in The World Cup qualifier, held yesterday
Paris at Kim Il Sung Stadium in Pyongyang,
was the first inter-Korean men’s match
to be played on North Korean soil since a
friendly match in 1990. It ended 0-0.
Despite the potential for the historic
contest to be used as a beacon of inter-
Korean friendship, it has instead put the

Young Canadians look beyond Trudeau spotlight on worsening relations

Millennials represent largest
voting bloc but many have lost
faith in premier since 2015 poll
JASON KIRBY — TORONTO
In 2015, few young Canadians were
more dedicated to getting Justin Tru-
deau elected than Justin Kaiser.
A Liberal since he was 17, Mr Kaiser
had volunteered in two previous elec-
tions and at 24 had risen to become the
national head of the Young Liberals, the
party’s youth wing. It was his job to iden-
tify young voters on campuses and “per-
suade them to vote for Justin Trudeau”.
“We had a message of real change and
doing things different, and we were
extremely successful with it,” he said,
noting that Liberal candidates were
elected in “almost every single riding
[electoral district] with a university and
the neighbouring ridings next to those
universities”.
Much has changed. Today, as a cam-
paign manager for a Green party candi-
date in Vancouver, British Columbia, Mr
Kaiser is working to oppose the re-elec-
tion of Prime Minister Trudeau’s gov-
ernment on October 21.
“Too many things happened [during
Mr Trudeau’s first term] that were not
in the best interest of the country,” he
said, pointing to the Trudeau govern-
ment’s purchase and approval of the
Trans Mountain Pipeline. “You can’t be
a climate leader and buy a pipeline.”
In an election where millennials
account for the largest demographic
bloc of voters, Mr Kaiser is an example
of a phenomenon that could spell trou-
ble for Mr Trudeau on polling day: the
young people who came out in droves to
support him in 2015 are showing signs
they will not return in the same num-
bers this time.
The 2015 election was “a complete
anomaly”, said John Wright, a pollster
with Dart Insight and Communications.
Historically less than 40 per cent of
people in the 18-34 age group cast bal-
lots in federal elections. But in 2015, the
voting share jumped to 57 per cent, with
Mr Trudeau picking up most of the
increase.
The prime minister’s message
of hope and change, which ech-
oed that of then US president
Barack Obama’s 2008 cam-
paign, “galvanised” young
voters in the final week of the
campaign, said Mr Wright.
Justin Trudeau The Liberals embraced social media and
takes part in a Mr Trudeau’s rhetoric around toler-
Thanksgiving ance, transparency, climate action and
food drive in female equality — not to mention his
Toronto, promise to legalise cannabis — con-
Ontario, on trasted with Conservative prime minis-
Sunday. Below, ter Stephen Harper’s repeated talk
New Democratic about tax cuts.
party leader While the Harper Conservatives ulti-
Jagmeet Singh mately received nearly as many votes as
Stephane Mahe/Reuters they had in the 2011 election, the higher
turnout of young voters, along with the
collapse of the left-leaning New Demo-
cratic party in that election, elevated Mr
Trudeau to the top.
The landscape looks much different
in the final week of this campaign. A
new Dart & Maru/Blue poll puts the
NDP at 39 per cent among voters aged
18-34, up from 22 per cent a month ago.
Over the same timeframe Liberal sup-
port among younger voters fell from 39
per cent to 27 per cent. (Conserva-
tives more or less held steady at 24
per cent among the demographic
while the Greens are up 3 percent-
age points to 8 per cent).
“Jagmeet Singh is riding rocket
fuel,” said Mr Wright, of the NDP
leader.
Mr Singh, a Sikh and Canada’s first
non-white federal party leader, has
received praise, including from Mr Tru-
deau and Conservative leader Andrew
Scheer, for his calm handling of several
racist incidents.
Earlier this month a man in Montreal
told Mr Singh to “cut your turban off” to
“look like a Canadian”. With his hand on
the man’s shoulder Mr Singh replied: “I
think Canadians look like all sorts of
people. That’s the beauty of Canada.”
Mr Trudeau has tried to recreate the
magic of 2015 with the country’s
younger voters. He has taken his cam-
paign to university campuses across
the country and promised breaks on
student-loan repayment.
To repair his damaged environmental
bona fides he joined a massive “climate
strike” march in Montreal in Septem-
ber, though critics on the left and right
noted that Mr Trudeau was in effect
protesting against his own record as
prime minister. When Mr Trudeau
met Swedish climate activist Greta
Thunberg before the march, she told
him he was “not doing enough” on cli-
mate change.
But the Liberals have also sought to
‘You can’t hold on to younger voters by warning
that a vote for anyone but Mr Trudeau
be a climate could split the progressive vote and pave
leader and the way for a Conservative victory,
which Mr Trudeau said would take Can-
buy a ada “backwards”.
pipeline’ That campaign message was dealt a
serious blow when photos and a video of
Green party Mr Trudeau in blackface make-up and a
campaigner mock turban emerged last month. Mr
Singh, who accepted a private apology
from Mr Trudeau, countered vote-
splitting fears this week by proposing a
Liberal-NDP coalition with a shared
cabinet to prevent a Conservative gov-
ernment, assuming the Liberals do not
win a majority next week.
While millennials outnumber baby
boomers in Canada, political observers
warn too much should not be made of
their electoral power. For one thing they
did not vote as a bloc, said Melanee Tho-
mas, an associate professor of political
science at the University of Calgary.
As for Mr Singh’s rising popularity, Ms
Thomas did not know whether it would
translate into votes, but “if we’re going
to talk about the leader who has cap-
tured younger folks’ imagination, this
time around it’s not Trudeau”.
between the neighbours. Ties have
frayed further since Pyongyang began
testing nuclear weapons again this year.
North Korea did not respond to
requests from Seoul to allow South
Korean media to broadcast the match
and for the country’s supporters to
attend, according to officials in Seoul.
The game was played in an empty sta-
dium. South Korean players were forced
to travel to Pyongyang via flights from
Beijing.
The inhospitable welcome stands in
stark contrast to events just last year. At
the 2018 Winter Olympic Games in
Pyeongchang in South Korea, the two
nations fielded a joint women’s ice
hockey team and their athletes
marched under a “unification flag”.
Analysts said the footballers’ chilly
reception was a result of North Korean
anger at the lack of economic help from
the South, where President Moon Jae-in
has failed to convince the Trump
administration to ease sanctions.
“Moon hasn’t really given North
Korea what it wanted, which is real,
tangible economic assistance. That is
why this event isn’t going to lead to any
further engagement efforts on the part
of North Korea,” said Go Myong-hyun, a
research fellow at the Asan Institute for
Policy Studies in Seoul.
The absence of any fanfare to accom-
pany the match was part of a broader
shift away from Mr Kim’s international
outreach policy in 2018, said June Park,
a Seoul-based political economist. That
policy included a series of summits with
Mr Moon that paved the way for meet-
ings with US president Donald Trump.
Since May, North Korea has resumed
ballistic missile launches, raising con-
cerns it would return to more serious
military provocations to pressure the
international community to ease sanc-
tions. Ms Park said North Korea’s cool-
ing relationship with Seoul also showed
signs of rapprochement between the
two “was all theatrics” by Pyongyang.
“The real intent from the beginning
was not South Korea, it was [engaging
with] the United States,” she said.
Empty stadium: the Koreas play out
a 0-0 draw behind closed doors

Restive region Refugee crisis

Kashmir communications blackout relaxed Chile threatens blockade against Venezuela

AMY KAZMIN — NEW DELHI
India has begun a partial rollback of the
draconian communications blockade
it imposed on its volatile Kashmir
region two months ago when Prime
Minister Narendra Modi’s government
revoked its political autonomy.
At midday on Monday an estimated 4m
mobile phone connections sprang to
life. However, internet services, and an
estimated 2.6m pre-paid mobile phone
connections, remain suspended.
“They have digitally disappeared us,”
Khurram Parvez, programme co-ordi-
nator for the Jammu Kashmir Coalition
of Civil Society, said. “In today’s world,
phones and internet are a basic human
right. If you don’t have access to this,
how much development can you do?”
It is two and a half months since New
Delhi suspended all telephone and
internet services to the Muslim-major-
ity Kashmir Valley, a region still smoul-
dering after the violent, Pakistan-
backed separatist insurgency that
peaked in the 1990s.
Mr Modi’s government had defended
the restrictions on telecoms services as
necessary to curb protests against con-
stitutional changes introduced in
August, which ended Jammu and Kash-
mir’s special status as an autonomous
region of India. But New Delhi has faced
growing criticism, including from
abroad, for its continued clampdown,
which sat uneasily with its claim that
Prime Minister
Narendra Modi
has come under
pressure from
the US over the
restrictions
the political reorganisation of Jammu
and Kashmir was intended to foster
greater economic prosperity.
Reflecting international concerns, the
US Congress’s House committee on for-
eign affairs last week publicly urged
India to ease the restrictions.
The political reorganisation of Jammu
and Kashmir in August was preceded by
the imposition of tough restrictions on a
population still scarred by the legacy of
a conflict that has claimed more than
45,000 lives since 1989.
All visitors, including religious pil-
grims and holiday makers, were
ordered out of the Kashmir Valley,
ostensibly because of an elevated terror
threat. Telecoms services were sus-
pended. Hundreds of political and civil
society leaders, including several
former state chief ministers, were
arrested. Schools and educational insti-
tutions were closed, and ordinary resi-
dents told to stay in their homes.
In mid-August, after the constitu-
tional changes were approved by parlia-
ment, New Delhi restored services to the
valley’s 50,000 landlines and later reo-
pened primary schools. Last week,
Kashmir was formally reopened to tour-
ism and August’s evacuation order
rescinded. But school attendance is
minimal. Many shops only open briefly
in the early morning or late at night, but
otherwise remain shut in what Kash-
miris describe as a “civil curfew” to reg-
ister discontent.
New Delhi blames the continuing dis-
ruption on threats from separatist mili-
tants, and in a newspaper advertise-
ment last week urged Kashmiris to
resume their normal lives.
BENEDICT MANDER — SANTIAGO
Chile’s foreign minister has vowed to
work with allies to cut off Venezuela’s
communications, shut down its air
space and implement a naval blockade
if Nicolás Maduro refuses to hold free
elections.
Amid an escalating humanitarian crisis
that is destabilising the region, causing
more than 4m Venezuelans to emigrate,
“ever stricter” measures must be taken
to put pressure on Caracas to comply
with demands to restore democratic
order, Teodoro Ribera said.
“The solution to the crisis has to be
soon . . . Venezuela is a problem for
hemispheric security,” Mr Ribera told
the Financial Times. He pointed out
that some 400,000 Venezuelans lived
among Chile’s 18m-strong population.
“We have to make Maduro understand
that it is preferable to call elections than
not to call them.”
Sanctions have failed to persuade
Caracas to heed calls for elections from
the international community acting
through the Inter-American Treaty of
Reciprocal Assistance, whose members
also include the US and Argentina. Mr
Ribera said the “logical next steps”
include blocking communications and
access to the country by air and sea.
“All countries in the region have to
advocate for forcing the Maduro gov-
ernment to call free, democratic elec-
tions, with international observers,” he
‘Transitions demand
reciprocal sacrifices. No
one leaves power to go
to hell voluntarily’
said. Mr Ribera added that the opposi-
tion had to be pragmatic and recognise
that democratic political transitions
“demand reciprocal sacrifices. No one
leaves power to go to hell voluntarily.”
Chile’s own transition to democracy
after the 1973-90 dictatorship of
General Augusto Pinochet was negoti-
ated and drawn out, but also peaceful
and did not harm the economy, said Mr
Ribera. Human rights violators should
be prosecuted, he said, but a “witch
hunt” had to be avoided. He warned
that if the number of Venezuelan immi-
grants rose to 7-8m, as he fears could
happen next year if action is not taken,
“that will put very, very great pressure
on countries in the region and it could
have a destabilising effect”. The foreign
minister emphasised that the solution
had to be peaceful, as military interven-
tion could trigger “an explosion in
immigration that we cannot cope with”.
Chile’s hardening stance towards
Venezuela comes as Sebastián Piñera,
the centre-right president, takes on a
stronger leadership role in the region
and beyond. Santiago is preparing to
welcome delegates in December for the
United Nations Climate Change Confer-
ence, known as COP25.
Observers expect the balance of
power to shift in the region if the leftist
Alberto Fernández is elected president
in Argentina this month, replacing the
centre-right Mauricio Macri.
Mr Macri has played a leading role in
the region’s opposition to Mr Maduro. In
interviews, Mr Fernández has resisted
calling Mr Maduro a dictator, but did
express concerns about the Maduro
regime’s authoritarian tendencies.
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Wednesday 16 October 2019 ★ FINANCIAL TIMES 5

6 ★
Hong Kong goes into creative overdrive
Anti-government protesters
are using the arts as a weapon
in the battle to hold public
attention. Alice Woodhouse
and Nicolle Liu report
T
ear gas canisters billow at
her feet. Her right hand
holds an umbrella, the
other a large black flag
bearing the slogan “Free
Hong Kong, revolution now” while a gas
mask and goggles protect her from the
surrounding smoke.
“Lady Liberty Hong Kong”, the four-
metre-high statue created by an anony-
mous group formed on the internet,
serves not only as a symbol of Hong
Kong’s nearly four months of anti-
government protests, but also the
upswell of creativity in a city best
known for finance and skyscrapers.
She started out as an idea on the
Reddit-like forum LIHKG to build a
statue that could draw attention to the
movement. Hundreds volunteered
their time and a crowdfunding cam-
paign was launched. People ranging
from welders to 3D printing experts to
fashion designers (who sewed her fully
functional backpack) built “Lady Lib-
erty” within the space of a week from a
design chosen by the group.
“Lady Liberty” is modelled on a
young first aider who sustained an eye
injury from a suspected police projectile
at a protest in August. The helmet,
3M goggles and respirator she wears
echo the uniform of frontline protesters,
and have become common motifs in
much of the protest art produced since
July when demonstrations became
increasingly violent.
“What you can see in the statue are
mundane daily objects for a lot of peo-
ple. You probably won’t understand
why it’s the symbol of a major move-
ment for democracy,” says Flash,
spokesman for “Lady Liberty” standing
next to the piece at its temporary home
at the University of Hong Kong. A team
of hikers have since moved her to stand
atop Lion Rock, a hill that has come to
represent the city’s fortitude.
UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
Anti-government protests have
gripped Hong Kong for more than four
months. Demonstrations were sparked
by a now-withdrawn extradition bill
that brought millions of people on to the
FINANCIAL TIMES
ARTS
Above: ‘Lady October when face coverings at protests
Liberty’ statue were banned.
atop Lion Rock. From Action Man-sized models of
Above right: protesters, complete with leg hair and
notes on a plastic barricades, to the flurry of post-
‘Lennon Wall’. ers produced to advertise each march
Left: anti- made by a group of self-called “Otaku”,
government or geeks, Hong Kong’s graphic designers
protest last and musicians have gone into creative
month overdrive to express their discontent.
Newscom; Tyrone Siu/Reuters Such a large-scale explosion of public
art was last seen five years ago when the
streets. They have expanded into calls pro-democracy Umbrella Movement
for greater democracy in the former turned major roads into buzzing com-
British colony and an inquiry into the
police’s use of force. And the masks have
munity art projects.
But 2019’s art has turned towards
taken on greater significance since early more combative themes, such as cele-
brating the bravery of frontline protest-
ers in their gas masks with distinctive
pink filters, says Sampson Wong, an
academic and artist. It is also more col-
laborative in a way that was unimagina-
ble in 2014, reflecting the decentralised
nature of the movement — it has no
overt leader, meaning anyone online
can suggest a project for consideration.
Wong collected more than 1,000
works from the 2014 protest camps to
create Umbrella Movement Visual
Archive. While those works were mostly
focused on peace and love, in line with
Hong Kong’s adherence to peaceful pro-
tests, the pieces produced in 2019 depict
demonstrators in gallant battle poses or
batting away tear gas canisters with
tennis rackets.
Elements of the 2014 protests such as
the “Lennon Wall” of sticky notes bear-
ing pro-democracy slogans, based on a
wall of the same name in the Czech
Republic, have resurfaced in 2019, but
their nature has changed. Protesters
started similar walls across the territory
to spread their message, but these have
become targets for pro-government
groups who tear down the posters,
Wong explains.
Terfel makes a delightful Don
OPERA
Don Pasquale
Royal Opera House, London
aaaae
Richard Fairman
History is repeating itself. In the 1970s, a
much-loved Welsh bass-baritone,
Geraint Evans, was asked which opera
he would like as a reward for 25 years’
service to the Royal Opera. He chose
Donizetti’s Don Pasquale and a new pro-
duction was put on specially for him (for
those with long memories, it was the one
with all the cats).
Fast forward half a century and
another Welsh bass-baritone is in the
spotlight. Remarkably, Bryn Terfel
made his Royal Opera debut back as far
back as 1992, so he has already been
singing with the company for 27 years.
Now Don Pasquale has come his way, too,
in a new production shared with Paris
and Palermo.
It would not be helpful to push the
similarities too far. Terfel is a more pro-
digiously voiced singer, a Wagnerian no
less. He starts with almost too much
voice for the put-upon, old Don Pas-
quale, a role usually reserved for Italian
buffo basses in their later years, and is
also improbably imposing for the role.
As always, though, Terfel is marvel-
lously resourceful, playing Don
Hongkongers cannot vote for the
city’s leader, but they use their freedom
of speech to express their frustrations in
a creative way, Wong says. Any public
blunder made by an official quickly goes
viral, and graphic designers create post-
ers that are shared online and pasted
up around the city in a matter of hours.
‘The message that we
want to send out is:
what else can artists,
musicians, rational,
peaceful people do?’
Beyond the use of images to advertise
marches, the upswell in art and music
has also played an important role in sus-
taining the months-long campaign.
“People are consciously turning
works of art into the act of moving
the movement forward,” Wong says.
“Every two to three weeks it faces a bot-
tleneck, so every two to three weeks new
and creative actions are needed to
regain attention.”
“Glory to Hong Kong”, a song written
Hair circumvents the ban on masks
Pasquale like a second cousin to his Fal-
staff, not decrepit, but an ageing man
whose hopes of a new start in a happy
marriage to a young woman are woe-
fully unrealistic. He is delightfully fussy,
befuddled, irascible, disappointed, and
sings the music with a sharp, comic cut
to the Italian text.
All kinds of indignities lie in this Don
Pasquale’s path, as when Norina finds
his unwashed pyjama bottoms in the
bedroom. Damiano Michieletto’s enjoy-
able production is not cute like the one
for Geraint Evans, but sets the opera in
an astringent modern milieu. We see
only a skeletal outline of Don Pasquale’s
house, symbolic of how the character’s
pretensions are laid bare. There is some
Wednesday 16 October 2019
by a musician who goes by the name
Thomas dgx yhl, exemplifies this, Wong
says. Since its release on LIHKG, it has
been sung flashmob-style, accompa-
nied by brass bands in luxury shopping
malls in a “de facto form of collective
action”. Thomas wrote the song as the
pop hits previously adopted by protest-
ers, such as “Boundless Oceans, Vast
Skies” by Hong Kong rock band Beyond
and “Do You Hear the People Sing?”
from Les Misérables, which were popular
during the Umbrella Movement, felt
“soft and not solid”.
“The main difference is that those
karaoke songs can’t boost your morale,
they can’t build your identity, they can’t
unite the people,” he explains.
Many of the artists and musicians cre-
ating work for the anti-extradition-bill
movement remain anonymous as they
believe the protesters’ demands are
more important than personal glory,
and fear retaliation from the govern-
ment or attacks from pro-Beijing thugs.
S, a conductor with a non-profit
orchestra, brought together 150 musi-
cians and a video crew of nine to pro-
duce an orchestral version of “Glory to
Hong Kong” that has since racked up
2.6m views on YouTube. Those taking
part were eager to contribute their skills
to the wider movement, S says.
The atmospheric video shows musi-
cians in the full gear of frontline protest-
ers as tear gas-like smoke wafts over
them in a bid to show that, even in a stu-
dio, the musicians feel their freedom of
expression is being curtailed.
“The message that we want to send
out is: what else can artists, musicians,
rational, peaceful people do?” he says.
“What are the appropriate channels
still available to society that can address
our grievances?”
For some, the protests have meant
less time to create. Cantopop star Denise
Ho was a vocal supporter of the 2014
Umbrella Movement and has become a
de facto international spokeswoman for
the latest Hong Kong protesters. Ho tes-
tified before the United Nations in
Geneva on the situation, and in front of
US Congress alongside pro-democracy
activist Joshua Wong. While she now has
little time to dedicate to music, she
believes the role of art in the movement
should not be overlooked.
“You really cannot censor the mind,
you cannot censor creativity. In these
times of the internet, some sort of piece
of art or piece of music or movie that
comes out into the world, they cannot
delete it completely,” she says.
Unfortunately for “Lady Liberty”, she
appears to have become victim to oppo-
nents of the movement a day after
reaching her new hilltop home. Photo-
graphs showed the statue lying on the
edge of a cliff, splashed with red paint.
trendy play with live video and an
uproarious interlude for three puppets.
Olga Peretyatko, making her Royal
Opera debut, has a soprano of diamond-
cut brilliance for the mettlesome
Norina. Markus Werba is the quick-wit-
ted Malatesta and Ioan Hotea a nicely
youthful Ernesto, though a bit more
honey in the voice would not come
amiss. Evelino Pidò conducts with
native Italianate zing. At the end Terfel
is unceremoniously bundled into a
wheelchair and wrapped in blankets, a
reminder that this may be a comedy, but
it comes with a painful message about
getting old at its heart.
To November 2, roh.org.uk
Indignities:
Bryn Terfel
and Olga
Peretyatko
in ‘Don
Pasquale’
Clive Barda/
ArenaPAL
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Wednesday 16 October 2019 ★ FINANCIAL TIMES 7

FT BIG READ. INTERNATIONAL FINANCE

A decade of rapid growth has turned Wirecard into one of Germany’s largest companies. But internal
documents from the payments company appear to indicate a concerted effort to inflate sales and profits.
By Dan McCrum

A tale of suspect accounting practices

F
rom inside its grey corporate
headquarters in Aschheim
outside Munich, Wirecard
projects an image of one of
Germany’s leading business
success stories, a fintech champion to
rival software giant SAP. After a decade
of breakneck growth, Wirecard has
become a favourite among investors,
with a market capitalisation greater
than Deutsche Bank, placing the com-
pany in the prestigious Dax 30 index.
Yet Wirecard’s seemingly irresistible
rise has been plagued by intermittent
controversy about its accounting and
business practices. This year, white-
collar crime investigators raided Wire-
card’s offices in Singapore multiple
times in connection with allegations
that sales and profits were invented at
numerous subsidiaries across Asia. Edo
Kurniawan, the company’s head of
international reporting, was named
among six suspects.
In response, Markus Braun, Wire-
card’s Austrian chief executive, dis-
missed the problems as a local difficulty
with scant financial impact. He blamed
the payment processing company’s fast
growth and outlined a dozen measures
to improve compliance, including the
appointment of a new chairman of the
supervisory board in 2020. Wirecard’s
stock price, which initially fell 40 per
cent to €97, had recovered to about
€140, giving it a €17bn market capitali-
sation. After publication of the story it
closed yesterday at €123.
The Financial Times has published
documents which cast further doubt on
Wirecard’s accounting practices. Inter-
nal company spreadsheets, along with
related correspondence between senior
members of Wirecard’s finance team,
appear to indicate a concerted effort to
fraudulently inflate sales and profits at
Wirecard businesses in Dubai and Ire-
land, as well as to potentially mislead
EY, Wirecard’s tier-one auditor.
The decision to publish these docu-
ments follows repeated charges by
Wirecard that the FT is relying on fake
material and that its own journalism is
corrupt and suspect. The documents,
provided by whistleblowers, give the
clearest picture to date of Wirecard’s
questionable accounting practices and
business model.
In its defence, Wirecard has claimed
that FT reporters have facilitated mar-
ket manipulation in collusion with short
sellers. These allegations have been
widely circulated in the German media
and are the subject of a legal complaint
in Germany, an investigation by BaFin,
the German financial regulator, and a
probe by prosecutors in Munich.
The FT categorically rejects Wire-
card’s allegations on all counts. A
recently concluded two-month review
conducted by an external law firm, RPC,
found no evidence of collusion between
FT reporters and market participants.
Dubai partner
Established in 1999, Wirecard has been
a pioneer in the processing of digital
payments. In Germany, where consum-
ers prefer to pay in cash, it caught the
imagination of investors looking for a
blue-chip European digital champion to
match those in Silicon Valley.
Initially known for processing pay-
ments for online gambling markets and
porn sites, Wirecard purchased a bank
in 2006 and evolved into a full-service
payments operation, providing the soft-
ware and systems to plug online busi-
nesses into the global financial system.
With trillions of dollars of transac-
tions up for grabs as consumers aban-
don cash, Wirecard is jostling with huge
rivals such as Vantiv in the US and
China’s Alipay for a share of the fast-
growing market. It says it processed
€125bn in transactions last year, a rise of
37 per cent. It is projecting 40 per cent
growth in underlying earnings this year.
Over the past decade Wirecard has
fuelled its expansion by buying smaller
payment processing businesses and
groups of customers around the world,
including a 2017 move to take on 20,000
merchant clients of Citibank, spread
over 11 Asia-Pacific countries. The deal
was intended to make the company a
household name across the region.
Wirecard has also said its geographic
reach has expanded by working with
hundreds of partner processing compa-
nies, which fill in gaps when Wirecard
lacks the expertise or local authorisa-
tion to process payments itself.
A focal point of the FT’s inquiries into
Wirecard is one of these partner compa-
nies, a Dubai-based intermediary called
Al Alam Solutions, which documents
indicate contributed half of the German
company’s worldwide profits in 2016.
Wirecard Wirecard staff have described Al
attracted Alam as a “third-party acquirer”, pay-
investors ments jargon for a business licensed by
looking for a the big payment networks, such as Visa
blue-chip and Mastercard, to help retailers accept
European digital credit card transactions. Al Alam was
champion. It purportedly the spider at the heart of an
works with international web, processing vast sums
hundreds of for 34 of Wirecard’s most important and
partner lucrative clients in the US, Europe,
processing Middle East, Russia and Japan.
companies. Yet when the FT visited Al Alam’s
Below: chief Dubai office this year it became clear
executive this was a threadbare operation. A
Markus Braun former employee told the FT it had just
and Edo six or seven staff.
Kurniawan, Neither Visa nor Mastercard have any
head of record of a relationship with Al Alam,
international deepening the mystery of why Wirecard
reporting would refer business to the partner
FT montage company, given the group already has
Wirecard Processing, its own payment
processing subsidiary employing scores
of staff, nearby in Dubai.
Internal financial reports from 2016
and 2017, shared between members of
Wirecard’s finance team and obtained
by the FT, detail the business which has
supposedly flowed through Al Alam.
The documents record about €350m of
payments from 34 key clients as passing
through Al Alam, on behalf of Wirecard,
each month during the period.
Yet there are strong indications —
likely to attract attention from auditors
and regulators — that much of the pay-
ment processing attributed to these 34
clients could not have taken place.
When contacted by the FT, 15 of the
34 clients said they had never heard of
Al Alam, of which only four said they
did use Wirecard for payment process-
ing at the time. Six did not respond to
requests for comment or declined to dis-
cuss the matter, and five of the other
purported clients could not be traced or
contacted by the FT. The remaining
eight named clients appear to have shut
down completely at the time they were
appearing in Wirecard’s books. In early
2017, for example, Al Alam is shown in
the documents to have been processing
about €46m of payments every 30 days
on behalf of Wirecard for an Irish pre-
paid card business called Cymix Pre-
paid. Yet Cymix was liquidated in 2012,
according to Irish corporate records.
Another client, US payments proces-
sor CCBill, sent Al Alam €24m of dollar,
yen and euro payments each month to
transact, according to Wirecard finan-
cial reports. However, CCBill’s chief
operating officer, Jake Powers, told the
FT the company had no connection to
Al Alam “of any kind”. As a payments
industry professional, he said he would
be expected to know where and how
CCBill’s transactions were being routed.
Separately, a Philippines-based gam-
bling business called Gaming Network
Solutions is on the Wirecard books for
its CardSystems subsidiary as having
€2m of payments processed monthly by
Al Alam through the whole of 2017.
But Fred Fateh, founder and chief
executive of Gaming Network Solutions,
said his company’s three-year relation-
ship with Wirecard ended when Rod-
rigo Duterte was sworn in as president
of the Philippines vowing to crack down
on gambling: “Exactly June 30 2016, we
stopped our real money operations,” he
told the FT. Mr Fateh’s need for pay-
ment processing had ended when his
business switched to games played for
points, not cash. Either way, he had
never heard of Al Alam.
Oversight doubts
Seemingly defunct entities still seeing
their business booked in the Wirecard
spreadsheets during this period include
Bank de Binary, a financial firm which
closed in March 2017 following regula-
tory pressure; Molotok, a former Rus-
sian competitor to Ebay; and Piku, a
shuttered coupon business from Japan.
Together these findings raise doubts
on whether substantial sales and profits
were actually travelling through Al
Alam to Wirecard — or were simply
invented. Further questions arise based
on internal correspondence between
Wirecard executives and the relation-
ship with EY, its tier-one auditor.
For a decade, EY’s reputation as one of
the Big Four worldwide accountancy
and auditing firms has helped to rebuff
criticism of Wirecard’s accounts and
business practices. Its signature on the
financial statements in April this year
helped to convince many investors that
the effort by Mr Braun, Wirecard CEO,
to minimise the Singapore accounting
scandal — first reported by the FT — was
credible.
Three spreadsheets — internal finan-
cial reports published today by the FT,
with their accompanying correspond-
ence — cast doubt on EY’s oversight.
They show how Wirecard’s finance
team used the now-suspect relationship
with Al Alam to justify revenues, profits
and asset values to auditors.
The supposed Al Alam business was
funnelled through two thinly-staffed
Wirecard subsidiaries, which rank
among the technology group’s largest
and most profitable in financial terms,
according to the limited German-
language public disclosure available.
One is CardSystems Middle East in
Dubai, which whistleblowers said was in
effect a one-man operation run from an
apartment in the Burj Khalifa, the
world’s tallest building. The other is
Wirecard UK & Ireland, whose nonde-
script office in Dublin housed a dozen
staff, according to whistleblowers.
Correspondence between senior exec-
utive members of Wirecard’s finance
team underlines just how central Al
Alam was to the profits claimed for
these two key subsidiaries.
Alongside the spreadsheets, the FT
has published a selection of this corre-
spondence to help to demonstrate the
apparent authenticity of the accompa-
nying documents.
According to one of the spreadsheets,
shared between executives in July 2017
and titled “Übersicht Dritt-Acquirer”
(overview of third-party acquirers), Al
Alam was responsible for €265m of
revenues in 2016 and an “ebitda-effekt”
of €173m. That is equivalent to a quarter
of Wirecard’s sales that year and more
than half of its earnings before interest,
tax, depreciation and amortisation.
Somehow, the €4.2bn of payments
routed through Al Alam in 2016 pro-
duced more profit for Wirecard than the
rest of the €62bn-worth of transactions
it processed that year, if the figures in
the overview are taken at face value.
The documents raise important ques-
tions about EY’s oversight of Wirecard’s
relationship with Al Alam and the integ-
rity of revenues flowing through the
Wirecard UK & Ireland and CardSys-
tems Middle East subsidiaries.
Since 2016, Wirecard has claimed an
exemption used by multinational
groups to not file accounts for Irish sub-
sidiaries, by guaranteeing their liabili-
ties. The group’s Irish businesses are
audited by BCK, a Dublin-based firm.
In the case of CardSystems, Mr Braun
told investors this year that the subsidi-
ary came under EY’s group audit. It
emerged in a September bond prospec-
tus that CardSystems had no local audi-
tor in Dubai. The company said it has
now appointed one.
The group’s Munich finance team
appears to have prepared documents
for EY, conducting the group audit,
which said CardSystems earned €69m
of profit from €1.6bn of payments proc-
essed by Al Alam in 2017. Details of the
underlying customer business were
included.
These figures appear in a financial
report, titled “Q4 2017 Monitoring
CR_intern”, sent in April 2018 to Mr
Kurniawan, the head of international
reporting, by Lars Rastede, Wirecard’s
manager of mergers and acquisitions. It
was the final days of that year’s audit,
and in a subsequent Skype conversation
Mr Rastede said “there is massive effort
flowing into that big table!”.
Mr Rastede’s spreadsheet detailed
profits at a wide range of Wirecard
businesses. Mr Rastede said it had been
specifically requested by Andreas
There are Loetscher, the EY partner who signed
Wirecard’s group accounts days later.
strong EY declined to comment, citing client
indications confidentiality.
Al Alam said it operates “in full
that much of accordance with all applicable laws,
the payment rules and regulations” and “was not
involved in any alleged process to fake
processing revenues or profits at Wirecard”.
attributed to Wirecard rejected any allegation that
these 34 financial data were invented by its staff.
It said all customer relationships were
clients could subject to regular audits, and that cus-
not have tomers usually connect and contract
only to Wirecard, which integrates the
taken place services of various parties.
The group initially responded to the
FT’s questions about earnings attrib-
These uted to Al Alam by dismissing docu-
ments described in this article as fake.
findings cast Wirecard later elaborated on this, say-
doubt on ing that financial reports “usually only
present an aggregated view across clus-
whether ters of clients”, and said client names on
substantial authentic company spreadsheets may
not be reliable either. Customer incor-
sales and poration data “is rarely represented in
profits were internal financial reporting or is masked
actually by aliases”, it said.
travelling Deflecting criticism
through Since the FT revealed this year that Edo
Kurniawan, the Singapore executive
Al Alam to suspected of cooking Wirecard’s books
Wirecard — in the region, was still in his post and
working on the annual audit, the Ger-
or were man group has attempted to undermine
simply the credibility of the FT’s reporting.
Its public statements on the matter
invented have been inconsistent. It said the FT’s
first story about Singapore was false,
and that “no material compliance find-
ings” arose. Wirecard impugned the
motives of whistleblowers, then months
later announced that some staff may
face criminal liability in Singapore for
their actions.
Wirecard also denied that its offices
had been raided by the Singapore
police, claimed to be assisting the
authorities, then challenged the investi-
gation in court. Singapore prosecutors
called the company’s failed legal
manoeuvre “an abuse of process” and
questioned its willingness to co-operate
with the probe. Wirecard has said on
several occasions that the FT has relied
on fabricated documents. At the same
time it has sued the FT in German civil
court, alleging misuse of company
secrets and seeking damages.
The FT has raised questions about
Wirecard’s accounting and practices
since 2015, while the company has
repeatedly cast such criticism of its busi-
ness as the work of market manipula-
tors. Germany’s financial regulator
appears to have been sympathetic,
imposing an unprecedented ban on
More on
short selling bets against Wirecard for
Wirecard two months this year.
Download a zip Investors and regulators are left to
file of internal consider a question of credibility. Are
documents the internal documents published today
obtained by by the FT really fake, or should that
the FT, and read description be applied to much of the
Dan McCrum’s
explainer on the profits at one of Germany’s largest and
files most popular companies?
Additional reporting by Leo Lewis
ft.com/wirecard
See Companies & Markets

8 ★
WEDNESDAY 16 OCTOBER 2019
Prison sentences cannot
solve Catalonia’s crisis
Political reconciliation is needed in Spain, even if trial was legitimate
It has been two years since Catalonia’s
failed independence push but the
wounds from that ill-advised adven-
ture continue to fester. On Monday,
Spain’s Supreme Court passed tough
sentences against politicians and activ-
ists behind the independence referen-
dum held on October 1 2017 in contra-
vention of the Spanish constitution.
Nine were found guilty of sedition and
four of them were also convicted of
misusing public funds. They were
jailed for between nine and 13 years,
triggering protests in Catalonia as inde-
pendence supporters blocked roads
and railways and clashed with police at
Barcelona’s airport.
The trial was the most important
since Spain’s return to democracy in
the late 1970s. It took place against the
backdrop of a highly-charged general
election in April. The verdict fell less
than four weeks before Spaniards
return to the polls on November 10 to
break the parliamentary logjam that
has held since then. That is not to say
that the trial itself was political.
A democracy that respects the rule of
law is required in the public interest to
hold to account anyone who under-
takes an illegal act. Spain is no excep-
tion. There is little reason to believe
that the trial in the Supreme Court was
anything other than a fair process. The
judges dismissed charges of rebellion —
demanded by the chief prosecutor and
cheerleaders on the Spanish nationalist
right — that could have carried a jail
term of up to 25 years.
Rebellion did not stack up, they said,
because the secessionists knew their
actions would not succeed and were
simply a “device” to put pressure on the
government to agree to a formal plebi-
scite. If so, that makes it harder to jus-
tify the inordinately long sentences for
the crime of sedition that the court
handed down, even if this is what the
law mandates. The sentences will
Why a ban on air miles
will not go the distance
Bolder policy steps are required to meet ambitious climate targets
What is the point of air miles? For
harried executives, they are one of the
few things that justify a globe-trotting
existence, a chance to make amends to
the family with a free holiday flight. For
airlines, they are a valuable marketing
tool that helps to secure customers’
loyalty. For environmental activists,
they are a thoughtless but serious
injury to the health of the planet which
should be banned.
That final view has now been given
some intellectual backing in an inde-
pendent report by Imperial College for
the UK’s Committee on Climate
Change. The report argues air miles
schemes should be banned as they
encourage excessive flying. It recom-
mends instead an escalating “air miles
levy” to discourage people from flying
too much, with the income invested in
low-carbon technology. According to
the report, occasional flyers or family
holidaymakers would not be penalised.
The move would affect the 15 per cent
of the population responsible for an
estimated 70 per cent of UK flights.
It is an eye-catching proposal. Fre-
quent flyer schemes have become both
a lucrative business and a draw for
travellers since the launch of the first in
1979. There is evidence of people abus-
ing the system: taking more flights sim-
ply to maintain their status as “privi-
leged travellers”. So-called “mileage
runs” are a common way to increase
points to retain access to privileges.
As the report notes, if the UK is to
have a chance of meeting its legal com-
mitment to achieve net zero carbon
emissions by 2050, lifestyles will have
to change, especially in transport. In
Nottingham, a workplace parking levy
has proved popular because the funds
raised have been invested in public
transport and air quality has improved.
Aviation is likely to be the biggest
source of UK emissions by 2050 so pro-
posals to limit demand growth need
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almost certainly be appealed in Spain’s
constitutional court and then the Euro-
pean Court of Human Rights. The
longer it is strung out in the courts, the
longer it will take to kick-start a politi-
cal dialogue that could lead to a lasting
solution — one that can reconcile Cata-
lan demands for self-government with
Spaniards’ adherence to national unity.
Many Spaniards, horrified by the
separatists’ disregard for the constitu-
tion, and the rights of half of Catalonia
opposed to independence, will applaud
the verdict. Many Catalans regard their
former leaders as political prisoners
and martyrs to the cause. The risk is
that these sentences will radicalise
secessionist opinion and amplify the
Spanish nationalist backlash against it.
The anger on both sides of the Cata-
lan divide has fed twin processes of
political fragmentation and polarisa-
tion. These have discouraged compro-
mise and collaboration, and made it
harder to form a stable national gov-
ernment. Catalan nationalist parties
were once political kingmakers in
Madrid. Now no one will deal with
them. Leftwing and rightwing blocs
cannot command a majority on their
own,butdistrustoverthe Catalan ques-
tion has prevented them from working
together. Next month’s general election
will be the fourth in four years.
Before the Supreme Court verdict,
Spain’s mainstream parties had begun
to show signs of moderation. Less
threatened by the far-right, the
conservative People’s party no longer
promises to impose immediate direct
rule on Catalonia. The fiercely
anti-Catalan nationalist Ciudadanos is
now open to supporting the Socialists
of prime minister Pedro Sánchez, who
has espoused engagement and
conciliation with Catalan leaders. It
would be a tragedy if Mr Sánchez,
assuming he is re-elected, was deterred
from such a course.
consideration. Other policies, however,
would make more inroads than an
attack on frequent flyer schemes. Less
polluting modes of transport such as
rail are still, on average, more expen-
sive than flying with a low-cost airline.
When a return flight from London to
Edinburgh can cost less than £100,
there is little incentive to take the more
expensive — and slower — train.
Policymakers in Europe are consid-
ering including aviation in a review of
energy taxation. Taxing airline fuel has
been mooted. Yet in a sign of how diffi-
cult some countries are finding it to put
national interests aside, the EU’s Euro-
pean Investment Bank yesterday again
postponed a decision on whether to
stop funding natural gas projects fol-
lowing pushback from Germany.
To meet its 2050 emissions goals the
UK government should prioritise tack-
ling those areas that are big contribu-
tors to emissions today. One of the most
thorny issues is domestic heating.
Weaning British households off the gas
boilers that warm their often draughty
homes should be a priority. Experts
calculate that this would require
replacing gas boilers with greener heat-
ing systems in at least 15,000 homes
each week for the next 31 years. Under
current policies, only a couple of hun-
dred homes a week are forecast to
move away from gas.
New energy efficiency measures for
business published yesterday, along-
side promises of a “first-of-a kind plan”
on how to cut transport emissions, are
welcome but light on detail. Three
months after the UK committed to net
zero emissions, bold policy is still miss-
ing. A package of domestic and interna-
tional measures — one that includes
more effective carbon pricing as well as
significant investment into areas such
as electrification — will be needed if the
UK is to stand a chance of meeting its
ambitious target.
FINANCIAL TIMES
Letters
You don’t live with us, so you don’t know us
Further to Miranda Green’s Notebook
column “Bridging local divides could
be a balm for bipolar politics” (October
10): as a teenager in the 1960s, I typed
voter lists for my father, who was the
4th Ward committeeman for the
Democratic party in our small town in
the Midwest, and I remained a party
loyalist for years. No more, though.
Both parties have alienated the mass of
voters, thanks to their fratricidal
How to do meddling
well is the great question
Arguing against Senator Elizabeth
Warren’s “accountable capitalism”,
Margaret McGirr succinctly
summarises the case for free-market
economic policy (Letters, October 11):
“Thousands of individuals make
choices based on the conditions they
face, and there is an outcome that is
the consensus view. This brilliant and
efficient synthesis of opinions and
desires of the many disappears in a
market that is meddled with for the
purpose of ‘making it work’.”
She is right that a decentralised
market economy can produce superior
results than an economy with
“meddling” in the form of Sen Warren’s
“accountable capitalism”. But only in a
theoretical universe where all the
obstacles to that superiority have been
cleared away. In the real world,
capitalist economies closer to Ms
McGirr’s description produce more
highly concentrated income
distribution and higher levels of health
and social problems than those closer
to social democracy. Many millions of
people in the west would now be better
off if governments had done more
meddling to restrain financial markets
in the years before 2008. The east
Asian capitalist economies have
powered their way up to the world
technological and prosperity frontier
with extensive meddling in markets.
Now China is following them, with even
more meddling.
The great question — including for
post-Brexit Britain — is how to do
meddling well, rather than how to do it
less.
Robert H Wade
Professor of Global Political Economy,
London School of Economics, UK
Extortionate rates are
not confined to ATMs
My thanks to Edward Laxton (Letters,
October 11) for highlighting the issue of
dynamic currency conversion (DCC)
spreading across ATMs when
withdrawing cash overseas. The
extortionate foreign exchange rates
that are imposed for cash withdrawals
in local currency is a heinous crime
that exploits customers and one we
have campaigned against for some
time.
However, it is worth noting that DCC
is not restricted to ATMs alone — many
hotels, restaurants, shops and the
travel industry in general are all
incentivised by their bankers to
confuse travellers into opting to “pay in
your home currency”. One solution is
to use a dedicated multicurrency
payment card.
At Caxton, we have been working
with Mastercard to prevent DCC being
applied to our multicurrency cards and
we welcomed the new Mastercard
What Trump
and Obama
have in common
on Syria
Notebook
by Roula Khalaf
conflict and refusal to govern.
But current divisions are overhyped
by the media and academics.
Helicopter noise and opposition to
officials’ sellout to Amazon are bigger
hot button issues here than President
Donald Trump. The layers of
interaction and co-operation among
“locals” belie tropes about America
tearing itself apart. My Tuesday night
jam session features lefties, centrists,
ruling that came into effect in April this
year that prohibits currency
conversion charges on dedicated
Mastercard Travel Cards. While this is
a significant step in offering some
protection for consumers, there
continue to be rogue traders who
overcharge despite the ruling. I would
encourage our cardholders to inform
us directly of such cases so we can
address these concerns.
Rupert Lee-Browne
Chief Executive,
Caxton,
London SW1, UK
President Carter
made me cringe
Michael Skapinker is spot on about
linguistic decay, especially in former
colonies (“You’ve got another thing
coming? Or another think?”, October
15). As a Congressional intern on
Capitol Hill at the time of President
Jimmy Carter’s inauguration, I cringed
at the former peanut farmer’s tendency
to go “nucular”. Dismayed at how
rapidly this was taken up by his
electorate, I launched my own
“nuclear” defence, only to be dismissed
as a picky Limey.
A few years later, along came his
nemesis, the nation of Eye-ran, but by
then I was “safe home” in the Old
Country.
Peter Grimsdale
London SE21, UK
Two extremes with
a dark joint history
Janan Ganesh (“The coming alliance of
populists and greens”, October 10)
overlooks the long, and often dark,
connection between environmentalists
and populists.
The belief in a fast-approaching
dystopian future and the urgent need
to avoid it by returning to a simpler
society bridges environmentalist and
populist extremes. This return often
It was April 2017 and the world was
horrified by a chemical attack on the
town of Khan Sheikhoun in
northwestern Syria. Donald Trump,
moved by pictures of dying children,
proclaimed that despite his opposition
to American involvement in Middle
Eastern wars, he was a flexible person.
“These heinous acts by the Assad
regime cannot be tolerated,” he said.
“The US stands with our allies across
the globe to condemn this horrific
attack.”
Within days, the US launched cruise
missiles on a Syrian military base.
Bashar al-Assad, the Syrian leader
held responsible, was a “monster”, the
American president concluded.
That same monster is now the main
beneficiary of another act of flexibility
by Mr Trump. Last week, the US
president reverted to instinct.
Without consulting anyone, he
decided to withdraw the small US
force in Syria, in effect providing a
green light to Turkey to launch an
assault on the US’s Kurdish allies.
Abandoned by the US, with whom
they had fought to root out Isis from
northeastern Syria, the Kurds’ choice
was destruction or survival. On
Sunday, opting for the latter, they
turned to the regime in Damascus,
inviting Mr Assad’s forces to the north
to protect them from Turkey.
With his impulsive move — it was
over pressure for a similar withdrawal
that his then secretary of defence, Jim
Mattis, had resigned back in
December — the US president
delivered the latest act of American
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
and the apolitical all singing and
playing piano, sax and trumpet in
musical and non-musical harmony.
Academics and journalists don’t live
with us, so they don’t know us. A 21st-
century version of James Agee and
Walker Evans’ Let Us Now Praise Famous
Men is needed. The ties that bind are a
lot stronger than is being reported.
Jim Sanders
Burke, VA, US
includes unwinding democratic
capitalism. Consider the “Green New
Deal” for the environmentalist or trade
protectionism for the populist.
The joining of environmentalists and
populists also marks the history of
nationalism, fascism and eugenics. This
dimension was manifest in the pre-
shooting missives at the Christchurch,
New Zealand and El Paso, Texas
tragedies. Those murders wove
extreme environmental doom and
gloom with populist blood and soil
agitprop.
Environmentalism and populism did
not cause that or any other violence.
But it is important to recognise the
length individuals will go to avoid the
perceived apocalypse; as public debate
grows more alarmist so do advocates,
and we have seen all of this before.
Scott Dziengelski
Washington, DC, US
It is possible! But who will
be carrying the burden?
In several recent reports, including
“Argentina woes threaten Macri
election hopes” (October 14), you
translate the campaign slogan “Si! Se
puede!” as echoing Barack Obama’s
“Yes, we can!” In fact, that expression
has already been taken by Spain’s
leftwing party, Podemos. The phrase
used by President Mauricio Macri is
better translated as “Yes! It is
possible!” The use of the indefinite
pronoun leaves open the question as to
who is expected to carry the burden.
The inference that economic
adjustment may be achieved at
someone else’s expense is
unfortunately close to the bone in
terms of Mr Macri’s policies, and is
reflected in his dismal showing in the
polls.
Ffinlo Shakya
London W1, UK
Whatever the entity, legal
structure is important
Dan Corry (Letters, October 8) is
wrong to criticise Baroness Tina
Stowell, chair of the Charity
Commission, who calls for clear
separation between charities, the
private sector and government.
A charity’s beneficiaries don’t care
about its legal structure, Mr Corry says,
only its “social impact”. Yet he seems to
ignore how the legal structure of an
entity determines the required
transparency, accountability and
public reporting. Further, effective
regulation is only possible with well-
defined entities.
Charitable status, with its many
advantages, must be appropriate in
each case. Thus charities by how they
operate need to show they deserve
such status.
Dr Alex May
Manchester, UK
mismanagement of Syria’s crisis.
The betrayal of Kurdish militants,
whom Turkey oppose because they
are linked to a group it has fought for
decades, will rank high up there with
Barack Obama’s notorious “red line”
fiasco. This was his decision in 2013
not to punish Mr Assad for his use of
chemical weapons, the red line
previously set by the US. The irony is
that Mr Trump struck Syria four years
later in part to prove that he was more
daring than his predecessor.
Mr Trump is not always wrong in
his assessments — and neither was Mr
Obama. Americans are tired of
endless Middle Eastern wars and there
is probably no reasonable chance of
reconciliation in Syria. But allowing
conflicts to fester is not an option
either. Retreats, when necessary, also
can be managed to protect allies and
prevent chaos. Mr Trump, however, is
committing the same mistake as Mr
Obama, creating a vacuum that will be
filled by enemies of the US.
In Mr Obama’s case, US hesitation
on Syria contributed to the emergence
of Isis. Now Mr Trump has
jeopardised the successful campaign
against the terrorist group, risking the
escape of Isis fighters and associates
from Kurdish-controlled camps. And
he has opened the way for a brutal
Syrian regime to reassert itself across
Kurdish-controlled areas.
There are other implications that
Mr Trump apparently had not
thought through. When Mr Assad
wins, so does Iran, the closest Syrian
ally responsible for propping up the
Wednesday 16 October 2019
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
We have more to gain than
lose from open markets
I disagree with a number of assertions
made in your editorial “Huawei’s
dominance in 5G should be challenged”
(October 11), as well as its conclusions.
By any definition, Huawei is not
dominant in 5G nor the global telecoms
equipment market. The European
Commission assesses market
dominance based on the length of time
that market share is held. Given that
5G is an emerging technology, it is hard
to argue that any company could have
achieved dominance in this market.
And indeed, as your editorial
highlights, one study suggests that
Huawei has supplied 28 per cent of
global telecoms equipment in the past
12 months, falling well short of the 40
per cent mark at which dominance is
often assumed in European
competition law and economics.
Moreover, when you consider the
next global vendor of telecoms
equipment has a 27 per cent market
share, just 1 per cent less than Huawei,
this hardly constitutes dominance. You
could say Huawei is a technology
“leader” in 5G, but to argue we are
dominant is false.
Telecom operators use equipment
from multiple vendors — not only to
foster competition that keeps prices
down, but to avoid vendor lock-in,
where the operator becomes overly
dependent on a single supplier.
Because of this “multi-vendor”
environment, Huawei is unlikely to
dominate the 5G equipment market,
now or in the future.
You also raise a number of other
questions which Huawei has answered
on numerous occasions. You write that
Huawei is “apparently privately
owned”. Huawei is privately owned and
there is no evidence to suggest
otherwise. You also suggest that
Huawei has achieved global scale in
part through cheap Chinese finance. In
fact 80 per cent of every dollar of our
financing comes from non-Chinese
global banks. Huawei’s success lies
instead in its employees’ hard work,
sacrifice, dedication and significant
annual investment into research and
development.
You are, however, correct to
highlight that Huawei insists “it would
never allow itself to be used” by China,
or any government, to gain access to
businesses’ data. Huawei has never
received such a request and we would
categorically refuse to comply if we did.
We have supplied equipment to
European telecoms networks for 15
years without being involved in a
serious cyber security incident or
network outage. Huawei’s equipment
does not pose a threat to information
security. Over the past year, the Trump
administration’s campaign against
Huawei has led many commentators to
suggest that a tech cold war between
the US and China is inevitable. Rather
than thinking about isolation,
policymakers should work with
industry to develop strong cyber
security standards and robust
monitoring mechanisms that apply
across the board.
We all have much more to gain from
maintaining open markets for
technology than we have to lose. With
this goal in mind a more balanced
discussion about market prominence,
as opposed to incorrect assertions on
dominance, would be helpful.
Victor Zhang
President, Global Government Relations,
Huawei Technologies
Damascus regime. Iran is the only
state that the US president has
consistently sought to undermine.
His “maximum pressure” policy,
however, seems to end at the Syrian
frontier.
Russia too is gaining from the chaos
unleashed by Mr Trump. Moscow has
stepped in to reinforce its position as
the powerbroker in Syria, negotiating
the deal between the regime and the
Kurds. Mr Trump may be an admirer
of Vladimir Putin, the Russian
president, but official US policy does
not include bolstering Russian
influence in the Middle East.
Also unforeseen by the president
was the emerging new crisis between
the US and Turkey. After giving Recep
Tayyip Erdogan a green light for a
military onslaught against the Kurds,
Mr Trump was forced to manage the
outrage of his Republican allies in
Congress. His response on Monday
was to slap sanctions on Turkish
officials and threaten to double tariffs
on steel exports.
As this Trump-made catastrophe
unfolds, the president is discovering,
too late in the day, the value of US
power: a small force of 1,000 US
troops had a considerable impact on
the ground, keeping the peace in
northeastern Syria and protecting
Kurdish militants who were
instrumental in defeating Isis. Such is
the authority of the US when it
chooses to exercise it. And such is the
havoc wreaked when it withholds it.
roula.khalaf@ft.com

Wednesday 16 October 2019
Rodgin
Cohen
W
hy do companies exist?
Debate has sharply
increased recently in
academic, political and
legal circles about the
fundamental “purpose” of corpora-
tions. Now the business community
itself is joining the conversation.
The argument has focused on
whether companies exist solely to
advance the interests of their equity
investors, a theory known as “share-
holder primacy”, or whether corpora-
tion should also serve other constituen-
cies or stakeholders, such as employees,
customers and communities.
This debate often bogs down because
it involves both legal and policy consid-
We are playing
with fire in a
wooden home
Martin Wolf Economics
A synchronised global slowdown,
fuelled partly by uncertainty, is
posing problems for policymakers
D Trade leads the industrial slowdown
on’t do stupid shit.” With
the last word turned
demurely into “stuff”, this
became known as the
“Obama doctrine”. It
reflected the lessons Barack Obama had
learnt from his presidential predeces-
sor’s unnecessary Iraq war. For many,
the doctrine was defeatist. Today, I see
its merits. It would be wonderful to see
intelligent action in response to our
many challenges. Yet, today, application
of the Obama doctrine would be a relief.
This is true, not least, for the world
economy. As Kristalina Georgieva, the
new managing director of the IMF, said
in her curtain raiser for this week’s
annual meetings in Washington DC: “In
2019, we expect slower growth in nearly
90 per cent of the world. The global
economy is now in a synchronised slow-
down.” Joint research by the Brookings
Institution and Financial Times is
bleaker still, describing our situation as
“synchronised stagnation”.
What is driving this slowdown, partic-
ularly stark in industry and trade? A big
part of the answer seems to be rising
uncertainty. This, argue the Brookings
authors, is due to the “persistent trade
tensions, political instability, geopoliti-
cal risks, and concerns about the limited
efficacy of monetary stimulus”. Such
uncertainty has, notes Gavyn Davies,
become “entrenched”. (See charts.)
In its latest World Economic Outlook,
the IMF forecasts growth of world out-
put at just 3 per cent this year, down
from 3.6 per cent in 2018. In the high-
COMPANIES
Izabella
Kaminska
R
ide-hailing app Uber
revealed last week it is talk-
ing to HM Revenue & Cus-
toms over a potentially nasty
UK tax issue. As accounts for
its London subsidiary, filed last week,
highlight, the group “is involved in an
ongoing dialog [sic] with HMRC, which
is seeking to classify the Uber Group as a
transportation provider”.
The liability stems from a 2018 land-
mark ruling that established Uber
drivers were “workers” and not self-
UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
It benefits shareholders to consider the public interest
erations, and the two are often con-
fused. In addition, the two views —
shareholders versus stakeholders — are
described as antithetical.
In fact, there need not be a divergence
between a legal regime of shareholder
primacy and a corporate purpose that
takes into account multiple constituen-
cies. The two can be and should be syn-
thesised.
There is a legal issue of fiduciary duty:
whose interests are the directors
required to put first — and a policy issue:
what is the board’s judgment as to how
best to serve those interests? Neither
prevents directors from considering the
impact of her or his decisions on other
stakeholders. In fact, if the board fails to
consider the impact of its decisions on
other constituencies, the results will
generally fail to advance the sharehold-
ers’ best interests as well.
Most major US corporations are
incorporated in Delaware or other
shareholder primacy states where
income countries, aggregate growth is
forecast at 1.7 per cent, down from 2.3
per cent last year. In emerging econ-
omies, the decline is from 4.5 per cent to
3.9 per cent this year. Growth of the vol-
ume of world trade is forecast at just
1.1 per cent this year, down from 3.6 per
cent last year. This is far below the
growth of output: it signifies deglobal-
isation, with respect at least to trade.
Crucially, risks are all on the down-
side. The trade conflicts between the
US and its principal trading partners
might get worse. If so, integrated supply
chains, not least in high-tech products,
could be badly disrupted. Brexit may be
chaotic. Geopolitical risks also abound,
especially in the Middle East, but also in
Asia. Above all, relations between the
US and China are worsening. Significant
financial fragilities exist too, notably the
high debt of non-financial corporates.
The threat of cyber attacks remains, as
does mega-terrorism. We persist in fail-
ing to tackle climate change.
Depressingly, much of what threatens
the world economy is due to “stupid
stuff”. Donald Trump’s trade policy is
wrecking the underpinnings of the post-
war trading system, thereby creating
huge uncertainty, in pursuit of the silly
aim of bilateral balancing. Brexit is stu-
pid: it will destroy a fruitful partnership
with the UK’s neighbours and partners.
The burgeoning friction between Japan
and South Korea is stupid, too: it weak-
ens both countries in a region ever more
dominated by China.
We are collectively playing with fire.
Uber is a test case for taxing digital platforms
employed. If Uber fails to convince the
UK Supreme Court to overturn the deci-
sion, the company could owe 20 per
cent value added tax on all bookings.
The company said in its filing that the
tax would be applied both “retroac-
tively and prospectively”. Hence, pre-
sumably, “the dialogue” with HMRC —
even though officially HMRC is not
encouraged to cut retrospective sweet-
heart deals with corporations.
The tax and legal campaigner Jolyon
Maugham has long argued that the
ambiguity over the company’s
employer status has led to unpaid VAT
worth as much as £1.1bn. His non-
profit, the Good Law Project, launched a
judicial review proceeding against
HMRC this May seeking to force the tax
authority to evaluate whether more
could be done to stem the losses.
But the Uber disclosure indicates
★ FINANCIAL TIMES
Opinion
directors owe fiduciary duty to the com-
pany and its shareholders. Half of all
publicly traded companies are in Dela-
ware alone. But 44 states permit direc-
tors to consider the interests of constitu-
encies in addition to shareholders. Most
often this is only permitted during a
The corporate purpose
debate makes a false
distinction between
investors and everyone else
merger or acquisition, but some states
allow directors to consider stakeholders
in a broader range of decisions.
In addition, Delaware and a number
of other states allow businesses to
organise themselves as “public benefit
corporations” with charters that allow
for the public benefit to be a stated
objective of the organisation. No major
3-month average of annual % change
Industrial production World trade volumes
Manufacturing PMI*: new orders (deviation from 50)
2015 2016 2017 2018
Source: IMF * Purchasing managers’ index **Purchasing power parity
Worse, we are doing so while living in a
flammable building. As Lawrence Sum-
mers tells us, the danger is not so much a
global economic slowdown, as the diffi-
culty of doing much in response. In this
context, the recent shift in Federal
Reserve policy, towards lower rates, and
the associated decline in interest-rate
expectations are particularly telling.
Even in the US, it was impossible for the
Fed to raise the short-term rate above
2.5 per cent in this cycle, before cutting
it. In other big high-income economies,
Depressingly, much
of what threatens
the world economy is
due to ‘stupid stuff’
HMRC is finally taking action. This is
definitely a step forward. But it is now
vitally important that the tax authority
does not offer to negotiate a settlement.
That would signal it is acceptable for
companies to use uncertainties about
VAT avoidance is giving
online marketplaces
an edge over bricks and
mortar suppliers
legal status to gain big advantages
against VAT-paying competitors. It
would also reinforce the notion that
there is one rule for disrupter corpora-
tions and another for everyone else.
Uber declined to comment on any dis-
cussions with HMRC but said it will
corporation has adopted such a charter,
but the existence of this option makes
clear that shareholder primacy is the
“default” standard for ordinary compa-
nies.
Even so, there should be no question
that the interests of other constituencies
are directly relevant to the creation of
value for a corporation and its stock-
holders. The success of a company is
highly dependent on its workforce.
Therefore company decisions on issues
such as diversity programmes, equal
pay, minimum wage and healthcare,
retirement and other benefits are not
only important to workers. Rather they
can lead to substantial shareholder ben-
efits by enhancing the company’s repu-
tation as an employer of first choice and
helping it to attract and retain top qual-
ity employees.
More broadly, some big institutional
investors — and some smaller ones —
now expect companies to take into
account the public interest. Many
Uncertainty is rising
Global economic policy
uncertainty (weighted by
GDP at PPP**)
400
5 South Korea
350
4 600
3 300
2 250
1 200
0 150
-1 100
2019 2016 2017
Sources: Baker Bloom Davis index of global economic policy uncertainty; IMF
the room for a conventional policy
response to a slowdown is still more
limited.
Importantly, this tells us that struc-
turally deficient aggregate demand, on
which some of us have been writing
since before the 2007-08 financial crisis,
remains pervasive. This forces us to rec-
ognise not just the “nationalist-populist-
protectionist” stupid stuff noted above
but, as lethal, the “austerity-as-secular-
religion” stupid stuff. This shows itself
not only in terror of aggressive mone-
tary policy, rightly rebuffed by former
president of the European Central Bank
Jean-Claude Trichet, but in the refusal
to accept the alternative, namely, fiscal
policy. People are petrified of govern-
ment borrowing even though lenders
are prepared to pay for the privilege.
It is elementary economics that prices
always fulfil its tax obligations in any
country in which it operates.
However, Uber is not the only digital
platform provider to have found ways to
avoid paying taxes through clever struc-
turing. Up to now, public attention has
focused on the use of offshore domiciles
by companies such as Apple and Google
to cut corporation tax. But that over-
looks the role VAT avoidance has played
in empowering platforms to destroy the
high street.
Richard Allen, head of the campaign
group Retailers Against VAT Abuse
Schemes, has long argued that VAT
avoidance is one of the most important
factors giving online marketplaces such
as Amazon and eBay an edge over more
traditional bricks and mortar suppliers.
As with Uber, legal status comes into
it. Marketplaces are generally not con-
sidered to be direct suppliers of goods.
customers feel the same way. That could
lead a board to decide that it is in the
best interests of shareholders for the
corporation to be recognised as a good
public citizen.
Likewise, as we have seen time and
again, reputational damage is one of the
worst things that can happen to a com-
pany’s share price. A reputation takes
years to earn and a blink-of-the-eye to
lose. Actions taken by a board to build
and preserve the company’s reputation
will almost always be in the sharehold-
ers’ best interest.
This debate over corporate purpose
also papers over another difficult chal-
lenge for boards and managers: the
interests of different constituencies are
not always aligned. The choice is not
always shareholders versus stakehold-
ers but sometimes among stakeholders.
Consider the decision on whether or not
to decommission, or finance, a major
coal fired electric generating facility.
Maintaining the facility could harm the
Tech supply chains have increasingly
US trade policy relied on China
uncertainty China’s value-added share embedded in trading
partner final demand (%)
800 US
400
200
0 0
2018 2019 2005
Source: IMF
matter. The astonishing fact is that the
six largest high-income economies,
including now even Italy, can borrow for
30 years at a fixed nominal rate of close
to 2 per cent, or less, and so at zero-to-
negative real rates, provided central
banks deliver on their inflation targets.
One has to be desperately pessimistic
about growth prospects to believe it is
impossible to manage substantial bor-
rowings, on such terms. This is espe-
cially true if borrowing was used to pro-
duce high-quality human, intangible
and physical assets. A fixation on elim-
inating budget deficits, in this context, is
really stupid stuff. Should real rates rise
again, this would reflect better per-
ceived opportunities and so justify (and
facilitate) curbing government spend-
ing. Meanwhile, the low cost of past bor-
rowings would be locked in. Moreover,
Instead, they are treated as facilitators
of transactions between consumers and
suppliers. That pushes responsibility for
paying VAT on to contractors or mer-
chants, who have much lower revenues
and often don’t hit the minimum
threshold for paying VAT.
Even when they do, suppliers are
often based offshore or in territories
where it is hard to pursue legal cases. So
tax authorities end up relying on the
voluntary payment of sales tax or VAT.
Many online market place suppliers
further benefit from exemptions for
imports of low-value goods. A rule
aimed at reducing the administrative
workload for customs agents has ended
up facilitating a high volume tax-ex-
empt trade that competes with onshore
companies.
An OECD report highlighted how the
practices put “unfair competitive pres-
9
environment, but reduce costs to con-
sumers and provide jobs for the miners
supplying the coal. Which concern
should prevail?
Individual companies cannot expect
to thrive if they remain bound by the
conventions and expectations of the
past. They must respond to the chang-
ing demands of the world around them.
This does not require a change in the
legal regime that puts shareholders
first. Rather it requires an enlightened
and far-sighted approach to applying
that principle.
The private sector needs to live up to
those standards and address such prob-
lems as climate change, job losses from
technological change and income ine-
quality. If it doesn’t there will inevitably
be increasing calls for the government
to step in.
The writer is a partner at Sullivan &
Cromwell. Joseph Frumkin and Melissa
Sawyer of the same firm also contributed
Germany Japan Eurozone
Taiwan
14
12
10
8
6
4
2
2007 2009 2011 2013 2015
as Olivier Blanchard has noted, it is
usual for safe interest rates to be below
growth rates. Today seems to be just an
extreme version of this reality.
These are fragile times. Some of that
reflects the wave of populist national-
ism that is now sweeping across high-
income countries. But some of it reflects
sterile orthodoxy. A modest slowdown
is one thing. But a sharp slowdown we
refuse to deal with, because of stupidity,
would be another thing altogether.
As Ms Georgieva argues, we do need a
“renewed commitment to international
co-operation”. This is also the theme of a
recent compendium from the Bretton
Woods Committee. Today, however,
that might be too ambitious. But we
could at least stop doing the stupid stuff.
martin.wolf@ft.com
sure on domestic businesses that are
increasingly incapable of competing
against the continuously rising volumes
of [VAT or goods and services tax]-free
online sales of goods”. This, in turn,
hurts domestic employment and direct
tax revenue, it noted.
The problem for the tax authorities,
though, remains the complexity and
cost of tracking VAT abuses across
many countries. Additional checks and
searches could also put a damper on glo-
bal commercial activity. That’s why the
easiest way to re-establish a level play-
ing field is to make platforms legally
responsible for VAT, either directly, or
by holding them accountable through
loss of licenses if their suppliers are
caught underpaying. This is why the
Uber case is worth watching.
izabella.kaminska@ft.com
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
10 ★ FINANCIAL TIMES Wednesday 16 October 2019

China pork stocks: the pig picture

An outbreak of swine fever is cutting through China’s pork industry. Meat prices and shares of businesses in
the production chain have soared. Hundreds of millions of pigs may need to be destroyed. The government
is stepping in to unlock new supplies.

Twitter: @FTLex
Neil Woodford:
decline and fall
In March, Neil Woodford joked that he
could “be out of business in two-and-a-
half years”. It looks like it could all
happen a lot quicker than that.
His group has been fired as manager
of the flagship Woodford Equity
Income Fund. It faces the same fate at
Woodford Patient Capital Trust, his
other main vehicle. Mr Woodford, once
the UK’s most formidable stock picker,
looks finished as a force in retail funds.
The structure he devised has been
his downfall. The EIF, characterised by
this column as a “doom loop” before its
suspension in June, piled risk upon
risk. The open-ended fund, worth
£10.2bn at its peak, offered daily
redemption and specialised in
“conviction” stakes in blue-chips and
illiquid stocks. Many of Mr Woodford’s
muddled bets failed spectacularly.
Retail investors lured by fund
supermarket Hargreaves Lansdown
then stampeded for the exit.
Short sellers, positioned like hungry
bears on a salmon river, exploited the
opportunity created by forced sales.
No other fund manager of Mr
Woodford’s calibre can boast of being
sacked with the backing, however
indirect, of Andrew Bailey, boss of the
Financial Conduct Authority. Link
Services, the business with the
previously low-profile role of
authorised corporate director of the
EIF, consulted closely with the UK
regulator on its plan to ditch Woodford
Investment Management. Neither of
them, it appears, told Mr Woodford
until the last moment.
The solution is a clean one.
BlackRock and PJT Park Hill will sell
off assets slowly enough to deter short
sellers and bargain-hunting buyers of
unquoted stocks. Then the pair will
return net proceeds to investors, none
of whom has first-mover advantage.
The move also spritzes some
sanitiser over Link and the FCA, which
have been heavily criticised for failures
of oversight. The next step is for the
FCA to ban fund supermarkets such as
Hargreaves Lansdown from striking
sweetheart deals with investment
managers to push their products.
Open-ended funds with illiquid assets
should have redemption “gates” fitted
as a standard, prominent feature.
Mr Woodford could easily reinvent
himself, running family and client
money privately. But his cult of
personality is over in retail investment.
As an aside, assets have risen by a tenth
this year at Schroders, a fund house
where there is no “I” in “team”.
Danish biotech:
white coat catalyst
Three strikes and you're out. Chief
executive Peder Holk Nielsen will leave
Novozymes early next year, the big
Danish biotech group said yesterday.
Shares jumped 5 per cent on the
news, which followed a profit warning
last week, the third in six months.
Weaker markets hastened Mr
Nielsen’s departure, but sales growth
has been missing from the group’s
formula for years. An external
replacement will be appointed soon.
Catalysing Novozymes’ research
department will be top of the agenda.
Novozymes’ shares once traded at a
premium to those of Danish rival
Christian Hansen. That reversed as
Novozymes shares tracked its sales
sideways from 2015. The company has
promised to raise sales growth to 5 per
cent a year by 2021. That will become
harder as the global economy slows.
The group’s biological additives go
into everything from bread to washing
powder. Additives for biofuels proved a
growth area in recent years. Low US
ethanol prices and falling output are
responsible for the latest profit
warning. Earlier alerts reflected weak
demand in some emerging markets.
The top line grew only 3 per cent
between 2015 and the end of last year.
Christian Hansen sales, by contrast,
rose more than a third. Sales growth as
a ratio of research and development
spending has fallen at both.
For each euro of R&D expenditure,
the following year’s sales grew by €0.55
at Novozymes and €2 at Christian
Hansen in the five years to 2015.
On that basis, R&D efficiency has
fallen 62 per cent and 30 per
cent respectively at each since 2016.
Christian Hansen’s focus on natural
products has gone down well with
consumers. Big ideas coming from its
research department have excited
investors: replacing harmful pesticides
with naturally derived alternatives
is one of these.
Novozymes thinks that better-
Chinese pork and feedstuff producers
Share prices (rebased)
Zhengbang Tech
Shandong Yisheng
Muyuan Foods
Shunxin Agriculture
Wens Foodstuff
Oct Dec Feb Apr
2018
FT graphic Sources: Refinitiv; Haver Analytics
In China, pork barrel politics involves
national economics rather than local
electoral advantage. Prices for the
meat soared 69 per cent in
September, pushing consumer price
inflation to Beijing’s ceiling of 3 per
cent. Share prices have run away
faster than a greased piglet. They will
turn tail as the government steps up
interventions.
China consumes half the world’s
supply of pork, which has been
squeezed by a swine fever epidemic.
Pork accounts for about 60 per cent
of Chinese meat consumption and is
a crucial part of the national cuisine.
Demand is inelastic. Consumer
frustration is rising with prices.
China’s pork output is set to fall by
a quarter this year, creating a
smelling laundry can salvage its sales.
Mr Nielsen’s successor will need
fresher ideas than this to succeed.
Hays/Brexit:
hire purchase
When the going gets tough, employers
start to hand out “lateral promotions”.
The pointy-haired boss of the Dilbert
cartoons once explained the thinking:
“I was going to hire from the outside,
but I realised I can make you do the
new job plus your old one.”
Such ploys become more common in
times of uncertainty. Jittery companies
are slower to advertise jobs. That takes
a toll on recruitment consultancies.
Yesterday, Hays reported flat net fees
Pork prices and livestock
Annual % change
600
Pig stock
500
Consumer prices - pork
400
2015
300
Number of pigs reared in China
Million
200
100
0
Jun Aug Oct
2019
1990
shortage of up to 10m tonnes. The
stock of hog producer Muyuan has
jumped 188 per cent this year.
Zhengbang Tech, which produces
feedstuffs, has leapt 205 per cent.
Some of these gains will shrivel like
bacon in the pan. Beijing has a motive
to fatten supply — popularity — far
bigger than pork’s full-fat 15 per cent
weighting in consumer price inflation.
The government has started
releasing frozen pork from its reserves,
starting with 10,000 tonnes. Subsidies
for new pig farms and plans to breed
pigs as heavy as polar bears are among
the other initiatives
It is tough for established pork
producers to raise their own
production, owing to restrictions
triggered by the epidemic. US imports
in the first quarter. The worst
performers were the UK and Ireland,
where Brexit-related paralysis dragged
fees down 4 per cent. Germany, its
largest market, was flat, as
manufacturing industries struggled.
Waning fee growth has put pressure on
profitability at Hays, although it
remains high by industry standards.
The proportion of net fees converted
into operating profit fell 70 basis points
to 22 per cent in the past financial year.
The shares jumped by nearly 9 per
cent yesterday. That signalled relief,
particularly after profit warnings from
two other big recruitment groups. The
resilience was partly down to the UK’s
dwindling importance. The UK now
accounts for just 23 per cent of fees,
compared with 36 per cent in 2015.
Less mature markets, where there is
80
60
40
20
0
-20
16 17 18 19
500
400
300
200
100
0
95 2000 05 10 15 18
may also evict them from hog
heaven. These have already more
than tripled in the first eight months.
If the government’s self-help plans
falter, China could admit a lot more
US pork next year.
Europe has this year been a key
supplier to China. In part, that
reflects trade tensions with the US.
But herds in Poland and Romania
have recently been hit by outbreaks
of swine fever too.
If China plays its hand well — and
President Donald Trump breaks the
habit of a lifetime and plays ball —
the promise to ship in US pork could
pave the way to rapprochement.
Importing US pigs may yet become
a diplomatic flourish for China, just
like panda exports.
more scope for outsourcing, are
picking up the slack. Half of Hays’
businesses are stable or growing.
Hays’s shares dropped 30 per cent
after the 2016 EU referendum. Anyone
who bought then would have seen a
78 per cent return, nearly twice that of
the FTSE 100 index. The stock is now
priced at nearly 14 times the next
12 months’ earnings, compared with a
five-year average of nearly 16. That is
on a par with US consultancy Robert
Half International, though significantly
higher than rivals PageGroup and
Robert Walters. Hays has strong
profitability and cash generation.
Hays illustrates the thesis that
recruiters, while cyclically volatile, also
produce secular growth.
The UK’s unpredictable politics will
produce new buying opportunities.
US banks:
plastic power
If there is one thing that can be gleaned
from yesterday’s mixed bag of bank
earnings, it may be this: American
consumers are doing all right.
US shoppers are putting more of
their purchases on plastic than ever. US
credit card debt stood at $830bn at the
end of June, according to Experian.
Banks with big credit card divisions are
reaping the benefit.
At Citigroup, revenue from credit
card loans jumped 11 per cent to
$2.3bn in the third quarter, accounting
for nearly 13 per cent of total group
revenue. That provided a bright spot in
an otherwise lacklustre quarter.
It was a similar story at Wells Fargo.
Even as lower rates shaved $1bn off net
interest income, higher card spending
helped boost the value of consumer
loans 5 per cent during the quarter.
At JPMorgan Chase, credit card
spending rose 10 per cent year-on-year
to $193bn during the third quarter,
raising the balance 8 per cent to
$158.2bn. Revenue from the card
business was down during the quarter
but remains 8 per cent higher for the
first nine months of this year.
Rising credit card debts are not a
cause for universal celebration.
Guardians of public morality will decry
the buy-now, pay-later ethos.
Economists will discern a credit
bubble. Social campaigners will
diagnose growing neediness.
Look on the bright side. Credit
quality remains strong. Economic
indicators are steady and debt is
relatively cheap. Changes in consumer
behaviour are also bolstering the credit
card business. Loyalty programmes
encourage app-wielding customers to
use credit rather than debit plastic.
At a time of narrowing net interest
margins, the spread between the cost of
money and charges to borrowers has
made the card business relatively
profitable. Goldman Sachs’ investment
bank had a terrible quarter, leaving
boss David Solomon to talk up the
rollout of the Apple Card as “the most
successful credit card launch ever”. The
direction of travel for US banks is clear.
Lex on the web
For notes on today’s breaking
stories go to www.ft.com/lex

CROSSWORD ACROSS
1 Fruit rock from England hawked
4 Waste away after American pot
(7)
No. 16,299 Set by JULIUS in a Sydney market? (11) 5 Boil contents of Arab’s cesspit (7)
7 Is mardy every now and again 6 A window of opportunity for the
        (miserable) (3) Gunners? (9)
9 Major operatic work (5) 7 Angel’s turn of phrase (6)
10 Spar roughly with Chuck, making 8 English poet’s humourless study
  an offensive noise (9) (6)
11 Exploding Nepal pipe grenade 14 No longer in charge, ichthyologist
(9) gets drunk – losing it; that’s the
12 Liberal politician getting stuck spirit! (4,5)
  into the beer (5) 16 In which to plant little Tom’s
13 Absolutely anything in the Big weed? (8)
Apple is sinful (7) 17 Nag Elvis about Col Tom Parker?
   15 Murphy rejecting the Unionists’ (8)
shilling (4) 19 Plans to serve up Spam rejected
  18 Suspect professor left university (4,3)
during the afternoon (4) 20 My, I’ll be getting upset about
  
20 Anton’s to work on his to-do list, European composer (7)
  by the sound of it (7) 21 Couple told to sack one
23 Chancellor Angela adopting presenting large bill (6)
   vulnerable Indonesian resident 22 Dog gamble sucking in idiot (6)
(5) 25 Cop upsetting leaders of Royal
24 Sniper shot poor mom hiding in Ulster Constabulary (Northern
tree (9) Ireland) (5)
 
26 Wind MP Nancy trapped? Here’s
a laxative (6,3) Solution 16,298
27 Drink scrumpy regularly, dad? (5) $ & & 8 5 $ 7 ( + ( $ / 7 +
  28 Head teachers (3) % 2 2 5 / 2 $
29 Hit by Little Richard (not Vanilla 6 , 1 * 8 / $ 5 / $ % 2 8 5
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be served at table? (4-4) ( 5 . 2 5 5
2 I urge men to reform; to become ( 6 6 ( 1 7 , $ / 3 5 2 9 (
sweet (8) 7 + ,
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5 ( $ 6 6
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3 August: pruned climbing Virginia ( 1 + & 7 & '
tree (5) $ 6 7 8 7 ( 6 7 5 $ 7 ( * <
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
Wednesday 16 October 2019 ★ 11

Horror scope The future for Facebook’s Green shoots Climate crisis offers fresh
Libra does not look bright — ANALYSIS, PAGE 13 fields for equity research — MARKETS INSIGHT, PAGE 20

Wirecard suffers 13% share decline Tail

Risk
3 German fintech embroiled in accounts scandal 3 Group rejects ‘misleading allegations’
FT REPORTERS and misleading allegations”. Wirecard’s earlier convertible bond deal. The new six employees as suspects in a probe into
Robert
€1.4bn of bonds also came under severe bond was sold to investors above its face
‘We will alleged false accounting. Smith
Wirecard shares dropped 13 per cent pressure. The company raised the debt value — at 107 cents on the euro — and incorporate Yesterday, BaFin, Germany’s finan-
yesterday after the Financial Times only last month, after it obtained an traded down to just 81 cents on the euro the new cial regulator, said that it would look at
published internal documents that investment grade credit rating from late yesterday. the day’s market movements. “We will Two months after WeWork filed a prospectus for an initial
appear to show efforts to inflate sales Moody’s for the first time. It was the latest rollercoaster day for incident into incorporate the new incident into our public offering, the shared-office company is battling to
and profits fraudulently at the German The value of a €500m five-year bond investors in a company that has faced our ongoing already ongoing market manipulation avoid bankruptcy. In the wake of the IPO’s failure,
technology group. fell to 83 cents on the euro, equating to a intense scrutiny since the FT revealed investigation. We are in very close co- WeWork is confronted with a stark choice: take a financing
Internal correspondence obtained by yield of more than 4.3 per cent. The debt that a member of the group’s Singapore investigation’ ordination with the Munich public pros- package from SoftBank, which hands the Japanese tech
the FT suggests a concerted effort to had been issued slightly below face team was suspected of cooking the ecutor’s office,” it said. conglomerate control of the company, or one from JPMor-
BaFin
manipulate the accounts at Wirecard value at a yield of 0.6 per cent. books for subsidiaries in the region. The FT has categorically rejected gan Chase that will burden it with expensive debt.
subsidiaries in Dubai and Ireland, and A €900m bond exchangeable into Wirecard has said there has been no Wirecard’s market manipulation The real question is whether the once-hot prospect’s fall
potentially to mislead auditors at EY. Wirecard stock fared even worse. The material impact from the Singapore rev- claims. A recent two-month review by from grace has broader significance. Is it just a cautionary
Wirecard shares fell as much as 22 per debt had been raised in September as elations on its financial statements, has RPC, an external law firm, found no evi- tale? Or has it highlighted that a flood of private capital has
cent but recovered to close at €122.05 part of a complicated trade that cut the denied any wrongdoing and has accused dence of collusion between FT reporters distorted valuations across markets?
after the company said that the article exposure to Wirecard of SoftBank, FT journalists of market manipulation. and market participants. One school of thought is that WeWork’s failed IPO is to
was “a compilation of a number of false which had poured in €900m through an Prosecutors in Singapore have named A tale of suspect practices page 7 the venture capital boom what “burning bed” was to the
leveraged buyout craze 30 years ago.
US private equity firms crested an M&A wave in the
1980s, fuelled by surging demand for junk bonds that fund
Holding pattern Japan pension fund’s foreign purchases thwart yen’s rise managers had previously shunned. At first, these LBOs
were successful only if the companies generated enough
money to service their debts. But as investor discipline
weakened, they started to
As the trade war rumbles on and buy bonds from groups with
economic data worsen, strategists expect questionable cash flows, hop-
Is WeWork’s
the Japanese yen — the quintessential ing that assets would cover failed IPO to the
haven asset — to head higher. their debts.
Goldman Sachs said this week that In the late 1980s, US
VC boom what
betting on a higher yen against the dollar investment banks keen to ‘burning bed’ was
remained one of its “highest conviction” profit further started under-
currency views. Samy Chaar, Lombard writing the debt portion of
to the LBO craze
Odier chief economist, said the bank these deals, providing bridge 30 years ago?
maintained “a defensive asset allocation” loans that would be repaid in
that favoured both gold and the yen. short order when the junk bonds were sold to investors.
And yet, the currency shows no signs of The first cracks appeared in August 1989. First Boston
appreciating, as the dollar hovers at about was stuck with a near-$500m bridge loan backing the buy-
¥108. “The yen holds the award for the out of Ohio Mattress Company after junk-bond investors
cheapest [major] currency,” said Mark balked, in a debacle dubbed “burning bed”. Two months
McCormick, global head of currency later, the much bigger LBO of United Airlines collapsed,
strategy at Toronto-based TD Securities. precipitating a crash that morphed into a recession.
Karen Reichgott Fishman, an In the 1980s, investment banks backed these dubious
economist at Goldman, said that the yen’s deals in the belief they could easily flip the debt to bond
“stubborn weakness” had been due to investors. Today, venture capital funds chase companies
Japan’s Government Pension Investment with no immediate path to profitability, believing that
Fund buying foreign assets, which has led equity markets will buy them at even higher valuations.
to downward pressure on the currency. Issei Kato/Reuters The 1980s LBO bust also showed how one player could
The fund’s hefty investments abroad Japan pension fund’s* purchases of foreign equities have muted yen gains skew a market. Michael Milken, the “Godfather of Junk”,
keep the lid on gains in the yen without fuelled the mania. His firm, Drexel Burnham Lambert,
Yen against the dollar (¥ per $) Total Japan foreign equity purchases, centered 12-month moving average (¥tn)
Japan having to resort to market developed the ingenious “highly confident letter”, a means
interventions that could prompt Donald 100 0 of backing deals while putting no capital at risk. Invest-
Trump, the US president, to accuse the 2 ment banks began writing bridge loans to go one better.
country of manipulating its currency. 105 4 Similarly, Silicon Valley’s venture funds have noted the
But Mr McCormack said that a wobble 110 6 distorting impact of SoftBank and its Saudi Arabia-backed
in US equity markets could trigger a 8 Vision Fund, which poured more than $10bn into WeWork
significant appreciation in the yen, as 115 10 and lifted its private valuation to $47bn. That meant tradi-
Japanese investors would rush to sell US 12 tional VC funds had to write bigger cheques to compete.
120
assets and take their money home. 14 Milken’s downfall hastened the collapse of the junk bond
This could, in turn, force Japanese 125 16 market. What would a SoftBank stumble mean for the VC
policymakers to intervene to weaken the 2014 15 16 17 18 19 boom?
currency, he said, putting the “pain limit”
Sources: Haver Analytics; Goldman Sachs Global Investment Research * Government Pension Investment Fund
at about ¥95. Eva Szalay robert.smith@ft.com

BlackRock rides passive investing wave

with record margin and $7tn in assets
RICHARD HENDERSON — NEW YORK management’s operating margin hit hurt investor sentiment without spur-
46 per cent in the quarter. ring economic activity.
BlackRock achieved a record profit
BlackRock has been one of the big “I don’t see how the transmission of
margin last quarter, as lower costs and
winners from the growth of index negative interest rates effectuates more
new client money swelled assets to
investing in which investors are charged activity in Europe,” he said. “I get the
almost $7tn.
a small fee for buying into funds that theory but we are seeing the opposite —
The world’s largest fund manager track benchmark indices such as the consumers and banks are pulling back.”
Oscar-winner DNEG seeks attracted $84bn of inflows in the third S&P 500. BlackRock’s net income in the quarter
stellar London stock listing quarter, with about half going to its Larry Fink, chief executive, told the fell to $1.1bn, from $1.2bn a year ago,
iShares business, a juggernaut in passive Financial Times the wave of brokerages but the results exceeded Wall Street
Five-time Oscar-winner DNEG has investing. Its active equity funds eliminating trading commissions had forecasts.
announced plans for a London Stock attracted $5.3bn in net inflows. provided a tail wind for iShares, the Overall revenues climbed 3 per cent
Exchange flotation. The London-based Revenue from BlackRock’s technol- fund manager’s passive investing fran- to $3.7bn. Shares in BlackRock rose
visual effects company aims to raise ogy business, which includes its Aladdin chise. “Its great for investors,” said Mr almost 3 per cent in New York.
£150m to tap into a ‘golden age’ of platform that does everything from ana- Fink. “The real opportunity is in the BlackRock attracted $8bn in alterna-
filmmaking that is being fuelled by lysing the risk of investing in particular more rapid adoption of ETFs.” tive investments for the third quarter.
streaming services. stocks to mining data sets, climbed 30 On the macroeconomy, Mr Fink The asset class, which includes real
Report i PAGE 12 per cent from a year ago. Combined with warned that the trend toward negative estate, attracts higher fees than the typi-
lower than expected costs, the asset interest rates in Europe and Japan had cal stock or bond portfolio.

Companies / Sectors / People

Companies
Al Alam Solutions.....................................7
Alipay................................................................7
Amazon...........................................................9
Anheuser-Busch.......................................12
Anthem.........................................................20
Apple................................................................9
ArcelorMittal...............................................12
Avantor............................................................1
BAK Power..................................................14
BBC...................................................................12
BNP Paribas................................................12
BP........................................................................2
Bellway..........................................................20
BlackRock................................................10,11
Blockchain....................................................13
Bodycote......................................................20
British Land...............................................20
CCBill.................................................................7
CYBG..............................................................20
Calibra............................................................13
CardSystems.................................................7
Charles Schwab.......................................20
Christian Hansen.....................................10
Cigna..............................................................20
Citigroup...........................................10,12,14
Commerzbank.....................................14,20
Credit Suisse..............................................12
DE Shaw........................................................12
DNEG..............................................................12
Deutsche Bank..........................................12
Disney.............................................................12
Drexel Burnham Lambert...................11
EBay.............................................................9,13
EIB......................................................................2
EY...................................................................7,11
Emerson Electric......................................12
Equity Income Fund........................10,15
Essar Group................................................12
Facebook......................................................13
Faraday Future.........................................14
First Boston.................................................11
Ford.................................................................14
Fosun..............................................................14
Gaming Network Solutions.................7
Goldman Sachs....................1,10,12,19,20
Google..............................................................9
Hargreaves Lansdown.........................10
Hays................................................................10
HelloFresh...................................................20
Huawei.............................................................8
Hulu.................................................................12
Humana........................................................20
Industrial Heat..........................................15
Interpump...................................................20
JPMorgan.....................1,10,11,12,14,19,20
JPMorgan Securities..............................12
Janus Henderson Group.....................19
Johnson & Johnson.........................12,20
Klöckner.......................................................20
Land Securities........................................20
LeEco..............................................................14
Link Services..............................................10
Lloyds............................................................20
Manchester United................................20
Mastercard...............................................7,13
Molotok............................................................7
Morgan Advanced.................................20
Muyuan.........................................................10
Netflix.............................................................12
Nomura..........................................................12
Novozymes.................................................10
Numis Securities......................................12
Nvidia............................................................20
Ocado............................................................20
Ohio Mattress Company......................11
OneSavings................................................20
Orient Securities......................................12
PJT Park Hill.............................................10
Pacific Investment..................................19
PageGroup..................................................10
Patient Capital Trust............................10
PayPal.............................................................13
Piku....................................................................7
Pimco..............................................................19
PrivatBank.....................................................3
Prothena.......................................................15
RHI Magnesita.........................................20
Rémy Cointreau......................................20
Renishaw.....................................................20
Robert Half International...................10
Robert Walters.........................................10
Rosatom........................................................12
Rosneft...........................................................12
SAP....................................................................7
Santander.....................................................12
Schroders.....................................................10
Siege FX........................................................19
Sky....................................................................12
SoftBank...................................................11,19
Standard Chartered...............................19
State Street.................................................11
Stripe...............................................................13
Tesla................................................................14
Thomas Cook............................................14
UBS..................................................................12
Uber................................................................1,9
UniCredit......................................................14
United Airlines...........................................11
UnitedHealth.............................................20
UnitedHealth Group.............................20
Uranium One..............................................12
Vanguard.................................................11,19
Vantiv...............................................................7
Vesuvius......................................................20
Visa...............................................................7,13
WeWork.................................................1,11,19
Wealth Minerals........................................12
Wells Fargo...........................................10,14
Whitbread...................................................20
Wirecard.....................................................7,11
Woodford Inv’ment Manag’t.......10,15
Zhengbang Tech.....................................10
Zotye...............................................................14
Sectors
Airlines.............................................................8
Automobiles...............................................14
Banks......................................1,3,10,12,14,19
Energy............................................................12
Financial Services..............................13,19
Financials.................2,10,11,12,13,14,15,19
Food & Beverage..............................10,12
Healthcare...................................................12
Media..............................................................12
Mining.............................................................12
Oil & Gas........................................................2
Pharmaceuticals.......................................10
Property...................................................11,19
Support Services.....................................10
Technology..................................9,12,13,19
Travel & Leisure............................8,12,14
People
Bloomberg, Michael...............................14
Bogolyubov, Gennadiy...........................3
Braun, Markus.............................................7
Corbat, Michael........................................14
Dimon, Jamie................................................1
Disparte, Dante.........................................13
Dudley, Bob..................................................2
Fankhauser, Peter...................................14
Farr, David...................................................12
Fateh, Fred....................................................7
Fink, Larry....................................................11
Glazer, Kevin.............................................20
Goulet, Claude...........................................19
Gross, Bill.....................................................19
Hoyer, Werner.............................................2
Jager, Edwin...............................................12
Jia, Yueting.................................................14
Jobs, Laurene Powell............................15
Jobs, Steve..................................................15
Kolomoisky, Igor........................................3
Krumphanzl, Petr.......................................3
Malhotra, Namit........................................12
Marcus, David............................................13
Mason, Marc...............................................14
McCutcheon, Tim.....................................12
McDowell, Andrew....................................2
Meysman, Frank.......................................14
Milken, Michael..........................................11
Moore, Jay...................................................19
Musk, Elon...................................................14
Neumann, Adam......................................19
Nielsen, Peder Holk...............................10
O’Mary, Michael........................................12
Piepszak, Jennifer...................................14
Powers, Jake.................................................7
Ruia, Ravi......................................................12
Solomon, David.....................................1,10
Woodford, Neil....................................10,15
Zhang, Victor...............................................8
Zuckerberg, Mark....................................13

© The Financial Times Limited 2019 Week 42


12
Banks
Citi plans wholly owned China unit
Trailblazing effort to set
up securities business as
Beijing scraps foreign caps
GEORGE HAMMOND — HONG KONG
Citigroup is pushing to be the first for-
eign bank to take full ownership of its
securities business in China, as it tries to
leapfrog rivals and take advantage of
Beijing’s easing of rules.
As part of its plan, Citi was unwinding
its joint venture with Orient Securities,
in which it had a 33 per cent stake,
and would next year submit an
application for a fully owned business,
according to people familiar with
the matter.
Despite the trade war, Beijing has con-
Healthcare
J&J raises
outlook but
warns over
legal costs
HANNAH KUCHLER — NEW YORK
Johnson & Johnson raised forecasts for
the full year on the back of better than
expected third-quarter results, while
warning that uncertainty remains
around legal costs.
The world’s largest healthcare company
now expects sales, adjusted for currency
fluctuations and divestitures, to grow
between 4.5 per cent and 5 per cent this
year, compared with its last forecast for
growth of between 3.2 per cent and 3.7
per cent.
J&J said it expected adjusted diluted
earnings per share for the full year of
between $8.62 and $8.67, up between 5.4
per cent and 6 per cent year on year, and
a higher range than the previous esti-
mate of $8.53 to $8.63.
Joseph Wolk, chief financial officer of
J&J, said the results showed the group
was not being distracted by litigation.
He criticised the “big business” of plain-
tiffs’ attorneys pursuing life sciences
groups with product liability lawsuits.
Among the legal claims J&J faces are
lawsuits over the opioids crisis, claims of
side effects for the drug Risperdal and
allegations that its talcum powder
causes cancer. Mr Wolk said the talc
cases in particular were the “poster
child” for the plaintiffs’ attorneys’
approach, which he said relied on TV
ads to drum up claimants.
J&J has come under increased legal
pressure in the last quarter, after it lost
an opioid crisis-related lawsuit in Okla-
homa and was ordered to pay $572m.
The company is appealing against the
verdict, but it is also facing a raft of
plaintiffs from states and counties pur-
suing it, along with other opioid makers
and distributors, for its alleged role in
the US epidemic.
J&J also settled two cases in Ohio that
were due to go to trial this month for
$20.4m. Mr Wolk said the company was
“particularly pleased to see funds going
to the victims of opioid addiction”.
This month J&J was ordered to pay
$8bn to a plaintiff who claimed it failed
to warn that young men using antipsy-
chotic drug Risperdal could grow
breasts. J&J said at the time it was confi-
dent the award would be overturned.
In the third quarter, J&J beat expecta-
tions with adjusted earnings per share of
$2.12, compared with the average ana-
lyst estimate of $2.01. Net income was
$4.8bn, soaring 22.9 per cent from the
same period last year.
Mining
Rosatom lines up deal for Chile lithium stake
HENRY SANDERSON — LONDON
NASTASSIA ASTRASHEUSKAYA
MOSCOW
Russia’s state-run nuclear group
Rosatom has signed a preliminary
agreement to buy up to 51 per cent of a
Chilean lithium project in return for
supplies of the mineral.
Rosatom’s mining subsidiary Uranium
One signed a memorandum of under-
standing with Canada’s Wealth Minerals
that gives it the right to buy a stake in
the 46,200 hectare lithium project in
the Atacama Desert in northern Chile.
The deal would give Rosatom access
to major deposits of lithium that are dis-
solved in brine beneath the desert.
Chile is the second-largest producer of
lithium and has the largest reserves in
the world, but it has been slow to
develop new deposits even though the
mineral is in great demand for electric
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tinued to open up capital markets to for-
eign investors and loosen rules on how
western financial institutions can oper-
ate in the second-biggest economy.
In July, the People’s Bank of China
announced that limits on foreign own-
ership of securities business and fund
management companies would be abol-
ished from next year.
If Citi is successful in its application, it
would allow the bank to push further
into a market that generated more than
$1bn of the $15.4bn of Asian revenues it
had last year, the people said.
The bank believes full ownership
would give it an advantage over foreign
banks that simply have majority control
of joint ventures.
Citi was likely to focus its initial efforts
on expanding its brokerage and futures
Oscar winner seeks scene-stealing London IPO
PATRICIA NILSSON AND SARAH PROVAN
LONDON
Oscar-winning visual-effects company
DNEG has announced plans to float on
the London Stock Exchange, aiming to
raise £150m to tap into the “golden
age” of filmmaking being propelled by
streaming services.
The company, which offers digital
effects, animation and 3D conversion of
film footage, said yesterday its offer
would include new shares as well as the
stakes of some existing shareholders
and would help it reduce debt and fund
further expansion.
DNEG has won the Academy Award
for best visual effects five times, most
recently for its work on the Neil Arm-
strong biopic First Man.
A successful London listing would
make the group, whose recent credits
include Chernobyl and Dumbo, an outlier
on the LSE, which has suffered from low
car batteries and mobile phones. Wealth
Minerals is trying to extract lithium
from the brine without using the usual
method of solar evaporation, which
takes about 18 months and uses large
ponds in the Atacama Desert.
The company said that Uranium One
The Russian group would
have access to major
lithium deposits beneath
the Atacama Desert
had a processing technique that used a
catalyst material to extract lithium,
avoiding the need for solar evaporation.
“Partnering with Uranium One will
help Wealth accelerate the development
of lithium projects by using modern
technology and moving away from solar
evaporation to a more efficient and
★ † FINANCIAL TIMES
COMPANIES
trading, the people said. However, the
wholly owned business was unlikely to
immediately offer investment banking
services on the mainland as the costs of
doing so, including having a minimum
of 35 local employees, were high.
China is one of the US bank’s top three
Asian markets for its investment bank-
ing business.
Citi has been an underwriter on a
number of big China-focused deals,
including last month’s initial public
offering in Hong Kong of the Asia arm of
Anheuser-Busch, the biggest brewer.
Foreign banks have been allowed to
enter joint ventures in China as minor-
ity partners since 2004. That was eased
in 2017, when foreign institutions were
allowed to take controlling stakes of up
to 51 per cent in the ventures.
volumes and a number of delistings in
part due to persistent uncertainty
around the UK’s future relationship
with the EU.
Namit Malhotra, DNEG’s chief execu-
tive, said a LSE listing would give the
company recognition as it expands its
work with studios in Hollywood and
Bollywood as well “newcomers” such as
Netflix and Hulu.
“This is a golden age for premium
content as major markets re-establish
their love for film, especially with the
exponential growth of high-quality
streamed content,” he said.
The so-called streaming wars, or the
fight for the best films and TV series as a
growing number of companies launch
their own video-on-demand subscrip-
tion services, have fuelled a boom in the
production industry.
UK production houses enjoyed record
revenues of £3bn last year, and foreign
media groups doubled their spending
environmentally friendly . . . technol-
ogy,” said Tim McCutcheon, president of
Wealth Minerals.
Rosatom said it was interested in lithi-
um-related projects “as part of the sup-
ply chain of the exponentially growing
sustainable energy sector. We use lith-
ium as a raw material in our production
and high value-added manufacturing so
integration into lithium mining is an
organic step forward.”
Uranium One is one of the world’s
largest uranium producers.
Atacama will be its first lithium
project but its “mining expertise, the
technology and the group’s involvement
in the energy space as a whole” made it a
suitable partner, said Mr McCutcheon.
The latest MoU builds on one signed
in 2017 between Rosatom and the Chil-
ean Commission of Nuclear Energy to
promote co-operation in the nuclear
and lithium sectors in Chile.
A venture In August, Goldman Sachs applied to
take majority control of a securities
with Orient
in which
joint venture in which it already holds
33 per cent.
UBS was the first to receive approval
the bank
has a 33%
for majority ownership, receiving the
green light in December to raise its stake
stake is
in Beijing-based UBS Securities from
almost 25 per cent to 51 per cent.
Credit Suisse, JPMorgan and Nomura
being are also all seeking majority stakes in
unwound their joint ventures.
“Citi continues to evaluate opportuni-
ties to further support its clients in
China,” the bank said.
Citi’s plans were first reported by
Bloomberg.
Citi planned to have sold its entire
stake in the Orient joint venture by the
end of 2019, according to the people.
Prize performer: on British producers in the five years to
2018. DNEG works with companies
visual effects
specialist DNEG including Disney, the BBC and Sky. The
won its most group, which employs nearly 7,000
recent Academy people across the UK, India, the US and
Award for work Canada, was created in 2014 following a
on ‘First Man’ merger between Double Negative and
Allstar/Universal Pictures Prime Focus, which was founded by
Mr Malhotra.
The company has also won several
Baftas and an Emmy award. It reported
$309m in revenues and $70m in
adjusted earnings before interest, tax,
depreciation and amortisation in the
year to March 2019.
DNEG has asked JPMorgan Securities
to act as its global co-ordinator, while
Deutsche Bank, Numis Securities,
Santander and BNP Paribas will act as
joint bookrunners should the offer pro-
ceed. It intends to have a free float of at
least 25 per cent of its share capital and
will include an overallotment option of
up to 15 per cent of the total offer.
Energy
DE Shaw urges Emerson Electric to break-up
LINDSAY FORTADO — NEW YORK ness to create two “leaner, more focused
organisations” and end the company’s
Hedge fund DE Shaw is calling for US
conglomerate structure, they added.
automation and building equipment
They said Emerson was spending too
group Emerson Electric to split into
much money on research and develop-
two separate companies, reduce its
ment, creating an organisational struc-
spending by more than $1bn a year and
improve its corporate governance
structure.
1.65
The company’s management and board
% %
Jump in Emerson
“have let shareholders down” through shares since news
“persistent undermanagement of
[Emerson’s] assets and a long track
of DE Shaw’s
campaign broke
record of poor capital allocation, exces-
sive costs, suboptimal business configu- ture laden with overlapping job respon-
ration, deficient corporate governance sibilities and having too many office
and misalignment of interests”, DE locations, including 18 in the city of
Shaw managing directors Edwin Jager Houston, Texas, alone.
and Michael O’Mary said in a letter to DE Shaw also wants the company to
Emerson’s board of directors yesterday. change its metrics for executive com-
The fund wants Emerson to separate pensation, which it says “encourage
into an industrial automation business management to pursue the wrong
and a climate technology-focused busi- goals”. Emerson shares rose 1.65 per
Wednesday 16 October 2019
INSIDE BUSINESS
ASIA
Henny
Sender
India can ill-afford
uncertainty over its
bankruptcy regime
F
or years, Essar Group, an Indian business empire
built by brothers Shashi and Ravi Ruia, happily
racked up debt.
That changed more than two years ago when
the government of prime minister Narendra
Modi introduced a new bankruptcy regime that favoured
banks over borrowers — however powerful the latter may
have been.
The Ruia family lost control of Essar in July 2017 when
the country’s central bank ordered the bankruptcy code to
be used against defaulters, including Essar Steel. Essar Oil
was sold to a Rosneft-led group in 2017. Then last year,
Essar Steel, saddled with debt, was auctioned off to Arce-
lorMittal.
However, ArcelorMittal is still waiting to take control of
Essar Steel after a judge at the National Company Law Tri-
bunal in July upended the process by declaring that all of a
troubled company’s creditors — not just its banks —
needed to be treated equally. India’s Supreme Court will
begin hearing an appeal on that ruling later this week.
India can ill-afford the uncertainty over the govern-
ment’s flagship bankruptcy ruling — and its interminable
judicial procedures. The economy is growing at its slowest
pace in six years, while the flow of credit has been hobbled
by the troubles in the country’s shadow banking sector. By
resolving the future of blighted companies more quickly,
the new bankruptcy code
was supposed to help the
economy through encourag-
If the ruling is
ing foreign investment. upheld, lenders
Until the July ruling, the
new Insolvency & Bank-
are incentivised
ruptcy Code had been con- to press for
sidered a relative success.
Widespread fears that busi-
liquidations
ness owners who borrowed
recklessly would drive their companies into the ground,
and then game the system by buying them back cheaply
via intermediaries, have not materialised
“If you include Essar Steel, about $14bn has been recov-
ered for the banks,” said Vikram Utamsingh of Alvarez &
Marsal, a restructuring advisory firm, commenting on the
effect of the code.
The code adopts practices more common in the west by
giving priority to the claims of banks and other secured
lenders who sit on a creditors committee. It decides how
the monies — whatever they amount to — are distributed.
As a result, it left other creditors, including unsecured
lenders, suppliers and even the country’s tax department,
without influence over the outcome.
The NCLT judge involved in the Essar case, who is not an
expert in either commercial or bankruptcy law, decided in
July though that this arrangement was not fair. He ruled
creditors should be treated equally.
The shock decision has triggered panic among secured
lenders, as well as frustration among distressed debt inves-
tors, such as Hong Kong-based hedge fund SC Lowy, who
bought some of the claims from banks in the belief that
they would ultimately receive more than 90 cents on the
dollar.
If the Supreme Court backs the ruling from the NCLT
judge, both the banks and the hedge funds that bought
some claims estimate they will probably get only around
60 cents on the dollar.
“The judgment is a disaster,” Suharsh Sinha, a restruc-
turing lawyer with AZB Partners in Mumbai, said of the
NCLT ruling. “It is without precedent.”
The July ruling also prompted a rare and swift interven-
tion from the government, which has tried to negate it by
introducing legislation reaffirming the original interpreta-
tion of the code. That is partly because the biggest losers
would be the state-owned banks, such as State Bank of
India.
Essar has become the most egregious challenge to the
new bankruptcy regime, but not the only one. Delays have
become so routine that banks have become reluctant to
file more cases against their recalcitrant corporate bor-
rowers.
If the Supreme Court upholds the NCLT’s ruling, then
any lenders involved in a case under the bankruptcy code
are incentivised to press for a company’s liquidation,
rather than restructuring, as that will allow them to
recover more money, more quickly, Mr Sinha adds.
In the meantime, ArcelorMittal’s wait to get hold of
Essar goes on.
henny.sender@ft.com
cent on the news of the DE Shaw cam-
paign. Its shares have risen 15.1 per cent
over the past five years.
Emerson, which said it has returned
$10bn to shareholders over the past dec-
ade through share repurchases,
announced it would begin a review, led
by its board and outside advisers.
15.1 “Emerson was one of the first indus-
trial companies to address concerning
Rise in the
company’s trends in the macroeconomic environ-
ment, and we’ve announced increased
stocks over the
past five years restructuring actions since May to
proactively manage our cost structure,”
David Farr, the company’s chairman
and chief executive, said.
“The board of directors has been
focused on this issue over the course of
the year and concluded that a thorough
review will inform decisions that drive
strong value creation for our sharehold-
ers in what we expect to be an uncertain
environment,” he added.

Wednesday 16 October 2019
Penny drops
for Facebook’s
payments
partners
Zuckerberg empire hit as regulatory
fears on Libra currency trigger exodus
HANNAH MURPHY — SAN FRANCISCO
KIRAN STACEY — WASHINGTON
When Facebook unveiled plans in June
to spearhead the creation of a digital
currency, co-founder David Marcus
promised unprecedented co-operation
between some of the biggest names in
technology and payments.
“Everyone will play their role,” the
Facebook executive said of the 28 initial
founding members of his Libra scheme.
But this month Facebook was blind-
sided when seven of the companies —
including eBay, PayPal, Visa and Mas-
tercard — stepped back from the
project, leaving its future hanging in
the balance.
Members of the so-called Libra Asso-
ciation became wary of the project after
regulators and politicians warned that a
mass-market digital currency might
pose a threat to the financial system, as
well as lead to money-laundering and
increased financing for terrorism.
Some former members said that
they felt Facebook underestimated the
regulatory scrutiny that the project
would draw, and had oversold its mem-
bers’ commitment, which at that stage
consisted of signing a non-binding
agreement to contribute at least $10m
to its coffers.
Several said that despite its ambitions
to promote Libra as a joint effort, the
project had been tied too closely to Face-
book at a time when the company is
grappling with privacy-related scandals
and antitrust investigations in the US
and Europe.
‘If they had stayed in,
it would have been a case
of having the fox inside
the chicken coop’
“Facebook has been a lightning
rod,” one former member said. There
was a “perception gap” between what
Facebook thought would be a “tremen-
dous rollout” and the gravity of part-
ners’ concerns.
The last straw, several people said,
came after Mark Zuckerberg, Facebook
chief executive, was called to testify
before Congress and several Democratic
senators wrote to the payments mem-
bers urging them to think again.
According to a person with knowledge
of the situation, there were private dis-
cussions between the big regulated pay-
ments members, wrangling over
whether to pull out around the same
time given how “polarised” the project
had become.
While those with existing business
relations with Facebook found the deci-
sion tricky, others noted that the pay-
ments groups in particular were also
probably motivated by their own com-
mercial considerations.
One person close to the project said:
“It is not surprising that it was mainly
the payments companies who left.
They are the ones who stand to lose
most by the emergence of a digital com-
petitor. If they had stayed in, it would
have been a case of having the fox inside
the chicken coop.”
The initial participation of those
members lent the project public credi-
bility and regulatory viability. Without
them, the scope of Libra’s ambitions
may have to be adjusted.
While they never outlined precisely
how Libra would be a part of their busi-
nesses, those members would have
helped bolster adoption of the currency
through their networks.
Ebay could have encouraged thou-
sands of customers to use the low-cost
currency on its platform when people
made purchases for items sold in a dif-
ferent currency, for example.
Libra could have tapped the mer-
chants that use online payments proces-
sors Stripe or PayPal if the currency was
integrated into their services. Facebook
indicated that PayPal would have
offered wallet services for holding Libra,
as its own subsidiary Calibra plans to do.
Mastercard and Visa could have
ensured that Libra was widely accepted
online and in shops.
“Losing payments firms like Visa and
Mastercard, and their ubiquitous pay-
ments rails, could be a major setback for
the use of Libra in everyday payments
like buying coffee,” said Garrick Hile-
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★ FINANCIAL TIMES 13
COMPANIES
man, research associate at the London
School of Economics and research chief
at Blockchain, a crypto wallet company.
Their support would have helped the
project overcome regulatory challenges,
according to Preston Byrne, partner at
law firm Byrne & Storm.
“If any other new business, based
overseas, were attempting to obtain US
payment processing for this offering
under a normal merchant agreement
with a card processor, it would almost
certainly be held up on the grounds that
the business was high- risk. Libra
needed preferential treatment from the
main online payments providers . . . in
order to get over this hurdle.”
He said the payments companies
were now “likely to insist that the Libra
Association deal with them on
arm’s-length commercial terms”.
Dante Disparte, Libra deputy chair-
man, said “there was no reliance on any
company in any particular sector to
help drive the compliance” of the associ-
ation. “Given the opportunities this
project represents,” those participants
could still support Libra as a form of
payment even if they were not part of
the initial governing body.
The future of the project will now
depend largely on whether it can gain
the required regulatory approvals,
which may involve making changes to
the shape of the project and on how the
remaining backers engage with it.
Even the remaining members are
shaky, with some expressing reserva-
tions and monitoring for disruptions.
“The dominoes are falling,” one cur-
rent member said.
A criticism made by some is that the
company should have pegged Libra to
the dollar to create a more straightfor-
ward payments system, rather than a
new currency. Others are urging Face-
book to take more of a back-seat role.
Libra’s executives have signalled that
they will press ahead, despite admitting
that they may well miss the target of
launching by the end of 2020 and will
only launch if they have approvals from
US and EU watchdogs.
One person closely involved with
Libra said they believed early conversa-
tions with the US Treasury about the
project had been “pretty good” and
some sizeable banks were among the
more than 1,500 organisations that have
expressed interest in signing up as Libra
partners. According to Libra, 180 of
those meet the membership criteria.
After its first official meeting on Mon-
day, the association said it had
appointed a five-strong board and
signed off on an initial charter.
“It’s nuts, it’s crazy town,” the person
said of the regulatory scrutiny. “[But
Libra has] more than doubled down on
this. They are not going to bring in Mark
Zuckerberg to Capitol Hill if they are
going to just drop it.”
‘Losing firms like Visa
and Mastercard, and their
ubiquitous rails, could be
a major setback’
Facebook’s Libra unravels
Libra Association members
28 7 left 25
20
Booking
Holdings
eBay
Mastercard 15
21* Mercado Pago
Members PayPal
remaning Stripe
Visa 10
5
0
In Out
* Anchorage/Andreessen Horowitz/Bison Trails/
Breakthrough Initiatives/Calibra/Coinbase/Creative
Destruction Lab/Farfetch/Iliad/Kiva Microfunds/Lyft
Mercy Corps/PayU/Ribbit Capital/Spotify/Thrive
Capital/Uber/Union Square Ventures/Vodafone/
Women’s World Banking/Xapo
Source: FT research

14
Travel & leisure
Thomas Cook chief grilled over collapse
Fankhauser tells MPs that
UK government refused
to support rescue plan
ALICE HANCOCK — LONDON
Thomas Cook’s chief executive said the
failure of the UK government to back a
last-ditch rescue deal led to the travel
company’s collapse as he described hav-
ing no contact with ministers in the days
leading up to its liquidation.
Peter Fankhauser told MPs yesterday
that he had spoken to ministers in the
governments of Bulgaria, Spain, Greece
and Turkey in Thomas Cook’s final
Buoyant US consumers lend Wall St a hand
Retail cheer at JPMorgan, Citi
and Wells Fargo contrasts with
uneven performance elsewhere
ROBERT ARMSTRONG AND
LAURA NOONAN — NEW YORK
As JPMorgan Chase, Wells Fargo and Cit-
igroup kicked off third-quarter earnings
season for Wall Street banks yesterday,
the performance of their credit card
businesses offered one simple takea-
way: the US consumer remains in ebul-
lient mood.
Across the three lenders, customer
card purchases grew 7 per cent, on aver-
age, and loan balances rose 5 per cent.
Loans yields and credit quality were sta-
ble. The healthy results from the banks’
retail operations were in sharp contrast
with uneven performance in their
investment banking and capital mar-
kets divisions.
Jennifer Piepszak, chief financial
officer at JPMorgan Chase, noted that
while global growth is slowing, “the US
consumer is in excellent shape” with
strong credit quality and healthy
demand.
Michael Corbat, chief executive of
Citi, echoed her view: “When you look
globally at the consumer, the con-
sumer’s in fine [condition].”
The strength of the US consumer had
perhaps the most dramatic impact at
Citi, where the retail bank produced
lacklustre results in 2018. The past few
quarters have been a different story,
however.
The bank has long said that the new
cardholders it attracted with promo-
tional interest rates — which Citi prefers
to rich rewards programmes — would
eventually become more valuable cus-
tomers. This appears to be happening.
Citi-branded cards saw an 11 per cent
jump in revenue in the third quarter,
accelerating from 7 per cent in the sec-
ond quarter. Card purchases, loan bal-
Legal Notices
Contracts & Tenders
Financial
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★ FINANCIAL TIMES
COMPANIES
week — but not the UK as the company
tried to piece together a rescue plan.
The group went into liquidation in the
early hours of Monday September 23
salaries totalling £20m in the five years
before its collapse.
A committee led by Labour MP
Rachel Reeves spent two-and-a-half
with employees told only minutes
before a final announcement was made.
Mr Fankhauser defended his pay, say-
ing half of his £8m remuneration was
hours grilling Mr Fankhauser and four
other members of Thomas Cook’s board
about the company’s debt levels,
Mr Fankhauser said he “didn’t dare
criticise the government” but that on
September 22, “we knew that we
given in shares, which he never sold and
were now “nil and void”.
He added that 30 per cent of a
accounting practices and executive pay. needed something that was strong oth- £750,000 bonus payment for 2017 was
Frank Meysman, the company’s erwise we couldn’t have taken off again awarded in shares and that he had not
chairman, said its banks and largest on Monday because the business was on received bonuses in 2018 and 2019 nor
shareholder Fosun were in favour of its knees”. He added that, had the recap- received a 2 per cent annual increase in
agreeing a £900m recapitalisation of italisation plan been successful, Tho- pay this year.
the company up until 4pm on the day mas Cook would have been “the best When asked if he would return some
before it collapsed. But, he added, their funded travel company in Europe”. of his pay, Mr Fankhauser said: “I will
support was conditional on additional The committee started with questions consider what is right but I will not
security from the UK government, about Thomas Cook executives’ salaries decide that today.”
which it refused to give. and bonuses. Board members received In a statement to parliament follow-
Financials. Earnings
JPMorgan says ances, and loan yields all contributed. loss rates would go higher and profita- ‘We need to
that while global Retail deposit growth, long a point of bility would be somewhat pressured,”
growth is weakness at Citi, is picking up, too, ris- said Ken Usdin, analyst at Jefferies. factor in
slowing, ‘the US ing 3 per cent in the quarter. The bank Offsetting the strong results in con- uncertainty
consumer is in puts this down to success with online sumer banking, low rates continue to
excellent shape’ banking and converting card holders to bedevil the banks — and some more [and what]
with strong deposit customers. than others. At both Citi and Wells the full-year
credit quality Even at Wells Fargo, which has strug- Fargo, net interest income was lower
and healthy gled to add new customers since its fake than in the same quarter a year ago and impact in
demand — Eduardo accounts scandal of more than two years fell short of analysts’ expectations. 2020 of
Munoz/Reuters
ago, enjoyed growth of more than 5 per Wells Fargo is particularly sensitive to
cent in its credit card loan book. declining interest rates, and its net the rate
While credit quality in the banks’ card interest income fell by almost $1bn. reductions
portfolios remains good by historical Kyle Sanders, an analyst at Edward
standards, some analysts cautioned that Jones, called the result “pretty weak”. might be’
high card profits were normal late in the “Expectations were low, and they even
cycle and will not last for ever. came in below that level,” he added.
“Cards has always been a high return Marc Mason, chief financial officer at
business and especially with a stable Citi, said the uncertain rate environ-
consumer your card profitability is ment, paired with unease among corpo-
quite good right now but of course over rate leaders, meant the bank would be
the course of time, if people were to cautious in its planning.
expect we’d see a turn in the consumer, “It’s a very different environment
Automobiles
Ford’s Chinese electric car partner
faces lawsuit over unpaid supplier bills
CHRISTIAN SHEPHERD — SHANGHAI
SHERRY FEI JU — BEIJING
Chinese electric-car maker Zotye,
which has a joint venture with Ford in
the country, is facing a lawsuit over
delayed payments to a supplier as the
impact of shrinking vehicle sales rip-
ples across the car industry.
Shenzhen-based lithium battery maker
BAK Power has filed a civil suit for
breach of contract over outstanding
payments, seeking to freeze more than
Rmb40m ($5.6m) in assets of Zhejiang
province-based Zotye Automobile and
three subsidiaries, according to a filing
on the Shenzhen Longgang District Peo-
ple’s Court website.
Zotye confirmed that the case was
going ahead but declined to comment
on how much it owed its suppliers.
Ford and Zotye in 2017 announced
that they planned to invest $756m in a
50:50 joint venture to manufacture
electric vehicles for the Chinese market.
Businesses However, Chinese state media have said
the partnership is being reconsidered
due to the market downturn.
For Sale Ford did not respond to requests for
comment.
The case against Zotye, which was
filed in May, came to light this week
Business for Sale, Business Opportunities,
as Chinese media debated the authen-
Business Services,
Business Wanted, Franchises ticity of a leaked bank memo that iden-
Runs Daily tified four Chinese electric-car compa-
............................................................................................................................. nies, including Zotye, as likely to enter
Classified Business Advertising
bankruptcy proceedings by the end of
UK: +44 20 7873 4000 | Email:
the year.
acs.emea@ft.com
All four companies denied they were
ing the collapse, transport secretary
Grant Shapps said the government did
not want to “risk throwing away good
money after bad” and still have to pay
for the repatriation of the 150,000 holi-
daymakers that were on holidays when
the company went under.
According to Mr Fankhauser, the gov-
ernment did not step in to save Thomas
Cook because it did not want to set a
precedent.
A government spokesperson said the
collapse was “devastating” and added:
“Government officials from a variety of
departments had over 100 meetings
with Thomas Cook in the run-up to its
insolvency.”
then than we expected coming into the
year,” Mr Mason said. “We need to fac-
tor in the uncertainty that’s in the envi-
ronment [and what] the full year
impact in 2020 of the rate reductions
might be.”
In managing the impact of rates,
JPMorgan again separated itself from
peers. Net interest income rose, while its
net interest margin expanded slightly.
The acute sensitivity of the banks to
interest rates was on display yesterday.
Shares of both Citi and Wells Fargo were
lower in early trading — until rising
Treasury yields helped drag shares up
across the banking sector. By early
afternoon trading, the stocks of both
banks, as well as JPMorgan, were up.
The only bank to report yesterday
and miss out on the bounce was Gold-
man, which has been trying to build a
consumer business. Its shares were flat.
See Lex
considering filing for liquidation, amid
rumours of suspension of business and
downsizing.
New energy vehicle sales in China fell
34 per cent last month. That was the
third consecutive month of decline,
fuelling fears of a sharp slowdown that
analysts said could hit dozens of electric
vehicle companies with crippling and
potentially fatal debts.
A hotspot in the market just four
years ago, electric vehicles are now
“exacerbating fallout from a weak car
market because the R&D [research and
development] costs for carmakers have
increased significantly due to investing
in EVs”, said Tu Le, managing director of
Beijing-based market research and
Zotye’s troubles reflect a downturn
in new energy vehicle sales in China
Wednesday 16 October 2019
Financials
Big banks
prove slow
to embrace
climate risk
initiative
DAVID CROW — LONDON
Twenty-eight of the world’s largest
banks have not signed up to a climate
change initiative backed by Bank of
England governor Mark Carney that
encourages businesses to disclose the
risks global warming poses to them.
More than a third of the world’s top 75
banks by assets have still not declared
their support for the Task Force on Cli-
mate-related Financial Disclosures, an
initiative to get companies to calculate
their exposure to climate risk and dis-
close this to investors, according to a
report from BCS Consulting.
The list of banks that do not yet sup-
port the TCFD is dominated by institu-
tions in China, where the initiative has
had little impact. But there are also
Only nine banks have
endorsed the TCFD
this year, compared
with 29 in 2018
some large lenders in the US and Europe
that have not signed up, including Italy’s
UniCredit, Germany’s Commerzbank
and San Francisco-based lender Wells
Fargo, the report said.
UniCredit said it would sign up in the
“very near future” while Commerzbank
said it was “on [its] agenda”.
Wells Fargo said: “We recognise the
growing concerns about climate change
and environmental sustainability, and
we’re working to find solutions.”
The TCFD was launched in 2015 by
the Financial Stability Board and has
been championed by Michael Bloomb-
erg, the media billionaire and Mr Car-
ney, a former FSB chairman.
Although the TCFD is an initiative
aimed at all businesses, support from
banks is seen as crucial because of their
role in financing activities that could
contribute to global warming.
Some large investors have joined Mr
Carney in pushing for banks to do more
to model their climate risk, from the
impact of increased flooding on their
mortgage books to whether new green
policies could damage the business
models and creditworthiness of their
corporate clients.
Only nine banks have endorsed the
initiative this year, compared with 29 in
2018 and 38 in 2017, when companies
could sign up for the first time. In total,
76 banks have signed up as supporters,
accounting for 40 per cent, or $59tn, of
global banking assets, the report said.
However, just 39 banks have started dis-
closing climate risk information in line
with the TCFD framework, accounting
for 24 per cent of global banking assets.
Additional reporting by Olaf Storbeck
See Markets Insight
advisory company Sino Auto Insights.
Mr Le said smaller suppliers to elec-
tric-car makers would be the first to be
hit due to their rapid turnover and the
difficulty they face raising capital from
banks, leaving lawsuits as their best
hope of getting paid.
“They want a place in line. If you are
the last to sue, it’s harder to get more
money back,” he said.
The lawsuit against Zotye comes as Jia
Yueting, the Chinese founder and
former chief executive of Faraday
Future, an electric vehicle company
with ambitions to take on Elon Musk’s
Tesla, filed for personal bankruptcy in
the US this week.
Mr Jia plans to hand over his stake in
the company to help repay personal
debts in China amounting to about
$3.6bn. It is the latest development in
what has become a cautionary tale of
the risks indebted Chinese companies
can bring to their partners.
In 2017, Faraday Future gave up
on plans to build a $1bn factory in
Nevada, US after some of Mr Jia’s assets
were frozen and his Chinese technology
conglomerate LeEco suffered a cash
crunch.
Mr Jia’s bankruptcy filing in the US
would not affect the company’s business
operations, Faraday Future said in a
statement.
Mr Jia has been on a blacklist of indi-
viduals who failed to pay their court-
mandated debts in China since 2017,
when a Beijing court seized millions of
dollars worth of his assets.

Wednesday 16 October 2019
Financials
Active fund
managers reap
the Woodford
whirlwind
Crisis heightens liquidity
fears and further erodes
investor faith in sector
OWEN WALKER AND PETER SMITH
The bombshell sacking of Neil Wood-
ford months after his flagship Equity
Income Fund was suspended will have
consequences far beyond the implosion
of Britain’s best-known stockpicker.
The crisis has heightened concerns
about liquidity and further tarnished
investor confidence in active fund man-
agers at a time when they are battling
the incessant rise of cheaper passive
investment funds and struggling to
produce returns in a low-interest-rate
environment.
“Investors all over are jumpy and
nervous,” said Peter Brunt, an executive
at Morningstar, the fund data company.
“Active managers have taken a blow —
and liquidity is certainly part of that.”
The June suspension of the Equity
Income Fund to protect it from a wave of
withdrawals prompted regulators
across Europe to launch probes into
fund liquidity. Asset managers spent the
summer fielding questions from inves-
tors over whether they would struggle to
sell assets fast enough to meet redemp-
tion requests in the event of a run on
their funds.
Mr Woodford’s downfall was brought
about by such a “liquidity mismatch” as
he struggled to shift his stakes in small-
cap and unquoted companies when
investors fled in droves this year, as well
as chronic underperformance.
Catherine McKinnell MP, interim
chair of the UK’s Treasury select com-
mittee, said: “This appears to be the
beginning of the end of a sorry state of
affairs . . . There is still some time to go
in this uncomfortable episode, which
has raised important questions about
the functioning of the funds industry.”
Having managed more than £15bn
just over two years ago, the fund man-
ager oversaw less than £850m yester-
day morning. By the end of the day he
had no remaining funds after he dra-
matically quit his investment trust and
income focus fund. The £78m of reve-
nue produced by Woodford Investment
Management in the 2018 financial year
will now be reduced to nothing.
The flagship Equity Income Fund was
set up to be, in the industry parlance, a
“widows and orphan” product —
designed to provide cautious investors
with high dividend payments and low
risk returns.
“The whole purpose of that strategy
was for investors to sleep easy at night
and lose less money than the market,”
said one person close to the fund man-
ager. In reality, the portfolio was piled
high with speculative bets on unlisted
companies, which proved hard to sell
when investors bolted.
One equity income investor, speaking
anonymously to the Financial Times,
reacted furiously to the decision to close
the fund.
“It is poor treatment of investors in
the fund not to put the wind-up to a
vote, with an option to appoint a new
manager,” he said. “It makes a mockery
of the principle of treating customers
fairly.”
Among Mr Woodford’s more auda-
cious investments was Industrial Heat, a
North Carolina business that attempted
to develop power sources based on dubi-
ous science. The company attracted
investment from Brad Pitt and Laurene
Powell Jobs, Steve Jobs’ widow, among
others. But Mr Woodford ploughed in
significantly more than the other high-
profile backers, investing £54m for a
quarter of the business.
Other investments proved spectacu-
lar failures, including Prothena, a US
biomedical company that Mr Woodford
owned a third of and which was once
Show’s over: Woodford’s
stricken equity income fund
Assets under management (£bn)
10
8 1-month
6 0
4 1-year
2 5-years
May Jul Apr Jan
2016 2017 2018 2019
Sources: Morningstar: FE Analytics
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★ FINANCIAL TIMES 15
COMPANIES
‘This
appears to
be the
beginning
of the end
of a sorry
state of
affairs’
Catherine
McKinnell MP
‘It is poor
treatment
valued at $1.5bn. In April 2018 the busi- not to
ness reported the failure of a major clin-
ical trial and within an hour of the mar- put the
ket opening, its share price had nose- wind-up
dived 70 per cent.
Paul Myners, the former City minis- to a vote’
ter, told the FT that while the winding
down of the fund would speed up the
Equity income
investor
return of money to investors, it was not
the end of the matter.
“Parliament and regulators need to
look at the absence of effective cus-
tomer voice in the governance of indi-
vidual funds, the complicity and
opaqueness of the role of investment
platforms . . . and how to manage and FT Montage
value unquoted and illiquid assets in
open-ended funds,” he said. “If nothing
is done, we will have repeats of the
Woodford incident.”
During testimony to the Treasury
select committee yesterday, Mark Car-
ney, governor of the Bank of England,
told MPs there was a need to address
structural issues with open-ended funds
that allow investors to withdraw their
money daily.
Asked whether the Woodford episode
highlighted the risks of such funds and
whether there was a need for change, he
said: “Yes and yes . . . There is a struc-
tural problem in open-ended funds.” Mr
Carney has previously stated that such
funds are “built on a lie”.
While it was not the BoE’s direct
responsibility to deal with issues of con-
sumer protection, he said the central
bank was looking at ways to address the
risks such funds might raise for the
functioning of the financial system and
its ability to support economic growth.
Donald Kohn, a member of the BoE’s
financial policy committee, added that
the FPC had been working with the
‘Parliament and regulators
need to look at the absence
of effective customer voice
in the governance of funds’
Financial Conduct Authority to find
ways “to better align the redemption
terms of the fund with the liquidity of
the assets they’re holding”.
The FCA last month published long-
awaited rules aimed at protecting inves-
tors in open-ended funds invested in
hard-to-sell assets. The report was in
response to several UK property funds
that were forced to shut in the aftermath
of the Brexit referendum in 2016, but it
also considered the fallout from the
Woodford suspension and a similar case
last year at Swiss manager GAM.
Under the rules, which take effect in
September 2020, property funds that
fall into the newly created category of
“funds investing in inherently illiquid
assets” will be subject to greater disclo-
sure requirements, enhanced deposi-
tary oversight and will need to produce
liquidity risk contingency plans.
The FCA will also introduce a require-
ment forcing property funds to halt
trading if there is uncertainty about the
value of 20 per cent or more of their
portfolios.
Regulators in other European asset
management hubs have also consulted
with fund managers over potentially
bolstering their fund rules in response
to liquidity risk. In Luxembourg, home
to 37 per cent of European retail fund
assets, with about €3.4tn of funds domi-
ciled in the country, the watchdog
started holding private talks with fund
managers in July. The Irish regulator
had already been concerned about the
prospect of funds sold to UK investors
suffering heavy outflows in the event of
a no-deal Brexit.
Bringing the curtain down on the
Woodford fund does nothing to allay
those concerns.
Additional reporting by Delphine Strauss
See Lex
Woodford’s alarming
performance
Total return from equity income fund (%)
FTSE All Share
Woodford Equity Income Fund
3-months
6-months
3-years
-20 0 20 40
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16 ★ FINANCIAL TIMES Wednesday 16 October 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% -0.07% -1.370%

No change
1.10% 1.19% 0.97% 0.93% 1.87% 0.90% 0.091% 1.590% 0.360% 0.77%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Sep 16 - - Index All World Sep 16 - Oct 15 Index All World Sep 16 - Oct 15 Index All World Sep 16 - Oct 15 Index All World Sep 16 - Oct 15 Index All World Sep 16 - Oct 15 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
12,629.79 22,207.21
2,997.96 2,998.75 16,682.42 7,321.41 12,468.53 2,068.17
16,466.68 2,062.22
7,211.64 21,597.76

Day 1.10% Month -0.29% Year 8.37% Day 0.31% Month -1.28% Year 6.87% Day -0.03% Month -1.99% Year 3.22% Day 1.15% Month 1.29% Year 8.74% Day 1.87% Month 1.00% Year -2.15% Day 0.04% Month 0.93% Year -4.33%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
1,543.70 9,356.10 3,203.93
8,153.54 8,144.32 43,390.89 1,529.26 27,087.63
42,841.46 9,052.00 26,503.93 3,116.17

Day 1.19% Month -0.40% Year 8.63% Day 0.21% Month 1.33% Year -8.50% Day 0.93% Month 0.38% Year 9.26% Day NaN% Month NaN% Year NaN% Day -0.07% Month -3.09% Year 2.73% Day -0.27% Month -3.01% Year 1.48%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
27,076.82 27,047.55 22,365.34 3,030.75
104,881.59 5,702.05 38,506.09
103,680.41 5,602.23 21,969.24 2,991.05
37,104.28

Day 0.97% Month -0.64% Year 6.73% Day 0.56% Month 1.33% Year 25.81% Day 1.05% Month 0.82% Year 11.89% Day 1.21% Month 0.95% Year 16.28% Day -0.56% Month -1.33% Year 14.74% Day 0.76% Month 3.00% Year 10.86%

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 31452.27 31798.11 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 24318.88 24052.36 Philippines Manila Comp 7840.31 7884.29 Taiwan Weighted Pr 11111.80 11066.95 Cross-Border DJ Global Titans ($) 337.64 334.41
Australia All Ordinaries 6763.30 6757.90 Czech Republic
PX 1020.39 1019.52 FTSE Italia Mid Cap 38005.03 37874.77 Poland Wig 56781.82 56647.08 Thailand Bangkok SET 1627.01 1626.00 Euro Stoxx 50 (Eur) 3598.65 3556.26
S&P/ASX 200 6652.00 6642.60 Denmark OMXC Copenahgen 20 1037.06 1028.96 FTSE MIB 22365.34 22097.94 Portugal PSI 20 4990.44 4975.17 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 1100.99 1090.49
S&P/ASX 200 Res 4602.30 4656.80 Egypt EGX 30 14060.82 14180.76 Japan 2nd Section 6737.34 6703.87 PSI General 3199.60 3191.01 UAE Abu Dhabi General Index 5081.52 5087.98 FTSE 4Good Global ($) 7298.98 7225.62
Austria ATX 3032.59 3002.23 Estonia OMX Tallinn 1235.69 1236.07 Nikkei 225 22207.21 21798.87 Romania BET Index 9545.34 9517.82 UK FT 30 3040.90 3040.90 FTSE All World ($) 346.74 343.64
Belgium BEL 20 3757.24 3713.55 Finland OMX Helsinki General 9455.41 9380.73 S&P Topix 150 1341.79 1321.02 Russia Micex Index 2715.26 2697.46 FTSE 100 7211.64 7213.45 FTSE E300 1543.70 1529.44
BEL Mid 8250.72 8205.24 France CAC 40 5702.05 5643.07 Topix 1620.20 1595.27 RTX 1331.03 1321.13 FTSE 4Good UK 6694.78 6683.11 FTSE Eurotop 100 3002.13 2977.08
Brazil Bovespa 104881.59 104301.58 SBF 120 4495.60 4448.98 Jordan Amman SE 1827.22 1824.33 Saudi-Arabia TADAWUL All Share Index 7481.53 7599.06 FTSE All Share 3982.06 3974.44 FTSE Global 100 ($) 1844.92 1829.62
Canada S&P/TSX 60 986.33 982.65 Germany M-DAX 25917.99 25638.47 Kenya NSE 20 2436.64 2432.48 Singapore FTSE Straits Times 3116.17 3124.45 FTSE techMARK 100 5278.59 5291.62 FTSE Gold Min ($) 1763.98 1778.19
S&P/TSX Comp 16466.68 16415.16 TecDAX 2805.82 2803.98 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 344.74 344.74 USA DJ Composite 8954.14 8878.96 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 645.34 614.45 XETRA Dax 12629.79 12486.56 Latvia OMX Riga 1035.73 1036.18 Slovenia SBI TOP 871.40 872.15 DJ Industrial 27047.55 26787.36 FTSE Multinationals ($) 2041.85 2045.11
Chile S&P/CLX IGPA Gen 25881.00 25852.00 Greece Athens Gen 858.16 855.89 Lithuania OMX Vilnius 698.57 695.34 South Africa FTSE/JSE All Share 55573.79 55219.21 DJ Transport 10380.98 10256.10 FTSE World ($) 617.72 611.97
China FTSE A200 10579.12 10620.19 FTSE/ASE 20 2138.12 2133.97 Luxembourg LuxX 1340.27 1320.63 FTSE/JSE Res 20 44447.58 44224.94 DJ Utilities 859.19 859.80 FTSEurofirst 100 (Eur) 4269.52 4226.54
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 26503.93 26521.85 Malaysia FTSE Bursa KLCI 1566.23 1567.59 FTSE/JSE Top 40 49391.20 49110.74 Nasdaq 100 7936.69 7842.33 FTSEurofirst 80 (Eur) 4938.11 4882.23
Shanghai A 3133.55 3151.20 HS China Enterprise 10500.17 10507.85 Mexico IPC 43390.89 43299.53 South Korea Kospi 2068.17 2067.40 Nasdaq Cmp 8144.32 8048.65 MSCI ACWI Fr ($) 520.63 521.14
Shanghai B 269.94 271.13 HSCC Red Chip 4281.95 4302.77 Morocco MASI 11376.17 11362.98 Kospi 200 274.34 274.23 NYSE Comp 13030.40 12896.22 MSCI All World ($) 2175.28 2179.33
Shanghai Comp 2991.05 3007.88 Hungary Bux 40578.18 40733.70 Netherlands AEX 579.87 575.21 Spain IBEX 35 9356.10 9246.50 S&P 500 2998.75 2966.15 MSCI Europe (Eur) 1602.36 1607.73
Shenzhen A 1717.50 1736.74 India BSE Sensex 38506.09 38214.47 AEX All Share 839.96 833.73 Sri Lanka CSE All Share 5840.48 5870.09 Wilshire 5000 30552.16 30225.70 MSCI Pacific ($) 2661.26 2655.13
Shenzhen B 931.69 939.65 Nifty 500 9253.85 9192.65 New Zealand NZX 50 11045.34 11026.60 Sweden OMX Stockholm 30 1670.21 1652.58 Venezuela IBC 51182.02 51782.03 S&P Euro (Eur) 1635.52 1617.27
Colombia COLCAP 1590.86 1583.44 Indonesia Jakarta Comp 6158.17 6126.88 Nigeria SE All Share 26557.44 26533.78 OMX Stockholm AS 630.34 624.26 Vietnam VNI 993.05 993.57 S&P Europe 350 (Eur) 1589.40 1573.85
Croatia CROBEX 2000.79 1986.31 Ireland ISEQ Overall 6613.95 6444.60 Norway Oslo All Share 978.45 974.38 Switzerland SMI Index 10048.75 9964.24 S&P Global 1200 ($) 2446.98 2422.03
Israel Tel Aviv 125 1535.18 1535.18 Pakistan KSE 100 34083.53 34186.26 Stoxx 50 (Eur) 3237.40 3212.85
(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 Oct 15 %Chg %Chg Oct 15 %Chg %Chg Oct 15 %Chg %Chg Oct 15 %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 25.0 235.70 -0.18 Lloyds Banking 203.8 60.82 3.03 Santander 407.0 3.90 0.14 Softbank . 639.4 4258.00 102.00 Royal Bank Of Scotland 226.10 19.4 4.4 Sophos 572.80 38.5 51.6 Intu Properties 49.72 37.7 -54.8 Fixed Line Telecommunication 2351.97 14.2 -14.3
Amazon.com 23.2 1758.51 22.08 Bp 190.9 490.20 -2.55 Asml Holding 379.5 243.20 7.10 Fast Retailing Co., 565.6 65450.00 2180.00 Lloyds Banking 60.82 19.3 19.3 Cybg 134.35 28.7 -26.7 Countrywide 4.92 25.8 -42.1 General Retailers 2274.97 11.5 23.6
Unitedhealth 17.4 237.10 16.51 Diageo 190.2 3164.00 -66.50 Sap Se O.n. 320.6 115.48 0.72 Toyota Motor 377.6 7385.00 116.00 Persimmon 2380.00 17.5 22.6 Galliford Try 743.50 22.3 22.4 Pendragon 11.70 23.0 -47.8 Real Estate Investment Trusts 3178.84 9.3 21.1
Nvidia 17.0 197.32 10.79 Glaxosmithkline 173.1 1655.60 -28.60 Intesa Sanpaolo 307.0 2.21 0.03 Sumco 358.6 1697.00 85.00 Kingfisher 221.60 17.4 5.9 Grafton 855.00 21.7 30.3 Goco 99.00 18.8 43.1 Life Insurance 7318.03 9.3 8.9
Facebook 16.6 189.60 6.32 Royal Dutch Shell 170.9 2264.00 -25.50 Bnp Paribas Act.a 301.0 47.04 1.65 Sony 312.1 6311.00 81.00 Land Securities 946.00 15.3 18.4 Travis Perkins 1436.50 20.6 34.8 Just 64.30 18.0 -30.6 Real Estate & Investment Servic 2679.33 7.7 14.6
Jpmorgan Chase & Co 15.0 121.15 4.70 Barclays 159.6 164.04 6.44 Unilever 262.9 53.07 -0.33 Mitsubishi Ufj Fin,. 284.1 543.20 7.90 British Land 623.00 15.2 17.6 Hammerson 322.00 19.3 -0.1 Gulf Marine Services 6.50 17.5 -36.9 Construction & Materials 6283.42 7.4 27.1
Microsoft 12.2 141.42 1.87 Hsbc Holdings 155.6 605.90 -1.40 Unicredit 250.7 11.21 0.35 Tokyo Electron 263.3 21805.00 300.00 Legal & General 267.80 15.1 16.3 Marks And Spencer 196.70 17.6 -17.1 Capital & Regional 21.65 15.8 -21.7 Banks 3718.09 7.2 0.6
Netflix 10.9 284.75 -0.78 Unilever 146.4 4568.50 -76.50 Siemens Ag Na O.n. 249.5 99.88 0.70 Sumitomo Mitsui Fin,. 220.1 3721.00 70.00 Bt 201.50 14.4 -16.0 Capita 168.75 17.6 47.8 Spire Healthcare 124.50 15.1 12.6 Electricity 7699.48 6.3 17.1
Goldman Sachs 9.4 204.87 -0.95 Rio Tinto 138.1 4019.00 -96.00 Total 248.9 46.46 0.62 Fanuc 207.8 20025.00 560.00 Taylor Wimpey 166.75 14.3 21.8 Onesavings Bank 399.80 17.3 13.4 Volution 190.00 12.4 29.3 Food & Drug Retailers 4070.04 6.1 23.8
Wells Fargo & Co 9.4 51.04 1.77 Reckitt Benckiser 136.7 5940.00 -153.00 Allianz Se Na O.n. 245.0 214.00 3.30 Suzuki Motor 194.8 4750.00 201.00 Next 6800.00 14.0 62.8 Rank 212.50 16.8 51.8 Kainos 490.00 11.6 16.9 Software & Computer Services 1976.60 6.1 13.8
Barclays 164.04 14.0 8.9 Easyjet 1265.00 16.7 14.8 Puretech Health 262.00 11.5 48.9 Industrial Transportation 2384.52 6.0 12.1
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Tui Ag 1027.50 13.7 -10.8 Crest Nicholson Holdings 417.40 16.3 26.3 Superdry 437.60 11.3 -5.9 Forestry & Paper 18248.40 5.0 -0.5
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Unitedhealth 237.10 16.51 7.48 Onesavings Bank 399.80 40.40 11.24 Seadrill 1.67 0.07 4.60 Daiichi Sankyo , 6939.00 421.00 6.46 Fresnillo 610.60 -11.4 -31.2 Vesuvius 341.00 -16.8 -31.5 Purecircle 147.40 -20.2 -42.1 Personal Goods 39036.54 -5.2 11.0
Anthem 251.05 16.23 6.91 Hays 155.40 11.70 8.14 Santander 3.90 0.14 3.76 Kawasaki Kisen Kaisha, 1522.00 84.00 5.84 Relx 1772.50 -5.6 9.6 Renishaw 3316.00 -7.8 -21.2 Woodford Patient Capital Trust 34.40 -14.9 -59.1 Beverages 25188.00 -4.1 13.2
First Republic Bank 103.47 6.29 6.47 Hammerson 322.00 21.90 7.30 Alfa Laval Ab 18.93 0.67 3.67 Sumco 1697.00 85.00 5.27 Unilever 4568.50 -5.5 10.3 Marston's 113.00 -6.8 20.7 Allied Minds 46.20 -11.7 -34.3 Industrial Metals 3705.84 -3.0 -
Cigna 160.50 8.92 5.88 Rank 212.50 13.70 6.89 Bnp Paribas Act.a 47.04 1.65 3.64 Yamaha Motor Co., 2081.00 89.00 4.47 Experian 2435.00 -4.8 29.3 Sirius Minerals 3.55 -6.7 -83.3 Connect 35.00 -10.3 -21.3 Tobacco 29820.80 -2.9 -0.6
Nvidia 197.32 10.79 5.78 Land Securities 946.00 54.20 6.08 B. Sabadell 1.00 0.03 3.19 Mitsui Eng & Shipbuilding Co., 1012.00 43.00 4.44 Diageo 3164.00 -4.7 14.6 Ferrexpo 141.30 -5.5 -25.7 Fuller, Smith & Turner 990.00 -7.5 8.3 Electronic & Electrical Equip. 7382.53 -2.5 17.1
Compass 1954.50 -4.3 19.5 Man 155.10 -4.8 13.0 Marston's 113.00 -6.8 20.7 Pharmaceuticals & Biotech. 16378.28 -2.4 13.9
Downs Downs Downs Downs
Reckitt Benckiser 5940.00 -4.2 -1.4 Centamin 111.85 -4.5 -2.5 Asa Int 309.00 -6.1 -26.4 Oil & Gas Producers 8284.23 -2.0 -1.6
H&r Block 23.04 -0.58 -2.44 Vesuvius 341.00 -75.40 -18.11 Hugo Boss Ag Na O.n. 36.79 -0.81 -2.15 Dena Co., 1916.00 -43.00 -2.19
Smith & Nephew 1834.50 -4.1 28.4 Inmarsat 557.00 -4.5 42.5 Sqn Asset Finance ome Fund 81.00 -5.8 -10.0 Health Care Equip.& Services 8444.22 -0.6 22.2
Conagra Brands 27.13 -0.65 -2.34 Marston's 113.00 -9.00 -7.38 Man Se St O.n. 41.32 -0.84 -1.99 Ebara 2903.00 -50.00 -1.69
British American Tobacco 2697.00 -3.9 8.8 Telecom Plus 1176.00 -4.4 -17.4 Zotefoams 318.00 -5.8 -53.2 Media 8534.50 -0.5 11.7
News 13.48 -0.32 -2.32 Renishaw 3316.00 -244.00 -6.85 Accor 37.56 -0.52 -1.37 Taiyo Yuden Co., 2727.00 -43.00 -1.55
Flutter Entertainment 7590.00 -3.6 15.3 Rhi Magnesita N.v. 3608.00 -4.0 -10.0 Sthree 258.50 -5.5 -5.0 Mobile Telecommunications 3639.40 0.2 7.3
Procter & Gamble 117.31 -2.74 -2.28 Rhi Magnesita N.v. 3608.00 -250.00 -6.48 Relx 23.69 -0.31 -1.30 Recruit Hldgs Co Ltd 3465.00 -42.00 -1.20
Glaxosmithkline 1655.60 -3.4 10.3 Baillie Gifford Japan Trust 805.00 -3.1 18.4 Macau Property Opportunities Fund 118.00 -5.2 -28.0 Aerospace & Defense 4895.90 1.2 12.4
News 13.25 -0.28 -2.07 Bodycote 652.00 -45.00 -6.46 Iberdrola 9.16 -0.10 -1.06 M3,. 2617.00 -20.00 -0.76
Halma 1878.50 -2.9 38.8 Ultra Electronics Holdings 1940.00 -2.4 52.2 Fidelity Japan Trust 155.00 -4.9 18.3 Equity Investment Instruments 10260.01 1.3 11.6
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
Oct 15 Currency Mid Change Mid Change Mid Change Oct 15 Currency Mid Change Mid Change Mid Change Oct 15 Currency Mid Change Mid Change Mid Change Oct 15 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 58.2539 0.2114 64.2978 0.3033 74.4334 1.4012 Indonesia Indonesian Rupiah 14165.0000 26.0000 15634.6740 45.7477 18099.2527 308.7290 Poland Polish Zloty 3.8879 -0.0058 4.2913 -0.0017 4.9677 0.0685 ..Three Month 0.7830 -0.0121 0.8635 -0.0124 - -
Australia Australian Dollar 1.4783 0.0004 1.6317 0.0023 1.8889 0.0294 Israel Israeli Shekel 3.5189 0.0084 3.8840 0.0135 4.4962 0.0791 Romania Romanian Leu 4.3109 -0.0018 4.7581 0.0032 5.5082 0.0817 ..One Year 0.7839 -0.0121 0.8626 -0.0124 - -
Bahrain Bahrainin Dinar 0.3770 0.0000 0.4161 0.0004 0.4817 0.0073 Japan Japanese Yen 108.8050 0.3900 120.0938 0.5611 139.0248 2.6109 Russia Russian Ruble 64.2200 -0.0906 70.8830 -0.0226 82.0567 1.1373 United States United States Dollar - - 1.1038 0.0012 1.2777 0.0195
Bolivia Bolivian Boliviano 6.9100 - 7.6269 0.0083 8.8292 0.1346 ..One Month 108.8048 0.3896 120.0938 0.5611 139.0247 2.6106 Saudi Arabia Saudi Riyal 3.7515 0.0007 4.1407 0.0053 4.7935 0.0740 ..One Month - - 1.1035 -0.1545 1.2779 0.0195
Brazil Brazilian Real 4.1453 0.0190 4.5754 0.0259 5.2967 0.1047 ..Three Month 108.8043 0.3887 120.0939 0.5611 139.0244 2.6100 Singapore Singapore Dollar 1.3704 0.0016 1.5126 0.0034 1.7510 0.0287 ..Three Month - - 1.1030 -0.1545 1.2781 0.0195
Canada Canadian Dollar 1.3210 -0.0015 1.4581 -0.0001 1.6879 0.0239 ..One Year 108.8026 0.3852 120.0940 0.5613 139.0247 2.6091 South Africa South African Rand 14.8450 0.0450 16.3852 0.0675 18.9681 0.3459 ..One Year - - 1.1011 -0.1545 1.2790 0.0195
Chile Chilean Peso 714.9250 2.7050 789.1005 3.8437 913.4904 17.3344 Kenya Kenyan Shilling 103.7500 -0.0500 114.5143 0.0699 132.5658 1.9587 South Korea South Korean Won 1185.1500 0.0500 1308.1127 1.4831 1514.3173 23.1565 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 7.0788 0.0119 7.8132 0.0216 9.0449 0.1529 Kuwait Kuwaiti Dinar 0.3038 -0.0001 0.3353 0.0003 0.3881 0.0058 Sweden Swedish Krona 9.7956 -0.0221 10.8119 -0.0126 12.5163 0.1631 Vietnam Vietnamese Dong 23201.5000 0.5000 25608.7848 28.5614 29645.6163 452.7125
Colombia Colombian Peso 3444.7450 14.1450 3802.1469 19.7455 4401.4995 84.9217 Malaysia Malaysian Ringgit 4.1905 0.0025 4.6253 0.0078 5.3544 0.0848 Switzerland Swiss Franc 0.9986 0.0022 1.1022 0.0036 1.2759 0.0222 European Union Euro 0.9060 -0.0010 - - 1.1576 0.0164
Costa Rica Costa Rican Colon 578.3550 -1.6150 638.3609 -1.0838 738.9891 9.2375 Mexico Mexican Peso 19.2360 -0.0345 21.2318 -0.0149 24.5787 0.3314 Taiwan New Taiwan Dollar 30.6920 0.1050 33.8764 0.1527 39.2165 0.7302 ..One Month 0.9058 -0.0010 - - 1.1575 0.0164
Czech Republic Czech Koruna 23.3672 -0.0549 25.7916 -0.0324 29.8572 0.3862 New Zealand New Zealand Dollar 1.5895 0.0003 1.7544 0.0022 2.0309 0.0313 Thailand Thai Baht 30.3725 -0.0175 33.5237 0.0173 38.8082 0.5698 ..Three Month 0.9053 -0.0010 - - 1.1573 0.0164
Denmark Danish Krone 6.7684 -0.0063 7.4706 0.0013 8.6483 0.1240 Nigeria Nigerian Naira 362.2500 -0.6700 399.8345 -0.3023 462.8624 6.2157 Tunisia Tunisian Dinar 2.8428 0.0037 3.1377 0.0075 3.6323 0.0600 ..One Year 0.9034 -0.0010 - - 1.1565 0.0164
Egypt Egyptian Pound 16.2395 -0.0296 17.9244 -0.0131 20.7499 0.2791 Norway Norwegian Krone 9.1311 0.0219 10.0785 0.0352 11.6672 0.2055 Turkey Turkish Lira 5.8923 -0.0438 6.5036 -0.0411 7.5288 0.0598
Hong Kong Hong Kong Dollar 7.8441 -0.0007 8.6579 0.0086 10.0227 0.1519 Pakistan Pakistani Rupee 156.0500 0.1500 172.2406 0.3534 199.3918 3.2295 United Arab Emirates UAE Dirham 3.6732 - 4.0542 0.0044 4.6933 0.0716
Hungary Hungarian Forint 301.2458 0.6108 332.5008 1.0364 384.9147 6.6386 Peru Peruvian Nuevo Sol 3.3692 0.0056 3.7188 0.0103 4.3050 0.0728 United Kingdom Pound Sterling 0.7826 -0.0121 0.8638 -0.0124 - -
India Indian Rupee 71.5375 0.3288 78.9597 0.4486 91.4065 1.8076 Philippines Philippine Peso 51.6400 0.0800 56.9978 0.1504 65.9826 1.1069 ..One Month 0.7828 -0.0121 0.8637 -0.0124 - -
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 Oct 15 Oct 14 Oct 11 Oct 10 Oct 09 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 3040.90 3040.90 3048.90 2968.50 2949.50 0.00 3135.80 2704.70 Leisure Goods 47.93 Industrial Transport 13.00 Financials 7.51 FTSE 100 Price Change FTSE 100 Price Change
Oct 15 chge% Index Oct 14 Oct 11 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00 3.93 2.74 Tech Hardware & Eq 40.97 Media 12.91 Mobile Telecomms 7.14 3I Group PLC 1064 -7.00 Land Securities Group PLC 946.00 54.20
FTSE 100 (100) 7211.64 -0.03 6492.38 7213.45 7247.08 7059.40 4.54 1.49 14.73 284.24 6633.51 P/E Ratio net - - - - - 0.00 19.44 14.26 Financial Services 25.20 Aerospace & Defense 12.83 Gas Water & Multi 6.49 Admiral Group PLC 2070 32.00 Legal & General Group PLC 267.80 8.20
FTSE 250 (250) 20196.97 1.34 18182.59 19929.90 20041.71 19149.87 3.18 1.59 19.78 494.09 15649.28 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Construct & Material 23.17 Personal Goods 12.53 Mining 6.10 Anglo American PLC 1913.2 -21.80 Lloyds Banking Group PLC 60.82 3.03
FTSE 250 ex Inv Co (190) 21376.33 1.53 19244.33 21053.48 21186.11 20347.89 3.36 1.47 20.26 552.14 16938.69 FT 30 hourly changes Food & Drug Retailer 22.13 Household Goods & Ho 12.35 FTSE SmallCap Index 4.21 Antofagasta PLC 873.00 6.20 London Stock Exchange Group PLC 7208 -90.00
FTSE 350 (350) 4038.49 0.21 3635.71 4030.18 4049.61 3931.84 4.31 1.51 15.41 148.92 7421.21 8 9 10 11 12 13 14 15 16 High Low Health Care Eq & Srv 21.52 Technology 11.94 Basic Materials 4.16 Ashtead Group PLC 2137 3.00 Meggitt PLC 613.60 -2.20
FTSE 350 ex Investment Trusts (289) 3989.21 0.19 3591.34 3981.50 4000.91 3889.97 4.39 1.48 15.37 150.04 3781.82 8 9 10 11 12 13 14 15 16 High Low Support Services 20.27 Industrial Eng 11.70 Nonlife Insurance 3.32 Associated British Foods PLC 2233 46.00 Melrose Industries PLC 207.50 5.50
FTSE 350 Higher Yield (110) 3518.01 0.29 3167.14 3507.95 3529.11 3599.18 6.13 1.35 12.04 177.93 6999.68 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Electronic & Elec Eq 18.03 Travel & Leisure 10.67 Tobacco -0.22 Astrazeneca PLC 6885 -94.00 Mondi PLC 1621 21.00
FTSE 350 Lower Yield (240) 4230.45 0.12 3808.52 4225.28 4240.33 3897.06 2.41 1.91 21.75 94.75 4903.49 Industrials 17.87 Software & Comp Serv 10.48 Telecommunications -0.36 Auto Trader Group PLC 550.40 27.80 Morrison (Wm) Supermarkets PLC 204.60 0.90
FTSE SmallCap (276) 5414.55 -0.21 4874.52 5426.00 5395.03 5586.16 3.86 0.84 30.97 147.49 8339.98 General Retailers 16.38 Equity Invest Instr 10.29 Banks -0.61
FTSE SmallCap ex Inv Co (154) 4380.26 0.40 3943.39 4362.87 4342.08 4745.69 4.47 0.89 25.12 121.21 7099.18 FX: EFFECTIVE INDICES Electricity 16.31 Consumer Goods 9.27 Oil & Gas Producers -0.88
Aveva Group PLC 3832 60.00 National Grid PLC 893.50 9.70
Aviva PLC 406.40 9.60 Next PLC 6800 216.00
FTSE All-Share (626) 3982.06 0.19 3584.91 3974.44 3992.16 3885.07 4.29 1.49 15.68 145.47 7393.06 Real Est Invest & Tr 16.15 Real Est Invest & Se 9.27 Oil & Gas -1.32
Oct 14 Oct 11 Mnth Ago Oct 15 Oct 14 Mnth Ago Bae Systems PLC 555.60 -3.00 Nmc Health PLC 2680 75.00
FTSE All-Share ex Inv Co (443) 3906.55 0.20 3516.93 3898.85 3917.13 3817.68 4.39 1.47 15.49 146.15 3762.14 Health Care 15.53 NON FINANCIALS Index 9.03 Forestry & Paper -2.33 Barclays PLC 164.04 6.44 Ocado Group PLC 1363.5 61.00
FTSE All-Share ex Multinationals (552) 1204.23 1.81 898.54 1182.79 1190.36 1147.00 3.78 1.46 18.08 38.50 2344.94 Australia - - - Sweden - - - Pharmace & Biotech 14.75 Utilities 8.64 Chemicals -5.94 Barratt Developments PLC 683.00 33.40 Pearson PLC 691.00 -
FTSE Fledgling (102) 9341.28 0.35 8409.61 9308.39 9299.33 10538.94 5.90 -0.35 -48.07 211.59 18634.58 Canada - - - Switzerland - - - FTSE 250 Index 14.51 FTSE All{HY-}Share Index 8.63 Industrial Metals & -11.79 Berkeley Group Holdings (The) PLC 4469 103.00 Persimmon PLC 2380 92.00
FTSE Fledgling ex Inv Co (47) 11061.43 0.88 9958.20 10964.50 10897.46 15439.61 13.92 -0.48 -14.95 297.22 21705.99 Denmark - - - UK 78.03 78.60 76.91 Beverages 14.46 Food Producers 8.61 Fixed Line Telecomms -15.33 Bhp Group PLC 1642.2 -32.80 Phoenix Group Holdings PLC 718.90 24.20
FTSE All-Small (378) 3760.30 -0.18 3385.26 3767.09 3746.56 3896.77 3.98 0.74 34.06 101.43 7430.86 Japan - - - USA - - - Consumer Services 13.64 Life Insurance 8.59 Oil Equipment & Serv -25.16 BP PLC 490.20 -2.55 Polymetal International PLC 1147 -7.50
FTSE All-Small ex Inv Co (201) 3270.24 0.41 2944.08 3256.76 3241.11 3576.52 4.76 0.77 27.43 90.36 6714.05 New Zealand - - - Euro - - - FTSE 100 Index 7.71 Automobiles & Parts -37.34 British American Tobacco PLC 2697 -20.00 Prudential PLC 1476 8.50
FTSE AIM All-Share (762) 871.83 0.16 784.88 870.45 869.28 996.89 1.73 1.39 41.51 10.68 989.92 Norway - - -
British Land Company PLC 623.00 32.20 Reckitt Benckiser Group PLC 5940 -153.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Bt Group PLC 201.50 4.24 Relx PLC 1772.5 -44.00
Oil & Gas (12) 8565.88 -0.77 7711.55 8632.18 8644.72 9743.14 6.13 1.36 12.02 398.25 8982.94 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bunzl PLC 1985.5 1.50 Rentokil Initial PLC 450.00 -1.70
Oil & Gas Producers (8) 8311.67 -0.81 7482.69 8379.74 8390.09 9365.42 6.13 1.36 11.99 384.09 9029.46 Burberry Group PLC 1978.5 -15.00 Rightmove PLC 568.20 16.80
Oil Equipment Services & Distribution (4) 8193.37 2.44 7376.19 7998.01 8136.55 15521.57 6.66 0.97 15.44 544.02 7042.76 FTSE GLOBAL EQUITY INDEX SERIES Carnival PLC 3128 18.00 Rio Tinto PLC 4019 -96.00
Basic Materials (25) 5840.84 -1.02 5258.29 5901.13 6019.56 5872.13 5.77 2.45 7.09 331.00 6710.06 Centrica PLC 70.04 2.52 Rolls-Royce Holdings PLC 746.20 -6.20
Chemicals (8) 13198.05 0.20 11881.73 13171.17 13139.21 15163.71 2.55 2.36 16.60 302.92 12425.71 Oct 9 No of US $ Day Mth YTD Total
YTD Gr Div Oct 9 No of US $ Day Mth YTD Total YTD Gr Div Coca-Cola Hbc AG 2513 -12.00 Royal Bank Of Scotland Group PLC 226.10 10.90
Forestry & Paper (1) 19912.36 1.31 17926.37 19654.40 19599.12 22688.54 4.45 2.44 9.22 885.56 23518.00 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Compass Group PLC 1954.5 -47.50 Royal Dutch Shell PLC 2255.5 -22.00
Industrial Metals & Mining (2) 3991.78 -2.97 3593.66 4114.08 4274.18 5511.05 17.63 1.48 3.84 538.98 4698.95 FTSE Global All Cap 8943 575.37 0.5 -1.8 12.1 864.98
14.4 2.5 Oil & Gas Producers 102 325.03 0.6 0.6 -1.0 584.52 2.4 4.7 Crh PLC 2732 -5.00 Royal Dutch Shell PLC 2264 -25.50
Mining (14) 16693.42 -1.25 15028.48 16904.75 17301.83 16322.95 5.98 2.51 6.67 998.77 10105.65 FTSE Global Large Cap 1791 512.87 0.5 -1.7 12.3 793.27
14.8 2.6 Oil Equipment & Services 37 240.31 0.5 0.5 7.8 380.55 11.8 5.0 Croda International PLC 4754 16.00 Rsa Insurance Group PLC 524.20 7.80
FTSE Global Mid Cap 2163 750.95 0.5 -1.9 11.6 1064.49
13.7 2.3 Basic Materials 352 457.05 0.3 0.3 2.1 750.11 5.2 3.6 Dcc PLC 6880 38.00 Sage Group PLC 695.60 -
Industrials (106) 5525.67 0.26 4974.56 5511.24 5531.78 5170.41 2.53 1.03 38.26 110.52 6026.84
Construction & Materials (15) 6511.29 0.93 5861.88 6451.18 6409.36 5822.57 2.60 0.52 74.09 157.68 7351.72 FTSE Global Small Cap 4989 780.05 0.4 -2.2 11.4 1065.22
13.2 2.1 Chemicals 161 684.73 0.5 0.5 3.5 1116.62 6.1 3.0 Diageo PLC 3164 -66.50 Sainsbury (J) PLC 216.40 2.60
Aerospace & Defense (10) 5107.27 -0.45 4597.89 5130.39 5118.49 5252.66 2.41 -0.29 -145.22 86.61 5745.92 FTSE All-World 3954 337.47 0.5 -1.7 12.1 536.66
14.6 2.6 Forestry & Paper 20 233.76 0.8 0.8 -5.6 429.19 -2.3 4.2 Evraz PLC 404.00 -13.70 Schroders PLC 3046 116.00
General Industrials (6) 4658.95 0.63 4194.28 4629.85 4646.75 4764.29 3.49 0.83 34.54 120.09 5697.98 FTSE World 2585 601.24 0.6 -1.7 12.7 1283.34
15.1 2.5 Industrial Metals & Mining 93 318.06 0.0 0.0 -11.1 522.33 -8.3 5.0 Experian PLC 2435 -20.00 Scottish Mortgage Investment Trust PLC 495.00 -0.40
Electronic & Electrical Equipment (10) 8718.17 -2.00 7848.65 8896.21 8864.08 7416.77 1.65 2.00 30.30 118.04 8277.39 FTSE Global All Cap ex UNITED KINGDOM In 8637 602.68 0.5 -1.8 12.6 890.26
14.9 2.4 Mining 78 637.90 -0.2 -0.2 9.0 1068.14 13.4 4.2 Ferguson PLC 6426 -2.00 Segro PLC 822.40 13.40
Industrial Engineering (12) 12803.30 -1.02 11526.35 12934.64 13002.60 13113.51 2.60 1.57 24.55 328.57 16496.17 FTSE Global All Cap ex USA 7126 469.16 0.1 -1.5 7.1 766.16
10.1 3.2 Industrials 758 404.26 0.5 0.5 15.3 609.85 17.3 2.1 Flutter Entertainment PLC 7590 -10.00 Severn Trent PLC 2253 73.00
Industrial Transportation (6) 3838.10 1.08 3455.30 3797.20 3869.84 4257.48 5.79 0.86 20.16 164.65 3840.89 FTSE Global All Cap ex JAPAN 7593 591.21 0.6 -2.1 12.4 897.23
14.7 2.5 Construction & Materials 148 500.55 0.4 0.4 13.4 791.72 15.9 2.4 Fresnillo PLC 610.60 -23.80 Smith & Nephew PLC 1834.5 -26.00
Support Services (47) 8497.26 0.67 7649.78 8440.46 8516.71 7523.13 2.30 1.65 26.37 146.58 9296.50 FTSE Global All Cap ex Eurozone 8282 601.51 0.5 -1.8 12.4 885.67
14.7 2.4 Aerospace & Defense 37 882.29 0.5 0.5 24.9 1312.92 26.9 1.9 Glaxosmithkline PLC 1655.6 -28.60 Smith (Ds) PLC 349.20 2.60
FTSE Developed 2172 548.50 0.6 -1.7 13.1 831.35
15.4 2.5 General Industrials 65 197.59 0.5 0.5 4.3 324.52 6.5 2.5 Glencore PLC 233.65 2.80 Smiths Group PLC 1603 16.00
Consumer Goods (43) 18919.44 -0.82 17032.48 19076.42 19064.27 18632.80 4.37 1.64 13.97 674.78 15340.78
FTSE Developed All Cap 5695 573.64 0.6 -1.8 13.0 857.67
15.3 2.4 Electronic & Electrical Equipment 137 440.90 0.2 0.2 17.5 605.48 19.5 1.9 Halma PLC 1878.5 -18.50 Smurfit Kappa Group PLC 2564 76.00
Automobiles & Parts (2) 4187.31 1.15 3769.68 4139.74 4223.17 8072.54 2.61 2.89 13.27 108.61 4280.85
FTSE Developed Large Cap 900 510.62 0.6 -1.7 13.3 787.14
15.7 2.6 Industrial Engineering 152 712.76 0.3 0.3 8.0 1067.11 10.4 2.6 Hargreaves Lansdown PLC 1838.5 48.50 Spirax-Sarco Engineering PLC 7530 -90.00
Beverages (5) 25214.60 -1.76 22699.79 25667.43 25533.17 20621.53 2.19 1.72 26.48 535.18 18883.06
FTSE Developed Europe Large Cap 233 346.60 0.7 -2.0 8.2 628.26
11.9 3.7 Industrial Transportation 129 683.45 0.8 0.8 11.0 1035.68 13.0 2.4 Hikma Pharmaceuticals PLC 2015 -8.00 Sse PLC 1314 32.50
Food Producers (11) 7184.63 1.22 6468.06 7097.70 7073.81 7202.32 2.53 1.95 20.34 109.88 6512.42
FTSE Developed Europe Mid Cap 350 550.33 0.4 -2.9 6.1 880.00
9.1 3.2 Support Services 90 463.16 0.8 0.8 25.3 662.46 26.8 1.5 Hiscox LTD 1601 35.00 St. James's Place PLC 1025 31.20
Household Goods & Home Construction (15)13951.69 -0.05 12560.19 13959.28 13995.30 13771.33 4.34 1.93 11.95 583.93 10954.26
FTSE Dev Europe Small Cap 725 758.62 0.3 -2.8 6.1 1169.46
8.8 3.2 Consumer Goods 549 479.38 0.4 0.4 13.2 752.88 15.8 2.7 HSBC Holdings PLC 605.90 -1.40 Standard Chartered PLC 662.60 7.80
Leisure Goods (2) 12979.06 0.33 11684.58 12936.48 13431.66 10438.90 3.55 1.38 20.50 375.72 13213.79
FTSE North America Large Cap 264 629.08 0.9 -1.8 16.7 897.49
18.6 2.1 Automobiles & Parts 134 340.48 0.3 0.3 0.6 523.13 3.7 3.6 Imperial Brands PLC 1849.6 8.60 Standard Life Aberdeen PLC 289.20 8.80
Personal Goods (6) 33906.32 -1.51 30524.63 34426.31 34459.82 30495.48 2.94 2.59 13.13 758.92 24501.89
FTSE North America Mid Cap 413 863.86 0.8 -2.5 16.3 1138.82
17.9 1.9 Beverages 66 707.69 0.4 0.4 18.4 1119.68 20.5 2.3 Informa PLC 788.60 8.20 Taylor Wimpey PLC 166.75 4.20
Tobacco (2) 29820.86 -0.47 26846.63 29961.93 29946.25 36419.85 8.12 1.19 10.32 1767.59 22115.79
FTSE North America Small Cap 1340 867.21 0.7 -2.9 14.9 1106.10
16.3 1.7 Food Producers 132 655.75 0.2 0.2 17.3 1052.00 19.8 2.3 Intercontinental Hotels Group PLC 4726 14.50 Tesco PLC 244.20 5.10
Health Care (18) 11951.90 -1.28 10759.86 12106.41 12031.18 10301.88 3.58 0.88 31.71 360.26 10016.77
FTSE North America 677 415.02 0.9 -1.9 16.6 605.23
18.4 2.0 Household Goods & Home Construction 60 480.74 0.4 0.4 20.0 750.58 22.8 2.5 International Consolidated Airlines Group S.A. 515.20 20.80 Tui AG 1027.5 25.50
Health Care Equipment & Services (9) 8479.55 -0.26 7633.83 8501.65 8530.80 6994.17 1.65 2.42 25.02 134.35 7659.88
FTSE Developed ex North America 1495 247.01 0.1 -1.3 7.3 434.56
10.4 3.3 Leisure Goods 44 217.67 -0.2 -0.2 17.6 296.19 19.1 1.3 Intertek Group PLC 5188 - Unilever PLC 4568.5 -76.50
Pharmaceuticals & Biotechnology (9) 16260.72 -1.42 14638.93 16494.45 16369.92 14110.39 3.85 0.79 32.95 522.53 12217.24
FTSE Japan Large Cap 184 368.44 -0.7 1.0 2.6 Personal Goods
8.9 504.35
11.5 100 847.39 0.8 0.8 18.2 1239.93 20.1 1.8 Itv PLC 134.55 6.30 United Utilities Group PLC 865.40 43.20
Consumer Services (88) 5334.71 0.82 4802.64 5291.06 5315.65 5014.40 2.95 1.92 17.68 138.75 5357.85 FTSE Japan Mid Cap 321 586.28 -0.5 3.4 6.0 762.89
8.1 2.3 Tobacco 13 878.94 0.8 0.8 -1.5 2043.95 3.0 6.7
Food & Drug Retailers (6) 4230.05 2.31 3808.16 4134.43 4179.98 3772.67 2.56 1.64 23.75 102.76 5212.20 Jd Sports Fashion PLC 781.00 12.60 Vodafone Group PLC 161.82 0.82
FTSE Global wi JAPAN Small Cap 845 639.39 -0.1 4.0 8.2 861.14
10.5 2.2 Health Care 280 531.01 0.5 0.5 4.6 800.27 6.4 2.1 Johnson Matthey PLC 3000 18.00 Whitbread PLC 4279 109.00
General Retailers (25) 2175.22 2.69 1958.27 2118.24 2103.84 2175.36 3.17 2.02 15.61 51.08 2688.87
FTSE Japan 505 155.38 -0.6 1.5 2.5 Health Care Equipment & Services
8.4 238.20
10.9 94 1009.31 1.1 1.1 8.5 1204.24 9.4 1.1 Just Eat PLC 629.80 9.20 Wpp PLC 951.00 -5.60
Media (19) 8663.74 -0.07 7799.65 8670.00 8720.08 7982.77 3.01 1.87 17.75 249.95 5725.25
FTSE Asia Pacific Large Cap ex Japan 929 652.93 -0.4 -2.1 4.6 1098.74
7.3 3.0 Pharmaceuticals & Biotechnology 186 358.57 0.1 0.1 2.8 570.85 5.0 2.6 Kingfisher PLC 221.60 7.50
Travel & Leisure (38) 9580.55 0.35 8625.02 9547.51 9600.07 9098.97 2.96 2.00 16.84 241.50 9711.80
FTSE Asia Pacific Mid Cap ex Japan 845 799.67 -0.2 -1.4 -0.2 1291.20
2.3 3.2 Consumer Services 458 515.44 0.6 0.6 15.3 712.95 16.7 1.5
Telecommunications (6) 2437.20 0.83 2194.12 2417.09 2417.35 2464.21 5.51 0.36 50.92 73.67 3146.02 FTSE Asia Pacific Small Cap ex Japan 1780 507.61 -0.2 -1.4 1.7 801.70
4.2 3.1 Food & Drug Retailers 66 269.64 0.1 0.1 2.9 396.99 5.1 2.6
Fixed Line Telecommunications (3) 2438.26 2.04 2195.08 2389.56 2386.10 2858.57 7.31 1.40 9.74 123.49 2606.14
Mobile Telecommunications (3) 3633.89 0.35 3271.46 3621.34 3624.00 3438.20 4.77 -0.30 -69.66 81.43 4202.98
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
1774 511.70
3248 706.43
-0.4
-0.1
-2.1
-1.8
4.1 914.68
6.8 3.0 General Retailers
4.3 1129.41
7.2 3.1 Media
151 826.70
93 355.30
0.8
0.4
0.8
0.4
19.2 1103.20
14.7 494.68
20.3
16.3
1.1
1.8
UK STOCK MARKET TRADING DATA
Utilities (8) 7064.15 2.31 6359.60 6904.61 7011.17 6772.85 6.12 0.59 27.64 352.47 9290.45 FTSE Emerging Large Cap 891 674.39 -0.1 -2.1 4.2 1085.50
7.0 3.0 Travel & Leisure 148 494.03 0.5 0.5 13.1 696.08 14.9 1.9 Oct 15 Oct 14 Oct 11 Oct 10 Oct 09 Yr Ago
Electricity (3) 7682.00 2.59 6915.82 7488.20 7645.98 6924.50 7.22 0.32 42.89 554.55 13303.69 FTSE Emerging Mid Cap 891 874.24 -0.1 -0.8 4.6 1392.87
7.6 3.7 Telecommunication 94 155.19 -0.3 -0.3 8.4 322.31 12.7 4.4 - - - - - -
Gas Water & Multiutilities (5) 6523.53 2.23 5872.89 6381.34 6469.12 6369.53 5.79 0.69 24.99 280.73 8484.76 FTSE Emerging Small Cap 1466 699.04 -0.3 -1.0 5.3 1071.62
8.3 3.3 Fixed Line Telecommuniations 40 130.84 -0.6 -0.6 10.6 303.40 15.9 4.9 Order Book Turnover (m) 162.78 209.67 209.67 209.67 146.96 195.67
Financials (304) 4869.26 1.42 4383.62 4800.88 4842.12 4697.08 4.32 1.61 14.40 198.12 4972.45 FTSE Emerging Europe 75 378.75 0.2 -2.0 16.0 673.20
22.8 6.8 Mobile Telecommunications 54 161.66 0.0 0.0 5.3 295.75 8.5 3.6 Order Book Bargains 1203050.00 1465848.00 1465848.00 1465848.00 740132.00 760005.00
Banks (10) 3669.60 1.72 3303.61 3607.41 3634.59 3717.42 5.54 1.70 10.62 202.93 3056.07 FTSE Latin America All Cap 235 884.54 0.4 -1.2 5.1 1461.61
7.8 3.1 Utilities 188 308.80 0.3 0.3 15.0 651.17 18.3 3.4 Order Book Shares Traded (m) 2127.00 2585.00 2585.00 2585.00 1478.00 1304.00
Nonlife Insurance (8) 3633.81 1.82 3271.39 3568.83 3635.73 3605.80 3.93 1.53 16.62 139.66 6982.55 FTSE Middle East and Africa All Cap 330 632.08 -0.4 -2.8 3.9 Electricity
-0.7 1058.01
2.3 131 347.67 0.4 0.4 16.2 722.63 19.5 3.2 Total Equity Turnover (£m) 6267.17 5858.72 5858.72 5858.72 5986.83 4742.17
Life Insurance/Assurance (7) 7425.70 1.80 6685.09 7294.29 7441.80 7591.93 5.04 1.78 11.12 370.82 8082.58 FTSE Global wi UNITED KINGDOM All Cap In 306 309.58 0.3 -2.2 2.5 569.82
6.4 4.5 Gas Water & Multiutilities 57 308.74 0.0 0.0 12.5 672.25 16.1 3.8 Total Mkt Bargains 1349020.00 1639339.00 1639339.00 1639339.00 878029.00 893523.00
Real Estate Investment & Services (18) 2592.75 1.34 2334.16 2558.58 2568.63 2467.68 2.11 1.96 24.20 40.88 7318.79 FTSE Global wi USA All Cap 1817 713.16 0.9 -2.1 1.9 Financials
16.4 983.62
18.1 847 239.63 0.5 0.5 9.6 420.64 12.8 3.4 Total Shares Traded (m) 8622.00 7162.00 7162.00 7162.00 4535.00 5528.00
Real Estate Investment Trusts (40) 2854.55 3.07 2569.85 2769.57 2792.39 2588.53 4.07 0.27 90.62 93.83 3928.98 FTSE Europe All Cap 1457 405.16 0.6 -2.2 7.9 707.04
11.4 3.7 Banks 278 189.24 0.3 0.3 2.8 362.31 6.7 4.4 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (38) 9974.68 0.99 8979.84 9877.22 9977.96 8297.86 3.28 1.71 17.86 290.60 12399.67 FTSE Eurozone All Cap 661 393.83 0.9 -2.1 8.7 687.56
12.1 3.4 Nonlife Insurance 71 287.67 0.5 0.5 12.3 440.24 14.8 2.2 (c) Market closed.
Equity Investment Instruments (183) 10492.93 0.09 9446.40 10483.39 10486.91 9923.53 2.59 1.92 20.11 214.94 6086.98 FTSE RAFI All World 3000 3283 6529.60 0.4 -1.8 7.3 9265.11
10.4 3.4 Life Insurance 60 214.52 -0.1 -0.1 7.2 369.36 10.6 3.5
Non Financials (322) 4733.34 -0.24 4261.25 4744.87 4759.11 4635.97 4.29 1.44 16.19 165.91 7688.97 FTSE RAFI US 1000 1061 11645.72 0.8 -2.3 12.7 16145.96
15.0 2.6 Financial Services 208 330.23 1.1 1.1 19.1 474.95 21.0 1.9
Technology (16) 2014.95 0.88 1813.98 1997.42 1954.39 1814.03 3.14 0.84 37.77 61.03 2765.37 FTSE EDHEC-Risk Efficient All-World 3954 396.99 0.4 -1.7 10.8 582.97
13.1 2.6 Technology 278 312.54 1.0 1.0 23.6 395.68 25.1 1.4 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 2219.56 0.95 1998.19 2198.70 2148.16 2025.46 3.23 0.79 39.36 69.12 3222.88 FTSE EDHEC-Risk Efficient Developed Europe 583 300.15 0.4 -2.6 5.2 488.80
8.2 3.3 Software & Computer Services 146 545.59 1.1 1.1 21.1 648.58 21.8 0.8 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (2) 3515.12 -0.29 3164.53 3525.38 3533.19 2440.07 1.67 2.65 22.58 57.83 4295.15 Oil & Gas 150 332.90 0.6 -2.9 0.3 585.83
3.8 4.7 Technology Hardware & Equipment 132 232.39 0.8 0.8 27.0 311.65 29.4 2.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 11 101.44 -0.1 -0.1 7.4 142.09 8.9 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 150 335.02 0.2 0.2 5.1 596.47 8.0 3.2 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 7227.32 7231.24 7198.79 7199.83 7191.71 7196.74 7181.39 7192.07 7222.01 7242.13 7177.99 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 20059.72 19994.65 20017.15 19953.44 19984.44 19983.24 20039.09 19993.99 20299.10 20316.20 19939.49 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 5422.54 5426.89 5424.35 5421.81 5418.47 5409.98 5408.14 5407.28 5433.23 5436.28 5405.06
FTSE All-Share 3984.71 3984.43 3970.76 3969.08 3966.42 3968.39 3963.38 3966.61 3990.45 3992.42 3961.46 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:07:06:45 Day's Low13:04:30 FTSE 100 2010/11 High: 7686.61(29/07/2019) 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:07:08:00 Day's Low13:04:00 FTSE 100 2010/11 High: 4186.17(29/07/2019) 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 1Spatial Int 10.861 8.833 0.666L 0.826L 0.600L 0.110L 0.00000 0.00000 - 0.000 0.000 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Aberdeen New Thai Investment Trust Int 15.645 0.780L 92.720 6.420L 0.00000 7.00000 - 11.000 18.100 09/24 100.00 JARA JPMorgan Global Core Real Assets Ltd 106.50 1.01 106.51 100.02 15865.8
There are currently no rights offers by any companies listed on the LSE. 09/19 10.00 NWOR National World PLC 11.00 0.00 11.50 10.00 594.0

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.
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Wednesday 16 October 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♦ 37.89 0.42 38.75 26.80 5.38 16.06 276886.34 Lockheed 384.02 1.41 399.96 241.18 2.25 18.64 108446.29
ANZ 27.83 0.16 29.30 22.98 5.92 12.53 53362.62 Nokia 4.57 0.01 5.74 4.17 1.13 -44.07 28397.56 AstellasPh 1638 52.00 1891.5 1356 2.35 13.66 28435.21 AtlasCpcoB 268.30 3.40 287.50 187.68 1.24 18.21 10688.04 AutomData 164.02 1.56 174.50 121.40 1.87 31.18 71135.32 Lowes 112.48 1.81 118.23 84.75 1.85 33.37 86811.91
BHPBilltn 36.08 -0.45 42.33 30.31 4.85 14.60 71897.19 SampoA 36.22 0.39 43.38 34.45 8.15 12.81 22153.84 Bridgestne 4294 90.00 4661 3888 3.78 11.46 30054.11 Ericsson 83.22 1.22 96.74 73.00 1.271308.85 26102 Avago Tech 287.04 5.38 323.20 208.23 3.53 38.20 113860.38 Lyondell 88.20 0.83 98.37 68.61 4.61 9.16 29568.67
CmwBkAu 79.31 0.24 83.99 65.26 5.66 16.67 94971.76 France (€) Canon 2908.5 44.00 3607 2687.5 5.58 16.83 35653.24 H&M 206.50 2.55 207.65 123.50 4.95 25.52 30792.27 BakerHu 22.52 0.20 31.26 20.09 3.21 60.62 11640.37 Marathon Ptl 64.10 0.96 80.46 43.96 3.10 13.88 42199.91
CSL 248.39 4.65 248.88 173.00 1.04 39.58 76258.75 Airbus Grpe 119.44 1.14 133.86 77.50 1.43 23.97 102578.23 CntJpRwy 22810 165.00 26255 20365 0.64 9.86 43186.07 Investor 479.00 2.50 483.70 366.10 2.88 12.63 22272.95 BankAm 29.86 0.72 31.17 22.66 2.02 10.58 277922.58 Marsh&M♦ 97.87 0.75 103.37 74.30 1.70 33.62 49552.68
NatAusBk 28.45 0.09 30.00 22.52 7.17 13.44 55483.55 AirLiquide 118.70 0.20 119.70 92.77 2.10 25.36 56192.63 Denso 4861 161.00 5369 4081 2.92 15.92 35202.43 Nordea Bk 70.00 0.50 89.31 57.20 11.04 10.97 28941.24 Baxter 87.92 0.72 89.93 61.05 0.90 29.29 44888.07 MasterCard♦ 279.45 3.07 293.69 171.89 0.33 42.89 280319.24
Telstra 3.54 0.03 4.01 2.71 3.68 18.78 28480.05 AXA 23.91 0.41 23.99 18.43 5.81 36.77 63736.59 EastJpRwy 10485 25.00 10940 9063 1.45 12.76 36419.48 SEB 93.26 1.30 99.38 78.88 6.82 10.24 20659.89 BB & T 52.79 0.81 53.90 40.68 3.08 13.01 40441.97 McDonald's 207.30 -1.08 221.93 162.90 2.17 27.13 157432.78
Wesfarmers 39.53 -0.13 40.45 30.40 5.80 22.15 30318.88 BNP Parib 47.04 1.65 50.08 38.14 6.65 7.49 64890.2 Fanuc 20025 560.00 22060 15570 2.42 28.82 37551.01 SvnskaHn 93.04 0.68 107.40 82.02 6.27 10.09 18236.75 BectonDick 254.07 3.35 264.74 208.62 1.21 89.74 68587.25 McKesson 137.52 3.42 150.82 106.11 1.14 43.76 25428.02
Westpc 28.94 0.04 30.05 23.30 6.69 14.06 68320.28 ChristianDior 452.20 4.60 498.20 319.70 1.37 29.38 90094.37 FastRetail 65450 2180 70230 47040 0.75 39.87 63807 Swedbank 141.10 1.60 214.80 120.75 10.67 7.20 16305.9 BerkshHat 314700 3060335109.08 279410 - 17.75 223385.39 Medtronic♦ 108.25 0.68 112.05 81.66 1.97 31.82 145235.72
Woolworths 37.38 0.11 38.10 27.03 2.65 31.59 31890.57 Cred Agr 11.42 0.17 12.51 9.10 6.26 8.70 36115.22 Fuji Hvy Ind 3056 73.50 3343 2208.5 4.78 13.85 21603.8 Telia Co 44.70 0.47 44.81 38.91 5.53 22.20 19209.27 Biogen 227.03 1.27 344.00 215.78 - 8.43 41875.05 Merck 84.89 0.20 87.35 66.10 2.52 23.68 217350.2
Belgium (€) Danone 80.30 0.78 82.38 60.20 2.50 23.21 60811.81 Hitachi 4109 107.00 4198 2767.5 1.31 15.48 36529.16 Volvo 139.70 1.40 155.00 112.85 3.71 9.19 23546.69 BkNYMeln 44.43 0.52 54.27 40.52 2.53 11.49 41882.47 Metlife 46.50 0.75 51.16 37.76 3.67 7.64 43544.81
AnBshInBv 83.91 0.78 92.71 56.39 2.20 24.87 156821.13 EDF 9.43 0.01 15.73 9.31 3.41 15.43 31755.68 HondaMtr 2899.5 71.00 3323 2412 3.92 9.34 48272.01 BlackRock 442.82 8.61 487.45 360.79 2.92 16.77 68448.36 Microsoft 141.42 1.87 142.37 93.96 1.28 27.841079761.42
Switzerland (SFr)
KBC Grp 62.10 1.26 68.70 48.65 5.84 10.30 28524.58 Engie SA 15.10 -0.01 15.24 11.31 5.15 44.16 40574.65 JapanTob 2395.5 26.00 2966.5 2179 6.43 10.65 44032.9 Boeing 372.09 -1.09 446.01 292.47 2.03 43.25 209378.6 Mnstr Bvrg 56.03 -0.52 66.38 47.74 - 29.07 30529.59
ABB 18.78 0.31 21.45 17.25 4.19 42.58 40776.95
Esslr Intl 128.75 1.30 129.55 100.60 1.60 39.69 32686.21 KDDI 2970 4.50 3008 2331.5 3.58 11.53 64293.55 BrisMySq♦ 51.90 0.34 59.28 42.48 3.15 13.64 84896.28 MondelezInt 54.34 0.12 56.72 38.79 1.92 21.23 78366.46
Brazil (R$) CredSuisse 12.25 0.27 14.14 10.36 2.20 13.09 31343.81
Hermes Intl 638.00 3.80 656.60 462.40 0.74 44.50 74341.37 Keyence 65510 1320 73870 50780 0.31 36.11 73216.01 CapOne 90.54 1.93 98.62 69.90 1.77 7.79 42583.95 Monsanto 127.95 0.02 127.97 114.19 1.64 23.62 56462.29
Ambev 18.97 0.25 20.77 14.54 1.83 24.32 71998.81 Nestle 105.94 -0.12 113.20 77.74 2.38 33.02 315735.27
LOreal 244.20 0.40 258.90 182.00 1.63 33.63 151432.58 MitsbCp 2694.5 13.50 3490 2520 4.70 7.71 39377.44 CardinalHlth 47.65 0.87 58.31 41.03 4.02 10.48 13933.06 MorganStly 42.83 0.58 48.67 36.74 2.81 9.28 70779.79
Bradesco 32.18 0.32 35.89 23.49 1.05 15.25 31299.43 Novartis 86.33 0.37 94.40 71.69 3.23 16.51 218505.1
LVMH 380.50 1.25 392.65 243.50 1.63 27.98 212269.98 MitsubEst 2110.5 44.00 2152.5 1657 1.44 21.28 26984.73 Carnival 42.73 0.69 62.52 39.92 4.91 9.19 22521.07 MylanNV 19.00 0.48 37.56 16.63 - 315.44 9801.53
Cielo♦ 7.62 -0.16 13.71 6.25 18.49 7.11 4994.05 Richemont 73.10 0.80 87.44 60.44 2.51 13.49 38213.61
Orange 14.84 0.14 15.22 13.08 4.89 20.18 43570.9 MitsubishiEle 1478.5 36.00 1592 1146 2.74 12.47 29177.31 Caterpillar 130.92 2.54 144.77 111.75 2.64 12.10 73654.18 Netflix 284.75 -0.78 385.99 231.23 - 111.67 124675.54
ItauHldFin 29.55 0.02 91.08 27.19 4.64 10.19 35345.02 Roche 290.25 2.05 291.45 229.20 3.08 20.62 204214.93
PernodRic 167.70 -0.95 179.50 128.35 0.83 29.54 49129.36 MitsuiFud 2738.5 75.00 2857 2263.5 1.63 16.22 24953.05 CBS 38.25 0.31 59.56 37.10 1.89 4.68 13457.03 NextEraE 228.42 -0.48 234.27 164.78 2.07 32.88 109436.6
Petrobras 30.19 0.52 33.70 23.33 1.05 11.70 54202.35 Swiss Re 102.90 1.60 105.15 85.88 5.35 77.76 33738.86
Renault 54.50 0.73 72.00 47.59 6.75 6.19 17789.04 MitUFJFin 543.20 7.90 699.00 490.50 4.11 8.79 68235.25 Celgene 100.94 0.55 101.00 58.59 - 13.77 71538.93 Nike 94.52 -0.36 95.25 66.53 0.98 33.62 117774.53
Vale 47.83 -0.16 58.92 40.51 3.45 17.41 32653.4 Swisscom 506.60 4.00 507.20 429.20 4.47 16.80 26280.97
Safran 141.75 0.30 145.40 101.00 1.33 27.37 68182.46 Mizuho Fin 164.40 2.30 198.00 150.10 4.63 47.84 38367.05 CharlesSch 39.84 2.12 49.43 34.58 1.51 14.92 52071.64 NorfolkS 180.36 1.82 211.46 138.65 1.85 17.46 47508.05
Canada (C$) Syngent 453.40 0.90 471.20 402.50 - 39.22 43035.76
Sanofi 82.45 1.04 85.90 71.74 3.86 27.82 114018.13 Murata Mfg 5794 16.00 16430 4304 3.27 47.59 35986.69 Charter Comms 431.51 8.55 432.21 272.91 - 73.10 95569.83 Northrop 363.65 -2.77 383.89 223.63 1.36 18.76 61528.92
BCE 64.56 0.03 65.45 50.83 4.87 19.57 44162.74 UBS 11.24 0.17 14.59 9.86 6.13 10.28 43419.43
Sant Gbn 37.91 1.15 38.38 28.18 3.63-182.99 22870.93 NipponTT 5418 7.00 5447 4050 3.37 12.16 97120.89 Chevron Corp 117.32 1.14 127.34 100.22 3.95 15.14 222722.46 NXP 111.56 0.32 113.50 67.62 0.90 17.17 36670.08
BkMontrl 97.19 0.21 106.51 86.25 4.31 9.80 47017.1 Zurich Fin 390.70 4.80 390.70 282.40 4.90 14.69 58536.73
Schneider 81.36 1.04 82.20 57.58 2.99 19.18 52264.07 Nissan Mt 680.50 11.80 1034.5 635.10 8.49 12.52 26397.66 Chubb 155.57 0.13 162.44 119.54 1.90 18.97 70900.95 Occid Pet 41.22 0.71 75.79 39.97 7.60 8.13 30846.93
BkNvaS♦ 75.74 0.59 76.49 66.36 4.77 10.83 69861.96 Nomura 489.00 7.30 560.30 330.70 1.24 -32.28 15701.05 Taiwan (NT$) Cigna 160.50 8.92 226.61 141.95 0.03 14.82 60606.29 Oracle♦ 56.63 0.17 60.50 42.40 1.59 17.81 185888.95
SFR Group 34.50 - 34.56 21.87 - -23.02 17905.81
Brookfield 69.90 0.41 72.28 49.87 1.18 18.11 55416.68 Nppn Stl 1521.5 17.00 2276 1413.5 5.33 6.78 13289.04 Chunghwa Telecom 112.00 - 117.50 96.30 4.25 24.44 28308.17 Cisco♦ 46.40 0.35 58.26 40.25 3.06 17.04 196981.47 Pepsico 136.53 -0.92 140.45 105.03 2.86 15.05 190382.26
SocGen 25.75 0.54 35.64 20.81 8.85 6.70 24254.21
CanadPcR♦ 288.11 2.76 323.71 228.35 0.98 17.29 30330.68 NTTDCMo 2865.5 -4.50 2941.5 2257.5 3.89 15.29 87837.01 Formosa PetChem 97.20 -0.30 127.00 94.00 4.90 27.60 30168.24 Citigroup 71.62 1.38 73.09 48.42 2.52 9.91 161793.62 Perrigo 54.14 1.09 75.42 36.28 1.45 82.96 7366
Total 46.46 0.62 54.02 42.65 5.72 12.70 136749.49
CanImp♦ 110.61 0.72 116.82 97.55 5.24 9.23 37252.06 Panasonic 896.90 19.00 1264 787.70 3.39 7.47 20223.24 HonHaiPrc 74.70 0.20 97.20 67.00 3.32 9.17 33740.58 CME Grp 212.76 0.41 224.91 161.05 1.37 41.47 76189.44 Pfizer 36.66 0.36 46.47 33.97 3.83 16.75 202740.58
UnibailR 190.00 0.35 236.45 177.35 5.80 17.44 22215.04
CanNatRs 33.74 0.16 42.56 30.01 4.27 8.29 30356.27 Seven & I 4391 24.00 5133 3573 2.33 17.02 35773.78 MediaTek 367.00 -3.50 391.00 199.50 2.70 28.24 19008.94 Coca-Cola 53.36 0.06 55.92 44.42 2.97 31.08 228168.82 Phillips66 107.85 1.20 110.65 78.44 3.07 9.36 48375.22
Vinci 98.84 -0.32 101.70 70.18 2.80 17.57 66028.36
CanNatRy 114.88 0.10 127.96 96.46 1.75 18.68 62675.2 ShnEtsuCh 12000 300.00 12025 7982 1.69 15.67 45953.34 TaiwanSem 293.50 3.50 296.00 206.50 2.70 23.31 247965.75 Cognizant 61.30 0.92 74.85 56.73 1.31 16.91 33855.44 PhilMorris 78.03 - 92.74 64.67 5.87 15.45 121402.18
Vivendi 24.90 -0.01 26.69 20.81 2.08 63.24 33548.46
Enbridge 47.17 -0.25 51.22 39.40 6.06 19.69 72268.7 Softbank 4258 102.00 6045 3401.5 0.52 4.12 81783.27 Thailand (THB) ColgtPlm 68.47 -0.95 76.41 57.41 2.48 25.93 58743.41 PNCFin 142.59 2.07 144.32 108.45 2.68 12.85 63489.18
GtWesLif 31.14 0.43 34.42 26.83 5.23 11.92 21876.95 Germany (€)
Sony 6311 81.00 6593 4507 0.56 9.54 73782.08 PTT Explor♦ 45.00 -0.25 52.25 40.75 4.42 12.47 42318.94 Comcast♦ 45.41 0.18 47.27 32.61 1.77 17.26 205072.51 PPG Inds 117.93 0.72 121.29 94.37 1.63 23.35 27865.55
ImpOil 32.89 0.58 44.69 31.51 2.44 8.23 18824.41 Allianz 214.00 3.30 219.05 170.46 4.36 11.31 100258.68
SumitomoF 3721 70.00 4566 3380 4.66 9.75 46960.82 United Arab Emirates (Dhs) ConocPhil 56.15 0.02 74.19 50.13 2.15 9.04 62338 Praxair 164.50 -0.99 169.75 140.00 2.11 14.32 47306.22
Manulife 24.41 0.41 25.18 18.33 4.03 8.41 39172.48 BASF 65.46 0.87 74.61 55.64 5.06 22.76 66361.61
Takeda Ph 3786 66.00 4822 3401 4.8241261.44 54851.23 Emirtestele 16.48 0.04 17.80 15.20 4.87 15.78 39018.94 Corning 29.53 0.52 35.34 26.75 2.58 17.72 23056.48 Priceline 1905.64 -1.38 2067.99 1612.41 - 19.33 92937.2
Nutrien♦ 66.49 -0.71 75.57 59.97 3.37 161.72 28835.59 Bayer 66.64 1.03 79.47 52.02 4.35 149.61 68593
TokioMarine 5676 116.00 6102 4929 3.22 13.93 37038.37 United Kingdom (p) Costco 298.78 1.26 307.34 189.51 0.86 34.48 131360.7 ProctGmbl 117.31 -2.74 125.36 78.92 2.48 81.71 293583.89
RylBkC 107.41 1.08 108.25 90.10 3.91 11.67 116622.94 BMW 66.63 1.72 79.38 58.04 5.44 8.82 44272.56
Toyota 7385 116.00 7494 6045 3.02 11.04 221471.78 CrownCstl 134.28 -1.85 149.47 103.21 3.31 77.76 55827.62 Prudntl 90.58 1.24 106.40 75.61 4.21 9.20 36413.68
Suncor En 39.52 0.16 48.30 35.53 4.01 10.79 46147.72 Continental 117.58 1.80 157.40 103.62 4.18 9.47 25956.63 AscBrFd 2233 46.00 2659 2011 2.02 19.28 22588.05
Mexico (Mex$) CSX 69.28 0.72 80.73 58.47 1.33 16.63 55295.31 PublStor 242.89 -2.44 266.76 193.89 3.31 28.87 42408.05
ThmReut 87.38 -0.88 94.28 62.92 2.25 129.19 33149.98 Daimler 48.05 0.99 60.00 40.31 7.01 12.34 56739.17 AstraZen 6885 -94.00 8227.88 5312 3.25 50.94 111412.81
AmerMvl 14.67 -0.12 15.78 12.32 2.19 14.49 34222.61 CVS 64.79 1.80 82.15 51.72 3.10 18.18 84252.68 Qualcomm 77.38 1.08 90.34 49.10 3.22 26.95 94067.59
TntoDom♦ 74.57 0.81 77.96 65.56 3.97 11.29 102729.37 Deut Bank 7.05 0.20 9.97 5.78 1.62 -4.03 16080.22 Aviva 406.40 9.60 442.30 3.87 7.38 7.02 20839.75
FEMSA UBD 175.54 0.14 192.50 163.60 1.44 17.32 19722.04 Danaher♦ 139.17 0.37 147.33 94.59 0.46 41.74 99836.05 Raytheon♦ 200.61 1.23 205.28 144.27 1.77 18.40 55867.1
TrnCan♦ 67.80 0.22 70.25 47.90 4.31 14.78 47875.08 Deut Tlkm 15.72 0.23 15.88 13.86 4.61 28.11 82626.54 Barclays 164.04 6.44 180.96 131.04 3.96 9.12 35765.82
WalMrtMex 56.45 0.58 59.87 47.41 1.51 25.90 51242.23 Deere♦ 171.65 2.72 173.26 128.32 1.81 15.99 54047.98 Regen Pharm 304.14 -1.30 442.00 271.37 - 16.82 32842.07
ValeantPh 30.80 -1.06 36.02 14.01 - -8.68 8158.48 DeutsPost 30.32 0.56 31.34 23.36 3.93 16.92 41112.87 BP 490.20 -2.55 583.40 452.38 6.58 14.26 124835.67
Delphi 14.53 0.58 26.82 11.89 2.35 5.91 1265.29 S&P Global 255.90 4.53 269.57 156.68 0.84 32.39 63026.94
E.ON 8.93 0.07 10.26 8.08 4.99 34.48 26028.35 Netherlands (€) BrAmTob 2697 -20.00 3657.5 2336.5 7.38 10.04 64250.32
China (HK$) Delta 53.67 0.68 63.44 45.08 2.81 7.31 34707.46 Salesforce 152.57 3.20 167.56 113.60 - 121.84 133803.89
Fresenius Med 60.96 1.14 86.00 55.44 1.99 14.60 20477.2 Altice 5.15 -0.06 5.28 1.53 - 3.57 6971.05 BSkyB 1727.5 1.50 1740 893.50 0.76 36.60 38843.72
AgricBkCh 3.18 - 3.88 2.93 6.28 4.78 12461.52 Devon Energy 21.00 0.05 37.73 20.09 1.58 8.54 8488.2 Schlmbrg 33.31 0.74 61.19 30.65 6.03 22.27 46073.71
Fresenius SE 43.29 1.08 69.02 38.28 1.91 12.55 21546.4 ASML Hld 243.20 7.10 243.35 130.12 0.89 43.24 114260.96 BT 201.50 4.24 268.60 157.67 7.53 9.33 25545.42
Bk China 3.15 -0.01 3.84 2.91 6.75 4.58 33581.03 DiscFinServ 79.52 1.77 92.98 54.36 2.02 9.29 25307.64 Sempra Energy 144.93 -0.50 148.14 104.88 2.58 19.83 39790.61
HenkelKgaA 84.20 -0.30 93.25 75.55 2.25 15.66 24144.38 Heineken 97.26 -0.28 104.00 74.28 1.70 28.28 61834.45 Compass 1954.5 -47.50 2150 1467.5 1.93 26.48 41071.15
BkofComm 5.26 0.01 7.06 4.98 6.55 4.63 23477.9 Disney 130.38 0.68 147.15 100.35 1.36 17.25 234863.8 Shrwin-Will 558.14 7.79 564.44 355.28 0.72 44.62 51491.96
Linde 178.10 2.10 191.25 130.75 1.74 17.36 106268.59 ING 10.04 0.21 12.14 8.20 7.02 9.79 43163.28 Diageo 3164 -66.50 3633.5 2513 2.10 24.32 101774.75
BOE Tech 0.61 -0.02 1.10 0.59 - 23.32 15.47 DominRes 81.31 0.07 82.59 67.41 4.33 53.99 65323.39 SimonProp 148.90 0.25 191.49 145.28 5.46 19.83 45862.08
MuenchRkv 245.20 5.00 245.20 181.20 3.91 14.43 39058.21 Unilever 53.07 -0.33 57.77 45.43 3.07 14.49 90484.22 GlaxoSmh 1655.6 -28.60 1770.6 1408.8 4.83 18.63 104033.84
Ch Coms Cons 6.12 -0.04 8.87 5.80 4.44 4.56 3454.34 DowDupont 30.52 -0.65 48.38 30.06 12.46 8.93 68559.76 SouthCpr 34.60 -0.31 42.58 29.01 4.64 18.33 26747.84
SAP 115.48 0.72 125.00 83.95 1.35 42.71 156586.83 Norway (Kr) Glencore 233.65 2.80 343.60 188.50 6.72 42.48 43064.34
Ch Evrbrght 3.64 -0.02 4.10 3.09 5.07 5.38 5883.44 DukeEner 95.08 -0.05 97.37 79.71 3.92 21.09 69275.39 Starbucks 86.13 -0.49 99.72 56.31 1.68 30.42 103097.61
Siemens 99.88 0.70 108.84 84.42 3.94 17.96 93706.41 DNB 158.85 1.50 169.65 135.50 5.58 9.21 27491.86 HSBC♦ 605.90 -1.40 687.70 6.30 6.60 11.18 155224.92
Ch Rail Cons 8.63 -0.14 11.94 8.19 2.54 5.75 2284.32 Eaton 82.27 1.41 89.07 64.46 3.34 15.94 34553.4 StateSt 60.03 1.54 83.22 48.62 3.14 10.85 22365.95
Volkswgn 164.10 1.75 167.40 129.60 3.03 6.49 53448.39 Equinor 166.70 -0.30 225.50 144.50 5.24 7.36 60951.57 Imperial Brands 1849.6 8.60 2789 1736.2 10.15 11.38 22539.79
Ch Rail Gp 4.76 -0.04 8.21 4.65 2.87 5.74 2553.17 eBay 38.86 0.50 42.00 26.01 0.35 14.57 32594.35 Stryker♦ 215.84 3.18 223.45 144.75 0.94 23.02 80746.52
Hong Kong (HK$) Telenor♦ 179.50 -0.85 190.80 148.10 4.97 24.59 28355.97 LlydsBkg 60.82 3.03 66.79 48.16 5.28 11.44 56007.2
ChConstBk 6.26 0.04 7.21 5.55 11.12 5.30 191865.04 Ecolab 195.43 1.42 209.87 135.77 0.92 38.02 56235.34 Sychrony Fin 33.75 0.63 36.87 21.78 2.50 7.00 22391.1
AIA 73.70 -0.10 88.50 58.20 1.15 19.52 113580.74 Natl Grid 893.50 9.70 894.90 744.50 5.21 20.26 38320.7
China Vanke 28.65 -0.30 35.60 21.95 3.69 7.59 5763.34 Qatar (QR) Emerson 68.36 1.15 74.31 55.39 2.87 19.34 42045.26 T-MobileUS 79.32 0.69 85.22 59.96 - 20.74 67771.26
BOC Hold 26.20 0.05 35.90 25.05 5.65 8.67 35314.04 Prudential 1476 8.50 1795 1299.5 3.34 14.50 48794.85
ChinaCitic 4.37 0.02 5.41 3.92 6.04 4.23 8291 QatarNtBk 19.40 0.09 20.05 16.47 3.21 13.08 49213.63 EOG Res 68.42 0.23 123.56 66.02 1.24 11.08 39728.97 Target 111.83 0.68 112.94 60.15 2.39 17.77 57137.54
Ch OSLnd&Inv 25.75 -0.25 31.30 22.35 3.52 6.00 35966.14 RBS 226.10 10.90 274.20 176.55 2.43 9.90 34569.51
ChinaLife 18.76 0.08 23.35 15.44 0.98 14.35 17796.39 Russia (RUB) EquityResTP 87.48 -0.10 88.49 62.42 2.54 43.57 32442.38 TE Connect 91.39 0.97 97.99 69.84 1.96 9.74 30701.12
ChngKng 52.30 -0.40 72.50 49.00 3.66 6.28 24625.49 ReckittB 5940 -153.00 6862 5559 2.87 18.51 53447.7
ChinaMBank 38.50 -0.05 42.75 27.35 2.81 9.96 22532.83 Gzprm neft 226.00 - 256.40 145.02 3.64 2.94 83310.64 Exelon 47.19 0.09 51.18 42.80 3.01 20.09 45849.07 Tesla Mtrs 258.18 1.22 379.49 176.99 - -69.50 46246.43
Citic Ltd 10.12 -0.02 13.28 8.65 4.08 5.49 37530.51 RELX 1772.5 -44.00 2027 1492 2.38 22.99 43974.59
ChinaMob 65.80 -0.60 87.70 62.05 4.91 10.87 171757.97 Lukoil 5601.5 151.50 5996 4555 4.11 5.79 62364.88 ExpScripts 92.33 -3.47 101.73 66.93 - 11.10 52061.19 TexasInstr 131.68 1.93 132.20 87.70 2.23 23.98 122939.07
Citic Secs 15.30 -0.16 21.20 11.62 2.63 15.88 4443.9 RioTinto 4019 -96.00 5039 3489 6.00 6.49 68874.85
ChinaPcIns 29.65 0.10 34.75 24.20 3.88 9.01 10490.38 MmcNrlskNckl♦ 16022 82.00 16750 10558 13.75 10.01 39480.05 ExxonMb 69.88 0.70 83.75 64.65 4.78 16.77 295648.55 TheTrvelers 143.51 0.40 155.09 111.08 2.19 14.28 37367.95
CK Hutchison 72.25 0.70 86.45 64.30 4.42 7.03 35518.83 RollsRoyce 746.20 -6.20 1003.5 713.80 1.57 -5.94 17732.69
ChMinsheng 5.52 0.04 6.36 4.98 7.20 4.08 5855.07 Novatek♦ 1337 11.60 1382.2 1014.9 1.99 7.30 63213.04 Facebook 189.60 6.32 208.66 123.02 - 32.01 456125.11 ThrmoFshr 285.83 1.58 305.45 208.34 0.25 32.50 114467.98
CNOOC♦ 11.82 -0.14 15.18 10.74 5.95 7.99 67277.91 RylDShlA 2264 -25.50 2637.5 2209.5 6.56 11.62 132986.41
ChMrchSecs 17.10 -0.14 19.99 11.13 2.09 20.92 13815.18 Rosneft 411.65 -1.75 487.85 390.75 6.43 7.41 67934.32 Fedex 148.81 2.03 234.49 137.78 1.83 80.13 38825.18 TimeWrnr 98.77 0.82 103.89 85.88 1.54 15.09 77269.69
HangSeng♦ 161.80 -1.10 212.60 157.00 4.73 12.50 39435.52 Shire# 4690 111.00 4780 2944 0.58 11.63 56567.13
Chna Utd Coms 6.19 0.04 7.57 4.92 0.89 41.53 18535.15 Sberbank 229.40 1.00 250.65 177.02 7.13 5.64 77110.74 FordMtr 9.08 0.26 10.56 7.41 6.64 16.74 35564.85 TJX Cos 58.43 0.31 59.15 41.49 1.46 22.67 70637.94
HK Exc&Clr 236.40 -0.80 286.20 198.00 2.86 30.98 38009.19 StandCh♦ 662.60 7.80 742.60 514.20 2.49 53.37 27911.64
ChShenEgy 16.02 0.10 20.40 14.66 6.50 6.16 6940.93 Surgutneftegas 35.96 -0.29 38.86 24.06 1.85 3.26 20004.77 Franklin 27.49 0.52 35.82 25.57 3.69 10.22 13845.79 UnionPac 163.00 3.45 180.54 128.08 2.07 19.30 114834.83
MTR 43.70 0.20 55.75 37.50 2.77 18.37 34304.6 Tesco♦ 244.20 5.10 254.10 187.05 2.36 18.24 25547.72
ChShpbldng 5.54 -0.07 7.10 3.89 0.21 148.67 14370.21 GenDyn♦ 179.11 -0.01 196.04 143.87 2.19 15.82 51736 UPS B 117.69 1.82 123.63 89.89 3.07 22.90 82463.28
SandsCh 36.55 0.05 44.70 29.85 5.46 19.11 37681.58 Saudi Arabia (SR) Vodafone 161.82 0.82 171.78 122.22 8.09 -11.56 55151.82
ChStConEng 5.49 -0.07 6.72 4.91 3.17 6.03 31907.37 GenElectric♦ 8.88 0.16 12.81 6.66 1.70 -3.58 77495.53 USBancorp 53.88 0.62 57.81 43.14 2.76 12.60 84905.54
SHK Props 111.90 -0.50 142.00 99.50 4.23 7.16 41338.28 AlRajhiBnk 57.10 -0.90 76.90 52.00 6.24 13.28 38051.45 WPP♦ 951.00 -5.60 1075 791.00 6.31 17.07 15384.95
ChUncHK 8.38 -0.26 10.70 6.96 1.87 20.30 32688.59 GenMills♦ 53.43 -0.58 56.40 36.42 3.85 16.43 32292.76 UtdHlthcre 237.10 16.51 287.94 208.07 1.60 17.74 224695.74
Tencent 328.80 0.60 400.40 251.40 0.31 30.88 400444.87 Natnlcombnk 41.35 -0.65 64.40 41.35 5.10 11.25 33066.78 United States of America ($)
CNNC Intl 5.36 -0.02 6.73 5.19 2.16 17.27 11785.99 GenMotors 36.24 0.74 41.90 30.56 4.21 5.75 51740.91 UtdTech 136.67 0.75 144.40 100.48 2.13 22.39 117923.15
SaudiBasic 87.30 -0.90 129.20 87.30 5.06 17.60 69812.07 21stC Fox A 31.72 0.33 41.70 27.73 0.73 12.29 11243.39
CSR 5.33 -0.09 8.62 5.16 3.24 11.34 2970.1 India (Rs) GileadSci 65.55 1.04 76.44 60.32 3.68 14.10 83009.82 ValeroEngy 89.99 1.46 108.40 68.81 3.79 14.82 37292.21
SaudiTelec 99.30 -0.30 117.40 80.00 4.05 17.41 52938.82 3M 163.53 3.02 219.75 150.58 3.44 19.65 94072.51
Daqin 7.67 -0.01 9.03 7.38 6.48 7.72 16108.47 Bhartiartl 383.65 -9.90 397.00 254.15 1.25 -67.37 27522.3 GoldmSchs 204.87 -0.95 234.06 151.70 1.59 8.55 73665.5 Verizon♦ 60.02 0.42 61.58 52.28 4.03 15.61 248228.6
Gree Elec Apl 0.01 - 0.04 0.01 - -0.10 17.32 HDFC Bk 1223.05 18.65 1282.7 942.50 0.64 27.98 93531.63 Singapore (S$) AbbottLb♦ 82.02 2.20 88.76 65.44 1.47 50.43 144961.95 Halliburton 18.87 0.11 40.45 16.97 3.83 12.45 16528.84 VertexPharm 176.83 3.24 195.81 151.80 - 20.62 45451.58
GuosenSec 12.49 -0.15 15.13 6.71 0.99 21.56 14468.24 Hind Unilevr 2064.4 50.15 2100.65 1522 1.12 64.54 62471.26 DBS 24.94 -0.06 28.64 22.65 6.12 10.05 46558.17 Abbvie♦ 74.60 0.84 94.98 62.66 5.46 26.44 110294.89 HCA Hold 121.88 2.45 147.42 110.31 1.24 11.70 41558.98 VF Cp 91.13 0.19 96.20 67.18 2.19 28.10 36285.83
HaitongSecs 8.45 -0.09 11.50 6.31 2.04 11.00 3672.92 HsngDevFin 2013.3 -1.45 2357.85 1644.5 1.03 20.31 48594.89 JardnMt US$♦ 52.98 0.33 72.05 10.99 3.22 11.83 39076.44 Accenture 186.88 1.38 202.80 132.63 1.58 25.60 125298.14 Hew-Pack 16.80 0.26 25.72 15.93 3.85 5.96 24896.15 Viacom 22.91 0.18 33.92 22.14 3.51 5.73 8109.33
Hngzh HikVDT 30.31 -0.66 37.24 22.32 2.05 23.83 34571.28 ICICI Bk 431.85 3.00 458.65 310.20 0.36 40.10 38993.81 JardnStr US$♦ 29.68 -0.06 40.70 29.03 1.14 10.37 32832.45 Adobe 280.52 2.74 313.11 204.95 - 47.57 135793.73 HiltonWwde 91.94 0.41 101.14 65.64 0.66 33.79 26373.41 Visa Inc 179.09 1.73 187.05 121.60 0.54 34.30 309283.32
Hunng Pwr 3.74 0.03 5.26 3.50 3.16 27.18 2241.1 Infosys 768.30 -17.80 847.00 599.85 2.38 20.31 45734.58 OCBC 10.78 - 12.19 10.36 4.06 9.83 33395.92 AEP 92.10 0.07 94.89 70.59 2.87 22.93 45478.53 HomeDep 235.98 1.80 236.86 158.09 2.11 22.52 258428.75 Walgreen 54.37 0.70 86.31 49.03 3.28 10.54 49103.91
IM Baotou Stl 1.47 -0.02 2.11 1.44 0.35 21.96 6578.09 ITC 247.60 3.50 310.00 234.05 2.42 23.59 42525.02 SingTel 3.17 0.01 3.56 2.83 5.61 18.15 37772.45 Aetna 212.70 0.70 213.36 166.89 0.92 19.50 69637.98 Honywell 164.48 1.50 178.47 123.48 1.96 17.37 118344.68 WalMartSto 119.06 -0.11 120.71 85.78 1.84 25.81 338640.46
In&CmBkCh 5.44 0.01 6.19 4.81 5.29 5.65 60192.54 L&T 1432.25 8.30 1607 1182.5 1.13 22.31 28092.43 UOB 25.95 -0.17 27.97 23.39 3.92 10.01 31755.89 Aflac 52.91 0.40 57.18 41.45 2.01 12.82 39173.68 HumanaInc♦ 276.51 12.51 355.88 225.65 0.56 15.03 37353.54 WellsFargo 51.04 1.77 55.04 43.02 3.46 10.50 224887.7
IndstrlBk 19.07 0.06 20.66 14.60 3.74 6.23 51326.23 OilNatGas 138.65 3.40 178.90 115.55 5.70 5.88 24382.34 South Africa (R) AirProd♦ 215.86 2.00 232.47 148.44 2.10 27.81 47564.76 IBM 142.85 0.81 152.95 105.94 4.45 14.71 126547.27 Williams Cos 23.39 0.27 29.55 20.36 6.18-232.99 28349.2
Kweichow 1211 31.00 1215.68 509.02 1.24 37.33 214903.06 RelianceIn 1364.15 6.15 1417.5 1016.4 - 19.31 120880.15 Firstrand 66.82 0.13 71.79 54.86 4.49 11.74 25249.32 Alexion 104.27 2.93 141.86 92.56 - 17.51 23380.14 IllinoisTool 156.70 2.76 161.71 117.75 2.56 20.95 50689.03 Yum!Brnds 111.11 -1.71 119.72 84.53 1.41 26.41 33809.19
Midea 1.10 - 1.69 0.98 4.58 -3.83 30.15 SBI NewA 258.45 3.00 373.80 244.35 - 23.37 32242.75 MTN Grp 93.15 -0.74 114.43 75.05 5.67 18.32 11823.49 Allergan 170.38 1.44 192.69 114.27 1.72 -6.66 55902.18 Illumina 310.28 -0.03 380.76 263.30 - 49.06 45611.16 Venezuela (VEF)
New Ch Life Ins 31.85 0.10 46.95 27.30 1.97 6.84 4198.87 SunPhrmInds 396.80 2.15 616.80 344.55 0.52 30.58 13308.49 Naspers N 2269 0.80 3750.01 2223.01 0.29 16.33 67965.72 Allstate 108.58 0.35 109.55 77.00 1.78 14.42 35743.64 Intcntl Exch 93.59 0.09 95.56 69.69 1.10 26.41 52449.22 Bco de Vnzla 899.97 49.97 1080 5.20 434.35 - 172.73
PetroChina♦■ 4.11 -0.02 6.19 3.69 3.63 12.15 11054.98 Tata Cons 2037.3 16.30 2296.2 1784.35 1.59 22.55 106863.3 Alphabet 1242.37 24.60 1296.98 977.66 - 24.99 372129.18 Intel 52.85 1.21 59.59 42.36 2.34 12.27 234125.5
South Korea (KRW) Bco Provncl 84500 -500.00 116000 485.00 - 20.51 479.51
PingAnIns 94.40 -0.20 98.00 65.95 2.12 10.00 89628.01 Altria 43.20 0.48 66.04 39.30 7.44 12.84 80701.74 Intuit♦ 273.35 4.29 295.78 182.61 0.72 44.47 71091.13
Indonesia (Rp) HyundMobis 245500 5000 263500 165000 2.10 11.31 19742.47 Mrcntl Srvcs 79000 - 160000 1075 0.00 8.84 253.11
PngAnBnk 17.18 -0.04 17.60 9.15 1.69 11.53 41671.67 Amazon 1758.51 22.08 2035.8 1307 - 72.65 869857.55 John&John 133.26 2.54 148.99 121.00 2.75 22.01 351695.2
Bk Cent Asia 22300 200.00 24700 16800 - - 38879.26 KoreaElePwr 25800 250.00 36000 24500 - -12.15 13975.17
Pwr Cons Corp 4.68 -0.04 6.25 4.56 - 9.47 7367.9 AmerAir 28.01 0.39 40.58 24.23 1.43 8.23 12469.81 JohnsonCn 42.59 0.35 44.65 28.30 2.45 19.02 33889.14
Israel (ILS) SK Hynix 81200 700.00 84600 56700 1.90 5.59 49878.74 Closing prices and highs & lows are in traded currency (with variations for that
SaicMtr 23.93 -0.46 30.30 22.69 7.91 8.78 38887.59 AmerExpr♦ 117.74 1.35 129.34 89.05 1.33 14.51 97685.78 JPMrgnCh♦ 121.15 4.70 121.30 91.11 2.65 12.31 387375.31
TevaPha 23.80 - 88.44 21.75 - -1.81 7414.54 SmsungEl 50100 100.00 50300 36850 2.91 10.49 252361.39 country indicated by stock), market capitalisation is in USD. Highs & lows are
ShenwanHong 0.04 0.00 0.16 0.04 - -2.11 45.81 AmerIntGrp 54.77 0.56 58.66 36.16 2.35-1818.61 47644.88 Kimb-Clark 133.47 -1.63 143.50 100.32 3.05 25.66 45931.87
Italy (€) Spain (€) AmerTower♦ 223.02 -2.62 242.00 141.51 1.55 67.11 98727.63 based on intraday trading over a rolling 52 week period.
ShgPdgBk 13.09 0.15 13.22 9.60 3.56 6.42 51968.92 KinderM 20.27 0.13 21.50 14.62 4.21 20.39 45876.01 ♦ ex-dividend
Enel 6.84 0.06 6.91 4.31 4.12 13.47 76732.61 BBVA 4.75 0.11 5.68 4.19 5.67 6.20 34951.19 Amgen 204.06 1.17 211.90 166.30 2.73 16.08 122375.03
Sinopec Corp 4.66 -0.04 7.00 4.48 10.47 9.32 15157.02 Kraft Heinz 27.46 0.14 58.08 24.86 7.49 -3.01 33500.96 ■ ex-capital redistribution
ENI 13.84 0.09 16.06 12.92 6.21 13.92 55507.57 BcoSantdr 3.90 0.14 4.68 3.39 6.12 9.22 71452.41 Anadarko 72.77 0.56 76.23 40.40 1.50 -63.37 36563.54
Sinopec Oil 2.29 -0.03 3.35 1.82 - 169.92 3895.8 Kroger 24.20 0.10 31.98 20.70 2.41 11.37 19399.24 # price at time of suspension
Generali 18.11 0.14 18.15 13.63 5.15 12.40 31369.47 CaixaBnk 2.58 0.06 3.90 1.98 6.83 11.17 17013.42 Anthem 251.05 16.23 317.99 227.16 1.24 16.13 64221.63
Denmark (kr) Iberdrola 9.16 -0.10 9.58 5.94 6.08 17.06 64294.85 L Brands 18.02 0.54 38.00 15.82 10.42 8.34 4980.58
IntSPaolo 2.21 0.03 2.36 1.80 9.23 9.14 42711.31 Aon Cp 192.53 1.25 198.61 135.30 0.86 34.31 45406.64 LasVegasSd 57.58 0.57 69.60 47.39 5.30 22.94 44324.42
DanskeBk 97.24 1.26 148.70 85.90 9.06 6.30 12386.8 Inditex 28.53 0.12 29.00 21.85 2.23 23.53 98143.59
Luxottica 49.00 -0.34 59.54 48.62 2.11 22.75 26878.18 Apple 235.70 -0.18 238.13 142.00 1.26 19.931065148.13 LibertyGbl 25.37 0.63 28.62 19.88 - -12.82 5209.22
MollerMrsk 8070 196.00 9914 6716 1.90 118.76 11995.17 Repsol 14.72 0.19 16.37 12.37 6.45 11.48 25967.12
Unicred 11.21 0.35 13.07 9.07 2.49 6.68 27643.58 ArcherDan 40.48 0.28 49.77 36.45 3.40 17.38 22546.31 Lilly (E) 109.91 2.01 132.13 104.17 2.21 26.00 106110.74
NovoB 355.15 0.70 367.00 271.15 2.38 21.87 97732.05 Telefonica 7.04 0.06 8.06 5.86 5.88 - 40356.52

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
RBS 226.10 215.20 10.90 5.07 36.80 19.4 -98.94 BOE Tech 0.61 0.63 -0.02 -3.17 -0.17 -21.8 -35.79 Oct 15 date Coupon S* M* F* price yield yield yield US Oct 15 date Coupon S* M* F* price yield yield yield US
Delphi 14.53 13.95 0.58 4.12 2.36 19.4 -16.11 ShenwanHong 0.04 0.04 0.00 2.50 -0.01 -14.6 -25.45 High Yield US$ US$
LlydsBkg 60.82 57.79 3.03 5.24 9.84 19.3 -98.88 Hngzh HikVDT 30.31 30.97 -0.66 -2.13 -1.99 -6.2 -12.14 Qwest Capital Funding, Inc. 08/21 7.63 B+ WR BB 105.00 4.68 -0.02 0.14 2.98 Morgan Stanley 01/28 4.00 BBB+ A3 A 102.92 3.59 -0.04 0.49 -
BT 201.50 197.26 4.24 2.15 25.36 14.4 -98.85 RELX 1772.50 1816.50 -44.00 -2.42 -104.50 -5.6 -99.04 High Yield Euro Morgan Stanley 01/28 4.00 BBB+ A3 A 102.92 3.59 -0.04 0.49 -
Barclays 164.04 157.60 6.44 4.09 20.10 14.0 11.86 Diageo 3164.00 3230.50 -66.50 -2.06 -156.00 -4.7 -99.02 Aldesa Financial Services S.A. 04/21 7.25 - - B 71.10 28.23 0.00 0.64 25.98 NationsBank Corp. 03/28 6.80 BBB+ Baa1 A 123.14 3.59 -0.07 0.02 -
CharlesSch 39.84 37.72 2.12 5.61 4.61 13.1 -8.72 MediaTek 367.00 370.50 -3.50 -0.94 -17.00 -4.4 -2.13 NationsBank Corp. 03/28 6.80 BBB+ Baa1 A 123.14 3.59 -0.07 0.02 -
Sant Gbn 37.91 36.76 1.15 3.13 4.33 12.9 5.36 Midea 1.10 1.10 0.00 0.00 -0.05 -4.3 -8.33 Emerging US$ United Utilities PLC 08/28 6.88 BBB Baa1 A- 123.79 3.69 -0.04 0.04 -
CaixaBnk 2.58 2.52 0.06 2.30 0.29 12.6 14.99 Compass 1954.50 2002.00 -47.50 -2.37 -87.50 -4.3 -98.99 Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34 United Utilities PLC 08/28 6.88 BBB Baa1 A- 123.79 3.69 -0.04 0.04 -
Bhartiartl 383.65 393.55 -9.90 -2.52 42.10 12.3 11.84 ReckittB 5940.00 6093.00 -153.00 -2.51 -259.00 -4.2 -99.05 Brazil 01/22 12.50 BB- Ba2 BB- 115.21 5.15 -0.03 -0.36 3.45
Brazil 01/23 2.63 BB- Ba2 BB- 95.75 3.80 -0.01 -0.40 1.29 Euro
Deut Bank 7.05 6.85 0.20 2.88 0.75 11.8 11.82 BrAmTob 2697.00 2717.00 -20.00 -0.74 -110.00 -3.9 -99.09 Citigroup Inc. 02/30 4.25 BBB Baa2 A- 118.38 0.74 0.09 0.02 -0.96
SocGen 25.75 25.22 0.54 2.12 2.64 11.4 -0.92 GlaxoSmh 1655.60 1684.20 -28.60 -1.70 -57.40 -3.4 -99.00 Poland 03/23 3.00 A- A2 A- 100.62 2.83 0.01 -0.21 0.58
Turkey 03/23 3.25 - Ba3 BB 88.50 6.59 -0.30 0.91 4.34 HBOS plc 03/30 4.50 BBB- Baa1 A- 114.70 1.34 -0.01 -0.09 -0.36
SAP 115.48 114.76 0.72 0.63 11.82 11.4 11.40 ColgtPlm 68.47 69.41 -0.95 -1.36 -2.22 -3.1 -3.23 HBOS plc 03/30 4.50 BBB- Baa1 A- 114.70 1.34 -0.01 -0.09 -0.36
Ch Evrbrght 3.64 3.66 -0.02 -0.55 0.37 11.3 1.96 ProctGmbl 117.31 120.05 -2.74 -2.28 -3.62 -3.0 -3.91 Colombia 03/23 2.63 BBB- Baa2 BBB 97.75 3.24 0.10 -0.38 0.99
Mexico 10/23 4.00 BBB+ A3 BBB 105.75 2.47 -0.05 -0.13 0.90 Goldman Sachs Group, Inc. (The) 02/31 3.00 BBB+ A3 A 122.32 0.92 -0.02 0.10 -0.78
BNP Parib 47.04 45.39 1.65 3.64 4.72 11.1 3.72 Infosys 768.30 786.10 -17.80 -2.26 -21.25 -2.7 -7.36
Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07 Yen
Caterpillar 130.92 128.38 2.54 1.98 12.95 11.0 -2.17 Kimb-Clark 133.47 135.10 -1.63 -1.21 -3.64 -2.7 0.63
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 101.22 0.90 0.01 0.03 -
BcoSantdr 3.90 3.75 0.14 3.76 0.38 10.7 4.49 RylDShlA 2264.00 2289.50 -25.50 -1.11 -58.00 -2.5 -98.99
ING 10.04 9.83 0.21 2.09 0.97 10.7 2.03 PernodRic 167.70 168.65 -0.95 -0.56 -4.20 -2.4 1.98 Russia 06/28 12.75 BBB- Baa3 BBB 169.24 3.46 0.00 -0.01 - £ Sterling
ShgPdgBk 13.09 12.94 0.15 1.16 1.25 10.6 9.08 BP 490.20 492.75 -2.55 -0.52 -11.40 -2.3 -99.03 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 128.68 3.20 0.00 -0.01 0.40
Daimler 48.05 47.07 0.99 2.09 4.50 10.3 10.32 FEMSA UBD 175.54 175.40 0.14 0.08 -3.88 -2.2 -3.45 Brazil 04/21 2.88 BB- Ba2 BB- 103.74 0.30 -0.03 0.16 -1.40 innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 136.43 2.34 -0.08 0.22 0.64
Unicred 11.21 10.87 0.35 3.18 1.05 10.3 -2.11 CrownCstl 134.28 136.13 -1.85 -1.36 -2.80 -2.0 -1.67 Mexico 02/22 1.88 BBB+ A3 BBB 103.90 0.22 0.00 -0.02 -1.48 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
Oct 15 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Oct 15 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 13.69 -0.88 14.57 36.20 11.03 Oct 15 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 13.53 -0.97 14.50 33.17 4.07 - - - - - - - - -
US Discount 3.00 19-12-2018 2.75 2.75 1.75 ABF Pan-Asia unhedged 202.13 0.07 0.50 5.74 1.19 9.35 VXN 17.30 -1.31 18.61 38.70 14.55 - - - - - - - - -
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 376.64 0.90 -0.10 11.11 0.73 9.85 VDAX 14.84 -1.17 16.02 - 10.48 - - - - - - - - -
UK Repo 0.75 02-08-2018 0.50 0.50 0.25 Corporates($) 308.62 -0.61 -0.44 12.82 -0.44 12.82 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 101.56 0.75 1.35 15.38 20.97 -5.06 105.49 101.56 33.70
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 239.79 0.10 -0.43 7.24 0.30 6.47 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 101.05 0.67 6.35 59.52 6.35 -20.24 101.77 101.05 32.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 258.75 0.41 -0.35 10.04 1.34 11.02 Tr 4pc '22 108.34 0.49 8.89 122.73 -7.55 -47.87 110.70 108.33 38.39
Gilts( £) 362.23 1.59 0.07 11.37 2.23 11.81 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 123.94 0.50 11.11 138.10 -9.09 -60.63 126.04 122.72 35.49
INTEREST RATES: MARKET Global Inflation-Lkd 278.29 -0.94 -1.52 7.70 0.48 6.57 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 105.36 0.54 12.50 125.00 -11.48 -64.00 107.75 97.84 23.73
Over Change One Three Six One Markit iBoxx £ Non-Gilts 368.17 0.79 -0.11 9.81 0.76 8.96 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 141.20 0.81 6.58 52.83 -5.81 -54.49 146.36 129.87 35.86
Oct 15 (Libor: Oct 14) night Day Week Month month month month year Overall ($) 263.30 -0.65 -0.40 10.04 -0.40 10.04 Australia 12/21 2.00 102.79 0.71 0.02 0.12 -0.05 -1.42 Tr 4.25pc '36 149.34 0.98 5.38 36.11 -3.92 -48.96 155.71 134.51 30.11
US$ Libor 1.79888 0.006 -0.022 -0.023 1.89075 2.00088 1.97800 1.97313 Overall( £) 360.54 1.35 0.01 10.88 1.77 10.91 11/28 2.75 114.85 1.04 0.03 0.18 0.03 -1.73 Tr 4.5pc '42 168.44 1.13 4.63 28.41 -4.24 -43.78 176.63 147.10 26.95
Euro Libor -0.57329 0.000 0.003 0.003 -0.51529 -0.43686 -0.41114 -0.34129 Overall(€) 250.09 0.30 -0.39 8.61 0.97 9.06 Austria 10/23 1.75 109.53 -0.59 0.01 0.08 0.08 -0.62 Tr 3.75pc '52 171.83 1.12 4.67 27.27 -5.88 -43.43 182.25 142.12 23.87
£ Libor 0.66513 -0.007 -0.005 -0.002 0.71438 0.78250 0.85838 0.95713 Treasuries ($) 245.77 -0.72 -0.44 8.50 -0.44 8.50 02/47 1.50 128.76 0.39 -0.03 0.12 0.14 -1.08 Tr 4pc '60 195.85 1.07 4.90 30.49 -6.14 -44.85 209.19 156.74 23.89
Swiss Fr Libor 0.007 -0.79520 -0.78000 -0.71440 -0.59380 FTSE Belgium 06/21 1.50 103.51 -0.63 0.02 0.05 0.04 -0.29 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor 0.001 -0.10500 -0.11167 -0.05850 0.02150 Sterling Corporate (£) - - - - - - 06/47 1.60 126.03 0.58 -0.03 0.08 0.12 -1.20
Euro Euribor
Sterling CDs
0.005
0.000
-0.46800
0.75000
-0.41600
0.80000
-0.35300
0.87500
-0.30100 Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73 Canada - - - - - - - GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 437.04 0.87 - - -4.77 19.03 03/22 0.50 97.39 1.62 - - - -
US$ CDs 0.000 2.45000 2.56000 2.65000 Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64 Denmark 11/20 0.25 101.16 -0.81 -0.01 0.01 0.00 -0.26 Price Indices Day's Total Return Return
Euro CDs - - - - 11/23 1.50 109.28 -0.73 0.00 0.07 0.07 -0.68 Fixed Coupon Oct 15 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series 1 Up to 5 Years 90.66 -0.10 2454.62 -0.02 1.66 0.52
Short 7 Days One Three Six One Index change change change high low Finland - - - - - - -
04/21 3.50 106.23 -0.63 0.01 0.06 0.07 -0.21 2 5 - 10 Years 184.94 -0.38 3689.43 -0.04 7.05 0.53
Oct 15 term notice month month month year Markit iTraxx 3 10 - 15 Years 222.22 -0.62 4664.55 -0.28 11.24 0.81
Euro -0.76 -0.46 -0.72 -0.42 -0.69 -0.39 -0.65 -0.35 -0.61 -0.31 -0.57 -0.27 Crossover 5Y 238.57 -6.36 -13.88 -46.32 315.74 234.62 France 11/20 0.25 100.94 -0.59 0.02 0.05 0.06 -0.15
4 5 - 15 Years 193.28 -0.48 3925.57 -0.14 8.21 0.68
Sterling 0.45 0.55 0.70 0.80 0.75 0.85 0.80 0.95 0.88 1.03 Europe 5Y 47.04 -0.96 -1.58 -10.36 73.15 45.37 05/25 0.50 105.60 -0.48 0.00 0.08 0.08 -0.85
5 Over 15 Years 374.53 -1.07 6006.40 -0.47 20.64 1.10
Swiss Franc - - - - - - - - - - - - Japan 5Y 55.70 -0.16 -5.27 -7.05 72.09 53.56 05/48 2.00 136.65 0.60 -0.03 0.10 0.12 -1.12
7 All stocks 187.81 -0.65 3918.73 -0.26 11.64 1.00
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 56.86 -1.60 -4.99 -12.82 93.48 53.22 Germany - - - - - - -
US Dollar 1.81 2.11 1.79 2.09 1.79 2.09 1.86 2.16 1.85 2.15 1.85 2.15 10/20 0.25 100.91 -0.65 0.02 0.07 0.08 -0.08 Day's Month Year's Total Return Return
Markit CDX 02/25 0.50 106.52 -0.70 0.01 0.10 0.09 -0.78
Japanese Yen -0.35 -0.05 -0.35 -0.05 -0.25 0.05 -0.25 0.05 -0.20 0.10 -0.10 0.20 Index Linked Oct 15 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 197.66 -3.17 -20.39 20.15 219.14 155.49 08/48 1.25 134.68 0.04 -0.03 0.13 0.14 -1.08
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 309.49 -0.38 -1.01 0.06 2511.67 -0.74 1.32
Nth Amer High Yld 5Y 327.11 -5.67 -13.02 -27.86 374.87 311.41 Greece 02/25 3.00 113.91 1.37 -0.05 -0.10 -0.05 -3.29
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 2 Over 5 years 792.18 -1.18 -3.04 14.13 5962.68 -3.04 14.65
Nth Amer Inv Grade 5Y 51.34 -0.87 -2.74 -7.95 70.26 49.61 02/25 3.00 113.91 1.37 -0.05 -0.10 -0.05 -3.29
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 3 5-15 years 510.90 -1.13 -1.93 7.26 4035.08 -1.93 8.25
Ireland 03/22 0.80 103.23 -0.53 0.02 0.00 0.00 -0.49 4 Over 15 years 1030.19 -1.19 -3.37 16.44 7560.68 -3.37 16.78
05/30 2.40 124.03 0.11 -0.02 0.06 0.08 -1.15 5 All stocks 708.95 -1.07 -2.76 12.81 5426.82 -2.73 13.43
Italy - - - - - - -
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 04/22 1.20 103.15 -0.08 -0.02 0.03 0.07 -2.69 Yield Indices Oct 15 Oct 14 Yr ago Oct 15 Oct 14 Yr ago
10/23 0.65 102.18 0.10 -0.02 0.02 0.07 -2.78 5 Yrs 0.39 0.34 1.11 20 Yrs 1.14 1.09 2.01
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
03/48 3.45 132.41 1.96 -0.01 0.08 0.13 -1.98 10 Yrs 0.69 0.63 1.60 45 Yrs 1.06 1.01 1.94
Crude Oil† Oct 53.46 0.00 Corn♦ Dec 393.75 -3.50 Oct 14 Oct 14 Prev return stock Market stocks
Japan 03/22 0.10 100.95 -0.29 0.00 0.05 0.06 -0.20 15 Yrs 1.00 0.94 1.90
Brent Crude Oil‡ 59.28 0.06 Wheat♦ Dec 505.00 -6.00 Can 4.25%' 21 107.91 0.504 0.518 -0.24 5.18 82800.26 8
12/23 0.60 103.81 -0.31 0.00 0.07 0.04 -0.27
RBOB Gasoline† Oct 1.62 0.01 Soybeans♦ Nov 935.25 -4.50 Fr 2.25%' 20 - - - - - - -
12/28 1.90 119.87 -0.24 0.00 0.05 0.02 -0.41 inflation 0% inflation 5%
Heating Oil† - - Soybeans Meal♦ Dec 309.00 -1.50 Swe 0.25%' 22 114.37 -2.032 -2.017 -0.01 31.92 237673.07 7
09/47 0.80 111.40 0.37 0.00 0.03 0.04 -0.52 Real yield Oct 15 Dur yrs Previous Yr ago Oct 15 Dur yrs Previous Yr ago
Natural Gas† Oct 2.29 0.00 Cocoa (ICE Liffe)X Dec 1933.00 30.00 UK 2.5%' 22 115.18 -2.775 -2.736 -1.10 15.74 737479.43 28
Netherlands 07/21 3.25 106.94 -0.69 0.02 0.06 0.07 -0.25 Up to 5 yrs -2.18 2.81 -2.31 -1.79 -2.62 2.83 -2.75 -2.23
Ethanol♦ - - Cocoa (ICE US)♥ Dec 2477.00 25.00 UK 2.5%' 24 369.55 -2.532 -2.496 -1.61 6.82 737479.43 28
07/25 0.25 104.72 -0.56 0.00 0.10 0.09 -0.80 Over 5 yrs -1.99 25.04 -2.03 -1.45 -2.00 25.08 -2.05 -1.47
Uranium† Oct 25.15 0.00 Coffee(Robusta)X Nov 1237.00 -13.00 UK 2%' 35 299.89 -2.380 -2.333 -2.80 9.08 737479.43 28
Carbon Emissions‡ - - Coffee (Arabica)♥ Dec 94.30 -0.90 New Zealand - - - - - - - 5-15 yrs -2.43 10.07 -2.54 -1.60 -2.48 10.07 -2.59 -1.69
US 0.625%' 21 100.41 0.391 0.392 0.12 35.84 1416577.02 40
White SugarX 347.30 2.90 05/21 6.00 107.64 1.11 0.01 0.07 -0.05 -1.16 Over 15 yrs -1.94 29.32 -1.98 -1.44 -1.95 29.35 -1.99 -1.45
Diesel† - - US 3.625%' 28 127.93 0.296 0.298 -0.06 16.78 1416577.02 40
Sugar 11♥ 12.38 -0.11 Norway - - - - - - - All stocks -1.99 22.02 -2.04 -1.46 -2.01 22.10 -2.06 -1.48
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 1717.50 -1.50 Cotton♥ Dec 62.83 0.64 05/21 3.75 104.08 1.16 0.01 0.01 -0.03 -0.14 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 1140.00 -10.00 Orange Juice♥ Nov 99.65 0.05 Portugal 04/21 3.85 106.69 -0.59 0.00 0.03 0.00 -0.68 ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 5769.00 -51.00 Palm Oil♣ - - 10/25 2.88 117.94 -0.11 -0.03 0.02 0.01 -1.64 Gilt Closing Prices information contained herein is proprietary to
Lead 2130.50 -7.50 Live Cattle♣ Oct 110.65 0.00 BONDS: TEN YEAR GOVT SPREADS Spain 01/21 0.05 100.63 -0.43 0.01 0.05 0.05 -0.50 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 16865.00 -430.00 Feeder Cattle♣ Oct 145.53 1.18 10/28 5.15 145.03 0.14 -0.02 0.06 0.06 -1.54 accurate, complete or timely; and does not constitute investment advice.
Tin 16645.00 95.00 Lean Hogs♣ Dec 68.98 0.00 Spread Spread Spread Spread Sweden 12/20 5.00 106.27 -0.54 0.01 0.08 0.05 -0.14 Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 2432.00 15.00 Bid vs vs Bid vs vs 11/23 1.50 108.48 -0.55 0.00 0.13 0.05 -0.72
% 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 1490.60 11.45 Oct 14 Month Year 04/21 2.00 104.44 -0.87 0.00 0.03 0.01 -0.26 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 1.04 - -0.66 Italy - - -
Silver (US cents) 1760.50 0.50 S&P GSCI Spt 405.28 0.36 -15.69 United Kingdom 01/21 1.50 101.09 0.63 -0.05 0.18 0.17 -0.24 Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria -0.59 - - Japan -0.24 - -1.94
Platinum 898.00 10.00 DJ UBS Spot 78.57 -0.17 -8.89 Belgium 0.58 - - Netherlands -0.56 - - 09/25 2.00 109.33 0.40 -0.07 0.21 0.18 -0.94 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 1697.00 -3.00 TR/CC CRB TR 184.77 0.37 -9.45 Canada - - - Norway - - - 12/28 6.00 148.80 0.53 -0.07 0.19 0.15 -1.04 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 -0.73 - - Portugal -0.11 - - 07/47 1.50 109.16 1.12 -0.07 0.16 0.14 -0.92
Iron Ore 92.05 0.55 UBS Bberg CMCI TR 14.25 0.86 -8.35 Finland - - - Spain 0.14 - -1.56 United States 11/20 1.75 100.06 1.70 0.00 0.04 -0.11 -1.17 Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 68.50 -0.25 LEBA EUA Carbon 24.63 -0.08 25.09 France 0.60 - - Switzerland - - - 12/23 2.25 102.78 1.57 -0.02 0.16 0.00 -1.44
Baltic Dry Index 1898.00 -18.00 LEBA CER Carbon 0.21 0.00 -12.50 Germany - - - United Kingdom 0.53 - -1.17 11/28 5.25 129.80 1.70 -0.03 0.17 0.04 -1.44
LEBA UK Power 3608.00 1482.46 22.72 Greece 1.37 - - United States 1.70 - 0.00 11/47 2.75 111.84 2.18 -0.03 0.14 0.06 -1.14
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.
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
18 ★ FINANCIAL TIMES Wednesday 16 October 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

Data Provided by

Aberdeen Standard Capital (JER) Dodge & Cox Worldwide Funds (IRL) MMIP Investment Management Limited (GSY) Omnia Fund Ltd Rubrics Global UCITS Funds Plc (IRL)
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 6 Duke Street,St.James,London SW1Y 6BN Regulated Other International Funds www.rubricsam.com
FCA Recognised www.dodgeandcox.worldwide.com 020 3713 7664 Multi-Manager Investment Programmes PCC Limited Estimated NAV $ 721.14 - -129.60 0.00 Regulated
Aberdeen Standard Capital Offshore Strategy Fund Limited FCA Recognised UK Equity Fd Cl A Series 01 £ 2789.10 2817.70 169.11 0.00 Rubrics Emerging Markets Fixed Income UCITS Fund $ 137.58 - -0.03 0.00
Bridge Fund £ 1.9713 - -0.0031 1.98 Dodge & Cox Worldwide Funds plc - Global Bond Fund Diversified Absolute Rtn Fd USD Cl AF2 $ 1602.04 - 7.65 0.00 Rubrics Global Credit UCITS Fund $ 16.97 - 0.01 0.00
Rubrics Global Fixed Income UCITS Fund $ 173.35 - 0.18 0.00
Global Equity Fund
Global Fixed Interest Fund
£ 2.6472
£ 0.9745
-
-
-0.0107
0.0006
1.14
4.16
EUR Accumulating Class
EUR Accumulating Class (H)
€ 14.60 -
€ 10.58 -
0.02 0.00
0.01 0.00
Diversified Absolute Return Stlg Cell AF2 £ 1541.34 -
Global Equity Fund A Lead Series £ 1613.70 1618.94 16.95 0.00
5.12 0.00
Q Rubrics India Fixed Income UCITS Fund $ 11.15 - 0.00 0.00 www.morningstar.co.uk
Income Fund £ 0.5934 - -0.0011 2.86 Rubrics India Fixed Income UCITS Fund $ 97.27 - 0.00 0.00
EUR Distributing Class € 11.92 - 0.03 4.23 Data as shown is for information purposes only. No
Sterling Fixed Interest Fund £ 0.8853 - 0.0009 3.12 EUR Distributing Class (H) € 8.61 - 0.00 4.48 offer is made by Morningstar or this publication.
UK Equity Fund £ 2.0619 - -0.0029 3.59 GBP Distributing Class £ 12.78 - 0.11 3.81
GBP Distributing Class (H) £ 9.04 - 0.00 4.46 Global Investment House Polar Capital Funds Plc (IRL)
USD Accumulating Class $ 11.61 - 0.00 0.00 Global GCC Islamic Fund $ 110.74 - -0.51 0.00 Regulated
Marwyn Asset Management Limited (CYM)

Slater
Global GCC Large Cap Fund $ 171.67 - -1.36 0.00 Automation & Artificial Intelligence CL I USD Acc $ 11.28 11.28 0.16 0.00
Dodge & Cox Worldwide Funds plc-Global Stock Fund
USD Accumulating Share Class $ 21.21 - -0.02 0.00
Global Saudi Equity Fund SR 271.49 - -1.00 0.00
Regulated
Marwyn Value Investors £ 362.90 - -37.00 0.00
Asian Financials I USD $ 374.98 374.98 -0.59 0.00 Guide to Data
Investments
GBP Accumulating Share Class £ 27.80 - 0.21 0.00 Biotechnology I USD $ 21.68 21.68 0.23 0.00
GBP Distributing Share class £ 19.46 - 0.15 1.10 Emerging Market Stars I USD Acc $ 9.72 - 0.07 0.00
EUR Accumulating Share Class € 28.90 - 0.01 0.00 European Ex UK Inc EUR Acc € 12.29 12.29 -0.04 0.00 The fund prices quoted on these pages are supplied by
GBP Distributing Class (H) £ 10.75 - -0.01 1.17 Financial Opps I USD $ 12.98 - -0.03 2.42 the operator of the relevant fund. Details of funds
Optima Fund Management GEM Income I USD $ 12.30 - 0.09 0.00 published on these pages, including prices, are for the
Dodge & Cox Worldwide Funds plc-U.S. Stock Fund HPB Assurance Ltd
Milltrust International Managed Investments ICAV (IRL) Other International Funds Global Convertible I USD $ 13.09 13.09 -0.01 0.00 purpose of information only and should only be used
USD Accumulating Share Class $ 26.05 - 0.01 0.00 Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490
mimi@milltrust.com, +44(0)20 8123 8369 www.milltrust.com JENOP Global Healthcare Fund Ltd $ 15.97 - -0.53 0.00 Global Insurance I GBP £ 7.53 - -0.15 0.27 as a guide. The Financial Times Limited makes no
GBP Accumulating Share Class £ 32.29 - 0.29 0.00 International Insurances Global Technology I USD $ 49.79 - 0.85 0.00 representation as to their accuracy or completeness
Regulated OPTIKA Fund Limited - Cl A $ 183.01 - 0.00 0.00
GBP Distributing Share Class £ 19.93 - 0.18 0.87 Holiday Property Bond Ser 1 £ 0.54 - 0.01 0.00 Healthcare Blue Chip Fund I USD Acc $ 12.83 12.83 0.12 0.00 and they should not be relied upon when making an
MAI - Buy & Lease (Australia) A$ 102.52 - 2.25 0.00 Optima Fd NAV $ 98.15 - 0.00 0.00
EUR Accumulating Share Class € 30.65 - 0.05 0.00 Holiday Property Bond Ser 2 £ 0.66 - 0.01 0.00 Healthcare Opps I USD $ 46.42 - 0.41 0.00 Slater Investments Ltd (UK) investment decision.
MAI - Buy & Lease (New Zealand)NZ$ 97.29 - 0.06 0.00 Optima Discretionary Macro Fund Limited $ 78.68 - 0.00 0.00
GBP Distributing Class (H) £ 11.26 - 0.00 1.04 Income Opportunities B2 I GBP Acc £ 2.31 2.31 0.01 0.00 www.slaterinvestments.com; Tel: 0207 220 9460
British Innovation Fund £ 100.02 - 3.18 0.00 Platinum Fd Ltd $ 98.28 - 0.00 0.00
Algebris Investments (IRL) Japan I JPY ¥ 2200.70 - 33.12 0.00 FCA Recognised The sale of interests in the funds listed on these pages
Milltrust Global Emerging Markets Fund - Class A $ 87.10 - 0.93 0.00 Platinum Japan Fd Ltd $ 65.01 - 0.00 0.00
Slater Growth 546.41 546.41 0.50 0.00 may, in certain jurisdictions, be restricted by law and
Regulated Optima Partners Global Fd $ 16.65 - 0.00 0.00 Japan Value I JPY ¥ 116.85 116.85 1.82 0.00
Slater Income A Inc 144.24 144.24 0.23 0.00 the funds will not necessarily be available to persons
Algebris Allocation Fund - Class I EUR € 99.27 - 0.23 0.00 Optima Partners Focus Fund A $ 17.44 - 0.00 0.00 North American I USD $ 24.96 24.96 0.30 0.00
in all jurisdictions in which the publication circulates.
Algebris Core Italy Fund - Class R EUR € 98.44 - 1.25 0.00 Optima STAR Fund (hedged) $ 97.37 - 0.01 0.00 UK Absolute Equity I GBP £ 20.14 20.14 0.00 0.00 Slater Recovery 254.16 254.16 0.06 0.00
Persons in any doubt should take appropriate
Algebris Financial Credit Fund - Class I EUR € 164.06 - 1.93 0.00 Optima STAR Long Fund $ 143.04 - -0.20 0.00 UK Val Opp I GBP Acc £ 11.64 11.64 0.05 0.00 Slater Artorius 221.49 221.49 0.72 0.27
professional advice. Data collated by Morningstar. For
Algebris Financial Credit Fund - Class R EUR € 143.80 - 1.69 0.00 The Optima Lloyd George Asia Fund $ 96.50 - 0.32 - other queries contact reader.enquiries@ft.com +44
Algebris Financial Credit Fund - Class Rd EUR € 101.77 - 1.19 5.72 Mirabaud Asset Management (LUX) (0)207 873 4211.
Algebris Financial Income Fund - Class I EUR € 140.02 - 2.70 0.00 www.mirabaud.com, marketing@mirabaud-am.com
Algebris Financial Income Fund - Class R EUR € 131.08 - 2.53 0.00 Conviction based investment vehicles details available here www.mirabaud-am.com The fund prices published in this edition along with
Algebris Financial Income Fund - Class Rd EUR € 90.19 - 1.74 4.82 Regulated additional information are also available on the
Polar Capital LLP (CYM) Financial Times website, www.ft.com/funds. The
Algebris Financial Equity Fund - Class B EUR € 108.23 - 2.58 0.00 Mir. - Glb Strat. Bd I USD $ 114.47 - -0.05 0.00
Oryx International Growth Fund Ltd Regulated funds published on these pages are grouped together
Algebris Macro Credit Fund - Class I EUR € 112.24 - 0.20 0.00 Mir. - DiscEur D Cap GBP £ 137.41 - 0.78 0.00
Other International Funds European Forager A EUR € 191.84 - 0.59 0.00 by fund management company.
Algebris Macro Credit Fund - Class R EUR € 110.82 - 0.20 0.00 Mirabaud - UK Equity High Alpha £ 122.93 - 0.31 0.00
Algebris Macro Credit Fund - Class Rd EUR € 110.82 - 0.20 0.00 NAV (Fully Diluted) £ 9.10 - -0.52 0.00
Hermes Investment Funds Plc (IRL) Prices are in pence unless otherwise indicated. The
Algebris Quant Arbitrage Fund - Class EB EUR € 100.19 - 0.33 0.00
Dragon Capital Group change, if shown, is the change on the previously
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 702 0888
1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam quoted figure (not all funds update prices daily). Those
FCA Recognised designated $ with no prefix refer to US dollars. Yield
Fund information, dealing and administration: funds@dragoncapital.com Hermes Abs Return Credit Fund Class F Acc £ 1.37 1.37 0.01 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY) percentage figures (in Tuesday to Saturday papers)
Other International Funds Hermes Abs Return Credit Fund Class F Acc USD € 1.92 1.92 -0.01 0.00 Morgens Waterfall Vintiadis.co Inc
Regulated allow for buying expenses. Prices of certain older
Vietnam Equity (UCITS) Fund A USD $ 23.26 - 0.00 0.00 Hermes Asia Ex-Japan Equity Fund Class C Acc GBP £ 2.57 2.57 -0.01 0.00 Other International Funds insurance linked plans might be subject to capital
The Antares European Fund Limited Monument Growth 01/10/19 £ 506.34 511.44 -10.27 2.49
Hermes Asia Ex-Japan Equity Fund Class C Acc USD € 4.54 4.54 0.00 0.00 Phaeton Intl (BVI) Ltd (Est) $ 520.14 - 7.93 0.00 Stonehage Fleming Investment Management Ltd (IRL) gains tax on sales.
Other International Hermes Europe Ex-UK Equity Fund Class F Acc £ 2.15 2.15 -0.01 0.00 www.stonehagefleming.com/gbi
AEF Ltd Usd (Est) $ 610.97 - -15.00 - Hermes Europe Ex-UK Equity Fund Class F Acc EUR € 4.12 4.12 0.02 0.00 enquiries@stonehagefleming.com Guide to pricing of Authorised Investment Funds:
AEF Ltd Eur (Est) € 578.23 - -14.46 0.00 Hermes European Alpha Equity Fund Class F Acc £ 1.75 1.75 -0.02 0.00 Regulated (compiled with the assistance of the IMA. The
Hermes European Alpha Equity Fund Class F Dis £ 1.61 1.61 -0.01 1.43 SF Global Best Ideas Eq B USD ACC $ 183.27 - -0.26 0.00 Investment Management Association, 65 Kingsway,
Ennismore Smaller Cos Plc (IRL) Hermes European Alpha Equity Fund Class F Acc EUR € 3.46 3.46 0.00 0.00 Prusik Investment Management LLP (IRL) SF Global Best Ideas Eq D GBP INC £ 221.23 - 1.47 0.24 London WC2B 6TD.
5 Kensington Church St, London W8 4LD 020 7368 4220 Hermes GEMs SMID Equity Fund Class F GBP Acc £ 1.15 - 0.00 - Enquiries - 0207 493 1331 Tel: +44 (0)20 7831 0898.)
FCA Recognised Hermes Global Emerging Markets Fund Class F Acc £ 2.08 2.08 -0.01 0.00 Regulated
Ennismore European Smlr Cos NAV £ 141.83 - 0.68 0.00 OEIC: Open-Ended Investment Company. Similar to a
Hermes Global Emerging Markets Fund Class F Acc USD € 4.32 4.32 0.01 0.00 Prusik Asian Equity Income B Dist $ 189.45 - -0.51 4.79
Arisaig Partners unit trust but using a company rather than a trust
Ennismore European Smlr Cos NAV € 161.86 - -0.38 0.00 Hermes Global Equity Fund Class F Acc £ 2.45 2.45 -0.02 0.00 Orbis Investments (U.K.) Limited (GBR) Prusik Asia Emerging Opportunities Fund A Acc $ 152.83 - -0.28 0.00 structure.
Other International Funds
Arisaig Africa Consumer Fund Limited $ 10.35 - -0.09 0.00
Hermes Global Equity Fund Class R Acc USD € 5.28 5.28 0.01 0.00
Hermes Global ESG Equity Fund Class F Acc £ 1.83 1.83 -0.01 0.00
28 Dorset Square, London, NW1 6QG Prusik Asia Fund U Dist. £ 184.91 - -1.25 0.00
Asset Management
Managemen
Asset Management
www.orbis.com 0800 358 2030 Different share classes are issued to reflect a different
Arisaig Asia Consumer Fund Class A (Ex-Alcohol) shares $ 95.23 - 0.10 - Hermes Global High Yield Credit Fund Class F Acc £ 1.56 1.56 0.01 0.00
Asset Management Asset Management
Regulated currency, charging structure or type of holder.
Arisaig Asia Consumer Fund Limited $ 94.65 - 0.12 0.00 Hermes Global High Yield Credit Fund Class F Acc EUR € 3.31 3.31 0.00 0.00 Orbis OEIC Global Cautious Std GBP Inc £ 10.22 - 0.02 -
Arisaig Global Emerging Markets Consumer Fund $ 11.98 - -0.01 0.00 Hermes Global Small Cap Fund Class F Acc £ 1.64 1.64 0.00 0.00 Selling price: Also called bid price. The price at which
Ennismore European Smlr Cos Hedge Fd Orbis OEIC Global Balanced Standard £ 14.13 - 0.07 5.61
Arisaig Global Emerging Markets Consumer UCITS € 14.06 - -0.01 0.00 Hermes Global Small Cap Fund Class F Acc USD € 2.17 2.17 -0.01 0.00 units in a unit trust are sold by investors.
Orbis OEIC Global Equity Standard £ 16.20 - 0.12 3.98 Purisima Investment Fds (CI) Ltd (JER)
Arisaig Global Emerging Markets Consumer UCITS STG £ 15.64 - 0.10 0.00 Other International Funds Hermes Impact Opportunities Equity Fund F $ 2.06 - 0.01 0.00 Natixis International Funds (LUX) I SICAV (LUX) Orbis OEIC UK Equity Standard £ 8.06 - -0.02 4.25
Arisaig Latin America Consumer Fund $ 27.06 - -0.08 0.00 NAV € 593.08 - 3.95 0.00 Hermes Impact Opportunities Equity Fund F £ 1.10 - 0.00 0.00 Regulated Buying price: Also called offer price. The price at
FCA Recognised
Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.20 1.20 0.00 0.00 PCG B 223.74 - 3.62 0.00 which units in a unit trust are bought by investors.
ASG Managed Futures Fund I/A (USD) $ 106.56 106.56 0.62 0.00
Hermes SDG Engagement Equity Fund F $ 2.22 - 0.02 0.00 PCG C 219.11 - 3.54 0.00 Includes manager’s initial charge.
Harris Global Equity Fund R/A (USD) $ 309.84 309.84 -0.48 0.00
Hermes SDG Engagement Equity Fund F £ 1.17 - 0.00 0.00 Loomis Sayles Global Growth Equity Fund I/A (USD) $ 148.72 148.72 -0.51 0.00
Single price: Based on a mid-market valuation of the
Hermes Unconstrained Credit Fund Class F USD Acc $ 2.22 - 0.00 0.00 Loomis Sayles U.S. Growth Equity Fund I/A (USD) $ 155.73 155.73 -0.27 0.00 Toscafund Asset Management LLP (UK)
underlying investments. The buying and selling price
Hermes US SMID Equity Fund Class F Acc £ 2.71 2.71 -0.02 0.00 www.toscafund.com
Artemis Fund Managers Ltd (1200)F (UK) Equinox Fund Mgmt (Guernsey) Limited (GSY) for shares of an OEIC and units of a single priced unit
Hermes US SMID Equity Fund Class F Acc USD € 4.72 4.72 0.00 0.00 Authorised Funds
57 St. James's Street, London SW1A 1LD 0800 092 2051 Regulated trust are the same.
Authorised Inv Funds Equinox Russian Opportunities Fund Limited $ 175.48 - -0.93 0.00 Aptus Global Financials B Acc £ 3.46 - -0.02 4.48
Artemis Monthly Dist R Acc 92.22 - -0.13 4.14 Aptus Global Financials B Inc £ 2.50 - -0.02 5.63 Treatment of manager’s periodic capital charge:
The letter C denotes that the trust deducts all or part
Artemis US Smllr Cos I Hdg Acc 103.55 - -0.36 - Natixis Investment Funds (UK)
of the manager’s/operator’s periodic charge from
Authorised Funds capital, contact the manager/operator for full details
Intrinsic Value Investors (IVI) LLP (IRL) DNCA European Select Equity Fund £ 0.94 - 0.00 1.92 of the effect of this course of action.
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Harris Global Concentrated Equity Fund £ 1.79 - 0.01 1.38
Euronova Asset Management UK LLP (CYM)
Regulated
FCA Recognised H2O MultiReturns Fund N/A (GBP) £ 1.90 - 0.01 0.97 Toscafund Asset Management LLP Exit Charges: The letter E denotes that an exit charge
IVI European Fund EUR € 23.52 - -0.06 0.00 Loomis Sayles U.S. Equity Leaders N/A (GBP) £ 2.91 - 0.00 0.05 www.toscafund.com may be made when you sell units, contact the
Smaller Cos Cls One Shares € 45.18 - -0.35 0.00
IVI European Fund GBP £ 27.53 - 0.13 0.16
Pictet Asset Management (Europe) SA (LUX)
manager/operator for full details.
Smaller Cos Cls Two Shares € 30.26 - -0.24 0.00 Tosca A USD $ 285.98 - -15.19 -
15, Avenue J.F. Kennedy L-1855 Luxembourg
Smaller Cos Cls Three Shares € 15.26 - -0.10 0.00 Tosca Mid Cap GBP £ 306.66 - -6.38 -
Tel: 0041 58 323 3000 Ram Active Investments SA Time: Some funds give information about the timing of
Smaller Cos Cls Four Shares € 19.60 - -0.12 0.00 Tosca Opportunity B USD $ 455.40 - -8.48 -
FCA Recognised www.ram-ai.com price quotes. The time shown alongside the fund
Pegasus Fund Ltd A-1 GBP £ 73.36 - -3.38 0.00
Pictet-Absl Rtn Fix Inc-HI EUR € 110.75 - -0.05 0.00 Other International Funds manager’s/operator’s name is the valuation point for
Pictet-Asian Equities Ex Japan-I USD F $ 299.84 - 0.80 0.00 their unit trusts/OEICs, unless another time is
RAM Systematic Emerg Markets Core Eq $ 97.44 - 0.22 -
Kames Capital ICVC (UK) Pictet-Asian Local Currency Debt-I USD F $ 177.42 - -0.21 0.00 indicated by the symbol alongside the individual unit
RAM Systematic Emerg Markets Eq $ 171.63 - 0.53 - trust/OEIC name.
Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA Pictet-Biotech-I USD F $ 761.92 - 9.37 0.00 RAM Systematic European Eq € 445.62 - -0.90 -
FIL Investment Services (UK) Limited (1200)F (UK) 0800 358 3009 www.kamescapital.com Pictet-CHF Bonds I CHF SFr 518.16 - 0.29 0.00 RAM Systematic Funds Global Sustainable Income Eq $ 124.61 - -0.10 0.00 The symbols are as follows: ✠ 0001 to 1100 hours; ♦
130, Tonbridge Rd, Tonbridge TN11 9DZ Authorised Funds Pictet-China Index I USD $ 144.47 - 0.67 0.00 RAM Systematic Long/Short Emerg Markets Eq $ 114.00 - -0.22 -
Troy Asset Mgt (1200) (UK)
1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to
Ashmore Investment Management Limited (LUX) Callfree: Private Clients 0800 414161 Kames Global Equity GBP B Acc £ 2.28 - -0.02 0.23 Pictet-Clean Energy-I USD F $ 101.42 - 0.37 0.00 RAM Systematic Long/Short European Eq € 143.84 - 0.41 - 65 Gresham Street, London, EC2V 7NQ
midnight. Daily dealing prices are set on the basis of
2 rue Albert Borschette L-1246 Luxembourg Kames Investment Grd Glbl Bd A Inc GBP H 592.51 - 1.09 2.23 Pictet-Digital-I USD F $ 429.94 - 1.53 0.00 RAM Systematic North American Eq $ 300.11 - -0.42 - Order Desk and Enquiries: 0345 608 0950
Broker Dealings: 0800 414 181 the valuation point, a short period of time may elapse
FCA Recognised Pictet-Em Lcl Ccy Dbt-I USD F $ 183.73 - -0.16 0.00 RAM Tactical Convertibles Europe € 143.66 - -0.03 - Authorised Inv Funds
OEIC Funds before prices become available. Historic pricing: The
Ashmore SICAV Emerging Market Debt Fund $ 97.48 - 0.04 5.68 Pictet-Emerging Europe-I EUR F € 412.88 - 2.76 0.00 RAM Tactical Global Bond Total Return € 148.14 - 0.01 - Authorised Corporate Director - Link Fund Solutions letter H denotes that the managers/operators will
Fidelity American Fund W-ACC-GBP £ 46.15 - -0.14 0.61 Pictet-Emerging Markets-I USD F $ 642.24 - 0.36 0.00
Ashmore SICAV Emerging Market Frontier Equity Fund $ 166.68 - -0.23 0.67 RAM Tactical II Asia Bond Total Return $ 149.89 - 0.00 - normally deal on the price set at the most recent
Fidelity Cash Fund Y-ACC-GBP £ 1.01 - 0.00 0.55 Pictet-Emerging Markets Index-I USD F $ 286.46 - 5.93 0.00 Trojan Investment Funds
Ashmore SICAV Emerging Market Total Return Fund $ 84.48 - 0.01 5.23 New Capital UCITS Fund PLC (IRL) valuation. The prices shown are the latest available
FID Emerg Europe, Middle East and Africa Fund W-ACC-GBP £ 2.21 - -0.02 3.06 Pictet-Emerging Corporate Bonds I USD $ 134.96 - -0.04 0.00 Trojan Ethical O Acc 106.43 - -0.20 0.00 before publication and may not be the current dealing
Ashmore SICAV Global Small Cap Equity Fund $ 137.89 - 0.23 0.00 Leconfield House, Curzon Street, London, W1J 5JB
Fidelity Global Enhanced Income Fund W-ACC-GBP £ 1.93 - -0.01 3.44 Pictet-Emerging Markets High Dividend I USD $ 128.40 - 0.04 0.00 Trojan Ethical O Inc 106.32 - -0.21 0.00 levels because of an intervening portfolio revaluation
EM Active Equity Fund Acc USD $ 128.82 - 2.81 0.00 www.newcapitalfunds.com
Fidelity Global Focus Fund W-ACC-GBP £ 25.56 - -0.04 0.36 Pictet-Emerging Markets Sust Eq I USD $ 106.18 - 0.05 0.00 or a switch to a forward pricing basis. The
EM Equity Fund Acc USD $ 101.56 - -0.02 0.00 FCA Recognised
Fidelity Global High Yield Fund Y-ACC-GBP £ 14.89 - 0.01 3.20 Pictet-EUR Bonds-I F € 641.82 - 0.49 0.00 managers/operators must deal at a forward price on
EM Mkts Corp.Debt USD F $ 91.10 - 0.03 6.71 Wealthy Nations Bond Fund - USD Inst Inc. $ 121.70 - 0.04 4.12
EM Mkts Loc.Ccy Bd USD F $ 79.76 - -0.03 5.65
Fidelity Japan Fund W-ACC-GBP £ 4.08 - 0.00 0.61 Pictet-EUR Corporate Bonds-I F € 220.41 - 0.07 0.00 Ruffer LLP (1000)F (UK) request, and may move to forward pricing at any time.
Fidelity Japan Smaller Companies Fund W-ACC-GBP £ 3.40 - 0.02 0.43 Euro Value Credit Fund - EUR Inst Acc € 103.43 - 0.04 0.00 Forward pricing: The letter F denotes that that
EM Short Duration Fund Acc USD $ 137.82 - 0.14 0.00 Pictet-EUR Government Bonds I EUR € 179.09 - 0.28 0.00 65 Gresham Street, London, EC2V 7NQ
Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.08 - 0.00 0.57 Global Value Credit Fund - USD Ord Acc. $ 197.78 - 0.01 0.00 managers/operators deal at the price to be set at the
Pictet-EUR High Yield-I F € 286.24 - -0.19 0.00 Order Desk and Enquiries: 0345 601 9610
Short Dated Corporate Bond Fund Y ACC GBP £ 10.70 - 0.00 3.74 Asia Pacific Equity Income Fund - USD Ord Inc. $ 98.96 - 0.75 4.81
Pictet-EUR Short Mid-Term Bonds-I F € 137.70 - -0.01 0.00 WA Fixed Income Fund Plc (IRL) next valuation.
Authorised Inv Funds
Fidelity Special Situations Fund W-ACC-GBP £ 36.86 - 0.28 2.27 China Equity Fund - USD Ord Acc. $ 152.58 - 0.89 0.00 Regulated
Pictet-EUR Short Term HY I EUR € 128.78 - -0.02 0.00
Authorised Corporate Director - Link Fund Solutions
Fidelity UK Growth Fund W-ACC-GBP £ 3.34 - -0.05 - Dynamic European Equity Fund - EUR Ord Inc. € 184.71 - -0.97 2.72 European Multi-Sector € 124.11 - -0.23 3.30 Investors can be given no definite price in advance of
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 100.60 - 0.00 0.00
Fidelity UK Select Fund W-ACC-GBP £ 3.21 - 0.01 1.96 Global Equity Conviction Fund - USD Ord Acc. $ 131.83 - -0.12 0.00 LF Ruffer European C Acc 603.38 - -0.21 0.67 the purchase or sale being carried out. The prices
Pictet-Euroland Index IS EUR € 163.08 - -0.13 0.00
Swiss Select Equity Fund - CHF Ord Acc.SFr 144.50 - -0.26 0.00 LF Ruffer European C Inc 110.22 - -0.04 0.72 appearing in the newspaper are the most recent
Atlantas Sicav (LUX) Institutional OEIC Funds Kames Capital VCIC (IRL) Pictet-Europe Index-I EUR F € 203.25 - -0.97 0.00
US Growth Fund - USD Ord Acc. $ 292.94 - 0.00 0.00 LF Ruffer European O Acc 590.51 - -0.25 0.35 provided by the managers/operators. Scheme
Regulated Europe (ex-UK) Fund ACC-GBP £ 5.97 - -0.01 0.92 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Pictet-European Equity Selection-I EUR F € 763.42 - 4.24 0.00
US Small Cap Growth Fund - USD Inst Acc $ 132.75 - -0.06 0.00 LF Ruffer Equity & General C Acc 441.56 - -3.52 0.52 particulars, prospectus, key features and reports: The
American Dynamic $ 4980.25 4980.25 33.37 0.00 FCA Recognised Pictet-European Sust Eq-I EUR F € 292.49 - 0.94 0.00 most recent particulars and documents may be
Strategic Portfolio UCITS Fund - USD Inst Acc. $ 125.56 - 0.08 0.00 LF Ruffer Equity & General C Inc 404.63 - -3.23 0.52
American One $ 4876.97 4876.97 31.56 0.00 Pictet-Global Bds Fundamental I USD $ 130.87 - 0.18 0.00 obtained free of charge from fund
Absolute Return Bond B GBP Acc 1117.95 - 0.05 1.74 All Weather Fund - EUR Inst Acc € 96.67 - -0.18 0.00 LF Ruffer Equity & General O Acc 432.18 - -3.47 0.20 Yapi Kredi Asset Management (TUR)
Bond Global € 1543.38 1543.38 -7.69 0.00 Eq Market Neutral B Acc 938.75 - -0.06 0.00 Pictet-Global Bonds-I EUR € 191.66 - -0.84 0.00 managers/operators. * Indicates funds which do not
Dynamic UK Equity Fund - GBP Inst Acc. £ 115.86 - -0.01 0.00 LF Ruffer Equity & General O Inc 400.13 - -3.21 0.22 www.yapikrediportfoy.com.tr Tel: + 90 (212) 385 48 48
Eurocroissance € 1095.88 1095.88 16.52 0.00 High Yield Global Bond A GBP Inc 517.01 - 0.37 3.65 Pictet-Global Defensive Equities I USD $ 194.89 - 0.51 0.00 price on Fridays.
Global Alpha Fund - USD Ord Inc $ 107.49 - 0.11 1.10 LF Ruffer Gold C Acc 209.20 - 8.25 0.00 Other International Funds
Far East $ 902.35 - 13.74 0.00 High Yield Global Bond B GBP Inc 1097.65 - 0.81 4.31 Pictet-Global Emerging Debt-I USD F $ 439.48 - -0.14 0.00
Findlay Park Funds Plc (IRL) LF Ruffer Gold C Inc 126.61 - 4.99 0.00 Eurobond Fund TRY 0.138265 - -0.000521 - Charges for this advertising service are based on the
Kames Emerging Market Bond Fund - B Acc USD $ 11.26 - -0.03 0.00 Pictet-Global Env.Opport-I EUR € 233.09 - 1.55 0.00
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 LF Ruffer Gold O Acc 204.68 - 8.06 0.00 Koc Affiliate and Equity Fund TRY 0.890242 - 0.751456 - number of lines published and the classification of the
Kames Global Equity Income B GBP Acc 1872.01 - -12.69 0.00 Pictet-Global Megatrend Selection-I USD F $ 311.89 - 1.09 -
FCA Recognised LF Ruffer Japanese C Inc 125.60 - -0.27 0.53 DPM Bonds and Bills Fund (FX) $ 1.038022 - 0.899236 0.00 fund. Please contact data@ft.com or
Kames Global Equity Income B GBP Inc 1455.44 - -8.32 3.19 Pictet-Global Sust.Credit HI EUR € 158.37 - -0.17 0.00
LF Ruffer Japanese C Acc 269.64 - -0.58 0.52 call +44 (0)20 7873 3132 for further information.
American Fund USD Class $ 127.36 - -0.30 0.16 Kames Global Diversified Growth Fund - B Acc EUR € 11.16 - 0.02 0.00 Pictet-Greater China-I USD F $ 660.59 - 4.07 0.00
LF Ruffer Pacific & Emerging Markets C Acc 366.82 - 3.43 1.25
American Fund GBP Hedged £ 65.65 - -0.14 0.17 Kames Global Equity Market Neutral Fund - B Acc GBP £ 9.90 - 0.02 0.00 Pictet-Health-I USD $ 313.07 - 2.16 0.00
Barclays Investment Funds (CI) Ltd (JER)
American Fund GBP Unhedged £ 101.21 - 0.58 0.16 Pictet-SmartCity-I EUR € 202.87 - 1.18 0.00
LF Ruffer Pacific & Emerging Markets C Inc 100.83 - 0.95 1.34
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Global Sustainable Equity B Acc GBP £ 16.33 - 0.00 0.00 LF Ruffer Pacific & Emerging Markets O Acc 358.68 - 3.32 0.99
Global Sustainable Equity C Acc GBP £ 16.50 - 0.00 0.00 Pictet-India Index I USD $ 121.61 - -0.03 0.00
FCA Recognised LF Ruffer Total Return C Acc 447.45 - -0.99 1.54
Kames Absolute Return Bond Global Fund - B Acc GBP £ 10.29 - 0.00 0.00 Pictet-Indian Equities-I USD F $ 592.32 - 0.12 0.00
Bond Funds LF Ruffer Total Return C Inc 292.30 - -0.64 1.56
Short Dated High Yld Bd B Acc GBP £ 10.51 - 0.00 0.00 Pictet-Japan Index-I JPY F ¥ 18217.00 - 278.37 0.00
LF Ruffer Total Return O Acc 437.90 - -0.99 1.54
Sterling Bond F £ 0.49 - 0.00 1.77 Short Dated High Yld Bd C Acc GBP (Hdg) £ 10.58 - 0.00 0.00 Pictet-Japanese Equities Opp-I JPY F ¥ 11473.90 - 105.97 0.00
LF Ruffer Total Return O Inc 285.90 - -0.65 1.56
Strategic Global Bond A GBP Inc 1158.00 - 1.62 0.53 Pictet-Japanese Equity Selection-I JPY F ¥ 16808.91 - 169.48 0.00
Foord Asset Management Pictet-LATAM Lc Ccy Dbt-I USD F $ 145.73 - -0.05 0.00
Website: www.foord.com - Email: info@foord.com Strategic Global Bond B GBP Inc 657.74 - 0.92 1.18
Pictet-Multi Asset Global Opportunities-I EUR € 126.04 - 0.31 0.00
FCA Recognised - Luxembourg UCITS Pictet-Nutrition-I EUR € 243.71 - 1.22 0.00
Foord International Fund | R $ 39.84 - -0.09 - Pictet-Pacific Ex Japan Index-I USD F $ 445.52 - 1.74 0.00
CCLA Investment Management Ltd (UK) Foord Global Equity Fund (Lux) | R $ 12.71 - 0.01 - Northwest Investment Management (HK) Ltd Pictet-Premium Brands-I EUR F € 204.43 - 1.03 -
Senator House 85 Queen Victoria Street London EC4V 4ET 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9331 9220 Pictet-Russia Index I USD $ 94.24 - -0.95 0.00
Regulated
Authorised Inv Funds Link Asset Services (UK) Other International Funds Pictet-Russian Equities-I USD F $ 82.62 - -0.31 0.00
Foord Global Equity Fund (Sing) | B $ 15.56 - 0.00 0.00 Yuki International Limited (IRL)
Diversified Income 1 Units GBP Inc £ 1.60 1.60 0.00 1.69 65 Gresham Street, London, EC2V 7NQ Northwest China Opps Class T $ $ 2661.61 - 10.55 0.00 Pictet-Security-I USD F $ 289.35 - 0.38 0.00
Foord International Trust (Gsy) $ 39.55 - -0.08 0.00 Tel +44-20-7269-0207 www.yukifunds.com
Diversified Income 2 Units GBP Inc £ 1.54 1.54 0.00 1.72 Order Desk and Enquiries: 0345 922 0044 Northwest Feilong Class T $ $ 1867.40 - 20.51 0.00 Pictet-Select-Callisto I EUR € 98.35 - -0.21 0.00
Diversified Income 3 Units GBP Inc £ 1.55 1.55 0.00 1.70 Northwest Fund Class T $ $ 2379.49 - -6.31 0.00 Pictet-Small Cap Europe-I EUR F € 1344.50 - 5.19 0.00 Regulated
Authorised Inv Funds
Northwest Warrant Class A $ $ 1064.73 - -271.47 0.00 Pictet-ST Emerg Local Currency Debt-I USD F $ 105.60 - -0.25 0.00 Yuki Mizuho Umbrella Fund
Investment Adviser - Morant Wright Management Limited
Pictet-ST.MoneyMkt-I € 138.42 - 0.00 0.00 Yuki Mizuho Japan Dynamic Growth ¥ 6367.00 - 89.00 0.00
LF Morant Wright Japan A Acc 393.24 - 4.05 0.84
Pictet-ST.MoneyMkt JPY I USD ¥ 100837.25 - -2.66 0.00 Yuki Japan Low Price ¥ 39590.00 - 447.00 0.00
LF Morant Wright Japan A Inc 380.67 - 3.93 0.78
Franklin Templeton International Services Sarl (IRL) Pictet-ST.MoneyMkt-ICHF SFr 120.36 - 0.00 0.00 Yuki Japan Value Select ¥ 13326.00 - 189.00 0.00
LF Morant Wright Japan B Acc 426.62 - 4.40 1.35
JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Pictet-ST.MoneyMkt-IUSD $ 144.35 - 0.02 0.00 Yuki Asia Umbrella Fund
CG Asset Management Limited (IRL) LF Morant Wright Japan B Inc 386.49 - 3.99 1.37 S W Mitchell Capital LLP (IRL)
Other International Funds Pictet-Timber-I USD F $ 177.13 - 0.39 0.00
25 Moorgate, London, EC2R 6AY LF Morant Wright Nippon Yield A Acc 416.26 - 4.77 2.83 Regulated Yuki Japan Rebounding Growth Fund JPY Class ¥ 28346.00 - 452.00 0.00
Franklin Emerging Market Debt Opportunities Fund Plc Pictet TR-Agora I EUR € 127.17 - -0.47 0.00
Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859 LF Morant Wright Nippon Yield A Inc 329.30 - 3.78 2.90 SWMC European Fund B EUR € 16981.18 - -84.16 0.00 Yuki Japan Rebounding Growth Fund USD Hedged Class $ 1152.77 - 18.71 0.00
Pictet TR-Corto Europe I EUR € 141.20 - 0.13 0.00
FCA Recognised Franklin Emg Mkts Debt Opp CHFSFr 16.38 - 0.03 9.25 LF Morant Wright Nippon Yield B Acc 440.06 - 5.05 2.82 SWMC Small Cap European Fund B EUR € 13113.80 - -0.28 0.00
Pictet TR-Divers Alpha I EUR € 107.83 - 0.10 0.00
Franklin Emg Mkts Debt Opp GBP £ 10.63 - -0.02 6.70 LF Morant Wright Nippon Yield B Inc 348.24 - 4.00 2.88
CG Portfolio Fund Plc Pictet TR-Kosmos I EUR € 109.35 - -0.01 0.00
Franklin Emg Mkts Debt Opp SGD S$ 22.61 - 0.01 5.05
Absolute Return Cls M Inc £ 125.57 125.57 0.38 1.19 Pictet TR-Mandarin I USD $ 156.99 - 0.93 0.00
Franklin Emg Mkts Debt Opp USD $ 17.67 - 0.03 6.56
Capital Gearing Portfolio GBP P £ 33935.94 33935.94 119.36 0.95 Pictet-US Equity Selection-I USD $ 265.92 - 3.57 0.00
Capital Gearing Portfolio GBP V £ 164.49 164.49 0.57 1.22 Pictet-US High Yield-I USD F $ 174.60 - 0.29 0.00 Zadig Gestion (Memnon Fund) (LUX)
Dollar Fund Cls D Inc £ 165.66 165.66 -5.97 1.74 Pictet-USA Index-I USD F $ 274.32 - -0.38 - FCA Recognised
Dollar Hedged GBP Inc £ 99.83 99.83 -0.26 1.98 Lloyds Investment Fund Managers Limited (1000)F (JER) Pictet-USD Government Bonds-I F $ 708.99 - -4.09 0.00 Memnon European Fund - Class U2 GBP £ 178.84 - 0.35 0.00
Real Return Cls A Inc £ 204.20 204.20 -6.97 2.51 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Pictet-USD Short Mid-Term Bonds-I F $ 137.87 - -0.22 0.00
GAM Other International Funds Oasis Crescent Management Company Ltd Pictet-USD Sov.ST.Mon.Mkt-I $ 108.56 - 0.00 0.00
funds@gam.com, www.funds.gam.com Other International Funds Pictet-Water-I EUR F € 402.24 - 2.39 0.00
Lloyds Investment Funds Limited
Regulated Oasis Crescent Equity Fund R 10.35 - 0.02 0.74
Euro High Income € 1.5800xd - 0.0000 2.64
LAPIS TOP 25 DIV.YLD-D £ 112.02 - 0.72 1.91 High Income £ 0.8687xd - 0.0005 3.79
Chartered Asset Management Pte Ltd Sterling Bond £ 1.5600xd - 0.0010 2.28
Other International Funds Lloyds Money Fund Limited
CAM-GTF Limited $ 281719.25 281719.25 1207.40 0.00 Sterling Class £ 52.3170 - -0.0010 -0.20
CAM GTi Limited $ 719.89 - 42.44 0.00 Lloyds Multi Strategy Fund Limited Oasis Global Mgmt Co (Ireland) Ltd (IRL) RobecoSAM (LUX)
Raffles-Asia Investment Company $ 1.40 1.40 -0.01 2.91 Genesis Investment Management LLP Conservative Strategy £ 1.2980 - 0.0000 0.00
Regulated Tel. +41 44 653 10 10 http://www.robecosam.com/
Other International Funds Oasis Crescent Global Investment Fund (Ireland) plc Regulated
Growth Strategy £ 1.8740 - 0.0020 0.00
Emerging Mkts NAV £ 7.21 - -0.16 0.00 Aggressive Strategy £ 2.5250 - 0.0090 0.00 Oasis Crescent Global Short Term Income Fund I - Class A Dist $ 0.99 - 0.01 2.46 RobecoSAM Sm.Energy/A £ 19.12 - 0.14 1.43
Global USD Growth Strategy $ 1.6570 - 0.0000 0.00 Oasis Crescent Global Equity Fund $ 30.28 - -0.11 0.60 RobecoSAM Sm.Energy/N € 17.80 - 0.00 0.00
Oasis Crescent Variable Balanced Fund £ 9.66 - -0.02 0.12 RobecoSAM Sm.Materials/A £ 188.00 - 0.73 1.55
Dealing Daily
OasisCresGl Income Class A $ 10.82 - 0.00 2.96 RobecoSAM Sm.Materials/N € 198.37 - -0.63 0.00
Cheyne Capital Management (UK) LLP RobecoSAM Sm.Materials/Na € 131.31 - -0.42 1.53
OasisCresGl LowBal D ($) Dist $ 11.99 - -0.03 0.94
Other International Funds RobecoSAM Gl.Small Cap Eq/A £ 117.64 - 0.49 1.33
OasisCresGl Med Eq Bal A ($) Dist $ 12.69 - -0.03 0.48
Cheyne European Event Driven Fund (M) € 144.16 - -0.70 - Oasis Crescent Gbl Property Eqty $ 9.04 - -0.03 1.59 Platinum Capital Management Ltd RobecoSAM Gl.Small Cap Eq/N € 213.59 - -0.62 0.00
price updated (D) daily, (W) weekly, (M) monthly Other International Funds RobecoSAM S.HealthyLiv/B € 225.99 - 0.02 0.00
Merit Fixed Income Fund Platinum All Star Fund - A $ 131.90 - - -
RobecoSAM S.HealthyLiv/N € 216.73 - 0.04 0.00
+44-203-865-0430 RobecoSAM S.HealthyLiv/Na £ 159.43 - 1.17 1.19
Platinum Global Growth UCITS Fund $ 10.46 - -0.01 0.00
https://www.meritkapital.co.uk RobecoSAM S.Water/A £ 260.93 - 1.18 1.30
Platinum Global Dividend UCITS Fund $ 56.44 - -0.13 0.00
MeritKapital UK Ltd RobecoSAM S.Water/N € 230.51 - -0.60 0.00
Merit Fixed Income Fund $ 1042.31 - 4.21 0.00
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
Wednesday 16 October 2019 FINANCIAL TIMES 19

MARKETS & INVESTING

Analysis. Currencies Currencies

Peer-to-peer
Renminbi’s 10-year challenge to forex services
aim to bypass
dollar’s dominance has faded Wall St banks
China’s offshore renminbi EVA SZALAY — LONDON

debt market has halved Some of the biggest institutional inves-

Trade conflicts have made it
difficult for China to let its
money trade more flexibly
HUDSON LOCKETT — HONG KONG
EVA SZALAY — LONDON
A decade ago, China launched a high-
profile challenge to the dominance of
the US dollar, projecting a greater role
for the renminbi in the global financial
system. But the would-be challenger is
struggling.
The dollar is still used on one side of
88 per cent of all foreign exchange
trades, according to the latest triennial
survey by the Bank for International
Settlements, while the renminbi’s share
is just 4 per cent, with a rise in turnover
“only slightly faster” than the overall
market. The currency amounts for
about 2 per cent of total foreign
exchange reserves, according to the
IMF.
In Hong Kong, renminbi deposits
tracked by the Hong Kong Monetary
Authority have dropped more than a
third from their 2014 peak. And the
value of offshore renminbi bonds was
$53bn at the end of the first quarter of
this year, down more than half from the
2015 peak, according to the Asia Securi-
ties Industry & Financial Markets Asso-
ciation.
Market participants say internation-
alising the renminbi would require Bei-
jing to let the currency trade more flexi-
bly and to open up the country’s capital
account. “Right now it isn’t safe to do
either,” said Brad Setser, an economist
at the Council on Foreign Relations, a US
think-tank.
Beijing still yearns for a financing
system independent of the dollar, in
part to reduce Washington’s reach into
China’s business sector. A US appeals
court ruling earlier this year offered a
reminder of how far that reach extends:
the decision raised the possibility that
the Shanghai Pudong Development
Bank, a lender with $900bn in assets,
could be cut off from dollar-denomi-
nated funding for failing to provide
records on a Hong Kong-based com-
pany allegedly used to evade US sanc-
tions.
But progress is slow. At a conference
in September, Chris Hall, the London-
based head of trading at state lender
China Construction Bank, said US-
China trade tensions had put a damper
on the growth of offshore renminbi mar-
kets. There is a “tendency to take a step
back and wait and see”, he said.
During the depths of the financial
crisis, China had grand plans. Zhou
Xiaochuan, then governor of the
People’s Bank of China, called for sweep-
ing reforms to the dollar-dominated
international reserve system and a
greater role for the renminbi.
“The crisis and its spillover to the
entire world reflect the inherent vulner-
abilities and systemic risks in the exist-
ing international monetary system,” he
warned.
Global use of the renminbi would
reduce exchange rate risks for Chinese
companies, and minimise exposure to
sharp drops in dollar liquidity — one
driver of the fall in Chinese exports dur-
ing the financial crisis.
“There was both an objective to use
renminbi internationalisation as a
wedge to drive finance sector reform,
but there was also a very strong and
widely held view that having a more
fully independent currency was really
important to secure China’s economic
sovereignty,” said Arthur Kroeber, man-
aging director of research company
Gavekal Dragonomics.
Mr Zhou’s initiative came at an awk-
ward time. Despite having a large econ-
omy, China had neither deep financial
markets facilitated by an open capital
account nor widespread confidence in
its currency — elements deemed “fun-
damental determinants” of interna-
tional currency status by Harvard econ-
omist Jeffrey Frankel.
Yet the central bank pushed on,
creating an offshore market for ren-
minbi debt centred in Hong Kong. By
2014 annual offshore issuance had
climbed to Rmb112bn ($16bn), accord-
ing to Dealogic. The offshore exchange
rate is independent from the controls
used by the central bank on the onshore
rate, which limits moves against the dol-
lar to 2 per cent in either direction of a
daily fix.
since 2015 tors in the foreign-exchange markets
Total outstanding offshore renminbi are aiming to cut out Wall Street banks
bonds ($bn) from their trades, saying that by linking
110 up directly they could save hundreds of
millions of dollars in charges.
100 Two separate groups of investors are
backing platforms designed to net off
90 currency trades between them, rather
than doing deals with banks as interme-
80 diaries. Vanguard, which has more than
$5tn in assets under management, is
70 backing a members-only swap trading
facility known as FX HedgePool, which
60 will soon go live, according to chief exec-
utive Jay Moore.
50 In Europe, meanwhile, 11 big inves-
2015 16 17 18 19 tors are homing in on FX spot trading. A
study recently carried out by that group
Offshore renminbi bond suggests that they could match more
issuance slows than one-quarter of their trades, saving
Bonds priced (Rmb bn) them as much as $100 per million dol-
lars traded across the most liquid cur-
120 rency pairs. Savings in emerging market
currencies, where margins for the banks
100 are higher, were nearly double.
“These results show that it is possible
80 to net a significant portion of trades
ahead of going to market,” said Claude
60 Goulet, chief executive of the London-
based platform, called Siege FX.
40 The imminent launches of Siege and
HedgePool come as big banks’ trading
20 operations remain under pressure on a
0
2011 13 15 17 19
‘The results show that it is
Sources: Asia Securities Industry & Financial
possible to net a significant
Markets Association; Dealogic
portion of trades ahead
of going to market’
Renminbi But in August of 2015, the central
deposits tracked bank set the daily fix sharply weaker, variety of fronts, as regulatory changes
by the Hong inducing a devaluation in the normally and competition from smaller, nimbler
Kong Monetary stable onshore rate. Global markets start-ups squeeze businesses that once
Authority are convulsed and the offshore rate comprised the bulk of their revenues.
down a third pushed below its onshore counterpart, At Goldman Sachs, for example, reve-
from their 2014 spurring huge capital outflows on nues from trading fixed income, curren-
peak — SeongJoon fears of a further sharp depreciation. cies and commodities (FICC) came to
Cho/Bloomberg
Ultimately, Beijing tightened capital $4.7bn over the first nine months of the
controls to stem renminbi outflows, year, down 7 per cent from the same
which cut off liquidity to the offshore period a year ago, with the bank singling
market. out a lower haul from currencies. A dec-
Mr Kroeber contrasted this move ade ago Goldman earned $6bn of FICC
with the US decision in the 1960s not to net revenues in the third quarter alone.
throttle the nascent eurodollar market Other start-ups have tried in the past
when an offshore pool of dollar liquidity to develop peer-to-peer FX services but
began ballooning in Europe. China’s have struggled for traction. One of the
decision stabilised the renminbi, he key challenges has been the assumption
Global said, but left it bereft of credibility as an that investors’ bets would be too similar
international financial currency. “Who’s to make it possible to find offsetting
renminbi going to issue or buy bonds in a market trades for significant amounts of cur-
use would where liquidity can be turned off at the rency, which boosts the argument that
drop of a hat?” he asked. banks are vital for the process.
reduce This year, offshore renminbi bond Participants in such projects have also
exchange issuance totalled just Rmb16bn at the been wary of upsetting relationships
end of September compared with with the banks. While Siege or Hedge-
rate risks onshore issuance of Rmb4.5tn, accord- Pool could, in theory, wrestle away a
for Chinese ing to Dealogic. chunk of the $6.6tn-a-day FX market
Logan Wright, director of China from banks and brokers, both initiatives
companies, research at Rhodium Group, said there need some support from banks to pro-
and cut was still a case for the renminbi’s rise in FastFT vide credit and settlement services.
global reserves but, barring drastic Our global Andrew Maack, Vanguard’s global
exposure to changes to trade flows, not to the level of team gives you head of FX trading, has become the first
sharp drops the dollar. market-moving member of HedgePool’s member advi-
“It depends upon countries and mil- news and views, sory council, which will shape the plat-
in dollar lions of individual participants being 24 hours a day form’s direction. Standard Chartered
liquidity willing to hold the currency and trans- ft.com/fastft will provide credit for trading among
act in it,” he said. the members.

Equities Fixed income

Pimco co-founder Gross warns of slow
growth and end to generous share gains
JENNIFER ABLAN — NEW YORK
Bill Gross, the one-time “bond king”
who co-founded Pimco in 1971 and
built it into a $2tn asset manager, is
urging investors to prepare for slow
economic growth and an end to dou-
ble-digit annual stock market gains.
In his first investment outlook since
retiring in March, Mr Gross said yester-
day that with trillions of dollars in debt
offering negative yields, investors
should be holding stocks that promise
secure dividend payouts.
Mr Gross, 75, whose letters to inves-
tors are as famous for their quirky
asides and analogies as for their eco-
nomic and market analysis, employed a
1980s pop music reference to discuss
the impact ultra-low interest rates have
had on asset prices.
Financial markets, he said, “have
been ‘Saved by Zero’ as the rock group
The Fixx rather ironically sang way
back in 1983”.
Low rates boost stock valuations rela-
tive to bonds while stimulating the
economy. Mr Gross estimated that stock
prices in 2019 have risen roughly 15 per
cent because real 10-year Treasury
rates declined 80 basis points during the
year. “Since 2009, perhaps one quarter
of the 200 per cent rise in the US market
can be attributed to the 200-basis point
decline in real Treasury rates over the
same period,” Mr Gross said. “Bull mar-
kets in equities are born by lower real
rates and the historic run of the past
decade has been fertilised by the jour-
ney to zero.”
Mr Gross said further upside in equity
markets is limited, because central
bankers were “becoming wise to the
Bill Gross says further upside in
equity markets is limited
negative effects of rates at zero (or less)
that literally rob small savers and larger
financial institutions such as banks,
insurance companies and pension funds
of their ability to earn historically ‘guar-
anteed’ carry”.
In the absence of “substantial fiscal
stimulation”, he said, the boost from
negative interest rate yields may have
reached an end after years of double-
digit gains in equities, he said.
Mr Gross, who turned to investing
after serving as a US naval officer, co-
founded Pacific Investment Manage-
ment Co in 1971, attaining rock-star sta-
tus in investing circles as he attracted
hundreds of billions of dollars in assets.
His tenure at Pimco ended abruptly and
acrimoniously in September 2014,
when he was ousted.
Mr Gross then joined Janus Hender-
son Group in October 2014 but endured
a rocky four years of performance.
Mr Gross, whose net worth Forbes
magazine said had declined as of June
2018 from $2.5bn to $1.5bn, featured his
latest investment outlook on his web-
site, www.williamhgross.com, where
investors can view his market commen-
taries from the past 40 years.
Fears over costs of rescue package
push WeWork’s bonds to fresh lows
ANDREW EDGECLIFFE-JOHNSON
AND JOE RENNISON — NEW YORK
WeWork’s bonds dropped to new lows
as investors responded to the expected
high cost of a rescue refinancing being
put together by the bank that failed to
take the company public only a few
weeks ago.
WeWork’s bonds maturing in 2025
dropped to 79 cents on the dollar yester-
day, from more than 90 cents on Octo-
ber 11 and following a long weekend that
saw the bond market remain closed on
Monday. It gives the debt an implied
yield of more than 13 per cent.
One person who had seen the terms of
the roughly $5bn package put together
by JPMorgan Chase said they included
about $2bn in unsecured debt, struc-
tured as payment-in-kind notes and
carrying a high coupon of as much as 15
per cent.
The structure, which is still being
negotiated with investors, reflects the
risk lenders would be taking in financ-
ing a company that expects to burn
through its current funding by late
November.
“People are taking a look and realising
the rescue is going to be expensive,” said
John Dixon, a high-yield bond trader at
Dinosaur Financial Group.
“When you see the anticipated fund-
ing is going to pay something close to
twice what the bond issued last year
yielded, then you need to reprice.”
The details of the offer were first
reported by Bloomberg. JPMorgan and
WeWork declined to comment.
Payment-in-kind notes pay lenders a
WeWork looks set to
decide this week whether
to accept the debt deal
from JPMorgan
portion of the interest on the debt with
additional bonds, rather than cash.
Such notes are rare, said Vicki Bryan,
founder of research company Bond
Angle, as they tend to be issued by
“extremely distressed companies and
end up adding to an already massive
debt load.”
Two people familiar with WeWork’s
deliberations said they expected the
company to decide by the end of this
week whether to accept the debt deal
from JPMorgan, which was the lead
underwriter on its failed initial public
offering, or pursue an alternative pro-
posal from SoftBank.
The Japanese group poured more
than $10bn into the office company in
successive financing rounds that raised
its private market valuation to $47bn in
January.
It is now considering buying out other
investors — and diluting the stake held
by co-founder Adam Neumann — at a
valuation below $10bn, one person
familiar with the proposal said.
Should SoftBank in effect take the
company in house, WeWork insiders
expect it to insist on sweeping changes
to its board and management.
WeWork had expected to raise $3bn
to $4bn in new equity from an initial
public offering, on which another $6bn
in bank debt was dependent.
But the company’s failure to convince
public market investors to back it —
even at a cut-price valuation of $15bn to
$20bn — left a hole in its finances, fol-
lowing a period in which it ramped up
spending on new properties in anticipa-
tion of the fresh funds.
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
20 Wednesday 16 October 2019

The day in the markets Equity analysts have

What you need to know
what it takes to save the
3 Sterling shoots higher following
planet and their jobs
reports of Brexit breakthrough
Brexit hopes help UK domestic groups outshine global peers
3 UK’s domestic stocks eclipse global- Indices rebased

Alex Money
facing peers 102
3 Upbeat US earnings boost Wall Street FTSE 100
101
US and European stocks marched higher FTSE 250
yesterday as reports of a Brexit
breakthrough stole some of the limelight
100

99
Markets Insight
from the start of third-quarter earnings
season in the US. 98

S
Sterling shot up more than 1.5 per cent ellside analysts, who produce given way to newer and cheaper hires. needed to make sense of climate-related
against the dollar to $1.2798, its highest 97 research notes recommend- In June, the Financial Stability Board’s financial disclosure. These individuals
level in five months, after Bloomberg ing certain securities or sec- Task Force on Climate-related Financial make investment recommendations by
reported that UK and EU negotiators 96 tors, are having a rough time Disclosures (TCFD) released its annual combining deep industry knowledge
were closing in on a Brexit deal. of it. The growth in passive status report, based on its framework with modelling skills and reasoned
95
But the high was shortlived, with the investing has undercut equity research for companies to provide voluntary dis- value judgments. To date, this expertise
pound firming 1 per cent up for the day Sep 18 2019 14 Oct as a profitable business, while the closure on governance, strategy, risk, has been almost exclusively applied to
following another report suggesting an Source: Bloomberg
unbundling of fees, as demanded by performance and targets. traditional financial statements.
agreement was premature. Europe-wide Mifid II regulations, has In the two years since the framework But as investors start asking compa-
“We suspect that the finalisation of a put pressure on sales and margins. was launched, just 180 companies have nies to explain better how, for example,
deal in time for Saturday’s special session But relief is on offer, and from an publicly committed to implementing their business models will fare in transi-
of the Commons would probably bring healthcare its best-performing sector the 10-year gilt rose 5 basis points to 0.69 unexpected corner. If that brainpower such disclosures — progress that the tion to a world of “net zero” carbon
levels close to or above 1.30 into view,” following upbeat earnings from Johnson per cent while the equivalent German could be refocused on climate disclo- task force itself describes as insufficient. emissions, the role of the sellside analyst
said Stephen Gallo, European head of FX & Johnson and UnitedHealth Group. debt rose 4bp to minus 0.42. sure, it would offer a business line that Moreover, of its 11 recommended dis- could come into its own. Experienced
strategy at BMO Capital Markets. Those results, combined with European equities ended the day suits banks and investors alike. closures, an average of just 3.6 were analysts bring comparative insights to
Another beneficiary of the Brexit buzz JPMorgan posting increased Q3 profits, broadly higher, with the pan-region Stoxx The industry certainly needs to pivot. included by those companies in 2018, bear that neither generalist investors
was the domestically focused companies helped lift the gloom surrounding the Europe 600 index closing more than 1 per Fund managers have cut their budgets nor company managers have access to.
for externally produced equity research This could help investors outperform,
of the FTSE 250 index, which stood to
gain from an orderly EU exit. The mid-cap
protracted US-China trade war.
The technology-leaning Nasdaq
cent up, its highest point since late July.
But oil prices stayed near recent lows, by as much as 30 per cent since the EU
As investors start to ask by spotting where climate-related risks
index closed 1.34 per cent higher, Composite index advanced more than 1.2 as “weakening Chinese economic data regulations came into force in 2018. The about the transition to ‘net and opportunities are not priced in.
response has been predictable. Many As a former fund manager, I know
eclipsing the globally focused groups of
the FTSE 100, which ended the day flat.
per cent by midday in New York, while
the Dow Jones Industrial Average rose 1
raised concerns about global demand
growth”, said Al Stanton, analyst at RBC analysts have left the industry to pursue
zero’ emissions, analysts that most investors are not interested in
Across the Atlantic, Wall Street was per cent. Europe. Brent crude, the international careers in fund management, consul- can come into their own how “good” a company is in terms of its
also in a bullish mood. The S&P 500 index Reflecting the U-turn in investor benchmark, barely moved at $59.35 a tancy and investor relations. environmental impact. They are inter-
was up more than 1 per cent, with sentiment, bonds sold off. The yield on barrel. Ray Douglas The risk is that these departures ested in how misvalued it is. Good sell-
become an exodus, particularly if up from 3.1 in 2017. Putative users of this side analysts fundamentally under-
research budgets continue to shrink and data, such as fund managers, say that stand this. It is their stock in trade.
Markets update activities such as corporate access, a clarity of financial impact is the area Of course, their judgments on cli-
kind of matchmaking service connect- that most requires improvement. With- mate-related financial disclosures will
ing companies and investors, are out this, scope to test companies’ ability be as subjective as their judgments on
diverted away from investment banks. to respond to various climate-related regular financial statements. But the
US Eurozone Japan UK China Brazil One might conclude that, apart from risks — which is ultimately the point of best will stand out from the rest and be
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa sympathy for individuals that are dislo- the process — is going to be very limited. rewarded for their work. A moribund
Level 2998.75 1543.70 22207.21 7211.64 2991.05 104881.59 cated, this transition should be It is easy to understand why voluntary business model may yet be revived.
% change on day 1.10 0.93 1.87 -0.03 -0.56 0.56 applauded. The rules are improving climate-related financial disclosures Appropriate pricing of climate-re-
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ efficiency, generating about £70m of remain a niche activity. Companies gen- lated risk is essential if the capital mar-
Level 98.557 1.104 108.805 1.278 7.079 4.145 savings for investors in UK-managed erally do not rush to take on activities kets are to be effective in the transition
% change on day 0.105 0.091 0.360 1.590 0.168 0.460 equity portfolios last year, according to which, in the short term, have tangible to net zero emissions. Mandatory corpo-
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond the market regulator, without a mate- costs and fewer tangible benefits. rate disclosures of climate risk will soon
Yield 1.748 -0.419 -0.176 0.608 3.163 6.650 rial reduction in research coverage. The narrow range of disclosures by be on the agenda for the UN climate
Basis point change on day 1.750 4.000 0.790 5.500 -1.300 0.000 But anecdotal evidence suggests that the handful of companies that currently change summit. Step forward the sell-
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX) the quality of research has been do report suggests that such work is side analyst — eco warrior of our time.
affected. Analysts are having to cover pretty difficult. But it is precisely this
Level 346.74 59.28 53.46 1490.60 17.61 2796.80
more companies, leaving them less complexity that provides the base for The writer is programme director at Oxford
% change on day 0.90 0.10 0.02 0.77 0.03 -0.51
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.
time to compile detailed research on experienced analysts to step up and pro- university’s Smith School of Enterprise and
each. Highly experienced analysts have vide the competence and clarity that is the Environment, and a former fund manager
Main equity markets
S&P 500 index Eurofirst 300 index FTSE 100 index
3040 1560 7520

1520 7360
2960
1480
2880 7200
1440
| | | | | | | | |
2800 | | | | | | | | | | | | | | | | | | | |
1400 | | | | | | | | | | | | | | | | | | | | 7040 | | | | | | | | | | |

Aug 2019 Oct Aug 2019 Oct Aug 2019 Oct

Biggest movers
% US Eurozone UK
Unitedhealth 7.48 Seadrill 4.60 Land Securities 6.08
Anthem 6.91 Santander 3.76 British Land 5.45
Ups

First Republic Bank 6.47 Bnp Paribas 3.64 Auto Trader 5.32
Cigna 5.88 B. Sabadell 3.19 United Utilities 5.25
Nvidia 5.78 Unicredit 3.18 Lloyds Banking 5.24
%
H&r Block -2.44 Hugo Boss -2.15 Fresnillo -3.75
Conagra Brands -2.34 Man -1.99 Evraz -3.28
Downs

News -2.32 Accor -1.37 Reckitt Benckiser -2.51

Procter & Gamble -2.28 Reed Elsevier -1.30 Relx -2.42
News -2.07 Iberdrola -1.06 Compass -2.37
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

Goldman Sachs was the exception as a Rémy Cointreau was a faller after UK-exposed companies surged as reports
day of solid third-quarter updates helped Berenberg turned cautious based on of progress in Brexit deal negotiations
support US markets. Goldman faded as signs of slowing cognac sales in mainland sent the pound to a five-month high.
weak investment bank fees and an China. A field trip suggested that Property developers Land Securities and
unexpectedly small stock buyback meant shipments ahead of Chinese new year in British Land were the FTSE 100’s biggest
its earnings per share missed forecasts. January would disappoint and organic gainers, while lenders including Lloyds,
UnitedHealth led the health insurers growth from Rémy’s all-important cognac OneSavings and CYBG rose as traders
sharply higher after beating expectations division would stall as distributors ran pared bets on the likelihood of a Bank of
for the past quarter and giving reassuring down their excess stock, Berenberg said. England rate cut.
guidance. Anthem, Cigna and Humana European steelmakers slipped after a Whitbread rose after UBS added the
were among the peers to gain in concert. profit warning from Klöckner of Germany. Premier Inn owner to its “buy” list. A
Better than expected results also lifted It blamed prolonged weakness of global recent drop for the stock had priced in
Charles Schwab. The brokerage said that steel markets and renewed pricing assumptions that were too negative
client funds had reached a record $3.77tn, pressure in September. about average room rates, it said.
having brought in $56.6bn of new assets Commerzbank faded after Morgan Ocado was best performer among the
in the quarter. Stanley advised selling. Earnings and grocers after industry data pointed to
Nvidia rose after Merrill Lynch raised capital both looked fragile as falling asset improved sales growth in recent weeks.
its price target on the chipmaker and yields put pressure on net interest A housebuilder rally left Bellway
repeated “buy” advice. Advances in income, it said. The broker also noted behind after the company cautioned that
natural language processing would be the signs of deterioration in German rising build costs and stagnant house
next big catalyst for data centre demand, corporate lending and argued that price inflation were affecting margins.
and the breadth of Nvidia’s hardware and Commerzbank’s cost-savings programme Vesuvius led the capital goods stocks
software ecosystem provided an would only deliver results beyond 2021. lower on a profit warning, which the
advantage that no competitor could HelloFresh was in demand after the crucible maker blamed on reduced global
match, Merrill said. recipe box delivery group raised full-year steel production and weak car markets.
Manchester United jumped after co- guidance and posted better than Peers including RHI Magnesita, Bodycote
owner Kevin Glazer converted his 13 per expected third-quarter results. and Morgan Advanced faded in tandem.
cent stake in the football club from Interpump slid after Kelper Cheuvreux Renishaw, the maker of precision
family-controlled class B shares and into said that results from the pressure machine tools, slid after pulling forward a
the more liquid class A designation, which pumpmaker due next month were likely trading update by a week to warn that
raised the possibility of a sale. to show a “marked deceleration” in first-quarter sales were down 19 per cent
Bryce Elder organic growth. Bryce Elder year on year. Bryce Elder