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TUESDAY 18 DECEMBER 2018 WORLD BUSINESS NEWSPAPER USA $2.50 Canada C$3.00

Fed: stay the course Blurred vision Trumping China

A policy flip flop could add to market Can Japan’s SoftBank justify its high There are no easy wins in the US’s
instability — MOHAMED EL-ERIAN, PAGE 18 debt levels? — LEX IN-DEPTH, PAGE 7 trade war — GIDEON RACHMAN, PAGE 9

Tech groups Briefing

accused in i Asos suffers as retail woes spread online
Shares in UK-based Asos plunged almost 40 per
Russia probe cent yesterday after the online fashion retailer
issued a profits warning, triggering a sell-off in
retail stocks across Europe.— PAGE 11
Former FBI director James Comey, cen-
tre, arriving on Capitol Hill in Washing- i Hungarians protest over ‘slave laws’
ton yesterday to testify at hearings into Thousands of people took to the streets of Budapest
the 2016 election campaign as a report for a fourth day of protests against new laws that
laid out the extent that Russia used US critics say erode workers’ rights and codify
tech groups to interfere in US politics. government control over the judiciary.— PAGE 2
The report, commissioned by the Sen-
ate intelligence committee, concluded i May warns against second Brexit vote
that Facebook, Twitter and Google Theresa May, prime minister,
failed to disclose key information on has warned of the “irreparable
how their services may have been used damage” that holding a second
by the Kremlin to promote Donald referendum on Britain’s EU
Trump during the presidential race. membership would inflict on
Mr Comey appeared in front of two the country’s politics.— PAGE 3
Republican-led committees investigat-
ing bias before the election, which said i Nissan delays choice of Ghosn successor
his team had conspired against Mr Renault and Nissan are grappling with the difficulty
Trump when probing his ties to Russia. of replacing Carlos Ghosn as they as they moved
Report page 11 to find successors to the man who built the now-
AP Photo/J. Scott Applewhite teetering automotive empire.— PAGE 12

i China debates Xi’s economic vision

Malaysia charges Goldman and

An unusual and relatively open debate has emerged
in recent weeks among economists in China on the
nature and direction of Beijing’s economic reform
programme.— PAGE 3

i Vienna presses Egypt to stem migration

two bankers over 1MDB scandal Austria is to hold talks with Egypt this week in an
attempt to revive the EU’s campaign for north
African countries to take in more Mediterranean
Sea migrants.— PAGE 2

i Kabila challenger faces down bullets

3 US firm accused of helping ‘misappropriate’ $2.7bn 3 Prosecutors seek $3bn-plus fines Martin Fayulu, a presidential candidate in the
Democratic Republic of Congo, fears the election
will be decided by the state, after security forces
EDWARD WHITE — TAIPEI intensifies scrutiny of the investment department, allege that as much as ‘We believe the fund’s former general counsel. reportedly fired on his convoy last week.— PAGE 4
JOHN REED — BANGKOK
bank’s conduct after the US Department $4.5bn was misappropriated from the Mr Low’s spokesman said he main-
STEFANIA PALMA — LONDON
of Justice indicted the two former bank- investment fund. The scandal has these tained his innocence and would not sub-
Malaysian prosecutors have filed crimi- ers last month on similar charges. already snared former premier Najib charges are mit to any jurisdiction where “guilt has Datawatch
nal charges against Goldman Sachs and Tommy Thomas, Malaysia’s attorney- Razak, 1MDB’s founder. He has pleaded been pre-determined by politics and
two of its bankers for their role in the general, said he was filing charges not guilty to charges of corruption. misdirected. there is no independent legal process”.
alleged embezzling of billions of dollars against subsidiaries of Goldman and Goldman said the bank disputed the If found guilty, the individuals EU–Japan trade
from the country’s scandal-wracked former bankers Tim Leissner and Roger allegations and would defend itself
We will charged face a maximum prison sen- % of countries’ exports/imports
The European
Council is poised
state investment fund, 1MDB. Ng Chong Hwa, whom he described as against the accusations. “We believe vigorously tence of 10 years and a heavy fine. Exports extra-EU to Japan to sign off an
EU-Japan trade
The Malaysian attorney-general’s Goldman’s “key employees” in the case. these charges are misdirected. We will A partner at a Malaysian law firm Exports Japan from EU
office is seeking fines worth more than The two bankers are accused of brib- vigorously defend them and look for-
defend involved in financial services described Imports extra-EU from Japan agreement this

$3bn from Goldman subsidiaries and its ing Malaysian officials to secure involve- ward to the opportunity to present our them’ the severity of Malaysia’s accusations Imports Japan from EU
20
week. The deal
will strengthen the
former bankers, accused of helping “dis- ment in the auction of $6.5bn of bonds case,” the bank said. “The firm contin- against Goldman as “unprecedented”.
honestly misappropriate” $2.7bn from for 1MDB. Goldman received $600m in ues to co-operate with all authorities
Goldman Sachs They would “send chills down the spines 15
roles of Brussels
and Tokyo in
bonds issued by 1MDB in 2012 and 2013. fees for its role, according to Mr Tho- investigating these matters.” of one or two expat bankers”. 10 setting global
The charges brought by Malaysia yes- mas, a total that was “several times Malaysia also filed charges against The Malaysian charges closely mirror 5 product standards.
terday are the first time that Goldman higher than the prevailing market rates Low Taek Jho, the fugitive Malaysian allegations filed by US prosecutors last 0
The EU accounts
has been directly targeted by prosecu- and industry norms”. businessman known as Jho Low who is month, which also charged Mr Ng and 1995 2000 05 10 15 for 11 per cent
tors for its alleged role in the widening Law enforcement agencies from sev- also sought by Singaporean and other Mr Leissner for their role in the bond Source: Unctad of Japan’s trade
scandal. Kuala Lumpur’s move eral countries, including the US justice authorities, and Jasmine Loo Ai Swan, offerings.

New York turns into second Silicon

Valley as Google builds $1bn campus
ALIYA RAM — LONDON of how the tech industry’s breakneck League’s Cornell University on Roose-
RICHARD WATERS — SAN FRANCISCO
growth is forcing companies to tap new velt Island. Cities have clamoured for
New York has bolstered its credentials pools of staff outside Silicon Valley. new offices from the big Silicon Valley
as the East Coast’s answer to Silicon “New York City continues to be a great tech groups, offering financial incen-
Valley after Google announced it would source of diverse, world-class talent — tives and promising to invest in trans-
Iran’s justice minister build a new $1bn office campus in lower that’s what brought Google to the city in port links and other infrastructure.
leads charge against US Manhattan just weeks after Amazon 2000 and that’s what keeps us here,” But while Amazon’s expansion has
unveiled a similar plan in Queens. said Ruth Porat, chief financial officer. received a mixed reaction in New York
Iran’s newest weapon in its battle with Staff will move into two of the new — prompting jubilation from property
President Donald Trump is Laya The new Google offices, which will buildings by 2020 and the third by 2022. developers and politicians but protests
Joneydi, a rare woman in a male- occupy three separate buildings in the They will have space for Google to dou- from some residents in Queens, who
dominated system. As vice-president Hudson Square neighbourhood, would ble its workforce in New York over the argue they will not benefit from the
for legal affairs, the academic has be a significant expansion of the tech- next decade. The campus will house influx of investment — Google has pur-
already secured a victory over the US, nology group’s already considerable Google’s global commercial operations. sued a low-key strategy that has not
winning a case at the International presence in the city, which includes the Although New York has long been a included city tax breaks or subsidies.
Court of Justice against any $2.4bn purchase in March of Chelsea hub for finance and creative industries, Together, Google’s new offices in Chel-
re-imposition of sanctions against aid, Market, a former biscuit factory-turned Michael Bloomberg sought while he was sea and Hudson Square will allow it to
food and medicine. In an interview with shopping mall and office complex. mayor to turn it into the US’s second city double its staff in the city from 7,000 at
the FT, Ms Joneydi says she intends to The New York moves by Google and of tech after the 2008 financial crisis, present. Amazon is seeking to hire
remain an independent figure. Amazon, as well as last week’s Apple setting up a separate office dedicated to 25,000 staff in New York.
Interview i PAGE 4 announcement that it was building a attracting the sector and backing an Additional reporting by Joshua Chaffin
$1bn campus in Austin, Texas, are a sign applied sciences branch of the Ivy in New York

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2 ★ FINANCIAL TIMES Tuesday 18 December 2018

INTERNATIONAL

Central Europe Revised budget

Protests against Italy’s leading

parties agree
‘slave law’ add to spend less
in bid to avert
to pressure on Brussels curbs
Hungary’s Orban MILES JOHNSON — ROME

The leaders of the two parties in Italy’s

populist coalition have backed propos-
als by the prime minister to cut
planned spending for next year in a bid
to avoid sanctions from Brussels.
Thousands denounce to a foundation run by an ally of the
prime minister. Matteo Salvini, leader of the anti-migra-
ruling Fidesz in fourth The flagship public channel began its tion League, and Luigi Di Maio, who
day of demonstrations morning broadcast yesterday without heads the anti-establishment Five Star
mention of the previous night’s protest. Movement, said they had given their
VALERIE HOPKINS — BUDAPEST Balazs Hidveghi, a spokesman for Mr blessing to Giuseppe Conte’s revised
Orban’s Fidesz party, said it was “quite budget plan.
Thousands of people took to the streets obvious” that the “Soros network” was There was “complete agreement
of Budapest for a fourth day of protests behind the protest, referring to George between Conte, Salvini and Di Maio on
against new laws that critics say erode Soros, the US-Hungarian billionaire fin- the numbers and content of the pro-
workers’ rights and codify government ancier who has been a frequent target of posal to send to Brussels”, the League
control over the judiciary. Mr Orban’s government. said yesterday.
The protests are becoming the most co- Mr Hidveghi alleged that protesters The changes are expected to be sub-
ordinated show of opposition to the way and opposition MPs had been “provok- mitted to Italy’s senate this week before
in which Viktor Orban, the nationalist ing” the police “in order to produce bad being approved by the country’s parlia-
prime minister, has centralised power news about Hungary”. ment by the end of the year.
since taking office in 2010. Another pro- Zselyke Csaky, research director at The changed budget — which is likely
test was called for yesterday evening. Freedom House, the democracy watch- to result in a dilution of the coalition’s
Students, union workers and opposi- dog, said the protests were significant flagship policies, such as Five Star’s so-
tion MPs gathered in front of Hungary’s because such levels of outrage had not called citizens’ income welfare pay-
parliament on Sunday and later been seen since riots in 2006 following ments and a reduction in the retirement
marched in sub-zero temperatures to the leak of a recording in which the age — marks a sharp reversal for Mr
the headquarters of MTV, the public tel- leader of the ruling Socialists admitted Salvini and Mr Di Maio, both of whom
evision broadcaster. About 15,000 peo- his party had lied to win an election.
ple participated throughout the day, Ms Csaky compared the protests to
and police used tear gas against a crowd previous demonstrations against gov-
‘We have agreed further
of about 2,000 outside MTV, where ernment attacks on the Central Euro- fiscal reductions that will
10 opposition MPs had asked to read pean University, the Soros-founded
protesters’ demands. institution that said last month it would
probably be appreciated
The protests were triggered by the move many of its operations to Vienna by the European Union’
approval last week of a law that would due to political pressure.
allow employers to seek up to 400 hours “Previously, everyone was so well had previously pledged to stick to their
of overtime a year. Opponents have behaved. Even if 50,000 people partici- Anger: istrative court system under the super- Fidesz said Europe’s Venice Commission, which original plans.
called the measure a “slavery law”. pated in the protests for Central Euro- Hungarians vision of the justice minister. The sys- advises on constitutional matters, yes- Under Mr Conte’s proposal to the
The measure was approved amid cha- pean University last year, there was an demonstrate tem, which will deal with government- protesters terday criticised another set of laws European Commission, Italy will pass a
otic scenes, with opposition MPs whis- almost festive atmosphere. This time it outside the state related activities, will start functioning had been passed this summer. The measures, budget law by the end of the year that
tling, sounding sirens and throwing is different,” said Ms Csaky. television in January 2020 and cases before it will known as the “Stop Soros” laws, impose will produce a budget deficit of 2 per
pamphlets from the parliament balcony Mr Orban has been under increased headquarters not be subject to final review by the provoking a 25 per cent tax on activity deemed to cent of gross domestic product in 2019,
in an attempt to disrupt the vote. The fire from Brussels over his anti-migrant in Budapest at supreme court. the police be “promoting migration”. instead of the 2.4 per cent first put for-
law nevertheless passed easily because policies and his party’s consolidation of the weekend Dunja Mijatovic, the Council of The panel found that the laws consti- ward by the government.
Mr Orban’s Fidesz party has a two- power. The European Parliament voted Bernadett Szabo/Reuters Europe’s human rights commissioner, ‘to produce tuted “unjustified interference, with the However, the offer has so far failed to
thirds majority in parliament. in September to initiate Article 7 pro- has called for Hungary’s president bad news’ right to freedom of expression and of satisfy the commission. Pierre Moscov-
Opponents are also calling for an ceedings, a process that could culminate to send the laws back to parliament “to association of the NGOs affected”, the ici, the EU’s economy commissioner,
“independent public media”, citing con- in sanctions, including a loss of Hun- enable a fully informed review of the council said. “The imposition of this tax last week said it was a “step in the right
tinuing consolidation of the industry in gary’s EU voting rights, although this is package”. will have a ‘chilling effect’ on the exer- direction, but we are not there yet”.
the hands of Orban loyalists, including highly unlikely. A joint panel of legal experts from the cise of basic human rights and on indi- The commission had rejected Italy’s
an initiative announced last month to Another set of laws approved last Organisation for Security and Co-opera- viduals and organisations that defend earlier budget plans, describing them as
donate almost 500 Fidesz-friendly titles Wednesday pave the way for an admin- tion in Europe and the Council of them.” an “unprecedented” breach of bloc
spending rules, and raised the prospect
of levying fines on Rome if it failed to
alter its course.
Digital duty The League also denied a report by
an Italian newspaper that Mr Conte

France brings forward plans to impose tax on large tech groups had threatened to resign if his new
budget plan was scuppered by intra-co-
alition fighting between the League and
Five Star.
Following the meeting, Mr Salvini
DAVID KEOHANE — PARIS giants”, after which France would act On Saturday, an estimated 66,000 the 287,000 that took part more than a sels has indicated that the increased told reporters: “We have found an
on its own if it failed to persuade its protesters took to the streets of France, month ago. deficit will be tolerated so long as it is agreement on further fiscal reductions
France will move to collect a tax on big
EU partners to agree to a pan-European half the number that demonstrated one But the measures have also raised temporary. that will probably be appreciated by the
digital groups from January without
levy. week previously and well below questions across Europe about France’s The French levy on big digital groups European Union,” according to Italy’s
waiting for an agreement on a Euro-
However, recent moves by Emmanuel commitment to the EU’s 3 per cent is expected to include taxes on the sale Ansa news agency.
pean levy, as its finances come under
Macron, the French president, to calm budgetary red line. With spending cuts of private data and on revenue from The government is also discussing
pressure from measures taken to
anti-government street protests by the and extra revenue, including from the online market places, and will be cali- additional budget measures, such as
appease the gilets jaunes protesters.
yellow vests have pushed the country’s tax on digital groups, France hoped to brated to not hit smaller companies, raising taxes on luxury cars to fund
Bruno Le Maire, the finance minister, budget deficit above 3 per cent and left keep the deficit closer to 3.2 per cent, according to the finance ministry. incentives for electric and hybrid vehi-
told journalists yesterday that France Paris looking for extra sources of reve- Edouard Philippe, the prime minister, It will have a wider scope than the lat- cles, as well as cuts to so-called golden
would impose a new domestic tax on nue. made clear in an interview with est European compromise proposal — a pensions of state employees.
international technology groups such The measures announced by the pres- daily Les Echos. narrow levy on advertising sales that Mr Di Maio did not explain in detail
as Google and Facebook from the start ident last Monday, which include a “We are focusing on the public would be likely to exclude companies in a blog post published on the Five Star
of 2019, a move that will raise €500m a boost in income for the lower accounts, and we are taking a series of such as Amazon and Apple. website how his party’s main policies
year for the state. The timing of the tax paid, appear to have taken the immedi- measures, on business and spending, of A more ambitious European proposal would remain intact after the changes
is three months sooner than originally ate sting out of the movement which the order of €4bn,” explained Mr has been blocked by some EU govern- to the budget, saying only that “there
planned. sprang up in protest at green fuel taxes Philippe. ments — including Denmark, Sweden is very little time left to approve a
At the start of December Mr Le Maire but is now focused more broadly on liv- France only last year emerged from a and Ireland — that have resisted target- budget law that contains measures
said he was giving himself “until March ing standards and dissatisfaction with A levy on Facebook and its peers is long period with a budget deficit in ing the revenues, rather than profits, of that everyone said would be impossible
to get a deal on a European tax on digital Mr Macron. intended to raise €500m a year breach of EU spending rules, but Brus- tech companies on their soil. to implement”.

North Africa
MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription Austria urges Egypt to help EU combat people-smuggling
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
MICHAEL PEEL — BRUSSELS issue in Europe, police on Sunday fired phone last week before their Vienna Egypt,” said one European diplomat.
HEBA SALEH — CAIRO
Trump vs the Valley
Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
A Five Star plan?
Italy’s populists are trying to woo
the poor — BIG READ, PAGE 11
Dear Don...
May’s first stab at the break-up
letter — ROBERT SHRIMSLEY, PAGE 12
tear gas and water cannon at demon- meeting. “Why wake a sleeping dog for all the
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

Austria is to hold talks with Egypt this strators outside the EU headquarters in But the EU overtures to Mr Sisi have wrong reasons?”
customs risks THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

Brussels after about 5,000 people met with scepticism from some diplo- The move to co-operate more closely
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE
week in an effort to use the last days of
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
TECHNOLOGY IS
being swamped i Report outlines longer NHS waiting times
A report on how the health service can survive CHANGING AN
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped.— PAGE 4

marched against a UN migration pact. mats, who note Cairo is unwilling to with Mr Sisi has also raised human
i Emerging nations in record debt sales Warning: this article may be

its EU presidency to revive the bloc’s

FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

government debt in the first quarter of this year,
upsetting — LIFE & ARTS
taking advantage of a surge in optimism toward
emerging markets as trade booms.— PAGE 15

3 Confidence in IT plans ‘has collapsed’

Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
How To Spend It
“We would like to co-operate with offer more help, given the minimal rights concerns as the former general,
A survey has revealed that a
3 Fivefold rise in declarations expected record 455 tall buildings are
planned or under construction over disputed painting of Jane Austen

campaign for north African countries

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

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

fresh tax probe

countries so they stop people from leav- migrant flows from Egypt to the bloc. who took power after a 2013 coup,
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

to take in more migrants.

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

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

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

Cairo has responded coolly to EU pleas one EU diplomat. “That’s where Egypt heavy price tag on any increased co- Critics also say the EU appeared pre-
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
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
The revelations about the system,
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.”
HMRC’s letters to the select commit-
tee, which will be published today, pro- AFP
Terror attacks inwith
co-operating

were contacted
Highlighted
western

attack byOthers
Europe after
authorities
offices in London, Paris and Amsterdam
Recent

Martin Luther King Day, Presidents’ Day, Good Friday,

The Swiss bank said yesterday it was tax authority added: “The international
reach
itsattacks
notably the message
2011
— of this investigation sends a clear
that there is no hiding place for
massacre bythose seeking to evade tax.”
local officials
“concerning client tax matters”. Anders BreivikDutch
Norway, the
in prosecutors, who initiated the
Dutch authorities said their counter- action, said they seized jewellery, paint-
The lure of the exotic
Robin Lane Fox on the flair
of foreign flora — HOUSE & HOME
called Customs Declaration Service, are vide no explanation for the rating Lloyd’s of London chose Brus- insurers to follow. Most of the EU, with Dublin and Luxem- parts in Germany wereBrussels attacks in Paris
also involved, ings and gold ingots as part of their

330 Hudson Street, Memorial Day, Independence Day, Thanksgiving,

while Australia’s revenue department and Nice, and the while French officials said their
probe;
likely to throw a sharper spotlight on change, but some MPs believe it was sels over “five or six” other business written in Brussels bourg thought to be more likely Norway Brussels suicide
said it was investigating a Swiss
Nice bank. investigation had revealed “several

for it to share the load and broaden comes in, because it has been extremely operation, citing the example of the sumptuous — and irritated north Afri-
whether Whitehall can implement a caused by Mrs May’s unexpected deci- cities in its decision to set up an will be reinsured back to the homes for the industry. But Paris bombings — have
host of regulatory regimes — in areas sion to leave the EU customs union. EU base to help deal with the syndicates at its City of London Mr Nelson said the city won on The inquiries threaten to undermine thousand” bank accounts opened in
bucked the trend
ranging from customs and immigration Timetable & Great Repeal Bill page 2 expected loss of passporting headquarters, pictured above. its transport links, talent pool efforts by the country’s banking sector Switzerland and not declared to French
of generally low
to agriculture and fisheries — by the Scheme to import EU laws page 3 rights after Brexit. The Belgian capital had not and “extremely good regula- to overhaul business models and ensure tax authorities.
fatalities from
time Britain leaves the EU. Editorial Comment & Notebook page 12 John Nelson, chairman of the been seen as the first choice for tory reputation”. customers meet international tax The Swiss attorney-general’s office
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in
requirements following a US-led clamp- western Europesaid it was “astonished at the way this
Problems with CDS and other projects Philip Stephens & Chris Giles page 13 centuries-old insurance mar- London’s specialist insurance Lex page 14

New York, NY 10013 essential to Brexit could force London to JPMorgan eye options page 18 ket, said he expected other groups after the UK leaves the Insurers set to follow page 18
billions of dollars in fines.

the day after Thanksgiving, Christmas Day and the

down on evaders, which resulted in operation has been organised with the
deliberate exclusion of Switzerland”. It
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

coastal patrols in countering people- effective [in its own waters] in stopping €6bn payment to Turkey agreed under can states — by announcing its plans in
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
banker loses job over WhatsApp boast
EU’s judicial liaison body.
Credit Suisse, whose shares fell 1.2 per

day after Christmas Day.

evade tax. It agreed to fines of $2.6bn.
Additional reporting by Laura Noonan in
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
How high earners can evade
a pension headache — FT MONEY

smuggling along the wider north Afri- people from leaving. It has shown that it a 2016 deal for Ankara to take back June to send rescued migrants to coun-
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to
JENNIFER THOMPSON — LONDON

Subscriptions and Customer Service

Christopher Niehaus, a former Jeffer- ban people from installing apps on their
ies banker, passed confidential client private phones.
Brussels takes tough stance on Brexit
A boastful WhatsApp message has cost
a London investment banker his job information to a “personal acquaint- Andrew Bodnar, a barrister at Matrix
and a £37,000 fine in the first case of ance and a friend” using WhatsApp, Chambers, said the case set “a precedent
Shutdown risk as border according to the FCA. The regulator said in that it shows the FCA sees these mes-
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
chat app. to his employer voluntarily. else”.

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Congressional Republicans seeking to The FCA said Mr Niehaus had shared Information shared by Mr Niehaus

can Mediterranean coast. is possible to secure a long shoreline — migrants who travelled from its terri- tries outside the bloc without first con-
avert a US government shutdown after The fine by the Financial Conduct confidential information on the messag- included the identity and details of a
April 28 have resisted Donald Trump’s Authority highlights the increasing ing system “on a number of occasions” client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
attempt to tack funds to pay for a wall problem new media pose for companies last year to “impress” people. Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
on the US-Mexico border on to that need to monitor and archive their Several banks have banned the use of boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would
stopgap spending plans. They fear staff’s communication. new media from work-issued devices, his mortgage if a deal was successful. The EU yesterday took a tough opening fully been singled out for unfavourable require “existing regulatory, budgetary,
that his planned $33bn increase in Several large investment banks have but the situation has become trickier as Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatment by the council at the behest of supervisory and enforcement instru-

[email protected], www.ft.com/subsusa
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
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
postage paid at New York, NY and at additional
Britain’s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
Spain”. Madrid defended the draft
clause, pointing out that it only reflected
“the traditional Spanish position”.
ments and structures to apply”.
Mr Tusk wants talks on future trade
to begin only once “sufficient progress”

Abdel Fattah al-Sisi, Egyptian presi- and others could emulate it.” tory to the Greek islands. sulting those countries. “When you fol-
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
US budget Q&A and accessed without permission from the issued BlackBerrys. for comment. About 2.3m people will benefit from European Council president Donald Mr Tusk’s text left room for negotiators citizen rights, which Whitehall officials
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned Bankers at two institutions said staff Additional reporting by Chloe Cornish today’s increase in the national living Tusk’s first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are
WhatsApp from work-issued Black- are typically trained in how to use new Lombard page 20 wage to £7.50 per hour. But the rise which are an important milestone on minister Theresa May’s allies insisted possible if certain conditions are met.

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will pile pressure on English councils,
which will have to pay care workers a
lot more. Some 43 per cent of care
staff — amounting to 341,000 people
aged 25 and over — earn less than the
mailing offices; Post-Master. Send address changes
the road to Brexit, sought to damp Brit-
ain’s expectations by setting out a
“phased approach” to the divorce proc-
ess that prioritises progress on with-
drawal terms.
that the EU negotiating stance was
largely “constructive”, with one saying it
was “within the parameters of what we
were expecting, perhaps more on the
upside”.
Boris Johnson, the foreign secretary,
reassured European colleagues at a
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation

dent, is due to meet Sebastian Kurz, Backers of the Egypt plan hope Mr Sisi “We never understood in the first low the debate in Europe, you get the
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Austria’s chancellor, in Vienna in a visit will use his Vienna visit to enlarge on place why they were so gung-ho about sense that European leaders often forget
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297.99 297.73 0.09 Gold $
Mar 30
50.22
52.98
1248.80
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49.51
52.54
1251.10
Fed Funds Eff
%chg US 3m Bills
1.43 Euro Libor 3m
0.84 UK 3m
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0.66
0.78
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that includes a gathering of African and what he is prepared to offer and what he that other countries have their own pri-
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Executive appointments All rights reserved. European leaders on economic co-oper- wants in return. orities,” said Izza Leghtas, senior Europe
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In a sign of continuing tension on the tion. Mr Sisi and Mr Kurz spoke by Fattah al-Sisi and Sebastian Kurz tion with Morocco.
Tuesday 18 December 2018 ★ FINANCIAL TIMES 3

INTERNATIONAL

China economists dare to disagree with Xi’s vision

Intellectuals challenge president’s centralised approach to growth as party marks 40th anniversary of Deng reforms
TOM MITCHELL AND YUAN YANG speed up their development while pre- governments too much — our African two equally hyped speeches this year —
BEIJING
serving their independence”. friends should be careful.” at the Chinese government’s Boao
Five months after Chinese scholars and He added: “Government, military, Edmund Phelps, a Columbia profes- Forum in April and its “inaugural
officials quietly grumbled about Xi Jin- society and schools — north, south, sor and 2006 Nobel Prize winner for export fair” in October.
ping’s unprecedented political power east, west and centre — the party is ruler economics, added: “China needs broad If Mr Xi delivers another address that
grab this year, an unusual and relatively of all.” innovation from ordinary people and is long on rhetoric and short on sub-
open debate has emerged about the Despite the most repressive political the government can’t help much with stance, the chances are that the eco-
nature and direction of China’s eco- climate in Beijing since the 1989 Tianan- that.” nomic debate will quickly fade as the
nomic reform programme. men Square massacre put Deng’s Such arguments have seemingly been
Unlike the largely anonymous sum- reforms on hold for three years, an bolstered by slower economic growth in
mer carping about Mr Xi’s elimination increasing number of Chinese econo- China and Donald Trump’s punitive tar-
‘China’s leadership may
of term limits in March, which posi- mists have dared to disagree openly iffs on Chinese exports, which have make mistakes that more
tioned him to be president for life if he with policies associated with Mr Xi. depressed market sentiment and busi-
chooses, in recent weeks economists Most have, however, been careful not ness confidence. As China’s stock mar-
vigorous and open debate
have argued publicly whether the presi- to criticise the president directly. Their kets declined a further 8 per cent over could have helped to avoid’
dent’s rapid centralisation of power over voices are also useful for powerful offi- the past three months, falling share
the past six years would enhance or con- cials, such as Vice-Premier Liu He, who prices forced many private sector com- party braces itself for a series of sensi-
strict the next phase of development. do worry about market distortions and panies to sell shares pledged as collat- tive commemorations next year, includ-
Mr Xi will wade into the middle of this trade frictions caused by powerful state- eral against state bank loans. ing the 30th anniversary of Tiananmen.
debate today when he addresses the owned enterprises and rigid industrial The shares were often snapped up by “Experts who voice their worries
nation on the 40th anniversary of polices. state-owned rivals or government- about the enormous challenges facing
China’s era of “reform and opening”. “China’s rapid growth over the past 40 controlled lenders, adding to the China’s economy are taking a significant
Deng Xiaoping, the former “paramount years has come from marketisation, malaise now hanging over China’s pri- risk,” said Mr Gewirtz.
ruler”, is credited with launching the entrepreneurship and technological vate sector. “We should pay attention to their
economic reforms that powered its [learning] from the west rather than the Many Chinese economists now hope warnings. [Otherwise] China’s leader-
remarkable rise at a meeting of the so-called China model,” Zhang Weiying, that Mr Xi will use today’s anniversary ship may make mistakes that more vig-
Communist party’s Central Committee an economics professor at Peking Uni- to finally embrace a vision of reform orous and open debate could have
on December 18 1978. versity, said in a speech in October. President Xi Jinping in Beijing’s Great Hall of the People. Below, former leader closer to that originally articulated by helped to avoid.”
“Chinese intellectuals are giving voice “Emphasising a China model will lead Deng Xiaoping, credited with starting China’s economic rise — Fred Dufour/Getty Deng. But similar hopes were dashed at Additional reporting by Xinning Liu
to enduring disagreements about sub- to strengthened state-owned enterpri-
stantive policy matters, such as the bal- ses, expanded government power and
ance of the state and market in the econ- reliance on industrial policies, reversing
omy,” said Julian Gewirtz, a Harvard- the reform process. The economy will
based scholar and author of a book eventually descend into stagnation,” he
about the early years of Deng’s reforms. suggested.
The fundamental question at the heart Mr Zhang’s speech was posted online,
of this debate, he added, was whether only to be taken down by censors. Other
“China developed because of the per- liberal economists were last month pre-
sistent rule of the state in the marketis- vented from travelling to a Harvard
ing economy, or despite that?” forum about Chinese economic reform.
Mr Xi appears to believe the former — Even so, the debate has continued
that a unique “China model” character- over recent weeks in reform-anniver-
ised by a powerful party-state sary seminars held across Beijing’s uni-
has been the foundation of versity district. At one such event last
the country’s economic suc- week, Justin Yifu Lin, a Peking Univer-
cess over the past 40 years. sity professor and China model enthu-
Speaking at the October siast, advised African economists
2017 congress that marked present that “[in] a hostile envi-
the beginning of his ronment, it’s better to follow
second five-year term your own economic develop-
as party general sec- ment policies” rather than
retary, Mr Xi said western ones.
that China’s experi- But Xiaodong Zhu from
ence “offered a new the University of Toronto
option for coun- countered: “It’s dangerous
tries that want to for professors to admire

Brexit May resists growing

impetus for second referendum
GEORGE PARKER — LONDON option, many of the 75 Labour MPs who
backed it have instead swung their sup-
Theresa May warned yesterday of the port behind a second referendum. Some
“irreparable damage” that a second ref- Conservatives — although none so far in
erendum on Britain’s EU membership the cabinet — also support the idea.
would inflict on the country’s politics, as Labour has kept open “the option” of
an idea previously on the fringes of the a second referendum, maintaining that
Brexit debate moved to centre stage. the party could back such a vote if it
Announcing that MPs would vote on failed to eject Mrs May in a Commons
her proposed Brexit deal in the week of vote of no confidence in the govern-
January 14, the British prime minister ment. But Jeremy Corbyn has tried to
said a second referendum would “break keep the idea on the backburner. The
faith with the British people”. Labour leader, a longtime Eurosceptic,
knows a second referendum would split
Why is there growing momentum his party and infuriate its Leave-voting
behind a second referendum? supporters. Most Labour MPs’ constitu-
Mrs May’s decision last week to abort a encies voted Leave in 2016.
parliamentary vote on her Brexit deal So far there is no indication that such
has changed the debate at Westminster. an idea would command a Commons
MPs increasingly believe the plan is majority but opinion could change if it
dead in the water and are looking at a were seen as the only way forward.
range of alternative options.
Given that more than 100 Tory MPs What would be the question on the
voted to oust Mrs May in a confidence ballot paper?
vote in her leadership of the Conserva- This is one of the big practical problems
tive party, the opposition to her deal of a second vote. Some commentators
appears entrenched. EU leaders meet- suggest a second referendum might
ing in Brussels last week also expressed simply ask voters to choose between
doubts that it could be revived. Mrs May’s deal and no deal. But, given
that three quarters of MPs voted to stay
How could a second referendum arise? in the EU in the 2016 referendum, the
There is growing clamour in the cabinet Commons would almost certainly insist
to test alternative Brexit scenarios in an on Remain being on the ballot paper.
“indicative vote” in the House of Com- Ms Greening has proposed a three-
mons, to see if a Plan B could command way choice between Mrs May’s deal, no
a majority. But there is little evidence deal and Remain, with a preferential
that any Brexit proposition will fly. voting system to determine the out-
A no-deal exit might be backed by up come. The Institute for Government, a
to 100 Tory MPs, but there is little sup- think-tank, suggested the alternative of
port for it elsewhere in the 650-seat leg- a two-part referendum, but that would
islature. A “Norway-style” economic raise issues about sequencing.
partnership, in which the UK would The Electoral Commission, the body
remain closely integrated with the EU, charged with supervising votes in the
was rejected by 327 votes to 126 in a UK, has also made clear in past debates
Commons vote in June. that it is not enthusiastic about multi-
“A blocking group of MPs exists for question referendums.
every proposal — leaving us left with
only a vote of the British people in a sec- Would Brexit be delayed?
ond referendum,” wrote Justine Green- Almost certainly. It took 13 months to
ing, a former Tory cabinet minister. set up the 2016 referendum. Although
But Mrs May has made her opposition Liberal Democrat leader Vince Cable
to a second vote clear — and even if a claims legislation could be concluded
cross-party group of MPs demanded a “within a matter of weeks”, holding a
second vote, the government would still vote before March 29 seems impossible.
have to legislate for it. “Any Tory prime EU officials have indicated there
minister who tried to legislate for a sec- could be an extension of a few weeks of
ond referendum would be gone by tea- the Article 50 exit process from the bloc
time,” said Nick Boles, a Tory MP. “The to allow Britain to sort itself out.
only way to a second referendum would The European Court of Justice has
be through a general election and a also ruled that the UK could unilaterally
Labour government.” revoke the Article 50 notification, clear
confirmation that, if all else fails, Britain
Would parliament support it? could, in theory, still call Brexit off.
Since the June vote on the Norway Robert Shrimsley page 9
4 ★ FINANCIAL TIMES Tuesday 18 December 2018

INTERNATIONAL

Mueller investigation Khashoggi case

US charges Turkish associates of Flynn Riyadh hits

back at US
Two accused of meddling covertly influence US politicians and
public opinion against a Turkish citizen
was fired for lying about conversations
with a Russian official.
was elected, Mr Flynn published an arti-
cle in The Hill, a newspaper that focuses
dence supplied by Ankara was insuffi-
cient to put before a US court. The
Senate over
in spat over refusal to
extradite Erdogan critic
living in the United States”.
The indictment, which was unsealed
Mr Flynn in December pleaded guilty
to lying to the FBI about those conversa-
on Congress, describing Mr Gulen as a
“radical Islamist” and a “shady Islamic
indictment yesterday said the US justice
department had informed Ankara in
‘interference’
DEMETRI SEVASTOPULO — WASHINGTON
LAURA PITEL — ANKARA
yesterday, said Mr Rafiekian and Mr
Flynn — referred to as “Person A” —
formed a company that tried to use Mr
tions. Last week, Mr Mueller recom-
mended that he receive little or no
prison time when he is sentenced this
mullah residing in Pennsylvania”.
Mr Gulen, who has lived in self-im-
posed exile in the US since 1999, is Tur-
July 2016 that its request “had not yet
met the legal standards for extradition”
required under a US-Turkey treaty.
in Saudi affairs
Flynn’s national security experience to month because he had provided investi- key’s most wanted man. Recep Tayyip Mr Alptekin, who is believed to be in
The US has charged two Turkish former “delegitimize” Mr Gulen, as a Turkish gators looking into possible co-ordina- Erdogan, Turkish president, and the Turkey, did not immediately respond to SIMEON KERR — DUBAI
business associates of Michael Flynn, request to extradite him was “meeting tion between the Trump campaign and country’s opposition both accuse him of a request for comment. He has previ-
Saudi Arabia has fired back at its critics
the sacked White House national secu- resistance” from the justice depart- Russia with “substantial” help, as well as building a network of followers who ously admitted working with Mr Flynn
in Washington for their “interference”
rity adviser, with conducting an illegal ment. assistance in a separate unspecified infiltrated many arms of the Turkish but strenuously denied he was doing so
in its affairs after the US Senate blamed
lobbying campaign designed to pressure The indictment is the latest offshoot criminal probe. state. Turkey said he ordered these fol- on behalf of Turkey. He is accused of
the Saudi crown prince for the killing of
the US to extradite Fethullah Gulen, a of the Russia investigation being led by After his appointment as national lowers to lead a violent coup attempt in conspiracy, acting as an illegal foreign
journalist Jamal Khashoggi.
Turkish cleric whom Ankara claimed Robert Mueller, whose investigators security adviser, Mr Flynn also came 2016 that left 250 people dead. agent and lying to the FBI. He faces a
was the mastermind of an attempted have held at least 19 interviews with Mr under scrutiny for lobbying work he In the aftermath of the putsch, Mr maximum sentence of 35 years. A statement from Riyadh said that
coup in 2016. Flynn. The retired general joined the performed for Turkey during the presi- Erdogan has demanded the extradition Mr Rafiekian, who is charged with the Senate vote “was based on unsub-
The US accused Bijan Rafiekian and Trump campaign and served as national dential campaign without registering as of Mr Gulen, who has denied all involve- conspiracy and being an illegal foreign stantiated claims and allegations, and
Kamil Ekim Alptekin of “a conspiracy to security adviser for three weeks until he a foreign agent. On the day Mr Trump ment in the plot. But the US said the evi- agent, faces up to 15 years in prison. contained blatant interferences in the
kingdom’s internal affairs, undermining
the kingdom’s regional and interna-
tional role”.
In two votes last week the US Senate
Interview. Laya Joneydi blamed Crown Prince Mohammed bin
Salman for the murder of Khashoggi at

Female academic takes Iran sanctions battle to US the Saudi consulate in Istanbul in Octo-
ber and called for the US to end its sup-
port for the Saudi-led war in Yemen.
As tensions grow between the US and
Saudi Arabia, its closest Arab ally, Riy-
adh rejected accusations that “disre-
A rare woman in top ranks, spect its leadership” and emphasised
the oil-rich kingdom’s importance to the
vice-president for legal affairs energy market and fighting Islamist ter-
scored early win with ICJ case rorism.
The Senate resolutions were a rebuke
to President Donald Trump over his
NAJMEH BOZORGMEHR — TEHRAN
relationship with Prince Mohammed
In Iran’s hierarchical political system it and his backing for the war in Yemen,
is rare for an outsider to be granted a but were largely symbolic because the
senior position. That is why the Islamic House of Representatives is unlikely to
republic’s newest weapon in its battle take them up.
with US president Donald Trump is so Prince Mohammed’s erratic regional
unusual. policies have irked other western allies.
Laya Joneydi, a 50-year-old academic, UN-led peace talks in Sweden last
is a woman with no ties to conventional week reached a breakthrough, with
politicians and no personal stories from agreement on a ceasefire in the Yemeni
Iran’s revolutionary years. But as Iran’s port city of Hodeidah, an important
vice-president for legal affairs, she route for aid and goods to the impover-
has already secured a rare, if symbolic, ished state.
victory over the US on the global stage. Riyadh on Sunday said it was working
After the US administration withdrew towards a political solution and
from the 2015 nuclear agreement this regarded “the humanitarian situation in
year and re-imposed sanctions against Yemen a priority”.
Iran, Ms Joneydi, in co-operation with The Senate vote to condemn the
other ministries, filed a lawsuit against crown prince for the murder of
the US at the International Court of Khashoggi, a Washington Post column-
Justice — and won. ist who was critical of the kingdom’s
“What the US administration has rulers, contrasts with the careful
done to the Iranian people is illegitimate approach taken by the Trump adminis-
from a legal point of view and more ille- tration, which has rooted its regional
gitimate from a moral point of view,” she policy in close relations with the young
told the Financial Times in her first Laya Joneydi: “This has been an injustice to Iranian ager to study law at the University of person because in my position . . . we prince.
interview with a foreign media group. ‘It is the people, who see their economy and wel- Tehran, where she was the only female need to settle disputes impartially The CIA has reportedly provided an
Her rise is a result of mounting public ultimate fare weakened while even their access to among her peers at masters and PhD between various state organisations.” assessment that the crown prince was
pressure on Iran’s leaders to appoint satisfaction basic needs is hit,” said Ms Joneydi. levels. In 2002, she received a post-doc- Being a woman in a male-dominated responsible for Khashoggi’s murder.
women to top jobs, as an increase in the for me to see “The US knows that it cannot ignore toral research scholarship at Harvard. system brought more challenges, she “The US Senate sends the wrong mes-
number of female students at university today’s young the ICJ’s rulings. It may not be the per- She still teaches at the Tehran univer- said. But she has been joined by others sages to all those who want to cause a rift
has not translated into more women in and educated fect option [for Iran] but it is not useless. sity where she studied and said proudly in the top ranks. The head of Iran Air is a in Saudi-US relationship,” Riyadh said
senior official roles. generation push Indeed, I think it has been useful.” that most of her students are women. woman, as is the managing director of in its statement.
In the ICJ case, Ms Joneydi argued that for the country’s The ruling has helped in Iran’s efforts “This means growth. It is the ultimate the National Petrochemical Company, Turkish leaks of details of the grue-
the US re-imposition of sanctions vio- progress’ to capitalise on an EU decision to stick satisfaction for me to see today’s young and a new board member of the some murder have increased pressure
lated a 1955 Treaty of Amity between Kaveh Kazemi
with the nuclear accord. Without it, she and educated generation push for the ‘The US National Iranian Oil Company. on the crown prince, whose domestic
the two countries that encouraged suggested, European countries might country’s progress. I do not claim that I Beyond fighting sanctions, Ms Joneydi reform agenda and bid for regional lead-
closer economic relations. not have been willing to set up a sanc- represent them, but I belong to this class knows that has re-established the rights of religious ership has been jeopardised by interna-
On October 3, the court in The Hague tions-busting payments channel for of educated, opinionated people who it cannot minorities to be members of city coun- tional condemnation of the incident.
handed a victory to Tehran by ordering trade with Iran, which is due to be believe in consistent improvements.” cils and is working on a plan to increase Riyadh, which initially denied
Washington to ensure its sanctions did launched in the coming weeks. After President Hassan Rouhani was ignore the government transparency. involvement, has blamed Khashoggi’s
not hit certain forms of trade, including In addition, Ms Joneydi said, Tehran re-elected last year on a reform agenda, ICJ’s But like many educated, middle-class death on a rogue operation, arresting
humanitarian aid, food and medicine. was using the ICJ verdict in its talks with Ms Joneydi got a call from his office. She Iranians, she opposes any sudden policy about 20 suspects in its investigation.
The provisional ruling cannot, how- foreign companies and banks that are imagined it was something to do with a rulings. It changes that could lead to unrest. “This Turkey has called for the extradition
ever, be enforced and the US immedi- reviewing their ties with Iran. legal case, thanks to her expertise in may not be may be desired by those who impose of suspects involved in the killing, rais-
ately terminated the treaty, saying aid In a country where conservative ideo- international commercial arbitration. sanctions, but would put Iran at the risk ing doubts about Riyadh’s willingness to
was never a target of its sanctions. logues are vying with moderates for pri- Instead, it was a job offer. the perfect of turning into another Iraq, Syria or pursue justice.
The ICJ win was nonetheless hearten- macy, Ms Joneydi comes across as a non- “[I] ended up here by destiny. My life option [for Afghanistan,” she said. On Sunday, António Guterres, UN sec-
ing for Iran, where the economy has suf- partisan pragmatist committed to was dominated by my academic profes- “I want our 200 years of experience in retary-general, called for a “credible”
fered from sanctions that started to hit defending Iran’s sovereignty. She was sion as well as being a legal practitioner,” Iran] but it struggling for the rule of law to bear investigation into Khashoggi’s death.
oil exports last month and weakened born into a middle-class family in the she said. “I was never a politician and I is not desirable outcomes in a mature way, The Saudi statement rejected “any
the national currency by about 50 per town of Babol on the shores of the Cas- am still not linked to any political group. even if the process is difficult or slow,” attempts to take the case out of the path
cent against the dollar this year. pian Sea and moved to Tehran as a teen- I intentionally remain an independent useless’ she added. of justice in the kingdom”.

Presidential election Maritime rivalries

Kabila challenger faces bullets and tear gas in Congo campaign India agrees Maldives aid deal
TOM WILSON — LUBUMBASHI criss-crossing Congo in a private aircraft Congo’s large government bureaucracy But Kinshasa, a sprawling city of 11m AMY KAZMIN AND JYOTSNA SINGH friendship and cultural affinity. India is
NEW DELHI
for the past two weeks. But even with in every town and village. His campaign people, is a world away from the small not only our closest friend, it is also one
When one of the Democratic Republic
significant financial resources at his dis- team, which is 400-strong, includes Mr towns and rural villages where most of India has agreed to provide $1.4bn in of our largest trading partners.”
of Congo’s leading opposition presiden-
posal, his campaign has faced huge Kabila’s brother and sister and sitting Congo’s 80m population live and voters financial assistance to the Maldives in The financial aid will come in the
tial candidates campaigned in the min-
obstacles. cabinet ministers. are more easily bought and intimidated. an effort to reverse its waning influence form of budgetary support, concession-
ing town of Lubumbashi last week,
The military prevented his plane Such is the dominance of Mr Sha- On Thursday, when Felix Tshisekedi, over the strategically significant ary loans and a currency swap. But ana-
security forces reportedly sprayed his
from landing in the town of Kindu, a dary’s campaign that Noel Tshiani, the another opposition candidate, arrived archipelago nation. lysts have warned that the Maldives’
convoy with live ammunition and tear
stronghold of President Kabila’s chosen lesser-known opposition candidate, a in the remote diamond-mining town of precarious financial position means
gas, leaving at least three people dead.
successor, Mr Fayulu said. Mbuji Mayi — an opposition stronghold The offer came as Narendra Modi, that it will remain somewhat dependent
Martin Fayulu was heading from the air- Even if the vote is free and fair — — the provincial governor deployed sol- Indian prime minister, rolled out the red on China, to which it is heavily indebted.
port towards the city centre surrounded which is considered unlikely, given the Martin Fayulu diers and police officers to keep people carpet for Ibrahim Mohamed Solih, the Beijing has in recent years built a 2km
fears the contest
by thousands of supporters, when the electoral commission’s decision to roll will be decided by away, leading to the reported death of a Maldivian president, who is on his first bridge from the Maldives’ main airport
clash took place. The next morning, the out untested electronic voting machines the power of the 16-year-old boy, according to the UN. overseas visit since his election victory to Malé, its capital, a journey that could
shells of burnt-out vehicles littered the for the first time — Congo’s political sys- state and the In a statement on Friday, Michelle three months ago. previously be made only by boat. It has
streets and torn campaign posters of the tem makes democracy difficult. ruling party Bachelet, UN High Commissioner for Mr Solih stunned political observers also forged a free trade deal and taken
ruling party flapped in the wind. Presidential candidates pay $100,000 Human Rights, said that she was in September when he defeated Abdulla long-term leases on several small Maldi-
“First we felt the tear gas, and then to register, and campaigns cost millions. former official at the World Bank, said “deeply worried” about the Congolese Yameen, who as president had grown vian islands.
they fired shots,” Mr Fayulu told the The country is two-thirds the size of he cannot get a single billboard space in state’s reported use of violence, includ- increasingly hostile to India and forged But New Delhi was furious in August
Financial Times in an interview in western Europe, roads are poor, rail vir- the capital city. ing live ammunition, against opposition closer ties with China. 2017, when Mr Yameen’s government
Lubumbashi. “How can we continue tually non-existent and aviation costly. But away from the presidential race, rallies. “Just days ahead of crucial elec- The Maldives is one of several Indian permitted three Chinese warships to
campaigning in this atmosphere?” For a presidential candidate to visit even some candidates are more optimistic tions in the DRC, it is essential that the Ocean nations, including Sri Lanka and dock at a Maldivian port, raising con-
Congo’s elections next Sunday are set a handful of constituencies during the that Congo’s democracy is deepening in authorities ensure that the rights to Mauritius, where India is vying with cerns that Beijing could use the archi-
to be historic — the country’s first transi- four-week campaign period, a private other ways. freedom of expression and peaceful China for influence as they seek to pelago as a base for surveillance of
tion of power by the ballot box as Presi- plane is a base-level requirement. “The urban youth today, who are assembly are fully protected,” she said. entrench their maritime power. India’s coastal military installations.
dent Joseph Kabila steps down after 17 Then there is the entrenched power of active in the social networks, need For Mr Fayulu, the UN’s words are too Since his victory, Mr Solih has repeat- The Maldives’ northernmost tip is
years in office. But Mr Fayulu’s experi- the state. The face of Emmanuel Sha- responses, they need to be convinced, little too late. The ruling party will do edly expressed his desire to rebalance 70 nautical miles from India.
ence has raised fears the exercise will be dary, the ruling party’s candidate, is they don’t need T-shirts or drinks, they everything it can to hold on to power, the Maldives’ foreign relations, and In their joint statement yesterday,
far from democratic. omnipresent on posters in Kinshasa and need to understand what proposals the including manipulating the result, he restore its close ties with India. India and the Maldives agreed to remain
Backed by Moise Katumbi and Jean- Lubumbashi in the south-east, the politicians have to offer them,” said said. Mr Solih told a business forum in New sensitive to each others’ security con-
Pierre Bemba, the wealthy opposition country’s two largest cities. Patrick Muyaya, a member of a party “Kabila is relaxing, he’s calm, every- Delhi yesterday ahead of a meeting with cerns, and not permit the “respective
leaders who have been disqualified He flies on the ruling party’s aircraft allied to the ruling coalition running for thing is done and the international com- Mr Modi that “India is our closest neigh- territories to be used for any activity
from standing, Mr Fayulu has been and is welcomed by officials from a parliamentary seat in the capital. munity has sat back,” he added. bour and our people are bound by ties of inimical to the other”.
Tuesday 18 December 2018 FINANCIAL TIMES 5
6 ★ FINANCIAL TIMES Tuesday 18 December 2018

ARTS

Joyful Paul gets back with Ringo

charming ballet — Snow White,
OPERA Cinderella, Rapunzel, Rumpel-
stiltskin, and more.
Hänsel und Gretel After it has left the “Witch’s
Royal Opera House, London Ride” to go for nothing, one won-
aaaee ders what the production has in
store for the witch herself. Out of
Richard Fairman the murk appears, incongruously,
a Gothic mansion with blood trick-
Ballet has long taken over the ing down the windows straight out
Christmas season. Fairytale of Psycho, and it houses a witch
favourites such as Tchaikovsky’s who is not Norman Bates, but a
Nutcracker and Sleeping Beauty fill roly-poly Mrs Doubtfire, sung by
the theatre with family audiences. Gerhard Siegel, a tenor in drag.
There is little in the opera reper- None of this adds up, and the tone
toire to compare. shifts again at the denouement,
That leaves one exception. From when the Witch falls into a vat of
the German romantic tradition chocolate and is revealed grue-
comes Humperdinck’s Hänsel und somely struggling in the gloop.
Gretel. When the Royal Opera’s Hanna Hipp sings a nicely boy-
recently installed director of ish Hänsel and Jennifer Davis,
opera, Oliver Mears, wanted to fresh from her Elsa in Lohengrin,
attract families to opera as well as shines brightly as big sister Gretel.
ballet at Christmas, it was the obvi- Michaela Schuster brings an
ous choice. appropriately Wagnerian scale to
In planning this new produc- the Mother and Eddie Wade
tion, Mears was clear that he did stepped in at the eleventh hour
not want it “set in a concentration convincingly as Father. Haegee
camp”. Antony McDonald’s stag- Lee, brilliantly made up, sings the
ing, shared with San Francisco old Sandman, Christina Gansch
Opera, stays four-square with the the gleaming Dew Fairy. It might
fairytale of old. It offers a few ideas seem strange having a children’s
of its own, but the result tends to show sung in German, but so little
oscillate between what is novel but of the German text was audible,
off-key, and what is predictable. especially before the interval, that
For the first hour or so one waits it hardly mattered.
with increasing impatience for any Humperdinck’s music is satu-
Yule be older too: Paul McCartney is flanked by Ringo Starr and Ronnie Wood at the O2 Arena — MPL Communications/MJ Kim sign of enchantment or lurking rated in echoes of Wagner, from
threat, or even individuality, until Die Meistersinger in the overture to
same span that separated the album as what you do with them. McCartney of “Wonderful Christmastime”. But then in the dream sequence as the chil- Siegfried in the witch’s scene, and
POP from the end of the first world war — was not merely going through the came a sublime moment of sentimental- dren settle down to sleep, McDon- the conductor, Sebastian Weigle,
McCartney’s indefatigability, at 76, has motions as he led us on this well- ity when an extra drum kit was wheeled ald at last opens his magic box of drew playing that glowed with
Paul McCartney become a less easily caricatured quality, rehearsed curation of his storied past. on stage and everyone in the venue held tricks. There are no guardian Germanic warmth. After a season
O2 Arena, London not so lightly dismissed. He was backed by his usual punchy their breath hoping for . . . yes! Ringo angels (yes, London has seen dominated so far by cycles of the
aaaae His O2 Arena show ended the first leg live band: guitarists Rusty Anderson Starr, whose arrival sparked mass angels many years ago at Sadler’s Ring, here is a pleasing, but unex-
of his characteristically named Freshen and Brian Ray, keyboardist and percus- excitement, an echo of Beatlemania. Wells Theatre). Instead, other ceptional Wagner-style pendant.
Ludovic Hunter-Tilney Up tour; the second leg will begin in sionist Paul Wickens and drummer Abe The two remaining Beatles were also characters from tales collected by
South America in March. The set list Laboriel Jr. McCartney variously played joined by The Rolling Stones’ Ronnie the Brothers Grimm dance a To December 29, roh.org.uk
There were gestures of goodwill comprised 40 songs lasting three hours, bass, electric and acoustic guitars, man- Wood. The song they proceeded to play
throughout Paul McCartney’s set at the an impressive display of stamina. dolin, ukulele and piano. His yowling was “Get Back”, decorated by Stonesy Enter
O2 Arena, above and beyond the The outlines were familiar from had a softer quality than in younger guitar licks from Wood, with Starr grin- Sandman:
demands of the festive season — thumbs McCartney’s previous tours. The super- days, his voice hoarse around the edges. ning as he performed a little drum fill. from left,
up, cheery salutes, blown kisses. “You’re fan in the audience holding a sign saying A solo version of “Blackbird” was sung In the past, to iconoclastic eyes, this Jennifer
all pizzas and fairy tales,” as his old spar- he had seen 121 shows must have wit- in the careful manner of a vocalist who might have looked like rock chumoc- Davis, Haegee
ring partner John Lennon once told him. nessed the same routines about Jimi can no longer fly as easily as before. It racy, the kind of thing punk was meant Lee and
(“I almost made that an album title,” Hendrix and George Harrison repeat- gave the song, one of his greatest, an to stamp out. But in a show incorporat- Hanna Hipp
McCartney said in 1986.) edly — the former commemorated with extra degree of pathos. ing tributes to McCartney’s dead com- Clive Barda
In the past, his relentless good cheer a blaze of guitars during a Hendrix- Elsewhere, signs of age were held at rades, the likes of Lennon, Harrison and
had a pre-rock and roll, variety-show styled version of Wings’ “Let Me Roll It”, bay with jolly jaunts through Beatles George Martin, it was joyful and life-
flavour, the cheese to Lennon’s chalk, the latter with a ukulele-led version of classics, bold renditions of big 1970s affirming, a fairy tale’s happy ending.
“Mr Thumbs Aloft” in the nickname of the Harrison-penned “Something”. rockers from his Wings days and lively “I don’t know about you,” Starr said
the British music press. But as The There is a formulaic quality to McCa- tracks from his new album Egypt Station. afterwards, “but it was a thrill for me.”
Beatles move further into history — it is rtney’s concerts. But the problem with There was a dollop of Yuletide schmaltz
50 years since The White Album, the formulas is not so much their existence with a children’s choir-assisted version paulmccartney.com

When faith and identity collide

Jekesai acquires real faith and is to an rate turns of phrase. They are comple-
T H E AT R E extent liberated by her new life. But she mented by a range of characters all
is torn in two by Chilford’s stipulation caught up in the turbulence, among
The Convert that she may not attend an important them Ivanno Jeremiah as Chilford’s
Young Vic, London ritual for her deceased father. We see more worldly friend Chancellor; Pamela
aaaae too in Chilford the agonising internal Nomvete as the housekeeper, dismissed
conflict of a man who has given up eve- by Chilford for retaining a devotion to
Sarah Hemming rything for a new life, but is now viewed her religion as deep as his own; and Luy-
as a traitor by a local population rebel- anda Unati Lewis-Nyawo — excellent as
Where do you belong? It’s a question ling against the colonialists. Chancellor’s sharply intelligent fiancée.
that just about everyone has to face in The two are outstandingly well played Naomi Dawson’s gauze-walled set
Danai Gurira’s The Convert. And the fur- by Letitia Wright and Paapa Essiedu. conveys the impossible halfway house
ther we go, the more complex that ques- Wright brings a moving, burning inten- in which these characters are trapped,
tion becomes. It’s a terrific play — a rich, sity to Jekesai, her quick, neat move- although it sometimes obscures the
thoughtful, carefully crafted piece — ments suggesting her character’s open- sightlines. But this is an electrifying
first seen in the UK at London’s tiny Gate ness and alacrity of spirit and mind. staging of a moving play about faith,
Theatre in 2017, and revived here in Ola Essiedu’s Chilford, meanwhile, is identity and colonialism.
Ince’s superbly acted production. beautifully pitched: comic, but not
The setting is late 19th-century south- ridiculous, in his ornate, often inaccu- To January 26, youngvic.org
ern Africa (now Zimbabwe) under Brit-
ish rule and the home of local would-be Superbly
priest, Chilford. With his trim suit and acted:
his fastidious devotion to order, Chilford Ivanno
is a fully paid-up convert, not just to Jeremiah
Christianity but to Victorian gentility. in ‘The
So when his housekeeper’s young niece, Convert’
Jekesai, arrives on his doorstep, fleeing a Marc Brenner
forced marriage and willing to adopt
Christianity in exchange for sanctuary,
he is thrilled. All the more so when Jeke-
sai, whom he renames Ester, proves a
quick learner and a powerful orator: a
protégée ready to help him spread the
word. But personal and political crises
are looming that will test Chilford, Jeke-
sai and all of those around them.
It’s a meaty, tightly structured play,
full of rich, finely drawn characters.
Gurira develops their dilemmas subtly:

in her own grown-up self triumphing in broad agreement on, say, leg heights in
DA N C E the Sugar Plum Fairy pas de deux. arabesque isn’t too much to ask?
Unfortunately Eagling is not a natural There are moments of magic in the
The Nutcracker storyteller. His Act One party scene is staging. Having the mice gas the toy sol-
Coliseum, London hopelessly crowded with incident. Clara diers with stinky cheese catapulted
aaaee is frequently upstaged by a big sister and from a mousetrap is inspired. The Act
her three rival suitors who caper about One getaway to Confituremburg by
Louise Levene incomprehensibly during an impene- Montgolfier balloon is heart-catching.
trable puppet theatre sequence. Hyper- James Streeter was a zesty, very clean-
The band play Tchaikovsky and the active party guests distract us from the footed Mouse King, the underused
whole thing looks like a giant Christmas main event — Michael Coleman’s bum- Katja Khaniukova sparkled through her
card. The Yuletide-treat crowd bling, honeyroast grandpapa needs an fouettés in the Chinese dance and Dan-
demands little more from its Nutcrack- urgent review of his medication. iel McCormick gave a showstopping
ers and, once again, the London Coli- All Nutcrackers save the best dancing account of the Spanish pas de trois, part-
seum is selling out very nicely for Eng- for the second half but even here Eagling nering a Kitri-ish Crystal Costa. Rina
lish National Ballet’s annual posh panto. seldom knows when to leave well alone. Kanehara and Jeffrey Cirio were not
The current production, ENB’s 10th, He makes a very nice job of the Snow- entirely at home with the tricksier pair-
dates from 2010 and was made by then flake ballet blanc with a lot of rippling work of the grand pas de deux but both
director Wayne Eagling and designed by waves in canon to match the rising shone in their solo variations.
Peter Farmer. The scenario is broadly scales in the score, but Eagling’s more- An uneven but intermittently enjoya-
traditional: little Clara Stahlbaum, over- is-more philosophy continues to litter ble evening. Take the kids, take the
excited by her parents’ Christmas party, the stage with mousy business. Some of mother-in-law — but maybe take a
re-imagines its guests, her toys and a last Thursday’s Act Two ensembles hip flask . . .
recent rodent infestation in a long, were rather ragged. Unison should
action-packed dream which culminates never be an end in itself but surely a To December 30, ballet.org.uk
Tuesday 18 December 2018 ★ FINANCIAL TIMES 7

FT BIG READ. TECHNOLOGY

In a sign of anxiety about Masayoshi Son’s tech visions, SoftBank’s shares trade at a substantial discount
to the value of its investments. He hopes an IPO of its Japanese mobile business will change attitudes.
By Jonathan Guthrie and Sujeet Indap

T
he “singularity” is the The new deal terms betray the diver-
theoretical point at which The gap between a tech pioneer’s promises and market reality gence in the fortunes of the two part-
machines can out-think ners. T-Mobile is now taking over
humans and technological Sprint. SoftBank would go from owning
change becomes unstoppa- 83 per cent of Sprint to just 27 per cent of
ble. It justifies breakneck investment in the new T-Mobile.
businesses with disruptive potential, The chances of US competition regu-
according to Masayoshi Son, founder lators approving the all-stock deal this
and chief executive of Japanese tech time are put at no better than 50:50 by
group SoftBank. analysts. If the deal goes through, it
“This is the biggest revolution in would reduce pressure on Sprint’s bal-
human history,” he told analysts in ance sheet. The estimated annual free
August. “Artificial intelligence will cash flow of the combined business
change or will redefine all the indus- would be almost $12bn. A key measure
tries . . . the winners in AI will be win- of indebtedness — the ratio of net debt to
ners in the future.” earnings before interest, depreciation
For the moment, the real singularity and amortisation — would be less than
is Mr Son. As an iconoclast from consen- three times at the new T-Mobile.
sual Japan, he embodies big contradic- The takeover would also lighten
tions. Fans see him as a tech investment SoftBank’s bloated net debts to the tune
genius. Some traditionally-minded of $32bn. Accounting rules would per-
Tokyo business people dismiss him as a mit the group to “deconsolidate” these,
reckless chancer. which means they would no longer
SoftBank hopes to undercut hostility appear on SoftBank’s balance sheet.
with one of the largest-ever initial public SoftBank already tends to discount
offerings. This month the group is float- Sprint’s debts when challenged on the
ing a Japanese mobile phone operation scale of its liabilities, as do some bullish
with a mooted equity value of more than analysts. This is just one of the ways it
$60bn. Executives believe this will reas- downplays borrowings that surpass
sure investors about the debts carried those of many developing economies.
by the business and trigger a re-rating.
SoftBank is the world’s largest focused Red flags to a bear
tech investor. Yet for all Mr Son’s futur- The justification is that Sprint’s debts
istic talk, it sometimes buys relatively are “non-recourse”, which means Soft-
mature businesses. Mr Son and his fans Bank is not liable for them if its subsidi-
believe it takes no unhedged risks. Crit- ary defaults. SoftBank is likely to apply
ics decry it in the terms Warren Buffett the same logic to the mobile phone
once reserved for derivatives: as a finan- unit’s $30bn of net borrowings after the
cial weapon of mass destruction. Soft- IPO. This treatment does wonders for
Bank’s credibility problem is reflected that important net debt-to-ebitda met-
in a big gap between the value of its ric. The ratio falls from the official level
investments and the price of its shares. of about five times, which looks steep, to
“They are the buyer of first resort,” just over three times, which is a lot more
says one Asia fund manager, reflecting comfortable.
on the group’s fondness for snapping up Incongruously, the group is happy to
include the earnings of subsidiaries and
‘Son is extremely bullish affiliates in its own profits. All the earn-
ings of Sprint and Yahoo Japan go into
and rarely mentions the pot. SoftBank owns less than half of
the quoted internet group’s shares, but
negatives — investors this is deemed to give it control.
are wary of what is not Even a quarter of Alibaba’s profits are
included, on the arguable basis that
being talked about’ SoftBank has a significant influence on
the policies of the Chinese group.
shares in well-hyped tech plays, such as SoftBank intends to reduce share price ... and unlock more value in the group ... ... but a fall in tech and and telecoms stocks This is permissible under Japanese
Uber and WeWork. “They always want discount with Japan Mobile IPO... Discount to value of SoftBank investments (%) would reduce asset cover of debts accounting rules. But the inclusions
to supersize their investments. They $bn $bn Forecast market worth of SoftBank** undercut the assumption of some inves-
Miscellaneous Pre-IPO Post-IPO base case
have an issue finding companies willing stakes tors that ebitda is a useful measure of
Value of SoftBank investments
to take the amounts of money they want 250 Delta
SoftBank’s cash earnings. Few of the
to hand out.” 60 Net debt***
Yahoo Japan
The flotation will bring greater clarity
to a tangled structure that reflects Mr
200 Sprint 300 It is an article of faith at
Arm 50
Son’s restless quest for innovation
150 Vision Fund 250 SoftBank — and among
rather than any conventional corporate
strategy. But an FT analysis suggests the 40 200 many analysts — that
move could heighten risks for Soft-
Bank’s shareholders and lenders rather
100 SoftBank
Japanese 30 150
borrowings are offset by
than dampen it. Dangers are already 50
mobile
100
valuable investments
understated by the group’s optimistic Alibaba 20
account of its own finances. stake companies in SoftBank’s portfolio pay
0 50
Current Forecast market Value of meaningful dividends. Very little of the
Current valuation SoftBank
10 group’s reported net income of $9.8bn in
market worth after 0
The technological evangelism of Mr Son worth of Japan mobile investments Post-IPO tech Post-IPO tech 2017-18 passed through its hands in the
divides opinion. “He is a visionary,” says SoftBank IPO* 0 stocks gain 50% stocks lose 50% form of hard cash.
Dan Baker, an analyst at Morningstar *Assumes market attributes full value to cash raised and that Equity Enterprise value **Assumes 1.4 times correlation ***Current consolidated net debt Strip out the forecast earnings, as well
discount for mobile unit closes from over 60 per cent to zero Sources: S&P Global, FT research
who rates the company a buy. “He is as the borrowings, of SoftBank’s big
extremely bullish and rarely mentions investments and net debt to ebitda soars
negatives. Investors are wary of what is Paradoxically, the higher the number to trade. Second, Mr Son is likely to sink to over 10 times. Even a US leveraged
not being talked about.”
These include “complexity, opacity
and leverage”, according to Chris Hoare
in depth SoftBank puts on these stakes the
greater the dismaying share price dis-
count. No wonder Mr Son is trying to
at least half the IPO proceeds into new
tech investments, where their value will
once again become opaque.
buyout specialist would regard this as
steep. Strip out the earnings of the
mobile phone unit too, to reflect the
of New Street Research. Even compiling reduce this. We value SoftBank’s invest- The third caveat is the most signifi- impending IPO, and SoftBank would be

SoftBank’s
a sum-of-the-parts valuation — a simple ments at a grand total of $235bn, while cant. The mobile operator is coming to making a loss in some scenarios.
exercise for most conglomerates — is its market worth is just $85bn. The the stock market when a telecoms price In fairness, the group weaves no cloak
tricky for SoftBank. But the discount difference is partly explained by war in Japan is threatening to erupt. of mystery around its accounting poli-
between the impressive value of the SoftBank’s substantial net debts but the SoftBank Group’s racy pricing of cies or its attitudes to risk. SoftBank
group’s investments and its lowly protection these receive is more fragile shares in its subsidiary is only justifiable would like to be better understood. It is

credibility
Tokyo-listed shares is over 60 per cent, than fans acknowledge. if fat dividends from the latter are sus- an article of faith at the company — and
according to FT analysis of S&P Global tainable. The mobile operator should be among many debt and equity analysts —
data. Phone IPO able to keep a pledge to pay out 85 per that borrowings are comfortably offset
The chasm is hardly flattering for Mr The flotation of the Japanese mobile cent of net income. But that will count by valuable investments, particularly
Son. It implies his investment skills — or business is the first step in a plan to lift for little if net income itself is tumbling. the stake in Alibaba. Mr Son is wont to

problem
a perceived lack of them — have a market capitalisation. It works bril- The problem would be more acute for joke that “SoftBank has no net debt”.
negative impact equivalent to $148bn. liantly on paper, inspiring Bernstein SoftBank Group than the consequent That share price discount also covers
The boss of a quoted private equity analyst Chris Lane to describe it as reduction in the value of its sharehold- a lot of downside in advance, leaving
group in the US or UK could be fired for “alchemy”. Transmuting base metal ing in the phone unit. SoftBank is heav- plenty of potential for capital gains. Mr
a discount as big as this. into gold may be harder in practice. ily dependent on cash flows from Japa- Hoare says: “You are buying the shares
One part of the calculation involves In the eyes of most Japanese consum- nese mobile phone charges to service its at 60 cents on the dollar, and that dollar
nothing harder than totting up the value ers, SoftBank is a mobile phone com- $130bn net debt mountain. could double in value.”
of stakes in listed companies such as pany with a newsworthy entrepreneur SoftBank shares are highly sensitive
Yahoo Japan and Sprint, a US telecoms attached. The household name, com- Sprint challenge to moves in tech stocks. Even privately
business. Another part requires bold bined with fat dividends, should lure About a quarter of that debt is the result held businesses such as Uber are some-
assumptions. Lex followed the lead of retail investors. That has emboldened of a sally into US telecoms. In 2012, times valued in relation to these. If long-
many analysts in knocking 30 per cent SoftBank Group and its legions of bank- SoftBank spent $20bn to buy 70 per cent term past performance is any guide, a
off the $100bn market value of a stake in ers to attach an aggressive float price to of the shares of Sprint. Mr Son’s plan was three-fifths rise in new economy stocks
Chinese ecommerce group Alibaba — the unit. At ¥1,500 ($13.20) per share, to create a telecoms juggernaut to chal- could lift SoftBank’s shares over four-
SoftBank’s key asset — to allow for tax the telecom company would have an lenge AT&T and Verizon. He hoped to fifths. That troubling discount would
on any sale. We assumed Arm, a chip equity value of $64bn. merge Sprint with T-Mobile. But an shrink significantly.
designer, is worth the full $32bn Soft- The sale of a 37 per cent stake for exercise in empire building became a The corollary is that if tech and tele-
Bank shelled out for it. $23.3bn should hopefully increase Soft- lesson in humility. com stocks fell by just under a half, it
Deeper controversy bedevils Soft- Bank’s market worth by the same Trust busters blocked the merger. would theoretically cut the value of Soft-
Bank’s $97bn Vision Fund. Saudi Ara- amount. An optimist would expect the Subsequent events have ominous paral- Bank’s investments to below that of its
bia, its largest backer, lost much of its shareholding in the mobile operator lels with the Japanese telecoms industry consolidated debt. The group’s illiquid
cachet as an investment partner after its retained by SoftBank to be priced into today. T-Mobile simplified and lowered tech stakes would become hard to sell in
agents murdered journalist Jamal its market worth in a similar way. mobile phone pricing. Tens of millions a much smaller rout.
Khashoggi in Turkey in October. Some The gap between the parent’s implicit of subscribers defected from AT&T, Bulls believe in Mr Son’s singularity as
analysts fear Silicon Valley start-ups will and market values should narrow as a Verizon, and Sprint. T-Mobile shares a tech visionary, as exemplified by his
now spurn Vision Fund financing on result. This contraction would be leapt by 120 per cent in the three years inspired purchase of a stake in Alibaba
ethical grounds. Keeping track of Soft- helped by a change in stock analysts to the end of 2017. In that time, Sprint’s when it was an obscure start-up. Bears
Bank’s contribution to the fund is a covering SoftBank from earnings- more volatile stock rose just 42 per cent. shy away from SoftBank’s key person
more prosaic difficulty. Lex went with obsessed Japanese telecoms specialists Sprint’s debt of over $37bn prompted risk, its impulsive rolls of the dice and
the company’s most recent official to asset management analysts, some of fears of bankruptcy. big debts. They worry that another defi-
valuation of $35.8bn, implying a jump of them based in the tech-friendly US. The advent of a more business- nition of a singularity would apply to
almost $8bn in a few months, though There are three caveats. First, the re- friendly era in the US under President SoftBank in a market rout: a black hole
the real value of the shares is in the eye SoftBank has bought stakes in many high-profile tech companies. Its total rating of the retained stake is conjec- Donald Trump encouraged Sprint and in space, sucking in and crushing every-
of the beholder. investments are valued at $235bn, but its market worth is $85bn — FT montage tural, until shares in the phone unit start T-Mobile to resurrect their merger plan. thing in its path. They are right to do so.
8 ★ FINANCIAL TIMES Tuesday 18 December 2018

Letters
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Corrections: [email protected]
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Central banks must be

Belmond founder deserves a place in its history able to counterbalance
short-term fiscal policies
The announcement, and your own years Sherwood flew around the world looked set to explode, ran luxury
otherwise excellent report (December in search of iconic rundown hotels railways across Asia and when Peru In this day and age, with central bank
15), on the $3.2bn LVMH takeover of which could be restored to their former decided to sell its railways, Sherwood autonomy under attack in many
the Belmond group made no reference grandeur under the OrientExpress bought them and the Monasterio and countries, it’s hard to understand the
to its founder, Jim Sherwood, who logo. He bought the Villa San Michele, Machu Picchu hotels which came with reasoning behind Lord Skidelsky’s
began it in 1976 when he bought the outside Florence, the Hotel Splendido them. letter (December 12) that “the
Cipriani Hotel in Venice for £900,000 in Portofino, the Copacabana Palace in A gourmet himself, he started experiment of independent central
TUESDAY 18 DECEMBER 2018 from the Guinness family. He then Rio, the Timeo in Sicily, Reid’s in Harry’s Bar in London (in partnership banks has to be brought to an end”.
bought what remained of the legendary Madeira, Charleston Place in North with Mark Birley) and bought Le While the co-ordination of fiscal and
Orient-Express train, arguably the Carolina and many more. Manoir aux Quat’Saisons in monetary policy under the government
most comfortable and romantic means He was prepared to take risks when Oxfordshire, and 21 Club in New York. sounds sensible, the reality is that
of long-distance travel ever invented, more cautious hotel groups stood back: And there were many more. government fiscal policies are

Washington’s scrambled with the idea of transporting well-

heeled passengers from London and
Paris to his hotel in Venice.
he gambled on a peaceful end to
apartheid in South Africa and bought
the Mount Nelson Hotel in Cape Town
Belmond’s new management, who
inherited all but a handful of the
group’s 37 hotels, have largely written
frequently determined by short-term
political needs. Often the need to
address domestic economic conditions

approach to Africa That took five years and cost $30m,

but provided the name and style for
what became a major international
for a song. He went into Russia before
the Iron Curtain came down and
picked up the Grand Hotel Europe in St
him out of the company’s history,
which is a shame. LVMH’s Bernard
Arnault is buying Sherwood’s creation,
and/or external balance of payments
issues is disregarded. Surely, an
independent central bank is required
company, Orient-Express Hotels (it Petersburg, arguably the best hotel in not theirs. to warn its government of such risks
The Hobbesian view of the continent belongs to a bygone era only became Belmond in 2014, after Russia today. He put riverboats on the Ivan Fallon and, should its advice be rejected,
Sherwood had left). For more than 30 Irrawaddy when Burmah (Myanmar) Cape Town, South Africa adjust monetary policy accordingly.
The Trump administration has notably absent from US-Africa policy. Does central bank failure to prevent
unveiled what John Bolton, the This has increasingly focused on com- the 2008 crisis lead to the conclusion
national security adviser, has billed as bating militant Islamists and terror- Comments on the younger be even worse: it would be the that central bank independence should
a “new” Africa strategy for the US. On ism, at the expense of a more multi-fac- equivalent of a doctor offering a patient be eliminated? I doubt it. Before the
the commercial front, there is indeed eted approach. de Botton were misplaced a choice between life and assisted 2008 crisis the notion of light
some fresh thinking. But much of what Mr Bolton is wrong to see China’s role As much as I often enjoy Lex’s familiar suicide, and assisted suicide is still monetary regulation permeated
Mr Bolton says has emerged from a on the continent as uniquely negative. and slightly snarky tone, I am taken illegal in this country. governments even more than central
detailed inter-agency debate about While Washington has been otherwise aback at the personal and misguided No, the time has come for parliament banks. More recently, the current
America’s future engagement with the occupied, Beijing has adopted a long- tenor of “GAM: de Botton fishing” to reassert its sovereignty, and legislate Indian government has effectively
continent, seems to belong in the past. term view of Africa’s potential, marry- (December 14), directed at Alain de for the course it knows to be in the prevented its central bank from
If his speech on Friday is the guide, ing its own quest for resources and new Botton, the son of the late founder of nation’s best interests: to remain launching painful but necessary
Washington’s view of Africa is stuck markets to Africa’s need for infrastruc- GAM. Certainly a timely analysis of the in the EU. financial reforms, underscoring once
somewhere between the 19th century ture development and fast money. travails of GAM is appropriate, and Roger Garside again the need for central bank
scramble and the cold war, when the Moscow, like Washington, is arriving Lex’s first few paragraphs do this well. London SW16, UK independence.
continent played proxy for superpower late to the party. But when the commentary drifts off The US system of checks and
rivalry. Mr Bolton depicts US relations Mr Bolton is wrong on another front: into a snide critique of the founder’s Simply show why we’re all balances adds to this same need.
with Africa as a geostrategic board past development aid, which he dis- son, the writer and public intellectual, Whenever one political party controls
game in which Africans have less misses as “aid without effect” and a it loses its sense of fairness and better off remaining in EU Congress while the other controls the
agency than a pawn. Whatever “preda- waste of US taxpayers’ money. That is objectivity. Justine Greening’s view (“Parliament presidency, attempts to formulate
tory” moves by Chinese and Russian not true of the health initiatives Gilbert de Botton died 18 years ago. must vote on Brexit now — and be fiscal policy become hamstrung.
policymakers may be going on, he launched by George W Bush, the previ- His son, as far as I can discover, does ready for a second referendum”, Imagine the consequences if the
somehow finds America to be the prin- ous Republican president, and which not work for the company. What December 17) that rolling back Brexit Federal Reserve had lacked the
cipal victim. saved countless lives. Moreover, the possible connection is there between will require people having more authority to lower interest rates
“Great power competitors, namely benefits — in terms of exerting stronger the writer and the financial travails of opportunities and a greater stake in dramatically between 2010 and 2016.
China and Russia, are rapidly expand- US influence — of the stricter aid cond- the dead father’s former company? society is much nearer the mark than guilty as other business observers in Monetary policy would have been
ing their financial and political influ- itionality he recommends have been Using the son’s writings on philosophy Jeff Colegrave’s abstruse argument neglecting to mention the co-operative stymied, leading to a far deeper
ence across Africa. They are deliber- diluted by China’s willingness to pro- and psychology as a counterpoint to (Letters, December 17) that addressing as an alternative organisational model recession possibly approaching the
ately and aggressively targeting their vide billions of dollars in investment, the challenges faced by the leadership the lack of democratic political in a capitalist society. Great Depression of the 1930s.
investments in the region to gain a free of politicised conditions. of the company is to basely implicate architecture in the EU will be the key Co-operative businesses by definition Even during the past two years of
competitive advantage over the United If there is a positive to draw, it is that some connection. issue for Remainers to confront in a have first and foremost a social single-party control of Congress and
States,” Mr Bolton claims. Washington is waking up to the need to The ad hominem (and ad canem) second referendum. purpose, from which profits then flow. the presidency, the US has still not had
It is unlikely many Africans will wel- re-engage and that to do so effectively it attack in the last paragraph, and the Politics and attitudes towards Europe Here in “Silicon Fen” we have a sensible fiscal policy. The Trump
come the prospect of returning to the must place economic ties to Africa up challenge to Mr de Botton fils to explain are formed locally — a point mirrored innovative, high-tech, co-ops administration and a Republican
era of “us or them” development part- the priority list. The recent passage of the problems facing the company, in your Big Read article “Pinning the succeeding with very actively engaged Congress implemented a tax cut
ners depicted in this vision, or feel legislation that doubles the spending seem to drift off into the absurd. blame on Brussels” (December 17), shareholders as workers and owners raising the deficit by nearly $1tn.
much sympathy if America is the one power of the Overseas Private Invest- William Meller which highlights that Italian attitudes who are then equally committed to the Cutting taxes at full employment is not
left behind. If the US has lost ground to ment Corporation is one step in the Santa Barbara, CA, US to Europe are changing as a result of long haul. Meanwhile I continue to wait exactly what JM Keynes had in mind.
rivals, it is successive administrations right direction. Giving a bigger role to worsening local socio-economic for an FT Big Read on the broader UK Consequently, the Fed has been raising
that are to blame. Washington has the US government agency that han- Who would campaign conditions in that country, particularly co-operative sector. interest rates despite persistent
responded with complacency to the dles private sector lending abroad for the young. The challenge for UK Stuart Newbold criticism from President Donald
past two decades of changing dynamics plays to America’s strength by promot- for Mrs May’s deal? Remainers will be to convince people Secretary, Trump.
on the continent, where bouts of rapid ing closer business ties. It is a pity, Camilla Cavendish has declared that it that their personal wellbeing, Cambridge Co-operative party, Finally, in the absence of an elected
economic expansion have meant the however, that Mr Bolton depicts such would be “in the national interest” to community, security and life Cambridge, UK EU government, who — apart from the
emergence of more assertive govern- measures as designed explicitly to hold a second referendum “with only opportunities will best be safeguarded European Central Bank itself — could
ments, a growing consumer class and a project US power in Africa, rather than two alternatives on the ballot paper: by staying in the EU and that the false Suggested rebrand has have the authority to combine a
host of new suitors from around the to promote reciprocal interests, and to Mrs May’s deal or remain” (“May must narrative of the Brexiter fantasists, weighted average of EU government
world. counter the influence of “great power” call the bluff of hardliner Brexiters and which has already done immense harm painful connotations eurozone fiscal policies with monetary
The pioneering spirit with which rivals. Such language is out of step with seek a second referendum”, December to the country, offers no solution to the I read with interest the commentary in policy, and formulate a directive for
Americans built their nation has been the times. 15). This makes no sense. Who would country’s fundamental problems. the Lex column of a potential tie-up the ECB to follow?
campaign for Theresa May’s deal? A Richard Wright between Deutsche Bank and Bob Sleeper
government that had just abandoned London NW8, UK Commerzbank (December 14). Boca Raton, FL, US
it? Members of parliament whose However I am not entirely sure if
opposition had just caused the An alternative model “Deutschmerz”, the name of the
government to abandon it?
worth FT’s consideration merged entity suggested by Lex, would Correction
UK’s student funding is If nevertheless a majority of the
electorate preferred Mrs May’s deal,
that would face parliament with the
While I agree with Martin Wolf’s
review of publications detailing the
make it past the re-brand consultants.
The Teutonophiles among your
readership would recognise that
c An entry in a bar chart showing
banks’ total assets accompanying a

overdue radical reform prospect of implementing a course of

action opposed by the House of
Commons, and abandoned by the
damaging and perverse incentives of
the modern plc (“Rethink the purpose
of the corporation”, December 12) —
“Schmerz” loosely translates into
English as “pain”. Probably not a good
reminder of what shareholders have
Lex note on Friday December 14 was
incorrectly labelled MUFG. The entry
was for Mizuho Financial Group.
government. It would be a further great and can add Rana Foroohar’s Makers endured for some considerable time.
An accountancy change sheds light on a system lacking clear strategy blow to the doctrine that MPs are the and Takers to those mentioned — I do On the subject of connotation, I
representatives, not the delegates, of not entirely share his prescription of imagine that another possible OPINION ON FT.COM
The realities of Britain’s student loans ernment spending. This clarity is wel- their constituents. “better companies and more abbreviation of the amalgam, “CoDak”, The best of FT columns from 2018
system have been papered over for too come, if overdue. Instead of spending If a second referendum were to offer competition” as the solution. would also be rejected. Brexit, Trump, Merkel, China and trade, Big
long. Increasing numbers have billions without transparency, there the electorate the choice between This indeed is part of the answer. But Algernon Bennett Tech — the big stories of the year
attended universities, accruing ever- will be greater honesty about the costs remaining and crashing out, that would alas I also feel the Financial Times is as London SW15, UK www.ft.com/opinion
greater quantities of debt while the of higher education.
government picks up the bill for loans The change might gradually alter
that will never be repaid. The aim of government policy. It reveals that the
bringing more students into higher
education, via loans repaid on future
public finances are less healthy than
previously admitted. It may also prove
Colonial law Reporting from a democracy, I don’t
generally expect my sources to be
“The district magistrate told me:
‘You are an educated man — how can
people have been criminally
prosecuted in the past few years.
salaries, was well intentioned. But the
poor design of the system has resulted
a tempting carrot for politicians who
wish to reduce tuition fees, as the loans catches India’s arrested. That’s particularly true
when the contact in question is an
you say these offensive words?’” the
defence analyst said last week, after
The posts that seem to invite the
greatest wrath from officials have
in rising costs and questionable out-
comes from some graduates.
now increase the associated cost to the
government. The crucial point, how- social media English-speaking defence analyst,
working for a strategic policy think-
the charges against him were dropped.
Mr Iyer-Mitra’s prominence ensured
been politically-tinged, criticising or
lampooning powerful individuals such
A dose of financial clarity was deliv-
ered on Monday. The Office for
National Statistics announced it will
ever, is that this accountancy change
allows the country to start a far more
important conversation about the pri-
satirists off guard tank backed by retired diplomats,
generals and intelligence officials.
But, in late October, Abhijit Iyer-
his arrest drew plenty of headlines.
But away from the media spotlight,
ordinary Indians are finding their
as prime minister Narendra Modi or
Yogi Adityanath, the chief minister of
Uttar Pradesh. While convictions are
put the long-term costs of student loans orities, structure and funding of the Mitra, a senior fellow at New Delhi’s freedom of expression doesn’t extend rare, the years-long court processes
on to the government’s books. That whole of tertiary education. Institute of Peace and Conflict Studies, as far as they thought on social media. are in themselves a tough
means £12.3bn will be added to the The Augar Review is examining all was arrested in the eastern state of India’s liberal, post-independence punishment, particularly for working
annual deficit — wiping out much of the post-18 education. It should start from Orissa and taken to prison, where he constitution guarantees free speech class people, for whom even hiring a
Treasury’s fiscal headroom and poten- the fact that universities have survived was detained for 44 days. His crime? and free expression as a fundamental lawyer is a crushing financial burden.
tially breaching the chancellor’s “fiscal austerity relatively well, partly because A satirical video he posted on Twitter right. But colonial-era provisions to Mr Gupta frets that the number of
mandate” to keep borrowing under 2 of the failure to recognise the true costs of himself at the 13th-century Sun the penal code impose restrictions on such cases is likely to rise, unless India
per cent. The accountancy tweak of student loans. Successive govern- temple in Konark known for its erotic words deemed “provocative” or that reforms its complex welter of “content
might look like a dramatic policy ments have also paid too little attention carvings. insult or offend others’ religious laws”, now easily abused by police
change. But it acknowledges reality. to other forms of tertiary education. It In the video, Mr Iyer-Mitra, who is feelings. These vague standards, as eager to please their political masters.
The ONS’s procedure for measuring was no coincidence prime minister openly gay, adopts a faux-scandalised well as prohibitions on “obscenity”, “The laws are a great danger to
student loans followed similar interna- Theresa May launched the review at a tone as he describes the brazen are vulnerable to abuse. everyday people — they don’t know
tional rules. But, given the large size of further education college. display of sexuality on the temple’s In recent years, academic books, what [they mean],” says Mr Gupta,
the UK’s book and the fact that the debt The review should also recognise the walls, including depictions of paintings and even plays have been who is a lawyer. “Indians are no
repayment is income contingent, it
flattered the public spending figures by
perverse incentives in the current
structure, which favours the taking of New Delhi homosexual acts and bestiality. He
says his intent was to mock rightwing
removed from the public domain,
amid complaints they are offensive.
different from anyone else in the
world — they will talk about politics. If
overlooking how many loans would not
be repaid. Student loans are higher as a
university degrees by young adults
above all else. There is a debate to be Notebook Hindu groups that opposed the recent
decriminalisation of homosexuality,
As more Indians get online and hook
up to services such as Facebook,
you have content restrictions that are
penal offences and can lead to
percentage of the UK’s gross domestic had about whether the least successful as antithetical to Hindu culture. Twitter, and WhatsApp, they face a imprisonment, it’s just going to lead to
product than in comparable countries, students — those with the poorest job by Amy Kazmin Police alleged the video was an growing risk of criminal prosecution an explosion of litigation and people
such as Australia. The old measure opportunities — would not be better off affront to Orissa’s people, and booked for expressing their views. being in jails.”
allowed the government to ramp up in other forms of tertiary education. him under colonial-era laws that According to Mint, an Indian For his part, Mr Iyer-Mitra has
student numbers without apparently The review should also examine the make it a crime to offend religious financial newspaper, there have been returned to Twitter, seemingly as
increasing spending. But this was a interest rates on student loans — over 6 feelings. They also took umbrage with at least 50 reported incidents of irreverent and combative as ever. But
delusion: the true cost of the loans per cent for higher earners with the some older tweets in which Mr Iyer- people being criminally prosecuted in his first tweet on regaining his
would not be accounted for in spending largest loans — as well as the lack of Mitra joked with a politician friend for social media posts or comments in freedom, he recalled a former teacher,
terms for 30 years, while the interest caps on student numbers. The UK’s about whether Orissa or its 2017 and 2018, spending anything who used to tell him: “‘Your jokes are
was welcomed in the present. renowned university sector must be neighbouring state was superior. That from a few days to six months behind more dangerous than your serious
The ONS will now separate the UK’s allowed to thrive, but at a sustainable became the subject of a second bars. But Apar Gupta, chief executive comments.’ Today I understand
loan book into two: loans that will be level. The aim must be to fund a diverse criminal case. A local judge initially of the Delhi-based Internet Freedom exactly what she meant . . . finally.”
repaid will be counted as genuine gov- system that provides opportunities for refused to grant bail, scandalised by Foundation, says the government’s
ernment lending, while those likely to all, while avoiding inordinate support Mr Iyer-Mitra’s attempt at humour. own data suggest that at least 3,000 [email protected]
be written off will be counted as gov- for the university sector alone.
Tuesday 18 December 2018 ★ FINANCIAL TIMES 9

Opinion
No-deal dreamers could force a Brexit rethink
a sign that all was not well with Brexit. vote for disruption. Black Wednesday, chaos distract attention from the long- Most Tory moderates are not yet ready it suggests, it might push its backers
britain Yet some supposedly serious figures when the UK crashed out of the Euro- term economic damage. Disruption, to back a “people’s vote”. But the hard- towards Mrs May’s plan to avert no-
are embracing no-deal with a terrifying pean exchange rate mechanism, lasted however bad, will ease. But the option of ening of stances is driving people to deal. Conversely, if a referendum has
Robert equanimity. Jeremy Hunt, the foreign only a few hours but people did not for- simply trading under World Trading extremes. Once you opt to spare your- the numbers we will be down to arguing
Shrimsley secretary, opined that “even in a no-deal
situation this is a great country, we’ll
get how they felt as mortgage rates rock-
eted. The Tory rout of 1997 will be as
Organization rules would, to take just
one example, make British agricultural
self the effort of untidy compromise the
choice comes down to two options: leave
over the question. It could even break
the logjam by allowing Mrs May to win
find a way to flourish and prosper. We’ve nothing compared with what voters will produce more expensive in Europe than brutally or reverse the decision. backing for her deal by promising to put
faced much bigger challenges in our his- do to a government that needs the Canadian food, since Canada has a pref- With no-dealers getting more asser- it to a public vote.
tory.” Mr Hunt, whose journey from assistance of Dfid in its own country. tive and Theresa May’s plan in desper- None of this factors in the wrecking

A
t one of the recent cabinet Remainer to Brexit hardliner is Odys- But perhaps Mr Hunt is not position- ate straits, her allies need to keep both potential of a no-confidence vote, as and
discussions on no-deal
Brexit preparations, the
sean in its improbability, did concede
that “we shouldn’t pretend that there
ing for the leadership. Maybe he truly
shares his predecessor’s view that once
As hardliners become the prime minister and her deal afloat a
little longer. This is where the idea gain-
when Jeremy Corbyn, the Labour
leader, tables it. But the real appeal of
international development wouldn’t be disruption”, but with British the UK shows it is serious about no-deal more assertive, May’s ing ground in cabinet for an indicative the indicative vote idea is that it keeps
secretary, Penny Mordaunt
chipped in to say that the Department
phlegm, we’ll muddle through.
Leave aside the huge economic con-
planning, the EU will blink. Boris John-
son wrote that the EU “will give in,
allies must keep her free vote comes in. Under this plan, MPs
get a non-binding vote to show the levels
Mrs May’s deal alive while also being a
way to ease her from her own fixed posi-
for International Development could cerns, the politics of the no-dealers are believe me, but only if we are ready to deal afloat a little longer of enthusiasm for a range of options: a tion. Once the parliamentary maths is
play a valuable role, given its expertise truly baffling. Do they really believe vot- walk away”. no-deal exit, a second referendum, the clear, one faction will have to change
in emergency planning. When the head ers are going to thank them for a period From such thinking comes the Brexit erential trade deal. And a WTO exit does May plan and the “Norway Plus” idea tactics. It might be the people’s vote
of the department specialising in of shortages and queues? People may hardliners’ exciting new phrase: “man- nothing for services. But Brexit hardlin- that keeps the UK in the single market. campaign, it might be Mrs May; it might
disaster relief offers help with post- not ultimately be denied vital medicine, aged no-deal”. It’s no-deal, but it’s man- ers will take a cut in income as a price of In an ideal world this could build even be the no-dealers.
Brexit contingency planning, alarm but they have only to fear they will for it aged. How soothing; well, it might be if “independence”, perhaps because it is cross-party unity around a course of But sooner or later one side has to
bells really ought to ring. Food parcels to leave a lasting impression. the people “managing” it weren’t the not they who cannot afford the cut. action. At the least, it will show one side blink. For all the Johnsonian assurances,
and clean water might be welcome in We may applaud the Blitz spirit but no same ones who had been managing the The increasingly vocal support for no- the risks of not backing her plan. If, for I would not bet on it being the EU.
drought-ridden Afghanistan. Their one actually voted for bombing. They negotiations for the past two years. deal is driving moderates into the reluc- example, support for a second referen-
arrival in Cumbria might be taken as may have voted for Brexit; they did not Worryingly, stories of immediate tant embrace of a second referendum. dum is not as strong as the campaign for [email protected]

Daniel Pudles

America, China 2018

A year in a
word / n.
and the art of Toxic
(adjective) poisonous, malignant

confrontation When Britney Spears took a “sip

from the devil’s cup” 15 years ago,
how could she know that her song,
“Toxic”, describing an addiction to a
dangerous man, would prove so
prescient? For this year toxicity has
been — in Ms Spears’ words — “in the
renegotiation of the lease rather than a air and . . . all around”.
global affairs demolition of the building. Toxic is the Oxford English
However if you listen to some of Mr Dictionary’s word of 2018. The
Gideon Trump’s senior officials — those who dictionary said that in the past year
Rachman actually make policy on a daily basis — it
is hard to avoid the impression that the
there had been a 45 per cent rise in
the number of times the term had
US is settling into a long-term confron- been searched on
tation with China. Their analysis is that, oxforddictionaries.com.
for decades, America has got China pol- In the year after the #MeToo

T
ell me how this ends? was icy wrong, naively assuming that China movement emerged, misogyny and
the despairing question would become less authoritarian as it aggression were identified as signs of
attributed to American became richer, and that a rising super- toxic masculinity. As waves of mass
generals as they contem- power could be safely integrated into a shootings hit the US, commentators
plated the quagmires in US-led rules-based order. They argue identified a common link: the
Vietnam and Iraq. The same question that the consequences of these miscal- perpetrators were all men; furious,
needs to be asked by US policymakers culations are now emerging in a pattern bitter men. Toxic masculinity does
now, as they consider the escalating ten- of aggressive Chinese misbehaviour — not only hurt women, wrote
sions between America and China. on everything from the construction of Australian novelist Tim Winton this
The world’s two most powerful coun- military bases in the South China Sea to year, it teaches boys to suppress their
tries are locked into confrontations on a industrial espionage. emotions. It is a “burden to men . . .
range of issues, including trade, technol- These deep-rooted US objections it narrows their lives. Distorts them.”
ogy, espionage and control of the South are not the kind of thing that can be Toxicity suffused political
China Sea. Broadly speaking, there are fixed by China lowering car tariffs, or discourse too, propelled by social
two ways of interpreting these clashes. buying more soyabeans. Indeed a swift media outrage. Pick a side and lash
The first is that Donald Trump’s admin- trade deal could actually be counter- out — to hell with civility. In real life
istration is determined to reset the US- productive. of 5G technology. Law enforcement, arrested in Vancouver, but not, so far, The hawks in Washington are relishing (or IRL, as the “extremely online”
China relationship. The second is that The impression that a gap has opened trade disputes, counter-espionage and a Americans. the more overt use of US power in their say), strongmen identified
the US has now embarked on an effort to up between Mr Trump and some of his competition for technological suprem- Over the next few months, Beijing will confrontation with China. But they too bogeymen. In the US, President
block China’s rise. advisers is strengthened by the current acy are hard to disentangle in the Hua- probably attempt to appease Mr Trump need to think about “how this ends”. Donald Trump whipped up attacks
The first approach focuses on objec- furore over the arrest of Meng wei row. with some headline-grabbing “wins” It is not realistic to think that the US on a carousel of moving targets —
tionable Chinese behaviour; the second Wanzhou, the chief financial officer of Yet whatever the suspicions in Bei- that reduce the size of the US trade defi- can ultimately stop China’s rise. Indeed fake news, migrants, Jeff Bezos.
objects to the very idea of China as a Huawei, the Chinese telecoms com- jing, the Chinese government is clearly cit with China. Such a tactic might buy any effort to do that will lead to a dan- In the UK, the novichok
rival superpower. pany. Mr Trump apparently did not not resigned to the idea that it is locked some short-term peace. But, over the gerous surge in tensions. And that could poisonings brought into focus the
These two ways of thinking point to know that the arrest was coming, and is into an escalating and unavoidable con- long term, both Washington and Beijing easily end in war. Equally, it is not realis- literal definition of toxicity. An
very different potential endings. The rumoured to have been furious when he frontation with the US. For the moment, must think more profoundly about tic to think that profound changes in attack on a former MI6 informant
first approach — the reset — ultimately heard about it. China is focused on trying to use a three- “how this ends”. Chinese behaviour can be achieved in a and his daughter was blamed on
ends with a deal. The second approach The fact that Mr Trump is talking month truce in the trade war to achieve The Chinese need to recognise that grand bargain over the next three Russia. A second couple, one of
— blocking the rise of China — points to a about possibly intervening in the Meng a broader settlement. Apparent “retali- there has been a profound and bi- months. whom died, were accidental victims.
prolonged and deepening antagonism. case, as part of his mooted deal with atory” arrests in China have targeted partisan shift in American thinking. So The US needs to set ambitious Despite Kremlin denials, relations
Even within the Trump administra- China, will strengthen the belief in Bei- Canadians, because Ms Meng was trying to hoodwink Mr Trump or wait but achievable goals in its current between the states are poisoned.
tion, there remains considerable ambi- jing that this is no mere law enforce- him out will ultimately not work. confrontation with China. It should Then there was the environment.
guity about which of the two approaches ment action, but instead part of a Instead, China has to consider much accept that the chill in relations could In October, the World Health
the US is pursuing.
The president has recently tweeted
broader policy of confrontation. Hua-
wei has been the subject of increasingly
Beijing needs to recognise more significant changes in its policies
on everything from forced technology
last a long time. But in the end, the
approach should be closer to Mr
Organization published an alarming
report that said 93 per cent of the
about getting a “a big and very compre- vocal warnings by western intelligence that there has been a transfer, to the South China Sea. It could Trump’s The Art of the Deal than Sun world’s children breathe air so toxic
hensive deal” with China. That suggests
that he is a “reset” man. In real estate
agencies which believe that it would be
foolhardy to allow a Chinese company
profound and bipartisan be its last chance to head off a long-term
confrontation with the Americans.
Tzu’s The Art of War. that thousands died.
Emma Jacobs
terms, he is aiming for a comprehensive to play a central role in the introduction shift in US thinking The US also has some thinking to do. [email protected]

The threat of catastrophe has never been greater for humanity

these academic doomsters. Many of Bostrom, director of the Future of have also helped deter rather than trig- calamity, technological regression is uct. The mass deployment of facial rec-
TECH NOLOGY these threats are outlined in a disturb- Humanity Institute at Oxford univer- ger global conflict. not going to happen. So, logically, we can ognition technology and social credit
ingly eloquent book, On The Future, writ- sity and author of the best-selling But what happens if humanity runs only ever try to strengthen international scoring in China may highlight the
John ten by Martin Rees, one of Britain’s most Superintelligence, suggests how we might out of luck and pulls a black ball out of regimes that limit the risks of tech- shape of things to come.
Thornhill eminent scientists, who helped set up
the Centre for the Study of Existential
try to reduce those risks to our vulner-
able world. His paper starts with a stun-
the urn, a technology that by default
threatens to destroy the civilisation that
nological misuse and implement more
preventive policing to pre-empt bad
But intrusive surveillance systems
are inherently dangerous to our
Risk at Cambridge university. The ning metaphor. One way of thinking invented it? There are some possible actors. In short, we need smarter global freedoms, as the Bostrom paper
author’s contention is that the stakes about human creativity, Professor Bos- candidates: the creation of vast swarms governance and what he calls a “high- acknowledges. Developing the capab-
have never been higher for humanity: trom says, is to compare the process to tech Panopticon”. ility for “turnkey totalitarianism”

I
t is tempting to believe that we we have reached such a level of techno- pulling balls out of a giant urn. Thank- It will be difficult to move towards carries risks even if the key is never
must have reached peak chaos,
given the insanities of Brexit poli-
logical capability that we now possess
the power to destroy our planet by mis-
fully, most of the balls that we have
pulled out, representing new ideas, dis-
We possess the power to stronger global governance in an age of
revamped nationalism, especially when
turned. But, he argues, it may be worth
taking those risks if preventive policing
tics and the inanities of President take and must pursue more responsible coveries and technological innovations, destroy our planet by the threats remain so abstract. But, as really can stabilise civilisation against
Donald Trump. But we can cheer
ourselves up this festive season by imag-
innovation.
Yet we exhibit no sense of urgency
have been white — or beneficial.
A few, such as nuclear weapons, have
mistake and must pursue the climate change agreement reached
in Katowice, Poland, at the weekend
the most hideous threats.
Similar logic about weapons of mass
ining the ways in which things could be about many of these potential dangers. been grey and potentially lethal. There responsible innovation shows, it is possible to make halting destruction pushed a US-led coalition
so much worse. If we knew that there was a 10 per cent is no doubt that the 70,000 nuclear war- progress when there is sufficient global into the tragic intervention in Iraq in
During the past few years, a sprin- probability that an asteroid might crash heads the superpowers built during the of killer drones, runaway artificial intel- will. 2003. Pre-empting presumed threats
kling of institutes has sprung up in UK into earth in 2100 then we would mobi- cold war at a cost of more than $10tn ligence or next-generation biological Far more controversially, Prof Bos- can itself be a highly perilous business.
and US universities with the explicit aim lise every resource to save our descend- could have annihilated our civilisation, weapons. The wider availability of trom argues that it may be “technologi- But Prof Bostrom is surely right to stir
of researching existential risks to our ants. But we remain alarmingly insouci- if unleashed. cheap, powerful and destructive tech- cally feasible and affordable” to the debate on how to protect our vulner-
species. Catastrophic climate change, ant about the threat of global warming But the “saving grace” of nuclear nologies is one of the gravest threats of strengthen predictive policing by intro- able world from technological chaos.
nuclear war, pandemics, a rogue super- or genetic engineering given the risks weapons is that they are extremely our times. ducing continuous monitoring of the The future is worth preserving.
intelligence and alien invasion are just seem more nebulous. expensive and hard to develop, let alone We cannot hope to uninvent inven- world population. This would cost about
some of the scary scenarios explored by A working paper from Nick deploy. Their demonstrable horror may tions, Prof Bostrom argues. Short of 1 per cent of global gross domestic prod- [email protected]
10 ★ FINANCIAL TIMES Tuesday 18 December 2018

Tech IPOs: directional hypothesis

Spotify took an unconventional route to a listing by selling shares directly to investors. Other tech
businesses may consider doing the same thing. A big brand and convincing growth story both helped
Spotify. However, that has not stopped its shares from drifting below their list price.

US IPO market Valuations of IPO candidates

Twitter: @FTLex $bn
Number Proceeds ($bn)
300 100 Uber
such as the risk of damage to Airbnb
Auditors/competition: recruitment, are weak. The CMA 250 Hoshizaki Electric:
80 Spotify*
called to account warns that, if the proposed remedies cube rout
fail to work, tougher measures will be Lyft
200
After the collapse of UK construction revisited. The wrecking ball may only 0 20 40 60 80 In a cheap hotel, a noisy ice machine
60
firm Carillion, the auditing profession’s have been stayed for now. in the corridor can ruin a good night’s
reputation took a pounding. Blows 150
Spotify underperforms sleep. Investors in Hoshizaki Electric, a
were aimed at the competence of the Index and share price, rebased Tokyo-listed maker of commercial ice
bean counters and the dominance of 40 dispensers, know what that is like. The
the biggest firms. Their regulator fared
ABB/Cevian: 100
140
dull whirr of an internal investigation
Spotify
even worse. A rebuilding plan has been steampunked 120 into suspected sales inflation at a big
set out in two hard-hitting reports. 20 regional subsidiary had dragged on the
50 Nasdaq
Sir John Kingman, chairman of Smoke-belching industrial 100 stock for weeks. Then came an
Legal & General, wants to bulldoze metropolises roam Europe on tank Composite announcement — ker-chunk! — that
the Financial Reporting Council, the tracks in the steampunk epic Mortal 0 0 80 the company’s auditor needed more
existing watchdog. He describes it as Engines. They devour whole industries 2008 09 10 11 12 13 14 15 16 17 18 Apr 2018 Dec time to sign off third-quarter accounts.
a ramshackle house that leaks and before imploding. ABB boss Ulrich FT graphic Source: Renaissance Capital; Refinitiv * Latest market capitalisation Japanese business is supposed to be
creaks. Instead, he wants a new Spiesshofer has good reason to avoid improving governance. The allegations
organisation, with new leadership, the movie, two-star reviews aside: it is against Hoshizaki point, instead, to an
powers and funding. That makes sense. too close to home. An activist has Could the biggest start-ups in the US when the market decides the price. balance sheet boost. Uber, set to be old-fashioned corporate cover-up. A
A tougher set of questions has been forced him to restructure, dumping a be tempted to shed the trappings of Barry McCarthy, chief financial officer, the biggest IPO of 2019 with a whistleblower alleges that an employee
mulled by the Competition & Markets power grids unit via an $11bn sale. ABB traditional flotations when they said bankers tried to price listings low valuation in excess of $100bn, is tried to coach sales managers on how
Authority, amid concerns that the Big will clank onward. Mr Spiesshofer’s make the leap to public markets? The enough to secure a 36 per cent pop on burning through $1bn per quarter. to respond to questions over the probe.
Four have become too big to fail. The role at the helm remains uncertain. class of 2019 is packed with the first day of trading. This is hard to Lyft, valued at $15bn, is trying to Shares in Hoshizaki have fallen
watchdog’s challenge is underlined by Bloated bureaucracies and poor household names that need no prove without more direct listings to challenge Uber in more cities. Both almost 30 per cent.
the failure of regulators’ previous tries. returns have left European introductory roadshow. Airbnb, compare IPOs with. Spotify shares rose would be unwise to turn down the Hoshizaki had been one of a handful
Despite the halfhearted reforms of a conglomerates exposed. ABB is the Uber and Lyft have just the right sort 13 per cent on the first day of trading opportunity to raise more funds. of “ten-baggers” on the Topix — a stock
few years ago, the Big Four still conduct second big victory for Cevian of late. of brand recognition to pull off a and now trade below the IPO price. Slack claims to have plenty of cash with a return of more than 10 times
97 per cent of the audits of big groups. The Sweden-based “constructivist” also direct listing. The real pull is saving money. Going left over from the $1.2bn it has raised since its initial public offering in
How to give smaller firms a better pressed ThyssenKrupp to spin off a Selling shares straight to the public to investors means companies can so far but is less well known. It may December 2008. Sales growth seemed
chance of winning business? One idea steel unit. Pernod Ricard and Nestlé saves money and time. Spotify has avoid bank fees ranging from 3.5 per need banks to sell its story to strong. Operating margins were about
is to introduce caps on market share. are under attack from US activists. already demonstrated that it is cent to 5 per cent of the money raised. investors. Airbnb is high-profile, one-quarter higher than competitors.
But that is no panacea. A better option, Steampunk fiction is classed as possible. Recode reports that others They can also sidestep the mandated profitable and lacks the sort of wildly In 2014 the stock became a founder
which the CMA favours, is joint audits. “alternative history”. One might define are considering a copycat move. quiet period that limits information expensive expansion plans of Uber member of the JPX-Nikkei 400, an
Giving small firms the chance to share the narrative offered by Mr Spiesshofer Deviation from the norm means provided and the post IPO lock-up that and Lyft. Dave Stephenson, chief index designed to showcase the
audits with bigger firms should help the same way. ABB is selling a division extra risk — something that bankers prevents share sales. financial officer, joins from Amazon country’s most profitable, shareholder-
them build up capacity. But given the that produces high-voltage electrical will be happy to point out as they try The catch is that few can afford to list in the new year. If he wants to set friendly companies. Hence relatively
huge size gap between the Big Four and kit, apparently because the time is to defend their fees. But Spotify without selling new shares. Spotify was Airbnb’s IPO apart a direct listing is high ownership by foreigners. They
the rest, the small fry will find it hard right. Cevian was not mentioned. claims that valuations are higher sufficiently well funded to eschew a one option he should consider. appeared happy to overlook miserly
to close the gap. Payouts to investors were tallied up. cash returns. This summer, brokers
When it comes to improving A 5.4 per cent fall in the shares during CLSA put Hoshizaki on a shameful list
standards, some bold options are put Mr Spiesshofer’s incumbency was of companies that had never offered to
forward. The CMA suspects auditors’ lower in the mix. materialise, he will be a probationer. wants Just Eat to sell a minority stake number one food delivery platform, buy back shares, despite free cash flow
focus on quality is diluted by the The stock was unchanged by the By acting sooner, bosses of other in the Brazilian food portal iFood. This Just Eat has the protection of a strong well in excess of dividends.
massive share of revenues that comes restructuring news. The sale to Hitachi conglomerates can avoid that jeopardy. could fetch up to £800m. A subsequent network effect. JPMorgan notes Hoshizaki has eight business days to
from other services such as consulting. at an enterprise value of $11bn is at the capital return to investors could go that only 5 per cent of the group’s complete a review that will satisfy
That point can be exaggerated. Some low end of expectations. Without new some way to offsetting this year’s restaurants currently overlap with Deloitte before triggering Tokyo’s rules
of the oldest jokes about accountants borrowing, the capital return to ABB Just Eat/Cat Rock: 25 per cent share price decline. its two private competitors. on automatic delisting. For now, the
pre-date diversification. (An example: shareholders would be about $1bn less So far, so predictable. Activists Cat Rock supports Just Eat’s move damage since disclosure of the sales-
What are profits? What do you want than the $7.6bn to $7.8bn targeted. pizza their mind always want disposals. Cat Rock is a into delivering food with its own fleet inflation probe at the end of October is
them to be?) Even so, it is worth Even a pledge to save $500m in costs small, obscure hedge fund with only of vehicles. But it sees no reason why about ¥285bn ($2.5bn) in market
sharpening the focus. The CMA thinks did not move the needle. Taxed and Three-quarters of Britons would rather 2 per cent of Just Eat’s shares. this should hit profits per order more capitalisation, or about 200 times
the pay of audit partners should be capitalised, that should be worth suffer in silence than complain about a Its subtler point is more convincing: than it already has. It wants Just Eat to greater than the company’s early-
drawn only from profits from their own almost $4bn, nearly one-tenth of ABB’s bad meal, according to one study. If US Just Eat risks sacrificing earnings in a agree to three-year profit targets. December estimate of its cost impact.
part of the business. The only way to market worth. The group expects to dining is better, it may be because rush for sales. About three-quarters of This seems like a big ask, given the The scandal at Nissan, it seems, has set
be paid more will be to do good audits. raise operating margins by as much as Americans speak up more readily. In long-term incentive payments for the fluidity of the market. However, Cat investors’ nerves on edge.
More drastic remedies are possible. 4 percentage points from 12 per cent the same way, one US investor hopes likes of new chief Peter Plumb now Rock is right to question the change of Companies with questionable
Labour has mooted a break-up. The today. That looks do-able. that kicking up a stink over standards depend on sales performance. direction at Just Eat. The business governance are skating on thin ice.
big firms have lobbied hard against Mr Spiesshofer’s presentation was of management at Just Eat will improve Shareholder returns matter less. could waste a lot of money pretending
an outright split between audit and admirably slick. But the share price the quality of their offering. Just Eat must feel threatened by to be a private company. To close the
consulting arms. Some arguments suggests that he is in the unenviable The UK food group dismissed the tougher competition from Uber Eats discount with other listed peers such as Lex on the web
For notes on today’s breaking
have force, such as the impact on position of an incumbent re-applying private concerns of Cat Rock Capital. and Deliveroo. But a scramble for Takeaway.com and GrubHub, it should stories go to www.ft.com/lex
international networks. But others, for his job. Until cost savings So the hedge fund has gone public. It business could be self-defeating. As the return to behaving like one.

CROSSWORD ACROSS
1 State essentially giving rector
5 Judge, stripped bare, nibbled
the queen (7)
No. 16,044 Set by CHALMIE restorable friary (8) 6 School groups lose 150 fools (5)
6 Warning about Belgium’s 7 Old character taken in by telco
       
Einstein? (6) set-up – they’re not fair! (9)
9 Taps notice backing energy 8 Hands over worried predator (5)
food (6) 14 Suddenly admits man’s
 
10 Crackers pieces about one small embarrassing situation (5,4)
copper (8) 16 Display equipment is £1,000
11 Determines position of sea otter less after climbing mushrooms
  in difficulties (10) (9)
12 Slippery customers were flush 17 Fruit gone off before people
occasionally (4) look inside (4,5)
     13 Force, in step, suffocate (6) 19 Covers Sarah Huckabee Sanders
15 Maybe Ferdinand’s holding very initially taking fierce criticism
dry dishes (8) (7)
   18 German aristos could be sex 22 More competent constable
party guests (8) redoubles arrests (5)
20 English flower festival (6) 23 See through poet’s sauce (5)
   
21 Friends hit back (4) 24 Flyer’s a six-footer, head-to-toe
23 Gross me out, somehow, with (5)
where relatives may sleep (10)
25 Organised the Panel for
 
Endangered Species (8)
26 Investigation about fraudulent Solution 16,043
royal ends in Leeds? (6) * 2 ) $ 6 7 ( 5 6 7 5 , 3 ( 6
 
27 Fail to start job, longing to 5 ( + 9 $ 8 8 2
( 8 6 7 $ & ( 7 $ 1 7 5 , &
return to islands (6) ( 7 5 1 8 , 6 ,
28 Ants held off My Little Pony (8) 1 $ , 9 ( 7 $ 5 $ 1 7 8 / $
+ 9 & $ ( /
JOTTER PAD DOWN 2 9 ( 5 5 ( $ & 7 & 2 5 * ,
2 He comes into estate to sort out 8 2 5 2 2 1
their iron (9) 6
(
( 7 8 3
5
& 2 5 (
+
7 , 0 ( 6
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3 What you’re looking at – a * 8 $ 7 ( 0 $ / $ / 2 6 ( 5
prosperous part of England (5) $ ' 9 1 5 / / $
6 $ 8 & , 1 * * 8 , 1 ( $ 1
4 They measure exposure to ( & 7 ( 8 2 $ &
nasty green snot (9) 6 ( ( 1 $ 3 / ( 6 $ 1 ' ' , (
Tuesday 18 December 2018 ★ 11

Huawei ahead Deals keep rolling in Pension power Funds are adding their
despite US concerns — ANALYSIS, PAGE 14 voices to investor activism — INSIDE FINANCE, PAGE 12

Techs hid Russian meddling in US Energy

Source
3 Senate reports criticise lack of disclosure 3 Groups withheld extent of poll interference
Their conclusions provide further rules for tech groups such as forcing gest US companies for withholding
Ed
KIRAN STACEY — WASHINGTON
ammunition for those in Congress who social media users to share their real ‘This information that could have helped Crooks
Big US technology companies have not want to take stronger action against the location to combat foreign interference. should tackle the abuses.
told Congress the truth about the extent US tech industry and those who want to The study by New Knowledge said the It said that neither Twitter, Facebook,
of Russian manipulation in the 2016 ramp up investigations into President Kremlin-backed Internet Research stand as nor Alphabet appeared to have “turned If you are still looking for the perfect present for an annoy-
presidential election, according to a Donald Trump. Agency used every social media plat- a wake-up over complete sets of related data to ing neighbour or unfaithful spouse, there are several serv-
report prepared for US senators. Mark Warner, the committee’s Demo- form, Google search and even online [the Senate intelligence committee]”. ices that will send a lump of coal. It would be an appropri-
Facebook, Twitter and Google failed cratic vice-chairman, said: “This should games such as Pokémon Go to spread call to us all’ The report added: “Regrettably, it ate gift for delegates at the COP24 climate talks in Kato-
to disclose information about how their stand as a wake-up call to us all that disinformation and social division. Mark Warner, appears that the platforms may have wice, Poland, to send each other after an often acrimoni-
services may have been used by the none of us are immune from this threat, It detailed how Moscow targeted Afri- intelligence misrepresented or evaded in some of ous fortnight of negotiations. Right from the choice of host
Kremlin to promote a pro-Trump and it is time to get serious in addressing can-American voters using sites with committee their statements to Congress.” city, in the heartland of the Polish mining industry, coal
agenda, said the report by New Knowl- this challenge. I hope these reports will names such as blackmattersusa.com to Facebook said that it was “fully co- has loomed large over the meeting, intended to agree ways
edge, a cyber security company. spur legislative action in Congress and sow messages hostile to Mr Trump’s operating” while Twitter said that pro- to implement the global commitment to curbing climate
The report is one of two written for provide additional clarity to the Ameri- rival Hillary Clinton, and, occasionally, tecting the integrity of elections was an change made in Paris in 2015.
the Senate intelligence committee lay- can public about Russia’s assault on our falsehoods such as that she took dona- “important aspect of [its] mission”. The talks finally concluded on Saturday after nearly 200
ing out in detail the extent of Russia’s democracy.” tions from the Ku Klux Klan. Google declined to comment. The countries reached a compromise on a single set of rules to
attempts to interfere in US politics. Mr Warner has proposed stricter The study criticised some of the big- Kremlin also declined to comment. govern how they report their greenhouse gas emissions
and their climate targets. The agreement was hailed as a
success, but the strongest emotion among supporters of
climate action was relief that the talks had not fallen apart.
EM returns ‘Under-owned’ asset class tempts fund managers again Two incidents at the start of last week highlighted the
difficulty of finding a global consensus on how to tackle the
threat of climate change. First, the US teamed up with Rus-
sia, Saudi Arabia and Kuwait
to water down governments’
Fund managers looking for top picks in
Emerging market currencies have fared badly in 2018 ... as have equities in most EM economies approval of a report spelling
In the US,
2019 are gravitating in greater numbers to Currencies (rebased) % change in benchmark equity indicies out the consequences of let- tackling the
what has been an unloved asset class: ting global temperatures rise
emerging markets, writes Katie Martin.
Dollar index
more than 1.5C since pre-
threat of climate
JPMorgan EM currencies index
The sector has taken a beating this year, industrial times. It was no change will
Turkish lira
with JPMorgan’s emerging market coincidence that the object-
currency index declining nearly 11 per Argentine peso Turkey
ing group included the three
be taken on
cent and stocks falling more than 13 per 120 largest oil producers, and by business
cent. That is getting close to the territory another in the top 10.
where previously uninterested investors The US delegation went on to hold an event to emphasise
take another look. the importance of fossil fuels, reflecting the Trump admin-
Part of the reason for rising confidence China istration’s plan to withdraw from the Paris agreement.
is the nature of this year’s pressure, which Wells Griffith, the lead official for international affairs at
has been very localised. The violent the US Department of Energy, told the meeting: “We
currency crisis in Turkey, for example, 100 strongly believe no country should have to sacrifice eco-
left few scars on other markets. Similarly, nomic prosperity or energy security in pursuit of environ-
Argentina’s troubles were largely MSCI EM mental sustainability.”
confined to its shores and Mexico’s The US may be in a minority of one in wanting to leave
wobbles following the election of a more the Paris accord, but there are a wide range of interests and
interventionist new president did not fan objectives among the remaining countries. Xie Zhenhua,
across the spectrum of emerging market 80 China’s senior climate official, described the Katowice
investments. Argentina agreement as “a victory of multilateralism”, but the effort
Heading into 2019, China’s shifting needed to reach that compromise suggests countries will
growth pattern is a risk and volatility is continue to take different paths, at least for now.
likely to remain sharp. But as Citigroup That means in some countries, particularly the US,
pointed out, the sector is demonstrating much of the work in addressing the threat of climate
greater resilience. “The asset class is India change will be taken by businesses investing in renewable
much better placed to weather negative 60 energy and taking other measures to reduce their emis-
shocks to risk appetite than it was earlier sions, often following pressure from shareholders. There
this year,” analysts at the bank said. are limits to this approach. Some of the world’s largest
“External financing gaps have closed, investors, including BlackRock, Vanguard and Axa, have
interest rates have risen, currencies are Russia increased their holdings in coal since the Paris agreement,
cheaper and EM is broadly speaking an according to a British non-profit group, InfluenceMap.
‘under-owned’ asset class.” 40 A study published in the journal Nature Climate Change
That is echoed by investment house Jan 2018 Dec -25 -20 -15 -10 -5 0 5 10 said companies were underestimating climate change. But
Pictet, which last month bought emerging Source: Bloomberg
given the difficulties attached to climate policy, the private
markets for the first time in three years. sector looks one of the best bets to make steady progress.

Asos shares fall almost 40% as profit

warning triggers retail sector sell-off
NAOMI ROVNICK — LONDON Consultancy Springboard added to margin forecast from 4 per cent the year
the gloom, saying at the weekend that before to 2 per cent. The group forecast
Shares in UK-based Asos plunged
the number of people visiting shops in that its sales growth for the year to next
almost 40 per cent yesterday after the
Britain in November was the worst since August would be about 15 per cent,
online fashion retailer issued a profits
the 2008 recession, with so-called foot- down from the 20-25 per cent it had
warning, adding to retailers’ fears over
fall at retail parks and high streets down been expecting.
poor Christmas trading and triggering
3.2 per cent against the year before. Asos said the reversal in fortunes was
a sell-off in retail stocks across Europe.
Activist Cat Rock hits out “2018 has been progressively worse partly driven by the “high level of dis-
at Just Eat’s performance Asos warned of a “significant deteriora- and weaker [for retailers] as the year counting and promotional activity” by
tion” in the run-up to the busiest shop- has unfolded, but this accelerated from rivals. This had forced it to step up its
The US hedge fund Cat Rock has ping period of the year, showing that the October,” said Richard Hyman, a retail price cuts “leading to a higher discount
called Just Eat, of which it owns 2 per consumer slowdown that has weighed consultant. “Stuff that goes on in West- and continued high clearance mix”.
cent, ‘the worst-performing public on high street chains has also hit the pre- minster . . . the endless uncertainty has Analysts at Berenberg remained
equity in online food delivery’. The viously strong online sector. affected people.” unsure whether Asos’s warning “was
fund urged Just Eat to shed assets The Asos trading statement follows a Asos said that trading in November, driven by marketwide conditions or
and change executive pay incentives. blunt warning from Mike Ashley, Sports “a very material month for us”, was sig- operational issues within the business”,
Lex i PAGE 10 Direct’s chief executive, last week that nificantly behind expectations. It added particularly as Asos had been rolling out
Analysis i PAGE 12 Christmas shopping would “literally that it had cut expectations for the full international distribution centres.
smash [retailers] to pieces”. year and downgraded its adjusted profit Analysis page 13

Companies / Sectors / People

Companies China Exim Bank.....................................14 KFC...................................................................12 SSE...................................................................18 Sectors Gertler, Dan.................................................12
1MDB..................................................................1 Citigroup.......................................................17 KKR..................................................................12 Siemens.........................................................14 Aerospace & Defence...........................18 Ghosn, Carlos.............................................12
ABB............................................................10,14 Ctrip.................................................................14 Kamoto Copper Company.................12 Six.....................................................................17 Automobiles................................................12 Glasenberg, Ivan......................................12
AT&T................................................................7 Deliveroo.................................................10,12 Katanga Mining...................................12,12 Slack................................................................10 Banks................................................1,12,14,17 Green, Philip...............................................13
Acacia Mining............................................18 Deutsche Bank..........................................17 LVMH...............................................................8 SoftBank..........................................................7 Energy............................................................18 Hemsley, Mark..........................................17
Airbnb............................................................10 Elliott Management................................12 Lyft..................................................................10 Sports Direct...............................................11 Financials.......................................1,12,14,17 Higashihara, Toshiaki...........................14
Alibaba.............................................................7 Embraer.........................................................18 Matalan ........................................................13 Spotify...........................................................10 Food & Beverage.....................................17 Hintze, Michael.........................................17
Altice .............................................................14 Ericsson.........................................................14 Michelin.........................................................12 Sprint.............................................................7,7 Industrials..........................................8,10,14 Kingman, John..........................................10
Amazon..................................................1,2,10 Facebook...................................................2,11 Missguided .................................................13 Subway..........................................................12 Media.................................................................1 Low, Jho..........................................................1
Apple..............................................................1,2 General Electric........................................14 Mitsubishi.....................................................12 T-Mobile....................................................7,14 Mining.............................................................12 McCarthy, Barry.......................................10
Arcadia .........................................................13 Glencore........................................................12 Morgan Stanley........................................17 Telefónica.....................................................17 Pharmaceuticals.......................................17 Meng, Wanzhou.........................................9
Arm....................................................................7 Goldman Sachs......................................1,17 NTT DoCoMo...............................................7 ThyssenKrupp...........................................10 Retail...............................................11,12,13,18 Mistakidis, Aristotelis............................12
Total................................................................17 Retail & Consumer....................................1 Nakanishi, Hiroaki...................................14
Asos.......................................................11,13,18 Google......................................................1,2,11 National Iranian Oil Company...........4
Toys R Us....................................................12 Support Services.....................................10 Peng, Vincent............................................14
Bain Capital.................................................12 H&M...........................................................13,18 National Petrochemical Company..4
Twitter............................................................11 Technology.......................1,2,7,10,11,12,14 Phillips-Davies, Alistair........................18
Belmond..........................................................8 HSBC...............................................................12 Nestlé........................................................10,17
Uber.............................................................7,10 Telecoms.............................................7,14,17 Plumb, Peter...............................................12
Bestseller......................................................13 Hennes & Mauritz...................................11 Next...........................................................13,18 Porat, Ruth.....................................................1
BlackRock.....................................................12 Hitachi......................................................10,14 Nissan.......................................................10,12 Uber .................................................................7 Travel & Leisure......................8,10,12,14
Razak, Najib...................................................1
Boeing............................................................18 Hoshizaki Electric...................................10 Nokia...............................................................14 Uber Eats...............................................10,12 People Robertson, Nick........................................13
Boohoo.....................................................13,18 Huawei.......................................................9,14 Novartis.........................................................17 Verizon.............................................................7 Arnault, Bernard........................................8 Saikawa, Hiroto.........................................12
Burger King.................................................12 IFood...............................................................10 Orient-Express Hotels............................8 Walmart.........................................................12 Ashley, Mike................................................11 Saint-Georges, Didier............................17
CQS..................................................................17 Inditex.............................................................13 Pernod Ricard...........................................10 WeWork...........................................................7 Beighton, Nick...........................................13 Senard, Jean-Dominique.....................12
Carillion.........................................................10 Innogy............................................................18 Pull & Bear..................................................13 Wells Fargo.................................................17 Bloomberg, Michael..................................1 Sherwood, Jim.............................................8
Carmignac....................................................17 Iran Air ...........................................................4 Qunar..............................................................14 Yahoo Japan................................................7 Bolloré, Thierry.........................................12 Son, Masayoshi...........................................7
Cat Rock.......................................................10 JD Sports......................................................18 Rakuten...........................................................7 Zalando...............................................11,13,18 Buffett, Warren...........................................7 Spiesshofer, Ulrich............................10,14
Cboe Europe...............................................17 Jack in the Box.........................................18 Renault...........................................................12 Zara ................................................................13 Captain, Alex..............................................12 Stephenson, Dave...................................10
Cevian......................................................10,14 Just Eat...................................................10,12 Roche..............................................................17 Evans, Michael...........................................12 Sun, Jane......................................................14

© The Financial Times Limited 2018 Week 51

12 ★ FINANCIAL TIMES Tuesday 18 December 2018

COMPANIES
INSIDE BUSINESS
Automobiles
FINANCE

Nissan delays picking Ghosn successor Sujeet

Indap
Strains show as Renault board meeting, but delayed the decision At a news conference following The decision second-largest automotive manufac-
until an overhaul of its governance yesterday’s board meeting, Mr Saikawa turer.
seeks investor meeting to has been put
allow another board seat
structure is completed next year.
Renault, the largest shareholder in
Nissan, has also pushed the company to
said he would not set a deadline for
choosing Mr Ghosn’s replacement. He
suggested the company might wait until
off until an
But the bonds between the carmakers
have been fraying, and signs of the
strain have emerged since Mr Ghosn’s
Union pension cash
KANA INAGAKI — TOKYO
DAVID KEOHANE — PARIS
hold an extraordinary meeting for
shareholders that will allow it to appoint
the end of March when a newly estab-
lished committee of external experts
overhaul of
the group’s
arrest. In a letter dated December 14,
Mr Bolloré told Mr Saikawa of his deep
shakes fist for value
PETER CAMPBELL — LONDON
Renault and Nissan are grappling with
the difficulty of replacing Carlos Ghosn,
another representative to the Japanese
board.
Under Japanese rules, Nissan has
planned to compile proposals to
improve governance.
France is laying the groundwork for
governance
concern about last week’s indictment of
Nissan along with Mr Ghosn on financial
misconduct allegations.
and social priorities
their ousted leader, as they moved to eight weeks to respond to Renault’s Jean-Dominique Senard, chief executive
structure is At the news conference yesterday, Mr
find successors to the man who built a request for an EGM. of Michelin, the tyremaker, to take over completed Saikawa did not confirm the request

O
now-teetering automotive empire. Mr Ghosn, who is also chairman and from Mr Ghosn as Renault chairman, from Renault for an emergency meet- rganised labour’s most underrated weapon
Nissan’s board failed to agree on a new chief executive of Renault, remains a according to a number of people. ing. But he said that it would be better may be its capital.
chairman yesterday, while the French director of Nissan’s board even after he Both Mr Ghosn himself and Thierry for the company to hold an extraordi- Hedge funds such as Elliott Management
state accelerated plans to replace Mr was arrested and ousted as chairman Bolloré, Renault’s chief operations nary general meeting after the govern- and index investing groups such as Black-
Ghosn at Renault amid increasing belief last month. officer, worked at Michelin before join- ance proposals were made, probably in Rock have been most vocal about putting
that he cannot return. Hiroto Saikawa, chief executive of ing the carmaker. March. shareholder pressure on boards. But pension money
Mr Ghosn remains in a Japanese Nissan, had earlier been expected to Mr Senard, who leaves Michelin in The proposals, which will extend to invested by trade unions and US states and municipalities,
prison, having been charged with double as interim chairman. But the May, is considered a close ally of the director remuneration, would be made which adds up to trillions, is increasingly asserting itself,
understating his pay at Nissan, and will company’s three external directors, French state, able to defend its interests by a seven-member governance panel not just with the traditional “maximise shareholder value”
be held until at least December 30. who have been given authority to select not only within Renault but across the led by an ex-prosecutor and including message but to push for social goals including higher wages
Nissan had been due to choose a the new chairman, requested more time alliance with Nissan and Mitsubishi, a three other governance experts and and worker protection.
replacement as chairman at yesterday’s for discussions. grouping built by Mr Ghosn into the three of Nissan’s external directors. In an era where there are growing calls to reconsider the
purpose of the corporation, social priorities are finding a
hearing in a place hitherto viewed as hostile territory: the
boardroom. And the views of pension money, once
Interview. Mark Carney thought of as a source of rogue proposals at annual meet-
ings and investor lawsuits, has started to sound much
more like the mainstream.

BoE stress test goals turn to climate risks Perhaps the most shocking victory for unorthodox
shareholder activism occurred in late November when two
blue-chip private equity firms, Bain Capital and KKR,
agreed to fund $20m in severance payments for workers of
Toys R Us, the bankrupt retailer that liquidated this year.
Private-equity-owned businesses fail regularly, leaving
nothing for their employees. But well-organised protests
by advocacy groups such as Rise Up Retail created a storm
that several state pension funds could not ignore. The Min-
nesota state pension, for example, has $650m committed
to four KKR funds (including the one used to purchase
Toys R Us). At a public meeting of the Minnesota State
Board of Investment in June attended by governor Mark
Dayton, the state suspended new commitments to KKR
until the plight of Toys R Us workers was examined.
In the statement announcing the employee fund, Bain
and KKR did not directly identify what prompted their
action. But the intense pressure, including direct threats to
investment (state pension money is estimated to provide a
third to a half of private equity assets under management),
attracted their attention. Toys R Us workers have even
thanked Minnesota for its scrutiny.
In a less publicised but equally interesting example,
Blackstone in 2017 agreed to
a formal “Responsible Con-
tractor Policy” that sets
Well organised
higher standards for the protests by
labour and construction con-
tractors it employs on
groups such as
projects in its multibillion- Rise Up Retail
dollar infrastructure fund.
The RCP was championed by
created a storm
the New York City Employ-
ees’ Retirement System and North America’s Building
Trade Union, whose members have hundreds of billions of
pension assets.
In his book The Rise of the Working-Class Shareholder, Bos-
ton University law professor David Webber recounts the
history of labour’s investor activism, predicting that
“there is no going back to a world in which labour and capi-
tal are mutually exclusive, lined up across a barren cavern
The first such test, in 2017, made bon dioxide emissions are accelerating Banks consider carbon price.” For that reason, he is of confrontation”.
Governor hopes to include banks consider the threats and opportu- at their fastest pace in seven years, hit- how mortgage against lowering capital requirements Reconciling the interests of pension money is a clear
green opportunities and nities posed by fintech, and suggested ting a record in 2018, despite pledges by portfolios could for a bank if they invest in a green point of confrontation, however. Retirement funds have a
that traditional lenders were optimisti- nearly 200 countries to limit global be hit by floods, project per se. He argues banks should mandate to meet the needs of beneficiaries and fiduciary
threats in next year’s exercise cally presuming new technologies warming to well below 2 degrees Celsius. but Mark only get favourable treatment if the risk duties to maximise investment returns. Pressing public
would let them cut costs without losing Getting the financial sector to manage Carney, BoE of the investment is demonstrably companies or private equity firms to raise wages, for
CAROLINE BINHAM AND DAVID CROW much market share. climate change risk looks set to be one of governor, below, lower. But he flagged that the opposite example, could depress these returns.
LONDON “From the first one we learnt a lot the key legacies of Mr Carney, who wants them to may be true in the future — although not Yet there are counter-arguments in this conundrum.
about how the banks managed or didn’t has extended his tenure as governor weigh up wider contemplated for the moment — and First, higher wages can make employees more productive.
The Bank of England is planning to manage these types of issues. And it was until January 2020 to help manage climate risks that banks could be penalised through Walmart’s wage raises were justified on these grounds.
include the impact of climate change in quite instructive,” Mr Carney said. “And Brexit fallout. Andy Buchanan/AFP
higher capital charges if they invested in Pensions also argue that by promoting better terms for
its UK bank stress tests as early as next so the question is whether [climate The BoE has already proposed that polluting industries because these sec- workers, a more resilient, stable base of jobs is created and
year, in what would be an unprece- change is] the next one, or the one boards of banks and insurers identify a tors were more vulnerable to a clamp- sustained which funds more pension contributions. Mr
dented move for a central bank of a after.” senior executive to take charge of man- down in the future. Webber writes that pensions could choose a less profitable
major financial centre. He joked that the exercise was akin to aging climate change risks and report to “We would be more open to a investment “as long as trustees believe that the avoidance
Mark Carney, BoE governor, told the the traditional “eyebrow raise” gover- the board — or face consequences. But ‘brown’-penalising factor, if you will, of job losses and therefore maintenance of worker contri-
Financial Times in an interview that he nors would use to signal their displeas- this has also brought accusations of mis- because something that is quite damag- butions can outweigh the profit reduction”.
was weighing whether the risks — as ure at certain banking activity in the sion creep, a charge to which Mr Carney ing, quite polluting, one would expect at The increasing power of labour investor activism comes
well as the opportunities — from climate past. The ultimate decision will be taken is particularly sensitive given that some some point that there would potentially at an otherwise difficult moment. The unionisation rate in
change should form a part of its stress by the BoE’s Financial Policy Commit- in the Brexit Leave camp have criticised be some adjustment of regulation for the US, hovering at close to 10 per cent, is at an all-time
test known as the exploratory scenario tee, which sets the stress-test scenarios. his warnings for being too political. Mr that. And a consequence of that would low. Political and judicial hostility towards organised
in 2019. A survey earlier this year by the BoE Carney rejects this, arguing that it is potentially be higher risk,” he said. labour and defined benefit pensions has increased.
The BoE tests the balance sheets of revealed that only 10 per cent of banks the BoE’s job to spot, warn and mitigate This risk-based approach is one that is “The attack on public pension plans is motivated
the biggest UK lenders every year were taking a long enough view of cli- threats to the UK’s financial stability. gaining approval in banking circles. by an effort to silence the activism of outspoken public
against a doomsday scenario to ensure mate-related risks. “We stick to our remit,” Mr Carney Daniel Klier, HSBC’s global head of funds who are at the forefront of moving an impactful
they have enough capital to withstand a While Mr Carney did not specify the said. “One shouldn’t do it by the back sustainable finance, said: “I think the governance agenda,” Scott Stinger, the New York City
shock without needing a taxpayer bail- types of climate-related scenarios the door, do it surreptitiously, do it right way of having this discus- Comptroller, said.
out. bank could test, lenders are already through a tweak to a capital rule sion is saying they are pru- That KKR fund, which had invested in Toys R Us, had
It has also introduced an exploratory looking at issues such as how mortgage or something like that in order dential regulators and want achieved an annualised return of more than 16 per cent,
scenario every two years. Banks cannot portfolios could be affected by flooding to effect something that you to make sure financial insti- says the state of Minnesota. And in September, the Minne-
pass or fail this part of the exercise — and how investments in companies really should do out in the tutions are prepared. It’s less sota State Board of Investment unanimously rescinded its
instead they are required to scrutinise such as oil groups could be hit by global sunlight with either a clear about a green-supporting or resolution to suspend future commitments to KKR.
whether they are doing enough around warming. regulation, a climate-related a brown-penalising factor:
a particular issue. The BoE’s move comes as global car- regulation or a change to the it’s about credit risk.” [email protected]

Technology Mining

Investor accuses Just Eat of failing to deliver Watchdog says Glencore unit misstated results
LINDSAY FORTADO — NEW YORK delivery service. Deliveroo and Uber targets and flawed incentive schemes HENRY SANDERSON AND NEIL HUME employees who sat on the board of some current and former directors
ALIYA RAM — LONDON
Eats, by contrast, mainly use their own have significantly damaged the value of Katanga were involved in conduct that banned from serving as directors in
Glencore’s subsidiary in the Demo-
A US hedge fund has branded Just Eat couriers to deliver, and charge restau- the business and shareholder returns”. “undermined” the company’s “corpo- Canada.
cratic Republic of Congo misstated its
“the worst-performing public equity in rants a higher commission. But this year Alex Captain, founder and managing rate governance, internal controls and Katanga Mining is the majority inves-
results and failed to disclose the full
online food delivery”. Deliveroo launched a marketplace serv- partner, wrote: “We believe the signifi- culture of compliance”. tor of the Kamoto Copper Company, one
extent of its relationship with Dan Ger-
ice mimicking Just Eat’s model, and cant underperformance of Just Eat’s One of those people is Aristotelis Mis- of Africa’s biggest copper and cobalt
tler, a billionaire businessman sanc-
It urged the company to shed assets, Uber Eats said it plans to do the same. stock reflects shareholder frustration takidis, the former head of Glencore’s mines and a vital asset for Glencore.
tioned by the US, according to Cana-
change pay incentives for senior execu- In response, Just Eat, which operates with management’s lack of accountabil- copper business. Mr Mistakidis, a lieu- The deal with the OSC comes as Lon-
dian regulators.
tives and announce three-year financial in 13 countries, has launched its own ity for delivering on the company’s tenant of Glencore’s chief executive Ivan don-listed Glencore faces an investiga-
targets in the next month. delivery service, and uses its couriers to potential for profitable growth. This The Ontario Securities Commission said Glasenberg, announced earlier this tion by the US Department of Justice
US-based Cat Rock Capital has built a deliver from chains including Burger frustration has been compounded by Toronto-listed Katanga Mining, which is month that he would be retiring at the over its activities in the DRC, as well as
2 per cent stake in Just Eat as the group King, KFC and Subway. The company the very concerning changes made to majority-owned by Glencore, had not end of the year. Venezuela and Nigeria.
faces tougher competition from Uber has said it will tap revenues for money to Just Eat’s executive compensation plan “adequately described the heightened The OSC will hold a public hearing Together with the Canadian investiga-
Eats and Deliveroo. invest in delivery logistics. for 2018, which now incentivises reve- risks” of its association with Mr Gertler, today to consider approving a settle- tion, this has put its hard-charging busi-
Just Eat is the UK’s largest food deliv- Cat Rock said in a letter to Just Eat nue growth without accounting for prof- a close friend of the DRC’s president, ment it has reached with Katanga. This ness model under the microscope and
ery marketplace, connecting diners chairman Michael Evans and chief exec- its or capital efficiency.” Joseph Kabila. is expected to result in a multimillion- weighed on its share price, which is
with restaurants that provide their own utive Peter Plumb that “unambitious See Lex It also found three of Glencore’s dollar fine for the company and see down 19 per cent this year.
Tuesday 18 December 2018 ★ FINANCIAL TIMES 13

COMPANIES

Asos reeling as investors flee ecommerce crash

Severity of fast-fashion retailer’s slowdown raises questions over confidence of millennial consumers and future of a rare UK success story
JONATHAN ELEY At the start of the year, it was less than 1
Asos shares dive per cent. Even before Monday’s fall,
Asos called yesterday’s profit warning a Share price (£) Asos shares were down over 40 per cent
“bump in the road”. But investors, who from their March highs. Michelle Wil-
saw the shares crash almost 40 per cent, 80 son, analyst at Berenberg, attributed
experienced severe whiplash. this largely to negative sentiment
The severity of the slowdown at the 70 towards the UK, which still accountx for
fast-fashion retailer, whose market a third of the group’s operating profit,
value peaked at £6.4bn in March, has 60 but others think that investors are
raised questions about the confidence of 50
becoming more wary of the investment
Europe’s millennial consumers and the needed to maintain the growth rate.
future of one of the UK’s rare ecom- 40 Asos was planning to spend up to
merce success stories. £250m a year on logistics and technol-
Shares in the company fell to a four- 30 ogy for the next few years; that has been
year low after Asos revealed in an scaled back to £200m. “The challenge is
unscheduled trading update that sales 20 to convert revenue growth into sustain-
growth would be slower than expected Jan 2018 Dec able profit growth,” said Ms Ross.
and profit margins would fall from 4 per Operating margins The company’s history has not been
cent to 2 per cent as it cuts prices and Per cent without adversity. In 2005, an explosion
spends more on marketing. at an oil terminal next to its warehouse
Analysts slashed their profit forecasts 10 halted business for six weeks while the
for this year by up to three-fifths. Forecast group’s distribution centres in Barnsley
The fall is the most serious recent set- 8 and Germany have also been damaged
back for a company that started 18 years by fires. And Asos has downgraded mar-
ago copying clothes celebrities wore, 6 gin guidance before, in 2014, when high
hence the name “As Seen on Screen”. levels of promotional activity and a
Asos had to cut prices sharply in its 4 strong pound were the culprits.
home market to maintain sales growth, At the time, Mr Beighton said margins
even at a lower pace. Customers 2 would recover but not to the 7 per cent
switched to cheaper items and spent levels previously forecast. They have
less. “Average basket size is up 3 per 0 remained around 4 per cent since.
cent,” said chief executive Nick 2012 13 14 15 16 17 18 19 This time, he is adamant they will
Beighton. “Average basket value is down Sources: Refinitiv; company
bounce back. “I am confident that 2 per
6 per cent. Those are trends I’ve not seen cent is a low point. I have every expecta-
for the best part of nine years.” tion that margins will recover and may
Suzy Ross, a consultant at Accenture, Asos revealed in exceeded its sales from stores for the was “hard to pin down why” sentiment also rushed out a statement, saying sales The shares even exceed 4 per cent,” he said.
said: “The whole of fashion retail, both an update that first time. had worsened in those countries. Asked had been in line with its expectations. Kate Calvert, analyst at Investec and
online and offline, has just become so sales growth Asos revenues of £2.4bn are bigger whether the group would have to Neither assurance was enough to pre- of other one of the few to recommend selling, is
promotional.” would be slower than those of Sir Philip Green’s Arcadia rethink its Black Friday strategy, Mr vent a double-digit percentage fall in European not so sure. “I think [margins] will
It is also much more competitive. than expected but size has brought complexity and Beighton said: “The benefit of hindsight Asos’s wake. recover but perhaps not to 4 per cent,”
When Asos floated on London’s junior and profit growing pain. Flagging consumer senti- is two weeks old. We need to have a good The company has been a market dar- retailers she said, citing the growing proportion
market in 2001 at 20p a share, it was margins would ment and discounting in the UK was think about what we do going forward.” ling for much of its existence. At one also bear of third-party brands sold on Asos.
venturing back into a marketplace few fall from 4% to only one reason for the warning. The share prices of other pan-Euro- point in 2014, its shares were valued at But Mr Beighton said poor current
thought was viable. 2% as it cuts In Australia, which it entered in 2011, pean retailers also bear the scars of over 100 times forecast profits and the scars trading did not change the group’s aspi-
Boo.com, an early online fashion prices and Asos held off Black Friday promotions heavy discounting. H&M stock fell yes- before yesterday, 18 of the 25 analysts of heavy rations, which are to lift annual reve-
retailer, had gone bust barely a year ear- spends more on as the event has traditionally not had terday after the Swedish fashion group who follow the stock still rated it a buy. nues to £4bn and possibly more. Costs
lier. Consumers surfed basic websites marketing the impact of the northern hemisphere. boosted sales only by cutting prices. Bestseller, the privately owned Danish discounting associated with the disruptive and risky
with dial-up internet services. Steve Whittaker
Germany and France, which between Spain’s Inditex, owner of Zara and Pull group that built up a 29 per cent stake in process of moving to newer, bigger
Today, around a quarter of all fashion them account for three-fifths of Asos’s & Bear, maintained greater price disci- Asos in 2010 and is still its biggest share- warehouses in Europe and the US would
sales are online, often via mobiles. Europe revenues, were also weak. pline but might not now achieve its full- holder, also remains supportive despite start to fall away in the second half. “Our
Domestic competitors such as Boohoo Mr Beighton, a former finance direc- year sales forecast. selling some shares earlier this year. ambitions have not changed. Macro
and Missguided are growing rapidly and tor at discount retailer Matalan who Germany’s Zalando warned on profits But there are doubters; around 14 per trends are challenging but that will not
established retailers have moved succeeded founder Nick Robertson as earlier this year but said it would not cent of the free float now is on loan to stop us building the business that our
online; this year, Next’s online sales chief executive of Asos in 2015, said it change its guidance. The UK’s Boohoo short-sellers, according to Markit data. customers want and that we want.”
14 ★ FINANCIAL TIMES Tuesday 18 December 2018

COMPANIES

Technology

Deep roots help Huawei

Increasing share of revenue generated
in China (Rmb bn)

Huawei stand up
300
2015 250
2016
2017 200

to US pressure
150
100
50
0
China EMEA Asia Americas
Pacific
With Beijing behind it all managed to generate $92.5bn in 2017
Global mobile infrastructure
revenue while remaining virtually shut
the way, supplier wields out of the US. market share (%)
clout in emerging markets “We started in [markets such as] Cen- 2016 2017
tral Asia, Russia and Africa, then we Ericsson 28 Huawei 28
moved into western Europe,” said a Huawei 25 Ericsson 27
LOUISE LUCAS — HONG KONG
JAMES KYNGE — LONDON Huawei executive. “We needed to Nokia 24 Nokia 23
understand customers’ requirements
As the furore over whether Huawei is a for our products and then provide inno-
ZTE 12 ZTE 13
security risk to the west raged, an execu- vations, and we accumulated that expe-
tive from the China telecoms supplier rience in emerging markets before Other 7 Other 6
gave a speech in London. expanding into the sophisticated devel- Samsung 4 Samsung 3
“Actions speak louder than words,” oped markets.”
said Ryan Ding, a Huawei board mem- The legacy of that strategy means the Sources: company; IHS Markit
ber, as he revealed that the company overwhelming majority of the 170 coun-
had signed 22 commercial contracts for tries in which the company sells prod-
5G, the next generation of mobile inter- ucts and services are in the developing Checks are potential $40bn credit line available “Clearly there was commercial exi- $92.5bn 5G standard-setting body, just one short
net, and was working with “over 50 car- world, including China, that account for carried out on a from China Development Bank in gency on the part of certain govern- Revenue generated of Ericsson, the leader.
riers” on 5G trials. the lion’s share of revenue. cellular network 2005-11 for 35 projects. Sales over the ments,” said a former diplomat who was last year Huawei’s model was one of scale that
Days later, the company revealed a For example, Huawei set up shop in antenna at period hit $145bn. among those warning of the risks of relied on recycling income into R&D, on
deal with Altice for 5G in Portugal. Last Africa years before it won a UK contract Huawei, which Its fans and critics alike said that Hua- adopting Huawei equipment in the UK. $145bn which it was on course to spend $16bn,
week, T-Mobile launched a 5G network that was a beachhead for more deals in fans and critics wei won share by providing reliable Advisers to Huawei said its position Sales over the or 15 per cent of sales, this year, said Vin-
using Huawei equipment in Poland. Europe, and now claims to partner with alike say has technology and post-sales service, as was helped by its influence in research period 2005-11 cent Peng, president of Huawei in west-
Malta and Papua New Guinea have in customers throughout the continent. won share by well as competitive pricing. and development and boots on the ern Europe.
recent days disregarded the concerns of In developing markets, its critics say offering reliable “We run into them all over the world,” ground. Rivals such as Ericsson 170 Analysts said developing markets
the US and its allies, pledging to con- Huawei is backed by Beijing. In Septem- tech and service an executive at a US rival. “And the and Nokia, said one tech lawyer, might Countries in which
were likely to stick with Huawei.
tinue to use Huawei for their networks. ber, for example, China Exim Bank lent as well as way they win business is they charge be able to sell kit in far-flung markets the group operates “We do not expect African govern-
The deals show that Huawei remains Nigeria $328m to improve its telecoms competitive 10-20 cents in the dollar. Don’t get me but were less willing to have teams of ments to bow down to US pressure to
a big supplier in many parts of infrastructure with Huawei kit. prices wrong — they are formidable in the mar- technicians ready to to fix glitches and keep Chinese telecoms players out of
the world, even after the likes of Aus- “Huawei could not become as strong ketplace. But we all have to make maintain the service. any potential 5G rollouts or 4G network
tralia, New Zealand and Japan have as it is without the government’s com- money somehow, and two or three years Huawei has funded universities, upgrades,” said Kenny Liew at Fitch
pulled away. plete support,” said the former head of a down the road they are figuring out including the University of Surrey 5G Solutions. “Operators will definitely be
The company has grown from the Huawei supplier. “They provided a ways to do it.” Innovation Centre, and standards bod- keen to slash costs where possible [for
developing periphery before expanding practically unlimited budget.” In Europe the dynamics might be ies, from its large research budget. It has 5G], and one area is to adopt cost-effec-
into core developed markets, and has Huawei said it used only $3bn of a more subtle but the method is similar. five chairmen and vice-chairmen on the tive Chinese telecoms equipment.”

Legal Notices Industrials

Hitachi to buy 80% of ABB’s power grids arm

KANA INAGAKI — TOKYO The ABB deal follows Hitachi’s acqui- may be possible for us to freeze the
RALPH ATKINS — ZURICH
sition of rail assets in Italy. It has also project,” he added, saying no final deci-
Hitachi is buying an 80 per cent stake sold less profitable divisions to focus on sion had been reached.
in ABB’s power grids unit for $6.4bn, its certain business lines, such as its power At a separate news conference,
largest-ever overseas acquisition, as it grids business. The company said it Hitachi’s chairman, Hiroaki Nakanishi,
seeks to become a global industrial wants to increase revenue from its said the proposed “tripartite” share-
powerhouse and its Swiss rival focuses power grids business by 60 per cent to holding structure, which would see the
on digital and robotics businesses. ¥120bn ($1bn) in three years. UK and Japanese governments take
Analysts say the latest acquisition, equity stakes alongside Hitachi, was
ABB will initially retain a 19.9 per cent however, raises further questions about looking increasingly difficult.
stake in the divested unit, valued at The official announcement of the ABB
$11bn, including debt. Proceeds of deal came after the Financial Times
$7.6bn to $7.8bn will be returned to ABB
‘This is a good acquisition reported that the two companies had
shareholders through share buybacks. to ensure our position as been talking privately and that negotia-
The Swiss group also announced tions were fairly advanced.
restructuring measures to boost per-
a global leader’ Two years ago, Ulrich Spiesshofer,
formance — its shares have fallen almost Toshiaki Higashihara, Hitachi ABB’s chief executive, resisted calls for a
25 per cent over the past year. break-up of the group from Cevian, the
The deal, which is expected to close a £15bn nuclear power station it is European activist investor that owns a 5
by the first half of 2020, will bolster developing in Wales. per cent stake. At the time, ABB argued
Hitachi’s ambitions to join the ranks of “If Hitachi cannot secure the prereq- that the power grids business would be
global industrial groups such as General uisite financing arrangements and hard turned around under its ownership.
Electric and Siemens. commitments by the UK government, I Since then, the performance of the
“This is a good acquisition to ensure cannot see how they can proceed with business has improved and Mr Spiess-
our position as a global leader,” said the project,” said Macquarie analyst hofer told journalists yesterday that it
Toshiaki Higashihara, Hitachi’s chief Damian Thong. was “the right time” to divest. The unit
executive. In response to recent media reports reported pre-tax operating profits of
Hitachi, which has had a joint venture that Hitachi might freeze the Wylfa $972m last year on revenues of $10.4bn.
with ABB in Japan since 2015, plans to Newydd project, Mr Higashihara said Mr Spiesshofer said that by returning
convert ABB’s power grids division into there were limits to how much risk the the proceeds, the group would enable
a fully owned subsidiary in four years, company can take. shareholders to “participate in the
and will fund the deal using cash and “We will go ahead with the project if it results of their patience”.
bank loans. makes economic sense, but otherwise it See Lex

Travel & leisure

China’s Ctrip counts cost of trade war upheaval

TOM HANCOCK — SHANGHAI analyst at Phocuswright, a travel indus- trips to foreign countries cool off,”
try consultancy. according to a report by Gavekal Drago-
China’s largest online travel agent has
In the first six months of 2018, 80m nomics, a consultancy.
been caught out by the country’s trade
border crossings were made by Chinese Ms Sun said the impact was felt most
war with the US, which has hit con-
passport holders, up 16 per cent from keenly on trips to western destinations.
sumer spending on outbound trips and
the same period last year, according to “[Consumers] might not travel to
Financial contributed to a $6bn fall in US-
the China Outbound Tourism Research Europe but they will travel to Asia, or
listed Ctrip’s valuation this year,
Institute. But the institute projects that within China,” she said.
according to its chief executive.
rate of growth to have slowed in the sec- With close to half of Chinese travel
“The trade war caught many companies ond half of this year. ticket sales and nearly 40 per cent of
in China by surprise; nobody was really Chinese consumers’ spending power hotel bookings made online, internet
prepared,” Jane Sun told the Financial overseas has been eroded by a weaken- travel agents are “past the sweet spot” of
Times. “The trade war affects confi- ing currency, with the renminbi this rapid user growth, according to UBS.
dence in both countries.” year hitting its lowest level against the Analysts at Daiwa Securities expect
Ctrip and 45 per cent-owned affili- US dollar for a decade. “macro headwinds” and the increasing
ate Qunar together account for more “The depreciation of the renminbi cost of serving customers to weigh on
than half of China’s online travel mar- weakened tourists’ purchasing power Ctrip’s margins.
ket, a fast-growing sector but one that abroad. Visits by mainlanders to Hong However, Ms Sun said she expected
has slowed this year as consumer senti- Kong and Macau have also picked up as revenue growth, which was 18 per cent
ment has weakened. “When the stock last quarter, to stay strong even though
market is tanking people don’t have the profits are growing more slowly. She
confidence to spend,” Ms Sun said. said Ctrip would not change its strategy,
Shares in Nasdaq-listed Ctrip, which which includes investing in initiatives
Businesses has a stock market valuation of $15.8bn,
fell 19 per cent last month in their big-
such as chatbots enabled by artificial
intelligence to handle customer queries,
For Sale gest one-day drop for five years after the
company forecast an operating profit
and said the company would keep head-
count stable next year to control costs.
margin of less than 1 per cent for this Economists expect Beijing to intro-
Business for Sale, Business Opportunities, year — down from 11 per cent last year — duce more stimulus in 2019, with fiscal
Business Services, because of macroeconomic weakness spending on infrastructure intended to
Business Wanted, Franchises and higher spending on marketing. sustain growth above 6 per cent.
Runs Daily
.............................................................................................................................
“In the face of slowing economic “If GDP is growing 5 to 6 per cent,
Classified Business Advertising growth, we expect international trips to travel will be 8 or 9 [per cent] and we
UK: +44 20 7873 4000 | Email: be curtailed somewhat, and for some of will be double that,” Ms Sun said. “In the
[email protected] those trips to be replaced by travel Jane Sun: Ctrip chief says a weaker long run there is a lot of room for China
within China,” said Maggie Rauch, an currency is curbing trips abroad to grow.”
Tuesday 18 December 2018 ★ FINANCIAL TIMES 15

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.07% -0.14% -1.05% -1.15% -0.03% -0.29% -0.366% -0.111% -0.60%

0.16% 0.62% 0.354% 0.398% 1.00%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Nov 18 - - Index All World Nov 18 - Dec 17 Index All World Nov 18 - Dec 17 Index All World Nov 18 - Dec 17 Index All World Nov 18 - Dec 17 Index All World Nov 18 - Dec 17 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul

2,701.58 15,155.50 7,013.88 11,341.00 2,092.40

21,803.62 21,506.88 2,071.09
6,773.24
2,598.19 14,516.02 10,772.20
Day -0.07% Month -5.07% Year -2.92% Day -0.54% Month -4.23% Year -9.52% Day -1.05% Month -3.29% Year -9.45% Day -0.86% Month 1.41% Year NaN% Day 0.62% Month -0.80% Year -4.64% Day 0.08% Month -1.02% Year -16.56%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
1,409.22 9,056.80 3,083.60 3,114.25
42,343.96
7,136.39 41,195.74 26,183.53 26,087.98
1,355.76 8,812.50
6,922.04
Day 0.16% Month -4.54% Year -0.25% Day -0.28% Month -2.62% Year -14.29% Day -1.15% Month -3.65% Year -11.15% Day NaN% Month NaN% Year NaN% Day -0.03% Month 2.01% Year -9.47% Day 1.21% Month 0.99% Year -8.87%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
36,270.07
5,025.20
25,080.50 87,284.42 18,878.31 2,679.11 35,260.54
85,973.06 18,693.45
24,067.29 4,799.87 2,597.97
Day -0.14% Month -5.36% Year -2.44% Day -0.19% Month -1.40% Year 20.21% Day -1.11% Month -4.48% Year -10.27% Day -1.15% Month -0.75% Year -15.19% Day 0.16% Month -2.93% Year -20.46% Day 0.85% Month 2.29% Year 8.39%

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 30453.15 31109.45 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 20479.86 20740.61 Philippines Manila Comp 7520.40 7524.37 Taiwan Weighted Pr 9787.53 9774.16 Cross-Border DJ Global Titans ($) 291.08 291.36
Australia All Ordinaries 5732.90 5678.80 Czech RepublicPX 1027.87 1028.40 FTSE Italia Mid Cap 33887.85 34628.05 Poland Wig 58197.08 58780.55 Thailand Bangkok SET 1601.48 1609.45 Euro Stoxx 50 (Eur) 3066.15 3092.60
S&P/ASX 200 5658.30 5602.00 Denmark OMXC Copenahgen 20 925.96 935.84 FTSE MIB 18693.45 18910.79 Portugal PSI 20 4730.62 4803.42 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 932.09 943.27
S&P/ASX 200 Res 4043.40 3961.30 Egypt EGX 30 13215.40 12992.06 Japan 2nd Section 6765.77 6784.87 PSI General 2768.38 2809.95 UAE Abu Dhabi General Index 4831.14 4861.53 FTSE 4Good Global ($) 6266.27 6284.55
Austria ATX 2862.87 2911.96 Estonia OMX Tallinn 1188.13 1192.55 Nikkei 225 21506.88 21374.83 Romania BET Index 8524.69 8574.48 UK FT 30 2807.80 2822.20 FTSE All World ($) 308.47 309.38
Belgium BEL 20 3331.26 3384.29 Finland OMX Helsinki General 8980.19 9046.55 S&P Topix 150 1303.62 1299.52 Russia Micex Index 2359.13 2365.69 FTSE 100 6773.24 6845.17 FTSE E300 1355.76 1371.54
BEL Mid 6543.67 6597.55 France CAC 40 4799.87 4853.69 Topix 1594.20 1592.16 RTX 1113.44 1116.50 FTSE 4Good UK 6157.11 6227.60 FTSE Eurotop 100 2635.69 2664.69
Brazil Bovespa 87284.42 87449.50 SBF 120 3812.18 3857.71 Jordan Amman SE 1863.29 1843.02 Saudi-Arabia TADAWUL All Share Index 7968.26 7908.07 FTSE All Share 3692.57 3732.96 FTSE Global 100 ($) 1596.73 1601.49
Canada S&P/TSX 60 874.51 878.92 Germany M-DAX 21915.28 22281.45 Kenya NSE 20 2759.18 2762.34 Singapore FTSE Straits Times 3114.25 3077.09 FTSE techMARK 100 4320.47 4385.15 FTSE Gold Min ($) 1292.61 1320.34
S&P/TSX Comp 14516.02 14595.07 TecDAX 2497.95 2519.83 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 334.99 334.04 USA DJ Composite 7983.99 8010.05 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 862.74 876.66 XETRA Dax 10772.20 10865.77 Latvia OMX Riga 950.94 963.53 Slovenia SBI TOP 797.02 797.29 DJ Industrial 24067.29 24100.51 FTSE Multinationals ($) 1804.94 1840.56
Chile S&P/CLX IGPA Gen 25955.15 26211.19 Greece Athens Gen 632.04 645.24 Lithuania OMX Vilnius 625.33 630.30 South Africa FTSE/JSE All Share 51560.47 51744.16 DJ Transport 9517.73 9514.11 FTSE World ($) 547.05 548.69
China FTSE A200 8393.45 8402.52 FTSE/ASE 20 1664.07 1699.55 Luxembourg LuxX 1362.40 1380.21 FTSE/JSE Res 20 39656.63 39583.95 DJ Utilities 745.62 757.85 FTSEurofirst 100 (Eur) 3785.56 3824.51
FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 26087.98 26094.79 Malaysia FTSE Bursa KLCI 1641.62 1661.96 FTSE/JSE Top 40 45528.87 45639.00 Nasdaq 100 6609.54 6594.96 FTSEurofirst 80 (Eur) 4272.22 4319.29
Shanghai A 2720.47 2716.00 HS China Enterprise 10351.81 10359.43 Mexico IPC 41195.74 41312.17 South Korea Kospi 2071.09 2069.38 Nasdaq Cmp 6922.04 6910.67 MSCI ACWI Fr ($) 468.51 476.07
Shanghai B 278.74 279.40 HSCC Red Chip 4296.74 4314.07 Morocco MASI 11143.73 11237.51 Kospi 200 266.33 265.55 NYSE Comp 11737.37 11755.38 MSCI All World ($) 1942.55 1974.41
Shanghai Comp 2597.97 2593.74 Hungary Bux 39675.76 40125.72 Netherlands AEX 500.08 506.53 Spain IBEX 35 8812.50 8886.10 S&P 500 2598.19 2599.95 MSCI Europe (Eur) 1446.50 1456.07
Shenzhen A 1383.74 1388.03 India BSE Sensex 36270.07 35962.93 AEX All Share 734.96 743.90 Sri Lanka CSE All Share 6067.63 6062.55 Wilshire 5000 26728.33 26749.34 MSCI Pacific ($) 2501.55 2535.64
Shenzhen B 853.91 856.27 Nifty 500 9153.95 9091.30 New Zealand NZX 50 8745.59 8722.51 Sweden OMX Stockholm 30 1451.95 1471.67 Venezuela IBC 747.53 745.22 S&P Euro (Eur) 1423.61 1439.02
Colombia COLCAP 1359.31 1365.35 Indonesia Jakarta Comp 6089.31 6169.84 Nigeria SE All Share 30672.79 30568.05 OMX Stockholm AS 538.31 545.09 Vietnam VNI 933.65 952.04 S&P Europe 350 (Eur) 1392.35 1408.12
Croatia CROBEX 1744.58 1734.00 Ireland ISEQ Overall 5470.72 5519.26 Norway Oslo All Share 925.36 939.04 Switzerland SMI Index 8602.61 8713.68 S&P Global 1200 ($) 2161.95 2164.95
Israel Tel Aviv 125 1415.69 1441.70 Pakistan KSE 100 38309.17 38307.44 Stoxx 50 (Eur) 2819.64 2844.81
(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 Dec 17 %Chg %Chg Dec 17 %Chg %Chg Dec 17 %Chg %Chg Dec 17 %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 54.6 1568.87 -23.04 Shire 551.7 4532.50 -140.50 Telefonica 333.7 7.83 0.04 Softbank . 699.3 8540.00 44.00 Gvc Holdings 686.00 9.0 -27.4 Indivior 94.92 24.0 -76.4 Interserve 14.11 22.7 -85.8 Mining 17129.69 6.8 -8.3
Apple 26.3 168.04 2.56 Bhp 153.2 1659.80 43.20 Adidas Ag Na O.n. 328.2 186.85 -8.65 Takeda Pharmaceutical 407.8 3943.00 -38.00 Bhp 1659.80 8.5 8.6 Serco 97.00 15.3 -1.5 Sportech 38.00 16.6 -52.5 Construction & Materials 4825.16 4.0 -
Johnson & Johnson 23.7 129.27 -3.73 Glaxosmithkline 147.8 1467.60 -12.40 Total 303.6 48.62 -0.48 Familymart Co., 387.4 17610.00 1000.00 Anglo American 1707.60 8.4 7.1 Hikma Pharmaceuticals 1882.50 9.9 69.9 Carpetright 19.00 16.2 -54.5 Media 7720.60 2.9 2.5
Microsoft 12.6 105.33 -0.70 Diageo 126.8 2809.00 -16.00 Royal Dutch Shella 241.3 25.83 -0.24 Toyota Motor 353.1 6840.00 11.00 Wpp 870.80 8.2 -34.8 Kier 409.80 8.9 -61.5 Restaurant 143.20 11.4 -33.6 Gas Water & Multiutilities 4876.78 2.8 -5.5
Netflix 11.1 271.09 4.25 Rio Tinto 122.3 3762.50 87.00 Bayer Ag Na O.n. 215.8 64.00 0.64 Fast Retailing Co., 297.8 60990.00 220.00 Antofagasta 796.00 7.6 -20.5 Sig 111.00 8.6 -37.0 Stv 350.00 8.4 6.1 Aerospace & Defense 4316.32 2.7 -
Nvidia 9.4 147.75 1.30 Royal Dutch Shell 120.8 2322.00 -20.50 Sap Se O.n. 213.6 88.66 -1.28 Mitsubishi Ufj Fin,. 240.3 583.90 0.80 Just Eat 579.00 7.1 -25.5 888 Holdings 166.80 8.4 -40.0 Independent Investment Trust 504.00 8.2 -23.5 General Industrials 5005.43 2.4 -
Advanced Micro Devices 9.0 19.80 -0.10 Astrazeneca 110.3 6043.00 -87.00 Allianz Se Na O.n. 196.1 175.28 -1.56 Sony 209.6 5839.00 -16.00 Glencore 292.95 6.7 -25.7 G4s 190.40 8.3 -27.5 Kcom 66.80 8.1 -26.0 Support Services 7173.56 2.2 -
Facebook 8.9 144.44 0.38 Vodafone 103.8 160.70 0.02 Siemens Ag Na 195.3 99.58 -0.62 Sumitomo Mitsui Fin,. 200.7 3939.00 22.00 Rio Tinto 3762.50 6.7 -5.7 Rhi Magnesita N.v. 3662.00 8.2 -4.6 Reach 62.50 7.8 -21.8 Travel & Leisure 8908.95 1.4 -
Bank Of America 8.4 24.86 0.38 Bp 102.4 508.60 -4.10 Hennes & Mauritz Ab, H & M Ser. B 187.1 13.93 -1.30 Showa Denko K.k. 183.6 3785.00 -5.00 Rolls-royce Holdings 807.80 6.4 -4.1 Balfour Beatty 250.00 7.5 -15.3 Foxtons 52.00 7.7 -37.3 Mobile Telecommunications 3567.21 1.3 -
J P Morgan Chase & Co 8.0 100.15 -0.14 Hsbc Holdings 100.5 648.80 -4.70 Inditex 185.2 23.60 -0.95 Nippon Telegraph And Telephone 176.4 4727.00 31.00 Melrose Industries 155.10 6.0 -26.6 John Laing 321.20 7.1 17.4 Arrow Global 188.40 7.7 -52.0 General Financial 9090.34 1.1 -
Standard Life Aberdeen 240.90 5.1 -50.4 Jpmorgan Indian Investment Trust 679.00 7.1 -9.8 Discoverie 389.00 7.5 4.6 Electricity 6451.38 1.0 -16.3
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
Rentokil Initial 330.90 4.7 7.6 Aggreko 734.40 6.2 -5.8 Robert Walters 514.00 7.1 -11.4 Industrial Metals 4336.78 0.9 13.3
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Alexion Pharmaceuticals 113.78 4.35 3.97 Superdry 430.80 25.80 6.37 Kerry Grp A Eo-,125 91.50 1.70 1.89 Familymart Co., 17610.00 1000.00 6.02 Wood (john) 534.00 -13.0 -18.4 Superdry 430.80 -30.3 -78.2 Low & Bonar 16.50 -22.9 -68.9 Oil Equipment & Services 10689.24 -9.7 -
Applied Materials 33.73 1.08 3.31 Talktalk Telecom 121.50 4.50 3.85 Brenntag Ag Na O.n. 37.46 0.46 1.24 Nippon Meat Packers,. 4335.00 185.00 4.46 Next 4137.00 -10.4 -8.1 Dunelm 482.80 -15.3 -29.2 Brown (n) 93.50 -19.7 -64.9 General Retailers 1864.91 -6.0 -
Stanley Black & Decker 122.24 3.88 3.28 Stobart Ld 155.60 4.80 3.18 Relx 20.37 0.22 1.08 Keio 6640.00 270.00 4.24 Sainsbury (j) 264.30 -10.3 9.6 Sports Direct Int 234.00 -12.8 -39.0 Mccoll's Retail 54.00 -18.2 -79.5 Food & Drug Retailers 3303.50 -3.5 1.5
Leggett & Platt 37.26 1.10 3.04 Bhp 1659.80 43.20 2.67 Bayer Ag Na O.n. 64.00 0.64 1.01 Thb Kansai Electric Power ,orporated 1814.50 70.00 4.01 Marks And Spencer 251.30 -8.9 -20.5 Plus500 Ltd 1292.00 -11.3 46.6 River And Mercantile 245.00 -11.6 -31.6 Tobacco 30964.10 -2.9 -
Freeport-mcmoran 10.88 0.31 2.89 Ted Baker 1512.00 39.00 2.65 Iberdrola 7.10 0.07 0.97 Tokyo Electric Power ,orporated 763.00 22.00 2.97 Nmc Health 2910.00 -7.3 1.5 B&m Eur Value Retail S.a. 285.20 -9.9 -31.5 Circassia Pharmaceuticals 59.00 -10.6 -40.1 Automobiles & Parts 6672.60 -2.5 -9.9
Kingfisher 216.00 -6.3 -37.1 Just 88.20 -9.8 -46.6 Debenhams 4.97 -10.4 -85.9 Forestry & Paper 17831.88 -2.4 -
Downs Downs Downs Downs
Randgold Resources Ld 6674.00 -4.9 -10.4 Dixons Carphone 134.95 -9.4 -33.5 Capital & Regional 31.75 -8.0 -45.4 Food Producers 6536.72 -2.4 -
Xerox 23.12 -1.34 -5.46 Dunelm 482.80 -57.70 -10.68 Hennes & Mauritz Ab, H & M Ser. B 13.93 -1.30 -8.53 Chiyoda 312.00 -19.00 -5.74
Royal Mail 284.90 -4.0 -37.4 Stagecoach 142.50 -9.1 -14.3 Dfs Furniture 184.60 -7.7 -7.1 Electronic & Electrical Equip. 5991.96 -2.1 -8.6
Pacific Gas & Electric Co 24.63 -1.38 -5.31 Jd Sports Fashion 330.10 -25.30 -7.12 Saipem 3.28 -0.23 -6.55 Ube Industries, 2356.00 -71.00 -2.93
Micro Focus Int 1408.00 -3.6 -43.4 Moneysupermarket.com 267.00 -8.4 -25.6 Clipper Logistics 221.00 -7.5 -52.5 Real Estate & Investment Servic 2340.20 -1.8 -
Westrock 42.05 -2.32 -5.23 Equiniti 196.80 -14.20 -6.73 Adidas Ag Na O.n. 186.85 -8.65 -4.42 Daiichi Sankyo , 4047.00 -119.00 -2.86
British American Tobacco 2628.00 -3.4 -46.8 Halfords 257.20 -8.3 -27.3 Enquest 21.00 -7.5 -17.0 Industrial Transportation 2147.82 -1.7 -
Centene 120.89 -6.64 -5.21 Games Workshop 2855.00 -200.00 -6.55 Commerzbank Ag 6.36 -0.28 -4.19 Oki Electric Industry , 1315.00 -38.00 -2.81
Tesco 190.25 -3.2 -8.8 Premier Oil 65.00 -8.2 -14.9 Dp Eurasia N.v. 106.80 -7.1 -50.2 Health Care Equip.& Services 6975.23 -1.4 -7.8
Packaging Of America 89.10 -4.34 -4.64 Galliford Try 569.00 -38.50 -6.34 Kinnevik Ab Ser. B 20.73 -0.89 -4.11 Showa Shell Sekiyu K.k. 1540.00 -40.00 -2.53
Mondi 1584.00 -2.5 -18.1 Renishaw 3796.00 -8.0 -26.7 Alfa Fin Software Holdings 104.40 -6.8 -80.7 Nonlife Insurance 2989.69 -0.8 -7.0
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
Dec 17 Currency Mid Change Mid Change Mid Change Dec 17 Currency Mid Change Mid Change Mid Change Dec 17 Currency Mid Change Mid Change Mid Change Dec 17 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 38.2750 0.0200 43.3903 0.1716 48.2685 0.2221 Indonesia Indonesian Rupiah 14577.5000 -7.5000 16525.7297 48.2791 18383.6709 65.6331 Poland Polish Zloty 3.7756 -0.0237 4.2802 -0.0120 4.7614 -0.0103 ..Three Month 0.7935 -0.0033 0.8986 -0.0006 - -
Australia Australian Dollar 1.3927 -0.0014 1.5788 0.0039 1.7563 0.0055 Israel Israeli Shekel 3.7672 -0.0045 4.2707 0.0096 4.7508 0.0138 Romania Romanian Leu 4.1010 -0.0220 4.6491 -0.0089 5.1718 -0.0066 ..One Year 0.7952 -0.0033 0.8976 -0.0006 - -
Bahrain Bahrainin Dinar 0.3770 - 0.4274 0.0015 0.4754 0.0019 Japan Japanese Yen 113.0000 -0.4150 128.1019 -0.0289 142.5040 0.0605 Russia Russian Ruble 66.7007 -0.0263 75.6149 0.2300 84.1160 0.3104 United States United States Dollar - - 1.1336 0.0039 1.2611 0.0051
Bolivia Bolivian Boliviano 6.9100 - 7.8335 0.0269 8.7142 0.0356 ..One Month 112.9996 -0.4158 128.1019 -0.0290 142.5038 0.0600 Saudi Arabia Saudi Riyal 3.7508 -0.0003 4.2521 0.0143 4.7301 0.0190 ..One Month - - 1.1333 -0.1223 1.2613 0.0052
Brazil Brazilian Real 3.9095 0.0169 4.4320 0.0344 4.9303 0.0414 ..Three Month 112.9991 -0.4168 128.1019 -0.0289 142.5036 0.0595 Singapore Singapore Dollar 1.3739 -0.0031 1.5575 0.0018 1.7326 0.0032 ..Three Month - - 1.1327 -0.1223 1.2617 0.0051
Canada Canadian Dollar 1.3378 0.0006 1.5165 0.0059 1.6870 0.0076 ..One Year 112.9965 -0.4220 128.1020 -0.0287 142.5038 0.0583 South Africa South African Rand 14.3969 -0.0144 16.3210 0.0398 18.1559 0.0561 ..One Year - - 1.1299 -0.1223 1.2634 0.0051
Chile Chilean Peso 687.2200 -0.1150 779.0639 2.5457 866.6515 3.3931 Kenya Kenyan Shilling 102.5000 - 116.1987 0.3991 129.2625 0.5276 South Korea South Korean Won 1131.4000 0.6500 1282.6066 5.1394 1426.8061 6.6404 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 6.9008 0.0025 7.8231 0.0297 8.7026 0.0387 Kuwait Kuwaiti Dinar 0.3043 -0.0003 0.3449 0.0008 0.3837 0.0012 Sweden Swedish Krona 9.0418 -0.0250 10.2501 0.0069 11.4025 0.0151 Vietnam Vietnamese Dong 23319.0000 31.0000 26435.5145 125.8178 29407.6130 159.0382
Colombia Colombian Peso 3189.5350 -8.2400 3615.8022 3.1089 4022.3158 6.0693 Malaysia Malaysian Ringgit 4.1810 -0.0045 4.7398 0.0112 5.2726 0.0159 Switzerland Swiss Franc 0.9942 -0.0023 1.1271 0.0013 1.2538 0.0022 European Union Euro 0.8821 -0.0030 - - 1.1124 0.0007
Costa Rica Costa Rican Colon 595.9500 -1.5800 675.5960 0.5353 751.5512 1.0833 Mexico Mexican Peson 20.0973 -0.2403 22.7832 -0.1932 25.3446 -0.1983 Taiwan New Taiwan Dollar 30.8665 -0.0020 34.9917 0.1179 38.9257 0.1564 ..One Month 0.8817 -0.0031 - - 1.1123 0.0007
Czech Republic Czech Koruna 22.7332 -0.0904 25.7714 -0.0137 28.6688 0.0034 New Zealand New Zealand Dollar 1.4701 - 1.6665 0.0057 1.8539 0.0076 Thailand Thai Baht 32.7850 -0.0100 37.1666 0.1163 41.3451 0.1562 ..Three Month 0.8812 -0.0030 - - 1.1121 0.0007
Denmark Danish Krone 6.5870 -0.0214 7.4673 0.0015 8.3069 0.0070 Nigeria Nigerian Naira 363.0000 - 411.5133 1.4133 457.7785 1.8686 Tunisia Tunisian Dinar 2.9809 -0.0056 3.3793 0.0052 3.7592 0.0082 ..One Year 0.8784 -0.0030 - - 1.1111 0.0007
Egypt Egyptian Pound 17.9150 -0.0195 20.3093 0.0477 22.5926 0.0677 Norway Norwegian Krone 8.6257 0.0037 9.7785 0.0378 10.8779 0.0491 Turkey Turkish Lira 5.3890 0.0134 6.1092 0.0361 6.7960 0.0446
Hong Kong Hong Kong Dollar 7.8120 0.0019 8.8561 0.0326 9.8518 0.0426 Pakistan Pakistani Rupee 138.8700 0.0200 157.4293 0.5633 175.1286 0.7400 United Arab Emirates UAE Dirham 3.6732 - 4.1640 0.0143 4.6322 0.0189
Hungary Hungarian Forint 285.0087 -1.4795 323.0988 -0.5618 359.4237 -0.3911 Peru Peruvian Nuevo Sol 3.3425 -0.0110 3.7892 0.0006 4.2152 0.0034 United Kingdom Pound Sterling 0.7930 -0.0032 0.8989 -0.0006 - -
India Indian Rupee 71.5800 -0.2852 81.1463 -0.0436 90.2694 0.0102 Philippines Philippine Peso 52.9825 0.0900 60.0634 0.3080 66.8161 0.3858 ..One Month 0.7932 -0.0032 0.8988 -0.0006 - -
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 Dec 17 Dec 14 Dec 13 Dec 12 Dec 11 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2807.80 2822.20 2836.30 2801.30 2773.80 0.00 3384.10 2766.70 Tech Hardware & Eq 32.39 Leisure Goods -8.41 Industrials -15.08 FTSE 100 Price Change FTSE 100 Price Change
Dec 17 chge% Index Dec 14 Dec 13 ago yield% Cover ratio adj Return FT 30 Div Yield 2.12 2.11 2.10 2.11 2.14 0.00 3.93 2.74 Pharmace & Biotech 14.63 Chemicals -9.17 Financials -15.98 3I Group PLC 764.00 -15.60 London Stock Exchange Group PLC 4020 -20.00
FTSE 100 (100) 6773.24 -1.05 5864.59 6845.17 6877.50 7537.01 4.51 1.96 11.31 302.84 5984.36 P/E Ratio net 21.06 21.18 21.29 21.12 20.89 0.00 19.44 14.26 Industrial Metals & 12.89 Basic Materials -9.69 Industrial Eng -16.58 Admiral Group PLC 1959.5 -21.00 Marks And Spencer Group PLC 251.30 -12.10
FTSE 250 (250) 17416.96 -1.41 15080.43 17666.91 17818.56 20255.40 3.36 2.05 14.53 530.10 13149.52 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Health Care 12.08 Automobiles & Parts -9.95 Financial Services -17.00 Anglo American PLC 1707.6 13.20 Melrose Industries PLC 155.10 -4.30
FTSE 250 ex Inv Co (196) 18235.39 -1.54 15789.07 18520.68 18701.77 21719.78 3.57 1.84 15.22 580.78 14057.68 FT 30 hourly changes Beverages 3.37 NON FINANCIALS Index -9.96 Real Est Invest & Se -17.46 Antofagasta PLC 796.00 18.00 Micro Focus International PLC 1408 -54.50
FTSE 350 (350) 3740.30 -1.11 3238.53 3782.20 3802.36 4190.89 4.33 1.97 11.72 158.59 6617.29 8 9 10 11 12 13 14 15 16 High Low Food & Drug Retailer 3.13 Mining -9.98 Banks -18.74 Ashtead Group PLC 1653.5 -66.50 Mondi PLC 1584 -48.00
FTSE 350 ex Investment Trusts (295) 3697.76 -1.11 3201.70 3739.37 3759.52 4154.26 4.40 1.93 11.77 159.24 3372.48 2822.2 2782.8 2787.4 2795.7 2799.9 2803.2 2808.7 2813.7 2808.8 2822.2 2778.2 Media 1.99 Electronic & Elec Eq -10.12 Food Producers -19.12 Associated British Foods PLC 2110 -70.00 Morrison (Wm) Supermarkets PLC 221.00 -4.85
FTSE 350 Higher Yield (103) 3425.22 -0.80 2965.72 3452.96 3470.83 3855.13 5.91 1.77 9.55 193.81 6472.65 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Personal Goods 0.98 Support Services -10.16 Household Goods & Ho -19.12 Astrazeneca PLC 6043 -87.00 National Grid PLC 835.30 -8.20
FTSE 350 Lower Yield (247) 3705.50 -1.45 3208.39 3760.11 3780.80 4132.43 2.53 2.50 15.81 98.72 4197.02 Equity Invest Instr -4.02 FTSE 100 Index -10.96 Consumer Goods -19.79 Aviva PLC 368.50 -8.50 Next PLC 4137 -201.00
FTSE SmallCap (283) 5188.58 -0.39 4492.52 5208.80 5228.91 5793.83 3.75 1.82 14.65 184.70 7775.80 Oil & Gas Producers -4.80 Travel & Leisure -11.08 Technology -23.70
FTSE SmallCap ex Inv Co (157) 4258.96 -0.61 3687.61 4285.07 4284.86 5029.14 4.04 1.53 16.17 162.20 6716.18 FX: EFFECTIVE INDICES Gas Water & Multi -4.82 Aerospace & Defense -11.32 General Retailers -23.84
Bae Systems PLC 454.90 -1.20 Nmc Health PLC 2910 -152.00
Barclays PLC 152.84 -5.60 Ocado Group PLC 779.20 -35.80
FTSE All-Share (633) 3692.57 -1.08 3197.20 3732.96 3752.66 4136.81 4.31 1.97 11.80 155.65 6602.82 Oil & Gas -4.97 FTSE All{HY-}Share Index -11.58 Life Insurance -24.39
Dec 14 Dec 13 Mnth Ago Dec 17 Dec 14 Mnth Ago Barratt Developments PLC 434.00 -6.50 Paddy Power Betfair PLC 6475 -130.00
FTSE All-Share ex Inv Co (452) 3624.68 -1.10 3138.42 3665.08 3684.43 4076.50 4.39 1.92 11.84 155.76 3359.00 Nonlife Insurance -6.24 Forestry & Paper -11.67 Telecommunications -24.60 Berkeley Group Holdings (The) PLC 3319 -113.00 Pearson PLC 940.00 -5.80
FTSE All-Share ex Multinationals (563) 1057.34 -1.54 758.78 1073.84 1080.13 1255.43 4.29 1.60 14.59 42.79 1988.91 Australia - - - Sweden - - - Utilities -6.99 FTSE SmallCap Index -11.89 Construct & Material -25.22 Bhp Group PLC 1659.8 43.20 Persimmon PLC 1859.5 -37.50
FTSE Fledgling (97) 10051.66 -0.77 8703.20 10129.74 10160.29 10790.46 3.29 1.55 19.63 282.40 19590.54 Canada - - - Switzerland - - - Health Care Eq & Srv -7.35 Oil Equipment & Serv -12.88 Software & Comp Serv -26.31 BP PLC 508.60 -4.10 Prudential PLC 1394 -21.50
FTSE Fledgling ex Inv Co (48) 14613.51 -0.79 12653.07 14729.21 14778.38 15309.38 3.80 -0.53 -49.94 477.32 27961.39 Denmark - - - UK 76.49 76.58 79.36 Consumer Services -7.58 Real Est Invest & Tr -13.58 Mobile Telecomms -31.06 British American Tobacco PLC 2628 -32.00 Randgold Resources LD 6674 -268.00
FTSE All-Small (380) 3624.63 -0.41 3138.38 3639.51 3653.39 4039.13 3.73 1.81 14.85 127.58 6970.73 Japan - - - USA - - - Fixed Line Telecomms -7.66 Electricity -14.31 Industrial Transport -32.97 British Land Company PLC 544.20 -14.00 Reckitt Benckiser Group PLC 6176 -88.00
FTSE All-Small ex Inv Co (205) 3216.59 -0.62 2785.07 3236.54 3236.83 3780.28 4.03 1.45 17.09 121.78 6426.01 New Zealand - - - Euro - - - FTSE 250 Index -14.76 Tobacco -42.43 Bt Group PLC 250.05 -1.50 Relx PLC 1639 10.00
FTSE AIM All-Share (803) 860.37 -3.01 744.95 887.05 888.88 1019.65 1.66 1.33 45.51 13.04 964.96 Norway - - -
Bunzl PLC 2388 -37.00 Rentokil Initial PLC 330.90 -1.10
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Burberry Group PLC 1710.5 -40.50 Rightmove PLC 433.00 -6.90
Oil & Gas (15) 8852.90 -0.95 7665.26 8937.38 8954.02 9173.69 5.57 1.23 14.62 493.65 8889.23 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Carnival PLC 4370 -1.00 Rio Tinto PLC 3762.5 87.00
Oil & Gas Producers (10) 8550.29 -0.87 7403.24 8625.13 8638.05 8839.82 5.59 1.24 14.46 478.77 8895.22 Centrica PLC 135.55 -2.45 Rolls-Royce Holdings PLC 807.80 -0.80
Oil Equipment Services & Distribution (5)11251.00 -4.91 9741.65 11832.47 12075.05 13082.34 4.40 0.61 37.36 487.46 9176.35 FTSE GLOBAL EQUITY INDEX SERIES Coca-Cola Hbc AG 2418 -44.00 Royal Bank Of Scotland Group PLC 208.20 -3.40
Basic Materials (28) 5764.13 1.03 4990.86 5705.13 5784.57 5986.47 4.99 2.42 8.28 287.69 6280.83 Compass Group PLC 1663.5 -19.50 Royal Dutch Shell PLC 2339 -19.00
Chemicals (8) 13477.31 -1.46 11669.30 13677.49 13928.11 14903.50 2.34 2.36 18.08 318.02 12423.73 Dec 14 No of US $ Day Mth YTD Total
YTD Gr Div Dec 14 No of US $ Day Mth YTD Total YTD Gr Div Crh PLC 2027 -10.00 Royal Dutch Shell PLC 2322 -20.50
Forestry & Paper (1) 19457.85 -2.94 16847.53 20047.49 20053.63 21826.31 3.60 3.13 8.88 700.08 22025.81 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Croda International PLC 4600 -91.00 Royal Mail PLC 284.90 -11.40
Industrial Metals & Mining (2) 4671.40 -0.21 4044.72 4681.04 4833.95 3982.52 14.92 1.45 4.62 691.01 5003.32 FTSE Global All Cap 7855 528.03 -1.6 -3.3 -7.2-9.3 776.49
2.6 Oil & Gas Producers 108 344.70 -1.6 -1.6 -8.4 598.21 -5.2 4.0 Dcc PLC 5920 -40.00 Rsa Insurance Group PLC 496.60 -10.00
Mining (17) 16357.32 1.51 14162.95 16114.12 16333.50 16866.62 5.14 2.46 7.91 840.82 9361.42 FTSE Global Large Cap 1439 469.40 -1.6 -3.0 -6.0-8.2 709.39
2.7 Oil Equipment & Services 33 238.28 -2.0 -2.0 -24.3 363.05 -21.6 4.6 Diageo PLC 2809 -16.00 Sage Group PLC 589.60 -6.60
FTSE Global Mid Cap 1764 693.61 -1.3 -4.2 -11.6 963.94
-9.9 2.4 Basic Materials 257 447.51 -1.2 -1.2 -17.9 711.73 -15.4 3.5 Direct Line Insurance Group PLC 304.90 -2.60 Sainsbury (J) PLC 264.30 -11.20
Industrials (104) 4616.32 -1.11 3997.03 4668.12 4707.84 5395.18 2.99 1.80 18.63 128.87 4930.82
Construction & Materials (15) 5070.58 -1.25 4390.35 5134.79 5137.47 6598.06 3.29 0.39 78.21 169.84 5579.18 FTSE Global Small Cap 4652 722.53 -1.4 -4.5 -11.1-12.6 969.41
2.2 Chemicals 119 662.43 -1.1 -1.1 -17.8 1052.13 -15.7 2.9 Easyjet PLC 1051.5 -50.50 Schroders PLC 2366 -23.00
Aerospace & Defense (9) 4491.28 -0.27 3888.76 4503.22 4527.30 5039.78 2.80 3.46 10.34 110.59 4965.87 FTSE All-World 3203 309.38 -1.6 -3.2 -6.7-8.8 480.98
2.7 Forestry & Paper 18 253.83 -0.5 -0.5 -17.6 449.50 -15.0 3.9 Evraz PLC 464.20 -0.20 Scottish Mortgage Investment Trust PLC 479.70 -8.65
General Industrials (8) 4042.10 -0.44 3499.84 4059.84 4103.61 5087.75 3.78 1.20 22.09 148.48 4807.12 FTSE World 2613 548.69 -1.6 -3.5 -6.3-8.4 1145.17
2.7 Industrial Metals & Mining 66 365.45 -1.1 -1.1 -25.1 580.79 -22.6 4.2 Experian PLC 1874.5 -21.00 Segro PLC 595.00 -8.60
Electronic & Electrical Equipment (10) 7176.00 -1.06 6213.32 7253.21 7318.72 8059.00 1.94 2.23 23.11 124.26 6709.94 FTSE Global All Cap ex UNITED KINGDOM In 7538 551.29 -1.6 -3.1 -6.7-8.7 797.24
2.5 Mining 54 572.68 -1.5 -1.5 -12.8 920.88 -9.0 4.3 Ferguson PLC 4885 -58.50 Severn Trent PLC 1870.5 -9.00
Industrial Engineering (11) 11277.90 -1.69 9764.94 11471.99 11723.39 13497.90 2.66 1.70 22.11 296.98 14186.82 FTSE Global All Cap ex USA 5999 445.67 -1.2 -2.7 -13.1-15.5 706.57
3.3 Industrials 577 358.92 -1.5 -1.5 -13.5 531.58 -11.8 2.3 Fresnillo PLC 819.00 -14.60 Shire PLC 4532.5 -140.50
Industrial Transportation (6) 3458.44 -2.24 2994.48 3537.76 3566.54 5207.66 6.29 0.78 20.27 210.23 3307.27 FTSE Global All Cap ex JAPAN 6518 540.84 -1.6 -3.4 -6.8-8.9 803.04
2.6 Construction & Materials 117 442.64 -1.0 -1.0 -20.4 684.78 -18.8 2.6 Glaxosmithkline PLC 1467.6 -12.40 Smith & Nephew PLC 1467 -18.50
Support Services (45) 6985.71 -1.34 6048.56 7080.46 7147.92 7732.26 2.76 1.98 18.32 177.38 7505.45 FTSE Global All Cap ex Eurozone 7171 550.73 -1.6 -3.2 -6.3-8.3 793.96
2.5 Aerospace & Defense 28 738.05 -1.4 -1.4 -4.0 1081.05 -2.3 2.1 Glencore PLC 292.95 3.30 Smith (Ds) PLC 307.10 -4.20
FTSE Developed 2185 499.89 -1.6 -3.6 -6.0-8.1 741.20
2.6 General Industrials 58 192.32 -1.4 -1.4 -19.9 309.27 -18.0 2.9 Gvc Holdings PLC 686.00 -35.50 Smiths Group PLC 1384 12.00
Consumer Goods (42) 17673.19 -1.47 15302.29 17936.09 18122.17 22087.39 4.14 4.51 5.35 724.90 13784.28
FTSE Developed All Cap 5744 523.51 -1.6 -3.8 -6.5-8.5 766.16
2.6 Electronic & Electrical Equipment 78 380.86 -1.7 -1.7 -17.4 514.15 -16.2 1.8 Halma PLC 1297 -4.00 Smurfit Kappa Group PLC 2002 -6.00
Automobiles & Parts (1) 6706.80 -0.48 5807.06 6739.31 6775.90 7000.83 2.33 0.00 0.00 291.29 6715.78
FTSE Developed Large Cap 926 464.19 -1.7 -3.4 -5.2-7.4 699.57
2.7 Industrial Engineering 108 670.15 -1.4 -1.4 -22.4 980.22 -20.7 2.7 Hargreaves Lansdown PLC 1814 -17.50 Sse PLC 1055 -34.50
Beverages (5) 22391.43 -0.68 19387.56 22543.76 22695.31 21391.75 2.34 1.84 23.29 524.20 16419.85
FTSE Developed Europe Large Cap 245 326.14 -1.1 -3.7 -12.5-15.5 571.33
3.8 Industrial Transportation 103 635.02 -1.9 -1.9 -11.5 943.44 -9.6 2.4 HSBC Holdings PLC 648.80 -4.70 St. James's Place PLC 926.20 -10.00
Food Producers (12) 6593.63 -2.89 5709.08 6789.78 6772.63 8385.63 2.76 2.08 17.40 171.18 5888.54
FTSE Developed Europe Mid Cap 345 523.56 -1.1 -6.6 -15.6-17.9 813.89
3.3 Support Services 85 381.70 -1.8 -1.8 -0.4 539.03 1.3 1.7 Imperial Brands PLC 2335 -36.50 Standard Chartered PLC 590.00 -14.70
Household Goods & Home Construction (15)12403.01 -1.70 10739.11 12617.55 12791.03 15289.65 4.85 2.23 9.24 596.74 9322.00
FTSE Dev Europe Small Cap 738 722.29 -1.3 -6.9 -18.4-20.5 1084.53
3.2 Consumer Goods 432 438.01 -1.3 -1.3 -14.0 671.10 -12.0 2.8 Informa PLC 637.40 -12.40 Standard Life Aberdeen PLC 240.90 -5.25
Leisure Goods (2) 8609.04 -5.84 7454.11 9143.46 9082.15 9629.38 5.57 1.29 13.86 407.87 8401.64
FTSE North America Large Cap 288 558.78 -1.9 -3.6 -0.7-2.6 783.55
2.2 Automobiles & Parts 109 348.31 -1.2 -1.2 -22.6 517.66 -20.5 3.3 Intercontinental Hotels Group PLC 4178 -23.00 Taylor Wimpey PLC 131.00 -1.30
Personal Goods (5) 31305.58 -2.02 27105.85 31951.64 32120.41 32053.59 3.09 2.82 11.48 941.32 22107.21
FTSE North America Mid Cap 399 775.61 -1.4 -4.5 -6.1-7.6 1007.41
1.9 Beverages 45 616.38 -1.5 -1.5 -8.5 956.88 -6.4 2.6 International Consolidated Airlines Group S.A. 597.40 -21.20 Tesco PLC 190.25 -2.65
Tobacco (2) 30964.15 -1.29 26810.23 31370.06 31907.80 53758.94 6.17 7.72 2.10 1910.70 21457.69
FTSE North America Small Cap 1379 786.15 -1.5 -5.2 -7.3-8.6 989.52
1.7 Food Producers 106 582.09 -1.3 -1.3 -8.1 913.68 -5.7 2.6 Intertek Group PLC 4602 -33.00 Tui AG 1138 -31.50
Health Care (21) 10504.00 -1.50 9094.86 10663.44 10650.26 9269.33 3.27 1.08 28.32 340.44 8522.19
FTSE North America 687 369.43 -1.8 -3.8 -1.6-3.5 529.75
2.2 Household Goods & Home Construction 44 414.45 -0.8 -0.8 -12.0 632.36 -9.5 2.9 Itv PLC 130.00 0.15 Unilever PLC 4230 -90.00
Health Care Equipment & Services (9) 7043.51 -1.80 6098.60 7172.73 7244.60 7706.08 1.86 2.84 18.98 129.56 6250.84
FTSE Developed ex North America 1498 234.50 -1.2 -3.3 -12.5-15.1 399.99
3.4 Leisure Goods 31 191.30 -1.6 -1.6 -20.1 256.85 -19.1 1.2 Johnson Matthey PLC 2688 -30.00 United Utilities Group PLC 756.00 -0.20
Pharmaceuticals & Biotechnology (12)14406.62 -1.46 12473.94 14620.52 14585.11 12390.44 3.42 0.98 29.87 488.07 10458.86
FTSE Japan Large Cap 197 348.31 -1.3 -2.6 -10.1 2.4 Personal Goods
-11.9 464.88 84 724.84 -1.3 -1.3 -4.0 1043.73 -2.1 2.1 Just Eat PLC 579.00 2.00 Vodafone Group PLC 160.70 0.02
Consumer Services (91) 4709.56 -1.62 4077.76 4787.00 4797.26 5082.12 3.17 1.90 16.64 140.92 4603.54 FTSE Japan Mid Cap 322 570.96 -1.3 -2.5 -12.3-13.7 726.88
2.0 Tobacco 13 979.55 -1.9 -1.9 -30.4 2144.27 -27.7 5.6
Food & Drug Retailers (6) 3434.61 -2.29 2973.85 3515.25 3581.76 3327.77 2.17 2.07 22.33 73.06 4126.48 Kingfisher PLC 216.00 -9.40 Whitbread PLC 4451 -47.00
FTSE Global wi JAPAN Small Cap 818 613.29 -1.5 -3.7 -16.2-17.6 808.06
2.0 Health Care 202 520.78 -2.7 -2.7 3.5 771.01 5.6 2.0 Land Securities Group PLC 827.60 -13.00 Wood Group (John) PLC 534.00 -33.80
General Retailers (27) 1823.04 -3.57 1578.48 1890.53 1917.83 2405.90 4.41 1.27 17.78 77.62 2196.64
FTSE Japan 519 147.74 -1.3 -2.6 -10.5 2.3 Health Care Equipment & Services
-12.3 220.98 78 961.97 -2.5 -2.5 9.4 1137.25 10.4 1.0 Legal & General Group PLC 224.10 -5.10 Wpp PLC 870.80 1.40
Media (19) 7795.81 -0.38 6749.98 7825.78 7813.65 7679.61 3.23 2.12 14.64 212.53 5005.05
FTSE Asia Pacific Large Cap ex Japan 530 629.26 -1.4 0.2 -13.2-15.5 1029.61
3.2 Pharmaceuticals & Biotechnology 124 356.60 -2.7 -2.7 1.0 555.37 3.5 2.4 Lloyds Banking Group PLC 51.90 -0.80
Travel & Leisure (39) 8720.80 -1.68 7550.88 8869.93 8830.12 9707.71 3.03 1.98 16.68 267.07 8606.36
FTSE Asia Pacific Mid Cap ex Japan 477 807.84 -1.0 0.6 -14.7-17.2 1268.70
3.4 Consumer Services 399 461.76 -1.7 -1.7 -2.5 630.55 -1.0 1.6
Telecommunications (6) 2548.05 -0.13 2206.22 2551.31 2550.03 3349.17 7.36 0.77 17.56 171.77 3160.56 FTSE Asia Pacific Small Cap ex Japan 1465 503.67 -1.2 0.9 -16.3-18.3 774.40
3.1 Food & Drug Retailers 58 276.04 -1.9 -1.9 -5.6 397.58 -3.4 2.4
Fixed Line Telecommunications (4) 2945.05 -0.43 2549.97 2957.74 2956.03 3231.34 5.97 1.44 11.61 122.25 2923.14
Mobile Telecommunications (2) 3561.81 0.03 3083.98 3560.87 3559.22 5075.29 8.07 0.52 23.74 287.32 4009.03
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
1007 495.52
2111 681.28
-1.4
-1.1
0.3
0.7
-13.4
-13.2
-15.7 861.31
3.3 General Retailers
-15.6 1058.84
3.1 Media
131 714.85
78 320.91
-2.4
-0.9
-2.4
-0.9
3.3 945.62
-6.4 440.05
4.4
-4.9
1.2
1.7
UK STOCK MARKET TRADING DATA
Utilities (8) 6731.40 -1.33 5828.37 6821.81 6878.73 7302.63 6.43 1.27 12.26 423.31 8375.33 FTSE Emerging Large Cap 513 652.09 -1.2 0.7 -12.5-14.9 1020.48
3.0 Travel & Leisure 132 447.14 -0.9 -0.9 -6.6 619.73 -4.9 2.0 Dec 17 Dec 14 Dec 13 Dec 12 Dec 11 Yr Ago
Electricity (3) 6436.73 -2.73 5573.22 6617.22 6659.94 7683.49 8.20 0.38 31.87 532.33 10276.34 FTSE Emerging Mid Cap 505 831.04 -1.0 0.4 -13.5-16.2 1286.03
3.7 Telecommunication 89 147.12 -0.4 -0.4 -11.4 293.26 -7.5 4.8 - - - - - -
Gas Water & Multiutilities (5) 6445.17 -0.96 5580.53 6507.53 6565.05 6808.26 5.97 1.58 10.59 373.00 7991.80 FTSE Emerging Small Cap 1093 670.01 -0.9 1.3 -17.9-20.1 998.11
3.3 Fixed Line Telecommuniations 38 122.34 0.1 0.1 -9.4 270.21 -4.8 5.4 Order Book Turnover (m) 66.67 36.80 36.80 58.24 86.42 134.19
Financials (303) 4493.38 -1.22 3890.58 4549.10 4570.45 5326.96 4.38 1.73 13.16 193.41 4400.96 FTSE Emerging Europe 86 338.05 -1.1 -0.1 -13.2 565.69
-9.0 5.7 Mobile Telecommunications 51 156.17 -1.1 -1.1 -14.2 277.11 -11.0 4.0 Order Book Bargains 893934.00 857235.00 857235.00 903016.00 1007253.00 1002681.00
Banks (10) 3654.69 -1.38 3164.40 3706.01 3722.06 4502.50 4.97 1.34 15.00 182.70 2879.48 FTSE Latin America All Cap 239 833.92 -0.8 -1.3 -10.1 1337.88
-7.5 3.2 Utilities 165 279.76 -0.3 -0.3 1.4 572.43 5.1 3.5 Order Book Shares Traded (m) 1246.00 1179.00 1179.00 1233.00 1674.00 1363.00
Nonlife Insurance (10) 3420.20 -1.00 2961.37 3454.81 3460.53 3552.64 3.67 1.46 18.68 124.49 6324.97 FTSE Middle East and Africa All Cap 258 635.51 -1.3 -1.4 -16.7 3.6 Electricity
-19.0 1031.98 110 311.42 -0.2 -0.2 3.0 628.83 6.6 3.4 Total Equity Turnover (£m) 4030.54 3619.49 3619.49 4235.50 4321.16 5557.48
Life Insurance/Assurance (7) 6751.81 -1.80 5846.03 6875.61 6925.47 8933.43 5.21 1.47 13.05 345.84 6995.52 FTSE Global wi UNITED KINGDOM All Cap In 317 302.50 -1.0 -6.7 -14.9 4.4 Gas Water & Multiutilities
-18.2 536.27 55 286.26 -0.4 -0.4 -1.6 603.39 2.3 3.7 Total Mkt Bargains 1024229.00 990174.00 990174.00 1040559.00 1156620.00 1152908.00
Real Estate Investment & Services (18) 2358.88 -1.12 2042.43 2385.66 2389.12 2775.88 2.85 2.86 12.29 67.58 6548.97 FTSE Global wi USA All Cap 1856 636.04 -1.8 -3.9 -1.7 2.0 Financials
-3.4 863.46 728 222.82 -1.0 -1.0 -13.8 379.47 -11.2 3.5 Total Shares Traded (m) 3389.00 3722.00 3722.00 3635.00 3977.00 3455.00
Real Estate Investment Trusts (39) 2445.70 -1.14 2117.60 2473.78 2475.85 2804.15 4.66 1.59 13.49 112.93 3245.62 FTSE Europe All Cap 1483 381.72 -1.1 -4.4 -13.6 3.8 Banks
-16.4 644.33 244 187.58 -1.0 -1.0 -19.1 345.63 -16.2 4.3 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (38) 7784.77 -1.05 6740.42 7867.07 7919.11 9301.72 4.49 2.15 10.37 300.68 9373.59 FTSE Eurozone All Cap 684 369.74 -1.1 -4.4 -15.2 3.5 Nonlife Insurance
-17.6 625.53 72 254.40 -0.9 -0.9 -6.6 380.46 -4.4 2.5 (c) Market closed.
Equity Investment Instruments (181) 9629.60 -0.69 8337.77 9696.09 9746.65 9976.66 2.67 3.33 11.23 252.53 5468.56 FTSE RAFI All World 3000 3158 6259.25 -1.3 -4.0 3.4 Life Insurance
-11.6 8620.17
-9.0 55 200.97 -1.1 -1.1 -20.4 335.45 -17.8 3.7
Non Financials (330) 4396.52 -1.03 3806.71 4442.42 4466.74 4827.58 4.28 2.05 11.40 183.99 6888.12 FTSE RAFI US 1000 1025 10757.67 -1.6 -4.9 -4.6 2.7 Financial Services
-6.8 14602.48 164 283.08 -1.3 -1.3 -7.9 400.38 -6.2 2.1
Technology (15) 1719.24 -2.13 1488.60 1756.57 1773.47 2271.58 3.09 1.64 19.67 49.85 2289.89 FTSE EDHEC-Risk Efficient All-World 3203 369.27 -1.3 -3.3 -6.9 2.6 Technology
-9.0 530.60 206 261.13 -2.2 -2.2 -2.7 326.52 -1.3 1.6 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (13) 1916.93 -2.08 1659.77 1957.74 1978.43 2621.21 3.12 1.67 19.24 57.33 2699.41 FTSE EDHEC-Risk Efficient Developed Europe 590 290.00 -1.0 -5.1 -11.9 3.3 Software & Computer Services
-14.3 458.87 105 466.52 -2.2 -2.2 0.7 551.07 1.6 0.9 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (2) 2395.97 -3.11 2074.54 2472.87 2439.57 1845.24 2.37 0.94 44.87 39.43 2873.49 Oil & Gas 148 349.26 -1.6 -4.4 -10.7 593.01
-7.6 4.0 Technology Hardware & Equipment 101 188.51 -2.2 -2.2 -6.6 247.71 -4.7 2.5 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Alternative Energy 7 100.21 -0.9 -0.9 4.1 138.39 5.9 1.9 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 115 328.44 -0.8 -0.8 -10.8 569.11 -8.2 3.1 For all queries e-mail [email protected]
FTSE 100 6150.49 6157.87 6148.07 6142.52 6152.05 6148.41 6138.03 6117.64 6112.07 6159.75 6100.55 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 17237.54 17267.64 17272.58 17222.39 17201.98 17198.76 17202.15 17200.45 17190.34 17273.30 17174.94 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 4521.55 4532.71 4535.37 4533.99 4533.36 4535.15 4533.92 4535.86 4533.96 4539.04 4521.40
FTSE All-Share 3394.59 3399.14 3395.09 3390.92 3394.38 3392.73 3388.27 3379.37 3376.53 3399.58 3371.58 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:08:46:45 Day's Low15:54:30 FTSE 100 2010/11 High: 7103.98(27/04/2015) Low: 5874.06(14/12/2015) 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:08:59:00 Day's Low16:21:00 FTSE 100 2010/11 High: 3834.45(27/04/2015) Low: 3245.99(24/08/2015) 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 APC Technology Group Pre 17.149 15.564 0.555 0.166 0.500 0.100 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- Finsbury Growth & Income Trust Pre 156.009 135.965 93.600 89.600 8.10000 7.40000 Nov 9 15.300 14.200 12/14 175.00 AIM MANO Manolete Partners PLC 195.50 0.65 215.00 190.00 8518.2
There are currently no rights offers by any companies listed on the LSE. Invesco Asia Trust Int 23.847L 34.471 34.110L 43.820 0.00000 0.00000 - 5.500 4.300 12/11 100.00 SDCL Energy Efficiency Income Trust PLC 100.39 -0.39 103.00 100.00 10039.0
Kazera Global Pre 0.000 0.000 2.538L 1.098L 0.810L 0.510L 0.00000 0.00000 - 0.000 0.000 12/11 100.00 SEIT SDCL Energy Efficiency Income Trust PLC 100.39 -0.39 103.00 100.00 10039.0
Safeland Int 1.964 2.846 0.472L 0.224L 3.170L 1.490L 0.00000 0.00000 - 1.000 1.000 12/07 160.00 AJB AJ Bell PLC 231.90 -6.96 248.00 162.00 94396.3
Vordere Int 0.081 0.000 1.291L 0.504L 0.600L 0.500L 0.00000 0.00000 - 0.000 0.000 12/07 1.00 HOYE Honye Financial Services Ltd 14.50 - 0.00 0.00 357.3
12/05 28.00 AIM FCAP FinnCap Group PLC 28.25 -0.25 28.20 27.66 4752.5
11/30 40.00 AIM KRPZ Kropz PLC 42.00 0.00 45.00 42.00 10999.0
11/26 10.00 HERT Hertsford Capital PLC 11.75 0.00 12.50 10.75 376.0
11/22 0.75 GST Golden Saint Technologies Ltd 0.68 -0.05 0.90 0.60 672.0
11/14 100.00 MGCI M&G Credit Income Investment Trust PLC 103.00 -0.28 103.75 101.03 10300.0
11/06 121.00 AIM RENX Renalytix AI PLC 107.50 0.00 122.40 85.00 5785.2

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
16 ★ FINANCIAL TIMES Tuesday 18 December 2018

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland (€) Japan (¥) Sweden (SKr) AT&T 30.05 -0.17 39.33 28.85 6.44 5.91 218703.9 Lockheed♦ 285.93 -1.77 363.00 277.20 2.71 28.00 81327.09
ANZ♦ 24.41 -0.39 30.39 24.13 6.39 10.65 50266.09 Nokia 5.22 -0.06 5.39 3.85 3.61 -26.32 33323.76 AstellasPh 1660.5 4.50 2056 1379.5 2.14 18.31 29092.89 AtlasCpcoB 195.48 -1.06 339.70 187.74 5.23 13.18 8436.42 AutomData♦ 135.69 0.87 153.51 107.61 1.88 36.16 59395.92 Lowes 92.79 -0.57 117.70 81.16 1.89 20.89 74506.38
BHPBilltn 33.53 1.13 35.68 28.03 3.81 20.23 77325.41 SampoA 38.87 -0.19 48.92 37.61 6.58 9.19 24418.59 Bridgestne 4539 33.00 5515 3906 3.39 11.49 30589.5 Ericsson 81.26 -0.94 85.66 49.04 1.21 -12.87 27612.24 Avago Tech 259.52 4.69 274.26 197.46 2.32 9.99 107297.7 Lyondell 83.74 1.40 121.95 81.05 4.50 5.78 32127.49
CmwBkAu 69.26 0.45 82.66 65.23 6.10 13.54 88037.85 France (€) Canon 3171 21.00 4422 3102 4.70 15.10 37428 H&M 142.80 -13.32 173.40 117.10 6.56 18.80 23068.98 BakerHu 57.68 3.17 68.59 43.09 - -346.53 24541.87 Marathon Ptl 60.16 0.29 88.45 58.13 2.86 7.88 41561.75
CSL 183.74 3.59 232.69 138.92 1.03 36.27 59760.83 Airbus Grpe 87.65 -1.02 111.16 81.33 1.68 30.30 77143.03 CntJpRwy 23485 590.00 24390 19105 0.57 11.40 42813.36 Investor 383.20 -4.90 419.90 348.00 2.05 7.13 19303.96 BankAm♦ 24.86 0.38 33.05 24.12 1.98 12.18 243980.93 Marsh&M 82.90 -0.10 89.59 77.11 1.36 28.67 41757.4
NatAusBk 23.55 -0.14 30.64 23.28 8.19 11.63 46236.11 AirLiquide 106.35 -0.85 115.25 97.12 2.45 19.98 51642.22 Denso 5091 -41.00 7218 4860 2.55 14.72 35499.36 Nordea Bk 96.86 -0.80 111.30 82.92 7.25 11.87 44109.93 Baxter♦ 65.78 0.08 78.38 61.05 1.03 30.78 35006.52 MasterCard 192.40 -2.93 225.35 149.89 0.50 40.19 196427.22
Telstra 2.90 0.03 3.79 2.60 7.79 9.84 24766.01 AXA 19.02 -0.18 27.69 18.86 6.52 7.89 52608.76 EastJpRwy 10220 150.00 11615 9351 1.36 14.07 34532.95 SEB 88.02 -0.18 102.70 79.16 6.42 8.95 21124.79 BB & T 45.83 0.17 56.31 45.10 3.13 12.77 35317.5 McDonald's 183.36 0.07 190.88 146.84 2.13 28.68 141354.1
Wesfarmers 31.94 0.66 37.87 28.91 6.86 14.14 26004.09 BNP Parib 40.58 -1.02 68.66 40.30 7.32 7.15 57494.9 Fanuc 16910 5.00 33450 16845 3.13 19.15 30533.89 SvnskaHn 102.55 -0.35 118.65 92.84 5.27 11.97 21650.67 BectonDick♦ 229.86 -1.60 264.68 209.91 1.26 396.14 61660.43 McKesson♦ 114.63 -2.03 178.86 114.08 1.19 188.15 22395.98
Westpc♦ 24.65 -0.23 31.74 24.52 7.43 10.99 60795.7 ChristianDior 333.50 -1.10 382.70 291.60 1.47 24.03 68244.61 FastRetail 60990 220.00 61930 38900 0.71 40.71 57251.61 Swedbank 203.00 -2.00 221.70 177.15 6.30 10.85 25415.12 BerkshHat 301000 680.00 335900280427.97 - 8.26 220678.75 Medtronic 92.93 -0.79 100.15 76.41 2.04 56.38 124809.21
Woolworths 28.64 0.33 31.48 26.16 3.19 23.66 27092.55 Cred Agr 9.91 -0.23 14.96 9.85 6.25 8.73 32206.03 Fuji Hvy Ind 2465.5 -15.00 3857 2401 5.62 10.94 16782.33 Telia Co 43.47 -0.01 44.02 35.42 4.86 16.87 20817.75 Biogen 321.91 7.36 388.67 249.17 - 21.54 64858.25 Merck♦ 76.54 0.06 80.19 52.83 2.43 63.32 199032.82
Belgium (€) Danone 63.23 -0.85 72.13 61.81 2.96 15.27 49105.03 Hitachi 3221 -31.00 4721 762.20 1.43 5.83 27555.01 Volvo 116.60 -1.00 167.65 114.55 3.58 8.77 21275.69 BkNYMeln 49.64 0.97 58.99 45.16 1.85 12.49 49082.91 Metlife 39.63 0.74 55.21 38.69 4.00 8.16 39108.4
AnBshInBv 61.07 -1.20 96.70 60.89 6.04 - 117226.08 EDF 14.20 -0.04 15.73 9.83 3.19 18.51 48458.6 HondaMtr 3050 -4.00 4151 2916 3.38 4.98 48892.54 BlackRock♦ 386.15 3.85 594.52 376.31 2.85 11.44 60900.6 Microsoft 105.33 -0.70 116.18 83.83 1.54 44.82 808536.12
Switzerland (SFr)
KBC Grp 58.94 -1.52 78.80 58.62 5.01 10.98 27789.05 Engie SA 12.87 -0.04 14.82 11.31 5.35 27.82 35517.05 JapanTob 2871 12.50 3736 2784.5 4.92 13.79 50814.16 Boeing 326.30 7.55 394.28 293.01 1.94 19.86 185301 Mnstr Bvrg 52.54 -0.15 70.22 47.61 - 32.34 29052.7
ABB 19.25 -0.35 27.24 18.61 4.09 19.06 41967.33
Esslr Intl 128.75 1.30 129.55 100.60 1.18 38.25 32686.21 KDDI 2665.5 26.50 3187 2331.5 3.43 11.33 59726.19 BrisMySq 52.22 0.10 70.05 46.94 2.96 60.67 85225.26 MondelezInt 43.61 0.06 46.54 37.42 2.04 20.13 63394.49
Brazil (R$) CredSuisse 11.08 -0.12 18.81 10.80 2.22 -53.60 28484.4
Hermes Intl 476.80 -9.00 614.60 417.90 0.85 38.40 57062.61 Keyence 57180 -260.00 72400 50780 0.25 32.21 61533.7 CapOne 78.45 -0.28 106.50 77.23 1.97 10.95 37158.35 Monsanto 127.95 0.02 127.97 114.19 1.64 23.62 56462.29
Ambev 16.12 0.06 24.56 14.54 3.17 25.41 64826.97 Nestle 82.88 -0.96 86.50 72.92 2.71 32.58 255329.6
LOreal 203.30 -1.00 214.40 170.30 1.72 28.77 129145.17 MitsbCp 3145 -1.00 3638 2776 3.82 8.44 44254.8 CardinalHlth 48.99 -1.07 75.75 48.14 3.71 21.20 14596.15 MorganStly 40.48 0.84 59.38 39.06 2.51 9.99 69631.87
Bradesco 33.50 -0.34 36.80 22.33 1.12 12.56 28790.8 Novartis 85.78 -1.24 92.80 71.84 3.34 15.62 220057.94
LVMH 250.10 -1.85 313.70 232.50 1.97 21.33 143188.15 MitsubEst 1870 23.50 2218 1682 1.39 19.20 23019.83 Carnival 56.88 0.55 72.70 53.47 3.24 13.11 29967.48 MylanNV 29.38 0.33 47.82 28.77 - 29.21 15149.25
Cielo 9.37 -0.07 28.25 8.47 10.27 6.75 6511.47 Richemont 62.58 -0.98 99.02 62.10 2.76 26.38 32855.68
Orange 14.44 -0.11 15.25 13.32 4.43 21.58 43529.62 MitsubishiEle 1306 13.50 2179 1260 2.95 11.50 24816.32 Caterpillar 127.14 0.37 173.24 112.06 2.43 20.97 75026.17 Netflix 271.09 4.25 423.21 185.22 - 100.12 118220.42
ItauHldFin 30.25 -0.19 91.62 29.25 1.24 13.17 38365.07 Roche 248.20 -1.70 260.35 206.35 3.20 21.31 175384.52
PernodRic 146.65 -1.75 150.40 120.05 1.40 25.10 44126.1 MitsuiFud 2753.5 17.50 3082 2395.5 1.47 16.09 24158.3 CBS 47.68 -0.37 61.59 47.34 1.46 13.04 16053.93 NextEraE 178.96 -2.28 184.20 145.10 2.33 10.53 85533.08
Petrobras 26.49 0.16 31.80 15.56 0.19 28.37 50428.58 Swiss Re 88.66 -0.90 98.80 84.20 5.42 183.05 30195.63
Renault 54.66 -0.99 100.80 54.44 6.39 3.25 18324.45 MitUFJFin 583.90 0.80 894.40 579.40 3.46 6.41 71450.84 Celgene 69.46 1.26 110.20 66.62 - 18.23 48570.03 Nike♦ 71.64 -0.89 86.04 60.13 1.08 58.14 91202.49
Vale 51.98 1.10 62.42 36.36 4.90 18.09 37627.41 Swisscom 477.70 -0.10 530.60 427.00 4.40 17.02 24888.9
Safran 107.60 -0.60 122.25 81.04 1.46 22.51 54120.28 Mizuho Fin 179.70 0.40 220.70 177.70 4.02 7.64 40380.93 CharlesSch 41.41 0.22 60.22 40.08 0.96 19.55 55922.25 NorfolkS 148.54 -2.34 186.91 127.79 1.86 7.45 40454.41
Canada (C$) Syngent 453.40 0.90 471.20 402.50 - -437.40 43035.76
Sanofi 77.42 -0.82 80.17 62.88 3.85 30.39 109903.3 Murata Mfg 16340 290.00 20255 13680 1.59 22.18 32574.65 Charter Comms 310.13 0.71 396.64 250.10 - 8.73 70994.24 Northrop♦ 262.04 -0.67 360.88 245.57 1.66 17.34 45495.31
BCE♦ 55.90 -0.32 61.89 50.72 5.34 18.31 37526.65 UBS 12.33 -0.18 19.77 12.15 5.19 28.46 47792
Sant Gbn 29.00 -0.60 48.60 28.82 4.41 8.03 17969.38 NipponTT 4727 31.00 5451 4050 3.26 10.65 81588.63 Chevron Corp 114.70 0.87 133.88 107.54 3.74 15.96 219165.82 NXP♦ 77.80 0.23 125.93 69.72 0.31 10.23 26917.29
BkMontrl 89.94 0.04 109.00 89.33 4.23 10.95 42983.59 Zurich Fin 291.40 -6.20 321.80 288.70 5.67 14.01 44357.87
Schneider 60.36 -0.64 78.56 57.66 0.31 15.29 39628.6 Nissan Mt 929.90 -2.60 1197 912.10 5.69 5.27 34733.11 Chubb 129.33 1.21 157.50 120.50 2.15 12.20 59595.96 Occid Pet♦ 65.50 0.40 87.67 62.47 4.56 13.31 49457.07
BkNvaS 71.91 -0.09 83.22 69.02 4.59 10.49 65958.18 Nomura 461.80 0.60 756.50 447.10 2.92 16.05 14890.26 Taiwan (NT$) Cigna 202.53 -2.84 227.13 163.02 0.02 18.63 49322.99 Oracle 46.67 0.07 53.48 42.57 1.58 49.59 176815.74
SFR Group 34.50 - 34.56 21.87 - -23.02 17905.81
Brookfield♦ 54.68 -0.74 59.15 46.71 1.40 16.58 40615.22 Nppn Stl 1991 -5.50 3132 1923 3.87 7.70 16744.16 Chunghwa Telecom 107.50 - 115.00 104.50 4.36 23.80 27017.17 Cisco 45.33 -0.50 49.47 37.35 2.79 148.14 203779.47 Pepsico♦ 114.52 0.57 122.51 95.94 2.93 34.03 161652.77
SocGen 29.03 -0.83 47.51 28.93 7.46 9.22 26583.77
CanadPcR 242.75 -2.46 289.90 212.50 1.00 14.68 25825.93 NTTDCMo 2572 13.00 3095 2406 3.93 12.78 86089.13 Formosa PetChem 112.50 1.50 151.00 106.00 5.47 12.54 34719.55 Citigroup 55.79 0.77 80.70 54.45 2.44 -29.58 140401.42 Perrigo♦ 57.87 0.88 95.93 55.51 1.22 68.78 7862.02
Total 48.62 -0.49 56.82 43.09 5.21 13.54 145413.76
CanImp 106.57 -0.63 125.21 105.55 5.02 9.10 35282.68 Panasonic 1087 -4.50 1740.5 1048.5 3.10 11.43 23597.07 HonHaiPrc 71.10 -0.40 97.40 68.10 3.44 7.29 31932.98 CME Grp♦ 188.52 0.88 197.08 143.68 1.42 14.71 64252.88 Pfizer 43.71 -0.09 46.47 33.20 2.96 11.44 252664.54
UnibailR 190.00 0.35 236.45 177.35 5.43 8.02 22215.04
CanNatRs♦ 33.47 -0.81 49.08 32.08 3.83 10.93 30175.59 Seven & I 4923 50.00 5203 4275 1.86 22.83 38619.06 MediaTek 235.00 -1.00 374.50 199.50 3.12 13.94 12116.83 Coca-Cola 49.21 -0.13 50.84 41.45 3.03 69.71 209463.05 Phillips66 86.76 -0.07 123.97 85.76 3.34 6.79 40007.23
Vinci 72.36 -1.16 88.80 70.98 3.33 13.65 49012.41
CanNatRy♦ 101.87 -1.69 118.62 90.84 1.75 13.10 55453.21 ShnEtsuCh 9149 102.00 13175 8100 1.84 12.91 34621 TaiwanSem 223.50 1.00 268.00 210.00 3.50 16.82 187758.26 Cognizant 66.08 -1.69 85.10 65.14 1.10 27.78 38262.17 PhilMorris 82.47 -0.04 111.25 76.21 5.18 19.83 128193.81
Vivendi 21.03 -0.26 24.87 20.26 2.11 22.73 31137.62
Enbridge 42.75 -0.02 51.04 37.36 6.14 45.93 58429.09 Softbank 8540 44.00 11500 7540 0.50 5.63 83182.65 Thailand (THB) ColgtPlm 63.92 -1.25 77.91 57.41 2.48 27.31 55439.09 PNCFin 120.02 1.52 163.59 116.55 2.58 10.25 55380.17
GtWesLif♦ 27.62 -0.12 35.59 27.61 5.56 10.33 20406.77 Germany (€)
Sony 5839 -16.00 6973 4959 0.49 11.59 65628.61 PTT Explor 48.00 0.25 59.50 43.00 3.94 11.48 41818.51 Comcast 36.73 0.39 44.00 30.43 1.92 7.42 166756.42 PPG Inds 99.94 -0.20 122.07 94.37 1.77 21.00 23974.09
ImpOil♦ 35.57 0.79 44.91 33.43 1.97 21.80 20983.38 Allianz 175.28 -1.56 206.85 170.12 4.49 11.44 84342.42
SumitomoF 3939 22.00 5333 3857 4.27 7.00 48780.91 United Arab Emirates (Dhs) ConocPhil 64.49 -0.06 79.96 50.18 1.68 13.34 74243.59 Praxair♦ 164.50 -0.99 169.75 140.00 1.97 33.57 47306.22
Manulife♦ 19.71 0.02 27.77 19.51 4.39 16.14 29242.21 BASF 59.24 -0.86 98.80 57.35 5.00 9.08 61682.42
Takeda Ph 3943 -38.00 6693 3662 4.39 22.96 27730.18 Emirtestele 16.90 -0.08 18.00 15.80 4.56 17.55 40013.42 Corning 31.74 0.31 36.56 26.11 2.12 -44.35 25404.67 Priceline 1905.64 -1.38 2067.99 1612.41 - 30.70 92937.2
Potash 25.78 -0.05 26.41 20.68 7.65 -47.36 16841.05 Bayer 64.00 0.64 108.47 60.27 4.27 10.66 67659.73
TokioMarine 5383 40.00 5737 4689 3.04 15.78 34284.47 United Kingdom (p) Costco 207.25 0.19 245.16 175.79 1.00 30.13 90818.69 ProctGmbl 94.64 -2.00 96.90 70.73 2.88 25.55 235786.88
RylBkC 94.27 -0.05 108.52 93.13 4.02 11.22 101544.41 BMW 74.00 -0.27 97.50 69.64 5.32 5.81 50501.23
Toyota 6840 11.00 7806 6396 3.09 7.90 197512.4 CrownCstl♦ 113.32 -1.23 117.60 98.85 3.58 110.55 47010.85 Prudntl 82.65 0.28 127.14 81.24 4.04 5.31 34134.45
Suncor En♦ 39.53 -0.09 55.47 39.24 3.54 13.08 47797.93 Continental 122.80 0.15 257.40 120.70 3.61 8.19 27843.16 AscBrFd♦ 2110 -70.00 2905 2092 1.96 16.55 21065.79
Mexico (Mex$) CSX 65.08 -0.75 76.24 48.43 1.28 9.13 54954.88 PublStor♦ 203.18 -0.29 234.90 180.48 3.81 28.32 35427.38
ThmReut 67.74 -0.81 71.54 51.43 2.90 25.84 25569.62 Daimler 47.42 0.05 76.48 45.07 7.63 5.64 57511.75 AstraZen 6043 -87.00 6432 4544.5 3.49 41.15 96513.7
AmerMvl 14.38 0.01 18.20 12.32 3.40 16.09 32117.6 CVS 71.89 0.01 83.88 60.14 2.69 24.53 73241.36 Qualcomm♦ 58.19 0.57 76.50 48.56 3.96 -18.12 70535.74
TntoDom 69.35 -0.23 80.05 69.09 3.78 11.48 95076.06 Deut Bank 7.66 -0.19 17.13 7.24 1.42 -7.29 17947.28 Aviva 368.50 -8.50 554.60 364.00 7.44 13.30 18650.09
FEMSA UBD 166.07 -3.50 189.49 158.17 1.57 15.89 17858.5 Danaher 101.39 0.99 110.86 91.84 0.59 26.95 71064.53 Raytheon 169.88 0.03 229.75 162.31 1.90 20.47 48343.94
TrnCan 53.13 -0.42 62.31 48.92 5.08 14.35 36281.68 Deut Tlkm 15.22 0.11 15.60 12.72 4.20 22.09 82127.64 Barclays 152.84 -5.60 220.10 151.16 2.94 72.78 32889.72
WalMrtMex 48.41 -0.02 57.60 43.58 1.50 22.86 42060.85 Deere 149.58 0.57 175.26 128.32 1.60 24.35 48115.93 Regen Pharm 384.04 2.87 416.49 281.89 - 29.13 40832.37
ValeantPh 30.80 -1.06 36.02 14.01 - -4.99 8158.48 DeutsPost 24.84 -0.25 41.36 24.55 4.55 12.38 34600.1 BP♦ 508.60 -4.10 603.20 452.50 6.05 15.40 127834.03
Delphi 14.89 0.33 60.39 14.23 3.31 4.88 1317.65 S&P Global 166.40 -0.22 217.31 164.99 1.11 25.57 41749.76
E.ON 8.97 -0.26 9.95 7.88 3.29 7.27 22382.54 Netherlands (€) BrAmTob 2628 -32.00 5108 2619 7.52 1.44 76014.99
China (HK$) Delta 53.16 -0.35 61.32 48.52 2.30 10.80 36447.49 Salesforce 135.08 -1.96 161.08 101.32 - 147.16 103333.6
Fresenius Med 59.50 -0.66 93.82 58.94 1.77 9.47 20782.68 Altice 1.99 -0.04 3.63 1.22 - 28.92 3513.03 BSkyB 1727.5 1.50 1740 893.50 0.76 36.60 38843.72
AgricBkCh 3.44 0.01 5.02 3.35 5.75 5.22 13535.84 Devon Energy 26.44 0.60 46.54 25.36 1.02 -66.67 12376.87 Schlmbrg♦ 39.71 0.61 80.35 38.81 4.87 -87.37 54990.48
Fresenius SE 42.00 -0.01 71.36 38.28 1.76 11.93 26414.51 ASML Hld 144.48 0.40 189.50 138.70 0.96 25.49 70002.41 BT 250.05 -1.50 278.50 201.25 6.16 11.02 31287.43
Bk China 3.32 0.01 4.96 3.20 5.91 5.12 35537.79 DiscFinServ 60.86 -0.96 81.93 60.54 2.30 9.30 20446.81 Sempra Energy 117.83 -0.66 127.22 100.49 2.88 -69.23 32245.38
HenkelKgaA 86.05 -2.70 105.10 82.45 2.02 15.62 25343.14 Heineken 79.00 -1.32 93.54 75.44 1.83 22.75 51585.64 Compass 1663.5 -19.50 1722 1396.5 2.04 23.27 34500.8
BkofComm 5.82 0.01 7.13 5.33 5.47 3.35 26083.84 Disney♦ 112.42 0.22 120.20 97.68 1.45 13.91 167356.39 Shrwin-Will 385.69 -0.31 479.64 355.28 0.86 19.91 36110.73
Linde 139.95 0.65 146.50 132.45 - 33.28 88552.14 ING 9.91 -0.31 16.69 9.74 6.65 7.69 43729.6 Diageo 2809 -16.00 2885 2345.5 2.26 23.54 88030.85
BOE Tech 0.87 -0.03 1.78 0.83 - 20.78 22.16 DominRes♦ 75.36 -1.57 85.30 61.53 4.20 16.13 49468.55 SimonProp 180.20 -2.46 191.49 145.78 4.16 25.18 55735.21
MuenchRkv 187.20 -1.00 200.30 174.85 4.52 42.10 31734.82 Unilever 48.50 -0.97 50.16 42.13 2.97 22.72 94269.11 GlaxoSmh♦ 1467.6 -12.40 1648.8 1236.4 5.45 38.77 91019.03
Ch Coms Cons 7.69 0.11 9.78 6.96 3.63 5.47 4358.34 DowDupont 53.24 0.46 77.08 51.32 2.76 148.79 122145.54 SouthCpr 32.17 0.47 58.09 31.11 3.76 26.61 24868.84
SAP 88.66 -1.28 108.52 82.05 1.56 25.21 123475.74 Norway (Kr) Glencore 292.95 3.30 416.90 268.35 3.52 9.21 53290.62
Ch Evrbrght 3.48 0.07 4.76 3.14 5.86 5.66 5648 DukeEner 89.44 -1.31 91.35 71.96 3.89 22.50 63759.77 Starbucks 65.46 0.12 68.98 47.37 1.86 20.89 81209.68
Siemens 99.58 -0.62 125.70 96.51 3.66 13.04 95955.16 DNB 143.55 -1.95 174.20 138.90 5.07 9.83 26700.08 HSBC 648.80 -4.70 798.60 596.40 5.98 15.80 164106.45
Ch Rail Cons 11.06 0.16 11.12 7.53 1.90 8.26 2939.54 Eaton 70.64 0.06 89.85 69.45 3.53 14.94 30615.38 StateSt 64.92 1.39 114.27 62.16 2.58 10.71 24639.46
Volkswgn 146.00 -0.50 191.80 129.60 2.63 6.50 48840.98 Equinor 190.35 -4.00 234.60 169.20 3.94 11.24 73676.81 Imperial Brands 2335 -36.50 3193.5 2298 7.53 16.31 28084.34
Ch Rail Gp 7.39 - 8.01 5.25 1.77 8.64 3980.06 eBay 28.94 0.03 46.99 26.36 - -46.04 27864.22 Stryker 164.29 -2.27 179.84 146.80 1.11 52.43 61475.23
Hong Kong (HK$) Telenor 170.40 0.30 191.70 148.10 4.63 17.26 29068.54 LlydsBkg 51.90 -0.80 72.68 51.54 6.01 9.27 47170.67
ChConstBk 6.45 0.01 9.39 6.02 5.10 5.76 198500.56 Ecolab♦ 152.29 -1.72 162.91 125.74 1.04 28.84 43992.48 Sychrony Fin 23.99 -0.11 40.59 23.71 2.66 7.88 17242.37
AIA 63.75 -0.30 75.00 58.20 1.31 17.18 98554.52 Natl Grid♦ 835.30 -8.20 895.10 733.00 5.50 8.50 35415.29
China Vanke 27.85 -0.35 42.85 21.50 3.64 9.05 4687.83 Qatar (QR) Emerson 59.97 -0.48 79.70 59.35 3.13 17.92 37547.6 Target 66.15 -1.02 90.39 62.35 3.73 11.17 34519.29
BOC Hold 29.85 -0.05 42.15 28.90 4.15 10.67 40398.8 Prudential 1394 -21.50 1992.5 1384 3.37 15.95 45483.67
ChinaCitic 4.82 0.03 6.82 4.61 5.98 4.99 9182.29 QatarNtBk 198.00 2.00 200.50 116.66 2.72 15.74 50228.31 EOG Res 99.47 -0.62 133.53 96.54 0.69 12.03 57680.06 TE Connect 73.52 0.52 108.23 72.07 2.21 10.39 25220.96
Ch OSLnd&Inv 27.25 0.05 32.20 22.35 2.79 7.42 38217.42 RBS 208.20 -3.40 304.20 200.10 0.96 33.56 31418.02
ChinaLife 16.50 -0.06 27.20 15.44 2.82 11.54 15716.65 Russia (RUB) EquityResTP 69.31 -0.63 72.75 54.97 2.96 39.82 25536.62 Tesla Mtrs 361.82 -3.89 387.46 244.59 - -35.33 62136.75
ChngKng 57.50 0.05 75.30 50.30 2.81 5.60 27184.98 ReckittB 6176 -88.00 7174 5255 2.66 12.66 54847.27
ChinaMBank 31.70 -0.25 39.50 26.40 2.96 9.28 18629.1 Gzprm neft 153.53 -1.87 176.95 128.19 5.16 3.00 54491.22 Exelon 46.34 -0.72 47.40 35.57 2.84 12.38 44811.23 TexasInstr 94.48 0.22 120.75 87.90 2.54 20.92 90752.13
Citic Ltd 13.02 0.08 13.28 10.22 2.63 9.44 48483.58 RELX 1639 10.00 1750.5 1399 2.40 19.96 40695.17
ChinaMob 75.25 0.30 84.05 67.85 3.98 11.66 197231.11 Lukoil 5100 - 5342 3262.5 4.15 6.36 57345.77 ExpScripts 97.61 -0.61 101.73 66.93 - 11.79 55038.37 TheTrvelers♦ 121.41 0.86 150.55 119.67 2.37 14.01 32159.42
Citic Secs 14.50 -0.08 22.95 11.62 3.10 14.84 4228.83 RioTinto 3762.5 87.00 4541 3460.5 5.79 7.80 63639.15
ChinaPcIns 26.40 - 42.40 26.15 3.44 13.28 9378.82 MmcNrlskNckl 13349 189.00 13490 8824 1.85 11.45 31670.14 ExxonMb 75.43 -0.15 89.30 72.16 4.08 14.34 319356.07 ThrmoFshr♦ 234.49 0.30 253.91 189.09 0.27 38.25 94400.14
CK Hutchison 79.65 0.45 107.00 75.05 3.40 8.69 39317.42 RollsRoyce♦ 807.80 -0.80 1104.5 750.00 1.45 7.16 18946.48
ChMinsheng 5.58 0.02 7.79 5.29 1.51 4.33 5943.02 Novatek 1117.1 -6.70 1215 656.30 1.32 20.66 50851.93 Facebook 144.44 0.38 218.62 126.85 - 22.49 347022.79 TimeWrnr 98.77 0.82 103.89 85.88 1.54 15.09 77269.69
CNOOC 12.68 -0.12 15.78 10.68 3.68 14.81 72468.63 RylDShlA♦ 2322 -20.50 2755 2168.5 6.22 11.90 134616.51
ChMrchSecs RMB 13.86 -0.03 20.69 11.13 2.42 24.22 9848.89 Rosneft 416.00 -2.00 522.80 281.65 2.56 9.51 66098.93 Fedex♦ 185.56 1.45 274.66 181.60 1.46 10.80 48898 TJX Cos 44.88 -0.35 56.37 36.41 1.55 18.63 55337.39
HangSeng 177.80 -0.40 216.80 174.60 3.64 15.88 43512.99 Shire 4532.5 -140.50 4780 2940.5 0.60 11.24 52216.53
Chna Utd Coms RMB 5.26 0.02 7.42 4.63 0.37 76.12 16156.68 Sberbank 182.30 -2.63 285.00 166.00 6.48 4.76 58999.5 FordMtr 8.67 0.15 13.48 8.17 6.69 5.78 33941.96 T-MobileUS 65.69 0.04 70.94 55.09 - 11.88 55730.94
HK Exc&Clr 231.20 -1.00 18396.39 195.60 2.22 33.62 37012.83 StandCh 590.00 -14.70 864.20 514.20 1.42 22.71 24529.64
ChShenEgy 18.16 -0.02 25.75 16.04 5.76 7.36 7900.38 Surgutneftegas 28.10 0.10 30.92 26.04 2.17 2.52 15051 Franklin 31.58 0.21 45.96 28.12 2.82 23.49 16174.45 UnionPac♦ 140.29 -2.28 165.63 121.22 2.02 9.74 103362.3
MTR 41.20 0.15 7466.04 37.50 2.59 15.81 32375.22 Tesco 190.25 -2.65 266.80 190.05 1.58 16.81 23431.71
ChShpbldng RMB 4.23 0.02 6.45 3.81 0.25 79.29 11255.15 GenDyn 166.61 -2.36 230.00 164.76 2.11 16.78 49341.51 UPS B 98.66 0.00 135.53 97.10 3.49 16.32 68588.35
SandsCh 34.80 -0.50 49.35 29.85 5.45 19.79 35996.21 Saudi Arabia (SR) Vodafone♦ 160.70 0.02 239.65 142.60 8.40 -31.38 54056.6
ChStConEng RMB 6.32 0.15 7.75 4.91 2.36 8.46 38121.28 GenElectric 7.23 0.13 19.39 6.66 6.42 -2.15 62876.93 USBancorp 48.84 0.09 58.50 48.31 2.51 12.63 78929.98
SHK Props 113.90 0.40 139.60 99.50 3.51 6.95 42240.69 AlRajhiBnk 87.10 0.90 92.40 63.90 4.39 15.32 37735.28 WPP 870.80 1.40 1474 802.60 6.89 5.84 13903.98
ChUncHK 8.68 -0.01 11.94 8.10 0.66 41.94 33997.58 GenMills 37.58 0.20 60.69 37.22 5.06 10.76 22406.32 UtdHlthcre 262.64 -2.38 287.94 208.48 1.22 21.30 252668.66
Tencent 308.80 - 476.60 251.40 0.26 31.54 376323.43 Natnlcombnk 48.45 0.95 49.95 33.67 1.18 15.40 38751.72 United States of America ($)
CNNC Intl RMB 5.38 0.05 7.73 5.19 2.02 19.92 12135.12 GenMotors♦ 35.38 0.28 45.52 30.56 4.15 38.92 49935.46 UtdTech 118.17 -0.63 144.15 115.40 2.29 19.65 94652.3
SaudiBasic 123.80 2.80 131.40 100.80 3.24 17.92 99018.87 21stC Fox A 49.25 0.19 50.15 34.12 0.71 19.22 52055.9
CSR 7.81 - 8.82 5.81 2.11 18.24 4369.93 India (Rs) GileadSci♦ 66.94 1.37 89.54 64.27 3.11 41.71 86590.63 ValeroEngy 74.01 0.71 126.98 71.25 3.87 7.52 31403.05
SaudiTelec 90.50 2.80 93.50 66.90 4.22 18.47 48256.38 3M 197.69 1.59 259.77 181.98 2.57 27.40 115113.74
Daqin RMB 7.98 0.02 10.48 7.51 5.71 8.57 17191.81 Bhartiartl 315.20 - 547.50 276.85 1.62 218.65 17602.39 GoldmSchs♦ 170.63 -2.14 275.31 168.06 1.76 12.50 63469.88 Verizon 56.71 -0.37 61.58 46.09 4.05 7.47 234326.58
Gree Elec Apl 0.02 0.00 0.08 0.02 - -0.32 36.68 HDFC Bk 2130.2 - 2220 1809.3 0.61 30.15 80901.56 Singapore (S$) AbbottLb 70.58 -0.18 74.92 54.84 1.51 162.18 123954.61 Halliburton♦ 29.35 0.35 57.86 28.17 2.37 151.75 25711.96 VertexPharm 170.87 0.81 194.92 142.05 - 70.39 43667.2
GuosenSec RMB 8.77 - 14.13 6.71 1.66 25.83 10421.13 Hind Unilevr 1850.7 - 1869.5 1281.1 0.96 77.93 55966.98 DBS 23.94 0.25 31.28 22.65 4.87 10.94 44518.89 Abbvie 86.51 0.90 125.86 77.50 3.66 18.56 130129.75 HCA Hold♦ 124.10 -2.63 147.42 84.72 0.82 14.32 42710.32 VF Cp♦ 74.51 -0.64 97.00 72.09 2.15 44.65 29566.04
HaitongSecs 8.13 -0.06 13.58 6.31 3.20 14.24 3548.34 HsngDevFin 1960.35 - 2052.95 1644.5 0.93 20.09 47080.78 JardnMt US$ 67.40 0.95 67.90 55.80 2.25 16.41 49654.77 Accenture 154.52 -1.01 175.64 146.05 1.67 25.12 102837.21 Hew-Pack♦ 22.23 0.22 27.08 19.31 2.47 6.91 34534.18 Viacom♦ 28.62 0.05 35.55 26.56 2.70 7.06 10115.4
Hngzh HikVDT RMB 27.74 -0.23 44.59 22.32 1.75 24.72 31784.98 ICICI Bk 358.45 - 375.30 256.50 0.80 57.48 32247.31 JardnStr US$ 37.03 0.45 41.49 31.55 0.84 13.37 41027.43 Adobe 228.72 -1.29 277.61 172.92 - 48.70 111643.46 HiltonWwde♦ 72.48 0.62 88.11 66.01 0.80 16.54 21495.39 Visa Inc 134.02 -1.08 151.56 111.02 0.60 31.35 235496.85
Hunng Pwr 4.82 -0.03 6.18 4.04 2.29 22.53 2900.14 Infosys 694.40 - 754.90 499.20 2.48 17.60 42379.97 OCBC 11.34 0.22 14.04 10.36 3.34 10.51 34580.77 AEP 78.82 -1.19 81.05 62.71 3.04 20.53 38866.84 HomeDep 171.80 -0.49 215.43 167.00 2.29 19.00 194050.61 Walgreen 77.99 -0.75 86.31 59.07 2.04 15.92 73762.17
IM Baotou Stl RMB 1.57 0.01 2.59 1.44 0.31 24.95 7206.88 ITC 279.85 - 322.95 252.50 1.67 30.83 47873.41 SingTel 3.06 0.02 3.66 3.02 5.56 16.06 36370.26 Aetna 212.70 0.70 213.36 166.89 0.92 19.50 69637.98 Honywell 137.14 0.70 166.76 134.42 2.10 39.95 101523.14 WalMartSto♦ 91.88 0.03 109.98 81.78 2.22 53.50 266935.29
In&CmBkCh 5.54 0.04 7.64 5.10 4.85 6.15 61550.86 L&T 1408 - 1470 1175 1.96 27.19 27580.01 UOB 24.92 0.64 30.37 23.80 3.71 11.10 30449.91 Aflac 44.83 0.22 48.19 41.41 2.17 7.32 34128.15 HumanaInc 304.32 4.39 355.88 242.00 0.60 28.74 41748.71 WellsFargo 47.13 0.59 66.31 46.12 3.16 12.55 221852.42
IndstrlBk RMB 15.86 0.07 19.98 13.73 3.97 5.76 43787.61 OilNatGas 148.25 - 212.85 134.75 4.03 8.72 26579.04 South Africa (R) AirProd 157.17 1.76 175.17 148.44 2.62 24.66 34504.09 IBM 118.10 -1.80 171.13 114.09 5.03 19.51 107326 Williams Cos♦ 23.65 0.20 33.67 23.32 5.40 9.82 28629.32
Kweichow RMB 590.52 -2.44 803.50 509.02 1.81 24.03 107496.24 RelianceIn 1129.9 - 1329 862.65 0.51 18.52 100054.5 Firstrand 64.50 -1.20 77.25 55.00 4.13 13.62 25106.22 Alexion 113.78 4.35 140.77 102.10 - 170.51 25382.82 IllinoisTool 129.90 -1.14 179.07 119.38 2.49 24.16 43101.01 Yum!Brnds 90.34 -1.36 94.13 75.88 1.48 19.10 28213.35
Midea 1.60 - 1.90 1.40 2.97 28.05 44.04 SBI NewA 289.50 - 332.75 232.35 - -19.93 36094.87 MTN Grp 86.01 1.06 140.00 69.07 8.14 46.73 11245.79 Allegran 150.24 2.01 197.00 142.81 1.84 20.07 50673.84 Illumina 323.43 -3.03 372.61 207.51 - 72.39 47544.21 Venezuela (VEF)
New Ch Life Ins 33.30 -0.05 57.70 30.25 1.80 11.76 4408.04 SunPhrmInds 420.95 - 679.30 390.60 0.45 43.43 14110.04 Naspers N 2818.27 -1.74 3790 2362.66 0.20 8.36 85783.76 Allstate♦ 81.12 1.82 105.36 78.86 2.09 8.27 27941.16 Intcntl Exch♦ 77.36 0.26 82.65 66.92 1.15 18.06 44063.01 Bco de Vnzla 11.20 -1.30 17.60 0.02 553.95 - 135.71
PetroChina 5.31 -0.06 6.74 5.21 1.92 16.79 14341.34 Tata Cons 1994.3 - 2275.95 1247.18 1.22 27.88 104545.68 Alphabet 1059.53 7.82 1291.44 984.00 - 41.11 316768.94 Intel 48.34 0.48 57.60 42.04 2.35 15.52 220613.26
South Korea (KRW) Bco Provncl 920.00 10.00 1200 0.95 - 8.23 329.58
PingAnIns 73.35 -0.70 98.85 67.15 2.43 11.68 69927.83 Altria 53.35 0.62 74.38 52.45 5.18 9.83 100237.68 Intuit 200.78 -0.15 231.84 150.43 0.81 42.56 52104.13
Indonesia (Rp) HyundMobis 201000 2000 276500 165000 1.72 14.71 17293.72 Mrcntl Srvcs 2400 - 2650 1.30 0.01 10.73 485.44
PngAnBnk RMB 10.29 0.12 15.13 8.45 1.28 7.69 25603.07 Amazon 1568.87 -23.04 2050.5 1160.55 - 90.83 767128.21 John&John 129.27 -3.73 148.99 118.62 2.60 226.56 346697.41
Bk Cent Asia 22300 200.00 24700 16800 - - 38879.26 KoreaElePwr 32950 350.00 39450 23850 2.32 -19.44 18696.05
Pwr Cons Corp RMB 5.02 0.07 7.85 4.56 1.79 10.70 8107 AmerAir 32.67 0.26 59.08 30.24 1.18 13.62 15044.89 JohnsonCn♦ 32.08 0.11 41.53 30.60 3.14 14.30 29643.81
Israel (ILS) SK Hynix 62200 400.00 97700 61000 1.59 2.89 40022.76 Closing prices and highs & lows are in traded currency (with variations for that
SaicMtr RMB 25.11 0.38 37.66 24.13 7.07 8.08 41857.66 AmerExpr 103.67 -2.04 114.55 87.54 1.34 25.34 88557.05 JPMrgnCh 100.15 -0.14 119.33 99.09 2.39 12.80 333039.88
TevaPha 69.84 -2.56 94.75 57.75 0.44 -1.77 18864.08 SmsungEl 39150 200.00 54140 38650 3.76 5.68 206573.28 country indicated by stock), market capitalisation is in USD. Highs & lows are
ShenwanHong 0.11 -0.02 0.22 0.09 - 3.44 117.72 AmerIntGrp♦ 38.12 0.63 65.05 36.16 3.25 -6.14 33718.38 Kimb-Clark♦ 116.26 -1.16 123.50 97.10 3.30 26.19 40260.94
Italy (€) Spain (€) AmerTower 164.00 -2.60 168.58 130.37 1.77 63.75 72240.01 based on intraday trading over a rolling 52 week period.
ShgPdgBk RMB 10.78 0.16 14.00 9.17 0.90 6.07 43902.01 KinderM 16.29 0.12 19.83 14.69 3.86-841.87 35943.72 ♦ ex-dividend
Enel 5.01 0.00 5.48 4.22 3.83 13.07 57788.43 BBVA 4.71 -0.01 7.73 4.52 3.16 9.15 35572.77 Amgen 194.10 2.03 210.19 163.31 2.55 52.27 123684.26
Sinopec Corp 6.46 -0.02 8.35 5.45 9.52 9.94 21097.83 Kraft Heinz 47.85 0.39 80.67 47.18 5.05 5.86 58349.96 ■ ex-capital redistribution
ENI 13.96 -0.19 16.89 13.22 5.82 8.81 57513.49 BcoSantdr 4.03 -0.03 6.09 3.87 5.54 9.84 74123.04 Anadarko♦ 51.04 0.09 76.70 47.39 1.52 19.26 25738.5
Sinopec Oil RMB 1.89 -0.01 3.09 1.82 - -3.98 3298.24 Kroger 29.36 -0.20 32.74 22.85 1.64 6.92 23408.23 # price at time of suspension
Generali 14.32 -0.07 17.13 13.63 5.84 9.77 25345.23 CaixaBnk 3.36 -0.03 4.45 3.30 4.43 10.30 22763.26 Anthem♦ 271.24 -4.34 300.57 215.52 1.05 16.28 70154.08
Denmark (kr) Iberdrola 7.10 0.07 7.17 5.71 4.55 17.37 51479.29 L Brands 30.54 -0.29 63.10 25.89 7.76 11.55 8402.32
IntSPaolo 1.97 -0.04 3.35 1.86 10.12 8.76 39162.83 Aon Cp 153.80 -0.03 166.55 130.87 0.96 49.39 37041.82 LasVegasSd♦ 54.14 0.05 81.45 48.64 5.32 11.66 42421.63
DanskeBk 135.40 -2.65 251.90 123.80 7.28 6.30 18416.9 Inditex 23.60 -0.95 30.59 23.00 2.25 21.72 83383
Luxottica 51.80 -0.04 59.54 47.89 1.92 25.07 28492.03 Apple 168.04 2.56 233.47 150.24 1.57 14.59 797416.68 LibertyGbl 23.33 0.22 39.73 22.21 - -13.70 4767.8
MollerMrsk 8700 -188.00 11865 7520 1.76 -65.84 13287.72 Repsol 14.71 -0.08 17.51 13.67 5.88 8.50 26617.67
Unicred 10.55 -0.26 18.25 10.38 2.98 6.96 26667.76 ArcherDan 44.36 -0.25 52.07 39.28 2.89 11.41 24870.18 Lilly (E) 109.66 -2.27 119.84 73.69 1.95 241.27 116165.28
NovoB 305.00 -5.00 354.80 265.15 2.55 19.51 88558.06 Telefonica 7.83 0.04 8.60 6.59 5.06 13.62 46069.99

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
HyundMobis 201000.00 199000.00 2000.00 1.01 20000.00 11.0 3.88 Inditex 23.60 24.55 -0.95 -3.87 -3.01 -11.3 -9.61 Dec 17 date Coupon S* M* F* price yield yield yield US Dec 17 date Coupon S* M* F* price yield yield yield US
Ch Rail Cons 11.06 10.90 0.16 1.47 1.04 10.4 1.47 John&John 129.27 133.00 -3.73 -2.81 -15.99 -11.0 -11.56 High Yield US$ US$
CSR 7.81 7.81 0.00 0.00 0.62 8.6 6.84 H&M 142.80 156.12 -13.32 -8.53 -15.30 -9.7 -10.38 Qwest Capital Funding, Inc. 08/21 7.63 B+ WR BB 101.75 6.88 0.00 -0.01 - Barclays plc 01/28 4.34 BBB Baa3 A 91.84 5.49 -0.02 -0.02 2.58
Avago Tech 259.52 254.83 4.69 1.84 20.27 8.5 9.20 Mnstr Bvrg 52.54 52.69 -0.15 -0.28 -4.41 -7.7 -5.88 High Yield Euro Barclays plc 01/28 4.34 BBB Baa3 A 91.84 5.49 -0.02 -0.02 2.58
WPP 870.80 869.40 1.40 0.16 65.80 8.2 -99.00 CardinalHlth 48.99 50.06 -1.07 -2.14 -4.06 -7.7 -11.65 Aldesa Financial Services S.A. 04/21 7.25 - - B 49.20 45.13 0.75 5.96 42.38 Goldman Sachs Group, Inc. (The) 02/28 5.00 BBB+ A3 A 98.07 5.27 -0.02 0.23 2.36
Iberdrola 7.10 7.03 0.07 0.97 0.53 8.1 7.38 HCA Hold 124.10 126.73 -2.63 -2.08 -10.02 -7.5 -11.71 Southern California Edison Company 04/29 6.65 BBB+ A3 A- 109.72 5.40 -0.02 -0.14 2.49
BHPBilltn 33.53 32.40 1.13 3.49 2.35 7.5 3.92 CanNatRs 33.47 34.28 -0.81 -2.36 -2.51 -7.0 -6.30 Emerging US$ Southern California Edison Company 04/29 6.65 BBB+ A3 A- 109.72 5.40 -0.02 -0.14 2.49
Engie SA 12.87 12.91 -0.04 -0.31 0.88 7.3 5.45 Costco 207.25 207.06 0.19 0.09 -15.41 -6.9 -10.26 Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34 Westpac Banking Corporation 11/31 4.32 BBB Baa1 A+ 93.48 5.34 -0.02 0.11 2.43
SvnskaHn 102.55 102.90 -0.35 -0.34 6.53 6.8 5.01 SK Hynix 62200.00 61800.00 400.00 0.65 -4600.00 -6.9 -11.27 Brazil 01/23 2.63 BB- Ba2 BB- 93.75 4.33 0.07 -0.17 1.57
Colombia 03/23 2.63 BBB- Baa2 BBB 94.50 4.05 0.00 -0.22 1.29 Euro
Glencore 292.95 289.65 3.30 1.14 18.45 6.7 -99.02 McKesson 114.63 116.66 -2.03 -1.74 -8.47 -6.9 -7.48 Barclays plc 08/29 2.29 BBB Baa3 A 84.16 4.16 -0.03 -0.07 1.25
PernodRic 146.65 148.40 -1.75 -1.18 9.20 6.7 4.45 Sberbank 182.30 184.93 -2.63 -1.42 -12.71 -6.5 -8.51 Poland 03/23 3.00 A- A2 A- 98.04 3.50 -0.04 -0.13 0.74
Turkey 03/23 3.25 - Ba3 BB 87.69 6.61 -0.10 -0.55 3.85 AT&T Inc. 12/29 2.60 BBB Baa2 A- 100.35 2.56 -0.03 -0.02 -0.35
RioTinto 3762.50 3675.50 87.00 2.37 235.50 6.7 -99.04 Adobe 228.72 230.00 -1.29 -0.56 -15.38 -6.3 -4.46 AT&T Inc. 12/29 2.60 BBB Baa2 A- 100.35 2.56 -0.03 -0.02 -0.35
RollsRoyce 807.80 808.60 -0.80 -0.10 48.60 6.4 -99.00 DiscFinServ 60.86 61.82 -0.96 -1.55 -3.88 -6.0 -14.01 Mexico 10/23 4.00 BBB+ A3 BBB+ 99.15 4.20 -0.01 -0.14 1.44
Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07 HBOS plc 03/30 4.50 BBB- Baa1 A- 104.25 2.50 0.00 0.03 -0.41
ChStConEng 6.32 6.17 0.15 2.43 0.38 6.4 14.70 Telstra 2.90 2.87 0.03 1.05 -0.18 -5.8 -4.61
Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80 Yen
OilNatGas 148.25 148.25 0.00 0.00 8.85 6.3 -5.18 Gzprm neft 153.53 155.40 -1.87 -1.20 -9.47 -5.8 0.24
Russia 06/28 12.75 BBB- Ba1 BBB- 158.09 5.00 -0.01 -0.13 2.09 Poland 11/27 2.50 - A2 A- 109.69 1.34 -0.01 -0.04 -
EDF 14.20 14.24 -0.04 -0.28 0.80 6.0 -5.36 Delphi 14.89 14.56 0.33 2.27 -0.89 -5.6 -11.59
Enel 5.01 5.02 0.00 -0.08 0.27 5.7 11.42 Delta 53.16 53.51 -0.35 -0.65 -3.16 -5.6 -4.94 Brazil 02/47 5.63 BB- Ba2 BB- 93.80 6.09 0.02 -0.29 - £ Sterling
BMW 74.00 74.27 -0.27 -0.36 3.90 5.6 5.56 UPS B 98.66 98.66 0.00 0.00 -5.74 -5.5 -10.47 Emerging Euro Cooperatieve Rabobank U.A. 05/29 4.63 BBB+ Baa1 A 107.64 3.73 -0.05 -0.12 0.82
KoreaElePwr 32950.00 32600.00 350.00 1.07 1700.00 5.4 17.89 Schlmbrg 39.71 39.10 0.61 1.56 -2.26 -5.4 -17.60 Mexico 04/21 2.38 BBB+ A3 BBB+ 104.75 0.31 -0.01 -0.03 -2.44 innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 129.21 3.17 -0.01 -0.09 0.26
Nokia 5.22 5.28 -0.06 -1.21 0.26 5.3 2.11 Suncor En 39.53 39.62 -0.09 -0.23 -2.22 -5.3 -9.48 Brazil 04/21 2.88 BB- Ba2 BB- 104.60 0.84 -0.04 -0.14 -1.91 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+ 106.00 1.32 -0.02 0.01 -1.44 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 112.13 1.58 0.00 -0.02 -1.33
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
Dec 17 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Dec 17 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 2.00-2.25 27-09-2018 1.75-2.00 1.75-2.00 1.25-1.50 Index change change change 1 month 1 year VIX 22.61 0.98 21.63 50.30 8.90 Dec 17 Price £ Yield Day Week Month Year High Low £m
US Prime 5.25 27-09-2018 5.00 5.00 4.25 Markit IBoxx VXD 22.47 0.57 21.90 40.21 4.07 - - - - - - - - -
US Discount 2.75 27-09-2018 2.50 2.50 1.75 ABF Pan-Asia unhedged 188.68 -0.31 0.34 -0.92 1.84 0.07 VXN 28.00 0.38 27.62 38.11 11.67 - - - - - - - - -
Euro Repo 0.00 16-03-2016 0.00 0.00 0.00 Corporates( £) 339.68 0.28 1.32 -2.02 0.51 -1.83 VDAX - - - - - Tr 4.5pc '19 100.82 0.72 4.35 16.13 12.50 80.00 104.97 100.82 36.35
UK Repo 0.75 02-08-2018 0.50 0.50 0.25 Corporates($) 271.93 0.08 0.88 -2.76 0.88 -2.76 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 104.84 0.75 4.17 13.64 8.70 78.57 109.55 104.84 33.70
Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10 Corporates(€) 223.52 0.12 0.14 -1.33 -0.33 -1.86 ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 101.58 0.74 4.23 12.12 5.71 37.04 102.98 101.24 32.84
Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25 Eurozone Sov(€) 234.41 0.02 0.62 0.66 1.55 -0.37 Tr 4pc '22 110.21 0.78 4.00 13.04 4.00 30.00 114.15 109.81 38.39
Gilts( £) 326.74 0.33 2.85 1.04 2.76 0.79 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 124.26 0.97 3.19 12.79 -5.83 7.78 128.62 122.06 35.49
INTEREST RATES: MARKET Global Inflation-Lkd 259.21 0.09 1.63 -3.57 0.85 -2.80 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 100.70 1.16 2.65 8.41 -8.66 -2.52 101.52 96.41 23.73
Over Change One Three Six One Markit iBoxx £ Non-Gilts 335.92 0.25 1.21 -1.34 0.68 -1.24 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 134.04 1.46 1.39 10.61 -8.75 -0.68 136.24 128.48 35.86
Dec 17 (Libor: Dec 14) night Day Week Month month month month year Overall ($) 236.73 0.00 0.85 -1.31 0.85 -1.31 Australia 11/20 1.75 99.55 1.99 -0.01 0.07 -0.02 -0.08 Tr 4.25pc '36 139.08 1.64 1.23 8.61 -7.87 1.23 141.54 133.08 30.11
US$ Libor 2.18475 0.000 1.259 0.000 2.45500 2.80069 2.90056 3.09769 Overall( £) 326.40 0.30 2.35 0.32 2.12 0.17 11/28 2.75 102.42 2.47 -0.01 0.02 -0.13 -0.16 Tr 4.5pc '42 153.18 1.77 1.14 8.59 -7.33 2.31 156.90 145.84 26.95
Euro Libor -0.45857 -0.001 -0.033 0.004 -0.40971 -0.35571 -0.32486 -0.21229 Overall(€) 229.68 0.05 0.40 0.14 0.89 -0.67 Austria 10/23 1.75 109.28 -0.16 -0.03 -0.01 -0.03 -0.07 Tr 3.75pc '52 151.12 1.74 1.16 8.75 -7.94 6.75 156.17 141.38 23.87
£ Libor 0.68500 0.001 0.461 0.000 0.73000 0.90088 1.02613 1.16100 Treasuries ($) 223.32 -0.06 0.85 -0.60 0.85 -0.60 02/47 1.50 102.95 1.37 0.00 0.04 -0.03 -0.03 Tr 4pc '60 168.47 1.68 0.60 9.09 -9.68 8.39 176.65 156.07 23.89
Swiss Fr Libor 0.003 -0.82180 -0.73220 -0.65260 -0.52420 FTSE Belgium 06/21 1.50 104.76 -0.42 -0.01 0.00 0.01 0.01 Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.
Yen Libor 0.027 -0.14767 -0.10367 -0.00033 0.11317 Sterling Corporate (£) 110.21 -0.02 - - -0.67 -5.40 03/28 5.50 143.32 0.67 -0.01 0.02 0.01 0.21
Euro Euribor
Sterling CDs
0.000
0.000
-0.31100
0.80000
-0.12800
0.93000
-0.24800
1.04500
-0.14300 Euro Corporate (€) 103.97 -0.01 - - -0.21 -3.60 Canada 02/20 1.25 99.22 1.96 -0.02 0.04 -0.12 0.36 GILTS: UK FTSE ACTUARIES INDICES
Euro Emerging Mkts (€) 365.31 -7.32 - - -1.44 -45.48 06/28 2.00 99.17 2.10 -0.04 0.02 -0.18 0.19
US$ CDs 0.000 2.29000 2.60000 2.87000 Eurozone Govt Bond 109.49 -0.05 - - 1.34 -3.01 Denmark 11/20 0.25 101.64 -0.60 0.00 0.00 0.01 -0.12 Price Indices Day's Total Return Return
Euro CDs - - - - 11/23 1.50 108.64 -0.25 -0.02 -0.01 -0.02 -0.16 Fixed Coupon Dec 17 chg % Return 1 month 1 year Yield
CREDIT INDICES Day's Week's Month's Series Series 1 Up to 5 Years 92.06 -0.07 2427.63 0.02 0.33 0.80
Short 7 Days One Three Six One Index change change change high low Finland 09/20 0.38 101.58 -0.53 -0.01 -0.01 0.01 0.04
07/28 2.75 120.93 0.50 -0.02 0.01 -0.03 -0.01 2 5 - 10 Years 180.72 -0.22 3529.84 0.67 0.99 1.09
Dec 17 term notice month month month year Markit iTraxx 3 10 - 15 Years 209.88 -0.26 4334.63 1.25 1.41 1.42
Euro -0.62 -0.32 -0.62 -0.32 -0.70 -0.40 -0.48 -0.18 -0.46 -0.16 -0.38 -0.08 Crossover 5Y 342.22 8.05 -14.05 - 356.27 316.10 France 11/20 0.25 101.45 -0.49 0.00 0.03 0.05 -0.02
4 5 - 15 Years 187.22 -0.23 3728.43 0.87 1.11 1.21
Sterling 0.45 0.55 0.75 0.85 0.88 0.98 0.97 1.12 1.13 1.28 Europe 5Y 81.69 1.07 -6.38 4.35 88.07 66.84 05/23 1.75 108.42 -0.14 -0.02 0.01 0.02 0.00
5 Over 15 Years 333.28 -0.27 5241.50 3.37 -0.08 1.72
Swiss Franc - - - - - - - - - - - - Japan 5Y 76.64 1.69 -6.73 14.47 83.92 55.54 05/28 0.75 100.90 0.65 -0.01 0.03 0.03 0.00
7 All stocks 177.24 -0.20 3619.74 1.68 0.39 1.58
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 104.05 1.21 -7.54 4.49 111.59 77.83 Germany 10/20 0.25 101.65 -0.64 -0.02 -0.02 -0.01 0.01
US Dollar 2.11 2.41 2.21 2.51 2.43 2.73 2.56 2.86 2.68 2.98 2.91 3.21 08/23 2.00 111.04 -0.35 -0.03 0.00 -0.03 -0.13 Day's Month Year's Total Return Return
Markit CDX 07/28 4.75 143.04 0.19 -0.02 0.00 -0.04 -0.19
Japanese Yen -0.15 0.05 -0.40 -0.10 -0.75 -0.25 -0.20 -0.10 -0.10 0.20 0.00 0.30 Index Linked Dec 17 chg % chg % chg % Return 1 month 1 year
Emerging Markets 5Y 198.85 1.12 -7.95 -2.58 219.33 186.13 08/48 1.25 109.40 0.89 0.00 0.00 -0.09 -0.17
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 309.86 -0.09 0.07 -0.31 2492.07 0.07 1.33
Nth Amer High Yld 5Y 416.53 10.73 -5.26 17.03 425.15 325.08 Greece 01/23 3.50 100.81 3.29 0.00 0.01 0.06 -0.26
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 2 Over 5 years 736.81 -0.32 3.93 2.51 5525.86 3.93 3.00
Nth Amer Inv Grade 5Y 79.19 2.38 -3.58 4.84 82.77 57.99 01/28 3.75 96.30 4.25 0.02 0.02 -0.02 0.13
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 3 5-15 years 494.31 -0.30 1.40 2.94 3874.44 1.40 3.90
Ireland 10/20 5.00 110.11 -0.48 0.00 0.00 0.00 0.09 4 Over 15 years 946.47 -0.33 4.83 2.36 6930.81 4.83 2.69
05/30 2.40 112.97 1.18 0.00 0.06 0.05 0.22 5 All stocks 663.73 -0.30 3.60 2.27 5058.87 3.60 2.87
Italy 06/20 0.35 99.82 0.47 0.01 -0.12 -0.18 0.57
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED 10/23 0.65 94.26 1.90 -0.01 -0.23 -0.32 1.01 Yield Indices Dec 17 Dec 14 Yr ago Dec 17 Dec 14 Yr ago
09/28 4.75 116.29 2.82 -0.02 -0.19 -0.26 0.91 5 Yrs 0.82 0.79 0.65 20 Yrs 1.77 1.76 1.73
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
03/48 3.45 97.93 3.57 -0.01 -0.14 -0.23 - 10 Yrs 1.28 1.26 1.21 45 Yrs 1.69 1.68 1.52
Crude Oil† Jan 51.66 0.51 Corn♦ Mar 385.00 0.25 Dec 14 Dec 14 Prev return stock Market stocks
Japan 06/21 0.10 100.65 -0.16 -0.01 -0.01 -0.03 -0.03 15 Yrs 1.63 1.61 1.58
Brent Crude Oil‡ 59.84 -0.41 Wheat♦ Mar 535.50 5.50 Can 4.25%' 21 110.26 0.737 0.768 0.25 5.18 74300.52 8
12/23 0.60 103.69 -0.14 -0.02 -0.01 -0.04 -0.05
RBOB Gasoline† Dec 1.45 0.01 Soybeans♦ Jan 905.25 5.25 Fr 2.25%' 20 106.20 -1.525 -1.520 0.00 20.31 246919.35 15
12/28 1.90 118.39 0.06 -0.01 -0.02 -0.04 -0.04 inflation 0% inflation 5%
Heating Oil† Dec 1.61 0.00 Soybeans Meal♦ Jan 308.70 1.30 Swe 0.25%' 22 115.01 -2.007 -2.012 -0.06 33.80 234910.91 7
09/47 0.80 100.56 0.78 -0.01 -0.02 -0.03 -0.03 Real yield Dec 17 Dur yrs Previous Yr ago Dec 17 Dur yrs Previous Yr ago
Natural Gas† Dec 3.69 -0.11 Cocoa (ICE Liffe)X Mar 1658.00 -7.00 UK 2.5%' 20 359.88 -2.285 -2.240 0.16 6.58 689027.39 29
Netherlands 01/20 0.25 101.01 -0.68 -0.02 0.00 0.01 0.01 Up to 5 yrs -2.10 2.32 -2.14 -2.00 -2.56 2.34 -2.60 -2.45
Ethanol♦ - - Cocoa (ICE US)♥ Mar 2260.00 30.00 UK 2.5%' 24 368.53 -2.245 -2.182 0.97 6.82 689027.39 29
01/28 5.50 146.77 0.28 -0.02 0.00 -0.03 -0.12 Over 5 yrs -1.71 24.10 -1.73 -1.65 -1.73 24.17 -1.74 -1.68
Uranium† Dec 29.80 0.05 Coffee(Robusta)X Jan 1450.00 8.00 UK 2%' 35 281.77 -1.928 -1.888 4.73 9.08 689027.39 29
Carbon Emissions‡ - - Coffee (Arabica)♥ Mar 101.55 -0.65 New Zealand 05/21 6.00 108.54 2.33 0.00 0.03 -0.02 -0.32 5-15 yrs -2.06 8.64 -2.09 -1.77 -2.15 8.66 -2.19 -1.90
US 0.625%' 21 98.79 1.103 1.113 -0.10 35.84 1303786.14 39
White SugarX 339.70 -4.00 04/23 5.50 114.65 1.95 -0.03 0.02 -0.07 -0.42 Over 15 yrs -1.68 29.13 -1.69 -1.64 -1.69 29.16 -1.70 -1.66
Diesel† - - US 3.625%' 28 122.05 1.129 1.113 -0.06 16.78 1303786.14 39
Sugar 11♥ 12.65 -0.02 Norway 05/21 3.75 106.08 1.20 -0.01 0.05 0.04 0.32 All stocks -1.72 22.28 -1.73 -1.66 -1.74 22.37 -1.75 -1.69
Base Metals (♠ LME 3 Months) Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
Aluminium 1931.50 6.00 Cotton♥ Mar 79.43 -0.17 05/23 2.00 102.39 1.44 -0.01 0.04 0.03 0.28 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 1400.00 -10.00 Orange Juice♥ Jan 140.00 0.50 Portugal 06/20 4.80 107.68 -0.33 -0.03 -0.11 -0.13 -0.28 ©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSE
amount.
Copper 6091.00 -49.50 Palm Oil♣ - - 10/23 4.95 121.70 0.42 -0.02 -0.14 -0.19 -0.43 Gilt Closing Prices information contained herein is proprietary to
Lead 1931.50 -22.50 Live Cattle♣ Dec 119.75 0.00 BONDS: TEN YEAR GOVT SPREADS Spain 01/21 0.05 100.35 -0.11 -0.01 -0.02 -0.02 -0.10 Tradeweb; may not be copied or re-distributed; is not warranted to be
Nickel 11095.00 55.00 Feeder Cattle♣ Jan 147.45 -0.55 10/28 5.15 134.27 1.41 -0.01 -0.04 -0.08 -0.18 accurate, complete or timely; and does not constitute investment advice.
Tin 19450.00 60.00 Lean Hogs♣ Feb 64.78 0.00 Spread Spread Spread Spread Sweden 12/20 5.00 110.74 -0.46 0.00 -0.03 -0.01 0.01 Tradeweb is not responsible for any loss or damage that might result from the use of this information.
Zinc 2539.00 6.00 Bid vs vs Bid vs vs 12/26 9.41 170.07 0.48 -0.02 0.00 -0.02 -0.06
% Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds Switzerland 04/21 2.00 106.57 -0.75 -0.04 -0.03 0.00 -0.11 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Precious Metals (PM London Fix)
Gold 1235.35 -7.40 Dec 14 Month Year 04/28 4.00 138.66 -0.13 -0.02 0.00 -0.03 -0.02 at the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, nor
Australia 2.47 2.28 -0.44 Italy 2.82 2.63 -0.09
Silver (US cents) 1458.00 -10.00 S&P GSCI Spt 402.60 -6.91 -4.10 United Kingdom 01/21 1.50 101.62 0.72 -0.06 -0.02 -0.04 0.18 Morningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT nor
Austria -0.16 - - Japan 0.06 -0.14 -2.85
Platinum 784.00 -10.00 DJ UBS Spot 80.61 -3.97 -4.13 Belgium 0.67 0.47 -2.24 Netherlands 0.28 0.08 -2.64 07/23 0.75 99.47 0.87 -0.04 -0.01 -0.07 0.01 Morningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on the
Palladium 1233.00 -29.00 TR/CC CRB TR 185.04 -4.38 - Canada 2.10 1.91 -0.81 Norway 1.44 - - 12/27 4.25 126.76 1.11 -0.04 -0.02 -0.10 -0.07 use of the listed information. For all queries e-mail [email protected]
Bulk Commodities M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark -0.25 - - Portugal 0.42 - - 07/47 1.50 93.46 1.79 -0.04 -0.04 -0.27 0.06
Iron Ore 70.55 0.65 UBS Bberg CMCI TR 14.17 -3.15 -2.89 Finland 0.50 0.31 -2.41 Spain 1.41 1.21 -1.50 United States 11/20 1.75 98.15 2.75 -0.03 0.02 -0.08 0.83 Data provided by Morningstar | www.morningstar.co.uk
GlobalCOAL RB Index 98.50 0.50 LEBA EUA Carbon 23.76 20.67 229.54 France 0.65 0.46 -2.26 Switzerland -0.13 -0.32 -3.04 12/23 2.25 97.63 2.76 -0.03 0.03 -0.12 0.55
Baltic Dry Index 1406.00 5.00 LEBA CER Carbon 0.26 -3.70 52.94 Germany 0.19 0.00 -2.72 United Kingdom 1.11 0.92 -1.80 11/28 5.25 120.02 2.91 -0.02 0.04 -0.11 0.55
LEBA UK Power 1620.00 -31.36 12.89 Greece 4.25 4.05 1.34 United States 2.91 2.72 0.00 11/47 2.75 92.41 3.15 -0.02 0.00 -0.17 0.44
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.
Tuesday 18 December 2018 ★ FINANCIAL TIMES 17

MARKETS & INVESTING

Tail Risk
Analysis. Cross asset
End of easy money
European investors braced era heralds a grim
global outlook

for turbulent year ahead COLBY SMITH

In the decade since the

financial crisis, central
bankers have taken on the
task of reinvigorating the
global economy.
Economists’ EU GDP forecast
By keeping interest rates low and
for 2019 pared back buying up trillions of dollars’ worth of
Annual % change government bonds and other assets,
2.0 these institutions helped to prop up
1.9 growth at a time when the world
desperately needed it.
1.8 Of course, that era of easy monetary
1.7 policy is coming to a close.
1.6 Last week, the European Central
Bank said it would end its crisis-era
1.5 stimulus programme this month,
Jan 2018 Dec
although it would still reinvest in the
European Central Bank region’s bond markets.
balance sheet Ahead of this week’s meeting on
As % of GDP
monetary policy, the Federal Reserve is
gearing up for its ninth interest rate
40
increase since it began normalising
rates in December 2015. And the Bank
30 of Japan is considering the same,
although in fits and starts.
20 As central banks turn off their
spigots of easy money, governments
around the world are stepping in to fill
10 the void. But even with these
2005 10 15 18
measures, the global economy is set to
Italy financial stocks fall slow in the coming years.
FTSE Italia All-Share Banks Donald Trump, US president,
Sector index spearheaded this fiscal loosening in
early 2017 with a large corporate tax
200 cut, which Republican-controlled
180 Congress followed up with a $1.3tn
spending bill.
160 To grapple with its own domestic
slowdown, China has instituted
140 stimulus measures that include tax
cuts.
120 In Europe, Germany is (finally)
Jan 2018 Dec
Sources: Consensus Economics; Refinitiv
planning to spend a bit more next year,
with fiscal easing of about 0.75 per
cent of gross domestic product,
Political tensions, the end of ramps up ahead of the European Parlia- sion by the central bank for both next The European quantitative easing’s withdrawal is yet according to Citi’s Giada Giani.
ment elections in May. year and 2020 could exert a greater Central Bank is priced into assets. Canada is increasing tax incentives
QE and economic downgrades France’s President Emmanuel drag. forecasting That could mean further falls and vol- for businesses and Japan’s Shinzo Abe
Macron promised last week to boost A strong sensitivity to global trade lower growth in atility ahead. “Taper is in the market has announced “policy offsets” to ease
are pointing to testing times public spending in a bid to assuage pop- tension and to potential Brexit fallout the region but the [QE] flows are too big to say pressure on households as a result of a
ulist protests, showing that Europe’s fis- also pose a risk. Arne Dedert/dpa/AP
[taper] is in the price,” said Michael planned tax increase.
KATE ALLEN, EVA SZALAY cal challenge can spread to key euro- However, looking beyond the early Hintze, head of London-based hedge But despite governments’ best
AND LAURENCE FLETCHER zone states. months of next year, the euro might fund CQS. efforts, the outlook through 2020
“Representative democracies find benefit from a waning US dollar. Sir Michael, whose firm runs $18bn in looks grim.
With politics souring, the economic themselves under serious pressure and US growth is slowing and inflation assets, added that the ending of QE A synchronised, global fiscal
outlook darkening and the European increasingly bypassed by the direct — reduced in November while the US Fed- would put pressure on European invest- expansion may be able to moderate
Central Bank nonetheless switching off and frequently confrontational — eral Reserve has signalled it is closer to ment grade bonds, which should pro- the pace of an eventual slowdown by
its long-running bond-buying stimulus expression of political and social discon- reaching the point where no further vide attractive investment opportuni- some degree or put it off longer than
programme, investors are braced for a tent,” said Didier Saint-Georges, manag- rises are needed to balance the econ- ties in time. otherwise would have been the case.
rough ride in European markets in the ing director at French asset manager omy. Whichever way markets move, the But with a trade war between the US
opening months of next year. Carmignac. “It is possible that, as early as mid- ending of QE is likely to be welcomed by and China unresolved, Brexit political
The ECB is likely to keep the option The impact, assuming a boost to fiscal 2019, the relative growth support to the active fund managers, who have long chaos, riots in France and an Italian
open for further potential support if spending, is a blow to bond markets, he dollar may be perceived to be fading,” complained about the impact of central debt crisis, there is certainly no
needed, most likely in the form of cheap added. said Citi in its global FX outlook for bank stimulus. shortage of strife weighing on global
funding for banks. Chris Iggo, fixed income chief invest- 2019. QE has provided an ideal environ- sentiment.
Still, 2019 will be a big challenge, ment officer at Axa Investment Manag- The midpoint consensus is for the ment for many passive funds such as In the words of David Lipton, a top
throwing up a test for active managers ers, echoed that view. “Fiscal slippage in euro to trade at $1.20 by the end of next index trackers with the S&P 500 equi- IMF official, “storm clouds” are
to prove their credentials. The euro, a period of slowing growth with con- year, up from its current level of around ties index in particular offering a long gathering. Time to grab that umbrella.
government bonds and bank stocks are cerns about the lack of structural $1.13, and after a period of weakness in and relatively smooth ascent for inves-
all in line for a shake-up. reform at the member state and com- the first six months of 2019. tors who simply buy the market and
“When you remove the crutch, the munity level pose the risk of wider sov- “We see the euro trading at $1.30 by hold on for the ride.
unsteady walker will be more likely to ereign spreads,” he warned. the end of next year as we have a very Active managers, in contrast, have
be shakier or fall, unless they’ve recov- Falling bond prices also feed through bearish view on the dollar for 2019,” said ‘Taper is in often struggled, blaming QE for causing
ered from the underlying problem,” said into European banks’ balance sheets in Bilal Hafeez, head of European fixed assets to move in unison with insuffi-
Cutler Cook, head of European equity the so-called ‘doom loop’, weighing on income research at Nomura. the market cient differentiation between cheap and
investing at Californian investment the outlook of a sector that is still suffer- Fund managers are reluctant to pre- but the expensive or good and bad ones.
house PAAMCO. ing lingering problems after the 2012-14 dict which way asset prices will head as Mr Hintze said he expected valuation FastFT
Politics is a prominent concern. With debt crisis. large-scale bond purchases cease, not QE flows dispersion in credit as QE ends. “That Our global
this year’s heavy drop in Italian govern- For the euro, it is a complex picture. least because there are so many eco- are too will provide opportunity for active man- team gives you
ment bonds still fresh in the mind, Typically, a shift to tighter policy would nomic and political factors also buffet- agers,” he said. market-moving
investors fear that Rome’s budgetary boost the currency but the negative ing markets. big to say His fund is betting on Italian senior news and views,
battle with Brussels may be merely the risks to the region’s growth, also noted But, despite a sell-off in equities and taper is in credit and some EU bank and insurance 24 hours a day Political upsurges in France have
precursor for a wider controversy about by ECB President Mario Draghi, and the credit markets in recent months, it companies to perform well, relative to ft.com/fastft added to storm clouds for markets
debt sustainability as political rhetoric lower projections for economic expan- seems unlikely that the full effect of the price’ the region’s high-yield bonds.

Equities Equities

US financial stocks slide into bear Brussels set to extend access to Swiss
territory as growth worries intensify exchanges for another six months
PETER WELLS — NEW YORK 2.87 per cent while the drop in the concern about loan demand in the US JIM BRUNSDEN AND PHILIP STAFFORD border market for share trading would plained that current arrangements
yield on the two-year Treasury has and credit quality — particularly in the have fragmented from January. allow Switzerland extensive access
Mounting investor concerns about the Brussels has delayed a threat to isolate
been cushioned by expectations that $1.3tn leveraged loan market, which has EU institutions would have needed to without following the bloc’s rules. Fix-
outlook for economic growth and a less the Swiss stock market from the rest of
the US Federal Reserve will tomorrow sold off sharply in recent weeks. use a local broker to access some of ing the gaps has become even more of a
benign backdrop for profits has pushed the continent.
raise its official interest for a fourth time According to the Fed’s October survey Europe’s most actively traded stocks, priority for the bloc in the light of Brexit.
US financial stocks into a bear market.
this year. of loan demand in the US, banks indi- It represents a reprieve for global inves- such as Nestlé, Novartis and Roche, Market access rights to Swiss equities
The S&P 500 financial sector index fell The narrow gap between short-term cated demand for commercial and tors concerned that they would only be while Swiss investors would have to go are one of the main levers at Brussels’
as much as 0.9 per cent yesterday in and long-term rates squeezes banks’ industrial loans, as well as residential able to buy shares in some of Switzer- through EU banks and brokers to buy disposal to pressure the country to rat-
volatile trading, leaving it down almost profits if they are borrowing over a real estate loans, had been weak. land’s biggest companies through local and sell stock such as Deutsche Bank or ify the deal. Around a third of Swiss
21 per cent from a late January peak. shorter time horizon and then lending “Demand for loans for both small and institutions. Telefónica. blue-chips are traded on London-based
Crossing the 20 per cent retreat over a longer period. The gap between large business has tapered off while sup- Swiss stocks have become an unlikely Mark Hemsley, chief executive of venues. Six, the Swiss exchange,
threshold from a most recent high typi- two-year and 10-year Treasury yields ply has increased,” said Max Gokhman, bargaining chip in a battle between the declined to comment. It has previously
cally defines the start of a bear market, this month hit its narrowest since 2007. head of asset allocation at Pacific Life Swiss government and the EU over the described achieving unlimited equiva-
which the sector first entered on Friday At the same time, there has also been Fund Advisors. “That is a bad recipe for “institutional agreement” that will gov-
‘In theory, it was going to lence as “our highest priority”.
as US stocks swooned. any business if demand for your prod- ern their future relationship, which saw cause the Swiss problems The six-month extension is set to
A multi-month sell-off has left large ucts is diminishing.” Brussels threaten to cut off market legally take effect before the end of the
institutions including Goldman Sachs, The S&P 500 financials index was last access rights by the end of the year.
but it was EU customers year, once EU national governments
Citigroup, Morgan Stanley and Wells briefly in bear market territory in Feb- The Swiss government postponed a that would have suffered’ have had a chance to review the plan.
Fargo nursing declines of more than ruary 2016. However, some analysts decision this month on the agreement However, Markus Ferber, vice-chair
20 per cent each for 2018. said history suggested that bank stocks and decided to hold a public consulta- Cboe Europe, the largest trader of Swiss of the EU parliament’s economics com-
Although the US economy has might be at an inflection point. tion, leaving Brussels to choose whether shares in the EU, said the decision from mittee, criticised the decision to grant
remained in robust shape, the bond “Once you have that maximum pain, to follow through with its threat. Brussels had avoided a “major incon- only a six-month extension. “Either
market has already begun to anticipate after the curve has inverted or flattened, Valdis Dombrovskis, the EU commis- venience” for many of its customers. Switzerland fulfils the equivalence cri-
a weaker picture for both growth and the next six months tend to be much sion’s vice-president for financial serv- “In theory, it was going to cause the teria and then equivalence should be
inflation. Central to banks’ fortunes is better,” said Christopher Harvey, head ices policy, said yesterday that it would Swiss problems but in the end it was EU granted indefinitely or it does not and
the yield curve, which illustrates the dif- of equity strategy at Wells Fargo Securi- extend so-called “equivalence” arrange- customers that would have suffered,” he then there should not be any equiva-
ferences between short-term and long- ties, citing figures dating back to 1994. ments with Switzerland to “ensure con- said. “The Swiss market probably would lence. Given that Switzerland already
term borrowing costs. “On average, we have seen bank outper- tinuity for portfolio managers and bro- have liked to take all the business back.” enjoys equivalence status, the matter
The yield on the benchmark 10-year form by about 8 per cent over that next kers active in Swiss equities”. The new institutional agreement for could not be clearer in the Swiss case.”
US government bond has fallen from Citi is among a group of banks hit by six-month time period.” Without an equivalence deal for Swiss EU-Swiss relations is a priority for the Additional reporting by Ralph Atkins in
3.25 per cent in early November to falls of more than 20% each for 2018 Additional reporting by Nicole Bullock exchanges, Europe’s integrated cross- commission, which has long com- Zurich
18 ★ Tuesday 18 December 2018

The day in the markets A dovish hike by Fed

What you need to know
will face a struggle to
3 Global growth concerns keep world
calm investor nerves
US tech stocks extend losses as global growth worries linger
stock markets under pressure
Nasdaq Composite index
3 All eyes turn to US Federal Reserve
rate decision tomorrow 8,500
3 Dollar index slips from 16-month high
3 Brent oil dips below $60 a barrel
Mohamed El-Erian
8,000
Persistent concerns about the health of
the global economy made for another Markets Insight
nervous session for world stock markets,
7,500
although Wall Street managed to pare

T
early losses and European indices pulled his week’s meeting of the the synchronised pick-up in global this camp is that a significant policy
off the day’s lows. US Federal Reserve was growth that characterised 2017, eco- U-turn would solidify investors’ percep-
The dollar eased back from a 16-month 7,000 supposed to be something nomic momentum was decelerating. tion of a “Powell Put” — or that the cen-
high touched on Friday against a basket of a non-event. Instead, the It is a phenomenon that has wors- tral bank can be easily deterred by an
of currencies, with the yen and Swiss central bank’s top policy- ened, according to last week’s estimates eruption of market volatility — and, in
franc in particular gaining ground, while 6,500 making committee will find itself for Chinese industrial production and putting off rate rises now, increase the
the nervous mood across equity markets Jan 2018 Dec gathering against a backdrop of growing retail sales, as well the latest GDP num- probability of much worse economic
helped fuel demand for US Treasuries. Source: Refinitiv
economic uncertainty, volatile markets bers out of Europe and Japan. and financial dislocations in the future.
The big focus this week will be the US and contradictory policy signals. Last week was capped by the Euro- Nor do they want to see a softening of
Federal Reserve’s decision on interest Instead of simply delivering a well- pean Central Bank confirming its inten- Fed policy misinterpreted as evidence
rates tomorrow — a 25 basis point rise is telegraphed interest rate rise to cap tion to terminate its own QE pro- that the central bank is buckling to pres-
widely expected — and whether the down from three — but for 2020 to be sentiment among US homebuilders fell another year of progress in the “beauti- gramme at the end of year, deepening sure from Donald Trump.
central bank signals fewer increases next unchanged at one rate hike.” this month to its lowest level since 2015. ful normalisation” of monetary policy, the shift away from the global regime of The most likely outcome this week is a
year via its “dot plot” projections, “We also expect some tweaks to the Global growth worries also kept oil opinion on what the Fed should do is all ample and predictable liquidity. compromise — or what is called a
particularly given a more dovish shift in statement, particularly regarding the prices under pressure with Brent crude over the place. Given the weaker global economic “dovish hike”. In this scenario, the Fed
its communications. need for ‘further gradual increases’ in dipping back below the $60-a-barrel Furthermore, rather than damp picture and central bank liquidity thin- would raise rates tomorrow but at the
“Markets will struggle to make much rates, which was hinted at in the mark and West Texas Intermediate unsettled markets, there is a risk that same time markedly reduce its guid-
the central bank may inadvertently fuel ance for future increases.
progress ahead of the Fed decision but,
even after it, there seems little to cheer
November minutes.
“We expect some qualifiers to be added
testing $50.
The losses came in spite of hopes that future financial volatility as well as the
A U-turn would solidify This move would be wrapped in a
investors, given slowing economic growth to this statement to suggest we are the market was rebalancing following risks to the real economy that follow. the perception that the message that the Fed is now even more
This year has been marked by a US dependent on the incoming economic
and the constant presence of trade wars,”
said Chris Beauchamp, chief market
approaching the end of the rate hike
cycle but that the tightening bias will
agreed output cuts by Opec and its allies.
Sterling managed to inch higher economy continuing on a solid growth
Fed can be deterred by a data to set policy, returning to the play-
analyst at IG. nonetheless remain.” against the soft dollar — but lost ground path, underpinned by a robust labour market volatility eruption book heavily used by the Fed under Ben
Recent data releases in China and the President Donald Trump yesterday against the euro — as the markets kept a market and higher business invest- Bernanke and Janet Yellen.
eurozone have highlighted the darkening renewed his criticism of the Fed, saying it wary eye on Brexit developments. ment. While such a move would be an
outlook for global growth while an was “incredible” that the central bank was Theresa May, the UK prime minister, Progress towards fully meeting the ning, markets have in recent weeks understandable reaction, whether it
inversion across part of the US Treasury considering raising rates this month, said MPs would vote on the Brexit deal in Fed’s dual mandate — full employment repriced a host of risks. calms financial markets is questionable.
yield curve has been viewed by some as a given low inflation and a strong dollar. the third week of January as she fended and a stable inflation rate around 2 per That has produced higher and, at Having distanced himself from the
warning that recession may not be too far The mood in the markets was not off opposition calls to hold the vote cent — has allowed the central bank to times, unsettling volatility. The sharp heavy codependency of markets and
away. helped by the latest US data releases. before Christmas. add three interest rate increases this sell-off has even spread to the once- monetary policy at the outset of his ten-
Bill Diviney, senior economist at ABN The New York Fed’s Empire State Analysts warned, however, that it still year and contract its balance sheet, per- impressively decoupled US markets. ure, Fed chair Jay Powell may now find
Amro, said: “We expect a fall in the ‘dots’ business index tumbled to its lowest level remained extremely unlikely the deal severing with the removal of monetary This rather disconcerting configura- himself having to return to it.
to signal two further rate hikes in 2019 — for 19 months in December while would be approved. Dave Shellock stimulus that started with the halt of its tion of divergent economic perform- Rather than repress volatility and
asset purchase programme. ance and broad-based market instabil- provide a platform for higher economic
The window for doing this without ity is why market opinions now vary a growth, a policy flip-flop could end up
Markets update derailing the economy or profoundly great deal as to what the Fed should do. accentuating future market instability.
destabilising markets was opened wider Some urge policymakers to refrain Should that, in turn, sour the senti-
by the US government’s decision to cut from hiking and also to downplay previ- ment of US households and businesses,
taxes and lift fiscal spending. ously signalled intentions for higher it may deliver the worse type of conver-
US Eurozone Japan UK China Brazil With everything seemingly going rates next year. Their rationale is that gence — a US economy being pulled
Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa their way, Fed officials had felt embold- the US economy faces the risk of a downwards to more sluggish global
Level 2598.19 1355.76 21506.88 6773.24 2597.97 87284.42 ened enough earlier this year to signal weaker international economy spilling rivals.
% change on day -0.07 -1.15 0.62 -1.05 0.16 -0.19 an acceleration in how quickly policy back into the domestic picture.
Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ would be tightened. Others advocate the Fed should stick Mohamed El-Erian is chief economic
Level 97.195 1.134 113.000 1.261 6.901 3.910 Yet something different was happen- to its previously signalled path of inter- adviser to Allianz and author of the book
% change on day -0.255 0.354 -0.366 0.398 0.036 0.435 ing elsewhere in the world. Rather than est rate rises next year. The worry for ‘The Only Game in Town’
Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond
Yield 2.872 0.256 0.031 1.132 3.374 9.661
Basis point change on day -0.540 0.400 0.160 2.700 0.400 -6.900
World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX)
Level 308.47 59.84 50.62 1235.35 14.58 2875.50
% change on day -0.29 -0.68 -1.07 -0.60 -0.68 -0.28
Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon.

Main equity markets

S&P 500 index Eurofirst 300 index FTSE 100 index
2880 1480 7200

2800 1440 7040

2720 1400 6880

2640 1360 6720

| | | | | | | | |
2560 | | | | | | | | | | | | | | | | | | | |
1320 | | | | | | | | | | | | | | | | | | | | 6560 | | | | | | | | | | |

Oct 2018 Dec Oct 2018 Dec Oct 2018 Dec

Biggest movers
% US Eurozone UK
Alexion Pharmaceuticals 3.97 Kerry Grp 1.89 Bhp 2.67
Applied Materials 3.31 Brenntag 1.24 Rio Tinto 2.37
Ups

Stanley Black & Decker 3.28 Reed Elsevier 1.08 Antofagasta 2.31
Leggett & Platt 3.04 Bayer 1.01 Glencore 1.14
Freeport-mcmoran 2.89 Iberdrola 0.97 Smiths 0.87
%
Xerox -5.46 Saipem -6.55 Wood (john) -5.95
Pacific Gas & Electric Co -5.31 Adidas -4.42 Nmc Health -4.96
Downs

Westrock -5.23 Commerzbank -4.19 Gvc Holdings -4.92

Centene -5.21 Inditex -3.87 Next -4.63
Packaging Of America -4.64 Evonik Industries -3.81 Marks And Spencer -4.59
Prices taken at 17:00 GMT Based on the constituents of the FTSE Eurofirst 300 Eurozone
All data provided by Morningstar unless otherwise noted.

Wall Street Eurozone London

Jack in the Box, the burger chain, gained European retailers took a hit yesterday on The decision to scrap plans to combine
after revealing it was exploring strategic concerns of contagion after British online SSE’s retail arm with Npower, the UK
alternatives, including a possible sale of fashion retailer Asos declined as much as retail business of Germany’s Innogy, saw
the company, less than a month after 40 per cent. both energy groups’ share slide with SSE
reporting a fall in full-year sales and Berlin-based online fashion retailer falling 3.2 per cent and Innogy down 0.8
earnings. Zalando fell as much as 16 per cent at one per cent.
The group said yesterday it had held stage, and Swedish fashion retailer H&M “We closely monitored the impact of all
discussions with potential buyers but dropped up to 7 per cent. developments and continually reviewed
stressed there was no guarantee that a Concerns grew over their traditional whether this remained the right deal to
deal would take place. Its shares rose 3.5 bricks-and-mortar stores as well, after do for our customers, our employees and
per cent in early New York trading. data from retail research group our shareholders,” said Alistair Phillips-
Boeing and Embraer announced they Springboard showed that footfall — Davies, SSE chief. “Ultimately, we have
had approved the terms of a joint venture which represents the number of shoppers now concluded that it is not.”
that would give the US aircraft maker visiting stores — was expected to decline Off the back of Asos’ sudden profit
80 per cent control over the Brazilian 4.2 per cent in December compared with warning, both JD Sports and Next were
company’s commercial aircraft and the same month last year. among the FTSE 100’s largest fallers,
services operations for $4.2bn. “Everyone knew bricks-and-mortar dropping 7.1 per cent and 4.6 per cent,
The companies said the long-awaited retail was in trouble,” said investment respectively.
transaction only needed the approval of research group AJ Bell. “This will strike Online retailer Boohoo also felt
the Brazilian government and regulatory fear into other internet-based retailers shockwaves from the news, sliding 13.7
authorities. Boeing rose 2.4 per cent and and more traditional rivals who were per cent. Reflecting gloom in the sector,
Embraer was up 4.9 per cent in early banking on their web-based portals to the FTSE 350 General Retail index ended
trade. FT reporters get them out of trouble.” FT reporters the day 3.5 per cent lower. FT reporters