Anda di halaman 1dari 36

WORLD BUSINESS NEWSPAPER

TUESDAY 8 MARCH 2016

EUROPE

Remember Reagan Women in Business

Bend and stretch

Is Donald Trump as dangerous as


they say? GIDEON RACHMAN, PAGE 11

Easing the pain of staying


supple THE FIT EXECUTIVE, PAGE 12

Scrap paintball days and add childcare if


you want gender balance SPECIAL REPORT

Oil price jumps


as markets
see beyond
resources rout

In the spotlight Burberry rattled by


mystery investors 5% stake swoop

Oil jumped back above $40 a barrel yesterday for the first time this year and
iron ore posted its biggest one-day gain
on record as more traders bet that the
worst of the 20-month commodity rout
was over.
The slump in oil and other commodity prices had raised concerns for the
health of the wider economy, with central banks warning of a possible deflationary spiral and a sharp slowdown in
emerging market growth.
But moves by some of the worlds largest oil producers to agree an output
freeze have helped put a floor under
prices, with Brent crude rebounding
50 per cent since mid-January.
The international oil benchmark
gained 5.6 per cent to $40.96 a barrel
the highest since mid-December and
with gains since mid-January reaching
50.4 per cent. It remains well below the
near-$100-a-barrel level it averaged
between 2010 and 2014.
Iron ore, one of the key commodities
for many miners, rose almost 20 per
cent to $62.60 a tonne the biggest oneday rise since the index began in 2009.
Officials in China, the worlds largest
importer of oil and metals, have vowed
to avoid a hard landing as they try to
move away from manufacturing and
infrastructure spending towards a more
service-based economy.
While analysts caution that excess
supplies in many commodity markets
should continue to weigh on prices, the
near-panic-level selling seen in January

i Rate of Beijing reserves outflow slows


Central bank data showed the outflow in foreign
exchange reserves at its smallest for eight months,
easing some anxiety over Chinas financial
stability. PAGE 6; THE SHORT VIEW, PAGE 15

i Fischer sees stirrings of inflation


Stanley Fischer, the Feds vicechairman, has said that the US may
be seeing first stirrings of a longawaited inflation rise as the impact of
a strong jobs market works its way
through the economy. PAGE 2

i Turkey eyes extra 3bn for migrant deal


The EU is nearing a deal with Turkey to turn back
all migrants reaching Greek islands in exchange
for sweeteners for Ankara, including an extra 3bn
in funding and access to European visas. PAGE 3

has abated. I think that if were not at


the bottom then we cant be far off, said
Julian Kettle, head of metals at Wood
Mackenzie. People are starting to get
far less negative about China.
Natural resources stocks have been
some of the biggest beneficiaries, with
Glencore and Anglo Americans share
price both almost doubling since the
beginning of the year after being the
worst performers on the FTSE 100 in
2015. They led gains alongside Chilean
copper miner Antofagasta, which is up
75 per cent since January 20.
Copper, aluminium and zinc have all
rallied by 10-25 per cent since January.
China will tackle overcapacity in its
steel and coal sector, policymakers said
at the annual meeting of the national
legislature in Beijing at the weekend.
Saudi Arabian officials are to meet
Russian counterparts in coming weeks
to see if the worlds top two oil exporters
can lead other producers to freeze output, as many have seen their national
budgets squeezed by the price collapse.
Hedge funds have largely switched
from betting against the oil price at the
start of the year to positioning themselves for further gains, regulatory data
show. US oil production has started to
decline in the face of lower prices,
though companies may keep output
going if the price recovers further.
Weve seen a return of risk appetite,
said Michael Wittner, analyst at Socit
Gnrale. [But] its going to be volatile
and its not a slam dunk that prices keep
going up from here in a straight line.

i Unease in Syria as ceasefire holds


The week-old ceasefire has forced a status quo that
might help a US that seeks a settlement but wants
to avoid entanglement. But one diplomat said the
truce had handed the country to Moscow. PAGE 4

i Mexico moves to hit back at Trump


Mexico has launched a charm offensive to counter
rhetoric from US Republican frontrunner Donald
Trump and highlight ties worth $1m a minute in
cross-border trade. PAGE 4; GIDEON RACHMAN, PAGE 11

i EU rules to raise pay of foreign workers


Christopher Bailey, now chief executive, directs a model in Burberrys studio in 2012 Charlie Bibby
BRYCE ELDER, ARASH MASSOUDI
AND PATRICK JENKINS
LONDON

A mystery investor has built


up a near 5 per cent in Burberry, prompting Britains bestknown luxury fashion brand
to seek help from its financial
advisers to defend it against
any potential takeover bid.
Burberry, with a market capitalisation of 6bn, sought aid
after its board could not determine the identity of the stakebuilder. One person close to the
company said it had attempted
unsuccessfully to ask HSBC, the
custodian for the position, to
reveal its client.

Markets page 27

The fashion group, which has


seen its value fall by more than
a quarter amid a slowdown in
Chinese demand, has called on
its existing bankers at Robey
Warshaw to help, according to
people close to the company.
Analysts suggested rival luxury goods groups such as
LVMH, or private equity investors, could be behind the transaction. In a takeover Burberry
could be valued at 8bn, or
17 a share, according to analysis from Macquarie. Burberry
is one of the few luxury brands
without family interest and
thus an easier target for acquisition, said Macquarie analyst
Daniele Gianera.

Burberry, headed by Christopher Bailey, is also concerned


an activist investor may be
behind the stake.
The buyers stake first went
over the 5 per cent disclosure
threshold on February 11, with
HSBC reporting a total holding
of 5.4 per cent four days later.
UK transparency rules usually require reporting of any
shareholding over 3 per cent,
but investment managers are
given partial exemption that
requires them to disclose at
more than 5 per cent. The stake
has since been reduced to
below that level.
Additional reporting by Mark
Vandevelde

Apple set to pay out $400m after final


bid to overturn ebook judgment fails
TIM BRADSHAW SAN FRANCISCO

Private Sector reporting


for duty in defence rethink
Analysis i PAGE 6

Austria
Bahrain
Belgium
Bulgaria
Croatia
Cyprus
Czech Rep
Denmark
Egypt
Finland
France
Germany
Gibraltar
Greece
Hungary
India
Italy
Kazakhstan
Kenya
Kuwait
Latvia
Lebanon
Lithuania
Luxembourg

3.60
Din1.7
3.60
Lev7.50
Kn27.50
3.50
Kc100
DKr32
E20
4.10
3.60
3.60
2.70
3.50
Ft990
Rup195
3.50
US$5.50
Kshs300
KWD1.50
6.99
LBP7500
4.30
3.60

Macedonia
Malta
Morocco
Netherlands
Nigeria
Norway
Oman
Pakistan
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Serbia
Slovak Rep
Slovenia
Spain
Sweden
Switzerland
Tunisia
Turkey
UAE

Den220
3.50
Dh43
3.60
Naira715
NKr34
OR1.50
Rupee 280
Zl 18
3.50
QR15
Ron17
5.00
Rls15
NewD420
3.60
3.50
3.50
SKr37
SFr5.90
Din7.50
TL10
Dh15.00

Apple has lost its final bid to overturn a


judgment that it broke antitrust laws
by conspiring to raise ebook prices, in
its latest bruising encounter with the
US judicial authorities.
The US Supreme Court rejected the
companys bid for an appeal against
lower court rulings that it engaged in
marketplace vigilantism against rival
Amazon and unreasonably restrained
trade by creating a cartel with publishers to control ebook prices.
The ruling comes as the company
begins a long fight with the US justice
department over whether it can be
forced to help investigators break open
an iPhone belonging to one of the killers
in the San Bernardino terrorist shootings in December.
It is also a blow to Tim Cook, chief

executive, who has called the case


bizarre and defended deals struck by
predecessor Steve Jobs and by Apples
internet services head, Eddy Cue.
Weve done nothing wrong there and
so were taking a very principled position on this, Mr Cook said in a 2013
interview. Were not going to sign
something that says we did something
we didnt do. So were going to fight.
Apple must pay $400m in compensation to people who bought ebooks
through its iBooks store, under the conditional settlement agreed in July 2014.
Five publishers have already paid out
$166m as part of their 2013 settlement.
But the Department of Justice said the
company and book publishers had
engaged in cynical misconduct
against the lower prices imposed by
Amazons Kindle store. Apples liability
for knowingly conspiring with book

STOCK MARKETS

Nasdaq Composite

Printed in London, Liverpool, Glasgow, Dublin,


Frankfurt, Brussels, Milan, Madrid, New York,
Chicago, San Francisco, Washington DC, Orlando,
Tokyo, Hong Kong, Singapore, Seoul, Dubai

1 0

2002.15

prev %chg
1999.99

Mar 7

INTEREST RATES
prev

Mar 7

price

yield

chg

97.41

1.91

0.04

99.14

1.59

0.00

1.292 Ger Gov 10 yr


124.684 125.266 Jpn Gov 10 yr

102.74

0.23

-0.02

103.64

-0.06

0.00

95.55

2.72

0.02

103.18

-0.51

0.00
chg

1.098

1.101 per $

0.911

1.420

1.422 per $

0.704

0.30 per
-0.25 per $

0.773

0.774 per

1.293

4721.96

4717.02

17058.40

17006.77

FTSEurofirst 300

1341.32

1344.62

Euro Stoxx 50

3019.44

3037.35

FTSE 100

6182.40

6199.43

FTSE All-Share

3394.68

3405.27

CAC 40

4442.29

4456.62

1.097
-0.31 SFr per
-0.32 COMMODITIES

Xetra Dax

9778.93

9824.17

-0.46

Mar 7

prev

Nikkei

16911.32

17014.78

35.92

20159.72

20176.70

-0.61 Oil WTI $


-0.08 Oil Brent $

37.63

Hang Seng

40.63

38.72

256.24

255.82

1267.90

1277.50

-0.59 per
-0.27 index

0.16 Gold $

113.520 113.805 per


161.243 161.774 index
87.351

86.947 $ index
1.094 SFr per

prev
0.909 US Gov 10 yr
0.704 UK Gov 10 yr

0.11 $ per
0.10 $ per

Dow Jones Ind

FTSE All World $

9 770174 736128

CURRENCIES
Mar 7

S&P 500

THE FINANCIAL TIMES LTD 2016


No: 39,106

publishers to raise the prices of ebooks


is settled once and for all, said Bill Baer,
assistant attorney-general of the departments antitrust division. And consumers will be made whole.
Customers who bought books at
higher prices will be repaid in store
credits.
The US government accused Apple of
being the ringleader in a conspiracy
with the worlds largest book publishers
to raise ebook prices using its iPad, at a
time when Amazons Kindle dominated
the market. Whereas Amazon set ebook
prices for the Kindle store, Apple introduced the agency pricing model with
its iBooks system, allowing publishers
to decide how much to charge.
The 2013 trial revealed that a string of
emails were sent by Jobs and Mr Cue to
publishing industry executives during
their negotiations over iBooks.

World Markets

Subscribe In print and online


www.ft.com/subscribetoday
email: fte.subs@ft.com
Tel: +44 20 7775 6000
Fax: +44 20 7873 3428

i Average Wall St bonus down to $146,200


The average Wall Street bonus slipped 9 per cent to
$146,200, as banks hired more staff and tried to cap
pay amid a surge in compliance costs and volatile
trading. PAGE 15; INSIDE BUSINESS, PAGE 16

3 Brent back above $40 a barrel


3 Biggest one-day gain for iron ore
DAVID SHEPPARD, HENRY SANDERSON
AND ANJLI RAVAL LONDON

Briefing

86.278

86.321 US Gov 30 yr
103.302 103.559 Ger Gov 2 yr
1.418

1.412

price

prev

Fed Funds Eff

0.34

0.24

0.1

%chg US 3m Bills
4.76 Euro Libor 3m

0.28

0.36

-0.08

-0.23

-0.23

0.00

0.59

0.59

0.00

4.93 UK 3m
-0.75 Prices are latest for edition

Data provided by Morningstar

A revamp of EU rules on foreign workers to be


unveiled today would see employers forced to raise
the pay of temporary staff in a move that would
have a big impact on the building trade. PAGE 2

Datawatch
Female employment rates
Aged 25-64, 2014 (%)
30 40 50 60 70 80
Germany
UK
France
Spain
Italy
Greece
Countries with more than one region shown
Source: Eurostat

In the EU, about


two in three
women aged 25 to
64 are employed.
The proportion is
higher in all
regions of the UK
and Germany. It is
lowest in the
south of Italy and
its islands, with
fewer than four in
10 women in
employment

FINANCIAL TIMES

Tuesday 8 March 2016

INTERNATIONAL
Senior policymaker

Employment law

Fed official sees first stirrings of inflation rise

EU proposes
tougher rules
for workers
posted across
borders

Fischer looks to impact of


strong jobs market to work
its way through economy
SHAWN DONNAN WASHINGTON

The US may be seeing the first stirrings of a long-awaited increase in


inflation as the impact of a strong jobs
market works its way through the economy, according to the Federal Reserves
second-in-command.
In a speech to a group of business
economists yesterday, Stanley Fischer,
the Feds vice-chairman, dismissed critics within the profession who have
pointed to wage stagnation in the US as
evidence that the traditional link
between strong employment and inflation must have been broken.
I dont believe that. Rather the link

has never been very strong, but it


exists, and we may well at present be
seeing the first stirrings of an increase in
the inflation rate something that we
would like to happen, he told the
National Association of Business Economists.
The comments were his last in public
before the March 15-16 meeting of the
policy-setting Federal Open Market
Committee, during which markets and
Fed observers expect the US central
bank to hold rates steady thanks to rising concerns about the global economy.
They also came alongside more downbeat remarks from another FOMC
member that highlighted what is likely
to be the debate inside the committee
when it gathers next week.
While Mr Fischer defended the socalled Phillips Curve, which describes
the link between employment and infla-

tion, as a resilient element of economic


theory, others on the committee have
expressed greater scepticism.
The issue is critical because inflation
has consistently been coming in below

The Fed still needs to be


mindful of decelerating
foreign demand
the Feds 2 per cent target rate even as
the jobs market has recovered, although
there have been signs of an acceleration.
In January, the USs core PCE consumer
price inflation rose to 1.7 per cent. February figures are due out on March 16,
the same day that the Fed will announce
the result of its latest deliberations.
Speaking across town to a group of
bankers yesterday, Lael Brainard, a

member of the Feds board of governors


who has emerged as one of its most
vocal doves, said the Fed still needed to
be mindful of weak and decelerating
foreign demand. It meant policymakers should not take the strength in the
US labour market and consumption for
granted, she said.
Tighter financial conditions and
softer inflation expectations may pose
risks to the downside for inflation and
domestic activity, she said. From a
risk-management perspective, this
argues for patience as the outlook
becomes clearer.
She also warned the FOMC should
put a high premium on clear evidence
that inflation is moving toward our 2 per
cent target and inflation has persistently underperformed relative to our
target.
Given the currently weak relation-

ship between economic slack and inflation and the persistent, depressing
effects of energy price declines and
exchange rate increases, we should be
cautious in assessing that a tightening
labour market will soon move inflation
back to 2 per cent, she said. We should
verify that this is, in fact, taking place.
Mr Fischer pointed to other problems, including a fall in the rate of productivity growth in the US and worldwide over the past 20 years.
There are few issues more important
for the future of our economy, and those
of every other country, than the rate of
productivity growth, he said.
But he also said the Fed and other central banks still had the capacity to
respond to any slowing globally, despite
concerns about the impact on monetary
policy of negative rates in Japan and the
eurozone on quantitative easing.

ECB Draghi reputation on line over recovery pledge


CLAIRE JONES FRANKFURT

Mario Draghi is under pressure to


deliver a convincing response to the global economic downturn this week.
The European Central Bank chief and
the rest of his governing council will
meet in Frankfurt on Thursday to
decide how to counter the threats posed
to the eurozone by the slowdown in
growth in emerging markets and the
sharp fall in the oil price.
A new stimulus package is seen as a
near certainty after prices dropped in
the year to February. New staff projections from the ECBs economists are
expected to downgrade economic forecasts, showing the eurozone will be saddled with weaker inflation for longer.
Mr Draghis own reputation as a man
able to do whatever it takes to steer the
eurozone towards recovery is at stake.
In December, the ECB president was
unable to deliver a package in line with
investors expectations.
There are several options available to
the governing council. None, however, is
free of drawbacks.

Rate cuts
The ECB charges 0.3 per cent on eurozone banks deposits parked in accounts
at Eurosystem central banks. Markets
expect the ECB to cut what is known as
the deposit rate by 10 basis points on
Thursday, with some ECB watchers
expecting a deeper cut to minus 0.5 per
cent. There was disappointment in
December when the central bank lowered the rate by just 10 basis points, and
not the 20 basis point cut that some had
hoped for.
But the mood on negative rates has
changed. The sell-off in European bank
equities since the start of the year was
driven partly by investors concerns
that the policy is eroding banks profitability.
Mr Draghi and another member of
the ECBs top-ranking executive board,
Benot Cur, have said central bankers
are not responsible for the profitability
of lenders, although Mr Cur said last
week that the ECB was well aware that
lenders had taken the brunt of the costs
of negative rates and had not passed the
levy on to retail depositors.
Vtor Constncio, the ECBs vice-president and the man responsible for the
central banks financial stability department, has said the ECB could cut rates in

In spotlight: ECB
president Mario
Draghi has said
central bankers
are not
responsible for
the profitability
of lenders
Vincent Kessler/Reuters

a way that mitigates the immediate,


direct impact on lenders.

Tiered rates
The ECB could follow the Bank of
Japans lead and introduce a tiered
deposit rate system to shield banks from
most of the impact of negative rates.
That would, however, expose the central bank to criticism it is engaging in
moves to weaken its exchange rate.
The BoJ introduced a tiered system
this year, charging its negative deposit
rate of minus 0.1 per cent only on a fraction of banks reserves stored in its coffers. The ECB could, like the BoJ, impose
a lower deposit rate on only some deposits. But while that protects the banks, it
would blunt one of the most important
channels through which negative rates
are meant to work.
The ECB views its shift below zero
interest rates as a complement to its

quantitative easing programme. Both


policies, it says, force banks and investors to buy riskier assets to compensate
for the costs of negative rates.
But a tiered system would weaken this
portfolio rebalancing effect. It would
also remove the pressure on banks to
pass on the costs of negative rates to
businesses and households, making it
less likely they would spend more.
There are serious doubts that negative rates can weaken currencies as
much as officials hope the BoJs surprise move only managed to halt the
yens appreciation for a few days.

Expand QE
The ECB intends to buy 60bn-worth of
mostly government bonds each month
from now until March 2017 under its
landmark quantitative easing programme. Many analysts expect the
governing council to take that figure

NOVEMBER 7 2015

HENRY MANCE LONDON

Spain; Fabripress, C/ Zeus 12, Polgono Industrial MecoR2, 28880 Meco, Madrid. Legal Deposit Number
(Deposito Legal) M-32596-1995; Publishing Director,
Lionel Barber; Publishing Company, The Financial Times
Limited, registered office as above. Local Representative
office; C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid.
ISSN 1135-8262..
UAE; Al Nisr Publishing LLC, P.O.Box 6519. Dubai. Editor
in Chief: Roula Khalaf. Origin of publication, twofour54,
Media Zone, Abu Dhabi.
France; Publishing Director, Dominic Good, 40 Rue La
Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)
5376 8253; Commission Paritaire N 0909 C 85347; ISSN
1148-2753.
Turkey; Dunya Super Veb Ofset A.S. 100. Yil Mahallesi
34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24.
ROLLING IN THE DEEP

Subscriptions & Customer service:


Tel: +44 207 775 6000, fte.subs@ft.com,
www.ft.com/subscribetoday
Advertising:
Tel: +44 20 7873 3794 asiaads@ft.com,
emeaads@ft.com
Letters to the editor:
Fax: +44 20 7873 5938,
letters.editor@ft.com
Executive appointments:
Tel: +44 20 7873 4909
www.exec-appointments.com
Published by: The Financial Times Limited, 1 Southwark
Bridge, London SE1 9HL, United Kingdom. Tel: +44 20
7873 3000; Fax: +44 20 7407 5700. Editor: Lionel Barber.
Belgium; BEA Printing sprl, 16 Rue de Bosquet, Nivelles
1400.
Germany; Dogan Media Group, Hurriyet AS Branch
Germany, An der Brucke 20-22, 64546 Morfelden Walldorf. Responsible Editor, Lionel Barber. Responsible
for advertising content, Dominic Good.
Italy; Poligrafica Europa, S.r.l, Villasanta (MB), Via Enrico
Mattei 2, Ecocity - Building No.8. Milan.
Owner, The Financial Times Limited; Rappresentante e
Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi Via G. Puecher, 2 20037 Paderno Dugnano (MI), Italy.
Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in
Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1
.comma 1, DCB Milano.

361_Cover.PRESS.indd 1

Editorial Comment page 10

The review of the blocs posting of


workers directive, due to be published
today, is intended to fulfil a promise
made last year by Jean-Claude Juncker,
the European Commission president, to
ensure the same pay for the same job at
the same place.
The rule change has been strongly
pushed by countries including France,
Germany and Belgium, which argue
that existing EU rules on the posting of
workers can be abused by employers to
undercut local labour laws.
But central and eastern European
governments fear the initiative could
turn into an attack on the competitiveness of their companies, by forcing them
to pay higher wages to staff that they
post abroad. The plans are also opposed
by business groups.
More than 40 per cent of all posted
workers in the EU are in construction.
Other industries where the practice is
common include agriculture, transport
and financial services. The countries
that send the largest amount of workers
to other countries include Poland, Germany and France, while Germany,
France and Belgium receive the biggest
number from other EU states.
In 2014, there were more than 1.9m
posted workers in the EU, according to
commission data. This is an increase of
10 per cent on 2013 and up 44 per cent
since the start of the decade, but still
only represents less than 1 per cent of
overall workers in the EU.
Existing EU law on the posting of
workers has long been controversial. In
2009, the rules were at the centre of
wildcat strikes in the UK after Italian
company IREM used Portuguese and
Italian workers for construction work at
Totals Lindsey Oil Refinery in Lincolnshire. Unions said that the practice
undermined a commitment from then
prime minister Gordon Brown to deliver
British jobs for British workers.
The EU regulation, adopted in 1996,
was meant to clarify how the principle
of free movement of workers applied to
employees temporarily sent elsewhere.
Specifically, it said that some parts of the
host countrys labour law, including
minimum wages and paid holidays,
should also apply to posted workers.
But some governments and trade
unions argue that the law has been
changed by a series of EU court judgments and that the legislation has
instead become a vehicle for posting
companies to undercut wage agreements and undermine other social
rights. The EU agreed measures in 2014
intended to tackle some abuses, including sham arrangements of employers
using letterbox companies to falsely
claim their workers were posted.
A draft of the commission proposals,
obtained by the FT, removes wording
entitling posted employees to the minimum rates of pay applicable in their
host country and replaces it with a reference to remuneration necessary for the
protection of workers.

Migrants spark Euroscepticism in Midlands

Subscribe to the FT today at ft.com/subscription

1 Southwark Bridge,
London SE1 9HL

from 60bn to 70bn on Thursday.


The latest economic projections from
ECB staff, which governors will see at
the meeting, will be the first to forecast
what will happen to inflation in 2018. If
inflation is expected to remain below
target until then, the asset purchase
programme may be extended for at
least another six months.
The ECB could also buy other assets
such as corporate bonds or bank bonds.
An expansion in the QE programme
has already met with resistance from
the governing councils hawkish wing,
which is much keener on rate cuts than
bond purchases. However, the fiercest
of the hawks, Bundesbank president
Jens Weidmann, is one of four of the governing councils 25 members without a
vote this month under the ECBs rotating voting system, potentially giving Mr
Draghi a freer hand to satisfy investors.

Construction companies and other


employers would be required to grant
better pay to temporary workers they
enlist from other EU countries under
plans to strengthen a wide-ranging
employment law that has long proved
contentious.

Britain. Brexit debate

MAKE A SMART INVESTMENT

FINANCIAL TIMES

There are
several
options
available
to the
governing
council.
None,
however, is
free of
drawbacks

JIM BRUNSDEN BRUSSELS

21/10/2015 10:51

Copyright The Financial Times 2016.


Reproduction of the contents of this newspaper in any
manner is not permitted without the publishers prior
consent. Financial Times and FT are registered trade
marks of The Financial Times Limited.
The Financial Times adheres to a self-regulation regime
under the FT Editorial Code of Practice:
www.ft.com/editorialcode
Reprints are available of any FT article with your
company logo or contact details inserted if required
(minimum order 100 copies).
One-off copyright licences for reproduction of FT articles
are also available.
For both services phone +44 20 7873 4816, or email
syndication@ft.com

Satvinder was born in India, arrived in


Britain at the age of three and has run a
shop in West Bromwich for decades.
But he, like many others in this onetime industrial powerhouse, has little
sympathy for more recent arrivals
whose rising numbers have gone hand
in hand with a backlash against the EU.
Theyve never paid into the system,
the quiet, middle-aged man says of
migrants from the bloc. When my
father came, he never claimed a penny
in benefits. If he was out of a job one
week, he was in a job the next week.
Most economists say that EU
migrants contribute more in taxes and
national insurance than they take in
benefits, but many voters register
mounting concern at the economic and
cultural impact of new arrivals.
Sandwell, the borough of which the
town forms part, has experienced many
previous waves of immigration since the
1960s. Yet it is one of the 10 most Eurosceptic areas in England and Wales,
according to YouGov, a British pollster.
Peter Durnell, the local chairman of

the anti-EU, UK Independence party,


says migration is set to be the big issue in
the June 23 In-Out referendum in British membership. Its the emotive one,
he says. It strikes a chord.
As of 2013, the last year for which full
data exist, there were 6,000 Polish
nationals in Sandwell, roughly on a par
with the local Indian population. Since
then central Europeans have kept coming to a town already suffering from
social and economic strains.
At the moment I feel were being
abused, said Octavia Carrasca, a Sandwell resident originally from St Lucia, as
she waits at a bus stop along a high street
lined with half a dozen central European shops. People are coming here
and theyre getting things I never got.
Such views have set much of the context for the EU referendum, but do not
necessarily dictate voting intentions.
While the Leave campaign for the UK
argues Britain could introduce restrictions on EU immigration without forfeiting access to the blocs single market,
officials in Brussels and national capitals insist that no such arrangement is
on offer if the UK breaks away.

Attitudes towards immigration are


the reason were having the referendum, said John Curtice, senior research
fellow at NatCen Social Research. Attitudes towards the economy are what
will decide the outcome.
One challenge for the campaign for

Brexit
In or Out
The FT Guide
ft.com/brexit

Britain to remain in the EU is that few


residents in towns such as West Bromwich appear to associate the bloc either
with concrete achievement, or their
own identity.
I wasnt born in Europe; I was born
here in West Bromwich, says Irene
Hooper, a retired secretary. They want
us to lose our identity and its wrong.
Sandwell qualifies as one of the most
deprived areas in the UK, according to
the Office for National Statistics. The
closure of nearby coal mines and steel

factories hit the region in the 1980s;


today, more than 6,000 families are on
the waiting list for social housing.
The area remains strongly identified
with the national opposition Labour
party: the party holds 71 of 72 council
seats and all three of the main parliamentary constituencies. The only nonLabour councillor is from Ukip, which
won its first council seat in 2014, taking
a white, working-class area that previously voted for the far-right British
National party. The party is looking to
broaden its support.
Darren Cooper, the Labour leader of
the town council, describes himself as a
bit Eurosceptic and recently argued
that Sandwell should not take any more
asylum seekers until wealthier boroughs took their share.
Immigration does put pressure on
local schools, on local health services,
he says. [But] what Im worried about
is that [the referendum] doesnt
become a vote on Europe; it becomes a
vote on whether or not we have
migrants . . . Weve always had
migrants, and theyve integrated.
Janan Ganesh page 11

Tuesday 8 March 2016

FINANCIAL TIMES

INTERNATIONAL

Turkey seeks
sweeteners in
talks with EU
on migrant crisis

Zaman seizure
Leaders avoid clash
over media crackdown

Ankara wants extra funding, visas for


Schengen area and resettlement vow
DUNCAN ROBINSON AND ALEX BARKER
BRUSSELS

Turkey and the EU are nearing a deal to


turn back all migrants reaching Greek
islands in exchange for a host of sweeteners for Ankara, including an extra
3bn in funding and access to European
visas.
EU leaders and the Turkish premier
were negotiating into the night yesterday amid accusations of blackmail
after Ankara presented a list of fresh
demands just before the meeting as the
price for radical measures including the
return of all irregular Syrian migrants
who land in Greece.
Diplomats said a deal was taking
shape, with the EU side reluctantly
accepting most of Ankaras wishlist on
funding, visas for Europes passportfree Schengen area and the direct resettlement of Syrians from Turkey. However, several EU countries balked at
accelerating Turkey's EU membership
talks, a red line for Ankara. One senior
diplomat involved in the talks reckoned
the negotiations could run into a second
EU summit scheduled for March 17.
The hard bargaining is Europes second big push in less than three months
to secure Ankara's support on migration, an endeavour that has led many
EU leaders to muffle their concerns
about the Turkish governments
authoritarian turn.
A deal struck in November extended
work rights for Syrians but barely
dented the flow of migrants across the
Aegean. The refugees are outrunning
the EU's decisions. Were making the

same mistakes one council to another,


said Dalia Grybauskaite, the Lithuanian
president. We have to talk [to Turkey]
but we must resist blackmail.
The centrepiece of the revised pact
involves Turkey accepting the return of
all migrants, including Syrians, who
reach Greek islands. That is far more
ambitious than a previous plan for the
EU to send back only non-Syrian
migrants. A draft of the summit deal
seen by the FT casts the measure as
temporary. Human rights groups are
already questioning the legality of a
mass returns policy. Three diplomats
said the question of whether returns
would cover all migrants, or just nonSyrians, was still under discussion.
This strict returns policy would be followed by a German-led group of countries taking an equivalent number of
Syrian migrants directly from Turkey.
For every Syrian readmitted by Turkey
from Greek islands, another Syrian will
be resettled from Turkey to the EU
member states, the draft states.
The hope is that automatic returns
even for a temporary period of two or
three months would deter the 2,000
people crossing the Aegean each day,
while offering Syrians an incentive to
take a legal route to Europe. Donald
Tusk, the European Council president,
wants the measure to signal that the socalled western Balkans migration route
to Germany is closed.
In return, the EU is willing to commit
an extra 3bn of aid for Turkey from
2018, once its existing 3bn pledge of
support for 2016 and 2017 is exhausted.

Trapped: two
men stand next
to a razortopped fence at
the Macedonian
border near the
Greek village of
Idomeni
Dimitar Dilkoff/AFP

This amounts to a promise to continue


sharing the financial burden of supporting more than 2m Syrian refugees in
Turkey.
Alongside this, the EU would in June
grant Schengen visa privileges for Turkish citizens, according to the draft,
although this is highly contentious.
The final outstanding issue is
Ankaras insistence that the EU fasttrack the opening of several negotiating
chapters in its EU membership bill.
While Germany is relaxed about this,
Cyprus has adamantly refused to cede
ground until its own recognition dispute
with Turkey is resolved.
Turkeys position as the staging
ground for more than 1m Middle Eastern migrants at the gateway to Europe
has made it a pivotal player in the EUs
effort to contain the crisis and given
Ankara enormous leverage. Ahmet

We have to
talk [to
Turkey] but
we must
resist
blackmail
Dalia
Grybauskaite,
Lithuanian
president

Davutoglu, Turkish prime minister, said


that the proposed deal demonstrated
how indispensable the EU is for Turkey
and Turkey for the EU. Speaking before
yesterdays meeting, Mr Davutoglu
added: The whole future of Europe is
on the table.
But its last-minute demands, presented late on Sunday to Angela Merkel,
the German chancellor, threatened the
fragile consensus in Europe over the
political price it was willing to pay for
Turkish co-operation.
Although Brussels has come up with
policies aimed at controlling the flow
from relocating refugees across Europe
to introducing a European border guard
and sending aid to Greece most of
these have either flopped or not yet
been implemented.
Additional reporting by Stefan Wagstyl
in Berlin

EU leaders tiptoed around Turkeys


clampdown on media groups
yesterday, mindful that strong
public objections could jeopardise a
summit deal on migration.
Several leaders raised concerns
in public and private about Turkeys
seizure on Friday of the countrys
biggest opposition media group
and bestselling newspaper Zaman,
which is being investigated over its
ties to outlawed cleric Fethullah
Gulen. But the criticism was
carefully weighed so as not to
endanger any pact over migration,
a priority for the bloc.
Belgium, France and
Luxembourg made critical public
remarks on the issue, while the UK
and Jean-Claude Juncker, the
European Commission president,
were among those who mentioned
the Zaman clampdown with Ahmet
Davutoglu, Turkish premier. But in a
sign of EU leaders eagerness to
secure a migration deal, the UK and
the commission were both happy
for talks covering justice and the
rule of law to begin as part of
Turkeys application to join the EU.
Selahattin Demirtas, the Kurdish
leader of the Peoples Democratic
party, said Turkish President Recep
Tayyip Erdogans leverage over the
EU on the refugee issue had given
him a free hand to use the military
against Kurdish militants in the
south-east. Since December, Turkey
has deployed the army in three
Kurdish-majority cities to disarm a
youth militia. Hundreds of fighters
and civilians have been killed.
[Erdogan is using] the refugee
crisis to blackmail the EU, said Mr
Demirtas. This crisis should not
become a business deal.
Some leaders offered mild
criticism before the summit.
Franois Hollande, the French
president, said: The press must be
free everywhere, including
everywhere in Turkey.
Germany said the issue had been
raised in Chancellor Angela
Merkels talks with Mr Davutoglu.
But in public, Ms Merkel stayed
quiet. Alex Barker, Brussels

FINANCIAL TIMES

Tuesday 8 March 2016

INTERNATIONAL
Border raid

Democratic race

Tunisia thwarts attack as dozens are killed

Clinton and
Sanders take
stand against
fracking
in US debate

HEBA SALEH CAIRO

Tunisia has said it foiled a dawn attack


by suspected Isis militants against
army and police posts close to its border with Libya.
Farhat Al Harchani, defence minister,
said yesterday that security forces had
killed at least 35 of the attackers and
arrested six others in the town of Ben
Guerdane. Ten members of the forces
andsevencivilianswerealso killed.
The raid by suspected Islamic State,
or Isis, militants is the biggest operation
of its kind against the Tunisian security
forces and underlines the dangers of
spillover from the conflict in Libya,
where the collapse of state authority has
allowed the extremist group to establish
a stronghold.
Beji Caid Essebsi, president, said:
This is an unprecedented attack,
planned and organised, and whose goal
was probably to take control of this area
and to announce a new emirate.
Tunisia sealed all border crossings
with Libya and intensified aerial surveillance of the frontier. A curfew was also
imposed on Ben Guerdane from 7pm to
5am for as long as the security operation continues,saidnationaltelevision.
The army said it was still hunting

other members of the militant groups


responsible and urged residents to stay
indoors and be vigilant. The town has
been sealed, added state TV, and all
schools in the area have been closed.
Tunisians are concerned that action
by international forces against Isis in
Libya might deepen the chaos in the
already lawless nation and drive more

militants across the border. At the same


time Tunisian Isis militants have been
using Libya as a base from which to
stage attacks on their own country.
A US air strike in February on
Sabratha in Libya killed more than 40
people believed to belong to Isis, including many from Tunisia. Noureddine
Chouchane, a Tunisian militant leader

Invasion fears
Renzi plays down chances
of Libya intervention

an overwhelming majority of Italians


opposes military action.
Officials and diplomats say the
military has for months been planning
to lead an international coalition,
possibly involving thousands of troops
in Libya, and that those preparations
have reached their final stages.
But in an effort to quell concerns that
a move was imminent or a foregone
conclusion, Mr Renzi said in a television
interview on Sunday that military
action was no video game and that
Italy would not invade Libya with
5,000 troops, as long as he was in
office. But he added: If there is a need
to intervene, we wont hold back.
Italian officials say they would only
take action if it was requested by a new
Libyan national unity government.

Matteo Renzi has sought to soothe


Italians fears that Rome is about to
embark on an invasion of Libya, even as
contingency planning intensifies for
military intervention.
The prime minister faces one of the
most difficult dilemmas of his two years
in office over the mounting chaos in the
war-torn north African state, where Isis
has established a foothold.
Rome has long seen Libya 200
miles away and a key source of oil and
gas as a strategic interest, but
sending troops carries big risks.
According to two polls in recent days,

alleged to have organised two attacks


last year that killed dozens of western
tourists in Tunisia, was reported to be
among those who died.
Some analysts believe yesterdays raid
may be linked to the Sabratha air strike,
perhaps an attempt by Isis to show it was
stillpotentdespiteitslossesthere.
I think it has to do with the Sabratha
However, UN-backed efforts to help
form a government have struggled.
The officials insist any Italian
operation would be focused on training
local military and police and protecting
infrastructure rather than directly
fighting Isis. But they are adamant they
are ready to move quickly if necessary.
If the Libyan government makes a
request, I think that we could satisfy it
within days, said one defence official.
Claudio Bertolotti, associate research
fellow at the Milan-based Institute for
International Political Studies,
envisages a combined force numbering
6,000 troops, of which about half would
be Italian. It would probably include
contributions from the UK, France, and
possibly others. The US has no plans to
send ground troops. James Politi

attack which largely targeted Tunisians, said Issandr El Amrani, North


Africa director of the International Crisis Group. However, there were also
signs that something like this was going
to happen because Isis has been boasting on social media that it had 1,000
supporters in Ben Guerdane.
He noted that the town was where the
Tunisian state has its least presence and
wherethereisalreadyaconduitofsmuggled goods from Libya, with the same
tribesandfamilies straddlingtheborder.
He added he had information that those
targeted in yesterdays attack included
security officials who were killed in their
homes, suggesting the attackers had
localinformationorcomplicity.
Tunisia has recently completed a
200km barrier, including an earth wall
and trenches, on the border with Libya
to stop militants and smugglers, but as
the latest violence suggests, some are
stillmanagingtogetacross.
This is the second time in less than a
week that security forces have clashed
with militants assumed to have arrived
from Libya. On Wednesday, the authoritiessaidtheyhadkilledfivemeninafight.
The group was intercepted after forces
learned militants might try to cross the
borderafterthestrikeonSabratha.

Syria. Fighting pause

Ceasefire fails to boost hopes for peace


Groups opposing Assad
regime refuse to confirm
return to Geneva negotiations

Changing conflict
Pre-ceasefire, Feb 24-26

TURKEY

TURKEY

ERIKA SOLOMON BEIRUT

After little more than a week the cessation of hostilities in Syria has slowed the
bloodshed but maintained a patchwork
of battle zones across the country a status quo that may do little to end the conflict,butcouldbeenoughforaUSadministration keen to push for a settlement
andavoidfurtherentanglement.
For Syrias opposition, which
launched the 2011 revolt against President Bashar al-Assads rule, it is still an
improvement on conditions before the
ceasefire. There has been a marked drop
in violence in areas such as the southern
regions held by rebels close to Jordan
and Saudi Arabia.
But the High Negotiations Committee
(HNC), which represents the opposition
at peace talks in Geneva, argues conditions are not good enough to guarantee
it will return to negotiations this month.
Other regions, such as northern Syria,
where radical Islamist forces dominate
the uprising, remain a war zone with
daily clashes and air strikes by the
regime and its patron Russia. This will
do little to end a refugee crisis that has
kept Syrians fleeing toward Europe.
This is not cessation of hostilities. Its
a reduction of hostilities, said Emile
Hokayem of the International Institute
for Strategic Studies, who is critical of
the US efforts in Syria.
It is going to create a very unequal
Syria where some loyalist areas get
rewarded and some opposition areas
struggle to survive.
Before the ceasefire began, at least
70,000 people were camped out along
the frontier with Turkey, which has so
far kept its crossings sealed, partly due
to European pressure. Activists say
thousands more have fled to the borders
even since the ceasefire.
Actually in the western countryside
of Idlib, the fighting hasnt slowed, its
increased, said activist Tareq Abdelhaq. There has been shelling night and
day . . . I believe tens of thousands of
people have moved to the border.
The Syrian Observatory for Human
Rights said 135 people were killed in the
first week of the ceasefire, 32 of them

Post-ceasefire, Feb 27 - Mar 4

Idlib

Aleppo
Alep
lee

Idlib
dlib

Raqqaa

Alep
eppo
ep
p
Raqqaa

SYRIA

SYRIA

SYRIA

SYRIA

Areas of control
Isis control
Isis support
civilians. The US-Russia brokered deal
aims to halt violence and stop territorial
advances between Syrias warring parties, but allows for targeting the jihadi
force Isis and al-Qaedas Syria branch,
Jabhat al-Nusra.
Even as rebels claim that US-backed
groups signed on to the ceasefire are
being hit, Mr Assad and Russia can legitimately claim their attacks are aimed at
Nusrafighters,spreadacrossrebelareas.
Critics say this reveals the failure of

In the western
countryside of Idlib,
the fighting hasnt
slowed, its increased

Dera
errra
raa
a

Der
eeraa
r

Homs

Airstrikes
Rebel-held

Kurds

Russia

Rebels/Nusra*

Syrian regime

US-led coalition

the monitoring system. Washington


prepared a call-centre to report
violations, but media reports suggest it
did not have enough Arabic speakers.
Russia has no interest in asking all
these Islamist rebels what particular
shade of grey they are, said a diplomat
close to Moscow. For both Russia and
the US, this is just about keeping a cleanshaven face, creating a nice exterior for
what inside is still a mess.
Washington has little reason to
challenge the ceasefire, he added, as it
had essentially handed Syria to Moscow.
Opposition groups are bitter the US has
no appetite to increase its involvement,
limiting its role to rooting out Isis militants in the east.
Americas priority is to stay out of
Syria at any cost, said an opposition fig-

ure involved in talks with western diplomats, who asked not to be identified.
The problem with this ceasefire is the
risk of creating a new norm that western
officials justify by saying well, at least
theres a ceasefire. Some opposition figures, such as Observatory head Rami
Abdelrahman, still support it and hope
it will be enough to get Syrias warring
sides back to Geneva for peace talks.
The specific areas targeted by Mr
Assad and Russian air cover suggest the
regime is continuing offensives. It
appears to be focused on cutting supply
lines in northern Syria and keeping up
pressure on the opposition near its seat
of power in Damascus.
In central Syria, opposition activists
say the goal seems to be to split rebels in
Homs and Hama, which could in effect

* Jabhat al-Nusra, al-Qaeda's Syrian affiliate


Source: Institute for the Study of War

impose a siege on the rebel pockets in a


largely regime-controlled region.
Rebels warn that if regime advances
wipe out their territory, they will change
to guerrilla warfare. It wont be over,
but maybe it will become like Vietnam,
said Bassam Haj Mustafa of the Nour alDin al-Zinki brigades. We will dig down
underground, but we will hang on.
This presents a problem for Washington: as it loses the trust of the opposition
and its regional backers, it could lose the
ability to deliver them to talks that can
end the countrys war.
The US has burnt its regional and
local allies, Mr Hokayem said. When
the uprising flares again, be prepared
for a monster worse than Isis.
Additional reporting by Noam Raydan in
Beirut

ED CROOKS NEW YORK

Both contenders for the Democratic


partys nomination in this years US
presidential election have taken a stand
against hydraulic fracturing, a technique that is essential for most of the
countrys oil and gas production.
In a televised debate between the two
candidates on Sunday night Hillary
Clinton, the former senator and secretary of state who is the frontrunner, set
out ideas for regulating hydraulic fracturing, or fracking, to limit its environmental impact.
When those regulations were in place,
she said, I do not think there will be
many places in America where fracking
will continue to take place.
Bernie Sanders, a senator from Vermont who is her only remaining rival for
the partys nomination, said: I do not
support fracking. He has previously
argued it is impossible for fracking to be
conducted safely.
Hydraulic fracturing involves pumping a mix of water, sand and chemicals
into wells at high pressure to crack the
rock, allowing the oil and gas to flow out.
It has been used since the 1940s, but
advances in the technique from about 15
years ago have enabled a revolution in
oil and gas production in the US.
Combined with horizontal drilling to
send wells sideways through layers of
resource-bearing rock, modern fracking has made it possible to produce oil
and gas from previously unyielding
shales and other tight rocks. About
60 per cent of the gas and 55 per cent of
the oil produced in the US comes from
shale and similar sources, and a ban on
fracking would make any new production in those areas impossible.
The opposition to fracking from Mrs
Clinton and Mr Sanders marks a break
from President Barack Obama, who has
allowed domestic oil and gas production
to flourish, taking only modest steps to
regulate the industry at a federal level.
The administrations Environmental
Protection Agency concluded last year
there was no evidence that fracking had
caused widespread water pollution.
Louis Finkel, executive vice-president of the American Petroleum Institute, the industry group, said shutting
down US production would make the
country less competitive and more reliant on imported oil and gas. He added:
US leadership and those on the campaign trail are accountable to the American people, and US consumers would
be hurt by such anti-consumer policies.
Jason Hutt, chair of the environmental and natural resources practice at
Bracewell, a law firm, said he did not
expect a total or near-total ban on fracking to take effect if Mr Sanders or Mrs
Clinton became president.
You cant just shut off the vast majority of domestic production in this country: thats a completely unrealistic
energy policy, he said.
Instead, he said, a Democratic president could be expected to take an
increasingly stronger role in regulating
the industry. Most oil and gas regulation
today is handled by the states.
Mrs Clinton said at the debate she
would allow fracking to proceed only if
the local community and the state
agreed, there was no water pollution or
leakage of methane, and the oil and gas
companies fully disclosed the chemicals
they were using.
Mark Brownstein of the Environmental Defense Fund said it was up to the oil
and gas industry to disprove her suggestion that fracking would be rare if her
proposed regulations were in place. He
said: If the industry is saying that it
really cant produce oil and gas while
protecting water and stopping methane
emissions, then maybe it shouldnt be
allowed to pursue those practices.

PR campaign

Mexico in charm offensive to mend fences in US and counter Trumps rhetoric over wall
JUDE WEBBER MEXICO CITY

Fed up of being bashed by Donald


Trump, Mexico is planning a US political charm offensive to set the record
straight about a bilateral relationship
worth $1m a minute in cross-border
trade and millions of jobs.
Rather than strike back at the man
who has promised to build a great wall
between the trading partners, the government plans to re-educate presidential campaign managers and the media
to counteract misinformation about
Mexico in the US, said Francisco Guzmn, chief of staff to President Enrique
Pea Nieto.
This [the relationship with Mexico]

is not a threat but an opportunity . . . The North American region is


the most competitive in the world. That
[relationship] is much more intelligent
than a wall, which, far from boosting
trade, will restrict it, Mr Guzmn said,
referring to Mr Trumps $8bn plan to
barricade the 2,000-mile border.
Officials and diplomats have been
wringing their hands but, until recently,
biting their tongues over the Republican
front-runners vows to deport 11m illegal immigrants, charge Mexico for his
wall and stop companies from relocating production of goods from Ford
cars to Oreo cookies to cheaper factories south of the border.
Two former Mexican presidents,

Vicente Fox and Felipe Caldern, both


warn that Mr Trump is a dangerous
demagogue. Alejandro Hope, security
editor at digital publication El Daily
Post, claims the US-Mexico security
relationship would be set back 20 years
by a Trump presidency, with a
beefed-up border sparking fierce conflict in Mexico for drug routes.
Mexico also fears a Trump presidency
would gridlock the worlds busiest land
border for everything from trade to
medical tourists heading to Tijuana for
cut-price tummy tucks.
If he wins, he could introduce retaliatory measures that wouldnt hurt the
government but would hurt the people,
said Jorge Rivera, 73, a shopkeeper.

Mexico is estimated to be home to


more Americans than anywhere else
outside the US, and with exotic beaches,
a cheap peso, popular food and flowing
beer and tequila, it is Americans top
international holiday destination.
Mr Trump used to like Mexico too: he
put his name on the planned Trump
Ocean Resort Baja Mexico, just south of
San Diego, but the luxury development
went bust in the 2008-09 financial crisis. The businessman says he was not
building the resort himself but had just
licensed his name to it. He settled for an
undisclosed sum in 2013 with more than
100 people who had put down millions
of dollars in deposits on condominiums.
Icy US-Mexican relations and a for-

tress border would not just be bad for


sun-seekers or lovers of guacamole
most avocados in the US are Mexican
and Sara Lee bread, owned by Mexican
brand Bimbo. For big companies such as
Citi, General Electric, American
Express and Procter & Gamble, Mexico
is a flagship market.
However, Mr Trump objects to the US
running a trade deficit with Mexico
$53.4bn last year. Yet fears that the
North American Free Trade Agreement
(Nafta) would lead to the loss of American jobs proved unfounded: some 6m
jobs exist in the US because of trade with
Mexico, which has grown sixfold since
the pact began in 1994 to more than half
a trillion dollars each year.

More than 80 per cent of Mexican


manufactured goods go to the US, but
Mexicos maquiladora, or made-for-export, factories churning out computers,
TVs and other goods rely on imported
US components.
Juan, an elderly shoeshine in Mexico
City who spent four years driving trucks
in Chicago as an illegal immigrant, rails
against Mr Trump. He forgets the US
was built by immigrants, he says.
From the 1940s to the 1960s, the
bracero programme provided Mexican
farmhands, and Luis de la Calle, a
former Nafta negotiator, said Mr
Trumps policy would destroy US farms
since there is no way of US agriculture
working without Mexican labour.

Tuesday 8 March 2016

FINANCIAL TIMES

FINANCIAL TIMES

Tuesday 8 March 2016

INTERNATIONAL
Capital funds

Internet

China outflow data calm forex reserve fears

Pioneering
programmer
who sent first
email dies

Renminbi recovered 0.3%


last month, reducing the
need for intervention
GABRIEL WILDAU BEIJING

Chinas capital outflow eased in February, with analysts saying the smallest
decline in foreign exchange reserves for
eight months will reduce anxiety over
the countrys financial stability.
Central bank data released yesterday
showed reserves fell $29bn last month
to $3.2tn, sharply lower than the $99bn
fall in January and a record $108bn drop
in December.

Expectations of renminbi depreciation and concern about Chinas slowing


economy have fuelled unprecedented
capital outflow since official reserves hit
an all-time high of $3.99tn in June 2014.
As renminbi selling pressure intensified, the central bank has drawn on its
reserves to curb downward pressure on
the exchange rate. But the renminbi
recovered 0.3 per cent in February,
reducing the need for intervention.
The capital flight thesis the notion
that Chinese residents and companies
are desperate to get money out of the
country and will do so regardless of
short-term movements in the exchange
rate is inconsistent with the February

outflow, wrote Michael Parker, head of


Asia Pacific strategy at Sanford Bernstein in Hong Kong, in a note.
Analysts have warned that China may
be forced to scale back its market interventions in support of the renminbi to
prevent reserves being depleted below
safe levels. On Sunday a top central
banker sought to reassure investors that
Chinas official reserves were composed
exclusively of highly liquid assets.
The comments by Yi Gang, deputy
governor of the Peoples Bank of China,
were a response to claims by some bearish investors who believe the central
bank figures include assets such as foreign real estate and private equity,

which cannot easily be deployed in currency markets.


Zhang Yu, economist at Minsheng
Securities in Beijing, estimates that the
Peoples Bank of China spent an average
of $15bn a day in the spot exchange rate
market to support the renminbi in February, down from $50bn per day at the
height of renminbi panic selling following the surprise devaluation of the currency last August. Her estimates are for
gross outflows from reserves and do not
include countervailing inflows from
trade and foreign direct investment.
But Ms Zhang cautioned that outflow
pressure remains, despite encouraging
February data. Part of the decline in

reserves is the result of seasonal factors,


including the lunar new year holiday.
Valuation effects also flattered the
headline reserves figure. The US dollar
fell modestly in February, which boosts
the dollar-denominated value of nondollar assets in Chinas reserve portfolio,
including euros, yen and sterling.
The adjustment of private sector balance sheets still requires expending
more forex reserves, but the ammunition spent on intervention has reduced,
Ms Zhang said. The central bank is trying to spend more judiciously.
Additional reporting by Ma Nan in
Shanghai
Short View page 15

Procurement. Transparency

Private sector joins Xis military crusade


Opening up of army tenders is
part of reforms seeking to save
costs and modernise forces

7.6%
Increase in this
years defence
budget from last
years, the lowest
rise since 2010
and only the
second singledigit increase in
the past two
decades

CHARLES CLOVER BEIJING

As economic slowdown stifles Chinas


defence spending boom, the private sector is joining President Xi Jinpings battle to transform a bloated, inefficient
land army into a streamlined modern
fighting force.
With the military seeking to acquire
more for less, companies have for the
past year been allowed to compete for
selected military equipment tenders.
Dou Fengchun, who runs Taizhou
Huairun Textiles, a textile plant in
Jiangsu province, is among those to have
entered the previously restricted sector.
We had the lowest price, period, and
that is why we won, says Mr Dou, who
won a Rmb114,000 ($17,500) contract
to supply the Beijing Military District
command with professional protective
gear, according to the defence ministrys general armaments department.
While the contract was not huge in business terms, Mr Dou says it has opened
the door to further military work.
He declined to answer detailed questions, however, as few companies
involved in the new open tenders speak
to the media for fear of harming their
chances with the publicity-shy Peoples
Liberation Army.
Military procurement was once the
exclusive, lucrative realm of secretive
state defence groups but since the general armaments department held a pilot
tender for oscilloscopes in December
2014, procurement has become more
transparent, with data published on the
departments website.
So far the department has announced
505 open tenders, which were contested
by both private and state companies. Of
these, prices were only disclosed on 316,
worth an aggregate Rmb762m a drop
in the ocean compared with this years
Rmb954bn defence budget.
But, partly for fiscal reasons, the military plans on more private sector
involvement. This years defence budget
was up just 7.6 per cent on last years
the lowest rise since 2010 and only the
second single-digit increase in the past
two decades.
Hence the focus on cost savings. The
most recent attempt to estimate the
scale was published last April after the
first experimental round of tenders. It

300,000
Reduction in
PLA troop
numbers, from
2.3m, announced
by Xi Jinping in
September

Rmb12m
Amount shaved
off the armys
Rmb90m
purchasing
target after
three months
of the open
tenders
programme

Soldiers take
part in an
exercise in
Bayingol,
Xinjiang, in
January
Reuters

Hong Kong
Territory on course for
Beijing showdown
Hong Kong and Beijing are risking a
showdown as democratic demands
clash with mainland interference, the
territorys lawmakers have warned.
Many Hong Kong citizens accuse
Beijing authorities of violating
guaranteed rights to legal autonomy
and democratic freedoms. Chinas
leaders, meanwhile, warn of the rise of
radical separatists.
The situation is heading for a
bigger showdown, said Michael Tien,
a businessman and Hong Kong
lawmaker who represents the territory
in Chinas rubber-stamp National
Peoples Congress, which is holding
annual meetings this week. Beijing is
convinced that it was too liberal . . .

but the tighter they squeeze Hong


Kong, the more the resistance.
Zhang Dejiang, chairman of the NPC
and top Beijing official responsible for
Hong Kong, met delegates from the
territory on Sunday and raised
concern over violence that followed
protests by localists opposed to
Beijings rule.
He is said to have called on
residents to focus on economic
development, rather than political
issues. But the backlash has
intensified since the detention last
year of five Hong Kong booksellers.
China is trying to prescribe an
economic solution to a political
problem, said Andrew Yao, another
Hong Kong businessman who is part
of the NPC. We need all sides to sit
down, be realistic and negotiate
something that will not cross the
bottom lines of both sides. Ben Bland

showed that in the first three months of


the programme, competitive tenders
helped the army shave Rmb12m off a
Rmb90m purchasing target.
But the reforms are more about better higher-cost performance, and curbing corruption, than about saving nickels and dimes, says Yue Gang, a retired
army colonel. This open system will
give rise to greater transparency to preserve the militarys efficiency and fighting capacity. Its definitely a sign of
progress.
The open tenders are part of reforms
announced in 2013 designed to transform the PLA from a peasant-based land
force into a modern, professional military. A big troop cutback slashing
300,000 off the PLAs 2.3m headcount
was announcedby Mr Xi in September.
The products where the private sector
has the biggest advantage are those
where there is already a fully established market, such as shoes, canned
goods or circuit boards, Mr Yue says.

But high-tech goods are also being


sought privately. For example, Beijing
Ruidaen Technology says it won a multimillion renminbi tender for radar maintenance equipment in December.
The supply chain has even extended
overseas. One private sector group,
which did not want to be named, says it
acted as a distribution agent for foreign
technology companies that might not be
aware they are supplying the PLA.
But despite the opening up, the state is
likely to retain its dominant role in military procurement. Mr Yue says the private sectors role will probably not grow
beyond 20 per cent, and that many
items such as advanced weaponry will
be restricted to state groups.
Its natural for the military to give
them preferential treatment with
orders or subsidies, he says.
They have to bear the burden of the
cost of maintaining production lines for
military products.
Additional reporting by Ma Fangjing

LESLIE HOOK SAN FRANCISCO

Ray Tomlinson, the programmer credited with sending the worlds first modern email and for pioneering the use of
the @ symbol in electronic communications, has died aged 74.
Tomlinson wrote a program in 1971 that
allowed messages to be exchanged
between different computers on the
ArpaNet, the precursor to the internet.
Electronic messages had previously
only been exchanged between people
using the same mainframe machine.
The programmer said the first email
sent was a trivial test message, probably
containing something along the lines of
QWERTYUIOP.
At the time of his invention, Tomlinson was researching possible uses for
the ArpaNet, the US military network
that formed the basis of the internet,
and was particularly interested in

The invention came out


of a personal desire for
a more convenient way
to communicate
improving ArpaNets mailbox function, which allowed users to send messages to numbered mailboxes. Up to
then this had involved someone printing out the message and physically placing it in the mailbox.
To resolve this problem, Tomlinson
wrote a file transfer program that
allowed a message to be delivered electronically to a separate computer
through ArpaNet.
The invention of email came out of a
personal desire for a more convenient
and functional way to communicate,
Tomlinson said in 2012. Basically, I was
looking for a method that did not
require the person to be there when the
message was sent and enabled the
receiver to read and answer communications at their convenience.
Tomlinson also came up with the idea
of using the @ symbol to separate the
name of the recipient from the name of
the host, creating the standard still used
today. In spite of a history of more than
four decades, Tomlinson said email had
not changed much since its invention.
The early uses were not terribly different from the current uses, he wrote
on his personal web page. The exceptions are that there was only plain text in
the messages and there was no spam.
He said part of the inspiration for
email had come from the idea of the telephone message. At the time there was
no really good way to leave messages for
people, he told The Verge magazine in a
2012 interview. Everyone latched on to
the idea that you could leave messages
on the computer.
Born in New York state, Tomlinson
studied electrical engineering at Rensselaer Polytechnic and then earned his
masters degree at Massachusetts Institute of Technology.
He joined Bolt, Beranek and Newman
in 1967 in Massachusetts, and stayed
there for the rest of his life. BBN was
later acquired by Raytheon and known
as Raytheon BBN.
It is with great sadness we acknowledge the passing of our colleague and
friend, Raytheon said. A true technology pioneer . . . his work changed the
way the world communicates.

Far-right resurgence

Slovakias neo-Nazis gain ground on political mainstream


HENRY FOY BRATISLAVA

Marian Kotleba refers to Roma people


as gypsy parasites, reveres a Nazi war
criminal as a national hero and has
advocated a state where minorities are
stripped of their rights. And as of this
weekend, he leads Slovakias fifth-most
popular political party.
In one of the biggest surprises of Saturdays election, more than 200,000 cast
ballots for the neo-Nazi Peoples Party:
Our Slovakia (LSNS) including 23 per
cent of first-time voters.
The people have decided, and this is
the beginning of a new era in Slovakia. I
hope that we will succeed in rescuing
Slovakia from where it is heading, Mr
Kotleba said on Sunday. The government keeps favouring foreign policies
overtheinterestsofSlovak citizens.
Stocky and skin-headed and with a
penchant for dressing up in uniforms
modelled on Slovakias wartime Nazisupporting militia Mr Kotleba borrows rhetoric and symbols from the
countrys fascist past, has flirted with
holocaust denial and called for Muslims
to be banned from the country. His party
manifesto rejects EU membership, sees

Nato and the US as criminal organisations, decries western democracy as a


propagator of dangerous sects and sexual deviations and calls for a national
militiatoprotectethnicSlovaks.
Ignored by the mainstream media
during the election, the 38-year-old was
on the front page of the best-selling SME
newspaper yesterday, the face of a farright resurgence in an EU member state
where suspicion of outside influence
runs deep. His rise to prominence, winning 8 per cent of the national vote and
14 seats in the 150-strong parliament,
mirrors that of the far-right elsewhere
in Europe, such as the neo-Nazi Golden
Dawn party in Greece and Hungarys
radical nationalist Jobbik, both of whom
have national MPs.
In Slovakia, some political analysts
fault the anti-immigrant, anti-Muslim
rhetoric of prime minister Robert Ficos
ruling Smer-SD party during the campaign for creating a narrative that Mr
Kotleba used to his advantage. To some
extent, Mr Ficos spreading of an atmosphere of fear since the summer . . .
clearly helped to create a monster, said
Michal Vasecka, a Slovak sociologist and
professoratMasarykUniversityinBrno.

A former high-school teacher who


was banned from the classroom for his
extremist views, Mr Kotleba entered
politics with the ultranationalist Slovak
Congregation party in 2005. Its manifesto called for non-Slovaks to be
stripped of certain human rights. That
led to a ban by the countrys authorities.
Then in 2013, he tapped into anger at
mainstream parties in a rural and

The government keeps


favouring foreign policies
over the interests of
Slovak citizens
under-developed area of Slovakia to be
elected governor of a region of 650,000.
During that campaign, he was
indicted for hate speech after his manifesto claimed unfair favouring of gypsy
parasites. A local court eventually
rejected the prosecution.
Slovakias economy has nearly doubled in its 11 years of EU membership.
But that has been little consolation to
an underprivileged segment of the
population that feels abandoned by

mainstream politicians and disenfranchisedbythecountrysliberaldemocracy.


Mr Kotleba appeals to them with rhetoric portraying ethnic Slovaks as under
siege from foreign invaders and influences while romanticising the fascist state
of Catholic priest Jozef Tiso from 19391945, which allowed for thousands of
JewstobedeportedtoNazideathcamps.
LSNS has avoided anti-semitic statements in recent years and focused
instead on attacking immigration.
The main reason for the [need] to
establish militias is total failure of the
police to prevent and protect decent
people from vicious antisocial elements, Mr Kotleba said last month.
Every month they fail to stop gypsy
extremists somewhere raping or killing
someone. Police, led by the interior minister, protect thieves and parasites, added Mr Kotleba, who declined to respond
toquestionsfromtheFinancialTimes.
Such statements chime with workingclass Slovaks in deprived areas where
the government has failed to integrate
parts of the countrys more than
100,000-strong Roma community.
LSNS polled strongly in eastern areas
where Roma communities are largest.

Tuesday 8 March 2016

FINANCIAL TIMES

FINANCIAL TIMES

Tuesday 8 March 2016

PARIS FASHION WEEK

Simply does it
Stella McCartney

Herms
Catwalking.com

FASHION

Jo
Ellison
Placing function over the
fanciful, this celebration of
breezy femininity chimed
with the times
Still no official word on whether Stella
McCartney is launching a menswear
label. For AW16, however, her shapes
were womanly and wide: fluid, flared
pyjama trousers, big, quilted urban puffas (quite the trend in Paris), cropped
bomber jackets (ditto), a voluminous
jacquard dress with a fine swan motif.
Its in my language to always have some
kind of animal print in my collection, to
give some respect to the fellow creatures, the designer said of the regal bird
that decorated sweaters and dresses.
The swan felt very British, very bold.
McCartneys show was strong, synthesising many of the characteristics she
has always played with at the house
soft tailoring, easy lines, a focus on
wearability. The parkas were eminently
sensible, her pointed white flats
designed for a woman on the move.
In recent seasons, the prevailing fashion has been for maximal styling and
excess. The arrival of Balenciaga, and a
simpler, spare design will change that.
This AW16 was a reminder that McCartneys sporty, pared-down aesthetic has
always placed function over the fanciful, and this quiet celebration of breezy
femininity chimed with the times.
Known as the go-to designer for the
working woman or at least, I hope I
am, she said backstage lately shes
been more interested in the day-to-

night wardrobe. Hence, this working


wardrobe was punched up with dressier
details: a gorgeous pink dress which fell
to the floor; a long skirt with kiltlike
pleats was coloured in equal parts khaki
and gold; a slouchy slate velvet suit had
sheer tulle shoulders; even the everyday
parkas were neatly nipped at the waist
or finished in luxe-ier fabrics like velvet

or silk. All were worn with a single drop


earring and slicked Marcel Wave hair.
I dont have time to go home and get
dressed up again. I want to add an earring and an eye and go out. I understand
the single earring, but the eye? One
assumes McCartney was talking in fashion-speak singular? No! I mean one eye
open and the other closed, she laughed.

Nadge Vanhee-Cybulskis
elegant line in wafty
luxe sportif whispers
exclusivity
Despite early warnings that events
in Paris and the staggering world
economy would dent the acceleration of growth at Herms, the family-owned company reported a solid
14.5 per cent increase in sales for
the fourth quarter on February 10,
and consolidated fiscal revenues of
4.8bn in 2015, up 18 per cent. They
are the kind of numbers other luxury brands dream of as they battle
currency devaluation and the Asian
consumer conundrum: the brand
posted an 18 per cent increase in
sales in Japan, and a more modest 5
per cent in the rest of Asia.
Its easy to see why Herms is
working. Steered under the leadership of chief executive Axel Dumas
and his cousin and artistic director
Pierre-Alexis Dumas, Herms continues to occupy that rare tier of luxury still
twinned with artisanal authenticity:
people believe in the product. They
invest in it, and sensibly so: according to
a study undertaken in January by Baghunter, the website that trades in highend accessories, the brands Birkin bag,
named for actress Jane Birkin, which
was launched in 1984, has had an average annual return in value of 14.2 per
cent. And thats a lot more than gold,
fashion-haters.
So, too, has Herms ready-to-wear
seen a fillip in growth: 8 per cent, under
the calm, collected eye of its 37-yearold creative director Nadge VanheeCybulski, formerly of The Row. A year
into the job, she has ironed out the
details that wrinkled her first collection
the curious trouser shape, the slightly
Frau jackets to deliver an elegant line
in wafty luxe sportif that simply whispers exclusivity.
This season Vanhee-Cybulski had
worked on the colours and the house
codes. I call them the new neutrals,
she said of her sorbet-shaded palette. I
wanted to frost the colours, by changing
the weave of the cloth which gives it a
slightly different colouration. Her new
colours were kumquat orange, tobacco
and absinthe. They could have seemed
sickly but the tones were toughened
with dark suedes, navy silks and shear-

ling. A black suede coat was covered in


3,500 palladium studs a bit of heft
among all the hues.
The horsey elements one expects at
Herms were here quite hidden: a riding
silk jockey jacket and sweatshirts had
equestrian echoes, but Vanhee-Cybulski is trying to break perceptions of the
traditional riding dress.
Her line was fluid and super-femi-

nine: I can get obsessive about length,


she said of the seven-eighth hemline
that defined most every look, be it the
leather culottes or twillaine cashmere
mohair skirts, and worn with a knee
boot with stacked heel. I wanted an
elongated silhouette. Utterly feminine.
The charm of the Herms wardrobe is
in its inconspicuous elegance: VanheeCybulskis gentle touch works a treat.

Democratic candidate. Altogether the


performance was riveting.
The clothes, when they finally came,
were a little less so. Arguably, such an
enormous build-up could only be met
with a tinge of disappointment. After
last seasons triumphant love-letter to
New York, a lingerie-inspired collection
staged against the sunset over the
Hudson and co-created with his friend
the artist Marina Abramovi, Riccardo
Tiscis AW16 was more straightforward
in its ambitions, though sartorially
quite complex. The 51 looks interwove
military tailoring, snakeskins, leopard
print and ancient Egyptian motifs in a
melange of chiffon prints, bomber
jackets and officers Great coats in light
black wool with crimson accents.
It was a mix of psychedelic music

and Egyptian, explained the designer


backstage, with uncustomary brevity.
Egypt because it was the beginning of
everything. And fur, snake and leopard
because Im obsessed with animals. I
used the military details for the gold
and the decoration.
The coats were certainly the strongest
part of the collection, all hung under the
watchful eye of Ra. Patchwork python
bombers and admiral coats were svelte
and purposeful; the best were overlayered with gentle quilted jackets that
had arts-and-crafts-like prints. They
were worn with flattering mannish
black trousers and tight cropped wigs
that covered the head like skull caps.
Backstage, Cooper shook Tiscis hand
in a manly display of fraternal
appreciation. He thought it was great.

Givenchy
Bradley Cooper, Kanye
West, Anna Wintour . . .
the front row provided the
real theatre at Givenchy
We waited 50 minutes for Kanye West
to take his seat at Givenchy, at a show
that lasted about 15. Perhaps he lost his
way; the set was a labyrinthine maze of
corridors, each one screening off the
next so that the seating felt like a
London Underground carriage at rushhour standing-room for models only.
Thankfully the wait provided
excellent material; a first, second and
third act before the grand finale. I was
seated opposite actor Bradley Cooper,
US Vogue editor Anna Wintour and
Wendi Deng, who had presumably
chosen to divert her attention from the
publicity surrounding her ex-husbands
weekend nuptials to the model Jerry
Hall by watching lots of fashion shows.
Wintour, Cooper and Deng were joined
on their bench by Gabriel-Kane DayLewis, a musician who does a bit of
modelling to make money (and the
son of Oscar-winning scenery-eater
Daniel and actress Isabelle Adjani), and
Andrew Bolton, the new curator in
charge at the Costume Institute at New
Yorks Metropolitan Museum, and
co-host with Wintour of Mays Met Ball.
They made a compelling portrait of
the modern creative power player,
though no pictures were in fact allowed.
Cooper wasnt doing press, and a burly
minder ushered away incoming lens
interest with a glower. Unlike West,
they were also punctual: Wintour is an
impeccably timely attendee at the
shows, and often the first to be seated.
They spoke about London theatre,
from whence Cooper has lately finished a
semi-acclaimed run in The Elephant Man.
Wintour was enthusiastic about Ralph
Fiennes majesty in The Master Builder
and Martin McDonaghs play, Hangmen.
They discussed Nancy Reagan, whose
death had just been reported, and how
sad she must have been to see the
quagmire of Republican debate.
Wintour is a fully subscribed supporter
of Team Hillary, and has negotiated the
season alongside fundraisers for the

Tuesday 8 March 2016

FINANCIAL TIMES

FT BIG READ. US EXCHANGES


IEX, the start-up trading venue made famous in Flash Boys, is seeking to become an exchange and take on
the NYSE and Nasdaq. In the process, it has prompted debate over fairness in the US equity markets.
By Nicole Bullock and Philip Stafford

ar has broken out in the


US stock market. On
one side is the establishment, led by the New
York Stock Exchange
and Nasdaq. On the other is IEX, an
upstart trading venue with a tiny sliver
of the business but outsized ambitions
to disrupt the worlds largest equity
market by becoming an exchange itself.
In the middle is the Securities and
Exchange Commission, which is weighing whether to grant IEX equal footing
with NYSE, Nasdaq and other
exchanges, with a decision due as soon
as March 21. Beyond the question of
whether to change the architecture of
the US equity market, the SEC has found
itself caught up in a fractious public
debate over what would normally be a
wonky process of little interest outside
the industry.
One reason for the public attention is
that IEX has successfully framed its
quest as a matter central to the fundamental fairness of the US markets.
The SECs stated mission is to protect
investors, maintain fair, orderly, and
efficient markets. But with its push to
be an exchange, IEX is asking: whose
interests does the system really protect?
The IEX application is a referendum
on modern US markets, says Sal
Arnuk, principal at Themis Trading and
a supporter of the company.
Founded in 2012, IEX has enjoyed
publicity that most start-ups could only
dream of. Michael Lewis, one of the foremost chroniclers of finance and markets, made the New York company the

The market was overly


complex too many dark
pools and exchanges. The
system has failed to fully
protect long-term investors
centrepiece of his latest book, Flash
Boys: A Wall Street Revolt. In it, Mr Lewis
chronicles IEXs efforts to upend what it
perceived as an unfair equity market
where high-frequency traders exploit
inefficiencies in a highly fragmented
market.
That fragmentation was enshrined in
2007 when the SEC revamped the market, with a piece of legislation known as
Regulation National Market System, or
RegNMS. With the new rules, the SEC
sought to modernise the stock market
by encouraging the creation of new electronic trading venues to increase competition and keep prices low.
The result was an explosion of electronic trading venues, with dozens of
new groups entering the business.
When IEX began trading six years
later, some investors faith in this new
system had been rattled by the flash
crash and a sense that lightning-speed
trading had distorted the market.
IEX had a simple proposal: find a way
to halt the industrys arms race in which
high-speed traders continually assess
every step in a trade to shave off microseconds. That, it says, could be achieved
by what it calls a magic shoe box
forcing the trading data to take a detour
through 38 miles of coiled-up fibre optic
cable to produce a 350-microsecond
delay. The delay, equivalent to one onethousandth of the time it takes to blink
an eye, would ensure that all investors
would be treated fairly, it says.

Not about speed


IEX claims this set-up would also halt
the lucrative business that middlemen
including exchanges such as Nasdaq
and NYSE have created from selling
ultra-fast connections to high-frequency traders.
We have long thought that the market was overly complex too many
dark pools and too many exchanges,
and too hard to express trading interest, argues Andrew Brooks, head of US
equity trading at T Rowe Price. In some
ways the market system has failed to
fully protect the interests of long-term
investors. IEX is about innovation and
speed or thwarting speed pushing
back against a myopic view of speed. If
you have a two to three-year [investment] horizon, which we do, it is not
about speed. It is about price.
High-speed trading has grown in the
past decade to account for about half of
daily market volumes in the US,
although down from its peak when IEX
started. Consultants estimate that this
cottage industry made billions from the
market volatility of 2008-09.
Mr Lewis added to the controversy
over high-speed trading when he
launched Flash Boys and announced
that the markets were rigged.
The Book, as it became known, set
off a furious industry clash over
whether it fairly portrayed the way US
markets worked. Coincidence or not, US
regulators began levying ever-rising
fines on banks and market operators for

The speed bump battle


Seeking
approval: Brad
Katsuyama,
chief executive
officer, is
leading efforts
to have IEX
accepted as an
exchange Chris

falling foul of rules related to the way


high-speed traders interacted with
investors on their trading venues.
Amid the controversy Mr Lewiss
book sales rose and IEX grew increasingly confident. It raised $75m in funds
and crafted an application to become a
fully regulated exchange. Its backers
included powerful hedge funds like Bill
Ackmans Pershing Square Capital and
Dan Loebs Third Point, as well as venture capitalists and the casino mogul
Steve Wynn.
Approval would allow IEX to boost its
market share, as brokers will be forced
to send it trades when it offers the best
price.
The IEX application was lodged last
September, unleashing a wave of
debate. Think of this as Reg NMS
round 2. In particular how far does the
SEC want to go in locking down market
technology? says James Angel, a professor at Georgetown University.
The SEC has received hundreds of
comment letters, with the overwhelm-

Goodney/Bloomberg

ing majority backing IEX. A rebuke of


the IEX application would be a step
backwards for the publics trust of the
market, said a typical comment.
Dozens of retail investors support the
application along with Mr Lewis, congressmen, many large institutional
investors and academics. Critics include
the exchanges such as NYSE and Nasdaq
as well as Citadel, a hedge fund, market
maker and high-frequency trader.
Some market participants are
aggrieved that IEX has been presented
as the good guy in this fight. Some highfrequency traders privately accuse IEX
of trying to game the market but are
afraid to criticise it for fear of drawing
attention. Exchange bosses are equally
annoyed at their portrayal. It [IEX]
tries to intimidate anyone who criticises it as the bad guy, says an executive who declined to be identified.
Critics argue that IEXs application
runs counter to the SECs own rules.
First, exchanges are required to send
bid and offer information into the

market as soon as is practically possible.


Second, they say, IEXs model would
contradict an obscure part of Reg NMS
known as Rule 611.
That regulation is intended to ensure
that the prices ordinary investors see on
their trading screens are legitimate and
represent the most competitive price.
Deliberately introducing a delay on
pricing of 700 microseconds would violate that.
If IEX is allowed to become an
exchange, when you see its price, you
wont be sure if that is still the real price
or if it has become stale, says Jamil
Nazarali head of execution services at
Citadel. Putting in a speed bump
doesnt do anything. The fastest party
still gets the trade.
In a broadside last month, Jeffrey
Sprecher, chief executive of NYSEs parent company Intercontinental
Exchange, said IEX was effectively seeking monopoly status. It is un-American
and its not fair and not the way that our
system should work, he said.

A painstaking process

The magic shoebox


Speed merchants targeted
by coils of cable
Most share deals no longer take place
on a trading floor or even a computer
screen sitting in an exchange. The
closest physical approximation to the
floor is a rack of servers housed within
high-security data centres, often miles
away from corporate headquarters. In
the US the New York Stock Exchange,
Nasdaq and Bats Global Markets each
operate out of different data centres
all based in New Jersey.
IEX says its mission is to level the
playing field by slowing down highspeed traders that, it claims, gain an
advantage by placing their own

servers close to the exchanges. That way,


some fast traders learn about deals
before unwitting investors.
To blunt that edge, IEX has developed
its so-called magic shoebox 38 miles
of fibre-optic cable coiled into a small
box, designed to iron out the
inefficiencies in share trading created by
both geography and physics.
The system has a built-in delay of 350
microseconds a thousand times faster
than the blink of an eye on trades
arriving and leaving its venue. It
estimates that timeframe is enough to
harmonise the speed on trading
information for customers that pay to be
near the servers of its rivals. IEX also
argues that competitors like NYSE and
Nasdaq have practices that are
tantamount to a speed bump by other

means, a charge they reject.


Critics argue that deliberately
slowing the dissemination of
information jeopardises the validity of
prices in the market. It also runs
contrary to rules that call for official
quotes to be immediate, they say.
The other flashpoint in IEXs filing is
its router, a software program that
sends trades to other exchanges when
it cannot fulfil an entire order inhouse. Initially, IEX did not want its
router to be subject to the speed
bump but after feedback during the
consultation period it has since
changed its position.
Any outgoing orders executed on its
market will now use the speed bump,
in the hope of hastening its approval
as an exchange.

Trading places
Market share by venue (% of total US volume)
Bats BYX/Bats
Off exchange trading
Other exchanges
NYSE ARCA
NYSE
NasdaqBX
Nasdaq
DirectEdgeX/DirectEdge A

US volume (average daily shares, bn)

100

10

HFT
Passive funds
Active funds

80

60

40
2

20

0
2003 2005

2007

2009

2011

FT graphic Sources: Credit Suisse Trading Strategy

2013

2015

1996 98 2000 02

04

06

08

10

12

14 15

The rise of IEX also threatens another


part of the incumbent exchanges business: sales of data and connections to
their venues. Exchanges are entitled to a
share of fees from a record of all US
share trading, while investors also need
to connect their computers to the platform. They accounted for 7 per cent of
total revenues at Bats, the USs third
main stock exchange.
IEX claims that while technology
costs keep falling, fees levied by incumbent exchanges on brokers and market
makers continue to rise. It says data and
technology should be provided at a reasonable cost or none at all, to institutionalise fairness for the greatest
number of market participants.
Others say it is IEXs business that is
flawed otherwise more people would
use it. Bats, owned by a consortium of
banks and traders, carved out a 10 per
cent market share before it applied for
an exchange licence. IEXs detractors
argue that sending trades through IEX
has another motive: it is three times as
expensive as other venues and it needs
to justify a return for its big investors.
It took Nasdaq, which set out in 1971
to disrupt the old system of floor trading, about five years to succeed with its
exchange application. It is generally a
slow, painstaking process and many
upstarts never make it through, Mr
Angel says. When the SEC grants an
exchange licence, they are putting their
reputation on the line. They dont want
something at a new exchange to blow up
and embarrass them.
Both sides have accused each other of

employing aggressive tactics. While


accusing everyone of lobbying against
them, it is IEXs owners who are aggressively lobbying DC, says one observer.
Some say it is hardly a coincidence
that the IEX application is being heard
during an election year. Attacks on Wall
Street have been a feature of Democratic party debates, and there have
been proposals to tax high-frequency
trading. IEX supporters say they are up
against a system keen not only to protect the status quo but one that would
have to admit its past mistakes, raising
the stakes for the SEC.
Politics may also play another part.
There are two unfilled seats on the fiveperson panel, and its composition may
be shaken up after the election.
The SEC is scheduled to decide
whether to approve IEXs application
within the next fortnight, though it has
already extended the deadline once.
IEX has been defiant about changes to
its structure. We want to be approved,
obviously, but not with compromises
that limit our ability to protect investors rights to the end, says Brad Katsuyama, IEXs chief executive.
IEX has made one significant change
to accommodate concerns raised during
the consultation. It altered a piece of its
technology so that all outgoing orders
will be sent over its speed bump, but
argues the structure still protects investors. It is unclear whether this will be
enough to satisfy the US regulator.
IEX is clearly hoping to capitalise on
its momentum before the public interest begins to wane, putting the SEC on
the spot.
I think it will be political suicide for
them to oppose it but they need to save
face, says Spencer Mindlin, an analyst
at Aite Group, a financial markets consultancy. [The SEC] has gone through
criticism of unintended consequences
and now they are on the defensive. If
they go against a market-based solution,
that, politely, is going to be unsavoury.

Deciding vote The SEC will decide


whether to grant IEX equal footing
with NYSE and other exchanges
Activist backing The IEX application
has support from activist investors
including Bill Ackman and Dan Loeb
Market moves High-speed trading has
grown in the past decade to account
for about half of daily market volumes

10

FINANCIAL TIMES

Tuesday 8 March 2016

Letters
Time has come to push back against the state

TUESDAY 8 MARCH 2016

ECBs greatest risk is the


danger of doing nothing
The eurozone needs to be given further monetary stimulus this week
Ahead of the European Central Banks
governing council meeting later this
week, the single currencys bankers are
buffeted by even stronger pressures
than usual from all sides. They
should heed those calling for stronger
action over those advocating restraint.
The case for more forceful monetary
stimulus builds on the many deflationary signals that have accumulated
since the start of the year: market turmoil; unexpectedly sharp disappointments in current and forecast inflation;
and a global slowdown where US weakness has put the brakes on what last
year looked like a promising acceleration in Europe.
On the other side are warnings that
the ECB may achieve the opposite of
what it wishes if it goes deeper into
uncharted monetary territory. Many
think the asset purchase programme
launched in January 2015 is buying
ever less stimulus bang for each quantitative easing buck.
Others warn that a lopsided use of
monetary policy stimulus is tantamount to engaging in a currency war,
surreptitiously targeting a lower
exchange rate to steal demand from
other countries.
The fiercest resistance has been
reserved for negative interest rates, a
policy now used to a lesser or greater
extent by central banks covering a
quarter of the world economy, including most of Europe.
One pushback comes courtesy of the
Bank of International Settlements. In
research released just days ahead of the
ECB decision, the so-called central
bankers central bank has suggested
that interest rate cuts may no longer
stimulate the real economy once they
cross zero. The BIS fears banks will not
pass on lower central bank rates to borrowers, and perversely will tighten
their lending as their profitability suffers. Meanwhile, some banks are

reportedly planning to hoard physical


cash to circumvent the ECBs negative
rate on reserve deposits, thus blunting
the transmission of the policy to households and businesses.
Many of the ECB top brass have
pushed back against these naysayers,
laying the ground for loosening eurozone monetary policy further this
Thursday. They should not now get
cold feet; nor should the rest of the governing council weaken them with
merely lukewarm support (or worse).
Markets are pricing in a further cut
in the deposit rate, and analysts foresee
expanded asset purchases and new
long-term loans to banks. The ECB
should not now disappoint their expectations. Not because it is a central
banks job to please the markets, but
because the fall in market rates prove
that the market policy transmission is
alive and well. More aggressive loosening will ultimately force banks to follow
where markets have already gone.
The euros central bankers need not
fear accusations of warmongering.
There is no evidence that the eurozone
has stolen demand from anyone: its
external balance has barely budged
since the end of 2014. Instead, the
expectation of QE coincided with the
end of the eurozones credit crunch two
years ago, and its implementation with
the pick-up in lending growth in 2015.
If growth and inflation are not responding as much as one would like, the conclusion should be to do more of the
same, not less.
In his most pointed refutation of his
critics, Mr Draghi said in a speech early
this year that they warn us about the
side-effects and risks of what were
doing. But what I never hear them discuss is the risks of doing nothing.
Not only are the risks of inaction
greater than the risks of action, but that
balance has also continued to tilt in
favour of doing more.

A blow to Britains plan


for nuclear renaissance
A shock resignation makes it harder to defend Hinkley Point project
In the decade since Britain first outlined plans for a new generation of
nuclear power stations, the obstacles to
realising this renaissance have
become ever more apparent. One strategic investor after another has walked
away from the Hinkley Point project,
intended to be the first of eight new
reactors. Each time, the government
has pressed on. Now even EDF, the
French utility leading the project, is
split over the risks it entails: Thomas
Piquemal, its finance director, has quit
on concern that it jeopardises the
groups financial future.
The stakes are high both for the British government and for the French
state, which owns 85 per cent of EDF. It
is only a few days since David Cameron
and Franois Hollande renewed their
commitment to a major strategic
project, but it is not merely a matter of
political capital. Delaying or scrapping
Hinkley Point, which is intended to
contribute 7 per cent of Britains electricity from 2025, would leave a hole in
the UKs energy strategy. There are
other ways to close the gap in supply,
but without renewing ageing nuclear
capacity, it becomes difficult to meet
commitments to cut carbon emissions.
For Paris, it is imperative to prove
that the so-called EPR reactor technology to be built at Hinkley Point is viable, after endless problems with reactors under construction in Finland and
at Flamanville in northern France.
Export orders are important for the
French nuclear industry to sustain its
expertise, as the time comes when it
will have to replace the countrys own
fleet of reactors.
Moreover, if EDF can bring Hinkley
Point into operation, it could be
extremely profitable at a time when the
group faces increasing competition in
its home market.
However, none of these strategic considerations makes the project a good

deal for British taxpayers or for EDFs


private sector shareholders.
The cost of the project has escalated,
with the UK guaranteeing a price of
92.50 per MWh more than double
the current price in wholesale markets
for 35 years. The technology is in
serious doubt, with French regulators
set to publish a report on problems
encountered at Flamanville later this
year. And EDFs finances look increasingly fragile after it was forced to
absorb part of Arevas troubled business and to take a bigger stake in Hinkley Point than it had intended.
EDFs response to these concerns,
and that of the governments backing
the projects, has essentially been:
Trust us. But it is no longer enough
simply to assert confidence in the
projects merits. It is time for both EDF
and the British government to face up
to the difficulties besetting Hinkley
Point and to outline alternatives.
For EDF, the best option may be to
wait until it can prove the technology
works and attract other partners. If it
can pull off the deal without blowing a
hole in its finances, the long-term pay
off would indeed be generous.
That is precisely why the UK government should be looking at options.
True, it may be difficult to back away
from Hinkley Point; although no contract has been signed, EDF has spent
some 2bn so far. However, London
could expedite other nuclear projects
in Wales and Cumbria, using different
technology. Ministers have hinted they
will opt for smaller, simpler reactors in
future. Any new initiatives must be
subjected to a rigorous, competitive
process that would allow the UK to
meet its energy needs and climate targets in the most cost-effective way.
Mr Piquemals resignation makes it
ever harder to defend a deal whose
flaws have become increasingly apparent. It is time to move on.

Sir, For once, I couldnt disagree more


with Philip Stephens (Silicon Valley
should step out of the cloud, March 4).
He is wrong to imply that it is never
right to defy our democratically elected
rulers. Hitler and his coalition were
democratically elected and proceeded
to transform the republic into a
totalitarian and autocratic state.
Neither do we trust law enforcement
bodies or courts to draw the line
impartially to protect our privacy
against the will of governments that
appoint them. The state is always
looking for more powers of
surveillance and control, to protect
us.
Were we governed by wise,
benevolent disinterested rulers
primarily caring about the welfare of
their people, we might give them the
benefit of the doubt as to how to
balance security and privacy.
Unfortunately, in a world where trust
between the government and voters
has taken several hits from dodgy

dossiers, errors of judgment, scandals,


the influence of powerful lobbying
interests and election campaign
donors, democratically elected bodies
are simply not what they used to be.
How on earth can we leave it up to our
elected representatives and their senior
advisers to make the right long-term
call on our fundamental rights when
some of them may be considering their
post public service lucrative deals or
employment, in some cases with the
very companies that might have
benefited from laws enacted under
their watch? As for Apples possible
conflict of interest in resisting the
governments hacking of its phones
because this stance is a powerful
marketing tool, if that is true, then it
suggests that the majority of the
overwhelmingly non-terrorist part of
the population wants and values this
feature.
No, enough is enough, it is time to
push back. Ever since 9/11,
governments and the security services

Privacy for Apple is


nothing more than
a marketable service

Abuse Act of 1986 inaugurated


notorious mandatory minimum
sentences for illegal drug offenders
(even non-violent offenders), an
acknowledged hallmark of the failed
War on Drugs. In hindsight we know it
also accelerated the worlds highest
rates of incarceration particularly
among young black inner-city youth,
underpinning present-day racial
tensions.
Even while Mrs Reagan was ardently
advocating for Americas kids to resist
drugs, opposing forces were at work.
The Iran-Contra affair revealed the
administrations concurrent support
for rightwing groups in Nicaragua well
known to be funding their operations
through the illicit drug trade, much of
which ended up on Americas streets.
The ensuing political crisis brought
about the single largest drop in
approval ratings of any US president in
history from 67 per cent to 46 per cent,
although it later rebounded. This
significant campaign deserves a
mention if only as a reminder that
overly simplistic slogans can betray
much more complex and long-lasting
impacts on society.
Eric Stryson
Managing Director,
Global Institute For Tomorrow,
Taikoo, Hong Kong

Sir, Philip Stephens comments on the


Apple v FBI debate over privacy are
timely and to the point (Silicon Valley
should step out of the cloud, March 4).
For all Apples maudlin efforts to
establish itself as a privacy paladin,
it is worthwhile always to bear in mind
that privacy for Apple is nothing more
than a marketable service. We are
talking, after all, about a company that
seeks to photograph every single
purchaser of its computers, which
makes its claim to revere privacy per se
rather dubious.
CA Hoffman
Baltimore, MD, US

What was the point of


your private jet expos?
Sir, Your detailed analysis of private
jet travel for personal reasons by S&P
500 executives in the US has revealed
an estimated annual cost of $40m
(The corporate jet files, March 7).
This amounts to approximately 0.0036
per cent of sales for the companies in
the index or 100 per cent of the sales
generated by 46 of the 24.5m people
employed by the same companies.
Investors are free to sell their shares
if they disapprove of any companys
travel policies.
Was the FTs front-page expos,
Diller leads US rankings for personal
corporate jet spend with $4,500 a day,
supposed to make any other point?
Alessandro Ciravegna
New College Capital,
London SW1, UK

First Ladys big initiative


was Just Say No campaign
Sir, Curiously, your obituary of Nancy
Reagan (Influential First Lady who
always had the presidents ear, March
7) made no mention of her Just Say
No campaign, undoubtedly her major
personal initiative during President
Ronald Reagans two terms in office
and one of the most frequently cited
and modified slogans in modern
popular culture. Although surely wellintentioned the associated Anti-Drug

A lament for
Indias
accidental
bookseller
New Delhi
Notebook
by Victor Mallet

President Trump will find


it hard to match Augustus
Sir, The unexpected political
ascendance of Donald Trump has so
jolted the Fourth Estate and so
disrupted the 2016 US presidential
narrative that pundits have lost their
sense of history. But in equating the
vulgar American billionaire with
Caesar Augustus, Martin Wolf errs
egregiously (How great republics
meet their end, March 2).
After the assassination of Julius
Caesar in 44BC and the young
Octavians defeat of Mark Antony at
the Battle of Actium (31BC), Romes
first emperor who would henceforth
be called Augustus ushered in an
unparalleled period of efficient,
prosperous and inspired leadership
known as the Augustan Reformation.
In addition to establishing both a police
force of 3,000 men and a corps of
professional firefighters, he appointed

The first shop I entered after landing


in Delhi four years ago sold books. It
turned out to be no ordinary store.
BahriSons in Khan Market is tiny
and always packed. I was soon talking
to a manager and a very large and
erudite Argentine ambassador as we
tried to flatten ourselves against piles
of political biographies to let
customers reach the till.
I do not recall what we discussed
except that the manager, having
established my job with the Financial
Times, told me my precise home
address. I had flown in that day from
Europe and checked into a hotel, and
was yet to see the house myself. So I
was taken aback to be identified in a
metropolis of 25m until the
manager told me about the frequent
deliveries made to my predecessors.
The eponymous Bahri Sons or
BahriSons (so called even though
there is only one son) is a Delhi
institution. It was founded more than
six decades ago by Balraj Bahri
Malhotra, who died last week at the
age of 87 from the consequences of an
infected rat bite to his finger.
The 1947 partition of India at
independence from the British sent
millions of Hindus and Muslims
fleeing from their homes into the two
nations that are now India and
Pakistan. Among them was the 19year-old Bahri and his family, who
abandoned their small town near
Lahore and washed up in Delhis vast
Kingsway Camp for refugees.
Bahri, who had studied maths in
Rawalpindi, had no inkling that he

have colluded to encroach on our


privacy by waving the security and
terrorism red flags. Yet the right to
privacy is of great value, and in this
case, the hard evidence demonstrating
how much more security we would
gain by allowing governments to
unlock our phones is lacking, so the
argument is purely speculative. The
great irony is that we are responding to
terrorist threats by continuously
eroding the civil liberties and freedom
from the sovereign that we fought so
hard to establish and defend over
centuries, and that terrorists treat with
such contempt. By doing so, we are
gradually destroying our fundamental
culture and becoming more like them,
so they will have won. Each step that
we travel away from privacy and
freedom may appear small on its own,
but the big danger is that we sleepwalk
into a totalitarian state before we
realise it.
Stephen Saint-Leger
London W4, UK

Getting past the naval blockade was


harder than I thought
boards of commissioners to safeguard
public buildings, the water supply and
the maintenance of the roads.
Moreover, Rome boasted 856 public
baths, 150 tradesmens guilds, a
network of paved roads, domed
basilicas (for town-hall meetings) and
11 aqueducts.
Augustuss Principate preserved
Romes constitutional framework while
giving the Emperor a free hand to end
decades of civil strife, create an
imperial civil service and institute
across the board reforms. His astute
stewardship paved the way for the Pax
Romana, providing the world with
200 years of peace, economic
prosperity and individual and political
freedom all undergirded by the rule
of law.
The philosopher and mathematician
Alfred North Whitehead declared: I
know of only two occasions when the
people in power did what needed to be
done about as well as you can imagine
its being possible. The first period was
Rome under Caesar Augustus; the
other, the American Revolutionary era.
Should Donald Trump ever attain
the White House, the erstwhile host of
The Apprentice would be hard
pressed to match the Augustan brand.
Rosario A Iaconis
Chairman,
The Italic Institute of America,
Mineola, NY, US

would ever be a bookseller. His son,


Anuj, who still perches each day at his
desk on a kind of book-lined balcony
inside the Khan Market shop, said the
newly arrived Bahri gave occasional
maths lessons to make ends meet.
According to Anujs daughter,
Aanchal Malhotra who works at the
familys literary agency, Red Ink her
grandfather sold seats on trains and
delivered items by bullock cart. In
1953 he was selling pens in old Delhi
when he had a chance to acquire one
of the shops being allocated to
refugees in the new Khan Market.
But what to sell in the shop (other
than fountain pens)? Bahri turned to a
friend who owned the Lakshmi
Bookstore in Janpath, an avenue in
New Delhi, and advised him to fill the
shelves with books. Bahri knew little
about them but noted what people
wanted and rushed off at lunchtime to
obtain the titles from his mentor.
Two effects of the process linger.
BahriSons still closes every day,
infuriatingly, for lunch. It is surely the
only shop to do so in what has become
a shambolic but upmarket shopping
centre for the Delhi elite, reputed to
be among the worlds costliest retail
space per square foot. Second, the
shops owners still pay close attention
to what their customers ask for.
Anuj Bahri calls the store a curated
collection specialising in non-fiction.
BahriSons is where diplomats,
politicians and journalists go to buy
the latest volume of cultural history or
self-serving political revelations. Such
books in India are many and of

Email: letters.editor@ft.com or
Fax: +44 (0) 20 7873 5938
Include daytime telephone number and full address
Corrections: corrections@ft.com

Methane: the focus on


fracking is a distraction
Sir, Robin Russell-Jones (Letters,
March 4) argues that fugitive emissions
of methane from gas production
remove the global warming advantage
of natural gas over coal. Recent
published studies and our own
measurements suggest a more nuanced
view. Methane leaks from gas
production are typically over 1 per
cent, as Dr Russell-Jones states, but
coal mining also emits methane. Our
own work measuring carbon isotopes
in methane in air from China in winter
suggests coal is an important
contributor to East Asian methane.
Turning to shale gas, Dr RussellJones suggests methane losses average
8 per cent of production, with an upper
limit of 13 per cent. This contrasts with
the meticulous work of the US National
Oceans and Atmospheric
Administration (NOAA) and the US
Environmental Defense Fund. In Utahs
small Uintah basin, high leakage was
indeed measured, but in the major
Barnett Shale basin in Texas, methane
emissions attributed to fossil sources
were 1.3-1.9 per cent of production.
Gas-fired electricity in this region
would cause less climate forcing than
coal-fired. A few high emitters, for
example in storage and collection
systems, have a disproportionate
impact. Our own work in the UK and
Australia similarly shows the
importance of high emitters, that our
mobile vehicle-mounted analyser
easily pinpoints. These sites
presumably represent financial loss
and safety risks, and should relatively
easily be controlled.
The focus on fracking distracts
attention from the remarkable global
methane rise since 2007, exceptionally
strong in 2014 and 2015, which seems
mainly to be from tropical sources. The
rise has been accompanied by a carbon
isotopic shift that suggests the increase
is not primarily from fossil fuels but
from tropical wetlands responding to
meteorological events. Is this the result
of a large but normal decadal-scale
weather oscillation, or is methane the
canary that warns a profound tropical
change is occurring? We simply do not
know. Tracking tropical emissions
depends on a very few remote marine
sites. Satellite data are not accurate
enough, nor can they use isotopes to
identify sources. Our instrument on
Ascension Island has recently failed,
and is so old that the manufacturer is
soon withdrawing service support.
Ascensions air integrates a wide tract
of the Southern Hemisphere: for want
of 5,000 we risk losing the 2016
record of methane and CO2 during the
current great El Nio. Many of our
international partners in greenhouse
gas measurement are suffering similar
budget challenges. This illustrates a
wider point: the greenhouse debate is
like an inverted pyramid, with a vast
top layer of opinion interpreting
underlying computer models, that in
turn depend on a tiny basis of direct in
situ greenhouse gas measurement.
Dr Euan G Nisbet
Royal Holloway,
University of London, UK

Correction
c Durham University Business School
is ranked fourth in the FTs 2016
ranking of online MBAs and not third
as incorrectly stated in an article on
March 7.

variable quality (the title of a recent


ministerial memoir, One Life is Not
Enough, had me thinking: Its quite
enough, thank you.).
But if it is a book and available
somewhere in India, BahriSons will
probably find it for you. The only time
they failed me was when I was hunting
for an obscure fictionalised biography
of Frederick Wilson, a 19th century
British deserter who established a
timber empire in the foothills of the
Himalayas. I finally tracked it down at
the Cambridge Book Depot at the hill
station of Mussoorie.
Anuj Bahri says BahriSons pushes
large quantities of books through its
three small shops by judicious use of
its warehouses: We have a really big
back end so we transfer stocks four
times a day. He also points out that
home delivery is not something
invented by Amazon. Weve been
delivering books to your door for the
past 40 years without charge.
With physical book sales apparently
as robust as ever at BahriSons, as
elsewhere in India, the next
generation is ready to continue the
tradition established by the
unexpected bookseller from a Punjabi
town in present-day Pakistan. The
relationship between the bookseller
and the client, the reader, is really
sacred, says Aanchal Malhotra.
Computers cant beat that. You feel
like youre wanted in the store. As
one of their best customers, I can only
agree.
victor.mallet@ft.com

Tuesday 8 March 2016

11

FINANCIAL TIMES

Comment
Passion is a vote-killer and gives people the creeps
POLITICS

Janan
Ganesh

rofessional footballers who


hound referees after every
decision against them do not
believe he will change his
mind. They want to influence
his subsequent decisions. This strategic
airing of grievances is a sly feature of
elite sport. But it is a feature. It counts as
a skill. The grandest clubs work on it as
they work on their eye of a needle passing movements.
To be generous to those campaigning
for Britains secession from the EU,
maybe they are engaged in a political
version of this gamesmanship. When
they allege a brusquely partisan interview of Boris Johnson, the London
mayor whose case for Brexit turned to
smoke under interrogation on Sunday
morning television, they hope broad-

casters will soften their scrutiny of


them. When they seethe at the British
Chambers of Commerce for forcing out
its Eurosceptic leader, John Longworth,
it is to cow other pro-EU bodies. Their
resentment of Project Fear, their loose
talk of dirty tricks by Downing Street,
their decision to comport themselves
like smacked children in a restaurant: it
all serves an end.
This, to repeat, is the kind interpretation. There is another. The 41 years
since Britains last referendum on
Europe was not enough time to prepare
for this one. The serenity that comes
from knowing your argument back to
front before the stress test of a campaign
is missing. The foot-stamping of recent
weeks is not tactical but suggestive of an
authentic brittleness that voters will
punish when they start paying attention
nearer the referendum on June 23.
So what have Eurosceptics been doing
all these years, if not preparing? Leavers
and Scottish nationalists deny any likeness, but the parallels between the two
movements increasingly insist on being
noticed. Both sides spent so much time
and energy securing a referendum that

none was left over to hone their arguments when it came. They bonded
among themselves during those years in
a way that cloaked material disagreements on basic questions of detail. And
they are so sure of the rightness and historic inevitability of their missions that
practical quibbles seem tawdry and
beside the point to them a vice that
mars the work of European federalists

Some Brexiteers rage


against the media, business
and the government with
conspiratorial certainty
too, and designers of the single currency
especially.
At least Scottish nationalists had the
excuse of the euro crisis, which stole
their best answer as to which currency
their putative state would use. No external shocks have discombobulated Leavers in the same way. Their complacency
and irreconcilable world views are
responsible for the failure to even agree

whether Brexit should denote total liberation from the EU and its acquis communautaire if such a thing is attainable or continued membership of the
single market. This mush cannot survive the white heat of a referendum
campaign, and does not deserve to.
In politics, believing in something
intensely can be the worst way of getting
it done. Passion can motivate hard work
on matters of detail, but it can also serve
as a giddy distraction from it. This is
how a politician as shrewd as Alex Salmond came undone by the referendum
on independence two years ago. Scotlands former first minister was not
stumped by elementary questions of
currency and finance despite his lifelong immersion in the nationalist cause,
but because of it. The backslapping
company of fervently like-minded people is a poor environment in which to
learn the science of persuasion.
Passion also gives voters the creeps.
Many Leavers are house-trained and
equable. Others rage against the media,
business and government with the conspiratorial certainty of Montana survivalists. One MP has tabled a formal free-

dom of information request to find out


whether Mr Longworth succumbed to
pressure from Downing Street. You halfexpect a rant against chemtrails and
water-fluoridation next week.
At best this exhibitionist paranoia will
mobilise Eurosceptics of a populist bent;
unequal turnout is the Leavers surest
way of winning. More likely, it will turn
off two voters for each one it inspires.
Splenetic venting is a perverse tactic for
a cause already associated with eccentricity, just as Mr Johnson was always a
perverse choice of frontman for a cause
already associated with risk.
None of this implies that Remainers
are all Ciceros making unanswerable
interventions in the opening burst of the
campaign: they have their own complacency and their own monoculture. But
they also have the excuse of not wanting
this referendum in the first place. Leavers have craved it for decades and now
expect to be wet-nursed through it.
Behind their anger is either gamesmanship or a plain lack of preparation that is
only starting to be exposed.
janan.ganesh@ft.com

Trump the
case for
the defence
FOREIGN AFFAIRS

Gideon
Rachman

e has been called a phoney,


a fraud and a threat to
democracy and that is
just by members of his own
party. Other critics have
compared Donald Trump to Hitler and
Mussolini. I have shared in the widespread horror at Mr Trumps rise but at
the same time, a small voice in the back
of my head has sometimes asked: Is he
really that bad? Might all this hysteria
be a bit overdone?
The death of Nancy Reagan over the
weekend served as a reminder of the
horror and condemnation that once
greeted the rise of her husband, Ronald
Reagan. Like Mr Trump, Reagan was
labelled a fascist, accused of race baiting
and derided as a moron. As a student
when Reagan took office, I remember
the widespread predictions that he
would provoke a world war. And yet
Reagan is now securely in the pantheon
of great presidents. Might Mr Trump
make the same journey from odium to
acceptance?
It is certainly possible to construct a
case in Mr Trumps defence. If you move
beyond the vulgarity of his style and
examine his proposed policies, it is clear
that on many domestic and foreign pol-

icy issues, he is more moderate than


several of his establishment rivals for
the Republican nomination. Mr Trump
has argued for closing tax loopholes for
high finance and has said the state
should guarantee healthcare coverage
for all Americans. He has also defended
Planned Parenthood, a family planning
group regularly savaged by the evangelical right.
When it comes to foreign policy, Mr
Trumps rhetoric is aggressive and
nationalistic, but his positions on specific issues suggest an Obama-like caution about US military intervention and
democracy promotion overseas. Mr
Trumps rivals are running attack ads
against him for having the temerity to
suggest, correctly, that it might not be a
good idea to scrap the Iran nuclear deal.
Also, in the last television debate, it was
not Mr Trump, but the mainstream
Republicans, John Kasich and Marco
Rubio, who advocated the reckless
option of sending US troops into Libya.
The most controversial Trump positions are his call for the wall along the
Mexican frontier, and a temporary ban
on Muslims entering the US. Both policies have been deliberately phrased in
provocative terms. But a demand for the
enforcement of US border controls and
for zero tolerance of illegal immigration
is ultimately an argument for the
enforcement of existing American law,
which should not be an intrinsically outrageous idea.
The appeal for a ban on Muslims
entering America was also immediately
followed by the phrase, until weve fig-

Philip
Augar

arclays announced last week


that it intends to sell its African operations. The emergence of Bob Diamond, the
banks former chief executive, as a possible buyer raises the question of which bits of its business it
should be cutting.
Mr Diamond, who took control of Barclays Capital in 1996, started Atlas
Mara, an African banking venture, after
he resigned as Barclays chief executive
in 2012. As Barclays joins its international peers in scaling back global ambitions, specialist businesses like Atlas
Mara are growing. A new banking landscape of fewer and smaller universal
banks supplemented by product and
regional banks is beginning to emerge.
Barclays tale is a poignant one, for it
came late to universal banking. After 25

years of trying, it achieved its ambition


of becoming a top-five global bank in
2008, at precisely the moment that the
banking crisis forced others to retrench.
The deregulation of the UK financial
services industry, which started in 1983,
offered Barclays an opportunity to add
investment banking to its impressive
retail banking franchise. It already had a
banking presence in Africa and parts of
the former British empire through
Dominion, Colonial and Overseas, created in 1925 when the Treasury prevented it from expanding domestically.
The combination of retail, investment
and overseas banking would, Barclays
management hoped, enable it to compete with Citicorp, at the time the role
model for all globally ambitious banks.
Under Walter Wriston, chief executive from 1968-1984, the US bank had
targeted annual growth of 15 per cent, to
be achieved through innovation and
acquisition. But Barclays found that
emulating Citicorps reach was harder
than it looked. Investment banking was
unpopular with shareholders and a
drain on capital. So in 1997 it cut its
losses, retrenched in capital markets to

OPINION

Robert
Manning

he tough UN sanctions to be
imposed on North Korea,
the result of an accord
reached by the US and
China, go well beyond previous efforts. Yet if the goal is to change
Pyongyangs behaviour, they will not be
enough.
Unlike the four previous sets of UN
sanctions, these will, if assiduously
enforced, significantly constrain North
Koreas ability to conduct business as
usual and fund its nuclear and missile
programmes. The sanctions contain
measures that will, for example, require
UN member states to inspect all cargo
crossing their territory and to limit coal
and iron exports. The sale of aviation
and rocket fuel to Pyongyang is also
banned.
These are important steps. But as
China accounts for some 90 per cent of
North Koreas trade, the effectiveness of
sanctions will to a large degree depend
on Beijings willingness to enforce them.
And it opposed earlier US draft resolutions.
What appears to have persuaded
China to co-operate this time was the
possible deployment of THAAD missile
defence systems in South Korea. The
prospect of unprecedented trilateral
strategic co-operation between the US,
Japan and South Korea that such a
deployment would represent is a troubling one for the Chinese.
In any case, heavy-handed Chinese
pressure on Seoul backfired. The irony
of enabling North Korea to build nuclear
weapons while telling South Korea it
should not defend itself from the threat

The Kim regime is an


embarrassment Beijing
would rather live with
than face instability
ured out what the hell is going on
which is sufficiently vague to allow
plenty of room to renege.
A large part of the horror at the
Trump phenomenon is that he is
appealing to nasty instincts among
the American electorate. It is, however,
the job of politicians to identify the concerns of voters and to frame a response.
There is a finer line than is commonly
acknowledged between populism
(which all right-thinking people
abhor) and democracy (which we all
approve of). Mr Trump has certainly
revealed an acute and unorthodox political intelligence that has repeatedly left
his rivals and the media flat-footed.
So that is the case for Mr Trumps
defence. Do I buy it? Not really, I am
afraid. The Trump phenomenon is as

There is a finer line than is


commonly acknowledged
between populism
and democracy

much about a political style as about


policies and Mr Trumps style is
abhorrent. His coarseness is a world
away from the courtly good humour of
Reagan. Mr Trump has repeatedly used
the most inflammatory language he can
find, linking Mexican immigration to
rape and endorsing the use of torture
against terrorist suspects. It is not an
accident that he has been embraced by
leaders of the white supremacist movement, such as David Duke.
Mitt Romney, the Republicans candidate in 2012, summed up Mr Trumps
personal style well, when he decried
the bullying, the greed, the showing
off, the misogyny, the absurd thirdgrade theatrics. It would send an awful
message to society if those qualities
were rewarded with the most powerful
political office in the world. Mr Trumps
vanity also makes him absurdly touchy,
which is why he found it impossible, in
the last debate, not to respond to a slur
about the size of his penis. It is frightening to think that a man with this little
self-control could be in charge of the
worlds largest nuclear arsenal.

not. Throughout the world, the pressure


to conserve capital to meet new regulatory requirements caused universal
banks to abandon certain territories,
asset classes and markets.
Barclays decision to sell up in Africa
is part of that process. Mr Diamonds
successor, Antony Jenkins, was subsequently ousted, apparently because he
was considered too aggressive in dealing
with the investment bank. In fact, the
cutting there was not aggressive
enough. The business that Mr Diamond
built was right for the booming markets
of the 2000s but too capital-intensive
for the era of banking austerity.
Barclays is selling a high-return business in Africa, when tougher and earlier
action at the low-return investment
bank would have been a better option.
That would have kept Barclays at global
bankings top table at a time when there
are plenty of seats available. It would
also have spared it the potential embarrassment of negotiating with Mr Diamond.

from Chinas wayward ally was lost on


Beijing.
While the Chinese sincerely oppose
the presence of nuclear weapons in
North Korea, their higher priority is
avoiding instability there. The regime of
Kim Jong Un is an embarrassment
China would rather live with than face
the uncertainty of what may follow.
In Chinese social media, Mr Kim is
routinely derided as Fatty #3. And to
be sure, there is anger and humiliation
in Xi Jinpings politburo at Pyongyangs
defiance. It was no accident that North
Korea announced its missile launch as a
senior Chinese diplomat was disembarking from his plane in Pyongyang on
a mission of dissuasion.
So Beijing may well be willing to inflict
some pain on North Korea, short of
threatening the regime. Nonetheless,
there are enough loopholes in the new
sanctions to protect Pyongyang from
the kind of pain that would cause it to
alter its behaviour.
Cross-border trade between China
and North Korea will not be affected.
China contracts out textiles assembly to
North Korea, bringing in more than
$700m a year to the regime there. Also
lucrative is the export of North Korean
workers to China and the Russian Far
East, estimated to net Pyongyang
$200m or more annually.
The most costly sanction thus far is
the unilateral move by Seoul to shut
down the Kaesong Industrial Zone,
which brought some $120m a year to
Pyongyang. Pressure on Russia and
China to ban the import of North
Korean workers would be another powerful measure and one that the US
Congress is considering.
The US can deal a blow to Mr Kim by
looking at how sanctions against Iran
worked. It should consider ending
North Koreas use of the SWIFT payments system that would ban international financial transactions, in effect
taking away Mr Kims credit cards.
We should not expect Pyongyang to
give up its nuclear weapons anytime
soon, however. Nuclear weapons are so
much a part of the regimes identity that
the constitution was changed to designate North Korea a nuclear state.
But there are ways of causing North
Korea enough pain to lead to negotiations on a freeze on the production of
highly enriched uranium and plutonium production, along with a nuclear
and missile test moratorium. These
would be steps in the right direction.

The writer is working on a book about


Barclays

The writer is a senior fellow at the Atlantic


Council

Finally, Mr Trumps approach to the


world goes well beyond an appropriate
caution about American intervention
overseas. He has also embraced trade
protectionism and is highly sceptical
about Americas alliance commitments
overseas. Those policies, if they are
energetically pursued, would represent
a full-scale retreat from US global leadership which would probably make
the world a much more dangerous
place.
Of course, one of the fascinations of
the Trump phenomenon is that it is very
hard to know how much of what he says
is for real and how much is posturing for
the voters and the cameras. Mr Trumps
record as a businessman and some of his
writing suggests that he is, above all, a
pragmatic dealmaker who likes to make
radical demands as an opening position,
before finding a compromise.
It is certainly possible that a President
Trump would surprise his critics and
govern responsibly. I sincerely hope that
I never get to find out.
gideon.rachman@ft.com

Barclays is looking in the wrong place for cuts


OPINION

China and
America must
cause North
Korea real pain

a debt-based model and put its universal banking ambitions to one side.
Not much was heard of these until
John Varley became chief executive in
2004. By this time, Mr Diamond had
restored credibility to Barclays investment banking operations by making
Barclays Capital a powerful force in debt
capital markets. With this strong second
leg to its business, Barclays regained

A new banking
landscape of fewer
and smaller universal
banks is emerging
confidence and went on the offensive. It
made a series of retail banking acquisitions in Europe and Africa, including
the purchase of a majority stake in the
South African bank Absa in 2005.
Emboldened, Mr Varley and his board
spent a lot of time discussing their vision
for universal banking and concluded
that it would not be enough merely to
become one of the pack. Barclays would

try to become a leading global bank,


where the rewards from a balanced geographic and product portfolio were
greatest. It made an unsuccessful bid for
the Dutch bank ABN Amro in 2007 in
pursuit of this aim. The credit crunch
which began that year prompted the
board to reconsider its plans, but it
decided to press on.
Barclays survived the banking crisis
without requiring a direct bailout from
the UK government, and took advantage of the chaos on Wall Street to pick
up Lehman Brothers equities and corporate finance business for a song in
2008. It now had a full-blown investment bank to go alongside its globally
spread retail and commercial banking
business. At last Barclays was a topdrawer universal bank.
Its moment in the sun proved to be
fleeting, however. In 2008, Citigroup,
the successor to Citicorp, collapsed and
the US government had to bail it out.
Aggressive management action followed and by 2010 a refocused, more
geographically compact client-led business had emerged. Citigroup was on the
way back but universal banking was

12

FINANCIAL TIMES

Tuesday 8 March 2016

BUSINESS LIFE

Managers
Anonymous
face a digital
challenge

Andrew Hill
Onmanagement

Occasionally, I host roundtable debates


between chief executives. They like to
show off, which is tiresome, but
eavesdropping on their high-level
exchanges is almost always useful.
Last week, I led a working dinner for
a different and more interesting group.
Each person was leading digital
transformation for public or private
sector groups, from finance to telecoms
to media. Among them were an
inventor, a former television producer,
a venture capitalist and a couple of
computer scientists.
As the only layman, I had expected
an evening of forbidding tech talk.
Unlike their bosses, though, this group
wanted to be frank about the
managerial challenges they faced. One
described the off-the-record discussion
as like a therapy session: Managers
Anonymous, perhaps.
Some of the problems raised were
predictable: the friction between new
technology and legacy systems; the
mismatch between rapid digital
advances and the sluggishness of
culture change; the quotidian
frustrations of having to implement
woolly strategy, and the perennial
problem of being siloed with IT, who, in
the words of one, are the people who
get the blame for everything.
I was surprised, though, when the
group started to complain about what I
think of as a trivial part of corporate
life: job titles. The chief digital officers
were particularly exercised. Who goes
to Amazon and asks who their chief
digital officer is? asked one. It would
be like having a chief paper officer at a
newspaper, added another scornfully.

Chief executives, I can assure you,


never gripe about their job titles
unless it is to lament that they dont
have enough of them or to moan that
shareholder activists are trying to take
one of them away.
What is interesting about chief
digital officers wanting to change their
corporate handles is that they are part
of a cohort of executives that others
supposedly yearn to join.
In 2012, Gartner, the consultancy,
predicted chief digital officer would
be the most exciting strategic role in
the decade ahead. The job was third in
Korn Ferrys list of most in-demand
C-level positions for 2015, just behind
chief innovation officer. The most
recent survey by recruitment group
Harvey Nash of chief information
officers who often have overall
responsibility for technology policy
found almost one in five were working
with a chief digital officer, more than
double the previous year; 13 per
cent of them actually coveted the
digital job.
You may wish to discount data from
consultants, who aim to sell their
services to chief digital officers, or
headhunters, for whom every role with
a C at the front is a potential fee-earner.
The consensus, however, seems to be
that chief digital officers are sexy . . . to
everyone except incumbent CDOs.
From the outside, title-envy or titlehate has a whiff of the ridiculous. I
introduced myself at the dinner by
pointing out that, contrary to my title
of management editor, I neither
manage anyone, nor edit anything. But
titles count within large organisations,

From the
outside,
title-envy
or title-hate
has a whiff
of the
ridiculous

as badges of authority, as flags of


convenience those who fly them gain
a mooring in strategic discussions or a
measure of budgetary control and as
concise descriptions of function. The
title of chief digital officer, like the title
of management editor, seems to be
falling short in that last category.
The appointment of a CDO is
sometimes merely a way for the board
to show it is doing something
anything about the risk of
technological disruption. Occupants of
such new and ill-defined roles find they
have to fight to carve out space. One of
the dinner guests said she would prefer
to be called chief transformation
officer, to signal the magnitude of the
change she had been asked to oversee.
Another found out, months into his
job, that colleagues described his plans
initially as Johns strategy, then the
digital strategy and only lately, and
satisfyingly, as the strategy.
This discussion may just be a sign of
vaulting ambition. Which executive,
from finance to human resources, does
not aspire to strategic influence? But I
think these managers discontent with
the title points to the moment not far
in the future when everyone works
digitally and the D-word simply falls
away. Appointing a chief digital officer
now may even delay that moment.
As one holder of the title pointed out
over dinner: My job is to make this
role redundant. Now that is not
something you hear chief executives
say often.
andrew.hill@ft.com
Twitter: @andrewtghill

A mix of scientists
returning from the US,
local talent and R&D give
Chinese pharma a boost,
writes Andrew Ward

hen Samantha Du
returned to her native
China in 2001 with a
mission to build a pharmaceuticals company,
the move seemed like a terrible mistake.
She had left behind a comfortable life
in the US where she had spent the previous 12 years, first as an academic scientist and later in roles of rising seniority
at Pfizer. Back in China, she felt like an
alien in her own country as she tried to
start her venture.
The nadir came during a business
meeting in which the refreshments were
in the form of hard liquor. She recalls:
Everyone drank until they fell asleep.
Then they woke up and signed the contract. While they were sleeping I left the
room and cried. I had left a great career
and a big house in rural Connecticut.
Now here I was negotiating with drunk
people.
Several times she came close to quitting but was dissuaded by business partners. Fifteen years later, her persistence
appears to be working. As, first, chief
scientific officer of Hutchison China
MediTech and now chief executive of
Zai Lab, she is prominent among a wave
of biotech entrepreneurs aiming to
modernise Chinas pharma industry and
make the country a force in drug development.
Most of them are sea turtles the
name given to Chinese professionals
trained in the west who have returned
home armed with qualifications and
experience. All nine of Zai Labs top
management studied at US universities.
They have been drawn home by rapidly
improving opportunities in Chinas life
science sector as Beijing pumps
resources into its quest for a more innovative, high-value economy.
After a PhD in biochemistry at the
University of Cincinnati, Ms Du joined
Pfizer as a research scientist and ended
up in charge of licensing some of the US
groups drugs around the world. She had
not thought about leaving until a call
came from Hutchison Whampoa, the
holding company of Hong Kong tycoon
Li Ka-shing, inviting her to head a new
pharma enterprise. They said, You
have already achieved so much in the
US. Why not come back and do something for China?
With the resources of one of Asias
richest men behind her, she crisscrossed China looking for assets to build
a company around. It did not prove an
easy task. Instead of hidden scientific
gems, Ms Du found a domestic industry
more interested in eking out margins
from cheap generic drugs than investing
in research and development. The
mindset was all about trading rather
than innovation, she recalls.
Gradually, however, China MediTech,
or Chi-Med, began building its own R&D
capabilities in partnership with western
drugmakers including Eli Lilly and
AstraZeneca. The company floated on
Londons Aim stock market in 2006 and
is planning a dual listing on Nasdaq this
month as it pushes two cancer drugs

Chinas biotech revolution


ushered in by entrepreneurs
Sea turtle:
Biotech
entrepreneur
Samantha Du
returned to do
something for
China Algirdas
Bakas

Fledgling
industry

From
copiers to
innovators

through late-stage trials, with five other


products in earlier studies.
Ms Du left Chi-Med in 2011 to take
charge of Chinese healthcare investments for Sequoia Capital, the Silicon
Valley venture capital firm, before
founding Zai Lab in 2013. The company
has licensed experimental treatments
from big pharma partners including
Sanofi and Bristol-Myers Squibb, but Ms
Dus long-term focus is on developing
homegrown drugs. Zai in January raised
$100m in private finance from Sequoia
and other big international investors
and recently opened an R&D base in
Shanghai.
We want to be the first Chinese biotech company with global standing,
says Ms Du.
She is hardly alone in that ambition.
BeiGene, a company founded by Xiaodong Wang, former professor of biomedical science at the University of
Texas, last month raised $158m on Nasdaq to accelerate development of four
promising cancer drugs.
Perhaps the most successful sea tur-

tle in Chinas life science sector is Ge Li,


who earned his doctorate at Columbia
University and became a biotech entrepreneur in the US before returning
home to found WuXi AppTec 15 years
ago. The company has since become the
biggest Chinese contract research
organisation, performing R&D and
manufacturing for many of the worlds
biggest pharma groups.
About 5 per cent of WuXi AppTecs
10,000-strong workforce was trained
overseas.
Among them is Hongye Sun, who
studied at Harvard and spent a decade
with a Californian biotech company
before being lured back to run WuXis
genomic sequencing business. Mr Sun
says the biggest difference with the US is
the speed of decision making.
In America it felt like I needed 60
meetings to get something done,
whereas here I need four.
WuXi AppTec has tried to harness the
vigour of Chinese business culture while
importing the quality standards learnt
by its top scientists in the west. We

Many companies aspire to be the


Genentech of China, but JHL Biotech
may have a better chance than most.
The company includes more than a
dozen former scientists and engineers
from Genentech, the Californian drug
developer still seen by many as crown
jewel of the US biotech sector even after
its takeover by Roche of Switzerland
seven years ago.
JHL was founded in 2012 by Racho
Jordanov and Rose Lin, who have more
than 40 years of Genentech experience
between them. Samantha Du, the
prominent Chinese biotech entrepreneur,
is on the board after spearheading an
early investment in the company by

Sequoia Capital, the Silicon Valley


venture fund.
JHL, which has raised $135m in private
financing, is based in Taiwan and is
building a presence on the mainland with
a manufacturing plant in Wuhan, Hubei
province. Its initial focus is on biosimilars
a new category of copycat drugs that
provide cut-price competition for
modern biological medicines made from
living cells.
But Mr Jordanov says JHL will
eventually develop its own products, and
he thinks Chinas pharmaceuticals sector
will make the same transition. China will
graduate from being good copiers to
good innovators.

have 15 minutes of compliance training


every morning, says Mr Sun. We tell
our people, We cannot afford a single
mistake because if something goes
wrong it could ruin the company in a
day.
While returnees are leading the development of Chinas biotech sector, they
are increasingly drawing from an
expanding local talent pool to build
their businesses. China overtook the US
in 2008 as the worlds biggest producer
of PhDs, and the number has continued
to grow rapidly.
Critics question whether the increasing volume is matched by quality. Mr
Sun says standards at the top Chinese
universities are high, with fierce competition for entry. But he concedes that
locally trained scientists can be too deferential.
I tell employees to argue with me and
call me by my name, not my title. I tell
them, If you use my title, you are less
likely to tell me the truth.
With soaring numbers of scientists,
rising investment in R&D and growing
demand for medicines from an ageing
population, China has all the ingredients for growth in its biotech sector. Ms
Du and others like her are aiming to replicate the success of US companies such
as Genentech and Amgen, which suddenly appeared in the 1980s to become
forces in global pharma.
As a service provider to local and foreign companies alike, WuXi AppTec is
well placed to assess progress. Steve
Yang, the companys chief operating
officer and a veteran of AstraZeneca,
Pfizer and the University of California,
urges caution.
There is a group of Chinese companies that are well positioned, but how
many years did it take for the world to
appreciate Genentech? It took decades.
The race is on, but its still very early.

The fit executive

Bend and stretch without


fear of a snapping point
CHARLES WALLACE

Navesh Chitraka/Reuters

While most business people


recognise the need to stay
fit by going to the gym,
cycling or running, fewer
understand the importance
of staying physically
flexible, especially in middle
age. They might do a few
static stretches after
working out but are their
joints mobile?
The picture above
shows a child in a squat
position, which is the way
many people sit in the
developing world.
For most business people
who commute on a train,
spend their day in an office
chair and their evening in
front of a television, a deep
squat like this can feel
almost impossible.
That is because, over
time, their hip flexor muscles
become locked in a
relatively inflexible
position. Hamstrings, for
instance, can feel as taut as
steel cables despite those
after-workout stretches.
Some people try to
address these problems
with yoga, which is fine if it
works for you. However, a
surprisingly large number of
people, men in particular,
find many yoga positions
difficult to achieve and
even painful.
As the science writer
William Broad explored in
his book, The Science of
Yoga: The Risks and
Rewards, men are much less
flexible than women. If they
and their teachers do not
know what they are doing,
they are far more likely to
end up in the casualty ward
in hospital. Forcing their
bodies into unfamiliar yoga
postures can lead to injuries,
such as damage to the back
or nerves.
As a result, I have been
exploring online resources
to help office workers,
whose muscles have become
unusually tight, to regain
flexibility.
While there are many
videos available online, I find
that most of them are aimed
at younger people who are
still flexible.

One person who


understands the problem of
tight muscles is Ryan Hurst,
an American fitness trainer
based in Tokyo, one of
several athletes on a website
called GMB Fitness.
Mr Hurst, program
director, offers a series of
stretching videos aimed
especially at the super-stiff
who want to increase their
range of motion. For
example, for the past
few weeks I have been using
his eight-exercise hip
flexibility programme and
found that I have increased
my mobility.
Mr Hurst understands
that even getting into the
starting position to do a
stretch can be difficult for
many people, so he gives
instructions on how to
begin.
GMB Fitness offers a $75
online course called
Functional Flexibility but the
hip programme and others
are available free of
charge.
Another stretching expert
who seems to understand
the constraints of age is Kit
Laughlin, an Australian who
has studied traditional
medicine in Japan.
Mr Laughlin has written a
book called Overcome Neck
and Back Pain, which is a
lifesaver for me after long
flights in narrow seats, and
Stretching and Flexibility,
which is based on Stretch
Therapy, his course for staff
at Australian National
University.
Mr Laughlin understands
that many peoples joints are
no longer mobile and that
they cannot get into
difficult poses.
He outlines and explains a
technique that he calls the
reciprocal inhibition reflex
to relax very tight muscles
such as the hamstrings. This
is a problem confronted by
many runners, including me.
Mr Laughlins exercises
loosen my hamstrings more
than any other stretch that
I have tried.
fitexecutive@ft.com

Great place to meet

Florences Resort, Freetown

Katrina Manson

Where Sussex beach, outside Freetown


Plug sockets/WiFi Yes

Espresso Le6,000 ($1.50)

Open Daily until 11pm

Privacy AEEEE

In Freetown, austere
formal dining and a
beachside city make for a
poor mix, so it is best to
wade into Sierra Leones
laid-back lifestyle
and hold your most
high-powered meals beside
the sea.
In the wake of the
countrys Ebola epidemic,
beach time, happily, is firmly
back on the menu.
The most favoured spot
for a weekend lobster lunch
is Florences also known
as Francos a half-hour
drive outside the capital on
a stunning peninsula where
every bay beckons with
sun-baked sand at the
foot of green-forested
mountains.
Local couple Florence
(Sierra Leonean) and Franco
(Italian) have turned Sussex
beach into a carefree dining

spot where Freetowns


government high-ups kick
back, miners alleviate their
commodity price-crash
woes, Chinese workers strip
down to trunks for a swim
and expat aid workers soak
up the rays.
Opt for outsized lobster
kebabs or the Waynes
special (pasta in a creamy
you guessed it lobster
sauce) and enjoy some
shade beneath palm
fronds decked out with
Africana bunting.
If you linger a little longer
than planned, bag yourself a
breezy room in the pretty
white-plaster hotel.
They dont call it swit
Salone (sweet Sierra Leone
in the Krio language) for
nothing. Just watch out for
falling coconuts.
Katrina Manson

Tuesday 8 March 2016

13

FINANCIAL TIMES

ARTS

Gasps and screams for a band hitting peak confidence

T H E AT R E

Hungry
Public Theater, New York

aaaae
POP

Max McGuinness

The 1975

the floor like a murder victim or hiding


like a ghost.
From there she lurches to life. The
three solos I saw were as elemental as
Eiko & Komas acclaimed work, but
between the antipodes of living and
dying they tilted more towards life. A
decrepit, primitive version, to be sure.
Eiko did not walk so much as crawl, hobble and drag. She did not stand as often
as she squatted, tottered and sank. But
the unpredictability and avarice of her
impulses marked her as more animal
than vegetable. She gathered her
kimono about her as if hoarding
treasure, stuffed daisies in her
mouth as if she had not eaten in
days and spewed them out like poison (though the streaming petals
resembled confetti).
If you are an immigrant, Eiko
explained after one solo, you are
always a visitor. Close enough for us
to touch, this body in places was
always bracingly out of place.

George Bush Senior once declared that


he wanted a kinder, gentler nation.
The family of liberal Democrats in Richard Nelsons new play Hungry (the first of
a trilogy set during the current election
year) would once have mocked that
folksy bromide. But, as the Gabriels sit
around their kitchen table in upstate
New York lamenting the state of the
nation, their own genial pessimism
seems just as quaint. Even the nearby
Roosevelt Museum has declined
(because of a spurious new audio commentarybyBillClinton).Itsnothistory
any more, its now just politics, says
George, an avuncular piano teacher and
cabinet-maker played by Jay O. Sanders.
Whatthehellhappenedtohistory?
Such harrumphing could easily
become tedious over the course of an
hour and forty minutes. And there are
some longueurs: do Georges wife Hannah (Lynn Hawley) and sister Joyce
(Amy Warren) really need to read out
extended passages from a 19th-century
housekeeping manual? Yet thanks to
Nelsons ultra-naturalistic direction and
calm, understated performances (particularly from Maryann Plunkett as a
recently widowed sister-in-law), Hungry
isasurprisinglycaptivatingwork.
Nothing much happens and while a lot
is said, little of it has any real dramatic
purpose (or even political edge). There
are some tensions between the characters, but these never erupt into genuine
conflict, not least because the Gabriels
are all wholesome, herbivorous types
whoseonlyvicesappeartobeasecond
glass of wine and occasional bursts
of profanity. Having discarded
such basic theatrical conventions, Nelson leaves us with a
play that is as close to real life as possible,
down to the bread, ratatouille and apple
crispthatarepreparedonstage.
Thismaynotbethewaymostofuslive
now, but the edifying illusion is almost
perfect. And amid the bombast of contemporary American politics and arch
cynicism of televisions House of Cards,
Hungry offers a kinder, gentler form of
politicaltheatre.

To March 19, danspaceproject.org

To March 27, publictheater.org

Brixton Academy, London

aaaae

Ludovic Hunter-Tilney
Louche, theatrical and unafraid of
embarrassing himself, The 1975s singer
Matthew Healy has all the attributes of
the rock-star frontman. At the first of
five shows at Brixton Academy, he
drained glasses of red wine, danced with
abandon, fell to his knees during a turbulent number about mental instability
and patted his heart while singing about
love. Tumbling corkscrew hair and
leather trousers evoked memories of
INXSs Michael Hutchence. So did lyrics
about addictionandsex.
His dramatics might have come across
as clichd had the music ploughed a similar furrow. But The 1975 are more
unpredictable than that. The Manchester quartet are as much a pop band as a
rock band, the kind of outfit who attract
screaming fans and paint their songs
in vibrant colours, illustrated at the
Academy by the pale greens and pinks of
the light show. The title of their new
album, I like it when you sleep, for you are
so beautiful yet so unaware of it, sounds
like something a sixth form poet might
employ to woo a particularly impressionable girl. It is not the kind of gambit
your typical leather-trousered rocker
would comeupwith.
The show opened superbly with the
pop-funkswaggerofLoveMe,acharismatic number with the shameless strut
of prime Duran Duran. It was the sound
of a band at peak confidence: the new
album has debuted at number one in the
UK and the US. The foursome were
accompanied by two extra musicians,
one supplying moody sax solos: another
example of The 1975s love for the 1980s
instead ofthedecadeoftheir name.
LED lighting towers provided spectacular staging effects. There were gasps
from the audience as a night-time cityscape lit up around the band for Ugh!,
while the finale, Girls, ended with the
quartet silhouetted like photographic
negatives against a backdrop of stark
white lighting.
The songs, bar a tempo-sapping

Dramatic:
Matt Healy of
The 1975 on
stage at Brixton
Academy.
Below: Eiko in A
Body in Places
Justin Ng/Retna/Photoshot
Ian Douglas

passageofslownumbers,wereflawlessly
executed, ranging from the slinky R&B
of Loving Someone to the only outright rocker, Sex. The sense of risks
being taken an awareness that the
combination of decadent subject matter,
polished music and Healys rock-star
antics might have fallen apart at any
momentaddedtotheenjoyment.
the1975.com

PERFORMANCE

A Body in Places
Danspace Project, New York

aaaaa

Apollinaire Scherr
Is she dying? a passer-by asked upon
catching sight of Eiko slumped on a
bench outside the Liquiteria in
New Yorks East Village one recent
bright, cold morning. The performers

eyes were dim, her skin pale and her


mouth agape.
The answer was yes, in a manner
of speaking. As Eiko, the surnameless
figure encountered in performance
with her partner Koma these past
40 years, she has always been verging
on death. These gentle creatures
nested in leaves, buried in mud,
swamped in water, barely moving
have brought us up close to the brutal
fact of lifes tenuousness.
The current endeavour finds Eiko
alone. (Koma is recovering from an
injury.) The month-long extravaganza,
midwifed by Danspace Project, includes
all manner of Eikolalia: a film series,
tribute nights, movement workshops,
poetry readings, and a marathon
memorial event for Fukushima. But the
core is Eikos site-specific solos, which
transpire each weekday at a different
hour and spot for three weeks. A small
audience gathers outside St Marks
Church to be escorted to a nearby boutique, bookstore, weavers studio,
church wherever Eiko is splayed on

Glasss opera doesnt bear repetition


Moments of
grandeur:
from far left,
Emma
Carrington,
Anthony Roth
Costanzo and
Rebecca
Bottone in
Akhnaten

OPERA

Akhnaten
Coliseum, London

aaeee

Hannah Nepil
Was it the naked countertenor? Certainly something about this new production of Philip Glasss Akhnaten
chimed with the audience; apparently it
has already broken box office records
for modern repertoire at English
National Opera. Yet there was nothing
really novel in it. Akhnaten has been
around for 32 years, and though this is
its first full UK staging since 1987, its
much in the vein of Glasss other two
portrait operas, Einstein on the Beach
and the Gandhi-inspired Satyagraha,
both of which have visited London in the
past few years.
Like them, this work was inspired by a
historic figure who has become the stuff
of myth. Akhnaten, the pharaoh who
briefly introduced monotheism to the
ancient Egyptians before being killed by
the old priesthood, is a fascinating subject for an opera. What we have here,
though, is an infantile treatment that
reduces the protagonist to a cardboard
cut-out. Glasss relentless minimalist
repetitions remain indifferent to character; for long stretches theyre accompanied by no action at all. And though

MUSIC THEATRE

Lover
Hong Kong Culture Centre Grand Theatre

aaaae

Ken Smith
Lover is a study in contrasts. Chinese
and European traditions, percussion
and a cappella choral singing, rhythm
and stasis, ancient texts and modern
poetry: all are in play, but its not clear
that the piece is about any single one
of these oppositions.
Much clearer are Lovers origins.
Christian Jost, who composed his 2006
choral opera Angst for the Rundfunkchor Berlin, had been commissioned to
write another work for the ensemble
while he was composer-in-residence of
the Taiwan National Symphony Orchestra. Enthralled by Chinese culture, Jost
enlisted the U-Theatre, Taipeis extraordinary percussion ensemble-cumphysical theatre troupe.
The resulting piece, which received its

Richard Hubert Smith

there are moments of grandeur, not


least the chorus of Akhnatens daughters in Act 3, for the most part this is
mind-numbingly boring.
Enter director Phelim McDermott of
the English theatre company Improbable, who has come up with a twopronged solution: juggling and fullfrontal nudity. Both pop up far too frequently, and last far too long. Like
McDermotts 2007 production of Satyagraha, much of it is played out in slow
motion; in one episode, the naked pharaoh takes what feels like an eternity simply to descend a flight of stairs. Presumably the intention was to heighten the
sense of ritual and mysticism, but,
together with the mono-rhythmic score,
such self-indulgence soon starts to grate.

Down in the pit, conductor Karen


Kamensek does a heroic job with this
soulless, mechanical music while the
singers in effect become human bellows,
squeezing out a steady stream of wordless shrieks. Somehow, though, they
retain their dignity. Mezzo-soprano
Emma Carrington brings phenomenal
energy to Akhnatens wife Nefertiti,
while soprano Rebecca Bottone stands
out for sheer stamina as his mother,
Queen Tye. As for the lead, countertenor Anthony Roth Costanzo, his pure,
crisp voice is the best thing about this
production, proving that he didnt need
to wander around starkers to give us a
talking point.

first performance outside Berlin and


Taipei last weekend at the Hong Kong
Arts Festival, places the Radio Choir in
the orchestra pit and an expansive battery of Chinese percussion (along with a
Chinese zheng and a few western cymbals) on stage. Texts from the ancient
Book of Songs are juxtaposed with love
poetry by e e cummings, which director
Liu Ruo-yus choreography uses as its
point of departure. Lin Keh-huas set

and lighting designs are minimal, focusing most of the attention on the music.
Conducting in the pit, Jost deftly
brought his opposing musical forces
together, with percussion writing that
drew heavily on minimalisms vigorous
multicultural bustle. The densely harmonic choral writing, on the other
hand, unfolded with remarkable rhythmic precision. The U-Theatres percussionists, evidently responding to a conductor for the first time, embraced a
much wider dynamic and expressive
range than usual; the Radio Choir, by
contrast, percolated with restraint.
Charitably put, Lover is a thoroughly
pleasant 70 minutes of well-crafted cultural dialogue that leaves the listener
wanting more. As a work of art, however, it ultimately resembles a diplomatic forum whose participants are all a
bit too, well, diplomatic. Jost has fashioned a musical language where each
side can be true to its own tradition
without offending the other, but stops
just short of forming a lasting exchange.

Well crafted: Christian Josts Lover

hk.artsfestival.org

To March 18, eno.org

14

FINANCIAL TIMES

Tuesday 8 March 2016

Fit of pique
Bonds issued by EDF are regarded as enjoying quasi-state protection, but their spread
over sovereign debt has risen recently. EDFs difficulties are not helped by how nuclear
energy as a technology has become steadily more expensive in the past decade
Twitter: @FTLex Email: lex@ft.com

A market leader in South Africa wants


to grow abroad, hoping to reduce
exposure to its slow-growing and
politically unpredictable homeland,
and its volatile currency. It comes up
with a perfect solution: keep the back
office in its lower-cost home but obtain
a listing in London, where it can tap
wider and deeper capital markets. Old
Mutual in 1999? No. Mediclinic in 2016.
The private hospital group, partowned by Johann Ruperts Remgro
investment vehicle, reversed into
London-listed Al Noor Hospitals in a
complex deal that finally completed in
February. Like Old Mutual, it became a
FTSE 100 constituent at the next index
review. In years to come, will it too be
left pondering whether to return to
South Africa, or break itself up after illadvised and expensive forays overseas?
It seems unlikely. When Old Mutual
floated, virtually all of its profit and
revenue came from South Africa.
Mediclinic was already a more diverse
entity; even before the Al Noor
transaction, southern Africa accounted
for less than two-fifths of Mediclinics
operating profit. It also has more
pedigree as a quoted company; its
shares handsomely outperformed
those of domestic rival Netcare over
the five years to end 2015. By contrast,
Old Mutual went direct from mutual
ownership to a full London listing.
Buying Al Noor was not just about its
London quotation, helpful though that
certainly was. The two companies have
significant interests in the United Arab
Emirates one in Dubai, the other in
Abu Dhabi so there will be cost
savings (although there are no formal
estimates of these yet). The emirates
are attractive markets: demand for
healthcare is rising rapidly, young
populations mean more demand for
maternity and paediatric care, while
prevalence is high of lifestyle
diseases such as diabetes. And both
emirates dirhams are, in effect, pegged
to the dollar. Other hard-currency
profit centres include the UK, where it
owns 30 per cent of quoted private
hospital group Spire, and Switzerland,
which accounts for almost half of
profits.
Further acquisitions will certainly be
on the agenda in the medium term.
The quality of that expansion holds the

Jun
2014

3
2

1010

7
5

10

1020

8
10

6
11

16
12

11

LO

14

1010

11

40

13

14

19

1010

12

LOW

1010

15
Wind speeds in KPH

21

Forecasts by

20






























JOTTER PAD







60



2008
2005

40

2006
20

Mar
2016

2015

Some distrust of nuclear energy is


just technophobia: some people think
it makes you glow in the dark or
breeds three-headed fish. It can also
offend anyone good at counting cash.
Hinkley Point C, an 18bn project
for two new reactors on the UKs west
coast, could make even the most
ardent nuclear groupie nauseous.
Take Thomas Piquemal, who has
resigned as chief financial officer of
EDF rather than give Hinkley the goahead. That looks odd; while much
about the project is uncertain, the
92.50 price for each megawatt-hour
that Hinkley will generate is not. At
twice the cost of gas-generated
power, it has already resulted in
accusations of profiteering.
Mr Piquemal has good reason to

flounce off, though. In Europe, the


technology behind Hinkley C has so far
generated only cost overruns. EDF
could do without that angst.
Lower electricity prices squeezed
margins in 2015 because nuclear
generation costs are relatively fixed
but cash flows have been negative for
half a decade and debt has soared.
Despite this, EDF has been forced to
support Areva, another French nuclear
group, raising its liability further.
And it is not as if EDF lacks
investment projects of its own. Frances
ageing fleet of 58 reactors needs
retooling, at an estimated cost of
100bn. The unit cost of nuclear
energy keeps rising, unlike that of
competitors like wind or solar.
The political support needed to make

UK voters pay over the odds for their


electricity is not wholly dependable;
future British ministers, who will
have less political pride invested in
Hinkley, may have fewer qualms
about demanding a price cut.
EDF shares reacted badly to the
loss of a director seen as a defender of
minority interests. But a full 85 per
cent of the equity is state-owned.
More private interest can be found
among bondholders; they might have
wished that his departure makes
Hinkley Point C less likely.
Any normal company in EDFs
position would retrench, not bet
more billions on a technology with
such a record. Regrettably, French
industrial policy will probably lean
against a rethink.

not an idle one, thinks Aviate research.


Share sales by executives will not settle
nervous stomachs.

be followed by a three-way split),


ChemChina is buying Syngenta. The
context to these mega deals is slow
global growth which hurts chemical
profits and the end of a commodity
boom which threatens the best of the
specialty businesses, agrochemicals.
The hope is that combining agriculture
businesses and shunting off more
cyclical businesses will protect profits,
increase valuations, reduce costs,
and increase revenue (peace in the
Middle East has not been promised,
but stay tuned).
BASF must be feeling peer pressure.
Analysts see modest growth in its
future. Its stock is off by a third in
the past year. Activists, who had such
fun with Dow, will turn up eventually.
But it should not come anywhere
near DuPont or any other big deal,

such as a bid for $39bn Monsanto.


Looking past what sort of premium
they would have to pay DuPont above
its current $55bn market cap, BASF
would also have to pay a $1.9bn breakup fee to Dow. This is enough to hurt.
Dow and DuPont expect just $3bn in
cost savings. BASF, as Bernstein has
pointed out, might not be able to
achieve as much, given lower
geographical overlap.
Instead, BASF can focus on its goal of
1bn in operating cost savings by 2018
(big, against operating profits of
6.2bn last year). Sustainably lower
capital expenditures (it aims for
4.2bn in 2016, down from 5.8bn last
year) will be a boost too. If these goals
are met, BASF will have plenty of
money to spend while its biggest
competitors still nurse hangovers.

BASF:
one day at a time
BASF boss Kurt Bock said recently that
his company takes a very sober view
of acquisitions. The market thinks he
could just tumble off the wagon. A
report late last week suggested that the
German chemicals company might
interrupt the Dow-DuPont tie-up with
a counterbid for DuPont; DuPonts
shares have hopped a bit in response.
What must the abstemious Mr Bock
think of his peers bacchanal? Along
with the Dow-DuPont deal (which is to

Todays temperatures

Abu Dhabi
Amsterdam
Ankara
Athens
6
Bahrain
Barcelona
Beijing
Belfast
1020
Belgrade
Berlin
21
Brussels
Budapest
Cairo
Cardiff
Chicago
Cologne
Copenhagen
Delhi
Dubai
17
Dublin
Edinburgh
Frankfurt
Geneva
25
Hamburg
Helsinki
25
Hong Kong
Istanbul
Lisbon
LOW
London
Los Angeles
Wind speed Luxembourg
in KPH Madrid

Thunder
Cloudy
Sun
Fair
Shower
Sun
Sun
Drizzle
Fair
Fair
Cloudy
Fair
Fair
Rain
Cloudy
Cloudy
Cloudy
Sun
Shower
Cloudy
Rain
Fair
Cloudy
Shower
Sleet
Fair
Sun
Sun
Cloudy
Sun
Fair
Sun

30
7
17
19
25
14
6
8
13
8
6
11
27
8
19
6
4
29
28
8
8
7
6
6
3
24
16
15
7
22
5
11

Malta
Manila
Miami
Milan
Montreal
Moscow
Mumbai
Munich
Naples
New York
Nice
Nicosia
Oslo
Paris
Prague
Reykjavik
Riga
Rio
Rome
San Francisco
Singapore
Stockholm
Strasbourg
Sydney
Tokyo
Toronto
Vancouver
Vienna
Warsaw
Washington
Zagreb
Zurich

Fair
Sun
Cloudy
Shower
Cloudy
Cloudy
Sun
Cloudy
Shower
Fair
Fair
Sun
Fair
Cloudy
Cloudy
Sleet
Rain
Sun
Shower
Fair
Shower
Cloudy
Fair
Sun
Sun
Cloudy
Shower
Cloudy
Drizzle
Sun
Cloudy
Cloudy

CROSSWORD
No. 15,183 Set by GURNEY


80

FT graphic Sources: Bloomberg; Energy and Climate Intelligence Unit; FT research

1030

LO

15

France sovereign 1.75% bond


(maturity Nov 2024)

2012
2011

1.5

0.5

When a companys executives sell


their shares, is it sensible portfolio
management or an ill omen for other
owners? Yesterday, traders focused on
the latter for Just Eat, the UK-listed
online food marketplace. Just Eats
chief executive and chief financial
officer dumped about 60 per cent
of their direct holdings. The shares
fell 10 per cent.
Just Eat has built up a fast-growing
business as an internet middleman in
home food delivery. There is no
disruption; everyone wins. Takeaway
joints can pay to reach a wider
audience through Just Eats website
while customers have more meal
choice. This online model found favour
in Denmark first, then in the UK and
elsewhere. Sales growth at Just Eat has
compounded at 60 per cent a year
since 2012. Full-year results earlier this
month came in ahead of expectations.
Profit margins touched record highs.
Management expect another stonking
year ahead.
And yet the key executives are
exiting. True, regulations restrict the
timing of such insider sales, so trades
tend to be large when the window
opens. For the paranoid, however,
there are worrying signs around the
edges of the results. The UK and
Denmark, together three-quarters of
revenues, have shown signs of slowing.
Orders from UK active users,
generously defined as at least one order
every 12 months, have slowed to 29 per
cent, below the growth rate for orders
overall. If the UK, responsible for
almost all group profits, is slowing then
the companys plan to charge
restaurants more for its service looks
trickier. That helps explain the 13 per
cent drop in the shares so far this year.
Think Just Eats business model
makes sense? Heres another one: just
copy. Trying to create the Uber or
Amazon of food takeaway has worked
well so far but the threat that either
or both could do the same in the UK is

2013

2010

2001

HIGH

100

2.0

Just Eat:
upset tummies

990

/MWh, 2014 currency

EDF 4.625% bond


(maturity Nov 2024)

1.0

LOW
4

Rising costs of nuclear energy

Per cent

key to Mediclinics prospects. After all,


Old Mutuals decision to float in
London did not create the
conglomerate discount investors
apply to its shares. What happened
after the IPO was the problem.

Mediclinic:
not the same Old story

1000

EDF and French bond yields

ACROSS
1 Press forward acquiring highclass property (6,6)
8 Area resentful over deficient old
spray (7)
9 Language game initially
surprises Welsh girl (7)
11 Ahead, making case not
quietly at first (7)
12 Countryman in trap returning to
become more involved (7)
13 Profit from factory in end that is
extremely limited (5)
14 Legal peoples unusual
stationery I avoided (9)
16 One practising in section of
Army listens to Queen (9)
19 Son with heart making mark (5)
21 Was contemptuous about
routine in drag first of all
included in act (7)
23 Against Church training idea (7)
24 Incident leads to errant pupil in
school getting lines (7)
25 Liberal seaman in group
tackling addiction showing
character of Arabs? (3,4)
26 Love to be entertained by
selfless men working in this
faculty? (5,2,5)

DOWN
1 Abandon alcoholic drink after
warning, brief (7)
2 Doctor used PIN without being
noticed (7)
3 Clever to turn up circulating
European members
communications (9)
4 Flier feels upset without going
to extremes (5)
5 New artiste more appealing
(7)
6 The instant wife puts ring on (7)
7 Order big beer daily it helps to
get to the other side! (6,6)
10 When wrestling, neat nelson is
required? No (3-9)
15 These change position and stun
actor in play (9)
17 Females written about French
king meeting English
admirable lady (7)
18 A right pair, useless, difficult (7)
19 Light moment? (7)
20 Garment finished Sallys
content (7)
22 Finish work for Spanish guy (5)

Solution to Saturdays prize puzzle on Saturday March 19


Solution to yesterdays prize puzzle on Monday March 21
Winners names will be printed in Weekend FT

16
34
25
10
5
6
33
6
14
16
14
25
4
8
5
4
5
32
14
15
32
5
7
29
20
13
9
7
5
22
11
5

US cable TV:
best-laid plans
Does Time Warner Cable (TWC) need a
Plan C? Investors waiting for its merger
with Charter Communications to close
will be hoping not. Share price
movements suggest that they have
been right to keep the faith.
It is more than two years since TWC
inked a surprise deal with Comcast
Corp to assemble Americas largest
cable television and broadband
provider. A surprisingly fierce
opposition effort sunk that deal last
year. Plan B was a back-up deal with
John Malones Charter
Communications, a combination
thought to be less controversial. Three
months after a targeted closing date,
TWC may still need another three
months to finish the job.
In the rapidly consolidating pay-TV
world, Charter/TWC may not even be
the most precarious transaction.
French operator Altice is trying to
crack the American market. After
picking up the second-tier operator
Suddenlink for $9bn it offered $18bn
for New York provider Cablevision last
autumn. To get investors on board, it
had to pay all cash. That will push its
debt to six times earnings before
interest, tax, depreciation and
amortisation post-completion.
Like many a French tourist, Altice
got sidetracked in New York.
Regulators there are wondering just
how much worse customer service will
get as Altice attempts to root out
$900m in annual cost savings. Those
are deep cuts, half of Cablevisions
existing earnings, but it will need them
to help meet its interest bills.
The most recent concerns for the
TWC deal come not from national
regulators, but from the California
authorities, who must also sign off the
combination. The deal should close in
early summer, probably in exchange
for more concessions to consumers.
For merger arbs, closing spreads are
narrowing; not so long ago, share prices
were at 10 per cent discounts to the
deal values. But the gauntlet of
approvals shows that such trades still
require strong stomachs.
Lex on the web
For notes on todays breaking
stories go to www.ft.com/lex

Tuesday 8 March 2016

Banks behaving less badly


The state of industry ethics
PATRICK JENKINS, PAGE 16

15

Toshiba

Chesapeake

EDF

Brent oil

Xetra Dax

Euro/dollar

CBOE Vix

Shanghai
Composite

7.02%
Y224

5.81%
$5.38

6.73%
10.12

5.4%
$40.81

0.5%
9778.93

0.1%
$1.1016

2%
17.20

0.9%
2898.64

Wall Street bonuses see 9% drop

Short
View

3 More staff hired in compliance, risk and tech 3 Effort to cap pay amid volatile trading
BEN MCLANNAHAN AND ALISTAIR GRAY
NEW YORK

The average Wall Street bonus fell 9 per


cent last year to $146,200, as banks
hired more staff and tried to cap pay
amid a surge in compliance costs and
volatile trading.
The figure, published annually by the
office of the New York State Comptroller, reflects the mood of the securities
divisions of New York Stock Exchange
member firms, which generate almost
one-fifth of the states tax receipts.
Wall Streets bonus pool for 2015
covering securities division heads to the
most junior staff came to $25bn,
according to the NYSC estimate, down

6 per cent from 2014 and 27 per cent


from the peak in 2006.
Banks have been adapting to a mass of
new regulations by hiring more staff in
compliance, risk and technology, bringing the industrys average bonus down
for a second successive year. But recruiters say it is also a sign of pressures that
have intensified since the financial
crisis, as banks facing higher capital
requirements try to limit pay to boost
returns to shareholders.
Youve got to work harder with less
money and fewer people to end up in the
same place you were last year, said one
New York-based recruiter.
The outlook for pay in securities units
may improve little in 2016, given sub-

dued activity in financial markets and


big rises in provisions for bad energyrelated assets in banks lending and
investment-banking businesses.
Companies, including Bank of America, are cutting more than the usual bottom 5 per cent of performers during
their annual culls, while Morgan Stanley
has embarked on Project Streamline to
uproot junior staff from expensive locations in Manhattan and Jersey City. That
aligns it with Goldman Sachs, which has
been building up back-office operations
in Salt Lake City and Dallas, as well as
Warsaw, Bangalore and Singapore.
Pre-tax profits for the broker/dealer
operations of NYSE member firms fell
nearly $1.7bn to $14.3bn in 2015, the

$146,200
Average bonus last
year, according to
the NYSC. The pool
was $25bn, down
27% from 2006

$1.7bn
Decline in pre-tax
profits for the
broker-dealer
operations of NYSE
member firms

NYSC data show. After a decent first half


and a solid third quarter, the industry
reported a small loss of $177m in the
fourth quarter. Thomas DiNapoli, New
York State Comptroller, said the figures
for 2015 reflected a challenging year.
He did not hold out much hope of
improvement this year.
Paul Sorbera, president of Wall Street
search firm Alliance Consulting,
pointed out that bonuses were determined on a case-by-case basis and cautioned that average figures could be
misleading. Even within teams,
bonuses varied widely. He cited a group
of about 20 traders. Within that group,
some people got zero while other people
got paid up to 40 per cent.

The doldrums
Unceasing malaise
in shipping markets
Clarkson, the largest shipbroker, has
struck an intensely gloomy tone over the
outlook for shipping markets, warning
of unprecedented challenges with no
end in sight, writes Joel Lewin.
Andi Case, chief executive of the
UK-listed group, said: The challenges
witnessed across the global shipping
markets have continued into 2016. The
macroeconomic environment remains
very uncertain.
Shipbroking fees have been squeezed
by the dire state of the container and dry
bulk shipping sectors, while the finance
business has been pressed by cutbacks
from companies hurt by low oil prices
though Clarkson posted a 26 per cent
rise in profits last year to 31.8m, largely
due to the 281m acquisition of
Norwegian rival RS Platou.
Much of the shipping industry has
been under intense pressure, with rates
often falling below operating costs.
Container ships have been struggling
amid oversupply and anaemic trade
growth. In February Maersk, the largest
container shipping group, reported a net
loss of $2.5bn for the fourth quarter and
said conditions were worse than during
the financial crisis.
The Baltic Dry index this year fell to its
lowest level since it was created.

Jennifer
Hughes
It is not easy being a bear on China at least, not this
month. Data, events and even market moves are conspiring to complicate what, just a month ago, looked to be a
relatively simple story. And yesterday the most hard-tofudge part of the sell China case, namely rising capital
outflows, also confounded forecasts by slowing sharply.
Bears may shrug, but they should tread carefully, too.
Chinas foreign exchange reserves fell by $28.6bn last
month, far less than the near-$100bn run-rate of the past
few months. The lunar new year holiday in the middle of
February will have played a part but market moves also
suggest the country has succeeded in diluting Januarys
strong sell China narrative. The offshore renminbi
considered the gauge of international sentiment has in
the past four weeks spent more time trading more strongly
against the dollar than the tightly controlled onshore rate
than at any time since last Augusts surprise devaluation.
Shorting the renminbi is based on the argument that
China is running out of liquid reserves with which to combat identifiable and intensifying capital flight. Both parts
of that case were also dented at the weekend. The Peoples
Bank of China asserted that its reported reserves are in fact
liquid, in an effort to quell doubts. It may or may not succeed. But few will be able to as easily shrug off research
published this week by the Bank for International Settlements that suggested third-quarter outflows last year
that is, immediately after the August brouhaha were due
mostly to companies paying off dollar debt, and to a reduction in offshore deposits, than a scramble for the exits by
panicked mainlanders.
Selling the renminbi is only one way of expressing negative views on China and it is not the most popular since
the PBoC intervened heavily in January, sharply raising the
cost of the trades. China is not likely to do anything if hedge
funds instead sell proxies such as the Australian dollar or
the South Korean won, as they have been doing. But if
Chinas reserves are as liquid as it says and the outflows do
not return to their previous rate, the bears will have to
think more carefully about their base case. What promised
to be one of the few big trends of the year namely selling
China now needs careful watching.

Renminbi onshore-offshore
spread

0.05
0.00

-0.05
-0.10

Sep

2015

Source: Bloomberg

jennifer.hughes@ft.com
Alamy

France and Britain move to quash


revolt at EDF over UK nuclear project
MICHAEL STOTHARD PARIS
KIRAN STACEY AND JIM PICKARD
LONDON

Iger hails Walt Disneys


diversification efforts
Walt Disney chief Bob Iger, pictured,
says the group has diversified revenue
thanks to investments in content and
brands in anticipation of the day when
ESPNs growth rates slow. We
concluded that the old content is king
adage was absolutely true, he says.
Broader horizons i PAGE 17

Paris and London yesterday redoubled


their support for a nuclear project in
the UK, attempting to quash a rebellion
at project leader EDF weeks before the
final investment decision.
The French utility was thrown into turmoil after Thomas Piquemal, chief
financial officer, resigned, saying he felt
that plans for the 18bn Hinkley Point
project threatened the groups future.
He is one of a growing group arguing
that the project will be disastrous for
EDF. One board member told the Financial Times: Piquemal is not the only
one. Many on the board feel the same.

The two governments and EDF yesterday launched a co-ordinated


response in public and behind the
scenes to kill the rebellion, highlighting
their commitment to push through the
deal at the highest levels.
For the French government, which
owns 85 per cent of EDF, the deal is crucial in maintaining the competencies of
the French nuclear sector and supporting its suppliers at a time when export
orders are hard to come by.
The UK government sees Hinkley as a
crucial part of its future energy mix, set
to provide 7 per cent of UKs electricity
needs when it is up and running in 2025.
Some people close to EDF were briefing that Jean-Bernard Lvy, the chief
executive, deliberately put Mr Pique-

mal in a position where he would have to


quit. One person close to the UK Department of Energy and Climate Change
said the finance chief was a thorn in the
side of the deal . . . Its good news that
hes run out of road, not bad.
The move to push ahead potentially
sets EDF up for a fight with its unions,
which have been among the most vocal
opponents of the Hinkley Point project.
But people close to the situation say
the company is likely to push ahead
regardless. Peter Atherton, a utilities
analyst at Jefferies, said: This just
shows how determined the company is
to drive this through.
Editorial Comment page 10
Lex page 14
Analysis page 18

Companies / Sectors / People


Companies

Al Noor Hospitals...................................14
Albertsons...................................................26
Alcoa...............................................................27
Alibaba...........................................................16
Alliance Consulting.................................15
Altera..............................................................16
Altice...............................................................14
Amazon................................................1,10,14
American Express.....................................4
Amgen............................................................12
Anadarko......................................................16
AngloGold Ashanti.................................27
Apple............................................................1,16
Areva.........................................................14,18
AstraZeneca................................................12
Atlas Mara....................................................11
Axis Bank....................................................20
BASF...............................................................14
BNP Paribas...............................................16
BP.....................................................................26
BT.....................................................................26
Banca Etruria.............................................16
Bank of America.................................15,16
Bankia.............................................................16
Barclays.....................................................11,11
Barrick Gold...............................................27
Bats Global Markets.............................26
Bharat Heavy Electricals...................20

Bimbo...............................................................4
Bridgewater................................................26
Bristol-Myers Squibb.............................12
Burberry...........................................................1
CF Industries.............................................27
CGN.................................................................18
Cablevision..................................................14
Celldex Therapeutics............................27
Charter Communications....................14
Chesapeake Energy...............................27
Chevron.........................................................16
Cisco Systems...........................................26
Citigroup....................................................4,11
Clarkson.........................................................15
Coal India....................................................20
Coca-Cola....................................................26
Comcast Corp............................................14
Didi Kuaidi...................................................16
Dow..................................................................14
DuPont...........................................................14
Dunkin Brands.........................................27
EDF.................................................10,14,15,18
ESPN...............................................................17
Elevate..........................................................26
Eli Lilly...........................................................12
Etsy.................................................................26
ExxonMobil...........................................16,26
Ford...................................................................4
Fresnillo........................................................27

The Financial Times Limited 2016

General Electric..........................................4
Goldman Sachs...................................15,16
Google......................................................16,16
HSBC............................................................1,16
Huawei...........................................................16
Hutchison China MediTech...............12
IBM..................................................................26
IDBI Bank....................................................20
IEX ....................................................................9
InterContinental Hotels......................27
JHL Biotech................................................12
JPMorgan.....................................................16
Johnson & Johnson...............................26
Just Eat...................................................14,27
Kinross Gold...............................................27
LCH Investments....................................26
Larsen & Toubro....................................20
Lloyds Banking Group.........................16
Lucasfilm.......................................................17
Maersk............................................................15
Marathon Oil ............................................16
Marvel.............................................................17
Mediclinic.....................................................14
Microsoft.......................................................16
Mitie................................................................27
Monsanto.....................................................14
Morgan Stanley........................................15
Murphy Oil..................................................27
NTPC.............................................................20

NYSE.................................................................9
Nasdaq ...........................................................9
National Grid..............................................18
Netcare ........................................................14
Newmont Mining.....................................27
ONGC.............................................................20
Old Mutual............................................14,27
Oracle.............................................................16
Pershing Square......................................26
Pfizer...............................................................12
Pixar................................................................17
Procter & Gamble.....................................4
Proteostatis Therapeutics.................26
Qualcomm....................................................16
RS Platou......................................................15
Randgold......................................................27
Remgro..........................................................14
Rio Tinto......................................................27
Robey Warshaw..........................................1
Royal Bank of Scotland.......................16
SWIFT..............................................................11
Sanofi..............................................................12
Schroders.....................................................27
Snapdeal.......................................................16
SoftBank.......................................................16
Solera.............................................................26
SoulCycle.....................................................26
Spire................................................................14
Sprint..............................................................16
St Jamess Place......................................27

Time Warner Cable ..............................14


Uber ...............................................................14
Vodafone................................................16,26
Walt Disney.................................................17
Worldpay......................................................27
WuXi AppTec.............................................12
Xamarin.........................................................16
Xilinx...............................................................16
ZTE..................................................................16
Zai Lab...........................................................12

Sectors

Banks.............................................11,15,16,20
Chemicals.....................................................14
Energy.........................................15,18,20,26
Financial Services.......................15,20,26
Financials..................................15,20,26,28
Food & Beverage..............................14,26
Health.............................................................14
Healthcare...................................................26
Industrial Goods......................................20
Industrials...................................................20
Media........................................................14,17
Mining...........................................................20
Oil & Gas......................................................26
Personal & Household Goods........26
Pharmaceuticals...........................12,14,26
Retail..............................................................26
Retail & Consumer...........................14,26
Technology.......................................6,16,26

Telecoms................................................16,26
Transport................................................14,15
Travel & Leisure..........................14,17,26
Utilities...........................................................18

People

Ackman, Bill...............................................26
Ballmer, Steve...........................................16
Bock, Kurt....................................................14
Case, Andi....................................................15
Catmull, Ed..................................................17
Cooper, Darren............................................2
Dongshan, Zheng....................................18
Du, Samantha............................................12
Durnell, Peter...............................................2
Gulen, Fethullah.........................................3
Hemphill, Bruce........................................27
Iger, Bob........................................................17
Jordanov, Racho.......................................12
Ka-shing, Li.................................................12
Lasseter, John...........................................17
Lin, Rose.......................................................12
Lvy, Jean-Bernard................................18
Malone, John..............................................14
Nadella, Satya............................................16
Paulson, John............................................26
Piquemal, Thomas.......................14,15,18
Rupert, Johann.........................................14
Son, Masayoshi.........................................16
Sopher, Rick...............................................26

Week 10

-0.15
Mar
16

The offshore
renminbi has in
the past four
weeks spent more
time trading more
strongly against
the dollar than the
onshore rate than
at any time since
the devaluation

16

FINANCIAL TIMES

Tuesday 8 March 2016

COMPANIES
INSIDE BUSINESS

Telecoms

SoftBank to split in 2 to target growth


Group to separate Japan
unit in plan to transform
into global conglomerate

SoftBank will split its Japanese business


from more volatile but potentially faster
growth global operations that include
stakes in Chinese ecommerce group
Alibaba and US telecoms operator
Sprint.
The Tokyo-based telecoms and
technology group said its global operations will be led by Nikesh Arora, the
former Google executive, while Ken
Miyauchi will head its domestic business in Japan.

About $81bn of investments in telecoms, technology and internet businesses held at the group level will be
transferred to each company by the end
of the year.
For the global business, this will
include Starburst, a holding company
for the majority of the shares in Sprint,
and its one-third stake in Alibaba.
The shift in corporate strategy comes
as Masayoshi Son, SoftBanks founder
and chief executive, considers the next
stage in its growth. He wants to transform it from a Japanese group with overseas holdings into a more fully fledged
international conglomerate.
In the companys last annual report,
Mr Son wrote that the reality is that
most internet companies in Japan find it
very challenging to develop their busi-

Technology

Banks

DANIEL THOMAS
TELECOMS CORRESPONDENT

nesses overseas. He blamed this on trying to apply Japanese business models


on local markets, where cultures are
completely different.
He said Mr Arora would help drive the
companys transformation into a truly
global company. The companys international business has struggled in the
past year.
Shares in Alibaba have fallen about 15
per cent in the past 12 months, while
Sprints stock has dropped more than a
quarter in that period in a fiercely competitive US telecoms market.
Sprint faces a tough battle to cut costs,
lower debt and add subscribers, which
has weighed on the stock of SoftBank.
Shares in the company are down by
about a fifth in the past year, including a
bounce in the past month after it

$81bn
Investments held at
group level that will
be transferred to
the two companies

$4.4bn
SoftBanks planned
buyback helped lift
shares still down
1/5 in the past year

announced a Y500bn ($4.4bn) share


buyback. Alibaba and Sprint are the two
largest overseas holdings for SoftBank,
although it has invested in other large
technology companies including mobile
gaming group Gung-ho, Indian online
retailer Snapdeal and Didi Kuaidi,
Chinas largest ride-hailing app.
SoftBank has also invested in hundreds of smaller start-ups, a strategy
that was being overseen by Mr Arora, in
a bid to replicate the success it had as an
early investor in Alibaba.
The Japanese company has a more
stable domestic telecoms business with
close to a third of the countrys mobile
market having acquired the former
Vodafone business almost a decade ago
alongside stakes in other local companies such as Yahoo Japan.

Microsoft
looks beyond
Windows
RICHARD WATERS SAN FRANCISCO

Microsoft is taking its biggest step


beyond the Windows operating system
since chief executive Satya Nadella
started a rethink of its core software
strategy two years ago.
The company was due to announce
yesterday that it would put one of its
main products on Linux for the first
time, selling a version of its database
software to run on the open source operating system.
Until now it has only sold the product,
called SQL Server, to run on Windows,
reflecting the tight integration Microsoft has used to protect revenues from
its own operating system.
I think it was a religious thing, Merv
Adrian, an analyst at Gartner, said of
Microsofts unwillingness under Steve
Ballmer, Mr Nadellas predecessor, to
move beyond Windows. We would love
to have seen this Linux thing five years
ago, we were telling them thats what
they should do.
Mr Ballmer had taken a forceful stand
against Linux, at one point describing
the code as a cancer eating into the
commercial software business.
However, Mr Nadella said the change
in strategy would give Microsoft a shot
at the bigger part of the database market
that does not run on Windows, and
denied that it would lead to a cannibalisation of Microsofts operating system
as customers opted for Linux instead.
I want us to be aggressive in going
after all opportunities, he said. Asked if
this was a direct attack on Oracle, the
leading database software company, he
added: They are the incumbents, absolutely. The new software is not scheduled for release until mid-2017.
In previous moves beyond Windows,
Mr Nadella has released the Office 365
service to run on mobile devices using
the Android and iOS operating systems
from Google and Apple. Last week,
Microsoft also bought Xamarin, which
makes tools for developers to write apps
running on Android and iOS.
Those departures were prompted by
Microsofts failure to make a dent in the
smartphone market with Windows,
forcing it to look at other ways of reaching consumers on mobile devices. By
contrast, the SQL decision comes from a
position of strength.
Microsoft overtook IBM to move into
second place in the $32bn a year database market between 2011 and 2014,
according to research group Gartner.

JPMorgan chokes off finance to new coal projects


PILITA CLARK
ENVIRONMENT CORRESPONDENT

JPMorgan Chase, one of the worlds biggest banks, is to stop direct financing of
all new coal mines and coal power
plants in rich countries in the wake of
the global climate accord agreed in
Paris in December.
The US bank has included coal projects
alongside child labour on a list of prohibited transactions in the new version
of its environmental and social policy
published on its website.
We believe the financial services sector has an important role to play as governments implement policies to combat
climate change, the policy says.
JPMorgan is one of the top 10 backers
of coal-fired power plants and its previous limits on coal financing were confined to contentious operations such as
mountain top mining, where large parts
of a mountain or ridge were removed to
extract coal.
The bank will maintain corporate
lending relationships with big mining
groups that produce a range of commodities including coal, but will not

Legal Notices

provide specific project financing to


develop new coal mines.
It will also avoid financing new coalfired power plants in more than 30 highincome OECD countries.
The decision comes as the coal industry confronts a gloomy landscape of
tumbling commodity prices, falling
share values for producers and the
bankruptcy of some well-known US
miners, including Walter Energy and
Alpha Natural Resources.
Several large US and European banks
decided to limit coal-related lending in
the lead-up to the COP21 meeting in
Paris, where nearly 200 countries
agreed to cut greenhouse gases and stop
global average temperatures rising
more than 2C from pre-industrial times.
But environmental groups said
JPMorgans decision was still a significant step.
This is the first major policy change
weve seen following the Paris agreement, said Ben Collins, a climate campaigner at the Rainforest Action Network advocacy group in San Francisco.
Its a step away from financing coal,
which we see as the dirtiest and most

US bank intends
to stop financing
the construction
of such coal
power stations
as this one in
Jnschwalde,
Germany
EPA/Patrick Pleul

carbon-intensive fuel, he said, adding it


would be better if banks immediately
halted all support for coal mines and
power plants.
The move comes as investors have
started filing shareholder resolutions
with large US energy companies urging
them to explain how they plan to compete in a global economy shifting away
from fossil fuels.
Shareholders want companies such as
ExxonMobil and Chevron to stress test
their business plans against the Paris
accords goal to reduce carbon pollution
and limit global temperature rises.
Other companies such as Marathon
Oil and Anadarko are being asked to disclose stranded asset risks, or the
potential that fossil fuel reserves will
become unusable.
These resolutions are a powerful signal that the world is shifting to a clean
energy, low-carbon global economy, and
that fossil fuel companies need to be
ready, said Mindy Lubber, president of
the non-profit group Ceres, which
helped co-ordinate the filings. But it is
not clear any of them will get approval
from a majority of shareholders

FINANCE

Patrick
Jenkins

Banks gain help on the


scandal-strewn road
to better behaviour

or banks, it has been a costly few weeks. In January, Goldman Sachs paid $5.1bn to settle accusations that it mis-sold mortgage-backed securities. Last month, Spains Bankia gave 2bn to
investors who were mis-sold shares in its disastrous flotation. Days later, Lloyds Banking Group set aside
another 2.1bn to compensate customers who were missold payment protection insurance.
There is more to come. Other banks, including Royal
Bank of Scotland, have yet to pay out over the MBS scandal, which relates to the fraudulent repackaging of mortgages pre-2008. Britains PPI affair already projected to
cost UK banks more than 30bn has two years to run
before regulators are set to call time on claims.
This plethora of fines and compensation comes on top of
other scandals: Libor and exchange-rate manipulation,
rogue trading, large-scale money laundering and sanctions breaches. Banks wrongdoing can seem without end.
But this week, in the UK, a new body will try to convince
the world that banks behaviour really is changing. The
Banking Standards Board, created last year to vet the
industrys ethics, will today reveal its first annual review at
a conference (organised jointly with the Financial Times).
The set-up of the BSB is not ideal. It is a voluntary body
created and funded by the banks. It will not publish data
about individual lenders and their behaviour. There will
be no naming and shaming. All of this could fuel public distrust that this is less about real ethical reform than an
attempt to head off tougher statutory oversight.
All the same, the BSB does appear a serious body. It has
31 members, an impressive board and it is probing banks
behaviour at several levels. That should encourage bank
boards to be more inquisitive about what is going on within
their institutions. If enough banks voluntarily disclose the
results of their BSB assessments, as the body hopes, there
will be a de facto naming and
shaming of those that do not.
If enough banks
The UKs BSB idea is not
unique a similar operation disclose their
exists in the Netherlands,
BSB results, there
and the US and France are
eyeing the model. Whether will be a de facto
such a body could have preshaming of others
vented scandals such as
Libor or PPI is doubtful. But
the BSB is not acting alone. Many banks themselves have
changed their senior management since scandals and
many have spoken of the need for higher ethical standards. If an outside body can help them, so much the better.
This effort complements a slab of regulatory reforms.
Tougher conduct regulation means wrongdoers are more
liable to fines, dismissal or jail. Pay rules that limit bonuses
cut the incentive to rack up unsustainable profits.
But much more could still be done. Here are four additional problems that are ripe for tackling:
Big banks tend to behave badly. The likes of Bank of
America, JPMorgan Chase, BNP Paribas and HSBC have
paid some of the biggest fines. That must in part be
because they are too big to control.
Stiff competition makes matters worse. According to
new research from Rotterdam School of Management,
Erasmus University, unethical behaviour can become
endemic in any industry that is highly competitive, as long
as the miscreants make money.
Whistleblowing is still a rarity. If, instead, it was actively
encouraged and rewarded by employers, rogue staff and
bad practices could be weeded out more easily.
Clients are still seen as prey. In investment banking,
conflicts of interest abound, leaving some clients disadvantaged relative to others, or to the bank itself. In retail
banking, there has been a persistent culture in some economies of stuffing clients with poor investments. In Italy,
a Banca Etruria customer killed himself after losing his
savings in a duff bank bond. Bankias IPO compensation
followed allegations that clients had been persuaded to
buy the shares on false pretences. In the UK, the PPI affair
should have taught banks an expensive lesson, yet other
products with dubious credentials persist from scandalously expensive loans, to black-box bundled accounts.
If initiatives such as the BSB can address such issues,
they can help reset the culture of banking. The tricky bit
will be to hold the discipline when boom times return
and the focus shifts again from ethics to profits.
patrick.jenkins@ft.com

Telecoms

ZTE share trading suspended on back of US probe


CHARLES CLOVER BEIJING

Businesses For Sale

Business for Sale, Business Opportunities, Business Services,


Business Wanted, Franchises
Runs Daily

.........................................................................................................................................................................................................................................................................

Classified Business Advertising


UK: +44 20 7873 4000 | Email: acs.emea@ft.com

Trading of shares in ZTE was suspended in Hong Kong and Shenzhen


yesterday after news of a US investigation into whether Chinas secondlargest telecommunications equipment maker violated US controls on
exports to Iran.
ZTE said it was co-operating with the US
authorities. Reuters reported at the
weekend that the US Department of
Commerce was set to place export
restrictions on the company. ZTE sells
8-10 per cent of the worlds telecoms
equipment, according to Nomura, and
counts Iran among its customers.
ZTE has been working with relevant
US government departments on investigations, maintaining communication
with relevant departments and is committed to fully address and resolve any
concerns, it said in a statement.
The company added that it would

continue with normal operations while


it conducted internal assessments.
As a responsible business, ZTE
strives to ensure all operational activities adhere to international trade practices and the laws and regulations of
host countries, it said.
The company yesterday suspended
trading in its shares, according to statements to the Hong Kong and Shenzhen
stock exchanges, but did not explain
why.
ZTEs Hong Kong-listed shares closed
up 3.5 per cent last Friday, but are down
20 per cent so far this year.
Leping Huang, telecoms and technology analyst at Nomura in Hong
Kong, said notice from the Department
of Commerce, expected today, should
clarify the scope of the restrictions.
Nomura does not expect any impact
on product sales in the US, but says
restrictions would probably require any
company shipping US-made parts or

equipment to ZTE to first obtain a


licence from the Department of Commerce.
In an analyst note, Nomura estimated
that 10-15 per cent of the components
used in ZTEs telecom equipment and
smartphones were supplied by USbased vendors as of last year. It said

Chinas ZTE sells 8%-10% of the


worlds telecoms equipment

major suppliers include Qualcomm,


which supplies smartphone chips, and
Xilinx and Altera for base station chips.
A person briefed by ZTE on the situation said the company does not foresee
an immediate impact on production
because it has just finished procurement of US parts for 2016.
However, if restrictions remained in
place over the long term, ZTE may experience somedisruptionto its supplychain.
This is not the first time the company
has run into trouble with US authorities.
In 2012 ZTE and Huawei, its larger
domestic competitor, were informally
blocked from selling telecoms infrastructure in the US and barred from
investing in US companies after the
House Permanent Select Committee on
Intelligence accused both of spying on
behalf of Chinese authorities.
Both companies have long rejected
the spying accusations.

Tuesday 8 March 2016

17

FINANCIAL TIMES

COMPANIES

Interview. Bob Iger

Disney all fired up as era of change beckons


Chief invests in new brands to
offset slowing growth at core
cable and satellite networks

Divisional earnings
Breakdown of Disney operating profits ($bn)
2010

0.7

MATTHEW GARRAHAN
GLOBAL MEDIA EDITOR

When Walt Disney chief executive Bob


Iger revealed last summer that there
had been some modest subscriber losses
at sports cable network ESPN he did not
expect the turbulence that followed.
The worlds most profitable cable network and Disneys largest division had
appeared immune from the impact of
cord-cutting the cancellation of a
cable or satellite television subscription
in favour of online alternatives. Mr
Igers comments, which were limited to
Disney and ESPN, triggered a sectorwide sell-off of media stocks. If the
mighty ESPN was vulnerable what hope
was there for anyone else?
But Mr Iger, who recently marked 10
years as chief executive, is not panicking. In a wide-ranging interview at Disneys Burbank headquarters, he says the
company, which last month reported its
best quarter to date, has diversified revenues thanks to its investments in content and brands in anticipation of the
day when ESPNs growth rates slowed.
We concluded that the old content is
king adage was absolutely true, he
says, adding that the shift has strengthened Disneys hand in an era of technological disruption and sweeping changes
in audience viewing habits.
I look at the assets that we bought in
Pixar, Marvel and Lucasfilm, and I look
at ESPN, and I see brands that will hit
bumps along the way because of disruption, but which will be fine long term.
It was clear that ESPNs growth would
slow eventually, he says. Profits at the
network increased in 2015, despite ending the year with 92m subscribers 3m
fewer than the previous year. Were
going to continue to grow ESPN, he
says. Just not at the rate that weve
grown it.
The question is whether the investments in content and new ways of dis-

5.1

1.3

Media networks
Parks and resorts
Studio
Other*

0.4

2015

7.8

3.0

2.0

1.9

Dwindling cable share


Operating profit by division,
2010 (%)

Studio

17

Star Wars: The Force Awakens


was made by Lucasfilm one of
the companies Mr Iger says has
allowed him to cut the risk in
film production

The release of Star Wars: The Force


Awakens last December focused
attention on how Disney uses content
across its businesses, with new
attractions based on the film series
planned at its theme parks and $3bn
of toys and merchandising sold in the
first quarter.
While the movie broke opening
records in the US and Europe, it did
not perform as chief executive Bob

Media
networks

68

Parks and resorts

Other*
Studio

Media
networks

13
13

Parks 21
and
resorts

53

* Includes consumer products and interactive


Source: company

David James/Disney/Lucasfilm via AP

If the Chew fits


China audiences find
Star Wars lacks bite

Other*
6

Operating profit by division,


2015 (%)

Iger had expected in China, the worlds


fastest-growing movie market, where
it grossed $125m less than in the
UK. We thought it would be bigger,
says Mr Iger.
Chinese audiences were not as
familiar with the story because the
original films were not released there
in the 1970s and 1980s. We have work
to do in China in familiarising people
with the film and the franchise. When a
guy gets on a flying vehicle with a
furry character and says, Chewie,
were home, everybody in the US just
starts clapping. In China, they think
Who is Chewie?

tributing ESPN will be enough to offset


any slowdown.
Mr Iger is confident they will, pointing
to the networks inclusion in so-called
skinny bundles cheaper cable subscriptions that have fewer channels
than traditional packages as an example of how the company is responding to
changing consumer behaviour.
ESPN is still a huge profit centre and
it should get a lot of attention, he says.
Its not about whether the number of
subs goes down from 95m to 90m or
85m. Its about whats the long-term
health of ESPN, and to what extent will
ESPN continue to be in demand by consumers. Because if you conclude that it
will be, then well figure out a way to get

it to consumers and consumers will


figure out a way to access it.
Not everyone thinks a slowdown in
ESPN growth will be pain free. Disney
was downgraded by several analysts at
the beginning of 2016 on concerns about
cord-cutting affecting the network.
Growth rates in cable network operating income could continue to be a drag
on the overall company over the coming
quarters even though there is likely to
be some quarterly variation, Kannan
Venkateshwar, a Barclays analyst, said.
The company does not break out
ESPNs individual performance, but it is
by far the largest piece of its cable television division, which in 2010 accounted
for 59 per cent of Disneys $7.59bn oper-

ating income. Cable remains Disneys


largest business but its share of operating income has fallen as others parts of
the group have grown more quickly: in
2015, it accounted for 46 per cent of Disneys $14.68bn operating income as
theme parks, film studio and consumer
products grew at a more rapid clip.
This is due to the intellectual property
Disney now has at its disposal. Marvel
films, such as Iron Man, The Avengers and
Guardians of the Galaxy have added billions of dollars to Disneys top line, while
Disney Animation, which was ailing a
decade ago, has been revived under the
leadership of Pixar founders John Lasseter and Ed Catmull.
Zootopia, Disneys latest release, broke
opening weekend records for an animated film last week while a sequel and
a Broadway version to 2013s smash Frozen are in the works.
With Pixar, Marvel and Lucasfilm, Mr
Iger says he has been able to minimise
the risk in film production.
We used to have huge volatility in
our movie studio. It could make $200m
one year and $800m the next, he says.
Now, there will be some fluctuation,
like a big Star Wars movie in a given year,
but [the returns] are going to be much
more steady. And they will deliver to our
bottom line.
This has not gone unnoticed on Wall
Street, with some analysts suggesting
that market reactions to reductions in
ESPN subscriber numbers may have
been overblown.
It is wrong to overlook the growth
coming from businesses which contribute half of Disneys profits, Jason Bazinet, analyst at Citi, wrote in a note.
As analysts and investors continue to
scrutinise ESPN, Mr Iger says comparisons with other media companies
ignore the breadth of Disneys businesses.
Were not a media company. Were in
the food business, the transportation
business, the vacation business, the
hotel business, the technology business,
the consumer products business, movies, TV, books, games. I believe that we
are very differentiated from the rest of
the companies in our space.

18

FINANCIAL TIMES

Tuesday 8 March 2016

COMPANIES

Temperatures
rise over EDF
nuclear power
station project

Sparks fly

Blairs vision

Renewables and nuclear


central to future of energy

Finance chief s exit highlights fears


that Hinkley Point scheme is too risky
MICHAEL STOTHARD PARIS

Tensions inside EDF over its plans to


build a flagship nuclear power station in
the UK were laid bare yesterday, after
the finance director quit his job in protest and claimed the project could
threaten the companys future.
Thomas Piquemals dramatic exit
highlights how a number of senior executives at the French state-controlled
utility have long wanted to either delay
the 18bn Hinkley Point C project in
Somerset or scrap it completely. They
say the plans look too risky for a group
that is grappling with difficult European
markets and a large debt load.
But Jean-Bernard Lvy, EDFs chief
executive, is determined to push ahead
with Hinkley, and has the backing of the
French and UK governments. A final
investment decision by EDFs board
could come as early as next month.
Mr Piquemal, who joined EDF six
years ago, quit on Thursday after a
strong disagreement with Mr Lvy.
One person familiar with Mr Piquemals thinking said: He could not in
good conscience remain at the company
when it was pursuing a strategy [in
pushing ahead with Hinkley Point C]
that put the entire company at risk.
Mr Piquemal made no public comment, but he is not the only EDF insider
to have spoken out against Hinkley.
Another board member, who declined
to be identified, told the Financial

Times that the company risked everything and that there were a number of
directors concerned about the dangers
of the project.
The CFE-CGC union, which has a seat
on EDFs board, also said last month
that the Hinkley project could put EDF
in danger.
There are two main reasons for the
concerns. First, the reactor technology
due to be used at Hinkley the socalled European Pressurised Reactor
is unproven, and has been beset by
problems elsewhere on the continent.
An EPR power station being built by a
consortium led by Frances Areva in
Finland the first European country to
order the technology is nine years
behind schedule and more than 5.2bn
over budget. Meanwhile, an EDF-led
EPR project at Flamanville in France is
six years late and 7.2bn over budget.
The concern is therefore that, while
the Hinkley project may be profitable if
all goes according to plan, the risks of
multibillion-euro construction delays
are significant and could put the company under severe financial pressure.
The second is that EDF is already in a
weakened state. Wholesale electricity
prices in Europe have fallen sharply
over the past year, because they are
linked to the value of crude oil. Meanwhile, the opening up of the French
market to competition has eroded
EDFs once near-monopoly status.
Shares in the company, which fell

Danger zone: critics say the 18bn Hinkley C project carries the risk of multibillion-euro construction delays

EDF
Net debt (bn)
40

Average market cap (bn)


120

Free cash flow (bn)


10
8

100

30

80

60

20

10

40

-2
-4

20
2005 06 07 08 09 10 11 12 13 14 15

2005 06

07

08

09

10

11

12

13

14

15

Sources: company; Thomson Reuters Datastream

7 per cent yesterday, have more than


halved over the past year. EDF borrows
money every year just to pay its dividend, and the groups 37bn of net debt
dwarfs its 21bn market capitalisation.
In isolation, the Hinkley project may
not be a terrible idea, said Martin
Young, analyst at RBC Capital Markets.
But if you have not got the money and
you have problems at home you should
not bet a whole company on a project of
this magnitude.
Mr Piquemal suggested that EDF
should delay any final investment decision on Hinkley for three years, according to people with knowledge of the conversation.
By this point the new reactor in Flamanville should be connected to the
electricity grid, giving EDF a clearer
understanding of the construction risks
involved with the EPR technology. The
company could also use the time to sell
assets, as well as integrate the reactor
business of Areva, which EDF is due to
do under a rescue plan for the rival
nuclear group.
But the chances of this three-year
delay happening are unlikely, in spite of
the internal tensions at EDF.
The French and UK governments yesterday reiterated their support for Hinkley. We renew our full support for the
Hinkley Point project, said Emmanuel

Macron, the French economy minister.


We continue to fully support the
project, said a spokesman for David
Cameron, UK prime minister.
A statement by Mr Levy was also
clear. With the support of its shareholder, the state, EDF can confirm that
it is looking to invest in two reactors at
Hinkley Point [C], he said, adding it
would happen in the near future.
There are three reasons for Pariss
support, according to people familiar

If you have not got the


money . . . you should not
bet a whole company on a
project of this magnitude
with the situation, which go beyond the
financial and into the strategic.
First, Paris believes that Hinkley will
ultimately be profitable for EDF, which
has a 66.5 per cent stake in the project,
given price guarantees agreed with the
UK government on the electricity supplied by the nuclear power station.
Second, the project is important for
Frances nuclear industry, after the 2011
Fukushima disaster reduced international demand for new reactors.
Third, France needs export orders to

In May 2006, Tony Blair stood in


front of an audience of business
leaders in London and told them
the UK needed a new generation of
nuclear power stations.
The then prime minister warned
that failing to build them would be
a serious dereliction of duty,
leaving the country heavily
dependent on overseas gas and
drifting short of its targets to
combat global warming.
Since then, Mr Blairs basic vision
of an energy future where
renewables provide much of
Britains electricity, underpinned by
a fleet of modern nuclear power
plants, has remained largely
unchanged. Renewables and
nuclear are central planks of efforts
to overhaul Britains creaking
energy infrastructure, and make it
compatible with goals to reduce
emissions of carbon dioxide by
phasing out coal-fired stations.
If EDFs Hinkley Point C nuclear
power station comes online in 2025,
as proposed, it will supply about
7 per cent of the UKs electricity
needs from that point. Ministers
hope it will also be the first of up to
eight new nuclear power plants,
from Wylfa in Wales to Bradwell in
Essex. According to figures from
National Grid, which runs Britains
power network, a green energy
future would see about one-fifth of
the countrys electricity coming
from nuclear energy by 2035-36.
While that is not a major change
from the amount produced today,
National Grid said it would require
a robust new-build programme.
If Hinkley Point is delayed or
scrapped it leaves the government
with two broad options, according
to analysts. The first is to go down
the same route as the German
government and encourage more
renewables while investing in new
gas power stations as a back-up.
The second is to expedite other
nuclear projects, such as the one at
Wylfa and led by Hitachi, which
plans to use a different technology
to that proposed at Hinkley Point.
Kiran Stacey

maintain its competence in the nuclear


sector until the time when it has to
renew its 58 reactors, which provide
two-thirds of the countrys electricity.
EDF faces an estimated 55bn bill in
the coming decade just to increase the
life expectancy of the 58 nuclear power
stations from 40 years to 50. It requires
the expertise to do that and then eventually to build new ones, and Hinkley is
key to this.
CGN, the Chinese nuclear group that
has a 33.5 per cent stake in Hinkley, also
renewed its support for the project.
Zheng Dongshan, CGNs senior vicepresident, said EDF informed the Chinese company of Mr Piquemals resignation, adding: We fully support this
project and we are committing our full
efforts to it.
Turmoil over Hinkley could, however, provide an opening for China. One
diplomat said EDFs hesitation could be
an opportunity for CGN to accelerate its
European strategy.
CGN hopes to build a reactor at EDFs
Bradwell site in the UK using its
Hualong One technology. If the EPR
technology at Hinkley became a fiasco,
it might strengthen CGNs case.
Additional reporting by Kiran Stacey,
Jim Pickard and Lucy Hornby
See Editorial Comment
See Lex

Questions swirl behind rare resignation


INSIGHT

Nick
Butler
Thomas Piquemal, the finance director
of EDF, has performed a significant
public service by resigning and
focusing attention on the continuing
problems around the UKs Hinkley
Point nuclear project in Somerset.
I cannot remember the last occasion
when the CFO of a big company
resigned over an issue of policy. The
event is certainly rare and can
only increase the pressure on the
French companys chairman, JeanBernard Lvy.
There are several questions behind
the resignation.
Should EDF proceed with a new
investment in the ill-starred EPR
reactor technology before one of the
existing plants at Flamanville in
northern France or Olkiluito in Finland
is completed and working?
Why has the company failed to
publish the detailed internal reports
on Flamanville?

Do the experienced technical staff of


EDF still support the EPR programme?
Or have they joined the trade unions in
seeing Hinkley as a very significant
additional risk to the survival of the
company.
Should EDF sell parts of its profitable
nuclear reactor fleet in the UK to fund
the investment? Should Hinkley
proceed before those sales have been
completed?
And has EDF been completely open
with its Chinese investment partners
about the Hinkley project?
The stakes in all this are very big,
starting with the reputation of the
company and stretching into the future
of nuclear power not just in Britain but
in France itself.
If the new generation EPR cannot be
built the company will have to come up
with an alternative design in short

The group says criticism is


hostility to nuclear power
or France it can hardly
say that of Piquemal

order. Despite repeated life extensions,


the reactor fleets are reaching the
moment when replacement will be
essential.
EDF tends to dismiss any criticism
or questioning of Hinkley as being
driven by hostility to nuclear power,
or to France.
It can hardly say that about Mr
Piquemal, who is the product of one of
the best schools in France, the Ecole
Suprieure des science conomiques et
commerciales.
He has struggled for six years to
bring order to the chaos of EDFs
finances. He will not be out of a job
for long.
A resignation like this is not usually
the end of the story. It will be difficult
for Mr Lvy and the board to press
ahead regardless. All the questions
above and more will have to be
answered.
Mr Piquemals departure makes the
postponement of Hinkley more rather
than less likely.
For that service he deserves the
thanks not just of EDFs shareholders
but also of UK energy consumers, who
could yet escape paying the excessive
price of an unproved project.

Tuesday 8 March 2016

FINANCIAL TIMES

19

20

FINANCIAL TIMES

Tuesday 8 March 2016

COMPANIES

Privatisation. Budget boost

New Delhi kick-starts $8bn divestment drive


sell ONGC with the oil price where it is,
so why even try?
Many PSUs are also heavily unionised, prompting political battles when a
sale is announced.
As a result, most sales happen late in
the financial year, leaving little time to
hit targets.
Announcing a number at the end of
February and then only deciding if you
are going to meet it or not nine months
later is hardly fiscal responsibility, says
Rajeev Malik, a CLSA economist.
Indias use of the quasi-government
LIC as a backstop is often criticised, but
it at least means that sales are likely to
succeed, since LIC is forced to buy much
of the available offer and often even
makes a tidy profit, selling holdings off
again if markets rise.
Put this together and some observers
are confident that India will, finally, hit
its goal next year.
As long as there is political will, the
divestment target for next year should
be no problem, says Sunil Sanghai,

Pledges to trim Indias bloated


state sector are being met with
scepticism after past failures
DAVID KEOHANE AND JAMES CRABTREE
MUMBAI

Arun Jaitley, Indias Minister of Finance,


appeared upbeat after last weeks
annual budget, pledging to meet what
he called an ambitious target to sell
Rs565bn ($8.4bn) of stakes in statebacked companies over the next year.
Probably in March, well have one or
two more, he said of the first of a spate
of sales, set to include holdings in major
state-backed groups including energy
explorer Oil and Natural Gas Corporation and miner Coal India.
Pushing these through would help Mr
Jaitley hit a tough government budget
target next year. More importantly, the
goal embodies wider hopes that India
may finally accelerate its previously
timid privatisation efforts, and slim its
bloated state sector.
Such hopes were greeted with a sense
of both scepticism and dj vu last week
however, given Indias record of repeatedly flunking previous asset-sale goals.
Last years effort was especially poor,
achieving barely one-third of the targeted amount. Worse, much of that was
sold to Life Insurance Corporation of
India, a state-backed insurer, meaning
Indias privatisation programme is often
derided as merely a financial transfer
between state bodies.
Mr Jaitley blamed the failure on
inauspicious market conditions, especially for the energy and commodity
groups that dominate Indias so-called
public sector undertakings (PSUs).
Partly as a result, this years goal has
been lowered, making it easier to hit.
Yet doubts remain. The problem is
they are scared any sale will be accused
of being done at too low a price, losing
money for the exchequer, and so they
delay, says Ila Patnaik, an economist at
the National Institute of Public Finance
and Policy, and until recently an adviser
in Indias finance ministry. It is hard to

If they move to having a


regular calendar of sales it
can be met. If not, the old
issues will crop up again
Workers at a depot owned by a unit of Coal India, the worlds largest producer, which New Delhi is likely to target as part of its asset-sales goal Sanjit Das/Bloomberg

Indias annual divestment targets v actual amount raised


Rs bn

FY2017 disinv. target: Rs565bn ($8.4bn),


including Rs205bn of strategic stake sale

Disinvestment, budgeted
Actual

700
600
500
400
300

2.2x

200
100
0

2012
Source: Credit Suisse

13

14

15

16

17

make out exactly what their strategy is


to hit the target.
But Jayant Sinha, Minister of State for
Finance, says this year marks a paradigm shift a change indicated by
Indias decision to mothball its old
department of divestments and launch
a newly renamed department of investment and public asset management.
The government has a healthy pipeline of a dozen or more PSUs from which
to sell off stakes, ranging from Bharat
Heavy Electricals to energy group
NTPC. It also owns parts of valuable private sector groups, including lender
Axis Bank and engineer Larsen & Toubro, worth more than $7bn.
Equally, Mr Sinha puts emphasis on

strategic sales. This could mean full


privatisations which India has found
hard to deliver over the past decade.
Equally, it could mean moves to bring
companies into majority private ownership, such as government-backed IDBI
Bank, or to float unlisted public bodies.
This will help to transform the way
these assets are run, not just raise
revenue by selling parts of them, Mr
Sinha says.
Even so, considerable barriers
remain, with investors pulling back
from emerging markets and commodity
prices at rock bottom. There are very
few big things they can sell, says the
head of one global bank in Mumbai.
There is almost no chance they can

managing director of HSBC in India.


More doubtful, however, is whether
Indias divestment programme can be
viewed as akin to Chinas push to reform
its state-owned enterprises, using private investors to improve efficiency and
reduce state subsidies.
Other observers have more basic suggestions, beginning with a planned calendar of stake sales to lessen the risks of
timing the market, selling small slices of
companies every quarter or month in
order to diversify price risk upping
the chance the government target can
be met.
If they move to a strategy of having a
regular calendar of sales it can be met,
says Ms Patnaik. If not, all the old
issues will crop up again.

Tuesday 8 March 2016

FINANCIAL TIMES

21

22

FINANCIAL TIMES

Tuesday 8 March 2016

MARKET DATA
WORLD MARKETS AT A GLANCE

FT.COM/MARKETSDATA

Change during previous days trading (%)


S&P 500

Nasdaq Composite

0.11%

Dow Jones Ind

0.10%

FTSE 100

FTSE Eurofirst 300

-0.27%

0.30%

Nikkei

-0.25%

Hang Seng

-0.61%

FTSE All World $

-0.08%

0.16%

$ per

$ per

per $

per

-0.272%

-0.141%

-0.250%

-0.129%

Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS
EUROPE
Index

Feb 08 - Mar 07
S&P 500

All World

New York
2,002.15

1,915.45
Day 0.11%

Month 6.48%

All World

Toronto

13,439.98

12,774.50

Year -3.35%

Day 1.72%

New York

IPC

Nasdaq Composite

Index

Feb 08 - Mar 07
S&P/TSX COMP

Year -10.12%

Mexico City

4,721.96
4,509.56

44,995.00
43,229.67

Day 0.10%

Month 8.22%

Year -4.17%

Dow Jones Industrial

Day 0.33%

New York

All World

London

Month 4.09%

Year 3.96%

Bovespa

Month 5.64%

Year -10.61%

Frankfurt

Day -0.46%

Europe

Month 2.99%

Year NaN%

Ibex 35

1,283.04
Day -0.25%

Month 4.46%

Year -14.68%

CAC 40

Paris

Month 3.38%

Year -20.78%

FTSE MIB

Country

Month 5.26%

Year -4.48%
Latest

Latest

Previous

Day -0.32%
Country

Month 5.75%

Year -10.52%
19926.58
31132.44
18278.98
4286.42
17014.78
1131.17
1375.35
2139.74
3981.47
5280.58
630.37
494.29
1437.41
1692.49
44849.02
9108.32
437.99
668.53
6418.13
25816.29
635.47
33022.60

13269.27
5151.10
5090.00
2548.20
2230.50
3418.58
5642.71
49084.87
772.63
13212.50
453.79
18796.55
8010.71
9861.53
3007.99
352.85
2874.15
1784.64
1117.78
1295.43
1599.71

Index

Year -1.17%

FTSE Italia All-Share


19693.00
CSE M&P Gen
67.94
67.67
Italy
FTSE Italia Mid Cap
30819.13
PX
888.01
889.69
OMXC Copenahgen 20
988.05
980.92
FTSE MIB
18059.27
EGX 30
6214.94
6089.34
Japan
2nd Section
4289.99
OMX Tallinn
952.78
956.75
Nikkei 225
16911.32
Austria
OMX Helsinki General
8040.47
8051.54
S&P Topix 150
1118.72
Belgium
CAC 40
4442.29
4456.62
Topix
1361.90
SBF 120
3502.68
3515.82
Jordan
Amman SE
2133.71
Brazil
Germany
M-DAX
19682.67
19781.27
Kenya
NSE 20
3980.09
Canada
TecDAX
1639.85
1653.57
Kuwait
KSX Market Index
5264.71
XETRA Dax
9778.93
9824.17
Latvia
OMX Riga
629.41
Chile
Greece
Athens Gen
559.44
552.84
Lithuania
OMX Vilnius
497.14
China
FTSE/ASE 20
152.66
149.93
Luxembourg
LuxX
1450.08
Hong Kong
Hang Seng
20159.72
20176.70
Malaysia
FTSE Bursa KLCI
1697.93
HS China Enterprise
8626.31
8557.69
Mexico
IPC
44995.00
HSCC Red Chip
3700.78
3677.89
Morocco
MASI
9099.16
Hungary
Bux
24911.31
24735.23
Netherlands
AEX
436.00
India
BSE Sensex
24646.48
24606.99
AEX All Share
666.12
S&P CNX 500
6239.35
6218.40
New Zealand
NZX 50
6418.93
Colombia
Indonesia
Jakarta Comp
4831.58
4850.88
Nigeria
SE All Share
25820.10
Croatia
Ireland
ISEQ Overall
6308.57
6363.84
Norway
Oslo All Share
632.75
Israel
Tel Aviv 100
12.57
12.48
Pakistan
KSE 100
33022.60
(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.
13335.90
5204.70
5142.80
2638.00
2232.72
3398.22
5602.67
49357.42
786.69
13439.98
471.38
18878.64
8017.33
9954.72
3032.19
357.48
2897.34
1821.03
1122.61
1294.86
1607.23

Country

Month 21.69%

Previous

Merval
All Ordinaries
S&P/ASX 200
S&P/ASX 200 Res
ATX
BEL 20
BEL Mid
Bovespa
S&P/TSX 60
S&P/TSX Comp
S&P/TSX Met & Min
IGPA Gen
FTSE A200
FTSE B35
Shanghai A
Shanghai B
Shanghai Comp
Shenzhen A
Shenzhen B
COLCAP
CROBEX

Previous

Day 0.56%

Latest

Argentina
Australia

Index

Index

Cyprus
Czech Republic
Denmark
Egypt
Estonia
Finland
France

Country
Philippines
Poland
Portugal

Saudi-Arabia
Singapore
Slovakia
Slovenia
South Africa
South Korea
Spain
Sri Lanka
Sweden
Switzerland

close
price
102.09
106.75
89.95
97.89
564.55
91.67
83.75
51.16
719.42
13.59

Day's
change
-0.92
-1.64
-0.01
-3.69
-10.59
-0.28
1.46
-0.87
-10.80
0.05

BIGGEST MOVERS

Close
price

Day's
change

Day's
chng%

26.80
8.62
35.02
5.45
14.00

3.10
0.79
2.52
0.37
0.93

13.08
10.09
7.75
7.28
7.12

Ups
Evraz
Old Mutual
Anglo American
Indivior
Vedanta Resources

97.89
29.12
124.41
59.63
140.26

-3.69
-1.05
-4.39
-1.63
-3.64

-3.63
-3.48
-3.41
-2.66
-2.53

Downs
Mitie
Just Eat
Genus
Dunelm
Dfs Furniture

Downs
Netflix
Newfield Exploration
Pioneer Natural Resource Co.
Nike
Constellation Brands

Based on the constituents of the S&P500 and the Nasdaq 100 index

Previous

6892.69
46761.61
4928.97
2369.43
6617.62
1909.57
839.23
6387.44
2823.51
325.97
694.58
52673.79
31713.10
46601.06
1957.87
240.21
8786.80
6057.22
1394.72
484.52
8019.13

1,957.87

Hong Kong

Month 2.09%

Year -2.74%

FTSE Straits Times

Singapore
2,823.51

19,446.84

2,550.74

Day -0.08%

Month 4.52%

Year -16.57%

Shanghai Composite

Day -0.48%

Shanghai

Country

6899.07
46400.67
4951.48
2387.44
6556.57
1878.29
818.25
6396.36
2837.00
323.13
691.02
52200.71
31020.56
46224.71
1955.63
239.74
8811.60
6057.22
1403.77
487.00
7982.57

Taiwan
Thailand
Turkey
UAE
UK

USA

Venezuela
Vietnam

Month 4.84%

Latest

Weighted Pr
Bangkok SET
BIST 100
Abu Dhabi General Index
FT 30
FTSE 100
FTSE 4Good UK
FTSE All Share
FTSE techMARK 100
DJ Composite
DJ Industrial
DJ Transport
DJ Utilities
Nasdaq 100
Nasdaq Cmp
NYSE Comp
S&P 500
Wilshire 5000
IBC
VNI

Day 0.16%

Previous

8659.55
1395.75
77191.14
4566.39
2847.40
6182.40
5561.11
3394.68
3830.40
6037.27
17058.40
7661.72
635.48
4320.17
4721.96
9999.72
2002.15
20666.63
16318.24
576.20

Mumbai
24,646.48

24,338.43

Year -10.61%

Index

Year -17.38%

BSE Sensex

2,897.34

Day 0.81%

Month 7.64%

Country

8643.55
1379.53
76828.32
4556.43
2828.40
6199.43
5577.58
3405.27
3861.31
6021.06
17006.77
7651.85
633.05
4329.00
4717.02
9968.41
1999.99
20609.47
16267.34
573.65

Month 1.75%
Index
DJ Global Titans ($)
Euro Stoxx 50 (Eur)
Euronext 100 ID
FTSE 4Good Global ($)
FTSE All World
FTSE E300
FTSE Eurotop 100
FTSE Global 100 ($)
FTSE Gold Min ($)
FTSE Latibex Top (Eur)
FTSE Multinationals ($)
FTSE World ($)
FTSEurofirst 100 (Eur)
FTSEurofirst 80 (Eur)
MSCI ACWI Fr ($)
MSCI All World ($)
MSCI Europe (Eur)
MSCI Pacific ($)
S&P Euro (Eur)
S&P Europe 350 (Eur)
S&P Global 1200 ($)
Stoxx 50 (Eur)

Cross-Border

Year -16.72%
Latest

Previous

226.02
3019.44
865.19
5162.63
256.24
1341.32
2648.18
1254.73
1327.29
2381.80
1434.83
454.69
3786.11
4087.77
387.33
1608.04
1344.08
2201.76
1360.78
1378.39
1781.62
2854.61

226.25
3037.35
869.65
5160.61
255.82
1344.62
2653.41
1255.42
1311.47
2324.80
1424.12
454.05
3796.97
4108.46
384.68
1598.26
1332.23
2191.32
1367.83
1381.67
1781.08
2860.26

UK MARKET WINNERS AND LOSERS

LONDON
ACTIVE STOCKS

stock
traded m's
Apple
16.6
Facebook Class A
16.2
Hospira
11.8
Netflix
11.6
Amazon.com
10.2
Keurig Green Mountain
7.7
Exxon Mobil
7.1
Microsoft
7.1
Alphabet Class A Common Stock
6.8
Bank Of America
5.7

Ups
Murphy Oil
Southwestern Energy
National Oilwell Varco
Chesapeake Energy
Nrg Energy

Year -19.51%
Latest

Manila Comp
Wig
PSI 20
PSI General
BET Index
Micex Index
RTX
TADAWUL All Share Index
FTSE Straits Times
SAX
SBI TOP
FTSE/JSE All Share
FTSE/JSE Res 20
FTSE/JSE Top 40
Kospi
Kospi 200
IBEX 35
CSE All Share
OMX Stockholm 30
OMX Stockholm AS
SMI Index

Romania
Russia

STOCK MARKET: BIGGEST MOVERS


AMERICA
ACTIVE STOCKS

Month 4.69%
Index

Seoul

Day 0.11%

2,763.49

Day -1.20%

All World

1,917.79

Year -10.86%

18,059.27

17,250.26

4,200.67

Index

Feb 08 - Mar 07
Kospi

20,159.72

Milan

4,442.29

Month 0.55%

Hang Seng

40,592.09
Day 0.30%

-0.75%

0.61%

16,911.32

Day -0.61%

8,786.80

Day -0.28%

All World

Tokyo

17,044.99

Madrid

8,499.50

Index

Feb 08 - Mar 07
Nikkei 225

9,778.93

1,341.32

49,357.42

16,416.58

All World

9,286.23

FTSE Eurofirst 300

So Paulo

17,058.40

Index

Feb 08 - Mar 07
Xetra Dax

6,182.40

Day -0.27%

Gold $

ASIA
Index

Feb 08 - Mar 07
FTSE 100
5,848.06

Month 5.29%

Oil Brent $ Sep

Rio Tinto
Glencore
Bhp Billiton
Bp
Hsbc Holdings
Anglo American
Royal Dutch Shell
Royal Dutch Shell
Vodafone
Imperial Brands

EURO MARKETS
ACTIVE STOCKS

stock
traded m's
279.3
229.8
196.4
176.2
154.0
129.5
124.3
115.4
104.3
91.3

close
price
2237.00
170.75
897.80
365.55
450.35
628.10
1677.50
1674.00
218.30
3660.50

Day's
change
29.49
2.76
22.45
-7.19
-6.46
36.10
10.03
-3.62
-3.81
-14.27

Close
price

Day's
change

Day's
chng%

97.15
192.10
628.10
164.60
381.20

10.05
18.47
36.10
5.50
12.60

11.54
10.28
6.10
3.46
3.42

Ups
Repsol
Arcelormittal
Essilor Intl.
Schneider Electric
Ageas

273.50
383.30
1447.00
953.00
307.60

-21.73
-28.45
-58.63
-36.23
-11.37

-7.39
-6.71
-3.86
-3.63
-3.52

Downs
Grifols Sa
Edf
Edp
Kbc
Accor

BIGGEST MOVERS

Based on the constituents of the FTSE 350 index

Santander
Intesa Sanpaolo
Nestle N
Unicredit
Total
Novartis N
Telefonica
Basf Se Na O.n.
Eni
Roche Gs

TOKYO
ACTIVE STOCKS

stock
traded m's
373.3
330.0
293.9
275.1
274.2
271.6
261.1
238.3
224.0
222.1

close
price
4.10
2.52
65.20
3.64
42.81
65.34
9.84
63.28
13.54
228.62

Day's
change
-0.02
0.00
0.00
0.00
0.14
0.00
0.01
0.00
0.00
0.00

stock
close
traded m's
price
Toyota Motor
755.0 6100.00
Mitsubishi Ufj Fin,.
417.9
553.20
Sumitomo Mitsui Fin,.
399.0 3615.00
Softbank .
379.2 5754.00
Mizuho Fin,.
342.5
181.00
Toshiba
253.3
224.00
Sony
248.9 2614.50
Nissan Motor Co.,
238.2 1120.50
Fanuc
232.7 17830.00
Fast Retailing Co.,
222.6 34490.00

Day's
change
-129.00
-6.70
-14.00
-107.00
-3.70
14.70
22.00
24.00
240.00
80.00

Close
price

Day's
change

Day's
chng%

BIGGEST MOVERS

10.93
4.66
110.90
56.71
35.50

0.29
0.06
1.40
0.71
0.41

2.68
1.39
1.28
1.27
1.18

14.99
10.12
2.75
48.82
38.38

-14.40
-0.73
-0.13
-1.93
-1.43

-48.99
-6.73
-4.41
-3.80
-3.58

BIGGEST MOVERS

Based on the constituents of the FTSEurofirst 300 Eurozone index

Ups
Sharp
Toshiba
Ebara
Tokuyama
Kobe Steel,
Downs
Sky Perfect Jsat Holdings .
Taiyo Yuden Co.,
Ms&ad Insurance Holdings,.
Ajinomoto Co.,.
Tokyo Gas Co.,

Close
price

Day's
change

Day's
chng%

162.00
224.00
506.00
177.00
104.00

11.00
14.70
28.00
9.00
5.00

7.28
7.02
5.86
5.36
5.05

673.00
1229.00
3143.00
2752.50
529.10

-35.00
-61.00
-126.00
-105.00
-19.80

-4.94
-4.73
-3.85
-3.67
-3.61

Based on the constituents of the Nikkei 225 index

Mar 07
price(p)

%Chg
week

%Chg
ytd

109.8
17.1
79.9
-2.8
10.8
20.1
18.7
9.1
-14.6
3.4
-8.2
12.1

FTSE 250
Winners
Evraz
Vedanta Resources
Tullow Oil
Amec Foster Wheeler
Allied Minds
Ao World
Drax
Aggreko
Rotork
Acacia Mining
Ashmore
Serco

97.15
381.20
222.60
493.30
368.50
183.40
274.70
1042.00
187.50
288.80
277.70
106.70

41.9
38.1
30.4
24.4
23.1
19.1
18.0
17.8
17.6
16.4
15.1
13.7

-1.6
-17.9
-19.5
-15.6
-22.6
-10.7
33.8
-15.5
-1.6
-12.5
-14.8
3.8

Losers
Cobham
Paddy Power Betfair
Lancashire Holdings
St.modwen Properties
Bellway
Ladbrokes
Redrow
Entertainment One
Dignity
Bovis Homes
William Hill
Ncc

228.60
9620.00
533.50
299.80
2357.00
127.80
398.80
147.30
2345.00
898.00
390.00
274.30

-11.5
-10.4
-9.7
-8.3
-7.5
-7.1
-7.1
-6.8
-6.7
-6.2
-5.9
-5.8

FTSE 100
Winners
Anglo American
Bhp Billiton
Glencore
Aberdeen Asset Management
Old Mutual
Antofagasta
Admiral
Rio Tinto
Standard Chartered
Centrica
Standard Life
Intertek

Mar 07
price(p)

%Chg
week

%Chg
ytd

628.10
897.80
170.75
281.20
192.10
592.50
1964.00
2237.00
481.75
225.60
356.70
3112.00

30.8
22.3
22.1
16.5
16.4
14.1
13.7
13.4
11.9
8.4
7.2
6.5

Losers
Persimmon
Berkeley Holdings (the)
Inmarsat
Itv
Hikma Pharmaceuticals
Barratt Developments
Fresnillo
Whitbread
Bt
Taylor Wimpey
Tui Ag
Compass

1994.00
3028.00
928.00
233.90
1780.00
551.00
951.50
3722.00
465.70
175.90
1030.00
1220.00

-8.6
-6.8
-6.5
-6.1
-5.4
-5.3
-5.3
-5.1
-4.6
-4.6
-3.7
-3.6

Mar 07
price(p)

%Chg
week

%Chg
ytd

956.80
10049.78
14971.18
7697.87
6796.76
7043.89
2944.81
14562.88
8345.52
8895.80
6169.66
4954.37

40.8
19.8
12.1
10.0
5.9
5.9
5.3
4.6
4.3
3.4
2.5
2.4

31.5
36.6
14.7
7.2
-5.5
-10.1
17.5
1.3
-5.2
-6.0
8.7
-4.2

Losers
Fixed Line Telecommunication 5263.80
Household Goods
15957.58
Travel & Leisure
8504.32
Food Producers
8775.10
Pharmaceuticals & Biotech.
11850.88
Health Care Equip.& Services 6980.78
Media
7249.83
Mobile Telecommunications
4975.38
General Retailers
2854.35
Gas Water & Multiutilities
5918.43
Software & Computer Services 1621.23
Aerospace & Defense
4382.90

-4.1
-3.7
-3.1
-2.0
-1.9
-1.6
-1.0
-1.0
-0.8
-0.4
-0.2
0.3

-1.3
-3.3
-6.1
-1.1
-8.3
-3.8
-2.3
-2.6
-5.1
-0.3
-1.8
5.7

Mar 07
price(p)

%Chg
week

%Chg
ytd

32.6
38.5
33.0
10.7
-7.0
17.5
12.4
14.0
2.6
60.4
3.8
12.5

FTSE SmallCap
Winners
Lonmin
Ferrexpo
Tribal
Premier Oil
Hochschild Mining
Petra Diamonds
Fisher (james) & Sons
Dialight
Hunting
Blackrock World Mining Trust
Rps
Exova

188.00
43.50
53.00
51.75
90.50
120.75
1135.00
516.00
410.25
238.50
198.75
145.00

98.0
70.6
34.2
30.2
29.3
28.8
20.4
17.3
16.6
14.9
14.9
14.2

121.7
102.3
120.8
6.7
87.6
38.0
-2.8
14.7
34.3
27.6
-16.1
0.2

Industry Sectors
Winners
Industrial Metals
Mining
Oil Equipment & Services
Industrial Engineering
Automobiles & Parts
Life Insurance
Food & Drug Retailers
Forestry & Paper
Electricity
General Financial
Oil & Gas Producers
Construction & Materials

-19.3
5.6
-15.0
-27.7
-16.3
6.6
-14.3
-11.8
-8.2
-11.5
-2.4
-8.4

Losers
Wireless
Chesnara
Johnston Press
Uk Mail
Gem Diamonds
Mothercare
Wanton
Norcros
Carclo
Dw Catalyst Fund
Stv
Acal

167.75
281.50
43.00
280.00
108.00
188.00
154.75
169.38
132.00
1106.00
425.00
241.00

-14.2
-6.8
-6.0
-5.7
-4.8
-4.7
-4.6
-4.2
-3.6
-3.4
-3.3

-16.0
-18.6
12.0
-17.9
-14.5
-20.0
-16.7
3.9
-3.3
-17.5
-13.3

Based on last week's performance. Price at suspension.

CURRENCIES
Mar 07
Argentina
Australia
Bahrain
Bolivia
Brazil
Canada
Chile
China
Colombia
Costa Rica
Czech Republic
Denmark
Egypt
Hong Kong
Hungary
India

Currency
Argentine Peso
Australian Dollar
Bahrainin Dinar
Bolivian Boliviano
Brazilian Real
Canadian Dollar
Chilean Peso
Chinese Yuan
Colombian Peso
Costa Rican Colon
Czech Koruna
Danish Krone
Egyptian Pound
Hong Kong Dollar
Hungarian Forint
Indian Rupee

DOLLAR
Closing
Day's
Mid
Change
15.4163
0.2313
1.3394
-0.0104
0.3771
0.0001
6.8400
-0.0100
3.7701
0.0339
1.3297
-0.0071
679.8050
0.1050
6.5151
-0.0062
3122.3100
-36.5650
534.4300
0.1000
24.6370
0.0576
6.7922
0.0134
7.8215
0.1355
7.7656
0.0035
282.1915
2.0698
67.1650
-

EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
16.9324
0.2182
21.8971
0.3116
1.4711
-0.0146
1.9025
-0.0163
0.4142
-0.0008
0.5356
-0.0003
7.5127
-0.0271
9.7155
-0.0218
4.1409
0.0284
5.3551
0.0439
1.4605
-0.0109
1.8887
-0.0115
746.6610
-1.4870 965.5910
-0.6057
7.1558
-0.0222
9.2540
-0.0160
3429.3765 -47.6085 4434.9123
-55.4435
586.9890
-1.1498 759.1012
-0.4513
27.0599
0.0053
34.9942
0.0545
7.4601
-0.0013
9.6475
0.0114
8.5907
0.1307
11.1095
0.1839
8.5293
-0.0145
11.0301
-0.0036
309.9439
1.6129 400.8231
2.6288
73.7704
-0.1583
95.4008
-0.0746

Mar 07
Indonesia
Israel
Japan
..One Month
..Three Month
..One Year
Kenya
Kuwait
Malaysia
Mexico
New Zealand
Nigeria
Norway
Pakistan
Peru
Philippines

Currency
Indonesian Rupiah
Israeli Shekel
Japanese Yen

Kenyan Shilling
Kuwaiti Dinar
Malaysian Ringgit
Mexican Peson
New Zealand Dollar
Nigerian Naira
Norwegian Krone
Pakistani Rupee
Peruvian Nuevo Sol
Philippine Peso

DOLLAR
Closing
Day's
Mid
Change
13087.5000
-47.5000
3.9164
0.0067
113.5200
-0.2850
113.5199
-0.2853
113.5197
-0.2856
113.5183
-0.2885
101.4500
0.1400
0.3009
0.0005
4.0975
-0.0220
17.7551
-0.0019
1.4698
-0.0030
199.2500
-0.0350
8.5100
-0.0201
104.7050
-0.0300
3.4600
0.0145
46.9200
-0.0400

EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
14374.6110 -83.1298 18589.4338
-82.0526
4.3015
-0.0019
5.5628
0.0051
124.6842
-0.5813 161.2431
-0.5312
124.6842
-0.5814 161.2430
-0.5315
124.6842
-0.5813 161.2427
-0.5320
124.6841
-0.5816 161.2430
-0.5333
111.4272
-0.0851 144.0990
0.0863
0.3305
-0.0002
0.4274
0.0003
4.5005
-0.0339
5.8201
-0.0358
19.5012
-0.0440
25.2192
-0.0225
1.6144
-0.0068
2.0877
-0.0059
218.8454
-0.5082 283.0135
-0.2710
9.3469
-0.0422
12.0876
-0.0381
115.0023
-0.2799 148.7224
-0.1589
3.8003
0.0078
4.9146
0.0168
51.5344
-0.1546
66.6449
-0.1090

Mar 07
Currency
Poland
Polish Zloty
Romania
Romanian Leu
Russia
Russian Ruble
Saudi Arabia
Saudi Riyal
Singapore
Singapore Dollar
South African Rand
South Africa
South Korea
South Korean Won
Sweden
Swedish Krona
Switzerland
Swiss Franc
Taiwan
New Taiwan Dollar
Thailand
Thai Baht
Tunisia
Tunisian Dinar
Turkey
Turkish Lira
United Arab Emirates
UAE Dirham
United Kingdom
Pound Sterling
..One Month

DOLLAR
Closing
Mid
3.9390
4.0623
71.6813
3.7505
1.3789
15.3005
1201.5500
8.4889
0.9984
32.7175
35.4475
2.0386
2.9163
3.6729
0.7040
0.7040

Day's
Change
0.0075
0.0060
-0.4731
0.0001
0.0029
-0.0871
-1.9500
0.0088
0.0049
-0.1390
0.0375
0.0032
0.0107
-0.0002
0.0005
0.0005

EURO
Closing
Mid
4.3264
4.4618
78.7308
4.1193
1.5145
16.8052
1319.7175
9.3237
1.0966
35.9351
38.9336
2.2391
3.2031
4.0342
0.7733
0.7732

POUND
Day's
Closing
Day's
Change
Mid
Change
-0.0010
5.5949
0.0064
-0.0030
5.7700
0.0040
-0.6898 101.8156
-0.7522
-0.0088
5.3271
-0.0041
-0.0001
1.9585
0.0026
-0.1319
21.7327
-0.1407
-4.9789 1706.6745
-4.1063
-0.0103
12.0575
0.0031
0.0030
1.4181
0.0059
-0.2301
46.4717
-0.2339
-0.0423
50.3494
0.0139
-0.0013
2.8956
0.0022
0.0050
4.1422
0.0120
-0.0088
5.2170
-0.0043
-0.0011
-0.0011
-

Mar 07
..Three Month
..One Year
United States
..One Month
..Three Month
..One Year
Venezuela
Vietnam
European Union
..One Month
..Three Month
..One Year

Currency

United States Dollar

Venezuelan Bolivar Fuerte


Vietnamese Dong
Euro

DOLLAR
Closing
Mid
0.7041
0.7045
6.3053
22295.0000
0.9105
0.9103
0.9101
0.9089

Day's
Change
0.0005
0.0006
0.0198
7.5000
0.0019
0.0019
0.0020
0.0019

EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
0.7731
-0.0011
0.7724
-0.0011
1.0983
-0.0024
1.4204
-0.0011
1.0982
-0.3232
1.4204
-0.0011
1.0980
-0.3232
1.4204
-0.0011
1.0967
-0.3232
1.4209
-0.0011
6.9253
0.0069
8.9559
0.0211
24487.6570 -44.2738 31667.7170
-14.1464
1.2932
0.0018
1.2931
0.0018
1.2930
0.0018
1.2923
0.0018

Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata

UK SERIES

FTSE ACTUARIES SHARE INDICES

www.ft.com/equities

Produced in conjunction with the Institute and Faculty of Actuaries

Strlg Day's
Euro
Strlg
Strlg
Year
Div
P/E
Mar 07 chge%
Index
Mar 04
Mar 03
ago yield% Cover
ratio
FTSE 100 (100)
6182.40 -0.27 6237.32 6199.43 6130.46 6911.80 4.15 0.89 26.98
FTSE 250 (250)
16831.43 -0.59 16980.94 16931.19 16745.64 17272.21 2.67 1.90 19.69
FTSE 250 ex Inv Co (208)
18326.31 -0.63 18489.10 18441.86 18233.37 18733.41 2.69 2.00 18.59
FTSE 350 (350)
3445.56 -0.33 3476.17 3456.95 3418.59 3796.66 3.89 1.01 25.35
FTSE 350 ex Investment Trusts (308) 3423.81 -0.33 3454.23 3435.12 3396.81 3776.29 3.92 1.01 25.22
FTSE 350 Higher Yield (106)
3174.38 -0.07 3202.58 3176.51 3132.77 3631.67 5.55 0.64 28.17
FTSE 350 Lower Yield (244)
3387.21 -0.62 3417.30 3408.21 3380.34 3591.30 2.07 2.12 22.84
FTSE SmallCap (286)
4518.61
0.21 4558.74 4509.27 4472.32 4549.08 2.94 1.38 24.66
FTSE SmallCap ex Inv Co (152)
4135.20
0.30 4171.93 4122.67 4081.50 4007.24 2.87 1.81 19.29
FTSE All-Share (636)
3394.68 -0.31 3424.83 3405.27 3367.83 3728.95 3.86 1.02 25.32
FTSE All-Share ex Inv Co (460)
3359.63 -0.32 3389.48 3370.31 3332.80 3696.36 3.90 1.02 25.07
FTSE All-Share ex Multinationals (572) 1137.38 -0.50
951.05 1143.04 1134.50 1212.07 2.97 1.52 22.20
FTSE Fledgling (99)
7518.95
0.21 7585.74 7503.13 7458.44 7176.14 2.57 0.21 187.67
FTSE Fledgling ex Inv Co (49)
10455.40
0.63 10548.27 10389.87 10336.98 8994.67 2.68 -0.85 -43.98
FTSE All-Small (385)
3132.25
0.21 3160.08 3125.78 3100.51 3145.71 2.92 1.33 25.79
FTSE All-Small ex Inv Co Index (201) 3085.74
0.32 3113.15 3075.99 3045.87 2974.15 2.86 1.71 20.45
FTSE AIM All-Share Index (841)
703.88
0.20
710.13
702.49
696.61
718.11 1.54 0.62 103.75
FTSE Sector Indices
Oil & Gas (17)
6537.61
Oil & Gas Producers (10)
6203.45
Oil Equipment Services & Distribution (7)15615.66
Basic Materials (28)
3539.41
11213.94
Chemicals (7)
Forestry & Paper (1)
15890.77
Industrial Metals & Mining (2)
1010.82
Mining (18)
9670.37
Industrials (119)
4317.35
Construction & Materials (14)
5142.34
Aerospace & Defense (9)
4534.48
General Industrials (6)
3628.95
Electronic & Electrical Equipment (10) 5417.65
Industrial Engineering (14)
8064.61
Industrial Transportation (8)
3994.08
Support Services (58)
6403.26
18650.22
Consumer Goods (40)
Automobiles & Parts (1)
6831.59
Beverages (6)
15656.04
Food Producers (10)
8837.36
Household Goods & Home Construction (13)13356.89
Leisure Goods (2)
5877.01
Personal Goods (6)
23869.49
Tobacco (2)
48297.41
Health Care (19)
8757.05
Health Care Equipment & Services (7) 7062.97
Pharmaceuticals & Biotechnology (12)11763.79
Consumer Services (96)
4794.07
Food & Drug Retailers (7)
3069.71
General Retailers (32)
2798.75
Media (22)
7333.24
Travel & Leisure (35)
8299.39
Telecommunications (7)
3919.25
Fixed Line Telecommunications (5) 5346.99
Mobile Telecommunications (2)
4967.85
Utilities (7)
8286.03
Electricity (2)
8326.58
Gas Water & Multiutilities (5)
7821.81
Financials (284)
4127.64
Banks (9)
3260.35
Nonlife Insurance (10)
2838.87
Life Insurance/Assurance (11)
7142.43
Index- Real Estate Investment & Services (21) 2665.16
Real Estate Investment Trusts (25) 2656.03
General Financial (32)
7610.97
Equity Investment Instruments (176) 7404.47
Non Financials (352)
4045.01
Technology (19)
1419.41
Software & Computer Services (13) 1807.77
Technology Hardware & Equipment (6) 1571.49

-0.38
-0.38
-0.38
3.71
-0.12
-0.15
11.37
4.44
-0.65
-0.87
-0.91
-0.71
-0.14
-0.04
-0.66
-0.61
-0.72
-0.95
-0.49
-0.02
-1.16
-1.07
-0.69
-0.74
0.00
-0.32
0.04
-0.53
0.32
-1.00
0.12
-1.06
-1.11
-0.88
-1.27
-0.24
-0.14
-0.26
-0.51
-0.62
-1.07
0.02
-0.01
-1.36
-0.70
-0.16
-0.25
-0.76
-0.62
-0.89

6595.68
6258.55
15754.37
3570.85
11313.55
16031.93
1019.80
9756.27
4355.70
5188.01
4574.76
3661.19
5465.77
8136.24
4029.56
6460.14
18815.88
6892.27
15795.11
8915.86
13475.53
5929.21
24081.51
48726.42
8834.84
7125.70
11868.28
4836.66
3096.98
2823.61
7398.38
8373.11
3954.06
5394.49
5011.98
8359.63
8400.54
7891.29
4164.30
3289.31
2864.09
7205.87
2688.83
2679.62
7678.58
7470.24
4080.94
1432.02
1823.83
1585.45

6562.32
6226.89
15674.80
3412.80
11227.45
15914.28
907.61
9259.09
4345.60
5187.45
4576.09
3654.77
5425.45
8067.63
4020.50
6442.46
18784.85
6897.39
15733.18
8839.21
13514.15
5940.49
24035.08
48655.54
8757.14
7085.47
11759.60
4819.71
3059.88
2827.15
7324.12
8388.53
3963.27
5394.31
5031.92
8305.59
8337.89
7842.22
4148.78
3280.81
2869.60
7140.65
2665.34
2692.64
7664.87
7416.66
4055.02
1430.35
1819.05
1585.56

6475.09
6153.48
14870.46
3184.58
11030.24
15350.11
753.77
8562.56
4300.64
5206.53
4520.70
3596.08
5380.58
7852.13
3954.38
6380.29
18604.94
6916.19
15608.48
8725.73
13480.59
5829.27
23665.37
48019.43
8718.29
7025.59
11712.89
4797.31
3002.02
2818.94
7327.60
8342.60
3977.07
5443.95
5029.42
8266.09
8305.28
7803.28
4108.93
3230.49
2838.07
7090.28
2645.27
2685.26
7647.32
7360.17
4008.62
1427.86
1809.89
1587.22

7594.23
7199.97
18691.31
4792.45
12328.90
15832.01
1922.43
13685.65
4692.66
4936.99
5467.49
3615.34
5338.93
9776.44
4134.37
6855.89
17595.19
8493.07
15168.19
8263.57
11794.82
5166.25
23656.67
44935.88
9929.33
6785.85
13563.03
5021.79
3514.15
3029.83
7509.13
8426.59
3906.02
5269.02
4988.62
8222.95
9058.49
7574.64
4891.99
4310.59
2405.29
8695.51
2933.28
2999.68
8131.91
7797.28
4329.92
1384.90
1447.89
1771.88

6.72
6.79
4.88
5.75
2.57
2.27
1.14
6.40
2.58
2.28
2.52
3.14
2.28
3.72
3.80
2.38
2.85
2.92
2.47
1.86
2.20
4.07
2.77
3.78
4.03
1.60
4.31
2.44
1.74
2.60
2.79
2.27
4.17
2.90
5.06
4.90
6.08
4.61
4.05
5.21
2.70
4.24
2.41
3.34
3.06
2.74
3.80
1.46
2.03
0.98

-0.19
-0.24
1.26
0.18
2.12
4.06
-18.64
0.01
1.37
-0.74
1.56
1.53
1.88
1.10
0.87
1.78
1.89
1.33
1.70
1.41
2.78
1.32
3.05
1.36
0.51
1.56
0.46
1.61
-1.49
2.31
1.83
1.68
0.15
1.64
-0.45
2.09
1.22
2.37
1.62
0.86
2.45
1.59
5.57
5.93
2.08
1.08
0.82
1.88
1.78
2.04

-76.44
-62.38
16.26
98.03
18.35
10.85
-4.71
1127.24
28.23
-59.49
25.41
20.77
23.33
24.33
30.19
23.65
18.61
25.68
23.76
38.27
16.38
18.56
11.82
19.45
49.04
39.99
50.36
25.44
-38.47
16.64
19.58
26.21
159.17
21.01
-44.26
9.78
13.46
9.16
15.25
22.22
15.07
14.79
7.45
5.04
15.71
33.86
32.16
36.53
27.60
50.33

X/D
adj
50.54
34.54
29.53
24.50
24.52
37.49
6.80
18.56
12.40
23.78
23.79
2.34
27.23
28.69
12.79
9.23
1.14

Total
Return
4885.30
11739.46
13027.82
5481.70
2804.84
5205.19
3592.72
6221.19
5971.77
5462.82
2797.60
1943.00
13599.14
18379.85
5537.00
5646.08
758.79

110.54
108.98
0.00
32.05
61.01
0.00
0.00
97.63
1.83
0.00
1.48
0.00
2.85
10.28
0.00
3.49
73.67
0.00
96.90
6.04
1.97
0.00
150.56
207.72
146.29
1.60
218.91
15.45
0.00
2.42
1.47
66.99
0.00
0.00
0.00
33.42
145.17
5.49
32.95
51.02
15.57
0.21
7.02
8.31
38.11
38.10
27.06
5.01
12.84
0.93

5576.34
5474.68
11484.67
3510.02
9695.38
16506.90
882.13
5029.61
4291.94
5254.69
4689.32
3950.74
4800.45
9456.72
3360.10
6429.23
13209.40
6282.60
10730.39
7400.66
9087.63
4977.46
15501.33
29564.42
6490.10
5989.79
7758.21
4341.94
3510.23
3070.41
4330.33
7627.19
4106.80
4637.19
4646.28
8861.05
11283.07
8368.73
3634.13
2282.87
4797.94
6557.02
6869.57
3148.26
8302.18
3914.54
5704.52
1781.78
2387.84
1804.97

8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
16.00 High/day Low/day
Hourly movements
FTSE 100
6169.69 6166.42 6153.60 6146.60 6131.71 6144.43 6130.64 6144.79 6168.16 6214.88 6125.65
FTSE 250
16916.72 16887.91 16889.51 16853.60 16832.67 16857.56 16824.34 16797.20 16807.87 16982.65 16795.32
FTSE SmallCap
4509.86 4513.30 4509.87 4508.02 4510.23 4511.38 4508.94 4512.76 4515.94 4523.38 4506.22
FTSE All-Share
3391.78 3389.46 3383.81 3379.48 3372.31 3378.75 3371.52 3376.90 3387.57 3413.90 3369.23
Time of FTSE 100 Day's high:08:17:00 Day's Low13:57:00 FTSE 100 2010/11 High: 6242.32(01/01/2016) Low: 5536.97(11/02/2016)
Time of FTSE All-Share Day's high:08:17:00 Day's Low13:57:00 FTSE 100 2010/11 High: 3444.26(01/01/2016) Low: 3046.53(11/02/2016)
Further information is available on http://www.ftse.com FTSE International Limited. 2013. All Rights reserved. FTSE is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. Values are negative.

UK RIGHTS OFFERS
Amount
Latest
Issue
paid
renun.
price
up
date
High
Low
Stock
There are currently no rights offers by any companies listed on the LSE.

FT 30 INDEX

FTSE SECTORS: LEADERS & LAGGARDS

Mar 07 Mar 04 Mar 03 Mar 02 Mar 01 Yr Ago


High
Low Year to date percentage changes
FT 30
2847.40 2828.40 2832.00 2852.10 2818.40
0.00 2875.90 2547.10 Mining
31.36
FT 30 Div Yield
1.77
1.79
1.79
1.77
1.80
0.00
3.93
2.74 Basic Materials
24.46
P/E Ratio net
25.19
24.93
24.94
25.20
24.79
0.00
19.44
14.26 Industrial Metals &
24.07
FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35
Food & Drug Retailer
17.26
FT 30 hourly changes
Oil Equipment & Serv
14.85
8
9
10
11
12
13
14
15
16
High
Low Oil & Gas
9.56
2828.4 2837.6 2832.9 2836.9 2852.8 2847 2835.4 2834 2843.9 2854.6 2828.4 Oil & Gas Producers
9.34
FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30
Leisure Goods
8.44
Personal Goods
6.86
Aerospace & Defense
6.21
Tobacco
5.68
Industrial
Eng
5.52
Mar 04 Mar 03 Mnth Ago
Mar 07 Mar 04 Mnth Ago
Consumer Goods
2.64
Australia
92.36
92.03
89.52 Sweden
79.20
78.89
79.13 Industrial Transport
2.15
Canada
87.77
87.71
84.84 Switzerland
158.19 159.09 155.55 Beverages
1.98
Denmark
106.40 106.33 106.52 UK
86.28
86.32
88.98 NON FINANCIALS Index
1.80
Japan
135.23 135.85 130.37 USA
103.30 103.56 105.07 Forestry & Paper
1.50
New Zealand
113.27 112.64 112.97 Euro
87.35
86.95
87.68
Norway
85.70
85.35
84.47
Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100.
Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

FX: EFFECTIVE INDICES

Nonlife Insurance
Electronic & Elec Eq
Gas Water & Multi
Fixed Line Telecomms
Tech Hardware & Eq
Industrials
FTSE 100 Index
Technology
Food Producers
Telecommunications
Utilities
FTSE All{HY-}Share Index
Mobile Telecomms
Software & Comp Serv
Consumer Services
Household Goods & Ho
Chemicals
Media

+or-

FTSE SmallCap Index


FTSE 250 Index
Support Services
Construct & Material
Equity Invest Instr
General Retailers
Health Care Eq & Srv
Automobiles & Parts
Electricity
Travel & Leisure
Financial Services
Health Care
Pharmace & Biotech
Real Est Invest & Tr
Financials
Life Insurance
Banks
Real Est Invest & Se

-2.71
-2.86
-3.42
-3.48
-3.76
-3.88
-3.93
-4.83
-5.12
-5.19
-5.19
-7.71
-8.15
-8.84
-9.27
-10.07
-12.97
-13.58

FTSE GLOBAL EQUITY INDEX SERIES


Mar 07
Regions & countries
FTSE Global All Cap
FTSE Global All Cap
FTSE Global Large Cap
FTSE Global Mid Cap
FTSE Global Small Cap
FTSE All-World
FTSE World
FTSE Global All Cap ex UNITED KINGDOM In
FTSE Global All Cap ex USA
FTSE Global All Cap ex JAPAN
FTSE Developed
FTSE Developed All Cap
FTSE Developed Large Cap
FTSE Developed Europe Large Cap
FTSE Developed Europe Mid Cap
FTSE Dev Europe Small Cap
FTSE North America Large Cap
FTSE North America Mid Cap
FTSE North America Small Cap
FTSE North America
FTSE Developed ex North America
FTSE Japan Large Cap
FTSE Japan Mid Cap
FTSE Global wi JAPAN Small Cap
FTSE Japan
FTSE Asia Pacific Large Cap ex Japan
FTSE Asia Pacific Mid Cap ex Japan
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
FTSE Emerging Large Cap
FTSE Emerging Mid Cap
FTSE Emerging Small Cap
FTSE Emerging Europe
FTSE Latin America All Cap
FTSE Middle East and Africa All Cap
FTSE Global wi UNITED KINGDOM All Cap In
FTSE Global wi USA All Cap
FTSE Europe All Cap
FTSE Eurobloc All Cap
FTSE RAFI All World 3000
FTSE RAFI US 1000
FTSE EDHEC-Risk Efficient All-World
FTSE EDHEC-Risk Efficient Developed Europe

No of
stocks
7714
7081
1415
1634
4665
3049
2532
7391
5726
6453
2097
5705
914
219
301
716
316
392
1508
708
1389
177
303
781
480
530
430
1420
960
2009
501
451
1057
99
245
217
323
1988
1395
633
2999
994
3049
520

US $
indices
437.55
451.46
386.14
588.14
609.52
255.82
454.05
450.23
402.35
446.76
412.68
432.85
381.28
313.00
486.58
691.22
426.62
633.16
629.31
285.37
215.20
305.33
468.40
497.00
127.62
524.57
733.41
486.52
416.94
571.52
538.47
725.12
604.60
283.82
664.20
623.23
314.34
488.98
362.69
338.84
5298.10
8732.32
310.58
268.40

Day
%
0.7
0.7
0.7
0.7
0.9
0.7
0.7
0.7
1.1
0.8
0.6
0.7
0.6
1.4
1.3
1.6
0.4
0.3
0.6
0.4
1.1
0.1
0.6
1.1
0.2
1.0
1.1
1.0
1.0
1.5
1.5
1.6
1.0
1.8
3.9
1.0
1.6
0.4
1.4
1.4
1.0
0.5
0.6
1.3

Mth
%
4.3
4.5
4.0
5.0
5.7
4.1
4.1
4.4
3.9
4.5
3.8
4.0
3.6
2.5
2.7
3.1
4.1
6.5
7.0
4.5
2.8
2.0
1.5
1.9
1.9
5.9
6.4
4.8
6.0
7.6
7.8
7.7
5.9
7.6
14.1
5.6
2.6
4.7
2.7
2.5
5.0
5.1
4.4
2.0

YTD
Total
%
retn
-3.0 600.94
-2.7 609.28
-3.1 542.78
-2.3 770.01
-2.8 774.87
-3.0 370.74
-2.9 883.65
-2.9 609.61
-3.6 586.04
-2.7 619.18
-3.3 571.25
-3.2 592.59
-3.4 535.16
-5.2 496.26
-5.1 698.10
-5.5 965.40
-2.3 564.18
-1.1 784.04
-1.9 757.99
-2.1 386.66
-5.1 336.46
-6.8 382.06
-4.7 566.23
-5.6 620.39
-6.4 179.44
-3.0 787.17
-1.8 1061.22
-2.5 694.09
-2.9 664.99
0.0 816.28
0.0 773.81
2.1 1030.91
-1.8 832.16
6.3 417.07
11.0 985.61
0.7 930.81
-4.4 500.51
-2.4 629.21
-4.9 556.84
-5.6 524.87
-2.4 6703.41
-1.2 11094.85
-1.6 418.58
-3.9 392.51

YTD Gr Div Mar 07


No of
US $
Day
Mth
YTD
Total
YTD Gr Div
% Yield Sectors
stocks indices
%
%
%
retn
% Yield
-2.6
2.6 Oil & Gas
163 313.04
1.4
1.4
2.7 482.03
3.4
4.0
-2.3
2.5 Oil & Gas Producers
115 291.89
1.4
1.4
2.3 457.62
3.1
4.1
-2.7
2.8 Oil Equipment & Services
39 291.27
1.4
1.4
4.9 408.59
5.6
3.8
-2.1
2.2 Basic Materials
261 358.30
2.0
2.0
2.0 526.67
2.3
3.3
-2.6
2.1 Chemicals
122 564.84
1.2
1.2
-4.5 831.82
-4.3
2.8
-2.6
2.7 Forestry & Paper
16 192.65
1.6
1.6
-1.7 310.53
-1.4
3.6
-2.5
2.7 Industrial Metals & Mining
67 279.01
2.6
2.6
8.4 411.24
8.5
3.0
-2.5
2.5 Mining
56 400.35
4.4
4.4
23.7 590.76
24.6
5.3
-3.2
3.2 Industrials
533 296.28
0.9
0.9
-1.0 413.28
-0.6
2.4
-2.3
2.7 Construction & Materials
109 417.62
1.1
1.1
-0.3 608.18
-0.2
2.2
-2.9
2.6 Aerospace & Defense
27 492.60
0.8
0.8
-2.8 681.75
-2.3
2.4
-2.9
2.6 General Industrials
56 217.25
0.8
0.8
0.1 327.04
1.0
2.7
-3.0
2.7 Electronic & Electrical Equipment
69 302.87
1.1
1.1
-4.3 388.73
-4.2
2.0
-4.6
3.8 Industrial Engineering
104 540.62
1.3
1.3
0.9 740.84
1.1
2.7
-4.9
2.7 Industrial Transportation
96 495.63
0.9
0.9
0.1 689.63
0.5
2.5
-5.4
2.4 Support Services
72 271.34
0.7
0.7
-1.6 363.05
-1.5
2.0
-1.8
2.3 Consumer Goods
422 409.93
0.9
0.9
-1.6 584.40
-1.4
2.5
-0.8
1.8 Automobiles & Parts
103 346.39
1.0
1.0
-9.2 473.77
-9.1
2.9
-1.7
1.8 Beverages
48 567.68
1.2
1.2
-0.7 821.34
-0.4
2.5
-1.7
2.2 Food Producers
106 558.11
0.7
0.7
-0.1 818.35
0.1
2.2
-4.7
3.2 Household Goods & Home Construction
47 403.13
0.6
0.6
0.4 572.55
0.8
2.3
-6.8
2.2 Leisure Goods
28 126.44
0.4
0.4
-4.1 162.88
-4.0
1.5
-4.7
1.7 Personal Goods
79 603.85
0.9
0.9
1.0 820.82
1.3
2.0
-5.5
2.0 Tobacco
11 1289.87
1.0
1.0
6.0 2524.10
6.1
3.6
172 424.23
0.0
0.0
-7.4 594.53
-6.9
2.0
-6.4
2.1 Health Care
-2.7
3.4 Health Care Equipment & Services
60 638.35
0.1
0.1
-1.7 732.37
-1.7
1.0
-1.5
3.0 Pharmaceuticals & Biotechnology
112 315.71
-0.1
-0.1
-9.3 460.58
-8.5
2.4
-2.3
2.9 Consumer Services
386 380.41
0.2
0.2
-2.4 495.67
-2.1
1.8
-2.6
3.4 Food & Drug Retailers
53 295.98
0.2
0.2
-1.3 401.52
-0.9
1.9
0.2
3.2 General Retailers
121 511.24
0.4
0.4
-4.1 649.67
-3.8
1.6
0.1
3.3 Media
87 285.73
0.2
0.2
-1.2 372.93
-1.0
2.0
2.3
2.9 Travel & Leisure
125 374.91
0.0
0.0
-1.7 493.72
-1.3
1.8
-1.7
3.1 Telecommunication
92 162.58
0.0
0.0
3.2 287.42
3.7
4.1
6.3
4.2 Fixed Line Telecommuniations
44 141.06
0.0
0.0
6.4 273.57
7.3
4.4
11.5
3.3 Mobile Telecommunications
48 162.81
-0.1
-0.1
-1.2 259.87
-1.1
3.6
163 244.73
1.1
1.1
3.1 450.77
3.7
3.9
1.0
2.9 Utilities
112 269.26
1.2
1.2
4.0 491.01
4.6
3.7
-3.7
3.9 Electricity
51 255.94
0.9
0.9
1.6 482.86
2.1
4.3
-2.1
2.1 Gas Water & Multiutilities
674 186.27
0.8
0.8
-7.2 290.51
-6.8
3.2
-4.4
3.5 Financials
244 161.85
1.2
1.2
-9.3 269.23
-8.9
3.8
-5.3
3.2 Banks
70 207.71
0.4
0.4
-3.2 289.63
-3.0
2.5
-1.9
3.2 Nonlife Insurance
51 175.97
0.6
0.6 -11.2 267.97 -10.9
3.3
-0.8
2.6 Life Insurance
141 206.20
0.8
0.8
-7.3 275.55
-7.0
2.2
-1.3
2.4 Financial Services
183 168.71
0.4
0.4
-3.2 201.91
-2.9
1.8
-3.7
2.8 Technology
Software & Computer Services
85 298.20
0.0
0.0
-3.9 343.06
-3.6
1.1
Technology Hardware & Equipment
98 123.32
0.8
0.8
-2.4 151.96
-2.0
2.6
The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index and RAFI are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
WO 2008/118372, EPN 1733352, and HK1099110). EDHEC is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. FTSE International Limited. 2013. All Rights reserved. FTSE is a trade mark of the London Stock Exchange
Group companies and is used by FTSE International Limited under licence.

UK COMPANY RESULTS
closing
Price p

1.23
0.95
-0.07
-0.21
-0.36
-0.45
-0.69
-0.78
-0.88
-0.88
-1.12
-1.13
-1.33
-1.47
-1.92
-1.96
-2.49
-2.52

FTSE 100 SUMMARY

Company
Abcam
Clarkson
ECR Minerals
HgCapital Trust
Keras Resources
One Media iP Group
Pennant International Group
Telit Communications
Thor Mining
Tower Resources

FTSE 100

Closing Day's
Price Change FTSE 100

3I Group PLC
Aberdeen Asset Management PLC
Admiral Group PLC
Anglo American PLC
Antofagasta PLC
Arm Holdings PLC
Ashtead Group PLC
Associated British Foods PLC
Astrazeneca PLC
Aviva PLC
Babcock International Group PLC
Bae Systems PLC
Barclays PLC
Barratt Developments PLC
Berkeley Group Holdings (The) PLC
Bhp Billiton PLC
BP PLC
British American Tobacco PLC
British Land Company PLC
Bt Group PLC
Bunzl PLC
Burberry Group PLC
Capita PLC
Carnival PLC
Centrica PLC
Coca-Cola Hbc AG
Compass Group PLC
Crh PLC
Dcc PLC
Diageo PLC
Direct Line Insurance Group PLC
Dixons Carphone PLC
Easyjet PLC
Experian PLC
Fresnillo PLC
Gkn PLC
Glaxosmithkline PLC
Glencore PLC
Hammerson PLC
Hargreaves Lansdown PLC
Hikma Pharmaceuticals PLC
HSBC Holdings PLC
Imperial Brands PLC
Inmarsat PLC
Intercontinental Hotels Group PLC
International Consolidated Airlines Group S.A.
Intertek Group PLC
Intu Properties PLC
Itv PLC
Johnson Matthey PLC
Kingfisher PLC

437.20
281.20
1964
628.10
592.50
1006
896.00
3343
4016.5
461.90
950.00
500.50
173.70
551.00
3028
897.80
365.55
4008.5
674.00
465.70
1952
1371
1019
3420
225.60
1401
1220
1901
5650
1859
395.40
431.10
1533
1202
951.50
290.70
1375
170.75
548.50
1260
1780
450.35
3660.5
928.00
2684
540.00
3112
298.70
233.90
2611
344.80

-7.90
-4.80
20.00
36.10
42.00
-11.00
-6.50
2.00
-4.50
-4.20
-9.00
-6.50
-0.60
-3.50
18.00
30.00
-2.35
-36.00
-12.00
-4.30
-10.00
-9.00
-4.00
-40.00
1.40
15.00
-15.00
-16.00
-65.00
-15.00
-3.30
-4.90
-19.00
-1.00
-7.50
-2.80
5.00
10.75
-8.00
-12.00
-12.00
-3.20
-15.00
-4.00
-51.00
-5.00
20.00
-3.10
3.20
-2.00
2.40

Closing Day's
Price Change

Land Securities Group PLC


Legal & General Group PLC
Lloyds Banking Group PLC
London Stock Exchange Group PLC
Marks And Spencer Group PLC
Merlin Entertainments PLC
Mondi PLC
National Grid PLC
Next PLC
Old Mutual PLC
Pearson PLC
Persimmon PLC
Provident Financial PLC
Prudential PLC
Randgold Resources LD
Reckitt Benckiser Group PLC
RELX PLC
Rexam PLC
Rio Tinto PLC
Rolls-Royce Holdings PLC
Royal Bank Of Scotland Group PLC
Royal Dutch Shell PLC
Royal Dutch Shell PLC
Royal Mail PLC
Rsa Insurance Group PLC
Sabmiller PLC
Sage Group PLC
Sainsbury (J) PLC
Schroders PLC
Severn Trent PLC
Shire PLC
Sky PLC
Smith & Nephew PLC
Smiths Group PLC
Sports Direct International PLC
Sse PLC
St. James's Place PLC
Standard Chartered PLC
Standard Life PLC
Taylor Wimpey PLC
Tesco PLC
Travis Perkins PLC
Tui AG
Unilever PLC
United Utilities Group PLC
Vodafone Group PLC
Whitbread PLC
Wolseley PLC
Worldpay Group PLC
Wpp PLC

1041
237.40
72.75
2836
423.50
448.00
1352
940.50
6555
192.10
867.00
1994
3198
1326.5
6415
6436
1224
616.00
2237
721.50
230.30
1677.5
1674
454.10
439.60
4215.5
597.00
270.50
2651
2088
3766
1014
1138
1047
403.10
1430
888.00
481.75
356.70
175.90
191.80
1795
1030
3087
908.50
218.30
3722
3842
291.90
1548

-19.00
-2.10
-0.49
-17.00
-0.50
-8.10
-2.00
-4.00
-65.00
12.40
-4.50
2.00
-62.00
-20.00
-200.00
-103.00
-3.00
-0.50
107.00
-1.00
-0.30
-7.50
-3.50
-3.00
-9.10
-9.50
-4.00
3.30
27.00
-16.00
-16.00
-9.00
-11.00
-13.00
-4.10
-3.00
29.00
-4.35
4.80
-0.90
1.05
12.00
-13.00
-22.00
-4.00
-2.95
-81.00
-46.00
-8.20
17.00

UK STOCK MARKET TRADING DATA


Mar 07
Mar 04
Mar 03
Mar 02
Mar 01
Yr Ago
SEAQ Bargains
6543.00
6019.00
6019.00
4773.00
4915.00
6596.00
Order Book Turnover (m)
27.15
37.12
37.12
48.40
Order Book Bargains
1013823.00 1024763.00 1024763.00 1050845.00
- 1018233.00
Order Book Shares Traded (m)
1591.00
1757.00
1757.00
1557.00
1652.00
Total Equity Turnover (m)
3365.86
4303.80
4303.80
3086.19
3450.09
Total Mkt Bargains
1136222.00 1162106.00 1162106.00 1166104.00
- 1135554.00
Total Shares Traded (m)
7016.00
6796.00
6796.00
6810.00
7715.00
Excluding intra-market and overseas turnover. *UK only total at 6pm. UK plus intra-market turnover. (u) Unavaliable.
(c) Market closed.

All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
liable for any loss arising from the reliance on or use of the listed information.
For all queries e-mail ft.reader.enquiries@morningstar.com

Data provided by Morningstar | www.morningstar.co.uk

UK RECENT EQUITY ISSUES


Int
Pre
Pre
Pre
Pre
Pre
Pre
Pre
Int
Pre

Turnover
66.746
78.757
237.9
301.8
2.519
9.893
333.493
-

2.9
17.798
294.004
-

Pre-tax
22.06
20.895
25.2
31.8
1.746L
1.503L
54.296
65.397
1.914L
5.716L
0.642
0.449
2.167
2.378L
13.908
15.873
0.579L
1.062L
56.603L
9.792L

Figures in m. Earnings shown basic. Figures in light text are for corresponding period year earlier.
For more information on dividend payments visit www.ft.com/marketsdata

EPS(p)
8.43
68.2
0.13L
47.98
0.528L
0.5
8.71L
0.123
0.03L
0.002L

8.84
91.9
0.05L
58.76
0.192L
0.91
11.32
0.106
0.02L
0.016L

Div(p)
Pay day
2.29 Apr 15
2.354
39
Jun 3
40
32 May 16
40
0.071 Nov 20
0.071
2
-

8.274
62
40
0.142
-

Total
7.91
60
32
0.142
2.9
-

Issue
date
02/12
02/02

Issue
price(p)
20.00
180.00

Sector
AIM

Stock
code
CGP
CYBG

Stock
Cogenpower PLC
CYBG PLC

Placing price. *Intoduction. When issued. Annual report/prospectus available at www.ft.com/ir


For a full explanation of all the other symbols please refer to London Share Service notes.

Close
price(p)
20.50
208.50

+/-0.10
5.11

High
23.00
210.00

Low
20.00
179.00

Mkt
Cap (m)
1028.4
183337.2

Tuesday 8 March 2016

23

FINANCIAL TIMES

MARKET DATA
FT500: THE WORLD'S LARGEST COMPANIES
Stock
Australia (A$)
ANZ
BHPBilltn
CmwBkAu
CSL
NatAusBk
Telstra
Wesfarmers
Westpc
Woolworths
Belgium ()
AnBshInBv
KBC Grp
Brazil (R$)
Ambev
Bradesco
Cielo
ItauHldFin
Petrobras
Vale
Canada (C$)
BCE
BkMontrl
BkNvaS
Brookfield
CanadPcR
CanImp
CanNatRs
CanNatRy
Enbridge
GtWesLif
ImpOil
Manulife
Potash
RylBkC
Suncor En
ThmReut
TntoDom
TrnCan
ValeantPh
China (HK$)
AgricBkCh
Bk China
BkofComm
BOE Tech
Ch Coms Cons
Ch Evrbrght
Ch Rail Cons
Ch Rail Gp
ChConstBk
China Vanke
ChinaCitic
ChinaLife
ChinaMBank
ChinaMob
ChinaPcIns
ChMinsheng
ChMrchSecs RMB
Chna Utd Coms RMB
ChShenEgy
ChShpbldng RMB
ChStConEng RMB
ChUncHK
CNNC Intl RMB
CSR
Daqin RMB
Gree Elec Apl
GuosenSec RMB
HaitongSecs
Hngzh HikVDT RMB
Hunng Pwr
IM Baotou Stl RMB
In&CmBkCh
IndstrlBk RMB
Kweichow RMB
Midea
New Ch Life Ins
PetroChina
PingAnIns
PngAnBnk RMB
Pwr Cons Corp RMB
SaicMtr RMB
ShenwanHong
ShgPdgBk RMB
Sinopec Corp
Sinopec Oil RMB
Denmark (kr)
DanskeBk
MollerMrsk
NovoB

52 Week
High
Low

Price Day Chg

Yld

P/E MCap m

25.48
18.55
76.89
103.15
27.23
5.13
40.52
32.12
23.02

0.46
0.88
1.15
0.58
0.60
0.15
0.41
0.26

37.25
33.35
96.69
108.68
39.71
6.53
45.00
40.07
30.02

21.86 8.95 11.23 55501.62


14.06 11.53 23.48 44479.93
70.07 7.31 15.59 98023.09
85.40 1.50 26.48 35645.42
23.82 9.10 12.64 53627.93
4.98 7.98 15.77 46824.75
36.65 6.62 19.73 34067.86
27.69 7.21 15.05 79994.25
20.50 8.10-288.37 21843.18

105.60
48.82

-0.35
-1.93

124.20
66.00

87.73
44.15

19.19
27.80
35.19
25.40
10.00
17.88

0.08
-0.36
-0.35
-0.70
0.02
1.33

20.46
32.40
46.27
32.66
16.26
27.89

57.95
77.10
60.44
42.47
172.59
94.06
34.59
80.04
49.90
35.07
45.06
18.64
25.68
72.12
34.90
49.34
54.14
49.78
89.51

0.44
0.89
0.94
-0.14
5.61
1.30
0.19
1.22
0.99
0.31
0.93
0.21
1.13
0.74
1.15
0.45
0.47
0.48
7.87

59.30
80.76
67.44
48.64
245.05
102.90
42.46
88.62
66.14
37.70
55.37
24.20
44.16
81.53
40.93
55.92
56.48
58.12
347.84

2.77
3.15
4.84
1.90
7.88
3.49
8.29
5.38
4.87
18.26
4.74
18.04
16.60
84.65
26.45
7.13
16.21
4.36
12.86
6.60
5.60
9.14
7.29
7.50
6.97
0.20
14.87
12.30
29.89
6.66
3.14
4.13
15.12
233.64
1.90
25.00
5.41
35.60
10.34
6.47
19.53
0.13
18.45
4.92
5.71

0.03
0.05
0.04
0.03
0.30
0.09
0.32
0.11
0.08
-0.26
0.11
-0.06
0.18
-1.05
-0.10
0.13
0.22
-0.01
0.44
0.12
-0.02
0.04
0.02
-0.01
0.01
0.01
0.20
-0.08
-0.10
-0.03
0.15
0.04
-0.27
-5.14
-0.05
-0.05
0.03
-0.20
-0.06
0.02
-0.20
0.00
0.10
0.05

190.70
9600
386.80

-0.30
60.00
7.20

Stock

26.74
10.90
20.52
6.38
-4.22
-8.43

80002.35
18613.93
17609.96
20528.31
19740.44
15257.58

51.56
64.01
51.17
37.70
140.02
82.19
21.27
66.62
40.03
30.42
37.25
15.32
20.65
64.52
27.32
47.25
47.75
40.58
79.92

4.12 20.46
4.03 12.18
4.21 11.55
1.35 12.17
0.75 20.67
4.45 11.01
2.46 94.55
1.38 20.26
3.44-1351.98
3.43 13.73
0.99 37.03
3.29 19.25
7.44 13.21
4.09 11.47
3.01 -27.42
3.37 15.72
3.57 13.32
3.85 -30.85
41.03

37761.85
37298.24
54661.13
31508.7
19861.63
27954.25
28476.42
47336.44
34681.18
26198.99
28722.88
27642.84
16156.87
80631.6
40951.33
28256.93
75378.21
26293.04
22967.59

4.55
5.68
8.61
4.78
17.00
5.65
17.70
12.30
7.98
24.10
7.40
41.00
26.85
118.00
47.10
11.88
40.00
10.74
22.50
20.19
12.52
16.00
14.38
20.70
15.15
0.45
34.94
27.90
56.48
11.90
7.50
7.10
21.42
290.00
2.68
56.55
11.04
62.90
17.50
20.00
29.18
0.41
20.12
7.79
14.23

2.50
2.83
4.24
1.17
5.77
3.07
6.72
4.21
4.31
15.52
4.00
16.12
12.72
79.00
23.70
6.13
13.45
3.86
10.12
5.66
4.88
7.87
4.07
6.61
6.41
0.13
13.28
10.00
23.72
5.63
2.66
3.72
11.90
166.20
1.65
22.00
4.16
30.50
9.30
5.60
14.00
0.12
11.91
3.86
5.49

7.64 4.39 10964.54


7.02 4.91 33920.54
6.49 4.70 21821.84
1.90 28.43
48.68
2.50 8.01 4492.76
6.20 4.84 3086.95
2.10 7.62 2216.53
1.69 9.51 2914.88
7.19 4.62 150772.91
3.17 10.96
3092
4.70 9083.92
2.54 11.50 17286.44
4.70 6.24 9813.74
3.11 14.08 223197.3
2.14 13.67 9452.87
3.02 4.86 6366.13
4.59 8.92 11950.45
1.48 30.83 14184.97
6.59 9.41 5628.15
0.55-419.53 18191.85
2.95 7.47 25700.01
2.54 20.53 28185.47
21.34
4353.8
17.63 4221.58
6.62 7.63 15904.79
-2.36
350.32
1.29 9.38 5009.98
2.36 8.02 5400.48
1.29 22.13 14477.76
6.60 6.65 4031.19
- -41.79 7587.03
7.20 4.68 46160.54
3.62 6.00 44215.9
1.80 19.00 45048.91
4.76 13.21
52.61
0.97 7.34 3329.15
3.38 20.05 14698.97
2.21 9.97 34142.3
1.62 6.84 18733.98
1.48 13.24 3277.16
6.40 7.77 33050.79
-2.04
40.58
3.94 7.25 52824.39
4.69 24.36 16164.55
- -171.40 1562.97

218.00
16450
415.00

168.30
7355
305.10

2.75 15.09 28318.55


2.97 39.64 15042.61
1.23 31.75 117459.08

FT 500: TOP 20
Week
change change %
4.74
40.1
2.63
35.8
37.50
28.1
4.62
23.5
7.82
23.1
3.61
22.6
6.12
21.6
4.89
21.0
32.50
20.8
35.70
19.3
2.96
19.0
333.00
17.5
6.50
17.1
1.80
16.3
149.00
15.3
9.71
15.0
2.01
15.0
3.39
14.9
1.40
14.7
4.53
14.6

Month
change %
75.07
56.81
59.33
-2.49
26.17
13.86
14.66
33.48
13.46
8.06
14.51
18.78
8.54
13.01
4.38
10.72
3.01
12.13
18.66
13.10

INTEREST RATES: OFFICIAL


Rate
Fed Funds
Prime
Discount
Repo
Repo
O'night Call
Libor Target

Current
0.25-0.50
3.50
0.75
0.05
0.50
0.00-0.00
0.00-0.25

Mar 07 (Libor: Mar 04)


US$ Libor
Euro Libor
Libor
Swiss Fr Libor
Yen Libor
Euro Euribor
Sterling CDs
US$ CDs
Euro CDs

P/E MCap m

Stock

52 Week
High
Low

Price Day Chg

Yld

P/E MCap m

Japan ()
AstellasPh
1582 -9.50
2033
1476 1.84 20.38 30963.04
Bridgestne
4196 -10.00
5182
3561 2.54 13.69 30054.42
Canon
3330 -38.00
4539 2977.5 4.27 18.67 39124.67
CntJpRwy
19345 -620.00 24800 18255 0.56 13.78 35104.56
Denso
4530 -10.00
6548
3879 2.47 15.14 35278.64
EastJpRwy
9860 -200.00 12815
9191 1.15 18.27 34091.35
Fanuc
17830 240.00 28575 15300 3.95 20.68 32346.28
FastRetail
34490 80.00 61970 30720 0.88 45.35 32227.63
Fuji Hvy Ind
4009 -27.00
5223
3411 2.47 8.40 27647.19
Hitachi
517.70 -1.60 858.00 431.00 2.11 10.12 22042.67
HondaMtr
3170 -18.00
4499
2726 2.52 12.08 50583.4
JapanTob
4624 -76.00
4850
3551 1.96 22.61 81465.82
KDDI
2861 -35.00
8550
2519 1.91 16.56 67817.47
Keyence
59960 -810.00 70100 50500 0.30 33.16 32114.9
MitsbCp
2060.5
7.00
2837
1565 2.43 11.20 28861.47
MitsubEst
2163.5 -32.00
2975
1970 0.63 59.83 26498.63
MitsubishiEle
1199 -25.50
1718 947.00 2.05 11.70 22678.79
MitsuiFud
2755.5 -61.50
3879 2260.5 0.92 24.01 24065.11
MitUFJFin
553.20 -6.70 936.80 431.90 2.96 5.87 69046.95
Mizuho Fin
181.00 -3.70 280.40 149.30 3.89 6.82 39685.77
Murata Mfg
14650 -410.00 22220 11610 1.24 16.04 29070.75
NipponTT
4714 -41.00
5419 3592.5 1.83 16.30 87054.29
Nissan Mt
1120.5 24.00
1350 923.30 3.04 9.04 44621.76
Nomura
535.10 909.20 442.80 3.91 9.34 18018.45
Nppn Stl
2193.5 -15.50
3505 1773.5 2.69 10.34 18362.67
NTTDCMo
2541.5 -43.00
2888
1961 2.50 20.87 91472.79
Panasonic
1020
4.50 1853.5 799.00 1.35 153.17 22041.18
Seven & I
4486 -161.00
5998
4370 1.45 26.68 35029.77
ShnEtsuCh
6089 34.00
8249
5160 1.57 19.67 23177.39
Softbank
5754 -107.00
7827
4133 0.63 13.62 60857.99
Sony
2614.5 22.00
3970
2199 0.78 26.74 29074.73
SumitomoF
3615 -14.00
5770 2819.5 3.90 9.74 45030.05
Takeda Ph
5484 -36.00
6624
5010 2.98 -42.29 38174.9
TokioMarine
4012 -136.00
5504
3310 2.44 15.54 26772.27
Toyota
6100 -129.00
8783
5703 3.35 9.09 179367.36
Mexico (Mex$)
AmerMvl
13.43
0.32 17.17 10.87 1.83 24.97 31782.84
FEMSA UBD 165.90 -3.38 176.84 133.52 0.65 32.92 33434.3
WalMrtMex
43.19 -0.41 47.44 35.50 1.23 33.66 42477.36
Netherlands ()
Altice
13.63 -0.27 47.73
9.98 - 256.00 12293.89
ASML Hld
86.68
0.11 104.85 70.25 0.77 28.36 41255.25
Heineken
75.73 -0.15 85.90 64.54 1.49 24.06 47910.59
ING
11.23 -0.23 16.00
9.19 3.06 8.53 47711.3
Unilever
39.72 -0.15 42.84 32.86 2.86 24.23 74797.81
Norway (Kr)
DNB
102.30 -0.50 143.00 90.10 3.48 7.83 19580.04
Statoil
133.60 -0.20 161.70 97.25 5.04 -12.21 50059.14
Telenor
135.20 -2.30 186.10 116.80 2.63 35.34 23853.95
Qatar (QR)
QatarNtBk
139.60
0.20 169.00 122.50 4.31 10.80 26823.62
Russia (RUB)
Gzprm neft
150.15
3.99 158.70 122.75 4.91 12.18 49588.67
Lukoil
2840 65.00 2977.2 2040.1 6.27 24.53 33699.18
MmcNrlskNckl
9494 194.00 11284
7840 14.50 11.49 20959.21
Novatek
639.60 13.90 650.00 410.80 9.39 56.89 27092.47
Rosneft
301.00 -1.25 304.40 214.80 2.79 7.92 44503.34
Sberbank
109.47
0.48 110.70 60.57 0.42 11.51 32967.16
Surgutneftegas
40.65
0.57 40.65 30.31 1.50 20257.35
Saudi Arabia (SR)
AlRajhiBnk
53.09 -0.05 69.00 44.70 2.27 12.57 23002.9
Natnlcombnk
42.69 -0.33 72.75 36.60 1.76 10.32 22765.26
SaudiBasic
76.41 -0.54 110.50 59.50 6.30 10.35 61120.68
SaudiTelec
67.82 -0.34 73.25 52.75 5.68 15.21 36166.32
Singapore (S$)
DBS
15.38
0.02 21.50 13.01 3.55 12.81 27884.22
JardnMt US$
54.40 -2.09 65.98 45.00 2.41 14.01 38208.97
JardnStr US$
29.12 -0.91 35.78 25.24 0.84 11.43 32411.98
OCBC
8.72 -0.07 10.92
7.41 3.75 10.65 26011.9
SingTel
3.75 -0.06
4.57
3.38 4.37 16.53 43360.26
UOB
18.38 -0.12 25.05 16.80 4.21 10.07 21425.08
South Africa (R)
Firstrand
49.26
0.98 58.47 34.08 4.39 10.94 18059.75
MTN Grp
147.82
5.72 250.00 109.56 9.59 7.79 17829.53
Naspers N
1964 -38.00
2270 1521.98 0.25 59.48 56206.61
South Korea (KRW)
HyundMobis 254000 2500 272000 185500 1.12 13.49 20577.87
KoreaElePwr
56800-1600.00 61200 40800 0.84 3.14 30347.1
SK Hynix
31900 51700 25800 1.55 5.79 18758.03
SmsungEl
1223000 8000 1510000 1033000 1.59 9.43 147659.11
Spain ()
BBVA
6.17 -0.07
9.77
5.24 2.47 16.46 43145.65
BcoSantdr
4.10 -0.02
7.17
3.31 11.52 8.28 65049.19
CaixaBnk
2.64 -0.05
4.53
2.37 4.33 20.05 16887.42
Iberdrola
5.80 -0.08
6.71
5.66 0.49 15.83 40773.81
Inditex
29.70 -0.01 35.38 26.00 1.25 35.27 101650.79
Repsol
10.93
0.29 18.75
7.95 8.29 -13.38 17300.58
Telefonica
9.84
0.01 14.31
8.48 7.21 516.32 53781.51

Last
1.00
3.50
0.75
0.05
0.50
0.03
0.00-0.75

Mnth Ago
0.25-0.50
3.50
1.00
0.05
0.50
0.00-0.10
-1.25--0.25

Year Ago
0.00-0.25
3.50
0.75
0.05
0.50
0.00-0.10
0-0.25

Day
0.000
0.000
0.000

Change
Week
0.251
-0.005
0.001

Month
0.000
0.000
0.000
0.000
0.000
-0.005
0.000
0.000
-0.030

One
month
0.43800
-0.28500
0.50788
-0.82820
-0.04657
-0.28100
0.50000
0.42000
-0.32500

Three
month
0.63350
-0.23014
0.58844
-0.80000
-0.01000
-0.21500
0.60000
0.58000
-0.25500

Six
month
0.89205
-0.13229
0.73788
-0.75660
0.00329
-0.13600
0.77500
0.83000
-0.17500

One
year
1.19400
-0.02514
1.00275
-0.67300
0.09686
-0.02800

Short
7 Days
One
Three
Six
One
Mar 07
term
notice
month
month
month
year
Euro
-0.35 -0.25 -0.35 -0.25 -0.40 -0.25 -0.33 -0.18 -0.25 -0.10 -0.11 0.04
Sterling
- 0.45 0.55 0.55 0.65 0.70 0.85 0.93 1.08
Swiss Franc
Canadian Dollar
US Dollar
0.35 0.45 0.35 0.45 0.35 0.45 0.55 0.65 0.80 0.90 1.15 1.25
Japanese Yen
-0.20 -0.05 -0.20 -0.05 -0.40 -0.20 -0.25 -0.05 -0.10 0.10 -0.05 0.15
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs:
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA.

COMMODITIES
Energy
Price*
Crude Oil
Mar
36.42
Brent Crude Oil
40.63
RBOB Gasoline
Mar
1.35
Heating Oil
Mar
1.16
Natural Gas
Mar
1.66
Ethanol
Uranium
Mar
36.75
Carbon Emissions
Diesel
Unleaded (95R)
Base Metals ( LME 3 Months)
Aluminium
1586.50
Aluminium Alloy
1600.00
Copper
4985.00
Lead
1876.00
Nickel
9305.00
Tin
17265.00
Zinc
1817.00
Precious Metals (PM London Fix)
Gold
1267.90
Silver (US cents)
1566.00
Platinum
1002.00
Palladium
571.00
Bulk Commodities
Iron Ore (Platts)
64.20
Iron Ore (The Steel Index)
62.60
GlobalCOAL RB Index
53.60
Baltic Dry Index
354.00

www.ft.com/commodities

Change
0.22
1.74
0.01
0.04
-0.02
0.00
0.00
0.00
-10.50
11.00
70.00
315.00
-30.50
-9.60
23.00
42.00
21.00
10.70
10.20
0.00
5.00

Agricultural & Cattle Futures


Corn
Wheat
Soybeans
Soybeans Meal
Cocoa (ICE Liffe)X
Cocoa (ICE US)
Coffee(Robusta)X
Coffee (Arabica)
White SugarX
Sugar 11
Cotton
Orange Juice
Palm Oil
Live Cattle
Feeder Cattle
Lean Hogs

S&P GSCI Spt


DJ UBS Spot
R/J CRB TR
Rogers RICIX TR
M Lynch MLCX Ex. Rtn
UBS Bberg CMCI TR
LEBA EUA Carbon
LEBA CER Carbon
LEBA UK Power

Apr
Mar
Apr

Price*
360.75
464.50
884.00
272.50
2206.00
2878.00
1360.00
115.40
420.70
14.81
57.69
124.15
136.43
158.33
70.98

Change
5.75
11.00
13.75
4.80
-3.00
0.00
0.00
0.00
-4.80
0.02
0.59
0.00
0.00
0.80
0.00

Mar 04
323.90
79.37
172.04
1986.28
231.14
12.25
5.96
0.36
3032.00

% Chg
Month
10.94
4.95
5.84
-9.84
6.93
-14.86
-2.70
-8.45

% Chg
Year
-21.43
-21.26
-22.09
-33.05
-21.91
-14.98
-10.00
56.53

May
May
May
May
May
Mar
Mar
Mar
May

Sources: NYMEX, ECX/ICE, CBOT, X ICE Liffe, ICE Futures, CME, LME/London Metal Exchange.* Latest prices, $
unless otherwise stated.

Stock

Price Day Chg

52 Week
High
Low

Sweden (SKr)
AtlasCpcoB
193.70 -1.30 270.00 162.60
Ericsson
79.10
0.05 120.00 70.65
H&M
289.30 -0.80 363.70 259.80
Investor
288.30 -3.50 363.40 256.80
Nordea Bk
86.85 -0.90 115.50 77.25
SEB
84.90 -0.65 111.50 75.95
SvnskaHn
108.30 -0.30 421.50 95.85
Swedbank
172.90 -3.40 223.90 150.80
TeliaSonera
40.73 -0.14 55.85 37.04
Volvo
88.60 -0.50 120.50 72.20
Switzerland (SFr)
ABB
18.43
0.13 22.16 15.94
CredSuisse
15.40 -0.05 28.94 12.23
Nestle
71.55
0.05 77.00 65.70
Novartis
72.20
0.55 103.20 69.05
Richemont
67.00
1.45 87.55 62.25
Roche
251.80
1.10 283.90 238.00
Swiss Re
89.75 -0.35 99.75 76.85
Swisscom
501.50
2.90 580.50 452.70
Syngent
406.00
1.20 435.20 288.50
UBS
16.55
0.08 22.57 15.01
Zurich Fin
225.50
0.40 334.60 194.70
Taiwan (NT$)
Chunghwa Telecom 106.00 106.00 93.10
Formosa PetChem
89.20 -7.10 90.20 63.90
HonHaiPrc
81.60 -1.30 99.70 72.70
MediaTek
235.00 -29.00 467.00 193.50
TaiwanSem
152.00 14.50 155.00 112.50
Thailand (THB)
PTT Explor
286.00
9.00 370.00 197.00
United Arab Emirates (Dhs)
Emirtestele
18.85
0.10 19.05 10.50
United Kingdom (p)
AscBrFd
3343
2.00
3606 2705.75
AstraZen
4016.5 -4.50 4931.68
3746
Aviva
461.90 -4.20 578.68 400.10
Barclays
173.70 -0.60 289.90 147.75
BP
365.55 -2.35 499.25 252.55
BrAmTob
4008.5 -36.00 4090.5 3231.5
BSkyB
1014 -9.00
1180 953.50
BT
465.70 -4.30 502.60 404.00
Compass
1220 -15.00
1298 963.00
Diageo
1859 -15.00 1979.5 1592.5
GlaxoSmh
1375
5.00
1645 1227.5
Glencore
170.75 10.75 318.46 66.67
HSBC
450.35 -3.20 674.57 420.15
Imperial Brands 3660.5 -15.00
3831 3460.5
LlydsBkg
72.75 -0.49 89.35 55.84
Natl Grid
940.50 -4.00 992.50 806.40
Prudential
1326.5 -20.00 1761.5 1045.99
RBS
230.30 -0.30 380.70 215.90
ReckittB
6436 -103.00
6782
5403
RELX
1224 -3.00
1279 988.50
RioTinto
2237 107.00
3072
1557
RollsRoyce
721.50 -1.00
1061 497.00
RylDShlA
1674 -3.50
2122
1256
SABMill
4215.5 -9.50 4226.5
2773
Shire
3766 -16.00
5870
3423
StandCh
481.75 -4.35
1166 373.40
Tesco
191.80
1.05 252.52 137.00
Vodafone
218.30 -2.95 258.00 197.70
WPP
1548 17.00
1616
1273
United States of America ($)
21stC Fox A
28.09
0.29 35.85 22.66
3M
159.63 -0.44 167.70 134.00
AbbottLb
39.26
0.08 51.74 36.00
Abbvie
56.29
0.14 71.60 45.45
Accenture
102.11 -1.07 109.86 86.40
Adobe
85.63 -0.55 96.42 71.27
AEP
63.22
0.79 63.90 52.29
Aetna
108.81
0.75 134.40 92.42
Aflac
60.77 -0.26 66.53 51.41
AirProd
135.11
0.32 155.79 114.64
Alexion
149.44
4.98 208.88 130.51
Allegran
287.49 -1.18 340.34 237.50
Allstate
65.18 -0.21 72.51 54.12
Alphabet
719.42 -10.80 810.35 529.00
Altria
62.08 -0.90 63.08 47.31
Amazon
564.55 -10.59 696.44 365.65
AmerAir
42.00
0.37 56.05 34.10
AmerExpr
58.38
0.09 83.54 50.27
AmerIntGrp
52.51
0.21 64.93 50.20
AmerTower
96.00
0.06 104.12 83.07
Amgen
147.24
1.26 181.81 130.09
Anadarko
44.45 -0.81 95.94 28.16
Anthem
132.60
0.25 173.59 115.63
Aon Cp
98.86 -0.07 104.70 83.83
Apple
102.09 -0.92 134.54 92.00
ArcherDan
37.16 -0.49 53.31 29.86

Yld

P/E MCap m

1.47
4.08
3.11
2.96
6.34
5.31
3.65
6.23
6.99
3.21

17.75
25.50
24.00
14.75
10.74
11.16
14.88
12.92
12.82
19.94

8904.08
28357.76
49779.7
15469.25
41435.34
21703.12
23880.19
23056.57
20776.01
16938.96

4.28
2.97
3.64
2.28
3.05
4.71
4.22
2.77
4.34
-

22.02 42729.1
7.55 30191.95
16.43 228495.6
26.06 193588.65
22.57 35030.05
25.48 177188.79
37.36 33324.27
19.86 26020.31
29.06 37796.41
10.68 63817.79
11.76 33977.56

4.27
0.89
4.13
8.72
2.76

22.24 25133.04
41.88 25971.29
9.13 39003.14
12.36 11288.22
13.91 120468.14

3.65 43.16

23045.4

3.20 21.77 40575.18


1.02 46.85 37591.67
4.62 45.37 72124.66
3.92 12.09 26563.07
3.74 -73.57 41473.1
7.36 -13.35 95983.31
3.69 18.61 106142.7
3.23 27.76 24758.41
2.45 17.55 65901.51
2.25 23.37 28493.61
3.03 18.92 66454.56
5.82 6.81 95120.44
6.70-397.09 34911.85
7.64 10.30 125928.5
3.61 20.69 49846.75
2.06 43.38 73836.95
4.56 16.39 50028.37
2.78 13.50 48471.82
- -10.33 38027.96
2.16 27.35 64601.57
2.12 28.27 35554.7
6.10 22.25 43668.03
1.95 161.05 18843.19
7.50 101.18 100094.53
1.76 34.92 97057.3
0.41 24.62 31700.65
9.32 -8.31 22432.8
0.60 -2.76 22178.92
5.14 -40.88 82348.37
2.47 16.00 28468.53
1.03 24.14 31445.27
2.48 21.84 96582.25
2.36 23.69 57839.48
3.46 18.59 90696.6
1.96 24.06 82323.46
73.11 42672.03
3.28 18.27 31029.48
0.89 16.66 37060.69
2.51 10.78 25523.48
2.31 23.16 29135.44
- 231.91 33667.54
- -35.35 113468.87
1.77 13.39 24655.73
32.68 210491.98
3.37 24.15 121543.51
- 468.85 265813.87
0.92 3.94 25326.76
1.87 12.00 56280.97
1.49 33.02 60357.53
1.82 70.83 40694.17
2.07 16.87 110737.88
2.34 -3.50 22600.1
1.82 14.67 34653.94
1.12 21.02 27079.42
1.92 11.28 566046.48
2.90 12.95 22069.26

Stock

52 Week
High
Low

Price Day Chg

AT&T
38.08
0.15 38.14 30.97
AutomData
86.26
0.07 90.67 64.29
Avago Tech
144.97 -1.09 150.50 100.00
BakerHu
47.41
1.21 70.45 37.58
BankAm
13.59
0.05 18.48 10.99
Baxter
39.83
0.37 43.44 32.18
BB & T
34.34 -0.15 41.90 29.95
BectonDick
148.75 -0.40 157.50 128.87
BerkshHat 208300.01 355.01223011.49 186900
Biogen
270.77
6.83 480.18 242.07
BkNYMeln
38.06 -0.03 45.45 32.20
BlackRock
326.95
3.19 380.99 275.00
Boeing
122.03
0.96 155.99 102.10
BrisMySq
66.53
1.82 70.87 51.82
CapOne
69.25 -0.34 92.10 58.49
CardinalHlth
84.15
0.64 91.91 74.73
Carnival
47.34 -0.63 55.77 40.52
Caterpillar
75.30
2.46 89.62 56.36
CBS
51.61
0.21 63.95 38.51
Celgene
104.39
1.88 140.72 92.98
CharlesSch
27.50
0.35 35.72 21.51
ChevrnTx
90.08
2.15 112.20 69.58
Chubb
116.15 -1.03 134.49 94.35
Cigna
139.48
0.54 170.68 119.81
Cisco
27.04
0.24 29.90 22.46
Citigroup
42.68 -0.15 60.95 34.52
CME Grp
93.55 -1.25 100.87 81.87
Coca-Cola
44.06 -0.05 44.18 36.56
Cognizant
57.01 -0.73 69.80 51.22
ColgtPlm
67.73 -0.43 71.56 50.84
Comcast
59.26 -0.49 64.99 50.01
ConocPhil
41.65
0.53 69.72 31.05
Corning
19.42
0.46 24.85 15.42
Costco
149.91 -0.99 169.73 117.03
CrownCstl
86.48 -0.77 88.46 75.71
CSX
25.51
0.28 37.67 21.33
CVS
98.83 -0.45 113.65 81.37
Danaher
90.13 -0.58 97.62 81.25
Deere
85.12
0.24 98.23 70.16
Delphi
70.64 -0.89 90.57 55.59
Delta
48.23 -0.44 52.77 34.61
Devon Energy
24.30
0.99 70.48 18.07
DiscFinServ
48.53 60.57 42.86
Disney
99.34
0.86 122.08 86.25
DominRes
71.03
0.41 76.59 64.54
DowChem
49.91 -0.38 57.10 35.11
DukeEner
75.85
0.68 80.10 65.50
DuPont
64.64
1.46 76.61 47.11
Eaton
58.51
0.56 73.82 46.19
eBay
24.31 -0.10 29.83 21.52
Ecolab
105.97 -0.36 122.48 98.62
EMC
26.52
0.21 28.77 22.66
Emerson
51.69
0.43 62.75 41.25
EOG Res
74.45
3.04 101.36 57.15
EquityResTP
71.80
0.33 82.53 61.90
Exelon
33.76
0.40 34.98 25.09
ExpScripts
71.81
0.12 94.61 65.55
ExxonMb
83.75
1.46 90.09 66.55
Facebook
106.75 -1.64 117.59 72.00
Fedex
144.22
0.31 185.19 119.71
FordMtr
13.72
0.13 16.74 10.44
Franklin
38.42 -0.05 54.85 31.00
GenDyn
132.06 -3.22 153.76 121.61
GenElectric
30.33 -0.13 31.49 19.37
GenMills
59.69 -0.51 60.24 47.43
GenMotors
31.63
0.26 39.00 24.62
GileadSci
89.43
2.22 123.37 81.89
GoldmSchs 155.21 -1.63 218.77 139.05
Halliburton
35.63
0.75 50.20 27.64
HCA Hold
72.76 -0.24 95.49 43.91
Hew-Pack
11.36
0.18 16.16
8.91
HiltonWwde
21.72 -0.17 31.60 16.16
HomeDep
126.01
0.45 135.47 92.17
Honywell
107.28 -0.87 111.86 87.00
HumanaInc
183.54
0.29 219.79 155.24
IBM
139.63
1.83 176.30 116.90
IllinoisTool
97.70 -0.03 100.14 78.79
Illumina
160.86
4.72 242.37 130.00
Intcntl Exch
233.39 -5.61 268.89 220.28
Intel
31.03
0.40 35.59 24.87
Intuit
99.23
0.05 109.21 79.63
John&John 106.66
0.16 107.41 81.79
JohnsonCn
37.89 -0.08 54.52 33.62
JPMrgnCh
59.85 -0.21 70.61 50.07
Kimb-Clark
131.28 -1.26 133.73 103.04
KinderM
18.62
0.10 44.71 11.20
Kraft Heinz
76.88 -0.32 81.20 61.42
Kroger
37.43
0.59 42.75 27.32
L Brands
87.17 -0.33 101.11 75.11
LasVegasSd
51.33 -0.47 59.90 34.88
LibertyGbl
37.32 -0.03 58.66 30.65
Lilly (E)
73.70
0.10 92.85 68.31

BONDS: HIGH YIELD & EMERGING MARKET

Close
Prev
Day
Week
price
price
change change %
change change %
Naspers N
1964.00
2002.00
-38.00
-1.90 -186516.00
-99.0
MTN Grp
147.82
142.10
5.72
4.03 -13232.18
-98.9
Firstrand
49.26
48.28
0.98
2.03
-4383.74
-98.9
ValeantPh
81.64
81.64
0.00
0.00
-12.85
-13.6
Sinopec Oil
5.71
5.66
0.05
0.88
-0.82
-12.6
Luxottica
48.78
48.78
0.00
0.00
-3.97
-7.5
CntJpRwy
19345.00 19965.00
-620.00
-3.11
-1550.00
-7.4
OilNatGas
200.70
197.20
3.50
1.77
-15.35
-7.1
KoreaElePwr
56800.00 58400.00
-1600.00
-2.74
-3800.00
-6.3
Kroger
37.43
36.84
0.59
1.60
-2.48
-6.2
BT
465.70
470.00
-4.30
-0.91
-20.80
-4.3
JardnMt US$
54.40
56.49
-2.09
-3.70
-2.10
-3.7
Compass
1220.00
1235.00
-15.00
-1.21
-46.00
-3.6
EquityResTP
71.80
71.47
0.33
0.46
-2.69
-3.6
NTTDCMo
2541.50
2584.50
-43.00
-1.66
-86.50
-3.3
Nike
59.63
61.26
-1.63
-2.66
-1.96
-3.2
MTR
36.00
36.35
-0.35
-0.96
-1.15
-3.1
GenDyn
132.06
135.28
-3.22
-2.38
-4.21
-3.1
BSkyB
1014.00
1023.00
-9.00
-0.88
-29.00
-2.8
Iberdrola
5.80
5.88
-0.08
-1.28
-0.16
-2.7
Based on the FT Global 500 companies in local currency

Month
change %
1.44
4.72
8.10
-33.44
-9.65
-4.59
-12.66
-5.80
8.60
-0.40
-2.47
1.30
-0.01
-2.42
-8.66
4.32
1.55
-1.56
-1.50
-8.12

BOND INDICES
Since
16-12-2015
16-12-2008
16-12-2015
10-09-2014
05-03-2009
05-10-2010
15-01-2015

INTEREST RATES: MARKET


Over
night
0.37200
-0.28643
0.48125

Yld

FT 500: BOTTOM 20
Day
change change %
0.00
0.00
0.00
0.00
10.75
6.72
0.99
4.25
0.53
1.29
0.45
2.35
0.00
0.00
0.00
0.00
5.65
3.09
2.50
1.15
0.88
4.98
107.00
5.02
-0.81
-1.79
0.44
3.54
24.00
2.19
3.04
4.26
0.00
0.00
0.00
0.00
0.29
2.68
0.00
0.00

Close
Prev
price
price
Vale
16.55
16.55
Petrobras
9.98
9.98
Glencore
170.75
160.00
Devon Energy
24.30
23.31
ConocPhil
41.65
41.12
Williams Cos
19.60
19.15
CanNatRs
34.40
34.40
Bradesco
28.16
28.16
SBI NewA
188.40
182.75
ICICI Bk
220.50
218.00
BHPBilltn
18.55
17.67
RioTinto
2237.00
2130.00
Anadarko
44.45
45.26
ChShenEgy
12.86
12.42
Nissan Mt
1120.50
1096.50
EOG Res
74.45
71.41
CredSuisse
15.45
15.45
ItauHldFin
26.10
26.10
Repsol
10.93
10.64
Cielo
35.54
35.54
Based on the FT Global 500 companies in local currency

Mar 07
US
US
US
Euro
UK
Japan
Switzerland

52 Week
High
Low

Finland ()
Nokia
5.59 -0.02
7.87
4.91 2.39 -40.31
33424
SampoA
41.34 -0.28 49.40 36.76 4.50 14.41 25372.66
France ()
Airbus Grpe
61.48 -0.62 68.50 49.96 1.86 17.82 53032.18
AirLiquide
98.63
1.06 123.95 90.77 2.37 21.08 37289.59
AXA
21.06 -0.30 26.02 18.80 4.13 11.01 56113.47
BNP Parib
45.63 -0.86 61.00 37.00 3.13 8.31 62465.73
ChristianDior 164.40
0.30 195.35 140.80 1.76 13.56 32814.1
Cred Agr
9.86 -0.21 14.49
7.59 3.38 22.11 28588.9
Danone
63.68 -0.08 67.74 51.73 2.16 45.89 45809.04
EDF
10.12 -0.73 23.66
9.13 11.32 5.81 21342.84
Engie SA
14.01 -0.20 19.73 13.05 6.54 41.05 37473.75
Esslr Intl
110.90
1.40 125.15 95.01 0.84 42.27 26365.81
Hermes Intl
321.15
0.95 365.55 281.20 0.84 39.63 37237.9
LOreal
153.90 -1.80 181.30 140.40 1.61 32.02 95164.13
LVMH
154.65
1.30 176.60 130.75 1.90 14.89 86115.26
Nmrcble-SFR
33.62 -0.22 60.01 27.05 - -43.38 16182.82
Orange
15.77 -0.14 16.98 12.21 3.49 45.28 45866.56
PernodRic
98.81 -0.45 117.75 88.00 1.74 28.76 28805.56
Renault
87.50
0.54 100.25 59.59 1.99 10.32 28420.47
Safran
58.85
0.05 72.45 48.87 2.01 -60.81 26955.82
Sanofi
72.36 -0.07 101.10 66.44 3.75 19.00 103771.96
Sant Gbn
37.25 -0.41 44.84 31.47 1.53 27.27 22947.01
Schneider
56.71
0.71 75.29 45.32 3.10 21.41 36599.96
SocGen
34.49 -0.62 48.77 26.61 3.32 9.95 30537.51
Total
42.81
0.14 50.30 35.21 5.53 123.13 115387.72
UnibailR
234.65 -1.30 260.50 212.05 3.75 13.07 25436.41
Vinci
63.70 -0.26 64.66 50.08 2.68 18.23 41232.29
Vivendi
19.00 -0.17 24.83 16.30 10.03-231.42 28549.43
Germany ()
Allianz
141.10 -0.05 170.15 126.55 4.63 10.48 70824.31
BASF
63.56
0.28 97.22 56.01 4.20 15.40 64119.79
Bayer
98.25 -0.24 146.45 91.08 2.18 21.17 89237.99
BMW
81.87 -0.76 123.75 66.00 3.38 10.02 54132.36
Continental
197.60 -0.60 234.25 171.30 1.57 15.58 43407.93
Daimler
66.98 -0.32 96.07 57.01 3.49 8.92 78704.96
Deut Bank
17.74 -0.28 33.42 13.03 4.03 -6.10 26874.67
Deut Tlkm
15.38 -0.08 17.63 13.39 3.10 22.58 77818.14
DeutsPost
22.57 -0.10 31.19 19.55 19.81 30063.76
E.ON
8.56 -0.07 14.85
7.08 1.56 -1.94 18813.08
Fresenius Med
75.67 -0.02 83.17 63.10 0.99 25.55 25458.32
Fresenius SE
59.56 -0.79 70.00 51.01 0.70 27.23 35700.9
HenkelKgaA
84.00 -0.07 99.44 75.76 1.46 19.92 23969.04
Linde
132.80
0.70 195.55 113.50 2.26 22.70 27091.1
MuenchRkv
178.00 -1.75 206.50 156.00 4.15 10.06 32618.92
SAP
69.57 -0.32 75.75 53.91 1.51 28.28 93872.37
Siemens
89.28 -0.56 106.35 77.91 3.52 14.87 83351.27
Volkswgn
135.75 -2.75 254.50 95.00 3.37 11.32 43998.02
Hong Kong (HK$)
AIA
41.70 -0.35 58.20 36.85 0.97 20.61 64698.07
BOC Hold
21.40
0.15 33.70 18.82 4.73 9.66 29136.04
Ch OSLnd&Inv
25.35
0.45 34.05 20.45 1.96 7.72 32189.08
ChngKng
46.05
0.45 77.55 38.20 10.72 22888.05
Citic Ltd
11.82 16.40 10.02 1.65 6.17 44278.58
Citic Secs
16.44
0.14 40.50 12.82 1.99 7.77 6178.22
CK Hutchison
98.15 -0.70 174.90 91.80 3.37 4.28 48783.1
CNOOC
9.24
0.14 13.78
6.41 5.56 8.84 53124.67
HangSeng 131.20 -1.30 162.10 121.10 4.12 9.45 32300.83
HK Exc&Clr
173.10 -1.90 311.40 160.10 2.84 27.49 26939.19
MTR
36.00 -0.35 40.00 33.10 2.64 14.61 27163.63
SandsCh
28.55 -0.20 39.15 20.75 6.30 17.19 29666.7
SHK Props
94.60
0.50 137.60 79.00 2.30 9.52 35247.28
Tencent
146.50 -0.70 171.00 124.00 0.23 43.20 177413.6
India (Rs)
Bhartiartl
329.25 -4.15 452.45 282.30 0.66 24.68 19595.7
HDFC Bk
1020.55
4.70
1128 928.00 0.77 23.09 38402.71
Hind Unilevr 848.75 -0.15 981.00 766.40 1.63 40.97 27344.38
HsngDevFin
1129
4.85 1402.15 1011.45 1.30 19.61 26547.61
ICICI Bk
220.50
2.50 349.90 180.75 2.18 10.33 19084.13
Infosys
1170.65
1.35 2298.75 932.65 3.41 20.48 39837.11
ITC
315.20 -2.95 359.80 268.00 1.96 25.56 37734.41
L&T
1193.2 -13.90
1888 1016.05 1.23 22.63 16547.92
OilNatGas
200.70
3.50 343.20 187.75 4.74 9.11 25565.17
RelianceIn
1006.4 -6.45 1089.75 796.45 0.97 11.37 48542.77
SBI NewA
188.40
5.65 305.00 148.25 1.82 9.35 21774.82
SunPhrmInds 856.80 -14.10 1200.8 704.00 0.34 54.13 30701.01
Tata Cons
2357.55 -15.60 2770.7
2115 1.66 21.95 69163.74
Indonesia (Rp)
Bk Cent Asia
13575 15600 11000 0.91 22.62 25573.41
Israel (ILS)
TevaPha
218.60 -0.10 275.90 212.00 2.32 31.84 57110.9
Italy ()
Enel
3.66 -0.05
4.50
3.33 3.64 64.05 37821.62
ENI
13.59
0.05 17.66 10.93 6.73 -18.71 54245.74
Generali
12.74 -0.23 19.21 10.90 4.49 10.81 21785.22
IntSPaolo
2.46 -0.06
3.65
2.12 2.71 14.88 42921.09
Luxottica
48.85
0.07 67.80 48.00 1.40 31.13 25950.53
Unicred
3.56 -0.08
6.61
2.77 3.22 11.68 23306.13

2.80 24.32 186532.5


3.90 8.45 22418.35

15.99 7.63
17.90 3.12
28.03 1.80
21.49 4.48
5.67 8.60 12.15

Price Day Chg

Bid
yield

Mth's Spread
chge
vs
yield
US

Mar 07
High Yield US$
Navient Corporation

S*

F*

Bid
price

06/18

8.45

BB-

Ba3

BB

107.12

5.15

-0.02

-2.20

4.24

High Yield Euro


Kazkommerts Intl BV

02/17

6.88

Caa1

97.50

0.00

0.00

Emerging US$
Mexico
Brazil
Russia
Peru
Peru
Brazil
Colombia
Poland
Turkey
Turkey

09/16
01/18
07/18
03/19
03/19
01/21
07/21
03/22
09/22
04/26

11.40
8.00
11.00
7.13
7.13
7.88
4.38
5.00
6.25
4.25

BBB+
BB+
BB+
BBB+
BBB+
BB+
BBB
A-

A3
Ba2
Ba1
A3
A3
Ba2
Baa2
A2
Baa3
Baa3

BBB+
BB+
BBBBBB+
BBB+
BB+
BBB
ABBBBBB-

106.80
106.05
117.94
114.96
114.01
98.62
102.50
117.38
109.41
94.69

1.49
4.56
3.11
2.07
2.60
5.26
3.89
2.80
4.62
4.98

0.03
-0.16
-0.01
0.00
0.00
-0.01
-0.01
0.00
-0.01
0.00

0.01
-0.96
-0.39
-0.47
0.20
-0.72
-0.61
0.00
-0.11
-0.09

0.44
3.65
2.20
1.16
0.84
3.84
2.47
1.38
3.20
3.07

Emerging Euro
Brazil
02/15
7.38
BBBBaa2
BBB 111.75
0.73
0.00
0.00
0.09
Mexico
07/17
4.25
BBB+
A3
BBB+ 111.13
1.50
0.00
0.00
0.59
Mexico
02/20
5.50
BBB+
A3
BBB+ 121.63
2.06
0.00
0.00
0.64
Bulgaria
09/25
5.75
BB+
BBB- 115.01
3.89
0.00
-0.07
1.98
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poors, M - Moodys, F - Fitch.

VOLATILITY INDICES
Index

Day's
change

Markit IBoxx
ABF Pan-Asia unhedged
Corporates( )
Corporates($)
Corporates()
Eurozone Sov()
Gilts( )
Global Inflation-Lkd
Markit iBoxx Non-Gilts
Overall ($)
Overall( )
Overall()
Treasuries ($)

176.82
294.89
251.39
213.77
230.88
300.39
240.58
297.70
229.42
296.88
225.33
222.48

0.45
0.26
0.14
0.18
0.15
0.25
0.16
0.21
0.03
0.24
0.15
-0.02

0.86
0.04
-0.17
0.17
-0.46
-0.61
-0.11
-0.18
-0.41
-0.48
-0.29
-0.58

2.04
-0.10
0.77
1.17
2.48
4.72
0.95
0.94
1.96
3.59
2.10
2.62

2.01
-0.60
-0.17
0.69
0.40
0.46
-0.54
-0.42
-0.41
0.20
0.45
-0.58

-1.60
-1.24
0.77
-0.93
1.36
6.00
-2.93
0.15
1.96
4.21
0.91
2.62

FTSE
Sterling Corporate ()
Euro Corporate ()
Euro Emerging Mkts ()
Eurozone Govt Bond

109.72
106.78
831.26
115.50

-0.15
0.10
3.51
0.05

-0.16
0.67
3.44
0.32

-3.79
-3.81
-23.06
-2.08

Index

Day's
change

Week's
change

Month's
change

Series
high

Series
low

369.69
90.28
87.28
98.35

-3.84
-2.20
0.43
-0.82

-37.97
-8.60
-10.79
-9.85

-53.11
-19.78
-5.54
-21.63

491.39
125.93
107.91
140.51

280.05
68.39
65.01
65.28

CREDIT INDICES
Markit iTraxx
Crossover 5Y
Europe 5Y
Japan 5Y
Senior Financials 5Y

Month's
change

Year
change

Return
1 month

Return
1 year

Markit CDX
Emerging Markets 5Y
339.49
-4.68
-27.97
-38.30
413.92
299.17
Nth Amer High Yld 5Y
475.68
-12.81
-54.56
-74.17
589.69
416.39
Nth Amer Inv Grade 5Y
95.51
-2.94
-14.69
-19.28
124.57
75.52
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.

BONDS: INDEX-LINKED
Price
Month
Value
No of
Yield
Mar 04
Mar 04
Prev
return
stock
Market
stocks
Can 4.25%' 21
127.41
-0.457
-0.433
0.00
5.18
70831.90
7
Fr 2.25%' 20
113.88
-0.841
-0.840
0.44
20.31 218882.23
14
Swe 0.25%' 22
109.42
-1.053
-1.053
-0.15
30.77 227364.44
7
UK 2.5%' 20
360.56
-1.580
-1.530
0.16
6.58 505485.41
26
UK 2.5%' 24
342.19
-1.055
-1.035
-0.26
6.82 505485.41
26
UK 2%' 35
233.09
-0.866
-0.864
-0.31
9.08 505485.41
26
US 0.625%' 21
103.33
0.004
-0.042
-0.20
35.84 1142397.28
37
US 3.625%' 28
134.95
0.624
-0.042
-0.35
16.78 1142397.28
37
Representative stocks from each major market Source: Merill Lynch Global Bond Indices Local currencies. Total market
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
amount.

BONDS: TEN YEAR GOVT SPREADS


Bid
Yield

Spread Spread
vs
vs
Bund T-Bonds

Australia
2.73
2.51
0.82 Italy
Austria
0.51
0.29 -1.40 Japan
Belgium
0.67
0.44 -1.25 Netherlands
Canada
1.40
1.18 -0.51 Norway
Denmark
0.55
0.32 -1.37 Portugal
Finland
0.57
0.34 -1.34 Spain
France
0.63
0.41 -1.28 Switzerland
Germany
0.23
0.00 -1.69 United Kingdom
Greece
9.39
9.17
7.48 United States
Ireland
0.92
0.69 -1.00
Data provided by SIX Financial Information & Tullett Prebon Information

Bid
Yield
1.50
-0.06
0.36
1.26
3.05
1.66
-0.41
1.59
1.91

Spread Spread
vs
vs
Bund T-Bonds
1.27
-0.29
0.13
1.04
2.82
1.44
-0.63
1.37
1.69

-0.41
-1.98
-1.56
-0.65
1.13
-0.25
-2.32
-0.32
0.00

Stock

4.78 16.72 234325.88


2.23 29.29 39459.73
0.98 31.84 40082.72
1.38 -10.95 20758.65
1.42 10.98 140325.33
3.07 57.40 21821.74
2.95 13.95 26800.7
1.59 47.64 31507.71
14.75 168267.04
18.31 59208.92
1.72 14.60 41597.78
2.57 17.14 53600.78
2.87 17.02 80845.34
2.16 74.07 111069.11
2.09 10.27 36521.06
1.72 21.27 27713.03
2.19 22.24 27350.43
3.76 22.35 43848.84
1.12 18.66 21769.82
55.78 81597.96
0.84 27.76 36314.38
4.58 38.21 169634.72
2.21 13.98 37653.68
0.03 17.70 35674.28
3.11 13.38 136063.53
0.36 8.17 125825.77
2.06 26.30 31657.09
2.89 27.40 190757.67
22.35 34726.02
2.13 46.20 60467.77
1.63 18.97 124110.15
6.80 -12.07 51487.84
2.38 21.81 21611.3
0.98 29.78 65927.01
3.73 62.32 28864.54
2.64 13.24 24569.96
1.37 22.20 108563.85
0.58 25.48 61933.24
2.82 15.48 26840.53
1.36 17.71 19604.98
0.90 8.89 37547.47
3.81 -0.71 10723.45
2.14 9.82 20101.18
1.33 19.26 162080.18
3.51 23.03 42363.66
3.32 8.75 55755.08
4.12 19.58 52213.47
2.56 32.09 56650.95
3.62 14.33 26850.24
15.77 28656.09
1.22 33.07 31367.32
1.67 27.13 51635.7
3.51 14.10 33242.66
0.87 -9.32 40938.82
2.97 31.57 26217.17
3.54 13.79 31056.66
20.93 47972.38
3.31 22.58 347792.95
86.14 244984.83
0.59 39.00 39749.23
4.22 7.72 53470.14
1.58 12.75 22769.46
1.96 15.09 41092.03
2.92 185.13 282997.32
2.73 26.13 35416.77
4.20 5.56 48852.3
1.39 7.79 122237.01
1.58 13.27 66202.76
1.95 -47.40 30582.73
15.13 28882.69
5.61 4.65 19606.2
0.62 15.88 21456.61
1.63 25.68 159759.38
1.93 18.43 82532.96
0.60 22.56 27219.6
3.45 10.65 134844.7
2.04 19.76 35540.03
53.91 23646.42
1.20 21.26 27747.2
2.98 13.80 146585.72
1.11 49.73 25484.37
2.67 20.20 294313.25
2.72 18.38 24561.63
2.77 10.35 219647
2.58 49.18 47378.91
9.99 186.66 41551.57
0.67 -53.76 93423.77
0.94 20.04 36483.87
1.94 23.84
25230
4.88 21.61 40791.67
- -30.25 9434.71
2.62 33.84 81519.09

52 Week
High
Low

Price Day Chg

Lockheed
216.37
Lowes
71.01
Lyondell
82.70
Marathon Ptl
36.35
Marsh&M
57.76
MasterCard
88.72
McDonald's 117.15
McGraw Hill
93.77
McKesson
163.04
Medtronic
75.48
Merck
52.73
Metlife
42.78
Microsoft
51.16
Mnstr Bvrg
127.77
MondelezInt
42.15
Monsanto
88.84
MorganStly
26.10
MylanNV
46.68
Netflix
97.89
NextEraE
114.44
Nike
59.63
NorfolkS
78.66
Northrop
187.80
NXP
77.74
Occid Pet
69.78
Oracle
38.16
Pepsico
99.16
Perrigo
128.31
Pfizer
29.69
Phillips66
87.12
PhilMorris
93.41
PNCFin
87.15
PPG Inds
102.87
Praxair
108.55
Priceline
1291
ProctGmbl
83.38
Prudntl
71.98
PublStor
249.36
Qualcomm
53.17
Raytheon
123.92
Regen Pharm 409.16
ReynoldsAm
51.76
Salesforce
70.55
Schlmbrg
75.42
Sempra Energy
96.67
Shrwin-Will 275.84
SimonProp
199.96
SouthCpr
26.94
Starbucks
57.95
StateSt
58.69
Stryker
102.81
Sychrony Fin
28.40
Target
80.80
TE Connect
60.07
Telsa Mtrs
205.51
TexasInstr
55.34
TheTrvelers
110.21
ThrmoFshr
140.83
TimeWrnr
69.65
TimeWrnrC
195.10
TJX Cos
75.95
T-MobileUS
39.00
UnionPac
81.00
UPS B
100.81
USBancorp
40.74
UtdHlthcre
122.46
UtdTech
96.93
ValeroEngy
63.52
Verizon
52.19
VertexPharm
90.21
VF Cp
65.91
Viacom
40.13
Visa Inc
72.23
Walgreen
79.78
WalMartSto
68.20
WellsFargo
50.03
Williams Cos
19.60
Yahoo
34.22
Yum!Brnds
77.89
Venezuela (VEF)
Bco de Vnzla 130.00
Bco Provncl
4100
Mrcntl Srvcs
6000

-2.35 227.91
0.62 78.13
0.70 107.32
-0.71 60.38
-0.25 59.99
-1.33 101.76
-0.03 124.83
-1.29 109.13
0.27 243.61
-0.13 79.50
0.65 61.70
0.45 58.23
-0.87 56.85
-1.12 160.50
0.02 48.58
2.95 123.82
-0.03 41.04
1.90 76.69
-3.69 133.27
0.15 116.98
-1.63 68.20
1.26 111.76
-3.27 194.80
1.11 114.00
0.06 82.03
0.27 45.24
-0.84 103.44
1.70 215.73
-0.02 36.46
1.34 94.12
-1.08 94.91
-0.15 100.52
0.38 118.69
-0.24 128.08
-6.71 1476.52
-0.12 85.11
0.51 92.60
-0.59 257.98
0.51 74.09
-1.14 129.99
5.34 605.93
0.05 52.25
-0.51 82.90
0.59 95.13
-1.19 112.90
-0.98 294.35
1.44 208.14
33.31
-0.75 64.00
0.02 81.26
-0.64 105.34
-0.20 36.40
-0.33 85.81
0.01 73.73
4.47 286.65
0.45 59.67
-0.19 116.48
0.53 143.65
0.84 91.34
-0.23 195.74
0.55 76.93
0.52 43.43
0.50 118.66
0.41 107.32
-0.29 46.26
0.66 126.21
-0.07 122.19
-0.37 73.88
0.38 52.28
1.85 143.45
0.51 77.40
1.31 73.52
-1.67 81.01
0.33 97.30
1.42 83.90
-0.08 58.77
0.45 61.38
0.36 46.17
-0.16 95.90
-5.00
-

143.95
4400
6200

Yld

P/E MCap m

181.91 2.74 19.59 66099.55


62.62 1.32 24.38 64981.58
69.10 3.54 8.94 35742.98
29.24 3.02 7.17 19237.42
50.81 1.97 20.11 30104.77
74.61 0.73 27.49 96658.86
87.50 2.83 25.35 105623.36
78.55 1.36 23.11 24877.18
148.29 0.61 17.72 37268.25
55.54 1.67 46.98 106136.63
45.69 3.31 35.00 146339.39
35.00 3.32 9.71 46915.41
39.72 2.43 37.77 408660.84
113.08 46.70 25927.07
33.97 1.46 9.85 66119.53
81.22 2.13 24.80 39121.18
21.16 2.03 9.31 51124.91
37.59 28.43 22954.75
58.46 - 361.49 41904.87
93.74 2.59 19.60 52701.43
47.25 1.14 30.72 80494.34
64.51 2.89 15.90 23456.31
152.31 1.59 18.76 33981.14
61.61 13.22 26898.26
58.22 4.10 -6.81 53301.13
33.13 1.41 19.44 160318.56
76.48 2.68 28.03 143327.13
122.62 0.35 135.53 18784.85
28.25 3.64 27.76 183607.12
69.79 2.41 11.69 45952.31
75.27 4.17 21.92 144724.55
77.67 2.22 12.19 43671.32
82.93 1.33 20.77 27442.18
95.60 2.54 21.05 30918.96
954.02 27.09 64055.02
65.02 3.04 28.07 225493.15
57.19 3.27 6.14 32103.08
182.08 2.51 42.63 43206.45
42.24 3.37 18.37 79483.16
95.32 2.08 19.05 37051.83
350.26 76.92 42092.08
33.71 2.59 20.90 73879.19
52.60 - -571.90 46845.2
59.60 2.56 48.01 94515.77
86.72 2.79 18.66 24091.69
218.27 0.94 25.65 25451.41
170.99 2.92 35.29 62949.52
21.55 1.22 30.17 20843.67
42.05 1.13 36.88 85655.9
50.73 2.17 13.63 23680.6
86.68 1.33 28.24 38346.3
23.74 11.12 23680.74
66.46 2.41 19.66 49776.97
51.70 2.05 22.41 22478.03
141.05 - -30.76 27138.9
43.49 2.44 20.35 55630.96
95.21 2.08 10.52 32509.45
117.10 0.41 29.64 55805.57
55.53 1.94 15.78 55034.25
145.44 1.85 31.72 55266.05
63.53 0.93 25.16 50848.26
31.19 49.10 31823.01
67.06 2.62 15.31 68559.56
87.30 2.79 19.57 69577.8
37.07 2.39 13.36 70778.24
95.00 1.48 21.14 116419.44
83.39 2.55 22.20 81077.45
51.68 2.58 8.25 29879.34
38.06 4.12 12.40 212593.39
78.51 - -40.52 22226.13
52.21 1.94 23.99 27977.15
30.11 3.67 8.94 13903.26
60.00 0.67 27.35 138618.83
71.50 1.65 20.56 86062.43
56.30 2.63 15.90 218369.12
44.50 2.84 12.60 253984.88
10.22 12.05 -26.76 14701.29
26.15 -7.65 32399.89
64.58 2.09 27.69 31834.54
33.00
1060
1550

35120.55
0.12 55.17 32747.6
0.13 47.29 26400.6

Closing prices and highs & lows are in traded currency (with variations for that
country indicated by stock), market capitalisation is in USD. Highs & lows are
based on intraday trading over a rolling 52 week period.
ex-dividend
ex-capital redistribution
# price at time of suspension

Mar 07
US$
Halliburton Company
Korea Electric Power Corporation
SouthTrust Bank
Anheuser-Busch Cos, Inc.
SunTrust Banks, Inc.
FleetBoston Financial Corp.
Euro
Credit Agricole S.A.
Electricite de France (EDF)
BHP Billiton Fin Ltd
B.A.T. Netherlands Fin B.V. (Re - British American Tobacco)
Yen
Wal-Mart Stores, Inc.
Sterling
IPIC GMTN Limited
B.A.T. Intl Fin plc (Re - British American Tobacco)

Red
date Coupon

Ratings
M*

Bid
yield

Day's
chge
yield

Mth's Spread
chge
vs
yield
US

F*

Bid
price

02/27
08/27
12/27
12/27
01/28
01/28

6.75
6.75
6.57
6.75
6.00
6.88

A
AAA
ABBB+
BBB

A2
Aa2
Aa3
A2
Baa1
Baa3

AAAA+
A
AA-

118.96
101.72
120.79
124.77
111.51
122.66

4.58
6.64
4.34
4.12
4.78
4.45

0.00
0.00
0.00
0.00
0.00
0.00

-0.27
0.03
-0.03
0.24
0.06
0.00

2.66
4.73
2.43
2.21
-

03/27
03/27
09/27
03/29

2.63
4.13
3.25
3.13

BBB
A+
A+
A-

Baa3
A1
A3
A3

AA
A+
A-

97.03
122.21
109.58
113.16

2.94
1.91
2.29
1.97

0.00
0.00
0.00
0.00

-0.36
0.00
-0.71
-0.15

1.03
0.00
0.38
-

07/15

0.94

NR

WR

NR

100.00

0.31

0.00

0.00

03/26
09/26

6.88
4.00

AA
A-

Aa2
A3

AA
A-

122.65
104.67

4.11
3.47

0.06
0.06

0.12
0.29

1.82
1.18

S*

Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poors, M Moodys, F - Fitch.

GILTS: UK CASH MARKET

Mar 07
Day Chng
Prev
52 wk high
52 wk low
VIX
17.19
0.33
16.86
53.29
10.88
VXD
16.90
0.13
16.77
56.32
7.04
VXN
21.39
0.58
20.81
46.72
11.15
VDAX
23.07
1.30
21.77
32.55
CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility.
Deutsche Borse. VDAX: DAX Index Options Volatility.

BONDS: BENCHMARK GOVERNMENT


Red
Bid
Date Coupon
Price
Australia
10/18
3.25 103.29
11/27
2.75 100.17
Austria
10/19
0.25 99.98
10/25
1.20 106.41
Belgium
06/18
0.75 101.83
06/26
1.00 103.29
Canada
11/17
0.25 99.49
06/26
1.50 100.94
Denmark
11/18
0.25 101.54
11/25
1.75 111.33
Finland
05/18
1.00 99.65
04/26
0.50 99.35
France
05/19
1.00 104.34
11/20
0.25 102.09
05/26
0.50 98.69
05/45
3.25 137.66
Germany
04/19
0.50 103.16
10/20
0.25 103.04
02/26
0.50 102.70
08/46
2.50 138.72
Greece
07/17
3.38 92.15
02/26
3.00 63.40
Ireland
10/17
5.50 109.47
05/26
1.00 100.81
Italy
10/18
0.30 100.74
11/20
0.65 101.24
06/26
1.60 101.00
03/47
2.70 101.14
Japan
02/18
0.10 100.64
03/21
0.05 101.04
12/25
0.30 103.59
12/45
1.40 117.54
Netherlands
04/17
0.50 101.12
07/25
0.25 99.03
New Zealand
03/19
5.00 107.74
04/27
4.50 113.26
Norway
05/19
4.50 112.60
03/25
1.75 104.11
Portugal
06/19
4.75 111.38
02/26
3.30 102.15
Spain
04/18
0.25 100.51
04/26
1.95 102.66
Sweden
10/18
1.00 99.53
05/25
2.50 117.50
Switzerland
05/19
3.00 113.12
05/26
1.25 117.31
United Kingdom
07/18
1.25 101.83
01/21
1.50 102.95
07/26
1.50 99.10
12/46
4.25 141.89
United States
01/18
0.75 99.70
02/21
1.13 98.58
02/26
1.63 97.40
02/46
2.50 95.54
Data provided by SIX Financial Information & Tullett Prebon Information

P/E MCap m

BONDS: GLOBAL INVESTMENT GRADE


Day's
chge
yield

Ratings
M*

Red
date Coupon

Yld

Bid Day chg Wk chg Month


Year
Yield
yield
yield chg yld chg yld
1.95
0.04
0.23
0.19
0.00
2.73
0.03
0.22
0.11
0.00
0.26
0.00
0.00
0.00
0.00
0.51
-0.01
0.11
-0.03
0.00
-0.07
0.00
0.00
0.00
0.00
0.67
-0.04
0.08
-0.06
0.00
0.56
0.03
0.02
0.21
0.00
1.40
0.04
0.10
0.23
0.00
-0.32
0.00
0.00
0.00
0.00
0.55
-0.01
0.10
0.03
0.00
1.17
0.00
0.07
0.15
0.00
0.57
-0.03
0.00
0.00
0.00
-0.34
0.00
0.00
0.00
0.00
-0.19
0.00
0.00
0.00
0.00
0.63
-0.04
0.00
0.00
0.00
1.62
-0.02
0.15
0.03
0.00
-0.51
0.00
0.00
0.00
0.00
-0.40
0.00
0.00
0.00
0.00
0.23
-0.02
0.12
0.01
0.00
1.01
0.01
0.18
0.11
0.00
9.81
-0.52
-1.47
-3.06
0.00
9.39
-0.17
-0.69
-0.68
0.00
-0.35
0.00
0.00
0.00
0.00
0.92
-0.02
0.04
-0.08
0.00
0.01
0.00
-0.03
-0.12
0.00
0.38
-0.02
-0.02
-0.24
0.00
1.50
-0.01
0.04
0.00
0.00
2.66
-0.02
0.11
-0.18
0.00
-0.23
0.00
0.00
0.00
0.00
-0.16
0.00
0.00
0.00
0.00
-0.06
0.00
0.00
0.00
0.00
0.69
-0.04
-0.17
-0.37
0.00
-0.51
0.00
0.00
0.00
0.00
0.36
-0.02
0.10
-0.02
0.00
2.33
0.02
0.05
-0.16
0.00
3.08
0.02
0.13
0.05
0.00
0.52
0.00
0.00
-0.04
0.00
1.26
0.01
0.04
0.00
0.00
1.17
0.05
-0.05
0.07
0.00
3.05
0.00
0.07
0.00
0.00
0.01
0.00
-0.03
-0.11
0.00
1.66
0.03
0.07
-0.19
0.00
1.19
0.00
0.12
0.18
0.00
0.54
0.00
0.06
0.07
0.00
-1.04
0.00
0.00
0.00
0.00
-0.41
0.00
0.00
0.00
0.00
0.47
0.00
0.09
0.05
0.00
0.88
0.00
0.14
0.03
0.00
1.59
0.00
0.13
0.00
0.00
2.33
0.02
0.07
0.13
0.00
0.91
0.05
0.13
0.24
0.00
1.42
0.04
0.21
0.00
0.00
1.91
0.04
0.18
0.00
0.00
2.72
0.02
0.10
0.00
0.00

Red
52 Week
Amnt
Change in Yield
Mar 07
Price
Yield
Day
Week
Month
Year
High
Low
m
Tr 4pc '16
101.78
0.41
0.00
10.81
17.14
2.50 102.23 100.00
0.35
Tr 1.75pc '17
101.18
0.40
0.00
33.33
14.29
-31.03 102.48 101.18
0.29
Tr 5pc '18
109.37
0.29
-3.33
45.00
-12.12
-66.67 112.88 109.34
0.35
Tr 4.5pc '19
112.11
0.43
-2.27
34.38
-18.87
-61.95 114.29 111.04
0.36
Tr 4.75pc '20
116.28
0.62
-1.59
24.00
-15.07
-53.38 118.06 114.45
0.33
Tr 1.5pc '21
103.02
0.87
-1.14
19.18
-12.12
-41.61 141.03
99.91
0.20
Tr 4pc '22
117.92
0.92
-2.13
19.48
-11.54
-41.77 119.14 113.65
0.38
Tr 5pc '25
130.72
1.36
-0.73
12.40
-6.85
-26.88 132.97 124.47
0.35
Tr 4.25pc '27
127.70
1.65
-0.60
9.27
-4.07
-20.29 130.43 119.79
0.31
Tr 4.25pc '32
130.74
2.02
0.00
5.76
-1.94
-14.04 134.41 121.93
0.35
Tr 4.25pc '36
133.02
2.20
0.00
4.76
-1.79
-11.65 137.18 123.52
0.28
Tr 4.5pc '42
143.31
2.32
0.43
3.11
-1.28
-9.73 148.39 132.20
0.26
Tr 3.75pc '52
136.62
2.27
0.44
3.18
-0.87
-12.69 142.78 121.95
0.22
Tr 4pc '60
150.08
2.21
0.45
3.27
-1.34
-14.01 157.42 131.72
0.22
xd Ex dividend. Closing mid-prices are shown in pounds per 100 nominal of stock. Red yield: Gross redemption yield.
This table shows the gilts benchmarks & the non-rump undated stocks.

GILTS: UK FTSE ACTUARIES INDICES


Price Indices
Fixed Coupon
1 Up to 5 Years
2 5 - 10 Years
3 10 - 15 Years
4 5 - 15 Years
5 Over 15 Years
7 All stocks
Index Linked
1 Up to 5 Years
2 Over 5 years
3 5-15 years
4 Over 15 years
5 All stocks
Yield Indices
5 Yrs
10 Yrs
15 Yrs

Day's
chg %
0.03
0.09
0.09
0.09
-0.11
-0.01

Mar 07
98.20
182.63
212.33
189.74
308.98
175.90
Mar 07
309.76
583.33
436.06
720.93
538.62
Mar 07
0.78
1.55
2.04

Day's
chg %
0.04
0.06
0.15
0.03
0.06

Mar 04
0.79
1.56
2.05

Yr ago
1.38
2.01
2.37

Total
Return
2396.90
3346.14
3954.79
3493.20
4519.38
3331.43

Month
chg %
-0.08
-2.11
-0.36
-2.79
-1.82

Return
1 month
-0.06
-0.27
-0.83
-0.43
-1.80
-0.87

Year's
chg %
-0.59
8.97
2.33
12.09
7.93

20 Yrs
45 Yrs

inflation 0%
Mar 07
Dur yrs Previous
Yr ago
Mar 07
Real yield
Up to 5 yrs
-1.30
2.19
-1.28
-1.16
-2.00
Over 5 yrs
-0.92
23.74
-0.91
-0.52
-0.94
5-15 yrs
-0.96
9.47
-0.95
-0.65
-1.07
Over 15 yrs
-0.91
29.32
-0.91
-0.51
-0.93
All stocks
-0.92
20.72
-0.92
-0.53
-0.96
See the FTSE website for more details: http://www.ftse.com/products/indices/gilts

Total
Return
2376.47
4310.97
3324.83
5225.14
4033.39
Mar 07
2.27
2.23

Return
1 year
2.57
5.88
7.00
6.17
9.50
6.28

Yield
0.58
1.18
1.76
1.42
2.25
1.95

Return
1 month
-0.08
-2.11
-0.36
-2.79
-1.82

Return
1 year
0.86
9.78
3.67
12.69
8.85

Mar 04
2.27
2.22

Yr ago
2.56
2.66

inflation 5%
Dur yrs Previous
2.21
-1.98
23.82
-0.94
9.48
-1.06
29.36
-0.93
20.86
-0.96

Yr ago
-1.78
-0.56
-0.77
-0.53
-0.57

All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
loss arising from the reliance on or use of the listed information. For all queries e-mail
ft.reader.enquiries@morningstar.com

Data provided by Morningstar | www.morningstar.co.uk

24

FINANCIAL TIMES

Tuesday 8 March 2016

MANAGED FUNDS SERVICE


Fund

Bid

Offer D+/- Yield

ACPI Global UCITS Funds Plc

(IRL)

www.acpishard.com
Regulated

Fund

Bid

Offer D+/- Yield

Atlantis Investment Management Ltd

(IRL)

0.88 0.00

ACPI Global Credit UCITS Funds USD A $ 13.87

0.02 0.00

ACPI Global Fixed Income UCITS Fund USD A $ 152.97

-0.05 0.00

Q ACPI India Fixed Income UCITS Fund USD A $

9.85

0.03 0.00

ACPI India Fixed Income UCITS Fund USD A3 $ 84.15

0.21 0.00

ACPI International Bond UCITS Fund USD A $ 18.25

-0.02 0.00

ACPI Select UCITS Funds PLC

(IRL)

Regulated
ACPI Balanced UCITS Fund USD Retail $ 13.70

0.09 0.00

ACPI Balanced UCITS Fund EUR Retail 10.31

0.07 0.00

ACPI Balanced UCITS Fund GBP Retail 10.44

0.07 0.00

ACPI Balanced UCITS Fund USD Institutional $ 10.00

ACPI Balanced UCITS Fund EUR Institutional 10.00

ACPI Balanced UCITS Fund GBP Institutional 10.00

ACPI Horizon UCITS Fund

$ 12.43

0.02 0.00

Regulated

Offer D+/- Yield

6.44

0.00 0.00

Atlantis China Healthcare Fund

1.76

0.02 0.00

Atlantis Japan Opportunities Fund $

2.57

-0.01 0.00

Atlantis Asian Fund

6.18

0.02 0.00

AXIOM

UK Multi-Strategy Managed

4.71

5.07 0.14 0.00

Invesco Global Conservative Fund 90 (EUR) A 11.81

0.01 0.00

High Income

0.8415xd

-0.0012 5.10

Mir.- EqEurope ExUK Sm&Mid

105.01

1.08

EU Multi-Strategy Managed

2.90

3.13 0.08 0.00

Invesco Global Equity Income Fund A $ 55.95

-0.50 0.00

International

4.1240

0.0180 0.90

Mir. - Eq Glb Emrg Mkt A USD

$ 85.73

0.29 0.00

Middle East & Developing Africa Fund (Final) $ 19.81

0.00

Global Bond USD

3.42

3.69 0.01 0.00

Invesco Global Inc Real Estate Sec A dist $

-0.03 0.00

Saudi Arabia Equity Fund

(IRL)

Algebris Financial Credit Fund - Class I EUR 128.74

0.17 0.00

Algebris Financial Income Fund - Class I EUR 111.27

0.36 0.00

Algebris Financial Equity Fund - Class B EUR 90.84

0.19

Algebris Asset Allocation Fund - Class B EUR 97.24

0.13

Amundi Funds

(LUX)
5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332
www.amundi-funds.com
FCA Recognised
Bd. Euro Corporate AE Class - R - EUR 18.37

-0.03 0.00

Bd. Global AU Class - R - USD

$ 25.77

0.01 0.00

Eq. Emerging Europe AE Class - R - EUR 26.83

-0.24 0.00

Eq. Emerging World AU Class - R - USD $ 78.58

0.60 0.00

Eq. Greater China AU Class - R - USD $ 528.66

4.76 0.00

Eq. Latin America AU Class - R - USD $ 327.44

7.09 0.00

Gl. Macro Bds & Curr Low Vol AHG - GBP 98.31

0.05 0.00

609.36

22.1056

0.0299 1.92

Europ.RealEstate Sec. IX

29.6469

0.0401 0.00

Gbl Listed Infrastructure I

$ 10.0224

0.0670

Gbl Listed Infrastructure IX

$ 10.0659

0.0672

Gbl RealEstate Sec. I

$ 10.6269

0.0072 1.75

-1.68 0.00

Arisaig Partners

0.0086 0.00

Crdit Andorr Asset Management

(LUX)

1.61

Crediinvest SICAV Money Market Eur I 11.22

0.00 0.00

1.33 0.00

Crediinvest SICAV Money Market Usd A $ 10.04

0.00 0.00

Crediinvest SICAV Fixed Income Eur 10.52

0.00 0.00

BLME Asset Management

(LUX)

BLME Sharia'a Umbrella Fund SICAV SIF


Regulated
Income Fund - Share Class A Acc $ 1138.74

0.16 0.00

Income Fund - Share Class G Acc 1080.54

0.14 0.00

Gl Sukuk Fund - Share Class A Acc $ 1227.38

0.43 0.00

Gl Sukuk Fund - Share class B Acc 1096.02 1096.02 0.37 0.00

Bank of America Cap Mgmt (Ireland) Ltd

(IRL)

Crediinvest SICAV Fixed Income Usd $ 10.46

0.01 0.00

Crediinvest SICAV Spanish Value 233.37

2.93 0.00

Crediinvest SICAV International Value 225.36

3.83 0.00

Crediinvest SICAV Big Cap Value 15.12

0.23 0.00

Crediinvest SICAV US American Value $ 17.80

0.07 0.00

Crediinvest SICAV Sustainability 14.70

-0.03 0.00

1.00

1.02 0.00

110.98 115.42 0.64

ENISO Forte E

Bond Funds
Sterling Bond F

0.45

0.00 3.28

Barings (Luxembourg)

(LUX)

FCA Recognised

(LUX)

Regulated
Davis Value A

$ 37.80

0.17 0.00

Davis Global A

$ 27.48

0.37 0.00

Dodge & Cox Worldwide Funds

ENISO Forte G (CHF)

SFr 136.05

1.14 0.00

ENISO Forte G (CHF)

124.42

0.11 0.00

ENISO Systematic Risk Class 1

95.16

-0.12

0.57 0.00

BlackRock

(JER)

Regulated
BlackRock UK Property

41.75

0.04 3.39

Blackrock UK Long Lease

1080.33

BLK Intl Gold & General

5.49 0.03 0.00

5.21

Arisaig Asia Consumer Fund Limited $ 59.24

-0.01 0.00

Arisaig Global Emerging Markets Consumer UCITS 11.31

0.01 0.00

Bonhte Alternative - Multi-Arbitrage (USD) Classe (EUR) 6513.00

Arisaig Global Emerging Markets Consumer UCITS STG 11.18

0.05 0.00

Bonhte Alternative - Multi-Performance (USD) Classe (EUR) 9400.00

Arisaig Latin America Consumer Fund $ 20.87

0.44 0.00

0.39 0.00

BONHOTE
Other International Funds
-

-94.00 2.32
-349.00 0.97

(IRL)
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland
Tel: 44 (0) 207 766 7130
FCA Recognised
Artisan Emerging Markets I USD Acc $

6.77

UK Agricultural Class A

1.24

-0.01 0.00

UK Agricultural Class B

1.37

0.00 0.00

0.06 0.00

Artisan Global Opportunities I USD Acc $ 11.69

0.04 0.00

Artisan Global Value Fund Class I USD Acc $ 15.44

0.09 0.00

0.19 0.00

Ashmore Sicav

(LUX)

2 rue Albert Borschette L-1246 Luxembourg


FCA Recognised
Ashmore SICAV Emerging Market Debt Fund $ 90.67

0.55

-0.17 0.00

0.10 0.00

Artisan Global Equity Fund Class I USD Acc $ 13.31

Artisan US Value Equity Fund Class I USD Acc $ 10.76

(GSY)

Regulated

Student Accom Class B

Artisan Partners Global Funds plc

CG Asset Management Limited

(IRL)
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland
00 353 1 434 5098
FCA Recognised

0.25 1.23

Ashmore SICAV Emerging Market Total Return Fund $ 78.55

0.65 6.48

Ashmore SICAV Global Small Cap Equity Fund $ 121.76

1.85 0.00

Dodge & Cox Worldwide Funds plc - Global Bond Fund

EUR Accumulating Class (H)

EUR Distributing Class (H)


GBP Distributing Class

11.52

9.05

10.91

8.56

10.27

0.02 0.00

0.05 0.00

0.02 3.68

0.04 3.77

0.03 3.43

GBP Distributing Class (H)

8.65

0.04 3.77

USD Accumulating Class

9.14

0.05 0.00

Real Return Cls A

179.16 179.16 -3.31 1.61

Dollar Fund Cls D

139.44 139.44 -3.11 1.50

Capital Value Fund Cls V

133.47 133.47 -0.23 0.26

Ashmore SICAV Local Currency Fund $ 82.06

0.81 0.00

EM Mkts Corp.Debt USD F

$ 82.67

0.65 9.82

EM Mkts Loc.Ccy Bd USD F

$ 77.36

1.03 3.56

Cedar Rock Capital Limited

(IRL)

Regulated
-

6.49 0.00

NAV

493.94

Equinox Fund Mgmt (Guernsey) Limited

Smaller Cos Cls One Shares

Smaller Cos Cls Two Shares

34.27

24.00

(CYM)

0.57 0.00
0.36 0.00

Aspect Diversified USD

$ 455.10

6.64 0.00

Aspect Diversified EUR

273.06

4.05

Aspect Diversified GBP

140.16

2.11 0.00

Raffles-Asia Investment Company $

1.49

-4.43 0.00

1.49 -0.07

SFr 130.26

1.86 0.00

Aspect Diversified Trends USD

$ 132.16

-0.31 0.00

European Opportunities A EUR

2.25

0.03 1.08

Aspect Diversified Trends EUR

132.18

-0.29 0.00

Global Opportunities I USD

1.52

0.01 1.35

137.60

-0.32 0.00

Cheyne Capital Management (UK) LLP


Regulated
Cheyne Convertibles Absolute Return Fund 1312.27

Atlantas Sicav

(LUX)

Regulated
American Dynamic

$ 3230.61

16.57 0.00

American One

$ 3043.53

-10.96 0.00

Bond Global

1409.60

22.21 0.00

Eurocroissance

846.84

9.48 0.00

$ 613.43

-4.85 0.00

(IRL)

Cheyne Global Credit Fund


Cheyne European Mid Cap Fund

116.05
1121.00

1.65 0.00
0.31 0.00

2.53

0.05 1.84

Global Opportunities I GBP

1.07

0.00 1.49

Global Opportunities A GBP

1.01

0.00 0.89

Pan European Opportunities I EUR

1.39

0.01

3.07 0.00

Cheyne European Event Driven Fund 130.96

Cheyne Real Estate Credit Holdings Fund 163.55

0.68 0.00

Cheyne Real Estate Credit Holdings Fund III 112.89

0.49 0.00

Cheyne Real Estate Debt Fund Class A1 131.50

-0.63 0.00

EFG Hermes

0.00

0.09 0.00

$ 87.02

0.00 0.00

Invesco Stlg Bd A QD F

Hermes Abs Return Credit Fund Class R Acc

1.97

1.97 -0.01

(IRL)

Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200


FCA Recognised

Invesco Asian Equity A

2.54

5.86

0.00 3.39
0.00 0.00

-0.95

Regulated
The M&G Offshore Fund Range

Morant Wright Funds (Ireland) PLC

(IRL)

Corporate Bond

1300.04 1340.25 0.66 3.25

Global Basics

2391.26 2465.21 -0.34 0.28

Morant Wright Fuji Yield EUR Dist Hedged

9.76

-0.03 2.50

3291.54 3428.69 -6.16 1.07

Morant Wright Fuji Yield GBP Acc Hedged 10.09

-0.04 0.00

Global High Yield Bond

926.58 955.24 4.12 4.67

Morant Wright Fuji Yield GBP Dist Hedged

9.82

-0.03 0.97

Global Macro Bond Fund

11852.46 12219.03 35.94 2.19

Morant Wright Fuji Yield USD Acc Hedged $

9.84

-0.03 0.00

North American Dividend Fund

165.81 172.71 1.30 2.22

Morant Wright Fuji Yield USD Dist Hedged $

9.86

-0.04 2.58

Optimal Income Fund

138.34 142.62 0.43 2.82

Morant Wright Fuji Yield YEN Acc 1019.99

-3.63 0.00

Recovery Fund Limited 'A' Participating Shares

9483.23 9878.37 -39.63 0.53

Morant Wright Fuji Yield B YEN Acc 900.37

-3.19

Recovery Fund Limited 'I' Participating Shares

9475.47 9571.18 -39.14 1.37

Morant Wright Fuji Yield YEN Dist 998.83

-3.56 2.56

Strategic Corporate Bond Fund

130.17 135.59 0.15 3.08

Morant Wright Sakura Fund Sterling Acc Hedged 12.34

-0.13 0.00

UK Select

1442.06 1502.15 -10.19 1.13

Morant Wright Sakura Fund Euro Acc Hedged 12.34

-0.13 0.00

Morant Wright Sakura Fund Yen Acc Unhedged 1266.56

-13.81 0.00

Morant Wright Sakura Fund Dollar Acc Hedged $ 12.28

-0.13 0.00

Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 12.21

-0.13 0.00

Global Leaders

MFS Investment Funds

(LUX)

FCA Recognised

Hermes Asia Ex-Japan Equity Fund Class R Acc

3.32

3.32 0.03 0.00

Invesco Continental Eurp Small Cap Eqty A $ 187.45

-1.04 0.00

Blend.Research Gb.Eq.Fd.

98.38

-0.07 0.00

Hermes Global Emerging Markets Fund Class F Acc

1.21

1.21 0.01 0.00

Invesco Emerging Markets Equity A $ 34.16

0.24 0.00

Blend.Research Gb.Eq.Fd.

102.34

0.20 0.00

Hermes Global Emerging Markets Fund Class R Acc

2.88

2.88 0.01 0.00

Invesco Emerging Markets Bond A $ 20.58

0.04 4.66

Blend.Research U.S.Core Eq.Fd.

9447.00

45.00 0.00

Hermes Global Equity Fund Class F Acc

1.54

1.54 0.00 0.00

Invesco Continental European Equity A

7.83

-0.10 1.26

Blend.Research Gb.Eq.Fd.

$ 95.59

0.58 0.00

Hermes Global Equity Fund Class R Acc

3.82

3.82 0.01 0.00

Invesco Gilt A

15.41

-0.05 1.32

Em.Mk.Eq.Fund Euro

106.07

0.57 0.00

Hermes Global ESG Equity Fund Class F Acc

1.20

1.20 0.00 0.00

Invesco Global Small Cap Equity A NAV $ 113.78

0.10 0.00

Em.Mk.Eq.Fund Sterling

96.58

0.78 0.00

1.11

1.11 0.01 0.00

Invesco Global High Income A NAV $ 11.80

0.05 6.14

Em.Mk.Eq.Fd.US Dollar

$ 89.17

1.09 0.00

Asset Management

FCA Recognised

Asset Management

Morgan Stanley Investment Funds

Hermes Global High Yield Bond Fund Class R Acc

2.73

2.73 0.02 0.00

Invesco Gbl R/Est Secs A GBP F F

8.14

-0.02 0.95

Gb.Conc.Eq.Fd.Euro

272.75

0.32 0.00

(LF) Eq Flexi Style Greece

0.94

-0.05 0.00

Hermes Global Small Cap Fund Class F Acc

1.03

1.03 0.01

Invesco Global Health Care A

$ 111.81

-0.52 0.00

Gb.Conc.Eq.Fd.Sterl.UK T

176.79

0.68 0.00

US Advantage A F

$ 54.68

0.19 0.00

(LF) Eq Mena Fund

12.67

0.08 0.00

Hermes Global Small Cap Fund Class R Acc

1.90

1.90 0.01

Invesco Global Select Equity A

$ 12.04

-0.07 0.08

Gb.Conc.Eq.Fd.Sterling

267.42

1.04 0.00

Asian Equity A F

$ 38.30

0.27 0.00

(LF) Greek Government Bond

16.97

0.04

Hermes Multi Asset Inflation Fund Class F GBP Acc

0.97

0.97 0.00 0.00

Invesco Jap Eqty Core A

1.78

-0.02 0.09

Gb.Conc.Eq.Fd.US

$ 190.08

1.51 0.00

Asian Property A F

$ 17.46

0.11 0.00

(LF) Greek Corporate Bond

11.47

0.02

Hermes Multi Strategy Credit Fund Class F Acc Hed

1.02

1.02 0.00 0.00

Invesco Japanese Equity A

$ 17.84

-0.15 0.00

Gb.Eq.Hdg Fd.Euro IRE T

178.80

0.95 0.00

Diversified Alpha Plus A F

29.03

0.04 0.00

(LF) FOF Dynamic Fixed Inc

11.69

-0.04 0.00

Hermes Sourcecap EU Alpha Fund Class F Acc

1.29

1.29 -0.02 0.00

Invesco Korean Equity A

$ 30.92

-0.34 0.00

Gb.Eq.Euro Hdg Fd.

253.29

1.35 0.00

Emerg Europ, Mid-East & Africa Eq A F 63.12

0.46 0.00

(LF) FOF Real Estate

16.39

-0.05 0.00

Hermes Sourcecap EU Alpha Fund Class F Dis

1.25

1.25 -0.02 1.33

Invesco PRC Equity A

$ 46.22

0.41 0.00

Gb.Eq.Fund Euro

275.64

0.42 0.00

Emerging Markets Debt A F

$ 75.65

0.25 0.00

Hermes Sourcecap EU Alpha Fund Class R Acc

2.95

2.95 -0.03 0.00

Invesco Pacific Equity A

$ 45.48

0.11 0.08

Gb.Eq. Fd Euro IRE T

174.46

0.27 0.00

Emerging Markets Domestic Debt AX F 11.01

0.07 5.28

Hermes Sourcecap EX UK Fund Class F Acc

1.37

1.37 -0.02 0.00

Invesco Global Technology A

$ 14.20

0.05 0.00

Gb.Eq.Fd.Sterling UK T

216.04

0.92 0.00

Emerging Markets Equity A F

$ 31.90

0.34 0.00

Hermes Sourcecap EX UK Fund Class R Acc

3.04

3.04 -0.02 0.00

15.94

0.00 0.00

Hermes UK Small & Mid Cap Fund Class F Acc

1.52

1.52 0.03 0.00

0.09 1.55

Hermes UK Small & Mid Cap Fund Class R Acc

4.30

4.30 0.08 0.00

Hermes US All Cap Equity Class F Stg Acc

1.02

1.02 0.00

Hermes US All Cap Equity Class R Acc

1.90

1.90 0.01

Hermes US SMID Equity Fund Class F Acc

1.72

Hermes US SMID Equity Fund Class R Acc

3.46

(LUX)

China Consumer A-GBP

14.15

0.19 0.00

China Focus A-GBP

0.08 0.76

4.16
0.44

0.56

0.01 0.12
0.01 0.00

Global Telecomms A-GBP

0.30

0.00 1.10

India Focus A-GBP

4.28

0.02 0.00

Latin America A-GBP

1.49

0.05 0.63

Sterling Cash Fund A-ACC-GBP

1.00

0.00 0.00

(IRL)

30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900


FCA Recognised
American Fund USD Class

$ 79.33

American Fund GBP Hedged


American Fund GBP Unhedged

43.21

56.05

$ 12.02
8.62

0.11

7.72

-0.11 1.57

Invest AD
Client services: +971 2 692 6101 clientservices@InvestAD.com
Other International Funds

2.53 0.00

213.41

0.91 0.00

Euro Corporate Bond AX F

22.87

Gb.Val.Ex-Jap.Fd.USD

$ 115.94

0.63 0.00

Euro Strategic Bond A F

43.61

-0.01 0.00

Gb.Val.Ex-Japan Fd.Yen

12974.00

95.00 0.00

European Currencies High Yield Bd A F 21.19

0.07 0.00

Gb.Val.Fd. Euro

130.41

-0.43 0.00

European Equity Alpha A F

40.10

0.14 0.00

1.72 0.01 0.00

Invest AD - Emerging Africa Fund $ 890.57

2.91 0.00

Gb.Val.Fd.Sterling

122.98

-0.07 0.00

European Property A F

32.86

0.08 0.00

3.46 0.03 0.00

Invest AD - GCC Focus Fund

-0.06 0.00

Gb.Val.Fd.USD

$ 103.46

0.36 0.00

Eurozone Equity Alpha A F

10.81

0.03 0.00

Low Volatility Gb.Eq.Fd.Euro

104.52

-0.28 0.00

Global Bond A F

$ 38.81

0.18 0.00

Low Volatility Gb.Eq.Fd.Sterl

108.73

0.00 0.00

Global Brands A F

$ 97.90

1.03 0.00

0.42 0.00

Global Convertible Bond A F

$ 40.41

0.10 0.00

Global Property A F

$ 27.02

0.19 0.00

Indian Equity A F

$ 32.34

0.28 0.00

Latin American Equity A F

$ 39.22

1.39 0.00
0.00 0.00

$ 1351.95

Other International Funds

Low Volatility Gb.Eq.Fd.USD

8.19

-0.04 0.00

Intercapital Asset Management Ltd

(HRV)

Low Volatility Gb.Eq.Fd.Yen

GAM
funds@gam.com, www.jbfundnet.com
Regulated

Other International Funds

Ms EF Special Val. EUR/A

137.54

0.47 1.17

Strategy Balanced-CHF/B

SFr 146.27

0.32 0.00

Strategy Balanced-EUR

151.26

0.13 0.00

Strategy Balanced-USD/B

$ 126.78

0.25 0.00

SFr 89.57

0.31 0.00

112.15

0.18 0.00

Strategy Inc-CHF/B

SFr 117.80

0.09 0.00

Strategy Inc-EUR/B

157.86

-0.02 0.00

Strategy Inc-USD/B

$ 145.10

0.09 0.00

Capital One Bond Fund (Ex-YU) HRK 205.96

0.26
0.31

(IRL)
Intrinsic Value Investors (IVI) LLP
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210
FCA Recognised

0.24 0.00

IVI European Fund EUR

17.50

0.07 0.00

0.17

IVI European Fund GBP

18.25

0.12 0.66

Strategy Growth-CHF/B
Strategy Growth-EUR

$ 101.55
9014.00

54.00

MMIP Investment Management Limited

Masarykova ul. 1, 10000, Zagreb, Croatia


www.icam.hr, Tel; +385 1 4825 868

(GSY)

Regulated

Foord Asset Management

Short Maturity Euro Bond A F

20.32

European Equity Fd Cl A Initial Ser 2642.19 2642.19 62.94 0.00

US Dollar Liquidity A F

$ 13.03

0.00 0.00

Japanese Equity Fd Cl A Initial Ser 368031.00 368031.00 6127.00 0.00

US Growth A F

$ 62.79

0.40 0.00

MMIP - US EQUITY CLASS A 01 June 07 Series $ 1304.31 1304.31 168.32 0.00

US Growth AH F

43.49

0.27 0.00

Pacific Basin Fd Cl A Initial Ser

$ 2059.34 2059.34 -82.99 0.00

US Growth AX F

44.17

0.02 0.00

UK Equity Fd Cl A Series 01

2254.95 2282.59 -63.67 0.00

US Property A F

$ 68.88

0.19 0.00

Multi-Manager Investment Programmes PCC Limited

Diversified Absolute Rtn Fd USD Cl AF2 $ 1545.97

-43.80 0.00

Diversified Absolute Return Stlg Cell AF2 1563.76

-46.61 0.00

Other International Funds


Phaeton Intl (BVI) Ltd (Est)

LNG Capital

$ 382.29

5.84 0.00

(CYM)

$ 33.94

0.29 0.00

Regulated

Foord Global Equity Fund_Class B $ 11.83

0.12 0.00

LNG Europa Credit Fund EUR

1158.57

14.16 0.00

LNG Europa Credit Fund GBP

1177.97

14.90 0.00

LNG Europa Credit Fund USD

$ 1179.48

14.37 0.00

Invesco

Franklin Emerging Market Debt Opportunities Fund Plc


Franklin Emg Mkts Debt Opp CHFSFr 16.57

0.13 8.43

Franklin Emg Mkts Debt Opp EUR 11.69

0.14 7.49

Franklin Emg Mkts Debt Opp GBP

9.96

0.20 7.11

Franklin Emg Mkts Debt Opp SGD S$ 21.58

0.24 6.41

Franklin Emg Mkts Debt Opp USD $ 16.51

0.22 7.27

Frontier Capital (Bermuda) Limited


Other International

(LUX)

Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282


FCA Recognised
Invesco Management SA
Invesco Active Multi-Sector Credit Fund A

2.83

0.00 0.00

$ 13.72

0.03 3.95

Invesco Asia Consumer Demand Fund A income $ 11.64

0.02 0.27

Invesco Asia Balanced A dist

Invesco Asia Infrastructure (A)

$ 11.97

0.05 0.85

Invesco Asia Opportunities Equity A $ 95.36

-0.39 0.00

Invesco Balanced Risk Allocation Fund A 14.69

0.01 0.00

Invesco Emerging Europe Equity Fund A $

7.78

0.16 0.00

Invesco Emerging Local Currencies Debt A Inc $

6.73

0.06 7.00

Commercial Property-GBP Class

71.42

-0.53

Invesco Emerging Mkt Quant.Eq. A $

Global Real Estate-GBP C Class

45.26

-0.50

Invesco Energy A

(GSY)

$ 181.59 185.29 6.66 0.00

Generali Worldwide

Global Multi-Strategy Managed

Morgens Waterfall Vintiadis.co Inc

Kingsbury House, 15-17 King St, London SW1Y 6QU


www.lngcapital.com, Tel: 0207 839 3456

Other International Funds


Foord International Trust

$ 303.27

Gb.Eq.Fund Sterling

-0.10 0.00

www.invil.mu
NAV

Gb.Eq.Fd.US Dollar

INDIA VALUE INVESTMENTS LIMITED (INVIL)

Capital Two Equity Fund (Ex-YU) HRK 89.66

0.12 0.00

Invesco UK Eqty A

Euro Bond A F

Invest AD - Iraq Opportunity Fund $ 55.53

0.22 0.00

International Insurances
-

0.01 0.00

Other International Funds


-

$ 29.28

$ 85.95

PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108

$ 29.93

Invesco US Value Eq Fd A

MW Japan Fund PLC C

0.71

DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE
Contact: Telephone + 971 4 363 4029 Email AMsales@EFG-HERMES.com
The EFG-Hermes Egypt Fund

0.14 0.00

-0.23

Taurus Emerging Fund Ltd

-3.58 0.00

-0.23

(LF) Eq Emerging Europe

Regulated

Other International Funds

$ 21.27

$ 23.92

(LUX)
6b Route de Trves L-2633 Senningerberg Luxembourg (352) 34 64 61
www.morganstanleyinvestmentfunds.com
FCA Recognised

GYS Investment Management Ltd

Cheyne Capital Management (UK) LLP

Invesco US Structured Equity A

$ 23.75

MW Japan Fund PLC B

0.00 0.00

JPMorgan House - International Financial Services Centre,Dublin 1, Ireland


Other International Funds

-0.01 2.85

MW Japan Fund PLC A

Franklin Templeton International Services Sarl (IRL)

European Opportunities I USD

(GSY)

(IRL)

FCA Recognised

1.31

(IRL)

0.03 1.77

0.98

M & G (Guernsey) Ltd

Other International Funds

31.09

Dealing Daily

MW Japan Fund Plc

(LF) Absolute Return

Findlay Park Funds Plc

1.77

0.0090 0.00

Hermes Global High Yield Bond Fund Class F Acc

0.00 0.00

Hermes Abs Return Credit Fund Class F Acc

Asset Management

0.03 0.00

European Opportunities I GBP

0.0090 0.00

$ 1.3290

-0.05 0.28

0.03 1.67

Global USD Growth Strategy

-0.01 1.98

1.8170

0.11 0.00

0.27

2.29

Aggressive Strategy

1.44

-12.00 0.00

5.89

$ 92.12

European Opportunities I EUR

Invesco Latin American Equity A $

$ 27.05

0.02 1.05

Invesco Japanese Value Eq Fd A 1136.00

Invesco Bond A

Global Technology A-GBP

0.0060 1.32

Invesco ASEAN Equity A

Global Real Asset Securities

1.05

0.0000 1.97

1.62 0.01 0.00

0.02 0.62

1.4840

1.31 0.01 0.00

0.04 0.00

Emerging Opportunities I USD $

1.0970

Growth Strategy

1.62

$ 601.15

Conservative Strategy

Invesco Global Asset Management Ltd

1.07 0.00

0.0010 0.10

-0.01 0.00

(IRL)
Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
FCA Recognised
1.07

-14.00 0.00

1.31

Edinburgh Partners Opportunities Fund PLC

0.02

52.6280

Lloyds Multi Strategy Fund Limited

Hermes Asia Ex-Japan Equity Fund Class F Acc

12.00

$ 280178.65 280178.65 -2935.25 0.00

Sterling Class

Hermes Active UK Inflation Fund Class F Acc

18.88

27-31 Melville Street, Edinburgh EH3 7JF


Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230
FCA Recognised

$ 99.75

Lloyds Money Fund Limited

$ 48.24

0.22 0.00

GBP Distributing Share Class

Other International Funds

Mir. - US Shrt Term Credit Fd

Invesco India Equity A

Monthly Share

Invesco Japanese Equity Adv Fd A 3504.00

0.27 0.00

GBP Accumulating Share Class

Edinburgh Partners Limited

0.14 0.00

0.09 0.00

0.00 0.56

Chartered Asset Management Pte Ltd

$ 103.41

$ 40.81

11.95

1.16

-0.39

Mir. - Glb Strat. Bd A USD

Invesco Greater China Equity A

15.53

Global Inflation-Linked Bd A-GBP-Hdg

-0.04

0.03 0.00

Smaller Cos Cls Four Shares

0.01 0.00

94.68

5.99 0.00

Global Growth I1 Eur

0.44 0.00

100.76

0.01 0.00

4.58

Smaller Cos Cls Three Shares

Latin American Fund USD Class

0.00 0.01

Mir. - Glb Inv Grade Bds A

Invesco Gold & Precious Metals A $

Invesco UK Investment Grade Bond A

Hermes Investment Funds Plc

Latin American Fund GBP Unhedged

Mir. - Glb Eq High Income A USD $ 95.50

Invesco Global Total Ret.(EUR) Bond Fund A 12.86

Invesco USD Reserve A

Equinox Russian Opportunities Fund Limited $ 116.66

0.67

-0.53 0.00

0.27 0.00

(GSY)

Regulated

Global Industrials A-GBP

126.64

138.81

-2.06 0.00

USD Accumulating Share Class

Global Growth I2 Acc

-0.0070 1.79

-0.20 0.00

17.38 0.00

(IRL)

Heartwood Caut Multi Asset B Acc

Other International Funds

Dodge & Cox Worldwide Funds plc-U.S. Stock Fund

www.dsmsicav.com
Regulated

0.45

1.2470xd

Invesco UK Eqty Income A

(IRL)

Regulated

Ennismore European Smlr Cos Hedge Fd

Global Health Care A-GBP

(LUX)

0.09 0.00

0.14 0.00

DSM Capital Partners Funds

$ 106.48

-0.08 0.00

0.01 0.00

3.60 0.00

Mir. - Glb High Yield Bds A

13.42

-0.0060 1.79

EUR Accumulating Share Class

3.60

SFr 330.85

Invesco Pan European Structured Equity A 16.35

Global Financial Services A-GBP

Vietnam Enterprise Inv. (VEIL) NAV $

Mir. - Eq Swiss Sm/Mid A

Lloyds Gilt Fund Quarterly Share 1.2990

Invesco Pan European Small Cap Equity A 21.23

Heartwood Wealth Management Limited

0.18 0.00

-0.01 0.00

Lloyds Gilt Fund Limited

-0.03 0.79

-0.98 0.00

-0.04 0.00

$ 12.54

0.91

Invesco Global Structured Equity A $ 44.23

Ennismore European Smlr Cos NAV 137.62

USD Accumulating Share Class

Vietnam Property Fund (VPF) NAV $

Invesco Global Smaller Comp Eq Fd A $ 54.74

-0.02 2.59

0.10 1.02

Dragon Capital Group

0.27 0.00

0.01 0.00

Invesco Pan European High Income Fd A 13.27

12.59

23.74

-39.65 0.00

GBP Distributing Share class

20.35

Mir. -Eq Spain A

2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg


Phone: 800 22 089, 800 22 088
Regulated

EUR Accumulating Share Class

0.0030 1.54

SFr 1135.44

0.14 0.00

0.08 0.00

Haussmann Cls D

6.4080

-0.46 0.00

17.31

$ 17.26

UK

GBP Accumulating Share Class

0.14 0.00

-0.05 0.00

Ennismore European Smlr Cos NAV 106.57

FIL Fund Management

-0.28 0.00

0.16 0.00

20.43

$ 34.85

EUR Accumulating Share Class

0.61 0.00

Invesco Global Leisure A

Invesco Pan European Equity A EUR Cap NAV 17.36

21.36 0.00

CAM GTi Limited

Haussmann

-74.42 0.00

Regulated

Other International Funds

0.01 0.00

109.17

CAM-GTF Limited

0.01 0.00

$ 92.69

Mir. - EqPanEuropeSm&Mid

2148.67

337.80

Charles Schwab Worldwide Funds Plc

Aspect Capital Ltd (UK)

0.60

Mir. - Eq Global Focus A USD

-0.0020 3.63

Haussmann Cls C

397.19

1.00

0.50

0.0600 0.10

5 Kensington Church St, London W8 4LD 020 7368 4220


FCA Recognised

Cedar Rock Capital Fd Plc

Holiday Property Bond Ser 2

1.4370

2.00 0.00

Cedar Rock Capital Fd Plc

Schwab USD Liquid Assets Fd

Holiday Property Bond Ser 1

16.0100

Sterling Bond

$ 14.97

1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Fund information, dealing and administration: funds@dragoncapital.com

$ 352.56

International Insurances

North American

0.00 3.06

Invesco Nippon Small/Mid Cap Equity A 968.00

USD Accumulating Share Class

CG Portfolio Fund Plc

Cedar Rock Capital Fd Plc

Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490

-0.02 2.27

-84.37 0.00

Regulated

Capital Gearing Portfolio Fund Plc 27558.34 27558.34 -25.77 0.60

0.35 9.00

Ashmore SICAV Emerging Market Frontier Equity Fund $ 137.92

0.04 0.00

Eurobank Fund Management Company (Luxembourg) S.A.

Dodge & Cox Worldwide Funds plc-International Stock Fund

Braemar Group PCC Limited


Artisan Partners Global Funds PLC

9.14

$ 2462.81

(IRL)

Dodge & Cox Worldwide Funds plc-Global Stock Fund


0.03 0.00

5.41

Invesco Global Inv Grd Corp Bond A Dist $ 11.44

Haussmann Cls A

(IRL)

6 Duke Street,St.James,London SW1Y 6BN


www.dodgeandcox.worldwide.com 020 3713 7664
FCA Recognised
EUR Accumulating Class

26.83

HPB Assurance Ltd

ENISO Forte CH SMI Expanded SFr 144.33

(JER)
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800
FCA Recognised

Far East

Emerging Mkts NAV

Clairdenstrasse 34, Postfach CH-8022 Zurich


Tel: +41 (0)44 286 17 17
www.eniso-partners.com
Other International Funds

Barclays Investment Funds (CI) Ltd

Arisaig Africa Consumer Fund Limited $ 12.81

Aspect Diversified Trends GBP

Other International Funds

ENISO Partners AG

0.00 0.52

Other International Funds

Aspect Diversified CHF

Genesis Asset Managers LLP

Regulated

DAVIS Funds SICAV

Regulated
$

0.21 0.00

Euronova Asset Management UK LLP

EUR Distributing Class


-1.78

$ 12.6527

The Antares European Fund Limited


$ 606.41

European Real Estate Securities

Global Liquidity USD

SR 11.40

Regulated

795.91

Russia A GBP Inc F


Other International

(LUX)

$ 756.27

0.13 0.00

Offer D+/- Yield

Axiom Equity

Bid

Axiom Equity

1669.64

Fund

3.61

www.creditandorra.com
FCA Recognised

0.04 0.00

Offer D+/- Yield

6.79

Bid

1.30

0.27 0.00

Fund

Offer D+/- Yield

EFG-Hermes MENA Equity UCITS Fund Class A $ 965.64

967.84

Axiom Obligataire

Regulated

Bid

EFG-Hermes Frontier Equity UCITS Fund Class I $ 989.32

Ennismore Smaller Cos Plc


1.19

Fund

-10.82

Axiom Contingent Capital

1658.64

Offer D+/- Yield

Other International Funds

$ 1656.94

Bid

-17.03 0.00

(FRA)

964.26

Fund

1 Conduit Street - 4th floor - London W1S 2XA


www.axiom-ai.com Tel: +44 330 822 0374
Regulated
Axiom Contingent Capital

Offer D+/- Yield

Gbl RealEstate Sec. IX

Axiom Alternative Investments

Bid

Cheyne Total Return Credit Fund 2020 $ 89.96

ALTERNATIVE INVESTMENTS

Axiom Obligataire

Algebris Investments

Fund

Cheyne Total Return Credit Fund - December 2017 Class $ 135.85

Cohen & Steers SICAV

Atlantis China Fund

Axiom Obligataire

AEF Ltd Eur (Est)

Bid

2nd Floor, 13 St Swithin's Lane, London EC4N 8AL


www.atlantis-investmenet.com, Tel: 0207 877 3377

ACPI Emerging Mkts FI UCITS Fund USD A $ 108.24

AEF Ltd Usd (Est)

Fund

4.54

4.89 0.11 0.00

8.98

0.09 0.00

$ 16.40

0.39 0.00

Invesco Euro Corporate Bond Fund (A) 16.77

0.00 0.00

Invesco Euro Inflation Linked Bond A 15.56

0.01 0.00

Invesco Euro Reserve A

322.57

0.00 0.00

Invesco Euro Bond A

0.00 0.00

7.12

Invesco European Growth Equity A 23.53

-0.09 0.00

Invesco Global Absolute Return Fund A Class 11.63

0.07 0.00

Invesco Global Bond A Inc

0.00 0.76

5.44

Kames Capital VCIC

(IRL)

1 North Wall Quay, Dublin 1, Ireland +35 3162 24493


FCA Recognised
1079.08

Absolute Return Bond B GBP Acc

Marlborough International Management Limited (GSY)

0.55 1.26

Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520
FCA Recognised

Eq Market Neutral B Acc

1014.31

-1.66

Marlborough North American Fund Ltd 32.88 35.04 0.42 0.00

Eq Market Neutral Plus B Acc

1016.46

-3.42

Marlborough Tiger Fund Ltd F

High Yield Global Bond A GBP Inc

510.11

2.13 4.25

High Yield Global Bond B GBP Inc

1061.02

4.45 4.75

Investment Grade Global Bd A GBP Inc

550.60

-0.40 2.63

Kames Global Equity Income B GBP Acc

1225.20

-4.59

Kames Global Equity Income B GBP Inc

1160.94

-4.34

Strategic Global Bond A GBP Inc

1075.76

-5.35 0.87

Other International Funds

Strategic Global Bond B GBP Inc

610.65

-2.99 1.37

Global Gold & Resources Fund

25.41 27.08 0.75 0.00

Lloydstrust Gilt

12.4600

-0.0700 2.26

Lloyds Investment Funds Limited

Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
FCA Recognised
Harris Global Equity R/A (USD)

$ 233.24 233.24 1.85 0.00

Harris US Equity Fund R/A (USD) $ 199.22 199.22 1.09 0.00


Harris Concentrated US Equity R/A (USD) $ 150.53 150.53 1.20 0.00
Loomis Sayles Strategic Alpha R/A (USD) $ 108.42 108.42 0.22

Marwyn Asset Management Limited


Marwyn Value Investors

440.64

(CYM)

Regulated
-10.28 0.00

Natixis International Funds (Dublin) I plc (IRL)


Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
Regulated
Loomis Sayles Global Opportunistic Bond R/D (USD) $ 12.49 12.49 0.04 1.24

Meridian Fund Managers Ltd

Loomis Sayles High Income R/D (USD) $

$ 181.40

-2.60

Global Energy & Resources Fund $ 29.80

-1.38

Lloyds Investment Fund Managers Limited (1000)F (JER)


PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
Other International Funds

Natixis International Funds (Lux) I SICAV (LUX)

Mirabaud Asset Management

(LUX)

www.mirabaud.com, marketing@mirabaud.com
Regulated
Mir. Conv. Bds Eur A EUR

131.43

Euro High Income

1.6110

0.0000 2.91

0.25 0.00

Mir. Conv. Bds Glb A USD

$ 109.85

0.38 0.00

European

7.5900

0.0130 1.21

Mir. - Eq Asia ex Jap A

$ 165.66

-0.18 0.00

7.45

7.45 0.06 12.80

Loomis Sayles Multisector Income R/D (GBP) $ 11.55 11.55 0.07 5.94

Tuesday 8 March 2016

25

FINANCIAL TIMES

MANAGED FUNDS SERVICE


Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Odey Absolute Return Focus Fund $ 97.19

5.73

119.90

0.75 0.00

Unconstrained Bond - Inst Acc

$ 11.66

0.04 0.00

250.22

0.49 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR I 102.89

0.00 0.00

US High Yield Bond Fund Inst Acc $ 27.41

0.16 0.00

Odey Allegra International EUR O 162.64

-0.21 0.00

Pictet-Euroland Index IS EUR

123.26

1.02 0.00

Odey Allegra Developed Markets USD I $ 125.97

0.71 0.00

Pictet-Europe Index-I EUR F

159.57

1.13 0.00

Odey European Focus Fund

0.17 0.52

Pictet-European Equity Selection-I EUR F 602.12

6.55 0.00

Odey Allegra European EUR O

Fund
Pictet-EUR Short Term HY I EUR

Fund

Bid

Offer D+/- Yield

Fund

(IRL)

Offer D+/- Yield

158.00

0.53 3.55

Renminbi Bond Fund SGD Cls A S$ 156.50

0.54 3.48

Renminbi Bond Fund YEN Cls A

19877.00

65.00 0.00

Renminbi Bond Fund EUR Cls A

107.04

0.36 3.49

Renminbi Bond Fund GBP Cls A

S W Mitchell Capital LLP

Bid

Regulated

New Capital Fund Management Ltd

(IRL)

Leconfield House, Curzon Street, London, W1J 5JB


FCA Recognised
New Capital UCITS Funds
Asia Pac Bd USD Inst Inc

$ 91.91

0.46 3.42

Asia Pac Bd USD Ord Inc

$ 93.84

0.46 2.69

Asia Pac Eq EUR Ord Inc

82.16

0.96 3.47

Asia Pac Eq GBP Ord Inc

85.05

1.01 4.07

Asia Pac Eq USD Ord Inc

$ 86.01

1.03 3.47

Asia Pac Eq USD Inst Acc

$ 92.66

1.10 0.00

Asia Pac Eq USD Inst Inc

$ 95.93

1.14 4.21

Dyn Europ Eq EUR Ord Inc


Dyn Europ Eq GBP Ord Inc

167.31
177.28

0.76 0.72
0.85 1.09

Dyn Europ Eq USD Ord Inc

$ 166.83

0.76 0.72

China Equity EUR Ord Acc

118.90

2.07 0.00

China Equity GBP Ord Acc

123.67

2.17 0.00

China Equity USD Ord Acc


China Equity USD Inst Acc

$ 121.04
$ 124.66

99.80

0.46

98.22

0.46

Europ. Equity Fd USD

$ 98.52

0.46

0.34 3.71

1.00 0.00

0.30 0.00

Odey Naver Fund EUR I

117.89

0.00 0.00

Pictet-Global Bonds-I EUR

-1.12 0.00

Odey Odyssey USD I

$ 131.26

-0.36 0.00

Pictet-Global Emerging Currencies-I USD F $ 96.72

0.87 0.00

Platinum All Star Fund - A

$ 114.99

Odey Orion Fund EUR I

114.80

-0.01 0.00

Pictet-Global Emerging Debt-I USD F $ 361.03

-0.77 0.00

Platinum Global Dividend Fund - A $ 50.96

Odey Swan Fund EUR I

77.32

-3.39 0.00

Pictet-Global Megatrend Selection-I USD F $ 211.83

1.07 0.00

Platinum Maverick Enhanced Fund Limited $ 84.55

0.00

Odey European Absolute Return GBP S 92.97

0.12 0.00

Pictet-Greater China-I USD F

$ 417.04

-0.82 0.00

RobecoSAM

Pictet-Health-I USD

$ 250.02

0.16 0.00

Tel. +41 44 653 10 10 http://www.robecosam.com/


Regulated

Pictet-High Dividend Sel I EUR F 152.46

-0.38 0.00

RobecoSAM Sm.Energy/A

11.63

0.03 1.66

Pictet-India Index I USD

$ 89.98

0.29 0.00

RobecoSAM Sm.Energy/N

11.39

0.00 0.00

Pictet-Indian Equities-I USD F

$ 405.51

1.20 0.00

RobecoSAM Sm.Materials/A

124.50

1.06 1.45

Pictet-Japan Index-I JPY F

14362.89

-153.39 0.00

RobecoSAM Sm.Materials/N

138.72

0.82 0.00

Pictet-Japanese Equities Opp-I JPY F 8479.35

-86.43 0.00

RobecoSAM Sm.Materials/Na

95.74

0.56

Pictet-Japanese Equity Selection-I JPY F 12503.09

-119.74 0.00

RobecoSAM Gl.Small Cap Eq/A

78.38

0.08 1.31

RobecoSAM Gl.Small Cap Eq/N

151.24

-0.24 0.00

RobecoSAM Sustainable Gl.Eq/B 171.47

-0.18 0.00

RobecoSAM Sustainable Gl.Eq/N 148.21

-0.15 0.00

RobecoSAM S.HealthyLiv/B

172.45

-0.56 0.00

RobecoSAM S.HealthyLiv/N

160.96

-0.52 0.00

RobecoSAM S.HealthyLiv/Na

108.71

-0.06

RobecoSAM S.Water/A

173.79

0.14 1.20

RobecoSAM S.Water/N

161.80

-0.31 0.00

Odey Wealth Management (CI) Ltd

(IRL)

www.odey.com/prices
FCA Recognised
Odey Opportunity EUR I

212.68

-0.11 0.00

Omnia Fund Ltd


Other International Funds
Estimated NAV

$ 809.53

-3.50 0.00

Pictet-LATAM Index I USD

Optima Fund Management


Other International Funds

Global Val.Cr.Fd USD Ord Acc

$ 164.45

0.52 0.00

Global Val.Cr.Fd EUR Ord Acc

152.76

0.51 0.00

Optima Fd NAV

$ 81.66

0.40 0.00

Swiss Select Equity Inst Acc

SFr 114.59

0.91 0.00

Optima Discretionary Macro Fund Limited $ 87.21

-1.06 0.00

Swiss Select Equity Ord Acc

SFr 113.13

0.90 0.00

The Dorset Energy Fd Ltd NAV

0.03 0.00

Cuttyhunk Fund II Limited

$ 1281.45

JENOP Global Healthcare Fund Ltd $ 12.64


OPTIKA Fund Limited - Cl A

$ 86.25

$ 19.91

9.86 0.00

-0.31 0.00

-1.23

US Growth USD Ord Acc

$ 190.87

-0.02 0.00

Platinum Fd Ltd

$ 77.68

2.37 0.00

US Growth EUR Ord Acc

182.37

-0.01 0.00

Platinum Fd Ltd EUR

15.04

0.44 0.00

US Growth GBP Ord Acc

191.54

-0.03 0.00

Platinum Japan Fd Ltd

$ 49.11

2.91 0.00

US Growth USD Inst Acc

$ 176.60

-0.02 0.00

Optima Partners Global Fd

$ 13.02

0.09 0.00

Wealthy Nat Bd EUR Inst Inc

107.69

0.20 3.74

Optima Partners Focus Fund A

$ 14.42

0.01 0.00

Wealthy Nat Bd GBP Ord Inc

112.67

0.21 3.42

Wealthy Nat Bd USD Ord Inc

$ 109.93

0.21 3.40

Oryx International Growth Fund Ltd


Other International Funds
NAV (Fully Diluted)

6.93

-0.28 0.00

New Capital Alternative Strategies


All Weather Fd USD Cls

$ 115.95

-1.88 0.00

All Weather Fd EUR Cls

103.87

-1.80 0.00

All Weather Fd GBP Cls

111.94

-1.97 0.00

Tactical Opps USD Cls

$ 120.45

4.69 0.00

Tactical Opps EUR Cls

101.07

4.05 0.00

Tactical Opps GBP Cls

113.18

4.66 0.00

OTP Asset Management Romania SAI SA ((ROM))


www.otpfonduri.ro
Other International Funds
OTP Comodisro

RON 16.91

0.00

OTP Obligatiuni

RON 14.33

0.00

OTP Avantisro
OTP Euro Bond
OTP Dollar Bond
OTP Premium Return

RON

8.08

-0.02

12.44

0.00

$ 10.63
RON 1068.44

0.00

0.35

169.56

$ 52.71

2.02 0.00

Pictet-LATAM Lc Ccy Dbt-I USD F $ 110.16

2.20 0.00

Pictet-Pacific Ex Japan Index-I USD F $ 324.24

3.40 0.00

145.00

0.17 0.00

Pictet-Quality Global Equities I USD $ 134.04

0.81 0.00

Pictet-Russia Index I USD

$ 49.14

1.27 0.00

Pictet-Russian Equities-I USD F

$ 43.38

1.37 0.00

Pictet-Security-I USD F

$ 191.78

0.96 0.00

Pictet-Select-Callisto I EUR

103.26

0.16 0.00

Pictet-Small Cap Europe-I EUR F 1067.01

8.72 0.00

140.42

0.00 0.00

Pictet-Premium Brands-I EUR F

0.55 0.00

0.19 3.48

Pictet-ST.MoneyMkt-I
Pictet-ST.MoneyMkt JPY I USD

101507.40

-2.07 0.00

Pictet-ST.MoneyMkt-ICHF

SFr 124.02

-0.01 0.00

Pictet-ST.MoneyMkt-IUSD

$ 135.46

0.00 0.00

Pictet-Timber-I USD F

$ 137.55

1.85 0.00

Pictet Total Ret-Agora I EUR

116.23

0.07 0.00

Pictet Total Ret-Corto Europe I EUR 132.36

0.13 0.00

Pictet Total Ret-Divers Alpha I EUR 104.50

-0.07 0.00

Pictet Total Ret-Kosmos I EUR

107.92

0.05 0.00

Pictet Total Ret-Mandarin I USD $ 111.88

-0.56 0.00

Pictet-US Equity Selection-I USD $ 179.90

0.47 0.00

Pictet-US High Yield-I USD F

$ 143.76

0.41 0.00

Pictet-USA Index-I USD F

$ 177.23

0.57 0.00

Pictet-USD Government Bonds-I F $ 648.05

-2.08 0.00

-333.73 0.00

62.40 0.00

Fixed Income Holdings N.V.

$ 338.80

-10.52

Permal Absolute Return Fund

$ 157.29

-5.90 0.00

Oasis Crescent Management Company Ltd


Other International Funds
Oasis Crescent Equity Fund

9.95

-0.02 0.00

(IRL)

Regulated

Pictet Asset Management (Europe) SA

Oasis Global Investment (Ireland) Plc


Oasis Crescent Global Short Term Income Fund $
Oasis Global Equity

0.99

0.01 0.94

$ 26.51

0.14 0.24

Oasis Crescent Global Investment Fund (Ireland) plc


Oasis Crescent Global Equity Fund $ 27.15
Oasis Crescent Variable Balanced Fund 10.42
OasisCresGl Income Class A
OasisCresGl LowBal D ($) Dist

$ 10.75
$ 11.49

0.12 0.00
0.02 0.97
0.02 2.46
0.05 0.00

OasisCresGl Med Eq Bal A ($) Dist $ 11.68

0.06 0.51

Oasis Crescent Gbl Property Eqty $

0.04 2.43

9.14

Pictet-Absl Rtn Fix Inc-HI EUR

122.97

-0.13 0.00

184.25

-0.80 0.00

Pictet-Asian Equities Ex Japan-I USD F $ 194.78

OEI Mac Inc GBP A

346.10

-51.28 0.00

OEI Mac Inc GBP B

206.46

-21.48 0.00

OEI MAC Inc USD

$ 1852.01

-269.17 0.00

Odey European Inc EUR

800.67

-116.93 0.00

Odey European Inc GBP A

309.03

-45.03 0.00

Odey European Inc GBP B

175.38

-25.57 0.00

Odey European Inc USD


Giano Capital EUR Inc

$ 371.76
4520.92

-52.98 0.00
0.00 0.00

(IRL)

FCA Recognised
Odey Pan European EUR R

-0.98 0.00

$ 647.90

-1.42 0.00

Pictet-Brazil Index I USD

$ 41.05

2.79 0.00

0.45 0.00

SFr 511.03

-1.79 0.00

$ 94.87

1.50 0.00

$ 74.19

0.35 0.00

Pictet-Digital Communication-I USD F $ 247.83

0.15 0.00

Pictet-Eastern Europe-I EUR F

2.86 0.00

Pictet-Em Lcl Ccy Dbt-I USD F

264.20
$ 158.02

1.98 0.00

Pictet-Emerging Markets-I USD F $ 455.22

4.23 0.00

Pictet-Emerging Markets Index-I USD F $ 205.75

2.81 0.00

Pictet-Emerging Corporate Bonds I USD $ 107.08

0.35 0.00

Pictet-Emerging Markets High Dividend I USD $ 91.37

0.95 0.00

Pictet-Emerging Markets Sust Eq I USD $ 82.36

0.34 0.00

Pictet-Environmental Megatrend Sel I EUR 154.69

-0.30 0.00

Pictet-EUR Bonds-I F

563.63

-2.12 0.00

Pictet-EUR Corporate Bonds Ex Fin i EUR 144.58

-0.14 0.00

201.42

Pictet-EUR Government Bonds I EUR 161.11


Pictet-EUR High Yield-I F

309.83

0.24 0.00

Pictet-Asian Local Currency Debt-I USD F $ 154.42

Pictet-EUR Corporate Bonds-I F

Odey Asset Management LLP

Pictet-Biotech-I USD F

Pictet-Clean Energy-I USD F

(CYM)

-0.25 0.00

0.34 0.00
-0.49 0.00

237.17

0.82 0.00

Pictet-EUR Short Mid-Term Bonds-I F 137.14

-0.04 0.00

0.09 2.17

8.15

0.11 0.00

GEM Income I USD

9.06

0.10 0.00

Emerging Local Bond - Inst Acc

5.68

0.02 0.00

0.11 0.00

9.74

0.09 0.00

$ 10.94

0.13 0.00

Emerging Markets Bond - Inst Acc $ 38.01

0.16 0.00

Emerging Markets Corp.Bd Fund Inst Acc F $ 12.64

0.06 0.00

143.70

2.03 0.00

170.95

-2.05 0.00

Other International Funds

18.24 0.00

$ 1285.97 1302.04 -3.65 0.00

Private Fund Mgrs (Guernsey) Ltd

(GSY)

Regulated
477.51 482.53 11.29 1.30

Prusik Investment Management LLP

(IRL)

Enquiries - 0207 493 1331


Regulated
Prusik Asian Equity Income B Dist $ 152.23

-0.12 4.42

Prusik Asia A

$ 182.56

0.37 0.00

Prusik Asian Smaller Cos A

$ 131.69

-0.22 0.00

Purisima Investment Fds (CI) Ltd

0.02 0.00

Putnam Investments (Ireland) Ltd

Euro Long Average Duration - Inst Acc 22.82

-0.09 0.00

Putnam New Flag Euro High Yield Plc - E 972.77

Global Bond Ex-US - Inst Acc

$ 28.17
$ 19.90

0.00 0.00

Global High Yield Bond - Inst Acc $ 19.89

0.10 0.00

Global Investment Grade Credit - Inst Income $ 12.11

0.00 3.81

Global Investment Grade Credit Fund Inst Acc 11.72

-0.06 0.00

Global Investment Grade Credit Fund Inst Acc $ $ 16.72

-0.01 0.00

Global Multi-Asset - Inst Acc

$ 13.76

0.06 0.00

Global Real Return - Inst Acc

$ 18.07

-0.02 0.00

Income Fund Inst Acc

$ 12.32

0.02 0.00

Inflation Strategy Fund Inst Acc

8.73

0.06 0.00

Low Average Duration - Inst Acc $ 14.77

0.00 0.00

968.00 0.00

1136.00 0.00

(IRL)

Regulated
-

2.92 4.21

Robeco Asset Management

(LUX)

Coolsingel 120, 3011 AG Rotterdam, The Netherlands.


www.robeco.com/contact
FCA Recognised

5.69 0.00
2.02 0.00

LTIF Stability A ACCU

158.55

2.39 0.00

LTIF Stability Growth

SFr 182.70

3.10

LTIF Stability Inc Plus

SFr 156.80

2.60 0.58

0.17 0.00

Chinese Equities (EUR)

66.69

0.60 0.00

Em Stars Equities (EUR)

161.61

0.50 0.00

Emerging Markets Equities (EUR) 136.06

0.83 0.00

Flex-o-Rente (EUR)

-0.22 0.00

111.45

Glob.Consumer Trends Equities (EUR) 146.51

0.28 0.00

High Yield Bonds (EUR)

124.87

1.69 0.00

Lux -O- Rente (EUR)

147.32

-0.52 0.00

New World Financials (EUR)

47.54

0.17 0.00

US Premium Equities (EUR)

172.59

0.43 0.00

-0.31 4.50
0.06 4.41

Strategic US Momentum & Value Fund USD I Class $ 475.61

1.01 0.00

Veritas Global Equity Income Fund D GBP 153.58

-0.50 4.13

Strategic US Momentum and Value EUR Hedged Class EUR 498.60

1.02 0.00

Veritas Global Focus Fund D USD $ 25.37

-0.08 0.68

Strategic US Momentum and Value CHF Hedged Class CHFSFr 495.59

1.03 0.00

Veritas Global Focus Fund D EUR 23.33

0.00 0.67

Veritas Global Focus Fund D GBP 30.42

-0.10 0.61

Veritas Global Focus Fund A GBP 29.36

-0.10 0.35

Veritas Global Focus Fund A EUR 13.59

0.00 0.38

Veritas Global Focus Fund A USD $ 24.47

-0.07 0.39

Veritas Global Focus Fund C GBP 31.89

-0.11 0.00

Veritas Global Focus Fund C EUR 24.57

0.00 0.00

Veritas Global Focus Fund C USD $ 26.65

-0.08 0.00

Veritas Global Equity Income Fund A GBP 147.10

-0.48 4.14

Veritas Global Equity Income Fund A EUR 192.28

0.06 4.42

Veritas Global Equity Income Fund A USD $ 107.63

-0.30 4.51

Veritas Global Equity Income Fund C GBP 176.89

-0.58

Veritas Global Equity Income Fund C EUR 231.10

0.07

Veritas Global Equity Income Fund C USD $ 128.60

-0.36

(IRL)

Regulated
Gbl Govt Bond (Ex Japan) Index (GBP) 1721.55

-5.65 0.00

UK Corporate Bond

1567.56

0.70 0.00

Gilt

1634.01

-3.98 0.00

Global Eq (Ex Japan) Index Fund

0.01 0.00

1.33

Global Eq (ex Japan) Class HJ4

1.39

0.01 0.00

Global Eq (ex Japan) Class JP5

1.41

0.01 0.00

Global Eq Ex Japan Index Fund (Hedge)

1.29

0.01 0.00

1.28

0.01 0.00

Gbl Govt Bond (ex Japan) Class JP4

1.25

0.00 0.00

Standard Life Offshore Strategy Fund Limited

Japan Equity Index Fund

Bridge Fund

(JER)

Gbl Govt Bond (Ex Japan) Index

0.94

-0.01 0.00

Veritas Global Real Return Fund A USD $ 21.76

-0.05 0.28

-0.0042 0.98

Veritas Global Real Return Fund A GBP 12.21

-0.03 0.30

Global Balanced Fund - Income Units 1.3422

-0.0069 2.02

Veritas Global Real Return Fund A EUR 12.83

-0.04 0.11

OEIC: Open-Ended Investment Company. Similar to a


unit trust but using a company rather than a trust
structure.

Global Balanced Fund - Accumulations Units 1.5704

-0.0081 1.99

Global Fixed Interest Fund

0.9759

0.0027 5.28

Different share classes are issued to reflect a different


currency, charging structure or type of holder.

TNI Funds Ltd (BMU)

Sterling Fixed Interest Fund

0.8305

0.0002 4.19

MENA Hedge Fund

UK Equity Fund

1.8462

-0.0198 2.81

TNI Funds Plc (Ireland)

The National Investor (TNI)


www.tni.ae
Other International Funds
TNI Blue Chip UAE Fund *

MENA UCITS Fund *

AED 10.19

0.25 0.00

$ 921.85

35.27 0.00

$ 1041.77

4.86 0.00

Stenham Asset Management Inc


www.stenhamassetmanagement.com

Toscafund Asset Management LLP

Stenham Asia USD

$ 121.63

-6.37

Stenham Credit Opportunities A Class USD $ 97.60

-1.87 0.00

Stenham Equity UCITS USD

$ 130.76

3.52 0.00

Stenham Growth USD

$ 203.58

-10.78

Stenham Healthcare USD

$ 162.01

-22.06 0.00

Stenham Managed Fund USD

$ 108.71

-4.83

Stenham Macro UCITS USD

$ 97.70

0.13 0.00

Stenham Multi Strategy USD

$ 112.17

-3.37

$ 399.43

0.83

www.toscafund.com
Authorised Funds
Aptus Global Financials B Acc

2.91

0.02 4.89

Aptus Global Financials B Inc

2.54

0.01 5.05

Toscafund Asset Management LLP


Other International Funds

$ 115.64

0.21

$ 418.24

-11.89

Stenham Universal II USD

$ 154.82

-4.46 0.00

$ 274.11

Tosca Mid Cap GBP

246.54

0.91 0.00

Tosca Opportunity B USD

$ 335.74

1.47 0.00

Pegasus Fund Ltd A-1 GBP

57.90

2.13 0.00

-30.93

2.42 0.00

Japan Synthetic Warrant GBP Hedged Class 157.70

0.00 0.00

Japan Synthetic Warrant USD Class $ 13.50

0.01 0.00

TreeTop Asset Management S.A.

(LUX)

Regulated

Japan Synthetic Warrant USD Hedged Class $ 158.91

0.00 0.00

Renminbi Bond Fund AUD Cls A A$ 118.62

0.40 3.47

International A

276.42

-0.61 0.00

Renminbi Bond Fund AUD Cls B A$ 120.57

0.41 3.24

TreeTop Convertible Sicav

0.37 3.30

International D

256.66

-0.58 3.41

TreeTop Global Sicav


Global Opp.A

133.46

0.98 0.00

Global Opp.B

$ 132.82

1.31 0.00

Global Opp.C

178.81

1.06 0.00

Sequoia Equity A

130.07

0.12 0.00

Sequoia Equity B

$ 133.41

0.60 0.00

Sequoia Equity C

160.88

0.07 0.00

Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.65

0.04 0.00

Renminbi Bond Fund CNH Cls A CNH 126.10

0.21 3.39

StocksPLUS{TM} - Inst Acc

0.07 0.00

Renminbi Bond Fund CNH Cls B CNH 125.99

0.21 3.14

UK Low Duration - Inst Acc


UK Real Return - Inst Acc

14.01
22.94

UK Sterling Long Average Duration - Inst Acc 22.64

0.00 0.00
-0.04 0.00
-0.12 0.00

116.56
118.72

Renminbi Bond Fund SGD Cls B S$ 118.32


-

-9.46

S W Mitchell Small Cap European Fund Class A EUR 231.38

0.21

The Charlemagne Fund EUR

-12.01

315.89

Renminbi Bond Fund USD Cls B

288.69

-1.52 0.00

Veritas Asian Fund B EUR

228.59

-0.39 0.00

Veritas China Fund B GBP

126.50

0.31 0.00

Veritas China Fund B EUR

163.91

1.09 0.00

Veritas Global Focus Fund B USD $ 17.66

-0.05 0.00

Veritas Global Focus Fund B GBP 22.41

-0.08 0.00

Veritas Global Focus Fund B EUR 16.18

0.00 0.00

Veritas Global Equity Income Fund B GBP 135.14

-0.45 4.16

Veritas Global Equity Income Fund B EUR 176.21

0.05 4.44

Veritas Global Equity Income Fund B USD $ 106.56

-0.30 4.53

Veritas Global Real Return Fund B USD $ 21.08

-0.06 0.00

Veritas Global Real Return Fund B GBP 11.97

-0.03 0.00

Veritas Global Real Return Fund B EUR 13.70

-0.04 0.00

www.veritas-asset.com
Other International Funds
Real Return Asian Fund USD (Est) 277.60

Real Return Asian Fund GBP (Est) 296.77

-7.03 0.00

Real Return Asian Fund EUR (Est) $ 292.91

-10.89 0.00

$ 16.65

$ 118.45

0.39 3.23
0.40 3.29
0.40 3.22
0.41 3.07

Renminbi Bond Fund YEN Cls B

13431.64

44.52 0.00

Renminbi Bond Fund USD Cls A

$ 163.08

0.56 3.33

-26.20 0.00

(IRL)

0.12 5.74

8.37

0.01 5.68

Waverton Global Equity Fund A GBP 13.99

0.02 0.58

Waverton UK Fund A GBP

12.93

0.05 1.96

Waverton Equity Fund A GBP

14.29

0.00 0.20

0.01 5.51

Waverton Sterling Bond Fund A GBP

Renminbi Bond Fund CHF Cls B SFr 114.53

S W Mitchell European Fund Class A EUR 328.95

Veritas Asian Fund B GBP

Waverton Asia Pacific A USD

0.07 0.00

-0.01 0.00

-1.00 0.00

Waverton Global Bond Fund Cls A $

waverton.investments@citi.com
FCA Recognised

(GSY)

Japan Synthetic Warrant Yen Class 1173.48

Renminbi Bond Fund GBP Cls B

$ 208.36

Waverton Investment Funds Plc (1600)F

Regulated

Renminbi Bond Fund Euro Cls B

Veritas Asian Fund B USD

Veritas Asset Management LLP

Tosca A USD

Stenham Universal USD

Retail

www.toscafund.com

Stenham Trading Inc USD

Stratton Street Capital (CI) Limited

(UK)

PIMCO RAE Fundam.PLUS US Inst Acc $ 11.89

UK Long Term Corp. Bnd Inst-Inst Acc 19.03

Guide to pricing of Authorised Investment Funds:


(compiled with the assistance of the IMA. The
Investment Management Association, 65 Kingsway,
London WC2B 6TD.
Tel: +44 (0)20 7831 0898.)

0.0006 3.21

-0.20 0.00

(CYM)

Prices are in pence unless otherwise indicated. The


change, if shown, is the change on the previously
quoted figure (not all funds update prices daily). Those
designated $ with no prefix refer to US dollars. Yield
percentage figures (in Tuesday to Saturday papers)
allow for buying expenses. Prices of certain older
insurance linked plans might be subject to capital
gains tax on sales.

-0.53 0.00

S W Mitchell Capital LLP

The fund prices published in this edition along with


additional information are also available on the
Financial Times website, www.ft.com/funds. The
funds published on these pages are grouped together
by fund management company.

-0.01 0.00

Regulated

The sale of interests in the funds listed on these pages


may, in certain jurisdictions, be restricted by law and
the funds will not necessarily be available to persons
in all jurisdictions in which the publication circulates.
Persons in any doubt should take appropriate
professional advice. Data collated by Morningstar. For
other queries contact reader.enquiries@ft.com +44
(0)207 873 4211.

1.1657

0.01 0.00

The fund prices quoted on these pages are supplied by


the operator of the relevant fund. Details of funds
published on these pages, including prices, are for the
purpose of information only and should only be used
as a guide. The Financial Times Limited makes no
representation as to their accuracy or completeness
and they should not be relied upon when making an
investment decision.

1.8780

1.14

120.26

Guide to Data

Global Equity Fund

$ 355.64

17.16

Data as shown is for information purposes only. No


offer is made by Morningstar or this publication.

Diversified Assets Fund

Japan Equity Class JP3

International C

UK Corporate Bond - Inst Acc

www.morningstar.co.uk

-0.0077 1.87

International B

-0.02 0.00

Data Provided by

0.38 3.57

0.50 0.00

(CYM)

Regulated

1.5969

Institutional

The Hartford International Funds

Zebedee Capital Partners LLP

Asset Management

(IRL)
Veritas Asset Management LLP
HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
Veritas Funds Plc
www.veritas-asset.com
+353 1 635 6799
FCA Recognised

Renminbi Bond Fund CHF Cls A SFr 114.58

Veritas Global Equity Income Fund D EUR 198.03

0.10 0.00

$ 27.24

0.02

Veritas Global Equity Income Fund D USD $ 111.91

0.22 0.00

Total Return Bond - Inst Acc

1.50 0.00

$ 22.45

8.55

0.35 0.00

$ 192.94

Value Partners Health Care Fund USD Class A Unhedged $

8.23

US Premium Equities (USD)

0.01

PIMCO RAE Fundam.PLUS Gl.Dev.Inst Acc $ 10.33

PIMCO RAE Fundam.PLUS Em.Mkts Inst Acc $

-0.02

$ 1056.36

PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130


FCA Recognised

Standard Life Wealth

Stenham Quadrant USD A

126.16

Asia-Pacific Equities (EUR)

8.54

Strategic US Momentum and Value Fund $ 715.09

(JER)

0.05 0.00

0.00 0.00

Other International Funds

Global Bond - Inst Acc

Nippon Growth (UCITS Fund Class D Institutional JPY) 47487.00

Regulated

12.83

0.03 0.00

325.60
75.92

Other International Fds

-0.02 0.00

Nippon Growth (UCITS) Fund JPY Class C Dis shares 82212.00

(LUX)

SIA (SIA Funds AG) (CH)


Polunin Capital Partners Ltd

8.40

1752.00 0.00

Regulated

14.82

Global Advantage Real Return Fund Inst Acc $

9.00

Value Partners Health Care Fund HKD Class A UnhedgedHK$

Strategic Global Bond USD Acc

Euro Credit - Inst Acc

2089.00 0.00

Value Partners Health Care Fund RMB Class Z UnhedgedCNH

1.68 0.00 0.00

-1.96 0.00

$ 12.12

Nippon Growth (UCITS) Fund JPY Class B Acc shares 73231.00

0.31 0.41

Global Advantage - Inst Acc

Nippon Growth (UCITS) Fund JPY Class A shares 87333.00

0.12

0.33 0.41

149.92

-0.15 0.00

26.15 0.00

PCG C

7.85

-0.02 0.00

Euro Ultra Long Duration - Inst Acc 31.27

Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) 1108.28

Value Partners Greater China Equity Fund $

124.53

0.00 0.00

22.21 0.00

130.58

22.82

Veritas China Fund A EUR

Euro Bond - Inst Acc

12.24

1.49 0.00

Nippon Growth (UCITS Fund Euro Hedged Class EUR) 941.40

Veritas China Fund A GBP

-1.99 0.00

0.02 0.00

4.72 0.00

2.19 0.00

Zebedee Focus Fund Limited Class A USD $ 200.56

Value Partners Classic Equity USD Hedged $ 12.24

8.72

152.09

13.43

0.01 0.00

Regulated

PCG B

Euro Real Return - Inst Acc

1.47 0.00

LTIF Classic

1.53 0.00

$ 1074.18

LTIF Natural Resources

Zebedee Focus Fund Limited Class B USD Shares $ 238.66

Strategic European Smaller Companies Fund EUR Class 919.98

SIA (SIA Funds AG)

112.76

Zebedee Focus Fund Limited Class A EURO Shares 170.52

Strategic Global Bond RMB Acc

133.59 140.40 -0.25 2.36

Memnon European Fund I GBP

0.05 0.00

0.00 0.00

Other International Funds

(LUX)

FCA Recognised

(IRL)

Schroder Property Managers (Jersey) Ltd

Zadig Gestion (Memnon Fund)

Value Partners Classic Equity Fund GBP Unhedged 11.88

E.I. Sturdza Funds PLC

Asset Management

0.01 0.00

0.31 0.39

European Forager A EUR

-6.34

0.01 0.00

9.95 -0.01 0.00

European Conviction A EUR

-156.00 0.00

-0.52 0.23

-1.10 0.00

Yuki Japan Rebounding Growth Fund USD Hedged Class $ 834.20

Yuki Japan Rebounding Growth Fund JPY Class 21288.00

Value Partners Classic Equity Fund GBP Hedged 10.76

$ 126.14

(CYM)

-4.00 0.00

Value Partners Classic Equity Fund EUR Hedged 10.51

Veritas China Fund A USD

Polar Capital LLP

-5.42 0.00

0.86 1.33

Regulated

16439.00

YMR N Growth
Yuki Asia Umbrella Fund

-673.00 0.00

12.38 12.38 0.02 0.00

-38.00 0.00

Strategic Euro Bond Fund Distributing Class Shares 1024.35

UK Absolute Equity I GBP

-2.05 0.24

Indirect Real Estate SIRE

11299.00

YMR Umbrella Fund

71409.00

$ 16.97 16.97 0.02 0.00

Yuki Japan Value Select

$ 703.07

North American I USD

53.00 0.00

Strat Evarich Japan Fd Ltd USD

310.58

-11.96 1.25

-0.38 0.00

Strat Evarich Japan Fd Ltd JPY

391.98

0.01 0.00

Veritas Asian Fund A EUR H

1750.38

777.62
23529.00

Veritas Asian Fund A GBP H

Japan I JPY

Yuki Mizuho Japan Large Cap


Yuki Japan Low Price

Value Partners Classic Equity Fund CHF HedgedSFr 10.39

0.95 0.00

177.11 177.11 -1.72 0.00

Offer D+/- Yield

3876.00 0.00

0.85 0.00

Japan Alpha I JPY

Bid

0.05 0.00

Fund

86533.00

Monument Growth 01/03/2016

Strategic Euro Bond Fund Accumulating Class Shares 1134.77

$ 21.52

Polunin Small Cap

0.01 0.00

Strategic Euro Bond Institutional Class EUR 1012.77

0.11 0.00

-0.01 0.00

0.11

-1.43 0.46

(LUX)

9.96

Emerging Markets Short-Term Local Currency Fund $ 11.77

Euro Low Duration Fund Inst Acc 11.25

Nippon Growth Fund Limited

8.34

Value Partners Classic Equity Fund USD Z Unhedged $

$ 299.30

$ 721.75 727.88 11.80 0.00

$ 14.32

Regulated

Value Partners Asia ex-Japan Equity Fund $

Veritas Asian Fund A USD H

Polunin Developing Countries

PIMCO Europe Ltd,11 Baker Street,London W1U 3AH


http://gisnav.pimco-funds.com/
Dealing: +44 20 3640 1000
PIMCO Funds: +44 (0)20 3640 1407
FCA Recognised

E.I. Sturdza Strategic Management Limited (GSY)

0.83 0.00

-0.49 0.00

(IRL)

(IRL)

Pimco Fds: Global Investors Series Plc

Strategic Euro Bond Accumulating Class CHFSFr 983.06

Global Technology I USD

Polunin Discovery - Frontier Markets $ 1341.27

Investments IV - Global Private Eq. 366.42 384.74 -49.81

-6.60 0.00

-0.01 0.00

$ 126.92

Investments IV - European Private Eq. 247.75 260.13 -44.58

-6.60 0.00

ALVA Convertible A USD

4.27

1.68

-22.38

Strategic China Panda Fund Hedged Sterling 1925.09

Income Opportunities B2 I GBP Acc

-6.41 0.00

$ 10.98 10.98 0.03 0.00

$ 33.79

5.03

Global Insurance I GBP

Healthcare Opps I USD

Global Convertible I USD

9.95

Investments III

Strategic China Panda Fund USD $ 1950.49

$ 12.17 12.17 0.06 0.00

Healthcare Blue Chip Fund I USD Acc $

(LUX)

Strategic China Panda Fund Hedged EURO 1898.24

275.20

Euro Short-Term Inst Acc


-

Pictet-Agriculture-I EUR F

Pictet-China Index I USD

Regulated

105.79

Pictet-Absl Rtn Glo Div-I EUR F

Pictet-CHF Bonds I CHF

Odey Asset Management LLP

(LUX)

15, Avenue J.F. Kennedy L-1855 Luxembourg


Tel: 0041 58 323 3000
FCA Recognised

$ 10.97

GEM Growth I USD

Pictet-Water-I EUR F

Euro Income Bond - Inst Acc F

Oasis Global Mgmt Co (Ireland) Ltd

Financial Opps I USD

2.01 0.00

Emerging Asia Bond Fund Inst Acc $

$ 5083.27

0.06 0.00

$ 4239.18

9.40 0.06

$ 871.59

Macro Holdings Ltd

Luxcellence Em Mkts Tech

Diversified Income Durat Hdg Fund Inst Acc $ 11.01

Investment Holdings N.V.

European Ex UK Inc EUR Acc

0.00 0.00

0.05 0.00

Offshore Fund Class A US $ Shares

10.92 10.92 0.07 0.00

www.permal.com
Other International Funds

European Income Acc EUR

$ 102.74

$ 19.28

-444.40 0.00

$ 14.93 14.93 -0.07 0.00

Pictet-USD Sov.ST.Mon.Mkt-I

Diversified Income - Inst Acc

Biotechnology I USD

-1.17

0.04 0.00

$ 1969.35

$ 266.55 266.55 0.74 1.31

Northwest Warrant $ class

Asian Financials I USD

$ 39.58

Credit Absolute Return Fund Inst Acc $ 10.80

Permal Investment Mgmt Svcs Ltd

Regulated

Emerging Markets Active

11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Other International Funds
-23.09 0.00

(IRL)

-0.06 0.00

Commodity Real Return Fund Inst Acc $

Polar Capital Funds Plc

Global Alpha I USD

Unicapital Investments

www.valuepartners.net, fis@vp.com.hk
Regulated

Other International Funds

Northwest Investment Management (HK) Ltd

$ 2306.27

Platinum Capital Management Ltd

9.40

Offer D+/- Yield

Value Partners Hong Kong Limited

Pictet-USD Short Mid-Term Bonds-I F $ 130.12

Capital Securities Inst Acc

Northwest $ class

28.85 0.00

0.39 0.00

0.20 3.70

234.01

Pictet-Global Bds Fundamental I USD $ 119.88

SWMC Emerging European Fund B EUR 8731.24

Pictet-European Sust Eq-I EUR F

66.59 0.00

-0.43 0.00

175.14

106.98

-10.13 0.00

-0.01 0.00

$ 121.66

112.04

Global Val.Cr.Fd GBP Ord Acc

Wealthy Nat Bd EUR Ord Inc

10845.10

Global Val.Cr.Fd USD Inst Acc

Wealthy Nat Bd GBP Inst Inc

94.50 0.00

1.13

2.19 0.00

Europ. Equity Fd GBP

107.95

SWMC Small Cap European Fund B EUR 12748.04

SWMC UK Fund B

Bid

Regulated
13929.52

Odey Giano European Fund EUR R 116.56

2.13 0.00

Europ. Equity Fd EUR

Global Val.Cr.Fd GBP Ord Inc

Odey Atlas Fund GBP I S

17.33

SWMC European Fund B EUR

Fund

9.19

WA Fixed Income Fund Plc

(IRL)

Regulated
European Multi-Sector

113.33

Yuki International Limited

0.14 0.00

(IRL)

Tel +44-20-7269-0207 www.yukifunds.com


Regulated
Yuki Mizuho Umbrella Fund
Yuki Mizuho Japan Dynamic Growth 6089.00

-71.00 0.00

Selling price: Also called bid price. The price at which


units in a unit trust are sold by investors.
Buying price: Also called offer price. The price at
which units in a unit trust are bought by investors.
Includes managers initial charge.
Single price: Based on a mid-market valuation of the
underlying investments. The buying and selling price
for shares of an OEIC and units of a single priced unit
trust are the same.
Treatment of managers periodic capital charge:
The letter C denotes that the trust deducts all or part
of the managers/operators periodic charge from
capital, contact the manager/operator for full details
of the effect of this course of action.
Exit Charges: The letter E denotes that an exit charge
may be made when you sell units, contact the
manager/operator for full details.
Time: Some funds give information about the timing of
price quotes. The time shown alongside the fund
managers/operators name is the valuation point for
their unit trusts/OEICs, unless another time is
indicated by the symbol alongside the individual unit
trust/OEIC name.
The symbols are as follows: 0001 to 1100 hours;
1101 to 1400 hours; 1401 to 1700 hours; # 1701 to
midnight. Daily dealing prices are set on the basis of
the valuation point, a short period of time may elapse
before prices become available. Historic pricing: The
letter H denotes that the managers/operators will
normally deal on the price set at the most recent
valuation. The prices shown are the latest available
before publication and may not be the current dealing
levels because of an intervening portfolio revaluation
or a switch to a forward pricing basis. The
managers/operators must deal at a forward price on
request, and may move to forward pricing at any time.
Forward pricing: The letter F denotes that that
managers/operators deal at the price to be set at the
next valuation.
Investors can be given no definite price in advance of
the purchase or sale being carried out. The prices
appearing in the newspaper are the most recent
provided by the managers/operators. Scheme
particulars, prospectus, key features and reports: The
most recent particulars and documents may be
obtained free of charge from fund
managers/operators. * Indicates funds which do not
price on Fridays.
Charges for this advertising service are based on the
number of lines published and the classification of the
fund. Please contact data@ft.com or
call +44 (0)20 7873 3132 for further information.

26

FINANCIAL TIMES

Tuesday 8 March 2016

MARKETS & INVESTING


SMART MONEY

Equities

Miles
Johnson

Wall Street rebound boosts IPO hopes

Stakes rise when


gamblers play the
percentage game

nvestors in hedge funds should take a moment to consider the following. Imagine a budding professional
gambler who meets four friends each month for a
poker game around his kitchen table. The players
put in a dollar each and the winner gets to take all
the money home.
The budding professional, through a mixture skill and
luck, performs extremely well and wins the $5 every
month for year, giving a total of $48 minus his own
stake. He has turned his $12 into $60, a 400 per cent return
on his money.
Such is his success that his four friends soon tire of playing him. Instead they decide to invest $100 each for him to
play in a much bigger poker game at a casino. The agreement is that the five will split the profits between them.
The result is that our budding card shark stands to
receive a fifth of any winnings without risking any of his
own money.
Sadly for all involved, when the player arrives at the bigger game it is quickly apparent that the level of competition is far higher than it was around his kitchen table. By
the end of the second year he has lost half of the $400 he
started with.
The first question is: what would his compounded
annual return, expressed as a percentage, look like over
the two years? Second, is this gambler a long-term winner
who deserves to be staked by his friends?
Hedge funds frequently market their services based on
their percentage annual returns for investors after fees.
The problem with the method is, as with the poker player,
it is possible to report impressive-sounding annual percentage gains while having lost money over the long term
investing in financial markets.
Hedge funds begin investing with small amounts of
money. To grow they must make impressive returns
on this asset base to attract
investors.
Some may claim
As they increase in size the
amount that can be lost or double-digit
gained by a small percentage
returns but in
movement in their investments is greatly magnified.
absolute-dollar
There are hedge fund manterms are down
agers who claim to be superinvestors who have made
double-digit returns over many years but who
in absolute-dollar terms have destroyed money over the
course of their careers.
Rick Sopher, chairman of LCH Investments, compiles
an annual list of the best-performing hedge fund managers
of all time, based not on their compounded annual returns
but on the amount they have made as investors over the
lifetime of their funds.
The method has proved controversial. Responding to
a recent Financial Times article about Mr Sophers list
for 2015 some readers argued that ignoring annual percentage gains by the hedge funds resulted in a bias towards
the large investment groups that manage many billions
of dollars.
Bridgewater, at the top of the list, manages $154bn, so
even an unimpressive percentage return will make it
much more than a new fund running only $1bn.
Another criticism is that the dollars made for investors metric favours hedge funds that may have had only
one blowout year. Some of those on the list, such as John
Paulson, made the bulk of their dollar returns betting
ahead of the credit crisis and have posted less impressive
results since.
The LCH method shines a bright light on hedge funds
that make big bets that pay off, and leaves those that make
large losses on a big asset base with no place to hide.
After Bill Ackmans 40 per cent return in 2014 his Pershing Square fund leapt into Mr Sophers all-time list in
the following year. The hedge fund had made $4.5bn
in net gains for investors, having generated $11.6bn in
returns since its launch in 2004.
Since then its largest stock positions have been through
a torrid time and he has given back all the money he made
in 2014. One year after becoming an all-time great, Mr
Ackman dropped off the list.
At a time when larger funds are attracting a far greater
share of new money than smaller groups and start-ups, it
pays to look beyond simple annual returns when trying to
judge whether a hedge fund is really a long-term winner, or
is just riding its luck.
miles.johnson@ft.com

Improved environment
raises expectations, with
several deals in pipeline
NICOLE BULLOCK NEW YORK

The US equity market rebound is seen


reigniting new listings activity after the
weakest start to a year for initial public
offerings since the financial crisis.
Within the next few weeks, we will
see more companies try [to list] because
the market environment is better and
more stable, said Nick Einhorn, vicepresident of research at Renaissance
Capital.
Among the Initial Public Offerings in
the pipeline are moves from companies
that had begun the process to list last
year such as SoulCycle, the chain of
cycling studios chain, and Bats Global

Markets, the second-largest US stock


exchange operator, as well as Albertsons, the grocer, which delayed its listing in 2015.
New listings in the US have all but
dried up in 2016 as volatility and
risk aversion surged amid concerns
about the global economic
outlook.
So far this year, companies have sold
just over $1bn in IPOs in seven deals, the
smallest amount and number since
after the financial crisis in early 2009,
according to Dealogic.
From the same quarter a year ago,
proceeds from listings have plunged 84
per cent.
It has been market volatility and the
general risk-off environment we have
been in, said Jeff Bunzel, head of Americas equity capital markets at Deutsche
Bank. In those market conditions peo-

ple are focused on the existing portfolios performance and not all that interested in looking at new names.
But the loss for the S&P 500 year to
date has been cut to just over 2 per cent,
having narrowed from up to 11 per cent
at one stage this year.
The CBOEs Vix index, a measure of
volatility known as Wall Streets fear
gauge, has also moved back below its
long term average of 20 after rising
above in January and February.
One source of uncertainty is whether
technology companies will return to the
public markets after opting to stay private and raise billions privately at rich
valuations.
The question will be is it worth it for
them to go ahead and bite that bullet or
wait for the market to improve and have
another six months or so to grow into
their valuations, Mr Einhorn said.

84%
Amount proceeds
from listings have
fallen from same
quarter a year ago

%
Year-to-date loss
for S&P 500, having
narrowed from up
to 11% at one stage

Several planned deals, such as the listing of Elevate, an online subprime


lender, were delayed.
The deals that did price included biotech companies supported by the interest of existing shareholders.
Insiders bought 2.5m shares of an IPO
for Proteostatis Therapeutics, a company working on therapies for diseases
caused by problems with protein
processing, in February, for example.
Bankers also are marketing deals
against poor performance from 2015s
slate of listings.
According to Renaissance Capital, a
manager of IPO ETFs, the average IPO
from last year was down 18 per cent
from its offer price.
Among the laggards, shares of
online marketplace Etsy are trading at
$8.82, about half the $16 listing price last
year.

Analysis. Capital markets

Trend-following hedge funds lead performance


Computers have been beating
their highly paid human
counterparts so far this year

HFRX Macro: Systematic


diversified CTA index
Yearly returns (%)
4
2

MARY CHILDS AND


STEPHEN FOLEY NEW YORK
DAN MCCRUM LONDON

Computer-driven hedge funds


renowned for trend-following are
beating their highly paid human counterparts so far this year after struggling
to make money in four of the past
five years.
As stock markets and commodity
prices continue rebounding this month,
the question is whether these funds,
often known as commodity trading
advisers, or CTAs because of their legal
set-up, can still prosper.
Such systematic funds, which surf
trends using financial models and algorithms, perform well whenever there is
a clear direction for markets.
Down markets are as good as
uptrends, so long as they are clear, and
in January and most of February, financial uncertainty proved profitable.
Lists of the best-performing funds
were dominated by trend followers and
quantitative specialists.
As of February 17, CTA funds were up
7 per cent but the gain for the year
resembles a more modest 5.4 per cent,
according to Socit Gnrale.
Troy Gayeski, partner at the fund of
hedge funds SkyBridge Capital, says
investors have been burnt before by
chasing returns in CTAs but that this
time it is different.
He adds: Typically, their peak
amount of capital is after the peak of
their performance.
But the capital they are attracting
now which is a modest amount relative to the size of the hedge-fund industry is capital that is looking ahead.
The enthusiasm for CTAs comes amid
the struggles of hedge funds that invest
on the basis of fundamental analysis
and insight.
Many funds are sold on the basis that
the investment profits they will produce
for clients will not be correlated with
the performance of regular investment
portfolios.
The argument reflects the legacy of
the 2008 financial crisis, when many
markets crashed in unison and the average hedge fund fared no better than
holding a common mix of stocks and
bonds.
According to data provider HFR, the
typical hedge fund lost 3 per cent of
its investors money in January and

0
-2
-4
-6
-8
2011 12

13

14

15

Jan
2016

Macro: Systematic
diversified assets
$bn
300

200

100

2005 07

09

11

13

15

Source: HFR

Enthusiasm for
CTAs comes
amid the
struggles of
hedge funds that
invest on the
basis of
fundamental
analysis and
insight Alamy

Commodities

February. A narrower HFR index of


quantitative and CTA funds showed
gains of more than 5 per cent in the
same period.
Assets dedicated to systematic macro
strategies ballooned after the crisis,
doubling to $188bn in 2011, HFR data
show.
They peaked at $270bn in 2014,
before dipping this year.
Prime brokers which are the arms
of investment banks that help hedge
funds trade and find capital report
increasing interest in CTAs from the
pension funds and sovereign wealth
funds that entrust money to hedge fund
managers.
In the beginning part of the year,
the assets have gone up, says James
Skeggs, head of alternative investments
consulting at SocGens prime services.
I would expect that CTA assets are
increasing due to performance, but also
asset inflows.
Of course, while the unifying aspect

of CTAs reflects a reliance on computer


programs to predict trends, their
aims and performance can vary dramatically.
A Schroders fund that tracks the
flagship fund at Leda Bragas Systematica, which oversees $10.2bn, returned
9.9 per cent through to the end of February, fuelled by bets on fixed income and
against energy and equities, according
to a person with direct knowledge.
Cantab Capitals main $2.7bn Quantitative Fund has gained 12.6 per cent this
year, according to people familiar with
the matter, after losing 8.2 per cent
in 2015.
Whether good CTA performance can
continue as market sentiment shifts and
crucial central bank meetings loom
large in the coming weeks, starting with
the European Central Bank on Thursday, represents a big test for the sector
and investors.
If you believe we are going to have
a bear market, CTAs will have a chance

to make money in that environment,


and in the meanwhile they offer noncorrelated returns, says Mr Gayeski.
The danger with following a trend
comes from herding, as additional
sellers can lend weight to a falling market.
Should it turn, the need for those sellers to switch around and start buying
can be like removing the weight from a
spring: it rebounds violently.
Nikolaos Panigirtzoglou, strategist
at JPMorgan, points to the large short
position held by such funds in S&P 500
futures, which provide a straightforward way to bet against the market.
The stock market, however, has
staged a notable recovery over the past
month, while prices for oil and metals
such as copper and iron ore have surged
sharply higher.
The pain trade is to be short right
now, adds Mr Panigirtzoglou. Some of
these guys who are short will be forced
to capitulate.

Capital markets

Oil rises above $40 a barrel as supply tightens Corporate issuers break cover for spring thaw
DAVID SHEPPARD, ANJLI RAVAL
AND HENRY SANDERSON

The oil price jumped above $40 a barrel for the first time this year yesterday,
extending its rebound from lows hit in
January to almost 50 per cent, as more
traders bet that the worst of a 20month long rout is over.
Sentiment in the oil market has
improved as large Opec and non-Opec
producing countries prepare to meet to
discuss a possible output freeze.
Saudi Arabia, Russia, Qatar and Venezuela agreed last month to put production levels on hold provided that other
countries joined them in the first
co-ordinated action to tackle a global
supply glut that has hammered the
industry since mid-2014.
Its logical for everyone to freeze
their production, Suhail Al Mazrouei,

the UAE energy minister, told reporters


in Abu Dhabi yesterday, according to
wire services. It doesnt make sense for
anyone to increase production at the
current prices.
The biggest oil exporters have had
their budgets slashed by a near-75 per
cent price collapse, which culminated in
a 13-year low close to $27 a barrel.
But there are signs that the market
could tighten. Pipeline outages in Iraq
and Nigeria have temporarily removed
several hundred thousand barrels a day
from the market.
US production, which played a large
role in creating the glut as it surged
between 2010 and 2015, has dropped for
six weeks as the price rout finally
reduces output at shale fields.
Brent crude, the global benchmark,
rose 3 per cent to $40.11 a barrel, the
highest since December. West Texas

Intermediate, the US marker, increased


3.5 per cent to a high of $37.46 a barrel.
Prices have rebounded as much as
48 per cent since hitting $27.10 in January. Part of the rally has come from
financial investors closing out bets on
falling oil prices and repositioning for
a recovery.
Hedge funds and other money managers increased their bets on a Brent
price to a record last week, according to
exchange data published yesterday. On
the Intercontinental Exchange the net
long position the difference between
bets on rising and falling prices
increased by 22,171 to 342,460 lots for
the week to March 1, the highest since
records began in 2011.
More and more speculative financial
investors are jumping on the bandwagon, thereby reinforcing the upward
trend, said analysts at Commerzbank.

GAVIN JACKSON

Capital markets are thawing out for


spring with companies looking to sell
new debt as volatility eases and money
flows into bond funds.
US high-yield spreads and the S&P 500
index have returned to levels last seen at
the start of January. According to data
from EPFR, global high-yield bond
funds recorded their biggest weekly
inflow of capital since 2003.
Improving secondary markets have
tempted companies to sell more debt,
and bankers expect a healthy pipeline of
sales if markets remain stable.
You are likely to start seeing those
who stayed away during the volatility of
January and February resurface, and it
is going to make for a very healthy market in the next few weeks, said Marco
Baldini at Barclays.

Sales in the past three weeks account


for 64 per cent of all euro-denominated
issuance and 49 per cent of dollar bonds
sold this year. Global corporate issuance
is 14 per cent lower than the same
period in 2015, according to Dealogic.
The market expects further easing
from the European Central Bank meeting on Thursday. As much of 25 per
cent of economists out there think the
ECB might buy corporate bonds, said
Hans Lorenzen at Citigroup.
The turnround has been pretty
broad, across asset classes and between
markets, to varying degrees. And thats
why this isnt just about the ECB. Its
about [better] US data, US inflation
expectations moving higher, oil price
moving higher. Its a virtuous circle.
Investors have a newfound tolerance
for risk after a difficult start to the year
when pessimism hit asset prices. The

market has come a long way, said Mr


Baldini. It is quite amazing how well
spreads are performing, how well stock
markets are performing.
ExxonMobil, the oil major, priced its
biggest bond deal to date last week, raising $12bn. It followed Johnson & Johnson, which raised $7.5bn the previous
week, and Cisco Systems $7bn deal.
The trend of US companies turning
to the euro market is still strong, said
Armin Peter at UBS. Coca-Cola and
IBM are the latest issuers turning to
Europe, pushing the share of US issuance volume to 36 per cent year to date.
Last Thursday Solera issued the first
high-yield bond used to fund a leveraged buyout in 2016, raising $1.73bn.
In Europe a 3.9bn deal from BT, the
UK telecoms company, followed a 6bn
deal from its competitor Vodafone the
previous week.

Tuesday 8 March 2016

27

FINANCIAL TIMES

MARKETS & INVESTING


TRADING POST

Jamie
Chisholm
The central banks of Canada and the
eurozone will reveal their monetary
policy decisions on Wednesday and
Thursday, respectively.
Royal Bank of Canada (the
private-sector entity, not the central
bank) says a trade for the week is to
go long the euro versus the loonie, in
other words buy the EUR/CAD cross.
The rationale is partly based on
the assumption that the European
Central Bank may disappoint. Again.
We think the risk is that the
package of easing measures
announced by the ECB this week falls
short of inflated market expectations,
with just a 10 basis point depo[sit] rate
cut and no immediate change to the
QE programme, says RBC in a note.
Recent selling in the common
currency has been partly predicated
on the ECB easing expectations, so it is
possible euro shorts will be vulnerable.
On the Canadian side, RBC thinks
the big risk is if the Bank of Canada
mentions the negative impact of the
recent appreciation of CAD (nearly 8
per cent in trade-weighted index terms
since the January trough) either at
the meeting itself or in [governor]
Polozs speech the following day.
That could weaken the loonie.
Like almost all EUR-crosses (except
EUR/CHF), EUR/CAD is correlated to
general risk appetite and this trade
will clearly work better in a generally
risk-off environment. A disappointing
ECB outcome may help foster such
an environment.
RBC went long EUR/CAD at 1.4648,
with a target of 1.4950 and a stop
at 1.4500.
jamie.chisholm@ft.com

Euro

Against the Canadian dollar (C$ per )


1.6
1.5
1.4
1.3
Mar
2015
Mar
Source: Thomson Reuters Datastream 2016

Global overview

Oil grabs investors attention as


encouraging signs accumulate
S&P 500 on track for a
fifth day of gains as crudes
strong rise and China
optimism further dispel
fears of US recession
DAVE SHELLOCK

US stocks were heading for their fifth


successive day of gains the longest
winning streak since October as Brent
oil jumped back above the $40 a barrel
mark for the first time in three months.
Iron ore also enjoyed a remarkable
rally as hopes for increased demand
from China were fuelled by an upbeat
speech from Premier Li Keqiang to the
annual National Peoples Congress.
German government bond yields
edged back ahead of this weeks European Central Bank policy meeting,
which is widely expected to result in the
unveiling of further stimulus measures.
Gold held within easy striking distance
of Fridays 13-month high.
But it was oil that grabbed much of the
days attention as Brent leapt 4.2 per
cent to reach a three-month peak of
$40.36 a barrel. That marked a 49 per
cent retracement from a 12-year intraday low of $27.10 on January 20.
US West Texas Intermediate was up
4.5 per cent at $37.55.
Supply glut fears have taken a back
seat as of late, with the oil markets
focus shifting from pessimism over
ample inventories to optimism over
declining US production, said Norbert
Ruecker, head of commodities research
at Julius Baer.
We still believe that oil prices will
experience a short-term bounce but no
long-term recovery, but see further
upside in the near term.
Upadhi Kabra and David Martin,
commodities analysts at JPMorgan,
noted that both Brent and WTI futures
had broken through their 50-day

London
Mitie slides on concerns
about its trading update
Bryce Elder
Outsourcer Mitie tumbled yesterday
on fears its next trading update might
include a profit warning.
Jefferies cut earnings forecasts ahead
of Mities year-end statement, due on
March 24.
While Mitie said at interim results in
November that profits would be skewed
towards the second half, uncertainties
over the economy and the Brexit

Commodities bounce back from bottom: FT.com/video


Oil prices are marching higher, sparking a wider sector
comeback. Neil Hume looks at whether it can be sustained
moving averages during recent trading
sessions.
Major oil producers are reportedly
meeting on March 20 in Russia to discuss a production freeze agreement,
they said. Uncertainty remains concerning the deal and whether the production will still be capped by the key
producers without involvement from
other major producing nations.
Energy was the best-performing sector in the S&P 500, with a gain of 1.7 per
cent, as the benchmark US equity index
inched up 0.2 per cent to 2,004 by midday in New York.
The S&P 500 has rallied nearly 11 per
cent from a two-year intraday low on
February 11 and is less than 2 per

freeze crude output at January levels.


The materials sector, one whose
fortunes are shaped by the outlook for
the Chinese economy, also had a better
showing with a 1 per cent increase. CF
Industries was the biggest gainer in the
materials sector, advancing 5.7 per cent
to $36.55, while shares in Alcoa gained
3.7 per cent to $9.93.
The sector was helped after Chinas
Premier Li Keqiang laid out a plan to
target growth of between 6.5 per cent
and 7 per cent this year more
ambitious than many economists had
forecast. Anxiety about the Chinese
economy is enduring a big retreat from
the double-digit growth that marked
much of the past two decades has been
one of several drags on the US stock
market in 2016.

referendum make that guidance look


ambitious, Jefferies analyst Kean
Marden said.
Mitie faced criticism this month over
its management of Europes biggest
immigration detention centre, with the
prisons inspectorate branding the site
near Heathrow as dirty.
Jefferies set a 270p target on Mitie
shares, which fell 7 per cent to 273.5p.
The broader market pared losses on a
continued rally for mining stocks. The
FTSE 100 closed down 0.3 per cent, or
17.03 points, to 6,182.40 with Rio Tinto
up 5 per cent to 22.37.
Gold miners missed out as Morgan
Stanley advised clients to take profit.
Randgold fell 3 per cent to 64.15 and
Fresnillo lost 0.8 per cent to 951.5p.
Old Mutual gained 6.9 per cent to
192.1p after confirming it would outline
the findings of a strategic review with
full-year results due on Friday.
Bruce Hemphill, Old Mutuals chief
executive since November, is expected
to flag up the possible disposal or
demerger of its wealth management
division, which analysts value at about
4.5bn or half its market capitalisation.

Other asset managers gained after UK


chancellor George Osborne scrapped
plans to end upfront tax relief on
pension contributions in this months
Budget. St Jamess Place was up 3.4 per
cent to 888p and Schroders added 1 per
cent to 26.51.
A day before its maiden results,
Worldpay faded 2.7 per cent at 291.9p.
InterContinental Hotels was down
1.9 per cent to 26.84 after Citigroup
downgraded to sell.
Citi cited weaker economic lead
indicators and reports of companies
introducing travel restrictions.
We like InterContinentals asset-light
business model and exposure to the US
but do not think it will be immune from
slowing global travel trends, said Citi.
The group positively surprised the
market with the size of its $1.5bn cash
return but once complete the groups
asset disposal/cash return story will
have largely played.
Just Eat, the takeaway ordering
website, fell 9.6 per cent to 383.3p on
news late last Friday that its chief
executive and finance director had sold
most of their personal shareholdings.

Mar

2015

Source: Thomson Reuters Datastream

Mar
2016

350
300
250
200

Day's
Indices
S & P 500

Close

change

2002.15

2.16

DJ Industrials

17058.40

51.63

Nasdaq Comp

4721.96

4.94

Russell 2000

1204.70

-8.35

VIX

The resurgence in shares of US energy


producers remained the most striking
trend on Wall Street even as the broader
equity market struggled for direction.
A strong rally in the oil price dragged
the S&P 500 Energy Index up 1.3 per
cent, with Murphy Oil, Southwestern
and Chesapeake Energy all clocking
gains of more than 10 per cent.
The energy sector has chartered a
volatile course this year, whipsawed by
the swings in the oil price. West Texas
Intermediate, the US oil benchmark, fell
as low as $26.21 on February 11. It has
since rallied hard, rising 42 per cent and
was up 4.5 per cent at $37.52.
The advance comes as the number of
rigs drilling for oil in the US has dropped
to the lowest level since 2009 and as
Saudi Arabia and Russia have agreed to

ChinaFotoPress/Getty Images

Yesterday proved a calmer day for the


wider stock market. By midday, the S&P
500, the broadest gauge of large-cap US
stocks, edged up 0.1 per cent to
2,002.32. After a three-week rally, the
index has trimmed its loss for the year
from 10 per cent to 2 per cent.
The relative lack of direction was
echoed by the Dow Jones Industrial
Average which was up 0.3 per cent at
17057.86, while the Nasdaq, edged up 0.1
per cent to 4721.82.
Elsewhere, gold miners advanced
yesterday as the precious metal
advanced ahead of the Federal Reserves
monetary policy setting meeting next
week. Expectations for a rate rise in
March remain low and that has
bolstered sentiment for the nonyielding precious metal.
Gold prices have advanced more than
19 per cent so far this year and hit a 13month high in the previous trading
session.
Barrick Gold advanced 3.5 per cent to
$14.20, Newmont Mining climbed 1.5
per cent to $26.49. Kinross Gold
advanced 2.7 per cent to $3.07 and
AngloGold Ashanti shares rose 4 per
cent to $13.45.
Celldex Therapeutics fell 50 per cent
to $4.17, after the biopharmaceutical
company said it would discontinue a
late-stage study of its brain cancer
treatment, Rintega, after an
independent interim analysis showed
disappointing results.
Dunkin Brands fell 2.5 per cent to
$46.95 after analysts at Guggenheim
Securities downgraded the stock from
buy to neutral.

Index

Richard Blackden and


Mamta Badkar

12pt semibold S&P 500 index


9.6pt regular Change on day

Feb

S&P 500 materials sector

Wall Street
Energy producers rise
while broader equities
struggle for direction

Markets update
Change on day

17.19

0.33

US 10 yr Treas Bd

1.91

0.04

US 2 yr Treas Bd

0.91

0.05

cent below where it started the year.


Apart from the recovery in oil prices,
a more encouraging tone to US economic data releases, culminating in
Fridays solid non-farm payrolls data,
has underpinned the stronger tone on
Wall Street.
What always looked like overdone
fears of an outright US recession have
now been dispelled, so leadership
within the US equity market has rotated
back to energy, financials and materials
stocks, said Ian Williams, strategist at
Peel Hunt.
European stocks could not extend
their gains, however, and the Stoxx 600
index ended 0.3 per cent lower
although it had fallen nearly 1 per

Trading Directory

cent at one point during the session.


The Nikkei 225 in Tokyo fell 0.6 per
cent although there was a brighter
showing from the Shanghai Composite,
which climbed 0.9 per cent.
In Beijing Mr Li announced a China
growth target range for 2016 of between
6.5 per cent and 7 per cent, and projected that the fiscal deficit would rise to
3 per cent from a target of 2.3 per cent
last year.
Amid optimism that China would
avoid a hard landing iron ore prices
rose a record 19 per cent.
Mr Li also reiterated previous pledges
to hold the renminbi currency basically stable.
Data released yesterday showed that
the drop in foreign exchange reserves
during February had been smaller than
expected, suggesting that Beijing still
had the firepower to prevent a destabilising fall in the renminbi.
Michael Hanson, global economist at
BofA-Merrill Lynch, said there were
strong incentives for China to avoid a
large, one-off devaluation.
First, it could push global markets
back into a period of uncertainty and
heightened volatility, as government
officials credibility would be damaged.
Second, it would be a double blow to
attempts to restructure the economy.
Third, it would likely be met by similar
actions by Chinas trading partners,
blunting any possible competitive
advantage.
Meanwhile the ECB is set to take centre stage on Thursday when it is widely
expected to push interest rates further
into negative territory, and possibly to
increase its asset purchase programme.
The 10-year German Bund yield fell
2 basis points to 0.22 per cent, although
the euro recovered from an early dip
against the dollar to trade 0.1 per cent
higher $1.1016.
Gold was up $2 at $1,260 an ounce,
after hitting $1,279 on Friday, the highest since February 2015.

for 1,2,3

0.08%

2016

Mar

2000
1950
1900
1850
1800

US equities Hefty gains for oil prices


helped the S&P 500 regain the 2,000
level by midday in New York, with the
energy, healthcare and telecoms
sectors leading the way higher

FTSE 100 index


Change on day

Feb

0.27%

2016

6200
6000
5800
5600
5400
Mar

UK equities Gains for mining stocks


after a jump in iron ore prices helped
limit the FTSE 100s decline, while Old
Mutual rose 6.9 per cent after reports it
was planning a 9bn break-up

Eurofirst 300 index


Change on day

0.25%

1350
1300
1250

Feb

2016

Mar

1200

European equities The Eurofirst 300


pared an early fall although shares in
EDF ended 6.7 per cent lower following
the resignation of the utility groups
finance director

Nikkei 225 index


(000) Change on day

0.61%

17.0
16.0
15.0

Feb

2016

Mar

Japanese equities The Nikkei ended


lower as profit-taking emerged after a
four-session run of gains, with insurers
among the days biggest fallers

28

Tuesday 8 March 2016

Analysis. Currencies

INSIGHT

Flicker of light starts to shine on EMs

Mohamed
El-Erian

Relying on central bank


policy manoeuvres
risks more volatility

here is more at stake for markets than enhancing the value of stocks as the global economy
fails to achieve lift-off, and governments
struggle in the transition from overdependence on central banks.
Availability of liquidity to support good functioning of
markets, plus the appropriate balance between regulation
and efficiency, are also in play. All of which renders the
outlook for markets an important component of prospects
for economic growth, jobs, inequality and financial stability; and this when popular disillusionment fuels antiestablishment movements on both sides of the Atlantic.
In their meeting in China 10 days ago, G20 officials
pointed to risks facing a weakening global economy still
burdened with excessive debt. In assessing their collective
policy requirements, they emphasised a need to pivot
from prolonged and excessive dependence on unconventional monetary policy and to a comprehensive deployment of monetary, fiscal and structural measures.
Yet, as critical as these recognitions are the G20 did not
follow through with strengthened policy formulation and
implementation. The meetings policy commitments were
a rehash of what has been said before; and these have been
largely unimplemented, as political polarisation and dysfunction in key countries act as constraints. Moreover,
when China acted just hours after the G20 meeting ended
to stimulate its slowing economy it again resorted to monetary policy, injecting an extra $106bn of liquidity.
Continued overreliance on
monetary policy is likely to
Even small
deliver even less in sustainable growth while increasing changes to
the threat of damaging collatparadigms
eral damage and unintended
consequences. As such, it also cause outsized
puts at risk asset prices that,
price moves
having already been bolstered
by significant injections of
public and private sector liquidity, are decoupled from
fundamentals. Improved economic and corporate fundamentals are needed to validate the existing prices of risk
assets, most importantly stocks, and to take them higher.
A macroeconomic pivot to a more comprehensive policy
response is also required to underpin good functioning of
markets. On more than a couple of occasions in recent
years, including the May 2013 taper tantrum and concerns with Chinas economic wellbeing, availability of
market liquidity has been insufficient to allow orderly
portfolio repositioning. And this has accentuated a rise in
realised volatility in many market segments.
These days, even small changes to market paradigms
cause outsized price moves, contagion, and unsettling correlations among asset classes. The phenomenon is accentuated by todays lack of patient capital, be it investments from sovereign wealth funds or long-term institutional investors in both Europe and the US that were previously able and willing to act counter-cyclically. In such
circumstances, broker-dealers are even less inclined to
step in, fearing a backlash both from regulators and their
shareholders with shorter-term horizons.
The threat of such market instability also assumes
another regulatory dimension now components of risktaking have morphed and migrated outside the banking
sector. As such, it could encourage further regulatory
interest in non-banks and greater disclosure requirements, be they asset managers, hedge funds or fintech.
This sets up the possibility of spillovers and spillbacks.
Should this happen, global economic weakness and toopartial a policy response would put pressure on asset
prices. With the possibility of market malfunctions and
increasing regulation, this would spill back on to economic
activity via less robust consumption, more difficult financial intermediation and muted corporate investments.
Without better economic and corporate fundamentals
validating existing market prices and providing them with
a stronger anchor, the global economy will find itself at
much greater risk of contamination from more volatile
and occasionally malfunctioning financial markets. The
result would be the increased threat of an even deeper
downturn in growth that would fuel inequality, add to popular dissatisfaction with the political process and render a
sustainable recovery even harder to deliver.
Mohamed El-Erian is chief economic adviser to Allianz and
author of the book The Only Game in Town

More comment and data on ft.com


Y Fast FT Our global
team gives you marketmoving news and views,
24 hours a day, five days
a week. ft.com/fastft
Y Alphaville Our
irreverent financial blog.
Join Paul Murphy and
Bryce Elder for the daily
Markets Live session at
11am. ft.com/alphaville
Y beyondbrics News and
comment from more
than 40 emerging

economies, headed
by Brazil, Russia, India
and China.
ft.com/beyondbrics
Y Podcast The Hard
Currency podcast takes a
look at what is driving
the global currency
market. ft.com/podcasts
Y Lex Video Analysis
and opinion from the
team on the hot issues
affecting companies and
markets. ft.com/lexvideo

Forex investors seek signs that


bottom has been reached as a
range of factors fuel optimism

At end of tunnel?
Emerging market
currencies against the dollar
JPMorgan EM currency index

ROGER BLITZ

Stumbling for the past few months


through a pitch-black forest, looking for
a way out, foreign exchange investors
may finally have found a flicker of light
to follow. It is a barely discernible flame
and it leads them to emerging markets.
The once-shining glow of EM FX,
which burnt proudly through the first
decade of the 21st century, was all but
extinguished last year by the oil price
debacle, Chinas slowdown and the dollars hefty appreciation.
Yet the embers could not quite be
doused altogether, and are showing
signs of life. On Friday, JPMorgans
EM currency index hit its highest level
since December.
Not exactly a reason to step out with
confidence, maybe, but when you have
been running around in circles anything
that points the way forward will do.
EM FX this year is a bit better than
flat, says Paul McNamara, EM investment director at GAM. That may not
sound like a ringing endorsement, but
after falling in value by nearly a fifth in
2015 it is a persuasive case for believing
that a bottom has been reached.
It means, says Mr McNamara, that
the underperformance of EMs against
leading currencies is at an end.
It does not mean, though, that a
strong EMs rally has begun. Yes, the oil
price seems to have stabilised, now that
it is hovering at about $40 a barrel. Yes,
the dollar rally appears to be on hold,
now that the Federal Reserve is unlikely
to pursue an aggressive interest rate
tightening cycle.
A more moderate rate cycle pace is
a good development for EM, says Peter
Kinsella, EM strategist at Commerzbank. But investors eyeing EM FX need
to have a view not just on whether
oil price stability is sustainable and the

The five-year break-even


rate, a widely watched market indicator of inflation
expectations, has risen to its
highest level since August.
Known as an imperfect
gauge of real world activity, it
is nonetheless the latest sign
of a growing optimism ahead
of an important Fed meeting
this month.
Laurence Mutkin, global
head of rates strategy for
BNP Paribas, said: When
you look at the US inflation
picture its increasingly
difficult to find an inflation
index that is not already at
2 per cent, or above the
Feds target.
Movement in break-evens
in recent weeks came as the
S&P 500 share index recovered most of the losses in a
turbulent start to the year,
and oil prices rebounded
from 12-year lows.
Some predict action from
the Fed, after Decembers
increase in interest rates, the
first in almost a decade, highlighting the divergence from
Europe, where the central
bank is set to announce stimulus measures this week.
Expectations for US rate
rises dwindled as financial
markets shuddered into the
new year, with the chances of
any increase in 2016 falling
from 90 per cent to 50 per
cent, as implied by shortterm interest rate futures.
There is going to be tightening of monetary policy by
more than is expected by the

Dec 2015 Federal Reserve


raises interest rates for first
time since 2006, further
boosting the strong dollar

Feb 2016 Brent crude


oil price sinks to $27
a barrel, its lowest
since 2003

88.5

Mar 4 2016

66.2

FT graphic Source: Thomson Reuters

Many EMs
continue to
do quite well.
The problem
is that the big
economies
hold back the
smaller ones

Inflation expectations
gather pace in US
Inflation has begun to stir,
according to some prices in
US bond markets, which
show investors anticipating
a change in the economy
that could give the Federal
Reserve greater room to
raise interest rates.

Aug 2015 Sharp


depreciation in renminbi
triggers widespread
market anxiety

Jan 1 2014

Capital markets

DAN MCCRUM

Mar 2015 Speed of


dollar strength sees
euro fall to $1.05, its
lowest since 2003

average investor, said John


Higgins, chief markets economist for Capital Economics,
which expects three further
rate rises from the Fed this
year.
The five-year break-even
rate is calculated from the
difference between prices for
normal government debt
and bonds where the coupon
is linked to the rate of
consumer price inflation.
It reflects other factors as
well as inflation expectations
such as the general
demand for bonds and
assessments of the risks
attached to them and
much of the debate about
causes of a longer-term
decline in break-even rates
over the past two years has
centred on these effects.
Unofficial estimates of these
factors have not materially
changed this year, however.
You can attribute the
recent rise in break-evens
to a general rise in inflation
expectations, said Mr
Higgins.
Traders of inflation-linked
bonds also pointed to
reduced issuance of them by
the US Treasury boosting
demand and so prices, along
with the recovery in prices
for oil and stocks.
In Europe, where recent
economic data show
consumer prices declining
in February, five-year breakevens have recorded the largest weekly rise in 15 months.
After three months of
steady decreases, however, it
was sufficient only to return
five-year break-evens to 1.5
per cent, a level that until last
month was a post-crisis low.
Although its nice to see a
bounce, were still at
extremely low levels relative
to history for break-evens,
said Mr Mutkin.

Fed remains on a moderate rate path,


but whether EM fundamentals are
really improving.
According to Ousmne Mandeng at
New Sparta Asset Management, many
EM countries continue to do quite
well. The problem is that the big economies hold back the smaller ones.
When they do badly, they damage
sentiment, says Mr Mandeng.
You can look at positive fundamentals
in countries such as Argentina, Peru and
Colombia, says Daniel Tenengauzer, FX
strategist at RBC Capital Markets. But
these guys are small.
There are political risk issues in Brazil, Russia and Turkey, while China
continues to make investors riskaverse, fearing being burnt by another
sharp depreciation of the renminbi.
Mr Tenengauzer says people are very
worried about waking up in the morn-

ing to find the renminbi weakening


towards Rmb7.50. They wouldnt mind
if it depreciated gradually but they are
very worried about a one-off [decline].
They have good reason, according
to Stuart Oakley, head of EMs at
Nomura. He expects that the Peoples
Bank of China will allow the renminbi to
depreciate against the dollar this year,
driven not so much by economic policy
as the need to preserve FX reserves.
Many FX analysts believe the PBoC is
drawing on those reserves to prevent
the currency from weakening.
I feel its inevitable theyll step back
and allow real market forces to determine the level which will of course be
weaker, says Mr Oakley.
The EM bounce is coming more from
technical drivers in the market than
fundamentals. Positioning by fund
managers on EM equities is on the rise,

according to Bank of America Merrill


Lynchs most recent survey.
Look at the broader environment of
global disinflation, and you should
be more cautious on EMs, says Mr Kinsella. Thats a bad environment for
equities.
Liquidity, or the lack of it for EM
assets, should also make investors think
again. US assets attract liquidity, and as
Mr Mandeng says, in an uncertain
period, liquidity is key for investors.
Prospects for EMs rest on many factors, and the most significant appears to
be the dollars performance.
Will the combination of factors supporting EMs hold? A weaker dollar,
China worries easing, oil stabilising, EM
fundamentals improving those are
benign conditions that investors will
need if they are to keep on the path to
the flickering light of EMs.

FT EXECUTIVE APPOINTMENTS

Women in Business
www.ft.com/recruit @carola_hoyos

Tuesday March 8 2016

Diversity at the top pays dividends

oes the gender of executives


make a difference to business performance? The evidence is mounting that it
does.
McKinsey, the management consultancy, has published research showing
that mixed-gender boards outperform
all-male boards. Separate studies found
a positive relationship between the
diversity of executive boards and
returns on assets and investments
among Fortune-listed US companies.
Sodexo, the outsourcing company,
even has data that suggest global companies in which women make up at least
a third of board members achieve far
higher profit margins than rivals with
fewer women on their boards.
Theories about why more gender
-balanced companies perform better
smack of common sense. If 50 per cent
of the worlds population is facing barriers to reaching top jobs, that is huge
untapped potential businesses are missing out on, says Francesca Lagerberg,
global leader for tax services at Grant
Thornton.
Understanding this to be true is easy.
Proving it, however, is difficult.
If companies with a significant
number of women in senior leadership
roles perform better than those without
(see box), there are no studies that
definitively show female management
to be the cause.
This uncertainty in turn is undermining progress towards gender equality,
according to some HR executives and
researchers.
Ms Lagerberg for example acknowledges that correlation does not necessarily mean causation. But at the same
time, she says, the growing body of
compelling research linking corporate
performance to having female leaders is
unlikely to be a coincidence.
The absence of explicit proof of cause
and effect is a red herring, argues Linda
Eling-Lee, head of environmental,
social and governance research at MSCI,
investment portfolio analysts which
recently conducted a gender-analysis of
1,621 global companies across 24 countries.
There are actually very few causal
links that you can make in any type of
social science, let alone financial performance in business, she says. I think
that people who are sceptical of the
premise will be sceptical regardless.
Investors are already starting to pick
up on the idea that diversity brings dividends, says Ms Eling-Lee, who explains
that MSCIs gender-analysis was driven
by institutional investors who are interested in understanding if there is something to be gained [in looking at diversity] from an investment perspective.
It is not so much that the firms that
are gender diverse do better, its that the
firms that arent gender diverse do worse,
because they are impeding themselves.
MSCI found that the return on equity in
companies with greater diversity at the
top was really significantly higher.

Female execs boost profit margins

9.0
8.5
8.0
7.5
7.0
6.5
6.0
5.5

10

15

20

25

30

35

40

Men are more likely to


gain support as women lack
the necessary contacts, says
Sara Calian
Natasha Pilbrow, co-founder of Londonbased LeSalon, a beauty app, leaves
most of the work of pitching to potential
investors to her male co-founder.
Its a little bit scary when I look
around and the tech scene is dominated
by young guys who eat, live and die by
their start-up, and that is the benchmark and expectation that has been
set, she says. People are aware that
female-founded start-ups perform well
but, on a day-to-day basis, there are not
many women in the room.
Rather than showing lack of courage

Furious
feminist
Gloria
Steinem
on the
next
generation
and on a
woman
becoming
US
president
Page 2

45

Attracting the best


Companies should scrap
paintball and introduce
flexible working and
childcare

Percentage of female C-suite directors in company

Page 3

Campus rape
Apps to fight violence
against female students
shine light on distress
Page 5
Source: The Peterson Institute for International Economics, in collaboration with EY, study of board directors in 21,980 firms headquartered in 91 countries

Room at the top


Execs or non-execs?
The appointment of women to
senior management roles has a
greater impact on an organisations
financial performance than their
appointment as non-executive
directors.
This is the finding of research by
the Peterson Institute for
International Economics, and it
comes despite the focus on women
in corporate boardrooms driven by
Lord Davies review of women on
boards in the UK and the Thirty
Percent Coalition in the US.
Marcus Noland, the report coauthor, says: With respect to
women on the board, evidence is
mixed. But the data on women at
C-suite level is much more robust
and solid we can torture that
data any way you want and still get
the same answer. For the sample as
a whole, firms with more women
can expect a 6 percentage point
increase in net profit.
This, says Mr Noland, points to
the importance of establishing a
pipeline of female managers and
leaders in a company, rather than
adding female non-execs at the top
and hoping for an immediate effect.
Carolyn Fairbairn, directorgeneral of the UKs Confederation
of British Industry, backed this view
in a speech in January, saying:
Non-executive directors and even
chairmen attend between four and
10 board meetings a year . . . [But]
it is the job of executives to take
daily decisions, shape and define
strategy, and influence culture
through the everyday examples
that they set.
TS

That was a fairly stark result . . . and


investors are interested, says Ms ElingLee. In this more dynamic and competitive world you need a fuller range of experiences and perspectives at the very top
of the company.
Looking at the numbers by sector tells
a similar story about the benefits of
diversity. The accounting firm Rothstein Kass in 2012 found that hedge
funds run by women outperformed
hedge funds led by men. Among the top
500 mining companies, earnings per
share were 13 times higher at those with
women on their board, than at those
without, PwC reported last year.
Mary Barra, a rare woman at the top
of the automotive industry, says she was
given the chance to work her way up to
becoming General Motors chief executive because 20 years ago at GM people
valued diversity.
She says that when you want to hire
someone to get the job done . . . you
should pick people not like you to create
that diversity, which will be across gender and across cultures and across experiences.
Marcus Noland, executive vice-president and director of studies at the Peterson Institute for International Economics, says evidence that gender diversity
makes business sense is not hard to find.
He points to the example of a multinational baby formula company that only
recently ended its decades long history
of men running the marketing department for a product bought mainly by
women.
If a firm is not advancing smart, talented, ambitious employees, and one of
its rivals is, then the rival is going to outperform, Mr Noland maintains.
Carolyn Fairbairn, director-general of
the CBI, the British employers group,
believes developing more female leaders will make a real difference to the
success of the UK economy, our productivity and the UKs future place in the
world. People of different genders,
from different parts of the world, and of

Male founders win decisively in


fierce battle for start-up funding
Venture capital

Net profit as percentage of revenue

Companies with more


female leaders do better,
but are these women the
cause of the success?
Tim Smedley reports

Inside

in avoiding pitches, Ms Pilbrow is being


smart. There is a good reason why she
hands the job of raising the one-year-old
start-ups 500,000 target to Jean
Michel Chalayer, LeSalons male cofounder.
Female founders are up against what
could be called the Facebook-Mark
Zuckerberg bias, because investors
both consciously and unconsciously
want to support something that has
worked in the past. Men are 60 per cent
more likely to get funding than women,
other things being equal, according to a
2014 study published by MIT, Harvard
and Wharton universities.
But, in terms of hard numbers, it
LeSalons Natasha
Pilbrow, believes
her male cofounder will have
more success
pitching for funds

should not be that way. Venture capital


deals that include women out perform
their counterparts, says San Franciscobased Sharon Vosmek, chief executive
of Astia, a non-profit organisation that is
dedicated to identifying, investing in
and promoting successful women
entrepreneurs.
Ms Vosmek has analysed data from
Dow Jones VentureSource for the past
15 years and says that 64 per cent of successful venture capital-backed exits had
at least one female executive as of 2014.
So why is there such a large gap in the
funding of women in start-ups? First,
there are fewer female founders looking
for capital, which venture capitalists
refer to as the pipeline issue. But there
are other reasons, including the way
women ask for the capital and how they
put their pitches together.
Women are less comfortable asking
for money and doing the promotion that
Continued on page 3

Gender gains: the corporate benefits


of female leaders are hard to ignore

If a firm is not advancing


smart, talented, ambitious
employees . . . then the
rival is going to outperform

different lifestyles, ages, sexuality, religion, physical and mental health capabilities enable better business decisions, she said in a recent speech.
So does the gender mix of top executives really make a difference to business performance?
Yes, but as Ms Fairbairn, who has
occupied both executive and non-executive roles, points out, women form
just one part of the diversity needed for
corporate success.

Young scientists
Stars such as
Olivia Hallisey
belie the
gender divide
in Stem
subjects
Page 7

FINANCIAL TIMES

Tuesday 8 March 2016

Women in Business

loria Steinem does not


drive. Indeed, a whole
chapter in her latest book,
My Life on the Road, is dedicated to the reasons why
she does not. So it seems appropriate I
am interviewing this self-described
modern nomad on a rush-hour train
travelling from London to Cambridge,
during her UK promotional tour.
In Cambridge, Ms Steinem is due to
speak at an event with Laura Bates,
founder of the Everyday Sexism Project.
The day before, she was interviewed on
stage by Emma Watson, the actress and
UN goodwill ambassador for women. In
the past, the political activist and organiser has written that if young women
have a problem, its only that they think
theres no problem. Does she feel
todays feminists are different from the
pioneers of the 1970s movement?
The contrast for me from the past is
how activist young women, how radical
they are, how pissed off they are, she
says. They are way, way ahead of anything in my generation at the same age.
Ms Steinem says she did not become a
feminist until her 30s and she argues
that, notwithstanding the Emma
Watsons and Laura Bateses of today,
women are the only group that becomes
more radical with age. In her 1983 essay
collection, Outrageous Acts and Everyday
Rebellions, she says this is because young
women outgrow the limited power
allotted to them as sex objects and child
bearers . . . [they] havent yet experienced the injustices of inequality in the
paid labour force, the unequal burden of
child rearing and work in the home, and
the double standard of ageing.
Ms Steinem says she has become
angrier since her 30s (Im hopping
mad that more progress has not been
made), although she has certainly
packed in myriad achievements in the
50 years since, founding the Womens
National Political Caucus and Ms. magazine, as well as writing eight books and
leading activism across the globe. One of
the initiatives in which she is currently
involved is fundraising for a radio station run by moderate Syrian women.
She may be angrier, but she speaks
softly and emanates warmth and downto-earth elegance. At nearly 82, she is
beautifully groomed, with perfect

Only women become


more radical with age
Interview Sarah Gordon accompanies feminist Gloria Steinem on a memorable journey

Career highlights
1971 Co-founded National Womens
Political Caucus
1972 Co-founded Ms. magazine
1973 Activism includes successfully
restoring cartoon character
Wonder Womans powers and
traditional costume
1992 Co-founded Choice USA (now
known as Urge), a lobby group for
reproductive choice
2013 Awarded Presidential Medal
of Freedom by US President
Barack Obama

make-up and long manicured nails.


Despite her disquiet over the years with
commentators referring to her striking
looks, Ms Steinem has never resembled
the parody of the dungaree-wearing
bra-less activists of the Vietnam war
era. Nevertheless, she is still fighting
many of the battles of that time.
The day we meet, Lands End, the
clothing retailer, had just removed an
interview with her from its website and
apologised for publishing it, after customers voiced their outrage at the featuring of the pro-abortion activist. One
customer wrote: Are you anti-child?
You want to kill off possible future customers?
Ms Steinem has been on the receiving
end of such hostility for half a century.
In 1978, as she relates in My Life on the
Road, she was invited to speak at a

church in Minnesota. When she arrived


there, cars are circling St Joan of Arc
with huge blow-ups of foetuses
mounted on their roofs, and loudspeakers are blasting, Gloria Steinem is a
murderer! Gloria Steinem is a baby
killer! Today she is understanding
rather than angry, although she says she
will object to Lands Ends censorship.
I think they have never had this
experience before, so I think they are
kind of freaked out. The only reason
[the interview] happened at all was
because theres a new woman heading
the company [Federica Marchionni],
who is Italian and perhaps . . . [the people running the website] are in a more
reactionary part of the company.
The decades of hostility have not
affected her commitment to womens
freedom of choice on abortion. She continues to feel as strongly as ever that
control of reproduction is a key indicator of womens equality in any society
and her latest book is dedicated to Dr
John Sharpe, a London-based practitioner who performed an abortion on
Ms Steinem in 1957, when she was 22.
Given such personal details, it is perhaps surprising that My Life on the Road
has been criticised for including so little
about her personal life. It does not mention, for example, her marriage in her
60s to the father of actor Christian Bale,
or her brush with cancer in the 1980s.
But there are many deeply personal
moments in the book, including a long
essay about her father, a cheerful, loving
itinerant, who worried about my fate
as an overeducated woman, sent her
adverts for jobs as a dancer in a Las

Leaf in a storm:
Gloria Steinem
outside King's
Cross Station
Anna Gordon

Vegas chorus line, and was absent for


much of her childhood, leaving her to
care for a severely depressed mother.
Despite his obvious failings as a parent, she has only generous appreciation
for his qualities because of my father,
only kindness felt like home and
she recognises how much his itchy feet
influenced her own suspicion of the
siren song of home.
The book also details many of her
experiences on the campaign trail, from
Robert Kennedys presidential bid in
1968 to Hillary Clintons competition
with Barack Obama to win the Democratic nomination in 2008. Then she felt
frustrated that interviewers always
wanted her to choose between two as
she felt impressive candidates. For Ms
Steinem, racism and sexism have
always been inextricably linked and the
battle is against both.

S
Im hopping
mad that
more
progress
has not
been made

he is also horrified at the


hostility Mrs Clinton continues to face, particularly from
women. I dont know how
she stands it, she says.
In living rooms from Dallas to Chicago, she writes, I noticed that the Hillary Haters often turned out to be the
women most like her: white, well educated, and married to or linked with
powerful men . . . they hadnt objected
to sons, brothers and sons-in-law using
family connections and political names
to further careers say, the Bushes or
the Rockefellers or the Kennedys yet
they objected to Hillary doing the
same.
But she dismisses concerns that many

younger women, in particular, have


supported Bernie Sanders, Mrs Clintons
rival in the current Democratic presidential candidate selection race, instead
of supporting a fellow woman.
Im glad they are being drawn into
activism by Senator Sanders, she says.
It isnt about getting a job for one
woman, its about making life better for
all women.
I wouldnt [have supported] Sarah
Palin [Republican 2008 vice-presidential candidate] if my life depended on it.
You dont want to see another woman
humiliated because of being a woman.
But that does not mean that I would not
fiercely oppose her at every turn.
She believes, though, that Mrs Clinton
is a better candidate than Mr Sanders.
The latter, she believes, appeals to
unrealistic hopes, while Republican
presidential candidate Donald Trump
offers the politics of fear.
Ms Steinem believes a societys attitude to women says much about its
politics and that it is no coincidence that
many of todays terrorists have
come from the worlds most sexist
environments. She writes in My Life on
the Road that the most reliable predictor of whether a country is violent
within itself or will use military
violence against another country is
not poverty, natural resources, religion,
or even degree of democracy; its
violence against females. It normalises
all other violence.
She acknowledges that much has
improved for women since she became
an activist, although she says albeit
laughingly that there are many
events she would have played differently during her long career.
In the 1960s she wrote about becoming a Playboy bunny at one of Hugh
Hefners clubs. She says the article made
her feel even more excluded from serious political journalism than she had
been before. But the essay is still pertinent 50 years on. New Playboy Clubs are
opening in India, where a book of Ms
Steinems work has just been published,
including A Bunnys Tale.
While Ms Steinem says she does not
know whether to celebrate or mourn
the fact that her message is still so
relevant today, there is no doubt that its
power is undimmed.

Tuesday 8 March 2016

FINANCIAL TIMES

Women in Business

Scrap paintball, add childcare


Recruitment If you
want more senior
female staff, a formal
change of corporate
culture is required,
reports Sara Calian

hrow out the man-sized


T-shirts embroidered with
the companys logo, and the
loud power-point presentations. If your organisation
wants to recruit, retain and promote
women, then bring in flexible working,
networking groups and childcare facilities instead.
A lot of culture changes start by being
thoughtful, says Elizabeth Ames, senior vice-president of marketing, alliances and programmes at the Anita
Borg Institute, a social enterprise that
was founded on the premise that
women are vital to building the technology the world needs.
She adds: There are some obvious
things, like realising that paintball wars
for off-site [events] might not be such a
great idea, or that references to pornography in the office need to stop.
But culture change in business also
requires formal processes. Firstly, Ms
Ames recommends that the systems of
hiring and promotion be made as transparent as possible.
Women also need to apply for more
promotions. I dont recommend promoting someone who is not qualified,
but there should be targets and an effort
on the part of the company to identify
talent that can be developed, she says.
And when it comes to recruiting, Ms
Ames recommends blind resume surveys that do not show the name or
reveal the gender of an applicant. This,
she says, helps organisations to create a
more diverse group of employees.
She adds that recruitment agencies
should be pushed by companies to produce more female candidates.
One of the most successful ways to
recruit women from university campuses is to bring along senior female
employees to inspire them to come forward. At undergraduate level, for exam-

Focused attention: most of Goldman Sachs recruitment events to increase diversity are aimed at women Bloomberg
ple, Goldman Sachs, the investment
bank, last year hosted 40 diversity
recruiting events, 29 of which were specifically targeted to women. We find it
is very beneficial to bring female role
models to campus to talk to female students, says Sarah Harper, Goldman
Sachs head of recruitment for Europe,
the Middle East and Asia.
Another tactic is to target girls before
they get to university. Goldman encourages women as young as 17 and 18 to
consider professional opportunities in
the industry through one-day programmes aimed at A-level and International Baccalaureate students. These
give attendees an insight into the world
of financial services.

We find it beneficial to
bring female role models to
campus to talk to students
Energy company BP has also broadened its recruitment schemes in the past
decade to attract more women, by
approaching them at younger ages in an
effort to encourage their interest in the
industry. The company hosts BP

discovery days for students in their first


and second years of university, to experience working life at the company, as
well as offering internships.
BP also awards university scholarships to help with funding the education
of talented students. The programme is
made up of an equal number of female
and male students.
We are working to develop a relationship with talented individuals who
are [working] in specific disciplines
such as chemical or mechanical engineering, says Victoria Bourne, BPs global head of downstream resourcing.
We dont just show up [on] campuses
and start interviewing. We have
engaged with the recruits at different
points in their education.
BP says that in 2015, 46 per cent of
graduate recruits were women, up from
33 per cent in 2013.
Networking and developing womens
careers once they are working has also
been a priority for both Goldman and
BP. There are 11 womens networks at
Goldman that host networking events
and provide mentoring opportunities.
Last year in London, and for the first
time, the company held two recruiting
events focused on women in technology.
Ms Harper says that one of the main

priorities for retention is a strong focus


on flexibility.
This appears to be working. In 2015,
Goldman reported that women represented 27.5 per cent of its promotions to
managing director, up from the rate of
16 per cent two years ago. The banks
childrens nursery at its London offices
gives each employee a free back-up
allocation of up to 20 days per child a
year.
BP has also developed a strong
approach to agile working, varied
working hours and locations, working
from home and job shares. There has
been a strong emphasis on ensuring
panels for promotions have a diverse
representation of men and women to
make decisions.
BP has publicly set a target that by
2020 women will represent a quarter of
group leaders. When this target was set
in 2011, 15 per cent of group leaders
were women. By 2014 this had risen to
18 per cent.
There is no one, secret answer, says
BPs Ms Bourne. We are trying to
build an inclusive culture, which
is underpinned by strong values
and behaviours, and which facilitate
the recruitment and development
of talent.

Male
founders win
the battle for
funding
Continued from page 1
is required to successfully raise venture
capital funding, says Brynne Herbert,
founder and chief executive of Move
Guides, a UK-based start-up that helps
companies to relocate employees
globally.
It is critical for female founders to
develop their presentations and [have
access to] mentors and seminars that
develop these skills, she says.
Ms Herbert adds that fundraising
often requires a personal introduction
and having a wide network of both male
and female supporters can help founders to find funding.
It sounds obvious but its important
to build a really strong company and be
confident talking about it, she says.
Investors want to make money and
building a strong company will make
money for everyone.
In some cases, women are not scaling
their business to a big enough size to
attract significant funding.
Isabel Fox, head of venture at White
Cloud Capital, has seen 2,500 presentations and met about 150 founders in the
past year. Only a quarter were women.
She says many female entrepreneurs
have successful lifestyle businesses
that aim to make a few million pounds
or dollars a year but are not dreaming
bigger. Men have the confidence to say,
I am going to have the next billion dollar business, and they will knock on 30
to 40 doors, and if they dont get any
money they just say those investors,
just dont get it, she says.
The funding issues for women entrepreneurs need to be addressed even
before the venture capital stage, says
Susanne Chishti, co-editor of The Fintech
Book and chief executive and founder of
Fintech Circle, Europes first Angel Network focused on technology investment
in the financial services sector.
She explains that the funding ladder
starts when family or friends put money
into a business idea followed by private
angel investors who provide the first
external funding round.

Eileen Burbidge Getty


The problem is that financial technology firms operate in a male-dominated environment, she says, noting
that most bank customers, investors
and most senior decision makers across
financial services and technology are
men.
Ms Chishti adds: A lot of big cheques
are being written by men for men. Being
given an introduction and knowing people is very important to a company in its
very early stages.
However, some venture capitalists
say there has been some progress for
female founders. Eileen Burbidge, a
partner at Passion Capital, an earlystage technology venture capital investment company based in London, says
that the representation of women
among founders is improving. She has
more than 2,000 approaches from startups every year and, of those, female
founders have increased from about 3.5
per cent to 5 per cent. It is getting better, slowly, Ms Burbidge says.
She advocates more entrepreneurial
education in universities to encourage
women to pursue start-up ideas.
Both female founders and investors
agree that when a venture capital firm
has female partners, women have a better chance of securing funding. Ms
Burbidges firm has invested in 52
founders in the past five years and four
of those have been women.
Indeed, adding to the number of
female venture capitalists on selection
teams would be another step towards
increasing the amount of money going
into start-ups founded by women.
Astias Ms Vosmek says that the key to
increasing performance and funding for
female founders is to have a diverse mix
of investors on venture capital teams.
The best group performance is not
with likeness, it is with differences.

FINANCIAL TIMES

Tuesday 8 March 2016

Women in Business Technology

When female
tech pioneers
were the
future
Technologys trailblazers Women were not always
detached from computing, writes Sarah Murray

he caused a sensation with


her sultry eyes and smouldering beauty. But Hollywood
leading lady Hedy Lamarr a
star in the 1930s and 40s
was also the co-inventor of a radio transmitter used to secure wartime military
communications that paved the way for
mobile phone technology. Lamarr is
among a cohort of pioneering women
whose technological achievements
often go unsung something many
argue needs to change.
While todays tech superstars are
mostly male, in the early days of computer programming, a woman shared the
limelight. As Charles Babbage was
designing a programmable computing
engine, Ada Lovelace, daughter of the
poet Lord Byron, conceived algorithms
that would enable Babbages Analytical
Engine to conduct different tasks.
Lovelace took a broad view of computings possibilities. She said that if we
could figure out a way of making a science of music, we should be able to feed
that into computers, says Thomas
Misa, director of the Charles Babbage
Institute at the University of Minnesota.
Its not the sort of thing a scientist
would say, but computing seems to
make advances with people that are a
bit visionary.
Vision is one thing, but it is often conflict that serves as an incubator for technological advances. The second world
war was no exception as it created new

career opportunities for women. While


women worked on farms, in munitions
factories and as radio operators, they
also became lab technicians.
When American maths professor
Grace Murray Hopper left her job to join
the war effort, she found herself working on IBMs Mark I computer at Harvard University. After the war, Hopper,
who became a rear admiral in the US
Navy, was instrumental in developing
the compiler, which translates English
instructions into machine code, and the
Cobol programming language.
Her understanding that programmes should be written more
closely to natural language in English
has laid the foundations for software
engineering, says Shilpa Shah, a
Deloitte director who leads the firms
Women in Technology network.
Other wartime pioneers include a
group of women who worked at the University of Pennsylvania on developing
what is credited as the worlds first programmable general purpose electronic
computer, the Electronic Numerical
Integrator and Computer (Eniac).
Some have made their biggest contribution not as inventors or computer scientists, but as businesswomen. One
example is Dame Stephanie Shirley (see
Page 7), who arrived in the UK as a
young refugee fleeing Hitler.
In 1962, she established Freelance
Programmers, a network of professional
women computer specialists. Initially

employing only women (a policy she


had to change in 1975 following the passing of equal opportunity legislation),
the company, later called FI Group, gave
women the flexibility to combine work
with family responsibilities.
Looking back through history reveals
many prominent tech pioneers who
were women. But women working in
technologys rank and file were also well
accepted in the past.
In the US and much of western Europe
in the 1980s, says Prof Misa, women collected almost 40 per cent of computer
science degrees. Today, however, the figure is 15 to 20 per cent. Through the
1980s, computing looked like something of a womens success story, he
says. Computing was doing something
right in attracting women and thats
not the case today.
Many have posited theories for the
change. Some suggest that the advent of
the personal computer which was
marketed to men and boys introduced a male flavour to the culture of
technology.
Prof Misa says that when US colleges
introduced requirements for programming experience of their students, this
also created a deterrent. It was a huge
filter that chased women out because,
for whatever reason, high school computers labs were taken over by boys.
However, while gender biases have
swept across the US and Europe in
recent decades, some parts of the world

Girls allowed:
Karlie Kloss
(right) with
young coders

In the 1980s,
women took
40 per
cent of all
computing
degrees

appear less affected. Minerva Tantoco,


chief technology officer for New York
City, witnessed this when, in a previous
job in banking, she visited her companys offices in China to find that, on
the technology floor, 60 per cent of the
staff were women.
It was proof positive that theres no
reason women cant be in technology,
she says. This has got to be cultural.
People think its normal to be a computer engineer as a woman in many parts
of Asia.
Prof Misa agrees, citing India and
Malaysia as examples. It seems the
gender coding gets done in a different
way, and adds: Computing is seen as a
challenging and well-paid field.
This still leaves large chunks of the
world in which women are perceived to
be not natural technologists.
Clearly schools play a central role in
sparking the interest of girls in so-called
Stem (science, technology, engineering
and maths) subjects. But as technology
becomes all-pervasive in peoples lives,
this should also be the case in education,
argues Rebecca George, a Deloitte partner who has been promoting the participation of women in the IT sector since
the mid-1990s.
Its not just about teaching IT, but
engaging teachers to use it in all their
subjects, she says. We need teachers to
be IT literate.
Civil society groups and non-profits
can inspire girls to take an interest. Girl

Scouts of the USA has, for example,


been incorporating digital technology
into activities such as cookie sales.
The organisations Digital Cookie
platform allows girls to create web
pages, conduct sales online or via
mobile apps, keep track of orders and
use interactive tools to learn about
budgeting, online security and safety.
For companies wanting to build a
pipeline of female technology employees, partnerships with such groups is
one way to contribute. Dell, the computer company, and Visa, the credit card
company, are partners with Digital
Cookie platform, for instance.
Sue Black, an adviser at the UKs Government Digital Service, says home life
also shapes girls interest in technology.
She founded #techmums, providing
workshops for mothers on online security, social media, computing skills and
app and web design.
Celebrity role models are also encouraging girls and women to take up coding. For example, model Karlie Kloss
has formed a partnership with New
Yorks Flatiron School Pre-College
Academy to encourage young women to
apply for a Kode with Karlie scholarship, a two-week programme introducing software engineering and web app
creation.
If they make progress, they will demonstrate, as Lamarr did in the 1940s,
that female success and technological
innovation are not mutually exclusive.

Digital world offers opportunities to break the job mould


Leadership

Flexibility is attractive for


women with MBAs, writes
Emma Boyde
By the time Chantal Ambord reached
Insead she was already heart-set on a
non-traditional career path. The 28year-old says she rapidly gained a reputation for going to fellow MBA students
at the top-ranked business school, to
ask them why they would want to join a
management consultancy and spend
their time doing power point presentations.
I was looking at the future. The reality is that businesses as we know them
today are not going to exist in the
future, she says.
Ms Ambord describes herself as
entrepreneurial, and decided the ideal
career for her would be in a new technology company. She now works in
business development for BlaBlaCar, a

ride-sharing service that pairs car owners with potential passengers.


Ms Ambord, who graduated from
Insead in 2015, appears to be part of an
emerging trend. Research by the FT for
its most recent ranking of the top 100
MBA programmes showed that by 2015,
the number of women from the class of
2012 employed in technology had gone
up by 22 per cent. The same survey
showed that 14 per cent fewer men were
employed in technology roles than three
years earlier.
A similar rise in the number of
women choosing technology careers has
been noted by the US-based Fort Foundation, which mentors women for
workplace leadership roles. Elissa Sangster, executive director, says the organisation partners with 46 of the worlds
highest ranked business schools and
conducts surveys of female MBAs.
Only a handful of women chose
careers in technology companies a few
years ago but that has risen to between
9 and 11 per cent, says Ms Sangster.
Im not surprised by the increase, she

Growth of women (v men) who chose


tech jobs following their MBA
Per cent

Female Male
Finance/Banking
50
Consultancy
IT/Telecoms
40

30
20
10
0
-10
-20
-30
-40
2010 11

12

13

14

15

-50
16

Source: FT rankings

adds. The group going into MBA programmes now can see great opportunities in technology companies.
It seems possible that for female MBA
graduates, technology companies might
finally be offering the chance of some

change in their work prospects. Women


are mostly in a minority in elite business
schools and afterwards can expect to
encounter glass ceilings and persistent
pay inequality in the traditional finance
and consultancy roles that attract highflying candidates.
Andrei Kirilenko, head of Imperial
Colleges Centre for Global Finance and
Technology, believes technology will
alter things a great deal for women, not
least in fintech. My feeling is that
women are particularly well positioned
to benefit from the fintech revolution,
he says. Glass ceilings will not be driven
by gender. They will be driven by what
you know.
Mr Kirilenkos optimism, however, is
not yet justified by current proportions
of women in large technology companies. An FT investigation in November
found that nearly 80 per cent of Googles
top management were male. Similar figures were reported at Facebook. At
Apple, women occupied nearly 30 per
cent of management roles.
Claire Cockerton, chief executive and

chairman of Entiq, an innovation consultancy, is the founder of Innovate


Finance, a UK industry body for the fintech industry. She says she has noted
increasing numbers of female developers and believes a particular driver for
increasing gender diversity in the tech
industry is data analytics.
If you can harness data analytics
then you are the most important person
in the room.
Ms Cockerton graduated from Imperial in 2010 with an MBA in innovation,
entrepreneurship and design and says
she was never going to be interested in
joining a bank or consultancy.
I felt that climbing the traditional
corporate ladder was long and arduous
and full of hurdles for women, she says.
Even in the cases where women did succeed, she adds, they had to put up with
being paid far less than their male counterparts. I think the tech industry
offers far greater mobility.
An Amazon spokesman confirmed
that globally each year the company
now hires hundreds of people with

MBAs. He said the online retailer was


targeting women in its recruitment
process and developing flexible working
guidelines that would help the effort.
For Claurelle Schoepke, an MBA and a
senior product manager at Amazon
Lending UK flexibility is important but
so is the unpredictable nature of her job.
Its fun to meet fighter pilots, economists and publishers all in the same
company, she says. Unlike some other
industries, career paths in new technology companies are not a straight line or
planned for you.
Non-linear careers and the promise of
flexible working patterns are part of the
attraction of the tech industry but some
people cite other reasons, too. Ms
Ambord says a new technology company such as BlaBlaCar is particularly
attractive to her because it enables her
to exert influence.
One of the reasons I joined BlaBlaCar
was because a lot of companies in the
technology industry are looking to
improve the status quo and they are
actually doing it, she says.

Tuesday 8 March 2016

FINANCIAL TIMES

Women in Business

Apps raise alarm over campus sexual assaults


Stay safe Universities
are under pressure as
one in four women
report being abused,
writes Maija Palmer

ancy Schwartzman survived a rape. One of the


things she remembers from
her ordeal is the sense of
bewilderment and powerlessness that struck after the event.
I remember having to make really
hard decisions. Should I stay where I
was with the rapist and get him to drive
me home in the morning, or go out into
an unfamiliar neighbourhood in the
early hours of the morning, which
would also be dangerous? she says.
Ten years later she built a mobile
phone app Circle of 6 that helps give
people better options should they find
themselves in a similar situation. Circle
of 6 allows users to pick six friends who
they can message quickly if they find
t h e m s e lve s i n a d a n g e ro u s
situation. The app allows them to send
pre-written messages such as: Come
and get me. I need help getting home
safely to this group, with just two
touches of the phone.
The app was one of the winners of the
2011 Apps Against Abuse challenge
launched by the White House in the US,
and has been adopted by a number of
universities in the US, including
Williams College, University of California, Los Angeles and the University of
Houston, for their students. The US Air
Force advises all of its first-year cadets
to use it.
Universities are looking at apps like
these that offer help to rape victims, as
they come under pressure to tackle an
epidemic of sexual violence on campuses. Nearly one in four college women
say they are sexually assaulted during
their time at university, according to a
report released late last year by the
Association of American Universities.
The first six weeks of college, between
student orientation and Thanksgiving
break in November known as the red
zone are especially dangerous for
first-year students.

App power: Gallaudet University students, faculty and staff use their phones as a light source during a protest against sexual violence in Washington DC Getty
Even the recent Academy Awards
acknowledged the problem of campus
rape, with Lady Gagas song Til It Happens To You from The Hunting Ground,
a documentary about campus rape
nominated for an Oscar. Joe Biden, US
vice-president, introduced the song at
the ceremony with a speech about the
need to end rape culture.
But, as The Hunting Ground powerfully
shows, many campus assaults go unreported, and even when they are, they
may not be handled well.

About 40 per cent of


US colleges failed to
investigate even one
sexual assault in five years

Genomics, virtual reality and


ethics: how progress will affect us
Futurology

Four key individuals shaping


the world of tomorrow offer
their insights into the most
significant developments.
By Sophie Clowes
Swift changes in technology from the
development of driverless cars and
robotics to the collection of increasingly
large amounts of data are
transforming the way we live.
We asked four distinguished thinkers
who are shaping that future through
their scientific and academic research,
writing and entrepreneurship, to
predict what aspects of this new
industrial revolution will affect us most.
Will women benefit or lose and which
ethical questions will we have to answer
most urgently?
Prof Paula
Hammond, head of
the department of
chemical
engineering at the
Massachusetts
Institute of
Technology. Her
research seeks to
deliver ant-cancer therapies in a more
targeted and therefore less destructive
manner. She says that gene editing to
address genetic disorders and cancer is a
key emerging technology. Genomics as
medicine is really where its at.
She cites Crispr, a gene-editing tool
that was named breakthrough of the
year 2015 by Science magazine, as an
example.
This technology will raise broad
ethical questions and prompt difficult
and personal questions for parents-tobe, especially mothers.
We need to ensure that enabling
science doesnt go beyond the concept of
helping mankind. From governments to
the general public, this is something we
all have to engage in, Prof Hammond
says.
Many women, including Martha Lane
Fox, the UK web pioneer and
government adviser, feel women need
to be part of creating technology if their
problems are to be addressed. Prof
Hammond takes a broader view,
believing that diversity in general is the
key. The diversity of the people I work

with not only changes the way we


approach problems but it changes the
kind of problems we approach.
Alec Ross, former
senior adviser for
innovation to
Hillary Clinton
when she was US
secretary of state,
and author of The
Industries of the
Future, believes
robotics, advanced life sciences, the
codification of money, cyber security
and big data will affect economic and
social change.
I think the commercialisation of
genomics will have as much impact on
our lives over the long-term as the rise of
the internet, he says.
We are going from a world which
today has 16bn internet-connected
devices, to one that in 2020 is going to
have 40bn, he adds.
However, the US and Europe risk
falling behind if the west continues to
cling to its outdated educational
institutions, Mr Ross warns.
People say government is slow to
change; nothing is slower to change than
education and this is really what puts
the working and middle classes in
Europe and the US in a disadvantaged
position.
In a world of increased artificial
intelligence and automation, we are
going to see enormous changes in
labour, with machines increasingly
replacing humans, says Mr Ross. But
some labour that will not be replaced
will grow in importance.
Here, Mr Ross believes those with
strengths traditionally seen as female
may hold an advantage. A workplace
where a greater premium is placed on
attributes like emotional intelligence
ultimately benefits women in the
executive ranks.
Amali de Alwis,
chief executive of
Code First: Girls, a
social enterprise
tackling the lack of
women in
technology and
entrepreneurship
through
community courses, networking events
and corporate activities, says: There is
no such thing as a non-tech industry
these days.

Ms de Alwis believes this is the year of


virtual and augmented reality. Pretty
much every single company is
launching some sort of virtual or
augmented reality headset, she notes,
pointing to the Oculus Rift, HTCs Vive
and Googles VR headset for
smartphones.
Houzz, a website and online
community dedicated to architecture
and design, wants to use virtual reality
to allow people to experience what is
about to be built. But the technologys
impact will reverberate far beyond
entertainment and interior design, with
applications for surgery and the
inspection of oil pipelines, Ms de Alwis
says.
In the US, immersive virtual reality
has already been shown to reduce pain
in burn victims. Could headsets in the
labour ward be next?
Personal passions for Ms de Alwis
include crypto currencies and
blockchain (the same decentralised
ledger book that underpins bitcoin).
But it has potential for use in
applications other than currencies, such
as Leanne Kemps Everledger, which
tracks diamonds, so making them far
more difficult to steal.
Prof Saeema
Ahmed-Kristensen,
deputy head of the
Dyson School of
Design Engineering
at Imperial College
London, says 3D
printing will enter
the mainstream
within the next five to 10 years. She also
cites big data as an emerging trend.
People are no longer designing
products but entire systems, she says.
But as technology such as 3D printers
becomes cheaper and more
sophisticated, it also provides people
with the power to do harm.
When we are educating designers
the ethics are very important, says Prof
Ahmed-Kristensen. She points to the
example of 3D printing being used to
create weapons.
Theres a need to understand how a
product fits into an infrastructure,
including ethics, social responsibility
and cultural sensitivity.
From a design and engineering
perspective, either we start with the
need or the technology, but we need to
understand the human aspect of it: how
women and men use the technology.

A 2014 report by the US Senate Subcommittee on Financial and Contracting Oversight, found that out of a sample of 440 colleges and universities, 40
per cent had failed to conduct a single
sexual violence investigation in the previous five years. Last month, Harvard
became the latest university to face a
lawsuit from a student over alleged mishandling of a sexual harassment case.
The threat of lawsuits is pushing
universities to take action, and apps are
some of the tools being considered,

alongside more conventional measures


such as education programmes and the
installation of emergency call boxes
around campus. Loyola University in
Chicago opted to create its own rape
assistance app in 2014, in response to
concerns about campus assaults. The
Here for You app is not focused on prevention, but at giving students information about the help and resources available to them if they are attacked.
It is about meeting students where
they are at, which is on their mobile

phones, says Stephanie Atella, Loyolas


Wellness Centre health educator.
Universities have also adopted apps
that link students directly to campus
police in order to help prevent attacks.
Lifeline Response, for example, allows
users to alert the police directly, giving
their geographic location, when they are
in trouble.
The company says the app, which has
been adopted by more than 100 universities, has so far prevented 25 assaults.
Other apps, such as EmergenSee, stamp
images captured by the user with the
date and time, so they can be used in a
criminal investigation.
Apps such as Guardly and the YWCAs
Safety Alert, for example, let off loud
noises when phones are shaken while at
the same time sending emails and texts
to notify friends.
Meanwhile bSafe uses GPS to allow
friends to track your movements
remotely when you are on a date or jogging alone. One of the simplest apps,
Kitestring, works off text messages,
sending notifications to check if you are
all right and notify your emergency contacts if you do not respond within a set
amount of time.
However, Katie Russell at Rape Crisis
UK urges caution with these apps. She
notes that women are often raped by
people they had trusted, and that drugs
and alcohol can impair a victims ability
to activate the alarm. We should be
careful about making too many claims.
They can potentially give a false sense of
security.
Loyolas Ms Atella says she is not
aware of anyone who has used an alarm
or prevention app to ward off an attack.
Ms Schwartzman does not dispute
this. Would Circle of 6 have helped me
on the night of my rape? she asks, It
would not have prevented it, but it
would have helped me afterwards.
One of the biggest benefits of antirape apps, she says, may be that they
raise awareness.
Focus groups at Williams College,
which was the first campus in the US to
pilot Circle of 6, indicated that there was
a change in overall student behaviour
following introduction of the app.
It sets a baseline of saying that abuse
is not OK, and that you should have
more trusted people in your network.

FINANCIAL TIMES

Tuesday 8 March 2016

Women in Business

Housework stymies wives worldwide


Domestic chores The
corporate success of
women often depends
on a supportive partner,
writes Gill Plimmer

Win a place on an
Executive MBA

n Melinda and Bill Gates annual


letter outlining their philanthropic
priorities Ms Gates highlighted the
unpaid housework and childcare
done by women across the world.
Unless things change, girls today will
spend hundreds of thousands more
hours than boys doing unpaid work simply because society assumes its their
responsibility, wrote Ms Gates, cofounder of the couples charitable foundation, in late February.
The problem is not just that household chores are dull, she points out.
It ends up robbing women of their
potential, Ms Gates said when quizzed
for further explanation. This is a societal issue that in 2016 shouldnt exist
any more.
Women across the world spend an
average of 4.5 hours a day on unpaid
work while men spend less than half
that much time, Ms Gates writes.
The burden of unpaid work falls most
heavily on women in poor countries.
But these domestic inequalities also
hurt women in developed countries.
Even in the very top echelons of society,
such imbalances are continuing to drag
the chances of women achieving their
ambitions of reaching the top of business organisations.
According to a study of US corporate
leaders, 25 women made up just
5 per cent of Fortune 500 chief executives in 2015 a tiny fraction of a cohort
overwhelmingly dominated by men.
The large majority of such leaders
are often already drawn from privileged
economic backgrounds, who can
afford to pay for nannies and housekeepers.
By the time they are CEOs they make
big bucks so they can afford nannies and
housekeepers, even if they are among
the relatively few who came from backgrounds that were not economically
privileged, says Richie Zweigenhaft,
professor of psychology at Guilford

Viral video:
Ariel advocates
that men pitch in
Procter & Gamble India

College in North Carolina, who conducted the research. Ethnicity adds


another layer to the problem. There has
been only one African-American
woman who has been a Fortune 500
chief executive Ursula Burns of
Xerox. Two of the 11 Asian-American
chief executives in 2015 were women
and there is yet to be a Latina Fortune
500 chief executive, says Prof Zweigenhaft. He adds that the gradual increase
in female chief executives has been glacial at best.
The study found the limited progress
that has taken place applies much more
to white women and recent South Asian
immigrants than to African Americans,
Latinas, or those from traditional AsianAmerican backgrounds such as China,
Japan or Korea.
One of the ironic effects of the
increase in women at the top may be
that the heyday of diversity has come
and gone, argues Prof Zweigenhaft.
Now that there have been some
women, African-American, Latina and
Asian-American CEOs, there may be
less, not more, pressure on boards to
consider and appoint them as CEOs.

Nearly all of the successful female


chief executives have been married and
most have had children.
We werent inside these marriages
but clearly some of these had husbands
who were willing to put their careers
second to their higher-powered partners, helping with the children and
household chores and showing a willingness to move, he adds.
Even having help with the entertaining can be an important to CEOs, who
have to do a lot of it.
According to a survey by Mumsnet,
the UK website, around two-thirds of
mothers felt that parenthood had
affected their careers. Nearly half of the
women who reported suffering from the
so-called motherhood penalty believed
that more should be done to address the
issues by employers and governments.
Most also felt that their male partners
careers had not been affected.
Companies are picking up on the
trend. A recent video advertising Ariel
washing powder in India received millions of views and has been highlighted
by women such as Sheryl Sandberg,
chief operating officer of Facebook and

The burden
of unpaid
work falls
most heavily
on women
in poor
countries

the author of Lean In, a book on womens


role in the workplace.
It depicts a father watching his young
professional daughter juggle a work call
while cooking, doing the laundry and
attending to her young son. Meanwhile,
his son-in-law watches television and
demands dinner. The advertisement
ends with the father writing his daughter a letter, apologising on behalf of
every dad who set the wrong example
and promising to do more to help her
mother with household chores.
In her book, Ms Sandberg says that
she had to resist falling into a traditional
role once she had children.
Although Ms Sandberg credited her
recently deceased husband, Dan Goldberg, with making everything possible and sharing tasks in the home, she
also acknowledged that for too many
women it remained a rarity.
Her advice: When it comes time to
settle down, find someone who wants an
equal partner. Someone who thinks
women should be smart, opinionated,
and ambitious. Someone who values
fairness, and expects or, even better,
wants to do his share in the home.

The FT today launches its fourth


annual Women in Business
competition in partnership with the
30% Club and Henley Business
School. The winner will be
announced at the FTs Women at
the Top summit on September 29
in London, to which all the finalists
will be invited. The prize is a fully
funded place on Henleys Executive
MBA course.
The competition is open to both
men and women who have
experience in the workplace either
in managing a team, running a
project or planning strategy at any
level. This years contest has two
compulsory sections: writing an
opinion piece and making a video.
In no more than 800 words,
answer: How will women shape the
future of business over the coming
ten years? The article should
consider factors such as
globalisation, technology and
evolving societal attitudes.
In a one minute video, answer:
Which words tend to be those used
to describe successful women
versus successful men? How does
the vocabulary differ? Does it
depend on whether a man or a
woman is speaking? Do the age,
level of education, nationality and
background of the speaker or
person being described matter?
What impact do the words used
have on the advancement of
women in the workplace? The
video can include several speakers.
It should be shot on a smartphone
and will only be judged on content
and the creativity displayed in
using this medium. Send entries to
mba@henley.ac.uk by May 3, 2016.
T&Cs can be found at
www.henley.ac.uk/30percentclub

Tuesday 8 March 2016

FINANCIAL TIMES

Women in Business

Is gender
neutrality the
way to shut
the Stem gap?

Science Outrage erupted on social media after a


boy won a prize aimed at girls. Neil Munshi reports

hen EDF Energy


launched its Pretty
Curious campaign in
October aimed at
inspiring girls curiosity about science, technology, engineering and maths, it probably did not
intend to highlight the debate about the
gender imbalance in the sciences. But
that is exactly what it did.
Critics lambasted the apparent irony
of using a stereotype to name a programme aimed at fighting stereotypes.
I hate this presumption that Stem
(science, technology, engineering, and
mathematics) stuff needs to be girlified to appeal to women, wrote Emily
Schoerning, director of community
organising and research at the National
Center for Science Education in the US,
adding that it draws attention to our
gender over and above our achievements.
Last month, EDF announced the win-

ner of its Pretty Curious science challenge: a 13-year-old boy. The company
explained that, while the campaign was
aimed at girls, the competition was
gender-neutral. Another social media
firestorm ensued.
Sue Black, a British scientist, took to
Twitter in response: Id love to know:
how is the winning entry seen by EDF to
encourage girls into Stem?
Women are under-represented in
many professional Stem fields. According to the US census bureau, male science and engineering graduates are
twice as likely to be employed in a Stem
occupation than female ones. The commerce department found women represent roughly a quarter of the Stem workforce; in the UK, the figure is 14.4 per
cent. Countless studies illustrate how
unconscious and institutional biases,
along with societal and familial pressures, inhibit how women scientists are
perceived, encouraged and promoted.

Not intimidated:
Olivia Hallisey,
2015 Google
Science Fair
prize winner

Young women are narrowing the gap


in participation in mathematics and
science courses, according to the US
department of education. But the question remains: should girls be singled out
and encouraged to pursue and stick
with Stem careers, or is the best route to
equality gender-blind?
At 15, Ciara Judge was joint winner of
the 2014 Google science fair for a project
that studied how bacteria could boost
low crop yields and fight world hunger.
The Irish teenager offered a point of
view shared, in particular, by some of
her fellow young female peers. She
wrote on her blog: To those criticising
the idea that a contest to promote
females in Stem would have a male winner, I ask: is allowing a girl to win by
default really a way to promote girls in
Stem? There is no worse feeling on earth
than feeling like your success is because
of your gender.
Nicole Ticea, 17, won the Intel

The automated future is nothing


to fear it belongs to women
GUEST COMMENT

Natalia
Brzezinski
The machines are coming, or so we are
led to believe. An image of a roboticlooking crowd of delegates wearing
virtual reality headsets at the Mobile
World Congress caused quite a stir last
month.
Are we marching toward a soulless,
robotic future, the stuff of science
fiction?
Rising fears about automation, and a
lament for the end of an unplugged
society, is dominating the discussion
around the future of work.
But the future will not be owned by
machines, it will be owned by great
storytellers.
Automation and technology will work
hand-in-hand with human innovation
humanity will be the purpose and
narrative behind the machine and
reflect a new career world of constant
entrepreneurialism and
transformation, both digitally and
physically.
I believe women will be leading this
future, head first and heart first.
In June 2012 Forbes Magazine hailed
entrepreneurship as the new womens
movement. The writer and
entrepreneur Natalie MacNeil says
women have been starting
businesses at a higher
rate than men for
the past 20 years
and are
projected to
generate
more than

half of the 9.72m new small-business


jobs expected to be created by 2018 in
the US.
Women own 29 per cent of private US
businesses, employing 16 per cent of the
nations workforce, the National
Womens Business Council says.
I see encouraging signs that
automation will help female
entrepreneurs to build leaner, more
digital and flexible businesses, which
are our niches already.
Women will take traditionally male
jobs and create new ones.
The Steve Jobs of tomorrow will not
require endless degrees, old boys
networks or pedigrees. Most
commentators predict that the jobs our
children will be doing in the future have
yet to be created. So how can these
traditional structures survive?

Women are reshaping the


workplace into one
steeped in collaboration
Our children will require grit,
unfettered hearts, open minds and a
willingness to constantly transform.
These are qualities that underscore the
definition of womanhood we are
always changing as girls, women,
mothers, redefining our roles and
juggling them all in a way that is the
essence of innovation.
Many entrepreneurs cite the solving
of a problem as the genesis of their
business plan: women all over the
world are looking at the
workplace, realising it
does not work in their
favour, and reshaping
it into one that is
attuned to modern

values steeped in collaboration,


creativity and transparency, and the
modus operandi of the modern womans
life. Women look at the world
differently, and different is good.
One thing holding us back is what has
been at the heart of most mens success:
a willingness to put ourselves out there,
take a controversial position and make a
stand.
I believe in equality, but being equal
does not have to mean being the same.
Nor does it mean staying quiet. If we
cannot speak up for ourselves, chances
are no one else will believe in us, or
speak up for us.
We are moving in the right direction.
But there are still too few countries in
the world that work to empower both
men and women equally, and give them
equal responsibilities.
We will need to innovate, not only
with machines and technologies, but
also in our societies to seize the
opportunities of the future.
Sweden is one place that has forged a
future around gender equality and
innovation. It is a start-up centre, a
spawning ground for tech companies
valued at $1bn or more and has some of
the highest percentages of womens full
participation in the workforce, equal
pay and nearly equal representations of
women in parliament.
One thing the world can learn from
the Nordic model is how gender
equality, pure tech leadership and a
focus on the future can exist together.
As the chief executive of Symposium
Stockholm, a week-long festival of ideas,
fashion, music and tech that takes place
in June, I work every day to bring people
together around these transcendent,
futuristic values.
This year, our main event will
highlight how innovating societies tend
to be more open, and gender equality
creates exponential creativity.
As an entrepreneur, I cry on
aeroplanes when I see my daughters
face on Skype, but I also sit in
boardrooms and have my voice heard
on inclusion and social consciousness. I
raise my voice for my daughter, and all
of our daughters.
The future wants to thrust machines
on us. We must be machine-like in our
perseverance. Do not live a life set out by
others human or artificial.
Natalia Brzezinski is chief executive of
Symposium Stockholm and hosts the
Stand Out! podcast

Stem
education
should be
consistent
and
mandatory
for both
genders in
all schools
Nicole Ticea

Foundations Young Scientist award last


year for developing a cheap, portable
HIV testing device that delivers results
within an hour. She says she did not
notice gender imbalance in her pursuit
of the sciences, in part because she
attended an all-girls school.
She says: I dont know how effective
these programmes are that target only
young women solely for the fact that
they are young women. I think it should
be something that is consistent and
mandatory for both genders in all
schools.
If youre not highlighting the distinction between men and women . . . if
youre just having everyone do science,
then I think thats the only way we can
overcome this inequality.
Seventeen-year-old Olivia Hallisey
won the $50,000 top Google Science Fair
prize last year after developing a lowcost, rapid detection Ebola test. She
takes a more neutral view.

Ms Hallisey says her school in Connecticut does a really good job of making it gender-blind, and that the scientific research class in which she developed the Ebola test is roughly split
between boys and girls. I think thats
really important since there are so
many girls it helps, because sometimes
girls get intimidated when they dont see
other girls.
Theresa Rohr-Kirchgraber, head of
the American Medical Womens Association, says a lot of women feel pushing
for equality is old school stuff even
my daughter says were all equal now.
Well, no, were not. Were not making
as much, we dont have the same opportunities, there are times when someone
looks at you and says, youre a cute girl,
I dont think you can do it it doesnt
matter that its not a stated fact, its
more subtle.
It isnt until it hits you in the face that
you realise it.

FINANCIAL TIMES

Tuesday 8 March 2016

Women in Business
Interview Dame Steve Shirley
The views of the computing pioneer will annoy some,
but they are difficult to ignore, writes Rhymer Rigby

Dame Stephanie Shirley


Rosie Hallam

Now theres
nothing holding
women back
havent got a lot of patience with
women who complain, says
Dame Stephanie Shirley.
Theres nothing holding women
back now except our own avoidance of trauma and hard work.
Young women today have the choice
over whether they want a vigorous professional career or whether they want to
float around a bit more and enjoy life.
It is views like this that do not always
endear Dame Steve Shirley to the current generation of feminists and she
cheerfully admits she knows they can
annoy people. But she is difficult to
ignore, because she is uniquely well
placed to talk about women in the workplace and in technology.
Dame Stephanie is 82 and it is perhaps
best to call her a female pioneer,
because she rejects the feminist term.
She was born in 1933 in Dortmund, Germany, to a Jewish father and a gentile
Austrian mother. She left them behind
when, aged 5, she was moved to the UK
as a Kindertransport refugee. She was
raised by foster parents on the Midlands
and Welsh borders, where she discovered a flair for maths. She decided not to

go to university,
joining instead
the Post Office
Research station
in Dollis Hill, London. Here she
worked on computers and took a
maths degree at night
school.
In 1962, she founded
a software company
called Freelance Programmers, which she ran
from her dining room table.
Computers came along
when I was realising that
maths wasnt for me, she
explains. The industry was wide open
for anyone to contribute.
But it was not just a company, it was a
calling. I set up a software house
because Id hit the glass ceiling. I was
passionate about not being patronised
and became very assertive, although
Ive never been a feminist.
The company was radical for its time.
Its employees were nearly all women
and they mostly worked from home.

Academia develops technology


to boost entrepreneurial talents
women, says Mr Hanak, who is also
board chair at the International Business Innovation Association.
A physical space remains important.
For example, university researchers
creating biomedical spin-off companies
need sophisticated equipment and laboratory space.
But the requirements for digital startups are simpler. They need a good connection, a desk and very important
a coffee machine, says Celia Caulcott,
vice-provost for enterprise at University
College London (UCL).
Meanwhile, universities also recognise the need for other forms of support.
While stressing the value of mentors,
many in academia point to the importance of role models who can inspire
women to follow in their path.
This means ensuring a gender balance
exists in the make up of faculty and
guest speakers. It sounds trivial, but
when women enter the classroom its
very important that they see people like
them, says Fiona Murray, associate
dean of innovation at MIT Sloan School
of Management.
Perhaps the most crucial element is
securing the funding that start-ups need
to become viable. Some institutions are
providing seed funding to students and
faculty start-ups through competitions.
For example, UCLs Bright Ideas Awards
help fill a funding gap for companies
that have viable ideas but are not yet
ready to seek venture capital.
While they can tap into such funding
at university, it can be hard for female
entrepreneurs to secure venture capital
in an industry that is heavily male
dominated.
Here, academic institutions have
another powerful tool to offer female
entrepreneurs. Through their alumni
base, they have access to experienced
women entrepreneurs and business-

women who are interested in advancing


the funding of companies for women,
says Mr Hanak.
He also points to the rise outside
academia of investors providing seed
funding to female-led technology startups. Ultimately, we hope to see universities doing something similar.
App design challenges also known
as appathons are an increasingly
popular way to support technology
development and entrepreneurship in
universities.
For example, UCL backs the Rosalind
Franklin Appathon, named after the
pioneering British biophysicist. The
competition promotes female leaders in
science, technology, engineering, maths
and medicine.
The first challenge, open to women
and men, was to develop mobile apps to
encourage women in these subjects.
The winners were Ahrani Logan and
Brett Haase, who developed a gaming
app for boys and girls designed to
challenge cultural stereotypes.
The winners of the second challenge
recognising women developers of
apps for research, social benefit and
enterprise was the team of Pam
Sonnenberg, reader in infectious disease epidemiology at UCL, which developed a web app that allows people to test
themselves for chlamydia.
UCL supported the appathon, which
took place in February, by offering its
networks, marketing resources, and
mentors.
Rachel McKendry, a UCL professor
instrumental in setting up the event,
says academia should support such
activities.
All the bright young students who
become leaders come through universities, she says. So we have a key role to
play in changing perceptions of women
in science.

Sarah Gordon
Business editor

Neil Munshi
FirstFT writer

Steven Bird
Designer

Maija Palmer
Digital editor, Special Reports

Tim Smedley, Sara Calian


Sarah Murray, Rhymer Rigby
and Sophie Clowes
Freelance writers

Alan Knox
Picture editor

Education

Coaching, mentoring and


fundraising skills encourage
women to strike out alone,
says Sarah Murray
Women in the US state of Indiana are
receiving help to succeed in technology
and entrepreneurship with the assistance of the WomenIN incubator, which
was launched in October.
WomenIN is one of several projects
emerging from academia to help
would-be entrepreneurs. It is backed by
the Purdue Foundry, which helps students, faculty and alumni at the eponymous university to monetise ideas.
Over the past 10 years, the distinction between the types of support have
blurred in a healthy way, says John
Hanak, the Foundrys director of venture capital and funding resources.
Business incubation has taken on a
larger meaning, which is anything thats
providing support to entrepreneurs.
Dhruv Bhatli, co-founder of UBI Global, which ranks more than 400 incubation programmes in more than 70 countries, agrees: In the old days, incubation programmes had buildings, infrastructure and labs.
Its moving to a service model, with
coaching, mentoring and skill development. So the infrastructure becomes
less relevant and the coaching and mentoring become more important.
In Indiana, WomenIN members
receive some of both. They can participate in workshops online and use educational tools, while entrepreneur-inresidence assistance and quarterly networking events are also provided.
Its really a decision to be deliberate
in terms of providing support for

Contributors

Gill Plimmer
Reporter
Emma Boyde
Writer

Carola Hoyos
Editor, Women in Business and Executive
Appointments

For advertising details: Peres Kagbala at


peres.kagbala@ft.com or +44 (0) 20 7
873 4909 or your usual FT rep.
Advertisers have no influence on articles

The programs were written on paper


and sent in by letter.
Dame Stephanie was determined to
give women, particularly those with
children, the chance to work. The business was revolutionary in other ways:
We were one of the first networked
companies. We used phones and we
used peoples home television sets. You
can imagine how popular that was.
Of course, she had to deal with the
attitudes of the time and one legacy of
this is her nickname, Steve. She used it
in letters to clients who did not reply to
Stephanie. She received a far better
response rate if clients thought they
were dealing with a man.
The company, which she owned in its
entirety, was floated in the 1990s and
made her very rich. With a net worth of
$200m, she was at one point the 11th
wealthiest woman in the UK. She shared
the money with staff, giving them a
quarter of shares and at the IPO, creating 70 millionaires. But all this is history. Dame Stephanie is now into her
third decade of retirement, having
stopped work in 1993.
However, like many entrepreneurs she cannot really stop. Even
now, her productivity puts many
people half her age to shame.
Im a workaholic and cant
imagine doing anything else,
she says. I suppose Im a
role model: look, your
granny can still be working.
Over the course of an
hour-long conversation, our topics range
from the tech-enabled, agile workforce
and the use of robots
to teach the severely
autistic to interact, to
the spread of Islamophobia and her Apple
Watch.
She is funny and aphoristic. Describing what
might now be called intersectionality (a critical tool
that says oppressive behaviours such as sexism and racism are interconnected), she
explains that she employed
one of the few black directors in
the City of London. It was the mid80s and you could hear the whispers:
Look, Steves not with her husband . . . shes with a black guy.

These days, she sees herself as


a philanthropist, something that has
its roots in her childhood the Kindertransport and her life with a foster
family meant that she had been dependent on the kindness of strangers. Moreover, she cannot bear the idea of a fortune sitting idle, so she has given the
vast majority of her wealth away.
Money that does no work has a sort of
obscenity to it.
Most of her efforts are now focused on
autism research. Her only son was
severely autistic and died in 1998 as a
result of an autism-related fit. I fund
medical research and Im working with
scientists, so Im having a wonderful
time, she says.
The sums she donates are typically
100,000, but the biggest was 20m, so
she wants to ensure that she gives wisely
and strategically. I remember costing
one project and realising it was going to
run to 400m, which was way out of my
reach. We are now doing the work, but
were piggybacking on something the
Gates Foundation started.

As Steve she received a


better response because
clients thought they were
dealing with a man
You should, she adds, start charities
with a view to walking away when they
are sustainable. You want to have an
exit strategy. Reaching sustainability is
a bit like an initial public offering for
good causes.
Towards the end of the interview, I
press her again on the barriers women
still face in technology and she gives a
similarly brief answer that there are
not many and then we are back to
talking about fingerprint recognition
and how brilliant it is in helping severely
autistic people.
Theyre using this technology on
doors, because it means these people
they dont have keys to use. It improves
the quality of their life, but also reduces
the care cost.
This, I think, is the reason for what
some view as her disdain for modern
female workplace concerns.
Compared with the mountains her
generation faced, todays women are
griping about molehills. All big battles
have been fought and won, she feels,
and there are more important things to
worry about.