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World Markets

STOCK MARKETS

Dec 3 prev %chg

S&P 500 2774.81 2760.17 0.53

Nasdaq Composite 7394.49 7330.54 0.87

Dow Jones Ind 25696.55 25538.46 0.62

FTSEurofirst 300 1424.65 1409.60 1.07

Euro Stoxx 50 3218.06 3173.13 1.42

FTSE 100 7062.41 6980.24 1.18

FTSE All-Share 3863.09 3823.34 1.04

CAC 40 5053.98 5003.91 1.00

Xetra Dax 11465.46 11257.24 1.85

Nikkei 22574.76 22351.06 1.00

Hang Seng 27182.04 26506.75 2.55

MSCI World $ 2041.36 2034.89 0.32

MSCI EM $ 994.72 998.05 -0.33

MSCI ACWI $ 490.86 489.66 0.24

CURRENCIES

Dec 3 prev

$ per € 1.135 1.132

$ per £ 1.274 1.276

£ per € 0.891 0.887

¥ per $ 113.605 113.550

¥ per £ 144.687 144.879

€ index

SFr per € 1.133 1.132

Dec 3 prev

€ per $ 0.881 0.883

£ per $ 0.785 0.784

€ per £ 1.122 1.127

¥ per € 128.914 128.567

£ index 77.573 77.396

$ index

SFr per £ 1.271 1.275

COMMODITIES

Dec 3 prev %chg

Oil WTI $ 52.48 50.93 3.04

Oil Brent $ 61.02 59.46 2.62

Gold $ 1217.55 1226.25 -0.71

INTEREST RATES

price yield chg

US Gov 10 yr 93.28 3.00 -0.02

UK Gov 10 yr 125.83 1.17 -0.05

Ger Gov 10 yr 142.35 0.31 -0.01

Jpn Gov 10 yr 118.02 0.08 -0.01

US Gov 30 yr 88.53 3.29 -0.02

Ger Gov 2 yr 101.70 -0.61 -0.01

price prev chg

Fed Funds Eff 2.20 2.19 0.01

US 3m Bills 2.37 2.37 0.00

Euro Libor 3m -0.36 -0.36 0.00

UK 3m 0.89 0.90 0.00Prices are latest for edition Data provided by Morningstar

JIM PICKARD AND GILL PLIMMER

Crossrail will demand “hundreds ofmillions” of pounds from the govern-ment in its third bailout of the year,according to people familiar with thecrisisat theLondonrailproject.

The news came as controversy mountedover whether Sadiq Khan, the mayor ofLondon, misled the public over theproject’sdelaysandcostoverruns.

Ministers were furious in August afterCrossrail management admitted thatthe project’s completion would bedelayedbyayeartotheautumnof2019.

Mr Khan told the National AuditOffice last month that the project wouldrequire further cash — despite havingalready received an injection of £590min July and a further £350m loan inOctober—whichincreasedthetotalcostof theschemeto£15.8bn.

Terry Morgan, the Crossrail chairmanwho is expecting to be sacked this weekfrom his post and also as chairman ofthe HS2 rail project, confirmed anotherrequest was imminent. “I’m expectinganother announcement of additionalfunding. I don’t know how much,” hetoldtheBBC.

The precise amount of extra fundinghasnotbeendecidedandwilldependona KPMG report into governance atCrossrail, which is close to completion.However, the request will amount tohundreds of millions of pounds, accord-ing to several people close to the project.An announcement is expected in weeks.

The fresh demand for money comesas Transport for London, which ownsCrossrail and is chaired by Mr Khan, isstruggling with a growing financial crisiscaused partly by disappointing passen-ger numbers. The one-year delay to

Crossrail will alone cost TfL an esti-mated £600m, according to ratingagencyMoody’s.

Sir Terry, who took up his job at HS2only in July, hit back at Mr Khan, accus-ing him of misleading Londoners. Themayor has told the London Assemblythat he only found out two days before apublic announcement on August 31 thatthe line would not be ready for theQueentoopenonDecember9.

But Sir Terry told Radio 4’s Today pro-gramme: “I advised, formally advised,the mayor in a meeting on July 26 thatwe’d come to the conclusion that finish-ing the work in 2018 was no longer pos-siblenor feasible.”

A mayoral spokesman said Mr Khanhad discussed rising cost and schedulepressures with Crossrail over the sum-mer but did not know for certain aboutthedelayuntil lateAugust.

Crossrail to seek ‘hundreds of millions’more in £15.8bn project’s third bailout

Theresa May’s hopes of wooingBrexiters with tougher border controlsahead of the December 11 Commonsvote on her EU exit deal have beendealt a blow. Sajid Javid, the homesecretary, admits the government willnot unveil details of its post-Brexitimmigration system in time for thevote. The paper has been delayed fora year as ministers cannot agree onhow the regime should operate.Analysis i PAGE 3

Robert Shrimsley i PAGE 13

Immigration plans remainhidden before Brexit vote

TUESDAY 4 DECEMBER 2018

Briefing

i GSK dented by $5.1bn US biotech dealThe UK drugmaker’s shares have dropped after itunveiled the first big buy under new chief EmmaWalmsley, a $5.1bn swoop for oncology-focusedTesaro.— PAGE 15; OLIVIA ROSSANESE, PAGE 13; LEX, PAGE 14

i Qatar quits Opec after neighbours’ rowThe emirate has said it plans to quit Opec from nextyear as relations with its Arab neighbours sour,ending its near six-decade membership of the oilcartel.— PAGE 6; LEX, PAGE 14; OPEC MEETING, PAGE 21

i Lords condemn ‘aggressive’ HMRCA committee including former chancellors AlistairDarling and Norman Lamont has said the agency’s“aggressive” tax avoidance push is disproportionateand risks undermining the rule of law.— PAGE 2

i MI6 chief urges decision time on HuaweiAlex Younger has said “somedecisions” will need to be takenon the Chinese telecoms groupafter the US, New Zealand andAustralia banned it from future5G networks.— PAGE 2

i Housebuilders back new selling portalBarratt Developments, Bovis, Persimmon andRedrow have backed Rummage4Property, whichlaunches next year to challenge dominant websitesRightmove and Zoopla.— PAGE 21; LEX, PAGE 14

i Parties push Paris to scrap fuel tax riseFrench opposition leaders have demanded thescrapping of a planned rise in fuel taxes after a dayof talks with premier Edouard Philippe aimed atdefusing protests.— PAGE 4; EDITORIAL COMMENT, PAGE 12

i Ted Baker hit after claims against chiefShares in the fashion brand have fallen 15 per centas the company said it would appoint an externalinvestigator to explore claims of inappropriatebehaviour by chief executive Ray Kelvin.— PAGE 15

Datawatch

UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00

© THE FINANCIAL TIMES LTD 2018No: 39,955 ★

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WORLD BUSINESS NEWSPAPER

Newspaper of the Year

The truce in theUS-China tradewar agreed at theG20 meeting inBuenos Aires atthe weekendcame after realtrade growthhad slowed thisyear as tensionswere intensifying

HENRY SANDERSON, DAVID SHEPPARDAND NEIL HUME

One of the top lieutenants of Glencoreboss Ivan Glasenberg is to depart theminerand commodity traderbytheendof the year amid growing pressure fromregulators over assets he once ran in theDemocraticRepublicofCongo.

The departure of billionaire copperexecutive Aristotelis Mistakidis, whohas worked for Glencore for more thantwo decades, comes as part of a broaderreshuffle at the top of the Switzerland-based trading house as it deals with thefallout of a US Department of Justiceprobe of its activities in the DRC, Vene-zuelaandNigeria.

Mr Mistakidis is one of Glencore’s big-gest shareholders, with a £1.4bn stake,and one of the most powerful figures in

global copper. He joined Glencore whenit was known as Marc Rich & Co in 1993,moving to manage copper trading andmining after Mr Glasenberg becamechiefexecutive in2002.

His departure comes despite thechief’s reputationforshieldingthe innercore of key executives at the company,who all report to Mr Glasenberg daily.They include Daniel Mate, Tor Petersonand Alex Beard, the respective heads ofzinc,coalandoil trading.

Glencore said the retirement hadbeen discussed for some time but theannouncement that Mr Mistakidis, whois 56, would be leaving in less than amonth will raise questions for investorsalready shaken by several regulatoryprobes. One mining analyst who hasknown Mr Mistakidis for years said the

executive seemed to be “the sacrificiallamb”. He added the departureappeared to be “connected with the[investigations] and trying to draw alineunderthepast.”

MrMistakidisdeclinedtocomment.He built the copper business into one

of Glencore’s most profitable divisionsand expanded Glencore’s DRC businesswith the help of the company’s formerbusiness partner, Dan Gertler, an Israelihit with sanctions by Washington lastyear. The US Treasury said Mr Gertlerhad amassed his fortune through hun-dreds of millions of dollars’ worth of“opaque and corrupt mining and oildeals” inthecountry.

Glencore’s market value fell by £5bnwhen the DoJ probe was revealed in July.Its shares have dropped 22 per cent this

year, but they closed up 3.7 per cent yes-terdayamidacommoditiesrally.

Mr Mistakidis, known in the industryas “Telis”, was previously on the boardof Glencore’s DRC subsidiary KatangaMining but stepped down last year afterCanada’s Ontario Securities Commis-sion opened a probe into accountingirregularitiesat thecompany.

“He’s decided to retire and pass on thebaton to the next generation,”MrGlasenbergsaid.Thechief,who is61,has long said he plans to retire at around65 and has a shortlist of four candidatesto succeed him. The ideal pick, he hasadded, would look much like himselfbut be around 45, ruling out currentexecutives. The shortlist does notinclude any women but Mr Glasenberghasnotruledthatout.

Glasenberg ally to leave Glencoreas scrutiny rises over Congo assets3 Mistakidis exit by year-end 3 Executive built copper unit 3 Investors rattled by inquiries

ReboundMarket reliefat G20 truceWall Street joined a global stock rallyyesterday as investors breathed a sigh ofrelief that Washington and Beijing hadrefrained from escalating their tradebattleatG20talksovertheweekend.

There were early rises for the S&P andNasdaq Composite after gains in Europeand Asia. China’s CSI 300 index ofleading stocks closed up 2.8 per cent.Technology and car stocks were amongthe leaders, with US chipmaker AMD up10.6 per cent and Germany's Daimler up4.5 per cent. France’s LVMH rose 5 percentas luxurygoodsalsobenefited.Mnuchin warns & Global Insight page 6Editorial Comment page 12Larry Summers page 13Lex page 14Chip battle page 17

Bloomberg; Getty Images

AristotelisMistakidishas a stake inGlencore worth£1.4bn and isone of the mostpowerful figuresin global copper

B 2.8%

B 10.6%

B 4.5%

B 5%

Heavier handBusiness frets over Beijing’s risingpressure on Hong Kong — PAGE 11

Brexit effectA vote that will shape British politicsfor years — ROBERT SHRIMSLEY, PAGE 13

FT Seasonal AppealHelping low income women inAfrica build homes — PAGE 18

DECEMBER 4 2018 Section:FrontBack Time: 3/12/2018 - 20:15 User: simon.roberts Page Name: 1FRONT, Part,Page,Edition: LON, 1, 1

2 ★ FINANCIAL TIMES Tuesday 4 December 2018

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NATIONAL

EMMA AGYEMANG, MADISON MARRIAGEAND CHRIS GILES

HM Revenue & Customs’ “aggressive”attitude to curbing tax avoidance is dis-proportionate and undermines the ruleof law,saypeers inadamningreport.

The Lords economic affairs commit-tee, which includes two former chancel-lors, Alistair Darling and Norman Lam-

ont, said HMRC was “not sufficientlyaccountable” for its treatment of tax-payers and recommended the govern-ment undertake a full review of the taxauthority’spowers.

The report, published yesterday, washighly critical of Mel Stride, the Treas-ury minister responsible for HMRC,who refused to attend the committee’sevidence sessions. Malcolm Forsyth,chairman of the committee, said MrStride’s actions “did not make us feelthat the fair treatment of taxpayers wasbeing considered properly by the gov-ernment. We concluded that the scru-

tiny of HMRC was not up to scratch.”The report said that HMRC was now

being asked to clamp down harder ontax avoidance and evasion with fewerstaff and had been given extensive newpowers, creating a culture of “harsh-ness”, which did not consider whethertaxpayers were treated fairly. It urgedministers to withdraw plans to furtherextend HMRC powers, which are con-tainedintheforthcomingFinanceBill.

“When we started getting evidencethat this was hitting health workers andsocial workers, we were shocked,” LordForsythadded.

The Treasury stressed that it hadtaken “unprecedented” action to crackdown on tax evasion and avoidance. Aspokesperson said: “Parliament hasgiven HMRC powers it needs to tacklebusinesses and individuals who do notpay their fair share, and it uses themresponsibly and subject to appropriatechecksandbalances.”

The most contentious issue examinedby the committee was a tax, called theloan charge, affecting people who used“disguised remuneration” schemes,where an employee is paid indirectlythrough a third-party company. Rather

than receiving a salary, which wouldattract income tax and NICs, employeesare loaned money by the trust on termsthatmeanit isunlikelytoberepaid.

Many employees paid through theschemes believed they were approvedby HMRC but have received unexpect-edly largebills for taxavoidance.

The committee recommended HMRCurgently review all loan charge caseswhere individuals were unable to paytheir tax bill. It also called on the gov-ernment to change the law to excludeloans where taxpayers had already dis-closedtheirparticipationtoHMRC.

Parliamentary inquiry

HMRC treats taxpayers unfairly, say peersLords report condemnsrevenue authority andurges review of its powers

DAVID BOND — ST ANDREWS

MI6 chief Alex Younger signalled secu-rity concerns over Chinese telecomsgroup Huawei in a rare speech thatunderlined the threat faced by Britainand its allies from Beijing’s growingdominanceofemergingtechnologies.

Speaking to an audience of students atthe University of St Andrews, where hestudied three decades ago, the head ofthe Secret Intelligence Service said theUK had to make “some decisions” onHuawei after close intelligence partnerssuch as the US, New Zealand and Aus-tralia banned the company from future5Gmobilenetworks.

“We need to decide the extent towhich we are going to be comfortablewith Chinese ownership of these tech-nologies and these platforms in an envi-ronment where some of our allies havetakenaverydefiniteposition,”hesaid.

The UK and Germany are growingincreasingly wary of Huawei after fur-ther pressure from the US. Huaweiequipment used by British telecomsoperators is tested by a special labora-tory overseen by intelligence chiefsfrom the National Cyber Security Cen-tre,partofdigital spyingagencyGCHQ.

However, Mr Younger said the onsetof 5G would make it harder to monitorHuawei kit, a threat made even morechallenging by China’s “legal and ethicalframework” and the rapid shift in globalpower,politicsandmoneytoAsia.

“In China they have a different legaland ethical framework,” he said. “Theyare able to use and manipulate data setsonascalewecanonlydreamof.”

Mr Younger said the growing threatfrom cyber attacks launched by hostilestates such as China, Russia and NorthKorea, was changing the way MI6, anorganisation built on old-fashionedhuman spycraft, was operating. “We areshifting our focus to the nexus betweenhumansandtechnology,”hesaid.

In only his second speech sincebecoming chief of MI6 in 2014, MrYoungertackledarangeof internationalsecurity issues, including Russia’s in-creasingly malign activities and themurder of Saudi Arabian journalist anddissident JamalKhashoggi.

He said Russia was in a “perpetualstate of confrontation” with the UK andwarned the Kremlin not to underesti-mate Britain’s determination to fightattempts tosubvert itswayof life.

“The conclusion they have arrived atis they should apply their capabilitiesacross the whole spectrum to . . . ourinstitutionsandourpartnerships.

“Our intention is for the Russian stateto conclude that whatever benefits itthinks it is accruing from this activity,theyarenotworththerisk,”hesaid.

Following the nerve agent attack onformer MI6 informant Sergei Skripal inSalisbury in March, the UK has led awestern push to resist Russian aggres-sion and cyber attacks, using diplomaticexpulsions, economic sanctions andpublic exposure of Moscow’s militaryintelligenceagency, theGRU.

Mr Younger did not confirm if MrSkripal, a former GRU colonel whocame to Britain as part of a spy swapbetween the US and Russia in 2010, hadbeen an MI6 agent. But he said the UKwould not repeat the mistake of assum-ing Russia would keep its word on espio-nageexchanges.FT Big Read page 11

Intelligence service

MI6 chiefwarns ofsecurity fearsover Huawei

SYLVIA PFEIFER

Airbus has hit out at the EU followingBritain’s decision to quit the militaryside of the bloc’s Galileo satellite navi-gation system after being frozen out byBrussels, warning it will underminesecurityambitionsacrossthebloc.

Tom Enders, Airbus chief executive,said the move was a “serious blow to theEU’s common security and defenceambition”.

“Don’t those talking about a ‘Euro-pean army’ know that the UK is one ofonly two serious military powers inEurope?” Mr Enders wrote in an AirbusTwitterpost.

Britain, along with France, has beenone of the two most active defence pow-ers in Europe. France and Germanyrecently called for the creation of aEuropean army in a step towards closerdefence co-operation between EUmemberstates.

Mr Enders’ criticism was echoed byCarl Bildt, former prime minister ofSweden and currently co-chair of the

European Council on Foreign Relations.Mr Bildt attacked the move to excludethe UK from the “security part of theGalileo satellite system” and thus forc-ing it out, as “strategic folly of the firstorder”.Asolution“mustbepossible,”hesaidonTwitter.

The comments came after the UKannounced on Friday it would walkaway from the military aspects of the€10bn programme over fears it will notbe able to influence its developmentafter Brexit. Brussels has consistentlyargued that, under EU rules, non-mem-ber states cannot be involved in thedevelopment of Galileo’s secure publicregulated service, an encrypted militarygradesignal.

The UK has said it will pursue build-ing its own secure global satellite navi-gation system instead, although con-cerns remain over how realistic that is.The government has pledged £92mtowards a study on a domestic system,but developing a fully fledged alterna-tive could cost as much as £5bn. The UKhascommitted€1.4bntoGalileotodate.

Satellite navigation

Airbus head laments UK’smilitary exit from Galileo

HELEN WARRELL

A private prison taken back understate control during an emergency thissummerwasan“exceptionallyviolent”dystopia in which prisoners saidinmates high on drugs wanderedaround like zombies in “a war zone”,inspectors found.

HMP Birmingham, which was run bythe security contractor G4S, had beenstruggling to maintain order for sometime, but an unannounced visit by theprisons watchdog in July and Augustfound conditions so bad that inspectorstriggered an urgent notification to theMinistry of Justice. Ministers immedi-ately imposed a new regime under pub-licmanagement.

A report on the inspection, publishedtoday, describes an atmosphere of chaosin which inmates flouted rules withoutchallenge. Staff were “anxious and fear-ful” as they went about their duties,while frightened, vulnerable prisoners“self-isolated” in lockedcells.

Peter Clarke, chief inspector of pris-

ons, said that although managers at Bir-mingham prison had sought to improveconditions following a riot in 2016, hisinspection two years later found the jailplungedintoevengreaterdisorder.

“Far from recovering, the prison haddeteriorated dramatically and was in anappalling state,” he said. “Against allfour of our healthy prison tests — safety,respect,purposefulactivityandrehabil-itation and release planning — weassessed outcomes as poor, our lowestassessment. This is only the second timewehavemadesuchjudgments.”

The report found prisoners openlyusing and trafficking drugs, while somestaff “were ambivalent and accepting ofsuch behaviour, and failed to respond tothis overt drug misuse”. A prisonerdescribedK-wingas“awarzone, inmateswalking around like zombies, high onspice[apsychoactivesubstance].”

G4S said the wellbeing and safety ofprisoners and prison staff was its “keypriority” and it would continue to workwith the Ministry of Justice to “urgentlyaddress” theproblemsat the jail.

Prison inspection

Birmingham jail ‘exceptionallyviolent’, inspectors find

The remains of a medieval Londonerstill clad in his leather boots havebeen uncovered by archaeologists inthe mud of the Thames during workon the capital’s new super sewer.

The skeleton was unearthed withits knee-high boots well preserved bythe river’s watery silt. While detailedinvestigations have yet to be carriedout, the unusual footwear suggestedthe man lived in the late 15th or 16thcentury and was a sailor, fishermanor river worker.

He was found face down with onearm above his head, suggesting he fellor was drowned and his body wasquickly covered by tidal silt. The findwas made near Bermondsey, at thesite of a vertical shaft being sunkahead of boring work for the Thamestideway tunnel. James Pickford

Medieval findThames yieldsbody in boots

DAVID BONDSECURITY AND DEFENCE EDITOR

Automattic, the US technology groupthat owns WordPress, the web designgroup, and an academic research siteare at the centre of a fight with the UKgovernment over what officials say is arefusal todeleteviolent Islamistvideos.

Jihadology.net and Aaron Zelin, itsfounder, contend the site is a vital portalthat provides a valuable service for aca-demics, policymakers and journalistsresearchingIslamistextremism.

However, UK security officials say itcould be used as a platform for extrem-ists to access videos and messages fromoutlawed terror groups such as Isis andal-Qaeda. They want Mr Zelin, an ana-lyst in Washington, and Automattic,which hosts the site via WordPress, toremove or password protect some of themoreviolentvideos.

The stand-off between the Silicon Val-ley company, Mr Zelin and the UKauthorities highlights the struggle

between western governments and UStech groups to reduce the impact andspread of extremist content online andthe dilemma governments face in draw-ing the line between freedom of expres-sionandmattersofnationalsecurity.

Last month the parliamentary intelli-gence and security committee pub-lished a report urging ministers to putmore pressure on businesses to pulladvertising from platforms that fail totake down illegal and inappropriatecontent. Within the report on 2017 ter-ror attacks in London and Manchesterwas a reference to an unnamed websitethat “hosts multiple videos . . . featur-ing violent and disturbing images” thathad refused “multiple requests from theUK and European partners to removethevideos”.

The committee and Home Office dec-lined to comment on the names of theentities redacted from the report butofficials confirmed the example citedinvolvedAutomatticandJihadology.

“It is incredibly difficult,” said PeterNeumann, professor of security studiesat King’s College London. “The onlinenature of this makes it ubiquitous. WhatAaron does is totally legitimate, but it’sbeing used by other people for a differ-entpurpose.”

MrZelinsaidhissitewasfor“academ-ic knowledge” and rejected suggestionsit was used by terrorists. “So many use itto understand what’s going on,” he said.“It’sused insomanypositiveways.”

He acknowledged he had receivedmultiple requests to shut the site fromthe UK in the past two years. The site,which he said was a personal project nottied to his work at the Washington Ins-titute for Near East Policy, a think-tank,described itself as a “clearing house forjihadiprimarysourcematerial”.

Robert Satloff, executive director ofthe institute, said: “Through his workwith the institute, Dr Zelin contributesenormously to scholarly inquiry as apathtodefeatingradicalextremism.Hiswebsite, Jihadology, was a private

project he began before joining the insti-tute and it remains his sole responsibil-ity as stated on the website: ‘Jihadologyis a personal project of Aaron Y Zelinand is not associated with the Washing-tonInstitute forNearEastPolicy’.”

A search of the site reveals posts andvideos from militant groups such as al-Qaeda, Isis and al-Shabaab, which areaccessible. Some of the more graphicvideos show militants apparently killingprisonersorrival fighters.

AlthoughUKsecurityofficialsandtheHome Office say many of the big tech-nology groups have been more respon-sive to requests to take down materialsince last year’s terror attacks, frustra-tion remains with some sites and plat-formsthatrefusetoco-operate.

“It is reckless to publish terrorist pro-paganda online without safeguards tostop those vulnerable to radicalisationfrom seeing it,” the government said.“Weaccept therewillbe limited journal-istic and academic justifications forviewing terrorist content, but we expecttechnology companies to remove suchcontent where it exists on their plat-formsforall tosee.”

A counter terror bill being consideredby parliament will make it an offence tostream or view online information

likely to be useful to a terrorist. At pre-sent, an offence is committed only ifmaterial is downloaded. Civil libertiesgroups say the new law risks criminalis-ingacademicsandjournalists.

Criticism of Automattic and Word-Press is not new. In March 2017, justafter the Westminster Bridge attack inwhich five people were killed, AmberRudd, then home secretary, identifiedWordPress.com as one of the smallertech platforms terrorists were using tospreadpropaganda.

Automattic, WordPress’s parent, ref-used to be drawn on whether it hadreceived multiple requests to take downvideos on the Jihadology site. It said:“We look closely at the context to deter-mine whether certain content is beingpublished for the purposes of informingor educating the public. We do not toler-ate terrorist activity or incitement ofviolenceonourplatform.”

Company data for the first half of thisyear showed it received 16 requestsfrom the UK to take down sites or con-tent it hosts which resulted in six beingactedupon.MrZelinsaidhewasconsid-ering password protecting some of themore graphic content, adding: “Therewere jihadis before I set up my websiteandtherewillbe jihadisafterwards.”

Freedom of speech. National security

Silicon Valley resists pressure to pull extremist content

Researchers’ refusal to remove

violent Islamist videos from site

has fuelled push for tighter laws

Flowers at St Ann’s Square after theManchester Arena attack last year

Clockwise from left: the skeletonon the Tideway site at ChambersWharf; a close-up of the boots;osteologist Niamh Carty examinesthe man’s skull — Mola Headland Infrastructure

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World Markets

STOCK MARKETS

Mar 30 prev %chg

S&P 500 2365.93 2361.13 0.20


Dow Jones Ind 20703.38 20659.32 0.21

FTSEuro�rst 300 1500.72 1493.75 0.47

Euro Stoxx 50 3481.67 3475.27 0.18

FTSE 100 7369.52 7373.72 -0.06

FTSE All-Share 4011.01 4011.80 -0.02

CAC 40 5089.64 5069.04 0.41

Xetra Dax 12256.43 12203.00 0.44

Nikkei 19063.22 19217.48 -0.80

Hang Seng 24301.09 24392.05 -0.37

FTSE All World $ 297.99 297.73 0.09

CURRENCIES

Mar 30 prev

$ per € 1.074 1.075

$ per £ 1.249 1.241

£ per € 0.859 0.866

¥ per $ 111.295 111.035

¥ per £ 139.035 137.822

€ index 89.046 89.372

SFr per € 1.069 1.072

Mar 30 prev

€ per $ 0.932 0.930

£ per $ 0.801 0.806

€ per £ 1.164 1.155

¥ per € 119.476 119.363

£ index 76.705 76.951

$ index 104.636 103.930

SFr per £ 1.244 1.238COMMODITIES

Mar 30 prev %chg

Oil WTI $ 50.22 49.51 1.43

Oil Brent $ 52.98 52.54 0.84

Gold $ 1248.80 1251.10 -0.18

INTEREST RATES

price yield chg

US Gov 10 yr 98.87 2.38 0.00

UK Gov 10 yr 100.46 1.21 -0.03

Ger Gov 10 yr 98.68 0.39 -0.01

Jpn Gov 10 yr 100.45 0.06 0.00

US Gov 30 yr 100.14 2.99 0.01

Ger Gov 2 yr 102.58 -0.75 0.00

price prev chg

Fed Funds E� 0.66 0.66 0.00

US 3m Bills 0.78 0.78 0.00

Euro Libor 3m -0.36 -0.36 0.00


LAURA NOONAN — DUBLINJENNIFER THOMPSON — LONDON

AboastfulWhatsAppmessagehas costa London investment banker his joband a £37,000 fine in the first case ofregulators cracking down on commu-nications over Facebook’s popularchatapp.

The fine by the Financial ConductAuthority highlights the increasingproblem new media pose for companiesthat need to monitor and archive theirstaff’scommunication.

Several large investment banks havebanned employees from sending clientinformation over messaging servicesincluding WhatsApp, which uses anencryption system that cannot beaccessed without permission from theuser. Deutsche Bank last year bannedWhatsApp from work-issued Black-

Berrys after discussions with regulators.Christopher Niehaus, a former Jeffer-

ies banker, passed confidential clientinformation to a “personal acquaint-ance and a friend” using WhatsApp,according to the FCA. The regulator saidMr Niehaus had turned over his devicetohisemployervoluntarily.

The FCA said Mr Niehaus had sharedconfidential informationonthemessag-ing system “on a number of occasions”lastyearto“impress”people.

Several banks have banned the use ofnew media from work-issued devices,but the situation has become trickier asbanks move towards a “bring your owndevice” policy. Goldman Sachs hasclamped down on its staff’s phone billsas iPhone-loving staff spurn their work-issuedBlackBerrys.

Bankers at two institutions said staffare typically trained in how to use new

media at work, but banks are unable toban people from installing apps on theirprivatephones.

Andrew Bodnar, a barrister at MatrixChambers, saidthecaseset“aprecedentin that it shows the FCA sees these mes-saging apps as the same as everythingelse”.

Information shared by Mr Niehausincluded the identity and details of aclient and information about a rival ofJefferies. In one instance the bankerboasted how he might be able to pay offhismortgage ifadealwassuccessful.

Mr Niehaus was suspended from Jef-feries and resigned before the comple-tionofadisciplinaryprocess.

Jefferies declined to comment whileFacebook did not respond to a requestforcomment.Additional reportingbyChloeCornishLombard page 20

Citywatchdog sends a clearmessage asbanker loses joboverWhatsAppboast

Congressional Republicans seeking toavert a US government shutdown afterApril 28 have resisted Donald Trump’sattempt to tack funds to pay for a wallon the US-Mexico border on tostopgap spending plans. They fearthat his planned $33bn increase indefence and border spending couldforce a federal shutdown for the firsttime since 2013, as Democrats refuseto accept the proposals.US budget Q&A andTrump attack over health bill i PAGE 8

Shutdown risk as borderwall bid goes over the top

FRIDAY 31 MARCH 2017

Briefing

iUSbargain-hunters fuel EuropeM&AEurope has become the big target for cross-borderdealmaking, as US companies ride a Trump-fuelledequity market rally to hunt for bargains across theAtlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

iReport outlines longerNHSwaiting timesA report on how the health service can survivemore austerity has said patients will wait longer fornon-urgent operations and for A&E treatment whilesome surgical procedures will be scrapped.— PAGE 4

iEmerging nations in record debt salesDeveloping countries have sold record levels ofgovernment debt in the first quarter of this year,taking advantage of a surge in optimism towardemerging markets as trade booms.— PAGE 15

i London tower plans break recordsA survey has revealed that arecord 455 tall buildings areplanned or under constructionin London. Work began onalmost one tower a weekduring 2016.— PAGE 4

iTillerson fails to ease Turkey tensionsThe US secretary of state has failed to reconciletensions after talks in Ankara with President RecepTayyip Erdogan on issues including Syria and theextradition of cleric Fethullah Gulen.— PAGE 9

iToshiba investors doubt revival planIn a stormy three-hour meeting, investors accusedmanagers o�aving an entrenched secrecy cultureand cast doubt on a revival plan after Westinghousefiled for Chapter 11 bankruptcy protection.— PAGE 16

iHSBCwoos transgender customersThe bank has unveiled a range of gender-neutraltitles such as “Mx”, in addition to Mr, Mrs, Miss orMs, in a move to embrace diversity and cater to theneeds of transgender customers.— PAGE 20

Datawatch



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Recent attacks —notably the 2011massacre byAnders Breivik inNorway, theattacks in Parisand Nice, and theBrussels suicidebombings — havebucked the trendof generally lowfatalities fromterror incidents inwestern Europe

Sources: Jane’s Terrorism and Insurgency Centre

Terror attacks in western Europe

Highlighted attack Others

NorwayParis Nice

Brussels

A Five Star plan?Italy’s populists are trying to woothe poor — BIG READ, PAGE 11

WORLDBUSINESSNEWSPAPER

Trump vs the ValleyTech titans need to minimisepolitical risk — GILLIAN TETT, PAGE 13

Dear Don...May’s first stab at the break-upletter — ROBERT SHRIMSLEY, PAGE 12

Lloyd’s of London chose Brus-sels over “five or six” othercities in its decision to set up anEU base to help deal with the expected loss of passportingrightsafterBrexit.

John Nelson, chairman of thecenturies-old insurance mar-ket, said he expected other

insurers to follow. Most of thebusiness written in Brusselswill be reinsured back to thesyndicates at its City of Londonheadquarters,picturedabove.

The Belgian capital had notbeen seen as the first choice forLondon’s specialist insurancegroups after the UK leaves the

EU, with Dublin and Luxem-bourg thought to be more likelyhomes for the industry. ButMr Nelson said the city won onits transport links, talent pooland “extremely good regula-toryreputation”.Lex page 14Insurers set to follow page 18

Lloyd’s of Brussels Insurancemarketto tapnew talent poolwithEUbase

AFP

JAMES BLITZ — WHITEHALL EDITOR

A computer system acquired to collectduties and clear imports into the UKmay not be able to handle the hugesurge inworkloadexpectedonceBritainleaves the EU, customs authorities haveadmittedtoMPs.

HM Revenue & Customs told a parlia-mentary inquiry that the new systemneeded urgent action to be ready byMarch 2019, when Brexit is due to becompleted, and the chair of the probesaid confidence it would be operationalintime“hascollapsed”.

Setting up a digital customs systemhas been at the heart of Whitehall’sBrexit planning because of the fivefoldincrease in declarations expected atBritishportswhentheUKleavestheEU.

About 53 per cent of British importscome from the EU, and do not requirechecks because they arrive through thesingle market and customs union. ButTheresa May announced in January thatBrexit would include departure fromboth trading blocs. HMRC handles 60mdeclarations a year but, once outside thecustoms union, the number is expectedtohit300m.

The revelations about the system,called Customs Declaration Service, arelikely to throw a sharper spotlight onwhether Whitehall can implement ahost of regulatory regimes — in areasranging from customs and immigrationto agriculture and fisheries — by thetimeBritain leavestheEU.

Problems with CDS and other projectsessential toBrexit could force London to

adjust its negotiation position with theEU, a Whitehall official said. “If runningour own customs system is provingmuch harder than we anticipated, thatought to have an impact on how wepress forcertainoptions inBrussels.”

In a letter to Andrew Tyrie, chairmanof the Commons treasury select com-mittee, HMRC said the timetable fordelivering CDS was “challenging butachievable”. But, it added, CDS was “acomplex programme” that needed to belinked to dozens of other computer sys-tems to work properly. In November,HMRC assigned a “green traffic light” toCDS, indicating it would be deliveredontime. But last month, it wrote to thecommittee saying the programme hadbeen relegated to “amber/red,” whichmeans there are “major risks or issuesapparent inanumbero£eyareas”.

HMRC said last night: “[CDS] is ontrack to be delivered by January 2019,and it will be able to support frictionlessinternational trade once the UK leavesthe EU . . . Internal ratings are designedto make sure that each project gets thefocus and resource it requires for suc-cessfuldelivery.”

HMRC’s letters to the select commit-tee, which will be published today, pro-vide no explanation for the ratingchange, but some MPs believe it wascaused by Mrs May’s unexpected deci-sionto leavetheEUcustomsunion.Timetable & Great Repeal Bill page 2Scheme to import EU laws page 3Editorial Comment & Notebook page 12Philip Stephens & Chris Giles page 13JPMorgan eye options page 18

HMRCwarnscustoms risksbeing swampedbyBrexit surge3Confidence in IT plans ‘has collapsed’3Fivefold rise in declarations expected

World Markets

STOCK MARKETS

Mar 31 prev %chg

S&P 500 2367.10 2368.06 -0.04


Dow Jones Ind 20689.64 20728.49 -0.19

FTSEuro�rst 300 1503.03 1500.72 0.15

Euro Stoxx 50 3495.59 3481.58 0.40

FTSE 100 7322.92 7369.52 -0.63

FTSE All-Share 3990.00 4011.01 -0.52

CAC 40 5122.51 5089.64 0.65

Xetra Dax 12312.87 12256.43 0.46

Nikkei 18909.26 19063.22 -0.81

Hang Seng 24111.59 24301.09 -0.78

FTSE All World $ 297.38 298.11 -0.24

CURRENCIES

Mar 31 prev

$ per € 1.070 1.074

$ per £ 1.251 1.249

£ per € 0.855 0.859

¥ per $ 111.430 111.295

¥ per £ 139.338 139.035

€ index 88.767 89.046

SFr per € 1.071 1.069

Mar 31 prev

€ per $ 0.935 0.932

£ per $ 0.800 0.801

€ per £ 1.169 1.164

¥ per € 119.180 119.476

£ index 77.226 76.705

$ index 104.536 104.636


Mar 31 prev %chg

Oil WTI $ 50.46 50.35 0.22

Oil Brent $ 53.35 53.13 0.41

Gold $ 1244.85 1248.80 -0.32

INTEREST RATES

price yield chg

US Gov 10 yr 98.63 2.41 -0.01

UK Gov 10 yr 100.35 1.22 0.02

Ger Gov 10 yr 99.27 0.33 -0.01

Jpn Gov 10 yr 100.36 0.07 0.00

US Gov 30 yr 99.27 3.04 0.01

Ger Gov 2 yr 102.57 -0.75 0.00

price prev chg

Fed Funds E� 0.66 0.66 0.00

US 3m Bills 0.78 0.78 0.00

Euro Libor 3m -0.36 -0.36 0.00


ALEX BARKER — BRUSSELSGEORGE PARKER — LONDONSTEFAN WAGSTYL — BERLIN

TheEUyesterdaytookatoughopeningstance in Brexit negotiations, rejectingBritain’s plea for early trade talks andexplicitly giving Spain a veto over anyarrangementsthatapplytoGibraltar.

European Council president DonaldTusk’s first draft of the guidelines,which are an important milestone onthe 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.

The decision to add the clause givingSpain the right to veto any EU-UK tradedeals covering Gibraltar could make the300-year territorial dispute betweenMadrid and London an obstacle to

ambitioustradeandairlineaccessdeals.Gibraltar yesterday hit back at the

clause, saying the territory had “shame-fully been singled out for unfavourabletreatment by the council at the behest ofSpain”. Madrid defended the draftclause,pointingoutthat itonlyreflected“thetraditionalSpanishposition”.

Senior EU diplomats noted thatMr Tusk’s text left room for negotiatorsto work with in coming months. Primeminister Theresa May’s allies insistedthat the EU negotiating stance waslargely “constructive”, with one saying itwas “within the parameters of what wewere expecting, perhaps more on theupside”.

British officialsadmitted that theEU’sinsistence on a continuing role for theEuropean Court of Justice in any transi-tiondealcouldbeproblematic.

Brussels sees little room for compro-

mise. If Britain wants to prolong itsstatus within the single market afterBrexit, the guidelines state it wouldrequire “existing regulatory, budgetary,supervisory and enforcement instru-mentsandstructures toapply”.

Mr Tusk wants talks on future tradeto begin only once “sufficient progress”has been made on Britain’s exit bill andcitizen rights, which Whitehall officialsbelieve means simultaneous talks arepossible if certainconditionsaremet.

Boris Johnson, the foreign secretary,reassured European colleagues at aNato summit in Brussels that Mrs Mayhad not intended to “threaten” the EUwhen she linked security co-operationafterBrexitwithatradedeal.Reports & analysis page 3Jonathan Powell, Tim Harford &Man in the News: David Davis page 11Henry Mance page 12

Brussels takes tough stance onBrexitwith Spainhandedveto overGibraltar

About 2.3m people will benefit fromtoday’s increase in the national livingwage to £7.50 per hour. But the risewill pile pressure on English councils,which will have to pay care workers alot more. Some 43 per cent of caresta� — amounting to 341,000 peopleaged 25 and over — earn less than thenew living wage and the increase isexpected to cost councils’ care services£360m in the coming financial year.Analysis i PAGE 4

Living wage rise to pilepressure on care services

SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80





Censors and sensitivityWarning: this article may be upsetting — LIFE & ARTS

HOW DRIVERLESS TECHNOLOGY IS CHANGING AN AMERICAN WAY OF LIFE

THE END OF THE ROAD FT WEEKEND MAGAZINE

Escape the taper trapHow high earners can evade a pension headache — FT MONEY

The lure of the exoticRobin Lane Fox on the flair of foreign flora — HOUSE & HOME

How To Spend It

Chic new lodgings in ScotlandMAGAZINE

Art of persuasionMystery deepensover disputed painting of Jane Austen

Austen’s descendants insist the Rice portrait depicts her as a girl — seemagazine Bridgeman Art Library

RALPH ATKINS — ZURICHDUNCAN ROBINSON — BRUSSELS

Credit Suisse has been targeted bysweeping tax investigations in the UK,France and the Netherlands, settingback Switzerland’s attempts to clean upits imageasataxhaven.

The Swiss bank said yesterday it wasco-operating with authorities after itsoffices inLondon,ParisandAmsterdamwere contacted by local officials“concerningclient taxmatters”.

Dutch authorities said their counter-parts in Germany were also involved,while Australia’s revenue departmentsaid itwas investigatingaSwissbank.

The inquiries threaten to undermineefforts by the country’s banking sectorto overhaul business models and ensurecustomers meet international taxrequirements following a US-led clamp-down on evaders, which resulted inbillionsofdollars infines.

The probes risk sparking an interna-tional dispute after the Swiss attorney-general’s office expressed “astonish-ment” that it had been left out of theactions co-ordinated by Eurojust, theEU’s judicial liaisonbody.

Credit Suisse, whose shares fell 1.2 percent yesterday, identified itself as thesubject ofinvestigations in the Nether-lands, France and the UK. The bank said

it followed “a strategy offull client taxcompliance” but was still trying togather informationabouttheprobes.

HM Revenue & Customs said it hadlaunched a criminal investigation intosuspected tax evasion and money laun-dering by “a global financial institutionand certain ofits employees”. The UKtax authority added: “The internationalreach of this investigation sends a clearmessage that there is no hiding place forthoseseekingtoevadetax.”

Dutch prosecutors, who initiated theaction, said they seized jewellery, paint-ings and gold ingots as part of theirprobe; while French officials said theirinvestigation had revealed “severalthousand” bank accounts opened inSwitzerland and not declared to Frenchtaxauthorities.

The Swiss attorney-general’s officesaid it was “astonished at the way thisoperation has been organised with thedeliberate exclusion of Switzerland”. Itdemanded a written explanation fromDutchauthorities.

In 2014, Credit Suisse pleaded guiltyin the US to an “extensive and wide-ranging conspiracy” to help clientsevadetax. Itagreedtofinesof$2.6bn.Additional reportingbyLauraNoonan inDublin, Caroline Binham and VanessaHoulder in London, andMichael StothardinParis

Credit Suisseengulfed infresh taxprobe3UK, France and Netherlands swoop3Blow for bid to clean up Swiss image

FEBR

UARY

4 2017

THE RISE OF ECO-GLAM

390_Cover_PRESS.indd 1 19/01/2017 13:57

DECEMBER 4 2018 Section:World Time: 3/12/2018 - 19:51 User: david.owen Page Name: UKNEWS1, Part,Page,Edition: LON, 2, 1

Tuesday 4 December 2018 ★ FINANCIAL TIMES 3

NATIONAL

HELEN WARRELL AND GEORGE PARKER

The government will not set out thedetailof itspost-Brexit immigrationsys-tem before MPs vote on Theresa May’sexit deal on December 11, dealing a blowto the prime minister’s hopes of wooingBrexiterswithtougherbordercontrols.

The admission, made yesterday bySajid Javid, home secretary, reflectsdeep cabinet divisions on immigration,with Philip Hammond, the chancellor,leading opposition to Mrs May’s plan fortightcurbsonlow-skilled immigration.

The paper has now been delayed formore than a year as ministers havefailed repeatedly to agree on how theregimeshouldoperate.

The outline of the policy, set out at theConservative party conference, is to endEU migrants having priority over thosefrom further afield, and a focus onattracting only the highly skilled. Thiswould probably be determined byimposing a minimum salary thresholdof£30,000forworkvisas.

The most recent cabinet dispute fol-lows warnings from the chancellor,backed by Greg Clark, business secre-tary, that severe cuts in EU migrationwould damage the economy, especiallyin sectors such as social care and con-struction. There is particular concernabout businesses needing more timeafter the 21-month post-Brexit transi-tionperiodto implementnewrules.

However, the prime minister is keento end almost all low-skilled migrationwhen the transition period ends in

December 2020, and has urged employ-ers to train British workers rather thanrelyingonforeign labour.

Referring to the immigration whitepaper, Mr Javid told the BBC: “It’s veryunlikely to be published before the vote.This is the biggest change in our immi-gration system in over four decades. It’simportant we work on the detail and lis-tentobusinessesandothers.”

He said the system would be “basedon skills, not where people come from”,but refused to go into further detail.Later, in parliament, Mr Javid told MPsBritain was “at its best” when it was“open to talent from across the world”,but still declined to say what had causedthedelay inpublishingthenewpolicy.

Mrs May’s drive to cut net migrationto the “tens of thousands” is a furthersource of tension within cabinet. Effortsto achieve this target became a priorityduring her tenure as home secretary,and she included the pledge as a centraltenetofher2017electionmanifesto.

However, Mr Javid wants Mrs May toabandon the target, and refused to usethe “tens of thousands” formulation,telling the BBC he only wanted to cut netmigrationto“moresustainable levels”.

News of the delay prompted criticismfrom MPs, including Yvette Cooper,chair of the Commons home affairscommittee. Jack Straw, a former Labourhome secretary, said “concealing” plansfor the future immigration system fromparliament ahead of the vote was “quitesimplyunacceptable”.Robert Shrimsley page 13

Javid rules outimmigrationpaper aheadof Brexit voteDelay threatens May’s hopes of wooingLeave camp with tighter border controls

JIM PICKARD, GEORGE PARKERAND JAMES BLITZ

Geoffrey Cox, attorney-general, admit-ted yesterday there were some “unat-tractive, unsatisfying elements” toTheresa May’s Brexit withdrawalagreement even as he urged rebel ToryMPs to back it in a crunch Commons voteonDecember11.

The pro-Brexit cabinet memberacknowledged Eurosceptic Conserva-tive MPs’ concerns about a contentiousarrangement to avoid a hard Irishborder.

Mr Cox insisted he was not trying to“disguise” the fact that there was no uni-lateral right for the UK or the EU to ter-minate the so-called Irish backstop,prompting one backbench Tory MP tocry:“It’sa trap.”

Some Eurosceptic Tories fear thebackstop — by introducing a UK-widecustoms union with the EU — would tieBritaincloselytothebloc inperpetuity.

But in a Commons statement aboutthe government’s legal advice on the

Brexit withdrawal agreement, Mr CoxsaidhedidnotbelievetheUKwouldendup“entrapped” inthebackstop.

He told MPs: “I make no bones aboutit — I would have preferred to have seena unilateral right of termination in thisbackstop . . . But I’m prepared to lendmy support to this agreement because Ido not believe that we’re likely to beentrappedin itpermanently.”

Despite his sometimes theatricalattempts to win over sceptical MPs, MrCoxfacedcriticismfromall sides.

Opposition parties joined together totry to force the governmentto publish all the legaladvice it has received onthe withdrawal agree-ment, including from MrCox, after MPs voted infavourof this lastmonth.

Labour and other partieswrote to John Bercow,

Commons Speaker, urging him tolaunch contempt proceedings after thegovernment insisted on releasing only asummaryof the legaladviceyesterday.

The 52-page document confirmed theUK lacked a unilateral means to escapetheIrishbackstopundertheagreement.

“The agreement does not contain anyprovision on its termination,” it said. “Inthe absence of such a provision, it is notpossible under international law for aparty to withdraw from the agreementunilaterally.”

But the document said Britain couldonly be locked into the backstop with the EU “temporarily”, adding that thetwo sides would use their “best endeav-ours” to conclude an agreement onfuture relations by December 2020, at

which point the arrangement wouldnolongerapply.

Mrs May spent much ofyesterday meeting smallgroups of MPs at the startof her attempt to avert aheavy defeat in the votenextTuesday.

She will open a five-day Commonsdebate on her Brexit deal today, tellingMPs: “The British people want us to geton with a deal that honours the referen-dum and allows us to come togetheragain as a country, whichever way wevoted.”

Many Tory MPs are amazed by MrsMay’s apparent determination to pressahead with the vote, which they believeshe is certain to lose. “She must have aPlan B,” said Anna Soubry, a pro-EUformertrademinister.

Mrs May’s spokesman insisted shehad no intention of postponing the vote,but she is struggling to neutralise Euro-scepticTories’angerat thebackstop.

David Davis, former Brexit secretaryand a leading Eurosceptic, said the sum-mary document of the legal advice wasevenworsethanexpected.

“The backstop customs union isindefinite, the UK would be a rule takerand the European court [of justice] is incharge of our destiny, rather than thesovereign UK parliament,” added MrDavis.

Withdrawal agreement

Attorney-general admits May deal has drawbacks

Remain and Leave campaigners exchange views yesterday at Westminster as MPs were hearing details of the withdrawal agreement — Leon Neal/Getty Images

Geoffrey Cox:tried to winover sceptics

DECEMBER 4 2018 Section:World Time: 3/12/2018 - 19:47 User: david.owen Page Name: UKNEWS2, Part,Page,Edition: LON, 3, 1


INTERNATIONAL

BEN HALL — EUROPE EDITOR

French opposition leaders demandedthe scrapping of a planned increase infuel taxes following a day of talks withEdouard Philippe, the prime minister,intended to defuse protests that eruptedintoviolenceduringtheweekend.

In a sign of the gravity of the challengefacingPresidentEmmanuelMacron,MrPhilippe held separate meetingsyesterday with party leadersahead of an emergency debate in parlia-ment tomorrow and possible conces-

sions to prevent further violence. Withthe exception of the Greens, the opposi-tion leaders called on the prime minis-ter to abandon, at a minimum, plans toraise taxes on petrol by 2.9 cents a litreand diesel 6.5 cents from January. Mem-bers of Mr Macron’s La République enMarche party are expected today to giveMrPhilippethesamemessage.

The action by the gilets jaunes, or yel-low vests, against rising fuel prices hasspiralled into nationwide anti-govern-ment protests that showed no sign ofabating. Students closed 100 highschools yesterday and fuel shortagescaused by depot blockades werereported insomepartsof thecountry.

Marine Le Pen, the far-right leader,said: “Give them right now measures

that can help calm everyone down,because it is the government and thepresident who are in reality responsiblefor thesurge inanger.

Both Ms Le Pen and the far-left LaFrance Insoumise party have called forparliamentary elections as a way out ofthecrisis.

The authorities are braced for thepossibility of further protests in Paristhis weekend. Almost 700 people werearrested across the country during Sat-urday’s violence, 400 of them in thecapital. Protesters built barricades andburnt more than 100 cars and six build-ingsneartheArcdeTriomphe.

Christophe Castaner, interior minis-ter, suggested that the governmentcould declare a state of emergency or

deploytroopstothecapital.ButLaurentNuñez, junior interior minister, saidyesterday that a state of emergency was“notontheagenda”.

The demonstrations started threeweeks ago as a motorists’ movementagainstplans toraise taxesonpetrolanddiesel in January, with blockages of roadjunctions, toll booths, port facilities andfuel depots. Fuel shortages are spread-ing across parts of Brittany, wheredepots in Lorient and Brest are cut off.Total, the energy company, said 11 fueldepots were blocked and 75 service sta-tionswereoutofsupplies.

The gilets jaunes have no leaders orstructure and organise via social media.Benjamin Cauchy, one of the protesters,told Le Monde that a planned meeting

with the prime minister today wouldnot go ahead unless the governmentagreedtoscrapthetaxrises.

Mr Macron has said fuel taxes wouldbe reviewed every three months but hasrefused to abandon the measure, partlyintended to lower consumption andreduce carbon emissions. But the pro-testers’ demands have multiplied. Theynow want lower taxes and better publicservices, particularly in rural and semi-ruralareaswheremanyof themlive.

An opinion poll by Harris Interactivetaken after Saturday’s violence sug-gested the gilets jaunes still enjoyedstrong public backing, with an approvalrating of about 72 per cent, the samelevelasbeforetheclashes.Editorial Comment page12

GUY CHAZAN — BERLINHENRY FOY — MOSCOW

The frontrunners to succeed AngelaMerkel as leader of the German Chris-tian Democrats have questioned theNord Stream 2 gas pipeline project,saying Russia’s recent actions in the SeaofAzovshouldpromptareappraisal.

Nord Stream 2 would allow Russia todouble the amount of natural gas itpumps under the Baltic Sea to Germanyand bypass the traditional route viaUkraine. Opponents fear it wouldincreaseEurope’sdependenceonRussiaforenergy imports.

Germany has been a strong supporterof the project despite intense oppositionfrom countries in central and easternEuropeandtheBalticstates.

But criticism of the pipeline hasincreased in Germany since Russiaseized three Ukrainian ships and theircrews in the Kerch Strait near Crimealast month. Ms Merkel has called onMoscow to hand over the sailors andallow free shipping in the Sea of Azov,demandsRussiahassofarresisted.

Speaking on ARD television on Sun-day, Annegret Kramp-Karrenbauer, theCDU’s secretary-general and Ms Mer-kel’s favoured successor, said Russia’sactions in recent weeks had shown howNord Stream 2 “is not just an economicprojectbutapoliticalone”.

While rejecting a call to pull out of theproject, Ms Kramp-Karrenbauer saidthe EU could apply internal energy mar-ket rules to reduce the amount of gasthat flowsthroughNordStream2.

Yesterday, however, the German gov-ernment reiterated its backing for thepipeline. Heiko Maas, foreign minister,said it was thanks to German pressurethat Russia had promised to continuesending gas through Ukraine even afterNord Stream 2 was built, therebyaddressing one of the main objectionsraisedbycriticsof theproject.

The pipeline would be built with orwithout the involvement of Germancompanies, Mr Maas said. “But [if Ger-many pulled out] there would be no onethere to ensure that gas continues totransit throughUkraine.”

Ms Kramp-Karrenbauer has taken atougher line on Russia than Ms Merkelover the events in Kerch. “My sense isthat as long as Russia’s leaders have theimpression that they can do thisbecause no one’s stopping them, theywill keep trying,” she told a CDUregionalconference inBerlin lastweek.

Friedrich Merz, a lawyer and formerleader of the CDU parliamentary groupwho is vying with Ms Kramp-Karren-bauer for Ms Merkel’s crown, has alsoweighedinontheNordStream2debate,telling the same conference that the“more the conflict in Ukraine escalates,the more the question arises: is it reallyright tobuildthispipeline?”

The German political rhetoric aboutthe pipeline has prompted growing con-cern in the Nord Stream 2 consortium,which ismadeupofFrance’sEngie,Aus-tria’s OMV, Royal Dutch Shell and Ger-many’sWintershallandUniper.

Despite theopposition,NordStream2is going ahead according to plan. Lastweek, Russia’s state-owned Gazprom,which controls the project, said 300kmof pipeline had been built, and work wasongoing inFinnishandGermanwaters.

Emergency debate

Scrap fuel tax rises, urges French oppositionThreat of further ‘giletsjaunes’ protests addsto pressure on Macron

Nord Stream 2

Russian navalaction stirsGermanfears forgas pipeline

IAN MOUNT — MADRID

The success of far-right Vox in winning12 seats in Andalucia’s regional parlia-ment of 109 on Sunday has upended thecountry’salreadyfracturedpolitics.

The centre-left PSOE, party of PedroSánchez,Spain’spremier, is likely to losecontrolof theregionafterholdingpowerthere for36years.

With opposition parties alreadyclaiming the prime minister, who cameto power after a no-confidence vote inhis predecessor, has no mandate to gov-ern, his party’s weakness in Spain’s mostpopulous region has led to fresh calls fornationalelections.

In Andalucia, the centre-right Peo-ple’s party and the new centrist Ciu-dadanos party are set to form a govern-ment with co-operation from Vox. Butthe far-right’s arrival has unsettledmain parties just as it has elsewhere inEurope.

How big a shock is it?

The results are a boost for Vox and dev-astating for the PSOE. The socialistshave run Andalucia since 1982, after thedeath of dictator General Franco. Ana-lysts had expected that the PSOE, whileit would lose seats, would continueto govern with the support of AdelanteAndalucía, the leftwing branch ofPodemos.

Instead, ithad itsworst showing in thearea since Franco. Support for leftwingparties there has fallen from 57 per centto 44 per cent since the 2015 elections,and the PSOE has now relinquishedpower in a second stronghold, havinglostCataloniatonationalists in2010.

“The PSOE had two breadbaskets inSpain,CataloniaandAndalucia.Nowit’slost both,” said Pablo Simón, a professoratMadrid’sCarlos IIIUniversity.

Where has Vox come from?

The party was founded in 2014 afterSpain’s post-2008 crisis, changes to ab-ortion laws, an influx of migrants fromnorthAfricaandthedeclineof thePP.

Vox, like other far-right Europeanparties, positions itself as opposed to the

traditional political class and calls forthe deportation of illegal immigrants. Italso flirts with anti-Muslim rhetoric. Ata post-election rally, Francisco Serrano,lead candidate for Vox in Andalucia,said his party would bring the recon-quista, a term used to describe the Chris-tian conquest of the Muslim kingdomsintheIberianpeninsula.

Despite the economic crisis and pub-lic unease about immigration, the partyfailed to gain traction in previous elec-tions. But since Andalucia’s 2015 polls,there has been a change: the failed bidby Catalonia’s parliament, led by sepa-

ratist parties, to secede in October2017 has roused nationalistsentiment.

“Spain had all the elements the rest ofEurope did but the ‘territorial integrity’crisis activate nationalism and legiti-mise the idea of defending Spanish val-ues and the flag,” said Kiko Llaneras, anelectoral analyst wrote in El País, thenewspaper.

How does it affect Pedro Sanchez?

Both Mr Sánchez and Susana Díaz,PSOE leader in Andalucia, have tried topersuade the PP and Ciudadanos to joininformingabufferagainst thefar-right.

“The results in Andalucia reinforceourcommitmenttodefendtheconstitu-tion and democracy against fear,” MrSánchez tweeted yesterday. Yet there islittle sign the opposition is keen, withthe PP and Ciudadanos urging MrSánchez to call national elections. “Theloss in Andalucia is the loss of PedroSánchez,” said José Manuel Villegas,Ciudadanosgeneral secretary.

But after such a loss in Andalucia,with the right on the rise and with ablame game between Mr Sánchez and MsDíaz inevitable, callingnewelectionsisanunattractiveprospect.

“After getting only 28 per cent of thevote in the PSOE’s breadbasket, you

have to consider when to call elections alot more calmly,” said Jorge Galindo, aSpanishpoliticalanalyst.

Where does PP go from here?

The PP has framed the election as a vic-tory. It is, in the sense that in losing310,000 votes and seven seats, the partydidnotdropanymorethanpredicted.

But the traditional centre-right partywill have to fight on both fronts, guard-ing its traditional centre-leaning elec-torate while appealing to voters who arelookingto itsrightwingrival.

For Ciudadanos, while it gained 12seats and almost 300,000 votes com-pared with 2015, it was a “bitter vic-tory”, said Mr Simón. The party failed toovertake the PP and will find it hard toclaimto leadaregionalgovernment.

Is Spain now a five-party system?

Yes. Despite the importance of immi-gration as an issue in the region, there isno reason to think that Vox’s rise wasunique to Andalucia. With other reg-ional polls due in May, its influence islikely to rise, and the left’s inability totake advantage of PSOE’s decline sug-gests itwill struggle tomotivatevoters.

Spain. Electoral upset

Far-right Vox on the rise after Andalucia pollCentre left loses control of

region in result that presages

further political turmoil

At the ready:riot police standby yesterdayafter high schoolstudentsprotested in thenorth Parissuburb ofAubervilliersThomas Samson/AFP/Getty

Vox’s FranciscoSerrano after the vote

whose core base was traditionally Italy’snorthern business leaders. Mr Salvini“is not maintaining the promises hemade to business” of more infrastruc-turespendingandtaxbreaks,hesaid.

Instead, the government has adoptedelection manifesto promises made byFive Star, the League’s coalition partner,to create a universal income for the job-less and renationalise the telecoms net-workandAlitalia, theairline.

Conversations in the business com-munity have begun to include refer-ences to the fascist era. One businessleader close to Mr Bonomi drew a paral-lel between the stand entrepreneurs aretaking and the 1920s Aventine effortagainstBenitoMussolini’sgovernment.

Italy’s perennial north-south divide isan additional source of tension. InMarch’s elections, Five Star won in thepoorer south while the League prevailedintherichernorth.

“Milan is really Mitteleuropa, centralEuropean rather than Italy, in all hon-esty,” said Mr Bonomi. “Those who arein business in Europe understand whatcredibility is. We in the markets are pay-ing for the Italian state’s lack of credibil-ityeveryday.”

which has only recently emerged fromrecession, will tip into another down-turn. The economy stagnated in thethird quarter and business confidence isfaltering. The government’s budget pro-vides handouts for the poorer southinstead of granting tax cuts and reform-ingthe labourmarket,MrBonomisaid.

“We need to be the locomotive for the

country. We have to be allowed to growfaster,”hesaid.

Mr Bonomi is supported by otherentrepreneur groups. “We are going tomarch because we don’t want to give upon the momentum of growth which weworked so hard to rebuild out of the eco-nomic crisis,” said Giorgio Merletti,president of Confartigianato, the arti-sans’andentrepreneurs’association.

Agostino Bonomo, chairman of Con-fartigianato Veneto, said he felt let downby Matteo Salvini, the League’s leader,

economy. They plan another protestnext week in Milan, Italy’s financial andfashioncentre.

“I will not give in to decline,” said MrBonomi, owner of a small biotech com-pany who represents nearly 7,000 busi-ness owners in one of Europe’s richestregions. “The vision espoused by pop-ulism and nationalism is antithetical tomodernlife.”

Thesearetryingtimes for Italianbusi-nesses. Entrepreneurs in the eurozone’sthird-largest economy find themselvesin the front line of a stand-off betweenthe Five Star-League government andEuropean authorities over budget plansthatwouldputpressureonpublicdebts.

The fractious debate has causedspreads on Italian 10-year BTP sover-eigndebt toclimb, in turnforcing Italianbanks, the biggest holders of Italian sov-ereign paper, to hoard capital to covertheir losses. That means less capitalavailable for loans,MrBonomisaid.

“We were expecting a strong restric-tion of credit in 2019,” he told the Finan-cial Times. “But we are receiving indica-tions from some of our members thatthis ishappeningnow.”

Business leaders worry that Italy,

RACHEL SANDERSON — MILAN

When Carlo Bonomi took to the stageat Milan’s La Scala opera house lastmonth to decry Rome’s expansionarybudget the businessman was receivedwithrapturousapplause.

Industrialists including Massimo Mor-atti, the oil tycoon and longtime InterMilan owner, and Claudio Luti, theKartell design king, stood to cheer theleader of Assolombarda, Italy’s north-ern business association. The sameaudience later whistled and catcalledGiovanniTria, thefinanceminister.

“The opposition exists! It is calledAssolombarda,” said Dagospia, thesatiricalpoliticalwebzine inRome.

Facing a populist government and thedecline of pro-business moderate par-ties, entrepreneurs such as Mr Bonomiare denouncing policies they say are iso-lationist and could ransack state coffersat theexpenseof futuregenerations.

About 3,000 business leaders, repre-senting 13m workers and more than65 per cent of Italian GDP, held a rally inthe industrial city of Turin yesterday,demanding the government unblockinfrastructure projects to boost the

Budget protests

Italian entrepreneurs take fight to Rome’s populist coalition

Carlo Bonomi wonapplause when hedeclared that thepopulist visionwas ‘antitheticalto modern life’

World Markets

STOCK MARKETS

Mar 30 prev %chg

S&P 500 2365.93 2361.13 0.20


Dow Jones Ind 20703.38 20659.32 0.21

FTSEuro�rst 300 1500.72 1493.75 0.47

Euro Stoxx 50 3481.67 3475.27 0.18

FTSE 100 7369.52 7373.72 -0.06

FTSE All-Share 4011.01 4011.80 -0.02

CAC 40 5089.64 5069.04 0.41

Xetra Dax 12256.43 12203.00 0.44

Nikkei 19063.22 19217.48 -0.80

Hang Seng 24301.09 24392.05 -0.37

FTSE All World $ 297.99 297.73 0.09

CURRENCIES

Mar 30 prev

$ per € 1.074 1.075

$ per £ 1.249 1.241

£ per € 0.859 0.866

¥ per $ 111.295 111.035

¥ per £ 139.035 137.822

€ index 89.046 89.372

SFr per € 1.069 1.072

Mar 30 prev

€ per $ 0.932 0.930

£ per $ 0.801 0.806

€ per £ 1.164 1.155

¥ per € 119.476 119.363

£ index 76.705 76.951

$ index 104.636 103.930


Mar 30 prev %chg

Oil WTI $ 50.22 49.51 1.43

Oil Brent $ 52.98 52.54 0.84

Gold $ 1248.80 1251.10 -0.18

INTEREST RATES

price yield chg

US Gov 10 yr 98.87 2.38 0.00

UK Gov 10 yr 100.46 1.21 -0.03

Ger Gov 10 yr 98.68 0.39 -0.01

Jpn Gov 10 yr 100.45 0.06 0.00

US Gov 30 yr 100.14 2.99 0.01

Ger Gov 2 yr 102.58 -0.75 0.00

price prev chg

Fed Funds E� 0.66 0.66 0.00

US 3m Bills 0.78 0.78 0.00

Euro Libor 3m -0.36 -0.36 0.00


LAURA NOONAN — DUBLINJENNIFER THOMPSON — LONDON

AboastfulWhatsAppmessagehas costa London investment banker his joband a £37,000 fine in the first case ofregulators cracking down on commu-nications over Facebook’s popularchatapp.

The fine by the Financial ConductAuthority highlights the increasingproblem new media pose for companiesthat need to monitor and archive theirstaff’scommunication.

Several large investment banks havebanned employees from sending clientinformation over messaging servicesincluding WhatsApp, which uses anencryption system that cannot beaccessed without permission from theuser. Deutsche Bank last year bannedWhatsApp from work-issued Black-

Berrys after discussions with regulators.Christopher Niehaus, a former Jeffer-

ies banker, passed confidential clientinformation to a “personal acquaint-ance and a friend” using WhatsApp,according to the FCA. The regulator saidMr Niehaus had turned over his devicetohisemployervoluntarily.

The FCA said Mr Niehaus had sharedconfidential informationonthemessag-ing system “on a number of occasions”lastyearto“impress”people.

Several banks have banned the use ofnew media from work-issued devices,but the situation has become trickier asbanks move towards a “bring your owndevice” policy. Goldman Sachs hasclamped down on its staff’s phone billsas iPhone-loving staff spurn their work-issuedBlackBerrys.

Bankers at two institutions said staffare typically trained in how to use new

media at work, but banks are unable toban people from installing apps on theirprivatephones.

Andrew Bodnar, a barrister at MatrixChambers, saidthecaseset“aprecedentin that it shows the FCA sees these mes-saging apps as the same as everythingelse”.

Information shared by Mr Niehausincluded the identity and details of aclient and information about a rival ofJefferies. In one instance the bankerboasted how he might be able to pay offhismortgage ifadealwassuccessful.

Mr Niehaus was suspended from Jef-feries and resigned before the comple-tionofadisciplinaryprocess.

Jefferies declined to comment whileFacebook did not respond to a requestforcomment.Additional reportingbyChloeCornishLombard page 20

Citywatchdog sends a clearmessage asbanker loses joboverWhatsAppboast

Congressional Republicans seeking toavert a US government shutdown afterApril 28 have resisted Donald Trump’sattempt to tack funds to pay for a wallon the US-Mexico border on tostopgap spending plans. They fearthat his planned $33bn increase indefence and border spending couldforce a federal shutdown for the firsttime since 2013, as Democrats refuseto accept the proposals.US budget Q&A andTrump attack over health bill i PAGE 8

Shutdown risk as borderwall bid goes over the top

FRIDAY 31 MARCH 2017

Briefing

iUSbargain-hunters fuel EuropeM&AEurope has become the big target for cross-borderdealmaking, as US companies ride a Trump-fuelledequity market rally to hunt for bargains across theAtlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

iReport outlines longerNHSwaiting timesA report on how the health service can survivemore austerity has said patients will wait longer fornon-urgent operations and for A&E treatment whilesome surgical procedures will be scrapped.— PAGE 4

iEmerging nations in record debt salesDeveloping countries have sold record levels ofgovernment debt in the first quarter of this year,taking advantage of a surge in optimism towardemerging markets as trade booms.— PAGE 15

i London tower plans break recordsA survey has revealed that arecord 455 tall buildings areplanned or under constructionin London. Work began onalmost one tower a weekduring 2016.— PAGE 4

iTillerson fails to ease Turkey tensionsThe US secretary of state has failed to reconciletensions after talks in Ankara with President RecepTayyip Erdogan on issues including Syria and theextradition of cleric Fethullah Gulen.— PAGE 9

iToshiba investors doubt revival planIn a stormy three-hour meeting, investors accusedmanagers o�aving an entrenched secrecy cultureand cast doubt on a revival plan after Westinghousefiled for Chapter 11 bankruptcy protection.— PAGE 16

iHSBCwoos transgender customersThe bank has unveiled a range of gender-neutraltitles such as “Mx”, in addition to Mr, Mrs, Miss orMs, in a move to embrace diversity and cater to theneeds of transgender customers.— PAGE 20

Datawatch






Recent attacks —notably the 2011massacre byAnders Breivik inNorway, theattacks in Parisand Nice, and theBrussels suicidebombings — havebucked the trendof generally lowfatalities fromterror incidents inwestern Europe

Sources: Jane’s Terrorism and Insurgency Centre

Terror attacks in western Europe

Highlighted attack Others

NorwayParis Nice

Brussels

A Five Star plan?Italy’s populists are trying to woothe poor — BIG READ, PAGE 11

WORLDBUSINESSNEWSPAPER

Trump vs the ValleyTech titans need to minimisepolitical risk — GILLIAN TETT, PAGE 13

Dear Don...May’s first stab at the break-upletter — ROBERT SHRIMSLEY, PAGE 12

Lloyd’s of London chose Brus-sels over “five or six” othercities in its decision to set up anEU base to help deal with the expected loss of passportingrightsafterBrexit.

John Nelson, chairman of thecenturies-old insurance mar-ket, said he expected other

insurers to follow. Most of thebusiness written in Brusselswill be reinsured back to thesyndicates at its City of Londonheadquarters,picturedabove.

The Belgian capital had notbeen seen as the first choice forLondon’s specialist insurancegroups after the UK leaves the

EU, with Dublin and Luxem-bourg thought to be more likelyhomes for the industry. ButMr Nelson said the city won onits transport links, talent pooland “extremely good regula-toryreputation”.Lex page 14Insurers set to follow page 18

Lloyd’s of Brussels Insurancemarketto tapnew talent poolwithEUbase

AFP

JAMES BLITZ — WHITEHALL EDITOR

A computer system acquired to collectduties and clear imports into the UKmay not be able to handle the hugesurge inworkloadexpectedonceBritainleaves the EU, customs authorities haveadmittedtoMPs.

HM Revenue & Customs told a parlia-mentary inquiry that the new systemneeded urgent action to be ready byMarch 2019, when Brexit is due to becompleted, and the chair of the probesaid confidence it would be operationalintime“hascollapsed”.

Setting up a digital customs systemhas been at the heart of Whitehall’sBrexit planning because of the fivefoldincrease in declarations expected atBritishportswhentheUKleavestheEU.

About 53 per cent of British importscome from the EU, and do not requirechecks because they arrive through thesingle market and customs union. ButTheresa May announced in January thatBrexit would include departure fromboth trading blocs. HMRC handles 60mdeclarations a year but, once outside thecustoms union, the number is expectedtohit300m.

The revelations about the system,called Customs Declaration Service, arelikely to throw a sharper spotlight onwhether Whitehall can implement ahost of regulatory regimes — in areasranging from customs and immigrationto agriculture and fisheries — by thetimeBritain leavestheEU.

Problems with CDS and other projectsessential toBrexit could force London to

adjust its negotiation position with theEU, a Whitehall official said. “If runningour own customs system is provingmuch harder than we anticipated, thatought to have an impact on how wepress forcertainoptions inBrussels.”

In a letter to Andrew Tyrie, chairmanof the Commons treasury select com-mittee, HMRC said the timetable fordelivering CDS was “challenging butachievable”. But, it added, CDS was “acomplex programme” that needed to belinked to dozens of other computer sys-tems to work properly. In November,HMRC assigned a “green traffic light” toCDS, indicating it would be deliveredontime. But last month, it wrote to thecommittee saying the programme hadbeen relegated to “amber/red,” whichmeans there are “major risks or issuesapparent inanumbero£eyareas”.

HMRC said last night: “[CDS] is ontrack to be delivered by January 2019,and it will be able to support frictionlessinternational trade once the UK leavesthe EU . . . Internal ratings are designedto make sure that each project gets thefocus and resource it requires for suc-cessfuldelivery.”

HMRC’s letters to the select commit-tee, which will be published today, pro-vide no explanation for the ratingchange, but some MPs believe it wascaused by Mrs May’s unexpected deci-sionto leavetheEUcustomsunion.Timetable & Great Repeal Bill page 2Scheme to import EU laws page 3Editorial Comment & Notebook page 12Philip Stephens & Chris Giles page 13JPMorgan eye options page 18

HMRCwarnscustoms risksbeing swampedbyBrexit surge3Confidence in IT plans ‘has collapsed’3Fivefold rise in declarations expected

World Markets

STOCK MARKETS

Mar 31 prev %chg

S&P 500 2367.10 2368.06 -0.04


Dow Jones Ind 20689.64 20728.49 -0.19

FTSEuro�rst 300 1503.03 1500.72 0.15

Euro Stoxx 50 3495.59 3481.58 0.40

FTSE 100 7322.92 7369.52 -0.63

FTSE All-Share 3990.00 4011.01 -0.52

CAC 40 5122.51 5089.64 0.65

Xetra Dax 12312.87 12256.43 0.46

Nikkei 18909.26 19063.22 -0.81

Hang Seng 24111.59 24301.09 -0.78

FTSE All World $ 297.38 298.11 -0.24

CURRENCIES

Mar 31 prev

$ per € 1.070 1.074

$ per £ 1.251 1.249

£ per € 0.855 0.859

¥ per $ 111.430 111.295

¥ per £ 139.338 139.035

€ index 88.767 89.046

SFr per € 1.071 1.069

Mar 31 prev

€ per $ 0.935 0.932

£ per $ 0.800 0.801

€ per £ 1.169 1.164

¥ per € 119.180 119.476

£ index 77.226 76.705

$ index 104.536 104.636


Mar 31 prev %chg

Oil WTI $ 50.46 50.35 0.22

Oil Brent $ 53.35 53.13 0.41

Gold $ 1244.85 1248.80 -0.32

INTEREST RATES

price yield chg

US Gov 10 yr 98.63 2.41 -0.01

UK Gov 10 yr 100.35 1.22 0.02

Ger Gov 10 yr 99.27 0.33 -0.01

Jpn Gov 10 yr 100.36 0.07 0.00

US Gov 30 yr 99.27 3.04 0.01

Ger Gov 2 yr 102.57 -0.75 0.00

price prev chg

Fed Funds E� 0.66 0.66 0.00

US 3m Bills 0.78 0.78 0.00

Euro Libor 3m -0.36 -0.36 0.00


ALEX BARKER — BRUSSELSGEORGE PARKER — LONDONSTEFAN WAGSTYL — BERLIN

TheEUyesterdaytookatoughopeningstance in Brexit negotiations, rejectingBritain’s plea for early trade talks andexplicitly giving Spain a veto over anyarrangementsthatapplytoGibraltar.

European Council president DonaldTusk’s first draft of the guidelines,which are an important milestone onthe 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.

The decision to add the clause givingSpain the right to veto any EU-UK tradedeals covering Gibraltar could make the300-year territorial dispute betweenMadrid and London an obstacle to

ambitioustradeandairlineaccessdeals.Gibraltar yesterday hit back at the

clause, saying the territory had “shame-fully been singled out for unfavourabletreatment by the council at the behest ofSpain”. Madrid defended the draftclause,pointingoutthat itonlyreflected“thetraditionalSpanishposition”.

Senior EU diplomats noted thatMr Tusk’s text left room for negotiatorsto work with in coming months. Primeminister Theresa May’s allies insistedthat the EU negotiating stance waslargely “constructive”, with one saying itwas “within the parameters of what wewere expecting, perhaps more on theupside”.

Britishofficialsadmittedthat theEU’sinsistence on a continuing role for theEuropean Court of Justice in any transi-tiondealcouldbeproblematic.

Brussels sees little room for compro-

mise. If Britain wants to prolong itsstatus within the single market afterBrexit, the guidelines state it wouldrequire “existing regulatory, budgetary,supervisory and enforcement instru-mentsandstructures toapply”.

Mr Tusk wants talks on future tradeto begin only once “sufficient progress”has been made on Britain’s exit bill andcitizen rights, which Whitehall officialsbelieve means simultaneous talks arepossible if certainconditionsaremet.

Boris Johnson, the foreign secretary,reassured European colleagues at aNato summit in Brussels that Mrs Mayhad not intended to “threaten” the EUwhen she linked security co-operationafterBrexitwithatradedeal.Reports & analysis page 3Jonathan Powell, Tim Harford &Man in the News: David Davis page 11Henry Mance page 12

Brussels takes tough stance onBrexitwith Spainhandedveto overGibraltar

About 2.3m people will benefit fromtoday’s increase in the national livingwage to £7.50 per hour. But the risewill pile pressure on English councils,which will have to pay care workers alot more. Some 43 per cent of caresta� — amounting to 341,000 peopleaged 25 and over — earn less than thenew living wage and the increase isexpected to cost councils’ care services£360m in the coming financial year.Analysis i PAGE 4

Living wage rise to pilepressure on care services

SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80





Censors and sensitivityWarning: this article may be upsetting — LIFE & ARTS

HOW DRIVERLESS TECHNOLOGY IS CHANGING AN AMERICAN WAY OF LIFE

THE END OF THE ROAD FT WEEKEND MAGAZINE

Escape the taper trapHow high earners can evade a pension headache — FT MONEY

The lure of the exoticRobin Lane Fox on the flair of foreign flora — HOUSE & HOME

How To Spend It

Chic new lodgings in ScotlandMAGAZINE

Art of persuasionMystery deepensover disputed painting of Jane Austen

Austen’s descendants insist the Rice portrait depicts her as a girl — seemagazine Bridgeman Art Library

RALPH ATKINS — ZURICHDUNCAN ROBINSON — BRUSSELS

Credit Suisse has been targeted bysweeping tax investigations in the UK,France and the Netherlands, settingback Switzerland’s attempts to clean upits imageasataxhaven.

The Swiss bank said yesterday it wasco-operating with authorities after itsoffices inLondon,ParisandAmsterdamwere contacted by local officials“concerningclient taxmatters”.

Dutch authorities said their counter-parts in Germany were also involved,while Australia’s revenue departmentsaid itwas investigatingaSwissbank.

The inquiries threaten to undermineefforts by the country’s banking sectorto overhaul business models and ensurecustomers meet international taxrequirements following a US-led clamp-down on evaders, which resulted inbillionsofdollars infines.

The probes risk sparking an interna-tional dispute after the Swiss attorney-general’s office expressed “astonish-ment” that it had been left out of theactions co-ordinated by Eurojust, theEU’s judicial liaisonbody.

Credit Suisse, whose shares fell 1.2 percent yesterday, identified itself as thesubject ofinvestigations in the Nether-lands, France and the UK. The bank said

it followed “a strategy offull client taxcompliance” but was still trying togather informationabouttheprobes.

HM Revenue & Customs said it hadlaunched a criminal investigation intosuspected tax evasion and money laun-dering by “a global financial institutionand certain ofits employees”. The UKtax authority added: “The internationalreach of this investigation sends a clearmessage that there is no hiding place forthoseseekingtoevadetax.”

Dutch prosecutors, who initiated theaction, said they seized jewellery, paint-ings and gold ingots as part of theirprobe; while French officials said theirinvestigation had revealed “severalthousand” bank accounts opened inSwitzerland and not declared to Frenchtaxauthorities.

The Swiss attorney-general’s officesaid it was “astonished at the way thisoperation has been organised with thedeliberate exclusion of Switzerland”. Itdemanded a written explanation fromDutchauthorities.

In 2014, Credit Suisse pleaded guiltyin the US to an “extensive and wide-ranging conspiracy” to help clientsevadetax. Itagreedtofinesof$2.6bn.Additional reportingbyLauraNoonan inDublin, Caroline Binham and VanessaHoulder in London, andMichael StothardinParis

Credit Suisseengulfed infresh taxprobe3UK, France and Netherlands swoop3Blow for bid to clean up Swiss image

FEBR

UARY

4 2017

THE RISE OF ECO-GLAM

390_Cover_PRESS.indd 1 19/01/2017 13:57

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A truce has been struck in the US-China tradewar but the terms of that ceasefire make clearwho holds the upper hand when hostilitiesinevitablyresume.

In exchange for the US not imposing highertariffsonabouthalfofChineseexports fromJanuary1,Bei-jing has agreed to discuss a long list of concessions thatwould, if fully implemented, fundamentally alter the verynatureof theChineseeconomicsystem.

According to a White House summary of the dinnermeeting between presidents Donald Trump and Xi Jinpingat the G20 summit in Buenos Aires on Saturday evening,China has agreed in the short term to buy a “very substan-tial amount of agricultural, energy, industrial and otherproduct fromtheUS”.

It has also agreed to begin immediately negotiations on“structural changes with respect to forced technologytransfer, intellectual property protection, non-tariffbarriers, cyber intrusions and cyber theft, services andagriculture”.

The US has offered nothing except a 90-day deadline,after which it will increase tariffs on $200bn worth of Chi-nese imports from 10 per cent to 25 per cent — as it origi-nallyplannedtodoonJanuary1—ifMrTrumpisnotsatis-fiedwithBeijing’sconcessions.

Since it is virtually impossible for Mr Xi to implement oreven agree to such far-ranging changes to China’s econ-omy, it is almost certain that the trade war will resumewithavengeancebytheendofFebruary.

It is certainly true that Mr Xi has bought himself and thestruggling Chinese econ-omy some time. He andhis colleagues must behoping that Robert Muel-ler, the special counselinvestigating allegedRussian interference inUS elections, is closing inon his quarry or thatMr Trump will be other-wisedistractedwhenthe90daysareover.

Some critics have questioned why Mr Trump wouldagree to a truce involving such non-committal promisesfrom China. By doing so, he has diluted the leverage hecreated out of nothing by imposing the trade tariffs in thefirstplace.

But by pausing and setting onerous terms for his negoti-ating partner, he has achieved the appearance of seemingstrongandreasonableat thesametime.

This allows the US president to mollify those in hisadministration, such as Steven Mnuchin, the Treasurysecretary, and Larry Kudlow, the National EconomicCouncil director, who have argued for more leniencytowards China while giving up nothing except a smallamount of the momentum that was building towards anall-out tradeconflict.

Markets have breathed a sigh of relief, and no doubtmany of the heads of state Mr Trump met during the G20summit are also pleased to see him appear more moderateandreasonableontrade.

However, nobody in Beijing will be under any illusionsthat the trade war with the US has been averted, even ifthat ishowit isbeingspuninChina’s tightlycontrolledoffi-cialmedia.

In stark contrast to the White House statement, China’sofficial summary of the Buenos Aires meeting did notmention the 90-day deadline or most of the other ChineseconcessionsoutlinedbytheUS.

Reading the Chinese statement in isolation, mostobservers would conclude that Mr Xi had won a big diplo-matic victory by forcing Mr Trump to abandon his tradewarunilaterally.

But whether Beijing publicly acknowledges the prom-ises included in the White House statement or not is irrele-vant since the power to impose higher tariffs in 90 days’timeisentirely inthehandsofMrTrump.

[email protected]

GLOBAL INSIGHT

CHINA

JamilAnderlini

Xi concessions showTrump holds all thecards in trade dispute

Nobody in Beijingwill be under anyillusions that thetrade war hasbeen averted

INTERNATIONAL

JAMES POLITI — BUENOS AIRESTOM HANCOCK — ZHENGZHOU

Steven Mnuchin, the US Treasury secre-tary, has warned China to avoid “softcommitments” in a new round of tradetalks expected to follow a ceasefire dealreached at the weekend between presi-dentsDonaldTrumpandXi Jinping.

In a telephone interview with theFinancial Times after the truce wassealed at the G20 summit in BuenosAires, Mr Mnuchin urged Beijing toflesh out its summit pledges duringnegotiations, which will unfold over thenext threemonths.

“There’s a 100 per cent unanimousview on our economic team that thisneeds to be a real agreement,” Mr

Mnuchin said. “These can’t be soft com-mitments from China. There need to bespecific dates, specific action items,” headded.

According to the agreement that hitthe pause button on the months-longtrade war between Washington and Bei-jing, Mr Trump agreed not to ratchet uptariffs on $200bn of Chinese importsfrom 10 per cent to 25 per cent on Janu-ary1,asplanned.

In exchange, China agreed to buy USgoods to narrow the trade gap betweenthe countries and move ahead withstructural changes to its economy toaddress practices such as intellectualproperty theft and the forced transfer oftechnology that the US regards asunfair.

Mr Trump also wrote on Twitter yes-terdaythat Beijinghadagreedtocut tar-iffs on auto imports, though the Chinesegovernment did not immediately con-firmanychange induties.

Mr Mnuchin’s comments suggestthere is doubt among US officials aboutwhether China will live up to the termsof the truce. The US said that if a dealwas not reached on these sensitiveissues within three months, the tariffswouldriseasoriginallyexpected.

The deal capped a period of seesawingsignals about an agreement. After thetwo delegations arrived in Argentina,there was a meeting between MrMnuchin, Robert Lighthizer, the UStrade representative, and Liu He, theChinese vice-premier, on Friday,according to a senior administrationofficial.

That night, there was also a briefexchange between Mr Xi and Mr Trumpat the main social event of the G20 sum-mit,agaladinner.

But the deal only came together oncethepresidentsmet faceto faceoverasir-loin steak dinner at the Park Hyatt hotelon Saturday night. “Xi laid out in great

detail what they were willing to do,” MrMnuchinsaid.

“This was the first time that the Chi-nese came back with a long, specificresponse to both the structural issuesand the non-structural issues. The pres-ident made a decision on how to pro-ceed,”headded.

Apart from its main demands, the UShas also pressed China to refrain fromcompetitive devaluation of its currencyto offset the impact of the tariffs. WhileChinese officials had previously com-mitted not to use such a tool in the tradewar, it was reiterated again. “On cur-rency we received commitments thatthey understand that issue and will actappropriately,”MrMnuchinsaid.

The deal has been met with reliefamong US business groups, but somesupporters were disappointed the USdidnotmaintainahardlinewithChina.Editorial Comment page 12Lawrence Summers page 13

Tariff war

Mnuchin warns Beijing on truce pledgesUS Treasury secretarytells China to avoid ‘softcommitments’ over trade

‘There’s a100 percentunanimousview on oureconomicteam thatthis needsto be a realagreement’StevenMnuchin

SIMEON KERR — DUBAIANJLI RAVAL — LONDON

Qatar unexpectedly quit Opec, the car-tel of oil-producing countries, after 57years of membership, billing its move asan apolitical attempt to refocus onexpanding itsnaturalgasexports.

But its withdrawal has stoked suspi-cion that Qatari leaders are seeking toirritate their regional rival Saudi Arabiaand curry favour with US presidentDonaldTrump.

Saad al-Kaabi, Qatar’s minister ofstate for energy affairs, said the decisionwould enable “focused efforts” on gasproduction. But it created shockwaves,making Qatar the first Middle Easterncountry to abandon the producer groupand further fracturing Opec’s most pow-erfulbloc, theGulf states.

Several hours later, Sheikh Hamadbin Jassim Al Thani, Qatar’s formerprime minister, piled into the debate,criticising Opec and by extension theSaudi rulers who have dominated thecartel for decades as the world’s swingproducer.

“This organisation has become use-less and adds nothing to us,” he tweeted.“It is only being used for purposesaimedatharmingournational interest.”

His intervention reinforced analysts’views that Doha’s exit was a reaction to adiplomatic and economic embargoimposed on Qatar by Saudi Arabia andthe United Arab Emirates in 2017 — ablockade that has pushed Doha furtherintothearmsofTurkeyandIran.

The embargo was designed to punishDoha for its maverick regional foreignpolicy, which Saudi Arabia and the UAEcontend was masterminded by SheikhHamad and has included support forterrorism — a charge that Qatar vehe-mently denies. Riyadh has in additionbeen angered by Qatar’s perceivedefforts to promote political Islamistmovements across the Middle East

through its Al Jazeera news channel.“The longstanding Saudi-led eco-

nomic and political boycott of Qatar isbound to have played a part in the deci-sion,” said Ashley Kelty, oil and gasresearch analyst at Cantor FitzgeraldEurope. “The exit of Qatar is suggestiveof growing dissatisfaction among OpecnationswiththeSaudis’ leadership.”

Leaving a cartel that has historicallyreceived regular western condemnationis also a deft nod to the US, where MrTrump has been voluble in putting pres-sureonOpectokeepoilpricesdown.

“Oil prices getting lower. Great! Like abig Tax Cut for America and the World.Enjoy!” he tweeted last month. “ThankyoutoSaudiArabia,but let’sgo lower!”

After Mr Trump’s initial support forthe embargo, the US has in recentmonths increased efforts to bridge theGulf divide that has turned its alliesagainst one another while Washingtonseeks to contain Iran. Diplomats have

said western powers would try to useincreased leverage over Saudi Arabia inthe wake of the killing of journalistJamal Khashoggi to end Riyadh’s dis-pute with Qatar. Videos purporting toshow Saudi-Qatari border posts beingprepared to reopen recently went viralassuchspeculationmounted.

Few analysts regard Qatar’s exit to bea big problem for Opec, which is holdinga ministerial meeting later this week inViennathatwilldictatepolicy for2019.

Qatar, which produces only about600,000 barrels a day of crude, is a mar-ginal player in Opec, where a range ofmembers from Gulf sheikhdoms tosocialist Venezuela try to overcomedivergent political ideologies to agree oncollectiveactiononoiloutput.

“It’s not of any significance for theoperation or effectiveness of Opec as anorganisation,” said Opec observer PaulHorsnell, head of commodities researchatStandardChartered.

The six-member Gulf Co-operationCouncil, which had been touted as theArab world’s only functioning tradebloc, had already been put on life sup-portbytheSaudi-ledembargo.

For years, Saudi Arabia, Kuwait, theUAE and Qatar, all GCC members, hadgathered to co-ordinate before all otherOpec members — including regionalrival Iran — met to discuss any changesto production. Since the embargo, how-ever, Qatar has been barred from theseclosed-doordiscussions.

Riyadh has for two years focused onits ties with Russia and, increasingly, theUS, calling into question the importanceof Opec. “[Qatar’s exit] may not seemlike a big deal,” said one oil analyst, “butit’s symbolic and the Saudis have onlydonethis tothemselves.”Additional reporting by Ahmed Al Omranand Andrew England in LondonLex page 14Markets page 27

Middle East. Oil & gas

Qatar’s Opec departure fuels suspicionExit viewed as Doha reaction

to diplomatic and economic

embargo led by Saudi Arabia

Qatar Petroleumin Doha. Thecountry is thefirst in theMiddle East toabandonproducergroup OpecSTR/EPA-EFE/REX/Shutterstock

SAM FLEMING — WASHINGTON

A senior Federal Reserve official hasurged the central bank to tread care-fully and be “very patient” as it consid-ers further increases in US interestrates given the impact of past rises, evi-dence of slower inflation and softeningglobalgrowth.

Robert Kaplan, president of the FederalReserve Bank of Dallas, said he was see-ingsignsofweakness insectorssensitiveto higher interest rates, such as housing,aswellasmoresluggishgrowthreadingsoverseas and tepid US inflation data. Hepredicted expansion would decelerateover the next two years following astrongperformance in2018.

“I want to avoid a situation where wehave overdone it,” Mr Kaplan said in aninterview with the Financial Times. “Ithink because inflation readings aremore muted, we have the luxury to bepatient and be very vigilant here, andtrytoavoidmakingthatmistake.”

Mr Kaplan argued that the fiscal stim-ulus pushed through by Congress thisyear was set to wane in the comingyears, making it more important toexercise caution on rate rises. The boostfrom higher public spending may havebeen “masking” some of the effects on

the economy from the Fed’s eight quar-ter-point increases in short-term rates,as well as its balance sheet reductionprogramme,hesaid.

“We need to be attuned to the ideathat the economy may look very differ-ent in the first half of 2019 or the middleof 2019 than it does today,” he said. “Thefiscal stimulus has the effect of maybemasking some of these other develop-ments.”

The US monetary policy outlook isbecoming murkier as official interestrates get closer to neutral levels that nei-ther stimulate the economy nor hold itback,andas theexpansion losessomeofits shine. Jay Powell, the Fed chairman,said in a speech last week that policywas not on a “preset” course and thatrates were not far from the bottom endof the range of estimates for neutral pol-icy, sparkingarally inequitiesas tradersspeculate that theFedwouldnotneedtolift ratesa lot further.

Mr Kaplan declined to say whether hewouldsupportan increase inshort-terminterest rates at the central bank’sDecember18-19meeting, sayingtheFedwas entering a phase where the policyoutlook was becoming less clear. Whilehe would like the Fed to move policy to alevel thatno longerstimulatedtheecon-

omy, he said he did not see argumentsforrestrictivesettings.

“At this stage I need to strive to avoidbeing pre-determined or rigid in wherewe go with the path of rates,” the centralbanker said. He added that his own esti-mate of the neutral rates was somewhatbelow the median Fed forecast, and that

he believed rates were currently not farfromneutral.

He said the possible “downside risks”included the waning impulse from fiscalstimulus, the effects of past rate rises,signs of weakness in the housing sector,decelerating global growth, and theimpactof tariffsandtradetensions.

The policymaker also shared con-

cerns flagged up last week in the Fed’sinaugural Financial Stability Reportabout rising levels of corporate debt togrossdomesticproduct.Hedidnotsee itas a “systemic risk” to the financial sys-tem but, in a slowing economy, the USmight end up seeing more defaultsbecause of the debts companies hadtakenon.

Mr Kaplan said that he was payingclose attention to slower inflation num-bers, which should allow the Fed to takeits time over policy tightening. Growthin the core personal consumptionexpenditures index slowed to 1.8 percent last month, according to recent fig-ures, down from 2 per cent in Septem-ber and its weakest reading since Febru-ary.

While cyclical forces such as the tightlabour market should push inflationupwards, “structural” forces such asglobalisation and the muting effect ofnew technologies on companies’ abilityto boost prices were working in theopposite direction. “I am mindful of thefact we are later in the economic cycle —I don’t know how late we are but we arelater, and so I think the fact that infla-tion readings are more muted also givesus some latitude which allows us to bepatient,”MrKaplansaid.

US economy

Dallas Fed chief urges caution on further interest rate risesJOHN REEDSOUTH-EAST ASIA CORRESPONDENT

The head of Rappler, the Philippinenews website known for its unblink-ingly critical coverage of PresidentRodrigo Duterte, posted bail for allegedtax code violations after turning her-self intoauthoritiesyesterday.

Maria Ressa filed bail at a Manila courtfollowing the issuing of an arrest war-rant against her, Rappler reported. Herarraignmentwasset forFriday.

The tax charge is one of five levelledby authorities last week against thenews website, which Mr Duterte and hisadministration have accused of violat-ing a constitutional ban on foreign own-ershipofPhilippinemedia.

Ms Ressa has denied Rappler brokethe law and accused authorities of sin-gling it out for legal harassment becauseof itscoverageof theadministration.

“We verified that an arrest warranthad been issued on the basis of what webelieve are politically motivatedcharges,”MsRessasaid.

“I surrendered to the court this morn-ing, went through the process of what acriminal would go through, and filedbail without surrendering my right toquestion the court’s jurisdiction over

this case.” She added: “This is a clearcaseofharassment.”

Rappler made a name for itself in itstough coverage of the populist cam-paign that brought Mr Duterte to powerin 2016 and his actions since takingoffice. The site has reported on theadministration’s use of social media totarget critics, its deepening ties withChina and the anti-drugs crackdownthathaskilledthousandsofFilipinos.

Mr Duterte has accused Rappler ofbeing “fully owned” by Americans,claiming this violated the Philippines’1987 constitution. In February, the web-site’s main reporter on the presidencywas banned from working in the Mala-canangpresidentialpalace.

“This is not the first time the govern-ment has taken action against Rappler,”said Clarissa David, a professor at theUniversity of the Philippines College ofMass Communications. “I know very lit-tle about the details of the criminal casebut given the context, it looks like this isan attempt to silence independent jour-nalism.”

The government denied the chargesconstituted political persecution. “It’s aquestion of tax evasion,” the presiden-tial spokesman said. “You violate taxlaws, thenyouwillbeprosecuted.”

News website

Duterte critic bailed on tax charge

‘The economy may lookvery different in the firsthalf of 2019 . . . ’Robert Kaplan



DECEMBER 4 2018 Section:Ad Page Time: 3/12/2018 - 12:36 User: william.baxter Page Name: AD PWC, Part,Page,Edition: LON, 7, 1


ROBIN HARDING — TOKYO

Twenty-three days of detention withoutcharge. Interrogations with no lawyerpresent. A criminal conviction rate of99.97 per cent. The arrest of CarlosGhosn has shone a spotlight not just onNissan, the company he chaired, but onJapan’suniquecriminal justicesystem.

The treatment of the Renault chief,following his arrest on suspicion ofunderstating pay in company reports,has sparked outrage in France. Butaccording to campaigners who havelong criticised Japanese police and pros-ecutors, the same things happen to low-er-profilesuspects.

No charges have yet beenbrought against him but withthe world watching, the credi-bility of Japanese law, not justthe Renault-Nissan alliance’sfuture, rests on justice beingseentobedone.

Japan originallybased its criminal lawon that of imperialGermany, said Toshi-nori Wada, a profes-

sor at Keio University in Tokyo. LikeGermany, Japan’s system is inquisi-torial, with courts involved in investiga-ting the facts of a case. Legal statutes aregeneral,giving judgeswidediscretion.

After the second world war, however,Japan fell under US influence. “The cri-minal law remained similar to Germanybut the laws of criminal procedure werechanged in line with the American sys-tem,” said Mr Wada. In the adversarialUS system, the responsibility for gather-ing evidence lies with the prosecutoranddefendant.

The resulting hybrid gives great scopeto prosecutors. The law, such as that onexecutive responsibility for financial

statements, is vague enough that var-ious situations can be construed as acrime. Oversight of investigationsby the court is light. Unlike in Ger-

many, prosecutors have no oblig-ation to bring a case, a fact, say

lawyers, that is the mainreason for Japan’s highconviction rate at trial.“The public prosecutor’sofficehasadiscretionarypower whether to prose-

cute or not,” said Hiroyuki Kamano, alawyer. “If they’re not confident of pre-vailing, theywon’tproceed.”

Prosecutors move to a new postingevery two or three years, and the great-est imperative is to avoid mistakes thatleadtoacquittal.Unlikethehighconvic-tion rate at trial, the rate followingarrest is 40 per cent. These incentives

also explain many other aspects of pros-ecutorial behaviour, such as the deter-mination to extract confessions duringthe23daysofarrest,with interrogationslasting up to eight hours a day. There isnobailbefore indictment.

In white-collar cases, media leaks bol-ster a case that may be uncertain in law.“Otherwise,” said Mr Kamano, “it’s not

easy for them to get legitimacy forcharging a well-known person such asMrGhosn.”Sincethearrest,papershavequestioned his lifestyle. The prosecu-tion of Takafumi Horie, former Live-door chief, for securities fraud took asimilarpattern in2006.

If the initial 23 days is not enough,prosecutors can rearrest the suspect on

a different allegation. Mr Ghosn hasbeen arrested over Nissan’s financialstatements for 2010-14. Prosecutorscould rearrest him for the subsequentfinancial years, giving them another 20daysto interrogatehim.

Campaigners have long argued thesystem leads to wrongful convictions. In2014, Iwao Hakamada, the world’s long-est serving death row inmate, was relea-sed after 46 years on suspicions investi-gators fabricatedsomeof theevidence.

The 23 days of detention “raise therisks of police abuse and coercive self-incrimination”, said the Human RightsNowcampaigngroupin2017.

There have been some reforms. MrWada said the courts have grown dissat-isfied with the practice of holding sus-pects for weeks. In 2009, Japan introdu-ced a system of lay judges, chosen ran-domly, who sit with professional judgesin trials for serious crimes. Anotherreformrequires tapedinterrogations.

While procedure is stacked againstthe defendant, accusations still requireproof. If prosecutors do charge MrGhosn,hewillbe theraresuspectable tomountanaggressivedefence.

Ghosn arrest puts Japanese courts in the spotlightSystem with 99.97% criminal conviction rate gives prosecutors wide powers and rests on justice being seen to be done

Media leaks have beenknown to influenceJapanese courts. Inset,Carlos Ghosn — Kyodo/Getty

INTERNATIONAL

MEHUL SRIVASTAVA — JERUSALEM

In a sign of how Benjamin Netanyahu,the Israeli prime minister, intends tofight back against allegations that hetook bribes and committed fraud, hegave a defiant performance on Sundayinfrontofhisstaunchestsupporters.

Earlier that day, Israeli police recom-mended that Mr Netanyahu be chargedwith bribery, fraud and breach of publictrust — a recommendation that thepolicehavemadetwicebefore inaseriesof investigations that stretch from MrNetanyahu’s taste in expensive cigars tohis preoccupation with winning positivenewscoverage.

“The witch hunt against us contin-ues,” Mr Netanyahu told cheering sup-porters, after lighting candles at a Han-nukah ceremony in Tel Aviv. “A yearago, before even opening the investiga-tions . . . they decided what the out-come would be and leaked their conclu-sions.”

For Mr Netanyahu, a consummatepolitical survivor, the next few monthslook perilous. His coalition is close tocollapse, his freedom is under threatand his reputation under assault. If he isworried, itdidnotshowonSunday.

As the crowd cheered, Mr Netanyahudismissed the investigations — con-ducted by Roni Alsheikh, outgoingpolice chief — as undemocratic. Hevowed that the next commissionerwould have to “restore” the public’strust inthepolice.

Allies in his Likud party called theinvestigation a “coup”. On Sunday, MrNetanyahu put out a Facebook videomocking the police for their decision toinvestigatehim.

His response melded together thevarious strains of politics that havecome to define rightwing Israeli govern-ments: a suspicion that a liberal deepstate colludes with a pliant, leftwingmedia to topple conservative leaders, amajoritarian streak that championselectoral victories as sufficient rejectionof allegations of corruption, and anabiding fear that without a rightwingleader at its helm, Israel is at the mercyof itsbelligerentArabneighbours.

MrNetanyahuneededtoact fast—hisgovernment has been close to collapsesince his defence minister quit in

November, alleging the prime ministerhad been soft on Islamist group Hamas.Elections are due by next November —but with a single seat majority since theresignation, Mr Netanyahu’s coalition isfragile.

“He has no option but to fight hard —everything is at risk,” said one person who previously worked with Mr Netan-yahu, who asked for anonymity becausehe had himself been questioned bypolice in one of the investigations. “Hehas to bring all his power, all his skill, allhis connections — and at the same time,he has to make it seem effortless. Thiscouldbeamortalwound.”

The police investigations, the last ofwhich wrapped up on Sunday, allegethat Mr Netanyahu took $300,000 inchampagne and cigars from friends forwhom he had done political and per-sonal favours.

Police also allege that Mr Netanyahuand his staff tried to broker a deal with a

newspaper for favourable coverage inexchange for regulatory favours, andthat he made a deal with news portalWalla for positive stories, while smooth-ing a merger between Bezeq, its parentcompany, and a cable television rival.MrNetanyahuhasdeniedanywrongdo-ing.

In all three cases, police recom-mended that the attorney-general, apolitical appointee, indict Mr Netan-yahu. It has opened an area of constitu-tional uncertainty: can Mr Netanyahuserve as prime minister while defendinghimself in court? The possibility that hecould be forced by public pressure andcoalition infighting tostepdownhasrat-tled insiders, according to two peoplewho work with Likud members of par-liament.

“He has to fight this with the weight ofthe office behind him,” said one high-ranking Likud party executive. “He hasto have the cabinet behind him, he hasto be photographed in the White House,hehastobecompletely incharge.”

JOSEPH COTTERILL — JOHANNESBURG

South Africa yesterday suffered a fifthday of scheduled power blackouts asthe state electricity monopoly tookaction to prevent a collapse of thenational grid, worsening a crisis forPresidentCyrilRamaphosa.

Eskom, the utility that generates nearlyall the power for Africa’s most industr-ialised economy, said it was imposingthe phased shutdowns because “anumber of generating units” were “stilloutofserviceduetobreakdowns”.

The strain on Eskom’s power stations,saidtobeexacerbatedbycoalshortages,has alarmed industry because it isoccurring in summer when demand islow. The unreliability of the power sup-plied to businesses has also called intoquestion Mr Ramaphosa’s pledge torevive investment intheeconomy.

So-called load-shedding is seen as alast resort to prevent total collapse ofthe grid, but the latest bout is likelyto depress economic activity as SouthAfrica struggles to emerge fromrecession.

“Political meddling at Eskom hasbasicallyrendered itahopeless strategicasset that holds the whole country toransom,” said Ronald Chauke of theOrganisation Undoing Tax Abuse, ananti-graftnon-governmentalbody.

Mr Ramaphosa launched an overhaulof Eskom after replacing Jacob Zuma,under whose presidency the utility wasabywordforcorruptionandwaste.

The reforms, which included thereplacement of the utility’s board, havestruggled to control Eskom’s debts ofmore than R400bn ($29bn), whichimperil public finances as they aremostlystate-guaranteed.

Israel

Netanyahu comes out fightingagainst bribery allegations

Electricity crisis

Fifth day of power cuts hits S Africa

BenjaminNetanyahu:dismissed theinvestigationsagainst him asundemocratic



DECEMBER 4 2018 Section:Ad Page Time: 3/12/2018 - 12:36 User: william.baxter Page Name: AD EQUINOR, Part,Page,Edition: LON, 9, 1


Agony and ecstasy: Rennie Harris’s‘Lazarus’ ranges from nightmarishto exhilarating — Paul Kolnik

Fearless:CristinaPasaroiuand DanielJohannson in‘Les Contesd’Hoffmann’

ARTS

Hugo Shirley

Nothing is ever quite what it seems inOffenbach’s Les Contes d’Hoffmann. Aftera lifetime of producing frothy operettas,the French composer set out in his finalwork to show his more seriousside. Multi-layered, meta, awash withliterary references and full of unex-pected twists and turns, this “opérafantastique” imagines three ghoulishepisodes from the Romantic writerE.T.A Hoffmann’s love life, which herelives accompanied by his muse and adevilishadversary.

Not everything was as it seemed at theDeutsche Oper, either. Laurent Pelly’sstaging, billed as the house’s final newproduction of the year, dates back to2005 and has already been seen in threeco-producing theatres. It employs anunusuallyfullversionofthescore,whichwas left with numerous loose ends atOffenbach’s death, and is bolstered byadditional dialogue. At nearly fourhours, including a couple of intervals, itallmakesforalongevening.Andanyoneexpectingaproductiontomatchthefan-tastical imaginings of Hoffmann’s mindwillultimatelyfeelshort-changed.

Chantal Thomas’s designs present aningeniousarrayof flats,panelsandstair-cases that can be moved fluidly, and

there are some nice touches. Olympia,the automaton at the heart of Hoff-mann’s first tale, floats about on a boombefore taking to roller skates. The cho-rus appear out of the dark like so manybubbles as they sing their openingnumber about the pleasures of beer. Buttheeffervescenceprovesshortlived.Col-ourful ideas crop up unexpectedly buttoo rarely, splashed only intermittentlyagainst a default background of darkemptiness. And, with Hoffmann himselfcast as unusually morose and depres-sive, itall feels fatallyshortoncharm.

Daniel Johansson cuts an impres-sively tall and handsome figure inthe title role, but his steely tenor lacksgraceandlightness.AlexEspositosnarlsand scowls with relish as the various vil-lains but could savour the text more.Irene Roberts’s beguiling Muse offersone of the evening’s few moments of

tenderness when, in the raucous epi-logue, she invites Hoffmann to leave hisheartbreak behind and let it inspire hispoeticendeavours.

The star of the evening, though, isundoubtedly Cristina Pasaroiu, embod-ying all of Hoffmann’s loves. She pingsout Olympia’s top notes fearlessly, isspirited as the Venetian courtesan Giuli-etta and finds moving lyrical warmth asthe tragic Antonia, condemned to singherself to death. Among the smallerroles, JamesPlattstandsoutasAntonia’spathetic father,Crespel.

The orchestra plays stylishly, andEnrique Mazzola, a regular for Frenchrepertoire at the Deutsche Oper now,conducts with plenty of thrust andverve. But it isn’t always enough to lift avintageproductionshortonfizz.

To January 12, deutscheoperberlin.de

Soprano shines amid Romantic gloomOPERA

Les Contes d’HoffmannDeutsche Oper, Berlinaaaee

Laura Cappelle

There’s something ironic about popularstreet protests preventing perform-ances marking the 70th anniversary ofthe Universal Declaration of HumanRights from going ahead. As the giletsjaunes, named after their high-visibilitymotorists’ jackets, clashedwithpolice inParis, the Théâtre National de Chaillot—not far fromtheaction—wasforcedtoclose itsdoorsovertheweekend.

The timing was unlucky for the Chail-lot, which had just inaugurated a festivalcalledTousHumains.In1948thetheatrewasthevenuefortheadoptionbytheUNof the Universal Declaration of Human

Rights; current director Didier Des-champs decided to celebrate the anni-versarywithaseriesofnewdanceworks.

Lia Rodrigues’s Fúria was cancelled atthe height of the gilets jaunes unrest onSaturday, but Paysage d’ensemble, on theChaillot’s main stage, went ahead onSunday. Created by choreographerAnnabelle Bonnéry and countertenorSerge Kakudji, it is at its core a commu-nity project that came out of a govern-ment plan to pair arts institutions withimpoverished “priority security zones”in greater Paris. The Chaillot signed upin 2015 with working-class neighbour-hoodLaGoutted’Or.

Bonnéry and Kakudji worked withlocal residents of all ages for three years,and included more than 110 amateurperformers in the final production.Three professional dancers and a fewmusicians were on hand to help, andsome early scenes channelled the ama-teurs’ individual qualities into quasi-

Tanztheater: the choreography gentlyhighlightedeverydaygestures—playingwith one’s hair, baring a shoulder —without making them look forced. Nev-ertheless, Paysage d’ensemble oftenthreatened to lose momentum. Kakudjiwas one of the highlights: he sang andconductedtirelessly throughout.

One detail was surprising: in most agegroups onstage, there were just a hand-ful of black amateurs. That seemsinconsistent with the make-up of LaGoutte d’Or, one of the most diverseneighbourhoods in Paris, which hasbeennicknamed“LittleAfrica”.

Bonnéry and Kakudji clearly strovefor a multicultural production andachieved it in other ways, but if even aproject like this one can’t bring morevisible diversity to the Chaillot stage,whathope is there forbetterrepresenta-tionamongprofessionalperformers?

theatre-chaillot.fr

DANCE

Paysage d’ensembleThéâtre National de Chaillot, Parisaaaee

Apollinaire Scherr

In Lazarus — the stunning finale to Ren-nie Harris’s dark trilogy for the Aileycompany — a cluster of dancers swayson their toes, heads cocked as if theirneckshadbeenbrokenbyhanging.Oth-ers roll forward like corpses carriedaway on the tide. In a recurring motifthat evokes the Pietà, one person gentlydrags another, collapsed in his arms,across the stage. This is the “strangefruit” of African-American history.Whenthedancerspray, theyshaketheirclasped hands like gamblers desperatefora luckyroll.

Ailey repertory may regularly tell itlike it is — or like it has been — but thedances usually signal early on that reliefis on the way. Though the one-hourLazarus finds salvation after intermis-sion, its first astringent act dwells in aliving hell with no hint of exit. Thedance’s structure is still more atypicalfor the troupe. Gorgeously unhurried,the 15-person piece proceeds accordingto the intuitive logic of a nightmare — inisolated shards untethered to dramaticimperative. This auspiciously bold pre-miere for Alvin Ailey American DanceTheater’s 60th anniversary doesn’t evenhave a consistent beat to hold it together— a common enough lack in postmod-ern dance but not at this musicallydrivencompany.

Darrin Ross’s soundscape servemore as setting than music. Consump-tive breathing and a heartbeat’s insist-ent thump sets Lazarus inside thepoor man’s ailing body. The snatches offield and praise songs, contemporary acappella folk and unctuous spokenword emphasise the wind tunnel ofthe throat and the friction of tongueagainst teeth and lips. We mustbe in the belly. Lighting designerJames Clotfelter forgoes the look of nat-ural light for the ominous beam of apolicepatrol.

How to stay one step ahead of deathDANCE

LazarusCity Center, New Yorkaaaae

Richard Fairman

Be grateful for small mercies.When this Carmen turned upin London earlier this year itcame filled out with a lot ofthe music discarded aroundthe time of the opera’s unsuc-cessful premiere. There areusuallyreasonswhymaterialgets ditched and this produc-tion showed why. The open-ingactseemedinterminable.

Now the show is back forits first revival. Most ofthe extraneous music hasbeen removed (why not thelast unwanted gobbets?) andthe performance ends about30 minutes earlier, for whichmany thanks. But thisCarmen remains a “show” inthe shallowest meaning oftheword.

A Barrie Kosky productionis nothing if not ostentatious.At Glyndebourne, his stagingof Handel’s oratorio Sauloffered an exhilarating glutof gaudy, imaginativeimages. His Carmen is ahyped-up night out at thecabaret, which largely junksBizet’s settings and charac-ters in favour of a song-and-dance evening that isexhausting in its hollow piz-zazz. There is little scope forcreating emotion or anysense of mounting tension or

drama. By the time the cho-rus embarks on its ump-teenth display of grimacing,hand-twirling and high-kick-ing, one is starting to lose thewill to live.

The new cast makes thebest of it. Gaëlle Arquez is anelegant, expressive Carmen,who sings with a nicely flexi-ble voice and models theshow’s costumes, from torea-dor to gorilla outfit, as if theywere made for her. BrianJagde’s burly Don José is notan especially good matchand his singing powers aheadas if he is in a traditional, ver-ismo-style production. Per-haps this Don José shouldhave settled down withMicaëla after all, as EleonoraBuratto is more feisty thanusual, strong and bright oftone rather than limpidlyaffecting.AsEscamillo,Alex-ander Vinogradov brings aflourish to the toreador’ssong, albeit with a ratherRussianbasssound.

From time to time each ofthem comes adrift from theorchestra, usually becausethe conductor, Keri-LynnWilson, is holding the speedsback, and the singers findthemselves out in front. Atleast the Royal Opera chorusis on lusty form, pumped upperhaps by Kosky’s high-en-ergy routines. If you wouldrather spend an evening at acamp nightclub than anopera, this could be the showforyou.

To December 22, roh.org.uk

OPERA

CarmenRoyal Opera House, Londonaaeee

Only when Ross lays down a beatdoes the 54-year-old Harris’s idiomcome into play. Hip-hop, ie culture,turns out to be the way out of the bellyof tragichistory.WhenHarris succumbsto Ailey uplift, it is in typical Ailey fash-ion: redemption is dancing, specificallywithothers.

From his vast knowledge of hip-hopand its precursors, the Philadelphianative has chosen for Lazarus’s founda-tion a restless, speedy rhythm-house:wending, grapevine steps, rolling cha-cha hips, jitterbugging feet, and lowerlegs flung forward as in Irish step-

dancing. For Ailey’s extraordinarytroupers, he has fashioned a maze ofvintage steps more exhilaratingly com-plex than anything you’ll find onYouTube or on the streets. The audiencegoescrazy—finallysomethingtowhoopandwhistleover.

Yet look closely and you will see in theinfectious moves traces of the agonisingearly steps. Speaking in code, theydivulge why, once risen, every Lazarusmustkeepmoving—orgrooving.

To December 30; alvinailey.orgnycitycenter.org

THE LIFEOF A SONGEverybody KnowsLeonard Cohen’s vision of asociety rotten to its corehas yielded some surprisingcover versions

ft.com/arts

Expressive:Gaëlle Arquezas CarmenBill Cooper

DECEMBER 4 2018 Section:Features Time: 3/12/2018 - 18:45 User: keith.allen Page Name: ARTS LON, Part,Page,Edition: LON, 10, 1


FT BIG READ. CHINA

Having long brushed off concerns over Beijing’s influence, the Hong Kong business community fears thatChina’s efforts to silence critics, overrule courts and put pressure on the media is undermining rule of law.

By Ben Bland

political objectives”. She says it is sup-porters of Occupy and those calling forindependence from China who areundermining political stability. “Therule of law is the spirit to follow the law,respect the law and uphold the suprem-acyof law,”sheadds.

Her comments echo Beijing and HongKong officials, who have rejected theexpanding chorus of criticism, includ-ing from previously reticent interna-tional business chambers in Hong Kongandforeigngovernments.

Hong Kong’s department of justicesays “it is misconceived to think thatupholding national unity and territoryintegrity iscontrarytotheruleof law”. Itadded that “the rule of law is ingrainedin our daily lives . . . including in thewaybusiness isconducted”.

Biggerbattles lieaheadSome businesses continue to believethey can thrive despite pressure fromBeijing. “I’m not that happy about thegrowing mainland influence but there’snot much we can do about it,” says oneexecutiveataHongKongconglomerate.“We still see many opportunities inHongKongregardlessofpolitics.”

But others are urging the governmenttoreversecoursebefore it is too late.

“We’re not at the point where peopleare pulling out,” says Ms Joseph of theAmerican Chamber of Commerce.“What would it take? It might take peo-ple feeling their data are being taken orreviewed or a sense that it’s not an evenplaying field in terms of western versusmainlandbusinesses.”

In a recent valedictory speech, retir-ing senior judge Robert Tang warned ofthe wider battle ahead, calling for thepublic to defend the rule of law so “itcannotbetakenfromuseasily”.

“Makeyourvoiceheardandyourvotecount,” he urged Hong Kongers.“Believe me, the price of freedom isindeedeternalvigilance.”

Additional reporting by Nicolle Liu inHong Kong

An experiment under strain

Although many Hong Kong mediaoutlets are controlled by tycoons withChinese business interests, includingthe Alibaba-owned South ChinaMorning Post, local journalists havelong chafed against any restraints.

But resistance is getting tougher, asthe authorities shift from a strategy ofco-opting media owners to more overtefforts to influence coverage.

Francis Lee, a journalismprofessor at the ChineseUniversity of Hong Kong,says the “basic game ischanging”, with the localgovernment and Beijing“no longer so afraid ofdirectly intervening”.

He cites a recent meetingin Beijing, where theCommunist party’s propagandachief warned a delegation of HongKong editors not to let foreign forcesturn the city into a base for thesubversion of the mainland.

Hong Kong journalists say theyoften come under pressure fromeditors to drop stories that wouldupset Beijing, or simply refrain frompitching them in the first place.

In the arts world, too, there has beena growing number of incidents whereorganisers fearful of angering the

Free pressRoom forcriticism isshrinking,reporterswarn

W hen Chinese agentsabducted a booksellercritical of Beijing and apolitically connectedtycoon from semi-

autonomous Hong Kong, many foreigninvestors said privately that they werethorns inBeijing’s side.

As the Hong Kong government ratch-eted up the pressure on the city’sdemocracy movement, prosecutingactivists, blocking opposition politi-cians fromrunning inelectionsandban-ning a political party, investors saidlocalpoliticsdidnotaffectbusiness.

Corporate executives have looked theother way as Beijing has emphasised its“comprehensive jurisdiction” overHong Kong, reversing the self-restraintthat marked the early years of the “onecountry, two systems” arrangement,under which China granted the city a“high degree of autonomy” and civicfreedoms for 50 years after the Britishhandeditbackin1997.

But the Hong Kong government’sdecision to in effect expel Victor Mallet,the Asia news editor for the FinancialTimes, has pushed some representa-tives of the international business com-munity to confront the growing threatsto Hong Kong’s rule of law, the corner-stone of the city’s success as a globalfinancialcentre.

“As the issues mount up, it’s gettingmore difficult to sweep them under thecarpet,” says Tara Joseph, president ofthe American Chamber of Commerce inHong Kong. “The free flow of data andinformation is absolutely crucial to the

reputation of this financial market.”The government declined to renew

Mr Mallet’s work visa — and thenrefused to let him enter the city inNovember— afterhehostedatalkat thecity’s Foreign Correspondents’ Club byAndy Chan, an advocate of the city’sindependence whose Hong KongNational party was subsequentlybanned.

Charles Mok, a former IT executivewho represents the sector in HongKong’s partially democratic LegislativeCouncil, says investors have beenshaken by the decision. “Previouslywhen I went abroad to promote invest-ment, people asked me whether theycould make money, but now they areasking about freedom of expression andruleof law-relatedproblems,”hesays.

Hong Kong is much less important toBeijing in terms of economic outputthan it was in 1997, with its gross domes-tic product equivalent to just 3 per centof China’s, compared with nearly 20 percent at the handover. But it remains akey financial centre, for foreign moneycoming in to China and, increasingly, forChinesecapitalgoingout.

With the Hong Kong governmentunder pressure from President Xi Jin-ping to curb opposition to Beijing’s rule,legal experts say investors — and thegovernment — should be much moreconcerned about the erosion of the city’sfreedomsandautonomy.

If Beijing’s influence continues togrow in the medium term, Hong Kongrisks losing its preferential access to glo-bal markets, which is premised on themaintenance of the promised “highdegreeofautonomy”.

“The situation is very serious,” saysHo-fung Hung, a professor of Chinesepolitical economy at Johns HopkinsUniversity, warning that Hong Kongrisks being hurt by the deteriorating US-China relations. “Western governmentscan no longer pretend that Hong KonghasgenuineautonomyfromBeijing.”

SeparationanxietyHong Kong’s one country, two systemsarrangement, as it was christened byformerChinese leaderDengXiaoping, isa unique political experiment, to see if acity with many political freedoms cansurvive and prosper inside the world’smostpowerfulauthoritarianstate.

A political compromise between theUK and China, it is ridden with conflictsandcontradictions.

Hong Kong’s Basic Law, the city’smini-constitution, guarantees civicrights and judicial independence andostensibly limits Beijing’s role todefence and foreign affairs. But it alsorequires the Hong Kong government toimplement “directives” issued by Bei-jing, to enact laws to prohibit “treason,secession, sedition and subversion”[which it has yet to do] and gives Beijingthe power to overrule Hong Kong’sjudgesbyissuing“interpretations”.

Jasper Tsang, a former LegislativeCouncil president, says the arrange-ment relies on “mutual understanding”between the Chinese government andHong Kongers. But Mr Tsang, who is one

separatism—whether inTibet,XinjiangorHongKong—asa fundamental threattotheparty’s legitimacy.

On a rare visit last year to celebrate 20years since the handover, Mr Xi warnedHong Kongers not to cross a “red line”by “endangering China’s sovereigntyand security” or “challenging the powerof thecentralgovernment”.

“We’re under a lot of pressure fromBeijing,” says one Hong Kong govern-ment official. “Unless we can show thatwe’re tackling the independence issue,the pressure on Hong Kong will con-tinueto increase.”

‘Antiruleof law’Philip Dykes, chairman of the HongKong Bar Association, the city’s regula-tory body for barristers, fears that theruleof lawisstarting to fallvictimtothispolitical crackdown. He argues Mr Xi’s“red line” is a vague, catch-all term thatcan be used arbitrarily against dissent-ers. “Youwillknowwhenyou’vecrossedit,evenifyoucan’t see it,”hesays.

The media and business communitieswere caught off guard by the unprece-dented decision involving Mr Mallet,the first time a foreign journalist hasbeendeniedavisasincethehandover.

Activists say the incident is a less seri-ous blot on Hong Kong’s record than theabductionofbooksellerLeeBo, whodis-

appeared in 2015, and tycoon Xiao Jian-hua, who was taken from a Hong Konghotel in 2017 and is believed to be in cus-tody in Shanghai. Nor is it as grave, theysay, as the Hong Kong government’s useof vague colonial laws and creativeadministrative measures to weaken thedemocracymovement.

But western diplomats say they weredisturbed by the expulsion of Mr Malletbecause of the capricious nature of thedecision and the use of a repressive toolstraight out of Beijing’s playbook, whichsuggests that Hong Kong is slowlybecoming likeanyotherChinesecity.

The Hong Kong government hasrefused to give its reasons for in effectexpelling Mr Mallet, although pro-Beijing politicians and Chinese statemedia have linked the decision to hishosting of the talk by Mr Chan. Hechaired the event in August in his capac-ity as the acting president of the FCC,which has a long history of hosting dis-cussions with political figures, includingseniorHongKongandChineseofficials.

In a climate of “increasing pressure”on one country, two systems, MarkField, the UK’s minister for Asia, warnsthat incidents such as the visa denial forMr Mallet “will affect business confi-dence inHongKong”.

Analysts at investment banks in HongKong are already reluctant to criticisethe Chinese government or Chinesestate-owned companies for fear of gov-ernment retribution, according to theheadofresearchforoneglobalbank.

These concerns about freedom ofspeech have compounded deeper fearsabout “mainlandisation”, as oppositionpoliticianscall it.

Legal experts are particularlyunnerved by Beijing’s willingness to useits constitutional power to overruleHong Kong’s independent legal system.In one case in 2016, Beijing required theremoval of legislative councillorsdeemed disloyal and last year itdeclared that part of a new high-speedrail station in the heart of Hong Kongwas mainland territory that would beguardedbyChinese lawenforcement.

“It’s the epitome of anti-rule of law tohave decrees from a dictatorship infil-trating our legal system,” says MarkDaly, a human rights lawyer who isdefending Mr Chan in his appeal againstthe prohibition of the HKNP. “There’snoself-restraintbyBeijing.”

Eric Cheung, a law lecturer at theUniversity of Hong Kong, puts it morestarkly. “We are shifting from rule of lawto rule by law,” he says. “Now whatBeijingsays is the law.”

Priscilla Leung, a pro-Beijing legisla-tive councillor and a barrister, dismissesthis critique, arguing that democracyactivistsare tryingtoturntheruleof lawintoa“slogan” inorder to“fight for their

authorities have cancelled moviescreenings, talks and projects thatwould once have raised few eyebrows.

The Hong Kong JournalistsAssociation, which represents localreporters, warned last month that the“death knell” for freedom of speech inHong Kong has sounded.

“Freedom of expression, ofpublication and of the press are

fundamental factors to HongKong’s success,” it said in a

statement. “If voicescritical of Beijing’spolicies cannot betolerated today, who isto say when a report

forecasting a devaluationof [the] renminbi will be

disappeared?”Some analysts say that Beijing

wants Hong Kong to mimic Singapore,where speech and the media aretightly controlled but business thrives.

But Mark Clifford, executive directorof the Asia Business Council, a think-tank in Hong Kong, argues that, unlikeSingapore, free speech and a vibrantmedia scene have been vital to HongKong’s prosperity over the years.

“Hong Kong has a tradition offreedom,” he says. “We’re different. It’salways been a very political city.”

of Beijing’s most prominent supportersin Hong Kong, argues that pragmaticconsensus has fallen apart over the pastfewyearsasBeijingandHongKonghavebecomelockedina“viciouscircle”.

“On the one hand, Hong Kong peopleseem to feel that the central govern-ment is now tightening up its control,taking away the room for manoeuvrewhich was given to Hong Kong peopleduring the early years after the hando-ver,”hesays.“Ontheotherhand,Beijingseems to become more and more wor-ried about Hong Kong independenceand about the alienated, hostile attitudeof young people in Hong Kong towardsthecentralgovernment.”

Joshua Wong, a 22-year-old studentactivist who was jailed for his part in thepro-democracy Occupy protests of2014, argues that “as long as PresidentXi leads China, there is no chance fordemocracy inHongKong”.

That sentiment has driven a growingnumber of young people to turn theirbacks on China. In citywide elections in2016, about one in five Hong Kongersvoted for candidates who supportedself-determination or independence.Opinion polls have shown that backingfor independence tends to be evenstrongeramongyoungpeople.

This trend has alarmed China’s Com-munist party leadership, which sees

Independenceactivist WayneChan is removedby policeoutside HongKong’s ForeignCorrespondents’Club in AugustPhilip Fong/AFP/Getty Images

Unique system Hong Kong has thrivedas a relatively liberal outpost within anauthoritarian country

Pressure builds Some business groupsbelieve that interference from Beijingcould damage the city’s economy

Alienated youth Beijing is worriedabout growing support among youngadults for independence in Hong Kong

Victor Mallet, Asianews editor of theFinancial Times,with Andy Chan, anadvocate of HongKong independence

‘We’re not atthe pointwhere peopleare pullingout. It mighttake peoplefeeling theirdata are beingtaken orreviewed or asense that it’snot an evenplaying field’

‘We’re undera lot ofpressurefrom Beijing.Unless wecan showthat we’retackling theindependenceissue, thepressure onHong Kongwill continueto increase’

Chinesepresident XiJinping on a visitto Hong Konglast year, withthen chiefexecutiveCY Leung, left,and hissuccessorCarrie Lam

DECEMBER 4 2018 Section:Features Time: 3/12/2018 - 18:17 User: alistair.hayes Page Name: BIG PAGE, Part,Page,Edition: LON, 11, 1


Letters

TUESDAY 4 DECEMBER 2018

Email: [email protected] daytime telephone number and full address

Corrections: [email protected] you are not satisfied with the FT’s response to your complaint, you can appealto the FT Editorial Complaints Commissioner: [email protected]

The riots that have left the Arc de Tri-omphe daubed with graffiti and shop-fronts shattered in the most chicarrondissements of Paris constitute acrisis for President Emmanuel Macron.Anne Hidalgo, the city’s mayor, saysthe violence over the weekend by pro-testers ostensibly from the gilets jaunesmovement, which left at least 133injured in Paris alone, is the worst inthe centre of the capital since 1968. MrMacron’s responsecoulddeterminethefuturesuccessofhispresidency.

The challenge the young Frenchleader is confronting contains multiplecomplexities. One is that the protestmovement has been infiltrated by boththe far-left and the far-right, alongsidewreckers, or casseurs, only too happy tosmash things up and fight police. Yetmany of those who took part in demon-strations outside Paris — France’s inte-rior ministry estimates a little morethan 5,500 protesters were in the capi-tal, out of 163,000 nationwide — werenot extremists. Polls suggests a major-ity of French people are sympatheticwiththegilets jaunes’ grievances.

Another difficulty is that the policythat triggered the protests — raisingfuel taxes — is well-founded. Franceneeds to step up action to curb risingcarbon emissions. But the policy doesdisproportionately affect those on lowincomes, and town-dwellers and ruralpopulationsmostreliantoncars.Thesepopulations already feel their publicservices have been cut back even astheypaymoretax.Fuelpricesareoftenpolitically explosive, as Britain’s TonyBlair found when truck drivers block-adedpetrol stations in2000.

The protests follow mis-steps, more-over, that have left Mr Macron’s popu-larity ratings lower after 18 months inoffice than any recent predecessors.Pushing through pro-business meas-ures including an overhaul of wealthtaxes and a flat tax on dividends early

in his presidency made sense as a wayofencouraging investment.Butcomingbefore measures to ease the burden onthe lower-paid, they fuelled percep-tionsthat thepresident isoutof touch.

All this threatens to end Mr Macron’shope of breaking the cycle of the pastfew decades, where often vital reformsare derailed by industrial action orstreet protests. It happened with pre-mier Dominique de Villepin’s youthemployment law in 2006, scrappedafter student demonstrations. It hap-pened in 1995 with prime ministerAlain Juppé’s efforts to curb the budgetdeficit through public sector reforms,after a wave of general strikes. Theuprising Mr Macron is now facing is ona bigger scale than either of those twohistoricalprecedents.

The French protests have broaderresonance, too. They come six monthsbefore European Parliament electionsin which nationalist-populists hope tomake decisive gains. If this standardbearer for pro-European and liberaldemocratic values handles the currentsituation badly, it could fuel populisminFranceandacross thecontinent.

Mr Macron needs to balance a toughresponse to street violence — as thegilets jaunes prepare for new proteststhis weekend — with making clear he isheeding the complaints of the protestmovement. He should hold firm on hiscore fuel duty increases. But he shouldexpand efforts to mitigate their impacton the less well-off with targeted meas-ures that go beyond the €500m of con-cessions, including a car scrappagescheme,alreadyannounced.

Above all, he needs to rethink hiscommunication strategy, his tone andlanguage, to convince the broader elec-torate he is not merely a president forthe rich. Even for a man with MrMacron’s political skills, that will be achallenge. If he fails, however, hiswholeprojectwillbe indanger.

Success of president’s reform plans may hinge on response to protests

French riots could proveMacron’s biggest test

Not for the first time since DonaldTrumpwaselectedtotheWhiteHouse,his administration has declared thatjaw-jaw with China is better than war-war as far as trade conflict is con-cerned. Mr Trump’s much-anticipatedmeeting with President Xi Jinping overthe weekend led to a postponement ofplanned tariff increases on Chinesegoods and a pledge to work to lowertradetensions.

It sounds good. Since the beginningof Mr Trump’s presidency, the US-China conflict has threatened to dragthe whole world economy into a vortexof disruption. Anything that leads to apeacefulresolution iswelcome.

The deal announced by Mr Trumpand Mr Xi, if it holds, will be a relief.But a great deal of scepticism isrequired that a back-of-the-envelopedeal—whosemeaningthetwosidesarealready disputing — is likely to bridgesuch a huge gap. Ceasefires betweenthe two have been announced and rap-idly broken down before. In the mean-time, any companies dealing across thetwo economies can do little except waitand hope that their businesses remainintact, and prepare contingency plansif theagreementbreaksdown.

The mildly hopeful precedent forthis deal is the agreement struckbetween Mr Trump and Jean-ClaudeJuncker, the president of the EuropeanCommission, in July. The US agreed tosuspend its planned imposition of tar-iffs on European car exports in returnfor the two sides agreeing to discuss adeal to cut most industrial tariffs to nil,plus some warm words about Europebuying more soyabeans and liquefiednaturalgas fromtheUS.

China, which has imposed tariffs onmany agricultural imports from the US(including soyabeans), has signalledthat it could do similar. Unlike the EU,Chinese procurement is sufficientlycentralised and under government

control that itcanfulfil suchapromise.But although that may help Mr

Trump with one part of his domesticconstituency — aggrieved farm export-ers — his ambitions are far higher.Within 90 days, his administrationessentially wants China to have startedto dismantle the entire structure of itsgrowth model, including weak enforce-ment of intellectual property rights,forced transfer of technology, cyber-theft of commercial secrets and non-tariffbarriersagainst imports.

The likelihood of Beijing rapidly andgenuinely agreeing to wholesalechanges, let alone beginning to imple-ment them or even credibly commit-ting to do so, is very small. China’s post-meeting statement did not even men-tion the detailed list of reforms norindeed the 90-day deadline, focusinginstead on Washington’s postpone-ment of tariff increases. Mr Xi’s growthstrategy has turned away from market-based economics. Whatever pain freshAmerican tariffs inflict, he is highlyunlikely to delete his entire approachand start again with a market-basedmodel importedfromthewest.

The question is then whether MrTrump accepts some empty promises,plus an offer to take the US’s surplussoyabeans off its hands, just to declarevictory.Thatseemsmuchlessprobablethan with the deal with Brussels.Unlike the EU, which does not have alarge and formidably organised caucusof enemies in Washington and particu-larly within the administration, dislikeanddistrustofChinarundeep.

True, this agreement has delayedtariff increases. Yet the threat of themremains, prolonging the unpredictabil-ity that the US-China trade conflict hascreated for thousands of companiesand millions of households. If the dealbreaks down, the prospects for anypermanent negotiated peace willrecedefar intothedistance.

The chance that Beijing will rapidly adopt wholesale changes is small

The ceasefire over tradeis welcome but fragile

Pound has punched aboveits weight. Not any longerThe neat picture Conservative MP PritiPatel describes, of an independentnation striking its own deals, free fromall restrictions, might come true(“Britain should have no fear inpursuing a WTO Brexit”, FT.com,December 2). But it comes with a price.

Sterling, measured in euro, iscurrently 20 per cent lower than theaverage price for the past 20 years.Only in 8 per cent of the 250 monthssince 1998 has the price been lower.Why this weakness?

In the past 30 years the UK hasexperienced an unprecedentedadvantage as the gateway to the EU, inparticular for US companies and verymuch so for companies in the financesector. The language, the culture andthe legal system have made it thenatural harbour. The inflow of foreigndirect investment has been a growthengine. Therefore, the pound haspunched way above its weight. Thepeople in the UK have benefited.

Not so any longer. The gateway is onits way to being closed. FDI will dry up,and the currency market foresees this,dropping the pound to its more naturallevel against the euro, given theconstantly higher UK inflation and thenegative current account. The pictureMs Patel describes might come true,but it will be costly.Peter MalmqvistStockholm, Sweden

WTO option will make usless open to competitionPriti Patel’s argument in favour of tradeon World Trade Organization terms(“Britain should have no fear inpursuing a WTO Brexit”, FT.com,December 2) fails to address theproblem that this option would makethe UK economy substantially lessopen to competition, erecting barriersto nearly half of our trade. The UK’seconomic history of trade protectionbetween the 1930s and our EUmembership in the 1970s shows thatsuch reduced competition will beassociated with a long-run relativeeconomic decline.

Tariffs on trade are now lesssignificant than non-tariff barriers andcustoms checks. The average WTO(most favoured nation) tariff rate forthe UK would be about 3.2 per cent

once weighted by our trade, accordingto the Bank of England. By contrast,economic studies suggest that theequivalent impact of non-tariff barriersand customs checks almost double theeffect of tariffs. Just-in-time supplychains affecting aviation,pharmaceuticals, chemicals, food andcars will be disrupted at great and inmany cases terminal cost.

Ms Patel airily waves all this asideclaiming that WTO rules prohibit“arbitrary health and safetyinspections”. But the WTO does notregard checks for rules of origin orregulatory standards as arbitrary. If acountry wants to set its own regulatorystandards, rather than share theprocess of doing so as we do in the EU,it will inevitably impose border costs aseach side checks compliance.

In the short term, that process willcause chaos at pinch points such asDover-Calais through which so much ofour fresh food is imported. In the longterm, it will make Britain a lesscompetitive marketplace, and willexact a heavy economic cost.Christopher HuhneLondon EC1, UK

EU would exact a price forrenewed membershipThose lobbying for a secondreferendum in the hope that the UKmight remain in the EU arepresupposing that the EU might haveus back. British government advice isthat the invocation of Article 50 isirrevocable. The European Court ofJustice is currently considering itsposition in this respect.

There are powerful reasons for it tooto decide that it is irrevocable. In thatevent the motion at anotherreferendum would have to be betweenBrexiting and applying anew for EUmembership.

It should be obvious to Leavers andRemainers alike that the EU wouldexact the highest of prices for arenewed membership, and that thiscould not be clarified before any suchreferendum is held. Rejecting TheresaMay’s deal in the hope of a secondreferendum is therefore reckless, to putit mildly.Ben HabibChief Executive and Chief InvestmentOfficer,First Property Group,London SW1, UK

Issues surrounding Brexitwere fully aired last timePeter C Lamb is wrong (Letters,November 30): Gideon Rachman’sassessment that Theresa May’s deal is anecessary “pragmatic compromise”,worthy of conditional support, is spoton. Even if a new referendum shouldreturn a different verdict, it seemsdoubtful that the EU27 will allow areturn to the status quo ante.

The issues surrounding Brexit hadbeen fully aired last time around, evenif accompanied by misinformedpropaganda on the Leave side, andoverstatement about the short-termconsequences of withdrawal on theRemain side. The emotional overloadaccompanying the first referendumwould likely be at least as great thesecond time. No, the only alternative tothe May deal at this juncture would befor Britain to crash out, which trulywould bring disaster.Albion M UrdankLos Angeles, CA, US

Europe was built on tradeso it’s not about to stopI was informed by our chief of staff,when I asked why he was taking aweekend break in Tallinn, Estonia, thatit has among the best preservedHanseatic League medievalarchitecture. It reminded me thattrading partnerships are as old ashuman history (“‘Hanseatic’ statesremain as one in EU big league”,November 27). The Roman empire’s

success was built on assimilation andprofitable trade, lifting many out ofabject poverty.

Europe was built on trade so it’s notabout to stop. Not even terrible warschanged that. Keep Brexit inperspective. I think prime ministerTheresa May’s deal is far from ideal,but it is better than self-servingpoliticians using parliament to furthertheir own careers. Either we have asecond referendum or we moveforward from what we have.

As a former soldier, I remember themilitary tactic of a phased withdrawal— it works. We do not need to naildown everything now. We do need astable platform to build from. The restwill evolve over the coming years anddecades. Can we have someperspective, national pride andhonour? Country comes first!Michael FerndalePartner — Board Practice,Stonehaven International,London SW1, UK

Restoration of the Englishmonarchy solved nothingGideon Rachman is right (“Eyes downand history books open for Brexitbingo”, December 1). For a comparableperiod of crippling division in Englishpolitics we do have to look back to our17th-century civil wars.

But 1660 solved nothing. Englandwas very fragile in domestic politicsthroughout its long crisis from the1620s until after 1688. By the time thecrisis ended, Scotland and Ireland werebound more closely to England, andGreat Britain was created in 1707.Brexit promises to achieve preciselythe reverse, breaking up Britain andending our 300 years’ interlude as amajor international power.Huw BrodieCardiff, UK

Corrections

c YoelHassonisamemberofparliament fromtheZionistUnion,notthegroupleaderaswronglystated inanarticleonDecember3.

c AletterpublishedonDecember3shouldhavestatedthat thetop20UKcompanieshave82percentmenintheirexecutiveteams,not8percent.Weapologise for theeditingerror.

‘He gets all his hugs at work’

David McWilliams’ article “The finalfrontier” (Life & Arts, December 1) is atimely alert to the demographic,economic and political trends grindingalmost inexorably towards a unitedIreland, regardless of Brexit. He wiselysuggests that alternative though far lesslikely developments, such as an EU-ordained special status for NorthernIreland within the United Kingdom(perversely ruled out by theDemocratic Unionist party andironically proposed by Sinn Féin),could conceivably create badly neededwealth through global inwardinvestment and perhaps maintain theconstitutional status quo.

What matters is that futureconstitutional uncertainty will, evenunacknowledged, increasinglydominate all the debates and createfertile ground for renewed tension andviolent conflict in Northern Ireland. Mr

McWilliams’ analysis is an additionalexplanation for the current andotherwise inexplicable impasse onpower-sharing between the DUP andSinn Féin. The underlying uncertaintyabout the fundamentals risks creatinganother generation of thousands offailed or destroyed lives in bothcommunities and renewed misery inAnglo-Irish relations.

Both governments have anoverwhelming duty to work together tocreate structures which will somehowreassure the two communities as thetipping points of demographic shiftscontinue to loom among the adultvoting population.

This challenge recalls conversationswith the late Taoiseach GarretFitzGerald at the time he concluded theAnglo-Irish Agreement of 1985 withMargaret Thatcher. Descended on oneside of his family from Northern

unionists and on the other fromSouthern republicans, he wasdistressed that neither he nor MrsThatcher could draw the unionistleadership into the negotiationswithout prompting the perennialunionist veto on any proposal beyondtheir own intransigence.

He took some comfort from thereasonable speculation that if andwhen in the future sovereignty overNorthern Ireland shifted from Londonto Dublin, as a result of the politicaldecision of a majority in NorthernIreland (and of course a likely thoughby no means guaranteed majoritydecision in the South), the structureshe had agreed with Mrs Thatcherwould through a variable geometrynecessarily reverse themselves.

Northern Ireland under Britishsovereignty under the Agreementinvolved the active role of Dublin as

active interventionists for thenationalist side. Under Irishsovereignty Britain would, in co-operation with Dublin, be obliged tosupport the unionists’ interests inAnglo-Irish interactions with asovereign all-Ireland Irish government.Other structures such as “jointauthority” (as opposed to “jointsovereignty”) which he hadunsuccessfully sponsored with MrsThacher could also be considered.

The Anglo-Irish Agreement, the“diktat” so detested by Ian Paisley andhis DUP and also opposed by Sinn Féin,might and hopefully would provide atemplate to maintain the involvementof Britain as guarantors of unionists’interests in a sovereign united Irelandand mitigate the unquestionably realdanger of civil conflict.Michael LillisDublin, Ireland

Irish governments’ overwhelming duty is to work together

In September 1957, federal troopswere sent to Little Rock, Arkansas, toprotect nine African-Americanteenagers who had been admitted toan all-white government high schoolafter a US Supreme Court order.

Until then, education acrosssouthern US states was raciallysegregated. But in a 1954 judgment,the court ruled the racial segregationof schools was unconstitutional andhad to stop. It took troops to protectthe first black students from mobs offurious white supremacists.

I was reminded recently of thistroubling chapter of my own country’shistory as I watched Indian newsreports of a 40-year-old woman andher terrified young daughter trying tobrave angry mobs to make thepilgrimage to Kerala’s Sabarimalatemple.

Women of child-bearing age — heldto be from 10 to 50 — have long beenprohibited from entering the temple,ostensibly to prevent the reigningdeity Lord Ayyappa, who is depictedas a celibate child, from beingdistracted from his meditations. Butthe ban is also a version of thewidespread Hindu custom ofdiscouraging menstruating womenfrom visiting temples, or participatingin religious ceremonies, due to thedeep-rooted belief that they areimpure and ritually unclean.

Such menstrual taboos run deep: insome rural Indian communities,women are banned from cookingfood, denied social contact andsometimes even forced to sleep in

barns or sheds, outside their mainhomes, during their periods.

India’s Supreme Court recentlyruled that the Sabarimala temple’sban on women of child-bearing ageviolates their constitutional right toequality, including their right toworship freely. The court said banningwomen was a form of the now illegalpractice of “untouchability”, rooted inthe belief that some people — typicallylower castes — are “ritually polluted”,leading to their stigmatisation andmarginalisation.

The court’s verdict demanding anend to a longstanding social customhas provoked outrage amongtraditionalists — both men andwomen. Mobs have gathered toprevent the women’s entry which,they say, will desecrate thetemple. Kerala’s communistgovernment has tried to protectwomen devotees seeking to visit themountaintop shrine but the mobshave gained the upper hand: nowoman has managed to get in.

National political parties havefanned the flames. Amit Shah,president of prime minister NarendraModi’s Bharatiya Janata party, hasvowed to “stand like a rock” withthose resisting the women’s entry andhas publicly lambasted the SupremeCourt for passing orders that he said“cannot be implemented”.

The Congress party, led by RahulGandhi, has wavered. Mr Gandhi sayshe believes women should be allowedto go anywhere but will defer to theparty’s Kerala workers, who oppose

women’s entry to Sabarimala and areorganising their own protests.

The active efforts of India’s rulingparty to stir violent resistance to theSupreme Court order has alarmedmany political analysts, who say thisdangerous precedent threatens tocorrode India’s weak rule of law andundermine its liberal constitutionalvalues.

The political mobilisation againstthe Sabarimala verdict, writes PratapBhanu Mehta, vice-chancellor of NewDelhi’s Ashoka University, is, “a full-throated mobilisation against theauthority of the court itself. It is anattempt to legitimise the idea that it isperfectly fine to resist any SupremeCourt judgment if one can make thatresistance wear the garb of faith.”

If the protesters succeed inthwarting the verdict and keepingwomen out of Sabarimala, he added,“it will lend credence to theproposition that any grammar ofanarchy is legitimate when it comes tomatters of religion . . .[and] preparethe ground for the idea that religion-based political mobilisation has a finalveto over any other constitutionalprinciple”.

As a diverse nation of people withdeeply conflicting views, India hasbenefited from its tradition of lookingto its Supreme Court to arbitratedisputes, guided by its progressiveconstitution. But today, the rule of lawfaces a mounting challenge from thepassions of faith.

[email protected]

Temple battlesreveal the riftbetween faithand law

New DelhiNotebook

by Amy Kazmin

DECEMBER 4 2018 Section:Features Time: 3/12/2018 - 18:37 User: alistair.hayes Page Name: LEADER, Part,Page,Edition: LON, 12, 1


Opinion

E very generation has onedefining issue which shapesits political outlook. It runsunder their world view likethe rivers beneath the rock,

shaping their politics whether they real-ise or not. For my parents’ generation itwas the war. For mine, it was the coldwar.Forourchildren, itwillbeBrexit.

To take the cold war: if you believed inthe Soviet threat, then a series of ideo-logical positions formed around you.You were pro-American, probably sup-ported the nuclear deterrent and werelikely to equate capitalism with free-dom. Those who thought the threatexaggerated were more likely to be anti-American, unilateralist and lessattached to the market. You might stillbe in the Labour party, but if you took

the Soviet threat seriously, you would beon the multilateralist, pro-Nato, and,importantly, pro-European wing. It wasthis divide which lay behind the Laboursplit and creation of the SDP in the1980s. If the underlying politics crystal-lises into a single issue, it can have unex-pectedconsequences.

It will be the same with Brexit. At apoint when it is hard to predict eventstwo weeks from now, it may seemstrange to be talking about decadesahead. But the referendum has creatednew sides which are going to endure andshapepolitics farbeyondEUmatters.

Voters feel their Brexit stance farmore keenly than any party allegiances.A recent study by the political scientistJohn Curtice showed that voters’ “Brexitidentity” far outweighs their party loy-alties — 77 per cent to 37 per cent. In anera where identity politics is increas-ingly dominant, whether you were aRemainer or a Leaver is likely to be themost significant defining badge for allwho were politically conscious duringthe referendum. This will stay true afterthe immediate conflict over Brexit hasended. Many assume that once Brexit is

settled politics will return to normal,but more likely the divisions and alle-giances created will play out in unantici-patedways.

In one scenario Labour and the Con-servatives effectively become theRemain and Leave parties, dividingBritish politics in much the same wayattitudes to partition defined Irish poli-tics longafter thecivilwar.

This could happen. Labour’s mem-bership is dominated by Remainers; theConservatives by Leavers. But one canalso see the tensions this creates. JeremyCorbyn, the Labour leader, has otherpriorities but is having to give ground ona second referendum because 86 percentofhismembershipwantone.

At Labour’s annual conference someof the loudest cheers were for Keir

Starmer, the shadow Brexit secretary,when he raised the prospect of a secondvote. He is no Corbynite, but in a futureleadership contest supposed moderatesmight find they have a platform becauseof the credibility won during the Brexitfights.

Remain and Leave have become sodeeply a part of political identity thatmany voters will not listen to those theylink with the opposite stance. Con-versely, if they trust Boris Johnson or SirKeir on Brexit, they are more likely totrust them on other social issues. Ifthose leaders say the BBC is dishonest,those who identify with them are likelyto echo that view. This cuts across partylines and in a time of political polarisa-tion, that matters. Our allegiances aresuch that if you identify as a Leaver orRemainer, you are far more likely toadopt other positions which accompanythatstatus.

This is a particular problem for theConservatives, because younger votersskew heavily towards Remain. They arealso more supportive of open borders,multilateral organisations and sociallyliberal values. By contrast, Leavers and

older voters are more inclined towardshardborders,protectionismandnation-alist values. A Tory party associatedwith Leave will have to work hard torecapture those supporters it was onceguaranteed by economic determinism.It may be forced to find new championswith clean hands on Brexit, and perhapspivot from the low-tax, small stateagenda associated with Leavers to amoreChristianDemocraticstance.

Brexit has created a major strand ofBritish pro-Europeanism which did notpreviously exist. If it goes ahead, a newcross-party movement will form to takethe UK back in. Its leaders will be Blair-ites and liberal Tories. This could coa-lesce intothenucleusofanewpartythatmay well form around them, and it willstart with the built-in support ofRemain identifiers.

If this seems a bit vague, that isbecause it is. But what is clear is that theBrexiteffectwill last longer thananyoneexpected. It is now a permanent aspectof our politics and we are nowhere closetograsping its full impact.

[email protected]

Remain and Leave are sucha part of voters’ identitiesthat many will not listen

to the opposing view C ancer is a moving target. Itsability to adapt to treatmentand develop resistance is thesingle biggest challenge inthe field and the reason why

the disease claims so many lives. Weneed a diverse toolbox of innovativedrugs that attack cancer in new waysandgetaheadof itsevolution.

Dramatic advances in our under-standing of cancer biology and geneticsare helping to deliver an era of precisioncancer treatment. The number of can-cer drugs being licensed by the Euro-pean Medicines Agency has doubled inless than a decade — and many of thesearenewpersonalisedtreatments.

One of the most rewarding momentsfor a cancer researcher is when you firstsee evidence from clinical trials thatpatients are benefiting from a treatmentyou helped to create. I have been luckyenough to experience that in my career,while working at GlaxoSmithKline onthe skin cancer drug dabrafenib. Scien-tists like me are in this business to makea difference to patients. Helping themlive longer with an improved quality oflife is incrediblymotivating.

But it is hugely frustrating for those ofus who work on the front lines of drugdevelopment to learn that a new Insti-tute of Cancer Research report shows itnow takes 14.1 years — more than a yearlonger on average than in the 2000s —for new treatments to reach the patientswhosodesperatelyneedthem.

And the exciting drugs that are finallylicensed and approved are not spreadequally. Between 2000 and 2016, nonew drugs were approved for cancers of

the brain, and there were only a handfulof new treatments for liver, ovarian andpancreatic cancers, which are some ofthe hardest forms to treat. Patientsbadlyneedfasterprogress.

Whyaren’tallcancerpatientsbenefit-ing fromprecisionmedicine?The incen-tive structures in science reward peoplewho publish research papers and gaingrant funding. So the community hastended to prioritise the more commoncancers. That must change. Academicresearchers like me take more risksthan pharma companies because we donot have to worry about making profits,but even we could do more to crack thetoughestcancertypes.

The ICR report shows that industry —which plays an essential role in bringingnew drugs to patients — is more riskaverse than it has ever been. Companiesprefer to invest in “me too” drugs thatare a safer bet because they are likely tooffer the same results as their successfulolder siblings. But existing classes ofdrugs only bring incremental benefits,and more of the same is not goodenough.

Drugmakers will not take risks if theregulators that license and approvemedicines fail to recognise the impor-tance of innovation when evaluatingthem. Drug companies stick to the triedand true when bringing products tomarket because regulation has not keptupwiththescience.

Much of the delay comes from settingup and running clinical trials. Withtreatments targeted to specific genes ormarkers in patients, trials should be get-ting smaller, smarter and cheaper. Butthat cannot happen until the EMA andthe UK’s National Institute for Healthand Care Excellence become more flexi-ble — and show a willingness to allow drugs on to the market based on earlierstudy end points, and smaller patientnumbers.

The drug development ecosystem hasto change. Academia and industry mustwork together to discover and developthe really innovative medicines that weneed for the cancers that are being leftbehind. Clinicians need to conductsmarter, smaller clinical trials aimed atshowing patient benefit earlier. Regula-tors must be flexible in responding toclinical data to usher through today’sexciting cancer treatments morequickly. In doing so, we will create an environment that incentivises andrewardstomorrow’s innovation.

Cancer won’t wait. Neither should we.

The writer is head of therapeutics biology atThe Institute of Cancer Research

Flexibility inapproving

cancer drugs willfoster innovation

OliviaRossanese

It now takes more thana year longer than in the

2000s for new treatmentsto reach patients

The Brexit divide will be politics’ new cold war

and powerful economy that plays littlepart in this Japanese initiative: SouthKorea. In theory, Seoul and Tokyo haveevery reason to work together. They areboth democracies, with a shared anxi-etyaboutbeingpushedaroundbyChinaand facing a common threat from NorthKorea. They are also both advancedeconomies confronted by similar socialissues, suchasanageingsociety.

But relations between the two coun-tries are terrible. The Japanese are out-raged by what they regard as a SouthKorean effort to reopen the question ofwartime reparations. Many in SouthKorea still accuse Japan of failing toacknowledge the evils of its colonialpast.

Despite the bitterness of this dispute,Japan and South Korea, east Asia’s mostimportant democracies, must find away to work together. Otherwise, theyhavelittlechanceof findingsomestrate-gic breathing room as they find them-selves pressed between the two giants ofChinaandtheUS.

[email protected]

growing Chinese navy haunts the imagi-nation of Tokyo policymakers, whoknow that their island economy reliesonopensea lanes.

So Tokyo is keen to nurture its inter-national ties — well beyond the US. TheAbe government’s major foreign initia-tive is an effort to build up an informalnetwork of the region’s leading democ-racies. The aspiration is to create a “freeand open Indo-Pacific”, with India andAustralia as key partners. They are bothfellow democracies and significanteconomies, potentially anchoring eitherendofavastregion.

Japan’s Indo-Pacific vision empha-sises not just development aid andinvestment — areas where China canoften outspend them — but also “thepromotion of fundamental values” suchas the rule of law, openness, free tradeandfreedomofnavigation.

Behind this slogan is a perception inTokyo that most nations in the Indo-Pa-cific region have little desire to live inthe shadow of an authoritarian China,andcould jointlypushback.

Yet there is one notable democracy

be a frustrating and alarming ally — andcontinues to hold the threat of tariffsover Japan as well as China. So the Japa-nese are beginning to hedge their bets.China is Japan’s largest trading partnerand as one Japanese diplomat notes:“Ourcompaniesarestillvery focusedonChina’s vast market.” If the Japanesegovernment can reduce tensions withBeijing, it will. In October, Mr Abe trav-elled to Beijing for his most friendlymeeting with President Xi Jinping sinceboth leaderscametopower in2012.

Nonetheless, the long-term assump-tion in Tokyo is that China remains thebiggest single threat to Japan’s securityand independence. The Abe govern-ment knows that the economic and mil-itary gap between Japan and China iswide — and getting wider. The rapidly

cans feel their leadership is threatened,they will react brutally.” Yet the sameofficial noted that China is in a strongerposition to challenge the US than Japanwas inthe1930s.

At the time of Pearl Harbor, Japan’seconomy was just 10 per cent of the sizeof America’s. By contrast, China’s econ-omy is now 60 per cent of the size of theUS economy. When measured by pur-chasing-power, it is larger.

These kinds of musings in Tokyo cre-ate fury in Beijing. The Chinese argue that there is no comparison betweentheir investment-led push into Asia — oreven their construction of militarybases in the South China Sea — with thebrutal Japanese military actions of the1930sand1940s.

Those lingering historical tensionsensure that Japan is much more than adisinterested observer of the growingrivalry between the US and China. Asthe third-largest economy in the world,a neighbour of China and a close ally ofthe US, Japan is central to the balance ofpower inAsia.

For Shinzo Abe, Japan’s prime minis-ter, a unifying theme of all his policies —foreign and domestic — is the effort toprepare his country to cope with anincreasingly powerful China. Mr Abecame to power in 2012, promising to bethe leaderwhowouldstanduptoBeijingover some disputed islands in the EastChinaSea.TheAbegovernmenthasalsoreinterpreted the Japanese constitutionto make it easier for its military forces tofightalongsideAmerica.

But US president Donald Trump can

F or Japanese officials, therecent Asia-Pacific EconomicCooperation summit in PapuaNew Guinea was a slightlyuncomfortable trip down

memory lane. The island of New Guineawas the scene of some of the most brutalfighting in the second world war andmore than 100,000 Japanese troopsdied there, in a struggle with the Ameri-cansandAustralians.

The Japanese delegation returned toTokyo with the strong feeling that thisobscure corner of the world is onceagain becoming the scene for a strugglebetween great powers. The Apec sum-mit coincided with an announcementthat Australia and the US are planningjointly to develop a naval base at Manusin Papua New Guinea — part of a cleareffort to push back against growing Chi-nese influence in the South Pacific. TheChinese themselves are heavy investorsin the region and have been rumouredtobeseekingamilitarybase.

The rising tensions between the USandChinaremindsomeJapanesestrate-gistsof the rivalrybetweenAmericaandJapan in the 1930s. One senior Japaneseofficial told me that: “The Chinese don’tyet understand that when the Ameri-

Japan struggleswith its rising

neighbour

For Abe, preparinghis nation to cope with

its powerful rival hasbecome a unifying theme

global affairs

Gideon Rachman

P residents Xi Jinping and Don-ald Trump reached an agree-ment at the G20 meeting inArgentina at the weekend ona framework for trade dia-

logue that will delay the previouslyannouncedimpositionofnewAmericantariffs on January 1. While surely betterthan the alternative, this step does notaddress any of the fundamental ten-sions in the economic relationshipbetweenUSandChina.

Few observers doubt that China needsto make significant changes in areassuch as intellectual property, rights offoreign investors and subsidies to state-owned companies if it is to meet inter-nationalnorms.

Antipathy towards Chinese economicpractices is hardly confined to Mr

Trump. Recent months have witnessedattacks on the existing economic rela-tionship from officials of previous USadministrations, noted China expertsand the American businesses. It is fair tosay there are no “panda huggers” left inWashington. When foreign govern-ments get past their frustrations withMr Trump, they too are frustrated withChinesecommercialpractices.

Yet it is easy to sympathise with Chi-nese leaders who insist that China’spolitical system is for it to choose, andthat economic negotiations shouldfocus on the pragmatic identification ofwin-win opportunities, rather than onquestionsof ideology.

But, at the same time, it is hard to seehow anyone with a modicum of histori-calknowledgecould fail tobeconcernedby a combination of increased domesticrepression, the centralisation of powerin one man, rapidly increased militaryspending and rhetoric about enlargingChina’srole intheworld.

What the US requires is a viable strat-egy for addressing its legitimate griev-ances. Unfortunately neither rage norproclamation constitutes such a strat-

egy.Aworkableapproachwould involvefeasible objectives clearly conveyed andsupported by carrots and sticks, alongwith a willingness to define and acceptsuccess.

At the heart of the US’s problem indefining an economic strategy towardsChina is the following awkward fact.SupposeChinahadbeenfullycompliantwith every trade and investment ruleand had been as open to the world as the

most open countries at its income level.China might have grown faster becauseit reformed more rapidly or it mighthave grown more slowly because ofreduced subsidies or more foreign com-petition. But it is highly unlikely that itsgrowth rate would have been altered byasmuchas1percentagepoint.

Equally, while some US companies

might earn more profits operating inChina and some job displacement inAmerican manufacturing due to Chi-nese state subsidies may have occurred,it cannot be argued seriously that unfairChinese trade practices have affectedUSgrowthbyeven0.1percentayear.

This is not to say that China is not athreat to the existing internationalorder. And for the US to lose its positionas the world’s largest economy, after acentury of dominance, would be a seis-mic event. If, as is plausible though notcertain, the US loses its lead over thenext decade in information technology,artificial intelligence and biotech, thetraumawillbemagnified.

Can the US imagine a global system in2050 in which its economy is half thesizeof theworld’s largest?Even ifwecanimagine it, could a political leaderacknowledge that reality in a way thatpermits negotiation over what such aworld would look like? While it might beunacceptable to the US to be surpassedin economic scale, does it have themeans to stop it? Can the US hold Chinadownwithout invitingconflict?

These are very hard questions with-

out obvious answers. But that is noexcuse for ignoring them to focus onlyon short-run frustrations. Chinaappears to be willing to accommodatethe US on a specific trade issue as long asthe US accepts its right to flourish andgrow, knowing that sheer weight ofnumbers will make it the world’s largesteconomybefore long.

That is a deal the US should take whileit can. It can bluster but cannot, in a glo-balisedeconomy,holdChinadown.Try-ing to do so risks strengthening the mostanti-Americanelements inBeijing.

Mr Trump, for all his failings, hasChina’s attention on economic issues ina way that eluded his predecessors. Thequestion iswhetherhewillbeable tousehis leverage to accomplish somethingimportant. That will depend on his abil-ity to convince the Chinese that the US iscapable of taking yes for an answer, andon his willingness to go beyond small-bore commercialism. We can hope butshouldnotholdourbreath.

The writer is Charles W Eliot university pro-fessor at Harvard and a former US Treasurysecretary

Trying to do sorisks strengthening the

most anti-Americanelements in Beijing

Washington may bluster but cannot hold China back

BUSINESS

LawrenceSummers

BRITAIN

RobertShrimsley

FT montage

DECEMBER 4 2018 Section:Features Time: 3/12/2018 - 17:45 User: sarah.provan Page Name: COMMENT, Part,Page,Edition: LON, 13, 1


“Hobbyland”, Emma Walmsley calledit. Big pharma companies have aweakness for wandering into areas ofdrug research and development thatprove pricey and unproductive. As thenew-ish CEO of GlaxoSmithKline, shewas determined to avoid Hobbyland’ssiren song. Yet she seems to havesuccumbed to it in buying Tesaro.

GSK announced yesterday it waspaying $5bn in cash for the biotechgroup whose key treatment targetsovarian cancer. Shares of GSK fell 8 percent, despite a crowd-pleasing andunrelated announcement of the $3.8bndivestiture of the Horlicks consumerbrand to Unilever.

The nominal premium implied byGSK’s Tesoro purchase is a steep 110per cent above the average price of thepast 30 days. Yet the purchase price isonly 40 per cent of Tesaro’s all-timehigh set in 2017. The biotech group’skey drug Zejula shows promise and isgenerating revenue. But it facescompetition from AstraZeneca, Merckand multiple biotech start-ups.

Through the first nine months of theyear, Tesaro generated $166m ofrevenue. The investment will diluteGSK’s profits. Its earning per sharetargets will be as much as a tenth lowerthan its previous forecast.

Numbers aside, shareholders areright to worry about GSK’s strategy. MsWalmsley comes from a background inconsumer health. However, she hasemphasised her commitment to GSK’spharma business. This has beenunderscored by the Horlicks sale.

The company justified the steeppurchase price by arguing Zejula andthe innovation underpinning it mightbenefit a broader population ofpatients. Moreover, by acquiring a hotbiotech start-up based near Boston,GSK immediately had credibility in abiotech hub. Shareholders resent suchsquishy reasons for spending $5bn ofshareholder money. Mr Walmsley’s betwill have to pay off handsomely. Or she

GlaxoSmithKline/Tesaro:hobby horse

may find herself with time to pursuehobbies of a kind more conventionalthan biotech investment.

There is no bidding war with only onebuyer. RPC shareholders hoping for anearly Christmas present via a takeoverapproach for the company may have tothink again.

Shares in the UK-listed plasticpackaging maker rose a fifth when itannounced in September that it was intalks with two private equity suitors,Bain Capital and Apollo GlobalManagement. Yesterday Bain formallyended its interest. Apollo has been

RPC Group:bottling it

granted another extension, untilDecember 21, to show its intention tomake a firm offer. The shares have lostall that bid premium, suggesting thatthe market thinks Apollo will walk too.

Even so, RPC seems cheap. UsingS&P Global data, RPC trades at anenterprise value of less than 7 times itsforward ebitda (a cash earningsmeasure), 30 per cent less than its UScompetitor Berry. And RPC has beengrowing fast. Revenues have more thantrebled over the past five years as itbought up companies such as Frenchbottle-top maker GCS and BritishPolythene Industries. RPC spent anaverage of over £400m per year onother companies.

There is the rub. Critics gripe thatRPC’s acquisitions mask weak earningsgrowth. The company rejects this, but

the accusation attracted short sellersthis year.

Buying RPC at current levels, andhalting the dividend and acquisitions,would deliver a cash yield of more than10 per cent, think optimistic analysts.That may look healthy, but not for abuyout group unless it can extractmore savings, which in turn couldincrease RPC’s value to a competitor.

If that is what Apollo plans, it is in astrong position. RPC shareholders arenervous about the accounting debate,share price volatility and negativepublicity about plastics. Three recentpackaging business transactionsoccurred at an average of 11.5 timesebitda, well above that of RPC.

Then again, Apollo looks more likelyto play Mr Scrooge than FatherChristmas for RPC shareholders.

A rummage is a hurried, untidy search— for coins down the back of a sofa, forexample. So the name ofRummage4Property, the latestchallenger to Rightmove, might proveuncomfortably apt. The profits of suchcontenders can look like small changecompared with the earnings of the UK’sdominant property website.

A tech billionaire would covetRightmove’s network advantage. Thisunderpins an underlying operatingmargin of 77 per cent. No wonder UKhousebuilders think there should bemore competition. A group includingthe largest, Persimmon, have signed upto list their properties for sale withRummage. So have estate agents suchas Countrywide.

A flat monthly fee of £100 lookscheap compared to Rightmove’s £800-£1,500 packages. Clients can pay a one-off £1,000 fee per branch to belong to amutual structure. This gives them avote on pricing and strategy.

The whizzy bit is how Rummage usestech to grab a foothold on pages ofsearch results for enquiries like “two-bed flat in Clapham”, albeit below paid-for links. While Rummage willgenerate fewer leads for vendors thanbig platforms, its founders argue thatthe conversion rate should be higher.

It is to be hoped that Rummage haslearnt from the mistakes ofOnTheMarket, which irked someclients with unpredictable pricing anda rule that agents could only list withone other portal.

Economic theory suggests that thebig margins of Rightmove should bewhittled down by entrants. So far,economic theory has proved to bebunk. Margins have risen.

Some economists see such profits asproof of a market failure. Rightmove’scustomers will meanwhile take anychance to put pressure on. Decentnumbers from OnTheMarket andfalling house prices have knockedRightmove’s forward earnings ratio to23 times, from 29 times in June. Thatlooks cheap. Agents can afford toignore Rummage, but not Rightmove.

UK property websites:Rightmove v brave move

The fog of war usually rolls awayduring a ceasefire. But the murksurrounding trade is too thick to bedispelled by a temporary trucebetween the US and China.

Shares in sectors such as cars andluxury goods jumped together in reliefthat tariffs will not rise on January 1.

Just as indiscriminate sell-offsprovide alluring buying opportunities,some of yesterday’s advances may beshortlived.

In principle, makers of cars, productsthat are traded heavily across borders,could gain the most from the easing oftensions. Donald Trump tweeted thatChina had agreed to lower tariffs on carimports, though Beijing has notconfirmed the measure.

If true, it would be a fillip forEurope’s manufacturers, which havebeen caught in the crossfire of the tradewar. BMW, which imported 100,000cars into China from the US in 2017,has said the tariffs could hit its 2018earnings by €300m. Returning thetariff to 15 per cent by January 1 mightpush up 2019 operating profits byabout 5 per cent, says Citi. Daimler’searnings might get a 4 per cent boost.

A de-escalation of trade tensionsmight boost the Chinese economy. Thatwould help car sales which, afterexpanding for almost three decades,stalled in July.

Luxury stocks jumped yesterday.French groups Kering and LVMHinitially climbed about 6 per cent, asimilar rise to Daimler and BMW. Yetthe impact of trade wars on this sectorhas differed greatly. Instead of boostingtariffs, China cut charges on luxurygoods in July. Jitters over the trade warand economy were slow to hit thesector. Confidence was hurt in Octoberwhen Louis Vuitton reported a “littleslowdown” in China consumer growth.Even so, luxury groups report thatmainland China demand is growing fast,lifted by the spending of youngsterswho, thanks to one-child policies, havenumerous, generous elders.

The biggest threat is that China andthe US fail to reach agreement in 90days, paving the way for a resumptionof hostilities. But the car industry hasadditional worries. These include therisk that Mr Trump will imposedamaging tariff rises on vehicles

China/US trade war:floreat lux

imported from the EU. That meanscarmakers’ shares could endure afurther shelling. The luxury sector isless exposed. If the ceasefire showssigns of lasting, its shares should be thefirst to rise out of the trenches.

CROSSWORDNo. 16,032 Set by JASON

JOTTER PAD

ACROSS 1 Judgment finds CO inside in

error (8) 5 Small survey sample (6)10 See one cracking obscure

codes with eccentricity (7)11 Country commonly said to be

empty (7)12 Grill German veggie (5)13 Carry On Monsieur is live

experience (9)14 Force applied differently in

pole position, say (5,2,5)18 Like something after dinner?

Port’s laid out and nap (12)21 Fancy iPhone old boy kept

boxed having a fear of novelty (9)

23 Old dreary bouquet (5)24 Publicly reveals antique

fetched a better price (7)25 Clarify former intention about

island (7)26 Salad ingredient is hot and

impressive at first (6)27 Petrol station wrapping

present of drink (8)DOWN 1 Draw two picking up diamonds

(6) 2 Church or a lovely cover of a

group song (6) 3 Jaguars might be caught in

this (5,4) 4 Not until I’m beyond caring

about marks on unknown stiff (4,2,4,4)

6 Get chancellor of the exchequer to pull a face (5)

7 Ne’er-do-well to leg it, hell for leather (8)

8 Henry, indeed, fellow always getting the sneezes? (3,5)

9 Bureau concerned with bloomers: briefs collected here (5,2,7)

15 Summit mostly cool about old thick fog (3-6)

16 Trade and immigration policy might make one poor daughter (4,4)

17 Diverse, like Dorset possibly (8)

19 Quagmire is again more or less behind (6)

20 Pair aware of prompt (6)22 Rings husband – damn, my

mistake (5)

Solution 16,031

Lex on the webFor notes on today’s breakingstories go to www.ft.com/lex

Twitter: @FTLex

One hopes Saudi ruler Mohammedbin Salman never takes up Jenga, aparlour game requiring balance. It isno more a pursuit for the maladroitthan is oil-based diplomacy.Hydrocarbon heft did not, after all,give the kingdom impunity to kill acritic abroad. And support fromRussia, whose reach is alsoextrajudicial and extraterritorial, hasbolstered Saudi leadership of Opecless than hoped. Qatar will quit Opec.This should worry the cartel when itmeets this week.

Qatar’s decision makes sense.Fellow members led by Saudi Arabiabullied it through the recent tradeblockade. Qatar’s influence in Opecwas modest even before that. Itscrude production is small by Gulf

standards at around 600,000 barrelsper day and has declined for years.That is not much more than Ecuador,and is tiny compared with Opec outputof just over 32m barrels daily.

More importantly, Qatar can affordto live without Opec. Natural gas is itsreal game, liquefied then exported viatankers at the rate of 77m tonnesannually, about 1.7m barrels per dayequivalent. Over 60 per cent goes toAsia. Asia LNG prices have surged.

Qatar plans to increase its LNGcapacity by almost half, partly to serveAsian demand. China is an increasinglyimportant customer. Its “blue sky”initiative requires replacing dirty coal(and oil) with cleaner gas. China’s LNGimport volumes have more thandoubled since 2016, despite higher

prices and piped gas supply from itsneighbours. Add the oil-like naturalgas liquids Qatar extracts — also notpart of Opec quotas — and most of itshydrocarbons are outside the cartel.

The US may have mixed feelingsabout Qataxit from Opec. Cartels arehardly the American Way. But thelargest US military base in the MiddleEast is in Qatar and good relationsbetween the tiny emirate and its hugeneighbour are therefore desirable.

The tower of power that was Opechas become wobbly. The issue is notQatar’s importance to the cartel as aproducer. It is Saudi Arabia’s politicalunpredictability and the threat thisposes to cohesion. Oil has weakenedof late, to $61 per barrel. Do not relyon Opec to buttress it.

FT graphic Sources: Bloomberg; Citi

China’s increasing preferencefor liquid natural gas

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Qatar/Opec: Gulf handicapQatar’s exit from Opec might not mean much to the oil cartel in the short term. Its crude production hasfallen for years. What Qatar does produce in plenty is natural gas, which it liquefies and ships via tanker.It sells most of its gas to Asia. Demand for LNG in the region, especially in China, has increased.

DECEMBER 4 2018 Section:FrontBack Time: 3/12/2018 - 18:54 User: timothy.digby Page Name: 1BACK, Part,Page,Edition: LON, 14, 1

Tuesday 4 December 2018 ★ 15

© The Financial Times Limited 2018 Week XX

Companies / Sectors / People

Companies23 Capital .....................................................21AMD ................................................................. 1AMEC..............................................................17ASML.............................................................. 17Activision.....................................................28Airbus...............................................................2Alitalia..............................................................4Altria.........................................................18,28Amazon...................................................20,21Anglo American........................................15Apollo Global Management..............14Applied Materials....................................17AstraZeneca..........................................14,15Aurora Cannabis......................................18Automattic.....................................................2BMW................................................................14BP......................................................................15Bain Capital ................................................14Bank of America......................................21Barnes & Noble.......................................20Barratt Developments..........................21Berry...............................................................14Big Lots........................................................20Bird...................................................................16Bovis................................................................21British Polythene Industries.............14CETC................................................................17Cambricon Technologies.....................17Campbell......................................................20Canopy Growth........................................ 18Carrefour......................................................28Citigroup.......................................................21

Coca-Cola..............................................18,20Constellation Brands.............................18Corrum Capital..........................................21Countrywide. .......................................14,21Cronos......................................................18,28Crown Castle.............................................28DRW................................................................27Daimler ......................................................1,14Deutsche Bank ........................................16Diageo............................................................18Discovery.....................................................28Dunelm..........................................................28easyJet .........................................................21Engie.................................................................4Eskom...............................................................8Flybe................................................................21Fresenius.....................................................20G4S.....................................................................2GCS ................................................................14Gazprom.........................................................4GlaxoSmithKline............... 13,14,15,20,28Glencore ................................................... 1,21Goldman Sachs...................................16,21GrainCorp.....................................................16Groupe Bruxelles Lambert...............20Hasbro..........................................................20Hodge Jones & Allen............................21Huawei........................................................2,17Intel..................................................................17Inter Milan ...................................................4JPMorgan................................................16,21Jefferies........................................................27Johnson & Johnson..............................28

Jump............................................................... 16Juul Labs......................................................18KLA-Tencor.................................................17KWFT..............................................................18Kartell .............................................................4Katanga Mining...........................................1Kering ...........................................................14Kier..................................................................28Kraft................................................................27Kroger...........................................................20LVMH .........................................................1,14Lam Research............................................17Lime.................................................................16Livedoor..........................................................8Lombard Odier.........................................27Lynparza ..................................................... 15MF Global....................................................27Marc Rich & Co...........................................1Mattel ............................................................20MedReleaf....................................................18Merck .......................................................14,15Mexcat...........................................................27Mondelez......................................................27Morgan Stanley........................................21Motivate........................................................16NT Butterfield & Son............................16Nestlé............................................................20Nissan...............................................................8OMV..................................................................4OnTheMarket.......................................14,21Otro..................................................................21Party City....................................................20Peabody Energy.......................................15

Persimmon.............................................14,21Purplebricks................................................21Quantum Partners..................................21RPC............................................................14,28Rappler............................................................6Redrow...........................................................21Rheinmetall.................................................28Rightmove..............................................14,21Royal Dutch Shell...........................4,15,21Rummage4Property.........................14,21Ryanair .........................................................21SMEE...............................................................17SMIC................................................................ 17Samsung....................................................... 17Schroders.....................................................27Signify............................................................28Soros Fund Management...................21Sports Direct..............................................21Spotify............................................................16Stobart Group............................................21T Rowe Price ...........................................27Take-Two Interactive...........................28Target............................................................20Ted Baker.....................................................15Tencent Holdings....................................16Tesaro.................................................14,15,28Third Point.................................................20Thomas Cook............................................28Tokyo Electron..........................................17Total..................................................................4Tsinghua Unigroup.................................17Uber.................................................................16Unilever.............................................14,15,20

Uniper..............................................................4United Technologies............................20Verizon..........................................................28Vinci................................................................28Waitrose........................................................21Walmart........................................................20Wintershall ....................................................4Wynn Resorts ...........................................28Zoopla.............................................................21

SectorsAerospace & Defence..........................28Airlines...........................................................21Automobiles.............................................1,14Banks.........................................................16,18Construction.........................................21,28Energy............................................................15Financial Services....................................18Financials................................14,16,17,21,27Food & Beverage........................14,16,20Industrial Goods................................14,28Industrials.....................................................21Media..................................................16,21,28Mining..........................................................1,15Oil & Gas.......................................4,14,15,27Personal & Household Goods.1,14,15Pharmaceuticals................................14,28Property........................................................14Retail..........................................1,15,20,21,28Retail & Consumer...................1,14,15,20Support Services......................................21Technology............................1,2,14,16,17,21Telecoms..................................................2,28Tobacco.................................................. 18,28

Transport.............................................1,16,28Travel & Leisure..........................21,28,28Utilities.......................................................8,15

PeopleAshley, Mike................................................21Beard, Alex.....................................................1Bernstein, David.......................................15van Beurden, Ben....................................21Bulcke, Paul ...............................................20Codling, Anthony.....................................21Dale, Jeremy...............................................21Enders, Tom..................................................2Frère, Albert..............................................20Githaiga, Mwangi.....................................18Glasenberg, Ivan...................................1,21Horie, Takafumi..........................................8Kelvin, Ray...................................................15Lindstrom, Allen......................................20Loeb, Daniel...............................................20Luti, Claudio.................................................4Mate, Daniel .................................................. 1Matherat, Sylvie....................................... 16Mistakidis, Aristotelis...............................1Moratti, Massimo.......................................4Mulligan, John..........................................20Page, Lindsay............................................ 15Peterson, Tor................................................1Polman, Paul .............................................20Ressa, Maria.................................................6Schneider, Mark.......................................20VanderZanden, Travis..........................16Walmsley, Emma..........................14,15,20Zaslav, David.............................................28

Stable door FCA seizes the moment withbank Brexodus warning — LOMBARD, PAGE 21

EdCrooks

EnergySource

In addressing the threat of global warming, capturing andstoring the carbon dioxide emissions from fossil fuelpower plants is widely seen as a necessity. Back in 2009,John Ashton, then the UK foreign secretary’s special repre-sentative for climate change, argued: “There is no credibleclimate strategy that doesn’t include a strategy to get veryquickly to the point where carbon capture and storagebecomes the universal standard for all new coal and,indeed,allnewgas-firedpowergeneration.”

Nine years on, the plunging costs of renewable energyand battery storage have changed the debate. Those, suchas Mark Jacobson of Stanford University, who argue that a100 per cent renewable energy system is realistic are stillin a minority, however, and there is widespread supportfor the idea that if the world is serious about cutting green-house gas emissions, carbon capture will have to be part ofthe solution. A group of 21 academics who published a cri-tique of Mr Jacobson’s analysis suggested that ruling outnon-renewable technologies, such as carbon capture andnuclear power, “could makeclimate mitigation more dif-ficult and more expensivethanitneedstobe”.

Despite the persistence ofthe case for carbon capture,Mr Ashton’s goal does notseem much closer. There are18 large-scale carbon captureprojects in operation, two atpower plants: BoundaryDam in Saskatchewan and Petra Nova in Texas. Others,including the Kemper plant in Mississippi, have ended infailure. The idea that carbon capture could soon be estab-lished as the standard for all new coal-fired and gas-firedpowerplantsseemswildlyunrealistic.

The Accelerating Carbon Capture Use and Storage sum-mit in Edinburgh last week acknowledged the problem.The Global CCS Institute, a think-tank backed by govern-ments and businesses, highlighted the conclusion of theInternational Energy Agency that carbon capture was “noton track” to help contain rising temperatures. Fatih Birol,IEA executive director, teamed up with Claire Perry, a UKminister, to argue in the Financial Times that it is “increas-ingly urgent” for the world to solve the problem. Today’scarbon capture plants represent less than 4 per cent ofwhat would be needed by 2030 to stay on course for theParisclimategoalofglobalwarmingof less than2C.

The attendance of the chief executives of BP, RoyalDutchShellandPeabodyEnergy illustratedthecontinuinginterest in the fossil fuel industries in the potential of car-bon capture. The technology has also been one of the fewareas in which Donald Trump’s administration has shownany interest in addressing climate change. The lesson ofthe past decade, however, is that carbon capture will needa lot more momentum behind it if it is to make progress atanything liketherate theIEAsuggests isneeded.

[email protected]

The idea thatcarbon capturecould soon bethe standardseems wildlyunrealistic

For the first time in living memory, theUS is facing a Toys R Us-free festiveseason. Many retailers are seeking tofill its $12bn shoes, with varyingdegrees of success, according toparents searching for Pikmi Flips andRocktopus, this year’s must-have toys.Analysis iPAGE 20

Retailers race to convinceshoppers toys are them

Undercooked The hardware gap chokingChina’s chipmaking ambitions — ANALYSIS, PAGE 17

JONATHAN ELEYRETAIL CORRESPONDENT

Shares in Ted Baker fell 15 per cent yes-terday as the company said it wouldappoint an external investigator toexplore claims of inappropriate behav-iourbyRayKelvin, itschiefexecutive.

A petition on organise.org.uk called forthe fashion brand to “put an end to theawkward ‘hugging’ policy”, saying therehad been 50 recorded incidents ofharassment at the company, includingsexual innuendo, asking female mem-bers of staff to sit on his knee and mas-sagingearsornecks, thewebsitesaid.

“It’s inappropriate and is part of a cul-ture that allows harassment to gounchallenged,” the petition said, adding

that the company’s human resourcesdepartment had failed to curb thebehaviour.

The petition has been signed by morethan 2,500 people, though it is not clearhow many of these are employees, sinceanymemberof thepubliccansign.

TedBaker issuedastatementafter theshare price fall saying an independentcommittee of non-executive directorshad been appointed “to ensure that theviews and concerns are recognised andcarefully considered, and that appropri-ate responses are taken forward”. Anexternal investigator would report onthe claims to this committee, the com-pany said. Mr Kelvin will not be step-pingasidewhile theclaimsareprobed.

Ted Baker is chaired by David Bern-

stein, the former Football Associationchairman, who has been in post since2013. There are four non-executivesother than Mr Bernstein, two male andtwofemale.

Analysts said investors would be con-cerned if Mr Kelvin were forced to quit acompanymadeverymuchinhis image.

“Ray Kelvin is not a hired hand. Thisis a business he created from scratch,”John Stevenson, analyst at Peel Hunt,said. “The share price drop reflects thefact that he is still instrumental, even ifhe is not running the business 24/7 inthewaythatheoncedid.”

Mr Kelvin, 62, describes himself as“the closest man to Ted”, an alter ago hedevised in1987.Heownsaboutathirdofthecompany,whichwentpublic in1997.

Ted Baker slumps as probe opens intoclaims of improper conduct by chief

Asforalmosteveryothermetal, thecopperpricebouncedyesterdayafter theUSandChinaannouncedatradetruce,up2percent to$6,352atonne.

Aswithnickelandzinc, thecoppermarkethasbeenunnervedbyfears thattradetensionsbetweenWashingtonandBeijingwouldfurtherstrainaChineseeconomyalreadyshowingsignsofslowing.Copperhascloselytrackedtherenminbisince June.

Buta fragile trucebetweentheUSandChina isnotwhat isreallyanimatingthecopperbulls. Instead, it is theprospectthatashift tocleaner formsofenergycreatesnewdemandforthemetal,whichisusedinelectriccarbatteriesandwindturbines.At thesametime, thereare fewlargeminescoming intoproduction.

AngloAmerican, theminer,estimatesthatby2030therewillbetheneedforanadditional5.6mtonnesofproductioncapacitytosatisfy theextraappetite.Thosewhoarebullishpoint to fallingcopper inventories: stocksat theLondonMetalExchangearedown45percentsinceMay. Inventoriesofcopperwouldonlysatisfyabout12daysofdemand,accordingtoGlencore.

Still, in theneartermtraderswillbemorefocusedonUS-Chinatensions.“Participantsonthemetalsmarketsarehardlyeuphoric—afterall, there is toomuchuncertaintyaboutwhetherthenegotiationswillactuallyresult inthetradedisputebeingresolved,”analystsatCommerzbanksaidofyesterday’sbounce.Neil Hume and Henry Sanderson Sources: Anglo American; Bloomberg

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A biotech investor said GSK hadlacked a growth story in pharma. “GSKhave taken advantage of low valuationsin the sector and a dislocation that hasexisted for a few months as investorsbegan to think that the big pharma com-panieshadstoppedbuyingupbiotechs.”

One person close to GSK said the dealshowed Ms Walmsley was willing toinvest in pharma and the company’sgrowth. “It’s something US pharmaholders understand. It’s a bit differentfrom UK pension funds versus US inves-tors who want companies to take somerisk in pursuit of growth. It’s definitely adeal thatadvancesherstrategy.”Lex page 14

Using the company’s focus on genom-ics, GSK believed it could identify manymore women who could benefit fromthe treatment, she said. “We see signifi-cant opportunities for the expanded useof Zejula in ovarian cancer and in othertumour types, including breast andnon-smallcell lungcancer.”

Rivals to Zejula, especially Astra-Zeneca’s Lynparza, have contributed toTesaro’s share price volatility. CreditSuisse said the PARP sector was“extremely competitive” but pointedout that the Tesaro price “comparesfavourably” with the $8.5bn potentialpurchase price at which Merck acquired50percentofLynparza inJuly2017.

news, close to the $75 a share offer fromGSK. The stock had traded around $26 ashare in mid-November before a reportthat itwasexploringasale.

GSK shares, meanwhile, fell 7.3 percent to £15.03, wiping about £5bn fromits value. GSK had been trading higherearlier in the day after it confirmed thesale of its consumer nutrition businessto Unilever for €3.3bn, in a cash-and-shares deal that would defray some ofthecostofbuyingTesaro.

Ms Walmsley is making a significantbet on a class of drugs called PARPinhibitors, including Tesaro’s lead drugZejula, whose potential, she said, hadbeen“fundamentallyundervalued”.

SARAH NEVILLE AND ARASH MASSOUDI

GlaxoSmithKline shares fell more than7 per cent yesterday after it unveiled thefirst big acquisition under EmmaWalmsley, a $5.1bn cash deal to buyoncology-focusedUSbiotechTesaro.

GSK’s drug pipeline is widely believedto have lagged behind its competitors inrecent years and Ms Walmsley, chiefexecutive since April 2017, has beenlooking to boost returns. The UK com-pany is paying a near 200 per cent pre-mium on Tesaro’s undisturbed shareprice justa fewweeksago.

The biotech’s shares soared nearly59 per cent to $73.50 in New York on the

GSK in $5.1bn swoop on US biotech3 Walmsley’s first big acquisition 3 Bet on ‘undervalued’ Tesaro drug 3 Shares down 7%

‘We seesignificantopportunitiesfor theexpanded useof Zejula inovariancancer’

DECEMBER 4 2018 Section:2Front Time: 3/12/2018 - 19:56 User: timothy.digby Page Name: 2FRONT, Part,Page,Edition: LON, 15, 1


COMPANIES

A mid all the excitement last week over FederalReserve chairman Jay Powell — both thesniping at him by Donald Trump and the shiftin his language about the scope for futureinterest rate rises — another item of Fed news

wasratheroverlooked.Randy Quarles, the Fed’s head of banking supervision,

was quietly confirmed as the next head of the FinancialStabilityBoard,effective immediately.

The FSB might not be everyone’s idea of a householdname. But for the past decade it has been crucial to theorchestration of financial regulation — overseeing theimplementation of the G20’s rescue operations after 2008and supervising the Basel Committee on Banking Supervi-sion and its rewriting of the rules on bank capital, leverageand liquidity. For the future of our globalised financial sys-tem,thequestionofwhoruns it ispretty important.

Mr Quarles is the third of an eminent trio to helm theFSB. After its creation in the wake of the crisis, it waschaired first by European Central Bank president MarioDraghi, then by Bank of England governor Mark Carney.That a Fed governor has been named as the latestincumbent sends two important signals: first, that theinstitution remains genuinely global; and second, that forall Mr Trump’s attacks on multilateralism, the US is stillkeen to engage in an international approach to financialregulation.

It also raises an obvious question. Is Mr Quarles — aTrump appointee to the Fed at a time when the adminis-tration has been pushing a national deregulatory agenda —goingtoargueforsimilar liberalisationataglobal level?

The chances of that look low. Although the Fed hasindeed proposed softening some rules, notably on banksbelow the eight systemically important financial institu-tions (Sifis), Mr Quarles is not expected to deregulatemuch more at home. Bank lobbyists are hoping he willremove US gold-plating. JPMorgan, for example, is subjectto a 3.5 per cent capital surcharge relative to the 2.5 percent set by the global rule book. In theory Mr Quarles’ newplatform could smooth the way for an alignment — thoughbankers should not hold their breath. At an event yester-day, he said his approachwould involve “recalibrationwithoutrelaxation”.

Good job. A light touchfromtheFSBwouldbeshort-sighted. Multiple economicand geopolitical uncertain-ties threaten to unleashextrememarketvolatility.

Mr Carney made vitalprogressduringhisstint incharge: thebankingsystemwassignificantly bolstered through tougher capital and liquid-ityrequirementsandtheintroductionofobligatorysecuri-ties clearing processes. But there is still plenty for MrQuarles totakeon.

Some of that will involve tweaks to the reforms of thepast decade. Countercyclical capital buffers, for example,areuntested:supervisorsaroundtheworldhavebeenhap-hazard in building them up in good times, and it is unclearhow and when they should be released now that bad timesseem to be looming. There are similar concerns over thefledgling liquidityrules.Fine-tuningwillbe important.

Mr Quarles is also likely to bring a welcome boost to theFSB’s transparency and engagement with the financeindustry.

Overarching all this, and a crucial test of the FSB’s met-tle, is the issue of how regional supervisors co-operate.Though banks have strengthened their balance sheets,they have been undermined to an extent by a breakdownof trust between the regions of the world. The US, EU andUK have all introduced rules to ringfence capital. EvenwithintheEU,national regulatorsroutinely trapbankcap-italandliquidity.This isboth inefficientandinflammatoryif it means that a group cannot easily use resources fromoneregiontohelpresolveproblemsinanother.

One way to help cement a more trusting relationshipbetween the likes of the Fed, the ECB and the Bank of Eng-land would be to orchestrate global stress tests that dis-courage regional regulators from thinking parochially onpotential disasters. A body designed to protect financialstabilitymustbeat thevanguardof threatmonitoring.

If there is one area where the FSB has fallen particularlyshort in the past decade, it is in tackling the risks that havebeentransferredfrommoreregulatedbankstouncheckednon-banks. Regulators helped make banks safer after2008. But in allowing lightly monitored asset managers totakeonmuchof thatrisk,broadersystemicworriespersistand may even have been magnified. Mr Quarles mustmake it a priority to shine a light on the darkest corners ofshadowbanking.

[email protected]

INSIDE BUSINESS

FINANCE

PatrickJenkins

Quarles poised to showthat Trump can playnicely in global sandpit

That a Fedgovernor willlead the FSBsends importantsignals

NICOLE BULLOCK — NEW YORK

Tencent Music Entertainment yester-day launched its initial public offeringas global stock markets rallied after aweekend ceasefire in the trade warbetweentheUSandChina.

The music streaming business, amash-up of Chinese companiesacquired and rolled up by Tencent, andselling shareholders will offer 82mAmerican depositary shares, or ADS, atbetween $13 and $15 each. One ADS rep-resents two class A ordinary shares,accordingtoaregulatoryfiling.

Based on that range, the entire offerwill raise up to $1.2bn, with $615.4m

going to Tencent Music and the rest toselling shareholders. The filing also saidTencent Holdings, controlling share-holder of Tencent Music, had agreed topurchaseupto$32mworthofshares.

The Tencent-backed streaming com-pany, which has a reciprocal holding inSpotify, had already halved its ambitionto raise $4bn down to about $2bn, theFinancial Times has reported. The com-pany plans to list on the New York StockExchangeaboutDecember12.

The formal launch of the IPO yester-day comes after the group had delayedits listing in October after a sell-off inglobal markets. People with knowledgeof the situation said last month the com-

pany was hoping to press on after theG20 summit last weekend, whichresulted intheUS-Chinatariff truce.

Morgan Stanley, Goldman Sachs,JPMorgan, Deutsche Bank and Bank ofAmerica Merrill Lynch are lead under-writersontheIPO.

With more than 800m unique usersacross several platforms, Tencent Musicis one of the world’s largest streamingservices. IResearch Consulting Group, amarket research company, has forecastthat China’s online music pan-enter-tainment market will grow fromRmb33bn ($4.7bn) last year toRmb215.2bn in 2023 — a compoundannualgrowthrateof36.7percent.

Media

Tencent Music seeks to raise $1.2bn in IPOJAMIE SMYTH — SYDNEY

Australian agricultural group Grain-Corp said it had received a A$2.4bn($1.8bn) takeover bid from Long-TermAsset Partners, an asset managementcompany, sending its shares up bymorethanaquarter.

The all-cash offer comes five years afterCanberra blocked a A$3.4bn takeover ofGrainCorp by Archer Daniels Midlandforbeingnot inthenational interest.

GrainCorp said its directors were notyet able to make a recommendation toshareholders but that its board wouldengage with LTAP, a newly set up assetmanagement group that counts several

high-profile Australian business peopleamong its directors. It noted that the bidinvolved a complex financing structure,with Goldman Sachs providing A$3.2bnin loans and UK-based Westbourne Cap-italprovidingafurtherA$400m.

LTAP directors include Tony Shep-herd, a former president of the BusinessCouncil of Australia and previouslychairman of Transfield Services; LanceHockridge, a former managing directorof rail group Aurizon; and AndreaStaines, a former director of Queens-land Investment Corporation. LTAP hasnot revealed which organisations areprovidingequity fundingfor thebid.

The bid comes as the agricultural

group is reviewing its portfolio and capi-tal management after a disappointingrecent share price performance and adrought in Australia’s east that isexpectedtocutgrainproduction.

LTAP’s all-cash bid of A$10.42 a sharewas a 42 per cent premium to Grain-Corp’s last closing price. It values Grain-Corp at about nine times 2018 earningsbefore interest, tax, depreciation andamortisation. Shares in GrainCorp wereup27percentatA$9.25yesterday.

Adam Fleck, Morningstar analyst,said LTAP’s bid was opportunistic dur-ingthedrought,havingbeatendownthecompany’s share price, but above Morn-ingstar’sA$8.30fairvalueestimate.

Food & beverage

Australia’s GrainCorp surges on $1.8bn bid

TIM BRADSHAW — LONDONSHANNON BOND — SAN FRANCISCOJAMES FONTANELLA-KHAN — NEW YORK

Uber is considering a takeover of ascooter start-up and has discussed apossible multibillion-dollar deal withboth Bird and Lime, according to peoplefamiliarwithall threecompanies.

The talks, which are still at an earlystage, come as Bird and Lime have beencourting investors for further privatefinancings to fuel their rapid but costlyexpansion.

The two companies have each raisedhundreds of millions of dollars at valua-tions in excess of $1bn in recent months.Since then, they have launched their

services in dozens more cities aroundthe world, meaning Uber could have topaymultiplebillionstowinadeal.

Uber’s interest highlights just howquickly so-called “dockless” electricscooter and bike-sharing rentals havestarted to eat into the role of car-hailingservices in fulfilling shorter trips inurbancentres.

People with knowledge of the talkssaid they could yet fall apart, especiallyover the price of the young companieswith business models that areunproven.

Nonetheless, a buyout would be thelatest in a series of similar deals thisyear. In April, Uber paid more than$100m for Jump, an e-bike start-up,then in July, its rival Lyft boughtMotivate, which operates bike-shareservices in New York and several otherUScities.

Neither Uber, Bird nor Lime com-mented directly on the takeover talks,which were previously reportedby technology news site The Informa-tion.

“We are focused on building an inde-pendent company that is the leadingglobal provider of last-mile mobilitysolutions,”saidLime.

Travis VanderZanden, Bird’s chiefexecutive, said in a statement: “Bird isnot forsale.”

Uberdeclinedtocomment.Buying Bird or Lime could accelerate

Uber’s ambitions to become a one-stop shop for any kind of transporta-tion, from cars and bikes to trains andbuses. While Uber and Lyft already havetheir own scooter fleets in cities such asSanta Monica, they are much smallerthan those owned and operated by BirdandLime.

Purchasing thousands of vehicles andrecruiting networks of contractors tocharge and maintain them can beexpensive and time-consuming, espe-cially when so many start-ups are fight-ing to work with only a small number ofChinesemanufacturers.

Bird and Lime have also seized a first-mover advantage by winning operatingpermits in several cities, in effect lock-ing Uber out of those markets formonthsatatime.

However, as Bird and Lime race eachother to deploy in cities across bothNorth and Latin America, as well asEuropeandintoAsia, theyarealsorack-ing up significant costs, particularlyupfrontvehicleexpenses.

Many more scooter start-ups havealso emerged in local and regionalmarkets, adding further competitivepressure.

Technology

Uber eyes takeover of scooter start-upUS group has discussedmultibillion-dollar dealswith Bird and Lime

OLAF STORBECK — FRANKFURT

Investors in Deutsche Bank are con-cerned that the criminal investigationinto the suspected money launderingactivities of the lender’s wealth manage-ment unit will make it harder for Chris-tianSewing, thechiefexecutive, tocarryouthiscrucial turnroundagenda.

Two days of raids on Deutsche Bank’sFrankfurt headquarters late last week,including Mr Sewing’s office, sent thebank’s share price to an all-time low andincreasedthepressureonthechiefexec-utive as well as on Deutsche’s chief regu-latoryofficer,SylvieMatherat.

Deutsche’s share price has lost 30 percent since Mr Sewing was appointed inApril.

Prosecutors in Frankfurt suspect thatDeutsche helped wealth managementclients to transfer dubious funds into aDeutsche Bank vehicle based in an off-shore tax haven from 2013 to 2018 with-out flagging potential money launder-ingto lawenforcementauthorities.

The criminal investigation was trig-gered by leaked documents on offshoretax havens, the so-called PanamaPapers. Two Deutsche Bank managingdirectors and further unspecificemployees are in the crosshairs of theinvestigation. Prosecutors stress that nomember of the management board hasbeentargeted.

Theallegedmisconduct involvedReg-ula Limited, a former Deutsche Banksubsidiary. It was based in Road Townon the British Virgin Islands, accordingtoapersonfamiliarwiththematter.

Regula has 900 clients and €311m inassetsunder management. ItwaspartofDeutsche’s Global Trust Solutions oper-ations sold to the Bermuda-basedlender NT Butterfield & Son in March2018.

The sale was part of a programmecalled “Protect, Transform, Grow” thatbegan in2015underMrSewing’s leader-ship as co-head of Deutsche’s privateand commercial bank, the division thatoversees wealth management. In 2015,Deutsche started to de-risk wealth man-agement by dropping some clients, aperson with knowledge of the mattertoldtheFinancialTimes.

A top 10 investor in Deutsche Banktold the Financial Times that “nobodyexpects that there is a direct linkbetween [Mr Sewing] and the allegedmisconduct, but he will be busy mak-ing this point over the comingmonths”.

The investor added that the keyconcern was that the investiga-tion might divert the chief execu-tive’s attention from executing the

turnround agenda. “Mr Sewing has onejob to do and that is raising Deutsche’srevenue,”saidtheperson.

Even before the raids, analysts onaverageexpectedMrSewingwouldmisshis promise to lift the lender’s return ontangible equity to above 4 per cent by2019. On average, analysts forecast areturnof just2.5percent fornextyear.

A different asset manager holding a0.5 per cent stake in Deutsche warnedthat the money laundering investiga-tionwas likely todragonfora longtime.

“It will be a key agenda item for thebank’s management board and assuch will divert some time and atten-tion from the operative business,” thepersonsaid.

A second top 10 investor saidthat “[the investigation]cannot help revenue,and it cannot helpmorale”, but he saw“zero risk” that thematter could distractMr Sewing fromimplementing his

agenda at Deutsche. “It’s always thenature of the CEO job that you have tomultitask and deal with several issues atthesametime,” the investoradded.

A third top 10 shareholder alsobacked Mr Sewing, saying he was notconcerned that the investigation mightimpair the chief executive’s focus on theoperating business and praising the newmanagement’sachievementssofar.

Since his appointment as chief execu-tive, Mr Sewing has cut 2,300 jobs andpromised to axe another 5,000 by theendofnextyear.

While the bank is on track to meet its2018 cost-cutting targets, Mr Sewing inOctober asked investors for morepatienceonhisefforts toraiserevenue.

Mr Sewing acknowledged over theweekend to the Bild am Sonntag news-paper that the investigation was damag-ingDeutsche’sreputation.

Hestressedthathewasnotconcernedthat itmightreachhimpersonallyas thebank “thoroughly investigated the Pan-amaPapers”.

Asked if he had made any mistakes,

Mr Sewing said: “I am at peace withmyself.”

An investigation into the PanamaPapers by the German financial regula-torBaFinconcludedin2017thatnoGer-man bank had violated money launder-ingrules“significantly”.

Klaus Nieding, vice-president of theGerman Shareholders’ Protection Asso-ciation and although a longstandingcritic of Deutsche Bank, criticised thecriminalprosecutors.

“The intensity of the operationappears just disproportionate to me,”Mr Nieding — a capital markets lawyer— told the Financial Times, adding thatthe authorities seemed to “take asledgehammertocrackanut”.

Frankfurt’s criminal prosecutorpraised the lender’s co-operation in theinvestigationonFriday.

The prosecutor stressed that “Deut-sche Bank is fully co-operating andanswering all queries unreservedly”and pointed to “very quick and verygood progress” in investigating the sus-pectedmisconduct.

Banks. Panama Papers

Investors fear raids will hit Deutsche turnroundCriminal investigation into

suspected money laundering

heaps pressure on Sewing

Deutsche Bank’sFrankfurtoffices wereraided, addingto the problemsof ChristianSewing, thechief executive— Krisztian Bocsi/Bloomberg

$100mBottom-rangeestimate of theprice paid byUber for Jump

$1bnValuations atwhich Bird andLime have raisedmillions of dollars

DECEMBER 4 2018 Section:Companies Time: 3/12/2018 - 19:19 User: stephen.smith Page Name: CONEWS1, Part,Page,Edition: LON, 16, 1


BARNEY THOMPSON ANDDELPHINE STRAUSS

The financial regulator has urged agroup of international banks in the Cityof London to limit the number of cli-ents they move overseas as part of theirBrexitpreparations.

The Financial Conduct Authority wroteto the banks last week warning them tomake “the minimum necessarychanges” to where their clients arebased. It said it was “prepared to inter-vene where we see steps being takenwhich could expose clients or marketstounacceptableexecutionrisks”.

In the letter, first reported by Finan-cial News, the FCA added that itexpected the banks to concentrate on“day one readiness” for Brexit and tolimit disruption “to avoid harm to theclients they serve or markets in whichtheyoperate”.

It added: “Clients should not bemovedoutof theUKuntil theFCAissat-isfied that the relevant UK boards and/or senior managers have fully consid-ered the impact of their firms’ proposalson every category of client, including

whether their proposed changes are ineachclient’sbest interests.”

One person at a Swiss bank said it hadreceived similar inquiries from the reg-ulator previously “asking about whatclient business we are planning to moveaway from the UK . . . which seems tobeafocus fromtheFCAatthemoment”.

They thought it was “more aimed at

those without a subsidiary structure inthe UK or on the continent already”.One US bank said the Bank of England“is being very accommodating about usneedingtomoveEUclients”.

As for non-EU clients, the FCA saidthe UK would have a post-Brexit regula-tory framework that delivered “equiva-lent outcomes to the EU27” and so mov-ing them out of the UK could exposethem to differing contractual, insol-vency and tax regimes. “Where firms

are looking to make changes . . . whichmay impact non-EU 27 clients, theyshoulddiscuss thoseplanswithus.”

The letter was signed by Megan But-ler, the FCA’s executive director ofsupervisionThe big banks have been setting upalternative European hubs in placessuch as Paris, Frankfurt and Dublin.They have also been increasing theamounts they are spending on BrexitpreparationsandarestickingtoaMarch2019 timeframe despite governmentplans foratransition.

Andrew Bailey, the FCA’s chief execu-tive, denied the move was politicallymotivated, telling the Treasury selectcommittee it was entirely consistentwiththeregulator’sobjectives.

“We didn’t do this to say, ‘nobodymust leave the UK,’” he said. Institu-tions might well be under pressure to“do a big jigsaw puzzle” in order to makeoperations more self-sufficient, but “ifyou are considering moving non-Euro-pean business, then you have to makethose decisions in the interests of the cli-ent”.See Lombard

Financials

FCA warns banks on relocating clients

produce the current target size of 7nmchips. SMEE’s machines can only matchwhat ASML was able to do some 15 yearsago. Today’s most basic smartphonesrequire chips that are between 14-16nmin size, but the smallest chips offered byChina’s biggest manufacturer, SMIC, is28nm.

If the US cuts them off from purchas-ing foreign equipment, Chinese plantswill also miss out on accumulating oper-ationalexperience.

“Basically, it’s a double whammy,”said Mr Simpson. “You’ve got two bigbottlenecks. You need to get the equip-ment intoyour fabsandsecondly you’vegot to know how it runs and the intellec-tual property process to make use ofthatequipment.”

If faced with US export controls, Chi-nese-owned plants could continue pro-ducing lower-end semiconductors, suchas analogue chips, used in everythingfrom industrial robots to electric vehi-cles. Out of reach in the medium termwould be making the most advancedchips able to support AI functions or 5Gtelecommunicationnetworks.

Leading edge chips are also wheresales and margins are highest. TSMCexpects revenue from sales of advancedchips 28nm and smaller to rise to asmuch as 70 per cent by this year, upfrom42percentonly fouryearsago.

But in the long term, analysts said aUS export ban would be likely to cementBeijing’s resolve to cultivate a whollyhomegrown semiconductor industryalong every step, from design to fabrica-tiontopackaging.

“In the short term, US export controlscan seriously set back Chinese progresson semiconductors. In the longer term,it’s hard to say if China will be perma-nently set back,” said Mr Wang, notingthat fear of US export controls helped tomarshal the resources that shapedJapan’s most dominant semiconductorequipmentplayers.

“The more tightly the US controlsthese goods, the more important itbecomes for China to make these goodsitself.”

Capobianco, a partner at Hogan LovellsinWashington.

Any US ban would also have animpact on the non-American chipequipment suppliers, because of theintegration of what is a highly special-isedsupplychain.

“ASML cannot do without AppliedMaterials and the other way around. Ifyoutakeevenoneoutof thevaluechain,that may hamper Chinese fabs[plants],” said a former ASML execu-tive.

“[These equipment suppliers] havethe research and development, thetrade secrets in metallurgy, the recipes:all of that knowledge base is 40 yearsold,”saidMrPuhakka.

“This is not about money. This isabout the knowledge base . . . and thatknowledgebase isnotmoving.”

Some Chinese companies are startingtoproducetheirownchipmakingequip-ment. At the headof the packare Shang-hai-based AMEC, which makes waferfabrication and packaging equipmentfor 28nm chips, Shanghai Micro Elec-tronics Equipment (SMEE), which iscreating chip-etching lithographymachines, and CETC, the state defencecompany, which announced a 28nm ionimplantingdevicethisAugust.

But no Chinese company is close tobeing able to offer equipment that can

China’s reliance on these companieshas made it vulnerable. “Firms likeApplied Materials, Lam Research, andKLA-Tencor made 10 to 20 per cent oftheir revenues in China in 2017, a sharewhich is expected to rise in 2018,” saidDan Wang, an analyst at Beijingresearch firm Gavekal Dragonomics.“China is a large and growing market forthem and these companies don't wantexportcontrols thataretoorestrictive.”

Under current laws, an export ban onsemiconductor equipment would meanforeign companies such as Samsung andIntel with foundries located in China aswell as wholly-owned Chinese foundrieswould be unable to buy Americanequipment, though foreign companiesare likelytobeable toapply forwaivers.

“One of the ideas of export controls isto prevent the release of the tech to cer-tain foreign nationals . . . as an exam-ple, that could mean to a Chinesenational wherever they are located, orto anyone within the physical geo-graphic region of China,” said Anthony

EMILY FENG — BEIJINGKATHRIN HILLE — TAIPEI

Xi Jinping, China’s president, visited amemory chip plant in the city of Wuhanearlier this year. In a white lab coat, hemade an unexpectedly sentimentalremark,comparingacomputerchiptoahuman heart: “No matter how big a per-son is, he or she can never be strongwithoutasoundandstrongheart.”

China’s ambitions to be a leader innext-generation technology, such asartificial intelligence, rest on whether itcan design and manufacture cuttingedge chips and Mr Xi has pledged$150bntobuildupthesector.

But Beijing’s plan has alarmed the USand chips, or semiconductors, havebecome the battlefield in the trade warbetweenthetwocountries.

It is a battle in which China has a veryvisibleAchillesheel.

While the two sides agreed a truceover the weekend, Washington plans tostepupexportcontrolsnextyearsonso-called foundational technologies —those that can enable development in abroad range of sectors — and the equip-ment for manufacturing chips is one ofthekeytargetareasunderdiscussion.

The $412bn global semiconductorindustry rests on the shoulders of justsixequipmentcompanies, threeof themUS-based. Together, they make nearlyall of the hardware and software toolsneeded to manufacture chips, meaningan American export ban would chokeoff China’s access to the basic toolsneededtomakethe latestchipdesigns.

“You cannot build a semiconductorfacility without using the big majorequipment companies, none of whichare Chinese,” said Brett Simpson, thefounder of Arete Research, an equityresearch firm. “If you fight a war with noguns you’re going to lose. And they don’thavetheguns.”

UnderBeijing’sauspices,Chinesechipcompanies have made enormous gainsin semiconductor design as well as chiptestingandpackaging.

Several private and state-owned Chi-nese groups — Intel-backed TsinghuaUnigroup, Cambricon Technologies andHuawei’s HiSilicon among them — havealready begun to venture into designingthe leading edge chips capable of artifi-cial intelligenceapplications.

But the real difficulty lies in makingthe chips, not designing them. “From adesign perspective, Chinese companiesare at least on par with anyone else inthe world,” says Risto Puhakka, presi-dent of VSLI Research. “Where theyhave a challenge is if they decide tomakeaverycutting-edgechip.”

As Chinese semiconductor plants tryto catch up, they have few choices whenoutfitting or upgrading their chip foun-dries. Only a few equipment suppliersremainafteradecadeofconsolidation.

Foremost among them is ASML, theDutch group that makes the photoli-thography machines that print and etchdesigns on to silicon wafers. It is the onlysupplier of the extreme ultra violet(EUV) lithography machines needed tomake a 7 nanometre (nm) processor,the industry’scurrentgoldenstandard.

In the US, Lam Research and AppliedMaterials, as well as the Japanese com-pany Tokyo Electron, dominate themarket for equipment that can depositbillions of transistors and other activecomponents on to a single chip. AnotherUS company, KLA-Tencor, sells much ofthe technology used in testing and mon-itoringthequalityofchipproduction.

COMPANIES

US holds all the chips in tech battle with ChinaBeijing’s ambitions over next-generation technology left vulnerable to American leadership in semiconductor industry

‘If you fight a war with noguns you’re going to lose.And they [the Chinese]don’t have the guns’

Power struggle: a chip production line in China. US plans for export controls on chip manufacturing equipment threaten to hamper China’s tech progress — Reuters

‘We didn’t do this tosay, ‘nobody mustleave the UK’Andrew Bailey, FCA chief


COMPANIES

ERIC PLATT, ALISTAIR GRAY ANDJAMES FONTANELLA-KHAN — NEW YORK

The maker of Marlboro cigarettes hasheld early talks to buy Canadian mari-juana company Cronos in what wouldbe the first major takeover of a pot pro-ducerbyabigtobaccogroup,accordingtopeoplebriefedonthediscussions.

A takeover of Cronos by Altria amidspreadingdecriminalisationwouldrankamong the largest investments in thebudding pot industry. Shares of Cronos,a Canadian group that grows and dis-tributes cannabis, climbed 14 per centin New York to $10.44, giving the com-panyamarketcapitalisationof$1.9bn.

The talks, first reported by Reuters,came as investors have piled into thesector;Canadabecame the largestcoun-try to completely legalise recreationalpot use in October and several US stateshavemadesimilar legalchanges.

Beer and spirits maker ConstellationBrands this year pumped almost $4bn

into Canopy Growth, another largeCanadian pot group, while rival AuroraCannabis in May struck a $2bn deal tobuy medical marijuana groupMedReleaf. Deals worth more than$10bn have been agreed so far this year,up more than sevenfold from 2017,accordingtodata fromDealogic.

Other large consumer companieshave been eyeing cannabis as decrimi-nalisationof thedrugspreads.

Coca-Cola has held talks with Can-ada’s Aurora to develop beverages whileAltria has also held talks with Tilray andAphria.Diageo, thedrinksgroupbehindJohnny Walker whisky, has also beenexploring investment opportunities inthe sector, according to people close tothecompany.

Spending on cannabis is expected toclimb to $32bn by 2020 from $9.5bn lastyear, according to analysts withArcViewandBDSAnalytics.

The talks came as Washington cracksdown on tobacco and ecigarettes as con-cerns mount that a new generation isbecomingaddictedtonicotine.

Altria isalsoseekingtoacquireastakein Juul Labs, the ecigarette start-upvalued at $16bn that has seized three-quartersof theUSmarketsince2015.

Tobacco

Altria in earlytakeover talkswith Canadamarijuanagroup Cronos

TOM WILSON — NAIROBI

Mary Muthengi is preparing to host herextended family for Christmas. She hasfour siblings and her husband has three.Togethertheyalsohavethreechildren.

“There will be so many people, we’lleven sleep on mattresses on the floor,”she said at her new nine-room home inMachakos County, 40 miles south-eastof Nairobi. “There will be new shoes,new clothes, goat and chicken to eat.Thechildrenaresoveryexcited.”

Mrs Muthengi, 32, will be hostingChristmas this year for the first timethanks to a housing loan from KWFT, aKenyan microfinance bank. With thesupportof internationalhousingcharityHabitat for Humanity, the bank is revo-lutionising how women on low incomesaccess funds to build and improve theirhomes inruralareasof thecountry.

Founded in 1981, KWFT initiallyfocused on women, to give access tobanking services they were excludedfrom. Over time it found women to beextremelyreliablecustomers.

Kenya has a population of around50m but, according to the central bank,fewer than 30,000 mortgage accounts.Informal land ownership, particularlyin rural communities, means lenderscannot use property as security, andprospective borrowers usually have fewotherassets touseascollateral.

In response KWFT has taken a differ-ent approach to lending. The bank sawthat women were often using its smallbusiness loans to build or repair theirhouses. So while women could notafford to buy homes, they could build

them,slowly, if theyhadaccesstocredit.Habitat for Humanity, the FT’s Sea-

sonal Appeal partner, provided theresearch and training to help to developa new type of loan called “NyumbaSmart” — meaning beautiful home —using a $6.4m donation from the Mas-tercard Foundation. KWFT deliveredthestaff, thenetworkandtheclients.

“Housing is something we werealways going to be ultimately involvedwith, but Habitat was a very importantcatalyst to make sure we have the rightproduct,” Mwangi Githaiga, managingdirector, said in an interview at theKWFTheadquarters inNairobi.

The loans, launched in December2014, provide women with up to Ks1m($10,000), repayable over a maximumof three years, for the construction of allorpartofahouse.

Mrs Muthengi, who earns about $40 aday trading second-hand clothes, bor-rowed Ks100,000 ($1,000) this year tocomplete the construction of her home.It is the first time she and her familyhave lived inahousetheyown.

“I have dreamt about having a home,but not a home like this,” she said of theunfinished building, which has a daz-zlingbluetinroof.

To avoid issues of limited collateral,womensuchasMrsMuthengi,whohavean income but no assets, are organisedinto groups that function as unique bor-rowing associations. When a womanwants to borrow funds for her home,

affordability is assessed by the KWFTloan officer, but the decision is taken bythe group. If the borrower fails to keepup with repayments, all other lending tothe group ceases until the shortfall ismet,oftenbytheothermembers.

“We use social collateral rather thanhard collateral,” Mr Githaiga said.“Because we are village-based we knowour customers [ . . .] and other womenare willing to say, ‘give her the money

and if she doesn’t pay we will takeresponsibility’.”

‘Surpassingexpectations’

On a bright November morning in thevillage of Kyangala, 10 miles south-eastof Machakos town, a group is decidingwhether to lend Ks200,000 to WayuaRedemter Kisilu, so she can put a roofon her half-built home. Mrs Kisilu issent to the shade of a nearby tree as thegroup confers. Heated discussionensues: Mrs Kisilu hasn’t been active inthe group, often missing meetings. Theydecide to approve the loan only if sheagrees to attend more regularly.

KWFT has 245 branch offices in 45 ofKenya’s 47 counties, and has developed

deep networks in the communities itserves, building relationships based onmutual trustandunderstanding.

The unique community-based bank-ing model has been extremely success-ful.WhenKWFTandHabitatembarkedon the project five years ago, the targetwas 17,000 loans. Today the initiative —which is also active in Uganda via Cente-nary Bank — has issued more than60,000, mobilising in excess of $60mand helping at least 300,000 house-holds. On average KWFT makes 1,600NyumbaSmart loansamonth.

“We have surpassed our target andour expectations completely,” saidKevin Chetty, a director at Habitat. “Notonly are you providing shelter, not onlyare you changing lives of householdsand children, but you are also shapingfinancial inclusion.”

The Kiani women’s group is one ofKWFT’s longest-running borrowingcircles. Its chairperson is MonicahMbeke Mbuvi, a formidable 67-year-oldformer teacher, turned-small-town-business-mogul. Founded in 2009, hergroup has 36 women with a variety ofhousing,businessandappliance loans—KWFTalsoprovidesborrowingfacilitiesfor household items such as solar panelsandcleanenergycookingstoves.

Mrs Mbuvi’s blue and white home islined with trees, perched on a plot ofland above the village. Since NyumbaSmart was launched, she has borrowedKs320,000 ($3,100) in four loans, pay-ing them off each time. She is about torequest Ks150,000 to construct gates atherentrance.“Iusedtofear taking loansas I heard people saying that if you bor-rowed money you could lose every-thing,” Mrs Mbuvi said. “Now when I sithere in my home and look around, I amsoveryproud[ . . .] Iamjustsohappy.”Additional reportingbyDonaldMagomerePhotographsbyAdrianeOhanesian• Your gift will be doubledIf you donate to Habitat for Humanitythrough theFT’s SeasonalAppeal, theHiltiFoundation, a charitable organisation, hasgenerously agreed to match your gift.ft.com/habitat-facts

Kenyan women buy homes and changetheir lives with innovative new schemeBank’s lending project with Habitat for Humanity brings shelter and financial inclusion to rural areas

Amount borrowed

Source: Habitat for Humanity Terwilliger Centerin partnership with Mastercard Foundation

Per cent

0

20

40

60

80

100

Less thanKs100,000

Ks100,001-Ks200,000

Ks200,001-Ks300,000

Ks300,001-Ks400,000

Ks400,001-Ks500,000

Monicah MbekeMbuvi chairs theKiani women’sgroup, one ofKWFT’s oldestborrowing circles

Mary Muthengi at home with herthree children will this year behosting Christmas for the firsttime thanks to a housing loanfrom KWFT — Adriane Ohanesian/FT

Seasonal Appeal 2018Find out more about Habitat forHumanity’s work around theworld and donate to the appeal

ft.com/appeal

Canada became the largestcountry to completelylegalise recreationalpot use in October

The maker of Marlboro cigarettes iseyeing a marijuana market move

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DECEMBER 4 2018 Section:Ad Page Time: 3/12/2018 - 15:30 User: john.lee_mag Page Name: AD FT2, Part,Page,Edition: LON, 19, 1


Albert Frère, the self-made billionaireBelgian whose dealmaking helpedreshape corporate Europe, has diedaged92.

In a career lasting more than 60 years,swaths of European industry passedthrough Mr Frère’s hands and he helpedto transform the face of the continent’ssteel,utilities,oilandbankingsectors.

Groupe Bruxelles Lambert, the com-pany he built in a decades-long partner-ship with Canada’s Desmarais family,said in a statement: “For more thanthree decades, under his leadership,GBL became one of the largest holdingsin Europe. His professional and humanqualities have deeply marked ourgroup.”

Born in 1926 in the Belgian village ofFontaine-l’Evêque, Frère was theyoungest of three children. His fatherdied when he was young, leaving hismother in charge of the family business,

a manufacturer of nails and chains forindustry.

Frère later joined the business andoversawitsexpansionduringapost-sec-ondworldwarbuildingboom.

He drove the family company to buy asteel mill in Charleroi, the first of aseries of purchases that would consoli-datemuchofBelgium’ssteel industry.

Through the GBL group, Frère hadheld significant stakes in some ofEurope’s biggest companies, such asTotal, Adidas, Pernod Ricard, andLafargeHolcim.

His wealth came from his ability tobuy into companies cheaply and sell atgreat profit, leaving him with a personalfortuneof$5.8bn,accordingtoForbes.

So great was the scale of his cross-frontier corporate consolidation thatsomefellowcountrymenaccusedhimof“selling Belgium” by putting nationalchampionsunder foreigncontrol.

He was unfazed by the critics. “I am aBelgian first of all but I am also a Euro-pean,” he said in a rare interview givento the Financial Times in 1999. “If we

want to build Europe, these kinds ofnationalbarriershavetocomedown.”

Frère argued that companies such asBelgium’s Petrofina — which he later

merged with France’s Total — wereexposed in a world of business “mam-moths and mastodons”. By merging,they could develop in the framework ofaninternational,globaleconomy.

Thebusinessmanpursuedthisphilos-ophy into old age and in 2006, the yearof his 80th birthday, he played a centralrole in determining the future of Ber-telsmannandSuez.

GBL, the investment company that he

ran, was the only outside investor inBertelsmann and sold its quarter stakeback to the company for €4.5bn in 2006— a hefty price for the German mediagrouptorestore full familycontrol.

It also backed plans to merge privateutility Suez, in which GBL was a leadingshareholder, with Gaz de France, amega-alliance brokered by the Frenchgovernment.

Frère prided himself on his discretionwhen it came to doing business andhis sense of timing over when tocall a deal. Some of his success camefrom the unpredictability of his invest-mentdecisions.

He is survived by his son Gerald anddaughter Ségolène, both of whom areinvolved in the family businesses.Charles Albert, his younger son, died inacarcrash in1999.Sarah Laitner in Brussels and Leila Abboudin London

COMPANIES

LEILA ABBOUD AND AMY KAZMIN

Unilever has agreed to pay €3.3bnfor GlaxoSmithKline’s consumer nutri-tion business, expanding its footprint inIndiawithmaltedbeverageHorlicks.

The deal is likely to be the last majormark left on the Anglo-Dutch giant byits veteran chief executive Paul Polmanbeforeheretires in January.

Unilever fought off competition fromrival Nestlé and Coca-Cola to win theauction. It will fund the acquisitionlargely through shares of its listed India

subsidiary Hindustan Unilever andlimit thecashoutlaytoabout€639m.

For GSK, the divestment will furtherchief executive Emma Walmsley’s aimto inject more cash into the group’s coreunitofdrugresearchanddevelopment.

Marketed in Asia as a nutritious boostto children’s diets, Horlicks fits the billfor global consumer goods companieshunting for assets to satisfy demand forhealthyandconvenient foods.

Withmorethan90percentof its salesfrom India, the deal was a rare chance toacquire a fast-growing product in anemerging market where consumers’diets are changing as income per headgrows. The business has annual sales ofroughly €550m, derived largely fromtheHorlicksandBoostbrands.

The fierce auction pushed up the pur-chase price, prompting some analysts toquestion whether the valuation was toohigh for a business that has recordedslowergrowthoverthepast twoyears.

Sriram Gurijala, analyst at SociétéGénérale, estimated that the deal hadbeen agreed at 23 times enterprise val-ue-to-ebitda ratio before synergies, andwith cost savings factored in, the ratiowould fall to “just under 20 times”. That

is well above the 16 times average multi-ple seen in the food sector since 2000,saidBernsteinanalystAndrewWood.

Unilever did not give a specific costsavings target, however, saying onlythat it expected to achieve “substantialsynergies” in areas from marketing todistribution by combining the busi-nesses in its largestemergingmarket.

Speaking on CNBC, Nitin Paranjpe,who heads Unilever’s food and refresh-ments business, said Horlicks still hadroom to grow once they put marketingmuscle behind it, especially in emergingmarkets inAfricaandsouth-eastAsia.

“Penetration levels continue to bevery low,” said Mr Paranjpe. “With thebenefit of the strong brands that wehave and the company we have in India,

we see the opportunity for stronggrowthandvaluecreation.”

Mr Paranjpe added that the strongperformance of the Hindustan Unilevershares — which are up 45 per cent in thepast year — meant that the group hadchosen to use them as the acquisitioncurrency: “We are using the paper inIndiatocreatevalue.”

Thedeal structurecalls forGSK’spub-licly traded GSK Consumer HealthcareIndia to be merged with Hindustan Uni-lever, with shareholders in the formerreceiving 4.39 shares in Hindustan Uni-lever for each of their shares. Unileverwill also acquire GSK’s Bangladesh busi-ness and certain other assets outsideIndia foracombinedvalueof€639m.Additional reporting by Arash Massoudi

Retail & consumer

Unilever agrees €3.3bn deal for HorlicksAnglo-Dutch group set toexpand in India withpurchase of GSK business

The acquisition markeda rare chance to acquirea fast-growing product inan emerging market

ALISTAIR GRAY — NEW YORK

Inside the pop-up store that replacedToys R Us, the aisles are deserted. ToyCity in Rego Park, a family friendly partof Queens, New York, is one of 50 tem-porary stores that appeared across theUS a few weeks ago to fill a void createdbythetoyretailer’scollapse.

After several minutes, a shopperenters with her son. “We’ve got all thesealready,” Kinga Baginska tells him asthey browse the Lego selection, which isbeingofferedat20percentoff.

A regular at Toys R Us before it closedearlier this year, she says the pop-up —confined to a corner of the same site — isa pale imitation, with limited choice andfew opportunities for her eight-year-oldson to try before she buys. “It doesn’tcompare.”

Parents are facing the first Christmasin living memory without Toys R Us,which was the country’s pre-eminenttoy retailer before it buckled under a$5bn debt burden and declared bank-ruptcy in September 2017. Hundreds ofstores continued trading through thelast festive season, but the 70-year-oldcompanywas liquidatedthisyear.

Now, as the most important period ofthe year for retailers gets into full swing,several companies are vying for a shareof the $12bn in annual sales that Toys RUsoncecommanded.

The pop-up Toy City stores — createdby Party City, which is better known as aHalloween chain — face intense compe-tition. John Mulligan, chief operatingofficer of the S&P 500 retailer Target,told investors that it had “aggressivelychased” the toy market. Even Barnes &Noble, the lossmaking bookshop chainthat has been hard hit by the rise ofAmazon, is seeking to capitalise. “It’s asignificant opportunity,” said AllenLindstrom,chief financialofficer.

So parents have no shortage of placesto buy this year’s sought-after goodies,which include wooden Melissa & Dougdiner play sets, collectible inside-outcuddly toys called Pikmi Flips and amusical octopus for preschoolers, Rock-topus.

But none is quite the same as Toys RUs, to which visits were a family outing.Excitable children roamed the aisleswhilestaffadvisedparents.

There are signs that some of that busi-ness is gone for good. Executives at Mat-tel, the toy company behind AmericanGirl and Thomas the Tank Engine, andHasbro, maker of Play-Doh and My Lit-tle Pony, have blamed the retailer’sdemise fordecliningrevenues.

Overall, toy sales have been rising inthe run-up to the holiday season, sup-ported by a buoyant economy, but at a

slower pace than last year. Salesfor the year to the end of Septemberincreased 2 per cent to $11.6bn,according to NPD, about half the pace ofthepreviousyear.

Sales of sporting goods, cuddly toysand puzzles were muted, although dolls,actionfiguresandyouthelectronicsper-formed better. Best-selling brandsincluded Marvel Universe, Barbie andStarWars.

The big test will come over the nextfour weeks. Mass-market retailerstypically generate almost half of theirannual toy sales in the run-up toChristmas.

Much of the Toys R Us business isinevitably shifting online. Amazon wasthe retailer of choice for more than athird of respondents to a survey of 1,100former customers by Criteo, an onlineadvertisingcompany.

Traditional retailers are divingdeeper into the digital realm. Walmart,theworld’s largest retailer,has launchedwhat it calls Toy Lab, a “digital play-ground” website in which youngsterscan supposedly test toys, includingPeppa Pig play sets and Harry Potterwands.

But the Criteo survey of shoppers alsoprovides reassurance for bricks-and-mortar companies. Only 5 per cent ofrespondents said they would use ecom-merce exclusively. Almost four in fivesaid they would shop in store andonline.

“The sense of wonder that kids havewhen they look at toys is an importantpart of the shopping experience,” saidGreg Portell, retail consultant at ATKearney.

In a nod to the enduring importanceof physicality in the digital era, Amazonis mailing a print toy catalogue to mil-lions of customers in time for the festiveseason. The “Holiday of Play” bookletechoestheannualToysRUscatalogue.

Walmart is also setting aside morespace in stores, along with several rivals.Big Lots, which operates about 1,400stores, is doubling the amount of square

footage it dedicates to toys. Target has“completely remodelled” the toy sectionin more than 100 stores and added morethan 2,500 “new and exclusive” toys forChristmas. Like-for-like toy sales at Tar-getrose20percentinthethirdquarter.

Retailers seeking to evoke the mem-ory of Toys R Us include the grocer Kro-ger. It has adopted the Toys R Us mas-cot, Geoffrey the giraffe, to sell toy mer-chandiseatabout600of its stores.

Toy City, meanwhile, has imitated thebankrupt company’s colour scheme.“This year is considered to be an initialpilot test that we can learn from,” saidRyan Vero, president of retail at ownerParty City. “We’re encouraged with theearlyresults.”

For a company that can get the for-mula right, there is an opportunity toreplace Toys R Us permanently — atleast if enough families share theBaginskas’cravingforanalternative.

The Rego Park Toys R Us opened twomonths before Ms Baginska’s son wasborn.Theyweptwhenitclosed.

“It was such a big part of our lives,”she said. “You almost took it for grantedthat you had a toy store so near. Youcould justgoanytime.”

Retail. Christmas shopping

Rivals make their play for the Toys R Us marketUS groups seek share of

seasonal sales dominated by

the chain before it collapsed

Most toy customers still buyin storesHow are/will you be using yourreplacement retailer for shopping?(% who said...)

Sources: Criteo survey of 1,100 former Toys R Us customers; S&P Global Ratings

0 10 20 30 40

Only in-store

Mostly in-store

Split equally

Mostly online

Only online

Business up for grabs afterToys R Us collapseDomestic toy sales by category,Q4 2016 ($m)

0 200 600

Learning

Core toy

Seasonal

Entertainment

1000

Toy story: Toys R Us was the pre-eminent toy retailer in the US before it buckled under a $5bn debt and went bankrupt in September last year — Jonathan Weiss / Alamy

LEILA ABBOUD

Nestlé’s leadership has defended itsgovernance against criticism from anactivist investor, insisting that the col-laborative relationship between chiefexecutive and chairman was not hin-deringtheSwiss foodgroup’sgrowth.

Corporate governance practice in theUKandUSfrownsuponchiefexecutivesbecoming board chairman and oversee-ing their successors. Nestlé has had suchan arrangement, more common inEuropeancountries, fordecades.

But it has been criticised by DanielLoeb’s hedge fund Third Point, which inJune 2017 made Nestlé the largest bet inits portfolio, taking a 1.25 per cent stakenowworth$3.4bn.

Third Point has said chairman PaulBulcke, the food and drink group’s chiefexecutive from 2008 to 2016, “seemstoo comfortable with the status quo”and argued that it risked “holding upthepaceandmagnitudeofchange”.

Speaking alongside chief executiveMark Schneider, Mr Bulcke said he gavehim room to work independently andprovidesupportwhenneeded.

Mr Schneider, Nestlé’s first outsideleader since 1922, who is aiming torebuild sales growth and improve prof-itability by 2020, argued that Nestléhad been well served for decades by its

long-term mindset and governance.“Iamgrateful Icanturntosomeoneto

give me perspective,” said the Germanexecutive, who used to head healthcaregroup Fresenius. “Part of the challengeof being CEO is you deal with a lot of competing interests and there aren’tthat many people you can talk to whenyouhaveaquestion.”

Nestlé’s board, particularly its inde-pendent vice-chairman, acts as a checkon the pair, Mr Bulcke insisted. He citedNestlé’s recent decision to sell its skinhealth unit — a reversal of an invest-ment he made during his tenure — asproofhewasnotout toshieldhis legacy.

“There is nothing more stupid thanholding blindly on to something,” thechairmansaid.

But some investors have demandedfaster change. Two-thirds of respond-ents in an Exane survey in October saidthey would vote against Mr Bulcke’sreappointment, and 75 per cent wouldsupport Third Point if it nominated aboard candidate. Third Point said it had“no present plans” to oppose Mr Bul-cke. The hedge fund recently ended atough campaign at Campbell Soup withan agreement that will give it two seatson the board and a role in the choice ofitsnextchiefexecutive.

Mr Schneider said: “We are in a verydifferent spot than Campbell’s; justcompare the recent performance ofbothcompanies.”

Pressure from Third Point also led tothe break-up of US aerospace manufac-turer United Technologies into threecompanies.

Konstantin Stoev, an analyst at TRowe Price, a top 10 shareholder ofNestlé with a 0.36 per cent stake, said:“We support what Nestlé’s board andsenior management are doing, at thepacethat theyarekeeping.”

Third Point has been pushing Nestléto sell its 23 per cent stake in cosmeticsmakerL’Orealandtousetheproceedstobuy back shares. Mr Bulcke said it was“something active on the board’sagenda” and that it would “take therightactionat theright time”.Additional reporting by Eric Platt

Food & beverage

Nestlé chiefsreject activistLoeb’s claimsabout styleof governance

‘Part of the challengeof being CEO is youdeal with a lot ofcompeting interests’

ObituaryCorporateconsolidatorrenowned forhis discretion

Albert FrèreIndustrialist1926-2018

Frère: accused by some fellowcountrymen of ‘selling Belgium’

‘If we want to buildEurope, these kindsof national barriershave to come down’

DECEMBER 4 2018 Section:Companies Time: 3/12/2018 - 19:47 User: jon.wright Page Name: CONEWS4, Part,Page,Edition: LON, 20, 1


ber that it was closing the deal after lessthantwoyears.

It said the cause was Flybe rivalseasyJet and Ryanair expanding theirpresenceat theairport.

Stobart has been arguing over thedetails of the Flybe bid in court. Thecompany sued Andrew Tinkler, its ownformer chief executive, for allegedlybreachinghis fiduciaryduties.

It alleged that he wanted to derivepersonal financial benefit from theFlybe and related transactions; Mr Tin-klersaidStobartdidnothavethecashtopay for the takeover. He denied all Sto-bart’sclaims.

The company’s case finished lastweek, with judgment not expected thisyear.

Its shares were down nearly 12 percent to174.4pyesterday.

erate cash. Stobart needs to ensure thatit has sufficient resources to pay forFlybe, which has a market cap of £43m,and cutting the dividend would help. Itfailed inabidforFlybeearlier thisyear.

Stobart declined to comment on itsplans for Flybe, but said it needed toinvest in Southend airport as Ryanairwas launching flights from there nextsummer. It said it was also consideringopportunities intheenergysector.

Stobart’s pre-tax loss increased byalmost half to £17.5m in the six monthsto the end of August, capping a difficultperiod featuring a boardroom battleand a shareholder revolt against thechairman.

The company has operated a fran-chise agreement with Flybe at Southendairport and spent £18m developing andpromoting it — but announced in Octo-

JOSH SPEROTRANSPORT CORRESPONDENT

Shares in Stobart Group, the mini-conglomerateweighingabidfortheUKregional airline Flybe, fell more than 10per cent after the company cut itsfourth-quarterdividend.

The next quarter’s dividend will be 1.5pcompared with 4.5p for the past threemonths. The total payout in the 2018financial year will be 15p, down from16.5pthepreviousyear.

The company, whose assets includeSouthend airport and a biomass busi-ness, said it had paid £105m in divi-dendssinceMarch2017throughthedis-posalof“non-strategicassets”.

It concluded that it was “prudentfinancial discipline” to use future dis-posals to invest in opportunities to gen-

UK COMPANIES

If the recently resigned Brexit secretaryDominic Raab is not prevailed upon bythe Tory party — or a grateful nation —to become our next prime minister(and the odds are as short as 6-1), hecould always join the FinancialConduct Authority. He seemssufficiently quick on the uptake.

Having campaigned to leave the EUin 2016 to let Britain to “trade moreenergetically” with other countries, theOxford and Cambridge educatedlawyer confessed four weeks ago: “Ihadn’t quite understood the full extentof this, but if you look at the UK andlook at how we trade in goods, we areparticularly reliant on the Dover-Calaiscrossing.” Now, the FCA has woken upto a similar geographic reality: foreignbanks can easily move their client-handling operations and managementteams out of the UK ahead of Brexit —

and many are doing just that. It tookregulators, apparently, until last weekbefore they — um, how does thatphrase go again? — understood the fullextent of this. Perhaps they all went toOxbridge, too. In a letter sent to foreignbank chief executives dated November26, Megan Butler, FCA executivedirector for supervision, expressedconcern that “clients should not bemoved out of the UK until the FCA issatisfied that the relevant UK boardsand/or senior managers have fullyconsidered . . . whether their proposedchanges are in each client’s bestinterests”.

And she threatened to take actionagainst any bank moving clients tooquickly. “We are prepared to intervenewhere we see steps being taken whichcould expose clients or markets tounacceptable execution risks.”

For non-EU clients, having theirbanking arrangements moved out ofthe UK could add risk: financialregulation may be much the samebeyond Dover but contract law and taxrates can differ. That can add cost, too.

For EU clients, though, being movedout of the Land of Cod and Turnips to

Paris or elsewhere could only addconvenience, and heighten cuisine,surely?

It is not as if banks haven’t beentalking about this for months, either.

Bank of America and Citigroup wereearly advocates of moving clientoperations to Paris. JPMorgan Chasehas publicly said it would consider amove. Morgan Stanley plans to addjobs in the city and Goldman Sachs hassaid France is a priority in its plans.

So why is the FCA writing to CEOsonly now? People familiar with itsapproach say this is part of an ongoingprocess of looking at how banks’business plans evolve, and now —closer to Brexit — it is setting outregulatory, not political, principles.

But, if this is not political, why hasthe “Dear CEO” letter — unlike everyother missive the regulator sends out —not been published on its website?

Could it be that the number of non-EU clients being dragged out of the UKin the wider EU exodus is far higherthan anyone realised? It would not bethe first time someone looked at aBrexit road map and belatedly realisedwhich way the traffic goes.

Glencore game of clonesManagement musical chairs atGlencore might look like an exercise indistancing the company from aDepartment of Justice probe into itsKatanga Mining business in theDemocratic Republic of Congo, writesKate Burgess. In reality, the boss shuffleis the beginning of a dynastic shift fromthose in their late 50s to a newgeneration of mining top brass.

It is mostly about Ivan Glasenberg’sdeclared plan to give up as chiefexecutive in three to five years. TelisMistakidis, Mr G’s longtime associateand former board member of Katanga,is relinquishing his post to a muchyounger man in Nico Paraskevas.

At the same time, the retiring capoof ferroalloys trading is being replacedby two less hoary models. And PeterFreyberg, another of Mr G’s trustedlieutenants, and of a similar seniority,has been given a new post to watchover the industrial mining assets thatnow provide most of Glencore’searnings. He can warm the throne, onto which the soon-to-be-62-year-oldMr G can place a “mini-me” as his heir

presumptive. Prepare for a rivetingGame of Clones.

Shelling out less on pay?Back in May, Royal Dutch Shell bossBen van Beurden said having a long-term “ambition” to cut carbonemissions made more sense thansetting firm targets. And 94 per cent ofshareholders voted not to force targetsupon him. Now, six months later, hehas not only agreed to set firm three orfive-year targets but has also extendedthem to include emissions by users ofShell’s fuels, and linked them to his€9m pay. What could explain such a U-turn — in an apparently electric car?

Might it be because 25 per cent ofshareholders also voted against Mr vanBeurden’s pay last time? Not quite.

Shell was already engaging withinvestors on carbon targets, hence that94 per cent support. But investors didtheir cause no harm by reminding Mrvan Beurden who is in the driving seat.

[email protected]: [email protected]

FCA’s warning to Brexiting banks shows direction of travel

Lionel Messi, Neymar and DavidBeckham are among the top footballnames that have signed up to a newdigital service that aims to bring fanscloser to the sport’s biggest stars.

Otro, which launched as an appyesterday, is funded by 23 Capital, aLondon-based investor and financier ofsports, media and entertainmentventures. The company, which hasprovided $50m of funding, is backed byCorrum Capital and QuantumPartners, the investment fundmanaged by Soros Fund Management.

Sixteen players will provide behind-the-scenes content for Otro and sharein profits generated by the app, which

is free to download with premiumcontent available via subscription,said Jeremy Dale, its chief executive.

“Otro is Spanish for other and theidea is that this will be their otherclub,” he said. “Football is the mostloved game on the planet but fanswant a deeper connection with theirheroes. We wanted to create aplatform where they could tell theirstories for the fans.”

Mr Dale said Otro would be aimedat all football fans. “There are 1.1bnpeople who like football and have asmartphone . . . we don’t have toconvert many of them for this to bea success.” Matthew Garrahan

Good sportsFootball starsgive backingto new app

JUDITH EVANS

Some of the UK’s largest housebuildersare backing a new property portal thatwill launch next year in the latestattempt to challenge the two dominantmarket leaders,RightmoveandZoopla.

Barratt Developments, Bovis, Persim-mon and Redrow have signed up to listtheir homes with the start-upRummage4Property, as have Country-wide and about 30 other estate agencygroups.

Rummage4Property, headed by aformer analyst at Jefferies, will seek tocompete with the two biggest portals,which command the majority of bothlistingsandconsumerclicks.

Portalshavebecomecrucial tomatch-ing consumers with homes in the digitalage, but the existing players have beencriticised by some agents for their sub-scriptionfee levels.

Average revenue per advertiser atRightmove rose 8.3 per cent year onyear to £987 a month, according to fil-ings for thesixmonthsto June.

Rummage4Property believes it canoffer a listings service for just over atenth of that cost, while focusing onsearch optimisation to attract consum-ers hunting for homes in specific areas,rather than conducting advertisingcampaignstopromotethebrand.

Anthony Codling, chief executive ofRummage4Property, said: “The keyselling point is that it is much cheaperthan Rightmove, Zoopla and On-

TheMarket plc.” He added thatRummage4Property would begin bycharging a flat fee of £100 a month andwould link any changes to house priceinflation.

Property portals provide a venue foragents to list their properties but do notact as agents themselves. They differfrom online estate agencies such as Pur-plebricks, which do not run branchesbut offer similar services to a traditionalagent, including listing their propertiesonportalssuchasRightmove.

OnTheMarket, another challengerportal, listed on London’s junior marketin February and has reported averagerevenueperadvertiserof£235amonth.

Jeremy Hipkiss, group sales and mar-keting director at Barratt Develop-ments, the UK’s largest housebuilder,said: “We are always looking for ways toinvest in new and innovative digitalplatforms like Rummage4Property toeffectively target prospective custom-ers. We’re looking forward to workingwith Rummage4Property as they rollout theirpilotproject.”

Mr Codling said Rummage4Propertywould be a membership organisation,with agents and housebuilders able tovote on decisions such as any future saleof the company. It will also aggregatelinkstohomelistingselsewhereonline.

Rightmove has an operating profitmargin of 74.7 per cent, according todata from S&P Capital IQ. Mr Codlingcalled itsmargins“quite incredible”.

In its latest half-year results, issued inJuly, Rightmove said a 10 per cent rise inrevenues to £131m was partly down tomembership fee increases in its agencyandnewhomesdivisions.See Lex

Technology

Housebuildersbet on listingsportal start-upRummage4Propertyplans to charge a tenthof Rightmove’s prices

Manu Fernandez/AP

Industrials

‘Prudent’ Stobart tumbles after dividend cut

Matthew Vincent

families of soldiers killed in Iraq byroadside bombs as they travelled inpoorly protected “snatch” Land Rovers,a case that went to the Supreme Courtbefore the claimants received apologiesfromthegovernment lastyear.

Vidisha Joshi, managing partner, saidthe firmhadconsideredotheroptions toanEOT,suchasasale to,ormergerwith,a rival, but that various potential buyershadwantedtomakechanges to,orscrappartsof, thebusiness.

Patrick Allen, 68, set up the firm in1977 with Henry Hodge and Peter Jones,with the aim of taking on legal aid casesandsupportingradicalcauses.MrAllen,who over the years has acquired a 70 percent stake in the firm, said employmentownership “is really suited to law firmswhere the founder partners want tohandoverandpreparea legacy”.

firm to convert to an employee owner-ship trust, along the lines of the depart-mentstorechainJohnLewis.

The trust will manage the firm’sshares and profits on behalf of theemployees, who can receive bonuseslinked to business performance that areincometaxfreeupto£3,600annually.

Among the firm’s clients was NevilleLawrence, the father of Stephen, theblackteenagerstabbedtodeathbywhiteyouths in 1993 in one of Britain’s mostnotoriousraciallymotivatedcrimes.

Stephen’s parents waged a long cam-paign to bring his attackers to justice,including a judicial review challengingthe decision by the Crown ProsecutionService not to prosecute anyone for thekilling. In January 2012, two men werefinallyconvictedofLawrence’smurder.

Hodge Jones & Allen also represented

BARNEY THOMPSON

Alawfirmthathasplayedarole insomeof Britain’s most prominent humanrights and social justice battles is to enditspartnershipmodelandtransferown-ershiptoall230employees.

Hodge Jones & Allen, which has repre-sented survivors of the Grenfell Towerfire, military veterans affected by Gulfwar syndrome and victims of the Mar-chioness riverboat disaster, is makingthe change as its last founding partnersteps back from running the firm afterestablishing it fourdecadesago.

Most law firms are partnerships whereequity partners buy in to ownership andtake a share of the profits, which are dis-tributed according to various models.Onlyahandfulof firmshavegonepublic,whileHodgeJones&Allenis thefirstCity

Support services

Law firm transfers ownership to employees

JONATHAN ELEY

Mike Ashley, the chief executive ofSports Direct, told MPs yesterday thatthey should impose a 20 per cent tax ononline sales in attempt to save bricks-and-mortarstores.

Appearing before the housing, commu-nities and local government select com-mittee, Mr Ashley said it was pointlessdiscussing what high streets might looklike in 2030, which is the committee’sremit, since outside of London’s mainshopping district and some shoppingcentres, thesectorwasalreadyincrisis.

“The mainstream high street as wethink about it today — not Oxford Street,not Westfield — is already dead. Dead.They can’t survive. Their patient hasdied,” he said. “They are in the bottom oftheswimmingpool,dead.Thehighstreethas to change what it offers consumers.What people were doing before will notbe right now and I can guarantee will notberightinthefuture.”

The entrepreneur, who is also theowner of Newcastle United footballclub, said retailers were being hobbledby “prehistoric rents that are no longercorrect” and that councils should beable to offer five-year holidays on busi-ness rates in return for retailers match-ing that pound for pound with invest-ment in stores, with penalties to determanipulation. “People cheat,” heshrugged.“That’swhatbusinessesdo.”

He reserved special ire for what hetermed “the web boys” for hollowingout Britain’s high streets. “Debenhamsdidn’t suddenly become a bad retailer,”he said, referring to the difficulties atthe department store group in which heownsa29percentstake.

Mr Ashley proposed a 20 per cent taxon the online sales of those retailers forwhich online revenue accounted formore than 20 per cent of the total,admitting that this would hurt his owncompany. “You have to tax the internetfor the good of the high street. Tax theweb boys 20 per cent. And I’ve alreadysaid I have a £400m online business, sothat’s going to be a big bill,” he said, urg-ing lawmakers to do “something cata-clysmic” that would force even Amazonto invest inphysical retail.

His proposal was criticised by MarkPrice, the former head of Waitrose, whotweeted that it “just put legacy playerswith underinvested internet offerings atan advantage”. The British Retail Con-sortium has also rejected the idea of ablanket taxononlinesales.

In an occasionally bad-tempered ses-sion, Mr Ashley accused MPs of “show-boating” when they asked him aboutSports Direct’s use of zero-hours con-tracts. He also refused to give commit-ments regarding the number of Houseof Fraser stores that might be kept open.

“HouseofFraserhasgot tobeatotallydifferent business to what it was,” hesaid, adding that “only God” couldpromise to keep all 59 stores open. “I’mnot Father Christmas. I believe I’m avery fair guy. But you can’t get me topredict a number when there are somanyvariablesgoing in.”

Retail

Ashley callsfor onlinesales tax tohelp save thehigh street

Mike Ashley: ‘the high street as wethink about it today is already dead’

DECEMBER 4 2018 Section:Companies Time: 3/12/2018 - 19:48 User: jon.wright Page Name: CONEWS5, Part,Page,Edition: LON, 21, 1


MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

Change during previous day’s trading (%)S&P 500

0.53%

Nasdaq Composite

0.87%

Dow Jones Ind

0.62%

FTSE 100

1.18%

FTSE Eurofirst 300

1.07%

Nikkei

1.00%

Hang Seng

2.55%

FTSE All World $

1.23%

$ per €

0.265%

$ per £

-0.157%

¥ per $

0.048%

£ per €

0.451%

Oil Brent $ Sep

4.55%

Gold $

-0.71%

Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparisonAMERICAS EUROPE ASIANov 04 - - Index All World Nov 04 - Dec 03 Index All World Nov 04 - Dec 03 Index All World Nov 04 - Dec 03 Index All World Nov 04 - Dec 03 Index All World Nov 04 - Dec 03 Index All World

S&P 500 New York

2,740.372,774.81

Day 0.53% Month 1.87% Year 4.98%

Nasdaq Composite New York

7,434.06 7,394.49

Day 0.87% Month 0.49% Year 7.97%

Dow Jones Industrial New York

25,380.7425,696.55

Day 0.62% Month 1.65% Year 6.01%

S&P/TSX COMP Toronto

15,119.28 15,202.27

Day 0.03% Month 0.53% Year -5.24%

IPC Mexico City

43,942.55 42,130.07

Day 0.95% Month -7.31% Year -10.88%

Bovespa São Paulo

87,423.55

90,343.70

Day 0.94% Month 2.23% Year 25.08%

FTSE 100 London

7,094.12 7,062.41

Day 1.18% Month -0.24% Year -3.41%

FTSE Eurofirst 300 Europe

1,429.62 1,424.65

Day 1.07% Month -0.07% Year -6.13%

CAC 40 Paris

5,102.13 5,053.98

Day 1.00% Month -0.94% Year -4.94%

Xetra Dax Frankfurt

11,518.99 11,465.46

Day 1.85% Month 0.98% Year NaN%

Ibex 35 Madrid

8,993.009,179.60

Day NaN% Month NaN% Year NaN%

FTSE MIB Milan

19,390.3419,622.36

Day 2.26% Month 1.11% Year -11.32%

Nikkei 225 Tokyo

21,687.65

22,574.76

Day 1.00% Month 1.49% Year -1.07%

Hang Seng Hong Kong

26,486.35

27,182.04

Day 2.55% Month 2.53% Year -6.60%

Shanghai Composite Shanghai

2,676.48 2,654.80

Day 2.57% Month -0.81% Year -19.98%

Kospi Seoul

2,096.002,131.93

Day 1.67% Month 1.71% Year -13.88%

FTSE Straits Times Singapore

3,060.85

3,190.62

Day 2.34% Month 2.33% Year -7.55%

BSE Sensex Mumbai

34,442.05

36,241.00

Day 0.13% Month 3.51% Year 10.38%

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 32172.54 31482.58Australia All Ordinaries 5856.30 5749.30

S&P/ASX 200 5771.20 5667.20S&P/ASX 200 Res 4008.10 3864.30

Austria ATX 3111.25 3074.94Belgium BEL 20 3526.67 3487.89

BEL Mid 6800.03 6777.27Brazil Bovespa 90343.70 89504.03Canada S&P/TSX 60 913.31 913.29

S&P/TSX Comp 15202.27 15197.82S&P/TSX Div Met & Min 776.27 768.19

Chile S&P/CLX IGPA Gen 26180.34 25902.57China FTSE A200 8623.48 8393.88

FTSE B35 9000.71 8988.96Shanghai A 2779.99 2710.17Shanghai B 284.32 279.42Shanghai Comp 2654.80 2588.19Shenzhen A 1444.71 1398.85Shenzhen B 875.72 858.96

Colombia COLCAP 1379.24 1386.80Croatia CROBEX 1732.12 1729.38

Cyprus CSE M&P Gen 68.46 68.68Czech Republic PX 1073.65 1068.65Denmark OMXC Copenahgen 20 930.52 928.23Egypt EGX 30 12934.44 13150.08Estonia OMX Tallinn 1217.14 1226.97Finland OMX Helsinki General 9192.09 9015.57France CAC 40 5053.98 5003.91

SBF 120 4028.10 3991.41Germany M-DAX 23768.29 23453.53

TecDAX 2646.32 2591.01XETRA Dax 11465.46 11257.24

Greece Athens Gen 659.72 630.23FTSE/ASE 20 1734.67 1657.17

Hong Kong Hang Seng 27182.04 26506.75HS China Enterprise 10882.16 10621.74HSCC Red Chip 4391.20 4338.56

Hungary Bux 40579.82 40109.37India BSE Sensex 36241.00 36194.30

Nifty 500 9126.90 9109.15Indonesia Jakarta Comp 6118.32 6056.12Ireland ISEQ Overall 5847.62 5818.65Israel Tel Aviv 125 1489.43 1468.56

Italy FTSE Italia All-Share 21525.70 21057.99FTSE Italia Mid Cap 35947.58 35240.38FTSE MIB 19622.36 19188.97

Japan 2nd Section 7180.56 7105.24Nikkei 225 22574.76 22351.06S&P Topix 150 1373.44 1355.31Topix 1689.05 1667.45

Jordan Amman SE 1860.60 1935.94Kenya NSE 20 2797.44 2970.30Kuwait KSX Market Index 6633.44 6603.51Latvia OMX Riga 957.58 943.35Lithuania OMX Vilnius 642.70 637.64Luxembourg LuxX 1471.12 1453.05Malaysia FTSE Bursa KLCI 1699.72 1679.86Mexico IPC 42130.07 41732.78Morocco MASI 11229.28 11202.53Netherlands AEX 523.87 519.37

AEX All Share 770.16 764.44New Zealand NZX 50 8876.09 8823.54Nigeria SE All Share 30874.17 30611.55Norway Oslo All Share 988.19 971.01Pakistan KSE 100 40496.03 40704.80

Philippines Manila Comp 7532.90 7367.85Poland Wig 59245.17 58203.39Portugal PSI 20 4989.02 4914.13

PSI General 2903.72 2858.63Romania BET Index 8751.93 8665.36Russia Micex Index 2441.19 2392.50

RTX 1154.18 1126.14Saudi-Arabia TADAWUL All Share Index 7916.79 7845.02Singapore FTSE Straits Times 3190.62 3117.61Slovakia SAX 331.00 329.99Slovenia SBI TOP 818.85 822.60South Africa FTSE/JSE All Share 52079.22 50663.94

FTSE/JSE Res 20 38362.40 36456.57FTSE/JSE Top 40 46052.36 44656.89

South Korea Kospi 2131.93 2096.86Kospi 200 276.18 271.35

Spain IBEX 35 9179.60 9077.20Sri Lanka CSE All Share 6025.20 6019.33Sweden OMX Stockholm 30 1534.81 1514.63

OMX Stockholm AS 564.82 558.50Switzerland SMI Index 9106.56 9037.76

Taiwan Weighted Pr 10137.87 9888.03Thailand Bangkok SET 1672.61 1641.80Turkey BIST 100 116840.94 116315.98UAE Abu Dhabi General Index 4770.08 4881.04UK FT 30 2946.00 2980.20

FTSE 100 7062.41 6980.24FTSE 4Good UK 6416.05 6358.05FTSE All Share 3863.09 3823.34FTSE techMARK 100 4569.93 4540.44

USA DJ Composite 8581.94 8545.83DJ Industrial 25696.55 25538.46DJ Transport 10831.71 10820.20DJ Utilities 743.64 741.92Nasdaq 100 7025.80 6949.01Nasdaq Cmp 7394.49 7330.54NYSE Comp 12508.89 12457.55S&P 500 2774.81 2760.17Wilshire 5000 28583.11 28448.87

Venezuela IBC 818.18 739.62Vietnam VNI 951.59 926.54

Cross-Border DJ Global Titans ($) 309.19 306.08Euro Stoxx 50 (Eur) 3218.06 3173.13Euronext 100 ID 983.20 973.20FTSE 4Good Global ($) 6685.63 6632.24FTSE All World ($) 328.09 324.09FTSE E300 1424.65 1409.60FTSE Eurotop 100 2764.29 2736.46FTSE Global 100 ($) 1698.72 1676.91FTSE Gold Min ($) 1234.17 1245.26FTSE Latibex Top (Eur) 4440.00 4432.20FTSE Multinationals ($) 1891.90 1885.28FTSE World ($) 582.55 575.66FTSEurofirst 100 (Eur) 3969.77 3929.64FTSEurofirst 80 (Eur) 4497.52 4440.10MSCI ACWI Fr ($) 490.86 489.66MSCI All World ($) 2041.36 2034.89MSCI Europe (Eur) 1484.89 1489.61MSCI Pacific ($) 2584.34 2591.84S&P Euro (Eur) 1500.80 1481.82S&P Europe 350 (Eur) 1463.91 1449.83S&P Global 1200 ($) 2294.38 2273.29Stoxx 50 (Eur) 2959.86 2934.21

(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 LOSERSAMERICA LONDON EURO MARKETS TOKYOACTIVE STOCKS stock close Day's

traded m's price changeAmazon.com 71.3 1757.55 67.38Apple 37.1 181.41 2.83Aetna 25.2 212.70 0.70Nvidia 20.2 168.47 5.04Advanced Micro Devices 19.5 23.31 2.01Netflix 18.6 293.54 7.41Microsoft 18.4 111.34 0.45Facebook 16.4 143.18 2.57Boeing (the) 12.8 359.17 12.41Alphabet 11.9 1122.63 12.98

BIGGEST MOVERS Close Day's Day'sprice change chng%

UpsAdvanced Micro Devices 23.31 2.01 9.44Wynn Resorts 119.06 9.66 8.83Twitter 33.39 1.94 6.15Regeneron Pharmaceuticals 387.09 21.44 5.86yte 67.96 3.71 5.77

DownsDiscovery 28.04 -2.68 -8.72Discovery 25.64 -2.29 -8.20Hollyfrontier 58.04 -4.43 -7.09Take-two Interactive Software 102.24 -7.43 -6.78Activision Blizzard 47.38 -2.50 -5.01

ACTIVE STOCKS stock close Day'straded m's price change

Glaxosmithkline 370.1 1498.00 -123.60Bp 335.6 532.00 12.00Rio Tinto 223.3 3701.50 142.50Glencore 175.6 300.80 10.65Bhp 171.1 1590.00 88.40Hsbc Holdings 152.3 679.90 15.60Vodafone 145.7 168.06 -0.88Shire 132.4 4594.00 44.00British American Tobacco 131.4 2783.00 33.00Royal Dutch Shell 129.7 2460.50 65.00


UpsDunelm 618.50 76.50 14.11Antofagasta 863.20 62.80 7.85Ferrexpo 188.90 13.60 7.76Evraz 488.80 34.70 7.64Kaz Minerals 590.00 38.80 7.04

DownsThomas Cook 23.64 -6.46 -21.46Ted Baker 1550.00 -276.00 -15.12Kier 446.00 -62.00 -12.20Stobart Ld 174.40 -23.20 -11.74Grainger 229.00 -24.20 -9.56


Daimler Ag Na O.n. 398.6 51.95 2.26Total 378.5 49.82 0.65Lvmh 364.2 265.25 12.70Bay.motoren Werke Ag St 355.0 75.66 3.45Asml Holding 320.0 154.04 4.94Intesa Sanpaolo 310.6 2.11 0.06Basf Se Na O.n. 287.2 65.34 0.97Volkswagen Ag Vzo O.n. 279.0 153.18 4.28Siemens Ag Na 273.0 104.04 1.64Royal Dutch Shella 271.5 27.11 0.41


UpsKering 413.50 29.50 7.68Cnh Industrial 9.15 0.55 6.40Stmicroelectronics 13.71 0.78 6.03Saipem 4.08 0.21 5.51Dassault Systemes 111.65 5.65 5.33

DownsCarrefour 14.98 -0.92 -5.79Casino Guichard 36.94 -1.41 -3.68Coloplast B A/s 81.80 -2.44 -2.90Lindt Ps 5866.76 -154.50 -2.57Hennes & Mauritz Ab, H & M Ser. B 15.99 -0.37 -2.25


Softbank . 697.1 9653.00 127.00Toyota Motor 652.8 7032.00 229.00Sony 402.1 6122.00 185.00Fast Retailing Co., 366.3 58580.00 -460.00Mitsubishi Ufj Fin,. 337.5 630.00 5.50Takeda Pharmaceutical 330.4 4230.00 -25.00Fanuc 238.1 19595.00 205.00Shiseido , 223.5 7468.00 244.00Tokyo Electron 210.5 16015.00 140.00Mizuho Fin,. 203.2 188.50 0.20


UpsDainippon Screen Mfg.co., 6040.00 360.00 6.34Toho Z Co., 4030.00 200.00 5.22Thb Japan Steel Works, 2166.00 92.00 4.44Nippon Yusen Kabushiki Kaisha 2011.00 84.00 4.36Tokai Carbon Co., 1644.00 68.00 4.31

DownsKikkoman 6470.00 -150.00 -2.27Taiheiyo Cement 3760.00 -80.00 -2.08Chugai Pharmaceutical Co., 7620.00 -150.00 -1.93Shionogi & Co., 7374.00 -134.00 -1.78Nippon Kayaku Co., 1471.00 -24.00 -1.61

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

Dec 03 %Chg %ChgFTSE 100 price(p) week ytdWinnersAnglo American 1675.40 7.2 5.0Antofagasta 863.20 7.1 -13.8Coca-cola Hbc Ag 2422.00 6.7 1.8Wood (john) 674.40 6.6 3.0Ferguson 5199.00 6.5 -7.7Ocado 836.60 5.9 113.1Rolls-royce Holdings 883.00 5.2 4.8Intertek 4876.00 5.0 -4.8Glencore 300.80 4.9 -23.7Halma 1411.00 4.8 12.5Bhp 1590.00 4.6 4.0Centrica 138.55 4.3 -1.9

LosersPersimmon 1893.00 -12.8 -31.2Taylor Wimpey 133.65 -11.6 -35.8Easyjet 1114.50 -10.0 -25.7Barratt Developments 462.00 -9.1 -29.3British Land 557.20 -9.0 -18.6Land Securities 806.60 -7.8 -18.9Berkeley Holdings (the) 3248.00 -7.7 -23.1Tui Ag 1161.50 -7.1 -24.9Nmc Health 3354.00 -6.8 16.9Severn Trent 1819.00 -6.5 -14.9Itv 143.60 -6.4 -14.4Next 4857.00 -5.7 7.9

Dec 03 %Chg %ChgFTSE 250 price(p) week ytdWinnersGreggs 1390.00 12.4 0.7Renishaw 4404.00 11.8 -15.0Rhi Magnesita N.v. 3754.00 11.1 -2.2Udg Healthcare 679.00 9.4 -18.9Vivo Energy 116.80 9.2 -Games Workshop 3190.00 8.9 25.8Kaz Minerals 590.00 8.4 -34.0Dunelm 618.50 8.3 -9.2Aveva 2612.00 7.8 -4.5Britvic 858.50 7.5 6.8Polar Capital Technology Trust 1222.00 7.2 7.8Worldwide Healthcare Trust 2750.00 6.8 9.1

LosersThomas Cook 23.64 -51.3 -81.0Kier 446.00 -42.3 -59.2Intu Properties 113.30 -40.4 -54.9Ted Baker 1550.00 -15.3 -43.9Stobart Ld 174.40 -13.7 -38.5Grainger 229.00 -11.8 -19.6Galliford Try 700.00 -11.6 -45.7Bellway 2561.00 -11.5 -29.2Rpc 669.60 -11.5 -22.1Hammerson 377.50 -10.1 -30.8Keller 563.00 -9.3 -41.9Ibstock 213.00 -8.9 -19.3

Dec 03 %Chg %ChgFTSE SmallCap price(p) week ytdWinnersAllied Minds 74.00 89.5 -55.2Pets At Home 130.00 13.4 -23.8Paypoint 882.00 12.1 -4.2Hostelworld 205.50 11.0 -45.9Huntsworth 112.50 10.3 37.9Alfa Fin Software Holdings 139.60 10.3 -74.2Oxford Instruments 937.00 9.6 13.4Dp Eurasia N.v. 125.00 9.5 -41.7Allianz Technology Trust 1380.00 9.1 19.5Biotech Growth Trust (the) 740.00 8.2 -4.9Baillie Gifford Shin Nippon 197.60 8.0 10.9Xp Power 2320.00 7.9 -32.8

LosersJpmorgan Smaller Companies Investment Trust 202.00 -79.9 -7.3Restaurant 146.90 -36.5 -31.9Mccoll's Retail 82.90 -33.7 -68.6Dignity 758.50 -24.9 -58.3Nostrum Oil & Gas 129.60 -24.7 -59.8Interserve 25.00 -23.1 -74.8Circassia Pharmaceuticals 50.50 -22.3 -48.7Mitie 135.40 -10.9 -29.1The Gym 274.50 -8.5 24.8Costain 353.00 -7.2 -23.6Biffa 199.80 -7.1 -22.1Low & Bonar 25.00 -7.1 -52.8

Dec 03 %Chg %ChgIndustry Sectors price(p) week ytdWinnersElectronic & Electrical Equip. 6648.81 5.8 1.5Oil Equipment & Services 13193.11 4.9 2.5Mining 16910.73 4.1 -9.3Industrial Engineering 11126.95 3.7 -Industrial Metals 4513.46 2.7 17.7Equity Investment Instruments 9746.75 2.3 0.7Support Services 7554.83 2.3 -5.7Oil & Gas Producers 8919.61 2.2 -1.0Tobacco 32583.79 2.0 -Mobile Telecommunications 3725.03 1.9 -Forestry & Paper 19987.69 1.1 -3.6Beverages 22506.53 1.1 3.7

LosersReal Estate Investment Trusts 2700.14 -7.0 -Industrial Transportation 2369.53 -5.0 -Household Goods 15589.20 -5.0 -Real Estate & Investment Servic 2489.94 -3.3 -Electricity 6655.12 -2.9 -13.9Food Producers 7211.73 -2.3 -General Retailers 2126.49 -1.9 -Travel & Leisure 9304.28 -1.6 -8.5Pharmaceuticals & Biotech. 14765.52 -1.3 15.4Chemicals 14001.90 -1.1 -0.9Fixed Line Telecommunication 2968.84 -1.0 -5.3General Financial 9748.47 -0.8 -

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

CURRENCIES

DOLLAR EURO POUNDClosing Day's Closing Day's Closing Day's

Dec 3 Currency Mid Change Mid Change Mid Change






Dec 3 Currency Mid Change Mid Change Mid ChangeArgentina Argentine Peso 36.7350 -1.0005 41.6851 -1.0408 46.7855 -1.3613Australia Australian Dollar 1.3592 -0.0102 1.5423 -0.0082 1.7310 -0.0162Bahrain Bahrainin Dinar 0.3770 0.0001 0.4277 0.0010 0.4801 -0.0008Bolivia Bolivian Boliviano 6.9100 - 7.8411 0.0173 8.8005 -0.0159Brazil Brazilian Real 3.8284 -0.0464 4.3443 -0.0429 4.8758 -0.0680Canada Canadian Dollar 1.3192 -0.0100 1.4969 -0.0080 1.6801 -0.0157Chile Chilean Peso 667.9900 -4.9750 758.0029 -3.9594 850.7476 -7.8890China Chinese Yuan 6.8882 -0.0556 7.8164 -0.0457 8.7728 -0.0868Colombia Colombian Peso 3198.9900 -38.8550 3630.0605 -35.9780 4074.2126 -56.9570Costa Rica Costa Rican Colon 600.5950 0.9700 681.5263 2.6030 764.9138 -0.1482Czech Republic Czech Koruna 22.8284 -0.1034 25.9045 -0.0599 29.0740 -0.1847Denmark Danish Krone 6.5761 -0.0153 7.4622 -0.0008 8.3753 -0.0347Egypt Egyptian Pound 17.9110 0.0600 20.3245 0.1128 22.8113 0.0352Hong Kong Hong Kong Dollar 7.8156 -0.0101 8.8688 0.0081 9.9539 -0.0310Hungary Hungarian Forint 284.2961 -1.8113 322.6055 -1.3385 362.0776 -2.9670India Indian Rupee 70.3725 0.6775 79.8553 0.9434 89.6259 0.7020

Indonesia Indonesian Rupiah 14245.0000 -57.5000 16164.5421 -29.4227 18142.3668 -106.2080Israel Israeli Shekel 3.7230 -0.0060 4.2247 0.0026 4.7416 -0.0162Japan Japanese Yen 113.6050 0.0550 128.9135 0.3469 144.6866 -0.1920..One Month 113.6046 0.0542 128.9135 0.3469 144.6864 -0.1924..Three Month 113.6041 0.0532 128.9135 0.3469 144.6861 -0.1929..One Year 113.6014 0.0477 128.9136 0.3471 144.6864 -0.1942Kenya Kenyan Shilling 102.6500 0.1500 116.4823 0.4270 130.7344 -0.0455Kuwait Kuwaiti Dinar 0.3043 -0.0001 0.3452 0.0007 0.3875 -0.0008Malaysia Malaysian Ringgit 4.1655 -0.0190 4.7268 -0.0111 5.3052 -0.0339Mexico Mexican Peson 20.2645 -0.0812 22.9952 -0.0412 25.8087 -0.1504New Zealand New Zealand Dollar 1.4424 -0.0134 1.6367 -0.0116 1.8370 -0.0205Nigeria Nigerian Naira 363.0000 -1.0000 411.9149 -0.2228 462.3144 -2.1135Norway Norwegian Krone 8.5388 -0.0644 9.6895 -0.0515 10.8750 -0.1019Pakistan Pakistani Rupee 137.4000 0.6500 155.9149 1.0802 174.9917 0.5123Peru Peruvian Nuevo Sol 3.3755 -0.0080 3.8304 -0.0006 4.2990 -0.0180Philippines Philippine Peso 52.3150 -0.1050 59.3645 0.0122 66.6280 -0.2547

Poland Polish Zloty 3.7693 -0.0212 4.2772 -0.0145 4.8005 -0.0357Romania Romanian Leu 4.0970 -0.0102 4.6491 -0.0013 5.2179 -0.0225Russia Russian Ruble 66.6507 -0.3019 75.6319 -0.1748 84.8858 -0.5389Saudi Arabia Saudi Riyal 3.7518 0.0000 4.2574 0.0095 4.7783 -0.0086Singapore Singapore Dollar 1.3670 -0.0050 1.5511 -0.0023 1.7409 -0.0096South Africa South African Rand 13.6963 -0.1700 15.5418 -0.1582 17.4435 -0.2485South Korea South Korean Won 1110.6500 -10.3000 1260.3122 -8.8794 1414.5166 -15.7045Sweden Swedish Krona 9.0286 -0.0726 10.2452 -0.0595 11.4987 -0.1134Switzerland Swiss Franc 0.9982 -0.0012 1.1327 0.0011 1.2712 -0.0038Taiwan New Taiwan Dollar 30.7370 -0.0645 34.8789 0.0040 39.1464 -0.1532Thailand Thai Baht 32.7650 -0.1225 37.1801 -0.0566 41.7293 -0.2319Tunisia Tunisian Dinar 2.9447 0.0017 3.3414 0.0092 3.7503 -0.0047Turkey Turkish Lira 5.2773 0.0280 5.9884 0.0449 6.7211 0.0235United Arab Emirates UAE Dirham 3.6732 - 4.1681 0.0092 4.6781 -0.0085United Kingdom Pound Sterling 0.7852 0.0014 0.8910 0.0036 - -..One Month 0.7855 0.0015 0.8909 0.0036 - -

..Three Month 0.7858 0.0014 0.8907 0.0036 - -

..One Year 0.7876 0.0015 0.8897 0.0036 - -United States United States Dollar - - 1.1348 0.0025 1.2736 -0.0023..One Month - - 1.1344 -0.1412 1.2739 -0.0023..Three Month - - 1.1338 -0.1412 1.2742 -0.0023..One Year - - 1.1309 -0.1412 1.2760 -0.0023Venezuela Venezuelan Bolivar Fuerte - - - - - -Vietnam Vietnamese Dong 23301.0000 -16.5000 26440.8967 39.7202 29676.0562 -74.7806European Union Euro 0.8812 -0.0020 - - 1.1224 -0.0045..One Month 0.8809 -0.0020 - - 1.1222 -0.0045..Three Month 0.8803 -0.0020 - - 1.1221 -0.0045..One Year 0.8774 -0.0020 - - 1.1211 -0.0045

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

FTSE ACTUARIES SHARE INDICES UK SERIESwww.ft.com/equities

Produced in conjunction with the Institute and Faculty of Actuaries£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D TotalDec 03 chge% Index Nov 30 Nov 29 ago yield% Cover ratio adj Return

FTSE 100 (100) 7062.41 1.18 6179.40 6980.24 7038.95 7338.97 4.32 1.96 11.80 301.27 6238.43FTSE 250 (250) 18563.85 0.45 16242.81 18480.83 18609.03 19935.95 3.14 2.13 14.93 507.78 13998.24FTSE 250 ex Inv Co (196) 19509.45 0.31 17070.18 19449.29 19621.80 21353.76 3.33 1.88 15.99 555.42 15019.92FTSE 350 (350) 3913.54 1.06 3424.23 3872.47 3904.12 4088.32 4.13 1.98 12.20 157.11 6921.11FTSE 350 ex Investment Trusts (295) 3868.78 1.06 3385.06 3828.15 3860.61 4050.78 4.20 1.94 12.29 157.82 3527.13FTSE 350 Higher Yield (103) 3558.62 0.87 3113.69 3527.86 3550.55 3764.80 5.69 1.78 9.89 193.14 6723.46FTSE 350 Lower Yield (247) 3908.20 1.27 3419.56 3859.08 3898.21 4026.62 2.39 2.53 16.54 96.40 4423.92FTSE SmallCap (284) 5409.50 0.48 4733.15 5383.54 5379.55 5764.62 3.61 1.92 14.41 172.97 8088.88FTSE SmallCap ex Inv Co (158) 4456.14 -0.29 3898.99 4469.17 4462.34 5023.74 3.89 1.50 17.18 148.10 7004.36FTSE All-Share (634) 3863.09 1.04 3380.09 3823.34 3853.36 4038.50 4.11 1.98 12.27 153.94 6904.61FTSE All-Share ex Inv Co (453) 3792.31 1.03 3318.15 3753.53 3784.57 3976.88 4.19 1.93 12.36 154.15 3512.82FTSE All-Share ex Multinationals (564) 1120.24 0.27 812.39 1117.22 1128.94 1226.03 4.04 1.64 15.08 41.53 2104.83FTSE Fledgling (100) 10517.37 0.26 9202.38 10490.20 10425.55 10724.19 3.14 1.62 19.68 272.73 20479.18FTSE Fledgling ex Inv Co (50) 15554.45 -0.53 13609.68 15638.01 15405.71 15421.89 3.53 -0.54 -52.13 459.24 29726.88FTSE All-Small (384) 3779.68 0.47 3307.11 3762.00 3758.11 4018.54 3.59 1.91 14.62 119.64 7253.29FTSE All-Small ex Inv Co (208) 3367.88 -0.30 2946.79 3378.07 3371.03 3777.41 3.88 1.42 18.19 111.40 6707.04FTSE AIM All-Share (805) 938.27 0.87 820.95 930.17 932.39 1024.46 1.53 1.30 50.24 12.64 1051.86

FTSE Sector IndicesOil & Gas (15) 9295.40 2.36 8133.19 9081.28 9119.88 8973.44 5.31 1.23 15.35 493.65 9333.55Oil & Gas Producers (10) 8949.44 2.31 7830.49 8747.72 8782.98 8630.14 5.34 1.24 15.13 478.77 9310.47Oil Equipment Services & Distribution (5)13796.61 4.78 12071.62 13167.37 13358.18 13961.12 3.58 0.61 45.81 487.46 11252.56Basic Materials (28) 5788.79 4.15 5065.02 5558.16 5654.68 5668.53 4.97 2.42 8.31 287.69 6307.70Chemicals (8) 14914.92 1.44 13050.11 14702.87 14905.38 14573.70 2.12 2.37 19.93 318.02 13748.95Forestry & Paper (1) 21810.24 3.86 19083.30 20999.50 21300.45 20204.32 3.21 3.13 9.95 700.08 24688.65Industrial Metals & Mining (2) 4861.71 7.66 4253.85 4515.69 4626.67 3557.84 14.26 1.45 4.83 691.01 5207.15Mining (17) 16154.51 4.43 14134.71 15468.49 15744.03 15941.02 5.21 2.46 7.81 840.82 9245.35Industrials (105) 4970.78 1.91 4349.28 4877.86 4929.21 5384.92 2.77 1.78 20.22 124.90 5304.99Construction & Materials (15) 5597.64 2.27 4897.76 5473.36 5672.40 6647.95 3.00 0.39 85.69 169.84 6159.10Aerospace & Defense (9) 4920.04 2.45 4304.89 4802.17 4790.60 4981.91 2.55 3.46 11.33 110.59 5439.94General Industrials (8) 4365.64 1.71 3819.80 4292.09 4339.00 5099.60 3.50 1.17 24.50 148.48 5191.89Electronic & Electrical Equipment (10) 7877.55 2.59 6892.62 7678.63 7673.49 8101.78 1.77 2.23 25.36 122.44 7364.09Industrial Engineering (11) 12326.67 2.52 10785.47 12023.73 12039.32 13362.03 2.44 1.71 23.99 294.92 15503.39Industrial Transportation (6) 3803.80 -2.53 3328.21 3902.70 3932.71 5088.69 5.67 0.79 22.30 170.22 3598.65Support Services (46) 7365.02 1.75 6444.17 7238.39 7311.96 7734.57 2.62 1.95 19.63 169.82 7904.61Consumer Goods (42) 18336.85 0.54 16044.19 18238.33 18404.55 21446.06 3.98 4.53 5.55 714.33 14293.59Automobiles & Parts (1) 7885.57 1.09 6899.63 7800.21 7544.13 7120.64 1.98 0.00 0.00 291.29 7896.13Beverages (5) 22535.20 0.25 19717.62 22479.44 22538.50 20771.33 2.32 1.83 23.57 508.38 16513.62Food Producers (12) 7275.43 -0.92 6365.79 7342.80 7351.63 8424.59 2.43 2.15 19.20 118.19 6447.44Household Goods & Home Construction (15)13061.35 0.76 11428.29 12963.45 13236.25 14549.40 4.61 2.26 9.59 596.74 9816.80Leisure Goods (2) 9783.19 3.44 8560.00 9458.05 9305.85 8467.88 4.90 1.34 15.23 407.87 9547.50Personal Goods (5) 31889.91 0.45 27902.71 31747.32 31945.96 31568.88 3.03 2.82 11.69 941.32 22519.85Tobacco (2) 32583.84 0.93 28509.88 32282.07 32577.38 52185.25 5.86 7.72 2.21 1910.70 22580.11Health Care (21) 10708.56 -2.22 9369.67 10951.16 10913.38 9051.73 3.20 1.08 28.88 339.84 8687.67Health Care Equipment & Services (9) 7321.63 0.74 6406.21 7268.09 7349.41 7691.27 1.79 2.83 19.77 125.36 6493.91Pharmaceuticals & Biotechnology (12)14656.93 -2.52 12824.37 15036.08 14961.37 12064.16 3.36 0.98 30.38 488.07 10640.58Consumer Services (91) 4981.72 0.88 4358.86 4938.50 5001.41 4971.44 2.99 1.93 17.27 137.50 4866.16Food & Drug Retailers (6) 3660.99 -0.04 3203.25 3662.53 3717.22 3215.31 2.03 2.07 23.80 73.06 4398.47General Retailers (27) 2071.64 -0.25 1812.62 2076.79 2123.90 2440.77 3.89 1.40 18.36 71.12 2488.18Media (19) 8104.43 1.62 7091.14 7975.04 8077.60 7453.41 3.11 2.12 15.19 212.53 5203.19Travel & Leisure (39) 9101.04 1.01 7963.14 9009.60 9085.19 9448.97 2.90 2.01 17.15 261.97 8976.45Telecommunications (6) 2642.97 -0.89 2312.52 2666.78 2656.47 3246.86 7.10 0.77 18.21 171.77 3278.29Fixed Line Telecommunications (4) 3014.27 -1.92 2637.40 3073.27 3072.46 3058.43 5.83 1.44 11.88 122.25 2991.84Mobile Telecommunications (2) 3719.39 -0.37 3254.36 3733.32 3712.08 4965.84 7.72 0.52 24.79 287.32 4186.40Utilities (8) 6759.39 -0.52 5914.26 6794.72 6821.49 7402.49 6.40 1.27 12.31 423.31 8410.15Electricity (3) 6640.01 -1.22 5809.81 6722.33 6736.96 7799.64 7.95 0.38 32.88 532.33 10600.89Gas Water & Multiutilities (5) 6426.54 -0.33 5623.03 6447.88 6476.34 6898.41 5.99 1.58 10.55 373.00 7968.71Financials (303) 4764.71 1.16 4168.98 4710.29 4753.31 5186.53 4.12 1.78 13.67 189.82 4663.09Banks (10) 3869.16 1.78 3385.40 3801.53 3846.13 4359.35 4.69 1.34 15.88 182.70 3048.46Nonlife Insurance (10) 3662.68 0.08 3204.73 3659.57 3665.71 3527.60 3.43 1.46 20.00 124.49 6773.37Life Insurance/Assurance (7) 7490.47 0.95 6553.94 7419.65 7486.28 8712.00 4.70 1.47 14.48 345.84 7760.85Real Estate Investment & Services (18) 2461.89 0.08 2154.08 2460.02 2485.28 2673.33 2.65 2.94 12.83 56.27 6803.12Real Estate Investment Trusts (39) 2468.15 -0.83 2159.56 2488.90 2522.99 2651.82 4.60 1.59 13.68 109.61 3271.06General Financial (38) 8337.05 1.16 7294.67 8241.29 8368.01 9123.00 4.08 2.21 11.11 270.15 10000.40Equity Investment Instruments (181) 10061.72 1.16 8803.70 9946.07 9942.83 9883.28 2.54 3.67 10.72 244.37 5709.23Non Financials (331) 4578.29 1.00 4005.87 4532.99 4566.56 4717.41 4.11 2.05 11.85 182.46 7170.46Technology (15) 1808.93 0.29 1582.76 1803.67 1837.75 2232.27 2.94 1.64 20.70 49.73 2409.17Software & Computer Services (13) 2009.96 0.31 1758.65 2003.65 2045.26 2569.73 2.98 1.67 20.17 57.18 2830.20Technology Hardware & Equipment (2) 2735.89 -0.23 2393.82 2742.14 2678.44 1903.42 2.08 0.94 51.24 39.43 3281.17

Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/dayFTSE 100 7084.58 7134.12 7139.44 7132.82 7117.00 7094.98 7098.87 7084.25 7057.35 7145.34 7053.45FTSE 250 18720.44 18752.39 18706.79 18670.47 18646.21 18627.24 18640.85 18620.04 18572.41 18773.96 18563.85FTSE SmallCap 5394.90 5414.03 5418.28 5414.09 5416.20 5421.86 5416.17 5420.24 5414.11 5427.17 5394.90FTSE All-Share 3877.54 3901.02 3902.02 3897.82 3890.10 3879.87 3881.88 3874.89 3861.24 3904.74 3860.13Time of FTSE 100 Day's high:10:30:15 Day's Low15:52:30 FTSE 100 2010/11 High: 7877.45(22/05/2018) Low: 6888.69(26/03/2018)Time of FTSE All-Share Day's high:10:30:00 Day's Low15:52:00 FTSE 100 2010/11 High: 4324.41(22/05/2018) Low: 3800.41(26/10/2018)Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of theLondon 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.

FT 30 INDEX

Dec 03 Nov 30 Nov 29 Nov 28 Nov 27 Yr Ago High LowFT 30 2946.00 2980.20 2980.90 2993.00 2996.60 0.00 3384.10 2883.20FT 30 Div Yield 2.05 2.04 2.05 2.03 2.03 0.00 3.93 2.74P/E Ratio net 21.72 21.88 21.81 21.94 21.93 0.00 19.44 14.26FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35FT 30 hourly changes

8 9 10 11 12 13 14 15 16 High Low2980.2 2959.1 2954.4 2950.1 2951.4 2948.2 2949.3 2953.5 2949.4 2980.2 2939.6

FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30

FX: EFFECTIVE INDICES

Nov 30 Nov 29 Mnth Ago Dec 03 Nov 30 Mnth Ago

Australia - - -Canada - - -Denmark - - -Japan - - -New Zealand - - -Norway - - -

Sweden - - -Switzerland - - -UK 77.57 77.40 77.77USA - - -Euro - - -

Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100.Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

FTSE SECTORS: LEADERS & LAGGARDS

Year to date percentage changesTech Hardware & Eq 46.80Pharmace & Biotech 17.89Health Care 15.10Industrial Metals & 8.90Food & Drug Retailer 7.45Automobiles & Parts 4.23Media 3.93Beverages 3.07Personal Goods 0.34Nonlife Insurance -0.69Equity Invest Instr -1.54Chemicals -2.36Oil Equipment & Serv -3.06Oil & Gas -3.44Oil & Gas Producers -3.45Fixed Line Telecomms -4.05Consumer Services -4.66

Electronic & Elec Eq -4.85Leisure Goods -5.26Aerospace & Defense -5.43Gas Water & Multi -5.69Health Care Eq & Srv -6.11Utilities -7.36Forestry & Paper -7.48NON FINANCIALS Index -8.13Support Services -8.16FTSE SmallCap Index -8.94FTSE 100 Index -9.20FTSE All{HY-}Share Index -9.44Travel & Leisure -9.68FTSE 250 Index -10.83Industrials -11.26Basic Materials -12.02Food Producers -12.53Industrial Eng -12.56

Electricity -12.95Financials -13.00Financial Services -13.05Real Est Invest & Tr -13.05Mining -13.59Real Est Invest & Se -14.89General Retailers -16.34Banks -16.64Household Goods & Ho -16.90Life Insurance -18.41Consumer Goods -18.44Construct & Material -20.29Telecommunications -21.18Technology -21.65Software & Comp Serv -24.58Industrial Transport -26.06Mobile Telecomms -27.72Tobacco -40.76

FTSE GLOBAL EQUITY INDEX SERIES

Nov 22 No of US $ Day Mth YTD Total YTD Gr DivRegions & countries stocks indices % % % retn % Yield

Nov 22 No of US $ Day Mth YTD Total YTD Gr DivSectors stocks indices % % % retn % Yield

FTSE Global All Cap 7877 539.45 0.0 -3.1 -7.3 792.40 -5.3 2.6FTSE Global Large Cap 1441 477.45 0.0 -3.2 -6.7 720.79 -4.5 2.7FTSE Global Mid Cap 1769 715.41 0.0 -2.1 -8.9 992.91 -7.1 2.3FTSE Global Small Cap 4667 750.64 0.1 -3.3 -9.2 1006.03 -7.7 2.1FTSE All-World 3210 315.41 0.0 -3.1 -7.0 489.83 -4.9 2.6FTSE World 2620 560.15 0.0 -3.3 -6.5 1167.74 -4.4 2.6FTSE Global All Cap ex UNITED KINGDOM In 7560 562.37 0.0 -3.2 -6.9 812.35 -4.9 2.5FTSE Global All Cap ex USA 6011 455.14 0.0 -2.3 -13.7 721.16 -11.3 3.3FTSE Global All Cap ex JAPAN 6539 552.27 -0.1 -3.0 -7.0 819.03 -5.0 2.6FTSE Global All Cap ex Eurozone 7191 562.42 0.1 -3.1 -6.4 809.89 -4.4 2.5FTSE Developed 2192 510.51 0.0 -3.4 -6.1 756.08 -4.1 2.6FTSE Developed All Cap 5763 535.89 0.0 -3.4 -6.4 783.38 -4.4 2.5FTSE Developed Large Cap 928 472.89 0.0 -3.6 -5.7 711.89 -3.5 2.6FTSE Developed Europe Large Cap 246 333.50 -0.6 -2.3 -13.6 583.94 -10.6 3.8FTSE Developed Europe Mid Cap 346 543.32 -0.4 -3.4 -14.8 843.88 -12.5 3.2FTSE Dev Europe Small Cap 739 755.70 0.1 -4.5 -16.8 1133.75 -14.7 3.1FTSE North America Large Cap 289 568.37 0.0 -4.1 -0.9 795.75 0.9 2.2FTSE North America Mid Cap 400 803.22 0.1 -1.7 -4.3 1041.49 -2.9 1.8FTSE North America Small Cap 1387 821.82 0.1 -3.6 -4.4 1033.07 -3.2 1.7FTSE North America 689 376.90 0.0 -3.7 -1.5 539.61 0.2 2.1FTSE Developed ex North America 1503 239.89 -0.1 -2.8 -13.1 409.04 -10.6 3.3FTSE Japan Large Cap 197 357.37 0.7 -3.9 -9.6 476.97 -7.7 2.3FTSE Japan Mid Cap 323 585.68 0.9 -4.1 -11.5 745.61 -10.0 1.9FTSE Global wi JAPAN Small Cap 818 638.06 0.8 -4.4 -14.3 840.53 -12.8 2.0FTSE Japan 520 151.58 0.8 -3.9 -10.0 226.72 -8.2 2.2FTSE Asia Pacific Large Cap ex Japan 530 630.34 0.2 -0.9 -15.4 1031.12 -13.1 3.2FTSE Asia Pacific Mid Cap ex Japan 478 808.02 -0.2 0.7 -17.1 1267.78 -14.8 3.4FTSE Asia Pacific Small Cap ex Japan 1470 504.04 0.0 -0.1 -18.2 774.54 -16.2 3.1FTSE Asia Pacific Ex Japan 1008 496.29 0.1 -0.7 -15.6 862.36 -13.3 3.3FTSE Emerging All Cap 2114 683.20 0.0 0.2 -15.3 1061.19 -13.0 3.2FTSE Emerging Large Cap 513 654.14 0.1 -0.2 -14.6 1023.20 -12.3 3.1FTSE Emerging Mid Cap 505 837.25 -0.1 1.6 -15.6 1293.70 -13.0 3.7FTSE Emerging Small Cap 1096 666.14 -0.3 1.1 -20.5 991.91 -18.4 3.4FTSE Emerging Europe 86 343.11 0.7 1.9 -11.9 573.75 -7.8 5.7FTSE Latin America All Cap 240 847.90 -0.4 -4.8 -8.6 1358.09 -6.1 3.2FTSE Middle East and Africa All Cap 259 658.53 0.8 2.8 -16.1 1067.49 -13.8 3.5FTSE Global wi UNITED KINGDOM All Cap In 317 317.16 -0.4 -2.0 -14.2 561.88 -10.9 4.3FTSE Global wi USA All Cap 1866 650.01 0.0 -3.8 -1.3 881.08 0.3 2.0FTSE Europe All Cap 1486 391.93 -0.5 -2.5 -14.1 661.18 -11.3 3.7FTSE Eurozone All Cap 686 379.15 -0.7 -3.1 -15.6 641.03 -13.1 3.5FTSE RAFI All World 3000 3167 6444.48 -0.1 -2.7 -9.0 8864.91 -6.4 3.3FTSE RAFI US 1000 1030 11135.75 0.0 -3.1 -3.5 15087.69 -1.4 2.6FTSE EDHEC-Risk Efficient All-World 3210 377.69 0.0 -2.2 -6.9 541.88 -4.9 2.5FTSE EDHEC-Risk Efficient Developed Europe 592 298.19 -0.4 -3.0 -11.9 471.33 -9.5 3.2Oil & Gas 148 366.54 -0.1 -6.2 -6.3 621.62 -3.2 3.9

Oil & Gas Producers 108 360.75 -0.1 -0.1 -4.1 625.53 -0.9 3.8Oil Equipment & Services 33 255.99 0.0 0.0 -18.7 388.78 -16.0 4.3Basic Materials 257 466.20 -0.4 -0.4 -14.5 740.55 -12.0 3.4Chemicals 119 697.32 -0.4 -0.4 -13.5 1105.87 -11.4 2.8Forestry & Paper 18 273.04 -0.8 -0.8 -11.4 481.89 -8.8 3.3Industrial Metals & Mining 66 383.14 -0.7 -0.7 -21.4 608.59 -18.9 4.1Mining 54 576.06 -0.4 -0.4 -12.3 925.82 -8.5 4.4Industrials 579 369.84 -0.1 -0.1 -10.9 547.22 -9.2 2.2Construction & Materials 117 455.81 -0.2 -0.2 -18.1 704.91 -16.4 2.5Aerospace & Defense 29 755.92 -0.2 -0.2 -1.7 1105.98 0.0 2.0General Industrials 58 199.20 -0.2 -0.2 -17.0 320.25 -15.1 2.8Electronic & Electrical Equipment 78 393.28 -0.4 -0.4 -14.7 530.80 -13.5 1.7Industrial Engineering 108 694.68 -0.4 -0.4 -19.6 1014.84 -17.9 2.5Industrial Transportation 104 672.39 0.0 0.0 -6.2 996.74 -4.4 2.3Support Services 85 383.79 0.2 0.2 0.2 541.43 1.8 1.7Consumer Goods 435 444.75 0.1 0.1 -12.7 680.40 -10.7 2.8Automobiles & Parts 109 356.21 0.1 0.1 -20.9 528.99 -18.8 3.3Beverages 45 627.02 0.1 0.1 -6.9 968.65 -5.3 2.7Food Producers 107 593.93 0.2 0.2 -6.2 931.66 -3.9 2.6Household Goods & Home Construction 45 412.40 0.2 0.2 -12.4 628.81 -10.0 2.9Leisure Goods 31 193.70 0.2 0.2 -19.1 259.96 -18.1 1.2Personal Goods 85 733.45 0.2 0.2 -2.8 1054.34 -1.1 2.0Tobacco 13 1001.51 -0.5 -0.5 -28.9 2192.35 -26.1 5.5Health Care 203 525.63 0.0 0.0 4.5 777.14 6.4 1.9Health Care Equipment & Services 79 967.36 0.1 0.1 10.0 1142.28 10.9 1.0Pharmaceuticals & Biotechnology 124 360.63 0.0 0.0 2.1 560.84 4.5 2.4Consumer Services 399 465.51 0.2 0.2 -1.7 634.83 -0.3 1.6Food & Drug Retailers 58 283.88 0.1 0.1 -2.9 408.55 -0.8 2.3General Retailers 130 712.30 0.1 0.1 2.9 941.11 3.9 1.2Media 79 326.97 0.2 0.2 -4.7 447.61 -3.2 1.7Travel & Leisure 132 453.36 0.4 0.4 -5.3 627.39 -3.8 2.0Telecommunication 89 147.74 -0.3 -0.3 -11.1 294.07 -7.2 4.8Fixed Line Telecommuniations 38 123.25 -0.1 -0.1 -8.7 271.65 -4.3 5.4Mobile Telecommunications 51 156.13 -0.5 -0.5 -14.2 276.87 -11.1 4.0Utilities 165 270.37 -0.2 -0.2 -2.0 552.10 1.4 3.6Electricity 110 300.40 0.0 0.0 -0.7 605.04 2.6 3.5Gas Water & Multiutilities 55 277.68 -0.4 -0.4 -4.5 584.75 -0.8 3.8Financials 729 231.75 -0.1 -0.1 -10.3 394.29 -7.7 3.4Banks 244 197.81 -0.1 -0.1 -14.7 364.27 -11.7 4.1Nonlife Insurance 72 266.37 -0.2 -0.2 -2.2 398.03 0.0 2.4Life Insurance 55 212.92 -0.2 -0.2 -15.6 354.89 -13.0 3.5Financial Services 164 292.20 0.0 0.0 -4.9 412.79 -3.3 2.1Technology 206 260.28 0.1 0.1 -3.0 325.32 -1.7 1.6Software & Computer Services 105 455.35 0.2 0.2 -1.7 537.82 -0.9 0.9Technology Hardware & Equipment 101 192.76 0.0 0.0 -4.5 253.12 -2.6 2.4Alternative Energy 7 94.88 0.1 0.1 -1.5 131.03 0.2 2.0Real Estate Investment & Services 116 321.64 -0.1 -0.1 -12.6 557.34 -10.1 3.2

The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please seewww.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 ExchangeGroup companies and is used by FTSE International Limited under licence.

FTSE 100 SUMMARY

Closing Day'sFTSE 100 Price Change

Closing Day'sFTSE 100 Price Change

3I Group PLC 829.40 -4.20Admiral Group PLC 2105 21.00Anglo American PLC 1675.4 109.20Antofagasta PLC 863.20 62.80Ashtead Group PLC 1828.5 69.50Associated British Foods PLC 2399 -25.00Astrazeneca PLC 6152 35.00Aviva PLC 404.80 -2.20Bae Systems PLC 501.00 9.70Barclays PLC 163.40 0.52Barratt Developments PLC 462.00 -0.20Berkeley Group Holdings (The) PLC 3248 22.00Bhp Group PLC 1590 88.40BP PLC 532.00 12.00British American Tobacco PLC 2783 33.00British Land Company PLC 557.20 -7.40Bt Group PLC 256.60 -5.40Bunzl PLC 2429 13.00Burberry Group PLC 1858 81.50Carnival PLC 4630 77.00Centrica PLC 138.55 0.80Coca-Cola Hbc AG 2422 88.00Compass Group PLC 1694 15.50Crh PLC 2221 74.00Croda International PLC 4984 108.00Dcc PLC 6025 120.00Diageo PLC 2824 0.50Direct Line Insurance Group PLC 328.80 0.80Easyjet PLC 1114.5 2.00Evraz PLC 488.80 34.70Experian PLC 1950 43.50Ferguson PLC 5199 179.00Fresnillo PLC 771.60 18.20Glaxosmithkline PLC 1498 -123.60Glencore PLC 300.80 10.65Gvc Holdings PLC 777.00 38.00Halma PLC 1411 39.00Hargreaves Lansdown PLC 1991 89.50HSBC Holdings PLC 679.90 15.60Imperial Brands PLC 2415 5.00Informa PLC 713.40 22.20Intercontinental Hotels Group PLC 4262 62.00International Consolidated Airlines Group S.A. 626.00 0.40Intertek Group PLC 4876 179.00Itv PLC 143.60 -1.60Johnson Matthey PLC 2954 30.00Just Eat PLC 600.00 17.40Kingfisher PLC 243.00 -7.00Land Securities Group PLC 806.60 -6.60Legal & General Group PLC 244.60 -0.30Lloyds Banking Group PLC 55.95 0.59

London Stock Exchange Group PLC 4080 47.00Marks And Spencer Group PLC 291.40 -1.30Melrose Industries PLC 183.35 6.75Micro Focus International PLC 1552 13.00Mondi PLC 1775.5 66.00Morrison (Wm) Supermarkets PLC 236.70 -0.90National Grid PLC 829.40 -3.50Next PLC 4857 -44.00Nmc Health PLC 3354 56.00Ocado Group PLC 836.60 5.40Paddy Power Betfair PLC 7075 100.00Pearson PLC 966.60 3.20Persimmon PLC 1893 -7.00Prudential PLC 1568 27.50Randgold Resources LD 6260 -8.00Reckitt Benckiser Group PLC 6586 74.00Relx PLC 1670 37.50Rentokil Initial PLC 337.50 7.50Rightmove PLC 449.05 11.45Rio Tinto PLC 3701.5 142.50Rolls-Royce Holdings PLC 883.00 33.40Royal Bank Of Scotland Group PLC 221.30 3.10Royal Dutch Shell PLC 2460.5 65.00Royal Dutch Shell PLC 2415.5 45.50Royal Mail PLC 315.40 -4.40Rsa Insurance Group PLC 544.80 2.20Sage Group PLC 579.00 -2.40Sainsbury (J) PLC 306.40 1.40Schroders PLC 2590 63.00Scottish Mortgage Investment Trust PLC 500.00 4.65Segro PLC 607.00 3.80Severn Trent PLC 1819 -11.00Shire PLC 4594 44.00Smith & Nephew PLC 1435 10.00Smith (Ds) PLC 344.70 10.60Smiths Group PLC 1435 45.50Smurfit Kappa Group PLC 2220 94.00Sse PLC 1083 -12.50St. James's Place PLC 1035 29.50Standard Chartered PLC 627.40 18.00Standard Life Aberdeen PLC 262.95 -2.45Taylor Wimpey PLC 133.65 -0.35Tesco PLC 197.45 -0.10Tui AG 1161.5 44.50Unilever PLC 4244.5 1.00United Utilities Group PLC 751.40 -9.00Vodafone Group PLC 168.06 -0.88Whitbread PLC 4601 3.00Wood Group (John) PLC 674.40 39.40Wpp PLC 880.20 14.40

UK STOCK MARKET TRADING DATA

Dec 03 Nov 30 Nov 29 Nov 28 Nov 27 Yr Ago- - - - - -

Order Book Turnover (m) 53.53 71.40 71.40 70.72 64.92 57.83Order Book Bargains 1134056.00 979220.00 979220.00 973815.00 957116.00 991795.00Order Book Shares Traded (m) 1436.00 1929.00 1929.00 1324.00 1352.00 1402.00Total Equity Turnover (£m) 4270.84 4506.42 4506.42 4528.61 4898.18 4125.55Total Mkt Bargains 1305344.00 1139841.00 1139841.00 1131950.00 1124072.00 1154080.00Total Shares Traded (m) 3732.00 4159.00 4159.00 3551.00 3922.00 3882.00† Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.(c) Market closed.

All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believedaccurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant norguarantee that the information is reliable or complete. The FT does not accept responsibility and will not beliable for any loss arising from the reliance on or use of the listed information.For all queries e-mail [email protected]

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

UK RIGHTS OFFERS

Amount LatestIssue paid renun. closingprice up date High Low Stock Price p +or-There are currently no rights offers by any companies listed on the LSE.

UK COMPANY RESULTS

Company Turnover Pre-tax EPS(p) Div(p) Pay day TotalAssociated British Engineering Int 0.498 0.666 0.342L 0.377L 16.700L 18.400L 0.00000 0.00000 - 0.000 0.000GCM Resources Pre 0.000 0.000 5.351L 1.006L 6.100L 1.600L 0.00000 0.00000 - 0.000 0.000Kropz A 0.000 0.000 21.438L 1.859L 0.046L 0.002L 0.00000 0.00000 -Mercia Technologies Int 5.270 4.849 1.903 1.404 0.640 0.480 0.00000 0.00000 - 0.000 0.000OKYO Pharma Ltd Int 0.000 0.000 1.193L 19.259L 0.200L 5.000L 0.00000 0.00000 - 0.000 0.000Omega Diagnostics Group Int 4.225 4.535 0.921 0.187L 0.600 0.200 0.00000 0.00000 - 0.000 0.000Plastics Capital Int 40.633 36.462 0.905 1.566 1.600 4.050 0.00000 0.00000 - 0.000 0.000Schroder European Real Estate Investment Trust Pre 17.084 11.680 0.099 0.077 1.85000 1.51700 Jan 25 3.700 2.700ULS Technology Int 15.795 15.282 2.296 0.626 2.890 0.290 0.00000 1.15000 - 1.150 2.250Yourgene Health Int 3.940 2.713 3.456L 4.930L 1.000L 2.000L 0.00000 0.00000 - 0.000 0.000

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

UK RECENT EQUITY ISSUES

Issue Issue Stock Close Mktdate price(p) Sector code Stock price(p) +/- High Low Cap (£m)11/30 40.00 AIM KRPZ Kropz PLC 44.50 1.40 45.00 44.90 10690.211/26 10.00 HERT Hertsford Capital PLC 11.75 0.00 12.50 10.75 376.011/22 0.75 GST Golden Saint Technologies Ltd 0.70 -0.05 0.90 0.61 691.911/14 100.00 MGCI M&G Credit Income Investment Trust PLC 103.25 -0.01 103.75 101.03 10325.011/06 121.00 AIM RENX Renalytix AI PLC 110.00 -10.00 122.40 105.00 5919.810/23 100.00 AJOT Avi Japan Opportunity Trust PLC 105.50 1.32 106.73 100.53 8440.0

§Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/irFor a full explanation of all the other symbols please refer to London Share Service notes.

DECEMBER 4 2018 Section:Stats Time: 3/12/2018 - 18:24 User: keith.allen Page Name: MARKET DATA 1, Part,Page,Edition: LON, 22, 1


MARKET DATA

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FINANCIAL TIMES SHARE SERVICE

Main Market52 Week Vol

Price +/-Chg High Low Yld P/E 000s52 Week Vol





Price +/-Chg High Low Yld P/E 000s

Aerospace & DefenceAvon Rubber 1310 5.00 1485 1135 1.03 20.34 18.1BAE Sys 501.00 9.70 680.20 486.10 4.35 21.23 16921.4Chemring 169.20 1.60 239.50 161.54 1.77 -56.40 142.7Meggitt 528.60 10.40 583.80 415.50 3.00 14.44 1855.1RollsRoyceX♦ 883.00 33.40 1104.5 750.00 1.33 7.83 5033.8Senior 243.40 3.20 336.60 216.80 2.86 15.78 851.4UltraElc 1440 -5.00 1763 1196 3.44 29.63 113.9

Automobiles & PartsFordMtr $X 9.64 0.23 13.48 8.17 6.08 6.36 34237.2

BanksANZ A$X♦ 26.72 -0.08 30.39 24.68 5.75 11.83 5112.9BcoSant 379.05 8.90 534.00 350.75 5.29 10.30 2008.2BnkGeorgia 1366 -4.00 3884 1355.2 5.20 4.85 83.9BankIre Grp € 5.55 -0.07 8.25 5.54 2.06 9.46 172.0BkNvaS C$X 72.42 0.12 83.79 69.02 4.53 10.61 957.7BarclaysX 163.40 0.52 220.10 160.48 2.75 77.81 33208.6CanImp C$X 110.99 -0.51 125.21 110.00 4.80 9.52 728.9HSBCX 679.90 15.60 798.60 596.40 5.70 16.56 22399.8LlydsBkgX 55.95 0.59 72.68 54.08 5.58 9.99 140198.4PermTSB € 1.81 0.09 2.44 1.55 - 17.06 36.0RylBkC C$X 97.35 -0.07 108.52 93.13 3.88 11.63 1222.5RBSX 221.30 3.10 304.20 208.60 0.90 35.67 11055.5Sberbank of Russia PJSC ADR - - - - - - -STB 1400 -35.00 2120 1375 5.64 11.27 2.3StandChX 627.40 18.00 122709.4

9514.20 1.33 24.15 9587.5

..7.375%Pf 114.20 -3.55 143.25 116.00 6.46 - 17.0

..8.25%Pf 121.00 0.80 158.90 120.20 6.82 - 12.5TntoDom C$X 73.22 -0.34 80.05 69.21 3.57 12.17 1350.1Westpc A$X♦ 26.25 0.28 31.79 24.94 6.88 11.88 5081.5

Basic Resource (Ex Mining)Ferrexpo 188.90 13.60 321.50 138.00 2.58 4.45 2738.5Mondi 1775.5 66.00 2250 1684 3.05 14.45 1612.8

ChemicalsCarclo 80.90 -1.90 137.00 62.40 - 7.63 2.0Croda 4984 108.00 5330 4215 1.63 27.01 406.1Elemntis 197.50 1.10 294.50 186.50 3.03 12.50 208.1Johnsn Mtthey♦ 2954 30.00 3873 2737 2.71 17.07 571.9Victrex 2514 64.00 3434 2368 2.14 18.72 305.1

Construction & MaterialsAlumasc 125.50 -1.00 175.50 118.40 5.78 10.55 15.6Boot(H) 269.00 6.00 350.00 253.00 2.97 7.84 7.5CRH 2221 74.00 2891 2067 2.71 11.56 2337.5GalfrdT♦ 700.00 -19.50 1323 700.00 11.82 5.80 700.4KierGp 446.00 -62.00 1166 446.00 15.25 4.97 2168.0Kingsp € 39.38 1.32 44.28 32.00 0.93 24.24 121.2LowBonr 25.00 -1.50 69.75 24.60 12.20 -2.11 35.1Marshlls♦ 430.00 -1.20 502.00 380.40 2.37 19.06 302.5MorgSdl 1184 -44.00 1554 1078 3.80 9.41 383.0Norcros♦ 210.00 - 234.00 170.00 3.71 10.34 18.2Tyman 258.50 - 387.00 250.00 4.35 15.99 69.6

Electronic & Electrical EquipDialight 350.00 - 730.00 345.00 - 112.90 0.8Discoverie PLC 346.00 6.00 456.00 324.00 2.51 21.90 53.6Halma 1411 39.00 1507 1136 1.04 32.00 1068.8Morgan Ad 273.60 -1.00 370.00 257.20 4.02 13.89 531.8OxfordIn 937.00 -9.00 1116 676.00 1.42 29.19 40.5Renishaw 4404 124.00 5820 3614 1.21 24.22 62.5Spectris 2495 101.00 2957 1924.5 2.26 10.24 440.9TT Elect 212.00 1.00 282.00 197.00 2.74 18.60 3428.5XP Power 2320 - 3780 2140 3.41 14.10 35.5

Financial General3i 829.40 -4.20 1038 785.80 3.62 5.30 5581.8BrewDlph 325.00 - 399.40 305.20 4.12 20.31 7917.8CtyLonInv 387.00 4.00 459.00 350.00 6.72 9.85 2.0CloseBrs 1505 1.00 1682 1361 4.05 11.13 218.0DBAG € 34.45 0.55 52.30 33.20 4.00 8.03 10.9Hargr Lans 1991 89.50 2280 1591 1.53 40.14 1078.1

Indvardn SKr 189.80 3.15 220.60 168.60 2.87 8.81 496.5ICG 1040 25.00 1226 899.00 2.88 10.47 714.4Investec 484.30 8.00 649.40 451.20 4.96 9.37 2055.7Jupiter 327.90 6.40 638.80 309.00 5.22 9.56 690.5Liontrust♦ 628.00 14.00 694.00 462.25 3.34 26.32 10.4LSE Gp 4080 47.00 4814 3612 1.26 23.94 668.9Man 149.75 4.40 219.20 135.95 5.39 12.28 3272.8NB GFRIF 88.60 -0.10 95.55 88.00 3.77 -21.07 6526.0Paragon 420.00 -0.20 558.50 397.80 3.74 9.33 363.4Providnt 606.80 -0.60 804.87 413.70 - -6.72 393.4RathbnBr 2488 64.00 2810 2210 2.45 21.05 26.4Record 32.15 0.45 53.20 29.10 7.15 10.47 526.5S & U 2150 -20.00 2790 1920 4.88 9.82 1.6Schroder 2590 63.00 3784 2400 4.36 11.82 278.2..N/V 2330 50.00 2730 2070 1.46 10.63 21.1Strd Life Aber 262.95 -2.45 508.57 248.00 9.26 7.93 10378.4TP ICAP 315.70 4.90 560.60 245.80 5.34 41.00 1238.1WlkrCrip 33.50 - 43.40 30.13 5.58 29.13 96.1

Food & BeveragesAngloEst 542.00 -14.00 815.00 538.00 0.55 9.39 2.1AscBrFdX 2399 -25.00 2953 2186 1.72 18.82 712.5Barr(AG) 786.00 -11.00 802.00 610.50 1.98 24.93 141.3Britvic 858.50 2.00 869.00 658.00 3.09 21.36 1370.7CarrsGroup♦ 159.75 2.00 168.00 118.00 3.26 12.58 34.7Coca-Cola HBC 2422 88.00 2817 2176 1.97 22.27 834.8Cranswk 2786 -48.00 3502 2644 1.93 20.88 126.5Dairy Cr 456.20 -3.80 605.00 430.80 4.95 16.06 253.8Devro 181.20 1.20 235.75 156.80 4.86 21.32 93.5DiageoX 2824 0.50 2885 2345.5 2.25 23.66 4127.8Grncore 183.80 -4.30 233.70 120.00 2.98 367.60 5946.1HiltonFd 906.00 -10.00 1020 760.36 2.10 27.04 22.9Kerry € 89.70 -1.60 99.45 76.80 0.69 27.07 92.9Nestle SFrX 85.20 0.06 86.40 72.92 2.67 33.03 4432.6PremFds 36.00 0.25 46.86 35.15 - 48.39 873.0PureCircle 290.00 -3.00 490.00 275.50 - 77.35 5.0REA 258.00 -3.00 360.00 250.00 - -7.83 3.0StckSpirit 195.40 3.80 320.00 184.00 3.67 33.84 137.1Tate&Lyl♦ 716.40 -1.60 722.80 522.60 4.01 15.24 2181.8TongtHu R 67.84 -0.51 120.43 48.48 4.64 10.46 120.5Unilever♦ 4244.5 1.00 4503.5 3678.5 3.04 22.09 2438.2..NV €♦ 48.70 -0.10 50.20 42.10 2.98 22.61 1.5

Health Care Equip & ServicesBioquell 578.00 3.00 589.00 255.10 - 44.81 195.7ConstMed 981.00 -16.00 1294 976.00 2.10 30.00 5.9ConvaTec 153.55 1.60 41408.93 140.00 2.81 16.89 3385.5GNStre kr 237.80 7.50 346.60 190.55 0.52 28.61 532.2Mediclinic 357.00 3.40 712.40 330.70 2.21 -4.32 2105.7NMC Health 3354 56.00 4376 2661 0.38 42.83 349.4Smith & Nephew 1435 10.00 1459 1173 1.86 23.13 2823.5UDGHlthC 679.00 9.50 950.50 548.00 1.39 56.83 875.2

House, Leisure & Pers GoodsBarrttDev 462.00 -0.20 661.60 454.10 5.56 7.01 3707.8Bellway♦ 2561 19.00 3700 2529 5.17 6.07 319.2Berkeley 3248 22.00 4338 3195 3.34 5.90 398.6BovisHme 866.80 7.40 1311.5 852.80 5.48 11.10 466.2Burberry Gp 1858 81.50 2338 1481.5 2.22 23.64 1839.0Cairn Homes € 1.25 -0.02 2.00 1.24 - 79.34 439.5CtrySide 289.60 0.40 387.00 265.60 2.90 10.27 595.1CrestNic 341.20 -1.00 565.00 275.00 9.67 5.28 589.2GamesWk 3190 155.00 4060 1857 3.76 17.50 151.0Gleeson♦ 670.00 8.00 830.00 650.00 3.96 12.15 14.4Headlam♦ 439.50 8.50 600.00 408.50 5.64 11.42 8.3McBride 140.00 6.20 235.00 108.80 3.14 13.46 3.2McCarthy&S 137.00 1.40 172.20 96.05 3.94 11.42 512.5Persimn 1893 -7.00 2913 1878.25 12.41 7.34 1611.6Philips € 33.61 0.37 40.01 29.25 2.36 39.84 2944.6PZCusns 230.40 -0.60 336.20 199.70 3.59 20.19 158.7ReckittBX 6586 74.00 7174 5255 2.49 13.50 1043.7Redrow 481.40 12.20 666.00 467.60 4.15 5.65 794.3Superdry Plc■ 747.50 -26.00 2102 704.50 3.95 12.08 292.5TaylorWm 133.65 -0.35 211.90 130.50 3.55 6.92 18802.2TedBaker 1550 -276.00 3244 1492 3.88 13.15 1663.9

Industrial EngineeringBodycote 748.00 12.00 1077 719.00 2.33 13.67 345.0Castings♦ 410.00 - 484.00 366.00 3.54 18.47 3.6Goodwin 2730 60.00 2940 1650 1.55 23.11 0.4Hill&Sm♦ 1179 -18.00 1538 877.50 2.54 18.51 88.7IMI 1001 27.50 1453 892.50 3.94 18.61 728.7MelroseInd 183.35 6.75 248.80 149.55 2.29 -15.15 26912.1Renold 32.85 0.35 55.00 22.00 - -46.93 75.5RHIM 3754 132.00 5350 3240 - -93.98 60.4Rotork 263.80 1.60 363.20 248.60 2.05 38.79 3433.5Severfd 73.00 -2.00 89.40 62.00 3.56 11.46 212.3Tex 102.50 - 140.70 100.00 8.29 13.49 2.7Trifast 200.00 -4.00 277.00 185.00 1.93 19.12 562.1Vitec 1230 10.00 1430 1030 2.48 39.55 2.9Weir 1539 65.00 2333 1370 2.86 21.33 1373.1

Industrial GeneralCoats Group 80.90 -0.40 90.00 69.00 1.35 20.42 1034.1JardnMt $X 66.92 0.89 67.90 55.80 2.29 16.13 220.9Jard Str $X 39.15 0.65 42.18 31.55 0.80 13.99 367.9Macfrlne 78.75 -1.25 114.00 75.50 2.67 14.32 112.2RPC 669.60 -47.20 930.00 642.40 4.18 10.83 2474.8Smith DS 344.70 10.60 516.20 274.10 4.18 14.94 4699.6Smiths 1435 45.50 1810 1257 3.03 20.77 728.6SmurfKap 2220 94.00 3306 2090 3.49 11.12 730.3Vesuvius 531.00 4.00 663.00 509.50 3.39 23.60 477.6

Industrial TransportationBBA Aviat 234.60 -3.00 370.40 227.00 3.13 26.34 2428.3Braemar♦ 224.00 -3.50 302.00 218.10 6.70 -10.28 20.9Clarkson 2280 -80.00 3475 1970 3.20 23.85 20.8Eurotunnl € 11.25 -0.23 12.49 10.05 2.65 53.97 1203.7Fisher J 1656 -78.00 1940 1340 1.73 19.19 10.2OceanWil 1175 10.00 1310 1001.5 3.94 7.18 2.6RoyalMail 315.40 -4.40 632.60 297.00 7.61 34.28 3855.8

InsuranceAdmiral 2105 21.00 2138 1794.5 2.51 17.99 471.8AvivaX 404.80 -2.20 554.60 403.00 6.77 14.61 16735.9Beazley 554.00 -5.00 621.50 478.20 2.07 84.07 1358.9Chesnar 342.00 -12.00 424.50 340.00 5.87 9.62 118.5Direct Line 328.80 0.80 397.00 307.80 6.20 11.66 6369.6Eccles prf 138.00 -0.50 160.94 110.00 6.25 - 95.6Hansard 47.90 - 94.00 46.00 14.82 9.78 120.7Hiscox 1679 -7.00 1727 1283 1.72 100.47 577.5JardineL 1892 2.00 1902 1186 1.80 37.10 208.7Lancashire■ 637.50 -2.50 705.00 505.00 1.81 36.15 299.0Leg&Gen 244.60 -0.30 287.60 235.70 6.28 8.96 10535.7Old Mut 132.02 4.08 176.62 106.16 - 11.67 6841.0PhoenixGrp 602.50 3.00 719.50 491.79 7.49 58.77 1203.7PrudntlX 1568 27.50 1992.5 1456 3.00 17.94 5924.5RSA Ins 544.80 2.20 683.40 521.20 3.60 18.53 2184.8SagicFin 117.50 - 127.00 70.00 3.26 10.94 2.0StJmsPl 1035 29.50 1279.5 952.80 4.14 36.06 1514.9

LEISUREPhotoMe International Plc 106.60 -2.40 194.00 97.20 7.18 10.06 532.7

Media4imprint 2040 - 2280 1555 2.16 24.79 42.8Auto Trader Group PLC 441.80 3.40 471.40 328.90 1.34 23.54 3721.7Centaur 44.50 -0.40 56.00 35.00 6.74 222.50 2.2DlyMailA 632.00 12.00 781.00 523.00 3.59 -24.40 1663.2HaynesPb 176.50 - 247.94 168.00 4.25 18.01 1.0Informa 713.40 22.20 869.60 657.40 2.87 20.98 2390.5ITE Grp 61.10 -2.10 93.10 44.09 4.06 -22.41 148.5ITV 143.60 -1.60 183.05 141.00 5.43 13.81 13760.5Pearson 966.60 3.20 980.60 651.00 1.76 12.70 3257.8RELX NV £ 18.74 0.35 19.64 15.86 2.11 22.82 1135.3RELXX 1670 37.50 1750.5 1399 2.36 20.34 3189.8Rightmove PLC 449.05 11.45 539.60 402.50 1.29 26.99 2324.4STV Grp 345.00 -10.00 458.00 300.00 4.93 123.21 18.4ThmReut C$X♦ 65.82 -1.31 71.54 51.43 2.98 25.21 424.0WPPX 880.20 14.40 1474 818.00 6.82 5.90 3981.7

MiningAngloAmer 1675.4 109.20 1948 1322.5 4.61 9.37 5676.9AngloPacif 146.50 3.50 168.00 123.50 5.89 10.05 451.1AnGoldA R 139.66 0.53 154.20 100.21 0.56 211.42 1282.1Antofagasta 863.20 62.80 1171.5 713.20 0.88 17.19 3962.5Barrick C$♦ 16.96 0.03 19.49 12.54 0.91 -23.10 1583.3BHP Group 1590 88.40 1803.6 1314.5 4.66 16.87 10763.1BisichMg 90.00 - 125.00 68.25 4.44 3.41 9.0EVRAZ♦ 488.80 34.70 589.60 280.30 11.28 5.38 6002.3Fresnillo 771.60 18.20 1461 737.60 3.96 15.58 941.7GlencoreX 300.80 10.65 416.90 279.45 3.43 9.46 58365.0Harmony R 21.00 0.13 31.50 19.00 1.57 -2.21 2636.8KAZ Minerals PLC 590.00 38.80 1102.5 421.50 - 6.44 3231.2Lonmin 44.00 -1.50 91.80 36.00 - -0.20 247.1Petropvlsk 6.18 0.04 8.75 5.15 - -11.38 873.0PolymtIntl 780.40 -4.40 945.00 577.80 4.20 11.08 2301.1RndgldRs 6260 -8.00 7470 4607 2.54 31.68 486.6Rio TintoX 3701.5 142.50 4541 3399 5.88 8.82 6034.0Sirius Min 22.50 -0.28 39.78 21.00 - -70.31 9218.5Troy Res A$ 0.12 0.01 0.18 0.08 - -5.90 209.9

Oil & GasBPX♦ 532.00 12.00 603.20 452.50 5.79 16.11 63082.6CairnEng 175.80 0.70 270.40 165.20 - -4.31 2622.4ExxonMb $X♦ 80.66 1.16 89.30 72.16 3.85 15.18 5511.4Gazprom PJSC ADR $ 4.93 0.17 6.46 4.10 5.28 4.94 30184.3GeoPark $ 15.86 0.49 21.88 8.46 - 30.64 76.8GulfKeyst 192.00 7.00 303.50 89.25 - 14.55 1152.2HellenPet € 7.62 0.24 8.88 6.60 5.21 5.37 128.9Hunting 590.00 23.50 934.50 522.50 - 42.11 304.7ImpOil C$X♦ 37.93 -1.64 44.91 33.43 1.84 23.35 1351.3OphirEgy 33.85 0.40 76.60 31.65 - -0.79 2044.9PJSC Lukoil ADR $ 76.36 4.62 78.19 0.97 1.66 6.29 41.0PremOil 74.10 3.45 146.90 64.70 - -1.99 13365.4RylDShlAX♦ 2415.5 45.50 2755 2168.5 5.98 12.23 5157.0..B♦ 2460.5 65.00 2844.5 2194 5.87 12.46 5271.2Schlmbrg $X 46.00 0.90 80.35 44.68 4.25 -100.20 4890.8Seplat♦ 122.50 3.00 160.00 97.50 3.09 2.54 17.4Soco Int 72.80 - 129.80 72.00 7.26 -2.10 229.5TrnCan C$X 55.04 0.59 63.29 48.92 4.88 14.92 912.5Tullow Oil PLC 194.30 9.90 279.30 169.25 - 14.83 9741.1Wood Group (John) PLC 674.40 39.40 801.20 515.00 1.25 -54.29 3365.0

Pharmaceuticals & BiotechAstraZenecaX 6152 35.00 6432 4544.5 3.42 41.90 2020.0BTG 832.50 -2.50 836.00 467.40 - 141.61 1864.8CathayIn 8.25 1.00 9.30 3.00 - -2.85 5.0Dechra 2160 - 3180 1956 1.05 58.32 262.6Genus 2378 -28.00 2998 2090 1.02 34.61 33.5GlaxoSmhX♦ 1498 -123.60 1648.8 1236.4 5.34 39.57 24708.5HikmaPhm 1769.5 -11.50 2089 814.20 1.43 -6.95 494.9Oxfd Bio 715.00 8.30 1062.6 437.50 - -467.32 76.6RichterG $ 19.90 0.40 27.00 16.30 1.18 57.58 0.0ShireX 4594 44.00 4780 2940.5 0.59 11.39 2881.2VecturGp 72.85 -0.15 127.20 65.85 - -6.94 643.7

Real EstateREITsAssura 53.10 -0.30 64.20 52.40 4.93 48.27 2122.9BigYellw 883.50 10.00 997.50 808.00 3.49 12.02 382.9BritLand 557.20 -7.40 703.00 553.20 5.44 27.31 3938.4Cap&Reg 35.55 -0.95 59.50 35.20 10.24 15.07 300.7Civitas SH 100.00 -5.00 114.00 95.60 - - 5689.8Countrywd 8.98 0.32 63.33 8.64 - -0.09 1627.8DrwntLdn 2802 -58.00 3241 2707 2.13 10.38 233.8Great Portland♦ 680.00 -14.40 805.04 650.90 1.76 29.97 1117.9Green Reit € 1.43 0.03 1.76 1.35 5.28 6.99 276.3Hammersn 377.50 -8.50 578.20 376.50 6.75 19.15 3010.6Hansteen 92.25 -1.25 145.90 90.20 6.61 6.28 816.0Hibernia € 1.35 -0.01 1.57 1.28 2.22 9.38 1891.6Intu 113.30 -0.70 256.60 112.10 12.36 -3.76 6296.1LandSecs♦ 806.60 -6.60 1017 802.40 5.66 -25.85 2459.6LondonMtrc 176.20 -0.30 18981.57 172.80 4.51 6.60 1716.0McKaySec♦ 242.00 -8.00 289.00 227.00 4.13 5.98 32.0MucklGp 516.00 1.00 574.00 483.00 4.34 4.70 0.3PrimyHth 110.20 - 117.60 103.95 4.84 8.22 1620.5

RDI REIT♦ 31.45 - 38.10 30.65 8.27 7.31 2464.5SEGRO 607.00 3.80 682.40 538.50 2.73 5.42 3192.6Shaftbry 865.00 -5.00 1055 856.92 1.85 7.66 1152.5Town Ctr 236.00 -4.00 305.00 234.40 4.87 6.82 7.3TritaxBBOX 133.00 -2.40 158.00 132.80 4.87 6.56 3356.1Wkspace 829.50 -3.00 1176 824.00 3.30 9.55 268.8Real Estate Inv & ServicesCap&Count 256.60 2.50 320.70 234.80 0.58 -171.07 3418.8CLS 215.50 2.00 255.00 195.00 2.95 7.41 17.9Daejan 5860 - 6540 5500 2.83 4.63 3.2Grainger 229.00 -24.20 292.66 227.80 1.98 12.10 2327.5Harworth Grp 119.00 -1.00 133.00 104.00 0.70 9.83 15.2Helical♦ 321.50 1.50 399.00 296.00 2.95 7.41 171.4HK Land $ 6.50 -0.01 7.44 5.89 3.01 4.41 1719.5Lon&Assc 27.00 - 31.00 21.03 0.61 2.63 0.0MacauPrp 176.97 - 206.00 172.60 - 2.09 50.4Mntview 10025 - 11600 9650 3.99 14.02 0.0Palace Cap 295.00 1.00 366.00 208.00 8.05 8.60 27.2Raven Property Group Ltd 45.60 - 51.00 36.50 - 91.20 101.1RavenR CNV 119.50 - 125.01 113.00 - - 0.4RavenR Prf 148.00 - 156.00 120.00 - 165.73 47.5RavenR Wrt 21.00 - 27.55 19.00 - - 0.6Safestre 527.00 -0.50 585.00 455.50 2.66 10.65 206.2Savills 723.50 -3.00 1046 707.00 2.09 13.11 144.2SchroderRE♦ 55.80 0.50 67.30 54.50 4.44 9.79 753.8SiriusRE 59.60 -0.40 68.60 51.60 4.69 6.62 1051.7Smart(J)♦ 109.50 - 114.70 105.00 2.85 10.05 7.0StModwen 384.40 2.20 431.20 358.00 1.63 16.36 423.3U+I 215.00 -3.50 253.00 176.00 2.74 6.74 130.4Unite Gp 821.00 -13.00 919.50 708.00 2.76 7.42 491.4Urban&C 296.00 6.00 348.00 268.00 1.08 9.64 413.6

RetailersAA 90.86 -1.14 179.30 69.92 5.50 7.90 1995.1AO World 125.60 3.20 180.20 101.20 - -39.01 173.3AshleyL 3.80 0.05 8.00 3.51 - -20.00 135.0Caffyns 405.00 - 449.00 371.00 5.56 11.07 0.5Dairy Fm $ 8.87 0.07 9.68 7.67 2.28 29.94 468.6Debenhams 6.60 0.03 40.00 4.62 51.93 -7.33 5332.4Dignity 758.50 -39.00 1943 735.50 3.21 7.24 810.9DixonsCar 162.40 0.70 235.70 152.00 - 7.66 1686.9Dunelm♦ 618.50 76.50 729.50 460.60 4.28 17.09 802.0Findel 221.50 0.50 312.00 190.00 - 7.01 50.5Halfords 288.40 -3.40 391.00 287.80 6.25 11.92 363.6Inchcape 564.50 -17.00 826.00 482.20 4.75 9.68 1331.5JDSportsF♦ 391.50 -3.50 539.40 311.60 0.42 15.18 706.6Just Eat PLC 600.00 17.40 906.00 519.20 - -39.47 2315.5Kingfisher 243.00 -7.00 366.00 228.70 4.45 13.21 10788.1Marks&Sp♦ 291.40 -1.30 328.80 262.10 6.42 161.89 7402.2Morrison (Wm) 236.70 -0.90 270.50 203.30 2.57 23.37 12451.8MossBros 31.50 0.80 90.00 29.00 12.70 92.65 25.3Next 4857 -44.00 6224 4187 3.25 11.46 585.7Ocado 836.60 5.40 1163 331.50 - -323.01 1753.1Saga 114.50 1.80 188.40 108.00 7.86 8.74 6534.8Sainsbury (J)♦ 306.40 1.40 341.80 224.70 3.33 26.19 7029.8TescoX 197.45 -0.10 266.80 190.05 1.52 17.44 24693.7

Support ServicesAggreko 750.40 4.60 891.20 636.80 3.61 17.71 558.8AshtdGp 1828.5 69.50 2461 1670.5 1.54 8.82 2066.4Babcock 571.80 3.80 868.00 521.00 5.16 12.04 3414.1Bunzl♦ 2429 13.00 2466 1918.5 1.89 24.59 1122.9Capita 109.75 6.45 495.00 100.70 6.17 -2.50 6554.6Comnsis 71.00 0.20 73.00 47.00 3.75 13.25 77.4DCC♦ 6025 120.00 7760 5555 2.04 22.36 252.2DeLaRue 468.00 3.00 659.50 424.50 5.34 5.63 56.8Diploma♦ 1260 -8.00 1483 1039 1.83 28.64 115.6Elctrcmp♦ 523.40 8.60 779.20 511.60 2.53 14.11 819.6Essentra PLC 385.60 1.80 544.00 338.20 5.37 257.07 333.2Experian 1950 43.50 1994 1494.5 1.74 29.30 1672.7Ferguson♦ 5199 179.00 6601 4688.5 2.37 20.07 860.8G4S 195.30 1.35 293.50 173.55 4.97 15.88 4429.6Hays 157.10 0.30 213.40 151.90 2.11 13.90 2983.5Homesve 969.00 18.50 1066 700.00 1.97 33.07 329.7HowdenJny 447.50 2.20 541.80 431.10 2.48 14.72 1658.2

Intertek 4876 179.00 6084 4323 1.46 27.47 324.2Kin and Carta♦ 105.50 0.50 111.00 82.00 1.85 -4.78 221.1MngCnslt 1.73 -0.03 2.70 0.89 - -0.51 0.0MearsGp 335.00 - 440.00 300.00 3.58 16.19 44.4MenziesJ 514.00 4.00 718.00 490.00 3.99 17.48 327.0Mitie 135.40 -9.40 211.00 134.30 2.95 -18.55 512.8Renewi♦ 40.40 -0.05 108.80 38.55 7.55 -7.09 2810.5Rentokil 337.50 7.50 356.40 257.40 1.15 33.52 2914.7Ricardo 700.00 -20.00 1085 680.00 2.80 19.94 13.1RbrtWlts 504.00 -6.00 814.00 496.00 2.39 11.61 19.2RPS 150.00 -5.00 307.50 125.00 6.59 -22.29 249.6SIG 109.10 1.70 180.20 104.00 3.44 -26.61 735.4Vp 960.00 -20.00 1230 680.00 2.71 14.52 1.7

Tech - HardwareSpirentCM 129.00 -0.60 139.20 93.00 2.39 32.57 1069.2

Tech - Software & ServicesComputcnt 1056 -18.00 1632 1010 2.47 15.13 231.7MicroFoc 1552 13.00 2609 782.20 4.70 11.15 1652.2NCC Grp 183.20 -4.60 236.00 175.00 2.54 41.64 123.5RM 188.50 -7.00 244.00 160.00 3.50 10.59 2.7Sage 579.00 -2.40 825.20 491.30 2.66 24.39 4615.0SDL 460.00 -4.00 530.00 333.00 1.35 24.49 10.7TriadGp 45.00 -0.50 80.00 42.20 3.33 5.44 8.2

TelecommunicationsBTX 256.60 -5.40 278.50 201.25 6.00 11.30 25027.0Inmarsat 421.30 13.00 646.00 334.30 3.60 19.62 1601.0KCOM Gp 60.30 0.80 107.00 54.10 9.95 -51.10 318.6TalkTalk♦ 125.70 -1.20 158.10 88.60 3.18 157.13 926.2TelePlus♦ 1362 -4.00 1392 995.00 3.67 34.48 48.0Vodafone GpX♦ 168.06 -0.88 239.65 142.60 8.03 -33.94 86679.5

TobaccoBrAmTobX 2783 33.00 5108 2650 7.10 1.52 4720.8Imperial BrX 2415 5.00 3193.5 2298 7.07 18.84 2659.9

Travel & Leisure888 Hldg 166.30 2.00 326.60 162.00 4.51 9.38 456.5AirPrtnr♦ 94.50 0.50 156.00 65.00 5.82 18.17 53.1Carnival♦ 4630 77.00 5090 4121 3.17 13.46 569.9Cineworld 280.60 4.80 325.40 96.27 2.04 29.40 2341.0CompassX 1694 15.50 1722 1396.5 2.00 23.69 4094.5Dalata Hotel 416.00 -9.00 650.00 407.15 - 12.41 12.4easyJet 1114.5 2.00 1808.5 1061.5 3.67 9.95 2723.3EI Group 184.00 -0.20 191.60 114.20 - 11.08 760.8FirstGrp 91.75 2.55 119.60 76.15 - -3.61 2644.8Fuller A 886.00 -41.00 1010 877.48 2.21 14.96 16.0Go-Ahead 1642 -82.00 2004 1310 6.22 7.94 70.6GreeneKg 544.60 -4.60 652.20 454.00 6.10 10.83 831.0IntCon Htels Gp 4262 62.00 5050 3850 1.81 18.61 714.4Intl Cons Air 626.00 0.40 727.00 547.00 3.84 5.05 6079.9IrishCtl € 4.71 -0.09 5.95 4.16 2.56 13.04 31.7JPJ Grp 631.00 36.00 1048 571.00 - -15.02 210.4MandarO $ 2.03 - 2.73 1.70 1.41 42.69 184.4Marstons 99.80 -2.20 121.30 89.20 7.52 14.46 2328.5Merlin Ents 347.20 11.10 415.70 304.50 2.13 17.27 1414.6Natl Exp 401.20 -2.80 426.60 337.20 3.37 15.03 308.2Paddy Pwr Btfr 7075 100.00 9180 6000 2.83 27.56 158.7PPHE Htl 1610 - 1650 1075 1.49 17.89 0.9Restaurt 146.90 2.90 244.41 133.20 8.65 12.70 2770.7Ryanair Holdings PLC 385.60 1.80 544.00 338.20 5.37 257.07 333.2Stagech 155.00 -1.90 186.90 124.30 7.68 12.70 862.0ThomasCook 23.64 -6.46 150.00 23.62 2.54 14.78 46938.8TUI 1161.5 44.50 1816 1117 4.95 9.50 1852.2Whitbrd♦ 4601 3.00 4800 3542 2.20 19.31 696.0Willim H 166.10 4.10 345.00 161.00 7.95 -1.48 3954.0

UtilitiesCentrica 138.55 0.80 164.50 123.10 8.66 14.74 19385.3Drax 383.00 -7.60 432.40 218.00 3.21 -22.53 1435.9Natl GridX♦ 829.40 -3.50 895.10 733.00 5.54 8.44 7441.9Pennon 720.20 0.20 814.60 577.40 5.36 13.96 1089.1Severn Trent♦ 1819 -11.00 2179 1664 4.76 16.60 874.6SSE 1083 -12.50 1449.5 1077 8.74 38.96 3002.5UtdUtils 751.40 -9.00 833.00 648.60 5.29 13.89 2462.4

AIM52 Week Vol






Price +/-Chg High Low Yld P/E 000s

Aerospace & DefenceCohort 415.00 - 494.50 310.00 1.80 21.10 12.2Velocity Composites PLC 26.50 - 139.40 26.00 - -9.14 5.7

BanksCaribbean Inv 18.00 - 30.00 12.30 - 1.20 8.0

Basic Resource (Ex Mining)CropperJ♦ 1070 - 1850 1000.00 1.26 32.42 4.2

ChemicalsDirecta Plus PLC 51.50 - 73.00 37.00 - -7.28 14.5Scapa 369.80 15.20 510.00 295.80 0.65 31.61 413.4Versarien PLC 114.00 -5.00 190.50 53.11 - -114.00 914.0

Construction & MaterialsAbbey 1305 -5.00 1429 1230 1.14 6.52 0.8AccsysTch 114.50 2.25 116.00 72.00 - -25.71 117.1Aukett 1.30 0.05 3.00 1.00 - -2.03 1350.0

Electronic & Electrical EquipCeresPow 171.00 8.00 209.95 97.09 - -17.45 307.8ElektronT 44.00 - 49.00 16.63 - 31.91 384.2LPA 104.50 - 184.00 95.00 2.44 7.79 2.5ThorpeFW 268.00 - 365.50 219.00 1.85 19.41 7.0Zytronic 367.50 - 539.00 340.00 5.17 13.66 8.9

Financial GeneralArbuthnot 1385 -5.00 1650 1260 2.38 28.21 2.4

BP Marsh 277.00 -4.00 318.00 222.50 1.72 5.06 21.6Burford Capital Ltd♦ 1528 14.00 2075 1000.00 0.54 15.20 377.8Gresham House 487.00 -8.00 515.00 388.00 - -39.74 22.4Leeds 27.00 - 39.00 25.00 - 13.50 2.5MattioliWds 640.00 12.50 865.00 620.00 2.33 20.58 10.7Miton 52.50 -1.00 76.20 35.10 2.67 13.09 400.7Numis 273.50 0.50 449.00 265.00 4.39 8.31 112.6Park Grp 79.00 - 90.00 64.50 3.73 14.11 9.1PolarCap 518.00 -2.00 738.00 445.00 5.41 10.97 10.5Share 25.25 - 28.00 22.00 1.58 -3156.25 2017.5ShoreCap 235.00 -2.00 305.00 200.00 4.26 17.41 0.4STM Group 53.50 - 75.04 32.05 3.36 9.34 27.8

Food & BeveragesCamellia 10700 25.00 13700 9100 1.26 31.77 2.9Fevertree Drinks 2483 91.00 4120 1866 0.43 54.99 536.2FinsbryFd♦ 113.50 - 132.00 102.20 2.73 70.94 19.2Nichols 1437.5 -15.00 1650 1230 2.33 22.48 11.6

Health Care Equip & ServicesAdvnc Med 294.50 2.00 373.50 265.50 0.37 29.10 218.4AVO 38.00 -1.00 64.80 26.50 - -2.35 33.9CareTech 355.00 -2.00 440.00 340.00 2.79 13.79 108.5Cello Hlth 98.10 -0.40 139.88 95.00 3.57 23.25 53.8Tristel♦ 235.00 - 393.00 210.00 1.80 32.06 29.4

House, Leisure & Pers GoodsAirea 53.00 -3.50 74.40 28.51 2.83 15.41 72.6

Churchll 1060 - 1320 780.00 2.32 16.91 3.6Frontier Developments PLC 938.00 74.00 1880 734.00 - 103.08 225.5Mulberry 375.00 -2.50 1075 254.11 1.33 -3750.00 3.7Portmern 980.00 - 1320 445.00 3.54 14.39 8.4TelfordHms 310.00 1.00 474.50 297.50 5.48 6.08 158.2WalkerGb 80.50 -1.00 149.95 59.00 5.43 4.96 80.8

Industrial Engineering600 Grp♦ 16.75 - 19.50 13.80 2.98 14.18 24.5MS Intl 199.50 2.00 238.00 172.00 4.14 9.73 5.3Pres Tech 91.50 4.00 207.44 85.00 - -5.38 16.2

ITKeywords Studios 1336 108.00 2110 1090 0.11 85.55 222.5Learning Technologies Group 90.60 -5.40 166.50 59.00 0.33 87.71 2712.7

LEISURECodemasters Group Holdings PLC 180.50 1.00 280.00 130.00 - -24.44 8.3Sumo Group PLC 143.00 5.00 187.00 93.00 - 0.01 1056.0

MediaM&Csaatc 310.00 -5.00 430.00 295.00 3.07 194.97 11.3MissionMk 66.50 2.00 68.00 37.00 2.33 10.62 260.8YouGov 436.00 6.00 510.00 306.00 0.46 59.73 83.6

MiningAMC 3.00 -0.17 7.90 2.70 - -5.65 1101.6BotswanaD 0.48 - 1.80 0.45 - -3.96 217.0

CentAsiaM 224.00 11.50 345.50 200.00 7.60 9.56 353.6Connema 1.68 - 5.00 1.60 - -0.83 89.3HighldGld 150.00 1.30 181.00 125.10 7.14 9.43 399.4

Oil & GasAmeriRes 12.70 -0.10 22.25 9.50 - 7.98 4014.4BorSthnPet 3.60 0.07 6.00 1.66 - -19.05 383.2ClontarfEn 0.26 0.01 0.67 0.17 - -0.51 1689.4Egdon Res 7.75 1.00 12.50 5.42 - -10.20 497.1Hurricane Energy 44.40 1.56 60.75 25.00 - -14.88 5849.8PetrelRes 1.60 - 3.75 1.40 - -0.42 2.7Phoenix Global 17.63 0.63 53.00 16.50 - -1.16 12.0Rockhop 24.70 0.60 44.95 20.00 - -15.75 1189.5Sound Energy 15.10 -0.16 58.90 13.00 - -10.49 2607.2UnJackOil 0.11 0.01 0.17 0.08 - -5.35 129522.4

Pharmaceuticals & BiotechAbcam 1144 9.00 1588 952.50 0.94 37.88 599.4AllcePharm 68.80 -1.00 102.50 58.00 1.93 13.73 324.6Clinigen Group 871.00 1.50 1116 777.00 0.59 38.71 218.9e-Thera 6.63 - 10.40 5.80 - -3.90 30.0Mereo Bio 190.00 - 352.00 170.00 - -4.13 0.2Reneuron 56.50 - 216.00 51.00 - -1.01 22.9Sareum 0.70 - 1.05 0.65 - -14.00 5337.6

Real EstateInlandHms 49.50 -1.50 74.00 47.50 3.74 6.78 113.6Lok'nStor♦ 427.50 - 449.50 347.00 2.42 33.32 3.6

LXB Retail 12.55 0.05 25.50 11.80 - -1.60 8.4PnthrSec 365.00 10.00 400.00 295.00 1.37 2.60 2.3SIR 379.00 - 403.00 349.00 3.43 8.65 104.0SumGermny € 1.13 0.02 1.28 1.05 2.64 3.15 6.0

RetailersASOS 5074 116.00 7770 4500 - 51.78 337.1Boohoo Group PLC 194.40 3.25 247.80 139.85 - 67.50 4509.5CVS Group PLC 630.00 -20.50 1280 620.00 0.71 39.62 418.5

Support ServicesBegbies 69.50 -0.20 77.00 62.00 3.31 53.46 10.6Christie 106.00 5.50 164.00 90.02 2.59 8.13 10.0Empres 75.50 - 116.00 69.00 1.75 9.81 198.0Gattaca 109.50 -1.75 315.00 95.80 18.26 -1.28 8.1HarvyNah 130.25 - 134.50 76.00 3.30 23.64 0.0Impellam 625.00 - 695.00 430.00 3.28 10.21 2.6JhnsnSrv 123.40 3.40 147.00 112.00 2.27 17.14 91.2LonSec 1950 - 2200 1800 4.10 16.06 0.0NewmkSec 0.84 - 1.47 0.60 - -2.21 4.9NWF♦ 169.50 2.50 215.00 85.00 3.54 10.66 19.1Petards 27.50 0.70 28.80 17.20 - 12.39 309.3RedhallGp 4.50 -0.16 10.00 3.74 - -4.65 21.5Renew 350.00 2.00 460.00 348.00 2.57 25.14 66.6Restore 392.00 -3.00 601.00 213.00 1.28 30.87 230.1SafeCharge 270.00 9.00 355.00 217.00 4.73 22.88 37.1Smart Metering Systems 559.00 4.00 900.00 520.00 0.93 37.74 186.1

Tech - HardwareAminoTech 118.50 - 220.90 110.00 5.81 12.97 87.8IQE 74.30 2.20 176.50 55.00 - 57.15 3351.9Telit Communications PLC 139.00 -1.60 189.50 130.80 - -3.90 666.0

Tech - Software & ServicesBoBlue Prism Group PLC 1422 30.00 2635 995.50 - -76.04 206.5Eckoh 37.50 - 49.00 32.80 1.47 57.69 69.4Elecosoft 72.50 1.50 28074.86 68.00 0.83 27.12 35.4IDE Group Holdings 2.30 - 26.83 2.00 - -0.10 51.2Ingenta 94.50 -4.50 152.01 89.26 1.59 66.55 6.3Iomart 350.00 - 475.00 334.30 2.36 31.22 375.4Oxford Metrics 69.50 - 83.00 57.00 1.73 37.98 234.4RhythmOne 176.00 -4.00 299.50 140.80 - -9.63 111.5SciSys Group 152.50 - 199.90 112.00 1.42 8.11 7.8WANdisco 361.50 -7.50 1268 340.00 - -10.38 40.0

Travel & LeisureCeltic 165.50 - 168.00 125.00 - 14.12 12.6..6%CvPf 155.00 - 170.00 112.80 - - 1.0..Cv Pf 320.00 - 350.00 236.00 - - 0.8Dart 838.50 3.50 1052 630.50 0.89 5.95 374.3gamingrealms 4.64 -0.81 13.50 4.50 - -3.03 1865.7GoalsSocc 72.00 - 92.00 61.00 - 15.00 68.5MinoanGp 2.50 -0.20 8.74 2.02 - -1.52 2393.2PeelHtls 72.00 - 108.00 60.00 - -9.35 0.1

Investment CompaniesConventional (Ex Private Equity) 52 Week Dis(-)

Price +/-Chg High Low Yld NAV or Pm3i Infra♦ 259.70 2.70 272.33 201.50 3.43 222.1 16.9AbnAsianIn 198.00 2.50 225.00 182.00 4.55 224.0 -11.6Abrdn Div I&G 120.00 1.25 126.00 115.00 3.28 120.3 -0.2AbnEmgMkts♦ 530.00 8.00 658.00 498.06 2.88 629.1 -15.8AbnJapInv 570.00 10.00 680.50 515.00 0.91 641.6 -11.2AbnLatAmIn 64.40 1.10 75.20 58.59 5.43 75.2 -14.4AbnNewDn 221.00 5.00 248.00 195.00 1.81 259.7 -14.9AbnNewIndia 444.00 -1.00 497.00 383.00 - 528.9 -16.1AbnNewThai 559.00 14.00 596.50 516.00 1.99 660.7 -15.4AbnSmlInCo 247.50 - 304.00 242.00 2.16 293.8 -15.8AbnStdAsia 1027.5 12.50 1085 914.00 1.17 1209.0 -15.0AStd Eqt Inc 436.00 11.50 514.00 418.27 4.40 437.4 -0.3Abf Sml 1216 -2.00 1444 1170 2.37 1365.2 -10.9Abf Spl Inc 83.30 0.80 106.50 81.80 - 86.8 -4.0Alliance 747.00 9.00 788.00 686.00 1.77 797.3 -6.3AllianzTech 1380 50.00 1645 1065 - 1396.4 -1.2Art Alpha 286.00 6.00 358.00 280.00 1.57 347.9 -17.8Aurora Inv 199.00 -2.00 224.00 196.00 1.38 194.7 2.2Axiom 93.00 - 109.00 93.00 6.45 92.9 0.1BG Japan♦ 815.00 16.00 886.00 745.00 - 776.6 4.9BG Shin 197.60 5.56 998.00 167.00 - - -Baillie Gifford UK 169.00 2.00 200.00 157.00 3.37 184.4 -8.4Bankers 845.00 9.00 926.00 809.00 2.26 872.3 -3.1BH Global 1465 7.50 1515 1340 - 1533.0 -4.4..USD $ 14.70 - 15.10 13.28 - 15.4 -4.5BH Macro 2335 -25.00 2368.3 1940 - 2404.0 -2.9..EUR € 18.57 -0.10 20.85 18.10 - - -..USD $ 24.20 - 24.40 19.20 - 24.5 -1.2BiotechGth 740.00 18.00 854.00 650.00 - 794.3 -6.8BlckRCom 71.70 1.10 86.00 68.22 5.58 77.1 -7.0BlckREmEur 318.50 -0.50 396.53 298.48 3.55 324.7 -1.9BlckRFrnt 142.00 2.00 169.50 131.50 3.39 139.5 1.8BlckRGtEur♦ 331.50 6.00 372.00 308.00 1.64 346.6 -4.4BlckR I&G 184.50 -0.50 214.00 177.40 3.58 192.9 -4.4BlckRckLat 428.00 3.00 499.00 370.00 2.36 517.3 -17.3BlckRckNrAm♦ 180.25 2.50 183.50 144.00 3.19 176.9 1.9BlckRSmlr 1200 -20.00 1600 1200 2.17 1380.2 -13.1BlckRThrmt 460.00 3.00 578.00 452.25 1.96 523.4 -12.1BlckRWld♦ 340.50 9.50 425.00 326.50 4.58 391.9 -13.1BMO Cp&I 306.00 6.00 350.00 290.00 3.50 299.9 2.0BMOGblSmlr 1370 10.00 1380 1315 0.92 1384.4 -1.0BMOMgdT 200.00 1.00 206.00 196.00 - 201.8 -0.9BMOMgdT 130.50 1.00 133.00 126.00 4.29 129.7 0.6BMO UK HIT A 92.50 0.50 96.60 89.00 5.28 99.1 -6.7BMO UK HIT B 92.50 1.00 95.00 90.00 5.28 99.1 -6.7BMO UK HIT UNIT 365.00 2.00 377.00 356.00 - 396.3 -7.9Brit Emp 726.00 8.00 768.00 682.00 1.65 809.2 -10.3Brunner♦ 746.00 1.00 818.00 714.00 2.21 850.5 -12.3Caledonia Inv♦ 2850 - 2920 2515 2.00 3538.6 -19.5

CanGen C$♦ 22.40 0.29 26.25 21.41 3.20 32.2 -30.4City Merch 183.50 1.00 200.00 177.00 5.45 179.7 2.1CityNatRs 96.30 2.20 130.00 92.00 5.82 112.4 -14.3City Lon 403.00 4.00 444.50 384.00 4.33 395.2 2.0DiverseInc 94.40 1.00 111.00 93.20 3.34 95.0 -0.6Dun Inc 244.00 5.00 270.00 235.00 5.13 266.5 -8.4EcofinGlobal 132.00 1.25 135.50 109.00 4.85 146.2 -9.7EdinDragn♦ 370.00 10.00 394.00 322.50 0.89 411.2 -10.0Edin Inv 639.00 8.00 714.00 608.00 4.16 693.4 -7.8Edin WWd 844.00 26.00 1025 680.00 - 851.0 -0.8EP Global 313.00 5.00 331.00 288.00 1.69 331.7 -5.6Euro Ast 101.85 1.10 136.00 97.10 6.48 - -EuroInvT 834.00 12.00 974.00 786.00 2.70 939.1 -11.2F&C Inv Trust 700.00 12.00 702.00 663.00 1.51 694.5 0.8FidAsian♦ 413.00 4.50 423.00 349.00 1.21 406.7 1.5FidChiSpS 206.50 7.10 269.50 181.60 1.69 235.0 -12.1Fid Euro 219.50 2.50 239.00 199.50 1.98 244.2 -10.1Fid Jap 144.00 3.00 167.50 136.00 - 158.7 -9.3Fid Spec 252.00 3.00 281.00 237.00 1.85 247.4 1.9FinsG&I 784.00 9.00 858.00 715.00 1.86 778.3 0.7FstPacfic HK HK$ 3.08 0.06 5.85 2.82 4.22 - -Geiger 22.25 -0.75 27.00 13.00 - 21.2 5.0GenEmer♦ 656.00 15.00 751.00 604.00 1.64 746.8 -12.2GRIT 4.25 -0.21 10.75 1.60 - 6.4 -33.6GoldenPros 18.50 - 36.88 16.50 - 24.9 -25.7Gulf Invest $♦ 1.03 -0.01 1.09 0.84 2.82 1.2 -14.2Hansa 1020 15.00 1160 925.00 1.57 1417.7 -28.1..A 980.00 5.00 1080 787.70 1.63 1417.7 -30.9Hend Alt 274.00 -1.00 305.00 265.00 1.73 342.9 -20.1Hen Div Inc Tr 79.40 -0.20 97.40 79.20 6.42 83.4 -4.8HenEuroF 1145 -20.00 1405 1100 2.58 1268.8 -9.8HenEuro 1057.5 27.50 1235 1000.00 2.46 1147.2 -7.8HenFarEs 350.00 8.00 389.00 316.00 6.11 341.6 2.5HenHigh 169.25 2.25 193.00 162.50 5.61 173.4 -2.4HenInt Inc 164.00 5.00 172.00 149.00 3.17 161.5 1.5Hen Opp 997.00 2.50 1142.3 944.00 2.01 1178.8 -15.4HenSmlr 780.00 8.00 986.00 772.00 2.44 882.2 -11.6Herald 1185 20.00 1380 1060 - 1400.9 -15.4HICL Infra♦ 161.20 0.20 163.90 133.00 4.90 154.6 4.3Highbridge Multi 217.00 0.50 228.00 216.50 - 219.1 -1.0Impax Env. 280.00 6.50 290.00 240.00 0.89 274.9 1.9Ind IT 544.00 13.00 810.00 514.00 1.10 544.5 -0.1IGC 88.50 1.40 120.00 72.60 - 96.5 -8.3IntBiotech 625.00 14.00 700.00 518.00 4.32 624.8 0.0Intl PP 157.20 -0.40 159.80 138.20 4.34 143.6 9.5Inv AsiaTr 267.00 5.00 312.00 238.00 1.61 308.4 -13.4Inv IncGro 260.00 2.00 299.00 250.00 4.21 306.4 -15.1IP EnInc 72.70 -1.30 82.60 70.00 6.88 69.6 4.5IPST BalR 132.00 - 144.00 131.00 - 133.0 -0.8IPST Gbl Eq 197.00 2.00 214.00 191.00 3.40 200.1 -1.5IPST Mngd 101.50 -0.50 103.00 101.00 - 103.7 -2.1

IPST UK Eq 164.00 - 194.00 162.00 3.93 164.6 -0.4IP UKSmall♦ 458.50 -1.50 540.00 450.20 4.56 492.7 -6.9JPM Amer 452.50 8.50 472.50 368.50 1.22 469.0 -3.5JPM Asn 339.00 7.00 381.00 296.00 4.37 388.9 -12.8JPM Brazil 60.50 1.00 73.41 50.00 1.32 75.9 -20.3JPM China 256.00 12.50 345.00 213.00 0.63 288.5 -11.3JPMElct MC 101.00 - 103.00 98.00 0.35 102.2 -1.2..MG♦ 787.50 5.00 867.75 750.00 1.66 805.0 -2.2..MI♦ 102.50 1.00 120.99 98.01 4.39 104.3 -1.7JPM Emrg 859.00 16.00 935.00 758.00 1.28 972.9 -11.7JPM EurGth 275.50 8.00 339.00 262.00 2.49 309.9 -11.1JPM EurInc♦ 155.25 2.50 178.00 140.13 3.93 167.0 -7.0JPM EuSm 358.00 1.00 448.00 349.00 1.31 411.2 -12.9JPM Clavr 694.00 16.00 790.00 666.00 3.82 680.3 2.0JPMGIConv 89.00 - 99.00 87.68 5.06 94.6 -5.9JPM GEI 123.50 5.00 143.00 112.80 3.97 128.9 -4.2JPM Gl Gr&Inc 322.00 7.00 341.00 293.00 3.78 310.7 3.6JPM I&C Uni 388.00 - 394.00 347.20 - - -JPM Ind 682.00 -5.00 785.00 562.44 - 797.4 -14.5JPM JpSm 395.00 9.00 468.00 365.00 1.24 454.2 -13.0JPM Jap♦ 425.00 10.00 473.00 394.00 1.18 467.3 -9.1JPM Mid 1012.5 5.00 1295 981.61 2.27 1082.0 -6.4JPM Mlti-As 94.50 0.40 103.56 91.00 - 101.9 -7.3JPMRussian 522.00 15.00 561.70 446.00 4.02 633.4 -17.6JPM Smlr♦ 202.00 1.05 258.00 196.80 2.28 234.9 -14.0JPM US Sml 318.50 5.50 347.00 263.00 0.78 312.6 1.9KeystoneInv♦■ 1530 - 1845 1515 3.59 1743.5 -12.2Law Deb 576.00 12.00 652.00 546.00 3.00 648.4 -11.2Lazard WorldTst♦ 353.00 6.00 396.00 329.67 3.10 362.2 -2.5LinTrain £ 1217.5 25.00 1320 774.00 1.75 842.1 44.6Lowland 1410 37.50 1590 1340 3.55 1468.2 -4.0Majedie 274.00 4.50 311.00 258.00 3.56 317.6 -13.7Man&Lon 436.50 6.50 542.00 403.59 1.32 490.2 -11.0Marwyn Val 123.50 0.50 162.94 118.00 - 202.4 -39.0MercantIT 187.00 1.00 227.00 184.36 2.94 - -MrchTst 466.00 2.50 542.00 450.00 5.39 477.5 -2.4Mid Wynd 501.50 12.50 545.00 466.00 0.43 500.4 0.2Miton Global 270.50 0.50 298.00 250.00 - 272.9 -0.9Monks 810.00 22.00 874.00 733.00 0.15 786.0 3.1MontanSm 862.50 2.50 990.00 760.00 0.99 944.2 -8.7Mur Inc 742.00 8.00 818.00 700.00 4.82 814.8 -8.9Mur Int 1116 20.00 1298 1044 4.53 1145.2 -2.5NewCtyEgy 16.50 - 17.25 9.00 - - -NewCityHY 58.80 0.20 63.60 54.70 7.52 54.5 7.9New Star IT 105.00 - 119.90 100.00 0.76 152.3 -31.1NorthAmer 1455 50.00 1455 1155 2.71 1477.1 -1.5NthAtSml 2800 20.00 3080 2370 - 3636.9 -23.0Oryx Int 802.50 2.50 844.50 740.00 - 900.3 -10.9PacAsset 290.00 9.50 292.00 233.11 0.90 285.5 1.6PacHorzn 317.00 10.00 395.00 256.75 - 313.6 1.1PerpInc&Gr♦ 325.00 1.00 387.50 320.00 4.31 369.7 -12.1

PerAsset 40100 - 41150 38700 1.40 39783.6

0.8

PolarHealth 228.00 1.50 231.40 175.50 1.16 239.7 -4.9PolarFins 133.00 1.00 147.50 123.50 2.93 139.6 -4.7PolarTech 1222 28.00 1396 1014 - 1276.3 -4.3RIT Cap 2030 20.00 2130 1828 1.60 1876.5 8.2Ruffer Inv Pr 221.50 - 242.00 219.00 0.81 219.9 0.7Schroder ToRt 354.00 13.00 383.00 309.00 1.36 340.8 3.9SchdrAsiaP 421.00 9.00 486.00 375.00 1.33 477.7 -11.9Schdr Inc 274.50 3.00 310.00 263.30 4.52 289.1 -5.1SchdrJap 204.00 2.00 237.00 197.00 1.72 223.0 -8.5SchdrOrient 237.00 3.00 267.00 224.20 3.97 240.0 -1.2SchdrUKMd 483.00 2.00 584.00 477.00 2.71 580.5 -16.8ScotAmer♦ 378.00 7.00 393.00 341.00 2.96 358.9 5.3Scottish Inv 826.00 12.00 902.00 771.00 3.03 902.4 -8.5ScottMort 500.00 4.65 569.00 414.20 0.61 497.7 0.5ScottOrtll 952.00 11.00 1095 840.00 1.21 1133.1 -16.0Seneca I&G♦ 162.75 0.25 179.49 158.50 3.88 160.5 1.4StrategicEq 205.50 -0.50 242.00 202.00 0.38 246.2 -16.5Temp Bar 1196 2.00 1358 1160 3.59 1278.3 -6.4TempEmerg 719.00 16.00 830.00 639.00 2.09 815.1 -11.8Tetragon $ 11.93 -0.10 14.02 9.41 5.49 21.6 -44.8TRIG♦ 113.00 -0.20 115.00 101.00 5.69 106.3 6.3TREurGth 876.00 20.00 1242 830.00 1.88 980.7 -10.7TroyInc&G 76.00 -0.30 80.80 72.60 2.61 76.6 -0.8Utilico Emerging Market♦ 202.50 2.35 233.00 188.00 4.30 236.0 -14.2UIL Inv 171.50 - 185.00 151.00 4.37 - -VEIL 469.00 6.00 502.00 390.00 - 505.3 -7.2Witan♦ 1046 12.00 1140 991.00 2.06 1062.8 -1.6WitanPac 304.00 -0.50 354.00 270.79 1.81 366.3 -17.0WwideHlth♦ 2750 55.00 2920 2320 0.64 2707.2 1.6

Conventional - Private Equity 52 Week Dis(-)Price +/-Chg High Low Yld NAV or Pm

Altamir € 15.06 -0.08 17.34 12.70 4.30 20.0 -24.7BGUSGROWTH 120.00 3.40 135.60 99.60 - 116.3 3.2BMO PvtEq 329.00 -0.50 340.00 326.86 6.44 365.1 -9.9Electra■ 428.50 -4.75 965.00 415.00 - 719.0 -40.4HVPE 1390 14.00 1450 1174 - 1781.6 -22.0HgCapital 1900 -5.00 2030 1675 2.42 2066.5 -8.1ICG Ent Tr♦ 814.00 -4.00 896.00 778.00 2.58 1020.6 -20.2JZ Capital 472.00 -2.00 505.00 432.00 - 770.8 -38.8NB PE Ptnr 1095 -5.00 1150 934.00 - 1376.0 -20.4Nthn Invs 192.00 -1.00 228.60 185.00 - 230.1 -16.6Pantheon 2070 20.00 2170 1775 - 2623.6 -21.1PantheonR 1895 - 1911.25 1460 - - -PrincssPE €♦ 9.91 -0.09 10.95 9.36 5.65 - -Smithson - - - - - 994.4 -StdLfPv 336.50 2.00 356.00 315.00 4.49 413.0 -18.5

Conventional - Property ICs 52 Week Dis(-)Price +/-Chg High Low Yld NAV or Pm

Direct PropertyAEW UK REIT 94.80 - 101.50 92.50 8.44 98.1 -3.4CustdnREIT 115.20 -0.80 122.80 111.00 5.58 104.8 9.9F&CComPrp 134.60 -0.60 155.00 133.00 4.46 140.8 -4.4F&CUKRealE 86.00 -2.20 109.00 86.00 5.81 107.3 -19.9GCP Student 151.60 1.00 154.00 136.00 3.89 - -Longbow 102.00 1.50 106.00 100.00 5.88 98.6 3.4SLIPropInc 86.80 -1.20 97.00 86.70 5.48 90.2 -3.8TR Prop♦ 380.50 -1.00 435.50 356.50 3.21 385.7 -1.3UKComPrp 81.40 -0.70 91.70 79.50 4.52 93.4 -12.8

VCTs 52 Week Dis(-)Price +/-Chg High Low Yld NAV or Pm

ArtemisVCT 60.00 0.50 82.00 59.21 6.67 52.1 15.2Baronsmead 2nd VT 83.75 - 91.59 83.00 8.96 87.7 -4.5BSC VCT 75.50 - 76.00 69.00 5.30 78.6 -3.9..VCT2 56.00 - 57.25 48.50 5.36 58.1 -3.6Inc&GthVCT 69.00 - 74.00 67.00 8.70 77.7 -11.2Nthn 2 VCT 61.50 - 66.00 54.00 8.94 64.7 -4.9Nthn 3 VCT 90.00 - 94.25 81.50 6.11 94.2 -4.5NthnVent♦ 65.00 - 70.90 60.00 7.69 68.8 -5.5ProVenGI 66.00 - 71.50 60.50 3.03 70.5 -6.4ProVenVCT 79.00 - 106.48 78.00 3.16 86.5 -8.7UnicornAIM 130.00 - 147.00 128.00 5.00 150.9 -13.9

Ordinary Income Shares 52 Week HRPrice +/-Chg High Low Yld WO GRY 0%

JPM I&C 99.50 - 103.99 83.50 7.64 - -

Zero Dividend Preference Shares 52 Week HRPrice +/-Chg High Low SP WO TAV 0%

Abf Spl Inc 104.50 - 110.00 102.10 - - -JPM I&C 189.50 - 191.00 186.00 - - -JZ Capital 433.00 - 438.00 426.00 -20.4 -23.4 483.7UIL Limited 2024 ZDP 108.00 - 109.00 103.00 -13.8 -18.5 138.4UILFn18 160.50 - 161.00 157.00 - - -UILFn20 146.50 -0.50 148.58 140.00 -65.1 -91.0 154.9UIL Finance 2022 ZDPs 127.00 - 130.16 122.00 -28.0 -39.5 147.0

Investment Companies - AIM52 Week Dis(-)

Price +/-Chg High Low Yld NAV or PmAbnFrntrMkts♦ 48.00 0.70 65.50 45.00 4.8 56.5 -15.0CrysAmber 207.00 -1.00 239.12 165.00 2.4 225.6 -8.2Gresham House Strategic♦ 922.50 - 1060 800.00 1.9 1236.5 -25.4Infra India 2.10 - 8.35 1.62 - 28.3 -92.6

Guide to FT Share Service

For queries about the FT Share Service pages [email protected] data is as of close of the previous business day. Company classificationsare based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE100 constituent stocks are shown in bold.Closing prices are shown in pence unless otherwise indicated. Highs & lowsare based on intra-day trading over a rolling 52 week period. Price/earningsratios (PER) are based on latest annual reports and accounts and are updatedwith interim figures. PER is calculated using the company’s diluted earningsfrom continuing operations. Yields are based on closing price and on dividendspaid in the last financial year and updated with interim figures. Yields areshown in net terms; dividends on UK companies are net of 10% tax, non-UKcompanies are gross of tax. Highs & lows, yields and PER are adjusted to reflectcapital changes where appropriate.Trading volumes are end of day aggregated totals, rounded to the nearest1,000 shares.Net asset value per share (NAV) and split analytics are provided only as aguide. Discounts and premiums are calculated using the latest cum fair netasset value estimate and closing price. Discounts, premiums, gross redemptionyield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)are displayed as a percentage, NAV and terminal asset value per share (TAV)in pence.

X FT Global 500 company♦ trading ex-dividend■ trading ex-capital distribution# price at time of suspension from trading

The prices listed are indicative and believed accurate at the time of publication.No offer is made by Morningstar or the FT. The FT does not warrant norguarantee that the information is reliable or complete. The FT does not acceptresponsibility and will not be liable for any loss arising from the reliance onor use of the information.

The FT Share Service is a paid-for-print listing service and may not be fullyrepresentative of all LSE-listed companies. This service is available to all listedcompanies, subject to the Editor’s discretion. For new sales enquiries pleaseemail [email protected] or call +44 (0)20 7873 4571.

Data provided by Morningstar

www.morningstar.co.uk

DECEMBER 4 2018 Section:Stats Time: 3/12/2018 - 19:08 User: keith.allen Page Name: SHARE PRICES, Part,Page,Edition: LON, 24, 1


MANAGED FUNDS SERVICE

Fund Bid Offer +/- Yield

Abbey Life Assurance Company Limited (UK)1 Wythall Green Way, Wythall, Birmingham, B47 6WGadditional fund prices can be found @ www.abbeylife.co.ukInsurances

Life Funds

Prop. Acc. Ser 2 1644.50 1731.00 -0.20 -

Selective Acc. Ser 2 1853.80 1951.40 15.00 -

American Ser. 4 2569.30 2704.50 13.20 -

Custodian Ser. 4 559.40 588.90 3.40 -

Equity Ser. 4 670.50 705.80 10.60 -

European Ser 4 735.80 774.50 11.40 -

Fixed Int. Ser. 4 932.60 981.60 -4.20 -

Intl Ser. 4 608.60 640.60 7.10 -

Japan Ser 4 503.40 529.90 5.40 -

Man. Ser. 4 2022.70 2129.20 16.90 -

Money Ser. 4 525.90 553.60 0.00 -

Prop. Ser. 4 1164.00 1225.20 -0.20 -

Custodian Ser 5 533.20 561.20 3.30 -

International Ser 5 580.00 610.50 6.70 -

Managed Ser 5 1927.70 2029.20 16.10 -

Money Ser 5 514.90 542.00 0.00 -

Property Ser 5 1109.30 1167.70 -0.30 -

Pension Funds

American 3187.70 3355.50 19.30 -

Equity 5980.40 6295.10 109.10 -

European 1538.90 1619.90 29.10 -

Fixed Int. 1746.40 1838.30 -9.50 -

International 1354.20 1425.40 17.80 -

Japan 556.60 585.90 7.10 -

Managed 5437.80 5724.00 56.40 -

Property 3055.80 3216.60 -0.60 -

Security 1479.60 1557.50 0.00 -

Selective 2365.20 2489.70 16.20 -

Formerly Hill Samuel Life Assurance Ltd1 Wythall Green Way, Wythall, Birmingham, B47 6WG

Managed Ser A (Life) 1905.50 2016.40 -5.30 -

Managed Ser A (Pensions) 1292.20 1360.20 -4.30 -

Formerly Target Life Assurance Ltd1 Wythall Green Way, Wythall, Birmingham, B47 6WG

Managed (Life) 1918.80 2019.80 -5.30 -

Managed Growth (Life) 638.00 671.60 -1.70 -

Managed (Pensions) 7758.00 8166.30 -25.80 -

Managed Growth (Pensions) 805.40 847.80 -2.70 -

additional fund prices can be found on our website

Algebris Investments (IRL)Regulated

Algebris Financial Credit Fund - Class I EUR € 145.41 - -1.55 0.00

Algebris Financial Income Fund - Class I EUR € 128.64 - -0.31 0.00

Algebris Financial Equity Fund - Class B EUR € 109.73 - -0.70 0.00

Algebris Asset Allocation Fund - Class B EUR € 98.18 - -0.05 0.00

Algebris Macro Credit B EUR Acc € 97.07 - -0.34 0.00

Algebris Core Italy Fund - Class R EUR € 88.43 - -0.16 0.00

The Antares European Fund LimitedOther International

AEF Ltd Usd (Est) $ 574.31 - -1.31 -

AEF Ltd Eur (Est) € 553.38 - -1.48 0.00

Arisaig PartnersOther International Funds

Arisaig Africa Consumer Fund Limited $ 11.71 - 0.02 0.00

Arisaig Asia Consumer Fund Limited $ 87.59 - 0.29 0.00

Arisaig Global Emerging Markets Consumer Fund $ 10.73 - 0.02 0.00

Arisaig Global Emerging Markets Consumer UCITS € 12.15 - 0.09 0.00

Arisaig Global Emerging Markets Consumer UCITS STG £ 13.69 - 0.04 0.00

Arisaig Latin America Consumer Fund $ 24.28 - -0.22 0.00

Artemis Fund Managers Ltd (1200)F (UK)57 St. James's Street, London SW1A 1LD 0800 092 2051Authorised Inv Funds

Artemis Capital R ACC 1459.93 1467.08 24.86 1.79

Artemis European Growth R Acc 304.57 305.24 5.26 0.99

Artemis European Opps R Acc 101.76 101.97 1.52 0.78

Artemis Global Emg Mkts I GBP Acc 134.23 - 2.98 -

Artemis Global Emg Mkts I GBP Dist 124.06 - 2.75 -

Artemis Global Energy R Acc 32.12 32.21 0.56 0.60

Artemis Global Growth R Acc 265.88 266.43 7.04 0.92

Artemis Global Income R Acc 125.94 126.25 3.01 3.15

Artemis Global Income R Inc 91.78 92.00 2.20 3.22

Artemis Global select R Acc 109.00 109.19 2.22 0.00

Artemis High Income R Inc 73.38 73.98 0.19 6.06

Artemis Income R Acc 403.53 406.00 5.19 4.43

Artemis Income R Inc 208.95 210.22 2.70 4.58

Artemis Monthly Dist R Inc 66.66 67.12 0.29 4.52

Artemis Pan-Euro Abs Ret GBP 120.90 - 1.66 -

Artemis Strategic Assets R Acc 80.93 81.39 0.55 0.00

Artemis Strategic Bond R M Acc 93.21 93.84 0.02 3.55

Artemis Strategic Bond R M Inc 54.29 54.66 -0.13 3.62

Artemis Strategic Bond R Q Acc 93.38 94.02 0.02 3.52

Artemis Strategic Bond R Q Inc 54.55 54.92 0.01 3.59

Artemis UK Select Fund Class R Acc 480.37 483.40 6.16 1.34

Artemis UK Smaller Cos R Acc 1560.47 1592.41 4.67 1.34

Artemis UK Special Sits R Acc 541.26 545.60 3.37 1.69

Artemis US Abs Ret I Acc 114.21 - -0.15 0.00

Artemis US Equity I Acc 197.12 - 4.80 0.13

Artemis US Ex Alpha I Acc 213.68 - 4.63 0.00

Artemis US Extended Alpha I Hedged Acc £ 1.42 - 0.03 0.00

Artemis US Select I Acc 203.34 - 4.88 0.07

Artemis US Select I Hedged Acc £ 1.45 - 0.03 0.08

Artemis US Select I Inc 180.51 - 4.34 0.07

Artemis US Smlr Cos I Acc 229.57 - 4.80 0.00

Ashmore Investment Management Limited (LUX)2 rue Albert Borschette L-1246 LuxembourgFCA Recognised

Ashmore SICAV Emerging Market Debt Fund $ 90.94 - 0.18 5.18

Ashmore SICAV Emerging Market Frontier Equity Fund $ 159.31 - 0.03 0.79

Ashmore SICAV Emerging Market Total Return Fund $ 81.68 - -0.12 4.93

Ashmore SICAV Global Small Cap Equity Fund $ 137.61 - 1.26 0.73

EM Active Equity Fund Acc USD $ 120.87 - -0.26 0.00

EM Equity Fund Acc USD $ 90.85 - 0.41 -

EM Mkts Corp.Debt USD F $ 90.85 - -0.03 5.86

EM Mkts Loc.Ccy Bd USD F $ 77.38 - -0.43 5.80

EM Short Duration Fund Acc USD $ 137.07 - 0.02 0.00


Aspect Capital Ltd (UK)Other International Funds

Aspect Diversified USD $ 355.56 - 7.27 0.00

Aspect Diversified EUR € 201.01 - 4.02 0.00

Aspect Diversified GBP £ 106.11 - 2.18 0.00

Aspect Diversified CHF SFr 94.43 - 1.88 0.00

Aspect Diversified Trends USD $ 104.57 - 0.30 0.00

Aspect Diversified Trends EUR € 98.88 - 0.29 0.00

Aspect Diversified Trends GBP £ 105.63 - 0.30 0.00

Atlantas Sicav (LUX)Regulated

American Dynamic $ 4558.69 4558.69 63.01 0.00

American One $ 4237.84 4237.84 10.44 0.00

Bond Global € 1440.08 1440.08 11.47 0.00

Eurocroissance € 950.79 950.79 7.67 0.00

Far East $ 823.88 - 6.36 0.00

Barclays Investment Funds (CI) Ltd (JER)39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800FCA RecognisedBond Funds

Sterling Bond F £ 0.46 - 0.00 2.68

CCLA Investment Management Ltd (UK)Senator House 85 Queen Victoria Street London EC4V 4ETAuthorised Inv Funds

Diversified Income 1 Units GBP Inc £ 1.55 1.55 0.01 3.12

Diversified Income 2 Units GBP Inc £ 1.49 1.49 0.00 3.13

Diversified Income 3 Units GBP Inc £ 1.50 1.50 0.00 -

The Public Sector Deposit Fund

The Public Sector Deposit Fund-share class 1 ♦ F * 100.00 - 0.00 0.79

The Public Sector Deposit Fund-share class 4 ♦ F * 100.00 - 0.00 0.73

CCLA Investment Management Ltd (UK)Senator House 85 Queen Victoria Street London EC4V 4ETProperty & Other UK Unit TrustsCBF Church of England Funds

Investment Inc 1693.25 1701.43 24.75 3.26

Investment Acc 3833.50 3852.02 56.05 0.00

Global Equity Inc 192.56 192.89 4.73 3.76

Global Equity Acc 317.25 317.79 7.80 0.00

UK Equity Inc 165.99 166.44 0.24 3.67

UK Equity Acc 275.23 275.97 0.40 0.00

Fixed Interest Inc 160.31 160.91 -0.26 4.11

Fixed Interest Acc 548.99 551.05 -0.90 0.00

Property Fund Inc 139.44 144.12 0.11 5.33

CCLA Fund Managers Ltd (UK)Senator House 85 Queen Victoria Street London EC4V 4ETProperty & Other UK Unit TrustsCOIF Charity Funds (UK)

Investment Inc 1505.64 1512.91 2.17 2.55

Investment Acc 16085.30 16163.02 23.20 0.00

Ethical Invest Inc 230.49 231.61 0.29 2.61

Ethical Invest Acc 330.34 331.94 0.43 0.00

Global Equity Inc 180.42 180.73 0.54 2.74

Global Equity Acc 300.54 301.06 0.89 0.00

Fixed Interest Inc 133.05 133.55 -0.12 2.50

Fixed Interest Acc 848.35 851.54 -0.77 0.00

Property Inc 119.45 123.45 0.05 5.36

Local Authorities Property Fd (LAMIT) (UK)

Property 298.95 324.15 -0.02 4.81

CG Asset Management Limited (IRL)25 Moorgate, London, EC2R 6AYDealing: Tel. +353 1434 5098 Fax. +353 1542 2859FCA Recognised

Capital Gearing Portfolio Inc £ 32463.70 32463.70 214.68 0.72

CG Portfolio Fund Plc

Absolute Return Cls M Inc £ 118.31 118.31 -0.08 1.28

Capital Value Cls V Inc £ 156.50 156.50 1.03 0.89

Dollar Fund Cls D Inc £ 151.06 151.06 0.52 1.97

Dollar Hedged GBP Inc £ 92.90 92.90 0.18 2.14

Real Return Cls A Inc £ 191.28 191.28 0.35 2.76

Charles Schwab Worldwide Funds Plc (IRL)Regulated

Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.84

Chartered Asset Management Pte LtdOther International Funds

CAM-GTF Limited $ 271939.82 271939.82 -488.41 0.00

CAM GTi Limited $ 593.63 - -6.48 0.00

Raffles-Asia Investment Company $ 1.38 1.38 -0.12 1.43

Cheyne Capital Management (UK) LLPOther International Funds

Cheyne European Event Driven Fund (M) € 144.16 - -0.70 -

price updated (D) daily, (W) weekly, (M) monthly

Consistent Unit Tst Mgt Co Ltd (1200)F (UK)Stuart House, St John's Street, Peterborough, PE1 5DDDealing & Client Services 0345 850 8818Authorised Inv Funds

Consistent UT Inc 46.19 47.15 -0.43 3.12

Consistent UT Acc 120.50 123.00 -1.10 3.12

Practical Investment Inc 223.50 238.20 3.10 3.35

Practical Investment Acc 1209.00 1289.00 17.00 3.35

DAVIS Funds SICAV (LUX)Regulated

Davis Value A $ 50.35 - 0.25 0.00

Davis Global A $ 34.82 - 0.29 0.00

Dodge & Cox Worldwide Funds (IRL)6 Duke Street,St.James,London SW1Y 6BNwww.dodgeandcox.worldwide.com 020 3713 7664FCA RecognisedDodge & Cox Worldwide Funds plc - Global Bond Fund

EUR Accumulating Class € 12.84 - 0.09 0.00

EUR Accumulating Class (H) € 9.81 - 0.01 0.00

EUR Distributing Class € 10.95 - 0.07 3.80

EUR Distributing Class (H) € 8.35 - 0.00 4.06

GBP Distributing Class £ 11.83 - 0.04 3.85

GBP Distributing Class (H) £ 8.68 - 0.01 3.65

USD Accumulating Class $ 10.48 - 0.00 0.00

Dodge & Cox Worldwide Funds plc-Global Stock Fund

USD Accumulating Share Class $ 21.00 - 0.00 0.00

GBP Accumulating Share Class £ 27.12 - 0.08 0.00

GBP Distributing Share class £ 19.27 - 0.06 0.94

EUR Accumulating Share Class € 27.86 - 0.16 0.00



Dodge & Cox Worldwide Funds plc-International Stock Fund



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


GBP Accumulating Share Class £ 32.25 - 0.24 0.00

GBP Distributing Share Class £ 20.09 - 0.15 0.65



Dragon Capital Group1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, VietnamFund information, dealing and administration: [email protected] International Funds

Vietnam Property Fund (VPF) NAV $ 0.80 - 0.03 0.00

DSM Capital Partners Funds (LUX)www.dsmsicav.comRegulated

DSM Global Growth I2 € 182.06 - 3.21 0.00

DSM Global Growth I2 A$ 102.76 - 1.38 0.00

DSM Global Growth I1 € 110.88 - 1.96 -

DSM US Large Cap Growth A $ 149.64 - 1.78 0.00

DSM US Large Cap Growth I2 € 132.37 - 2.31 0.00

Asset Management Asset ManagementAsset Management Asset ManagementAsset Management Asset ManagementAsset Management Asset Management

E.I. Sturdza Strategic Management Limited(GSY)Regulated

Strat Evarich Japan Fd Ltd JPY ¥ 77772.00 - 689.00 0.00

Strat Evarich Japan Fd Ltd USD $ 780.28 - 6.33 0.00

EdenTree Investment Management Ltd (UK)PO Box 3733, Swindon, SN4 4BG, 0800 358 3010Authorised Inv Funds

Amity UK Cls A Inc 222.30 - 1.50 1.53

Amity UK Cls B Inc 222.80 - 1.40 2.37

Higher Income Cls A Inc 132.80 - 0.90 4.68

Higher Income Cls B Inc 138.90 - 0.90 4.58

UK Equity Growth Cls A Inc 269.50 - 3.60 1.11

UK Equity Growth Cls B Inc 276.60 - 3.70 1.92

Amity Balanced For Charities A Inc 108.20 - 0.60 5.49

Amity European Fund Cls A Inc 254.00 - 3.00 1.55

Amity European Fund Cls B Inc 257.40 - 3.10 2.41

Amity Global Equity Inc for Charities A Inc 131.30 - 2.10 3.43

Amity International Cls A Inc 268.50 - 4.80 1.34

Amity International Cls B Inc 271.90 - 4.80 2.09

Amity Sterling Bond Fund A Inc 102.20 - 0.00 4.11

Amity Sterling Bond Fund B Inc 112.50 - 0.00 4.11

Edinburgh Partners Limited (IRL)27-31 Melville Street, Edinburgh EH3 7JFTel: +353 1 434 5143 Dealing - Fax +353 1 434 5230FCA RecognisedEdinburgh Partners Opportunities Fund PLC

Emerging Opportunities I USD $ $ 1.24 - -0.01 1.54

European Opportunities I EUR € 2.47 - -0.01 2.07

European Opportunities I GBP £ 2.19 - -0.01 1.80

European Opportunities A EUR € 2.42 - -0.01 1.03

Global Opportunities I USD $ 1.85 - 0.00 1.45

Global Opportunities I GBP £ 1.45 - 0.00 1.15

Pan European Opportunities I EUR € 1.78 - 0.00 -

Electric & General (1000)F (UK)Stuart House St.John's Street Peterborough PE1 5DDOrders & Enquiries: 0845 850 0255Authorised Inv FundsAuthorised Corporate Director - Carvetian Capital Management

Electric&General Net Income A 205.40 - 1.90 1.19

Ennismore Smaller Cos Plc (IRL)5 Kensington Church St, London W8 4LD 020 7368 4220FCA Recognised

Ennismore European Smlr Cos NAV £ 132.59 - 0.25 0.00

Ennismore European Smlr Cos NAV € 149.41 - 0.90 0.00

Ennismore European Smlr Cos Hedge FdOther International Funds

NAV € 550.79 - 0.25 0.00

Equinox Fund Mgmt (Guernsey) Limited (GSY)Regulated

Equinox Russian Opportunities Fund Limited $ 157.98 - -7.54 0.00

Euronova Asset Management UK LLP (CYM)Regulated

Smaller Cos Cls One Shares € 42.98 - -0.06 0.00

Smaller Cos Cls Two Shares € 28.91 - -0.04 0.00

Smaller Cos Cls Three Shares € 14.67 - -0.02 0.00

Smaller Cos Cls Four Shares € 18.88 - -0.02 0.00

FIL Investment Services (UK) Limited (1200)F (UK)130, Tonbridge Rd, Tonbridge TN11 9DZCallfree: Private Clients 0800 414161Broker Dealings: 0800 414 181OEIC Funds

Allocator World Fund N-ACC-GBP £ 1.64 - -0.01 0.99

American Fund W-ACC-GBP £ 43.42 - 0.97 0.35

American Special Sits W-ACC-GBP £ 16.66 - 0.39 0.53

Asia Pacific Ops W-Acc £ 1.86 - 0.05 1.11

Cash Fund Y-Acc-GBP £ 1.01 - 0.00 0.20

Cash Fund Y-Inc-GBP £ 1.00 - 0.00 0.43

Asian Dividend Fund W-ACC-GBP £ 1.82 - 0.04 2.26

Asian Dividend Fund W-INC-GBP £ 1.57 - 0.03 3.29

China Consumer Fund W-ACC-GBP £ 2.67 - 0.08 0.49

Emerging Asia Fund W-ACC-GBP £ 1.46 - 0.04 0.55

Emerging Eur Mid East and Africa W £ 2.09 - 0.06 1.76

Enhanced Income Fund W-ACC-GBP £ 1.40 - 0.01 6.66

Enhanced Income Fund W-INC-GBP £ 0.93 - 0.00 7.23

European Fund W-ACC-GBP £ 15.84 - 0.21 1.57

European Fund W-INC-GBP £ 17.39 - 0.23 1.61

European Opportunities W-ACC-GBP £ 4.45 - 0.09 0.90

Extra Income Fund Y-ACC-GBP £ 1.24 - 0.00 3.61

Extra Income Fund Y-GACC-GBP £ 1.31 - 0.00 3.73

Extra Income Fund Y-GINC-GBP £ 1.29 - 0.00 3.61

Extra Income Fund Y-INC-GBP £ 1.21 - -0.01 3.62

Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.01 - 0.01 -

Fidelity Short Dated Corporate Bond Fund Y - Gross Inc £ 9.51 - -0.10 3.90


Fidelity Short Dated Corporate Bond Fund Y - Gross Acc £ 10.31 - 0.00 3.97

Global Dividend Fund W-ACC-GBP £ 2.17 - 0.03 2.66

Global Dividend Fund W-INC-GBP £ 1.81 - 0.02 2.95

Global Enhanced Income W-ACC-GBP £ 1.76 - 0.02 3.60

Global Enhanced Income W-INC-GBP £ 1.37 - 0.00 4.78

Global Focus Fund W-ACC-GBP £ 22.48 - 0.32 0.34

Global High Yield Fund Y-ACC-GBP £ 13.84 - 0.02 3.69

Global High Yield Fund Y-GACC-GBP £ 14.69 - -0.01 3.57

Global High Yield Fund Y-GINC-GBP £ 10.70 - -0.03 3.59

Global High Yield Fund Y-INC-GBP £ 10.25 - -0.02 3.46

Global Property Fund W-ACC-GBP £ 1.85 - 0.04 1.74

Global Property W Inc £ 1.54 - 0.04 2.54

Global Special Sits W-ACC-GBP £ 38.78 - 0.77 0.64

Index Emerging Markets P-Acc £ 1.52 - 0.04 2.05

Index Emerging Markets P-Inc-GBP £ 1.25 - 0.03 2.21

Index Europe ex UK Fund P-Inc-GBP £ 1.29 - 0.02 2.50

Index Europe ex UK P-Acc £ 1.39 - 0.02 2.24

Index Japan Fund P-Inc-GBP £ 1.54 - 0.02 1.85

Index Japan P-Acc £ 1.64 - 0.03 1.68

Index Pacific ex Japan P-Acc £ 1.56 - 0.05 3.46

Index Pacific ex Japan P-INC-GBP £ 1.18 - 0.02 3.57

Index UK Fund P-INC-GBP £ 1.11 - 0.01 3.45

Index UK P-Acc £ 1.29 - 0.03 2.83

Index US Fund P-Inc-GBP £ 1.91 - 0.04 1.46

Index US P-Acc £ 2.16 - 0.05 1.41

Index World Fund P-Inc-GBP £ 1.61 - 0.03 1.86

Index World P-Acc £ 1.82 - 0.04 1.74

Japan Fund W-ACC-GBP £ 3.77 - 0.08 0.45

Japan Smaller Cos Fund W-ACC-GBP £ 3.30 - 0.07 0.28

MoneyBuilder Balanced Y-ACC-GBP £ 0.55 - 0.01 3.60

MoneyBuilder Balanced Y-INC-GBP £ 0.56 - 0.00 4.39

MoneyBuilder Dividend Y-INC-GBP £ 1.24 - 0.00 4.93

MoneyBuilder Growth Fund Y-INC-GBP £ 0.75 - 0.01 2.59

MoneyBuilder Income Fund Y-ACC-GBP £ 12.58 - -0.02 3.25

MoneyBuilder Income Fund Y-GACC-GBP £ 14.90 - -0.04 3.24

MoneyBuilder Income Fund Y-GINC-GBP £ 1.25 - 0.00 3.30

MoneyBuilder Income Fund Y-INC-GBP £ 1.18 - 0.00 3.31

Multi Asset Adventurous N-ACC-GBP £ 1.44 - 0.00 1.58

Multi Asset Alloc Advent N-ACC-GBP £ 1.37 - 0.00 1.23

Multi Asset Alloc Def N-ACC-GBP £ 1.17 - 0.00 1.02

Multi Asset Alloc Def N-GACC-GBP £ 1.18 - 0.00 1.02

Multi Asset Alloc Growth N-ACC-GBP £ 1.26 - 0.00 1.12

Multi Asset Alloc Strat N-ACC-GBP £ 1.23 - 0.00 1.01

Multi Asset Balanced Inc N-GINC-GBP £ 1.11 - -0.01 4.08

Multi Asset Balanced Inc N-INC-GBP £ 1.07 - -0.01 3.90

Multi Asset Defensive N-ACC-GBP £ 1.21 - 0.00 0.90

Multi Asset Defensive N-GACC-GBP £ 1.22 - 0.00 1.02

Multi Asset Growth Fund N-ACC-GBP £ 1.32 - 0.00 1.43

Multi Asset Inc & Growth N-INC-GBP £ 1.09 - 0.00 4.06

Multi Asset Income Fund N-GINC-GBP £ 1.08 - 0.00 4.12

Multi Asset Income Fund N-INC-GBP £ 1.04 - 0.00 4.19

Fidelity Asia Fund W-ACC-GBP £ 13.05 - 0.35 0.79

Multi Asset Open Advent N-ACC-GBP £ 1.36 - 0.00 0.74

Multi Asset Open Defen N-ACC-GBP £ 1.21 - 0.00 1.23

Multi Asset Open Defen N-GACC-GBP £ 1.23 - 0.00 1.03

Multi Asset Open Growth N-ACC-GBP £ 1.31 - 0.00 1.23

Multi Asset Open Strat N-ACC-GBP £ 1.28 - 0.01 1.30

Multi Asset Strategic N-ACC-GBP £ 1.29 - 0.00 1.31

Open World Fund N-ACC-GBP £ 1.64 - 0.01 0.44

Special Situations Fund W-ACC-GBP £ 34.88 - 0.41 1.72

Sterling Core Plus Bond GMACC £ 11.80 - -0.05 2.28

Sterling Core Plus Red Dur £ 11.05 - -0.03 1.94

Strategic Bond Fund Y-ACC-GBP £ 1.17 - 0.01 2.21

Strategic Bond Fund Y-GACC-GBP £ 1.22 - 0.00 3.03

Strategic Bond Fund Y-GINC-GBP £ 1.24 - -0.01 2.70

Strategic Bond Fund Y-INC-GBP £ 1.17 - -0.01 1.89

Target 2020 A-ACC-GBP £ 0.66 - 0.00 0.45

Target 2025 A-ACC-GBP £ 1.64 - 0.01 0.50

Target 2030 A-ACC-GBP £ 1.85 - 0.00 0.56

UK Invest Grade Long Credit GACC £ 112.20 - -0.30 2.49

UK Opportunities Fund W-ACC-GBP 219.10 - 2.80 1.26

UK Opportunities Fund W-INC-GBP 121.50 - 1.50 1.31

UK Select Fund W-ACC-GBP £ 2.88 - 0.03 1.75

UK Smaller Companies W-ACC-GBP £ 2.39 - 0.01 1.44

WealthBuilder Fund N-ACC-GBP £ 1.59 - 0.01 1.61

Institutional OEIC Funds

America £ 6.27 - 0.16 0.32

Emerging Markets £ 4.38 - 0.12 0.98

Europe (ex-UK) Fund ACC-GBP £ 5.22 - 0.06 1.27

Fidelity Pre-Retirement Bond Fund £ 135.70 - -0.40 2.24

Global Focus £ 4.52 - 0.10 0.54

Index Linked Bond £ 3.18 - 0.00 0.33

Index Linked Bond Gross £ 3.88 - -0.01 0.34

Japan £ 3.01 - 0.06 0.37

Long Bond £ 0.54 - -0.01 1.98

Long Bond Gross £ 0.95 - -0.01 1.95

Long Bond Fund Gross Inc £ 12.70 - -0.08 2.16

Pacific (Ex Japan) £ 4.98 - 0.18 2.02

Select Emerging Markets Equities £ 1.81 - 0.05 0.82

Select Global Equities £ 4.36 - 0.10 0.99

South East Asia £ 5.67 - 0.16 1.55

Sterling Core Plus Bond Gr Accum £ 2.40 - -0.01 2.42

Sterling Core Plus Bond Inc £ 1.45 - -0.01 2.46

UK £ 4.09 - 0.05 2.35

UK Aggreg Bond Gr Accum £ 2.06 - 0.00 2.07

UK Corporate Bond £ 1.26 - -0.01 2.60

UK Corporate Bond - Gross £ 2.56 - 0.00 2.55

UK Corporate Bond Fund Gross Inc £ 11.77 - 0.02 2.85

UK Gilt Fund Inc £ 1.34 - 0.00 1.52

UK Gilt Gross £ 2.24 - 0.00 1.51

UK Long Corp Bond £ 1.46 - 0.00 2.93

UK Long Corp Bond - Gross £ 2.90 - -0.01 2.87

UK Long Corporate Bond - Gross Inc £ 12.23 - 0.04 2.99

Retail Share Classes

Emerging Markets - retail £ 1.71 - 0.05 0.31

{*}CAR - Net income reinvested

Findlay Park Funds Plc (IRL)30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900FCA Recognised

American Fund USD Class $ 116.42 - 0.76 0.00

American Fund GBP Hedged £ 61.16 - 0.40 0.00

American Fund GBP Unhedged £ 91.23 - 0.72 0.00

Foord Asset ManagementWebsite: www.foord.com - Email: [email protected] Recognised - Luxembourg UCITS

Foord International Fund | R $ 38.59 - 0.03 -

Foord Global Equity Fund (Lux) | R $ 12.01 - 0.03 -

Regulated

Foord Global Equity Fund (Sing) | B $ 14.54 - 0.04 0.00

Foord International Trust (Gsy) $ 38.29 - 0.03 0.00


Franklin Templeton International Services Sarl (IRL)JPMorgan House - International Financial Services Centre,Dublin 1, IrelandOther International FundsFranklin Emerging Market Debt Opportunities Fund Plc

Franklin Emg Mkts Debt Opp CHFSFr 16.21 - -0.03 9.74

Franklin Emg Mkts Debt Opp GBP £ 10.28 - 0.02 7.20

Franklin Emg Mkts Debt Opp SGD S$ 21.95 - -0.01 5.49

Franklin Emg Mkts Debt Opp USD $ 17.06 - 0.05 7.13


Fundsmith LLP (1200)F (UK)PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815www.fundsmith.co.uk, [email protected] Inv Funds

Fundsmith Equity T Acc 400.71 - 3.75 0.52

Fundsmith Equity T Inc 370.30 - 3.47 0.53

[email protected], www.funds.gam.comRegulated

LAPIS TOP 25 DIV.YLD-D £ 107.92 - 0.78 2.05

GYS Investment Management Ltd (GSY)Regulated

Taurus Emerging Fund Ltd $ 114.67 117.01 0.02 0.00

Genesis Asset Managers LLPOther International Funds

Emerging Mkts NAV £ 7.36 - -0.02 0.00

Global Investment House

Global GCC Islamic Fund $ 105.35 - -0.03 0.00

Global GCC Large Cap Fund $ 162.67 - 0.05 0.00

Global Saudi Equity Fund SR 245.02 - 2.92 0.00

HPB Assurance LtdAnglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490International Insurances

Holiday Property Bond Ser 1 £ 0.54 - 0.00 0.00

Holiday Property Bond Ser 2 £ 0.66 - 0.00 0.00

HaussmannOther International Funds

Haussmann Cls A $ 2739.50 - 1.44 0.00

Haussmann Cls C € 2248.93 - -2.00 0.00

Haussmann Cls D SFr 1172.33 - -1.33 0.00


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

Hermes Abs Return Credit Fund Class F Acc £ 1.26 1.26 0.00 0.00

Hermes Abs Return Credit Fund Class F Acc USD € 1.92 1.92 -0.01 0.00

Hermes Asia Ex-Japan Equity Fund Class C Acc GBP £ 2.56 2.56 0.06 0.00

Hermes Asia Ex-Japan Equity Fund Class C Acc USD € 4.46 4.46 0.10 0.00

Hermes Europe Ex-UK Equity Fund Class F Acc £ 1.99 1.99 0.04 0.00

Hermes Europe Ex-UK Equity Fund Class F Acc EUR € 3.75 3.75 0.07 0.00

Hermes European Alpha Equity Fund Class F Acc £ 1.67 1.67 0.04 0.00

Hermes European Alpha Equity Fund Class F Dis £ 1.56 1.56 0.03 1.35

Hermes European Alpha Equity Fund Class F Acc EUR € 3.24 3.24 0.06 0.00

Hermes GEMs SMID Equity Fund Class F GBP Acc £ 1.06 - 0.02 -

Hermes Global Emerging Markets Fund Class F Acc £ 1.91 1.91 0.04 0.00

Hermes Global Emerging Markets Fund Class F Acc USD € 3.91 3.91 0.09 0.00

Hermes Global Equity Fund Class F Acc £ 2.36 2.36 0.06 0.00

Hermes Global Equity Fund Class R Acc USD € 4.99 4.99 0.13 0.00

Hermes Global ESG Equity Fund Class F Acc £ 1.75 1.75 0.04 0.00

Hermes Global High Yield Credit Fund Class F Acc £ 1.44 1.44 -0.01 0.00

Hermes Global High Yield Credit Fund Class F Acc EUR € 3.03 3.03 -0.01 0.00

Hermes Global Small Cap Fund Class F Acc £ 1.57 1.57 0.03 0.00

Hermes Global Small Cap Fund Class F Acc USD € 2.17 2.17 -0.01 0.00

Hermes Impact Opportunities Equity Fund F $ 1.92 - 0.03 -

Hermes Impact Opportunities Equity Fund F £ 1.02 - 0.02 -

Hermes Multi Strategy Credit Fund Class F Acc Hed £ 1.11 1.11 -0.01 0.00

Hermes SDG Engagement Equity Fund F $ 2.11 - 0.04 -

Hermes SDG Engagement Equity Fund F £ 1.11 - 0.03 -

Hermes Unconstrained Credit Fund Class F USD Acc $ 1.98 - 0.00 -

Hermes US SMID Equity Fund Class F Acc £ 2.57 2.57 0.04 0.00

Hermes US SMID Equity Fund Class F Acc USD € 4.40 4.40 0.06 0.00

Hermes Property Unit Trust (UK)Property & Other UK Unit Trusts

Property £ 6.71 7.22 0.07 3.59

INDIA VALUE INVESTMENTS LIMITED (INVIL)www.invil.muOther International Funds

NAV £ 8.61 - 0.12 0.00

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

IVI European Fund EUR € 20.78 - -0.08 0.00

IVI European Fund GBP £ 24.68 - -0.20 0.00

Janus Henderson Investors (UK)PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832www.janushenderson.comAuthorised Inv Funds

Janus Henderson Asia Pacific Capital Growth Fund A Acc 1082.00 - 28.00 0.46

Janus Henderson Asian Dividend Income Unit Trust Inc 100.69 105.78 2.42 6.56

Janus Henderson Cautious Managed Fund A Acc 258.30 - 2.00 3.53

Janus Henderson Cautious Managed Fund A Inc 144.70 - 1.10 3.61

Janus Henderson China Opportunities Fund A Acc 1324.00 - 50.00 0.53

Janus Henderson Emerging Markets Opportunities Fund A Acc 196.40 - 1.90 0.32

Janus Henderson European Growth Fund A Acc 218.50 - 3.30 0.83

Janus Henderson European Selected Opportunities Fund A Acc 1606.00 - 27.00 0.36

Janus Henderson Fixed Interest Monthly Income Fund Inc 20.69 21.59 -0.18 4.62

Janus Henderson Global Sustainable Equity Fund A Inc 295.10 - 4.40 0.02

Janus Henderson Global Equity Income Fund A Inc 60.67 - 0.47 3.22

Janus Henderson Global Equity Fund Acc 3188.18 3325.52 35.17 0.00

Janus Henderson Global Technology Fund A Acc 1770.00 - 27.00 0.00

Janus Henderson Multi-Asset Absolute Return Fund A Acc 140.70 - 0.20 0.84

Janus Henderson Multi-Manager Active Fund A Acc 222.40 - 1.60 0.00

Janus Henderson Multi-Manager Distribution Fund A Inc 129.50 - 0.00 3.08

Janus Henderson Multi-Manager Diversified Fund A Acc 83.92 - -0.08 3.04

Janus Henderson Multi-Manager Global Select Fund Acc 242.90 - 2.10 0.00

Janus Henderson Multi-Manager Income & Growth Fund A Acc 173.30 - 0.00 2.46

Janus Henderson Multi-Manager Income & Growth Fund A Inc 148.90 - 0.00 2.49

Janus Henderson Multi-Manager Managed Fund A Acc 273.90 - 1.60 0.03

Janus Henderson Multi-Manager Managed Fund A Inc 266.90 - 1.60 0.02


Janus Henderson Sterling Bond Unit Trust Acc 216.21 225.54 -0.39 2.12

Janus Henderson Sterling Bond Unit Trust Inc 62.90 65.61 -0.11 2.14

Janus Henderson Strategic Bond Fund A Inc 119.00 - 0.00 3.51

Janus Henderson UK & Irish Smaller Companies Fund A Acc 569.10 - 6.30 0.72

Janus Henderson UK Absolute Return Fund A Acc 153.90 - 0.00 0.00

Janus Henderson UK Alpha Fund A Acc 139.20 - 1.80 1.63

Janus Henderson UK Equity Income & Growth Fund A Inc 575.80 - 8.00 4.12

Janus Henderson UK Index Fund A Acc 608.60 - 10.40 2.96

Janus Henderson UK Property PAIF A Acc £ 2.32 2.44 0.00 3.19

Janus Henderson UK Property PAIF A Inc £ 1.02 1.07 -0.01 3.26

Janus Henderson UK Tracker Fund A Acc 275.50 - 5.00 3.10

Janus Henderson US Growth Fund A Acc 1150.00 - 29.00 0.00


Kames Capital ICVC (UK)Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA0800 358 3009 www.kamescapital.comAuthorised Funds

Diversified Monthly Inc B Acc 134.29 - 0.86 5.14

Diversified Monthly Inc B Inc 104.90 - 0.33 5.26

Diversified Growth B Acc £ 1.58 - 0.02 2.96

Ethical Cautious Managed B Acc £ 1.27 - 0.01 2.09

Ethical Cautious Managed B Inc £ 1.13 - 0.00 2.12

Ethical Corporate Bond B Acc £ 1.87 - 0.00 2.99

Ethical Corporate Bond B Inc £ 1.00 - 0.00 2.99

Ethical Equity B Acc £ 2.05 - 0.03 2.22

High Yield Bond B Acc £ 2.70 - 0.00 4.67

High Yield Bond B Inc £ 0.94 - 0.00 4.67

Investment Grade Bond B Acc 174.11 - -0.20 2.00

Investment Grade Bond B Inc £ 1.19 - 0.00 2.50

Sterling Corporate Bond B Acc £ 0.81 - 0.00 2.95

Sterling Corporate Bond B Inc £ 0.32 - 0.00 2.95

Strategic Bond B Acc £ 1.21 - 0.00 2.41

Strategic Bond B Inc £ 1.18 - 0.00 2.41

UK Equity B Acc £ 2.89 - 0.04 2.50

UK Equity Absolute Return B Acc £ 1.11 - 0.00 0.00

UK Equity Income B Acc £ 2.46 - 0.04 4.83

UK Equity Income B Inc £ 1.66 - 0.02 4.98

UK Opportunities B Acc £ 1.86 - 0.03 1.67

UK Smaller Companies B Acc £ 3.43 - 0.03 1.56

Kames Capital Investment Portfolios ICVC (UK)Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA0800 358 3009 www.kamescapital.comAuthorised Funds

Property Income B Acc 133.72 133.72 0.00 4.34

Property Income B Inc 108.04 108.04 -0.38 4.44

Kames Capital VCIC (IRL)1 North Wall Quay, Dublin 1, Ireland +35 3162 24493FCA Recognised

Absolute Return Bond B GBP Acc 1106.86 - 0.10 1.23

Eq Market Neutral B Acc 938.75 - -0.06 0.00

High Yield Global Bond A GBP Inc 494.77 - 0.35 3.70

High Yield Global Bond B GBP Inc 1044.45 - 0.81 4.35

Investment Grade Global Bd A GBP Inc 542.69 - -0.42 2.15

Kames Emerging Market Bond Fund - B Acc USD $ 11.26 - -0.03 0.00

Kames Global Equity Income B GBP Acc 1699.64 - 23.00 0.00

Kames Global Equity Income B GBP Inc 1455.44 - -8.32 3.19

Kames Global Diversified Growth Fund - B Acc EUR € 10.87 - 0.07 0.00

Kames Global Equity Market Neutral Fund - B Acc GBP £ 9.61 - 0.06 0.00

Global Sustainable Equity B Acc GBP £ 14.19 - 0.22 0.00

Global Sustainable Equity C Acc GBP £ 14.29 - 0.22 0.00

Kames Absolute Return Bond Global Fund - B Acc GBP £ 10.25 - 0.00 0.00

Short Dated High Yld Bd B Acc GBP £ 9.99 - -0.04 0.00

Short Dated High Yld Bd C Acc GBP (Hdg) £ 10.03 - -0.05 0.00

Strategic Global Bond A GBP Inc 1080.84 - 0.41 1.94

Strategic Global Bond B GBP Inc 613.37 - 0.26 2.59

Kleinwort Hambros Bank Limited (UK)5TH Floor, 8 St James's Square, London, SW1Y 4JUDealing and enquiries: 033 0024 0785Authorised Inv FundsUnit Trust Manager/ACD - Host Capital

HC Kleinwort Hambros Growth A Acc 203.40 - 1.67 1.36

HC Kleinwort Hambros Growth A Inc 184.85 - 1.53 1.38

HC Kleinwort Hambros Equity Income A Inc 103.80 - -0.75 3.06

HC Kleinwort Hambros Equity Income A Acc 174.62 - -1.27 4.00

HC Kleinwort Hambros Multi Asset Balanced A Acc 156.87 - 0.48 0.81

HC Kleinwort Hambros Multi Asset Balanced A Inc 148.26 - 0.46 0.81

HC Kleinwort Hambros Fixed Income A Acc 127.76 - -0.10 3.44

HC Kleinwort Hambros Fixed Income A Inc 106.84 - -0.08 3.44

Link Asset Services (UK)65 Gresham Street, London, EC2V 7NQOrder Desk and Enquiries: 0345 922 0044Authorised Inv Funds

LF Heartwood Balanced MA B Acc X 143.33 - 0.84 0.63

LF Heartwood Cautious MA B Acc X 139.72 - 0.76 0.74

LF Heartwood Defensive MA B Acc 114.15 - 0.27 0.24

LF Heartwood Growth MA B Acc X 173.03 - 1.22 0.34

LF Heartwood Income MA B Inc X 108.16 - 0.15 3.34

LF Heartwood Income Plus MA B Inc X 113.47 - 0.39 4.15

LF Seneca Diversified Growth A Acc 266.73 - -0.14 2.62

LF Seneca Diversified Growth B Acc 160.92 - -0.07 3.27

LF Seneca Diversified Growth I Acc 97.48 - -0.04 0.00

LF Seneca Diversified Growth N Acc 158.14 - -0.08 3.02

LF Seneca Diversified Income A Inc 88.45 - -0.55 5.21

LF Seneca Diversified Income B Inc 106.61 - -0.66 5.19

LF Seneca Diversified Income I Inc 96.23 - -0.58 0.00

LF Seneca Diversified Income N Inc 104.94 - -0.65 5.20

Investment Adviser - Morant Wright Management Limited

LF Morant Wright Japan A Acc X 402.67 - 5.50 0.08

LF Morant Wright Japan A Inc X 392.95 - 5.36 0.34

LF Morant Wright Japan B Acc X 434.97 - 5.95 0.85

LF Morant Wright Japan B Inc X 399.62 - 5.46 0.87

LF Morant Wright Nippon Yield A Acc X 424.09 - 5.80 2.59

LF Morant Wright Nippon Yield A Inc X 341.28 - 4.67 2.64

LF Morant Wright Nippon Yield B Acc X 446.40 - 6.13 2.58

LF Morant Wright Nippon Yield B Inc X 359.34 - 4.93 2.63

Lloyds Investment Fund Managers Limited (1000)F (JER)PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555Other International FundsLloyds Investment Funds Limited

Euro High Income € 1.5110 - -0.0010 2.93

High Income £ 0.8185xd - -0.0056 4.32

Sterling Bond £ 1.4580 - -0.0050 2.37

Lloyds Money Fund Limited

Sterling Class £ 52.5340 - 0.0000 -0.20

Lloyds Multi Strategy Fund Limited

Conservative Strategy £ 1.2020 - -0.0020 0.43

Growth Strategy £ 1.7480 - -0.0050 0.23

Aggressive Strategy £ 2.3640 - -0.0050 0.00

Global USD Growth Strategy $ 1.5560 - 0.0000 0.00

Dealing Daily


Lothbury Property Trust (UK)155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900Property & Other UK Unit Trusts

Lothbury Property Trust GBP £ 1995.26 2150.30 8.36 3.09

M & G Securities (1200)F (UK)PO Box 9038, Chelmsford, CM99 2XFwww.mandg.co.uk/charities Enq./Dealing: 0800 917 4472Authorised Inv Funds

Charifund Inc 1504.31 - 17.85 5.24

Charifund Acc 24023.88 - 285.08 5.07

M & G Securities Ltd (UK)UK Charity Funds

Charibond 121.93xd - -0.07 2.29

(Accum Units) 3983.49xd - -2.52 2.29

NAACIF 84.27xd - 1.05 4.03

(Accum Units) 8555.94xd - 106.63 3.94

MMIP Investment Management Limited (GSY)RegulatedMulti-Manager Investment Programmes PCC Limited

UK Equity Fd Cl A Series 01 £ 2840.49 2867.16 -138.11 0.00

Diversified Absolute Rtn Fd USD Cl AF2 $ 1580.31 - -57.12 0.00

Diversified Absolute Return Stlg Cell AF2 £ 1546.31 - -59.78 0.00

Global Equity Fund A Lead Series £ 1450.91 1456.75 -79.00 0.00

Marlborough Fd Managers Ltd (1200)F (UK)Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500www.marlboroughfunds.comAuthorised Inv Funds

Balanced 191.73 202.10 0.63 0.38

Bond Income 49.39 52.15 -0.36 3.57

Cautious Inc 87.74 92.35 -0.13 1.67

Defensive A Inc 112.47 112.47 -0.04 0.08

Emerging Markets 307.35 307.35 8.17 1.09

ETF Global Growth A 180.97 180.97 3.19 0.15

ETF Commodity A 84.07 84.07 1.65 0.00

European Multi-Cap 438.20 438.20 4.83 0.76

Extra Income 80.75 85.45 0.76 3.82

Far East Growth A Inc 225.36 225.36 6.38 1.27

Global 236.80 249.27 1.42 0.00

Global Bond Inc 148.93 157.39 0.00 3.22

High Yield Fixed Interest 70.04 74.31 -0.01 4.68

Multi Cap Income A Inc 145.28 145.28 0.96 4.76

Nano-Cap Growth A Acc 161.9627 178.7000 149.3248 0.00

Special Situations A Acc 1552.88 1643.26 -9.05 0.34

UK Multi-Cap Growth A Inc 313.25 331.48 5.02 0.27

UK Micro Cap Growth A 667.55 706.40 -12.98 0.00

US Multi-Cap Income 494.32 494.32 4.88 0.49

MFM - Third Party Funds

Junior Oils 76.17 80.60 -1.94 0.00

Junior Gold C Acc 27.10 27.10 0.32 0.00

MFM Bowland 249.02 269.21 3.53 0.95

MFM Hathaway Inc 134.72 141.07 1.69 1.28

MFM Techinvest Special Situations Acc 183.89 183.89 0.85 0.00

MFM Techinvest Technology Acc 533.41 533.41 9.10 0.00

MFM UK Primary Opportunities A Inc 410.74 410.74 6.15 1.39

Marwyn Asset Management Limited (CYM)Regulated

Marwyn Value Investors £ 418.61 - -3.13 0.00

McInroy & Wood Portfolios Limited (UK)Easter Alderston, Haddington, EH41 3SF 01620 825867Authorised Inv Funds

Balanced Fund Personal Class Units 4851.20 - 44.80 1.34

Income Fund Personal Class Units 2553.50xd - 8.40 2.73

Emerging Markets Fund Personal Class Units 2093.80 - 25.60 1.62

Smaller Companies Fund Personal Class Units 5429.80 - 69.90 0.95

Emerging Markets Managed Accounts PLC (IRL)[email protected], +44(0)20 8123 8369, www.milltrust.comRegulated

Milltrust ASEAN A $ 102.37 - 0.32 0.00

Milltrust India A $ 155.83 - 1.81 0.00

Milltrust Latin America A $ 103.35 - -0.79 0.00

Milltrust Keywise China Fund $ 127.22 - 0.05 0.00

Milltrust SEDCO MENA Fund (Class A) * $ 99.35 - -0.96 0.00

Milltrust International Managed Investments ICAV (IRL)[email protected], +44(0)20 8123 8369 www.milltrust.comRegulated

MAI - Buy & Lease (Australia) A$ 100.27 - 1.07 0.00

MAI - Buy & Lease (New Zealand)NZ$ 97.23 - -1.69 0.00

British Innovation Fund £ 96.84 - -0.82 0.00

EICM South Asia Hospitality 1 $ 102.20 - 0.22 0.00

Milltrust Global Emerging Markets Fund - Class A $ 79.57 - 0.41 -

Ministry of Justice Common Investment Funds (UK)Property & Other UK Unit Trusts

The Equity Idx Tracker Fd Inc 1680.00 1680.00 19.00 2.79

Distribution Units

Mirabaud Asset Management (LUX)www.mirabaud.com, [email protected] based investment vehicles details available here www.mirabaud-am.comRegulated

Mir. - Glb Strat. Bd I USD $ 108.37 - -0.01 0.00

Mir. - EqPanEuropeSm&Mid £ 136.24 - -1.72 0.00

Mirabaud - UK Equity High Alpha £ 114.97 - -1.40 0.00

Morgan Stanley Investment Funds (LUX)6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61www.morganstanleyinvestmentfunds.comFCA Recognised

US Advantage A F $ 86.51 - 1.51 0.00

Asian Equity A F $ 47.27 - 0.98 0.00

Asian Property A F $ 20.55 - 0.35 0.00

Emerg Europ, Mid-East & Africa Eq A F € 72.50 - -0.97 0.00

Emerging Markets Debt A F $ 81.52 - 0.04 0.00

Emerging Markets Domestic Debt AX F £ 11.36 11.36 0.01 6.25

Emerging Markets Equity A F $ 38.72 38.72 -0.19 0.00

Euro Bond A F € 16.12 16.12 0.01 0.00

Euro Corporate Bond AX F £ 26.76 26.76 -0.06 1.29

Euro Strategic Bond A F € 45.70 45.70 0.08 0.00

European Currencies High Yield Bd A F € 23.82 23.82 0.07 0.00

European Equity Alpha A F € 42.54 - 0.48 0.00

European Property A F € 33.37 33.37 -0.30 0.00

Eurozone Equity Alpha A F € 12.00 12.00 0.15 0.00

Global Bond A F $ 40.61 40.61 0.09 0.00

Global Brands A F $ 133.45 - -0.13 0.00

Global Convertible Bond A F $ 44.29 - -0.04 0.00


Global Property A F $ 29.51 - -0.11 0.00

Indian Equity A F $ 38.88 - 0.12 0.00

Latin American Equity A F $ 51.67 - 1.07 0.00

Short Maturity Euro Bond A F € 20.02 20.02 -0.01 0.00

US Dollar Liquidity A F $ 13.31 - 0.00 0.00

US Growth A F $ 111.64 - 2.38 0.00

US Growth AH F € 71.53 71.53 0.53 0.00

US Growth AX F £ 85.74 85.74 0.87 0.00

US Property A F $ 73.06 - 0.32 0.00

Morgens Waterfall Vintiadis.co IncOther International Funds

Phaeton Intl (BVI) Ltd (Est) $ 459.12 - -25.77 0.00

Natixis International Funds (LUX) I SICAV (LUX)FCA Recognised

ASG Managed Futures Fund I/A (USD) $ 90.48 90.48 0.45 0.00

Harris Global Equity Fund R/A (USD) $ 290.41 290.41 -0.59 0.00

Loomis Sayles Global Growth Equity Fund I/A (USD) $ 133.03 133.03 1.17 0.00

Loomis Sayles U.S. Growth Equity Fund I/A (USD) $ 141.39 141.39 1.64 0.00

Natixis Investment Funds (UK)Authorised Funds

DNCA European Select Equity Fund £ 0.94 - 0.01 0.91

Harris Global Concentrated Equity Fund £ 1.65 - 0.05 1.38

H2O MultiReturns Fund N/A (GBP) £ 1.61 - 0.02 1.22

Loomis Sayles U.S. Equity Leaders N/A (GBP) £ 2.66 - 0.09 0.12

New Capital UCITS Fund PLC (IRL)Leconfield House, Curzon Street, London, W1J 5JBwww.newcapitalfunds.comFCA Recognised

Wealthy Nations Bond Fund - USD Inst Inc. $ 109.89 - 0.05 4.57

Euro Value Credit Fund - EUR Inst Acc € 97.67 - -0.06 0.00

Global Value Credit Fund - USD Ord Acc. $ 181.16 - -0.15 0.00

Asia Pacific Equity Income Fund - USD Ord Inc. $ 95.49 - -0.36 2.98

China Equity Fund - USD Ord Acc. $ 144.26 - -0.04 0.00

Dynamic European Equity Fund - EUR Ord Inc. € 173.39 - 0.20 3.02

Global Equity Conviction Fund - USD Ord Acc. $ 120.86 - 0.75 0.00

Swiss Select Equity Fund - CHF Ord Acc.SFr 141.84 - -1.34 0.00

US Growth Fund - USD Ord Acc. $ 268.79 - 2.40 0.00

US Small Cap Growth Fund - USD Inst Acc $ 132.45 - 0.66 0.00

Strategic Portfolio UCITS Fund - USD Inst Acc. $ 116.32 - 0.61 0.00

All Weather Fund - EUR Inst Acc € 96.11 - -0.45 0.00

Dynamic UK Equity Fund - GBP Inst Acc. £ 106.46 - -0.66 0.00

Global Alpha Fund - USD Ord Inc $ 103.69 - 0.27 0.93

Northwest Investment Management (HK) Ltd11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9331 9220Other International Funds

Northwest China Opps Class T $ $ 2683.83 - -82.37 0.00

Northwest Feilong Class T $ $ 1661.87 - -37.77 0.00

Northwest Fund Class T $ $ 2444.08 - -58.05 0.00

Northwest Warrant Class A $ $ 1969.35 - -444.40 0.00

Oasis Crescent Management Company LtdOther International Funds

Oasis Crescent Equity Fund R 10.14 - 0.05 0.20

Oasis Global Mgmt Co (Ireland) Ltd (IRL)RegulatedOasis Crescent Global Investment Fund (Ireland) plc

Oasis Crescent Global Short Term Income Fund I - Class A Dist $ 0.98 - 0.00 -

Oasis Crescent Global Equity Fund $ 30.33 - 0.06 0.88

Oasis Crescent Variable Balanced Fund £ 9.62 - -0.07 0.15

OasisCresGl Income Class A $ 10.36 - 0.00 2.93

OasisCresGl LowBal D ($) Dist $ 12.00 - 0.02 0.26

OasisCresGl Med Eq Bal A ($) Dist $ 12.73 - 0.01 0.47

Oasis Crescent Gbl Property Eqty $ 8.86 - -0.01 1.82

Odey Asset Management LLP (UK)65 Gresham Street, London, EC2V 7NQOrder Desk and Enquiries: 0345 300 2106Authorised Inv FundsAuthorised Corporate Director - Link Fund Solutions

LF Odey Continental European GBP R Acc 1039.43 - 3.42 0.59

LF Odey Opus GBP R Inc 4404.11 - 13.62 0.00

LF Odey Absolute Return GBP R 299.67 - -0.96 0.00

LF Odey Portfolio Fund GBP R Inc 152.50 - 0.70 0.00

Odey Asset Management LLP (CYM)Regulated

OEI Mac Inc GBP A £ 208.00 - -3.97 0.00

OEI Mac Inc GBP B £ 126.84 - -3.94 0.00

OEI MAC Inc USD $ 1115.84 - -21.28 0.00

Odey European Inc EUR € 481.69 - -9.24 0.00

Odey European Inc GBP A £ 194.13 - -3.59 0.00

Odey European Inc GBP B £ 110.06 - -2.03 0.00

Odey European Inc USD $ 234.08 - -4.31 0.00

Odey Asset Management LLP (IRL)FCA Recognised

Odey Pan European EUR R € 319.75 - -2.35 0.00

Odey Allegra International EUR O € 179.40 - -1.70 0.00

Odey Allegra Developed Markets USD I $ 157.10 - -0.25 0.00

Odey European Focus Fund € 19.95 - -0.01 0.00

Odey Odyssey USD I $ 102.68 - -0.13 0.00

Odey Swan Fund EUR I € 55.86 - -0.18 0.00

Odey Absolute Return Focus Fund $ 102.22 - 2.84 0.00

Odey Wealth Management (CI) Ltd (IRL)www.odey.com/pricesFCA Recognised

Odey Opportunity EUR I € 236.21 - 0.44 0.00

Omnia Fund LtdOther International Funds

Estimated NAV $ 827.11 - -137.04 0.00

DECEMBER 4 2018 Section:Stats Time: 3/12/2018 - 19:07 User: keith.allen Page Name: MANAGED FUNDS 1, Part,Page,Edition: LON, 25, 1


MANAGED FUNDS SERVICE


Optima Fund ManagementOther International Funds

Cuttyhunk Fund II Limited $ 1678.32 - -85.70 0.00

JENOP Global Healthcare Fund Ltd $ 16.60 - -1.43 0.00

OPTIKA Fund Limited - Cl A $ 148.58 - -8.76 0.00

Optima Fd NAV $ 92.66 - 0.00 0.00

Optima Discretionary Macro Fund Limited $ 84.46 - -0.87 0.00

The Dorset Energy Fd Ltd NAV $ 18.82 - 0.00 0.00

Platinum Fd Ltd $ 95.49 - 0.00 0.00

Platinum Fd Ltd EUR € 17.15 - 0.00 0.00

Platinum Japan Fd Ltd $ 59.23 - 0.00 0.00

Optima Partners Global Fd $ 15.50 - 0.00 0.00

Optima Partners Focus Fund A $ 16.22 - -0.20 0.00

Optima STAR Fund (hedged) $ 96.18 - -0.34 0.00

Optima STAR Long Fund $ 130.38 - 0.19 0.00

Oryx International Growth Fund LtdOther International Funds

NAV (Fully Diluted) £ 9.10 - -0.52 0.00

Orbis Investments (U.K.) Limited (GBR)28 Dorset Square, London, NW1 6QGwww.orbis.com 0800 358 2030Regulated

Orbis OEIC Global Balanced Standard £ 14.59 - 0.04 0.00

Orbis OEIC Global Equity Standard £ 16.16 - 0.09 0.00

Orbis OEIC UK Equity Standard £ 8.25 - -0.10 2.61

Pictet Asset Management (Europe) SA (LUX)15, Avenue J.F. Kennedy L-1855 LuxembourgTel: 0041 58 323 3000FCA Recognised

Pictet-Absl Rtn Fix Inc-HI EUR € 104.90 - 0.07 0.00

Pictet-Asian Equities Ex Japan-I USD F $ 265.70 - 0.35 0.00

Pictet-Asian Local Currency Debt-I USD F $ 165.04 - 1.88 0.00

Pictet-Biotech-I USD F $ 772.89 - 17.03 0.00

Pictet-CHF Bonds I CHF SFr 501.73 - -0.29 0.00

Pictet-China Index I USD $ 139.11 - 2.48 0.00

Pictet-Clean Energy-I USD F $ 88.44 - 0.90 0.00

Pictet-Digital-I USD F $ 388.66 - 3.67 0.00

Pictet-Em Lcl Ccy Dbt-I USD F $ 166.60 - -0.04 0.00

Pictet-Emerging Europe-I EUR F € 346.50 - -0.56 0.00

Pictet-Emerging Markets-I USD F $ 575.42 - 5.50 0.00

Pictet-Emerging Markets Index-I USD F $ 273.26 - 3.18 0.00

Pictet-Emerging Corporate Bonds I USD $ 121.40 - 0.12 0.00

Pictet-Emerging Markets High Dividend I USD $ 114.97 - 1.47 0.00

Pictet-Emerging Markets Sust Eq I USD $ 102.38 - 0.76 0.00

Pictet-EUR Bonds-I F € 574.43 - 0.04 0.00

Pictet-EUR Corporate Bonds-I F € 207.17 - -0.17 0.00

Pictet-EUR Government Bonds I EUR € 161.64 - -0.02 0.00

Pictet-EUR High Yield-I F € 265.36 - -0.07 0.00

Pictet-EUR Short Mid-Term Bonds-I F € 136.42 - 0.06 0.00

Pictet-EUR Short Term HY I EUR € 125.48 - -0.08 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 101.14 - 0.00 0.00

Pictet-Euroland Index IS EUR € 144.29 - -0.31 0.00

Pictet-Europe Index-I EUR F € 181.74 - 0.02 0.00

Pictet-European Equity Selection-I EUR F € 700.15 - 1.18 0.00

Pictet-European Sust Eq-I EUR F € 260.16 - 0.31 0.00

Pictet-Global Bds Fundamental I USD $ 122.10 - -0.12 0.00

Pictet-Global Bonds-I EUR € 166.90 - -0.27 0.00

Pictet-Global Defensive Equities I USD $ 175.09 - 1.51 0.00

Pictet-Global Emerging Debt-I USD F $ 383.16 - 1.13 0.00

Pictet-Global Env.Opport-I EUR € 192.68 - 0.60 0.00

Pictet-Global Megatrend Selection-I USD F $ 281.67 - 3.82 0.00

Pictet-Global Sust.Credit HI EUR € 146.20 - 0.01 0.00

Pictet-Greater China-I USD F $ 563.84 - -4.00 0.00

Pictet-Health-I USD $ 308.03 - 5.31 0.00

Pictet-SmartCity-I EUR € 171.32 - 0.46 0.00

Pictet-India Index I USD $ 118.16 - 0.65 0.00

Pictet-Indian Equities-I USD F $ 555.08 - 10.20 0.00


Pictet-Japan Index-I JPY F ¥ 18076.72 - 54.06 0.00

Pictet-Japanese Equities Opp-I JPY F ¥ 11302.91 - 19.67 0.00

Pictet-Japanese Equity Selection-I JPY F ¥ 16336.74 - -7.04 0.00

Pictet-LATAM Lc Ccy Dbt-I USD F $ 127.29 - 0.33 0.00

Pictet-Multi Asset Global Opportunities-I EUR € 121.30 - 0.46 0.00

Pictet-Nutrition-I EUR € 222.09 - 1.00 0.00

Pictet-Pacific Ex Japan Index-I USD F $ 407.94 - 0.97 0.00

Pictet-Premium Brands-I EUR F € 172.51 - 0.97 0.00

Pictet-Russia Index I USD $ 74.47 - 1.00 0.00

Pictet-Russian Equities-I USD F $ 72.96 - 1.65 0.00

Pictet-Security-I USD F $ 254.80 - 4.28 0.00

Pictet-Select-Callisto I EUR € 97.95 - -0.92 0.00

Pictet-Small Cap Europe-I EUR F € 1201.47 - 6.34 0.00

Pictet-ST Emerg Local Currency Debt-I USD F $ 100.40 - -0.06 0.00

Pictet-ST.MoneyMkt-I € 138.94 - -0.01 0.00

Pictet-ST.MoneyMkt JPY I USD ¥ 100977.43 - -1.95 0.00

Pictet-ST.MoneyMkt-ICHF SFr 121.23 - 0.00 0.00

Pictet-ST.MoneyMkt-IUSD $ 141.15 - 0.01 0.00

Pictet-Timber-I USD F $ 174.49 - 2.77 0.00

Pictet TR-Agora I EUR € 125.97 - -0.31 0.00

Pictet TR-Corto Europe I EUR € 142.84 - 0.15 0.00

Pictet TR-Divers Alpha I EUR € 107.48 - -0.03 0.00

Pictet TR-Kosmos I EUR € 107.99 - -0.03 0.00

Pictet TR-Mandarin I USD $ 158.16 - 0.35 0.00

Pictet-US Equity Selection-I USD $ 243.00 - 3.65 0.00

Pictet-US High Yield-I USD F $ 162.72 - 0.53 0.00

Pictet-USA Index-I USD F $ 251.05 - 5.65 0.00

Pictet-USD Government Bonds-I F $ 641.63 - 0.29 0.00

Pictet-USD Short Mid-Term Bonds-I F $ 132.68 - 0.15 0.00

Pictet-USD Sov.ST.Mon.Mkt-I $ 106.32 - 0.00 0.00

Pictet-Water-I EUR F € 336.38 - -0.90 0.00

Platinum Capital Management LtdOther International Funds

Platinum All Star Fund - A $ 127.76 - - -

Platinum Global Dividend Fund - A $ 41.99 - - -

Platinum Global Growth UCITS Fund $ 10.21 - 0.11 0.00

Polar Capital Funds Plc (IRL)Regulated

Automation & Artificial Intelligence CL I USD Acc $ 10.03 10.03 0.02 0.00

Asian Financials I USD $ 355.85 355.85 6.16 0.00

Biotechnology I USD $ 23.27 23.27 0.32 0.00

European Income Acc EUR € 12.24 12.24 0.04 0.00

European Ex UK Inc EUR Acc € 11.36 11.36 0.04 0.00

Financial Opps I USD $ 12.82 - 0.03 2.14

GEM Income I USD $ 11.57 - -0.11 0.00

Global Convertible I USD $ 12.73 12.73 0.01 0.00

Global Insurance I GBP £ 6.50 - 0.04 0.33

Global Technology I USD $ 43.20 - 0.41 0.00

Healthcare Blue Chip Fund I USD Acc $ 13.26 13.26 0.08 0.00

Healthcare Opps I USD $ 49.70 - 0.45 0.00

Income Opportunities B2 I GBP Acc £ 2.20 2.20 0.00 0.00

Japan Alpha I JPY ¥ 254.89 254.89 2.56 0.00

Japan I JPY ¥ 2420.51 - 37.62 0.00

North American I USD $ 23.35 23.35 0.13 0.00

UK Absolute Equity I GBP £ 19.44 19.44 0.28 0.00

UK Val Opp I GBP Acc £ 10.81 10.81 0.01 0.00

Polar Capital LLP (CYM)Regulated

European Forager A EUR € 180.71 - -9.90 0.00

Private Fund Mgrs (Guernsey) Ltd (GSY)Regulated

Monument Growth 27/11/2018 £ 483.23 488.62 2.09 3.36

Prusik Investment Management LLP (IRL)Enquiries - 0207 493 1331Regulated

Prusik Asian Equity Income B Dist $ 188.83 - 2.65 4.13

Prusik Asia A $ 248.59 - 6.56 0.00

Prusik Asian Smaller Cos A $ 143.09 - 2.18 0.00


Purisima Investment Fds (UK) (1200)F (UK)65 Gresham Street, London, EC2V 7NQOrder Desk and Enquiries: 0345 922 0044Authorised Inv FundsAuthorised Corporate Director - Link Fund Solutions

Global Total Fd PCG A 253.40 - 3.96 0.52

Global Total Fd PCG B 250.97 - 3.91 0.29

Global Total Fd PCG INT 247.57 - 3.85 0.06

Purisima Investment Fds (CI) Ltd (JER)Regulated

PCG B X 208.35 - -0.39 0.00

PCG C X 204.37 - -0.39 0.00

Ram Active Investments SAwww.ram-ai.comOther International Funds

RAM Systematic Emerg Markets Core Eq $ 94.97 - -0.52 -

RAM Systematic Emerg Markets Eq $ 165.37 - -0.64 -

RAM Systematic European Eq € 413.14 - -1.36 -

RAM Systematic Global Shareholder Yield Eq $ 123.22 - -0.23 0.00

RAM Systematic Long/Short Emerg Markets Eq $ 117.94 - -0.33 -

RAM Systematic Long/Short European Eq € 146.70 - 0.68 -

RAM Systematic North American Eq $ 290.80 - 0.98 -

RAM Tactical Convertibles Europe € 141.25 - -0.19 -

RAM Tactical Global Bond Total Return € 140.89 - 0.01 -

RAM Tactical II Asia Bond Total Return $ 135.76 - 0.11 -

Rathbone Unit Trust Mgmt (1200)F (UK)PO Box 9948, Chelmsford, CM99 2AGOrder Desk: 0845 300 2101, Enquiries: 0207 399 0399Authorised Inv Funds

Ethical Bond Inc 89.86 91.77 -0.10 4.24

Ethical Bond Acc 193.36 196.87 -0.22 4.13

Global Opportunities Acc 213.32 219.39 2.19 0.00

Income Inc 855.32 883.94 7.45 4.24

Income Acc 1494.60 1541.35 12.99 4.10

Multi Asset Enhanced Growth Acc 160.00 - 1.81 0.37

Multi Asset Strategic Growth inc 170.44 - 1.05 1.58

Multi Asset Strategic Growth acc 188.96 - 1.16 1.57

Multi Asset Total Return inc 128.15 - 0.28 1.45

Multi Asset Total Return acc 147.70 - 0.32 1.44

Rathbone UK Opportunities Inc 430.19 446.16 3.67 3.05

Rathbone UK Opportunities Acc 559.22 578.93 4.77 2.93

Strategic Bond I-Class Acc 141.64 142.26 -0.03 3.12

Strategic Bond I-Class Inc 112.71 113.33 -0.02 3.18

Robeco Asset Management (LUX)Weena 850, 3014 DA Rotterdam, The Netherlandswww.robeco.com/contactFCA Recognised

Asia-Pacific Equities (EUR) € 152.34 - 0.89 0.00

BP US Premium Equities (EUR) € 217.29 - 4.28 0.00

BP US Premium Equities (USD) $ 258.62 - 5.06 0.00

Chinese Equities (EUR) € 85.88 - 1.00 0.00

Em Stars Equities (EUR) € 203.36 - 2.28 0.00

Emerging Markets Equities (EUR) € 177.31 - 2.18 0.00

Glob.Consumer Trends Equities (EUR) € 207.70 - 3.89 0.00

High Yield Bonds (EUR) € 140.50 - 0.23 0.00

New World Financials (EUR) € 66.55 - 0.95 0.00

RLUM Ltd (UK)5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777Authorised Inv Funds

Royal London Sustainable Diversified A Inc £ 1.90 - 0.01 1.09

Royal London Sustainable World A Inc 239.60 - 3.40 0.23

Royal London Corporate Bond Mth Income 88.01 89.35 -0.43 3.93

Royal London European Growth Trust 150.30 152.60 1.90 0.11

Royal London Sustainable Leaders A Inc 571.50 - 3.70 1.20

Royal London UK Growth Trust 540.50 548.70 7.90 1.67

Royal London UK Income With Growth Trust 214.10 217.30 4.40 5.18

Royal London US Growth Trust 231.10 234.70 4.80 0.00

Additional Funds AvailablePlease see www.royallondon.com for details


Ruffer LLP (1000)F (UK)65 Gresham Street, London, EC2V 7NQOrder Desk and Enquiries: 0345 601 9610Authorised Inv FundsAuthorised Corporate Director - Link Fund Solutions

LF Ruffer European C Acc 558.36 - 3.86 0.21

LF Ruffer European C Inc 102.72 - 0.71 0.30

LF Ruffer European O Acc 547.86 - 3.78 0.00

LF Ruffer Equity & General C Acc 439.68 - 2.49 0.10

LF Ruffer Equity & General C Inc 404.96 - 2.30 0.10

LF Ruffer Equity & General O Acc 431.45 - 2.44 0.00

LF Ruffer Equity & General O Inc 400.31 - 2.27 0.00

LF Ruffer Gold C Acc 127.29 - 1.81 0.00

LF Ruffer Gold C Inc 77.04 - 1.10 0.00

LF Ruffer Gold O Acc 124.86 - 1.78 0.00

LF Ruffer Japanese C Inc 118.52 - 1.16 0.34

LF Ruffer Japanese C Acc 253.04 - 2.48 0.33

LF Ruffer Japanese O Acc X 247.97 - 2.43 0.04

LF Ruffer Pacific & Emerging Markets C Acc 348.35 - 2.99 0.94

LF Ruffer Pacific & Emerging Markets C Inc 96.99 - 0.83 0.98

LF Ruffer Pacific & Emerging Markets O Acc 341.49 - 2.92 0.60

LF Ruffer Total Return C Acc 423.67 - 1.67 1.45

LF Ruffer Total Return C Inc 281.14 - 1.12 1.46

LF Ruffer Total Return O Acc 415.70 - 1.64 1.45

LF Ruffer Total Return O Inc 275.69 - 1.09 1.47

S W Mitchell Capital LLP (IRL)Regulated

SWMC European Fund B EUR € 15335.23 - -182.69 0.00

SWMC Small Cap European Fund B EUR € 13454.44 - 1.32 0.00

RobecoSAM (LUX)Tel. +41 44 653 10 10 http://www.robecosam.com/Regulated

RobecoSAM Sm.Energy/A £ 16.34 - 0.03 1.72

RobecoSAM Sm.Energy/N € 14.92 - 0.08 0.00

RobecoSAM Sm.Materials/A £ 191.64 - 0.28 1.56

RobecoSAM Sm.Materials/N € 198.37 - 1.12 0.00

RobecoSAM Sm.Materials/Na € 131.32 - 0.75 1.56

RobecoSAM Gl.Small Cap Eq/A £ 109.84 - 0.38 1.46

RobecoSAM Gl.Small Cap Eq/N € 195.72 - 1.49 0.00

RobecoSAM Sustainable Gl.Eq/B € 222.88 - 2.29 0.00

RobecoSAM Sustainable Gl.Eq/N € 196.37 - 2.02 0.00

RobecoSAM S.HealthyLiv/B € 203.39 - 1.69 0.00

RobecoSAM S.HealthyLiv/N € 193.78 - 1.61 0.00

RobecoSAM S.HealthyLiv/Na £ 144.36 - 0.60 1.35

RobecoSAM S.Water/A £ 236.33 - 0.79 1.47

RobecoSAM S.Water/N € 204.82 - 1.55 0.00

Rubrics Global UCITS Funds Plc (IRL)www.rubricsam.comRegulated

Rubrics Emerging Markets Fixed Income UCITS Fund $ 133.84 - -0.27 0.00

Rubrics Global Credit UCITS Fund $ 15.94 - -0.01 0.00

Rubrics Global Fixed Income UCITS Fund $ 163.97 - 0.04 0.00

Q Rubrics India Fixed Income UCITS Fund $ 10.65 - 0.03 0.00

Rubrics India Fixed Income UCITS Fund $ 92.00 - 0.23 0.00

Scottish Friendly Asset Managers Ltd (UK)Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000Authorised Inv Funds

Managed Growth ♦ 266.60 - 3.90 0.00

UK Growth ♦ 290.70 - 3.50 0.00

SlaterInvestmentsSlater Investments Ltd (UK)www.slaterinvestments.com; Tel: 0207 220 9460FCA Recognised

Slater Growth 476.64 504.05 -7.41 0.00

Slater Income A Inc 142.73 142.73 0.86 0.00

Slater Recovery 227.50 241.38 1.34 0.00


Slater Artorius 193.02 193.02 3.64 0.25

Standard Life Wealth (JER)PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130FCA RecognisedStandard Life Offshore Strategy Fund Limited

Bridge Fund £ 1.8257 - 0.0208 2.07

Global Equity Fund £ 2.3904 - 0.0344 1.19

Global Fixed Interest Fund £ 0.9266 - 0.0007 4.88

Income Fund £ 0.5634 - 0.0065 3.26

Sterling Fixed Interest Fund £ 0.8280 - -0.0021 3.45

UK Equity Fund £ 2.1238 - 0.0343 3.32

Stenham Asset Management Incwww.stenhamassetmanagement.comOther International Funds

Stenham Credit Opportunities A Class USD $ 117.94 - -0.38 0.00

Stenham Equity UCITS USD $ 162.11 - 2.67 0.00

Stenham Growth USD $ 214.48 - -13.77 -

Stenham Healthcare USD $ 211.76 - -11.37 0.00

Stenham Managed Fund USD $ 119.35 - -4.60 0.00

Stenham Quadrant USD A $ 435.40 - -5.43 -

Stenham Trading Inc USD $ 125.23 - -1.39 -

Stenham Universal USD $ 448.50 - -15.70 -

Stenham Universal II USD $ 163.74 - -5.81 0.00

Superfund Asset Management GmbHwww.superfund.com, +43 (1) 247 00Regulated

Superfund Green EUR SICAV € 752.98 - 0.24 0.00

Superfund Red EUR SICAV € 743.23 - 0.21 0.00

Other International Funds

Superfund Green Gold SICAV $ 764.23 - -1.16 0.00

Thesis Unit Trust Management Limited (UK)Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UPAuthorised Funds

TM New Court Fund A 2011 Inc £ 14.98 - 0.05 0.00

TM New Court Fund - A 2014 Acc £ 15.08 - 0.05 0.00

TM New Court Equity Growth Fund - Inc £ 15.74 - 0.06 0.06

Toscafund Asset Management LLP (UK)www.toscafund.comAuthorised Funds

Aptus Global Financials B Acc £ 3.81 - -0.01 5.36

Aptus Global Financials B Inc £ 2.90 - -0.01 5.57

Toscafund Asset Management LLPwww.toscafund.comOther International Funds

Tosca A USD $ 317.24 - -30.98 -

Tosca Mid Cap GBP £ 294.53 - -15.63 -

Tosca Opportunity B USD $ 431.90 - -28.05 -

Pegasus Fund Ltd A-1 GBP £ 68.37 - -1.87 0.00

TreeTop Asset Management S.A. (LUX)RegulatedTreeTop Convertible Sicav

International AH € 250.22 - 1.22 0.00

International BH $ 341.58 - 1.76 0.00

International CH £ 102.69 - 0.50 3.91

International DH € 212.83 - 1.02 3.78

TreeTop Global Sicav

Global Opp.AH € 129.83 - 0.27 0.00

Global Opp.B $ 134.86 - 0.12 0.00

Global Opp.C £ 193.10 - 0.47 0.00

Sequoia Equity AH € 124.13 - 1.38 0.00

Sequoia Equity B $ 134.56 - 1.29 0.00

Sequoia Equity C £ 163.62 - 1.82 4.02


Troy Asset Mgt (1200) (UK)65 Gresham Street, London, EC2V 7NQOrder Desk and Enquiries: 0345 608 0950Authorised Inv FundsAuthorised Corporate Director - Link Fund Solutions

Trojan Investment Funds

Spectrum Fund O Acc 220.55 - 0.41 0.63

Spectrum Fund O Inc 211.46 - 0.39 0.63

Trojan Ethical Income O Acc 122.29 - 0.73 2.96

Trojan Ethical Income O Inc 113.22 - 0.68 3.10

Trojan Fund O Acc 304.48 - 0.88 0.45

Trojan Fund O Inc 249.50 - 0.72 0.45

Trojan Global Equity O Acc 332.76 - 3.76 0.63

Trojan Global Equity O Inc 277.03 - 3.13 0.64

Trojan Global Income O Acc 116.78 - 1.24 2.89

Trojan Global Income O Inc 110.06 - 1.18 2.94

Trojan Income O Acc 322.08 - 2.65 4.06

Trojan Income O Inc 181.37 - 1.50 4.20

UBS Asset Management (UK)5 Broadgate, London, EC2M 2QSClient Services 0800 358 3012, Client Dealing 0800 358 3012www.ubs.com/retailfundsAuthorised Inv FundsOEIC

UBS Global Emerging Markets Equity C Acc £ 0.78 - 0.02 1.22

UBS Global Optimal C Acc £ 1.03 - 0.02 0.88

UBS UK Opportunities C Acc £ 0.84 - 0.01 3.33

UBS US Equity C Acc £ 1.26 - 0.02 0.22

UBS S&P 500 Index C Acc £ 0.90 - 0.01 1.39

UBS Targeted Return C Acc £ 13.63 - 0.02 1.58

UBS Sterling Corporate Bond Indexed C Acc £ 0.60 - 0.00 2.86

UBS Multi Asset Income C Inc Net £ 0.49 - 0.00 3.94

UBS UK Equity Income C Inc Net £ 0.65 - 0.01 4.99

UBS Corporate Bond UK Plus C Inc Net £ 0.53 - 0.00 4.16

UBS Global Allocation (UK) C Acc £ 0.79 - 0.00 2.03

UBS Global Enhanced Equity Income C Inc £ 0.42 - 0.00 8.28

UBS US Growth C Acc £ 1.44 - 0.04 0.00

UBS Emerging Markets Equity Income C Inc £ 0.49 - 0.01 4.13

UBS FTSE RAFI Dev 1000 Index J Acc £ 147.18 - 0.88 2.29

UBS MSCI World Min Vol Index J Acc £ 157.52 - 0.18 2.06

Unicapital Investments (LUX)Regulated

Investments IV - European Private Eq. € 104.05 - -22.67 0.00

Investments IV - Global Private Eq. € 164.16 - -6.67 0.00

Unicorn Asset Management Ltd (UK)PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287Authorised Inv Funds

UK Growth A Inc 550.29 - 2.14 0.69

Mastertrust A Inc X F 500.77 - 6.35 0.00

UK Growth B Inc 552.00 - 2.18 1.53

Mastertrust B Inc X F 449.35 - 5.73 0.66

Outstanding British Cos A Acc X F 291.16 - 2.80 0.11

Outstanding British Cos B Acc X F 310.76 - 3.01 0.90

UK Smaller Cos A Inc X F 514.14 - 2.98 1.39

UK Smaller Cos B Inc X F 502.51 - 2.94 2.23

UK Income A Acc X F 284.92 - 1.72 4.42

UK Income A Inc X F 225.34 - 1.37 4.54

UK Income B Acc X F 309.50 - 1.90 4.40

UK Income B Inc X F 244.90 - 1.50 4.52

Value Partners Hong Kong Limited (IRL)www.valuepartners-group.com, [email protected]

Value Partners Asia ex-Japan Equity Fund USD V Acc Unhedged $ 9.44 - -0.02 -

Value Partners Classic Equity Fund USD Z Unhedged $ 13.42 - 0.02 0.00

Value Partners Classic Equity Fund CHF HedgedSFr 12.74 - 0.02 0.00

Value Partners Classic Equity Fund EUR Hedged € 13.00 - 0.03 0.00

Value Partners Classic Equity Fund GBP Hedged £ 13.61 - 0.03 0.00

Value Partners Classic Equity Fund GBP Unhedged £ 17.14 - 0.08 0.00

Value Partners Classic Equity USD Unhedged $ 16.39 - 0.03 0.00

Value Partners Global Emerging Market Bond Fund USD A Acc Unhedged $ 9.92 - -0.01 0.00

Value Partners Global Emerging Market Equity Fund USD V Unhedged $ 9.66 - -0.05 0.00

Value Partners Greater China Equity Fund USD A (Acc) Unhedged $ 10.43 - 0.03 0.00

Value Partners Health Care Fund HKD Class A UnhedgedHK$ 11.66 - -0.02 0.00

Value Partners Health Care Fund USD Class A Unhedged $ 11.89 - -0.01 0.00


WA Fixed Income Fund Plc (IRL)Regulated

European Multi-Sector € 113.82 - 0.08 3.59

Yapi Kredi Asset Management (TUR)www.yapikrediportfoy.com.tr Tel: + 90 (212) 385 48 48Other International Funds

Eurobond Fund TRY 0.126379 - -0.000196 -

Koc Affiliate and Equity Fund TRY 0.811238 - 0.684663 -

DPM Bonds and Bills Fund (FX) $ 0.980111 - 0.853536 0.00

Yuki International Limited (IRL)Tel +44-20-7269-0207 www.yukifunds.comRegulatedYuki Mizuho Umbrella Fund

Yuki Mizuho Japan Dynamic Growth ¥ 8494.00 - 135.00 0.00

Yuki Japan Low Price ¥ 42301.00 - 490.00 0.00

Yuki Japan Value Select ¥ 16857.00 - 320.00 0.00

Yuki Asia Umbrella Fund

Yuki Japan Rebounding Growth Fund JPY Class ¥ 32091.00 - 671.00 0.00

Yuki Japan Rebounding Growth Fund USD Hedged Class $ 1274.69 - 26.62 0.00

Zadig Gestion (Memnon Fund) (LUX)FCA Recognised

Memnon European Fund - Class U2 GBP £ 152.84 - -1.45 0.00

Money MarketTrusts andBank Accounts

Gross NetGrossAER Int Cr

CCLA Investment Management LtdSenator House 85 Queen Victoria Street, London EC4V 4ETCBF Church of England Deposit Fund 0.65 - 0.65 Qtr

CCLA Fund Managers LtdSenator House 85 Queen Victoria Street, London EC4V 4ETCOIF Charities Deposit Fund 0.55 - 0.55 Qtr


Data Provided by

www.morningstar.co.ukData as shown is for information purposes only. Nooffer is made by Morningstar or this publication.

Guide to Data

The fund prices quoted on these pages are supplied by the operator of the relevant fund. Details of funds published on these pages, including prices, are for the purpose of information only and should only be used as a guide. The Financial Times Limited makes no representation as to their accuracy or completeness and they should not be relied upon when making an investment decision. The sale of interests in the funds listed on these pages may, in certain jurisdictions, be restricted by law and the funds will not necessarily be available to persons in all jurisdictions in which the publication circulates. Persons in any doubt should take appropriate professional advice. Data collated by Morningstar. For other queries contact [email protected] +44 (0)207 873 4211. The fund prices published in this edition along with additional information are also available on the Financial Times website, www.ft.com/funds. The funds published on these pages are grouped together by fund management company. Prices are in pence unless otherwise indicated. The change, if shown, is the change on the previously quoted figure (not all funds update prices daily). Those designated $ with no prefix refer to US dollars. Yield percentage figures (in Tuesday to Saturday papers) allow for buying expenses. Prices of certain older insurance linked plans might be subject to capital gains tax on sales. Guide to pricing of Authorised Investment Funds: (compiled with the assistance of the IMA. The Investment Management Association, 65 Kingsway, London WC2B 6TD. Tel: +44 (0)20 7831 0898.) OEIC: Open-Ended Investment Company. Similar to a unit trust but using a company rather than a trust structure. Different share classes are issued to reflect a different currency, charging structure or type of holder. Selling price: Also called bid price. The price at which units in a unit trust are sold by investors. Buying price: Also called offer price. The price at which units in a unit trust are bought by investors. Includes manager’s initial charge. Single price: Based on a mid-market valuation of the underlying investments. The buying and selling price for shares of an OEIC and units of a single priced unit trust are the same. Treatment of manager’s periodic capital charge: The letter C denotes that the trust deducts all or part of the manager’s/operator’s periodic charge from capital, contact the manager/operator for full details of the effect of this course of action. Exit Charges: The letter E denotes that an exit charge may be made when you sell units, contact the manager/operator for full details. Time: Some funds give information about the timing of price quotes. The time shown alongside the fund manager’s/operator’s name is the valuation point for their unit trusts/OEICs, unless another time is indicated by the symbol alongside the individual unit trust/OEIC name. The symbols are as follows: ✠ 0001 to 1100 hours; ♦ 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to midnight. Daily dealing prices are set on the basis of the valuation point, a short period of time may elapse before prices become available. Historic pricing: The letter H denotes that the managers/operators will normally deal on the price set at the most recent valuation. The prices shown are the latest available before publication and may not be the current dealing levels because of an intervening portfolio revaluation or a switch to a forward pricing basis. The managers/operators must deal at a forward price on request, and may move to forward pricing at any time. Forward pricing: The letter F denotes that that managers/operators deal at the price to be set at the next valuation. Investors can be given no definite price in advance of the purchase or sale being carried out. The prices appearing in the newspaper are the most recent provided by the managers/operators. Scheme particulars, prospectus, key features and reports: The most recent particulars and documents may be obtained free of charge from fund managers/operators. * Indicates funds which do not price on Fridays. Charges for this advertising service are based on the number of lines published and the classification of the fund. Please contact [email protected] or call +44 (0)20 7873 3132 for further information.

Morningstar Fund RatingsUS Fund Large Value

Name ISIN Currency NAV Total Ret1Yr

Total Ret3Yr

Total Ret5Yr

12 MonthYield

OngoingCharge

Fund Size MorningstarRating TM

MorningstarSustainability Rating TM

MorningstarAnalyst Rating TM

MorningstarAnalyst Rating Date/Time*

Morningstar Analyst

Dodge & Cox Stock US2562191062 US Dollar 207.39 6.57 13.00 10.10 1.23 - 70,025,011,793.00 QQQQQ Œ 28/06/2018 08:08 Andrew Daniels, CFA, CMA

Dreyfus Equity Income I US2619806357 US Dollar 19.77 7.73 13.00 10.13 2.36 - 906,164,218.00 QQQQQ Neutral 20/06/2018 06:28 Kevin McDevitt, CFA

Columbia Dividend Income Inst US19765N2457 US Dollar 22.69 5.79 12.00 10.63 1.81 - 12,319,519,676.00 QQQQQ „ 04/09/2018 08:44 Greg Carlson

Vanguard Value Index Inv US9229084051 US Dollar 42.41 5.73 12.00 10.19 2.28 - 71,750,355,922.00 QQQQQ „ 20/05/2018 03:13 Alex Bryan, CFA

AMG Yacktman I US00170K5882 US Dollar 24.67 9.87 12.00 8.66 1.27 - 7,740,251,526.00 QQQQQ Œ 08/10/2018 11:00 Kevin McDevitt, CFA

Principal Equity Income A US74254V8697 US Dollar 32.03 4.51 12.00 9.60 1.69 - 7,222,393,008.00 QQQQ ´ 07/09/2018 03:18 Tony Thomas

American Funds American Mutual A US0276811058 US Dollar 42.36 6.39 12.00 9.58 1.87 - 52,245,997,796.00 QQQQ Œ 30/07/2018 06:32 Alec Lucas, Ph.D.

Hartford Dividend and Growth Y US4166458285 US Dollar 27.09 5.14 11.00 9.97 1.56 - 8,462,826,594.00 QQQQ ´ 04/04/2018 03:52 Alec Lucas, Ph.D.

American Century Equity Income Inv US0250761006 US Dollar 9.06 3.84 11.00 9.82 1.73 - 11,508,246,012.00 QQQQ „ 27/08/2018 07:47 Greg Carlson

Vanguard Equity-Income Inv US9219211029 US Dollar 37.63 4.52 11.00 9.93 2.48 - 31,949,545,145.00 QQQQ „ 16/05/2018 08:02 Alec Lucas, Ph.D.

MSCI Benchmark 6.27 12.16 11.12 Date/Time of ratings is Universal Co-ordinated Time (UTC). Sorted by Annualised 3yr Total Return of NAV (highest to lowest).

Morningstar Category Benchmark 2.47 9.54 7.95 For important information about Morningstar Analyst Rating please go to: http://global.morningstar.com/managerdisclosures

DECEMBER 4 2018 Section:Stats Time: 3/12/2018 - 19:07 User: keith.allen Page Name: MANAGED FUNDS 2, Part,Page,Edition: LON, 26, 1


MARKETS & INVESTING

COLBY SMITH

President Andrés Manuel López Obra-dor’s government in Mexico hasoffered to buy back a portion of $6bn ofbonds sold to finance a new airportwhich is now set for cancellation, in thefirst big test of how the new leftwingadministration will deal with interna-tional investors.

The government’s plan, announced justdays after Mr López Obrador’s inaugu-ration, would see the airport trust,known as Mexcat, purchase $1.8bn ofthebondsbetween90centsandpar.

Inexchange,bondholderswouldneedto agree to a loosening of their rights ontheremainingdebt.

Investors gave an initial welcome tothe proposal with a $3bn bond due in2047 jumping to as high as 86 cents onthe dollar, having been trading at just 75centsbeforetheannouncement.

Owners of the bonds, which includeasset managers Schroders, T Rowe Priceand Lombard Odier, must consent to“certain modifications to the issue cove-nants”, according to Mexcat, the body

responsible for financing the airport.After sweeping to power on a pledge

to end free market policies that heclaims have been a “calamity” for Mex-ico, Mr López Obrador, who is com-monly known as Amlo, last month helda controversial referendum on thefuture of the $13bn Norman Foster-designed airport. He vowed to scrap theproject after almost 70 per cent of thevotescast favoureddoingso.

Passenger fees to both the existingand new airports, which is only partiallyconstructed, serve as collateral for thebonds,asdoconcessionstooperatebothlocations.

Under the plan, investors would onlybe giving up the security on the new air-port, not the existing revenues that arealready being paid out. The airport trustalso included a provision to “release thesecurity interest over the passengercharges and other assets relating to the[new]airport”.

In doing so, Mr López Obrador is nolonger financially tethered to buildingthenewairport.

Michael Leithead, a portfolio man-ager at EFG Asset Management, said theproposal was, on balance, “a positivedevelopment”, adding: “As a bond-holder you invest to be paid back overtime and when considered against thisalternative, the current offer lookspotentiallyattractive.”

Bondholders have until December 17to accept the tender offers for the $1.8bnof bonds and changes to the rest of thedebtstructure.

Fixed income

Mexico offers to buy back airport debtin first test of Amlo’s investor relations

With roughly six monthsuntil the US expansionbecomes the longest onrecord, there has beengrowing concern that the globaleconomy more broadly is running onlate-cycle fumes.

Lofty valuations, soaring profitmargins, a flattening yield curve and aUS Federal Reserve tightening in theface of (admittedly muted) inflationarypressures — especially as the sugarhigh of fiscal stimulus appears to bewearing off — make an easy narrative.

So much so that most analysts arealready baking in the next recession.

But making the case that we are latecycle is not so straightforward. At themoment, different metrics are sendingdifferent signals.

To determine whether or not thebest is behind us, Pierre Lafourcadeand Arend Kapteyn at UBS studied 120recessions across 40 countries overthe past four decades to determinewhat happens before a business cyclepeaks.

They concluded that acceleratingprivate consumption, investmentgrowth and strides in productivity,among other gauges, suggest that theglobal economy is not yet in the latecycle.

Given these results and consideringhow other indicators have fared, MrLafourcade said forecasts for acontraction are overhyped.

“People are too certain that arecession will come in 2020,” hesuggested.

But other data points allude tosomething more worrying. For one, UShousing prices have come down, ashave motor sales.

While David Page at Axa InvestmentManagers conceded that the globaleconomy is giving off “mixed signals,”he pointed out that these trends inhousing and motor sales wereconsistent with the late cycle.

Then there is the fiscal fade. USPresident Donald Trump’s tax cuts andFebruary’s spending package helpedto nudge growth but this materialsupport underpinning the globaleconomy is set to fade around the endof 2019.

Beyond the economy, GeorgeGoncalves of Nomura said it was notjust the flattening yield curve (perhapsthe most popular recession signal) thatwas pointing to the late cycle —financial markets were as well.

Take household net worth as a ratioof GDP and the total value of the S&P500 as a percentage of GDP — MrGonclaves said tracking the wealtheffect from rising asset values revealsa lot about the business cycle.

Both of these ratios sit near recordhighs. That is concerning indeed.

Mixed messages onrecession risk cloudinvestment choicesCOLBY SMITH

Financial markets are pointing toa late cycle, according to Nomura

Tail Risk

Andrés Manuel López Obrador hasvowed to scrap the new airport

FastFTOur global teamgives youmarket-movingnews and views,24 hours a dayft.com/fastft

ANJLI RAVAL

The near 30 per cent tumble in oil pricessince early October makes this week’sgathering of Opec in Vienna the mostkeenlyanticipatedsince2016.

The 15 members of the productioncartel including Saudi Arabia andKuwait and allies from outside thegroup, including Russia, will meet onThursday and Friday to decide whetherthey can agree to cut output to help propupthemarket.

The consensus is that the meeting inVienna will deliver a deal to lower out-put that goes some way to arresting afurtherdropinprices.

Less clear is the size of the cut that canbe agreed with Opec kingpin Saudi Ara-bia facing pressure from US presidentDonald Trump — a key political ally — tokeepoutputhighandpricesdown.

Most traders and analysts estimate areduction in excess of 1.4m barrels a dayisrequiredtomeaningfully liftprices.

However, few are certain Saudi-ledOpec will go that far with suggestionsthat the size of the cut may not even beclearly announced to avoid antagonis-ing the US. A fudge in which there is anagreement to restrict supply but whichis not explicitly communicated to themarket will “undoubtedly trigger a fur-ther sell-off”, said Amrita Sen at consul-tancyEnergyAspects.

Even worse would be the failure to

secure any kind of supply deal thatwould, she said, mean “a much, muchlower oil price”, suggesting Brent crudeoil couldheadtowards$50abarrel.

At first glance, Opec producers findthemselves in a similar predicament to2014 when oil began its steep drop fromabove $100 a barrel as supply — led bysoaring output from the US shale indus-try—startedtooutpacedemand.

US output is surging again as theindustry has become more efficient andthe recent period of relatively highpriceshasboostedconfidence inthesec-tor — with output expected to reach11.7m b/d next year or more than 12 percentofglobalsupply.

But therearedifferences thatwillhelpshape decision making at this meeting.In contrast to 2014, Opec is unlikely toraise production even higher in anattempttodrownoutrival supplies.

“Memories of late-2014, when Opecfailed to cut production and Brent oilprices nosedived . . . remain fresh,” saidGiovanni Staunovo, a commodity ana-lystatUBSWealthManagement.

The decision not to cut in 2014 taughtthe cartel two lessons, he added. “First,that US shale oil is here to stay; second,that relying on oil prices to rebalancethemarket isverycostly for thegroup.”

Spare production capacity from Opeccountries is also far lower than in prioryears.

Saudi Arabia faces a quandary: cutproduction and incur the wrath of US president Donald Trump intent onkeeping gasoline prices low for Ameri-can consumers or maintain output andrun the risk of a falling oil price furtherdamagingthekingdom’s finances.

Opec gathers after a fraught fewmonths in relations between Saudi Ara-bia and the US, which this summerdemanded the kingdom lift output tooffset any cuts in global supply from thereimposition of US sanctions againstIran.

However, as part of the sanctions, theTrump administration ultimatelyissued waivers to buyers of Iranian oil,leaving more crude on the market thanexpected.

Khalid Al Falih, Saudi Arabia’s energyminister, has indicated cuts of at least1mb/dcouldbeneeded.

Yet people briefed on the kingdom’soil policy said the need to secure US sup-port for Crown Prince Mohammed binSalman over the recent killing of dissi-dent journalist Jamal Khashoggi maydrive a decision not based on supply anddemandfactors.

“Many market participants havedoubts about the ability of Saudi Arabiato isolate political factors from its oiloutput decisions,” noted Bassam Fat-touh, director of the Oxford Institute forEnergyStudies.

Whatever decision Saudi Arabiawants tomake, support fromRussia, thekingdom’s partner in the oil alliance ofthe last twoyears, iskey.

Russia has touted the success of thepartnership that began with an agree-ment on supply cuts in 2016 andappeared onboard for a further movethis week. However, it has not backed adrasticcutwithanygusto.

“Yes, we have an agreement to pro-long our accords,” President VladimirPutin said at the G20 summit in BuenosAires over the weekend. “[But] there is

no final deal on volumes.” Russia’sdomesticproducersarekeentopumpatfull pelt, though the need to maintainthe oil alliance with Saudi Arabia mightforceMoscow’shand.

Alexander Novak, Russia’s energyminister, told state news agency Tass onFriday that “the current price range iscomfortable” but added that the coun-try’s oil companies could alter their pro-duction.

This could mean either a small cut byRussia of less than 300,000 b/d or thatMoscow freezes production at the levelachieved in November, said Andrey Pol-ishchuk,ananalystatRaiffeisenBank.

“Ahigheroilpricewillbemorebenefi-cial [for Russian oil companies] thanunlimited room for production growth,”hesaid.

One route for Saudi Arabia to placatethe US is to keep its own output as highas possible while ensuring other Opeccountriesreduceproduction.

The kingdom will probably lobbyNigeria and Libya, producers who wereleft out of the last supply deal becausetheir economies were recovering from politicalandsecuritycrisesathome.

Mr Falih’s trip to the Nigerian capitalof Abuja last week suggested it is underactive discussion, even as the Africannationhasyet tocommit to joining.

Meanwhile, Opec delegates said Iraq,whichhasseenexports resumefromthedisputed region of Kirkuk, is said to bekeen to keep increasing production. Atthe same time, countries with fallingproduction, such as Iran and Venezuela,might be unwilling to codify their loweroutputbysigningupto lowertargets.See Lex

Cartel set to back oil supply

curbs but kingdom faces US

pressure to keep prices low

‘Memoriesof late-2014,when Opecfailed to cutproductionand pricesnosedived,are fresh’

Russia, a keyOpec ally, is notkeen to seedrastic cutsAndrey Rudakov/Bloomberg

Analysis. Commodities

Output cut poses dilemma forOpec kingpin Saudi Arabia

Sources: Opec secretariat, secondary sources; Refinitiv; EIA

US crude output surgesAnnualised change in volume(’000 barrels per day)

-1,000

0

1,000

2,000

3,000

2010 12 14 16 18

Saudi Arabia’s oil productionon the riseMillion barrels per day

10.3

10.4

10.5

10.6

10.7

Aug 2018 Oct

Oil prices take a dive$ per barrel

WTIBrent

20

40

60

80

100

2016 17 18

GREGORY MEYER — NEW YORK

A US regulator has been chastised forits pursuit of Don Wilson, a leadingderivatives trader, with a judgederiding its misbegotten “flat earth”marketmanipulationcase.

Judge Richard Sullivan dismissed allcharges against Mr Wilson and DRW,his trading group, in a ruling two yearsafterheheardthecase.

The outcome is a serious setback forthe Commodity Futures Trading Com-mission — the federal agency thatpolices the multitrillion-dollar deriva-tives markets — as the case was seen as atestof itsdefinitionofmanipulation.

The CFTC had sought fines and a life-time ban for Mr Wilson and DRW basedon its claim that they netted $20m in ill-gottengainsbymanipulatinganinterestfuturesmarket.

But Judge Sullivan said Mr Wilson’strading was based on his “superiorknowledge” of the futures market’smechanics,notmanipulation.

“It is not illegal to be smarter thanyour counterparties in a swap transac-

tion, nor is it improper to understand afinancial product better than the peoplewhoinventedthatproduct,”hewrote.

The CFTC sued Mr Wilson and DRWin 2013, claiming the company usedthousands of bids to manipulate the set-tlement price of an obscure interest ratefutures contract in order to inflate thevalue of a $350m trading position. Over

the course of seven months, DRW sub-mitted manipulative bids more than1,000times, theCFTCsaid.

On the losing side of the trades wereJefferies, the investment bank, and MFGlobal, the now-defunct futures broker,accordingtocourtdocuments.

Unlike most parties subject to CFTCaction,MrWilsonrefusedtosettle.

The CFTC argued it needed only toshow that DRW sought to “affect” prices

in order to prove attempted manipula-tion. Judge Sullivan said evidence ofintent to create “artificial” prices wasrequired.

Underscoring the importance of thecase, exchanges and trade groups hadfiled a friend-of-the-court brief chal-lenging the CFTC’s interpretation of theattemptedmanipulationstatute.

Judge Sullivan was unsparing in hisruling. “The CFTC offered no evidenceor explanation demonstrating that set-tlement prices were artificially high,” hewrote.

“It is only the CFTC that has persistedin its cry of market manipulation, basedon little more than an ‘earth is flat’-styleconvictionthatsuchmanipulationmusthave happened because the marketremainedilliquid.”

The CFTC said it was reviewing thedecision. “We will continue to vigor-ously enforce the commission’s anti-manipulationprovisions,” it said.

DRW said it was “gratified” by the rul-ing that its trading was “lawful, legiti-mate and in line with market regula-tion”.

Derivatives

US judge berates trading regulator infailed ‘flat earth’ manipulation case

‘It is not illegal to besmarter than yourcounterparties in aswap transaction’

DECEMBER 4 2018 Section:Markets Time: 3/12/2018 - 19:15 User: stephen.smith Page Name: MARKETS1, Part,Page,Edition: LON, 27, 1

28 ★ Tuesday 4 December 2018

Michael HeiseMarkets Insight

Discovery missed out on a Wall Streetrally after the broadcaster saidadvertising revenue would disappointdue to lower Discovery Channel ratingsand a mixed performance in Europe forits Scripps Networks acquisition.

Discovery chief executive David Zaslavsaid US ad revenue growth of between 2and 3 per cent in the fourth quartershould be expected rather than itsprevious guidance of 3 to 5 per cent.

A JPMorgan downgrade to “marketperform” put Verizon under pressure.

The new management team at thetelecoms group raised the risk of anoperational misfire, it said.

Crown Castle, the telecoms networkowner, slipped after being cut fromMoffettNathanson’s “buy” list.

Wynn Resorts led the casino operatorshigher after Macau reported grossgaming revenue for November that grewmore than twice as much as expected.

Video games makers Activision andTake-Two Interactive dropped, whichdealers said might have been in responseto online marketplace Steam changing itsrevenue-sharing terms.

Cannabis grower Cronos soared on areport that Altria, the Marlboro cigarettemaker, was in early-stage talks to buy theCanadian group. Bryce Elder

Wall Street LondonEurozone

European markets hit their best levels ina fortnight as the tariff ceasefire betweenthe US and China triggered a rally forchipmakers, miners and auto stocks.

Rheinmetall, the German weapons andauto parts maker, gained on the back of aDeutsche Bank upgrade to “buy”.

Defence looked strong with the firstlarge order announcements coming asearly as the first quarter of 2019 and theauto unit should be less vulnerable to adownturn than peers given its reliance ontruck parts and after-market services, itsaid.

Toll road operator Vinci and Carrefour,the supermarket chain, retreated onworries of disruption from the anti-government protests in France.

Signify, formerly known as PhilipsLighting, slipped after JPMorganCazenove said cyclical headwinds facingthe business had been underestimatedand advised selling.

Argenx led the Stoxx 600 gainers afterthe Dutch antibody developer signed anexclusive licence agreement with asubsidiary of Johnson & Johnson.

Analysts said the deal, to co-develop aprotein linked with fighting blood cancer,validated Argenx’s early-stage pipelineand raised hopes that the group mightbecome a takeover target. Bryce Elder

A truce in US-China trade tensions and abuoyant oil price meant commoditystocks pulled the London market higher— but it could have been much better.

GlaxoSmithKline alone took 23 pointsoff the FTSE 100 with the shares fallingby the most in a decade in response to itspurchase of US cancer drug developerTesaro for $5.1bn.

Investors had not expected a moveback into commercial oncology andfeared GSK was “paying a full price for adilutive acquisition of second-rateassets”, said Barclays.

Retailer Dunelm jumped after PeelHunt turned positive.

Dunelm’s core business “has visiblysharpened up” since late summer, havingbeen held back by the 2016 purchase ofWorldstores, and raised the possibility ofspecial dividends restarting, it said.

Thomas Cook dropped to a new six-year low on uncertainty about whetherthe package holiday group couldnavigate the seasonal spike in debt levelsover the winter without raising new cash.

Its continued slide made Thomas Cooka candidate for relegation from the FTSE250 in this week’s index reshuffle.

Kier, the construction services group,also faced potential relegation after lastweek’s launch of a cash call. Bryce Elder

3 Trade war truce bolsters global stocks3 Oil gets further lift from Russia hopes3 Renminbi gains ground against dollar3 Budget hopes drive Italian yields lower

The US-China trade war ceasefire and astrong rally for oil prices helped driveglobal stock indices sharply higher —particularly in emerging markets — ledby the resources, technology andindustrials sectors.

The Chinese renminbi — and trade-sensitive currencies such as theAustralian dollar and South Korean won— made notable gains against thebroadly weaker US dollar while industrialmetals prices also performed strongly.

But while the agreement between USPresident Donald Trump and Xi Jinping,his Chinese counterpart, to halt imposingany new trade tariffs for 90 daysprompted a huge sigh of relief acrossmarkets, many commentators warnedagainst getting too carried away.

“We doubt that the ceasefire . . . willmark a real turning point in the tradewar,” said Oliver Jones at CapitalEconomics. “Particularly contentiousissues, like intellectual property rightsand market access, have yet to beaddressed, and we wouldn’t be surprisedif no agreement is reached in the 90-dayperiod.”

Meanwhile, oil prices received anadditional boost after Russia signalled itwould continue to co-operate with Saudi

Arabia on managing output, ahead of thisweek’s Opec meeting in Vienna, andCanada’s Alberta province ordered aproduction cut. Brent crude, which hit a13-month low last week, broke backabove the $60-a-barrel mark.

There was also encouraging news fromItaly, where reports suggested Rome wasseeking a compromise with Brussels overits deficit-boosting budget. Italy’s 10-yeargovernment bond yield fell and its spreadover the German Bund yield narrowed tothe lowest since October.

In the US Treasury market, the gap

between US two- and 10-year yields fellbelow 18 basis points to the lowest since2007. Recent commentary from JayPowell, chairman of the Federal Reserve,stoked speculation that the US centralbank could take a pause from raisinginterest rates next year.

Data released yesterday from theInstitute for Supply Management showedUS manufacturing activity reboundinglast month, largely due to a jump in neworders — which analysts suggestedreflected the strength of domesticdemand. Dave Shellock

What you need to know

Emerging market stocks lifted by US-China trade war truceFTSE Emerging index

Source: Refinitiv

460

470

480

490

500

510

520

Sep 2018 Dec

The day in the markets

Markets update

US Eurozone Japan UK China BrazilStocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp BovespaLevel 2774.81 1424.65 22574.76 7062.41 2654.80 90343.70% change on day 0.53 1.07 1.00 1.18 2.57 0.94Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $Level 97.047 1.135 113.605 1.274 6.888 3.828% change on day -0.231 0.265 0.048 -0.157 -0.801 -1.197Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bondYield 2.997 0.305 0.078 1.166 3.415 9.923Basis point change on day -1.910 -0.700 -0.820 -5.200 4.800 0.000World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX)Level 328.09 61.02 52.48 1217.55 14.24 2909.80% change on day 1.23 3.23 3.69 -0.71 -0.21 0.55Yesterday'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

| | | | | | | | | | | | | | | | | | | |

Oct 2018 Dec2560

2720

2880

3040

| | | | | | | | | | | | | | | | | | | |

Oct 2018 Dec1360

1440

1520

| | | | | | | | | | | | | | | | | | | |

Oct 2018 Dec6720

7040

7360

7680

Biggest movers% US Eurozone UK

Ups

Advanced Micro Devices 9.44Wynn Resorts 8.83Twitter 6.15Regeneron Pharmaceuticals 5.86yte 5.77

Kering 7.68Cnh Industrial 6.40Stmicroelectronics 6.03Saipem 5.51Dassault Systemes 5.33

Antofagasta 7.85Evraz 7.64Anglo American 6.97Wood (john) 6.20Bhp 5.89

%

Dow

ns

Discovery -8.72Discovery -8.20Hollyfrontier -7.09Take-two Interactive Software -6.78Activision Blizzard -5.01

Prices taken at 17:00 GMT

Carrefour -5.79Casino Guichard -3.68Coloplast -2.90Vi -2.20Kerry Grp -2.03Based on the constituents of the FTSE Eurofirst 300 Eurozone

Glaxosmithkline -7.62Kingfisher -2.80Bt -2.06Royal Mail -1.38British Land -1.31

All data provided by Morningstar unless otherwise noted.

T he completion of Greece’sfinancial rescue pro-gramme this summermarked the end of the euro-zone crisis. At least, those

were the hopes of European policymak-ers.Reality,however, is less forgiving.

The confrontation between Italy andthe EU Commission over fiscal rules hasshown that the eurozone remains vul-nerable tobondmarketbreakdowns.

Although the eurozone has under-gone institutional reforms, such as theestablishment of the European StabilityMechanism, a body made up of euro-zone countries that helps any memberin financial distress, and the bankingunion (though incomplete), major defi-ciencies remain. Sovereign debt is stilltoo high in too many places, and banksare ladenwithbadloans.

The European Central Bank with itsunconventional monetary policies hasbeen a major line of defence againstmarket turbulence. But without theECB’s safety net, financial stress couldeasily trigger severe bond market dislo-cations in the eurozone with severe con-sequences for therealeconomy.

Hence the lively discussion about howto build up new defences against thenext shock. Yet creditor countries havenot shown any willingness to accept fur-ther significant debt mutualisation anddebtor countries do not want to forfeitany sovereignty by being subjected toreformandausterityprogrammes.

Giventhepopulisticbacklashinmanyeurozone countries, a successful replayof past rescue plans cannot be relieduponinthefuture.

An idea that might be capable of pre-venting or at least mitigating bond mar-ket dislocations is a European bondinsurance scheme. The concept of sov-ereign insurance avoids most of the

problems encountered by other rescuetools. It avoids the heavy political bur-den of debt mutualisation and austerityregimes, actively encourages privatesector lending and reduces contagionbetweensovereigndebtors.

How would it work? The easiest waywould be to expand the toolbox of theESM. It would function as a bondinsurer in which it would offer a partialguarantee for eligible sovereign bondsand thereby partially protect investorsagainst potential haircuts. Nationswishing to make use of this guaranteewould have to pay a pre-determined feefor the guaranteed amount. The insur-

ance scheme also has other advantagesforeurozonecountries.Thefirepowerofthe ESM would be strongly enhanced asthe concept ensures that private inves-tors keep their skin in the game in diffi-cultmarketsituations.

Furthermore, the bond insurancescheme has a disciplinary effect ondebtors as they will try to enhance theircredit quality and avoid the payment ofpremiums. The ESM, in turn, does nothave to raise funds in capital marketsunlessadefaultactuallyoccurs.

A critical issue would be the setting ofthe premiums. Set them too high andthe insurance will not be used. Set toolow and it degenerates into a disguisedeurobond, a bond whose liability isjointlysharedbyeurozonecountries.

Instead, fees should be aligned to therating of a country and structural fac-

tors like fiscal deficits or debt. A simpleformula could apply: the triple A refi-nancingcostsof theESM,plusariskpre-mium that reflects both the rating of thecountryandanyprogress ithasmadeonitspublic finances.

Setting the insurance fee in this waywould incorporate an element of soli-darity between countries as fees wouldnot be determined by actual marketprices such as credit default swaps,which can be sky high in a crisis situa-tion. The pricing would have a positiveincentive effect on the lenders — when acountry improves its rating or struc-tural factors, insurance fees will decline.

In case of a sovereign insolvency, theESM would have to settle the insuranceclaim in cash or short-term ESM notesto the bondholder. The loss woulddepend on the amount of technicalreserves that have been accumulatedthrough insurance fees. If no sovereigninsolvency occurs over the length of thecontract, the accumulated fees could beused for building reserves or as a payouttotheshareholdersof theESM.

Such insurance schemes are not anuntested idea.Theyhavebeenuseddur-ing the banking crisis when lenders inthe US and Europe took advantage ofpublic guarantees. Credit enhancement— a form of sovereign bond insurance —was applied to the restructured Greekdebt instruments after the insolvency of2012. It basically also applies in nationalbanking deposit insurance schemeswhere contribution rates are related tothe rating of the contributing institu-tion. There is no reason not to apply thisconcept tosovereignborrowers.

Michael Heise is chief economist at Allianzand author of ‘Emerging From the EuroDebt Crisis: Making the Single CurrencyWork’

Insurance tacklesdanger of sovereignbond shockwaves

Without the ECB’s safetynet, financial stress couldeasily trigger severe bondmarket dislocations

DECEMBER 4 2018 Section:Markets Time: 3/12/2018 - 19:14 User: stephen.smith Page Name: MARKETS2, Part,Page,Edition: LON, 28, 1

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