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MONDAY 18 FEBRUARY 2019 WORLD BUSINESS NEWSPAPER EUROPE

Rebuilding Syria Rude awakenings Brexit opportunity

Assad’s regime wins back a Delivering harsh truths at work How UK should react to a no-deal
country in ruins — BIG READ, PAGE 7 is a lost art — PILITA CLARK, PAGE 12 scenario — WOLFGANG MÜNCHAU, PAGE 9

India vows to Briefing

hit back over i Barclays blow as Tiger Global sells up
The New York-based hedge fund that was one of the
Kashmir blast biggest investors in the UK bank has sold its entire
holding in a blow to chief executive Jes Staley’s bid
to win support for his turnround strategy.— PAGE 13
Indian mourners take part in a candle-
light vigil yesterday for the 44 police- i UK push for Japan trade talks falters
men killed in a car-bomb attack on a Britain’s latest attempt to seal a quick post-Brexit
paramilitary convoy in Kashmir on deal has backfired after officials in Tokyo reacted
Friday. with dismay at a UK letter that insisted “time is of
Narendra Modi, India’s prime minis- the essence”.— PAGE 2; WOLFGANG MÜNCHAU, PAGE 9
ter, has promised retribution against
Pakistan, which he blames for the i VW issues carbon ultimatum to suppliers
attack, the deadliest in Kashmir’s three- The German passenger marque has warned its
decades old separatist insurgency. 40,000 component makers that they can help cut
“The fire that is raging in your hearts emissions across the supply chain or risk losing
is in my heart too,” Mr Modi told a crowd business with the group.— PAGE 13; GREEN DEAL, PAGE 4
in Bihar yesterday.
Indian security forces are reported to i Altmaier backs ‘technology sovereignty’
be weighing potential responses, while German economy minister
Pakistani troops are on a heightened Peter Altmaier has told the FT
state of alert along the de facto border that Paris and Berlin begin
between the nuclear-armed nations. work this week on an industrial
Options weighed page 6 strategy aimed at fending off
Diptendu Dutta/AFP/Getty
US and Chinese rivals.— PAGE 3

i Trump pick for UN envoy pulls out

Huawei’s green light from Britain

Heather Nauert, the ex-Fox News anchor tapped by
the president as ambassador, has withdrawn herself
from consideration, leaving the high-profile role
vacant following Nikki Haley’s departure.— PAGE 2

i China takes lead in legal technology

dents US drive for global 5G ban Beijing’s push to address a shortage of lawyers has
given it the lead in “lawtech”, where trials are
streamed live and claimants file cases, submit
evidence and resolve disputes online.— PAGE 14

i Climate block on Australian coal project

3 UK says risks can be limited 3 Washington sees China threat 3 Example to rest of Europe
DEMETRI SEVASTOPULO — WASHINGTON
DAVID BOND — MUNICH
US efforts to persuade allies to ban Hua-
wei from 5G networks have suffered a
blow after the British government con-
cluded that it can mitigate the risk from
using equipment from the Chinese sup-
plier in high-speed telecoms systems.
The UK National Cyber Security Cen-
tre has determined that there are ways
to limit the risks from using Huawei in
future 5G ultra-fast networks, according
to two people familiar with the conclu-
sion, which has not been made public.
The finding comes despite stepped-up
US efforts to persuade countries to bar
Huawei from their networks on the
basis that it could help China conduct
espionage or cyber sabotage. The US
National Security Agency has been
The country’s mining sector has been thrown into
turmoil after a court ruling that cited climate
change as a reason for halting Gloucester Resources’
sharing more information with allies coms equipment is too high. American from using Huawei gear in 5G networks. bid to develop a mine in New South Wales.— PAGE 16
and partners to underscore the risks, officials have also made the case that, It also comes as President Donald
but several European countries, includ- although there may be no evidence of Trump is considering issuing an execu-
ing the UK and Germany, have not been nefarious activity so far, Huawei could tive order that would in effect bar US Datawatch
convinced that a ban is warranted. use malign software updates to facilitate companies from using Huawei. One per-
One person familiar with the matter espionage. son familiar with the order said it would
said the British conclusion would “carry Robert Hannigan, former head of The US believes be written in a way that was “company Wedding presence Lithuania is the
great weight” with European leaders, GCHQ, the UK signals intelligence 5G will be so fast and country agnostic”. Number of marriages per 1,000 EU country with
since the UK has access to highly sensi- agency, wrote in the Financial Times and have so Speaking at the Munich Security Con- inhabitants, 2017 EU average the highest
marriage rate,
tive US intelligence via its membership last week that the NCSC had “never many military ference on Saturday, US vice-president Lithuania at 7.5 per 1,000
of the Five Eyes intelligence sharing net- found evidence of malicious Chinese applications Mike Pence said Huawei posed a threat Denmark inhabitants,
work. Other nations could therefore state cyber activity through Huawei” that the security because of a law that requires telecoms Sweden compared with a
make the argument that if the UK is con- and that any “assertions that any Chi- risk in using companies to share data with the Chi- Poland European average
fident it can mitigate the risks, they too nese technology in any part of a 5G net- Chinese kit is nese government. Germany of 4.3. Marriage
would be “acting in a prudent manner” work represents an unacceptable risk too high Alex Younger, head of MI6, the UK UK rates have
by allowing Chinese providers to supply are nonsense”. secret intelligence service, indicated last France declined across
their 5G networks, the person added. The UK conclusion stands in contrast week that Britain might take a softer Italy the board. In 1970,
The US argues that 5G will be so fast to those in Australia and New Zealand — line on Huawei than the US, saying the 0 2 4 6 8 the EU average
and have so many military applications also Five Eyes members — which last issue was too complex simply to ban the Source: Eurostat was 7.9 per 1,000
that the risk of using any Chinese tele- year banned telecoms providers company.

Berlin strains alliance with London as

Saudi arms ban frustrates BAE deal
GUY CHAZAN — MUNICH causing millions of pounds of damage.” At issue is Berlin’s unilateral decision
SYLVIA PFEIFER — LONDON British insiders confirmed the gov- last October to suspend arms sales to its
ernment was working with BAE to biggest customer after Algeria. The ban
A German ban on arms exports to resolve the issue. The Saudi air force has caused dismay among many of its allies
Saudi Arabia imposed after the murder access to spare parts for its 72 jets but because it covers all weapons that
Caracas challenger seeks of Jamal Khashoggi has strained diplo- operational readiness could be affected include parts made in Germany.
matic ties with London amid concerns if the situation persisted, they said. As well as the Typhoons, the German
ties with Russia and China it would prevent BAE Systems supply- The problem highlights a lack of una- export ban has also affected the supply
Interview i PAGE 4 ing parts for Riyadh’s Eurofighters. nimity in Europe on rules for arms of Meteor long-range air-to-air missiles
Britain’s biggest defence company is the exports and risks recent efforts to to Saudi Arabia. The Meteor is assem-
lead industrial partner for the pan- deepen defence co-operation, which bled by MBDA, a joint venture of Airbus,
Austria €3.80 Macedonia Den220 European Eurofighter consortium in Angela Merkel and Emmanuel Macron BAE Systems and Leonardo, while its
Bahrain Din1.8 Malta €3.60
Belgium €3.80 Morocco Dh45 Saudi Arabia and is responsible for have identified as a key objective. propulsion system and warheads are
Bulgaria
Croatia
Lev7.50
Kn29
Netherlands
Norway
€3.80
NKr35
ensuring the maintenance and support The German chancellor told the manufactured in Germany.
Cyprus €3.60 Oman OR1.60 of the kingdom’s Typhoon jets. The Munich Security Conference on Satur- The left-of-centre Social Democrats,
Czech Rep Kc105 Pakistan Rupee350
Denmark DKr37 Poland Zl 20 move by Berlin has disrupted supply day that without a “common arms the junior partner in Ms Merkel’s grand
Egypt
Finland
E£42
€4.50
Portugal
Qatar
€3.60
QR15
lines and caused consternation within export culture” Europe would “struggle coalition, have traditionally been
France €3.80 Romania Ron17 the consortium. to develop joint weapons systems”. She uneasy about arms exports. The coali-
Germany €3.80 Russia €5.00
Gibraltar £2.70 Serbia NewD420 “We’ll soon get to the point where the added: “You can’t talk about a European tion agreement negotiated between the
Greece
Hungary
€3.60
Ft1090
Slovak Rep
Slovenia
€3.60
€3.50
Saudis can’t fly their planes any more,” army and . . . developing weapons SPD and Ms Merkel’s CDU last year, for
India Rup220 Spain €3.60 said a person familiar with the matter. together if you’re not prepared to pur- example, included a pledge to ban arms
Italy €3.60 Sweden SKr39
Latvia €6.99 Switzerland SFr6.00 “Someone’s going to have to pay. This is sue a common arms export policy.” sales to parties in Yemen’s civil war.
Lebanon LBP7500 Tunisia Din7.50
Lithuania €4.30 Turkey TL19
Luxembourg €3.80 UAE Dh17.00

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 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
2 ★ FINANCIAL TIMES Monday 18 February 2019

INTERNATIONAL

Diplomacy Africa

UK-Japan trade talks sour after letter slip Nigerians

suspicious
Tokyo interprets plea for result of a letter in which Jeremy Hunt,
the UK foreign secretary, and Liam Fox,
an accusation of foot-dragging. People
familiar with the situation said that
after its scheduled departure from the
EU on March 29 is becoming increas-
that there had been growing frustration
with the British side. Although Japan
of election
speed in discussions as
allegation of foot-dragging
international trade secretary, told their
Japanese counterparts that “time is of
Japan was finalising an appropriate
response a week after Mr Hunt and Mr
ingly clear to the Japanese public.
Japan’s state broadcaster NHK
acknowledges that progress has natu-
rally slowed while their UK counter-
integrity
LEO LEWIS — TOKYO
the essence” and said flexibility would
be required on both sides.
Although UK officials insisted that the
Fox’s letter had landed. devoted part of a show on Brexit to
exhibiting a “Brexit survival pack” of
dried foods and other provisions.
parts have been pulled into prepara-
tions for a no-deal Brexit, officials say
there have been several occasions when
after delay
HENRY MANCE — LONDON
JAMIE SMYTH — SYDNEY letter, sent on February 8, had been
Officials believe that tone Australia provided a measure of relief British negotiators have come to the
The UK’s latest attempt to persuade couched in standard diplomatic lan- reflected high-handed for the UK when Simon Birmingham, table without the necessary specialists NEIL MUNSHI — KANO
Japan to agree a post-Brexit trade deal guage, Japanese officials believe that it trade minister, said Canberra was will- to take negotiations forward.
has backfired after officials in Tokyo reflected an increasingly high-handed
approach and considered ing to sign a fast-tracked trade deal with Historically cordial ties between the
Nigerians were left to wonder how the
last-minute decision to delay elections
reacted with dismay at British tactics. approach from Britain. In response, offi- calling off meeting London in the event of a no-deal Brexit, UK and Tokyo mean Shinzo Abe, Japan’s
would affect the integrity of the ballot,
Theresa May’s government is already cials in Tokyo briefly considered cancel- adding: “I would absolutely hope that prime minister, has publicly expressed
as the electoral commission outlined
battling to mend relations with China, ling a round of trade talks this week. Although Japanese businesses — par- we would conclude negotiations this support for Theresa May’s exit deal with
plans to ensure a successful contest
after Beijing cancelled a trade meeting In one section, the letter said that “we ticularly in the automotive and financial year.” But Mr Birmingham poured cold Brussels. On a personal level, Mrs May
next Saturday.
with Philip Hammond, the chancellor, are committed to [speed and flexibility] services sectors — have spent two years water on Britain’s ambition to join the has seen Mr Abe as her closest counter-
in protest at a UK pledge to send an air- and hope that Japan is too” — a line fretting over a hard Brexit or a no-deal Trans-Pacific Partnership regional bloc. part in the G7. The UK wants a deal to The Independent National Electoral
craft carrier to the Pacific. which, according to people close to Japa- scenario, the UK’s desperation to have Japanese officials familiar with put in place of the EU-Japan trade deal, Commission announced its decision to
Relations with Japan have soured as a nese trade officials, was read in Tokyo as trade deals in place before or shortly Tokyo’s bilateral talks with the UK said which came into force on February 1. postpone the presidential and national
assembly elections five hours before
polls were meant to open, catching the
country of nearly 200m by surprise.
Governor elections scheduled for March
Annual conference. Discord 2 were also pushed back a week.
Mahmood Yakubu, chairman of Inec,

Munich security get-together ends in division said on Saturday that bad weather, logis-
tical challenges and fires at three facili-
ties were to blame. He outlined a plan he
said would ensure the integrity and
timeliness of the contest that involved
the storage of ballot materials in central
Trump’s isolationist policies bank vaults in each state and redeploy-
ing them by midweek.
force Europe to confront But Chris Kwaja, a senior adviser in
Nigeria for the United States Institute of
issues that will not go away Peace, said the eleventh-hour decision
raised doubts about the credibility of
MICHAEL PEEL, DAVID BOND the contest, particularly after state-level
AND GUY CHAZAN — BERLIN
elections late last year were marred by
The Munich security conference ended irregularities.
in a mood of discord and division “Nigerians are going into the elections
between the US and its allies yesterday. next week with very huge suspicions
That mood was apparent on Saturday about the capacity of Inec to conduct
when Angela Merkel, the German chan- credible elections,” he said, noting the
cellor, won acclaim for her critique on commission’s repeated reassurances
strains in US-European relations, and before Saturday that it was prepared.
Mike Pence, US vice-president, drew a “There’s this doubt among Nigerians
tepid reaction when he lauded Donald and many stakeholders that because of
Trump’s isolationist foreign policy. the history of Inec with inconclusive
Senior officials from other powers, elections there is a potential that this
including China, Russia and Iran, gave election will also be inconclusive.”
trenchant addresses to the 56-year-old Mr Kwaja said members of the ruling
annual gathering of heads of state and and main opposition parties raised con-
government, military and intelligence cerns about ballot integrity at a stake-
chiefs. Debate was intensive in side- holders’ meeting convened by Inec on
events and bilateral meetings behind Saturday that he attended.
the scenes in the warren-like Bayer- President Muhammadu Buhari, who
ischer Hof Hotel. Here are the FT’s main is seeking a second term, has promised
takeaways: free and fair elections. Both the presi-
dent and Atiku Abubakar, his chief
Fall into line, Europe opponent and former vice-president,
Mr Pence’s speech capped a week of expressed dismay at the decision, but
sharp US rhetoric, notably in a meeting called for calm. Millions of Nigerians
in Warsaw where Washington tried to have travelled to their hometowns to
win over allies against Iran. vote, at great personal cost, and the
The discourse went beyond telling delay could force many to return to
allies to “live with” Mr Trump’s hardline where they work, depressing turnout.
approach” to what Constanze Stelzen- Poles apart: that there is an openness to the world in missiles control treaty, signed in 1987 by ‘Europe is Jeffrey, US envoy to Syria, said that Many analysts believe a high turnout
müller, a senior fellow at the Brookings Mike Pence and Congress”. the US and the Soviet Union, were evi- the drawdown would not be “abrupt”. would favour Mr Abubakar, who
Institution, termed, “you’d better join Angela Merkel
Europe needs to sort itself out
dent. Ursula von der Leyen, German going round America wants its allies to fill the gap repeated his accusation that Mr Buhari
us, or else”. Mr Pence, US deputy com- offered different defence minister, warned against a in circles but a meeting of the coalition against Isis was trying to rig the election. The presi-
mander-in-chief, also called on Europe visions at the For all the tutting at the White House, return to the “tit-for-tat actions of the on Friday ended with little local enthu- dent’s side said the delay was an opposi-
to back the US on Venezuela and Chi- Munich event there was pessimism about Europe’s 1980s” when the US and the Soviet and is siasm. “No one wants to be the tethered tion ploy. Mr Yakubu of Inec said the
nese cyber security risks. One adviser to Christof Stache/AFP/Getty
appetite or ability to fill a security void Union deployed nuclear weapons in even more goat,” said one European official. delay had nothing to do with politics.
a senior European official said the left by the US. Talks on the margins laid Europe. Ms Merkel said any attempt to Mohammad Javad Zarif, Iran’s foreign Hussain Ismail, 29, a market trader in
speech was “obscene”. bare the obstacles of resource and politi- revive the treaty should involve Beijing, divided minister, denounced Mr Pence’s “arro- Kano, said: “Probably, frankly, the pres-
cal challenges to greater co-operation, which might “have some reservations”. than a gant” demands that Europe quit the idency are not ready to conduct free and
The US is not just Trump not least the lack of common EU arms The next big fear is that the New Start international Iran nuclear deal, but fair elections, because they know that
The three-day conference offered a dif- export rules. Sauli Niinistö, Finnish treaty between Russia and the US might year ago’ chided the EU for what he said were its they would have lost.
ferent America. Joe Biden, former vice- president, lamented the lack of “hard be next to fall apart. The pact, which inadequate efforts to save the pact by “So they are extending it so they have
president, and a congressional delega- strength” to bolster its influence in caps the nuclear arsenals each can hold,
Norbert safeguarding European-Iranian trade. more time to rig it and keep people from
Röttgen
tion including Nancy Pelosi, House world security. Norbert Röttgen, head of expires in 2021. Sergei Ryabkov, Rus- “Europe needs to be willing to get wet if voting . . .[and] if Buhari wins [on Feb-
speaker, held out the prospect of a the Bundestag’s foreign affairs commit- sian deputy foreign minister, said there it wants to swim against the dangerous ruary 23] definitely there was some rig-
return to co-operation under the Demo- tee, said Europe was “going round in was a risk it would “just fade away”. tide of US unilateralism,” Mr Zarif said. ging and there will be protest.”
crat-led Congress or a new administra- circles” and was “even more divided In 2011, more than 800 people died in
tion. The EU, branded a foe by Mr than a year ago”. He added: “It would Middle Eastern flashpoints Post-Brexit sabre-rattling outbreaks of political violence that fol-
Trump, was “critical to security and sta- like to shape the international discourse The US is pressing Europe to invest Gavin Williamson, UK defence secre- lowed an election that was also delayed
bility”, he said. David Miliband, a but it won’t assume any power.” more in the anti-Isis fight and take back tary, accused the Russians of using secu- by a week because of logistical and secu-
former British foreign secretary who is 800 foreign-born fighters. With the rity proxies so they could deny “having rity issues.
now president of the International Res- Arms control or the lack of it caliphate all but gone, Washington has blood on their hands”. Sergei Lavrov, In 2015, an election was delayed by six
cue Committee, said that many people Worries about the demise of the Inter- tried to ease concerns over Mr Trump’s Russian foreign minister, dismissed Mr weeks because of the Boko Haram
were “hanging a lot of hope on the idea mediate-range Nuclear Forces ballistic plans to withdraw 2,000 troops. James Williamson as the “minister for war”. jihadist insurgency.

Succession Air quality

MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription Trump’s choice to take UN Kitchen pollutants can be as
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
ambassador role withdraws bad for health as city smog
Trump vs the Valley A Five Star plan? Dear Don...
Tech titans need to minimise Italy’s populists are trying to woo May’s first stab at the break-up
political risk — GILLIAN TETT, PAGE 13 the poor — BIG READ, PAGE 11 letter — ROBERT SHRIMSLEY, PAGE 12

HMRC warns Lloyd’s of Brussels Insurance market

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

customs risks THE END

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

employed a foreign-born nanny who is recognised as a serious public health

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

being swamped
equity market rally to hunt for bargains across the

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

i Report outlines longer NHS waiting times

A report on how the health service can survive
TECHNOLOGY IS
CHANGING AN
DEMETRI SEVASTOPULO — WASHINGTON CLIVE COOKSON — WASHINGTON DC
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped.— PAGE 4

lacked the correct work visa. Ms Nauert problem. The World Health Organisa-
i Emerging nations in record debt sales Warning: this article may be
FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

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

Heather Nauert, the former Fox News Cooking dinner in a modern American
taking advantage of a surge in optimism toward
emerging markets as trade booms.— PAGE 15

3 Confidence in IT plans ‘has collapsed’

3 Fivefold rise in declarations expected
JAMES BLITZ — WHITEHALL EDITOR
Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
How To Spend It
did not respond to requests for com- tion estimates that 4m people a year die
A survey has revealed that a
adjust its negotiation position with the
record 455 tall buildings are
planned or under construction
in London. Work began on
over disputed painting of Jane Austen
engulfed in
EU, a Whitehall official said. “If running almost one tower a week

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

fresh tax probe

ment about the situation. prematurely from lung and heart dis-
leaves the EU, customs authorities have In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
admitted to MPs.
HM Revenue & Customs told a parlia-
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings
mentary inquiry that the new system
needed urgent action to be ready by
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland

March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time “has collapsed”.
ald Trump to serve as his ambassador tion as unhealthy as outdoor air in the
complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image

The choice of Ms Nauert, a former eases caused by fine airborne particles

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

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

(Deposito Legal) M-32596-1995;

host of Fox & Friends, which is viewed as and combustion gases from stoves.
Theresa May announced in January that international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
Brexit would include departure from the EU . . . Internal ratings are designed The Swiss bank said yesterday it was tax authority added: “The international
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
to make sure that each project gets the
focus and resource it requires for suc-
Terror attacks inwith
co-operating western Europe after
authorities
offices in London, Paris and Amsterdam
Recent reach
itsattacks
notably the message
2011
— of this investigation sends a clear
that there is no hiding place for
The lure of the exotic
customs union, the number is expected cessful delivery.” were contacted
Highlighted attack byOthers massacre bythose seeking to evade tax.”
local officials Robin Lane Fox on the flair

eration, leaving the high-profile posi- groundbreaking US study.

“concerning client tax matters”. Anders BreivikDutch in prosecutors, who initiated the
to hit 300m. HMRC’s letters to the select commit- of foreign flora — HOUSE & HOME

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

whether Whitehall can implement a
host of regulatory regimes — in areas
caused by Mrs May’s unexpected deci-
sion to leave the EU customs union.
cities in its decision to set up an
EU base to help deal with the
will be reinsured back to the
syndicates at its City of London
homes for the industry. But Paris
Mr Nelson said the city won on The inquiries threaten to undermine
efforts by the country’s banking sector
favourable to the president, was heavily Ms Vance said people did not realise
bombings — have
thousand” bank accounts opened in
bucked the trend
Switzerland and not declared to French

London SE1 9HL

ranging from customs and immigration
to agriculture and fisheries — by the
time Britain leaves the EU.
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
its transport links, talent pool
and “extremely good regula-
tory reputation”.
to overhaul business models and ensure
customers meet international tax
Publishing Company, The Financial Times Limited,
of generally low
tax authorities.
fatalities from
The Swiss attorney-general’s office
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in

tion vacant following the departure last

Problems with CDS and other projects
essential to Brexit could force London to
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
centuries-old insurance mar-
ket, said he expected other
London’s specialist insurance
groups after the UK leaves the
requirements following a US-led clamp- western Europesaid it was “astonished at the way this
Lex page 14
down on evaders, which resulted in operation has been organised with the
Insurers set to follow page 18
billions of dollars in fines. deliberate exclusion of Switzerland”. It

registered office as above. Local Representative office;

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

City watchdog sends a clear message as

criticised by foreign policy experts who Early results from the HomeChem that cooking in modern western kitch-
general’s office expressed “astonish- In 2014, Credit Suisse pleaded guilty
ment” that it had been left out of the in the US to an “extensive and wide-
actions co-ordinated by Eurojust, the ranging conspiracy” to help clients THE RISE
Escape OF
the taper ECO-GLAM
trap
EU’s judicial liaison body. evade tax. It agreed to fines of $2.6bn.

banker loses job over WhatsApp boast How high earners can evade
C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. ISSN year of Nikki Haley.
Credit Suisse, whose shares fell 1.2 per Additional reporting by Laura Noonan in

Subscriptions & Customer service cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
subject ofinvestigations in the Nether-
lands, France and the UK. The bank said in Paris
Houlder in London, and Michael Stothard
Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
a pension headache — FT MONEY

said she lacked experience. Her defend- project, based on intensive monitoring ens might also cause significant pollu-
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to
JENNIFER THOMPSON — LONDON

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

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

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

www.ft.com/subscribetoday Congressional Republicans seeking to

avert a US government shutdown after
April 28 have resisted Donald Trump’s
attempt to tack funds to pay for a wall
on the US-Mexico border on to
chat app.
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
to his employer voluntarily.
The FCA said Mr Niehaus had shared
confidential information on the messag-
ing system “on a number of occasions”
last year to “impress” people.
Several banks have banned the use of
else”.
Information shared by Mr Niehaus
UAE: Al Nisr Publishing LLC, P.O.Box 6519. Dubai. Editor
Ms Nauert said she was withdrawing ers argued that her two years in the top of a model home on the University of tion, though the health effects are much
included the identity and details of a
client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would

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

Qatar: Dar Al Sharq, PO Box 3488, Doha-Qatar. Tel: +97 because “the past two months [since her state department role had proven her Texas Austin campus, were released at less serious than in poor countries.
to accept the proposals. encryption system that cannot be as iPhone-loving staff spurn their work- Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and

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

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

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

lot more. Some 43 per cent of care
staff — amounting to 341,000 people
aged 25 and over — earn less than the
44557825
“phased approach” to the divorce proc-
ess that prioritises progress on with-
drawal terms.
was “within the parameters of what we
were expecting, perhaps more on the
upside”.
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation

nomination was announced] have been credentials, but critics countered that the American Association for the Inhabitants of the industrialised
www.ft.com/subscribenow new living wage and the increase is The decision to add the clause giving British officials admitted that the EU’s after Brexit with a trade deal.
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Analysis i PAGE 4 300-year territorial dispute between tion deal could be problematic. Man in the News: David Davis page 11

Letters to the editor www.ft.com

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Nasdaq Composite
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7369.52
1.249
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1.241 £ per $
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1.164
0.806 UK Gov 10 yr
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111.295 111.035 ¥ per € 119.476 119.363 Jpn Gov 10 yr
3475.27 0.18 ¥ per £ 139.035 137.822 £ index 76.705 76.951 US Gov 30 yr
7373.72 -0.06 € index 89.046 89.372 $ index 104.636 103.930 Ger Gov 2 yr
100.46
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100.45
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Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)
gruelling for my family”. Robert Pal- standing at the state department Advancement of Science meeting. world spend, on average, 90 per cent
Frankfurt, Brussels, Milan, Madrid, New York, FTSE All-Share 4011.01 4011.80 -0.02 SFr per € 1.069 1.072 SFr per £ 1.244 1.238 price prev chg

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297.99 297.73 0.09 Gold $
Mar 30
50.22
52.98
1248.80
prev
49.51
52.54
1251.10
Fed Funds Eff
%chg US 3m Bills
1.43 Euro Libor 3m
0.84 UK 3m
-0.18 Prices are latest for edition
0.66
0.78
-0.36
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0.66
0.78
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Executive appointments
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FTSEurofirst 300
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20689.64 20728.49 -0.19 £ per €
1503.03 1500.72 0.15 ¥ per $
3495.59
7322.92
3481.58 0.40 ¥ per £
7369.52 -0.63 € index
0.855 0.859 € per £
111.430 111.295 ¥ per €
139.338 139.035 £ index
88.767 89.046 $ index
1.169 1.164 Ger Gov 10 yr
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ladino, deputy state department podium was very different from negoti- Measured indoor concentrations of of their time indoors — mostly at home
Frankfurt, Brussels, Milan, Madrid, New York, FTSE All-Share 3990.00 4011.01 -0.52 SFr per € 1.071 1.069 SFr per £ 1.252 1.244 price prev chg
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Hang Seng
FTSE All World $
18909.26 19063.22 -0.81 Oil WTI $
24111.59 24301.09 -0.78 Oil Brent $
297.38 298.11 -0.24 Gold $
50.46
53.35
1244.85
50.35
53.13
1248.80
0.22 Euro Libor 3m
0.41 UK 3m
-0.32 Prices are latest for edition
-0.36
0.34
-0.36
0.34
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www.exec-appointments.com Turkey: Dunya Super Veb Ofset A.S. 100. Yil Mahallesi
34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24. spokesperson, said the president would ating with China and Russia. pollutants quickly exceeded the — yet domestic air pollution is essen-
Published by: The Financial Times Limited,
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1 Southwark Bridge, London SE1 9HL, United Kingdom.
Tel: +44 20 7873 3000; Fax: +44 20 7407 5700. Reproduction of the contents of this newspaper in any new nominee for the UN position. Haley, the former South Carolina sensitive monitoring instruments had she said.
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 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
Monday 18 February 2019 ★ FINANCIAL TIMES 3

INTERNATIONAL

Interview. Peter Altmaier France

Anti-Semitic
EU urged to abuse at ‘gilets
jaunes’ protest
protect tech condemned
from rivals VICTOR MALLET — PARIS

Anti-Semitic threats and insults

German economy minister
warns Europe is in danger of
ceding knowhow to China
GUY CHAZAN — BERLIN
Paris and Berlin will this week join
forces on efforts to defend Europe’s
“technological sovereignty”, Germany’s
economy minister has said, in a bid to
fight off encroachment from global
rivals and shore up EU industry after
the failed Alston-Siemens rail merger.
Peter Altmaier told the FT that
France and Germany wanted to make a
joint proposal for a new European
industrial strategy, including possible
reform of EU competition law.
He said he and Bruno Le Maire, his
French counterpart, had been spurred
to action by the European Commission’s
move to block the proposed tie up
between Siemens and Alstom which
was aimed at helping the European
train makers to compete with CRRC, the
Chinese railway group.
In an interview, Mr Altmaier, a close
ally of Angela Merkel, said he would
hold talks with Mr Le Maire in Berlin
tomorrow on how to ensure European
companies are better able to compete
with international rivals.
“Often European companies are com-
peting globally with US or Asian firms
that are very strong in their home mar-
kets,” he said. “So Europe should also
allow companies to exist and become
global players that are big enough to
compete effectively.”
Paris and Berlin have been left fuming
by Brussels’ refusal to countenance a
deal between Siemens and Alstom. In
recent days, the two countries have
emphasised the need to create and fos-
ter “European industrial champions”
and warned of the risk of Europe ceding
its technological supremacy to China.
The challenge to the status quo from
the eurozone’s two leading economies is
likely to intensify debate across the EU
about whether and how the bloc should
protect important domestic companies
and foster innovation. Mr Altmaier has
led the charge, unveiling an industrial
strategy for Germany this month. He
has emerged as the face of Berlin’s grow-
ing resistance to Chinese investment,
warning repeatedly of the menace
posed to Germany’s prosperity by
China’s growing economic strength.
As part of his strategy, he said the
state should step in to acquire German
high-tech companies if they were about
to be taken over by state-backed Asian
predators. He cited the €4.5bn acquisi-
tion in 2016 of Kuka, the industrial
robot-maker, by Midea, the Chinese
appliance maker, a deal that raised fears
of German knowhow changing hands.
EU competition law should be eased
to allow the creation of mega-compa-
nies. “It’s indisputable that when you
operate in global markets you need to be
of a certain size,” not least in terms of
companies making aircraft, lifts for
100-storey buildings “or trains where
projects can cost €30bn or more”, he
said. “That’s why it’s important that we
don’t break up these companies or put
obstacles in their path.”
Mr Altmaier was speaking days after
Mr Le Maire presented a proposal that
would amount to the biggest shake-up
of EU merger rules for 30 years. It
included plans to give national leaders
the right to overturn merger decisions
by Brussels, an idea Mr Altmaier said
could be a “meaningful step”.
Some officials in Berlin have warned
the idea could lead to arbitrary, politi-
Up in arms: Peter Altmaier, below,
cites the Chinese takeover of robot-
maker Kuka in his efforts to protect
European industry — Krisztian Bocsi/Bloomberg
‘Of course, cutting red
tape and investing more
heavily in infrastructure
are also very important’
cally driven decisions that would dimin-
ish the European Commission’s role.
Mr Altmaier and Mr Le Maire have
proposed that Brussels consider a com-
pany’s global market share rather than
its national or European position when
deciding on a merger.
Mr Altmaier’s strategy has been criti-
cised by some. Christoph Schmidt, chair
of the German Council of Economic
Experts, this week described it as
“highly interventionist” and opposed
the singling out certain “strategically
important” companies for protection.
“Among the companies identified are
laggards such as Deutsche Bank, leaving
the reader at a loss as to why exactly —
apart from its name — it should be pro-
tected while others are to be left
exposed,” he wrote. It would be better to
“incentivise European companies to be
highly competitive and innovative on
their own account”, improve education
and provide targeted incentives for com-
panies to pursue innovation, he said.
Mr Altmaier said his strategy also
included such measures. “It talks about
improving the fiscal environment,
achieving more affordable energy prices
and stabilising social security contribu-
tions,” he said. “Of course cutting red
tape and investing more heavily in
infrastructure are also very important.”
Mr Altmaier also addressed the issue
of Huawei, the Chinese tech company
that several countries have blocked
from supplying equipment to their
next-generation mobile phone net-
works amid fears over espionage.
Last month, Germany said security of
the 5G network and the safety of prod-
ucts offered by telecoms suppliers was
“highly relevant” and the government
would be “guided” by such concerns in
its buildout of the network. Mr Altmaier
said: “The German government does
not want to discriminate against any
company. But we insist that all products
used and installed in Germany meet the
highest standards of safety.”
directed at French writer Alain Fink-
ielkraut by gilets jaunes demonstrators
in Paris at the weekend have drawn
fierce condemnation from President
Emmanuel Macron and other leaders
already concerned about a surge in vio-
lence towards Jews.
Marchers on the Boulevard du
Montparnasse on Saturday could be
heard and sometimes seen shouting
“big Zionist shit!”, “Go back to Tel Aviv!”
and “France is ours!” on videos distrib-
uted on social media.
“I sensed absolute hatred, and unfor-
tunately it’s not the first time,” Mr Fink-
ielkraut, a member of the Académie
française, France’s most prestigious lit-
erary institution, told Le Journal du
Dimanche newspaper. “I would have
been frightened if it had not been for the
security forces.”
Mr Macron tweeted that the anti-Se-
mitic insults were “the absolute nega-
tion of everything we are and what
makes us a great nation. We will not tol-
erate them.”
“The son of Polish immigrants who
became a member of the Académie
française, Alain Finkielkraut is not only
an eminent man of letters but also the
symbol of the opportunities provided to
all by the French republic,” the French
president added.
Marine Le Pen, leader of the far-right
Rassemblement National, who is court-
ing conservative Jewish voters ahead of
the European elections in May, called
the abuse “detestable and shocking”.
The neo-conservative Mr Fink-
ielkraut has accused European societies
of caving in to Islamists in the name of
tolerance and liberalism.
France’s interior ministry announced
last week that anti-Semitic incidents
had risen 74 per cent to 541 in 2018,
compared with 311 in 2018, after two
years of decline.
 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
4 ★ FINANCIAL TIMES Monday 18 February 2019

INTERNATIONAL

Economic crisis

Venezuela’s Guaidó courts Moscow and Beijing

Opposition leader targets
president’s allies ‘with
big investments at stake’
GIDEON LONG — CARACAS
HENRY FOY — MOSCOW
SAM FLEMING — WASHINGTON
Venezuela’s parallel government led by
Juan Guaidó of the opposition is trying
to establish formal diplomatic relations
with China and Russia, the most power-
ful allies of Nicolás Maduro, the man he
wants to topple.
“We’re trying to establish formal rela-
tions with all countries including, of
course, Russia and China, two of the
countries with the biggest investments
in Venezuela,” Mr Guaidó told the
Financial Times.
The Wall Street Journal said this week
that the Guaidó-led opposition had met
Chinese diplomats in Washington keen
to protect their country’s outstanding
$20bn of investments in Venezuela.
“We’re sending and receiving commu-
nications,” Mr Guaidó said. “That’s all I
can say at the moment.”
Moscow and Beijing, Mr Maduro’s big-
gest financial backers, still regard him
as Venezuela’s president.
On Thursday Carlos Vecchio, Mr
Guaidó’s envoy to Washington, said that
the opposition had “sent very clear mes-
sages” to both China and Russia. “We
want to maintain relations with all
countries, including China and Russia,
in a spirit of respect, transparency and
mutual benefit,” he said, while clarify-
ing he had not spoken to officials from
either country directly. “I think they’ve
understood the message very clearly.”
In Moscow a government official told
the FT that Russia was “not yet” speak-
ing directly to Mr Guaidó but was con-
ducting back-channel discussions with
his sponsors in the US. The official, who
declined to be named as the talks are
secret, added: “But if Mr Maduro is so
weak to lose power, let him lose power.”
Moscow has loaned Caracas more
than $15bn since 2006 and is owed
$3.2bn in sovereign debt. By the end of
last year PDVSA, the Venezuelan state-
owned oil company, had debts of $2.3bn
to Rosneft, its Russian counterpart. But
Gazprombank, the Russian state lender,
has now halted business with PDVSA to
‘If Mr Maduro is so weak
to lose power, let him
lose power’
Russian official
avoid US sanctions, people familiar with
the matter said.
The bank, which is owned by Russian
state interests including Gazprom, froze
PDVSA’s accounts and halted all trans-
actions, the sources said yesterday.
Gazprombank did not respond to
requests for comment.
China had lent Venezuela $62bn but
financing has dried up as Beijing fears it
might not be repaid.
Russia’s foreign ministry has
acknowledged talks have taken place
with Washington and that “Russia is
maintaining the broadest contacts on
the Venezuela situation”. “We are con-
sistently clarifying our stance, including
to the US,” Maria Zakharova, the minis-
try spokeswoman, said.
Mr Maduro told the Associated Press
this week that, Jorge Arreaza, his foreign
minister, had twice met Elliott Abrams,
US special envoy, in New York.
Washington says it is willing to meet
Venezuelan officials “including
Maduro” but only “to discuss their exit
plans”. Mr Guaidó said he had no knowl-
edge of the Arreaza-Abrams meetings.
“The information coming from Maduro
is difficult to believe,” he said. “We’ve
said very clearly there’s no process of
negotiation.”
The next step in Mr Guaidó’s chal-
lenge to Mr Maduro’s rule is scheduled
for next Saturday, when the opposition
hopes to bring aid into Venezuela from
neighbouring Colombia and Brazil and
the Caribbean island of Curaçao.
Mr Maduro said the plan was “a show”
and a pretext for a US-led invasion,
warning Washington not to start
“another Vietnam”.

Xinjiang. Uighur suppression Climate change

China uses spy tech to track 2.6m, leak reveals
Region known as home to
ethnic minority used as test
base for facial recognition kit
YUAN YANG — HONG KONG
MADHUMITA MURGIA — LONDON
China is closely tracking almost 2.6m
people in its northwestern region of
Xinjiang, where Uighurs and other Mus-
lim minorities are under a police lock-
down, a data leak has revealed.
SenseNets, a facial recognition equip-
ment provider and police contractor,
collected nearly 6.7m GPS co-ordinates
in one database over 24 hours, said Vic-
tor Gevers, a security researcher, who
found the database.
The location data were matched to
names, many of them Uighur, as well as
ID numbers, home addresses, photos,
and employer details, said Mr Gevers.
Connected to the database were a large
number of organisations including the
police, hotels and companies.
During the past two years, Beijing has
put more than 1m Muslims in intern-
ment camps in Xinjiang but argues its
policies are to prevent extremism.
Xinjiang has been China’s main test-
ing ground for integrating facial recog-
nition technology into its security appa-
ratus. Most checkpoints on main roads
in Xinjiang use facial recognition cam-
eras — one Canadian journalist reported
how he had been tracked for 1,600km
by licence plate recognition cameras.
The US is considering sanctions
against companies and officials
involved in China’s repression in Xin-
jiang. Hikvision, which makes surveil-
lance cameras, is already banned from
US government procurement. Export
bans would cripple Chinese surveillance
companies that rely heavily on US com-
ponents such as chips from Intel and
Nvidia. In July it emerged that Hikvision
had been contracted to install cameras
at the entrances of 967 mosques.
On its website SenseNets, based in
Shenzhen, boasts of the four police con-
tracts it has won across China. As well as
facial recognition and crowd analysis
services, it sells recording devices.
SenseNets’ database was accessible on
an online server without a login pass-
word for half a year, according to server
logs read by Mr Gevers, who works for
the GDI Foundation, a cyber security
Kashmir tension
Men install a non-profit organisation. Mr Gevers
CCTV camera emailed the owners of the server
in Kashgar, describing the problem after he discov-
Xinjiang. In July ered the data leak last week, in line with
it emerged that GDI policy upon finding leaks.
Hikvision had SenseNets did not respond but
been contracted appeared to have made the server
to install secure so it could no longer be accessed.
cameras at “This database is used by govern-
967 mosques ment-affiliated actors to track minori-
Thomas Peter/Reuters
ties,” said Bob Diachenko of Security
Discovery, a consultancy, who has
worked with Mr Gevers before. “It’s an
ethical puzzle: I would still report it as
Victor did, and continue to spread the
word to make sure that this tracking
does not happen.”
SenseNets highlights on its website its
role in helping Guangdong police prose-
cute people involved in illegal gather-
ings, a euphemism for protests. It also
says it built the facial recognition sur-
veillance system for police in Lianyun-
gang, near Shanghai, and supplied secu-
rity services to Duyun, the capital of a
region in western China that is home to
the Miao and Qiannan Buyi minorities.
NetPosa, SenseNets’ parent company,
claims to have almost 2m surveillance
cameras online, 1.4m of which are in
use. Its website also reveals the com-
pany has a branch in Xinjiang. Net-
Posa’s annual revenues have grown rap-
idly in recent years and in its latest filing
to the Shenzhen Stock Exchange fore-
cast net profit of Rmb365m-Rmb480m
($54m-$71m) for 2018.
SenseNets and NetPosa did not
respond immediately to requests for
comment on the data leak or on their
relationship with the Xinjiang police.
The Ministry of Foreign Affairs and
the Xinjiang Autonomous Region police
did not respond to requests for com-
ment. A Xinjiang propaganda bureau
spokesman said: “I have called the rele-
vant agencies, but they are all unfamil-
iar with this issue.”
Silicon Valley
On its Live facial recognition is being trialled
by police in many parts of the world,
website, including the UK, US and India. NEC of
SenseNets Japan, one of the largest commercial
providers, has supplied all three coun-
boasts of tries, while Amazon’s Rekognition sys-
the four tem is being tested in the US. Computer
science experts have warned that the
police technology is prone to errors that lead to
contracts it false positives. Yoshua Bengio, a
machine learning pioneer at the Univer-
has won sity of Montreal, said the technology
across was “very stupid” and, in its current
form, dangerous to deploy widely.
China Authorities in parts of Xinjiang have
also been collecting biometric data from
residents, including blood samples. In
2017 residents were asked to install a
mobile app named Jingwangweishi, or
“web cleaning soldier”, to “clear the
trash off your phone”. Avram Meitner,
an independent security researcher,
found the app scanned phones for illicit
files in order to inform authorities.
Economists
led by Yellen
back carbon
tax over Green
New Deal
LESLIE HOOK — LONDON
US economists led by Janet Yellen are
uniting to back a carbon tax as the most
effective and immediate way of tack-
ling climate change.
At a time when Democrats including
Alexandria Ocasio-Cortez, a New York
congresswoman, are pushing a “Green
New Deal” to reduce greenhouse emis-
sions, climate change is shaping up to be
a big 2020 election issue.
But Ms Yellen, a former chair of the
US Federal Reserve, said that the Green
New Deal was costly, whereas the car-
bon tax, which would plough proceeds
back to the public in dividend pay-
ments, would be the most efficient way
to reduce emissions. She said that start-
ing the tax at about $40 a ton and then
raising it over time, by more than the
rate of inflation, would be “a very effec-
tive” way of reducing emissions.
The proposal, organised by the Cli-
mate Leadership Council, is a bipartisan
effort that has united senior economists
from both parties and garnered 3,300
signatures from professional econo-
mists and academics in the US. It sur-
passes previous petitions across the US
analysts’ community, such as the 1997
Economists’ Statement on Climate
Change, which had 2,600 signatures.
“This is a plan that harnesses mar-
kets,” said Ms Yellen. “It is much more
efficient and less costly than methods
proposed by the proponents of the
Green New Deal.
Under the terms, the revenue from a
carbon tax would be redistributed to
Americans on a per capita basis, which
would disproportionately benefit the
poorest households more. The proposal
also envisages a carbon border tax that
would impose a levy on carbon-inten-
sive goods entering the US.
Marty Feldstein, a Republican econo-
mist and former adviser to Ronald Rea-
gan who is one of the signatories said:
“Our current method of trying to con-
trol carbon emissions by complex regu-
lations is a bad idea, we think it is better
to use a price mechanism to do it.”
The chances of passing a carbon tax
and dividend under the current admin-
istration are viewed as slim due to Presi-
dent Donald Trump’s sceptical views on
climate change, but the signatories hope

India weighs military options against Pakistan Republican billionaire and US the policy will gain momentum.
Ms Yellen said: “My hope is that under
a future administration, whether demo-

AMY KAZMIN — NEW DELHI

Tension between nuclear-armed neigh-
bours India and Pakistan mounted over
the weekend as New Delhi’s security
forces weighed options for a military
response to a suicide car bombing that
killed 44 paramilitary police officers in
its restive Kashmir region.
In a series of public speeches while
inaugurating a public works project
before upcoming parliamentary elec-
tions, Narendra Modi, India’s prime
minister, continued to express fury at
last week’s attack. He vowed to “avenge
every tear” and said India’s military had
been given a free hand to decide on an
appropriate response.
“The fire that is raging in your hearts
is in my heart, too,” Mr Modi told a mas-
sive crowd in Bihar yesterday. The pre-
vious day, Mr Modi declared that “how,
when, where and who will punish the
killers and their promoters will be
decided by our forces, who are capable
of dealing with the situation”.
Indian security forces are reportedly
considering responses, including
“stand-off” strikes that involve using
aircraft to fire missiles into Pakistani-
held territory from across the line of
tech unite over data privacy
control that divides Muslim-majority
Kashmir between the two countries.
Analysts warn such unprecedented
moves risk a dangerous escalation.
“He is basically promising a pretty sig-
nificant retaliatory strike,” said Vipin
Narang, professor of political science at
the Massachusetts Institute of Technol-
ogy. All the signs are that they are con-
Narendra Modi
told a rally in Bihar
state that the ‘fire
that is raging in
your hearts is in
my heart’
sidering some sort of stand-off strike
from across the LOC into Pakistani tar-
gets. The risk is that Modi miscalculates
how far he can go without provoking a
significant Pakistani response.”
Pakistani troops are on a heightened
state of alert along the de facto border
even as a senior Pakistani foreign minis-
try official said diplomats were lobbying
western countries to “restrain India
from a military offensive”.
In the deadliest militant attack in
Kashmir’s three-decade separatist
insurgency, a suicide bomber on Thurs-
day, drove an explosives-packed vehicle
into a military convoy, obliterating a bus
packed with troops returning to duty
from home leave. Jaish e-Mohammad, a
Pakistan-based terror group, has
claimed responsibility for the attack.
New Delhi has accused Pakistan of
providing “full freedom” for Jaish e-Mo-
hammad to operate and plan attacks on
Indian territory, and demanded Islama-
bad take “immediate and verifiable”
steps against the group. Islamabad
has rejected the accusation that it
bears any responsibility and yesterday
called on India to “introspect and
respond to questions about its security
and intelligence lapses that led to this
attack”.
But after a phone call with Ajit Doval,
India’s national security adviser, John
Bolton, the US national security adviser,
tweeted that “Pakistan must crack
down on JeM and all terrorists operating
from its territory”.
New Delhi also said that Mr Bolton
had “supported India’s right to self-
defence against cross-border terror-
ism”, suggesting a tacit acceptance of a
potential military response.
Additional reporting by Farhan Bokhari in
Islamabad
KIRAN STACEY — WASHINGTON
Organisations run by Charles Koch
have begun to lobby US politicians on
data privacy as the American billion-
aire and conservative donor deepens
his unlikely alliance with Silicon Valley,
and Google in particular.
The Charles Koch Institute and Ameri-
cans for Prosperity are among organisa-
tions that have identified privacy as one
of their top political priorities for the
year. Politicians are preparing drafts of a
bill that could for the first time place
national limits on how technology com-
panies use data, including banning com-
panies from passing on customer details
to third parties.
The issue has brought together the
Republican powerbroker and signifi-
cant players in the technology industry,
including Google.
Billy Easley, senior technology policy
analyst at Americans for Prosperity, a
lobbying group founded and funded by
Mr Koch, said: “It is essential to protect
privacy without destroying Americans’
ability to create groundbreaking tech-
nology. Heavy-handed measures can
choke off innovation while doing little to
protect consumers and unleashing
unintended consequences.”
Big US tech groups have traditionally
aligned themselves with liberal causes
and politicians, with senior executives
such as Facebook’s Sheryl Sandberg
donating heavily to Democratic candi-
dates.
But after a string of scandals, the rela-
tionship between Silicon Valley and the
American left has begun to break down,
with some Democratic politicians argu-
ing that the largest technology compa-
nies have abused customer trust and
grown too powerful. Meanwhile, the
industry has found common cause with
the political right as it argues against
moves toward stricter regulation.
Koch-affiliated organisations have
been urging policymakers to regulate
only in instances where consumers have
been harmed by companies misusing
their data. Koch Industries also owns
i360, a company that collects and analy-
ses voter data.
Google declined to comment.
crat or republican that there will be a
call and a greater focus on doing some-
thing about climate change.”
Ms Yellen is an adviser at the Climate
Leadership Council, which is backed by
companies including ExxonMobil, BP,
Shell, General Motors and Unilever, as
well as environmental groups such as
the World Wildlife Fund.
“Businesses I think, are able to get
behind this because it is preferable for
most businesses to have a predictable
environment in which there are a set of
prices . . . rather than have government
regulations dictating what technologies
must be used,” said Ms Yellen.
The 3,300 signatories include Larry
Summers, a former Treasury secretary,
Ben Bernanke, a former Fed chair, Alan
Blinder, a former Clinton economic
adviser and Christina Paxson, the presi-
dent of Brown University.
The proposed tax has been criticised
by environmentalists because it does
not set a cap on total carbon emissions.
However, the idea has gained consensus
as carbon trading schemes around the
world have struggled to dent emissions.
Ted Halstead, founder of the Climate
Leadership Council, hopes to get carbon
tax legislation introduced by Republi-
cans and Democrats in the Senate.
 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
Monday 18 February 2019 FINANCIAL TIMES 5
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6 ★ FINANCIAL TIMES Monday 18 February 2019

ARTS

Mysteries, monstrosities and melons

Horror: Beatrice Scirocchi in ‘Berberian Sound Studio’ — Marc Brenner
simply suggested by, sound effects as
THEAT RE protagonist Gilderoy mixes the sound-
track for an Italian horror/mystery/
Berberian Sound Studio exploitation film. The first circle, then,
Donmar Warehouse, London to be squared by Joel Horwood and Tom
aaaee Scutt’s stage version is to accommodate
both the allusive, oblique form of the
Ian Shuttleworth film and theatre’s core characteristic of
“liveness”. Horwood’s script, in particu-
Sometimes it all becomes a matter of lar, needs to spell out enough to keep us
squaring the circle: reconciling, or at plugged into the proceedings, yet also
least finding a workable compromise leave enough gaps for our imagination
between, two mutually exclusive ele- to take on most of the construction.
ments. (No, I’m not thinking at all of He does a fine job of it, until the final
current British parliamentary events; phase. Strickland’s film deconstructs
why do you ask?) itself and then reassembles in a different
Peter Strickland’s 2012 Berberian shape which seems, bizarrely, to be a
Sound Studio is a horror film in which the metaphor for itself. That remark makes
goriest, most terrifying thing that actu- no sense unless you actually see this
ally happens (or does it?) is an unex- happening, which is rather my point.
plained knock on the door. Everything The effects are so dependent on the
else is perpetrated by, or more often nature of film, however, that Horwood
has to ditch a good 90 per cent of this
material and replace it with a flashback
which doesn’t really add anything
except a moment for the final blackout.
But it’s both effective and brave to leave
almost as much of the dialogue in
untranslated Italian as the film does.
Tom Scutt’s direction likewise gets as
much as it can out of substantive events
in the sound studio without overplaying
its hand. Tom Brooke as Gilderoy
(played in the film by Toby Jones)
begins as passive, perhaps paralysed by
the unfamiliarity of the genre compared
with his normal territory of nature doc-
umentaries. As work progresses, he
finds that his job of giving a voice to the
various (unseen, of course) monstrosi-
ties begins to infect his own personality.
Lara Rossi as voiceover actor Sylvia
begins to suggest that there may be
more going on than simply a tasteless
film. One of the Foley artists providing
sound effects by taking an axe to melons
and the like is played by Tom Espiner,
whose own Sound&Fury company has
produced several works in which the
principal element is aural.
But that’s where the second square
circle comes in. Live Foley work is now
fairly familiar in stage productions, and
so a piece that does not just involve such
work but is to a great extent about it
seems an enticing proposition. What,
then, when on a number of occasions
Ben and Max Ringham’s sound design
fakes it, with the folk onstage miming
effects which are in fact recorded? You
could argue, I suppose, that it just takes
the reality/illusion theme one clever
level deeper; I’m afraid, though, that to
me it simply amounts to wimping out.
To March 30, donmarwarehouse.com
T H E AT R E
Edward II
Sam Wanamaker Playhouse
aaaee
Sarah Hemming
The Sam Wanamaker Playhouse is
a great space for conspiracy, with
its candlelit stage and shadowy
recesses. And there’s conspiracy
aplenty in Nick Bagnall’s swift,
compressed production of Chris-
topher Marlowe’s Edward II. No
sooner has the ceremony for the
deceased king finished and the
crown solemnly been placed on
Edward’s head, than the nobles are
at it, muttering and plotting. They
lurk behind pillars, pop up in the
audience, appear in the doorways.
The focus of their wrath is Piers
Gaveston — the new king’s favour-
ite, now recalled from banishment
and catapulted by young Edward
to the heart of government. Bag-
nall’s production leaves us in no
doubt that the two are lovers, and
that Edward is besotted with Gave-
ston, but it also makes clear that
what really enrages the barons is
that this incomer is “basely born”
and, as such, threatens the social
hierarchy. It’s that, and Edward’s
conflation of private passion with
public office, that tips the scales.
On a stage empty but for a cou-
ple of gilded thrones, Bagnall’s
staging relishes the cut and thrust
of the narrative. The 16th-century
play condenses years into a swift,
single arc, with the barons schem-
ing first to have Gaveston exiled,
then bringing him back in order to
murder him, and young Mortimer
spotting a chance to “comfort” the
abandoned Queen Isabella and
rule through Edward’s young son.
Here the edited drama’s swift
descent from royal pageantry to
brutal murder is briskly delivered,
characters literally climbing over
audience members in their haste
to conspire and contrive.
It’s fun and the cast’s energy and
clear, crisp delivery of the verse
sweep the audience along. What it
misses, though, is the darkness in
the piece: this is a play that
exposes the dangerous struggle for
power and the ease with which a
nation can tip into barbarous civil
war. The famously horrific death
imposed on Edward sums up how
ruthless the lust for power can be.
We don’t get that full sense of
national jeopardy here.
What does come over is the
ambivalence of Edward’s position.
He is impetuous and capricious,
recklessly handing out titles to his
lover and squandering public
money in a manner incompatible
with his solemn duties as sover-
eign. The barons’ snobbery and
thirst for control are ugly, but
Edward’s obstinate refusal to
engage with serious matters of
state displays, at best, naivety.
Tom Stuart’s excellent, graceful
Edward emerges as vain, defiant
and painfully immature, but also
genuinely in love — he seems to
melt on Gaveston’s arrival. Beru
Tessema’s sinuous, cocky Gaves-
ton, meanwhile, exudes a self-
confidence that Edward lacks.
In opposition, Katie West’s Isa-
bella traces a path from hurt, dis-
carded wife to steely conspirator,
while Jonathan Livingstone’s Mor-
timer is a man who spots an oppor-
tunity and grasps it. A mixed but
enjoyable, vivacious staging.
To April 20, shakespearesglobe.com
Tom Stuart, left,
and Beru
Tessema in
‘Edward ll’
Tristram Kenton

New tricks we can learn from dogs

PODCASTS
Fiona
Sturges
The first time Mick met Frankie, he was
in a dark place. A full-time blues
musician, Mick had been diagnosed
with tinnitus, a condition that causes a
loud ringing sensation in the head. His
specialist told him there was no miracle
cure and it could last for years, but there
was one thing he could do to help
himself: he could find a distraction that
would shut out the noise. “You have to
imagine it’s like somebody flicking you
in the eye all day, and the only way
they’ll stop is to completely ignore
[them],” says Mick. And so he got a dog
called Frankie.
Oh My Dog is a new monthly podcast
about dogs and their humans, and it’s
completely delightful. It tells tales of
love and compassion, sadness and
trauma and the healing power of
companionship. As the stupidly
besotted owner of a spaniel, I was always
going to enjoy this, but you’ll have to
trust me when I say you don’t need to
like dogs to be moved by it, since the
themes deal as much with the human as
the canine condition. The series is
hosted by the Brisbane-based producer
Michelle Ransom-Hughes, who, save for
a few contextual interjections, allows
her human case studies to speak
entirely for themselves. The only other
sounds are the barks and snuffles of
dogs who, in one way or another, have
saved their owners’ sanity — and in
some cases their lives.
Mick found Frankie at a remote
puppy farm where the animals were
being mistreated. When he brought
her home she was terrified, but
slowly she became brave and
affectionate. Meanwhile the ringing in
Mick’s head gradually subsided and he
was able partially to resume his work
as a musician.
Another episode tells the story of a
four-year-old girl, Kate, who, while
riding around on her trike, was attacked
by one of her parents’ dogs. It clamped
its jaws around her head, leaving her in a
coma with a punctured skull. That four-
year-old is now a healthy adult and a
fervent dog evangelist with a Rhodesian
Ridgeback puppy, Lola. “They teach you
to enjoy the feel of soft air on your face,
the warmth of the sun on your back, a
drink of cold water when you’re thirsty,”
she says contentedly. As with the best
podcasts, simplicity is key to Oh My Dog.
What, on the surface, is just people
talking about their pets is about human
resilience and the lengths we go to in
order to love and be loved.
The British broadcaster Emily Dean
hosts the long-running Walking the Dog
podcast, which sees her taking a stroll
with assorted well-known types plus
their dogs. Mark Kermode, Frank
Skinner, Adam Buxton and Rob Brydon
are among those engaging in amiable
chats about life, the universe and their
four-legged friends.
Lola, the
Rhodesian
Ridgeback,
whose story is
told — along
with that of her
owner — in
‘Oh My Dog’
MichelleRansom-Hughes

DA N C E
Tanztheater Wuppertal
Sadler’s Wells, London
aaeee
Louise Levene
Four directors have tried (and failed) to
fill the void left by Pina Bausch’s sudden
death in 2009. The most recent incum-
bent, Adolphe Binder, was briefed to
nurture the back catalogue while
acquiring new material that would save
the company from stagnation. Binder’s
term ended abruptly last July but her
two commissions survive her. The first,
by former comic book creator and 2004
Olympics opening ceremony director
Dimitris Papaioannou, had its UK pre-
miere on Thursday. The run is sold out
and expectations were high.
Papaioannou’s Since She pays con-
scious homage to any number of Bausch
tropes, most particularly those found in
1986’s Viktor, the company’s tribute to
the city of Rome, which is performed
within Peter Pabst’s massive earthen
ramparts. Tina Tzoka’s set for Since She
mimics Pabst’s set with a huge cliff of
crumbling foam mattresses.
Thanasis Deligiannis does his best to
ape the playful playlists of Matthias
Burkert (Bausch’s regular musical
director), but the result is a feeble and
derivative mix of everything from Tom
Waits to Khachaturian’s Masquerade
waltz (Viktor again) plus a great deal of
doomy whooshing.
Most Bausch fans could probably cob-
ble together some sort of pastiche given
access to the Wuppertal props cupboard
and dressing-up box and Papaioannou
litters the stage with any number of
familiar tropes. The cast of 16 enter
from the first wing using dozens of
chairs (Café Muller, Viktor) which form a
rickety-rackety bridge to the far side of
the stage. The gentlemen are in suits, the
smiling ladies wear killer heels and bias-
cut eveningwear (Bausch passim).
A woman pours water, a smoking man
spit-roasts a small greyhound.
There is enough gratuitous nudity for
a Brexit protest, with artful corpses slid-
ing down the foam rubber slag heap and
a man trotting about with a cowbell
scrotum. The smut quotient was further
increased by a brief cookery demonstra-
tion in which our chef knocks up an
omelette from a soupçon of “semen”
and some of her own excrement (much
kindergarten merriment in the stalls).
As if sensing that his vignettes lack the
impact of Bausch’s greatest hits — the
girl on the swing, the dress made from
balloons — Papaioannou sets up multi-
ple centres of interest, a new sight gag
gearing up just as you weary of the last.
The result is scrappy and unfocused.
The 90-minute piece was created in
the approved Bauschian manner in
workshops with the performers, many
of them recruited since Bausch’s death.
You can understand their hunger for
new material but Papaioannou offers lit-
tle more than a sincere but bloodless
Bausch-by-numbers.
To February 25, sadlerswells.com

Monday 18 February 2019
Having all but defeated the opposition thanks to Russia and Iran, Bashar al-Assad must now rebuild
the devastated country. But western powers will not fund any efforts that keep him in power.
I
n early 2017, a soft drinks company
started building a factory in an
industrial zone outside Damascus,
close to the then rebel-held town of
Douma in Eastern Ghouta. The site
“wasn’t expensive,” says its young Syr-
ian company manager who asks not to
be named. “But it was dangerous.”
Douma is close enough to Damascus
that rebels fighting President Bashar al-
Assad’s regime would lob mortars into
the Syrian capital, making it a key oppo-
sition stronghold during the civil war.
The final reckoning in Douma was
brutal. A Russian-supported siege and
air war on the rebels controlling the
town, and the thousands of civilians
inside, lasted for two months until April
2018. The Syrian army is accused of
using chemical weapons, with 70 people
reportedly killed by chlorine gas in one
incident. Overall, 1,600 died in the East-
ern Ghouta offensive. Bombs crushed
neighbourhoods and factories.
The loyalist company manager, who
has a relative on sanctions lists, says he
“used to see the shootings” during the
worst of the siege. Nonetheless, the
company carried on building. “Life did
not stop in Syria,” he says, dismissing
the risks to his workers.
Just months later he was producing
fizzy drinks in a factory symbolic of
Syria’s next battle — fixing the battered
nation’s broken economy.
‘Everybody has been saying
that 2019 is going to be a
dire year for Syria
economically and people
are going to suffer as a result’
The crushing eight-year war laid
waste to Syria’s industrial cities and
crippled its workforce. Now deepening
poverty and deprivation are undermin-
ing the regime’s apparent military vic-
tory. While few dare to criticise the
authoritarian regime, gas shortages this
winter sparked discontent and some
Syrians quietly question why their eco-
nomic situation is worsening.
“Business is weak,” says Ayman, 52,
working in a Damascus hardware store.
“We thought everything was going to get
better because they solved the crisis, but
the opposite [has happened].”
Competing international interests
complicate the task of reviving the econ-
omy. While Mr Assad’s allies, Russia and
Iran, swung the military battle deci-
sively in his favour, they are not com-
mitting resources to resuscitate the
country. Determined not to bolster the
regime, western countries are tighten-
ing sanctions and withholding major
reconstruction funding.
The regime’s military campaign has
recaptured most of Syria in the past two
years. But the war’s cost is an estimated
half a million dead, some 3m people liv-
ing with permanent disabilities and the
biggest displacement crisis since the
second world war, with over half of
Syria’s population, 21m in 2010, having
fled their homes. While fighting has
ebbed, some provinces — like Idlib, the
last opposition stronghold — are still
wracked with violence.
Businessmen close to the regime are
accused of profiteering from the con-
flict. And critics fear overseas money for
reconstruction — the bill for which is
estimated at anywhere between $250bn
by the UN and $400bn by the regime —
would serve to enrich them further.
The proportion of Syrians in extreme
poverty, those living on less than $1.90
per day, has more than doubled to 69
per cent since 2011, according to a UN-
backed study. As many as 56 per cent of
the country’s businesses surveyed by
the World Bank have either closed or
relocated outside of Syria since 2009.
Unemployment, under 10 per cent in
2010, rocketed to over 50 per cent by
2015, the most recent data.
Surging living costs, wage stagnation
and people’s depleted purchasing power
means that Syrians are struggling to
afford the basics. “The government is
running out of options,” says Ahmed, a
Syrian industrialist. “Everybody has
been saying that 2019 is going to be a
dire year for Syria economically and
people are going to suffer as a result.”
Parallel lives
With the middle class all but disap-
peared in many areas, Damascus
reveals glaring disparities between insu-
lated elites and everyone else. Bright
storefronts and busy shisha bars in well-
heeled areas contrast with queues for
subsidised bread and people trying to
replace empty gas canisters.
Rima Kadiry, minister for labour and
social affairs, insists the cash-strapped
state is supporting commerce: “Finan-
cial resources are limited but . . . we are
directing the biggest mass of any availa-
ble funding to restore production and
revive the Syrian economy.” This
includes support for the agriculture and
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By Chloe Cornish, Asser Khattab and Andrew England
Syria’s reconstruction dilemma
Off the rails: a industrial sectors, with priority to
train passes microfinance projects, small businesses
bomb-damaged and entrepreneurs, she says, without
buildings and giving specific numbers.
carriages as it Accurate data is scant across Syria’s
moves through provinces, but the World Bank esti-
Damascus. mates cumulative losses in gross domes-
Right, patients tic product between 2011 and 2016 at
wait to be $226bn, some four times Syria’s 2010
examined in a GDP. For companies, “it is a success to
dilapidated have [only] contracted by two-thirds to
hospital in three quarters because the objective of
Douma last year the last seven years has been to survive,”
Omar Sanadiki/Reuters
says Marwan, a Damascus business-
man. “So many went bankrupt.”
Where legitimate companies col-
lapsed, a new class of war entrepreneur
rose, profiting from trafficking guns,
people or drugs to controlling trade
between regime and opposition fronts.
Trucks carrying twisted steel and
rusting barrels through devastated
Eastern Ghouta offer the clearest sign of
this war economy. “Recycling what the
war has left behind is one of the most
common industries now,” says Ammar
Youssef, a pro-regime economist. “Man-
ufacturing steel taken from destroyed
buildings is one example.”
Looting was carried out by militias on
all sides. So much copper wiring was
ripped from buildings and melted down
that by 2014, copper products had
become Syria’s fourth largest export,
Timeline 2011 Beginning in rural Dera’a in the
From south-west, Syria erupts in peaceful
pro-democracy demonstrations that
protest to are violently suppressed by the
uneasy regime. The US calls for President
calm in Bashar al-Assad to step down.
devastated International sanctions soon follow.
country 2012 With a civil war under way rebel
groups are in control of swaths of
Syria and even take part of Aleppo,
the second city.
2013 Chemical weapons attacks in the
suburbs of Damascus are widely
blamed on the regime. The west
threatens military intervention but
does not go through with it.
2014 Isis, which has emerged as the
strongest Sunni extremist group in
Syria, bursts across the border and
invades parts of Iraq.
2015 Regime ally Russia deepens its
military involvement, launching its first
air strikes on rebel areas. Germany
opens its door to Syrian refugees as
the crisis spills out across Europe.
2016 Pro-regime forces, including
Russian jets and Iran-backed militia,
unleash a ferocious campaign on
rebel-held areas of Aleppo.
2017 More chemical attacks blamed on
the regime prompt western air strikes,
as pro-regime forces recapture areas
around Homs and Damascus.
2018 Pro-regime forces take back the
south-western region, leaving the
northern province of Idlib as the final
opposition bastion.
according to the World Bank. Mr
Youssef values the looting economy at
$800m a year.
“There are some warlords who made
a lot of money,” says Fares Shehabi, a
pharmaceutical factory owner and MP
who heads the chamber of industry in
the city of Aleppo — once an opposition
stronghold. “When people were in need,
people made money out of this . . . No
one likes to see this mafia flourish.”
He says politicians are tackling the
issue. But, complains Marwan, a busi-
ness owner, “the regime turns a blind
eye. It’s rewarding those loyal business-
men, local politicians, [intelligence],
the entire pro-regime apparatus.”
Collapse of society
In 2011, mass protests demanding jobs
and democracy toppled dictators in the
Arab world — regimes changed in Tuni-
sia and Egypt, violence felled Muammer
Gaddafi in Libya. In Syria, Mr Assad was
determined to protect his family’s four-
decade rule with a brutal clampdown.
By 2014 Isis was wreaking havoc across
Syria and Iraq.
Before the uprising, Mr Assad had
hinted at tentative steps to open up the
economy. Decades of closed economic
policies under his father had established
strong patronage networks dependent
on the government. But rather than
redistributing wealth, the reforms wid-
ened opportunities for crony capital-
ism, a system which critics say has been
exacerbated by the conflict.
Nor has the regime relaxed its hold on
key industries such as oil or construc-
tion, says Hassan, a business owner: “All
the strategic sectors were and will con-
tinue to be controlled by the govern-
ment or government-related people”.
It means that countries interested in
stabilising Syria face a dilemma: how to
help its people rebuild without strength-
ening a system so many rejected in 2011.
The US and most European nations
are against normalising relations or
loosening sweeping financial sanctions
imposed to pressure Damascus over
human rights abuses. Moscow wants
western countries to foot some of the
bill, but they maintain cash for rebuild-
ing is contingent on a political settle-
ment. With the opposition decimated
that is unlikely. “Damascus is allergic to
any political process under interna-
tional auspices that threatens its own
continuity and survival,” says Sam Hel-
ler, at the International Crisis Group.
Damascus diplomacy
Despite western lobbying, Arab states —
many of which initially backed insur-
gent groups trying to overthrow Mr
Assad — are now leaning toward Damas-
cus. Lebanon and Jordan which between
them host about 1.6m Syrian refugees
hope revived trade might ease domestic
economic pressure. Gulf states want to
counter Tehran’s presence on their
doorstep, fuelling speculation that they
might use petrodollars to buy influence
through reconstruction.
With President Donald Trump’s Mid-
dle East policy in disarray amid uncer-
tainty over how quickly the US will
withdraw its forces from Syria, it looks
like a pragmatic thaw. Sudan’s president
Omar al-Bashir, facing his own large-
scale protests, became the first Arab
League leader to visit Damascus since
the body ejected Syria in 2011. The
United Arab Emirates reopened its
Damascus embassy then hosted a Syr-
ian trade delegation, led by sanctioned
steel magnate Mohammad Hamsho.
Bahrain intends to reopen its embassy.
‘Some warlords made a lot
of money. When people
were in need, [others] made
money . . . No one likes to
see this mafia flourish’
Jordan unlocked a key trade corridor
with Syria late last year.
Emile Hokayem, senior fellow for
Middle East security at the Interna-
tional Institute for Strategic Studies,
warns the strategy could “provide eco-
nomic benefits to the regime that will
fuel the predatory economy” but fail to
deliver any political returns.
Since 2011 the US, EU and UN have
imposed sanctions on imports like cer-
tain fuels, as well as Syrian individuals
accused of financially supporting the
$250bn regime. Brussels doubled-down in Janu-
To reconstruct Syria ary, issuing fresh measures against 11
says the UN. businessmen. The US Congress has
Damascus claims it passed legislation to broaden existing
will cost $400bn
sanctions measures to include non-US
citizens who deal with the Assad regime.
6 But those Syrian businesses that say
Years of continuous they are not regime-aligned worry these
work just to clear the expansive sanctions could hit anybody
debris from Aleppo,
Syria’s second city involved in reconstruction.
Gulf-based construction companies
are unlikely to risk America’s wrath.
>500,000 With regime allies Russia and Iran
People died during showing little willingness to spend, and
the eight years of
civil war. More than China wary of investing, it is unclear
10m have been who will pay to rebuild Syria apart from
displaced the Syrians themselves.
7
War damage Eight years of civil war
have wrecked Syria’s industrial cities
and crippled its workforce
Conflict gains Critics fear that post-
war reconstruction contracts will go to
companies close to the Assad regime
Thaw in relations UAE and Bahrain are
among the Arab countries to have
reset diplomatic links with Damascus
Sanctions suit tycoons with the
strongest regime links, says Steven Hey-
demann, Middle East Studies director at
Smith College in the US. With greater
resources and deeper official connec-
tions, “the Rami Makhlouf networks
have access to a much deeper tool kit to
get around sanctions,” he says. Mr
Makhlouf, a cousin of Mr Assad and on
both EU and US sanctions lists, has lev-
eraged his connections to build an
empire from telecoms to real estate.
Even without sanctions, doing busi-
ness is hard. Company owners shuttling
to Syria from Beirut, London or Paris
describe a murky commercial environ-
ment and minefield of challenges: from
loss of skilled workers to endemic cor-
ruption, pulverised infrastructure, vio-
lence and predatory state bodies.
Companies complain about high
taxes despite performing weakly or
making no money, of obligatory dona-
tions to non-governmental organisa-
tions acting as unofficial state organs,
and increasing customs checks widely
viewed as shakedowns. Meanwhile Ira-
nian and Russian companies, including
Stroytransgaz, are accused of muscling
in on Syria’s key natural resources,
securing lucrative phosphate, oil and
gas and electricity contracts. Asked
what chances there were for business in
Syria now, one entrepreneur replies:
“The cake has been divided.”
Even if bosses return, employees are
often gone — “fled or dead” according to
local gallows humour. Conscription for
men aged 18 plus has further depleted
the skilled workforce.
Damascus’s great rival, Aleppo,
reveals the magnitude of mending
Syria’s economy. Bombing and looting
has destroyed hundreds of factories in
the former textile industry powerhouse.
It could take six years of continuous
work just to clear 14.9m tonnes of
debris, estimates the World Bank.
Idlib, now dominated by jihadist
fighters, lies just west of Aleppo. And
despite the regime’s military trium-
phalism, security in Aleppo remains
elusive.” Mr Shehabi admits it is hard to
lure industrialists back: “A lot of people
will tell you they [still] don’t feel safe.”

8 ★
MONDAY 18 FEBRUARY 2019
Trump’s ‘emergency’ sets
a dangerous precedent
US judiciary must uphold Congress’s right to make the law
Shortly after declaring a national emer-
gency, Donald Trump boarded Air
Force One for Mar-a-Lago. It was a fit-
ting next step to an emergency that was
always grounded more in Mr Trump’s
imagination than reality. Had it been
genuine, Mr Trump would not have
flown off for a weekend of golfing. Yet
in his rambling announcement, Mr
Trump had already undercut his own
case. The emergency was not strictly
necessary, Mr Trump admitted. It was
motivated by the next year’s presiden-
tial election in which Democrats would
try to defeat him by saying he did not
keep his promises. The main one of
these was his vow to build a border
wall. “I didn’t need to do this, but I
would rather do it [build the wall]
much faster,” said Mr Trump. There, in
a nutshell, was the basis on which the
US courts should declare Mr Trump’s
move illegal. On his own terms, the
emergency is smoke and mirrors.
There are also basic legal grounds to
reject Mr Trump’s move. The US con-
stitution makes it clear that it is Con-
gress, not the president, which controls
the purse strings. It is the president’s
job to faithfully execute the law. Under
the law, which Mr Trump simultane-
ously signed on Friday, Congress allo-
cated $1.375bn for border security. By
vowing to divert up to $21bn from
other government departments to
build a wall, Mr Trump is explicitly
breaching the US separation of powers.
Such a move could pass muster
where there is a genuine national secu-
rity threat. Mr Trump will have a tough
job explaining how the US-Mexico bor-
der situation suddenly qualifies as
such. Illegal immigration into the US
has fallen sharply in the past decade to
just over a fifth of where it was at its
peak.
Moreover, native-born Americans
are far more likely to commit a crime
than newcomers, illegal or otherwise.
The chastening fallout of
Amazon’s hunt for HQ2
Companies and politicians can learn from the ill-fated New York deal
Jealous chief executives regard Ama-
zon’s founder Jeff Bezos with awe for
the way he convinced Wall Street inves-
tors to forswear short-term profitabil-
ity in favour of the promise of longer-
term growth and benefits, in the ecom-
merce group’s early days.
He has singularly failed to work the
same magic on Amazon’s critics in the
borough of Queens, a 30-minute sub-
way ride from New York’s financial
centre. Amazon withdrew its plan to
build a satellite headquarters in Long
Island City last Thursday, following a
vocal popular backlash against the
incentive-rich deal it had struck with
state and city political leaders.
Opponents of the plan, led by pro-
gressive Democrat Alexandria Ocasio-
Cortez, are celebrating. The arrogant
way in which the group invited bids
from cities for “HQ2” endeared it to
few. The decision to choose the obvious
locations of relatively wealthy New
York and Washington DC (where Ama-
zon still intends to invest) alienated
needier candidates.
Throughout the race, Amazon
behaved less like a business and more
like a popular sports franchise, offering
to bestow the bounty of its presence on
host cities that demonstrated their
gratitude with financial favours.
The difference is that football and
baseball teams command a devotion
from fans that usually endures through
good times and bad. The reputations
and fortunes of businesses are more
changeable, which means their leaders
need to be more finely attuned to shifts
in their fortunes. Coincidentally, up the
US east coast in Boston, General Elec-
tric — which once enjoyed the reputa-
tional aura later acquired by Big Tech —
has just had to scale back its headquar-
ters plan to fit its newly diminished
finances. Under the new plan, Massa-
chusetts will recoup state support orig-
inally offered for GE’s move to the city.
Most illicit drugs come through legal
border crossings. And so on.
It is possible Mr Trump actually
wants the US courts to throw out his
emergency. That would give him a
springboard to run against meddling
judges and politicians in 2020. “The
people against the system” would have
a Trumpian ring to it. It would also
ensure Mr Trump continues to domi-
nate the conversation. As long as it is
about him, he is winning.
But that is no reason to let him act
with impunity. It would set a chilling
precedent if the courts upheld Mr
Trump’s action. If a US president can
manufacture a national crisis from a
modest flow of asylum seekers, he
would gain licence to declare a perma-
nent one. Almost anything would qual-
ify as long as it passed the test of what-
ever the president saw fit. Richard
Nixon infamously declared: “Well
then, if the president does it, it’s legal.”
America’s system is based on the prin-
ciple that laws are bigger than people.
Mr Trump cannot be an exception.
It is fair to point out that US presiden-
tial authority had grown dramatically
long before Mr Trump took office.
Even Barack Obama resorted to what
he called the “pen and phone” strategy
of issuing executive orders when Con-
gress refused to act.
Given the entrenched culture of grid-
lock on Capitol Hill, presidents are
likely to interpret their powers more
expansively as time goes on. That is all
the more reason for the courts to police
the line. In this instance, Congress had
broken the legislative impasse. The
system worked as it was designed. That
Congress did not approve the amount
of border funding Mr Trump wanted is
neither here nor there. Congress is not
an advisory body. It has the sole prerog-
ative to make law. The US courts must
do the right thing and declare Mr
Trump’s emergency illegal.
The wider technology sector should
read Amazon’s retreat — and GE’s hum-
bling — as cautionary tales. Mr Bezos
has recently earned plaudits for his
brave exposure of an alleged political
shakedown by a tabloid allied to Don-
ald Trump. But if he and his lieuten-
ants, readying themselves for a regula-
tory “techlash” in Washington, can
misread the local politics of Queens so
badly, there must be a question how
they will fare on Capitol Hill.
That said, the populist left’s celebra-
tions in New York could also be prema-
ture. The city is still well placed to
attract businesses. But Amazon’s
investment would have been particu-
larly welcome, reinforcing New York’s
position as a technology hub.
Amazon itself was nothing if not con-
sistent: its case was built on the
assumption New York needed Amazon
more than Amazon needed New York.
When protesters made clear that was
not the case, it pulled out. The backlash
may now deter other potential inward
investors. If the Amazon-less economic
reality disappoints fickle New Yorkers,
the same critics and campaigners will
then find themselves under fire.
The best that can emerge from this
debacle is that chastened politicians
and companies rein in their instincts to
haggle over economically inefficient
tax breaks and investment incentives.
Next time such an opportunity
arises, businesses will be cautious not
to raise expectations in the way Ama-
zon did. Pro-business politicians will
have to do a better job of preparing the
ground so that support for such deals
does not disintegrate. Both parties may
conclude it is more appropriate, more
certain, and perhaps even cheaper, to
pitch or select projects based on firm
evidence of community commitment
rather than as part of an over-hyped
beauty parade, tainted by sweeteners
and subsidies.
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Letters
Gandhi warrants a similar level of critical scrutiny as Churchill
While there has been a backlash over
comments by Labour party shadow
chancellor John McDonnell about
Winston Churchill (February 14), can I
ask that a further debate is applied to
Mahatma Gandhi? Both men are
honoured with statues outside the
Houses of Parliament in London and
revered for their bravery, but now that
Mr McDonnell has questioned
Churchill’s integrity can Gandhi face
the same level of scrutiny?
Gandhi was a man who worked
tirelessly to unite the peoples of India,
Socialist quicksand will
suck down a country
A growing segment of the left-of-centre
electorate, often young and disaffected,
is easily roused by progressive
shibboleths and comfortable with a
feel-good approach to complicated
problems rather than fact-based
analysis (Opinion, February 14).
Socialism is attractive to these voters,
who do not yet understand that this
form of governance is the quicksand
that sinks the historically illiterate.
Of course, if you are politically
energetic and dissatisfied with the
status quo, if you are brimming with
the conceit that, as Barack Obama
believed, “we are the ones we have
been waiting for”, if you have been
taught that capitalism ravages and rigs
America, if the profit motive upsets the
applecart of participation trophies, if
government-mandated equal outcomes
are superior to government-mandated
equal opportunities, then you may
believe, even if Margaret Thatcher did
not, that the socialist enterprise will
never run out of other people’s money.
Newly elected progressive Democrats
have filled the policy larder with all
manner of freebies — Medicare for all,
college tuition, student loan
forgiveness, universal basic income,
uniform minimum wage, guaranteed
employment for all — and why not?
Many of our young have indicated that
socialism and its handmaiden at
crunch time, autocratic governance,
may be worth a shot and, if the ageing
centrist Democrats cannot stay the
fantasy with commonsense, may try to
float the leaky ship once again.
It is not enough for realists to assume
that the nascent socialist movement
will sink with the weight of history. A
free lunch is a mighty tasty meal, after
all, even if it bankrupts us in time.
Paul Bloustein
Cincinnati, OH, US
Twitter campaigns tell us
a little about politicians
Janan Ganesh’s evaluation of the
Democratic field (along with the policy
drifts that candidates undergo for their
base) and role a moderate might play
was uplifting (Opinion, February 13).
Since the majority of the US
population is more towards the middle
than the extremes one would hope that
a moderate might make it on some
party ticket. Howard Schultz’s
positions seem to be moderate but
there is no reasonable hope that his
name will appear anywhere but next to
an “Independent” banner.
Mr Ganesh’s article goes on to discuss
how the Democrats stuck to a simple
message to win back the House. One
has to wonder, however, is it the goal to
A defence of
unpopular
spending cuts
Book review
Chris Giles
Austerity: When It Works
and When It Doesn’t
by Alberto Alesina, Carlo Favero
and Francesco Giavazzi
Princeton, $35
regardless of ethnicity and religion. He
was especially supportive of the Indian
Muslim community, and his statement
that “India does not belong to Hindus
alone” is testament to his belief that
India should accommodate the
differences among its people.
However, during his time in South
Africa, he referred to black Africans as
“Kaffirs”, an extremely derogatory and
wretched term. Other comments from
him include a “general belief seems to
prevail in the colony that the Indians
are a little better, if at all, than savages
Feet of clay: Gandhi’s statue outside
the Houses of Parliament in London
win at any cost, often by posing a
sound-bite driven campaign, or is it to
win based on all the multitude of
policies that a party “secretly” wishes
to enact?
Sadly, since most communication is
by 140 characters or social media
posts, it is unlikely that the population
at large will ever know what they are
electing. To paraphrase Nancy Pelosi,
we have to elect people into office to
see what they really want to do. We
then have to experience what is known
as “buyers’ remorse”.
Stephen Horwitz
Bethesda, MD, US
New York is the loser from
Amazon’s change of mind
Alexandria Ocasio-Cortez and other
New York City-connected politicians
rejoiced because they have caused
Amazon to cancel plans for a New York
City headquarters and 25,000 new jobs
promised to go along with it (Analysis,
February 15).
The stated objection was that the city
allegedly promised Amazon $3bn of
benefits. Never mind that those jobs
would have generated $1.25bn of
income a year in near perpetuity, and
that money would have circulated
again and again in the local economy.
Nor does it account for ancillary
business-related employments.
So it appears that the headlining
politicians have acted in an almost
unimaginably destructive fashion, or
are simply mathematically challenged.
Is this a sign of what is to come?
In the event, it seems clear that New
York City is no longer open for
business.
Roger W Kirby
Millbrook, NY, US
After the international backlash
against austerity, this is the
counterblast. In defending austerity
policies, Alberto Alesina, Carlo Favero
and Francesco Giavazzi cannot in any
way be accused of following fashion.
Budgetary orthodoxy has rarely been
as unpopular among politicians,
whether it is US president Donald
Trump’s lack of concern over the
deficit-raising effects of his tax cuts or
the Italian government’s
determination to give itself more fiscal
flexibility than EU rules dictate.
In academic circles, too, the
direction of travel has been one way in
recent months. Former chief
economist of the IMF Olivier
Blanchard’s presidential address to the
American Economic Association
argued that the economics profession
has over-estimated the cost to society
of government debt, and professor
Kenneth Rogoff of Harvard University,
a vocal advocate of austerity after the
financial crisis, recently wrote that it
had never been obvious why Britain
would want to reduce its debt burden.
This book is timely in offering an
alternative view. Its aim is to counter
what it calls “the popular anti-
austerity argument” that tax increases
and spending cuts cause recessions. It
will not — and should not — convince
all readers of the need for sound
budgeting and reduced public
spending when deficits get out of
control, nor of the popularity of such
policies. But it is valuable as a
corrective to those economists who
are ditching previously held positions
If you are not satisfied with the FT’s response to your complaint, you can appeal
to the FT Editorial Complaints Commissioner: complaints.commissioner@ft.com
or the natives of Africa” and “about the
mixing of the Kaffirs with the Indians, I
must confess I feel most strongly”.
Whatever the period, these are racist
comments.
Gandhi wanted to differentiate his
community from that of the Africans,
emphasising that whites and Indians
originated from the same Aryan stock,
and should not be grouped with
Africans.
In October 2019 India will celebrate
the 150th anniversary of Gandhi’s
birth. While the nation remembers a
Stock buyback proposal
is an attack on democracy
Senator Marco Rubio’s proposal to raise
the capital gains tax on corporate stock
buybacks is flawed on practical and
moral grounds (Opinion, February 14).
First, no well-managed corporation
would forgo any potentially profitable
capital investments merely to reward
its shareholders by shrinking its
capitalisation in the hopes of boosting
its stock price, which, by the way,
studies have shown is frequently not an
effective outcome.
Corporations in the US often rely on
investments made by other companies,
usually abroad, to supplement their
capacity needs, reduce costs and have
better capability to serve overseas
customers. Also, today’s economy is no
longer dependent for growth on
building factories. Much corporate
capital investment is spent on research
and development. If there are not
sufficient investment opportunities
available, companies have a moral
obligation to return excess cash to
shareholders, who can then decide how
to profitably redeploy the funds.
Second, using the funds to raise
wages is impractical as this would
impair a company’s position and
reduce profits. Wages and selling prices
are determined by competitive forces,
not arbitrary decisions.
Third, since most US equities are
owned by pension funds, foundations,
endowments and other non-taxed
entities, there will be no tax collected
from buybacks regardless of the rate.
Finally, Mr Rubio’s proposal appears
to be a targeted attack on private
property, the sanctity of which is a
fundamental precept of our
democracy.
Stefan D Abrams
Managing Member, Bryden-Abrams
Investment Management, New York, US
EU rules on data are clear
about employee consent
The article on “staff surveillance”
(February 14) implies that one of the
keys to being able to use and exploit
employees’ personal data is to get their
“consent”.
The EU’s General Data Protection
Regulation says consent will not
normally be valid if there is an
imbalance of power (such as in the
employment context), but that
member states may legislate for
circumstances where it can be.
That the UK has chosen not to is
surely a strong indication that
parliament thought there was no good
reason to process data in this way.
Jon Baines
Data Protection Adviser, Mishcon de Reya,
London WC2, UK
on public finances.
The three professors are known for
their views that when countries have
amassed unsustainably large budget
deficits, the remedy should be less
public spending. Alesina, for example,
is associated with “expansionary fiscal
contraction”, meaning that austerity
can increase growth rather than
depress the economy.
The big idea here is that when
budget deficits need to be reined back,
it is much better to do so with
spending cuts than tax increases. The
tax route, they argue, proves austerity
critics right, generates recessions and
is often counterproductive. Cutting
public spending restores confidence in
business that the budget problem will
be sorted. It tends to foster investment
and economic growth, leading to quick
overall recovery.
The book’s arguments are based on
examining a large number of past
episodes of austerity, ranging back to
the 1970s, and a new approach to the
data. Having been perhaps the most
influential economists in the world a
decade ago on deficit reduction, the
authors’ techniques came under heavy
fire after the financial crisis for not
sufficiently disentangling correlation
from causation. When economies do
well, tax revenues rise and public
spending falls, so there is a natural
correlation between deficit reduction
and good economic performance. But
causation flows from good economic
performance towards lower budget
deficits rather than the other way.
In this book, instead of looking for
Monday 18 February 2019
Email: letters.editor@ft.com
Include daytime telephone number and full address
Corrections: corrections@ft.com
man who did so much for all Indians,
let us also not forget what he thought
and said about Africans.
I hope prime minister Narendra
Modi can use the celebratory occasion
to extend an apology to black Africans
for past comments and assure them
they are welcome in India. Perhaps Mr
Modi can go further by updating
Gandhi’s quote “India does not belong
to Hindus alone” to “India belongs to
everyone”.
Rajiv Radhakrishnan
Pinner, Middlesex, UK
Artificial deadlines will
lead to a worse Brexit
We keep hearing that “the public just
want politicians to get on with Brexit”
(February 15).
This reminds me of my solicitor days
when overconfident client boards
directed their minions to seek altered
contract terms by triggering a break
clause and then, later, with an
unpleasant deadline looming and vital
questions unanswered, blamed the
advisers and counter parties.
Occasionally the tactic worked. Often
it ended in an unsatisfactory outcome.
Typically, pride was swallowed and
deadlines were withdrawn.
Sometimes terms were realistically
agreed. But usually another board
meeting decided to ask for the status
quo.
Steven Fogel
London NW11, UK
The MoD could sink
shipbuilding industry
You outline Britain’s muddled
approach to enabling vessels required
for use by the Royal Navy to be built in
Britain, and preserving jobs in this
country at the same time (February
11). The decision to put this significant
contract out to international tender is
astounding.
Unions and shipbuilders alike
have urged that the vessels to be built
under this contract should be classed
as fleet solid support ships and
therefore complex warships, enabling
them to be built in the UK, and exempt
from EU laws preventing
protectionism.
Their equivalents are built by France
and Italy as warships, allowing the
work to remain within national
borders. These nations seem to have no
problem with the EU laws that the
Ministry of Defence appears to be so
precious about.
With the Appledore shipyard in
Devon, which has built ships for the
Royal Navy for well over a century,
likely to close at the end of March
without any new orders, is it too
much to expect joined-up thinking
at the MoD to keep valued jobs in the
UK and save a valuable shipbuilding
asset?
Rodney Reid
London W5, UK
Correction
c The axis titles were incorrectly
inverted in the Graphical Insight
column on February 11. The horizontal
axis title should have been “births per
1,000 women” and the vertical axis title
should have stated “unintended births”.
past moments when budget deficits
have decreased significantly, the
authors have searched the history
books using a “narrative approach” for
moments governments have explicitly
declared an austerity drive.
This is one of the main strengths of
the book, but also its greatest
weakness. Students of history might
find surprising inaccuracies. Take the
UK. Its 1990s austerity period
included a large component of tax
increases and had a very successful
outcome, but barely gets a mention.
Economic performance after the
largely expenditure-driven austerity
of the 2010s has been far worse, but
this is cited as a key example of
success. Statements that the IMF
criticised the UK’s austerity plan
“harshly” cannot be reconciled with
contemporary IMF assessments that
the UK government’s plan was
“necessary to enhance credibility and
ensure fiscal sustainability”.
In the end, the arguments against
the critics of austerity are more
convincing than the policy
prescriptions. Their knee-jerk call for
lower public expenditure is justified
on the grounds that it distorts
economic behaviour less than
taxation, but they specifically exclude
any consequences of lower spending.
Read this book as an antidote to the
calls for governments to give up on
fiscal discipline, but do not be fooled
by the authors’ claims to be free from
their own ideologies.
The reviewer is FT economics editor

Monday 18 February 2019
What Britain should do after a no-deal Brexit
europe
Wolfgang
Münchau
T
he two biggest factors con-
spiring in favour of a no-
deal Brexit are the poor
choice of arguments by
those who want to stop it,
and the somewhat naive belief that a no-
deal Brexit can be stopped by the sheer
force of a parliamentary amendment.
The main arguments against a no-
deal Brexit today seem to be similar to
those mounted during the failed 2016
referendum campaign: think of images
of lorries tailing back all the way into
your backyard, empty shelves and tum-
ble weed blowing through deserted cit-
ies. Be very afraid, is the message.
I agree that a no-deal Brexit is a bad
idea. It could end as a human tragedy for
many people. There will have to be a
hard border in Ireland immediately.
Many people will lose their jobs as a
Trump’s ill-timed rift with Europe
business
Rana
Foroohar
D
onald Trump may be about
to fight the wrong trade war
— again. Even as the US
president claims to be mak-
ing real progress with trade
negotiations in China, the commerce
department is set to give him confiden-
tial recommendations on his Section
232 auto investigations, which could
allow him to use national security as
cover for new tariffs on foreign vehicles.
Mr Trump has 90 days to act on them,
but many insiders believe there’s a good
chance he will act sooner than that and
launch auto tariffs on the EU and Japan.
It is hard to overstate what a disaster
this would be. Mr Trump is touting a
“breakthrough” on China trade because
he wants to be seen as a “dealmaker”.
But this is an unconvincing feint — the
tensions between the US and China are
big, existential, and will last for decades.
He has reason to take the economic heat
off both countries: China’s slowdown
has hit US companies including Apple.
Meanwhile, Mr Trump may be about
to use steel and cars as an awkward way
to stumble into a free trade agreement
negotiation with Europe, possibly to try
to get rid of longstanding transatlantic
trade issues, such as EU agricultural
subsidies, which he sees as “unfair”.
While there is never a good time for a
trade war with allies, this timing is par-
ticularly bad. Europe has its subsidies
and industrial favourites, as does the
US. But there is actually a huge opportu-
nity at this moment for a new transat-
lantic alliance in a number of areas that
would benefit both the US and the EU —
particularly in relation to China, which
is the real existential threat to the global
trading system.
Take the auto industry of the future.
While Mr Trump wants to slap tariffs on
Plastics recycling is a looming threat to oil company profits
Christof
Rühl
T
he oil industry is no
stranger to environmental
discussions. Its long-term
forecasts have focused for
years on how global warm-
ing and the rise of electric vehicles may
reduce the world’s appetite for crude oil.
Yet the sector has spent far less time
thinking about another change that
could have just as large an effect as elec-
tric vehicles: the war on plastic. As busi-
nesses eliminate plastic straws and bags,
and governments act to reduce disposa-
ble packaging, this will have profound
implications because plastic, of course,
is ultimately made of crude oil.
Transportation currently gobbles up
more than half of global oil consump-
tion. The petrochemical industry —
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direct or indirect consequence. It could
be the end for many small businesses
that trade with the EU. Surely, it must be
right to give people enough transition
time to get their affairs in order?
The legal status of 5m British and EU
citizens would all of a sudden be in ques-
tion. The real disruption will not be to
gross domestic product, but to lives. The
queues will eventually disappear. The
shelves will fill up with prosecco once
traders figure out how to fill out a cus-
toms form. Most technical problems can
be managed, but the human impact will
last.
I disagree with those who are confi-
dently ruling out no deal, like the Brexit
negotiator who had too many drinks in a
Brussels hotel bar. The probability of a
hard Brexit remains higher than most
people think.
Even if Theresa May, the prime minis-
ter, were forced to ask for an extension
to the Article 50 divorce process, the EU
is unlikely to grant it beyond the end of
June.
At this point, everybody will have
completed their no-deal preparations.
The shock and horror, still present now,
will have worn off. And furthermore, it
old-line cars and trucks, the automobile
industry in both America and Europe is
desperate to create common 5G stand-
ards for smart cars, and an autonomous
vehicle industry that can compete with
either Google or Waymo’s efforts.
That will almost certainly require an
industry-wide global partnership to be
established between the US, the EU and
Japan, since no single producer can go it
alone. While Mr Trump is making such
an alliance harder, China moves ahead
in the race to set standards.
Then there is the common ground on
Big Tech. There is plenty of evidence
that private and public interests on both
sides of the Atlantic are desperate to cre-
ate clear, common rules. This includes
the German Facebook ruling which
links privacy and competition in ways
that are of interest to US regulators, and
the state of California’s calls for “data
dividends” in which people get paid by
While there is never a
good time for a trade war
with allies, this moment
is particularly bad
big technology companies for their per-
sonal data. Multinational companies
supporting Europe’s General Data Pro-
tection Regulation have called for a US
version of the same.
A common rule book would be a huge
boon for industry in both regions. While
trade in traditional goods and services
has been flat for several years now,
cross-border data flows grew a whop-
ping 148 fold from 2005 to 2017, accord-
ing to a new McKinsey Global Institute
Analysis. Amazingly, the only World
Trade Organization rules governing
data flows are for financial services.
That is one reason why Australia and
Japan are pushing negotiations to create
some cross-border rules. This offers yet
another opportunity for the US and
Europe (both of which are involved in
the negotiations) alongside many other
liberal democracies, to set the ground
which takes crude oil as a feedstock and
converts it into the chemicals from
which plastics are made — absorbs less
than 15 per cent. Yet it is expected to
deliver half of global oil consumption
growth to 2040.
The International Energy Agency pre-
dicts the contribution of the petrochem-
ical industry to overall oil demand
growth will increase by more than 2.5
times to 2040 compared with 2000-17.
It is the only major source of oil demand
where growth is expected to accelerate.
These forecasts assume a steady, strong
demand for plastic will translate into
increasing consumption of feedstock.
They provide a rare ray of optimism for
the oil industry against increasingly dire
long-term predictions that growth of
other demand sources will slow.
Yet there is a problem. These fore-
casts assume that, because plastic
demand increased significantly faster
than global economic growth in the
past, it will continue to do so, although
the gap between the two may narrow.
★ FINANCIAL TIMES
Opinion
is far from clear that the amendment, if
passed, would become the law of the
land in time for the meaningful vote. If
Brexit were a comedy, a suitable ending
would be a filibuster in the House of
Lords. Unfortunately, this is technically
possible.
So let us assume the worst happens.
What then? For the government and the
Bank of England, the short-term
response should be equally straightfor-
Beyond the short term,
the UK should draw up an
intelligent post-industrial
economic strategy
ward: treat a hard Brexit similarly to the
way they dealt with the collapse of Leh-
man Brothers in September 2008. The
financial crisis taught us that modern
economies are relatively robust as long
as we do the right things. Interest rates
must fall, fiscal policy must expand, and
the pound will drop.
Beyond the short term, the UK should
draw up an intelligent post-industrial
This assumes that today’s emerging
markets will replicate prior consump-
tion patterns. Some analysts also claim
that “invisible” plastic — components of
digital infrastructure, electronic gadg-
ets and smartphones — will become a
new source of irreplaceable demand.
These are dubious propositions.
About 45 per cent of plastic production
If the sector pushes ahead
with investment based
on standard forecasts, it
risks stranding assets
is for packaging material; electronics
account for 7 per cent. The EU boasts
the highest recycling rates in the world
— 30 per cent of collected waste — but
still has managed to increase its use of
recycled plastic from a comparatively
high level. Kenya has already banned
single-use plastic bags. Why wouldn’t
strategy. What matters for the long-
term health of an economy is innova-
tion and creativity. The trading regime
matters, but it is not the only, nor even
the main, issue. The products we trade
now are based on innovation that took
place in the past. Of course future inven-
tions will end up being traded, but the
focus should be first on what generates
wealth rather than the removal of, in
most cases, small tariffs.
On this score, the UK is no slouch. The
2018 Global Innovation Index has the
UK in fourth position, ahead of Ger-
many and the US. Germany is in a more
vulnerable position. A decade of under-
investment has left potential growth
weakened. And the country is losing its
technological leadership in areas it used
to dominate, like cars.
After a hard Brexit, the UK should
apply a laser-sharp focus on innovation.
At the same time, it will need to address
the causes of Brexit, including rising lev-
els of inequality, and manage the imme-
diate impact that a no-deal departure
will invariably have on the country.
But the main strategic focus should be
on the shift from the rentier business
model, which I believe has been one of
other emerging markets leapfrog this
hallmark of modern civilisation, as they
have done with fixed-line telephones.
Roughly 90 per cent of oil used by the
petrochemical sector is transformed
into high-value chemicals. Of these, a
high proportion are converted into plas-
tic. This means that about two-thirds of
crude oil demand from the petrochemi-
cal sector is for plastics.
Governments and consumers are
likely to focus on the plastics that leak
into the natural environment. Unless
new technology is developed, the logical
outcomes will be efforts to reduce
demand including by substitution and
increase recycling.
Reduced use of plastic bags and slow-
ing demand growth of other plastic has
the potential to halve the standard
assumed growth in plastic demand of 3
per cent annually from 2017-40. If the
share of recycled plastic displacing vir-
gin product rises from 5 per cent to 25
per cent by 2040, that would further
reduce the need for crude oil.
the deeper reasons behind the Brexit
vote. With the single market in financial
services, the UK has become the euro-
zone’s financial centre. It was a profita-
ble niche, but the British economy has
in the process become too dependent on
finance. Brexit offers an opportunity to
rebalance.
Political economists have known for a
long time that entrenched interests is
what stops countries from transforming
their industrial structures. It takes
shocks for that to happen, which is why
Japan and Germany prospered after the
second world war. There is no reason to
think the UK should not prosper even
after a hard Brexit.
No one in their right mind would jus-
tify the second world war in terms of
fortuitous postwar economic effects. It
would also be wrong to justify a no-deal
Brexit on the grounds that it would give
the UK a chance to make changes it
might otherwise not have done.
Mark Carney, the governor of the
Bank of England, is right. There will be
some positive effects. That said, a no-
deal Brexit is still a very, very bad idea.
munchau@eurointelligence.com
rules for the digital age. The alternative
is allowing China’s own brand of surveil-
lance state capitalism to gain ground.
There are, of course, legitimate points
of trade tension between the US and
Europe. But there is so much more com-
mon ground, particularly when com-
pared to China.
I recently spoke to a French diplomat
who was preparing a list of ways in
which he felt that the US and Europe
were actually converging. This was part
of an effort to convince both his own
government and the EU bureaucracy in
Brussels that they should ignore Mr
Trump’s boorishness and be open to the
benefits of joining forces with the US to
control the high-growth markets of the
future before China claims them.
Among the items on the list was
increasing support among US politi-
cians and the public for the idea of a
Green New Deal to cut the country’s
greenhouse gas emissions and create
jobs. Staffers to newly elected Democrat
congresswoman Alexandria Ocasio-
Cortez, the deal’s most prominent advo-
cate, have met with Germany’s resur-
gent Green party politicians to discuss
common ground.
Then there are the moves towards Big
Tech regulation and digital taxation
(both the US and the EU want to find a
better way to tax intangibles). Even in
healthcare, typically a point of transat-
lantic difference, there is growing com-
mon ground. Americans said it was the
most important voting issue in last
year’s midterm elections and young
people in the US realise that some EU
countries have designed health systems
that are both better, and cheaper.
As polarised as the US and Europe
seem, you can make a case that this is
actually as good a moment as we have
had in years to forge a new transatlantic
alliance. But it is likely that Mr Trump is
going to bungle it by turning a trade war
that has been limited to China and the
US into one that includes the world’s
three major regions. And as we know,
ménages a trois rarely end well.
rana.foroohar@ft.com
Using the IEA World Energy Outlook
as a benchmark, these two modifica-
tions would diminish oil demand from
petrochemicals in 2040 by more than
20 per cent. It could bring projected
peak oil demand forward by a decade
and diminish the need for oil-based pet-
rochemical production capacity by 20
per cent. The dent in oil demand by
2040 would exceed the one that the IEA
predicts would accompany the intro-
duction of electric cars.
This is more than a quirky example of
how real life may get in the way of long-
term planning. If companies push ahead
with investment based on standard
forecasts to expand petrochemical
operations, stranded assets may lie
ahead. On the flip side, a massive need
for recycling capacity is likely to
emerge. The advice handed out in the
1967 film The Graduate — “plastics” — is
about to take on a less positive meaning.
The writer is an economist on the advisory
board of Crystol Energy
9
Populists have
a fair point:
the system
has to change
Minouche
Shafik
A
spectre is haunting the
world: populism.” Those
words date back to an inter-
national conference on the
subject held at the London
School of Economics in 1967. But they
could have been written today.
Populist leaders are tapping into anti-
establishment sentiment, claiming to
represent the real “will of the people”.
Whether on the right or the left, their
parties are anti-elitist and anti-pluralist.
Anyone who disagrees is an “enemy of
the people”, be they judges, academics
or journalists. This anti-pluralist streak
is what makes populists a threat to
democracy. To counter this spectre, we
must address the economic insecurity
and fears about identity that populists
have been able to exploit.
The combination of technological
change and globalisation has seen huge
gains for the richest 1 per cent every-
where and the middle class in emerging
markets. The lower-middle and work-
ing class in most advanced economies
have suffered. The McKinsey Global
Institute found about two-thirds of
households in 25 advanced economies
experienced flat or falling incomes
between 2005 and 2014, with young and
less-educated workers the hardest hit.
Part of the solution lies in familiar pol-
icies that many countries have failed to
implement adequately — investment in
education and skills, infrastructure in
poorer regions, and redistribution
financed by higher taxation. But gov-
ernments also need more creative poli-
cies that enable their economies to be
flexible while giving workers security.
Consider the Danish model of “flexi-
curity” which allows employers to dis-
miss workers relatively easily, but com-
pensates those same workers with gen-
erous social security and mandatory
life-long learning provisions. This
model requires unions and workers
to shift their focus from “job security” to
“income security”. And employers must
Mainstream parties have
failed to provide a credible
plan for shared prosperity
and common identity
accept the price of flexibility is higher
taxes and more investment in people.
We also need to make part-time work
easier, with benefits that are portable.
As part-time work becomes more com-
mon, these flexible workers must be
provided with greater security, as in the
Netherlands, where about half of work-
ers are part-time.
There are also familiar, albeit diffi-
cult, reforms to make our governments
more truly democratic. This includes
reducing the influence of special inter-
ests, enforcing term limits, encouraging
politicians to be honest with the public,
and decentralising more decisions to
give citizens more real power.
Perhaps the most difficult challenge
will be to develop a counter-narrative
on identity that defines who “we” are.
This has become more complicated in
globalised and multicultural societies.
Much of the discussion about identity
in recent years has focused on those
things that make us different — race,
gender, sexual orientation, religion.
Things that bind us — shared values,
history, food, sport, national events —
deserve more emphasis. Consider the
impact of the London Olympics or
The Great British Bake Off in defining an
inclusive sense of Britishness. Or the
unity fostered by the diverse French
football team at last year’s World Cup.
Populists are succeeding because
mainstream parties have failed to pro-
vide a credible vision for shared pros-
perity, economic security and common
identity.
History suggests how this story will
play out. Populists will occupy the state,
engage in patronage, suppress critics
and try to thwart independent judges,
regulators and media. They will also
overspend to buy off their supporters,
ending in either a fiscal or balance of
payments crisis or both.
To ward off the populist threat, we
cannot pretend that the old system
was fine, but must address the very
legitimate grievances that populists
identified, while retaining the values of
democracy and pluralism that they are
trying to destroy.
The writer is director of the London School
of Economics and Political Science
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10 ★ FINANCIAL TIMES Monday 18 February 2019

WORK & CAREERS

A Japanese
‘
For a brief discombobulating moment “Placemaking and community building Shinise products are favoured for decline of the high street, they are
last week, it looked as though have become anathema to those in special occasions, reinforcing a strong generally mourning the demise of

remedy for the Patisserie Valerie, the chain of UK cafés

that sprang from the original Soho
cake-and-coffee parlour, might be
UK’s ailing bought by Mike Ashley.
Mr Ashley, mercurial founder of
town centres Sports Direct, a sporting goods retailer,
is an unlikely would-be saviour of the
UK high street. The retail anti-hero —
attacked in 2016 for his treatment of
warehouse workers — has taken over
or acquired stakes in other chains. He
complained he was shut out of bidding
for Patisserie Valerie, bought, in the
end, by the group’s management and a
central and local government who have
a stranglehold over our high street,”
wrote former retail chief executive Bill
Grimsey last year in his review of the
problem. “The secret behind centuries
of success has been forgotten and we’ve
gone from Agora to empty shops and
deserted town centres.”
Mr Grimsey pointed out that Apple
seemed to “get” the problem, even if
most councils did not. Its outgoing
retail head Angela Ahrendts rebadged
its stores as “town squares”. But as I
have written, that branding effort is
community bond. Shinise executives
gain “access to exclusive circles and
leadership positions in professional
associations”, Prof Ravasi, Innan Sasaki
and Evelyn Micelotta write in a new
paper.
The academics recount how they had
to buy a last-minute present for the
president of a venerable sake brewer
from a non-shinise shop, because all the
traditional retailers were closed. That
turned out to be a gaffe. The executive
“opened the packaging . . . politely
indicated that this particular firm did
Mike Ashley of
Sports Direct is ill-
qualified to restore
the sense of
community
missing from many
anonymous chain-stores, such as
Woolworths, or BHS, which were
themselves once the nemesis of the
kind of century-old family firms that
bind Kyoto together. It would be nice if
such bonds still existed, but most
towns do not have a century to spare to
rebuild them.
It misses the point, though, to focus
remedies only on the cold economics of
rates, rents and retail sales.
The Kyoto paper makes the
sociological distinction between the
“instrumental” and “expressive” roles

private equity fund.
Mr Ashley’s money ought to be as
good as anyone’s when it comes to
rescuing the UK’s bricks-and-mortar
retailers, battered by online rivals
(including Sports Direct), shunned by
cautious customers, and burdened with
rising fixed costs. He is, though, ill-
qualified to restore the sense of
community missing from many town
centres. I visit the pile-’em-high
emporia of Sports Direct for many
things — mainly discounted trainers
and cheap tennis socks — but warm
Andrew Hill community spirit is not one of them.
This spirit is exactly what decades of
Onmanagement poor planning and weak governance
have stripped from town centres.
patronising, presumptuous and at odds
with the unruly traditions of shared
public spaces.
A better meld of commerce and
community can be found in Kyoto, the
ancient Japanese city, where centuries-
old family-owned companies — called
shinise — benefit from particular social
standing and local support for their
products, such as sake, confectionery,
lacquerware or kimonos.
According to Davide Ravasi of
University College London, it is very
clear that “you don’t ‘enter the market’
in Kyoto; you need to be accepted
there . . . If you do it in a way that’s not
respectful of the local traditions, you’re
rejected”.
not have a long history and set aside
the gift without further comment”.
Kyoto is, of course, a far cry from the
chain-dominated centres of most UK
cities (and many Japanese ones).
Family firms, for all the friendly
resonance of the description, can be as
mean or as dysfunctional as any other
company. A surfeit of tradition can also
stifle change. One shinise sweet-
producer told the researchers how his
peers had complained after the
company updated its store and added
new flavours. “I think it’s important to
take the good sides of both tradition
and new ways,” he said with a flash of
innovative defiance.
When British shoppers lament the
’
high streets played by businesses. Instrumental
companies have a strictly economic
purpose: Sports Direct as my go-to
place for socks, for instance.
Expressive businesses, on the other
hand, also contribute to social cohesion
and local identity. They are more
resilient in the face of market pressure.
Somewhere between the extreme
instrumentalism of Mr Ashley and the
expressiveness of the Kyoto shinise, or
indeed the original Patisserie Valerie, is
a place where many British town
centres should start to rebuild their
lost sense of community.
andrew.hill@ft.com
Twitter: @andrewtghill

Working Lives Work Tribes

‘Dear colleagues, I have

Senior women often choose to be mislaid my favourite mug’
EMMA JACOBS AND ANDREW HILL

‘likeable’ — or face being distrusted

Many of us are unable to

make progress because Ronald, the mug neurotic
of outdated stereotypes. 4.05pm. From: Ronald. To:
AllHQ. Dear colleagues —
But this may be changing, I’ve mislaid my favourite
writes Viv Groskop mug (again): white, slightly
chipped, with a picture of a
dancer in evening dress and
Saskia, the wellbeing
director
Thank you for coming to the
sleep seminar. I know it was
mandatory but you are busy
people. Where’s Ellen? Sick,
oh well, there’s a virus going

A
lmost as soon as Elizabeth
Warren entered the frame
as a future US presidential
candidate at the start of the
year, the word “likeable”
came up. As in: “Is she likeable enough
to be president?”
The Washington Post immediately
pointed out that the question is often
“asked of female candidates and rarely
of men.” (Whoever asked if Donald
Trump is likeable?) It was the word that
helped derail Hillary Clinton’s presid-
ential campaign, having followed her
throughout her career.
The idea of “likeability” is relevant to
any woman in leadership, and in fact
to anyone in work. It is a question that
speaks directly to how comfortable we
are with women attaining power. This
intangible quality (“There’s just some-
thing about her I don’t like”) is an
enduring issue in corporate life.
It is also something that is nebulous,
uncomfortable and usually discussed in
private conversations, often supposedly
in jest. I have heard senior women
referred to behind their backs as “femi-
nazis”, “bitches” and “ballbreakers.”
This always makes me laugh as the
women being referred to are usually
nothing more than ambitious, capable
and efficient. In the corporate context I
often think some women at this level
(with an eye to a seat on the board at
some point) feel as if they have to make
a choice between being “likeable” and
being called a “feminazi.”
“At work or in business, being liked
matters to men and women both but I
think it plays out differently, especially
when it comes to people in leadership
positions,” says Margaret Heffernan,
entrepreneur and author of Women On
Top: Redefining Power and the Nature of
Success for the 21st century.
“In general, I think women have dif-
ferent expectations projected on them.
All leaders are expected to be compe-
tent, benevolent, consistent and to dem-
onstrate integrity — that is the founda-
tion of trust, without which it is hard or
impossible to lead. But women also are
expected to show that they care about
the people working for them. To the
degree that that isn’t visible, they are
disliked or distrusted or both.”
This is true whether you are in poli-
tics, corporate life or run a small bus-
iness. Jane Lindsey is a designer and
owner of Snapdragon, an online gift
shop with a six-figure turnover. She
has four part-time employees.
“I think there’s a difference between
being ‘likeable’ and wanting to be liked.
It’s important that people ‘like’ me but
the kind of behaviours that make you
‘likeable’ are not helpful as a boss. You
have to be able to say things that people
will not like. There’s a feeling that being
likeable is a weakness. I don’t think it is.
‘You have Not being able to make decisions is a
weakness. I think perhaps men under-
to be able stand that more — or at least they don’t
to say think it’s going to bring them down.”
Tobi Oredein, founder and chief exec-
things that utive of Black Ballad, an online platform
you know which champions the voices of young
black women in the UK, agrees. Her
people website partners with brands and busi-
nesses and employs several dozen free-
will not like’ lancers. “Last year someone wanted us
to do an event with another brand. I
explained my reasons why not and I
could tell it was uncomfortable for
them. I don’t think that’s my problem.
You can be fair but not at the expense of
being fair to yourself. You have to be
unlikeable sometimes.”
When I coach executive women on
performance and public speaking, they
ask questions about how important it is
to come across as “likeable” or “femi-
nine” (often used interchangeably).
They don’t want to let go of these
attributes. Several senior women have
told me they would rather accept they
can’t be promoted any further than feel
as if they can’t be “feminine” or feel as if
3 Decide for yourself where you sit on
Advice this question. Some people don’t care
about being likeable. Often they’re the
most likeable people because they aren’t
trying to be liked. On the other hand, if a
Ways to long-term tough work situation has
negotiate made you into the Grinch, it might be
worth examining how you come across
the and caring a bit more what others think.
likeability
minefield 3 Redefine “likeable” if necessary. It
doesn’t have to mean “pushover” or
“nice”. Likeable can also mean decisive,
straightforward, no-nonsense, honest,
responsible.
3 Don’t get hung up on gender. There is
no overwhelming evidence that every
single person needs to be boxed in by
gender expectation. Stereotypes exist
for a reason (mostly because they are
they have to behave in a way that feels
fake. I have also known women who
object to the use of the first person in
presentations and speeches because it
feels to them they are making it about
themselves, rather than their team, and
this could come across as “unlikeable”.
This kind of thinking is the antithesis
of the “me, me, me” leadership that
dominates some sectors. But sometimes
FT Live
Join Viv Groskop at the FT,
where she will discuss her book
How to own the Room
live.ft.com/events
I think it is a masking behaviour for
women: a way of evading criticism, and
avoid the risk of being disliked. It is not
an unreasonable behavioural choice.
But you need to ask yourself why you
are doing that and if you are really com-
fortable with what that choice means.
A lot of this thinking stems from long-
established stereotypes around the
idea of “caring” versus “action”, says
easily observable in a majority of the
population) but that does not mean that
every person conforms to a stereotype.
“Likeability” or the absence thereof has
not particularly affected the careers or
fortunes of Margaret Thatcher, Angela
Merkel or even Theresa May.
3 Recognise your individual strengths
and “the things that only you can do”:
what success coaches call your Zone of
Genius. This defines the qualities you
have that few others have or the things
that you bring to your work that are
impossible to delegate. Dialling up these
qualities or skills is a better use of your
energy than stressing that someone is
treating you a particular way because of
your gender. (They might well be. But
sometimes it’s not possible to change
this in the short to medium term.)
the slogan “Hot! Hot! Hot!”
Sentimental value only but I
am thirsty and no other mug
will do. Especially not the
cheap new ones with the
company logo.
4.30pm Colleagues —
Thanks for your responses,
except if you are the person
who left the mauve Post-it
note with “good riddance”
sharpied on it. I do NOT
Jane Lindsey appreciate your snarkiness.
of online retailer 4.55pm Folks. Still hunting.
Snapdragon says To the co-worker pretending can you describe the scene?
being likeable is to be from HR on the
not a weakness #miscellaneouscrap Slack
Victor De Jesus/FT
channel, yes, this is “that
mug” where the lady seems
to undress as hot tea is
Ms Heffernan. “The stereotype for
women — mother/sister/wife — is ines-
poured in. What of it? If you
must know, my sister bought hotel room on the phone to
capable. The stereotype for men — it for me as a joke. Since she
father/brother/husband — has tradi-
tionally been more about competence,
passed away it has become
an important link with her
being practically able to provide. But I precious memory.
think this is changing. You only have to
think of a candidate like John Kerry to
5.14pm From: IT. To: AllHQ.
As we approach the busy
see that likeability isn’t just a female period of the day, please do
issue. Or think about some of the epi-
thets hurled at Mark Zuckerberg.”
not use group email for
anything other than urgent
Women can certainly achieve power messages. Unnecessary
and status while being likeable; in fact it traffic is slowing our
is hard to attain and keep power without response times.
it, adds Ms Heffernan. “But — and it’s a 5.15pm From: Ronald.
big but — if they prioritise likeableness To: AllHQ. The
over competence, clarity, courage, mug’s in poor
integrity, then in leadership roles they taste! So
fail. All leaders, at some point, must what?! Since
have the capacity to take unpopular Project Agile,
decisions — otherwise they aren’t lead- it has been
ers, they’re sheep.” hard to make
Jennifer Palmieri, Mrs Clinton’s ourselves at
former director of communications, has home here.
spoken extensively about the “likeab- 5.20pm Call me nostalgic,
ility” question that dogged her boss’s call me compulsive (not
career long before she stood for office. “weird” as I just heard
Ms Palmieri has said that she hopes that someone whisper), but this
things are changing and people are mug is more than just a
becoming more open-minded about the mug. Each ring-stain is a
range of leadership styles on offer: “You phase in my career. This
have to hope that people look deeper mug is us. This mug is the
when it’s something intangible, like vessel for a warm community switching off your phone
something like likeability.” spirit that decades of “right-
Ironically, during Mrs Clinton’s cam- sizing” cannot chill.
paign Ms Warren was described as 5.23pm Remember: first
“more likeable than Hillary”. Now that they came for the novelty
Ms Warren is in with a shot, of course, crockery, and I did not speak
the shoe is on the other unlikeable foot. out . . .
Clearly mindful that you are damned if 5.35pm Found the mug. In
you do, damned if you don’t, Ms Warren my locker. Thanks to the
is already embracing the silliness of it colleague who saved it from
all, writing on Twitter from a recent the cleaners, washed it up
train ride en route to a TV appearance: and returned it. While I’m
“I hear female candidates are most like- here, has anyone seen my
able in the quiet car.” The underlying stapler? Red with a picture
message is clear: “To hell with that.” of a bikini-clad swimmer
Sellotaped to the base?
The writer is a speaker, executive coach and Sentimental value, again: it
author of ‘How to Own the Room: Women was a gift from my first wife.
and the Art of Brilliant Speaking’
around. Exhaustion? OK, just
as well I’m here.
I am going to start with a
guided meditation. Could
you put your phones down?
If Charles, our esteemed
chairman, can have a screen
break, we all can. Excellent
leadership, Charles. You
really are leading the way in
self-care.
Shut your eyes and think
of a time when you were
happy and relaxed. John,
You can’t think of one? Oh,
come on. When was your
last holiday? Last month?
There you go! There must
have been a time when you
weren’t holed up in your
work. OK, try to think of
another time . . . The sea is
warm and the sand is
between your toes,
excellent! What were you
doing? Building sandcastles,
great. With your children?
No? You were a child
yourself. OK, everyone open
your eyes. John, would you
mind waking Charles?
Gently, please.
Let’s discuss barriers
to eight hours’
sleep. So, full
disclosure, I am
guilty of binge-
O
GO TEP! watching Netflix
SLE until late.
Anyone else?
Will? No time?
John? Same? Oh,
Charles, what are you
watching? The Ted Bundy
Tapes. OK.
Any other barriers to
getting your eight hours
everyone? Heavy workload,
yes. Emails through the
night, yes. Have you tried
after 9pm, like Charles?
Such good sleep hygiene,
Charles. No, John. I’m not
joking.
Well, help is at hand!
We’ve installed nap-pods!
Would anyone like to
volunteer? Anyone other
than Charles? John? Of
course you won’t look like
you’re sleeping on the job.
Your health is important.
Sure, I guess you could use
them later. They’re not really
for overnight but yes, if you
miss the last train home, I
don’t see why not.

Monday 18 February 2019
Employers seek out specialist hires using rankings
Recruiters are joining in
debates on how business
schools’ performance is
listed and assessed. By
Jonathan Moules
W
hat is the purpose of
business school rank-
ings? The question
made it on to the agenda
of January’s World Eco-
nomic Forum meeting in Davos, Swit-
zerland, with the publication of an in-
depth report: “Business School Rank-
ings for the 21st Century”.
It came from the UN Global Compact,
the world’s largest global corporate sus-
tainability initiative, and the report calls
for a dramatic rethink of ranking meth-
odologies. Significantly, the driving
force for change in this report is not a
school or student group but a multina-
tional financial services group, Aviva
Investors, which sponsored the
research.
Aviva believes that MBA rankings’
methodology should reward pro-
grammes that teach responsible capital-
ism, according to Steve Waygood, the
company’s chief responsible investment
officer: “As MBA course offerings are
increasingly driven by rankings, how
can we ensure this race to the top
between MBA programmes encourages
a deeper integration of sustainable
finance?”
Cambridge university research asso-
ciate Ellen Quigley, who co-authored
the report, says, “rankings are seen as
both a shortcut [for employers] to find-
ing good people and a driver of the types
of education people want to obtain”.
But finding overall agreement among
employers on the best set of criteria to
use to rank schools seems an impossible
task. The UN Global Compact report
criticises ranking lists for over-empha-
sising graduate salaries, penalising
schools whose students go on to non-
profit organisations and for not prop-
erly accounting for teaching quality.
It highlighted the Financial Times’s
recent introduction of sustainability
teaching as a requirement for inclusion
РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
★ FINANCIAL TIMES
in its business school rankings as an
‘They look example of a change that could be made
at these as to make the lists take on a more ethical
purpose. (The Financial Times has
ballpark announced that it is reviewing its meth-
odology more widely.)
figures of Dennis Zietsman, group deputy chair-
what they man at Servest Group, a facilities man-
agement business, says any business
can expect school ranking designed for employers
to pay hires’ would be difficult to assess because indi-
vidual students vary so much even
within a single institution.
Servest takes on 300 management
level recruits each year, of which fewer
than ten have MBAs. The London-based
WORK & CAREERS
company, a division of Atalian Servest,
employs 52,000 people across 16 coun-
tries in Europe, the US and Africa.
Mr Zietsman says that an MBA quali-
fication would only make a difference to
an applicant if it came from a school
ranked among the top 15 worldwide.
And the only measure on existing rank-
ing tables that might be of use to
Servest, he says, would be the percent-
age of international students.
Some employers look through rank-
ing lists seeking outliers in business edu-
cation, says Andrew Crisp, co-founder
of the education marketing business
Carrington Crisp. “Companies are often
looking for people who can manage and
lead new technological change,” he says.
“So it can be useful if a list shows which
schools are teaching subjects such as
data science.”
Bain & Company, the consultancy,
takes on about 400 MBA graduates each
year from as many as 60 business
schools. Keith Bevans, a partner who
overseas Bain’s MBA hiring process glo-
bally, looks to find new entrants from
specialist masters and joint degree lists,
such as the MBA with a combined mas-
ters in engineering sciences launched by
Harvard Business School in 2017.
These lists highlight which schools
11
provide the specific training that Bain is
interested in, such as data analytics, Mr
Bevans says. “We are always interested
in understanding how the profiles of the
schools and expectations of their stu-
dents change over time, and rankings
provide a measure of this,” he adds.
One of the most discussed elements of
existing business school ranking lists as
they stand are the salary levels gradu-
ates obtain.
While would-be business school stu-
dents like to see salary data when they
are choosing a course, business schools
often claim that too much focus on sal-
ary detracts from the value of the teach-
ing and other criteria.
Some employers, however, say they
find rankings useful in determining sal-
ary levels for potential hires, according
to Stéphane Rambosson, chief executive
of executive search firm Vici Advisory.
“They look at these as ballpark figures
of what they can expect to pay hires,” Mr
Rambosson says. “They are not going to
treat the rankings like the Bible, but
they are a good guide, allowing compa-
nies to tweak their offers.”
He points out that employers are
interested in attracting people from
schools with the strongest brands,
which is what a ranking list provides.
Mark Butter, managing director of
Blueprint Recruitment Solutions, says
his clients are looking for particular
skills from their MBA hires, so will only
be interested in candidates from schools
that include training in that area on
their courses.
For most employers, though, an MBA
from a school with a good position in a
Stéphane ranking list is “a nice to have” rather
Rambosson, than the deciding factor when consider-
founder and
chief executive
ing a candidate’s potential, Mr Butter
adds. “Their primary driver is the can-
of Vici, an didate themselves and what they can
executive search bring to the role,” he says.
firm — Charlie Bibby/FT Rankings still represent an enormous
opportunity to ensure students are
taught the skills needed to manage in
the 21st century, according to Ms Quig-
ley. “I was told by one school that if a
ranking provider announced that teach-
ing a particular subject would count
towards their place on their list, they
would add that course to their curricu-
lum instantly,” she says.
 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
12 ★ FINANCIAL TIMES Monday 18 February 2019

Pilita Clark Discover more insights

at ft.com/visualjournalism

A bit of Graphical Insight Europe shrinks as Asia rises

rudeness in the Since the start of the century, Asian economies have risen rapidly, overtaking many
in Europe, while those in Latin America have had mixed fortunes

office is often Global ranking by the size of the economy

Purchasing power parity Selected countries:
Europe
no bad thing 2000 05 10 15 2023
Asia
Latin
US China America
China US
Japan EU economies have tended India
Germany to fall in the global rankings, Japan
India especially the smaller ones Germany
6 France Indonesia
Russia Russia
Italy Brazil
9 Brazil UK
UK France
Mexico Mexico
Spain Turkey
13 Indonesia Italy
Canada South Korea
South Korea Saudi Arabia
Saudi Arabia Indonesia’s economy is now Spain
Turkey Canada
Iran larger than those of Mexico, Egypt
Australia France and the UK Iran
Netherlands Thailand
Taiwan Australia
Thailand Poland
To the point: journalist Poland Taiwan
Charles Wintour had a flair Argentina Pakistan
for the withering memo Egypt Venezuela has plunged down Philippines
Pakistan the rankings in the past decade Nigeria
Evening Standard/Hulton Archive/Getty Images
South Africa Malaysia
Malaysia Netherlands
Belgium Bangladesh
Not that long ago a friend sent me a For one thing, social media has similar fate and that is a shame, private life is that I need no longer be Switzerland Argentina
yellowing magazine story about empowered employees to fight back in because his ageing memo contains a polite to nincompoops, bigots, 31 Venezuela Vietnam
famous Fleet Street editors with a Post- a way that was once impossible. number of valuable lessons about curmudgeons and twerps who infest Nigeria Colombia
it note attached saying, “those were the Consider the public humiliation working life. local government bodies and Colombia South Africa, UAE
days”. heaped on the boss of a British tech First, a company does not exist committees such as yours. In the Philippines
Sweden Iraq
I saw what she meant as soon as I firm the other week after he purely to please its employees. It will particular case of your committee, the UAE Algeria
read about the late Charles Wintour, a interviewed a young woman for a job. always have wider aims and it is pleasure is acute.” Algeria Singapore
former London Evening Standard She took to Twitter to say he had torn pointless to ignore them. I have always Bilney was a former adviser to the Austria Romania, Kazakhstan
editor with a flair for the withering her apart in a “brutal” exchange that been in favour of the “don’t ask, don’t late Australian prime minister Gough 39 Greece
memo. A note he sent to a young had left her in tears and made her feel get” approach. But there is a corollary: Whitlam, who once faced a persistent 40 Portugal Sweden, Switzerland
Norway
unnamed reporter who was begging to as if she was in a room with an do not be surprised if it does not heckler on the campaign trail who Ukraine Belgium
be sent to Israel in the 1960s began in a “abusive ex”. produce instant success. demanded to know his views on 43 Bangladesh Hong Kong
way that is now unthinkable. The man quickly apologised, Second, Wintour was making it clear abortion. “Let me make quite clear that Hong Kong Chile
“You are the fifth (and least insisting he had never intended to hurt that ambition does not necessarily I am for abortion and, in your case sir, Romania Peru
qualified) person who has today asked anyone. His company launched an equal ability. No matter how frustrated we should make it retrospective.” Denmark Myanmar
to go to the Middle East,” he wrote. The investigation, saying it was satisfied no thrusting young workers may feel, Alas, it is hard to think of many Chile Austria
Czech Republic Ukraine
paper had already dispatched an bullying had occurred but was there are likely to be times when they politicians today who would be capable Singapore Czech Republic
experienced foreign correspondent to “saddened” by the incident and would will be overlooked for jobs requiring a of such remarks, let alone willing to 50 Vietnam Ireland
Israel, he added, and unless shooting “reflect” on its HR policies. depth of experience and maturity they make them. Hungary Norway
seemed imminent, it would be “insane” I have no idea what went on in that lack. It is best to learn early how to deal By the way, if you were worried Finland Qatar
for a London paper to send anyone interview, nor do I think there is ever with this. about the fate of that young Evening 53 Peru Israel
Israel Morocco
else. “I will bear in mind your request an excuse for wanton bullying or Our tendency to confuse blunt words Standard reporter who was spurned by Ireland Sri Lanka
for an exciting assignment, but they do witless abuse. Yet it is easy to imagine a with unacceptable behaviour has had Wintour, don’t. It turned out to be Max Kazakhstan Kuwait
not grow on trees to be plucked by modern day Wintour suffering a another sad consequence beyond the Hastings, a distinguished foreign Kuwait Portugal
hungry young mouths.” office. It robs public life of some of its correspondent who went on to cover 11 Morocco Hungary
Reading those blunt words, I felt like “ No matter how frustrated most delightful moments. wars, write more than 25 books and Libya Greece
Iraq Denmark
an archaeologist, stumbling over an One of my favourite politicians was edit two Fleet Street papers, first The The economies of Peru and
ancient artefact revealing the odd ways
thrusting young workers the late Australian minister Gordon Daily Telegraph and then, as it
Puerto Rico
Chile will be larger than
Ethiopia
Sudan Uzbekistan
humans once dealt with one another. It may feel, there are likely to Bilney, who was turfed out at the polls happens, the Evening Standard itself. New Zealand Austria’s by 2023 Venezuela
is hard to imagine a manager delivering in 1996. Freshly liberated, he wrote to a Sri Lanka Finland
such tart advice in writing today, in a
be times when they are griping local official in his constituency pilita.clark@ft.com FT visual journalism: Valentina Romei; Cleve Jones Source: IMF
newspaper or anywhere else. overlooked for jobs ” to say: “One of the great pleasures of Twitter: @pilitaclark

LOW 990 Today’s temperatures

LOW
PRESSURE LABELS
Amsterdam Fair 12 Malta Sun 15
990 3 1020 Ankara Sun 13 Manila Sun 31
1010 Athens Sun 16 Miami Cloudy 29
5
LOW 5 8
1 0 0 0
Bahrain Sun
9 4 0 9 4 0
21 Milan Sun 16
-3 Barcelona Sun 16 Montreal Fair -7
1000
Beijing Cloudy
950 950 5 Moscow Fair -3
8 HIGH Belfast Shower 9 Mumbai Sun 30
1010 960
Belgrade Sun 14 960 Munich Sun 11
9 Berlin Sun 970 9 7 0 14 Naples Fair 15
9 5 Brussels Sun 14 New York Cloudy 5
12 14 980
Budapest Fair 9 8 0 10 Nice Sun 14
11
Cairo Fair 990 9 9 0 18 Nicosia Sun 17
11 11 Cardiff Cloudy 11 Oslo Drizzle 5
1 0 0 0 1 0 0 0 -1 Paris Sun
Chicago Cloudy 14
1020
14 10 Cologne Sun 15 Prague Sun 11
1010 1010
1020 12 1020 Copenhagen Fair 9 Reykjavik Fair 0
13
HIGH 1020
Delhi Fair 1 0 2 0 25 Riga Cloudy 5
17 14 Doha Sun 23 Rio Thunder 31
1030 1030
15 13 Dubai Sun 24 Rome Sun 15
1040
Dublin Fair 1 0 4 0 10 San Francisco Sun 12
15 Edinburgh Shower 9 Singapore Fair 31
13
15 15 Frankfurt Sun 13 Stockholm Cloudy 6
18 16 Geneva Sun 12 Strasbourg Sun 14
17
Hamburg Sun 14 Sydney Sun 31
24 Helsinki Cloudy xxNAMExx3 Tokyo Sun 14
20 17 15 15
24 Hong Kong Thunder 21 Toronto Fair -5
Istanbul Sun 11 Vancouver Fair 3
18 Lisbon Cloudy 13 Vienna Fair 8
HIGH
Wind speeds in KPH Scale:
London Shower 11 Warsaw Cloudy 9
Forecasts by Los Angeles Sun 17 Washington Cloudy 11
x = 55.5
Wind speed Luxembourg Sun 11 Zagreb Sun 12
in KPH Madrid Fair 15 Zurich Sun 12
y = 50.5

FRONT SYMBOLS
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HIGH
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CROSSWORD
No. 16,094 Set by CRUX
        ACROSS DOWN
1 Country said to be behind a 1 Move from Arab state to protect
joint effort (5-6) head of government (8)
 
7 Monopolise a source of meat (3) 2 From roundabout I queue for it
9 Accustom Jack to ignore harm perhaps (8)
(5) 3 A question with its answer? (5)
10 Sounds like a cover-up by 4 24 asleep oddly after drinking
 
expert is free (9) this? (4,3)
11 Make an angry fuss as Adam 5 A seat won second time in
and Eve did (5,4) opposition (7)
   12, 15 I must talk freely; not easy to 6 Special mixture to contain
 
do for a man! (5-4) morning sickness (9)
13 It may prove impossible to 7 Restrict movement of black
   express . . . . disgust, that is (7) bishop in a spot (6)
15 See 12 8 Unnamed fallen angel in charge
 
18, 20 Unfeeling, like 20 down, of language (6)
   literally (4-7) 14 Robin bats and pulls a fast one
23 Head of school’s lost direction (9)
indicated by this (5) 16 False criminal charge comes
  24 Genuine alloy of gold with one from final act in theatre? (6-2)
tenth carbon (9) 17 Start employing French duke, a
26 Long form of coat created by mostly conservative master (8)
 
son in 8 (9) 19 Game needs help with tennis
27 Rare kind of ballgame, clearly shot, upset over nothing (7)
not a success (2-3) 20 The object of a post-war burial
28 The French way to show regret (7)
(3) 21 More peaceful destiny, so to
JOTTER PAD 29 Wicked stepmother and speak (6)
daughter finally display 22 Nativity scene in church held by
impatience (5,6) native American (6)
25 Man from the north drowned in
lake (5)
 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
Monday 18 February 2019 ★ 13

Losing rank Baidu faces threat to search US bellwether The anxious wait for
engine dominance in China — ANALYSIS, PAGE 15 Walmart’s results — COMPANIES, PAGE 14

Barclays blow Follow the money Companies turn to secured

bonds as Fed rates freeze deters loan investors
Volkswagen
issues green
as hedge fund ultimatum
to suppliers
Tiger Global PATRICK MCGEE — FRANKFURT

Volkswagen has an ultimatum for its

dumps stake
40,000 suppliers: work with us to cut
carbon emissions or risk losing busi-
ness with Europe’s biggest carmaker.
The German carmaker, which is still
reeling from the 2015 diesel scandal in
which it rigged millions of cars with soft-
3 Setback for Staley’s turnround push ware designed to cheat emissions tests,
is targeting a reduction in pollution
3 Top-10 investor backed chief ’s plan across the lifecycle of its vehicles span-
ning the raw materials used in produc-
tion through the driving phase to the
DAVID CROW — LONDON did not show up on Barclays’ share regis- US bond recycling of components.
STEPHEN MORRIS — ZURICH
ter, one of the people said. Tiger and funds have To ensure its green cars really are
Tiger Global, the US hedge fund that was Barclays declined to comment. had inflows of clean, VW plans to begin giving its sup-
one of the biggest investors in Barclays, People familiar with Tiger’s decision nearly $25bn pliers “S-ratings”, for sustainability.
has sold its entire holding, according to to build its stake said the move was this year Like German rivals BMW and Daim-
people familiar with the matter, in a based on the belief that Mr Staley was Yuriko Nakao/Reuters ler, Volkswagen has already pledged
blow to the bank’s efforts to win support right to focus on its UK retail operation that its zero-emissions vehicles will be
for its turnround strategy. and US-led investment bank. Companies shift borrowing away from loans ... ... as investors demand more built in a carbon-neutral fashion by
New York-based Tiger was among the Tiger also believed Barclays’ sizeable Share of total (%) Loans Secured bonds assembling them in factories relying on
staunchest defenders of chief executive Wall Street presence meant it was likely 2019 (%) Bond yield Loan yield renewable energy. Executives at the car-
Jes Staley’s plan to improve the group’s to be a big beneficiary among foreign 100 8 maker have decided their big push on
languishing share price by reviving its banks from President Donald Trump’s electric cars — where it plans to spend
investment bank. corporate tax cuts, as well as a rise in US 80 €30bn in the next five years — will only
But the multibillion-dollar hedge interest rates. 6 be credible if its suppliers also rely on
fund — which was a top-10 investor, with The fund was founded in 2001 by 60 sustainable energy wherever possible.
roughly 2.5 per cent — started cutting its Chase Coleman, the most prominent of 4 “This is a revolution,” Marco Philippi,
40
position last summer before offloading the “Tiger Cub” fund managers who corporate director for VW Group pro-
it entirely this year, the people said. learnt their craft working for renowned 20 2 curement, said. “If there are violations,
industry figure Julian Robertson at his our partners will not be our partners.”
Tiger Management in the 1990s. 0 For example, the emissions impact of
Barclays is trying to stop The fund has tended to invest in tech
2005 10 15 19 0
the supply chain required to build the
YTD Dun & Bradstreet CommScope
activist investor Edward companies but has recently diversified Sources: Citigroup; FT research “I.D. Neo” hatchback electric car that
and holds stakes in Domino’s pizza and VW will take orders for this year is 150
Bramson from forcing JC Penney, the retailer, as well as Spot- per cent higher than for a diesel Golf,
his way on to the board ify, Adobe and Salesforce, according to JOE RENNISON — NEW YORK which rates are likely to flatline — or Rising investor appetite for secured mainly due to the battery. If drivers then
securities filing. even fall — over the next year. bonds, which remain a small part of charge it with coal-powered energy, its
Companies across the US are turning
Its exit comes at a difficult juncture One person familiar with the matter US bond funds have had inflows of the overall market for corporate debt, benefits as a “green car” dwindle.
to the secured bond market for fund-
for Barclays, which is trying to prevent said the decision to exit Barclays should nearly $25bn this year, compared means companies can offer lower The plan means Volkswagen is taking
ing, as the Federal Reserve’s decision
activist investor Edward Bramson from not be interpreted as a loss of confidence with outflows of more than $6bn for yields. Business analytics provider aim at the two most carbon-intensive
to hit the pause button on interest
forcing his way on to the board and engi- in Mr Staley. The fund had probably leveraged loan funds, according to Dun & Bradstreet and telecoms infra- “hotspots” in a vehicle’s life. Last month
rate rises reduces the appeal of previ-
neering a shift in strategy that would seen more attractive investment oppor- EPFR Global. structure group CommScope are it established power business Elli to pro-
ously red-hot loans.
involve shrinking the investment bank. tunities elsewhere, the person said. Companies needing cash are follow- among those to have benefited from vide homeowners with access to renew-
When Tiger amassed its position, it Mr Bramson, who has built a 5.5 per Already indebted or lowly rated busi- ing the money. Sales of secured bonds, shifting to the bond market. able energy to charge car batteries. The
was seen as a boost for Mr Staley, who cent stake in Barclays via his Sherborne nesses were big users of the loan mar- which, like loans, give lenders a claim The diminished appeal to investors targeting of suppliers came on Friday.
has pledged to protect the investment vehicle, has emerged as one of the big- ket for much of last year, as investors on company assets, have jumped to of the loan market means that compa- But getting the supply chain on board
bank from Mr Bramson’s attack. gest opponents of Mr Staley’s strategy of flocked to products whose returns $12.6bn this year, more than double nies which do tap it are having to offer will be a challenge, observers say. Jose
The US hedge fund spent more than preserving the investment bank, which rose in tandem with interest rates. the same period in 2018, according to juicier returns. But analysts at Citi Lazuen, battery analyst at consultancy
$1bn to build its stake in Barclays in he describes as a “black box with too But the possibility that rate rises Citi. They make up just over a quarter warn that is not enough to offset the Roskill, said battery makers operate on
November 2017, when the shares were much leverage”. have peaked weakens the allure of of issuance across secured bonds and effect of the shift from the Fed. such slim margins that few have the
trading at about 180p. They rallied to This month he said he intended to loans, which normally have floating loans, the highest share since 2010. “I do think that the loan market will money to invest in green initiatives.
touch 217p in March last year but have muscle his way on to the bank’s board at interest rates that can reset higher or “It is much harder to get things continue to struggle,” said Mr Ander- Volkswagen admitted it would be
since lost a quarter of their value. On Barclays’ annual meeting in May. How- lower. Instead, investors are putting done in the loan market and so com- son. “All things equal I want to be paid “step-by-step” process. In areas where
Friday, the stock closed at 159.5p. ever, one top-five shareholder told the more money into corporate bonds, panies are moving some of that issu- more for the loan if I think rates are CO2-neutral manufacturing does not
Most of the fund’s position was held Financial Times he expected Mr Bram- which typically offer fixed returns ance to secured bonds,” said Michael more likely to go down than up in the exist, it plans to offset the emissions, for
through swaps, meaning the unwinding son to lose the proxy battle. that are more attractive in a world in Anderson, an analyst at Citi. next few years.” instance by planting trees in rainforests.

Citigroup hopes to buy tower HQ for

£1.2bn in bet on post-Brexit London
STEPHEN MORRIS — LONDON in Tribeca for $2bn in 2016. The bank was sold to a property group founded
said that move would save it a signifi- by Hong Kong tycoon Li Ka-shing.
Citigroup is in talks to buy its London
cant amount of money and was part of Alongside Goldman’s £1.2bn property
skyscraper office for about £1.2bn, as it
chief executive Michael Corbat’s drive deal, Citi’s planned acquisition would be
commits its long-term future to the UK
to make the lender smaller and simpler. one of the highest prices ever paid for a
despite turmoil surrounding Brexit.
Citi declined to comment and AGC London office, after the 2017 sale of the
The US bank hopes to agree a purchase could not be reached for comment. “Walkie Talkie” tower for £1.3bn to
Court changes the weather of the Canada Square tower in Canary The Canada Square sale would be a Hong Kong’s Lee Kum Kee.
for Australia’s coalminers Wharf from Middle East-backed private boon for London’s financial sector and When Citi’s lease on an adjoining 18-
equity group AGC Equity Partners in the property market, demonstrating the floor Canada Square building expires in
Australia’s mining industry is reeling next few weeks, according to a person city’s continued appeal to global busi- about seven years, the bank plans to
from a court ruling that, for the first familiar with the sale. ness despite the risks surrounding the leave it and consolidate its 6,000 Lon-
time, invoked climate change to block It has occupied the 200-metre-high, UK’s departure from the EU. don staff in the tower it is in talks to buy,
a proposed coal project. Miners say it 42-storey office since 2001 and has said Citi is pursuing a different strategy to the person familiar with the deal said.
will have damaging consequences and it will remain its European, Middle East- rival Goldman Sachs, which negotiated The tower has 1.2m sq ft of office space
threatens to drive up the price of coal, ern and African headquarters even after a £1.2bn sale and 25-year leaseback of and is the fourth-tallest UK building.
but environmental activists welcomed Brexit. The offer is part of Citi’s strategy its new London base with Korea’s Citi is also looking for a bigger office in
the ruling as a precedent in one of the to own, rather than rent, its major office National Pension Service in August. UBS Paris after deciding to increase the
world’s largest coal export regions. buildings to cut long-term expenses. decided to lease rather than own its new number of trading jobs there.
Analysis i PAGE 16 The negotiations follow the acquisi- London HQ. In June, the steel-coated, Broker CBRE is advising AGC on the
tion of its New York global headquarters 13-storey Broadgate “groundscraper” sale of 25 Canada Square.

Companies / Sectors / People

Companies
Adobe.............................................................13
Airbus................................................................1
Alibaba...........................................................15
Alstom..............................................................3
Amazon......................................................4,14
AssetCo.........................................................14
Aurelius Capital Management.........16
BAE Systems.................................................1
Baidu...............................................................15
Barclays.........................................................13
Berkshire Hathaway.............................20
Blackstone...................................................16
BP.......................................................................4
CRRC.................................................................3
Carillion.........................................................14
Citigroup.......................................................13
CommScope................................................13
Deutsche Bank......................................3,14
Domino...........................................................13
Domino’s Pizza.........................................14
Dufry...............................................................14
Dun & Bradstreet....................................13
EY.....................................................................14
ExxonMobil...................................................4
Facebook........................................................4
General Motors .........................................4
Glencore........................................................16
Gloucester Resources...........................16
Google........................................................4,15
Grant Thornton........................................14
HNA.................................................................14
Hikvision.........................................................4
Hilton Worldwide....................................14
Huawei..........................................................1,3
Intel....................................................................4
JAB Holdings.............................................15
JC Penney....................................................13
JPMorgan Chase......................................14
Jet.com...........................................................14
KPMG..............................................................14
Kepco..............................................................16
Kuka...................................................................3
Microsoft.......................................................15
Midea................................................................3
NEC....................................................................4
NetPosa...........................................................4
New Hope....................................................16
Nvidia...............................................................4
Peabody Energy......................................16
PwC..................................................................14
Rio Tinto.......................................................16
Salesforce.....................................................13
Shell...................................................................4
Siemens...........................................................3
Spotify............................................................13
Starbucks.....................................................20
Stroytransgaz...............................................7
Tencent..........................................................15
ThyssenKrupp ...........................................3
Tiger Global................................................13
UBS..................................................................14
Unilever...........................................................4
Volkswagen.................................................13
Walmart.........................................................14
Whitehaven Coal......................................16
Windstream.................................................16
Yancoal..........................................................16
i360....................................................................4
Sectors
Airlines...........................................................14
Banks.....................................................3,14,16
Energy............................................................16
Financials...........................................14,15,16
Industrial Metals ......................................3
Media..............................................................13
Mining............................................................16
Oil & Gas........................................................4
Rail......................................................................3
Retail.....................................................13,14,15
Software........................................................15
Support Services.....................................14
Technology.....................................3,4,14,15
Telecoms....................................................3,16
Travel & Leisure................................14,20
People
Becht, Bart...................................................15
Brodsky, Mark............................................16
Carr, Roger.....................................................1
Corbat, Michael.........................................13
Enders, Tom..................................................1
Engstrom, Evan..........................................4
Goudet,, Olivier.........................................15
Harf, Peter...................................................15
McMillon, Doug.........................................14
Michael, Bill.................................................14
Philippi, Marco...........................................13
Sandberg, Sheryl.......................................4
Staley, Jes.....................................................13
Stephan, Shane.........................................16
Thomas, Tony............................................16
Varley, Steve..............................................14

© The Financial Times Limited 2019 Week 8

 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
14 ★ FINANCIAL TIMES Monday 18 February 2019

COMPANIES
INSIDE BUSINESS
Financials
ON MONDAY

HNA reduces stake in Deutsche Bank Jonathan

Debt-laden Chinese group
cuts holding after steady
fall in lender’s share price
TOBIAS BUCK — BERLIN
The largest shareholder in Deutsche
Bank has again reduced its holding in
the German lender, with China’s HNA
revealing that it has cut its stake by
nearly a fifth to 6.3 per cent.
of divestments to tackle its debt pile of
almost $100bn.
The Chinese group borrowed heavily
to build a 9.9 per cent holding in Deut-
sche Bank in early 2017, gradually
reducing it since then.
HNA holds the stock through the Aus-
trian fund C-Quadrat and a chain of off-
shore holding companies, while the
Swiss bank UBS provided a derivatives
product known as a funded equity collar
to help build the stake.
was due to the expiry of the derivatives.
HNA’s 6.3 per cent stake still makes it
Deutsche’s largest shareholder on
paper, ahead of the Qatari royal family’s
6.1 per cent stake, and BlackRock,
which held a 4.88 per cent stake on Jan-
uary 31. HNA and Deutsche Bank
declined to comment.
HNA quietly reorganised part of this
complex financing structure last year to
buy more time to decide what to do with
its stake. The latest filing shows that, in
Ford
HNA has HNA’s overarching strategy behind
building the Deutsche stake has never
reversed
its buying
been clear. Banking supervisors in
Europe have felt uneasy about the com-
plex financing structure for a while, as it
Trust in auditors will
strategy to
tackle its
allows the group to exert corporate con-
trol while employing very little capital.
be elusive without an
debt pile
Shortly after the Chinese conglomer-
ate built its stake, the Austrian investor
and HNA confidant Alexander Schütz
overhaul of priorities
joined Deutsche’s supervisory board.
Mr Schütz, who heads the C-Quadrat

The move is the latest retreat by the
financially stretched Chinese group.
Hainan-based HNA started as a regional
airline but took large stakes in compa-
nies such as Hilton Worldwide and
Deutsche Bank as part of a $40bn acqui-
sition binge that made it one of China’s
largest owners of overseas assets.
HNA has reversed the strategy over
the past year, however, making a series
Shares in Deutsche Bank have more
than halved since, hit by fears about its
losses, high litigation costs and falling
market share in investment banking.
Before the latest reduction, C-Quad-
rat held a direct stake of 1.01 per cent in
Deutsche Bank, with another 6.63 per
cent held through financial instru-
ments. According to a fresh filing by US
regulators, the reduction in the stake
Technology. Justice system
July, HNA extended part of the collar
until April 2019, while transferring this
section of the financing from UBS to
JPMorgan Chase.
JPMorgan has arranged similar
financing for the Chinese conglomerate
in the past. Other US investment banks,
such as Goldman Sachs, have in the past
struggled to clear deals for HNA
through their compliance departments.
A
group through which HNA holds its
stake, got a five-year extension of his
term at Deutsche in May last year.
Equity collars were developed as a
way to hedge against a drop in a com-
pany’s share price.
Investment banks can also use the
strategy to help investors to discreetly
build a fresh stake in a company using
little of their own capital.
ccounting bosses have no difficulty recalling
how much they get paid for doing audits. PwC
earns a margin of 18 per cent on its work for
UK groups, its senior partner, Kevin Ellis, told
a parliamentary select committee last month.
He was seeking to scotch the suggestion that audits were
a mere “loss leader” through which PwC flogged more
profitable consulting services. But do the Big Four auditors
really understand why shareholders pay them these sums?
Not really, at least if the evidence given by PwC and its
fellow Big Four honchos before the business, energy and
industrial strategy committee is anything to go by.
Asked about their legal responsibilities, the four were
rather hazy. Bill Michael, KPMG’s UK chairman, thought
the job was to “audit in accordance with auditing stand-
ards”. When quizzed about the efforts his firm took to

China leads the way in ‘lawtech’ patents
Livestreamed trials are among
innovations as claimants file
cases and settle disputes online
BARNEY THOMPSON — LONDON
NIAN LIU — BEIJING
China is emerging as a leader in the use
of legal technology in its efforts to mod-
ernise its justice system to address a
shortage of experienced lawyers.
Figures from Thomson Reuters show
the number of patents related to legal
technology, or “lawtech”, filed globally
has risen from 202 in 2013 to 933 last
year. Of those, 51 per cent were filed in
China last year, 23 per cent in the US and
11 per cent in South Korea.
Western law firms and other legal
service providers tend to concentrate on
how to automate operations in the name
of efficiency and cost savings, not least
because their biggest clients — corpo-
rate legal departments — are insisting
on lower bills.
By contrast, Chinese innovators are
more focused on ordinary citizens, with
‘If you find a pirated
copy of a movie online,
you only need to
[screenshot] the page’
courts livestreaming trials — from traf-
fic incidents and small financial dis-
putes to drug offences and theft — and
enabling claimants to file cases, submit
evidence and resolve disputes online. The courthouse
More sensitive issues, including any- in Jiangyin, in
thing deemed to involve national secu- the eastern
rity, are kept away from public scrutiny. province of
China has livestreamed more than Jiangsu. Chinese
2.4m trials since introducing the tech- innovators say
nology in 2016. It also has three online online courts
courts, in Hangzhou and Beijing, which save time and
have opened in the past two years, while money for
one in Shanghai has an online mediation ordinary
platform to resolve disputes before they citizens — AP
go to trial. There is also a “central”
online mediation platform, with more
than 1,400 Chinese courts listed.
Other recent Chinese lawtech patents
cited by Thomson Reuters include facial
recognition technology in conveyance
work, and algorithms matching poten-
tial clients to particular law firms
depending on their needs.
In part, China’s lawtech boom is a
response to a relatively young and
under-developed legal system. It has far
fewer lawyers per head than in the west
— two per 10,000 residents, versus 40
per 10,000 in the US, the world’s biggest
legal market by value.
Zhang Yanlai of Zhejiang Kin Ding,
the law firm, said online courts saved
time and money for ordinary citizens.
“You [can] just turn on a computer to
complete an entire legal procedure,” he
said. “You don’t have to have internet-
based evidence notarised any
more . . . for example, if you find a
pirated copy of a movie online, you only
need to [screenshot] the page.”
Livestreamed hearings and trials
were intended as a way of educating the
public, he said. “By showing how
[judges] rule on one case, it tells the
public what the court’s attitude is
towards those types of case.”
Western firms and legal businesses
are also investing in new technologies,
from contract automation to artificial
intelligence and machine learning. Dis-
pute lawyers, regulators and law
enforcement agencies routinely use AI
to analyse the millions of documents
involved in disclosure — the trawling
through contracts, correspondence and
other material in an effort to find the
most relevant information.
Recent lawtech patents filed in the
US, according to Thomson Reuters,
have included the automated annota-
tion of legal documents with citations
from previous cases, and a program that
could assess the type and volume of
materials to estimate a case timeline.
A growing number of lawtech start-
ups are vying for business from in-house
legal departments to take work away
from traditional law firms, many of
Patents for legal services
technology on the rise
Number of patents filed worldwide
1,000
800
600
400
200
0
2013 14 15 16 17 18
Source: Refinitiv
which have set up their own innovation
hubs or backed lawtech entrepreneurs.
“There has been an explosion of data
and complexity in legal work over [the]
past 10 years,” said John Croft, president
of Elevate, the law company that has
developed automated non-disclosure
agreements for a large financial services
company. “In the past you would keep
hiring more and more lawyers to deal
with it but it gets to a point where that’s
no longer possible.
“There has been lots of hype . . . but
in a few years these new tools will have
been market-tested and all of a sudden
they will be ready to go.”
While the UK is experimenting with
an online court system for divorce appli-
cations, small money claims and motor-
ing offences — and is piloting other serv-
ices as part of a £1bn programme —
China is forging ahead with applications
that are replacing lawyers’ functions
and even assisting judges.
“Many courts are using smart ruling
systems [that] categorise and analyse
previous cases to help judges draft their
verdicts,” said Mr Zhang. For similar,
repetitive types of case, some of those
systems can be “very reliable”.
ensure clients complied with the law, Steve Varley, UK and
Ireland chairman of EY, demurred that it was doing audits,
“not a full-on legal review of a company’s operations”.
So long as they checked the numbers thrown out by rele-
vant accounting rules, most felt they were discharging
their obligations under company law.
This explains a lot of what’s wrong with audits, and why
a series of scandals — from bank collapses a decade ago to
more recent failures such as construction group Carillion
— has so shaken public faith.
It is why accountants nodded through vast bank profits
and dividends before the financial crisis, ignoring the fact
that the banks in question were not accounting for
expected losses and thus overstating capital.
In an inquiry before the Irish parliament in 2015, John
McDonnell, a partner at PwC, said these had been ignored
because accounting standards only required the bank to
account for incurred losses — loans where payments had
been missed. Going further would have been improper.
“When those rules are in law, you must apply them to give
a true and fair view,” he said. “If you don’t apply them, you
cannot say the accounts give a true and fair view.”
Indeed this myopic approach infects the whole question
of “capital maintenance” — the requirement for a com-
pany to have sufficient distributable reserves to pay a law-
ful dividend. Domino’s Pizza,
a listed company, paid illegal
dividends totalling £85m
When asked
over a 16-year period, largely about their legal
because no one checked
whether it was entitled to do
responsibilities,
so. Carillion made a £54m the Big Four were
payout just weeks before
announcing an £845m writ-
rather hazy
edown that wiped out not
just that year’s profits, but the previous five as well.
Audit bosses argue it’s enough to follow accounting
standards to discharge their responsibilities. But that is
very questionable. According to law, dividends should
only be paid out of realised profits — actual cash or as near
as makes no difference. “Accounting standards — which
accountants themselves heavily influence — are perhaps
unsurprisingly, much more accommodating,” according to
Karthik Ramanna, professor of business and public policy
at Oxford university’s Blavatnik School of Government.
For instance, they permit banks to write up future prof-
its on zero-interest credit cards, which are little more than
statistical estimates of the duration of the card beyond the
interest-free period and guesses of likely balances. These
conjectural blips on a computer screen can then be paid
out as cash dividends without anyone turning a hair.
Auditors like auditing to applicable standards because
it’s supposed to limit liability. You turn laws that require
judgment into rules that are satisfied by a series of
mechanical tests. True, that can sometimes backfire, not
least when the company is grossly fraudulent. Take the
High Court case against Grant Thornton over its audits of
AssetCo, a venture that once leased London its fire engines
and was looted by its managers. The bean-counter’s failure
to challenge has left it with a negligence bill of £21m.
But there’s a bigger worry too about auditing to applica-
ble standards: it actually deflects the auditor from their
purpose. This is not to fill annual accounts with compli-
cated numbers and notionally transparent but, in fact,
hard-to-follow explanations. It is rather to assure inves-
tors that the company’s capital is safe and has not been
abused by insiders. External oversight, after all, is the
price companies pay for the privilege of limited liability.
Auditors talk a good game about restoring public confi-
dence after a wave of scandals. But an excellent start would
be to focus on their central legal duties of protecting capital
and ensuring the figures present a “true and fair” view.
The real question is whether current accounting standards
actually aid these crucial judgments. The growing suspi-
cion is that they do not.
jonathan.ford@ft.com

Retail

Walmart’s earnings expected to lay bare costs of US battle with Amazon

Legal Notices ALISTAIR GRAY — NEW YORK
Walmart will reveal this week how it
fared in its battle with Amazon for
Christmas shoppers’ dollars, with some
on Wall Street expecting the retailer to
report its weakest profit margins in
years alongside rising sales.
Despite government data last week that
showed US retail sales in December fell
the most since 2009, like-for-like reve-
nues at the country’s biggest retailer
were expected to have risen about a fifth
faster in its crucial fourth quarter than a
year ago.
But the results from the supermarket
juggernaut, which operates more than
11,200 stores worldwide, are also
expected to show how the investments
it is making to better compete in the dig-
ital era are weighing on profitability.
“It takes spending when you’re com-
peting, long-term, with Amazon,” said
David Schick, managing partner at Con-
sumer Edge Research. “These are
investment heavy initiatives.”
Rising transport and labour costs are
adding to bottom line pressure on Wal-
mart, which employs more than 2.2m
people.
The company is giving truckers a raise
to almost $90,000 on average in an
effort to attract hundreds of drivers for
its delivery fleet.
Gross margins are expected to have
fallen to 23.9 per cent, according to bro-
ker estimates collated by S&P Capital
IQ, which would be the weakest in at
least eight years.
Doug McMillon, chief executive, has
already put shareholders on notice that
Walmart needs to invest and take risks
as its seeks to “reimagine retail”.
Initiatives include grocery pick-up at
more than 2,000 stores and a new deliv-
ery service in more than 35 US cities.
Workers are being kitted out with hand-
held apps, and stores with automated
shelf scanners.
Online, the company has relaunched
Walmart.com and Jet.com, the New Jer-
sey ecommerce site it bought for about
$3bn in 2016.
Investors are counting on improved
metrics from the online businesses, in
which a stuttering performance over the
previous holiday season brought to the
fore concerns about Walmart’s ability to
compete with Amazon.
Like-for-like US sales are forecast to
have risen 3.1 per cent in the three
months to the end of January, according
to S&P Capital IQ.
That would mark a deceleration from
the 3.4 per cent in the previous quarter
but a recovery from the unexpect-
edly weak 2.6 per cent in the year-ago
quarter.
Walmart’s earnings will be the latest
in a series of mixed figures about the
health of American consumers.
Wall Street is sceptical about the
accuracy of the economic data last week
that showed headline retail sales
dropped 1.2 per cent month on month.
Other figures have pointed to a strong
labour market.
“If Walmart’s sales have done well it
would kind of suggest that the govern-
ment numbers are off,” said Neil Saun-
ders, managing director at GlobalData
Retail.
“Walmart is a bellwether for the econ-
omy. It’s almost representative of how
people are spending,” he added.

Monday 18 February 2019
Baidu struggles to catch up with mobile rivals
Chinese search
engine is criticised
by web users and
walled off by peers
YUAN YANG AND NIAN LIU — BEIJING
LOUISE LUCAS — HONG KONG
When Microsoft’s Bing, the last foreign
search engine left in China, was briefly
inaccessible last month it caused a
spasm of worry among Chinese internet
users that their only remaining choice
might be Baidu.
Baidu has been China’s dominant
search engine for much of the past two
decades but is once again facing heavy
criticism, after a claim went viral that it
prioritised links to its own platforms
above more relevant results.
When it releases its fourth-quarter
earnings this week, analysts expect its
operating margin, which fell from 21 per
cent to 16 per cent between the second
and third quarters, to have shrunk again
as China’s advertising market slows.
Meanwhile, more of China’s internet
is being fenced off from the reach of
Baidu’s search engine by its rivals. “For
Baidu these few years are difficult
years,” said Jialong Shi, internet analyst
for Nomura China. “Their current cash
cow, the search engine business, is fac-
ing a structural issue: many users and
contents and time are taken away by the
super-apps, while their new revenue
drive, AI, is still in a cultivation stage.”
Baidu was the gateway to the Chinese
‘Users are taken away by
the super-apps, while their
new revenue drive, AI, is
still in a cultivation stage’
internet during the desktop era, and has
seen off a series of competitors, includ-
ing Google. But its transition to the
mobile age was slow, and its troubles
began in earnest in 2016, during a medi-
cal advertising scandal in which a young
man died after buying an experimental
cancer treatment found through Baidu.
The scandal exposed a reliance on
medical ads, which accounted for 20-30
per cent of revenues, according to ana-
lysts. After regulators intervened, Baidu
removed one-fifth of its advertisers and
issued a revenue warning.
Last year, as the economy and online
advertising growth began to slow,
Baidu’s shares, like those of its rivals,
suffered. The company is still China’s
Baidu share of the online
marketing sector
Market share (%)
Baidu Other Market size
0 20 40 60 80 100 (Rmb bn)
49.29
73.18
100.01
156.44
213.46
255.04
301.01
Sources: company; Analysys; Bloomberg
Financials
JAB seeks ‘stellar’ managing partner
after Becht bows out unexpectedly
LEILA ABBOUD AND ARASH MASSOUDI
LONDON
JAB Holdings, the acquisitive invest-
ment group whose portfolio spans Pret
A Manger and Keurig Dr Pepper, plans
to recruit a new managing partner to
replace Bart Becht, who left unexpect-
edly last month after a disagreement
over strategy.
Peter Harf, JAB chairman, told the
Financial Times that the 29-person
investment group and its portfolio com-
panies were stocked with “young talent”
who could be promoted if they showed
the right combination of skills and
ambition.
“We need someone who is incredibly
honest, humble, and of course who has a
stellar track record,” said Mr Harf in an
interview, he added JAB might wait up
to three years. “I have options in mind.”
The clash between Mr Becht, the
former chief executive of Reckitt Benck-
iser, and the other partners stemmed
from a differing views on how JAB
should function.
Mr Becht advocated taking a more
direct approach to running the portfolio
of casual dining and coffee-dominated
businesses, which also include Jacobs
Douwe Egberts and Panera Bread Com-
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COMPANIES
to do so. Increased marketing spend is
one of the reasons Nomura has cut its
earnings estimates for the last quarter of
2018, along with Goldman Sachs.
“The cash cow is not growing, the ones
that are growing are not making a lot of
money, and some parts are only burning
money,” said Martin Bao of Industrial
and Commercial Bank of China, who
estimates non-GAAP net profit margins
will drop from 26.3 per cent in 2017 to
22.8 per cent for last year.
While its search engine stalls, Baidu
has been deploying its research talent
on its driverless cars project Apollo, and
its achievements in language processing
have garnered international kudos.
While it waits for these projects to
reach fruition, Baidu is focused on try-
ing to win back users. It was a notable
sponsor of the Chinese new year gala
show for the first time this year. The lar-
gesse helped to lift Baidu’s daily average
users on its mobile app to 300m during
the holiday period, Citi said, more than
double the number of daily average
users recorded in December.
But it still has a long way to go to com-
pete with WeChat’s more than 700m-
Baidu’s Beijing headquarters. The group was the gateway to China’s internet in the desktop era, but has lagged behind Tencent and Alibaba — Qilai Shen/Bloomberg strong daily user base.
third-largest tech stock by market value
but its performance has lagged behind
Tencent and Alibaba, especially as more
content moves on to social media plat-
forms, such as WeChat, which Baidu’s
search engine does not capture.
In the shorter term, Baidu has tried to
fight back against Tencent’s social
media dominance through its own
online blogging platform, Baijiahao.
Tencent prevents Baidu from index-
ing articles written by its more than 1bn
user accounts, while Alibaba also fences
off its Taobao online marketplace
results, thus creating what analysts call
an internet of “walled gardens”.
But Baidu’s promotion of Baijiahao
became notorious last month after a
prominent tech blogger, Fang Kecheng,
wrote a viral post criticising the com-
pany for allegedly over-stuffing search
results with Baijiahao pages, prioritising
its own content above relevancy.
In a public statement responding to
the criticisms of its blogging platform,
Baidu said there were over 1.9m crea-
tors on Baijiahao, adding that it would
continue to improve its content.
As well as building the Baijiahao plat-
form, Baidu is trying to drive users to a
clutch of new apps, such as its short
video app Haokan, in a diversification
push on apps known internally as
“make one superb, make many strong”.
But one employee suggested there is
an internal feeling that Baidu is chasing
too many targets, and spending money
China’s tech giants
Share prices (rebased)
Baidu 250
Tencent
Alibaba
200
150
100
50
2017 18 19
pany. He also wanted JAB to do fewer
deals. But during a $50bn-plus acquisi-
tion spree, Mr Harf became convinced
that JAB should be an investment com-
pany, and leave the day-to-day manage-
ment to the executives at the busi-
nesses.
“This is my mistake, a construction
mistake, at the beginning,” Mr Harf
said, confirming an earlier FT report. “It
was a conflict, if you will, of objectives.”
He added: “What I didn’t realise at the
time [I hired him] was that Bart is really
more interested in operations, in oper-
ating, and we were trying to form an
investment company. An investment
company . . . is fundamentally different
from a company that operates as its
major thing.”
Asked whether Mr Becht had sold his
JAB shares, Mr Harf said: “We did a very
friendly deal that takes the financial
side out of the equation. We’re friends, I
like the guy. We worked together for 30
years.”
Mr Becht declined to comment.
For now, the task of running JAB falls
to Mr Harf and fellow managing part-
ner Olivier Goudet, a skilled dealmaker
who joined from US food group Mars
around the same time that Mr Becht
arrived in 2012.

16
Australian court blocks coal
project on climate grounds
Environmental campaigners celebrate ruling that leaves industry reeling
JAMIE SMYTH — CANBERRA
NEIL HUME — LONDON
Australia’s mining industry is recoiling
in shock over a court ruling that cited
climate change as a reason for blocking
a coal project, a first for a country with a
A$67bn-a-year coal export industry.
The judgment was delivered by the
Land and Environment Court in the
state of New South Wales, which hears
environmental, development, building
and planning disputes.
The court dismissed an appeal by
Gloucester Resources, which was seek-
ing to overturn a decision refusing per-
mission to develop the Rocky Hill mine
because of the impact on a nearby town.
But in a contentious ruling, Judge
Brian Preston cited the contribution of
coal from the mine to climate change as
a factor in refusing the application.
Environmental campaigners say the
landmark ruling could set a precedent
in one of the world’s largest coal export
regions and halt development of almost
a dozen projects. These include United
Wambo, a joint venture between Glen-
core and Peabody Energy, Whitehaven
Coal’s Vickery Extension and a mine
proposed by South Korea’s Kepco.
The mining industry said it was study-
ing the ruling, which it warned could
have implications that extend to other
sectors of the economy. It is taking legal
advice while stepping up its advocacy
efforts.
Tania Constable, chief executive of
the Minerals Council of Australia, an
industry group, said: “This judgment is
of major concern because it goes beyond
the expectations of regulation. It makes
a judgment bringing into account other
factors, which we believe could have
implications that go well beyond the
mining industry.
“This could impact construction or
infrastructure projects. Any major
project in Australia could be affected.”
The NSW Minerals Council, the New
South Wales state lobbying body, is tak-
ing legal advice before seeking potential
remedies, which may include asking for
new legislation to protect the industry.
Gloucester Resources is also reviewing
the court decision.
The Australian government is a
staunch supporter of the coal industry,
which faces mounting pressure from
campaigners and investors over green-
house gas emissions. Up to now, Austral-
ian courts have dismissed arguments
that mine developments should be
halted on the grounds that the coal pro-
duced contributes to global warming.
But some legal experts say the strong
statement on climate change by Judge
Preston — the term is used almost 100
times in the ruling — may have a wider
impact on planning decisions.
Justine Bell-James, senior law lecturer
at the University of Queensland, said:
“This judgment shows how courts are
getting closer to accepting that climate
change is an important factor in plan-
ning decisions. It will no doubt be talked
about overseas and should be a highly
persuasive precedent.”
An important part of the ruling was its
rejection of the “market substitution”
defence, whereby Gloucester Resources
argued that if it did not mine the coal at
Rocky Hill it would be mined elsewhere.
Contracts & Tenders
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The Blair Athol Judge Preston held that attempting to The strong Yancoal are not able to expand their
mine in offset emissions from an actual project mines it could drive prices sharply
Queensland, with some other hypothetical project statement higher. Coal shipped from the port of
formerly owned was flawed, particularly when there was by Judge Newcastle in New South Wales has
by Rio Tinto. increasing momentum overseas to traded above $100 a tonne for most of
The company tackle climate change, said Ms Bell- Preston last year, although it has recently fallen
sold the last of James. may have back to $95.
its Australian If the ruling does set a legal precedent There is already a lack of investment
coal mines last it could have a striking impact on the a wider in new thermal coal mines as investors
year — Rio Tinto/Reuters price of the fuel. New South Wales is the impact on and banks try to burnish their environ-
world’s largest source of high-quality mental credentials by shunning fossil
thermal coal, prized by utilities in planning fuels. Rio Tinto sold the last of its Aus-
Japan, South Korea and Taiwan because decisions tralian coal mines last year.
it is more efficient and less polluting. The Minerals Council of Australia said
If big producers such as Glencore and this week it needed to step up its public
advocacy to try to change perceptions of
Planned coal projects in New South Wales an industry under siege from activists. It
has launched a TV advertising cam-
Capital investment (A$bn)
paign and is encouraging companies to
0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 enlist employees to advocate on social
Bylong Project, Kepco
media.
Shane Stephan, managing director of
Shenhua Watermark, Shenhua New Hope, a Queensland miner, blamed
a combination of “environmental activ-
Wallarah 2, Korea Resources
ists, shock jocks and journalists” for
Vickery Extension, Whitehaven Coal unfairly painting the industry as envi-
ronmental and social vandals.
Hume Coal, Posco
“We need to develop skills of emo-
Newstan Extension, Centennial Coal tional advocacy where facts are only
part of the story,” Mr Stephan said. “As
United Wambo, Glencore/Peabody Energy
an industry we need to use ways of com-
Angus Place, Centennial Coal municating that target our audience in
ways they can relate to. TV is still influ-
Source: NSW Minerals Council
ential but so is social media.”
Telecoms
Ruling puts Windstream
at risk of bankruptcy
SUJEET INDAP — NEW YORK
ROBERT SMITH — LONDON
Windstream is at risk of falling into
bankruptcy after the Arkansas-based
telecoms company lost a long-running
legal battle with a New York hedge fund
known for aggressively pursuing com-
panies over unpaid debts.
Windstream was ordered to pay more
than $300m to Aurelius Capital Man-
agement by a New York judge, who
ruled on Friday that a 2015 corporate
reorganisation had violated the terms of
its debt.
The ruling blindsided many analysts
and investors, sending Windstream’s
share price tumbling more than 50 per
cent in after-hours trading. The com-
pany is now at risk of falling into bank-
ruptcy if it is unable to overturn the
court decision.
“We are disappointed in, and frankly
surprised by, the ruling and will be tak-
ing immediate steps to pursue all availa-
ble options,” said Windstream chief
executive Tony Thomas.
The case marks a significant victory
for Aurelius, the hedge fund founded by
Mark Brodsky, a lawyer known for pur-
suing companies and countries over
unpaid debts. On top of the money
awarded to his firm, Aurelius is likely to
make a windfall due to a controversial
derivatives bet, as the hedge fund is
widely believed to have bought up cred-
it-default swaps (CDS) that pay out if
Windstream fails to honour its debt.
Analysts at research firm CreditSights
said they were surprised this CDS ploy
Financials
Beijing poised to crack down
on ‘bad loan’ bank misdeeds
GABRIEL WILDAU AND YIZHEN JIA
SHANGHAI
China is planning new rules to prevent
abuses by the country’s “bad loan”
banks, such as disguised corporate
lending or enabling commercial banks
to evade regulatory requirements by
temporarily shifting loans off their bal-
ance sheets.
The new rules are also designed to
encourage the Chinese “bad loan” banks
to increase their role in helping other
financial institutions dispose of dis-
tressed assets.
In recent days, the China Banking and
Insurance Regulatory Commission has
sought industry comment on draft rules
setting clear limits on the business areas
in which local bad-debt managers are
allowed to engage, according to images
of the document that circulated online.
Local media including Caixin and 21st
Century Business Herald have con-
firmed the document’s authenticity, cit-
ing unnamed people at the bank regula-
tor, which did not answer a request for
comment yesterday.
Commercial banks wrote down or
sold off an estimated Rmb1.75tn
($258bn) in bad debt last year, the most
in 20 years, as a slowing economy led to
more defaults. A crackdown on shadow
banking, which tightened credit condi-
tions, and stricter accounting rules that
forced lenders to become stricter in
Monday 18 February 2019
was “scarcely addressed” in the ruling.
“We, along with others in the market,
found Windstream’s arguments that
Aurelius pursued this litigation in bad
faith and in order to ensure a payout on
its CDS to be compelling,” they said.
The CDS market has been rocked by a
series of controversial trades in recent
years. Last year saw a high-profile
furore over “manufactured defaults”, a
practice pioneered by Blackstone,
where companies are offered financial
sweeteners to default in a way that
Tony Thomas:
chief says the US
group was ‘frankly
surprised’ by an
order to pay more
than $300m
triggers a windfall on their CDS.
Windstream’s legal battle centred on
its 2015 decision to spin off its telecom
infrastructure into a publicly listed
company called Uniti, which would then
lease it back to the main company.
While Windstream did this in a way it
believed would not violate terms of its
debt, which prohibited such a “sale and
leaseback” transaction, two years later
Aurelius challenged the transaction
after buying up Windstream bonds with
a face value of roughly $300m.
Judge Jesse Furman of Southern Dis-
trict of New York sided with Aurelius,
writing that the transaction constituted
a default. “[It] walks like a lease and
talks like a lease. That is because it is a
lease,” the judge said in his ruling.
their categorisation of non-performing
loans, also contributed to the increase.
In 1999, China’s finance ministry cre-
ated four dedicated bad debt managers
to buy non-performing loans from the
country’s four largest commercial
banks. These institutions remain the
largest participants in China’s bad-debt
market, but in 2012 the banking regula-
tor began allowing provincial govern-
ments to establish their own asset man-
agers to buy bad debt from regional
Some institutions have
exceeded their purpose
and engaged in disguised
corporate lending
lenders. About 60 such local bad loan
managers are operating at present.
Some of these institutions have
exceeded their purpose and engaged in
disguised corporate lending or helped
other institutions evade regulatory
requirements by shifting loans off-bal-
ance-sheet, regulators have warned.
The draft rules forbid local bad-debt
managers from helping banks conceal
the extent of bad loans or engaging in
“fake” asset disposals. Among the spe-
cific prohibitions are use of repurchase
agreements under which banks sell bad
loans to bad debt managers temporarily
but are required to buy them back later.
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18 ★ FINANCIAL TIMES Monday 18 February 2019

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-1.13% -1.87% -0.177% -0.145% -0.567% -0.10%

1.09% 0.61% 1.74% 0.55% 1.44% 0.70% 0.548% 2.20%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jan 16 - - Index All World Jan 16 - Feb 15 Index All World Jan 16 - Feb 15 Index All World Jan 16 - Feb 15 Index All World Jan 16 - Feb 15 Index All World Jan 16 - Feb 15 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,775.60 15,838.24 7,236.68
11,299.80 2,196.09
20,900.63
6,834.92 20,442.75 2,107.06
2,616.10 15,211.22 10,918.62
Day 1.09% Month 7.47% Year 2.85% Day 0.91% Month 5.26% Year 2.79% Day 0.55% Month 5.00% Year 0.06% Day 1.89% Month 3.75% Year -8.48% Day -1.13% Month 2.66% Year -1.20% Day -1.34% Month 6.37% Year -9.32%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
7,472.41 1,452.11
27,900.84
43,819.53 9,123.20 3,239.74
7,034.69 42,785.92 1,379.50 8,908.60
26,298.33 3,173.46
Day 0.61% Month 8.20% Year 4.60% Day 0.62% Month -1.41% Year -11.92% Day 1.44% Month 5.75% Year -1.57% Day NaN% Month NaN% Year NaN% Day -1.87% Month 5.95% Year -8.69% Day -0.41% Month 2.17% Year -4.72%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
25,883.25 5,153.19 20,212.34
97,326.86 2,682.39
95,351.09 19,470.38 36,374.08
24,207.16 4,794.37 2,559.64 35,808.95
Day 1.74% Month 8.25% Year 3.98% Day -0.50% Month 3.69% Year 15.70% Day 1.79% Month 8.20% Year -0.23% Day 1.90% Month 5.48% Year -9.86% Day -1.37% Month 5.78% Year -16.15% Day -0.19% Month -0.12% Year 4.84%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 37469.97 37385.75 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 22204.24 21821.27 Philippines Manila Comp 7908.89 7991.25 Taiwan Weighted Pr 10064.78 10089.01 Cross-Border DJ Global Titans ($) 306.59 303.97
Australia All Ordinaries 6148.60 6139.60 Czech RepublicPX 1058.23 1048.95 FTSE Italia Mid Cap 37383.50 37085.10 Poland Wig 59814.26 59348.40 Thailand Bangkok SET 1636.94 1652.64 Euro Stoxx 50 (Eur) 3241.25 3182.66
S&P/ASX 200 6066.10 6059.40 Denmark OMXC Copenahgen 20 980.70 975.00 FTSE MIB 20212.34 19834.96 Portugal PSI 20 5141.96 5087.46 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 1005.88 992.11
S&P/ASX 200 Res 4642.70 4639.20 Egypt EGX 30 14984.46 14949.07 Japan 2nd Section 6654.47 6617.89 PSI General 3014.22 2982.18 UAE Abu Dhabi General Index 5036.41 5026.66 FTSE 4Good Global ($) 6625.34 6556.81
Austria ATX 3023.76 2961.39 Estonia OMX Tallinn 1220.57 1216.65 Nikkei 225 20900.63 21139.71 Romania BET Index 7657.08 7642.10 UK FT 30 2974.00 2962.70 FTSE All World ($) 328.58 326.28
Belgium BEL 20 3567.98 3520.90 Finland OMX Helsinki General 9700.39 9665.05 S&P Topix 150 1292.81 1303.69 Russia Micex Index 2490.16 2460.82 FTSE 100 7236.68 7197.01 FTSE E300 1452.11 1431.43
BEL Mid 7131.70 7125.26 France CAC 40 5153.19 5062.52 Topix 1577.29 1589.81 RTX 1177.50 1156.31 FTSE 4Good UK 6566.49 6539.14 FTSE Eurotop 100 2810.43 2766.88
Brazil Bovespa 97525.91 98015.09 SBF 120 4084.66 4018.70 Jordan Amman SE 1982.04 1989.13 Saudi-Arabia TADAWUL All Share Index 8626.28 8617.22 FTSE All Share 3954.56 3934.29 FTSE Global 100 ($) 1698.69 1684.81
Canada S&P/TSX 60 944.88 936.04 Germany M-DAX 24324.40 23929.42 Kenya NSE 20 3058.29 3063.96 Singapore FTSE Straits Times 3239.74 3253.16 FTSE techMARK 100 4766.31 4769.97 FTSE Gold Min ($) 1422.24 1426.24
S&P/TSX Comp 15838.24 15695.98 TecDAX 2583.97 2564.02 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 335.74 335.70 USA DJ Composite 8550.06 8453.13 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 829.11 825.93 XETRA Dax 11299.80 11089.79 Latvia OMX Riga 979.82 980.92 Slovenia SBI TOP 833.84 834.08 DJ Industrial 25883.25 25439.39 FTSE Multinationals ($) 1913.18 1916.86
Chile S&P/CLX IGPA Gen 27310.44 27218.56 Greece Athens Gen 655.10 654.03 Lithuania OMX Vilnius 639.37 639.86 South Africa FTSE/JSE All Share 54628.41 54527.11 DJ Transport 10567.69 10537.63 FTSE World ($) 583.39 578.61
China FTSE A200 8870.75 9058.64 FTSE/ASE 20 1721.65 1716.84 Luxembourg LuxX 1439.99 1418.46 FTSE/JSE Res 20 44487.28 43996.01 DJ Utilities 738.52 735.43 FTSEurofirst 100 (Eur) 4052.30 3987.25
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 27900.84 28432.05 Malaysia FTSE Bursa KLCI 1688.83 1689.06 FTSE/JSE Top 40 48446.14 48349.82 Nasdaq 100 7055.18 7022.42 FTSEurofirst 80 (Eur) 4520.92 4439.04
Shanghai A 2809.06 2848.21 HS China Enterprise 10937.33 11170.35 Mexico IPC 42988.72 42725.22 South Korea Kospi 2196.09 2225.85 Nasdaq Cmp 7472.41 7426.96 MSCI ACWI Fr ($) 494.66 495.92
Shanghai B 280.79 282.17 HSCC Red Chip 4451.98 4527.06 Morocco MASI 11453.22 11484.88 Kospi 200 283.98 288.68 NYSE Comp 12603.48 12440.22 MSCI All World ($) 2047.56 2052.76
Shanghai Comp 2682.39 2719.70 Hungary Bux 40179.84 39898.65 Netherlands AEX 539.62 534.24 Spain IBEX 35 9123.20 8952.50 S&P 500 2775.60 2745.73 MSCI Europe (Eur) 1508.66 1510.73
Shenzhen A 1452.80 1462.59 India BSE Sensex 35808.95 35876.22 AEX All Share 797.17 789.36 Sri Lanka CSE All Share 5909.30 5932.45 Wilshire 5000 28804.29 28493.26 MSCI Pacific ($) 2607.78 2606.38
Shenzhen B 916.53 925.79 Nifty 500 8827.05 8869.30 New Zealand NZX 50 9245.65 9284.92 Sweden OMX Stockholm 30 1583.82 1562.36 Venezuela IBC 4640.24 4812.96 S&P Euro (Eur) 1511.14 1486.52
Colombia COLCAP 1476.79 1472.57 Indonesia Jakarta Comp 6389.09 6420.02 Nigeria SE All Share 32453.69 32413.92 OMX Stockholm AS 587.71 580.93 Vietnam VNI 950.89 952.34 S&P Europe 350 (Eur) 1494.16 1473.08
Croatia CROBEX 1769.31 1751.40 Ireland ISEQ Overall 5969.27 5949.75 Norway Oslo All Share 982.38 967.38 Switzerland SMI Index 9242.12 9142.71 S&P Global 1200 ($) 2303.66 2283.66
Israel Tel Aviv 125 1418.98 1420.81 Pakistan KSE 100 40486.67 40506.98 Stoxx 50 (Eur) 3004.46 2955.51
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Feb 15 %Chg %Chg Feb 15 %Chg %Chg Feb 15 %Chg %Chg Feb 15 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Amazon.com 69.3 1607.95 -14.70 Royal Dutch Shell 268.3 2443.50 -16.50 Intesa Sanpaolo 408.7 2.05 0.06 Softbank . 1532.9 10330.00 -475.00 Micro Focus Int 1680.00 10.6 -32.4 Lancashire Holdings 655.00 14.0 -5.2 Rdi Reit P.l.c. 147.00 346.1 -18.6 Automobiles & Parts 6902.63 8.2 3.4
Nvidia 58.9 157.34 2.81 Astrazeneca 204.1 6241.00 92.00 Allianz Se Na O.n. 398.2 190.14 5.94 Sony 410.0 5046.00 8.00 Astrazeneca 6241.00 9.6 22.3 Tullow Oil 230.10 13.9 12.2 Renewi 27.70 15.2 -73.1 Tobacco 34084.01 5.6 13.3
Apple 41.4 170.42 -0.38 Rio Tinto 177.6 4398.00 50.50 Unicredit 344.3 11.22 0.56 Fast Retailing Co., 324.0 48720.00 -650.00 Smurfit Kappa 2340.00 8.9 -5.3 Premier Oil 77.30 13.8 1.2 Countrywide 11.00 13.9 -79.0 Software & Computer Services 1968.09 5.3 13.4
Netflix 32.6 356.87 -2.20 Diageo 173.1 3064.50 27.50 Total 337.6 49.70 0.71 Takeda Pharmaceutical 308.8 4479.00 -9.00 Melrose Industries 170.00 8.5 -19.5 Bakkavor 158.00 12.9 -18.1 Sdl 580.00 11.1 37.4 Pharmaceuticals & Biotech. 15260.36 5.1 6.2
Microsoft 28.6 108.22 1.32 Royal Dutch Shell 166.4 2424.00 -3.00 Siemens Ag Na 302.9 94.62 2.37 Mitsubishi Ufj Fin,. 287.3 571.80 -8.30 Rolls-royce Holdings 971.40 7.7 15.3 Acacia Mining 216.30 12.6 6.6 Enquest 19.86 8.2 -21.5 Forestry & Paper 21332.96 5.0 15.9
Facebook 25.0 162.50 -1.45 Bp 164.6 543.50 2.60 Eni 296.6 15.12 0.34 Toyota Motor 268.1 6605.00 -13.00 Smith (ds) 353.50 7.5 -12.6 Indivior 113.35 12.2 -71.8 Pendragon 27.00 8.0 -5.3 Oil Equipment & Services 10565.18 4.9 1.2
Bank Of America 18.5 29.11 0.72 Glaxosmithkline 161.5 1581.00 15.00 Ing Groep N.v. 293.0 11.04 0.32 Sumitomo Mitsui Fin,. 225.7 3937.00 -33.00 Nmc Health 2774.00 7.0 -3.3 Dechra Pharmaceuticals 2568.00 10.2 26.6 Clipper Logistics 239.00 7.7 -48.6 General Industrials 5767.11 4.5 14.2
Advanced Micro Devices 18.4 23.68 0.55 Hsbc Holdings 156.1 665.90 5.00 Daimler Ag Na O.n. 280.7 50.61 1.31 Mizuho Fin,. 199.6 173.30 -1.40 British American Tobacco 2859.00 6.3 -42.1 Hunting 579.00 9.0 -4.5 Rps 175.00 7.5 -36.4 Industrial Engineering 11544.01 4.4 10.0
Coca-cola (the) 16.1 45.24 -0.35 Glencore 149.4 303.65 6.55 Bnp Paribas Act.a 278.0 42.11 1.70 Showa Denko K.k. 192.9 3745.00 -170.00 Dcc 6795.00 6.0 -9.3 Dunelm 766.00 8.7 12.4 Tarsus 265.50 7.5 -17.5 Aerospace & Defense 5037.45 4.1 15.4
Boeing (the) 15.7 417.97 8.15 Bhp 131.1 1792.80 20.80 Bayer Ag Na O.n. 275.7 68.17 2.62 Fanuc 188.3 18840.00 -115.00 Ashtead 2033.00 5.4 3.4 Weir 1567.50 8.4 -26.9 Vectura 88.50 7.1 -26.4 Chemicals 14225.51 4.0 9.0
Wpp 846.20 5.4 -36.7 Ti Fluid Systems 184.40 8.0 -27.0 Aa 92.16 6.8 -47.8 Construction & Materials 5520.05 3.8 11.2
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Bhp 1792.80 5.3 17.3 Synthomer 389.20 7.9 -19.9 Chemring 152.40 6.7 -15.3 Mining 19185.92 3.6 12.4
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Arista Networks 263.95 23.17 9.62 Acacia Mining 216.30 16.95 8.50 Bollore 3.70 0.23 6.68 Showa Shell Sekiyu K.k. 1640.00 40.00 2.50 Tui Ag 809.00 -11.4 -47.7 Plus500 Ltd 921.50 -44.0 4.5 Gulf Marine Services 19.23 -12.6 -57.4 Health Care Equip.& Services 6768.19 -3.9 -2.3
Centurylink 13.74 0.96 7.51 Melrose Industries 170.00 9.00 5.59 Telecom Italia 0.51 0.03 6.40 Asahi Holdings, 4742.00 105.00 2.26 Standard Life Aberdeen 233.75 -4.4 -51.9 Convatec 118.55 -16.5 -41.8 Petra Diamonds 26.66 -11.1 -47.5 Real Estate & Investment Servic 2521.11 -1.3 7.7
American Int 42.32 2.13 5.30 Indivior 113.35 5.85 5.44 Telecom Italia R 0.44 0.03 6.03 Amada Co., 1127.00 24.00 2.18 Smith & Nephew 1451.00 -4.2 14.9 Tbc Bank 1316.00 -6.5 -24.7 Nostrum Oil & Gas 103.40 -9.8 -67.9 Food & Drug Retailers 3805.21 -0.5 15.5
Newfield Exploration 17.07 0.72 4.40 Bakkavor 158.00 6.60 4.36 Vivendi 24.01 1.28 5.63 Shionogi & Co., 6849.00 125.00 1.86 Paddy Power Betfair 6190.00 -2.9 -30.4 Drax 372.40 -6.4 36.8 Carpetright 18.03 -9.0 -56.8 Real Estate Investment Trusts 2862.93 -0.3 9.1
Dish Network 30.90 1.20 4.04 Restaurant 135.30 5.50 4.24 Commerzbank Ag 6.67 0.35 5.52 Dic 3430.00 60.00 1.78 Next 4724.00 -2.7 5.0 Restaurant 135.30 -5.5 -37.3 Cmc Markets 108.00 -7.7 -30.0 Food Producers 6963.04 -0.3 7.9
Coca-cola Hbc Ag 2562.00 -2.2 7.7 Cls Holdings 229.00 -5.4 -5.2 Allied Minds 56.00 -7.0 -66.1 Gas Water & Multiutilities 4989.00 -0.2 8.5
Downs Downs Downs Downs
Severn Trent 1945.00 -2.0 -9.0 Udg Healthcare 587.00 -3.8 -29.9 Soco Int 71.60 -6.2 -37.7 Oil & Gas Producers 8999.41 0.4 6.8
Newell Brands 17.16 -4.53 -20.89 Plus500 Ltd 921.50 -128.50 -12.24 Edf 13.99 -0.85 -5.76 Trend Micro orporated 5100.00 -500.00 -8.93
Sainsbury (j) 286.20 -2.0 18.7 Civitas Social Housing 99.60 -3.3 -11.9 Purecircle 260.00 -6.1 -43.5 General Financial 9851.73 0.5 5.9
Mattel 13.82 -3.09 -18.27 Drax 372.40 -23.60 -5.96 Hennes & Mauritz Ab, H & M Ser. B 13.03 -0.19 -1.47 Dentsu . 4725.00 -395.00 -7.71
Morrison (wm) Supermarkets 237.70 -1.7 8.5 Derwent London 3162.00 -2.7 2.3 Trifast 185.00 -5.6 -25.7 Travel & Leisure 9313.53 0.6 5.2
Applied Materials 39.10 -1.61 -3.95 Standard Life Aberdeen 233.75 -14.80 -5.95 Endesa 21.51 -0.29 -1.33 Kubota 1538.50 -116.50 -7.04
Associated British Foods 2266.00 -1.5 -18.5 Millennium & Copthorne Hotels 465.50 -2.6 -19.6 On The Beach 432.50 -5.0 -9.5 Household Goods 15918.02 0.7 7.0
Under Armour 19.04 -0.74 -3.74 Kingfisher 225.50 -7.10 -3.05 Red Ele. 19.37 -0.23 -1.20 Tokai Carbon Co., 1515.00 -96.00 -5.96
Segro 640.00 -1.5 10.5 Capital & Counties Properties 247.10 -2.6 -21.7 Consort Medical 905.00 -5.0 -22.6 Index - Technology Hardware & Equipment 1170.46 1.2 26.0
Hasbro 86.40 -3.35 -3.73 Domino's Pizza 247.20 -7.30 -2.87 Ses 17.98 -0.18 -0.99 Kirin Holdings , 2514.50 -158.50 -5.93
Gvc Holdings 640.50 -1.1 -32.2 William Hill 173.60 -2.4 -45.8 Mears 281.50 -4.9 -30.1 General Retailers 2133.75 1.3 15.6
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Feb 15 Currency Mid Change Mid Change Mid Change Feb 15 Currency Mid Change Mid Change Mid Change Feb 15 Currency Mid Change Mid Change Mid Change Feb 15 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 38.3750 -0.0200 43.2239 -0.0664 49.3024 0.2315 Indonesia Indonesian Rupiah 14142.5000 52.5000 15929.4770 43.0207 18169.6280 161.8306 Poland Polish Zloty 3.8465 -0.0021 4.3325 -0.0068 4.9418 0.0230 ..Three Month 0.7789 -0.0041 0.8764 -0.0055 - -
Australia Australian Dollar 1.4046 -0.0049 1.5821 -0.0071 1.8046 0.0032 Israel Israeli Shekel 3.6179 -0.0367 4.0750 -0.0456 4.6480 -0.0227 Romania Romanian Leu 4.2083 0.0014 4.7400 -0.0032 5.4066 0.0300 ..One Year 0.7807 -0.0041 0.8755 -0.0055 - -
Bahrain Bahrainin Dinar 0.3770 - 0.4246 -0.0004 0.4844 0.0025 Japan Japanese Yen 110.5550 -0.1600 124.5241 -0.3068 142.0358 0.5362 Russia Russian Ruble 66.6225 -0.5232 75.0405 -0.6660 85.5934 -0.2223 United States United States Dollar - - 1.1264 -0.0011 1.2848 0.0067
Bolivia Bolivian Boliviano 6.9100 - 7.7831 -0.0079 8.8776 0.0463 ..One Month 110.5548 -0.1605 124.5241 -0.3067 142.0357 0.5359 Saudi Arabia Saudi Riyal 3.7504 - 4.2242 -0.0043 4.8183 0.0251 ..One Month - - 1.1261 -0.1517 1.2849 0.0067
Brazil Brazilian Real 3.7182 -0.0447 4.1880 -0.0546 4.7769 -0.0322 ..Three Month 110.5542 -0.1616 124.5242 -0.3067 142.0354 0.5354 Singapore Singapore Dollar 1.3583 -0.0005 1.5299 -0.0021 1.7451 0.0085 ..Three Month - - 1.1255 -0.1517 1.2853 0.0067
Canada Canadian Dollar 1.3280 -0.0040 1.4958 -0.0060 1.7062 0.0038 ..One Year 110.5517 -0.1667 124.5242 -0.3066 142.0357 0.5343 South Africa South African Rand 14.1438 -0.1075 15.9309 -0.1374 18.1712 -0.0426 ..One Year - - 1.1228 -0.1517 1.2871 0.0067
Chile Chilean Peso 662.7450 -3.1700 746.4858 -4.3317 851.4634 0.3885 Kenya Kenyan Shilling 100.2500 - 112.9170 -0.1146 128.7964 0.6716 South Korea South Korean Won 1128.7500 3.6000 1271.3727 2.7690 1450.1646 12.1629 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 6.7807 0.0096 7.6375 0.0031 8.7115 0.0577 Kuwait Kuwaiti Dinar 0.3040 0.0001 0.3424 -0.0002 0.3906 0.0022 Sweden Swedish Krona 9.2900 -0.0211 10.4638 -0.0344 11.9354 0.0353 Vietnam Vietnamese Dong 23201.5000 -0.5000 26133.1326 -27.0725 29808.2140 154.7737
Colombia Colombian Peso 3138.9950 -22.8250 3535.6216 -29.3226 4032.8321 -8.1434 Malaysia Malaysian Ringgit 4.0885 0.0125 4.6051 0.0094 5.2527 0.0434 Switzerland Swiss Franc 1.0070 -0.0002 1.1342 -0.0014 1.2937 0.0065 European Union Euro 0.8878 0.0009 - - 1.1406 0.0071
Costa Rica Costa Rican Colon 609.7950 -0.2050 686.8453 -0.9281 783.4357 3.8232 Mexico Mexican Peso 19.3623 -0.0343 21.8088 -0.0607 24.8757 0.0859 Taiwan New Taiwan Dollar 30.8370 0.0075 34.7334 -0.0268 39.6179 0.2162 ..One Month 0.8876 0.0009 - - 1.1405 0.0071
Czech Republic Czech Koruna 22.8091 -0.0819 25.6911 -0.1184 29.3040 0.0482 New Zealand New Zealand Dollar 1.4598 -0.0046 1.6442 -0.0068 1.8754 0.0039 Thailand Thai Baht 31.2775 -0.0875 35.2296 -0.1344 40.1838 0.0977 ..Three Month 0.8870 0.0009 - - 1.1404 0.0071
Denmark Danish Krone 6.6244 0.0073 7.4615 0.0007 8.5108 0.0538 Nigeria Nigerian Naira 361.2000 -0.0500 406.8392 -0.4692 464.0526 2.3559 Tunisia Tunisian Dinar 3.0644 -0.0004 3.4515 -0.0040 3.9369 0.0200 ..One Year 0.8842 0.0009 - - 1.1394 0.0071
Egypt Egyptian Pound 17.5370 0.0265 19.7529 0.0098 22.5307 0.1514 Norway Norwegian Krone 8.6588 -0.0104 9.7528 -0.0216 11.1244 0.0448 Turkey Turkish Lira 5.2976 -0.0119 5.9670 -0.0194 6.8061 0.0203
Hong Kong Hong Kong Dollar 7.8476 0.0000 8.8392 -0.0089 10.0822 0.0526 Pakistan Pakistani Rupee 138.5800 -0.2700 156.0902 -0.4628 178.0410 0.5833 United Arab Emirates UAE Dirham 3.6732 - 4.1373 -0.0042 4.7191 0.0246
Hungary Hungarian Forint 282.6742 -0.7627 318.3913 -1.1830 363.1663 0.9189 Peru Peruvian Nuevo Sol 3.3285 -0.0160 3.7491 -0.0218 4.2763 0.0018 United Kingdom Pound Sterling 0.7784 -0.0041 0.8767 -0.0055 - -
India Indian Rupee 71.2700 0.1738 80.2753 0.1144 91.5643 0.6995 Philippines Philippine Peso 52.4450 0.0900 59.0717 0.0415 67.3788 0.4664 ..One Month 0.7785 -0.0041 0.8766 -0.0055 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Feb 15 Feb 14 Feb 13 Feb 12 Feb 11 Yr Ago High Low Year to date percentage changes Closing Week's Closing Week's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2974.00 2962.70 2971.80 2953.00 2956.50 0.00 2985.20 2704.70 Tech Hardware & Eq 22.21 Industrial Eng 9.22 Oil & Gas 6.60 FTSE 100 Price Change FTSE 100 Price Change
Feb 15 chge% Index Feb 14 Feb 13 ago yield% Cover ratio adj Return FT 30 Div Yield 2.03 2.04 2.04 2.06 2.06 0.00 3.93 2.74 Forestry & Paper 16.01 Consumer Goods 9.00 Real Est Invest & Se 6.49 3I Group PLC 947.00 42.20 Legal & General Group PLC 266.40 5.20
FTSE 100 (100) 7236.68 0.55 6430.84 7197.01 7190.84 7294.70 4.39 1.99 11.47 23.98 6421.70 P/E Ratio net 21.97 21.86 21.88 21.68 21.67 0.00 19.44 14.26 Industrial Metals & 15.63 Support Services 8.96 Pharmace & Biotech 6.20 Admiral Group PLC 2144 4.00 Lloyds Banking Group PLC 58.44 1.56
FTSE 250 (250) 18987.23 0.47 16872.91 18898.20 18972.62 19733.64 3.14 1.94 16.43 34.91 14369.16 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Food & Drug Retailer 15.57 Utilities 8.77 Financial Services 5.43 Anglo American PLC 1951.2 16.40 London Stock Exchange Group PLC 4685 109.00
FTSE 250 ex Inv Co (193) 19982.85 0.39 17757.66 19905.19 19993.79 21122.39 3.35 1.79 16.66 33.76 15439.33 FT 30 hourly changes Aerospace & Defense 15.19 Gas Water & Multi 8.53 Banks 5.37 Antofagasta PLC 873.20 1.80 Marks And Spencer Group PLC 285.50 0.50
FTSE 350 (350) 4008.98 0.54 3562.56 3987.52 3987.17 4060.72 4.19 1.98 12.05 12.34 7121.34 8 9 10 11 12 13 14 15 16 High Low General Retailers 14.74 FTSE 250 Index 8.49 Media 5.37 Ashtead Group PLC 2033 104.50 Melrose Industries PLC 170.00 13.25
FTSE 350 ex Investment Trusts (292) 3964.35 0.53 3522.90 3943.39 3942.77 4022.77 4.26 1.95 12.03 12.32 3630.43 2962.7 2961.7 2967.4 2968.9 2970.3 2975.6 2980.5 2977.3 2973.8 2984.5 2955.9 Tobacco 13.56 Chemicals 8.48 Health Care 5.25 Associated British Foods PLC 2266 -34.00 Micro Focus International PLC 1680 160.50
FTSE 350 Higher Yield (103) 3637.68 0.54 3232.60 3618.07 3612.63 3689.82 5.70 1.84 9.53 15.62 6914.58 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Technology 12.93 Real Est Invest & Tr 8.39 Travel & Leisure 5.09 Astrazeneca PLC 6241 545.00 Mondi PLC 1895 91.50
FTSE 350 Lower Yield (247) 4014.64 0.53 3567.59 3993.30 3999.56 4057.65 2.42 2.37 17.44 6.64 4555.80 Software & Comp Serv 12.48 NON FINANCIALS Index 7.94 FTSE SmallCap Index 5.02 Auto Trader Group PLC 454.20 1.00 Morrison (Wm) Supermarkets PLC 237.70 -4.05
FTSE SmallCap (283) 5437.01 -0.09 4831.57 5441.98 5419.60 5763.98 3.78 1.65 15.99 17.80 8180.05 Mining 12.29 Consumer Services 7.88 Personal Goods 4.71
FTSE SmallCap ex Inv Co (158) 4466.18 -0.30 3968.85 4479.67 4457.78 4970.29 4.12 1.59 15.26 7.98 7058.27 FX: EFFECTIVE INDICES Basic Materials 12.10 Food Producers 7.73 Nonlife Insurance 4.12
Aviva PLC 423.30 5.40 National Grid PLC 842.20 0.00
Bae Systems PLC 527.00 6.80 Next PLC 4724 -129.00
FTSE All-Share (633) 3954.56 0.52 3514.20 3934.29 3933.36 4012.28 4.17 1.97 12.16 12.20 7099.88
Feb 14 Feb 13 Mnth Ago Feb 15 Feb 14 Mnth Ago Construct & Material 11.35 Industrial Transport 7.64 Leisure Goods 4.08 Barclays PLC 159.50 3.56 Nmc Health PLC 2774 182.00
FTSE All-Share ex Inv Co (450) 3884.21 0.51 3451.69 3864.34 3863.35 3949.13 4.26 1.94 12.08 11.97 3614.11 Industrials 10.86 FTSE All{HY-}Share Index 7.61 Automobiles & Parts 2.95 Barratt Developments PLC 563.60 0.60 Ocado Group PLC 905.80 1.40
FTSE All-Share ex Multinationals (564) 1138.49 0.49 838.52 1132.92 1136.21 1221.68 4.02 1.57 15.82 2.29 2147.96 Australia - - - Sweden - - - Life Insurance 10.77 FTSE 100 Index 7.56 Oil Equipment & Serv 1.29 Berkeley Group Holdings (The) PLC 3821 24.00 Paddy Power Betfair PLC 6190 -185.00
FTSE Fledgling (95) 10327.64 -0.03 9177.60 10330.42 10306.34 10818.85 3.46 0.07 410.61 38.39 20227.93 Canada - - - Switzerland - - - Electricity 9.60 Equity Invest Instr 7.21 Health Care Eq & Srv -1.91 Bhp Group PLC 1792.8 89.80 Pearson PLC 920.60 -5.80
FTSE Fledgling ex Inv Co (46) 14748.55 -0.21 13106.23 14779.59 14724.06 15362.87 4.48 -2.61 -8.58 47.48 28311.88 Denmark - - - UK 77.76 78.27 77.05 Electronic & Elec Eq 9.35 Household Goods & Ho 7.09 Fixed Line Telecomms -3.30 BP PLC 543.50 -0.50 Persimmon PLC 2405 6.00
FTSE All-Small (378) 3794.29 -0.09 3371.78 3797.64 3782.35 4019.90 3.77 1.58 16.79 12.51 7326.01 Japan - - - USA - - - Beverages 9.25 Oil & Gas Producers 6.69 Telecommunications -6.09 British American Tobacco PLC 2859 170.00 Prudential PLC 1532.5 54.50
FTSE All-Small ex Inv Co (204) 3368.10 -0.30 2993.04 3378.17 3361.78 3738.17 4.13 1.44 16.80 6.18 6743.55 New Zealand - - - Euro - - - Financials 6.67 Mobile Telecomms -7.51 British Land Company PLC 586.40 11.20 Reckitt Benckiser Group PLC 6017 99.00
FTSE AIM All-Share (785) 907.59 -0.45 806.53 911.66 910.48 1038.88 1.57 1.26 50.49 0.90 1019.61 Norway - - -
Bt Group PLC 231.20 3.25 Relx PLC 1720 -1.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Bunzl PLC 2488 34.00 Rentokil Initial PLC 352.50 -0.60
Oil & Gas (15) 9338.31 -0.03 8298.45 9341.51 9464.34 8555.89 5.40 1.52 12.21 126.48 9503.65 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Burberry Group PLC 1953 84.00 Rightmove PLC 479.25 9.45
Oil & Gas Producers (10) 9031.33 -0.07 8025.64 9037.41 9160.09 8239.26 5.42 1.53 12.07 124.46 9525.08 Carnival PLC 4338 108.00 Rio Tinto PLC 4398 133.00
Oil Equipment Services & Distribution (5)11011.90 1.90 9785.67 10806.78 10679.09 12568.82 4.49 0.61 36.57 0.00 8981.34 FTSE GLOBAL EQUITY INDEX SERIES Centrica PLC 137.55 1.35 Rolls-Royce Holdings PLC 971.40 69.80
Basic Materials (27) 6478.00 1.34 5756.64 6392.04 6400.34 6411.65 4.57 2.46 8.89 1.42 7060.29 Coca-Cola Hbc AG 2562 -58.00 Royal Bank Of Scotland Group PLC 247.50 8.40
Chemicals (8) 15154.81 1.22 13467.24 14972.25 14895.54 15119.75 2.11 2.34 20.24 33.44 14001.87 Feb 15 No of US $ Day Mth YTD Total
YTD Gr Div Feb 15 No of US $ Day Mth YTD Total YTD Gr Div Compass Group PLC 1743.5 -5.50 Royal Dutch Shell PLC 2443.5 0.50
Forestry & Paper (1) 23278.18 -0.13 20686.04 23308.89 23075.49 21896.83 3.01 3.13 10.62 0.00 26350.32 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Crh PLC 2364 58.00 Royal Dutch Shell PLC 2424 10.00
Industrial Metals & Mining (2) 5603.04 2.87 4979.11 5446.88 5571.77 4599.43 12.44 1.45 5.54 0.00 6001.14 FTSE Global All Cap 7843 562.92 0.7 5.0 9.6 830.39
9.8 2.5 Oil & Gas Producers 107 364.49 1.4 1.4 11.0 637.48 11.7 3.8 Croda International PLC 5158 146.00 Rsa Insurance Group PLC 536.00 7.00
Mining (16) 18311.35 1.39 16272.29 18059.66 18097.46 18203.33 4.75 2.51 8.39 0.00 10479.72 FTSE Global Large Cap 1432 497.35 0.7 4.7 8.9 754.17
9.1 2.6 Oil Equipment & Services 32 263.73 1.0 1.0 18.3 405.76 19.2 4.2 Dcc PLC 6795 385.00 Sage Group PLC 659.00 17.40
FTSE Global Mid Cap 1762 745.46 0.7 5.5 10.8 1038.45
10.9 2.3 Basic Materials 254 480.75 0.8 0.8 7.4 766.17 7.5 3.3 Diageo PLC 3064.5 82.50 Sainsbury (J) PLC 286.20 -5.70
Industrials (103) 5203.07 0.53 4623.68 5175.51 5164.43 5340.72 2.65 1.82 20.74 3.08 5562.79
Construction & Materials (15) 5794.41 1.31 5149.17 5719.40 5739.39 6554.15 2.88 0.39 88.67 0.00 6375.60 FTSE Global Small Cap 4649 793.75 0.8 6.9 13.3 1067.65
13.5 2.0 Chemicals 118 701.15 1.0 1.0 6.0 1116.25 6.0 2.8 Direct Line Insurance Group PLC 350.20 6.90 Schroders PLC 2698 107.00
Aerospace & Defense (10) 5225.48 1.01 4643.59 5173.03 5112.21 5132.22 2.57 3.22 12.11 1.62 5779.58 FTSE All-World 3194 328.58 0.7 4.8 9.2 512.48
9.4 2.5 Forestry & Paper 17 286.68 0.7 0.7 15.7 509.32 15.9 3.3 Easyjet PLC 1278.5 -3.00 Scottish Mortgage Investment Trust PLC 498.80 16.05
General Industrials (8) 4658.80 0.27 4140.02 4646.49 4686.30 5143.26 3.29 1.24 24.46 0.51 5550.57 FTSE World 2599 583.39 0.8 5.0 9.4 1221.65
9.6 2.5 Industrial Metals & Mining 66 375.66 0.2 0.2 5.0 598.79 5.1 4.2 Evraz PLC 534.00 16.40 Segro PLC 640.00 -9.60
Electronic & Electrical Equipment (10) 8212.46 -0.05 7297.96 8216.35 8212.80 7970.51 1.71 2.20 26.55 0.00 7696.24 FTSE Global All Cap ex UNITED KINGDOM In 7527 587.11 0.7 5.0 9.7 851.67
9.9 2.4 Mining 53 648.40 0.9 0.9 10.8 1043.26 10.8 4.0 Experian PLC 2027 49.00 Severn Trent PLC 1945 -40.00
Industrial Engineering (11) 12714.14 0.58 11298.36 12640.45 12581.04 13724.95 2.35 1.68 25.31 0.00 15993.51 FTSE Global All Cap ex USA 5993 470.22 0.3 3.0 7.3 747.71
7.4 3.2 Industrials 574 394.36 0.8 0.8 12.5 585.38 12.6 2.1 Ferguson PLC 5473 211.00 Smith & Nephew PLC 1451 -64.00
Industrial Transportation (6) 3686.21 1.53 3275.73 3630.76 3648.86 5644.01 5.77 0.80 21.61 0.00 3527.52 FTSE Global All Cap ex JAPAN 6508 578.91 0.8 5.5 10.0 862.37
10.3 2.5 Construction & Materials 117 474.59 0.4 0.4 7.5 734.91 7.6 2.4 Fresnillo PLC 969.60 27.40 Smith (Ds) PLC 353.50 24.70
Support Services (43) 7715.85 0.12 6856.65 7706.52 7689.64 7431.82 2.44 2.04 20.10 9.39 8301.22 FTSE Global All Cap ex Eurozone 7159 588.07 0.6 5.2 9.9 850.50
10.1 2.4 Aerospace & Defense 29 853.34 2.1 2.1 20.8 1253.43 21.1 1.9 Glaxosmithkline PLC 1581 16.20 Smiths Group PLC 1491.5 27.00
FTSE Developed 2172 531.22 0.9 5.1 9.5 790.32
9.7 2.5 General Industrials 57 208.97 1.0 1.0 10.3 338.06 11.0 2.6 Glencore PLC 303.65 11.60 Smurfit Kappa Group PLC 2340 192.00
Consumer Goods (43) 19015.99 0.63 16898.46 18897.32 18944.31 20313.80 4.20 4.11 5.79 26.39 14914.18
FTSE Developed All Cap 5729 558.72 0.9 5.4 10.0 820.39
10.2 2.4 Electronic & Electrical Equipment 78 423.80 0.3 0.3 13.0 572.81 13.0 1.6 Gvc Holdings PLC 640.50 -7.00 Spirax-Sarco Engineering PLC 6680 170.00
Automobiles & Parts (2) 6938.00 3.07 6165.42 6731.47 6657.82 9617.91 0.78 0.00 0.00 0.00 6947.30
FTSE Developed Large Cap 921 492.06 0.9 5.0 9.2 744.22
9.4 2.6 Industrial Engineering 107 727.30 0.7 0.7 10.2 1066.21 10.3 2.5 Halma PLC 1500 23.00 Sse PLC 1198.5 27.50
Beverages (5) 24371.81 1.06 21657.89 24117.28 24150.79 20172.04 2.15 1.72 27.13 2.94 17874.33
FTSE Developed Europe Large Cap 242 344.14 1.4 4.3 7.4 604.61
7.7 3.7 Industrial Transportation 101 697.51 0.3 0.3 13.2 1037.88 13.3 2.2 Hargreaves Lansdown PLC 1665 31.50 St. James's Place PLC 949.20 25.80
Food Producers (12) 7016.88 -0.06 6235.52 7020.83 7093.53 7640.28 2.58 2.15 17.98 14.29 6279.65
FTSE Developed Europe Mid Cap 347 562.03 0.9 3.8 8.4 874.77
8.5 3.1 Support Services 85 414.13 0.7 0.7 12.0 585.33 12.0 1.6 Hikma Pharmaceuticals PLC 1759 69.00 Standard Chartered PLC 637.90 19.90
Household Goods & Home Construction (15)13340.60 0.18 11855.06 13316.94 13443.73 14288.03 4.55 2.23 9.89 3.47 10035.14
FTSE Dev Europe Small Cap 738 773.40 0.8 2.5 8.1 1162.91
8.2 3.0 Consumer Goods 430 452.56 0.4 0.4 6.9 695.86 7.0 2.8 Hiscox LTD 1556 63.00 Standard Life Aberdeen PLC 233.75 -10.65
Leisure Goods (2) 9449.71 0.09 8397.44 9441.00 9269.63 9023.44 4.82 1.39 14.88 60.11 9361.18
FTSE North America Large Cap 286 595.49 1.1 6.1 10.4 838.08
10.7 2.1 Automobiles & Parts 107 358.06 0.3 0.3 5.8 533.83 5.9 3.3 HSBC Holdings PLC 665.90 24.00 Taylor Wimpey PLC 164.15 -0.30
Personal Goods (5) 32062.66 -0.02 28492.33 32067.59 32169.71 28976.96 3.06 2.74 11.92 214.58 22815.27
FTSE North America Mid Cap 396 844.92 1.0 7.7 13.8 1100.46
14.0 1.8 Beverages 45 630.36 0.7 0.7 5.5 979.88 5.5 2.6 Imperial Brands PLC 2651.5 114.00 Tesco PLC 224.20 0.00
Tobacco (2) 34084.07 1.10 30288.64 33714.26 33595.30 47800.14 6.84 6.32 2.31 0.00 23955.18
FTSE North America Small Cap 1377 883.39 1.2 9.1 17.0 1114.85
17.2 1.6 Food Producers 106 596.46 0.7 0.7 6.7 938.17 6.8 2.6 Informa PLC 704.60 24.60 Tui AG 809.00 -104.40
Health Care (19) 10959.91 1.01 9739.47 10850.70 10490.44 8933.18 3.71 0.99 27.19 1.55 8893.39
FTSE North America 682 395.16 1.1 6.4 11.0 568.63
11.3 2.0 Household Goods & Home Construction 44 426.61 -0.2 -0.2 6.5 653.78 7.0 2.8 Intercontinental Hotels Group PLC 4639 219.50 Unilever PLC 4249 72.50
Health Care Equipment & Services (9) 6885.95 -0.55 6119.16 6924.13 7047.74 7760.70 1.93 2.65 19.57 8.94 6118.81
FTSE Developed ex North America 1490 246.47 0.5 3.1 7.0 421.76
7.2 3.3 Leisure Goods 31 192.63 -0.9 -0.9 4.1 258.92 4.1 1.2 International Consolidated Airlines Group S.A. 663.80 8.80 United Utilities Group PLC 817.00 -3.60
Pharmaceuticals & Biotechnology (10)15148.93 1.20 13462.02 14969.26 14377.17 11869.73 3.93 0.89 28.55 0.00 10997.76
FTSE Japan Large Cap 198 355.10 -0.7 0.1 5.0 474.81
5.0 2.4 Personal Goods 84 778.09 0.5 0.5 8.6 1123.15 8.7 2.0 Intertek Group PLC 5188 138.00 Vodafone Group PLC 141.20 2.52
Consumer Services (91) 5046.00 -0.01 4484.11 5046.61 5052.36 5100.23 2.98 1.86 18.06 14.97 4947.91 FTSE Japan Mid Cap 320 578.12 -0.5 0.7 4.5 737.10
4.5 2.0 Tobacco 13 995.57 0.9 0.9 11.6 2214.81 11.6 5.9
Food & Drug Retailers (6) 3955.28 1.74 3514.84 3887.69 3899.15 3412.05 1.88 2.04 26.13 0.00 4752.04 Itv PLC 133.10 2.45 Whitbread PLC 4965 122.00
FTSE Global wi JAPAN Small Cap 817 621.88 -0.5 1.6 5.3 820.67
5.3 2.1 Health Care 200 542.20 1.2 1.2 6.8 804.18 7.0 2.0 Johnson Matthey PLC 3095 141.00 Wood Group (John) PLC 523.20 23.50
General Retailers (27) 2074.11 -0.74 1843.14 2089.57 2107.95 2471.97 3.86 1.29 20.14 2.29 2504.01
FTSE Japan 518 150.41 -0.7 0.2 4.9 225.38
4.9 2.3 Health Care Equipment & Services 77 1023.90 1.4 1.4 10.1 1211.52 10.1 1.0 Kingfisher PLC 225.50 1.90 Wpp PLC 846.20 43.40
Media (19) 8138.02 -0.64 7231.81 8190.74 8121.43 7662.85 3.10 2.11 15.29 2.69 5226.58
FTSE Asia Pacific Large Cap ex Japan 528 667.03 -1.1 3.3 6.8 1095.31
7.0 3.1 Pharmaceuticals & Biotechnology 123 367.41 1.1 1.1 5.3 573.50 5.5 2.5 Land Securities Group PLC 888.40 10.60
Travel & Leisure (39) 9116.31 0.13 8101.16 9104.83 9151.66 9634.64 2.98 1.87 17.92 60.89 9058.11
FTSE Asia Pacific Mid Cap ex Japan 477 841.90 -0.8 2.1 5.1 1326.49
5.1 3.3 Consumer Services 400 488.87 0.6 0.6 9.3 668.63 9.4 1.5
Telecommunications (6) 2278.36 0.98 2024.66 2256.18 2256.84 2925.97 8.19 0.78 15.70 0.00 2843.06 FTSE Asia Pacific Small Cap ex Japan 1461 529.66 -0.4 4.0 6.1 817.13
6.2 3.0 Food & Drug Retailers 58 282.97 1.3 1.3 7.9 408.94 8.3 2.3
Fixed Line Telecommunications (4) 2725.14 0.81 2421.69 2703.18 2706.94 2706.37 6.34 1.47 10.74 0.00 2753.31
Mobile Telecommunications (2) 3128.35 1.08 2779.99 3095.06 3094.15 4505.62 9.18 0.52 20.85 0.00 3521.14
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
1005 524.26
2114 719.25
-1.1
-0.6
3.2
2.1
6.6 914.48
6.7
6.2 1119.84
6.3
3.1 General Retailers
3.0 Media
133 767.53
77 334.62
0.2
1.1
0.2
1.1
10.7 1016.10
8.0 459.49
10.8
8.1
1.1
1.7
UK STOCK MARKET TRADING DATA
Utilities (8) 7019.35 -0.79 6237.71 7075.33 7039.84 6341.79 6.19 1.26 12.81 39.05 8798.11 FTSE Emerging Large Cap 511 688.42 -0.7 2.1 6.3 1079.30
6.4 2.9 Travel & Leisure 132 472.32 0.6 0.6 8.1 656.36 8.3 1.9 Feb 15 Feb 14 Feb 13 Feb 12 Feb 11 Yr Ago
Electricity (3) 7205.09 -0.56 6402.77 7245.39 7231.00 6988.49 7.40 0.38 36.02 153.79 11757.16 FTSE Emerging Mid Cap 511 886.60 -0.2 1.6 6.1 1374.42
6.2 3.5 Telecommunication 90 147.52 0.9 0.9 3.0 296.05 3.5 4.8 - - - - - -
Gas Water & Multiutilities (5) 6593.47 -0.86 5859.25 6650.51 6611.44 5833.09 5.85 1.58 10.83 7.14 8201.48 FTSE Emerging Small Cap 1092 698.10 -0.5 2.4 5.1 1041.30
5.2 3.3 Fixed Line Telecommuniations 38 120.02 1.8 1.8 1.5 267.94 2.3 5.5 Order Book Turnover (m) 130.99 - - - - -
Financials (304) 4804.28 0.71 4269.30 4770.49 4785.99 5302.87 4.12 1.68 14.44 5.83 4712.07 FTSE Emerging Europe 86 357.99 1.8 3.9 9.7 602.86
10.0 5.4 Mobile Telecommunications 52 161.26 -0.3 -0.3 5.1 286.54 5.1 3.7 Order Book Bargains 847900.00 - - - - -
Banks (10) 3853.21 1.18 3424.13 3808.45 3812.85 4540.92 4.72 1.37 15.45 0.62 3036.39 FTSE Latin America All Cap 242 945.03 0.8 2.0 12.3 1524.44
12.4 2.9 Utilities 164 284.08 0.1 0.1 5.8 584.06 6.1 3.5 Order Book Shares Traded (m) 1146.00 - - - - -
Nonlife Insurance (9) 3663.79 0.78 3255.81 3635.54 3651.03 3541.86 3.43 1.45 20.02 0.00 6775.44 FTSE Middle East and Africa All Cap 258 655.46 0.6 -2.5 3.0 1067.08
3.2 3.5 Electricity 110 314.58 0.2 0.2 5.1 638.68 5.6 3.5 Total Equity Turnover (£m) 5316.20 - - - - -
Life Insurance/Assurance (7) 7591.56 0.86 6746.21 7527.11 7611.07 8820.48 4.63 1.47 14.64 0.00 7865.59 FTSE Global wi UNITED KINGDOM All Cap In 316 328.05 1.1 5.0 8.7 583.96
9.0 4.3 Gas Water & Multiutilities 54 293.79 0.1 0.1 7.1 621.46 7.3 3.7 Total Mkt Bargains 1013352.00 - - - - -
Real Estate Investment & Services (18) 2503.40 0.28 2224.63 2496.32 2523.37 2746.51 3.58 2.16 12.96 1.99 6955.78 FTSE Global wi USA All Cap 1850 684.05 1.1 6.8 11.6 931.68
11.9 1.9 Financials 731 237.96 1.0 1.0 8.8 406.81 9.1 3.3 Total Shares Traded (m) 4026.00 - - - - -
Real Estate Investment Trusts (39) 2606.01 -0.29 2315.82 2613.67 2611.42 2694.96 4.34 1.58 14.62 8.36 3471.31 FTSE Europe All Cap 1483 404.48 1.3 4.0 7.7 684.51
7.9 3.6 Banks 244 199.91 1.3 1.3 8.6 370.14 9.0 4.0 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (38) 8402.30 -0.03 7466.66 8404.67 8471.04 9154.43 4.22 2.11 11.24 18.44 10141.35 FTSE Eurozone All Cap 684 388.07 1.5 3.9 7.1 658.28
7.3 3.4 Nonlife Insurance 72 270.31 1.3 1.3 5.5 405.34 5.7 2.4 (c) Market closed.
Equity Investment Instruments (183) 10193.87 0.53 9058.73 10139.84 10141.10 9917.93 2.56 2.82 13.89 32.10 5810.90 FTSE RAFI All World 3000 3148 6616.25 0.8 4.1 8.8 9148.39
9.0 3.2 Life Insurance 56 218.62 0.3 0.3 9.3 365.31 9.4 3.4
Non Financials (329) 4711.53 0.45 4186.88 4690.54 4683.70 4637.07 4.19 2.07 11.52 17.63 7418.36 FTSE RAFI US 1000 1019 11459.83 1.3 6.3 10.9 15624.97
11.3 2.6 Financial Services 165 305.95 1.0 1.0 10.3 433.81 10.5 2.0
Technology (17) 1971.76 -0.48 1752.19 1981.19 1905.19 2061.20 2.59 1.42 27.19 10.91 2641.43 FTSE EDHEC-Risk Efficient All-World 3194 392.07 0.6 5.0 9.4 564.89
9.6 2.5 Technology 205 282.45 0.0 0.0 11.7 354.03 11.9 1.5 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 2187.06 -0.50 1943.52 2197.98 2110.34 2370.73 2.64 1.41 26.73 12.74 3098.61 FTSE EDHEC-Risk Efficient Developed Europe 589 307.18 0.9 3.6 7.6 486.72
7.7 3.1 Software & Computer Services 104 503.34 0.0 0.0 11.7 595.07 11.8 0.8 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (3) 3063.18 -0.08 2722.08 3065.49 3036.96 1786.60 1.58 1.57 40.43 0.00 3673.69 Oil & Gas 146 371.84 1.3 4.5 12.1 636.40
12.8 3.9 Technology Hardware & Equipment 101 204.53 0.0 0.0 11.7 269.95 12.0 2.3 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 7 106.66 -1.1 -1.1 12.9 147.30 12.9 1.7 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Real Estate Investment & Services 115 346.74 -0.7 -0.7 8.8 601.12 8.8 3.0 For all queries e-mail ft.reader.enquiries@morningstar.com
FTSE 100 7197.75 7201.68 7214.67 7223.10 7222.61 7239.50 7248.75 7245.61 7242.52 7261.61 7185.39 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
FTSE 250 18914.74 18886.89 18902.89 18919.14 18943.93 19003.66 19009.72 19013.43 19010.20 19030.25 18865.82 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 5454.31 5441.62 5439.72 5435.98 5436.21 5439.15 5442.29 5441.18 5438.85 5454.46 5434.04
FTSE All-Share 3935.48 3935.99 3942.19 3946.34 3946.93 3956.39 3960.76 3959.46 3957.93 3966.16 3928.53 WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
Time of FTSE 100 Day's high:15:38:30 Day's Low08:14:45 FTSE 100 2010/11 High: 7236.68(15/02/2019) Low: 6692.66(03/01/2019) www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Time of FTSE All-Share Day's high:15:28:00 Day's Low08:15:00 FTSE 100 2010/11 High: 3954.56(15/02/2019) Low: 3657.52(03/01/2019) Group companies and is used by FTSE International Limited under licence.
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing adept4 Pre 10.185 10.301 3.976L 0.831L 1.680L 0.260L 0.00000 0.00000 - 0.000 0.000 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- BB Healthcare Trust Pre - 74.137 - 26.680 - 2.00000 - Mar 28 5.750 - 01/31 1.00 OBOR Starcrest Education The Belt & Road Ltd 22.50 0.00 24.50 23.00 485.1
There are currently no rights offers by any companies listed on the LSE. Brunner Investment Trust (The) Pre 0.476 58.154 0.530L 134.850 0.00000 6.00000 - 4.050 9.500 01/21 1.00 DEV Dev Clever Holdings PLC 13.75 -0.25 14.45 2.25 5132.9
City of London Investment Trust (The) Int 155.480L 90.282 43.590L 26.240 4.55000 4.30000 Feb 28 9.100 8.600
Georgia Healthcare Group Pre 846.306 745.711 53.855 46.326 0.270 0.230 0.00000 0.00000 - 0.000 0.000
Millennium & Copthorne Hotels Pre 997.000 1008.000 106.000 147.000 13.200 38.200 0.00000 4.42000 - 2.080 6.500
REACT Group Pre 3.295 2.645 1.951L 0.393L 0.670L 0.160L 0.00000 0.00000 - 0.000 0.000
Segro Pre 297.700 272.900 1099.100 976.300 105.400 98.500 0.00000 11.35000 - 5.550 16.600
Strategic Equity Capital Int 17.435L 11.979 26.370L 17.500 0.00000 0.00000 - 1.000 0.780
The Royal Bank of Scotland Group Pre 13402.000 13140.000 3359.000 2239.000 13.400 6.300 0.00000 0.00000 - 2.000 0.000

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
 РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
Monday 18 February 2019 ★ FINANCIAL TIMES 19

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m Stock Price+/-Week High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 30.47 0.92 37.81 26.80 6.47 5.88 221760.66 Lockheed 307.23 5.73 363.00 241.18 2.69 17.31 86811.69
ANZ 26.81 -0.05 30.39 22.98 5.98 11.39 54532.6 Nokia 5.57 0.18 5.74 4.34 3.47 -27.40 35346.2 AstellasPh 1678 17.00 2056 1356 2.24 15.04 30049.7 AtlasCpcoB 233.75 10.35 335.45 187.68 4.58 15.05 9818.48 AutomData 149.67 2.86 153.51 109.14 1.89 40.76 65200.69 Lowes 104.24 7.07 117.70 81.16 1.72 23.04 83700.24
BHPBilltn 36.47 0.60 36.74 28.13 3.60 21.41 76488.65 SampoA 42.40 0.31 47.32 37.61 6.23 13.96 26464.87 Bridgestne 4195 23.00 4987 3906 3.66 10.66 28896.43 Ericsson 86.68 5.42 87.60 50.82 1.19 -13.12 28666.87 Avago Tech 281.93 7.87 284.09 197.46 2.50 9.85 114821.89 Lyondell 87.64 3.06 119.39 77.52 4.38 5.94 33623.76
CmwBkAu 70.81 -3.25 77.66 65.23 6.07 14.28 89243.6 France (€) Canon 3190 5.00 4178 2876.5 4.66 15.24 38484.97 H&M 136.38 -1.12 173.00 117.10 7.19 17.15 21443.1 BakerHu 57.68 - 68.59 43.09 - -346.53 24541.87 Marathon Ptl 65.15 2.43 88.45 54.29 2.69 8.38 45009.11
CSL 185.00 -7.60 232.69 152.50 1.23 32.52 59660.43 Airbus Grpe 110.98 11.04 111.76 77.50 1.37 28.98 97048.17 CntJpRwy 23895 270.00 24390 19105 0.60 10.67 44524.17 Investor 412.00 10.10 419.90 350.70 2.00 7.33 20200.16 BankAm 29.11 0.82 33.05 22.66 1.73 14.00 285691.27 Marsh&M 91.16 1.24 92.15 74.30 1.26 30.95 45918.03
NatAusBk 24.22 -0.71 30.64 22.52 8.19 11.64 47892.89 AirLiquide 106.85 2.45 115.25 97.26 2.54 21.17 51683.38 Denso 4748 99.00 6471 4465 2.89 13.95 33839.83 Nordea Bk 84.90 1.73 99.34 72.97 8.51 10.11 37011.94 Baxter 73.43 1.93 78.38 61.05 0.94 33.73 39075.11 MasterCard 222.11 5.53 225.35 167.94 0.45 39.32 225272.32
Telstra 3.18 -0.01 3.54 2.60 4.71 12.21 26926.55 AXA 20.75 0.64 26.17 18.43 6.13 8.39 56661.67 EastJpRwy 10255 95.00 11145 9063 1.44 13.16 35417.54 SEB 98.16 3.14 100.50 79.16 6.03 9.54 22928.86 BB & T 50.70 0.46 56.31 40.68 2.89 13.87 39070.42 McDonald's 179.97 5.22 190.88 146.84 2.21 27.64 138740.72
Wesfarmers 33.30 -0.13 37.87 28.92 6.76 14.35 26881.07 BNP Parib 42.11 2.26 66.04 38.14 7.29 7.11 59278.93 Fanuc 18840 45.00 28190 15570 2.97 20.60 34771.18 SvnskaHn 102.65 6.05 117.30 92.84 5.51 11.45 21092.67 BectonDick 248.34 6.13 264.68 208.62 1.23 72.19 66819.2 McKesson 135.56 7.07 160.87 106.11 1.09-104.17 26003.83
Westpc 26.24 -0.64 31.40 23.30 7.17 11.39 64406.18 ChristianDior 382.50 12.20 385.30 301.00 1.32 26.87 77768.16 FastRetail 48720 700.00 61930 38900 0.89 33.92 46745.14 Swedbank 209.60 3.10 221.70 177.15 6.38 10.70 25540.19 BerkshHat 308139 7368 335900 279410 - 8.30 225912.72 Medtronic 92.27 3.26 100.15 76.41 2.09 54.95 123922.8
Woolworths 30.03 -0.07 31.48 26.16 3.13 24.14 28166.24 Cred Agr 10.20 0.65 14.30 9.10 6.28 8.81 32919.05 Fuji Hvy Ind 2793.5 96.00 3843 2208.5 5.24 11.35 19435.51 Telia Co 39.73 0.76 44.02 37.21 5.57 14.73 18518.21 Biogen 332.87 17.75 388.67 249.17 - 15.29 65478.45 Merck 79.81 2.29 80.19 52.83 2.37 64.81 207536.05
Belgium (€) Danone 65.69 1.28 69.20 60.20 2.92 15.47 50687.38 Hitachi 3385 -118.00 4368.5 762.20 1.44 15.51 29598.43 Volvo 135.25 6.85 163.45 112.85 3.23 9.71 24026.38 BkNYMeln 52.99 1.16 58.67 43.67 1.76 13.09 52395.32 Metlife 44.86 2.15 48.92 37.76 3.60 9.07 44269.56
AnBshInBv 68.45 1.78 95.08 56.39 5.52 - 130547.21 EDF 13.99 -0.71 15.73 10.08 3.32 17.78 47434.89 HondaMtr 2972.5 -29.50 3992 2733 3.76 7.05 48704 BlackRock 431.95 20.19 578.80 360.79 2.60 12.57 68123.82 Microsoft 108.22 2.55 116.18 87.08 1.60 24.89 830286.94
Switzerland (SFr)
KBC Grp 61.64 3.28 77.64 54.66 4.94 11.10 28893.06 Engie SA 14.12 0.38 14.82 11.31 5.00 29.78 38731.07 JapanTob 2780 53.50 3244 2481 5.07 13.40 50291.72 Boeing 417.97 13.06 418.05 292.47 1.65 23.21 236146.83 Mnstr Bvrg 58.72 0.83 66.43 47.61 - 35.48 32470.02
ABB 19.78 0.76 24.60 18.03 4.10 18.98 42579.2
Esslr Intl 128.75 5.80 129.55 100.60 1.18 38.25 32686.21 KDDI 2673.5 15.00 3187 2331.5 3.61 10.72 61230.27 BrisMySq 51.67 1.45 70.05 44.30 3.05 58.93 84335.71 MondelezInt 48.16 1.26 48.21 37.42 2.01 20.94 69551.2
Brazil (R$) CredSuisse 11.75 0.12 17.75 10.36 2.16 -55.09 29825.85
Hermes Intl 540.80 12.80 614.60 435.30 0.76 42.48 64305.76 Keyence 62000 -260.00 69040 50780 0.25 32.44 68196.27 CapOne 81.57 3.74 101.67 69.90 1.93 11.17 38636.16 Monsanto 127.95 - 127.97 114.19 1.64 23.62 56462.29
Ambev 18.49 0.27 24.56 14.54 2.68 30.09 78184.67 Nestle 89.10 2.86 89.90 72.92 2.60 33.94 271029.65
LOreal 221.80 3.00 226.00 170.50 1.61 30.61 140001.33 MitsbCp 3143 -13.00 3638 2776 4.04 8.39 45204.76 CardinalHlth 55.48 2.81 73.23 42.17 3.445501.07 16533.96 MorganStly 41.99 1.18 59.38 36.74 2.46 10.17 72229.3
Bradesco 40.79 0.54 41.61 22.33 0.89 15.79 36860.14 Novartis 90.08 1.56 92.80 71.84 3.36 16.48 228174.48
LVMH 294.20 10.65 313.70 237.55 1.71 24.47 167352.67 MitsubEst 1850.5 -57.50 2155.5 1657 1.48 19.12 23283.59 Carnival 57.25 0.62 70.56 45.64 3.43 12.81 30162.21 MylanNV 31.84 1.37 44.18 26.03 - 31.08 16417.71
Cielo♦ 10.96 0.36 25.30 8.47 8.51 8.15 8008.36 Richemont 72.26 5.14 99.02 60.44 2.66 14.18 37459.38
Orange 13.43 0.16 15.22 13.15 4.88 19.57 40223.54 MitsubishiEle 1417 26.50 1877.5 1146 2.87 12.13 27521 Caterpillar 136.20 7.60 164.60 112.06 2.43 13.16 80372.53 Netflix 356.87 9.30 423.21 231.23 - 132.00 155808.94
ItauHldFin♦ 32.61 0.17 91.62 28.56 1.12 14.65 43486.64 Roche 272.55 4.20 274.50 206.35 3.14 21.66 190161.84
PernodRic 150.55 0.00 151.90 128.35 1.60 26.88 45008.25 MitsuiFud 2646 -5.50 3082 2346 1.61 13.81 23728.55 CBS 50.64 1.08 59.59 41.38 1.40 13.60 17050.57 NextEraE 184.04 1.03 185.11 149.84 2.31 10.63 87961.05
Petrobras 31.05 1.78 31.80 16.90 0.16 34.33 62151.41 Swiss Re 97.12 1.32 98.80 84.20 5.10 194.34 32659.74
Renault 59.63 3.02 100.80 51.98 6.01 3.46 19862.05 MitUFJFin 571.80 -6.30 794.80 514.70 3.73 5.99 70690.94 Celgene 90.69 2.78 97.43 58.59 - 23.36 63575.91 Nike 85.38 3.02 86.04 63.21 0.97 63.75 107474.02
Vale 45.88 2.72 62.42 40.06 5.38 16.48 34920.92 Swisscom 447.50 3.50 518.80 427.00 5.07 14.73 23021.37
Safran 115.15 2.90 122.25 81.56 1.40 23.49 56518.98 Mizuho Fin 173.30 -0.10 205.00 161.10 4.40 7.49 39804.01 CharlesSch 46.36 1.60 60.22 37.83 0.87 21.49 62606.99 NorfolkS 182.87 11.41 186.91 127.79 1.68 19.06 48909.56
Canada (C$) Syngent 453.40 1.40 471.20 402.50 - 206.62 43035.76
Sanofi 75.24 -0.02 80.00 62.88 4.09 23.09 105712.91 Murata Mfg 17265 -125.00 20255 13080 1.59 18.67 35179.88 Charter Comms 349.06 4.90 370.09 250.10 - 66.29 78662 Northrop 286.98 6.36 360.88 223.63 1.65 15.39 48711.27
BCE 57.33 -0.01 57.70 50.72 5.27 18.57 38775.47 UBS 13.00 0.36 18.31 11.67 5.02 29.49 49763.67
Sant Gbn 32.67 1.79 46.98 28.18 4.01 8.83 20113.23 NipponTT 4589 -47.00 5448 4050 3.34 10.38 80958.44 Chevron Corp 119.35 1.77 131.08 100.22 3.67 16.30 228050.92 NXP 93.04 5.53 125.93 67.62 0.26 12.01 32192.11
BkMontrl♦ 98.13 1.18 109.00 86.25 3.92 11.81 47172.16 Zurich Fin 322.10 6.10 322.50 282.40 5.95 12.77 48412.73
Schneider 68.16 6.06 78.56 57.58 0.28 16.84 44464.13 Nissan Mt 935.00 6.90 1157.5 835.50 5.98 7.41 35695.98 Chubb 133.21 2.86 148.58 119.54 2.13 12.34 61383.88 Occid Pet 67.19 2.23 87.67 56.83 4.53 13.40 50730.19
BkNvaS 74.77 0.29 82.70 66.36 4.46 10.78 68942.49 Nomura 431.60 -2.90 681.20 393.00 3.30 -18.25 13638.66 Taiwan (NT$) Cigna 197.87 16.50 226.61 163.02 0.02 17.87 48188.13 Oracle 51.72 0.69 53.48 42.40 1.48 48.46 185618.89
SFR Group 34.50 0.00 34.56 21.87 - -23.02 17905.81
Brookfield 58.29 0.31 59.15 48.66 1.32 17.47 43594.8 Nppn Stl 2031.5 -6.00 2663 1794 4.00 6.52 17462.6 Chunghwa Telecom 106.50 -0.50 117.50 96.30 4.48 23.17 26791.43 Cisco 49.43 2.24 49.68 40.19 2.60 158.58 222235.39 Pepsico 115.91 2.90 122.00 95.94 2.95 33.81 163614.85
SocGen 24.55 0.53 47.49 23.56 9.11 6.79 22335.99
CanadPcR 270.72 4.93 289.90 219.87 0.91 16.19 28659.06 NTTDCMo 2574 19.50 3095 2321 4.15 13.88 88061.49 Formosa PetChem 112.00 4.50 151.00 100.50 5.60 12.26 34598.29 Citigroup 64.27 2.26 78.42 48.42 2.16 -33.45 161742.23 Perrigo 48.95 1.32 90.72 36.28 1.47 57.11 6650.18
Total 49.70 1.27 56.82 44.84 5.23 13.50 147873.42
CanImp 113.05 2.10 125.21 99.51 4.78 9.54 37722.07 Panasonic 1025 -6.50 1706.5 917.70 3.47 11.23 22743.24 HonHaiPrc 70.30 0.30 96.50 67.00 3.54 7.08 31603.88 CME Grp 175.40 -2.80 197.08 153.90 1.55 13.44 59781.21 Pfizer 42.40 0.17 46.47 34.32 3.11 10.90 245092.12
UnibailR 190.00 0.35 236.45 177.35 5.43 8.02 22215.04
CanNatRs 36.87 2.73 49.08 30.11 3.51 11.90 33370.83 Seven & I 4875 107.00 5203 4275 1.86 23.40 39088.28 MediaTek 252.00 9.00 374.50 199.50 3.95 14.69 13005.8 Coca-Cola 45.24 -4.26 50.84 41.45 3.35 62.90 192564.69 Phillips66 95.99 2.47 123.97 78.44 3.08 7.37 44263.42
Vinci 80.52 4.32 87.38 70.18 3.19 14.78 54255.65
CanNatRy 111.38 1.74 118.62 90.84 1.60 19.35 60893.64 ShnEtsuCh 9405 161.00 11640 7982 1.89 11.78 36376.83 TaiwanSem 227.00 6.00 268.00 206.50 3.51 16.79 190881.05 Cognizant 73.56 0.40 85.10 59.47 1.00 30.35 42593.3 PhilMorris 83.46 3.48 109.90 64.67 5.43 16.29 129745.61
Vivendi 24.01 1.81 24.45 20.26 1.89 25.31 35329.98
Enbridge 47.40 -0.52 49.70 37.36 5.60 50.35 72178.42 Softbank 10330 368.00 11500 6803 0.43 7.29 102843.13 Thailand (THB) ColgtPlm 66.48 0.79 72.61 57.41 2.43 27.88 57659.43 PNCFin 124.15 2.91 163.59 108.45 2.54 10.41 57285.86
GtWesLif 29.47 0.20 34.64 26.83 5.18 10.04 21919.19 Germany (€)
Sony 5046 333.00 6973 4704 0.60 7.94 57998.19 PTT Explor 48.25 -0.75 59.50 44.25 2.37 10.77 44062.42 Comcast 37.77 0.17 40.42 30.43 2.03 14.80 170588.89 PPG Inds 109.11 4.25 118.62 94.37 1.65 22.51 26173.83
ImpOil 36.22 0.73 44.91 33.43 1.96 21.95 21343.75 Allianz 190.14 7.42 201.40 170.12 4.24 12.11 90904.42
SumitomoF 3937 9.00 4853 3483 4.52 7.15 49834.41 United Arab Emirates (Dhs) ConocPhil 70.18 3.92 79.96 52.78 1.57 14.25 80794.16 Praxair 164.50 -0.44 169.75 140.00 1.97 33.57 47306.22
Manulife 21.47 0.65 25.20 18.33 4.16 9.39 31865.54 BASF 66.32 3.76 90.02 57.35 4.58 9.91 68610.2
Takeda Ph 4479 22.00 6221 3498 4.09 31.54 63404.25 Emirtestele 16.84 -0.16 17.95 15.80 4.66 17.18 39871.31 Corning 34.51 1.12 36.56 26.11 2.10 30.27 27151.12 Priceline 1905.64 20.64 2067.99 1612.41 - 30.70 92937.2
Nutrien 70.76 0.92 76.17 55.27 2.68-135.21 32483.7 Bayer 68.17 1.97 103.74 58.34 4.11 11.07 71604.68
TokioMarine 5381 40.00 5737 4689 3.21 11.10 35029.68 United Kingdom (p) Costco 216.47 8.72 245.16 180.83 1.03 29.17 95352.97 ProctGmbl 98.48 0.77 99.70 70.73 2.91 23.75 246355.57
RylBkC♦ 101.41 0.50 105.07 90.10 3.78 11.93 109625.28 BMW 70.77 1.24 93.87 68.11 5.74 5.67 47986.3
Toyota 6605 30.00 7686 6045 3.39 10.02 194944.59 CrownCstl 120.13 1.76 120.20 98.85 3.44 115.03 49835.98 Prudntl 94.15 3.16 113.03 75.61 3.61 5.94 38883.95
Suncor En 44.88 2.07 55.47 35.53 3.16 14.68 53565.16 Continental 138.65 10.40 232.20 118.30 3.30 9.27 31234.74 AscBrFd 2266 -34.00 2846 2011 1.82 17.77 23047.61
Mexico (Mex$) CSX 72.54 3.79 76.24 53.13 1.22 18.73 59350.78 PublStor 207.74 -2.83 234.90 185.77 3.79 28.42 36222.48
ThmReut 70.13 -0.51 71.54 51.43 2.84 26.45 26483.22 Daimler 50.61 2.60 72.70 44.51 7.33 5.87 60985.87 AstraZen 6241 545.00 6432 4699 3.38 42.68 101545.65
AmerMvl 14.48 -0.70 18.20 12.32 3.31 16.50 33566.48 CVS 69.53 4.52 82.15 60.14 2.83 23.29 70837.1 Qualcomm 51.98 1.69 76.50 48.56 4.72 32.21 62911.69
TntoDom 75.36 0.74 80.05 65.56 3.52 12.33 104182.3 Deut Bank 7.72 0.52 13.64 6.68 1.45 -7.17 17976.19 Aviva 423.30 5.40 554.60 361.80 6.47 15.28 21825.45
FEMSA UBD 178.09 1.11 188.00 158.17 1.44 17.36 19878.06 Danaher 111.24 1.99 111.79 94.59 0.55 29.03 77968.42 Raytheon 184.61 8.69 229.75 144.27 1.90 18.03 52104.14
TrnCan 56.74 1.53 59.51 47.90 4.77 14.76 39398.48 Deut Tlkm 14.26 0.12 15.60 12.72 4.63 16.71 76477.64 Barclays 159.50 3.56 220.10 145.00 2.82 49.09 34966.72
WalMrtMex 52.64 3.24 57.60 43.58 1.36 25.33 47472.14 Deere 158.99 -3.76 175.26 128.32 1.63 21.84 50857.82 Regen Pharm 423.97 17.11 431.32 281.89 - 19.74 45519.89
ValeantPh 30.80 0.74 36.02 14.01 - -4.99 8158.48 DeutsPost 26.75 1.49 38.15 23.36 4.37 15.96 37020.93 BP 543.50 -0.50 603.20 456.45 5.67 16.45 139168.4
Delphi 18.70 1.81 53.78 13.18 2.69 6.02 1654.8 S&P Global 198.32 4.73 217.31 156.68 1.02 25.43 49302.35
E.ON 9.64 0.19 9.95 7.93 3.16 6.59 23899.67 Netherlands (€) BrAmTob 2859 170.00 4509.5 2336.5 6.92 1.57 68483.28
China (HK$) Delta 51.08 0.61 61.32 45.08 2.44 10.19 35021.4 Salesforce 159.05 2.38 163.57 110.05 - 170.09 121673.25
Fresenius Med 68.50 2.88 91.74 55.44 1.57 10.63 23754.46 Altice 1.81 0.02 3.63 1.22 - 6.24 3246.91 BSkyB 1727.5 0.50 1740 893.50 0.76 36.60 38843.72
AgricBkCh 3.64 -0.02 4.76 3.33 5.56 5.40 14257.9 Devon Energy 28.42 3.50 46.54 20.37 0.97 -70.36 13306.24 Schlmbrg 44.95 2.17 75.43 34.99 4.49 29.12 62164.25
Fresenius SE 47.26 1.87 71.36 38.28 1.61 12.85 24004.02 ASML Hld 163.08 5.40 189.50 130.12 0.88 26.20 78187.62 BT 231.20 3.25 268.60 201.25 6.66 10.19 29471.52
Bk China 3.52 -0.09 4.54 3.20 5.70 5.31 37507.94 DiscFinServ 71.29 3.28 81.34 54.36 2.00 10.69 23950.92 Sempra Energy 115.26 -2.66 127.22 100.49 3.00 -66.47 31542.08
HenkelKgaA 80.85 1.60 104.80 77.75 2.22 13.89 23658.51 Heineken 87.62 7.20 93.54 74.28 1.69 24.61 56846.38 Compass♦ 1743.5 -5.50 1776.5 1427.5 1.98 24.56 36838.25
BkofComm 6.51 -0.10 6.70 5.33 5.00 3.67 29044.09 Disney 112.59 1.08 120.20 97.68 1.54 15.27 167846.56 Shrwin-Will 439.18 18.17 479.64 355.28 0.77 22.26 41118.81
Linde 149.80 8.90 191.25 130.75 1.90 34.74 94175.04 ING 11.04 0.31 14.98 9.12 6.12 8.36 48402.87 Diageo 3064.5 82.50 3064.5 2345.5 2.13 25.56 99114.95
BOE Tech 0.97 0.00 1.78 0.83 - 22.64 24.59 DominRes 73.26 0.21 77.19 61.53 4.40 15.40 48093.24 SimonProp 183.36 -0.74 191.49 145.78 4.16 25.15 56712.59
MuenchRkv 204.20 6.45 204.20 174.85 4.28 11.69 34394.09 Unilever 48.94 0.55 50.16 42.13 3.02 22.36 94512.62 GlaxoSmh 1581 16.20 1648.8 1269.8 5.06 42.27 99891.19
Ch Coms Cons 8.08 0.03 9.18 6.96 3.54 5.62 4558.6 DowDupont 54.24 2.53 74.12 48.89 2.83 32.59 122298.29 SouthCpr 32.50 -0.04 58.09 29.01 3.79 26.39 25123.95
SAP 94.30 2.64 108.52 82.05 1.51 26.15 130485.85 Norway (Kr) Glencore 303.65 11.60 409.80 268.35 3.40 9.55 56273.08
Ch Evrbrght 3.70 -0.11 4.31 3.14 5.64 5.88 5977.77 DukeEner 87.51 -2.79 91.35 71.96 4.05 21.61 62383.92 Starbucks 70.71 0.96 71.54 47.37 1.88 30.74 87934.96
Siemens 94.62 3.10 121.70 90.85 3.97 13.58 90589.31 DNB 162.80 8.10 174.20 135.50 4.57 10.91 30164.97 HSBC 665.90 24.00 764.30 596.40 5.82 16.27 171532.29
Ch Rail Cons 10.84 0.12 11.50 7.53 1.98 7.91 2868.01 Eaton 78.73 2.90 89.46 64.46 3.23 16.34 34121.58 StateSt 70.66 1.70 110.33 57.87 2.41 11.44 26817.99
Volkswgn 147.50 3.60 177.00 129.60 2.69 5.55 49025.42 Equinor 200.30 7.30 234.60 174.45 3.83 11.57 77232.15 Imperial Brands 2651.5 114.00 3009 2280.5 6.63 18.52 32489.25
Ch Rail Gp 7.43 0.05 8.01 5.25 1.80 8.49 3983.51 eBay 36.58 1.32 44.36 26.01 - 14.22 33466.33 Stryker 186.83 4.17 187.69 144.75 1.04 19.83 69624.93
Hong Kong (HK$) Telenor 162.70 4.05 183.05 148.10 4.96 16.11 27649.05 LlydsBkg 58.44 1.56 70.39 49.52 5.34 10.44 54111.03
ChConstBk 6.80 -0.15 8.72 6.02 4.95 5.93 208324.01 Ecolab 163.48 4.31 164.19 127.23 0.99 30.39 47224.97 Sychrony Fin 31.75 1.81 38.07 21.78 2.05 10.23 22819.73
AIA 73.20 0.75 75.15 58.20 1.17 19.27 112651.38 Natl Grid 842.20 0.00 895.10 735.50 5.45 8.57 36318.7
China Vanke 30.05 -0.70 37.40 21.50 3.45 9.54 5035.23 Qatar (QR) Emerson 68.31 1.57 79.70 55.39 2.87 18.86 41984.68 T-MobileUS 72.05 3.67 72.07 55.09 - 21.26 61258.46
BOC Hold 30.70 0.55 41.50 27.55 4.13 10.72 41360.93 Prudential 1532.5 54.50 1962 1325 3.07 17.53 50940.59
ChinaCitic 4.91 -0.15 6.17 4.57 6.01 4.97 9311.32 QatarNtBk 177.10 -13.89 200.50 116.66 3.40 12.26 44926.43 EOG Res 100.25 7.75 133.53 82.04 0.69 11.90 58136.86 Target 72.84 1.96 90.39 60.15 3.45 12.07 38010.36
Ch OSLnd&Inv 28.95 -0.30 29.90 22.35 2.69 7.71 40417.76 RBS 247.50 8.40 297.40 200.10 0.81 39.89 38048.98
ChinaLife 18.86 -0.48 24.15 15.44 2.53 12.88 17883.23 Russia (RUB) EquityResTP 73.21 -0.23 73.85 55.50 2.86 41.28 26973.54 TE Connect 82.14 1.73 106.00 69.84 2.11 9.56 27833.5
ChngKng 64.25 -0.05 70.65 50.30 2.58 6.12 30238.69 ReckittB 6017 99.00 7174 5255 2.73 12.33 54437.55
ChinaMBank 33.10 -0.85 36.15 26.40 2.91 9.47 19363.73 Gzprm neft 159.04 -0.76 176.95 128.19 5.07 3.05 56512.94 Exelon 48.26 0.54 48.26 36.50 2.88 23.11 46799.94 Tesla Mtrs 307.88 2.08 387.46 244.59 - -29.51 52873.09
Citic Ltd 11.74 0.06 13.28 10.22 2.99 8.32 43519.03 RELX 1720 -1.00 1750.5 1423.5 2.29 20.95 43401.16
ChinaMob 83.30 -0.10 84.00 67.85 3.68 12.61 217341.31 Lukoil 5426 40.00 5488.5 3532.5 3.97 6.65 61082.97 ExpScripts 92.33 - 101.73 66.93 - 11.10 52061.19 TexasInstr 107.57 3.02 118.48 87.70 2.27 23.38 103325.64
Citic Secs 16.92 -0.16 20.25 11.62 2.72 16.92 4912.23 RioTinto 4398 133.00 4541 3460.5 4.95 9.11 75783.36
ChinaPcIns 28.10 0.50 41.65 24.20 3.31 13.82 9937.54 MmcNrlskNckl 13750 18.00 13900 8824 1.82 11.59 32659.77 ExxonMb 77.71 3.73 87.36 64.65 4.03 14.50 329009.16 TheTrvelers 128.74 2.95 143.41 111.08 2.37 13.75 34101.01
CK Hutchison 79.70 0.70 100.80 72.80 3.48 8.49 39163.87 RollsRoyce 971.40 69.80 1104.5 750.00 1.20 8.61 23210.98
ChMinsheng 5.80 -0.15 7.32 5.25 1.49 4.39 6149.36 Novatek 1087.4 -40.20 1215 656.30 1.38 19.77 49558.01 Facebook 162.50 -4.83 218.62 123.02 - 21.28 387649.27 ThrmoFshr 252.49 8.98 253.91 199.85 0.26 40.42 101646.51
CNOOC 13.28 0.08 15.78 10.72 3.59 15.16 75554.21 RylDShlA 2424 10.00 2755 2168.5 5.96 12.30 143165.85
ChMrchSecs RMB 15.14 0.35 17.87 11.13 2.22 26.43 10949.03 Rosneft 403.50 -8.10 522.80 281.65 2.69 9.07 64187.97 Fedex 179.30 2.06 266.67 150.94 1.66 9.70 46805.12 TimeWrnr 98.77 - 103.89 85.88 1.54 15.09 77269.69
HangSeng 182.70 4.10 216.80 166.00 3.62 15.95 44509.61 Shire# 4690 130.00 4780 2940.5 0.58 11.63 54382.71
Chna Utd Coms RMB 5.73 0.37 6.57 4.63 0.34 82.84 17912.18 Sberbank 208.00 -2.43 285.00 166.00 5.78 5.34 67395.96 FordMtr 8.54 0.15 12.15 7.41 6.92 5.59 33433.03 TJX Cos♦ 50.23 1.29 56.37 37.91 1.41 20.47 61940.89
HK Exc&Clr 251.00 7.20 17867.34 195.60 2.09 35.67 40000.59 StandCh 637.90 19.90 864.20 514.20 1.31 24.55 27018.58
ChShenEgy 19.10 -0.60 24.10 16.04 5.60 7.57 8271.71 Surgutneftegas 26.83 -0.02 30.28 25.92 2.43 1.72 14387.57 Franklin 32.45 2.43 40.56 27.34 2.95 10.76 16533.61 UnionPac 170.24 8.52 171.35 125.31 1.81 21.34 123062.72
MTR 43.80 0.40 7449.99 37.50 2.49 16.42 34267.17 Tesco 224.20 0.00 266.80 187.05 1.34 19.81 23584.06
ChShpbldng RMB 4.54 0.17 5.73 3.81 0.24 85.02 12294.05 GenDyn 175.24 3.12 230.00 143.87 2.09 15.48 50510.46 UPS B 110.87 2.77 125.09 89.89 3.16 18.01 77078.14
SandsCh 36.00 -1.30 48.60 29.85 5.39 20.01 37068.88 Saudi Arabia (SR) Vodafone 141.20 2.52 214.60 133.48 9.56 -28.51 48388.15
ChStConEng RMB 6.03 -0.10 6.71 4.91 2.47 8.07 36586.03 GenElectric 10.09 0.28 15.59 6.66 4.69 -2.94 87763.98 USBancorp 51.31 0.73 56.10 43.14 2.44 13.02 82921.73
SHK Props 132.40 2.00 133.90 99.50 3.09 7.89 48879.89 AlRajhiBnk 101.40 -0.60 104.00 72.10 4.45 15.94 43935.91 WPP 846.20 43.40 1474 791.00 7.09 5.67 13764.63
ChUncHK 9.17 0.13 11.44 8.02 0.64 43.29 35754.21 GenMills 45.04 1.09 56.91 36.42 4.38 13.04 26877.57 UtdHlthcre 271.13 9.23 287.94 212.50 1.28 22.05 260159.68
Tencent 333.80 -13.80 475.60 251.40 0.24 33.31 404952.13 Natnlcombnk 54.60 0.70 54.80 38.35 2.87 16.42 43675.92 United States of America ($)
CNNC Intl RMB 5.54 0.11 7.29 5.19 1.96 20.49 12717.27 GenMotors 39.09 0.39 45.00 30.56 3.92 6.94 55096.53 UtdTech 127.76 5.27 144.15 100.48 2.24 19.48 110097.03
SaudiBasic 124.00 -0.60 131.40 104.20 3.48 17.26 99190.74 21stC Fox A 50.40 0.72 50.43 35.40 0.72 6.71 53343.79
CSR 8.01 0.15 8.18 5.81 2.11 18.28 4461.5 India (Rs) GileadSci 67.59 0.12 82.72 60.32 3.14 41.34 87435.75 ValeroEngy 84.40 0.26 126.98 68.81 3.46 8.42 35811.62
SaudiTelec 102.00 2.40 103.80 73.90 3.84 20.09 54394.92 3M 208.86 9.04 244.86 176.87 2.63 23.29 120261.59
Daqin RMB 8.46 -0.24 9.52 7.51 5.39 9.08 18548.7 Bhartiartl 304.60 -8.65 436.60 276.85 2.65 304.91 17084.45 GoldmSchs 198.50 6.83 275.31 151.70 1.54 14.28 73836.79 Verizon 55.16 1.21 61.58 46.09 4.24 7.13 227921.95
Gree Elec Apl 0.02 0.00 0.07 0.02 - -0.29 33.00 HDFC Bk 2100.65 -22.00 2220 1828.5 0.63 29.32 80184.85 Singapore (S$) AbbottLb 75.25 1.92 75.40 56.81 1.45 169.73 132164.06 Halliburton 31.85 2.15 54.91 24.70 2.28 16.71 27790.49 VertexPharm 188.07 6.73 195.81 144.07 - 23.05 48081.39
GuosenSec RMB 8.90 0.36 11.41 6.71 1.64 26.19 10762.91 Hind Unilevr 1772.8 -44.50 1869.5 1281.1 1.02 73.59 53844.39 DBS 24.79 0.46 31.28 22.65 4.74 11.25 46627.31 Abbvie 80.85 1.18 122.00 75.77 3.98 17.03 121615.89 HCA Hold 144.26 4.73 147.42 93.03 0.72 16.34 49648.59 VF Cp 86.90 1.12 97.00 67.18 1.88 51.12 34378.11
HaitongSecs 9.15 0.05 11.64 6.31 2.91 15.66 3975.42 HsngDevFin 1874.9 -69.75 2052.95 1644.5 0.99 18.95 45247.64 JardnMt US$ 70.51 3.69 70.89 10.99 2.19 16.85 51946.25 Accenture 159.23 3.64 175.64 132.63 1.76 24.29 105974.1 Hew-Pack 23.28 0.36 27.08 19.22 2.41 7.10 36165.35 Viacom 29.15 -0.04 34.58 23.31 2.77 7.92 10303.02
Hngzh HikVDT RMB 31.93 0.40 44.59 22.32 1.52 28.42 38023.38 ICICI Bk 342.15 -12.95 383.55 256.50 0.85 54.09 30927.33 JardnStr US$ 38.63 0.98 40.78 31.55 0.82 13.69 42752.43 Adobe 259.45 2.45 277.61 197.13 - 49.55 126540.49 HiltonWwde 81.75 7.84 86.44 65.64 0.74 32.42 23940.27 Visa Inc 144.91 4.53 151.56 116.03 0.61 30.89 253618.1
Hunng Pwr 4.98 0.07 6.18 4.04 2.27 22.74 2982.82 Infosys 741.95 -18.95 772.25 551.00 2.36 18.54 45479.46 OCBC 11.52 0.03 14.04 10.36 3.32 10.60 35531.82 AEP 79.27 -0.75 81.05 62.71 3.08 20.27 39088.74 HomeDep 192.39 7.85 215.43 158.09 2.08 20.89 217309.84 Walgreen 73.43 3.31 86.31 59.07 2.30 13.45 69277.15
IM Baotou Stl RMB 1.54 0.04 2.39 1.44 0.32 24.45 7194.53 ITC 280.10 4.60 322.95 252.50 1.70 30.42 48141.87 SingTel 2.99 -0.06 3.58 2.83 5.88 15.84 35945.05 Aetna 212.70 - 213.36 166.89 0.92 19.50 69637.98 Honywell 153.32 4.71 166.76 123.48 2.01 16.93 111783.45 WalMartSto 99.99 4.41 106.21 81.78 2.08 57.15 290496.95
In&CmBkCh 5.82 -0.15 7.23 5.10 4.73 6.32 64369.07 L&T 1243.1 -18.65 1459.7 1182.5 2.25 23.66 24462.9 UOB 25.68 0.40 30.37 23.80 3.62 11.35 31737.79 Aflac 49.28 1.10 49.38 41.45 2.01 7.90 37515.85 HumanaInc 310.30 11.41 355.88 261.35 0.60 28.76 42569.09 WellsFargo 49.22 1.57 61.27 43.02 3.08 12.87 231690.56
IndstrlBk RMB 16.11 -0.28 18.42 13.73 3.92 5.84 45265.69 OilNatGas 135.00 -9.15 194.35 127.60 4.49 7.83 24308.84 South Africa (R) AirProd 174.08 8.18 174.34 148.44 2.55 23.13 38233.39 IBM 138.03 4.32 162.11 105.94 4.38 22.38 125440.81 Williams Cos 27.27 0.39 32.22 20.36 4.77 11.12 33011.48
Kweichow RMB 724.78 32.11 803.50 509.02 1.47 29.46 134273.33 RelianceIn 1244.45 -33.25 1329 880.00 0.50 18.52 110679.17 Firstrand 62.75 -3.25 77.25 55.00 4.26 13.20 24887 Alexion 129.42 9.28 140.77 92.56 - 366.56 28921.41 IllinoisTool 144.21 8.49 171.83 117.75 2.28 26.33 47849.09 Yum!Brnds 94.12 -0.37 95.45 77.09 1.44 19.54 29393.85
Midea 1.60 -0.07 1.85 1.40 3.04 27.41 43.84 SBI NewA 262.95 -23.05 326.40 232.35 - -33.29 32927.18 MTN Grp 84.40 -0.60 138.00 69.07 8.33 45.68 11244 Allergan 139.07 6.98 197.00 125.84 2.03 18.24 46906.36 Illumina 299.82 15.72 372.61 221.49 - 53.46 44073.54 Venezuela (VEF)
New Ch Life Ins 33.70 1.05 49.95 27.30 1.82 11.62 4440.78 SunPhrmInds 422.90 -8.15 679.30 370.20 0.49 28.68 14237.06 Naspers N 3055.94 65.94 3613.94 2362.66 0.21 6.97 94777.31 Allstate 94.38 1.92 102.73 77.00 1.83 9.45 32508.46 Intcntl Exch 75.50 -0.66 82.65 67.70 1.28 21.82 42921.6 Bco de Vnzla 150.00 -135.00 285.00 0.06 458.49 - 166.05
PetroChina 4.98 -0.07 6.74 4.64 2.10 15.39 13389.15 Tata Cons 2029.7 -31.70 2275.95 1390.78 1.32 24.81 106864.24 Alphabet 1119.63 17.25 1291.44 977.66 - 25.40 335172.47 Intel 51.66 2.82 57.60 42.36 2.34 11.43 232315.02
South Korea (KRW) Bco Provncl 5850-1250.00 9500 4.20 - 4.70 191.48
PingAnIns 76.40 -0.30 94.80 65.95 2.39 11.89 72505.59 Altria 48.74 -0.10 66.53 42.40 5.78 8.82 91584.68 Intuit 233.32 8.49 233.73 162.59 0.71 48.55 60548.54
Indonesia (Rp) HyundMobis 214000-7000.00 271000 165000 1.64 15.41 18455.45 Mrcntl Srvcs 13500-1499.99 19400 4.46 0.00 590.51 249.49
PngAnBnk RMB 10.95 -0.25 13.20 8.45 1.21 8.17 27727.89 Amazon 1607.95 19.73 2050.5 1307 - 79.15 789829.69 John&John 136.38 3.98 148.99 118.62 2.51 234.62 365768.16
Bk Cent Asia 22300 200.00 24700 16800 - - 38879.26 KoreaElePwr 33500 0.00 38300 23850 2.36 -11.25 19052.76
Pwr Cons Corp RMB 5.10 0.05 7.43 4.56 1.76 10.86 8382.04 AmerAir 35.05 -0.95 57.44 28.81 1.12 14.35 16143.38 JohnsonCn 35.10 1.10 40.33 28.30 2.99 13.81 32036.23
Israel (ILS) SK Hynix 73800-2900.00 97700 56700 1.36 3.37 47598.29 Closing prices and highs & lows are in traded currency (with variations for that
SaicMtr RMB 26.23 -0.42 37.66 24.31 6.77 8.43 44499.07 AmerExpr 107.38 2.86 114.55 89.05 1.39 13.46 90560.93 JPMrgnCh 105.55 4.19 119.33 91.11 2.31 13.24 350997.1
TevaPha 64.42 -7.24 94.75 54.40 0.47 -1.65 19202.34 SmsungEl 46050 -150.00 53900 36850 3.25 6.57 243551.25 country indicated by stock), market capitalisation is in USD. Highs & lows are
ShenwanHong 0.11 0.01 0.21 0.09 - 3.39 118.33 AmerIntGrp 42.32 -0.13 61.36 36.16 2.98 -6.69 37438.32 Kimb-Clark 118.44 2.75 120.48 97.10 3.41 29.13 40798.39
Italy (€) Spain (€) AmerTower 177.82 5.39 178.15 132.02 1.67 67.85 78327.55 based on intraday trading over a rolling 52 week period.
ShgPdgBk RMB 10.66 -0.11 12.84 9.17 0.91 6.00 44182.21 KinderM 18.80 0.78 18.98 14.62 3.89 28.24 42556.74 ♦ ex-dividend
Enel 5.24 0.13 5.40 4.22 4.60 12.57 59958.91 BBVA 5.19 0.14 7.12 4.48 2.93 9.85 39009 Amgen 188.34 2.34 210.19 163.31 2.83 14.79 117199.84
Sinopec Corp 6.51 -0.05 8.35 5.37 9.67 9.79 21164.67 Kraft Heinz 47.62 0.16 72.78 41.60 5.17 5.72 58069.49 ■ ex-capital redistribution
ENI 15.12 0.60 16.89 13.22 5.51 9.30 61891.92 BcoSantdr 4.10 0.14 5.75 3.80 5.58 9.77 74981.31 Anadarko 45.23 3.39 76.70 40.40 2.34 37.36 22808.63
Sinopec Oil RMB 1.90 0.04 2.38 1.82 - -3.99 3374.47 Kroger 29.50 1.67 32.74 22.85 1.76 6.71 23533.42 # price at time of suspension
Generali 15.23 0.32 17.13 13.63 5.63 10.13 26791.85 CaixaBnk 3.01 0.13 4.33 2.85 5.06 9.01 20285.75 Anthem 311.58 7.33 311.84 215.52 0.93 18.36 80587.7
Denmark (kr) Iberdrola 7.25 0.07 7.33 5.71 4.57 17.31 53246.51 L Brands 27.34 0.93 50.42 23.71 8.83 10.15 7521.92
IntSPaolo 2.05 0.07 3.31 1.86 10.08 8.71 40370.45 Aon Cp 171.97 3.80 173.09 134.82 0.87 54.21 41417.96 LasVegasSd 60.31 1.30 81.45 47.39 4.87 12.75 47256.16
DanskeBk 124.40 4.40 251.90 119.75 8.23 7.21 16825.04 Inditex 25.59 1.46 30.30 21.85 2.13 22.73 89832.54
Luxottica 51.64 -0.14 59.54 48.62 1.97 24.38 28221.34 Apple 170.42 0.01 233.47 142.00 1.67 13.85 803578.02 LibertyGbl 25.66 0.53 36.50 19.88 - -14.80 5245.09
MollerMrsk 9044 632.00 11055 7520 1.76-230.96 13735.03 Repsol 15.17 0.31 17.51 13.61 5.85 8.54 26636.23
Unicred 11.22 0.99 18.25 9.54 2.90 8.89 28194.34 ArcherDan 41.98 0.22 52.07 39.16 3.11 10.60 23535.85 Lilly (E) 122.48 2.88 122.48 74.51 1.78 264.51 129745.79
NovoB 330.70 11.25 330.70 265.15 2.41 20.64 95477.36 Telefonica 7.50 0.19 8.48 6.59 5.42 12.73 43861.36

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
Gree Elec Apl 0.02 0.02 0.00 0.00 0.00 18.8 -13.64 Coca-Cola 45.24 45.59 -0.35 -0.77 -4.26 -8.6 -4.75 Feb 15 date Coupon S* M* F* price yield yield yield US Feb 15 date Coupon S* M* F* price yield yield yield US
Devon Energy 28.42 27.33 1.09 3.99 3.50 14.0 7.65 SBI NewA 262.95 262.95 0.00 0.00 -23.05 -8.1 -12.47 High Yield US$ US$
Airbus Grpe 110.98 107.18 3.80 3.55 11.04 11.0 20.23 OilNatGas 135.00 135.00 0.00 0.00 -9.15 -6.3 -5.89 Qwest Capital Funding, Inc. 08/21 7.63 B+ WR BB 101.05 7.15 0.05 0.49 4.62 Barclays plc 01/28 4.34 BBB Baa3 A 95.40 4.98 -0.01 -0.39 -
Delphi 18.70 17.68 1.02 5.77 1.81 10.7 19.80 AmerMvl 14.26 14.16 0.10 0.71 -0.92 -6.1 -3.52 High Yield Euro Barclays plc 01/28 4.34 BBB Baa3 A 95.40 4.98 -0.01 -0.39 -
HiltonWwde 81.75 80.16 1.59 1.98 7.84 10.6 12.76 Firstrand 62.75 63.20 -0.45 -0.71 -3.25 -4.9 -8.15 Aldesa Financial Services S.A. 04/21 7.25 - - B 60.25 35.51 0.04 -3.73 32.98 GTE LLC 04/28 6.94 BBB+ Baa2 A- 115.73 4.80 -0.04 0.02 2.13
Schneider 68.16 66.14 2.02 3.05 6.06 9.8 17.11 EDF 13.99 14.85 -0.86 -5.76 -0.71 -4.8 0.32 GTE LLC 04/28 6.94 BBB+ Baa2 A- 115.73 4.80 -0.04 0.02 2.13
Unicred 11.22 10.66 0.56 5.29 0.99 9.7 8.03 CmwBkAu 70.81 70.59 0.22 0.31 -3.25 -4.4 -1.64 Emerging US$ Goldman Sachs Group, Inc. (The) 05/29 5.25 BBB+ A3 A 104.33 4.72 -0.04 -0.23 2.05
AstraZen 6241.00 6149.00 92.00 1.50 545.00 9.6 -98.88 Midea 1.60 1.67 -0.07 -4.19 -0.07 -4.2 0.00 Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34 Citigroup Inc. 06/31 3.30 BBB+ Baa1 A 84.50 5.00 -0.04 -0.04 2.33
Cigna 197.87 192.22 5.65 2.94 16.50 9.1 0.67 Tencent 333.80 341.80 -8.00 -2.34 -13.80 -4.0 2.98 Brazil 01/23 2.63 BB- Ba2 BB- 95.75 3.80 -0.01 -0.40 1.29
Colombia 03/23 2.63 BBB- Baa2 BBB 96.10 3.66 -0.09 -0.21 1.17 Euro
Heineken 87.62 87.22 0.40 0.46 7.20 9.0 14.57 CSL 185.00 187.29 -2.29 -1.22 -7.60 -3.9 -4.61 HBOS plc 03/30 4.50 BBB- Baa1 A- 107.08 2.17 -0.01 -0.37 -0.50
EOG Res 100.25 96.96 3.29 3.39 7.75 8.4 1.68 SK Hynix 73800.00 77400.00 -3600.00 -4.65 -2900.00 -3.8 18.84 Poland 03/23 3.00 A- A2 A- 99.65 3.09 -0.01 -0.14 0.60
Turkey 03/23 3.25 - Ba3 BB 90.49 5.89 0.05 -0.64 3.40 HBOS plc 03/30 4.50 BBB- Baa1 A- 107.08 2.17 -0.01 -0.37 -0.50
Vivendi 24.01 22.73 1.28 5.63 1.81 8.2 11.21 ICICI Bk 342.15 342.15 0.00 0.00 -12.95 -3.6 -8.36 Electricite de France (EDF) 04/30 4.63 A- A3 A- 131.03 1.58 -0.06 -0.38 -1.09
Continental 138.65 133.70 4.95 3.70 10.40 8.1 8.11 HsngDevFin 1874.90 1874.90 0.00 0.00 -69.75 -3.6 -4.79 Mexico 10/23 4.00 BBB+ A3 BBB+ 100.79 3.81 -0.04 -0.05 1.32
Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07 Goldman Sachs Group, Inc. (The) 02/31 3.00 BBB+ A3 A 108.46 2.19 -0.03 -0.57 -0.48
Anadarko 45.23 43.80 1.43 3.26 3.39 8.1 -4.82 Novatek 1087.40 1090.60 -3.20 -0.29 -40.20 -3.6 -3.68
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Yen
Franklin 32.45 31.67 0.78 2.46 2.43 8.1 5.84 SandsCh 36.00 37.40 -1.40 -3.74 -1.30 -3.5 3.61
Russia 06/28 12.75 BBB- Baa3 BBB- 158.75 4.86 0.11 0.03 2.19 Poland 11/27 2.50 - A2 A- 109.87 1.30 0.00 0.01 -
CanNatRs 36.87 35.41 1.46 4.12 2.73 8.0 -0.89 Hitachi 3385.00 3441.00 -56.00 -1.63 -118.00 -3.4 1.26
RollsRoyce 971.40 948.80 22.60 2.38 69.80 7.7 -98.90 HyundMobis 214000.00 218000.00 -4000.00 -1.83 -7000.00 -3.2 9.74 Brazil 02/47 5.63 BB- Ba2 BB- 98.60 5.73 -0.05 -0.21 - £ Sterling
Alexion 129.42 125.93 3.49 2.77 9.28 7.7 15.82 DukeEner 87.51 87.82 -0.31 -0.35 -2.79 -3.1 2.78 Emerging Euro innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 128.68 3.20 0.00 -0.01 0.40
Richemont 72.26 71.54 0.72 1.01 5.14 7.7 8.14 ChShenEgy 19.10 19.52 -0.42 -2.15 -0.60 -3.0 4.37 Brazil 04/21 2.88 BB- Ba2 BB- 104.77 0.60 0.03 -0.14 -1.93 innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 132.03 2.88 -0.05 -0.33 0.21
MollerMrsk 9044.00 8952.00 92.00 1.03 632.00 7.5 3.50 MitsubEst 1850.50 1866.00 -15.50 -0.83 -57.50 -3.0 2.01 Mexico 04/21 2.38 BBB+ A3 BBB+ 104.76 0.15 0.01 -0.13 -2.38 Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other London
Mexico 04/23 2.75 BBB+ A3 BBB+ 106.94 1.04 -0.01 -0.19 -1.45 close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BBB- Baa2 BBB 115.50 1.19 0.00 -0.26 -1.48
Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all
other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Feb 15 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Feb 15 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 1.50-1.75 27-09-2018 1.00 1.75-2.00 1.25-1.50 Index change change change 1 month 1 year VIX 14.91 -1.31 16.22 36.20 10.91 Feb 15 Price £ Yield Day Week Month Year High Low £m
US Prime 5.50 27-09-2018 5.50 5.00 4.25 Markit IBoxx VXD 14.90 -0.92 15.82 33.17 4.07 - - - - - - - - -
US Discount 2.25 27-09-2018 0.75 2.50 1.75 ABF Pan-Asia unhedged 194.83 -0.16 -0.39 1.92 0.46 1.15 VXN 17.70 -1.32 19.02 38.70 14.58 - - - - - - - - -
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 347.56 -0.17 0.48 2.53 2.03 3.04 VDAX - - - - - Tr 4.5pc '19 100.18 0.74 5.71 5.71 -1.33 21.31 104.09 100.18 36.35
UK Repo 0.75 02-08-2018 0.25 0.50 0.25 Corporates($) 280.32 0.15 0.15 2.48 0.15 2.48 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 104.18 0.73 0.00 2.82 -12.05 -1.35 108.22 104.18 33.70
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 227.48 0.01 0.63 1.73 1.62 1.12 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 101.48 0.72 0.00 2.86 -12.20 -21.74 102.25 101.24 32.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 237.02 -0.06 -0.27 0.80 0.58 2.47 Tr 4pc '22 109.84 0.73 1.39 2.82 -13.10 -27.72 112.24 109.72 38.39
Gilts( £) 330.93 -0.26 0.62 1.75 1.21 5.92 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 124.18 0.88 2.33 2.33 -16.98 -36.69 125.97 122.06 35.49
INTEREST RATES: MARKET Global Inflation-Lkd 261.38 0.23 -0.80 1.15 -0.08 -2.16 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 101.46 1.07 1.90 1.90 -13.71 -35.54 101.65 96.80 23.73
Over Change One Three Six One Markit iBoxx £ Non-Gilts 342.21 -0.16 0.49 2.07 1.70 3.15 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 134.75 1.38 1.47 1.47 -9.80 -26.98 136.05 128.48 35.86
Feb 15 (Libor: Feb 14) night Day Week Month month month month year Overall ($) 242.17 0.19 0.05 1.21 0.05 1.21 Australia 11/20 1.75 99.94 1.79 0.01 0.01 -0.08 -0.32 Tr 4.25pc '36 140.58 1.54 1.99 1.32 -8.88 -22.22 141.53 133.08 30.11
US$ Libor 2.38275 -0.002 -0.001 -0.007 2.48138 2.69388 2.74400 2.91675 Overall( £) 331.16 -0.23 0.58 1.84 1.36 5.08 11/28 2.75 105.21 2.16 -0.01 0.00 -0.13 -0.73 Tr 4.5pc '42 155.84 1.65 1.23 0.61 -8.84 -19.90 156.90 145.84 26.95
Euro Libor -0.46471 0.000 0.002 -0.004 -0.41729 -0.34257 -0.29414 -0.17714 Overall(€) 232.47 -0.04 -0.01 0.96 0.80 2.16 Austria 10/23 1.75 109.43 -0.26 -0.01 0.01 -0.04 -0.53 Tr 3.75pc '52 154.72 1.62 1.25 0.62 -9.50 -17.35 156.17 141.38 23.87
£ Libor 0.67750 0.002 0.005 0.000 0.72950 0.86725 0.98975 1.12938 Treasuries ($) 227.51 0.24 -0.02 0.44 -0.02 0.44 02/47 1.50 107.17 1.20 -0.04 -0.01 -0.11 -0.38 Tr 4pc '60 172.81 1.58 1.28 1.28 -8.67 -15.05 176.65 156.07 23.89
Swiss Fr Libor -0.003 -0.77800 -0.71840 -0.65180 -0.51240 FTSE Belgium 06/21 1.50 104.46 -0.43 0.00 0.02 0.01 -0.29 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor -0.002 -0.10067 -0.08350 0.00317 0.10167 Sterling Corporate (£) 111.09 -0.13 - - 0.93 -1.80 03/28 5.50 144.70 0.47 -0.02 -0.02 -0.15 -0.38
Euro Euribor
Sterling CDs
-0.001
0.000
-0.36800
0.78000
-0.30800
0.88000
-0.23100
1.01500
-0.10800 Euro Corporate (€) 104.55 0.01 - - 0.80 -1.33 Canada 02/20 1.25 99.49 1.79 -0.03 0.02 -0.07 -0.04 GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 376.40 -0.72 - - 2.12 -40.60 06/28 2.00 101.02 1.88 -0.05 0.01 -0.08 -0.52
US$ CDs 0.000 2.47000 2.61000 2.73000 Eurozone Govt Bond 110.38 -0.10 - - 0.41 0.10 Denmark 11/20 0.25 101.45 -0.58 0.00 0.02 0.00 -0.25 Price Indices Day's Total Return Return
Euro CDs - - - - 11/23 1.50 108.89 -0.36 -0.02 -0.01 -0.07 -0.64 Fixed Coupon Feb 15 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series 1 Up to 5 Years 92.05 -0.01 2433.26 0.25 1.33 0.75
Short 7 Days One Three Six One Index change change change high low Finland 09/20 0.38 101.32 -0.46 0.00 0.03 0.05 -0.13
07/28 2.75 122.63 0.30 -0.02 -0.01 -0.12 -0.57 2 5 - 10 Years 181.85 -0.14 3556.69 0.75 4.96 1.01
Feb 15 term notice month month month year Markit iTraxx 3 10 - 15 Years 212.22 -0.25 4383.00 0.97 7.18 1.33
Euro -0.58 -0.28 -0.57 -0.27 -0.53 -0.23 -0.46 -0.16 -0.43 -0.13 -0.30 0.00 Crossover 5Y 299.50 -9.80 -19.94 -26.91 373.34 299.50 France 11/20 0.25 101.29 -0.48 0.01 0.02 0.03 -0.20
4 5 - 15 Years 188.63 -0.17 3760.32 0.81 5.66 1.12
Sterling 0.45 0.55 0.73 0.83 0.83 0.93 0.94 1.09 1.07 1.22 Europe 5Y 68.82 -2.32 -5.23 -9.22 92.98 66.84 05/23 1.75 108.51 -0.23 -0.01 0.00 -0.04 -0.44
5 Over 15 Years 340.07 -0.40 5372.19 1.94 9.04 1.61
Swiss Franc - - - - - - - - - - - - Japan 5Y 61.50 1.07 -2.33 -13.58 88.16 55.54 05/28 0.75 102.62 0.46 -0.03 -0.02 -0.11 -0.53
7 All stocks 179.15 -0.22 3669.60 1.13 5.67 1.48
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 86.34 -2.68 -6.65 -9.79 117.94 77.83 Germany 10/20 0.25 101.33 -0.54 0.00 0.04 0.07 -0.11
US Dollar 2.32 2.62 2.34 2.64 2.39 2.69 2.53 2.83 2.59 2.89 2.76 3.06 02/25 0.50 104.79 -0.29 -0.02 0.00 -0.07 -0.68 Day's Month Year's Total Return Return
Markit CDX 07/28 4.75 144.58 -0.01 -0.03 -0.01 -0.12 -0.76
Japanese Yen -0.20 0.00 -0.25 -0.05 -0.25 0.05 -0.15 0.15 -0.10 0.20 0.00 0.30 Index Linked Feb 15 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 177.16 -0.33 3.63 -8.36 219.33 166.45 08/48 1.25 114.32 0.71 -0.04 -0.02 -0.12 -0.68
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: 1 Up to 5 Years 309.72 -0.01 0.13 0.37 2490.99 0.13 2.03
Nth Amer High Yld 5Y 353.89 2.57 -9.43 - 384.09 346.17 Greece 02/25 3.00 100.77 3.80 -0.12 -0.13 -0.60 -0.69
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 2 Over 5 years 727.43 -0.20 -0.48 6.83 5460.80 -0.46 7.33
Nth Amer Inv Grade 5Y 65.03 0.07 -3.54 -8.61 94.73 57.99 02/28 3.00 98.88 4.20 0.00 -0.10 -0.58 -0.69
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 3 5-15 years 488.98 -0.12 -0.27 5.07 3843.54 -0.27 6.04
Ireland 10/20 5.00 109.08 -0.43 0.00 0.00 0.00 -0.08 4 Over 15 years 933.78 -0.23 -0.56 7.44 6840.14 -0.53 7.78
05/30 2.40 115.46 0.94 -0.02 0.01 -0.12 -0.33 5 All stocks 655.97 -0.19 -0.43 6.24 5004.18 -0.41 6.85
Italy 06/20 0.35 100.00 0.35 0.01 -0.12 0.05 0.35
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 10/23 0.65 95.42 1.68 0.01 -0.14 0.01 0.58 Yield Indices Feb 15 Feb 14 Yr ago Feb 15 Feb 14 Yr ago
09/28 4.75 117.25 2.69 0.00 -0.16 -0.04 0.49 5 Yrs 0.77 0.75 1.15 20 Yrs 1.66 1.64 2.07
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
03/48 3.45 97.15 3.61 0.00 -0.15 -0.05 - 10 Yrs 1.21 1.18 1.70 45 Yrs 1.58 1.56 1.83
Crude Oil† Feb 55.74 1.20 Corn♦ Mar 374.75 0.25 - - Prev return stock Market stocks
Japan 06/21 0.10 100.63 -0.17 -0.01 -0.02 -0.02 -0.06 15 Yrs 1.53 1.51 1.98
Brent Crude Oil‡ 66.34 1.69 Wheat♦ Mar 503.25 -4.00 Can 4.25%' 21 - - - - - - -
12/23 0.60 103.73 -0.17 -0.01 -0.01 -0.02 -0.10
RBOB Gasoline† Feb 1.57 0.06 Soybeans♦ Mar 907.75 2.00 Fr 2.25%' 20 - - - - - - -
12/28 1.90 118.87 -0.02 -0.01 -0.01 -0.04 -0.13 inflation 0% inflation 5%
Heating Oil† Feb 1.61 0.00 Soybeans Meal♦ Mar 306.20 0.20 Swe 0.25%' 22 - - - - - - -
09/47 0.80 105.07 0.61 0.00 0.01 -0.09 -0.18 Real yield Feb 15 Dur yrs Previous Yr ago Feb 15 Dur yrs Previous Yr ago
Natural Gas† Feb 2.63 0.06 Cocoa (ICE Liffe)X Mar 1758.00 42.00 UK 2.5%' 20 - - - - - - -
Netherlands - - - - - - - Up to 5 yrs -2.49 2.16 -2.49 -1.85 -3.15 2.18 -3.16 -2.33
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2316.00 81.00 UK 2.5%' 24 - - - - - - -
07/21 3.25 109.19 -0.54 0.00 0.02 0.04 -0.30 Over 5 yrs -1.70 23.92 -1.71 -1.44 -1.73 24.01 -1.74 -1.48
Uranium† Feb 28.50 0.00 Coffee(Robusta)X Mar 1530.00 17.00 UK 2%' 35 - - - - - - -
Carbon Emissions‡ - - Coffee (Arabica)♥ Mar 97.60 0.30 New Zealand 05/21 6.00 108.40 2.14 0.02 0.11 -0.02 -0.46 5-15 yrs -2.07 8.49 -2.08 -1.49 -2.21 8.52 -2.22 -1.62
US 0.625%' 21 - - - - - - -
White SugarX 355.00 12.70 04/23 5.50 115.00 1.74 0.04 0.07 -0.04 -0.67 Over 15 yrs -1.66 28.89 -1.67 -1.44 -1.68 28.94 -1.69 -1.46
Diesel† - - US 3.625%' 28 - - - - - - -
Sugar 11♥ 13.21 0.58 Norway 05/21 3.75 105.84 1.12 -0.02 -0.04 -0.02 0.04 All stocks -1.70 22.11 -1.71 -1.45 -1.74 22.23 -1.75 -1.49
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 1859.00 9.50 Cotton♥ Mar 70.31 0.18 05/23 2.00 103.07 1.26 -0.03 -0.04 -0.07 -0.18 See FTSE website for more details www.ftse.com/products/indices/gilts
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium Alloy 1526.00 26.00 Orange Juice♥ Mar 115.55 -2.00 Portugal 06/20 4.80 106.76 -0.30 -0.01 -0.05 -0.12 -0.23 ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 6196.50 59.50 Palm Oil♣ - - 10/23 4.95 122.05 0.21 -0.01 -0.09 -0.24 -0.82 Gilt Closing Prices information contained herein is proprietary to
Lead 2068.00 31.00 Live Cattle♣ Feb 126.65 0.43 BONDS: TEN YEAR GOVT SPREADS Spain 01/21 0.05 100.43 -0.17 0.00 -0.01 -0.03 -0.16 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 12385.00 190.00 Feeder Cattle♣ Mar 142.80 -1.33 10/28 5.15 135.55 1.24 0.00 -0.01 -0.18 -0.36 accurate, complete or timely; and does not constitute investment advice.
Tin 21120.00 210.00 Lean Hogs♣ Apr 59.58 1.00 Spread Spread Spread Spread Sweden - - - - - - - Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 2658.50 68.50 Bid vs vs Bid vs vs 12/20 5.00 109.72 -0.41 0.01 0.03 -0.02 -0.08
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland 04/21 2.00 106.16 -0.77 -0.02 -0.01 0.01 -0.13 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1311.45 -1.35 Feb 14 Month Year 04/28 4.00 140.31 -0.34 -0.02 0.00 -0.09 -0.53 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 2.16 2.16 -0.52 Italy 2.69 2.69 0.02
Silver (US cents) 1558.00 -11.50 S&P GSCI Spt 423.40 4.28 - United Kingdom 01/21 1.50 101.48 0.73 -0.01 0.01 -0.09 -0.19 Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria -0.26 - - Japan -0.02 -0.01 -2.69
Platinum 782.00 -6.00 DJ UBS Spot 80.96 1.15 - Belgium 0.47 0.48 -2.20 Netherlands - - - 07/23 0.75 99.79 0.80 -0.03 -0.02 -0.15 -0.47 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 1403.00 -5.00 TR/CC CRB TR 188.48 2.21 -3.75 Canada 1.88 1.89 -0.79 Norway 1.26 - - 12/28 6.00 145.18 1.12 -0.04 -0.03 -0.15 -0.54 use of the listed information. For all queries e-mail ft.reader.enquiries@morningstar.com
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark -0.36 - - Portugal 0.21 - - 07/47 1.50 96.33 1.66 -0.03 -0.04 -0.16 -0.35
Iron Ore 87.35 -0.45 UBS Bberg CMCI TR 14.75 4.37 -3.58 Finland 0.30 0.30 -2.37 Spain 1.24 1.24 -1.43 United States 11/20 1.75 98.67 2.53 -0.04 0.02 -0.03 0.16 Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 74.50 -0.25 LEBA EUA Carbon 23.70 -0.25 162.46 France 0.46 0.47 -2.21 Switzerland -0.34 -0.33 -3.01 12/23 2.25 98.92 2.49 -0.05 0.02 -0.05 -0.27
Baltic Dry Index 639.00 11.00 LEBA CER Carbon 0.24 -4.00 41.18 Germany -0.01 0.00 -2.68 United Kingdom 1.12 1.13 -1.55 11/28 5.25 121.98 2.67 -0.05 0.01 -0.05 -0.26
LEBA UK Power 595.00 -77.12 -86.34 Greece 4.20 4.20 1.53 United States 2.67 2.68 0.00 11/47 2.75 94.99 3.01 -0.03 0.01 -0.06 -0.17
Sources: † NYMEX, ‡ ECX/ICE, ♦ CBOT, X ICE Liffe, ♥ ICE Futures, ♣ CME, ♠ LME/London Metal Exchange.* Latest prices, $ Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.
unless otherwise stated.

20
How to lead
Hire ambitious staff and give them a mission
Peter Harf
Backing the right leaders
has been key to the JAB
chairman’s success,
write Leila Abboud
and Arash Massoudi
W
hen everything was
going wrong last year at
Coty, the cosmetics
company backed by
investment group JAB
Holdings, Peter Harf reacted with char-
acteristic ruthlessness.
Within months, the 72-year-old JAB
managing partner and chairman
replaced Coty’s chief financial officer
and chief executive, and took back the
Coty chairmanship from his longtime
associate, Bart Becht.
Describing last year’s share price
decline of more than 60 per cent as
“unacceptable” for JAB and its co-inves-
tors, Mr Harf says the situation “had to
have serious consequences” even for his
inner circle.
“It is an example of how seriously we
take our role,” says the German execu-
tive of how JAB oversees its portfolio of
coffee, beverages, and casual dining
companies. “When we saw that things
weren’t really working, we took action.”
Mr Harf believes that identifying tal-
ented people — and incentivising them
through performance-based pay — have
been key to his success over his nearly
40-year career. At JAB, this means pick-
ing smart, ambitious people to run each
of its companies, which include Keurig
Dr Pepper, Jacobs Douwe Egberts, and
Pret A Manger, and letting them get on
with it.
But just as important to Mr Harf is
knowing when to jettison those who are
no longer serving the mission he has
overseen since he was 35: growing the
wealth of Germany’s reclusive Reimann
family who are behind JAB.
In service of that pursuit, Mr Harf has
turbo-charged JAB’s dealmaking since
2012. The investment company has
signed 16 transactions worth more than
$50bn combined to become a chal-
lenger to leading consumer industry
РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
★ Monday 18 February 2019
Peter Harf: groups such as L’Oreal, Nestlé, and Star-
‘Lions hire lions bucks. With its family-backed ethos, it
and sheep hire aims to nurture companies for decades,
other sheep’ much longer than typical private equity
Charlie Bibby/FT groups.
Central to JAB’s rise is Mr Harf’s
enduring relationship with the Rei-
mann family. Their wealth can be traced
back to 1823 when Johann A Benckiser
founded Benckiser, a chemicals busi-
ness. He was joined by chemist Ludwig
Reimann in 1828, who married into the
Benckiser family and ended up inherit-
ing the company.
But it was Mr Harf who turned the
Reimann heirs into billionaires by
transforming Benckiser into the con-
sumer goods group Reckitt Benckiser.
The alumnus of Harvard Business
School and Boston Consulting Group
spent nearly two decades recruiting top
executives, shedding old business lines
and diversifying into household prod-
ucts through dealmaking.
He recruited talent from big US con-
sumer goods companies, offering them
work in an entrepreneurial, growing
company with big rewards if they suc-
ceed. But managing them proved chal-
lenging because they complained if they
felt they were stagnating. “There were
all these young guys with the knife
between their teeth, and ready to fight
the next war,” he says.
It was during the period of building up
Reckitt Benckiser that Mr Harf earned
the complete trust of the clan, whose
sixth generation has come to view him
as something of an older brother.
Despite a clear ambitious streak, he has
never left their service.
They earned his loyalty at a moment
of crisis in his life. In 1990 Mr Harf’s wife
‘There were all these young
guys with the knife
between their teeth, and
ready to fight the next war’
Mechtild fell ill with an aggressive form
of leukaemia. In Germany at the time, it
was very difficult to find blood marrow
donors since no central database
existed. Not only did the Reimanns’
stand by Mr Harf, they also funded his
wife’s expensive treatment.
“I tried to quit, but the Reimanns’
wouldn’t let me,” says Mr Harf, recalling
his wife’s final months. “They wanted to
help us.”
From then on, whenever anyone tried
to lure away Mr Harf — a frequent
occurrence, he says — the answer was
simply no. “For me it was very clear, this
is it. I will stick with this family through
thick and thin; it was a life-long commit-
ment.”
He is now investing on behalf of the
seventh generation of Reimanns’,
whose combined fortune Forbes puts at
$17.6bn.
Mr Harf’s dedication has not waned
despite reaching an age where many
would consider retiring.
When he turned 65, the Reimanns’
asked him about succession planning.
Mr Harf decided to recruit a team at JAB
who would gradually take over as he
aged. “They don’t need a new me: that
would be a suboptimal solution,” he
says. His vision was for JAB to be mod-
elled on Berkshire Hathaway, the
investment conglomerate built by his
idol, Warren Buffett. Success would
come not only from backing the right
leaders but by patiently building
brands, embarking on deals and taking
companies public to cash in on bets.
He ended up recruiting an old col-
league and friend, Mr Becht, who had
recently retired as CEO of Reckitt
Benckiser after more than a decade
turning the group into one of the best-
performing consumer goods compa-
nies. The Dutch executive’s operational
savvy was complemented with the
financial acumen and dealmaking
prowess of Olivier Goudet, a Frenchman
who ascended the ranks at Mars, the
family-owned US food group.
At the Reimanns’ request, the three
managing partners acquired shares in
JAB. Today the family owns 90 per cent,
and the equity partners own the rest.
Mr Harf felt he had assembled a
dream team: “My mantra has always
been that I need to hire people who are
better than me. Lions hire lions and
sheep hire other sheep.”
Mr Goudet came onboard with a bold
idea for JAB: becoming a significant
player in the global coffee business.
With the trio in place, JAB embarked
on a period of frenetic acquisitions.
But Mr Harf’s carefully-laid plans
took a sudden hit when Mr Becht quit
JAB in January. The trio had fallen out
over the pace of dealmaking and the
troubles at Coty, which exacerbated
divergent views over the level of
involvement JAB should have in its port-
folio companies.
“The idea was that I would step off the
escalator and they would step on to it,”
Leadership he says. “Maybe some of that was wish-
More interviews ful thinking — it never happens exactly
illuminating the as you want, and the exit of Bart shows
personalities of that.”
high-profile Mr Harf is not worried, though. He
leaders by
focusing on the will find someone to replace Mr Becht.
And after all, Mr Buffett is still working
issues they faced
at the age of 88. “I’d rather sit in the
ft.com/howtolead
boardroom than at the beach,” he says.