WORLD BUSINESS NEWSPAPER

FRIDAY 12 DECEMBER 2014

UK £2.50 Channel Islands £2.80; Republic of Ireland €3.00

Liberate London

Person of the Year

Seasonal appeal

Why the capital should leave Little England — PHILIP STEPHENS, PAGE 13

Apple’s Tim Cook steps out from Jobs’ shadow — BIG READ, PAGE 11

FT teams up with International Rescue Committee — PAGE 10

UK online shoppers lead the world

ecommerce per head

i Google shuts news service in Spain

£1,968

UK

Google is shutting down its news service in Spain in response to a hostile European legal and political environment.— PAGE 17; EDITORIAL COMMENT, PAGE 12

£1,356

Australia

£1,171

US

Britain spends more money online per head than any other developed country, but the love affair with social media may be on the wane, writes Daniel Thomas. Consumers in the UK spend almost £2,000 online for goods each year on average, 50 per cent more than the nexthighest valued market of Australia, according to research from Ofcom, the communications regulator. “There has been a traditional strong propensity for catalogue shopping among UK consumers and this appears to be translating also to online,” said Kester Mann, an analyst at CCS Insight. The high use of debit and credit cards in the UK was also cited as an important factor by Ofcom. However, it also found a surprising drop in the proportion of online adults in the UK accessing social networks each week from 65 per cent in September 2013 to 56 per cent in October 2014, the steepest fall of any of the countries surveyed.

Briefing

Value of business-to-consumer ecommerce per head, 2013

i Banks probed over forex algorithms

£918

France

New York’s regulator is probing whether the use of algorithms in currency trading was systemic at Barclays and Deutsche Bank.— PAGE 17

£909

Germany

£844

Japan

i Europe on the road to safer trucks

£363 Italy £218

EU governments have agreed rules that could put an end to the brick-shaped trucks that campaign groups say are inefficient and dangerous to other road users.— PAGE 17; INDUSTRY WINS DELAY, PAGE 20

S Korea

i Carney sweeps aside secrecy at BoE Mark Carney, Bank of England governor, swept aside some of the secrecy around the bank’s deliberations, promising to publish minutes of interest rate decisions when they are announced.— PAGE 2

i Kerry intervenes in Lima climate talks US secretary of state John Kerry has made a visit to stalled UN climate talks in Lima and warned governments not to get bogged down in “dysfunctional” debates over a global climate deal.— PAGE 8

FT graphic. Source: Ofcom; picture, Getty

Deliveries in turmoil page 4

i CIA chief admits ‘abhorrent’ mistakes

Fears resurface of EU stagnation 3 ECB cheap loans sale falls short 3 Policy makers split over full-on quantitative easing CLAIRE JONES — FRANKFURT

Hopes that the European Central Bank will resort to a full-scale programme of government bond purchases rose yesterday after a poor take-up of cheap ECB cash sparked fresh doubts about policy makers’ efforts to stave off stagnation. The bank injected €129.8bn into the eurozone’s banking system through another offer of four-year loans, but the figure missed all but the most modest of market expectations. The ECB plans to swell its balance sheet by €1tn to a level last seen in 2012, as part of efforts to lift inflation and boost growth in the eurozone. Prices rose by 0.3 per cent in the year to November, raising fears that the region could be heading for a prolonged

period of Japan-style stagnation. Those concerns were underscored yesterday when France posted a 0.2 per cent fall in retail prices between October and November, a bigger decline than economists had forecast. But the ECB is split over whether to embark on full-blown quantitative easing as a way to achieve its goals. Such a policy is strongly opposed by Bundesbank president Jens Weidmann and other hawkish members of the bank’s governing council. They believe that the central bank’s existing measures, which include buying covered bonds and asset-backed securities, and auctioning cheap cash to eurozone lenders, will be enough to raise inflation to the ECB’s target of below, but close to, 2 per cent. Analysts

think that the disappointing take-up of the auction has weakened their hand. Nick Matthews, economist at Nomura, said: “The result reduces the strength of the ECB hawks’ argument that existing policy measures are enough.” Meanwhile, fresh evidence emerged of the diverging fortunes of the US and eurozone economies. US retail sales rose 0.7 per cent in November, the most in eight months, in a sign that faster jobs growth and the rapid drop in petrol prices were boosting consumption. The strong numbers will further increase the US Federal Reserve’s confidence in the growth outlook for 2015 and make an interest rate rise by the summer more likely. The probability of full-blown QE in the eurozone increased this month

‘The result reduces the strength of the ECB hawks’ argument that existing policy measures are enough’

when the ECB changed its language to say it “intended” rather than “expected” to ramp up its balance sheet to €3tn. Yesterday’s auction suggested that it would struggle to do so without further action, especially as banks are expected to have to repay hundreds of billions of euros in outstanding ECB loans in the coming months. “The bottom line is that this should help shift the policy debate to policies fixed on stimulating demand,” said Huw van Steenis of Morgan Stanley. “We think the measures the ECB has announced so far will fall short . . . by €400bn and €600bn.” Additional reporting by Robin Harding in Washington Lex page 16 Short View page 17

Ukip rift as donor threatens to pull cash unless seat found for ex-Tory Hamilton KIRAN STACEY AND JIM PICKARD

Juncker feeling the heat over sweetheart tax deals US tech royalty from Amazon to Apple set up their European homes in Luxembourg. Enticing them with sweetheart tax deals was hailed as a triumph of economic reinvention for one of Europe’s smallest enclaves. But 10 years on and its mastermind Jean-Claude Juncker is under political fire as he reaches his career zenith as European Commission president. Report i PAGE 8

War has broken out at the top of the UK Independence party, with officials accusing one of its most significant donors of trying to press them into accepting the candidacy of Neil Hamilton, the former Conservative MP. Two senior Ukip officials said Stuart Wheeler, the party’s second-largest donor, had threatened not to give any more money before the next election if Mr Hamilton does not get a seat. The fallout could prove expensive for the party as it approaches its most important general election. Mr Wheeler has made £700,000 of donations to Ukip in the past five years, and was expected to remain an important donor. A row blew up on Wednesday night after a letter was leaked from Ukip to Mr Hamilton asking him to explain

apparent anomalies in his expenses. Mr Hamilton, who withdrew his candidacy and called the leak a “dirty tricks” campaign, did not comment on the veracity of the allegations. Mr Hamilton, who was accused of accepting money to ask parliamentary questions when he was a Tory MP, is supported by Mr Wheeler. One member of the party leadership said: “I don’t care how powerful his patron is, we are not caving to this.” Andrew Reid, who took over from Mr Wheeler as party treasurer six months ago, said: “Nobody gets to buy a seat for someone else in Ukip.” Other people in the party are furious over the treatment of Mr Hamilton, who they claim stood aside from the Boston and Skegness seat under heavy pressure from Nigel Farage, the party leader. One senior party member close to the dispute said: “This is all to do with

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Nigel’s ego. He cannot bear the thought Neil might be an MP but not Nigel.” The person criticised Mr Reid for alienating Mr Wheeler, saying he had done nothing since becoming treasurer “except infuriate Stuart Wheeler”. Mr Reid retorted that he had been working hard to secure new donors for the party, adding: “We have got the funds to see us through until the election — we will be fine.” Mr Wheeler has claimed the party is running out of money, having received less than £100,000 in donations in the third quarter of this year. One senior official said the party had between £70,000 and £80,000 in the bank. Mr Hamilton would not comment. Mr Wheeler said he would not comment on private discussions and refused to say whether he would donate more money before the election.





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The director of the CIA admitted that the agency made serious mistakes in how it ran a programme to interrogate terror suspects.— PAGE 8

i US oil price drops below $60 a barrel US crude closed below $60 a barrel for the first time in five-and-a-half years, sliding amid concerns consumption will lag behind surging output.— PAGE 34

i Lending Club leaps 65% on debut Lending Club, the US start-up that set out to bypass traditional banking, soared on its New York debut with a valuation of $8.9bn.— PAGE 22; LEX, PAGE 16

Datawatch Cost of US petrol Minutes of work* required to buy a gallon of petrol

* US manufacturing workers Source: Lombard Street Research

The average US manufacturing worker has to work 5.8 min to earn enough to buy a gallon of petrol. Under Bill Clinton it was 4.1 min; under George W. Bush, 5.5 min; and Barack Obama, until last year, 7 min.

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FINANCIAL TIMES

Friday 12 December 2014

NATIONAL Transparency

Financial regulator

Carney discards Bank of England secrecy

FCA criticised for inaction on annuities mis-sellers

Minutes to be published as soon as policy decisions revealed, says governor Mark Carney, Bank of England governor, swept aside much of the secrecy that traditionally surrounds the central bank’s deliberations yesterday, promising to publish voting details and minutes of interest rate decisions at the same time they are announced. The BoE also wants to hold fewer monetary policy meetings and, after reviewing its practice of deleting recordings, has decided it will publish transcripts of the meetings after eight years. The changes are part of reforms to bolster the transparency of the BoE so that parliament and the public are better able to hold it to account for the many powers it has acquired. The BoE’s communications on monetary policy have veered dramatically

between hawkish messages, such as at the Mansion House speech in June, and dovish noises, such as in the August inflation report. The simultaneous release of decisions, minutes and votes will end the drip-feeding of sometimes contradictory information to the public and markets. Recognising some of the confusions the BoE has caused this year, Mr Carney said the procedures will “make policy signals as clear as possible”. From August 2015, the BoE’s Monetary Policy Committee will publish the minutes of its meeting and the quarterly Inflation Report at the same time as it announces its decision on whether to move interest rates. Mr Carney said the reforms were “the most significant set of changes to how we present and explain our interest rate decisions since the Monetary Policy Committee was formed in 1997 . . . These changes will enhance our transparency and make us more accountable to the British people.”

Home Office

Data revolution

CHRIS GILES — ECONOMICS EDITOR

European view ECB poised to decide on content of its minutes The European Central Bank is set to decide how much information it will include in the minutes of its council meetings, as it moves into line with counterparts in the US, the UK and Japan. Top officials on the ECB’s governing council are expected to discuss and possibly finalise the format of the accounts next week. The ECB council seldom votes because most decisions are reached by consensus. Some members worry that revealing the preferences of those who speak out will affect the discussion and expose national central bank governors to pressure from their governments. Claire Jones

The measures were welcomed by Andrew Tyrie, chairman of parliament’s Treasury committee, who felt the governor had gone further than expected. “The bank will have an organisational structure more recognisably that of a modern institution, in keeping with its greatly expanded powers and responsibilities. It will also have a body — a board in all but name — unambiguously in charge of managing its business,” he said. The BoE intends to follow the lead of the US Federal Reserve and European Central Bank in having just eight gatherings a year. Having moved from the Bank of Canada, which meets eight times a year, to monthly monetary policy meetings at the BoE, Mr Carney said: “I think we meet too often — that is the honest answer.” This change ultimately will require legislation, but as part of the reform effort, the BoE has proposed to merge the MPC and four meetings of the

Financial Policy Committee from 2016, relieving some of the burden of the monthly decision-making process. George Osborne, chancellor, said he would consider amending the law after the general election to permit the changes. He described the proposals as “an important improvement to the policy making process”. The governor said that moving to eight MPC meetings a year would not prevent the BoE acting speedily in an emergency. Just like at present, Mr Carney said that if necessary, “we could meet this afternoon”. The review was conducted by Kevin Warsh, a former Fed governor. Other changes include publishing the minutes of meetings of the BoE court, its governing body, between 1914 and 1987, to align practices with the rest of Whitehall and publishing the minutes of court between 2007 and 2009, at the request of the Treasury select committee, when the BoE has been accused of acting slowly as the financial crisis developed.

Lenders to be fined if illegal immigrants open accounts HELEN WARRELL — PUBLIC POLICY CORRESPONDENT

Banks and building societies that open current accounts for known illegal immigrants will face fines or even criminal sanctions, under new powers that come into force today. The measures are part of a Home Office strategy to make life in the UK more hostile to foreigners without visas, amid rising public concern over immigration. Ministers hope rules to prevent immigration offenders on an anti-fraud database from accessing current accounts will also make it harder for them to get credit cards, mortgages or loans. The Home Office is attempting to cut down on illegal immigration in order to meet the Conservatives’ 2010 target of reducing net migration to less than 100,000. However, hopes of meeting this pledge were thwarted last month, after new figures showed the total has soared to 260,000 during the past year. The rise is partly due to the strengthening UK economy attracting workers from across Europe, who cannot be restricted because of EU freedom of movement rules. There are also signs that, despite the tougher visa regime imposed three years ago, more non-EU migrants are arriving to work in Britain. It emerged this summer that the Home Office had lost track of nearly 175,000 immigrants and failed asylum seekers. In response, the department is stepping up efforts to prevent illegal immigration, including banning these individuals from obtaining driving licences and introducing landlord checks so they cannot rent private housing. Officials said obtaining driving licences and bank accounts made it much easier for illegal migrants to access benefits and services they were not entitled to, and enabled them to establish a “more viable” life in the UK.

Sitting pretty: ducks take stock during floods in Oxfordshire in February, when software groups used government data to help victims — Andrew Matthews/PA

Whitehall makes flood risk numbers open to public minute readings from every river level sensor in the UK. Underlining the capacity of open data to unleash entrepreneurialism, Mr Maude said that within two days the group had come up with a range of solutions to help — “from a phone service that connects people with their energy supplier in a power cut, to an app that alerts Twitter users to local volunteering opportunities”. The release of this information to the public would enable large and small businesses to develop local flood warning systems or integrate the data into their systems, he argued. The Land Registry has begun to open up its data, beginning with figures on the price paid for properties, which it started publishing last year.

SARAH NEVILLE AND KATE ALLEN

Detailed information on flood risks is to be released to the public and more information on property ownership could follow as Whitehall opens up more data to improve the quality of public services and spur new businesses. Francis Maude, the Cabinet Office minister, announced yesterday that the Environment Agency would publish the information, which had previously been available only to a small number of insurance companies for a fee. During serious flooding at the start of the year, the government brought together 200 software developers and computer programmers who were given access to the data, which included 15-

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Yesterday it said it was in discussion “over the expected release of further data sets next year, within the possibilities of existing laws including the Data Protection Act”. There was speculation this could include information on who owns every property and piece of land in the UK. However, underlining the potential sensitivities raised by the data revolution, some market analysts fear making all its data free would kill off its income streams, and publishing property ownership data could encourage fraud. Johnny Morris, head of research at Hamptons International, said the most important data sets to release were Valuation Office Agency figures on housing stock and the rental market. Planning data should also be freed up, he said.

Tax credits

Study reveals pay plight of council workers SARAH O’CONNOR — EMPLOYMENT CORRESPONDENT

Number One Southwark Bridge, London SE1 9HL

The City regulator was accused yesterday of sweeping annuity mis-selling “under the carpet” after a two-year inquiry uncovered evidence of sales failings but did not recommend fines or customer compensation. The comments came from consumer groups and pension experts after the Financial Conduct Authority released the findings of a long-awaited investigation into the annuity market that found competition “was not working well for consumers”. The inquiry, launched in 2013, found evidence that some insurers were incentivising call-centre staff to sell annuities to existing customers. There was also evidence that they did not explain to customers the benefits of shopping around for an annuity or that they could get a better rate if they were in poorer health. In February this year the FCA found that eight out of 10 customers could have received a more advantageous deal for their annuity, which converts pension savings into a guaranteed income, had they bought not from their existing provider but instead on the open market. Sales of annuities have dropped since George Osborne, the chancellor, announced big reforms to pension rules in his March Budget, but in 2012 more than 400,000 products were sold with a value of £14bn. The FCA said yesterday it “was clear that firms’ behaviour” was contributing to consumers not shopping around and “potentially missing out” on a higher income. However, instead of taking action the regulator has asked the majority of companies involved in its review to do further work under its supervision to establish if the sale of conventional annuities to people in poor health was “indicative of a more widespread problem”. “It is truly shocking that the FCA’s inquiry uncovers what seems clear evi-

‘It would appear that they are sweeping mis-selling under the carpet’

A private bank unlike any other.

FINANCIAL TIMES

JOSEPHINE CUMBO AND ALISTAIR GRAY

Local government employees are as likely to receive tax credits to top up their incomes as workers in the retail sector, according to research that suggests there are limits to how much further their pay can be squeezed by public spending cuts. Research commissioned by the Unison union shows that 11 per cent of local government workers in England and Wales receive working tax credits — welfare payments to families with low incomes. This is about the same as the proportion of workers getting such credits in the retail and administrative sectors, and second only to the hospitality sector, where the figure is closer to 18 per cent. The report, by the New Policy Institute think-tank, concluded: “The local government sector in some ways resembles some of the lowest-paying and most insecure parts of the private sector — namely retail and hospitality.” Heather Wakefield, Unison’s head of local government, said years of pay restraint for these workers had created “an increasingly impoverished and

demotivated workforce, with taxpayers forced to fund tax credits”. It was “a completely false economy”, she added. The Treasury declined to comment on the research, other than to point out that central government did not set local government pay. The Local Government Association said the government had cut local government funding by 40 per cent over the course of this parliament, and that a

‘I’m not sure government can continue to squeeze wages as it’s been doing’ Adam Tinson, NPI researcher large proportion of that funding went on staff. The public sector pay bill accounts for about half of all day-to-day government spending. As a result, public sector job cuts and pay squeezes have been a significant part of the government’s attempt to repair the public finances. Local government workers have seen their pay fall about 15 per cent in real terms since 2006, according to the NPI.

Adam Tinson, who undertook the NPI research, said the findings implied there were limits to how much more public money could be saved by compressing the pay of local government workers. “I’m not sure the government can continue to squeeze wages in local government as it’s been doing for the last number of years,” he said. The LGA said local government workers would receive a 2.2 per cent pay rise in January, with those on the lowest incomes receiving a bigger increase. This would be higher than the rate of inflation. Data on working tax credits are difficult to analyse because the benefit is paid to families with low incomes — not to individual workers. This means that any payments depend on family circumstances, including the income of a worker’s partner and whether they have children. As a result, the NPI said its figures were only “broadly indicative of low pay” rather than a direct indicator. The local government workforce represents about a quarter of the public sector workforce, but accounts for about half the money spent on working tax credits for public sector workers.

Malcolm McLean, consultant dence of persistent mis-selling, yet it is not proposing any immediate action to stop it,” said Ros Altmann, the government’s champion for older workers who also works as an independent pensions expert. Other pension experts questioned why the regulator did not act now given it had been investigating the market since 2013 and found evidence of poor practice. “It would appear that they are sweeping past mis-selling under the carpet,” said Malcolm McLean, senior consultant with Barnett Waddingham. The lack of immediate remedial action against suppliers came as a relief to the industry, which is already grappling with Mr Osborne’s radical pension reforms. The chancellor’s overhaul has led to a dramatic fall in sales of annuities, among life insurers’ most lucrative products. Otto Thoresen, director-general of the Association of British Insurers, highlighted that the report found annuities “bought on the open market can be good value for money”. “The industry will be looking closely at the report findings, and working with the regulator to address areas of concern,” he said. However, some lawyers cautioned that there was still an implied threat of fines for annuity providers. Paul Edmondson, a regulatory lawyer at CMS, said: “The big concern is retrospective action. We don’t know yet whether any of that will be required.” Yesterday the FCA also outlined measures to ensure that customers buying retirement income products were not confused by the communications they received from companies. “Consumers have been repeatedly let down by the pensions industry, with years wiped off people’s hard-earned savings, so it’s welcome to see the FCA working with the industry to clean up mistakes from the past,” said Which, the consumer group. Lombard page 23

Ros Altmann, pensions expert: FCA’s inaction is ‘truly shocking’

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Friday 12 December 2014

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FINANCIAL TIMES

NATIONAL

Miliband promises to balance books in power Labour leader refuses to go into detail but admits he faces ‘essential test of credibility’ on public finances GEORGE PARKER — POLITICAL EDITOR

Ed Miliband has finally confronted his perceived weakness on economic policy in a speech pledging that a Labour government would cut public borrowing every year until the country’s books are balanced and debt is on a downward path. Having failed to mention the £91bn deficit in his Labour conference speech in September, Mr Miliband admitted yesterday the party faced “an essential test of credibility” in showing it could run the public finances responsibly. Mr Miliband has been emboldened to enter the deficit debate following last week’s furore about whether Conservative plans to cut spending would cut the state to its smallest level since the 1930s. But speaking in the City, the Labour leader refused to go into detail over the level of cuts he intended to make to balance the current day-to-day deficit “as soon as possible” in the next parliament. Nor would Mr Miliband discuss the policy mix he favours for tackling public borrowing. The coalition is addressing the deficit with an 80/20 split between spending cuts and higher taxes. “It’s right to say that the right place to know exactly the nature of spending reductions is when you get into government,” he said. However, his speech at Chartered Accountants’ Hall was the most comprehensive statement yet by the Labour leader of the broad principles he would apply to the public finances if he wins the next election. Setting out his party’s pitch, he said: “We will build a strong economic foundation and balance the books; we will cut the deficit every year while securing the future of the NHS; none of our manifesto commitments will require additional borrowing.” Mr Miliband repeated Labour’s promise to eradicate the current deficit in the next parliament and to put debt on a downward path as a share of national output, but the party’s rules allow it to borrow to fund existing capital spending plans.

Looking ahead: Ed Miliband speaks on party economic policy in the City yesterday. He accused the Tories of being ‘extreme’ — Facundo Arrizabalaga/epa

Path of public sector net debt under different policy assumptions % GDP Outturn

OBR forecast

Current budget balance (1.2% overall deficit)

National debt should fall as soon as possible in the next parliament Budget balance

Economists complained after Ed Miliband’s speech on the deficit that no political party had yet given enough detail on how to repair Britain’s public finances. Ahead of next May’s general election, the City is worried that many politicians are avoiding hard truths about possible tax rises and awkward cuts in spending. Business is increasingly concerned about electoral predictions pointing to a fragmented parliament and an unstable government. “People are worried about a whole range of political risks — there are risks in a Conservative majority, there are risks in a hung parliament, and there are risks in a Labour majority,” said Michael Saunders, an economist at Citi. “On fiscal policy there is a sizeable hole in the coalition’s plans in that we don’t quite know how the squeeze on spending will be achieved, and there’s an even bigger hole in Labour’s plans in that we don’t even know what their

2007-08 2015-16 2023-24 2031-32 2035-36 2027-28 2011-12 2019-20 FT graphic

Sources: OBR

He also mentioned some ways of raising tax revenue, such as restoring the top 50p rate of income tax. But he would not reveal the ratio of tax increases to spending cuts that Labour aimed to achieve. Philip Rush, an economist at Nomura, said the speech did little to change the City’s impression of Labour’s approach to the public finances. “People generally believe their fiscal policy will be looser . . . but ultimately [that] they’ll get there, they’ll balance the books.” Investors fret far more about the possibility the election will result in a hung parliament and political chaos, he said. “Those kind of bigger picture issues are the kind of things that worry markets, rather than: ‘Is that little bit of extra borrowing that Labour’s doing going to make me not want to hold gilts?’”. Economists also said there was no point in dwelling on specific numbers, since the scale of the required fiscal consolidation was likely to change, depending on whether the economy proved stronger or weaker than expected.

All-party talks

PM tells N Ireland leaders to ‘start delivering’ VINCENT BOLAND — DUBLIN

David Cameron warned Northern Ireland’s political leaders that they needed to “start delivering”, as he and the Irish premier joined all-party talks in Belfast yesterday aimed at resolving tricky issues linked to the past. Mr Cameron and Enda Kenny entered the talks amid a mood of cautious optimism that they might be able to persuade the parties to break months of deadlock that have effectively frozen Northern Irish politics. Their presence in Belfast suggests frustration in London and Dublin that the deadlock has lasted so long, and has raised expectations that they may finally sense that a breakthrough is possible. The talks are taking place a year after a similar attempt to reach an agreement broke down. The UK premier

Four main flashpoints set for discussion Flags Unionists pledge allegiance to the Union Jack, nationalists to the Irish tricolour. There are constant clashes over which flag flies where. Parades Every summer is marching season for unionists. Some Orange parades pass through or near nationalist areas. The issue could in time become less sensitive. Dealing with the past Probably the most intractable issue. More than 3,500 people were killed in the Troubles; many murders are unsolved. Welfare reform Painful spending cuts are likely.

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City fears politicians are avoiding hard truths on possible tax rises and spending cuts spending and tax plans are,” Mr Saunders added. The independent Office for Budget Responsibility predicts Britain will have public sector net borrowing of £91.3bn, or 5 per cent of gross domestic product, this fiscal year. Labour’s goal over the next parliament is to achieve a current budget surplus, so that revenues more than cover day-to-day spending. That is a less ambitious target than the Conservatives, who on the latest projections promise an absolute surplus of £23bn by the end of the next parliament. On current plans, that implies the gap between the two parties’ public spending plans could be roughly £27bn a year by 2019/20. But neither party has explained how exactly they would reach their respective surpluses — whether through further departmental spending cuts, welfare cuts or tax increases. Mr Miliband said yesterday that “unprotected” departmental spending would have to be cut by an unspecified amount every year.

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Cuts in spending for non-protected departments every year until current budget balanced Detailed work on cuts can only take place when in government

90 80

‘Tough and balanced’ approach will balance books

Investor uncertainty

SARAH O’CONNOR

HM Treasury projection

warned the Northern Irish leaders that they had to reach agreement for the sake of public confidence and to revive the province’s economy and society. Mr Cameron said: “The people outside that room, they are the people who matter and they want to see their politicians deliver . . . hope agreement can be reached and that is why I am here today.” In a sign of how seriously the Irish government is taking the talks, Mr Kenny, the taoiseach, was joined in the Dublin delegation by Joan Burton, deputy prime minister, and Charlie Flanagan, foreign minister, who cut short a visit to China to take part. Mr Kenny said he understood that the mood of the Northern Ireland parties ahead of the talks was “very good”, and added: “We look forward to fruitful discussion.” Theresa Villiers, the Northern Ireland secretary, warned yesterday that Westminster could not provide “a big cheque” to make painful financial decisions easier for the executive.

While George Osborne, chancellor, wants to run a surplus on all government spending, Labour only wants to balance the books on day-to-day spending. Mr Miliband plans to take advantage of low rates of government borrowing to spend on infrastructure. The Labour leader believes that Mr Osborne’s plan to carry on cutting after he has balanced the current deficit showed that: “They are doing it not because they have to do it but because they want to do it. “They have been exposed in the Autumn Statement for who they really are: not compassionate Conservatives at all but extreme, ideological and com-

mitted to a dramatic shrinking of the state, whatever the consequences.” Labour’s plan to cut “unprotected” departmental spending every year until the structural deficit was cleared reflected his view that “there is no path to growth and prosperity for working peoplewhichdoesnottacklethedeficit”. But he said the wealthy would be asked to pay more, through the restoration of the 50p rate of income tax, a new “mansion tax” on expensive homes, a bankers’ bonus tax and the reversal of a planned cut in corporation tax. “Some of the wealthiest in our society, who often have the loudest voices, will vociferously complain about some of the measures, including the mansion tax, but it is right and fair for the country,” he said. Mr Miliband’s Labour critics believe he has left it far too late to try to establish his economic credibility; the polls show that Labour trails badly behind the Tories on questions of trust on the economy. Lord Mandelson, former Labour business secretary, said this week the party had “an opportunity” to attack the Tories on questions of fairness if only Mr Miliband could come up with a “reasonable” plan for getting to grips with the deficit. Conservative MPs insist that Mr Osborne’s plan to eliminate the deficit by cutting public spending — especially welfare — and through closing tax loopholes will be popular with the public, especially when coupled with his promise of tax cuts. The Tories hit back at Mr Miliband’s City speech, saying his plan involved “more borrowing” into the indefinite future. Mr Osborne’s allies also cited new evidence that the government’s economic plan was working, with official EU figures showing that Britain’s standard of living has climbed to the joint fourthhighest in the EU, behind Luxembourg, Germany and Austria. Britain has overtaken the Netherlands and is significantly ahead of France, Italy and Spain. Editorial Comment page 12 Martin Wolf page 13

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NATIONAL 4G networks

Energy secretary

Row erupts over emergency calls upgrade

Davey calls for tougher rules on fossil fuel asset ‘risks’

Other countries believe technology is not ready for such a switch HELEN WARRELL AND DANIEL THOMAS

The UK is pushing ahead with an experiment to move emergency service communications on to mobile phone networks in 2016 even though other countries have held back because the technology is still being developed. Ministers plan to award a £1.2bn contract before next May’s election to abolish the dedicated emergency services radio spectrum and shift emergency calls to 4G networks, which are faster and allow data transfer. However, during a big incident operators would give priority to police, fire and ambulance

customers, raising fears that members of the public would face a mobile blackout. Other countries including Germany have considered moving their first responder services to 3G and 4G but have concluded that the technology is not yet ready. A white paper published by the German Federal Ministry of the Interior concluded that “mission critical” broadband voice plus data networks would not be available before 2025 at the earliest. The US has decided against putting emergency services on to commercial networks and is building a separate 4G spectrum for this purpose. Under the UK’s plans, the shared mobile system would be phased in from 2016. Labour is pressing Home Office ministers to halt the tender for emergency

service communications after raising concerns that the speed of the process will put public safety at risk. Jack Dromey, Labour’s shadow policing minister, said the Home Office’s “unseemly haste” to complete the contracting process before the election meant there was no time to trial the programme. “We’re all in favour of looking at a new and better system for the future, and we’re in favour of looking at the full range of suppliers “ Mr Dromey said. “But you need a process of integrity which does not take risks with the emergency services, and we’ve got exactly the reverse.” The Home Office said that Britain’s emergency services needed a “modernised communications network” to help them protect the public and save lives. “Interest in providing the new Emer-

gency Services Network and its supporting elements is strong,” it said. “The tenders are currently being evaluated and the resulting communications network will be among the best in the world.” The £2.9bn emergency service communications contract is held by one company, Airwave, and covers a much longer period than the new tender, which ministers have split into four lots to make it more competitive. Peter Neyroud, former head of the National Policing Improvement Agency, was involved in negotiating the deal with Airwave. He said that the complexity of several companies with no experience trying to co-ordinate plans for the emergency services presented another danger. “It’s surprising that they would take a risk like this on a service where you

might have an officer in a firearms incident needing to communicate,” he said. “It has the feel of some of the NHS IT programmes where people were in such a rush that they didn’t give themselves the elbow room to sort out problems.” According to the Home Office, mobile bidders include Arqiva, EE, Telefónica UK and Vodafone, as well as Airwave, the incumbent. Mobile operators say they are confident that their 4G networks will be as reliable as the Tetra radio services provided by Airwave, while also offering the chance to lower the cost of devices considerably. The emergency 4G networks will be in place to connect the first police forces by 2016, say industry executives, but they admit it is likely to take another 12 months to reach the whole country.

Changing face of shopping

Van drivers struggle to cope with parcels surge KADHIM SHUBBER AND JOEL LEWIN

Christmas deliveries are descending into chaos, with retailers admitting to problems getting packages to customers on time and Yodel, one of the UK’s leading delivery services, suspending collections from retailers. Yodel, which counts among its clients leading retailers such as Tesco and Amazon, said delivery of some parcels would be delayed by up to 72 hours and its sorting centres would not be accepting more parcels until Saturday. Tesco said some of its Tesco Direct click-and-collect orders had been delayed and that it was using its own delivery vans where possible to help deliver orders on time. Dick Stead, Yodel’s executive chairman, said in a statement sent to Yodel’s clients: “This is not a decision we have taken lightly but one that we have had to take to protect service levels.” Logistics companies have struggled to cope with an unprecedented surge in online deliveries that has been compounded by a driver shortage of 60,000, according to the Road Haulage Association. Yodel said its volumes were 26 per cent higher than its clients had forecast. On “Black Friday”, at the end of last month, online spending smashed expectations by 50 per cent, with roughly £810m spent in the UK, according to estimates by Experian and the Interactive Media in Retail Group. A further £666m was spent on Monday this week, a day that has since been dubbed “Manic Monday”. IMRG has forecast a record 205m home deliveries for November and December this year, up from 177m last year. Retailers have struggled to deliver products on time. Marks and Spencer was forced to double its delivery times and suspend nextday deliveries after its Leicestershire distribution centre struggled to cope with the demand. Amazon faced difficulties fulfilling customer orders around Black Friday, admitting “as a result of the unprecedented number of orders the delivery dates we promised was a bit longer than usual”. The company said orders were now being processed and delivered as normal. Currys, the electricals retailer, said that it had suspended next-day delivery for a week until December 10 as it worked through Black Friday orders, but the company said it did not use Yodel.

PILITA CLARK — LIMA

Britain’s energy secretary has called for tougher rules to be applied to companies holding “risky” fossil fuel assets that could plunge in value because of global action to tackle climate change. Ed Davey’s move makes him one of the first senior politicians to weigh into a growing debate on the future of oil, gas and coal companies as governments work on sealing a global climate deal in Paris next year. “We’re seeing a move from a carbon economy to a climate economy,” Mr Davey said on the sidelines of UN talks in Lima shaping the Paris agreement. If the pact is strong enough to stop global temperatures rising more than 2C from pre-industrial times — a limit governments have already agreed should not be breached — it could require a huge shift away from fossil fuels to alternative sources of energy. Mr Davey said some analysts estimated this could lead to as much as $28tn in lost revenues for the global fossil fuel industry over the next two decades. That has prompted calls from some investors for asset managers, insurers, banks and other financial groups to be more open about the size of their fossil fuel investments, a move Mr Davey said he backed. “I think there is a case for making it mandatory,” he said. “People need to know the risks.” The minister’s move follows the Bank of England’s decision to examine the risks fossil fuel companies pose to financial stability, and a call by Lord Browne, former BP chief executive, for such businesses to stop ignoring “the existential threat” of climate change. Roman Catholic bishops from around

‘We’re seeing a move from a carbon economy to a climate economy’ Ed Davey, energy secretary

Shoppers look for Christmas presents in Oxford Street, London. High streets have seen fewer long-term empty stores — Charlie Bibby

Out-of-town retail parks succumb to web purchases CLAER BARRETT

The rise of internet shopping has hurt out-of-town retail parks more than the high street, research has found. Retail parks have the highest percentage of premises vacant for three years or more, and many may never be reoccupied, according to an analysis of more than 1,500 UK shopping locations by the Local Data Company. Its findings come as Britons were ranked the biggest internet shoppers in the world. “There is increasing polarisation between the retail parks that are doing nicely and the dogs,” said Matthew Hopkinson, director of Local Data Company. “Vacant shops on out-of-town retail parks have been caused by the decline of retailers selling electrical goods, bulky white goods, DIY and home entertainment,” he said. The rise of online shopping had left these retailers “caught like rabbits in the headlights”. Over the past three years, many retail park stalwarts including Comet, MFI and Best Buy have disappeared. Others including Homebase, HMV and Game

have closed many stores, and out-oftown supermarkets have suffered as online grocery shopping increases. Smaller retail parks have found it much harder to replace vacating retailers, Mr Hopkinson said, noting the “contagious” effects of boarded-up units. “The resulting drop in shopper numbers has a knock-on effect on the remaining retailers when leases come up for renewal,” he said. “Retailers stuck on these parks will not be spending money refitting their stores, making them a less attractive destination for consumers. At some stage, you are going to reach the point of no return.” Large parks anchored by high street retailers offering click-and-collect services, fashion brands and places to eat and drink were the least likely to suffer, the research found. Mr Hopkinson also noted the emergence of “value retail parks” where new names including B&M, Poundland and Brantano have created a “destination for bargain hunting”. Other new occupants include “at home” brands from the likes of John Lewis, Next and Marks and Spencer, but

Mr Hopkinson noted these were competing for business with furniture retailers such as Dreams, which went into administration last year. Shops on retail parks that have been boarded up for three years or more account for just over 22 per cent of all vacancies, the research found, compared with 18.5 per cent of high street vacancies. Retail parks in the West Midlands

22%

1,500

Vacant shops on retail parks boarded up for three years

Number of locations checked by Local Data Company

were the most blighted — almost a third of units standing empty have been unoccupied for three years or more — but retail parks in the southeast were also affected. “Here, competition from large shopping centres such as Westfield is also a factor,” he said. Andrew Jones, chief executive of LondonMetric, which owns a string of retail parks and distribution centres, said that

landlords who harnessed the power of the internet would win through. “We believe that click and collect will benefit the out-of-town retail park because of its convenience,” he said. “Retailers are already having problems with internet delivery this Christmas. Click and collect gives you near-instant gratification, and unlike the high street you can park outside at surface level, and it’s free,” he added. On high streets, the LDC research showed that shops lying empty for three years or longer were likely to be clustered in the same location, forming “retail black spots”. Skelmersdale in Lancashire and Newport in Wales were the worst-hit high streets in the country, each with about three-quarters of vacant shops having been empty for three years or more. “Some councils and landlords are experimenting with pop-up shops to try and fend this off, but ultimately, it comes down to replanning the town centre and putting the successful retailers in the centre and alternative uses such as residential on the periphery,” Mr Hopkinson added.

the world added their voice to the issue this week, calling for “an end to the fossil fuel era” and the phasing in of “100 per cent renewables”. Mr Davey said he was not planning any legislation but had written to Mark Carney, the BoE’s governor, asking for a meeting to discuss the issue. “There must be a case for ensuring that investors, be they pensioners or be they global investors, understand exactly what they’re investing in,” Mr Davey said. “I think we need to look at rules on information, rules on disclosure, because it’s all about transparency for investors.” Mr Davey’s call is unlikely to please companies such as Shell and ExxonMobil, which have both issued lengthy rebuttals of the idea that their oil and gas assets could be stranded by stronger climate policies. The companies argue long-term energy demand is going to ensure a market for their products for many decades, and renewable energy sources are not likely to be a viable alternative for some time. The idea that fossil fuels present a risk to investors first emerged from research conducted by a small London thinktank called Carbon Tracker nearly three years ago. That work led to a grassroots campaign for investors to sell out of fossil fuel companies completely. The heirs to the Rockefeller family oil fortune agreed to divest from oil and coal this year, while California’s Stanford University has announced that it is selling its shares in coal mining companies.

Devolution

Welsh assembly to be responsible for raising a fifth of what it spends within next five years JOHN MURRAY BROWN

The Wales bill, which passed its last hurdle in the Commons on Wednesday, envisages that by 2020 Cardiff will be responsible for raising 20 per cent of what it spends. Stamp duty land tax, landfill tax and an aggregates levy — a charge on sand, gravel and rock that is dug or dredged — are already due to be taken over by the Welsh assembly in 2018. Cardiff will also be given powers, subject to a referendum, to vary income tax by 10p in the pound. Figures published with last week’s Autumn Statement predicted these four taxes would raise about £2.8bn by 2019-20.

Wales receives an annual block grant from London of £15bn to pay for public services. Gerry Holtham, an economist and the author of a report for the Welsh government on how to finance a devolved administration, said the country’s politicians were nervous about taking on income tax responsibilities. One reason was “they do not have much confidence they can expand the tax base”. “Therefore there is a risk that if something goes wrong with the Welsh economy, they would be worse off than sticking to the block grant,” he said. Figures published last year by HM Revenues & Customs, which for the first time gave separate details of the taxes raised in Wales, Scotland and Northern

Ireland, calculated that revenues in Wales were £5,400 per person in 2012-13, 26 per cent lower than the UK average of £7,300. Income tax in Wales will amount to £1.9bn in 2014-15, rising to £2.5bn by 2020, according to projections from the Office for Budget Responsibility, the government’s fiscal watchdog. Stamp duty would by then be worth £246m, landfill tax £53m and the aggregates levy £27m. Tax devolution is supported by the Conservative party, though it originally opposed Welsh self rule. Plaid Cymru, the nationalist party, is also in favour — as a stepping stone to further devolution and its ultimate goal of independence.

Politicians in Cardiff ‘do not have much confidence they can expand the tax base’

Labour, in power continuously since devolution in 1999, originally complained the policy was a “Tory trap” because, once tax was devolved, London would then be able to say Cardiff had no reason to complain about unfair funding. Labour thinks the budget settlement favours Scotland unfairly and, by Welsh government estimates, underfunds Wales by £300m a year. However, in recent weeks Carwyn Jones, the first minister, appears to have changed his tune, perhaps anxious not to be out of step with rising interest in devolution across the UK. Polling suggests Welsh opinion is evenly split on whether to take on income tax powers. Mr Holtham favours devolution. He

says a cut in the top rate of income tax could encourage people to move to Wales, or to declare their Welsh home as their main residence for tax purposes. “You have to remember 15 per cent of the English population lives within 50 miles of the Welsh border.” He argued that a short-term fall in yield caused by lowering the top rate could be offset by making changes to council tax, which brings in 10 times as much as income tax. Video Austerity hits Wales hard. Daniel Garrahan reports from the valleys and Cardiff www.ft.com/wales

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INTERNATIONAL GLOBAL INSIGHT

Nuclear deal

Russia and India renew strained ties Putin turns focus from west to stronger links with emerging markets VICTOR MALLET — NEW DELHI

Russia and India agreed yesterday to renew their frayed relationships in energy, defence and trade, with leaders Vladimir Putin and Narendra Modi promising construction of at least 10 more Russian nuclear power reactors in India over the next two decades. “Today, we have outlined an ambitious vision for nuclear energy,” Mr Modi announced at a joint news conference with Mr Putin in New Delhi. At a time of increasing economic isolation of Russia by the west, Mr Putin has been keen to strengthen relationships with emerging market trading

partners. India, for its part, has neither criticised nor supported Russia’s annexation of Crimea and its involvement in eastern Ukraine. The recently commissioned 1,000megawatt first unit of the Kudankulam Nuclear Power Plant in south India, built by Russia, has already increased Indian nuclear electricity output by a fifth. Another reactor is due to begin operating next year, with two more to follow. In a tacit acknowledgment of the cost overruns and long delays hampering previous projects, the agreement commits India to finding a site in addition to Kudankulam for building more reactors. The agreement says both sides will seek “to minimise the total cost and time of construction of nuclear power units”. During the cold war, Russia was con-

sidered a loyal friend of India and became its main arms supplier, but in recent years New Delhi has sought to broaden its range of alliances and moved closer to the US and its Asia-Pacific allies Japan and Australia. Mr Modi struck up an apparently warm relationship with President Barack Obama on his visit to Washington this year and will host him at India’s Republic Day ceremonies in January. The US, in turn, is eager to boost trade and defence ties with India, and last year delivered more weapons to India than any other supplier. According to Samir Patil, a national security expert at Indian think-tank Gateway House, delays in Russian arms supplies, defective spare parts and arguments over cost have led to “troubled defence ties” between India and Russia since the cold war ended and have

Vladimir Putin with Narendra Modi in New Delhi yesterday

opened the door to US and Israeli manufacturers. Mr Modi nevertheless said “Russia will remain our most important defence partner” and announced that Russia had offered full manufacture in India of one its helicopter models. Among the 20 documents signed during Mr Putin’s one-day visit to India were several relating to co-operation in oil and gas, including one envisaging a joint study for a Russia-India pipeline and another between Rosneft and Essar for the supply of Russian oil to Indian refineries over the next 10 years. Mr Modi described collaboration in oil and gas as “disappointing”. Mr Putin, in an earlier interview with news agency Press Trust of India, said bilateral trade between the two countries fell by a tenth last year to $10bn. “It is important to reverse this trend,” he said.

Venezuela. Public anger

Socialism’s guardians weary of corruption

Economic reform has stalled, say critics, because it threatens powerful internal interests ANDRES SCHIPANI — CARACAS JOHN PAUL RATHBONE — LONDON

The mural above Ana Caona’s head in the gritty Caracas slum known as 23rd of January is no ordinary depiction of the Last Supper. Instead of disciples, the figures flanking Jesus Christ are rebel figures such as Mao, Lenin and Hugo Chávez, the former president. Yet despite these symbols of revolutionary commitment, Ms Caona is disenchanted with Venezuela’s socialist government as it grapples with falling oil prices and an economy ravaged by inflation, shortages and corruption. “There are internecine fights, micropowers within the revolution, everyone defending their interests,” complains this member of one of Venezuela’s militias, called colectivos, which consider themselves keepers of socialism’s sacred flame and also sometimes act as auxiliary state security forces. Ms Caona illuminates a growing public disaffection with President Nicolás Maduro’s government as oil prices have slid 40 per cent since June. She says her

colectivo has taken to delivering food staples around the neighbourhood so that supplies are not “mishandled by corrupt forces”. Her comment about “corrupt forces” also suggests why Mr Maduro continues to stall on the reforms the Opec country needs to shepherd itself through the oil price collapse and stave off default on its hard currency bonds, the highest-yielding among sovereign borrowers. “A serious economic adjustment needs a sincere economy . . . but for the government’s power groups the possibility of becoming millionaires is just too enormous,” says Mercedes de Freitas, head of the local chapter of Transparency International, which ranks Venezuela near the bottom of its corruption index. Removing a domestic petrol subsidy, as Indonesia has done, would save the government $12bn a year, economists estimate, equivalent to 6 per cent of economic output or a third of the fiscal deficit. But that would counter the interests of government insiders, such as senior military officers who, analysts say, continue to support the government and for whom cheap petrol allegedly fuels a contraband trade worth $4bn a year. “There are tremendous arbitrage opportunities,” says Felipe Pérez Martí, planning minister under Mr Chávez,

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who died last year. Another mooted reform is to dismantle the fixed exchange rate regime and let the bolivar currency float from 6.3 to the dollar to near the black market rate of over 170. That would translate into local currency gains from Venezuela’s dollar-denominated oil exports and close the fiscal deficit, currently financed by printing money. Yet devaluing could spark “a popular explosion”, says Ms Caona. It would also run foul of government insiders who supposedly enjoy access to subsidised foreign exchange. “Control of the economy has been taken by those defending their personal interests, their interest in capital accumulation,” says Nicmer Evans of Socialist Tide, a leftist group that criticises the government for self-enrichment and abandoning revolutionary values. Meanwhile, the economy worsens. The central bank estimates a minimum oil price of $117 a barrel is needed to supply sufficient hard currency to meet import and debt servicing needs. But the price of Venezuelan oil, which accounts for 96 per cent of export earnings, has plummeted to around $62 a barrel. To tide the country over, Mr Maduro has

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Relief felt in western capitals as Qatar comes in from the cold

Q

atar has paid a heavy price for its controversial pro-Islamist policy over the past year. Dispensing with the pretence of brotherly relations, three of its hawkish neighbours, led by Saudi Arabia, withdrew their ambassadors from Doha in May and put the Qatari emir on notice. Months of heated rhetoric and leaks that went to the point of suggesting an invasion of Qatar followed. And then, in mid-November, Gulf rulers kissed and made up. “Truce Declared”, “New Page Opened”, splashed regional newspapers, with pictures of Sheikh Tamim bin Hamad al-Thani, the emir, planting a kiss on the forehead of the Saudi ruler in Riyadh. Soon after, Sheikh Mohammed bin Zayed, the Abu Dhabi crown prince, who was said to be even more angry with Qatar than his Saudi colleagues, arrived unexpectedly in Doha, where he and the emir walked hand in hand. This week, the reconciliation was consummated with Doha’s hosting of the summit of Gulf Co-operation Council, a meeting of the regional grouping that, just a few weeks ago, looked unlikely to happen. The relief at the end of this particular cold war in the Gulf (a more dangerous one, between Saudi Arabia and Iran, shows no sign of abating) was felt in western capitals, where the squabbling of the oil-rich states seemed increasingly petty in the face of the common threats they faced. The Gulf discord was over Qatar’s support for the Egyptbased Muslim Brotherhood, which was ousted from power last year in a military coup embraced by Saudi Arabia and the United Arab Emirates. Riyadh and Abu Dhabi have been determined to put an end to the spread of One test will be in Islamist politics elsewhere in the Arab world Libya, where the and, in effect, were Qataris and Emiratis demanding that Qatar join them. have been backing Sheikh Tamim, who different sides had just taken the reins from his father and was still consolidating his power, resisted the pressure. After all, rattling neighbours with an independent foreign policy has always been Qatar’s way of raising its profile. The spat did not subside. More pressing crises, meanwhile, confronted Gulf rulers: the rise of the Islamic State of Iraq and the Levant, known as Isis, the oil price fall and the growing influence of Iran in Iraq. “The word from the US was that there was a new enemy and that this [dispute] was not healthy,” says Andrew Hammond, a Qatar expert. “The Saudis realised that it was better to paper over the cracks now, and they impressed it upon the Emiratis.” Qatarofferedsomecompromises.SeveralseniorEgyptian Muslim Brotherhood leaders left Qatar and one of the group’s spiritual leaders, Sheikh Yusuf al-Qaradawi, no longer appears on a weekly show on the Qatari-owned Al Jazeera,althoughhestillspeakstotheprintmediainDoha. Hassan Hassan, a UAE-based analyst familiar with the details of the agreement struck last month, says Qatar has pledged non-intervention in other Gulf states’ affairs — Al Jazeera, for example, is expected to refrain from attacking other Gulf states but not end its sympathetic slant towards the Brotherhood. “Qatar always wanted to buy time and stall and play a waiting game, and the other Gulf states wanted to up the game and tell Qatar, we’re serious, but not get to the point of imposing sanctions,” he says. Across the Gulf, however, scepticism abounds over the depth of reconciliation and how long it will last. One test will be in Libya, where the Qataris and Emiratis have been backing different sides in a widening civil war. Tarik Yousef, a Doha-based regional expert, says a compromise might have been reached on Libya as part of the reconciliation. Of greater concern to him is that the rift, particularly between Qatar and the UAE, was this time deep and personal and mobilised the public. “Tensions extended beyond the leadership into the community level, an unprecedented occurrence that will require more than high-level visits to undo,” he says. Such visits, he adds, will not be enough to “reverse the ill will”. [email protected]

Falling oil price fuels jump in retail sales ahead of Fed meeting The falling oil price is already encouraging US consumers to spend as retail sales raced ahead in November.

FT Weekend brings art and culture to life through intelligent and thought-provoking writing. Our editors bring the best of the world to you – from news and interviews, to extensive coverage of property, gardens, books, style, travel and arts. Together with the award-winning How to Spend It magazine, there is something to delight all readers.

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ordered a 20 per cut in government spending and sought alternative sources of financing, including fresh loans from China and a securitisation of debts owed by Caribbean allies such as Jamaica. Spreads on Venezuelan debt have blown out to over 2,000 basis points over US Treasuries — comparable to Russian spreads before its 1998 default. Mr Maduro, whose approval rating has fallen to 25 per cent, according to local pollster Datanalisis, has blamed unnamed interest groups and the opposition for problems such as 60 per cent inflation and the world’s second-highest murder rate. Last week, the government indicted Maria Corina Machado, a former congresswoman, for participating in an alleged assassination plot against Mr Maduro. On Wednesday, the US Congress voted to sanction Venezuelan officials for alleged human rights abuses. Yet Mr Maduro’s real problem may be that his ability to manage the country is being compromised by those around him and dwindling support in his traditional power bases. That includes among some of the more unpredictable colectivos, which showed their power in October when almost 260 groups refused government orders to disarm, and forced the interior minister to quit.

Roula Khalaf

US economy

ROBIN HARDING — WASHINGTON

Read beyond the expected

A boy passes a Last Supper mural in Caracas showing Chávez third from right. President Nicolás Maduro, below, is under pressure

MIDDLE EAST

Store and restaurant sales were up by 0.7 per cent compared with October and 5.1 per cent on a year ago, in a sign that faster jobs growth and the rapid drop in petrol prices are boosting consumption. The bump in retail sales is another sign of strength in the world’s largest economy, with the crucial holiday shopping season under way, and the US Federal Reserve meeting to set monetary policy next week. With the oil price still in freefall, down by almost $20 a barrel since the start of November, it is further evidence that US consumption will be strong enough to offset weakness elsewhere in the global economy. “The US is the world’s second-largest consumer of energy, after China, and the slump in the global oil price is already having a noticeable impact on its economy,” said Joseph Lake at the Economist Intelligence Unit. “It should provide a considerable boost to consumer spending next year,

when we expect it to help drive the fastestrateofeconomicgrowthforadecade.” If the oil price stays at around current levels next year, then consumers will have $100bn extra left in their wallets. Ted Wieseman at Morgan Stanley in New York said it was a “very positive

Central banks Norway and Russia move on interest rates Sliding crude prices have forced the central banks of two oil-producing countries to step in and support their economies. The Norwegian central bank cut interest rates to boost growth just as the Bank of Russia raised rates to halt a surge in inflation. Norges Bank has reduced its rate by 25 basis points to 1.25 per cent, a level reached only once before, in 2009 after the financial crisis. Oystein Olsen, the central bank governor, justified the cut by referring to “the outlook for the Norwegian economy [being] notably weaker than

report, confirming broadly based upside in discretionary spending moving into thekeyholidayshoppingperiod”. Excluding car sales, the pace of growth was a little slower, at 0.5 per cent over the previous month. Sales at petrol stations were down by 1.6 per cent, envisaged earlier” amid the sharp falls in oil prices. The Bank of Russia raised the benchmark interest rate by 1 percentage point to 10.5 per cent. This latest move brings the cumulative rate increase to 5 percentage points since the beginning of the year. The rate rise comes after inflation hit 9.5 per cent at the end of last week. The Russian central bank forecasts inflation will increase further, to 10 per cent in the first quarter of 2015. But the move failed to stop the fall of the rouble, which hit a record low of 55.47 to the dollar immediately after the rate rise. The Russian currency has lost 40 per cent of its value against the dollar since the start of the year. Richard Milne and Kathrin Hille

showing the direct effect of falling oil prices. The numbers are likely to boost further the Fed’s confidence in the growth outlook for 2015 and strengthen its confidence that interest rates will need to rise by the summer. The recovery of US households was also visible in new flow of funds data from the Fed, which showed consumer credit growing at a 6.4 per cent annualised pace in the third quarter. Overall growth in household credit was slower, at 2.7 per cent, reflecting tight lending conditions in the mortgage market. The net worth of US households dipped slightly in the quarter, from $81.49tn to $81.35tn, as a fall in equity values outweighed the increased value of their homes. Household wealth has recovered strongly since the recession, another factor boosting consumption, but it is unevenly distributed with rich households getting the most benefit. The even distribution of gains from falling oil prices, by contrast, is why they have such a strong effect on consumption. Gillian Tett page 13

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INTERNATIONAL

Juncker the tireless broker for low-tax Luxembourg Commission president was strategic mastermind in Grand Duchy journey from clapped-out steelmaker to ecommerce hub ALEX BARKER AND VANESSA HOULDER

Jean-Claude Juncker had a mischievous look. It was shortly before the 2004 election and Luxembourg’s then premier just could not keep the secret that his tiny Grand Duchy was reeling in another big corporate catch. AOL and Amazon were already moving to Luxembourg amid a flurry of interest from US internet companies. Jeannot Krecké, a rival politician, recalls Mr Juncker furtively hinting at more to come. After a pause, Mr Juncker cracked: “I like apples.” In short order Apple’s iTunes division set up its European home in Luxembourg and was then joined by Microsoft, Cisco and eBay, a veritable tech surge. It was hailed as another triumph of economic reinvention for one of Europe’s smallest sovereign enclaves. Yet a decade on, the strategy has put its mastermind under political fire just as Mr Juncker reaches his career zenith as European Commission president. The EU is investigating whether sweetheart tax deals that Luxembourg granted to two foreign companies — Amazon and Fiat — were too sweet. Thousands of pages of leaked Luxembourg tax rulings have revealed how hundreds of others that moved to the Grand Duchy also managed to pay negligible taxes. Even some allies fear Mr Juncker’s role in his nation’s unlikely rise to the top of Europe’s per capita rich list — a 40-year journey from clappedout steel producer to booming financial centre, satellite pioneer and ecommerce hub — could prove his undoing. During the boom, Mr Juncker was never shy to claim credit. “I have personally lobbied for these companies to choose Luxembourg as a European base and I should neither feel ashamed, nor need to justify it,” he told one Revue interviewer in 2004. To Le Quotidien in the same year he boasted: “We attracted AOL, Amazon, Microsoft. Some think that it fell in our laps. There were 200 hours of negotiations with AOL. You must have a taste for hard work and get stuck in.” Those meeting him remember an accommodating, humorous and accessible leader. “We met [Juncker] once or twice,” Robert Comfort, Amazon’s head of tax, recalled in a candid interview with d’Lëtzebuerger Land detailing the 2003 talks that brought the online retailer to Luxembourg . “[Juncker’s] message was: ‘If you encounter a problem that you think you cannot solve, come see me. I’ll try to help you.’” A year before retiring from Amazon in 2012, Mr Comfort was made Luxembourg’s honorary consul to the US state of Washington. He did not respond to Financial Times requests to comment. For his part, Mr Juncker remains defiant and unapologetic. Speaking to the FT last month, he said accusations of impropriety were “disgusting questions”. So far no wrongdoing has been proved. Luxembourg was far from alone in courting multinationals with an appealing tax regime, and it has never been short of envious rivals, including Ireland, the Netherlands, Belgium, Britain, Switzerland and even Delaware in the US. “They are all criminals if we are criminals,” Mr Juncker once claimed. But on some fronts Luxembourg stands out. In 2000 US companies — excluding banks — reported $3.4bn in profits from their Luxembourg-based d operations, according to US commercee department data. Ten years later, thatt

Rulings How sweetheart deals made charms irresistible Luxembourg’s controversial system of “rulings” — letters from the tax authority confirming how companies would be taxed — dates back to the early 1990s, soon after Jean-Claude Juncker became finance minister. It was sparked by efforts from the big accountancy and law firms to devise a low-tax structure using a new type of holding company, known by its French acronym Soparfi, to reap the benefits of international tax treaties. The new structures were stuffed with large amounts of “hybrid” debt — considered debt in Luxembourg but equity elsewhere. Rulings were needed to give companies the confidence that the arrangement was acceptable to tax inspectors. The Grand Duchy was inspired by the Netherlands, renowned as a holding company magnet. As well as rulings, Luxembourg copied a Dutch capital gains tax exemption. That enhanced the Grand Duchy’s charms, including a tax break on interest introduced to capture the Eurobond market in the 1970s. Luxembourg was well placed for the ensuing explosion in foreign tax planning by US multinationals at the close of the millennium. Such tax planning became even easier in 2002 when Mr Juncker, as prime minister, extended corporate tax breaks to partnerships. That opened up new ways for companies to play one country off another and pay negligible tax. The result was a proliferation of sprawling structures, potentially across several business-friendly countries.

Microsoft’s headquarters in Luxembourg. Below, hereditary Grand Duke Guillaume, fifth left, and then economy minister Jeannot Krecké, seventh left, meet eBay tax officials at its California head office in 2006 Emmanuel Dunand/AFP

number had hit $94.1bn. Behind the numbers was Mr Juncker’s obsession with economic diversification. In the 1970s, the Grand Duchy pivoted from steel to finance through shrewd tax breaks and nippy regulatory footwork. Since the 1930s Luxembourg has cannily deployed its rights to radio frequency and later satellites to host Europe’s broadcasters, from RTL to Radio Luxembourg. For Mr Juncker the dangers of overreliance were personal and visceral: as a young minister he forced his steelworker father into early retirement as Luxembourg’s industry crumbled. To him, the internet age posed both threat and opp opportunity. y “I said to myself. . . we

cannot replace one dependence [steel] with another [finance],” he told the FT. “We tried with all means — but not with illegal means — to diversify our economy against the strong opposition of some of our neighbouring countries.” Jean-Paul Zens, Luxembourg’s top tech sector official for almost two decades, says it was a “happy coincidence” that new EU VAT rules emerged by 2003, allowing exemptions for electronic services. It caught the eye of Rick Minor, an AOL executive, who established the template for using Luxembourg as a European ecommerce hub. What followed was “possibly the biggest influx of Americans to Luxembourg since the second world war”, he said. Once the potential became clear, LuxO emb mbourg hit the road. While Mr Juncker meet the likes of Amazon’s Jeff Bezos at hom me, his ministers were busy prospeccting the US west coast, visiting Ap pple, Yahoo, eBay and Microsoft, am mong others. From 2003 to 2006 their traade missions were annual or twice yeaarly, sometimes with royalty in tow. One picture shows a Luxembourg O miinister and the hereditary Grand Duke Gu uillaume at eBay’s head office. Smiling beeside the heir to the throne: eBay’s ch hief finance officer, head of tax, viceprresident for tax, and a relatively lowly diirector for indirect taxation. While many countries deploy royalty to drum m up p trade, they rarely rub shoulders with a company’s tax practice.

“If you are sitting in Silicon Valley or Seattle or Vancouver and not knowing a lot about Luxembourg, it is more difficult to make a decision about Luxembourg,” said Mr Zens, a regular on the US trips. The Grand Duchy had to do more to make an impact than rivals such as Ireland, which had cultural links to the US. Former ministers and ecommerce executives insist tax was just one of many factors. Talks were as much over regulation, logistics — even school places. Over lunch with Mr Krecké, eBay’s Meg Whitman said she ruled out Luxembourg because of some weaknesses in IT infrastructure — prompting an immediate promise of investment.

US companies in Luxembourg Net income ($bn)

Employees

100

15000

80 10000

60 40

5000

20 0

0 1995 2000

05

10

Source: US Department of Commerce

“We are not tax consultants. We are focused on industry,” said Mr Krecké, who as economy minister led some US trade missions. Indeed, Luxembourg’s great strength was its agility. Mr Juncker oversaw concerted efforts to attract tech players — from changing retail laws, to improving internet connections, to near constant refinements to the tax code, which Luxembourg would, on request, readily interpret for multinationals. “As we say in Luxembourg: ‘Schnellboot gegen Tank (the speedboat takes on the tank)’,” Mr Juncker told the FT as he prepared for the tech boom. In regulatory terms, Luxembourg was a small village where the door of officialdom was always open. Facing an external regulatory assault, Luxembourg is shoring up its defences. Advance tax rulings — so vital to multinationals worried about potential liabilities — are being overhauled to make them harder to secure and more legally sound. Mr Juncker is urging the Grand Duchy to begin sharing them with other governments automatically. “The flexibility and case-by-case discussions with the tax administration we have known in the past are now finished,” Olivier Van Ermengem of Linklaters told clients. “Rulings are now granted on the basis of analysis of the law and the facts . . . We will have to get used to the fact that when you apply for a ruling, it may end up on the desk of a tax inspector anywhere in the world.”

Climate talks

CIA torture

Kerry on a mission as China digs its heels in

Brennan admits error of ‘abhorrent’ methods

PILITA CLARK — LIMA

John Kerry has made a personal visit to stalled UN climate talks in Lima and warned governments not to get bogged down in “dysfunctional” debates over a global climate deal. Negotiators have struggled to resolve rifts between China and other countries on the shape of a global deal planned for next year. “The whole thing could derail at this stage,” one delegate said as the two-week talks between 190 nations neared their scheduled close today with no final agreement in sight. Other officials said they were confident the talks would not collapse. But several struggled to hide their irritation at what they said was an unexpectedly aggressive negotiating stance by China after its joint announcement with the US last month about how it planned to tackle greenhouse gas emissions. The move by the world’s two largest emitters had spurred a mood of guarded optimism at the start of the Lima talks, which are intended to decide what information each country will put in its pledge for the global deal due to be sealed in Paris next December. China’s negotiators had created unex-

pected problems for the talks, said Tony de Brum, foreign minister of the Marshall Islands, one of several small island states facing an uncertain future because of rising sea levels. “I thought they wouldn’t be as stern as they used to be,” he said. “I don’t know if it’s 48-hour posturing or not but I hope we can resolve it.” European nations and many smaller

‘. . . an unwillingness to disclose information is a bedrock of the Chinese government’ developing countries want the pledges to contain as much data as possible about past and planned emission levels. This would allow them to be analysed to assess whether they amount to enough action to stop global temperatures warming to dangerous levels. China, Saudi Arabia and others in a negotiating body known as the Like Minded Group have argued that only wealthy developed countries should be subject to such rigorous requirements and scrutiny. Developing countries

should be free to volunteer data as they see fit, they say, in a move that revives a divide between rich and poorer nations that has long blocked progress. This round of negotiations is attempting to produce the first treaty in 20 years of climate talks that will require both developed and developing nations to cut their emissions. Previously only wealthy countries have been required to act. But the Lima talks underline the difficulties of adapting to the new path. China’s position was not surprising, given its history of being an extraordinarily tough negotiator at climate talks, said Paul Bledsoe, a former White House climate adviser in the Clinton administration. In addition, “an unwillingness to disclose information is a bedrock of the Chinese government”, he said. “They are unbelievably secretive, so it should not be that surprising that the notion they are going to be subjected to invasive verification requirements is alarming to them.” The slow pace of the talks has begun to frustrate negotiators, who recall that the inability to resolve differences was one reason the last big effort to seal an international treaty, in Copenhagen in 2009, ended in failure.

MEGAN MURPHY — WASHINGTON

The director of the Central Intelligence Agency admitted that it had made serious mistakes in how it ran a programme to interrogate terrorist suspects after the September 11 2001 attacks on the US, saying that some of the methods used were “abhorrent” and “should be repudiated by all”. In a rare press conference, John Brennan defended the agency’s integrity and mission in response to the release of a scathing report on the programme, which revealed that the methods used on detainees were far more brutal than previously known and which concluded that no useful intelligence had been obtained by torture. Mr Brennan acknowledged yesterday that the agency was insufficiently prepared to operate a large-scale detention programme at the time it was set up, and said that some CIA employees used techniques that were not authorised. However, he defended the vast majority of staff involved in the Bush-era programme as “patriots” who were trying to do their job in difficult circumstances, at a time when the nation was still healing from 9/11 and was bracing itself for

another possible wave of deadly attacks. The report, released on Tuesday by the Senate intelligence committee, catalogues in grisly detail what terrorist suspects were subjected to in so-called “black sites” around the world, including repeated waterboarding, rectal feeding and being held in small “confinement boxes” for days on end. Employees used “techniques that had not been authorised, were abhorrent, John Brennan said most staff involved were ‘patriots’ trying to do their job in difficult circumstances

and rightly should be repudiated by all”, Mr Brennan said. “We fell short when it came to holding some officers accountable for their mistakes.” Mr Brennan has retained the support of the White House in the wake of the report’s release amid a partisan political fight over its accuracy and the timing of its release, with some senior military and intelligence officials warning it could spark a violent backlash. President Barack Obama, who

stopped the use of the tactics on his second day in office, has trod carefully on the topic, refusing to say whether he believed the methods yielded important intelligence in the hunt for Osama bin Laden and other high-level targets. “John Brennan is a dedicated professional who has dedicated his time in public service to protecting the United States of America,” Josh Earnest, the White House spokesman, said. The CIA continues to dispute one of the report’s core conclusions: that brutal “enhanced interrogation techniques” did not provide any actionable intelligence. Significantly, however, Mr Brennan conceded that the agency could never know whether it was those techniques that produced actionable information or whether similar intelligence couldhave beengleanedbyothermeans. The 525-page report summarises the most exhaustive investigation yet into the use of torture by the CIA, which has long been known but only grudgingly acknowledged by both the Bush and Obama administrations. The agency’s use of torture was “a stain on our values and our history”, said Dianne Feinstein, the California Democrat who heads the committee.

Friday 12 December 2014

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FINANCIAL TIMES

INTERNATIONAL FT seasonal appeal

Charity steps up assistance to South Sudan’s 2m displaced How you can help

International Rescue Committee has saved tens of thousands of lives KATRINA MANSON — JUBA

Nomi Ayour Malek had travelled to South Sudan’s capital, Juba, to buy clothes as Christmas presents for her children when fighting broke out last year. As the violence spread, she became trapped by the sudden onset of civil war in the world’s newest nation. As a member of the country’s dominant Dinka ethnic group, she did not dare risk travelling back to her home in Jonglei province, north of Juba, where rebels from the Nuer ethnic community repeatedly attacked and took over the state capital, Bor. “I don’t care for these two tribes,” says Ms Malek, who is still in Juba, living in a camp for 2,600 displaced people, set up in the grounds of a school. The shelters consist of tarpaulin stretched over sticks. Women make up the majority of the camp’s inhabitants; they spend their days washing clothes in plastic vats, cooking, selling charcoal or playing cards in the shade of trees. “We are all the children of South Sudan; let them come together and settle their differences as a family,” says Ms Ayour, mindful that South Sudan spent decades fighting for independence from the Khartoum government, which it won only three years ago. “If there’s peace, I’ll go back [home].” The extent and severity of the fighting, however, as well as fear of ethnic killings, have made it unlikely that Ms Ayour will be able to return home anytime soon. She is just one of nearly 2m people, some 17 per cent of South Sudan’s population, who have been displaced by the violence. While the civil war was triggered by a political fallout between President Salva Kiir, a Dinka, and his sacked deputy, Riek Machar, a Nuer, it has created a humanitarian catastrophe on the ground. Protracted peace talks have so far failed to deliver a lasting deal and heavy fighting could resume with the onset of the dry season early next year. The International Rescue Committee, the humanitarian organisation partnering the Financial Times in this year’s seasonal appeal, has been at the forefront of efforts to bring help to those in South Sudan who need it most. It has got supplies through to tens of thousands of

Refugees play cards in the Juba camp where Nomi Ayour Malek, below, now lives with 2,600 others people who sought refuge by wading into swamplands with only water lilies for food; and monitors shelter and medical care for the thousands of vulnerable people in camps such as the one where Ms Ayour lives. “IRC was one of the earliest, fastest and biggest organisations to reach deep-field locations where need was the highest; there is no question they saved tens of thousands of lives,” says Toby Lanzer, UN chief humanitarian co-ordinator in South Sudan. “At Christmas last year I called [IRC president] David Miliband and said: ‘I need you and I need you here now, big and fast’,” recalls Mr Lanzer, who says IRC is one of the top 20 most effective organisations among 200 currently working in the country. Although it has been active in South Sudan for 25 years, IRC tripled in size this year in its effort to respond to the war. The charity now has more than 1,000 local staff and a budget of $28m, up $10m on last year. In the

12 months since the civil war started, the IRChasreached900,000people. “I’m really proud of the fact that we’ve been able to scale up as much as we did,” says Wendy Taeuber, IRC’s country director for South Sudan. She says IRC reached people in difficult, remote areas by canoe, with many of its staff later emerging undernourished and skinny. Famine, she cautions, “is a much more real possibility in the coming months” because people have sold cows, lost their homesandharvestedonlyameagrecrop. IRC protection officers such as Paul, an ethnic Nuer who did not want to give his full name, search out vulnerable people who need extra assistance. He was recruited from a camp for displaced people at one of many UN bases where he, like 100,000 others, sought refuge. “I move house to house to find children who have no company, pregnant women, lactating mothers, old

Katrina Manson

people, the disabled — four of us make about 30 referrals a week,” he says. The ethnic dimension to the war is a constant source of tension. An IRC report published in November says that both government and opposition forces “have committed extraordinary abuses of civilians, often deliberately targeted along ethnic lines, including mass killings, disappearances, torture and gender-based violence such as rape”. Aid workers in South Sudan were the third most attacked in the world this year after Afghanistan and Syria, with 35 killed. In April, two IRC workers were killed at a health clinic in a UN base. “We hope that donors will continue to support the response,” says Ms Taeuber. “As the conflict continues there’s distrust on all sides. We have to serve people in need wherever they are found.” Appeal online For all stories from the FT’s seasonal appeal and to donate ft.com/seasonalappeal

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FINANCIAL TIMES

Friday 12 December 2014

INTERNATIONAL Federal law

Energy reform

US companies exposed by migration policy

Mexico sets bidding rules for historic oil and gas tender

Move to regularise illegal workers puts businesses at risk of prosecution BARNEY JOPSON — WASHINGTON

Businesses that employ low-skilled immigrants fear President Barack Obama’s immigration policy will expose them to new legal risks by encouraging employees to confess they are working on false documents. Mr Obama is using his executive powers to shield more than 4m unauthorised immigrants from deportation and offer them work permits, a move that highlights the US’s reliance on a black market labour force that accounts for 5 per cent of all workers. The president’s action marks the biggest change to immigration policy in decades and has thrown up legal uncertainties for employers — and immigrants — as unprecedented numbers of people move from illegal to legal status.

Businesses are worried that if a worker tells them they are applying for the president’s programme — and thereby admits he or she is working illegally — they will immediately be breaking a federal law against “knowingly” employing an unauthorised worker. Mr Obama’s executive action has also sparked fury among Republicans. They are plotting ways to block it in the early months of next year when they take control of both chambers of Congress. The corporate concerns are acute in construction, agriculture, food, cleaning and hospitality where low-skilled Hispanic immigrants make up a large proportion of the workforce, said Tamar Jacoby, president of ImmigrationWorks USA, an alliance of small businesses. “What’s likely to happen in many businesses,” she said, “is the man who’s worked for you for 10 years who you think is called Juan is going to come and say: ‘I have the keys to the back office and the combination to the safe and I’m one of your most trusted employees, but

my name’s not Juan, it’s Jose. That social security number I gave you is fake and I’ve been lying to you.’” US Immigration and Customs Enforcement conducts audits of workplaces and penalises or even prosecutes business owners and managers found to

‘It’s a “don’t ask, don’t tell” policy. We’re just taking the documents on face value’ be deliberately employing illegal workers. ICE says many immigrants rely on criminal organisations to obtain authentic-looking documents. The law requires businesses to verify staff have the right to work in the US. Ms Jacoby said most employers “hope and believe” that they are authorised. But fake, borrowed or stolen documents can get people through a process that consists of visual checks of photo

IDs and social security numbers. An electronic system called E-Verify exists but its use is not compulsory. Some employers are reluctant to pose searching questions over documents due to fear of being accused of discrimination. David Fitzpatrick of Labor Law Monitoring, who inspects clothing factories for big outsourcers in Los Angeles, said: “To use a common phrase, it’s a ‘don’t ask, don’t tell’ policy. We’re just taking the documents on face value.” The Pew Research Center says the total size of the unauthorised labour force is 8.1m and 69 per cent of the 4mplus people eligible for work permits under the programme already have jobs. The government will begin accepting applications from them next year. Joe Trauger, vice-president of human resources policy at the National Association of Manufacturers, said: “What do you do when an employee says ‘I need to give you my new legitimate tax ID because what I’ve had is a fake?’ That’s a big problem . . . There’s got to be a proc-

ess or some sort of safe harbour for businesses in that instance.” He said the process would cause problems for companies with “honesty policies” that say employees should be disciplined or fired if they have lied. He also noted the executive action could be reversed by a future president, rendering millions of workers illegal again. The biggest group eligible for the president’s plan are parents of US citizens and legal permanent residents, or green card holders. The administration has not yet issued guidance for employers, but sought to reassure them in 2012 when Mr Obama used his powers to stop the deportation of young people brought to the US illegally as children. It said that if businesses gave workers documentation to verify their presence in the US — and in doing so acknowledged they had been working illegally — that would not be shared with ICE for enforcement purposes “unless there is evidence of egregious violations of criminal statutes or widespread abuses”.

Japan. Economic policy

Weak yen divisive for Abe ahead of election PM hails boon to companies but wider impact of fall hits households and small groups KANA INAGAKI — TOKYO

In an unusual leak during a stump speech, Japanese Prime Minister Shinzo Abe recently revealed Apple’s plan to build its first technology centre in the country, touting it as a result of his weaker yen policy. Apple followed with a timely statement saying the facility in Japan would create “dozens of new jobs”. Days ahead of Sunday’s lower house election, Mr Abe’s message could not be simpler. The cheaper yen, the result of his economic policies known as Abenomics, is good for Japan. The evidence is growing, Mr Abe says, that the yen’s fall — to a seven-year low against the dollar to above Y121 — is bringing production back home and creating jobs. Toshiba, for example, plans to invest more than Y300bn ($2.5bn) in Japan, while Canon is looking to raise its domestic production ratio to 50 per cent from 43 per cent last year. Nissan has decided to manufacture engines in Japan instead of moving to the US, preserving almost 600 jobs, according to Mr Abe. “Even foreign companies are now starting to invest in Japan,” he said on Tuesday as he disclosed Apple’s plans. “A big change is happening.” Looking more closely, though, expanded domestic spending is not always linked to more jobs. Canon has for years aimed to repatriate manufacturing by saving labour costs through automation and the use of robots. The company says it has no plans to change employment levels. Toshiba is also increasing investment at the Yokkaichi memory chip plant in central Japan, but semiconductor facilities are largely automated and any employment impact is likely to be minimal. Nissan, meanwhile, says it has no plans to move its engine production to the US with or without the yen’s fall. Despite the absence of powerful opposition parties, the weak yen debate has been divisive for Mr Abe, pitting the big companies enriched by the currency benefits against smaller groups

A woman walks past election posters in Tokyo yesterday. Some voters have been left struggling from the rising prices of commonly used imported goods Thomas Peter/Reuters

and households left struggling from rising prices of imported items ranging from toilet tissues and milk to beef bowls. Mizuho Bank estimates that a Y10 fall against the dollar boosts the operating profit of listed companies by roughly Y1.7tn while it shaves about Y800bn from the operating profits of privately held businesses that mostly do not export their products. Taro Aso, finance minister, poured more fuel on the fire after reportedly telling voters that companies not profiting from the weaker yen were “either very unlucky or have incompetent managers”. “I’m very upset with Mr Aso,” says Koichi Fujii, chief executive of Sanmaruko Foods, which makes frozen potato croquettes and spring rolls in Hokkaido, northern Japan. “We’re try-

ing so hard to cope with the weaker yen, but he doesn’t seem to get it.” According to Mr Fujii, the costs of materials including beef and flour have risen 5-8 per cent over the past year, while electricity prices have increased 30 per cent and transportation costs 10 per cent. Sanmaruko, a 35-year-old company with Y8.8bn in annual revenue and 500 employees, has cut costs and raised product prices to offset those costs. The company is making some profit, but not enough considering an 11 per cent rise in sales from April to November, Mr Fujii adds. The ruling Liberal Democratic party has promised economic packages to support smaller and medium-sized enterprises hurt by the weaker yen. But analysts say government aid should be aimed at making companies more com-

Looking more closely, expanded domestic spending is not always linked to more jobs

petitive overseas. Sanmaruko, for example, only exports 0.4 per cent of its products. The company wants to raise that ratio to 10 per cent, but with factories only located in Japan, Mr Fujii says the transport costs are too expensive. “It’s just a dream for now,” he says. For Mr Abe, analysts say one game changer that could actually spur more investment at home while mitigating the negative currency impact is cheaper oil, with the price of internationally traded crude falling below $65 for the first time in more than five years. “The speed of the decline in oil prices has been faster than the yen’s fall,” says Kentaro Arita, manager at Mizuho Bank in charge of industry research. “If this trend continues, the merits of cheaper oil will be bigger than the negative impact from the weaker yen.” Male bonding page 13

JUDE WEBBER — MEXICO CITY

Mexico has unveiled long-awaited initial contract terms for the first 14 oil and gas areas it is auctioning in a historic tender round starting next year. They impose a ban on oil majors teaming up to bid and a five-block limit on bids from any company or consortium. “The day has come,” Pedro Joaquín Coldwell, the energy minister, told a packed hall of oil executives, financiers and analysts gathered to hear the auction rules. Mexico expects investment of $1bn per block and future production of more than 80,000 barrels a day from the 14 areas. With production costs of about $20 a barrel in the shallow-water fields, a 40-year history of production in the area and a wealth of seismic data and infrastructure in place, Mexico is confident that the blocks remain attractive despite plunging oil prices. “We must be aware that this bidding round takes place amid volatility in prices in the international crude market, which will oblige companies to be more selective about which countries and areas they invest in,” Mr Joaquín Coldwell said. But he added: “This circumstance will showcase the competitive strengths of Mexico’s round one, which offers a highly diversified portfolio of fields and areas for exploration and extraction, [and] clear and stable investment rules.” The government did not spell out its expected total share of revenues from tax, royalties and other charges. It has said it is hoping for about 75 per cent, but some companies say falling prices will put it under pressure to accept less. “We haven’t set a maximum,” said Miguel Messmacher, the income undersecretary. Winning bidders will be selected based on which offers the best price for the government and which offers the most investment. The deadline for bids is July 15. Mr Messmacher said there might be fewer bidders than expected as a result of the oil price slide, but no sweeteners to the contract terms were planned. Oil majors, defined as those with daily production of 1.6m barrels of oil equivalent, will not be able to make joint bids, echoing a limit imposed by the US in the Gulf of Mexico, said Juan Carlos Zepeda, head of the National Hydrocarbons Commission, which will run the bidding process. The limit will not apply to subsequent tenders for deepwater, extra-heavy oil or unconventional hydrocarbons due to be offered next year because the risks and investment needed there will be greater. Would-be operators will have to demonstrate they have capital of at least $1bn — a requirement that will ensure “we have solvent companies bidding”, Mr Zepeda said. In addition, no company can be part of more than one consortium, and consortiums or individual companies can bid for no more than five of the 14 blocks. The government said the limits, written into the rules at the insistence of Mexico’s antitrust watchdog, were designed to diversify risk and promote competition in order to achieve the primary goal of the reform: an increase in hydrocarbons reserves and production as fast as possible. Pemex, Mexico’s state oil company, has seen output sink to 2.3m barrels per day from a peak of 3.4m a decade ago and Mexico, a manufacturing powerhouse hobbled by high electricity costs, is betting on unlocking its vast reserves in order to foster economic growth.

Humanitarian crisis

Syrian refugees resigned to long stay in Turkish camps while Ankara counts the rising cost ERIKA SOLOMON — NIZIP DAN DOMBEY — ISTANBUL

Leafy vines and potted flowers line the small plastic trailer where Abdullah Jawish has lived for two years. Planted as a symbol of optimism, they belie his despair that he will ever leave his refugee camp and return home “Back home I was a farmer,” he says, smiling. “I try to give my family just a taste of that, to remember.” When they first arrived, the refugees thought their life outside Syria would be temporary. Now the 5,000 living in rows of identical white containers in “Nizip II”, just outside the Turkish city of Nizip, are braced for a long haul. After more than three years of bloodshed that has killed more than 200,000 people and forced 9m to flee their homes, few refugees believe they can

return soon. Many fear they never will. “I wonder if we will end up like the Palestinians — a people without a homeland, for decades,” says Mona, a young mother of four. She fled her home city of Aleppo almost three years ago. The sense of permanence is not just a worry for the 1.6m refugees in Turkey. Ankara is also growing alarmed by the economic and the social costs of its refugee burden. Funds are drying up. Turkey’s humanitarian spending has increased more than fivefold since the uprising against Syria’s President Bashar al-Assad began. According to the Organisation for Economic Co-operation and Development, Syria now takes up more than 90 per cent of Turkey’s humanitarian assistance funds. While Turkey’s $820bn economy is burdened by the $1.5bn it spends each year on the refugees, it is still able to pro-

vide for the 220,000 refugees in the camps which are full to capacity. A deeper worry for Ankara is the rising frustration of the estimated 1.4m refugees existing outside the camps. “Either you give food and shelter to these people, or in their anger they may be much more liable to be recruited by extremists and criminals,” says Atilla Yesilada at GlobalSource Partners. Outside the camps, refugees scrape together money to rent garages or unfinished buildings. Child labour and prostitution are growing among refugees not legally allowed to work in Turkey. Many have already turned to crime, like the smuggling that has helped jihadi militants to flow into Syria and which authorities are desperate to stop. Turkey says the world is not doing enough to ease a crisis that has already cost it more than $4.5bn.

“How has the world helped us? They have provided us with $200m. Meanwhile, Europe has only 130,000 refugees from Syria at the moment,” says Recep Tayyip Erdogan, Turkey’s president. “Why won’t European nations open up their borders to refugees?”

A young girl plays outside a tent in Nizip refugee camp

This week the EU said it was finalising €70m in further aid, but a nine-day interruption in World Food Programme assistance for Syrian refugees in the region highlighted the scarcity of available funds. Amnesty International says the international community has “abandoned” refugees. But it also says Turkey has not done enough in requesting support. Privately, aid workers say Ankara does not make it easy to provide aid, arguing that the assistance spending is insufficiently transparent and that it is difficult for foreign organisations to register and operate in Turkey. Turkish officials in border towns like Reyhanli, where the population has doubled with the arrival of Syrian refugees, say they are struggling to maintain services and ease tensions between refugees and locals.

Turkey still has to grapple with huge inflows every time a new military campaign erupts near its borders. In the past two months it took in another 200,000 fleeing an offensive by jihadi militants on the border town of Kobani. It is braced for another huge influx should the Syrian government encircle Aleppo. In figures that outstrip other officials’ predictions, Mevlut Cavusoglu, the foreign minister, has even warned of 2m-3m more refugees if the city falls. Meanwhile, container camps like Nizip are turning into tiny asphalt villages — albeit ones with guard towers and metal detectors for those passing through their chain-linked fences. Cracking open her container door, Mona ushers in her children, nieces and nephews for dinner. “Our container stays the same size,” she sighs. “But the number of people in it keeps growing.”

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Friday 12 December 2014

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FINANCIAL TIMES

FT BIG READ

Person of the Year Tim Cook Reuters/Lucy Nicholson

Buybacks, hacks and big sales — a year at Apple January Apple’s shares fall 8 per cent after iPhone sales miss forecasts. March Luca Maestri becomes Apple’s chief financial officer, paving the way for more share buybacks. May Apple buys Beats Electronics for $3bn in its largest ever acquisition

Plenty to smile about

August Photographs of celebrities including Jennifer Lawrence, apparently hacked from their iCloud accounts, are posted on the internet. September Cook unveils Apple Watch and Apple Pay. The European Commission publishes the initial findings of its inquiry into Apple’s Irish tax deal. October A strong start for the iPhone 6 sees Apple beat Wall Street forecasts for the third earnings in a row this year Cook talks publicly about his sexuality for the first time. November Apple’s market capitalisation hits $700bn in nominal terms.

The Apple chief has faced criticism of his stewardship but in 2014 he turned things round and stamped his identity on a business that at one stage was valued this year at $700bn. By Tim Bradshaw and Richard Waters

M

ore than an hour into Apple’s annual shareholder meeting in February, Tim Cook had patiently fielded questions ranging from its plans for the television market to what he thought of Google Glass. But when one audience member tried to push Apple’s chief executive on the profitability of Apple’s various environmental initiatives, such as its solar-powered data centre, Mr Cook snapped. “We do things for other reasons than a profit motive, we do things because they are right and just,” Mr Cook growled. Whether in human rights, renewable energy or accessibility for people with special needs, “I don’t think about the bloody ROI,” Mr Cook said, in the same stern, uncompromising tone that Apple employees hope they never have to hear. “Just to be very straightforward with you, if that’s a hard line for you . . . then you should get out of the stock.” Many investors, it turns out, are siding with Mr Cook. After a tumultuous 2013, the share price has increased by around 50 per cent since that shareholder meeting, at one point taking its market capitalisation above $700bn.

the Year, but Mr Cook’s brave exposition of his values also sets him apart. This was never more powerful than when he talked publicly for the first time about his sexuality. “If hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it’s worth the trade-off with my own privacy,” he wrote in Bloomberg Businessweek in October. It was a rare glimpse into his closely guarded personal life that also put at risk Apple’s brand in less tolerant parts of the world. Mr Cook was driven to take a stand by his experiences growing up in Alabama, where he has talked of seeing discrimination that “literally would make me sick”.

Cook on coming out ‘If hearing that the CEO of Apple is gay can help someone . . . then it’s worth the trade-off with my own privacy’

Changing minds In the three years after the death of Steve Jobs, Mr Cook, 54, has held his nerve through attacks from activist investors and a loss of faith among some that Apple could succeed without its late founder. This year has seen Apple’s chief step out of the shadows of his predecessor and imprint the company with his own set of values and priorities: bringing in fresh blood, changing how it manages its cash pile, opening Apple up to greater collaboration and focusing more on social issues. As the new iPhone continues to smash its own launch records, Mr Cook has unveiled products such as Apple Watch and Apple Pay that take the iPhone maker into the realms of fashion and finance, recapturing a spirit of innovation that many feared had died with Jobs. In the process, Apple’s valuation this year has grown by almost as much as Google’s entire market capitalisation. But the change in Wall Street’s — and Silicon Valley’s — appreciation of Mr Cook is down to more than just the 70m iPhones Apple is expected to sell this quarter or the $42bn in sales generated in the previous. Financial success and dazzling new technology alone might have been enough to earn Apple’s steely chief executive the FT’s vote as the 2014 Person of

Online Listen to Tim Bradshaw discuss the FT’s Person of the Year at ft.com/podcasts

“From one son of the South and sports fanatic to another, my hat’s off to you,” tweeted Bill Clinton, the former US president, in response to the article. His eloquent defence of equality came after a year of faltering progress on gay marriage in the US and as arguments rage about the lack of diversity among the people running the Silicon Valley companies, including Apple, who shape so much of our culture. Mr Cook has added three women to what was previously a white-maledominated executive team and changed Apple’s board charter to commit to seeking out candidates from minorities when appointing directors. “People claim he has a cool exterior but he’s a very passionate guy and he stands up for what he believes in,” says Bob Iger, Walt Disney chief executive and Apple board member since 2011. “That is in both his personal life and at Apple.” As well as diversity, Mr Cook has championed sustainability and supplychain transparency, including a commitment to reducing Apple’s use of conflict minerals. While hyper-efficient under Mr Cook’s management before he became chief executive, Apple’s supply chain has not always been something to boast about, with recurring complaints about working conditions.

But Anne Simpson, senior portfolio manager and director of global governance at the US pension fund Calpers, a prominent Apple shareholder, believes his ethical stance is more than just posturing. “He has a charming disregard for showmanship,” she says. “Tim Cook applies this Apple notion of elegance and excellence to these new arenas.”

Show must go on Mr Cook’s lack of showmanship has not always been seen as an asset. Critics have been eager to point out that he is not so closely involved in new product development as his predecessor, and fails to elicit the same excitement when he takes to the stage to introduce them. But Mr Cook is aware of his shortcomings and has drawn on the worlds of fitness and fashion to assemble a new team of talents, including Angela Ahrendts, formerly of Burberry, and industrial designer Marc Newson. “I thought it would be impossible to replace Steve, and to some extent that’s true,” says Professor Michael Cusumano of MIT’s Sloan School of Management. “But internally the spirit is still alive and the company is organising around a less confrontational culture. We have to give Tim credit for that.” Bringing harmony to Apple’s internal fiefdoms has not been easy. There is still “huge tension” inside Apple, according to one person who has worked with the company for many years. “That tension is something he uses to run the company but it can be dangerous.” When things do go wrong, Mr Cook takes swift and merciless action. In late 2012, after the premature launch of Apple’s flawed Maps app, he dismissed Scott Forstall, who led the creation of iOS and was a close ally of Jobs, and John Browett, the former Dixons chief who had led Apple retail for less than a year. The actions sent a message that Mr Cook will not tolerate underperformance or internal politics. At that time, the chief executive was also under pressure, given Apple’s lack of clear product direction beyond milking the iPhone. Sensing blood, activist investors began to circle the company; first David Einhorn, then Carl Icahn, have lobbied for changes to how Apple is run and manages its finances. Mr Icahn has pushed for Apple to raise huge debt to return up to $150bn to shareholders and urged it to release more products, including a television set. With a growing need for someone to block and tackle Apple’s raiders and (given its tax investigation in Europe) regulators, Mr Cook’s focus on people, strategy and execution — rather than

products — finally started to look like an advantage. “He is very, very good at not allowing that pressure to in any way disrupt what Apple is trying to achieve,” says Mr Iger. “Clearly there were issues that were on his mind but Tim made sure they were never on the minds of the people who do what Apple does best.” Mr Cook’s decision to expand its cash return programme of dividends and share buybacks helped to defuse the situation with the activists, returning $94bn to date. In the end, he stared down the challenge just long enough for the next wave of iPhone growth to hit and new products to emerge from Sir Jonathan Ive’s workshop. “I don’t think there are any companies that have survived big assaults from two of the biggest beasts in the hedge fund jungle,” says Ms Simpson of Calpers. “He is cool, calm and collected — the corporate exemplar of ‘Keep calm and carry on’.” That calm can sometimes be taken for a lack of the urgency that is vital in the fast-moving tech industry. Many were disappointed that Apple Watch was not made available to buy this year. But analysts say Apple’s approach of waiting until it has perfected a product usually leads to stronger long-term performance. Samsung, whose smartphone sales have suffered this year, is on its sixth-generation smartwatch, but has still not found a real hit. With the momentum now back behind the iPhone and anticipation growing for the Watch, Mr Cook seems to have won back the confidence of Apple employees, something that analysts say was obvious in his demeanour at this year’s product launches. “He’s had more of a sense of swagger and confidence” in recent months, says Jan Dawson of Jackdaw Research. At its Worldwide Developer Conference in June, Mr Cook was mobbed by app makers who asked him to pose for selfies. By October’s iPad launch, he was even cracking jokes at his own expense. Clad in his habitual but unglamorous uniform of black untucked shirt and jeans, he said that Apple Watch had

Apple after Steve Jobs ‘The company is organising around a less confrontational culture. We have to give Tim credit for that’

Cook on his image The Apple Watch was well received by ‘people who know a lot about fashion and style — even more than I do’ been well received by “people who know a lot about fashion and style — even more than I do”, pointing a knowing finger at the chuckling audience. “He’s informal, candid and approachable,” says Ginni Rometty, chief executive of IBM, who praises him as “very authentic. It’s the hallmark of a modern CEO. What you see is what you get.”

Opening up A partnership with IBM to sell iPads and iPhones to big corporate customers is just one example of how Apple is looking beyond its own walls more under Mr Cook, something Jobs had resisted. Among dozens of small, technologyfocused acquisitions, the $3bn purchase of Beats Electronics, the celebrity-endorsed headphones and music streaming service, stands out as Apple’s largest ever deal. The acquisition still bemuses many Apple analysts, but in Jimmy Iovine and Dr Dre, Beats’ founders, Mr Cook has instantly regained credibility with the music industry after years of neglecting the iTunes download store. If Mr Cook is guilty of missing the rapid growth of subscription services such as Spotify, he has moved swiftly to compensate for it — though for a high price. Prof Cusumano sees all this as evidence that the company is opening up more, including in allowing developers to customise more of its iOS software. Mr Cook must balance that with the secrecy that surrounds its product development. Already, there are whispers on Apple’s campus about another secret project, on the scale of the iPhone or Watch, which is pulling in talent from across Cupertino. But whether another hit product can emerge to fend off questions about Apple’s life after Jobs, Mr Cook learnt long ago to be patient and trust his instincts, just as he did when he ignored the doubters to join the then-struggling company in 1998. “Even though I’m an engineer and an analytical person at heart, the most important decisions I’ve ever made had nothing to do with any of that,” he told an interviewer at Duke University, where he studied for an MBA, last year. “They were always based on intuition.”

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FINANCIAL TIMES

Friday 12 December 2014

Letters

Email: [email protected] or Fax: +44 (0) 20 7873 5938 Include daytime telephone number and full address Corrections: [email protected]

Internationalisation of the renminbi: more hype than hope

FRIDAY 12 DECEMBER 2014

Miliband tackles his deficit attention disorder Labour leader finally turns his mind to Britain’s borrowing problem Most conference speeches are entirely forgettable. In October, Ed Miliband managed to deliver one that was memorable only for what he forgot to say. Far from being an aberration, however, the failure of the Labour party leader to talk about the deficit reflected a settled policy of ignoring a problem to which he had no solution. This position has become increasingly untenable. Mr Miliband intends to lead Britain’s main opposition party into government next May, and sorely needs a credible fiscal strategy. Yesterday he finally gave the topic his attention, describing the outlines of a plan to bring balance to the UK public finances. Within the next parliament Labour would aim to deliver a surplus on the current budget, allowing borrowing only for capital investment. It plans for debt to start falling as a ratio of gross domestic product. Without ruling out tax rises, Ed Balls, shadow chancellor, has also warned his colleagues to expect cuts in departmental expenditure to achieve this goal. Labour’s decision to stake out a fiscal position is not only intended to reassure the bond markets. The aftermath of the government’s Autumn Statement has seen growing unease at the pace and scale of the public spending cuts pencilled in by George Osborne, chancellor. Mr Miliband’s speech is an attempt to make political capital out of this anxiety. His plans would allow Labour to support a state 2 or 3 percentage points of GDP larger than the one Mr Osborne envisages. There are still plenty of holes in Labour’s economic strategy. While blaming low wages for the high deficit, they have no policies fit to address this challenge. In fact, Mr Miliband’s punitive approach to business would make the problem worse by discouraging investment and enterprise. Many questions about spending remain

unanswered. Mr Miliband made little reference to the soaring welfare budget, nor hinted which departments would be in the line of fire. A proposal for higher property taxes to fund a £2.5bn increase in National Health Service spending would be swallowed up by inflation within a year. But the charge of vagueness could also be levelled at the Conservatives, whose plans require billions more in public spending cuts. In this regard, Labour is gambling that its strategy can score points for being both more realistic and humane. Yet these advantages are not won without cost. Under Mr Miliband, public debt would be significantly higher. It is currently expected to peak at above 80 per cent of GDP. Given a normal rate of economic growth, either of the parties’ plans would see that ratio come down — but the pace of reduction under the Conservatives would be twice as fast. By ignoring the fiscal problem for so long Labour has allowed trust in its economic competence to collapse and the coalition to define the terms of the debate. The Conservatives intend to exploit this by turning political attention from the deficit on to the question of how much public debt the UK can bear. Yet while debt ratios certainly need to come down, the Tories are yet to demonstrate why this has to proceed as quickly as their plans suggest, nor how it can be achieved without badly damaging public services. As a result, the space has finally opened up for a proper argument about fiscal policy, with clear blue water between the parties’ plans. Set against its former reticence, the outline that Labour sketched represents some sort of progress. On its own it will not be enough to recapture the confidence of the electorate. Over the next few months, Mr Miliband needs to be even more forthcoming.

Spain’s flawed challenge to the mighty Google New copyright law signals determination to take on US search engine Google is in conflict with European governments and regulators on many fronts, most notably regarding its market power and its respect for personal privacy. But few issues are becoming as sensitive for the internet company as its disagreement with European publishers over issues of copyright. Infuriated by the loss of revenues that they say results from the republication of their material on the web, leading publishing companies across the EU have demanded the legal right to charge Google every time their content appears on the internet company’s news site. Now the Spanish government has obliged. Under a new law, which comes into effect at the start of next year, all online news aggregators will be required to pay Spanish publishers a fee for content that they link to. If they fail to pay the as yet unspecified sum, they will be fined up to $600,000. Google has already said that it will close its Spanish news service next week as a result of the legislation. And while it is by far the largest provider in Spain, it is not the only business to be affected. Infoaliment.com, a small Spanish aggregator, has also said it will shut down. Legislators and publishers across Europe have long expressed concern that Google’s pervasiveness means that existing copyright laws are not sufficiently strong to protect traditional media companies. In Europe, Google enjoys a market share of some 90 per cent of internet searches. While its news service links to publishers’ websites, the concern is that it is possible to convey the gist of many stories in a very few words, absolving the aggregator of the need to compensate the rights’ owner under existing copyright law. Nonetheless, Spain’s legislation, which comes into effect on January 1, looks draconian. Other EU states have

attempted to get to grips with the problem. This year, Germany passed new rules permitting publishers to charge sites such as Google whenever snippets of their articles are aggregated online. But that legislation allowed the publisher to decide whether or not to apply a charge. Most German companies abstained because they found the drop in traffic to be so steep once they were delisted that they were willing to allow Google to publish without having to pay. But Spain’s legislation does not leave this room for discretion. The mandated levy cannot be waived. It is not clear what this legislation is likely to achieve, other than to make clear Madrid’s dim view of Google. Denied the opportunity to showcase their content on the most widely used web search site, Spanish publishers will simply lose that advertising window. As the German example shows, they ultimately recognise the promotional value in being on an aggregator site. While Google will lose a feature from its Spanish service, it is not clear how it will be damaged by the move, since most other aggregators will also be knocked out. Google’s decision to shut down its Spanish news site will barely dent its European operations. But the company should not ignore the extent to which European governments are striving to pass laws designed to restrict its activities. The US internet company continues to take the view that its operations provide an unambiguous social and economic good. But it underestimates the extent to which governments and competitors in Europe regard the US company as a domineering presence and an economic threat. If Google fails to recognise this, it may face a more concerted attempt at the EU level to rein in its power.

Sir, In “Turning away from the dollar” (The Big Read, December 10), James Kynge and Josh Noble confirm what China’s leaders have been saying since the financial crisis in 2008, namely their disapproval of the US dollarbased global financial system. Nevertheless, each of the three changes cited as evidence that China is indeed turning away from the US dollar are more nuanced and questionable than they appear at first glance. It is true that China doesn’t like the continuous accrual of US Treasuries to its currency reserves, but for as long as it runs an external balance of payments surplus, it has no other choice. The external surplus has indeed fallen as a share of gross domestic product to around 2 per cent but we should not blindly extrapolate. As China rebalances its economy, and the investment share of GDP declines,

China’s external surplus is more likely to rise than fall. Twenty years from now, as China’s old age dependency rate soars, this may change, though in other mercantilist nations, such as Japan and Germany, it hasn’t. The investment rates have dropped, but the rise in aggregate savings has simply shifted from households to companies, and that is happening in China too. China’s sponsorship of three new development banks is an intriguing phenomenon, and suggests, as Mr Kynge and Mr Noble maintain, that the country is keen on promoting a global financial policy in which China’s capital outflows and the use of the renminbi become more important. But there has been a lot of grandstanding here. The New Development Bank will use US dollars. The Asia Infrastructure Investment Bank, which is half-owned by China,

Perception is heightened as President Xi tackles the corruption problem Sir, After recent reports referring to China slipping down Transparency International’s Corruption Perception Index (CPI), I would like to correct the misperception that this reflects negatively on its current anticorruption drive. On the contrary, by bringing to light past abuses, President Xi Jinping’s initiative has sharply raised awareness and public expression on this topic. It is precisely because China is tackling this problem (admittedly with uncertain determination or ultimate success) that measures like that of Transparency International show heightened perception of the problem. Indeed, this should be a goal for any effective deterrent to corrupt practices. From the observed movement of the CPI, one might argue that corruption was worse than expected in the past, but not that it is getting worse. David Roland-Holst Professor, Depts of Economics and Agricultural and Resource Economics, University of California, US

We simply don’t need so many humans Sir, Reforming immigration policies for Europe — and the other rich countries — may not even be needed if the technology gurus have it only half right (“Ageing Europe needs new blood to restore its economic health”, Global Insight,” December 8). The prospects for adopting labour-saving technologies in many of the labourintensive sectors in the economy are improving annually: self-checkout at supermarkets, self-check in and out at hotels, self-ordering and bill settlement in restaurants, self-administered health diagnostic tests and so on all translate into a reduced need for workers per dollar of gross domestic product on the one hand, and fewer total workers along with higher levels of GDP on the other. Horses were used extensively on the farm and in transport in 18th and 19th century America and Europe, but once mechanisation and electrification were implemented, and the railroad, automobiles and buses became commercially viable as transport

Farage, road rage and the ‘Top Gear’ political wing Notebook by Robert Shrimsley

‘We’ll just have to be ineffective without using torture from now on’ alternatives, owning horses became a hobby of the rich, and the horse population declined quickly and dramatically. The same can probably be said about humans in the 21st century: we just don’t need that many of them — and, in the rich countries, they are expensive to “produce” (prenatal and postnatal care), “assemble” (nurture and educate), and “maintain” (from adolescence to death). Ira Sohn Professor of Economics and Finance, Montclair State University, NJ, US

Yes, the CIA is flawed but it is not the enemy Sir, The Democratic majority of the Intelligence Committee of the US Senate has issued a thoroughly damning report accusing the CIA of exceeding its moral authority in instituting a rigorous interrogation of suspected Islamist radicals in the aftermath of the 9/11 attacks (“Senate accuses CIA of lying over brutal torture that leaves ‘stain’ on US values”, December 10). The findings, some of which are undoubtedly true, are disturbing, but so has been the committee’s investigative procedure. The Democratic majority on the committee conducted the investigation without Republican participation, the minority members having refused to join when it became apparent that Senator Dianne Feinstein, the committee chair, planned a partisan procedure. Thus, a one-sided

You have to sympathise with Nigel Farage, the leader of the anti-EU UK Independence party. There he was, stuck in traffic on the M4, a six-hour drive to the Welsh Ukip conference stretching interminably ahead of him. It is enough to make anyone lash out. To be fair, we’ve all been there. Well, not to a Welsh Ukip conference in Port Talbot, you understand, but fuming in some seemingly endless traffic jam, swearing at the dashboard at some improbable cause. (Traffic programme announcers sometimes like to attribute the delays to sheer volume of traffic — never just volume, always “sheer” volume — which seems rather like blaming thunderstorms on sheer volume of rain.) Of course, we only have Mr Farage’s word for it that his three to four-hour drive actually took “six hours and 15 minutes”. Perhaps he was lured into the Membury service station for a Whopper. But in any case, he was clearly sitting there, steaming. And as you do — well, as I do — you sit in your car moaning about the traffic and mouthing off safe in the knowledge that only your fellow passengers can hear you. (If one were looking to update the adage that no man is a hero to his valet, one possible alternative is that no motorist is a hero to his passengers.) When he finally reached Wales he was clearly still steaming. So when confronted by a BBC reporter about why he had disappointed his doting

will nevertheless need private capital, which will be picky about transparency and convertibility. The Silk Road Economic Project will be funded in part by China’s development banks in the western regions of China for the foreseeable future. The romance of the Silk Road is seductive and Chinese companies will doubtless look to be active in central and western Asia, but China is looking to its geopolitical leverage here, not an eastern Marshall Plan. Finally, there is a world of difference between greater use of the renminbi in the settlement and invoicing of world trade and finance transactions, and its use as a global or reserve currency. The former is internationalisation, which is proceeding apace as Mr Kynge and Mr Noble point out. The latter cannot happen unless or until China runs perpetual external deficits,

which will not happen any time soon, or it has built up a more trusted and deeper financial market infrastructure and, significantly, unless it allows its own residents unfettered access to physical, financial and portfolio capital markets overseas. When the Chinese talk about capital market liberalisation, this is at least one thing they do not mean. It is easy to talk about disliking or turning away from the US dollar in the global system. China’s rhetoric and initiatives have stirred this debate, and there is no question that from small beginnings, the renminbi will become a more widely used currency, similar to the Japanese yen, Swiss franc and pound sterling. The rest is, for the foreseeable future, more hype than hope. George Magnus London N6, UK

investigation. And it gets worse, for no witnesses were heard. The entire investigation relied on written file material without context that could have been acquired from first-hand witnesses. Worse still is that some conclusions, including that “enhanced interrogation” techniques yielded no actionable intelligence, simply defy logic and are denied by former CIA officers who were present at the actual questioning. We must recognise that Marquis of Queensberry rules do not apply in this combat, and that William Skardon (1904-1987), the legendary chief investigator for MI5, is no longer available to guide our efforts. The CIA is not the enemy Ms Feinstein’s Democratic majority would have us believe. Flawed yes, but still on the right side. Paul Bloustein Cincinnati, OH, US

Give local companies a chance to compete

Sir, The CIA is reported as conceding that it made mistakes in its treatment of alleged terrorist captives. Since when has the deliberate infliction of torture been “a mistake”? Horrendous, degrading, grossly immoral — yet a mistake? Some years ago Hillary Clinton, as US secretary of state, confessed to “misspeaking” — when she had made something up. Others have spoken of being “economical with the actuality”, when they have deliberately misled. And, returning to torture, the CIA and certain political leaders describe it as “enhanced” interrogation, with “enhanced” giving it the air of the spiritual and uplifting. Is it not time to tell things as they are — especially when they involve such horrific and degrading acts? Peter Cave London W1, UK

Debts are always paid — by someone Sir, Alfredo Pastor’s subtle use of words spreads an unfortunate misconception that debts (exceptionally of course) can end up unpaid (Letters, December 8). I put to you that throughout history no debt has ever ended up unpaid. The reason is simple: when borrowers fail to pay, lenders end up picking up the tab. By default. João Miguel Ejarque Copenhagen, Denmark

members — some of whom had paid £25 for the pleasure of doting in person — Mr Farage reverted to glaring-at-his-dashboard mode. Flashing that jolly look he deploys when he is about to say something truly outrageous, he replied that he had been delayed in traffic, caused mainly by immigrants on the M4 — because of the “population going through the roof, chiefly because of open-door immigration”. It was a bold defence. The M4 is often busy, but I’ve never seen a demographic breakdown. You did once find a lot of Romans on the road to Bath but the carriageways have been upgraded a fair bit since then. Mr Farage’s opponents jumped on the remark as a racist gaffe, proof that the mask had slipped. It was admittedly loose talk even for the Ukip leader, the kind of unverifiable rhetoric more suited to George Orwell’s “two minutes hate”. In a way, the mask did slip — but not perhaps in the manner most might think. This was not the Ukip leader showing himself to be a bit more racist than his opponents imagine. Mr Farage and his cohorts don’t care if urban liberals are outraged by his comments. He cannot be hurt, and may even be strengthened, by the opprobrium of those who already dislike him. He is not talking to them, and the people he is talking to don’t see anything wrong in what he said. They like his message that Britain is “full up”. The true self Mr Farage was

Sir, The balance of power when bidding for public sector contracts is so skewed in favour of large outsourcing companies that it appears, even when they underperform or are suspected of fraud, that the government cannot help but throw millions at them (“Serco and G4S won fresh work despite being ‘on probation’”, December 10). It’s time for Whitehall to break the cycle of poor results and poor value for money from large-scale outsourcing to the same small list of suppliers, despite their repeated failures. Local, community-based, not-for-profit organisations, which invest money back into their communities and services, are hugely disadvantaged when it comes to bidding for public sector contracts. Large national organisations are winning local contracts because they package services in a way that looks cheaper and more attractive to commissioners. These might look like a great deal on paper, but they often fail to deliver what’s needed and costs end up spiralling. A review of procurement frameworks is badly needed — top-down reform that sets out how public services commissioned and delivered at a local level meet people’s needs better, reduce demand and can save money. Providing more resources for the training of commissioners to support intelligent commissioning of public services is another way to ensure that communitybased organisations compete for public sector contracts on an equal footing with big national companies. Commissioners need to value local organisations who know their service users and their needs. It’s time for wholesale reform of the system which is based on the myth that bigger is better. Tony Armstrong CEO, Locality, London N1, UK

What sort of word is that? Sir, FT readers rely on the newspaper to provide clear objective reports written in good English. So what sort of headline wording is “takes a pop” (December 11), and what on earth was it doing on the front page of the FT? Geoff Davies WWAM Writers Ltd, Birmingham, UK

showing was not some crypto-fascist or closet Nazi. He was showing that he is, in essence, an angry man in a car. He and his party are road rage manifested in the political system. They are seething drivers stuck in the slow lane, complaining about crumbling infrastructure, useless governments and bloody foreigners. Ukip is the political wing of Top Gear — and Mr Farage is the unthinking man’s Jeremy Clarkson. (Or is it the thinking man’s; I can never decide.) Naturally there are legitimate complaints mixed in with the rage, not least about infrastructure that has not kept pace with population growth. But Ukip fundamentally combines the howls of an establishment class that somehow considers itself now outside the political mainstream with the more comprehensible anger of the dispossessed working class. An unholy union of “white van man” and leather driving gloves. Both feel an older better England has been taken away and — like Top Gear — lash out at alien classes, be they foreigners, minorities or anyone who does not conform to a world view set in aspic in the era of Fanny Cradock. Mr Clarkson laughs at outsiders; Mr Farage is less generous. But both are yearning for an older world; a world in which no one, but no one, dared get in the way of an Englishman in his motor car. [email protected]

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Friday 12 December 2014

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FINANCIAL TIMES

Comment Economy healthy, inflation weak, Fed stymied FINANCE

Gillian Tett

T

his month, American consumers have received some early Christmas presents. Late last week, US payroll data revealed that the pace of job creation in America is now running at its highest level since 1999, as the economy continues to expand. Then this week the average price of petrol at the pump tumbled to $2.77 a gallon, some 61 cents below last December, due to falling oil prices. In a country that is addicted to cars, that could put another $100bn into the pockets of American households next year, Moody’s calculates. And there are other gifts. Global food prices are now about 5 per cent lower than last year. Even core US consumer price inflation (which excludes those volatile

commodities) has quietly slid to just 1.5 per cent a year, well below the 3 per cent level that consumers anticipated according to surveys. Or to put it another way, American households are now experiencing that rare blend of expansion with low prices. It is a mix that might make Santa smile. But sadly there is one big catch. Though lower consumer prices are a blessing for households, they leave the Federal Reserve in a bind. In recent weeks, it has been assumed in the financial markets that the Fed will start raising US interest rates in the middle of next year. Indeed, these expectations are now so well entrenched that many investors believe that when the Fed’s Open Market Committee meets next week it will modify its statement to remove a prior pledge to keep interest rates rock-bottom low “for a considerable period of time”. On the face of it, it seems there is every reason for the Fed to act. Growth next year is projected to be about 3 per cent, a healthy number; it could be nearer 4 per cent if consumers spend that projected $100bn petrol windfall.

Meanwhile, there is mounting evidence that the Fed’s super loose policy has been stoking excessive prices rises — if not dangerous bubbles — in numerous asset classes, ranging from art to risky corporate bonds to tech stocks. But the rub is that it would be very unusual, to put it mildly, for a central bank to tighten policy when inflation is so low, and falling. After all, the current

Given this, the most likely outcome is that the Fed will keep playing for time. That seems sensible 1.5 per cent rate is well below the Fed’s 2 per cent target. And what is really notable — and challenging for the Fed — is that the markets imply inflation rate could soon fall further. Take a look, for example, at the socalled “break-even rate” compiled by the St Louis Fed (this tracks the average future inflation rate implied by the difference between conventional and

inflation-linked treasuries). This week, the five-year rate fell as low as 1.24 per cent, while the 10-year rate sank to 1.71 per cent. That is well below the Fed’s target and lower than this summer, when rates were around 2 and 2.3 per cent respectively. They are now heading towards levels seen in the financial panic of 2008. Fed officials are uncertain about how to interpret this. Some officials, such as Stanley Fischer, deputy chairman, think this pattern is just a temporary effect of tumbling oil prices, which will fade once energy prices have been reset to a lower norm. They also think the message from that break-even index is being distorted by thin liquidity in global bond markets. They are consequently tempted to ignore the inflation numbers, particularly since there is a good chance that unemployment will sink below 5.5 per cent early next year — which the Fed thinks is the natural rate. Bill Dudley, governor of the New York Fed, recently hinted that falling commodity prices should actually strengthen the case for a rate rise because it will fuel US growth. But another strand of thought insists

that the Fed should not just ignore its inflation target. After all, this argument goes, not everything can be blamed on oil: as Eric Rosengren of the Boston Fed points out, the weak global growth outlook is suppressing prices, too. So is the bifurcated US labour market, where a minority of elite of workers enjoy high wages and security, but the majority remain plagued by low wages and insecure jobs, with a vanishing middle. Given this, the most likely outcome is that the Fed will keep playing for time. That seems sensible, given how much uncertainty surrounds the commodity markets, and the potentially momentous impact of the swing in prices. Meanwhile, there are two key points for investors to note. Firstly, this debate is a reminder that a big gap has opened up between the direction of asset prices and consumer prices. Secondly, as long as that gap keeps widening, central banks will remain caught in a trap, and the potential for bond market volatility will remain high. All eyes on the FOMC. And those petrol stations. [email protected]

London should break free from Little England GLOBAL POLITICS

Philip Stephens

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ondon does not need a mayor; it needs a prime minister. Britain is fracturing. Scotland may yet quit the union and England turn its back on Europe. The Conservatives are throwing up barricades against the immigrants who are the capital’s lifeblood. The world’s most vibrant capital city cannot entrust its fate to a little England. This is a moment to imagine a different future: independence. Boris Johnson, the present mayor, says he too wants power shifted from Westminster to City Hall. His demands — for a tad more financial autonomy and oversight of the courts — are piffling. Unsurprisingly so. Mr Johnson will soon vacate City Hall for the House of Commons. He aches to replace David Cameron in Downing Street. Mr Johnson’s loyalties to London count for nothing against consuming ambition. The economics of independence speak for themselves. With a population of 8.5m (closer to 13.5m in the wider metropolitan area) London accounts for more than a fifth of Britain’s gross domestic product and generates as big a chunk of its tax revenues. This gives it an economy about the size of Sweden.

Unemployment is less than 3 per cent; the demographic profile is more youthful than in the rest of the UK. Tourists spend £20bn each year in the capital. The metropolis has become a hub for high-value global businesses reaching well beyond its traditional role as a preeminent centre for financial services. It is the chosen home of the footloose super-rich and those at the bottom of the pile with the energy and grit to lift themselves out of hardship. London hums with enterprise, energy and people having fun. For those who do not fret about the ethnicity of their neighbours, it is a great place to live. Less well understood is that the capital has all the other attributes of a modern state: a natural frontier, superb transport links, first rate education and health networks, unrivalled heritage and cultural centres — even a readymade head of state. Then there are the six first class soccer teams in the Premier League and the spiritual homes of cricket and rugby at Lord’s and Twickenham. Sure, independence would leave some rough edges. Assets and debts would have to be fairly allocated between the separating parties. London can afford to be generous. The M25 orbital motorway is the ready-made frontier, providing access into the city and fast connections to the rest of England. The road’s on and off ramps are perfect sites for border control posts, though, in this the digital age, electronic surveillance and recognition devices would replace old-fashioned immigration queues. The identity chips

Martin Wolf ast week’s Autumn Statement marked the beginning of serious campaigning for the British general election due next May. George Osborne, Conservative chancellor of the exchequer, set out his perspective clearly. Ed Miliband, Labour’s leader, has responded this week. Where do the two main parties differ? And what chance does either have of delivering what they promise? Start with the second question. By far the most important economic uncertainty is over productivity. As the Office for Budget Responsibility notes, productivity has increased on average by a mere 0.5 per cent a year since 2008. If it were to remain so low, economic growth might fall to 1 per cent in 2016-17 and then below even that, as the economy

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reaches full employment. But if productivity were to have a burst of growth after the long lull, the economy might expand at about 4 per cent a year for some years. Given these uncertainties, we have little idea what will happen to the economy and the fiscal position. The political uncertainty is yet more striking. The two main parties have lost their purchase on the electorate; neither is likely to win outright. Research from YouGov indicates that the other parties together now have more support than either the Conservatives or Labour. The Scottish National party might even end up with more than 40 seats at Westminster. The likeliest outcomes are a coalition or a minority government. For a long time, the UK was a boringly stable democracy. It is still a democracy. But it is not boring. Nevertheless, the main parties’ fiscal choices will shape the campaign and frame choices for the next government. Policy makers have to make two big decisions: first, over the targets for the fiscal balance and public debt; and, second, over the relationship between tax increases and spending cuts.

OPINION

Nobuko Kobayashi

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apan’s carmakers are gleaming symbols of industrial strength. But there is one area in which they are not so shiny yet: employment practices that squander the potential of Japanese women. Both Toyota and Nissan have no women on their boards; Honda appointed its first only this year. The picture is repeated across Japanese industry, where women hold only 7 per cent of managerial positions compared with almost 45 per cent in the US. Female role models in Japanese business are few and far between. One of the few is Mitsuru Claire Chino, an executive officer at Itochu Corporation, a large general trading company. But she is such an unusual case that when she was appointed last year, the mere act of placing a woman in a senior job was enough to make headlines. Yet Japan needs women in senior positions in business everywhere, as the country seeks to prop up its declining working-age population and boost its faltering economy. Politicians know as much. In the run-up to Sunday’s general election, all the parties have spoken of introducing measures to support young families, so that women can both have families and work full-time. Yet there is a crucial point no one wants to address: a work culture that favours men. Bosses (mostly men) expect their staff to work as they did when they were young — which means long hours. It is important to be present to please the boss, whether or not the hours are productive. Even at foreign-owned compa-

The typical work culture calls for ‘nomi-kai’ — after-hours drinking sessions with colleagues now embedded in passports could readily be adapted for car windscreens. Heathrow, of course, is scarcely a good advertisement for a 21st century city state. But, under new management, it could be turned into a half-decent airport. The rest of England would inherit Gatwick as the entry point for airlines to the south east. Passenger ferries from London to the rest of Europe would run from the Thames port of Tilbury, while Dover devolved to the rump England. With its boroughs and town halls, London has the political infrastructure for a new democracy. Their electoral registers would determine eligibility to vote in an independence referendum. Assuming a Yes — I cannot imagine any other possibility — a new parliament would be established at Westminster.

The M25 orbital motorway is the ready-made frontier, its on and off ramps perfect for border control posts

London would eschew centralised government, adopting instead a federal constitution modelled on the one British officials wrote for the German Federal Republic. The city would thus recall a lesson Britain has forgotten: power is best exercised close to the people. Queen Elizabeth would retain her home at Buckingham Palace as the city state’s constitutional monarch. Membership of the Commonwealth would follow. The new state would join the EU, lifting the threat to the health of its global financial institutions and other professional services. Free of the influence of the europhobes (Nigel Farage’s UK Independence party scores badly in the capital), it would join the border-free Schengen area, ensuring its doors remained open to Polish doctors, Italian designers and French mathematicians. For a time, at least, London would keep the pound. The rest of England would be free to share the currency. Thus liberated, the capital would recognise that diversity is its strength. The children already doing most to raise standards in its schools are the offspring

of first-generation immigrants. For non-EU citizens, there would be a liberal, points-based immigration regime to attract the best and brightest from around the world and match employment openings with skills. Special arrangements would operate for workers travelling into the city from England. This should not be a problem. Britain already has an open borders model in the common travel area with Ireland. If England chose to build a fence on its side of the M25, however, its citizens would have to compete with Indian IT engineers and Brazilian entrepreneurs for work permits in London. Doubtless, the pinched English nationalists of Ukip and antiimmigration pressure groups would cry foul. Tant pis. Their vision of statehood, fixated on the proportion of the population that is “white”, is confounded by London’s success. Saloon bar bores in the home counties can be left to their anguished debates about identity. Londoners should break free. [email protected]

The battle over public finances will define Britain ECONOMICS

Male bonding and ‘chivalry’ hold Japanese women back

On both points, the Conservatives’ plans are commendably clear. They indicate a desire to deliver an overall fiscal surplus of 1 per cent of gross domestic product by 2019-20, against a deficit of 5 per cent this fiscal year (and 10.2 per cent in 2009-10). This would be delivered by curbs on spending, which is forecast to decline from 40.5 per cent of GDP this year (and 45.3 per cent in

The case for achieving an overall fiscal surplus in the next parliament is not overwhelming 2009-10) to 35.2 per cent in 2019-20 — the lowest ratio since the 1930s. Meanwhile, the ratio of fiscal receipts to GDP would rise slightly, from 35.5 per cent to 36.2 per cent of GDP. If delivered, these plans would put the UK in much the same place as today’s US in terms of the size of “general government”. These plans are indeed radical. That is certain. Mr Miliband’s announcement is less

clear. But Labour is committed to a surplus on the current budget alone (and so excluding spending on investment). In 2019-20, on OBR forecasts, spending as a proportion of GDP could — other things being equal — be about 2 percentage points higher under Labour’s plans, at about 37.5 per cent. Accordingly, the reduction in spending would be 3 per cent of GDP, against more than 5 per cent under the Tories. Labour would be cutting, but by substantially less. Which fiscal objective makes most sense? In normal times, balancing the current budget is the better choice. This is particularly true when, as now, the government can borrow to invest at long-term real rates of interest of near zero. The argument against is that public sector net debt is now too high, at about 80 per cent of GDP. Thus, a surplus would bring the debt ratio back to nearly 30 per cent by the mid-2030s, while a balanced current budget would bring it back to only 60 per cent. Yet this last is not the only consideration. It is unlikely that the further radical cuts in spending implied by the chancellor’s plans could be delivered

without compromising the ability to deliver the level of public services and transfers the public expects. That cuts have occurred without a huge political backlash so far does not disprove this. Furthermore, the chancellor’s plans also have implications for the balance between income and spending in the rest of the economy. The OBR forecasts that the household sector would move to “a historically large” financial deficit of 3.1 per cent of GDP in 2019, while the ratio of household debt to income would hit an all-time peak. This is worrying. The case for achieving an overall fiscal surplus in the next parliament is not overwhelming. The opportunity to borrow more for investment is too valuable, though the current budget should indeed be in surplus. Furthermore, if the aim should be an overall surplus, taxes need to rise. Otherwise, too much of the cost would fall on the most vulnerable people. Big questions arise over how fiscally prudent the UK needs to be. Equally big are those over who should bear the cost. [email protected]

nies such as mine, junior consultants sometimes stick around to provide moral support while others burn the midnight oil, sacrificing personal time in the cause of “team spirit”. The typical work culture at Japanese corporations calls for nomi-kai — afterhours sessions drinking and bonding with colleagues. It is less common than it once was for these end up at Tokyo’s kyaba-kura (cabaret clubs), where hostesses sit at the table and grease the conversation. But it still happens, and female colleagues are not welcome. So what do women do? Well, we put up with it. We are brought up to play nice. We want to please the boss and avoid ruffling feathers. Eventually the pressure of juggling work and family life takes its toll. My best friend works at one of Japan’s largest trading conglomerates. Of a large cohort of female graduates hired 20 years ago, she tells me she is the only one who is still working there. The few who persevere face another hurdle: male colleagues and bosses who try to “protect” them from excessive workloads. This prevents women being assigned to supposedly tougher projects or sent on business trips. This is not a conscious effort to exclude women from senior roles. I have spoken to highly educated and successful men over 40 who genuinely believe the “fair sex” needs extra care. Their misplaced chivalry deprives female colleagues of opportunities, hurting their prospects when it comes to senior managerial roles. The message to the younger generation is that working seriously and professionally does not pay off. Can changing the work culture have an impact? There are encouraging glimpses of progress. Legal departments at Japanese corporations generally employ a higher percentage of women — sometimes up to 40 per cent — because here brainpower is all that matters, and face time is less important in a support role. Furthermore, the notion of “protecting” women is less prevalent. Is it a coincidence that Ms Chino, the executive officer at Itochu, hails from the legal department? It is a start, but Japan needs to replicate this across all its industries. Progress will mean changing the way performance is measured and rewarded. Women themselves, with support from a new generation of men, need to be catalyst for change. Japan must not pay lip service to harnessing the potential of its women. The writer is partner-elect at the Tokyo office of AT Kearney, a consultancy

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FINANCIAL TIMES

Friday 12 December 2014

BUSINESS LIFE Personal technology

Best podcast apps Playlists, alerts and settings as podcasters win a new hearing TIM BRADSHAW

Sarah Koenig, the journalist who makes Serial

The man mending careers and hearts WORKING LIVES

Emma Jacobs Destructive habits at work are often mirrored in relationships, according to Manj Weerasekera, a coach who tackles both

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anj Weerasekera had an itch of an idea that would not go away. The executive coach kept meeting senior businessmen who in the course of their work-focused meetings would reveal that they were having relationship problems at home. It was only after entrusting career problems to him that they felt comfortable enough to discuss their personal lives. Mr Weerasekera, a 50-year-old divorcee, today dressed in a navy cowl-neck jumper, describes himself as “happily divorced”, meaning he had an amicable split rather than being pleased to see the back of his wife. He thought these men needed a helping hand, not from a therapist but a coach. Today, after offering such services for three years, he says 40 per cent of his work is dedicated to guiding divorced men to their ideal partner. Such advice does not come cheap. Mr Weerasekera charges up to £2,500 a month for his services — this buys 90 minutes of face-to-face private coaching in his office in central London, and unlimited phone calls and emails — and might see a client for eight months (though, he points out, there is free advice available on his website).

When he started researching his business idea, he was struck by recurring problems for people in new relationships post-divorce. “The more I talked to men, I found a pattern . . . There is a large percentage of men who end up marrying the same woman in a different body,” he says. Originally an engineer who worked for NCR and subsequent spin-offs when they were bought by AT&T, Mr Weerasekera, who has six sisters and parents who came from Sri Lanka, had a “healthy interest in amateur psychology” and trained as a coach. Finally he decided to step off the corporate ladder and go it alone, coaching executives from banks, telecoms and oil companies, on how to change their mindset. After helping professionals boost their careers for a number of years, he started to look into the market offering help to divorced men. There was, he realised, little competition. “I found a decent coach in America and another teaching men how to hide their assets,” he says. “It’s such an open space, there’s space for a lot of good coaches.” The books aimed at men tended to be mired in the 1970s, proffering tips to divorced men on how to date, or written by pick-up artists teaching men how to play the game and bed women. On mention of Julien Blanc, the pick-up artist extraordinaire who was last month banned entry from the UK, after being accused of championing sexual assault, Mr Weerasekera visibly recoils, emphasising that he is not operating at the “sleazy end”. He has a precise demographic in fact: a male executive (“in middle to higher management”), over 40-years-old. Most importantly, “they’re interested in attracting the right person for a longterm relationship, learning from their mistakes”. This is all about mindset changes, he says. There are parallels in business. Mr Weerasekera finds his cli-

ents believe that leaving a company will solve their career problems. “People often run away from themselves but they don’t realise they’re taking them with them . . . [They’ve] got to change their thinking.” Many of his clients find making changes in their personal life far scarier than in their working life. The metric for success is when a client says: “Actually this isn’t scary, I know what to do . . . I’m feeling more confident in myself.” He insists he has been invited to a few wedding ceremonies and introduced as the groom’s coach, and very occasionally as a dating guru. One of the biggest hurdles for single men to overcome, he claims, is antago-

The ‘happily divorced’ Manj Weerasekera Daniel Jones

Many of his clients find making changes in their personal life far scarier than in their working life nism towards their ex-wives. On a first date, too many complain about their exes, according to the coach. “How attractive is that?” (The answer, if in doubt, is not very). “So what we do is lose the baggage. It doesn’t mean you erase everything that happened. Just dampen the impact.” Mr Weerasekera, sipping peppermint tea in a bar of a hotel in Putney, southwest London, close to his home, speaks with precision. He is not recommending that people fake it on a first date — if they have not made their peace with the past the festering resentment and anger will only come out later. The next step is to “design the type of woman” the client would like to meet. While many focus on appearance, Mr

Weerasekera insists that what most of his clients are hankering after is to “feel they can be themselves in a relationship”. He cites one man — a typical client — who came to him, by way of example. His ex-wife no longer shared his interests and they had grown apart. One of his passions was yoga; she was not interested. “That type of thing [can prompt] ridicule . . . can lead to arguments.” So Mr Weerasekera asked his client a salient question. “In order to attract that type of woman, what type of man do you need to be?” The client needed some self-improvement. After 20 years of marriage, he had let his appearance slip: his paunch was soft, his wardrobe, dated and his personal grooming below par. The coach has a list of professionals — personal shoppers and trainers, grooming experts — to help. “One of the mistakes men make is they think they can do it on their own and they don’t need to. Why wouldn’t you find an expert to say, ‘I think this cut of jacket would suit you better’?” He might also advise on an online dating profile. The most common mistakes his clients make are taking bad selfies with a webcam or picking flattering portraits that are 20 years out of date as well as writing bland personal statements, recounting a love of walks, reading the weekend papers and watching a DVD from the sofa. A breezy reference to their status as divorced is important too. In his opinion too many men “jump in” to dating too soon after a separation (he also believes that women wait too long). One man he worked with posted his dating profile online just 48 hours after deciding to divorce. He also believes that people should stop seeing divorce as failure. He reflects on his own experience. “When we were together we were great.” [email protected] Twitter: @emmavj

Blissbasket spares India’s blushes in spite of risqué products A web retailer has found a way to tap Indians’ private desires, says Amy Kazmin Ancient India gave the world the Kama Sutra, a poetic guide to sexual pleasure, with in-depth descriptions of desireenhancing techniques and creative copulation positions, but contemporary Indians are so reticent about sexual matters that even buying condoms can be excruciating. “If someone is standing there in a medical store buying something else, someone won’t be able to say, ‘I want to buy condoms,’” says 28-year-old Mayur Masrani, the scion of a family of commodity exporters. “The shop has to be free from customers. Only then would they be able to buy condoms.” But Mr Masrani says young Indians are keen to explore their sexual sides — and ecommerce offers the ideal mechanism. In January, the entrepreneur launched Blissbasket, an online retailer dedicated to selling “romantic products”. Edible lingerie; chocolate and

strawberry body paint; sexy teddies, tight corsets and revealing g-strings; raspberry- and mango-flavoured lubricant, satin blindfolds, small handcuffs, sex toys and condoms are all on offer, as are naughty games, pulp fiction like Fifty Shades of Grey, an array of sexual manuals, and academic treatises on human sexuality. The imagery on Blissbasket’s homepage suggests its wares belong in a context of love, romance and joy. In one cartoon, a boy and girl smooch under a tree. “We are born to love and be loved,” the tagline reads, while another says, “couples who play together stay together”. “People are definitely looking for something quirky or raunchy to spice up their sex life, or romantic life,” Mr Masrani says. “They are not looking for hard core products. It’s more about romance.” The response, he says, is “fantastic”. Without advertising and relying on word of mouth, sales are

An adult board game on sale at Blissbasket

growing 40 per cent month on month, he reports. In November, the site received 650 orders, with an average value of Rs1,600 (£16), from big cities and small towns across India. Mr Masrani got the idea for Blissbasket after trying to buy edible lingerie in India for a newly married friend. Shopkeepers had never heard of the stuff, offering pornography instead. A year later, Blissbasket went live. “The category I am concentrating on is really sexual wellness,” he says. “It hasn’t existed in India before.” Blissbasket, funded entirely by its founder, is not the only etailer of bedroom paraphernalia. India’s biggest online marketplaces, Flipkart, Amazon and Snapdeal, offer sexual wellness products like condoms and pleasureenhancing sex toys. Still, Mr Masrani, who also supplies

items sold on Flipkart and Snapdeal, believes there is room for a dedicated site catering exclusively to Indian erotic desires. “Even in the medical profession, a generalist is one thing, and a specialist is something else,” he says. “We are specialists in this category.” Blissbasket emphasises protection of customers’ anonymity and privacy; its products arrive in a plain brown box with no identifying labels. It gives elaborate product descriptions suggesting how customers might use unfamiliar items and will discreetly answer common queries. Navigating India’s broad-brush obscenity law has been a challenge. Mr Masrani learned the hard way — by having an import consignment destroyed — that vibrators shaped like genitalia are banned in India, although “massagers” are all right. Blissbasket now sells around 500 different items, but expects to offer 1,200 items within the next two months. It is forecasting vigorous growth ahead. “It’s a perfect business for ecommerce,” says Mr Masrani. “There is no embarrassment factor.”

The Serial phenomenon has thrown podcasting back into the headlines in the past couple of months, spearheading a revival in downloadable episodic radio. If this intimate telling of a true-life murder investigation has piqued your interest in podcasts, there are many apps out there that can improve your listening experience, help you find new podcasts and manage them into playlists. But it’s a crowded market, so here are a handful that improve on the rather rudimentary Podcasts app that Apple bundles with every iPhone. Best for beginners: Overcast From the developer behind readit-later app Instapaper, Overcast puts customised playlists front and centre. The home screen is divided into playlists and a list of podcasts you subscribe to. If you connect your Twitter account, Overcast will suggest items that people you follow have listened to. An assortment of other lists can be followed with a single tap. Simple and intuitive, it is a good place to start for newcomers to podcasts, but its features feel limited next to many similar apps. Free, with extra features for $5; iOS only

Best for free: Instacast This solid, free app is unencumbered by banner ads. However, it falls a little short in design and it buries some of its features in a side menu. The home screen can be set to a list of podcasts you have subscribed to, or a list of their latest episodes, or unplayed downloads. You can receive alerts when new episodes are available for podcasts you subscribe to. To find new podcasts, tap through lists of genres, authors (including media groups) and the most popular with the app’s users. During listening, the player controls are clean and simple, with buttons for speeding up speech, setting a sleep timer or bookmarking a point to come back to later. Free, with extra features for $0.99, iOS only Best design: Castro For aficionados of a minimalist approach to software design, Castro is one of the slickest podcast apps, full of swipe-based controls that do away with navigation buttons wherever possible. Opening the app lands you straight in a list of most recent episodes — which I

prefer because it removes a step before you can start listening. The play screen has only a few buttons but does include a particularly good “scrubbing” control, where you pull a finger along the progress bar to skip to a different point. More advanced settings in a separate menu include accelerated or slowed-down playback speed with smoothed-out audio. However, you do have to have an idea already of what you want to listen to, since Castro does not make recommendations. $4, iOS only Best for personalisation: Stitcher Sign up, select a few podcasts you like, and this free app uses what it has learnt about you to make further suggestions. The results are presented a bit like Facebook’s news feed, with big images and the option to listen immediately or save it on a “listen later” playlist. Stitcher also allows you to browse new or “trending” shows, and also explore content according to usual categories. Playback includes a car-friendly option with supersized buttons you can jab without having to peer at them, as well as the option to give a “thumbs up” to help improve its recommendation algorithm. The only downside: banner ads that pop up from time to time. Free, iOS and Android Best overall: Pocket Casts Pocket Casts is a comprehensive but elegant podcasting app for both iPhone and Android. The home screen is a grid of a dozen or more podcast icons. Tap one, and a list of episodes appears, with the option to download, stream or add it to your queue of items to listen to. Swipe right from the home screen to see its “episode filters” list, which can be customised to include a subset of your subscriptions. A key feature is automatic downloading and notification of new episodes, so they are ready to play as soon as you open the app. Discovery is also a strong point. As well as browsing the top charts, groups of broadcasters and broad categories, the Pocket Casts team highlight interesting new podcasts that might otherwise go unnoticed. $4 iOS and Android

An ear for terrestrial radio

TuneIn Radio While podcasts are great for catching up with internet broadcasters, TuneIn brings the world’s traditional radio to your smartphone. This

popular free app offers more than 100,000 terrestrial stations to listen to live. Earlier this year it got an overhaul, making it easier to discover interesting radio from around the world and adding social-networking features, such as the ability to follow stations or see what friends are listening to.

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Friday 12 December 2014

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FINANCIAL TIMES

ARTS

A saga so stretched, even Wagner would call ‘cut!’ Hat-trick: Ian McKellen leads the charge in the final part of the ‘Hobbit’ trilogy. Below: Mosab Hassan Yousef in ‘The Green Prince’

CINEMA

Nigel Andrews

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he new technique in largescreen storytelling is to tell a whopper, then follow it with a prologue whopper no less whopping. The Hobbit trilogy, like the Star Wars prequels, suggests that the answer to “Can you have too much of a good thing?” is, first, “Yes”, then “What is the philosophical definition of a good thing?” Sometimes the same term, or almost same, has two opposite meanings. Take stupendous and stupefying. Thanks to the miracles of CGI and Peter Jackson’s imagination The Hobbit: The Battle of the Five Armies is both: a kind of twoand-a-half-hour frenzied swoon in which the special effects never stop, the gargantuanism never lets up, and a critic who has long since lost the plot (never knowingly having finished reading Tolkien as a youth) clutches at speeding dialogue like fly-by signposts. Unfortunately the dialogue this time is a mixture of embattled vernacular and Shakespearean name-soup. You need a knife and fork as well as spoon for all the Oakenshields, Arkenstones, Elvenkings. This isn’t the best script of the Tolkiens to date; in fact it’s the worst. Trippy in the wrong way; high on a kind of doper shorthand that assumes — possibly correctly — that paying devotees will recognise every name, rank, serial number and buzz-nomenclature. If not they will be left, like me, sorting the exclamatory leftover babble, usually uttered in midbattle. “Slaughter them all”; “There are too many of these buggers, Thorin, I hope you’ve got a plan . . . ” The series has started to look retro in the wrong way: retro Jackson, reaching back only into itself. The first trilogy had beautiful, often thrilling invocations of gothic artist-illustrators: Gustave Doré, Salvator Rosa, Arthur Rackham. The Hobbitsaga,remouldingthesamemulch,

The Hobbit: The Battle of the Five Armies (12A) Peter Jackson

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The Green Prince (15) Nadav Schirman

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Manakamana (U) Stephanie Spray, Pacho Velez

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Merchants of Doubt (12A) Robert Kenner

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stretches it towards twee one way, bombast the other. The opening scene’s dragon attack on Lake-town is a tour de force, but you have to like tourist-style force: a picture-postcard-Dickensian Nevertown bombed by a firebreather so show-off-hyperkinetic it spoils us for the remainingfull-lengththemeride. After that it’s an alternation almost regimented between quaint but fulsomely cosmeticised idylls or interludes — dwarves, designer-Hobbitish Martin Freeman, Shire epilogue — and cast-ofmillions battle scenes. Since we know these are conjurable on computer there’s little thrill of DeMille; more runof-de-mill as the turning wheel of Jackson’s invention produces ever the same waves of almighty action choreography. The massed militias moving into frame; the encircling mountains with skylined demi-monsters; the crunching, cleaving combat close-ups; the final triumph of good over evil. Even Richard Wagner knew when to stop. Thirteen hours, four operas: time to wrap. Peter Jackson has now done his Ring Cycle Part Two. Enough,

THIS EVENING’S TELEVISION

Pick of the day Wells, Wakefield and Southwark followed by Westminster Abbey last year, Salisbury choristers last month . . . Has the BBC gone cathedral mad? Still, the latest ecclesiastical delight trumps them all: we see the document to prove it, signed with William the illiterate Conqueror’s cross, giving supremacy to Canterbury over York. Canterbury Cathedral (BBC2 9pm) is busy and fact-filled. The run-up to last

Christmas heralded the Cathedral’s first ever girls’ choir in 1,400 years, a huge restoration on the crumbling south window, medieval glass touring to New York, and the boys’ choir inspecting a relic of Becket in sub-Arctic Norway. The banal and bloody, prosaic and predatory, jostle in Sightseers (C4 11.40pm), Ben Wheatley’s black comedy about tourists from hell. Brilliant or a mismatch? MARTIN HOYLE

BBC 1

BBC 2

ITV London

Channel 4

6.00 BBC News. 6.30 BBC Regional News Programmes. 7.00 The One Show. 7.30 The Two Ronnies Sketchbook. 8.00 EastEnders. 8.30 Citizen Khan. Shazia’s wedding day gets off to a bad start. 9.00 Have I Got News for You. Last in the series. 9.30 Not Going Out. The friends jet off on a summer holiday. 10.00 BBC News. 10.25 BBC Regional News and Weather. 10.35 The Graham Norton Show. 11.20 Cuckoo. Ken’s former professor passes away, but not before issuing a final wish. Comedy, starring Greg Davies. Previously shown on BBC3. 11.50 EastEnders. R

6.00 Eggheads. Dermot Murnaghan hosts. R 6.30 Strictly Come Dancing — It Takes Two. 7.00 The Home That Two Built. How BBC Two reflected shifting lifestyle trends during the 1990s and 2000s. Last in the series. 8.00 Mastermind. 8.30 Mary Berry’s Absolute Christmas Favourites. Part one of two. Recipes for the festive season. 9.00 Canterbury Cathedral. New series. Documentary series following a year in the life of the home of the Anglican church. 10.00 QI. 10.30 Newsnight. 11.00 Weather. 11.05 Never Mind the Buzzcocks. R 11.35 FILM Dead Poets Society.

6.00 ITV News London. 6.30 ITV News and Weather. 7.00 Emmerdale. 7.30 Coronation Street. 8.00 The Martin Lewis Money Show. The personal finance guru reveals tricks to save cash on festive train travel and presents the final update of the Festive Forecaster. 8.30 Coronation Street. 9.00 A Night in with Olly Murs. A musical extravaganza with the pop star, featuring some of his biggest hits. 10.00 ITV News at Ten and Weather. 10.30 ITV News London. 10.40 FILM Casino Royale. Spy thriller, starring Daniel Craig, Eva Green and Mads Mikkelsen.

6.00 The Simpsons. 6.30 Hollyoaks. 7.00 Channel 4 News. 8.00 Marvel’s Agents of SHIELD. Coulson and the team find themselves in a face-off against Hydra to uncover an ancient secret. 9.00 Gogglebox. Narrated by Caroline Aherne. 10.00 Alan Carr: Chatty Man. The host is joined by Stephen Fry and Clare Balding. Plus, Gorgon City perform with Jennifer Hudson. 11.05 Toast of London. Last in the series. R 11.40 FILM Sightseers. A timid woman with a sheltered life joins her new boyfriend on a caravanning holiday. Comedy horror, starring Alice Lowe and Steve Oram.

Regional variations apply

Other channels BBC3 7.00 Great Movie Mistakes 2: The Sequel. 7.15 Atlantis. 8.00 Motorway Cops. 9.00 Generation Sex: Secrets of South America. 10.00 Bad Education. 10.30 EastEnders. 11.00 Siblings. 11.30 Siblings. BBC4 7.00 World News Today. 7.30 Choir of the Year 2014. 9.00 Queen: Days of Our Lives. 10.00 Queen: Days of Our Lives. 11.00 Great American Rock Anthems: Turn It Up to 11. Channel 5 6.00 Home and Away. 6.30 5 News Tonight. 7.00 World Strongman Championship. 8.00 Ice Road

Truckers. 9.00 Ben Fogle: New Lives in the Wild. 10.00 Body of Proof. 10.55 NCIS: Los Angeles. 11.50 Access. More4 6.50 Location, Location, Location Australia. 7.55 Grand Designs. 9.00 Season of the Witch. 10.50 8 Out of 10 Cats. 11.40 Father Ted. Film4 7.15 How She Move. 9.00 This Means War. 10.55 Hobo with a Shotgun. Sky Atlantic 6.00 Blue Bloods. 7.00 Without a Trace. 8.00 David Attenborough’s Galapagos. 9.00 Blue Bloods. 10.00 House of Lies. 10.35 House

of Lies. 11.10 Curb Your Enthusiasm. 11.45 Urban Secrets. Sky Sports 1 6.00 Football’s Greatest Teams. 6.30 The Fantasy Football Club. 7.30 FL72 Live. 10.00 The Fantasy Football Club. 11.00 Barclays Premier League Preview. 11.30 One2Eleven: Adam Lallana and Steven Gerrard. 11.45 One2Eleven: Simon Mignolet and Eden Hazard. Sky 1 6.00 Futurama. 6.30 The Simpsons. 7.00 The Simpsons. 7.30 The Simpsons. 8.00 The Simpsons. 8.30 The Simpsons. 9.00 A League of Their Own. 10.00 An Idiot Abroad 2. 11.00 Britcam:

Emergency on Our Streets. Sky Arts 1 6.00 Portrait Artist of the Year 2014. 7.00 The Great Culture Quiz. 7.30 The Christmas Window Live. 7.45 Siouxsie Finale: The Last Mantaray. 9.00 Spandau Ballet: The Reformation Tour 2009. 11.30 Video Killed the Radio Star. Sky Arts 2 6.00 Oliver Twist. 7.00 The South Bank Show. 8.00 Mariinsky: The Nutcracker. 9.55 Dance Dance Dance: Men y Men. 10.00 Il Divo: Live in London. 11.20 South Bank Show Originals: Pete Townshend. 11.50 South Bank Show Originals: Mikhail Baryshnikov.

surely, for the present and for any foreseeable future. Nadav Schirman’s The Green Prince is a true-life thriller presented as narrative reconstruction surgery. It’s fascinating to watch and hear the documentary’s “hero”, Palestinian-born Israeli agent Mosab Hassan Yousef, tell his story to camera, in alternation with his secret service handler Gonen Ben Yitzhak. It enriches that fascination to have Schirman’s inter-threadings of historical film, surveillance footage and re-enactment scenes (lit and angled for teasing obliquity) as this tale of a turncoat Muslim asks questions more urgent today — arguably — than ever before. Should you be faithful to the family, people and religion you were born to? (Mosab was the son of a Hamas founder.) Or in a world of fanaticism and faith-licensed folly, should you “betray” the values of your background and their upholders? The question posed here is whether Israel is a milder, or more rational and enlightened, monster than Hamas. Yes, for the film’s

purposes. Food for feud outside it. As cinema it’s spellbinding. Mosab’s face, lit as if by the glow of an interrogation lamp, and Mosab’s voice, forceful and conviction-impelled until a momentary late cracking with emotion, make him an irresistible storyteller. And then there is the story: Le Carré for real, with twists, turns and those most telling torture scenes of all, the ones that put a man in a bare room, metaphorically speaking, and confront him with his conscience. What price a work of conceptual art if you can’t stand its concept? That’s what I thought during the first scenes of Manakamana. Then the film’s seemingly idiotic idea begins to seem holy-idiotic: mad, simple, incandescent, a Prince Myshkin of ideas. All that American filmmakers StephanieSprayandPachoVelezdois shoot 11 separate passenger journeys, each in an 11-minute take, up(duringthefilm’sfirst half) and then down a cable-car ride

to/from a Nepalese mountain shrine. It’s “pure cinema” to a degree delirious. One: the 11-minute trip exactly matches the capacity of a 16mm film reel. Two: the fixed-camera journeys in the car spool between turning-points just like a camera mechanism. Three: one lot of “passengers” in a viewing “vehicle” — we filmgoers — are watching for two hours another lot of ditto. If you feel such cinema should be made arrestable, sample it yourself to learn otherwise. What makes Manakamana sing — apart from the chant of cables punctuated by the rattle-clang sforzandi each time we skirt a pylon — is the human interest. Some passengers talk; others don’t talk but radiate thought, curiosity, preoccupation, rapture or just Buddhistic beatitude. One trip features goats; another, heavy metal rockers; a third, three talky old ladies unspooling, Norn-like, the story of the shrine’s god. All human life is here, and some meta-human, in an artistic container you never thought you’d travel in, or enjoy if you did. The most abused word in the media world is “experts”. If every expert on TV or in feature documentaries were a true expert, we’d be drowning in expertise like a Second Flood. But they’re not and we’re not. Down the decades, Merchants of Doubt argues and illustrates, charlatan scientists and scholars have been mobilised by the hand of oil or tobacco, this documentary’s villains, to retaliate against truth and true expertise — that cigarettes kill people and fossil fuels kill planets — with the expertise of pseudoscholastic scepticism. “There’s no evidence that . . . ”; “It’s only a theory that . . . ”; “Statistics can show that . . . ” Statistics can show that scoundrels are scoundrels; and that the only thing worse than someone crying wolf when there isn’t one is someone refusing to cry wolf when there is. Chastening; grimlyfunny;salutary.

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Friday 12 December 2014

Join the club Lending Club loan issuance mechanism after loan approval

Investors Borrowers Loan certificates

Twitter: @FTLex Email: [email protected]

Money

Technology, had filed for bankruptcy just months before. As for the Watch, when Apple lives happily ever after, its suppliers may or may not. All singlefunction components commoditise in the end. That, alas, is no fable.

Taiwan tech: the screen and the cycle Once upon a time, in a kingdom called Taiwan, lived many happy companies making electronics. They provided decent goods at low prices, more efficiently than anyone else. They were beloved by gadget sellers and consumers alike, even if the latter did not know the companies’ names, or even that they existed. At least the hard-working companies didn’t care for fame. In the early years, Taiwanese companies were very good at assembling laptops and computers. Margins were thin, but volumes were good. In later years, when smartphone sales were growing at more than 20 per cent a year and the sector was dominated by Samsung and Apple, times were even better. Component makers and assemblers did well (when Samsung and Apple said it was OK). One day, things changed: Chinese companies started making cheap phones. Sector growth looked likely to slow down and manufacturers had to work harder to keep up. Companies such as Largan (lenses) and Catcher (metal casings) and TSMC (semiconductors) produced products that were very hard to make, trendy or had many applications and profound economies of scale. These enjoyed 40 to 50 per cent gross margins. This made for happiness. Others made commodity components with specific applications. Screens, for instance, were a crowded business. With the TV market maturing, there was overcapacity. This was very sad. One part of the screen industry made good money: the touch function. Not many companies could make them. Those that could, such as TPK and Wintek, made gross margins in the mid teens. But in time that, too, changed. Touch became easier to integrate; TPK and Wintek were no longer so special. Worse, laptop touch screens did not catch on. Wintek suffered from overexpansion. TPK had spent about $500m on a big new plant due to open in 2014; it delayed opening the facility but it looked likely it would have to open in early 2015. This was sad, too. Two things could save TPK: adoption of sapphire displays or huge success for the Watch. TPK was hopeful, but the omens were not great. Apple’s sapphire screen partner, GT Advanced

Eurozone banks: horsing around Loan Investors’ certificates money

Miners: race to the bottom

Loan certificate Money

It takes about 45 days for an iron ore carrier to sail from Brazil to China. So the first fruits of Minas Rio should be arriving any day now. Anglo American spent $5bn to buy this mine and almost $9bn to develop it, incurring $4bn in impairments and losing a chief executive along the way, before it could ship the first 80,000 tonnes of ore in late October. Spot iron ore prices were $79 per tonne then. They have fallen by $10 while the ore was in the hold. And that, an investor might declare, is why Anglo American’s shares are changing hands for just 10 times next year’s forecast earnings, and will not be trading higher in the near future. Miners fed oversupply with their spending. They are reaping the results. BHP Billiton has lost $70bn in market capitalisation since the end of July, or nearly the entire value of another big iron ore miner, Rio Tinto. BHP also produces oil. But both it and Rio will keep the pedal to the metal with iron ore expansion next year. With four-tenths of its operating earnings from iron ore, Anglo will be affected by the flood of supply despite selling other commodities, too (and unusual ones, like diamonds). Anglo also promised investors that it could raise returns on capital employed to 15 per cent by 2016. That target has now retreated into the depths. It assumed $7.3bn of earnings before interest and tax by 2016, using spot prices from June 2013. Plug in the consensus for 2016 prices and ebit drops to $5bn for a 12 per cent ROCE. This might all be a repeat of the usual lesson of investing in miners. However much operational progress gets made — and finishing Minas Rio counts a lot — big commodity price drops can obscure it. True. But then, Minas Rio will not have to be built again (future impairments are another matter). Its ore is low cost to produce. Anglo may stay cheap. But its holes are

Issuing bank (LC subsidary) FT graphic. Source: company

Revolutions tend to eat their firstborn. Lending Club wants to lead a “peer-to-peer” lending revolution. The $9bn valuation it received when it floated yesterday (after a huge first-day pop) is astonishing. The company, after all, had just $160m in revenues over the past year. A multiple of 50 times sales is a bet that a company will take over a fastgrowing market. But the first mover does not always dominate. Lending Club is positioned for fast growth because it is not a bank at all, but a middleman. It is to banking as Uber is to cars: it brings people who want to borrow money together with those who want to lend. Nearly all its revenues are origination fees of about 4 per cent, on average, collected for

matchmaking. The borrower gets quicker approval than walking into a bank branch. Lenders can diversify across many borrowers, reducing credit risk. Lending returns are also good, approaching double-digits. The fees, and lack of balance sheet risk for Lending Club itself — that belongs to the lenders — makes this a simple, juicy business. Today, the consumer lending market covers nearly $2tn in loans. P2P hasn’t even scratched the surface with origination volume of just $9bn. But when the revolution is over, will Lending Club still be the leader? By listing first and getting attention for its novelty, it gains an advantage. But there are dozens of start-ups on its heels and those second movers will

learn from Lending Club’s mistakes (think of all the regulatory problems that Uber is running into). Traditional banks should not be too worried. Lending Club and its copycats have not had to weather a full credit and economic cycle. Higher rates or higher defaults could quickly diminish P2Ps appeal to lenders. And the lending market is so vast that P2P could be a collaborator with traditional financial institutions who could pawn off customers that it finds unprofitable to P2P. Mechanics aside, Lending Club has not justified its valuation. It is, essentially, a website. The irony is that the company has made a better case for lending through its platform than for investing in its equity.

dug. You cannot say that about BHP or Rio Tinto. And no matter how cheap iron ore gets, costs matter.

meanwhile, its strategy centres on increasing broadband penetration (70 per cent) and 4G mobile coverage (75 per cent). It has hinted that while it likes its position in Brazil, it is prepared to consider bids for TIM. This attitude toward Brazil keeps the pot simmering. Recent reports suggest that Spain’s Telefónica, along with Claro (owned by Carlos Slim’s América Móvil) and Oi might bid $15bn for TIM. This values TIM at seven times enterprise value to estimated earnings before interest, tax, depreciation and amortisation, according to Berenberg, a decent premium to the 5-6 times at which its Brazilian peers trade. TI should be greedy. Brazil represents a fifth of group ebitda, and even the modest profit there is stronger than what Italy offers. Yes,

consolidation is needed in the Brazilian telecoms market. Competition among the four big players is hot. But Moody’s points out that if TI acted as the consolidator in Brazil its credit rating would suffer. If TI cannot act as consolidator, it should entertain offers and be patient until a rich one comes in. It can afford to wait. According to Credit Suisse, TI will have free cash flow of more than €3bn this year and next. Net debt is less than 3 times ebitda — so while a big purchase would be a challenge, it needn’t rush to cut leverage. The proceeds from a deal could reduce debt, fund a payout and leave room for investment at home. TI’s shares have had a good run over the past year, up 38 per cent, well ahead of the MSCI European Telecoms index at 17 per cent. Stay at the table.

Telecom Italia: stewing nicely The slow-food movement started in 1986 as a protest against fast-food chains opening in Italy. Perhaps the time has now come for a slow company movement. Telecom Italia could be a founding member. It has good ingredients. It just needs them to come together in their own time. TI is Italy’s incumbent operator and owns two-thirds of the Brazilian mobile company TIM Participacoes, the country’s second largest. In Italy,

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Lending Club has orginated over $6bn of current loans. Borrowers use funds to refinance debt (60%), pay off credit cards (22%) and for business (2%). Almost 80% of lenders are institutional investors

Hamburg Helsinki Hong Kong Istanbul Jersey Lisbon London Los Angeles

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ACROSS 1 Piece of mathematics old geometers worked out – hard to penetrate it (6,7) 9 International organisation’s team is loose (going round in circles) (7) 10 Adroitness of female actually existing (7) 11 Girl collecting gold and hard white stuff (5) 12 So sincere about a big financial problem (9) 13 Good person feels irritation – result of surgical treatment? (8) 15 Moderate anger (6) 18 Quality of wood that is a bit twisted at one end (6) 19 Lifeless principal is a fishy type (8) 22 What may be on smartphone – pictures etc showing food (5,4) 24 Brush could alternatively be shrub (5) 25 Away team no longer in the changing room? (7) 26 See weed grow out of control – rodent will eat it (7) 27 Drivers into the ground make offensive comments to Upton Park players (13) DOWN 1 A university peters out after good reunions (7) 2 Me? I’d stop awful tyranny (9) 3 Overweight woman eating last bit of hamburger (5) 4 Cheaper and nastier item for wiping marble? (8)

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You can lead a horse to water. You can put the water in a tall glass, add ice, a wedge of lemon and a cute little paper umbrella. You can bring the bendy straw right up to the horse’s lips. But if the horse is not thirsty, it will not drink. Thus the eurozone’s banks took up only €130bn of the €317bn available in the second round of the European Central Bank’s targeted longer-term refinancing operations (TLTRO). This gives the banks very cheap loans (at 15 basis points) for four years as a way of encouraging lending to businesses. The banks showed more interest than in the first round (when €83bn was slurped up), yet the take-up fell short of forecasts of €170bn. Reluctance to take cheap money gives credence to the banks’ claim that low business lending is down to a lack of demand. An alternative explanation, advanced by RBS, is that the low takeup highlights the banks’ lack of capital. With capital buffers thin, they do not want the risk of small business lending. The €213bn taken across both parts of the TLTRO will not stretch far. It is tiny in the context of the eurozone’s banks, the 10 largest of which have a combined balance sheet of more than €11tn. Some of the money taken will be used to pay off other types of central bank liquidity. But it could make a difference in some places. In the first part of the TLTRO, much of the money went to banks on the periphery, where deposit rates are high and business lending is low. According to Morgan Stanley, deposit rates in Greece are almost 200 basis points (and even Italy is over 100). In that context, taking money from the ECB at 15 basis points should help to cut the cost of loans and so stimulate volume. But as a whole, €130bn of TLTRO money will not turn the eurozone’s banks, which are shuffling around like seaside donkeys, into racehorses. And the trainer, Mr Draghi, is getting to the end of his tether. He should stop messing around with water, and dip into his box of steroids. It’s the one with “QE” in big letters on the lid. Lex on the web For notes on today’s breaking stories go to www.ft.com/lex

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Friday 12 December 2014

Cheaper than Wonga Church’s credit union set for launch CITY INSIDER, PAGE 23

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Google shuts news service in Spain Move signals tougher line in face of hostile legal and political environment in Europe THOMAS HALE — MADRID MURAD AHMED — LONDON

Google is shutting down its news service in Spain in a defiant response to an increasingly hostile legal and political environment in Europe. The internet company said it was closing Google News in response to a law due to take effect in January that will force news aggregators to pay Spanish publishers a fee for content they link to. European publishing groups urged politicians not to back down, arguing that the Californian company’s drastic step was an attempt to whip up a “public outcry” against the measure. The move is a sign that Google is tak-

ing a tougher line against the avalanche of legal challenges it has faced in Europe, indicating it may withdraw services from the region if the regulatory climate becomes too inhospitable. Google separately said last night that it would close its engineering office in Russia and offer the mainly Russian engineers, who number less than 100, jobs in other countries. The move, first reported by tech news service The Information, follows an internet crackdown by Moscow, prompting warnings that it could provoke an exodus of engineering talent. Google said that it would keep its business and other activities in the country. Late in November, the European par-

liament voted for a motion calling on regulators to consider the break-up of the company. Although the move was symbolic, it was seen as an attempt to apply political pressure on the European Commission, which is considering an antitrust investigation into Google. On Wednesday, Google announced that its news service in Spain — news.google.es — would cease to exist on December 16. The rest of its operations in the country will be unaffected. “We’re incredibly sad to announce that, due to recent changes in Spanish law, we will be removing Spanish publishers from Google News and closing Google News in Spain,” said Richard Gingras, head of Google News.

European publishing groups argued Google’s step was an attempt to whip up a ‘public outcry’

Google News is distinct from the company’s search engine. It uses an algorithm to filter and present news tailored in both language and content to the location of the user. As such, it primarily links to stories from publishers in the country in which the reader is based. European publishers have been vocal proponents of restrictions on Google’s activities. Thomas Höppner, legal counsel to an informal coalition of European publishers, described Google’s decision as “a victory” that “shows the effectiveness of the Spanish law”. Additional reporting by Alex Barker and Duncan Robinson in Brussels and Richard Waters in San Francisco Editorial Comment page 12

Streamliner Europe aims for sleeker, safer trucks Big trucks on Europe’s roads could eventually look like this Concept S Aeroliner after new voluntary rules were agreed by EU governments to improve the environmental performance and safety features of the continent’s heavy transport vehicles. Designed by German truckmaker Man and trailer manufacturer Krone, the Concept S has the aerodynamic shape and lower panels that reduce both fuel consumption and the threat to pedestrians and cyclists of being dragged under or run over by the vehicle in a collision. Current brick-shaped lorries account for 25 per cent of road transport carbon dioxide emissions and almost 15 per cent of all fatal road collisions in Europe. But heavy lobbying by the truck industry won agreement that manufacturers will not be able to introduce new designs until 2022. They argued that the long lead time needed to produce new truck models required a delay in scrapping current mandatory regulations. European lorries tend to have short, high cabins with blunt front ends to comply with restrictions on weight and length, unlike the long-nosed shapes typical of US trucks.

Short View James Mackintosh Neither a borrower nor a lender be, said Shakespeare. Europe’s banks seem to be listening to the counsel of his character Polonius, refusing to take up their allocation of long-term money from the European Central Bank. This in spite of the fact that the interest rate of 0.15 per cent is well below that available to some of the cash-strapped peripheral governments which are part-owners of the ECB. Yesterday banks took up just €130bn of a possible €317bn, short of what had been already quite pessimistic forecasts from analysts. For the ECB this represents failure for the first of its two big projects since the summer that are designed to put some vim into the eurozone economy and boost inflation back towards its 2 per cent target. There are still six more targeted longer-term refinancing operations (TLTROs), so the ECB might get lucky. Against that, banks must repay €256bn from the original 2011-12 LTROs by February 26, tightening money in the region. The ECB said last week it “intended” to expand its balance sheet by €1tn, but both TLTROs and the paltry amounts of bank assets being bought under its second project make the goal look wildly optimistic. The original LTROs were popular, but banks were able to take the money and use it to buy high-yielding peripheral government bonds. The Italian 1-year bond yielded almost 6 per cent when the first LTRO loans were made; it now yields 0.4 per cent. Worse, with TLTROs, after a year banks are supposed to use the money to lend to small businesses, requiring capital they do not have to spare. The apparent failure of the TLTROs should make the ECB more likely to buy government bonds directly. But Germany’s objections remain unchanged; as Polonius put it, “borrowing dulls the edge of husbandry”. In today’s jargon, there is moral hazard in financing Italy. When the ECB meets next month, Greece may be on the brink of an election. With hard-left Syriza leading in the polls, it would be hard for the ECB to consider buying Greek bonds — yet doubly contentious to buy just non-Greek eurozone bonds. “Loan oft loses both itself and friend,” Polonius said. Friendship is already stretched between Europe’s north and south. Will the money be lost, too?

Free money out of favour Three-year LTROs and TLTROs (€bn)

Source: ECB

Industry wins delay page 20 [email protected]

Barclays and Deutsche Bank probed over suspected use of forex algorithms GINA CHON — WASHINGTON MARTIN ARNOLD — LONDON

Are the clouds beginning to part for Microsoft? Microsoft has become the biggest seller of cloud services to business customers, ahead of IBM and Oracle. It is a sign that under chief executive Satya Nadella, the world’s biggest software company is finally making headway as it looks beyond the PC era. Analysis i PAGE 19

New York’s top banking regulator is investigating whether Barclays and Deutsche Bank used algorithms to manipulate foreign exchange rates, which could raise the fines they face, a person familiar with the probe said. The state’s Department of Financial Services is reviewing whether the use of algorithms in bank currency trading suggests a systemic problem at the lenders, as opposed to wrongdoing by several rogue traders, the person said. If the algorithms are seen as a bankwide issue, the DFS could seek bigger penalties, the person added. The probe is one of the reasons why the DFS, led by

Benjamin Lawsky, declined to take part in a broad forex settlement with banks. In November, UBS, Citigroup, JPMorgan Chase, HSBC, Royal Bank of Scotland and Bank of America were fined more than $4bn for their role in a forex rate-rigging scandal. The UK’s Financial Conduct Authority and the US’s Commodity Futures Trading Commission were part of that settlement. But the US Department of Justice and the DFS were not and their investigations are continuing. The DoJ’s probe includes the six banks that were part of the broad settlement, and the investigation is expected to result in large fines and criminal findings. The DFS is investigating about a dozen banks. Deutsche said it had “received

requests for information from regulatory authorities that are investigating trading in the foreign exchange market. The bank is co-operating with those investigations, and will take disciplinary action with regards to individuals if merited.” Barclays declined to comment. The UK bank dropped out of the wider settlement reached in November at the last minute when it learnt that the DFS would not participate in that agreement. It is unclear whether other regulators are aware of the algorithms. They were discovered through the DFS’s bank monitoring system that it has set up at Barclays and Deutsche, the person familiar with the probe said.

Companies / Sectors / People Companies AOL....................................................................8 AbbVie...........................................................33 Airbus.............................................................18 Alliance Boots...........................................22 Amazon.......................................................4,8 American Airlines...................................24 América Móvil...........................................16 Apple.........................................10,11,16,19,20 Bank of America................................17,20 Bank of England........................................2 Barclays.........................................................17 Burberry.........................................................11 CNN.................................................................18 Campbell Soup.........................................32 Canary Wharf............................................23 Canon.............................................................10 Cargill..............................................................18 Carmignac....................................................32 Catcher .........................................................16 Cisco..................................................................8 Citibank........................................................24 Citigroup...........................................17,20,22 ConocoPhillips...........................................18 Daily Mail.....................................................18

Debenhams.................................................23 Delta Air Lines..........................................18 Deutsche Bank..........................................17 Dixons ............................................................11 eBay...................................................................8 Eli Lilly...........................................................33 Ericsson........................................................20 Eskom...............................................................8 ExxonMobil...................................................4 Flipkart..........................................................20 General Motors.........................................32 GlaxoSmithKline.......................................18 Glencore........................................................33 Goldman Sachs..................................20,22 Google........................................................11,17 HSBC.........................................................17,24 Hasbro...........................................................22 Hewlett-Packard......................................32 IBM....................................................................11 IGas..................................................................33 IOMart............................................................33 JPMorgan Chase...................17,20,22,24 Knight Frank..............................................24 Largan ..........................................................16 Legal & General.......................................33

© The Financial Times Limited 2014

Lending Club.......................................22,33 London Metal Exchange....................32 Lufthansa.......................................................8 Marks and Spencer..................................4 Merck..............................................................18 Microsoft...................................................8,19 Momo.............................................................33 Morgan Stanley.................................20,22 Moss Bros....................................................25 NML Capital...............................................32 Nasdaq..........................................................22 Netease.........................................................20 New York Times......................................18 Nissan............................................................10 Nutreco..........................................................18 Ocado.............................................................24 Office Depot...............................................33 Oi.......................................................................16 Philip Morris International................32 Pitney Bowes.............................................22 Prosper..........................................................22 Qatar Investment Authority.............23 Quindell.........................................................33 Renault ........................................................20 Rightmove...................................................24

Royal Bank of Scotland.......................17 SHV..................................................................18 Salesforce.....................................................32 Samsung................................................16,20 Shell...................................................................4 Shire................................................................33 Songbird Estates.....................................23 Sports Direct.............................................23 Staples...........................................................33 Starboard Value.......................................33 SuperGroup................................................23 TIM Participacoes...................................16 TPK..................................................................16 TSMC..............................................................16 Telecom Italia............................................16 Telefónica.....................................................16 Tesco........................................................23,24 The Guardian.............................................18 Toshiba..........................................................10 UBS..................................................................17 Uber................................................................22 Urban Outfitters......................................33 Volvo..............................................................20 Walgreens....................................................22 Washington Post.....................................18

Wintek.......................................................16,19 Wm Morrison.............................................24 Xiaomi...........................................................20 Yahoo.............................................................33 Zoopla ..........................................................24

Sectors Aerospace & Defence...........................18 Banks............................................17,20,22,32 Food & Drug..............................................18 Gen Financial......................................24,32 Gen Retailers............................4,23,24,25 Ind Transport.......................................17,20 Media.........................................................17,18 Mobile & Telecoms................................20 Real Estate...........................................23,24 Technology HW & Equ.................19,20 Travel & Leisure......................................18

People Ashley, Mike...............................................23 Baker, Gerry................................................18 Ballmer, Steve............................................19 Bloomberg, Michael...............................18 Brégier, Fabrice.........................................18 Costa, Ken...................................................23

Daly, Mary-Anne......................................23 Ecclestone, Bernie..................................25 Forsey, Dave..............................................23 Gingras, Richard.......................................17 Harald Wilhelm, ......................................18 Jacobson, Paul..........................................18 Laplanche, Renaud................................22 Lawsky, Benjamin....................................17 Lewis, Will....................................................18 Mack, John..................................................22 Macris, Achilles.........................................22 Meeker, Mary.............................................22 Micklethwait, John..................................18 Morris, Hans...............................................22 Nadella, Satya............................................19 Noto, Anthony..........................................24 Rashbass, Andrew..................................18 Simoes, Antonio......................................24 Skinner, James..........................................22 Thompson, Mark......................................18 Turness, Deborah....................................18 Vázquez, Jorge.........................................32 Wintour, Anna...........................................18 Yan, Tang....................................................20

Week 50

The low take-up of TLTROs is a failure of the first of the ECB’s two projects designed to put some vim into the eurozone economy

18

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FINANCIAL TIMES

Friday 12 December 2014

COMPANIES INSIDE BUSINESS

Commodities

MEDIA

Cargill to launch solo bid for Nutreco US trader asks for access to Dutch group’s books after dropping Permira The battle for Nutreco intensified yesterday after US agricultural trader Cargill announced that it would make a standalone bid for the Dutch fish and animal feed group. The move by the US commodities trading group comes after Nutreco agreed a €3bn offer from Dutch conglomerate SHV at €44.50 a share. Nutreco shares jumped almost 5 per cent to €46.90 on anticipation of a higher Cargill bid. The growth in demand for meat and fish as the world’s

population becomes richer has made Nutreco an attractive acquisition target. Nutreco had previously dismissed a joint offer made by Cargill and private equity group Permira on the grounds that it would lead to the break-up of the company. Nutreco also said the joint offer lacked details and refused to give the two companies access to its books in order to conduct due diligence. By working alone, privately held Cargill aims to buy Nutreco as a whole, removing the issue about a potential break-up. “After extensive study, we decided to continue on a standalone basis, and consider an offer for the whole of Nutreco,” Cargill said. “We believe we would be very good stewards of the Nutreco business in the interest of all stakeholders.” The agreement between Nutreco and

Aerospace

Travel & leisure

EMIKO TERAZONO — LONDON

SHV, a 118-year-old gas to retail conglomerate run by the Fentener van Vlissingen family, requires any counter bid to be 8 per cent higher than the existing offer of €44.50 a share. This means that Cargill will have to offer at least €48.06 a share. Cargill did not provide a value for its potential offer, saying that it needed access to Nutreco’s books before it could attach a price. “In order to understand whether Cargill can arrive at a proposition that would be attractive to all stakeholders, we have asked Nutreco to provide us access to due diligence,” it said. But Nutreco said Cargill’s communication, understood to have been made on Wednesday, was insufficient for the Dutch group to offer access to its books. It said: “We have not received a con-

€3bn Offer from Dutch conglomerate SHV that was agreed at €44.50 a share

€46.90 The Nutreco share price jumped 5% on anticipation of a Cargill bid

crete, written proposal that is likely to qualify or evolve to a competing offer. There is no doubt that it is clear to Cargill what will constitute a potential competing offer and what they need to do if they want to make a proposal that allows Nutreco to potentially engage.” Shareholders have been calling for Nutreco to open its books to Cargill. APG, a Dutch pension fund holding about 10 per cent of Nutreco said yesterday: “We expect that interested parties receive a fair and equal opportunity to bring out a substantiated offer.” Paul Koster, director of the VEB, the influential Dutch retail shareholders’ association, said: “This only increases the pressure on Nutreco to look seriously on how they are going to take this deal further.”

Matthew Garrahan

City that never sleeps wakes up to British media’s global reach

I

Airbus plays down fears over future of the A380 MICHAEL STOTHARD — PARIS

Shares in Airbus fell for a second day as management scrambled to reassure investors about the future of its superjumbo A380 project and its medium- to long-term financial prospects. The aerospace and defence group’s shares fell 10 per cent on Wednesday after it reined in earnings expectations for 2016 and Harald Wilhelm, chief financial officer, suggested Airbus could “discontinue” the A380 as early as 2018. Mr Wilhelm told analysts in London, without elaborating further, that Airbus would break even on the A380 through 2018, “if we would do something on the product, or even if we would discontinue the product”. Yesterday, following an angry reaction from some airline customers, Airbus sought to play down concerns that the A380 would be abandoned, instead emphasising that improving and modifying the superjumbo was the most likely scenario. The largest customer is Dubai-based Emirates Airline. Fabrice Brégier, who leads Airbus’ passenger jet division, said the development of a new engine as well as a stretch variant would happen “one day,” asking “where is the problem with the A380?” The four-engine A380 entered service in 2007 and since then has struggled to generate large sales. It has long prompted internal debate at Airbus about the future of the programme. As shares in Airbus fell 4 per cent yesterday, Airbus also sought to reassure investors about profitability, playing down concerns about cuts to production rates amid the transition from the A330 wide-body jet to a new version, called the A330 Neo. “Yes, there is a risk the [production] rate will come down, but this is not the point,” said Mr Wilhelm. “The point is that this is the way forward for the [A330] Neo that will then ramp up and that will provide a clear bridge into profitability.”

Falling fuel price set to boost Delta’s fortunes ROBERT WRIGHT — NEW YORK

Delta Air Lines expects lower fuel prices to produce an annual net cost benefit of $1.7bn, the company said yesterday, in the latest sign of how falling fuel prices are boosting the fortunes of big US carriers. Delta gave the estimate at an investor day in New York at which the company also said it expected pre-tax profit of $4.5bn in 2014, up $1.9bn compared with last year. The company’s shares surged almost 5 per cent on the announcements, to $48.38. Delta has taken an unusual approach to managing fuel prices by purchasing the Trainer oil refinery next to Philadelphia airport. Delta has also persevered with significantly older — and hence more fuelhungry — aircraft than other US airlines, betting that it can maintain the passenger jets better than competitors and therefore save on capital spending.

Strong path: Delta Air Lines’ decision to buy an oil refinery means it is likely to profit from this unusual approach to managing prices — Paul Sancya/AP

Paul Jacobson, chief financial officer, claimed both strategies were proving successful. The refinery — which has lost money heavily during periods after Delta bought it from ConocoPhillips in 2012 — was expected to contribute $70m to operating profit in the fourth quarter, and the company was successfully managing expenses. “I think we’re on a strong path,” Mr Jacobson said. “We’ve created a lot of value. We have a lot more value to create.” Delta and other US airlines have enjoyed sharply rebounding profitability in recent years as a series of mergers have reduced cut-throat competition, and the US economic recovery has encouraged travel. Delta said its cost per available seat mile excluding fuel expenses would rise by only 1 per cent for the last three months of 2014 compared with the fourth quarter last year. “The cost performance has been a

really terrific performance over the last couple of years,” Mr Jacobson said. However, Delta would increase its overall seating capacity by about 3.5 per cent in the fourth quarter compared with the same period last year. “We’re not so focused on cost discipline that we miss out on investing in the product,” Mr Jacobson said. The US airline industry still had considerable opportunities to improve its profitability given recent consolidation, he added. “We talk a lot about still being in the relative infancy of consolidation, learning to be comfortable in our own skin, learning to appreciate the economies of scale that this industry has never seen before,” Mr Jacobson said. Delta estimated that its distinctive fuel strategy should gain it an 8c to 10c per gallon advantage over competitors. It expected to pay an average $2.88 per gallon this year, against $2.97 for the wider industry.

Legal Notices

Airlines More news and analysis on airlines at FT.com/ travel-leisure

t is 50 years since The Beatles-led assault on the US pop charts was dubbed the “British invasion”, and three decades have passed since Colin Welland accepted his screenplay Oscar for Chariots of Fire with the rallying cry “The British are coming!” A group of Britons is once again leading a charge on a corner of US media but this time they have crossed the Atlantic to colonise the upper echelons of the news business, rather than music or movies. The latest member of this club is John Micklethwait, the editor of the Economist, who was hired by Michael Bloomberg this week to replace Matt Winkler as the editor-in-chief of Bloomberg News. Mr Micklethwait starts in New York early next year, where he will take over from one of journalism’s bestknown figures, overseeing 2,500 journalists in a deeppocketed news operation that is among the largest in the world. It will be a step change from his role at The Economist but if he finds himself pining for some British company, he will not have to look very far. Mark Thompson, the former director-general of the BBC, is a few blocks away in Manhattan at the New York Times headquarters on eighth Avenue, where he serves as chief executive. Closer still to Bloomberg’s Madison Avenue offices, is the Wall Street Journal, where Gerry Baker, a former Financial Times columnist, is editor. Mr Baker’s boss, Will Lewis, the chief executive of Dow Jones, is also British, as is Anna Wintour, editor in chief of Vogue, and Joanna Coles, the editor of Cosmopolitan magazine. Andrew Rashbass, the chief executive of Reuters (and a former chief executive of the Economist) is also a Brit. Though he is based in London, he oversees a huge newsroom in Times Square, while other stateside expats include Deborah Turness, the former editor of ITV News, who now heads NBC News. What explains the cluster of Britons at the top of USfocused media organisations? One factor could be the British newspaper market, where many of these journalists and executives cut their teeth. Despite the challenges facing print titles around the world, the UK newspaper sector remains vibrant. Some 20 daily and Sunday newspapers continue to The companies reach millions of readers in Britain, as they have done for searching for decades. The phone-hacking this digital elixir scandal dented confidence in Fleet Street and drew the are betting that world’s attention to sloppy UK-born standards and practices and, in some cases, criminal journalists may behaviour. But competition have the answers is still fierce. UK journalism has in they need recent years looked beyond its borders for growth. Until now, that has not been as big a concern for newspapers and television networks based in the US. The Guardian and the Daily Mail each launched web operations tailored for global readers. Now both online titles are challenging the New York Times, CNN and Washington Post as the world’s most viewed news brands. They are also making their presence felt stateside: the Daily Mail’s online celebrity coverage regularly trumps its US tabloid competition while the Guardian this year won a Pulitzer Prize, the highest honour in American journalism, for its coverage of the Edward Snowden leaks. US-based news operations have belatedly realised that they too must look abroad. Last year the International Herald Tribune was rebranded by its owner, the New York Times, in one of Mr Thompson’s first moves as chief executive. The paper took the Times’ name as part of a move towards what the company called “a global monobrand”. More importantly, US news groups also realise that their future depends on a winning online strategy. The companies searching for this digital elixir are betting that UKborn journalists may have the answers they need: at the BBC, Mr Thompson launched the popular iPlayer — a success his board at the New York Times would no doubt love him to replicate. Mr Micklethwait, meanwhile, has won plaudits for the digital initiatives he introduced at the Economist, which is part owned by the Financial Times Group. Mr Bloomberg said his new hire had done “an exceptional job” leading the magazine into the “digital age”: the magazine has 1.6m print subscribers, including 164,000 digital-only subscribers. Maybe the trend won’t last and the British news invasion will end as soon as it began. I am not so sure. They may not turn out to be the news equivalent of The Beatles. But if the big US news operations are looking for a coherent digital strategy and international growth, they could clearly do a lot worse than recruiting across the Atlantic. [email protected]

Pharmaceuticals

Ebola vaccine trial suspended DAVID CROW — NEW YORK

The race to stem the spread of Ebola suffered a setback yesterday when researchers suspended a clinical trial of a new vaccine, and US officials said an American nurse with exposure to the disease would be admitted to a special treatment facility. The phase one study to assess the safety of the vaccine, which is being developed by Merck and NewLink Genetics, was stopped a week early after four out of 59 volunteers complained of pains in their hands and feet. “They are all fine and being monitored regularly,” said a statement from

the University of Geneva Hospital, where the trial is being conducted. It came as the US National Institutes of Health said it expected to admit an American nurse — who was exposed to the virus in Sierra Leone — to a special clinical unit in Maryland. If confirmed, the patient would become the fifth person to be diagnosed with Ebola in the US. Sierra Leone has overtaken Liberia as the country with the highest number of cases in west Africa, with 7,897 reported since the start of the outbreak. Swiss researchers said they planned to resume the trial of the vaccine in January after checks to ensure the joint pain was “benign and temporary”.

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Friday 12 December 2014

19

FINANCIAL TIMES

COMPANIES

Risks high as Microsoft passes cloud milestone World’s biggest software company makes up for lost time with a business overhaul to take it beyond the PC era RICHARD WATERS — SAN FRANCISCO

Microsoft has just passed a milestone in its business overhaul for the cloud computing age. As this year closes, it has become the biggest seller of cloud services to business customers, vaulting past start-ups such as Salesforce.com and outpacing IBM and Oracle. While cloud services account for less than 5 per cent of revenues, the milestone is a sign that the world’s biggest software company is finally making headway as it looks beyond the PC era. But the risks are high. Microsoft’s years of dominance relied on tying much of the tech world to its Windows PC operating system. The business model built on Windows is now being picked apart — and the person doing the picking is none other than Satya Nadella, the company’s recently installed chief executive. “It’s not easy to let go of your proprietary roots,” says Rick Sherlund, software analyst at Nomura Securities. “We don’t know how much this will hurt yet. But he has to do it.” Wall Street has chosen to look on the bright side. After more than a decade stuck in a narrow range, Microsoft’s stock price has risen nearly 50 per cent in the 16 months since former chief executive Steve Ballmer announced he would step aside. As the company’s biggest individual shareholder Mr Ballmer — who was blamed by Microsoft’s board for missing out in the smartphone and tablet markets — has made more than $5bn from the bounce. To reinforce the shift from Windows and lay the foundation for a new Microsoft, Mr Nadella has taken several steps to open up its technology: a strategy that once would have been perceived as heretical by company insiders. They include releasing a free version of Office, the company’s biggest moneyearner, to users of Apple’s iPad in order to prevent them defecting to rival services. Since retail consumers make up only a small part of the Office business and the software has largely missed the tablet revolution, giving the tablet software away was a mainly defensive gesture to protect a vulnerable flank. As such, it echoed Mr Nadella’s previous announcement that Windows would be free for smartphones — another market where the software was largely absent. But the symbolism is striking. In another reversal, Microsoft last month made a core piece of the technology on which its broader ecosystem is based available to other developers. Under Mr Nadella, it has negotiated integration deals with rival cloud companies including Salesforce and Dropbox. The goal is to stimulate greater use of Microsoft’s online services, even if that reduces demand for its other software. Mr Nadella is under pressure to show that he can back up moves like these, which are bringing an end to the closed technology world Microsoft once inhabited, with some real product innovation. Stepping away from the safety of its eroding PC monopoly is forcing deeper cultural change as the company faces up to demands of competing head-on with the likes of Google, Apple and Amazon. Microsoft’s deepest inroads into the cloud have come with Office 365, the cloud-based version of the productivity software. “I’ve been impressed by how rapidly they’ve been able to change their business model since Satya took over,” says Brett Taylor, a former Facebook chief technology officer and head of Quip, one of several start-ups hoping to reinvent productivity software for the cloud and mobile era. But rivals like Mr Taylor argue that even offering Office for free will not help Microsoft make up for lost time. The Office approach to productivity, which puts documents at the centre, does not suit the mobile workforce, he says. Instead, collaboration between workers

Silver lining

Reversal of fortunes Silverlight U-turn cuts the ties with Windows

Cloud services sales 2014 Microsoft

$5.6bn

Salesforce.com

$5.2bn

Revenues (% share)

Armed police surrounded the plants in the city of Dongguan as workers collected final pay this week, while suppliers demonstrated in front of the factories. Wintek declined to comment. The company sought insolvency protection in October, filing in Taiwan for a restructuring of more than NT30bn ($961m) in debts owed to local and mainland lenders and suppliers. Wintek

(estimate)

2012

2016 (forecast)

Office 365 and other cloud services

Consumer and devices*

Microsoft share price ($)

6.2 Total revenue 43.7

$74bn

Phone hardware Rest of commercial licensing

39.8

Consumer and devices*

15.1

50

Office 365 and other cloud services

45 40

9.2 Rest of commercial licensing

Total revenue

$101bn 35.9

35 30

35.9

25 Jan

*ex phone hardware FT graphic. Sources: Nomura; Thomson Reuters Datastream

is being achieved using communicationbased tools that “push” information to people when they need it. Acquisitions intended to make Microsoft more relevant, like the Skype internet calling service and Yammer enterprise social network, have “sunk without a trace”, says Michael Cusumano, a professor at the Massachusetts Institute of Technology. Microsoft is also moving faster as it tries to overhaul its software, after years of being plagued with sluggish development. Changes to Office announced only months ago are already appearing in the product, says Rob Helm, an analyst at Directions on Microsoft, an independent research firm. “Someone’s really goosed it up,” he says. With new ideas like its experimental “Office social graph”, Microsoft is also

‘I’ve been impressed by how rapidly [Microsoft has] been able to change [its] business model’ trying to find ways to “identify relevant information and push it to you”, adds Mr Cusumano — for instance by automatically sending notes ahead of a meeting based on things like the subject matter and who will be present. Microsoft’s second push into the cloud involves creating a technology platform on which other services can run. While Mr Nadella was head of the company’s cloud business, he took a critical decision to extend this platform, repositioning it to compete with industry leader Amazon in selling things such as raw computing power and storage

capacity. This so-called “infrastructure as a service” business has been the scene of a vicious price war, as Google and Amazon have driven down prices. Mr Nadella, for his part, seems happy to go along for the ride, in the hope Microsoft will be one of only a few companies that can stay the distance. He suggests profits will be made in the “platform as a service” business that rides on top of the infrastructure. Wall Street’s fears that overall profit margins from the cloud would be far lower than the traditional software business have receded somewhat as the business has started to reach larger scale, says Mr Sherlund at Nomura. The shift to the cloud is likely to take years. Only about 2m of the 8m servers sold each year are bought by cloud companies, Mr Nadella says. The rest end up inside corporate data centres, many of them running Microsoft software. The company’s main advantage, he adds, will be having the scale and range of technologies to support the messy IT needs of modern corporations, which need to run a range of applications for workforces spread around the world using a mix of the cloud and traditional data centres. That predication suggests that Microsoft’s future looks much like IBM’s did at the end of the mainframe era. While the “post-PC” age has arrived, software for PCs and servers built with PC technology will remain a key ingredient of IT systems, just as mainframes are still estimated to account for more than a third of IBM’s profits. But even if this guarantees Microsoft’s longevity, its new CEO has made clear that he believes growth — and long-term relevance in the tech world — lies in a more decisive move to the cloud.

Apple supplier Wintek shuts China plants Taiwanese group Wintek, formerly a major supplier of touchscreens for Apple’s iPhone and iPad, has shuttered two plants in southern China and axed 7,000 jobs, leaving unpaid suppliers to chase debts of Rmb230m ($37m).

$4.7bn

Satya Nadella, Microsoft’s recently installed chief

Technology

CHARLES CLOVER — BEIJING

Four years ago, Microsoft’s decision to kill off its Silverlight technology highlighted a familiar “Windows first” dynamic inside the company. Silverlight had been developed to compete with Adobe’s Flash by enabling developers to write applications that run on any software platform, not just Windows. But a power battle in the company led to it being sidelined, said Jeffrey Hammond, an analyst at Forrester Research. “The Windows group killed [Silverlight] deader than a doornail,” he said. It was a notorious example of Microsoft’s “Windows tax”, the price

Amazon Web Services

reported a loss of NT$10bn for 2013 and a NT$3bn loss in the first half this year. The Taipei-listed company was once one of the main suppliers for Apple, but placed a bet that failed after Apple selected a rival touchscreen in late 2012. The episode represents a cautionary tale for high-tech manufacturers in southern China who aspire to being an official Apple supplier. While Wintek was the largest supplier of touchscreens for the iPhone 4, Apple switched to a different technology in 2012 for its iPhone 5, eliminating much of Apple’s need for Wintek’s technology. In 2013, Apple then opted for film touch panels in its iPads, rather than the glass touch panels made by Wintek.

Apple still lists a Wintek facility in Suzhou, near Shanghai, as a supplier, but not any of its Dongguan plants. Jerry Chen from Shenzhen Laibao Hitech, another touchscreen maker, said, such incidents are common “although it did come a bit suddenly with Wintek”. “It mostly has to do with the growing competition and lower margins. Before there used to be two to three companies sharing a single order and now there may be as many as 10,” he said. But he said the plant closures did not necessarily mean Wintek was obsolete, as it still made the leading technology in “on glass solution” (OGS) touchscreens. Wintek’s shares were suspended in mid-November at NT$1.83.

2013

2014

Dec

other divisions in the company have historically paid to protect the primacy of the operating system. Last month, under Satya Nadella, Microsoft effectively reversed the Silverlight move. It released a software framework called .Net — used by millions of developers who write applications that run on its software platforms — to the open source world, thereby cutting the inseparable bond with Windows. Retaining the loyalty of developers is essential to Microsoft. That could make the decision to set .Net free a key step in the shift to cloud computing, Mr Hammond said.

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FINANCIAL TIMES

Friday 12 December 2014

COMPANIES Industrial transport

Mobile & telecoms

Industry wins delay to EU truck shake-up

India sales ban poses threat to Xiaomi expansion

New rules spell end of road for environmentally inefficient vehicles ANDY SHARMAN —MOTOR INDUSTRY CORRESPONDENT

European Union governments have agreed new rules that should bring an end to the brick-shaped trucks that campaign groups say are environmentally inefficient and endanger other road users. But fierce industry lobbying put back implementation of the measures by five years, including a three-year morato-

rium, despite the rules being voluntary. Current regulations on truck weights and dimensions restrict the length of heavy goods vehicles. To maximise cargo space truckmakers design short cabins with drivers in towering cockpits over the engine and front axle. This creates dangerous blind spots and blunt front ends, critics say, increasing the risk of fatal accidents with pedestrians and cyclists. Trucks are twice as deadly as other vehicles in countries such as the UK, France and Sweden, according to the European Transport Safety Council, and heavy goods vehicles accounted for 14 per cent of all fatal collisions in Europe in 2011.

The new rules will allow the front cabins to be 80cm-90cm longer, bringing European trucks closer to their US counterparts — which have extended bonnets and tend to be about 1.5m Brick-shaped trucks have blind spots that increase the risk of fatal accidents, critics say

longer. This should lead to curved, more streamlined noses, which campaigners say would improve pedestrian protection and increase the driver’s field of

view by 50 per cent. The new rules will also allow for aerodynamic flaps at the rear of the vehicle, which are used in the US and guide airflow around the vehicle. While trucks make up only 3 per cent of vehicles in Europe, they account for 25 per cent of road transport carbon dioxide emissions, according to Transport & Environment, a think-tank. “This is a big thing that’s going to happen to trucks — it’s a fundamental change to an industry that’s fairly conservative,” said William Todts, senior policy officer at T&E. Brussels had planned to phase in the rules from 2017. But France and Sweden won a delay to 2022. The two countries

— home to truckmakers Renault and Volvo, which only recently launched new model ranges — had been seeking to delay the rules until 2025. Member states will meet later this month to formally approve the rules but finalisation of the legislation will not come until 2019, followed by the threeyear moratorium. Acea, the European automotive manufacturers’ trade body, said that while the industry was “fully committed to improving fuel efficiency and safety”, the three-year lead time — from finalising the rules in 2019 to implementation in 2022 — would still be “challenging” for truckmakers to meet.

Banks. Capital buffers

Fed’s push for safety tests the business model at US banks Drastic changes might be needed to earn equity returns that satisfy shareholders TOM BRAITHWAITE — NEW YORK

Jamie Dimon has long laid claim to a “fortress balance sheet”. Even before he ran JPMorgan Chase, as chief executive of Bank One in Chicago in 2002, he bragged about capital. “We talk consistently and all the time about this fortress balance sheet, and we really mean it,” he said later, after becoming chief of JPMorgan. “And we call it a strategic imperative, not just a philosophical position. “We are trying always to be very forward-looking and maintain a strong balance sheet,” he said. “We were getting this company’s balance sheet prepared for a tough time.” The tough time came, JPMorgan survived, albeit with the help of Federal Reserve emergency measures, and for a while Mr Dimon was lauded as the banker who got it right. But now JPMorgan has a $22bn capital shortfall, according to a new assessment by the Fed, which has been steadily ratcheting up its capital requirements since the financial crisis. The question for all US banks is whether the Fed’s drive for higher capital has further to run and whether they will have to change their business models drastically to earn a return on equity that satisfies shareholders. According to the banks — though not

all of the capital hawks — regulators, particularly in the US, have come a long way already in increasing the lossabsorbing capacity of the system. The international Basel II rules required banks to hold 2 per cent of common equity against risk-weighted assets. The new Basel III standard announced in 2010 requires a 7 per cent capital ratio by 2019. The tightening was more severe than that implies because the “risk weights”, which oblige banks to hold more capital against the riskiest assets, were also made tougher. In 2011, the institutions deemed most systemically important were told to go further — holding an additional 2.5 per cent in common equity. This week, the Fed announced that the biggest US institutions will have to hold even more common equity, taking JPMorgan to 11.5 per cent, Citigroup to 10.5 per cent and Morgan Stanley, Goldman Sachs and Bank of America to 9.5 per cent. There could still be more to come. The one known unknown, which the Fed has acknowledged as such, is whether banks will be forced to maintain these capital levels during annual stress tests, which subject balance sheets to a hypothetical economic disaster and see how they fare. If JPMorgan is expected to maintain an 11.5 per cent capital ratio during a financial crisis, then it will have to add even more to its peacetime levels. Banks which look to have already reached the new minimum levels might yet be caught short. It would also bring the US closer to the much higher levels of capital demanded by campaigners such as Sherrod Brown,

‘If they didn’t have the safety nets that they do . . . they couldn’t live’

the Democratic senator, Tom Hoenig, the vice-chairman of the Federal Deposit Insurance Corporation, and Anat Admati, the Stanford University professor and co-author of The Bankers’ New Clothes, a book demanding higher capital levels. The new rules raise questions about whether business models will have to change to adapt. Most banks are barely earning their cost of capital, estimated at 10-12 per cent; some, such as Citi and Morgan Stanley, are not even there yet. Adding more equity depresses ROE and makes it more challenging to satisfy investors. If banks become smaller and simpler they should benefit from a smaller capital requirement. But JPMorgan is not

The biggest US institutions will have to hold even more common equity, taking JPMorgan to 11.5 per cent Spencer Platt/Getty Images

willing to yield just yet. “We would clearly like to be able to reduce the surcharge,” said Marianne Lake, chief financial officer, on Wednesday. “And if that is possible, we will do it, but we are not looking to do that at the cost of making more than surgical changes to our business strategy.” Ms Admati said: “It’s a feature, not a bug, if they end up simplifying their structures under pressure from investors.” She argued that it is only the implicit backing of the government that allows banks to operate with so much debt in the first place. “Companies in this state of funding, with these kind of balance sheets, if they didn’t have the safety nets that they do . . . they couldn’t live.”

JAMES CRABTREE — MUMBAI CHARLES CLOVER — BEIJING

A patent dispute has dealt a blow to Xiaomi’s international expansion, leaving the fast-growing Chinese smartphone maker facing a temporary ban on sales in India and further pressure on margins. Xiaomi, anointed a valuation in excess of $40bn at its latest fundraising in November, is keen to replicate its popularity in China into other major emerging markets. In April it unveiled plans to expand into as many as 10 foreign markets. However, a Delhi High Court case suggests that this march abroad may also open it to more patent disputes, with companies demanding it pay royalties — something that rivals are less keen to pursue in China where claims are harder to press. Such payments would, in turn, eat into margins or drive up handset prices. In a ruling on a patent dispute with technology group Ericsson, the court ordered Xiaomi to suspend sales until February, pending a further hearing relating to its dispute with the Swedish company. Wednesday’s ruling stated that Xiaomi was “restrained from manufacturing, assembling, importing, selling or advertising” its products in India pending a further hearing, while India’s customs authorities were “directed not to allow the import” of mobiles and other products that may infringe Ericsson’s patents. Without a trove of its own patents, manufacturers such as Xiaomi could ultimately see their costs inflated by 5-20 per cent due to licensing fees, according to some experts. Xiaomi says it acquired 1,141 patents last year, a number considered unimpressive in the tech industry. Experts said this appeared to be the first patent litigation targeting Xiaomi since it outlined plans to launch into up to 10 foreign markets. “It looks like Xiaomi is experiencing a bit of culture shock in India,” said Wang Yanhui, secretary-general of the Mobile Phone China Alliance, an industry lobbying group. He said Xiaomi was not the first Chinese smartphone maker to be sued in India, however, it was the first time imports had been halted. The Delhi court ruling is likely to raise new concerns about possible intellectual property challenges affecting other Chinese smartphone and device makers — a group that includes Huawei, ZTE and Lenovo, analysts said. Manu Jain, head of Xiaomi in India, said the group had not received official notification of the ruling from the court, but that its legal team was “evaluating the situation”.

Technology

Momo dating app founder accused of stealing ideas CHARLES CLOVER — BEIJING

Chinese internet group Netease has accused a former employee, and now rival, of misconduct and corruption, just days before his new company is poised to launch a $230m initial public offering on Nasdaq. Netease, the gaming group that operates World of Warcraft in China, accused Tang Yan, chief executive and founder of dating app Momo, of stealing ideas and technology during his eight years at the company. In a move that could throw a spanner in Momo’s forthcoming IPO, New Yorklisted Netease, which has a market capitalisation of $13bn, claimed that Mr Tang “took advantage of his post to acquire various information and technological resources to help establish Momo”. Launched in 2011 while Mr Tang was still at Netease, Momo is a dating app similar to Tinder, and has become one of the hottest mobile phone apps in China. The app claims it has 180.3m registered accounts, 60.2m monthly active users, and 2.3m paying membership subscribers, according to the IPO filing as of September 2014. One of its investors is ecommerce group Alibaba, which has been trying without success to launch a smartphone chat and instant messenger to compete with WeChat, owned by rival Tencent. The timing of the statement by Netease appeared designed to delay or scupper the IPO — characteristics of the scorched earth tactics common in the competitive Chinese internet market. Mr Tang launched Momo in August

2011, a month before he left Netease, where he worked in a variety of management jobs. Netease also claimed Mr Tang awarded lucrative contracts to a company founded by his wife during that period. Mr Tang “delivered commercial benefits that are worth more than Rmb1m [$160m] to a Beijing advertising company founded by his wife, Zhang Sichuan — conduct that gave rise to suspicion of non-governmental corruption,” Netease said. In a filing to US securities regulators, Momo said Mr Tang would “vigorously defend himself” against the allegations,

$230m

180.3m

Forecast value of Momo’s initial public offering on Nasdaq

The number of registered accounts Momo says it has

but refused to comment further, citing a quiet period ahead of the IPO. The company did, however, say Mr Tang may address the Netease allegations in the US. Momo meaning “unacquainted” in Chinese, may face other legal challenges for the use of the name. Another Chinese company has said it intends to sue Momo. Hangzhou Momo Wedding Service Company, which describes itself as a web-based business aimed at Chinese parents trying to marry off their single offspring, said in November that the smartphone app had stolen its name. The company is seeking Rmb11m in damages and exclusive use of the brand.

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Friday 12 December 2014

COMPANIES General financial

Banks

Lending Club leaps 65% on New York debut

FCA fights identity ruling over London Whale’s boss

Listing viewed as a coming of age moment for the peer-to-peer industry

Lending Club, the San Francisco start-up that set out to bypass traditional banking, captured the attention of Wall Street yesterday as it listed on the New York Stock Exchange and promptly shot to a valuation of $8.9bn. Shares in the world’s biggest peer-topeer lender began trading at $24.75 yesterday, delivering an instant 65 per cent gain to investors who bought in at the listing price and valuing Lending Club

above S&P 500 constituents such as Nasdaq, Pitney Bowes and Hasbro. They closed at $23.43. “It is a good day for Lending Club,” said Larry Summers, the former US Treasury secretary who sits on the company’s board and whose 1m shares are now worth almost $25m. “It’s not the beginning of the end, but it is perhaps the end of the beginning.” The listing is widely viewed as a coming of age moment for the entire peerto-peer, or marketplace lending, industry. Already two other alternative lenders — OnDeck and SoFi — are waiting in the wings for their own IPOs. “It’s a watershed moment in terms of awareness,” said Matt Burton, founder and chief executive of Orchard, which is

Mobile & telecoms

Food & drug retailers

TRACY ALLOWAY AND ERIC PLATT — NEW YORK

‘It’s not the beginning of the end, but it is perhaps the end of the beginning’

working to build a secondary trading market for P2P loans. Lending Club sold 58m shares at $15 apiece on Wednesday evening, valuing it at $5.4bn in an initial public offering that was many times subscribed. In its first 10 minutes of trading, nearly 17m shares changed hands, or about 30 per cent of the free float. Morgan Stanley and Goldman Sachs, which led the underwriting, increased the size of the listing at the last minute, and could lift the final amount of capital raised to just above $1bn. Proceeds from the deal, which the company said will be used to “increase our capitalisation and financial flexibility”, hit $870m and were to be shared between the company and selling shareholders. The exterior of the NYSE was

58m Number of shares Lending Club sold on Wednesday evening

17m Number of shares that changed hands in the first 10 minutes of trade

festooned in a Lending Club-themed light installation. Inside, chief executive Renaud Laplanche mingled with board members and early investors including Mary Meeker, the famed technology analyst who works for venture capital investor Kleiner, Perkins, Caulfield and Byers, John Mack, the former Morgan Stanley chief executive, and Hans Morris, the long-time Citigroup banker and former president of Visa who also sits on Lending Club’s board. Wearing a red jacket with the words “captain” emblazoned on the back — a nod to his experience as a competitive sailor — Mr Laplanche said: “I think we are just getting started.” Additional reporting by Arash Massoudi See Lex

D Telekom prospectus error ‘misled investors’ JEEVAN VASAGAR — BERLIN

Thousands of small investors achieved a partial victory yesterday when Germany’s highest court ruled that Deutsche Telekom had misled potential shareholders over its flotation prospectus. The initial public offering was a pivotal moment in Germany, transforming normally cautious investors into enthusiastic buyers of a stock marketed as the “Volksaktie” — “the people’s share”. But after the IPO, Deutsche Telekom announced a writedown on its property portfolio, prompting a slump in the share price. About 17,000 retail investors are suing Deutsche Telekom, alleging flaws in the prospectus in 2000. Germany’s Federal Court of Justice ruled partially in the investors’ favour yesterday. The court said that it “affirms an error in the prospectus in relation to the internal transfer of shares held in the US telecoms company Sprint”. Lawyers for the investors, who are seeking €80m in compensation, said it paved the way for damages. The former state monopoly was partially privatised in three capital issues in the 1990s and 2000. In the final raising of capital, 200m shares were sold at €66.50, raising €13bn in total proceeds. Before the final capital issue, Deutsche Telekom booked a capital gain of €8.2bn for the sale of its stake in Sprint. The court’s statement said this was “objectively false”, as the shares were not sold but transferred to a Deutsche Telekom subsidiary. The prospectus should have explained that Deutsche Telekom continued to bear the risk of a fall in the price of Sprint shares, the court said. “Even an informed investor could not have deduced the ownership of the stake in 1999, and the accompanying risks,” the court statement said. The court accepted the decision of a lower court, which found that Deutsche Telekom had not overvalued its property portfolio in its IPO prospectus. The Federal Court of Justice referred the case back to a regional court in Frankfurt to rule on “causation and culpability”. The lower court will rule on any damages. Andreas Tilp, a lawyer for the investors, said the ruling was a “historic victory” for German investors. Deutsche Telekom expressed “regret” at the finding, adding that it was “confident the courts will determine that there is no liability for damages”. Its shares closed up 1 per cent at €13.04.

Pessina steps in as chief of Walgreens Boots Alliance JOHN AGLIONBY

Stefano Pessina, the billionaire executive chairman of Alliance Boots and a board member of Walgreens, will initially serve as interim chief executive when the two pharmacy chains merge but still plans to return to a strategy role. Boots declined to give new specifics but pointed to an earlier announcement that Mr Pessina, 73, will serve as executive vice-chairman of the combined USbased company. He will be responsible for strategy and dealmaking and chair a new board-level strategy committee. Ornella Barra, Mr Pessina’s long-term partner and chief executive of wholesale and brands at Alliance Boots, is still set to become executive vice-president of Walgreens Boots Alliance, as the combined company will be known. Ms Barra will also serve as president and chief executive of global wholesale and international retail. Walgreens announced on Wednesday that Mr Pessina would temporar-

Stefano Pessina will take the helm after the two pharmacy chains merge while the search gets under way for a permanent chief Daniel Acker/Bloomberg,

ily head the combined group because Greg Wasson, Walgreens’ president and chief executive, plans to retire after the merger is completed. The move is a reversal of earlier plans to have Mr Wasson run the combined group. Walgreens will acquire the 55 per cent of Boots that it does not already own as early as February 2015 following a Walgreens shareholder vote on December 29. James Skinner, Walgreens chairman, will also take on executive duties during the search for a permanent chief executive. The combined company will have 12,800 stores in 12 countries and a drug distribution business in 20 countries. Mr Pessina, who is one of the architects of the deal, said: “I look forward to working with James Skinner and all the leaders of the future enterprise when we launch the combined group.” It is not the first time Mr Pessina, who is the largest shareholder in Alliance Boots and will own about 20 per cent of the

Walgreens bought 45 per cent of Boots for $6.7bn in 2012

combined company, has stepped into a management role. In 2011, after Andy Hornby resigned suddenly as Alliance Boots’ chief executive, the Italian entrepreneur temporarily took over some of Mr Hornby’s duties. Walgreens bought 45 per cent of Boots for $6.7bn in 2012, four years after Mr Pessina and private equity group KKR bought the UK’s largest pharmacy chain by number of stores, then Europe’s biggest buyout. The £10bn transaction contained an option for the US company to acquire the remaining portion three years later. Mr Pessina made about £500m from the original acquisition of Boots. Alliance Boots is now domiciled in Bern, Switzerland. However, he and KKR did not take a dividend while it was in their ownership. Mr Pessina took shares from the first phase of the Walgreens deal, giving him an 8 per cent stake worth about $4.5bn. The second phase will see the value of his 20 per cent holding swell to about $13bn at the current share price. He originally invested $2.5bn.

CAROLINE BINHAM — LEGAL CORRESPONDENT

The UK financial watchdog has challenged a decision that it improperly identified the manager of the “London Whale” when it fined JPMorgan Chase £138m in the wake of the scandal that left the bank nursing $6bn of losses. The Court of Appeal case in London is being widely scrutinised, not just by other traders in the Whale case but also by foreign exchange traders who are making similar allegations against the regulator after it fined five banks £1.1bn last month in a separate investigation. The Financial Conduct Authority is challenging a decision from a tribunal over Achilles Macris, the former chief investment officer of the synthetic credit portfolio team that was the origin of the losses at JPMorgan. The FCA should have identified him as a third party to its findings against JPMorgan and given him a chance to make representations, the tribunal decision ruled in April. FCA findings against companies are meant to anonymise individuals to avoid any prejudice to cases against them. At least two traders caught up in the international forex probe are making similar challenges. Rohan Ramchandani, the former European head of spot trading at Citigroup, and Richard Usher, the former chief currency dealer in London for JPMorgan, have both filed challenges this week, according to tribunal records. They allege that they were improperly identified in findings published by the FCA last month as part of a $4.3bn international forex settlement against six banks. Both men were previously identified in media reports as members of a chatroom dubbed “the cartel.” Chat-room messages released by the FCA as part of their forex findings against JPMorgan and Citi included comments quickly attributed by the Financial Times and other media to Mr Usher and to Mr Ramchandani, among others. At least one other trader is making a similar challenge, with another considering doing so, according to people familiar with the situation. In the Whale case, the FCA alleged in its findings against the bank that following an April 2012 phone call, “by virtue of the conduct of CIO London management the Authority was deliberately misled by the firm”. Mr Macris has argued that he was the only person who could have been referred to through the “CIO London management” title, and that the FCA’s findings were prejudicial against him so he should have been given a chance to make his case. The FCA argued that it only has to give third parties the right to make representations before publishing its findings if they are actually identified, not if they are merely referred to using a moniker such as “Trader A”, Paul Stanley QC for the FCA told the court. “I’m sure it’s extremely inconvenient for the FCA but don’t you think, when you are making allegations of fraudulent concealment, it’s fair to allow them to make representations and you don’t get around it by saying they are simply ‘Trader A’?” questioned Lady Justice Gloster, one of the three judges hearing the case. “This is just another example of the lax regard the FCA had for the rights of individuals it was supposedly investigating. They didn’t bother to get input from people they were criticising in the notices,” said one person familiar with the forex traders’ challenges. See Lombard

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Friday 12 December 2014

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FINANCIAL TIMES

UK COMPANIES

City Insider

Persuading Songbird investors to accept bid may be beyond Our Ken

Build it and they will come. Few developments have fulfilled that promise better than Canary Wharf, whose control the Qataris are seeking via a £2.6bn takeover offer. The east London business district, home to banks such as HSBC and Citi, hums with commerce. When visionary developer Paul Reichmann began building in the Eighties, critics derided the Wharf as a white elephant. That description now applies more aptly to the ownership structure than the place. Ken Costa, a veteran banker, has been parachuted in as a representative of the Qatar Investment Authority. The wealth fund’s bid in conjunction with Brookfield could reduce the muddle, if it is successful. “Ken knows the Qataris well and the UK system backwards,” says a fellow grandee, “The QIA may also figure he’s

so close to God that will get the deal over the line.” The prominent Anglican cannot, however, intercede with the board of Aim-quoted Songbird Estates, which he has just joined. The QIA and partner Brookfield have offered 350p a share for Songbird, which owns 69.3 per cent of Canary Wharf. This automatically bars Mr Costa from deliberations on the bid, which fellow directors not appointed by the QIA have already dismissed as too low. Mr Costa can try wooing three other big shareholders, who hold 49.3 per cent between them. The QIA already owns 28.6 per cent of Songbird and the rest is a free float. But his eloquence would be more persuasive if the joint bid was above a standard net asset value that an independent valuer recently calculated at 381p per share. That old humbug Dr Johnson exaggerated when he claimed a man who is tired of London is tired of life. If that were true, the UK’s hectic capital would be even more crowded than it is. But it is indisputable that a man who doubts the economic prospects of London needs his head examining.

Canary Wharf is a proxy for those prospects. The QIA would, in most circumstances, be prohibited from a further bid within 12 months, which puts pressure on shareholders to accept this one. Longer term, the drift will be towards higher values for Songbird shares.

Hamish tackles a teaser Meet Hamish. He’s an insurance actuary. He’s not exactly a barrel of laughs, except perhaps on Burns Night. But if you run an insurer, Hamish is just the person to work out what compensation you might have to pay customers for selling them poor value annuities. The Financial Conduct Authority has asked insurers to examine past pension sales to see whether they shortchanged some sick and unhealthy people. These customers should command higher rates because they die sooner having, in some cases, had more fun than old folks who stick around for longer. The FCA appears to have already

made its mind up on this subject, which it has researched thoroughly. The watchdog says many insurers have done a poor job of telling customers they could have bought better “enhanced” annuities from rivals. The insinuation that inertia selling might play any part in the UK savings business will shock readers to the core. The FCA says insurers may eventually have to offer redress. The typical fund uplift required to turn a bog standard enhanced annuity into a competitive one is £2,400. This might apply to 90 per cent of enhanced annuity sales. About 85,000 enhanced annuities were sold last year. Assume six years of retrospection for dramatic effect and you get to a cost of just over £1bn, chump change for the insurance industry. Hamish can provide a more accurate estimate. He’s sharpening his pencil.

City elite don’t tweet A body called The Social Media Charter has launched guidelines on the use of social media by the City. These are

worthy but wordy. Lombard’s advice is simpler. Don’t. The Twitter output of British business is as follows: 50 per cent – Sir Richard Branson high-fiving staff and feeling humbled by young entrepreneurs/charity workers/ dolphins; 30 per cent – Lord Sugar grumbling and plugging The Apprentice; 20 per cent – pundits arguing markets are too high, too low or about right. Few business leaders tweet or blog in person. If they said anything interesting, they would get in trouble. If they said nothing interesting, there would be no point. Besides, framing banalities is a professional job. That’s why big companies have PR departments. A tweet in which a chief executive confesses to feeling “quietly excited about our 4 per cent uplift in ebitda” will typically have been written by a young go-getter in communications. The young go-getter hopes one day also to rise above direct interaction with anyone except the chairman, their tailor and top investor Neil Woodford. [email protected]

Edited by Patrick Jenkins [email protected]

Church credit union Welby vs Wonga An early Christmas present may be en route to Archbishop Justin Welby. Word has it that the Financial Conduct Authority has finally found the time — in among the regulator’s embarrassing gaffes, cancelled bonuses and the rest — to grant approval to the Church of England’s big sally into financial services. The Churches’ Mutual Credit Union is set to get regulatory approval before the end of the year, City Insider gathers. About time. The church has wanted to create its own credit union — a mutual not-for-profit savings and loans institution — since 2008. Approval for the CMCU had been due by this summer but apparently something more important came up at the FCA. The latest info on the credit union’s website says “various savings and loans products” will be rolled out by December 31. Top of the list is a “short-term loan” of “£250-£2000” with a typical 26.82 per cent APR. Pricey yes, but a far cry from

Real estate

Qataris appoint ex-Lazard banker to Songbird board Costa to be director of Canary Wharf owner amid bid tensions CLAER BARRETT, KATE ALLEN AND ARASH MASSOUDI

Ken Costa, the City grandee and former Lazard and UBS banker, has been appointed to the board of Songbird Estates to represent the Qatari sovereign wealth fund that is attempting to wrestle control of Canary Wharf. Songbird owns 70 per cent of Canary Wharf Group, while Canadian property investors Brookfield own 22 per cent. The Qataris have teamed up with Brookfield in an attempt to gain control of Songbird. The Qatar Investment Authority is Songbird’s biggest shareholder, with a 28.6 per cent stake.

The Qataris need one of the three major shareholders to sell out in order to win control Other major shareholders include New York magnate Simon Glick, the China Investment Corp and Morgan Stanley. Songbird has a free float of 21 per cent of its shares. Songbird said yesterday that Mr Costa had been appointed as a board director with immediate effect, filling the vacancy left by Khalifa Al-Kuwari when he stepped down in September. Mr Costa was originally nominated for his directorship in early November at around the time when the QIA and Brookfield made their first approach to the board, according to two sources

familiar with the situation. Their initial bid of 295p per share was rejected by Songbird’s board, which has three independent directors and three appointees each from Mr Glick and Morgan Stanley. Mr Costa’s appointment brings the number of board appointees nominated by Qatar Holding, the direct investment arm of the Qatar Investment Authority, back up to three. The QIA and Brookfield last week made a final offer of 350p per share, valuing Songbird at £2.6bn. They have support from shareholders representing 31.6 per cent of Songbird’s free float, having received letters of intent from EMS Capital, Madison International Realty and Third Avenue Management. However, they need one of the three major shareholders to sell out in order to win control. The bid has caused tensions between Songbird’s board members, who will have to continue to work together if the QIA/Brookfield bid is rejected. The board will produce a recommendation to shareholders once it has received the full offer document from QIA/Brookfield, sometime in the coming weeks. As a QIA representative, Mr Costa will be recused from board duty until the outcome of the takeover battle is known. South African-born Mr Costa, the founder of Ken Costa Strategic, a company providing advice to international clients, was formerly chairman of Lazard International and chairman of Europe, Middle East and Africa at UBS. He has worked in the City of London for more than 30 years. A seasoned deal maker, Mr Costa brokered the £1.5bn deal to sell Harrods to the Qataris and later acted for the emirate when it acquired a majority stake in Aim-listed European Goldfields.

Wonga’s normal 5,853 per cent. Soon the archbish may be able to fulfil his old threat to compete payday lenders “out of existence”. One snag — you have to work for the church to use the CMCU. Goodwill to (some) men.

Co-operative Bank Ex-con trick

SuperGroup partly blamed expansion across Europe for a fall in underlying profits

Taking stock SuperGroup feels warm autumn chill

SuperGroup, owners of the logo-heavy Superdry brand, blamed warm autumn weather and expansion across Europe for a 31.6 per cent fall in underlying operating profits to £12.5m in the six months to October 25. But the retailer, which appointed former Co-operative Group boss Euan Sutherland as its chief executive two months ago, said yesterday that it still expects full-year profits to be in line with its latest forecast, revised down to £60m-£65m in October. “We are well prepared for the important peak season and remain on track to deliver profits within guidance,” said Mr Sutherland.

— Jason Alden/Bloomberg

Despite being “heavy on stock”, Mr Sutherland said the company would not alter its strategy of eschewing storewide sales. “You won’t be seeing red and white [sales signs] in the windows,” he said. Trading in SuperGroup shares was volatile yesterday. After opening down 4 per cent at 795p, they rose and then fell to as low as 751p in early trading before recovering to 772p. Profit before tax rose 73.7 per cent to £17.2m, but underlying profit fell due to a “challenging start to the financial year, albeit against tough comparatives”. John Aglionby

See Lombard

General retailers

Sports Direct sidesteps England World Cup woes to rack up rise in profits KADHIM SHUBBER

Sports Direct, the sportswear retailer owned by billionaire Mike Ashley, has reported a rise in half-year profits despite a warm autumn that has hit a string of clothing retailers. The company also shrugged off the effect of England’s poor performance at the World Cup in Brazil, which weakened sales of the team’s football shirts, as pre-tax profits rose 9.8 per cent to £160.6m for the six months to October 26. “The results for the six months were solid considering the adverse impact on performance during the period of England’s early departure from the Fifa World Cup in Brazil and the unseasona-

bly mild weather during autumn reducing footfall,” said Dave Forsey, chief executive. Clothing sales this autumn have taken a hit as the warm weather caused customers to delay buying hats, scarfs and other winter clothing. Supergroup, Next and Primark have all reported a knock to their trading. But with gross margins improving 130 basis points to 44.5 per cent, analysts said Sports Direct had offset slowing sales by selling more of their higherpriced products. “The sales in the second half slowed due to the warm weather, but what they did sell was more of the premium ranges,” said Mike Dennis, analyst at Cantor Fitzgerald.

£160.6m

£203.1m

The amount pretax profits rose to for the six months to October 26

The amount ebitda climbed to during the period

Earnings before interest, tax, depreciation and amortisation rose 10.8 per cent to £203.1m during the period, as the company bought interests in retailers Tesco and Debenhams. Sports Direct is trialling four concessions at Debenhams and has a 12.7 per cent interest in the department store’s shares. It has a 0.3 per cent interest in Tesco’s shares and has taken space at Tesco stores. Mr Forsey said Sports Direct would continue to “explore opportunities” for strategic investments in other companies. The company is also moving into the gym market, opening a chain with £5 a month membership, and the first is set to open on Merseyside this year.

The retailer, which has more than 400 stores in the UK, has been criticised for its employment practices, which Ed Miliband, the Labour leader, called “Victorian”. The opposition party contends that 80 per cent of Sports Direct’s 20,000 employees are on zero-hour contracts, meaning they are not guaranteed work. Mr Forsey declined to comment. Under the company’s bonus scheme, about 3,000 permanent employees are due to receive 5m shares in 2015 and another 15m shares in 2017. At current share prices, next year’s payout amounts to more than £33m, or £11,000 per employee. Sports Direct shares closed down 1.3 per cent at 666p.

A U-turn at the Co-Op Bank. The struggling lender has written to some of its former prisoner clients. It’s terminating their accounts because of “a change in our risk appetite”. Letters went out recently to about 400 individuals. The Coop’s ethical business model once extended to signing up prison inmates. This generated decent publicity — and a decent slug of business. Steve Dagworthy, a senior bod at Prison Consultants, which coaches white-collar convicts in how to cope with prison, told City Insider: “One of the root causes of recidivism is the inability to function normally, including having a basic bank account. Yet all the exprisoners that I know have had their bank accounts closed in this way. It is a pity that they are now paying for the Co-op’s mistakes as well as their own.” The Co-op is grappling with a capital black hole following multiple scandals. City Insider wonders what the bank of choice is for former chairman Paul Flowers, the disgraced church minister dubbed the “Crystal Methodist”. The reverend pleaded guilty in May to possession of class A drugs. But he was handed a modest fine, rather than a prison sentence. That should have kept him off the Co-op’s customer blacklist. Maybe.

Daniel Stewart Down the hatch Sad to report — City Insider’s prediction of a couple of months ago has come to pass. Thursday night’s “Champagne Odyssey” Christmas do thrown by broker Daniel Stewart was a chance to drown sorrows rather than celebrate. Friday will be the firm’s last day as an authorised nominated adviser to Aim companies, after mounting pressure from regulators.

Mary-Anne Daly Shaking it up Pulses were racing among the septuagenarians at Cazenove’s private wealth management bash at the British Museum this week. Mary-Anne Daly, who heads the group, took to the stage in a risqué sleeveless black cocktail dress. Specs set back on immaculately coiffed blonde hair, Daly — 27 years of experience in investment and banking — cut a glamorous figure. It’s probably part of the mission to shake up the fusty old Cazenove brand now fused with Schroders. So long as she doesn’t bump the clients off with heart attacks.

24

★

FINANCIAL TIMES

Friday 12 December 2014

UK COMPANIES Food & drug retailers

Ocado lifts sales despite supermarket price war Online grocer expected to deliver its first full-year pre-tax profit ANDREA FELSTED — SENIOR RETAIL CORRESPONDENT

Ocado delivered a 15 per cent increase in sales in the three months to the end of November despite the supermarket price war. The sales growth comes as analysts forecast Ocado’s first full-year pre-tax profit in the financial year to the end of November. Including the benefit from Ocado’s £200m partnership with Wm Morrison, the online grocer said sales including value added tax rose 18.6 per cent in the 16 weeks to November 30. Ocado’s retail gross sales from its own website rose 14.9 per cent. Duncan Tatton-Brown, finance director, said Ocado had felt some impact from the escalating supermarket price war because when rivals cut prices it was likely to follow suit. However, he said the trend of shoppers moving online, together with

More online shoppers and a broader product range have insulated Ocado from some competition — Jason Alden/Bloomberg

General financial

Banks support guidelines to avoid social media blunders HENRY MANCE

Bankers could be trained in how to use Twitter, and have clauses about social media behaviour inserted into their employment contracts, under new guidelines being developed in consultation with the Financial Conduct Authority. In recent years, the financial industry has been a relative laggard in embracing social media platforms, such as Twitter — aware that it is a double-edged sword that has scarred companies from JPMorgan to American Airlines. But, in London yesterday, it launched The Social Media Charter: a set of standards designed to avoid future blunders. Banks, including the UK arms of HSBC Facebook, Twitter and other networks have proved something of a Trojan horse for banks

and Citibank, as well as the fund management group Threadneedle, have already given the charter their broad support. Although its guidelines are not sanctioned by regulators, including the FCA, backers hope that compliance with them may help mitigate the risk of fines. “It is obvious that the financial services industry has to ensure that social media is only used in a responsible manner to avoid further mishaps,” said Citi’s vice-chairman of Emea Banking, Stuart Popham. Kitty Parry, founder of public relations firm Templars Communications, which has led the Charter, said: “Pension funds are asking about the social media policies of the hedge funds they invest in . . . It’s coming up in due diligence.” This summer, the FCA had been due to publish its own guidance about social media use, but instead issued a consultation paper, and has been in contact with the Charter founders. Regulatory scrutiny has followed inci-

dents in which Facebook, Twitter and other networks have proved something of a Trojan horse for banks. JPMorgan cancelled a planned question and answer session last year, after its hashtag AskJPM became a lightning rod for discontent about the US bank. “As a young sociopath, how can I succeed in finance?” read one of more than 5,000 negative tweets using the hashtag. Eventually, JPMorgan was forced into a meek U-turn, admitting “Bad Idea. Back to the drawing board”. Last month, even one of Twitter’s own executives, the former Goldman Sachs banker Anthony Noto, came a cropper on the social networking site, when he accidentally revealed that the company should make an acquisition. “I still think we should buy them. He is on your schedule for Dec 15 or 16 — we will need to sell him. I have a plan,” he said in a message that was presumably meant to be private. It was swiftly deleted. Private social media users have long hidden behind disclaimers, such as “retweets do not equal endorsements”. But the Charter makes clear banks will be held to a higher standard — even retweeting, liking or sharing a post could count as a communication with a client, and must therefore be “fair, clear and not misleading”. “Our customers are increasingly choosing to communicate with us using social media so it’s desirable that we have clear standards to meet their expectations,” said Antonio Simoes, UK chief executive of HSBC. However, bank compliance departments have struggled to authorise marketing communications via social media, because there are no specific regulatory guidelines in the UK. “It’s like trying to take a penalty kick, but you don’t know how big the goal is,” said Paul Armstrong, a digital consultant at Here/Forth. “Everyone’s waiting for the FCA to drop the bomb on what you can and can’t do.” Companies can apply to be certified under the The Social Media Charter, once they have implemented its recommendations.

Real estate

Frank Knight to quit Zoopla KATE ALLEN — PROPERTY CORRESPONDENT

Estate agent Knight Frank is to quit property website Zoopla in favour of a new start-up being established by estate agents frustrated with the big portals’ dominance. Knight Frank is a founder member of not-for-profit site OntheMarket, which is due to launch in January. About 5,000 estate agents’ branches have signed up to join the portal out of a total of about 19,000 across the country. OntheMarket’s launch has shaken up rivals because it requires new members to quit either Rightmove of Zoopla; it also threatens to compete on costs. OntheMarket’s founders complain that the big portals’ fees are rising too quickly. It has also banned online-only estate agents. Online agent eMoov has called this “anti-competitive” and filed a complaint with competition authorities. Zoopla successfully floated this spring in a near-£1bn IPO, but in recent

months its shares have been trading at below their initial price of 220p as fears of a UK housing market slowdown add to investors’ growing awareness of the forthcoming OntheMarket launch. Last month, Zoopla founder Alex Chesterman said the launch of the new portal “may have some short-term impact” on its membership numbers. Analysts at Exane BNP Paribas forecast that about 2,000 agents would leave the two dominant portals after the OntheMarket launch, with Zoopla being more exposed because it is smaller than Rightmove. Zoopla has a market capitalisation of about £834m, compared to Rightmove’s £2.1bn. Noel Flint, a partner at Knight Frank, said: “After consideration of the data available to us, we noted that Rightmove generates considerably more referrals to our website than . . . Zoopla.” The launch of OntheMarket would “offer consumers more choice and challenge the existing duopoly”, he said.

Ocado’s broader product range, meant that it was insulated from the most competitive elements of the market. “There is a lot of smoke and mirrors out there,” he said. Ocado matches the prices on thousands of products to those of Tesco. The City expects Dave Lewis, the new chief executive of Tesco, to launch an assault on price early next year as he battles to turn round Britain’s biggest supermarket. “Our sales are growing at 15 per cent. Our costs efficiencies are getting better and therefore any further price activity will undoubtedly have an influence on us, but a very modest effect, compared with any of our competitors,” said Mr Tatton-Brown. Tim Steiner, chief executive, expected Ocado to “continue growing sales slightly ahead of the online grocery market”. Mr Tatton-Brown said the contract with Morrison was going well, but did not comment on its sales growth. Ocado is keen to add another distribution contract, possibly with an overseas retailer. Mr Tatton-Brown indicated that this had never been

expected this year, potentially paving the way for a further agreement in 2015. Ocado’s distribution agreement with Waitrose can be terminated as early as 2017. Each side must give 18 months’ notice. Analysts at Jefferies said recently: “We believe there is a high probability that Waitrose will elect to rescind the

‘We believe there is a high probability that Waitrose will rescind the contract’ Jefferies’ analysts contract on 1 March 2017, resulting in notice being served on 1 September 2015.” Mr Tatton-Brown said the potential termination of the Waitrose contract “was not something that overly concerns us”. Ocado made a £300,000 pre-tax profit in the final quarter of the year to November 30 2010. The consensus of analysts’ forecasts is for full-year pretax profit of about £10m.

★

Friday 12 December 2014

25

FINANCIAL TIMES

COMPANIES

Travel & leisure. Motorsport

Ecclestone vows to maintain iron grip on Formula One Chief executive fights against proposal to reduce his influence over the series ROGER BLITZ — LEISURE INDUSTRIES CORRESPONDENT

Bernie Ecclestone came out fighting against plans to clip his wings as Formula One chief executive and made clear he had no intention of relinquishing his power any time soon. “I run the company as if it belonged to me,” said a defiant Mr Ecclestone, now embroiled in a power struggle with F1’s major shareholder, private equity group CVC Capital Partners. The man who has run F1 for more than 30 years is resisting a proposal from Donald Mackenzie, CVC cofounder, to install former Diageo boss Paul Walsh as chairman with executive duties. The proposal is part of an F1 succession strategy devised by Mr Mackenzie that would gradually reduce Mr Ecclestone’s iron grip on the running of the

motorsport series. Mr Ecclestone, 84, summoned the media to the headquarters of Formula One Management in Knightsbridge to say it was by no means certain Mr Walsh would become chairman. Ahead of a planned meeting with Mr Walsh yesterday afternoon, Mr Ecclestone said of the proposal: “Donald’s directing it.” Asked about the idea of working alongside Mr Walsh, Mr Ecclestone said: “I don’t need to do anything with anybody. Fortunately enough, I’m over the retirement age, got a few dollars in the bank still, so not looking for a job. “I’m happy here as long as the board are happy with me. When I think I can’t deliver any longer, I shall retire.” He had not yet reached that moment, he added. F1 has for years been transfixed by the succession issue, and Mr Mackenzie’s proposal is CVC’s first genuine attempt to address it. He held several conversations in the latter part of the season with F1 team principals and investors, but held back until after the final Grand Prix before indicating he was ready to move.

F1 has been transfixed by the succession issue for years and Donald Mackenzie’s proposal is CVC’s first genuine attempt to address it — Alberto Saiz/AP The proposal was due to be unveiled at an F1 board meeting in Jersey on Monday. Mr Walsh would be nominated as successor to Nestlé chairman Peter Brabeck-Letmathe, who is having longterm medical treatment. But the board meeting did not even discuss the chairmanship. Mr Ecclestone’s clear opposition to the idea appears to have prompted Mr Mackenzie to hold fire. On suggestions that Mr Walsh would try to rein in Mr Ecclestone, the chief executive quipped: “He would be unique if he could do that.” Did he think Mr Walsh would try to rein him in? “Depends,” said Mr Ecclestone. “First he’s got to be appointed.” Mr Ecclestone did reiterate that he would like to bring a sponsorship expert into Formula One Management. But to the idea of gradually handing over responsibilities to Mr Walsh and others, he said: “Let’s have a look and see.” He added: “I‘ve got a little bit of experience. I’m in the good position that people trust me reliably. When I shake hands with them, they don’t need a contract, they know that it’s done, that’s the end of it. It takes an awful long time to get that sort of reputation. And whoever’s doing what I do would take a long time to achieve that.” Mr Walsh was “one of a number of people” suggested to become chairman and was not a shoo-in for the job, said Mr Ecclestone. Finding “a

Thoughts of the day Ecclestone on . . . “It’s been difficult at certain stages of the year” — on 2014, a year which included his bribery trial in Germany (the trial ended when he agreed to pay $100m to settle the case). “It’s not easy taking your mind away when someone says you might get 10 years in prison” — on whether the job helped distract him from the trial. “Since people have been breaking my balls on this social media, I’ve been looking at this tweeting thing and I can’t see anything on there except

General retailers

new Bernie” was a bit of a nonsense, he said. “If I died now, there’s enough people in the company that could continue running the company in the way we’ve set things up.” If he controlled the board, he added, he would choose as his successor Sacha Woodward-Hill, his close aide and F1’s legal counsel. His objections to Mr Walsh appear to be related to the hands-on role Mr Mackenzie envisages for him. Mr Ecclestone did recognise that if CVC wanted “a sort of a front guy” to help steer F1 to the private equity group’s long-cherished hope of flotation, “the right person would come along. Maybe this Mr Walsh being the chairman would be the right person”. The problem for CVC, he added, was that F1 was “a bit unique to other companies they’ve bought”. Mr Ecclestone stirred more controversy by saying the financial problems affecting some of the sport’s weaker teams could be resolved by allowing teams to race in cars with the old formula V8 and V10 engines. He intends to propose the rule change at a summit of F1 teams next week. But it is bound to be opposed by the Fédération International de l’Automobile, the regulator, which was instrumental in changing the formula to the new hybrid turbo V6 engine. Defiant: Bernie Ecclestone shows no sign of letting go of F1 Laszlo Balogh/Reuters

[Mercedes team principal] Toto Wolff and one of my daughters. And I thought, what does it ever do? There’s a few idiots who put things on there. How does it ever help Formula One?” — on being criticised over comments disparaging social media. “Not really. He’s not sure” — on whether he and Donald Mackenzie argue about social media’s value to F1. “CVC keep talking about a public offering. When it gets closer, they think, is it such a good idea? It’s not on the agenda” — on floating F1. “My ex used to say I’ll die in a motorhome on the circuit”— on death.

.

Moss Bros suited to sales gains KADHIM SHUBBER

Consumers are smartening up as the economy shows signs of growth, with suit seller Moss Bros reporting an uptick in the sale of black-tie outfits for fancy evening events. “We’ve had a very good black-tie season both on hire and on retail. That’s probably a sign the economy is doing slightly better,” said Brian Brick, chief executive. The menswear specialist said like-forlike sales of its jackets, suits and shirts were up almost 8 per cent in the 19 weeks to December 6, despite the warm autumn weather that has hit clothing retailers across the board. However, margins fell 180 basis points as the company cut prices to attract consumers, put off buying win-

ter coats because of the warmer-thanusual weather. The company said its full-year margins would depend on the level of discounting during the Christmas period in a retail market Mr Brick said had become “more aggressive on price”. Moss Bros, which has 131 stores in the UK, is more than halfway through a fiveyear store refurbishment programme, which Mr Brick said was attracting new customers to its stores. “We’re certainly changing and people are noticing the change,” he said. Likefor-like sales for the 45 weeks to December 6 were up seven per cent. He added they were seeing more young people in their stores, particularly for single blazers, and that wedding-goers were increasingly opting for lounge suits. The shares fell 1.19 per cent to 83p.

26

★★★

FINANCIAL TIMES

Friday 12 December 2014

MARKET DATA WORLD MARKETS AT A GLANCE

FT.COM/MARKETSDATA

Change during previous day’s trading (%) S&P 500

Nasdaq Composite

0.45%

Dow Jones Ind

0.52%

FTSE 100

FTSE Eurofirst 300

-0.59%

0.36%

0.02%

Nikkei

Hang Seng

-0.89%

-0.90%

FTSE All World $

$ per €

-0.11%

$ per £

-0.322%

0.064%

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

Nov 12 - Dec 11 S&P 500

All World

New York

2,039.68 Month -0.14%

Year 12.91%

Day 0.38%

New York

IPC

Nasdaq Composite

Toronto

Month -5.79%

Month 1.22%

Year 15.95%

Dow Jones Industrial

London

Day 0.83%

New York

Month -5.84%

Year -1.39%

Bovespa

Day -0.59%

Month -2.29%

Year -0.49%

FTSE Eurofirst 300

Index

Nov 12 - Dec 11 Xetra Dax

All World

Frankfurt

-0.253%

0.543%

Index

Nov 12 - Dec 11 Nikkei 225

All World

1,357.43

Day 0.02%

Gold $

-2.94%

-1.04%

Day 0.64%

Month 0.01%

Year 8.16%

CAC 40

Month 5.27%

Year 8.65%

Ibex 35

Madrid

10,157.30

Paris

Month 1.55%

Year 10.53%

FTSE MIB

Day -1.49%

Hong Kong

Month -2.13%

Year -3.86%

FTSE Straits Times

Singapore 3,318.70

23,938.18

3,283.71

23,312.54 Day -0.90%

Milan

Seoul

1,916.59

Year 10.54%

Hang Seng

10,431.80

Day 0.34%

Month 2.84%

All World

1,967.27

17,257.40

Day -0.89%

Index

Nov 12 - Dec 11 Kospi

Tokyo

17,124.11

9,210.96

Europe

1,343.41

São Paulo

Oil Brent $ Sep

9,862.53 6,461.70

Mexico City

41,714.57

Day 0.52%

All World

6,611.04 13,905.12 Year 5.88%

£ per €

ASIA Index

Nov 12 - Dec 11 FTSE 100

44,300.83

4,708.16

4,660.56

All World

14,856.20

2,035.33

Day 0.45%

Index

Nov 12 - Dec 11 S&P/TSX COMP

¥ per $

Month -1.82%

Year -1.82%

Shanghai Composite

Day -0.21%

Shanghai

Month 0.86%

Year 8.48%

BSE Sensex

Mumbai

2,925.74 17,596.34

17,614.90 Day 0.36% Country

Month -0.10% Index

Year 10.16%

Day 0.63%

Dec 11

Dec 10

Day -0.05% Country

Month 0.07% Index

Year 3.29% Dec 10

8279.04 5237.10 5259.00 3266.40 2234.50 3254.78 4816.62 49548.08 810.67 13852.95 651.98 18926.66 8443.67 9911.58 3079.85 282.87 2940.01 1517.81 1019.63 1444.01 1756.03

Index

Year -0.41%

20325.96 25227.94 19217.69 4321.52 17412.58 1184.07 1406.83 2145.04 5135.97 6562.71 420.97 455.07 1511.84 1765.52 41372.66 9808.60 416.71 633.74 5523.58 32932.41 594.67 31781.65

8650.73 5207.40 5231.00 3209.30 2208.31 3261.96 4841.88 49861.81 814.00 13905.12 641.75 18786.95 8319.71 9992.18 3064.69 286.74 2925.74 1531.51 1023.35 1444.01 1760.51

Country

Month -4.98%

4,225.86

4,179.88

Dec 11

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

Dec 10

49,861.81

FTSE Italia All-Share 20298.27 CSE M&P Gen 85.01 83.33 Italy FTSE Italia Mid Cap 25116.96 PX 983.91 994.75 OMXC Copenahgen 20 755.98 759.34 FTSE MIB 19201.07 EGX 30 9404.17 9482.62 Japan 2nd Section 4322.82 OMX Tallinn 766.80 773.11 Nikkei 225 17257.40 Austria OMX Helsinki General 7801.12 7814.91 S&P Topix 150 1174.83 Belgium CAC 40 4225.86 4227.91 Topix 1397.04 Jordan Amman SE 2145.63 SBF 120 3317.59 3321.87 Brazil Germany M-DAX 16656.46 16644.10 Kenya NSE 20 5124.80 Canada Kuwait KSX Market Index 6463.76 TecDAX 1351.59 1348.20 XETRA Dax 9862.53 9799.73 Latvia OMX Riga 419.43 Chile Greece Athens Gen 827.98 893.71 Lithuania OMX Vilnius 457.89 Luxembourg LuxX 1509.23 China FTSE/ASE 20 266.34 288.53 Hong Kong Hang Seng 23312.54 23524.52 Malaysia FTSE Bursa KLCI 1744.57 HS China Enterprise 11255.43 11372.45 Mexico IPC 41714.57 HSCC Red Chip 4326.12 4368.08 Morocco MASI 9773.13 Hungary Bux 17463.68 17621.96 Netherlands AEX 416.77 India BSE Sensex 27602.01 27831.10 AEX All Share 633.37 S&P CNX 500 6744.95 6796.25 New Zealand NZX 50 5502.07 Indonesia Jakarta Comp 5152.70 5165.41 Nigeria SE All Share 32203.62 Colombia Ireland ISEQ Overall 5173.85 5147.95 Norway Oslo All Share 593.71 Croatia Israel Tel Aviv 100 13.14 13.10 Pakistan KSE 100 31779.75 (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. Argentina Australia

Dec 11

52,474.27

Cyprus Czech Republic Denmark Egypt Estonia Finland France

Apple Facebook Class A Exxon Mobil Microsoft Staples Ebay Bank Of America Tesla Motors Citigroup Walgreens Co.

stock traded m's 46.0 25.9 19.2 13.7 13.2 12.7 12.5 12.1 11.2 11.0

close price 111.62 77.73 89.20 47.17 16.10 56.79 17.47 208.88 54.51 73.01

Day's change -0.33 1.55 0.53 0.27 1.29 1.52 0.09 -0.96 0.04 4.86

Close price

Day's change

Day's chng%

16.10 32.29 73.01 48.33 62.08

1.29 2.28 4.86 2.11 2.69

22.98 32.10 20.00 10.51 53.28

-0.98 -1.06 -0.65 -0.34 -1.66

BIGGEST MOVERS Ups Staples Urban Outfitters Walgreens Co. Delta Air Lines Hospira Downs Freeport-mcmoran Allegheny Qep Resources Nabors Industries Garmin Ltd

Month -0.28%

Country

Index

Philippines Poland Portugal

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

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

Year 6.83% Dec 11

Dec 10

7072.10 52550.03 4920.60 2185.80 6742.43 1455.04 824.01 8393.92 3318.70 216.79 766.83 48110.52 40433.13 42438.05 1916.59 245.54 10431.80 7243.34 1454.45 468.34 9058.82 9013.07

7175.08 52477.44 4976.52 2208.35 6879.17 1486.85 855.05 8410.98 3325.81 217.49 783.34 48745.43 41775.93 43062.01 1945.56 249.35 10396.90 7254.28 1452.80 468.47 9020.83 9032.16

Day -0.49% Country Thailand Turkey UAE UK

USA

Venezuela Vietnam

Month 18.28% Index Bangkok SET BIST 100 Abu Dhabi General Index FT 30 FTSE 100 FTSE 4Good UK FTSE All Share FTSE techMARK 100 DJ Composite DJ Industrial DJ Transport DJ Utilities Nasdaq 100 Nasdaq Cmp NYSE Comp Russell 2000 S&P 500 Wilshire 5000 IBC VNI

Year 30.76% Dec 11

Dec 10

1526.81 84126.33 4368.31 2692.70 6461.70 5745.77 3470.90 3405.77 6359.93 17596.34 8927.05 603.57 4246.48 4708.16 10690.15 1166.96 2035.33 21338.89 3552.83 550.11

1559.56 84142.64 4582.91 2715.70 6500.04 5771.93 3491.02 3407.28 6322.83 17533.15 8858.34 597.46 4224.87 4684.03 10662.24 1161.86 2026.14 21244.73 3196.63 557.19

Day -0.82% Country

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

Cross-Border

27,602.01 Year 29.86%

Month -0.98% Dec 11

Dec 10

238.66 3159.11 826.78 5598.98 273.03 1357.43 2745.38 1326.66 1159.86 3288.90 1524.12 482.79 3939.58 4188.62 414.77 1698.43 1374.87 2290.29 1366.39 1389.70 1887.85 2991.96

238.21 3150.95 827.97 5595.68 273.33 1357.21 2743.38 1325.37 1177.43 3392.50 1545.21 483.03 3940.30 4179.32 420.22 1721.97 1375.86 2317.58 1363.95 1388.90 1888.07 2987.62

UK MARKET WINNERS AND LOSERS

LONDON ACTIVE STOCKS

stock traded m's Bp 200.6 National Grid 150.6 Rio Tinto 150.1 Glaxosmithkline 145.5 Bhp Billiton 131.7 British American Tobacco 131.2 Hsbc Holdings 128.0 Shire 126.5 Vodafone 115.3 Bg 113.4

close price 398.80 900.50 2748.00 1393.00 1361.00 3510.50 615.30 4565.00 222.95 843.70

Day's change -0.80 -6.50 -49.50 7.00 -25.50 -72.50 -5.60 136.00 0.30 -28.70

BIGGEST MOVERS

EURO MARKETS ACTIVE STOCKS Bbva Airbus Iberdrola Intesa Sanpaolo Repsol Telefonica Santander Bayer Ag Na Total Unicredit

Close price

Day's change

Day's chng%

8.67 7.60 7.13 4.57 4.53

Ups Spirent Communications Ocado Kier Tullett Prebon Shire

71.20 355.40 1470.00 255.30 4565.00

5.05 21.40 47.00 7.80 136.00

7.63 6.41 3.30 3.15 3.07

Ups Inditex Technip Orange Telecom Italia Hennes & Mauritz Ab , H & M Ser. B

-4.09 -3.20 -3.15 -3.13 -3.02

Downs Ferrexpo Bank Of Georgia Holdings Enquest Soco Int Stock Spirits

57.35 1949.00 35.80 243.40 243.30

-3.65 -110.00 -1.81 -11.10 -10.00

-5.98 -5.34 -4.81 -4.36 -3.95

Downs Piraeus Bank (cr) National Bank (cr) Alpha Bank (cr) Raiffeisen Bank Internat. Ag A.p. M_ller - M_rsk A A/s

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

28,008.90

2,494.48

Day -0.09%

STOCK MARKET: BIGGEST MOVERS AMERICA ACTIVE STOCKS

19,201.07

18,702.24

stock traded m's 597.3 555.7 512.4 474.1 445.9 390.5 384.5 367.7 364.9 360.1

close price 8.22 41.32 5.61 2.50 17.20 12.92 7.01 115.65 42.57 5.65

Day's change -0.02 -1.85 -0.03 0.01 -0.20 0.01 0.03 0.00 0.03 0.06

stock close traded m's price Toyota Motor 1059.2 7481.00 Softbank . 583.7 7311.00 Mitsubishi Ufj Fin,. 427.2 670.00 Mazda Motor 347.0 2969.00 Fuji Heavy Industries 331.6 4304.00 Sumitomo Mitsui Fin,. 320.7 4317.00 Sony 291.8 2464.00 Mizuho Fin,. 283.8 203.60 Japan Tobacco . 268.3 3550.00 Fast Retailing Co., 235.8 41910.00

Day's change -42.00 -110.00 -10.40 -20.50 29.00 -75.00 -40.00 -1.40 -75.50 -495.00

Close price

Day's change

Day's chng%

BIGGEST MOVERS

23.29 48.42 13.99 0.94 34.29

0.94 1.43 0.29 0.02 0.68

0.93 1.45 0.46 14.75 1464.18

-0.15 -0.15 -0.03 -0.75 -68.57

BIGGEST MOVERS

Based on the constituents of the FTSE 350 index

TOKYO ACTIVE STOCKS

Close price

Day's change

Day's chng%

4.23 3.03 2.08 2.06 2.04

Ups Unitika Showa Denko K.k. Takashimaya , Sekisui House, All Nippon Airways Co.,

63.00 179.00 983.00 1551.50 300.40

2.00 4.00 19.00 27.00 4.40

3.28 2.29 1.97 1.77 1.49

-13.89 -9.38 -5.71 -4.84 -4.47

Downs Tokai Carbon Co., Nisshin Steel Holdings Co., Chugai Pharmaceutical Co., Kyowa Hakko Kirin Co., Nippon Steel & Sumitomo Metal

353.00 1121.00 3060.00 1212.00 302.30

-13.00 -36.00 -90.00 -34.00 -7.60

-3.55 -3.11 -2.86 -2.73 -2.45

Based on the constituents of the FTSEurofirst 300 Eurozone index

Based on the constituents of the Nikkei 225 index

Dec 11 price(p)

%Chg week

%Chg ytd

54.2 -12.7 -30.4 6.4 11.5 -0.1 5.9 10.6 -16.2 10.7 22.8 8.4

FTSE 250 Winners Ao World Ocado Card Factory Spirent Communications Victrex Fisher (james) & Sons Catlin Ltd Electra Private Equity Daejan Holdings Booker Dignity Debenhams

283.20 355.40 264.00 71.20 1961.00 1154.00 586.50 2775.00 5500.00 148.70 1820.00 73.65

14.1 7.7 7.4 6.5 5.7 5.5 5.0 4.5 4.5 4.2 4.1 4.0

-19.5 -31.4 6.8 -7.7 1.0 16.6 21.9 -8.5 26.4 0.9

FTSE SmallCap Winners Sportech Boot (henry) Allied Minds Centaur Media Consort Medical Greggs Dialight Mountview Estates Sthree Kcom Mecom Brammer

-27.2 -56.4 -35.0 -11.1 -40.8 -15.2 -48.8 -19.5 -5.7 -28.5 -18.3 -19.4

Losers Afren Enquest Ophir Energy Lonmin Bank Of Georgia Holdings Premier Oil Vedanta Resources Soco Int Fenner Nostrum Oil & Gas Ferrexpo Pz Cussons

36.20 35.80 117.60 160.00 1949.00 168.90 619.00 243.40 211.70 509.00 57.35 305.30

-22.0 -21.7 -14.6 -12.6 -12.4 -12.2 -10.1 -9.7 -9.6 -9.4 -8.9 -8.7

-78.6 -73.4 -64.1 -48.1 -18.6 -46.1 -33.7 -38.4 -56.4 -70.0 -18.9

Losers Petropavlovsk Asia Resource Minerals Kenmare Resources Premier Foods Salamander Energy Hardy Oil & Gas Aquarius Platinum Ld Candover Investments Gem Diamonds Ite Aga Rangemaster Jpmorgan Russian Securities

FTSE 100 Winners Ashtead Arm Holdings Imi G4s Carnival Fresnillo Tui Travel St. James's Place Kingfisher Legal & General Whitbread Bt

Dec 11 price(p)

%Chg week

%Chg ytd

1172.00 959.00 1213.00 279.20 2789.00 745.00 437.60 805.50 322.20 246.60 4605.00 411.10

8.5 3.9 2.8 2.2 2.2 2.1 2.1 1.8 1.3 0.7 0.2 -0.1

Losers Bhp Billiton Tullow Oil Bg Anglo American Petrofac Aberdeen Asset Management Tesco Aggreko Glencore Smiths Bp Rio Tinto

1361.00 372.80 843.70 1173.00 724.00 423.90 171.30 1445.00 294.85 1058.00 398.80 2748.00

-9.3 -8.8 -8.6 -8.6 -8.5 -8.0 -7.9 -7.9 -7.8 -7.6 -6.6 -6.3

Dec 11 price(p)

%Chg week

%Chg ytd

54.25 198.00 321.50 66.00 815.00 663.00 794.00 9960.00 307.75 89.50 141.00 314.00

10.7 8.8 6.2 6.0 5.8 5.7 4.5 4.4 4.3 3.8 3.7 3.6

-33.4 -1.0 12.8 -14.8 54.0 -7.2 43.8 -14.8 -8.9 62.5 -30.2

Dec 11 Industry Sectors price(p) Winners Technology Hardware & Equip. 1155.48 Electronic & Electrical Equip. 3849.19 Chemicals 10954.58 Fixed Line Telecommunication 4667.30 Nonlife Insurance 1864.74 Mobile Telecommunications 5025.03 Industrial Transportation 2654.42 General Retailers 2869.03 Household Goods 12398.61 Support Services 6285.38 Industrial Engineering 8475.92 Equity Investment Instruments 7165.59

10.00 10.25 3.70 30.50 58.75 79.00 13.50 412.25 162.75 145.00 114.25 306.63

-39.4 -22.6 -17.8 -15.3 -15.2 -12.9 -11.5 -9.8 -9.6 -9.5 -9.3 -8.9

-86.3 -95.5 -82.2 -75.6 -47.4 5.3 -65.8 5.7 12.0 -52.8 -32.4 -43.4

Losers Mining 13729.15 Oil Equipment & Services 16170.65 Oil & Gas Producers 6816.85 Industrial Metals 1334.60 Food & Drug Retailers 2587.25 Tobacco 40534.01 Aerospace & Defense 4557.71 Gas Water & Multiutilities 5978.84 Construction & Materials 3958.81 Software & Computer Services 1213.24 Automobiles & Parts 7848.89 Health Care Equip.& Services 6093.71

%Chg week

%Chg ytd

3.4 0.3 0.2 0.1 -0.2 -0.2 -0.3 -0.6 -0.7 -1.0 -1.1 -1.3

-8.0 -15.2 1.1 6.0 2.1 -8.7 -17.9 8.6 11.6 -3.3 -18.3 5.6

-7.0 -6.8 -6.0 -4.9 -4.8 -4.7 -4.1 -2.7 -2.6 -2.5 -2.5 -2.2

-16.1 -26.8 -17.0 -4.9 -41.3 11.6 -15.4 5.6 -7.9 3.6 -9.8 26.3

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

CURRENCIES Dec 11 Argentina Australia Bahrain Bolivia Brazil Canada Chile China Colombia Costa Rica Czech Republic Denmark Egypt Hong Kong Hungary India

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

DOLLAR Closing Mid 8.5550 1.2116 0.3770 6.9100 2.6498 1.1530 616.3050 6.1886 2427.5000 534.0350 22.2984 6.0066 7.1501 7.7512 248.7947 62.3300

Day's Change 0.0077 0.0434 0.0060 0.0100 0.0118 34.9000 0.0050 0.0582 0.0151 0.0001 1.6236 0.2900

EURO Closing Mid 10.5932 1.5003 0.4668 8.5563 3.2811 1.4276 763.1410 7.6630 3005.8572 661.2700 27.6110 7.4376 8.8536 9.5980 308.0706 77.1803

POUND Day's Closing Day's Change Mid Change -0.0291 13.4280 0.0023 0.0055 1.9018 0.0125 -0.0013 0.5917 0.0001 -0.0235 10.8460 0.0019 0.0449 4.1592 0.0689 0.0035 1.8097 0.0097 -2.0817 967.3599 0.1826 -0.0064 9.7137 0.0202 35.0849 3810.2351 55.4284 -1.8084 838.2280 0.1526 -0.0034 34.9998 0.0975 -0.0017 9.4280 0.0253 -0.0243 11.2228 0.0019 -0.0262 12.1665 0.0023 1.1705 390.5112 2.6153 0.1483 97.8339 0.4720

Dec 11 Indonesia Iran Israel Japan ..One Month ..Three Month ..One Year Kenya Kuwait Malaysia Mexico New Zealand Nigeria Norway Pakistan Peru

Currency Indonesian Rupiah Iranian Rial Israeli Shekel Japanese Yen

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

DOLLAR Closing Mid 12348.5000 9740.5000 3.9256 119.4300 119.4299 119.4299 119.4293 90.5450 0.2921 3.4890 14.6913 1.2826 180.7500 7.2770 100.6250 2.9675

Day's Change 12.0000 -0.0047 0.6450 0.6448 0.6447 0.6435 -0.1050 0.0005 0.0105 0.1850 -0.0120 0.7500 0.1068 -0.3200 0.0080

EURO POUND Closing Day's Closing Day's Mid Change Mid Change 15290.5666 -27.0518 19382.3617 22.1770 12061.1985 -33.0983 15288.8133 2.6409 4.8608 -0.0192 6.1616 -0.0063 147.8844 0.3951 187.4588 1.0446 147.8844 0.3949 187.4586 1.0443 147.8844 0.3949 187.4585 1.0439 147.8842 0.3946 187.4586 1.0428 112.1175 -0.4380 142.1205 -0.1402 0.3616 -0.0004 0.4584 0.0008 4.3203 0.0012 5.4764 0.0174 18.1915 0.1798 23.0596 0.2943 1.5882 -0.0193 2.0132 -0.0185 223.8141 0.3171 283.7074 1.2260 9.0108 0.1079 11.4221 0.1697 124.5991 -0.7392 157.9422 -0.4749 3.6745 -0.0001 4.6578 0.0134

Dec 11 Currency Philippines Philippine Peso Poland Polish Zloty Romania Romanian Leu Russia Russian Ruble Saudi Arabia Saudi Riyal Singapore Singapore Dollar South Africa South African Rand South Korean Won South Korea Sweden Swedish Krona Switzerland Swiss Franc Taiwan New Taiwan Dollar Thailand Thai Baht Tunisia Tunisian Dinar Turkey Turkish Lira United Arab Emirates UAE Dirham United Kingdom Pound Sterling

DOLLAR Closing Mid 44.4900 3.3731 3.5990 55.7033 3.7534 1.3155 11.6489 1100.8300 7.5546 0.9702 31.2035 32.8400 1.8566 2.2770 3.6731 0.6371

Day's Change -0.1700 0.0140 0.0186 0.9735 0.0009 0.0037 0.0648 -1.3700 0.0249 0.0013 -0.1125 0.0003 0.0121 -0.0001

EURO Closing Mid 55.0898 4.1767 4.4565 68.9747 4.6476 1.6289 14.4243 1363.1052 9.3545 1.2013 38.6378 40.6642 2.2989 2.8194 4.5482 0.7889

POUND Day's Closing Day's Change Mid Change -0.3622 69.8321 -0.2547 0.0059 5.2945 0.0229 0.0109 5.6490 0.0302 1.0195 87.4325 1.5428 -0.0116 5.8913 0.0024 0.0002 2.0648 0.0062 0.0409 18.2843 0.1049 -5.4414 1727.8764 -1.8518 0.0053 11.8578 0.0412 -0.0017 1.5228 0.0022 -0.1060 48.9774 0.0085 -0.2513 51.5461 -0.1677 -0.0059 2.9141 0.0010 0.0073 3.5739 0.0196 -0.0125 5.7653 0.0010 -0.0023 -

Dec 11 ..One Month ..Three Month ..One Year United States ..One Month ..Three Month ..One Year Venezuela Vietnam European Union ..One Month ..Three Month ..One Year

Currency

United States Dollar

Venezuelan Bolivar Fuerte Vietnamese Dong Euro

DOLLAR Closing Mid 0.6371 0.6370 0.6368 12.0000 21365.0000 0.8076 0.8076 0.8075 0.8070

Day's Change -0.0001 -0.0001 -0.0001 0.0022 0.0022 0.0022 0.0022

EURO POUND Closing Day's Closing Day's Mid Change Mid Change 0.7889 -0.0023 0.7888 -0.0023 0.7884 -0.0023 1.2383 -0.0034 1.5696 0.0003 1.2382 -0.3311 1.5696 0.0003 1.2382 -0.3311 1.5695 0.0003 1.2377 -0.3311 1.5693 0.0003 14.8590 -0.0408 18.8353 0.0033 26455.3064 -72.5664 33534.8779 5.8468 1.2676 0.0037 1.2676 0.0037 1.2675 0.0037 1.2671 0.0037

Rates are derived from WM/Reuters at 4pm (London time). Currency redenominated by 1000. Some values are rounded by the F.T. The exchange rates printed in this table are also available on the internet at http://www.FT.com/marketsdata

UK SERIES

FTSE ACTUARIES SHARE INDICES

www.ft.com/equities

Produced in conjunction with the Institute and Faculty of Actuaries

£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E Dec 11 chge% Index Dec 10 Dec 09 ago yield% Cover ratio FTSE 100 (100) 6461.70 -0.59 6383.02 6500.04 6529.47 6445.25 3.61 1.86 14.91 FTSE 250 (250) 15663.52 -0.47 15472.80 15737.52 15714.28 15211.54 2.68 2.08 17.97 16867.72 -0.50 16662.33 16952.92 16926.92 16513.06 2.73 2.21 16.59 FTSE 250 ex Inv Co (212) FTSE 350 (350) 3532.21 -0.57 3489.20 3552.49 3565.20 3508.70 3.46 1.88 15.32 FTSE 350 ex Investment Trusts (312) 3511.62 -0.58 3468.86 3532.02 3545.01 3493.71 3.49 1.90 15.13 FTSE 350 Higher Yield (96) 3450.05 -0.56 3408.04 3469.42 3492.94 3515.19 4.76 1.70 12.37 FTSE 350 Lower Yield (254) 3269.31 -0.58 3229.51 3288.54 3289.08 3157.45 2.08 2.34 20.55 FTSE SmallCap (292) 4294.37 -0.73 4242.08 4326.07 4318.18 4320.54 2.46 1.69 24.03 FTSE SmallCap ex Inv Co (152) 3720.05 -0.85 3674.75 3751.77 3748.86 3905.80 2.35 2.42 17.62 FTSE All-Share (642) 3470.90 -0.58 3428.63 3491.02 3502.88 3448.92 3.43 1.88 15.51 FTSE All-Share ex Inv Co (464) 3437.18 -0.58 3395.32 3457.31 3469.75 3422.68 3.47 1.90 15.17 FTSE All-Share ex Multinationals (577) 1114.62 -0.45 912.56 1119.66 1118.48 1098.72 2.92 2.04 16.74 FTSE Fledgling (97) 6768.01 -0.49 6685.60 6801.45 6779.09 6365.08 2.44 -0.68 -60.11 FTSE Fledgling ex Inv Co (53) 8419.72 -0.74 8317.20 8482.27 8416.70 7584.40 1.82 -3.93 -13.97 FTSE All-Small (389) 2969.47 -0.72 2933.31 2991.02 2985.35 2975.34 2.46 1.57 25.84 FTSE All-Small ex Inv Co Index (205) 2761.80 -0.84 2728.18 2785.23 2782.25 2872.00 2.33 2.21 19.48 FTSE AIM All-Share Index (841) 698.05 -0.75 689.55 703.36 706.86 823.58 1.16 2.28 37.82 FTSE Sector Indices Oil & Gas (22) 7219.01 Oil & Gas Producers (15) 6859.66 Oil Equipment Services & Distribution (7)16713.68 Basic Materials (31) 4562.09 11693.82 Chemicals (7) Forestry & Paper (1) 12541.02 Industrial Metals & Mining (2) 1381.42 Mining (21) 13144.27 Industrials (115) 4167.30 Construction & Materials (14) 4131.85 Aerospace & Defense (9) 4730.62 General Industrials (6) 3108.39 Electronic & Electrical Equipment (12) 4855.48 Industrial Engineering (14) 8852.22 Industrial Transportation (8) 3952.85 Support Services (52) 6189.66 Consumer Goods (38) 16105.01 Automobiles & Parts (1) 7889.11 Beverages (6) 14333.58 Food Producers (10) 8141.09 Household Goods & Home Construction (12)10351.08 Leisure Goods (2) 4996.20 Personal Goods (5) 21531.95 Tobacco (2) 40534.08 Health Care (19) 9363.33 Health Care Equipment & Services (9) 6189.53 Pharmaceuticals & Biotechnology (10)12826.65 Consumer Services (96) 4413.12 Food & Drug Retailers (7) 2700.60 General Retailers (30) 2782.06 Media (24) 6516.01 Travel & Leisure (35) 7639.35 Telecommunications (8) 3759.23 Fixed Line Telecommunications (6) 4735.21 Mobile Telecommunications (2) 5017.43 Utilities (8) 8686.55 Electricity (3) 9995.29 Gas Water & Multiutilities (5) 7901.65 Financials (283) 4611.92 Banks (7) 4329.31 Nonlife Insurance (12) 2139.17 Life Insurance/Assurance (12) 7656.01 Index- Real Estate Investment & Services (25) 2613.28 Real Estate Investment Trusts (20) 2710.49 General Financial (29) 7064.02 Equity Investment Instruments (178) 7451.05 Non Financials (359) 4012.48 Technology (22) 1195.75 Software & Computer Services (14) 1326.81 Technology Hardware & Equipment (8) 1471.03

-0.31 -0.33 0.14 -2.20 -0.35 -0.93 -4.10 -2.44 -0.89 -0.24 -1.74 -1.23 -0.59 -1.12 -0.25 -0.60 -0.88 0.21 -0.76 -1.44 -0.01 0.21 -0.54 -1.61 0.65 -0.53 0.76 -0.34 -1.28 0.39 -0.55 -0.27 0.11 0.19 0.07 -0.93 -0.89 -0.94 -0.59 -0.70 -0.97 -0.15 -0.88 -0.65 -0.98 -0.41 -0.57 0.20 0.10 0.27

7131.10 6776.14 16510.16 4506.54 11551.43 12388.31 1364.60 12984.22 4116.56 4081.54 4673.02 3070.54 4796.36 8744.43 3904.71 6114.29 15908.91 7793.05 14159.05 8041.96 10225.04 4935.36 21269.77 40040.52 9249.32 6114.16 12670.46 4359.38 2667.72 2748.18 6436.67 7546.34 3713.46 4677.55 4956.33 8580.78 9873.58 7805.44 4555.76 4276.60 2113.12 7562.78 2581.46 2677.49 6978.00 7360.32 3963.63 1181.19 1310.65 1453.12

7241.63 6882.27 16689.96 4664.72 11734.78 12658.55 1440.41 13472.79 4204.68 4141.75 4814.45 3147.19 4884.07 8952.46 3962.72 6227.06 16247.85 7872.66 14442.95 8260.31 10351.74 4985.65 21648.92 41199.44 9302.49 6222.63 12730.52 4428.04 2735.64 2771.11 6551.88 7660.41 3755.06 4726.46 5014.11 8768.20 10085.00 7976.91 4639.45 4359.74 2160.04 7667.19 2636.59 2728.34 7133.63 7482.08 4035.50 1193.36 1325.49 1467.04

7410.24 7042.87 17053.62 4726.16 11779.38 12305.95 1447.17 13682.58 4197.92 4162.33 4848.38 3105.11 4856.02 8998.80 3952.29 6190.68 16299.31 8025.41 14465.99 8231.16 10390.00 5109.98 21734.63 41370.23 9254.90 6278.98 12650.02 4417.28 2732.98 2768.10 6515.21 7652.98 3758.83 4706.43 5035.03 8773.28 10043.09 7992.71 4638.42 4373.19 2144.55 7649.85 2636.75 2718.97 7110.66 7467.69 4054.32 1188.60 1336.84 1448.15

8381.33 7927.37 22044.87 5054.69 11031.36 10631.07 1300.01 14931.26 4367.74 4177.49 5274.35 3454.55 5413.20 10101.55 4706.51 6084.23 14561.60 8387.32 13885.79 7030.51 8861.72 5789.79 20587.88 35119.74 8132.81 4788.43 11235.89 4420.37 4451.55 2582.23 6171.50 6736.77 3814.75 4324.15 5314.94 7816.80 8908.66 7129.58 4443.70 4591.19 2017.81 6549.89 2597.96 2218.12 6291.05 6990.57 4030.56 1143.66 1244.86 1424.99

4.68 1.76 4.69 1.75 4.24 1.97 3.98 2.79 2.20 2.43 3.03 3.19 0.72 14.83 4.24 2.79 2.64 2.07 3.72 0.34 2.29 4.02 3.62 1.86 2.33 2.12 2.68 2.34 3.86 1.48 2.42 1.77 3.04 1.86 2.41 3.62 2.40 1.93 1.96 1.83 2.46 2.47 4.28 1.09 3.10 2.65 4.18 1.30 3.62 1.25 1.44 2.46 3.80 1.21 2.80 2.02 5.94 2.08 2.35 2.41 2.92 1.49 1.97 2.35 4.11 2.53 2.80 1.90 4.89 2.74 4.91 1.24 4.99 0.69 4.89 1.40 3.16 1.78 3.43 1.18 3.12 1.44 3.33 1.84 1.80 5.52 3.05 5.83 3.09 1.88 2.45 1.04 3.52 1.91 1.38 2.04 2.09 1.96 0.89 2.17

X/D adj 231.29 407.73 449.07 121.04 121.27 162.52 69.19 101.99 88.68 117.84 118.11 31.59 171.15 159.77 70.72 65.06 8.57

Total Return 4876.06 10618.03 11656.28 5382.36 2754.53 5315.63 3388.18 5721.42 5208.28 5351.56 2741.18 1845.91 11915.11 14429.05 5081.04 4900.31 741.32

12.17 345.25 5744.64 12.18 329.40 5642.98 11.98 702.50 11787.04 9.00 178.82 4267.70 18.75 249.46 9859.54 10.36 379.57 12744.78 9.35 9.30 1195.62 8.45 551.27 6403.24 18.30 107.75 4037.02 79.02 156.30 4121.22 10.85 107.80 4780.93 14.86 111.44 3273.68 20.25 103.79 4196.28 15.92 238.29 10092.02 17.50 152.66 3198.65 23.42 143.69 6061.95 17.67 482.62 11001.93 11.44 190.35 7072.99 21.59 343.99 9504.82 27.80 230.52 6679.90 16.45 234.15 6870.22 21.40 205.93 4044.12 12.17 465.25 13495.09 18.46 1693.62 23593.58 22.08 341.77 6583.97 28.23 93.07 5169.59 21.68 489.33 7995.97 17.69 122.32 3888.64 8.10 158.56 3037.12 17.63 64.62 2976.21 23.02 187.38 3740.64 21.66 147.13 6806.31 9.65 144.07 3772.25 18.83 97.14 3955.99 7.45 245.60 4476.06 16.43 418.54 8809.81 29.07 500.46 12565.63 14.56 376.09 8061.56 17.77 145.58 3892.92 24.63 150.03 2866.82 22.28 67.47 3488.25 16.30 254.83 6787.91 10.07 49.28 6580.38 5.63 82.07 3110.42 17.19 218.14 7461.83 39.23 170.89 3815.58 14.85 139.51 5420.34 35.47 15.66 1473.65 24.51 26.11 1700.85 51.84 12.98 1673.84

8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Hourly movements FTSE 100 6498.06 6515.91 6497.96 6466.90 6444.52 6444.95 6456.97 6467.96 6469.26 6521.40 6441.44 FTSE 250 15712.44 15730.42 15687.35 15662.58 15626.96 15631.31 15658.17 15666.83 15664.39 15742.64 15617.63 FTSE SmallCap 4316.63 4315.67 4317.24 4313.80 4308.29 4305.71 4306.23 4305.93 4294.47 4318.02 4289.90 FTSE All-Share 3489.04 3497.43 3488.17 3473.66 3462.52 3462.79 3468.97 3474.09 3474.23 3499.92 3460.90 Time of FTSE 100 Day's high:08:40:15 Day's Low12:25:00 FTSE 100 2010/11 High: 6878.49(14/05/2014) Low: 6195.91(16/10/2014) Time of FTSE All-Share Day's high:08:56:00 Day's Low12:25:00 FTSE 100 2010/11 High: 3685.07(24/02/2014) Low: 3308.67(16/10/2014) Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown. For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS Issue price p 0.90 0.044 0.0675 0.006 -

Amount paid up -

Latest renun. date 2014-10-29 2014-10-31 2014-12-01 -

FT 30 INDEX

FTSE SECTORS: LEADERS & LAGGARDS

Dec 11 Dec 10 Dec 09 Dec 08 Dec 05 Yr Ago High Low Year to date percentage changes FT 30 2692.70 2715.70 2723.50 2788.40 2809.40 0.00 2856.60 2433.00 Health Care Eq & Srv 29.86 FT 30 Div Yield 1.87 1.86 1.85 1.81 1.80 0.00 3.93 2.74 Real Est Invest & Tr 21.22 P/E Ratio net 23.83 24.02 24.09 24.59 24.77 0.00 19.44 14.26 Tobacco 17.66 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Food Producers 15.11 FT 30 hourly changes Health Care 14.86 8 9 10 11 12 13 14 15 16 High Low Household Goods & Ho 13.85 2715.7 2717 2711.6 2700 2690 2690.4 2698.3 2701.1 2697.7 2719.9 2687.9 Pharmace & Biotech 13.82 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Electricity 12.72 Life Insurance 12.59 Travel & Leisure 10.23 Consumer Goods 10.13 Utilities 9.95 Dec 10 Dec 09 Mnth Ago Dec 11 Dec 10 Mnth Ago Gas Water & Multi 9.19 Australia 99.90 100.46 102.35 Sweden 81.03 81.31 81.50 Financial Services 9.17 Canada 101.17 101.58 101.99 Switzerland 147.21 147.36 146.65 General Retailers 8.43 Denmark 108.62 108.53 107.96 UK 87.36 87.26 87.66 Fixed Line Telecomms 7.83 Japan 122.80 122.53 126.64 USA 95.80 95.71 94.47 Equity Invest Instr 5.83 New Zealand 123.45 123.59 121.35 Euro 93.89 93.89 92.95 Norway 92.52 93.47 96.51 Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

FX: EFFECTIVE INDICES

Forestry & Paper Software & Comp Serv Personal Goods Nonlife Insurance Financials Media Beverages Chemicals FTSE 250 Index FTSE All{HY-}Share Index FTSE 100 Index Real Est Invest & Se NON FINANCIALS Index Consumer Services FTSE SmallCap Index Leisure Goods Support Services Industrial Metals &

High 21.68 0.42 6.00 0.40 515.50

Low 21.68 0.41 5.50 0.35 502.50

Stock Ceramic Fuel Cells Ltd Ferrum Crescent Ltd Plaza Centers NV Scotgold Resources Ltd UBM PLC

+or0.02 -0.875 -0.025 4.50

Telecommunications Construct & Material Technology Automobiles & Parts Banks Mobile Telecomms Industrials Tech Hardware & Eq Basic Materials Aerospace & Defense Mining Oil & Gas Producers Oil & Gas Industrial Eng Electronic & Elec Eq Industrial Transport Oil Equipment & Serv Food & Drug Retailer

-2.10 -2.72 -2.93 -4.45 -5.22 -5.72 -7.05 -8.41 -9.79 -10.28 -11.30 -12.09 -12.44 -14.20 -15.00 -16.20 -21.77 -36.00

FTSE GLOBAL EQUITY INDEX SERIES Dec 11 Regions & countries FTSE Global All Cap FTSE Global All Cap FTSE Global Large Cap FTSE Global Mid Cap FTSE Global Small Cap FTSE All-World FTSE World FTSE Global All Cap ex UNITED KINGDOM In FTSE Global All Cap ex USA FTSE Global All Cap ex JAPAN FTSE Developed FTSE Developed All Cap FTSE Developed Large Cap FTSE Developed Europe Large Cap FTSE Developed Europe Mid Cap FTSE Dev Europe Small Cap FTSE North America Large Cap FTSE North America Mid Cap FTSE North America Small Cap FTSE North America FTSE Developed ex North America FTSE Japan Large Cap FTSE Japan Mid Cap FTSE Global wi JAPAN Small Cap FTSE Japan FTSE Asia Pacific Large Cap ex Japan FTSE Asia Pacific Mid Cap ex Japan FTSE Asia Pacific Small Cap ex Japan FTSE Asia Pacific Ex Japan FTSE Emerging All Cap FTSE Emerging Large Cap FTSE Emerging Mid Cap FTSE Emerging Small Cap FTSE Emerging Europe FTSE Latin America All Cap FTSE Middle East and Africa All Cap FTSE Global wi UNITED KINGDOM All Cap In FTSE Global wi USA All Cap FTSE Europe All Cap FTSE Eurobloc All Cap FTSE RAFI All World 3000 FTSE RAFI US 1000 FTSE EDHEC-Risk Efficient All-World FTSE EDHEC-Risk Efficient Developed Europe

No of stocks 7535 6906 1349 1669 4517 3018 2540 7206 5554 6291 2113 5641 901 201 318 704 332 398 1496 730 1383 174 301 769 475 475 446 1319 921 1894 448 457 989 86 245 210 329 1981 1370 629 3030 1030 3018 519

US $ indices 466.55 479.12 415.33 608.90 639.73 273.33 483.03 477.79 449.38 479.72 435.73 456.22 405.24 360.27 503.14 688.79 437.60 659.70 668.39 293.49 236.24 308.92 423.72 466.04 126.21 614.28 802.07 532.29 484.15 688.94 652.91 862.12 709.06 341.73 897.72 752.47 357.17 499.85 405.13 377.12 5858.13 9089.11 316.49 281.75

Day % -1.3 -1.4 -1.3 -1.3 -1.5 -1.3 -1.3 -1.4 -0.9 -1.3 -1.4 -1.4 -1.3 -0.5 -0.3 0.0 -1.7 -1.9 -2.2 -1.7 -0.8 -2.0 -1.9 -1.1 -2.0 -0.3 -0.1 0.1 -0.2 -0.5 -0.6 -0.4 -0.1 -0.6 -2.3 -1.0 -0.3 -1.7 -0.4 -0.4 -1.3 -1.7 -1.1 -0.3

Mth % -1.3 -1.7 -1.3 -1.1 -1.9 -1.2 -1.2 -1.2 -1.8 -1.4 -1.0 -1.1 -1.0 -0.2 1.3 1.0 -0.9 -1.9 -2.5 -1.0 -0.8 -0.2 0.6 -0.4 -0.1 -3.1 -2.6 -3.1 -3.0 -3.8 -4.4 -2.3 -1.9 -8.9 -10.2 -5.3 -2.5 -0.8 -0.1 2.1 -1.7 -1.2 -0.6 0.8

YTD Total % retn 1.3 622.47 2.5 628.29 1.8 565.83 0.8 779.21 -1.3 795.07 1.6 384.49 1.6 912.40 2.1 629.16 -5.5 633.22 1.7 645.36 1.9 585.56 1.5 606.90 2.1 551.35 -7.4 548.92 -5.9 703.18 -8.1 938.45 8.8 562.90 5.5 800.28 1.4 788.56 8.3 387.28 -6.3 356.98 -5.0 378.48 -1.4 503.28 -2.6 570.48 -4.3 173.87 0.0 888.46 1.0 1124.48 -2.9 735.98 0.1 744.75 -1.4 953.73 -1.6 908.85 -1.0 1190.56 -0.8 947.57 -25.3 479.11 -15.8 1285.80 2.6 1090.45 -8.7 544.34 8.4 627.29 -7.8 599.84 -8.6 566.18 -0.9 7158.51 7.7 11202.07 4.7 415.80 -4.3 400.68

YTD Gr Div Dec 11 No of US $ Day Mth YTD Total YTD Gr Div % Yield Sectors stocks indices % % % retn % Yield 176 382.62 -2.7 -2.7 -19.4 563.23 -16.9 3.7 3.7 2.4 Oil & Gas 121 348.50 -2.6 -2.6 -19.5 521.45 -17.0 3.8 4.8 2.3 Oil & Gas Producers 46 395.81 -3.2 -3.2 -18.9 533.37 -16.9 3.4 4.4 2.5 Oil Equipment & Services 270 438.16 -1.3 -1.3 -10.3 622.98 -8.0 2.8 2.7 2.0 Basic Materials 115 625.70 -1.3 -1.3 -2.3 896.92 0.1 2.4 0.4 1.9 Chemicals 18 208.13 -0.3 -0.3 -1.4 324.23 1.7 2.9 4.1 2.4 Forestry & Paper 75 421.72 -2.1 -2.1 -16.8 600.46 -14.9 2.6 4.0 2.4 Industrial Metals & Mining 4.4 2.3 Mining 62 571.01 -1.1 -1.1 -22.5 800.92 -20.0 4.1 -2.8 2.9 Industrials 533 311.13 -1.5 -1.5 -1.6 422.59 0.5 2.1 4.2 2.4 Construction & Materials 114 425.79 -0.9 -0.9 -5.6 606.04 -3.6 2.2 4.3 2.4 Aerospace & Defense 28 490.19 -2.5 -2.5 -0.1 661.24 1.9 2.0 3.9 2.3 General Industrials 55 215.49 -1.0 -1.0 -4.0 312.49 -1.7 2.6 4.7 2.5 Electronic & Electrical Equipment 67 326.82 -1.7 -1.7 1.7 411.05 3.5 1.7 -4.2 3.4 Industrial Engineering 103 619.88 -1.9 -1.9 -6.7 826.92 -4.8 2.1 -3.6 2.6 Industrial Transportation 95 580.22 -1.6 -1.6 8.3 787.27 10.6 2.0 -6.0 2.4 Support Services 71 266.78 -0.9 -0.9 -1.6 349.39 0.6 2.1 11.1 2.1 Consumer Goods 405 406.94 -1.1 -1.1 1.5 564.00 3.9 2.4 7.2 1.7 Automobiles & Parts 97 391.56 -2.0 -2.0 -4.2 521.44 -2.0 2.2 2.7 1.6 Beverages 47 540.64 -0.6 -0.6 2.8 759.59 5.4 2.5 10.4 2.0 Food Producers 100 553.05 -0.8 -0.8 4.0 790.99 6.5 2.2 -3.5 2.9 Household Goods & Home Construction 45 390.77 -1.0 -1.0 6.4 539.37 9.2 2.4 -3.1 1.8 Leisure Goods 26 126.58 -1.5 -1.5 -1.1 159.63 0.1 1.1 0.1 1.4 Personal Goods 77 586.04 -0.5 -0.5 -2.7 780.06 -0.9 2.0 -1.0 1.6 Tobacco 13 1110.11 -0.9 -0.9 8.8 2063.53 13.0 4.1 160 442.56 -1.2 -1.2 19.1 604.71 21.4 1.8 -2.5 1.7 Health Care 3.0 3.0 Health Care Equipment & Services 58 584.16 -1.7 -1.7 20.8 662.46 22.1 1.1 3.6 2.6 Pharmaceuticals & Biotechnology 102 343.31 -1.0 -1.0 18.6 486.21 21.3 2.0 -0.4 2.7 Consumer Services 382 363.44 -1.0 -1.0 2.3 463.86 4.0 1.7 3.1 3.0 Food & Drug Retailers 56 288.80 -1.0 -1.0 1.8 383.24 4.0 2.1 1.4 3.0 General Retailers 119 463.38 -1.1 -1.1 1.7 578.26 3.4 1.6 1.3 3.1 Media 88 292.93 -1.0 -1.0 5.1 373.96 6.5 1.5 1.6 2.7 Travel & Leisure 119 352.40 -1.0 -1.0 -0.1 454.09 1.7 1.8 1.7 2.7 Telecommunication 95 168.18 -0.9 -0.9 -4.5 283.88 -0.6 4.2 -22.6 3.7 Fixed Line Telecommuniations 45 137.49 -0.9 -0.9 -0.5 252.49 4.1 4.8 -13.2 4.0 Mobile Telecommunications 50 182.93 -0.8 -0.8 -8.7 281.89 -5.4 3.4 161 264.75 -0.9 -0.9 8.1 466.65 12.3 3.7 5.5 2.7 Utilities 112 280.25 -0.8 -0.8 11.9 489.48 16.2 3.7 -5.6 3.5 Electricity 49 295.90 -0.9 -0.9 2.8 533.38 6.8 3.8 10.4 1.9 Gas Water & Multiutilities 658 215.89 -1.0 -1.0 1.9 325.56 4.8 2.7 -4.9 3.2 Financials 241 201.90 -1.1 -1.1 -2.2 323.31 0.9 3.1 -5.8 3.0 Banks 69 213.97 -0.8 -0.8 7.0 290.87 9.5 2.1 1.8 2.9 Nonlife Insurance 48 207.84 -1.0 -1.0 0.5 306.93 3.1 2.5 10.0 2.3 Life Insurance 136 231.43 -1.2 -1.2 6.5 301.98 8.4 1.7 6.9 2.2 Financial Services 178 170.42 -1.5 -1.5 15.0 199.75 16.9 1.6 -1.7 2.7 Technology Software & Computer Services 78 267.72 -1.4 -1.4 5.8 303.77 7.0 1.1 Technology Hardware & Equipment 100 139.10 -1.6 -1.6 23.6 166.74 26.3 1.9 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2, WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence.

UK COMPANY RESULTS closing Price p 21.68 0.42 5.50 0.40 515.50

5.35 5.06 3.15 3.11 2.76 2.07 1.88 1.80 0.42 -0.07 -0.09 -0.14 -1.04 -1.22 -1.43 -1.67 -1.89 -2.07

FTSE 100 SUMMARY

Company Abzena Darty Lowland Investment Co Marechale Capital Octopus VCT 3 Octopus VCT 4 Polar Capital Holdings Science in Sport Sports Direct International Sunrise Resources SuperGroup Titon Holdings Versarien

FTSE 100

Closing Day's Price Change FTSE 100

3i Group PLC Aberdeen Asset Management PLC Admiral Group PLC Aggreko PLC Anglo American PLC Antofagasta PLC ARM Holdings PLC Ashtead Group PLC Associated British Foods PLC AstraZeneca PLC Aviva PLC Babcock International Group PLC BAE Systems PLC Barclays PLC BG Group PLC BHP Billiton PLC BP PLC British American Tobacco PLC British Land Company PLC British Sky Broadcasting Group PLC BT Group PLC Bunzl PLC Burberry Group PLC Capita PLC Carnival PLC Centrica PLC Coca-Cola HBC AG Compass Group PLC CRH PLC Diageo PLC Direct Line Insurance Group PLC Dixons Carphone PLC easyJet PLC Experian PLC Fresnillo PLC Friends Life Group Ltd G4S PLC GKN PLC GlaxoSmithKline PLC Glencore PLC Hammerson PLC Hargreaves Lansdown PLC HSBC Holdings PLC IMI PLC Imperial Tobacco Group PLC InterContinental Hotels Group PLC International Consolidated Airlines Group SA Intertek Group PLC Intu Properties PLC ITV PLC Johnson Matthey PLC

434.90 423.90 1262 1445 1173 713.50 959.00 1172 3151 4688 487.10 1079 454.90 237.25 843.70 1361 398.80 3510.5 758.00 918.00 411.10 1760 1621 1029 2789 274.40 1328 1062 1491 1877.5 288.90 435.90 1668 1028 745.00 367.30 279.20 335.70 1393 294.85 604.00 953.00 615.30 1213 2789 2527 462.00 2220 335.00 208.30 3283

-14.20 -14.70 5.00 -5.00 -34.50 -13.00 -0.50 -3.00 -50.00 5.00 -6.40 -33.00 -6.10 -0.45 -28.70 -25.50 -0.80 -72.50 -2.00 1.00 -34.00 -24.00 -9.00 45.00 -3.50 -5.00 -13.00 -4.00 -25.50 -1.10 6.30 25.00 -6.00 -25.00 -4.80 0.80 0.70 7.00 -11.45 -2.00 4.00 -5.60 -16.00 -17.00 13.00 1.50 27.00 -2.80 -1.00 -22.00

Closing Day's Price Change

Kingfisher PLC Land Securities Group PLC Legal & General Group PLC Lloyds Banking Group PLC London Stock Exchange Group PLC Marks and Spencer Group PLC Meggitt PLC Mondi PLC Morrison (Wm) Supermarkets PLC National Grid PLC Next PLC Old Mutual PLC Pearson PLC Persimmon PLC Petrofac Ltd Prudential PLC Randgold Resources Ltd Reckitt Benckiser Group PLC Reed Elsevier PLC Rio Tinto PLC Rolls-Royce Holdings PLC Royal Bank Of Scotland Group PLC Royal Dutch Shell PLC (A) Royal Dutch Shell PLC (B) Royal Mail PLC RSA Insurance Group PLC SABMiller PLC Sage Group PLC Sainsbury (J) PLC Schroders PLC Severn Trent PLC Shire PLC Smith & Nephew PLC Smiths Group PLC Sports Direct International PLC SSE PLC St. James's Place PLC Standard Chartered PLC Standard Life PLC Tesco PLC Travis Perkins PLC TUI Travel PLC Tullow Oil PLC Unilever PLC United Utilities Group PLC Vodafone Group PLC Weir Group PLC Whitbread PLC Wolseley PLC WPP PLC

322.20 1146 246.60 78.20 2155 477.50 491.40 1067 174.80 900.50 6545 186.50 1170 1573 724.00 1501.5 4261 5150 1079 2748 831.50 382.90 2045 2102 397.90 437.00 3346.5 438.90 226.30 2643 1915 4565 1050 1058 666.00 1620 805.50 926.60 406.10 171.30 1786 437.60 372.80 2654 872.00 222.95 1695 4605 3608 1320

0.70 -13.00 5.30 -0.40 -43.00 2.50 -5.80 -10.00 -1.90 -6.50 75.00 -0.90 -14.00 14.00 7.00 -1.50 -110.00 5.00 -10.00 -49.50 -24.50 -2.90 10.00 3.50 -1.10 -6.20 6.00 1.50 -0.10 -23.00 -33.00 136.00 -5.00 -30.00 -9.00 -16.00 -9.50 -7.40 -2.40 -4.40 -25.00 -5.60 -6.70 -6.00 -10.00 0.30 2.00 36.00 -15.00 -6.00

UK STOCK MARKET TRADING DATA Dec 11 Dec 10 Dec 09 Dec 08 Dec 05 Yr Ago SEAQ Bargains 6341.00 6663.00 5958.00 5782.00 5782.00 5782.00 Order Book Turnover (m) 66.97 48.48 71.16 54.48 54.48 54.48 Order Book Bargains 801194.00 824852.00 548553.00 673098.00 673098.00 673098.00 Order Book Shares Traded (m) 1381.00 1674.00 1150.00 1351.00 1351.00 1351.00 Total Equity Turnover (£m) 3895.43 3390.39 3644.16 3644.16 3644.16 Total Mkt Bargains 937254.00 - 677613.00 805020.00 805020.00 805020.00 Total Shares Traded (m) 3671.00 2396.00 3536.00 3536.00 3536.00 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable. (c) Market closed.

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

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

UK RECENT EQUITY ISSUES Int Int Pre Int Pre Pre Int Int Int Pre Int Pre Int

Turnover 0.783 2.441 1588.4 1644.4 0.245 41.803 4.919 1432.898 208.2 19.256 2.479

0.434 31.646 3.997 1345.102 192.1 15.74 1.081

Pre-tax 2.63L 2.97L 8.6L 5.5L 87.301 19.741 0.019 0.046L 0.122 0.147 0.12 0.147 10.085 11.592 0.378L 0.78L 149.732 143.064 0.924L 0.7L 9.9 17.2 0.505 1.333 0.368L 0.296L

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

EPS(p) 7.047L 0.008L 39.4 0.08L 1.6 1.6 10.55 3L 19.4 0.17L 17.2 8.52 0.28L

2.5L 0.033L 36.7 0.04 1.3 1.3 9.53 2L 18.6 0.25L 2.6 2.87 0.52L

Div(p) 0.875 10 5 5 5.5 1.5 -

0.875 9 5 5 4 1 -

Pay day Apr 1 -

Total 3.5 19 5 5 26.5 2.5 -

3.5 17.5 5 5 15 2 -

Issue date 12/11 12/11 12/11 12/08 12/08 12/04 12/04 12/02 11/13 11/12 11/10 11/07 11/06 11/03

Issue price(p) 126.00 30.00 100.00 135.00 267.00 6.00 130.00 128.00 283.00 160.00 120.00 134.00 116.00 236.00

Sector

AIM AIM AIM AIM AIM AIM AIM AIM AIM AIM

Stock code

CHT MTPH PCGE TPOP CHOC VM/ MAB1 HAV FEVR QTX NKTN

Stock Focusrite PLC Management Resource Solutions PLC Quantum Pharma PLC Constellation Healthcare Technologies Inc Midatech Pharma PLC PCG Entertainment PLC People's Operator (The) PLC United Cacao Ltd SEZC Virgin Money Holdings (UK) PLC Mortgage Advice Bureau (Holdings) PLC Haversham Holdings PLC Fevertree Drinks PLC Quartix Holdings PLC Nektan PLC

§Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir For a full explanation of all the other symbols please refer to London Share Service notes.

Close price(p) 136.50 29.50 140.00 266.50 5.00 131.50 175.00 283.50 176.00 128.00 173.50 167.50 165.00

+/-2.50 -0.38 0.40 -6.25 0.50 1.00 0.00 2.50 -1.00 -7.50

High 139.00 31.90 0.00 285.00 6.70 145.00 207.50 291.00 178.38 130.00 184.00 181.50 252.00

Low 134.00 0.00 0.00 265.00 5.37 130.00 128.10 279.00 160.00 120.00 160.00 117.00 160.00

Mkt Cap (£m) 7927.2 968.1 7786.1 7407.2 5153.5 10138.5 3225.3 125193.8 8889.7 3205.3 19994.3 7820.9 3502.7

★★★

Friday 12 December 2014

27

FINANCIAL TIMES

MARKET DATA FT500: THE WORLD'S LARGEST COMPANIES Stock

52 Week High Low

Price Day Chg

Argentina ($a) YPF 310.00 13.00 Australia (A$) ANZ♦ 31.21 -0.28 BHPBilltn 29.00 -0.39 CmwBkAu 82.19 -0.16 CSL 85.76 1.06 NatAusBk♦ 32.09 -0.21 Telstra 5.69 0.07 Wesfarmers♦ 41.60 -0.13 Westpc♦ 32.24 -0.28 WoodsdPet 34.19 -0.71 Woolworths 29.99 0.11 Belgium (€) AnBshInBv 91.41 -0.30 Brazil (R$) Ambev 15.99 0.19 BncBrasil 24.95 1.02 BncoDoBrasl 32.10 0.45 Bradesco 35.08 0.67 Cielo 41.80 0.20 ItauHldFin 31.95 0.24 Itausa♦ 9.70 0.01 Petrobras 10.04 -0.07 SntnderBras♦ 7.10 -0.10 Vale 19.37 -0.56 Canada (C$) BCE♦ 52.23 0.73 BkMontrl 78.21 0.55 BkNvaS 64.32 0.21 Brookfield♦ 55.91 0.69 CanadPcR 201.31 -0.57 CanImp 99.94 -0.27 CanNatRs♦ 34.24 0.40 CanNatRy♦ 74.20 0.58 Enbridge 55.38 0.26 GtWesLif♦ 32.55 0.32 HuskyE♦ 21.92 -0.10 ImpOil♦ 47.70 -0.39 Manulife♦ 21.66 0.07 Potash 40.42 RylBkC 78.49 -0.12 Suncor En♦ 32.56 0.15 ThmReut♦ 45.14 0.60 TntoDom 52.50 0.04 TrnCan 52.43 0.59 ValeantPh 160.18 1.71 China (HK$) AgricBkCh 3.71 -0.04 Bk China 4.10 -0.06 BkofComm 6.70 -0.11 ChConstBk 6.07 -0.04 ChinaCitic 5.79 -0.09 ChinaLife 27.00 -0.15 ChinaMBank 16.82 -0.10 ChinaMob 91.20 -0.55 ChinaPcIns 32.65 -0.90 ChMinsheng 9.06 -0.18 ChShenEgy 22.65 -0.10 ChUncHK 10.64 -0.02 In&CmBkCh 5.33 -0.03 IndstrlBk RMB 13.25 -0.07 Kweichow RMB 175.89 -4.03 PetroChina 8.07 -0.09 PingAnIns 73.70 0.60 SaicMotor RMB 22.47 -0.52 ShgPdgBk RMB 13.05 -0.11 Sinopec 6.10 -0.07 Denmark (kr) DanskeBk 168.40 0.80 MollerMrsk 11140 -510.00 NovoB 275.80 -0.40 Finland (€) Nokia 6.55 -0.05 SampoA 39.28 0.35 France (€) Airbus Grpe 41.32 -1.86 AirLiquide 98.97 -0.83 AXA 19.07 0.10 BNP Parib 49.45 -0.01 ChristianDior♦ 148.75 -1.40 Cred Agr 10.72 -0.08 Danone 55.41 -0.45 EDF 23.59 -0.20 Essilor Intl 89.25 -0.09 GDF Suez 19.45 -0.09 Kering 158.85 -1.30 LOreal 135.40 -0.70 LVMH 141.00 -0.10

Yld

P/E MCap m

561.00

275.00

35.07 39.79 83.92 88.66 36.00 5.80 46.69 35.99 44.23 38.92

28.84 28.40 72.14 63.77 31.50 4.92 40.33 30.00 33.72 29.45

5.72 4.43 4.89 1.42 6.27 5.26 4.86 5.67 6.34 4.76

94.64

69.14

1.81 21.40 181848.84

17.85 38.19 35.98 41.30 47.10 38.74 11.78 23.50 8.50 36.11

14.99 18.61 21.54 27.13 30.98 23.91 7.73 9.60 5.50 19.13

1.94 5.59 3.87 1.00 3.16 1.46 2.06 5.75 3.90 6.13

19.83 5.15 19.04 9.99 19.91 8.32 7.59 6.15 12.89 -9.73

94809.15 26980.19 24228.24 27849.48 24801.6 33399.74 8611.4 28199.24 10369.07 23517.62

54.24 85.71 74.93 58.08 247.56 107.37 49.57 86.00 65.13 33.98 37.31 57.96 23.09 41.82 83.87 47.18 46.50 58.20 63.86 170.45

44.75 67.04 59.92 39.51 155.02 85.03 33.42 57.07 43.24 28.61 21.67 44.99 18.91 32.35 67.65 31.90 36.86 47.23 46.10 111.97

4.66 3.95 3.99 1.34 0.69 3.96 2.55 1.30 2.46 3.77 5.47 1.09 2.51 3.87 3.63 2.88 3.25 3.52 3.62 -

17.58 11.82 11.33 12.08 32.02 12.68 11.95 20.81 61.75 12.51 10.62 9.74 10.03 22.71 13.04 15.71 81.47 12.65 21.82 97.02

37456.74 44004.6 67904.32 30450.01 29937.47 34404.35 32439.46 52539.18 40666.58 28194.54 18701.14 35066.98 34913.72 29083.82 98160.7 41378.54 31464.54 83976.89 32191.87 46343.38

3.95 4.35 7.13 6.42 6.17 28.80 17.84 102.20 37.25 9.66 24.95 14.22 5.69 14.27 186.62 11.70 77.30 24.30 14.16 8.23

3.04 3.03 4.53 4.89 3.60 19.72 12.12 63.65 23.55 6.73 19.12 9.03 4.33 8.60 118.01 7.31 55.60 12.22 8.39 5.73

5.89 5.84 4.74 6.04 5.38 1.22 4.51 3.32 1.35 1.37 4.42 1.87 5.40 3.05 2.18 4.94 1.13 4.69 4.44 4.38

5.42 14712.52 5.78 44232 6.30 30263.55 5.45 188270.8 5.44 11116.68 21.95 25919.92 5.97 9962.12 13.92 239966.27 23.86 11690.17 4.96 8104.24 8.99 9931.03 17.09 32838.47 5.59 59682.19 5.59 34641.05 12.90 32457.42 9.32 21966.49 13.68 35406.3 9.32 33558.03 5.44 31467.96 9.52 20078.31

171.20 15390 286.20

119.10 10770 189.70

1.17 14.16 28277.73 2.69 14.92 4076.13 1.16 28.42 22614.48

6.98 39.98

4.89 33.21

1.66 26.70 30351.09 4.15 14.39 27179.22

57.33 102.75 20.64 61.82 157.45 12.22 57.44 29.90 93.26 21.19 167.70 139.10 147.20

40.55 83.45 16.43 43.28 126.10 8.75 48.33 21.21 70.51 16.02 136.95 114.55 121.00

Stock

Orange 13.99 PernodRic 93.10 Safran 50.52 Sanofi 75.18 Schneider 61.59 SocGen 36.52 StGobn 32.96 Total SA 42.57 UnibailR 205.30 Vinci 44.24 Vivendi 20.29 Germany (€) Allianz 137.75 BASF 72.40 Bayer 115.80 BMW 90.31 Continental 172.65 Daimler 68.31 Deut Bank 25.56 Deut Tlkm 13.03 DeutsPost 26.78 E.ON 14.59 Fresenius 43.27 HenkelKgaA 79.87 Linde 151.75 MuenchRkv 164.40 RWE 28.08 SAP 57.09 Siemens 93.81 Volkswgn 182.40 Hong Kong (HK$) AIA 43.00 BOC Hold 26.20 ChngKong 132.80 Citic Ltd 13.58 Citic Secs 27.15 CNOOC 10.06 Galaxy Enter 47.00 HangSeng 127.30 HK Exc&Clr 177.10 Hutchison 90.50 SandsCh 40.10 SHK Props 113.70 Tencent 113.40 India (Rs) Bharti Airtel 343.30 HDFC Bk 933.60 Hind Unilevr 796.05 HsngDevFin 1092.6 ICICI Bk 347.95 Infosys 1921.05 ITC 396.60 OilNatGas 349.45 RelianceIn 906.15 SBI NewA 314.05 SunPhrmInds 834.80 Tata Cons 2492.15 Tata Motors 503.90 Wipro 546.30 Indonesia (Rp) Astra Int 7100 Bk Cent Asia 13275 Telekom Idn 2835 Israel (ILS) TevaPha 223.30 Italy (€) Enel 3.77 ENI 14.38 Generali 16.93 IntSPaolo 2.50 Luxottica 43.98 Tenaris 12.33 Unicred 5.65 Japan (¥) AstellasPh 1688.5 Bridgestne 4190 Canon 3807 CntJpRwy 16960 Denso 5649 EastJpRwy 8691 Fanuc 19850 FastRetail 41910 Fuji Heavy Ind 4304 Hitachi 898.60 HondaMtr 3568 JapanTob 3550 KDDI 7643 Keyence 53810 MitsbCp 2174 MitsubEst 2546.5

0.37 13.05 142502.52

1.79 2.62 4.31 3.00 1.59 3.23 2.66 5.38 1.07 7.83 2.40 1.87 2.23

11.83 71008.86 10.06 76872.12 15.00 109982.77 28.60 33604.12 14.32 62672.74 15.08 57414.49 27.86 38583.46 13.45 82729.35 12.26 23249.65 14.61 31263.22

19.73 40150.48 20.40 42247.37 9.06 57664.02 -60.93 76172.07 17.42 32862.86 13.04 34182.89 30.29 41142.04 12.24 54268.83 19.08 23255.89 -5.37 56830.4 23.38 24833.23 27.42 100808.59 20.75 88636.16

52 Week High Low

Price Day Chg

8.39 78.82 43.24 68.29 52.59 32.44 29.51 40.57 174.25 39.98 17.26

5.81 1.82 2.25 3.68 3.78 2.71 1.91 5.93 4.40 4.06 4.87

1.05 0.23 0.15 0.52 1.75 0.27 0.23 0.12 0.52 -0.18 0.18 -0.26 -0.30 1.60 -0.41 1.29 0.70 2.95

139.75 88.28 121.40 96.10 183.25 71.27 40.00 13.88 28.47 15.46 44.31 80.37 158.45 170.40 32.98 63.30 101.35 197.95

115.05 64.27 91.31 74.74 136.85 55.10 22.66 10.07 21.55 12.23 34.52 66.67 137.05 141.10 24.75 50.08 80.17 147.35

3.80 10.16 77950.13 3.68 13.57 82341.11 1.79 26.51 118575.71 2.84 10.29 67319.05 1.07 16.30 42758.13 3.25 9.86 90489.03 2.04-223.60 43638.63 2.84 25.75 73185.73 2.95 15.53 40105.73 4.06 -53.70 36137.88 0.71 21.72 28960.16 1.11 12.73 25693.6 1.95 25.13 34884.31 4.36 8.02 34656.21 2.60 -6.84 20015.18 1.27 21.01 86845.19 3.25 16.13 101814.31 1.62 12.48 66648.15

-0.90 -0.35 -2.60 -0.18 -2.05 -0.16 -0.90 0.30 -1.50 -0.50 -0.20 0.10 -2.10

45.65 27.95 152.00 16.88 33.95 15.88 84.50 133.00 189.00 113.50 68.00 120.20 134.90

34.65 21.50 111.80 9.35 13.72 9.82 42.95 117.60 112.80 90.00 38.70 83.40 91.80

0.93 3.54 2.41 2.37 0.68 5.18 3.97 1.84 2.33 3.96 2.70 0.21

29.17 66820.01 13.07 35737.05 7.76 39682.19 8.61 43630.13 30.88 4127.28 7.05 57946.15 19.29 25739.06 15.89 31398.5 48.77 26688.67 25.69 49777.16 17.20 41733.06 9.96 41409.16 39.71 137056.93

-10.00 420.00 2.20 965.90 -1.75 829.75 -7.45 1177.8 -4.10 366.05 -42.70 2201.1 1.60 400.00 -11.65 471.85 -26.40 1145.25 -1.90 326.95 1.50 932.50 -15.75 2839.7 -7.10 550.70 -5.85 621.90

281.90 616.80 537.20 755.00 188.72 1440 310.35 264.15 793.10 145.51 552.55 1995 332.10 474.70

0.98 0.72 1.42 1.25 2.58 1.66 1.30 2.74 1.02 0.93 0.29 1.29 0.38 1.43

34.53 26.51 44.43 21.22 17.55 18.72 36.39 11.48 11.69 14.89 91.53 23.22 8.54 16.35

8050 13575 3010

6050 9250 2025

2.54 14.33 23276.83 0.39 20.73 26239.83 2.37 19.50 23141.66

-0.50

230.70

135.60

2.09 18.25 54090.98

0.01 -0.09 0.08 0.01 -0.08 0.11 0.06

4.49 20.46 17.70 2.66 44.62 18.29 6.89

2.98 14.27 14.40 1.64 34.74 12.01 5.01

2.72 6.21 2.10 1.58 1.17 1.90 -

12.72 10.05 17.19 -9.59 36.64 11.96 -2.62

43896.85 64710.52 32637.68 49053.63 26220.82 18024.02 40561.46

-25.00 -33.50 14.50 220.00 -41.00 10.00 -265.00 -495.00 29.00 10.60 -42.00 -75.50 -75.00 610.00 4.00 -23.50

1842 4458.5 3931 17960 5995 9065 21440 45350 4617 939.90 4330 4193 7834 58000 2356 3160

1062 3328 2889 10655 4223 7105 16105 30950 2380 660.00 3239 2992 5000 36095 1767 2151.5

4.20 1.41 3.23 0.60 1.56 1.16 1.01 0.93 1.15 1.02 2.03 2.37 1.65 0.20 2.63 0.40

38.72 13.42 16.15 12.03 16.45 16.22 23.74 52.73 14.49 40.96 9.84 14.93 15.50 31.06 8.59 45.24

31949.36 28526.32 42515.59 29253.62 41816.16 28744.41 39807.76 37223.03 28212.8 36367.32 54116.86 59449.04 57401.77 27394.72 30098.98 29646.2

52 Week High Low

Price Day Chg

MitsubishiEle 1440 -24.50 Mitsui 1565 -33.50 MitsuiFud 3225.5 -75.50 MitUFJFin 670.00 -10.40 Mizuho Fin 203.60 -1.40 Murata Mfg 12860 -145.00 NipponTT 6330 -116.00 Nissan Mt 1087.5 -3.50 NpnStlSmMtl 302.30 -7.60 NTTDCMo 1859.5 8.50 Panasonic 1453 -27.00 Seven & I 4294.5 -57.00 ShnEtsuCh 8159 54.00 Softbank 7311 -110.00 SumitomoF 4317 -75.00 Takeda Ph 4943.5 -78.50 TokioMarine 3866 7.00 Toyota 7481 -42.00 Malaysia (RM) Maybank 8.87 -0.03 Mexico (Mex$) AmerMvl 15.94 0.39 FEMSA UBD 123.66 2.43 GrupoMexico 43.85 0.18 WalMrtMex 29.01 0.13 Netherlands (€) ArcelorMit 9.13 -0.13 ASML Hld 86.99 -0.23 Heineken 60.48 -0.44 ING 11.21 -0.11 Philips 23.88 0.23 Unilever 32.64 0.04 Norway (Kr) DNB 113.60 -0.30 Statoil 123.60 1.10 Telenor 150.10 0.90 Qatar (QR) Inds Qatar 182.00 2.00 QatarNtBk 205.00 Russia (RUB) Gzprm neft 134.01 -2.08 Lukoil 2223.4 -72.60 Magnit 11000 -350.00 Novatek 424.70 -3.30 Nrlsk Nckl 9368 -160.00 Rosneft 208.00 -5.50 SbankR 65.95 -1.82 Surgnfgz 27.22 -1.09 Saudi Arabia (SR) AlRajhi Bk 54.50 0.94 SaudiBasic 81.75 -0.31 SaudiTelec 63.75 1.19 Singapore (S$) DBS 19.80 -0.20 Jard Str US$ 33.30 -0.38 JardnMt US$ 57.99 -0.41 OCBC 10.48 0.05 SingTel 3.98 0.05 UOB 24.55 -0.13 South Africa (R) MTN Grp 209.00 -5.56 Naspers N 1374.64 -14.37 Sasol 394.46 -7.50 South Korea (KRW) HyundaiMot 178000-2000.00 HyundMobis 243500-1500.00 KoreaElePwr 46000 -850.00 Naver 704000-7000.00 Posco 288500-4000.00 SK Hynix 47200-1650.00 SmsungEl 1305000-12000.00 Spain (€) BBVA 8.22 -0.02 BcoSantdr 7.01 0.03 CaixaBnk 4.32 -0.02 GasNatur 21.14 -0.17 Iberdrola♦ 5.62 -0.03 Inditex 23.30 0.95 Repsol 17.21 -0.20 Telefonica 12.92 0.01 Sweden (SKr) AtlasCpcoB 194.90 -1.00 Ericsson 92.70 -0.40 H&M 320.80 6.40 Investor 278.10 0.80 Nordea Bk 93.15 -0.60 SEB 98.95 -0.65 SvnskaHn 370.60 0.40 Swedbank 196.40 2.20

22016.8 35933.79 27620.96 27501.03 32301.11 35221.97 50605.39 47965.93 47018.61 37616.09 27739.57 78316.11 20588.19 21616.38

-50.00 -25.00 -

Week change change % 221.04 9789.3 3.25 13.6 1.90 9.2 5.11 7.5 0.87 7.0 11.06 6.7 0.14 6.1 0.29 4.5 0.72 4.5 3.15 4.5 5.88 4.2 1.91 4.1 2.12 3.9 0.22 3.8 0.47 3.7 13.45 3.5 0.58 3.5 12.10 3.4 2.89 3.3 2.49 3.3

Month change % -1.11 37.68 23.26 7.41 22.46 14.39 11.61 15.12 15.52 23.45 6.33 10.24 4.79 6.68 23.70 6.70 11.15 5.76 4.27 4.18

INTEREST RATES: OFFICIAL Current 0.00-0.12 3.25 0.75 0.05 0.50 0.00-0.03 0.00-0.25

1550 1820 3830 700.30 240.00 13615 7120 1146.5 356.00 1934.5 1610 4592.5 8529 9320 5470 5140 4100 7873

1083 1307 2854.5 519.00 178.10 8192 5051 824.00 243.30 1515 1030 3611 5267 6655 3800 4337.5 2834 5205

10.20

8.83

17.64 135.75 49.59 35.75

12.39 108.90 36.77 27.71

Yld

P/E MCap m

0.40 3.46 0.57 2.26 2.89 0.85 2.39 2.43 1.39 2.72 0.81 1.44 1.03 0.46 2.44 3.06 1.68 1.97

24.91 25889.39 7.46 23541.36 33.13 26775.85 8.65 79485.6 11.75 41611.1 24.50 24255.96 12.20 60246.95 9.91 41164.5 10.93 24054.44 17.25 67962.13 61.41 29844.14 19.82 31874.95 28.06 29519.87 12.19 73499.35 7.57 51113.44 41.43 32689.83 11.94 24909.83 11.53 214100.63

9.17 11.85 23690.67 1.44 0.86 2.43 0.95 1.71 0.59 1.27 3.14

16.24 26.04 12.12 18.09

75271.44 30118.86 23236.43 34610.67

13.40 89.15 64.00 11.95 28.31 34.05

9.01 57.51 44.14 8.93 20.69 26.97

-15.40 18823.55 28.36 47117.45 25.31 43136.54 12.31 53531.29 32.53 27642.11 17.89 122255.38

126.90 195.80 158.20

98.10 120.80 123.90

1.96 7.82 25426.9 6.26 7.88 54159.23 5.12 31.20 31138.84

202.90 237.00

164.00 160.00

5.85 17.82 30238.37 3.31 14.28 39392.69

154.21 2593.8 12498 501.30 10035 259.00 102.92 31.68

114.00 1.49 56953.26 1715 5.53 33950.31 6565.3 1.70 16.82 18673.5 303.60 1.44 8.06 23149.8 4981 10.13 36.28 26613.23 204.30 8.44 2.75 39574.34 62.61 2.64 25557.87 24.13 2.73 1.74 17457.86

79.50 136.50 76.50

53.25 76.75 52.25

1.78 13.32 23595.59 6.52 10.02 65341.62 3.04 10.88 33969.66

20.03 38.10 64.60 10.53 4.08 24.70

15.65 30.06 49.34 9.05 3.42 19.40

2.93 0.70 2.22 3.29 4.22 2.85

263.44 1603.97 652.99

190.01 983.25 390.00

254000 323500 50200 880000 363500 52400 1495000

149000 226000 31300 643000 268500 34800 1078000

0.87 0.70 0.17 0.08 2.51 0.89

4.41 35617.86 10.21 21132.53 10.03 26034.51 49.45 19055.25 20.72 22849.49 10.19 30704.94 8.02 155252.18

9.99 7.96 5.00 24.45 5.97 24.20 21.07 13.43

8.14 6.02 3.45 17.63 4.39 19.29 15.82 10.76

0.76 7.17 0.90 3.31 2.74 1.29 4.39 4.53

-56.74 62776.34 15.50 109250.21 46.73 30235.21 13.69 26188.5 16.88 43559.77 30.58 89900.08 17.99 27321.45 13.69 72808.29

204.30 95.15 322.70 284.30 101.00 100.60 372.80 199.80

154.80 75.05 261.00 203.50 80.25 77.10 287.20 164.50

2.86 3.28 3.03 2.04 4.27 4.10 3.15 5.22

19.89 21.68 26.77 4.03 12.60 12.10 15.58 12.96

7.50 12.84 14.61 9.83 17.47 11.74

37313.48 37299.41 40057.68 31744.38 48236.81 29885.53

4.23 14.25 33162.48 0.26 48.48 49266.11 4.61 8.24 22038.28

10067.2 36954.3 62026.25 16767.29 49845.52 28422.87 30008.61 24758.01

Last 0.12 3.25 0.75 0.15 0.50 0.03 0.00-0.75

Mnth Ago 0.00-0.25 3.25 0.75 0.05 0.50 0.00-0.10 0.00-0.25

Year Ago 0.00-0.25 3.25 0.75 0.5 0.50 0.00-0.10 0.00-0.25

Day 0.002 0.002 0.001

Change Week 0.005 -0.044 -0.001

Month 0.002 0.000 -0.002 -0.001 0.000 -0.002 0.000 0.000 0.000

One month 0.16080 0.01214 0.49819 -0.01100 0.07429 0.02200 0.50500 0.15000 -0.06500

Three month 0.23990 0.05857 0.55700 0.00400 0.11000 0.08300 0.57500 0.20000 0.02500

Six month 0.33770 0.14786 0.68113 0.05040 0.14514 0.17900 0.72500 0.26000 0.12500

One year 0.60260 0.29857 0.97775 0.15040 0.26757 0.32800

COMMODITIES Energy Price* Crude Oil† Dec 59.37 Brent Crude Oil‡ 63.61 RBOB Gasoline† Dec 1.62 Heating Oil† Dec 2.06 Natural Gas† Dec 3.65 Ethanol♦ Jan 1.71 Uranium Dec 37.75 Carbon Emissions Diesel Dec Unleaded Jan Base Metals (♠ LME 3 Months) Aluminium 1946.50 Alluminum Alloy 2040.00 Copper 6464.00 Lead 1985.75 Nickel 16234.00 Tin 20450.00 Zinc 2188.00 Precious Metals (PM London Fix) Gold 1216.25 Silver (US cents) 1698.00 Platinum 1230.00 Palladium 817.00 Bulk Commodities Iron Ore (Platts) 69.50 Iron Ore (The Steel Index) 68.80 GlobalCOAL RB Index 67.00 Baltic Dry Index 887.00

Day Week change change % change change % -7.50 -1.87 -42955.54 -99.1 -14.37 -1.03 -146125.36 -99.1 -5.56 -2.59 -21609.00 -99.0 0.00 0.00 -75.00 -20.2 -0.29 -0.86 -5.62 -14.5 -1.86 -4.30 -6.85 -14.2 -0.60 -1.34 -7.00 -13.7 -1.18 -1.39 -12.79 -13.2 -0.98 -4.09 -3.45 -13.1 -0.18 -0.68 -3.59 -12.0 -0.39 -0.85 -6.19 -12.0 -1.09 -3.85 -3.58 -11.6 0.00 0.00 -1.32 -11.5 -0.72 -1.05 -8.43 -11.0 -0.29 -0.43 -8.15 -10.9 0.00 0.00 -3.89 -10.7 -72.60 -3.16 -266.70 -10.7 -0.31 -0.38 -9.75 -10.7 0.00 0.00 -3.90 -10.3 -0.95 -0.72 -14.93 -10.3

Month change % -27.35 -1.83 -9.13 -28.07 -38.19 -15.07 -18.60 -11.36 -19.20 -20.77 -19.15 -4.96 -26.83 -19.03 -9.26 -17.13 3.90 -13.26 -16.71 -23.97

www.ft.com/commodities

Change -1.80 -0.90 -0.03 0.00 -0.05 0.02 0.00 -15.25 30.00 47.00 -26.25 -116.00 128.00 4.00 -12.75 -8.00 -14.00 8.00 0.00 -0.10 0.75 -24.00

Agricultural & Cattle Futures Corn♦ Wheat♦ Soybeans♦ Soybeans meal♦ Cocoa (ICE Liffe)X Cocoa (ICE US)♥ Coffee(Robusta)X Coffee (Arabica)♥ White SugarX Sugar 11♥ Cotton♥ Orange Juice♥ Palm Oil♣ Live Cattle♣ Feeder Cattle♣ Lean Hogs♣

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

Mar Jan Jan Dec Jan Feb

Price* 397.75 596.00 1041.75 371.60 1882.00 2849.00 1938.00 176.75 428.20 15.15 60.65 149.85 629.25 162.48 228.60 84.28

Change 4.00 14.25 9.50 2.60 -56.00 -77.00 -37.00 -1.75 -0.32 1.05 1.80 4.25 0.08 -2.98 -0.15

Dec 10 454.22 110.68 246.02 2925.79 337.80 17.15 6.65 0.03 1326.00

% Chg Month -5.43 -1.32 -8.36 -10.95 -7.89 -6.34 -66.67 -5.82

% Chg Year -12.56 -23.84 -16.14 15.85 -75.00 -21.77

Mar Mar Jan Jan Mar Mar Jan Mar

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

Price Day Chg

52 Week High Low

TeliaSonera 52.10 0.25 53.85 43.98 Volvo 83.60 -0.85 105.70 71.00 Switzerland (SFr) ABB 20.60 -0.05 24.80 18.56 CredSuisse 25.46 0.01 30.21 23.12 Holcim 69.10 -0.20 86.05 59.50 Nestle 71.70 0.20 73.30 62.95 Novartis 92.10 0.35 94.25 67.45 Richemont 88.85 -0.20 94.75 72.65 Roche 292.90 3.60 295.80 231.20 SwatchGpI 453.10 -5.20 597.00 417.10 Swiss Re 83.70 0.75 86.55 69.25 Swisscom 578.50 8.50 587.50 447.60 Syngent 308.30 0.30 364.40 273.20 UBS 17.15 0.30 19.10 13.95 Zurich Fin 305.70 3.20 307.80 240.00 Taiwan (NT$) ChnghwTl 91.80 -0.30 99.00 86.20 HonHaiPrc 89.90 0.30 113.00 73.50 MediaTek 434.00 4.00 545.00 384.00 TaiwanPet 66.90 -0.60 85.30 66.70 TaiwanSem 134.50 -1.50 142.00 94.90 Thailand (THB) PTT Explor 333.00 -12.00 398.00 259.00 United Arab Emirates (Dhs) EmiratesTele 11.25 -0.05 12.60 11.10 United Kingdom (p) AngloAmer 1173 -34.50 1678.5 1161 AscBrFd♦ 3151 -50.00 3293 2237 AstraZen 4688 5.00 5750 3367.07 Aviva 487.10 -6.40 571.50 413.70 BAE Sys 454.90 -6.10 486.60 374.10 Barclays♦ 237.25 -0.45 298.13 201.75 BG 843.70 -28.70 1420 843.70 BP♦ 398.80 -0.80 526.80 398.05 BrAmTob 3510.5 -72.50 3806.5 2871 BSkyB 850.50 -12.00 954.00 782.50 BT 411.10 1.00 451.00 350.30 Centrica 274.40 -3.50 349.80 274.33 Compass 1062 -13.00 1115.63 924.41 Diageo 1877.5 -25.50 2043.5 950.00 GlaxoSmh♦ 1393 7.00 1709 1200.67 Glencore 294.85 -11.45 379.45 293.99 HSBC 615.30 -5.60 737.00 585.00 ImpTob 2789 -17.00 2973 2156 LlydsBkg 78.20 -0.40 86.87 70.02 Natl Grid♦ 900.50 -6.50 965.00 742.50 Prudential 1501.5 -1.50 1573.5 1192 RBS 382.90 -2.90 403.90 291.60 ReckittB 5150 5.00 5540 3235.75 Reed Els 1079 -10.00 1123 851.53 RioTinto 2748 -49.50 3680.56 2721.27 RollsRoyce♦ 831.50 -24.50 1294 777.00 RylDShlA♦ 2045 10.00 2864 1992.64 SABMill 3346.5 6.00 3857 2650.21 Shire 4565 136.00 5470 2687 SSE 1620 -16.00 1858 1296.72 StandCh 926.60 -7.40 1434 898.20 Tesco♦ 171.30 -4.40 341.58 155.40 Vodafone♦ 222.95 0.30 442.06 179.10 WPP 1320 -6.00 1565 1091 United States of America ($) 3M♦ 159.15 0.91 162.92 123.61 AbbottLb 44.46 0.09 46.10 35.65 Abbvie 67.03 -0.55 70.76 45.50 Accenture 83.88 0.15 87.08 73.79 Ace 115.09 0.22 117.89 92.00 Actavis 263.00 4.19 272.75 156.40 Adobe 69.74 -0.11 74.69 53.93 AEP 58.86 0.63 59.84 45.24 Aetna 88.12 0.45 91.25 64.68 Aflac 59.57 0.13 67.62 54.99 AirProd 143.27 1.26 147.53 102.73 Alexion 191.62 0.18 203.30 120.87 Allergan 211.14 1.04 214.66 95.47 Allstate♦ 69.06 0.51 69.66 49.18 Altria 50.21 0.22 51.55 33.80 Amazon 307.36 1.52 408.06 284.00 AmerAir 50.53 1.59 51.75 24.63 AmerExpr 93.13 0.38 96.24 78.41 AmerIntGrp♦ 55.18 0.34 56.56 46.80 Ameriprise 133.89 0.26 137.15 100.94 AmerTower 99.95 -0.22 105.20 75.65 Amgen 166.08 0.69 173.14 108.20 Anadarko♦ 75.25 -0.38 113.51 73.60 Aon Cp 96.29 -0.03 98.10 76.49 Apache 57.04 -0.74 104.57 56.66 AppldMat 23.79 0.01 25.25 16.40 Apple 111.62 -0.33 119.75 70.51 ArcherDan 50.90 -0.37 53.91 37.92

Yld

P/E MCap m

4.09 16.17 29862.26 3.64 30.20 16054.92 2.70 1.89 1.96 2.81 0.10 2.67 1.08 4.89 2.43 2.13 1.42 5.89

20.62 48319.98 69.91 42010.37 18.87 23188.64 23.97 235730.9 23.84 229644.79 23.66 47806.73 23.39 212112.17 13.49 14403.55 7.57 29522.9 17.33 30889.47 19.64 29594.18 19.12 68469.12 11.77 47136.96

4.90 1.78 2.75 2.97 1.77

17.29 22822.25 11.52 42621.14 14.66 21857.08 22.28 20423.56 15.64 111767.18

2.13

9.82 28963.08

6.02 11.20 24215.32 4.22 257.35 25714.8 1.03 32.67 39155 3.72 93.14 92927.99 3.08 12.43 22537.47 4.42 78.59 22520.72 2.74 53.53 61371.8 2.20 16.07 45208.49 5.98 13.04 114167.57 4.06 18.33 93749.17 3.64 10.60 23005.52 2.41 16.77 52545.77 6.20 21.15 21399.26 2.40 40.54 27824.08 2.61 20.28 74077.01 5.74 16.26 106335.32 3.27 17.88 60902.33 4.87 11.95 185342.97 4.17 38.98 41898.08 - 237.69 87607.3 4.67 15.77 53170.08 2.24 18.02 60499.73 -6.73 38241 2.66 19.89 58085.24 2.28 23.32 35013.3 4.13 14.12 60983.65 2.65 6.88 24661.03 5.74 13.01 125505.65 1.93 24.14 84745.19 0.28 23.83 42274.9 5.35 78.41 25109.08 5.31 9.11 35937.25 8.62 16.23 21840.69 6.25 61.42 92766.32 2.59 17.55 27311.9 1.95 22.55 101986.32 1.74 35.89 66947.45 2.37 30.01 106796.58 2.10 20.89 66153.11 2.15 12.31 38179.67 - -51.11 69711.07 - 153.25 34782.05 3.29 16.60 28796.69 0.96 15.18 30991.8 2.41 9.64 26841.44 2.04 32.24 30662.94 82.44 37995.73 0.09 50.82 62898.32 1.53 11.53 28966.06 3.78 23.79 99238.56 - -680.31 142309.66 0.19 94.96 36243.33 1.02 17.77 96359.42 0.83 9.43 77247.16 1.59 18.32 24707 1.27 56.31 39626.47 1.34 26.99 126332.07 1.16 -18.44 38110.39 0.85 23.39 27455.81 1.53-255.13 21474.54 1.56 31.46 28985.6 1.57 17.87 654633.44 1.73 18.04 32857.01

Stock

52 Week High Low

Price Day Chg

AT&T AutomData♦ BakerHu BankAm♦ Baxter♦ BB & T BerkshHat Biogen BkNYMeln BlackRock♦ Boeing BrisMySq CapOne CardinalHlth Carnival♦ Caterpillar CBS♦ Celgene Centurylink CharlesSch ChevrnTx Cigna Cisco Citigroup CME Grp♦ CntnentlRes Coca-Cola♦ Cognizant ColgtPlm Comcast ConocPhil Corning♦ Costco Covidien CrownCstl CSX♦ Cummins CVS Danaher Deere Delta DevonEngy DirectTV DiscFinServ Disney♦ DominRes♦ DowChem DukeEner♦ DuPont♦ Eaton eBay Ecolab EMC Emerson EOG Res Exelon ExpScripts ExxonMb Facebook Fedex♦ FordMtr Franklin FreeportMc GenDyn GenElectric GenMills GenMotors♦ GileadSci GoldmSchs♦ Google Halliburton♦ HCA Hold Hess Hew-Pack♦ HiltonWwde HomeDep♦ Honywell IBM IllinoisTool Intel Intuit John&John JohnsonCn♦ JPMrgnCh Kimb-Clark♦ KinderM Kraft Kroger LasVegasSd LibertyGbl Lilly (E) Lockheed♦

32.71 84.60 55.77 17.47 73.11 38.18 224800 342.33 40.54 353.83 123.37 59.68 82.38 80.47 43.53 92.69 52.49 116.74 38.80 29.68 104.91 102.43 26.99 54.51 88.48 33.24 41.53 51.51 69.28 55.90 63.61 21.19 141.41 101.85 76.82 35.38 144.20 90.93 83.95 87.99 48.33 53.84 83.90 63.22 91.75 73.37 46.01 82.89 71.63 66.83 56.79 104.64 29.23 61.32 86.86 36.27 83.98 89.20 77.73 176.88 15.28 56.39 22.98 142.40 25.41 52.48 32.19 104.31 193.54 532.11 38.23 73.56 67.86 38.47 26.26 100.27 97.89 161.07 94.99 36.70 93.37 106.72 47.30 61.14 114.04 39.88 60.06 61.89 55.86 48.75 71.61 189.25

0.22 37.48 31.74 0.47 86.54 70.50 0.43 75.64 47.51 0.09 18.03 14.37 0.35 77.31 65.53 0.08 41.04 34.36 1150 229374163038.88 -1.26 358.89 270.27 -0.24 41.62 30.82 -3.19 368.64 284.78 -1.27 144.57 116.32 0.40 61.20 46.30 -0.01 85.39 67.86 -0.01 83.36 63.06 0.23 44.74 33.11 -0.33 111.46 84.84 0.90 68.10 48.83 1.10 119.84 66.85 0.40 45.67 27.93 0.16 31.00 23.35 0.05 135.10 103.07 0.03 105.60 73.47 0.12 27.99 20.22 0.04 56.95 45.18 -0.55 89.99 66.44 -0.29 80.91 33.00 -0.07 44.87 36.89 0.19 54.73 41.51 0.41 70.11 59.75 0.33 57.49 47.74 0.07 87.09 62.74 0.04 22.37 16.55 1.16 146.82 109.50 0.35 103.90 65.49 -0.64 84.97 68.44 0.39 37.99 25.84 0.23 161.03 122.64 0.82 91.75 64.95 0.81 85.24 70.12 0.47 94.89 78.88 2.11 48.55 26.40 -0.63 80.63 53.34 0.52 89.46 64.79 0.08 66.75 51.63 1.27 94.50 68.80 1.49 74.59 63.06 -0.33 54.97 40.26 0.64 83.90 67.05 0.40 73.53 59.35 0.02 79.98 57.11 1.52 59.70 46.34 0.43 118.46 97.65 -0.06 30.66 23.15 -0.13 70.66 57.76 0.07 118.89 78.01 0.33 37.90 26.45 0.28 85.72 64.64 0.53 104.76 86.91 1.55 81.16 49.01 0.42 183.51 128.17 0.12 18.12 13.26 -0.10 59.43 49.12 -0.98 39.32 22.86 1.26 145.92 89.18 0.14 28.09 23.69 0.49 55.64 46.70 0.22 41.85 28.82 -0.53 116.83 63.50 1.54 198.06 151.65 4.07 614.44 511.00 0.11 74.33 37.84 0.96 74.80 45.07 -0.72 104.50 67.56 1.11 39.65 26.29 0.27 26.53 20.55 1.33 101.40 73.96 0.39 100.16 82.89 0.56 199.21 159.80 0.38 97.79 76.25 0.28 37.90 23.50 0.81 95.42 69.02 0.48 109.49 86.09 0.50 52.50 38.60 0.46 63.16 52.97 0.87 116.72 98.27 0.44 42.49 30.81 0.48 61.10 50.54 0.53 62.39 35.13 1.34 88.28 53.98 0.07 90.93 37.98 0.56 75.10 48.88 1.34 192.94 137.22

Bid yield

Mth's Spread chge vs yield US

Dec 11 High Yield US$ MGM Resorts Intl

S*

Ratings M*

F*

Bid price

01/17

7.63

B+

B3

BB

107.55

3.85

0.16

0.92

3.24

High Yield Euro Kazkommerts Intl BV

02/17

6.88

B

Caa1

B

87.00

-

0.00

0.00

-

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

03/15 05/16 01/17 01/18 03/19 07/19 11/19 02/20 03/23

6.63 8.38 6.00 8.00 7.13 6.38 7.50 11.75 3.25

BBB+ BBB+ BBBBBBBBB+ ABBB -

A3 A3 Baa2 Baa2 A3 A2 Baa3 Baa2 Baa3

BBB+ BBB+ BBB BBB BBB+ ABBBBBB BBB-

101.12 121.00 107.93 109.40 118.94 118.02 125.38 140.13 83.13

1.34 1.23 2.06 4.65 2.46 2.23 3.47 3.27 5.85

-0.02 0.00 0.07 0.13 0.08 -0.05 0.00 0.04 0.03

-0.09 0.00 0.19 0.09 0.27 0.03 0.00 0.30 0.21

0.73 0.62 1.45 3.02 0.84 0.61 1.85 1.64 3.64

Red date Coupon

Index

Month's change

Year change

Return 1 month

Return 1 year

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

180.73 289.69 250.59 211.82 219.08 280.34 254.03 289.84 223.62 280.56 216.59 214.01

0.19 0.30 0.19 0.03 0.32 0.44 0.47 0.30 0.14 0.40 0.22 0.12

-0.05 2.27 0.37 0.52 1.26 3.22 1.17 2.27 0.56 2.92 0.97 0.69

5.67 10.79 6.98 7.78 11.72 12.54 5.32 10.80 5.90 11.99 10.12 5.59

-0.32 2.01 0.37 0.72 1.72 2.77 0.58 1.99 0.56 2.52 1.32 0.69

4.90 9.87 6.98 7.40 11.09 11.14 4.64 9.78 5.90 10.71 9.53 5.59

Emerging Euro Brazil 02/15 7.38 BBBBaa2 BBB 111.75 0.73 0.00 0.00 0.12 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.88 Mexico 02/20 5.50 BBB+ BBB+ 111.09 3.14 -0.01 0.07 1.52 Bulgaria 09/25 5.75 BBBBBB- 123.13 3.20 0.00 -0.23 0.99 Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

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

113.48 109.63 952.94 113.78

0.14 0.02 -2.88 0.09

-

-

1.92 0.22 4.17 1.20

5.74 5.57 -3.14 8.78

Index

Day's change

Week's change

Month's change

Series high

Series low

336.86 60.13 70.58 62.36

-2.08 -0.05 6.17 -0.11

16.24 2.05 8.93 3.18

-2.40 -2.50 11.56 -1.61

419.37 80.45 79.33 85.99

307.60 55.18 58.50 56.40

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

Markit CDX Emerging Markets 5Y 350.75 21.28 59.37 72.39 350.75 238.47 Nth Amer High Yld 5Y 371.70 16.05 39.28 32.53 398.34 328.06 Nth Amer Inv Grade 5Y 68.13 3.27 6.65 3.79 73.81 60.32 Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 181.74 100.00 Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.

BONDS: INDEX-LINKED Price Month Value No of Yield Oct 12 Oct 12 Prev return stock Market stocks Can 4.25%' 21 129.04 0.073 0.044 -0.86 5.18 67072.77 7 Fr 2.25%' 20 115.02 -0.388 -0.449 -0.64 19.98 205582.98 14 Swe 0.25%' 22 105.03 -0.299 -0.305 -0.82 28.26 243931.09 6 UK 2.5%' 16 330.72 -1.405 -1.434 -0.22 7.90 476871.60 24 UK 2.5%' 24 347.52 -0.863 -0.893 -0.01 6.82 476871.60 24 UK 2%' 35 232.85 -0.733 -0.748 1.03 9.08 476871.60 24 US 0.625%' 21 102.30 0.272 0.285 -0.75 35.84 1069759.99 35 US 3.625%' 28 138.53 0.613 0.285 -0.08 16.78 1069759.99 35 Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par amount.

BONDS: TEN YEAR GOVT SPREADS Bid Yield

Spread Spread vs vs Bund T-Bonds

Australia 2.94 2.26 0.73 Italy Austria 0.85 0.17 -1.35 Japan Belgium 1.14 0.46 -1.07 Netherlands Canada 1.98 1.30 -0.23 Norway Denmark 0.96 0.28 -1.24 Portugal Finland 0.91 0.23 -1.30 Spain France 0.95 0.27 -1.26 Switzerland Germany 0.68 0.00 -1.53 United Kingdom Greece 9.21 8.52 7.00 United States Ireland 1.31 0.63 -0.90 Data provided by SIX Financial Information & Tullett Prebon Information

Bid Yield 2.06 0.38 0.82 1.65 2.97 1.87 0.36 1.91 2.21

Spread Spread vs vs Bund T-Bonds 1.38 -0.30 0.14 0.97 2.29 1.19 -0.32 1.23 1.53

-0.15 -1.83 -1.39 -0.56 0.76 -0.34 -1.84 -0.30 0.00

BONDS: BENCHMARK GOVERNMENT Red Bid Date Coupon Price 07/17 4.25 105.07 04/25 3.25 102.74 Austria 06/16 1.75 101.78 10/24 1.65 107.50 Belgium 12/17 1.00 102.11 12/24 1.10 99.63 Canada 11/16 1.00 100.01 06/25 2.25 102.55 Denmark 11/16 2.50 104.80 11/25 1.75 108.10 Finland 04/17 1.88 104.29 07/25 4.00 130.92 France 11/16 0.25 100.48 11/19 0.50 101.12 11/24 1.75 107.53 05/45 3.25 128.83 Germany 06/16 0.25 100.41 10/19 0.25 100.75 08/24 1.00 102.98 07/44 2.50 124.26 Greece 07/17 3.38 84.85 02/25 2.00 62.67 Ireland 10/17 5.50 114.90 03/24 3.40 118.08 Italy 12/16 1.50 101.78 12/19 1.05 99.64 12/24 2.50 104.06 09/44 4.75 125.56 Japan 12/16 0.10 100.19 12/19 0.08 99.94 09/24 0.50 101.11 09/44 1.70 107.45 Netherlands 04/17 0.50 101.15 07/24 2.00 110.87 New Zealand 12/17 6.00 106.73 04/23 5.50 111.98 Norway 05/17 4.25 107.72 03/24 3.00 111.48 Portugal 02/16 6.40 106.83 02/24 5.65 121.22 Spain 10/17 0.50 99.34 10/24 2.75 107.89 Sweden 08/17 3.75 109.94 05/25 2.50 114.83 Switzerland 10/16 2.00 103.90 07/25 1.50 111.81 United Kingdom 01/17 1.75 102.30 07/20 2.00 102.78 09/24 2.75 107.43 01/45 3.50 117.71 United States 11/16 0.50 99.78 11/19 1.50 99.41 11/24 2.25 100.38 11/44 3.00 102.60 Data provided by SIX Financial Information & Tullett Prebon Information

P/E MCap m

Stock

5.45 10.34 169666.77 2.20 27.45 40782.77 1.08 19.48 24126.05 0.44 45.98 183712.12 2.68 22.58 39624.02 2.38 14.42 27500.99 18.43 192530.63 33.48 80843.08 1.53 17.04 45636.27 2.04 18.90 58457.67 2.10 18.25 87954.23 2.34 37.86 98995.78 1.41 11.45 46241.44 1.55 26.25 26632.48 2.17 25.51 25798.03 2.61 15.48 56114.42 0.94 20.99 25217.47 63.45 93240.73 5.39 27.96 22143.37 0.78 32.72 38755.22 3.82 9.98 198324.42 0.04 14.39 26793.5 2.69 18.66 138015.74 0.07 18.91 165137.4 2.04 30.27 29710.79 12.77 12372.39 2.79 23.81 181906.09 23.24 31365.35 1.96 31.39 63141.68 1.51 18.18 120150.58 4.26 11.26 78298.37 1.83 17.10 27162.36 0.89 32.17 62290.98 1.56 28.82 46116.05 1.32 150.02 25646.96 1.70 19.76 35217.16 1.78 16.74 26344.16 1.12 24.29 104240.65 0.37 22.75 58990.96 2.25 10.64 31537.42 0.54 4.31 40449.38 1.65 10.24 22025.94 15.98 42137.66 1.35 12.42 28668.99 0.91 22.22 155581.47 3.12 29.50 42750.34 3.01 15.85 54225.58 3.66 19.41 58627.32 2.46 21.95 64892.98 2.74 19.52 31717.52 - -584.83 70547.83 1.02 28.69 31404.19 1.42 24.21 59480.38 2.72 20.77 42533.69 0.49 16.12 47600.1 3.31 15.39 31172.79 34.66 61633.76 2.87 11.59 377719.95 75.96 172866.57 0.27 25.57 50100.62 3.01 10.40 58807.94 0.82 15.36 35095.53 5.27 11.02 23878.94 1.60 19.88 47189.9 3.35 17.68 255172.1 2.85 20.71 31684.68 2.71 21.50 51719.55 19.18 157368.78 1.10 11.56 84295.48 29.20 151553.54 1.52 10.18 32398.41 19.47 31892.95 1.43 8.66 20288.01 1.44 15.59 71795.61 48.72 25856.05 1.76 23.33 132138.55 1.78 19.02 76629.3 2.46 10.68 159404.61 1.78 22.31 37134.79 2.37 18.11 177444.5 0.86 33.15 26656.8 2.47 18.27 298721.06 1.80 23.04 31577.11 2.47 11.70 228552.86 2.83 20.86 42474.79 4.05 34.21 41005.79 3.39 15.68 35364.76 0.97 21.64 30393.61 3.21 17.40 44799.62 - -36.77 10489.88 2.65 29.60 79732.71 2.72 19.79 59788.84

52 Week High Low

Price Day Chg

Lowes 65.76 Lyondell 75.30 Marathon Ptl 83.88 MarathonOil 26.25 Marsh&M 57.35 MasterCard 87.69 McDonald's♦ 90.97 McGraw Hill 90.73 McKesson♦ 209.59 Medtronic 73.77 Merck♦ 59.34 Metlife♦ 55.21 MicronTech 35.19 Microsoft 47.17 MondelezInt 38.13 Monsanto 120.07 MorganStly 37.40 Netflix 334.63 News Corp A 37.12 NextEraE♦ 102.48 Nike♦ 96.93 NobleEngy 45.39 NorfolkS 102.63 Northrop♦ 145.72 NtlOilVarc♦ 63.01 OccidPet♦ 75.08 Oracle 40.76 Pepsico♦ 96.29 Pfizer 31.65 Phillips66 66.82 PhilMorris 85.97 PionrNat 130.60 PNCFin 88.95 PPG Inds♦ 222.60 Praxair♦ 126.26 Prec Cast♦ 232.88 Priceline 1114.27 ProctGmbl 90.41 Prudntl♦ 89.79 PublStor♦ 184.47 Qualcomm♦ 71.99 Raytheon 106.39 Regen Pharm 424.35 ReynoldsAm♦ 65.39 Salesforce 55.48 Schlmbrg♦ 83.01 SempraEgy 109.43 SimonProp 182.86 SouthCpr 28.52 Southern 48.40 Southwest Air♦ 41.92 SpectraEn 34.75 Sprint 4.40 Starbucks 83.12 StateSt 78.20 Stryker 93.41 Target 73.53 TeslaMotors 208.88 TexasInstr 54.49 TheTrvelers♦ 104.57 ThrmoFshr♦ 126.72 TimeWrnr♦ 83.31 TimeWrnrC♦ 147.15 TJX Cos 65.60 T-Mobile US 25.64 Twitter 36.70 UnionPac♦ 114.35 UPS B 110.63 USBancorp 44.70 UtdHlthcre♦ 99.73 UtdTech 114.04 ValeroEngy♦ 46.81 Verizon 46.36 Vertex Pharm 120.78 VF Cp♦ 73.33 Viacom♦ 72.97 Visa Inc 263.12 Walgreen♦ 73.01 WalMartSto♦ 83.83 Wellpoint♦ 128.71 WellsFargo 54.43 Williams Cos♦ 44.13 Yahoo 49.94 Yum!Brnds 72.02

Yld

0.63 67.27 44.13 0.68 115.40 74.04 -1.18 97.94 74.64 -0.18 41.92 26.15 -0.18 58.74 44.25 1.36 89.87 68.68 0.97 103.78 89.34 -0.82 93.94 71.16 1.47 214.37 156.00 0.54 75.31 53.33 -0.19 62.20 47.61 0.25 57.57 46.15 0.33 36.59 20.64 0.27 50.05 34.63 0.02 39.54 31.83 0.72 128.79 104.08 0.01 38.14 28.31 0.31 489.29 299.50 0.13 38.08 30.67 1.04 105.94 81.52 -0.45 99.50 69.85 -0.39 79.63 45.14 1.35 117.64 87.14 1.40 148.77 107.21 -0.07 86.55 62.56 -0.06 101.38 74.36 -0.16 43.19 33.22 0.11 100.57 77.01 -0.21 33.12 27.51 -0.29 87.98 66.12 0.37 91.63 75.28 -0.95 234.60 130.06 0.18 90.98 73.92 1.75 225.79 171.56 0.66 135.24 117.32 -2.02 275.09 215.09 -1.25 1378.96 1017.28 0.41 91.28 75.26 3.41 94.30 75.89 0.21 188.36 147.14 0.49 81.97 67.67 0.26 110.00 85.30 1.42 437.64 257.69 0.39 67.59 46.55 0.16 67.00 48.18 -0.16 118.76 82.13 1.10 114.50 86.00 0.15 184.03 148.36 -0.34 33.90 24.70 0.48 48.65 40.03 0.44 42.94 17.96 -0.39 43.12 32.80 0.04 11.47 4.22 0.46 84.20 67.93 -0.18 80.14 62.67 0.77 95.37 71.22 0.62 74.58 54.66 -0.96 291.42 136.67 0.39 56.00 40.33 0.31 106.13 79.89 -0.46 129.69 100.04 0.10 88.13 60.72 1.95 155.32 128.78 1.31 66.45 51.91 0.30 35.50 24.50 0.35 74.73 29.51 0.66 123.61 80.02 0.57 111.57 93.19 0.06 45.52 38.10 0.64 101.33 69.57 0.54 120.66 97.30 0.16 59.69 42.53 0.18 53.66 45.45 3.58 122.26 59.79 0.69 74.72 55.14 -0.03 89.76 65.86 1.40 265.63 194.84 4.86 76.39 54.86 0.85 87.07 72.27 0.94 129.96 81.84 0.17 55.35 43.47 -0.60 59.77 33.98 0.74 52.62 32.15 1.49 83.58 65.81

P/E MCap m

1.22 26.45 63978.47 3.34 9.14 37700.3 2.03 10.76 23502.57 2.88 10.03 17716.05 1.74 22.24 31020.57 0.49 31.07 97591.98 3.45 18.45 89326.11 1.26 28.46 24633.2 0.44 36.05 48600.1 1.56 25.99 72613.03 2.87 33.54 169170.83 2.19 11.66 62720.88 14.65 37774.89 2.30 19.10 388815.37 1.45 36.79 64055.47 1.35 24.48 58122.68 0.78 15.37 73206.88 91.80 20108.26 0.65 21.15 51371.69 2.68 23.77 44730.71 0.94 32.08 66295.33 1.37 18.39 16424.67 2.05 16.55 31758.02 1.74 16.02 29435.34 2.21 10.63 27130.45 3.61 10.77 58219.14 1.11 18.01 180619.95 2.46 22.00 144108.19 3.12 20.20 199415.8 2.58 10.82 36985.77 4.30 17.81 133572.89 0.06 -75.54 18695.11 2.00 12.39 46806.36 1.11 22.87 30548.52 1.96 20.74 36788.7 0.05 18.75 33193.02 25.99 58338.75 2.67 26.31 244298.55 2.29 18.22 40944.24 2.94 37.98 31862.7 2.07 16.90 119690.64 2.15 16.73 32807.27 - 143.42 42304.26 3.91 22.83 34740.63 - -111.22 34009.24 1.76 16.12 106816.76 2.31 24.70 26908.15 2.67 39.42 56828.15 1.56 17.65 23334.13 4.13 21.37 43550.94 0.46 26.20 28452.96 3.65 24.06 23317.26 -8.67 17406.32 1.21 31.68 62198.7 1.39 17.27 32648.13 1.26 57.61 35338.92 2.42 31.40 46835.99 - -131.86 26189.75 2.13 24.44 57552.5 1.94 10.40 34654.11 0.46 31.55 50691.23 1.44 17.97 69854.29 1.91 21.34 41274.77 0.96 22.08 45191.86 - 168.74 20700.46 - -21.18 23286.57 1.53 21.81 101668.5 2.30 28.34 77700.36 2.06 15.16 79985.57 1.27 18.53 95719.97 2.00 17.38 103965.52 2.07 6.76 24399.48 4.47 10.35 192381.19 - -55.64 29050.22 1.39 25.90 31669.19 1.67 13.88 26239.38 0.59 31.53 129771.3 1.66 38.59 69387.75 2.24 17.96 270200.01 1.27 16.42 34744.16 2.31 13.78 282362.4 3.88 16.94 32985.53 6.85 47310.73 1.99 23.21 31663.53

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

Dec 11 US$ JPMorgan Chase & Co. Duke Energy Ohio, Inc. Citigroup Funding Inc. Ryder System, Inc. Bear Stearns Cos, LLC Cummins Inc. Euro Standard Chartered PLC Anheuser Busch InBev NV/SA BP Capital Markets Philip Morris Intl, Inc. Yen Wal-Mart Stores, Inc. £ Sterling BG Energy Capital plc IPIC GMTN Limited

Red date Coupon

Ratings M*

Bid yield

Day's chge yield

Mth's Spread chge vs yield US

F*

Bid price

05/25 06/25 09/25 12/25 03/26 02/27

5.50 6.90 4.25 6.95 6.00 6.75

ABBB+ ABBB A A+

Baa1 Baa1 Baa2 Baa1 A3 A3

A AA AA+ A

101.45 118.30 100.58 122.47 101.32 124.27

5.42 4.72 6.15 4.40 5.92 4.23

0.01 0.08 0.00 0.07 0.00 0.20

0.13 0.19 0.01 0.17 0.05 0.21

3.22 2.51 3.94 2.19 -

10/25 03/26 09/26 05/29

4.00 2.70 2.21 2.88

BBB+ A A A

A3 A2 A2 A2

A+ A A A

105.70 104.54 103.05 111.48

3.36 2.24 1.92 1.95

-0.02 0.01 -0.03 -0.03

0.00 0.22 -0.07 -0.17

1.15 -

07/15

0.94

AA

Aa2

AA

100.38

0.32

0.00

0.01

-0.30

12/25 03/26

5.13 6.88

AAA

A2 Aa2

AAA

117.02 129.34

3.25 3.65

0.01 0.00

-0.24 -0.08

1.05 -

S*

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

GILTS: UK CASH MARKET

Dec 11 Day Chng Prev 52 wk high 52 wk low VIX 20.08 1.55 18.53 31.06 10.28 VXD 18.75 1.24 17.51 22.60 7.64 VXN 20.40 0.93 19.47 31.17 9.66 VDAX 17.40 -0.10 17.50 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. ‡ Deutsche Borse. VDAX: DAX Index Options Volatility.

Australia

Yld

BONDS: GLOBAL INVESTMENT GRADE Day's chge yield

VOLATILITY INDICES Day's change

CREDIT INDICES

Short 7 Days One Three Six One Dec 11 term notice month month month year Euro -0.15 0.00 -0.14 0.01 -0.13 0.02 -0.05 0.10 0.05 0.20 0.21 0.36 Sterling 0.40 0.55 0.40 0.55 Swiss Franc Canadian Dollar US Dollar 0.08 0.18 0.08 0.18 0.10 0.20 0.15 0.25 0.23 0.33 0.48 0.58 Japanese Yen -0.01 0.04 -0.01 0.04 -0.30 0.00 -0.10 0.20 -0.05 0.25 0.00 0.30 Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. LA 7 days notice: Tradition (UK).”

Stock

BONDS: HIGH YIELD & EMERGING MARKET

Close Prev price price Sasol 394.46 401.96 Naspers N 1374.64 1389.01 MTN Grp 209.00 214.56 YPF 297.00 297.00 CntnentlRes 33.24 33.53 Airbus Grpe 41.32 43.18 Williams Cos 44.13 44.73 Marathon Ptl 83.88 85.06 FreeportMc 22.98 23.96 MarathonOil 26.25 26.43 NobleEngy 45.39 45.78 Surgnfgz 27.22 28.31 Petrobras 10.11 10.11 Hess 67.86 68.58 Phillips66 66.82 67.11 Suncor En 32.41 32.41 Lukoil 2223.40 2296.00 SaudiBasic 81.75 82.06 CanNatRs 33.84 33.84 PionrNat 130.60 131.55 Based on the FT Global 500 companies in local currency

BOND INDICES Since 16-12-2008 16-12-2008 18-02-2010 05-05-2014 05-03-2009 05-10-2010 03-08-2011

INTEREST RATES: MARKET Over Dec 11 (Libor: Dec 10) night US$ Libor 0.11200 Euro Libor -0.08643 £ Libor 0.46813 Swiss Fr Libor Yen Libor Euro Euribor Sterling CDs US$ CDs Euro CDs LA 7Day Notice 0.45%-0.40%

23.50 45870.64 24.01 30598.14 13.24 26044.02 24.68 123197.73 18.28 44505.09 8.11 34751.79 19.18 22932.2 9.88 119929.41 18.14 24925.55 9.69 33568.79 -12.73 33889.12

14.93 96.23 54.59 89.95 72.22 48.69 46.40 54.71 214.30 57.36 21.31

Stock

FT 500: BOTTOM 20 Day change change % -0.50 -0.22 -2.05 -7.02 -0.52 -2.26 4.86 7.13 -0.07 -0.53 -4.03 -2.24 0.01 0.48 -0.11 -1.62 -0.10 -0.59 0.60 0.82 1.40 0.97 2.11 4.57 1.52 2.74 -0.04 -0.65 -0.11 -0.84 1.60 0.41 0.30 1.78 0.40 0.11 3.41 3.95 1.55 2.03

Close Prev price price TevaPha 223.30 223.80 Citic Secs 27.15 29.20 SaicMotor 22.47 22.99 Walgreen 73.01 68.15 IndstrlBk 13.25 13.32 Kweichow 175.89 179.92 IntSPaolo 2.50 2.49 BkofComm 6.70 6.81 ChinaMBank 16.82 16.92 PingAnIns 73.70 73.10 Northrop 145.72 144.32 Delta 48.33 46.22 eBay 56.79 55.27 ChConstBk 6.07 6.11 ShgPdgBk 13.05 13.16 ITC 396.60 395.00 UBS 17.15 16.85 SvnskaHn 370.60 370.20 Prudntl 89.79 86.38 Facebook 77.73 76.18 Based on the FT Global 500 companies in local currency

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

P/E MCap m

0.29 -0.10 -0.83 1.12 0.53 -0.28 -0.57 0.03 0.60 -0.20 0.03

FT 500: TOP 20

Dec 11 US US US Euro UK Japan Switzeland

Yld

Bid Day chg Wk chg Month Year Yield yield yield chg yld chg yld 2.23 0.00 -0.06 -0.35 -0.92 2.94 -0.01 -0.17 -0.45 -1.51 0.56 -0.01 0.06 0.05 0.02 0.85 0.00 -0.06 -0.15 0.00 0.29 0.00 -0.02 -0.03 -0.88 1.14 -0.03 -0.09 0.00 0.00 0.99 0.02 0.03 -0.02 0.00 1.98 0.03 -0.04 -0.18 0.00 0.00 0.00 0.00 0.00 0.00 0.96 0.01 -0.06 -0.05 0.00 0.04 -0.01 -0.01 0.01 -0.56 0.91 0.00 -0.08 -0.15 -1.39 0.00 -0.01 -0.02 -0.01 0.00 0.27 0.01 0.00 -0.02 0.00 0.95 -0.01 -0.08 -0.21 0.00 1.98 -0.02 -0.13 -0.29 -1.36 -0.02 0.00 0.00 0.00 0.00 0.09 -0.01 -0.04 -0.02 0.00 0.68 0.00 -0.10 -0.12 0.00 1.48 -0.01 -0.15 -0.21 -1.20 10.33 1.03 4.04 3.26 0.00 9.21 0.43 1.40 0.56 0.41 0.23 -0.01 0.00 -0.09 -1.51 1.31 0.00 -0.08 -0.29 0.00 0.61 0.01 0.09 -0.02 0.00 1.13 0.01 0.11 0.00 0.00 2.06 0.00 0.03 -0.30 0.00 3.41 0.01 0.02 -0.30 -1.46 0.01 0.00 0.00 0.00 0.00 0.09 0.00 0.00 -0.10 0.00 0.38 0.00 -0.02 -0.12 0.00 1.35 0.02 -0.07 -0.13 0.00 0.01 -0.01 -0.02 0.00 0.00 0.82 0.00 -0.07 -0.13 0.00 3.63 -0.02 -0.06 -0.17 -1.34 3.81 0.02 -0.04 -0.31 -1.00 1.01 -0.15 -0.19 -0.28 -0.80 1.65 -0.13 -0.20 -0.35 0.00 0.51 -0.03 0.08 -0.02 -3.19 2.97 0.02 0.18 -0.23 -3.16 0.73 0.02 0.10 0.04 0.00 1.87 0.00 -0.01 -0.25 0.00 0.01 0.00 -0.03 -0.04 -1.32 0.99 -0.02 -0.09 -0.15 0.00 -0.14 0.00 0.00 0.00 0.00 0.36 0.00 -0.03 -0.12 -0.92 0.65 0.02 -0.01 -0.09 -0.34 1.48 0.00 -0.04 -0.19 0.00 1.91 0.00 -0.08 -0.27 0.00 2.64 -0.01 -0.09 -0.29 0.00 0.61 0.04 0.07 0.00 0.00 1.62 0.07 0.04 0.00 0.00 2.21 0.05 -0.04 -0.14 0.00 2.87 0.04 -0.07 -0.20 0.00

Red 52 Week Amnt Change in Yield Dec 11 Price £ Yield Day Week Month Year High Low £m Tr 3.5pc 'WL Tr 2.75pc '15 100.27 0.32 0.00 -0.05 -0.19 -2.25 102.57 100.27 0.29 Tr 2pc '16 101.68 0.48 -0.02 0.00 -0.05 -1.12 102.88 101.66 0.32 Tr 1.75pc '17 102.34 0.63 -0.02 0.07 0.18 0.06 102.56 101.07 0.29 Tr 5pc '18 112.95 0.93 0.01 0.08 0.24 -1.45 114.65 111.68 0.35 Tr 4.5pc '19 113.76 1.16 0.02 0.17 0.57 0.34 114.43 111.17 0.36 Tr 4.75pc '20 117.09 1.36 0.04 0.27 0.79 1.32 117.71 113.53 0.33 Tr 8pc '21 140.05 1.50 0.04 0.32 0.89 1.15 140.87 135.65 0.24 Tr 4pc '22 116.32 1.60 0.04 0.47 1.41 5.03 116.72 109.05 0.38 Tr 5pc '25 128.85 1.89 0.07 0.84 2.28 8.49 129.06 116.64 0.35 Tr 4.25pc '27 124.19 2.11 0.09 1.06 3.03 11.80 124.32 109.01 0.31 Tr 4.25pc '32 126.94 2.36 0.19 1.30 3.87 14.26 126.94 109.23 0.35 Tr 4.25pc '36 128.63 2.50 0.23 1.50 4.33 15.54 128.63 109.13 0.26 Tr 4.5pc '42 137.87 2.59 0.28 1.90 4.97 17.70 137.87 114.63 0.26 Tr 3.75pc '52 127.06 2.62 0.33 2.56 6.37 22.06 127.06 101.59 0.22 Tr 4pc '60 137.42 2.59 0.36 2.89 7.07 23.77 137.42 108.28 0.21 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield. This table shows the gilts benchmarks & the non-rump undated stocks. A longer list appears on Mondays & the full list on Saturdays, and can be found daily on ft.com/bond&rates.

GILTS: UK FTSE ACTUARIES INDICES Price Indices Fixed Coupon 1 Up to 5 Years 2 5 - 10 Years 3 10 - 15 Years 4 5 - 15 Years 5 Over 15 Years 6 Irredeemables 7 All stocks Index Linked 1 Up to 5 Years 2 Over 5 years 3 5-15 years 4 Over 15 years 5 All stocks Yield Indices 5 Yrs 10 Yrs 15 Yrs

Day's chg % 0.01 0.06 0.09 0.07 0.27 0.01 0.13

Dec 11 100.22 180.48 207.15 186.49 294.17 425.57 172.94 Dec 11 315.94 568.87 437.52 693.80 527.62 Dec 11 1.30 1.94 2.31

Day's chg % -0.14 0.49 -0.12 0.76 0.42 Dec 10 1.31 1.95 2.32

Yr ago 1.76 2.88 3.34

Total Return 2333.91 3158.28 3690.27 3287.17 4140.11 5024.52 3139.53

Month chg % -0.40 6.47 2.01 8.55 5.71

Return 1 month 0.58 1.96 3.37 2.37 5.92 9.80 3.14

Year's chg % -1.95 19.26 7.09 25.73 16.81

20 Yrs 45 Yrs Irred

inflation 0% Dec 11 Dur yrs Previous Yr ago Dec 11 Real yield Up to 5 yrs -1.01 2.58 -1.07 -1.41 -1.57 Over 5 yrs -0.74 22.67 -0.72 0.01 -0.77 5-15 yrs -0.80 9.23 -0.81 -0.18 -0.92 Over 15 yrs -0.73 28.47 -0.70 0.04 -0.75 All stocks -0.74 20.50 -0.72 -0.02 -0.78 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts

Total Return 2375.03 4167.80 3287.25 4996.60 3910.67 Dec 11 2.50 2.62 3.47

Return 1 year 2.18 7.82 14.43 9.67 21.99 29.90 11.40

Yield 0.98 1.62 2.03 1.78 2.55 3.47 2.27

Return 1 month -0.17 6.64 2.24 8.69 5.88

Return 1 year -0.13 20.34 8.45 26.63 17.99

Dec 10 2.52 2.63 -

Yr ago 3.51 3.53 -

inflation 5% Dur yrs Previous 2.60 -1.62 22.78 -0.75 9.26 -0.93 28.53 -0.72 20.64 -0.76

Yr ago -1.96 -0.03 -0.32 0.01 -0.07

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

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

28

★★★

FINANCIAL TIMES

Friday 12 December 2014

FINANCIAL TIMES SHARE SERVICE Main Market 52 Week High Low

Price +/-Chg

Yld

P/E

Vol 000s

0.65 4.42 3.16 3.12 2.59 2.65 1.81 2.48

17.21 78.59 -12.28 29.97 18.80 6.88 16.04 27.68

10.6 6209.6 139.4 2510.5 2424.1 10183.6 509.5 70.6

Aerospace & Defence AvonRub BAE SysX Chemring Cobham Meggitt RollsRoyceX♦ Senior UltraElc

728.00 454.90 228.00 310.00 491.40 831.50 282.50 1701

-12.00 -6.10 0.50 -5.80 -24.50 0.30 -30.00

740.00 486.60 289.50 329.20 551.50 1294 320.40 1987

567.00 374.10 181.50 258.30 421.70 777.00 248.90 1642

Automobiles & Parts FordMtr $X GKN

15.28 335.70

0.12 18.12 13.26 3.01 10.40 30237.3 0.70 468.00 281.10 2.35 11.43 5313.1

Banks ANZ A$X♦ BcoSant BankAm $X♦ BnkGeorgia BankIre € BkNvaS C$X BarclaysX♦ CanImp C$X HSBCX LlydsBkgX RylBkC C$X RBSX StandChX ..7.375%Pf ..8.25%Pf TntoDom C$X Westpc A$X♦

31.21 -0.28 35.07 28.84 5.72 561.00 11.00 758.00 441.38 7.04 17.47 0.09 18.03 14.37 0.44 1949 -110.00 2795.69 1918 3.58 0.33 0.01 0.39 0.24 64.32 0.21 74.93 59.92 3.99 237.25 -0.45 298.13 201.75 2.74 99.94 -0.27 107.37 85.03 3.96 615.30 -5.60 737.00 585.00 4.87 78.20 -0.40 86.87 70.02 78.49 -0.12 83.87 67.65 3.63 382.90 -2.90 403.90 291.60 926.60 -7.40 1434 898.20 5.31 113.88 120.95 108.50 6.48 128.25 139.75 124.50 6.43 52.50 0.04 58.20 47.23 3.52 32.24 -0.28 35.99 30.00 5.67

11.83 5631.9 15.72 4081.0 45.98 71591.0 8.54 257.1 -13.60 24938.9 11.33 2713.4 53.53 31257.5 12.68 1171.0 11.95 20806.5 237.69 130898.9 13.04 2725.4 -6.73 7014.7 9.11 6370.9 8.9 57.7 12.65 3263.6 13.45 6630.7

Basic Resource (Ex Mining) Ferrexpo IntFerMet Mondi Vale BRLX

57.35 3.55 1067 19.37

-3.65 194.00 57.35 5.36 1.69 1445.1 -0.27 13.50 3.50 8.16 620.5 -10.00 1140 895.00 2.70 14.36 1271.8 -0.56 36.11 19.13 6.13 -9.73 6361.2

Chemicals Alent Bayer €X Carclo Croda Elemntis Porvair Syngent SFrX Synthomer Victrex

357.30 115.80 93.00 2554 256.00 280.00 308.30 225.50 1961

4.30 0.15 -1.75 -0.10 3.00 0.30 -2.00 -9.00

393.61 121.40 310.45 2644 305.10 347.75 364.40 302.08 2051

294.56 91.31 80.00 1965 225.50 237.53 273.20 176.64 1536

2.52 1.79 2.85 2.53 1.86 1.04 2.13 2.66 2.19

15.25 226.5 26.51 3179.5 -3.29 67.0 20.14 260.5 17.93 559.3 20.48 6.3 19.64 313.7 16.82 198.4 21.90 144.1

144.00 322.20 119.50 249.00 88.56 324.58 1811 1369 1299 1943 14.80 96.00 232.00 875.00 25.50 46.40 325.00

108.66 145.59 101.00 170.00 37.50 248.00 1220 1044 742.00 1386 11.03 44.25 151.00 570.00 14.69 29.51 215.50

3.95 7.46 8.38 2.58 5.61 4.04 3.36 3.26 2.88 4.69 1.02 5.45 2.40 4.09 2.85 1.91 1.96

10.63 3.6 72.14 2324.1 12.1 16.14 67.1 39.55 10.0 15.14 60.5 -14.07 2394.3 13.21 267.5 41.27 84.2 80.41 300.0 24.19 42.8 11.31 287.1 24.03 246.7 11.95 34.6 7.55 719.8 19.18 2695.0 90.39 26.6

Construction & Materials Alumasc BalfourB ..CvPf Boot(H) ClarkeT Costain CRH GalfrdT Keller KierGp Kingsp € LowBonr Marshlls MorgSdl Norcros♦ StGobn €X Tyman

119.00 189.00 115.50 198.00 55.25 285.00 1491 1228 834.50 1470 13.93 47.75 218.50 660.00 17.88 32.96 306.25

-1.50 -2.50 0.25 -1.00 -4.00 4.50 47.00 -0.05 -1.25 -4.00 -0.50 -0.13 -0.57 0.25

Electronic & Electrical Equip Dialight e2v Tech♦ Halma Jhnsn HK$ MorganAd OxfordIn Renishaw Spectris TT Elect XP Power

794.00 174.50 666.00 29.50 292.50 1168 1896 1986 101.50 1395

9.00 -1.50 -2.50 -0.10 -7.20 -14.00 -15.00 2.00 -1.75 -15.00

992.00 176.75 683.05 31.92 366.65 1825 2240 2572 225.00 1798

619.54 145.33 552.50 24.08 258.10 928.50 1470 1606 101.50 1340

1.81 2.52 1.68 0.67 3.59 1.06 2.11 2.15 5.32 4.01

33.70 14.3 14.23 216.0 22.64 510.7 17.18 694.5 20.01 200.3 99.80 88.9 16.01 24.4 16.94 317.8 39.22 2054.5 13.45 204.9

-14.20 -14.70 -3.40 2.60 -35.00 -4.00 1.00 -3.00 0.01 -

459.60 500.00 417.50 357.60 729.00 518.00 343.50 1530 24.90 87.00

343.61 360.76 282.90 236.80 326.00 289.20 225.00 1217 18.25 65.00

3.68 3.77 5.70 3.02 2.66 3.83 7.50 3.05 1.21 -

6.79 2044.6 16.48 3497.8 15.41 1160.5 23.60 421.6 9.69 1.0 -53.94 11.5 15.02 43.0 15.07 134.6 6.61 15.7 5.81 0.2

52 Week High Low

Yld

Financial General 3i♦■ AberAsM♦ Ashmore BrewDlph Canaccord CharlsSt♦ CtyLonInv CloseBrs DBAG € El Oro

434.90 423.90 284.30 285.00 415.00 320.00 320.00 1507 24.50 70.00

Price +/-Chg FriendsLf Gimv Nv € GuinPeat Hargr Lans HBM Hlth SFr HenderGp ICAP Indvardn SKr ICG IPF Investec♦ Jupiter Liontrust♦ Man NB GFRIF Paragon Providnt RathbnBr Record♦ S&U Schroder ..N/V SVG Cap TullettPre Tungsten WlkrCrip

367.30 37.55 26.00 953.00 96.65 207.30 420.00 133.90 439.50 451.00 529.50 359.00 266.75 149.10 98.15 407.70 2426 1969 34.50 1942 2643 2073 427.20 255.30 232.00 41.25

52 Week High Low

-4.80 386.50 0.05 39.10 36.63 4.00 1580.62 1.65 96.75 -2.70 275.40 1.10 463.10 -0.10 137.70 -1.60 472.80 636.50 -6.50 606.50 -3.00 447.60 1.75 285.00 -1.30 151.40 0.40 106.50 -0.70 426.10 -9.00 2482 -11.00 2195 -0.25 46.92 -28.00 2129 -23.00 2784 -32.00 2176 1.30 480.00 7.80 395.30 3.25 409.75 53.60 -

Yld

P/E

Vol 000s

286.60 34.16 24.72 827.00 64.45 180.10 338.70 111.40 361.70 390.00 366.20 313.70 208.00 79.80 93.75 313.70 1588 1511 28.38 1555 2086 1692 226.00 234.40 203.00 38.50

5.76 5.13 2.24 3.86 5.24 4.17 4.62 2.06 3.59 3.51 1.12 3.15 3.64 1.77 3.50 2.49 4.35 2.78 2.19 2.80 6.60 3.42

44.11 58.46 -61.03 27.89 2.76 26.74 24.45 10.57 12.33 15.58 16.69 20.81 23.60 87.04 21.19 13.62 21.69 22.24 13.77 14.94 20.23 15.86 10.66 19.73 -12.47 7.65

6106.6 19.6 57.0 1154.7 25.1 1598.0 806.2 277.5 736.6 520.1 2161.9 578.2 4.6 6680.2 1386.0 407.8 181.6 17.2 138.2 1.6 309.6 39.4 484.6 373.6 1601.4 10.0

Tex Trifast Vitec Weir

590.00 2237 510.13 600.72 3.28 1375 1249.64 1127.28 367.39 203.88 10.40 197.80 342.25 48.07 62.95 307.50 26.13 360.00 2650.21 216.30 571.50 107.00 2291.65 26.96

0.49 1.03 1.85 2.65 2.87 1.93 2.08 2.33 4.23 3.03 0.82 1.73 3.40 0.70 1.96 1.30 1.93 1.93 4.81 1.84 3.28 2.90

3.19 32.67 22.35 26.57 12.87 13.80 26.35 16.36 21.90 21.80 23.75 25.51 15.09 62.49 23.97 19.00 -1.41 11.06 24.14 18.38 14.71 15.13 18.44 17.81

3.8 767.5 20.3 452.7 498.8 1.7 653.9 31.4 184.9 128.7 16.8 611.0 3.6 45.8 5147.2 79.0 1235.6 3.2 3124.3 331.3 2051.2 229.8 2577.4 13.0

Insurance

Food & Beverages AngloEst AscBrFdX♦ Barr(AG) Britvic♦ C&C €♦ Carr'sMill Coca-Cola H Cranswk♦ Dairy Cr Devro Glanbia € Grncore♦ HiltonFd Kerry € Nestle SFrX NewBrPlm PremFds REA SABMillX StckSpirit Tate&Lyl♦ TongtHu R Unilever ..NV €

593.00 3151 596.50 672.00 3.50 1701 1328 1375 503.00 290.25 12.45 294.00 375.00 58.29 71.70 675.00 30.50 367.50 3346.5 243.30 573.50 166.00 2654 32.50

-9.00 -50.00 -3.00 -10.50 -0.05 -14.00 -5.00 -20.00 -3.50 -10.75 0.08 0.90 -7.50 -0.04 0.20 -1.00 -13.50 6.00 -10.00 -8.00 -0.97 -6.00 0.05

725.00 3293 672.00 784.00 5.02 1945 1813 1499 560.50 324.80 15.53 303.90 534.50 60.25 73.30 700.00 165.71 489.75 3857 316.75 816.65 174.93 2786.15 34.00

Health Care Equip & Services Bioquell ConstMed GNStre kr Optos UDGHlthC♦

91.00 815.00 134.10 236.00 374.70

-3.50 -4.50 -0.90 -2.75 -

143.22 1113 164.10 248.00 381.75

83.10 650.00 121.90 147.25 308.40

3.63 2.22 0.65 2.11

16.44 17.90 27.77 41.77 39.92

23.4 57.9 454.2 4.9 171.1

190.75 477.80 1965 2808 946.00 420.00 735.00 467.25 495.50 115.00 1614 28.31 404.51 5540 352.60 139.50 2360

114.00 322.00 1333 2033 717.43 291.98 470.25 310.00 388.81 76.00 1111 20.69 305.30 3235.75 224.00 101.20 1634.12

1.26 1.96 7.17 1.54 1.71 0.85 3.64 2.48 2.66 0.71 0.52 1.73

30.67 14.88 12.10 9.60 14.01 12.09 20.18 11.13 21.44 -7.49 15.08 32.53 14.23 19.89 10.05 15.72 26.90

407.7 2985.2 257.2 470.6 262.5 306.9 43.6 4.0 4.6 15.3 1072.7 3242.8 379.1 1180.5 383.9 10036.1 81.6

832.00 525.00 489.77 4250 607.00 1801.14 376.20 69.00 2890 65.94 183.20 3214

542.50 392.25 209.60 2850 495.00 1108 234.50 49.00 2146 52.60 134.80 2548

2.17 3.10 5.31 1.22 2.78 3.06 3.22 2.12 3.53 2.06

52 Week High Low

Yld

P/E

Vol 000s

-0.50 53.00 23.00 1.52 430.00 324.82 1.88 34.00 15.00 -2.00 143.00 79.00 1.66

34.11 24.06 169.72 18.61

12.6 0.8 75.0 45.4

67.00 47.00 1.24 -19.50 500.00 386.74 2.01 -13.50 1204 847.50 2.19 655.00 455.00 69.00 23.00 0.88 12.43 5.95 690.52 535.00 1.68

9.60 16.64 37.73 680.44 -27.46 -1.05 17.31

22.6 164.9 15.8 104.6 9.0 10.0 0.6

-7.00 132.62 99.50 0.50 20.61 1.50 268.00 193.00 3.06 4.59 -0.13 15.19 6.50 -6.28 3.50 593.00 286.00 2.51 17.87 31.00 22.00 -2.79 3.50 90.50 39.00 0.84 24.80

331.0 136.7 286.0 328.3 2.0 112.3

House, Leisure & Pers Goods AGARmst BarrttDev Bellway♦ Berkeley BovisHme CrestNic GamesWk Gleeson♦ Headlam♦ McBride Persimn Philips €X PZCusns ReckittBX Redrow TaylorWm TedBaker

114.25 452.20 1892 2511 879.00 380.70 506.00 365.00 420.00 78.50 1573 23.88 305.30 5150 283.30 133.50 1950

-7.75 1.10 -25.00 -34.00 -7.00 0.30 6.00 -5.00 3.00 -0.75 14.00 0.23 -8.90 5.00 -5.40 0.40 -70.00

Industrial Engineering Bodycote Castings♦ Fenner Goodwin Hill&Sm♦ IMI MelroseInd Renold Rotork Severfd SKF SKr Spirax-S

622.50 417.63 211.70 2890 576.00 1213 255.90 56.75 2266 63.25 157.90 2861

-1.50 7.63 -3.50 -9.00 -5.00 -16.00 -4.60 -1.25 -34.00 -2.00 -74.00

15.27 128.5 11.06 8.7 9.37 607.5 10.93 2.7 19.91 16.0 17.06 1006.8 20.94 1855.2 -17.12 77.0 20.06 210.1 143.42 32.4 42.10 2298.7 21.70 141.4

Price +/-Chg 92.50 107.00 601.00 1695

52 Week High Low

Yld

P/E

Vol 000s

101.50 68.00 4.32 8.37 1.6 -1.50 134.00 73.00 1.31 18.36 65.2 6.00 690.00 539.00 3.83 15.02 26.4 2.00 2848 1639 2.48 11.05 1491.5

Industrial General BritPoly JardnMt $X Jard Str $X Macfrlne REXAM RPC♦ Smith DS Smiths SmurfKap € Vesuvius

618.00 57.99 33.30 36.25 454.50 605.00 310.10 1058 18.50 424.70

7.00 -0.41 -0.38 -0.38 0.90 -1.00 -0.80 -30.00 0.10 -14.50

695.00 64.60 38.10 49.50 603.00 672.90 359.10 1535 20.61 523.50

565.00 49.34 30.06 33.00 435.80 488.20 231.82 1047 14.49 388.80

2.35 2.22 0.70 4.41 4.31 2.56 3.22 3.76 2.46 3.53

13.63 6.0 14.61 261.8 12.84 169.5 12.16 111.6 11.31 2064.5 23.14 144.0 17.35 2182.3 18.19 1613.1 15.77 261.2 10.56 121.9

Industrial Transportation BBA Aviat Braemar♦ Clarkson Eurotunnl € Fisher J Flybe Grp Goldenpt OceanWil RoyalMail♦ UK Mail♦

342.70 410.00 1936 10.52 1154 105.00 236.50 1047.5 397.90 464.25

0.50 -2.00 -5.00 -0.08 3.00 -8.50 -2.50 -1.10 -10.75

361.60 585.00 2750 10.73 1565 151.56 500.00 1290 618.00 715.00

288.60 398.00 1900 7.12 1003 96.00 235.25 995.00 388.00 380.00

2.62 6.34 2.89 1.45 1.73 3.35 3.34 4.59

16.37 519.3 30.46 13.0 19.43 9.1 51.51 619.3 14.53 23.8 -7.68 418.0 -7.18 2.0 10.63 57.7 21.86 2734.6 24.54 6.6

1262 455.70 487.10 270.20 251.60 586.50 331.00 288.90 130.75 91.00 706.00 845.00 523.50 246.60 539.50 186.50 0.06 804.00 1501.5 437.00 61.00 805.50 406.10

5.00 -4.20 -6.40 -6.20 1.60 0.50 -2.00 -1.10 -3.25 -14.50 -34.00 -4.50 5.30 -9.00 -0.90 0.00 -7.50 -1.50 -6.20 -9.50 -2.40

1583 491.10 571.50 283.15 261.00 591.00 363.25 307.00 135.75 107.25 795.72 1108.23 815.00 248.80 665.00 211.52 0.14 853.50 1573.5 500.50 78.00 908.50 429.30

1175.33 408.40 413.70 232.60 195.00 479.50 267.25 225.90 115.50 78.50 615.50 815.00 513.00 193.00 495.50 163.80 0.04 560.52 1192 78.20 54.97 635.00 331.70

3.72 5.71 3.08 3.09 5.04 5.40 4.36 6.60 8.96 3.34 3.22 1.76 3.77 4.17 4.34 6.64 2.24 2.32 3.79 1.98 3.89

11.79 7.83 12.43 7.83 10.97 7.19 6.92 12.90 15.06 11.00 16.98 8.25 15.71 10.89 17.57 -6.74 5.67 18.02 -6.73 19.41 28.37 15.86

714.1 736.4 10681.3 381.7 79.3 948.1 49.4 4270.3 15.6 25.6 360.0 196.7 376.8 22676.5 18.2 12024.0 19.3 484.7 3710.1 4421.1 0.6 1553.8 3650.8

840.75 160.00 66.00 270.00 129.00 811.50 169.00 145.00 208.30 158.75 15.33 14.78 1170 243.75 148.50 1079 19.44 372.00 45.14 172.50 1320

0.75 -1.00 1.50 -0.75 1.00 1.50 -1.25 -1.00 2.50 -0.01 -0.09 -14.00 -15.25 -10.00 -0.15 0.60 -9.25 -6.00

850.00 190.00 77.00 377.00 130.00 1074 230.00 316.10 222.50 175.00 18.53 18.03 1351 434.00 176.47 1123 20.05 393.75 46.50 268.00 1565

610.50 143.00 54.00 239.00 79.99 699.00 165.00 142.00 167.10 2.90 14.28 14.09 981.00 177.00 136.66 851.53 14.51 293.00 36.86 172.50 1091

2.02 3.64 3.64 2.72 3.02 2.37 4.44 4.83 1.68 4.10 5.13 2.28 2.25 0.54 3.25 4.06 2.59

31.06 16.21 -2.57 -86.34 10.79 18.45 22.84 8.32 21.42 -4.31 33.14 31.95 34.85 264.08 11.45 23.32 21.81 10.17 81.47 8.79 17.55

19.9 13.0 36.3 103.7 59.0 335.9 0.3 242.0 9177.7 3.2 3463.9 1352.6 1729.8 9.0 3.1 3079.4 2380.3 58.7 751.7 8.4 3050.0

Afr Barrick 235.20 1173 AngloAmerX AngloPacif♦ 95.75 AnGoldA R 95.52 Antofagasta 713.50 ..5%Pf 0.60 AquarsPl 13.50 AsiaResM 10.25 AvocetMng 4.75 Barrick C$♦ 13.64 1361 BHP Bltn BisichMg 77.50 CoalfieldR# 5.43 EVRAZ 134.20

-1.10 -34.50 -8.50 -8.29 -13.00 -0.25 -0.10 -0.06 -25.50 -5.40

Admiral Amlin AvivaX Beazley Brit Plc CatlinGp Chesnar DirectLine Eccles prf Hansard Hiscox JardineL Lancashire■ Leg&Gen NovaeGp Old Mut PermTSB PhoenixGrp PrudntlX RSA Ins SagicFin StJmsPl Stan Life

Media 4imprint Blmsbury Centaur ChimeCm Creston♦ DlyMailA♦ HaynesPb ITE Grp ITV JohnstnP News Corp A $ NewsCpB $ Pearson PERFORM Quarto Reed ElsX ReedElsNV € STV Grp ThmReut C$X♦ UTV Med WPPX

Mining 322.30 149.60 0.90 -45.48 474.1 1678.5 1161 4.22 257.35 7219.3 214.01 92.50 10.65 -2.76 374.0 209.52 88.93 -11.28 1889.2 959.50 658.00 7.76 20.20 1967.4 0.60 0.60833.33 42.50 13.10 - 101.50 128.8 254.75 9.57 -0.26 123.1 14.39 4.25 -0.12 525.4 23.78 12.43 1.64 -4.85 4252.1 2102.53 1342.5 5.05 8.98 9680.4 126.00 75.00 5.16 -11.20 4.0 6.60 5.35 4.74 143.6 162.70 51.35 -9.79 1491.5

52 Week High Low

Price +/-Chg FstQuant Fresnillo GemDmnd Harmony R Hochschild Kazakmys Kenmr Lonmin MolyMin A$# Petra Petropvlsk PolymtIntl RndgldRs RioTintoX Troy Res A$ VedantaRs♦

Yld

P/E

Vol 000s

0.89 0.38 0.87 0.71 4.13 6.14

16.97 41.54 11.97 -6.83 -4.77 -2.74 -2.61 -14.89 -2.45 26.69 0.27 25.46 23.98 14.12 -1.18 335.14

20.8 1818.7 140.7 1543.2 1763.2 2107.0 9893.1 1960.8 638.3 2187.8 573.2 805.7 5460.9 1519.0 801.3

35.22 1.21 0.64 -1.88 843.70 2.20 16.07 398.05 5.98 13.04 8.50 -2.59 141.00 -4.13 228.30 6.07 49.50 467.00 4.07 7.08 0.02 0.00 35.49 3.12 103.25 7.70 86.91 2.87 11.59 2.15 -5.47 6.25 - -6410.00 621.50 20.87 5.90 8.86 100.00 12.70 254.95 -11.04 42.25 -22.92 3.75 -4.94 501.50 3.37 11.63 44.99 1.09 9.74 11.00 5.65 115.00 8.40 1715 5.53 500.00 3.61 9.16 114.00 11.94 709.16 5.41 7.83 164.69 2.91 6.63 1992.64 5.74 13.01 2087.69 5.43 13.38 54.75 -4.22 82.13 1.76 16.12 109.00 3.27 241.15 15.54 17.44 46.10 3.62 21.82 366.50 3.06 -29.20 555.50 2.26 12.98

20605.9 10267.7 13441.1 50310.4 50.0 2767.9 197.9 644.1 1.4 10994.5 8.8 21486.4 348.2 1679.0 1440.9 27.1 2.0 10.2 7725.2 244.6 516.8 1049.5 903.0 862.3 1950.9 10.4 5769.9 2303.6 4136.6 5430.7 4568.5 5754.3 12315.7 842.8 866.7 1294.9 6748.2 1591.8

907.00 -66.00 1512 875.00 745.00 -25.00 1037 658.00 162.75 0.75 223.00 137.00 19.72 -1.24 40.98 16.60 85.40 -2.60 207.46 80.50 248.90 0.30 355.52 170.00 3.70 -0.10 21.67 3.50 160.00 -3.10 336.60 155.50 0.07 0.15 0.07 193.90 -1.30 220.87 110.00 10.00 -0.75 98.25 9.57 602.50 6.50 690.00 315.18 4261 -110.00 5285.75 3600 2748 -49.50 3680.56 2721.27 0.42 -0.02 1.53 0.42 619.00 -20.00 1201 617.00

Oil & Gas Afren Aminex BGX BPX♦ Cadogan CairnEng Cape DragnOil Endeav Int' $ EnQuest Exillon ExxonMb $X FastnetO&G Fortune GenelEgy GeoPark $ GreatEEgy GrnDnGas GulfKeyst HellenPet € Hunting ImpOil C$X♦ JKX Lamprell Lukoil RUBX Nostrum OphirEgy Petrofac PremOil RylDShlAX♦ ..B♦ Salamand Schlmbrg $X♦ SEPLAT Soco Int TrnCan C$X Tullow Wood(J)

36.20 1.73 843.70 398.80 10.63 164.50 230.50 472.00 0.02 35.80 133.50 89.20 2.85 6.41 634.50 6.20 110.00 407.50 54.50 3.78 507.00 47.70 13.75 122.25 2223.4 509.00 117.60 724.00 168.90 2045 2102 58.75 83.01 110.50 243.40 52.43 372.80 569.00

0.05 -0.08 -28.70 -0.80 -1.80 -11.25 -0.45 -1.81 -6.00 0.53 -0.05 -0.10 -35.50 -6.25 -6.00 -0.27 -3.00 -0.39 -0.50 -6.25 -72.60 9.00 -2.70 7.00 -4.20 10.00 3.50 -0.25 -0.16 1.50 -11.10 0.59 -6.70 6.50

170.80 3.17 1420 526.80 12.75 276.66 335.00 632.50 5.92 148.40 299.00 104.76 14.73 14.50 1144 11.00 160.00 675.00 195.80 8.45 918.83 57.96 73.00 178.00 2593.8 825.00 333.30 1483 358.60 2864 2990.5 155.95 118.76 270.00 477.10 63.86 920.00 825.00

Pharmaceuticals & Biotech BTG 800.00 -2.50 819.00 CathayIn 26.25 41.06 Dechra 796.00 7.00 826.50 Genus 1327 -6.00 1427 1393 7.00 1709 GlaxoSmhX♦ HikmaPhm 2028 22.00 2065 Oxfd Bio 5.40 -0.08 5.60 RichterG $ 15.48 -0.02 21.75 4565 136.00 5470 ShireX VecturGp 130.00 171.50

490.20 26.23 655.00 924.50 1200.67 1156.25 1.77 14.80 2687 113.25

1.81 1.25 5.74 0.57 1.32 0.28 -

73.43 468.2 -57.19 2.7 35.95 61.9 27.88 44.8 16.26 10442.7 22.40 117.3 -7.85 1187.8 23.21 0.0 23.83 2770.1 -74.03 206.2

37.75 451.40 588.00 413.22 2382 575.50 1.16 487.60 98.25 0.99 705.00 270.10 924.00 126.50 186.72 417.00 324.00 47.75 319.10 590.00

3.09 2.88 3.58 1.77 1.24 1.24 3.16 4.64 3.95 4.34 2.71 4.64 3.91 4.23 5.37 6.17 3.93 1.61

10.26 13.38 4.72 15.18 5.10 4.70 10.69 7.10 6.42 11.78 5.57 5.18 6.25 5.67 7.07 13.48 12.48 6.76 7.11

478.5 231.7 2986.4 150.6 143.9 440.7 0.7 2030.0 622.0 573.4 2.3 2196.4 1814.0 1140.3 39.8 3.7 56.8 824.3 1091.9 411.7

Yld

P/E

Vol 000s

Real Estate

REITs

Assura BigYellw♦ BritLand Countrywd DrwntLdn Gt Portld♦ Green Reit € Hammersn Hansteen HIBERNIA Highcrft INTU LandSecs♦ LondonMtrc♦ McKaySec♦ MucklGp♦ PrimyHth Redefine SEGRO Shaftbry

53.50 570.00 758.00 453.20 2940 711.00 1.34 604.00 103.40 1.10 855.00 335.00 1146 150.70 220.00 470.00 358.25 50.40 376.30 774.00

0.50 -22.00 -10.00 -5.50 0.01 -2.00 -0.40 -0.01 5.00 -2.80 -13.00 -0.30 15.00 -1.75 -0.55 -4.80 -3.50

53.75 617.50 784.00 701.00 3075 731.00 1.70 633.38 115.00 1.20 865.00 359.90 1210 154.50 245.00 542.00 370.00 61.00 397.20 814.50

Price +/-Chg

52 Week High Low

Yld

Town Ctr♦ Wkspace

270.00 711.00

-5.00 288.00 212.25 3.87 -11.50 724.00 489.00 1.50

Cap&Count Cap&Reg Cardiff CLS Daejan DvlptSec Grainger HelclBar♦ HK Land $ Lon&Assc MacauPrp Mntview Q'tainEst RavenRuss RavenR Prf RavenR Wrt Safestre Savills SchroderRE Smart(J)♦ StModwen UNITE Gp Urban&C

353.30 -4.20 395.10 313.00 0.42 51.50 -0.75 53.23 42.18 1.26 1045 10.00 1099.5 810.00 1.21 1498 -12.00 1570 1215 5500 -40.00 5540 4350 1.62 209.25 -5.75 269.00 179.00 3.82 192.90 -3.40 250.00 167.80 1.07 352.50 -6.25 405.06 317.75 1.91 6.68 -0.05 7.14 5.65 2.47 39.50 61.50 36.55 0.32 233.00 -0.50 270.00 197.00 9960 440.00 10035.8 6675 2.01 95.00 -2.00 108.50 75.00 55.00 -0.50 86.50 53.25 134.25 161.50 130.00 8.94 37.00 68.00 34.00 231.00 -1.50 249.75 155.12 2.49 603.50 -10.50 684.00 567.52 1.74 59.00 0.25 61.00 49.00 4.20 91.50 113.00 86.00 3.20 375.00 -6.00 426.40 324.59 1.07 449.30 -2.70 466.70 388.30 1.07 238.50 267.00 215.00 -

Real Estate Inv & Services

P/E 5.23 3.45

Vol 000s 6.6 136.2

10.32 957.0 9.73 75.3 4.42 0.3 6.34 2.8 4.80 4.5 13.37 40.5 10.75 696.2 6.20 306.0 14.84 1147.0 68.46 6.2 5.24 8.0 11.29 2.0 21.60 419.7 -45.87 136.3 10.0 16.1 11.57 145.7 15.09 277.3 4.70 220.5 41.97 10.0 10.19 156.7 9.75 263.1 -5.51 2434.6

Retailers AO World AshleyL Brown N♦ Caffyns♦ Card Factor Dairy Fm $ Debenhm♦ Dignity DixonsCar Dunelm♦ Findel Halfords Inchcape JDSportsF♦ Lookers Mallett Marks&Sp♦ Morrison MossBros Next♦ Ocado Pendragn Photo-Me Saga SignetJwl SuperGroup TescoX♦ Thorntns VertuMotor

283.20 28.50 340.50 530.00 264.00 9.26 73.65 1820 435.90 886.50 200.00 473.80 714.50 488.00 128.00 55.00 477.50 174.80 81.63 6545 355.40 32.00 142.25 154.20 8129 835.00 171.30 118.50 60.50

2.20 -0.75 -9.70 -5.00 -1.00 0.10 -0.40 6.30 6.50 -15.00 2.20 -2.00 0.40 2.50 2.50 -1.90 -2.38 75.00 21.40 1.00 -0.50 2.20 41.00 5.00 -4.40 0.75 -0.25

412.38 30.06 600.00 670.00 265.30 10.90 89.40 1846.08 447.70 1045 330.25 515.00 732.50 512.00 151.75 85.55 512.00 269.79 126.18 7967 624.93 37.00 153.15 195.00 8545 1749 341.58 167.94 67.50

149.60 22.00 282.50 480.00 195.50 8.84 56.85 1291 319.20 745.97 188.41 420.40 556.50 333.81 117.25 43.70 359.20 150.60 69.00 5325 216.80 27.00 107.85 144.12 4211.25 751.00 155.40 87.00 51.00

-429.09 7.02 12.57 4.18 12.86 3.40 9.27 - 100.00 2.28 26.99 4.62 10.38 0.71 22.11 1.20 51.28 1.86 20.31 -15.12 3.02 15.44 2.44 15.24 1.39 19.87 2.02 11.35 -19.20 3.56 15.51 7.44 -12.66 6.13 25.11 1.97 16.90 - -1725.24 1.25 8.99 2.64 20.63 28.93 0.53 31.77 17.37 8.62 16.23 16.68 1.32 13.10

2.25 -5.00 6.25 -3.00 -26.00 -33.00 -6.00 1.00 -34.00 -9.00 2.20 0.25 -2.50 3.00 -5.50 -0.50 -3.75 0.50 -6.00 0.80 -3.50 2.50 0.50 2.30 1.30 -1.00 -7.50 27.00 1.50 -1.00 0.25

418.00 1841.76 1043 1196 1511 1476 1145 509.00 1834 1248 396.54 75.00 208.75 3708 907.65 802.50 371.00 504.00 924.00 1182 282.70 695.00 124.75 157.50 354.50 417.70 760.00 751.50 3168 1334.9 247.75 30.00

180.00 1414 260.00 711.00 1236 993.00 878.00 265.00 1345.36 968.50 294.03 50.00 135.00 2720 467.40 603.84 197.20 295.50 624.50 909.95 225.40 527.00 71.00 108.15 252.70 287.50 394.00 539.54 2157 725.00 165.00 14.50

3.10 1.91 3.50 0.98 2.54 2.08 2.66 3.25 1.84 2.58 5.09 3.55 5.35 2.28 8.39 2.15 5.62 2.07 2.24 3.21 1.37 4.37 1.77 3.45 1.39 1.67 3.86 2.07 5.44 1.97 4.93

445.3 276.6 420.5 1.0 722.8 57.6 4061.6 40.2 3278.7 71.5 35.7 280.2 802.7 9.9 1229.5 0.0 4498.3 10299.0 374.0 763.1 2494.8 1405.6 19.0 122.8 11.4 513.2 39198.5 10.9 783.7

Support Services Acal Aggreko APR Engy AshtdGp AtknsWS♦ Babcock♦ Berendsen Brammer Bunzl♦ Capita Carillion Comnsis ConnectGp DCC DeLaRue♦ Diploma♦ Elctrcmp♦ EnergyAst Essentra Experian G4S Grafton HarvyNah Hays Homesve♦ HowdenJny HyderCnslt Intserve Intertek Latchways Lavendon MngCnslt♦

219.00 1445 275.00 1172 1327 1079 1054 314.00 1760 1029 344.00 50.75 158.25 3369 504.00 749.50 209.00 458.00 745.00 1028 279.20 621.00 73.50 141.00 327.70 396.80 748.50 556.50 2220 727.50 180.25 16.75

186.07 15.40 5.37 22.22 16.66 23.90 20.42 17.79 28.16 40.53 14.73 16.66 9.77 22.13 13.03 23.83 11.49 23.30 27.62 20.13 -55.95 25.29 9.50 23.50 39.00 22.14 89.25 15.68 18.39 18.33 14.86 9.62

22.8 815.9 172.7 2818.5 172.3 1607.4 328.6 134.1 1128.4 2030.4 686.6 128.5 99.2 98.5 395.9 71.4 1023.0 9.0 776.9 1814.1 5604.7 126.7 25.8 3459.4 138.1 825.4 314.3 278.4 920.6 7.7 45.5 3.5

P/E

Vol 000s

52 Week High Low

Price +/-Chg MearsGp MenziesJ MichaelPge MITIE Northgte♦ Off2Off PayPoint♦ PremFarn Rentokil Ricardo RbrtWlts RPS Shanks♦ SIG SpeedyHr St Ives♦ TravisPkn TribalGrp Vp♦ Watermn♦ Wolseley

382.00 333.75 397.40 278.90 553.00 50.00 894.00 165.40 115.20 616.50 295.50 224.70 97.00 161.90 74.50 186.25 1786 159.25 630.00 55.75 3608

Yld

P/E

Vol 000s

-0.75 -11.50 -2.00 -0.60 -7.50 -3.50 -0.10 0.20 -3.50 -4.75 -3.10 -0.75 -1.00 1.25 -25.00 -1.00 -4.00 -0.25 -15.00

540.00 798.50 511.50 345.90 618.50 50.01 1212 242.40 133.60 800.00 363.00 360.40 121.00 216.30 83.00 225.00 2000.72 205.59 690.00 79.00 3729

358.75 306.25 358.70 266.90 440.40 19.40 845.81 159.38 108.20 597.70 270.00 215.10 84.50 143.40 50.75 156.15 1538 141.36 539.00 50.00 2966

2.30 7.94 2.64 3.94 1.81 3.95 6.29 2.01 2.32 1.83 3.28 3.56 2.19 0.82 3.57 1.74 1.00 2.22 1.26 2.02

17.37 182.9 7.55 70.8 27.82 378.8 80.42 904.3 13.42 64.8 37.15 2.3 16.37 34.0 12.12 1235.1 19.87 3658.9 16.95 7.4 33.65 5.5 16.64 83.9 -22.05 101.5 -144.94 1247.0 80.63 105.8 22.39 77.3 15.96 516.7 -81.25 2.7 15.28 6.5 92.92 3.6 19.11 1070.2

-0.50 -2.00 8.00 0.40 5.05

1112 890.00 335.00 487.00 112.70

778.50 506.00 247.06 284.20 65.95

0.64 77.20 3723.0 1.04 -2749.19 187.1 3.86 24.28 404.9 0.93 19.14 779.6 2.91 25.51 2116.4

109.88 2460 720.00 29.00 86.75 1169.96 234.41 174.00 458.10 408.00 834.50 18.75

69.25 1287 579.00 13.01 68.50 715.80 169.50 106.50 346.70 284.25 625.00 7.00

2.36 1.99 2.92 2.86 2.67 3.26 1.65 2.51 2.63 1.33 -

24.41 147.1 20.70 270.8 15.91 46.5 -6.33 8.9 22.63 0.4 19.93 743.6 23.03 32.3 14.75 11.3 25.75 3217.2 -12.99 22.3 22.85 348.5 7.10 16.5

451.00 155.00 828.50 105.50 334.30 1941

350.30 113.10 653.00 81.38 261.00 1169

2.41 3.73 5.45 3.92 2.78

16.77 26092.8 56.04 124.2 32.78 947.2 12.20 810.6 56.89 1358.5 32.52 107.6

Tech - Hardware ARM Hldgs CSR Laird Pace SpirentCM

959.00 844.00 311.20 348.80 71.20

Tech - Software & Services Anite AVEVA Computcnt DRS Data Elecdata MicroFoc NCC Grp RM Sage SDL Telecity TriadGp

78.00 1356 599.50 14.00 75.00 1075 197.25 150.50 438.90 397.00 790.50 15.75

-1.00 -10.50 24.00 -4.75 -0.50 1.50 -8.00 0.50 -

Telecommunications BTX Colt Grp Inmarsat KCOM Gp TalkTalk♦ TelePlus♦

411.10 134.50 785.00 89.50 306.00 1260

1.00 0.50 -9.00 -2.25 1.70 -15.00

3510.5 2789

-72.50 3806.5 -17.00 2973

Tobacco BrAmTobX ImpTobX

2871 4.06 18.33 3736.4 2156 4.17 38.98 1978.3

Travel & Leisure 888 Hldg AirPrtnr bwin.party Cineworld CompassX Domino's EntInns FirstGrp Fuller A♦ Go-Ahead GreeneKg IrishCtl € Ladbrokes MandarO $ Marstons Natl Exp Playtech PPHE Htl Rank Gp Restaurt SpiritPub Sportech Stagech ThomasCook TUI Travel Wethrspn Whitbrd♦ Willim H

141.50 272.50 109.10 391.50 1062 668.50 102.80 107.20 936.50 2448 729.00 3.10 113.20 1.73 145.00 248.20 658.00 447.50 163.00 631.00 99.50 54.25 378.30 117.40 437.60 791.00 4605 346.50

-0.50 -0.10 -3.60 -13.00 -12.00 -1.70 0.70 -27.00 -88.00 -3.00 -0.70 0.01 -0.50 -4.10 -3.00 13.50 -15.00 -0.50 -0.25 -0.90 -4.50 -5.60 2.00 36.00 -4.10

172.50 620.53 134.00 447.75 1115.63 704.30 171.40 146.14 1020 2655 933.50 32.05 183.00 1.95 158.40 309.27 847.50 459.23 178.80 716.74 111.00 94.06 416.90 189.70 456.20 905.00 4990 412.40

109.19 245.00 79.00 290.00 924.41 466.00 100.00 100.00 830.50 1621 725.50 2.50 108.80 1.61 134.50 213.40 570.50 286.50 119.69 534.13 68.75 47.00 339.22 99.40 321.10 688.00 3464 314.52

3.93 6.88 3.19 2.58 2.40 2.38 1.61 3.31 3.90 3.27 7.86 3.73 4.41 4.03 2.82 2.99 2.58 2.22 2.10 2.51 3.09 1.52 1.49 3.35

17.83 11.10 -28.70 35.64 40.54 37.15 64.21 22.17 19.54 15.08 17.39 24.94 24.12 22.20

274.40 1215 564.50 900.50 874.00 872.00

-3.50 -17.50 -1.50 -6.50 -5.00 -10.00

349.80 1610 829.50 965.00 913.00 919.50

274.33 1197.5 559.07 742.50 630.50 641.00

6.20 5.14 3.12 4.67 3.47 4.13

21.15 15213.7 13.58 3.5 -19.10 801.0 15.77 16721.4 30.12 735.7 16.81 2063.7

-116.47

26.12 16.04 6.44 36.22 19.10 6.61 1.65 16.63 -5.19 92.40 24.10 24.59 15.89

181.5 1.2 2757.0 1686.6 6431.1 167.6 554.1 1913.5 4.8 81.5 1189.4 0.2 3286.1 153.0 1587.8 1843.8 574.2 4.6 15.7 435.2 511.4 265.4 1404.2 13186.9 7130.6 53.4 739.1 8878.6

Utilities CentricaX DeeVally♦ Drax Natl GridX♦ Pennon UtdUtils

AIM P/E

Vol 000s

-6.50 250.00 160.00 1.57 16.35

13.9

Price +/-Chg

Aerospace & Defence Cohort

235.00

Banks BCB Hldgs STB

12.00 2790.5

-20.00

15.97 3000

10.50 -2.20 2245 2.22 28.14

7.0 0.1

402.50

3.00 450.00 350.00 1.96 20.14

4.7

132.00

2.00 150.00 106.00 0.76 -33.95

373.1

Basic Resource (Ex Mining) CropperJ♦

Chemicals Scapa

Construction & Materials Abbey AccsysTch Aukett

865.00 58.50 7.38

927.30 800.00 0.91 8.92 -1.25 76.50 0.59 -5.76 10.25 5.88 1.36 12.50

0.4 84.5 15.9

Electronic & Electrical Equip CeresPow Densitrn ElektronT FlowGp LPA ThorpeFW Zytronic

7.20 4.88 4.75 44.50 99.00 135.00 299.00

11.75 5.90 -5.23 7.90 4.00 2.05 -5.53 7.85 3.25 -1.34 -0.25 50.00 13.00 -11.24 148.00 65.00 1.36 6.77 150.00 120.00 2.26 15.47 303.00 184.97 3.04 20.31

13.6 12.2 41.4 519.9 20.4 6.6 70.6

9.75 -0.25 12.50 9.25 4.32 1365 40.00 1525 1000.00 1.90 17.68 180.50 195.00 172.00 - 1516.81 8.38 -0.25 27.00 8.25 -0.49 130.00 155.00 116.75 2.12 9.22 1361 1.00 1817 1300 1.69 19.82 8897.5 -120.00 11300 8450 1.40 13.67 112.50 -1.00 278.00 103.00 2.78 12.25 -0.13 19.95 11.00 7.20 15.22 125.00 -1.50 164.00 111.20 4.80 14.72 52.00 0.50 59.00 40.00 2.31 18.81 37.00 -0.50 39.98 27.88 9.49 442.00 460.72 366.00 1.76 20.27 21.25 50.00 20.50 2.54 -3.57 176.00 178.38 160.00 21.45 222.25 -7.75 419.50 205.44 4.05 11.00 52.00 -4.63 62.00 45.75 4.42 12.58 533.00 -3.00 707.00 252.74 2.42 11.67 396.00 -54.00 571.50 353.00 6.31 13.74

30.0 0.7 15.3 243.0 18.0 49.0 0.2 35.5 148.2 5.8 5.0 18.1 3.5 154.6 0.0 648.2 128.4 418.7 583.6

Financial General Ambrian Arbuthnot Ashcourt Rw Aurora BP Marsh BrooksMac Camellia CaptlMgt Charlemgn Fairpoint ImpaxGp Leeds MattioliWds Miton MAB Numis♦ Park Grp Plus500 PolarCap

Price +/-Chg Share ShoreCap STM Group WH Ireland

34.25 425.00 18.50 90.50

Food & Beverages FinsbryFd MPEvans Nichols PureCircle RealGdFd Ukrproduct Wynnstay

60.50 400.00 896.00 560.00 26.00 7.63 553.00

Health Care Equip & Services Advnc Med CareTech DeltexMed ImmunDiag SphereMed Tristel♦

119.00 228.50 8.25 338.50 23.50 80.50

House, Leisure & Pers Goods Airea Churchll gamingrealm HavelckE Intl Grt Mulberry Portmern SinclairW TelfordHms♦ WalkerGb

12.25 555.00 35.00 17.63 76.00 785.00 870.00 46.00 363.00 184.00

-2.50 -1.50 4.50 27.25 -2.50 -5.00 1.00

16.00 580.00 41.70 25.00 89.00 1020 930.00 120.00 379.00 219.00

9.03 380.00 19.50 16.00 60.00 562.50 700.00 35.00 245.50 151.05

4.49 2.63 0.64 2.76 6.52 2.42 1.01

18.82 20.42 -7.49 31.93 10.42 152.96 15.50 -3.01 13.38 20.78

3.4 1.7 8.9 10.0 18.7 2.8 2.6 107.2 53.0 37.4

24.01 15.00 4.40 -0.13 14.30 3.00 -5.57 194.99 76.00 6.79 6.13 217.00 140.00 5.35 20.20 12.50 790.00 405.00 1.63 27.52 6.70 1.25 -0.82

0.2 146.0 8.7 1.3 31.4 382.3

0.50 77.75 -1.75 58.38 112.00 0.13 11.33

20.4 284.3 29.6 31.5

Industrial Engineering 600 Grp CoracGrp Molins MS Intl♦ Pres Tech TEG Gp#

16.50 5.00 81.00 149.50 477.50 1.38

Industrial General API Group♦ Powerflte RM2 Symphny

48.50 50.00 62.00 9.50

42.00 27.43 50.00 5.75

4.12 8.03 2.16 19.46 -4.82 -22.78

Price +/-Chg

52 Week High Low

Yld

P/E

Vol 000s

Insurance Gable Helios

55.50 137.50

-1.25 90.00 53.03 14.69 160.00 132.00 1.09 27.59

108.50 84.00 309.50 44.00 149.50 126.25

-2.00 -

10.00 10.75 1.43 1.38 173.25 1.25 0.68 11.50 0.21 30.00 1.28 1.18 4.70 0.60 4.63 24.25 1.88 9.00 25.50 10.50 3.75 2.60 0.13 6.38

221.75 9.12 -0.75 12.75 2.29 6.45 1.15 -0.25 4.15 1.13 1.50 190.71 140.50 4.99 5.05 0.50 3.35 0.50 -0.38 20.00 7.20 0.01 0.67 0.19 -1.50 84.25 29.75 16.08 -0.03 5.00 1.03 -0.05 2.20 0.90 120.50 0.12 -0.58 2.50 0.60 -0.13 12.75 4.00 -0.25 33.00 22.00 5.07 1.10 16.00 8.75 68.00 19.75 17.33 8.50 -0.13 14.75 3.36 4.44 1.85 0.34 0.11 25.88 6.25 -

88.9 5.0

Media Avesco Cello Gp M&Csaatc MissionMk Next15Cm YouGov♦

239.15 94.00 4.61 -1.83 95.00 64.11 2.68 14.56 337.00 235.00 1.76 78.91 56.90 28.25 0.57 9.07 153.00 84.00 1.71 96.70 133.00 88.73 0.48 302.03

0.5 81.2 62.9 108.3 0.3 8.1

Mining AfricanMin# AMC BeowMin BotswanaD CentAsiaM Connema C'royG&NR GrekaDrill Herencia HighldGld KarelianDd KEFI Min LondMining OracleC PatagonG RamblMtls RichlandR ShantaGold SierraRut Sirius Min SolGold Stratex Xtract Res ZincOx

-1.11 -11.06 -1.22 -2.42 3.24 -1.87 -6.75 -52.04 -2.50 2.89 -12.50 -2.22 -0.36 -1.66 -7.97 11.31 -0.99 11.42 96.96 -205.88

-8.50 -2.04 -2.72 -0.86

0.7 4215.7 355.1 223.7 49.1 108.0 1280.4 259.8 4498.2 364.7 2114.8 7646.7 1582.1 5398.1 2808.9 44.3 222.0 3790.5 10.4 10230.9 2521.4 26.0 8000.8 5.0

Oil & Gas AlkneEng AmeriRes AndesEnrg BahamasP BorSthnPet Circle Oil ClontarfEn

32.25 37.00 35.00 2.05 5.01 12.88 0.85

-0.75 -3.75 -1.75 -0.37 -0.05

52.06 67.25 70.59 4.79 15.89 28.70 1.58

31.20 19.10 27.00 1.47 5.00 12.13 0.35

0.62 5.20 102.8 11.38 5954.5 - -3500.00 61.0 -9.19 1332.2 -78.28 842.1 5.27 488.9 -0.54 224.3

JPM Ind JPM JpSm JPM Jap♦ JPM Mid JPM O'seas JPMRussian JPMSnrSec♦ JPM Smlr JPM US Sml JupDv&G JupEur JupGrn JupPrim♦ JupUSSmCo KeystoneInv♦■ Law Deb LinTrain £ Ln&StLaw Lowland M&GHighInc Majedie Man&Lon MCGlobPort MCurPac♦ MercantIT MrchTst Mid Wynd MitonWw MMP Monks MontanSm♦ Mur Inc Mur Int ..B NB DDIF $ NewCtyEgy ..Sub NewCityHY NewIndia New Star IT NorthAmer NthAtSml Oryx Int PacAsset PacHorzn Perp I&G♦ PerAsset♦

500.00 -9.00 206.00 2.13 226.25 -1.00 771.00 -1.00 1025 -17.00 306.63 -11.13 97.50 -0.25 733.50 -14.75 165.50 -0.50 111.00 470.00 -3.50 140.00 -0.50 298.50 -0.25 648.50 1815 -11.00 517.50 0.50 374.00 355.00 -13.00 1276 -3.00 156.00 -1.50 235.38 -0.13 230.00 -4.00 176.00 301.00 -6.00 1432 4.00 466.00 -3.50 303.50 -0.50 157.00 4.75 386.30 3.80 442.75 -7.25 772.50 4.00 1022 -7.00 1125 1.19 0.00 22.00 0.13 64.25 0.25 316.00 -14.00 71.50 1.00 865.50 0.50 1780 -28.00 450.00 2.50 190.75 -0.25 183.38 -4.38 397.00 -0.70 34700 -250.00

527.94 212.48 254.00 842.00 1063 545.75 102.50 877.00 171.50 115.00 483.00 145.89 305.50 672.50 1848.64 562.00 383.00 410.50 1547.5 173.50 243.00 281.50 180.50 313.50 1666 524.00 306.50 158.65 10.00 406.00 553.00 808.00 1150 1538.69 1.25 42.00 0.15 68.00 336.00 76.24 888.50 1820 460.00 197.00 196.00 403.60 35120

312.50 174.50 195.00 669.10 890.95 305.00 96.38 632.40 134.50 103.50 371.25 133.20 268.34 596.99 1651.76 465.10 331.00 330.80 1219 145.00 171.75 230.00 154.25 257.00 1153 422.18 256.00 147.00 4.00 348.40 390.50 699.86 912.00 1000.00 1.10 21.00 0.06 62.00 194.03 65.00 759.73 1520 362.11 143.63 158.75 350.81 31810

1.24 2.20 1.46 4.99 1.30 0.42 0.90 0.74 0.79 2.60 2.75 2.90 1.81 3.80 2.74 0.90 5.86 5.98 2.27 2.16 2.23 5.06 1.12 1.02 1.58 3.98 4.21 6.47 3.18 1.36 0.82 3.00 1.61

PolarFins ..Sub PolarHealth PolarTech ProspJap $ QatarInvF $ RENNUnivG# RIT Cap RobecoNV € RolincoNV € Ruffer Inv SchdrAsiaP Schdr Inc SchdrJap SchdrOrient SchdrUK SchdrUKMd ScotAmer♦ Scottish In ScottMort ScottOrtll♦

99.25 9.38 164.50 560.00 0.97 1.29 223.00 1424 30.38 28.32 212.75 277.25 265.25 127.50 188.00 156.00 432.00 239.00 607.00 243.20 834.50

109.50 21.00 165.00 573.50 1.19 1.48 297.00 1445 30.91 28.98 220.00 285.00 275.00 133.50 201.59 198.50 527.50 258.75 622.00 257.70 900.00

92.00 6.00 136.50 431.00 0.91 1.11 200.00 1230 26.47 24.80 193.50 220.25 235.50 106.79 157.51 146.83 402.49 221.99 536.00 189.00 671.20

2.07 2.28 2.02 1.21 3.69 1.37 3.99 2.88 1.78 4.31 1.91 1.19 1.38

52 Week High Low

Price +/-Chg Cluff NR Egdon Res Enegi Oil EuropaOil FalkldO&G FaroePet GETECH♦ GlobalPet Gulfsands Indus Gas Infrastrata Iofina Ithaca Engy KBC Adv Max NewWldO&G PetrelRes Petroceltic PetroNeft Plexus♦ PresidentEn Rockhop Serica Sound Oil TowerRes TrinityE UnJackOil VictorOil VolgaGas

4.63 12.13 1.63 7.50 19.75 59.25 41.00 2.63 22.75 287.50 5.63 34.00 51.00 86.50 0.84 0.17 5.38 134.00 5.03 194.63 24.00 61.50 5.00 9.88 0.54 32.00 0.18 40.75 89.50

0.13 -0.13 -1.75 -1.75 -3.50 -2.75 2.75 -2.00 1.00 -1.00 -0.07 -0.02 10.00 -0.23 -1.38 -3.00 -4.00 -0.50 -0.50 -0.01 -3.00 -0.01 2.13 -1.50

5.48 3.00 43.75 8.75 10.25 1.38 10.75 5.68 33.75 19.50 154.89 59.25 110.00 38.50 4.98 7.50 2.50 71.91 21.00 900.00 280.00 15.10 5.50 158.00 20.75 165.00 48.75 142.00 79.00 3.96 0.58 1.00 0.13 18.25 4.75 224.00 98.50 7.25 3.78 325.00 190.25 0.53 50.00 14.30 159.75 61.00 18.00 4.75 14.00 4.50 7.25 0.52 160.00 31.30 0.52 0.16 58.50 0.89 143.00 87.00 -

-3.21 -39.88 -0.76 -35.71 -41.40 -75.00 8.28 -0.66 -1.90 54.76 -4.21 -15.03 3.95 12.24 -0.40 -0.47 -12.65 -6.73 -44.47 33.84 -108.11

-3.72 -2.85 -3.61 -0.53 -1.51 -2.27 -43.21 10.92

335.4 90.0 307.8 225.5 1308.5 547.6 57.1 32.1 566.3 0.1 12.5 147.0 1877.8 89.2 1203.6 5919.3 2.9 868.7 1036.7 264.2 1443.9 2471.4 725.3 1188.4 8644.7 181.0 6811.0 356.6 35.2

Pharmaceuticals & Biotech Abcam AllcePharm♦ Epistem e-Thera GW Phrms HtchChMd ImmuPhar ReNeuron Sareum SinclairIS Vernalis

450.00 32.75 277.50 28.50 373.00 1395 53.00 3.50 0.39 34.00 49.75

2.00 533.85 0.13 41.00 342.00 36.55 -11.50 541.00 1550 0.50 67.00 4.39 -0.04 0.75 -0.50 39.18 -0.63 53.00

270.88 30.00 270.00 19.02 151.00 600.00 41.00 2.71 0.35 23.30 28.59

1.61 2.77 -

26.44 234.5 10.24 203.4 -17.35 0.0 -10.93 1666.8 -53.54 329.3 171.61 12.5 -11.59 248.4 -7.78 585.4 -8.56 5033.6 -36.96 352.8 -17.23 13.8

Real Estate Conygar FltchKng

182.50 51.50

SecTstScot♦ Seneca I&G♦ Shires Inc StdLf Eqt♦ StdLf Sml StrategicEq Temp Bar TempEmerg TRIG ThreadUKSel TREurGth TroyInc&G UtilicoEmg♦ UtilicoInv♦ ValAndInc♦ Witan♦ WitanPac WorldTst WwideHlth♦

138.75 136.25 245.00 399.00 277.00 193.13 1188 543.00 103.25 171.50 512.75 66.38 191.75 111.00 258.00 743.50 232.13 243.50 1685

1.00 185.00 150.00 0.82 11.56 1470.8 2.00 55.78 33.00 2.91 8.75 7.5

InlandHms♦ Lok'nStor♦ LXB Retail MirLand NewRiver PnthrSec PSPI SiriusRE €♦ Songbird SumGermny €♦ TaliesinPr UnitchCP Winkworth

Price +/-Chg

52 Week High Low

Yld

57.50 234.00 140.00 126.50 295.00 317.50 25.75 0.40 334.75 0.68 1952.5 49.88 126.50

-1.00 0.75 -6.00 0.50 -3.75 0.13 1.50

60.25 240.00 147.50 255.00 322.00 357.00 31.04 0.41 359.26 0.70 2099 54.80 189.10

0.47 2.71 3.47 3.78 0.75 0.92 4.43

2661 163.00 380.00 312.00

62.00 7195 1742 59.86 1383.0 -4.00 237.40 120.00 8.6 1.00 558.00 316.00 4.21 14.99 299.6 387.00 240.00 2.16 27.71 8.8

43.00 178.00 119.25 125.00 264.75 295.00 21.00 0.28 159.92 0.50 1600 37.00 122.00

21.28 400.6 296.58 10.2 24.97 306.6 9.44 4.5 27.66 64.3 9.15 4.2 -2.83 11.5 6.59 2182.0 3.92 23.1 4.13 473.2 14.40 0.1 4.61 40.8 11.39 4.0

Retailers ASOS Koovs Majestic♦ StanlGib♦

Support Services AndSyks Augean Begbies Christie Empres GreenCmp Hargreaves Hydrogen Impellam ISG JhnsnSrv JourneyGp LonSec♦ Matchtech NewmkSec NormanBr NWF Optimal Pay PennaCns Petards RedhallGp Renew Restore SafeCharge Servoca

315.00 56.00 44.38 135.50 45.00 1.05 690.00 79.50 510.00 349.00 60.25 128.50 2335 570.00 2.03 22.50 131.00 402.00 146.00 10.13 13.50 278.50 256.00 243.50 17.00

-0.50 -10.00 -1.00 -1.50 1.25 3.00 -5.00 -1.50 3.75 -3.50 2.50 -

Amati VCT AmatiVCT2 ArtemisVCT Baronsmd ..VCT 2 ..VCT 3♦ ..VCT 4 ..VCT 5 BSC VCT♦ ..VCT2 Crown Place Frsight3VCT Frsight4VCT Frsight4C FrsightSol Inc&GthVCT KingsAYVCT Maven I&G MavenVCT2 MavenVCT3 MavenVCT4 MavenVCT5 MobeusI&G ..I&G 2VCT ..I&G 4VCT Nthn 2 VCT♦ Nthn 3 VCT♦ NthnVent♦ ProVenGI ProVenVCT UnicornAIM

67.75 103.25 64.00 70.75 91.75 95.00 89.00 72.75 87.50 56.00 30.00 55.13 53.75 48.00 100.50 95.50 18.00 62.25 53.25 75.75 87.00 35.13 86.00 105.25 102.50 75.25 93.75 77.75 78.50 91.50 128.00

-1.00 -1.00 0.25 -2.00 1.00

385.00 56.75 55.00 145.00 60.50 2.35 906.50 116.40 530.00 356.00 65.00 167.00 2600 650.00 2.34 40.00 163.00 558.09 155.00 15.99 65.00 327.13 278.20 245.00 18.50

260.00 42.00 37.54 72.00 33.00 0.90 522.50 73.00 337.25 261.60 51.25 113.00 1850 505.00 1.35 20.05 130.00 303.75 93.21 8.25 9.00 166.00 133.00 162.00 6.25

6.60 0.63 4.96 1.11 0.78 3.25 5.79 2.35 2.62 2.01 2.14 2.96 3.20 1.63 3.66 1.71 1.29 0.98 -

13.99 14.42 13.35 24.79 7.62 -0.96 5.65 -29.00 89.79 26.68 15.11 18.86 20.55 16.29 11.98 -2.02 11.83 24.04 88.81 -1.58 -0.41 15.27 36.71 201.24 28.72

0.3 350.9 24.2 0.7 0.5 0.1 78.2 0.9 4.0 73.8 714.1 7.0 0.0 9.1 250.0 1.1 13.4 772.7 2.2 20.2 9.5 201.4 306.9 20.2 8.8

80.50 67.50 7.38 71.0 123.50 103.00 6.54 108.5 69.50 58.50 6.25 71.5 77.80 69.50 13.43 73.6 101.49 91.00 13.62 95.0 110.10 94.00 16.32 97.9 96.10 86.75 14.61 92.0 78.39 71.50 8.25 74.9 92.20 83.00 6.29 97.1 61.00 53.50 8.04 63.3 30.50 29.00 8.33 31.0 68.10 49.50 3.63 74.2 64.70 51.00 86.0 51.00 30.00 82.5 113.00 97.00 5.97 101.6 106.24 93.50 10.47 109.9 19.50 17.00 5.56 19.4 69.00 56.00 7.23 64.3 56.75 43.00 4.69 58.3 78.00 70.00 5.61 82.2 89.00 78.00 5.34 95.5 37.00 25.00 5.69 40.2 107.90 84.00 4.07 95.4 119.50 97.00 1.19 130.5 116.00 99.00 5.12 113.5 81.00 73.50 7.31 82.2 99.48 92.00 5.87 103.3 88.88 75.75 7.72 84.8 82.84 76.00 8.28 85.3 97.00 89.50 7.65 101.5 132.00 116.00 4.69 137.2

-4.6 -4.8 -10.5 -3.9 -3.4 -3.0 -3.3 -2.9 -9.9 -11.5 -3.2 -25.7 -37.5 -41.8 -1.1 -13.1 -7.2 -3.2 -8.7 -7.8 -8.9 -12.6 -9.9 -19.3 -9.7 -8.5 -9.2 -8.3 -8.0 -9.9 -6.7

52 Week High Low

Price +/-Chg Synectics Utilityws♦

152.50 262.00

Yld

P/E

610.00 140.00 5.57 40.06 -12.00 373.28 180.25 1.15 21.53

Vol 000s 2.4 114.1

Tech - Hardware AminoTech IQE

129.50 17.50

-1.00 132.00 -0.25 28.55

75.24 2.66 21.24 78.9 12.08 -48.21 2019.7

Tech - Software & Services Blinkx BondInt Brady CastletonT Datatec DDD Eckoh EgSoltns Iomart K3BusTc♦ Monitise OMG Progility Pub Tech SciSys WANdisco

25.00 94.50 68.00 2.10 292.50 3.38 45.63 71.00 177.50 228.50 28.75 32.25 7.50 142.50 90.00 382.50

-0.25 -1.00 -0.03 -0.50 12.00 -1.50 -0.50 -0.25 -

221.50 153.75 84.00 2.45 321.25 8.00 48.50 84.00 300.00 239.63 82.75 32.50 11.49 399.70 97.00 1420

23.25 86.00 57.17 0.45 235.00 3.00 28.13 42.00 163.00 133.00 26.00 25.00 4.00 125.50 64.00 255.15

1.90 2.50 3.54 0.69 0.99 0.44 1.24 1.62 -

-21.26 638.4 25.15 5.7 24.15 57.3 -10.50 5546.5 18.04 0.0 -2.89 5.0 107.61 496.4 -121.58 3.3 21.98 1928.5 28.35 25.0 -8.08 17173.9 -27.68 183.9 -47.77 0.6 -61.19 1.0 14.69 0.8 -4.92 7.7

Telecommunications AltNetwks AvantiCom Daisy Grp

458.00 269.75 182.50

-2.00 609.00 394.50 2.84 24.94 -2.25 329.25 162.75 -5.68 3.25 193.70 137.00 3.01 -30.12

34.8 151.5 0.1

76.00 62.50 135.00 17.75 226.75 281.75 216.50 12.75 80.00 127.00

-0.25 -1.50 -0.13 -0.75

80.00 75.00 150.00 70.20 249.00 304.50 235.70 18.22 92.65 165.00

9.26 -2.08 232.56 12.82 21.38 -21.04 17.13 20.10

0.1 0.5 0.8 456.0 1.3 701.8 114.3 154.0 0.5 354.6

ModernWtr RenEnGen♦ Rurelec SeaEnergy

22.50 65.25 4.50 25.00

-0.50 -0.13 -1.50

43.00 81.00 15.50 44.00

-3.68 3.14 17.85 -0.60 -32.22

40.0 0.0 175.0 103.7

MMP Marwyn Val SparkVent TerraCat Tiger Res

4.75 205.25 4.63 106.00 1.13

Travel & Leisure Celtic ..6%CvPf ..Cv Pf Cupid Dalata# Dart GoalsSocc MinoanGp PeelHtls Prezzo

72.00 50.00 5.18 120.00 14.50 16.90 209.24 177.75 0.97 169.45 0.85 8.80 66.00 118.00 0.24

Utilities 20.00 63.00 3.51 23.50

Investment Companies Conventional (Ex Private Equity) 52 Week Price +/-Chg High Low 3i Infra♦ 152.00 0.30 152.30 129.10 AbnAsianIn 198.00 -0.50 213.80 171.30 AbnAsian 937.50 -6.50 1014 751.00 AbnJapInv 437.00 -3.25 452.00 319.00 AbnLatAmIn 67.50 -1.00 85.68 67.05 ..Sub 1.50 -0.25 5.89 0.50 AbnNewDn 178.50 -2.50 195.00 150.25 AbnNewThai 454.00 -4.00 467.00 325.16 AbnSmlCo 182.00 -1.00 231.50 174.00 Abn UK 307.00 -1.50 324.00 288.00 Abf Gd Inc 159.88 -0.88 185.25 138.25 Abf Sml 1040 -21.00 1237 966.00 AcenciADbt 103.25 109.00 98.00 AdvDvpMk 433.00 3.00 473.66 382.00 Alliance♦ 471.30 -2.50 482.00 420.20 AllianzTech 560.00 -22.50 584.50 463.07 AltAstsOps 45.75 0.25 46.25 35.50 Art Alpha 291.00 -3.38 323.75 269.00 ..Sub 35.00 -0.50 49.49 34.00 AsianToRt 187.00 -6.50 198.75 163.00 Aurora 151.50 -3.00 174.50 149.00 BG Japan 368.75 -0.75 392.00 313.50 BG Shin 297.00 -3.00 342.00 282.50 BSRT 30.88 50.75 27.00 Bankers 578.00 2.00 598.50 506.00 BrngEmEu 524.50 -0.50 750.75 520.50 BH Global 1235 1235.6 1162 ..EUR € 12.00 14.00 11.80 ..USD $ 12.20 12.35 10.01 BH Macro 2051 -2.00 2121.5 1919 ..EUR € 19.89 0.04 20.10 18.40 ..USD $ 19.73 0.09 19.98 18.40 BiotechGth 675.00 -10.00 710.78 390.01 BlckRCom 88.00 -1.75 119.88 87.00 BlckREmEur 207.50 3.00 280.00 202.90 BlckRFrnt 109.25 -1.25 133.28 108.00 BlckRGtEur♦ 226.00 -1.50 254.15 201.75 ..Sub 12.75 36.50 8.00 BlckRHSUK 129.25 0.25 143.00 120.00 BlckR I&G 173.50 -0.50 178.00 158.01 BlckRckLat 395.38 -4.63 508.45 385.00 BlckRckNrAm♦ 114.75 -1.00 117.50 98.75 BlckRSmlr 762.00 -4.00 938.99 697.00 BlckRThrmt 267.38 -2.63 336.00 238.00 BlckRWld 314.20 -0.80 520.99 309.00 Bluecrest A 186.50 -0.40 188.00 171.60 Brit Ast 134.75 -1.25 143.50 119.25 Brit Emp♦ 506.00 1.00 527.00 470.20 Brunner♦ 526.50 -2.25 552.50 486.00 Calednia♦ 2295 2331 1865 CanGen C$♦ 19.20 0.30 21.00 17.34 Cap Gear 3225 -45.00 3465 3030 CayenneTst 148.00 149.10 134.00 CayenCULS 105.50 0.25 105.25 105.25 City Merch 188.63 0.13 193.73 177.25 CityNatRs 105.88 -1.13 146.75 104.75 City Lon 377.50 -1.50 390.50 345.00 DexionAb 174.50 -2.50 177.00 155.00 ..EUR € 2.45 2.50 2.16 ..USD $ 3.74 0.01 3.75 3.18 DiverseInc 80.00 90.75 73.02 Dun Inc 256.25 -6.75 371.25 239.00 Dun Sml 180.50 -1.50 243.50 171.30 EcofinWatr 140.25 -3.25 176.75 122.00 ..CULS 106.50 111.70 102.50 EdinDragn♦ 270.00 -6.25 288.00 225.00 ..CULS 105.50 107.75 101.75

Yld 4.41 3.99 1.07 1.03 6.30 1.90 1.76 3.46 3.36 4.28 2.26 3.67 2.04 1.05 1.74 2.51 2.47 3.62 6.78 0.99 1.25 2.65 3.17 4.36 1.57 1.50 6.68 4.67 2.08 3.32 2.14 0.72 0.50 0.81 5.30 5.19 3.88 2.68 4.33 2.85 4.68 0.81 -

NAV 133.8 196.0 947.7 458.2 73.4 195.1 514.5 220.1 319.1 182.4 1133.7 108.6 475.7 542.6 593.2 49.7 333.7 204.6 170.7 367.0 311.6 45.4 595.3 595.6 1367.0 13.5 2161.0 20.9 20.8 693.9 85.7 233.4 114.8 238.4 134.6 174.2 441.3 123.6 875.6 320.6 347.7 196.0 137.8 565.7 596.2 2677.0 26.0 3188.3 154.7 183.0 130.3 368.9 184.4 2.7 3.9 78.7 264.3 213.7 190.6 298.0 -

Dis(-) or Pm 13.6 1.0 -1.1 -4.6 -8.0 -8.5 -11.8 -17.3 -3.8 -12.3 -8.3 -4.9 -9.0 -13.1 -5.6 -7.9 -12.8 -8.6 -11.2 0.5 -4.7 -32.0 -2.9 -11.9 -9.7 -9.6 -5.1 -4.8 -5.1 -2.7 2.7 -11.1 -4.8 -5.2 -4.0 -0.4 -10.4 -7.2 -13.0 -16.6 -9.6 -4.8 -2.2 -10.6 -11.7 -14.3 -26.2 1.2 -4.3 3.1 -18.7 2.3 -5.4 -9.3 -4.1 1.7 -3.0 -15.5 -26.4 -9.4 -

Edin Inv Edin WWd EP Global Estabmt♦ Euro Ast EuroInvT F&C Cp&I♦ F&CGblSmlr F&CMgdG F&CMgdI FidAsian♦ FidChiSpS Fid Euro Fid Jap Fid Spec♦ FinsG&I For & Col FstPacfic H HK$ Geiger GenEmer GFIS GRIT GoldenPros ..Sub Hansa ..A Hen Div♦ HenEuroF HenEuro HenFarEs HendGlob♦ HenHigh HenInt Inc Hen Opp HenSmlr HendVal Herald HICL Infra♦ Impax Env. Ind IT Intl PP InvAsTr Inv Inc♦ InvPerp IPST BalR IPST Gbl Eq IPST Mngd IPST UK Eq InvPpUK Invs Cap A Invs Cap B Invs CapU JLaingInf JPM Amer JPM Asn JPM Brazil JPM China♦ JPMElct MC ..MG♦ ..MI JPM Emrg JPM EurGth JPM EurInc JPM EuSm JPM Clavr JPMGIConv♦ JPM GEI JPM I&C Uni JPM Inc&Gr

648.00 393.50 226.75 182.00 978.50 762.50 255.00 885.00 140.50 122.00 233.50 129.90 160.50 72.13 845.50 535.00 417.00 7.63 22.25 537.50 22.25 24.00 28.13 0.14 970.00 897.00 91.50 1014 800.00 321.50 378.50 177.63 119.00 786.75 539.50 250.00 662.00 152.60 148.50 290.50 136.70 184.50 280.00 75.38 117.00 153.50 101.63 158.25 312.13 91.50 91.00 352.50 120.80 283.50 226.00 56.50 175.00 100.50 572.50 101.00 586.50 220.00 121.75 199.13 596.50 105.25 118.75 351.50 105.50

0.50 658.60 565.20 3.63 1.25 452.45 332.25 0.51 0.25 234.80 207.04 1.19 197.00 160.00 2.58 1.00 1040 800.00 5.31 5.50 797.00 659.33 1.84 -5.00 271.75 231.75 3.82 -12.50 910.55 781.00 0.79 -1.00 145.00 126.00 125.00 110.00 3.77 -1.50 251.50 195.50 0.47 -0.60 137.99 97.20 0.89 0.10 163.35 137.40 1.85 0.38 75.75 54.17 -3.50 966.00 796.84 1.92 -1.50 551.50 464.25 2.02 -1.30 426.00 361.90 2.69 -0.45 9.48 7.35 2.53 34.89 19.25 -5.50 583.00 473.80 37.00 20.00 -2.75 70.00 24.00 49.00 26.50 0.38 0.03 -12.50 1010 824.37 1.65 -3.00 986.00 822.00 0.56 93.50 87.50 5.52 -4.00 1029 816.47 2.10 -0.50 865.00 678.25 2.13 345.00 289.25 5.57 -5.50 391.00 336.20 2.64 -0.88 184.50 156.50 4.79 -0.13 120.89 103.00 3.53 -8.00 971.99 780.00 1.33 -3.00 616.39 468.13 1.76 256.00 235.00 0.60 -3.00 747.00 594.00 0.30 153.40 131.30 5.84 -0.25 156.50 136.00 0.81 293.00 263.00 1.72 0.50 139.50 125.00 4.50 -3.00 198.00 146.79 1.73 -4.00 294.00 255.00 4.27 0.13 77.50 67.25 6.63 117.80 108.50 -0.50 156.40 138.00 0.52 101.81 100.00 -0.50 162.00 142.00 3.35 -3.88 346.98 281.00 2.08 -0.50 99.00 87.00 4.84 -1.25 103.00 87.03 378.00 347.00 0.92 155.35 113.60 5.28 2.00 288.00 225.80 0.95 -0.50 231.29 188.34 1.15 -1.50 76.49 54.02 1.77 -2.75 187.05 139.25 0.91 101.99 99.00 -1.50 582.24 507.66 1.31 105.00 93.01 0.84 -6.50 623.00 498.94 0.94 -0.50 240.00 193.00 3.05 -1.00 128.00 104.75 -0.63 246.80 164.00 1.46 -1.00 633.50 534.51 3.27 112.50 101.00 -0.75 130.00 104.80 4.29 -0.50 370.50 329.50 112.00 98.50 2.09

647.8 432.2 236.1 218.5 973.0 820.4 246.6 878.8 140.7 119.3 259.1 143.7 175.8 80.5 913.9 529.8 454.3 23.8 564.9 54.5 31.1 1165.2 1165.2 88.3 978.0 806.3 314.5 418.6 170.7 120.9 892.5 612.4 279.2 793.1 130.6 168.0 309.6 125.2 205.0 290.4 72.7 119.7 153.6 103.3 157.4 358.2 100.0 100.0 399.9 105.8 279.1 249.1 63.4 193.1 101.1 579.9 99.9 642.6 243.9 131.8 235.1 610.1 101.2 113.5 352.2 109.8

0.0 -9.0 -4.0 -16.7 0.6 -7.1 3.4 0.7 -0.1 2.3 -9.9 -9.6 -8.7 -10.4 -7.5 1.0 -8.2 -6.5 -4.9 -59.2 -9.5 -16.8 -23.0 3.6 3.7 -0.8 2.2 -9.6 4.1 -1.6 -11.8 -11.9 -10.5 -16.5 16.8 -11.6 -6.2 9.2 -10.0 -3.6 3.7 -2.3 -0.1 -1.6 0.5 -12.9 -8.5 -9.0 -11.9 14.2 1.6 -9.3 -10.9 -9.4 -0.6 -1.3 1.1 -8.7 -9.8 -7.6 -15.3 -2.2 4.0 4.6 -0.2 -3.9

-1.25 1.25 0.04 -0.02 3.00 -3.00 0.48 0.45 0.25 -1.50 -0.50 -1.75 -0.50 -0.75 -2.25 -1.50 1.00 -2.30 -15.00

553.4 234.8 258.2 870.8 1086.6 355.1 94.3 854.7 171.8 122.6 461.3 141.5 296.3 693.5 1809.7 467.6 336.7 359.8 1304.9 166.5 243.9 264.6 176.1 333.0 1626.0 457.9 299.3 174.9 444.1 513.8 759.5 948.1 948.1 26.9 59.5 344.6 107.5 936.6 2224.9 524.9 194.1 199.5 389.0 34517. 4 106.6 176.4 560.4 1.1 1.6 297.3 1459.5 212.3 302.5 268.4 140.9 187.0 172.4 467.7 241.2 668.9 238.4 873.7

-9.6 -12.3 -12.4 -11.5 -5.7 -13.6 3.4 -14.2 -3.7 -9.5 1.9 -1.1 0.7 -6.5 0.3 10.7 11.1 -1.3 -2.2 -6.3 -3.5 -13.1 -0.1 -9.6 -11.9 1.8 1.4 -10.2 -13.0 -13.8 1.7 7.8 18.7 -18.2 8.0 -8.3 -33.5 -7.6 -20.0 -14.3 -1.7 -8.1 2.1 0.5 -

-6.9

-6.7 -0.1 -11.8 -19.4 -25.0 -2.4 0.2 -8.3 -1.2 -9.5 0.5 -9.5 -7.6 -0.9 -9.3 2.0 -4.5

129.86 131.00 216.26 362.50 256.00 141.13 1101 490.30 100.50 163.00 438.00 59.37 167.00 101.00 238.43 633.00 205.75 211.00 1180.01

3.46 3.94 4.90 3.36 1.51 0.78 3.18 1.34 2.48 1.17 2.49 3.18 8.45 3.29 1.98 1.92 0.89

143.8 140.2 241.6 411.6 295.4 189.3 1163.7 606.7 179.0 585.9 65.7 200.9 140.4 297.4 740.5 261.7 277.2 1765.1

-3.5 -2.8 1.4 -3.1 -6.2 2.0 2.1 -10.5 -4.2 -12.5 1.0 -4.6 -20.9 -13.2 0.4 -11.3 -12.2 -4.5

Conventional - Private Equity Price +/-Chg AbnPvtEq 86.13 0.25 Altamir € 10.38 -0.11 Dun Ent 338.00 -9.00 Electra 2775 32.00 ElectraPrf 147.75 F&C PvtEq 212.50 GraphEnt 558.00 -4.00 HVPE $ 12.40 HgCapital 1055 7.00 JPM Pvt Eq $ 0.81 0.00 JZ Capital 410.00 -0.50 LMS Capitl 76.25 Mithras 142.50 -1.50 NB PE Ptnr $ 11.35 0.03 Nthn Invs 424.00 3.00 Pantheon 1267 -1.00 PantheonR 1180 10.00 PrincssPE €♦ 6.92 -0.07 PE Hlding SFr 62.75 0.15 Riverstone 879.00 -3.50 StdLfEuPv 217.75 -1.25

52 Week High Low 88.48 72.89 11.99 9.43 445.00 332.84 2785 2315 148.50 141.00 233.00 197.00 619.00 536.10 12.49 10.12 1145.75 990.00 0.82 0.72 801.00 390.00 88.75 72.75 148.23 130.00 11.70 9.00 427.00 344.00 1270 1025 1180 1003.05 7.25 6.15 64.00 56.00 965.00 822.00 236.42 195.00

Yld 2.38 4.88 2.52 1.34 2.75 0.70 2.36 7.71 2.30

NAV 117.3 15.7 502.7 3179.7 138.8 269.0 683.8 15.2 1188.3 1.1 621.2 90.3 159.5 459.9 1507.4 1507.4 8.8 80.7 1022.7 257.4

Dis(-) or Pm -26.6 -33.9 -32.8 -12.7 6.4 -21.0 -18.4 -18.4 -11.2 -26.4 -34.0 -15.6 -10.7 -7.8 -15.9 -21.7 -21.4 -22.2 -14.1 -15.4

Conventional - Property ICs Price +/-Chg

52 Week High Low

Yld

NAV

Dis(-) or Pm

Direct Property

-0.75 -0.50 -0.50 -0.25 3.00 -9.50 0.50 -4.25 -0.63 -1.25 -2.00 -2.00 1.00 0.13 -1.75 -13.00

149.00 139.22 261.75 431.00 348.75 194.00 1287 626.64 412.00 187.70 604.99 68.00 202.23 133.80 288.50 757.00 240.00 248.00 1807.82

AseanaPr $ AXA Propty CustdnREIT♦ F&CComPrp♦ F&CUKRealE♦ IndMultiPr IVCOProp# InvistaERET Longbow PictonProp SLIPropInc UKComPrp

0.45 42.25 108.50 132.20 93.00 53.00 0.23 1.55 106.00 64.00 77.25 86.65

0.47 0.39 0.7 43.50 37.00 -0.50 115.50 103.50 -1.10 134.00 116.00 4.54 116.1 -1.75 96.25 81.00 5.38 85.9 73.00 48.00 0.49 0.11 -0.20 4.40 1.00 11.5 -0.50 106.50 100.50 -0.25 65.50 54.23 4.69 61.5 -0.50 80.25 68.75 5.90 72.2 -0.05 86.90 74.50 5.61 80.0

-35.7 13.9 8.3 -86.5 4.1 7.0 8.3

SchdrGlbRe♦ TR Prop♦

113.25 278.20

-0.63 115.56 29.00 3.71 127.2 -2.30 283.20 217.91 2.68 278.0

-11.0 0.1

VCTs

52 Week Price +/-Chg High Low 70.00 70.89 67.00 100.00 101.00 99.00 89.00 92.00 85.00 77.00 81.00 71.25 66.00 68.75 64.00

Property Securities

AlbionDev ..D Albion Ent AlbionTech AlbionVCT♦

Yld NAV 7.14 71.3 2.50 107.4 5.62 95.7 8.12 79.4 7.58 67.4

Dis(-) or Pm -1.8 -6.9 -7.0 -3.0 -2.1

Ordinary Income Shares 52 Week Price +/-Chg High Low Yld JPM I&C 93.00 -1.00 100.80 86.00 6.72 JupiterDv&G 4.75 6.00 3.75 15.16 M&GHI&Gt 60.00 70.90 56.00 Rghts&Icp 3945 -25.00 4900 3880 2.07

HR WO GRY 0% -11.6 -2.5 7.6 -40.3 -10.7 -10.7 -58.5 1.4

Income Shares

HR WO GRY 0% -52.7 7.1 -10.9 -6.7 18.1

Price +/-Chg 95.50 57.00 1010 -

52 Week High Low Yld 97.00 90.15 4.61 63.00 54.35 2.46 1252 895.00 2.97

Price +/-Chg 11.25 -0.13 4.10 -0.45

52 Week High Low 15.50 9.00 7.90 3.20

SP 3.1 9.4

Zero Dividend Preference Shares 52 Week Price +/-Chg High Low Abf Gd Inc 148.13 148.50 137.00 EcofinWatr 153.25 154.00 144.00 F&C PvtEq 151.50 0.25 151.65 146.25 JPM I&C 171.25 171.41 157.50 JupiterDv&G 108.38 109.80 95.00 JZ Capital 353.75 355.50 331.28 M&GHghIc 113.50 -0.38 114.70 103.50 UtilicoFn16 183.50 184.09 168.85 UtilicoFn18 136.50 137.00 116.50 UtilicoFn20 109.75 110.50 100.00

SP -30.6 -64.1 -15.4 -3.8 -14.0 -50.6 -17.6 -8.7

JPM In&Gr♦ M&GHghIc Rghts&I Capital Shares JPM Inc&Gr M&GHghIc

HR WO TAV 0% -1.1 3.1 8.4 HR WO TAV 0% 159.7 -90.4 160.7 152.1 192.1 121.4 369.8 -88.3 122.8 -91.2 192.8 -28.3 160.5 -10.9 154.9

Investment Companies - AIM AdFrntMkt CrysAmber GLI Finance♦ IndiaCap Infra India

52 Week Price +/-Chg High Low Yld NAV 60.13 -0.25 65.50 51.01 63.5 148.25 157.66 129.81 0.3 147.7 58.25 0.50 63.25 50.00 8.6 59.00 -0.25 61.68 32.41 68.6 12.00 19.00 9.50 42.7

Dis(-) or Pm -5.3 0.4 -14.0 -71.9

10.00 4.00 -0.25 240.70 173.00 5.50 3.75 126.70 52.50 2.10 0.90 -

291.8 6.2 1.5

-29.7 -25.3 -24.7

52 Week Price +/-Chg High Low Yld P/E 1512500 -10000.0 1550000 1400000 - 129.42 0 1167.5 -7.50 1260 1100 2.17 28.10 123.50 132.00 112.50 3.61 -26.33

Vol 000s 0.0

ISDX ArsenalFC ShephdNm Thwaites

3.2 0.0

Guide to FT Share Service For queries about the London Share Service pages e-mail [email protected]. All data is as of close of the previous business day. Company classifications are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE 100 constituent stocks are shown in bold. Closing prices are shown in pence unless otherwise indicated. Highs & lows are based on intra-day trading over a rolling 52 week period. Price/earnings ratios (PER) are based on latest annual reports and accounts and are updated with interim figures. PER is calculated using the company’s diluted earnings from continuing operations. Yields are based on closing price and on dividends paid in the last financial year and updated with interim figures. Yields are shown in net terms; dividends on UK companies are net of 10% tax, non-UK companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect capital changes where appropriate. Trading volumes are end of day aggregated totals, rounded to the nearest 1,000 shares. Net asset value per share (NAV) and split analytics are provided only as a guide. Discounts and premiums are calculated using the latest cum fair net asset value estimate and closing price. Discounts, premiums, gross redemption yield (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 nor guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any loss arising from the reliance on or use of the information. The London Share Service is a paid-for-print listing service and may not be fully representative of all LSE-listed companies. This service is available to all listed companies, subject to the Editor’s discretion. For new sales enquiries please email [email protected] or call 020 7873 4012.

Data provided by Morningstar

www.morningstar.co.uk

★

Friday 12 December 2014

29

FINANCIAL TIMES

MANAGED FUNDS SERVICE Fund

Bid

Offer

+/- Yield

ACPI Global UCITS Funds Plc

(IRL)

www.acpi.com Regulated

Fund

Bid

Artemis Income R Acc

329.84 349.31 -3.39 4.00

Offer

+/- Yield

Fund

Fund

Bid

Baring European Opportunities Fund Class A EUR Acc € 10.95

Bid

Offer -

-0.16 0.00

+/- Yield

Total Return B Acc

104.75

-

-0.87 1.22

EUR Accumulating Share Class

-1.54 1.57

Dodge & Cox Worldwide Funds plc-International Stock Fund

-1.88 4.75

USD Accumulating Share Class

$ 15.09

-

-0.22 0.00

397.71

-

-4.43 4.67

EUR Accumulating Share Class

€ 14.28

-

-0.29 0.00

47.41

-

0.30 2.29

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

American Fund USD Class

$ 77.02

-

-1.12 0.00

USD Accumulating Share Class

$ 18.38

-

-0.28 0.00

American Fund GBP Hedged

£ 41.96

-

-0.61 0.00

GBP Accumulating Share Class

£ 18.20

-

-0.33 0.00

Latin American Fund USD Class

$ 17.50

-

-0.42 0.00

EUR Accumulating Share Class

€ 19.17

-

-0.41 0.00

-0.01 0.00

Artemis Strategic Bond R M Inc

54.43 57.77 -0.01 4.09

Emerging Opportunities A GBP Inc H £ 19.38

-

-0.14 0.00

ACPI Global Fixed Income UCITS Fund USD A $ 149.06

-

0.07 0.00

Artemis Strategic Bond R Q Acc

82.02 87.05 -0.02 4.02

Glb Emerging Markets A GBP Inc H £ 19.42

-

-0.15 0.45

ACPI India Fixed Income UCITS Fund USD A3 $ 86.35

-

0.14 0.00

Artemis Strategic Bond R Q Inc

54.69 58.04 -0.01 4.10

Glb Resources A GBP Inc H

-

-0.30 0.33

ACPI International Bond UCITS Fund USD A $ 18.12

-

0.00 0.00

Artemis UK Growth R Acc

406.61 430.32 -4.54 0.82

High Yield Bond A GBP Hedged Inc H £

Artemis UK Smaller Cos R Acc

989.61 1061.86 -6.46 0.72

Hong Kong China A GBP Inc

Artemis UK Special Sits R Acc

493.93 524.55 -6.02 1.62

India Fund - Class A GBP Inc

£ 14.23

-

-0.19 0.00

Artemis US Abs Ret I Acc

101.06

-

-0.04

-

Latin America A USD Inc H

$ 35.20

-

-0.68 1.09

MENA A GBP Inc F *

£ 13.82

-

-0.29 1.08

ACPI Balanced UCITS Fund USD Retail $ 14.08

-

-0.06 0.00

Artemis US Equity I Acc

105.22

-

-1.62

-

ACPI Balanced UCITS Fund EUR Retail € 10.65

-

-0.05 0.00

Artemis US Select I Acc

104.88

-

-1.75

-

ACPI Balanced UCITS Fund GBP Retail £ 10.74

-

-0.05 0.00

Artemis US Smlr Cos I Acc

105.89

-

-1.95

-

ACPI Balanced UCITS Fund USD Institutional $ 10.00

-

-

-

Artemis US Ex Alpha I Acc

106.97

-

-1.48

-

ACPI Balanced UCITS Fund EUR Institutional € 10.00

-

-

-

ACPI Balanced UCITS Fund GBP Institutional £ 10.00

-

-

-

ACPI Focused Equity UCITS Fund $ 12.26

-

£ 45.08

£ 12.13

-

-0.04 6.49

-

-5.52 0.62

Baring International Fd Mgrs (Ireland)

(IRL)

Regulated China A-Share A GBP Inc

Artemis Fund Managers Ltd

6.76

£ 570.84

£

5.70

-

0.14 0.00

(CYM)

Regulated Artemis Gbl Hedge Fd Ltd GBP

£ 56.05

-

0.05

-

Artemis Gbl Hedge Fd Ltd EUR

€ 52.38

-

0.01

-

Artemis Gbl Hedge Fd Ltd USD

$ 56.42

-

0.03

-

Artemis Pan-Euro Hdg EUR

€ 179.92

-

-7.17

-

Artemis Pan-Euro Hdg GBP

£ 198.23

-

-7.60

-

Artemis Pan-Euro Hdg USD

$ 187.05

-

-7.08

-

Barings (Luxembourg)

(LUX)

FCA Recognised Russia A GBP Inc F

£ 23.22

-

-0.10 1.17

Barmac Asset Management Ltd

(UK) 2 The Boulevard, City West One Office Park Leeds LS12 6NT Authorised Corporate Director - Capita Financial Managers Dealing: 0845 922 0044 Authorised Inv Funds

Capita Asset Services

(UK)

40 Dukes Place, London EC3A 7NH Order Desk 08459 220044 Switchboard 0870 607 2555 Authorised Inv Funds

Cheyne Capital Management (UK) LLP

(IRL)

Regulated Cheyne Convertibles Absolute Return Fund € 1317.34

-

-7.03 0.00 -0.16 0.00

CF Heartwood Cautious Income B Inc

111.32

-

-0.32 2.16

Cheyne Global Credit Fund

€ 119.86

-

-0.25 0.00

CF Heartwood Growth B Acc

141.88

-

-0.95 0.84

CF Heartwood Balanced Income B Inc

113.72

-

-0.54 2.40

Cheyne Capital Management (UK) LLP

Cash Fund

£

1.00

1.00 0.00 0.11

CF Heartwood Balanced B Acc

124.64

-

-0.61 0.69

Other International Funds

Gross Accum Cash

£

1.28

1.28 0.00 0.00

-

-0.15 0.01

Cheyne European Event Driven Fund € 143.23

-

2.57 0.00

MoneyBuilder Cash ISA

£

1.00

1.00 0.00 0.11

266.89

-

-1.87 1.68

Cheyne European High Yield Fund € 138.40

-

0.14 0.00

MoneyBuilder Global

£

2.50

2.50 -0.01 0.19

USD Inst. Accumulation Shares

CF Richmond Core

180.98

-

-3.24 0.00

Cheyne Long/Short Credit Fund

$ 211.79

-

-2.65

OEIC Funds

CF Seneca Diversified Growth A ACC

205.57

-

-1.57 1.00

Cheyne Malacca Asia Equity Fund Class A $ 1500.81

-

-29.32 0.00

CF Seneca Diversified Growth B ACC

120.87

-

-0.92 1.80

Cheyne Multi Strategy Liquid Fund $ 124.50

-

-1.11

CF Seneca Diversified Growth N ACC

119.96

-

-0.92 1.53

Cheyne Real Estate Credit Holdings Fund £ 138.46

-

0.52 0.00

-

CF Seneca Diversified Income A INC

88.39

-

-0.36 5.43

Cheyne Real Estate Debt Fund Class A1 £ 128.58

-

0.45 0.00

CF Seneca Diversified Income B INC

104.40

-

-0.42 5.95

Cheyne Total Return Credit Fund - December 2017 Class $ 197.03

-

4.40 0.00

DGT - Consumer £ I Class

CF Seneca Diversified Income N INC

103.56

-

-0.41 5.96

Cheyne Total Return Credit Fund December 2019 $ 127.97

-

0.00

DGT - Consumer £ R Class

£ 125.11

DGT - Strategic £ I Class

£

1.13

DGT - Strategic £ R Class

£

1.14

-

-

-

Investment Adviser - DSM Capital Partners

Custodian Ser. 4

476.20 501.20 -1.00

-

Equity Ser. 4

543.60 572.20 -3.80

-

European Ser 4

564.80 594.50 -2.20

-

Fixed Int. Ser. 4

885.30 931.90 2.50

-

Artisan Emerging Markets I USD Acc $

7.60

-

-0.09 0.00

CF Lacomp World

Intl Ser. 4

425.40 447.80 -3.60

-

Artisan Global Equity Fund Class I USD Acc $ 14.35

-

-0.10

Investment Adviser - Morant Wright Management Limited

Single Country Equity Sub Funds

Japan Ser 4

339.20 357.10 0.00

-

Artisan Global Opportunities I USD Acc $ 11.37

-

-0.11 0.00

Regulated

CF Morant Wright Japan A

233.05

-

-0.30 0.00

CMI Japan Enhanced Equity F

¥ 4010.55

-

-29.62 0.86

Man. Ser. 4

1618.40 1703.60 -8.00

-

Artisan Global Value Fund Class I USD Acc $ 16.12

-

-0.16 0.00

BlackRock UK Property

0.29 3.95

CF Morant Wright Japan A Inc

229.62

-

-0.29 0.00

CMI UK Equity

£ 11.62

-

-0.16 2.16

8.49 0.00

CF Morant Wright Japan B

246.77

-

-0.31 0.46

CMI US Enhanced Equity F

$ 77.30

-

-1.29 0.56

CF Morant Wright Japan B Inc

233.94

-

-0.29 0.48

Index Tracking Sub Funds

CF Morant Wright Nippon Yield ACC A

237.35

-

-0.13 2.29

Euro Equity Index Tracking

CF Morant Wright Nippon Yield ACC B

244.93

-

-0.12 2.29

Japan Index Tracking

¥ 738.62

-

-5.68 0.94

CF Morant Wright Nippon Yield Fund A Inc

210.78

-

-0.11 2.34

UK Eqty Index Tracking

£ 14.94

-

-0.20 2.96

CF Morant Wright Nippon Yield Fund B Inc

217.57

-

-0.11 2.33

US Eqty Index Tracking

$ 56.84

-

-0.94 0.78

£

1.48

-

1035.90 1090.40 0.40

-

Custodian Ser 5

458.30 482.50 -1.00

-

International Ser 5

409.40 431.00 -3.50

-

Managed Ser 5

1557.80 1639.80 -7.70

-

2 rue Albert Borschette L-1246 Luxembourg FCA Recognised -

-1.17 11.38

-

-1.25 1.10

Ashmore Sicav

Money Ser 5

513.10 540.10 0.00

-

Property Ser 5

997.10 1049.60 0.40

-

Ashmore SICAV Emerging Market Frontier Equity Fund $ 160.56

1837.30 1934.00 -29.10

-

The Westchester

$ 26.02

-

-0.53 0.00

Retail Income 2

108.57

-

-0.10 0.00

The Westchester Class 1 GBP Acc £ 18.00

-

-0.38 0.00

-

-0.38 0.00

The Castleton Growth Fund Ret Acc

F

106.75

-

-0.10 0.00

The Westchester Class 2 GBP Acc £ 18.02

The Castleton Growth Fund Ret Inc

F

107.16

-

-0.11 0.00

Investment Adviser Lacomp Plc

$

5.11

-

5.39 -0.10 0.00

-0.73 9.08

Formerly Hill Samuel Life Assurance Ltd 100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603

BlueBay Asset Management LLP

(LUX)

Regulated

-

-0.03 0.38

European

£ 15.72

-

-0.04 1.61

DX EVOLUTION PCC LIMITED - DXE (US$) FUND $ 111.73 111.73 0.00 0.00

Frk Mutual Shares A Inc

£

1.83

-

-0.03 0.39

European Opportunities

£

3.47

-

-0.02 0.38

Frk Strat Bond A Acc

£

1.44

-

0.00 5.22

Extra Income

£

0.27

-

0.00 3.87

Frk Strat Bond A Inc

£

1.05

-

0.00 5.34

Extra Income - Gross

£

0.27

-

0.00 3.87

Frk UK Blue Chip A Inc

£

4.25

-

-0.06 2.07 -0.02 4.16

Frk UK Mgrs' Focus A Acc

£

1.86

-

-0.03 0.62

Global High Yield Fund - A Gross Acc £ 11.83

-

-0.05 4.59

Frk UK Mid Cap A Inc

£

4.56

-

-0.08 0.48

Global High Yield Fund - A Gross Inc £ 10.33

-

-0.04 4.71

Frk UK Opport A Inc

£

3.22

-

-0.04 2.09

Global High Yield Fund - A Net Acc £ 11.51

-

-0.05 4.65

Frk UK Smll Comp A Inc

£

7.42

-

-0.09 0.07

Dragon Capital Group

Global High Yield Fund - A Net Inc £ 10.32

-

-0.05 4.70

Frk US Opport A Acc

£

2.52

-

-0.05 0.00

c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Fund information, dealing and administration: [email protected] Other International Funds

Global Property - Acc

£

1.44

-

-0.01 1.36

Tem Gbl Emg Mkts A Acc

£

1.84

-

-0.03 1.44

0.01 0.87

Global Property W Inc

£

1.20

-

0.00

Tem Glb TotRet Bond A Acc

£

1.78

-

-0.01 2.94

Global Special Sits

£ 23.67

-

-0.34 0.04

Tem Glb TotRet Bond A H3 Acc

£

1.25

-

-0.01 3.03

Index Emerging Markets P-Acc

£

1.06

-

-0.01

-

Tem Glb TotRet Bond A H3 Inc

£

1.19

-

-0.01 3.12

Index Europe ex UK P-Acc

£

1.00

-

-0.01

-

Tem Glb TotRet Bond A Inc

£

1.41

-

-0.01 2.90

Index Japan P-Acc

£

1.02

-

0.01

-

Tem Growth A Acc

£

8.26

-

-0.10 0.75

-

Tem Growth A Inc

£

5.60

-

-0.07 0.76

-0.27 2.09

0.04 2.13

-

0.05 1.56

BlueBay Em Mkt Sel Bd B - USD $ 157.47

-

-0.85 0.00

BlueBay Emg Mkt Loc Ccy Bd B - USD $ 155.76

-

-0.71 0.00

CMI Euro Currency Reserve

€ 24.98

-

0.00 0.65

BlueBay Gbl Convert Bd I - USD

$ 188.81

-

-0.66 0.00

CMI Stlg Currency Reserve

£

-

0.00 0.96

BlueBay Gbl High Yield Bd B

$ 129.64

-

-0.61 0.00

BlueBay High Yield B - EUR

€ 330.35

-

0.47 0.00

BlueBay High Yield Corp Bd B

€ 139.81

-

0.15 0.00

Aspect Diversified EUR

€ 223.88

-

-1.51

BlueBay Inv Grd Libor Fd B

€ 125.91

-

-0.14 0.00

Managed (Life)

1552.00 1633.70 -6.70

-

Aspect Diversified GBP

£ 114.01

-

-0.79 0.00

BlueBay Struct.Fds: High Inc Loan Fd € 190.18

-

-0.03 0.00

Managed Growth (Life)

489.20 514.90 -3.10

-

Aspect Diversified CHF

SFr 107.51

-

-0.72 0.00

Managed (Pensions)

6131.60 6454.30 -26.50

-

Aspect Diversified Trends USD

$ 111.68

-

-0.85 0.00

Managed Growth (Pensions)

597.00 628.50 -3.80

-

Aspect Diversified Trends EUR

€ 111.32

-

-0.85 0.00

Aspect Diversified Trends GBP

£ 115.17

-

-0.88 0.00

Atlantas Sicav

-

American Dynamic

$ 3344.45 $ 3181.71

American One Bond Global

BONHOTE Other International Funds Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6822.00

-

-48.00 2.46

Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9947.00

-

71.00 0.85

(LUX)

Regulated

€ 1271.68

-

17.50 0.00 3.97 0.00 7.17 0.00

Eurocroissance

€ 774.38

-

6.44 0.00

Far East

$ 685.71

-

-17.49 0.00

Braemar Group PCC Limited

(GSY)

Regulated UK Agricultural Class A

£

1.25

-

-0.01 0.00

UK Agricultural Class B

£

1.37

-

0.00 0.00

Student Accom Class B

£

0.72

-

-0.28 0.00

CAF Financial Solutions BLME Asset Management

(LUX)

BLME Sharia'a Umbrella Fund SICAV SIF Regulated $ Income Fund - Share Class A Acc $ 1136.17 $ Income Fund - Share Class B Acc $ 1155.29

(UK)

Kings Hill, West Malling, Kent 03000 123 222 Property & Other UK Unit Trusts CAF UK Equitrack Inc Fd

-

0.15 0.00 0.16 0.00

69.38 69.38 -0.96 3.48

CAF UK Equitrack Acc Fd FP CAF Alternative Strategies A Class Acc

95.07 95.07 -1.32 3.40 109.44

-

-0.21 0.47

$ Income Fund - Share Class C Acc $ 1006.43

-

0.13 0.00

FP CAF Alternative Strategies A Class Inc

109.11

-

-0.21 0.34

$ Income Fund - Share Class D Dis $ 1006.70

-

0.13

FP CAF Fixed Interest A class Acc

112.59

-

-0.09 2.80

$ Income Fund - Share Class G Acc £ 1074.61

-

0.18 0.00

FP CAF Fixed Interest A class Inc

101.51

-

-0.09 2.85

$ Income Fund - Share Class M Acc € 1014.98

-

0.10 0.00

FP CAF Fixed Interest B class Acc

113.02

-

-0.10 2.80

$ Income Fund - Share Class V DisA$ 1027.55

-

0.45

FP CAF Fixed Interest B class Inc

101.78

-

-0.08 2.85

Gl Sukuk Fund - Share Class A Acc $ 1210.30

-

-

-

0.02 0.00

Gl Sukuk Fund - Share class B Acc £ 1073.34 1073.34 0.06 0.00

£

-

-0.21 0.00

FP CAF International Equity A Class Acc

136.29

-

-1.01 0.71

FP CAF International Equity A Class Inc

132.98

-

-0.99 0.72

FP CAF UK Equity A Class Acc

141.31

-

-0.91 2.22

FP CAF UK Equity A Class Inc

131.15

-

-0.84 2.25

Capital International funds services

(LUX)

6, route de Trèves, L-2633 Senningerberg,Luxembourg Capital International funds are part of The Capital Group Companies www.thecapitalgroup.com FCA Recognised Growth Funds Cap Group All Ctry Eq B

SFr 21.79

-

-0.16 0.00

Cap Group All Ctry Eq B

€ 18.13

-

-0.12 0.00

Cap Group All Ctry Eq B

$ 22.48

-

-0.16 0.00

Cap Group All Ctry Eq BD

£ 14.27

-

-0.11 0.00

Currency Reserve Sub Funds 4.93

-

0.00 0.50

Ecclesiastical Inv Mgt Ltd (1200)F

-

-0.01 0.00

PO Box 3733, Swindon, SN4 4BG, 0845 604 4056 Authorised Inv Funds

Cohen & Steers SICAV

(LUX)

Regulated € 18.9618

-

Europ.RealEstate Sec. IX

€ 24.9585

-

0.0635 0.00

Gbl RealEstate Sec. I

$ 10.7798

-

-0.0336 1.34

Gbl RealEstate Sec. IX

$ 12.5716

-

-0.0392 0.00

European Real Estate Securities

0.0483 1.56

Amity International Cls A Inc

212.40

-

-1.40 1.72

Multi Asset Alloc Strategic A-Acc £

1.17

-

0.00 0.27

0.03 0.00

Frk Euro Gov. Bond

€ 11.17

-

-0.01 1.05

Amity International Cls B Inc

214.70

-

-1.40 2.47

Multi Asset Alloc Def - Gross A

£

1.11

-

0.00 0.31

Cap Group AsiaP ex Jp Eq B

SFr 17.31

-

-0.16 0.00

Frk Euro High Yield

€

6.52

-

-0.01 4.62

Amity Sterling Bond Fund A Inc

109.50

-

0.10 5.36

Multi Asset Alloc Def - Net A

£

1.11

-

0.00 0.20

Cap Group AsiaP ex Jp Eq B

€ 14.41

-

-0.12 0.00

Frk Euro Liquid Reserve

€

4.37

-

0.00 0.00

0.10 5.34

Multi Asset Alloc Growth A

£

1.21

-

-0.01 0.00

Cap Group AsiaP ex Jp Eq B

$ 17.85

-

-0.18 0.00

Frk Euro Short Dur Bond Fd

€ 10.16

-

0.00

Multi Asset Defensive

£

1.21

-

0.01 0.37

Cap Group Asia Pex Jp Eq BD

£ 10.80

-

-0.10 0.39

Frk Europ Corp Bond Fd

€ 11.39

-

-0.01 1.67

Cap Group Em Mkts Fund BD

£ 50.41

-

-0.27 0.00

Comgest SA

Cap Group Em Mkts Fund B

SFr 80.24

-

-0.29 0.00

Cap Group Em Mkts Fund B

€ 66.69

-

-0.31 0.00

17 square Edouard VII - 75009 Paris, www.comgest.com FCA Recognised

Cap Group Em Mkts Fund B

$ 82.81

-

-0.42 0.00

Cap Group Glb Growth Inc BD

£ 11.61

-

-0.05 0.63

Cap Group Glb Growth Inc B

€ 15.59

-

-0.04 0.00

Comgest SA

Cap Group Glb Growth Inc B

SFr 18.73

-

-0.07 0.00

Cap Group Glb Growth Inc B

$ 19.32

-

-0.08 0.00

17 square Edouard VII - 75009 Paris FCA Recognised

Growth and Income Funds

Cap Group Eur Growth Inc B

€ 24.39

-

-0.07 0.00

Cap Group Eur Growth Inc B

SFr 29.31

-

-0.11 0.00

Cap Group Eur Growth Inc B

$ 30.23

-

-0.13 0.00

Cap Group Eur Growth Inc BD

£ 17.33

-

-0.07 1.28

Cap Group US Growth Inc B

€ 20.13

-

-0.02 0.00

Cap Group US Growth Inc B

SFr 24.19

-

-0.04 0.00

Cap Group US Growth Inc B

$ 24.95

-

-0.05 0.00

Cap Group US Growth Inc BD

£ 15.75

-

-0.02 0.03

Amity Sterling Bond Fund B Inc

Comgest Asia F Comgest Europe F

-

-20.31 0.00

SFr 5682.91

-

-13.18 0.00

CF Eclectica Agriculture A EUR Acc

(FRA)

-

-0.15 0.00

Comgest AM International Ltd

(IRL)

-

-0.89 0.50

Bond World Corporate C

$ 151.96

-

0.12 0.00

CCLA Investment Management Ltd

Allz Sterling Total Return Fund A Inc

149.93

-

0.53 3.10

Bond World Emerging P Cap*

$ 24.47

-

-0.22 0.00

Allz Sterling Total Return Fund C Inc

150.61

-

0.53 3.69

Bond World Emerging Advanced C $ 96.57

-

-0.62 0.00

Allz Total Return Asian A Acc

640.89

-

-4.18 1.31

Bond World Emerging Local P Cap* $ 82.58

-

-0.51 0.00

Senator House 85 Queen Victoria Street London EC4V 4ET Property & Other UK Unit Trusts CBF Church of England Funds

Allz Total Return Asian C Inc

590.43

-

-3.83 1.20

Bond World High Yield P Cap*

€ 103.68

-

-0.59 0.00

0.55 3.85

Bond World Inflation-Ld P Cap*

€ 116.05

-

-0.09 0.00

Global Equity Inc

157.27 159.01 0.76 4.26

(UK)

1.66

-

-0.03 0.00

CF Eclectica Agriculture C EUR Acc

€

1.38

-

-0.03 0.25

CF Eclectica Agriculture C USD Acc

109.72

-

-1.55 0.23

1.70

-

-0.03 0.27

$

Edinburgh Partners Limited

-0.08 4.83

1.39

-

-0.01 1.04

Tem Global Income

$ 14.11

-

-0.12 1.61

UK Growth

£

3.31

-

-0.05 0.05

Global Opportunities A GBP

£

1.03

-

-0.01 0.58

Tem Global Smaller Cos

$ 33.15

-

-0.32 0.00

UK Smaller Companies

£

1.84

-

-0.01 0.26

Pan European Opportunities I EUR €

1.50

-

0.00

Tem Global Total Return

$ 17.75

-

-0.18 3.52

WealthBuilder A Acc

£

0.97

-

-0.01 0.64

Tem Latin America

$ 51.80

-

-1.28 0.76

-0.14 0.00

Practical Investment Inc

203.22 208.19 -1.80 3.80

-

-0.12 0.00

Practical Investment Acc

957.58 981.01 -8.51 3.70

Cap Group Em Mkts Debt B

$ 13.67

-

-0.16 0.00

Cap Group Em Mkts Debt Bd

£

7.43

-

-0.10 4.58

Cap Group Em Mk LocCur Dbt B

$ 10.29

-

-0.10 0.00

SFr 19.02

-

-0.01 0.00

31/32 St James's Street, London, SW1A 1HD FCA Recognised

Coupland Cardiff Funds Plc

-

Fidelity PathFinder

(IRL)

Cap Group Euro Bond B

£

9.75

-

-0.01 1.22

CC Asia Alpha Fd - Cls A Euro

€ 12.40 12.40 0.03 0.00

Cap Group Euro Bond B

$ 19.62

-

-0.02 0.00

CC Asia Alpha Fd - Cls B USD

$ 12.17 12.17 0.02 0.00

Cap Group Euro Bond BD

€ 15.83

-

0.00 0.00

CC Asia Alpha Fd - Cls C GBP

£ 12.02 12.02 0.03 0.00

Cap Group Glb H Inc Opp B

SFr 32.45

-

-0.20 0.00

CC Asia Alpha Fd - Cls I USD

$

Cap Group Glb H Inc Opp B

€ 27.01

-

-0.13 0.00

CC Asian Evolution Fd. Cls A USD $ 14.82 14.82 -0.26 0.00

EFG Hermes

Cap Group Glb H Inc Opp B

$ 33.47

-

-0.22 0.00

CC Asian Evolution Fd. Cls B GBP £ 13.95 13.95 -0.25 0.00

DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Contact: Telephone + 971 4 363 4029 Email [email protected] Other International Funds

9.61

9.61 0.02 0.00

£ 12.12

-

-0.07 5.14

CC Asian Evolution Fund - Cls C USD Acc $ 16.65 16.65 -0.29 0.00

Cap Group Global Bond B

SFr 18.80

-

0.00 0.00

CC Japan Alpha Fd - Cls A Euro

€

€ 15.65

-

0.02 0.00

CC Japan Alpha Fd - Cls B GBP

£ 10.89 10.89 -0.17 0.00 ¥ 1068.43 1068.43 -16.41 0.00

9.99

9.99 -0.15 0.00

CC Japan Inc & Grwth Fd - GBP Founder Acc £ 15.87 15.87 -0.22 0.00

The EFG-Hermes Egypt Fund

$ 29.93

-

Middle East & Developing Africa Fund (Final) $ 19.81

-

Saudi Arabia Equity Fund

-

SR 13.30

Global Equity Inc

146.67 148.29 -2.41 3.97

-0.19 0.00

Global Equity Acc

208.00 210.30 -3.41

Bd. Euro Corporate AE Class - R - EUR € 18.73

-

-0.02 0.00

Bd. Global AU Class - R - USD

-

-0.07

$ 26.91

-

Eq. Emerging Europe AE Class - R - EUR € 26.83

-

-0.24 0.00

Eq. Emerging World AU Class - R - USD $ 91.66

-

-0.70 0.00

Eq. Greater China AU Class - R - USD $ 605.02

-

1.37 0.00

Eq. Latin America AU Class - R - USD $ 456.65

-

-11.20 0.00

Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.74

-

-0.16 0.00

The Antares European Fund Limited Other International AEF Ltd Usd (Est)

$ 583.53

-

3.79

-

AEF Ltd Eur (Est)

€ 585.00

-

3.90 0.00

(LUX) 22 Conduit Street, Mayfair, London W1S 2XR +44(0)20 7491 1901 FCA Recognised The Arbiter Global Emerging Markets Fund Class A USD $ 107.78

-

-0.12 0.00

Arisaig Partners Other International Funds

Tel: +41 22 360 94 00 www.caceis.ch Other International Funds

$ 1621.9448

-

24.1076

-

CATCo Re Fund Ltd Series B

$ 1665.2871

-

25.9697

-

-

0.00 0.00

Crediinvest SICAV Money Market Usd A $ 10.02

-

0.00 0.00

Crediinvest SICAV Fixed Income Eur € 10.86

-

-0.02 0.00

Cavendish Opportunities Fund B Class

955.00

-

-8.40 1.46

Cavendish Opportunities Fund A Class

950.80

-

-8.40 0.58

Cavendish Opportunities Fund C Acc

979.50

-

-8.60 1.20

Cavendish Worldwide Fund B Class

295.10

-

-3.60 0.97

Cavendish Worldwide Fund A Class

295.00

-

-3.60 0.16

Cavendish Worldwide Fund C Acc

300.90

-

-3.70 1.40

Cavendish AIM Fund B Class

149.90

-

-0.90 0.40

Cavendish AIM Fund A Class

146.30

-

-0.80 0.00

Cavendish Asia Pacific Fund B Class

161.00

-

-1.10 1.50

Cavendish Asia Pacific Fund A Class

160.90

-

-1.10 0.68

Cavendish Asia Pacific Fund C Acc

165.50

-

-1.20 1.48

Cavendish European Fund B Class

131.30

-

-1.30 1.31

Cavendish European Fund A Class

130.30

-

-1.30 0.38

Dantrust Management (Guernsey) Ltd

(GSY)

NAV

€ 428.03

-

Equinox Russian Opportunities Fund Limited $ 93.85

-

Euronova Asset Management UK LLP

Frk India

$ 31.95

-

-0.01 0.00

Frk Japan Fd

¥ 783.01

-

-31.38 0.00

Frk K2 Alt Strat Fd

$ 10.24

-

-0.04

(UK)

Fidelity PathFinder Freedom 4 Acc (clean) £

1.06

-

-0.01

-

Frk MENA Fund

$

6.59

-

-0.07 0.00

Fidelity PathFinder Freedom 5 Acc (clean) £

1.10

-

-0.01

-

Frk Mutual Beacon

$ 69.94

-

-1.05 0.00

Fidelity PathFinder Income 1 Income (clean) £

1.04

-

0.00

-

Frk Mutual Euroland Fd

€ 16.04

-

-0.15 0.00

Fidelity PathFinder Income 1 Gross Income (clean) £

1.04

-

0.00

-

Frk Mutual European EUR

€ 22.27

-

-0.20 0.00

Fidelity PathFinder Income 2 Income (clean) £

1.04

-

0.00

-

Frk Mutual Gbl Disc

$ 17.39

-

-0.21 0.00

Fidelity PathFinder Income 2 gross £

1.06

-

0.00 4.47

Frk Natural Resources Fd F

$

7.26

-

-0.27 0.00

Fidelity PathFinder Income 2 Gross Income (clean) £

1.04

-

0.00

Frk Real Return Fd F

$ 10.54

-

-0.02 0.00

Fidelity PathFinder Income 3 Income (clean) £

1.04

-

-0.01 1.89

-1.60 2.14

4.04 0.00

(GSY)

-9.18 0.00

(CYM)

-

0.09 0.00

Reduced Duration UK Corporate Bond Inc £ 10.13

-

-0.03 3.34

Reduced Duration UK Corp Bond Gross Inc £ 10.15

-

-0.02 3.33

Select Emerging Markets Equities £

1.23

-

-0.01 0.97

Select European Eqts

£

1.73

-

0.01 1.88

Select Global Equities

£

2.85

-

-0.04 0.98

South East Asia

(LUX)

Regulated

£

3.52

-

-0.03 0.71

Davis Value A

$ 39.82

-

-0.56 0.00

Sterling Core Plus Bond Gr Accum £

2.01

-

0.02 3.69

Davis Global A

$ 28.86

-

-0.46 0.00

Sterling Core Plus Bond Inc

£

1.35

-

0.01 3.83

UK

£

3.29

-

-0.03 1.97

UK Aggreg Bond Gr Accum

£

1.78

-

0.01 3.08

Discretionary Unit Fund Mngrs (1000)F

(UK)

1 Poultry, London EC2R 8JR 020 7 415 4130 Authorised Inv Funds

Eurobank Fund Management Company (Luxembourg) S.A. (LUX)

Disc Inc

1350.00 1391.70 19.40 0.00

Regulated

Do Accum

5017.60 5172.80 71.90 0.00

(LF) Absolute Return €

€

-0.01 0.00

-0.07 0.00

-

-0.03 0.00

-0.05 0.00

European Growth Inc

990.10 1044.00 -9.90 1.07

Cavendish Technology Fund B Class

254.40

-

-4.10 0.10

(LF) Eq Emerging Europe €

€

0.79

-

0.00 0.00

-0.06

German Growth Acc GBP

552.20

-

-4.90 0.76

Cavendish Technology Fund A Class

243.40

-

-3.90 0.00

(LF) Eq Flexi Style Greece €

€

1.30

-

-0.02 0.00

German Growth Inc GBP

509.70

-

-4.50 0.56

Cavendish UK Balanced Income Fund B Class

134.80

-

-0.80 5.02

(LF) Global Bond Fd €

€ 11.73

-

-0.01 0.00

Global Bond Inc

118.80 124.80 0.40 1.40

Cavendish UK Balanced Income A Class

128.90

-

-0.90 5.24

(LF) Global Equities €

€

1.05

-

-0.02 0.00

Global Growth Inc

359.90 379.10 -4.90 0.00

Cavendish UK Select Fund B Class

148.50

-

-2.70 1.80

(LF) Eq Mena Fund €

€ 14.32

-

0.03 0.00

Japan Growth Acc

127.20 134.00 0.40 0.00

Asia Pacific B Acc

870.79

-

-8.40 0.97

Cavendish UK Select Fund A Class

148.40

-

-2.70 0.93

(LF) Greek Government Bond €

€ 15.60

-

-0.45 0.00

Korea Acc

243.30 257.90 -3.90 0.00

Balanced B Acc

141.56

-

-1.02 0.00

(LF) Income Plus $

$

1.22

-

0.00 0.00

(LF) Greek Corporate Bond €

€ 11.49

-

-0.20 0.00

(LF) FOF Balanced Blend €

€

1.34

-

-0.01 0.00

(LF) FOF Equity Blend €

€

1.19

-

0.00 0.00

(LF) FOF Gl Emerging Mkts €

€

0.83

-

-0.01 0.00

57 St. James's Street, London SW1A 1LD 0800 092 2051 Authorised Inv Funds Artemis Capital R ACC

1154.41 1219.78 -14.16 1.53

Artemis European Growth R Acc

235.09 248.08 -1.44 3.63

Targeted Return Fund Acc

140.40 141.40 -0.70 3.10

Targeted Return Fund Inc

111.40 112.20 -0.50 3.17

Artemis European Opps R Acc

69.65 73.50 -0.20 1.37

Artemis Global Energy R Acc

26.10 27.76 -1.22 0.00

Artemis Global Growth R Acc

168.99 178.38 -1.52 0.79

Artemis Global Income R Acc

89.15 94.16 -0.96 3.96

ASEAN Frontiers A GBP Inc

Artemis Global Income R Inc

74.53 78.72 -0.80 4.08

Asia Growth A GBP Inc H

£ 42.85

Artemis Global select R Acc

65.50 69.13 -0.49 0.00

Australia A GBP Inc

£ 70.67

Artemis High Income R Inc

79.59 84.72 -0.11 5.60

Baring China Bond Fund

$ 10.26

-

Artemis Income R Inc

200.79 212.64 -2.06 4.11

(IRL) Baring International Fd Mgrs (Ireland) Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 FCA Recognised £ 119.13

Baring Emerging Markets Corporate Debt Fund $

9.43

Global Equity Income B Inc

118.88

-

-1.23 4.00

99.23

-

-0.41 5.01

Global High Yield Bond B Inc Global Infrastructure B Acc

111.95

-

-1.56 1.71

Global Resource B Acc

84.75

-

-2.98 0.06

Japan B Acc

47.04

-

-0.02 0.00

Portfolio III B Acc

106.21

-

-0.05 1.80

-0.70 0.94

Portfolio IV B Acc

106.03

-

-0.24 2.06

-

-0.49 0.00

Portfolio V B Acc

105.81

-

-0.57 1.09

-

-0.87 2.27

Portfolio VI B Acc

105.65

-

-0.77 1.11

-0.02 0.00

Portfolio VII B Acc

103.42

-

-0.93 0.87

-0.01 0.00

North American B Acc

829.68

-

-12.21 0.46

Strategic Return B Acc

102.07

-

-0.17

-

-

-

Cedar Rock Capital Fd Plc

$ 354.98

-

11.02 0.00

Cedar Rock Capital Fd Plc

£ 355.85

-

10.73 0.00

Cedar Rock Capital Fd Plc

€ 296.42

-

9.50 0.00

Charles Schwab Worldwide Funds Plc

(IRL)

Regulated Schwab USD Liquid Assets Fd

$

1.00

-

0.00 0.01

0.14 2.90

Smaller Cos Cls Four Shares (Est) € 13.76

RON 15.99

0.40 2.23

-

-0.03 3.33

(LF) Cash Fund (RON)

-5.25 1.52

£ 11.18

-

-7.00 0.66

-

Long Bond Fund Gross Inc

Reduced Duration UK Corporate Bond Gross £ 10.61

-

2358.00

-

0.01 2.84

0.07

Europe Select Inc GBP

95.75

0.01 2.91

-

-

0.01 0.00

576.12

-

0.80

Smaller Cos Cls Three Shares (Est) € 10.58

-0.01 0.00

Global Equity B Acc

0.50

£

-0.03 3.34

-

Global Bond B Inc

£

Long Bond Gross

-0.02 2.08

-

239.20 252.90 -3.20 1.35

Long Bond

-

1.40

Charity Fund 0800 032 6347 (charity enquiries)

0.00 0.80

Reduced Duration UK Corporate Bond £ 10.50

(LF) Cash Fund €

UK Growth Inc

-

0.11 0.00

(LF) Balanced - Active Fund (RON)RON 15.88

(UK)

1.87

-

-2.80 0.00

Artemis Fund Managers Ltd (1200)F

£

Smaller Cos Cls Two Shares (Est) € 21.32

-2.80 0.59

(IRL)

0.12 0.58

Japan

-0.03 1.91

-

Regulated

0.03 0.58

-

-

-

Cedar Rock Capital Limited

-

-

kr 459.40 459.50 -1.10 0.00

DAVIS Funds SICAV

3.15

Index-Linked Bond Fund Gross Inc £ 12.41

2.53

Regulated Dantrust II Limited

-

3.59

179.80

1.02 3.99

-

Institutional OEIC Funds

184.50

-0.64 0.00

0.00 0.00 -0.09 0.00

-

Cavendish North American Fund A Class

-

-

-

Cavendish North American Fund B Class

-

$ 28.75

-0.01

-6.00 0.00

237.99

Frk Global Sml Mid Cap Gth

-

-6.10 0.00

210.62

-

1.06

-

European B Acc

-0.34 0.00

-0.01

Fidelity PathFinder Freedom 3 Acc (clean) £

-

Corporate Bond B Inc

-

-

-

616.70

-0.80 0.74

$ 24.62

1.09

£

-

-0.80 0.73

Frk Global Gth & Val

Fidelity PathFinder Focussed 5 Acc (clean) £

£

1.31

-

-

Pan European

1.00 0.00

-

-0.21 0.00

-0.01

Pacific (Ex Japan)

1.00 0.87

148.70

-

-

0.19 0.00

-

154.00

$ 14.16

1.10

-

-

Multi Asset A Acc ... C

-0.10 0.00

Frk Global Growth

Fidelity PathFinder Focussed 4 Acc (clean) £

Smaller Cos Cls One Shares (Est) € 29.87

141.50

Multi Asset A Inc ... C

-

0.00

Regulated

142.10

(UK) 1-6 Lombard St, London, EC3V 9JU, Dealing: 0845 606 6180 Authorised Inv Funds

$ 11.48

-0.01

Regulated

Cavendish Japan Fund B Class

Canada Life Investments

Frk Global Conver.Securities

-

-

628.40

-0.11 0.00

-

0.00

-

Eastern Acc GBP

-

-0.01

-

1.07

Eastern Inc GBP

Arisaig Latin America Consumer Fund $ 23.99

-

1.10

1.06

-0.46 0.00

-

1.09

Fidelity PathFinder Focussed 3 Acc (clean) £

Fidelity PathFinder Freedom 1 Acc (clean) £

-0.06 0.00

-

-0.13 0.00

Fidelity PathFinder Focused 2 Acc (Clean) £

Fidelity PathFinder Freedom 2 Acc (clean) £

-

Arisaig Global Emerging Markets Consumer UCITS STG £ 10.91

-

0.00

-

-

$ 13.06

-

Arisaig Asia Consumer Fund Limited $ 60.07 Arisaig Global Emerging Markets Consumer UCITS € 10.84

Frk Gbl Fundamental Strat Fd

-0.45 0.00

Arisaig Africa Consumer Fund Limited $ 17.66

-

-

-

Cavendish Japan Fund A Class

Arisaig Global Emerging Markets Consumer Fund $ 10.33

0.00

3.87

Equinox Fund Mgmt (Guernsey) Limited

259.80 274.40 -1.70 1.30

-

-

£

CATCo Re Fund Ltd Series A

Crediinvest SICAV Money Market Eur I € 11.23

Dynamic Capital Growth Inc

58.00 0.16

1.08

$

Ennismore European Smlr Cos Hedge Fd

639.90 676.10 -4.20 1.29

-

-0.12 0.00

Fidelity PathFinder Focussed 1 Acc (clean) £

Frk Gold and Precious Mtls Fd F

(IRL)

Dynamic Capital Growth Acc

Dynamic Ratchet Bond Fund-Japan ¥ 6991.00

-

Index Linked Bond Gross

CATCo Reinsurance Fund Ltd. Regulated

-0.10 0.00

CACEIS (Switzerland) SA

$ 11.33

0.02 0.59

-

Dealing and Enquiries 020 7214 1004 Fund Information: www.barings.com Authorised Inv Funds

Frk Gbl Equity Strategies Fd

-

Crediinvest SICAV Sustainability € 14.22

(UK)

-

2.63

-0.27 0.00

Baring Fund Managers Ltd (1200)F

0.01

-

Other International Funds

-

£ 127.55 127.55 -0.26 0.27

-

£

www.creditandorra.com FCA Recognised

Crediinvest SICAV US American Value $ 18.16

Capital Value Fund Cls V

1.09

Index Linked Bond

(BMU)

Chelsea House, Westgate, London W5 1DR IFA Enquiries 020 8810 8041 Admin/Dealing 0870 870 7502 Authorised Inv Funds

Arbiter Fund Managers Limited

-0.15 0.00

Fidelity PathFinder Focussed 1 Gross Acc (clean) £

-0.04 0.55

Cavendish Asset Management Limited (1200)F (UK)

£ 169.62 169.62 -1.58 2.34

-

-

-0.62 0.00

£ 127.50 127.50 -0.90 1.64

€ 29.48

2.61

(LUX)

-0.14 0.00

Real Return Cls A

Frk European Sml Mid Cap Gth

£

Crèdit Andorrà Asset Management

-

Dollar Fund Cls D

-

Global Focus

0.0183 4.85

-

0.00 3.42

-0.07 0.00

-0.01

0.70

-

Crediinvest SICAV International Value € 210.50

-

-

-

-

$ 1.1819

Crediinvest SICAV Big Cap Value € 16.13

0.46

€ 13.88

1.14

Fidelity Pre-Retirement Bond Fund £ 115.20

CATCo Re Opps Fund Ords

223.16 230.64 0.11

£

Frk European Growth

Fidelity PathFinder Foundation 5 Acc (clean) £

-0.01 2.49

105.35 108.88 0.06 6.38

Sterling Bond F

-0.16 0.00

-0.05 0.51

Property Acc

CG Portfolio Fund Plc

-

-

Property Inc

Capital Gearing Portfolio Fund Plc £ 26330.49 26330.49 -42.67 0.63

€ 17.47

3.86

Other International Funds

(JER) Barclays Investment Funds (CI) Ltd 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 FCA Recognised Bond Funds

Frk Euroland Fund

-

£

BNP Paribas

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

-

-0.01

Europe

-0.01 0.00

0.00 0.20

-0.01

-

-0.06 0.42

-2.47 0.00

-

-

1.09

-

-

1.00

1.08

Fidelity PathFinder Foundation 4 Acc (clean) £

-

-

$

0.00 0.00

Fidelity PathFinder Foundation 3 Acc (clean) £

3.16

Crediinvest SICAV Spanish Value € 248.11

Global Liquidity USD

-

3.70

Crediinvest SICAV Fixed Income Usd $ 10.67

Regulated

€ 1012.44

£

22.4772 0.00

(IRL)

Frk Euro S-Term Money Mkt Fd

£

21.0045 0.00

Bank of America Cap Mgmt (Ireland) Ltd

-

Emerging Markets

-

257.62 276.73 0.26 4.54

0.00

America

-

Property

-

0.25 0.00

$ 1414.4820

Local Authorities Property Fd (LAMIT) (UK)

1.08

-0.43 0.00

$ 1389.9270

0.00 0.03

-0.04 0.00

Fidelity PathFinder Foundation 2 Acc (clean) £

-

CATCo Re Fund Ltd Series E

-

-0.59 0.00

-

-

CATCo Re Fund Ltd Series D

1.00

-

$ 10.46

Ennismore European Smlr Cos NAV € 116.24

747.16 750.16 5.68

BNP PARIBAS GLF USD-DIST-USD $

$ 31.24

Frk Brazil Opportunities Fd

Ennismore European Smlr Cos NAV £ 92.05

135.70 136.24 1.03 4.05

-

Frk Biotech Discovery

-

9 Par-La-Ville Road, S E Pearman Building, 2nd Floor, Hamilton, Bermuda Authorised Funds

Fixed Interest Inc

-

-

-0.01

CATCo Reinsurance Opportunities Fund Ltd. (UK)

Fixed Interest Acc

* RDR-compliant share class

0.00

-

0.00

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

-

-

-

1.07

-

Ennismore Smaller Cos Plc

-1.22 0.00

1.08

Fidelity PathFinder Foundation 1 Acc (clean) £

1.07

-

(UK)

Fidelity PathFinder Foundation 1 Gross Acc (clean) £

Fidelity PathFinder Freedom 1 Gross Acc (clean) £

209.97 217.01 0.22

-

Dodge & Cox Worldwide Funds

(IRL) 6 Duke Street,St.James,London SW1Y 6BN www.dodgeandcox.worldwide.com 020 3713 7664 FCA Recognised Dodge & Cox Worldwide Funds plc - Global Bond Fund

€

Class A Acc

0.00

Electric & General (1000)F

135.10

-

-

Property Fund Acc

-

-0.32 0.39

€

Electric&General Net Income A

-

-0.43 0.45

Global Opportunities I EUR

CC Japan Inc & Grwth Fd - USD Founder Inc $ 15.01 15.01 -0.21 0.00

€ 141.83

-

-0.09 3.26

122.48 126.59 0.14 6.53

€ 101.78

$ 34.12

-

Property Fund Inc

V350 P Cap*

Tem Global

0.00 3.39

9.48

-0.16 0.00

Equity World Low Vol P Cap*

0.00 3.39

-

$

-0.44 0.00

(LUX) 5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 www.amundi-funds.com FCA Recognised

-

0.32

Tem Global High Yield Fd F

-

Amundi Funds

0.32

£

-0.02 1.18

-

-

£

Strategic Bond Gross

-0.01 0.25

€ 134.92

229.40 231.94 -3.04

Strategic Bond

-

$ 117.70

Ethical Invest Acc

-0.20

-

Equity Europe Growth P Cap*

-3.33 0.00

-

2.21

-

-

$ 17.94

1.36

-0.24

$ 151.88

Tem Emg Mkts Bd

£

-

Equity USA Small-Cap P Cap*

-0.32 1.79

£

95.31

186.76 188.82 -2.47 3.87

-

UK Select

Allianz UK Unconstrained C Acc

Ethical Invest Inc

£ 27.38

Target 2030

CC Japan Inc & Grwth Fd - USD Founder Acc $ 15.81 15.81 -0.22 0.00

-3.67 0.00

-0.08 2.75

Special Situations

-0.01 0.99

481.49 483.41 -2.09

-

-

-0.02 1.09

Fixed Interest Acc

$ 174.66

7.83

-

-1.51 0.00

Equity USA Mid-Cap P Cap*

-

$

-

-

11169.49 11293.03 -155.81

$ 32.35

Tem Emg Mkts Balanced AQdis

1.10

$ 82.15

Investment Acc

Tem Emerging Markets

-0.08 0.47

1.72

Equity Brazil P Cap*

-2.41 0.00

0.00 5.02

-

£

-

-

-

7.89

$

-0.23

$ 134.82

1.12

£

Global Opportunities I GBP

-

Equity USA Growth P Cap*

£

South East Asia

Global Opportunities I USD

95.89

Yield expressed as CAR (Compound Annual Return) All transactions to Ser A units the sell price will be used

Multi Asset Income A Net Inc

-0.09 2.84

Allianz UK Growth C Acc

1204.83 1218.15 -16.80 3.82

-0.19 0.26

-

-

Stuart House St.John's Street Peterborough PE1 5DD Orders & Enquiries: 0845 850 0255 Authorised Inv Funds Authorised Corporate Director - Carvetian Capital Management

Investment Inc

0.04 0.28

-

CC Japan Inc & Grwth Fd - JPY Founder Inc ¥ 1515.57 1515.57 -20.66 0.00

0.92 0.00

-

$ 10.13

CC Japan Inc & Grwth Fd - JPY Founder Acc ¥ 1607.99 1607.99 -21.92 0.00

-

$ 32.58

€ 10.37

163.54 164.20 -0.72 4.02

€ 116.97

Tem Asian Growth

Tem Global Equity Income

207.13 209.21 2.12

Equity Turkey P Cap*

-0.01

0.00 3.68

Tem Global Bond (Euro)

Fixed Interest Inc

-3.33 0.82

-

-

0.00 0.50

UK Equity Acc

-

0.00 1.70

$ 13.71

1.46

-0.01 0.27

-0.42 0.00

179.62

-

Tem Asian Bond

£

-

-0.45 0.00

Allianz US Equity C Acc

$ 11.39

0.00 5.04

Multi Asset Income A Net Acc

-

-

-7.22 0.13

Frk US Total Return

-

1.29

-

-

0.00 3.68

1.12

0.56

Equity Best Selection Europe ex-UK P Cap* € 120.27

389.45

-

£

£

Equity Best Selection Europe P Cap* € 134.56

Allianz US Equity A Acc

1.53

Multi Asset Income A Gross Inc

£

-0.75

-0.81 0.00

Multi Asset Income A Gross Acc £

Target 2025

-10.38 1.71

-1.15 0.00

-0.01 0.59

Target 2020

-

-

-

-0.01 0.96

-

-

9.88

-

95.78

$ 461.55

$

2.42

4143.37

$ 32.25

Frk US Low Duration Fd

€

(UK)

Allianz UK Growth A Acc

Equity Russia Opport. P Cap*

-0.01 0.00

European Opportunities A EUR

Consistent Unit Tst Mgt Co Ltd (1200)F

CC Japan Inc & Grwth Fd - GBP Founder Inc £ 15.07 15.07 -0.20 0.00

Equity Latin America P Cap*

-

-0.21 0.63

144.36 145.82 1.47 4.01

-43.43 1.78

1.18

-0.19 2.30

221.77 224.23 1.06

-

£

-

UK Equity Inc

3588.54

0.00 0.00

Open World A-Acc

$ 20.89

Global Equity Acc

Allianz UK Mid Cap Fund C Acc

-

Tem Global Bond

-0.48 0.00

Senator House 85 Queen Victoria Street London EC4V 4ET Property & Other UK Unit Trusts COIF Charity Funds (UK)

9.67

0.00 0.31

-0.41 0.00

CCLA Fund Managers Ltd

$

-

-

-982.00 0.00

Frk US Liquid Reserve Inc

0.50

-

-2232.00 0.00

0.00 0.53

£

€ 108.80

-

-

Target 2015 - Gross

Equity Best Selection Euro P Cap* € 139.15

-

1.51

-0.01 1.31

Convertible Bond World P Cap*

¥ 187074.00

£

-

0.55 3.74

¥ 98021.00

0.01 2.34

Multi Asset Strategic

3.09

-2.10 4.73

Equity Japan Small Cap P Cap*

-

$

-

-

Equity Japan P Cap*

9.47

European Opportunities I USD

€ 11.92

-

-42.90 0.93

$

-0.01 0.00

Comgest Gth GEM PC DIS F

267.73

-16.72 2.49

Frk US Government

-

106.42

-

-0.15 2.99

0.00 2.31

-

Allz UK Equity Income A Inc

-

-

-

$ 22.85

Allz UK Corporate Bond C Inc

3537.83

$ 12.41

0.30

€ 16.97

-

1226.23

Frk Income

Multi Asset Open Strategic A-Inc £

Tem Global Balanced

CC Japan Alpha Fd - Cls C JPY

Allianz UK Mid Cap A Acc

-0.07 5.30

Tem Global (Euro)

CC Japan Inc & Grwth Fd - Cls Acc USD $ 15.47 15.47 -0.22 0.00

Allianz UK Index C Inc

-

0.00 0.28

0.00 0.89

1.19 0.00

$ 10.35

-

-0.01 0.00

-

Frk Global Income Fd

0.50

-

$ 109.81

0.00 0.72 0.00 0.53

£

-

Equity Indonesia P Cap*

-

Target 2015

$ 19.39

-23.50 2.94

0.47 1.23

-0.01 1.56

£ 10.03

-

0.01 1.32

Multi Asset Open Growth A-Acc £ Multi Asset Open Strategic A-Acc £

-0.01 1.34

Cap Group Global Bond BD

1725.56

-

-

Cap Group Global Bond B

Allianz UK Index C Acc

$ 10.13

-

2631.34 2660.44 16.33

-0.50 0.87

Frk Global Aggregate Bond Fd

1.96

Investment Acc

-

0.00 0.56

2.48

Cap Group Global Bond B

198.40

-

£

1331.57 1346.29 7.99 3.77

Allianz UK Unconstrained A Acc

1.09

€

Investment Inc

Equity India P Cap*

£

European Opportunities I GBP

-

-

0.02 0.00

MultiManager Balanced

European Opportunities I EUR

€ 11.01

-

-0.02 1.63

-

-0.04 0.00

106.10

-

-

$ 10.70

-

€ 17.59

Allz UK Corporate Bond A Inc

Allz UK Equity Income C Inc

€ 10.05

Frk Global Aggr.Inv.Grd Bond Fd

Comgest Gth Europe DIS F

SFr 13.24

-

Frk European Total Return

0.00 0.35

-0.02 0.32

Cap Group Em Mkts Debt B

Cap Group Glb H Inc Opp BD

-

$

0.00 0.36

-

-0.26 0.28

Senator House 85 Queen Victoria Street London EC4V 4ET Authorised Inv Funds The Public Sector Deposit Fund

121.02

CF Eclectica Agriculture A USD Acc

-

1.35

-

0.00 0.00

Allz RiskMaster Moderate C Acc

-1.51 0.00

1.21

£

-

$

-

0.20 0.00

-0.03 0.00

-

£

Multi Asset Growth

7.73

Comgest Gth Asia ex Jap DIS F

BNP Paribas InstiCash GBP P Cap* £ 131.88

-

-

Multi Asset Defensive - Gross

Comgest Gth Emerging Mkt DIS F $ 32.80

Cap Group Em Mkts Debt B

Cap Group Euro Bond B

1.34 106.22

-

(IRL) 27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Dealing - Fax only - +353 1 434 5230 FCA Recognised Edinburgh Partners Opportunities Fund PLC

46 St Stephen's Green, Dublin 2, Ireland FCA Recognised

BNP Paribas L1

SFr 11.14

€

CF Eclectica Agriculture C GBP Acc

€ 18.95

0.17

Cap Group Em Mk Tot Opp B

Eclectica Asset Management

CF Eclectica Agriculture A GBP Acc

Comgest Magellan

-

$ 3973.23

0.77 0.00

Objective Based Funds

117.60

(UK) 40 Dukes Place, London EC3A 7NH Order desk: 0845 6080941 Switchboard 0870 6072555 Authorised Corporate Director - Capita Financial Managers Authorised Inv Funds

(LUX)

-

$ 165.56

(LUX) 8A rue Albert Borschette / L-1246 Luxembourg www.franklintempleton.co.uk UK freephone 0 800 305 306 FCA Recognised Class A Dis

0.05 0.00

-

Bond USD Goverment P Cap*

0.00 3.41

Franklin Templeton Investment Funds

-

105.79

-0.87 0.00

-0.01 2.39

-

469.01

-

-0.01 2.23

-

7.23

£

Allianz Japan C Acc

119.19

-

0.71

SFr 11.05

Cap Group Japan Equity BD

Allianz Japan A Acc

Allz RiskMaster Moderate A Acc

0.71

£

Cap Group Japan Equity B

CCLA Investment Management Ltd

0.00 0.28

£

MoneyBuilder Growth ISA

-0.02 2.21

0.00 0.00

-

MoneyBuilder Growth

-2.60 1.52

-0.04 5.32

-

100.00

-2.60 0.52

-

-

BNP Paribas InstiCash EUR P Cap* € 118.76

The Public Sector Deposit Fund-share class 5 F

-

220.10

-

1.15 1.96

-0.13 0.00

215.10

UK Equity Growth Cls B Inc

9.93

1.11 1.96

-

UK Equity Growth Cls A Inc

6.72

-

$ 18.64

-0.03 4.52

$

-

Bond USA High Yield P Cap*

-

$

171.82

-1.28 0.03

2.50

Frk High Yield

166.31

-

£

Frk Gbl R.Estate (USD) A Dis

Allianz Gilt Yield Fund I Inc

122.70

Money Builder Dividend

-0.04 2.32

Allianz Gilt Yield Fund C Inc

Allz RiskMaster Growth C Acc

-0.70 4.60

-

55.16 55.82 -0.51 4.52

0.00 0.38

-

3.53

123.43 124.91 -1.14 4.38

-

132.30

Multi Asset Alloc Adventurous A-Acc £

Consistent UT Acc

100.00

-0.25 5.77

Higher Income Cls B Inc

-0.70 3.97

Consistent UT Inc

The Public Sector Deposit Fund-share class 4 F

-

-

-0.10 0.00

-0.09 0.00

Franklin Emg Mkts Debt Opp USD $ 18.64

103.40

-

-

-0.01 4.19

Amity Global Equity Inc for Charities A Inc

$ 13.09

Bond Euro Medium Term P Cap* € 134.76

-

0.04 0.00

Income Funds

-1.26 0.00

0.49

-

Cap Group Gbl Abs Inc Grow B

-

£

$ 11.40

5 Aldermanbury Square, EC2V 7BP London Telephone: +44 207 063 7783 FCA Recognised BNP Paribas Insticash

120.43

MoneyBuilder Balanced

Cap Group Japan Equity B

-1.57 0.00

Allz RiskMaster Growth A Acc

-0.70 4.63

0.00 3.41

-1.50 0.00

0.00 0.33

-

-0.01 0.47

-

0.00 0.28

129.10

-

-

-

-0.24 5.77

Higher Income Cls A Inc

1.30

88.05

-

-0.08 5.77

-

£

84.00

100.00

-

Franklin Emg Mkts Debt Opp SGD S$ 23.81

Multi Asset Adventurous A-Acc

Allianz EcoTrends C Acc

100.00

Franklin Emg Mkts Debt Opp GBP £ 10.97

0.00 0.53

-0.50 2.81

Allianz EcoTrends A Acc

The Public Sector Deposit Fund-share class 3 F

0.01 0.00

-

-

-0.05 1.38

The Public Sector Deposit Fund-share class 2 F

-

1.18

195.50

-

0.00 0.00

1.74

£

Amity European Fund Cls B Inc

6.84

-0.14 0.00

£

MoneyBuilder Asset Allocator

0.05 0.00

£

-

Japan Smaller Companies

-1.70 2.36

-

Cap Group Em Mk Tot Opp Bd

-

-1.70 1.56

-

9.20

-

$ 102.84

-

198.30

€

-0.16

€ 156.31

198.00

Amity UK Cls B Inc

Cap Group Japan Equity B

-

Bond Euro P Cap*

Amity UK Cls A Inc

-

96.77

Bond Asia ex-Japan P Cap*

-0.15 5.84

-

Allz European Eq Inc C Inc

-0.06 0.15

-

0.36

PO BOX 10117, Chelmsford, Essex, CM1 9JB Dealing & Client Services 0845 0264281 Authorised Inv Funds

-0.07 0.00

Franklin Emg Mkts Debt Opp EUR € 12.88

0.36

-0.07 0.00

-

0.01 0.26

£

-

-

-0.26 5.85

-

£

$ 11.50

111.34

-

2.52

MoneyBuilder Income -Gross

Cap Group Em Mk Tot Opp B

110.12

Franklin Emg Mkts Debt Opp CHFSFr 19.14

£

MoneyBuilder Income

-

Allz RiskMaster Defensive C Acc

-0.02 2.13

Japan

-0.60 2.06

-0.15

Allz RiskMaster Defensive A Acc

-0.01 1.71

-

-0.20 5.49

-

0.00 0.48

-

1.11

-

99.95

-

1.37

£

-

Allz European Eq Inc C Acc

100.00

£

Index World P-Acc

192.80

-0.05 0.00

The Public Sector Deposit Fund-share class 1 F

Index World A-Acc

JPMorgan House - International Financial Services Centre,Dublin 1, Ireland Other International Funds Franklin Emerging Market Debt Opportunities Fund Plc

109.80

-0.05 0.00

Parvest

-0.02 1.75

Amity Balanced For Charities A Inc

-

-0.50 0.31

-

Amity European Fund Cls A Inc

-

-0.50 0.00

1.19

-0.06 0.00

9.26

-

£

-0.10 0.00

€

-

Index US P-Acc

Franklin Templeton International Services Sarl (IRL)

-

Cap Group Em Mk Tot Opp B

116.96

-0.03 1.34

-

-0.28 3.91

115.57

-0.01 0.99

-

€ 17.88

-0.21 3.77

Allz RiskMaster Conservative C Acc

-

1.54

SFr 21.48

-

Allz RiskMaster Conservative A Acc

0.99

£

Cap Group Global Equity B

-

-0.14 6.21

£

Index US A-Acc

Cap Group Global Equity B

178.20

-

Index UK P-Acc

-0.11 0.00

131.78

€ 93.80

-0.02 1.20

-0.06 0.30

Allz European Eq Inc A Acc

BNPP L1 Bd World Plus P Dis*

0.00

-

-

Allz European Eq Inc A Inc

(UK)

-

0.81

-

-0.39 1.09

(LUX)

1.08

£

$ 22.16

-

BNP Paribas Investment Partners

£

Index UK A-Acc

£ 13.62

133.31

-0.84 2.25

(UK)

Index Pacific ex Japan P-Acc

Cap Group Global Equity BD

Allz Continental European C Acc

-

-1.25 2.84

-

Cap Group Global Equity B

-2.47 0.21

131.14

-

9.81

-1.05 1.49

FP CAF UK Equity B Class Inc

€ 112.93

5.62

-

-0.91 2.22

Global Growth I2 Acc

$

-

-

(LUX)

www.dsmsicav.com Regulated

€

61.07

141.31

DSM Capital Partners Funds

CMI Access 80% Gu F

828.24

FP CAF UK Equity B Class Acc

0.78

CMI US Dllr Currency Reserve

Allz Continental European A Acc

-

1.91

-0.16 0.00

8.06

-

Allianz Brazil Fund C Acc

£

-

$ 13.28

BlueBay Inv Grd I Euro Agg Bd Fund € 147.03

-1.02 0.88

DX EVOLUTION PCC LIIMITED - DXE (€) FUND € 99.10 99.10 1.32 0.00

Frk Mutual Shares A Acc

£ 12.33

£

-2.59 0.00

-

0.00 2.39

Global Focus

CMI US Bond

-

59.78

-

-0.02 4.04

CMI UK Bond

-

$ 374.08

Allianz Brazil Fund A Acc

1.39

-

-1.85

Aspect Diversified USD

-1.96 1.06

£

-

-2.09 0.00

Formerly Target Life Assurance Ltd 100 Holdenhurst Road, Bournemouth, BH8 8AL 0845 6023 603

-

European - Inc

2.13

-

-0.23 0.00

161.25

0.00 0.99

Other International Funds

-0.01 1.02

1.45

-

-0.12 0.00

Allianz BRIC Stars C Acc

-

£

$ 163.74

-

-1.84 0.63

1.74

£

$ 289.28

-

-

£

Frk UK Equ Inc A Inc

BlueBay Em Mkt Corp Bd B

€ 172.51

151.46

Frk Europ. Opp A Inc

Frk UK Equ Inc A Acc

BlueBay Em Mkt Bd B - USD

BlueBay Inv Grd B Euro Gov Bd Fund € 146.47

Allianz BRIC Stars A Acc

-0.01 6.97

-0.01 3.05

0.06 1.86

BlueBay Inv Grd B - EUR

199 Bishopsgate, London, EC2M 3TY,0800 073 2001 Authorised Inv Funds OEIC

-

-0.01 3.24

-

Other International Funds

(UK)

-

1.23

-

€ 45.73

Aspect Capital Ltd (UK)

Allianz Global Investors GmbH(1200) F

2.04

£

-

CMI Euro Bond F

-

€ 103.43 103.43 -0.02 0.00

£

Enhanced Income - Inc

1.51

-0.39 0.00

-

ACQ - Risk Parity Bond EUR A

Frk Europ. Opp A Acc

Dominion Fund Management Limited

Class A

1.37

-

1022.20 1076.00 -4.40

-0.55 0.00

-0.02 6.74

£

€ 100.20

1530.80 1619.90 -6.60

-

-

£

BlueBay Em Mkt Abs Ret Bd IN

Managed Ser A (Pensions)

€ 95.76

1.81

(UK) PO Box 23676, Edinburgh EH7 5WS 0207 073 8690 Freefone 0800 305 306 [email protected] Authorised Inv Funds Franklin Templeton Funds (OEIC)

Global Dividend - Inc

Bond Sub Funds

Managed Ser A (Life)

AC Risk Parity 17 Fund EUR A

£

0.00 0.00

-

-

0.00 0.84

Enhanced Income - Acc

-

$ 92.84

-0.57

-

Vietnam Property Fund (VPF) NAV $

EM Mkts Loc.Ccy Bd USD F

-

1.41

0.33 0.00

-

€ 146.64

£

-

897.90 945.20 -9.20

AC Risk Parity 12 Fund (EUR A)

Emerg Eur, Mid East & Africa H

Vietnam Growth Fund (VGF) NAV $ 23.25

International

-

-0.01 0.25

-0.01 0.00

0.08 0.00

-0.52 8.93

-0.29 0.00

-0.01 0.22

-

-

-

-0.12

-

1.16

3.49

$ 97.81

-

1.42

£

Franklin Templeton Fund Mgt Limited

Global Dividend - Acc

Managed Sub Funds

Weekly Valuing Funds

-

£

Vietnam Enterprise Inv. (VEIL) NAV $

EM Mkts Corp.Debt USD F

-

-

-0.01

Emerging Asia

-0.03 0.02

-

€ 104.00

€ 18.17

-

China Consumer

-0.02 0.20

1614.10 1699.10 4.30

€ 122.19

-0.39 2.34

1.01

-1.18 0.00

-

Fixed Int.

AC Opp - Aremus Fund EUR A

-0.34 0.97

-

£

-0.01 0.00

-

-0.25 1.57

AC Risk Parity 7 Fund (EUR A)

-

-

Asia Pacific Ops W-Acc

-

2.51

-

www.alceda.lu FCA Recognised

€ 26.48

CMI Pacific Basin Enhanced Equity $ 43.33

£ 71.51 71.51 -0.94

-

2.29

Ashmore SICAV Local Currency Fund $ 88.54

Alceda Fund Management S.A.

CMI Continental Euro Equity

-

GBP Inst. Accumulation Shares

-0.01 2.64

Global Equity

-

additional fund prices can be found on our website

107.25 112.77 0.74 0.00

Regional Equity Sub Funds

€ 72.97 72.97 -0.82

-

-0.01 0.50

Global Network Mgd Global Mxd £

1135.00 1194.80 -5.30

-

23 route d'Arlon, L-8010 Strassen Lux 00 352 3178311 FCA Recognised CMI Global Network Fund (u)

-

EUR Inst. Accumulation Shares

-0.16

-

-1.19 0.07

European

1952.00 2054.80 -3.40

0.04

-0.48 0.00

-

-0.79 8.76 -1.43 0.07

Selective

-

-

£ 10.60

1.06

-

-

£ 15.12

£ 26.26

American Special Sits

1.09

-

Ashmore SICAV Global Small Cap Equity Fund $ 128.74

1476.80 1554.50 0.00

CF Greenwich Class 1 GBP Acc

(LUX)

American

Fidelity Asian Dividend Fund A-Income £

Ashmore SICAV Global Equity Fund $ 114.88

-

Security

CMI Asset Mgmt (Luxembourg) SA

-

Fidelity Asian Dividend Fund A-Accumulation £

-

Ashmore SICAV Emerging Market Total Return Fund $ 87.85 4776.00 5027.40 -33.90

-

-0.04 0.00

$ 52.02 54.62 -0.48

USD Inst. Annual Distribution Shares $ 74.89 78.63 -0.44

-1.22 0.00

£ 129.47

Global Bond

Equity

2642.70 2781.80 1.30

-

-0.11 0.00

(LUX)

Ashmore SICAV Emerging Market Debt Fund $ 97.79

$ 21.75

-

BLK Intl Gold & General

Prop. Ser. 4

The Greenwich Fd

109.93

£ 1031.50

Dominion Fund Management Limited PO Box 660 Ground Floor, Tudor House Le Bordage St Peter Port Guernsey - Channel Islands United Kingdom GY1 3PU +44(0)1481 734343 [email protected] www.dominion-funds.com FCA Recognised

Retail Accumulation 2

Blackrock UK Long Lease

FourWinds Capital Management (UK) Limited (LUX)

109.44

(IRL) Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland Tel: 44 (0) 207 766 7130 FCA Recognised Artisan Partners Global Funds plc

-0.22 0.00

-0.25 0.00

CF Heartwood Defensive Multi Asset Fund B Accumulation

-

-

-

CF JM Finn Gbl Opps A Acc

1609.00 1693.60 -21.30

Artisan US Value Equity Fund Class I USD Acc $ 11.14

$ 34.07

Contact +442075187970,[email protected],www.fourwindscm.com Regulated Bache Global Series - Alternative Benchmark Commodity Index

American Ser. 4

-

Foord International Trust

186.20 186.20 0.00 0.00

Cash Accum Units

(GSY)

Regulated

-

-

£ 38.43

Foord Asset Mgt (Guernsey) Ltd

Cheyne European Real Estate Bond Fund € 112.43

1522.50 1602.70 -2.80

(JER)

130, Tonbridge Rd, Tonbridge TN11 9DZ Callfree: Private Clients 0800 414161 Broker Dealings: 0800 414 181 Authorised Inv Funds Unit Trust

-0.37 0.53

Selective Acc. Ser 2

BlackRock

FIL Investment Services (UK) Limited (1200)F (UK)

-

-

-

(IRL) Styne House, Upper Hatch Street, Dublin 2 Tel: 00 353 1603 6460 FCA Recognised

127.18

1439.60 1515.40 0.70

Artisan Partners Global Funds PLC

Findlay Park Funds Plc

CF Heartwood Cautious B Acc

Prop. Acc. Ser 2

Property

+/- Yield

-

-

-

Offer

-

ACPI Global Credit UCITS Funds USD A $ 13.64

-

Bid

226.52

UK Government Bond B Inc

4173.90 4393.60 -25.70

Fund

103.87

UK Equity Income B Inc

351.00 369.40 -1.20

+/- Yield

UK Equity & Bond Income B Inc

-0.54 0.67

Managed

Offer

UK Equity B Inc

-0.03 6.05

Japan

Bid

-0.08 0.00

-

American

Fund

-0.15 0.67

-

Pension Funds

+/- Yield -0.42 0.00

-

9.15

-

-

-

Eastern Europe A GBP Inc

524.10 551.60 0.00

Offer

9.54

Emerging Mkt Debt LC A GBP Hedged Inc £

Money Ser. 4

Bid € 20.40

5.09

-

81.93 86.96 -0.02 4.02

Life Funds

Fund

Dynamic Emerging Markets A GBP Acc F £

0.18

74.27 78.53 -0.74 0.00

(UK) 100 Holdenhurst Road, Bournemouth BH8 8AL 0845 9600 900 additional fund prices can be found @ www.abbeylife.co.uk Insurances

+/- Yield

Baring Global Mining Fund - Class A GBP Inc £

-

Artemis Strategic Bond R M Acc

Abbey Life Assurance Company Limited

Offer

60.48 64.16 -0.21 4.63

Artemis Strategic Assets R Acc

-0.25 0.00

Bid

98.25

-0.98 0.00

(IRL)

Fund

Artemis Pan-Euro Abs Ret GBP -

Regulated

+/- Yield

Artemis Monthly Dist R Inc

ACPI Emerging Mkts FI UCITS Fund USD A $ 110.23

ACPI Select UCITS Funds PLC

Offer

UK Aggregate Bond Inc

£

1.23

-

0.00 3.14

UK Corporate Bond

£

1.24

-

0.00 4.00

UK Corporate Bond - Gross

£

2.22

-

0.01 3.86

UK Corporate Bond Fund Gross Inc £ 11.32

-

0.03 3.98

UK Gilt Bond

£

1.28

-

0.01 1.86

UK Gilt Gross

£

2.00

-

0.02 1.83

UK Long Corp Bond

£

1.40

-

0.01 4.47

UK Long Corp Bond - Gross

£

2.42

-

0.01 4.28

UK Long Corporate Bond Fund - Gross Income £ 11.25

-

0.05 4.43

UK Specialist

£

1.73

-

-0.02 1.25

Emerging Markets - retail

£

1.27

-

-0.01 0.00

Europe Long Term Growth

£

1.54

-

0.00 1.84

Retail Share Classes

-

Frk Strategic Income Fd

$ 14.67

-

-0.06 0.00

Frk Technology

$ 10.45

-

-0.19 0.00

Frk U.S. Focus Fund

$ 15.94

-

-0.29 0.00

Frk US Equity

$ 23.41

-

-0.45 0.00

Frk US Opportunities

$ 11.48

-

-0.24 0.00

Frk US Sml Mid Cap Gth F

$ 18.68

-

-0.41 0.00

Frk Wrld Perspective Fd

$ 18.74

-

-0.24 0.00

Tem Africa

$ 11.11

-

-0.04 0.00

Tem Asian Sml Comp Fd

$ 38.52

-

0.15 0.00

Tem BRIC

$ 13.72

-

-0.11 0.00

Tem China

$ 22.43

-

0.17 0.00

Tem Eastern Europe

€ 18.06

-

-0.18 0.00

Tem Emerging Mkts Sml Comp Fd $ 10.05

-

0.05 0.00

Tem Euroland

€ 17.33

-

-0.19 0.00

Tem European EUR

€ 19.03

-

-0.21 0.00

Tem Frontier Mkts Fund

$ 18.58

-

-0.10 0.00

Tem Growth (Euro)

€ 14.70

-

-0.26 0.00

Tem Korea

$

5.29

-

-0.04 0.00

Tem Thailand

$ 21.57

-

0.05 0.00

Frontier Gottex

(UK)

Authorised Inv Funds FP Frontier MAP Balanced Fund

137.20

-

-0.94 0.66

Frontier Capital (Bermuda) Limited Other International Commercial Property-GBP Class

£ 71.42

-

-0.53

-

Global Real Estate-GBP C Class

£ 45.26

-

-0.50

-

Fundsmith LLP (1200)F

(UK) PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815 www.fundsmith.co.uk, [email protected] Authorised Inv Funds Fundsmith Equity T Acc

196.35

-

-2.12 1.02

Fundsmith Equity T Inc

187.63

-

-2.02 1.03

{*}CAR - Net income reinvested

GAM Limited (2300)F FIL Fund Management

(LUX)

EUR Accumulating Class

€ 10.91

-

-0.08

-

(LF) FOF Dynamic Fixed Inc €

€ 10.97

-

-0.06 0.00

2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg Phone: 800 22 089, 800 22 088 Regulated

EUR Accumulating Class (H)

€

9.76

-

-0.02

-

(LF) FOF Real Estate €

€ 15.12

-

-0.02 0.00

China Consumer A-GBP

£ 14.22

-

0.10 0.00

EUR Distributing Class

€ 10.80

-

-0.08

-

China Focus A-GBP

£

3.98

-

0.05 0.27

EUR Distributing Class (H)

€

9.66

-

-0.02

-

Global Financial Services A-GBP £

0.42

-

0.00 0.00

GBP Distributing Class

£ 10.41

-

-0.04

-

Global Health Care A-GBP

£

0.52

-

0.00 0.00

GBP Distributing Class (H)

£

9.69

-

-0.01

-

Global Industrials A-GBP

£

0.66

-

-0.01 0.00

USD Accumulating Class

$

9.79

-

-0.01

-

(UK)

GAM Sterling Management Limited 12 St James's Place London SW1A 1NX. 0800 919 927 Internet: gam.com Authorised Inv Funds GAM Funds OEIC GAM Global Diversified Acc

3778.52

-

-30.66 0.19

GAM North American Gwth Acc

3000.83

-

-72.69 0.00

GAM UK Diversified Acc

1823.81

-

-9.42 1.25

GAM Limited

CAM-GTF Limited

$ 346202.09 346202.10 491.77 0.00

USD Accumulating Share Class

$ 16.90

-

-0.25 0.00

Global Technology A-GBP

£

0.23

-

0.00 0.00

(IRL) FCA Recognised GAM Fund Management Ltd Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927

CAM GTi Limited

$ 741.83

GBP Accumulating Share Class

£ 17.70

-

-0.31 0.00

Global Telecomms A-GBP

£

0.27

-

0.00 1.01

GAM Star Fund Plc

GBP Distributing Share class

£ 13.01

-

-0.23 0.64

India Focus A-GBP

£

4.40

-

0.00 0.00

GAM Star Asia-Pacific Eqty USD Acc F $ 11.92

-

-0.08 0.76

Latin America A-GBP

£

1.75

-

-0.02 0.16

GAM Star Asian Eqty USD Ord Acc F $ 14.00

-

0.09 0.00

Chartered Asset Management Pte Ltd Other International Funds

Raffles-Asia Investment Company $

1.99

-

-44.22 0.00

1.99 -0.18 6.51

Global Inflation-Linked Bd A-GBP-Hdg £

1.19

-

0.00 0.51

Dodge & Cox Worldwide Funds plc-Global Stock Fund

Global Real Asset Securities

£

1.42

-

-0.01 0.00

30

★

FINANCIAL TIMES

Friday 12 December 2014

MANAGED FUNDS SERVICE Fund

Bid

Offer

£ 10.11

-

-0.06

GAM Star Cap.Appr.US Eqty USD Inc F $ 16.89

-

GAM Star Cat Bond USD Acc

$ 12.40

-

GAM Star Cautious GBP Acc

GAM Star Balanced GBP Acc

+/- Yield -

Fund

Bid

Offer

+/- Yield

Fund

Bid

Fund

Bid

Global ex UK Core Equity Index ( No Trail) Acc F

164.24

-

-2.18 1.34

Fusion Growth + Acc

55.68

-

-0.49 0.00

2.73 -0.03 0.00

Global ex UK Enhanced Index ( No Trail) Acc F

190.64

-

-2.57 1.77

Fusion Growth + Inc

55.68

-

-0.50 0.00

1.28 0.00 0.00

Gbl Fin Cap No Trail Acc

173.68

-

-0.44 4.35

Fusion Income Acc...C

52.92xd

-

-0.21 2.50

Hermes Sourcecap EU Alpha Fund Class F Dis £

1.19

1.19 -0.01 1.80

-0.33 0.00

Hermes Sourcecap EU Alpha Fund Class R Acc €

2.73

0.00 0.00

Hermes Sourcecap EX UK Fund Class F Acc £

1.28

Offer

+/- Yield

Offer

+/- Yield

Fund

Bid

Offer

+/- Yield

Kames Capital VCIC

(IRL)

Fund

Bid

Offer

+/- Yield

-

-0.20

Neubrg.Berman US Core PA

$ 14.32

-

-0.19 0.00

Sands US Growth PA

€ 13.85

-

-0.25 0.00

Sands US Growth PA

$ 16.75

-

-0.29 0.00

P.O.Box 100, Swindon SN1 1WR 0844 800 9401 Authorised Inv Funds

Will.Blair Gbl. Ldrs PA

€ 13.84

-

-0.15 0.00

Growth Fd Acc

Will.Blair Gbl. Ldrs PA

$ 12.82

-

-0.15 0.00

-

-0.05

Hermes Sourcecap EX UK Fund Class R Acc €

2.78

2.78 -0.03 0.00

Gbl Fin Cap No Trail Inc

151.98

-

-0.38 4.48

Fusion Income Inc...C

51.20xd

-

-0.20 2.54

-

0.20 0.48

Hermes UK Small & Mid Cap Fund Class F Acc £

1.42

1.42 -0.02 0.00

Global Opportunities (No Trail) Acc

F

230.87

-

-4.27 1.01

Global Allocation A-Net Acc

53.03

-

-0.38 0.66

Absolute Return Bond B GBP Acc

1073.24

-

-0.33

GAM Star Cont European Eqty GBP Acc F £

3.20

-

0.01 0.00

Hermes UK Small & Mid Cap Fund Class R Acc €

3.96

3.96 -0.07 0.00

Global Smaller Companies (No Trail) Acc

F

231.09

-

-2.80 0.41

Global Allocation A-Net Inc

52.69

-

-0.37 0.66

High Yield Global Bond A GBP Inc

536.11

-

-2.28 3.70

GAM Star Cred Opportunities GBP Acc £ 12.31

-

0.00 4.23

Hermes US SMID Equity Fund Class F Acc £

1.47

1.47 -0.03 0.00

Global Smaller Companies (No Trail) Inc

F

222.28

-

-2.69 0.41

Global Equity Acc

936.90

-

-12.00 0.49

High Yield Global Bond B GBP Inc

1114.06

-

-4.71 4.22

GAM Star Defensive GBP Acc

£ 10.68

-

-0.05 0.00

Hermes US SMID Equity Fund Class R Acc €

2.91

2.91 -0.08 0.00

Global Targeted Rets (No Trail) Acc

111.65

-

-0.13 0.00

Global Equity Inc

69.72

-

-0.89 0.49

Investment Grade Global Bd A GBP Inc

560.76

-

0.18 2.34

GAM Star Discretionary FX USD Acc F $ 11.85

-

-0.29 0.00

161.38

-

-2.18 3.41

Global Bond exUK Acc

248.10

-

0.80 0.77

Kames Global Equity Income B GBP Acc £ 10.95

-

-0.06 0.00

GAM Star Dynamic Gbl Bd USD Acc H $ 10.60

-

0.08 1.43

196.40

-

0.70 0.77

Kames Global Equity Income B GBP Inc £ 10.67

-

-0.06 2.46

155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900 Property & Other UK Unit Trusts

GAM Star Emerging Asia USD Class ACCU $ 12.72

-

0.10 0.48

89.31

-

-1.20 0.51

Strategic Global Bond A GBP Inc

1105.25

-

-1.17 2.15

Lothbury Property Trust GBP

GAM Star Emerg. Market Rates USD Acc F $ 11.44

-

-0.07 0.00

Strategic Global Bond B GBP Inc

626.93

-

-0.65 2.64

GAM Star European Eqty USD Acc F $ 21.85

-

0.10 0.00

GAM Star Flexible Gbl Port GBP Ac £ 12.36

-

-0.08 0.00

GAM Star GAMCO US Equity Acc F $ 13.42

-

-0.25 0.00

GAM Star Global Conv Bond USD Acc F $ 11.16

-

-0.03 0.00

Norfolk House, 31 St James's Square, London, SW1Y 4JR FCA Recognised

GAM Star Global Rates USD Acc F $ 12.23

-

-0.14 0.00

Env Mkts (Ire) Stl A

£

2.16

-

-0.02

-

GAM Star Global Selector USD Acc F $ 14.74

-

-0.07 0.00

Env Mkts (Ire) Euro A

€

1.87

-

-0.02

-

GAM Star Japan Eqty USD Acc F $ 12.23

-

-0.12 0.38

Env Mkts (Ire) USD A

$

1.77

-

-0.02

-

GAM Star Keynes Quant Strat USD Acc F $ 11.47

-

-0.07 0.00

GAM Star Local EM Rates and FX USD Acc $ 11.91

-

-0.06 0.00

GAM Star North of South EM Equity Acc F $ 11.84

-

-0.05 0.02

GAM Star Technology USD Acc F $ 15.58

-

-0.19 0.00

GAM Star US All Cap Eqty USD Acc F $ 13.68

-

-0.28 0.00

GAM Star Worldwide Eqty USD Acc F $ 3264.53

-

-22.22 0.35

Hermes Property Unit Trust

(UK)

£

5.17

5.50 0.06 4.02

(GSY)

Regulated $ 240.12 245.02 3.21 0.00

Taurus Emerging Fund Ltd

F

122.48

-

-1.66 3.49

Global Bond exUK Inc

F

178.01

-

-0.86 1.21

Global Consumer Trends Acc

Income & Growth (No Trail) Acc

F

210.08

-

-2.27 3.63

Global Consumer Trends Inc

85.08

-

-1.15 0.51

Income & Growth (No Trail) Inc

F

172.69

-

-1.87 3.72

Global Eq Income £ hdg Acc... C

65.44xd

-

-0.67 3.93

Income (No Trail) Acc

F

160.37

-

-2.20 3.43

Global Eq Income £ hdg Inc ... C

48.39xd

-

-0.50 4.02

Kleinwort Benson Bank

Income (No Trail) Inc

F

120.89

-

-1.66 3.51

Global Eq Income Acc... C

68.10xd

-

-0.58 3.86

Japan (No Trail) Acc

F

131.76

-

0.30 0.69

Global Eq Income Inc ... C

60.89xd

-

-0.51 3.97

Japanese Smaller Companies (No Trail) Acc F

160.15

-

1.29 0.00

Global Financials Acc

723.30

-

-7.40 0.72

14 St. George Street, Mayfair, London W1S1FE Dealing and enquiries: 0800 024 2400 Authorised Inv Funds Unit Trust Manager/ACD - Host Capital

Latin American (No Trail) Acc

F

126.69

-

-3.27 1.64

Global Financials Inc

41.50

-

-0.42 0.72

HC KB Capital Growth A Acc

164.02

-

-1.84 1.36

Latin American (No Trail) Inc

F

115.69

-

-3.00 1.66

Global High Yield Bond A Mth Net Inc

38.71xd

-

-0.18 7.13

HC KB Capital Growth A Inc

155.98

-

Managed Growth (No Trail) Acc

F

186.59

-

-2.25 1.28

Global High Yield Bond Acc ... C

97.64xd

-

-0.46 7.04

HC KB Capital Growth B Acc

164.85

INDIA VALUE INVESTMENTS LIMITED (INVIL)

Managed Growth (No Trail) Inc

F

173.41

-

-2.09 1.30

Global High Yield Bond Inc ... C

38.86xd

-

-0.19 7.14

www.invil.mu Other International Funds

HC KB Capital Growth B Inc

Managed Income (No Trail) Acc

F

182.75

-

-1.88 2.97

Global Property Secs Acc

57.26

-

-0.18 0.82

Managed Income (No Trail) Inc

F

153.30

-

-1.58 3.03

Global Property Secs Inc

49.71

-

-0.15 0.83

Monthly Income Plus (No Trail) Acc

F

167.83

-

-0.37 4.80

Income Fd A - Net Acc

49.81xd

-

-0.13

Monthly Income Plus (No Trail) Inc

F

Impax Asset Management

NAV

(IRL)

£

6.73

-

-0.07 0.00

Intrinsic Value Investors (IVI) LLP GYS Investment Management Ltd

High Income (No Trail) Inc

Hong Kong & China (No Trail) Acc

Property & Other UK Unit Trusts Property

F

(IRL) 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 FCA Recognised IVI European Fund EUR

€ 15.46

-

-0.03 0.00

IVI European Fund GBP

£ 16.77

-

0.05 0.32

£ 1624.35 1742.16 37.54 3.31

-

-0.0729 0.72

-

-0.0229 0.49

-1.75 1.38

Dragon Growth Fund Class A F

$ 1.9358

-

-0.0152 0.62

-

0.00 1.10

Dragon Growth Fund Class AA HKDHK$ 9.3785

-

-0.0737 0.59

Morant Wright Funds (Ireland) PLC

159.26

-

0.00 1.07

M & G Securities (1200)F

(UK)

Emerging Eastern Europe Fund Class AA F $ 1.4455

-

-0.0348 0.42

FCA Recognised

HC KB Capital Growth C Acc

171.88

-

0.00 2.01

-

-0.0809 0.76

159.94

-

0.00 2.00

-

European Growth Fund Class A F $ 10.5074

-

-0.0339 1.21

HC KB Enterprise Equity Income A Inc

109.25

-

-0.65 3.78

PO Box 9039, Chelmsford, CM99 2XG www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196 Authorised Inv Funds

Emerging Eastern Europe Fund Class A F $ 3.3626

HC KB Capital Growth C Inc

-

European Growth Fund Class AA F $ 0.7611

-

-0.0025 0.59

Global Contrarian Fund Class AA F $ 0.9330

-

-0.0035 0.00

Global Property Fund Class AA F $ 0.9987

-

-0.0035 0.75

Global Resources Fund Class AA F $ 0.7961

-

-0.0179 0.00

Greater China Opportunities Class AA $ 0.9868

-

-0.0066

Healthcare Fund Class AA F

$ 1.8779

-

0.0001 0.00

India Equity Fund Class AA F

-0.24 4.90

Income Fd A - Net Inc

48.56xd

-

-0.13

HC KB Enterprise Equity Income A Acc

156.16

-

-0.93 3.69

-

-1.39 0.78

Japan Acc

241.90

-

1.30 0.00

HC KB Endeavour Multi Asset Balanced A Acc

129.48

-

-0.71 0.81

Pacific (No Trail) Inc

F

168.22

-

-1.32 0.84

Japan Inc

58.23

-

0.32 0.00

HC KB Endeavour Multi Asset Balanced A Inc

123.58

-

-0.68 0.81

Tactical Bond (No Trail) Acc

F

139.96

-

-0.16 2.26

Multi-Asset Inc A Mth Net Inc

65.23xd

-

-0.45 3.80

HC KB Enterprise Fixed Income A Acc

121.93

-

-0.20 3.44

Tactical Bond (No Trail) Inc

F

119.90

-

-0.13 2.29

Multi-Asset Inc Acc... C

84.14xd

-

-0.58 3.74

HC KB Enterprise Fixed Income A Inc

110.89

-

-0.18 3.44

-

0.14 0.00

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

UK Enhanced Index (No Trail) Acc

F

382.21

-

-4.58 3.38

Multi-Asset Macro Inc

58.41

-

0.14 0.00

UK Enhanced Index (No Trail) Inc

F

246.12

-

-2.95 3.46

Multi-Manager Growth Acc

684.00

-

-6.20 0.40

Regulated Kleinwort Benson Elite PCC Ltd

Kleinwort Benson (CI) Inv Man Ltd

(GSY)

Charifund Inc

1420.00

-

-11.89 4.70

Charifund Acc

18698.14

-

-156.62 4.56

M&G Corporate Bond A Acc

62.20

-

0.21 3.23

M&G Corporate Bond A Inc

40.04

-

0.13 3.23

M&G Dividend A Inc

58.85

-

-0.85 4.35

M&G Dividend A Acc

564.02

-

-8.13 4.20

M&G Episode Growth X Inc

49.54xd

-

-0.66 1.89

M&G Episode Income A Acc

137.43xd

-

-0.66 3.36

M&G Episode Income A Inc

118.35xd

-

-0.56 3.43

720.23

-

-5.44 4.40

Global Multi-Strategy Managed

$

4.84

5.21 -0.03 0.00

UK Growth (No Trail) Acc

F

139.83

-

-1.91 2.15

Multi-Manager Growth Inc

641.30

-

-5.80 0.40

EUR Currency B EUR Acc Non-Rpt €

0.98

-

0.00 0.00

M&G Extra Income A Inc

UK Multi-Strategy Managed

£

4.78

5.15 -0.01 0.00

UK Growth (No Trail) Inc

F

116.97

-

-1.60 2.21

Natural Resources Acc

472.50

-

-15.90 0.04

EUR Fixed Income B EUR Income Rpt €

1.01

-

0.00 0.00

M&G Extra Income A Acc

5691.15

-

-43.01 4.29

EU Multi-Strategy Managed

€

2.79

3.01 0.03 0.00

UK Smaller Companies Equity (No Trail) Acc

F

238.97

-

-2.53 1.18

Natural Resources Inc

33.49

-

-1.13 0.02

GBP Currency B GBP Acc Non-Rpt £

0.99

-

0.00 0.00

M&G Global Basics A Inc

635.20

-

-6.55 0.29

Global Bond USD

$

3.60

3.88 -0.02 0.00

UK Smaller Companies Equity (No Trail) Inc

F

223.03

-

-2.36 1.20

New Europe Acc

147.30

-

-1.80 2.68

International Bond B GBP Acc Non-Rpt £

0.92

-

-0.01 0.00

M&G Global Basics A Acc

958.95

-

-9.88 0.29

UK Strategic Income (No Trail) Acc

F

680.14

-

-8.28 3.59

New Europe Inc

35.91

-

-0.43 2.79

International Equity B GBP Acc Non-Rpt £

1.26

-

0.00 0.00

M&G Global Dividend Fund A Acc

196.68

-

-2.69 3.22

Genesis Asset Managers LLP

UK Strategic Income (No Trail) Inc

F

518.00

-

-6.31 3.68

Portfolio Acc

190.20

-

-0.70 1.03

Multi Asset Balanced B EUR Acc Non-Rpt €

1.09

-

0.00 0.00

M&G Global Dividend Fund A Inc

160.13

-

-2.17 3.29

Other International Funds

US Equity (No Trail) Acc

217.61

-

-4.17 0.04

Sterling Corporate Bond Acc

82.07xd

-

0.37 2.87

Multi Asset Balanced B GBP Acc Non-Rpt £

1.11

-

-0.01

M&G Glbl Emrgng Mkts A Acc

203.62

-

-4.38 0.72

Sterling Corporate Bond Inc

52.36xd

-

0.23 2.89

Multi Asset Balanced B GBP Income Rpt £

1.39

-

0.00 0.26

M&G Glbl Emrgng Mkts A Inc

198.31

-

-4.29 0.72

Strategic Bond Acc

68.21xd

-

-0.20 3.45

Multi Asset Balanced B USD Acc Non-Rpt $

1.10

-

0.00 0.00

M&G Global Macro Bond Fund A Acc

106.92xd

-

0.02 0.72

Strategic Bond Inc

57.84xd

-

-0.17 3.48

Multi Asset Balanced C GBP Income Rpt £

1.43

-

0.00 1.13

M&G Global Macro Bond Fund A Inc

74.43xd

-

0.02 0.72

UK Active Index + E Acc

265.40

-

-3.40 2.91

Multi Asset Conservative B EUR Acc Non-Rpt €

1.03

-

0.00 0.00

M&G Global High Yield Bond X Inc

50.19xd

-

-0.24 4.83

607.62 639.60 -3.12

-

Choices Equity

677.25 712.90 -4.49

-

Freedom With Pfts Long-Tm

217.50 228.94 0.01

-

Freedom With Pfts Short-Tm

195.94 206.24 0.01

-

Freedom Managed

353.71 372.32 -1.56

-

Freedom Equity

395.18 415.98 -2.10

-

Corp Pens Mananged

214.50 214.50 -1.10

-

Corp Pens Equity

221.09 221.09 -1.46

-

Corp Pens Fixed Interest

292.73 292.73 0.10

-

Corp Pens Index Linked

353.13 353.13 0.19

-

Corp Pens Deposit

190.16 190.16 0.00

-

Corp Pens Protector

347.33 347.33 0.68

-

Corp Pens UK Index Tracker

£

1.90

1.90 -0.01

-

Guardian Linked Life Assurance Ltd Managed Acc

£ 17.69 18.63 -0.08

-

Equity Acc

£ 32.11 33.80 -0.19

-

Fixed Interest Acc

£ 16.86 17.74 0.01

-

International Acc

£ 12.96 13.64 -0.07

-

Nth American Acc

£

6.68

7.03 -0.01

-

Pacific Acc

£

3.66

3.85 -0.05

-

European Acc

£

3.28

3.46 -0.03

-

Property Acc

£

6.71

7.06 0.00

-

Index-Linked Acc

£

6.65

7.00 0.00

-

Deposit Accum

£

4.46

4.69 0.00

-

Guardian Pensions Management Ltd Pens. Managed Acc.

£ 22.95 24.16 -0.12

-

Pens. Equity Acc.

£ 34.11 35.91 -0.23

-

HPB Assurance Ltd Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 International Insurances

Asian Acc

F

Asian Inc

F

442.54

Asian Equity Income Acc

F

Asian Equity Income Inc

F

-

-4.05 0.71

Invesco

60.60

-

-0.60 3.82

Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 FCA Recognised Invesco Management SA

52.53

-

-0.52 3.93

-

-0.15 0.00

Balanced Risk 8 Acc

55.05

-

-0.21 0.04

Balanced Risk 10 Acc Childrens Acc

F

Corporate Bd Acc (Gross)

F

Corporate Bd Inc (Gross)

F

Corporate Bond Acc

F

Corporate Bond Inc

F

Distribution Acc

F

Distribution Acc (Gross) Distribution Inc

F

F F

Distribution Inc (Gross) Emerging Countries Acc

F

Emerging Countries Inc

F

Emerging European Inc

F

European Equity Acc

F

European Equity Inc

F

56.88

-

-0.27 0.27

385.74

-

-5.35 1.71

203.43

-

0.23 3.73

89.57

-

0.10 3.84

182.26

-

0.20 3.75

89.44

-

0.09 3.84

107.58

-

-0.43 4.13

122.12

-

-0.49 4.11

64.80

-

-0.26 4.20

64.80

-

-0.26 4.20

248.22

-

-3.04 0.49

225.83

F

Emerging European Acc

-

-2.77

-

33.33

-

-0.43 2.80

31.19

-

-0.40 2.87

795.31

-

-8.37 2.30

672.88

-

-7.08 2.35

European Equity Income Acc

F

70.17

-

-0.78 3.23

European Equity Income Inc

F

55.02

-

-0.61 3.31

European High Income Acc

F

79.81

-

-0.02 3.46

European High Income Inc

F

59.67

-

-0.01 3.52

European Opportunities Inc

F

73.17

-

-0.49 0.18

European Opportunities Acc

F

74.92

-

-0.50 0.18

157.74

-

-1.21 0.00

129.12

-

0.17 1.07

European Smlr Cos Acc

0.53

-

0.00 0.00

Global Bd Acc (Gross)

Holiday Property Bond Ser 2

£

0.62

-

0.00 0.00

Global Bd Inc (Gross)

F F

80.45

-

0.11 1.08

Global Bond Acc

F

F

121.59

-

0.16 1.07

Global Bond Inc

F

80.40

-

0.11 1.08

Glbl Distribution Acc

51.48

-

-0.21 4.58

-0.41 0.00

Glbl Distribution Acc (Gross)

51.72

-

-0.21 4.58

Hamon Investment Group Other International Funds -

397.49

53.32

£

$ 25.21

-4.52 0.71

Balanced Risk 6 Acc

Holiday Property Bond Ser 1

Asian Market Leaders - USD

-

Asian Market Leaders - GBP

£ 12.53

-

-0.23 0.00

Glbl Distribution Inc

50.55

-

-0.21 4.60

Greater China - USD

$ 10.51

-

-0.17 0.00

Glbl Distribution Inc (Gross)

50.56

-

-0.20 4.60

Greater China - GBP

£

-

-0.08 0.00

Global Equity (acc)

F

449.72

-

-7.47 0.50

Selected Asian P'folio

$ 48.45 48.46 -0.45 0.00

Global Equity (inc)

F

410.18

-

-6.82 0.50

4.22

Hargreaves Lansdown Fd Mgrs (1100)F

(UK) PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT Enquiries 0117 90090000 Authorised Inv Funds Hargreaves Lansdown Funds Unit Trust 249.98 262.99 -1.87 0.35

Multi-Manager Spec Sits Tst HL Multi-Manager Income & Growth Trust (Accumulation units)

155.01 163.08 -0.79 4.61

HL Multi-Manager Income & Growth Trust (Income units)

96.61 101.63 -0.49 4.73

Multi-Manager Bal Mgd Tst

175.41 184.54 -0.99 1.05

HL Multi-Manager Equity & Bond Trust (Income units)

106.18 111.57 -0.32 2.94

HL Multi-Manager Equity & Bond Trust (Accumulation units)

140.81 147.96 -0.43 2.89

Multi-Manager Strategic Bond Trust A Acc

166.79 171.94 -0.05 2.64

Multi-Manager Strategic Bond Trust A Inc

141.11 145.47 -0.03 2.68

Global Equity Income Acc

F

115.58

-

-0.80 3.30

Global Equity Income Inc

F

97.13

-

-0.68 3.38

85.62

-

-0.22 4.36

Gbl Financial Capital Acc Gbl Financial Capital Inc

74.91

-

-0.19 4.49

Gbl Financial Cap Acc Gross

88.70

-

-0.23 4.88

Gbl Financial Cap Inc Gross

75.06

-

-0.19 5.07

90.14

-

-1.66 0.49

Global Opportunities Acc

F

Global Smaller Cos Acc

F

1589.10

-

-19.23 0.00

Global Smaller Cos Inc

F

1520.11

-

-18.41 0.00

55.50

-

-0.07 0.00

Global Targeted Rets Acc High Income Acc

F

758.23

-

-10.23 3.42

High Income Inc

F

431.76

-

-5.83 3.51

High Yield Fund Acc

106.78

-

-0.11 4.23

High Yield Fund Acc (Gross)

123.41

-

-0.12 4.21

44.03

-

-0.04 4.32

High Yield Fund Inc High Yield Fund Inc (Gross)

Haussmann Other International Funds Haussmann Cls A Haussmann Cls C Haussmann Cls D

F

Hong Kong & China Acc $ 2704.92 € 2365.06 SFr 1267.77

-

52.90 0.00 46.34 0.00 24.73 0.00

Heartwood Wealth Management Limited

(IRL)

Regulated Heartwood Caut Multi Asset B Acc

139.35

-

-0.29 0.00

44.09

-

-0.05 4.32

450.94

-

-2.19 0.75

Income & Growth Acc

F

896.49

-

-9.72 3.64

Income & Growth Inc

F

403.89

-

-4.38 3.74

Income Acc

F

2931.82

-

-40.32 3.44

Income Inc

F

1678.93

-

-23.09 3.53

Japan Acc

F

278.58

-

0.63 0.18

63.16

-

0.51 0.00

F

Japanese Smlr Cos Acc Latin America Acc

F

131.63

-

-3.40 1.07

Latin America Inc

F

110.71

-

-2.86 1.08

Managed Growth Acc

F

154.51

-

-1.87 0.82

(UK) PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832 www.henderson.com Authorised Inv Funds

Managed Growth Inc

F

129.41

-

-1.56 0.83

Managed Income Acc

F

153.05

-

-1.58 2.99

Managed Income Inc

F

95.74

-

-0.98 3.05

Asia Pacific Capital Growth A Acc

Money Acc

Henderson Global Investors

Asian Dividend Income Inc

735.90

-

-7.70 0.85

92.34 97.45 0.01 6.03

F

Money Acc (Gross)

F F

90.03

-

0.00 0.28

95.11

-

0.00 0.28

292.33

-

-0.65 4.81

340.64

-

-0.74 4.79

111.63

-

111.78

(LUX)

Invesco Active Multi-Sector Credit Fund A €

2.88

-

0.00 0.00

$ 15.58

-

-0.05 3.41

Invesco Asia Consumer Demand Fund A income $ 13.66

-

-0.10 0.18

Invesco Asia Infrastructure (A)

$ 13.20

-

0.02 1.53

Invesco Asia Opportunities Equity A $ 101.97

-

-1.21 0.00

Invesco Balanced Risk Allocation Fund A € 15.22

-

-0.05 0.00

Invesco Capital Shield 90 (EUR) A € 11.93

-

-0.02 0.00

Invesco Emerging Europe Equity Fund A $

8.12

-

-0.11

Invesco Emerging Local Currencies Debt A Inc $

8.52

-

-0.04 5.62

Invesco Emerging Mkt Quant.Eq. A $ 10.77

-

-0.11 0.00

Invesco Energy A

$ 21.76

-

-0.84 0.00

Invesco Euro Corporate Bond Fund (A) € 17.24

-

0.01

Invesco Asia Balanced A dist

-

-

Invesco Euro Inflation Linked Bond A € 15.42

-

-0.06 0.00

Invesco Euro Reserve A

€ 322.89

-

0.00 0.00

Invesco European Bond A

€

6.77

-

0.00 0.00

Invesco European Growth Equity A € 20.98

-

-0.31 0.00

Invesco Global Absolute Return Fund A Class € 11.54

-

-0.06 0.00

Invesco Global Bond A Inc

5.65

-

0.01 1.10

Invesco Global Equity Income Fund A $ 59.16

-

-0.45 0.00

Invesco Global Inc Real Estate Sec A dist $

9.53

-

Invesco Global Inv Grd Corp Bond A Dist $ 11.99 Invesco Global Leisure A

$ 34.82

Invesco Global Smaller Comp Eq Fd A $ 52.84

$

1.12

-

-0.01 0.00

M&G Optimal Income A Acc

188.47

-

-0.16 2.65

Multi Asset Growth B GBP Acc Non-Rpt £

1.15

-

-0.01 0.00

M&G Recovery GBP A Inc

121.03

-

-1.85 0.92

Manulife Global Fund

UK Focus Acc

69.71

-

-0.93 1.00

Multi Asset Growth B GBP Income Rpt £

1.16

-

0.00 0.00

M&G Recovery GBP A Acc

269.89

-

-4.13 0.91

Other International Funds

UK Focus Inc

59.88

-

-0.80 1.00

Multi Asset Growth B USD Acc Non-Rpt $

1.13

-

-0.01 0.00

M&G Strategic Corp Bond A Inc

74.04

-

0.16 3.14

UK Higher Inc Acc ... C

844.20

-

-10.30 3.94

Sterling Fixed Income B GBP Income Rpt £

0.96

-

0.00 3.86

M&G Strategic Corp Bond A Acc

104.56

-

0.23 3.12

UK Higher Inc Inc ... C

511.50

-

-6.30 4.06

USD Currency B USD Acc Non-Rpt $

0.97

-

0.00 0.00

M&G Global Leaders GBP A Inc

187.12

-

-2.37 1.51

UK Managed Equity Acc

64.04xd

-

-0.72 2.11

M&G Global Leaders GBP A Acc

434.73

-

-5.49 1.49

UK Managed Equity Inc

54.73xd

-

-0.62 2.12

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

M&G UK Inflation Lnkd Corp Bnd A Acc

114.05

-

-0.34 0.15

UK Smaller Cos Acc

321.70xd

-

-3.00 0.00

M&G UK Inflation Lnkd Corp Bnd A Inc

112.41

-

-0.33 0.15

UK Smaller Cos Inc

62.47xd

-

-0.57 0.00

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

UK Strategic Eq Inc Acc ... C

141.90xd

-

-1.70 3.29

Lloydstrust Gilt

UK Strategic Eq Inc Inc ... C

95.25xd

-

-1.15 3.39

UK Strategic Gth Acc

102.70

-

-1.10 0.93

UK Strategic Gth Inc

96.96

-

-1.06 1.14

US Acc

687.20

-

-11.70 0.04

US Inc

95.11

-

-1.62 0.04

US Equity Income Acc ... C

118.10xd

-

-1.70 1.82

US Equity Income £ hdg Inc ... C

102.00xd

-

-1.50 1.94

US Equity Income Inc ... C

102.40xd

-

-1.40 1.85

US Select Acc

106.70

-

-1.80 0.00

US Select Inc

105.30

-

-1.80 0.00

US Smaller Cos Acc

359.40xd

-

-6.30 0.00

US Smaller Cos Inc

94.19xd

-

-1.66 0.00

(UK)

-0.13 0.00

UK Equity Fund for Charities I...C £ 2.711240 2.721710 -0.028350 3.49

Invesco Greater China Equity A

$ 46.38

-

-0.13 0.00

Bond Fund for Charities

Invesco India Equity A

$ 49.36

-

-0.56 0.00

Invesco Japanese Equity Adv Fd A ¥ 3492.00

-

-19.00 0.00

Jefferies Umbrella Fund 11 Rue Aldringen, L-1118 Luxembourg 00 352 468193626 FCA Recognised

(IRL)

Europe Convertible Bd A (Dis) - D - EUR F € 13.02

-

-0.01 1.08

Europe Convertible Bd B (Cap)

€ 14.81

-

-0.02 0.00

Global Convertible A (Dis) F

$ 19.11

-

-0.09 0.26

Global Convertible B (Cap) F

$ 22.70

-

-0.10 0.00

Global Convertible A Hdg GBP(Dis) F £ 12.72

-

-0.06 0.24

Global Convertible B Hdg GBP (Cap) F £ 14.95

-

-0.07 0.00

Global Convertible Hdg A (Cap) F $ 18.79

-

-0.09 0.27

$ 22.36

-

-0.11 0.00

Global Convertible A Hdg EUR(Dis) F € 15.47

Global Convertible B Hdg (Dis) F

-

-0.18 0.25

Global Convertible B Hdg EUR (Cap) F € 16.78

-

-0.08 0.00

Global Convertible A Hdg CHF (Dis) FSFr 22.43

-

-0.11 0.22

Global Convertible B Hdg CHF (Cap) FSFr 24.74

-

-0.12 0.00

Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200 FCA Recognised Invesco Stlg Bd A QD F

£

2.62

-

0.00 3.75

Invesco Asian Equity A

$

6.66

-

-0.07 0.10

Invesco ASEAN Equity A

$ 102.72

-

-0.54 0.59

Invesco Bond A

$ 27.67

-

0.10 2.10

Invesco Continental Eurp Small Cap Eqty A $ 187.11

-

-1.46 0.00

Invesco Emerging Markets Equity A $ 39.00

-

-0.51 0.00

Invesco Emerging Markets Bond A $ 21.10

-

-0.10 4.61

Invesco Continental European Equity A €

-

-0.14 0.08

-

0.11 1.58

Invesco Global Small Cap Equity A NAV $ 118.94

-

-1.50 0.00

[email protected], www.jbfundnet.com Regulated

Invesco Global High Income A NAV $ 12.64

-

-0.06 5.35

JB BF ABS-EUR B

€ 105.54

-

0.00 0.00

Invesco Gbl R/Est Secs A GBP F F £

7.70

-

-0.01 0.77

JB BF Abs Ret Def-EUR B

€ 111.86

-

-0.11 0.00

$ 128.66

-

-1.81 0.00

JB BF Abs Ret EM-USD B

$ 117.84

-

-0.40 0.00

Swiss & Global Asset Management

(LUX)

Invesco Global Select Equity A

$ 13.08

-

-0.22 0.00

JB BF Abs Ret-EUR B

€ 131.12

-

-0.20 0.00

Invesco Jap Eqty Core A

$

1.68

-

0.00 0.00

JB BF Abs Ret Pl-EUR B

€ 130.19

-

-0.27 0.00

Invesco Japanese Equity A

$ 17.48

-

0.06 0.00

JB BF EM Corporate-USD B

$ 106.51

-

-0.28 0.00

Invesco Korean Equity A

$ 26.64

-

-0.48 0.00

JB BF EM Infl Link-USD B

$ 97.64

-

-0.96 0.00

Invesco PRC Equity A

$ 50.19

-

-0.27 0.11

JB BF EM Inv Grade-USD B

$ 100.73

-

-0.33 0.00

Invesco Pacific Equity A

$ 48.79

-

-0.41 0.00

JB Emerging (EUR)-EUR B

€ 333.25

-

-2.09 0.00

Invesco Global Technology A

$ 15.15

-

-0.27 0.00

JB Emerging (USD)-USD B

$ 405.88

-

-2.91 0.00

Invesco UK Eqty A

£

-

-0.11 1.14

JB BF Local EM-USD B

$ 293.82

-

-1.98 0.00

JB BF Total Ret-EUR B

€ 99.35

-

-0.15 0.00

JB EF Abs Ret Eur-EUR B

€ 117.80

-

0.08 0.00

-0.25 4.92

JB EF Euro Value-EUR B

€ 179.34

-

-1.86 0.00

-

-0.24 4.92

JB EF Japan-JPY B

¥ 15876.00

-

-92.00 0.00

-

-1.40 4.25

Monthly Income Plus Acc

149.50

-

-0.90 4.32

Monthly Income Plus Acc (Gross)

China Opportunities A Acc

808.20

-

-7.20 0.53

Monthly Income Plus Inc

Emerging Markets Opportunities A Acc

149.60

-

-1.70 0.34

Monthly Income Plus Inc (Gross)

European Growth A Acc

156.60

-

-0.50 0.83

Pacific Acc

F

959.79

-

-7.57 0.33

JB EF Luxury B-EUR B

€ 209.31

-

-1.37 0.00

European Selected Opportunities A Acc

1228.00

-

-3.00 0.51

Pacific Inc

F

881.57

-

-6.94 0.33

JB Ms EF Special Val. EUR/A

€ 132.33

-

-1.13 0.81

European Special Situations A Acc

83.43

-

-0.22 1.18

Tactical Bond Acc

F

68.64

-

-0.08 1.78

JB Strategy Balanced-CHF/B

SFr 154.03

-

-0.83 0.00

Fixed Interest Monthly Income A Inc

22.06 23.13 -0.04 6.51

Tactical Bond Inc

F

59.90

-

-0.06 1.80

JB Strategy Balanced-EUR

€ 152.43

-

-0.90 0.00

JB Strategy Balanced-USD/B

$ 132.14

-

-0.84 0.00

SFr 96.60

-

-0.71 0.00

Global Care Growth A Inc

191.60

-

-2.70 0.12

Tactical Bond Acc (Gross)

F

71.09

-

-0.08 1.77

Global Equity Income A Inc

48.65

-

-0.44 3.75

Tactical Bond Inc (Gross)

F

59.94

-

-0.07 1.80

JB Strategy Growth-CHF/B

Global Growth Fund

1887.76 1972.35 -26.77 0.00

UK Aggressive Acc

F

195.59

-

-3.13 1.39

Invest AD

Global Strategic Capital Acc

178.70

-

-1.20 0.00

UK Aggressive Inc

F

165.64

-

-2.64 1.41

JB Strategy Inc-CHF/B

Global Technology A Acc

883.00

-

-12.70 0.00

UK Growth Acc

F

531.10

-

-7.28 1.70

Client services: +971 2 692 6101 [email protected] Other International Funds

Multi-Manager Absolute Return A Acc

134.00

-

-0.30 0.00

UK Growth Inc

F

342.76

-

-4.70 1.72

Invest AD - Iraq Opportunity Fund $ 74.23

0.14 0.00

Multi-Manager Active A Acc

168.80

-

-1.30 0.00

UK Smaller Cos Equity Acc

F

737.41

-

-7.81 0.64

Multi-Manager Distribution A Inc

128.50

-

-0.60 2.44

UK Smaller Cos Equity Inc

F

568.72

-

-6.02 0.64

F

172.02

-

F

131.00

-

JB Strategy Growth-EUR

€ 113.46

-

-0.90 0.00

SFr 123.79

-

-0.43 0.00

JB Strategy Inc-EUR/B

€ 159.03

-

-0.62 0.00

JB Strategy Inc-USD/B

$ 149.22

-

-0.61 0.00

Asian (No Trail) Acc

F

184.60

-

-1.88 1.19

Asian (No Trail) Inc

F

167.85

-

-1.72 1.21

Kames Capital ICVC

F

123.48

-

-1.23 3.80

0.10 5.90

Asian Equity Income (No Trail) Inc

107.05

-

-1.07 3.91

-2.70 0.17

Balanced Risk 6 No Trail Acc

108.15

-

-0.31 0.20

Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA 0800 45 44 22 www.kamescapital.com Authorised Funds

111.63

-

-0.43 0.45

JPMorgan Asset Mgmt (1200)F 60 Victoria Embankment, London EC4Y 0JP Brokerline: 0800 727 770, Clients: 0800 20 40 20 Authorised Inv Funds JPM Retail OEIC (A class unless stated)

Sterling Bond Inc Strategic Bond A Inc UK & Irish Smaller Companies A Acc

61.99 64.76 -0.04 3.03 128.50 517.00

-

Asian Equity Income (No Trail) Acc

UK Absolute Return A Acc

141.60

-

-0.20 0.00

Balanced Risk 8 No Trail Acc

UK Alpha A Acc

102.60

-

-1.40 1.07

Balanced Risk 10 No Trail Acc

115.34

-

-0.55 0.67

UK Equity Income A Inc

592.10

-

-7.90 3.44

Corporate Bond (No Trail) Acc

F

161.90

-

0.18 3.99

-6.50 2.03

Corporate Bond (No Trail) Inc

F

118.23

-

0.13 4.08

UK Index A Acc

479.70

-

UK Property A Acc

193.08 203.24 0.05 4.04

Distribution (No Trail) Acc

UK Property A Inc

97.68 102.81 0.03 4.16

Distribution (No Trail) Inc

F

164.28

-

-0.66 4.11

F

112.64

-

-0.45 4.19

UK Tracker A Acc

218.90

-

-3.00 1.44

Emerging Countries (No Trail) Acc

F

161.94

-

-1.98 0.99

US Growth A Acc

742.30

-

-12.60 0.00

Emerging Countries (No Trail) Inc

F

152.63

-

-1.86 1.00

Emerging European (No Trail) Acc

F

69.03

-

-0.88 3.42

Emerging European (No Trail) Inc

F

62.92

-

-0.81 3.52

European Equity (No Trail) Acc

F

139.77

-

-1.47 2.83

European Equity (No Trail) Inc

F

118.05

-

-1.24 2.91

European Equity Income (No Trail) Acc

F

143.88

-

-1.60 3.23

European Equity Income (No Trail) Inc

Hermes Investment Funds Plc

(IRL) Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121 FCA Recognised Hermes Active UK Inflation Fund Class F Acc £

1.28

1.28 0.01 0.00

Hermes Asia Ex-Japan Equity Fund Class F Acc £

1.48

1.48 -0.01 0.00

Hermes Asia Ex-Japan Equity Fund Class R Acc €

2.98

2.98 -0.04 0.00

Hermes Global Emerging Markets Fund Class F Acc £

1.18

1.18 -0.01 0.00

Hermes Global Emerging Markets Fund Class R Acc €

2.76

2.76 -0.05 0.00

Hermes Global Equity Fund Class F Acc £

1.44

1.44 -0.02 0.00

Hermes Global Equity Fund Class R Acc €

3.50

3.50 -0.07 0.00

Hermes Global ESG Equity Fund Class F Acc £

1.09

1.09 -0.02

Hermes Global High Yield Bond Fund Class F Acc £

1.16

1.16 0.00 0.00

Hermes Global High Yield Bond Fund Class R Acc €

2.79

2.79 -0.02 0.00

Hermes Multi Strategy Credit Fund Class F Acc Hed £

1.01

1.01 0.00

Hermes Sourcecap EU Alpha Fund Class F Acc £

1.21

1.21 -0.01 0.00

-

-

F

112.85

-

-1.25 3.30

European High Income (No Trail) Acc

F

163.81

-

-0.04 3.46

European High Income (No Trail) Inc

F

122.48

-

-0.03 3.52

Invesco Perpetual High Yield Fund acc (No trail)

220.27

-

-0.22 4.30

Invesco Perpetual High Yield Fund inc (No trail)

169.17

-

-0.17 4.39

European Opportunities (No Trail) Acc

F

156.14

-

-1.02 0.75

European Opportunities (No Trail) Inc

F

148.18

-

-0.97 0.75

European Smaller Companies (No Trail) Acc

F

192.83

-

-1.48 0.54

Global Balanced Index (No Trail) Acc

F

151.37

-

-1.38 1.80

Global Bond (No Trail) Acc

F

136.38

-

0.17 1.31

Global Bond (No Trail) Inc

F

124.72

-

0.17 1.32

Glbl Distribution Acc (No Trail)

103.25

Glbl Distribution Inc (No Trail) Global Equity (No Trail) acc

F

Global Equity (No Trail) inc

F

-

-0.42

-

101.39

-

-0.41

197.60

-

-3.28 1.03

-

184.92

-

-3.08 1.04

Global Equity Income (No Trail ) Acc

F

237.98

-

-1.66 3.29

Global Equity Income (No Trail) Inc

F

200.00

-

-1.40 3.37

(UK)

(UK)

£

1.06

-

-0.01

-

Diversified Income B Inc

£

1.02

-

-0.01

-

Ethical Cautious Managed A Acc

155.61

-

-0.74 1.64

Ethical Cautious Managed A Inc

130.40

-

-0.62 1.66

Ethical Corporate Bond A Acc

192.05

-

0.69 3.52

America Eq Fd A - Net Acc

56.21xd

-

-0.79 0.00

Ethical Corporate Bond A Inc

111.11

-

0.39 3.52

America Eq Fd A - Net Inc

56.21xd

-

-0.78 0.00

Ethical Equity A Acc

158.91

-

-1.98 1.16

Asia Acc

119.70

-

-0.70 0.39

High Yield Bond A Acc

114.06

-

-0.46 4.22

Asia Inc

66.60

-

-0.41 0.39

High Yield Bond A Inc

53.81

-

-0.22 4.22

Cautious Managed Rt Acc

65.21xd

-

-0.19 0.25

Inflation Linked A Acc

127.64

-

-0.42 1.49

Cautious Managed Rt Inc

57.39xd

-

-0.16 0.25

Investment Grade Bond A Acc

156.45

-

0.51 3.42

Diversified Real Ret Acc

53.34

-

-0.03 0.92

Investment Grade Bond A Inc

116.73

-

0.39 3.42

Diversified Real Ret Inc

52.34

-

-0.03 0.94

Sterling Corporate Bond A Acc

68.99

-

0.21 3.18

Emerging Mkts Acc

149.20

-

-1.50 0.60

Sterling Corporate Bond A Inc

31.35

-

0.10 3.18

Emerging Mkts Inc

64.58

-

-0.64 0.61

Strategic Bond A Acc

179.40

-

-0.41 3.26

Emrg Mkts Inc Acc... C

55.27xd

-

-0.55 4.16

Strategic Bond A Inc

120.85

-

-0.27 3.26

Emrg Mkts Inc Inc... C

50.51xd

-

-0.50 4.24

UK Equity Absolute Return A Acc

117.23

-

0.02 0.00

Europe Acc

1004.00

-

-3.00 1.39

UK Equity A Acc

216.22

-

-2.29 1.25

Europe Inc

58.65

-

-0.19 1.40

UK Equity Income A Acc

189.34

-

-1.99 3.74

Eur Dynamic exUK Acc

155.70

-

-0.50 0.98

UK Equity Income A Inc

152.80

-

-1.60 3.83

Eur Dynamic exUK £ hdg Acc

166.60

-

-1.90 0.93

UK Opportunities A Acc

152.72

-

-1.56 1.12

72.06

-

-0.25 0.98

UK Smaller Companies A Acc

226.96

-

-2.29 0.32

Eur Smaller Cos Acc

406.10xd

-

-1.50 0.00

Eur Smaller Cos Inc

52.82xd

-

-0.19 0.00

Fusion Balanced Acc

53.29

-

-0.33 0.00

Fusion Balanced Inc

53.28

-

-0.33 0.00

Fusion Conservative Acc

52.79

-

-0.33 0.00

Fusion Conservative Inc

52.78

-

-0.32 0.00

Fusion Growth Acc

54.36

-

-0.43 0.00

Fusion Growth Inc

54.36

-

-0.43 0.00

Eur Dynamic exUK Inc

Kames Capital Investment Portfolios ICVC (UK) Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA 0800 45 44 22 www.kamescapital.com Authorised Funds £

1.09

-

0.00

-

Property Income B Inc

£

1.06

-

0.00

-

-

-0.04 2.09

Euro Strategic Bond A F

€ 43.28

-

0.00 0.00

European Currencies High Yield Bd A F € 21.23

-

0.06 0.00

European Equity Alpha A F

€ 40.62

-

-0.15 0.00

European Property A F

€ 29.67

-

-0.14 0.00

Eurozone Equity Alpha A F

€ 10.48

-

0.00 0.00

Global Bond A F

$ 40.20

-

-0.06 0.00

Global Brands A F

$ 93.74

-

-0.27 0.00

Global Convertible Bond A F

$ 42.02

-

-0.12 0.00

Global Property A F

$ 28.07

-

-0.05 0.00

Indian Equity A F

$ 34.30

-

-0.59 0.00

Latin American Equity A F

$ 50.66

-

-1.32 0.00

Short Maturity Euro Bond A F

€ 20.40

-

-0.01 0.00

-0.55 4.48

Cash

50.05

0.00 0.63

-

-47.44 4.34

US Growth AH F

€ 43.06

-

-0.03 0.00

North American

£ 15.5000

-

-0.2500 0.02

Cautious Inc

82.13 86.45 -0.33 1.65

M&G Property Portfolio A Acc

123.97 130.49 0.01 3.92

US Growth AX F

£ 39.74

-

0.55 0.00

Sterling Bond

£ 1.5020

-

0.0030 3.60

Defensive A Inc

120.91

-

-0.23 0.94

Property Portfolio A

117.13 123.29 0.01 4.00

US Property A F

$ 68.65

-

0.06 0.00

UK

£ 6.7320

-

-0.0590 1.50

Emerging Markets

233.84

-

-2.33 1.76

Property Portfolio X

117.13 117.13 0.01 4.00

ETF Global Growth A

155.71

-

-0.32 0.00

Lloyds Gilt Fund Quarterly Share £ 1.2830

-

0.0030 2.04

86.96

-

-0.31 0.00

£ 1.2330xd

-

0.0030 2.04

232.48

-

-0.11 0.23

A$ 172.9140

-

0.0090 1.63

American Fund

155.35 161.82 -2.77 0.00

€ 52.7220

-

0.0000 0.00

Corporate Bond

1332.94 1374.16 4.33 3.25

Lloyds Gilt Fund Limited Monthly Share Lloyds Money Fund Limited Australian Dollar

Lloyds Multi Strategy Fund Limited Conservative Strategy

£ 1.1140

-

0.0010 2.30

Growth Strategy

£ 1.4730

-

-0.0050 1.64

Aggressive Strategy

£ 1.7570

-

-0.0180 0.00

Global USD Growth Strategy

$ 1.3970

-

-0.0190 0.00

Dealing Daily

Lombard Odier Funds (Europe) S.A

(LUX)

www.loim.com Regulated Lombard Odier Funds

151.00 159.67 -0.83 0.08

Balanced

ETF Commodity A

M & G (Guernsey) Ltd

(GSY)

Regulated The M&G Offshore Fund Range

European Multi-Cap Extra Income

Majedie Asset Management LTD

(UK)

www.majedie.com Authorised Inv Funds UK Equity A

452.58

-

-1.84 3.17

UK Equity X Acc

139.81

-

-0.56 2.64

UK Focus A

545.03

-

-5.50 1.38

UK Focus X Acc

151.03

-

-1.53 1.89

UK Income A

159.60

-

-2.80 4.02

UK Income X Inc

146.00

-

-2.56 4.00

-

Far East Growth A Inc

161.64

Global

174.36 183.60 -1.09 0.00

Global Bond Inc

139.39 147.50 0.26 3.72

High Yield Fixed Interest

-

146.44

Nano-Cap Growth A Acc

98.2500 108.2500 -0.1408

Special Situations A Acc

992.95 1050.74 -8.40 0.25

UK Multi-Cap Growth A Inc

211.45 223.76 -2.78 0.47

UK Micro Cap Growth A

402.01 425.41 -13.99 0.00

US Multi-Cap Income

305.69

-

-

-4.05 0.18

MFM - Third Party Funds Junior Oils

98.50 104.23 -11.44 0.00

Junior Gold C Acc

26.27

-

-0.49 0.00

-

-0.33 0.00

101.36 106.14 -0.90 1.45

MFM SGWM Managed A Acc

122.79

-

-0.49 0.16

MFM Techinvest Special Situations Acc

103.41

-

-0.34 0.09

MFM Techinvest Technology Acc

360.01

-

0.08 0.00

Natixis International Funds (Dublin) I plc (IRL) Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Regulated

MFM UK Primary Opportunities A Inc

308.36

-

-2.84 1.38

Loomis Sayles Global Opportunistic Bond R/D (GBP) £ 13.87 13.87 0.00 1.29

Slater Investments Ltd - Investment Adviser MFM Slater Growth

353.87 375.46 -2.29 0.00

MFM Slater Income A Inc

146.72

MFM Slater Recovery

157.38 166.98 -1.21 0.00

SFr 17.67

-

-0.11 0.00

$ 11.14

-

-0.07 0.00

All Roads (GBP) PA

£ 11.34

-

-0.08 0.00

Marlborough International Management Limited (GSY)

All Roads (EUR) PA

€ 11.30

-

-0.08

Alpha Japan (EUR) PA F

€ 10.61

-

-0.21 0.00

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

Alpha Japan (CHF) PA F

SFr 13.34

-

-0.26 0.00

Alpha Japan (JPY) PA F

¥ 1257.00

-

-25.00 0.00

Alpha Japan (USD) PA F

$ 15.21

-

-0.29 0.00

Alternative Beta PA F

$ 120.08

-

-0.65 0.00

Em.Mk.Debt Fd.US Dollar

$ 120.40

-

-0.56 0.00

-

-0.09 0.00

Em.Mk.Debt Fd.Yen 1

¥ 10213.00

-

-48.00 0.00

6.65

(LUX)

Commodities (EUR) PA

€

6.70

-

-0.09 0.00

Em.Mk.Debt Fd.Yen 2

¥ 14882.00

-

-94.00 0.00

Commodities (USD) PA

$

6.85

-

-0.10 0.00

Em.Mk.Debt Fund Yen 3

¥ 10238.00

-

-49.00 0.00

¥ 14882.00

-

-94.00 0.00

€ 16.77

-

-0.06 0.00

Em.Mk.Debt Fund Yen 4

Convertible Bd Asia PA F

SFr 13.52

-

0.00 0.00

Em.Mk.Eq.Fund Euro

€ 108.70

-

-1.52 0.00

Convertible Bd Asia PA F

€ 14.33

-

0.00 0.00

Em.Mk.Eq.Fund Sterling

£ 101.12

-

-1.52 0.00

Convertible Bd Asia PA F

$ 14.41

-

0.00 0.00

Em.Mk.Eq.Fd.US Dollar

$ 103.07

-

-1.51 0.00

-0.07 0.00

Em.Mk.Loc.Ccy Debt Fd.FC

¥ 9560.00

-

-68.00 6.12

-0.07 0.00

Em.Mk.Loc.Ccy Debt Fd.FD

¥ 11418.00

-

-101.00 5.54

$ 93.80

-

-0.79 0.00

Emerg. Consumer (CHF) PA Emerg. Consumer (EUR) PA

SFr 12.63 € 12.70

-

Emerg. Consumer (USD) PA

$ 12.68

-

-0.07 0.00

Em.Mk.Loc.Ccy Debt Fd II

Emerg.Eq. Risk Par.(EUR) PA

€

8.27

-

-0.03 0.00

Gb.Conc.Eq.Fd.Euro

€ 243.23

-

-3.19 0.00

Emerg. Eq. Risk Par.(USD) PA

$

7.17

-

-0.04 0.00

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

£ 160.55

-

-2.25 0.00

Emerg. Loc.Cur.&Bds DH (CHF) PASFr

8.28

-

-0.01 0.00

Gb.Conc.Eq.Fd.Sterling

£ 243.67

-

-3.42 0.00

$ 191.15

-

-2.62 0.00

Emerg.Loc.Cur.Bd.Fdt PA Emerg.Loc.Cur.Bd.Fdt PA

9.31

-

-0.01 0.00

Gb.Conc.Eq.Fd.US

€ 11.14

-

-0.03 0.00

Gb.Eq.Hdg Fd.Euro IRE T

€ 171.42

-

-2.27 0.00

€ 243.22

-

-3.22 0.00

SFr

9.61

-

-0.03 0.00

Gb.Eq.Euro Hdg Fd.

Euro BBB-BB Fdt PA

SFr 15.83

-

-0.01 0.00

Gb.Eq.Fund Euro

€ 250.35

-

-3.27 0.00

Euro BBB-BB Fdt PA

€ 12.40

-

-0.01 0.00

Gb.Eq. Fd Euro IRE T

€ 158.18

-

-2.07 0.00

Euro BBB-BB Fdt PA

£ 10.92

-

-0.01 0.00

Gb.Eq.Fd.Sterling UK T

£ 199.86

-

Euro BBB-BB Fdt PA

$ 17.64

-

-0.01 0.00

Gb.Eq.Fd.US Dollar

$ 310.75

Euro Credit Bd PA F

€ 12.97

-

-0.01 0.00

Gb.Eq.Fund Sterling

Emerg.Loc.Cur.Bd.Fdt PA

$

$ 14.89

-

-0.18 0.00

Global Energy (USD) PA F

$

8.47

-

-0.25 0.00

SFr 20.97

-

-0.21 0.00

Golden Age (EUR) PA

€ 14.23

-

-0.14 0.00

Golden Age (USD) PA F

$ 19.79

-

-0.20 0.00

Japan Small & Mid Caps PA

¥ 3089.00

-

-52.00 0.00

Sh.T- Money Mkt EUR PA

€ 112.43

-

Sh.T- Money Mkt CHF PA

SFr 129.38

-

0.00 0.00

Sh.T- Money Mkt GBP PA

£ 10.25

-

0.00 0.00

Sh.T- Money Mkt USD PA

$ 10.30

-

0.00 0.00

Sw.Fr.Bd(For) PA

SFr 23.67

-

-0.01 0.00

Sw.Fr.Credit Bd(For) PA

SFr 13.58

-

0.00 0.00

Tactical Alpha (CHF) PA

SFr 10.14

-

0.06 0.00

0.00 0.00

Tactical Alpha (EUR) PA

€ 10.37

-

0.06 0.00

Tactical Alpha (USD) PA

$ 14.87

-

0.09 0.00

Technology PA

€ 13.64

-

-0.16 0.00

Technology PA

$ 20.71

-

-0.25 0.00

SFr 12.48

-

-0.36 0.00

Wld Gold Expertise PAF Wld Gold Expertise PA Wld Gold Expertise PA

€

9.80

$ 12.86

-

-0.29 0.00 -0.37 0.00

LO Selection

-

-0.01 4.77

1.29

-

-0.01 0.11

Loomis Sayles US Equity Leaders I/A (GBP) £

1.27

-

-0.01 0.13

Class A (Retail) Asia Pacific

112.70

-

-0.90 1.05

NatWest (2230)F

China

107.60

-

-1.00 0.06

Emerging Mkts

199.10

-

-2.70 0.27

European Equity Income A acc

334.20

-

-1.30 3.64

PO Box 23873, Edinburgh EH7 5WJ** Enquiries: 0800 085 5588 Authorised Inv Funds Series 1(Minimum initial investment 16375,000)

Global Alpha

129.60

-

-2.00 0.37

United Kingdom Equity Index Fund £ 12.54

-

-0.04 2.69

Global Equity Income Inc

105.60

-

-1.00 3.94

UK Specialist Equity Inc

£ 18.87

-

-0.07 0.35

Global Equity Income acc

133.10

-

-1.20 3.86

Contl Europe Spec Equity

£ 15.49

-

-0.15 0.00

99.63

-

-0.02 0.05

US Spec Equity Fund

£ 13.22

-

-0.18 0.00

North American

244.60

-

-4.50 0.00

Japan Specialist Fund

£

8.60

-

-0.10 0.00

European Equity Income A Inc

302.00

-

-1.20 3.73

Pacific Basin Specialist Equity Fund £ 22.72

-

-0.21 0.56

UK Sovereign Bd Index Fund

-

-0.01 2.70

9.55

-

-0.05 3.54

Global Spec Inv Grade Bd Fund GBP £ 10.49

-

0.00 3.17

Inflation Lkd Sov Bd Fund

£ 12.62

-

-0.03 0.75

Global Emerg Mkts Equity Fund

£ 12.12

-

-0.14 0.90

Japan Alpha

Marwyn Asset Management Limited

(CYM)

Regulated Marwyn Value Investors

£ 508.53

-

-17.94 0.00

(UK)

£ 10.89

UK Specialist Equity Income Fund £

-

-2.77 0.00

-0.15 0.68

-

-1.57 0.00

US Spec Equity Fund

£ 13.66

-

-0.19 0.31

¥ 13722.00

-

-206.00 0.00

Japan Specialist Fund

£

Regulated

Generation Global (USD) PA F

1.05

Loomis Sayles US Equity Leaders N/A (GBP) £

$ 117.49

MFS Meridian Funds SICAV

Gbl.Gvt.Fdmt PA

Loomis Sayles Strategic Income H-N/A (GBP) £

Saltire Ct, 20 Castle Terrace Edinburgh Inv Ser:0808 1002125 Authorised Inv Funds Martin Currie Investment Funds (OEIC)

£ 198.05

-0.04 0.00

-

Martin Currie Fund Management Ltd (1200)F (UK)

-0.07 1.47

-

0.02 0.00

-0.01 4.65

-

€ 10.09

0.00

-

£ 16.12

Europe High Conviction PA

-

0.99

Contl Europe Spec Equity

-0.01 0.00

-

-

Loomis Sayles Strategic Income H-N/D (GBP) £

Property Income Trust for Charities

-

$ 19.23

-0.01

-4.23 0.00

€ 18.37

$ 10.17

-

-

Euro Resp.Corp. Fdt PA

Gl Aggregate High Conv PA

-

1.05

-0.04 3.06

Gb.Val.Ex-Japan Fd.Yen

Fdmt.Eq.L/S SH Sd USD PA

-0.01

Harris Associates Global Concentrated Equity Fund I/A(GBP) £

-

-0.05 0.00

-

-0.02 1.48

-

-

-0.01 0.00

0.00

-

1.05

£ 19.01

-

-0.13 0.00

1.17

Harris Associates Global Concentrated Equity Fund N/A (GBP) £

£ 26.13 26.39 -0.22 0.00

UK Specialist Equity Inc

-

-

H2O MultiReturns Fund N/A (GBP) $ 13.20 13.20 -0.01 2.17

United Kingdom Equity Index Fund £ 12.53

€ 11.95

-

(UK) Natixis International Funds Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 Authorised Funds

2 Cavendish Square, London, W1G 0PU, 020 7495 1929 Property & Other UK Unit Trusts

€ 12.38

€ 42.96

Loomis Sayles Multisector Income R/D (GBP) £ 13.79 13.79 -0.04 3.70

-2.78 0.00

Euro Inflation-Lk Fdt PA

€ 10.18

Loomis Sayles High Income R/D (USD) $ 10.53 10.53 -0.04 4.63

Series 2 (Investment Management customers only)

Euro Government Fdt PA

Fdmt.Eq.L/S SH Sd EUR PA

Loomis Sayles Strategic Alpha Bond Fund H-N/D(GBP) £ 99.23 99.23 -0.14 1.74

Mayfair Capital Investment Management Limited (UK)

Gb.Val.Ex-Jap.Fd.USD

Eurozone Small&Mid Caps PA

-1.27 3.88

Harris Concentrated US Equity R/D (GBP) £ 137.06 137.06 -2.21 3.52

H2O MultiReturns Fund I/A (GBP) £

Marlborough Tiger Fund Ltd F

FCA Recognised

SFr

-

Marlborough North American Fund Ltd £ 30.27 32.26 0.24 0.00

MFS Investment Funds

$ 270.07 270.07 -4.00 0.00

Harris Concentrated US Equity H-N/A (GBP) £ 148.06 148.06 -2.33 0.00

MFM Hathaway Inc

All Roads (USD) PA

-0.66 0.00

Harris Global Equity R/A (USD)

136.46 147.52 2.06 0.00

All Roads (CHF) PA

-0.44 0.00

Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 FCA Recognised

137.81

0.01 0.00

-

Natixis International Funds (Lux) I SICAV (LUX)

MFM Artorius Fund

-

-

10.23 0.00

MFM Bowland

$ 17.77

€ 80.38

-

-

Absolute Ret Bond (USD) PA

SFr 120.04

$ 457.88

-1.41 4.39

0.00 0.00

Alternative Beta PA F

Phaeton Intl (BVI) Ltd (Est)

73.92 78.43 -0.13 6.27

Multi Cap Income A Inc

-

Alternative Beta PA F

Other International Funds

-1.24 2.00

€ 12.12

-

Morgens Waterfall Vintiadis.co Inc

77.92 82.46 -0.46 4.23

Absolute Ret Bond (EUR) PA

(LUX)

74.99 77.52 1.03 6.75

McInroy & Wood Portfolios Limited

(UK)

Easter Alderston, Haddington, EH41 3SF 01620 825867 Authorised Inv Funds Balanced Fund Personal Class Units

3834.50xd

-

-26.00 1.87

Income Fund Personal Class Units

2382.90

-

-21.30 2.97

Absolute Return A1

€ 18.12

-

-0.09 0.00

Emerging Markets Fund Personal Class Units

1784.10

-

-13.10 2.16

Asia ex-Japan A1

$ 24.55

-

-0.21 0.00

Smaller Companies Fund Personal Class Units

3405.50

-

-39.20 1.59

Bond A1

$ 10.35

-

0.00 0.00

China Equity Fd A1

$

9.71

-

-0.06 0.00

Meridian Fund Managers Ltd

Continental European Eqty A1

€ 15.51

-

-0.15 0.00

Other International Funds

Emer Mkts Debt Lo Curr Fd A1

$ 13.11

-

-0.11 0.00

Global Gold & Resources Fund

$ 235.74

-

-25.71

-

Emerging Markets Debt A1

$ 32.91

-

-0.18 0.00

Global Energy & Resources Fund $ 63.53

-

-9.60

-

Emerging Markets Eq.A1

$ 11.69

-

-0.15 0.00

-

9.05

-

-0.10 0.50

Pacific Basin Specialist Equity Fund £ 22.50

-

-0.21 1.28

UK Sovereign Bd Index Fund

£ 11.02

-

-0.02 2.70

UK Specialist Equity Income Fund £ 10.17

-

-0.05 3.49

Global Spec Inv Grade Bd Fund GBP £ 10.59

-

0.00 3.17

Inflation Lkd Sov Bd Fund

£ 12.73

-

-0.03 0.75

Global Emerg Mkts Equity Fund

£ 11.65

-

-0.13 1.45

The initial charge you will pay will depend on the amount you invest **Address and Telephone number for series 1 only

European Concentrated A1

€ 15.66

-

-0.15 0.00

Metage Capital

European Core Eq A1

€ 26.80

-

-0.25 0.00

Other International Funds $ 199.54

-

-1.09

Nevsky Capital LLP Other International Funds

€ 28.23

-

-0.31 0.00

MGS -Master Series

Nevsky Fund Plc EUR Acc

€ 1294.19

-

-16.59 0.00

European Smaller Companies A1 € 41.94

-

-0.40 0.00

MEMO - Master Series

$ 495.51

-

-19.16 0.00

Nevsky Fund Plc GBP Acc

£ 1313.82

-

-16.85 0.00

European Value A1

€ 31.28

-

-0.20 0.00

MEMO - MEMV Series (Est)

$ 122.03

-

-5.85 0.00

Nevsky Fund Plc USD Acc

$ 1322.90

-

-16.71 0.00

Global Bond A1

$ 10.81

-

0.02 0.00

Global Conc.A1

$ 35.99

-

-0.43 0.00

Ministry of Justice Common Investment Funds (UK)

Global Energy Fund A1

$ 13.84

-

-0.37 0.00

Property & Other UK Unit Trusts

Global Equity A1

$ 45.48

-

-0.52 0.00

The Equity Idx Tracker Fd Inc

Global Equity A1

€ 23.21

-

-0.39 0.00

(IRL)

European Res.A1

1325.00 1325.00 -13.00 2.77

Distribution Units

Global Multi-Asset A1

$ 16.20

-

-0.09 0.00

Global Res.A1

$ 25.82

-

-0.37 0.00

Global Total Return A1

€ 15.96

-

-0.16 0.00

High Yield A1

$ 24.86

-

-0.11 0.00

High Yield Fund A1

€ 14.54

-

-0.14 0.00

Mir. Ac. All. Bal A EUR

€ 110.86

-

-1.53 0.00

Inflation-Adjusted Bond A1

$ 14.22

-

0.02 0.00

New Capital Fund Management Ltd

Mir. Ac. All. Cons A EUR

€ 109.56

-

-0.85 0.00

Japan Equity A1

$

-

-0.13 0.00

Leconfield House, Curzon Street, London, W1J 5JB FCA Recognised New Capital UCITS Funds

9.37

Mirabaud Asset Management

(LUX)

www.mirabaud.com, [email protected] Regulated Mirabaud Fund

Mir. Conv. Bds Eur A EUR

€ 127.78

-

-0.21 0.00

Latin American Equity Fd A1

$ 16.25

-

-0.40 0.00

Mir. Conv. Bds Glb A USD

$ 111.73

-

-0.26 0.00

Limited Maturity A1

$ 14.04

-

0.00 0.00

Mir. - Dynam.Alloc. A EUR

€ 104.22

-

0.20 0.00

Prudent Wealth Fd A1

$ 13.99

-

0.01 0.00

Mir. - Eq Asia ex Jap A

$ 179.28

-

-2.19 0.00

Research Bond A1

$ 16.59

-

0.02 0.00

Mir. - Eq Glb Emrg Mkt A USD

$ 100.53

-

-1.53

UK Equity A1

£

7.80

-

-0.10 0.00

Mir. - Eq Global A USD

$ 126.14

-

-1.55 0.00

US Conc.Growth A1

$ 15.25

-

-0.23 0.00

Mir. -Eq Spain A

€ 25.48

-

-0.10 0.00

US Government Bond A1

$ 17.02

-

0.03 0.00

Mir. - Eq Swiss Sm/Mid A

SFr 291.22

-

-1.45 0.00

Value A1

$ 21.83

-

-0.34 0.00

Mir. - Eq UK

£

2.02

-

0.01 0.00

Mir. - Eq US A USD

$ 168.35

-

-2.54 0.00

Mir. - Glb High Yield Bds A

$ 108.46

-

-0.51

-

Mir. - Glb High Yield Bds AH CHFSFr 107.71

-

-0.51

-

Mir. - Glb High Yield Bds AH EUR € 108.11

-

-0.51

-

Mir. - Glb High Yield Bds AH GBP £ 108.87

-

-0.51

-

Mir. - Glb Eq High Income A CHF SFr 105.38

-

-0.68

-

Mir. - Glb Eq High Income A EUR € 106.85

-

-0.78

-

Mir. - Glb Eq High Income A GBP £ 103.92

-

-0.85

-

Mir. - Glb Eq High Income A USD $ 103.33

-

-0.82

-

Mir. - Glb Strat. Bd A USD

$ 105.51

-

-0.30 0.00

Mir. Opp.- Activ.Strategies I

$ 102.70

-

2.70

Balanced (CHF) PA F

SFr 109.05

-

-0.31 0.00

Balanced (EUR) PA F

€ 119.36

-

-0.42 0.00

Conservative (CHF) PA F

SFr 104.74

-

-0.18 0.00

MMIP Investment Management Limited

Conservative (EUR) PA F

€ 111.28

-

-0.23 0.00

Global Allocation (GBP) PA F

£

9.79

-

-0.02 0.00

Regulated Multi-Manager Investment Programmes PCC Limited

Growth (CHF) PA F

SFr 114.11

-

-0.45 0.00

Growth (EUR) PA F

€ 126.91

-

-0.60 0.00

Vantage 1500 (EUR) MA

€ 10.25

-

-0.02

-

Vantage 3000 (EUR) MA

€ 10.46

-

-0.05

-

PrivilEdge

Property Income B Acc

£ 23.99

-

Golden Age (CHF) PA F

Diversified Income B Acc

0.01 0.00

Euro Corporate Bond AX F

6498.31xd

-0.21 0.00

-1.50 0.00

-

75.84xd

-

-

-

€ 15.61

NAACIF

€ 17.61

195.56 204.34 -0.15 2.98

$ 36.40

Euro Bond A F

(Accum Units)

Generation Global (EUR) PA F

217.80

-0.48 0.00

Emerging Markets Equity A F

-0.0560 1.30

-10.06 0.00

Sterling Bond Acc

-

0.0013 5.12

-0.01 0.00

Multi-Manager Managed A Inc

-0.56

-0.09 4.98

-

-0.14 0.00

Invesco Perpetual Funds (No Trail)

-

-

-

-1.50 0.00

Emerging Markets Debt A F

£ 4.2750

-

-

-

$ 76.04

Emerging Markets Domestic Debt AX F £ 12.44

£ 0.8901xd

$ 10.97

221.00

524.99

-0.82 0.00

International

SFr 12.85

Multi-Manager Managed A Acc

F

-

High Income

Generation Global (CHF) PA F

US Equity Acc

-

0.13 0.00

Emerg Europ, Mid-East & Africa Eq A F € 61.03

0.00 0.00

Gbl.5B Fdmt SH (USD) PA

-0.60

-

-0.04 0.00

-1.60 3.70

-

€ 33.88

-

0.00 0.00

139.80

(UK) Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500 www.marlboroughfunds.com Authorised Inv Funds

0.00 1.06

Diversified Alpha Plus A F

-

-

Multi-Manager Income & Growth A Inc

-0.0027 4.45

0.00 0.00

-

$ 13.03

SFr 10.90

UK Strategic Income Inc

-

-

£ 11.19

$ 62.30

Gbl.5B Fdmt (CHF) PA

-0.18 2.84

Strategic Income Fund Class AA F $ 1.0713

-

$ 18.93

Asian Property AX F

US Growth A F

-2.10 3.60

-0.60 2.01

-0.0099

Asian Property A F

US Dollar Liquidity A F

-0.01 0.00

-

-0.0141 0.00

-

-0.36 0.00

50.87 53.83 0.08 4.48

-

-

-

Asia Value Dividend Equity Fund Class AA Inc $ 0.9913

0.00 0.00

-

Bond Income

€ 11.08

77.52

Asia Value Dividend Equity Fund Class AA F $ 1.6265

-

$ 43.35

0.58 5.07

Gbl.5B Fdmt (EUR) PA

149.20

-

$ 52.69

Asian Equity A F

16.21 5.07

0.03 0.00

Multi-Manager Income & Growth A Acc

-0.0009 3.51

US Advantage A F

-

-

Multi-Manager Diversified A Acc

-0.0010

-

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

-

SFr 26.92

UK Strategic Income Acc

-

Morgan Stanley Investment Funds

3597.93xd

Gbl.Gvt.Fdt.SH (CHF) PA

-13.93 0.00

-0.08 0.00

127.93xd

0.00 0.00

-

-0.08 0.00

-

(Accum Units)

0.02 0.00

$ 1675.38

-

Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 11.93

Charibond

-

Invest AD - GCC Focus Fund

Morant Wright Sakura Fund Dollar Acc Hedged $ 11.94

-0.0710 1.00

-

-4.72 0.00

-7.71 0.00

-

€ 10.18

-

-

£ 7.4570

SFr 24.55

Invest AD - Emerging Africa Fund $ 1232.70

-0.08 0.00

Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1214.98

European

Gbl.Gvt.Fdmt.(CHF) PA

-

-0.07 0.00

-0.0010 3.36

Convertible Bd P A

7.66

-

-

Commodities (CHF) PA

£ 14.89

-

Morant Wright Sakura Fund Euro Acc Hedged € 11.95

€ 1.6970

(LUX)

234.90

F

Property & Other UK Unit Trusts

Morant Wright Sakura Fund Sterling Acc Hedged £ 11.97

Euro High Income

£ 1.368710 1.375530 0.008580 3.75

Cautious Managed A Inc

F

(UK)

1465.54 1526.61 -21.40 1.09

JPMorgan Charity Funds

Cautious Managed A Acc

F

M & G Securities Ltd

UK Growth

-32.36 0.00

-

7.92

0.0400 2.49

134.36 139.95 0.30 3.16

-

4.81

Invesco Global Health Care A

-

Asia Total Return Fund Class AA $ 0.9980 Asia Total Return Fund Class AA Inc $ 0.9658

Marlborough Fd Managers Ltd (1200)F

Strategic Corporate Bond Fund

€ 2364.52

Invesco Gold & Precious Metals A $

Invesco Gilt A

£ 12.3800

Lloyds Investment Funds Limited

Euro

-0.01 0.00

Invesco Global Asset Management Ltd

0.0009 0.06

Multi Asset Growth B EUR Acc Non-Rpt €

-

0.00 0.00

-0.0042 0.00

-

-0.53 3.45

Invesco Global Total Ret.(EUR) Bond Fund A € 13.18

-

-

US Treasury Inflation-Protected Securities Fund Class AA F $ 1.2954

-0.90 3.37

60 Victoria Embankment, London EC4Y 0JP 020 7742 9175 Property & Other UK Unit Trusts

$ 87.02

US Small Cap Equity Fund Class AA F $ 1.0981

-

-0.15 0.94

Invesco USD Reserve A

-

-

10496.49 10933.85 -160.74 1.52

-0.60 0.00

-

-0.0064

80.81xd

10446.09 10881.34 -159.33 0.59

-

-0.0641

-

134.30xd

Recovery Fund Limited 'I' Participating Shares

$ 32.40

-

U.S. Special Opportunities Fund Class AA Inc $ 0.9252

UK Eq & Bond Inc Inc ... C

Recovery Fund Limited 'A' Participating Shares

Invesco US Value Eq Fd A

U.S. Special Opportunities Fund Class AA (HKD)HK$ 9.3484

UK Eq & Bond Inc Acc ... C

-0.70 0.00

0.01 2.73

-0.0062 6.94

-0.01 0.00

-

-0.33 0.00

-

-

143.65 149.64 -0.12 2.64

-

U.S. Special Opportunities Fund Class AA F $ 0.9047

1.04

11166.84 11512.21 2.97 0.71

-

-

Multi Asset Conservative B USD Acc Non-Rpt $

Optimal Income Fund

0.99

-0.0089

-1.40 1.34

Global Macro Bond Fund

$ 21.70

-

-

Star Capitol America D

Invesco US Structured Equity A

U.S. Bond Fund Class AA (HKD) IncHK$ 9.9232

120.30

-

Invesco UK Investment Grade Bond A £

-

UK Dynamic Inc

0.01 3.13

-0.40 0.00

-0.0010

-0.12 2.65

-0.62 0.00

-

-0.0011 3.93

-

-0.91 0.65

-

Invesco UK Eqty Income A

-

$ 0.9997

-

-

-0.17 0.00

$ 1.2030

U.S. Bond Fund Class AA Inc F

144.97

986.99 1017.51 -4.71 4.77

-

US Bond Fund Class AA F

M&G Optimal Income A Inc

Global High Yield Bond

Invesco Pan European Structured Equity A € 14.98

0.0003 0.00

-0.54 4.81

-0.01 2.45

-0.33 0.00

-

-

3251.93 3387.42 -41.13 1.32

-0.06 2.12

$ 0.9639

-

Global Leaders

-

-0.0021 0.22

Turkey Equity Fund Class AA F

76.68xd

0.0000 -0.18

-

-

114.74xd

-

Invesco Pan European Small Cap Equity A € 17.72

$ 1.5099

M&G Global High Yield Bond X Acc

$ 60.5980

Invesco Pan European High Income Fd A € 13.72

-0.0112 0.00

Taiwan Equity Fund Class AA F

M&G Managed Growth X Inc

US Dollar Class

0.00 0.00

-

0.00 1.83

2343.35 2440.99 -24.05 0.00

-0.37 0.00

-0.0214 1.24

$ 0.3938

0.00 0.00

Global Basics

-

-

Russia Equity Fund Class AA F

-

0.0000 0.21

-

Latin America Equity Fund Class AA F $ 0.9449

-

0.0170 2.68

Invesco Pan European Equity A EUR Cap NAV € 17.33

-0.0087 0.00

1.05

-

Invesco Nippon Small/Mid Cap Equity A ¥ 991.00

-

1.06

-

-4.00 0.00

-0.0335 0.66

Japanese Growth Fund Class AA F $ 0.7852

Multi Asset Conservative B GBP Income Rpt £

£ 52.5190

-0.19 0.00

-

Multi Asset Conservative B GBP Acc Non-Rpt £

NZ$ 208.8090

-

-0.0033 0.00

Japanese Growth Fund Class A F $ 3.0488

-1.60 1.33

Sterling Class

-

-

-0.66 3.00

New Zealand Dollar

7.88

-0.0144 0.13

International Growth Fund Class AA F $ 1.0506

-

6 route de Trèves L - 2633 Senningerberg - Luxembourg FCA Recognised Star Capitol America

Invesco Japanese Value Eq Fd A ¥ 1142.00

-0.0213 0.00

-

-

JPMorgan Asset Management (Europe) S.à. r.l. (FRA)

Invesco Latin American Equity A $

-

51.56

(IRL)

-

$ 1.3605

145.00

Invesco Global Structured Equity A $ 43.76

£ 29.32

-

-

International Growth Fund Class A F $ 4.5701

UK Dynamic Acc

UK Active Index + E Inc

(CYM)

$ 2.6044

58.41

Choices Managed

Asian Equity Fund Class AA F

Morant Wright Management Ltd

$ 8.3042

Multi-Asset Macro Acc

-

Regulated

-

China Value Fund Class AA F

-2.20 1.90

268.51 282.58 0.01

-0.0291 0.40

China Value Fund Class A F

-

Choices Wth-Pfts St-tm

-

0.13 0.00

137.75

-

-0.0043

$ 3.0760

-

-0.0564

F

316.22 332.75 0.01

-

Asian Equity Fund Class A F

6.93

-

UK Aggressive (No Trail) Inc

Choices Wth-Pfts Lg-tm

American Growth Fund Class AA (HKD) FHK$ 10.2115

-

Asian Small Cap Equity Fund Class AA (HKD)HK$ 8.7539

Generali International Limited

-

-0.0007 0.00

0.13 0.00

-0.45 3.79

£ 23.19 24.16 0.00

-0.0124 0.00

-

-

-

Property Bond

-

-

-

(UK)

Montello Real Estate Opportunity Fund II £ 1072.84

American Growth Fund Class A F $ 28.6191 American Growth Fund Class AA F $ 1.6280

$ 22.57

177.24

Perptual Park, Henley-On-Thames, Oxon, RG9 1HH Dealing: 0800 085 8571 Investor Services: 0800 085 8677 Broker Services: 0800 028 2121 www.invescoperpetual.co.uk Authorised Inv Funds INVESCO PERPETUAL Funds

(LUX)

101 New Cavendish Street,London W1W 6XH Regulated

$ 22.27

65.45xd

Invesco Fund Managers Ltd

Montello Real Estate Opportunity Fund

MW Japan Fd Ltd B

Multi-Asset Inc Inc... C

Guardian Assurance

(LUX)

31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg www.manulife.com.hk FCA Recognised

MW Japan Fd Ltd A

-2.55 1.86

(UK) Ballam Road, Lytham St Annes, Lancashire, FY8 4JZ 01253 733 151 Insurances

55.89 59.31 -0.10 0.00

-0.0140 0.00

109.51

Guardian

(UK)

-0.0094 0.00

F

-0.04 0.00

+/- Yield

-

-

-

Offer

-

160.18

5.73

Bid

$ 0.9911

F

£

Fund

Asian Small Cap Equity Fund Class AA F $ 2.1637

UK Aggressive (No Trail) Acc

Emerging Mkts NAV

Manek Investment Mgmt Ltd (1000)F

Manulife Global Fund Lothbury Property Trust (UK)

(UK)

Pacific (No Trail) Acc

F

+/- Yield

-

£ 10.16

High Income (No Trail) Acc

Offer

9.53

GAM Star China Equity USD Acc F $ 22.07

-

Bid

$

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

-

Fund

Jenn. US Eq.Opp. USD PA

(GSY)

European Equity Fd Cl A Initial Ser € 2207.58 2216.44 105.25 0.00 Japanese Equity Fd Cl A Initial Ser ¥ 316599.00 317659.00 15356.00 0.00 MMIP - US EQUITY CLASS A 01 June 07 Series $ 1347.23 1351.29 11.16 0.00 Pacific Basin Fd Cl A Initial Ser

$ 2423.41 2443.08 -29.42 0.00

UK Equity Fd Cl A Series 01

£ 2170.87 2192.23 85.54 0.00

-

Asia Pac Bd USD Inst Inc

$ 98.13

-

0.03 2.60

Asia Pac Bd USD Ord Inc

$ 99.98

-

0.03 1.93

Asia Pac Eq EUR Ord Inc

€ 102.85

-

-0.18 2.40

Asia Pac Eq GBP Ord Inc

£ 105.89

-

-0.18 2.78

Asia Pac Eq USD Ord Inc

$ 106.52

-

-0.19 2.43

Asia Pac Eq USD Inst Acc

$ 109.08

-

-0.19 0.00

Asia Pac Eq USD Inst Inc

$ 119.14

-

-0.21 3.02

Dyn Europ Eq EUR Ord Inc

€ 149.76

-

-0.19 0.51

Dyn Europ Eq GBP Ord Inc

£ 160.35

-

-0.21 0.93

Dyn Europ Eq USD Ord Inc

$ 150.52

-

-0.20 0.63

China Equity EUR Ord Acc

€ 145.94

-

2.02 0.00

China Equity GBP Ord Acc

£ 149.50

-

2.06 0.00

China Equity USD Ord Acc

$ 147.99

-

2.04 0.00

China Equity USD Inst Acc

$ 150.85

-

2.08 0.00

Swiss Select Equity Inst Acc

SFr 108.39

-

-0.21

-

Swiss Select Equity Ord Acc

SFr 107.87

-

-0.21

-

Total Ret Bd USD Ord Acc

$ 167.96

-

-0.35 0.00

Inc.Pt.RMB Dt.CNH PA

CNY 100.55

-

-0.03

-

Diversified Absolute Rtn Fd USD Cl AF2 $ 1590.01

-

3.25 0.00

Inc.Pt.RMB Dt.SH CHF PA

SFr 10.11

-

0.01

-

Diversified Absolute Return Stlg Cell AF2 £ 1605.74

-

3.55 0.00

Total Ret Bd EUR Ord Acc

€ 157.51

-

-0.33 0.00

Inc.Pt.RMB Dt.SH EUR PA

€ 10.11

-

0.01

-

Total Ret Bd GBP Ord Acc

£ 178.35

-

-0.37 0.00

Inc.Pt.RMB Dt.USD PA

$ 10.14

-

0.01

-

Total Ret Bd USD Inst Acc

$ 123.65

-

-0.25 0.00

-

★

Friday 12 December 2014

31

FINANCIAL TIMES

MANAGED FUNDS SERVICE Fund

Bid

Offer

Total Ret Bd GBP Ord Inc

£ 116.02

-

-0.24 3.70

+/- Yield

Global Investment Grade Credit Fund Inst Acc € € 10.59

-

-0.02 0.00

UK Specialist Equity Inc

US Growth USD Ord Acc

$ 195.49

-

-3.24 0.00

Global Investment Grade Credit Fund Inst Acc $ $ 16.38

-

-0.03 0.00

Contl Europe Specialist Fund

£ 22.88

US Growth EUR Ord Acc

€ 187.63

-

-3.11 0.00

Global Multi-Asset - Inst Acc

$ 14.39

-

-0.14 0.00

Japan Specialist Fund

£ 13.02

US Growth GBP Ord Acc

£ 195.69

-

-3.23 0.00

Global Real Return - Inst Acc

$ 18.18

-

-0.06 0.00

US Spec Equity Fund

£ 17.86

US Growth USD Inst Acc

$ 179.22

-

-2.97 0.00

High Yield Bond - Inst Acc

$ 27.15

-

-0.11 0.00

Pacific Basin Specialist Equity Fund £ 40.06

Wealthy Nat Bd EUR Inst Inc

€ 110.49

-

-0.18 3.95

Income Fund Inst Acc

$ 11.92

-

-0.03 0.00

UK Sovereign Bd Index Fund

£ 10.67

Wealthy Nat Bd GBP Inst Inc

£ 113.99

-

-0.19 3.79

Inflation Strategy Fund Inst Acc

$

-

-0.06 0.00

Inflation Lkd Sov Bd Fund

£ 12.86

Wealthy Nat Bd EUR Ord Inc

€ 109.81

-

-0.18 3.66

Wealthy Nat Bd GBP Ord Inc

£ 114.53

-

-0.18 3.55

Wealthy Nat Bd USD Ord Inc

$ 111.65

-

-0.19 3.76

New Capital Alternative Strategies All Weather Fd USD Cls

$ 119.79

-

-0.86 0.00

All Weather Fd EUR Cls

€ 108.17

-

-0.86 0.00

All Weather Fd GBP Cls

£ 116.21

-

-0.90 0.00

Tactical Opps USD Cls

$ 172.01

-

-0.03 0.00

Tactical Opps EUR Cls

€ 144.78

-

0.00 0.00

Tactical Opps GBP Cls

£ 162.68

-

-0.01

-

Fund

Bid

Offer

+/- Yield

Optima Fund Management Other International Funds JENOP Global Healthcare Fund Ltd $ 14.36

-

0.18 0.00

Optima Fd NAV (Est)

$ 91.27

-

0.10 0.00

Optima Discretionary Macro Fund Limited $ 85.98

-

0.00 0.00

The Dorset Energy Fd Ltd NAV (Est) $ 41.31

-

-2.47 0.00

Platinum Fd Ltd (Est)

-

0.00 0.00

$ 89.79

Platinum Fd Ltd EUR (Est)

€ 17.58

-

0.00 0.00

Platinum Japan Fd Ltd (Est)

$ 49.25

-

0.00 0.00

Optima Partners Global Fd

$ 14.52

-

0.13 0.00

Optima Partners Focus Fund A

$ 16.72

-

0.11 0.00

Orbis Investment Management Ltd

(BMU)

Regulated

Northwest Investment Management (HK) Ltd 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 Other International Funds Northwest $ class

$ 2258.30

-

84.38 0.00

Northwest Warrant $ class

$ 1852.87

-

172.36 0.00

Orbis Global Equity

$ 178.36

-

-2.82 0.00

Orbis Optimal (US$)

$ 75.24

-

-0.73 0.00

Orbis Optimal (Euro)

€ 25.52

-

-0.22 0.00

Orbis Optimal (Yen)

¥ 1080.00

-

-8.00 0.00

Orbis Japan Equity (US$)

$ 40.84

-

0.77 0.00

Fund

Bid

Offer

9.64

+/- Yield

Orbis Sicav ¥ 3995.00

-

78.00 0.00

€ 26.44

-

0.51 0.00

Orbis Asia ex-Japan - Investor Shares $ 22.61

-

-0.62 0.00

Orbis Global Equity - Investor Shares € 142.29

-

-1.46 0.00

£

5.14

-

-

Permal Investment Mgmt Svcs Ltd

OasisCresGl Income Class A

-

0.00 2.58

www.permal.com Other International Funds Offshore Fund Class A US $ Shares

$ 12.04

-

-0.06 0.00

OasisCresGl Med Eq Bal A ($) Dist $ 12.16

-

-0.08 0.12

Oasis Crescent Gbl Property Eqty $

-

0.01 1.74

9.70

$ 5469.77

-

0.00 0.00

$ 4167.98

-

0.00 0.00

Fixed Income Holdings N.V.

$ 410.53

-

0.00 1.95

Jubilee Absolute Return Fund

$ 157.82

-

-0.85 0.00

(UK) Ibex House, 42-47 Minories, London, EC3N 1DX Order Desk: 0845 300 2106, Enquiries: 0870 607 2555 Authorised Corporate Director - Capita Financial Managers Authorised Inv Funds CF Odey Continental European R Acc

725.03

-

-0.02 0.31

CF Odey Continental European I Acc

123.75

-

0.00 0.81

CF Odey Continental European I Inc

119.82

-

-0.01 0.81

CF Odey Opus R Inc

3685.02

-

-41.27 0.27

CF Odey Opus Fund A Accumulation

131.52

-

-1.47 0.07

CF Odey Opus Fund I Acc

168.68

-

-1.89 0.80

CF Odey Opus Fund I Inc

165.54

-

-1.85 0.80

CF Odey Absolute Return Fund Euro Hedged €

1.77

-

-0.01 0.00

CF Odey Absolute Return Fund US Dollar Hedged $

1.63

-

-0.01 0.00

CF Odey Absolute Return R

297.49

-

-1.62 0.00

CF Odey Absolute Return I

306.08

-

-1.77 0.00

CF Odey Portfolio Fund Class P Institutional Acc

102.64

-

-0.82

-

CF Odey Portfolio Fund Class P Retail Acc

102.46

-

-0.83

CF Odey Portfolio Fund I Acc

144.82

-

-1.29 0.06

CF Odey Portfolio Fund I Inc

142.52

-

-1.27 0.06

CF Odey Portfolio Fund R Acc

141.28

-

-1.26 0.00

141.04

-

-0.21 0.00

Max 100% Shs Port Acc Ret

273.30

-

-2.40

-

-0.15 0.00

Max 100% Shs Port Acc X

196.30

-

-1.70

-

-1.26 0.00

Odey Asset Management LLP

(CYM)

Regulated OEI MAC Inc A

£ 388.29

-

0.00 0.00

OEI Mac Inc B

£ 217.61

-

0.00 0.00

OEI MAC Inc USD

$ 2117.09

-

63.65 0.00

Odey European Inc EUR

€ 859.98

-

0.00 0.00

Odey European Inc A GBP

£ 329.37

-

0.00

Odey European Inc B GBP

£ 187.03

-

0.00 0.00

Odey European Inc USD

$ 401.74

-

0.00 0.00

Giano Capital EUR Inc

€ 4877.72

-

138.33 0.00

-

(LUX)

15, Avenue J.F. Kennedy L-1855 Luxembourg Tel: 0041 58 323 3000 FCA Recognised

-

-0.24 0.00

Enhanced Inc Inc Ins

203.90

-

-1.90

-

-0.37 0.56

Enhanced Inc Inc Ret

194.20

-

-1.90

-

-0.01 2.70

Enhanced Inc Inc X

164.10

-

-1.60

-

-

-0.03 0.75

Managed Investments OEIC 152.60

-

-0.10

-

-

0.00 3.17

Max 30% Shs Inc Port Inc Ret

153.20

-

0.20

-

PIMCO EqS Pathfinder.Fd Inst Acc F $ 13.68

-

-0.12 0.00

Series 6 (Investment Management Customers Only)

Max 30% Shs Inc Port Inc X

153.30

-

0.30

-

Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.82

-

-0.10 0.00

United Kingdom Equity Index Fund £ 15.47

-

-0.05 3.06

Max 60% Shs Port Acc Ret

260.30

-

-0.90

-

StocksPLUS{TM} - Inst Acc

-

-0.34 0.00

UK Specialist Equity

£ 19.01

-

-0.07 1.47

Max 60% Shs Port Inc Ret

213.00

-

-0.60

-

£ 23.59

-

-0.22 0.68

Max 60% Shs Port Inc X

164.90

-

-0.50

-

$ 22.62

Total Return Bond - Inst Acc

$ 26.92

-

0.01 0.00

Contl Europe Specialist Fund

UK Corporate Bond - Inst Acc

£ 16.80

-

-0.03 0.00

Japan Specialist Fund

£ 13.58

-

-0.16 0.50

Eq Inc Port Acc Ret

279.90

-

-2.20

-

UK Long Term Corp. Bnd Inst-Inst Acc £ 18.59

-

-0.05

US Spec Equity Fund

£ 18.50

-

-0.25 0.31

Eq Inc Port Inc Ret

225.00

-

-1.70

-

-

£ 22.71

-

-0.08 0.00

Pacific Basin Specialist Equity Fund £ 39.70

-

-0.37 1.28

Managed Investments OEIC 2

UK Sterling Long Average Duration - Inst Acc £ 20.96

-

-0.06 0.00

UK Sovereign Bd Index Fund

£ 10.75

-

-0.01 2.70

Investments Inc Port Inc Ret

168.00

-

0.90

-

UK Sterling Low Average Duration - Inst Acc £ 13.98

-

-0.02 0.00

Inflation Lkd Sov Bd Fund

£ 12.72

-

-0.03 0.75

Investments Inc Port Inc X

152.30

-

0.90

-

-

-0.05 3.49

£ Gov Bond Inc Inst

177.80

-

1.20

-

-

0.00 3.17

Strat Bond Inc Inst

183.90

-

0.30

-

-0.14 1.45

Managed Investments OEIC 3

UK Real Return - Inst Acc

$ 12.17

-

-0.04 0.00

UK Specialist Equity Income Fund £ 10.17

US Fundam.Index StocksPLUS Inst Inc $ 12.43

-

-0.24 0.00

Global Spec Inv Grade Bd Fund GBP £ 10.56

Unconstrained Bond - Inst Acc

Global Emerg Mkts Equity Fund

£ 11.65

-

Address and telephone number for Series 5 only

Royal London Unit Managers (CIS) (1200) F (UK) PO Box 105, Manchester M4 8BB 08457 464646 Authorised Inv Funds CIS Sustainable World Trust A European Growth

1.53

-

0.00 1.80

161.20

-

-1.30 0.80

-

Platinum Navigator Fund Ltd Class A $ 97.41

-

-

-

(IRL)

RBS Collective Investment Fds Ltd

(UK)

-1.03 0.00

-

-0.62 0.00

Pictet-Environmental Megatrend Sel I EUR € 139.72

-

-1.65 0.00

Pictet-EUR Bonds-I F

€ 542.56

-

-0.51 0.00

Pictet-EUR Corporate Bonds Ex Fin i EUR € 144.19

-

0.01 0.00

Pictet-EUR Corporate Bonds-I F

€ 199.46

-

-0.03 0.00

Pictet-EUR Government Bonds I EUR € 154.73

-

-0.11

Pictet-EUR High Yield-I F

€ 239.14

-

-0.54 0.00

Pictet-EUR Inflation Linked Bonds I EUR € 124.32

-

-0.36 0.00

Pictet-EUR Short Mid-Term Bonds-I F € 136.32

-

-0.04 0.00

-

€ 116.73

-

-0.19 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 103.22

-

0.00 0.00

Pictet-Euroland Index IS EUR

€ 119.77

-

-0.27 0.00

Pictet-Europe Index-I EUR F

Pictet-EUR Short Term HY I EUR

295.30

-

-3.80 2.20

High Yield

123.40

-

0.40 3.64

International Growth

391.30

-

-5.80 0.64

131.20

-

-0.40 1.20

119.40

-

-0.60 2.30

GEM Income I USD

$ 11.23

-

0.01 0.00

Capital Protected Accelerator Fund 2

125.30

-

3.00 0.00

Global Alpha I USD

$ 12.75 12.75 -0.12 0.00

Capital Protected Accelerator Fund 3

117.10

-

2.90 0.00

Global Convertible I USD

$ 11.27 11.27 -0.05 0.00

Capital Protected Fund 4

133.90

-

3.20 0.00

Global Insurance I GBP

£

3.62

-

-0.03 0.00

Capital Protected Fund 6

168.20

-

0.00 0.00

Global Technology I USD

$ 21.74

-

-0.38 0.00

Your Portfolio Fund II Class 1

110.60

-

-0.20 0.50

Your Portfolio Fund II Class 2

110.30

-

-0.20 0.50

-0.47 0.00

Your Portfolio Fund III Class 1

116.00

-

-0.30 0.90

-

-1526.00 0.00

Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 52756.00

-

-1011.00 0.00

-3.60

-

-

1.20

-

UK Equities

250.00

-

-3.30

-

US Equities

249.40

-

-4.30

-

Pacific Bas (ex-Japan)

509.90

-

-3.60

-

Saracen Fund Managers Ltd (1000)F

(UK) 19 Rutland Square, Edinburgh EH1 2BB Dealing: 00 353 1 603 9921 Saracen Investment Funds ICVC (OEIC) Enq. 0131 202 9100 Authorised Inv Funds

422.40

-

-4.40 1.76

IGV - Acc Z

393.80

-

-4.10 1.06

European EGV - Acc S

263.90

-

-1.20

EGV - Acc Z

263.90

-

-1.20 0.26

CVG - Acc S

105.90

-

-0.50

-

CVG - Acc X

105.90

-

-0.50

-

Gbl Govt Bond (Ex Japan) Index (GBP) £ 1618.83

-

-0.35 0.00

Other International Funds Indirect Real Estate SIRE

£ 121.92 126.87 0.85 3.44

(UK) Scottish Friendly Asset Managers Ltd Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000 Authorised Inv Funds

Global Eq (ex Japan) Class JP5

¥

1.52

-

-0.03 0.00

Global Eq Ex Japan Index Fund (Hedge) ¥

1.40

-

-0.02 0.00

Regulated

-0.70 0.60

LTIF Alpha

€ 157.21

Your Portfolio Fund VI Class 2

124.50

-

-0.70 1.00

LTIF Classic

€ 315.76

-

-4.08 0.00

Gbl Govt Bond (Ex Japan) Index

¥

1.37

-

-0.01 0.00

LTIF Natural Resources

€ 81.47

-

-1.85 0.00

Gbl Govt Bond (ex Japan) Class JP4 ¥

1.35

-

0.00 0.00

Japan Equity Index Fund

¥

0.95

-

-0.01 0.00

Japan Equity Class JP3

¥

1.15

-

-0.01 0.00

(GSY)

Monument Growth 09/12/2014

£ 437.53 442.61 -4.13 0.97

Prusik Investment Management LLP

(IRL)

Enquiries - 0207 493 1331 Regulated

-

-1.09 0.00

Veritas Global Equity Income Fund C USD $ 141.50

-

-1.44

-

€ 14.54

-

-0.04 10.22

Veritas Global Real Return Fund A USD $ 19.70

-

-0.16 2.09

Veritas Global Real Return Fund A GBP £ 10.94

-

-0.09 2.08

Veritas Global Real Return Fund A EUR € 11.57

-

-0.09 0.17

European O Acc

472.30

-

-5.61 0.00

Japanese Fund C Acc

173.61

-

-3.31 0.01

SKAGEN Tellus

Japanese Fund O Acc

172.23

-

-3.29 0.00

Pacific C Acc

286.84

-

-0.43 0.49

Smith & Williamson Investment Management (1200)F (UK)

Pacific O Acc

284.61

-

-0.45 0.18

Total Return C Acc

389.21

-

0.01 1.64 0.01 1.65

25 Moorgate, London, EC2R 6AY 020 7131 8100 www.sandwfunds.com Authorised Inv Funds European Growth Trust A Class

474.40

-

-2.10 1.39

Far Eastern Income and Growth Trust A Class

398.00

-

0.80 2.86

Fixed Interest Trust A Class

124.40xd

-

0.60 4.04

Global Gold and Resource Trust A Class

161.10

-

-3.80 0.00

MM Endurance Balanced Fund A Class

207.60

-

-1.10 0.98

MM Global Investment Fund A Class

2182.00

-

-6.00 1.67

North American Trust A Class

1694.00

-

-26.00 0.00

Oriental Growth Fund A Class

138.40

-

-1.00 0.90

UK Equity Growth Trust A Class

393.10

-

-5.10 0.87

UK Equity Income Trust A Class

216.30

-

-2.40 4.69

Pictet-Global Emerging Currencies-I USD F $ 101.56

-

-0.19 0.00

Purisima Investment Fds (CI) Ltd

Pictet-Global Emerging Debt-I USD F $ 350.39

-

-1.12 0.00

Regulated

S W Mitchell European Fund Class A EUR € 301.56

-

17.28

-

S&W Deucalion Fd (OEIC)

2064.00

Pictet-Global Megatrend Selection-I USD F $ 222.88

-

-3.06 0.00

-

S & W Magnum

365.70 386.20 -3.50 1.54

0.47 0.00

-2.25 0.00

3.57

-

-

-

€ 152.37

162.83

S W Mitchell Small Cap European Fund Class A EUR € 218.85

Odey Allegra European EUR A I

PCG B

-2.24 0.00

PCG C

160.86

-

-2.22 0.00

-12.15

-

0.38 0.00

-

-

-

$ 443.09

€ 279.88

£ 170.14

Pictet-Greater China-I USD F

The Charlemagne Fund EUR

Odey Allegra European GBP D

-1.73 0.00

Pictet-High Dividend Sel I EUR F € 143.36

-

-1.35 0.00

$ 105.99

-

-0.09 0.00

Putnam Investments (Ireland) Ltd Regulated

-

-1.54 0.00

Pictet-Japanese Equity Selection-I JPY F ¥ 13249.40

-

-74.45 0.00

Rathbone Unit Trust Mgmt (1200)F

-

-1.07 0.00

Pictet-LATAM Index I USD

$ 68.33

-

-1.69 0.00

-1.09 0.00

Pictet-LATAM Lc Ccy Dbt-I USD F $ 136.95

-

-1.43 0.00

Pictet-Pacific Ex Japan Index-I USD F $ 357.68

-

-3.04 0.00

PO Box 9948, Chelmsford, CM99 2AG Order Desk: 0845 300 2101, Enquiries: 0207 399 0399 Authorised Inv Funds

Odey Atlas Fund GBP R S

£

1.08

-

0.00 0.00

Pictet-Quality Global Equities I USD $ 133.79

Odey Giano European Fund EUR R € 123.76

-

0.56 0.00

Pictet-Russia Index I USD

Odey Giano European Fund GBP R £ 124.17

-

0.56 0.00

Pictet-Russian Equities-I USD F

Odey Giano European Fund USD R $ 125.01

-

0.57 0.00

Pictet-Security-I USD F

-

-0.90 0.00

-

-1.38 0.00

$ 50.22

-

$ 42.35

-

$ 185.94 € 104.41

(UK)

SWMC Emerging European Fund B EUR € 8471.25

-

-10.30 0.00

Daiwa Gaika MMF

$

6.87

-

-0.02 0.00

AU$ Portfolio

A$

0.01

-

0.00

-

US$ Portfolio

$

0.01

-

0.00

-

Daiwa Bond Series

Ethical Bond Acc

169.71 173.34 0.41 5.15

Monthly Dividend AUD Bd

A$ 10.44

-

0.03 0.00

Global Opportunities Acc

122.36 126.16 -1.86 0.00

Monthly Dividend EUR Bd

€ 10.75

-

-0.01 0.00

-

-2.56 0.00

Income Inc

807.32 835.63 -9.56 4.07

Monthly Dividend CAD Bd

C$ 10.24

-

0.01 0.00

-

0.20 0.00

-

-1.82 0.00

Pictet-ST.MoneyMkt-I

€ 140.54

-

0.00 0.00

Multi Asset Strategic Growth inc

145.98

-

-0.68 1.27

Odey Odyssey Fund GBP I

£ 149.67

-

-1.82 0.00

Pictet-ST.MoneyMkt JPY I USD

¥ 101575.77

-

-2.10 0.00

Multi Asset Strategic Growth acc

152.94

-

-0.71 1.10

Odey Odyssey Fund GBP R

£ 147.53

-

-1.79 0.00

Pictet-ST.MoneyMkt-ICHF

SFr 125.23

-

0.00 0.00

Multi Asset Total Return inc

125.03

-

-0.28 1.62

Odey Odyssey EUR I

€ 134.35

-

-1.64 0.00

Pictet-ST.MoneyMkt-IUSD

$ 134.78

-

0.00 0.00

Multi Asset Total Return acc

135.57

-

-0.31 1.74

Odey Odyssey Fund EUR R

€ 111.88

-

-1.36 0.00

Pictet-Timber-I USD F

$ 154.95

-

-2.16 0.00

Recovery Inc

385.94 401.26 -5.22 2.48

Odey Odyssey Fund USD R

$ 117.02

-

-1.42 0.00

Pictet Total Ret-Agora I EUR

€ 101.89

-

0.18

Recovery Acc

455.23 472.90 -6.15 2.44

Odey Orion Fund Euro I Class

€ 121.70

-

0.01 0.00

Pictet Total Ret-Corto Europe I EUR € 124.62

-

0.04 0.00

Strategic Bond Ret Acc

£

1.18

1.20 0.00 3.68

Odey Orion Fund USD I Class

$ 121.78

-

0.01 0.00

Pictet Total Ret-Divers Alpha I EUR € 100.83

-

0.16

Strategic Bond Ret Inc

£

1.07

1.09 0.00 3.97

Odey Swan Fund Euro I Class

€ 105.69

-

0.57 0.00

Pictet Total Ret-Kosmos I EUR

€ 108.75

-

0.06 0.00

-

-0.28 0.00

-

-3.51 0.00

-

Odey Swan Fund Euro R Class

€ 104.80

-

0.57 0.00

Pictet Total Ret-Mandarin I USD $ 116.20

Odey Swan Fund GBP I Class

£ 105.78

-

0.58 0.00

Pictet-US Equity Selection-I USD $ 187.18

Odey Swan Fund GBP R Class

£ 109.99

-

0.60 0.00

Pictet-US High Yield-I USD F

$ 146.18

-

-0.50 0.00

www.recmglobal.com Enquiries: [email protected] Regulated

Odey Swan Fund USD I Class

$ 105.48

-

0.57 0.00

Pictet-USA Index-I USD F

$ 176.96

-

-2.93 0.00

RECM Global Fund Limited - Class A $ 17.30

-

-0.12 0.00

Pictet-USD Government Bonds-I F $ 628.57

-

2.26 0.00

RECM Global Equity Fund Limited - Class A $

-

-0.07

0.08 0.00

Odey Swan Fund USD IR Class

$ 105.06

-

0.58 0.00

Odey Swan Fund USD R Class

$ 104.67

-

0.57 0.00

Pictet-USD Short Mid-Term Bonds-I F $ 128.73

-

Odey European Absolute Return Fund EUR I € 97.31

-

0.99

-

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

$ 102.48

-

0.00 0.00

Odey European Absolute Return Fund GBP I £ 96.64

-

0.98

-

Pictet-Water-I EUR F

€ 243.59

-

-2.45 0.00

Odey European Absolute Return Fund USD I $ 97.72

-

0.99

-

Odey European Absolute Return Fund EUR R € 92.64

-

0.93

-

Pimco Fds: Global Investors Series Plc

Odey European Absolute Return Fund GBP R £ 96.45

-

0.98

-

Odey European Absolute Return Fund USD R $ 97.41

-

0.98

-

(IRL)

Odey European Absolute Return Fund EUR S € 97.47

-

0.99

-

Odey European Absolute Return Fund GBP S £ 98.03

-

1.00

-

PIMCO Europe Ltd,11 Baker Street,London W1U 3AH http://gisnav.pimco-funds.com/ Dealing: +44 20 3640 1000 PIMCO Funds: +44 (0)20 3640 1407 FCA Recognised

Odey European Absolute Return Fund USD S $ 97.77

-

0.99

-

Asia Local Bond Fund - Inst Acc

$

9.97

-

0.01 0.00

Capital Securities Inst Acc

$ 14.43

-

-0.05 0.00

-

-0.10 0.00

Credit Absolute Return Fund Inst Acc $ 11.36

-

-0.05 0.00

Diversified Income - Inst Acc

$ 19.19

-

-0.08 0.00

Diversified Income Durat Hdg Fund Inst Acc $ 11.39

-

-0.08 0.00

EM Fundam.Ind StocksPLUS Fund Inst Acc $ 10.68

-

-0.09 0.00

Odey Wealth Management UK

Emerging Asia Bond Fund Inst Acc $ 10.19

-

-0.02 0.00

Authorised Funds

Emerging Multi-Asset Fund Inst Acc $

-

-0.10 0.00

RECM Global Management Limited

8.82

Mthly Div US Preferred Secs

RobecoSAM Sm.Energy/A

£ 11.37

-

-0.19 1.25

RobecoSAM Sm.Materials/A

£ 120.28

-

-2.39 2.00

RobecoSAM S.Climate/A

£ 78.60

-

-0.52 1.69

RobecoSAM S.Global Eq/B

€ 164.01

-

-2.44 0.00

RobecoSAM S.HealthyLiv/B

€ 160.41

-

-1.52 0.00

RobecoSAM S.Water/A

£ 159.02

-

-1.31 2.31

-

(IRL)

Regulated European Opportunities Fund A

€ 141.82

-

-0.04 0.00

European Opportunities Fund B

€ 104.90

-

-0.02 0.00

Renaissance Eastern European Allocation Fund € 411.10

-

-0.02 0.00

Renaissance Eastern European Fund A € 374.74

-

-10.75 0.00

Renaissance Eastern European Fund B € 80.46

-

-2.31 0.00

Renaissance Ottoman Fund

-

-2.04 0.00

-

-0.55

-

Emerging Local Bond - Inst Acc

$ 12.83

-

-0.10 0.00

VT Odey Total Return Fund Class A € 106.91

-

-0.60

-

Emerging Markets Bond - Inst Acc $ 38.14

-

-0.39 0.00

VT Odey Total Return Fund Class I £ 101.95

-

-0.56

-

Emerging Markets Corp.Bd Fund Inst Acc F $ 13.22

-

-0.06 0.00

VT Odey Total Return Fund Class I € 100.00

-

0.00

-

Emerging Markets Curr.Fd- Inst Acc $ 12.77

-

-0.04 0.00

VT Odey Total Return Fund Class R £ 102.63

-

-0.56

-

Euro Bond - Inst Acc

€ 22.32

-

-0.03 0.00

Asia-Pacific Equities (EUR)

€ 118.07

-

-0.85 0.00

VT Odey Total Return Fund Class R $ 102.00

-

-0.57

-

Euro Credit - Inst Acc

€ 14.55

-

-0.01 0.00

Chinese Equities (EUR)

€ 68.43

-

-0.30 0.00

VT Odey Total Return Fund Class I $ 105.28

-

-0.58

-

Euro Income Bond - Inst Acc F

€ 12.87

-

-0.05 0.00

Em Stars Equities (EUR)

€ 168.35

-

-1.17 0.00

-

-1.09 0.00

€ 107.57

-

0.14 0.00

Robeco Asset Management

(LUX)

Coolsingel 120, 3011 AG Rotterdam, The Netherlands. www.robeco.com/contact FCA Recognised

Euro Long Average Duration - Inst Acc € 21.17

-

0.04 0.00

Emerging Markets Equities (EUR) € 140.61

Euro Low Duration Fund Inst Acc € 11.28

-

0.00 0.00

Flex-o-Rente (EUR)

Euro Real Return - Inst Acc

€ 13.13

-

-0.05 0.00

Glob.Consumer Trends Equities (EUR) € 130.12

-

-1.20 0.00

Euro Short-Term Inst Acc

€ 12.19

-

-0.01 0.00

High Yield Bonds (EUR)

€ 122.31

-

-1.41 0.00

Euro Short-Term Inv Acc

€ 11.83

-

-0.01 0.00

Lux -O- Rente (EUR)

€ 135.70

-

0.38 0.00

Euro Ultra Long Duration - Inst Acc € 28.29

-

0.14 0.00

New World Financials (EUR)

€ 48.91

-

-0.44 0.00

Global Advantage - Inst Acc

-

-0.03 0.00

US Premium Equities (EUR)

€ 178.27

-

-3.41 0.00

-0.07 0.00

US Premium Equities (USD)

$ 199.49

-

-3.78 0.00

Global Bond - Inst Acc

$ 27.37

-

0.00 0.00

Global Bond Ex-US - Inst Acc

$ 19.13

-

-0.02 0.00

Royal Bank of Scotland (2230)F

Global Fundam.Index StocksPLUSInst Acc $ 11.63

-

-0.20 0.00

Global High Yield Bond - Inst Acc $ 19.60

-

-0.07 0.00

Global Investment Grade Credit - Inst Income $ 12.42

-

-0.02 3.17

PO Box 23873, Edinburgh EH7 5WJ 0800 917 7072 Authorised Inv Funds Series 5 (Minumum Initial Investment £75,000) United Kingdom Equity Index Fund £ 15.69

(UK)

-

-0.05 2.69

$ 1053.62

-

-21.20 0.00

$ 1361.06

-

-20.37 0.00

$

7.89

-

0.00 0.00

New Major Economies

$

8.90

-

-0.14 0.00

Standard Life Wealth

(JER)

PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 FCA Recognised Standard Life Offshore Strategy Fund Limited Bridge Fund

£ 1.5611

-

-0.0174 2.32

Diversified Assets Fund

£ 1.1668

-

-0.0057 3.08

Global Equity Fund

Veritas Asian Fund B USD

$ 211.44

-

-1.37 0.48

Veritas Asian Fund B GBP

£ 261.87

-

-2.12 0.04

Veritas Asian Fund B EUR

€ 205.89

-

-2.81 0.00

Veritas China Fund B GBP

£ 130.92

-

-0.53 0.00

Veritas China Fund B EUR

€ 137.73

-

-0.59 0.00

-0.10 0.59

Veritas Global Focus Fund B USD $ 17.44

-

-0.23

The Resolution Fund (1200)

(UK)

Tel 0870 870 8434 Authorised Inv Funds Global Fixed Income D Acc F

102.60

-

-

1.02

-

0.00 0.59

Veritas Global Focus Fund B GBP £ 19.97

-

-0.26 1.78

Global Yield B Acc F

116.70

-

-0.50 1.61

Veritas Global Focus Fund B EUR € 14.03

-

-0.29 1.82

Global Yield B Inc F

110.20

-

-0.40 1.62

Veritas Global Equity Income Fund B GBP £ 141.26

-

-1.35 4.52

Global Balanced B Acc F

127.40

-

-0.70 0.37

Veritas Global Equity Income Fund B EUR € 179.40

-

-3.11 4.26

Global Balanced B Inc F

123.00

-

-0.60 0.37

Veritas Global Equity Income Fund B USD $ 123.45

-

-1.25 4.52

Global Growth B Acc F

134.70

-

-0.90 0.29

Veritas Global Real Return Fund B USD $ 19.13

-

-0.16 1.64

Global Growth B Inc F

126.30

-

-0.80 0.29

Veritas Global Real Return Fund B GBP £ 10.76

-

-0.09 1.65

Veritas Global Real Return Fund B EUR € 12.45

-

-0.10 1.46

Real Return Asian Fund USD (Est) € 277.97

-

-1.26 0.00

Real Return Asian Fund GBP (Est) £ 295.97

-

-1.33 0.00

Real Return Asian Fund EUR (Est) $ 290.68

-

-1.14 0.00

Global Fixed Income D Inc F

£

Global Equity Fund B Acc F

127.30

-

-1.10 0.32

1.27

-

-0.01 0.32

UK Income Focus B Inc F

63.80

-

-0.50 3.29

Veritas Asset Management LLP

UK Income Focus B Acc F

83.70

-

-0.70 3.22

UK Balanced B Inc F

68.30

-

-0.40 1.36

www.veritas-asset.com Other International Funds

UK Balanced B Acc F

74.30

-

-0.50 1.34

UK Growth B Acc F

74.90

-

-0.60 1.21

UK Growth B Inc F

82.70

-

-0.80 1.20

UK Equity B Acc F

82.40

-

-1.10 2.36

UK Equity B Inc F

75.90

-

-1.10 2.39

£

(UK) Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP Authorised Funds TM New Court Fund A 2011 Inc

£ 12.76

-

-0.05 0.00

TM New Court Fund - A 2014 Acc £ 12.78

-

-0.06

TM New Court Equity Growth Fund - Inc £ 12.82

-

-0.07 0.00

-

Virgin Money Unit Trust Managers Limited (1700)F (UK) Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL www.virginmoney.com Authorised Inv Funds Virgin UK Index Tracking Trust

233.20

-

-1.30 1.08

Virgin Income Trust

122.90

-

-0.40 1.03

Virgin Pension Growth Fund

264.40

-

-1.40 2.66

Virgin Pension Income Protector Fund

261.50

-

-0.90 2.41

Virgin Climate Change Fund

101.74

-

-0.25 0.00

Waverton Investment Funds Plc (1600)F

$ 19.11

-

-0.16 1.06

European Fund A Eur

€ 16.29

-

-0.17 0.35

Global Bond Fund Cls A

$

9.16

-

-0.05 5.00

Global Equity Fund A GBP

£ 14.31

-

-0.18 0.25

1.13 0.00

UK Fund A GBP

£ 12.50

-

-0.18 1.92

Waverton Equity Fund A GBP

£ 14.44

-

-0.14 0.00

-

-0.03 5.15

Toscafund

(CYM)

Regulated Tosca

$ 268.58

-

Tosca Mid Cap GBP

£ 221.47

-

0.03 0.00

Tosca Opportunity B USD

$ 313.41

-

20.23 0.00

Waverton Sterling Bond Fund A GBP £

9.87

Wesleyan Assurance Society

-

-0.0278 1.48

-

-0.0095 1.65

Global Balanced Fund - Accumulations Units £ 1.5094

-

-0.0109 1.64

Global Fixed Interest Fund

£ 1.0421

-

-0.0034 3.57

Pens Managed Fd

Sterling Fixed Interest Fund

£ 0.8707

-

0.0035 3.79

Pens Managed Fd Ser 2

UK Equity Fund

£ 1.8556

-

-0.0243 2.87

(UK)

Colmore Circus, Birmingham, B4 6AR 0121 200 3003 Insurances Managed Fd

TreeTop Asset Management S.A.

(LUX)

Regulated TreeTop Convertible Sicav

£ 12.85 13.49 -0.08

-

939.80 986.80 -8.80

-

£

9.11

9.11 -0.08

WA Fixed Income Fund Plc

-

(IRL)

Regulated European Multi-Sector

€ 119.50

-

-0.25 0.00

Santander Atlas Port 3 Acc Ret

146.10

-

-0.50

-

International A

€ 290.25

-

-2.81 0.00

Santander Atlas Port 3 Inc Ret

102.30

-

-0.30

-

International B

$ 373.33

-

-3.61 0.00

Santander Atlas Port 3 Acc Inst

159.90

-

-0.50

-

Stenham Asset Management Inc

International C

£ 129.50

-

-1.26 0.00

Santander Atlas Port 4 Acc Ret

176.70

-

-0.90

-

www.stenhamassetmanagement.com Other International Funds

International D

€ 275.91

-

-2.67 0.00

Winton Futures USD Cls B

$ 1011.39

-

55.98 0.00

Santander Atlas Port 4 Inc Ret

128.40

-

-0.60

-

Stenham Asia USD

$ 133.56

-

1.99

Pacific A

€ 287.90

-

-1.84 0.00

Winton Futures EUR Cls C

€ 283.52

-

15.81 0.00

Santander Atlas Port 4 Acc Inst

160.00

-

-0.80

-

Stenham Credit Opportunities A Class USD $ 105.40

-

-0.45 0.00

Pacific B

$ 362.84

-

-2.26 0.00

Winton Futures GBP Cls D

£ 309.69

-

17.56 0.00

Santander Atlas Port 5 Acc Ret

187.50

-

-1.20

-

Stenham Emerging Markets USD B1 $ 110.30

-

0.53 0.00

Winton Futures GBP Cls F

£ 119.45

-

6.77 0.00

Santander Atlas Port 5 Acc Inst

158.60

-

-1.00

-

Stenham Gold USD

$ 158.16

-

3.48 0.00

Global Opp.A

€ 138.67

-

-1.81 0.00

Winton Evolution USD Cls F

$ 1609.84

-

87.71 0.00

Santander Atlas Port 6 Acc Ret

258.00

-

-1.80

-

Stenham Growth USD

$ 213.94

-

3.78

Global Opp.B

$ 141.14

-

-1.89 0.00

Winton Evolution EUR Cls H

€ 1263.26

-

69.05 0.00

Santander Atlas Port 6 Acc X

184.20

-

-1.30

-

Stenham Healthcare USD

$ 167.88

-

3.18 0.00

Global Opp.C

£ 175.26

-

-2.40 0.00

Winton Evolution GBP Cls G

£ 1281.79

-

71.02 0.00

Santander Atlas Port 6 Acc Inst

157.70

-

-1.10

-

Stenham Helix USD

$ 103.94

-

2.10 0.00

Sequoia Equity A

€ 135.69

-

-1.69 0.00

Winton Futures JPY Cls E

¥ 19902.39

-

1173.41 0.00

Santander Atlas Port 7 Acc Ret

201.20

-

-1.50

-

Stenham Managed Fund USD

$ 113.35

-

1.90

-

Sequoia Equity B

$ 145.22

-

-1.82 0.00

Santander Atlas Port 7 Acc Inst

159.00

-

-1.10

-

Stenham Multi Strategy USD

$ 118.10

-

2.06

-

Sequoia Equity C

£ 159.80

-

-2.05 3.67

Max 70% Shs Acc Ret

160.60

-

-0.80

-

Stenham Quadrant USD A

$ 386.99

-

7.40

-

Max 70% Shs Inc Ret

137.00

-

-0.70

-

Stenham Trading Inc USD

$ 112.33

-

2.15

-

Investments Inc Acc Ret

154.40

-

0.90

-

Stenham Universal USD

$ 439.55

-

7.34

-

Investments Inc Inc Ret

104.30

-

0.60

-

Stenham Universal II USD

$ 163.65

-

2.66 0.00

Equity Inc Inc Inst

227.60

-

-2.20

-

Equity Inc Inc Ret

196.40

-

-2.00

-

N&P UK Gwth Inc Ret

156.20

-

-2.40

-

Stckmkt 100 Track Gwth Acc Inst

91.49

-

-1.26

-

Stckmkt 100 Track Gwth Acc Ret

168.00

-

-2.30

-

UK Growth Acc Inst

265.40

-

-4.30

-

UK Growth Acc Ret

309.40

-

-4.90

-

UK Growth Inc Ret

208.10

-

-3.30

-

Glob Em Shs Port Acc Ret

165.90

-

-1.20

-

Max 70% Shs Port Acc Ret

248.50

-

-1.10

-

Max 70% Shs Port Acc X

178.40

-

-0.80

-

Investment Port Acc Ret

230.10

-

0.60

-

Investment Port Acc X

163.10

-

0.50

-

Max 50% Shs Port Acc Ret

239.40

-

-0.40

-

Max 50% Shs Port Inc Ret

216.70

-

-0.40

-

Managed OEIC

Stratton Street Capital (CI) Limited

-

¥ 1080.94

-

TreeTop Global Sicav

84.18 0.00 0.00

Yuki International Limited

-

-

0.69 0.00

Troy Asset Mgt Ltd

Japan Synthetic Warrant US Dollar Hedged Participating Shares $ 125.29

-

0.00

Renminbi Bond Fund AUD Cls A A$ 117.85

-

-0.58 3.66

Renminbi Bond Fund AUD Cls B A$ 119.52

-

-0.59 3.43

40 Dukes Place, London EC3A 7NH Order desk: 0845 608 0950, Enquiries 0845 608 0950 Authorised Inv Funds ACD Capita Financial Mgrs

Renminbi Bond Fund CHF Cls A SFr 118.05

-

-0.60 3.28

Trojan Investment Funds

Renminbi Bond Fund CHF Cls B SFr 117.76

-

-0.60 3.05

Spectrum Fund 'O' Acc

154.69

-

-0.64 0.27

Renminbi Bond Fund CNH Cls A CNH 120.04

-

-0.79 3.38

Spectrum Fund 'O' Inc

151.19

-

-0.62 0.27

Renminbi Bond Fund CNH Cls B CNH 119.72

-

-0.79 3.15

Trojan Fund O Acc

252.49

-

-1.29 0.64

Renminbi Bond Fund Euro Cls B

€ 118.49

-

-0.60 3.04

Yuki Asia Umbrella Fund

Trojan Fund O Inc

210.39

-

-1.08 0.64

Renminbi Bond Fund GBP Cls B

£ 119.59

-

-0.60 2.95

Trojan Capital O Acc

199.24

-

-1.89 0.95

Renminbi Bond Fund SGD Cls B S$ 118.51

-

-0.58 3.28

Trojan Capital O Inc

171.27

-

-1.63 0.95

Renminbi Bond Fund USD Cls B

-

-0.61 3.23

Trojan Income O Acc

248.22

-

-2.62 3.74

$ 118.96

(UK)

(IRL)

Tel +44-20-7269-0207 www.yukifunds.com Regulated Yuki Mizuho Umbrella Fund

Japan Synthetic Warrant Fund USD Class $ 11.64

-

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.

Give your funds maximum exposure

Other International Funds

(GSY)

Japan Synthetic Warrant GBP Hedged Participating Shares £ 126.09

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.

Winton Capital Management

Regulated Japanese Synthetic Warrant

Guide to Data

(IRL)

Asia Pacific A USD

£ 1.7584

-

Data as shown is for information purposes only. No offer is made by Morningstar or this publication.

[email protected] FCA Recognised

Global Balanced Fund - Income Units £ 1.3253

287 St Vincent Street, Glasgow G2 5NB, 0845 6000 181 Authorised Funds Santander Atlas Range

Data Provided by Morningstar

Retail

Daiwa Equity Fund Series

Santander Asset Management UK Limited (1200)F (UK)

Authorised Inv Funds

VT Odey Total Return Fund Class A £ 100.41

-

(LUX)

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

(GSY)

Renasset Select Funds Plc

€ 118.21

RobecoSAM

0.08 0.00

Thesis Unit Trust Management Limited

0.15 0.00

$ 150.16

9.66

Monthly Dividend High Yield

-0.27 0.00

Odey Odyssey USD I

Global Advantage Real Return Fund Inst Acc $

23.83 0.00

Regulated

92.05 94.18 0.23 5.28

-0.84 0.00

$ 12.80

-

SMT Fund Services (Ireland) Limited

Ethical Bond Inc

-

36.99 0.00

SWMC Small Cap European Fund B EUR € 12458.84

-

-

120.05

-

90.89

0.00

1211.30 1252.49 -14.33 3.94

$ 847.70

-24.00 0.00

-

-

Income Acc

Estimated NAV

-

£ 9960.03

0.01

Multi Asset Enhanced Growth Acc

Other International Funds

€ 14180.98

SWMC UK Fund B

NZ$

1.55 0.00

Omnia Fund Ltd

SWMC European Fund B EUR

New Zealand Dllr Pfolio

-

8.71

Regulated

208.77 215.38 -2.42 4.05

Pictet-Small Cap Europe-I EUR F € 892.65

-1.28 0.00

90.58 91.15 -1.05 4.81

Blue Chip Income Acc

-0.41 0.00

-

Charity Value and Income Fund Inc

-

-0.42 0.00

€ 211.13

128.70 129.50 -1.50 4.68

0.00

-

Odey Opportunity EUR I

179.30 189.70 -1.10 1.71

-

-

www.odey.com/prices FCA Recognised

S & W Marathon Trust Charity Value and Income Fund Acc

0.01

£ 123.92

8.12

(IRL)

-14.00 0.45

C$

€ 123.35

CommoditiesPLUS111sp Strategy - Inst Acc $

S W Mitchell Capital LLP

-

MENA UCITS Fund *

Global Equity Fund B Inc F

Canadian Dllr Pfolio

Odey Naver Fund GBP I Class

(IRL)

Regulated

(UK)

25 Moorgate, London, EC2R 6AY 0141 222 1150 Authorised Inv Funds

145.61 150.33 -1.69 4.19

Odey Naver Fund Euro I Class

Odey Wealth Management (CI) Ltd

Smith & Williamson Fd Admin Ltd (1200)F (CYM)

Blue Chip Income Inc

Pictet-Select-Callisto I EUR

-1.26 4.48

-

0.73 0.00

Odey Allegra Developed Markets Fund USD I $ 126.45

-3.38 4.22

-

€ 200.29

SKAGEN Vekst

0.60 0.00

Odey Allegra International GBP A D £ 131.13

-

Veritas Global Equity Income Fund A USD $ 123.91

-

-

-1.34 5.19

Veritas Global Equity Income Fund A EUR € 194.53

-3.87

-

-

-1.46 4.48

-1.68

€ 237.67

Putnam New Flag Euro High Yield Plc - E € 1038.26

-

-

$ 237.76

-48.95 0.00

-0.35 0.00

Veritas Global Equity Income Fund A GBP £ 152.79

-

Odey Allegra European EUR I

-113.73 0.00

-0.44 0.00

-

Veritas Global Equity Income Fund C EUR € 223.39

-

-

Odey Allegra European USD O

-

-

Veritas Global Focus Fund C USD $ 26.08

Veritas Global Equity Income Fund C GBP £ 175.63

S W Mitchell Capital LLP

-

Veritas Global Focus Fund C EUR € 21.12

-0.18

0.14 0.00

¥ 14790.61

-0.37 0.00

-1.05 0.00

-0.21 0.00

Pictet-Japanese Equities Opp-I JPY F ¥ 8719.17

-

-

-

Pictet-Japan Index-I JPY F

Veritas Global Focus Fund C GBP £ 28.15

-

-

-2.09 0.00

-0.24 2.28 -0.33 2.34

€ 15.43

€ 150.12

-1.57 0.00

-

€ 73.66

Pictet-Global Bds Fundamental I USD $ 126.65

-

Veritas Global Focus Fund A EUR € 11.77 Veritas Global Focus Fund A USD $ 24.11

SKAGEN m2

Pictet-Global Bonds-I EUR

-

-0.34 2.25

SKAGEN Kon-Tiki

0.62 0.00

Odey Allegra International GBP D inc £ 177.72

-

0.11 0.00

0.46 0.00

Odey Allegra International Euro I Class € 145.26

-0.34 2.48

Veritas Global Focus Fund A GBP £ 26.10

-5.62 0.23

-

-5.30 0.00

-

-

-

-

-0.42 2.88

Veritas Global Focus Fund D GBP £ 27.04

-

£ 282.52

$ 447.88

-

475.56

€ 149.79

Pictet-Indian Equities-I USD F

-0.34 2.78

Veritas Global Focus Fund D EUR € 20.19

373.74

Odey Allegra European GBP O

-1.77 0.00

-

European C Acc

Odey Allegra European EUR A

-2.30 0.00

-1.52 4.47

Veritas Global Focus Fund D USD $ 24.99

Equity & General O Acc

AED 10.50

TNI Funds Ltd (BMU) TNI Funds Plc (Ireland)

0.77 0.00

-

-3.46 4.20

-

-0.95 0.00

UAE Blue Chip Fund * MENA Hedge Fund

-

-

-

Veritas Global Equity Income Fund D GBP £ 159.02

-

(NOR)

€ 249.04

$ 155.01

Veritas Global Equity Income Fund D EUR € 199.73

€ 136.81

SKAGEN Funds

Odey Allegra European EUR O

Odey Allegra International GBP Class £ 196.17

-1.30 4.47

SKAGEN Global

(UK)

Odey Allegra International USD

-

0.10 0.00

-0.77 0.00

(IRL)

-0.54 0.00

Veritas Global Equity Income Fund D USD $ 128.44

0.13 0.25

-

Pictet-India Index I USD

-

-

$ 158.59

(JER)

€ 131.39

-

Prusik Asian Smaller Cos A

-1.81 0.14

-0.55 0.00

Veritas China Fund A EUR

346.87

0.00 1.65

-

-0.54 0.00

-

347.34

-0.01 1.63

153.81

-

£ 135.08

Equity & General O Inc

-

Global Total Fd PCG INT

www.tni.ae Other International Funds

$ 133.19

Veritas China Fund A GBP

Equity & General C Inc

386.49

-1.83 0.36

-13.30 0.76

Veritas China Fund A USD

0.14 0.25

Total Return O Acc

-

-

-3.81 0.47

-

-1.32 0.00

155.67

SFr 188.80

-

376.36

-

Global Total Fd PCG B

LTIF Stability Inc Plus

€ 279.42

Equity & General C Acc

$ 199.14

-2.80 0.00

The National Investor (TNI)

-2.86 0.50

Veritas Asian Fund A EUR H

PO Box 160, 4001 Stavanger, Norway Tel (47) 51 21 38 58 www.skagenfunds.com FCA Recognised

Prusik Asia A

-

-5.10 0.73

-1.98 0.67

-

0.93 0.00

-

$ 271.79

-

-

0.94 0.00

-

Pictet-Generics-I USD F

SFr 212.60

$ 300.57 £ 355.11

-

271.36

-1.85 0.58

LTIF Stability Growth

Veritas Asian Fund A USD H Veritas Asian Fund A GBP H

-

273.34

-

Other International Fds

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

74.51

Total Return O Inc

157.06

SIA (SIA Funds AG) (CH)

-0.08 0.00

75.05

Total Return C Inc

Global Total Fd PCG A

-1.18 0.00

-

Baker Steel Gold O Acc

-1.02 4.19

-0.47 0.00

-

Value Partners Classic Equity USD Hedged $ 13.23

(IRL)

Baker Steel Gold C Acc

-

Purisima Investment Fds (UK) (1200)F

(LUX)

(UK)

Prusik Asian Equity Income B Dist $ 156.60

-

€ 146.39

(IRL)

Regulated

-0.60 0.90

€ 216.09

Pictet-Premium Brands-I EUR F

The Hartford International Funds

-

Regulated

-2.68 5.78

IGV - Acc Y

-

Private Fund Mgrs (Guernsey) Ltd

-

0.00 0.51

124.30

$ 1392.81 1410.22 10.01 0.00

228.99

-0.01 3.15

124.60

Polunin Small Cap

F

-

Your Portfolio Fund VI Class 1

-

UK Income B Inc

-

Your Portfolio Fund V Class 2

7.80

-2.88 5.56

1.30

£ 10.64 10.64 0.09

-

-

1.44

UK Absolute Equity I GBP

Polunin Discovery - Frontier Markets $ 1547.54

245.98

£

SIA (SIA Funds AG)

-

F

£

-0.50 0.60

22.64 0.00

-2.55 5.81

UK Income B Acc

Saracen Global Income and Growth Fund -Dist

-

-

-

Saracen Global Income and Growth Fund -Acc

125.10

$ 846.75 853.95 -12.58

217.12

www.valuepartners.com.hk / [email protected] Regulated

Your Portfolio Fund V Class 1

$ 945.55

F

Value Partners Hong Kong Limited

$ 16.93 16.93 -0.26 0.00

Polunin Developing Countries

-2.74 5.59

UK Income A Inc

-4.10 1.31

North American I USD

Luxcellence Em Mkts Tech

-

-

-0.02 0.00

-

233.33

395.50

-

0.63 0.00

F

IGV - Acc X

1.39

0.73

-1.73 0.87

UK Income A Acc

-0.01 2.71

¥

-

-

-0.01 0.35

Global Eq (ex Japan) Class HJ4

-

380.45

-

-0.40 1.20

$ 38.29

F

-

-

$ 41.46

-1.77 0.09

UK Smaller Cos B Inc

1.11

120.70

Emerging Markets Active

-

1.16

Your Portfolio Fund IV Class 2

Developing Countries 'A'

388.82

Saracen Global Income & Growth Fund A - Dist £

-0.01 0.00

CF Ruffer Investment Funds

F

Saracen Global Income & Growth Fund A - Acc £

-

-0.03 0.00

-1.70 1.32

UK Smaller Cos A Inc

-3.40 1.07

1.34

-

-

-3.50 1.80

¥

€ 180.57

225.08

-

Global Eq (Ex Japan) Index Fund

European Forager A EUR

F

-

¥ 1897.21

40 Dukes Place, London EC3A 7NH Order Desk and Enquiries: 0845 601 9610 Authorised Inv Funds Authorised Corporate Director - Capita Financial Managers

-1.64 0.51

Outstanding British Cos B Acc

328.20

Japan I JPY

Ruffer LLP (1000)F

-

329.10

5.12 0.00

-0.13 0.00

216.96

IGV - Inc B

10.41 0.00

-

F

IGV - Inc A

-

€ 162.39

-1.18 0.41

Outstanding British Cos A Acc

0.01 0.22

-

European Conviction A EUR

-

0.00 0.30

£ 1555.54

-0.18 0.00

-2.09 0.24

306.66

-

£ 1555.69

-

-

-

Gilt

$ 126.31

-1.33 0.00

375.99

5.30

UK Corporate Bond

ALVA Convertible A USD

F

-2.09 0.00

-

3.33

Schroder Property Managers (Jersey) Ltd

Senator House 85 Queen Victoria Street, London EC4V 4ET CBF Church of England Deposit Fund 0.50 - 0.50 Qtr

www.morningstar.co.uk -

£

Continental

-

342.04

£

-

-51.77 0.00

375.39

Saracen Growth Fd Beta Acc

-2.40 0.00

Pictet-European Sust Eq-I EUR F

0.00 0.00

Mastertrust B Inc

-1.50 0.00

-0.19 0.00

-

-

-

-

1.26

-9.78

-

£ 200.85

£

-

232.00

Odey Pan European GBP R

Odey Atlas Fund GBP I S

Strategic US Momentum and Value CHF Hedged Class CHFSFr 549.24

221.30

-4.37 0.00

-

UK Growth B Inc

Managed Growth

-0.61 0.00

-0.27

-

UK Growth

-

-

-9.83

-0.40 0.80

-

£ 104.96

-

F

Saracen Growth Fd Alpha Acc

. For Save & Prosper please see Countrywide Assured

-

(UK) PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287 Authorised Inv Funds

Strategic US Momentum and Value EUR Hedged Class EUR € 551.05

-0.30 1.10

(CYM)

€ 24.78

Unicorn Asset Management Ltd

UK Growth A Inc

International

CCLA Investment Management Ltd

Investments IV - Global Private Eq. € 429.57 451.05 0.00 0.00

Mastertrust A Inc

-

-

Investments III

-0.72 0.00

50 Bank Street, Canary Wharf, London E14 5NT Admin: 50 Bank Street, Canary Wharf, London E14 5NT Dealing & Enquiries: 0870 870 8433 Authorised Inv Funds THS Growth & Value Funds

Gross AER Int Cr

(LUX)

Investments IV - European Private Eq. € 307.74 323.13 0.00

-14.10 0.00

Taube Hodson Stonex Ptnrs UT (1200)F

-

Gross Net

Regulated

-

(UK)

-

Unicapital Investments

-

-

-13.55 0.00

0.68 3.29

Senator House 85 Queen Victoria Street, London EC4V 4ET COIF Charities Deposit Fund 0.45 - 0.45 Qtr

$ 1056.44

121.10

-

-

Money Market Trusts and Bank Accounts

CCLA Fund Managers Ltd

Strategic US Momentum and Value Fund $ 789.27

115.90

€ 155.38

Odey Atlas Fund GBP I

Strategic Global Bond USD Acc

Your Portfolio Fund IV Class 1

Pictet-European Equity Selection-I EUR F € 549.00

-

1.65 0.00

Your Portfolio Fund III Class 2

-0.02 0.00

Odey Allegra Developed Markets Fund GBP I £ 125.07

0.27 0.00

-

1.61 -0.01 0.00

1.61

-

-

-

¥ 193.81 193.81 -0.82 0.00

€ 316.18

Odey Allegra International Euro Class € 158.68

Strategic Euro Bond Fund Distributing Class Shares € 1060.99 Strategic Global Bond RMB Acc CNY 1084.41

Japan Alpha I JPY

Odey Pan European EUR R

(IRL)

FCA Recognised

Growth

Income

40 Dukes Place, London EC3A 7NH Order Desk 08459 22044, Enquiries: 0870 607 2555 Authorised Inv Funds Authorised Corporate Director - Capita Financial Managers

Odey Asset Management LLP

-3.90 2.64

Cautious Growth

Other International Funds

-

-

0.01 0.00

Polunin Capital Partners Ltd

Pictet-Emerging Markets Sust Eq I USD $ 98.66

269.40

-0.08 1.95

0.25 0.00

Pictet-Emerging Markets High Dividend I USD $ 108.72

FTSE 100 Tracker Standard

-

-

-0.19 0.00

-2.80 2.89

-

SFr 496.01

-

-

9.85

-1.17 0.00

Pictet-Emerging Corporate Bonds I USD $ 104.59

197.30

$ 12.30

-17.56 0.00

-1.70 0.00

FTSE 100 Tracker Special 3

$

-

-5.97 0.00

-4.10 3.13

GEM Growth I USD

-

-

-

Financial Opps I USD

$ 59.15

-

284.50

-1.20 0.70

$ 775.04

Pictet-Emerging Markets Index-I USD F $ 244.22

FTSE 100 Tracker Special 1

-

Pictet-Brazil Index I USD

Pictet-Emerging Markets-I USD F $ 538.69

0.60 3.27

140.50

Pictet-Biotech-I USD F

0.37 0.00

-

Balanced Growth

-0.39 0.00

-0.70 0.00

106.80

€ 10.17 10.17 -0.01

-

-

Extra Income

European Income Acc EUR

Pictet-Asian Local Currency Debt-I USD F $ 155.24

-

-3.60 3.86

-1.20 0.50

-2.04 0.00

$ 179.11

-1.70 1.15

-

-0.70 1.44

-

€ 284.68

-

314.50

-

Pictet-Asian Equities Ex Japan-I USD F $ 217.51

Pictet-Em Lcl Ccy Dbt-I USD F

277.00

Equity Income

-

-1.64 0.00

Pictet-Eastern Europe-I EUR F

Balanced Inc

143.80

-

-2.99 0.00

-2.10 1.15

162.90

€ 174.68

-

-

Adventurous Growth

Polar Capital LLP

Pictet-Digital Communication-I USD F $ 235.87

339.60

Stakeholder Investment

Regulated

0.58 0.00

Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 79539.00

-

B Shares

$ 16.09 16.09 -0.22 0.00

-

-

0.14

0.30 0.00

$ 297.30 297.30 -2.59 1.00

$ 36.08

0.20

-

0.28 0.00

Biotechnology I USD

-

-

93.42

-

Asian Financials I USD

-

142.20

-

-0.01 1.15

1.24 51.95

0.00 4.97

Bond Mthly Inc Inc Ret

262.90

£

-

Bond Mthly Inc Acc Ret

510.60

UBS Targeted Return B Acc UBS Sterling Corporate Bond Indexed Fund

-

0.43

-1571.00 0.00

Sterling Bonds

-0.01

UBS Emerging Markets Equity Income B Inc £

-

Pacific Bas (ex-Japan)

-

-0.02 0.00

Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 81882.00

-

0.00 0.46

0.50

-

-

0.10

-

£

-

260.50

-

0.56

UBS S&P 500 Index C Acc

1.37

Bal Intl Track Acc Ret

139.90

UBS Asian Consumption Fund - B Acc £

0.50

-1873.00 0.00

Japan Equities

-0.03 0.22

£

Strategic Euro Bond Fund Accumulating Class Shares € 1160.32

143.90 151.30 -2.70 0.00

-

UBS US Growth Fund B Acc

0.25 0.00

Additional Funds Available Please see www.cis.co.uk for details

1.39

UBS Global Enhanced Equity Income C Inc £

-

US Growth

£

0.00 4.00

Strategic Euro Bond Institutional Class EUR € 1031.76

-

-0.82 0.00

US Equity B Acc

-0.01 1.61

50.54 0.00

-

-

-

-

-

Zebedee Focus Fund Limited Class A USD $ 170.38

-

-

Platinum Global Dividend Fund - A (Est) $ 64.48

-0.01 2.44

1.07

-

-

-1.19 0.00

-

0.54

Nippon Growth (UCITS) Fund JPY Class A shares ¥ 97617.00

-1.30

-

0.86

UBS Global Allocation (UK) B Acc £

-24.06 0.00

-

Zebedee Focus Fund Limited Class B USD Shares $ 197.30

UBS UK Opportunities Fund B Acc £

Corporate Bond UK Plus B Inc Net £

-20.52 0.00

(CYM)

-0.02 1.04

-10.34 0.00

-

-0.96 0.00

Regulated

-0.02 0.69

-

-

-

Zebedee Capital Partners LLP

-

$ 933.40

Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1249.12

-0.44 0.00

-

Strat Evarich Japan Fd Ltd USD

Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 1066.99

-

1.33

0.00 5.22

-

£ 104.33

0.98

-

-

Memnon European Fund I GBP

£

0.39

1.10

(LUX)

FCA Recognised

£

UBS UK Equity Income B Inc Net £

-1.60

+/- Yield

Global Optimal B Acc

-1047.00 0.00

-

Offer

Global Emerg Mkts Eqty B Acc

-

(IRL)

Bid

Zebedee Focus Fund Limited Class A EURO Shares € 169.78

¥ 93470.00

-

265.30

21 Lombard Street, London, EC3V 9AH Client Services 0800 587 2113, Client Dealing 0800 587 2112 www.ubs.com/retailfunds Authorised Inv Funds OEIC

Strat Evarich Japan Fd Ltd JPY

208.90

Europe (ex-UK)

(UK)

0.00 3.86

E.I. Sturdza Funds PLC

Fund

Zadig Gestion (Memnon Fund) UBS Global Asset Mgmt Fds Ltd

-

162.20

A Shares

+/- Yield -1.72 3.87

0.51

Strategic Euro Bond Accumulating Class CHFSFr 1021.45

224.00 235.80 -1.70 4.49

-

UBS Multi Asset Income B Inc (net) £

Strategic China Panda Fund Hedged Sterling £ 2223.81

-4.40 1.19

Offer

2421.00 0.00

Corp Bond Acc Inst

-2.20

163.36

-

Div Inc Port Inc Ret

-

Bid

Trojan Income O Inc

¥ 100234.00

Regulated

Multi-Manager OEIC

Fund

Nippon Growth Fund Limited

287 St Vincent Street, Glasgow G2 5NB 0845 605 4400 Authorised Inv Funds Santander Premium Fund (OEIC)

-

UK Income With Growth

-

Regulated

98.95 104.20 -0.53 1.78 431.40

-

-0.12

E.I. Sturdza Strategic Management Limited (GSY)

49.77 0.00

-

-

-0.55 3.28 -0.03 0.00

51.25 0.00

-

-

-

0.53

-

$ 112.60

7.05

€ 109.04 £

-

462.60 486.90 -6.30 1.11

Platinum Essential Resources UCITs Fund $

Renminbi Bond Fund EUR Class Poland Geared Growth

Strategic China Panda Fund USD $ 2256.71

UK Growth

Platinum Arbitrage Opportunities Fund Ltd Class A (Est) $ 93.87

¥ 18829.00

+/- Yield

Strategic China Panda Fund Hedged EURO € 2194.91

Other International Funds Platinum All Star Fund - A

Renminbi Bond Fund YEN Cls B

Santander Asset Management UK Limited (1200)F (UK)

Sustainable Leaders

A

Fund

90.14 94.88 0.38 4.13

Platinum Capital Management Ltd

-0.60 0.00

-1.95 0.00

-94.00 0.00

Global Spec Inv Grade Bd Fund GBP £ 10.33

-

-

-0.77 3.51

-

-0.08 0.00

€ 122.98

-

-

Renminbi Bond Fund YEN Class

-

Pictet-Absl Rtn Glo Div-I EUR F

$ 111.05

Renminbi Bond Fund SGD Class S$ 157.07

-

PIMCO EqS Pathfinder.Eur.Fd Inst Acc F € 14.00

-

$ 86.81

-

-

-0.05

Pictet-Clean Energy-I USD F

-0.79 3.18

-0.10

-

Pictet-China Index I USD

-0.84 3.46

-

-

€ 107.20

Pictet-CHF Bonds I CHF

-

152.60

Pictet-Absl Rtn Fix Inc-HI EUR Pictet-Agriculture-I EUR F

$ 164.12 £ 159.50

Max 30% Shs Port Acc X

Income Opportunities B2 I GBP Acc £

Pictet Funds (Europe) SA

Renminbi Bond Fund USD Class Renminbi Bond Fund GBP Class

-0.13 0.90

Healthcare Opps I USD

CF Odey Portfolio Fund R Inc

-

-0.04 3.54

Healthcare Blue Chip Fund I USD Acc $ 10.65 10.65 -0.14

Odey Asset Management LLP

-62.53 0.00

-

Regulated

Investment Holdings N.V.

-

-

Polar Capital Funds Plc

Macro Holdings Ltd

Offer

9.53

-0.25 0.17 -0.28 0.00

Bid ¥ 12724.70

£ 11.71

(IRL)

-

OasisCresGl LowBal D ($) Dist

-

Global Emerg Mkts Equity Fund

-0.07 0.00

Oasis Crescent Global Equity Fund $ 27.86

+/- Yield

UK Specialist Equity Income Fund £

Balanced Acc

Oasis Crescent Global Investment Fund (Ireland) plc $ 11.10

-0.30

0.00 0.00

Regulated Oasis Global Investment (Ireland) Plc $ 27.41

-

PO Box 9908, Chelmsford, CM99 2AF 0845 300 2585 Authorised Inv Funds

Oasis Global Mgmt Co (Ireland) Ltd

Offer

-0.12 0.00

Other International Funds

Oasis Global Equity

173.30

-

Platinum Global Dividend UCITS Fund $ 75.72 75.72 -0.41 6.26 -0.06 0.00

Bid

Max 50% Shs Port Acc X

-

Corporate Bd Inc Tst

Orbis Japan Equity (Euro)

+/- Yield

8.30

(LUX)

Orbis Japan Equity (Yen)

Fund

-0.07 0.35

Low Average Duration - Inst Acc $ 14.71

Oasis Crescent Management Company Ltd -

-

PIMCO EqS Emerging Markets Fund Inst Acc $

Regulated

NAV (Fully Diluted)

9.50

Offer

CIS Sustainable Diversified Trust A £

Other International Funds

R

Bid £ 18.88

Max 30% Shs Port Acc Ret

*Orbis Prices as of December 4th

Oryx International Growth Fund Ltd

Oasis Crescent Equity Fund

Fund

Yuki Mizuho Japan Dynamic Growth ¥ 6679.00

-

-7.00 0.00

¥ 7033.00

-

-53.00 0.00

Yuki Japan Low Price

¥ 25081.00

-

-69.00 0.00

Yuki Japan Value Select

¥ 12055.00

-

-18.00 0.00

¥ 16050.00

-

-1.00 0.00

Yuki Japan Rebounding Growth Fund ¥ 21565.00

-

-62.00 0.00

Yuki Mizuho Japan Large Cap

YMR Umbrella Fund YMR N Growth

Publish your funds in the Financial Times and stand out in an overcrowded market. It’s a powerful way to promote your brand, communicate with your clients and attract new investors. For more information please contact [email protected] or call +44 (0) 20 7873 3132

32

★★★

FINANCIAL TIMES

Friday 12 December 2014

MARKETS & INVESTING Capital markets

Early Argentina ‘holdouts’ deal in doubt

Beyondbrics

EM rout highlights China’s caution on currency reforms For those frustrated by slow progress towards freeing up China’s tightly controlled currency, recent days provide an illustration of why authorities are determined to proceed with caution. Emerging market currencies hit a 14-year low against the dollar this week, hit by concerns about rising debt and slowing exports in emerging markets. Yet amid the turmoil the renminbi has been a relative bastion of stability. Even as the currency hit its weakest level against the dollar in four months on Tuesday at Rmb6.21, it was only a modest 1.6 per cent weaker than the sevenmonth high touched on October 31. By contrast, the JPMorgan Emerging Markets Currency Index fell 5 per cent over the same period. “The jump in USD-RMB in the last two days is sharp by the currency’s own standards,” Wang Ju, forex strategist at HSBC, wrote on Tuesday. “However, given the movements in the rest of Asia, this partially represents a catch up with the likes of the Malaysian ringgit and the Korean won.” Top Communist party leaders pledged in a landmark blueprint for economic reform last November to give market forces a “decisive role” in resource allocation. The plan contained an explicit reference to the exchange rate. Yet despite such pledges, China’s management of its currency in recent days makes clear that authorities remain far from willing to deregulate fully the exchange rate or allow speculators free rein to send waves of capital sloshing in and out. The People’s Bank of China’s stabilising influence on the exchange rate is clear from the deployment of its daily fixing in recent days to restrain the renminbi’s decline. The central parity rate, which signals the central bank’s intention for the exchange rate, is a midpoint from which the spot rate is permitted to fluctuate by 2 per cent above or below. For most of the period

since China’s de-pegging of its currency in 2005, the renminbi’s spot rate consistently traded stronger than the midpoint, a sign that the fixing was acting as a check on market pressure, pushing the renminbi higher. But this pattern reversed late last month, after China cut benchmark interest rates in an attempt to boost its economy, which is on course for its slowest full-year growth since 1990. Even as the spot rate weakened, the central bank set a series of progressively stronger midpoints, widening the gap between spot and fixing. While some viewed this divergence as a tug of war between the central bank and the market, the PBoC’s move was an effort more to moderate the renminbi’s fall than to actively pull it stronger. Such action “indicates the central bank is sending a signal of stability to the market”, said Xie Yaxuan, economist at China Merchants Securities. The PBoC has probably also intervened in the market directly. Forex traders said they saw concerted renminbi buying by big state banks on Tuesday afternoon, following a big drop in the renminbi that morning. Such action typically signals the central bank’s presence in the market. While few expect rapid devaluation in the near term, many investors are starting to question the conventional wisdom that the Chinese currency is a one-way bet to appreciate. Entrenched appreciation expectations are easy to understand. Apart from 2009, following the PBoC’s temporary return to a dollar peg during the height of the financial crisis, the renminbi has risen against the US currency every year since 2005. Now, however, some investors believe a new era of renminbi depreciation may be at hand, especially with the prospect of rate rises by the Federal Reserve next year. The renminbi is now down 2.1 per cent year-to-date in 2014. Additional reporting by Ma Nan in Shanghai

Currencies Rmb per $ 6.00

Emerging markets (JPMorgan trade- weighted index) 90

6.05

88

6.10

86

6.15

84

6.20

82

6.25

80 Jan

2014

Sources: Thomson Reuters Datastream; Bloomberg

Dec

If bond issue and offer is agreed, rushed settlement could be avoided BENEDICT MANDER — BUENOS AIRES

Hopes for a resolution early next year of Argentina’s legal dispute with its “holdout” creditors have faded thanks to a $3bn bond issue and an offer to swap or cash in $6.7bn of debt maturing next year that closes today. If enough investors take up the government’s offer, this could bolster foreign exchange reserves and give Argentina the financial flexibility it needs to avoid being forced into a rushed settlement with a group of US hedge funds led by billionaire Paul Singer’s NML Capital. After negotiations collapsed in July triggering Argentina’s second default in

13 years, markets expect talks to resume in January when a key clause in bond contracts expires. A deal would enable Argentina to resume borrowing on the international capital markets, which it has been unable to do since its 2001 default. But analysts say Argentina may not be in such a rush to borrow abroad if it pulls off the $3bn issue of 2024 bonds under local law, which would sidestep a US court ruling in favour of the holdouts that prevented Argentina from paying its bondholders without paying them too, and so triggering the July default. Still, this financial freedom comes at a price: the 8.75 per cent interest rate on the new bonds is more than double what is paid by other countries in the region such as Brazil, Mexico and even Bolivia, explaining why Argentina has avoided issuing new debt in foreign

currency for more than seven years. The debt swap, which gives investors the opportunity to exchange 2015 bonds for ones that mature in 2024, would take further pressure off Argentina’s financial commitments next year, with the 2015 bonds representing about half of Argentina’s $13bn of debt payments due next year. Meanwhile, the government is billing its offer to investors to receive early payment of their 2015 bonds as another sign of its willingness to pay its debt, despite being prevented from servicing its foreign law bonds by a US court order until it reaches a deal with the holdouts. This will calm market speculation that the government was planning to default on the 2015 bonds next year or convert them into local currency. Nevertheless, there is consensus among analysts that the terms of the

$3bn Country’s bond issue with offer to swap or cash in $6.7bn of debt maturing next year

8.75

% Interest rate on new bonds which is more than double that paid by other countries in region

offer do not offer sufficient incentives to ensure widespread participation, especially among foreign investors who hold around 70 per cent of the bonds maturing in 2015. It remains to be seen whether the government will adjust the terms or extend the offer. Depending on the success of the offer in bolstering foreign exchange reserves, which have also been supported by such measures as a foreign currency swap with China, the government may also be able to postpone a devaluation, which analysts argue will eventually be inevitable. “The strategy of the government could be to muddle through until elections, leaving the resolution of the holdouts issue for the next administration,” said Miguel Kiguel, a former finance secretary who runs the EconViews consultancy.

Analysis. Commodities

Big holder shows up aluminium trade issues Dominant operator highlights long warehouse queues that allow space for large bets

Aluminium LME stocks (tonnes, m)

LME 3-months price ($ per tonne)

5.6 HENRY SANDERSON

For years buyers of aluminium have put the metal in warehouses, borrowed against it, and waited for prices to rise. It was an obvious trade. Now the metal is finally starting to leave warehouses, but much is still held up in long queues. That has opened up space for large trading bets that have raised questions over how efficiently the market is functioning. Aluminium is one of the world’s most important metals, used in cans, cars and aeroplanes and valued for its lightweight properties. It is being used increasingly by US automakers to meet fuel-efficiency standards. The London Metal Exchange acts as a source of metal at times when aluminium is in short supply elsewhere. Exchange data show that at the end of November one entity had accumulated an aluminium holding of 50-79 per cent of the metal on the LME, the world’s largest metals exchange. The appearance of a dominant holder highlights how persistent problems with the working of an official warehouse system have allowed for the placing of large trades. These trades, which are in effect bets on the spread between spot and futures prices, could also give holders increasing influence over prices just as demand for aluminium has picked up due to rising use by the auto industry, while supply has tightened following the closure of smelters. The dominant holder drove the November 27 spot price $31 higher than the price for delivery in three months, the highest spread since December 2012. Since then it has come back down, as rumours that one large trading house had been squeezed by the dominant holder faded. “Queues restrict the lending capacity of the market which leads to a further tightening of the available liquidity,” Robin Bhar, an analyst at Société Générale says. Stocks of aluminium on the LME have fallen 21 per cent this year to 4.3m tonnes, yet more than half of that is sitting in warehouse queues waiting to be loaded out. The actual so-called “free float” metal, in storage and available to trade, is even smaller, say market participants.

2400

5.4 2200

5.2 5.0

2000

4.8 4.6

1800

4.4 4.2

1600

2011 12

13

14

Aluminium premium over LME cash price $ per tonne US midwest free market aluminium EU free market aluminium 600 Singapore aluminium 500 Japan aluminium 400 300 200 100 0 2011

12

13

14

Sources: Thomson Reuters Datastream; Bloomberg

Demand has picked up due to rising use in the auto industry, such as on this Audi assembly line in Germany Thomas Kienzle/AP

In LME warehouses in Detroit, for example, only 16,075 tonnes of stock are in storage, whereas 928,700 tonnes are waiting in the queue. “The person who is effectively building the dominant position only has to go for the free float, and you remove the liquidity from the LME,” one trader says. “By definition you control all the stock that is freely available.” The dominant holding in aluminium has mirrored what has happened in the copper market, where a single entity has also accumulated a majority holding, starting in September. The aluminium market has been the subject of heightened scrutiny in recent years. During a hearing of the US Senate investigation into banks’ commodities business this month, investigators queried how Goldman Sachs came to own about 1.5m tonnes of aluminium in 2012, worth $3.2bn, and more than 25 per cent of annual North American consumption at the time. Goldman

said it had acquired the large position to meet demand from clients. Low interest rates after the financial crisis and a market that has spent long periods in “contango” — where futures prices are higher than current ones — led to mass storage of aluminium in warehouses. Buying and borrowing against the metal and paying warehouse rents while waiting for higher prices provided relatively risk-free returns of up to 7 per cent. Users of the metal have claimed that this inflated costs for consumers, and reduced metal for actual consumption. Indeed, premiums for delivery of physical aluminium in the US, Europe and Japan have risen to record highs this year. Queues for warehouses in Detroit owned by Goldman Sachs and by mining company Glencore in the Netherlands are still more than 550 days. Analysts say this is nothing to worry about as the market self-corrects after the appearance of a dominant holder. In

addition LME rules require that holders with positions greater than 50 per cent must lend metal at fixed rates. “The LME constantly monitors its markets to ensure that trading is orderly,” the LME said in response to a question on aluminium. The LME has also vowed to reduce queues and next year will introduce a contract allowing users to hedge the high aluminium premium. Yet the reduction in queues in Detroit and in the Netherlands is likely to take years, analysts say. Large holders are also likely to continue to appear to squeeze the market. “From a historical standpoint things are definitely not back to normal. The LME for the consumer remains dysfunctional,” Jorge Vázquez, managing director of Harbor Aluminum Intelligence, says. “Today consumers can’t really use the LME as a market of last resort. Maybe conceptually they can but in practice they can’t.”

Currencies

Equities

Strong dollar hits US corporate profits

Sharp sell-off in Greece as outlook fears return

ERIC PLATT — NEW YORK

A strengthening dollar is proving costly to companies across the US and Europe. The rising greenback shaved $8bn off North American and European thirdquarter sales, with more than 275 companies warning of negative foreign exchange impacts in the period, data from consultancy FiREapps show. The dollar, which climbed nearly 8 per cent against the euro and Japanese yen in the quarter to September 30, was an added hitch for companies dependent on foreign sales, particularly as economic growth in Europe and Asia disappoints. The total currency effect on revenues rose 196 per cent from a quarter earlier, the report found, as FX volatility rose. FiREapps, which analysed the earnings

calls of 1,200 publicly traded companies with at least 15 per cent of revenues derived from a foreign market, says that trend will probably continue. US companies that quantified the foreign exchange impact on profits said earnings were on average reduced by 3 cents a share due to currency swings. Diverging monetary policy in Europe and the US has driven a wedge between one of the most active currency pairs, with strategists at Bank of America Merrill Lynch forecasting the euro to weaken by another 10 cents against the dollar by the end of 2016. More than two-fifths of S&P 500 sales were generated abroad in 2013, data from S&P Dow Jones Indices show, presenting a challenge to a vast majority of the index’s constituents. The euro was most often mentioned as a culprit in the 846 US corporate

earnings calls analysed by FiREapps, followed, in order, by the yen, rouble, Brazilian real and Venezuelan bolívar. Executives with Hewlett-Packard, Campbell Soup and Salesforce warned recently that currency headwinds would weigh on results, while Philip Morris International chief executive André Calantzopoulos said his company had “been hammered by currency this year to a much higher degree than we possibly could have anticipated”. General Motors called the Russian rouble “a headwind for us, no question”, with the Turkish lira and UK pound also key to the company’s European results. Strategists note a stronger dollar and weaker pricing power could curtail profit gains, with S&P 500 year-on-year earnings growth expectations currently sitting at 9.3 per cent. That, in turn, could hit stock performance.

CHRISTOPHER THOMPSON

Greek stocks and bonds saw another sharp sell-off yesterday amid mounting fears about the country’s future within the eurozone and rising political uncertainty. Greece’s stock market declined by 7 per cent following the worst one-day fall since the late 1980s earlier this week. Benchmark 10-year government borrowing costs rose by 50 basis points to yield 8.79 per cent. The decline means the Athens bourse has shed nearly a fifth of its value this week after the announcement by Antonis Samaras, prime minister, of a snap presidential election later this month. If he fails to win sufficient support for his candidate, an early general election could follow which investors fear will

bring to power the radical left Syriza party that has campaigned on an antiausterity platform. “Further volatility cannot be ruled out given the event risk over December,” said Peter Goves, an analyst at Citi. Political instability also led investors to price in a greater chance of Greece defaulting on its debt, pushing the costs of insuring benchmark government bonds up by 10 per cent. In contrast to the contagion seen during the eurozone sovereign crisis three years ago, worries over Greece’s future have had a limited impact on other peripheral economies so far. “At the moment you’re seeing a slightly softer tone in the wider periphery — it’s relatively muted but it’s there,” said Mr Goves. “The debt ownership structure of Greek debt has changed considerably

over recent years, with the majority now held in the official sector — so in that sense it’s quite different to 2011.” Italian and Spanish borrowing costs remained broadly stable, although they have risen by 11 basis points and 9bp respectively this week. Didier Saint-Georges, a member of the Paris-based fund group Carmignac’s investment committee, said Greek uncertainty was not “viral” for the rest of southern Europe. “It shows that whole European situation is not hostage to what is happening in Greece,” said Mr Saint-Georges. “We do own a little bit of three- and five-year [Greek] bonds and we are keeping them. The market has reacted a lot domestically — a bit too much — and the fact there’s no contagion shows that it’s not such a game-changer.”

★★★

Friday 12 December 2014

FINANCIAL TIMES

33

MARKETS & INVESTING Global overview

TRADING POST

Jamie Chisholm The eurozone “convergence” trade has worked well for most of 2014. But is it time to bet on a reversal next year? Convergence refers to tightening spreads between the eurozone’s core bond yields, such as Bunds, and the more fiscally-challenged periphery, such as Spain and Italy. On January 1, the extra yield Madrid had to pay to sell its paper compared with Berlin was 222 basis points. It is now around the 120bp mark. Rome had to stump up 219bp more, but that has dwindled to 135bp. This tightening has played out over a few years since the height of the Greece-inspired eurozone debt crisis. In 2012, both Italy and Spain had to pay greater than 500 basis points more than Germany. Tighter spreads reflect two things. First, a shift from worrying about risk premium on peripherals and greater emphasis on waning growth alongside disinflation. Second, investors are front running the expected launch of full-blown US-style quantitative easing by the European Central Bank. In other words the buying of sovereign debt. But this week spreads have nudged up from the year’s lows as the prospect of a possible “Grexit” exercises investors. And traders must try and figure out how much of the mooted ECB QE is already baked into yields. Should president Mario Draghi disappoint then that should cause spreads to widen again. Pay particular attention to Italy, close to deflation and with debt to GDP among the highest in the bloc. [email protected]

Spanish-German 10-year bond spread Basis points 600 300 0 2010

12

14

Source: Thomson Reuters Datastream

US retail data help risk aversion fade despite oil at five-year lows Bond yields rise as dollar gains ground against yen and puts pressure on Treasuries while investors consider Fed’s next move FT REPORTERS

Wall Street shrugged off soft sessions in Asia and Europe, as signs emerged that the global market’s latest bout of risk aversion may be fading even as the oil price flirted with fresh five-year lows. Sentiment was supported by evidence that the US consumer is still in good spirits. US retail sales rose by a bigger than expected 0.7 per cent last month, lifting the S&P 500 0.4 per cent to 2,034.99 points by the end of the session in New York, recovering from a 1.6 per cent slide on Wednesday driven by anxiety over oil prices. The upbeat data also helped the dollar gain ground against the “haven” yen and put pressure on policy-sensitive twoyear Treasury notes, as investors contemplated more imminent monetary policy tightening from the Federal Reserve. “Strong retail sales data helped place further flattening pressure on the Treasury curve as five-year notes and 30-year notes tested new lows,” wrote Gennadiy Goldberg, an analyst at TD Securities, in a note. “This suggests investors continue to pull forward the anticipated timing for rate hikes as the US economy continues to lead growth momentum amid a weaker global recovery.” Causes of Wall Street’s recent sell-off, and the accompanying global wobble, continued to be debated among traders. The main suspect is the slumping oil price. Brent crude fell below $65 a barrel on Wednesday for the first time in half a decade after Opec cut forecasts of

Wall Street Optimism over Eli Lilly pipeline drives 5% rise Eric Platt Eli Lilly shares were buoyed by a brokerage upgrade yesterday as Morgan Stanley analysts gained confidence over the drugmaker’s product pipeline. The bank raised its rating from “underweight” to “overweight” on the view that several of its treatments could prove to be blockbusters. “Recent external data readouts in major disease states — atherosclerosis

Markets’ macro speedbump: FT.com/video John Authers asks Jeffrey Kleintop at Charles Schwab whether US markets can keep rallying if the rest of the world slumps demand to the lowest in 12 years. Brent fell to $63.61 a barrel yesterday, while WTI closed below the $60 a barrel mark for the first time since July 2009. Many investors are wary that the slide in energy costs is not just reflecting rising production in the US but is evidence of waning demand, a signal that the global economy is in worse shape than some analysts think. There are also concerns that some oil exporting countries that need higher oil prices to manage their economies are being forced to sell assets in their investment portfolios to raise cash. And they are dumping the growth-focused ones first; in other words, reducing exposure to equities rather than sovereign debt.

on-market portfolio, the pipeline appears to hold potential significant value, the annual cash flows are solid, the management team is very talented and appropriately aggressive, and the balance sheet is net cash positive. Few entities look like this.” Oil and miners dragged on the FTSE 100 lower for a fourth straight day, down 0.6 per cent or 38.34 points at 6,461.70. Glencore lost 3.7 per cent to 294.9p, its lowest since mid-2013, in response to news that the miner had raised its 2015 capital expenditure guidance by $1.3bn during an investor day on Wednesday. Legal & General was up 2.2 per cent to 246.6p after Nomura turned positive in a 2015 insurance sector preview. “We believe the market under-appreciates the strong positive outlook in the group’s key differentiated area of

and Alzheimer’s — make us more confident that Lilly management is making the right pipeline investments,” David Risinger, at Morgan Stanley, said. The bank, which also increased its price target to $85 from $60, said peak sales from the closely watched Alzheimer’s treatment could hit $10bn. The drug’s phase three trial concludes in December 2016. Shares advanced as much as 5 per cent, but ended the day only 0.8 per cent higher at $71.61. Urban Outfitters led the S&P 500 after the company said same-store sales in its current quarter were “low singledigit positive”. Wall Street had projected a 2.5 per cent rise in comparable store sales in mid-November. “While some of the improvement at Urban Outfitters has been promotionally driven, ecommerce has been strong at each brand, though stores have been slower to improve,” Paul Lejuez, at Wells Fargo, said. The company climbed 8 per cent to $32.31, lifting its valuation to $4.3bn. Shares in Staples, the US office supplies chain, surged 9 per cent to

$16.11 after a well-known activist investor disclosed a stake in the retailer. Starboard Value, an activist investor whose targets include Yahoo, has taken a 5.1 per cent stake in the business, and raised its holding in rival supplier Office Depot to 10 per cent. Office Depot shares advanced 12 per cent to $7.55. Lending Club, the world’s largest peer-to-peer lender, climbed 56 per cent to $23.43 in the company’s debut in New York, valuing it at $8.9bn. Lending Club sold 58m shares at $15 apiece on Wednesday evening in an IPO that was many times oversubscribed. Morgan Stanley and Goldman Sachs, which led the underwriting, increased the size of the listing at the last minute. Also on the IPO front, Momo, the Alibaba-backed messaging application, climbed nearly 6 per cent to $14.25 in early trading. US equity markets ended three days of losses, as data showed stronger than expected retail sales. The S&P 500 rose 0.5 per cent to 2,035.33 while the Dow Jones advanced 17,596.34. The Nasdaq increased 0.5 per cent to 4,708.16.

Dec 2013

380 360 340 320 300 Dec

2014

Source: Thomson Reuters Datastream 'D\ V ,QGLFHV

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FKDQJH

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Two months after a bid from AbbVie collapsed, investors have been feeling more comfortable with the idea of Shire staying independent. Shire rose 3.1 per cent to £45.65 yesterday in reaction to the drugmaker’s R&D meeting in New York a day before. The stock has rallied 23 per cent from its low point in October, when AbbVie abandoned a $54bn bid and paid a $1.64bn termination fee. At the meeting, Shire stuck with guidance of doubling sales to $10bn by 2020 through pipeline development rather than with one transformational acquisition. Analysts have estimated that Shire has the capacity to raise up to $13bn in debt for takeovers. “These assets remain exceedingly attractive,” Cowan & Co told clients. “There is good duration in the current

Mark Lennihan/AP

expertise in bulk annuities, and good momentum in other business segments,” it said. A short squeeze lifted Quindell 9.9 per cent to 36p, which dealers said may have been triggered by this week’s sale of about 24m shares by founder Rob Terry. The cost of borrowing Quindell stock hit its maximum level, Markit data showed, while filings revealed Roble, a vehicle of US hedge fund Tiger Global, had reduced its short position to 2.72 per cent from 3.92 per cent. IGas, the UK shale gas developer, lost 14.8 per cent to 39p after Canaccord Genuity raised concerns over its debt levels. The broker, which added a “speculative” tag to its previous “buy” recommendation, forecast that at current oil prices the liquidity and leverage covenants on iGas’s $165m of bonds “could be challenged”. Canaccord’s concerns overshadowed rumours in the market that IGas is a potential takeover target for a Swiss chemicals company. iGas stock has slumped 75 per cent this year after its chief executive Andrew Austin raised £7m in January with a share transfer to Equities First Holdings, the same specialist lender used disastrously by Quindell’s directors, then reinvested only £400,000 to date on the stock. IOMart bounced 6.3 per cent to 172.5p amid bid speculation and on an upgrade from N+1 Singer. It argued the cloud computing specialist had been oversold earlier in the week on news of a slowdown at its hosting division.

Share price (pence)

Bryce Elder

S&P 500 index









\U*LOW




\U*LOW$OO6KDUH5DWLR





)76()XWXUHV

This highlights another possible reason for the stock market slide: the paring of previously winning trades through 2014. As the end of the year approaches, the S&P 500 is still up 9.6 per cent, while those investors who have bet on a strong dollar and weak yen have made hay. Some profit-taking was inevitable and is occurring in seasonally thinner conditions, exacerbating volatility. The CBOE Vix index, a gauge of expected US equity volatility, ended last week at 11.8 but closed on Wednesday at 18.5 — a jump of 57 per cent. Yesterday the Vix edged higher to 18.69. US bond yields, having fallen all week on risk aversion buying, rose yesterday

Trading Directory

following the retail sales figures. The US 10-year yield rose 1 basis point to 2.17 per cent, while the two-year yield climbed 4bp to 0.61 per cent. The dollar index, which on Monday hit a five-year high of 89.55, was up 0.4 per cent on the day at 88.67. The yen this week touched a seven-year low versus the dollar of Y121.84, but yesterday stabilised temporarily at Y119.39. 10-year Bunds were at a record low of 0.67 per cent as French and German inflation hovered at multiyear lows. The demand for high-quality European debt also reflected a revival of eurozone fears after Greek stocks fell and bond yields spiked on forecasts that an anti-austerity party could win the next election. Yesterday, the Athens stock market fell another 7 per cent and benchmark bond yields rose 44bp to 8.9 per cent. Weakness in miners weighed on European stocks, but the FTSE Eurofirst 300 pared losses to close the session 0.1 per cent higher. Finally, a number of analysts speculated that Tuesday’s 5.4 per cent slump in China’s stock market, on talk of tighter credit conditions, provided an extra frisson to the global anxiety. But things in Shanghai seem to have calmed down: the composite index slipped just 0.5 per cent yesterday. Elsewhere in Asia, Hong Kong’s Hang Seng index lost 0.9 per cent, led by energy stocks, as authorities began to dismantle barricades in an effort to end more than two months of civil disobedience in the Chinese territory. Tokyo’s Nikkei 225 fell as much as 2.1 per cent in early trading but the loss was pared to 0.9 per cent as the yen weakened. The benchmark average briefly rose above 18,000 this week — a sevenand-a-half-year high — but has since fallen 4.1 per cent. Reporting by Jamie Chisholm in London, Anna Nicolaou in New York and Patrick McGee in Hong Kong

0.45%

Change on day

2080 2060 2040 Nov

Glencore

London Investors warm to independent Shire as oil and miners drag

Markets update

2014

2020 Dec

US equities Stocks advanced on Wall Street, snapping a three-day losing streak, after stronger retail sales data renewed optimism about US growth prospects

FTSE 100 index 0.59%

Change on day

Nov

2014

6800 6700 6600 6500 6400 Dec

UK equities The FTSE 100, dipping to a six-week low, was led by mining companies. The mining index fell 2 per cent, dragged down by weak commodity prices

Eurofirst 300 index Change on day

0.02%

1400 1380

Nov

2014

1360 1340 Dec

European equities Stocks were weighed by political uncertainty in Greece. Greek shares fell 7 per cent, while the Eurofirst 300 index ended the session little changed

Nikkei 225 index (’000) Change on day

0.89%

18.0 17.5 17.0

Nov

2014

16.5 Dec

Asian equities Japanese stocks fell and the yen capped a three-day rally yesterday, driving down energy shares and exporters

34

★★★

Friday 12 December 2014

INSIGHT

Analysis. Capital markets

Ralph Atkins

Cheap energy bonds fail to tempt rally

Watch out for ‘ouch’ potential of global volatility in 2015

G

reece’s stock market crashes. Shares plunge in Shanghai. Tumbling oil prices hit junk bond markets and emerging market currencies. The trend seems clear: this year is ending in a burst of volatility. In fact, 2014 will go down in financial history as a year of exceptional calm. For all the worries about economic fragilities and geopolitical risks, measures of market choppiness have, mostly, stayed low. The closest watched is the Vix index of expected US share price volatility, known as the “Wall Street” fear gauge but really an indicator of global investor nervousness. The Vix has averaged the lowest since 2006, a year of halcyon calm. What we have seen have been volatility spikes — shortlived periods of turbulence, or big price swings, which quickly calm. One such period was a week in October which saw a “flash crash”, or sudden drop, in US Treasury yields. Then reassuring comments by central bankers restored calm. This week looks like another such spike — although the Vix has still to reach October’s levels. For investors preparing for 2015, what matters is whether the hedgehog-like pattern remains mostly harmless — in other words, that average levels of volatility do not rise excessively. Predicting volatility patterns is as perilous as forecasting any market trend. But for the benefit of nervous investors, here are some reasons why this year’s “low with spikes” experience could continue — and some why it might develop into something more worrisome. A good reason for expecting relative stability, and seeing spikes simply as buying opportunities, is the stillEuropean mesmerising influence of central banks. That may present political risk is long-term problems: “Marlikely to be a kets’ buoyancy hinges on central banks’ every word and main theme in deed,” observed Claudio the coming year Borio, head of the monetary and economic department at the Bank for International Settlements this week. But lately, central bankers have been successful in avoiding volatility. The US Federal Reserve ended its “quantitative easing” programme without upsets. Policy loosening by the European Central Bank and Bank of Japan has extended global rallies in equities and bonds. A less benign reason for believing calm will continue is that low economic growth and low inflation are usually associated with subaverage market volatility. Changes in financial regulation, however, may have increased market wobbliness. October’s “flash crash” showed that even in the huge US Treasuries market, sudden liquidity constraints could lead to wild price fluctuations. “In short, we think the world we live in is a world of low base-level volatility, but with increasingly frequent and sudden jumps,” UBS analysts concluded in a recent note. It is easy to see how those wobbles could build into generally higher volatility. While tensions over Ukraine or in the Middle East have largely been brushed off, European political risk is likely to be a main 2015 theme. Greece’s woes are again posing a threat to the eurozone’s integrity. Meanwhile, tumbling oil prices have shifted economic power away from oil exporters, with implications for global capital flows, and the BIS warned this week a stronger dollar was piling pressure on emerging market economies thathavereliedonUScurrencydenominateddebt.Inturn, the dollar’s appreciation results from growing divergence in central banks’ policies — also a source of potential volatility. For all their communication skills this year, differences have become starker as oil has fallen. Mario Draghi, ECB president, is focused on downward risks to alreadydangerously low inflation. In the US and UK, central banks want to normalise policies. William Dudley, Federal Reserve Bank of New York president, stresses the likely boosttoconsumerspendingfromlowerenergycosts. “That is an incredibly important difference in the mindsetsofcentralbanks,”saysScottThiel,fixed-incomestrategist at BlackRock. Then there are the perennial risks of a China slowdown and global currency wars. As such, 2014’s lowvolatilitymayhavemaskedunderlyingvulnerabilities. Of course, a bit more market volatility might be healthy. It would keep traders on edge and act as a check against excessive risk-taking — get too close to a hedgehog’s prickles and you go “ouch”. But that assumes volatility remains within limits — and does not become an animal that bites. [email protected]

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

economies, headed by Brazil, Russia, India and China. ft.com/beyondbrics Y Podcast The Hard Currency podcast takes a look at what is driving the global currency market. ft.com/podcasts Y Video View from the Markets features video interviews with leading market analysts. ft.com/vftm

Investors in junk-rated debt err on side of caution amid retreat in crude prices

Maturity time bomb looms in 2017 Bond maturity schedule for energy bonds

Top 10 US high-yield energy issuers*

$bn 50

VIVIANNE RODRIGUES — NEW YORK

Junk-rated energy bonds are looking cheap following a sell-off that has mirrored recent losses for oil prices, but bargain hunters are thin on the ground as dangers for the sector offset the discount. Low-rated energy bonds have not been this cheap in years, with some analysts’ estimates showing 18 per cent of energy sector issues in the Bank of America Merrill Lynch index are distressed, with prices well below face value. Junk bonds have moved in tandem with oil markets, where crude prices have dropped about 40 per cent since midsummer to trade below $65 a barrel on Wednesday. The plunge in prices has also weighed on major energy stocks across the globe. The S&P 600 energy sector has fallen 50 per cent from its peak in June. But while some investors see the drop in bond prices as an opportunity to buy back some of the securities at a hefty discount, others say it is too soon to add exposure to the sector given the volatility in oil prices. “This is a stunning drop. Who would have imagined just a couple of months ago that oil would be trading below $65 a barrel?” asks Sabur Moini, a high-yield portfolio manager at Payden & Rygel. “This sell-off is really challenging. On one side, we are all seeing some bonds, sold by some high-quality energy companies, suddenly become really cheap. But at the same time, it’s hard to justify buying energy debt right now as markto-market losses in portfolios are still mounting.” As of the start of December, junkrated energy debt has recorded a total return of minus 5.3 per cent, while the broad BofAML Index has gained about

40

30

Ian Taylor, chief executive of Vitol, the world’s largest independent oil trading house, said yesterday that official estimates on consumption had been overshooting actual demand and suggested that the cheapest oil since 2009 could linger. “Over the last few months it’s become increasingly clear that demand predictions have been and continue to be consistently on the high side,” he told the Platts Global Energy Outlook Forum in New York. Vitol delivers daily more than 5m barrels of oil, or about 6 per cent of the global physical market. This gives it a privileged vantage point on trends in supply, demand and inventory. Mr Taylor’s comments echoed others in the physical oil market. Alex Beard, head of oil at the commodities trading house Glencore, said at an investor day on Wednesday that “We are in for a period of low prices and capital discipline across the market”, although he warned that the lower prices went the sharper the eventual rebound would be. Nymex January West Texas Intermediate, the US oil benchmark, surrendered early gains to end down 99 cents at $59.95 a barrel yesterday. Brent, the international crude marker, also headed south, falling 56 cents to $63.68 a barrel. Both

10

15

US marketed high-yield bonds 20

10

0 2014

15

16

17

18

19

Sources: Fitch US high-yield default index; Bloomberg; Dealogic

US oil below $60 for first time since 2009 US crude closed below $60 a barrel for the first time in five and-a-half years, sliding amid new concerns that consumption will lag far behind surging output.

5

* In the last decade

Commodities

GREGORY MEYER — NEW YORK NEIL HUME AND ANJLI RAVAL — LONDON

Deal value ($bn) 0 Chesapeake Energy Petroleos de Venezuela Plains Exploration & Prod Sabine Pass Liquefaction LINN Energy California Resources Denbury Resources Continental Resources SandRidge Energy Pacific Rubiales Energy

contracts settled at the lowest since mid-July 2009. The declines came on top of falls of more than $2 on Wednesday after the Opec producers’ cartel said that demand for the cartel’s crude in 2015 would be the lowest in a decade and below current levels. Official forecasts from bodies, including Opec and the US Energy Department, contend that world oil consumption will rise by 1m barrels per day next year, Mr Taylor said. But he said that two factors — the weakening of large economies in Asia and Europe and steady improvement in energy efficiency — were challenging these assumptions. Demand will grow by only about 600,000 b/d this year, he said. Mr Taylor said he himself had both sold crude when it was $5 per barrel and bought it just before the 2008 bubble burst at $140, so “personally, $60 a barrel seems extremely reasonable.” He added: “I suggest that we might have to live here for a much longer period than perhaps at the moment we’re all expecting.” Concerns about anaemic demand growth have compounded the effects of Opec’s decision not to tinker with output targets at its latest meeting. The cartel is challenged with booming production from US shale formations. On Wednesday, Saudi Arabia’s oil minister said that the country had no intention of changing its stance and cutting production. “Why should I cut production?” Ali Al-Naimi said. “This is a market and I’m selling in a market. Why should I cut?”

20

21

22

23

24

2014=one month, 2024=years later than 2023

3.1 per cent. The drop in prices has pushed average yields on junk-rated energy bonds close to 9 per cent, compared with overall yields of 6.8 per cent for high-yield debt. “Those yields are tempting, especially when you know that some companies are well hedged for 2015,” says Mr Moini. “But with so many people nervous about these bonds, it’s probably best to err on the side of caution.” The pressure on junk-rated energy bonds has raised fears of an increase in default rates and a restructuring of issues — which have remained subdued since the financial crisis — should oil prices slide further. That is a problem for credit investors because energy companies have issued a large amount of debt in recent years, with the energy sector now accounting for about 16 per cent of the $1.3tn junk

Deal value ($bn) 400

Oil & gas sector (as a % of total) 20

300

15

200

10

100

5

0 2000

0 05

10

14

2014 is year-to-date

bond market, up from a share of 4 per cent a decade ago. Nearly $77bn of energy debt is rated B minus or lower, deep into junk territory, according to Fitch Ratings. “A further drop in oil will be painful for some of these companies and we may see some of them fail or be acquired,” says Michael Collins, a senior investment officer at Prudential. “The problem is that everybody has some degree of exposure to the sector and even if you cut your holdings, chances are you are still holding energy bonds.” The gloomy sentiment has weighed on the appetite for debt issuance from energy companies and resulted in borrowers delaying new rounds of financing. Bankers are saying that few energy deals are likely to get done as long as oil continues its downward slide. “New issue in energy right now is not

what people are looking for,” says Peter Toal, head of leveraged finance syndicate at Barclays. Still, energy bond issuers may have breathing room as the bulk of high-yield energy debt outstanding does not reach maturity until 2017, when about $13.7bn worth of bonds are due, according to Fitch. In addition, the default environment for the US high-yield market is expected to remain benign in 2015, even when accounting for potential troubles in the energy group. The corporate default rate for 2015 is forecast at 1.5-2 per cent — below the 4.3 per cent historic average, the rating agency says. “For now, we are all licking our wounds and sniffing out opportunities,” says Mr Collins. “But is this the right time to get back in or is it too early?” Additional reporting by Tracy Alloway in New York

WORLD BUSINESS NEWSPAPER

FRIDAY 12 DECEMBER 2014

EUROPE

Liberate London

Person of the Year

Seasonal appeal

Why the capital should leave Little England — PHILIP STEPHENS, PAGE 11

Apple’s Tim Cook steps out from Jobs’ shadow — BIG READ, PAGE 9

FT teams up with International Rescue Committee — PAGE 6

EU stagnation fears resurface as cheap loans sale falls short

Start of the peer-to-peer show as Lending Club leaps 65% on debut

Hopes that the European Central Bank will resort to a full-scale programme of government bond purchases rose yesterday after a poor take-up of cheap ECB cash sparked fresh doubts about policy makers’ efforts to stave off stagnation. The bank injected €129.8bn into the eurozone’s banking system through another offer of four-year loans, but the figure missed all but the most modest of market expectations. The ECB plans to swell its balance sheet by €1tn to a level last seen in 2012, as part of efforts to lift inflation and boost growth in the eurozone. Prices rose by 0.3 per cent in the year to November, raising fears that the region could be heading for a prolonged period of Japan-style stagnation. Those concerns were underscored yesterday when France posted a 0.2 per cent fall in retail prices between October and November, a bigger decline than economists had forecast. But the ECB is split over whether to embark on full-blown quantitative easing as a way to achieve its goals. Such a policy is strongly opposed by Bundesbank president Jens Weidmann and other hawkish members of the bank’s governing council. They believe that the central bank’s existing measures, which include buying covered bonds and asset-backed securities, and auctioning cheap cash to eurozone lenders, will be enough to raise inflation to the ECB’s target of below, but close to, 2 per cent. Analysts

think that the disappointing take-up of the auction has weakened their hand. Nick Matthews, economist at Nomura, said: “The result reduces the strength of the ECB hawks’ argument that existing policy measures are enough.” Meanwhile, fresh evidence emerged of the diverging fortunes of the US and eurozone economies. US retail sales rose 0.7 per cent in November, the most in eight months, in a sign that faster jobs growth and the rapid drop in petrol prices were boosting consumption. The strong numbers will further increase the US Federal Reserve’s confidence in the growth outlook for 2015 and make an interest rate rise by the summer more likely. The probability of full-blown QE in the eurozone increased this month when the ECB changed its language to say it “intended” rather than “expected” to ramp up its balance sheet to €3tn. Yesterday’s auction suggested it would struggle to do so without further action, especially as banks are expected to have to repay hundreds of billions of euros in outstanding ECB loans in the coming months. “The bottom line is that this should help shift the policy debate to policies fixed on stimulating demand,” said Huw van Steenis of Morgan Stanley. “We think the measures the ECB has announced so far will fall short . . . by €400bn and €600bn.” Additional reporting by Robin Harding in Washington Lex page 14 Short View page 15

i Banks probed over forex algorithms New York’s bank regulator is investigating whether Barclays and Deutsche Bank used algorithms to manipulate foreign exchange rates.— PAGE 15

i Europe aims for safer, sleeker trucks EU governments have agreed rules that could put an end to the brick-shaped lorries that campaign groups say are inefficient and dangerous to other road users.— PAGE 15; INDUSTRY WINS DELAY, PAGE 18

i Carney sweeps aside secrecy at BoE Mark Carney, Bank of England governor, swept aside some of the secrecy around the bank’s deliberations, promising to publish minutes of interest rate decisions when they are announced.— PAGE 4

i Russia and India renew frayed ties Russia and India agreed to renew their frayed relationships in energy, defence and trade, with the construction of at least 10 more Russian nuclear power reactors in India.— PAGE 2

i South Africa urged to push growth South Africa urgently needs to tackle structural problems that are stalling growth, the International Monetary Fund has warned.— PAGE 3

i Cheap energy bonds fail to tempt Junk-rated energy bonds are looking cheap after a sell-off that has mirrored losses for oil prices, but bargain-hunters are thin on the ground.— PAGE 28

i Ecclestone vows to maintain grip on F1 Renaud Laplanche, left, founder and CEO of Lending Club, and CFO Carrie Dolan ring the starting bell at the New York Stock Exchange yesterday — Richard Drew/AP TRACY ALLOWAY AND ERIC PLATT — NEW YORK

Lending Club, the San Francisco start-up that set out to bypass traditional banking, captured the attention of Wall Street yesterday as it listed on the New York Stock Exchange and promptly shot to a valuation of $8.9bn. Shares in the world’s biggest peer-to-peer lender began trading at $24.75, delivering an instant 65 per cent gain to investors who bought in at the listing price and valuing Lending Club above S&P 500 constit-

uents such as Nasdaq, Pitney Bowes and Hasbro. “It is a good day for Lending Club,” said Lawrence Summers, the former US Treasury secretary who is on the company’s board and whose 1m shares are now valued at nearly $25m. Other prominent investors include Mary Meeker, the famed technology analyst; John Mack, the former Morgan Stanley chief executive; and Hans Morris, the long-time Citigroup banker and former president of Visa who also sits on Lending Club’s board. The listing is widely viewed

as a coming of age moment for the entire peer-to-peer, or marketplace lending, industry. Two other alternative lenders, OnDeck and SoFi, are waiting in the wings for their own IPOs. Lending Club sold 58m shares at $15 apiece on Wednesday evening, valuing it at $5.4bn in an initial public offering that was many times subscribed. In its first 10 minutes of trading, nearly 17m shares changed hands, or about 30 per cent of the free float. Lex page 14

Commerzbank close to $1bn deal with US over alleged sanctions violations KARA SCANNELL — NEW YORK GINA CHON — WASHINGTON

Juncker faces the music over sweetheart tax deals Analysis i PAGE 3

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

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Commerzbank is in talks to pay US authorities in excess of $1bn in fines to resolve allegations that the German bank broke anti-money laundering and sanctions laws — at least $400m more than previously thought. The settlement is in the final stages of negotiations, people familiar with the matter said, and could be announced by the end of the year. Commerzbank had been in talks to pay more than $600m in penalties to state and federal authorities over the investigation into its dealings with Iran and other countries on the prohibited list, but a parallel probe by the US attorney’s office in Manhattan could nearly double that sum. As part of the deal, the German bank

is expected to agree to a deferred prosecution agreement, in which criminal charges are dropped after a set period if the bank does not break the rules again. The resolution, if reached, would be the latest in a string of non-US banks taken to task for violating US sanctions laws. BNP Paribas pleaded guilty and paid a record $8.9bn penalty to the US authorities this year. The US Department of Justice, New York’s Department of Financial Services and the New York county district attorney are investigating Commerzbank for business dealings with Iran, Sudan and other countries on the US sanctions list. The US attorney’s office in Manhattan has been looking into poor risk controls over the bank’s anti-money laundering compliance programme, these people said. Commerzbank and officials

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for the government agencies declined to comment. Commerzbank has disclosed the investigation into whether the bank breached US embargoes, “particularly with respect to Iran, Sudan, North Korea, Myanmar and Cuba”. It warned that it “cannot rule out” paying a “considerable sum of money in order to settle the case”. While the bank is expected to resolve both investigations in the deal now being negotiated, people familiar with the probe warned that the terms of the settlement had not been finalised and details could still change. The DFS had been seeking clawbacks of pay or disciplinary actions against bank employees with links to the alleged misconduct. It is not clear whether any related actions will take place as part of the settlement.

World Markets

Subscribe In print and online www.ft.com/subscribetoday email: [email protected] Tel: +44 20 7775 6000 Fax: +44 20 7873 3428

i Google shuts news service in Spain Google is shutting down its news service in Spain in response to an increasingly hostile legal and political environment in Europe.— PAGE 15

ECB policy makers divided over bringing in full-on quantitative easing CLAIRE JONES — FRANKFURT

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Bernie Ecclestone is defying plans to clip his wings as Formula One chief executive, saying he will not give up power.— PAGE 21

Datawatch Cost of US petrol Minutes of work* required to buy a gallon of petrol

* US manufacturing workers Source: Lombard Street Research

The average US manufacturing worker has to work 5.8 min to earn enough to buy a gallon of petrol. Under Bill Clinton it was 4.1 min; under George W. Bush, 5.5 min; and Barack Obama, until last year, 7 min.

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FINANCIAL TIMES

Friday 12 December 2014

INTERNATIONAL GLOBAL INSIGHT

Nuclear deal

Russia and India renew strained ties Putin turns focus from west to stronger links with emerging markets VICTOR MALLET — NEW DELHI

Russia and India agreed yesterday to renew their frayed relationships in energy, defence and trade, with leaders Vladimir Putin and Narendra Modi promising construction of at least 10 more Russian nuclear power reactors in India over the next two decades. “Today, we have outlined an ambitious vision for nuclear energy,” Mr Modi announced at a joint news conference with Mr Putin in New Delhi. At a time of increasing economic isolation of Russia by the west, Mr Putin has been keen to strengthen relationships with emerging market trading

partners. India, for its part, has neither criticised nor supported Russia’s annexation of Crimea and its involvement in eastern Ukraine. The recently commissioned 1,000megawatt first unit of the Kudankulam Nuclear Power Plant in south India, built by Russia, has already increased Indian nuclear electricity output by a fifth. Another reactor is due to begin operating next year, with two more to follow. In a tacit acknowledgment of the cost overruns and long delays hampering previous projects, the agreement commits India to finding a site in addition to Kudankulam for building more reactors. The agreement says both sides will seek “to minimise the total cost and time of construction of nuclear power units”. During the cold war, Russia was con-

sidered a loyal friend of India and became its main arms supplier, but in recent years New Delhi has sought to broaden its range of alliances and moved closer to the US and its Asia-Pacific allies Japan and Australia. Mr Modi struck up an apparently warm relationship with President Barack Obama on his visit to Washington this year and will host him at India’s Republic Day ceremonies in January. The US, in turn, is eager to boost trade and defence ties with India, and last year delivered more weapons to India than any other supplier. According to Samir Patil, a national security expert at Indian think-tank Gateway House, delays in Russian arms supplies, defective spare parts and arguments over cost have led to “troubled defence ties” between India and Russia since the cold war ended and have

Vladimir Putin with Narendra Modi in New Delhi yesterday

opened the door to US and Israeli manufacturers. Mr Modi nevertheless said “Russia will remain our most important defence partner” and announced that Russia had offered full manufacture in India of one its helicopter models. Among the 20 documents signed during Mr Putin’s one-day visit to India were several relating to co-operation in oil and gas, including one envisaging a joint study for a Russia-India pipeline and another between Rosneft and Essar for the supply of Russian oil to Indian refineries over the next 10 years. Mr Modi described collaboration in oil and gas as “disappointing”. Mr Putin, in an earlier interview with news agency Press Trust of India, said bilateral trade between the two countries fell by a tenth last year to $10bn. “It is important to reverse this trend,” he said.

Venezuela. Public anger

Socialism’s guardians weary of corruption

Economic reform has stalled, say critics, because it threatens powerful internal interests ANDRES SCHIPANI — CARACAS JOHN PAUL RATHBONE — LONDON

The mural above Ana Caona’s head in the gritty Caracas slum known as 23rd of January is no ordinary depiction of the Last Supper. Instead of disciples, the figures flanking Jesus Christ are rebel figures such as Mao, Lenin and Hugo Chávez, the former president. Yet despite these symbols of revolutionary commitment, Ms Caona is disenchanted with Venezuela’s socialist government as it grapples with falling oil prices and an economy ravaged by inflation, shortages and corruption. “There are internecine fights, micropowers within the revolution, everyone defending their interests,” complains this member of one of Venezuela’s militias, called colectivos, which consider themselves keepers of socialism’s sacred flame and also sometimes act as auxiliary state security forces. Ms Caona illuminates a growing public disaffection with President Nicolás Maduro’s government as oil prices have slid 40 per cent since June. She says her

colectivo has taken to delivering food staples around the neighbourhood so that supplies are not “mishandled by corrupt forces”. Her comment about “corrupt forces” also suggests why Mr Maduro continues to stall on the reforms the Opec country needs to shepherd itself through the oil price collapse and stave off default on its hard currency bonds, the highest-yielding among sovereign borrowers. “A serious economic adjustment needs a sincere economy . . . but for the government’s power groups the possibility of becoming millionaires is just too enormous,” says Mercedes de Freitas, head of the local chapter of Transparency International, which ranks Venezuela near the bottom of its corruption index. Removing a domestic petrol subsidy, as Indonesia has done, would save the government $12bn a year, economists estimate, equivalent to 6 per cent of economic output or a third of the fiscal deficit. But that would counter the interests of government insiders, such as senior military officers who, analysts say, continue to support the government and for whom cheap petrol allegedly fuels a contraband trade worth $4bn a year. “There are tremendous arbitrage opportunities,” says Felipe Pérez Martí, planning minister under Mr Chávez,

A private bank unlike any other.

who died last year. Another mooted reform is to dismantle the fixed exchange rate regime and let the bolivar currency float from 6.3 to the dollar to near the black market rate of over 170. That would translate into local currency gains from Venezuela’s dollar-denominated oil exports and close the fiscal deficit, currently financed by printing money. Yet devaluing could spark “a popular explosion”, says Ms Caona. It would also run foul of government insiders who supposedly enjoy access to subsidised foreign exchange. “Control of the economy has been taken by those defending their personal interests, their interest in capital accumulation,” says Nicmer Evans of Socialist Tide, a leftist group that criticises the government for self-enrichment and abandoning revolutionary values. Meanwhile, the economy worsens. The central bank estimates a minimum oil price of $117 a barrel is needed to supply sufficient hard currency to meet import and debt servicing needs. But the price of Venezuelan oil, which accounts for 96 per cent of export earnings, has plummeted to around $62 a barrel. To tide the country over, Mr Maduro has

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Relief felt in western capitals as Qatar comes in from the cold

Q

atar has paid a heavy price for its controversial pro-Islamist policy over the past year. Dispensing with the pretence of brotherly relations, three of its hawkish neighbours, led by Saudi Arabia, withdrew their ambassadors from Doha in May and put the Qatari emir on notice. Months of heated rhetoric and leaks that went to the point of suggesting an invasion of Qatar followed. And then, in mid-November, Gulf rulers kissed and made up. “Truce Declared”, “New Page Opened”, splashed regional newspapers, with pictures of Sheikh Tamim bin Hamad al-Thani, the emir, planting a kiss on the forehead of the Saudi ruler in Riyadh. Soon after, Sheikh Mohammed bin Zayed, the Abu Dhabi crown prince, who was said to be even more angry with Qatar than his Saudi colleagues, arrived unexpectedly in Doha, where he and the emir walked hand in hand. This week, the reconciliation was consummated with Doha’s hosting of the summit of Gulf Co-operation Council, a meeting of the regional grouping that, just a few weeks ago, looked unlikely to happen. The relief at the end of this particular cold war in the Gulf (a more dangerous one, between Saudi Arabia and Iran, shows no sign of abating) was felt in western capitals, where the squabbling of the oil-rich states seemed increasingly petty in the face of the common threats they faced. The Gulf discord was over Qatar’s support for the Egyptbased Muslim Brotherhood, which was ousted from power last year in a military coup embraced by Saudi Arabia and the United Arab Emirates. Riyadh and Abu Dhabi have been determined to put an end to the spread of One test will be in Islamist politics elsewhere in the Arab world Libya, where the and, in effect, were Qataris and Emiratis demanding that Qatar join them. have been backing Sheikh Tamim, who different sides had just taken the reins from his father and was still consolidating his power, resisted the pressure. After all, rattling neighbours with an independent foreign policy has always been Qatar’s way of raising its profile. The spat did not subside. More pressing crises, meanwhile, confronted Gulf rulers: the rise of the Islamic State of Iraq and the Levant, known as Isis, the oil price fall and the growing influence of Iran in Iraq. “The word from the US was that there was a new enemy and that this [dispute] was not healthy,” says Andrew Hammond, a Qatar expert. “The Saudis realised that it was better to paper over the cracks now, and they impressed it upon the Emiratis.” Qatarofferedsomecompromises.SeveralseniorEgyptian Muslim Brotherhood leaders left Qatar and one of the group’s spiritual leaders, Sheikh Yusuf al-Qaradawi, no longer appears on a weekly show on the Qatari-owned Al Jazeera,althoughhestillspeakstotheprintmediainDoha. Hassan Hassan, a UAE-based analyst familiar with the details of the agreement struck last month, says Qatar has pledged non-intervention in other Gulf states’ affairs — Al Jazeera, for example, is expected to refrain from attacking other Gulf states but not end its sympathetic slant towards the Brotherhood. “Qatar always wanted to buy time and stall and play a waiting game, and the other Gulf states wanted to up the game and tell Qatar, we’re serious, but not get to the point of imposing sanctions,” he says. Across the Gulf, however, scepticism abounds over the depth of reconciliation and how long it will last. One test will be in Libya where the Qataris and Emiratis have been backing different sides in a widening civil war. Tarik Yousef, a Doha-based regional expert, says a compromise might have been reached on Libya as part of the reconciliation. Of greater concern to him is that the rift, particularly between Qatar and the UAE, was this time deep and personal and mobilised the public. “Tensions extended beyond the leadership into the community level, an unprecedented occurrence that will require more than high-level visits to undo,” he says. Such visits, he adds, will not be enough to “reverse the ill will”. [email protected]

Falling oil price fuels jump in retail sales before Fed meeting The falling oil price is already encouraging US consumers to spend as retail sales raced ahead in November.

FINANCIAL TIMES

Gregorio Marrero/AP

ordered a 20 per cut in government spending and sought alternative sources of financing, including fresh loans from China and a securitisation of debts owed by Caribbean allies such as Jamaica. Spreads on Venezuelan debt have blown out to over 2,000 basis points over US Treasuries — comparable to Russian spreads before its 1998 default. Mr Maduro, whose approval rating has fallen to 25 per cent, according to local pollster Datanalisis, has blamed unnamed interest groups and the opposition for problems such as 60 per cent inflation and the world’s second-highest murder rate. Last week, the government indicted Maria Corina Machado, a former congresswoman, for participating in an alleged assassination plot against Mr Maduro. On Wednesday, the US Congress voted to sanction Venezuelan officials for alleged human rights abuses. Yet Mr Maduro’s real problem may be that his ability to manage the country is being compromised by those around him and dwindling support in his traditional power bases. That includes among some of the more unpredictable colectivos, which showed their power in October when almost 260 groups refused government orders to disarm, and forced the interior minister to quit.

Roula Khalaf

US economy

ROBIN HARDING — WASHINGTON

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A boy passes a Last Supper mural in Caracas showing Chávez third from right. President Nicolás Maduro, below, is under pressure

MIDDLE EAST

Store and restaurant sales were up by 0.7 per cent compared with October and 5.1 per cent on a year ago, in a sign that faster jobs growth and the rapid drop in petrol prices are boosting consumption. The bump in retail sales is another sign of strength in the world’s largest economy, with the crucial holiday shopping season under way, and the US Federal Reserve meeting to set monetary policy next week. With the oil price still in freefall, down by almost $20 a barrel since the start of November, it is further evidence that US consumption will be strong enough to offset weakness elsewhere in the global economy. “The US is the world’s second-largest consumer of energy, after China, and the slump in the global oil price is already having a noticeable impact on its economy,” said Joseph Lake at the Economist Intelligence Unit. “It should provide a considerable boost to consumer spending next year,

when we expect it to help drive the fastestrateofeconomicgrowthforadecade.” If the oil price stays at around current levels next year, then consumers will have $100bn extra left in their wallets. Ted Wieseman at Morgan Stanley in New York said it was a “very positive

Central banks Norway and Russia move on interest rates Sliding crude prices have forced the central banks of two oil-producing countries to step in and support their economies. The Norwegian central bank cut interest rates to boost growth just as the Bank of Russia raised rates to halt a surge in inflation. Norges Bank has reduced its rate by 25 basis points to 1.25 per cent, a level reached only once before, in 2009 after the financial crisis. Oystein Olsen, the central bank governor, justified the cut by referring to “the outlook for the Norwegian economy [being] notably weaker than

report, confirming broadly based upside in discretionary spending moving into thekeyholidayshoppingperiod”. Excluding car sales, the pace of growth was a little slower, at 0.5 per cent over the previous month. Sales at petrol stations were down by 1.6 per cent, envisaged earlier” amid the sharp falls in oil prices. The Bank of Russia raised the benchmark interest rate by 1 percentage point to 10.5 per cent. This latest move brings the cumulative rate increase to 5 percentage points since the beginning of the year. The rate rise comes after inflation hit 9.5 per cent at the end of last week. The Russian central bank forecasts inflation will increase further, to 10 per cent in the first quarter of 2015. But the move failed to stop the fall of the rouble, which hit a record low of 55.47 to the dollar immediately after the rate rise. The Russian currency has lost 40 per cent of its value against the dollar since the start of the year. Richard Milne and Kathrin Hille

showing the direct effect of falling oil prices. The numbers are likely to boost further the Fed’s confidence in the growth outlook for 2015 and strengthen its confidence that interest rates will need to rise by the summer. The recovery of US households was also visible in new flow of funds data from the Fed, which showed consumer credit growing at a 6.4 per cent annualised pace in the third quarter. Overall growth in household credit was slower, at 2.7 per cent, reflecting tight lending conditions in the mortgage market. The net worth of US households dipped slightly in the quarter, from $81.49tn to $81.35tn, as a fall in equity values outweighed the increased value of their homes. Household wealth has recovered strongly since the recession, another factor boosting consumption, but it is unevenly distributed with rich households getting the most benefit. The even distribution of gains from falling oil prices, by contrast, is why they have such a strong effect on consumption. Gillian Tett page 11

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Friday 12 December 2014

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INTERNATIONAL

Juncker the tireless broker for low-tax Luxembourg Commission president was strategic mastermind in Grand Duchy journey from clapped-out steelmaker to ecommerce hub ALEX BARKER AND VANESSA HOULDER

Jean-Claude Juncker had a mischievous look. It was shortly before the 2004 election and Luxembourg’s then premier just could not keep the secret that his tiny Grand Duchy was reeling in another big corporate catch. AOL and Amazon were already moving to Luxembourg amid a flurry of interest from US internet companies. Jeannot Krecké, a rival politician, recalls Mr Juncker furtively hinting at more to come. After a pause, Mr Juncker cracked: “I like apples.” In short order Apple’s iTunes division set up its European home in Luxembourg and was then joined by Microsoft, Cisco and eBay, a veritable tech surge. It was hailed as another triumph of economic reinvention for one of Europe’s smallest sovereign enclaves. Yet a decade on, the strategy has put its mastermind under political fire just as Mr Juncker reaches his career zenith as European Commission president. The EU is investigating whether sweetheart tax deals that Luxembourg granted to two foreign companies — Amazon and Fiat — were too sweet. Thousands of pages of leaked Luxembourg tax rulings have revealed how hundreds of others that moved to the Grand Duchy also managed to pay negligible taxes. Even some allies fear Mr Juncker’s role in his nation’s unlikely rise to the top of Europe’s per capita rich list — a 40-year journey from clappedout steel producer to booming financial centre, satellite pioneer and ecommerce hub — could prove his undoing. During the boom, Mr Juncker was never shy to claim credit. “I have personally lobbied for these companies to choose Luxembourg as a European base and I should neither feel ashamed, nor need to justify it,” he told one Revue interviewer in 2004. To Le Quotidien in the same year he boasted: “We attracted AOL, Amazon, Microsoft. Some think that it fell in our laps. There were 200 hours of negotiations with AOL. You must have a taste for hard work and get stuck in.” Those meeting him remember an accommodating, humorous and accessible leader. “We met [Juncker] once or twice,” Robert Comfort, Amazon’s head of tax, recalled in a candid interview with d’Lëtzebuerger Land detailing the 2003 talks that brought the online retailer to Luxembourg . “[Juncker’s] message was: ‘If you encounter a problem that you think you cannot solve, come see me. I’ll try to help you.’” A year before retiring from Amazon in 2012, Mr Comfort was made Luxembourg’s honorary consul to the US state of Washington. He did not respond to Financial Times requests to comment. For his part, Mr Juncker remains defiant and unapologetic. Speaking to the FT last month, he said accusations of impropriety were “disgusting questions”. So far no wrongdoing has been proved. Luxembourg was far from alone in courting multinationals with an appealing tax regime, and it has never been short of envious rivals, including Ireland, the Netherlands, Belgium, Britain, Switzerland and even Delaware in the US. “They are all criminals if we are criminals,” Mr Juncker once claimed. But on some fronts Luxembourg stands out. In 2000 US companies — excluding banks — reported $3.4bn in profits from their Luxembourg-based d operations, according to US commercee department data. Ten years later, thatt

Rulings How sweetheart deals made charms irresistible Luxembourg’s controversial system of “rulings” — letters from the tax authority confirming how companies would be taxed — dates back to the early 1990s, soon after Jean-Claude Juncker became finance minister. It was sparked by efforts from the big accountancy and law firms to devise a low-tax structure using a new type of holding company, known by its French acronym Soparfi, to reap the benefits of international tax treaties. The new structures were stuffed with large amounts of “hybrid” debt — considered debt in Luxembourg but equity elsewhere. Rulings were needed to give companies the confidence that the arrangement was acceptable to tax inspectors. The Grand Duchy was inspired by the Netherlands, renowned as a holding company magnet. As well as rulings, Luxembourg copied a Dutch capital gains tax exemption. That enhanced the Grand Duchy’s charms, including a tax break on interest introduced to capture the Eurobond market in the 1970s. Luxembourg was well placed for the ensuing explosion in foreign tax planning by US multinationals at the close of the millennium. Such tax planning became even easier in 2002 when Mr Juncker, as prime minister, extended corporate tax breaks to partnerships. That opened up new ways for companies to play one country off another and pay negligible tax. The result was a proliferation of sprawling structures, potentially across several business-friendly countries.

Microsoft’s headquarters in Luxembourg. Below, hereditary Grand Duke Guillaume, fifth left, and then economy minister Jeannot Krecké, seventh left, meet eBay tax officials at its California head office in 2006 Emmanuel Dunand/AFP

number had hit $94.1bn. Behind the numbers was Mr Juncker’s obsession with economic diversification. In the 1970s, the Grand Duchy pivoted from steel to finance through shrewd tax breaks and nippy regulatory footwork. Since the 1930s Luxembourg has cannily deployed its rights to radio frequency and later satellites to host Europe’s broadcasters, from RTL to Radio Luxembourg. For Mr Juncker the dangers of overreliance were personal and visceral: as a young minister he forced his steelworker father into early retirement as Luxembourg’s industry crumbled. To him, the internet age posed both threat and opp opportunity. y “I said to myself. . . we

cannot replace one dependence [steel] with another [finance],” he told the FT. “We tried with all means — but not with illegal means — to diversify our economy against the strong opposition of some of our neighbouring countries.” Jean-Paul Zens, Luxembourg’s top tech sector official for almost two decades, says it was a “happy coincidence” that new EU VAT rules emerged by 2003, allowing exemptions for electronic services. It caught the eye of Rick Minor, an AOL executive, who established the template for using Luxembourg as a European ecommerce hub. What followed was “possibly the biggest influx of Americans to Luxembourg since the second world war”, he said. Once the potential became clear, LuxO emb mbourg hit the road. While Mr Juncker meet the likes of Amazon’s Jeff Bezos at hom me, his ministers were busy prospeccting the US west coast, visiting Ap pple, Yahoo, eBay and Microsoft, am mong others. From 2003 to 2006 their traade missions were annual or twice yeaarly, sometimes with royalty in tow. One picture shows a Luxembourg O miinister and the hereditary Grand Duke Gu uillaume at eBay’s head office. Smiling beeside the heir to the throne: eBay’s ch hief finance officer, head of tax, viceprresident for tax, and a relatively lowly diirector for indirect taxation. While many countries deploy royalty to drum m up p trade, they rarely rub shoulders with a company’s tax practice.

“If you are sitting in Silicon Valley or Seattle or Vancouver and not knowing a lot about Luxembourg, it is more difficult to make a decision about Luxembourg,” said Mr Zens, a regular on the US trips. The Grand Duchy had to do more to make an impact than rivals such as Ireland, which had cultural links to the US. Former ministers and ecommerce executives insist tax was just one of many factors. Talks were as much over regulation, logistics — even school places. Over lunch with Mr Krecké, eBay’s Meg Whitman said she ruled out Luxembourg because of some weaknesses in IT infrastructure — prompting an immediate promise of investment.

US companies in Luxembourg Net income ($bn)

Employees

100

15000

80 10000

60 40

5000

20 0

0 1995 2000

05

10

Source: US Department of Commerce

“We are not tax consultants. We are focused on industry,” said Mr Krecké, who as economy minister led some US trade missions. Indeed, Luxembourg’s great strength was its agility. Mr Juncker oversaw concerted efforts to attract tech players — from changing retail laws, to improving internet connections, to near constant refinements to the tax code, which Luxembourg would, on request, readily interpret for multinationals. “As we say in Luxembourg: ‘Schnellboot gegen Tank (the speedboat takes on the tank)’,” Mr Juncker told the FT as he prepared for the tech boom. In regulatory terms, Luxembourg was a small village where the door of officialdom was always open. Facing an external regulatory assault, Luxembourg is shoring up its defences. Advance tax rulings — so vital to multinationals worried about potential liabilities — are being overhauled to make them harder to secure and more legally sound. Mr Juncker is urging the Grand Duchy to begin sharing them with other governments automatically. “The flexibility and case-by-case discussions with the tax administration we have known in the past are now finished,” Olivier Van Ermengem of Linklaters told clients. “Rulings are now granted on the basis of analysis of the law and the facts . . . We will have to get used to the fact that when you apply for a ruling, it may end up on the desk of a tax inspector anywhere in the world.”

Structural flaws

Labour relations

IMF urges South Africa to push for growth

Germany clamps down on niche trade unions

ANDREW ENGLAND — JOHANNESBURG

South Africa urgently needs to tackle structural problems that are stymieing growth, the International Monetary Fund has warned. The comments came as the rand hit sixyear lows against the dollar and as the country endured its worst power cuts since 2008. Speaking as the IMF released a report on Africa’s most developed economy yesterday, Laura Papi, the fund’s mission chief there, said that while external demand and softer commodity prices were contributing to the weak economic performance, domestic structural constraints had “become more binding”. South Africa’s problems include prolonged wage strikes, transport bottlenecks and labour market issues, coupled with the need to improve education and training. “In terms of policy, our main message is that addressing the structural constraints is more urgent than ever to increase growth, create jobs, and also to increase exports and reduce the current account deficit,” Ms Papi said. The IMF has revised downwards its estimate for the country’s growth to

2.25-2.5 per cent, below the 3.5-4 per cent it estimated in the early 2000s. South Africa is one of the most liquid and traded emerging markets, but it is vulnerable to global financial shocks and was lumped with the “fragile five” emerging markets last year. It is exposed to Europe’s woes via manufacturing exports, and to China’s slowdown through commodities prices. Ms Papi said the subdued potential growth meant that the high unemploy-

1.4

% Growth forecast for this year, the lowest since 2009 recession

25

% Unemployment rate, which has long remained around this level

ment blighting South Africa would remain, as would the government’s battle to narrow high fiscal and current account deficits. The IMF forecasts growth of 1.4 per cent this year — which would be the country’s lowest level since a 2009 recession — and 2.1 per cent in 2015, if labour relations improve. The economy was battered this year by an unprecedented five-month strike in the plati-

num sector, a key source of export earnings. The South African government is struggling with unemployment that has remained stubbornly around 25 per cent; a fiscal deficit of 4.1 per cent of gross domestic product; and a current account deficit of 6 per cent of GDP. In October, Nhlanhla Nene, finance minister, pledged to curtail government spending, saying fiscal consolidation could “no longer be postponed”. The government is implementing a multibillion-dollar infrastructure plan in a bid to boost growth and has adopted a 20-year National Development Plan as the core of its economic policy. But the power shortages are set to last into next year and beyond, while businesses, which are suffering from fragile confidence, complain of rising costs, falling productivity and more labour unrest. Ms Papi said the electricity problems were having an increasing impact on growth and exports. State-owned utility Eskom is building two multibillion-dollar coal plants to add supply, but their completion has been delayed by more than two years — 12 months of which the company blames on strikes — and they have run far over budget.

JEEVAN VASAGAR — BERLIN

Angela Merkel’s government has approved draft legislation that curbs the capacity of small but influential unions to bring areas of the German economy to a halt. In a country where economic success has been built on pay restraint and consensual labour relations, the clampdown on union power follows unpopular strikes that crippled the transport network. The draft law approved by Ms Merkel’s cabinet yesterday allows companies to confine wage negotiations to the union with the biggest group of employees. The courts would be able to rule any subsequent strike by a smaller union without bargaining power to be illegal, limiting the potential for industrial action. Ingo Kramer, president of the BDA, the German employers’ association, said: “The law will stabilise collective bargaining. Employers and employees have to be able to work together on a reliable basis.” The consensus between employers and workers cannot be “torpedoed by special interests”, Mr Kramer added.

Unions have played an influential role in Germany for years, with seats on supervisory boards of listed companies and near-universal membership in sectors such as the car industry. But after a court judgment in 2010 unions occupying specialist niches, such as pilots or doctors, were able to negotiate outside industry-wide agreements. The result has been a number of high-profile disputes in which niche Lufthansa pilots have gone on strike nine times this year, costing the airline more than €170m

unions have crippled some businesses. Lufthansa pilots have gone on strike nine times this year in walkouts that cost the airline more than €170m. The union is fighting to protect early retirement and is concerned about a broader erosion of employee privileges as Lufthansa launches a new budget service, Eurowings. The GDL train drivers’ union disrupted celebrations commemorating the fall of the Berlin Wall with a strike

over pay in October this year. Both the GDL and rival union EVG claim to be the train drivers’ main representative. While union representation declined from about quarter of the German workforce in 2000 to just under 18 per cent last year, according to OECD figures, labour unrest has grown. The number of companies in Germany affected by strikes rose from 367 in 2012 to 1,384 last year, the highest figure in two decades, according to the Federal Labour Agency. Nearly 150,000 working days were lost to strikes last year. The bill was drafted by Andrea Nahles, the Social Democrat labour minister in the coalition government, a trade union member. Ms Nahles said the law on collective bargaining was intended to promote cooperation. “Collective agreements are intended to protect all groups of workers alike. It shouldn’t be the case that success in bargaining is proportionate to your power to strike,” she said. The pilots’ union Cockpit described the law as a “violation of the constitution”. Ilja Schulz, the union’s president, said he expected the law would be overturned through an appeal to Germany’s constitutional court.

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INTERNATIONAL Federal law

Transparency

US companies exposed by migration policy

Carney set to discard Bank of England secrecy

Move to regularise illegal workers puts businesses at risk of prosecution BARNEY JOPSON — WASHINGTON

Businesses that employ low-skilled immigrants fear President Barack Obama’s immigration policy will expose them to new legal risks by encouraging employees to confess they are working on false documents. Mr Obama is using his executive powers to shield more than 4m unauthorised immigrants from deportation and offer them work permits, a move that highlights the US’s reliance on a black market labour force that accounts for 5 per cent of all workers. The president’s action marks the biggest change to immigration policy in decades and has thrown up legal uncertainties for employers — and immigrants — as unprecedented numbers of people move from illegal to legal status.

Businesses are worried that if a worker tells them they are applying for the president’s programme — and thereby admits he or she is working illegally — they will immediately be breaking a federal law against “knowingly” employing an unauthorised worker. Mr Obama’s executive action has also sparked fury among Republicans. They are plotting ways to block it in the early months of next year when they take control of both chambers of Congress. The corporate concerns are acute in construction, agriculture, food, cleaning and hospitality where low-skilled Hispanic immigrants make up a large proportion of the workforce, said Tamar Jacoby, president of ImmigrationWorks USA, an alliance of small businesses. “What’s likely to happen in many businesses,” she said, “is the man who’s worked for you for 10 years who you think is called Juan is going to come and say: ‘I have the keys to the back office and the combination to the safe and I’m one of your most trusted employers, but

my name’s not Juan, it’s Jose. That social security number I gave you is fake and I’ve been lying to you.’” US Immigration and Customs Enforcement conducts audits of workplaces and penalises or even prosecutes business owners and managers found to

‘It’s a “don’t ask, don’t tell” policy. We’re just taking the documents on face value’ be deliberately employing illegal workers. ICE says many immigrants rely on criminal organisations to obtain authentic-looking documents. The law requires businesses to verify staff have the right to work in the US, and Ms Jacoby said most employers “hope and believe” that they are. But fake, borrowed or stolen documents can get people through a process that consists of visual checks of photo

IDs and social security numbers. An electronic system called E-Verify exists but its use is not compulsory. Some employers are reluctant to pose searching questions over documents due to fear of being accused of discrimination. David Fitzpatrick of Labor Law Monitoring, who inspects clothing factories for big outsourcers in Los Angeles, said: “To use a common phrase, it’s a ‘don’t ask, don’t tell’ policy. We’re just taking the documents on face value.” The Pew Research Center says the total size of the unauthorised labour force is 8.1m and 69 per cent of the 4mplus people eligible for work permits under the programme already have jobs. The government will begin accepting applications from them next year. Joe Trauger, vice-president of human resources policy at the National Association of Manufacturers, said: “What do you do when an employee says ‘I need to give you my new legitimate tax ID because what I’ve had is a fake?’ That’s a big problem . . . There’s got to be a proc-

ess or some sort of safe harbour for businesses in that instance.” He said the process would cause problems for companies with “honesty policies” that say employees should be disciplined or fired if they have lied. He also noted the executive action could be reversed by a future president, rendering millions of workers illegal again. The biggest group eligible for the president’s plan are parents of US citizens and legal permanent residents, or green card holders. The administration has not yet issued guidance for employers, but sought to reassure them in 2012 when Mr Obama used his powers to stop the deportation of young people brought to the US illegally as children. It said that if businesses gave workers documentation to verify their presence in the US — and in doing so acknowledged they had been working illegally — that would not be shared with ICE for enforcement purposes “unless there is evidence of egregious violations of criminal statutes or widespread abuses”.

Japan. Economic policy

Weak yen divisive for Abe ahead of election PM hails boon to companies but wider impact of fall hits households and small groups KANA INAGAKI — TOKYO

In an unusual leak during a stump speech, Japanese Prime Minister Shinzo Abe recently revealed Apple’s plan to build its first technology centre in the country, touting it as a result of his weaker yen policy. Apple followed with a timely statement saying the facility in Japan would create “dozens of new jobs”. Days ahead of Sunday’s lower house election, Mr Abe’s message could not be simpler. The cheaper yen, the result of his economic policies known as Abenomics, is good for Japan. The evidence is growing, Mr Abe says, that the yen’s fall — to a seven-year low against the dollar to above Y121 — is bringing production back home and creating jobs. Toshiba, for example, plans to invest more than Y300bn ($2.5bn) in Japan, while Canon is looking to raise its domestic production ratio to 50 per cent from 43 per cent last year. Nissan has decided to manufacture engines in Japan instead of moving to the US, preserving almost 600 jobs, according to Mr Abe. “Even foreign companies are now starting to invest in Japan,” he said on Tuesday as he disclosed Apple’s plans. “A big change is happening.” Looking more closely, though, expanded domestic spending is not always linked to more jobs. Canon has for years aimed to repatriate manufacturing by saving labour costs through automation and the use of robots. The company says it has no plans to change employment levels. Toshiba is also increasing investment at the Yokkaichi memory chip plant in central Japan, but semiconductor facilities are largely automated and any employment impact is likely to be minimal. Nissan, meanwhile, says it has no plans to move its engine production to the US with or without the yen’s fall. Despite the absence of powerful opposition parties, the weak yen debate has been divisive for Mr Abe, pitting the big companies enriched by the currency benefits against smaller groups

A woman walks past election posters in Tokyo yesterday. Some voters have been left struggling from the rising prices of commonly used imported goods Thomas Peter/Reuters

and households left struggling from rising prices of imported items ranging from toilet tissues and milk to beef bowls. Mizuho Bank estimates that a Y10 fall against the dollar boosts the operating profit of listed companies by roughly Y1.7tn while it shaves about Y800bn from the operating profits of privately held businesses that mostly do not export their products. Taro Aso, finance minister, poured more fuel on the fire after reportedly telling voters that companies not profiting from the weaker yen were “either very unlucky or have incompetent managers”. “I’m very upset with Mr Aso,” says Koichi Fujii, chief executive of Sanmaruko Foods, which makes frozen potato croquettes and spring rolls in Hokkaido, northern Japan. “We’re try-

ing so hard to cope with the weaker yen, but he doesn’t seem to get it.” According to Mr Fujii, the costs of materials including beef and flour have risen 5-8 per cent over the past year, while electricity prices have increased 30 per cent and transportation costs 10 per cent. Sanmaruko, a 35-year-old company with Y8.8bn in annual revenue and 500 employees, has cut costs and raised product prices to offset those costs. The company is making some profit, but not enough considering an 11 per cent rise in sales from April to November, Mr Fujii adds. The ruling Liberal Democratic party has promised economic packages to support smaller and medium-sized enterprises hurt by the weaker yen. But analysts say government aid should be aimed at making companies more com-

Looking more closely, expanded domestic spending is not always linked to more jobs

petitive overseas. Sanmaruko, for example, only exports 0.4 per cent of its products. The company wants to raise that ratio to 10 per cent, but with factories only located in Japan, Mr Fujii says the transport costs are too expensive. “It’s just a dream for now,” he says. For Mr Abe, analysts say one game changer that could actually spur more investment at home while mitigating the negative currency impact is cheaper oil, with the price of internationally traded crude falling below $65 for the first time in more than five years. “The speed of the decline in oil prices has been faster than the yen’s fall,” says Kentaro Arita, manager at Mizuho Bank in charge of industry research. “If this trend continues, the merits of cheaper oil will be bigger than the negative impact from the weaker yen.” Male bonding page 11

CHRIS GILES — ECONOMICS EDITOR

Mark Carney, governor of the Bank of England, yesterday swept aside much of the secrecy that traditionally surrounds its deliberations, promising to publish voting details and minutes of interest rate decisions at the same time they are announced. The BoE also wants to hold fewer monetary policy meetings each year and, after reviewing its practice of deleting recordings, has decided it will publish transcripts of monetary policy meetings after eight years. The changes are part of reforms to bolster the transparency of the BoE so that parliament and the public are better able to hold it to account for the many powers it has acquired. The BoE’s communications on monetary policy have veered dramatically between hawkish messages, such as at the Mansion House speech in June, and dovish noises, such as in the August inflation report. The simultaneous release of decisions, minutes and votes will end the drip-feeding of sometimes contradictory information to the public and markets. Recognising some of the confusions the BoE has caused this year, Mr Carney said the procedures will “make policy signals as clear as possible”. From August 2015, the BoE’s Monetary Policy Committee will publish the minutes of its meeting and the quarterly Inflation Report at the same time as it announces its decision on interest rates. Mr Carney said the reforms were “the most significant set of changes to how we present and explain our interest rate decisions since the Monetary Policy Committee was formed in 1997 . . . These changes will enhance our transparency and make us more accountable to the British people.” The measures were welcomed by Andrew Tyrie, chairman of parliament’s Treasury committee, who felt Mr Carney went further than expected. “The bank will have an organisational structure more recognisably that of a modern institution, in keeping with its greatly expanded powers and responsibilities. It will also have a body — a board in all but name — unambiguously in charge of managing its business.” The BoE intends to follow the lead of the US Federal Reserve, the European Central Bank and the Bank of Canada — Mr Carney’s last employer — in having just eight meetings a year. Of the monthly MPC meetings at the BoE, Mr Carney said: “I think we meet too often — that is the honest answer.” The BoE proposes to merge the MPC and four meetings of the Financial Policy Committee from 2016, relieving some of the burden of the monthly decision-making process. George Osborne, chancellor, said he would consider amending the law after the general election to permit the changes. He described the proposals as “an important improvement to the policy making process”. The governor said that moving to eight MPC meetings a year would not prevent the BoE acting speedily in an emergency. Just like at present, Mr Carney said that if necessary, “we could meet this afternoon”. The review was conducted by Kevin Warsh, a former Fed governor. Other changes include publishing the minutes of meetings of the BoE court, its governing body, between 1914 and 1987, to align practices with the rest of Whitehall and publishing court minutes between 2007 and 2009, at the request of the Treasury committee, a period in which the BoE has been accused of acting slowly as the financial crisis developed.

Humanitarian crisis

Syrian refugees resigned to long stay in Turkish camps while Ankara counts the rising cost ERIKA SOLOMON — NIZIP DAN DOMBEY — ISTANBUL

Leafy vines and potted flowers line the small plastic trailer where Abdullah Jawish has lived for two years. Planted as a symbol of optimism, they belie his despair that he will ever leave his refugee camp and return home “Back home I was a farmer,” he says, smiling. “I try to give my family just a taste of that, to remember.” When they first arrived, the refugees thought their life outside Syria would be temporary. Now the 5,000 living in rows of identical white containers in “Nizip II”, just outside the Turkish city of Nizip, are braced for a long haul. After more than three years of bloodshed that has killed more than 200,000 people and forced 9m to flee their homes, few refugees believe they can

return soon. Many fear they never will. “I wonder if we will end up like the Palestinians — a people without a homeland, for decades,” says Mona, a young mother of four. She fled her home city of Aleppo almost three years ago. The sense of permanence is not just a worry for the 1.6m refugees in Turkey. Ankara is also growing alarmed by the economic and the social costs of its refugee burden. Funds are drying up. Turkey’s humanitarian spending has increased more than fivefold since the uprising against Syria’s President Bashar al-Assad began. According to the Organisation for Economic Co-operation and Development, Syria now takes up more than 90 per cent of Turkey’s humanitarian assistance funds. While Turkey’s $820bn economy is burdened by the $1.5bn it spends each year on the refugees, it is still able to pro-

vide for the 220,000 refugees in the camps which are full to capacity. A deeper worry for Ankara is the rising frustration of the estimated 1.4m refugees existing outside the camps. “Either you give food and shelter to these people, or in their anger they may be much more liable to be recruited by extremists and criminals,” says Atilla Yesilada at GlobalSource Partners. Outside the camps, refugees scrape together money to rent garages or unfinished buildings. Child labour and prostitution are growing among refugees not legally allowed to work in Turkey. Many have already turned to crime, like the smuggling that has helped jihadi militants to flow into Syria and which authorities are desperate to stop. Turkey says the world is not doing enough to ease a crisis that has already cost it more than $4.5bn.

“How has the world helped us? They have provided us with $200m. Meanwhile, Europe has only 130,000 refugees from Syria at the moment,” says Recep Tayyip Erdogan, Turkey’s president. “Why won’t European nations open up their borders to refugees?”

A young girl plays outside a tent in Nizip refugee camp

This week the EU said it was finalising €70m in further aid, but a nine-day interruption in World Food Programme assistance for Syrian refugees in the region highlighted the scarcity of available funds. Amnesty International says the international community has “abandoned” refugees. But it also says Turkey has not done enough in requesting support. Privately, aid workers say Ankara does not make it easy to provide aid, arguing that the assistance spending is insufficiently transparent and that it is difficult for foreign organisations to register and operate in Turkey. Turkish officials in border towns like Reyhanli, where the population has doubled with the arrival of Syrian refugees, say they are struggling to maintain services and ease tensions between refugees and locals.

Turkey still has to grapple with huge inflows every time a new military campaign erupts near its borders. In the past two months it took in another 200,000 fleeing an offensive by jihadi militants on the border town of Kobani. It is braced for another huge influx should the Syrian government encircle Aleppo. In figures that outstrip other officials’ predictions, Mevlut Cavusoglu, the foreign minister, has even warned of 2m-3m more refugees if the city falls. Meanwhile, container camps like Nizip are turning into tiny asphalt villages — albeit ones with guard towers and metal detectors for those passing through their chain-linked fences. Cracking open her container door, Mona ushers in her children, nieces and nephews for dinner. “Our container stays the same size,” she sighs. “But the number of people in it keeps growing.”

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INTERNATIONAL FT seasonal appeal

Charity steps up assistance to South Sudan’s 2m displaced How you can help

International Rescue Committee has saved tens of thousands of lives KATRINA MANSON — JUBA

Nomi Ayour Malek had travelled to South Sudan’s capital, Juba, to buy clothes as Christmas presents for her children when fighting broke out last year. As the violence spread, she became trapped by the sudden onset of civil war in the world’s newest nation. As a member of the country’s dominant Dinka ethnic group, she did not dare risk travelling back to her home in Jonglei province, north of Juba, where rebels from the Nuer ethnic community repeatedly attacked and took over the state capital, Bor. “I don’t care for these two tribes,” says Ms Malek, who is still in Juba, living in a camp for 2,600 displaced people, set up in the grounds of a school. The shelters consist of tarpaulin stretched over sticks. Women make up the majority of the camp’s inhabitants; they spend their days washing clothes in plastic vats, cooking, selling charcoal or playing cards in the shade of trees. “We are all the children of South Sudan; let them come together and settle their differences as a family,” says Ms Ayour, mindful that South Sudan spent decades fighting for independence from the Khartoum government, which it won only three years ago. “If there’s peace, I’ll go back [home].” The extent and severity of the fighting, however, as well as fear of ethnic killings, have made it unlikely that Ms Ayour will be able to return home anytime soon. She is just one of nearly 2m people, some 17 per cent of South Sudan’s population, who have been displaced by the violence. While the civil war was triggered by a political fallout between President Salva Kiir, a Dinka, and his sacked deputy, Riek Machar, a Nuer, it has created a humanitarian catastrophe on the ground. Protracted peace talks have so far failed to deliver a lasting deal and heavy fighting could resume with the onset of the dry season early next year. The International Rescue Committee, the humanitarian organisation partnering the Financial Times in this year’s seasonal appeal, has been at the forefront of efforts to bring help to those in South Sudan who need it most. It has got supplies through to tens of thousands of

Refugees play cards in the Juba camp where Nomi Ayour Malek, below, now lives with 2,600 others people who sought refuge by wading into swamplands with only water lilies for food; and monitors shelter and medical care for the thousands of vulnerable people in camps such as the one where Ms Ayour lives. “IRC was one of the earliest, fastest and biggest organisations to reach deep-field locations where need was the highest; there is no question they saved tens of thousands of lives,” says Toby Lanzer, UN chief humanitarian co-ordinator in South Sudan. “At Christmas last year I called [IRC president] David Miliband and said: ‘I need you and I need you here now, big and fast’,” recalls Mr Lanzer, who says IRC is one of the top 20 most effective organisations among 200 currently working in the country. Although it has been active in South Sudan for 25 years, IRC tripled in size this year in its effort to respond to the war. The charity now has more than 1,000 local staff and a budget of $28m, up $10m on last year. In the

12 months since the civil war started, the IRChasreached900,000people. “I’m really proud of the fact that we’ve been able to scale up as much as we did,” says Wendy Taeuber, IRC’s country director for South Sudan. She says IRC reached people in difficult, remote areas by canoe, with many of its staff later emerging undernourished and skinny. Famine, she cautions, “is a much more real possibility in the coming months” because people have sold cows, lost their homesandharvestedonlyameagrecrop. IRC protection officers such as Paul, an ethnic Nuer who did not want to give his full name, search out vulnerable people who need extra assistance. He was recruited from a camp for displaced people at one of many UN bases where he, like 100,000 others, sought refuge. “I move house to house to find children who have no company, pregnant women, lactating mothers, old

Katrina Manson

people, the disabled — four of us make about 30 referrals a week,” he says. The ethnic dimension to the war is a constant source of tension. An IRC report published in November says that both government and opposition forces “have committed extraordinary abuses of civilians, often deliberately targeted along ethnic lines, including mass killings, disappearances, torture and gender-based violence such as rape”. Aid workers in South Sudan were the third most attacked in the world this year after Afghanistan and Syria, with 35 killed. In April, two IRC workers were killed at a health clinic in a UN base. “We hope that donors will continue to support the response,” says Ms Taeuber. “As the conflict continues there’s distrust on all sides. We have to serve people in need wherever they are found.” Appeal online For all stories from the FT’s seasonal appeal and to donate ft.com/seasonalappeal

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FT BIG READ

Person of the Year Tim Cook Reuters/Lucy Nicholson

Buybacks, hacks and big sales — a year at Apple January Apple’s shares fall 8 per cent after iPhone sales miss forecasts. March Luca Maestri becomes Apple’s chief financial officer, paving the way for more share buybacks. May Apple buys Beats Electronics for $3bn in its largest ever acquisition

Plenty to smile about

August Photographs of celebrities including Jennifer Lawrence, apparently hacked from their iCloud accounts, are posted on the internet. September Cook unveils Apple Watch and Apple Pay. The European Commission publishes the initial findings of its inquiry into Apple’s Irish tax deal. October A strong start for the iPhone 6 sees Apple beat Wall Street forecasts for the third earnings in a row this year Cook talks publicly about his sexuality for the first time. November Apple’s market capitalisation hits $700bn in nominal terms.

The Apple chief has faced criticism of his stewardship but in 2014 he turned things round and stamped his identity on a business that at one stage was valued this year at $700bn. By Tim Bradshaw and Richard Waters

M

ore than an hour into Apple’s annual shareholder meeting in February, Tim Cook had patiently fielded questions ranging from its plans for the television market to what he thought of Google Glass. But when one audience member tried to push Apple’s chief executive on the profitability of Apple’s various environmental initiatives, such as its solar-powered data centre, Mr Cook snapped. “We do things for other reasons than a profit motive, we do things because they are right and just,” Mr Cook growled. Whether in human rights, renewable energy or accessibility for people with special needs, “I don’t think about the bloody ROI,” Mr Cook said, in the same stern, uncompromising tone that Apple employees hope they never have to hear. “Just to be very straightforward with you, if that’s a hard line for you . . . then you should get out of the stock.” Many investors, it turns out, are siding with Mr Cook. After a tumultuous 2013, the share price has increased by around 50 per cent since that shareholder meeting, at one point taking its market capitalisation above $700bn.

the Year, but Mr Cook’s brave exposition of his values also sets him apart. This was never more powerful than when he talked publicly for the first time about his sexuality. “If hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it’s worth the trade-off with my own privacy,” he wrote in Bloomberg Businessweek in October. It was a rare glimpse into his closely guarded personal life that also put at risk Apple’s brand in less tolerant parts of the world. Mr Cook was driven to take a stand by his experiences growing up in Alabama, where he has talked of seeing discrimination that “literally would make me sick”.

Cook on coming out ‘If hearing that the CEO of Apple is gay can help someone . . . then it’s worth the trade-off with my own privacy’

Changing minds In the three years after the death of Steve Jobs, Mr Cook, 54, has held his nerve through attacks from activist investors and a loss of faith among some that Apple could succeed without its late founder. This year has seen Apple’s chief step out of the shadows of his predecessor and imprint the company with his own set of values and priorities: bringing in fresh blood, changing how it manages its cash pile, opening Apple up to greater collaboration and focusing more on social issues. As the new iPhone continues to smash its own launch records, Mr Cook has unveiled products such as Apple Watch and Apple Pay that take the iPhone maker into the realms of fashion and finance, recapturing a spirit of innovation that many feared had died with Jobs. In the process, Apple’s valuation this year has grown by almost as much as Google’s entire market capitalisation. But the change in Wall Street’s — and Silicon Valley’s — appreciation of Mr Cook is down to more than just the 70m iPhones Apple is expected to sell this quarter or the $42bn in sales generated in the previous. Financial success and dazzling new technology alone might have been enough to earn Apple’s steely chief executive the FT’s vote as the 2014 Person of

Online Listen to Tim Bradshaw discuss the FT’s Person of the Year at ft.com/podcasts

“From one son of the South and sports fanatic to another, my hat’s off to you,” tweeted Bill Clinton, the former US president, in response to the article. His eloquent defence of equality came after a year of faltering progress on gay marriage in the US and as arguments rage about the lack of diversity among the people running the Silicon Valley companies, including Apple, who shape so much of our culture. Mr Cook has added three women to what was previously a white-maledominated executive team and changed Apple’s board charter to commit to seeking out candidates from minorities when appointing directors. “People claim he has a cool exterior but he’s a very passionate guy and he stands up for what he believes in,” says Bob Iger, Walt Disney chief executive and Apple board member since 2011. “That is in both his personal life and at Apple.” As well as diversity, Mr Cook has championed sustainability and supplychain transparency, including a commitment to reducing Apple’s use of conflict minerals. While hyper-efficient under Mr Cook’s management before he became chief executive, Apple’s supply chain has not always been something to boast about, with recurring complaints about working conditions.

But Anne Simpson, senior portfolio manager and director of global governance at the US pension fund Calpers, a prominent Apple shareholder, believes his ethical stance is more than just posturing. “He has a charming disregard for showmanship,” she says. “Tim Cook applies this Apple notion of elegance and excellence to these new arenas.”

Show must go on Mr Cook’s lack of showmanship has not always been seen as an asset. Critics have been eager to point out that he is not so closely involved in new product development as his predecessor, and fails to elicit the same excitement when he takes to the stage to introduce them. But Mr Cook is aware of his shortcomings and has drawn on the worlds of fitness and fashion to assemble a new team of talents, including Angela Ahrendts, formerly of Burberry, and industrial designer Marc Newson. “I thought it would be impossible to replace Steve, and to some extent that’s true,” says Professor Michael Cusumano of MIT’s Sloan School of Management. “But internally the spirit is still alive and the company is organising around a less confrontational culture. We have to give Tim credit for that.” Bringing harmony to Apple’s internal fiefdoms has not been easy. There is still “huge tension” inside Apple, according to one person who has worked with the company for many years. “That tension is something he uses to run the company but it can be dangerous.” When things do go wrong, Mr Cook takes swift and merciless action. In late 2012, after the premature launch of Apple’s flawed Maps app, he dismissed Scott Forstall, who led the creation of iOS and was a close ally of Jobs, and John Browett, the former Dixons chief who had led Apple retail for less than a year. The actions sent a message that Mr Cook will not tolerate underperformance or internal politics. At that time, the chief executive was also under pressure, given Apple’s lack of clear product direction beyond milking the iPhone. Sensing blood, activist investors began to circle the company; first David Einhorn, then Carl Icahn, have lobbied for changes to how Apple is run and manages its finances. Mr Icahn has pushed for Apple to raise huge debt to return up to $150bn to shareholders and urged it to release more products, including a television set. With a growing need for someone to block and tackle Apple’s raiders and (given its tax investigation in Europe) regulators, Mr Cook’s focus on people, strategy and execution — rather than

products — finally started to look like an advantage. “He is very, very good at not allowing that pressure to in any way disrupt what Apple is trying to achieve,” says Mr Iger. “Clearly there were issues that were on his mind but Tim made sure they were never on the minds of the people who do what Apple does best.” Mr Cook’s decision to expand its cash return programme of dividends and share buybacks helped to defuse the situation with the activists, returning $94bn to date. In the end, he stared down the challenge just long enough for the next wave of iPhone growth to hit and new products to emerge from Sir Jonathan Ive’s workshop. “I don’t think there are any companies that have survived big assaults from two of the biggest beasts in the hedge fund jungle,” says Ms Simpson of Calpers. “He is cool, calm and collected — the corporate exemplar of ‘Keep calm and carry on’.” That calm can sometimes be taken for a lack of the urgency that is vital in the fast-moving tech industry. Many were disappointed that Apple Watch was not made available to buy this year. But analysts say Apple’s approach of waiting until it has perfected a product usually leads to stronger long-term performance. Samsung, whose smartphone sales have suffered this year, is on its sixth-generation smartwatch, but has still not found a real hit. With the momentum now back behind the iPhone and anticipation growing for the Watch, Mr Cook seems to have won back the confidence of Apple employees, something that analysts say was obvious in his demeanour at this year’s product launches. “He’s had more of a sense of swagger and confidence” in recent months, says Jan Dawson of Jackdaw Research. At its Worldwide Developer Conference in June, Mr Cook was mobbed by app makers who asked him to pose for selfies. By October’s iPad launch, he was even cracking jokes at his own expense. Clad in his habitual but unglamorous uniform of black untucked shirt and jeans, he said that Apple Watch had

Apple after Steve Jobs ‘The company is organising around a less confrontational culture. We have to give Tim credit for that’

Cook on his image The Apple Watch was well received by ‘people who know a lot about fashion and style — even more than I do’ been well received by “people who know a lot about fashion and style — even more than I do”, pointing a knowing finger at the chuckling audience. “He’s informal, candid and approachable,” says Ginni Rometty, chief executive of IBM, who praises him as “very authentic. It’s the hallmark of a modern CEO. What you see is what you get.”

Opening up A partnership with IBM to sell iPads and iPhones to big corporate customers is just one example of how Apple is looking beyond its own walls more under Mr Cook, something Jobs had resisted. Among dozens of small, technologyfocused acquisitions, the $3bn purchase of Beats Electronics, the celebrity-endorsed headphones and music streaming service, stands out as Apple’s largest ever deal. The acquisition still bemuses many Apple analysts, but in Jimmy Iovine and Dr Dre, Beats’ founders, Mr Cook has instantly regained credibility with the music industry after years of neglecting the iTunes download store. If Mr Cook is guilty of missing the rapid growth of subscription services such as Spotify, he has moved swiftly to compensate for it — though for a high price. Prof Cusumano sees all this as evidence that the company is opening up more, including in allowing developers to customise more of its iOS software. Mr Cook must balance that with the secrecy that surrounds its product development. Already, there are whispers on Apple’s campus about another secret project, on the scale of the iPhone or Watch, which is pulling in talent from across Cupertino. But whether another hit product can emerge to fend off questions about Apple’s life after Jobs, Mr Cook learnt long ago to be patient and trust his instincts, just as he did when he ignored the doubters to join the then-struggling company in 1998. “Even though I’m an engineer and an analytical person at heart, the most important decisions I’ve ever made had nothing to do with any of that,” he told an interviewer at Duke University, where he studied for an MBA, last year. “They were always based on intuition.”

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FINANCIAL TIMES

Friday 12 December 2014

Letters

Email: [email protected] or Fax: +44 (0) 20 7873 5938 Include daytime telephone number and full address Corrections: [email protected]

Internationalisation of the renminbi: more hype than hope

FRIDAY 12 DECEMBER 2014

Spain’s flawed challenge to the mighty Google New copyright law signals determination to take on US search engine Google is in conflict with European governments and regulators on many fronts, most notably regarding its market power and its respect for personal privacy. But few issues are becoming as sensitive for the internet company as its disagreement with European publishers over issues of copyright. Infuriated by the loss of revenues that they say results from the republication of their material on the web, leading publishing companies across the EU have demanded the legal right to charge Google every time their content appears on the internet company’s news site. Now the Spanish government has obliged. Under a new law, which comes into effect at the start of next year, all online news aggregators will be required to pay Spanish publishers a fee for content that they link to. If they fail to pay the as yet unspecified sum, they will be fined up to $600,000. Google has already said that it will close its Spanish news service next week as a result of the legislation. And while it is by far the largest provider in Spain, it is not the only business to be affected. Infoaliment.com, a small Spanish aggregator, has also said it will shut down. Legislators and publishers across Europe have long expressed concern that Google’s pervasiveness means that existing copyright laws are not sufficiently strong to protect traditional media companies. In Europe, Google enjoys a market share of some 90 per cent of internet searches. While its news service links to publishers’ websites, the concern is that it is possible to convey the gist of many stories in a very few words, absolving the aggregator of the need to compensate the rights’ owner under existing copyright law. Nonetheless, Spain’s legislation, which comes into effect on January 1, looks draconian. Other EU states have

attempted to get to grips with the problem. This year, Germany passed new rules permitting publishers to charge sites such as Google whenever snippets of their articles are aggregated online. But that legislation allowed the publisher to decide whether or not to apply a charge. Most German companies abstained because they found the drop in traffic to be so steep once they were delisted that they were willing to allow Google to publish without having to pay. But Spain’s legislation does not leave this room for discretion. The mandated levy cannot be waived. It is not clear what this legislation is likely to achieve, other than to make clear Madrid’s dim view of Google. Denied the opportunity to showcase their content on the most widely used web search site, Spanish publishers will simply lose that advertising window. As the German example shows, they ultimately recognise the promotional value in being on an aggregator site. While Google will lose a feature from its Spanish service, it is not clear how it will be damaged by the move, since most other aggregators will also be knocked out. Google’s decision to shut down its Spanish news site will barely dent its European operations. But the company should not ignore the extent to which European governments are striving to pass laws designed to restrict its activities. The US internet company continues to take the view that its operations provide an unambiguous social and economic good. But it underestimates the extent to which governments and competitors in Europe regard the US company as a domineering presence and an economic threat. If Google fails to recognise this, it may face a more concerted attempt at the EU level to rein in its power.

Miliband tackles his deficit attention disorder Labour leader finally turns his mind to Britain’s borrowing problem Most conference speeches are entirely forgettable. In October, Ed Miliband managed to deliver one that was memorable only for what he forgot to say. Far from being an aberration, however, the failure of the Labour party leader to talk about the deficit reflected a settled policy of ignoring a problem to which he had no solution. This position has become increasingly untenable. Mr Miliband intends to lead Britain’s main opposition party into government next May, and sorely needs a credible fiscal strategy. Yesterday he finally gave the topic his attention, describing the outlines of a plan to bring balance to the UK public finances. Within the next parliament Labour would aim to deliver a surplus on the current budget, allowing borrowing only for capital investment. It plans for debt to start falling as a ratio of gross domestic product. Without ruling out tax rises, Ed Balls, shadow chancellor, has also warned his colleagues to expect cuts in departmental expenditure to achieve this goal. Labour’s decision to stake out a fiscal position is not only intended to reassure the bond markets. The aftermath of the government’s Autumn Statement has seen growing unease at the pace and scale of the public spending cuts pencilled in by George Osborne, chancellor. Mr Miliband’s speech is an attempt to make political capital out of this anxiety. His plans would allow Labour to support a state 2 or 3 percentage points of GDP larger than the one Mr Osborne envisages. There are still plenty of holes in Labour’s economic strategy. While blaming low wages for the high deficit, they have no policies fit to address this challenge. In fact, Mr Miliband’s punitive approach to business would make the problem worse by discouraging investment and enterprise. Many questions about spending remain

unanswered. Mr Miliband made little reference to the soaring welfare budget, nor hinted which departments would be in the line of fire. A proposal for higher property taxes to fund a £2.5bn increase in National Health Service spending would be swallowed up by inflation within a year. But the charge of vagueness could also be levelled at the Conservatives, whose plans require billions more in public spending cuts. In this regard, Labour is gambling that its strategy can score points for being both more realistic and humane. Yet these advantages are not won without cost. Under Mr Miliband, public debt would be significantly higher. It is currently expected to peak at above 80 per cent of GDP. Given a normal rate of economic growth, either of the parties’ plans would see that ratio come down — but the pace of reduction under the Conservatives would be twice as fast. By ignoring the fiscal problem for so long Labour has allowed trust in its economic competence to collapse and the coalition to define the terms of the debate. The Conservatives intend to exploit this by turning political attention from the deficit on to the question of how much public debt the UK can bear. Yet while debt ratios certainly need to come down, the Tories are yet to demonstrate why this has to proceed as quickly as their plans suggest, nor how it can be achieved without badly damaging public services. As a result, the space has finally opened up for a proper argument about fiscal policy, with clear blue water between the parties’ plans. Set against its former reticence, the outline that Labour sketched represents some sort of progress. On its own it will not be enough to recapture the confidence of the electorate. Over the next few months, Mr Miliband needs to be even more forthcoming.

Sir, In “Turning away from the dollar” (The Big Read, December 10), James Kynge and Josh Noble confirm what China’s leaders have been saying since the financial crisis in 2008, namely their disapproval of the US dollarbased global financial system. Nevertheless, each of the three changes cited as evidence that China is indeed turning away from the US dollar are more nuanced and questionable than they appear at first glance. It is true that China doesn’t like the continuous accrual of US Treasuries to its currency reserves, but for as long as it runs an external balance of payments surplus, it has no other choice. The external surplus has indeed fallen as a share of gross domestic product to around 2 per cent but we should not blindly extrapolate. As China rebalances its economy, and the investment share of GDP declines,

China’s external surplus is more likely to rise than fall. Twenty years from now, as China’s old age dependency rate soars, this may change, though in other mercantilist nations, such as Japan and Germany, it hasn’t. The investment rates have dropped, but the rise in aggregate savings has simply shifted from households to companies, and that is happening in China too. China’s sponsorship of three new development banks is an intriguing phenomenon, and suggests, as Mr Kynge and Mr Noble maintain, that the country is keen on promoting a global financial policy in which China’s capital outflows and the use of the renminbi become more important. But there has been a lot of grandstanding here. The New Development Bank will use US dollars. The Asia Infrastructure Investment Bank, which is half-owned by China,

Perception is heightened as President Xi tackles the corruption problem Sir, After recent reports referring to China slipping down Transparency International’s Corruption Perception Index (CPI), I would like to correct the misperception that this reflects negatively on its current anticorruption drive. On the contrary, by bringing to light past abuses, President Xi Jinping’s initiative has sharply raised awareness and public expression on this topic. It is precisely because China is tackling this problem (admittedly with uncertain determination or ultimate success) that measures like that of Transparency International show heightened perception of the problem. Indeed, this should be a goal for any effective deterrent to corrupt practices. From the observed movement of the CPI, one might argue that corruption was worse than expected in the past, but not that it is getting worse. David Roland-Holst Professor, Depts of Economics and Agricultural and Resource Economics, University of California, US

We simply don’t need so many humans Sir, Reforming immigration policies for Europe — and the other rich countries — may not even be needed if the technology gurus have it only half right (“Ageing Europe needs new blood to restore its economic health”, Global Insight,” December 8). The prospects for adopting labour-saving technologies in many of the labourintensive sectors in the economy are improving annually: self-checkout at supermarkets, self-check in and out at hotels, self-ordering and bill settlement in restaurants, self-administered health diagnostic tests and so on all translate into a reduced need for workers per dollar of gross domestic product on the one hand, and fewer total workers along with higher levels of GDP on the other. Horses were used extensively on the farm and in transport in 18th and 19th century America and Europe, but once mechanisation and electrification were implemented, and the railroad, automobiles and buses became commercially viable as transport

Farage, road rage and the ‘Top Gear’ political wing Notebook by Robert Shrimsley

‘We’ll just have to be ineffective without using torture from now on’ alternatives, owning horses became a hobby of the rich, and the horse population declined quickly and dramatically. The same can probably be said about humans in the 21st century: we just don’t need that many of them — and, in the rich countries, they are expensive to “produce” (prenatal and postnatal care), “assemble” (nurture and educate), and “maintain” (from adolescence to death). Ira Sohn Professor of Economics and Finance, Montclair State University, NJ, US

Yes, the CIA is flawed but it is not the enemy Sir, The Democratic majority of the Intelligence Committee of the US Senate has issued a thoroughly damning report accusing the CIA of exceeding its moral authority in instituting a rigorous interrogation of suspected Islamist radicals in the aftermath of the 9/11 attacks (“Senate accuses CIA of lying over brutal torture that leaves ‘stain’ on US values”, December 10). The findings, some of which are undoubtedly true, are disturbing, but so has been the committee’s investigative procedure. The Democratic majority on the committee conducted the investigation without Republican participation, the minority members having refused to join when it became apparent that Senator Dianne Feinstein, the committee chair, planned a partisan procedure. Thus, a one-sided

You have to sympathise with Nigel Farage, the leader of the anti-EU UK Independence party. There he was, stuck in traffic on the M4, a six-hour drive to the Welsh Ukip conference stretching interminably ahead of him. It is enough to make anyone lash out. To be fair, we’ve all been there. Well, not to a Welsh Ukip conference in Port Talbot, you understand, but fuming in some seemingly endless traffic jam, swearing at the dashboard at some improbable cause. (Traffic programme announcers sometimes like to attribute the delays to sheer volume of traffic — never just volume, always “sheer” volume — which seems rather like blaming thunderstorms on sheer volume of rain.) Of course, we only have Mr Farage’s word for it that his three to four-hour drive actually took “six hours and 15 minutes”. Perhaps he was lured into the Membury service station for a Whopper. But in any case, he was clearly sitting there, steaming. And as you do — well, as I do — you sit in your car moaning about the traffic and mouthing off safe in the knowledge that only your fellow passengers can hear you. (If one were looking to update the adage that no man is a hero to his valet, one possible alternative is that no motorist is a hero to his passengers.) When he finally reached Wales he was clearly still steaming. So when confronted by a BBC reporter about why he had disappointed his doting

will nevertheless need private capital, which will be picky about transparency and convertibility. The Silk Road Economic Project will be funded in part by China’s development banks in the western regions of China for the foreseeable future. The romance of the Silk Road is seductive and Chinese companies will doubtless look to be active in central and western Asia, but China is looking to its geopolitical leverage here, not an eastern Marshall Plan. Finally, there is a world of difference between greater use of the renminbi in the settlement and invoicing of world trade and finance transactions, and its use as a global or reserve currency. The former is internationalisation, which is proceeding apace as Mr Kynge and Mr Noble point out. The latter cannot happen unless or until China runs perpetual external deficits,

which will not happen any time soon, or it has built up a more trusted and deeper financial market infrastructure and, significantly, unless it allows its own residents unfettered access to physical, financial and portfolio capital markets overseas. When the Chinese talk about capital market liberalisation, this is at least one thing they do not mean. It is easy to talk about disliking or turning away from the US dollar in the global system. China’s rhetoric and initiatives have stirred this debate, and there is no question that from small beginnings, the renminbi will become a more widely used currency, similar to the Japanese yen, Swiss franc and pound sterling. The rest is, for the foreseeable future, more hype than hope. George Magnus London N6, UK

investigation. And it gets worse, for no witnesses were heard. The entire investigation relied on written file material without context that could have been acquired from first-hand witnesses. Worse still is that some conclusions, including that “enhanced interrogation” techniques yielded no actionable intelligence, simply defy logic and are denied by former CIA officers who were present at the actual questioning. We must recognise that Marquis of Queensberry rules do not apply in this combat, and that William Skardon (1904-1987), the legendary chief investigator for MI5, is no longer available to guide our efforts. The CIA is not the enemy Ms Feinstein’s Democratic majority would have us believe. Flawed yes, but still on the right side. Paul Bloustein Cincinnati, OH, US

Industry leaders’ climate demands made a mockery of Human Rights Day

Sir, The CIA is reported as conceding that it made mistakes in its treatment of alleged terrorist captives. Since when has the deliberate infliction of torture been “a mistake”? Horrendous, degrading, grossly immoral — yet a mistake? Some years ago Hillary Clinton, as US secretary of state, confessed to “misspeaking” — when she had made something up. Others have spoken of being “economical with the actuality”, when they have deliberately misled. And, returning to torture, the CIA and certain political leaders describe it as “enhanced” interrogation, with “enhanced” giving it the air of the spiritual and uplifting. Is it not time to tell things as they are — especially when they involve such horrific and degrading acts? Peter Cave London W1, UK

Debts are always paid — by someone Sir, Alfredo Pastor’s subtle use of words spreads an unfortunate misconception that debts (exceptionally of course) can end up unpaid (Letters, December 8). I put to you that throughout history no debt has ever ended up unpaid. The reason is simple: when borrowers fail to pay, lenders end up picking up the tab. By default. João Miguel Ejarque Copenhagen, Denmark

members — some of whom had paid £25 for the pleasure of doting in person — Mr Farage reverted to glaring-at-his-dashboard mode. Flashing that jolly look he deploys when he is about to say something truly outrageous, he replied that he had been delayed in traffic, caused mainly by immigrants on the M4 — because of the “population going through the roof, chiefly because of open-door immigration”. It was a bold defence. The M4 is often busy, but I’ve never seen a demographic breakdown. You did once find a lot of Romans on the road to Bath but the carriageways have been upgraded a fair bit since then. Mr Farage’s opponents jumped on the remark as a racist gaffe, proof that the mask had slipped. It was admittedly loose talk even for the Ukip leader, the kind of unverifiable rhetoric more suited to George Orwell’s “two minutes hate”. In a way, the mask did slip — but not perhaps in the manner most might think. This was not the Ukip leader showing himself to be a bit more racist than his opponents imagine. Mr Farage and his cohorts don’t care if urban liberals are outraged by his comments. He cannot be hurt, and may even be strengthened, by the opprobrium of those who already dislike him. He is not talking to them, and the people he is talking to don’t see anything wrong in what he said. They like his message that Britain is “full up”. The true self Mr Farage was

Sir, The demands by industry leaders for a “greater say in climate talks” (FT.com, December 10) insult the very concept of Human Rights Day. Corporations that pollute the atmosphere enjoy billions of dollars in subsidies, representation in many government delegations and invitations to UN panels as experts. International protection of corporate interests and investors’ rights has time and again crippled responses to the climate crisis, impeded justice for human rights violations by resource extraction companies and stamped a polluter’s bill of rights over the voices of people. Business does not need more representation in the climate negotiations — it has no business being here in the first place. Lucia Ortiz Economic Justice and Resisting Neoliberalism Co-ordinator, Friends of the Earth International

India, are you paying attention? Sir, For someone like me who arrived in Hong Kong not long ago, the recent movement, led mostly by young students, was an eye-opener. The more so since I come from India where street protests and movements are pretty common. What really struck me was the peaceful manner in which the students were able to convey their demands to the powers that be. One can only hope that protesters in countries like India watched the Hong Kong students and relearnt the message of peaceful and non-violent protest, so effectively used by the great Mahatma Gandhi. If this happens, the Umbrella Revolution will certainly have served a big, though unintended, purpose as far as the common public is concerned in countries like India. Samir K Jha Taikoo, Hong Kong THE BIG READ ON FT.COM Person of the Year Tim Cook, chief executive of Apple, stamped his identity on the business in 2014 www.ft.com/podcast

showing was not some crypto-fascist or closet Nazi. He was showing that he is, in essence, an angry man in a car. He and his party are road rage manifested in the political system. They are seething drivers stuck in the slow lane, complaining about crumbling infrastructure, useless governments and bloody foreigners. Ukip is the political wing of Top Gear — and Mr Farage is the unthinking man’s Jeremy Clarkson. (Or is it the thinking man’s; I can never decide.) Naturally there are legitimate complaints mixed in with the rage, not least about infrastructure that has not kept pace with population growth. But Ukip fundamentally combines the howls of an establishment class that somehow considers itself now outside the political mainstream with the more comprehensible anger of the dispossessed working class. An unholy union of “white van man” and leather driving gloves. Both feel an older better England has been taken away and — like Top Gear — lash out at alien classes, be they foreigners, minorities or anyone who does not conform to a world view set in aspic in the era of Fanny Cradock. Mr Clarkson laughs at outsiders; Mr Farage is less generous. But both are yearning for an older world; a world in which no one, but no one, dared get in the way of an Englishman in his motor car. [email protected]

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Friday 12 December 2014

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FINANCIAL TIMES

Comment Market prices send the Fed mixed messages FINANCE

Gillian Tett

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his month, American consumers have received some early Christmas presents. Late last week, US payroll data revealed that the pace of job creation in America is now running at its highest level since 1999, as the economy continues to expand. Then this week the average price of petrol at the pump tumbled to $2.77 a gallon, some 61 cents below last December, due to falling oil prices. In a country that is addicted to cars, that could put another $100bn into the pockets of American households next year, Moody’s calculates. And there are other gifts. Global food prices are now about 5 per cent lower than last year. Even core US consumer price inflation (which excludes those volatile

commodities) has quietly slid to just 1.5 per cent a year, well below the 3 per cent level that consumers anticipated according to surveys. Or to put it another way, American households are now experiencing that rare blend of expansion with low prices. It is a mix that might make Santa smile. But sadly there is one big catch. Though lower consumer prices are a blessing for households, they leave the Federal Reserve in a bind. In recent weeks, it has been assumed in the financial markets that the Fed will start raising US interest rates in the middle of next year. Indeed, these expectations are now so well entrenched that many investors believe that when the Fed’s Open Market Committee meets next week it will modify its statement to remove a prior pledge to keep interest rates rock-bottom low “for a considerable period of time”. On the face of it, it seems there is every reason for the Fed to act. Growth next year is projected to be about 3 per cent, a healthy number; it could be nearer 4 per cent if consumers spend that projected $100bn petrol windfall.

Meanwhile, there is mounting evidence that the Fed’s super loose policy has been stoking excessive prices rises — if not dangerous bubbles — in numerous asset classes, ranging from art to risky corporate bonds to tech stocks. But the rub is that it would be very unusual, to put it mildly, for a central bank to tighten policy when inflation is so low, and falling. After all, the current

Given this, the most likely outcome is that the Fed will keep playing for time. That seems sensible 1.5 per cent rate is well below the Fed’s 2 per cent target. And what is really notable — and challenging for the Fed — is that the markets imply inflation rate could soon fall further. Take a look, for example, at the socalled “break-even rate” compiled by the St Louis Fed (this tracks the average future inflation rate implied by the difference between conventional and

inflation-linked treasuries). This week, the five-year rate fell as low as 1.24 per cent, while the 10-year rate sank to 1.71 per cent. That is well below the Fed’s target and lower than this summer, when rates were around 2 and 2.3 per cent respectively. They are now heading towards levels seen in the financial panic of 2008. Fed officials are uncertain about how to interpret this. Some officials, such as Stanley Fischer, deputy chairman, think this pattern is just a temporary effect of tumbling oil prices, which will fade once energy prices have been reset to a lower norm. They also think the message from that break-even index is being distorted by thin liquidity in global bond markets. They are consequently tempted to ignore the inflation numbers, particularly since there is a good chance that unemployment will sink below 5.5 per cent early next year — which the Fed thinks is the natural rate. Bill Dudley, governor of the New York Fed, recently hinted that falling commodity prices should actually strengthen the case for a rate rise because it will fuel US growth. But another strand of thought insists

that the Fed should not just ignore its inflation target. After all, this argument goes, not everything can be blamed on oil: as Eric Rosengren of the Boston Fed points out, the weak global growth outlook is suppressing prices, too. So is the bifurcated US labour market, where a minority of elite of workers enjoy high wages and security, but the majority remain plagued by low wages and insecure jobs, with a vanishing middle. Given this, the most likely outcome is that the Fed will keep playing for time. That seems sensible, given how much uncertainty surrounds the commodity markets, and the potentially momentous impact of the swing in prices. Meanwhile, there are two key points for investors to note. Firstly, this debate is a reminder that a big gap has opened up between the direction of asset prices and consumer prices. Secondly, as long as that gap keeps widening, central banks will remain caught in a trap, and the potential for bond market volatility will remain high. All eyes on the FOMC. And those petrol stations. [email protected]

London should break free from Little England GLOBAL POLITICS

Philip Stephens

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ondon does not need a mayor; it needs a prime minister. Britain is fracturing. Scotland may yet quit the union and England turn its back on Europe. The Conservatives are throwing up barricades against the immigrants who are the capital’s lifeblood. The world’s most vibrant capital city cannot entrust its fate to a little England. This is a moment to imagine a different future: independence. Boris Johnson, the present mayor, says he too wants power shifted from Westminster to City Hall. His demands — for a tad more financial autonomy and oversight of the courts — are piffling. Unsurprisingly so. Mr Johnson will soon vacate City Hall for the House of Commons. He aches to replace David Cameron in Downing Street. Mr Johnson’s loyalties to London count for nothing against consuming ambition. The economics of independence speak for themselves. With a population of 8.5m (closer to 13.5m in the wider metropolitan area) London accounts for more than a fifth of Britain’s gross domestic product and generates as big a chunk of its tax revenues. This gives it an economy about the size of Sweden.

Unemployment is less than 3 per cent; the demographic profile is more youthful than in the rest of the UK. Tourists spend £20bn each year in the capital. The metropolis has become a hub for high-value global businesses reaching well beyond its traditional role as a preeminent centre for financial services. It is the chosen home of the footloose super-rich and those at the bottom of the pile with the energy and grit to lift themselves out of hardship. London hums with enterprise, energy and people having fun. For those who do not fret about the ethnicity of their neighbours, it is a great place to live. Less well understood is that the capital has all the other attributes of a modern state: a natural frontier, superb transport links, first rate education and health networks, unrivalled heritage and cultural centres — even a readymade head of state. Then there are the six first class soccer teams in the Premier League and the spiritual homes of cricket and rugby at Lord’s and Twickenham. Sure, independence would leave some rough edges. Assets and debts would have to be fairly allocated between the separating parties. London can afford to be generous. The M25 orbital motorway is the ready-made frontier, providing access into the city and fast connections to the rest of England. The road’s on and off ramps are perfect sites for border control posts, though, in this the digital age, electronic surveillance and recognition devices would replace old-fashioned immigration queues. The identity chips

Martin Wolf ast week’s Autumn Statement marked the beginning of serious campaigning for the British general election due next May. George Osborne, Conservative chancellor of the exchequer, set out his perspective clearly. Ed Miliband, Labour’s leader, has responded this week. Where do the two main parties differ? And what chance does either have of delivering what they promise? Start with the second question. By far the most important economic uncertainty is over productivity. As the Office for Budget Responsibility notes, productivity has increasing on average by a mere 0.5 per cent a year since 2008. If it were to remain so low, economic GROWTH might fall to 1 per cent in 2016-17 and then below even that, as the

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economy reaches full employment. But if productivity were to have a burst of growth after the long lull, the economy might expand at about 4 per cent a year for some years. Given these uncertainties, we have little idea what will happen to the economy and the fiscal position. The political uncertainty is yet more striking. The two main parties have lost their purchase on the electorate; neither is likely to win outright. Research from YouGov indicates that the other parties together now have more support than either the Conservatives or Labour. The Scottish National party might even end up with more than 40 seats at Westminster. The likeliest outcomes are a coalition or a minority government. For a long time, the UK was a boringly stable democracy. It is still a democracy. But it is not boring. Nevertheless, the main parties’ fiscal choices will shape the campaign and frame choices for the next government. Policy makers have to make two big decisions: first, over the targets for the fiscal balance and public debt; and, second, over the relationship between tax increases and spending cuts.

OPINION

Nobuko Kobayashi

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apan’s carmakers are gleaming symbols of industrial strength. But there is one area in which they are not so shiny yet: employment practices that squander the potential of Japanese women. Both Toyota and Nissan have no women on their boards; Honda appointed its first only this year. The picture is repeated across Japanese industry, where women hold only 7 per cent of managerial positions compared with almost 45 per cent in the US. Female role models in Japanese business are few and far between. One of the few is Mitsuru Claire Chino, an executive officer at Itochu Corporation, a large general trading company. But she is such an unusual case that when she was appointed last year, the mere act of placing a woman in a senior job was enough to make headlines. Yet Japan needs women in senior positions in business everywhere, as the country seeks to prop up its declining working-age population and boost its faltering economy. Politicians know as much. In the run-up to Sunday’s general election, all the parties have spoken of introducing measures to support young families, so that women can both have families and work full-time. Yet there is a crucial point no one wants to address: a work culture that favours men. Bosses (mostly men) expect their staff to work as they did when they were young — which means long hours. It is important to be present to please the boss, whether or not the hours are productive. Even at foreign-owned compa-

The typical work culture calls for ‘nomi-kai’ — after-hours drinking sessions with colleagues now embedded in passports could readily be adapted for car windscreens. Heathrow, of course, is scarcely a good advertisement for a 21st century city state. But, under new management, it could be turned into a half-decent airport. The rest of England would inherit Gatwick as the entry point for airlines to the south east. Passenger ferries from London to the rest of Europe would run from the Thames port of Tilbury, while Dover devolved to the rump England. With its boroughs and town halls, London has the political infrastructure for a new democracy. Their electoral registers would determine eligibility to vote in an independence referendum. Assuming a Yes — I cannot imagine any other possibility — a new parliament would be established at Westminster.

The M25 orbital motorway is the ready-made frontier, its on and off ramps perfect for border control posts

London would eschew centralised government, adopting instead a federal constitution modelled on the one British officials wrote for the German Federal Republic. The city would thus recall a lesson Britain has forgotten: power is best exercised close to the people. Queen Elizabeth would retain her home at Buckingham Palace as the city state’s constitutional monarch. Membership of the Commonwealth would follow. The new state would join the EU, lifting the threat to the health of its global financial institutions and other professional services. Free of the influence of the europhobes (Nigel Farage’s UK Independence party scores badly in the capital), it would join the border-free Schengen area, ensuring its doors remained open to Polish doctors, Italian designers and French mathematicians. For a time, at least, London would keep the pound. The rest of England would be free to share the currency. Thus liberated, the capital would recognise that diversity is its strength. The children already doing most to raise standards in its schools are the offspring

of first-generation immigrants. For non-EU citizens, there would be a liberal, points-based immigration regime to attract the best and brightest from around the world and match employment openings with skills. Special arrangements would operate for workers travelling into the city from England. This should not be a problem. Britain already has an open borders model in the common travel area with Ireland. If England chose to build a fence on its side of the M25, however, its citizens would have to compete with Indian IT engineers and Brazilian entrepreneurs for work permits in London. Doubtless, the pinched English nationalists of Ukip and antiimmigration pressure groups would cry foul. Tant pis. Their vision of statehood, fixated on the proportion of the population that is “white”, is confounded by London’s success. Saloon bar bores in the home counties can be left to their anguished debates about identity. Londoners should break free. [email protected]

The battle over public finances will define Britain ECONOMICS

Male bonding and ‘chivalry’ hold Japanese women back

On both points, the Conservatives’ plans are commendably clear. They indicate a desire to deliver an overall fiscal surplus of 1 per cent of gross domestic product by 2019-20, against a deficit of 5 per cent this fiscal year (and 10.2 per cent in 2009-10). This would be delivered by curbs on spending, which is forecast to decline from 40.5 per cent of GDP this year (and 45.3 per cent in

The case for achieving an overall fiscal surplus in the next parliament is not overwhelming 2009-10) to 35.2 per cent in 2019-20 — the lowest ratio since the 1930s. Meanwhile, the ratio of fiscal receipts to GDP would rise slightly, from 35.5 per cent to 36.2 per cent of GDP. If delivered, these plans would put the UK in much the same place as today’s US in terms of the size of “general government”. These plans are indeed radical. That is certain. Mr Miliband’s announcement is less

clear. But Labour is committed to a surplus on the current budget alone (and so excluding spending on investment). In 2019-20, on OBR forecasts, spending as a proportion of GDP could — other things being equal — be about 2 percentage points higher under Labour’s plans, at about 37.5 per cent. Accordingly, the reduction in spending would be 3 per cent of GDP, against more than 5 per cent under the Tories. Labour would be cutting, but by substantially less. Which fiscal objective makes most sense? In normal times, balancing the current budget is the better choice. This is particularly true when, as now, the government can borrow to invest at long-term real rates of interest of near zero. The argument against is that public sector net debt is now too high, at about 80 per cent of GDP. Thus, a surplus would bring the debt ratio back to nearly 30 per cent by the mid-2030s, while a balanced current budget would bring it back to only 60 per cent. Yet this last is not the only consideration. It is unlikely that the further radical cuts in spending implied by the chancellor’s plans could be delivered

without compromising the ability to deliver the level of public services and transfers the public expects. That cuts have occurred without a huge political backlash so far does not disprove this. Furthermore, the chancellor’s plans also have implications for the balance between income and spending in the rest of the economy. The OBR forecasts that the household sector would move to “a historically large” financial deficit of 3.1 per cent of GDP in 2019, while the ratio of household debt to income would hit an all-time peak. This is worrying. The case for achieving an overall fiscal surplus in the next parliament is not overwhelming. The opportunity to borrow more for investment is too valuable, though the current budget should indeed be in surplus. Furthermore, if the aim should be an overall surplus, taxes need to rise. Otherwise, too much of the cost would fall on the most vulnerable people. Big questions arise over how fiscally prudent the UK needs to be. Equally big are those over who should bear the cost. [email protected]

nies such as mine, junior consultants sometimes stick around to provide moral support while others burn the midnight oil, sacrificing personal time in the cause of “team spirit”. The typical work culture at Japanese corporations calls for nomi-kai — afterhours sessions drinking and bonding with colleagues. It is less common than it once was for these end up at Tokyo’s kyaba-kura (cabaret clubs), where hostesses sit at the table and grease the conversation. But it still happens, and female colleagues are not welcome. So what do women do? Well, we put up with it. We are brought up to play nice. We want to please the boss and avoid ruffling feathers. Eventually the pressure of juggling work and family life takes its toll. My best friend works at one of Japan’s largest trading conglomerates. Of a large cohort of female graduates hired 20 years ago, she tells me she is the only one who is still working there. The few who persevere face another hurdle: male colleagues and bosses who try to “protect” them from excessive workloads. This prevents women being assigned to supposedly tougher projects or sent on business trips. This is not a conscious effort to exclude women from senior roles. I have spoken to highly educated and successful men over 40 who genuinely believe the “fair sex” needs extra care. Their misplaced chivalry deprives female colleagues of opportunities, hurting their prospects when it comes to senior managerial roles. The message to the younger generation is that working seriously and professionally does not pay off. Can changing the work culture have an impact? There are encouraging glimpses of progress. Legal departments at Japanese corporations generally employ a higher percentage of women — sometimes up to 40 per cent — because here brainpower is all that matters, and face time is less important in a support role. Furthermore, the notion of “protecting” women is less prevalent. Is it a coincidence that Ms Chino, the executive officer at Itochu, hails from the legal department? It is a start, but Japan needs to replicate this across all its industries. Progress will mean changing the way performance is measured and rewarded. Women themselves, with support from a new generation of men, need to be catalyst for change. Japan must not pay lip service to harnessing the potential of its women. The writer is partner-elect at the Tokyo office of AT Kearney, a consultancy

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FINANCIAL TIMES

Friday 12 December 2014

BUSINESS LIFE Personal technology

Best podcast apps Playlists, alerts and settings as podcasters win a new hearing TIM BRADSHAW

Sarah Koenig, the journalist who makes Serial

The man mending careers and hearts WORKING LIVES

Emma Jacobs Destructive habits at work are often mirrored in relationships, according to Manj Weerasekera, a coach who tackles both

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anj Weerasekera had an itch of an idea that would not go away. The executive coach kept meeting senior businessmen who in the course of their work-focused meetings would reveal that they were having relationship problems at home. It was only after entrusting career problems to him that they felt comfortable enough to discuss their personal lives. Mr Weerasekera, a 50-year-old divorcee, today dressed in a navy cowl-neck jumper, describes himself as “happily divorced”, meaning he had an amicable split rather than being pleased to see the back of his wife. He thought these men needed a helping hand, not from a therapist but a coach. Today, after offering such services for three years, he says 40 per cent of his work is dedicated to guiding divorced men to their ideal partner. Such advice does not come cheap. Mr Weerasekera charges up to £2,500 a month for his services — this buys 90 minutes of face-to-face private coaching in his office in central London, and unlimited phone calls and emails — and might see a client for eight months (though, he points out, there is free advice available on his website).

When he started researching his business idea, he was struck by recurring problems for people in new relationships post-divorce. “The more I talked to men, I found a pattern . . . There is a large percentage of men who end up marrying the same woman in a different body,” he says. Originally an engineer who worked for NCR and subsequent spin-offs when they were bought by AT&T, Mr Weerasekera, who has six sisters and parents who came from Sri Lanka, had a “healthy interest in amateur psychology” and trained as a coach. Finally he decided to step off the corporate ladder and go it alone, coaching executives from banks, telecoms and oil companies, on how to change their mindset. After helping professionals boost their careers for a number of years, he started to look into the market offering help to divorced men. There was, he realised, little competition. “I found a decent coach in America and another teaching men how to hide their assets,” he says. “It’s such an open space, there’s space for a lot of good coaches.” The books aimed at men tended to be mired in the 1970s, proffering tips to divorced men on how to date, or written by pick-up artists teaching men how to play the game and bed women. On mention of Julien Blanc, the pick-up artist extraordinaire who was last month banned entry from the UK, after being accused of championing sexual assault, Mr Weerasekera visibly recoils, emphasising that he is not operating at the “sleazy end”. He has a precise demographic in fact: a male executive (“in middle to higher management”), over 40-years-old. Most importantly, “they’re interested in attracting the right person for a longterm relationship, learning from their mistakes”. This is all about mindset changes, he says. There are parallels in business. Mr Weerasekera finds his cli-

ents believe that leaving a company will solve their career problems. “People often run away from themselves but they don’t realise they’re taking them with them . . . [They’ve] got to change their thinking.” Many of his clients find making changes in their personal life far scarier than in their working life. The metric for success is when a client says: “Actually this isn’t scary, I know what to do . . . I’m feeling more confident in myself.” He insists he has been invited to a few wedding ceremonies and introduced as the groom’s coach, and very occasionally as a dating guru. One of the biggest hurdles for single men to overcome, he claims, is antago-

The ‘happily divorced’ Manj Weerasekera Daniel Jones

Many of his clients find making changes in their personal life far scarier than in their working life nism towards their ex-wives. On a first date, too many complain about their exes, according to the coach. “How attractive is that?” (The answer, if in doubt, is not very). “So what we do is lose the baggage. It doesn’t mean you erase everything that happened. Just dampen the impact.” Mr Weerasekera, sipping peppermint tea in a bar of a hotel in Putney, southwest London, close to his home, speaks with precision. He is not recommending that people fake it on a first date — if they have not made their peace with the past the festering resentment and anger will only come out later. The next step is to “design the type of woman” the client would like to meet. While many focus on appearance, Mr

Weerasekera insists that what most of his clients are hankering after is to “feel they can be themselves in a relationship”. He cites one man — a typical client — who came to him, by way of example. His ex-wife no longer shared his interests and they had grown apart. One of his passions was yoga; she was not interested. “That type of thing [can prompt] ridicule . . . can lead to arguments.” So Mr Weerasekera asked his client a salient question. “In order to attract that type of woman, what type of man do you need to be?” The client needed some self-improvement. After 20 years of marriage, he had let his appearance slip: his paunch was soft, his wardrobe, dated and his personal grooming below par. The coach has a list of professionals — personal shoppers and trainers, grooming experts — to help. “One of the mistakes men make is they think they can do it on their own and they don’t need to. Why wouldn’t you find an expert to say, ‘I think this cut of jacket would suit you better’?” He might also advise on an online dating profile. The most common mistakes his clients make are taking bad selfies with a webcam or picking flattering portraits that are 20 years out of date as well as writing bland personal statements, recounting a love of walks, reading the weekend papers and watching a DVD from the sofa. A breezy reference to their status as divorced is important too. In his opinion too many men “jump in” to dating too soon after a separation (he also believes that women wait too long). One man he worked with posted his dating profile online just 48 hours after deciding to divorce. He also believes that people should stop seeing divorce as failure. He reflects on his own experience. “When we were together we were great.” [email protected] Twitter: @emmavj

Blissbasket spares India’s blushes in spite of risqué products A web retailer has found a way to tap Indians’ private desires, says Amy Kazmin Ancient India gave the world the Kama Sutra, a poetic guide to sexual pleasure, with in-depth descriptions of desireenhancing techniques and creative copulation positions, but contemporary Indians are so reticent about sexual matters that even buying condoms can be excruciating. “If someone is standing there in a medical store buying something else, someone won’t be able to say, ‘I want to buy condoms,’” says 28-year-old Mayur Masrani, the scion of a family of commodity exporters. “The shop has to be free from customers. Only then would they be able to buy condoms.” But Mr Masrani says young Indians are keen to explore their sexual sides — and ecommerce offers the ideal mechanism. In January, the entrepreneur launched Blissbasket, an online retailer dedicated to selling “romantic products”. Edible lingerie; chocolate and

strawberry body paint; sexy teddies, tight corsets and revealing g-strings; raspberry- and mango-flavoured lubricant, satin blindfolds, small handcuffs, sex toys and condoms are all on offer, as are naughty games, pulp fiction like Fifty Shades of Grey, an array of sexual manuals, and academic treatises on human sexuality. The imagery on Blissbasket’s homepage suggests its wares belong in a context of love, romance and joy. In one cartoon, a boy and girl smooch under a tree. “We are born to love and be loved,” the tagline reads, while another says, “couples who play together stay together”. “People are definitely looking for something quirky or raunchy to spice up their sex life, or romantic life,” Mr Masrani says. “They are not looking for hard core products. It’s more about romance.” The response, he says, is “fantastic”. Without advertising and relying on word of mouth, sales are

An adult board game on sale at Blissbasket

growing 40 per cent month on month, he reports. In November, the site received 650 orders, with an average value of Rs1,600 (£16), from big cities and small towns across India. Mr Masrani got the idea for Blissbasket after trying to buy edible lingerie in India for a newly married friend. Shopkeepers had never heard of the stuff, offering pornography instead. A year later, Blissbasket went live. “The category I am concentrating on is really sexual wellness,” he says. “It hasn’t existed in India before.” Blissbasket, funded entirely by its founder, is not the only etailer of bedroom paraphernalia. India’s biggest online marketplaces, Flipkart, Amazon and Snapdeal, offer sexual wellness products like condoms and pleasureenhancing sex toys. Still, Mr Masrani, who also supplies

items sold on Flipkart and Snapdeal, believes there is room for a dedicated site catering exclusively to Indian erotic desires. “Even in the medical profession, a generalist is one thing, and a specialist is something else,” he says. “We are specialists in this category.” Blissbasket emphasises protection of customers’ anonymity and privacy; its products arrive in a plain brown box with no identifying labels. It gives elaborate product descriptions suggesting how customers might use unfamiliar items and will discreetly answer common queries. Navigating India’s broad-brush obscenity law has been a challenge. Mr Masrani learned the hard way — by having an import consignment destroyed — that vibrators shaped like genitalia are banned in India, although “massagers” are all right. Blissbasket now sells around 500 different items, but expects to offer 1,200 items within the next two months. It is forecasting vigorous growth ahead. “It’s a perfect business for ecommerce,” says Mr Masrani. “There is no embarrassment factor.”

The Serial phenomenon has thrown podcasting back into the headlines in the past couple of months, spearheading a revival in downloadable episodic radio. If this intimate telling of a true-life murder investigation has piqued your interest in podcasts, there are many apps out there that can improve your listening experience, help you find new podcasts and manage them into playlists. But it’s a crowded market, so here are a handful that improve on the rather rudimentary Podcasts app that Apple bundles with every iPhone. Best for beginners: Overcast From the developer behind readit-later app Instapaper, Overcast puts customised playlists front and centre. The home screen is divided into playlists and a list of podcasts you subscribe to. If you connect your Twitter account, Overcast will suggest items that people you follow have listened to. An assortment of other lists can be followed with a single tap. Simple and intuitive, it is a good place to start for newcomers to podcasts, but its features feel limited next to many similar apps. Free, with extra features for $5; iOS only

Best for free: Instacast This solid, free app is unencumbered by banner ads. However, it falls a little short in design and it buries some of its features in a side menu. The home screen can be set to a list of podcasts you have subscribed to, or a list of their latest episodes, or unplayed downloads. You can receive alerts when new episodes are available for podcasts you subscribe to. To find new podcasts, tap through lists of genres, authors (including media groups) and the most popular with the app’s users. During listening, the player controls are clean and simple, with buttons for speeding up speech, setting a sleep timer or bookmarking a point to come back to later. Free, with extra features for $0.99, iOS only Best design: Castro For aficionados of a minimalist approach to software design, Castro is one of the slickest podcast apps, full of swipe-based controls that do away with navigation buttons wherever possible. Opening the app lands you straight in a list of most recent episodes — which I

prefer because it removes a step before you can start listening. The play screen has only a few buttons but does include a particularly good “scrubbing” control, where you pull a finger along the progress bar to skip to a different point. More advanced settings in a separate menu include accelerated or slowed-down playback speed with smoothed-out audio. However, you do have to have an idea already of what you want to listen to, since Castro does not make recommendations. $4, iOS only Best for personalisation: Stitcher Sign up, select a few podcasts you like, and this free app uses what it has learnt about you to make further suggestions. The results are presented a bit like Facebook’s news feed, with big images and the option to listen immediately or save it on a “listen later” playlist. Stitcher also allows you to browse new or “trending” shows, and also explore content according to usual categories. Playback includes a car-friendly option with supersized buttons you can jab without having to peer at them, as well as the option to give a “thumbs up” to help improve its recommendation algorithm. The only downside: banner ads that pop up from time to time. Free, iOS and Android Best overall: Pocket Casts Pocket Casts is a comprehensive but elegant podcasting app for both iPhone and Android. The home screen is a grid of a dozen or more podcast icons. Tap one, and a list of episodes appears, with the option to download, stream or add it to your queue of items to listen to. Swipe right from the home screen to see its “episode filters” list, which can be customised to include a subset of your subscriptions. A key feature is automatic downloading and notification of new episodes, so they are ready to play as soon as you open the app. Discovery is also a strong point. As well as browsing the top charts, groups of broadcasters and broad categories, the Pocket Casts team highlight interesting new podcasts that might otherwise go unnoticed. $4 iOS and Android

An ear for terrestrial radio

TuneIn Radio While podcasts are great for catching up with internet broadcasters, TuneIn brings the world’s traditional radio to your smartphone. This

popular free app offers more than 100,000 terrestrial stations to listen to live. Earlier this year it got an overhaul, making it easier to discover interesting radio from around the world and adding social-networking features, such as the ability to follow stations or see what friends are listening to.

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Friday 12 December 2014

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FINANCIAL TIMES

ARTS

A saga so stretched, even Wagner would call ‘cut!’ Hat-trick: Ian McKellen leads the charge in the final part of the ‘Hobbit’ trilogy. Below: Mosab Hassan Yousef in ‘The Green Prince’

CINEMA

Nigel Andrews

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he new technique in largescreen storytelling is to tell a whopper, then follow it with a prologue whopper no less whopping. The Hobbit trilogy, like the Star Wars prequels, suggests that the answer to “Can you have too much of a good thing?” is, first, “Yes”, then “What is the philosophical definition of a good thing?” Sometimes the same term, or almost same, has two opposite meanings. Take stupendous and stupefying. Thanks to the miracles of CGI and Peter Jackson’s imagination The Hobbit: The Battle of the Five Armies is both: a kind of twoand-a-half-hour frenzied swoon in which the special effects never stop, the gargantuanism never lets up, and a critic who has long since lost the plot (never knowingly having finished reading Tolkien as a youth) clutches at speeding dialogue like fly-by signposts. Unfortunately the dialogue this time is a mixture of embattled vernacular and Shakespearean name-soup. You need a knife and fork as well as spoon for all the Oakenshields, Arkenstones, Elvenkings. This isn’t the best script of the Tolkiens to date; in fact it’s the worst. Trippy in the wrong way; high on a kind of doper shorthand that assumes — possibly correctly — that paying devotees will recognise every name, rank, serial number and buzz-nomenclature. If not they will be left, like me, sorting the exclamatory leftover babble, usually uttered in midbattle. “Slaughter them all”; “There are too many of these buggers, Thorin, I hope you’ve got a plan . . . ” The series has started to look retro in the wrong way: retro Jackson, reaching back only into itself. The first trilogy had beautiful, often thrilling invocations of gothic artist-illustrators: Gustave Doré, Salvator Rosa, Arthur Rackham. The Hobbitsaga,remouldingthesamemulch,

The Hobbit: The Battle of the Five Armies Peter Jackson

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The Green Prince Nadav Schirman

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Manakamana Stephanie Spray, Pacho Velez

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Merchants of Doubt Robert Kenner

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stretches it towards twee one way, bombast the other. The opening scene’s dragon attack on Lake-town is a tour de force, but you have to like tourist-style force: a picture-postcard-Dickensian Nevertown bombed by a firebreather so show-off-hyperkinetic it spoils us for the remainingfull-lengththemeride. After that it’s an alternation almost regimented between quaint but fulsomely cosmeticised idylls or interludes — dwarves, designer-Hobbitish Martin Freeman, Shire epilogue — and cast-ofmillions battle scenes. Since we know these are conjurable on computer there’s little thrill of DeMille; more runof-de-mill as the turning wheel of Jackson’s invention produces ever the same waves of almighty action choreography. The massed militias moving into frame; the encircling mountains with skylined demi-monsters; the crunching, cleaving combat close-ups; the final triumph of good over evil. Even Richard Wagner knew when to stop. Thirteen hours, four operas: time to wrap. Peter Jackson has now done his Ring Cycle Part Two. Enough,

Left-field and lush with an iron logic Top brass: Avishai Cohen at The Vortex in London

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Avishai Cohen’s Triveni Vortex Jazz Club, London

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Roger Thomas

Mike Hobart Avishai Cohen is a refreshingly original trumpeter with a distinctive sound, and influences that stretch far back into the jazz tradition. Solos dart from swing era slurs to smooth modernist lines, and bursts of post-bop angularity end in spiky folk melodies straight out of the contemporary left-field. At this packed jazz club date, his repertoire was equally wide-ranging. The first set presented an original instyle tribute to Ornette Coleman, “Mr OC”, and a moving reading of Charles Mingus’s “Goodbye Pork Pie Hat”. The second included an achingly slow “Lush Life”, a Basie band showcase and Frank Foster’s “Shiny Stockings”, and had Dizzy Gillespie’s “Woody’n’You” as an encore. Cohen was raised in Tel Aviv – he moved to New York in 1998 – and adds Middle Eastern laments and folk dance jollies to the mix. At this gig, he held it confidently together with an iron logic and a band that marked core structures while letting the music breathe. The France-based bassist Yoni

OPERA

La Clemenza di Tito Théâtre des Champs-Élysées, Paris

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Francis Carlin This new staging of Mozart’s penultimate opera takes place in a grand hotel lobby in the interwar years. What relevance this update has for an opera about a court intrigue in ancient Rome never becomes clear. Director Denis Podalydès moves the cast around efficiently, does nothing with the chorus — often a weakness with producers from the straight theatre — and makes a bid for originality by having an actress recite Bérénice’s farewell from the Racine tragedy before the overture. The intense exchanges during the recitatives have to battle with clattering arpeggios from an overactive fortepiano — its role should be to accompany not play a concerto — so arguably the theatre would be more effective with a silvery harpsichord in the pit. Even so, today’s really original

Zelnik had a fat sound and a forceful attack, but the linchpin was the relationship between Cohen and drummer Nasheet Waits, who has been a Triveni trio regular since the band released their first album in 2010 – this date was the penultimate show of an extensive European tour promoting their third album, Dark Nights and Darker Days. The trumpeter has a strong, centred tone that remains slightly breathy and fragile at the edges, and drummer Waits has an equally complex spectrum of sound. Short, stubby press rolls were crisply delivered, but ended in resonant whumps or the rattle of a broken march,

while cymbals swished and then cohered into economical swing of enormous power. Throughout the gig, Cohen and Waits interwove, changed direction and delivered mutual support with extraordinary empathy and no trace of visual cue. Zelnik, needing only the occasional nod, was not far behind. At times, there was so much space that silence became a sound; at others the music was as densely layered as a medium-sized band. It was a riveting performance that pushed at extremes and always had surprises in store.

approach would be to go for togas, a forum and temples. At least that way the offstage arson in the Capitol would work; here we are meant to believe the hotel itself is burning but its occupants flout the fire drill by singing on bravely despite the engulfing smoke. Directorial silliness apart, the production has one big advantage: Eric Ruf’s

handsome panelled interior acts as a sound box for what is generally a very fine cast. La Clemenza di Tito is a dramatically feeble venture centred on manic dithering, so any production that, wittingly or not, allows the singers to bloom is on to a good thing. Karina Gauvin makes an imposing Vitellia, Julie Fuchs a peachy Servilia and Robert Gleadow a strong Publio while Julie Boulianne’s earnest, powerfully sung Annio is a mezzo voice to watch. Only Kurt Streit’s Tito — expressive but edgy and even shouty — is a disappointment. The biggest ovation went to the other mezzo, Kate Lindsey, as Sesto, the opera’s linchpin. Blessed with a voice that can cover several emotional registers, she takes huge risks in her big aria, “Parto, parto”, but romps home triumphant. Jérémie Rhorer’s splendid conducting has authority, breadth and clarity. Tempi are daringly contrasted but somehow never seem mannered. His period instrument band, Le Cercle de l’Harmonie, has never sounded better.

Kate Lindsey, left, and Karina Guavin

theatrechampselysees.fr

vortexjazz.co.uk

surely, for the present and for any foreseeable future. Nadav Schirman’s The Green Prince is a true-life thriller presented as narrative reconstruction surgery. It’s fascinating to watch and hear the documentary’s “hero”, Palestinian-born Israeli agent Mosab Hassan Yousef, tell his story to camera, in alternation with his secret service handler Gonen Ben Yitzhak. It enriches that fascination to have Schirman’s inter-threadings of historical film, surveillance footage and re-enactment scenes (lit and angled for teasing obliquity) as this tale of a turncoat Muslim asks questions more urgent today — arguably — than ever before. Should you be faithful to the family, people and religion you were born to? (Mosab was the son of a Hamas founder.) Or in a world of fanaticism and faith-licensed folly, should you “betray” the values of your background and their upholders? The question posed here is whether Israel is a milder, or more rational and enlightened, monster than Hamas. Yes, for the film’s

purposes. Food for feud outside it. As cinema it’s spellbinding. Mosab’s face, lit as if by the glow of an interrogation lamp, and Mosab’s voice, forceful and conviction-impelled until a momentary late cracking with emotion, make him an irresistible storyteller. And then there is the story: Le Carré for real, with twists, turns and those most telling torture scenes of all, the ones that put a man in a bare room, metaphorically speaking, and confront him with his conscience. What price a work of conceptual art if you can’t stand its concept? That’s what I thought during the first scenes of Manakamana. Then the film’s seemingly idiotic idea begins to seem holy-idiotic: mad, simple, incandescent, a Prince Myshkin of ideas. All that American filmmakers StephanieSprayandPachoVelezdois shoot 11 separate passenger journeys, each in an 11-minute take, up(duringthefilm’sfirst half) and then down a cable-car ride

to/from a Nepalese mountain shrine. It’s “pure cinema” to a degree delirious. One: the 11-minute trip exactly matches the capacity of a 16mm film reel. Two: the fixed-camera journeys in the car spool between turning-points just like a camera mechanism. Three: one lot of “passengers” in a viewing “vehicle” — we filmgoers — are watching for two hours another lot of ditto. If you feel such cinema should be made arrestable, sample it yourself to learn otherwise. What makes Manakamana sing — apart from the chant of cables punctuated by the rattle-clang sforzandi each time we skirt a pylon — is the human interest. Some passengers talk; others don’t talk but radiate thought, curiosity, preoccupation, rapture or just Buddhistic beatitude. One trip features goats; another, heavy metal rockers; a third, three talky old ladies unspooling, Norn-like, the story of the shrine’s god. All human life is here, and some meta-human, in an artistic container you never thought you’d travel in, or enjoy if you did. The most abused word in the media world is “experts”. If every expert on TV or in feature documentaries were a true expert, we’d be drowning in expertise like a Second Flood. But they’re not and we’re not. Down the decades, Merchants of Doubt argues and illustrates, charlatan scientists and scholars have been mobilised by the hand of oil or tobacco, this documentary’s villains, to retaliate against truth and true expertise — that cigarettes kill people and fossil fuels kill planets — with the expertise of pseudoscholastic scepticism. “There’s no evidence that . . . ”; “It’s only a theory that . . . ”; “Statistics can show that . . . ” Statistics can show that scoundrels are scoundrels; and that the only thing worse than someone crying wolf when there isn’t one is someone refusing to cry wolf when there is. Chastening; grimlyfunny;salutary.

14

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Friday 12 December 2014

Join the club Lending Club loan issuance mechanism after loan approval

Investors Borrowers Loan certificates

Twitter: @FTLex Email: [email protected]

Money

Technology, had filed for bankruptcy just months before. As for the Watch, when Apple lives happily ever after, its suppliers may or may not. All singlefunction components commoditise in the end. That, alas, is no fable.

Taiwan tech: the screen and the cycle Once upon a time, in a kingdom called Taiwan, lived many happy companies making electronics. They provided decent goods at low prices, more efficiently than anyone else. They were beloved by gadget sellers and consumers alike, even if the latter did not know the companies’ names, or even that they existed. At least the hard-working companies didn’t care for fame. In the early years, Taiwanese companies were very good at assembling laptops and computers. Margins were thin, but volumes were good. In later years, when smartphone sales were growing at more than 20 per cent a year and the sector was dominated by Samsung and Apple, times were even better. Component makers and assemblers did well (when Samsung and Apple said it was OK). One day, things changed: Chinese companies started making cheap phones. Sector growth looked likely to slow down and manufacturers had to work harder to keep up. Companies such as Largan (lenses) and Catcher (metal casings) and TSMC (semiconductors) produced products that were very hard to make, trendy or had many applications and profound economies of scale. These enjoyed 40 to 50 per cent gross margins. This made for happiness. Others made commodity components with specific applications. Screens, for instance, were a crowded business. With the TV market maturing, there was overcapacity. This was very sad. One part of the screen industry made good money: the touch function. Not many companies could make them. Those that could, such as TPK and Wintek, made gross margins in the mid teens. But in time that, too, changed. Touch became easier to integrate; TPK and Wintek were no longer so special. Worse, laptop touch screens did not catch on. Wintek suffered from overexpansion. TPK had spent about $500m on a big new plant due to open in 2014; it delayed opening the facility but it looked likely it would have to open in early 2015. This was sad, too. Two things could save TPK: adoption of sapphire displays or huge success for the Watch. TPK was hopeful, but the omens were not great. Apple’s sapphire screen partner, GT Advanced

Eurozone banks: horsing around Loan Investors’ certificates money

Miners: race to the bottom

Loan certificate Money

It takes about 45 days for an iron ore carrier to sail from Brazil to China. So the first fruits of Minas Rio should be arriving any day now. Anglo American spent $5bn to buy this mine and almost $9bn to develop it, incurring $4bn in impairments and losing a chief executive along the way, before it could ship the first 80,000 tonnes of ore in late October. Spot iron ore prices were $79 per tonne then. They have fallen by $10 while the ore was in the hold. And that, an investor might declare, is why Anglo American’s shares are changing hands for just 10 times next year’s forecast earnings, and will not be trading higher in the near future. Miners fed oversupply with their spending. They are reaping the results. BHP Billiton has lost $70bn in market capitalisation since the end of July, or nearly the entire value of another big iron ore miner, Rio Tinto. BHP also produces oil. But both it and Rio will keep the pedal to the metal with iron ore expansion next year. With four-tenths of its operating earnings from iron ore, Anglo will be affected by the flood of supply despite selling other commodities, too (and unusual ones, like diamonds). Anglo also promised investors that it could raise returns on capital employed to 15 per cent by 2016. That target has now retreated into the depths. It assumed $7.3bn of earnings before interest and tax by 2016, using spot prices from June 2013. Plug in the consensus for 2016 prices and ebit drops to $5bn for a 12 per cent ROCE. This might all be a repeat of the usual lesson of investing in miners. However much operational progress gets made — and finishing Minas Rio counts a lot — big commodity price drops can obscure it. True. But then, Minas Rio will not have to be built again (future impairments are another matter). Its ore is low cost to produce. Anglo may stay cheap. But its holes are

Issuing bank (LC subsidary) FT graphic. Source: company

Revolutions tend to eat their firstborn. Lending Club wants to lead a “peer-to-peer” lending revolution. The $9bn valuation it received when it floated yesterday (after a huge first-day pop) is astonishing. The company, after all, had just $160m in revenues over the past year. A multiple of 50 times sales is a bet that a company will take over a fastgrowing market. But the first mover does not always dominate. Lending Club is positioned for fast growth because it is not a bank at all, but a middleman. It is to banking as Uber is to cars: it brings people who want to borrow money together with those who want to lend. Nearly all its revenues are origination fees of about 4 per cent, on average, collected for

matchmaking. The borrower gets quicker approval than walking into a bank branch. Lenders can diversify across many borrowers, reducing credit risk. Lending returns are also good, approaching double-digits. The fees, and lack of balance sheet risk for Lending Club itself — that belongs to the lenders — makes this a simple, juicy business. Today, the consumer lending market covers nearly $2tn in loans. P2P hasn’t even scratched the surface with origination volume of just $9bn. But when the revolution is over, will Lending Club still be the leader? By listing first and getting attention for its novelty, it gains an advantage. But there are dozens of start-ups on its heels and those second movers will

learn from Lending Club’s mistakes (think of all the regulatory problems that Uber is running into). Traditional banks should not be too worried. Lending Club and its copycats have not had to weather a full credit and economic cycle. Higher rates or higher defaults could quickly diminish P2Ps appeal to lenders. And the lending market is so vast that P2P could be a collaborator with traditional financial institutions who could pawn off customers that it finds unprofitable to P2P. Mechanics aside, Lending Club has not justified its valuation. It is, essentially, a website. The irony is that the company has made a better case for lending through its platform than for investing in its equity.

dug. You cannot say that about BHP or Rio Tinto. And no matter how cheap iron ore gets, costs matter.

meanwhile, its strategy centres on increasing broadband penetration (70 per cent) and 4G mobile coverage (75 per cent). It has hinted that while it likes its position in Brazil, it is prepared to consider bids for TIM. This attitude toward Brazil keeps the pot simmering. Recent reports suggest that Spain’s Telefónica, along with Claro (owned by Carlos Slim’s América Móvil) and Oi might bid $15bn for TIM. This values TIM at seven times enterprise value to estimated earnings before interest, tax, depreciation and amortisation, according to Berenberg, a decent premium to the 5-6 times at which its Brazilian peers trade. TI should be greedy. Brazil represents a fifth of group ebitda, and even the modest profit there is stronger than what Italy offers. Yes,

consolidation is needed in the Brazilian telecoms market. Competition among the four big players is hot. But Moody’s points out that if TI acted as the consolidator in Brazil its credit rating would suffer. If TI cannot act as consolidator, it should entertain offers and be patient until a rich one comes in. It can afford to wait. According to Credit Suisse, TI will have free cash flow of more than €3bn this year and next. Net debt is less than 3 times ebitda — so while a big purchase would be a challenge, it needn’t rush to cut leverage. The proceeds from a deal could reduce debt, fund a payout and leave room for investment at home. TI’s shares have had a good run over the past year, up 38 per cent, well ahead of the MSCI European Telecoms index at 17 per cent. Stay at the table.

Telecom Italia: stewing nicely The slow-food movement started in 1986 as a protest against fast-food chains opening in Italy. Perhaps the time has now come for a slow company movement. Telecom Italia could be a founding member. It has good ingredients. It just needs them to come together in their own time. TI is Italy’s incumbent operator and owns two-thirds of the Brazilian mobile company TIM Participacoes, the country’s second largest. In Italy,

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Abu Dhabi Amsterdam Ankara Athens Bahrain Barcelona 1020 Beijing Belfast Belgrade Berlin Brussels Budapest Cairo Cardiff Chicago Cologne Copenhagen Delhi 9 Dubai Dublin Edinburgh Frankfurt Geneva 19 Hamburg Helsinki Hong Kong Istanbul Lisbon London Los Angeles Wind speed Luxembourg in KPH Madrid

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Lending Club has orginated over $6bn of current loans. Borrowers use funds to refinance debt (60%), pay off credit cards (22%) and for business (2%). Almost 80% of lenders are institutional investors

ACROSS 1 Piece of mathematics old geometers worked out – hard to penetrate it (6,7) 9 International organisation’s team is loose (going round in circles) (7) 10 Adroitness of female actually existing (7) 11 Girl collecting gold and hard white stuff (5) 12 So sincere about a big financial problem (9) 13 Good person feels irritation – result of surgical treatment? (8) 15 Moderate anger (6) 18 Quality of wood that is a bit twisted at one end (6) 19 Lifeless principal is a fishy type (8) 22 What may be on smartphone – pictures etc showing food (5,4) 24 Brush could alternatively be shrub (5) 25 Away team no longer in the changing room? (7) 26 See weed grow out of control – rodent will eat it (7) 27 Drivers into the ground make offensive comments to Upton Park players (13) DOWN 1 A university peters out after good reunions (7) 2 Me? I’d stop awful tyranny (9) 3 Overweight woman eating last bit of hamburger (5) 4 Cheaper and nastier item for wiping marble? (8)

Sun Rain Rain Rain Sun Sun Sun Sleet Sun Rain Rain Fair Sun Shower Fair Shower Shower Sun Sun Fair Shower Rain Fair Rain Snow Fair Rain Cloudy Rain Shower Rain Sun

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You can lead a horse to water. You can put the water in a tall glass, add ice, a wedge of lemon and a cute little paper umbrella. You can bring the bendy straw right up to the horse’s lips. But if the horse is not thirsty, it will not drink. Thus the eurozone’s banks took up only €130bn of the €317bn available in the second round of the European Central Bank’s targeted longer-term refinancing operations (TLTRO). This gives the banks very cheap loans (at 15 basis points) for four years as a way of encouraging lending to businesses. The banks showed more interest than in the first round (when €83bn was slurped up), yet the take-up fell short of forecasts of €170bn. Reluctance to take cheap money gives credence to the banks’ claim that low business lending is down to a lack of demand. An alternative explanation, advanced by RBS, is that the low takeup highlights the banks’ lack of capital. With capital buffers thin, they do not want the risk of small business lending. The €213bn taken across both parts of the TLTRO will not stretch far. It is tiny in the context of the eurozone’s banks, the 10 largest of which have a combined balance sheet of more than €11tn. Some of the money taken will be used to pay off other types of central bank liquidity. But it could make a difference in some places. In the first part of the TLTRO, much of the money went to banks on the periphery, where deposit rates are high and business lending is low. According to Morgan Stanley, deposit rates in Greece are almost 200 basis points (and even Italy is over 100). In that context, taking money from the ECB at 15 basis points should help to cut the cost of loans and so stimulate volume. But as a whole, €130bn of TLTRO money will not turn the eurozone’s banks, which are shuffling around like seaside donkeys, into racehorses. And the trainer, Mr Draghi, is getting to the end of his tether. He should stop messing around with water, and dip into his box of steroids. It’s the one with “QE” in big letters on the lid. Lex on the web For notes on today’s breaking stories go to www.ft.com/lex

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Friday 12 December 2014

‘Ouch’ potential The prospect of enhanced volatility in 2015 RALPH ATKINS, PAGE 28

Google

Glencore

German 10-year bond yield

Dollar index

Kospi

Shanghai Composite

Gold

Brent

1.25% $532.64

3.74% 295p

0bp 0.67%

0.47% 88.68

1.5% 1,917

0.5% 2,926

0.4% $1,226

23c $64.47

Google shuts news service in Spain Move signals tougher line in face of hostile legal and political environment in Europe THOMAS HALE — MADRID MURAD AHMED — LONDON

Google is shutting down its news service in Spain in one of the technology company’s most defiant responses to an increasingly hostile legal and political environment in Europe. The internet company said it was closing Google News in response to a law due to take effect in January that will force news aggregators to pay Spanish publishers a fee for content they link to. European publishing groups urged politicians not to back down from implementing the law, arguing that the Californian company’s drastic step was an attempt to whip up a

“public outcry” against the measure. The move is a sign that Google is taking a tougher line against the avalanche of legal challenges it has faced in Europe, indicating it may withdraw services from the region if the regulatory climate becomes too inhospitable. Late in November, the European Parliament voted for a motion calling on regulators to consider the break-up of the company. Though the move was symbolic, it was seen as an attempt to apply political pressure on the European Commission, which is considering an antitrust investigation into Google. On Wednesday night, Google announced that its news service in Spain — news.google.es — would cease to exist

on December 16. The rest of its operations in the country will be unaffected. “We’re incredibly sad to announce that, due to recent changes in Spanish law, we will be removing Spanish publishers from Google News and closing Google News in Spain,” said Richard Gingras, head of Google News. Google News is distinct from the company’s search engine. It uses an algorithm to filter and present news tailored in both language and content to the location of the user. As such, it primarily links to stories from publishers in the country in which the reader is based. Worldwide, Google sends about 10bn clicks each month to news publishers, with 1bn coming from Google News,

European publishing groups argued Google’s step was an attempt to whip up ‘public outcry’

according to the company. The Spanish law does not target search engines or social media websites, which also direct traffic to news websites. But it stands to affect news filtering services provided by other online groups, including Yahoo News. European publishers have been some of the most vocal proponents of restrictions on Google’s activities. Thomas Höppner, legal counsel to an informal coalition of European publishers, described Google’s decision as “a victory” that “shows the effectiveness of the Spanish law”. Additional reporting by Alex Barker and Duncan Robinson in Brussels Editorial comment page 10

Streamliner Europe aims for sleeker, safer trucks Big trucks on Europe’s roads could eventually look like this Concept S Aeroliner after new voluntary rules were agreed by EU governments to improve the environmental performance and safety features of the continent’s heavy transport vehicles. Designed by German truckmaker Man and trailer manufacturer Krone, the Concept S has the aerodynamic shape and lower panels that reduce both fuel consumption and the threat to pedestrians and cyclists of being dragged under or run over by the vehicle in a collision. Current brick-shaped lorries account for 25 per cent of road transport carbon dioxide emissions and almost 15 per cent of all fatal road collisions in Europe. But heavy lobbying by the truck industry won agreement that manufacturers will not be able to introduce new designs until 2022. They argued that the long lead time needed to produce new truck models required a delay in scrapping current mandatory regulations. European lorries tend to have short high cabins with blunt front ends to comply with restrictions on weight and length, unlike the long-nosed shapes typical of US trucks.

Short View James Mackintosh Neither a borrower nor a lender be, said Shakespeare. Europe’s banks seem to be listening to the counsel of his character Polonius, refusing to take up their allocation of long-term money from the European Central Bank. This in spite of the fact that the interest rate of 0.15 per cent is well below that available to some of the cash-strapped peripheral governments which are part-owners of the ECB. Yesterday banks took up just €130bn of a possible €317bn, short of what had been already quite pessimistic forecasts from analysts. For the ECB this represents failure for the first of its two big projects since the summer that are designed to put some vim into the eurozone economy and boost inflation back towards its 2 per cent target. There are still six more targeted longer-term refinancing operations (TLTROs), so the ECB might get lucky. Against that, banks must repay €256bn from the original 2011-12 LTROs by February 26, tightening money in the region. The ECB said last week it “intended” to expand its balance sheet by €1tn, but both TLTROs and the paltry amounts of bank assets being bought under its second project make the goal look wildly optimistic. The original LTROs were popular, but banks were able to take the money and use it to buy high-yielding peripheral government bonds. The Italian 1-year bond yielded almost 6 per cent when the first LTRO loans were made; it now yields 0.4 per cent. Worse, with TLTROs, after a year banks are supposed to use the money to lend to small businesses, requiring capital they do not have to spare. The apparent failure of the TLTROs should make the ECB more likely to buy government bonds directly. But Germany’s objections remain unchanged; as Polonius put it, “borrowing dulls the edge of husbandry”. In today’s jargon, there is moral hazard in financing Italy. When the ECB meets next month, Greece may be on the brink of an election. With hard-left Syriza leading in the polls, it would be hard for the ECB to consider buying Greek bonds — yet doubly contentious to buy just non-Greek eurozone bonds. “Loan oft loses both itself and friend,” Polonius said. Friendship is already stretched between Europe’s north and south. Will the money be lost, too?

Free money out of favour Three-year LTROs and TLTROs (€bn)

Source: ECB

Industry wins delay page 18 [email protected]

Barclays and Deutsche Bank probed over suspected use of forex algorithms GINA CHON — WASHINGTON MARTIN ARNOLD — LONDON

Are the clouds beginning to part for Microsoft? Microsoft has become the biggest seller of cloud services to business customers, ahead of IBM and Oracle. It is a sign that under chief executive Satya Nadella, the world’s biggest software company is finally making headway as it looks beyond the PC era. Analysis i PAGE 17

New York’s top banking regulator is investigating whether Barclays and Deutsche Bank used algorithms to manipulate foreign exchange rates, which could raise the fines they face, a person familiar with the probe said. The state’s Department of Financial Services is reviewing whether the use of algorithms in bank currency trading suggests a systemic problem at the lenders, as opposed to wrongdoing by several rogue traders, the person said. If the algorithms are seen as a bankwide issue, the DFS could seek bigger penalties, the person added. The probe is one of the reasons why the DFS, led by

Benjamin Lawsky, declined to take part in a broad forex settlement with banks. In November, UBS, Citigroup, JPMorgan Chase, HSBC, Royal Bank of Scotland and Bank of America were fined more than $4bn for their role in a forex rate-rigging scandal. The UK’s Financial Conduct Authority and the US’s Commodity Futures Trading Commission were part of that settlement. But the US Department of Justice and the DFS were not and their investigations are continuing. The DoJ’s probe includes the six banks that were part of the broad settlement, and the investigation is expected to result in large fines and criminal findings. The DFS is investigating about a dozen banks. Deutsche said it had “received

requests for information from regulatory authorities that are investigating trading in the foreign exchange market. The bank is co-operating with those investigations, and will take disciplinary action with regards to individuals if merited.” Barclays declined to comment. The UK bank dropped out of the wider settlement reached in November at the last minute when it learnt that the DFS would not participate in that agreement. It is unclear whether other regulators are aware of the algorithms. They were discovered through the DFS’s bank monitoring system that it has set up at Barclays and Deutsche, the person familiar with the probe said.

Companies / Sectors / People Companies

Daily Mail.....................................................16

JPMorgan Chase................................15,18

Quindell.........................................................27

Walgreens...................................................20

Bloomberg, Michael...............................16

AOL....................................................................3

Delta Air Lines..........................................16

Largan ..........................................................14

Renault .........................................................18

Washington Post.....................................16

Brégier, Fabrice........................................16

AbbVie...........................................................27

Deutsche Bank..........................................15

Legal & General.......................................27

Royal Bank of Scotland.......................15

Wintek......................................................14,17

Costa, Ken...................................................20

Airbus.............................................................16

Dixons .............................................................9

Lending Club.............................................27

SHV..................................................................16

Xiaomi............................................................18

Ecclestone, Bernie...................................21

Alliance Boots..........................................20

eBay...................................................................3

London Metal Exchange....................26

Salesforce....................................................26

Yahoo.............................................................27

Gingras, Richard.......................................15

Amazon...........................................................3

Eli Lilly...........................................................27

Lufthansa..................................................3,16

Samsung.................................................14,18

Harald Wilhelm, ......................................16

América Móvil...........................................14

Ericsson.........................................................18

Sectors

Jacobson, Paul..........................................16

Apple...........................................4,9,14,17,18

Eskom...............................................................3

Aerospace & Defence...........................16

Bank of America.................................15,18

European Central Bank.......................27

Banks..................................................15,18,26

Lawsky, Benjamin....................................15

Barclays.........................................................15

Flipkart...........................................................18

Food & Drug..............................................16

Lewis, Will....................................................16

Burberry..........................................................9

General Motors........................................26

Gen Financial.............................................26

Micklethwait, John..................................16

CNN.................................................................16

GlaxoSmithKline.......................................21

Ind Transport.............................................15

Nadella, Satya............................................17

Campbell Soup.........................................26

Glencore.......................................................27

Media.........................................................15,16

Rashbass, Andrew..................................16

Canon...............................................................4

Goldman Sachs .......................................18

Mobile & Telecoms................................18

Skinner, James.........................................20

Cargill..............................................................16

Google........................................................9,15

Nissan...............................................................4

Real Estate.................................................20

Thompson, Mark......................................16

Carmignac...................................................26

HSBC...............................................................15

Nutreco..........................................................16

The Guardian.............................................16

Technology HW & Equ..................17,18

Turness, Deborah....................................16

Catcher ........................................................14

Hewlett-Packard.....................................26

Office Depot..............................................27

Toshiba...........................................................4

Travel & Leisure......................................16

Vázquez, Jorge........................................26

Cisco..................................................................3

IBM.....................................................................9

Oi.......................................................................14

UBS..................................................................15

People

Wintour, Anna...........................................16

Citigroup.................................................15,18

IGas..................................................................27

Philip Morris International................26

Urban Outfitters......................................27

Baker, Gerry................................................16

Yan, Tang.....................................................18

ConocoPhillips...........................................16

IOMart............................................................27

Qatar Investment Authority............20

Volvo...............................................................18

Ballmer, Steve............................................17

Zetsche, Dieter.........................................16

© The Financial Times Limited 2014

Merck .............................................................21 Microsoft...................................................3,17 Momo.............................................................27 Morgan Stanley........................................18 NML Capital...............................................26 Netease.........................................................18 New York Times......................................16

Shire................................................................27 Songbird Estates....................................20 Staples...........................................................27 Starboard Value......................................27 TIM Participacoes...................................14 TPK..................................................................14 TSMC..............................................................14 Telecom Italia............................................14 Telefónica....................................................14

Week 50

The low take-up of TLTROs is a failure of the first of the ECB’s two projects designed to put some vim into the eurozone economy

16

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FINANCIAL TIMES

Friday 12 December 2014

COMPANIES INSIDE BUSINESS

Commodities

Cargill to launch solo bid for Nutreco US trader asks for access to Dutch group’s books after dropping Permira The battle for Nutreco intensified yesterday after US agricultural trader Cargill announced that it would make a standalone bid for the Dutch fish and animal feed group. The move by the US commodities trading group comes after Nutreco agreed a €3bn offer from Dutch conglomerate SHV at €44.50 a share. Nutreco shares jumped almost 5 per cent to €46.90 on anticipation of a higher Cargill bid. The growth in demand for meat and fish as the world’s

population becomes richer has made Nutreco an attractive acquisition target. Nutreco had previously dismissed a joint offer made by Cargill and private equity group Permira on the grounds that it would lead to the break-up of the company. Nutreco also said the joint offer lacked details and refused to give the two companies access to its books in order to conduct due diligence. By working alone, privately held Cargill aims to buy Nutreco as a whole, removing the issue about a potential break-up. “After extensive study, we decided to continue on a standalone basis, and consider an offer for the whole of Nutreco,” Cargill said. “We believe we would be very good stewards of the Nutreco business in the interest of all stakeholders.” The agreement between Nutreco and

Aerospace

Travel & leisure

EMIKO TERAZONO — LONDON

SHV, a 118-year-old gas to retail conglomerate run by the Fentener van Vlissingen family, requires any counter bid to be 8 per cent higher than the existing offer of €44.50 a share. This means that Cargill will have to offer at least €48.06 a share. Cargill did not provide a value for its potential offer, saying that it needed access to Nutreco’s books before it could attach a price. “In order to understand whether Cargill can arrive at a proposition that would be attractive to all stakeholders, we have asked Nutreco to provide us access to due diligence,” it said. But Nutreco said Cargill’s communication, understood to have been made on Wednesday, was insufficient for the Dutch group to offer access to its books. It said: “We have not received a con-

€3bn Offer from Dutch conglomerate SHV that was agreed at €44.50 a share

€46.90 The Nutreco share price jumped 5% on anticipation of a Cargill bid

crete, written proposal that is likely to qualify or evolve to a competing offer. There is no doubt that it is clear to Cargill what will constitute a potential competing offer and what they need to do if they want to make a proposal that allows Nutreco to potentially engage.” Shareholders have been calling for Nutreco to open its books to Cargill. APG, a Dutch pension fund holding about 10 per cent of Nutreco said yesterday: “We expect that interested parties receive a fair and equal opportunity to bring out a substantiated offer.” Paul Koster, director of the VEB, the influential Dutch retail shareholders’ association, said: “This only increases the pressure on Nutreco to look seriously on how they are going to take this deal further.”

Airbus plays down fears over future of the A380 MICHAEL STOTHARD — PARIS

Shares in Airbus fell for a second day as management scrambled to reassure investors about the future of its superjumbo A380 project and its medium- to long-term financial prospects. The aerospace and defence group’s shares fell 10 per cent on Wednesday after it reined in earnings expectations for 2016 and Harald Wilhelm, chief financial officer, suggested Airbus could “discontinue” the A380 as early as 2018. Mr Wilhelm told analysts in London, without elaborating further, that Airbus would break even on the A380 through 2018, “if we would do something on the product, or even if we would discontinue the product”. Yesterday, following an angry reaction from some airline customers, Airbus sought to play down concerns that the A380 would be abandoned, instead emphasising that improving and modifying the superjumbo was the most likely scenario. The largest customer is Dubai-based Emirates Airline. Fabrice Brégier, who leads Airbus’ passenger jet division, said the development of a new engine as well as a stretch variant would happen “one day,” asking “where is the problem with the A380?” The four-engine A380 entered service in 2007 and since then has struggled to generate large sales. It has long prompted internal debate at Airbus about the future of the programme. As shares in Airbus fell 4 per cent yesterday, Airbus also sought to reassure investors about profitability, playing down concerns about cuts to production rates amid the transition from the A330 wide-body jet to a new version, called the A330 Neo. “Yes, there is a risk the [production] rate will come down, but this is not the point,” said Mr Wilhelm. “The point is that this is the way forward for the [A330] Neo that will then ramp up and that will provide a clear bridge into profitability.”

Falling fuel price set to boost Delta’s fortunes ROBERT WRIGHT — NEW YORK

Delta Air Lines expects lower fuel prices to produce an annual net cost benefit of $1.7bn, the company said yesterday, in the latest sign of how falling fuel prices are boosting the fortunes of big US carriers. Delta gave the estimate at an investor day in New York at which the company also said it expected pre-tax profit of $4.5bn in 2014, up $1.9bn compared with last year. The company’s shares surged almost 5 per cent on the announcements, to $48.38. Delta has taken an unusual approach to managing fuel prices by purchasing the Trainer oil refinery next to Philadelphia airport. Delta has also persevered with significantly older — and hence more fuelhungry — aircraft than other US airlines, betting that it can maintain the passenger jets better than competitors and therefore save on capital spending.

Strong path: Delta Air Lines’ decision to buy an oil refinery means it is likely to profit from this unusual approach to managing prices — Paul Sancya/AP

Paul Jacobson, chief financial officer, claimed both strategies were proving successful. The refinery — which has lost money heavily during periods after Delta bought it from ConocoPhillips in 2012 — was expected to contribute $70m to operating profit in the fourth quarter, and the company was successfully managing expenses. “I think we’re on a strong path,” Mr Jacobson said. “We’ve created a lot of value. We have a lot more value to create.” Delta and other US airlines have enjoyed sharply rebounding profitability in recent years as a series of mergers have reduced cut-throat competition, and the US economic recovery has encouraged travel. Delta said its cost per available seat mile excluding fuel expenses would rise by only 1 per cent for the last three months of 2014 compared with the fourth quarter last year. “The cost performance has been a

really terrific performance over the last couple of years,” Mr Jacobson said. However, Delta would increase its overall seating capacity by about 3.5 per cent in the fourth quarter compared with the same period last year. “We’re not so focused on cost discipline that we miss out on investing in the product,” Mr Jacobson said. The US airline industry still had considerable opportunities to improve its profitability given recent consolidation, he added. “We talk a lot about still being in the relative infancy of consolidation, learning to be comfortable in our own skin, learning to appreciate the economies of scale that this industry has never seen before,” Mr Jacobson said. Delta estimated that its distinctive fuel strategy should gain it an 8c to 10c per gallon advantage over competitors. It expected to pay an average $2.88 per gallon this year, against $2.97 for the wider industry.

Legal Notices

Airlines More news and analysis on airlines at FT.com/ travel-leisure

MEDIA

Matthew Garrahan

City that never sleeps wakes up to British media’s global reach

I

t is 50 years since The Beatles-led assault on the US pop charts was dubbed the “British invasion”, and three decades have passed since Colin Welland accepted his screenplay Oscar for Chariots of Fire with the rallying cry “The British are coming!” A group of Britons is once again leading a charge on a corner of US media but this time they have crossed the Atlantic to colonise the upper echelons of the news business, rather than music or movies. The latest member of this club is John Micklethwait, the editor of the Economist, who was hired by Michael Bloomberg this week to replace Matt Winkler as the editor-in-chief of Bloomberg News. Mr Micklethwait starts in New York early next year, where he will take over from one of journalism’s bestknown figures, overseeing 2,500 journalists in a deeppocketed news operation that is among the largest in the world. It will be a step change from his role at The Economist but if he finds himself pining for some British company, he will not have to look very far. Mark Thompson, the former director-general of the BBC, is a few blocks away in Manhattan at the New York Times headquarters on eighth Avenue, where he serves as chief executive. Closer still to Bloomberg’s Madison Avenue offices, is the Wall Street Journal, where Gerry Baker, a former Financial Times columnist, is editor. Mr Baker’s boss, Will Lewis, the chief executive of Dow Jones, is also British, as is Anna Wintour, editor in chief of Vogue, and Joanna Coles, the editor of Cosmopolitan magazine. Andrew Rashbass, the chief executive of Reuters (and a former chief executive of the Economist) is also a Brit. Though he is based in London, he oversees a huge newsroom in Times Square, while other stateside expats include Deborah Turness, the former editor of ITV News, who now heads NBC News. What explains the cluster of Britons at the top of USfocused media organisations? One factor could be the British newspaper market, where many of these journalists and executives cut their teeth. Despite the challenges facing print titles around the world, the UK newspaper sector remains vibrant. Some 20 daily and Sunday newspapers continue to The companies reach millions of readers in Britain, as they have done for searching for decades. The phone-hacking this digital elixir scandal dented confidence in Fleet Street and drew the are betting that world’s attention to sloppy UK-born standards and practices and, in some cases, criminal journalists may behaviour. But competition have the answers is still fierce. UK journalism has in they need recent years looked beyond its borders for growth. Until now, that has not been as big a concern for newspapers and television networks based in the US. The Guardian and the Daily Mail each launched web operations tailored for global readers. Now both online titles are challenging the New York Times, CNN and Washington Post as the world’s most viewed news brands. They are also making their presence felt stateside: the Daily Mail’s online celebrity coverage regularly trumps its US tabloid competition while the Guardian this year won a Pulitzer Prize, the highest honour in American journalism, for its coverage of the Edward Snowden leaks. US-based news operations have belatedly realised that they too must look abroad. Last year the International Herald Tribune was rebranded by its owner, the New York Times, in one of Mr Thompson’s first moves as chief executive. The paper took the Times’ name as part of a move towards what the company called “a global monobrand”. More importantly, US news groups also realise that their future depends on a winning online strategy. The companies searching for this digital elixir are betting that UKborn journalists may have the answers they need: at the BBC, Mr Thompson launched the popular iPlayer — a success his board at the New York Times would no doubt love him to replicate. Mr Micklethwait, meanwhile, has won plaudits for the digital initiatives he introduced at the Economist, which is part owned by the Financial Times Group. Mr Bloomberg said his new hire had done “an exceptional job” leading the magazine into the “digital age”: the magazine has 1.6m print subscribers, including 164,000 digital-only subscribers. Maybe the trend won’t last and the British news invasion will end as soon as it began. I am not so sure. They may not turn out to be the news equivalent of The Beatles. But if the big US news operations are looking for a coherent digital strategy and international growth, they could clearly do a lot worse than recruiting across the Atlantic. [email protected]

Cars

Daimler puts €2.5bn in pension CHRIS BRYANT — FRANKFURT

Daimler is making a €2.5bn contribution to its company pension fund to reduce underfunding caused by low interest rates. “With this allocation to the German pension funds we want to give our employees more security for their future planning. At the same time we are investing in the future of the company,” Dieter Zetsche, chief executive, said. The announcement yesterday resolved analysts’ queries over what Daimler planned to do with its large cash pile, which stood at €17.9bn at the

end of September. Strong sales of Mercedes-Benz cars plus asset sales have lifted Daimler cash reserves more than 40 per cent compared with a year ago. The company’s coffers were swelled further in the fourth quarter by the sale of its 4 per cent stake in electric car company Tesla, which resulted in a €600m cash inflow. Daimler ruled out making large acquisitions when it reported third-quarter earnings in October. The top-up underscores the difficulties that many companies are facing in meeting pension obligations in the current interest rate environment. Additional reporting by Josephine Cumbo

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FINANCIAL TIMES

COMPANIES

Risks high as Microsoft passes cloud milestone World’s biggest software company makes up for lost time with a business overhaul to take it beyond the PC era RICHARD WATERS — SAN FRANCISCO

Microsoft has just passed a milestone in its business overhaul for the cloud computing age. As this year closes, it has become the biggest seller of cloud services to business customers, vaulting past start-ups such as Salesforce.com and outpacing IBM and Oracle. While cloud services account for less than 5 per cent of revenues, the milestone is a sign that the world’s biggest software company is finally making headway as it looks beyond the PC era. But the risks are high. Microsoft’s years of dominance relied on tying much of the tech world to its Windows PC operating system. The business model built on Windows is now being picked apart — and the person doing the picking is none other than Satya Nadella, the company’s recently installed chief executive. “It’s not easy to let go of your proprietary roots,” says Rick Sherlund, software analyst at Nomura Securities. “We don’t know how much this will hurt yet. But he has to do it.” Wall Street has chosen to look on the bright side. After more than a decade stuck in a narrow range, Microsoft’s stock price has risen nearly 50 per cent in the 16 months since former chief executive Steve Ballmer announced he would step aside. As the company’s biggest individual shareholder Mr Ballmer — who was blamed by Microsoft’s board for missing out in the smartphone and tablet markets — has made more than $5bn from the bounce. To reinforce the shift from Windows and lay the foundation for a new Microsoft, Mr Nadella has taken several steps to open up its technology: a strategy that once would have been perceived as heretical by company insiders. They include releasing a free version of Office, the company’s biggest moneyearner, to users of Apple’s iPad in order to prevent them defecting to rival services. Since retail consumers make up only a small part of the Office business and the software has largely missed the tablet revolution, giving the tablet software away was a mainly defensive gesture to protect a vulnerable flank. As such, it echoed Mr Nadella’s previous announcement that Windows would be free for smartphones — another market where the software was largely absent. But the symbolism is striking. In another reversal, Microsoft last month made a core piece of the technology on which its broader ecosystem is based available to other developers. Under Mr Nadella, it has negotiated integration deals with rival cloud companies including Salesforce and Dropbox. The goal is to stimulate greater use of Microsoft’s online services, even if that reduces demand for its other software. Mr Nadella is under pressure to show that he can back up moves like these, which are bringing an end to the closed technology world Microsoft once inhabited, with some real product innovation. Stepping away from the safety of its eroding PC monopoly is forcing deeper cultural change as the company faces up to demands of competing head-on with the likes of Google, Apple and Amazon. Microsoft’s deepest inroads into the cloud have come with Office 365, the cloud-based version of the productivity software. “I’ve been impressed by how rapidly they’ve been able to change their business model since Satya took over,” says Brett Taylor, a former Facebook chief technology officer and head of Quip, one of several start-ups hoping to reinvent productivity software for the cloud and mobile era. But rivals like Mr Taylor argue that even offering Office for free will not help Microsoft make up for lost time. The Office approach to productivity, which puts documents at the centre, does not suit the mobile workforce, he says. Instead, collaboration between workers

Silver lining

Reversal of fortunes Silverlight U-turn cuts the ties with Windows

Cloud services sales 2014 Microsoft

$5.6bn

Salesforce.com

$5.2bn

Revenues (% share)

Armed police surrounded the plants in the city of Dongguan as workers collected final pay this week, while suppliers demonstrated in front of the factories. Wintek declined to comment. The company sought insolvency protection in October, filing in Taiwan for a restructuring of more than NT30bn ($961m) in debts owed to local and mainland lenders and suppliers. Wintek

(estimate)

2012

2016 (forecast)

Office 365 and other cloud services

Consumer and devices*

Microsoft share price ($)

Phone hardware

6.2 Total revenue 43.7

$74bn

Rest of commercial licensing

39.8

15.1

50

Office 365 and other cloud services

45 40

9.2 Rest of commercial licensing

Total revenue

Consumer and devices*

$101bn 35.9

35 30

35.9

25 Jan

*ex phone hardware FT graphic. Sources: Nomura; Thomson Reuters Datastream

is being achieved using communicationbased tools that “push” information to people when they need it. Acquisitions intended to make Microsoft more relevant, like the Skype internet calling service and Yammer enterprise social network, have “sunk without a trace”, says Michael Cusumano, a professor at the Massachusetts Institute of Technology. Microsoft is also moving faster as it tries to overhaul its software, after years of being plagued with sluggish development. Changes to Office announced only months ago are already appearing in the product, says Rob Helm, an analyst at Directions on Microsoft, an independent research firm. “Someone’s really goosed it up,” he says. With new ideas like its experimental “Office social graph”, Microsoft is also

‘I’ve been impressed by how rapidly [Microsoft has] been able to change [its] business model’ trying to find ways to “identify relevant information and push it to you”, adds Mr Cusumano — for instance by automatically sending notes ahead of a meeting based on things like the subject matter and who will be present. Microsoft’s second push into the cloud involves creating a technology platform on which other services can run. While Mr Nadella was head of the company’s cloud business, he took a critical decision to extend this platform, repositioning it to compete with industry leader Amazon in selling things such as raw computing power and storage

capacity. This so-called “infrastructure as a service” business has been the scene of a vicious price war, as Google and Amazon have driven down prices. Mr Nadella, for his part, seems happy to go along for the ride, in the hope Microsoft will be one of only a few companies that can stay the distance. He suggests profits will be made in the “platform as a service” business that rides on top of the infrastructure. Wall Street’s fears that overall profit margins from the cloud would be far lower than the traditional software business have receded somewhat as the business has started to reach larger scale, says Mr Sherlund at Nomura. The shift to the cloud is likely to take years. Only about 2m of the 8m servers sold each year are bought by cloud companies, Mr Nadella says. The rest end up inside corporate data centres, many of them running Microsoft software. The company’s main advantage, he adds, will be having the scale and range of technologies to support the messy IT needs of modern corporations, which need to run a range of applications for workforces spread around the world using a mix of the cloud and traditional data centres. That predication suggests that Microsoft’s future looks much like IBM’s did at the end of the mainframe era. While the “post-PC” age has arrived, software for PCs and servers built with PC technology will remain a key ingredient of IT systems, just as mainframes are still estimated to account for more than a third of IBM’s profits. But even if this guarantees Microsoft’s longevity, its new CEO has made clear that he believes growth — and long-term relevance in the tech world — lies in a more decisive move to the cloud.

Apple supplier Wintek shuts China plants Taiwanese group Wintek, formerly a major supplier of touchscreens for Apple’s iPhone and iPad, has shuttered two plants in southern China and axed 7,000 jobs, leaving unpaid suppliers to chase debts of Rmb230m ($37m).

$4.7bn

Satya Nadella, Microsoft’s recently installed chief

Technology

CHARLES CLOVER — BEIJING

Four years ago, Microsoft’s decision to kill off its Silverlight technology highlighted a familiar “Windows first” dynamic inside the company. Silverlight had been developed to compete with Adobe’s Flash by enabling developers to write applications that run on any software platform, not just Windows. But a power battle in the company led to it being sidelined, said Jeffrey Hammond, an analyst at Forrester Research. “The Windows group killed [Silverlight] deader than a doornail,” he said. It was a notorious example of Microsoft’s “Windows tax”, the price

Amazon Web Services

reported a loss of NT$10bn for 2013 and a NT$3bn loss in the first half this year. The Taipei-listed company was once one of the main suppliers for Apple, but placed a bet that failed after Apple selected a rival touchscreen in late 2012. The episode represents a cautionary tale for high-tech manufacturers in southern China who aspire to being an official Apple supplier. While Wintek was the largest supplier of touchscreens for the iPhone 4, Apple switched to a different technology in 2012 for its iPhone 5, eliminating much of Apple’s need for Wintek’s technology. In 2013, Apple then opted for film touch panels in its iPads, rather than the glass touch panels made by Wintek.

Apple still lists a Wintek facility in Suzhou, near Shanghai, as a supplier, but not any of its Dongguan plants. Jerry Chen from Shenzhen Laibao Hitech, another touchscreen maker, said, such incidents are common “although it did come a bit suddenly with Wintek”. “It mostly has to do with the growing competition and lower margins. Before there used to be two to three companies sharing a single order and now there may be as many as 10,” he said. But he said the plant closures did not necessarily mean Wintek was obsolete, as it still made the leading technology in “on glass solution” (OGS) touchscreens. Wintek’s shares were suspended in mid-November at NT$1.83.

2013

2014

Dec

other divisions in the company have historically paid to protect the primacy of the operating system. Last month, under Satya Nadella, Microsoft effectively reversed the Silverlight move. It released a software framework called .Net — used by millions of developers who write applications that run on its software platforms — to the open source world, thereby cutting the inseparable bond with Windows. Retaining the loyalty of developers is essential to Microsoft. That could make the decision to set .Net free a key step in the shift to cloud computing, Mr Hammond said.

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Friday 12 December 2014

COMPANIES Industrial transport

Mobile & telecoms

Industry wins delay to EU truck shake-up

India sales ban poses threat to Xiaomi expansion

New rules spell end of road for environmentally inefficient vehicles ANDY SHARMAN — LONDON

European Union governments have agreed new rules that should bring an end to the brick-shaped trucks that campaign groups say are environmentally inefficient and endanger other road users. But fierce industry lobbying put back implementation of the measures by five years, including a three-year moratorium, despite the rules being voluntary.

Current regulations on truck weights and dimensions restrict the length of heavy goods vehicles. To maximise cargo space truckmakers design short cabins with drivers in towering cockpits over the engine and front axle. This creates dangerous blind spots and blunt front ends, critics say, increasing the risk of fatal accidents with pedestrians and cyclists. Trucks are twice as deadly as other vehicles in countries such as the UK, France and Sweden, according to the European Transport Safety Council, and heavy goods vehicles accounted for 14 per cent of all fatal collisions in Europe in 2011. The new rules will allow the front cab-

ins to be 80cm-90cm longer, bringing European trucks closer to their US counterparts — which have extended bonnets and tend to be about 1.5m longer. This should lead to curved, more Brick-shaped trucks have blind spots that increase the risk of fatal accidents, critics say

streamlined noses, which campaigners say would improve pedestrian protection and increase the driver’s field of view by 50 per cent.

The new rules will also allow for aerodynamic flaps at the rear of the vehicle, which are used in the US and guide airflow around the vehicle. While trucks make up only 3 per cent of vehicles in Europe, they account for 25 per cent of road transport carbon dioxide emissions, according to Transport & Environment, a think-tank. “This is a big thing that’s going to happen to trucks — it’s a fundamental change to an industry that’s fairly conservative,” said William Todts, senior policy officer at T&E. Brussels had planned to phase in the rules from 2017. But France and Sweden won a delay to 2022. The two countries

— home to truckmakers Renault and Volvo, which only recently launched new model ranges — had been seeking to delay the rules until 2025. Member states will meet later this month to formally approve the rules but finalisation of the legislation will not come until 2019, followed by the threeyear moratorium. Acea, the European automotive manufacturers’ trade body, said that while the industry was “fully committed to improving fuel efficiency and safety”, the three-year lead time — from finalising the rules in 2019 to implementation in 2022 — would still be “challenging” for truckmakers to meet.

Banks. Capital buffers

Fed’s push for safety tests the business model at US banks Drastic changes might be needed to earn equity returns that satisfy shareholders TOM BRAITHWAITE — NEW YORK

Jamie Dimon has long laid claim to a “fortress balance sheet”. Even before he ran JPMorgan Chase, as chief executive of Bank One in Chicago in 2002, he bragged about capital. “We talk consistently and all the time about this fortress balance sheet, and we really mean it,” he said later, after becoming chief of JPMorgan. “And we call it a strategic imperative, not just a philosophical position. “We are trying always to be very forward-looking and maintain a strong balance sheet,” he said. “We were getting this company’s balance sheet prepared for a tough time.” The tough time came, JPMorgan survived, albeit with the help of Federal Reserve emergency measures, and for a while Mr Dimon was lauded as the banker who got it right. But now JPMorgan has a $22bn capital shortfall, according to a new assessment by the Fed, which has been steadily ratcheting up its capital requirements since the financial crisis. The question for all US banks is whether the Fed’s drive for higher capital has further to run and whether they will have to change their business models drastically to earn a return on equity that satisfies shareholders. According to the banks — though not

all of the capital hawks — regulators, particularly in the US, have come a long way already in increasing the lossabsorbing capacity of the system. The international Basel II rules required banks to hold 2 per cent of common equity against risk-weighted assets. The new Basel III standard announced in 2010 requires a 7 per cent capital ratio by 2019. The tightening was more severe than that implies because the “risk weights”, which oblige banks to hold more capital against the riskiest assets, were also made tougher. In 2011, the institutions deemed most systemically important were told to go further — holding an additional 2.5 per cent in common equity. This week, the Fed announced that the biggest US institutions will have to hold even more common equity, taking JPMorgan to 11.5 per cent, Citigroup to 10.5 per cent and Morgan Stanley, Goldman Sachs and Bank of America to 9.5 per cent. There could still be more to come. The one known unknown, which the Fed has acknowledged as such, is whether banks will be forced to maintain these capital levels during annual stress tests, which subject balance sheets to a hypothetical economic disaster and see how they fare. If JPMorgan is expected to maintain an 11.5 per cent capital ratio during a financial crisis, then it will have to add even more to its peacetime levels. Banks which look to have already reached the new minimum levels might yet be caught short. It would also bring the US closer to the much higher levels of capital demanded by campaigners such as Sherrod Brown,

‘If they didn’t have the safety nets that they do . . . they couldn’t live’

the Democratic senator, Tom Hoenig, the vice-chairman of the Federal Deposit Insurance Corporation, and Anat Admati, the Stanford University professor and co-author of The Bankers’ New Clothes, a book demanding higher capital levels. The new rules raise questions about whether business models will have to change to adapt. Most banks are barely earning their cost of capital, estimated at 10-12 per cent; some, such as Citi and Morgan Stanley, are not even there yet. Adding more equity depresses ROE and makes it more challenging to satisfy investors. If banks become smaller and simpler they should benefit from a smaller capital requirement. But JPMorgan is not

The biggest US institutions will have to hold even more common equity, taking JPMorgan to 11.5 per cent Spencer Platt/Getty Images

willing to yield just yet. “We would clearly like to be able to reduce the surcharge,” said Marianne Lake, chief financial officer, on Wednesday. “And if that is possible, we will do it, but we are not looking to do that at the cost of making more than surgical changes to our business strategy.” Ms Admati said: “It’s a feature, not a bug, if they end up simplifying their structures under pressure from investors.” She argued that it is only the implicit backing of the government that allows banks to operate with so much debt in the first place. “Companies in this state of funding, with these kind of balance sheets, if they didn’t have the safety nets that they do . . . they couldn’t live.”

JAMES CRABTREE — MUMBAI CHARLES CLOVER — BEIJING

A patent dispute has dealt a blow to Xiaomi’s international expansion, leaving the fast-growing Chinese smartphone maker facing a temporary ban on sales in India and further pressure on margins. Xiaomi, anointed a valuation in excess of $40bn at its latest fundraising in November, is keen to replicate its popularity in China into other major emerging markets. In April it unveiled plans to expand into as many as 10 foreign markets. However, a Delhi High Court case suggests that this march abroad may also open it to more patent disputes, with companies demanding it pay royalties — something that rivals are less keen to pursue in China where claims are harder to press. Such payments would, in turn, eat into margins or drive up handset prices. In a ruling on a patent dispute with technology group Ericsson, the court ordered Xiaomi to suspend sales until February, pending a further hearing relating to its dispute with the Swedish company. Wednesday’s ruling stated that Xiaomi was “restrained from manufacturing, assembling, importing, selling or advertising” its products in India pending a further hearing, while India’s customs authorities were “directed not to allow the import” of mobiles and other products that may infringe Ericsson’s patents. Without a trove of its own patents, manufacturers such as Xiaomi could ultimately see their costs inflated by 5-20 per cent due to licensing fees, according to some experts. Xiaomi says it acquired 1,141 patents last year, a number considered unimpressive in the tech industry. Experts said this appeared to be the first patent litigation targeting Xiaomi since it outlined plans to launch into up to 10 foreign markets. “It looks like Xiaomi is experiencing a bit of culture shock in India,” said Wang Yanhui, secretary-general of the Mobile Phone China Alliance, an industry lobbying group. He said Xiaomi was not the first Chinese smartphone maker to be sued in India, however, it was the first time imports had been halted. The Delhi court ruling is likely to raise new concerns about possible intellectual property challenges affecting other Chinese smartphone and device makers — a group that includes Huawei, ZTE and Lenovo, analysts said. Manu Jain, head of Xiaomi in India, said the group had not received official notification of the ruling from the court, but that its legal team was “evaluating the situation”.

Technology

Momo dating app founder accused of stealing ideas CHARLES CLOVER — BEIJING

Chinese internet group Netease has accused a former employee, and now rival, of misconduct and corruption, just days before his new company is poised to launch a $230m initial public offering on Nasdaq. Netease, the gaming group that operates World of Warcraft in China, accused Tang Yan, chief executive and founder of dating app Momo, of stealing ideas and technology during his eight years at the company. In a move that could throw a spanner in Momo’s forthcoming IPO, New Yorklisted Netease, which has a market capitalisation of $13bn, claimed that Mr Tang “took advantage of his post to acquire various information and technological resources to help establish Momo”. Launched in 2011 while Mr Tang was still at Netease, Momo is a dating app similar to Tinder, and has become one of the hottest mobile phone apps in China. The app claims it has 180.3m registered accounts, 60.2m monthly active users, and 2.3m paying membership subscribers, according to the IPO filing as of September 2014. One of its investors is ecommerce group Alibaba, which has been trying without success to launch a smartphone chat and instant messenger to compete with WeChat, owned by rival Tencent. The timing of the statement by Netease appeared designed to delay or scupper the IPO — characteristics of the scorched earth tactics common in the competitive Chinese internet market. Mr Tang launched Momo in August

2011, a month before he left Netease, where he worked in a variety of management jobs. Netease also claimed Mr Tang awarded lucrative contracts to a company founded by his wife during that period. Mr Tang “delivered commercial benefits that are worth more than Rmb1m [$160m] to a Beijing advertising company founded by his wife, Zhang Sichuan — conduct that gave rise to suspicion of non-governmental corruption,” Netease said. In a filing to US securities regulators, Momo said Mr Tang would “vigorously defend himself” against the allegations,

$230m

180.3m

Forecast value of Momo’s initial public offering on Nasdaq

The number of registered accounts Momo says it has

but refused to comment further, citing a quiet period ahead of the IPO. The company did, however, say Mr Tang may address the Netease allegations in the US. Momo meaning “unacquainted” in Chinese, may face other legal challenges for the use of the name. Another Chinese company has said it intends to sue Momo. Hangzhou Momo Wedding Service Company, which describes itself as a web-based business aimed at Chinese parents trying to marry off their single offspring, said in November that the smartphone app had stolen its name. The company is seeking Rmb11m in damages and exclusive use of the brand.

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Friday 12 December 2014

COMPANIES Food & drug retailers

Pessina steps in as chief of Walgreens Boots Alliance Billionaire to take interim job as Wasson retirement reverses post-merger plans JOHN AGLIONBY — LONDON

Stefano Pessina, the billionaire executive chairman of Alliance Boots and a board member of Walgreens, will initially serve as interim chief executive when the two pharmacy chains merge but still plans to return to a strategy role. Boots declined to give new specifics but pointed to an earlier announcement that Mr Pessina, 73, will serve as executive vice-chairman of the combined USbased company. He will be responsible for strategy and dealmaking and chair a new board-level strategy committee. Ornella Barra, Mr Pessina’s long-term partner and chief executive of wholesale

and brands at Alliance Boots, is still set to become executive vice-president of Walgreens Boots Alliance, as the combined company will be known. Ms Barra will also serve as president and chief executive of global wholesale and international retail. Walgreens announced on Wednesday that Mr Pessina would temporarily head the combined group because Greg Wasson, Walgreens’ president and chief executive, plans to retire after the merger is completed. The move is a reversal of earlier plans to have Mr Wasson run the combined group. Walgreens will acquire the 55 per cent of Boots that it does not already own as early as February 2015 following a Walgreens shareholder vote on December 29. James Skinner, Walgreens chairman, will also take on executive duties during

Real estate

Qataris appoint ex-Lazard banker to Songbird board CLAER BARRETT, KATE ALLEN AND ARASH MASSOUDI

Ken Costa, the City grandee and former Lazard and UBS banker, has been appointed to the board of Songbird Estates to represent the Qatari sovereign wealth fund that is attempting to wrestle control of Canary Wharf. Songbird owns 70 per cent of Canary Wharf Group, while Canadian property investors Brookfield own 22 per cent. The Qataris have teamed up with Brookfield in an attempt to gain control of Songbird. The Qatar Investment Authority is Songbird’s biggest shareholder, with a 28.6 per cent stake. Other major shareholders include New York magnate Simon Glick, the China Investment Corp and Morgan Stanley. Songbird has a free float of 21 per cent of its shares. Songbird said yesterday that Mr Costa had been appointed as a board director with immediate effect, filling the vacancy left by Khalifa Al-Kuwari when he stepped down in September. Mr Costa was originally nominated for his directorship in early November at around the time when the QIA and Brookfield made their first approach to the board, according to two sources familiar with the situation. Their initial bid of 295p per share was rejected by Songbird’s board, which has three independent directors and three appointees each from Mr Glick and Morgan Stanley. Mr Costa’s appointment brings the number of board appointees nominated by Qatar Holding, the direct investment arm of the Qatar Investment Authority, back up to three. The QIA and Brook-

field last week made a final offer of 350p per share, valuing Songbird at £2.6bn. They now have support from shareholders representing 31.6 per cent of Songbird’s free float, having received letters of intent from EMS Capital, Madison International Realty and Third Avenue Management. However, they need one of the three major shareholders to sell out in order to win control. The bid has caused tensions between Songbird’s board members, who will have to continue to work together if the QIA/Brookfield bid is rejected. The board will produce a recommendation to shareholders once it has received the full offer document from QIA/Brookfield, sometime in the coming weeks. As a QIA representative, Mr Costa will be recused from board duty until the outcome of the takeover battle is known. The founder of Ken Costa Strategic, a company providing advice to international clients, South African-born Mr Costa was formerly chairman of Lazard International and chairman of Europe, Middle East and Africa at UBS. He has worked in the City of London for more than 30 years. A seasoned deal maker, Mr Costa brokered the £1.5bn deal to sell Harrods to the Qataris and later acted for the emirate when it acquired a majority stake in Aim-listed European Goldfields. More recently, Mr Costa teamed up with three former Goldman Sachs bankers to launch an ambitious $2bn emerging markets-focused private equity fund, but the group failed to reach its fundraising targets and was dismantled.

Mobile & telecoms

D Telekom prospectus ‘error’ JEEVAN VASAGAR — BERLIN

Thousands of small investors achieved a partial victory yesterday after Germany’s highest court ruled Deutsche Telekom had misled potential shareholders over its flotation prospectus. The initial public offering at the turn of the century was a pivotal moment in Germany, transforming normally cautious investors into enthusiastic buyers of a stock marketed as the “Volksaktie” — “the people’s share”. But after the IPO, Deutsche Telekom announced a writedown on its property portfolio, prompting a slump in the share price. About 17,000 retail investors are suing Deutsche Telekom, alleging flaws in the 2000 prospectus. Germany’s Federal Court of Justice ruled partially in the investors’ favour yesterday. The court said that it “affirms an error in the prospectus in relation to the internal transfer of shares held in the US telecoms company Sprint”. Lawyers for the investors, who are seeking €80m in compensation, welcomed the decision, saying it paved the way for damages. The former state monopoly was partially privatised in three capital issues in the 1990s and 2000. In the final raising of capital, 200m shares were sold at €66.50, raising €13bn in total proceeds. Before the final capital issue, Deutsche Telekom booked a capital gain of €8.2bn for the sale of its stake in Sprint.

The court’s statement said this was “objectively false”, as the shares were not sold but transferred to a Deutsche Telekom subsidiary. The prospectus should have explained that Deutsche Telekom continued to bear the risk of a fall in the price of Sprint shares, the court said. “Even an informed investor could not have deduced the ownership of the stake in 1999, and the accompanying risks,” the court statement said. The court accepted the decision of a lower court, which found that Deutsche Telekom had not overvalued its property portfolio in its IPO prospectus. The Federal Court of Justice referred the case back to a regional court in Frankfurt to rule on “causation and culpability”. The lower court will rule on any damages. Andreas Tilp, a lawyer for the investors, said the ruling was a “historic victory” for German investors. Deutsche Telekom expressed “regret” at the finding, adding that it was “confident the courts will determine that there is no liability for damages”. Shares in Deutsche Telekom closed up 1 per cent at €13.04 in Frankfurt. Combined with the bursting of the dotcom bubble, the Deutsche Telekom experience reinforced ordinary Germans’ reluctance to invest in equities. More recent IPOs in Germany, such as that of online fashion retailer Zalando, have been dominated by institutional investors.

Stefano Pessina, below, one of the architects of the deal, will take the helm after the pharmacy chains merge while the search starts for a permanent chief — Daniel Acker /Bloomberg,

the search for a permanent chief executive. The combined company will have 11,000 stores in 10 countries and a drug distribution business in 20 countries. Mr Pessina, who is one of the architects of the deal, said: “I look forward to working with James Skinner and all the leaders of the future enterprise when we launch the combined group.” It is not the first time Mr Pessina, who

is the largest shareholder in Alliance Boots and will own about 20 per cent of the combined company, has stepped into a management role. In 2011, after Andy Hornby resigned suddenly as Alliance Boots’ chief executive, the Italian entrepreneur took over running the company until a replacement was found. Walgreens bought 45 per cent of Boots

for $6.7bn in 2012, four years after Mr Pessina and private equity group KKR bought the UK’s largest pharmacy chain by number of stores, then Europe’s biggest buyout. The £10bn transaction contained an option for the US company to acquire the remaining portion three years later. Mr Pessina made about £500m from the original acquisition of Boots. Alli-

ance Boots is now domiciled in Bern, Switzerland. However, he and KKR did not take a dividend while it was in their ownership. Mr Pessina took shares from the first phase of the Walgreens deal, giving him an 8 per cent stake worth about $4.5bn. The second phase will see the value of his 20 per cent holding swell to about $13bn at the current share price. He originally invested $2.5bn.

★

Friday 12 December 2014

21

FINANCIAL TIMES

COMPANIES

Travel & leisure. Motorsport

Ecclestone vows to maintain iron grip on Formula One Chief executive fights against proposal to reduce his influence over the series ROGER BLITZ — LONDON

Bernie Ecclestone came out fighting against plans to clip his wings as Formula One chief executive and made clear he had no intention of relinquishing his power any time soon. “I run the company as if it belonged to me,” said a defiant Mr Ecclestone, now embroiled in a power struggle with F1’s major shareholder, private equity group CVC Capital Partners. The man who has run F1 for more than 30 years is resisting a proposal from Donald Mackenzie, CVC cofounder, to install former Diageo boss Paul Walsh as chairman with executive duties. The proposal is part of an F1 succession strategy devised by Mr Mackenzie that would gradually reduce Mr Ecclestone’s iron grip on the running of the motorsport series. Mr Ecclestone, 84,

summoned the media to the headquarters of Formula One Management in Knightsbridge to say it was by no means certain Mr Walsh would become chairman. Ahead of a planned meeting with Mr Walsh yesterday afternoon, Mr Ecclestone said of the proposal: “Donald’s directing it.” Asked about the idea of working alongside Mr Walsh, Mr Ecclestone said: “I don’t need to do anything with anybody. Fortunately enough, I’m over the retirement age, got a few dollars in the bank still, so not looking for a job. “I’m happy here as long as the board are happy with me. When I think I can’t deliver any longer, I shall retire.” He had not yet reached that moment, he added. F1 has for years been transfixed by the succession issue, and Mr Mackenzie’s proposal is CVC’s first genuine attempt to address it. He held several conversations in the latter part of the season with F1 team principals and investors, but held back until after the final Grand Prix before indicating he was ready to move. The proposal was due to be unveiled

F1 has been transfixed by the succession issue for years and Donald Mackenzie’s proposal is CVC’s first genuine attempt to address it — Alberto Saiz/AP at an F1 board meeting in Jersey on Monday. Mr Walsh would be nominated as successor to Nestlé chairman Peter Brabeck-Letmathe, who is having longterm medical treatment. But the board meeting did not even discuss the chairmanship. Mr Ecclestone’s clear opposition to the idea appears to have prompted Mr Mackenzie to hold fire. On suggestions that Mr Walsh would try to rein in Mr Ecclestone, the chief executive quipped: “He would be unique if he could do that.” Did he think Mr Walsh would try to rein him in? “Depends,” said Mr Ecclestone. “First he’s got to be appointed.” Mr Ecclestone did reiterate that he would like to bring a sponsorship expert into Formula One Management. But to the idea of gradually handing over responsibilities to Mr Walsh and others, he said: “Let’s have a look and see.” He added: “I‘ve got a little bit of experience. I’m in the good position that people trust me reliably. When I shake hands with them, they don’t need a contract, they know that it’s done, that’s the end of it. It takes an awful long time to get that sort of reputation. And whoever’s doing what I do would take a long time to achieve that.” Mr Walsh was “one of a number of people” suggested to become chairman and was not a shoo-in for the job, said Mr Ecclestone. Finding “a new Bernie” was a bit of a nonsense,

Thoughts of the day Ecclestone on . . . “It’s been difficult at certain stages of the year” — on 2014, a year which included his bribery trial in Germany (the trial ended when he agreed to pay $100m to settle the case). “It’s not easy taking your mind away when someone says you might get 10 years in prison” — on whether the job helped distract him from the trial. “Since people have been breaking my balls on this social media, I’ve been looking at this tweeting thing and I can’t see anything on there except

Pharmaceuticals

he said. “If I died now, there’s enough people in the company that could continue running the company in the way we’ve set things up.” If he controlled the board, he added, he would choose as his successor Sacha Woodward-Hill, his close aide and F1’s legal counsel. His objections to Mr Walsh appear to be related to the hands-on role Mr Mackenzie envisages for him. Mr Ecclestone did recognise that if CVC wanted “a sort of a front guy” to help steer F1 to the private equity group’s long-cherished hope of flotation, “the right person would come along. Maybe this Mr Walsh being the chairman would be the right person”. The problem for CVC, he added, was that F1 was “a bit unique to other companies they’ve bought”. Mr Ecclestone stirred more controversy by saying the financial problems affecting some of the sport’s weaker teams could be resolved by allowing teams to race in cars with the old formula V8 and V10 engines. He intends to propose the rule change at a summit of F1 teams next week. But it is bound to be opposed by the Fédération International de l’Automobile, the regulator, which was instrumental in changing the formula to the new hybrid turbo V6 engine. Defiant: Bernie Ecclestone shows no sign of letting go of F1 Laszlo Balogh/Reuters

[Mercedes team principal] Toto Wolff and one of my daughters. And I thought, what does it ever do? There’s a few idiots who put things on there. How does it ever help Formula One?” — on being criticised over comments disparaging social media. “Not really. He’s not sure” — on whether he and Donald Mackenzie argue about social media’s value to F1. “CVC keep talking about a public offering. When it gets closer, they think, is it such a good idea? It’s not on the agenda” — on floating F1. “My ex used to say I’ll die in a motorhome on the circuit”— on death.

.

Ebola vaccine trial suspended DAVID CROW — NEW YORK

The race to stem the spread of Ebola suffered a setback yesterday when researchers suspended a clinical trial of a new vaccine, and US officials said an American nurse with exposure to the disease would be admitted to a special treatment facility. The phase one study to assess the safety of the vaccine, which is being developed by Merck and NewLink Genetics, was stopped a week early after four out of 59 volunteers complained of pains in their hands and feet. “They are all fine and being monitored regularly by the medical team leading the study,” said a statement from the University of Geneva Hospital, where the trial is being conducted. It came as the US National Institutes

of Health said it expected to admit an American nurse — who was exposed to the virus while volunteering in Sierra Leone — to a special clinical unit in Maryland. If confirmed, the patient would become the fifth person to be diagnosed with Ebola in the US. Sierra Leone has overtaken Liberia as the country with the highest number of cases in west Africa, with 7,897 reported since the beginning of the outbreak. The National Institute of Health said it had “taken every precaution to ensure the safety of” its patients, its staff, and the public, to whom the situation posed a “minimal risk”. Swiss researchers said they planned to resume the trial of the vaccine — which was scheduled to run for another week — in January after checks to ensure the joint pain was “benign and temporary”.

22

★

FINANCIAL TIMES

Friday 12 December 2014

MARKET DATA WORLD MARKETS AT A GLANCE

FT.COM/MARKETSDATA

Change during previous day’s trading (%) S&P 500

Nasdaq Composite

1.44%

Dow Jones Ind

1.59%

FTSE 100

FTSE Eurofirst 300

-0.59%

1.26%

0.02%

Nikkei

Hang Seng

-0.89%

-0.90%

FTSE All World $

$ per €

$ per £

-0.322%

0.40%

0.064%

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

Nov 12 - Dec 11 S&P 500

All World

New York 2,055.25

2,039.68

Index

Nov 12 - Dec 11 S&P/TSX COMP

All World

Toronto

Month 0.80%

Year 13.98%

Nasdaq Composite

Day 1.33%

New York 4,758.34

4,660.56

Month -4.91%

Year 6.87%

IPC

Month 2.29%

Year 17.18%

Dow Jones Industrial

17,753.97

17,614.90 Day 1.26% Country

Month 0.75% Index

Year 11.10%

6,627.40 Day -0.59%

6,500.04 Year -0.49%

Month -2.29%

FTSE Eurofirst 300

Day 0.63%

Month -6.05%

Year -1.61%

Bovespa

1,357.43

1,343.41 Day 0.02%

São Paulo

Month 0.01%

Year 8.16%

CAC 40

Apple Facebook Class A Exxon Mobil Staples Microsoft Ebay Tesla Motors Bank Of America Gilead Sciences Citigroup

stock traded m's 19.8 11.5 8.1 8.1 6.4 6.2 5.9 5.3 5.1 4.8

close price 113.60 78.35 91.10 16.14 47.73 57.46 214.85 17.60 106.30 54.96

Day's change 1.65 2.17 2.43 1.33 0.83 2.19 5.01 0.22 1.46 0.49

Close price

Day's change

Day's chng%

33.02 16.14 35.53 62.73 74.82

3.01 1.33 2.71 3.34 3.77

53.46 42.99 23.59 32.75 81.44

-1.48 -0.78 -0.37 -0.41 -0.67

BIGGEST MOVERS Ups Urban Outfitters Staples Diamond Offshore Drilling Hospira Eli Lilly & Co. Downs Garmin Ltd Nielsen N.v. Freeport-mcmoran Allegheny Macerich

52,474.27 Day -0.39% Country

49,353.90 Year -1.43%

Month -5.95% Index

Dec 11

Dec 10

4,225.86

4,179.88 Day -0.05% Country

Month 0.07% Index

Year 3.29%

Cyprus Czech Republic Denmark Egypt Estonia Finland France

-1.00%

-1.04%

Frankfurt

Index

Nov 12 - Dec 11 Nikkei 225

All World

Month 5.27%

Year 8.65%

Ibex 35

Madrid

10,157.30 Month 1.55%

Year 10.53%

FTSE MIB

Day -1.49%

Hong Kong

Month -2.13%

Year -3.86%

FTSE Straits Times

Singapore 3,318.70

23,938.18

3,283.71

23,312.54 Day -0.90%

Milan

Seoul

1,916.59

Year 10.54%

Hang Seng

10,431.80

Day 0.34%

Month 2.84%

All World

1,967.27

17,257.40

Day -0.89%

Index

Nov 12 - Dec 11 Kospi

Tokyo

Month -1.82%

Year -1.82%

Shanghai Composite

Day -0.21%

Shanghai

Month 0.86%

Year 8.48%

BSE Sensex

Mumbai

19,201.07

18,702.24

28,008.90

2,494.48

Day -0.09%

Month -0.28%

Country

Index

Philippines Poland Portugal

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

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

Year 6.83% Dec 11

Dec 10

7072.10 52550.03 4920.60 2185.80 6742.43 1455.04 824.01 8393.92 3318.70 216.79 766.83 48110.52 40433.13 42438.05 1916.59 245.54 10431.80 7243.34 1454.45 468.34 9058.82 9013.07

7175.08 52477.44 4976.52 2208.35 6879.17 1486.85 855.05 8410.98 3325.81 217.49 783.34 48745.43 41775.93 43062.01 1945.56 249.35 10396.90 7254.28 1452.80 468.47 9020.83 9032.16

Day -0.49% Country Thailand Turkey UAE UK

USA

Venezuela Vietnam

Month 18.28% Index Bangkok SET BIST 100 Abu Dhabi General Index FT 30 FTSE 100 FTSE 4Good UK FTSE All Share FTSE techMARK 100 DJ Composite DJ Industrial DJ Transport DJ Utilities Nasdaq 100 Nasdaq Cmp NYSE Comp Russell 2000 S&P 500 Wilshire 5000 IBC VNI

Year 30.76% Dec 11

Dec 10

1526.81 84126.33 4368.31 2692.70 6461.70 5745.77 3470.90 3405.77 6408.94 17753.97 8989.90 607.05 4290.65 4758.34 10782.67 1161.86 2055.25 21534.07 3552.83 550.11

1559.56 84142.64 4582.91 2715.70 6500.04 5771.93 3491.02 3407.28 6322.83 17533.15 8858.34 597.46 4224.87 4684.03 10662.24 1188.06 2026.14 21244.73 3196.63 557.19

Day -0.82% Country

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

Cross-Border

27,602.01 Year 29.86%

Month -0.98% Dec 11

Dec 10

240.49 3159.11 826.78 5630.33 274.43 1357.43 2745.38 1335.80 1159.86 3288.90 1524.12 485.39 3939.58 4188.62 414.77 1698.43 1375.86 2317.58 1366.62 1389.93 1897.59 2991.96

238.21 3150.95 827.97 5595.68 273.33 1357.21 2743.38 1325.37 1177.43 3392.50 1545.21 483.03 3940.30 4179.32 420.22 1721.97 1381.03 2351.42 1363.95 1388.90 1888.07 2987.62

UK MARKET WINNERS AND LOSERS

LONDON ACTIVE STOCKS

stock traded m's Bp 200.6 National Grid 150.6 Rio Tinto 150.1 Glaxosmithkline 145.5 Bhp Billiton 131.7 British American Tobacco 131.2 Hsbc Holdings 128.0 Shire 126.5 Vodafone 115.3 Bg 113.4

close price 398.80 900.50 2748.00 1393.00 1361.00 3510.50 615.30 4565.00 222.95 843.70

Day's change 0.09 -3.88 -45.25 5.13 5.18 -72.50 -5.60 23.31 -0.52 -22.60

BIGGEST MOVERS

EURO MARKETS ACTIVE STOCKS Bbva Airbus Iberdrola Intesa Sanpaolo Repsol Telefonica Santander Bayer Ag Na Total Unicredit

Close price

Day's change

Day's chng%

10.03 8.94 8.26 5.62 5.30

Ups Spirent Communications Ocado Kier Tullett Prebon Laird

71.20 355.40 1470.00 255.30 311.20

5.05 21.40 47.50 7.80 8.00

7.63 6.41 3.34 3.15 2.64

Ups Inditex Technip Orange Alcatel-lucent Oci

-2.69 -1.78 -1.54 -1.24 -0.82

Downs Ferrexpo Bank Of Georgia Holdings Supergroup Enquest Soco Int

57.35 1949.00 835.00 35.80 243.40

-3.65 -110.00 -40.57 -1.81 -11.10

-5.98 -5.34 -4.89 -4.81 -4.36

Downs Piraeus Bank (cr) National Bank (cr) Alpha Bank (cr) Raiffeisen Bank Internat. Ag Airbus

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

0.543%

17,124.11

Day 0.64%

STOCK MARKET: BIGGEST MOVERS AMERICA ACTIVE STOCKS

-0.253%

Gold $

2,925.74

Dec 10

8279.04 5237.10 5259.00 3266.40 2234.50 3254.78 4816.62 49548.08 810.67 13852.95 651.98 18926.66 8443.67 9911.58 3079.85 282.87 2940.01 1517.81 1019.63 1444.01 1756.03

All World

9,210.96

Paris

20325.96 25227.94 19217.69 4321.52 17412.58 1184.07 1406.83 2145.04 5135.97 6562.71 420.97 455.07 1511.84 1765.52 41372.66 9808.60 416.71 633.74 5523.58 32932.41 594.67 31781.65

8526.47 5207.40 5231.00 3209.30 2208.31 3261.96 4841.88 49353.90 821.13 14037.33 655.75 18861.12 8319.71 9992.18 3064.69 286.74 2925.74 1531.51 1023.35 1444.01 1760.51

Index

Nov 12 - Dec 11 Xetra Dax

Europe

Dec 11

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

Dec 10

London

FTSE Italia All-Share 20298.27 CSE M&P Gen 85.01 83.33 Italy FTSE Italia Mid Cap 25116.96 PX 983.91 994.75 OMXC Copenahgen 20 755.98 759.34 FTSE MIB 19201.07 EGX 30 9404.17 9482.62 Japan 2nd Section 4322.82 OMX Tallinn 766.80 773.11 Nikkei 225 17257.40 Austria OMX Helsinki General 7801.12 7814.91 S&P Topix 150 1174.83 Belgium CAC 40 4225.86 4227.91 Topix 1397.04 Jordan Amman SE 2145.63 SBF 120 3317.59 3321.87 Brazil Germany M-DAX 16656.46 16644.10 Kenya NSE 20 5124.80 Canada Kuwait KSX Market Index 6463.76 TecDAX 1351.59 1348.20 XETRA Dax 9862.53 9799.73 Latvia OMX Riga 419.43 Chile Greece Athens Gen 827.98 893.71 Lithuania OMX Vilnius 457.89 Luxembourg LuxX 1509.23 China FTSE/ASE 20 266.34 288.53 Hong Kong Hang Seng 23312.54 23524.52 Malaysia FTSE Bursa KLCI 1744.57 HS China Enterprise 11255.43 11372.45 Mexico IPC 41634.74 HSCC Red Chip 4326.12 4368.08 Morocco MASI 9773.13 Hungary Bux 17463.68 17621.96 Netherlands AEX 416.77 India BSE Sensex 27602.01 27831.10 AEX All Share 633.37 S&P CNX 500 6744.95 6796.25 New Zealand NZX 50 5502.07 Indonesia Jakarta Comp 5152.70 5165.41 Nigeria SE All Share 32203.62 Colombia Ireland ISEQ Overall 5173.85 5147.95 Norway Oslo All Share 593.71 Croatia Israel Tel Aviv 100 13.14 13.10 Pakistan KSE 100 31779.75 (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. Argentina Australia

Dec 11

All World

44,300.83

New York

Oil Brent $ Sep

ASIA Index

Nov 12 - Dec 11 FTSE 100

Mexico City

41,634.74

Day 1.59%

£ per €

9,862.53

14,856.20 14,037.33

Day 1.44%

¥ per $

stock traded m's 597.3 555.7 512.4 471.8 445.9 390.5 384.5 367.7 364.9 356.6

close price 8.22 41.32 5.61 2.49 17.20 12.92 7.01 115.65 42.57 5.59

Day's change -0.02 -1.85 -0.03 0.00 -0.20 0.01 0.03 0.00 0.03 0.00

stock close traded m's price Toyota Motor 1059.2 7481.00 Softbank . 583.7 7311.00 Mitsubishi Ufj Fin,. 427.2 670.00 Mazda Motor 347.0 2969.00 Fuji Heavy Industries 331.6 4304.00 Sumitomo Mitsui Fin,. 320.7 4317.00 Sony 291.8 2464.00 Mizuho Fin,. 283.8 203.60 Japan Tobacco . 268.3 3550.00 Fast Retailing Co., 235.8 41910.00

Day's change -42.00 -110.00 -10.40 -20.50 29.00 -75.00 -40.00 -1.40 -75.50 -495.00

Close price

Day's change

Day's chng%

BIGGEST MOVERS

23.29 48.42 13.99 2.79 29.77

0.94 1.43 0.29 0.05 0.55

0.93 1.45 0.46 14.75 41.32

-0.15 -0.15 -0.03 -0.75 -1.85

BIGGEST MOVERS

Based on the constituents of the FTSE 350 index

TOKYO ACTIVE STOCKS

Close price

Day's change

Day's chng%

4.23 3.03 2.08 1.90 1.88

Ups Unitika Showa Denko K.k. Takashimaya , Sekisui House, All Nippon Airways Co.,

63.00 179.00 983.00 1551.50 300.40

2.00 4.00 19.00 27.00 4.40

3.28 2.29 1.97 1.77 1.49

-13.89 -9.38 -5.71 -4.84 -4.30

Downs Tokai Carbon Co., Nisshin Steel Holdings Co., Chugai Pharmaceutical Co., Kyowa Hakko Kirin Co., Nippon Steel & Sumitomo Metal

353.00 1121.00 3060.00 1212.00 302.30

-13.00 -36.00 -90.00 -34.00 -7.60

-3.55 -3.11 -2.86 -2.73 -2.45

Based on the constituents of the FTSEurofirst 300 Eurozone index

Based on the constituents of the Nikkei 225 index

Dec 11 price(p)

%Chg week

%Chg ytd

54.2 -13.5 -30.4 6.4 -0.1 5.9 10.9 11.0 -16.0 10.7 31.2 8.2

FTSE 250 Winners Ao World Ocado Card Factory Spirent Communications Victrex Fisher (james) & Sons Catlin Ltd Daejan Holdings Booker Dignity Debenhams Countrywide

283.20 355.40 264.00 71.20 1961.00 1154.00 586.50 5500.00 148.70 1820.00 73.65 453.20

13.9 7.7 7.4 6.5 5.7 5.5 5.0 4.5 4.2 4.1 4.0 3.9

-19.5 -31.4 6.8 -7.7 1.0 21.9 -8.5 26.4 0.9 -23.8

FTSE SmallCap Winners Sportech Boot (henry) Ashley (laura) Holdings Centaur Media Consort Medical Allied Minds Greggs Dialight Mountview Estates Sthree Kcom Mecom

-11.1 -40.8 -15.3 -34.5 -19.5 -5.7 -28.5 -55.7 -25.5 -21.0 -18.1 -25.0

Losers Afren Enquest Ophir Energy Lonmin Bank Of Georgia Holdings Premier Oil Vedanta Resources Nostrum Oil & Gas Soco Int Fenner Supergroup Ferrexpo

36.20 35.80 117.60 160.00 1949.00 168.90 619.00 509.00 243.40 211.70 835.00 57.35

-22.0 -21.7 -14.6 -12.6 -12.4 -12.2 -10.1 -9.8 -9.7 -9.6 -9.1 -8.9

-78.6 -73.4 -64.1 -48.1 -18.6 -46.1 -33.7 -38.4 -56.4 -44.2 -70.0

Losers Petropavlovsk Asia Resource Minerals Kenmare Resources Premier Foods Salamander Energy Hardy Oil & Gas Aquarius Platinum Ld Candover Investments Ite Aga Rangemaster Jpmorgan Russian Securities Arrow Global

FTSE 100 Winners Ashtead Arm Holdings Imi G4s Fresnillo Tui Travel St. James's Place Carnival Kingfisher Legal & General Astrazeneca Bt

Dec 11 price(p)

%Chg week

%Chg ytd

1172.00 959.00 1213.00 279.20 745.00 437.60 805.50 2789.00 322.20 246.60 4688.00 411.10

8.5 3.0 2.8 2.2 2.1 2.1 2.0 1.7 1.7 0.7 -0.2 -0.2

Losers Anglo American Petrofac Aberdeen Asset Management Bg Aggreko Glencore Smiths Tullow Oil Bhp Billiton Weir Bp Coca-cola Hbc Ag

1173.00 724.00 423.90 843.70 1445.00 294.85 1058.00 372.80 1361.00 1695.00 398.80 1328.00

-8.6 -8.5 -8.1 -8.0 -7.9 -7.8 -7.6 -7.4 -7.2 -6.4 -6.4 -6.2

Dec 11 price(p)

%Chg week

%Chg ytd

54.25 198.00 28.50 66.00 815.00 321.50 663.00 794.00 9960.00 307.75 89.50 141.00

10.7 8.8 7.1 6.0 5.8 5.8 5.7 4.5 4.4 4.3 4.1 3.7

-33.4 -1.0 16.5 12.8 -14.8 54.0 -7.2 43.8 -14.8 -8.7 62.5

Dec 11 Industry Sectors price(p) Winners Technology Hardware & Equip. 1155.48 Electronic & Electrical Equip. 3849.19 Chemicals 10954.58 Fixed Line Telecommunication 4667.30 Nonlife Insurance 1864.74 Mobile Telecommunications 5025.03 Industrial Transportation 2654.42 General Retailers 2869.03 Household Goods 12398.61 Support Services 6285.38 Industrial Engineering 8475.92 Equity Investment Instruments 7165.59

10.00 10.25 3.70 30.50 58.75 79.00 13.50 412.25 145.00 114.25 306.63 225.50

-39.4 -22.6 -17.8 -15.3 -15.2 -12.9 -11.5 -10.7 -9.5 -9.3 -9.1 -8.3

-86.3 -95.5 -82.2 -75.6 -47.4 5.3 -65.8 4.6 -52.8 -32.4 -43.5 -15.1

Losers Mining 13729.15 Oil Equipment & Services 16170.65 Oil & Gas Producers 6816.85 Industrial Metals 1334.60 Food & Drug Retailers 2587.25 Tobacco 40534.01 Aerospace & Defense 4557.71 Gas Water & Multiutilities 5978.84 Construction & Materials 3958.81 Software & Computer Services 1213.24 Automobiles & Parts 7848.89 Health Care Equip.& Services 6093.71

%Chg week

%Chg ytd

3.4 0.3 0.2 0.1 -0.2 -0.2 -0.3 -0.6 -0.7 -1.0 -1.1 -1.3

-8.0 -15.2 1.1 6.0 2.1 -8.7 -17.9 8.6 11.6 -3.3 -18.3 5.6

-7.0 -6.8 -6.0 -4.9 -4.8 -4.7 -4.1 -2.7 -2.6 -2.5 -2.5 -2.2

-16.1 -26.8 -17.0 -4.9 -41.3 11.6 -15.4 5.6 -7.9 3.6 -9.8 26.3

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

CURRENCIES Dec 11 Argentina Australia Bahrain Bolivia Brazil Canada Chile China Colombia Costa Rica Czech Republic Denmark Egypt Hong Kong Hungary India

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

DOLLAR Closing Mid 8.5550 1.2116 0.3770 6.9100 2.6498 1.1530 616.3050 6.1886 2427.5000 534.0350 22.2984 6.0066 7.1501 7.7512 248.7947 62.3300

Day's Change 0.0077 0.0434 0.0060 0.0100 0.0118 34.9000 0.0050 0.0582 0.0151 0.0001 1.6236 0.2900

EURO Closing Mid 10.5932 1.5003 0.4668 8.5563 3.2811 1.4276 763.1410 7.6630 3005.8572 661.2700 27.6110 7.4376 8.8536 9.5980 308.0706 77.1803

POUND Day's Closing Day's Change Mid Change -0.0291 13.4280 0.0023 0.0055 1.9018 0.0125 -0.0013 0.5917 0.0001 -0.0235 10.8460 0.0019 0.0449 4.1592 0.0689 0.0035 1.8097 0.0097 -2.0817 967.3599 0.1826 -0.0064 9.7137 0.0202 35.0849 3810.2351 55.4284 -1.8084 838.2280 0.1526 -0.0034 34.9998 0.0975 -0.0017 9.4280 0.0253 -0.0243 11.2228 0.0019 -0.0262 12.1665 0.0023 1.1705 390.5112 2.6153 0.1483 97.8339 0.4720

Dec 11 Indonesia Iran Israel Japan ..One Month ..Three Month ..One Year Kenya Kuwait Malaysia Mexico New Zealand Nigeria Norway Pakistan Peru

Currency Indonesian Rupiah Iranian Rial Israeli Shekel Japanese Yen

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

DOLLAR Closing Mid 12348.5000 9740.5000 3.9256 119.4300 119.4299 119.4299 119.4293 90.5450 0.2921 3.4890 14.6913 1.2826 180.7500 7.2770 100.6250 2.9675

Day's Change 12.0000 -0.0047 0.6450 0.6448 0.6447 0.6435 -0.1050 0.0005 0.0105 0.1850 -0.0120 0.7500 0.1068 -0.3200 0.0080

EURO POUND Closing Day's Closing Day's Mid Change Mid Change 15290.5666 -27.0518 19382.3617 22.1770 12061.1985 -33.0983 15288.8133 2.6409 4.8608 -0.0192 6.1616 -0.0063 147.8844 0.3951 187.4588 1.0446 147.8844 0.3949 187.4586 1.0443 147.8844 0.3949 187.4585 1.0439 147.8842 0.3946 187.4586 1.0428 112.1175 -0.4380 142.1205 -0.1402 0.3616 -0.0004 0.4584 0.0008 4.3203 0.0012 5.4764 0.0174 18.1915 0.1798 23.0596 0.2943 1.5882 -0.0193 2.0132 -0.0185 223.8141 0.3171 283.7074 1.2260 9.0108 0.1079 11.4221 0.1697 124.5991 -0.7392 157.9422 -0.4749 3.6745 -0.0001 4.6578 0.0134

Dec 11 Currency Philippines Philippine Peso Poland Polish Zloty Romania Romanian Leu Russia Russian Ruble Saudi Arabia Saudi Riyal Singapore Singapore Dollar South Africa South African Rand South Korean Won South Korea Sweden Swedish Krona Switzerland Swiss Franc Taiwan New Taiwan Dollar Thailand Thai Baht Tunisia Tunisian Dinar Turkey Turkish Lira United Arab Emirates UAE Dirham United Kingdom Pound Sterling

DOLLAR Closing Mid 44.4900 3.3731 3.5990 55.7033 3.7534 1.3155 11.6489 1100.8300 7.5546 0.9702 31.2035 32.8400 1.8566 2.2770 3.6731 0.6371

Day's Change -0.1700 0.0140 0.0186 0.9735 0.0009 0.0037 0.0648 -1.3700 0.0249 0.0013 -0.1125 0.0003 0.0121 -0.0001

EURO Closing Mid 55.0898 4.1767 4.4565 68.9747 4.6476 1.6289 14.4243 1363.1052 9.3545 1.2013 38.6378 40.6642 2.2989 2.8194 4.5482 0.7889

POUND Day's Closing Day's Change Mid Change -0.3622 69.8321 -0.2547 0.0059 5.2945 0.0229 0.0109 5.6490 0.0302 1.0195 87.4325 1.5428 -0.0116 5.8913 0.0024 0.0002 2.0648 0.0062 0.0409 18.2843 0.1049 -5.4414 1727.8764 -1.8518 0.0053 11.8578 0.0412 -0.0017 1.5228 0.0022 -0.1060 48.9774 0.0085 -0.2513 51.5461 -0.1677 -0.0059 2.9141 0.0010 0.0073 3.5739 0.0196 -0.0125 5.7653 0.0010 -0.0023 -

Dec 11 ..One Month ..Three Month ..One Year United States ..One Month ..Three Month ..One Year Venezuela Vietnam European Union ..One Month ..Three Month ..One Year

Currency

United States Dollar

Venezuelan Bolivar Fuerte Vietnamese Dong Euro

DOLLAR Closing Mid 0.6371 0.6370 0.6367 12.0000 21365.0000 0.8076 0.8076 0.8075 0.8070

Day's Change -0.0001 -0.0001 -0.0001 0.0022 0.0022 0.0022 0.0022

EURO POUND Closing Day's Closing Day's Mid Change Mid Change 0.7889 -0.0023 0.7888 -0.0023 0.7884 -0.0023 1.2383 -0.0034 1.5696 0.0003 1.2382 -0.3311 1.5696 0.0003 1.2382 -0.3311 1.5695 0.0003 1.2377 -0.3311 1.5693 0.0003 14.8590 -0.0408 18.8353 0.0033 26455.3064 -72.5664 33534.8779 5.8468 1.2676 0.0037 1.2676 0.0037 1.2675 0.0037 1.2671 0.0037

Rates are derived from WM/Reuters at 4pm (London time). Currency redenominated by 1000. Some values are rounded by the F.T. The exchange rates printed in this table are also available on the internet at http://www.FT.com/marketsdata

UK SERIES

FTSE ACTUARIES SHARE INDICES

www.ft.com/equities

Produced in conjunction with the Institute and Faculty of Actuaries

£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E Dec 11 chge% Index Dec 10 Dec 09 ago yield% Cover ratio FTSE 100 (100) 6461.70 -0.59 6383.02 6500.04 6529.47 6445.25 3.61 1.86 14.91 FTSE 250 (250) 15663.52 -0.47 15472.80 15737.52 15714.28 15211.54 2.68 2.08 17.97 16867.72 -0.50 16662.33 16952.92 16926.92 16513.06 2.73 2.21 16.59 FTSE 250 ex Inv Co (212) FTSE 350 (350) 3532.21 -0.57 3489.20 3552.49 3565.20 3508.70 3.46 1.88 15.32 FTSE 350 ex Investment Trusts (312) 3511.62 -0.58 3468.86 3532.02 3545.01 3493.71 3.49 1.90 15.13 FTSE 350 Higher Yield (96) 3450.05 -0.56 3408.04 3469.42 3492.94 3515.19 4.76 1.70 12.37 FTSE 350 Lower Yield (254) 3269.31 -0.58 3229.51 3288.54 3289.08 3157.45 2.08 2.34 20.55 FTSE SmallCap (292) 4294.37 -0.73 4242.08 4326.07 4318.18 4320.54 2.46 1.69 24.03 FTSE SmallCap ex Inv Co (152) 3720.05 -0.85 3674.75 3751.77 3748.86 3905.80 2.35 2.42 17.62 FTSE All-Share (642) 3470.90 -0.58 3428.63 3491.02 3502.88 3448.92 3.43 1.88 15.51 FTSE All-Share ex Inv Co (464) 3437.18 -0.58 3395.32 3457.31 3469.75 3422.68 3.47 1.90 15.17 FTSE All-Share ex Multinationals (577) 1114.62 -0.45 912.56 1119.66 1118.48 1098.72 2.92 2.04 16.74 FTSE Fledgling (97) 6768.01 -0.49 6685.60 6801.45 6779.09 6365.08 2.44 -0.68 -60.11 FTSE Fledgling ex Inv Co (53) 8419.72 -0.74 8317.20 8482.27 8416.70 7584.40 1.82 -3.93 -13.97 FTSE All-Small (389) 2969.47 -0.72 2933.31 2991.02 2985.35 2975.34 2.46 1.57 25.84 FTSE All-Small ex Inv Co Index (205) 2761.80 -0.84 2728.18 2785.23 2782.25 2872.00 2.33 2.21 19.48 FTSE AIM All-Share Index (841) 698.05 -0.75 689.55 703.36 706.86 823.58 1.16 2.28 37.82 FTSE Sector Indices Oil & Gas (22) 7219.01 Oil & Gas Producers (15) 6859.66 Oil Equipment Services & Distribution (7)16713.68 Basic Materials (31) 4562.09 11693.82 Chemicals (7) Forestry & Paper (1) 12541.02 Industrial Metals & Mining (2) 1381.42 Mining (21) 13144.27 Industrials (115) 4167.30 Construction & Materials (14) 4131.85 Aerospace & Defense (9) 4730.62 General Industrials (6) 3108.39 Electronic & Electrical Equipment (12) 4855.48 Industrial Engineering (14) 8852.22 Industrial Transportation (8) 3952.85 Support Services (52) 6189.66 Consumer Goods (38) 16105.01 Automobiles & Parts (1) 7889.11 Beverages (6) 14333.58 Food Producers (10) 8141.09 Household Goods & Home Construction (12)10351.08 Leisure Goods (2) 4996.20 Personal Goods (5) 21531.95 Tobacco (2) 40534.08 Health Care (19) 9363.33 Health Care Equipment & Services (9) 6189.53 Pharmaceuticals & Biotechnology (10)12826.65 Consumer Services (96) 4413.12 Food & Drug Retailers (7) 2700.60 General Retailers (30) 2782.06 Media (24) 6516.01 Travel & Leisure (35) 7639.35 Telecommunications (8) 3759.23 Fixed Line Telecommunications (6) 4735.21 Mobile Telecommunications (2) 5017.43 Utilities (8) 8686.55 Electricity (3) 9995.29 Gas Water & Multiutilities (5) 7901.65 Financials (283) 4611.92 Banks (7) 4329.31 Nonlife Insurance (12) 2139.17 Life Insurance/Assurance (12) 7656.01 Index- Real Estate Investment & Services (25) 2613.28 Real Estate Investment Trusts (20) 2710.49 General Financial (29) 7064.02 Equity Investment Instruments (178) 7451.05 Non Financials (359) 4012.48 Technology (22) 1195.75 Software & Computer Services (14) 1326.81 Technology Hardware & Equipment (8) 1471.03

-0.31 -0.33 0.14 -2.20 -0.35 -0.93 -4.10 -2.44 -0.89 -0.24 -1.74 -1.23 -0.59 -1.12 -0.25 -0.60 -0.88 0.21 -0.76 -1.44 -0.01 0.21 -0.54 -1.61 0.65 -0.53 0.76 -0.34 -1.28 0.39 -0.55 -0.27 0.11 0.19 0.07 -0.93 -0.89 -0.94 -0.59 -0.70 -0.97 -0.15 -0.88 -0.65 -0.98 -0.41 -0.57 0.20 0.10 0.27

7131.10 6776.14 16510.16 4506.54 11551.43 12388.31 1364.60 12984.22 4116.56 4081.54 4673.02 3070.54 4796.36 8744.43 3904.71 6114.29 15908.91 7793.05 14159.05 8041.96 10225.04 4935.36 21269.77 40040.52 9249.32 6114.16 12670.46 4359.38 2667.72 2748.18 6436.67 7546.34 3713.46 4677.55 4956.33 8580.78 9873.58 7805.44 4555.76 4276.60 2113.12 7562.78 2581.46 2677.49 6978.00 7360.32 3963.63 1181.19 1310.65 1453.12

7241.63 6882.27 16689.96 4664.72 11734.78 12658.55 1440.41 13472.79 4204.68 4141.75 4814.45 3147.19 4884.07 8952.46 3962.72 6227.06 16247.85 7872.66 14442.95 8260.31 10351.74 4985.65 21648.92 41199.44 9302.49 6222.63 12730.52 4428.04 2735.64 2771.11 6551.88 7660.41 3755.06 4726.46 5014.11 8768.20 10085.00 7976.91 4639.45 4359.74 2160.04 7667.19 2636.59 2728.34 7133.63 7482.08 4035.50 1193.36 1325.49 1467.04

7410.24 7042.87 17053.62 4726.16 11779.38 12305.95 1447.17 13682.58 4197.92 4162.33 4848.38 3105.11 4856.02 8998.80 3952.29 6190.68 16299.31 8025.41 14465.99 8231.16 10390.00 5109.98 21734.63 41370.23 9254.90 6278.98 12650.02 4417.28 2732.98 2768.10 6515.21 7652.98 3758.83 4706.43 5035.03 8773.28 10043.09 7992.71 4638.42 4373.19 2144.55 7649.85 2636.75 2718.97 7110.66 7467.69 4054.32 1188.60 1336.84 1448.15

8381.33 7927.37 22044.87 5054.69 11031.36 10631.07 1300.01 14931.26 4367.74 4177.49 5274.35 3454.55 5413.20 10101.55 4706.51 6084.23 14561.60 8387.32 13885.79 7030.51 8861.72 5789.79 20587.88 35119.74 8132.81 4788.43 11235.89 4420.37 4451.55 2582.23 6171.50 6736.77 3814.75 4324.15 5314.94 7816.80 8908.66 7129.58 4443.70 4591.19 2017.81 6549.89 2597.96 2218.12 6291.05 6990.57 4030.56 1143.66 1244.86 1424.99

4.68 1.76 4.69 1.75 4.24 1.97 3.98 2.79 2.20 2.43 3.03 3.19 0.72 14.83 4.24 2.79 2.64 2.07 3.72 0.34 2.29 4.02 3.62 1.86 2.33 2.12 2.68 2.34 3.86 1.48 2.42 1.77 3.04 1.86 2.41 3.62 2.40 1.93 1.96 1.83 2.46 2.47 4.28 1.09 3.10 2.65 4.18 1.30 3.62 1.25 1.44 2.46 3.80 1.21 2.80 2.02 5.94 2.08 2.35 2.41 2.92 1.49 1.97 2.35 4.11 2.53 2.80 1.90 4.89 2.74 4.91 1.24 4.99 0.69 4.89 1.40 3.16 1.78 3.43 1.18 3.12 1.44 3.33 1.84 1.80 5.52 3.05 5.83 3.09 1.88 2.45 1.04 3.52 1.91 1.38 2.04 2.09 1.96 0.89 2.17

X/D adj 231.29 407.73 449.07 121.04 121.27 162.52 69.19 101.99 88.68 117.84 118.11 31.59 171.15 159.77 70.72 65.06 8.57

Total Return 4876.06 10618.03 11656.28 5382.36 2754.53 5315.63 3388.18 5721.42 5208.28 5351.56 2741.18 1845.91 11915.11 14429.05 5081.04 4900.31 741.32

12.17 345.25 5744.64 12.18 329.40 5642.98 11.98 702.50 11787.04 9.00 178.82 4267.70 18.75 249.46 9859.54 10.36 379.57 12744.78 9.35 9.30 1195.62 8.45 551.27 6403.24 18.30 107.75 4037.02 79.02 156.30 4121.22 10.85 107.80 4780.93 14.86 111.44 3273.68 20.25 103.79 4196.28 15.92 238.29 10092.02 17.50 152.66 3198.65 23.42 143.69 6061.95 17.67 482.62 11001.93 11.44 190.35 7072.99 21.59 343.99 9504.82 27.80 230.52 6679.90 16.45 234.15 6870.22 21.40 205.93 4044.12 12.17 465.25 13495.09 18.46 1693.62 23593.58 22.08 341.77 6583.97 28.23 93.07 5169.59 21.68 489.33 7995.97 17.69 122.32 3888.64 8.10 158.56 3037.12 17.63 64.62 2976.21 23.02 187.38 3740.64 21.66 147.13 6806.31 9.65 144.07 3772.25 18.83 97.14 3955.99 7.45 245.60 4476.06 16.43 418.54 8809.81 29.07 500.46 12565.63 14.56 376.09 8061.56 17.77 145.58 3892.92 24.63 150.03 2866.82 22.28 67.47 3488.25 16.30 254.83 6787.91 10.07 49.28 6580.38 5.63 82.07 3110.42 17.19 218.14 7461.83 39.23 170.89 3815.58 14.85 139.51 5420.34 35.47 15.66 1473.65 24.51 26.11 1700.85 51.84 12.98 1673.84

8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Hourly movements FTSE 100 6498.06 6515.91 6497.96 6466.90 6444.52 6444.95 6456.97 6467.96 6469.26 6521.40 6441.44 FTSE 250 15712.44 15730.42 15687.35 15662.58 15626.96 15631.31 15658.17 15666.83 15664.39 15742.64 15617.63 FTSE SmallCap 4316.63 4315.67 4317.24 4313.80 4308.29 4305.71 4306.23 4305.93 4294.47 4318.02 4289.90 FTSE All-Share 3489.04 3497.43 3488.17 3473.66 3462.52 3462.79 3468.97 3474.09 3474.23 3499.92 3460.90 Time of FTSE 100 Day's high:08:40:15 Day's Low12:25:00 FTSE 100 2010/11 High: 6878.49(14/05/2014) Low: 6195.91(16/10/2014) Time of FTSE All-Share Day's high:08:56:00 Day's Low12:25:00 FTSE 100 2010/11 High: 3685.07(24/02/2014) Low: 3308.67(16/10/2014) Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown. For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS Issue price p 0.90 0.044 0.0675 0.006 -

Amount paid up -

Latest renun. date 2014-10-29 2014-10-31 2014-12-01 -

FT 30 INDEX

FTSE SECTORS: LEADERS & LAGGARDS

Dec 11 Dec 10 Dec 09 Dec 08 Dec 05 Yr Ago High Low Year to date percentage changes FT 30 2692.70 2715.70 2723.50 2788.40 2809.40 0.00 2856.60 2433.00 Health Care Eq & Srv 29.86 FT 30 Div Yield 1.87 1.86 1.85 1.81 1.80 0.00 3.93 2.74 Real Est Invest & Tr 21.22 P/E Ratio net 23.83 24.02 24.09 24.59 24.77 0.00 19.44 14.26 Tobacco 17.66 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Food Producers 15.11 FT 30 hourly changes Health Care 14.86 8 9 10 11 12 13 14 15 16 High Low Household Goods & Ho 13.85 2715.7 2717 2711.6 2700 2690 2690.4 2698.3 2701.1 2697.7 2719.9 2687.9 Pharmace & Biotech 13.82 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Electricity 12.72 Life Insurance 12.59 Travel & Leisure 10.23 Consumer Goods 10.13 Utilities 9.95 Dec 10 Dec 09 Mnth Ago Dec 11 Dec 10 Mnth Ago Gas Water & Multi 9.19 Australia 99.90 100.46 102.35 Sweden 81.03 81.31 81.50 Financial Services 9.17 Canada 101.17 101.58 101.99 Switzerland 147.21 147.36 146.65 General Retailers 8.43 Denmark 108.62 108.53 107.96 UK 87.36 87.26 87.66 Fixed Line Telecomms 7.83 Japan 122.80 122.53 126.64 USA 95.80 95.71 94.47 Equity Invest Instr 5.83 New Zealand 123.45 123.59 121.35 Euro 93.89 93.89 92.95 Norway 92.52 93.47 96.51 Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

FX: EFFECTIVE INDICES

Forestry & Paper Software & Comp Serv Personal Goods Nonlife Insurance Financials Media Beverages Chemicals FTSE 250 Index FTSE All{HY-}Share Index FTSE 100 Index Real Est Invest & Se NON FINANCIALS Index Consumer Services FTSE SmallCap Index Leisure Goods Support Services Industrial Metals &

High 21.68 0.42 6.00 0.40 515.50

Low 21.68 0.41 5.50 0.35 502.50

Stock Ceramic Fuel Cells Ltd Ferrum Crescent Ltd Plaza Centers NV Scotgold Resources Ltd UBM PLC

+or0.02 -0.875 -0.025 4.50

Telecommunications Construct & Material Technology Automobiles & Parts Banks Mobile Telecomms Industrials Tech Hardware & Eq Basic Materials Aerospace & Defense Mining Oil & Gas Producers Oil & Gas Industrial Eng Electronic & Elec Eq Industrial Transport Oil Equipment & Serv Food & Drug Retailer

-2.10 -2.72 -2.93 -4.45 -5.22 -5.72 -7.05 -8.41 -9.79 -10.28 -11.30 -12.09 -12.44 -14.20 -15.00 -16.20 -21.77 -36.00

FTSE GLOBAL EQUITY INDEX SERIES Dec 11 Regions & countries FTSE Global All Cap FTSE Global All Cap FTSE Global Large Cap FTSE Global Mid Cap FTSE Global Small Cap FTSE All-World FTSE World FTSE Global All Cap ex UNITED KINGDOM In FTSE Global All Cap ex USA FTSE Global All Cap ex JAPAN FTSE Developed FTSE Developed All Cap FTSE Developed Large Cap FTSE Developed Europe Large Cap FTSE Developed Europe Mid Cap FTSE Dev Europe Small Cap FTSE North America Large Cap FTSE North America Mid Cap FTSE North America Small Cap FTSE North America FTSE Developed ex North America FTSE Japan Large Cap FTSE Japan Mid Cap FTSE Global wi JAPAN Small Cap FTSE Japan FTSE Asia Pacific Large Cap ex Japan FTSE Asia Pacific Mid Cap ex Japan FTSE Asia Pacific Small Cap ex Japan FTSE Asia Pacific Ex Japan FTSE Emerging All Cap FTSE Emerging Large Cap FTSE Emerging Mid Cap FTSE Emerging Small Cap FTSE Emerging Europe FTSE Latin America All Cap FTSE Middle East and Africa All Cap FTSE Global wi UNITED KINGDOM All Cap In FTSE Global wi USA All Cap FTSE Europe All Cap FTSE Eurobloc All Cap FTSE RAFI All World 3000 FTSE RAFI US 1000 FTSE EDHEC-Risk Efficient All-World FTSE EDHEC-Risk Efficient Developed Europe

No of stocks 7535 6906 1349 1669 4517 3018 2540 7206 5554 6291 2113 5641 901 201 318 704 332 398 1496 730 1383 174 301 769 475 475 446 1319 921 1894 448 457 989 86 245 210 329 1981 1370 629 3030 1030 3018 519

US $ indices 466.55 479.12 415.33 608.90 639.73 273.33 483.03 477.79 449.38 479.72 435.73 456.22 405.24 360.27 503.14 688.79 437.60 659.70 668.39 293.49 236.24 308.92 423.72 466.04 126.21 614.28 802.07 532.29 484.15 688.94 652.91 862.12 709.06 341.73 897.72 752.47 357.17 499.85 405.13 377.12 5858.13 9089.11 316.49 281.75

Day % -1.3 -1.4 -1.3 -1.3 -1.5 -1.3 -1.3 -1.4 -0.9 -1.3 -1.4 -1.4 -1.3 -0.5 -0.3 0.0 -1.7 -1.9 -2.2 -1.7 -0.8 -2.0 -1.9 -1.1 -2.0 -0.3 -0.1 0.1 -0.2 -0.5 -0.6 -0.4 -0.1 -0.6 -2.3 -1.0 -0.3 -1.7 -0.4 -0.4 -1.3 -1.7 -1.1 -0.3

Mth % -1.3 -1.7 -1.3 -1.1 -1.9 -1.2 -1.2 -1.2 -1.8 -1.4 -1.0 -1.1 -1.0 -0.2 1.3 1.0 -0.9 -1.9 -2.5 -1.0 -0.8 -0.2 0.6 -0.4 -0.1 -3.1 -2.6 -3.1 -3.0 -3.8 -4.4 -2.3 -1.9 -8.9 -10.2 -5.3 -2.5 -0.8 -0.1 2.1 -1.7 -1.2 -0.6 0.8

YTD Total % retn 1.3 622.47 2.5 628.29 1.8 565.83 0.8 779.21 -1.3 795.07 1.6 384.49 1.6 912.40 2.1 629.16 -5.5 633.22 1.7 645.36 1.9 585.56 1.5 606.90 2.1 551.35 -7.4 548.92 -5.9 703.18 -8.1 938.45 8.8 562.90 5.5 800.28 1.4 788.56 8.3 387.28 -6.3 356.98 -5.0 378.48 -1.4 503.28 -2.6 570.48 -4.3 173.87 0.0 888.46 1.0 1124.48 -2.9 735.98 0.1 744.75 -1.4 953.73 -1.6 908.85 -1.0 1190.56 -0.8 947.57 -25.3 479.11 -15.8 1285.80 2.6 1090.45 -8.7 544.34 8.4 627.29 -7.8 599.84 -8.6 566.18 -0.9 7158.51 7.7 11202.07 4.7 415.80 -4.3 400.68

YTD Gr Div Dec 11 No of US $ Day Mth YTD Total YTD Gr Div % Yield Sectors stocks indices % % % retn % Yield 176 382.62 -2.7 -2.7 -19.4 563.23 -16.9 3.7 3.7 2.4 Oil & Gas 121 348.50 -2.6 -2.6 -19.5 521.45 -17.0 3.8 4.8 2.3 Oil & Gas Producers 46 395.81 -3.2 -3.2 -18.9 533.37 -16.9 3.4 4.4 2.5 Oil Equipment & Services 270 438.16 -1.3 -1.3 -10.3 622.98 -8.0 2.8 2.7 2.0 Basic Materials 115 625.70 -1.3 -1.3 -2.3 896.92 0.1 2.4 0.4 1.9 Chemicals 18 208.13 -0.3 -0.3 -1.4 324.23 1.7 2.9 4.1 2.4 Forestry & Paper 75 421.72 -2.1 -2.1 -16.8 600.46 -14.9 2.6 4.0 2.4 Industrial Metals & Mining 4.4 2.3 Mining 62 571.01 -1.1 -1.1 -22.5 800.92 -20.0 4.1 -2.8 2.9 Industrials 533 311.13 -1.5 -1.5 -1.6 422.59 0.5 2.1 4.2 2.4 Construction & Materials 114 425.79 -0.9 -0.9 -5.6 606.04 -3.6 2.2 4.3 2.4 Aerospace & Defense 28 490.19 -2.5 -2.5 -0.1 661.24 1.9 2.0 3.9 2.3 General Industrials 55 215.49 -1.0 -1.0 -4.0 312.49 -1.7 2.6 4.7 2.5 Electronic & Electrical Equipment 67 326.82 -1.7 -1.7 1.7 411.05 3.5 1.7 -4.2 3.4 Industrial Engineering 103 619.88 -1.9 -1.9 -6.7 826.92 -4.8 2.1 -3.6 2.6 Industrial Transportation 95 580.22 -1.6 -1.6 8.3 787.27 10.6 2.0 -6.0 2.4 Support Services 71 266.78 -0.9 -0.9 -1.6 349.39 0.6 2.1 11.1 2.1 Consumer Goods 405 406.94 -1.1 -1.1 1.5 564.00 3.9 2.4 7.2 1.7 Automobiles & Parts 97 391.56 -2.0 -2.0 -4.2 521.44 -2.0 2.2 2.7 1.6 Beverages 47 540.64 -0.6 -0.6 2.8 759.59 5.4 2.5 10.4 2.0 Food Producers 100 553.05 -0.8 -0.8 4.0 790.99 6.5 2.2 -3.5 2.9 Household Goods & Home Construction 45 390.77 -1.0 -1.0 6.4 539.37 9.2 2.4 -3.1 1.8 Leisure Goods 26 126.58 -1.5 -1.5 -1.1 159.63 0.1 1.1 0.1 1.4 Personal Goods 77 586.04 -0.5 -0.5 -2.7 780.06 -0.9 2.0 -1.0 1.6 Tobacco 13 1110.11 -0.9 -0.9 8.8 2063.53 13.0 4.1 160 442.56 -1.2 -1.2 19.1 604.71 21.4 1.8 -2.5 1.7 Health Care 3.0 3.0 Health Care Equipment & Services 58 584.16 -1.7 -1.7 20.8 662.46 22.1 1.1 3.6 2.6 Pharmaceuticals & Biotechnology 102 343.31 -1.0 -1.0 18.6 486.21 21.3 2.0 -0.4 2.7 Consumer Services 382 363.44 -1.0 -1.0 2.3 463.86 4.0 1.7 3.1 3.0 Food & Drug Retailers 56 288.80 -1.0 -1.0 1.8 383.24 4.0 2.1 1.4 3.0 General Retailers 119 463.38 -1.1 -1.1 1.7 578.26 3.4 1.6 1.3 3.1 Media 88 292.93 -1.0 -1.0 5.1 373.96 6.5 1.5 1.6 2.7 Travel & Leisure 119 352.40 -1.0 -1.0 -0.1 454.09 1.7 1.8 1.7 2.7 Telecommunication 95 168.18 -0.9 -0.9 -4.5 283.88 -0.6 4.2 -22.6 3.7 Fixed Line Telecommuniations 45 137.49 -0.9 -0.9 -0.5 252.49 4.1 4.8 -13.2 4.0 Mobile Telecommunications 50 182.93 -0.8 -0.8 -8.7 281.89 -5.4 3.4 161 264.75 -0.9 -0.9 8.1 466.65 12.3 3.7 5.5 2.7 Utilities 112 280.25 -0.8 -0.8 11.9 489.48 16.2 3.7 -5.6 3.5 Electricity 49 295.90 -0.9 -0.9 2.8 533.38 6.8 3.8 10.4 1.9 Gas Water & Multiutilities 658 215.89 -1.0 -1.0 1.9 325.56 4.8 2.7 -4.9 3.2 Financials 241 201.90 -1.1 -1.1 -2.2 323.31 0.9 3.1 -5.8 3.0 Banks 69 213.97 -0.8 -0.8 7.0 290.87 9.5 2.1 1.8 2.9 Nonlife Insurance 48 207.84 -1.0 -1.0 0.5 306.93 3.1 2.5 10.0 2.3 Life Insurance 136 231.43 -1.2 -1.2 6.5 301.98 8.4 1.7 6.9 2.2 Financial Services 178 170.42 -1.5 -1.5 15.0 199.75 16.9 1.6 -1.7 2.7 Technology Software & Computer Services 78 267.72 -1.4 -1.4 5.8 303.77 7.0 1.1 Technology Hardware & Equipment 100 139.10 -1.6 -1.6 23.6 166.74 26.3 1.9 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2, WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence.

UK COMPANY RESULTS closing Price p 21.68 0.42 5.50 0.40 515.50

5.35 5.06 3.15 3.11 2.76 2.07 1.88 1.80 0.42 -0.07 -0.09 -0.14 -1.04 -1.22 -1.43 -1.67 -1.89 -2.07

FTSE 100 SUMMARY

Company Abzena Darty Lowland Investment Co Marechale Capital Octopus VCT 3 Octopus VCT 4 Polar Capital Holdings Science in Sport Sports Direct International Sunrise Resources SuperGroup Titon Holdings Versarien

FTSE 100

Closing Day's Price Change FTSE 100

3i Group PLC Aberdeen Asset Management PLC Admiral Group PLC Aggreko PLC Anglo American PLC Antofagasta PLC ARM Holdings PLC Ashtead Group PLC Associated British Foods PLC AstraZeneca PLC Aviva PLC Babcock International Group PLC BAE Systems PLC Barclays PLC BG Group PLC BHP Billiton PLC BP PLC British American Tobacco PLC British Land Company PLC British Sky Broadcasting Group PLC BT Group PLC Bunzl PLC Burberry Group PLC Capita PLC Carnival PLC Centrica PLC Coca-Cola HBC AG Compass Group PLC CRH PLC Diageo PLC Direct Line Insurance Group PLC Dixons Carphone PLC easyJet PLC Experian PLC Fresnillo PLC Friends Life Group Ltd G4S PLC GKN PLC GlaxoSmithKline PLC Glencore PLC Hammerson PLC Hargreaves Lansdown PLC HSBC Holdings PLC IMI PLC Imperial Tobacco Group PLC InterContinental Hotels Group PLC International Consolidated Airlines Group SA Intertek Group PLC Intu Properties PLC ITV PLC Johnson Matthey PLC

434.90 423.90 1262 1445 1173 713.50 959.00 1172 3151 4688 487.10 1079 454.90 237.25 843.70 1361 398.80 3510.5 758.00 918.00 411.10 1760 1621 1029 2789 274.40 1328 1062 1491 1877.5 288.90 435.90 1668 1028 745.00 367.30 279.20 335.70 1393 294.85 604.00 953.00 615.30 1213 2789 2527 462.00 2220 335.00 208.30 3283

-14.20 -14.70 5.00 -5.00 -34.50 -13.00 -0.50 -3.00 -50.00 5.00 -6.40 -33.00 -6.10 -0.45 -28.70 -25.50 -0.80 -72.50 -2.00 1.00 -34.00 -24.00 -9.00 45.00 -3.50 -5.00 -13.00 -4.00 -25.50 -1.10 6.30 25.00 -6.00 -25.00 -4.80 0.80 0.70 7.00 -11.45 -2.00 4.00 -5.60 -16.00 -17.00 13.00 1.50 27.00 -2.80 -1.00 -22.00

Closing Day's Price Change

Kingfisher PLC Land Securities Group PLC Legal & General Group PLC Lloyds Banking Group PLC London Stock Exchange Group PLC Marks and Spencer Group PLC Meggitt PLC Mondi PLC Morrison (Wm) Supermarkets PLC National Grid PLC Next PLC Old Mutual PLC Pearson PLC Persimmon PLC Petrofac Ltd Prudential PLC Randgold Resources Ltd Reckitt Benckiser Group PLC Reed Elsevier PLC Rio Tinto PLC Rolls-Royce Holdings PLC Royal Bank Of Scotland Group PLC Royal Dutch Shell PLC (A) Royal Dutch Shell PLC (B) Royal Mail PLC RSA Insurance Group PLC SABMiller PLC Sage Group PLC Sainsbury (J) PLC Schroders PLC Severn Trent PLC Shire PLC Smith & Nephew PLC Smiths Group PLC Sports Direct International PLC SSE PLC St. James's Place PLC Standard Chartered PLC Standard Life PLC Tesco PLC Travis Perkins PLC TUI Travel PLC Tullow Oil PLC Unilever PLC United Utilities Group PLC Vodafone Group PLC Weir Group PLC Whitbread PLC Wolseley PLC WPP PLC

322.20 1146 246.60 78.20 2155 477.50 491.40 1067 174.80 900.50 6545 186.50 1170 1573 724.00 1501.5 4261 5150 1079 2748 831.50 382.90 2045 2102 397.90 437.00 3346.5 438.90 226.30 2643 1915 4565 1050 1058 666.00 1620 805.50 926.60 406.10 171.30 1786 437.60 372.80 2654 872.00 222.95 1695 4605 3608 1320

0.70 -13.00 5.30 -0.40 -43.00 2.50 -5.80 -10.00 -1.90 -6.50 75.00 -0.90 -14.00 14.00 7.00 -1.50 -110.00 5.00 -10.00 -49.50 -24.50 -2.90 10.00 3.50 -1.10 -6.20 6.00 1.50 -0.10 -23.00 -33.00 136.00 -5.00 -30.00 -9.00 -16.00 -9.50 -7.40 -2.40 -4.40 -25.00 -5.60 -6.70 -6.00 -10.00 0.30 2.00 36.00 -15.00 -6.00

UK STOCK MARKET TRADING DATA Dec 11 Dec 10 Dec 09 Dec 08 Dec 05 Yr Ago SEAQ Bargains 6341.00 6663.00 5958.00 5782.00 5782.00 5782.00 Order Book Turnover (m) 66.97 48.48 71.16 54.48 54.48 54.48 Order Book Bargains 801194.00 824852.00 548553.00 673098.00 673098.00 673098.00 Order Book Shares Traded (m) 1381.00 1674.00 1150.00 1351.00 1351.00 1351.00 Total Equity Turnover (£m) 3895.43 3390.39 3644.16 3644.16 3644.16 Total Mkt Bargains 937254.00 - 677613.00 805020.00 805020.00 805020.00 Total Shares Traded (m) 3671.00 2396.00 3536.00 3536.00 3536.00 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable. (c) Market closed.

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

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

UK RECENT EQUITY ISSUES Int Int Pre Int Pre Pre Int Int Int Pre Int Pre Int

Turnover 0.783 2.441 1588.4 1644.4 0.245 41.803 4.919 1432.898 208.2 19.256 2.479

0.434 31.646 3.997 1345.102 192.1 15.74 1.081

Pre-tax 2.63L 2.97L 8.6L 5.5L 87.301 19.741 0.019 0.046L 0.122 0.147 0.12 0.147 10.085 11.592 0.378L 0.78L 149.732 143.064 0.924L 0.7L 9.9 17.2 0.505 1.333 0.368L 0.296L

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

EPS(p) 7.047L 0.008L 39.4 0.08L 1.6 1.6 10.55 3L 19.4 0.17L 17.2 8.52 0.28L

2.5L 0.033L 36.7 0.04 1.3 1.3 9.53 2L 18.6 0.25L 2.6 2.87 0.52L

Div(p) 0.875 10 5 5 5.5 1.5 -

0.875 9 5 5 4 1 -

Pay day Apr 1 -

Total 3.5 19 5 5 26.5 2.5 -

3.5 17.5 5 5 15 2 -

Issue date 12/11 12/11 12/11 12/08 12/08 12/04 12/04 12/02 11/13 11/12 11/10 11/07 11/06 11/03

Issue price(p) 126.00 30.00 100.00 135.00 267.00 6.00 130.00 128.00 283.00 160.00 120.00 134.00 116.00 236.00

Sector

AIM AIM AIM AIM AIM AIM AIM AIM AIM AIM

Stock code

CHT MTPH PCGE TPOP CHOC VM/ MAB1 HAV FEVR QTX NKTN

Stock Focusrite PLC Management Resource Solutions PLC Quantum Pharma PLC Constellation Healthcare Technologies Inc Midatech Pharma PLC PCG Entertainment PLC People's Operator (The) PLC United Cacao Ltd SEZC Virgin Money Holdings (UK) PLC Mortgage Advice Bureau (Holdings) PLC Haversham Holdings PLC Fevertree Drinks PLC Quartix Holdings PLC Nektan PLC

§Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir For a full explanation of all the other symbols please refer to London Share Service notes.

Close price(p) 136.50 29.50 140.00 266.50 5.00 131.50 175.00 283.50 176.00 128.00 173.50 167.50 165.00

+/-2.50 -0.38 0.40 -6.25 0.50 1.00 0.00 2.50 -1.00 -7.50

High 139.00 31.90 0.00 285.00 6.70 145.00 207.50 291.00 178.38 130.00 184.00 181.50 252.00

Low 134.00 0.00 0.00 265.00 5.37 130.00 128.10 279.00 160.00 120.00 160.00 117.00 160.00

Mkt Cap (£m) 7927.2 968.1 7786.1 7407.2 5153.5 10138.5 3225.3 125193.8 8889.7 3205.3 19994.3 7820.9 3502.7

★

Friday 12 December 2014

23

FINANCIAL TIMES

MARKET DATA FT500: THE WORLD'S LARGEST COMPANIES Stock

52 Week High Low

Price Day Chg

Argentina ($a) YPF 300.50 3.50 Australia (A$) ANZ♦ 31.21 -0.28 BHPBilltn 29.00 -0.39 CmwBkAu 82.19 -0.16 CSL 85.76 1.06 NatAusBk♦ 32.09 -0.21 Telstra 5.69 0.07 Wesfarmers♦ 41.60 -0.13 Westpc♦ 32.24 -0.28 WoodsdPet 34.19 -0.71 Woolworths 29.99 0.11 Belgium (€) AnBshInBv 91.41 -0.30 Brazil (R$) Ambev 15.86 0.06 BncBrasil 24.37 0.44 BncoDoBrasl 31.67 0.02 Bradesco 34.69 0.28 Cielo 41.69 0.09 ItauHldFin 31.29 -0.42 Itausa♦ 9.51 -0.18 Petrobras 9.88 -0.23 SntnderBras♦ 7.00 -0.20 Vale 19.56 -0.37 Canada (C$) BCE♦ 51.98 0.48 BkMontrl 78.24 0.58 BkNvaS 64.78 0.67 Brookfield♦ 56.04 0.82 CanadPcR 203.47 1.59 CanImp 100.55 0.34 CanNatRs♦ 34.51 0.67 CanNatRy♦ 75.24 1.62 Enbridge 56.15 1.03 GtWesLif♦ 32.68 0.45 HuskyE♦ 22.50 0.48 ImpOil♦ 49.23 1.14 Manulife♦ 21.96 0.37 Potash 40.50 0.08 RylBkC 79.01 0.40 Suncor En♦ 32.94 0.53 ThmReut♦ 45.15 0.61 TntoDom 52.71 0.25 TrnCan 53.04 1.20 ValeantPh 161.55 3.08 China (HK$) AgricBkCh 3.71 -0.04 Bk China 4.10 -0.06 BkofComm 6.70 -0.11 ChConstBk 6.07 -0.04 ChinaCitic 5.79 -0.09 ChinaLife 27.00 -0.15 ChinaMBank 16.82 -0.10 ChinaMob 91.20 -0.55 ChinaPcIns 32.65 -0.90 ChMinsheng 9.06 -0.18 ChShenEgy 22.65 -0.10 ChUncHK 10.64 -0.02 In&CmBkCh 5.33 -0.03 IndstrlBk RMB 13.25 -0.07 Kweichow RMB 175.89 -4.03 PetroChina 8.07 -0.09 PingAnIns 73.70 0.60 SaicMotor RMB 22.47 -0.52 ShgPdgBk RMB 13.05 -0.11 Sinopec 6.10 -0.07 Denmark (kr) DanskeBk 168.40 0.80 MollerMrsk 11140 -510.00 NovoB 275.80 -0.40 Finland (€) Nokia 6.55 -0.05 SampoA 39.28 0.35 France (€) Airbus Grpe 41.32 -1.86 AirLiquide 98.97 -0.83 AXA 19.07 0.10 BNP Parib 49.45 -0.01 ChristianDior♦ 148.75 -1.40 Cred Agr 10.72 -0.08 Danone 55.41 -0.45 EDF 23.59 -0.20 Essilor Intl 89.25 -0.09 GDF Suez 19.45 -0.09 Kering 158.85 -1.30 LOreal 135.40 -0.70 LVMH 141.00 -0.10

Yld

P/E MCap m

561.00

275.00

35.07 39.79 83.92 88.66 36.00 5.80 46.69 35.99 44.23 38.92

28.84 28.40 72.14 63.77 31.50 4.92 40.33 30.00 33.72 29.45

5.72 4.43 4.89 1.42 6.27 5.26 4.86 5.67 6.34 4.76

94.64

69.14

1.81 21.40 181848.84

17.85 38.19 35.98 41.30 47.10 38.74 11.78 23.50 8.50 36.11

14.99 18.61 21.54 27.13 30.98 23.91 7.73 9.60 5.50 19.13

1.95 5.72 3.93 1.01 3.17 1.49 2.11 5.85 3.95 6.07

19.67 5.03 18.78 9.88 19.86 8.15 7.44 6.06 12.71 -9.82

94038.35 26353.01 23903.7 27539.87 24736.32 32709.81 8442.73 27749.79 10223.02 23748.29

54.24 85.71 74.93 58.08 247.56 107.37 49.57 86.00 65.13 33.98 37.31 57.96 23.09 41.82 83.87 47.18 46.50 58.20 63.86 170.45

44.75 67.04 59.92 39.51 155.02 85.03 33.42 57.07 43.24 28.61 21.67 44.99 18.91 32.35 67.65 31.90 36.86 47.23 46.10 111.97

4.68 3.95 3.96 1.33 0.69 3.93 2.53 1.28 2.43 3.76 5.33 1.06 2.48 3.86 3.61 2.85 3.25 3.50 3.58 -

17.50 11.82 11.41 12.11 32.37 12.75 12.04 21.10 62.61 12.56 10.90 10.05 10.17 22.76 13.13 15.89 81.49 12.70 22.07 97.85

37277.46 44021.48 68389.94 30520.81 30258.69 34614.34 32690.53 53275.57 41232.01 28307.14 19195.97 36191.77 35397.28 29141.39 98811.03 41861.46 31471.5 84312.8 32566.41 46739.75

3.95 4.35 7.13 6.42 6.17 28.80 17.84 102.20 37.25 9.66 24.95 14.22 5.69 14.27 186.62 11.70 77.30 24.30 14.16 8.23

3.04 3.03 4.53 4.89 3.60 19.72 12.12 63.65 23.55 6.73 19.12 9.03 4.33 8.60 118.01 7.31 55.60 12.22 8.39 5.73

5.89 5.84 4.74 6.04 5.38 1.22 4.51 3.32 1.35 1.37 4.42 1.87 5.40 3.05 2.18 4.94 1.13 4.69 4.44 4.38

5.42 14712.52 5.78 44232 6.30 30263.55 5.45 188270.8 5.44 11116.68 21.95 25919.92 5.97 9962.12 13.92 239966.27 23.86 11690.17 4.96 8104.24 8.99 9931.03 17.09 32838.47 5.59 59682.19 5.59 34641.05 12.90 32457.42 9.32 21966.49 13.68 35406.3 9.32 33558.03 5.44 31467.96 9.52 20078.31

171.20 15390 286.20

119.10 10770 189.70

1.17 14.16 28277.73 2.69 14.92 4076.13 1.16 28.42 22614.48

6.98 39.98

4.89 33.21

1.66 26.70 30351.09 4.15 14.39 27179.22

57.33 102.75 20.64 61.82 157.45 12.22 57.44 29.90 93.26 21.19 167.70 139.10 147.20

40.55 83.45 16.43 43.28 126.10 8.75 48.33 21.21 70.51 16.02 136.95 114.55 121.00

Stock

Orange 13.99 PernodRic 93.10 Safran 50.52 Sanofi 75.18 Schneider 61.59 SocGen 36.52 StGobn 32.96 Total SA 42.57 UnibailR 205.30 Vinci 44.24 Vivendi 20.29 Germany (€) Allianz 137.75 BASF 72.40 Bayer 115.80 BMW 90.31 Continental 172.65 Daimler 68.31 Deut Bank 25.56 Deut Tlkm 13.03 DeutsPost 26.78 E.ON 14.59 Fresenius 43.27 HenkelKgaA 79.87 Linde 151.75 MuenchRkv 164.40 RWE 28.08 SAP 57.09 Siemens 93.81 Volkswgn 182.40 Hong Kong (HK$) AIA 43.00 BOC Hold 26.20 ChngKong 132.80 Citic Ltd 13.58 Citic Secs 27.15 CNOOC 10.06 Galaxy Enter 47.00 HangSeng 127.30 HK Exc&Clr 177.10 Hutchison 90.50 SandsCh 40.10 SHK Props 113.70 Tencent 113.40 India (Rs) Bharti Airtel 343.30 HDFC Bk 933.60 Hind Unilevr 796.05 HsngDevFin 1092.6 ICICI Bk 347.95 Infosys 1921.05 ITC 396.60 OilNatGas 349.45 RelianceIn 906.15 SBI NewA 314.05 SunPhrmInds 834.80 Tata Cons 2492.15 Tata Motors 503.90 Wipro 546.30 Indonesia (Rp) Astra Int 7100 Bk Cent Asia 13275 Telekom Idn 2835 Israel (ILS) TevaPha 223.30 Italy (€) Enel 3.77 ENI 14.38 Generali 16.93 IntSPaolo 2.50 Luxottica 43.98 Tenaris 12.33 Unicred 5.65 Japan (¥) AstellasPh 1688.5 Bridgestne 4190 Canon 3807 CntJpRwy 16960 Denso 5649 EastJpRwy 8691 Fanuc 19850 FastRetail 41910 Fuji Heavy Ind 4304 Hitachi 898.60 HondaMtr 3568 JapanTob 3550 KDDI 7643 Keyence 53810 MitsbCp 2174 MitsubEst 2546.5

0.38 12.65 138135.52

1.79 2.62 4.31 3.00 1.59 3.23 2.66 5.38 1.07 7.83 2.40 1.87 2.23

11.83 71008.86 10.06 76872.12 15.00 109982.77 28.60 33604.12 14.32 62672.74 15.08 57414.49 27.86 38583.46 13.45 82729.35 12.26 23249.65 14.61 31263.22

19.73 40150.48 20.40 42247.37 9.06 57664.02 -60.93 76172.07 17.42 32862.86 13.04 34182.89 30.29 41142.04 12.24 54268.83 19.08 23255.89 -5.37 56830.4 23.38 24833.23 27.42 100808.59 20.75 88636.16

52 Week High Low

Price Day Chg

8.39 78.82 43.24 68.29 52.59 32.44 29.51 40.57 174.25 39.98 17.26

5.81 1.82 2.25 3.68 3.78 2.71 1.91 5.93 4.40 4.06 4.87

1.05 0.23 0.15 0.52 1.75 0.27 0.23 0.12 0.52 -0.18 0.18 -0.26 -0.30 1.60 -0.41 1.29 0.70 2.95

139.75 88.28 121.40 96.10 183.25 71.27 40.00 13.88 28.47 15.46 44.31 80.37 158.45 170.40 32.98 63.30 101.35 197.95

115.05 64.27 91.31 74.74 136.85 55.10 22.66 10.07 21.55 12.23 34.52 66.67 137.05 141.10 24.75 50.08 80.17 147.35

3.80 10.16 77950.13 3.68 13.57 82341.11 1.79 26.51 118575.71 2.84 10.29 67319.05 1.07 16.30 42758.13 3.25 9.86 90489.03 2.04-223.60 43638.63 2.84 25.75 73185.73 2.95 15.53 40105.73 4.06 -53.70 36137.88 0.71 21.72 28960.16 1.11 12.73 25693.6 1.95 25.13 34884.31 4.36 8.02 34656.21 2.60 -6.84 20015.18 1.27 21.01 86845.19 3.25 16.13 101814.31 1.62 12.48 66648.15

-0.90 -0.35 -2.60 -0.18 -2.05 -0.16 -0.90 0.30 -1.50 -0.50 -0.20 0.10 -2.10

45.65 27.95 152.00 16.88 33.95 15.88 84.50 133.00 189.00 113.50 68.00 120.20 134.90

34.65 21.50 111.80 9.35 13.72 9.82 42.95 117.60 112.80 90.00 38.70 83.40 91.80

0.93 3.54 2.41 2.37 0.68 5.18 3.97 1.84 2.33 3.96 2.70 0.21

29.17 66820.01 13.07 35737.05 7.76 39682.19 8.61 43630.13 30.88 4127.28 7.05 57946.15 19.29 25739.06 15.89 31398.5 48.77 26688.67 25.69 49777.16 17.20 41733.06 9.96 41409.16 39.71 137056.93

-10.00 420.00 2.20 965.90 -1.75 829.75 -7.45 1177.8 -4.10 366.05 -42.70 2201.1 1.60 400.00 -11.65 471.85 -26.40 1145.25 -1.90 326.95 1.50 932.50 -15.75 2839.7 -7.10 550.70 -5.85 621.90

281.90 616.80 537.20 755.00 188.72 1440 310.35 264.15 793.10 145.51 552.55 1995 332.10 474.70

0.98 0.72 1.42 1.25 2.58 1.66 1.30 2.74 1.02 0.93 0.29 1.29 0.38 1.43

34.53 26.51 44.43 21.22 17.55 18.72 36.39 11.48 11.69 14.89 91.53 23.22 8.54 16.35

8050 13575 3010

6050 9250 2025

2.54 14.33 23276.83 0.39 20.73 26239.83 2.37 19.50 23141.66

-0.50

230.70

135.60

2.09 18.25 54090.98

0.01 -0.09 0.08 0.01 -0.08 0.11 0.06

4.49 20.46 17.70 2.66 44.62 18.29 6.89

2.98 14.27 14.40 1.64 34.74 12.01 5.01

2.72 6.21 2.10 1.58 1.17 1.90 -

12.72 10.05 17.19 -9.59 36.64 11.96 -2.62

43896.85 64710.52 32637.68 49053.63 26220.82 18024.02 40561.46

-25.00 -33.50 14.50 220.00 -41.00 10.00 -265.00 -495.00 29.00 10.60 -42.00 -75.50 -75.00 610.00 4.00 -23.50

1842 4458.5 3931 17960 5995 9065 21440 45350 4617 939.90 4330 4193 7834 58000 2356 3160

1062 3328 2889 10655 4223 7105 16105 30950 2380 660.00 3239 2992 5000 36095 1767 2151.5

4.20 1.41 3.23 0.60 1.56 1.16 1.01 0.93 1.15 1.02 2.03 2.37 1.65 0.20 2.63 0.40

38.72 13.42 16.15 12.03 16.45 16.22 23.74 52.73 14.49 40.96 9.84 14.93 15.50 31.06 8.59 45.24

31949.36 28526.32 42515.59 29253.62 41816.16 28744.41 39807.76 37223.03 28212.8 36367.32 54116.86 59449.04 57401.77 27394.72 30098.98 29646.2

52 Week High Low

Price Day Chg

MitsubishiEle 1440 -24.50 Mitsui 1565 -33.50 MitsuiFud 3225.5 -75.50 MitUFJFin 670.00 -10.40 Mizuho Fin 203.60 -1.40 Murata Mfg 12860 -145.00 NipponTT 6330 -116.00 Nissan Mt 1087.5 -3.50 NpnStlSmMtl 302.30 -7.60 NTTDCMo 1859.5 8.50 Panasonic 1453 -27.00 Seven & I 4294.5 -57.00 ShnEtsuCh 8159 54.00 Softbank 7311 -110.00 SumitomoF 4317 -75.00 Takeda Ph 4943.5 -78.50 TokioMarine 3866 7.00 Toyota 7481 -42.00 Malaysia (RM) Maybank 8.87 -0.03 Mexico (Mex$) AmerMvl 15.88 0.33 FEMSA UBD 122.96 1.73 GrupoMexico 43.46 -0.21 WalMrtMex 29.00 0.12 Netherlands (€) ArcelorMit 9.13 -0.13 ASML Hld 86.99 -0.23 Heineken 60.48 -0.44 ING 11.21 -0.11 Philips 23.88 0.23 Unilever 32.64 0.04 Norway (Kr) DNB 113.60 -0.30 Statoil 123.60 1.10 Telenor 150.10 0.90 Qatar (QR) Inds Qatar 182.00 2.00 QatarNtBk 205.00 Russia (RUB) Gzprm neft 134.01 -2.08 Lukoil 2223.4 -72.60 Magnit 11000 -350.00 Novatek 424.70 -3.30 Nrlsk Nckl 9368 -160.00 Rosneft 208.00 -5.50 SbankR 65.95 -1.82 Surgnfgz 27.22 -1.09 Saudi Arabia (SR) AlRajhi Bk 54.50 0.94 SaudiBasic 81.75 -0.31 SaudiTelec 63.75 1.19 Singapore (S$) DBS 19.80 -0.20 Jard Str US$ 33.30 -0.38 JardnMt US$ 57.99 -0.41 OCBC 10.48 0.05 SingTel 3.98 0.05 UOB 24.55 -0.13 South Africa (R) MTN Grp 209.00 -5.56 Naspers N 1374.64 -14.37 Sasol 394.46 -7.50 South Korea (KRW) HyundaiMot 178000-2000.00 HyundMobis 243500-1500.00 KoreaElePwr 46000 -850.00 Naver 704000-7000.00 Posco 288500-4000.00 SK Hynix 47200-1650.00 SmsungEl 1305000-12000.00 Spain (€) BBVA 8.22 -0.02 BcoSantdr 7.01 0.03 CaixaBnk 4.32 -0.02 GasNatur 21.14 -0.17 Iberdrola♦ 5.62 -0.03 Inditex 23.30 0.95 Repsol 17.21 -0.20 Telefonica 12.92 0.01 Sweden (SKr) AtlasCpcoB 194.90 -1.00 Ericsson 92.70 -0.40 H&M 320.80 6.40 Investor 278.10 0.80 Nordea Bk 93.15 -0.60 SEB 98.95 -0.65 SvnskaHn 370.60 0.40 Swedbank 196.40 2.20

22016.8 35933.79 27620.96 27501.03 32301.11 35221.97 50605.39 47965.93 47018.61 37616.09 27739.57 78316.11 20588.19 21616.38

-50.00 -25.00 -

Week change change % 221.04 9789.3 3.25 13.6 1.90 9.2 33.35 9.2 0.87 7.0 11.06 6.7 0.13 5.6 3.73 5.5 2.79 5.1 6.42 4.6 0.29 4.5 0.72 4.5 3.15 4.5 4.48 4.4 1.94 4.2 3.11 4.1 2.57 4.0 4.50 4.0 0.22 3.8 0.47 3.7

Month change % -1.11 37.68 23.26 6.70 22.46 14.39 11.61 6.10 6.08 6.85 15.12 15.52 23.45 -1.60 10.15 4.95 15.71 9.47 6.68 23.70

INTEREST RATES: OFFICIAL Current 0.00-0.12 3.25 0.75 0.05 0.50 0.00-0.03 0.00-0.25

1550 1820 3830 700.30 240.00 13615 7120 1146.5 356.00 1934.5 1610 4592.5 8529 9320 5470 5140 4100 7873

1083 1307 2854.5 519.00 178.10 8192 5051 824.00 243.30 1515 1030 3611 5267 6655 3800 4337.5 2834 5205

10.20

8.83

17.64 135.75 49.59 35.75

12.39 108.90 36.77 27.71

Yld

P/E MCap m

0.40 3.46 0.57 2.26 2.89 0.85 2.39 2.43 1.39 2.72 0.81 1.44 1.03 0.46 2.44 3.06 1.68 1.97

24.91 25889.39 7.46 23541.36 33.13 26775.85 8.65 79485.6 11.75 41611.1 24.50 24255.96 12.20 60246.95 9.91 41164.5 10.93 24054.44 17.25 67962.13 61.41 29844.14 19.82 31874.95 28.06 29519.87 12.19 73499.35 7.57 51113.44 41.43 32689.83 11.94 24909.83 11.53 214100.63

9.17 11.85 23690.67 1.44 0.86 2.46 0.95 1.71 0.59 1.27 3.14

16.18 25.89 12.01 18.08

74988.39 29948.36 23029.74 34598.75

13.40 89.15 64.00 11.95 28.31 34.05

9.01 57.51 44.14 8.93 20.69 26.97

-15.40 18823.55 28.36 47117.45 25.31 43136.54 12.31 53531.29 32.53 27642.11 17.89 122255.38

126.90 195.80 158.20

98.10 120.80 123.90

1.96 7.82 25426.9 6.26 7.88 54159.23 5.12 31.20 31138.84

202.90 237.00

164.00 160.00

5.85 17.82 30238.37 3.31 14.28 39392.69

154.21 2593.8 12498 501.30 10035 259.00 102.92 31.68

114.00 1.49 56953.26 1715 5.53 33950.31 6565.3 1.70 16.82 18673.5 303.60 1.44 8.06 23149.8 4981 10.13 36.28 26613.23 204.30 8.44 2.75 39574.34 62.61 2.64 25557.87 24.13 2.73 1.74 17457.86

79.50 136.50 76.50

53.25 76.75 52.25

1.78 13.32 23595.59 6.52 10.02 65341.62 3.04 10.88 33969.66

20.03 38.10 64.60 10.53 4.08 24.70

15.65 30.06 49.34 9.05 3.42 19.40

2.93 0.70 2.22 3.29 4.22 2.85

263.44 1603.97 652.99

190.01 983.25 390.00

254000 323500 50200 880000 363500 52400 1495000

149000 226000 31300 643000 268500 34800 1078000

0.87 0.70 0.17 0.08 2.51 0.89

4.41 35617.86 10.21 21132.53 10.03 26034.51 49.45 19055.25 20.72 22849.49 10.19 30704.94 8.02 155252.18

9.99 7.96 5.00 24.45 5.97 24.20 21.07 13.43

8.14 6.02 3.45 17.63 4.39 19.29 15.82 10.76

0.76 7.17 0.90 3.31 2.74 1.29 4.39 4.53

-56.74 62776.34 15.50 109250.21 46.73 30235.21 13.69 26188.5 16.88 43559.77 30.58 89900.08 17.99 27321.45 13.69 72808.29

204.30 95.15 322.70 284.30 101.00 100.60 372.80 199.80

154.80 75.05 261.00 203.50 80.25 77.10 287.20 164.50

2.86 3.28 3.03 2.04 4.27 4.10 3.15 5.22

19.89 21.68 26.77 4.03 12.60 12.10 15.58 12.96

7.50 12.84 14.61 9.83 17.47 11.74

37313.48 37299.41 40057.68 31744.38 48236.81 29885.53

4.23 14.25 33162.48 0.26 48.48 49266.11 4.61 8.24 22038.28

10067.2 36954.3 62026.25 16767.29 49845.52 28422.87 30008.61 24758.01

Last 0.12 3.25 0.75 0.15 0.50 0.03 0.00-0.75

Mnth Ago 0.00-0.25 3.25 0.75 0.05 0.50 0.00-0.10 0.00-0.25

Year Ago 0.00-0.25 3.25 0.75 0.5 0.50 0.00-0.10 0.00-0.25

Day 0.002 0.002 0.001

Change Week 0.005 -0.044 -0.001

Month 0.002 0.000 -0.002 -0.001 0.000 -0.002 0.000 0.000 0.000

One month 0.16080 0.01214 0.49819 -0.01100 0.07429 0.02200 0.50500 0.15000 -0.06500

Three month 0.23990 0.05857 0.55700 0.00400 0.11000 0.08300 0.57500 0.19000 0.02500

Six month 0.33770 0.14786 0.68113 0.05040 0.14514 0.17900 0.72500 0.26000 0.12500

One year 0.60260 0.29857 0.97775 0.15040 0.26757 0.32800

COMMODITIES Energy Price* Crude Oil† Dec 60.56 Brent Crude Oil‡ 64.58 RBOB Gasoline† Dec 1.64 Heating Oil† Dec 2.06 Natural Gas† Dec 3.73 Ethanol♦ Jan 1.69 Uranium Dec 37.75 Carbon Emissions Diesel Dec Unleaded Jan Base Metals (♠ LME 3 Months) Aluminium 1954.00 Alluminum Alloy 2040.00 Copper 6466.75 Lead 1999.00 Nickel 16242.00 Tin 20450.00 Zinc 2179.00 Precious Metals (PM London Fix) Gold 1216.25 Silver (US cents) 1698.00 Platinum 1230.00 Palladium 817.00 Bulk Commodities Iron Ore (Platts) 69.50 Iron Ore (The Steel Index) 68.80 GlobalCOAL RB Index 67.00 Baltic Dry Index 887.00

Day Week change change % change change % -7.50 -1.87 -42955.54 -99.1 -14.37 -1.03 -146125.36 -99.1 -5.56 -2.59 -21609.00 -99.0 -4.10 -1.16 -1446.15 -80.6 0.00 0.00 -75.00 -20.2 -1.86 -4.30 -6.85 -14.2 -72.60 -3.16 -349.60 -13.6 -1.09 -3.85 -4.05 -13.0 0.00 0.00 -1.32 -11.5 0.99 2.95 -4.34 -11.2 1.07 1.26 -10.54 -10.9 0.83 1.86 -5.57 -10.9 -0.37 -1.54 -2.84 -10.7 0.00 0.00 -3.89 -10.7 -0.31 -0.38 -9.75 -10.7 -3.30 -0.77 -50.20 -10.6 -350.00 -3.08 -1299.00 -10.6 0.00 0.00 -3.90 -10.3 0.00 0.00 -2.71 -10.2 0.44 1.66 -2.97 -10.0

Month change % -27.35 -1.83 -9.13 4.36 -30.27 -15.07 3.90 -4.96 -26.69 -37.05 -8.92 -17.36 -17.11 -16.31 -13.26 -4.58 -6.38 -16.15 -1.18 -18.91

www.ft.com/commodities

Change -0.61 0.07 -0.01 0.00 0.03 0.00 0.00 -7.75 30.00 49.75 -13.00 -108.00 128.00 -5.00 -12.75 -8.00 -14.00 8.00 0.00 -0.10 0.75 -24.00

Agricultural & Cattle Futures Corn♦ Wheat♦ Soybeans♦ Soybeans meal♦ Cocoa (ICE Liffe)X Cocoa (ICE US)♥ Coffee(Robusta)X Coffee (Arabica)♥ White SugarX Sugar 11♥ Cotton♥ Orange Juice♥ Palm Oil♣ Live Cattle♣ Feeder Cattle♣ Lean Hogs♣

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

Mar Jan Jan Dec Jan Feb

Price* 395.25 576.00 1035.25 370.30 1882.00 2898.00 1938.00 177.30 428.20 15.45 60.19 149.30 625.00 162.35 231.58 84.35

Change 1.50 -5.75 3.00 1.30 -56.00 -28.00 -37.00 -1.20 -0.02 0.59 1.25 14.25 -0.05 -1.23 -0.08

Dec 10 456.77 110.80 247.54 2925.79 337.80 17.24 6.65 0.03 1326.00

% Chg Month -4.85 -1.19 -7.82 -10.95 -7.41 -6.34 -66.67 -5.82

% Chg Year -12.04 -23.84 -15.70 15.85 -75.00 -21.77

Mar Mar Jan Jan Mar Mar Jan Mar

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

Price Day Chg

52 Week High Low

TeliaSonera 52.10 0.25 53.85 43.98 Volvo 83.60 -0.85 105.70 71.00 Switzerland (SFr) ABB 20.60 -0.05 24.80 18.56 CredSuisse 25.46 0.01 30.21 23.12 Holcim 69.10 -0.20 86.05 59.50 Nestle 71.70 0.20 73.30 62.95 Novartis 92.10 0.35 94.25 67.45 Richemont 88.85 -0.20 94.75 72.65 Roche 292.90 3.60 295.80 231.20 SwatchGpI 453.10 -5.20 597.00 417.10 Swiss Re 83.70 0.75 86.55 69.25 Swisscom 578.50 8.50 587.50 447.60 Syngent 308.30 0.30 364.40 273.20 UBS 17.15 0.30 19.10 13.95 Zurich Fin 305.70 3.20 307.80 240.00 Taiwan (NT$) ChnghwTl 91.80 -0.30 99.00 86.20 HonHaiPrc 89.90 0.30 113.00 73.50 MediaTek 434.00 4.00 545.00 384.00 TaiwanPet 66.90 -0.60 85.30 66.70 TaiwanSem 134.50 -1.50 142.00 94.90 Thailand (THB) PTT Explor 333.00 -12.00 398.00 259.00 United Arab Emirates (Dhs) EmiratesTele 11.25 -0.05 12.60 11.10 United Kingdom (p) AngloAmer 1173 -34.50 1678.5 1161 AscBrFd♦ 3151 -50.00 3293 2237 AstraZen 4688 5.00 5750 3367.07 Aviva 487.10 -6.40 571.50 413.70 BAE Sys 454.90 -6.10 486.60 374.10 Barclays♦ 237.25 -0.45 298.13 201.75 BG 843.70 -28.70 1420 843.70 BP♦ 398.80 -0.80 526.80 398.05 BrAmTob 3510.5 -72.50 3806.5 2871 BSkyB 850.50 -12.00 954.00 782.50 BT 411.10 1.00 451.00 350.30 Centrica 274.40 -3.50 349.80 274.33 Compass 1062 -13.00 1115.63 924.41 Diageo 1877.5 -25.50 2043.5 950.00 GlaxoSmh♦ 1393 7.00 1709 1200.67 Glencore 294.85 -11.45 379.45 293.99 HSBC 615.30 -5.60 737.00 585.00 ImpTob 2789 -17.00 2973 2156 LlydsBkg 78.20 -0.40 86.87 70.02 Natl Grid♦ 900.50 -6.50 965.00 742.50 Prudential 1501.5 -1.50 1573.5 1192 RBS 382.90 -2.90 403.90 291.60 ReckittB 5150 5.00 5540 3235.75 Reed Els 1079 -10.00 1123 851.53 RioTinto 2748 -49.50 3680.56 2721.27 RollsRoyce♦ 831.50 -24.50 1294 777.00 RylDShlA♦ 2045 10.00 2864 1992.64 SABMill 3346.5 6.00 3857 2650.21 Shire 4565 136.00 5470 2687 SSE 1620 -16.00 1858 1296.72 StandCh 926.60 -7.40 1434 898.20 Tesco♦ 171.30 -4.40 341.58 155.40 Vodafone♦ 222.95 0.30 442.06 179.10 WPP 1320 -6.00 1565 1091 United States of America ($) 3M♦ 160.02 1.78 162.92 123.61 AbbottLb 44.94 0.57 46.10 35.65 Abbvie 67.93 0.35 70.76 45.50 Accenture 85.06 1.33 87.08 73.79 Ace 115.83 0.96 117.89 92.00 Actavis 264.77 5.96 272.75 156.40 Adobe 70.64 0.79 74.69 53.93 AEP 59.25 1.02 59.84 45.24 Aetna 89.11 1.44 91.25 64.68 Aflac 59.91 0.47 67.62 54.99 AirProd 144.08 2.07 147.53 102.73 Alexion 195.26 3.82 203.30 120.87 Allergan 211.79 1.69 214.66 95.47 Allstate♦ 69.56 1.01 69.57 49.18 Altria 50.51 0.52 51.55 33.80 Amazon 311.00 5.16 408.06 284.00 AmerAir 50.86 1.92 51.75 24.63 AmerExpr 94.10 1.35 96.24 78.41 AmerIntGrp♦ 55.87 1.03 56.56 46.80 Ameriprise 135.26 1.63 137.15 100.94 AmerTower 100.16 -0.01 105.20 75.65 Amgen 169.03 3.64 173.14 108.20 Anadarko♦ 76.64 1.01 113.51 73.60 Aon Cp 97.08 0.76 98.10 76.49 Apache 58.39 0.61 104.57 56.66 AppldMat 24.14 0.36 25.25 16.40 Apple 113.60 1.65 119.75 70.51 ArcherDan 51.73 0.46 53.91 37.92

Yld

P/E MCap m

4.09 16.17 29862.26 3.64 30.20 16054.92 2.70 1.89 1.96 2.81 0.10 2.67 1.08 4.89 2.43 2.13 1.42 5.89

20.62 48319.98 69.91 42010.37 18.87 23188.64 23.97 235730.9 23.84 229644.79 23.66 47806.73 23.39 212112.17 13.49 14403.55 7.57 29522.9 17.33 30889.47 19.64 29594.18 19.12 68469.12 11.77 47136.96

4.90 1.78 2.75 2.97 1.77

17.29 22822.25 11.52 42621.14 14.66 21857.08 22.28 20423.56 15.64 111767.18

2.13

9.82 28963.08

6.02 11.20 24215.32 4.22 257.35 25714.8 1.03 32.67 39155 3.72 93.14 92927.99 3.08 12.43 22537.47 4.42 78.59 22520.72 2.74 53.53 61371.8 2.20 16.07 45208.49 5.98 13.04 114167.57 4.06 18.33 93749.17 3.64 10.60 23005.52 2.41 16.77 52545.77 6.20 21.15 21399.26 2.40 40.54 27824.08 2.61 20.28 74077.01 5.74 16.26 106335.32 3.27 17.88 60902.33 4.87 11.95 185342.97 4.17 38.98 41898.08 - 237.69 87607.3 4.67 15.77 53170.08 2.24 18.02 60499.73 -6.73 38241 2.66 19.89 58085.24 2.28 23.32 35013.3 4.13 14.12 60983.65 2.65 6.88 24661.03 5.74 13.01 125505.65 1.93 24.14 84745.19 0.28 23.83 42274.9 5.35 78.41 25109.08 5.31 9.11 35937.25 8.62 16.23 21840.69 6.25 61.42 92766.32 2.59 17.55 27311.9 1.94 22.68 102543.83 1.72 36.28 67670.23 2.34 30.42 108230.52 2.07 21.18 67083.73 2.14 12.39 38425.16 - -51.46 70180.23 - 155.23 35230.91 3.27 16.71 28987.5 0.95 15.35 31339.99 2.39 9.70 26992.39 2.03 32.42 30836.3 84.01 38717.5 0.09 50.98 63092.67 1.52 11.61 29175.78 3.76 23.93 99821.62 - -688.36 143995.01 0.19 95.58 36480.1 1.01 17.95 97363.06 0.82 9.54 78213.1 1.57 18.51 24959.81 1.27 56.43 39709.72 1.32 27.47 128576.05 1.14 -18.78 38814.36 0.85 23.58 27681.07 1.49-261.16 21982.79 1.54 31.92 29412.04 1.54 18.18 666245.82 1.70 18.34 33392.79

Stock

52 Week High Low

Price Day Chg

AT&T 32.97 0.48 37.48 31.74 AutomData♦ 85.53 1.40 86.54 70.50 BakerHu 56.09 0.75 75.64 47.51 BankAm♦ 17.60 0.22 18.03 14.37 Baxter♦ 73.47 0.71 77.31 65.53 BB & T 38.49 0.39 41.04 34.36 BerkshHat 226557.72 2907.72 229374163038.88 Biogen 349.65 6.06 358.89 270.27 BkNYMeln 40.90 0.12 41.62 30.82 BlackRock♦ 358.78 1.76 368.64 284.78 Boeing 124.89 0.25 144.57 116.32 BrisMySq 60.45 1.17 61.20 46.30 CapOne 83.01 0.62 85.39 67.86 CardinalHlth 81.38 0.90 83.36 63.06 Carnival♦ 44.26 0.96 44.74 33.11 Caterpillar 93.92 0.90 111.46 84.84 CBS♦ 52.05 0.46 68.10 48.83 Celgene 118.13 2.49 119.84 66.85 Centurylink 38.92 0.52 45.67 27.93 CharlesSch 29.98 0.46 31.00 23.35 ChevrnTx 106.46 1.60 135.10 103.07 Cigna 103.40 1.00 105.60 73.47 Cisco 27.29 0.42 27.99 20.22 Citigroup 54.96 0.49 56.95 45.18 CME Grp♦ 89.12 0.09 89.99 66.44 CntnentlRes 34.52 0.99 80.91 33.00 Coca-Cola♦ 41.97 0.37 44.87 36.89 Cognizant 51.96 0.64 54.73 41.51 ColgtPlm 69.94 1.07 70.11 59.75 Comcast 56.33 0.76 57.49 47.74 ConocPhil 64.98 1.44 87.09 62.74 Corning♦ 21.54 0.39 22.37 16.55 Costco 141.67 1.42 146.82 109.50 Covidien 102.63 1.13 103.90 65.49 CrownCstl 76.94 -0.52 84.97 68.44 CSX♦ 35.50 0.51 37.99 25.84 Cummins 145.05 1.08 161.03 122.64 CVS 91.60 1.49 91.75 64.95 Danaher 84.71 1.57 85.24 70.12 Deere 88.04 0.52 94.89 78.88 Delta 48.36 2.14 48.55 26.40 DevonEngy 55.12 0.65 80.63 53.34 DirectTV 84.54 1.16 89.46 64.79 DiscFinServ 63.77 0.63 66.75 51.63 Disney♦ 92.29 1.81 94.50 68.80 DominRes♦ 73.73 1.85 74.59 63.06 DowChem 46.60 0.26 54.97 40.26 DukeEner♦ 83.45 1.20 83.90 67.05 DuPont♦ 72.27 1.04 73.53 59.35 Eaton 67.69 0.88 79.98 57.11 eBay 57.46 2.19 59.70 46.34 Ecolab 105.39 1.18 118.46 97.65 EMC 29.62 0.33 30.66 23.15 Emerson 61.82 0.37 70.66 57.76 EOG Res 89.55 2.76 118.89 78.01 Exelon 36.61 0.67 37.90 26.45 ExpScripts 84.32 0.62 85.72 64.64 ExxonMb 91.10 2.43 104.76 86.91 Facebook 78.35 2.17 81.16 49.01 Fedex♦ 178.31 1.85 183.51 128.17 FordMtr 15.25 0.09 18.12 13.26 Franklin 56.98 0.49 59.43 49.12 FreeportMc 23.59 -0.37 39.32 22.86 GenDyn 143.08 1.94 145.92 89.18 GenElectric 25.68 0.41 28.09 23.69 GenMills 52.39 0.40 55.64 46.70 GenMotors♦ 32.46 0.49 41.85 28.82 GileadSci 106.30 1.46 116.83 63.50 GoldmSchs♦ 194.86 2.86 198.06 151.65 Google 536.33 8.29 614.44 511.00 Halliburton♦ 38.77 0.65 74.33 37.84 HCA Hold 73.97 1.37 74.80 45.07 Hess 68.97 0.39 104.50 68.05 Hew-Pack♦ 38.56 1.20 39.65 26.29 HiltonWwde 26.50 0.51 26.53 20.55 HomeDep♦ 101.30 2.36 101.33 73.96 Honywell 98.38 0.88 100.16 82.89 IBM 162.25 1.74 199.21 159.80 IllinoisTool 95.69 1.08 97.79 76.25 Intel 37.19 0.77 37.90 23.50 Intuit 93.84 1.28 95.42 69.02 John&John 107.13 0.89 109.49 86.09 JohnsonCn♦ 47.40 0.60 52.50 38.60 JPMrgnCh 61.96 1.28 63.16 52.97 Kimb-Clark♦ 114.68 1.51 116.72 98.27 KinderM 39.97 0.53 42.49 30.81 Kraft 60.07 0.49 61.10 50.54 Kroger 62.00 0.64 62.39 35.13 LasVegasSd 55.86 1.34 88.28 53.98 LibertyGbl 49.39 0.71 90.93 37.98 Lilly (E) 74.82 3.77 75.10 48.88 Lockheed♦ 190.07 2.16 192.94 137.22

Bid yield

Mth's Spread chge vs yield US

Dec 11 High Yield US$ MGM Resorts Intl

S*

Ratings M*

F*

Bid price

01/17

7.63

B+

B3

BB

107.55

3.85

0.16

0.92

3.24

High Yield Euro Kazkommerts Intl BV

02/17

6.88

B

Caa1

B

87.00

-

0.00

0.00

-

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

03/15 05/16 01/17 01/18 03/19 07/19 11/19 02/20 03/23

6.63 8.38 6.00 8.00 7.13 6.38 7.50 11.75 3.25

BBB+ BBB+ BBBBBBBBB+ ABBB -

A3 A3 Baa2 Baa2 A3 A2 Baa3 Baa2 Baa3

BBB+ BBB+ BBB BBB BBB+ ABBBBBB BBB-

101.12 121.00 107.93 109.40 118.94 118.02 125.38 140.13 83.13

1.34 1.23 2.06 4.65 2.46 2.23 3.47 3.27 5.85

-0.02 0.00 0.07 0.13 0.08 -0.05 0.00 0.04 0.03

-0.09 0.00 0.19 0.09 0.27 0.03 0.00 0.30 0.21

0.73 0.62 1.45 3.02 0.84 0.61 1.85 1.64 3.64

Red date Coupon

Index

Month's change

Year change

Return 1 month

Return 1 year

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

180.73 289.69 250.59 211.82 219.08 280.34 254.03 289.84 223.62 280.56 216.59 214.01

0.19 0.30 0.19 0.03 0.32 0.44 0.47 0.30 0.14 0.40 0.22 0.12

-0.05 2.27 0.37 0.52 1.26 3.22 1.17 2.27 0.56 2.92 0.97 0.69

5.67 10.79 6.98 7.78 11.72 12.54 5.32 10.80 5.90 11.99 10.12 5.59

-0.32 2.01 0.37 0.72 1.72 2.77 0.58 1.99 0.56 2.52 1.32 0.69

4.90 9.87 6.98 7.40 11.09 11.14 4.64 9.78 5.90 10.71 9.53 5.59

Emerging Euro Brazil 02/15 7.38 BBBBaa2 BBB 111.75 0.73 0.00 0.00 0.12 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.88 Mexico 02/20 5.50 BBB+ BBB+ 111.09 3.14 -0.01 0.07 1.52 Bulgaria 09/25 5.75 BBBBBB- 123.13 3.20 0.00 -0.23 0.99 Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

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

113.48 109.63 952.94 113.78

0.14 0.02 -2.88 0.09

-

-

1.92 0.22 4.17 1.20

5.74 5.57 -3.14 8.78

Index

Day's change

Week's change

Month's change

Series high

Series low

336.86 60.13 70.58 62.36

-2.08 -0.05 6.17 -0.11

16.24 2.05 8.93 3.18

-2.40 -2.50 11.56 -1.61

419.37 80.45 79.33 85.99

307.60 55.18 58.50 56.40

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

Markit CDX Emerging Markets 5Y 350.75 21.28 59.37 72.39 350.75 238.47 Nth Amer High Yld 5Y 371.70 16.05 39.28 32.53 398.34 328.06 Nth Amer Inv Grade 5Y 68.13 3.27 6.65 3.79 73.81 60.32 Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 181.74 100.00 Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.

BONDS: INDEX-LINKED Price Month Value No of Yield Oct 12 Oct 12 Prev return stock Market stocks Can 4.25%' 21 129.04 0.073 0.044 -0.86 5.18 67072.77 7 Fr 2.25%' 20 115.02 -0.388 -0.449 -0.64 19.98 205582.98 14 Swe 0.25%' 22 105.03 -0.299 -0.305 -0.82 28.26 243931.09 6 UK 2.5%' 16 330.72 -1.405 -1.434 -0.22 7.90 476871.60 24 UK 2.5%' 24 347.52 -0.863 -0.893 -0.01 6.82 476871.60 24 UK 2%' 35 232.85 -0.733 -0.748 1.03 9.08 476871.60 24 US 0.625%' 21 102.30 0.272 0.285 -0.75 35.84 1069759.99 35 US 3.625%' 28 138.53 0.613 0.285 -0.08 16.78 1069759.99 35 Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par amount.

BONDS: TEN YEAR GOVT SPREADS Bid Yield

Spread Spread vs vs Bund T-Bonds

Australia 2.94 2.26 0.73 Italy Austria 0.85 0.17 -1.35 Japan Belgium 1.14 0.46 -1.07 Netherlands Canada 1.98 1.30 -0.23 Norway Denmark 0.96 0.28 -1.24 Portugal Finland 0.91 0.23 -1.30 Spain France 0.95 0.27 -1.26 Switzerland Germany 0.68 0.00 -1.53 United Kingdom Greece 9.21 8.52 7.00 United States Ireland 1.31 0.63 -0.90 Data provided by SIX Financial Information & Tullett Prebon Information

Bid Yield 2.06 0.38 0.82 1.65 2.97 1.87 0.36 1.91 2.21

Spread Spread vs vs Bund T-Bonds 1.38 -0.30 0.14 0.97 2.29 1.19 -0.32 1.23 1.53

-0.15 -1.83 -1.39 -0.56 0.76 -0.34 -1.84 -0.30 0.00

BONDS: BENCHMARK GOVERNMENT Red Bid Date Coupon Price 07/17 4.25 105.07 04/25 3.25 102.74 Austria 06/16 1.75 101.78 10/24 1.65 107.50 Belgium 12/17 1.00 102.11 12/24 1.10 99.63 Canada 11/16 1.00 100.01 06/25 2.25 102.55 Denmark 11/16 2.50 104.80 11/25 1.75 108.10 Finland 04/17 1.88 104.29 07/25 4.00 130.92 France 11/16 0.25 100.48 11/19 0.50 101.12 11/24 1.75 107.53 05/45 3.25 128.83 Germany 06/16 0.25 100.41 10/19 0.25 100.75 08/24 1.00 102.98 07/44 2.50 124.26 Greece 07/17 3.38 84.85 02/25 2.00 62.67 Ireland 10/17 5.50 114.90 03/24 3.40 118.08 Italy 12/16 1.50 101.78 12/19 1.05 99.64 12/24 2.50 104.06 09/44 4.75 125.56 Japan 12/16 0.10 100.19 12/19 0.08 99.94 09/24 0.50 101.11 09/44 1.70 107.45 Netherlands 04/17 0.50 101.15 07/24 2.00 110.87 New Zealand 12/17 6.00 106.73 04/23 5.50 111.98 Norway 05/17 4.25 107.72 03/24 3.00 111.48 Portugal 02/16 6.40 106.83 02/24 5.65 121.22 Spain 10/17 0.50 99.34 10/24 2.75 107.89 Sweden 08/17 3.75 109.94 05/25 2.50 114.83 Switzerland 10/16 2.00 103.90 07/25 1.50 111.81 United Kingdom 01/17 1.75 102.30 07/20 2.00 102.78 09/24 2.75 107.43 01/45 3.50 117.71 United States 11/16 0.50 99.78 11/19 1.50 99.41 11/24 2.25 100.38 11/44 3.00 102.60 Data provided by SIX Financial Information & Tullett Prebon Information

P/E MCap m

Stock

5.40 10.42 170995.68 2.17 27.75 41231.09 1.07 19.59 24264.43 0.44 46.32 185079.18 2.66 22.69 39819.08 2.36 14.54 27724.29 18.57 194036.04 34.19 82571.74 1.52 17.19 46041.53 2.02 19.17 59275.48 2.07 18.48 89034.89 2.31 38.35 100273.04 1.40 11.54 46595.07 1.53 26.55 26932.86 2.14 25.94 26230.66 2.58 15.68 56859.06 0.95 20.81 25006.08 64.20 94350.93 5.37 28.05 22211.85 0.78 33.05 39146.95 3.77 10.13 201254.58 0.04 14.52 27045.92 2.66 18.87 139549.82 0.07 19.06 166485.53 2.02 30.48 29925.69 13.26 12848.82 2.76 24.06 183833.34 23.45 31639.37 1.94 31.68 63743.2 1.50 18.33 121085.64 4.17 11.50 79984.72 1.80 17.38 27611.01 0.89 32.23 62405.51 1.55 29.04 46469.22 1.32 150.25 25687.02 1.69 19.83 35336.6 1.77 16.84 26499.45 1.11 24.47 105008.73 0.37 22.95 59525.01 2.25 10.64 31555.34 0.54 4.32 40470.3 1.62 10.48 22549.59 16.10 42459.09 1.34 12.53 28918.4 0.90 22.35 156497.15 3.10 29.65 42960.1 2.97 16.06 54918.69 3.64 19.54 59026.23 2.44 22.15 65472.79 2.70 19.77 32125.67 - -591.78 71386.42 1.01 28.89 31629.27 1.41 24.53 60263.82 2.69 20.94 42880.5 0.47 16.62 49074.24 3.28 15.53 31465.01 34.80 61883.29 2.81 11.83 385765.56 76.57 174245.41 0.27 25.78 50505.92 3.02 10.38 58692.48 0.82 15.52 35462.73 5.13 11.31 24512.8 1.60 19.97 47415.24 3.32 17.86 257833.28 2.85 20.67 31630.34 2.68 21.69 52153.36 19.54 160371.02 1.09 11.64 84870.4 29.44 152755.46 1.50 10.33 32856.04 19.58 32070.71 1.40 8.80 20621.06 1.44 15.63 71954.25 49.15 26087.44 1.74 23.57 133495.91 1.77 19.12 77012.88 2.45 10.76 160572.41 1.77 22.47 37408.44 2.34 18.35 179813.65 0.86 33.32 26790.98 2.46 18.34 299854.7 1.80 23.09 31643.87 2.44 11.85 231599.48 2.81 20.98 42713.16 4.05 34.29 41096.69 3.38 15.69 35370.64 0.97 21.68 30447.63 3.21 17.40 44799.62 - -37.26 10627.59 2.54 30.93 83303.26 2.71 19.88 60047.9

52 Week High Low

Price Day Chg

Lowes 67.12 Lyondell 75.76 Marathon Ptl 86.13 MarathonOil 26.87 Marsh&M 57.96 MasterCard 88.01 McDonald's♦ 91.03 McGraw Hill 92.19 McKesson♦ 211.92 Medtronic 74.22 Merck♦ 60.45 Metlife♦ 55.55 MicronTech 35.68 Microsoft 47.73 MondelezInt 38.47 Monsanto 120.96 MorganStly 37.82 Netflix 339.75 News Corp A 37.51 NextEraE♦ 103.06 Nike♦ 98.12 NobleEngy 46.57 NorfolkS 103.38 Northrop♦ 146.26 NtlOilVarc♦ 63.72 OccidPet♦ 76.52 Oracle 41.37 Pepsico♦ 96.89 Pfizer 32.01 Phillips66 67.60 PhilMorris 86.61 PionrNat 134.83 PNCFin 89.80 PPG Inds♦ 223.25 Praxair♦ 127.00 Prec Cast♦ 235.14 Priceline 1126.34 ProctGmbl 91.15 Prudntl♦ 89.69 PublStor♦ 184.63 Qualcomm♦ 72.48 Raytheon 106.85 Regen Pharm 428.47 ReynoldsAm♦ 65.69 Salesforce 56.08 Schlmbrg♦ 84.31 SempraEgy 110.51 SimonProp 182.47 SouthCpr 28.39 Southern 48.61 Southwest Air♦ 42.07 SpectraEn 35.64 Sprint 4.47 Starbucks 83.97 StateSt 78.95 Stryker 93.72 Target 74.52 TeslaMotors 214.85 TexasInstr 54.67 TheTrvelers♦ 105.17 ThrmoFshr♦ 127.91 TimeWrnr♦ 84.13 TimeWrnrC♦ 148.02 TJX Cos 66.22 T-Mobile US 25.76 Twitter 36.91 UnionPac♦ 115.57 UPS B 111.30 USBancorp 45.20 UtdHlthcre♦ 100.57 UtdTech 114.68 ValeroEngy♦ 47.35 Verizon 46.63 Vertex Pharm 121.62 VF Cp♦ 73.75 Viacom♦ 73.28 Visa Inc 265.15 Walgreen♦ 71.63 WalMartSto♦ 84.34 Wellpoint♦ 128.71 WellsFargo 55.10 Williams Cos♦ 45.56 Yahoo 50.42 Yum!Brnds 72.72

Yld

1.99 67.27 44.13 1.14 115.40 74.04 1.07 97.94 74.64 0.44 41.92 26.32 0.43 58.74 44.25 1.68 89.87 68.68 1.03 103.78 89.34 0.64 93.94 71.16 3.80 214.37 156.00 0.99 75.31 53.33 0.92 62.20 47.61 0.59 57.57 46.15 0.82 36.59 20.64 0.83 50.05 34.63 0.36 39.54 31.83 1.61 128.79 104.08 0.43 38.14 28.31 5.43 489.29 299.50 0.52 38.08 30.67 1.62 105.94 81.52 0.74 99.50 69.85 0.79 79.63 45.14 2.10 117.64 87.14 1.94 148.77 107.21 0.64 86.55 62.56 1.38 101.38 74.36 0.45 43.19 33.22 0.71 100.57 77.01 0.15 33.12 27.51 0.49 87.98 66.12 1.01 91.63 75.28 3.28 234.60 130.06 1.03 90.98 73.92 2.40 225.79 171.56 1.40 135.24 117.32 0.24 275.09 215.09 10.82 1378.96 1017.28 1.15 91.28 75.26 3.31 94.30 75.89 0.37 188.36 147.14 0.98 81.97 67.67 0.72 110.00 85.30 5.54 437.64 257.69 0.69 67.59 46.55 0.76 67.00 48.18 1.14 118.76 82.13 2.18 114.50 86.00 -0.24 184.03 148.36 -0.47 33.90 24.70 0.69 48.61 40.03 0.59 42.94 17.96 0.50 43.12 32.80 0.11 11.47 4.22 1.31 84.20 67.93 0.57 80.14 62.67 1.08 95.37 71.22 1.61 74.58 54.66 5.01 291.42 136.67 0.58 56.00 40.33 0.91 106.13 79.89 0.73 129.69 100.04 0.92 88.13 60.72 2.82 155.32 128.78 1.93 66.45 51.91 0.42 35.50 24.50 0.56 74.73 29.51 1.88 123.61 80.02 1.24 111.57 93.19 0.56 45.52 38.10 1.48 101.33 69.57 1.18 120.66 97.30 0.70 59.69 42.53 0.45 53.66 45.45 4.42 122.26 59.79 1.11 74.72 55.14 0.28 89.76 65.86 3.43 265.63 194.84 3.48 76.39 54.86 1.36 87.07 72.27 0.94 129.96 81.84 0.84 55.35 43.47 0.83 59.77 33.98 1.22 52.62 32.15 2.19 83.58 65.81

P/E MCap m

1.20 26.99 65301.63 3.32 9.20 37930.6 1.98 11.05 24133 2.81 10.27 18134.48 1.72 22.48 31350.52 0.48 31.18 97948.11 3.45 18.46 89385.02 1.24 28.92 25029.59 0.44 36.45 49140.38 1.55 26.15 73051.05 2.82 34.17 172321.04 2.18 11.73 63107.13 14.85 38300.88 2.27 19.33 393431.37 1.43 37.11 64626.64 1.34 24.66 58553.51 0.77 15.54 74028.99 93.20 20415.92 0.65 21.37 51918.41 2.66 23.90 44983.87 0.92 32.48 67109.23 1.33 18.87 16851.66 2.03 16.67 31990.1 1.73 16.08 29544.42 2.19 10.75 27436.16 3.54 10.98 59335.76 1.10 18.28 183323.05 2.44 22.14 145006.16 3.09 20.43 201684.04 2.55 10.95 37417.45 4.27 17.94 134567.27 0.06 -77.98 19300.63 1.98 12.51 47253.64 1.11 22.94 30637.73 1.94 20.87 37004.31 0.05 18.93 33515.14 26.27 58970.68 2.65 26.53 246284.61 2.29 18.20 40898.64 2.94 38.01 31890.34 2.06 17.01 120505.32 2.14 16.80 32949.12 - 144.81 42714.99 3.89 22.93 34900.01 - -112.42 34377.04 1.74 16.37 108489.59 2.29 24.95 27173.71 2.68 39.34 56706.95 1.57 17.57 23227.77 4.11 21.46 43739.9 0.46 26.29 28551.38 3.56 24.68 23914.45 -8.80 17663.46 1.20 32.00 62834.75 1.37 17.43 32961.25 1.26 57.80 35456.2 2.38 31.83 47466.59 - -135.62 26938.28 2.13 24.53 57747.92 1.93 10.46 34852.95 0.45 31.85 51167.26 1.43 18.15 70541.85 1.90 21.47 41518.8 0.95 22.29 45618.98 - 169.52 20797.35 - -21.30 23419.82 1.51 22.04 102753.2 2.29 28.52 78170.93 2.03 15.33 80880.26 1.26 18.69 96526.19 1.99 17.48 104548.98 2.04 6.84 24680.95 4.44 10.41 193501.62 - -56.02 29252.26 1.38 26.05 31850.58 1.66 13.94 26350.86 0.58 31.78 130772.5 1.69 37.86 68076.21 2.22 18.07 271827.72 1.27 16.42 34744.16 2.28 13.95 285812.17 3.76 17.49 34054.4 6.92 47765.46 1.97 23.44 31971.28

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

Dec 11 US$ JPMorgan Chase & Co. Duke Energy Ohio, Inc. Citigroup Funding Inc. Ryder System, Inc. Bear Stearns Cos, LLC Cummins Inc. Euro Standard Chartered PLC Anheuser Busch InBev NV/SA BP Capital Markets Philip Morris Intl, Inc. Yen Wal-Mart Stores, Inc. £ Sterling BG Energy Capital plc IPIC GMTN Limited

Red date Coupon

Ratings M*

Bid yield

Day's chge yield

Mth's Spread chge vs yield US

F*

Bid price

05/25 06/25 09/25 12/25 03/26 02/27

5.50 6.90 4.25 6.95 6.00 6.75

ABBB+ ABBB A A+

Baa1 Baa1 Baa2 Baa1 A3 A3

A AA AA+ A

101.45 118.30 100.58 122.47 101.32 124.27

5.42 4.72 6.15 4.40 5.92 4.23

0.01 0.08 0.00 0.07 0.00 0.20

0.13 0.19 0.01 0.17 0.05 0.21

3.22 2.51 3.94 2.19 -

10/25 03/26 09/26 05/29

4.00 2.70 2.21 2.88

BBB+ A A A

A3 A2 A2 A2

A+ A A A

105.70 104.54 103.05 111.48

3.36 2.24 1.92 1.95

-0.02 0.01 -0.03 -0.03

0.00 0.22 -0.07 -0.17

1.15 -

07/15

0.94

AA

Aa2

AA

100.38

0.32

0.00

0.01

-0.30

12/25 03/26

5.13 6.88

AAA

A2 Aa2

AAA

117.02 129.34

3.25 3.65

0.01 0.00

-0.24 -0.08

1.05 -

S*

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

GILTS: UK CASH MARKET

Dec 11 Day Chng Prev 52 wk high 52 wk low VIX 16.17 -2.36 18.53 31.06 10.28 VXD 15.72 -1.79 17.51 22.60 7.64 VXN 17.57 -1.90 19.47 31.17 9.66 VDAX 17.40 -0.10 17.50 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. ‡ Deutsche Borse. VDAX: DAX Index Options Volatility.

Australia

Yld

BONDS: GLOBAL INVESTMENT GRADE Day's chge yield

VOLATILITY INDICES Day's change

CREDIT INDICES

Short 7 Days One Three Six One Dec 11 term notice month month month year Euro -0.15 0.00 -0.14 0.01 -0.13 0.02 -0.05 0.10 0.05 0.20 0.21 0.36 Sterling 0.40 0.55 0.40 0.55 Swiss Franc Canadian Dollar US Dollar 0.08 0.18 0.08 0.18 0.10 0.20 0.15 0.25 0.23 0.33 0.48 0.58 Japanese Yen -0.01 0.04 -0.01 0.04 -0.30 0.00 -0.10 0.20 -0.05 0.25 0.00 0.30 Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. LA 7 days notice: Tradition (UK).”

Stock

BONDS: HIGH YIELD & EMERGING MARKET

Close Prev price price Sasol 394.46 401.96 Naspers N 1374.64 1389.01 MTN Grp 209.00 214.56 ICICI Bk 347.95 352.05 YPF 297.00 297.00 Airbus Grpe 41.32 43.18 Lukoil 2223.40 2296.00 Surgnfgz 27.22 28.31 Petrobras 10.11 10.11 CntnentlRes 34.52 33.53 Marathon Ptl 86.13 85.06 Williams Cos 45.56 44.73 FreeportMc 23.59 23.96 Suncor En 32.41 32.41 SaudiBasic 81.75 82.06 Novatek 424.70 428.00 Magnit 11000.00 11350.00 CanNatRs 33.84 33.84 BncBrasil 23.93 23.93 MarathonOil 26.87 26.43 Based on the FT Global 500 companies in local currency

BOND INDICES Since 16-12-2008 16-12-2008 18-02-2010 05-05-2014 05-03-2009 05-10-2010 03-08-2011

INTEREST RATES: MARKET Over Dec 11 (Libor: Dec 10) night US$ Libor 0.11200 Euro Libor -0.08643 £ Libor 0.46813 Swiss Fr Libor Yen Libor Euro Euribor Sterling CDs US$ CDs Euro CDs LA 7Day Notice 0.45%-0.40%

23.50 45870.64 24.01 30598.14 13.24 26044.02 24.68 123197.73 18.28 44505.09 8.11 34751.79 19.18 22932.2 9.88 119929.41 18.14 24925.55 9.69 33568.79 -12.73 33889.12

14.93 96.23 54.59 89.95 72.22 48.69 46.40 54.71 214.30 57.36 21.31

Stock

FT 500: BOTTOM 20 Day change change % -0.50 -0.22 -2.05 -7.02 -0.52 -2.26 1.60 0.41 -0.07 -0.53 -4.03 -2.24 0.00 0.00 3.48 5.11 2.19 3.96 1.94 1.34 -0.11 -1.62 -0.10 -0.59 0.60 0.82 1.46 1.39 2.14 4.62 2.17 2.85 1.99 3.06 2.49 2.15 -0.04 -0.65 -0.11 -0.84

Close Prev price price TevaPha 223.30 223.80 Citic Secs 27.15 29.20 SaicMotor 22.47 22.99 ITC 396.60 395.00 IndstrlBk 13.25 13.32 Kweichow 175.89 179.92 IntSPaolo 2.49 2.49 Walgreen 71.63 68.15 eBay 57.46 55.27 Northrop 146.26 144.32 BkofComm 6.70 6.81 ChinaMBank 16.82 16.92 PingAnIns 73.70 73.10 GileadSci 106.30 104.84 Delta 48.36 46.22 Facebook 78.35 76.18 Lowes 67.12 65.13 Celgene 118.13 115.64 ChConstBk 6.07 6.11 ShgPdgBk 13.05 13.16 Based on the FT Global 500 companies in local currency

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

P/E MCap m

0.29 -0.10 -0.83 1.12 0.53 -0.28 -0.57 0.03 0.60 -0.20 0.03

FT 500: TOP 20

Dec 11 US US US Euro UK Japan Switzeland

Yld

Bid Day chg Wk chg Month Year Yield yield yield chg yld chg yld 2.23 0.00 -0.06 -0.35 -0.92 2.94 -0.01 -0.17 -0.45 -1.51 0.56 -0.01 0.06 0.05 0.02 0.85 0.00 -0.06 -0.15 0.00 0.29 0.00 -0.02 -0.03 -0.88 1.14 -0.03 -0.09 0.00 0.00 0.99 0.02 0.03 -0.02 0.00 1.98 0.03 -0.04 -0.18 0.00 0.00 0.00 0.00 0.00 0.00 0.96 0.01 -0.06 -0.05 0.00 0.04 -0.01 -0.01 0.01 -0.56 0.91 0.00 -0.08 -0.15 -1.39 0.00 -0.01 -0.02 -0.01 0.00 0.27 0.01 0.00 -0.02 0.00 0.95 -0.01 -0.08 -0.21 0.00 1.98 -0.02 -0.13 -0.29 -1.36 -0.02 0.00 0.00 0.00 0.00 0.09 -0.01 -0.04 -0.02 0.00 0.68 0.00 -0.10 -0.12 0.00 1.48 -0.01 -0.15 -0.21 -1.20 10.33 1.03 4.04 3.26 0.00 9.21 0.43 1.40 0.56 0.41 0.23 -0.01 0.00 -0.09 -1.51 1.31 0.00 -0.08 -0.29 0.00 0.61 0.01 0.09 -0.02 0.00 1.13 0.01 0.11 0.00 0.00 2.06 0.00 0.03 -0.30 0.00 3.41 0.01 0.02 -0.30 -1.46 0.01 0.00 0.00 0.00 0.00 0.09 0.00 0.00 -0.10 0.00 0.38 0.00 -0.02 -0.12 0.00 1.35 0.02 -0.07 -0.13 0.00 0.01 -0.01 -0.02 0.00 0.00 0.82 0.00 -0.07 -0.13 0.00 3.63 -0.02 -0.06 -0.17 -1.34 3.81 0.02 -0.04 -0.31 -1.00 1.01 -0.15 -0.19 -0.28 -0.80 1.65 -0.13 -0.20 -0.35 0.00 0.51 -0.03 0.08 -0.02 -3.19 2.97 0.02 0.18 -0.23 -3.16 0.73 0.02 0.10 0.04 0.00 1.87 0.00 -0.01 -0.25 0.00 0.01 0.00 -0.03 -0.04 -1.32 0.99 -0.02 -0.09 -0.15 0.00 -0.14 0.00 0.00 0.00 0.00 0.36 0.00 -0.03 -0.12 -0.92 0.65 0.02 -0.01 -0.09 -0.34 1.48 0.00 -0.04 -0.19 0.00 1.91 0.00 -0.08 -0.27 0.00 2.64 -0.01 -0.09 -0.29 0.00 0.61 0.04 0.07 0.00 0.00 1.62 0.07 0.04 0.00 0.00 2.21 0.05 -0.04 -0.14 0.00 2.87 0.04 -0.07 -0.20 0.00

Red 52 Week Amnt Change in Yield Dec 11 Price £ Yield Day Week Month Year High Low £m Tr 3.5pc 'WL Tr 2.75pc '15 100.27 0.32 0.00 -0.05 -0.19 -2.25 102.57 100.27 0.29 Tr 2pc '16 101.68 0.48 -0.02 0.00 -0.05 -1.12 102.88 101.66 0.32 Tr 1.75pc '17 102.34 0.63 -0.02 0.07 0.18 0.06 102.56 101.07 0.29 Tr 5pc '18 112.95 0.93 0.01 0.08 0.24 -1.45 114.65 111.68 0.35 Tr 4.5pc '19 113.76 1.16 0.02 0.17 0.57 0.34 114.43 111.17 0.36 Tr 4.75pc '20 117.09 1.36 0.04 0.27 0.79 1.32 117.71 113.53 0.33 Tr 8pc '21 140.05 1.50 0.04 0.32 0.89 1.15 140.87 135.65 0.24 Tr 4pc '22 116.32 1.60 0.04 0.47 1.41 5.03 116.72 109.05 0.38 Tr 5pc '25 128.85 1.89 0.07 0.84 2.28 8.49 129.06 116.64 0.35 Tr 4.25pc '27 124.19 2.11 0.09 1.06 3.03 11.80 124.32 109.01 0.31 Tr 4.25pc '32 126.94 2.36 0.19 1.30 3.87 14.26 126.94 109.23 0.35 Tr 4.25pc '36 128.63 2.50 0.23 1.50 4.33 15.54 128.63 109.13 0.26 Tr 4.5pc '42 137.87 2.59 0.28 1.90 4.97 17.70 137.87 114.63 0.26 Tr 3.75pc '52 127.06 2.62 0.33 2.56 6.37 22.06 127.06 101.59 0.22 Tr 4pc '60 137.42 2.59 0.36 2.89 7.07 23.77 137.42 108.28 0.21 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield. This table shows the gilts benchmarks & the non-rump undated stocks. A longer list appears on Mondays & the full list on Saturdays, and can be found daily on ft.com/bond&rates.

GILTS: UK FTSE ACTUARIES INDICES Price Indices Fixed Coupon 1 Up to 5 Years 2 5 - 10 Years 3 10 - 15 Years 4 5 - 15 Years 5 Over 15 Years 6 Irredeemables 7 All stocks Index Linked 1 Up to 5 Years 2 Over 5 years 3 5-15 years 4 Over 15 years 5 All stocks Yield Indices 5 Yrs 10 Yrs 15 Yrs

Day's chg % 0.01 0.06 0.09 0.07 0.27 0.01 0.13

Dec 11 100.22 180.48 207.15 186.49 294.17 425.57 172.94 Dec 11 315.94 568.87 437.52 693.80 527.62 Dec 11 1.30 1.94 2.31

Day's chg % -0.14 0.49 -0.12 0.76 0.42 Dec 10 1.31 1.95 2.32

Yr ago 1.76 2.88 3.34

Total Return 2333.91 3158.28 3690.27 3287.17 4140.11 5024.52 3139.53

Month chg % -0.40 6.47 2.01 8.55 5.71

Return 1 month 0.58 1.96 3.37 2.37 5.92 9.80 3.14

Year's chg % -1.95 19.26 7.09 25.73 16.81

20 Yrs 45 Yrs Irred

inflation 0% Dec 11 Dur yrs Previous Yr ago Dec 11 Real yield Up to 5 yrs -1.01 2.58 -1.07 -1.41 -1.57 Over 5 yrs -0.74 22.67 -0.72 0.01 -0.77 5-15 yrs -0.80 9.23 -0.81 -0.18 -0.92 Over 15 yrs -0.73 28.47 -0.70 0.04 -0.75 All stocks -0.74 20.50 -0.72 -0.02 -0.78 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts

Total Return 2375.03 4167.80 3287.25 4996.60 3910.67 Dec 11 2.50 2.62 3.47

Return 1 year 2.18 7.82 14.43 9.67 21.99 29.90 11.40

Yield 0.98 1.62 2.03 1.78 2.55 3.47 2.27

Return 1 month -0.17 6.64 2.24 8.69 5.88

Return 1 year -0.13 20.34 8.45 26.63 17.99

Dec 10 2.52 2.63 -

Yr ago 3.51 3.53 -

inflation 5% Dur yrs Previous 2.60 -1.62 22.78 -0.75 9.26 -0.93 28.53 -0.72 20.64 -0.76

Yr ago -1.96 -0.03 -0.32 0.01 -0.07

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

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

24

★

FINANCIAL TIMES

Friday 12 December 2014

MANAGED FUNDS SERVICE Fund

Bid

Offer D+/- Yield

ACPI Global UCITS Funds Plc

(IRL)

www.acpi.com Regulated ACPI Emerging Mkts FI UCITS Fund USD A $ 110.23

-

-0.98 0.00

ACPI Global Credit UCITS Funds USD A $ 13.64

-

-0.01 0.00

ACPI Global Fixed Income UCITS Fund USD A $ 149.06

-

0.07 0.00

ACPI India Fixed Income UCITS Fund USD A3 $ 86.35

-

0.14 0.00

ACPI International Bond UCITS Fund USD A $ 18.12

-

0.00 0.00

ACPI Select UCITS Funds PLC

(IRL)

Regulated

Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Bond World High Yield P Cap*

€ 103.68

-

-0.59 0.00

Cap Group Em Mkts Fund B

Bond World Inflation-Ld P Cap*

€ 116.05

-

-0.09 0.00

Growth and Income Funds

Convertible Bond World P Cap*

€ 108.80

-

-0.41 0.00

Cap Group Glb Growth Inc BD

£ 11.61

-

Equity Best Selection Euro P Cap* € 139.15

-

-0.48 0.00

Cap Group Glb Growth Inc B

€ 15.59

Equity Best Selection Europe P Cap* € 134.56

-

-0.45 0.00

Cap Group Glb Growth Inc B

$ 82.81

-

-0.42 0.00

-

-0.04 0.00

CC Japan Alpha Fd - Cls B GBP

£ 10.89 10.89 -0.17 0.00

SFr 18.73

-

-0.07 0.00

CC Japan Alpha Fd - Cls C JPY

¥ 1068.43 1068.43 -16.41 0.00

-0.42 0.00

Cap Group Glb Growth Inc B

$ 19.32

-

-0.08 0.00

CC Japan Inc & Grwth Fd - Cls Acc USD $ 15.47 15.47 -0.22 0.00

-1.51 0.00

Cap Group Eur Growth Inc B

€ 24.39

-

-0.07 0.00

CC Japan Inc & Grwth Fd - GBP Founder Acc £ 15.87 15.87 -0.22 0.00

Equity Europe Growth P Cap*

€ 134.92

-

-0.44 0.00

Cap Group Eur Growth Inc B

SFr 29.31

-

-0.11 0.00

CC Japan Inc & Grwth Fd - GBP Founder Inc £ 15.07 15.07 -0.20 0.00

Equity India P Cap*

$ 117.70

-

-0.16 0.00

Cap Group Eur Growth Inc B

$ 30.23

-

-0.13 0.00

CC Japan Inc & Grwth Fd - JPY Founder Acc ¥ 1607.99 1607.99 -21.92 0.00

Equity Indonesia P Cap*

$ 109.81

-

1.19 0.00

Cap Group Eur Growth Inc BD

£ 17.33

-

-0.07 1.28

CC Japan Inc & Grwth Fd - JPY Founder Inc ¥ 1515.57 1515.57 -20.66 0.00

Equity Japan P Cap*

¥ 98021.00

-

-2232.00 0.00

Cap Group US Growth Inc B

€ 20.13

-

-0.02 0.00

CC Japan Inc & Grwth Fd - USD Founder Acc $ 15.81 15.81 -0.22 0.00 CC Japan Inc & Grwth Fd - USD Founder Inc $ 15.01 15.01 -0.21 0.00

¥ 187074.00

-

-982.00 0.00

Cap Group US Growth Inc B

SFr 24.19

-

-0.04 0.00

ACPI Balanced UCITS Fund EUR Retail € 10.65

-

-0.05 0.00

Equity Latin America P Cap*

$ 32.25

-

-0.81 0.00

Cap Group US Growth Inc B

$ 24.95

-

-0.05 0.00

ACPI Balanced UCITS Fund GBP Retail £ 10.74

-

-0.05 0.00

Equity Russia Opport. P Cap*

$ 461.55

-

-1.15 0.00

Cap Group US Growth Inc BD

£ 15.75

-

-0.02 0.03

ACPI Balanced UCITS Fund USD Institutional $ 10.00

-

-

-

Equity Turkey P Cap*

€ 116.97

-

0.92 0.00

Objective Based Funds

ACPI Balanced UCITS Fund EUR Institutional € 10.00

-

-

-

Equity USA Growth P Cap*

$ 134.82

-

-2.41 0.00

ACPI Balanced UCITS Fund GBP Institutional £ 10.00

-

-

-

Equity USA Mid-Cap P Cap*

$ 174.66

-

-3.67 0.00

ACPI Focused Equity UCITS Fund $ 12.26

-

Equity USA Small-Cap P Cap*

$ 151.88

-

-3.33 0.00

Equity World Low Vol P Cap*

€ 141.83

-

-1.22 0.00

V350 P Cap*

€ 101.78

-

-0.19 0.00

AC Opp - Aremus Fund EUR A

€ 104.00

-

-0.12

€ 122.19

-

-0.29 0.00

AC Risk Parity 12 Fund (EUR A)

€ 146.64

-

-0.57

AC Risk Parity 17 Fund EUR A

€ 95.76

-

-0.55 0.00

ACQ - Risk Parity Bond EUR A

€ 103.43 103.43 -0.02 0.00

-

(LUX) 5 Allee Scheffer L-2520 Luxembourg + 44 (0)20 7074 9332 www.amundi-funds.com FCA Recognised Bd. Euro Corporate AE Class - R - EUR € 18.73 Bd. Global AU Class - R - USD

$ 26.91

-

-0.02 0.00 -0.07

-

Eq. Emerging Europe AE Class - R - EUR € 26.83

-

-0.24 0.00

Eq. Emerging World AU Class - R - USD $ 91.66

-

-0.70 0.00

Eq. Greater China AU Class - R - USD $ 605.02

-

1.37 0.00

Eq. Latin America AU Class - R - USD $ 456.65

-

-11.20 0.00

Gl. Macro Bds & Curr Low Vol AHG - GBP £ 98.74

-

-0.16 0.00

The Antares European Fund Limited AEF Ltd Usd (Est)

$ 583.53

-

3.79

AEF Ltd Eur (Est)

€ 585.00

-

3.90 0.00

-

Arbiter Fund Managers Limited

(LUX) 22 Conduit Street, Mayfair, London W1S 2XR +44(0)20 7491 1901 FCA Recognised The Arbiter Global Emerging Markets Fund Class A USD $ 107.78

-

-0.12 0.00

Arisaig Partners Other International Funds Arisaig Africa Consumer Fund Limited $ 17.66

-

-0.06 0.00

Arisaig Asia Consumer Fund Limited $ 60.07

-

-0.46 0.00

Arisaig Global Emerging Markets Consumer Fund $ 10.33

-

-0.07 0.00

Arisaig Global Emerging Markets Consumer UCITS € 10.84

-

-0.05 0.00

Arisaig Global Emerging Markets Consumer UCITS STG £ 10.91

-

-0.06

Arisaig Latin America Consumer Fund $ 23.99

-

-0.11 0.00

Cap Group Em Mk Tot Opp B

€

9.26

-

-0.05 0.00

Cap Group Em Mk Tot Opp B

$ 11.50

-

-0.07 0.00

Cap Group Em Mk Tot Opp Bd

£

-

-0.05 1.38

Artemis Gbl Hedge Fd Ltd EUR

(CYM)

€ 52.38

-

0.05 0.01

$ 56.42

-

0.03

-

€ 179.92

-

-7.17

-

$ 187.05

Artemis Pan-Euro Hdg USD

-

SFr 13.24

-

-0.14 0.00

-

-0.12 0.00

$ 13.67

-

-0.16 0.00

1.00

-

0.00 0.03

Bank of America Cap Mgmt (Ireland) Ltd

(IRL)

Regulated Global Liquidity USD

$

1.00

-

0.00 0.20

Cap Group Em Mkts Debt Bd

£

7.43

-

-0.10 4.58

Cap Group Em Mk LocCur Dbt B

$ 10.29

-

-0.10 0.00

Cap Group Euro Bond B

SFr 19.02

-

-0.01 0.00

Cap Group Euro Bond B

£

9.75

-

-0.01 1.22

Cap Group Euro Bond B

$ 19.62

-

-0.02 0.00

Cap Group Euro Bond BD

€ 15.83

-

0.00 0.00

SFr 32.45

-

-0.20 0.00

-

-0.49 0.00 -0.87 2.27

Baring China Bond Fund

$ 10.26

Baring Emerging Markets Corporate Debt Fund $

9.43

-

-0.02 0.00

-

-0.01 0.00

Baring European Opportunities Fund Class A EUR Acc € 10.95

-

-0.16 0.00

Baring Global Mining Fund - Class A GBP Inc £

-

-0.15 0.67

5.09

-7.60 -7.08

-

Artisan Global Equity Fund Class I USD Acc $ 14.35

-

-0.10

Artisan Global Opportunities I USD Acc $ 11.37

-

-0.11 0.00

-

Artisan Global Value Fund Class I USD Acc $ 16.12

-

-0.16 0.00

Artisan US Value Equity Fund Class I USD Acc $ 11.14

-

-0.22 0.00

Ashmore Sicav

(LUX)

2 rue Albert Borschette L-1246 Luxembourg FCA Recognised Ashmore SICAV Emerging Market Debt Fund $ 97.79

-

-1.17 11.38

$

5.39 -0.10 0.00

5.11

(LUX)

Regulated BlueBay Em Mkt Abs Ret Bd IN

€ 100.20

-

-0.39 0.00

BlueBay Em Mkt Bd B - USD

$ 289.28

-

-2.09 0.00

BlueBay Em Mkt Corp Bd B

$ 163.74

-

-1.85

BlueBay Em Mkt Sel Bd B - USD $ 157.47

-

-0.85 0.00

BlueBay Emg Mkt Loc Ccy Bd B - USD $ 155.76

-

-0.71 0.00

BlueBay Gbl Convert Bd I - USD

$ 188.81

-

-0.66 0.00

BlueBay Gbl High Yield Bd B

$ 129.64

-

-0.61 0.00

-

BONHOTE Bonhôte Alternative - Multi-Arbitrage (USD) Classe (EUR) € 6822.00 Bonhôte Alternative - Multi-Performance (USD) Classe (EUR) € 9947.00

-

CATCo Reinsurance Fund Ltd.

(BMU)

Regulated $ 1621.9448

-

24.1076

-

CATCo Re Fund Ltd Series B

$ 1665.2871

-

25.9697

-

CATCo Re Fund Ltd Series D

$ 1389.9270

-

21.0045 0.00

CATCo Re Fund Ltd Series E

$ 1414.4820

-

22.4772 0.00

(IRL)

Charles Schwab Worldwide Funds Plc $

1.00

-

(IRL) 0.00 0.01

Chartered Asset Management Pte Ltd Other International Funds CAM-GTF Limited

$ 346202.09 346202.10 491.77 0.00

CAM GTi Limited

$ 741.83 1.99

-

-44.22 0.00

1.99 -0.18 6.51

Cheyne Capital Management (UK) LLP Cheyne Convertibles Absolute Return Fund € 1317.34

-

-7.03 0.00

Cheyne European Real Estate Bond Fund € 112.43

-

-0.16 0.00

€ 119.86

-

-0.25 0.00

Cheyne Capital Management (UK) LLP Other International Funds Cheyne European Event Driven Fund € 143.23

-

2.57 0.00

Cheyne European High Yield Fund € 138.40

-

0.14 0.00

$ 211.79

-

-2.65

Cheyne Malacca Asia Equity Fund Class A $ 1500.81

-

-29.32 0.00

Cheyne Multi Strategy Liquid Fund $ 124.50

-

-1.11

Cheyne Real Estate Credit Holdings Fund £ 138.46

-

0.52 0.00

Cheyne Real Estate Debt Fund Class A1 £ 128.58

-

0.45 0.00

Cheyne Total Return Credit Fund - December 2017 Class $ 197.03

-

4.40 0.00

Cheyne Total Return Credit Fund December 2019 $ 127.97

-

0.00

Cheyne Long/Short Credit Fund

CMI Asset Mgmt (Luxembourg) SA

-

€ 26.48

-

-0.34 0.97

CMI Pacific Basin Enhanced Equity $ 43.33

-

-0.39 2.34

-

¥ 4010.55

-

-29.62 0.86

71.00 0.85

CMI UK Equity

£ 11.62

-

-0.16 2.16

CMI US Enhanced Equity F

$ 77.30

-

-1.29 0.56

(GSY)

£

1.25

-

-0.01 0.00

Japan Index Tracking

¥ 738.62

-

-5.68 0.94

UK Agricultural Class B

£

1.37

-

0.00 0.00

UK Eqty Index Tracking

£ 14.94

-

-0.20 2.96

Student Accom Class B

£

0.72

-

-0.28 0.00

US Eqty Index Tracking

$ 56.84

-

-0.94 0.78

-

-0.85 0.00

Global Bond

£

1.48

-

0.01 0.87

€ 111.32

-

-0.85 0.00

Global Network Mgd Global Mxd £

2.29

-

-0.02 0.20

Aspect Diversified Trends GBP

£ 115.17

-

-0.88 0.00

Global Equity

2.51

-

-0.03 0.02

(IRL) CG Asset Management Limited Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland 00 353 1 434 5098 FCA Recognised Capital Gearing Portfolio Fund Plc £ 26330.49 26330.49 -42.67 0.63 CG Portfolio Fund Plc

£

Bond Sub Funds CMI Euro Bond F

€ 45.73

-

0.06 1.86

CMI UK Bond

£

8.06

-

0.04 2.13

CMI US Bond

$ 13.28

-

0.05 1.56

American Dynamic

$ 3344.45

-

17.50 0.00

American One

$ 3181.71

-

3.97 0.00

Real Return Cls A

£ 169.62 169.62 -1.58 2.34 £ 127.50 127.50 -0.90 1.64

CMI Euro Currency Reserve

€ 24.98

-

0.00 0.65

£ 127.55 127.55 -0.26 0.27

CMI Stlg Currency Reserve

£

-

0.00 0.96

Bond Global

€ 1271.68

-

7.17 0.00

Dollar Fund Cls D

Eurocroissance

€ 774.38

-

6.44 0.00

Capital Value Fund Cls V

Currency Reserve Sub Funds

CMI US Dllr Currency Reserve

-17.49 0.00

CMI Access 80% Gu F

€

9.81 5.62

-

0.00 0.50 -0.01 0.00

$ 102.84

-

0.00 0.00

Bond Euro P Cap*

€ 156.31

-

-0.14 0.00

Bond Euro Medium Term P Cap* € 134.76

-

-0.09 0.00

Bond USA High Yield P Cap*

$ 18.64

-

-0.13 0.00

Bond USD Goverment P Cap*

$ 165.56

-

0.20 0.00

Bond World Corporate C

$ 151.96

-

0.12 0.00

Bond World Emerging P Cap*

$ 24.47

-

-0.22 0.00

Bond World Emerging Advanced C $ 96.57

-

-0.62 0.00

Bond World Emerging Local P Cap* $ 82.58

-

-0.51 0.00

-

-1.46 0.00

€ 15.12

-

Invesco Emerging Markets Bond A $ 21.10

-

-0.10 4.61

-0.14 0.00

-

-0.06 0.00

Invesco Continental European Equity A €

7.66

-

-0.14 0.08

-

-0.27 0.00

GAM Star North of South EM Equity Acc F $ 11.84

-

-0.05 0.02

Invesco Gilt A

£ 14.89

-

0.11 1.58

Crediinvest SICAV Sustainability € 14.22

-

-0.10 0.00

2a, rur Albert Borschette, BP 2175, L-1021, Luxembourg Phone: 800 22 089, 800 22 088 Regulated

GAM Star Local EM Rates and FX USD Acc $ 11.91

Crediinvest SICAV US American Value $ 18.16

China Consumer A-GBP

£ 14.22

-

0.10 0.00

GAM Star Technology USD Acc F $ 15.58

-

-0.19 0.00

Invesco Global Small Cap Equity A NAV $ 118.94

-

-1.50 0.00

China Focus A-GBP

-0.06 5.35

FIL Fund Management

(LUX)

Dantrust Management (Guernsey) Ltd

(GSY)

Regulated Dantrust II Limited

kr 459.40 459.50 -1.10 0.00

DAVIS Funds SICAV

(LUX)

Regulated

Dodge & Cox Worldwide Funds

(IRL)

6 Duke Street,St.James,London SW1Y 6BN www.dodgeandcox.worldwide.com 020 3713 7664 FCA Recognised

American Fund USD Class

$ 77.02

-

Other International Funds

EUR Accumulating Class

€ 10.91

-

-0.08

-

EUR Accumulating Class (H)

€

-

-0.02

-

9.76

EUR Distributing Class

€ 10.80

-

-0.08

-

EUR Distributing Class (H)

€

-

-0.02

-

9.66

(GSY)

Regulated $ 240.12 245.02 3.21 0.00

Taurus Emerging Fund Ltd

American Fund GBP Hedged

£ 41.96

-

-0.61 0.00

Latin American Fund USD Class

$ 17.50

-

-0.42 0.00

Foord Asset Mgt (Guernsey) Ltd

(GSY)

Regulated Foord International Trust

$ 34.07

-

-0.25 0.00

FourWinds Capital Management (UK) Limited (LUX)

-

58.00 0.16

0.00 0.00 0.01 0.00

Invesco Pacific Equity A

$ 48.79

-

-0.41 0.00

All Roads (CHF) PA

SFr 17.67

-

-0.11 0.00

Invesco Global Technology A

$ 15.15

-

-0.27 0.00

All Roads (USD) PA

$ 11.14

-

-0.07 0.00

Invesco UK Eqty A

£

-

-0.11 1.14

All Roads (GBP) PA

£ 11.34

-

-0.08 0.00

3.01 0.03 0.00

All Roads (EUR) PA

€ 11.30

-

-0.08

3.88 -0.02 0.00

Alpha Japan (EUR) PA F

€ 10.61

-

-0.21 0.00

Alpha Japan (CHF) PA F

SFr 13.34

-

-0.26 0.00

Alpha Japan (JPY) PA F

¥ 1257.00

-

-25.00 0.00

Other International Funds

Alpha Japan (USD) PA F £

5.73

-

-0.04 0.00

HPB Assurance Ltd Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 International Insurances Holiday Property Bond Ser 1

£

0.53

-

0.00 0.00

Holiday Property Bond Ser 2

£

0.62

-

0.00 0.00

-

Other International Funds

-

Asian Market Leaders - USD

$ 25.21

-

-0.41 0.00

£ 12.53

-

-0.23 0.00

Cap Group All Ctry Eq B

SFr 21.79

-

-0.16 0.00

Cap Group All Ctry Eq B

€ 18.13

-

-0.12 0.00

Cap Group All Ctry Eq B

$ 22.48

-

-0.16 0.00

Cap Group All Ctry Eq BD

£ 14.27

-

-0.11 0.00

Cap Group Global Equity B

$ 22.16

-

-0.11 0.00

Cap Group Global Equity BD

£ 13.62

-

-0.06 0.30

-0.08 0.00

Star Capitol America

Selected Asian P'folio

$ 48.45 48.46 -0.45 0.00

-0.29 0.00

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

Franklin Emerging Market Debt Opportunities Fund Plc Franklin Emg Mkts Debt Opp CHFSFr 19.14

USD Accumulating Share Class

$ 18.38

-

-0.28 0.00

GBP Accumulating Share Class

£ 18.20

-

-0.33 0.00

EUR Accumulating Share Class

€ 19.17

-

-0.41 0.00

Franklin Emg Mkts Debt Opp EUR € 12.88 Franklin Emg Mkts Debt Opp GBP £ 10.97

-

-0.26 5.85 -0.15 5.84 -0.08 5.77

Franklin Emg Mkts Debt Opp SGD S$ 23.81

-

-0.24 5.77

Franklin Emg Mkts Debt Opp USD $ 18.64

-

-0.25 5.77

PO Box 660 Ground Floor, Tudor House Le Bordage St Peter Port Guernsey - Channel Islands United Kingdom GY1 3PU +44(0)1481 734343 [email protected] www.dominion-funds.com FCA Recognised

$ 2704.92

-

52.90 0.00

Europe Convertible Bd A (Dis) - D - EUR F € 13.02

-

-0.01 1.08

Haussmann Cls C

€ 2365.06

-

46.34 0.00

Europe Convertible Bd B (Cap)

€ 14.81

-

-0.02 0.00

Haussmann Cls D

SFr 1267.77

-

24.73 0.00

Global Convertible A (Dis) F

$ 19.11

-

-0.09 0.26

Global Convertible B (Cap) F

£ 125.11

-

-1.18 0.00

Frk Euro Liquid Reserve

€

4.37

-

0.00 0.00

DGT - Strategic £ I Class

£

1.13

-

-0.01 0.00

Frk Euro Short Dur Bond Fd

€ 10.16

-

0.00

DGT - Strategic £ R Class

£

1.14

-

-0.01 0.00

Frk Europ Corp Bond Fd

€ 11.39

-

-0.01 1.67

Frk European Total Return

€ 10.05

-

-0.02 1.63

Frk Global Aggr.Inv.Grd Bond Fd

$ 10.70

-

0.02 0.00

Frk Global Aggregate Bond Fd

$ 10.13

-

0.01 1.32

DX EVOLUTION PCC LIIMITED - DXE (€) FUND € 99.10 99.10 1.32 0.00

Frk Global Income Fd

$ 10.35

-

-0.07 5.30

DX EVOLUTION PCC LIMITED - DXE (US$) FUND $ 111.73 111.73 0.00 0.00

Frk Income

$ 12.41

-

-0.15 2.99

Frk US Government

$

9.47

-

0.01 2.34

Frk US Liquid Reserve Inc

$

9.67

-

0.00 0.00

Frk US Low Duration Fd

$

9.88

-

-0.01 0.59

Frk US Total Return

$ 11.39

-

0.00 1.70

Tem Asian Bond

$ 13.71

-

-0.01

Tem Asian Growth

$ 32.58

-

0.04 0.28

Tem Emerging Markets

$ 32.35

-

-0.19 0.26

Comgest AM International Ltd 46 St Stephen's Green, Dublin 2, Ireland FCA Recognised

9.20

-

0.05 0.00

$ 11.40

-

0.04 0.00

SFr 11.05

Comgest Gth Asia ex Jap DIS F

$

Dragon Capital Group

Tem Emg Mkts Balanced AQdis

$

7.83

-

-0.08 2.75

Tem Emg Mkts Bd

$ 17.94

-

-0.20

Tem Global

$ 34.12

-

-0.43 0.45

Tem Global (Euro)

€ 16.97

-

-0.32 0.39

Tem Global Balanced

$ 22.85

-

-0.21 0.63

Tem Global Bond

$ 20.89

-

-0.19 2.30

Tem Global Bond (Euro)

€ 10.37

-

-0.09 2.84

Tem Global Equity Income

$ 10.13

-

-0.09 3.26

Global Growth I2 Acc

€ 112.93

-

-1.25 2.84

(IRL) Edinburgh Partners Limited 27-31 Melville Street, Edinburgh, Edinburgh, EH2 4DJ +353 1 434 5143 Dealing - Fax only - +353 1 434 5230 FCA Recognised Edinburgh Partners Opportunities Fund PLC

-

(IRL)

-0.02 0.32

Comgest Gth Emerging Mkt DIS F $ 32.80

-

-0.26 0.28

-

0.05 0.00

-

0.03 0.00

Cap Group AsiaP ex Jp Eq B

SFr 17.31

-

-0.16 0.00

Cap Group AsiaP ex Jp Eq B

€ 14.41

-

-0.12 0.00

Cap Group AsiaP ex Jp Eq B

$ 17.85

-

-0.18 0.00

Cap Group Asia Pex Jp Eq BD

£ 10.80

-

-0.10 0.39

31/32 St James's Street, London, SW1A 1HD FCA Recognised

Cap Group Em Mkts Fund BD

£ 50.41

-

-0.27 0.00

CC Asia Alpha Fd - Cls A Euro

Coupland Cardiff Funds Plc

(IRL)

-0.18 0.00

8.47

-

-0.25 0.00

Hermes Multi Strategy Credit Fund Class F Acc Hed £

1.01

1.01 0.00

JB BF Abs Ret EM-USD B

$ 117.84

-

-0.40 0.00

Golden Age (CHF) PA F

SFr 20.97

-

-0.21 0.00

Hermes Sourcecap EU Alpha Fund Class F Acc £

1.21

1.21 -0.01 0.00

JB BF Abs Ret-EUR B

€ 131.12

-

-0.20 0.00

Golden Age (EUR) PA

€ 14.23

-

-0.14 0.00

Hermes Sourcecap EU Alpha Fund Class F Dis £

1.19

1.19 -0.01 1.80

JB BF Abs Ret Pl-EUR B

€ 130.19

-

-0.27 0.00

Golden Age (USD) PA F

$ 19.79

-

-0.20 0.00

Hermes Sourcecap EU Alpha Fund Class R Acc €

2.73

2.73 -0.03 0.00

JB BF EM Corporate-USD B

$ 106.51

-

-0.28 0.00

Japan Small & Mid Caps PA

¥ 3089.00

-

-52.00 0.00

Hermes Sourcecap EX UK Fund Class F Acc £

1.28

1.28 0.00 0.00

JB BF EM Infl Link-USD B

$ 97.64

-

-0.96 0.00

Sh.T- Money Mkt EUR PA

€ 112.43

-

0.00 0.00

Hermes Sourcecap EX UK Fund Class R Acc €

2.78

2.78 -0.03 0.00

JB BF EM Inv Grade-USD B

$ 100.73

-

-0.33 0.00

Sh.T- Money Mkt CHF PA

SFr 129.38

-

0.00 0.00

Hermes UK Small & Mid Cap Fund Class F Acc £

1.42

1.42 -0.02 0.00

JB Emerging (EUR)-EUR B

€ 333.25

-

-2.09 0.00

Sh.T- Money Mkt GBP PA

£ 10.25

-

0.00 0.00

Hermes UK Small & Mid Cap Fund Class R Acc €

3.96

3.96 -0.07 0.00

JB Emerging (USD)-USD B

$ 405.88

-

-2.91 0.00

Sh.T- Money Mkt USD PA

$ 10.30

-

0.00 0.00

Hermes US SMID Equity Fund Class F Acc £

1.47

1.47 -0.03 0.00

JB BF Local EM-USD B

$ 293.82

-

-1.98 0.00

Sw.Fr.Bd(For) PA

SFr 23.67

-

-0.01 0.00

Hermes US SMID Equity Fund Class R Acc €

2.91

2.91 -0.08 0.00

JB BF Total Ret-EUR B

€ 99.35

-

-0.15 0.00

Sw.Fr.Credit Bd(For) PA

SFr 13.58

-

0.00 0.00

JB EF Abs Ret Eur-EUR B

€ 117.80

-

0.08 0.00

Tactical Alpha (CHF) PA

SFr 10.14

-

0.06 0.00

JB EF Euro Value-EUR B

€ 179.34

-

-1.86 0.00

Tactical Alpha (EUR) PA

€ 10.37

-

0.06 0.00

JB EF Japan-JPY B

¥ 15876.00

-

-92.00 0.00

Tactical Alpha (USD) PA

$ 14.87

-

0.09 0.00

JB EF Luxury B-EUR B

€ 209.31

-

-1.37 0.00

Technology PA

€ 13.64

-

-0.16 0.00

JB Ms EF Special Val. EUR/A

€ 132.33

-

-1.13 0.81

Technology PA

JB Strategy Balanced-CHF/B

SFr 154.03

-

-0.83 0.00

Wld Gold Expertise PAF

JB Strategy Balanced-EUR

€ 152.43

-

-0.90 0.00

Wld Gold Expertise PA

€

JB Strategy Balanced-USD/B

$ 132.14

-

-0.84 0.00

Wld Gold Expertise PA

SFr 96.60

-

-0.71 0.00

LO Selection

-

Impax Asset Management

(IRL)

£

2.16

-

-0.02

-

-

-0.59 0.00

INDIA VALUE INVESTMENTS LIMITED (INVIL)

$ 10.46

-

-0.04 0.00

www.invil.mu

Frk Euro S-Term Money Mkt Fd

€ 1012.44

-

0.00 0.00

Other International Funds

Frk Gbl Fundamental Strat Fd

$ 13.06

-

-0.13 0.00

IVI European Fund EUR

€ 15.46

-

-0.03 0.00

-0.01 1.04

Frk Global Conver.Securities

$ 11.48

-

-0.10 0.00

IVI European Fund GBP

£ 16.77

-

0.05 0.32

Global Opportunities A GBP

£

1.03

-

-0.01 0.58

Frk Global Growth

$ 14.16

-

-0.21 0.00

Pan European Opportunities I EUR €

1.50

-

0.00

Frk Global Gth & Val

$ 24.62

-

-0.34 0.00

Frk Global Sml Mid Cap Gth

$ 28.75

-

0.00 0.00

Frk Gold and Precious Mtls Fd F

$

3.87

-

-0.09 0.00

£

6.73

-

-0.07 0.00

Intrinsic Value Investors (IVI) LLP

-

Invesco

(LUX)

SFr 109.05

-

-0.31 0.00

Balanced (EUR) PA F

€ 119.36

-

-0.42 0.00

JB Strategy Inc-EUR/B

€ 159.03

-

-0.62 0.00

Conservative (CHF) PA F

SFr 104.74

-

-0.18 0.00

JB Strategy Inc-USD/B

$ 149.22

-

-0.61 0.00

Conservative (EUR) PA F

€ 111.28

-

-0.23 0.00

Global Allocation (GBP) PA F

£

9.79

-

-0.02 0.00

Growth (CHF) PA F

SFr 114.11

-

-0.45 0.00

Growth (EUR) PA F

€ 126.91

-

-0.60 0.00

Vantage 1500 (EUR) MA

€ 10.25

-

-0.02

-

Vantage 3000 (EUR) MA

€ 10.46

-

-0.05

-

Inc.Pt.RMB Dt.CNH PA

CNY 100.55

-

-0.03

-

Inc.Pt.RMB Dt.SH CHF PA

SFr 10.11

-

0.01

-

Inc.Pt.RMB Dt.SH EUR PA

€ 10.11

-

0.01

-

Inc.Pt.RMB Dt.USD PA

$ 10.14

-

0.01

-

Jenn. US Eq.Opp. USD PA

$

9.53

-

-0.20

-

Neubrg.Berman US Core PA

$ 14.32

-

-0.19 0.00

Sands US Growth PA

€ 13.85

-

-0.25 0.00

Sands US Growth PA

$ 16.75

-

-0.29 0.00

Will.Blair Gbl. Ldrs PA

€ 13.84

-

-0.15 0.00

Will.Blair Gbl. Ldrs PA

$ 12.82

-

-0.15 0.00

(IRL)

Absolute Return Bond B GBP Acc

1073.24

-

-0.33

High Yield Global Bond A GBP Inc

536.11

-

-2.28 3.70

-

High Yield Global Bond B GBP Inc

1114.06

-

-4.71 4.22

Investment Grade Global Bd A GBP Inc

560.76

-

0.18 2.34

Kames Global Equity Income B GBP Acc £ 10.95

-

-0.06 0.00

Kames Global Equity Income B GBP Inc £ 10.67

-

-0.06 2.46

-

-1.17 2.15

-

-0.65 2.64

$

7.26

-

-0.27 0.00

Invesco Management SA

Frk Real Return Fd F

$ 10.54

-

-0.02 0.00

Invesco Active Multi-Sector Credit Fund A €

Frk Strategic Income Fd

$ 14.67

-

-0.06 0.00

Invesco Asia Balanced A dist

Frk Technology

$ 10.45

-

-0.19 0.00

Invesco Asia Consumer Demand Fund A income $ 13.66

Frk U.S. Focus Fund

$ 15.94

-

-0.29 0.00

Invesco Asia Infrastructure (A)

$ 13.20

$ 23.41

-

-0.45 0.00

2.88

-

0.00 0.00

$ 15.58

-

-0.05 3.41

Kleinwort Benson (CI) Inv Man Ltd

-

-0.10 0.18

Regulated

-

0.02 1.53

Invesco Asia Opportunities Equity A $ 101.97

-

-1.21 0.00

Frk US Opportunities

$ 11.48

-

-0.24 0.00

Invesco Balanced Risk Allocation Fund A € 15.22

-

-0.05 0.00

Frk US Sml Mid Cap Gth F

$ 18.68

-

-0.41 0.00

Invesco Capital Shield 90 (EUR) A € 11.93

-

-0.02 0.00

Ennismore European Smlr Cos Hedge Fd

Frk Wrld Perspective Fd

$ 18.74

-

-0.24 0.00

Invesco Emerging Europe Equity Fund A $

8.12

-

-0.11

Other International Funds

Tem Africa

$ 11.11

-

-0.04 0.00

Invesco Emerging Local Currencies Debt A Inc $

8.52

-

-0.04 5.62

Tem Asian Sml Comp Fd

$ 38.52

-

0.15 0.00

Invesco Emerging Mkt Quant.Eq. A $ 10.77

-

-0.11 0.00

Tem BRIC

$ 13.72

-

-0.11 0.00

Invesco Energy A

$ 21.76

-

-0.84 0.00

Tem China

$ 22.43

-

0.17 0.00

Invesco Euro Corporate Bond Fund (A) € 17.24

-

0.01

Tem Eastern Europe

€ 18.06

-

-0.18 0.00

Invesco Euro Inflation Linked Bond A € 15.42

-

-0.06 0.00

Tem Emerging Mkts Sml Comp Fd $ 10.05

-

0.05 0.00

Invesco Euro Reserve A

€ 322.89

-

0.00 0.00

Tem Euroland

€ 17.33

-

-0.19 0.00

Invesco European Bond A

€

6.77

-

0.00 0.00

Tem European EUR

€ 19.03

-

-0.21 0.00

Invesco European Growth Equity A € 20.98

-

-0.31 0.00

Tem Frontier Mkts Fund

$ 18.58

-

-0.10 0.00

Invesco Global Absolute Return Fund A Class € 11.54

-

-0.06 0.00

Tem Growth (Euro)

€ 14.70

-

-0.26 0.00

Invesco Global Bond A Inc

5.65

-

0.01 1.10

Tem Korea

$

5.29

-

-0.04 0.00

Invesco Global Equity Income Fund A $ 59.16

-

-0.45 0.00

Tem Thailand

$ 21.57

-

0.05 0.00

Invesco Global Inc Real Estate Sec A dist $

9.53

-

-0.01 2.45

Invesco Global Inv Grd Corp Bond A Dist $ 11.99

-

0.01 3.13

Invesco Global Leisure A

$ 34.82

-

-0.62 0.00

Invesco Global Smaller Comp Eq Fd A $ 52.84

-

-0.70 0.00

$

-

-

Cap Group Em Mkts Fund B

SFr 80.24

-

-0.29 0.00

CC Asia Alpha Fd - Cls B USD

$ 12.17 12.17 0.02 0.00

Frontier Capital (Bermuda) Limited

Cap Group Em Mkts Fund B

€ 66.69

-

-0.31 0.00

CC Asia Alpha Fd - Cls C GBP

£ 12.02 12.02 0.03 0.00

Other International

CC Asia Alpha Fd - Cls I USD

$

9.61 0.02 0.00

Commercial Property-GBP Class

£ 71.42

-

-0.53

-

Invesco Global Structured Equity A $ 43.76

-

-0.15 0.94

CC Asian Evolution Fd. Cls A USD $ 14.82 14.82 -0.26 0.00

Global Real Estate-GBP C Class

£ 45.26

-

-0.50

-

Invesco Global Total Ret.(EUR) Bond Fund A € 13.18

-

-0.01 0.00

9.61

Balanced (CHF) PA F

-0.43 0.00

626.93

Frk Natural Resources Fd F

€ 12.40 12.40 0.03 0.00

-0.37 0.00

-0.90 0.00

1105.25

0.25 0.00

0.09 0.00

-0.29 0.00

-

-

Strategic Global Bond A GBP Inc

-0.43 0.00

-

-

-

Strategic Global Bond B GBP Inc

-

Smaller Cos Cls Four Shares (Est) € 13.76

9.80

$ 12.86

€ 113.46

Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 FCA Recognised

-

-

-0.25 0.00 -0.36 0.00

SFr 123.79

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

Ennismore European Smlr Cos NAV € 116.24

0.07

-

JB Strategy Inc-CHF/B

Kames Capital VCIC

Ennismore European Smlr Cos NAV £ 92.05

-

$ 20.71 SFr 12.48

PrivilEdge

Frk US Equity

Smaller Cos Cls Three Shares (Est) € 10.58

(LUX)

[email protected], www.jbfundnet.com Regulated

JB Strategy Growth-EUR

-0.01 0.99

NAV

Swiss & Global Asset Management

JB Strategy Growth-CHF/B

-

0.11 0.00

0.02 0.00

$

-

-

-

Global Energy (USD) PA F

1.39

Smaller Cos Cls Two Shares (Est) € 21.32

$ 19.23

-0.11 0.00

1.10

0.19 0.00

-

Gl Aggregate High Conv PA

-

€

-

-

0.00

€ 111.86

£

Smaller Cos Cls One Shares (Est) € 29.87

0.00

-

JB BF Abs Ret Def-EUR B

Global Opportunities I EUR

(CYM)

-

$ 10.17

2.79 -0.02 0.00

Global Opportunities I GBP

Euronova Asset Management UK LLP

€ 10.18

Fdmt.Eq.L/S SH Sd USD PA

2.79

-0.12 0.00

Regulated

Fdmt.Eq.L/S SH Sd EUR PA

Hermes Global High Yield Bond Fund Class R Acc €

-0.15 0.00

-0.04 0.00

-0.13 0.00

-0.21 0.00

-

-0.01 0.00

-0.04 0.00

-

-

-

-

-

€ 42.96

$ 14.89

$ 11.33

-

€ 10.09

Eurozone Small&Mid Caps PA

Generation Global (USD) PA F

€ 29.48

€ 17.59

Europe High Conviction PA

0.00 0.00

Frk Gbl Equity Strategies Fd

€ 11.92

-0.01 0.00

-

Frk European Sml Mid Cap Gth

Comgest Gth GEM PC DIS F

-

€ 105.54

-0.02 1.09

Comgest Gth Europe DIS F

€ 18.37

JB BF ABS-EUR B

-

-9.18 0.00

-0.05 0.00

Euro Resp.Corp. Fdt PA

1.16 0.00 0.00

1.72

-

-

1.16

$

Equinox Russian Opportunities Fund Limited $ 93.85

€ 11.95

Hermes Global High Yield Bond Fund Class F Acc £

Global Opportunities I USD

(GSY)

-0.01 0.00

Euro Inflation-Lk Fdt PA

-0.14 0.00

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

Equinox Fund Mgmt (Guernsey) Limited

-

-

-0.01 0.96

4.04 0.00

€ 12.38

-

-

-

-0.01 0.00

Euro Government Fdt PA

€ 17.61

2.42

€ 428.03

-

SFr 12.85

€

(IRL)

€ 12.97

Generation Global (EUR) PA F

European Opportunities A EUR

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

-0.01 0.00

Euro Credit Bd PA F

Generation Global (CHF) PA F

-

-0.01 1.31

-0.45 0.00

-

1.09 -0.02

-

-

$ 17.64

3.50 -0.07 0.00

3.09

SR 13.30

-0.01 0.00

Euro BBB-BB Fdt PA

1.09

$

Saudi Arabia Equity Fund

-0.01 0.00

-

3.50

$ 31.24

-0.21 0.00

-

£ 10.92

Hermes Global ESG Equity Fund Class F Acc £

Frk Brazil Opportunities Fd

-

€ 12.40

Euro BBB-BB Fdt PA

Hermes Global Equity Fund Class R Acc €

Frk Biotech Discovery

$ 17.39

Euro BBB-BB Fdt PA

0.00 0.00

-1.28 0.76

Frk Mutual Gbl Disc

-0.01 0.00

-0.01 0.00

European Opportunities I USD

0.00

-

-

-0.01 1.56

0.00

SFr 15.83

-

-0.01 1.34

-

-0.03 0.00

Euro BBB-BB Fdt PA

$ 10.97

-

-

-

SFr 10.90

-

-

9.61

Gbl.5B Fdmt SH (USD) PA

1.96

-

$

Gbl.5B Fdmt (CHF) PA

2.48

$ 29.93

-0.03 0.00

Emerg.Loc.Cur.Bd.Fdt PA

1.44 -0.02 0.00

£

Middle East & Developing Africa Fund (Final) $ 19.81

-0.01 0.00

-

2.76 -0.05 0.00

Class A Acc

-0.20 0.00

-

1.44

-

-

9.31

€ 11.14

2.76

-

€ 22.27

SFr

Emerg.Loc.Cur.Bd.Fdt PA

Hermes Global Equity Fund Class F Acc £

-0.02

Frk Mutual European EUR

-0.01 0.00

Hermes Global Emerging Markets Fund Class R Acc €

-0.02

-0.15 0.00

-

0.03 0.00

-

-1.05 0.00

8.28

-0.01 0.00

-

-

-0.04 0.00

Emerg. Loc.Cur.&Bds DH (CHF) PASFr

-

1.87

-

-

-

1.77

€ 16.04

7.17

€ 11.08

€

$ 69.94

$

SFr 26.92

$

Frk Mutual Euroland Fd

-0.03 0.00

Emerg. Eq. Risk Par.(USD) PA

Gbl.5B Fdmt (EUR) PA

Env Mkts (Ire) USD A

Frk Mutual Beacon

-

Gbl.Gvt.Fdt.SH (CHF) PA

Env Mkts (Ire) Euro A

-0.07 0.00

8.27

1.18 -0.01 0.00

-0.32 0.00

-

€

2.98 -0.04 0.00

-0.18 3.52

6.59

-0.07 0.00

Emerg.Eq. Risk Par.(EUR) PA

1.18

-

$

-0.07 0.00

-

2.98

-

Frk MENA Fund

-

$ 12.68

Hermes Global Emerging Markets Fund Class F Acc £

$ 33.15

-0.04

€ 12.70

Emerg. Consumer (USD) PA

Hermes Asia Ex-Japan Equity Fund Class R Acc €

$ 17.75

-

Emerg. Consumer (EUR) PA

0.00 0.00

Tem Global Total Return

$ 10.24

-0.07 0.00

0.02 0.00

Tem Global Smaller Cos

Frk K2 Alt Strat Fd

-

-

Env Mkts (Ire) Stl A

-0.07 0.00

SFr 12.63

-

Norfolk House, 31 St James's Square, London, SW1Y 4JR FCA Recognised

-

0.00 0.00

Emerg. Consumer (CHF) PA

€ 10.18

-0.08 4.83

€ 13.88

-

SFr 24.55

-0.12 1.61

Frk European Growth

$ 14.41

Gbl.Gvt.Fdmt.(CHF) PA

-

-0.16 0.00

0.00 0.00

Convertible Bd Asia PA F

Gbl.Gvt.Fdmt PA

-

-

-

1.48 -0.01 0.00

9.48

€ 17.47

€ 14.33

1.28 0.01 0.00

$

Frk Euroland Fund

0.00 0.00

Convertible Bd Asia PA F

1.48

$ 14.11

-

-0.06 0.00

-

1.28

Tem Global Income

$ 51.80

-

SFr 13.52

Hermes Asia Ex-Japan Equity Fund Class F Acc £

Tem Global High Yield Fd F

Tem Latin America

€ 16.77

Convertible Bd Asia PA F

Hermes Active UK Inflation Fund Class F Acc £

€

Regulated -

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

European Opportunities I GBP

-

-0.08 0.00

Hermes Investment Funds Plc

European Opportunities I EUR

Ennismore Smaller Cos Plc

7.73

7.23

£

-

c/o 1901 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Fund information, dealing and administration: [email protected]

NAV

-0.06 0.00

€

-

Other International Funds

(LUX)

-0.18 0.25

-

-0.12 0.00

DGT - Consumer £ R Class

0.00 0.00

-

-0.11 0.22

-0.01 4.62

-

Global Convertible A Hdg EUR(Dis) F € 15.47

-

-0.01 1.05

0.78

-0.11 0.00

-

-

Vietnam Property Fund (VPF) NAV $

-0.09 0.27

-

$ 22.36

Global Convertible B Hdg CHF (Cap) FSFr 24.74

-

0.33 0.00

-

Global Convertible B Hdg (Dis) F

Global Convertible A Hdg CHF (Dis) FSFr 22.43

6.52

0.08 0.00

Global Convertible Hdg A (Cap) F $ 18.79

-0.02 2.21

€

-

-0.07 0.00

-0.04 5.32

€ 11.17

-

-

-

Frk Euro High Yield

(FRA)

-0.10 0.00

-0.29 0.00

Global Convertible B Hdg GBP (Cap) F £ 14.95

-

Frk Euro Gov. Bond

(LUX)

-

-

-0.10 0.00 -0.06 0.24

9.93

-0.0392 0.00

-

139.35

-

6.72

-

€ 17.88

Heartwood Caut Multi Asset B Acc

$ 22.70

Global Convertible A Hdg GBP(Dis) F £ 12.72

$

$ 12.5716

SFr 21.48

Cap Group Japan Equity B

(IRL)

Convertible Bd P A

Emerg.Loc.Cur.Bd.Fdt PA

Haussmann Cls A

$

-1.22 0.00

3.49

(LUX)

Frk High Yield

-

Vietnam Growth Fund (VGF) NAV $ 23.25

-32.36 0.00

Frk Gbl R.Estate (USD) A Dis

£ 129.47

Vietnam Enterprise Inv. (VEIL) NAV $

-

Global Convertible B Hdg EUR (Cap) F € 16.78

DGT - Consumer £ I Class

Dominion Fund Management Limited

€ 2364.52

11 Rue Aldringen, L-1118 Luxembourg 00 352 468193626 FCA Recognised

Other International Funds

Class A Dis

Dominion Fund Management Limited

Star Capitol America D

Jefferies Umbrella Fund

Haussmann

8A rue Albert Borschette / L-1246 Luxembourg www.franklintempleton.co.uk UK freephone 0 800 305 306 FCA Recognised

Gbl RealEstate Sec. IX

Cap Group Global Equity B Cap Group Japan Equity B

(LUX)

-31.38 0.00

Cap Group Global Equity B

JPMorgan Asset Management (Europe) S.à. r.l. (FRA)

-

-

-0.15 0.00

-13.93 0.00

£

¥ 783.01

-

-

Greater China - GBP

Frk Japan Fd

€ 18.95

$ 1675.38

6 route de Trèves L - 2633 Senningerberg - Luxembourg FCA Recognised

-0.0336 1.34

Comgest Magellan

-4.72 0.00

-0.17 0.00

0.0635 0.00

17 square Edouard VII - 75009 Paris FCA Recognised

0.14 0.00

-

-

-

Comgest SA

-

Invest AD - Emerging Africa Fund $ 1232.70

$ 10.51

-

-13.18 0.00

Invest AD - Iraq Opportunity Fund $ 74.23

Greater China - USD

€ 24.9585

-

-0.10 0.00

-

$ 10.7798

SFr 5682.91

-

-

Gbl RealEstate Sec. I

Comgest Europe F

6.85

£ 71.51 71.51 -0.94

Europ.RealEstate Sec. IX

-20.31 0.00

$

€ 72.97 72.97 -0.82

-0.01 0.00

-

-0.09 0.00

Commodities (USD) PA

GBP Inst. Accumulation Shares

-0.22 0.00

-0.09 0.00

Other International Funds

EUR Inst. Accumulation Shares

-

-0.65 0.00

-

-0.23 0.64

-

-0.44 0.00

-

6.70

-0.31 0.00

€ 14.28

-

$ 120.08

€

-

$ 15.09

€ 80.38

Alternative Beta PA F

Commodities (EUR) PA

-

EUR Accumulating Share Class

Alternative Beta PA F

Client services: +971 2 692 6101 [email protected]

£ 13.01

USD Accumulating Share Class

-0.66 0.00

-

£ 17.70

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

-0.29 0.00

-

6.65

GBP Distributing Share class

Franklin Templeton International Services Sarl (IRL)

-

SFr 120.04

SFr

GBP Accumulating Share Class

-0.42 0.00

$ 15.21

Alternative Beta PA F

Commodities (CHF) PA

Invest AD - GCC Focus Fund

4.22

-

Invest AD

Asian Market Leaders - GBP

-

$ 3973.23

7.92

Genesis Asset Managers LLP Emerging Mkts NAV

(LUX)

-

$ 52.02 54.62 -0.48

$ 31.95

Comgest Asia F

www.loim.com Regulated

-

USD Inst. Annual Distribution Shares $ 74.89 78.63 -0.44

Frk India

17 square Edouard VII - 75009 Paris, www.comgest.com FCA Recognised

Lombard Odier Funds (Europe) S.A

0.00 0.00

€ 12.12

USD Inst. Accumulation Shares

0.0483 1.56

Comgest SA

-0.22 0.00

-

1.68

$ 17.77

USD Accumulating Share Class

-

(LUX)

-

$

Absolute Ret Bond (USD) PA

Dodge & Cox Worldwide Funds plc-Global Stock Fund

The EFG-Hermes Egypt Fund

6, route de Trèves, L-2633 Senningerberg,Luxembourg Capital International funds are part of The Capital Group Companies www.thecapitalgroup.com FCA Recognised

$ 13.08

Invesco Jap Eqty Core A

Absolute Ret Bond (EUR) PA

Hamon Investment Group

Other International Funds

Capital International funds services

Invesco Global Select Equity A

-0.27 0.11

-

-

-0.0190 0.00

Dealing Daily

-

Bache Global Series - Alternative Benchmark Commodity Index

€ 20.40

-

$ 50.19

Contact +442075187970,[email protected],www.fourwindscm.com Regulated

Dodge & Cox Worldwide Funds plc-International Stock Fund

$ 1.3970

Invesco PRC Equity A

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

-

-0.25 0.00

-0.0180 0.00

Global USD Growth Strategy

Lombard Odier Funds

Generali International Limited

-

-

-

0.06 0.00

-0.01

$ 16.90

£ 1.7570

-0.48 0.00

-0.04

-0.01

-0.0050 1.64

Aggressive Strategy

-

-

0.0010 2.30

-

-

-

9.79

-

£ 1.4730

$ 17.48

£ $

£ 1.1140

Growth Strategy

$ 26.64

£ 10.41

USD Accumulating Class

Conservative Strategy

Invesco Korean Equity A

GBP Distributing Class (H)

9.69

Lloyds Multi Strategy Fund Limited

Invesco Japanese Equity A

GBP Distributing Class

DIFC, The Gate Building, West Wing Level 6, PO BOX 30727, Dubai UAE Contact: Telephone + 971 4 363 4029 Email [email protected]

Cap Group Japan Equity BD

GYS Investment Management Ltd

Dodge & Cox Worldwide Funds plc - Global Bond Fund

EFG Hermes

Cap Group Japan Equity B

Invesco Global Health Care A

-1.12 0.00

€ 18.9618

European Real Estate Securities

Growth Funds

Bond Asia ex-Japan P Cap*

Invesco Continental Eurp Small Cap Eqty A $ 187.11

(LF) FOF Real Estate €

-

(LUX)

-

-0.14 6.21

-0.07 0.00

Crediinvest SICAV Big Cap Value € 16.13

Regulated

Tel: +41 22 360 94 00 www.caceis.ch Dynamic Ratchet Bond Fund-Japan ¥ 6991.00

-

$

4.93

Cohen & Steers SICAV

CACEIS (Switzerland) SA

€ 93.80

-0.02 0.00

-

-0.51 0.00

www.dsmsicav.com Regulated

UK Agricultural Class A

$ 111.68

Parvest

0.10 2.10

GAM Star Global Selector USD Acc F $ 14.74

-

DSM Capital Partners Funds

Aspect Diversified Trends EUR

BNPP L1 Bd World Plus P Dis*

-

Invesco Emerging Markets Equity A $ 39.00

-0.27 2.09

Aspect Diversified Trends USD

BNP Paribas L1

$ 27.67

-0.12 0.38

-

Managed Sub Funds

0.00 0.00

Invesco Bond A

-0.07 0.00

€ 18.17

-0.72 0.00

-

-0.54 0.59

-0.14 0.00

-

Euro Equity Index Tracking

-0.79 0.00

BNP Paribas InstiCash GBP P Cap* £ 131.88

-

-

-

Index Tracking Sub Funds

-

0.00 0.00

$ 102.72

GAM Star Global Rates USD Acc F $ 12.23

GAM Star Japan Eqty USD Acc F $ 12.23

Other International Funds

-

-

Invesco ASEAN Equity A

-0.06 0.00

GAM Star Keynes Quant Strat USD Acc F $ 11.47

(LUX)

£ 114.01

BNP Paribas InstiCash EUR P Cap* € 118.76

-0.01 0.00

-

-0.62 0.00

-

SFr 107.51

BNP Paribas Insticash

-

-2.47 0.00

-

Aspect Diversified CHF

5 Aldermanbury Square, EC2V 7BP London Telephone: +44 207 063 7783 FCA Recognised

0.83

€ 10.97

-

(IRL)

Aspect Diversified GBP

(LUX)

€

(LF) FOF Dynamic Fixed Inc €

Franklin Templeton Investment Funds

-1.51

BNP Paribas Investment Partners

(LF) FOF Gl Emerging Mkts €

Regulated

-

0.02 0.00

-0.03 0.00

-

EUR Accumulating Share Class

€ 223.88

-

-

GAM Star Global Conv Bond USD Acc F $ 11.16

3.60

CMI Japan Enhanced Equity F

Regulated

Gl Sukuk Fund - Share class B Acc £ 1073.34 1073.34 0.06 0.00

-0.25 0.00

$

-48.00 2.46

Braemar Group PCC Limited

Gl Sukuk Fund - Share Class A Acc $ 1210.30

-

Global Bond USD

Single Country Equity Sub Funds

Other International Funds

-

GAM Star GAMCO US Equity Acc F $ 13.42

2.79

CMI Continental Euro Equity

0.45

-0.07 0.10

0.00 0.00

€

-0.03 0.00

-

0.00 3.75

-

-0.01 0.00

-

EU Multi-Strategy Managed

Regional Equity Sub Funds

$ Income Fund - Share Class V DisA$ 1027.55

-

6.66

-

1.19

(IRL) Styne House, Upper Hatch Street, Dublin 2 Tel: 00 353 1603 6460 FCA Recognised

CMI Global Network Fund (u)

0.10 0.00

2.62

$

1.34

€

Findlay Park Funds Plc

-0.14 0.00

-

£

Invesco Asian Equity A

€

(LF) FOF Equity Blend €

5.15 -0.01 0.00

-

$ Income Fund - Share Class M Acc € 1014.98

Invesco Stlg Bd A QD F

(LF) FOF Balanced Blend €

4.78

€ 125.91

0.18 0.00

-0.08 0.00

Euro New Zealand Dollar

£

BlueBay Inv Grd Libor Fd B

-

-

GAM Star Flexible Gbl Port GBP Ac £ 12.36

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

UK Multi-Strategy Managed

-0.52 8.93

-

0.0000 -0.18

0.10 0.00

5.21 -0.03 0.00

-

BlueBay Struct.Fds: High Inc Loan Fd € 190.18

-

-0.07 0.00

-

4.84

Cheyne Global Credit Fund

BlueBay Asset Management LLP

$ 60.5980

-

GAM Star European Eqty USD Acc F $ 21.85

Heartwood Wealth Management Limited

BLK Intl Gold & General

0.0000 0.21

US Dollar Class

GAM Star Emerg. Market Rates USD Acc F $ 11.44

-0.20 0.00

Regulated 8.49 0.00

-

0.00 0.00

-

Crediinvest SICAV International Value € 210.50

(JER)

-

£ 52.5190

-

$

Raffles-Asia Investment Company $

£ 1031.50

0.0170 2.68

Sterling Class

1.22

€ 11.49

Global Multi-Strategy Managed

China A-Share A GBP Inc

Blackrock UK Long Lease

-

$

(LF) Greek Corporate Bond €

International Insurances

Schwab USD Liquid Assets Fd

0.29 3.95

0.0000 0.00

NZ$ 208.8090

(LF) Income Plus $

0.00 0.00

Regulated

-

0.0090 1.63

-

-0.02 0.16

Regulated

£ 38.43

-

€ 52.7220

(IRL)

-

-0.29 1.08

BlackRock UK Property

A$ 172.9140

Australian Dollar

Invesco Global Asset Management Ltd

-

EM Mkts Corp.Debt USD F

$ Income Fund - Share Class G Acc £ 1074.61

0.10 0.48

1.75

23 route d'Arlon, L-8010 Strassen Lux 00 352 3178311 FCA Recognised

0.13

-

4.40

-0.21 0.00

0.13 0.00

GAM Star Emerging Asia USD Class ACCU $ 12.72

Lloyds Money Fund Limited

£

-

-

-0.45 0.00

0.00 0.00

£

BlueBay Inv Grd I Euro Agg Bd Fund € 147.03

-

-

0.0030 2.04

-

Latin America A-GBP

-0.25 1.57

$ Income Fund - Share Class D Dis $ 1006.70

€ 15.60

$ 87.02

-

India Focus A-GBP

-

$ Income Fund - Share Class C Acc $ 1006.43

(LF) Greek Government Bond €

Invesco USD Reserve A

0.0030 2.04

£ 1.2330xd

0.00 1.01

Ashmore SICAV Local Currency Fund $ 88.54

0.16 0.00

0.08 1.43

-

Monthly Share

-

-0.23 0.00

-

-

Lloyds Gilt Fund Quarterly Share £ 1.2830

-0.60 0.00

0.27

-0.12 0.00

$ Income Fund - Share Class B Acc $ 1155.29

GAM Star Dynamic Gbl Bd USD Acc H $ 10.60

-0.33 0.00

-

£

-

0.15 0.00

0.03 0.00

-

Global Telecomms A-GBP

-

-

-

$ 32.40

-0.46 0.00

€ 172.51

$ Income Fund - Share Class A Acc $ 1136.17

€ 14.32

$ 21.70

Invesco US Value Eq Fd A

-

BlueBay Inv Grd B Euro Gov Bd Fund € 146.47

(LUX)

(LF) Eq Mena Fund €

Invesco US Structured Equity A

$ 28.86

BlueBay Inv Grd B - EUR

BLME Sharia'a Umbrella Fund SICAV SIF Regulated

-0.29 0.00

Davis Global A

-1.43 0.07

BLME Asset Management

-

0.00 0.89

-1.19 0.07

-

0.00 4.23

GAM Star Discretionary FX USD Acc F $ 11.85

-

-

$ 685.71

-

-0.02 0.00

£ 10.03

-

Far East

GAM Star Cred Opportunities GBP Acc £ 12.31

-

Cap Group Global Bond BD

Ashmore SICAV Global Small Cap Equity Fund $ 128.74

Regulated

-0.01 0.00

1.05

Lloyds Gilt Fund Limited

0.00 0.00

Ashmore SICAV Global Equity Fund $ 114.88

(LUX)

-

€

-0.0590 1.50

0.01 2.73

-

9.50 0.00

0.15 0.00

Atlantas Sicav

€ 11.73

(LF) Global Equities €

-

0.23

-

0.47 0.00

-

(LF) Global Bond Fd €

0.99

Invesco UK Investment Grade Bond A £

£

€ 296.42

-

Aspect Diversified EUR

0.01 0.00

Global Technology A-GBP

Cedar Rock Capital Fd Plc

-

-2.59 0.00

-

-0.56 0.00

10.73 0.00

€ 139.81

-

3.20

-

-

€ 330.35

$ 374.08

GAM Star Cont European Eqty GBP Acc F £

-

$ 39.82

£ 355.85

BlueBay High Yield Corp Bd B

Aspect Diversified USD

-0.02 0.00

£ 6.7320

Davis Value A

Cedar Rock Capital Fd Plc

BlueBay High Yield B - EUR

Other International Funds

-

0.0030 3.60

UK

-0.01 0.00

-0.68 1.09

-0.79 8.76

Aspect Capital Ltd (UK)

1.30

-0.40 0.00

-

-

-1.25 1.10

-0.73 9.08

€

-

£ 29.32

$ 19.39

$ 35.20

-

-

(LF) Eq Flexi Style Greece €

Invesco UK Eqty Income A

Cap Group Global Bond B

Latin America A USD Inc H

-

$ 92.84

0.20 0.48

-0.01 0.00

11.02 0.00

Ashmore SICAV Emerging Market Total Return Fund $ 87.85

EM Mkts Loc.Ccy Bd USD F

-

-

-

Ashmore SICAV Emerging Market Frontier Equity Fund $ 160.56

$ 97.81

GAM Star China Equity USD Acc F $ 22.07

-

1.42

Artisan Partners Global Funds plc -0.09 0.00

0.00 0.00

£ 1.5020

Crediinvest SICAV Spanish Value € 248.11

Regulated

-

-

-0.2500 0.02

Sterling Bond

£

$ 354.98

(IRL) Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland Tel: 44 (0) 207 766 7130 FCA Recognised 7.60

0.79

-0.17 0.00

Global Real Asset Securities

Cedar Rock Capital Fd Plc

Artisan Partners Global Funds PLC

Artisan Emerging Markets I USD Acc $

€

-

0.02 0.00

-0.19 0.00

BlackRock

(LF) Eq Emerging Europe €

Invesco Pan European Structured Equity A € 14.98

-

-

-0.10 1.17

-

€ 15.65

£ 14.23

-

-0.05

0.00 0.51

India Fund - Class A GBP Inc

£ 23.22

-

-

-0.01 0.00

Regulated

Russia A GBP Inc F

£ 10.16

£ 15.5000

-

Cedar Rock Capital Limited

(LUX)

GAM Star Cautious GBP Acc

-0.0560 1.30

North American

-

-5.52 0.62

Barings (Luxembourg)

-0.03 0.00

-0.33 0.00

-

0.66

-0.04 6.49

0.14 0.00

-

-

£ 4.2750

1.19

-

-

RON 15.99

(LF) Cash Fund (RON)

Invesco Pan European Small Cap Equity A € 17.72

0.0013 5.12

International

£

-

5.70

0.00 0.00

-

Global Industrials A-GBP

6.76

£

-

£ 0.8901xd

Global Inflation-Linked Bd A-GBP-Hdg £

£ 570.84

(IRL)

$ 12.40

-0.06 2.12

-0.0710 1.00

High Income

0.00 0.00

Hong Kong China A GBP Inc

Baring International Fd Mgrs (Ireland)

GAM Star Cat Bond USD Acc

-

-0.0010 3.36

-

-

-0.14 0.00

-

-0.01 0.00

Invesco Pan European High Income Fd A € 13.72

-

£ 7.4570

-0.07 5.14

-0.03 6.05

£ 13.82

-

-0.37 0.00

0.0400 2.49

€ 1.6970

-0.01 0.77

-

MENA A GBP Inc F *

1.40

-

-

Lloyds Investment Funds Limited

European

-1.81 0.00

-

High Yield Bond A GBP Hedged Inc H £

(LF) Cash Fund €

Invesco Pan European Equity A EUR Cap NAV € 17.33

£ 12.3800

Lloydstrust Gilt

Euro High Income

-

9.15

-0.30 0.33

-0.33 0.00

0.00 0.00

$ 128.66

Emerging Opportunities A GBP Inc H £ 19.38

-0.15 0.45

-

-0.19 0.00

-

0.00 0.00

CATCo Re Fund Ltd Series A

-

GAM Star Cap.Appr.US Eqty USD Inc F $ 16.89

-

-

-0.54 0.67

-

0.01 0.00

7.88

Invesco Nippon Small/Mid Cap Equity A ¥ 991.00

0.52

-0.08 0.00

£ 12.13

-

Invesco Latin American Equity A $

£

-

Glb Resources A GBP Inc H

(LF) Balanced - Active Fund (RON)RON 15.88 €

-

-4.00 0.00

Global Health Care A-GBP

-

Glb Emerging Markets A GBP Inc H £ 19.42

-0.06

-

-

9.54

Emerging Mkt Debt LC A GBP Hedged Inc £

-

Invesco Japanese Value Eq Fd A ¥ 1142.00

-

£ 45.08

Eastern Europe A GBP Inc

£ 10.11

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

7.70

Cap Group Global Bond B

-

-0.01 0.00

GAM Star Balanced GBP Acc

-19.00 0.00

Invesco Gbl R/Est Secs A GBP F F £

SFr 18.80

£ 42.85

-

-0.01 0.00

-

Invesco Global High Income A NAV $ 12.64

Cap Group Global Bond B

£ 70.67

Crediinvest SICAV Fixed Income Usd $ 10.67

-

€

Invesco Japanese Equity Adv Fd A ¥ 3492.00

-0.28 0.00

-

Australia A GBP Inc

-0.02 0.00

1.31

(LF) Absolute Return €

-0.56 0.00

-22.22 0.35

£ 12.12

Asia Growth A GBP Inc H

-

0.09 0.00

-

-

Cap Group Glb H Inc Opp BD

-0.70 0.94

Crediinvest SICAV Fixed Income Eur € 10.86

-0.08 0.76

-

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

$ 49.36

-

-0.22 0.00

-

0.00 0.00

-

GAM Star Asian Eqty USD Ord Acc F $ 14.00

-0.13 0.00

Invesco India Equity A

GAM Star Worldwide Eqty USD Acc F $ 3264.53

-

£ 119.13

-

Regulated

GAM Star Asia-Pacific Eqty USD Acc F $ 11.92

-0.13 0.00

-

GAM Star US All Cap Eqty USD Acc F $ 13.68

$ 33.47

ASEAN Frontiers A GBP Inc

Crediinvest SICAV Money Market Usd A $ 10.02

Eurobank Fund Management Company (Luxembourg) S.A. (LUX)

-

0.00 0.00

Cap Group Glb H Inc Opp B

(IRL) Northern Trust, George Court 54-62 Townsend Street, Dublin 2 Rep of Ireland 020 7214 1004 FCA Recognised

0.00 0.00

GAM Star Fund Plc

Offer D+/- Yield

4.81

0.05 0.27

Bond Funds

Baring International Fd Mgrs (Ireland)

-

Georges Court, 54-62 Townsend Street, Dublin 2 + 353 1 6093927

Bid

$ 46.38

-

-0.13 0.00

0.00 3.42

Crediinvest SICAV Money Market Eur I € 11.23

GAM Fund Management Ltd

Fund

Invesco Greater China Equity A

-

-

-

www.creditandorra.com FCA Recognised

(IRL)

Offer D+/- Yield

0.42

€ 27.01

0.46

(LUX)

Bid

3.98

Cap Group Glb H Inc Opp B

£

Crèdit Andorrà Asset Management

Fund

£

Cap Group Glb H Inc Opp B

Sterling Bond F

Offer D+/- Yield

Global Financial Services A-GBP £

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

-

Artemis Pan-Euro Hdg EUR

£ 198.23

-0.10 0.00

€ 11.01

-

Artemis Gbl Hedge Fd Ltd USD

Artemis Pan-Euro Hdg GBP

-

-

Artemis Fund Managers Ltd -

$ 13.09

Cap Group Em Mkts Debt B

Regulated £ 56.05

6.84

Cap Group Em Mkts Debt B

FCA Recognised

Artemis Gbl Hedge Fd Ltd GBP

-0.05 0.00

Other International Funds

Dynamic Emerging Markets A GBP Acc F £

Other International

-

Income Funds

-

Amundi Funds

SFr 11.14

BNP Paribas BNP PARIBAS GLF USD-DIST-USD $

AC Risk Parity 7 Fund (EUR A)

9.99 -0.15 0.00

-

Equity Japan Small Cap P Cap*

Bid

Invesco Gold & Precious Metals A $ FCA Recognised

9.99

-

Cap Group Em Mkts Debt B

Fund

€

$ 82.15

* RDR-compliant share class

Offer D+/- Yield

CC Japan Alpha Fd - Cls A Euro

Equity Best Selection Europe ex-UK P Cap* € 120.27

Cap Group Gbl Abs Inc Grow B

Bid

CC Asian Evolution Fd. Cls B GBP £ 13.95 13.95 -0.25 0.00

Equity Brazil P Cap*

Cap Group Em Mk Tot Opp B

Fund

-0.05 0.63

-0.06 0.00

www.alceda.lu FCA Recognised

Offer D+/- Yield

GAM Limited

-

Alceda Fund Management S.A.

Bid

CC Asian Evolution Fund - Cls C USD Acc $ 16.65 16.65 -0.29 0.00

ACPI Balanced UCITS Fund USD Retail $ 14.08

-0.25 0.00

Fund

(GSY)

M & G (Guernsey) Ltd

(GSY)

Regulated The M&G Offshore Fund Range

Kleinwort Benson Elite PCC Ltd

American Fund

155.35 161.82 -2.77 0.00

Corporate Bond

1332.94 1374.16 4.33 3.25

Global Basics

2343.35 2440.99 -24.05 0.00

Global Leaders

3251.93 3387.42 -41.13 1.32

Global High Yield Bond

986.99 1017.51 -4.71 4.77

Global Macro Bond Fund

11166.84 11512.21 2.97 0.71

Optimal Income Fund

143.65 149.64 -0.12 2.64

Recovery Fund Limited 'A' Participating Shares

10446.09 10881.34 -159.33 0.59

Recovery Fund Limited 'I' Participating Shares

10496.49 10933.85 -160.74 1.52

Strategic Corporate Bond Fund

134.36 139.95 0.30 3.16

UK Growth

1465.54 1526.61 -21.40 1.09

EUR Currency B EUR Acc Non-Rpt €

0.98

-

0.00 0.00

EUR Fixed Income B EUR Income Rpt €

1.01

-

0.00 0.00

GBP Currency B GBP Acc Non-Rpt £

0.99

-

0.00 0.00

International Bond B GBP Acc Non-Rpt £

0.92

-

-0.01 0.00

International Equity B GBP Acc Non-Rpt £

1.26

-

0.00 0.00

Multi Asset Balanced B EUR Acc Non-Rpt €

1.09

-

0.00 0.00

Multi Asset Balanced B GBP Acc Non-Rpt £

1.11

-

-0.01

Multi Asset Balanced B GBP Income Rpt £

1.39

-

0.00 0.26

Multi Asset Balanced B USD Acc Non-Rpt $

1.10

-

0.00 0.00

Multi Asset Balanced C GBP Income Rpt £

1.43

-

0.00 1.13

Multi Asset Conservative B EUR Acc Non-Rpt €

1.03

-

0.00 0.00

Multi Asset Conservative B GBP Acc Non-Rpt £

1.06

-

0.00 0.00

Multi Asset Conservative B GBP Income Rpt £

1.05

-

0.00 1.83

Multi Asset Conservative B USD Acc Non-Rpt $

1.04

-

-0.01 0.00

Multi Asset Growth B EUR Acc Non-Rpt €

1.12

-

-0.01 0.00

Multi Asset Growth B GBP Acc Non-Rpt £

1.15

-

-0.01 0.00

Multi Asset Growth B GBP Income Rpt £

1.16

-

0.00 0.00

Multi Asset Growth B USD Acc Non-Rpt $

1.13

-

-0.01 0.00

Sterling Fixed Income B GBP Income Rpt £

0.96

-

0.00 3.86

Em.Mk.Debt Fd.US Dollar

$ 120.40

-

-0.56 0.00

USD Currency B USD Acc Non-Rpt $

0.97

-

0.00 0.00

Em.Mk.Debt Fd.Yen 1

¥ 10213.00

-

-48.00 0.00

Em.Mk.Debt Fd.Yen 2

¥ 14882.00

-

-94.00 0.00

Em.Mk.Debt Fund Yen 3

¥ 10238.00

-

-49.00 0.00

-

MFS Investment Funds

(LUX)

FCA Recognised

★

Friday 12 December 2014

25

FINANCIAL TIMES

MANAGED FUNDS SERVICE Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Fund

Bid

Offer D+/- Yield

Fund

Bid

Em.Mk.Debt Fund Yen 4

¥ 14882.00

-

-94.00 0.00

Mir. - Glb High Yield Bds AH CHFSFr 107.71

-

-0.51

-

Em.Mk.Eq.Fund Euro

€ 108.70

-

-1.52 0.00

Mir. - Glb High Yield Bds AH EUR € 108.11

-

-0.51

-

The National Investor (TNI)

Em.Mk.Eq.Fund Sterling

£ 101.12

-

-1.52 0.00

Mir. - Glb High Yield Bds AH GBP £ 108.87

-

-0.51

-

www.tni.ae

YMR N Growth

Em.Mk.Eq.Fd.US Dollar

$ 103.07

-

-1.51 0.00

Mir. - Glb Eq High Income A CHF SFr 105.38

-

-0.68

-

Other International Funds

Yuki Asia Umbrella Fund

Em.Mk.Loc.Ccy Debt Fd.FC

¥ 9560.00

-

-68.00 6.12

Mir. - Glb Eq High Income A EUR € 106.85

-

-0.78

-

Em.Mk.Loc.Ccy Debt Fd.FD

¥ 11418.00

-

-101.00 5.54

Mir. - Glb Eq High Income A GBP £ 103.92

-

-0.85

-

Em.Mk.Loc.Ccy Debt Fd II

$ 93.80

-

-0.79 0.00

Mir. - Glb Eq High Income A USD $ 103.33

-

-0.82

-

Northwest Investment Management (HK) Ltd

Permal Investment Mgmt Svcs Ltd

Platinum Capital Management Ltd

Schroder Property Managers (Jersey) Ltd

www.permal.com Other International Funds

Other International Funds

Other International Funds

Gb.Conc.Eq.Fd.Euro

€ 243.23

-

-3.19 0.00

Mir. - Glb Strat. Bd A USD

$ 105.51

-

-0.30 0.00

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

£ 160.55

-

-2.25 0.00

Mir. Opp.- Activ.Strategies I

$ 102.70

-

2.70

Northwest $ class

$ 2258.30

-

84.38 0.00

Gb.Conc.Eq.Fd.Sterling

£ 243.67

-

-3.42 0.00

Northwest Warrant $ class

$ 1852.87

-

172.36 0.00

Investment Holdings N.V.

$ 5469.77

-

0.00 0.00

Gb.Conc.Eq.Fd.US

$ 191.15

-

-2.62 0.00

Macro Holdings Ltd

$ 4167.98

-

0.00 0.00

Gb.Eq.Hdg Fd.Euro IRE T

€ 171.42

-

-2.27 0.00

Fixed Income Holdings N.V.

$ 410.53

-

0.00 1.95

Gb.Eq.Euro Hdg Fd.

€ 243.22

-

-3.22 0.00

Jubilee Absolute Return Fund

$ 157.82

-

-0.85 0.00

Gb.Eq.Fund Euro

€ 250.35

-

-3.27 0.00

Gb.Eq. Fd Euro IRE T

€ 158.18

-

-2.07 0.00

Gb.Eq.Fd.Sterling UK T

£ 199.86

-

-2.78 0.00

Gb.Eq.Fd.US Dollar

$ 310.75

-

-4.23 0.00

Gb.Eq.Fund Sterling

£ 198.05

-

-2.77 0.00

Gb.Val.Ex-Jap.Fd.USD

$ 117.49

-

-1.57 0.00

Gb.Val.Ex-Japan Fd.Yen

¥ 13722.00

-

-206.00 0.00

(LUX)

Regulated Absolute Return A1

€ 18.12

-

-0.09 0.00

Asia ex-Japan A1

$ 24.55

-

-0.21 0.00

Platinum All Star Fund - A

Offshore Fund Class A US $ Shares

101 New Cavendish Street,London W1W 6XH Regulated

Oasis Crescent Management Company Ltd -

6.93

Morant Wright Management Ltd

-

(CYM)

Regulated MW Japan Fd Ltd A

$ 22.27

-

0.13 0.00

MW Japan Fd Ltd B

$ 22.57

-

0.13 0.00

Pictet Funds (Europe) SA

Other International Funds Oasis Crescent Equity Fund

R

9.50

-

-0.07 0.00

Oasis Global Mgmt Co (Ireland) Ltd

(IRL)

Regulated Oasis Global Investment (Ireland) Plc

Biotechnology I USD

$ 16.09 16.09 -0.22 0.00

-0.39 0.00

European Income Acc EUR

€ 10.17 10.17 -0.01

Oasis Crescent Global Equity Fund $ 27.86

-

-0.28 0.00

Pictet-Biotech-I USD F

$ 775.04

-

-17.56 0.00

Financial Opps I USD

$ 12.30

-

-0.08 1.95

OasisCresGl Income Class A

$ 11.10

-

0.00 2.58

Pictet-Brazil Index I USD

$ 59.15

-

-1.17 0.00

GEM Growth I USD

$

9.85

-

0.01 0.00

OasisCresGl LowBal D ($) Dist

-

0.01 0.00

-0.15 0.00

European Concentrated A1

€ 15.66

-

-0.15 0.00

European Core Eq A1

€ 26.80

-

-0.25 0.00

European Res.A1

€ 28.23

-

-0.31 0.00

European Smaller Companies A1 € 41.94

-

-0.40 0.00

Pictet-Em Lcl Ccy Dbt-I USD F

$ 179.11

European Value A1

€ 31.28

-

-0.20 0.00

Pictet-Emerging Markets-I USD F $ 538.69

Global Bond A1

$ 10.81

-

0.02 0.00

Pictet-Emerging Markets Index-I USD F $ 244.22

Global Conc.A1

$ 35.99

-

-0.43 0.00

Global Energy Fund A1

$ 13.84

-

-0.37 0.00

Global Equity A1

$ 45.48

-

-0.52 0.00

Global Equity A1

€ 23.21

-

-0.39 0.00

-0.07 0.00

Morant Wright Sakura Fund Euro Acc Hedged € 11.95

-

-0.08 0.00

Morant Wright Sakura Fund Yen Acc Unhedged ¥ 1214.98

-

-7.71 0.00

Morant Wright Sakura Fund Dollar Acc Hedged $ 11.94

-

-0.08 0.00

Morant Wright Sakura Fund Swiss Franc Acc HedgedSFr 11.93

-

-0.08 0.00

$ 25.82

-

-0.37 0.00

US Advantage A F

$ 52.69

-

0.00 0.00

Global Total Return A1

€ 15.96

-

-0.16 0.00

Asian Equity A F

$ 43.35

-

-0.36 0.00

High Yield A1

$ 24.86

-

-0.11 0.00

Asian Property A F

$ 18.93

-

0.00 0.00

High Yield Fund A1

€ 14.54

-

-0.14 0.00

Asian Property AX F

£ 11.19

-

0.00 1.06

Inflation-Adjusted Bond A1

$ 14.22

-

0.02 0.00

Diversified Alpha Plus A F

€ 33.88

-

0.13 0.00

Japan Equity A1

$

9.37

-

-0.13 0.00

Emerg Europ, Mid-East & Africa Eq A F € 61.03

-

-0.82 0.00

Latin American Equity Fd A1

$ 16.25

-

-0.40 0.00

Emerging Markets Debt A F

-

-0.56

$ 76.04

-

Limited Maturity A1

$ 14.04

-

0.00 0.00

Emerging Markets Domestic Debt AX F £ 12.44

-

-0.09 4.98

Prudent Wealth Fd A1

$ 13.99

-

0.01 0.00

Emerging Markets Equity A F

$ 36.40

-

-0.48 0.00

Research Bond A1

$ 16.59

-

0.02 0.00

Euro Bond A F

€ 15.61

-

0.01 0.00

UK Equity A1

£

7.80

-

-0.10 0.00

Euro Corporate Bond AX F

£ 23.99

-

-0.04 2.09

US Conc.Growth A1

$ 15.25

-

-0.23 0.00

Euro Strategic Bond A F

€ 43.28

-

0.00 0.00

US Government Bond A1

$ 17.02

-

0.03 0.00

European Currencies High Yield Bd A F € 21.23

-

0.06 0.00

Value A1

$ 21.83

-

-0.34 0.00

European Equity Alpha A F

€ 40.62

-

-0.15 0.00

European Property A F

€ 29.67

-

-0.14 0.00

Eurozone Equity Alpha A F

€ 10.48

-

0.00 0.00

Global Bond A F

$ 40.20

-

-0.06 0.00

Global Brands A F

$ 93.74

-

-0.27 0.00

Global Convertible Bond A F

$ 42.02

-

-0.12 0.00

Manulife Global Fund

(LUX)

31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg www.manulife.com.hk FCA Recognised American Growth Fund Class A F $ 28.6191

-

-0.0124 0.00

American Growth Fund Class AA F $ 1.6280

-

-0.0007 0.00

American Growth Fund Class AA (HKD) FHK$ 10.2115

-

-0.0043

-

Asian Equity Fund Class A F

$ 3.0760

-

-0.0291 0.40

Asian Equity Fund Class AA F

$ 27.41

-

-0.25 0.17

Global Property A F

$ 28.07

-

-0.05 0.00

Indian Equity A F

$ 34.30

-

-0.59 0.00

Latin American Equity A F

$ 50.66

-

-1.32 0.00

Short Maturity Euro Bond A F

€ 20.40

-

-0.01 0.00

US Dollar Liquidity A F

$ 13.03

-

0.00 0.00

US Growth A F

$ 62.30

-

-0.04 0.00

US Growth AH F

€ 43.06

-

-0.03 0.00

US Growth AX F

£ 39.74

-

0.55 0.00

US Property A F

$ 68.65

-

0.06 0.00

Morgens Waterfall Vintiadis.co Inc Other International Funds Phaeton Intl (BVI) Ltd (Est)

$ 457.88

-

10.23 0.00

$ 12.04

-

-0.06 0.00

Pictet-CHF Bonds I CHF

SFr 496.01

-

0.25 0.00

GEM Income I USD

$ 11.23

-

-0.08 0.12

Pictet-China Index I USD

$ 111.05

-

0.58 0.00

Global Alpha I USD

$ 12.75 12.75 -0.12 0.00

Oasis Crescent Gbl Property Eqty $

-

0.01 1.74

Pictet-Clean Energy-I USD F

$ 86.81

-

-1.95 0.00

Global Convertible I USD

$ 11.27 11.27 -0.05 0.00 £

3.62

-

-0.03 0.00

$ 21.74

-

-0.38 0.00

9.70

Odey Asset Management LLP

(CYM)

Regulated

-

-0.36 0.00

Pictet-EUR Short Mid-Term Bonds-I F € 136.32

-

-0.04 0.00

Odey European Inc USD

$ 401.74

-

0.00 0.00

Pictet-EUR Short Term HY I EUR

€ 116.73

-

-0.19 0.00

Giano Capital EUR Inc

€ 4877.72

-

138.33 0.00

-

0.62 0.00

Odey Allegra European USD O

$ 237.76

-

0.60 0.00

Odey Allegra European EUR I

€ 237.67

-

0.73 0.00

Odey Allegra European EUR A I

€ 152.37

-

0.47 0.00

Odey Allegra European GBP D

£ 170.14

-

0.38 0.00

Odey Allegra International Euro Class € 158.68

-

-1.73 0.00

Odey Allegra International GBP Class £ 196.17

-

-2.30 0.00

$ 155.01

-

-1.77 0.00

Odey Allegra International USD

Odey Allegra International Euro I Class € 145.26

-

-1.57 0.00

Odey Allegra International GBP D inc £ 177.72

-

-2.09 0.00

Odey Allegra International GBP A D £ 131.13

-

-1.54 0.00

Odey Allegra Developed Markets Fund USD I $ 126.45

-

-1.07 0.00

Odey Allegra Developed Markets Fund GBP I £ 125.07

-

-1.09 0.00

Odey Atlas Fund GBP I

£ 104.96

-

-0.27

Odey Atlas Fund GBP I S

£

1.26

-

0.00 0.00

Odey Atlas Fund GBP R S

£

-

1.08

-

0.00 0.00

Odey Giano European Fund EUR R € 123.76

-

0.56 0.00

Odey Giano European Fund GBP R £ 124.17

-

0.56 0.00

-

-0.41 0.00

China Value Fund Class A F

$ 8.3042

-

-0.0729 0.72

Odey Odyssey USD I

$ 150.16

-

-1.82 0.00

China Value Fund Class AA F

$ 2.6044

-

-0.0229 0.49

Odey Odyssey Fund GBP I

£ 149.67

-

-1.82 0.00

Dragon Growth Fund Class A F

$ 1.9358

-

-0.0152 0.62

Odey Odyssey Fund GBP R

£ 147.53

-

-1.79 0.00

Dragon Growth Fund Class AA HKDHK$ 9.3785

-

-0.0737 0.59

Odey Odyssey EUR I

€ 134.35

-

-1.64 0.00

Emerging Eastern Europe Fund Class AA F $ 1.4455

-

-0.0348 0.42

Odey Odyssey Fund EUR R

€ 111.88

-

-1.36 0.00

Emerging Eastern Europe Fund Class A F $ 3.3626

-

-0.0809 0.76

$ 117.02

-

-1.42 0.00

European Growth Fund Class A F $ 10.5074

-

-0.0339 1.21

Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000 FCA Recognised

Odey Odyssey Fund USD R Odey Orion Fund Euro I Class

€ 121.70

-

0.01 0.00

European Growth Fund Class AA F $ 0.7611

-

-0.0025 0.59

Harris Global Equity R/A (USD)

$ 270.07 270.07 -4.00 0.00

Odey Orion Fund USD I Class

$ 121.78

-

0.01 0.00

Global Contrarian Fund Class AA F $ 0.9330

-

-0.0035 0.00

Harris Concentrated US Equity H-N/A (GBP) £ 148.06 148.06 -2.33 0.00

Odey Swan Fund Euro I Class

€ 105.69

-

0.57 0.00

Global Property Fund Class AA F $ 0.9987

-

-0.0035 0.75

Harris Concentrated US Equity R/D (GBP) £ 137.06 137.06 -2.21 3.52

Odey Swan Fund Euro R Class

€ 104.80

-

0.57 0.00

Global Resources Fund Class AA F $ 0.7961

-

-0.0179 0.00

Loomis Sayles Strategic Alpha Bond Fund H-N/D(GBP) £ 99.23 99.23 -0.14 1.74

Odey Swan Fund GBP I Class

£ 105.78

-

0.58 0.00

Greater China Opportunities Class AA $ 0.9868

-

-0.0066

Odey Swan Fund GBP R Class

£ 109.99

-

0.60 0.00

Healthcare Fund Class AA F

$ 1.8779

-

0.0001 0.00

Odey Swan Fund USD I Class

$ 105.48

-

0.57 0.00

India Equity Fund Class AA F

Odey Swan Fund USD IR Class

$ 105.06

-

0.58 0.00

Odey Swan Fund USD R Class

$ 104.67

-

0.57 0.00

Odey European Absolute Return Fund EUR I € 97.31

-

0.99

-

Odey European Absolute Return Fund GBP I £ 96.64

-

0.98

-

Odey European Absolute Return Fund USD I $ 97.72

-

0.99

-

Japanese Growth Fund Class AA F $ 0.7852

-

-0.0087 0.00

Loomis Sayles High Income R/D (USD) $ 10.53 10.53 -0.04 4.63 Loomis Sayles Multisector Income R/D (GBP) £ 13.79 13.79 -0.04 3.70

Asia Value Dividend Equity Fund Class AA F $ 1.6265

-

-0.0141 0.00

Asia Value Dividend Equity Fund Class AA Inc $ 0.9913

-

-0.0099

Strategic Income Fund Class AA F $ 1.0713

-

-0.0027 4.45

-

Marlborough International Management Limited (GSY) Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 FCA Recognised Marlborough North American Fund Ltd £ 30.27 32.26 0.24 0.00 Marlborough Tiger Fund Ltd F

£ 26.13 26.39 -0.22 0.00

Marwyn Asset Management Limited

(CYM)

Regulated Marwyn Value Investors

£ 508.53

-

-17.94 0.00

Meridian Fund Managers Ltd Other International Funds $ 235.74

-

-25.71

-

Global Energy & Resources Fund $ 63.53

Global Gold & Resources Fund

-

-9.60

-

Metage Capital Other International Funds MGS -Master Series

$ 199.54

-

-1.09

MEMO - Master Series

$ 495.51

-

-19.16 0.00

MEMO - MEMV Series (Est)

$ 122.03

-

-

-5.85 0.00

Mirabaud Asset Management

(LUX)

www.mirabaud.com, [email protected] Regulated Mirabaud Fund Mir. Ac. All. Bal A EUR

€ 110.86

-

-1.53 0.00

Mir. Ac. All. Cons A EUR

€ 109.56

-

-0.85 0.00

Mir. Conv. Bds Eur A EUR

€ 127.78

-

-0.21 0.00

Mir. Conv. Bds Glb A USD

$ 111.73

-

-0.26 0.00

Mir. - Dynam.Alloc. A EUR

€ 104.22

-

0.20 0.00

Mir. - Eq Asia ex Jap A

$ 179.28

-

-2.19 0.00

Mir. - Eq Glb Emrg Mkt A USD

$ 100.53

-

-1.53

Mir. - Eq Global A USD

$ 126.14

-

-1.55 0.00

€ 25.48

-

-0.10 0.00

SFr 291.22

-

-1.45 0.00

Mir. -Eq Spain A Mir. - Eq Swiss Sm/Mid A

-

Mir. - Eq UK

£

2.02

-

0.01 0.00

Mir. - Eq US A USD

$ 168.35

-

-2.54 0.00

Mir. - Glb High Yield Bds A

$ 108.46

-

-0.51

-

-

-0.18 2.40

Asia Pac Eq GBP Ord Inc

£ 105.89

-

-0.18 2.78

Asia Pac Eq USD Ord Inc Asia Pac Eq USD Inst Acc Asia Pac Eq USD Inst Inc

$ 106.52 $ 109.08 $ 119.14

-

-

0.14 0.00

-

-0.19 0.00

Pictet-Global Emerging Debt-I USD F $ 350.39

-

-1.12 0.00

Pictet-Global Megatrend Selection-I USD F $ 222.88

-

-3.06 0.00

$ 443.09

-

-2.24 0.00

Prusik Investment Management LLP Enquiries - 0207 493 1331 Regulated

-

-0.19 0.51

£ 160.35

-

-0.21 0.93

Dyn Europ Eq USD Ord Inc

$ 150.52

-

-0.20 0.63

Pictet-High Dividend Sel I EUR F € 143.36

-

-1.35 0.00

Pictet-India Index I USD

$ 105.99

-

-0.09 0.00

Pictet-Indian Equities-I USD F

$ 447.88

-

-5.30 0.00

Pictet-Japan Index-I JPY F

¥ 14790.61

-

-113.73 0.00

Pictet-Japanese Equities Opp-I JPY F ¥ 8719.17

-

-48.95 0.00

Pictet-Japanese Equity Selection-I JPY F ¥ 13249.40

-

-74.45 0.00

Pictet-LATAM Index I USD

$ 68.33

-

-1.69 0.00

Pictet-LATAM Lc Ccy Dbt-I USD F $ 136.95

-

-1.43 0.00

PCG B

162.83

-

Pictet-Pacific Ex Japan Index-I USD F $ 357.68

-

-3.04 0.00

PCG C

160.86

-

€ 146.39

-

-0.90 0.00

36.99 0.00

Optima Fund Management Other International Funds

€ 145.94

-

2.02 0.00

JENOP Global Healthcare Fund Ltd $ 14.36

-

0.18 0.00

China Equity GBP Ord Acc

£ 149.50

-

2.06 0.00

Optima Fd NAV (Est)

$ 91.27

-

0.10 0.00

China Equity USD Ord Acc

$ 147.99

-

2.04 0.00

Optima Discretionary Macro Fund Limited $ 85.98

-

0.00 0.00

China Equity USD Inst Acc

$ 150.85

-

2.08 0.00

The Dorset Energy Fd Ltd NAV (Est) $ 41.31

-

-2.47 0.00

Swiss Select Equity Inst Acc

SFr 108.39

-

-0.21

-

Platinum Fd Ltd (Est)

$ 89.79

-

0.00 0.00

Swiss Select Equity Ord Acc

SFr 107.87

-

-0.21

-

Platinum Fd Ltd EUR (Est)

€ 17.58

-

0.00 0.00

Value Partners Classic Equity USD Hedged $ 13.23

0.0035 3.79

UK Equity Fund

£ 1.8556

-

-0.0243 2.87

Stenham Asset Management Inc

Value Partners Hong Kong Limited

Veritas Asset Management LLP

(IRL) HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland Veritas Funds Plc www.veritas-asset.com +353 1 635 6799 FCA Recognised Veritas Asian Fund A USD H

$ 300.57

-

-1.98 0.67

Veritas Asian Fund A GBP H

£ 355.11

-

-2.86 0.50

Veritas Asian Fund A EUR H

€ 279.42

-

-3.81 0.47

Veritas China Fund A USD

$ 133.19

-

-0.54 0.00

Veritas China Fund A GBP

£ 135.08

-

-0.55 0.00

$ 113.35

-

1.90

-

Veritas Global Focus Fund D GBP £ 27.04

-

-0.34 2.48

-

2.06

-

Veritas Global Focus Fund A GBP £ 26.10

-

-0.34 2.25

Stenham Quadrant USD A

$ 386.99

-

7.40

-

Veritas Global Focus Fund A EUR € 11.77

-

-0.24 2.28

Stenham Trading Inc USD

$ 112.33

-

2.15

-

Veritas Global Focus Fund A USD $ 24.11

-

-0.33 2.34

Stenham Universal USD

$ 439.55

-

7.34

-

Veritas Global Focus Fund C GBP £ 28.15

-

-0.37 0.00

Stenham Universal II USD

$ 163.65

-

2.66 0.00

Veritas Global Focus Fund C EUR € 21.12

-

-0.44 0.00

Veritas Global Focus Fund C USD $ 26.08

-

-0.35 0.00

(GSY)

Veritas Global Equity Income Fund A GBP £ 152.79

-

-1.46 4.48

Veritas Global Equity Income Fund A EUR € 194.53

-

-3.38 4.22

Veritas Global Equity Income Fund A USD $ 123.91

-

-1.26 4.48

Veritas Global Equity Income Fund C GBP £ 175.63

-

-1.68

-

Veritas Global Equity Income Fund C EUR € 223.39

-

-3.87

-

Veritas Global Equity Income Fund C USD $ 141.50

-

-1.44

-

Veritas Global Real Return Fund A USD $ 19.70

-

-0.16 2.09

Veritas Global Real Return Fund A GBP £ 10.94

-

-0.09 2.08

Veritas Global Real Return Fund A EUR € 11.57

-

-0.09 0.17

-1.34 5.19

(GSY)

Pictet Total Ret-Corto Europe I EUR € 124.62

-

Pictet Total Ret-Divers Alpha I EUR € 100.83 € 108.75

-

Stratton Street Capital (CI) Limited

-

-

Regulated Japanese Synthetic Warrant

¥ 1080.94

-

84.18 0.00

-

0.00

-

0.69 0.00

0.04 0.00

European Opportunities Fund B

€ 104.90

-

-0.02 0.00

Japan Synthetic Warrant US Dollar Hedged Participating Shares $ 125.29

-

0.00

-

0.16

Renaissance Eastern European Allocation Fund € 411.10

-

-0.02 0.00

Renminbi Bond Fund AUD Cls A A$ 117.85

-

-0.58 3.66

-

0.06 0.00

Renaissance Eastern European Fund A € 374.74

-

-10.75 0.00

Renminbi Bond Fund AUD Cls B A$ 119.52

-

-0.59 3.43

Pictet Total Ret-Mandarin I USD $ 116.20

-

-0.28 0.00

Renaissance Eastern European Fund B € 80.46

-

-2.31 0.00

Renminbi Bond Fund CHF Cls A SFr 118.05

-

-0.60 3.28

Pictet-US Equity Selection-I USD $ 187.18

-

-3.51 0.00

Renaissance Ottoman Fund

€ 118.21

-

-2.04 0.00

Renminbi Bond Fund CHF Cls B SFr 117.76

-

-0.60 3.05

Pictet-US High Yield-I USD F

$ 146.18

-

-0.50 0.00

Renminbi Bond Fund CNH Cls A CNH 120.04

-

-0.79 3.38

Pictet-USA Index-I USD F

$ 176.96

-

-2.93 0.00

Renminbi Bond Fund CNH Cls B CNH 119.72

-

-0.79 3.15

Pictet-USD Government Bonds-I F $ 628.57

-

2.26 0.00

Renminbi Bond Fund Euro Cls B

€ 118.49

-

-0.60 3.04

Pictet-USD Short Mid-Term Bonds-I F $ 128.73

-

0.08 0.00

Renminbi Bond Fund GBP Cls B

£ 119.59

-

-0.60 2.95

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

$ 102.48

-

0.00 0.00

Renminbi Bond Fund SGD Cls B S$ 118.51

-

-0.58 3.28

Pictet-Water-I EUR F

€ 243.59

-

-2.45 0.00

Renminbi Bond Fund USD Cls B

$ 118.96

-

-0.61 3.23

Renminbi Bond Fund YEN Cls B

¥ 12724.70

-

-62.53 0.00

Renminbi Bond Fund USD Class

$ 164.12

-

-0.84 3.46

Renminbi Bond Fund GBP Class

Regulated

(IRL)

Robeco Asset Management

(LUX)

Coolsingel 120, 3011 AG Rotterdam, The Netherlands. www.robeco.com/contact FCA Recognised

-

-

£ 159.50

-

-0.79 3.18

Renminbi Bond Fund SGD Class S$ 157.07

-

-0.77 3.51

Renminbi Bond Fund YEN Class

¥ 18829.00

-

-94.00 0.00

Renminbi Bond Fund EUR Class

€ 109.04

-

-0.55 3.28

Poland Geared Growth

£

-

-0.03 0.00

0.53

Retail Veritas Asian Fund B USD

$ 211.44

-

-1.37 0.48

Veritas Asian Fund B GBP

£ 261.87

-

-2.12 0.04

Veritas Asian Fund B EUR

€ 205.89

-

-2.81 0.00

Veritas China Fund B GBP

£ 130.92

-

-0.53 0.00

Veritas China Fund B EUR

€ 137.73

-

-0.59 0.00

Veritas Global Focus Fund B USD $ 17.44

-

-0.23

Veritas Global Focus Fund B GBP £ 19.97

-

-0.26 1.78

Veritas Global Focus Fund B EUR € 14.03

-

-0.29 1.82

Veritas Global Equity Income Fund B GBP £ 141.26

-

-1.35 4.52

Veritas Global Equity Income Fund B EUR € 179.40

-

-3.11 4.26

Veritas Global Equity Income Fund B USD $ 123.45

-

-1.25 4.52

Veritas Global Real Return Fund B USD $ 19.13

-

-0.16 1.64

Veritas Global Real Return Fund B GBP £ 10.76

-

-0.09 1.65

Veritas Global Real Return Fund B EUR € 12.45

-

-0.10 1.46

Real Return Asian Fund USD (Est) € 277.97

-

-1.26 0.00

Real Return Asian Fund GBP (Est) £ 295.97

-

-1.33 0.00

Real Return Asian Fund EUR (Est) $ 290.68

-

-1.14 0.00

$ 19.19

-

-0.08 0.00

Flex-o-Rente (EUR)

€ 107.57

-

0.14 0.00

Veritas Asset Management LLP

Diversified Income Durat Hdg Fund Inst Acc $ 11.39

-

-0.08 0.00

Glob.Consumer Trends Equities (EUR) € 130.12

-

-1.20 0.00

www.veritas-asset.com

EM Fundam.Ind StocksPLUS Fund Inst Acc $ 10.68

-

-0.09 0.00

High Yield Bonds (EUR)

€ 122.31

-

-1.41 0.00

€ 135.70

-

0.38 0.00

Emerging Asia Bond Fund Inst Acc $ 10.19

-

-0.02 0.00

Emerging Multi-Asset Fund Inst Acc $

-

-0.10 0.00

New World Financials (EUR)

€ 48.91

-

-0.44 0.00

€ 178.27

-

-3.41 0.00

Nippon Growth Fund Limited

$ 199.49

-

-3.78 0.00

$ 12.83

-

-0.10 0.00

US Premium Equities (EUR)

Emerging Markets Bond - Inst Acc $ 38.14

-

-0.39 0.00

US Premium Equities (USD)

Emerging Markets Corp.Bd Fund Inst Acc F $ 13.22

-

-0.06 0.00

Emerging Markets Curr.Fd- Inst Acc $ 12.77

-

-0.04 0.00

Euro Bond - Inst Acc

€ 22.32

-

-0.03 0.00

Euro Credit - Inst Acc

€ 14.55

-

-0.01 0.00

Euro Income Bond - Inst Acc F

€ 12.87

-

-0.05 0.00

Euro Long Average Duration - Inst Acc € 21.17

-

0.04 0.00

Euro Low Duration Fund Inst Acc € 11.28

-

0.00 0.00

Euro Real Return - Inst Acc

€ 13.13

-

-0.05 0.00

Euro Short-Term Inst Acc

€ 12.19

-

-0.01 0.00

S W Mitchell Capital LLP

Euro Short-Term Inv Acc

€ 11.83

-

-0.01 0.00

Regulated

Euro Ultra Long Duration - Inst Acc € 28.29

-

0.14 0.00

S W Mitchell European Fund Class A EUR € 301.56

-

17.28

Global Advantage - Inst Acc

-

-0.03 0.00

S W Mitchell Small Cap European Fund Class A EUR € 218.85

-

3.57

9.66

-

-0.07 0.00

The Charlemagne Fund EUR

Global Bond - Inst Acc

$ 27.37

-

0.00 0.00

Global Bond Ex-US - Inst Acc

$ 19.13

-

-0.02 0.00

Global Fundam.Index StocksPLUSInst Acc $ 11.63

-

-0.20 0.00

Global High Yield Bond - Inst Acc $ 19.60

-

-0.07 0.00

Global Investment Grade Credit - Inst Income $ 12.42

-

-0.02 3.17

Global Investment Grade Credit Fund Inst Acc € € 10.59

-

-0.02 0.00

Global Investment Grade Credit Fund Inst Acc $ $ 16.38

-

-0.03 0.00 -0.14 0.00 -0.06 0.00

$ 27.15

-

-0.11 0.00

US Growth GBP Ord Acc

£ 195.69

-

-3.23 0.00

Orbis Optimal (US$)

$ 75.24

-

-0.73 0.00

High Yield Bond - Inst Acc

US Growth USD Inst Acc

$ 179.22

-

-2.97 0.00

Orbis Optimal (Euro)

€ 25.52

-

-0.22 0.00

Income Fund Inst Acc

$ 11.92

-

-0.03 0.00

Wealthy Nat Bd EUR Inst Inc

€ 110.49

-

-0.18 3.95

Orbis Optimal (Yen)

¥ 1080.00

-

-8.00 0.00

Inflation Strategy Fund Inst Acc

$

-

-0.06 0.00

Wealthy Nat Bd GBP Inst Inc

£ 113.99

-

-0.19 3.79

Orbis Japan Equity (US$)

$ 40.84

-

0.77 0.00

Wealthy Nat Bd EUR Ord Inc

€ 109.81

-

-0.18 3.66

Wealthy Nat Bd GBP Ord Inc

£ 114.53

-

-0.18 3.55

Wealthy Nat Bd USD Ord Inc

$ 111.65

-

-0.19 3.76

9.64

Regulated ¥ 100234.00

-

2421.00 0.00

Strat Evarich Japan Fd Ltd JPY

¥ 93470.00

-

-1047.00 0.00

Strat Evarich Japan Fd Ltd USD

$ 933.40

-

-10.34 0.00

(IRL)

Regulated

-12.15

S W Mitchell Capital LLP

Waverton Investment Funds Plc (1600)F

(IRL)

[email protected] FCA Recognised Asia Pacific A USD

$ 19.11

-

-0.16 1.06

European Fund A Eur

€ 16.29

-

-0.17 0.35 -0.05 5.00

-

-20.52 0.00

Global Bond Fund Cls A

$

9.16

-

Nippon Growth (UCITS Fund Euro Hedged Institutional Class EUR) € 1249.12

-

-24.06 0.00

Global Equity Fund A GBP

£ 14.31

-

-0.18 0.25

Nippon Growth (UCITS) Fund JPY Class A shares ¥ 97617.00

-

-1873.00 0.00

UK Fund A GBP

£ 12.50

-

-0.18 1.92

Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 81882.00

-

-1571.00 0.00

Waverton Equity Fund A GBP

£ 14.44

Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 79539.00

-

-1526.00 0.00

Waverton Sterling Bond Fund A GBP £

Nippon Growth (UCITS Fund Class D Institutional JPY) ¥ 52756.00

-

-1011.00 0.00

-

Strategic China Panda Fund USD $ 2256.71

-

51.25 0.00

-

Strategic China Panda Fund Hedged EURO € 2194.91

-

49.77 0.00

-

(IRL)

-

-0.14 0.00

9.87

-

-0.03 5.15

€ 119.50

-

-0.25 0.00

WA Fixed Income Fund Plc European Multi-Sector

Strategic China Panda Fund Hedged Sterling £ 2223.81

-

50.54 0.00

Strategic Euro Bond Accumulating Class CHFSFr 1021.45

-

0.25 0.00

Strategic Euro Bond Institutional Class EUR € 1031.76

-

0.28 0.00

Winton Capital Management

Strategic Euro Bond Fund Accumulating Class Shares € 1160.32

-

0.30 0.00

Other International Funds

€ 14180.98

-

-24.00 0.00

Strategic Euro Bond Fund Distributing Class Shares € 1060.99

-

0.27 0.00

Winton Futures USD Cls B

$ 1011.39

-

55.98 0.00

SWMC UK Fund B

£ 9960.03

-

90.89

Strategic Global Bond RMB Acc CNY 1084.41

-

1.65 0.00

Winton Futures EUR Cls C

€ 283.52

-

15.81 0.00

SWMC Small Cap European Fund B EUR € 12458.84

-

23.83 0.00

Strategic Global Bond USD Acc

$ 1056.44

-

-0.72 0.00

Winton Futures GBP Cls D

£ 309.69

-

17.56 0.00

SWMC Emerging European Fund B EUR € 8471.25

-

-10.30 0.00

Strategic US Momentum and Value Fund $ 789.27

-

-14.10 0.00

Winton Futures GBP Cls F

£ 119.45

-

6.77 0.00

Strategic US Momentum and Value EUR Hedged Class EUR € 551.05

-

-9.83

-

Winton Evolution USD Cls F

$ 1609.84

-

87.71 0.00

Strategic US Momentum and Value CHF Hedged Class CHFSFr 549.24

-

-9.78

-

Winton Evolution EUR Cls H

€ 1263.26

-

69.05 0.00

Winton Evolution GBP Cls G

£ 1281.79

-

71.02 0.00

Winton Futures JPY Cls E

¥ 19902.39

-

1173.41 0.00

The Hartford International Funds

(IRL)

Regulated

Low Average Duration - Inst Acc $ 14.71

-

0.00 0.00

RobecoSAM

8.30

-

-0.12 0.00

PIMCO EqS Pathfinder.Eur.Fd Inst Acc F € 14.00

-

-0.08 0.00

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

PIMCO EqS Pathfinder.Fd Inst Acc F $ 13.68

-

-0.12 0.00

Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.82

-

-0.10 0.00

StocksPLUS{TM} - Inst Acc

-

-0.34 0.00

(LUX)

RobecoSAM Sm.Energy/A

£ 11.37

-

-0.19 1.25

RobecoSAM Sm.Materials/A

£ 120.28

-

-2.39 2.00

RobecoSAM S.Climate/A

£ 78.60

-

-0.52 1.69

RobecoSAM S.Global Eq/B

€ 164.01

-

-2.44 0.00

RobecoSAM S.HealthyLiv/B

€ 160.41

-

-1.52 0.00

RobecoSAM S.Water/A

£ 159.02

-

-1.31 2.31

Gbl Govt Bond (Ex Japan) Index (GBP) £ 1618.83

-

-0.35 0.00

UK Corporate Bond

£ 1555.69

-

5.12 0.00

Gilt

£ 1555.54

-

10.41 0.00

Global Eq (Ex Japan) Index Fund

¥

1.34

-

-0.01 0.00

Global Eq (ex Japan) Class HJ4

¥

1.39

-

-0.02 0.00

Global Eq (ex Japan) Class JP5

¥

1.52

-

-0.03 0.00

Global Eq Ex Japan Index Fund (Hedge) ¥

1.40

-

-0.02 0.00

Total Return Bond - Inst Acc

$ 26.92

-

0.01 0.00

UK Corporate Bond - Inst Acc

£ 16.80

-

-0.03 0.00

UK Long Term Corp. Bnd Inst-Inst Acc £ 18.59

-

-0.05

UK Real Return - Inst Acc

£ 22.71

-

-0.08 0.00

UK Sterling Long Average Duration - Inst Acc £ 20.96

-

-0.06 0.00

Yuki Mizuho Japan Dynamic Growth ¥ 6679.00

-

-7.00 0.00

UK Sterling Low Average Duration - Inst Acc £ 13.98

-

-0.02 0.00

Yuki Mizuho Japan Large Cap

¥ 7033.00

-

-53.00 0.00

Yuki Japan Low Price

¥ 25081.00

-

-69.00 0.00

Unconstrained Bond - Inst Acc

-

$ 12.17

-

-0.04 0.00

US Fundam.Index StocksPLUS Inst Inc $ 12.43

-

-0.24 0.00

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.

¥

1.37

-

-0.01 0.00

Gbl Govt Bond (ex Japan) Class JP4 ¥

Gbl Govt Bond (Ex Japan) Index

1.35

-

0.00 0.00

Japan Equity Index Fund

¥

0.95

-

-0.01 0.00

Japan Equity Class JP3

¥

1.15

-

-0.01 0.00

Give your funds maximum exposure

(IRL)

Regulated

SWMC European Fund B EUR

-

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.

-

Nippon Growth (UCITS Fund Euro Hedged Class EUR) € 1066.99

Regulated

PIMCO EqS Emerging Markets Fund Inst Acc $

$ 22.62

E.I. Sturdza Strategic Management Limited (GSY)

E.I. Sturdza Funds PLC

(CYM)

Guide to Data

Other International Funds

Lux -O- Rente (EUR)

-

-0.08 0.00

$ 118.10

(IRL)

-

-

Stenham Multi Strategy USD

Renasset Select Funds Plc

€ 279.88

(IRL)

Stenham Managed Fund USD

(IRL) -

www.stenhamassetmanagement.com

Japan Synthetic Warrant Fund USD Class $ 11.64

-

-0.06 0.00

-0.0034 3.57

-

Japan Synthetic Warrant GBP Hedged Participating Shares £ 126.09

$ 18.18

-

-

£ 0.8707

-0.04 0.00

$ 14.39

5.14

£ 1.0421

Sterling Fixed Interest Fund

-

Global Real Return - Inst Acc

£

Global Fixed Interest Fund

€ 141.82

Global Multi-Asset - Inst Acc

NAV (Fully Diluted)

www.valuepartners.com.hk / [email protected] Regulated

European Opportunities Fund A

-3.11 0.00

Other International Funds

-0.0109 1.64

-0.42 2.88

0.18

-

-

-0.0095 1.65

-

-0.34 2.78

-2.16 0.00

€ 187.63

-0.01

-

Global Balanced Fund - Accumulations Units £ 1.5094

-

-

US Growth EUR Ord Acc

-

Global Balanced Fund - Income Units £ 1.3253

Veritas Global Focus Fund D EUR € 20.19

-

-2.82 0.00

£ 162.68

-0.0278 1.48

2.10 0.00

€ 101.89

-

Tactical Opps GBP Cls

-0.0057 3.08

-

$ 154.95

$ 178.36

Oryx International Growth Fund Ltd

Investments IV - Global Private Eq. € 429.57 451.05 0.00 0.00

$ 103.94

Pictet Total Ret-Agora I EUR

Global Advantage Real Return Fund Inst Acc $

-

Stenham Helix USD

Pictet-Timber-I USD F

$ 12.80

-51.77 0.00

-1.52 4.47

0.00 0.00

8.71

-

-

-

Orbis Investment Management Ltd

0.00 0.00

€ 24.78

Investments IV - European Private Eq. € 307.74 323.13 0.00

Veritas Global Focus Fund D USD $ 24.99

$ 134.78

Orbis Global Equity

-

Investments III

3.18 0.00

Pictet-ST.MoneyMkt-IUSD

Regulated

€ 144.78

(LUX)

Regulated

-

-0.07

-3.24 0.00

Tactical Opps EUR Cls

(JER)

$ 167.88

0.00 0.00

-

-0.03 0.00

-0.14 0.00

Stenham Healthcare USD

-

$ 195.49

-

-2.05 3.67

-2.22 0.00

SFr 125.23

US Growth USD Ord Acc

$ 172.01

-

-3.46 4.20

Pictet-ST.MoneyMkt-ICHF

-0.24 3.70

Tactical Opps USD Cls

£ 159.80

-

-0.12 0.00

-

-1.46 0.00

-1.82 0.00

Sequoia Equity C

-

-

£ 116.02

-

-

Veritas Global Equity Income Fund D GBP £ 159.02

-

Total Ret Bd GBP Ord Inc

Orbis Global Equity - Investor Shares € 142.29

$ 145.22

Veritas Global Equity Income Fund D EUR € 199.73

RECM Global Equity Fund Limited - Class A $

-0.25 0.00

-0.62 0.00

-1.69 0.00

Sequoia Equity B

3.78

RECM Global Fund Limited - Class A $ 17.30

-

-

-

-

0.00 0.00

$ 123.65

Orbis Asia ex-Japan - Investor Shares $ 22.61

€ 135.69

$ 213.94

-2.10 0.00

Total Ret Bd USD Inst Acc

-0.90 0.00

-2.40 0.00

Sequoia Equity A

Stenham Growth USD

-

0.11 0.00

-0.86 0.00

-

-2.25 0.00

-

-

-

£ 175.26

-1.30 4.47

¥ 101575.77

$ 16.72

-

-1.89 0.00

Global Opp.C

3.48 0.00

€ 140.54

Optima Partners Focus Fund A

£ 116.21

-1.81 0.00

-

-

Pictet-ST.MoneyMkt JPY I USD

-0.37 0.00

€ 108.17

-

$ 141.14

$ 158.16

Pictet-ST.MoneyMkt-I

-

All Weather Fd GBP Cls

€ 138.67

Global Opp.B

Stenham Gold USD

Regulated

1.55 0.00

£ 178.35

All Weather Fd EUR Cls

Global Opp.A

-0.54 0.00

-

Total Ret Bd GBP Ord Acc

0.51 0.00

-2.26 0.00

-

Pictet-Small Cap Europe-I EUR F € 892.65

0.13 0.00

-

-

-

www.recmglobal.com Enquiries: [email protected] Regulated

-

€ 26.44

$ 362.84

TreeTop Global Sicav

€ 131.39

RECM Global Management Limited

$ 14.52

Orbis Japan Equity (Euro)

Pacific B

Veritas Global Equity Income Fund D USD $ 128.44

0.20 0.00

Pimco Fds: Global Investors Series Plc

-1.84 0.00

Veritas China Fund A EUR

-

-

-

0.53 0.00

(JER)

€ 104.41

-

€ 287.90

-0.45 0.00

Purisima Investment Fds (CI) Ltd

8.82

-2.67 0.00

Pacific A

-

Pictet-Select-Callisto I EUR

Optima Partners Global Fd

78.00 0.00

-

-

-

-2.56 0.00

-0.33 0.00

-

8.90

€ 275.91

Stenham Emerging Markets USD B1 $ 110.30

-

-

¥ 3995.00

$

-1.26 0.00

International D

Stenham Credit Opportunities A Class USD $ 105.40

$ 185.94

€ 157.51

Orbis Japan Equity (Yen)

0.00 0.00

-

1.99

Pictet-Security-I USD F

Total Ret Bd EUR Ord Acc

-0.86 0.00

-

£ 129.50

-

0.15 0.00

0.00 0.00

-

7.89

-3.61 0.00

International C

$ 133.56

-

-

$ 119.79

$

-

-2.81 0.00

-

-

Stenham Asia USD

$ 42.35

$ 49.25

All Weather Fd USD Cls

NZ$

-

-

Other International Funds

Pictet-Russian Equities-I USD F

Platinum Japan Fd Ltd (Est)

Regulated

-

€ 290.25 $ 373.33

£ 1.1668

-0.77 0.00

Putnam New Flag Euro High Yield Plc - E € 1038.26

-0.35 0.00

(LUX)

-

0.00

International A International B

£ 1.7584

-1.32 0.00

Regulated

(LUX)

Regulated

Global Equity Fund

-

Putnam Investments (Ireland) Ltd

TreeTop Asset Management S.A.

Diversified Assets Fund

-

-1.38 0.00

Emerging Local Bond - Inst Acc

Data Provided by Morningstar

www.morningstar.co.uk

-0.0174 2.32

$ 158.59

-0.27 0.00

-

Orbis Sicav

20.23 0.00

-

$ 199.14

-

$ 167.96

*Orbis Prices as of December 4th

-

£ 1.5611

Prusik Asian Smaller Cos A

-

Total Ret Bd USD Ord Acc

(BMU)

0.00

-

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

Prusik Asia A

Pictet-Quality Global Equities I USD $ 133.79

Diversified Income - Inst Acc

-

$ 313.41

Unicapital Investments

-1.02 4.19

-1.09 0.00

$ 847.70

-

0.01

Standard Life Wealth

-

-

Omnia Fund Ltd

0.01

Daiwa Equity Fund Series

Prusik Asian Equity Income B Dist $ 156.60

Pictet-Russia Index I USD

Pictet Total Ret-Kosmos I EUR

Tosca Opportunity B USD

Institutional

Emerging Markets Equities (EUR) € 140.61

-1.28 0.00

$ C$

(IRL)

-0.05 0.00

-

-

£ 437.53 442.61 -4.13 0.97

-

China Equity EUR Ord Acc

New Capital Alternative Strategies

Monument Growth 09/12/2014

Credit Absolute Return Fund Inst Acc $ 11.36

€ 211.13

0.00

(GSY)

-1.17 0.00

(IRL)

-

Regulated

-

-0.21 3.02

€ 149.76

Private Fund Mgrs (Guernsey) Ltd

€ 168.35

-0.19 0.00

Dyn Europ Eq GBP Ord Inc

-

Em Stars Equities (EUR)

-0.19 2.43

Dyn Europ Eq EUR Ord Inc

7.80

$ 1392.81 1410.22 10.01 0.00

-0.10 0.00

0.03 1.93

-

-

-

-

0.03 2.60

€ 102.85

Polunin Discovery - Frontier Markets $ 1547.54

22.64 0.00

8.12

Other International Funds

Asia Pac Eq EUR Ord Inc

-

$ 846.75 853.95 -12.58

-0.30 0.00

Estimated NAV

$ 99.98

$ 945.55

Polunin Developing Countries

-

Odey Opportunity EUR I

Asia Pac Bd USD Ord Inc

Luxcellence Em Mkts Tech

-

€ 68.43

-0.0042 0.00

-0.0009 3.51

0.73

Chinese Equities (EUR)

www.odey.com/prices FCA Recognised

-

0.63 0.00

-

-0.05 0.00

-

Asia Total Return Fund Class AA Inc $ 0.9658

-

$ 41.46

-

-0.0064

-

$ 38.29

Emerging Markets Active

$ 14.43

-

$ 98.13

Developing Countries 'A'

€ 150.12

$ 50.22

New Zealand Dllr Pfolio

Bridge Fund

Other International Funds

Polunin Small Cap

0.01

Standard Life Offshore Strategy Fund Limited

Polunin Capital Partners Ltd

Capital Securities Inst Acc

U.S. Special Opportunities Fund Class AA Inc $ 0.9252

Asia Pac Bd USD Inst Inc

-0.03 0.00

-

Odey Wealth Management (CI) Ltd

-

-

0.99

-

New Capital UCITS Funds

€ 180.57

-

-0.0641

Leconfield House, Curzon Street, London, W1J 5JB FCA Recognised

European Forager A EUR

Odey European Absolute Return Fund USD S $ 97.77

-

(IRL)

-0.13 0.00

Pictet-Global Emerging Currencies-I USD F $ 101.56

CommoditiesPLUS111sp Strategy - Inst Acc $

New Capital Fund Management Ltd

-

-0.85 0.00

U.S. Special Opportunities Fund Class AA (HKD)HK$ 9.3484

-0.0010

-0.21 0.00

€ 162.39

-

-0.0062 6.94

-

-

European Conviction A EUR

€ 118.07

-

Asia Total Return Fund Class AA $ 0.9980

Pictet-Global Bds Fundamental I USD $ 126.65

-0.18 0.00

Asia-Pacific Equities (EUR)

U.S. Special Opportunities Fund Class AA F $ 0.9047

Other International Funds

-2.80 0.00

-

0.01 0.00

-

Manulife Global Fund

-0.47 0.00

-

$ 126.31

-

-0.0089

0.0009 0.06

-

$ 271.79

Canadian Dllr Pfolio

New Major Economies

ALVA Convertible A USD

9.97

-

-

€ 216.09

Pictet-Generics-I USD F

(CYM)

$

U.S. Bond Fund Class AA (HKD) IncHK$ 9.9232

US Treasury Inflation-Protected Securities Fund Class AA F $ 1.2954

Pictet-European Sust Eq-I EUR F

Polar Capital LLP Regulated

Asia Local Bond Fund - Inst Acc

-

-

-4.37 0.00

US$ Portfolio

Mthly Div US Preferred Secs

-

-0.0010

US Small Cap Equity Fund Class AA F $ 1.0981

-0.61 0.00

-

AU$ Portfolio

0.01 0.00

1.00

-

-16.71 0.00

-

A$

Daiwa Gaika MMF

-

-

$ 0.9997

-16.85 0.00

-

€ 155.38

Pictet-European Equity Selection-I EUR F € 549.00

-0.02 0.00

C$ 10.24

Odey European Absolute Return Fund GBP S £ 98.03

U.S. Bond Fund Class AA Inc F

-

$ 1322.90

Pictet-Europe Index-I EUR F

-

Monthly Dividend CAD Bd

-

-

-0.0011 3.93

£ 1313.82

-0.27 0.00

6.87

£ 10.64 10.64 0.09

0.99

-

Nevsky Fund Plc USD Acc

0.00 0.00

-

$

-0.01 0.00

-

$ 1.2030

Monthly Dividend High Yield

-

Odey European Absolute Return Fund EUR S € 97.47

US Bond Fund Class AA F

Regulated

€ 10.75

-

0.0003 0.00

Nevsky Fund Plc GBP Acc

-

€ 119.77

Pictet-Premium Brands-I EUR F

0.03 0.00

TreeTop Convertible Sicav

SMT Fund Services (Ireland) Limited

Monthly Dividend EUR Bd

0.98

-

-0.04 10.22

$ 16.93 16.93 -0.26 0.00

-

$ 0.9639

-

0.03 0.00

Odey European Absolute Return Fund USD R $ 97.41

Turkey Equity Fund Class AA F

-16.59 0.00

€ 14.54

-

PIMCO Europe Ltd,11 Baker Street,London W1U 3AH http://gisnav.pimco-funds.com/ Dealing: +44 20 3640 1000 PIMCO Funds: +44 (0)20 3640 1407 FCA Recognised

-0.0021 0.22

SKAGEN Tellus

A$ 10.44

-

-

-

Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 103.22

Pictet-Greater China-I USD F

1.13 0.00

-

-

Monthly Dividend AUD Bd

-

-

$ 1.5099

-1.09 0.00

0.00

0.98

Taiwan Equity Fund Class AA F

-0.18

-

-

0.93

-0.0112 0.00

-

€ 200.29

0.01

-

-

€ 1294.19

1.61 -0.01 0.00

-

-0.0214 1.24

$ 0.3938

Nevsky Fund Plc EUR Acc

-

Pictet-Euroland Index IS EUR

Pictet-Global Bonds-I EUR

-0.47 0.00

Odey European Absolute Return Fund GBP R £ 96.45

-

Russia Equity Fund Class AA F

Other International Funds

1.61

-

Odey European Absolute Return Fund EUR R € 92.64

Latin America Equity Fund Class AA F $ 0.9449

Nevsky Capital LLP

$ 36.08

-

-0.51 0.00

Pictet-EUR Inflation Linked Bonds I EUR € 124.32

£ 123.92

-0.0335 0.66

-

0.00 0.00

Odey Naver Fund GBP I Class

Loomis Sayles Global Opportunistic Bond R/D (GBP) £ 13.87 13.87 0.00 1.29

€ 542.56

0.00

£ 282.52

€ 15.43

SKAGEN Vekst

UK Absolute Equity I GBP

-

Odey Allegra European GBP O

SKAGEN m2

-1.65 0.00

-

0.46 0.00

-0.95 0.00 -1.05 0.00

-

£ 187.03

0.77 0.00

-

Pictet-Environmental Megatrend Sel I EUR € 139.72

£ 329.37

-

€ 136.81 € 73.66

North American I USD

Odey European Inc B GBP

-

-

Data as shown is for information purposes only. No offer is made by Morningstar or this publication.

SKAGEN Global

-0.62 0.00

Odey European Inc A GBP

€ 149.79

$ 268.58 £ 221.47

(NOR)

SKAGEN Kon-Tiki

-

-0.54 0.00

€ 249.04

Tosca Tosca Mid Cap GBP

PO Box 160, 4001 Stavanger, Norway Tel (47) 51 21 38 58 www.skagenfunds.com FCA Recognised

Pictet-Emerging Markets Sust Eq I USD $ 98.66

-

Odey Allegra European EUR A

-13.30 0.76

Daiwa Bond Series

€ 239.14

Odey Allegra European EUR O

-

-13.55 0.00

Pictet-EUR High Yield-I F

-0.19 0.00

SFr 188.80

¥ 1897.21

0.00 0.00

-0.02 0.00

LTIF Stability Inc Plus

¥ 193.81 193.81 -0.82 0.00

-

-

-5.10 0.73

Japan I JPY

€ 859.98

-

-

Japan Alpha I JPY

Odey European Inc EUR

€ 316.18

SFr 212.60

-1.03 0.00

-0.11

£ 200.85

(CYM)

Regulated

LTIF Stability Growth

-0.19 0.00

-

Odey Pan European EUR R

(CYM)

Regulated

-0.82 0.00

-

Pictet-EUR Government Bonds I EUR € 154.73

-0.0564

-

Zebedee Capital Partners LLP

(LUX)

-1.19 0.00

-

63.65 0.00

Odey Pan European GBP R

-0.44 0.00

-

Pictet-Emerging Markets High Dividend I USD $ 108.72

-

(IRL)

-

Zebedee Focus Fund Limited Class A USD $ 170.38

Pictet-Emerging Corporate Bonds I USD $ 104.59

$ 2117.09

FCA Recognised

£ 104.33

-1.85 0.00

-1.70 0.00

OEI MAC Inc USD

Odey Asset Management LLP

Memnon European Fund I GBP

-

-

0.01 0.00

-

Japanese Growth Fund Class A F $ 3.0488

-20.37 0.00

€ 81.47

Income Opportunities B2 I GBP Acc £

-0.03 0.00

Asian Small Cap Equity Fund Class AA (HKD)HK$ 8.7539

-0.0033 0.00

-

LTIF Natural Resources

Healthcare Opps I USD

-

0.57 0.00

-

$ 1361.06

-0.96 0.00

-5.97 0.00

-

-

(LUX)

FCA Recognised

-

-0.70 0.00

€ 199.46

-0.42 0.00

International Growth Fund Class AA F $ 1.0506

MENA UCITS Fund *

Zadig Gestion (Memnon Fund)

-

-

Pictet-EUR Corporate Bonds Ex Fin i EUR € 144.19

-

-0.0144 0.13

-21.20 0.00

Zebedee Focus Fund Limited Class B USD Shares $ 197.30

-

Pictet-EUR Corporate Bonds-I F

-

-0.0213 0.00

-

Zebedee Focus Fund Limited Class A EURO Shares € 169.78

Healthcare Blue Chip Fund I USD Acc $ 10.65 10.65 -0.14

0.00 0.00

€ 123.35

-

$ 1053.62

-4.08 0.00

Global Technology I USD

0.00 0.00

Odey Giano European Fund USD R $ 125.01

-

-62.00 0.00

-1.18 0.00

0.37 0.00

-

Odey Naver Fund Euro I Class

$ 1.3605

-

-

-2.99 0.00

-

-0.0140 0.00

(IRL) Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000 Regulated

Yuki Japan Rebounding Growth Fund ¥ 21565.00

-

-

£ 388.29

-0.0094 0.00

International Growth Fund Class A F $ 4.5701

0.08 0.00

€ 157.21

-

£ 217.61

-

Natixis International Funds (Dublin) I plc

-1.00 0.00

€ 315.76

€ 284.68

OEI MAC Inc A

-

-

-

LTIF Alpha

Pictet-Digital Communication-I USD F $ 235.87

OEI Mac Inc B

$ 0.9911

Natixis International Funds (Lux) I SICAV (LUX)

¥ 16050.00

LTIF Classic

Global Insurance I GBP

Pictet-EUR Bonds-I F

Asian Small Cap Equity Fund Class AA F $ 2.1637

-

-

OasisCresGl Med Eq Bal A ($) Dist $ 12.16

Morgan Stanley Investment Funds

Global Res.A1

3.55 0.00

Oasis Global Equity

Pictet-Eastern Europe-I EUR F

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

$ 297.30 297.30 -2.59 1.00

-2.04 0.00

-0.18 0.00

-

(IRL)

-

-

Morant Wright Sakura Fund Sterling Acc Hedged £ 11.97

Polar Capital Funds Plc

-

-

(IRL)

FCA Recognised

-

Pictet-Asian Local Currency Debt-I USD F $ 155.24

$ 11.69

-

-

Pictet-Asian Equities Ex Japan-I USD F $ 217.51

$ 32.91

Diversified Absolute Return Stlg Cell AF2 £ 1605.74

-

Oasis Crescent Global Investment Fund (Ireland) plc

Emerging Markets Eq.A1

3.25 0.00

-

£ 121.92 126.87 0.85 3.44

SKAGEN Funds

Asian Financials I USD

Emerging Markets Debt A1

-

7.05

Platinum Navigator Fund Ltd Class A $ 97.41

-1.64 0.00

-0.11 0.00

£ 2170.87 2192.23 85.54 0.00

-

-

-0.15 0.00

UK Equity Fd Cl A Series 01

-0.12

€ 174.68

-

Diversified Absolute Rtn Fd USD Cl AF2 $ 1590.01

-

Pictet-Agriculture-I EUR F

-

$ 2423.41 2443.08 -29.42 0.00

Platinum Essential Resources UCITs Fund $

Regulated

$ 13.11

Pacific Basin Fd Cl A Initial Ser

Regulated

-0.60 0.00

€ 15.51

MMIP - US EQUITY CLASS A 01 June 07 Series $ 1347.23 1351.29 11.16 0.00

-

-0.05

Emer Mkts Debt Lo Curr Fd A1

Japanese Equity Fd Cl A Initial Ser ¥ 316599.00 317659.00 15356.00 0.00

-

-

Continental European Eqty A1

Multi-Manager Investment Programmes PCC Limited

-

-

0.00 0.00

European Equity Fd Cl A Initial Ser € 2207.58 2216.44 105.25 0.00

SIA (SIA Funds AG)

Platinum Arbitrage Opportunities Fund Ltd Class A (Est) $ 93.87

€ 107.20

-0.06 0.00

Regulated

Indirect Real Estate SIRE

Platinum Global Dividend UCITS Fund $ 75.72 75.72 -0.41 6.26

€ 122.98

-

(GSY)

-

Pictet-Absl Rtn Fix Inc-HI EUR

-

MMIP Investment Management Limited

-

-

Pictet-Absl Rtn Glo Div-I EUR F

9.71

-0.09 0.00

-

-

15, Avenue J.F. Kennedy L-1855 Luxembourg Tel: 0041 58 323 3000 FCA Recognised

$

Morant Wright Funds (Ireland) PLC

-18.00 0.00

(LUX)

$ 10.35

-

-

(LUX)

China Equity Fd A1

$ 16.20

$ 112.60

Platinum Global Dividend Fund - A (Est) $ 64.48

MENA Hedge Fund

Other International Fds

Bond A1

Global Multi-Asset A1

-

TNI Funds Plc (Ireland)

SIA (SIA Funds AG) (CH)

Montello Real Estate Opportunity Fund II £ 1072.84

MFS Meridian Funds SICAV

AED 10.50

Toscafund

Montello Real Estate Opportunity Fund

-

YMR Umbrella Fund

TNI Funds Ltd (BMU)

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

-

¥ 12055.00

Yuki Japan Value Select

UAE Blue Chip Fund *

Offer D+/- Yield

Yuki International Limited

(IRL)

Tel +44-20-7269-0207 www.yukifunds.com Regulated Yuki Mizuho Umbrella Fund

Publish your funds in the Financial Times and stand out in an overcrowded market. It’s a powerful way to promote your brand, communicate with your clients and attract new investors. For more information please contact [email protected] or call +44 (0) 20 7873 3132

26

★

FINANCIAL TIMES

Friday 12 December 2014

MARKETS & INVESTING Capital markets

Early Argentina ‘holdouts’ deal in doubt

Beyondbrics

EM rout highlights China’s caution on currency reforms For those frustrated by slow progress towards freeing up China’s tightly controlled currency, recent days provide an illustration of why authorities are determined to proceed with caution. Emerging market currencies hit a 14-year low against the dollar this week, hit by concerns about rising debt and slowing exports in emerging markets. Yet amid the turmoil the renminbi has been a relative bastion of stability. Even as the currency hit its weakest level against the dollar in four months on Tuesday at Rmb6.21, it was only a modest 1.6 per cent weaker than the sevenmonth high touched on October 31. By contrast, the JPMorgan Emerging Markets Currency Index fell 5 per cent over the same period. “The jump in USD-RMB in the last two days is sharp by the currency’s own standards,” Wang Ju, forex strategist at HSBC, wrote on Tuesday. “However, given the movements in the rest of Asia, this partially represents a catch up with the likes of the Malaysian ringgit and the Korean won.” Top Communist party leaders pledged in a landmark blueprint for economic reform last November to give market forces a “decisive role” in resource allocation. The plan contained an explicit reference to the exchange rate. Yet despite such pledges, China’s management of its currency in recent days makes clear that authorities remain far from willing to deregulate fully the exchange rate or allow speculators free rein to send waves of capital sloshing in and out. The People’s Bank of China’s stabilising influence on the exchange rate is clear from the deployment of its daily fixing in recent days to restrain the renminbi’s decline. The central parity rate, which signals the central bank’s intention for the exchange rate, is a midpoint from which the spot rate is permitted to fluctuate by 2 per cent above or below. For most of the period

since China’s de-pegging of its currency in 2005, the renminbi’s spot rate consistently traded stronger than the midpoint, a sign that the fixing was acting as a check on market pressure, pushing the renminbi higher. But this pattern reversed late last month, after China cut benchmark interest rates in an attempt to boost its economy, which is on course for its slowest full-year growth since 1990. Even as the spot rate weakened, the central bank set a series of progressively stronger midpoints, widening the gap between spot and fixing. While some viewed this divergence as a tug of war between the central bank and the market, the PBoC’s move was an effort more to moderate the renminbi’s fall than to actively pull it stronger. Such action “indicates the central bank is sending a signal of stability to the market”, said Xie Yaxuan, economist at China Merchants Securities. The PBoC has probably also intervened in the market directly. Forex traders said they saw concerted renminbi buying by big state banks on Tuesday afternoon, following a big drop in the renminbi that morning. Such action typically signals the central bank’s presence in the market. While few expect rapid devaluation in the near term, many investors are starting to question the conventional wisdom that the Chinese currency is a one-way bet to appreciate. Entrenched appreciation expectations are easy to understand. Apart from 2009, following the PBoC’s temporary return to a dollar peg during the height of the financial crisis, the renminbi has risen against the US currency every year since 2005. Now, however, some investors believe a new era of renminbi depreciation may be at hand, especially with the prospect of rate rises by the Federal Reserve next year. The renminbi is now down 2.1 per cent year-to-date in 2014. Additional reporting by Ma Nan in Shanghai

Currencies Rmb per $ 6.00

Emerging markets (JPMorgan trade- weighted index) 90

6.05

88

6.10

86

6.15

84

6.20

82

6.25

80 Jan

2014

Sources: Thomson Reuters Datastream; Bloomberg

Dec

If bond issue and offer is agreed, rushed settlement could be avoided BENEDICT MANDER — BUENOS AIRES

Hopes for a resolution early next year of Argentina’s legal dispute with its “holdout” creditors have faded thanks to a $3bn bond issue and an offer to swap or cash in $6.7bn of debt maturing next year that closes today. If enough investors take up the government’s offer, this could bolster foreign exchange reserves and give Argentina the financial flexibility it needs to avoid being forced into a rushed settlement with a group of US hedge funds led by billionaire Paul Singer’s NML Capital. After negotiations collapsed in July triggering Argentina’s second default in

13 years, markets expect talks to resume in January when a key clause in bond contracts expires. A deal would enable Argentina to resume borrowing on the international capital markets, which it has been unable to do since its 2001 default. But analysts say Argentina may not be in such a rush to borrow abroad if it pulls off the $3bn issue of 2024 bonds under local law, which would sidestep a US court ruling in favour of the holdouts that prevented Argentina from paying its bondholders without paying them too, and so triggering the July default. Still, this financial freedom comes at a price: the 8.75 per cent interest rate on the new bonds is more than double what is paid by other countries in the region such as Brazil, Mexico and even Bolivia, explaining why Argentina has avoided issuing new debt in foreign

currency for more than seven years. The debt swap, which gives investors the opportunity to exchange 2015 bonds for ones that mature in 2024, would take further pressure off Argentina’s financial commitments next year, with the 2015 bonds representing about half of Argentina’s $13bn of debt payments due next year. Meanwhile, the government is billing its offer to investors to receive early payment of their 2015 bonds as another sign of its willingness to pay its debt, despite being prevented from servicing its foreign law bonds by a US court order until it reaches a deal with the holdouts. This will calm market speculation that the government was planning to default on the 2015 bonds next year or convert them into local currency. Nevertheless, there is consensus among analysts that the terms of the

$3bn Country’s bond issue with offer to swap or cash in $6.7bn of debt maturing next year

8.75

% Interest rate on new bonds which is more than double that paid by other countries in region

offer do not offer sufficient incentives to ensure widespread participation, especially among foreign investors who hold around 70 per cent of the bonds maturing in 2015. It remains to be seen whether the government will adjust the terms or extend the offer. Depending on the success of the offer in bolstering foreign exchange reserves, which have also been supported by such measures as a foreign currency swap with China, the government may also be able to postpone a devaluation, which analysts argue will eventually be inevitable. “The strategy of the government could be to muddle through until elections, leaving the resolution of the holdouts issue for the next administration,” said Miguel Kiguel, a former finance secretary who runs the EconViews consultancy.

Analysis. Commodities

Big holder shows up aluminium trade issues Dominant operator highlights long warehouse queues that allow space for large bets

Aluminium LME stocks (tonnes, m)

LME 3-months price ($ per tonne)

5.6 HENRY SANDERSON

2400

5.4

For years buyers of aluminium have put the metal in warehouses, borrowed against it, and waited for prices to rise. It was an obvious trade. Now the metal is finally starting to leave warehouses, but much is still held up in long queues. That has opened up space for large trading bets that have raised questions over how efficiently the market is functioning. Aluminium is one of the world’s most important metals, used in cans, cars and aeroplanes and valued for its lightweight properties. It is being used increasingly by US automakers to meet fuel-efficiency standards. The London Metal Exchange acts as a source of metal at times when aluminium is in short supply elsewhere. Exchange data show that at the end of November one entity had accumulated an aluminium holding of 50-79 per cent of the metal on the LME, the world’s largest metals exchange. The appearance of a dominant holder highlights how persistent problems with the working of an official warehouse system have allowed for the placing of large trades. These trades, which are in effect bets on the spread between spot and futures prices, could also give holders increasing influence over prices just as demand for aluminium has picked up due to rising use by the auto industry, while supply has tightened following the closure of smelters. The dominant holder drove the November 27 spot price $31 higher than the price for delivery in three months, the highest spread since December 2012. Since then it has come back down, as rumours that one large trading house had been squeezed by the dominant holder faded. “Queues restrict the lending capacity of the market which leads to a further tightening of the available liquidity,” Robin Bhar, an analyst at Société Générale says. Stocks of aluminium on the LME have fallen 21 per cent this year to 4.3m tonnes, yet more than half of that is sitting in warehouse queues waiting to be loaded out. The actual so-called “free float” metal, in storage and available to trade, is even smaller, say market participants.

2200

5.2 5.0

2000

4.8 4.6

1800

4.4 4.2

1600

2011 12

13

14

Aluminium premium over LME cash price $ per tonne US midwest free market aluminium EU free market aluminium 600 Singapore aluminium 500 Japan aluminium 400 300 200 100 0 2011

12

13

14

Sources: Thomson Reuters Datastream; Bloomberg

Demand has picked up due to rising use in the auto industry, such as on this Audi assembly line in Germany Thomas Kienzle/AP

In LME warehouses in Detroit, for example, only 16,075 tonnes of stock are in storage, whereas 928,700 tonnes are waiting in the queue. “The person who is effectively building the dominant position only has to go for the free float, and you remove the liquidity from the LME,” one trader says. “By definition you control all the stock that is freely available.” The dominant holding in aluminium has mirrored what has happened in the copper market, where a single entity has also accumulated a majority holding, starting in September. The aluminium market has been the subject of heightened scrutiny in recent years. During a hearing of the US Senate investigation into banks’ commodities business this month, investigators queried how Goldman Sachs came to own about 1.5m tonnes of aluminium in 2012, worth $3.2bn, and more than 25 per cent of annual North American consumption at the time. Goldman

said it had acquired the large position to meet demand from clients. Low interest rates after the financial crisis and a market that has spent long periods in “contango” — where futures prices are higher than current ones — led to mass storage of aluminium in warehouses. Buying and borrowing against the metal and paying warehouse rents while waiting for higher prices provided relatively risk-free returns of up to 7 per cent. Users of the metal have claimed that this inflated costs for consumers, and reduced metal for actual consumption. Indeed, premiums for delivery of physical aluminium in the US, Europe and Japan have risen to record highs this year. Queues for warehouses in Detroit owned by Goldman Sachs and by mining company Glencore in the Netherlands are still more than 550 days. Analysts say this is nothing to worry about as the market self-corrects after the appearance of a dominant holder. In

addition LME rules require that holders with positions greater than 50 per cent must lend metal at fixed rates. “The LME constantly monitors its markets to ensure that trading is orderly,” the LME said in response to a question on aluminium. The LME has also vowed to reduce queues and next year will introduce a contract allowing users to hedge the high aluminium premium. Yet the reduction in queues in Detroit and in the Netherlands is likely to take years, analysts say. Large holders are also likely to continue to appear to squeeze the market. “From a historical standpoint things are definitely not back to normal. The LME for the consumer remains dysfunctional,” Jorge Vázquez, managing director of Harbor Aluminum Intelligence, says. “Today consumers can’t really use the LME as a market of last resort. Maybe conceptually they can but in practice they can’t.”

Currencies

Equities

Strong dollar hits US corporate profits

Sharp sell-off in Greece as outlook fears return

ERIC PLATT — NEW YORK

A strengthening dollar is proving costly to companies across the US and Europe. The rising greenback shaved $8bn off North American and European thirdquarter sales, with more than 275 companies warning of negative foreign exchange impacts in the period, data from consultancy FiREapps show. The dollar, which climbed nearly 8 per cent against the euro and Japanese yen in the quarter to September 30, was an added hitch for companies dependent on foreign sales, particularly as economic growth in Europe and Asia disappoints. The total currency effect on revenues rose 196 per cent from a quarter earlier, the report found, as FX volatility rose. FiREapps, which analysed the earnings

calls of 1,200 publicly traded companies with at least 15 per cent of revenues derived from a foreign market, says that trend will probably continue. US companies that quantified the foreign exchange impact on profits said earnings were on average reduced by 3 cents a share due to currency swings. Diverging monetary policy in Europe and the US has driven a wedge between one of the most active currency pairs, with strategists at Bank of America Merrill Lynch forecasting the euro to weaken by another 10 cents against the dollar by the end of 2016. More than two-fifths of S&P 500 sales were generated abroad in 2013, data from S&P Dow Jones Indices show, presenting a challenge to a vast majority of the index’s constituents. The euro was most often mentioned as a culprit in the 846 US corporate

earnings calls analysed by FiREapps, followed, in order, by the yen, rouble, Brazilian real and Venezuelan bolívar. Executives with Hewlett-Packard, Campbell Soup and Salesforce warned recently that currency headwinds would weigh on results, while Philip Morris International chief executive André Calantzopoulos said his company had “been hammered by currency this year to a much higher degree than we possibly could have anticipated”. General Motors called the Russian rouble “a headwind for us, no question”, with the Turkish lira and UK pound also key to the company’s European results. Strategists note a stronger dollar and weaker pricing power could curtail profit gains, with S&P 500 year-on-year earnings growth expectations currently sitting at 9.3 per cent. That, in turn, could hit stock performance.

CHRISTOPHER THOMPSON

Greek stocks and bonds saw another sharp sell-off yesterday amid mounting fears about the country’s future within the eurozone and rising political uncertainty. Greece’s stock market declined by 7 per cent following the worst one-day fall since the late 1980s earlier this week. Benchmark 10-year government borrowing costs rose by 50 basis points to yield 8.79 per cent. The decline means the Athens bourse has shed nearly a fifth of its value this week after the announcement by Antonis Samaras, prime minister, of a snap presidential election later this month. If he fails to win sufficient support for his candidate, an early general election could follow which investors fear will

bring to power the radical left Syriza party that has campaigned on an antiausterity platform. “Further volatility cannot be ruled out given the event risk over December,” said Peter Goves, an analyst at Citi. Political instability also led investors to price in a greater chance of Greece defaulting on its debt, pushing the costs of insuring benchmark government bonds up by 10 per cent. In contrast to the contagion seen during the eurozone sovereign crisis three years ago, worries over Greece’s future have had a limited impact on other peripheral economies so far. “At the moment you’re seeing a slightly softer tone in the wider periphery — it’s relatively muted but it’s there,” said Mr Goves. “The debt ownership structure of Greek debt has changed considerably

over recent years, with the majority now held in the official sector — so in that sense it’s quite different to 2011.” Italian and Spanish borrowing costs remained broadly stable, although they have risen by 11 basis points and 9bp respectively this week. Didier Saint-Georges, a member of the Paris-based fund group Carmignac’s investment committee, said Greek uncertainty was not “viral” for the rest of southern Europe. “It shows that whole European situation is not hostage to what is happening in Greece,” said Mr Saint-Georges. “We do own a little bit of three- and five-year [Greek] bonds and we are keeping them. The market has reacted a lot domestically — a bit too much — and the fact there’s no contagion shows that it’s not such a game-changer.”

★

Friday 12 December 2014

27

FINANCIAL TIMES

MARKETS & INVESTING Global overview

TRADING POST

Jamie Chisholm The eurozone “convergence” trade has worked well for most of 2014. But is it time to bet on a reversal next year? Convergence refers to tightening spreads between the eurozone’s core bond yields, such as Bunds, and the more fiscally-challenged periphery, such as Spain and Italy. On January 1, the extra yield Madrid had to pay to sell its paper compared with Berlin was 222 basis points. It is now around the 120bp mark. Rome had to stump up 219bp more, but that has dwindled to 135bp. This tightening has played out over a few years since the height of the Greece-inspired eurozone debt crisis. In 2012, both Italy and Spain had to pay greater than 500 basis points more than Germany. Tighter spreads reflect two things. First, a shift from worrying about risk premium on peripherals and greater emphasis on waning growth alongside disinflation. Second, investors are front running the expected launch of full-blown US-style quantitative easing by the European Central Bank. In other words the buying of sovereign debt. But this week spreads have nudged up from the year’s lows as the prospect of a possible “Grexit” exercises investors. And traders must try and figure out how much of the mooted ECB QE is already baked into yields. Should president Mario Draghi disappoint then that should cause spreads to widen again. Pay particular attention to Italy, close to deflation and with debt to GDP among the highest in the bloc. [email protected]

Spanish-German 10-year bond spread

Basis points

2010

12

14

600 300 0

Source: Thomson Reuters Datastream

US retail data help risk aversion fade despite oil near five-year lows Bond yields rise as dollar gains ground against yen and puts pressure on Treasuries while investors consider Fed’s next move FT REPORTERS

Wall Street shrugged off soft sessions in Asia and Europe, as signs emerged that the global market’s latest bout of risk aversion may be fading even as the oil price flirted with fresh five-year lows. Sentiment was supported by evidence that the US consumer is still in good spirits. US retail sales rose by a bigger than expected 0.7 per cent last month, lifting the S&P 500 1.4 per cent to 2,053 by midday in New York, recovering from a 1.6 per cent slide on Wednesday driven by anxiety over oil prices. The upbeat data also helped the dollar gain ground against the “haven” yen and put pressure on policy sensitive twoyear Treasury notes, as investors contemplated more imminent monetary policy tightening from the Federal Reserve. “Strong retail sales data helped place further flattening pressure on the Treasury curve as five-year notes and 30-year notes tested new lows,” Gennadiy Goldberg, an analyst at TD Securities, wrote in a note. “This suggests investors continue to pull forward the anticipated timing for rate hikes as the US economy continues to lead growth momentum amid a weaker global recovery.” Causes of Wall Street’s recent sell-off, and the accompanying global wobble, continued to be debated among traders. The main suspect is the slumping oil price. Brent crude fell below $65 a barrel on Wednesday for the first time in half a decade after Opec cut forecasts of demand to the lowest in 12 years. Brent

Bryce Elder Two months after a bid from AbbVie collapsed, investors have been feeling more comfortable with the idea of Shire staying independent. Shire rose 3.1 per cent to £45.65 yesterday in reaction to the drugmaker’s R&D meeting in New York a day before. The stock has rallied 23 per cent from its low point in October, when AbbVie abandoned a $54bn bid and paid a $1.64bn termination fee.

rose 20 cents to $64.44 yesterday. Many investors are wary that the slide in energy costs is not just reflecting rising production in the US but is evidence of waning demand — a signal that the global economy is in worse shape than some analysts think. There are also concerns that some oil exporting countries that need higher oil prices to manage their economies are being forced to sell assets in their investment portfolios to raise cash. And they are dumping the growth-focused ones first; in other words, reducing exposure to equities rather than sovereign debt. This highlights another possible reason for the stock market slide: the par-

At the meeting, Shire stuck with guidance of doubling sales to $10bn by 2020 through pipeline development rather than with one transformational acquisition. Analysts have estimated that Shire has the capacity to raise up to $13bn in debt for takeovers. “These assets remain exceedingly attractive,” Cowan & Co told clients. “There is good duration in the current on-market portfolio, the pipeline appears to hold potential significant value, the annual cash flows are solid, the management team is very talented and appropriately aggressive, and the balance sheet is net cash positive. Few entities look like this.” Oil and miners dragged on the FTSE 100 lower for a fourth straight day, down 0.6 per cent or 38.34 points at 6,461.70. Glencore lost 3.7 per cent to 294.9p, its lowest since mid 2013, in response to news that the miner had raised its 2015 capital expenditure guidance by $1.3bn during an investor day on Wednesday. Legal & General was up 2.2 per cent to 246.6p after Nomura turned positive in a 2015 insurance sector preview.

A short squeeze lifted Quindell 9.9 per cent to 36p, which dealers said may have been triggered by this week’s sale of about 24m shares by founder Rob Terry. The cost of borrowing Quindell stock hit its maximum level, Markit data showed, while filings revealed Roble, a vehicle of US hedge fund Tiger Global, had reduced its short position to 2.72 per cent from 3.92 per cent. IGas, the UK shale gas developer, lost 14.8 per cent to 39p after Canaccord Genuity raised concerns over its debt levels. The broker, which added a “speculative” tag to its previous “buy” recommendation, forecast that at current oil prices the liquidity and leverage covenants on iGas’s $165m of bonds “could be challenged”. Canaccord’s concerns overshadowed rumours in the market that IGas is a potential takeover target for a Swiss chemicals company. IOMart bounced 6.3 per cent to 172.5p amid bid speculation and on an upgrade from N+1 Singer. It argued the cloud computing specialist had been oversold earlier in the week on news of a slowdown at its hosting division.

Jan

50 Dec

2014

Source: Thomson Reuters Datastream Day's Indices S & P 500

Close

change

2055.25

29.11

DJ Industrials

17753.97

220.82

Nasdaq Comp

4758.34

74.32

Russell 2000

1161.86

-26.20

VIX

London Investors warm to Shire’s independence

Markets’ macro speedbump: FT.com/video John Authers asks Jeffrey Kleintop at Charles Schwab whether US markets can keep rallying if the rest of the world slumps

A cholesterol treatment could reach $3bn in sales, Mr Risinger added. Shares in Eli Lilly advanced 5 per cent to $74.68. Urban Outfitters led the benchmark S&P 500 after the company said samestore sales in its current quarter were “low single-digit positive”. Wall Street had projected a 2.5 per cent rise in comparable store sales in midNovember. The US retailer has had strong results at its Free People and Anthropologie brands, while its eponymous division has struggled to increase sales. Analysts at Wells Fargo said Urban Outfitters was beginning to make progress at its namesake brand, and expected that trend to continue. “While some of the improvement at Urban Outfitters has been promotionally driven, e-commerce has been strong at each brand, though

70 60

Eli Lilly shares were buoyed by a brokerage upgrade yesterday as Morgan Stanley analysts gained confidence over the drugmaker’s product pipeline. Morgan Stanley raised its rating from “underweight” to “overweight” on the view several of its treatments could prove to be blockbusters. “Recent external data readouts in major disease states — atherosclerosis and Alzheimer’s — make us more confident that Lilly management is making the right pipeline investments,” David Risinger, an analyst at Morgan, said. The investment bank, which also increased its price target to $85 from $60, said peak sales from the company’s closely watched Alzheimer’s treatment could hit $10bn, if studies prove it effective.

Mark Lennihan/AP

stores have been slower to improve,” Paul Lejuez, an analyst at Wells Fargo, said. “ We believe fourth quarter comps will finish above our previous estimates.” The company climbed 10 per cent to $33, lifting its market valuation to $4.3bn. Shares in Staples, the US office supplies chain, surged 10 per cent to $16.28 after a well-known activist investor disclosed a stake in the retailer. Starboard Value, an activist investor whose current targets include Yahoo, has taken a 5.1 per cent stake in the business, and has increased its holding in rival supplier Office Depot to 10 per cent. Staples, which has more than 1,800 stores, has been trimming costs as it faces stiffer online competition as well as diminished demand for some key office supplies such as paper. Office Depot shares rose 13 per cent to $7.61. Lending Club, the world’s largest peer-to-peer lender, climbed 65 per cent to $24.75 during the company’s debut on the New York Stock Exchange, valuing it at $8.9bn. Competing for attention on the IPO front, Momo, the Alibababacked messaging application, climbed nearly 6 per cent to $14.25 as shares began trading. Overall, US equity markets ended three days of losses, as data showed stronger than expected retail sales. The S&P 500 climbed 1.4 per cent to 2,055.41 while the Dow Jones Industrial Average advanced 17,754.43. The technology-heavy Nasdaq Composite increased 1.6 per cent to 4,759.61.

Share price ($)

Eric Platt

S&P 500 index Change on day

18.53

3.64

US 10 yr Treas Bd

2.21

0.05

US 2 yr Treas Bd

0.61

0.04

ing of previously winning trades through 2014. As the end of the year approaches, the S&P 500 is still up 9.6 per cent, while those investors who have bet on a strong dollar and weak yen have made hay. Some profit-taking was inevitable and is occurring in seasonally thinner conditions, exacerbating volatility. The CBOE Vix index, a gauge of expected US equity volatility, ended last week at 11.8 but closed on Wednesday at 18.5 — a jump of 57 per cent. Yesterday, the Vix was back down to 16.4. US bond yields, having fallen all week on risk aversion buying, rose yesterday following the retail sales figures. The US 10-year yield rose 4 basis points to 1.86

Trading Directory

per cent, while the two-year yield likewise climbed 4bp to 0.61 per cent. The dollar index, which on Monday hit a five-year high of 89.55, was up 0.4 per cent on the day at 88.67. The yen this week touched a seven-year low versus the buck of Y121.84, but yesterday stabilised temporarily at Y119.39. Ten-year Bunds were at a record low of 0.67 per cent as French and German inflation hovered at multiyear lows. The demand for high-quality European debt also reflected a revival of eurozone fears after Greek stocks fell and bond yields spiked on forecasts that an anti-austerity party could win the next election. Yesterday, the Athens stock market fell another 7 per cent and benchmark bond yields rose 44bp to 8.9 per cent. Weakness in miners weighed on European stocks, but the FTSE Eurofirst 300 pared losses to close the session 0.1 per cent higher. Finally, a number of analysts speculated that Tuesday’s 5.4 per cent slump in China’s stock market, on talk of tighter credit conditions, provided an extra frisson to the global anxiety. But things in Shanghai seem to have calmed down: the composite index slipped just 0.5 per cent yesterday. Elsewhere in Asia, Hong Kong’s Hang Seng index lost 0.9 per cent, led by energy stocks, as authorities began to dismantle barricades in an effort to end more than two months of civil disobedience in the Chinese territory. Tokyo’s Nikkei 225 fell as much as 2.1 per cent in early trading but the loss was pared to 0.9 per cent as the yen weakened. The benchmark average briefly rose above 18,000 this week — a seven-anda-half-year high — but has since fallen 4.1 per cent. Reporting by Jamie Chisholm in London, Anna Nicolaou in New York and Patrick McGee in Hong Kong

1.53% 2080 2060 2040

Nov

Eli Lilly

Wall Street Optimism over Eli Lilly treatments pipeline drives 5% advance

Markets update

2014

2020 Dec

US equities Stocks advanced on Wall Street, snapping a three-day losing streak, after stronger retail sales data renewed optimism about US growth prospects

FTSE 100 index 0.59%

Change on day

Nov

2014

6800 6700 6600 6500 6400 Dec

UK equities The FTSE 100, dipping to a six-week low, was led by mining companies. The mining index fell 2 per cent, dragged down by weak commodity prices

Eurofirst 300 index Change on day

0.02%

1400 1380

Nov

2014

1360 1340 Dec

European equities Stocks were weighed by political uncertainty in Greece. Greek shares fell 7 per cent, while the Eurofirst 300 index ended the session little changed

Nikkei 225 index (’000) Change on day

0.89%

18.0 17.5 17.0

Nov

2014

16.5 Dec

Asian equities Japanese stocks fell and the yen capped a three-day rally yesterday, driving down energy shares and exporters

28

★

Friday 12 December 2014

INSIGHT

Analysis. Capital markets

Ralph Atkins

Cheap energy bonds fail to tempt rally

Watch out for ‘ouch’ potential of global volatility in 2015

G

reece’s stock market crashes. Shares plunge in Shanghai. Tumbling oil prices hit junk bond markets and emerging market currencies. The trend seems clear: this year is ending in a burst of volatility. In fact, 2014 will go down in financial history as a year of exceptional calm. For all the worries about economic fragilities and geopolitical risks, measures of market choppiness have, mostly, stayed low. The closest watched is the Vix index of expected US share price volatility, known as the “Wall Street” fear gauge but really an indicator of global investor nervousness. The Vix has averaged the lowest since 2006, a year of halcyon calm. What we have seen have been volatility spikes — shortlived periods of turbulence, or big price swings, which quickly calm. One such period was a week in October which saw a “flash crash”, or sudden drop, in US Treasury yields. Then reassuring comments by central bankers restored calm. This week looks like another such spike — although the Vix has still to reach October’s levels. For investors preparing for 2015, what matters is whether the hedgehog-like pattern remains mostly harmless — in other words, that average levels of volatility do not rise excessively. Predicting volatility patterns is as perilous as forecasting any market trend. But for the benefit of nervous investors, here are some reasons why this year’s “low with spikes” experience could continue — and some why it might develop into something more worrisome. A good reason for expecting relative stability, and seeing spikes simply as buying opportunities, is the stillEuropean mesmerising influence of central banks. That may present political risk is long-term problems: “Marlikely to be a kets’ buoyancy hinges on central banks’ every word and main theme in deed,” observed Claudio the coming year Borio, head of the monetary and economic department at the Bank for International Settlements this week. But lately, central bankers have been successful in avoiding volatility. The US Federal Reserve ended its “quantitative easing” programme without upsets. Policy loosening by the European Central Bank and Bank of Japan has extended global rallies in equities and bonds. A less benign reason for believing calm will continue is that low economic growth and low inflation are usually associated with subaverage market volatility. Changes in financial regulation, however, may have increased market wobbliness. October’s “flash crash” showed that even in the huge US Treasuries market, sudden liquidity constraints could lead to wild price fluctuations. “In short, we think the world we live in is a world of low base-level volatility, but with increasingly frequent and sudden jumps,” UBS analysts concluded in a recent note. It is easy to see how those wobbles could build into generally higher volatility. While tensions over Ukraine or in the Middle East have largely been brushed off, European political risk is likely to be a main 2015 theme. Greece’s woes are again posing a threat to the eurozone’s integrity. Meanwhile, tumbling oil prices have shifted economic power away from oil exporters, with implications for global capital flows, and the BIS warned this week a stronger dollar was piling pressure on emerging market economies thathavereliedonUScurrencydenominateddebt.Inturn, the dollar’s appreciation results from growing divergence in central banks’ policies — also a source of potential volatility. For all their communication skills this year, differences have become starker as oil has fallen. Mario Draghi, ECB president, is focused on downward risks to alreadydangerously low inflation. In the US and UK, central banks want to normalise policies. William Dudley, Federal Reserve Bank of New York president, stresses the likely boosttoconsumerspendingfromlowerenergycosts. “That is an incredibly important difference in the mindsetsofcentralbanks,”saysScottThiel,fixed-incomestrategist at BlackRock. Then there are the perennial risks of a China slowdown and global currency wars. As such, 2014’s lowvolatilitymayhavemaskedunderlyingvulnerabilities. Of course, a bit more market volatility might be healthy. It would keep traders on edge and act as a check against excessive risk-taking — get too close to a hedgehog’s prickles and you go “ouch”. But that assumes volatility remains within limits — and does not become an animal that bites. [email protected]

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Investors in junk-rated debt err on side of caution amid retreat in crude prices

Maturity time bomb looms in 2017 Bond maturity schedule for energy bonds

Top 10 US high-yield energy issuers*

$bn 50

VIVIANNE RODRIGUES — NEW YORK

Junk-rated energy bonds are looking cheap following a sell-off that has mirrored recent losses for oil prices, but bargain hunters are thin on the ground as dangers for the sector offset the discount. Low-rated energy bonds have not been this cheap in years, with some analysts’ estimates showing 18 per cent of energy sector issues in the Bank of America Merrill Lynch index are distressed, with prices well below face value. Junk bonds have moved in tandem with oil markets, where crude prices have dropped about 40 per cent since midsummer to trade below $65 a barrel on Wednesday. The plunge in prices has also weighed on major energy stocks across the globe. The S&P 600 energy sector has fallen 50 per cent from its peak in June. But while some investors see the drop in bond prices as an opportunity to buy back some of the securities at a hefty discount, others say it is too soon to add exposure to the sector given the volatility in oil prices. “This is a stunning drop. Who would have imagined just a couple of months ago that oil would be trading below $65 a barrel?” asks Sabur Moini, a high-yield portfolio manager at Payden & Rygel. “This sell-off is really challenging. On one side, we are all seeing some bonds, sold by some high-quality energy companies, suddenly become really cheap. But at the same time, it’s hard to justify buying energy debt right now as markto-market losses in portfolios are still mounting.” As of the start of December, junkrated energy debt has recorded a total return of minus 5.3 per cent, while the broad BofAML Index has gained about

40

30

ICE January Brent, the international crude marker, rose 21 cents to $64.24, while Nymex January West Texas Intermediate, the US oil benchmark, ticked 12 cents lower to $60.77 in late trading. A weaker US dollar provided further support for oil. Brent dropped almost $2.50 on Wednesday while WTI lost close to $2.90 after Opec said demand for the cartel’s crude in 2015 would be the lowest in a decade and below current levels. Heaping more pressure on oil prices were data from the US Energy Information Administration that showed an increase in crude stocks even though refiners were producing at record levels. The declaration from Saudi Arabia’s oil minister that the country had no intention of cutting production, in defence of higher prices, also pushed the price of oil lower. “Why should I cut production?” said Ali Al-Naimi at a conference in Lima. “This is a market and I’m selling in a market. Why should I cut?” At the meeting of Opec last month, Saudi Arabia — cartel’s leader and top producer — and its Gulf allies resisted calls from their poorer peers to cut production in order to balance the market. Sustained output from the oil producing group has coincided with relentless produc-

10

15

US marketed high-yield bonds 20

10

0 2014

15

16

17

18

19

Sources: Fitch US high-yield default index; Bloomberg; Dealogic

Oil price holds below $65 as data digested Oil stabilised yesterday but remained below $65 a barrel and close to a five-year low as market participants digested data that weighed on the oil price and continued to address the fallout of Opec’s decision not to cut production.

5

* In the last decade

Commodities

NEIL HUME AND ANJLI RAVAL

Deal value ($bn) 0 Chesapeake Energy Petroleos de Venezuela Plains Exploration & Prod Sabine Pass Liquefaction LINN Energy California Resources Denbury Resources Continental Resources SandRidge Energy Pacific Rubiales Energy

tion from the US and a weak consumption picture. The decision to stick to its 30m barrels a day output target has sent the price of oil spiralling lower — it is almost 45 per cent below its midJune level of $115 a barrel. “If the price is going to move anywhere, its going to go down,” said Michael Wittner, analyst at Société Générale. “[Wednesday’s] news flow underscores the key theme that has emerged from recent weeks, which is that prices will balance the market. US stats were bearish, Opec trimmed its demand forecasts and Naimi reinforced his message,” he said. Mr Wittner said oil market analysts would be watching announcements from oil companies to see how they respond to lower prices at the same time as keeping track of data on investment, production and rig counts. “We’ve started to see how some of the big oil companies are responding to a lower oil price environment. It’s only a matter of time for the smaller companies,” he added. Opec said in its monthly report that demand for its crude is estimated to stand at 28.92m barrels a day in 2015, which would be the weakest level since 2004, according to historical data. This is a downward revision of about 300,000 b/d from previous estimates. The figures indicate there will be a surplus of 1.13m b/d in 2015, and 1.83m b/d in the first half. Laura El-Katiri, a research fellow at Oxford Institute for Energy Studies, said it was important not to overinterpret the latest data from the producers’ group.

20

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22

23

24

2014=one month, 2024=years later than 2023

3.1 per cent. The drop in prices has pushed average yields on junk-rated energy bonds close to 9 per cent, compared with overall yields of 6.8 per cent for high-yield debt. “Those yields are tempting, especially when you know that some companies are well hedged for 2015,” says Mr Moini. “But with so many people nervous about these bonds, it’s probably best to err on the side of caution.” The pressure on junk-rated energy bonds has raised fears of an increase in default rates and a restructuring of issues — which have remained subdued since the financial crisis — should oil prices slide further. That is a problem for credit investors because energy companies have issued a large amount of debt in recent years, with the energy sector now accounting for about 16 per cent of the $1.3tn junk

Deal value ($bn) 400

Oil & gas sector (as a % of total) 20

300

15

200

10

100

5

0 2000

0 05

10

14

2014 is year-to-date

bond market, up from a share of 4 per cent a decade ago. Nearly $77bn of energy debt is rated B minus or lower, deep into junk territory, according to Fitch Ratings. “A further drop in oil will be painful for some of these companies and we may see some of them fail or be acquired,” says Michael Collins, a senior investment officer at Prudential. “The problem is that everybody has some degree of exposure to the sector and even if you cut your holdings, chances are you are still holding energy bonds.” The gloomy sentiment has weighed on the appetite for debt issuance from energy companies and resulted in borrowers delaying new rounds of financing. Bankers are saying that few energy deals are likely to get done as long as oil continues its downward slide. “New issue in energy right now is not

what people are looking for,” says Peter Toal, head of leveraged finance syndicate at Barclays. Still, energy bond issuers may have breathing room as the bulk of high-yield energy debt outstanding does not reach maturity until 2017, when about $13.7bn worth of bonds are due, according to Fitch. In addition, the default environment for the US high-yield market is expected to remain benign in 2015, even when accounting for potential troubles in the energy group. The corporate default rate for 2015 is forecast at 1.5-2 per cent — below the 4.3 per cent historic average, the rating agency says. “For now, we are all licking our wounds and sniffing out opportunities,” says Mr Collins. “But is this the right time to get back in or is it too early?” Additional reporting by Tracy Alloway in New York

WORLD BUSINESS NEWSPAPER

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Why the capital should leave Little England — PHILIP STEPHENS, PAGE 11

Apple’s Tim Cook steps out from Jobs’ shadow — BIG READ, PAGE 9

FT teams up with International Rescue Committee — PAGE 6

EU stagnation fears resurface as cheap loans sale falls short

Start of the peer-to-peer show as Lending Club leaps 65% on debut

Briefing i Google shuts news service in Spain Google is shutting down its news service in Spain in response to an increasingly hostile legal and political environment in Europe.— PAGE 15

i Banks probed over forex algorithms New York’s regulator is probing whether the use of algorithms in currency trading was systemic at Barclays and Deutsche Bank.— PAGE 15

i Europe on road to safer trucks EU governments have agreed rules that could put an end to the brick-shaped lorries that campaign groups say are inefficient and dangerous to other road users.— PAGE 15; INDUSTRY WINS DELAY, PAGE 18

i Carney sweeps aside secrecy at BoE Mark Carney, Bank of England governor, swept aside some of the secrecy around the bank’s deliberations, promising to publish minutes of interest rate decisions when they are announced.— PAGE 4

ECB policy makers divided over bringing in full-on quantitative easing CLAIRE JONES — FRANKFURT

Hopes that the European Central Bank will resort to a full-scale programme of government bond purchases rose yesterday after a poor take-up of cheap ECB cash sparked fresh doubts about policy makers’ efforts to stave off stagnation. The bank injected €129.8bn into the eurozone’s banking system through another offer of four-year loans, but the figure missed all but the most modest of market expectations. The ECB plans to swell its balance sheet by €1tn to a level last seen in 2012, as part of efforts to lift inflation and boost growth in the eurozone. Prices rose by 0.3 per cent in the year to November, raising fears that the region could be heading for a prolonged period of Japan-style stagnation. Those concerns were underscored yesterday when France posted a 0.2 per cent fall in retail prices between October and November, a bigger decline than economists had forecast. But the ECB is split over whether to embark on full-blown quantitative easing as a way to achieve its goals. Such a policy is strongly opposed by Bundesbank president Jens Weidmann and other hawkish members of the bank’s governing council. They believe that the central bank’s existing measures, which include buying covered bonds and asset-backed securities, and auctioning cheap cash to eurozone lenders, will be enough to raise inflation to the ECB’s target of below, but close to, 2 per cent. Analysts

think that the disappointing take-up of the auction has weakened their hand. Nick Matthews, economist at Nomura, said: “The result reduces the strength of the ECB hawks’ argument that existing policy measures are enough.” Meanwhile, fresh evidence emerged of the diverging fortunes of the US and eurozone economies. US retail sales rose 0.7 per cent in November, the most in eight months, in a sign that faster jobs growth and the rapid drop in petrol prices were boosting consumption. The strong numbers will further increase the US Federal Reserve’s confidence in the growth outlook for 2015 and make an interest rate rise by the summer more likely. The probability of full-blown QE in the eurozone increased this month when the ECB changed its language to say it “intended” rather than “expected” to ramp up its balance sheet to €3tn. Yesterday’s auction suggested it would struggle to do so without further action, especially as banks are expected to have to repay hundreds of billions of euros in outstanding ECB loans in the coming months. “The bottom line is that this should help shift the policy debate to policies fixed on stimulating demand,” said Huw van Steenis of Morgan Stanley. “We think the measures the ECB has announced so far will fall short . . . by €400bn and €600bn.” Additional reporting by Robin Harding in Washington

i Russia and India renew frayed ties Russia and India agreed to renew their frayed relationships in energy, defence and trade, with the construction of at least 10 more Russian nuclear power reactors in India.— PAGE 2

i South Africa urged to push growth South Africa urgently needs to tackle structural problems that are stalling growth, the International Monetary Fund has warned.— PAGE 3

i Cheap energy bonds fail to tempt Junk-rated energy bonds are looking cheap after a sell off that has mirrored losses for oil prices, but bargain-hunters are thin on the ground.— PAGE 26

i Ecclestone vows to maintain grip on F1 Renaud Laplanche, left, founder and CEO of Lending Club, and CFO Carrie Dolan ring the starting bell at the New York Stock Exchange yesterday — Richard Drew/AP TRACY ALLOWAY AND ERIC PLATT — NEW YORK

Lending Club, the San Francisco start-up that set out to bypass traditional banking, captured the attention of Wall Street yesterday as it listed on the New York Stock Exchange and promptly shot to a valuation of $8.9bn. Shares in the world’s biggest peer-to-peer lender began trading at $24.75, delivering an instant 65 per cent gain to investors who bought in at the listing price and valuing Lending Club above S&P 500 constit-

Lex page 14 Short View page 15

uents such as Nasdaq, Pitney Bowes and Hasbro. “It is a good day for Lending Club,” said Lawrence Summers, the former US Treasury secretary who is on the company’s board and whose 1m shares are now valued at nearly $25m. Other prominent investors include Mary Meeker, the famed technology analyst; John Mack, the former Morgan Stanley chief executive; and Hans Morris, the long-time Citigroup banker and former president of Visa who also sits on Lending Club’s board. The listing is widely viewed

as a coming of age moment for the entire peer-to-peer, or marketplace lending, industry. Two other alternative lenders, OnDeck and SoFi, are waiting in the wings for their own IPOs. Lending Club sold 58m shares at $15 apiece on Wednesday evening, valuing it at $5.4bn in an initial public offering that was many times subscribed. In its first 10 minutes of trading, nearly 17m shares changed hands, or about 30 per cent of the free float. Lex page 14

Commerzbank close to $1bn deal with US over alleged sanctions violations KARA SCANNELL — NEW YORK GINA CHON — WASHINGTON

Juncker in the spotlight over sweetheart tax deals Over the past decade, a long list of US tech royalty from Amazon to Apple has set up their European homes in Luxembourg. Enticing the companies with sweetheart tax deals was hailed as another triumph of economic reinvention for one of Europe’s smallest enclaves. But 10 years on and the strategy has put its mastermind, Jean-Claude Juncker, under political fire as he reaches his career zenith as European Commission president. Report i PAGE 3

Commerzbank is in talks to pay US authorities in excess of $1bn in fines to resolve allegations that the German bank broke anti-money laundering and sanctions laws — at least $400m more than previously thought. The settlement is in the final stages of negotiations, people familiar with the matter said, and could be announced by the end of the year. Commerzbank had been in talks to pay more than $600m in penalties to state and federal authorities over the investigation into its dealings with Iran and other countries on the prohibited list, but a parallel probe by the US attorney’s office in Manhattan could nearly double that sum. As part of the deal, the German bank

is expected to agree to a deferred prosecution agreement, in which criminal charges are dropped after a set period if the bank does not break the rules again. The resolution, if reached, would be the latest in a string of non-US banks taken to task for violating US sanctions laws. BNP Paribas pleaded guilty and paid a record $8.9bn penalty to the US authorities this year. The US Department of Justice, New York’s Department of Financial Services and the New York county district attorney are investigating Commerzbank for business dealings with Iran, Sudan and other countries on the US sanctions list. The US attorney’s office in Manhattan has been looking into poor risk controls over the bank’s anti-money laundering compliance programme, these people said. Commerzbank and officials

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for the government agencies declined to comment. Commerzbank has disclosed the investigation into whether the bank breached US embargoes, “particularly with respect to Iran, Sudan, North Korea, Myanmar and Cuba”. It warned that it “cannot rule out” paying a “considerable sum of money in order to settle the case”. While the bank is expected to resolve both investigations in the deal now being negotiated, people familiar with the probe warned that the terms of the settlement had not been finalised and details could still change. The DFS had been seeking clawbacks of pay or disciplinary actions against bank employees with links to the alleged misconduct. It is not clear whether any related actions will take place as part of the settlement.

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Bernie Ecclestone is defying plans to clip his wings as Formula One chief executive, saying he will not give up power.— PAGE 21

Datawatch Cost of US petrol Minutes of work* required to buy a gallon of petrol 10 8 6 4 2 1950

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* US manufacturing workers Source: Lombard Street Research

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The average US manufacturing worker has to work 5.8 min to earn enough to buy a gallon of petrol. Under Bill Clinton it was 4.1 min; under George W. Bush, 5.5 min; and Barack Obama, until last year, 7 min.

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FINANCIAL TIMES

Friday 12 December 2014

INTERNATIONAL GLOBAL INSIGHT

Nuclear deal

Russia and India renew strained ties Putin turns focus from west to stronger links with emerging markets VICTOR MALLET — NEW DELHI

Russia and India agreed yesterday to renew their frayed relationships in energy, defence and trade, with leaders Vladimir Putin and Narendra Modi promising construction of at least 10 more Russian nuclear power reactors in India over the next two decades. “Today, we have outlined an ambitious vision for nuclear energy,” Mr Modi announced at a joint news conference with Mr Putin in New Delhi. At a time of increasing economic isolation of Russia by the west, Mr Putin has been keen to strengthen relationships with emerging market trading

partners. India, for its part, has neither criticised nor supported Russia’s annexation of Crimea and its involvement in eastern Ukraine. The recently commissioned 1,000megawatt first unit of the Kudankulam Nuclear Power Plant in south India, built by Russia, has already increased Indian nuclear electricity output by a fifth. Another reactor is due to begin operating next year, with two more to follow. In a tacit acknowledgment of the cost overruns and long delays hampering previous projects, the agreement commits India to finding a site in addition to Kudankulam for building more reactors. The agreement says both sides will seek “to minimise the total cost and time of construction of nuclear power units”. During the cold war, Russia was con-

sidered a loyal friend of India and became its main arms supplier, but in recent years New Delhi has sought to broaden its range of alliances and moved closer to the US and its Asia-Pacific allies Japan and Australia. Mr Modi struck up an apparently warm relationship with President Barack Obama on his visit to Washington this year and will host him at India’s Republic Day ceremonies in January. The US, in turn, is eager to boost trade and defence ties with India, and last year delivered more weapons to India than any other supplier. According to Samir Patil, a national security expert at Indian think-tank Gateway House, delays in Russian arms supplies, defective spare parts and arguments over cost have led to “troubled defence ties” between India and Russia since the cold war ended and have

Vladimir Putin with Narendra Modi in New Delhi yesterday

opened the door to US and Israeli manufacturers. Mr Modi nevertheless said “Russia will remain our most important defence partner” and announced that Russia had offered full manufacture in India of one its helicopter models. Among the 20 documents signed during Mr Putin’s one-day visit to India were several relating to co-operation in oil and gas, including one envisaging a joint study for a Russia-India pipeline and another between Rosneft and Essar for the supply of Russian oil to Indian refineries over the next 10 years. Mr Modi described collaboration in oil and gas as “disappointing”. Mr Putin, in an earlier interview with news agency Press Trust of India, said bilateral trade between the two countries fell by a tenth last year to $10bn. “It is important to reverse this trend,” he said.

Venezuela. Public anger

Socialism’s guardians weary of corruption

Economic reform has stalled, say critics, because it threatens powerful internal interests ANDRES SCHIPANI — CARACAS JOHN PAUL RATHBONE — LONDON

The mural above Ana Caona’s head in the gritty Caracas slum known as 23rd of January is no ordinary depiction of the Last Supper. Instead of disciples, the figures flanking Jesus Christ are rebel figures such as Mao, Lenin and Hugo Chávez, the former president. Yet despite these symbols of revolutionary commitment, Ms Caona is disenchanted with Venezuela’s socialist government as it grapples with falling oil prices and an economy ravaged by inflation, shortages and corruption. “There are internecine fights, micropowers within the revolution, everyone defending their interests,” complains this member of one of Venezuela’s militias, called colectivos, which consider themselves keepers of socialism’s sacred flame and also sometimes act as auxiliary state security forces. Ms Caona illuminates a growing public disaffection with President Nicolás Maduro’s government as oil prices have slid 40 per cent since June. She says her

colectivo has taken to delivering food staples around the neighbourhood so that supplies are not “mishandled by corrupt forces”. Her comment about “corrupt forces” also suggests why Mr Maduro continues to stall on the reforms the Opec country needs to shepherd itself through the oil price collapse and stave off default on its hard currency bonds, the highest-yielding among sovereign borrowers. “A serious economic adjustment needs a sincere economy . . . but for the government’s power groups the possibility of becoming millionaires is just too enormous,” says Mercedes de Freitas, head of the local chapter of Transparency International, which ranks Venezuela near the bottom of its corruption index. Removing a domestic petrol subsidy, as Indonesia has done, would save the government $12bn a year, economists estimate, equivalent to 6 per cent of economic output or a third of the fiscal deficit. But that would counter the interests of government insiders, such as senior military officers who, analysts say, continue to support the government and for whom cheap petrol allegedly fuels a contraband trade worth $4bn a year. “There are tremendous arbitrage opportunities,” says Felipe Pérez Martí, planning minister under Mr Chávez,

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who died last year. Another mooted reform is to dismantle the fixed exchange rate regime and let the bolivar currency float from 6.3 to the dollar to near the black market rate of over 170. That would translate into local currency gains from Venezuela’s dollar-denominated oil exports and close the fiscal deficit, currently financed by printing money. Yet devaluing could spark “a popular explosion”, says Ms Caona. It would also run foul of government insiders who supposedly enjoy access to subsidised foreign exchange. “Control of the economy has been taken by those defending their personal interests, their interest in capital accumulation,” says Nicmer Evans of Socialist Tide, a leftist group that criticises the government for self-enrichment and abandoning revolutionary values. Meanwhile, the economy worsens. The central bank estimates a minimum oil price of $117 a barrel is needed to supply sufficient hard currency to meet import and debt servicing needs. But the price of Venezuelan oil, which accounts for 96 per cent of export earnings, has plummeted to around $62 a barrel. To tide the country over, Mr Maduro has

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ordered a 20 per cut in government spending and sought alternative sources of financing, including fresh loans from China and a securitisation of debts owed by Caribbean allies such as Jamaica. Spreads on Venezuelan debt have blown out to over 2,000 basis points over US Treasuries — comparable to Russian spreads before its 1998 default. Mr Maduro, whose approval rating has fallen to 25 per cent, according to local pollster Datanalisis, has blamed unnamed interest groups and the opposition for problems such as 60 per cent inflation and the world’s second-highest murder rate. Last week, the government indicted Maria Corina Machado, a former congresswoman, for participating in an alleged assassination plot against Mr Maduro. On Wednesday, the US Congress voted to sanction Venezuelan officials for alleged human rights abuses. Yet Mr Maduro’s real problem may be that his ability to manage the country is being compromised by those around him and dwindling support in his traditional power bases. That includes among some of the more unpredictable colectivos, which showed their power in October when almost 260 groups refused government orders to disarm, and forced the interior minister to quit.

Roula Khalaf

Relief felt in western capitals as Qatar comes in from the cold

Q

atar has paid a heavy price for its controversial pro-Islamist policy over the past year. Dispensing with the pretence of brotherly relations, three of its hawkish neighbours, led by Saudi Arabia, withdrew their ambassadors from Doha in May and put the Qatari emir on notice. Months of heated rhetoric and leaks that went to the point of suggesting an invasion of Qatar followed. And then, in mid-November, Gulf rulers kissed and made up. “Truce Declared”, “New Page Opened”, splashed regional newspapers, with pictures of Sheikh Tamim bin Hamad al-Thani, the emir, planting a kiss on the forehead of the Saudi ruler in Riyadh. Soon after, Sheikh Mohammed bin Zayed, the Abu Dhabi crown prince, who was said to be even more angry with Qatar than his Saudi colleagues, arrived unexpectedly in Doha, where he and the emir walked hand in hand. This week, the reconciliation was consummated with Doha’s hosting of the summit of Gulf Co-operation Council, a meeting of the regional grouping that, just a few weeks ago, looked unlikely to happen. The relief at the end of this particular cold war in the Gulf (a more dangerous one, between Saudi Arabia and Iran, shows no sign of abating) was felt in western capitals, where the squabbling of the oil-rich states seemed increasingly petty in the face of the common threats they faced. The Gulf discord was over Qatar’s support for the Egyptbased Muslim Brotherhood, which was ousted from power last year in a military coup embraced by Saudi Arabia and the United Arab Emirates. Riyadh and Abu Dhabi have been determined to put an end to the spread of One test will be in Islamist politics elsewhere in the Arab world Libya, where the and, in effect, were Qataris and Emiratis demanding that Qatar join them. have been backing Sheikh Tamim, who different sides had just taken the reins from his father and was still consolidating his power, resisted the pressure. After all, rattling neighbours with an independent foreign policy has always been Qatar’s way of raising its profile. The spat did not subside. More pressing crises, meanwhile, confronted Gulf rulers: the rise of the Islamic State of Iraq and the Levant, known as Isis, the oil price fall and the growing influence of Iran in Iraq. “The word from the US was that there was a new enemy and that this [dispute] was not healthy,” says Andrew Hammond, a Qatar expert. “The Saudis realised that it was better to paper over the cracks now, and they impressed it upon the Emiratis.” Qatarofferedsomecompromises.SeveralseniorEgyptian Muslim Brotherhood leaders left Qatar and one of the group’s spiritual leaders, Sheikh Yusuf al-Qaradawi, no longer appears on a weekly show on the Qatari-owned Al Jazeera,althoughhestillspeakstotheprintmediainDoha. Hassan Hassan, a UAE-based analyst familiar with the details of the agreement struck last month, says Qatar has pledged non-intervention in other Gulf states’ affairs — Al Jazeera, for example, is expected to refrain from attacking other Gulf states but not end its sympathetic slant towards the Brotherhood. “Qatar always wanted to buy time and stall and play a waiting game, and the other Gulf states wanted to up the game and tell Qatar, we’re serious, but not get to the point of imposing sanctions,” he says. Across the Gulf, however, scepticism abounds over the depth of reconciliation and how long it will last. One test will be in Libya where the Qataris and Emiratis have been backing different sides in a widening civil war. Tarik Yousef, a Doha-based regional expert, says a compromise might have been reached on Libya as part of the reconciliation. Of greater concern to him is that the rift, particularly between Qatar and the UAE, was this time deep and personal and mobilised the public. “Tensions extended beyond the leadership into the community level, an unprecedented occurrence that will require more than high-level visits to undo,” he says. Such visits, he adds, will not be enough to “reverse the ill will”. [email protected]

US economy

Falling oil price fuels jump in retail sales before Fed meeting ROBIN HARDING — WASHINGTON

FT BUSINESS Tuesday, Friday & Saturday Business for Sale, Business Opportunities, Business Services, Business Wanted, Franchises

A boy passes a Last Supper mural in Caracas showing Chávez third from right. President Nicolás Maduro, below, is under pressure

MIDDLE EAST

The falling oil price is already encouraging US consumers to spend as retail sales raced ahead in November. Store and restaurant sales were up by 0.7 per cent compared with October and 5.1 per cent on a year ago, in a sign that faster jobs growth and the rapid drop in petrol prices are boosting consumption. The bump in retail sales is another sign of strength in the world’s largest economy, with the crucial holiday shopping season under way, and the US Federal Reserve meeting to set monetary policy next week. With the oil price still in freefall, down by almost $20 a barrel since the start of November, it is further evidence that US consumption will be strong enough to offset weakness elsewhere in the global economy. “The US is the world’s second-largest consumer of energy, after China, and the slump in the global oil price is already having a noticeable impact on its economy,” said Joseph Lake at the Economist Intelligence Unit. “It should provide a considerable boost to consumer spending next year,

when we expect it to help drive the fastestrateofeconomicgrowthforadecade.” If the oil price stays at around current levels next year, then consumers will have $100bn extra left in their wallets. Ted Wieseman at Morgan Stanley in New York said it was a “very positive

Central banks Norway and Russia move on interest rates Sliding crude prices have forced the central banks of two oil-producing countries to step in and support their economies. The Norwegian central bank cut interest rates to boost growth just as the Bank of Russia raised rates to halt a surge in inflation. Norges Bank has reduced its rate by 25 basis points to 1.25 per cent, a level reached only once before, in 2009 after the financial crisis. Oystein Olsen, the central bank governor, justified the cut by referring to “the outlook for the Norwegian economy [being] notably weaker than

report, confirming broadly based upside in discretionary spending moving into thekeyholidayshoppingperiod”. Excluding car sales, the pace of growth was a little slower, at 0.5 per cent over the previous month. Sales at petrol stations were down by 1.6 per cent, envisaged earlier” amid the sharp falls in oil prices. The Bank of Russia raised the benchmark interest rate by 1 percentage point to 10.5 per cent. This latest move brings the cumulative rate increase to 5 percentage points since the beginning of the year. The rate rise comes after inflation hit 9.5 per cent at the end of last week. The Russian central bank forecasts inflation will increase further, to 10 per cent in the first quarter of 2015. But the move failed to stop the fall of the rouble, which hit a record low of 55.47 to the dollar immediately after the rate rise. The Russian currency has lost 40 per cent of its value against the dollar since the start of the year. Richard Milne and Kathrin Hille

showing the direct effect of falling oil prices. The numbers are likely to boost further the Fed’s confidence in the growth outlook for 2015 and strengthen its confidence that interest rates will need to rise by the summer. The recovery of US households was also visible in new flow of funds data from the Fed, which showed consumer credit growing at a 6.4 per cent annualised pace in the third quarter. Overall growth in household credit was slower, at 2.7 per cent, reflecting tight lending conditions in the mortgage market. The net worth of US households dipped slightly in the quarter, from $81.49tn to $81.35tn, as a fall in equity values outweighed the increased value of their homes. Household wealth has recovered strongly since the recession, another factor boosting consumption, but it is unevenly distributed with rich households getting the most benefit. The even distribution of gains from falling oil prices, by contrast, is why they have such a strong effect on consumption. Gillian Tett page 11

FINANCIAL TIMES

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Friday 12 December 2014

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INTERNATIONAL

Juncker the tireless broker for low-tax Luxembourg Commission president was strategic mastermind in Grand Duchy journey from clapped-out steelmaker to ecommerce hub ALEX BARKER AND VANESSA HOULDER

Jean-Claude Juncker had a mischievous look. It was shortly before the 2004 election and Luxembourg’s then premier just could not keep the secret that his tiny Grand Duchy was reeling in another big corporate catch. AOL and Amazon were already moving to Luxembourg amid a flurry of interest from US internet companies. Jeannot Krecké, a rival politician, recalls Mr Juncker furtively hinting at more to come. After a pause, Mr Juncker cracked: “I like apples.” In short order Apple’s iTunes division set up its European home in Luxembourg and was then joined by Microsoft, Cisco and eBay, a veritable tech surge. It was hailed as another triumph of economic reinvention for one of Europe’s smallest sovereign enclaves. Yet a decade on, the strategy has put its mastermind under political fire just as Mr Juncker reaches his career zenith as European Commission president. The EU is investigating whether sweetheart tax deals that Luxembourg granted to two foreign companies — Amazon and Fiat — were too sweet. Thousands of pages of leaked Luxembourg tax rulings have revealed how hundreds of others that moved to the Grand Duchy also managed to pay negligible taxes. Even some allies fear Mr Juncker’s role in his nation’s unlikely rise to the top of Europe’s per capita rich list — a 40-year journey from clappedout steel producer to booming financial centre, satellite pioneer and ecommerce hub — could prove his undoing. During the boom, Mr Juncker was never shy to claim credit. “I have personally lobbied for these companies to choose Luxembourg as a European base and I should neither feel ashamed, nor need to justify it,” he told one Revue interviewer in 2004. To Le Quotidien in the same year he boasted: “We attracted AOL, Amazon, Microsoft. Some think that it fell in our laps. There were 200 hours of negotiations with AOL. You must have a taste for hard work and get stuck in.” Those meeting him remember an accommodating, humorous and accessible leader. “We met [Juncker] once or twice,” Robert Comfort, Amazon’s head of tax, recalled in a candid interview with d’Lëtzebuerger Land detailing the 2003 talks that brought the online retailer to Luxembourg . “[Juncker’s] message was: ‘If you encounter a problem that you think you cannot solve, come see me. I’ll try to help you.’” A year before retiring from Amazon in 2012, Mr Comfort was made Luxembourg’s honorary consul to the US state of Washington. He did not respond to Financial Times requests to comment. For his part, Mr Juncker remains defiant and unapologetic. Speaking to the FT last month, he said accusations of impropriety were “disgusting questions”. So far no wrongdoing has been proved. Luxembourg was far from alone in courting multinationals with an appealing tax regime, and it has never been short of envious rivals, including Ireland, the Netherlands, Belgium, Britain, Switzerland and even Delaware in the US. “They are all criminals if we are criminals,” Mr Juncker once claimed. But on some fronts Luxembourg stands out. In 2000 US companies — excluding banks — reported $3.4bn in profits from their Luxembourg-based d operations, according to US commercee department data. Ten years later, thatt

Rulings How sweetheart deals made charms irresistible Luxembourg’s controversial system of “rulings” — letters from the tax authority confirming how companies would be taxed — dates back to the early 1990s, soon after Jean-Claude Juncker became finance minister. It was sparked by efforts from the big accountancy and law firms to devise a low-tax structure using a new type of holding company, known by its French acronym Soparfi, to reap the benefits of international tax treaties. The new structures were stuffed with large amounts of “hybrid” debt — considered debt in Luxembourg but equity elsewhere. Rulings were needed to give companies the confidence that the arrangement was acceptable to tax inspectors. The Grand Duchy was inspired by the Netherlands, renowned as a holding company magnet. As well as rulings, Luxembourg copied a Dutch capital gains tax exemption. That enhanced the Grand Duchy’s charms, including a tax break on interest introduced to capture the Eurobond market in the 1970s. Luxembourg was well placed for the ensuing explosion in foreign tax planning by US multinationals at the close of the millennium. Such tax planning became even easier in 2002 when Mr Juncker, as prime minister, extended corporate tax breaks to partnerships. That opened up new ways for companies to play one country off another and pay negligible tax. The result was a proliferation of sprawling structures, potentially across several business-friendly countries.

Microsoft’s headquarters in Luxembourg. Below, hereditary Grand Duke Guillaume, fifth left, and then economy minister Jeannot Krecké, seventh left, meet eBay tax officials at its California head office in 2006 Emmanuel Dunand/AFP

number had hit $94.1bn. Behind the numbers was Mr Juncker’s obsession with economic diversification. In the 1970s, the Grand Duchy pivoted from steel to finance through shrewd tax breaks and nippy regulatory footwork. Since the 1930s Luxembourg has cannily deployed its rights to radio frequency and later satellites to host Europe’s broadcasters, from RTL to Radio Luxembourg. For Mr Juncker the dangers of overreliance were personal and visceral: as a young minister he forced his steelworker father into early retirement as Luxembourg’s industry crumbled. To him, the internet age posed both threat and opp opportunity. y “I said to myself. . . we

cannot replace one dependence [steel] with another [finance],” he told the FT. “We tried with all means — but not with illegal means — to diversify our economy against the strong opposition of some of our neighbouring countries.” Jean-Paul Zens, Luxembourg’s top tech sector official for almost two decades, says it was a “happy coincidence” that new EU VAT rules emerged by 2003, allowing exemptions for electronic services. It caught the eye of Rick Minor, an AOL executive, who established the template for using Luxembourg as a European ecommerce hub. What followed was “possibly the biggest influx of Americans to Luxembourg since the second world war”, he said. Once the potential became clear, LuxO emb mbourg hit the road. While Mr Juncker meet the likes of Amazon’s Jeff Bezos at hom me, his ministers were busy prospeccting the US west coast, visiting Ap pple, Yahoo, eBay and Microsoft, am mong others. From 2003 to 2006 their traade missions were annual or twice yeaarly, sometimes with royalty in tow. One picture shows a Luxembourg O miinister and the hereditary Grand Duke Gu uillaume at eBay’s head office. Smiling beeside the heir to the throne: eBay’s ch hief finance officer, head of tax, viceprresident for tax, and a relatively lowly diirector for indirect taxation. While many countries deploy royalty to drum m up p trade, they rarely rub shoulders with a company’s tax practice.

“If you are sitting in Silicon Valley or Seattle or Vancouver and not knowing a lot about Luxembourg, it is more difficult to make a decision about Luxembourg,” said Mr Zens, a regular on the US trips. The Grand Duchy had to do more to make an impact than rivals such as Ireland, which had cultural links to the US. Former ministers and ecommerce executives insist tax was just one of many factors. Talks were as much over regulation, logistics — even school places. Over lunch with Mr Krecké, eBay’s Meg Whitman said she ruled out Luxembourg because of some weaknesses in IT infrastructure — prompting an immediate promise of investment.

US companies in Luxembourg Net income ($bn)

Employees

100

15000

80 10000

60 40

5000

20 0

0 1995 2000

05

10

Source: US Department of Commerce

“We are not tax consultants. We are focused on industry,” said Mr Krecké, who as economy minister led some US trade missions. Indeed, Luxembourg’s great strength was its agility. Mr Juncker oversaw concerted efforts to attract tech players — from changing retail laws, to improving internet connections, to near constant refinements to the tax code, which Luxembourg would, on request, readily interpret for multinationals. “As we say in Luxembourg: ‘Schnellboot gegen Tank (the speedboat takes on the tank)’,” Mr Juncker told the FT as he prepared for the tech boom. In regulatory terms, Luxembourg was a small village where the door of officialdom was always open. Facing an external regulatory assault, Luxembourg is shoring up its defences. Advance tax rulings — so vital to multinationals worried about potential liabilities — are being overhauled to make them harder to secure and more legally sound. Mr Juncker is urging the Grand Duchy to begin sharing them with other governments automatically. “The flexibility and case-by-case discussions with the tax administration we have known in the past are now finished,” Olivier Van Ermengem of Linklaters told clients. “Rulings are now granted on the basis of analysis of the law and the facts . . . We will have to get used to the fact that when you apply for a ruling, it may end up on the desk of a tax inspector anywhere in the world.”

Structural flaws

Labour relations

IMF urges South Africa to push for growth

Germany clamps down on niche trade unions

ANDREW ENGLAND — JOHANNESBURG

South Africa urgently needs to tackle structural problems that are stymieing growth, the International Monetary Fund has warned. The comments came as the rand hit sixyear lows against the dollar and as the country endured its worst power cuts since 2008. Speaking as the IMF released a report on Africa’s most developed economy yesterday, Laura Papi, the fund’s mission chief there, said that while external demand and softer commodity prices were contributing to the weak economic performance, domestic structural constraints had “become more binding”. South Africa’s problems include prolonged wage strikes, transport bottlenecks and labour market issues, coupled with the need to improve education and training. “In terms of policy, our main message is that addressing the structural constraints is more urgent than ever to increase growth, create jobs, and also to increase exports and reduce the current account deficit,” Ms Papi said. The IMF has revised downwards its estimate for the country’s growth to

2.25-2.5 per cent, below the 3.5-4 per cent it estimated in the early 2000s. South Africa is one of the most liquid and traded emerging markets, but it is vulnerable to global financial shocks and was lumped with the “fragile five” emerging markets last year. It is exposed to Europe’s woes via manufacturing exports, and to China’s slowdown through commodities prices. Ms Papi said the subdued potential growth meant that the high unemploy-

1.4

% Growth forecast for this year, the lowest since 2009 recession

25

% Unemployment rate, which has long remained around this level

ment blighting South Africa would remain, as would the government’s battle to narrow high fiscal and current account deficits. The IMF forecasts growth of 1.4 per cent this year — which would be the country’s lowest level since a 2009 recession — and 2.1 per cent in 2015, if labour relations improve. The economy was battered this year by an unprecedented five-month strike in the plati-

num sector, a key source of export earnings. The South African government is struggling with unemployment that has remained stubbornly around 25 per cent; a fiscal deficit of 4.1 per cent of gross domestic product; and a current account deficit of 6 per cent of GDP. In October, Nhlanhla Nene, finance minister, pledged to curtail government spending, saying fiscal consolidation could “no longer be postponed”. The government is implementing a multibillion-dollar infrastructure plan in a bid to boost growth and has adopted a 20-year National Development Plan as the core of its economic policy. But the power shortages are set to last into next year and beyond, while businesses, which are suffering from fragile confidence, complain of rising costs, falling productivity and more labour unrest. Ms Papi said the electricity problems were having an increasing impact on growth and exports. State-owned utility Eskom is building two multibillion-dollar coal plants to add supply, but their completion has been delayed by more than two years — 12 months of which the company blames on strikes — and they have run far over budget.

JEEVAN VASAGAR — BERLIN

Angela Merkel’s government has approved draft legislation that curbs the capacity of small but influential unions to bring areas of the German economy to a halt. In a country where economic success has been built on pay restraint and consensual labour relations, the clampdown on union power follows unpopular strikes that crippled the transport network. The draft law approved by Ms Merkel’s cabinet yesterday allows companies to confine wage negotiations to the union with the biggest group of employees. The courts would be able to rule any subsequent strike by a smaller union without bargaining power to be illegal, limiting the potential for industrial action. Ingo Kramer, president of the BDA, the German employers’ association, said: “The law will stabilise collective bargaining. Employers and employees have to be able to work together on a reliable basis.” The consensus between employers and workers cannot be “torpedoed by special interests”, Mr Kramer added.

Unions have played an influential role in Germany for years, with seats on supervisory boards of listed companies and near-universal membership in sectors such as the car industry. But after a court judgment in 2010 unions occupying specialist niches, such as pilots or doctors, were able to negotiate outside industry-wide agreements. The result has been a number of high-profile disputes in which niche Lufthansa pilots have gone on strike nine times this year, costing the airline more than €170m

unions have crippled some businesses. Lufthansa pilots have gone on strike nine times this year in walkouts that cost the airline more than €170m. The union is fighting to protect early retirement and is concerned about a broader erosion of employee privileges as Lufthansa launches a new budget service, Eurowings. The GDL train drivers’ union disrupted celebrations commemorating the fall of the Berlin Wall with a strike

over pay in October this year. Both the GDL and rival union EVG claim to be the train drivers’ main representative. While union representation declined from about quarter of the German workforce in 2000 to just under 18 per cent last year, according to OECD figures, labour unrest has grown. The number of companies in Germany affected by strikes rose from 367 in 2012 to 1,384 last year, the highest figure in two decades, according to the Federal Labour Agency. Nearly 150,000 working days were lost to strikes last year. The bill was drafted by Andrea Nahles, the Social Democrat labour minister in the coalition government, a trade union member. Ms Nahles said the law on collective bargaining was intended to promote cooperation. “Collective agreements are intended to protect all groups of workers alike. It shouldn’t be the case that success in bargaining is proportionate to your power to strike,” she said. The pilots’ union Cockpit described the law as a “violation of the constitution”. Ilja Schulz, the union’s president, said he expected the law would be overturned through an appeal to Germany’s constitutional court.

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FINANCIAL TIMES

Friday 12 December 2014

INTERNATIONAL Federal law

Transparency

US companies exposed by migration policy

Carney set to discard Bank of England secrecy

Move to regularise illegal workers puts businesses at risk of prosecution BARNEY JOPSON — WASHINGTON

Businesses that employ low-skilled immigrants fear President Barack Obama’s immigration policy will expose them to new legal risks by encouraging employees to confess they are working on false documents. Mr Obama is using his executive powers to shield more than 4m unauthorised immigrants from deportation and offer them work permits, a move that highlights the US’s reliance on a black market labour force that accounts for 5 per cent of all workers. The president’s action marks the biggest change to immigration policy in decades and has thrown up legal uncertainties for employers — and immigrants — as unprecedented numbers of people move from illegal to legal status.

Businesses are worried that if a worker tells them they are applying for the president’s programme — and thereby admits he or she is working illegally — they will immediately be breaking a federal law against “knowingly” employing an unauthorised worker. Mr Obama’s executive action has also sparked fury among Republicans. They are plotting ways to block it in the early months of next year when they take control of both chambers of Congress. The corporate concerns are acute in construction, agriculture, food, cleaning and hospitality where low-skilled Hispanic immigrants make up a large proportion of the workforce, said Tamar Jacoby, president of ImmigrationWorks USA, an alliance of small businesses. “What’s likely to happen in many businesses,” she said, “is the man who’s worked for you for 10 years who you think is called Juan is going to come and say: ‘I have the keys to the back office and the combination to the safe and I’m one of your most trusted employers, but

my name’s not Juan, it’s Jose. That social security number I gave you is fake and I’ve been lying to you.’” US Immigration and Customs Enforcement conducts audits of workplaces and penalises or even prosecutes business owners and managers found to

‘It’s a “don’t ask, don’t tell” policy. We’re just taking the documents on face value’ be deliberately employing illegal workers. ICE says many immigrants rely on criminal organisations to obtain authentic-looking documents. The law requires businesses to verify staff have the right to work in the US, and Ms Jacoby said most employers “hope and believe” that they are. But fake, borrowed or stolen documents can get people through a process that consists of visual checks of photo

IDs and social security numbers. An electronic system called E-Verify exists but its use is not compulsory. Some employers are reluctant to pose searching questions over documents due to fear of being accused of discrimination. David Fitzpatrick of Labor Law Monitoring, who inspects clothing factories for big outsourcers in Los Angeles, said: “To use a common phrase, it’s a ‘don’t ask, don’t tell’ policy. We’re just taking the documents on face value.” The Pew Research Center says the total size of the unauthorised labour force is 8.1m and 69 per cent of the 4mplus people eligible for work permits under the programme already have jobs. The government will begin accepting applications from them next year. Joe Trauger, vice-president of human resources policy at the National Association of Manufacturers, said: “What do you do when an employee says ‘I need to give you my new legitimate tax ID because what I’ve had is a fake?’ That’s a big problem . . . There’s got to be a proc-

ess or some sort of safe harbour for businesses in that instance.” He said the process would cause problems for companies with “honesty policies” that say employees should be disciplined or fired if they have lied. He also noted the executive action could be reversed by a future president, rendering millions of workers illegal again. The biggest group eligible for the president’s plan are parents of US citizens and legal permanent residents, or green card holders. The administration has not yet issued guidance for employers, but sought to reassure them in 2012 when Mr Obama used his powers to stop the deportation of young people brought to the US illegally as children. It said that if businesses gave workers documentation to verify their presence in the US — and in doing so acknowledged they had been working illegally — that would not be shared with ICE for enforcement purposes “unless there is evidence of egregious violations of criminal statutes or widespread abuses”.

Japan. Economic policy

Weak yen divisive for Abe ahead of election PM hails boon to companies but wider impact of fall hits households and small groups KANA INAGAKI — TOKYO

In an unusual leak during a stump speech, Japanese Prime Minister Shinzo Abe recently revealed Apple’s plan to build its first technology centre in the country, touting it as a result of his weaker yen policy. Apple followed with a timely statement saying the facility in Japan would create “dozens of new jobs”. Days ahead of Sunday’s lower house election, Mr Abe’s message could not be simpler. The cheaper yen, the result of his economic policies known as Abenomics, is good for Japan. The evidence is growing, Mr Abe says, that the yen’s fall — to a seven-year low against the dollar to above Y121 — is bringing production back home and creating jobs. Toshiba, for example, plans to invest more than Y300bn ($2.5bn) in Japan, while Canon is looking to raise its domestic production ratio to 50 per cent from 43 per cent last year. Nissan has decided to manufacture engines in Japan instead of moving to the US, preserving almost 600 jobs, according to Mr Abe. “Even foreign companies are now starting to invest in Japan,” he said on Tuesday as he disclosed Apple’s plans. “A big change is happening.” Looking more closely, though, expanded domestic spending is not always linked to more jobs. Canon has for years aimed to repatriate manufacturing by saving labour costs through automation and the use of robots. The company says it has no plans to change employment levels. Toshiba is also increasing investment at the Yokkaichi memory chip plant in central Japan, but semiconductor facilities are largely automated and any employment impact is likely to be minimal. Nissan, meanwhile, says it has no plans to move its engine production to the US with or without the yen’s fall. Despite the absence of powerful opposition parties, the weak yen debate has been divisive for Mr Abe, pitting the big companies enriched by the currency benefits against smaller groups

A woman walks past election posters in Tokyo yesterday. Some voters have been left struggling from the rising prices of commonly used imported goods Thomas Peter/Reuters

and households left struggling from rising prices of imported items ranging from toilet tissues and milk to beef bowls. Mizuho Bank estimates that a Y10 fall against the dollar boosts the operating profit of listed companies by roughly Y1.7tn while it shaves about Y800bn from the operating profits of privately held businesses that mostly do not export their products. Taro Aso, finance minister, poured more fuel on the fire after reportedly telling voters that companies not profiting from the weaker yen were “either very unlucky or have incompetent managers”. “I’m very upset with Mr Aso,” says Koichi Fujii, chief executive of Sanmaruko Foods, which makes frozen potato croquettes and spring rolls in Hokkaido, northern Japan. “We’re try-

ing so hard to cope with the weaker yen, but he doesn’t seem to get it.” According to Mr Fujii, the costs of materials including beef and flour have risen 5-8 per cent over the past year, while electricity prices have increased 30 per cent and transportation costs 10 per cent. Sanmaruko, a 35-year-old company with Y8.8bn in annual revenue and 500 employees, has cut costs and raised product prices to offset those costs. The company is making some profit, but not enough considering an 11 per cent rise in sales from April to November, Mr Fujii adds. The ruling Liberal Democratic party has promised economic packages to support smaller and medium-sized enterprises hurt by the weaker yen. But analysts say government aid should be aimed at making companies more com-

Looking more closely, expanded domestic spending is not always linked to more jobs

petitive overseas. Sanmaruko, for example, only exports 0.4 per cent of its products. The company wants to raise that ratio to 10 per cent, but with factories only located in Japan, Mr Fujii says the transport costs are too expensive. “It’s just a dream for now,” he says. For Mr Abe, analysts say one game changer that could actually spur more investment at home while mitigating the negative currency impact is cheaper oil, with the price of internationally traded crude falling below $65 for the first time in more than five years. “The speed of the decline in oil prices has been faster than the yen’s fall,” says Kentaro Arita, manager at Mizuho Bank in charge of industry research. “If this trend continues, the merits of cheaper oil will be bigger than the negative impact from the weaker yen.” Male bonding page 11

CHRIS GILES — ECONOMICS EDITOR

Mark Carney, governor of the Bank of England, yesterday swept aside much of the secrecy that traditionally surrounds its deliberations, promising to publish voting details and minutes of interest rate decisions at the same time they are announced. The BoE also wants to hold fewer monetary policy meetings each year and, after reviewing its practice of deleting recordings, has decided it will publish transcripts of monetary policy meetings after eight years. The changes are part of reforms to bolster the transparency of the BoE so that parliament and the public are better able to hold it to account for the many powers it has acquired. The BoE’s communications on monetary policy have veered dramatically between hawkish messages, such as at the Mansion House speech in June, and dovish noises, such as in the August inflation report. The simultaneous release of decisions, minutes and votes will end the drip-feeding of sometimes contradictory information to the public and markets. Recognising some of the confusions the BoE has caused this year, Mr Carney said the procedures will “make policy signals as clear as possible”. From August 2015, the BoE’s Monetary Policy Committee will publish the minutes of its meeting and the quarterly Inflation Report at the same time as it announces its decision on interest rates. Mr Carney said the reforms were “the most significant set of changes to how we present and explain our interest rate decisions since the Monetary Policy Committee was formed in 1997 . . . These changes will enhance our transparency and make us more accountable to the British people.” The measures were welcomed by Andrew Tyrie, chairman of parliament’s Treasury committee, who felt Mr Carney went further than expected. “The bank will have an organisational structure more recognisably that of a modern institution, in keeping with its greatly expanded powers and responsibilities. It will also have a body — a board in all but name — unambiguously in charge of managing its business.” The BoE intends to follow the lead of the US Federal Reserve, the European Central Bank and the Bank of Canada — Mr Carney’s last employer — in having just eight meetings a year. Of the monthly MPC meetings at the BoE, Mr Carney said: “I think we meet too often — that is the honest answer.” The BoE proposes to merge the MPC and four meetings of the Financial Policy Committee from 2016, relieving some of the burden of the monthly decision-making process. George Osborne, chancellor, said he would consider amending the law after the general election to permit the changes. He described the proposals as “an important improvement to the policy making process”. The governor said that moving to eight MPC meetings a year would not prevent the BoE acting speedily in an emergency. Just like at present, Mr Carney said that if necessary, “we could meet this afternoon”. The review was conducted by Kevin Warsh, a former Fed governor. Other changes include publishing the minutes of meetings of the BoE court, its governing body, between 1914 and 1987, to align practices with the rest of Whitehall and publishing court minutes between 2007 and 2009, at the request of the Treasury committee, a period in which the BoE has been accused of acting slowly as the financial crisis developed.

Humanitarian crisis

Syrian refugees resigned to long stay in Turkish camps while Ankara counts the rising cost ERIKA SOLOMON — NIZIP DAN DOMBEY — ISTANBUL

Leafy vines and potted flowers line the small plastic trailer where Abdullah Jawish has lived for two years. Planted as a symbol of optimism, they belie his despair that he will ever leave his refugee camp and return home “Back home I was a farmer,” he says, smiling. “I try to give my family just a taste of that, to remember.” When they first arrived, the refugees thought their life outside Syria would be temporary. Now the 5,000 living in rows of identical white containers in “Nizip II”, just outside the Turkish city of Nizip, are braced for a long haul. After more than three years of bloodshed that has killed more than 200,000 people and forced 9m to flee their homes, few refugees believe they can

return soon. Many fear they never will. “I wonder if we will end up like the Palestinians — a people without a homeland, for decades,” says Mona, a young mother of four. She fled her home city of Aleppo almost three years ago. The sense of permanence is not just a worry for the 1.6m refugees in Turkey. Ankara is also growing alarmed by the economic and the social costs of its refugee burden. Funds are drying up. Turkey’s humanitarian spending has increased more than fivefold since the uprising against Syria’s President Bashar al-Assad began. According to the Organisation for Economic Co-operation and Development, Syria now takes up more than 90 per cent of Turkey’s humanitarian assistance funds. While Turkey’s $820bn economy is burdened by the $1.5bn it spends each year on the refugees, it is still able to pro-

vide for the 220,000 refugees in the camps which are full to capacity. A deeper worry for Ankara is the rising frustration of the estimated 1.4m refugees existing outside the camps. “Either you give food and shelter to these people, or in their anger they may be much more liable to be recruited by extremists and criminals,” says Atilla Yesilada at GlobalSource Partners. Outside the camps, refugees scrape together money to rent garages or unfinished buildings. Child labour and prostitution are growing among refugees not legally allowed to work in Turkey. Many have already turned to crime, like the smuggling that has helped jihadi militants to flow into Syria and which authorities are desperate to stop. Turkey says the world is not doing enough to ease a crisis that has already cost it more than $4.5bn.

“How has the world helped us? They have provided us with $200m. Meanwhile, Europe has only 130,000 refugees from Syria at the moment,” says Recep Tayyip Erdogan, Turkey’s president. “Why won’t European nations open up their borders to refugees?”

A young girl plays outside a tent in Nizip refugee camp

This week the EU said it was finalising €70m in further aid, but a nine-day interruption in World Food Programme assistance for Syrian refugees in the region highlighted the scarcity of available funds. Amnesty International says the international community has “abandoned” refugees. But it also says Turkey has not done enough in requesting support. Privately, aid workers say Ankara does not make it easy to provide aid, arguing that the assistance spending is insufficiently transparent and that it is difficult for foreign organisations to register and operate in Turkey. Turkish officials in border towns like Reyhanli, where the population has doubled with the arrival of Syrian refugees, say they are struggling to maintain services and ease tensions between refugees and locals.

Turkey still has to grapple with huge inflows every time a new military campaign erupts near its borders. In the past two months it took in another 200,000 fleeing an offensive by jihadi militants on the border town of Kobani. It is braced for another huge influx should the Syrian government encircle Aleppo. In figures that outstrip other officials’ predictions, Mevlut Cavusoglu, the foreign minister, has even warned of 2m-3m more refugees if the city falls. Meanwhile, container camps like Nizip are turning into tiny asphalt villages — albeit ones with guard towers and metal detectors for those passing through their chain-linked fences. Cracking open her container door, Mona ushers in her children, nieces and nephews for dinner. “Our container stays the same size,” she sighs. “But the number of people in it keeps growing.”

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INTERNATIONAL FT seasonal appeal

Charity steps up assistance to South Sudan’s 2m displaced How you can help

International Rescue Committee has saved tens of thousands of lives KATRINA MANSON — JUBA

Nomi Ayour Malek had travelled to South Sudan’s capital, Juba, to buy clothes as Christmas presents for her children when fighting broke out last year. As the violence spread, she became trapped by the sudden onset of civil war in the world’s newest nation. As a member of the country’s dominant Dinka ethnic group, she did not dare risk travelling back to her home in Jonglei province, north of Juba, where rebels from the Nuer ethnic community repeatedly attacked and took over the state capital, Bor. “I don’t care for these two tribes,” says Ms Malek, who is still in Juba, living in a camp for 2,600 displaced people, set up in the grounds of a school. The shelters consist of tarpaulin stretched over sticks. Women make up the majority of the camp’s inhabitants; they spend their days washing clothes in plastic vats, cooking, selling charcoal or playing cards in the shade of trees. “We are all the children of South Sudan; let them come together and settle their differences as a family,” says Ms Ayour, mindful that South Sudan spent decades fighting for independence from the Khartoum government, which it won only three years ago. “If there’s peace, I’ll go back [home].” The extent and severity of the fighting, however, as well as fear of ethnic killings, have made it unlikely that Ms Ayour will be able to return home anytime soon. She is just one of nearly 2m people, some 17 per cent of South Sudan’s population, who have been displaced by the violence. While the civil war was triggered by a political fallout between President Salva Kiir, a Dinka, and his sacked deputy, Riek Machar, a Nuer, it has created a humanitarian catastrophe on the ground. Protracted peace talks have so far failed to deliver a lasting deal and heavy fighting could resume with the onset of the dry season early next year. The International Rescue Committee, the humanitarian organisation partnering the Financial Times in this year’s seasonal appeal, has been at the forefront of efforts to bring help to those in South Sudan who need it most. It has got supplies through to tens of thousands of

Refugees play cards in the Juba camp where Nomi Ayour Malek, below, now lives with 2,600 others people who sought refuge by wading into swamplands with only water lilies for food; and monitors shelter and medical care for the thousands of vulnerable people in camps such as the one where Ms Ayour lives. “IRC was one of the earliest, fastest and biggest organisations to reach deep-field locations where need was the highest; there is no question they saved tens of thousands of lives,” says Toby Lanzer, UN chief humanitarian co-ordinator in South Sudan. “At Christmas last year I called [IRC president] David Miliband and said: ‘I need you and I need you here now, big and fast’,” recalls Mr Lanzer, who says IRC is one of the top 20 most effective organisations among 200 currently working in the country. Although it has been active in South Sudan for 25 years, IRC tripled in size this year in its effort to respond to the war. The charity now has more than 1,000 local staff and a budget of $28m, up $10m on last year. In the

12 months since the civil war started, the IRChasreached900,000people. “I’m really proud of the fact that we’ve been able to scale up as much as we did,” says Wendy Taeuber, IRC’s country director for South Sudan. She says IRC reached people in difficult, remote areas by canoe, with many of its staff later emerging undernourished and skinny. Famine, she cautions, “is a much more real possibility in the coming months” because people have sold cows, lost their homesandharvestedonlyameagrecrop. IRC protection officers such as Paul, an ethnic Nuer who did not want to give his full name, search out vulnerable people who need extra assistance. He was recruited from a camp for displaced people at one of many UN bases where he, like 100,000 others, sought refuge. “I move house to house to find children who have no company, pregnant women, lactating mothers, old

Katrina Manson

people, the disabled — four of us make about 30 referrals a week,” he says. The ethnic dimension to the war is a constant source of tension. An IRC report published in November says that both government and opposition forces “have committed extraordinary abuses of civilians, often deliberately targeted along ethnic lines, including mass killings, disappearances, torture and gender-based violence such as rape”. Aid workers in South Sudan were the third most attacked in the world this year after Afghanistan and Syria, with 35 killed. In April, two IRC workers were killed at a health clinic in a UN base. “We hope that donors will continue to support the response,” says Ms Taeuber. “As the conflict continues there’s distrust on all sides. We have to serve people in need wherever they are found.” Appeal online For all stories from the FT’s seasonal appeal and to donate ft.com/seasonalappeal

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FT BIG READ

Person of the Year Tim Cook Reuters/Lucy Nicholson

Buybacks, hacks and big sales — a year at Apple January Apple’s shares fall 8 per cent after iPhone sales miss forecasts. March Luca Maestri becomes Apple’s chief financial officer, paving the way for more share buybacks. May Apple buys Beats Electronics for $3bn in its largest ever acquisition

Plenty to smile about

August Photographs of celebrities including Jennifer Lawrence, apparently hacked from their iCloud accounts, are posted on the internet. September Cook unveils Apple Watch and Apple Pay. The European Commission publishes the initial findings of its inquiry into Apple’s Irish tax deal. October A strong start for the iPhone 6 sees Apple beat Wall Street forecasts for the third earnings in a row this year Cook talks publicly about his sexuality for the first time. November Apple’s market capitalisation hits $700bn in nominal terms.

The Apple chief has faced criticism of his stewardship but in 2014 he turned things round and stamped his identity on a business that at one stage was valued this year at $700bn. By Tim Bradshaw and Richard Waters

M

ore than an hour into Apple’s annual shareholder meeting in February, Tim Cook had patiently fielded questions ranging from its plans for the television market to what he thought of Google Glass. But when one audience member tried to push Apple’s chief executive on the profitability of Apple’s various environmental initiatives, such as its solar-powered data centre, Mr Cook snapped. “We do things for other reasons than a profit motive, we do things because they are right and just,” Mr Cook growled. Whether in human rights, renewable energy or accessibility for people with special needs, “I don’t think about the bloody ROI,” Mr Cook said, in the same stern, uncompromising tone that Apple employees hope they never have to hear. “Just to be very straightforward with you, if that’s a hard line for you . . . then you should get out of the stock.” Many investors, it turns out, are siding with Mr Cook. After a tumultuous 2013, the share price has increased by around 50 per cent since that shareholder meeting, at one point taking its market capitalisation above $700bn.

the Year, but Mr Cook’s brave exposition of his values also sets him apart. This was never more powerful than when he talked publicly for the first time about his sexuality. “If hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it’s worth the trade-off with my own privacy,” he wrote in Bloomberg Businessweek in October. It was a rare glimpse into his closely guarded personal life that also put at risk Apple’s brand in less tolerant parts of the world. Mr Cook was driven to take a stand by his experiences growing up in Alabama, where he has talked of seeing discrimination that “literally would make me sick”.

Cook on coming out ‘If hearing that the CEO of Apple is gay can help someone . . . then it’s worth the trade-off with my own privacy’

Changing minds In the three years after the death of Steve Jobs, Mr Cook, 54, has held his nerve through attacks from activist investors and a loss of faith among some that Apple could succeed without its late founder. This year has seen Apple’s chief step out of the shadows of his predecessor and imprint the company with his own set of values and priorities: bringing in fresh blood, changing how it manages its cash pile, opening Apple up to greater collaboration and focusing more on social issues. As the new iPhone continues to smash its own launch records, Mr Cook has unveiled products such as Apple Watch and Apple Pay that take the iPhone maker into the realms of fashion and finance, recapturing a spirit of innovation that many feared had died with Jobs. In the process, Apple’s valuation this year has grown by almost as much as Google’s entire market capitalisation. But the change in Wall Street’s — and Silicon Valley’s — appreciation of Mr Cook is down to more than just the 70m iPhones Apple is expected to sell this quarter or the $42bn in sales generated in the previous. Financial success and dazzling new technology alone might have been enough to earn Apple’s steely chief executive the FT’s vote as the 2014 Person of

Online Listen to Tim Bradshaw discuss the FT’s Person of the Year at ft.com/podcasts

“From one son of the South and sports fanatic to another, my hat’s off to you,” tweeted Bill Clinton, the former US president, in response to the article. His eloquent defence of equality came after a year of faltering progress on gay marriage in the US and as arguments rage about the lack of diversity among the people running the Silicon Valley companies, including Apple, who shape so much of our culture. Mr Cook has added three women to what was previously a white-maledominated executive team and changed Apple’s board charter to commit to seeking out candidates from minorities when appointing directors. “People claim he has a cool exterior but he’s a very passionate guy and he stands up for what he believes in,” says Bob Iger, Walt Disney chief executive and Apple board member since 2011. “That is in both his personal life and at Apple.” As well as diversity, Mr Cook has championed sustainability and supplychain transparency, including a commitment to reducing Apple’s use of conflict minerals. While hyper-efficient under Mr Cook’s management before he became chief executive, Apple’s supply chain has not always been something to boast about, with recurring complaints about working conditions.

But Anne Simpson, senior portfolio manager and director of global governance at the US pension fund Calpers, a prominent Apple shareholder, believes his ethical stance is more than just posturing. “He has a charming disregard for showmanship,” she says. “Tim Cook applies this Apple notion of elegance and excellence to these new arenas.”

Show must go on Mr Cook’s lack of showmanship has not always been seen as an asset. Critics have been eager to point out that he is not so closely involved in new product development as his predecessor, and fails to elicit the same excitement when he takes to the stage to introduce them. But Mr Cook is aware of his shortcomings and has drawn on the worlds of fitness and fashion to assemble a new team of talents, including Angela Ahrendts, formerly of Burberry, and industrial designer Marc Newson. “I thought it would be impossible to replace Steve, and to some extent that’s true,” says Professor Michael Cusumano of MIT’s Sloan School of Management. “But internally the spirit is still alive and the company is organising around a less confrontational culture. We have to give Tim credit for that.” Bringing harmony to Apple’s internal fiefdoms has not been easy. There is still “huge tension” inside Apple, according to one person who has worked with the company for many years. “That tension is something he uses to run the company but it can be dangerous.” When things do go wrong, Mr Cook takes swift and merciless action. In late 2012, after the premature launch of Apple’s flawed Maps app, he dismissed Scott Forstall, who led the creation of iOS and was a close ally of Jobs, and John Browett, the former Dixons chief who had led Apple retail for less than a year. The actions sent a message that Mr Cook will not tolerate underperformance or internal politics. At that time, the chief executive was also under pressure, given Apple’s lack of clear product direction beyond milking the iPhone. Sensing blood, activist investors began to circle the company; first David Einhorn, then Carl Icahn, have lobbied for changes to how Apple is run and manages its finances. Mr Icahn has pushed for Apple to raise huge debt to return up to $150bn to shareholders and urged it to release more products, including a television set. With a growing need for someone to block and tackle Apple’s raiders and (given its tax investigation in Europe) regulators, Mr Cook’s focus on people, strategy and execution — rather than

products — finally started to look like an advantage. “He is very, very good at not allowing that pressure to in any way disrupt what Apple is trying to achieve,” says Mr Iger. “Clearly there were issues that were on his mind but Tim made sure they were never on the minds of the people who do what Apple does best.” Mr Cook’s decision to expand its cash return programme of dividends and share buybacks helped to diffuse the situation with the activists, returning $94bn to date. In the end, he stared down the challenge just long enough for the next wave of iPhone growth to hit and new products to emerge from Sir Jonathan Ive’s workshop. “I don’t think there are any companies that have survived big assaults from two of the biggest beasts in the hedge fund jungle,” says Ms Simpson of Calpers. “He is cool, calm and collected — the corporate exemplar of ‘Keep calm and carry on’.” That calm can sometimes be taken for a lack of the urgency that is vital in the fast-moving tech industry. Many were disappointed that Apple Watch was not made available to buy this year. But analysts say Apple’s approach of waiting until it has perfected a product usually leads to stronger long-term performance. Samsung, whose smartphone sales have suffered this year, is on its sixth-generation smartwatch, but has still not found a real hit. With the momentum now back behind the iPhone and anticipation growing for the Watch, Mr Cook seems to have won back the confidence of Apple employees, something that analysts say was obvious in his demeanour at this year’s product launches. “He’s had more of a sense of swagger and confidence” in recent months, says Jan Dawson of Jackdaw Research. At its Worldwide Developer Conference in June, Mr Cook was mobbed by app makers who asked him to pose for selfies. By October’s iPad launch, he was even cracking jokes at his own expense. Clad in his habitual but unglamorous uniform of black untucked shirt and jeans, he said that Apple Watch had

Apple after Steve Jobs ‘The company is organising around a less confrontational culture. We have to give Tim credit for that’

Cook on his image The Apple Watch was well received by ‘people who know a lot about fashion and style — even more than I do’ been well received by “people who know a lot about fashion and style — even more than I do”, pointing a knowing finger at the chuckling audience. “He’s informal, candid and approachable,” says Ginni Rometty, chief executive of IBM, who praises him as “very authentic. It’s the hallmark of a modern CEO. What you see is what you get.”

Opening up A partnership with IBM to sell iPads and iPhones to big corporate customers is just one example of how Apple is looking beyond its own walls more under Mr Cook, something Jobs had resisted. Among dozens of small, technologyfocused acquisitions, the $3bn purchase of Beats Electronics, the celebrity-endorsed headphones and music streaming service, stands out as Apple’s largest ever deal. The acquisition still bemuses many Apple analysts, but in Jimmy Iovine and Dr Dre, Beats’ founders, Mr Cook has instantly regained credibility with the music industry after years of neglecting the iTunes download store. If Mr Cook is guilty of missing the rapid growth of subscription services such as Spotify, he has moved swiftly to compensate for it — though for a high price. Prof Cusumano sees all this as evidence that the company is opening up more, including in allowing developers to customise more of its iOS software. Mr Cook must balance that with the secrecy that surrounds its product development. Already, there are whispers on Apple’s campus about another secret project, on the scale of the iPhone or Watch, which is pulling in talent from across Cupertino. But whether another hit product can emerge to fend off questions about Apple’s life after Jobs, Mr Cook learnt long ago to be patient and trust his instincts, just as he did when he ignored the doubters to join the then-struggling company in 1998. “Even though I’m an engineer and an analytical person at heart, the most important decisions I’ve ever made had nothing to do with any of that,” he told an interviewer at Duke University, where he studied for an MBA, last year. “They were always based on intuition.”

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Letters

Email: [email protected] or Fax: +44 (0) 20 7873 5938 Include daytime telephone number and full address Corrections: [email protected]

Internationalisation of the renminbi: more hype than hope

FRIDAY 12 DECEMBER 2014

Spain’s flawed challenge to the mighty Google New copyright law signals determination to take on US search engine Google is in conflict with European governments and regulators on many fronts, most notably regarding its market power and its respect for personal privacy. But few issues are becoming as sensitive for the internet company as its disagreement with European publishers over issues of copyright. Infuriated by the loss of revenues that they say results from the republication of their material on the web, leading publishing companies across the EU have demanded the legal right to charge Google every time their content appears on the internet company’s news site. Now the Spanish government has obliged. Under a new law, which comes into effect at the start of next year, all online news aggregators will be required to pay Spanish publishers a fee for content that they link to. If they fail to pay the as yet unspecified sum, they will be fined up to $600,000. Google has already said that it will close its Spanish news service next week as a result of the legislation. And while it is by far the largest provider in Spain, it is not the only business to be affected. Infoaliment.com, a small Spanish aggregator, has also said it will shut down. Legislators and publishers across Europe have long expressed concern that Google’s pervasiveness means that existing copyright laws are not sufficiently strong to protect traditional media companies. In Europe, Google enjoys a market share of some 90 per cent of internet searches. While its news service links to publishers’ websites, the concern is that it is possible to convey the gist of many stories in a very few words, absolving the aggregator of the need to compensate the rights’ owner under existing copyright law. Nonetheless, Spain’s legislation, which comes into effect on January 1, looks draconian. Other EU states have

attempted to get to grips with the problem. This year, Germany passed new rules permitting publishers to charge sites such as Google whenever snippets of their articles are aggregated online. But that legislation allowed the publisher to decide whether or not to apply a charge. Most German companies abstained because they found the drop in traffic to be so steep once they were delisted that they were willing to allow Google to publish without having to pay. But Spain’s legislation does not leave this room for discretion. The mandated levy cannot be waived. It is not clear what this legislation is likely to achieve, other than to make clear Madrid’s dim view of Google. Denied the opportunity to showcase their content on the most widely used web search site, Spanish publishers will simply lose that advertising window. As the German example shows, they ultimately recognise the promotional value in being on an aggregator site. While Google will lose a feature from its Spanish service, it is not clear how it will be damaged by the move, since most other aggregators will also be knocked out. Google’s decision to shut down its Spanish news site will barely dent its European operations. But the company should not ignore the extent to which European governments are striving to pass laws designed to restrict its activities. The US internet company continues to take the view that its operations provide an unambiguous social and economic good. But it underestimates the extent to which governments and competitors in Europe regard the US company as a domineering presence and an economic threat. If Google fails to recognise this, it may face a more concerted attempt at the EU level to rein in its power.

Miliband tackles his deficit attention disorder Labour leader finally turns his mind to Britain’s borrowing problem Most conference speeches are entirely forgettable. In October, Ed Miliband managed to deliver one that was memorable only for what he forgot to say. Far from being an aberration, however, the failure of the Labour party leader to talk about the deficit reflected a settled policy of ignoring a problem to which he had no solution. This position has become increasingly untenable. Mr Miliband intends to lead Britain’s main opposition party into government next May, and sorely needs a credible fiscal strategy. Yesterday he finally gave the topic his attention, describing the outlines of a plan to bring balance to the UK public finances. Within the next parliament Labour would aim to deliver a surplus on the current budget, allowing borrowing only for capital investment. It plans for debt to start falling as a ratio of gross domestic product. Without ruling out tax rises, Ed Balls, shadow chancellor, has also warned his colleagues to expect cuts in departmental expenditure to achieve this goal. Labour’s decision to stake out a fiscal position is not only intended to reassure the bond markets. The aftermath of the government’s Autumn Statement has seen growing unease at the pace and scale of the public spending cuts pencilled in by George Osborne, chancellor. Mr Miliband’s speech is an attempt to make political capital out of this anxiety. His plans would allow Labour to support a state 2 or 3 percentage points of GDP larger than the one Mr Osborne envisages. There are still plenty of holes in Labour’s economic strategy. While blaming low wages for the high deficit, they have no policies fit to address this challenge. In fact, Mr Miliband’s punitive approach to business would make the problem worse by discouraging investment and enterprise. Many questions about spending remain

unanswered. Mr Miliband made little reference to the soaring welfare budget, nor hinted which departments would be in the line of fire. A proposal for higher property taxes to fund a £2.5bn increase in National Health Service spending would be swallowed up by inflation within a year. But the charge of vagueness could also be levelled at the Conservatives, whose plans require billions more in public spending cuts. In this regard, Labour is gambling that its strategy can score points for being both more realistic and humane. Yet these advantages are not won without cost. Under Mr Miliband, public debt would be significantly higher. It is currently expected to peak at above 80 per cent of GDP. Given a normal rate of economic growth, either of the parties’ plans would see that ratio come down — but the pace of reduction under the Conservatives would be twice as fast. By ignoring the fiscal problem for so long Labour has allowed trust in its economic competence to collapse and the coalition to define the terms of the debate. The Conservatives intend to exploit this by turning political attention from the deficit on to the question of how much public debt the UK can bear. Yet while debt ratios certainly need to come down, the Tories are yet to demonstrate why this has to proceed as quickly as their plans suggest, nor how it can be achieved without badly damaging public services. As a result, the space has finally opened up for a proper argument about fiscal policy, with clear blue water between the parties’ plans. Set against its former reticence, the outline that Labour sketched represents some sort of progress. On its own it will not be enough to recapture the confidence of the electorate. Over the next few months, Mr Miliband needs to be even more forthcoming.

Sir, In “Turning away from the dollar” (The Big Read, December 10), James Kynge and Josh Noble confirm what China’s leaders have been saying since the financial crisis in 2008, namely their disapproval of the US dollarbased global financial system. Nevertheless, each of the three changes cited as evidence that China is indeed turning away from the US dollar are more nuanced and questionable than they appear at first glance. It is true that China doesn’t like the continuous accrual of US Treasuries to its currency reserves, but for as long as it runs an external balance of payments surplus, it has no other choice. The external surplus has indeed fallen as a share of gross domestic product to around 2 per cent but we should not blindly extrapolate. As China rebalances its economy, and the investment share of GDP declines,

China’s external surplus is more likely to rise than fall. Twenty years from now, as China’s old age dependency rate soars, this may change, though in other mercantilist nations, such as Japan and Germany, it hasn’t. The investment rates have dropped, but the rise in aggregate savings has simply shifted from households to companies, and that is happening in China too. China’s sponsorship of three new development banks is an intriguing phenomenon, and suggests, as Mr Kynge and Mr Noble maintain, that the country is keen on promoting a global financial policy in which China’s capital outflows and the use of the renminbi become more important. But there has been a lot of grandstanding here. The New Development Bank will use US dollars. The Asia Infrastructure Investment Bank, which is half-owned by China,

Perception is heightened as President Xi tackles the corruption problem Sir, After recent reports referring to China slipping down Transparency International’s Corruption Perception Index (CPI), I would like to correct the misperception that this reflects negatively on its current anticorruption drive. On the contrary, by bringing to light past abuses, President Xi Jinping’s initiative has sharply raised awareness and public expression on this topic. It is precisely because China is tackling this problem (admittedly with uncertain determination or ultimate success) that measures like that of Transparency International show heightened perception of the problem. Indeed, this should be a goal for any effective deterrent to corrupt practices. From the observed movement of the CPI, one might argue that corruption was worse than expected in the past, but not that it is getting worse. David Roland-Holst Professor, Depts of Economics and Agricultural and Resource Economics, University of California, US

We simply don’t need so many humans Sir, Reforming immigration policies for Europe — and the other rich countries — may not even be needed if the technology gurus have it only half right (“Ageing Europe needs new blood to restore its economic health”, Global Insight,” December 8). The prospects for adopting labour-saving technologies in many of the labourintensive sectors in the economy are improving annually: self-checkout at supermarkets, self-check in and out at hotels, self-ordering and bill settlement in restaurants, self-administered health diagnostic tests and so on all translate into a reduced need for workers per dollar of gross domestic product on the one hand, and fewer total workers along with higher levels of GDP on the other. Horses were used extensively on the farm and in transport in 18th and 19th century America and Europe, but once mechanisation and electrification were implemented, and the railroad, automobiles and buses became commercially viable as transport

Farage, road rage and the ‘Top Gear’ political wing Notebook by Robert Shrimsley

‘We’ll just have to be ineffective without using torture from now on’ alternatives, owning horses became a hobby of the rich, and the horse population declined quickly and dramatically. The same can probably be said about humans in the 21st century: we just don’t need that many of them — and, in the rich countries, they are expensive to “produce” (prenatal and postnatal care), “assemble” (nurture and educate), and “maintain” (from adolescence to death). Ira Sohn Professor of Economics and Finance, Montclair State University, NJ, US

Yes, the CIA is flawed but it is not the enemy Sir, The Democratic majority of the Intelligence Committee of the US Senate has issued a thoroughly damning report accusing the CIA of exceeding its moral authority in instituting a rigorous interrogation of suspected Islamist radicals in the aftermath of the 9/11 attacks (“Senate accuses CIA of lying over brutal torture that leaves ‘stain’ on US values”, December 10). The findings, some of which are undoubtedly true, are disturbing, but so has been the committee’s investigative procedure. The Democratic majority on the committee conducted the investigation without Republican participation, the minority members having refused to join when it became apparent that Senator Dianne Feinstein, the committee chair, planned a partisan procedure. Thus, a one-sided

You have to sympathise with Nigel Farage, the leader of the anti-EU UK Independence party. There he was, stuck in traffic on the M4, a six-hour drive to the Welsh Ukip conference stretching interminably ahead of him. It is enough to make anyone lash out. To be fair, we’ve all been there. Well, not to a Welsh Ukip conference in Port Talbot, you understand, but fuming in some seemingly endless traffic jam, swearing at the dashboard at some improbable cause. (Traffic programme announcers sometimes like to attribute the delays to sheer volume of traffic — never just volume, always “sheer” volume — which seems rather like blaming thunderstorms on sheer volume of rain.) Of course, we only have Mr Farage’s word for it that his three to four-hour drive actually took “six hours and 15 minutes”. Perhaps he was lured into the Membury service station for a Whopper. But in any case, he was clearly sitting there, steaming. And as you do — well, as I do — you sit in your car moaning about the traffic and mouthing off safe in the knowledge that only your fellow passengers can hear you. (If one were looking to update the adage that no man is a hero to his valet, one possible alternative is that no motorist is a hero to his passengers.) When he finally reached Wales he was clearly still steaming. So when confronted by a BBC reporter about why he had disappointed his doting

will nevertheless need private capital, which will be picky about transparency and convertibility. The Silk Road Economic Project will be funded in part by China’s development banks in the western regions of China for the foreseeable future. The romance of the Silk Road is seductive and Chinese companies will doubtless look to be active in central and western Asia, but China is looking to its geopolitical leverage here, not an eastern Marshall Plan. Finally, there is a world of difference between greater use of the renminbi in the settlement and invoicing of world trade and finance transactions, and its use as a global or reserve currency. The former is internationalisation, which is proceeding apace as Mr Kynge and Mr Noble point out. The latter cannot happen unless or until China runs perpetual external deficits,

which will not happen any time soon, or it has built up a more trusted and deeper financial market infrastructure and, significantly, unless it allows its own residents unfettered access to physical, financial and portfolio capital markets overseas. When the Chinese talk about capital market liberalisation, this is at least one thing they do not mean. It is easy to talk about disliking or turning away from the US dollar in the global system. China’s rhetoric and initiatives have stirred this debate, and there is no question that from small beginnings, the renminbi will become a more widely used currency, similar to the Japanese yen, Swiss franc and pound sterling. The rest is, for the foreseeable future, more hype than hope. George Magnus London N6, UK

investigation. And it gets worse, for no witnesses were heard. The entire investigation relied on written file material without context that could have been acquired from first-hand witnesses. Worse still is that some conclusions, including that “enhanced interrogation” techniques yielded no actionable intelligence, simply defy logic and are denied by former CIA officers who were present at the actual questioning. We must recognise that Marquis of Queensberry rules do not apply in this combat, and that William Skardon (1904-1987), the legendary chief investigator for MI5, is no longer available to guide our efforts. The CIA is not the enemy Ms Feinstein’s Democratic majority would have us believe. Flawed yes, but still on the right side. Paul Bloustein Cincinnati, OH, US

Industry leaders’ climate demands made a mockery of Human Rights Day

Sir, The CIA is reported as conceding that it made mistakes in its treatment of alleged terrorist captives. Since when has the deliberate infliction of torture been “a mistake”? Horrendous, degrading, grossly immoral — yet a mistake? Some years ago Hillary Clinton, as US secretary of state, confessed to “misspeaking” — when she had made something up. Others have spoken of being “economical with the actuality”, when they have deliberately misled. And, returning to torture, the CIA and certain political leaders describe it as “enhanced” interrogation, with “enhanced” giving it the air of the spiritual and uplifting. Is it not time to tell things as they are — especially when they involve such horrific and degrading acts? Peter Cave London W1, UK

Debts are always paid — by someone Sir, Alfredo Pastor’s subtle use of words spreads an unfortunate misconception that debts (exceptionally of course) can end up unpaid (Letters, December 8). I put to you that throughout history no debt has ever ended up unpaid. The reason is simple: when borrowers fail to pay, lenders end up picking up the tab. By default. João Miguel Ejarque Copenhagen, Denmark

members — some of whom had paid £25 for the pleasure of doting in person — Mr Farage reverted to glaring-at-his-dashboard mode. Flashing that jolly look he deploys when he is about to say something truly outrageous, he replied that he had been delayed in traffic, caused mainly by immigrants on the M4 — because of the “population going through the roof, chiefly because of open-door immigration”. It was a bold defence. The M4 is often busy, but I’ve never seen a demographic breakdown. You did once find a lot of Romans on the road to Bath but the carriageways have been upgraded a fair bit since then. Mr Farage’s opponents jumped on the remark as a racist gaffe, proof that the mask had slipped. It was admittedly loose talk even for the Ukip leader, the kind of unverifiable rhetoric more suited to George Orwell’s “two minutes hate”. In a way, the mask did slip — but not perhaps in the manner most might think. This was not the Ukip leader showing himself to be a bit more racist than his opponents imagine. Mr Farage and his cohorts don’t care if urban liberals are outraged by his comments. He cannot be hurt, and may even be strengthened, by the opprobrium of those who already dislike him. He is not talking to them, and the people he is talking to don’t see anything wrong in what he said. They like his message that Britain is “full up”. The true self Mr Farage was

Sir, The demands by industry leaders for a “greater say in climate talks” (FT.com, December 10) insult the very concept of Human Rights Day. Corporations that pollute the atmosphere enjoy billions of dollars in subsidies, representation in many government delegations and invitations to UN panels as experts. International protection of corporate interests and investors’ rights has time and again crippled responses to the climate crisis, impeded justice for human rights violations by resource extraction companies and stamped a polluter’s bill of rights over the voices of people. Business does not need more representation in the climate negotiations — it has no business being here in the first place. Lucia Ortiz Economic Justice and Resisting Neoliberalism Co-ordinator, Friends of the Earth International

India, are you paying attention? Sir, For someone like me who arrived in Hong Kong not long ago, the recent movement, led mostly by young students, was an eye-opener. The more so since I come from India where street protests and movements are pretty common. What really struck me was the peaceful manner in which the students were able to convey their demands to the powers that be. One can only hope that protesters in countries like India watched the Hong Kong students and relearnt the message of peaceful and non-violent protest, so effectively used by the great Mahatma Gandhi. If this happens, the Umbrella Revolution will certainly have served a big, though unintended, purpose as far as the common public is concerned in countries like India. Samir K Jha Taikoo, Hong Kong THE BIG READ ON FT.COM Person of the Year Tim Cook, chief executive of Apple, stamped his identity on the business in 2014 www.ft.com/podcast

showing was not some crypto-fascist or closet Nazi. He was showing that he is, in essence, an angry man in a car. He and his party are road rage manifested in the political system. They are seething drivers stuck in the slow lane, complaining about crumbling infrastructure, useless governments and bloody foreigners. Ukip is the political wing of Top Gear — and Mr Farage is the unthinking man’s Jeremy Clarkson. (Or is it the thinking man’s; I can never decide.) Naturally there are legitimate complaints mixed in with the rage, not least about infrastructure that has not kept pace with population growth. But Ukip fundamentally combines the howls of an establishment class that somehow considers itself now outside the political mainstream with the more comprehensible anger of the dispossessed working class. An unholy union of “white van man” and leather driving gloves. Both feel an older better England has been taken away and — like Top Gear — lash out at alien classes, be they foreigners, minorities or anyone who does not conform to a world view set in aspic in the era of Fanny Cradock. Mr Clarkson laughs at outsiders; Mr Farage is less generous. But both are yearning for an older world; a world in which no one, but no one, dared get in the way of an Englishman in his motor car. [email protected]

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Friday 12 December 2014

11

FINANCIAL TIMES

Comment Market prices send the Fed mixed messages FINANCE

Gillian Tett

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his month, American consumers have received some early Christmas presents. Late last week, US payroll data revealed that the pace of job creation in America is now running at its highest level since 1999, as the economy continues to expand. Then this week the average price of petrol at the pump tumbled to $2.77 a gallon, some 61 cents below last December, due to falling oil prices. In a country that is addicted to cars, that could put another $100bn into the pockets of American households next year, Moody’s calculates. And there are other gifts. Global food prices are now about 5 per cent lower than last year. Even core US consumer price inflation (which excludes those volatile

commodities) has quietly slid to just 1.5 per cent a year, well below the 3 per cent level that consumers anticipated according to surveys. Or to put it another way, American households are now experiencing that rare blend of expansion with low prices. It is a mix that might make Santa smile. But sadly there is one big catch. Though lower consumer prices are a blessing for households, they leave the Federal Reserve in a bind. In recent weeks, it has been assumed in the financial markets that the Fed will start raising US interest rates in the middle of next year. Indeed, these expectations are now so well entrenched that many investors believe that when the Fed’s Open Market Committee meets next week it will modify its statement to remove a prior pledge to keep interest rates rock-bottom low “for a considerable period of time”. On the face of it, it seems there is every reason for the Fed to act. Growth next year is projected to be about 3 per cent, a healthy number; it could be nearer 4 per cent if consumers spend that projected $100bn petrol windfall.

Meanwhile, there is mounting evidence that the Fed’s super loose policy has been stoking excessive prices rises — if not dangerous bubbles — in numerous asset classes, ranging from art to risky corporate bonds to tech stocks. But the rub is that it would be very unusual, to put it mildly, for a central bank to tighten policy when inflation is so low, and falling. After all, the current

Given this, the most likely outcome is that the Fed will keep playing for time. That seems sensible 1.5 per cent rate is well below the Fed’s 2 per cent target. And what is really notable — and challenging for the Fed — is that the markets imply inflation rate could soon fall further. Take a look, for example, at the socalled “break-even rate” compiled by the St Louis Fed (this tracks the average future inflation rate implied by the difference between conventional and

inflation-linked treasuries). This week, the five-year rate fell as low as 1.24 per cent, while the 10-year rate sank to 1.71 per cent. That is well below the Fed’s target and lower than this summer, when rates were around 2 and 2.3 per cent respectively. They are now heading towards levels seen in the financial panic of 2008. Fed officials are uncertain about how to interpret this. Some officials, such as Stanley Fischer, deputy chairman, think this pattern is just a temporary effect of tumbling oil prices, which will fade once energy prices have been reset to a lower norm. They also think the message from that break-even index is being distorted by thin liquidity in global bond markets. They are consequently tempted to ignore the inflation numbers, particularly since there is a good chance that unemployment will sink below 5.5 per cent early next year — which the Fed thinks is the natural rate. Bill Dudley, governor of the New York Fed, recently hinted that falling commodity prices should actually strengthen the case for a rate rise because it will fuel US growth. But another strand of thought insists

that the Fed should not just ignore its inflation target. After all, this argument goes, not everything can be blamed on oil: as Eric Rosengren of the Boston Fed points out, the weak global growth outlook is suppressing prices, too. So is the bifurcated US labour market, where a minority of elite of workers enjoy high wages and security, but the majority remain plagued by low wages and insecure jobs, with a vanishing middle. Given this, the most likely outcome is that the Fed will keep playing for time. That seems sensible, given how much uncertainty surrounds the commodity markets, and the potentially momentous impact of the swing in prices. Meanwhile, there are two key points for investors to note. Firstly, this debate is a reminder that a big gap has opened up between the direction of asset prices and consumer prices. Secondly, as long as that gap keeps widening, central banks will remain caught in a trap, and the potential for bond market volatility will remain high. All eyes on the FOMC. And those petrol stations. [email protected]

London should break free from Little England GLOBAL POLITICS

Philip Stephens

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ondon does not need a mayor; it needs a prime minister. Britain is fracturing. Scotland may yet quit the union and England turn its back on Europe. The Conservatives are throwing up barricades against the immigrants who are the capital’s lifeblood. The world’s most vibrant capital city cannot entrust its fate to a little England. This is a moment to imagine a different future: independence. Boris Johnson, the present mayor, says he too wants power shifted from Westminster to City Hall. His demands — for a tad more financial autonomy and oversight of the courts — are piffling. Unsurprisingly so. Mr Johnson will soon vacate City Hall for the House of Commons. He aches to replace David Cameron in Downing Street. Mr Johnson’s loyalties to London count for nothing against consuming ambition. The economics of independence speak for themselves. With a population of 8.5m (closer to 13.5m in the wider metropolitan area) London accounts for more than a fifth of Britain’s gross domestic product and generates as big a chunk of its tax revenues. This gives it an economy about the size of Sweden.

Unemployment is less than 3 per cent; the demographic profile is more youthful than in the rest of the UK. Tourists spend £20bn each year in the capital. The metropolis has become a hub for high-value global businesses reaching well beyond its traditional role as a preeminent centre for financial services. It is the chosen home of the footloose super-rich and those at the bottom of the pile with the energy and grit to lift themselves out of hardship. London hums with enterprise, energy and people having fun. For those who do not fret about the ethnicity of their neighbours, it is a great place to live. Less well understood is that the capital has all the other attributes of a modern state: a natural frontier, superb transport links, first rate education and health networks, unrivalled heritage and cultural centres — even a readymade head of state. Then there are the six first class soccer teams in the Premier League and the spiritual homes of cricket and rugby at Lord’s and Twickenham. Sure, independence would leave some rough edges. Assets and debts would have to be fairly allocated between the separating parties. London can afford to be generous. The M25 orbital motorway is the ready-made frontier, providing access into the city and fast connections to the rest of England. The road’s on and off ramps are perfect sites for border control posts, though, in this the digital age, electronic surveillance and recognition devices would replace old-fashioned immigration queues. The identity chips

Martin Wolf ast week’s Autumn Statement marked the beginning of serious campaigning for the British general election due next May. George Osborne, Conservative chancellor of the exchequer, set out his perspective clearly. Ed Miliband, Labour’s leader, has responded this week. Where do the two main parties differ? And what chance does either have of delivering what they promise? Start with the second question. By far the most important economic uncertainty is over productivity. As the Office for Budget Responsibility notes, productivity has increasing on average by a mere 0.5 per cent a year since 2008. If it were to remain so low, economic GROWTH might fall to 1 per cent in 2016-17 and then below even that, as the

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economy reaches full employment. But if productivity were to have a burst of growth after the long lull, the economy might expand at about 4 per cent a year for some years. Given these uncertainties, we have little idea what will happen to the economy and the fiscal position. The political uncertainty is yet more striking. The two main parties have lost their purchase on the electorate; neither is likely to win outright. Research from YouGov indicates that the other parties together now have more support than either the Conservatives or Labour. The Scottish National party might even end up with more than 40 seats at Westminster. The likeliest outcomes are a coalition or a minority government. For a long time, the UK was a boringly stable democracy. It is still a democracy. But it is not boring. Nevertheless, the main parties’ fiscal choices will shape the campaign and frame choices for the next government. Policy makers have to make two big decisions: first, over the targets for the fiscal balance and public debt; and, second, over the relationship between tax increases and spending cuts.

OPINION

Nobuko Kobayashi

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apan’s carmakers are gleaming symbols of industrial strength. But there is one area in which they are not so shiny yet: employment practices that squander the potential of Japanese women. Both Toyota and Nissan have no women on their boards; Honda appointed its first only this year. The picture is repeated across Japanese industry, where women hold only 7 per cent of managerial positions compared with almost 45 per cent in the US. Female role models in Japanese business are few and far between. One of the few is Mitsuru Claire Chino, an executive officer at Itochu Corporation, a large general trading company. But she is such an unusual case that when she was appointed last year, the mere act of placing a woman in a senior job was enough to make headlines. Yet Japan needs women in senior positions in business everywhere, as the country seeks to prop up its declining working-age population and boost its faltering economy. Politicians know as much. In the run-up to Sunday’s general election, all the parties have spoken of introducing measures to support young families, so that women can both have families and work full-time. Yet there is a crucial point no one wants to address: a work culture that favours men. Bosses (mostly men) expect their staff to work as they did when they were young — which means long hours. It is important to be present to please the boss, whether or not the hours are productive. Even at foreign-owned compa-

The typical work culture calls for ‘nomi-kai’ — after-hours drinking sessions with colleagues now embedded in passports could readily be adapted for car windscreens. Heathrow, of course, is scarcely a good advertisement for a 21st century city state. But, under new management, it could be turned into a half-decent airport. The rest of England would inherit Gatwick as the entry point for airlines to the south east. Passenger ferries from London to the rest of Europe would run from the Thames port of Tilbury, while Dover devolved to the rump England. With its boroughs and town halls, London has the political infrastructure for a new democracy. Their electoral registers would determine eligibility to vote in an independence referendum. Assuming a Yes — I cannot imagine any other possibility — a new parliament would be established at Westminster.

The M25 orbital motorway is the ready-made frontier, its on and off ramps perfect for border control posts

London would eschew centralised government, adopting instead a federal constitution modelled on the one British officials wrote for the German Federal Republic. The city would thus recall a lesson Britain has forgotten: power is best exercised close to the people. Queen Elizabeth would retain her home at Buckingham Palace as the city state’s constitutional monarch. Membership of the Commonwealth would follow. The new state would join the EU, lifting the threat to the health of its global financial institutions and other professional services. Free of the influence of the europhobes (Nigel Farage’s UK Independence party scores badly in the capital), it would join the border-free Schengen area, ensuring its doors remained open to Polish doctors, Italian designers and French mathematicians. For a time, at least, London would keep the pound. The rest of England would be free to share the currency. Thus liberated, the capital would recognise that diversity is its strength. The children already doing most to raise standards in its schools are the offspring

of first-generation immigrants. For non-EU citizens, there would be a liberal, points-based immigration regime to attract the best and brightest from around the world and match employment openings with skills. Special arrangements would operate for workers travelling into the city from England. This should not be a problem. Britain already has an open borders model in the common travel area with Ireland. If England chose to build a fence on its side of the M25, however, its citizens would have to compete with Indian IT engineers and Brazilian entrepreneurs for work permits in London. Doubtless, the pinched English nationalists of Ukip and antiimmigration pressure groups would cry foul. Tant pis. Their vision of statehood, fixated on the proportion of the population that is “white”, is confounded by London’s success. Saloon bar bores in the home counties can be left to their anguished debates about identity. Londoners should break free. [email protected]

The battle over public finances will define Britain ECONOMICS

Male bonding and ‘chivalry’ hold Japanese women back

On both points, the Conservatives’ plans are commendably clear. They indicate a desire to deliver an overall fiscal surplus of 1 per cent of gross domestic product by 2019-20, against a deficit of 5 per cent this fiscal year (and 10.2 per cent in 2009-10). This would be delivered by curbs on spending, which is forecast to decline from 40.5 per cent of GDP this year (and 45.3 per cent in

The case for achieving an overall fiscal surplus in the next parliament is not overwhelming 2009-10) to 35.2 per cent in 2019-20 — the lowest ratio since the 1930s. Meanwhile, the ratio of fiscal receipts to GDP would rise slightly, from 35.5 per cent to 36.2 per cent of GDP. If delivered, these plans would put the UK in much the same place as today’s US in terms of the size of “general government”. These plans are indeed radical. That is certain. Mr Miliband’s announcement is less

clear. But Labour is committed to a surplus on the current budget alone (and so excluding spending on investment). In 2019-20, on OBR forecasts, spending as a proportion of GDP could — other things being equal — be about 2 percentage points higher under Labour’s plans, at about 37.5 per cent. Accordingly, the reduction in spending would be 3 per cent of GDP, against more than 5 per cent under the Tories. Labour would be cutting, but by substantially less. Which fiscal objective makes most sense? In normal times, balancing the current budget is the better choice. This is particularly true when, as now, the government can borrow to invest at long-term real rates of interest of near zero. The argument against is that public sector net debt is now too high, at about 80 per cent of GDP. Thus, a surplus would bring the debt ratio back to nearly 30 per cent by the mid-2030s, while a balanced current budget would bring it back to only 60 per cent. Yet this last is not the only consideration. It is unlikely that the further radical cuts in spending implied by the chancellor’s plans could be delivered

without compromising the ability to deliver the level of public services and transfers the public expects. That cuts have occurred without a huge political backlash so far does not disprove this. Furthermore, the chancellor’s plans also have implications for the balance between income and spending in the rest of the economy. The OBR forecasts that the household sector would move to “a historically large” financial deficit of 3.1 per cent of GDP in 2019, while the ratio of household debt to income would hit an all-time peak. This is worrying. The case for achieving an overall fiscal surplus in the next parliament is not overwhelming. The opportunity to borrow more for investment is too valuable, though the current budget should indeed be in surplus. Furthermore, if the aim should be an overall surplus, taxes need to rise. Otherwise, too much of the cost would fall on the most vulnerable people. Big questions arise over how fiscally prudent the UK needs to be. Equally big are those over who should bear the cost. [email protected]

nies such as mine, junior consultants sometimes stick around to provide moral support while others burn the midnight oil, sacrificing personal time in the cause of “team spirit”. The typical work culture at Japanese corporations calls for nomi-kai — afterhours sessions drinking and bonding with colleagues. It is less common than it once was for these end up at Tokyo’s kyaba-kura (cabaret clubs), where hostesses sit at the table and grease the conversation. But it still happens, and female colleagues are not welcome. So what do women do? Well, we put up with it. We are brought up to play nice. We want to please the boss and avoid ruffling feathers. Eventually the pressure of juggling work and family life takes its toll. My best friend works at one of Japan’s largest trading conglomerates. Of a large cohort of female graduates hired 20 years ago, she tells me she is the only one who is still working there. The few who persevere face another hurdle: male colleagues and bosses who try to “protect” them from excessive workloads. This prevents women being assigned to supposedly tougher projects or sent on business trips. This is not a conscious effort to exclude women from senior roles. I have spoken to highly educated and successful men over 40 who genuinely believe the “fair sex” needs extra care. Their misplaced chivalry deprives female colleagues of opportunities, hurting their prospects when it comes to senior managerial roles. The message to the younger generation is that working seriously and professionally does not pay off. Can changing the work culture have an impact? There are encouraging glimpses of progress. Legal departments at Japanese corporations generally employ a higher percentage of women — sometimes up to 40 per cent — because here brainpower is all that matters, and face time is less important in a support role. Furthermore, the notion of “protecting” women is less prevalent. Is it a coincidence that Ms Chino, the executive officer at Itochu, hails from the legal department? It is a start, but Japan needs to replicate this across all its industries. Progress will mean changing the way performance is measured and rewarded. Women themselves, with support from a new generation of men, need to be catalyst for change. Japan must not pay lip service to harnessing the potential of its women. The writer is partner-elect at the Tokyo office of AT Kearney, a consultancy

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FINANCIAL TIMES

Friday 12 December 2014

BUSINESS LIFE Personal technology

Best podcast apps Playlists, alerts and settings as podcasters win a new hearing TIM BRADSHAW

Sarah Koenig, the journalist who makes Serial

The man mending careers and hearts WORKING LIVES

Emma Jacobs Destructive habits at work are often mirrored in relationships, according to Manj Weerasekera, a coach who tackles both

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anj Weerasekera had an itch of an idea that would not go away. The executive coach kept meeting senior businessmen who in the course of their work-focused meetings would reveal that they were having relationship problems at home. It was only after entrusting career problems to him that they felt comfortable enough to discuss their personal lives. Mr Weerasekera, a 50-year-old divorcee, today dressed in a navy cowl-neck jumper, describes himself as “happily divorced”, meaning he had an amicable split rather than being pleased to see the back of his wife. He thought these men needed a helping hand, not from a therapist but a coach. Today, after offering such services for three years, he says 40 per cent of his work is dedicated to guiding divorced men to their ideal partner. Such advice does not come cheap. Mr Weerasekera charges up to £2,500 a month for his services — this buys 90 minutes of face-to-face private coaching in his office in central London, and unlimited phone calls and emails — and might see a client for eight months (though, he points out, there is free advice available on his website).

When he started researching his business idea, he was struck by recurring problems for people in new relationships post-divorce. “The more I talked to men, I found a pattern . . . There is a large percentage of men who end up marrying the same woman in a different body,” he says. Originally an engineer who worked for NCR and subsequent spin-offs when they were bought by AT&T, Mr Weerasekera, who has six sisters and parents who came from Sri Lanka, had a “healthy interest in amateur psychology” and trained as a coach. Finally he decided to step off the corporate ladder and go it alone, coaching executives from banks, telecoms and oil companies, on how to change their mindset. After helping professionals boost their careers for a number of years, he started to look into the market offering help to divorced men. There was, he realised, little competition. “I found a decent coach in America and another teaching men how to hide their assets,” he says. “It’s such an open space, there’s space for a lot of good coaches.” The books aimed at men tended to be mired in the 1970s, proffering tips to divorced men on how to date, or written by pick-up artists teaching men how to play the game and bed women. On mention of Julien Blanc, the pick-up artist extraordinaire who was last month banned entry from the UK, after being accused of championing sexual assault, Mr Weerasekera visibly recoils, emphasising that he is not operating at the “sleazy end”. He has a precise demographic in fact: a male executive (“in middle to higher management”), over 40-years-old. Most importantly, “they’re interested in attracting the right person for a longterm relationship, learning from their mistakes”. This is all about mindset changes, he says. There are parallels in business. Mr Weerasekera finds his cli-

ents believe that leaving a company will solve their career problems. “People often run away from themselves but they don’t realise they’re taking them with them . . . [They’ve] got to change their thinking.” Many of his clients find making changes in their personal life far scarier than in their working life. The metric for success is when a client says: “Actually this isn’t scary, I know what to do . . . I’m feeling more confident in myself.” He insists he has been invited to a few wedding ceremonies and introduced as the groom’s coach, and very occasionally as a dating guru. One of the biggest hurdles for single men to overcome, he claims, is antago-

The ‘happily divorced’ Manj Weerasekera Daniel Jones

Many of his clients find making changes in their personal life far scarier than in their working life nism towards their ex-wives. On a first date, too many complain about their exes, according to the coach. “How attractive is that?” (The answer, if in doubt, is not very). “So what we do is lose the baggage. It doesn’t mean you erase everything that happened. Just dampen the impact.” Mr Weerasekera, sipping peppermint tea in a bar of a hotel in Putney, southwest London, close to his home, speaks with precision. He is not recommending that people fake it on a first date — if they have not made their peace with the past the festering resentment and anger will only come out later. The next step is to “design the type of woman” the client would like to meet. While many focus on appearance, Mr

Weerasekera insists that what most of his clients are hankering after is to “feel they can be themselves in a relationship”. He cites one man — a typical client — who came to him, by way of example. His ex-wife no longer shared his interests and they had grown apart. One of his passions was yoga; she was not interested. “That type of thing [can prompt] ridicule . . . can lead to arguments.” So Mr Weerasekera asked his client a salient question. “In order to attract that type of woman, what type of man do you need to be?” The client needed some self-improvement. After 20 years of marriage, he had let his appearance slip: his paunch was soft, his wardrobe, dated and his personal grooming below par. The coach has a list of professionals — personal shoppers and trainers, grooming experts — to help. “One of the mistakes men make is they think they can do it on their own and they don’t need to. Why wouldn’t you find an expert to say, ‘I think this cut of jacket would suit you better’?” He might also advise on an online dating profile. The most common mistakes his clients make are taking bad selfies with a webcam or picking flattering portraits that are 20 years out of date as well as writing bland personal statements, recounting a love of walks, reading the weekend papers and watching a DVD from the sofa. A breezy reference to their status as divorced is important too. In his opinion too many men “jump in” to dating too soon after a separation (he also believes that women wait too long). One man he worked with posted his dating profile online just 48 hours after deciding to divorce. He also believes that people should stop seeing divorce as failure. He reflects on his own experience. “When we were together we were great.” [email protected] Twitter: @emmavj

Blissbasket spares India’s blushes in spite of risqué products A web retailer has found a way to tap Indians’ private desires, says Amy Kazmin Ancient India gave the world the Kama Sutra, a poetic guide to sexual pleasure, with in-depth descriptions of desireenhancing techniques and creative copulation positions, but contemporary Indians are so reticent about sexual matters that even buying condoms can be excruciating. “If someone is standing there in a medical store buying something else, someone won’t be able to say, ‘I want to buy condoms,’” says 28-year-old Mayur Masrani, the scion of a family of commodity exporters. “The shop has to be free from customers. Only then would they be able to buy condoms.” But Mr Masrani says young Indians are keen to explore their sexual sides — and ecommerce offers the ideal mechanism. In January, the entrepreneur launched Blissbasket, an online retailer dedicated to selling “romantic products”. Edible lingerie; chocolate and

strawberry body paint; sexy teddies, tight corsets and revealing g-strings; raspberry- and mango-flavoured lubricant, satin blindfolds, small handcuffs, sex toys and condoms are all on offer, as are naughty games, pulp fiction like Fifty Shades of Grey, an array of sexual manuals, and academic treatises on human sexuality. The imagery on Blissbasket’s homepage suggests its wares belong in a context of love, romance and joy. In one cartoon, a boy and girl smooch under a tree. “We are born to love and be loved,” the tagline reads, while another says, “couples who play together stay together”. “People are definitely looking for something quirky or raunchy to spice up their sex life, or romantic life,” Mr Masrani says. “They are not looking for hard core products. It’s more about romance.” The response, he says, is “fantastic”. Without advertising and relying on word of mouth, sales are

An adult board game on sale at Blissbasket

growing 40 per cent month on month, he reports. In November, the site received 650 orders, with an average value of Rs1,600 (£16), from big cities and small towns across India. Mr Masrani got the idea for Blissbasket after trying to buy edible lingerie in India for a newly married friend. Shopkeepers had never heard of the stuff, offering pornography instead. A year later, Blissbasket went live. “The category I am concentrating on is really sexual wellness,” he says. “It hasn’t existed in India before.” Blissbasket, funded entirely by its founder, is not the only etailer of bedroom paraphernalia. India’s biggest online marketplaces, Flipkart, Amazon and Snapdeal, offer sexual wellness products like condoms and pleasureenhancing sex toys. Still, Mr Masrani, who also supplies

items sold on Flipkart and Snapdeal, believes there is room for a dedicated site catering exclusively to Indian erotic desires. “Even in the medical profession, a generalist is one thing, and a specialist is something else,” he says. “We are specialists in this category.” Blissbasket emphasises protection of customers’ anonymity and privacy; its products arrive in a plain brown box with no identifying labels. It gives elaborate product descriptions suggesting how customers might use unfamiliar items and will discreetly answer common queries. Navigating India’s broad-brush obscenity law has been a challenge. Mr Masrani learned the hard way — by having an import consignment destroyed — that vibrators shaped like genitalia are banned in India, although “massagers” are all right. Blissbasket now sells around 500 different items, but expects to offer 1,200 items within the next two months. It is forecasting vigorous growth ahead. “It’s a perfect business for ecommerce,” says Mr Masrani. “There is no embarrassment factor.”

The Serial phenomenon has thrown podcasting back into the headlines in the past couple of months, spearheading a revival in downloadable episodic radio. If this intimate telling of a true-life murder investigation has piqued your interest in podcasts, there are many apps out there that can improve your listening experience, help you find new podcasts and manage them into playlists. But it’s a crowded market, so here are a handful that improve on the rather rudimentary Podcasts app that Apple bundles with every iPhone. Best for beginners: Overcast From the developer behind readit-later app Instapaper, Overcast puts customised playlists front and centre. The home screen is divided into playlists and a list of podcasts you subscribe to. If you connect your Twitter account, Overcast will suggest items that people you follow have listened to. An assortment of other lists can be followed with a single tap. Simple and intuitive, it is a good place to start for newcomers to podcasts, but its features feel limited next to many similar apps. Free, with extra features for $5; iOS only

Best for free: Instacast This solid, free app is unencumbered by banner ads. However, it falls a little short in design and it buries some of its features in a side menu. The home screen can be set to a list of podcasts you have subscribed to, or a list of their latest episodes, or unplayed downloads. You can receive alerts when new episodes are available for podcasts you subscribe to. To find new podcasts, tap through lists of genres, authors (including media groups) and the most popular with the app’s users. During listening, the player controls are clean and simple, with buttons for speeding up speech, setting a sleep timer or bookmarking a point to come back to later. Free, with extra features for $0.99, iOS only Best design: Castro For aficionados of a minimalist approach to software design, Castro is one of the slickest podcast apps, full of swipe-based controls that do away with navigation buttons wherever possible. Opening the app lands you straight in a list of most recent episodes — which I

prefer because it removes a step before you can start listening. The play screen has only a few buttons but does include a particularly good “scrubbing” control, where you pull a finger along the progress bar to skip to a different point. More advanced settings in a separate menu include accelerated or slowed-down playback speed with smoothed-out audio. However, you do have to have an idea already of what you want to listen to, since Castro does not make recommendations. $4, iOS only Best for personalisation: Stitcher Sign up, select a few podcasts you like, and this free app uses what it has learnt about you to make further suggestions. The results are presented a bit like Facebook’s news feed, with big images and the option to listen immediately or save it on a “listen later” playlist. Stitcher also allows you to browse new or “trending” shows, and also explore content according to usual categories. Playback includes a car-friendly option with supersized buttons you can jab without having to peer at them, as well as the option to give a “thumbs up” to help improve its recommendation algorithm. The only downside: banner ads that pop up from time to time. Free, iOS and Android Best overall: Pocket Casts Pocket Casts is a comprehensive but elegant podcasting app for both iPhone and Android. The home screen is a grid of a dozen or more podcast icons. Tap one, and a list of episodes appears, with the option to download, stream or add it to your queue of items to listen to. Swipe right from the home screen to see its “episode filters” list, which can be customised to include a subset of your subscriptions. A key feature is automatic downloading and notification of new episodes, so they are ready to play as soon as you open the app. Discovery is also a strong point. As well as browsing the top charts, groups of broadcasters and broad categories, the Pocket Casts team highlight interesting new podcasts that might otherwise go unnoticed. $4 iOS and Android

An ear for terrestrial radio

TuneIn Radio While podcasts are great for catching up with internet broadcasters, TuneIn brings the world’s traditional radio to your smartphone. This

popular free app offers more than 100,000 terrestrial stations to listen to live. Earlier this year it got an overhaul, making it easier to discover interesting radio from around the world and adding social-networking features, such as the ability to follow stations or see what friends are listening to.

★

Friday 12 December 2014

13

FINANCIAL TIMES

ARTS

A saga so stretched, even Wagner would call ‘cut!’ Hat-trick: Ian McKellen leads the charge in the final part of the ‘Hobbit’ trilogy. Below: Mosab Hassan Yousef in ‘The Green Prince’

CINEMA

Nigel Andrews

T

he new technique in largescreen storytelling is to tell a whopper, then follow it with a prologue whopper no less whopping. The Hobbit trilogy, like the Star Wars prequels, suggests that the answer to “Can you have too much of a good thing?” is, first, “Yes”, then “What is the philosophical definition of a good thing?” Sometimes the same term, or almost same, has two opposite meanings. Take stupendous and stupefying. Thanks to the miracles of CGI and Peter Jackson’s imagination The Hobbit: The Battle of the Five Armies is both: a kind of twoand-a-half-hour frenzied swoon in which the special effects never stop, the gargantuanism never lets up, and a critic who has long since lost the plot (never knowingly having finished reading Tolkien as a youth) clutches at speeding dialogue like fly-by signposts. Unfortunately the dialogue this time is a mixture of embattled vernacular and Shakespearean name-soup. You need a knife and fork as well as spoon for all the Oakenshields, Arkenstones, Elvenkings. This isn’t the best script of the Tolkiens to date; in fact it’s the worst. Trippy in the wrong way; high on a kind of doper shorthand that assumes — possibly correctly — that paying devotees will recognise every name, rank, serial number and buzz-nomenclature. If not they will be left, like me, sorting the exclamatory leftover babble, usually uttered in midbattle. “Slaughter them all”; “There are too many of these buggers, Thorin, I hope you’ve got a plan . . . ” The series has started to look retro in the wrong way: retro Jackson, reaching back only into itself. The first trilogy had beautiful, often thrilling invocations of gothic artist-illustrators: Gustave Doré, Salvator Rosa, Arthur Rackham. The Hobbitsaga,remouldingthesamemulch,

The Hobbit: The Battle of the Five Armies Peter Jackson

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The Green Prince Nadav Schirman

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Manakamana Stephanie Spray, Pacho Velez

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Merchants of Doubt Robert Kenner

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stretches it towards twee one way, bombast the other. The opening scene’s dragon attack on Lake-town is a tour de force, but you have to like tourist-style force: a picture-postcard-Dickensian Nevertown bombed by a firebreather so show-off-hyperkinetic it spoils us for the remainingfull-lengththemeride. After that it’s an alternation almost regimented between quaint but fulsomely cosmeticised idylls or interludes — dwarves, designer-Hobbitish Martin Freeman, Shire epilogue — and cast-ofmillions battle scenes. Since we know these are conjurable on computer there’s little thrill of DeMille; more runof-de-mill as the turning wheel of Jackson’s invention produces ever the same waves of almighty action choreography. The massed militias moving into frame; the encircling mountains with skylined demi-monsters; the crunching, cleaving combat close-ups; the final triumph of good over evil. Even Richard Wagner knew when to stop. Thirteen hours, four operas: time to wrap. Peter Jackson has now done his Ring Cycle Part Two. Enough,

Left-field and lush with an iron logic Top brass: Avishai Cohen at The Vortex in London

JAZ Z

Avishai Cohen’s Triveni Vortex Jazz Club, London

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Roger Thomas

Mike Hobart Avishai Cohen is a refreshingly original trumpeter with a distinctive sound, and influences that stretch far back into the jazz tradition. Solos dart from swing era slurs to smooth modernist lines, and bursts of post-bop angularity end in spiky folk melodies straight out of the contemporary left-field. At this packed jazz club date, his repertoire was equally wide-ranging. The first set presented an original instyle tribute to Ornette Coleman, “Mr OC”, and a moving reading of Charles Mingus’s “Goodbye Pork Pie Hat”. The second included an achingly slow “Lush Life”, a Basie band showcase and Frank Foster’s “Shiny Stockings”, and had Dizzy Gillespie’s “Woody’n’You” as an encore. Cohen was raised in Tel Aviv – he moved to New York in 1998 – and adds Middle Eastern laments and folk dance jollies to the mix. At this gig, he held it confidently together with an iron logic and a band that marked core structures while letting the music breathe. The France-based bassist Yoni

OPERA

La Clemenza di Tito Théâtre des Champs-Élysées, Paris

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Francis Carlin This new staging of Mozart’s penultimate opera takes place in a grand hotel lobby in the interwar years. What relevance this update has for an opera about a court intrigue in ancient Rome never becomes clear. Director Denis Podalydès moves the cast around efficiently, does nothing with the chorus — often a weakness with producers from the straight theatre — and makes a bid for originality by having an actress recite Bérénice’s farewell from the Racine tragedy before the overture. The intense exchanges during the recitatives have to battle with clattering arpeggios from an overactive fortepiano — its role should be to accompany not play a concerto — so arguably the theatre would be more effective with a silvery harpsichord in the pit. Even so, today’s really original

Zelnik had a fat sound and a forceful attack, but the linchpin was the relationship between Cohen and drummer Nasheet Waits, who has been a Triveni trio regular since the band released their first album in 2010 – this date was the penultimate show of an extensive European tour promoting their third album, Dark Nights and Darker Days. The trumpeter has a strong, centred tone that remains slightly breathy and fragile at the edges, and drummer Waits has an equally complex spectrum of sound. Short, stubby press rolls were crisply delivered, but ended in resonant whumps or the rattle of a broken march,

while cymbals swished and then cohered into economical swing of enormous power. Throughout the gig, Cohen and Waits interwove, changed direction and delivered mutual support with extraordinary empathy and no trace of visual cue. Zelnik, needing only the occasional nod, was not far behind. At times, there was so much space that silence became a sound; at others the music was as densely layered as a medium-sized band. It was a riveting performance that pushed at extremes and always had surprises in store.

approach would be to go for togas, a forum and temples. At least that way the offstage arson in the Capitol would work; here we are meant to believe the hotel itself is burning but its occupants flout the fire drill by singing on bravely despite the engulfing smoke. Directorial silliness apart, the production has one big advantage: Eric Ruf’s

handsome panelled interior acts as a sound box for what is generally a very fine cast. La Clemenza di Tito is a dramatically feeble venture centred on manic dithering, so any production that, wittingly or not, allows the singers to bloom is on to a good thing. Karina Gauvin makes an imposing Vitellia, Julie Fuchs a peachy Servilia and Robert Gleadow a strong Publio while Julie Boulianne’s earnest, powerfully sung Annio is a mezzo voice to watch. Only Kurt Streit’s Tito — expressive but edgy and even shouty — is a disappointment. The biggest ovation went to the other mezzo, Kate Lindsey, as Sesto, the opera’s linchpin. Blessed with a voice that can cover several emotional registers, she takes huge risks in her big aria, “Parto, parto”, but romps home triumphant. Jérémie Rhorer’s splendid conducting has authority, breadth and clarity. Tempi are daringly contrasted but somehow never seem mannered. His period instrument band, Le Cercle de l’Harmonie, has never sounded better.

Kate Lindsey, left, and Karina Guavin

theatrechampselysees.fr

vortexjazz.co.uk

surely, for the present and for any foreseeable future. Nadav Schirman’s The Green Prince is a true-life thriller presented as narrative reconstruction surgery. It’s fascinating to watch and hear the documentary’s “hero”, Palestinian-born Israeli agent Mosab Hassan Yousef, tell his story to camera, in alternation with his secret service handler Gonen Ben Yitzhak. It enriches that fascination to have Schirman’s inter-threadings of historical film, surveillance footage and re-enactment scenes (lit and angled for teasing obliquity) as this tale of a turncoat Muslim asks questions more urgent today — arguably — than ever before. Should you be faithful to the family, people and religion you were born to? (Mosab was the son of a Hamas founder.) Or in a world of fanaticism and faith-licensed folly, should you “betray” the values of your background and their upholders? The question posed here is whether Israel is a milder, or more rational and enlightened, monster than Hamas. Yes, for the film’s

purposes. Food for feud outside it. As cinema it’s spellbinding. Mosab’s face, lit as if by the glow of an interrogation lamp, and Mosab’s voice, forceful and conviction-impelled until a momentary late cracking with emotion, make him an irresistible storyteller. And then there is the story: Le Carré for real, with twists, turns and those most telling torture scenes of all, the ones that put a man in a bare room, metaphorically speaking, and confront him with his conscience. What price a work of conceptual art if you can’t stand its concept? That’s what I thought during the first scenes of Manakamana. Then the film’s seemingly idiotic idea begins to seem holy-idiotic: mad, simple, incandescent, a Prince Myshkin of ideas. All that American filmmakers StephanieSprayandPachoVelezdois shoot 11 separate passenger journeys, each in an 11-minute take, up(duringthefilm’sfirst half) and then down a cable-car ride

to/from a Nepalese mountain shrine. It’s “pure cinema” to a degree delirious. One: the 11-minute trip exactly matches the capacity of a 16mm film reel. Two: the fixed-camera journeys in the car spool between turning-points just like a camera mechanism. Three: one lot of “passengers” in a viewing “vehicle” — we filmgoers — are watching for two hours another lot of ditto. If you feel such cinema should be made arrestable, sample it yourself to learn otherwise. What makes Manakamana sing — apart from the chant of cables punctuated by the rattle-clang sforzandi each time we skirt a pylon — is the human interest. Some passengers talk; others don’t talk but radiate thought, curiosity, preoccupation, rapture or just Buddhistic beatitude. One trip features goats; another, heavy metal rockers; a third, three talky old ladies unspooling, Norn-like, the story of the shrine’s god. All human life is here, and some meta-human, in an artistic container you never thought you’d travel in, or enjoy if you did. The most abused word in the media world is “experts”. If every expert on TV or in feature documentaries were a true expert, we’d be drowning in expertise like a Second Flood. But they’re not and we’re not. Down the decades, Merchants of Doubt argues and illustrates, charlatan scientists and scholars have been mobilised by the hand of oil or tobacco, this documentary’s villains, to retaliate against truth and true expertise — that cigarettes kill people and fossil fuels kill planets — with the expertise of pseudoscholastic scepticism. “There’s no evidence that . . . ”; “It’s only a theory that . . . ”; “Statistics can show that . . . ” Statistics can show that scoundrels are scoundrels; and that the only thing worse than someone crying wolf when there isn’t one is someone refusing to cry wolf when there is. Chastening; grimlyfunny;salutary.

FINANCIAL TIMES

★

14

Friday 12 December 2014

Join the club Lending Club loan issuance mechanism after loan approval

Investors Borrowers Loan certificates

Twitter: @FTLex Email: [email protected]

Money

Technology, had filed for bankruptcy just months before. As for the Watch, when Apple lives happily ever after, its suppliers may or may not. All singlefunction components commoditise in the end. That, alas, is no fable.

Taiwan tech: the screen and the cycle Once upon a time, in a kingdom called Taiwan, lived many happy companies making electronics. They provided decent goods at low prices, more efficiently than anyone else. They were beloved by gadget sellers and consumers alike, even if the latter did not know the companies’ names, or even that they existed. At least the hard-working companies didn’t care for fame. In the early years, Taiwanese companies were very good at assembling laptops and computers. Margins were thin, but volumes were good. In later years, when smartphone sales were growing at more than 20 per cent a year and the sector was dominated by Samsung and Apple, times were even better. Component makers and assemblers did well (when Samsung and Apple said it was OK). One day, things changed: Chinese companies started making cheap phones. Sector growth looked likely to slow down and manufacturers had to work harder to keep up. Companies such as Largan (lenses) and Catcher (metal casings) and TSMC (semiconductors) produced products that were very hard to make, trendy or had many applications and profound economies of scale. These enjoyed 40 to 50 per cent gross margins. This made for happiness. Others made commodity components with specific applications. Screens, for instance, were a crowded business. With the TV market maturing, there was overcapacity. This was very sad. One part of the screen industry made good money: the touch function. Not many companies could make them. Those that could, such as TPK and Wintek, made gross margins in the mid teens. But in time that, too, changed. Touch became easier to integrate; TPK and Wintek were no longer so special. Worse, laptop touch screens did not catch on. Wintek suffered from overexpansion. TPK had spent about $500m on a big new plant due to open in 2014; it delayed opening the facility but it looked likely it would have to open in early 2015. This was sad, too. Two things could save TPK: adoption of sapphire displays or huge success for the Watch. TPK was hopeful, but the omens were not great. Apple’s sapphire screen partner, GT Advanced

Eurozone banks: horsing around Loan Investors’ certificates money

Miners: race to the bottom

Loan certificate Money

It takes about 45 days for an iron ore carrier to sail from Brazil to China. So the first fruits of Minas Rio should be arriving any day now. Anglo American spent $5bn to buy this mine and almost $9bn to develop it, incurring $4bn in impairments and losing a chief executive along the way, before it could ship the first 80,000 tonnes of ore in late October. Spot iron ore prices were $79 per tonne then. They have fallen by $10 while the ore was in the hold. And that, an investor might declare, is why Anglo American’s shares are changing hands for just 10 times next year’s forecast earnings, and will not be trading higher in the near future. Miners fed oversupply with their spending. They are reaping the results. BHP Billiton has lost $70bn in market capitalisation since the end of July, or nearly the entire value of another big iron ore miner, Rio Tinto. BHP also produces oil. But both it and Rio will keep the pedal to the metal with iron ore expansion next year. With four-tenths of its operating earnings from iron ore, Anglo will be affected by the flood of supply despite selling other commodities, too (and unusual ones, like diamonds). Anglo also promised investors that it could raise returns on capital employed to 15 per cent by 2016. That target has now retreated into the depths. It assumed $7.3bn of earnings before interest and tax by 2016, using spot prices from June 2013. Plug in the consensus for 2016 prices and ebit drops to $5bn for a 12 per cent ROCE. This might all be a repeat of the usual lesson of investing in miners. However much operational progress gets made — and finishing Minas Rio counts a lot — big commodity price drops can obscure it. True. But then, Minas Rio will not have to be built again (future impairments are another matter). Its ore is low cost to produce. Anglo may stay cheap. But its holes are

Issuing bank (LC subsidary) FT graphic. Source: company

Revolutions tend to eat their firstborn. Lending Club wants to lead a “peer-to-peer” lending revolution. The $9bn valuation it received when it floated yesterday (after a huge first-day pop) is astonishing. The company, after all, had just $160m in revenues over the past year. A multiple of 50 times sales is a bet that a company will take over a fastgrowing market. But the first mover does not always dominate. Lending Club is positioned for fast growth because it is not a bank at all, but a middleman. It is to banking as Uber is to cars: it brings people who want to borrow money together with those who want to lend. Nearly all its revenues are origination fees of about 4 per cent, on average, collected for

matchmaking. The borrower gets quicker approval than walking into a bank branch. Lenders can diversify across many borrowers, reducing credit risk. Lending returns are also good, approaching double-digits. The fees, and lack of balance sheet risk for Lending Club itself — that belongs to the lenders — makes this a simple, juicy business. Today, the consumer lending market covers nearly $2tn in loans. P2P hasn’t even scratched the surface with origination volume of just $9bn. But when the revolution is over, will Lending Club still be the leader? By listing first and getting attention for its novelty, it gains an advantage. But there are dozens of start-ups on its heels and those second movers will

learn from Lending Club’s mistakes (think of all the regulatory problems that Uber is running into). Traditional banks should not be too worried. Lending Club and its copycats have not had to weather a full credit and economic cycle. Higher rates or higher defaults could quickly diminish P2Ps appeal to lenders. And the lending market is so vast that P2P could be a collaborator with traditional financial institutions who could pawn off customers that it finds unprofitable to P2P. Mechanics aside, Lending Club has not justified its valuation. It is, essentially, a website. The irony is that the company has made a better case for lending through its platform than for investing in its equity.

dug. You cannot say that about BHP or Rio Tinto. And no matter how cheap iron ore gets, costs matter.

meanwhile, its strategy centres on increasing broadband penetration (70 per cent) and 4G mobile coverage (75 per cent). It has hinted that while it likes its position in Brazil, it is prepared to consider bids for TIM. This attitude toward Brazil keeps the pot simmering. Recent reports suggest that Spain’s Telefónica, along with Claro (owned by Carlos Slim’s América Móvil) and Oi might bid $15bn for TIM. This values TIM at seven times enterprise value to estimated earnings before interest, tax, depreciation and amortisation, according to Berenberg, a decent premium to the 5-6 times at which its Brazilian peers trade. TI should be greedy. Brazil represents a fifth of group ebitda, and even the modest profit there is stronger than what Italy offers. Yes,

consolidation is needed in the Brazilian telecoms market. Competition among the four big players is hot. But Moody’s points out that if TI acted as the consolidator in Brazil its credit rating would suffer. If TI cannot act as consolidator, it should entertain offers and be patient until a rich one comes in. It can afford to wait. According to Credit Suisse, TI will have free cash flow of more than €3bn this year and next. Net debt is less than 3 times ebitda — so while a big purchase would be a challenge, it needn’t rush to cut leverage. The proceeds from a deal could reduce debt, fund a payout and leave room for investment at home. TI’s shares have had a good run over the past year, up 38 per cent, well ahead of the MSCI European Telecoms index at 17 per cent. Stay at the table.

Telecom Italia: stewing nicely The slow-food movement started in 1986 as a protest against fast-food chains opening in Italy. Perhaps the time has now come for a slow company movement. Telecom Italia could be a founding member. It has good ingredients. It just needs them to come together in their own time. TI is Italy’s incumbent operator and owns two-thirds of the Brazilian mobile company TIM Participacoes, the country’s second largest. In Italy,

Today’s temperatures 1000

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59 17 54

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72 73

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Forecasts by

Abu Dhabi Amsterdam Athens 1020 Atlanta Beijing 36 LO ntre Belgrade Berlin o nto Bermuda 6 Bogota w York Brussels Buenos Aires Caracas shington Chicago 45 50 Copenhagen Dallas 16 Delhi 48 59 Dubai Dublin Edinburgh 61 Frankfurt Geneva Hamburg Helsinki 6 Mia i Hong Kong Honolulu Jakarta Karachi Lima Lisbon London Wind speed Los Angeles in MPH Luxembourg

CROSSWORD

No. 14,803 Set by BRADMAN 











 

















 





 











JOTTER PAD

Lending Club has orginated over $6bn of current loans. Borrowers use funds to refinance debt (60%), pay off credit cards (22%) and for business (2%). Almost 80% of lenders are institutional investors

Sun Rain Rain Sun Sun Sun Rain Rain Drizzle Rain Sun Sun Fair Shower Shower Sun Sun Fair Shower Rain Fair Rain Snow Fair Cloudy Thunder Sun Cloudy Cloudy Rain Shower Rain

ACROSS 1 Piece of mathematics old geometers worked out – hard to penetrate it (6,7) 9 International organisation’s team is loose (going round in circles) (7) 10 Adroitness of female actually existing (7) 11 Girl collecting gold and hard white stuff (5) 12 So sincere about a big financial problem (9) 13 Good person feels irritation – result of surgical treatment? (8) 15 Moderate anger (6) 18 Quality of wood that is a bit twisted at one end (6) 19 Lifeless principal is a fishy type (8) 22 What may be on smartphone – pictures etc showing food (5,4) 24 Brush could alternatively be shrub (5) 25 Away team no longer in the changing room? (7) 26 See weed grow out of control – rodent will eat it (7) 27 Drivers into the ground make offensive comments to Upton Park players (13) DOWN 1 A university peters out after good reunions (7) 2 Me? I’d stop awful tyranny (9) 3 Overweight woman eating last bit of hamburger (5) 4 Cheaper and nastier item for wiping marble? (8)

27 9 14 13 3 8 9 22 18 9 28 30 5 7 22 22 28 3 4 9 8 9 3 17 27 32 27 24 13 10 16 8

81 48 57 55 37 46 48 72 64 48 82 86 41 45 72 72 82 37 39 48 46 48 37 63 81 90 81 75 55 50 61 46

Madrid Manila Melbourne Mexico City Miami Montreal Moscow Mumbai Nassau New York Nice Oslo Paris Prague Reykjavik Rio Rome San Francisco Seoul Shanghai Singapore Stockholm Sydney Taipei Tel Aviv Tokyo Toronto Vancouver Vienna Warsaw Washington Zurich

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5 Get rid of very loud star after end of performance (6) 6 Children (apart from one of them) on the uphill path, getting new vitality (9) 7 African mothers, tip-top (5) 8 Less productive student deficient in one of the R’s (6) 14 This writer has inaccurate article about friar (9) 16 Star with external power and endless cash, the means to attract a mate? (9) 17 Greek writer’s place linked with tree (8) 18 Little ‘un eats ‘uge pile – sitter on kitchen table too! (6) 20 Puts down D, D, . . . when test is held (7) 21 Scoundrel that’s hard on the outside and nasty inside? (3,3) 23 Ways to show sadness but not love (5) 24 Get something to chew as you might say indeed! (2,3) SOLUTION 14,802 7 ( & + 1 2 3 + 2 % , $

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You can lead a horse to water. You can put the water in a tall glass, add ice, a wedge of lemon and a cute little paper umbrella. You can bring the bendy straw right up to the horse’s lips. But if the horse is not thirsty, it will not drink. Thus the eurozone’s banks took up only €130bn of the €317bn available in the second round of the European Central Bank’s targeted longer-term refinancing operations (TLTRO). This gives the banks very cheap loans (at 15 basis points) for four years as a way of encouraging lending to businesses. The banks showed more interest than in the first round (when €83bn was slurped up), yet the take-up fell short of forecasts of €170bn. Reluctance to take cheap money gives credence to the banks’ claim that low business lending is down to a lack of demand. An alternative explanation, advanced by RBS, is that the low takeup highlights the banks’ lack of capital. With capital buffers thin, they do not want the risk of small business lending. The €213bn taken across both parts of the TLTRO will not stretch far. It is tiny in the context of the eurozone’s banks, the 10 largest of which have a combined balance sheet of more than €11tn. Some of the money taken will be used to pay off other types of central bank liquidity. But it could make a difference in some places. In the first part of the TLTRO, much of the money went to banks on the periphery, where deposit rates are high and business lending is low. According to Morgan Stanley, deposit rates in Greece are almost 200 basis points (and even Italy is over 100). In that context, taking money from the ECB at 15 basis points should help to cut the cost of loans and so stimulate volume. But as a whole, €130bn of TLTRO money will not turn the eurozone’s banks, which are shuffling around like seaside donkeys, into racehorses. And the trainer, Mr Draghi, is getting to the end of his tether. He should stop messing around with water, and dip into his box of steroids. It’s the one with “QE” in big letters on the lid. Lex on the web For notes on today’s breaking stories go to www.ft.com/lex

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Friday 12 December 2014

‘Ouch’ potential The prospect of enhanced volatility in 2015 RALPH ATKINS, PAGE 26

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Google

Glencore

German 10-year bond yield

Dollar index

Kospi

Shanghai Composite

Gold

Brent

1.25% $532.64

3.74% 295p

0bp 0.67%

0.47% 88.68

1.5% 1,917

0.5% 2,926

0.4% $1,226

23c $64.47

Google shuts news service in Spain Move signals tougher line in face of hostile legal and political environment in Europe THOMAS HALE — MADRID MURAD AHMED — LONDON

Google is shutting down its news service in Spain in one of the technology company’s most defiant responses to an increasingly hostile legal and political environment in Europe. The internet company said it was closing Google News in response to a law due to take effect in January that will force news aggregators to pay Spanish publishers a fee for content they link to. European publishing groups urged politicians not to back down from implementing the law, arguing that the Californian company’s drastic step was an attempt to whip up a

“public outcry” against the measure. The move is a sign that Google is taking a tougher line against the avalanche of legal challenges it has faced in Europe, indicating it may withdraw services from the region if the regulatory climate becomes too inhospitable. Late in November, the European Parliament voted for a motion calling on regulators to consider the break-up of the company. Though the move was symbolic, it was seen as an attempt to apply political pressure on the European Commission, which is considering an antitrust investigation into Google. On Wednesday night, Google announced that its news service in Spain — news.google.es — would cease to exist

on December 16. The rest of its operations in the country will be unaffected. “We’re incredibly sad to announce that, due to recent changes in Spanish law, we will be removing Spanish publishers from Google News and closing Google News in Spain,” said Richard Gingras, head of Google News. Google News is distinct from the company’s search engine. It uses an algorithm to filter and present news tailored in both language and content to the location of the user. As such, it primarily links to stories from publishers in the country in which the reader is based. Worldwide, Google sends about 10bn clicks each month to news publishers, with 1bn coming from Google News,

European publishing groups argued Google’s step was an attempt to whip up ‘public outcry’

according to the company. The Spanish law does not target search engines or social media websites, which also direct traffic to news websites. But it stands to affect news filtering services provided by other online groups, including Yahoo News. European publishers have been some of the most vocal proponents of restrictions on Google’s activities. Thomas Höppner, legal counsel to an informal coalition of European publishers, described Google’s decision as “a victory” that “shows the effectiveness of the Spanish law”. Additional reporting by Alex Barker and Duncan Robinson in Brussels Editorial comment page 10

Streamliner Europe aims for sleeker, safer trucks Big trucks on Europe’s roads could eventually look like this Concept S Aeroliner after new voluntary rules were agreed by EU governments to improve the environmental performance and safety features of the continent’s heavy transport vehicles. Designed by German truckmaker Man and trailer manufacturer Krone, the Concept S has the aerodynamic shape and lower panels that reduce both fuel consumption and the threat to pedestrians and cyclists of being dragged under or run over by the vehicle in a collision. Current brick-shaped lorries account for 25 per cent of road transport carbon dioxide emissions and almost 15 per cent of all fatal road collisions in Europe. But heavy lobbying by the truck industry won agreement that manufacturers will not be able to introduce new designs until 2022. They argued that the long lead time needed to produce new truck models required a delay in scrapping current mandatory regulations. European lorries tend to have short high cabins with blunt front ends to comply with restrictions on weight and length, unlike the long-nosed shapes typical of US trucks.

Short View James Mackintosh Neither a borrower nor a lender be, said Shakespeare. Europe’s banks seem to be listening to the counsel of his character Polonius, refusing to take up their allocation of long-term money from the European Central Bank. This in spite of the fact that the interest rate of 0.15 per cent is well below that available to some of the cash-strapped peripheral governments which are part-owners of the ECB. Yesterday banks took up just €130bn of a possible €317bn, short of what had been already quite pessimistic forecasts from analysts. For the ECB this represents failure for the first of its two big projects since the summer that are designed to put some vim into the eurozone economy and boost inflation back towards its 2 per cent target. There are still six more targeted longer-term refinancing operations (TLTROs), so the ECB might get lucky. Against that, banks must repay €256bn from the original 2011-12 LTROs by February 26, tightening money in the region. The ECB said last week it “intended” to expand its balance sheet by €1tn, but both TLTROs and the paltry amounts of bank assets being bought under its second project make the goal look wildly optimistic. The original LTROs were popular, but banks were able to take the money and use it to buy high-yielding peripheral government bonds. The Italian 1-year bond yielded almost 6 per cent when the first LTRO loans were made; it now yields 0.4 per cent. Worse, with TLTROs, after a year banks are supposed to use the money to lend to small businesses, requiring capital they do not have to spare. The apparent failure of the TLTROs should make the ECB more likely to buy government bonds directly. But Germany’s objections remain unchanged; as Polonius put it, “borrowing dulls the edge of husbandry”. In today’s jargon, there is moral hazard in financing Italy. When the ECB meets next month, Greece may be on the brink of an election. With hard-left Syriza leading in the polls, it would be hard for the ECB to consider buying Greek bonds — yet doubly contentious to buy just non-Greek eurozone bonds. “Loan oft loses both itself and friend,” Polonius said. Friendship is already stretched between Europe’s north and south. Will the money be lost, too?

Free money out of favour Three-year LTROs and TLTROs (€bn)

Source: ECB

Industry wins delay page 18 [email protected]

Barclays and Deutsche Bank probed over suspected use of forex algorithms GINA CHON — WASHINGTON MARTIN ARNOLD — LONDON

Are the clouds beginning to part for Microsoft? Microsoft has become the biggest seller of cloud services to business customers, ahead of IBM and Oracle. It is a sign that under chief executive Satya Nadella, the world’s biggest software company is finally making headway as it looks beyond the PC era. Analysis i PAGE 17

New York’s top banking regulator is investigating whether Barclays and Deutsche Bank used algorithms to manipulate foreign exchange rates, which could raise the fines they face, a person familiar with the probe said. The state’s Department of Financial Services is reviewing whether the use of algorithms in bank currency trading suggests a systemic problem at the lenders, as opposed to wrongdoing by several rogue traders, the person said. If the algorithms are seen as a bankwide issue, the DFS could seek bigger penalties, the person added. The probe is one of the reasons why the DFS, led by

Benjamin Lawsky, declined to take part in a broad forex settlement with banks. In November, UBS, Citigroup, JPMorgan Chase, HSBC, Royal Bank of Scotland and Bank of America were fined more than $4bn for their role in a forex rate-rigging scandal. The UK’s Financial Conduct Authority and the US’s Commodity Futures Trading Commission were part of that settlement. But the US Department of Justice and the DFS were not and their investigations are continuing. The DoJ’s probe includes the six banks that were part of the broad settlement, and the investigation is expected to result in large fines and criminal findings. The DFS is investigating about a dozen banks. Deutsche said it had “received

requests for information from regulatory authorities that are investigating trading in the foreign exchange market. The bank is co-operating with those investigations, and will take disciplinary action with regards to individuals if merited.” Barclays declined to comment. The UK bank dropped out of the wider settlement reached in November at the last minute when it learnt that the DFS would not participate in that agreement. It is unclear whether other regulators are aware of the algorithms. They were discovered through the DFS’s bank monitoring system that it has set up at Barclays and Deutsche, the person familiar with the probe said.

Companies / Sectors / People Companies

Cisco..................................................................3

Hewlett-Packard.....................................24

Oi.......................................................................14

UBS..................................................................15

People

AOL....................................................................3

Citigroup.................................................15,18

IBM.....................................................................9

Philip Morris International................24

Volvo...............................................................18

Baker, Gerry................................................16

AbbVie...........................................................25

ConocoPhillips...........................................16

IGas..................................................................25

Qatar Investment Authority............20

Walgreens...................................................20

Ballmer, Steve............................................17

Airbus.............................................................16

Daily Mail.....................................................16

IOMart.....................................................25,25

Quindell.........................................................25

Washington Post.....................................16

Bloomberg, Michael...............................16

Alliance Boots..........................................20

Delta Air Lines..........................................16

JPMorgan Chase................................15,18

Renault..........................................................18

Wintek......................................................14,17

Costa, Ken...................................................20

Royal Bank of Scotland.......................15

Xiaomi............................................................18

Gingras, Richard.......................................15

Sectors

Lawsky, Benjamin....................................15

Aerospace & Defence...........................16

Lewis, Will....................................................16

Banks..................................................15,18,24

Micklethwait, John..................................16

Food & Drug..............................................16

Nadella, Satya............................................17

Gen Financial............................................24

Rashbass, Andrew..................................16

Amazon...........................................................3 America Movil...........................................14 Apple...........................................4,9,14,17,18

Deutsche Bank..........................................15 Dixons .............................................................9 eBay...................................................................3

Largan............................................................14 Legal & General.......................................25 London Metal Exchange....................24 Lufthansa.......................................................3

Shire................................................................25

Eskom...............................................................3 Barclays.........................................................15 Burberry..........................................................9 CNN.................................................................16

Salesforce....................................................24 Samsung.................................................14,18

Ericsson...................................................18,18 Bank of America.................................15,18

SHV............................................................16,16

European Central Bank....................1,25 Flipkart...........................................................18

Merck .............................................................21 Microsoft...................................................3,17

Songbird Estates....................................20 TIM Participacoes...................................14 TPK..................................................................14

Ind Transport.............................................15

Skinner, James.........................................20

GlaxoSmithKline.......................................21

NML Capital...............................................24

TSMC..............................................................14

Media.........................................................15,16

Thompson, Mark......................................16

Glencore.......................................................25

Netease.........................................................18

Telecom Italia............................................14

Mobile & Telecoms................................18

Turness, Deborah....................................16

Cargill..............................................................16

Goldman Sachs .......................................18

New York Times......................................16

Telefónica....................................................14

Real Estate.................................................20

Vázquez, Jorge........................................24

Carmignac...................................................24

Google........................................................9,15

Nissan...............................................................4

The Guardian.............................................16

Technology HW & Equ..................17,18

Wintour, Anna...........................................16

Catcher ........................................................14

HSBC...............................................................15

Nutreco..........................................................16

Toshiba...........................................................4

Travel & Leisure......................................16

Yan, Tang.....................................................18

Campbell Soup.........................................24 Canon...............................................................4

General Motors........................................24

© The Financial Times Limited 2014

Morgan Stanley........................................18

Week 50

The low take-up of TLTROs is a failure of the first of the ECB’s two projects designed to put some vim into the eurozone economy

★

16

FINANCIAL TIMES

Friday 12 December 2014

COMPANIES INSIDE BUSINESS

Commodities

Cargill to launch solo bid for Nutreco US trader asks for access to Dutch group’s books after dropping Permira The battle for Nutreco intensified yesterday after US agricultural trader Cargill announced that it would make a standalone bid for the Dutch fish and animal feed group. The move by the US commodities trading group comes after Nutreco agreed a €3bn offer from Dutch conglomerate SHV at €44.50 a share. Nutreco shares jumped almost 5 per cent to €46.90 on anticipation of a higher Cargill bid. The growth in demand for meat and fish as the world’s

population becomes richer has made Nutreco an attractive acquisition target. Nutreco had previously dismissed a joint offer made by Cargill and private equity group Permira on the grounds that it would lead to the break-up of the company. Nutreco also said the joint offer lacked details and refused to give the two companies access to its books in order to conduct due diligence. By working alone, privately held Cargill aims to buy Nutreco as a whole, removing the issue about a potential break-up. “After extensive study, we decided to continue on a standalone basis, and consider an offer for the whole of Nutreco,” Cargill said. “We believe we would be very good stewards of the Nutreco business in the interest of all stakeholders.” The agreement between Nutreco and

Aerospace

Travel & leisure

EMIKO TERAZONO — LONDON

SHV, a 118-year-old gas to retail conglomerate run by the Fentener van Vlissingen family, requires any counter bid to be 8 per cent higher than the existing offer of €44.50 a share. This means that Cargill will have to offer at least €48.06 a share. Cargill did not provide a value for its potential offer, saying that it needed access to Nutreco’s books before it could attach a price. “In order to understand whether Cargill can arrive at a proposition that would be attractive to all stakeholders, we have asked Nutreco to provide us access to due diligence,” it said. But Nutreco said Cargill’s communication, understood to have been made on Wednesday, was insufficient for the Dutch group to offer access to its books. It said: “We have not received a con-

€3bn Offer from Dutch conglomerate SHV that was agreed at €44.50 a share

€46.90 The Nutreco share price jumped 5% on anticipation of a Cargill bid

crete, written proposal that is likely to qualify or evolve to a competing offer. There is no doubt that it is clear to Cargill what will constitute a potential competing offer and what they need to do if they want to make a proposal that allows Nutreco to potentially engage.” Shareholders have been calling for Nutreco to open its books to Cargill. APG, a Dutch pension fund holding about 10 per cent of Nutreco said yesterday: “We expect that interested parties receive a fair and equal opportunity to bring out a substantiated offer.” Paul Koster, director of the VEB, the influential Dutch retail shareholders’ association, said: “This only increases the pressure on Nutreco to look seriously on how they are going to take this deal further.”

Airbus plays down fears over future of the A380 MICHAEL STOTHARD — PARIS

Shares in Airbus fell for a second day as management scrambled to reassure investors about the future of its superjumbo A380 project and its medium- to long-term financial prospects. The aerospace and defence group’s shares fell 10 per cent on Wednesday after it reined in earnings expectations for 2016 and Harald Wilhelm, chief financial officer, suggested Airbus could “discontinue” the A380 as early as 2018. Mr Wilhelm told analysts in London, without elaborating further, that Airbus would break even on the A380 through 2018, “if we would do something on the product, or even if we would discontinue the product”. Yesterday, following an angry reaction from some airline customers, Airbus sought to play down concerns that the A380 would be abandoned, instead emphasising that improving and modifying the superjumbo was the most likely scenario. The largest customer is Dubai-based Emirates Airline. Fabrice Brégier, who leads Airbus’ passenger jet division, said the development of a new engine as well as a stretch variant would happen “one day,” asking “where is the problem with the A380?” The four-engine A380 entered service in 2007 and since then has struggled to generate large sales. It has long prompted internal debate at Airbus about the future of the programme. As shares in Airbus fell 4 per cent yesterday, Airbus also sought to reassure investors about profitability, playing down concerns about cuts to production rates amid the transition from the A330 wide-body jet to a new version, called the A330 Neo. “Yes, there is a risk the [production] rate will come down, but this is not the point,” said Mr Wilhelm. “The point is that this is the way forward for the [A330] Neo that will then ramp up and that will provide a clear bridge into profitability.”

Falling fuel price set to boost Delta’s fortunes ROBERT WRIGHT — NEW YORK

Delta Air Lines expects lower fuel prices to produce an annual net cost benefit of $1.7bn, the company said yesterday, in the latest sign of how falling fuel prices are boosting the fortunes of big US carriers. Delta gave the estimate at an investor day in New York at which the company also said it expected pre-tax profit of $4.5bn in 2014, up $1.9bn compared with last year. The company’s shares surged almost 5 per cent on the announcements, to $48.38. Delta has taken an unusual approach to managing fuel prices by purchasing the Trainer oil refinery next to Philadelphia airport. Delta has also persevered with significantly older — and hence more fuelhungry — aircraft than other US airlines, betting that it can maintain the passenger jets better than competitors and therefore save on capital spending.

Strong path: Delta Air Lines’ decision to buy an oil refinery means it is likely to profit from this unusual approach to managing prices — Paul Sancya/AP

Paul Jacobson, chief financial officer, claimed both strategies were proving successful. The refinery — which has lost money heavily during periods after Delta bought it from ConocoPhillips in 2012 — was expected to contribute $70m to operating profit in the fourth quarter, and the company was successfully managing expenses. “I think we’re on a strong path,” Mr Jacobson said. “We’ve created a lot of value. We have a lot more value to create.” Delta and other US airlines have enjoyed sharply rebounding profitability in recent years as a series of mergers have reduced cut-throat competition, and the US economic recovery has encouraged travel. Delta said its cost per available seat mile excluding fuel expenses would rise by only 1 per cent for the last three months of 2014 compared with the fourth quarter last year. “The cost performance has been a

really terrific performance over the last couple of years,” Mr Jacobson said. However, Delta would increase its overall seating capacity by about 3.5 per cent in the fourth quarter compared with the same period last year. “We’re not so focused on cost discipline that we miss out on investing in the product,” Mr Jacobson said. The US airline industry still had considerable opportunities to improve its profitability given recent consolidation, he added. “We talk a lot about still being in the relative infancy of consolidation, learning to be comfortable in our own skin, learning to appreciate the economies of scale that this industry has never seen before,” Mr Jacobson said. Delta estimated that its distinctive fuel strategy should gain it an 8c to 10c per gallon advantage over competitors. It expected to pay an average $2.88 per gallon this year, against $2.97 for the wider industry.

Legal Notices

Airlines More news and analysis on airlines at FT.com/ travel-leisure

MEDIA

Matthew Garrahan

City that never sleeps wakes up to British media’s global reach

I

t is 50 years since The Beatles-led assault on the US pop charts was dubbed the “British invasion”, and three decades have passed since Colin Welland accepted his screenplay Oscar for Chariots of Fire with the rallying cry “The British are coming!” A group of Britons is once again leading a charge on a corner of US media but this time they have crossed the Atlantic to colonise the upper echelons of the news business, rather than music or movies. The latest member of this club is John Micklethwait, the editor of the Economist, who was hired by Michael Bloomberg this week to replace Matt Winkler as the editor-in-chief of Bloomberg News. Mr Micklethwait starts in New York early next year, where he will take over from one of journalism’s bestknown figures, overseeing 2,500 journalists in a deeppocketed news operation that is among the largest in the world. It will be a step change from his role at The Economist but if he finds himself pining for some British company, he will not have to look very far. Mark Thompson, the former director-general of the BBC, is a few blocks away in Manhattan at the New York Times headquarters on eighth Avenue, where he serves as chief executive. Closer still to Bloomberg’s Madison Avenue offices, is the Wall Street Journal, where Gerry Baker, a former Financial Times columnist, is editor. Mr Baker’s boss, Will Lewis, the chief executive of Dow Jones, is also British, as is Anna Wintour, editor in chief of Vogue, and Joanna Coles, the editor of Cosmopolitan magazine. Andrew Rashbass, the chief executive of Reuters (and a former chief executive of the Economist) is also a Brit. Though he is based in London, he oversees a huge newsroom in Times Square, while other stateside expats include Deborah Turness, the former editor of ITV News, who now heads NBC News. What explains the cluster of Britons at the top of USfocused media organisations? One factor could be the British newspaper market, where many of these journalists and executives cut their teeth. Despite the challenges facing print titles around the world, the UK newspaper sector remains vibrant. Some 20 daily and Sunday newspapers continue to The companies reach millions of readers in Britain, as they have done for searching for decades. The phone-hacking this digital elixir scandal dented confidence in Fleet Street and drew the are betting that world’s attention to sloppy UK-born standards and practices and, in some cases, criminal journalists may behaviour. But competition have the answers is still fierce. UK journalism has in they need recent years looked beyond its borders for growth. Until now, that has not been as big a concern for newspapers and television networks based in the US. The Guardian and the Daily Mail each launched web operations tailored for global readers. Now both online titles are challenging the New York Times, CNN and Washington Post as the world’s most viewed news brands. They are also making their presence felt stateside: the Daily Mail’s online celebrity coverage regularly trumps its US tabloid competition while the Guardian this year won a Pulitzer Prize, the highest honour in American journalism, for its coverage of the Edward Snowden leaks. US-based news operations have belatedly realised that they too must look abroad. Last year the International Herald Tribune was rebranded by its owner, the New York Times, in one of Mr Thompson’s first moves as chief executive. The paper took the Times’ name as part of a move towards what the company called “a global monobrand”. More importantly, US news groups also realise that their future depends on a winning online strategy. The companies searching for this digital elixir are betting that UKborn journalists may have the answers they need: at the BBC, Mr Thompson launched the popular iPlayer — a success his board at the New York Times would no doubt love him to replicate. Mr Micklethwait, meanwhile, has won plaudits for the digital initiatives he introduced at the Economist, which is part owned by the Financial Times Group. Mr Bloomberg said his new hire had done “an exceptional job” leading the magazine into the “digital age”: the magazine has 1.6m print subscribers, including 164,000 digital-only subscribers. Maybe the trend won’t last and the British news invasion will end as soon as it began. I am not so sure. They may not turn out to be the news equivalent of The Beatles. But if the big US news operations are looking for a coherent digital strategy and international growth, they could clearly do a lot worse than recruiting across the Atlantic. [email protected]

Cars

Daimler puts €2.5bn in pension CHRIS BRYANT — FRANKFURT

Daimler is making a €2.5bn contribution to its company pension fund to reduce underfunding caused by low interest rates. “With this allocation to the German pension funds we want to give our employees more security for their future planning. At the same time we are investing in the future of the company,” Dieter Zetsche, chief executive, said. The announcement yesterday resolved analysts’ queries over what Daimler planned to do with its large cash pile, which stood at €17.9bn at the

end of September. Strong sales of Mercedes-Benz cars plus asset sales have lifted Daimler cash reserves more than 40 per cent compared with a year ago. The company’s coffers were swelled further in the fourth quarter by the sale of its 4 per cent stake in electric car company Tesla, which resulted in a €600m cash inflow. Daimler ruled out making large acquisitions when it reported third-quarter earnings in October. The top-up underscores the difficulties that many companies are facing in meeting pension obligations in the current interest rate environment. Additional reporting by Josephine Cumbo

★

Friday 12 December 2014

17

FINANCIAL TIMES

COMPANIES

Risks high as Microsoft passes cloud milestone World’s biggest software company makes up for lost time with a business overhaul to take it beyond the PC era RICHARD WATERS — SAN FRANCISCO

Microsoft has just passed a milestone in its business overhaul for the cloud computing age. As this year closes, it has become the biggest seller of cloud services to business customers, vaulting past start-ups such as Salesforce.com and outpacing IBM and Oracle. While cloud services account for less than 5 per cent of revenues, the milestone is a sign that the world’s biggest software company is finally making headway as it looks beyond the PC era. But the risks are high. Microsoft’s years of dominance relied on tying much of the tech world to its Windows PC operating system. The business model built on Windows is now being picked apart — and the person doing the picking is none other than Satya Nadella, the company’s recently installed chief executive. “It’s not easy to let go of your proprietary roots,” says Rick Sherlund, software analyst at Nomura Securities. “We don’t know how much this will hurt yet. But he has to do it.” Wall Street has chosen to look on the bright side. After more than a decade stuck in a narrow range, Microsoft’s stock price has risen nearly 50 per cent in the 16 months since former chief executive Steve Ballmer announced he would step aside. As the company’s biggest individual shareholder Mr Ballmer — who was blamed by Microsoft’s board for missing out in the smartphone and tablet markets — has made more than $5bn from the bounce. To reinforce the shift from Windows and lay the foundation for a new Microsoft, Mr Nadella has taken several steps to open up its technology: a strategy that once would have been perceived as heretical by company insiders. They include releasing a free version of Office, the company’s biggest moneyearner, to users of Apple’s iPad in order to prevent them defecting to rival services. Since retail consumers make up only a small part of the Office business and the software has largely missed the tablet revolution, giving the tablet software away was a mainly defensive gesture to protect a vulnerable flank. As such, it echoed Mr Nadella’s previous announcement that Windows would be free for smartphones — another market where the software was largely absent. But the symbolism is striking. In another reversal, Microsoft last month made a core piece of the technology on which its broader ecosystem is based available to other developers. Under Mr Nadella, it has negotiated integration deals with rival cloud companies including Salesforce and Dropbox. The goal is to stimulate greater use of Microsoft’s online services, even if that reduces demand for its other software. Mr Nadella is under pressure to show that he can back up moves like these, which are bringing an end to the closed technology world Microsoft once inhabited, with some real product innovation. Stepping away from the safety of its eroding PC monopoly is forcing deeper cultural change as the company faces up to demands of competing head-on with the likes of Google, Apple and Amazon. Microsoft’s deepest inroads into the cloud have come with Office 365, the cloud-based version of the productivity software. “I’ve been impressed by how rapidly they’ve been able to change their business model since Satya took over,” says Brett Taylor, a former Facebook chief technology officer and head of Quip, one of several start-ups hoping to reinvent productivity software for the cloud and mobile era. But rivals like Mr Taylor argue that even offering Office for free will not help Microsoft make up for lost time. The Office approach to productivity, which puts documents at the centre, does not suit the mobile workforce, he says. Instead, collaboration between workers

Silver lining

Reversal of fortunes Silverlight U-turn cuts the ties with Windows

Cloud services sales 2014 Microsoft

$5.6bn

Salesforce.com

$5.2bn

Revenues (% share)

Armed police surrounded the plants in the city of Dongguan as workers collected final pay this week, while suppliers demonstrated in front of the factories. Wintek declined to comment. The company sought insolvency protection in October, filing in Taiwan for a restructuring of more than NT30bn ($961m) in debts owed to local and mainland lenders and suppliers. Wintek

(estimate)

2012

2016 (forecast)

Office 365 and other cloud services

Consumer and devices*

Microsoft share price ($)

Phone hardware

6.2 Total revenue 43.7

$74bn

Rest of commercial licensing

39.8

Consumer and devices*

15.1

50

Office 365 and other cloud services

45 40

9.2 Rest of commercial licensing

Total revenue

$101bn 35.9

35 30

35.9

25 Jan

*ex phone hardware FT graphic. Sources: Nomura; Thomson Reuters Datastream

is being achieved using communicationbased tools that “push” information to people when they need it. Acquisitions intended to make Microsoft more relevant, like the Skype internet calling service and Yammer enterprise social network, have “sunk without a trace”, says Michael Cusumano, a professor at the Massachusetts Institute of Technology. Microsoft is also moving faster as it tries to overhaul its software, after years of being plagued with sluggish development. Changes to Office announced only months ago are already appearing in the product, says Rob Helm, an analyst at Directions on Microsoft, an independent research firm. “Someone’s really goosed it up,” he says. With new ideas like its experimental “Office social graph”, Microsoft is also

‘I’ve been impressed by how rapidly [Microsoft has] been able to change [its] business model’ trying to find ways to “identify relevant information and push it to you”, adds Mr Cusumano — for instance by automatically sending notes ahead of a meeting based on things like the subject matter and who will be present. Microsoft’s second push into the cloud involves creating a technology platform on which other services can run. While Mr Nadella was head of the company’s cloud business, he took a critical decision to extend this platform, repositioning it to compete with industry leader Amazon in selling things such as raw computing power and storage

capacity. This so-called “infrastructure as a service” business has been the scene of a vicious price war, as Google and Amazon have driven down prices. Mr Nadella, for his part, seems happy to go along for the ride, in the hope Microsoft will be one of only a few companies that can stay the distance. He suggests profits will be made in the “platform as a service” business that rides on top of the infrastructure. Wall Street’s fears that overall profit margins from the cloud would be far lower than the traditional software business have receded somewhat as the business has started to reach larger scale, says Mr Sherlund at Nomura. The shift to the cloud is likely to take years. Only about 2m of the 8m servers sold each year are bought by cloud companies, Mr Nadella says. The rest end up inside corporate data centres, many of them running Microsoft software. The company’s main advantage, he adds, will be having the scale and range of technologies to support the messy IT needs of modern corporations, which need to run a range of applications for workforces spread around the world using a mix of the cloud and traditional data centres. That predication suggests that Microsoft’s future looks much like IBM’s did at the end of the mainframe era. While the “post-PC” age has arrived, software for PCs and servers built with PC technology will remain a key ingredient of IT systems, just as mainframes are still estimated to account for more than a third of IBM’s profits. But even if this guarantees Microsoft’s longevity, its new CEO has made clear that he believes growth — and long-term relevance in the tech world — lies in a more decisive move to the cloud.

Apple supplier Wintek shuts China plants Taiwanese group Wintek, formerly a major supplier of touchscreens for Apple’s iPhone and iPad, has shuttered two plants in southern China and axed 7,000 jobs, leaving unpaid suppliers to chase debts of Rmb230m ($37m).

$4.7bn

Satya Nadella, Microsoft’s recently installed chief

Technology

CHARLES CLOVER — BEIJING

Four years ago, Microsoft’s decision to kill off its Silverlight technology highlighted a familiar “Windows first” dynamic inside the company. Silverlight had been developed to compete with Adobe’s Flash by enabling developers to write applications that run on any software platform, not just Windows. But a power battle in the company led to it being sidelined, said Jeffrey Hammond, an analyst at Forrester Research. “The Windows group killed [Silverlight] deader than a doornail,” he said. It was a notorious example of Microsoft’s “Windows tax”, the price

Amazon Web Services

reported a loss of NT$10bn for 2013 and a NT$3bn loss in the first half this year. The Taipei-listed company was once one of the main suppliers for Apple, but placed a bet that failed after Apple selected a rival touchscreen in late 2012. The episode represents a cautionary tale for high-tech manufacturers in southern China who aspire to being an official Apple supplier. While Wintek was the largest supplier of touchscreens for the iPhone 4, Apple switched to a different technology in 2012 for its iPhone 5, eliminating much of Apple’s need for Wintek’s technology. In 2013, Apple then opted for film touch panels in its iPads, rather than the glass touch panels made by Wintek.

Apple still lists a Wintek facility in Suzhou, near Shanghai, as a supplier, but not any of its Dongguan plants. Jerry Chen from Shenzhen Laibao Hitech, another touchscreen maker, said, such incidents are common “although it did come a bit suddenly with Wintek”. “It mostly has to do with the growing competition and lower margins. Before there used to be two to three companies sharing a single order and now there may be as many as 10,” he said. But he said the plant closures did not necessarily mean Wintek was obsolete, as it still made the leading technology in “on glass solution” (OGS) touchscreens. Wintek’s shares were suspended in mid-November at NT$1.83.

2013

2014

Dec

other divisions in the company have historically paid to protect the primacy of the operating system. Last month, under Satya Nadella, Microsoft effectively reversed the Silverlight move. It released a software framework called .Net — used by millions of developers who write applications that run on its software platforms — to the open source world, thereby cutting the inseparable bond with Windows. Retaining the loyalty of developers is essential to Microsoft. That could make the decision to set .Net free a key step in the shift to cloud computing, Mr Hammond said.

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Friday 12 December 2014

COMPANIES Industrial transport

Mobile & telecoms

Industry wins delay to EU truck shake-up

India sales ban poses threat to Xiaomi expansion

New rules spell end of road for environmentally inefficient vehicles ANDY SHARMAN — LONDON

European Union governments have agreed new rules that should bring an end to the brick-shaped trucks that campaign groups say are environmentally inefficient and endanger other road users. But fierce industry lobbying put back implementation of the measures by five years, including a three-year moratorium, despite the rules being voluntary.

Current regulations on truck weights and dimensions restrict the length of heavy goods vehicles. To maximise cargo space truckmakers design short cabins with drivers in towering cockpits over the engine and front axle. This creates dangerous blind spots and blunt front ends, critics say, increasing the risk of fatal accidents with pedestrians and cyclists. Trucks are twice as deadly as other vehicles in countries such as the UK, France and Sweden, according to the European Transport Safety Council, and heavy goods vehicles accounted for 14 per cent of all fatal collisions in Europe in 2011. The new rules will allow the front cab-

ins to be 80cm-90cm longer, bringing European trucks closer to their US counterparts — which have extended bonnets and tend to be about 1.5m longer. This should lead to curved, more Brick-shaped trucks have blind spots that increase the risk of fatal accidents, critics say

streamlined noses, which campaigners say would improve pedestrian protection and increase the driver’s field of view by 50 per cent.

The new rules will also allow for aerodynamic flaps at the rear of the vehicle, which are used in the US and guide airflow around the vehicle. While trucks make up only 3 per cent of vehicles in Europe, they account for 25 per cent of road transport carbon dioxide emissions, according to Transport & Environment, a think-tank. “This is a big thing that’s going to happen to trucks — it’s a fundamental change to an industry that’s fairly conservative,” said William Todts, senior policy officer at T&E. Brussels had planned to phase in the rules from 2017. But France and Sweden won a delay to 2022. The two countries

— home to truckmakers Renault and Volvo, which only recently launched new model ranges — had been seeking to delay the rules until 2025. Member states will meet later this month to formally approve the rules but finalisation of the legislation will not come until 2019, followed by the threeyear moratorium. Acea, the European automotive manufacturers’ trade body, said that while the industry was “fully committed to improving fuel efficiency and safety”, the three-year lead time — from finalising the rules in 2019 to implementation in 2022 — would still be “challenging” for truckmakers to meet.

Banks. Capital buffers

Fed’s push for safety tests the business model at US banks Drastic changes might be needed to earn equity returns that satisfy shareholders TOM BRAITHWAITE — NEW YORK

Jamie Dimon has long laid claim to a “fortress balance sheet”. Even before he ran JPMorgan Chase, as chief executive of Bank One in Chicago in 2002, he bragged about capital. “We talk consistently and all the time about this fortress balance sheet, and we really mean it,” he said later, after becoming chief of JPMorgan. “And we call it a strategic imperative, not just a philosophical position. “We are trying always to be very forward-looking and maintain a strong balance sheet,” he said. “We were getting this company’s balance sheet prepared for a tough time.” The tough time came, JPMorgan survived, albeit with the help of Federal Reserve emergency measures, and for a while Mr Dimon was lauded as the banker who got it right. But now JPMorgan has a $22bn capital shortfall, according to a new assessment by the Fed, which has been steadily ratcheting up its capital requirements since the financial crisis. The question for all US banks is whether the Fed’s drive for higher capital has further to run and whether they will have to change their business models drastically to earn a return on equity that satisfies shareholders. According to the banks — though not

all of the capital hawks — regulators, particularly in the US, have come a long way already in increasing the lossabsorbing capacity of the system. The international Basel II rules required banks to hold 2 per cent of common equity against risk-weighted assets. The new Basel III standard announced in 2010 requires a 7 per cent capital ratio by 2019. The tightening was more severe than that implies because the “risk weights”, which oblige banks to hold more capital against the riskiest assets, were also made tougher. In 2011, the institutions deemed most systemically important were told to go further — holding an additional 2.5 per cent in common equity. This week, the Fed announced that the biggest US institutions will have to hold even more common equity, taking JPMorgan to 11.5 per cent, Citigroup to 10.5 per cent and Morgan Stanley, Goldman Sachs and Bank of America to 9.5 per cent. There could still be more to come. The one known unknown, which the Fed has acknowledged as such, is whether banks will be forced to maintain these capital levels during annual stress tests, which subject balance sheets to a hypothetical economic disaster and see how they fare. If JPMorgan is expected to maintain an 11.5 per cent capital ratio during a financial crisis, then it will have to add even more to its peacetime levels. Banks which look to have already reached the new minimum levels might yet be caught short. It would also bring the US closer to the much higher levels of capital demanded by campaigners such as Sherrod Brown,

‘If they didn’t have the safety nets that they do . . . they couldn’t live’

the Democratic senator, Tom Hoenig, the vice-chairman of the Federal Deposit Insurance Corporation, and Anat Admati, the Stanford University professor and co-author of The Bankers’ New Clothes, a book demanding higher capital levels. The new rules raise questions about whether business models will have to change to adapt. Most banks are barely earning their cost of capital, estimated at 10-12 per cent; some, such as Citi and Morgan Stanley, are not even there yet. Adding more equity depresses ROE and makes it more challenging to satisfy investors. If banks become smaller and simpler they should benefit from a smaller capital requirement. But JPMorgan is not

The biggest US institutions will have to hold even more common equity, taking JPMorgan to 11.5 per cent Spencer Platt/Getty Images

willing to yield just yet. “We would clearly like to be able to reduce the surcharge,” said Marianne Lake, chief financial officer, on Wednesday. “And if that is possible, we will do it, but we are not looking to do that at the cost of making more than surgical changes to our business strategy.” Ms Admati said: “It’s a feature, not a bug, if they end up simplifying their structures under pressure from investors.” She argued that it is only the implicit backing of the government that allows banks to operate with so much debt in the first place. “Companies in this state of funding, with these kind of balance sheets, if they didn’t have the safety nets that they do . . . they couldn’t live.”

JAMES CRABTREE — MUMBAI CHARLES CLOVER — BEIJING

A patent dispute has dealt a blow to Xiaomi’s international expansion, leaving the fast-growing Chinese smartphone maker facing a temporary ban on sales in India and further pressure on margins. Xiaomi, anointed a valuation in excess of $40bn at its latest fundraising in November, is keen to replicate its popularity in China into other major emerging markets. In April it unveiled plans to expand into as many as 10 foreign markets. However, a Delhi High Court case suggests that this march abroad may also open it to more patent disputes, with companies demanding it pay royalties — something that rivals are less keen to pursue in China where claims are harder to press. Such payments would, in turn, eat into margins or drive up handset prices. In a ruling on a patent dispute with technology group Ericsson, the court ordered Xiaomi to suspend sales until February, pending a further hearing relating to its dispute with the Swedish company. Wednesday’s ruling stated that Xiaomi was “restrained from manufacturing, assembling, importing, selling or advertising” its products in India pending a further hearing, while India’s customs authorities were “directed not to allow the import” of mobiles and other products that may infringe Ericsson’s patents. Without a trove of its own patents, manufacturers such as Xiaomi could ultimately see their costs inflated by 5-20 per cent due to licensing fees, according to some experts. Xiaomi says it acquired 1,141 patents last year, a number considered unimpressive in the tech industry. Experts said this appeared to be the first patent litigation targeting Xiaomi since it outlined plans to launch into up to 10 foreign markets. “It looks like Xiaomi is experiencing a bit of culture shock in India,” said Wang Yanhui, secretary-general of the Mobile Phone China Alliance, an industry lobbying group. He said Xiaomi was not the first Chinese smartphone maker to be sued in India, however, it was the first time imports had been halted. The Delhi court ruling is likely to raise new concerns about possible intellectual property challenges affecting other Chinese smartphone and device makers — a group that includes Huawei, ZTE and Lenovo, analysts said. Manu Jain, head of Xiaomi in India, said the group had not received official notification of the ruling from the court, but that its legal team was “evaluating the situation”.

Technology

Momo dating app founder accused of stealing ideas CHARLES CLOVER — BEIJING

Chinese internet group Netease has accused a former employee, and now rival, of misconduct and corruption, just days before his new company is poised to launch a $230m initial public offering on Nasdaq. Netease, the gaming group that operates World of Warcraft in China, accused Tang Yan, chief executive and founder of dating app Momo, of stealing ideas and technology during his eight years at the company. In a move that could throw a spanner in Momo’s forthcoming IPO, New Yorklisted Netease, which has a market capitalisation of $13bn, claimed that Mr Tang “took advantage of his post to acquire various information and technological resources to help establish Momo”. Launched in 2011 while Mr Tang was still at Netease, Momo is a dating app similar to Tinder, and has become one of the hottest mobile phone apps in China. The app claims it has 180.3m registered accounts, 60.2m monthly active users, and 2.3m paying membership subscribers, according to the IPO filing as of September 2014. One of its investors is ecommerce group Alibaba, which has been trying without success to launch a smartphone chat and instant messenger to compete with WeChat, owned by rival Tencent. The timing of the statement by Netease appeared designed to delay or scupper the IPO — characteristics of the scorched earth tactics common in the competitive Chinese internet market. Mr Tang launched Momo in August

2011, a month before he left Netease, where he worked in a variety of management jobs. Netease also claimed Mr Tang awarded lucrative contracts to a company founded by his wife during that period. Mr Tang “delivered commercial benefits that are worth more than Rmb1m [$160m] to a Beijing advertising company founded by his wife, Zhang Sichuan — conduct that gave rise to suspicion of non-governmental corruption,” Netease said. In a filing to US securities regulators, Momo said Mr Tang would “vigorously defend himself” against the allegations,

$230m

180.3m

Forecast value of Momo’s initial public offering on Nasdaq

The number of registered accounts Momo says it has

but refused to comment further, citing a quiet period ahead of the IPO. The company did, however, say Mr Tang may address the Netease allegations in the US. Momo meaning “unacquainted” in Chinese, may face other legal challenges for the use of the name. Another Chinese company has said it intends to sue Momo. Hangzhou Momo Wedding Service Company, which describes itself as a web-based business aimed at Chinese parents trying to marry off their single offspring, said in November that the smartphone app had stolen its name. The company is seeking Rmb11m in damages and exclusive use of the brand.

Friday 12 December 2014

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Friday 12 December 2014

COMPANIES Food & drug retailers

Pessina steps in as chief of Walgreens Boots Alliance Billionaire to take interim job as Wasson retirement reverses post-merger plans JOHN AGLIONBY — LONDON

Stefano Pessina, the billionaire executive chairman of Alliance Boots and a board member of Walgreens, will initially serve as interim chief executive when the two pharmacy chains merge but still plans to return to a strategy role. Boots declined to give new specifics but pointed to an earlier announcement that Mr Pessina, 73, will serve as executive vice-chairman of the combined USbased company. He will be responsible for strategy and dealmaking and chair a new board-level strategy committee. Ornella Barra, Mr Pessina’s long-term partner and chief executive of wholesale

and brands at Alliance Boots, is still set to become executive vice-president of Walgreens Boots Alliance, as the combined company will be known. Ms Barra will also serve as president and chief executive of global wholesale and international retail. Walgreens announced on Wednesday that Mr Pessina would temporarily head the combined group because Greg Wasson, Walgreens’ president and chief executive, plans to retire after the merger is completed. The move is a reversal of earlier plans to have Mr Wasson run the combined group. Walgreens will acquire the 55 per cent of Boots that it does not already own as early as February 2015 following a Walgreens shareholder vote on December 29. James Skinner, Walgreens chairman, will also take on executive duties during

Real estate

Qataris appoint ex-Lazard banker to Songbird board CLAER BARRETT, KATE ALLEN AND ARASH MASSOUDI

Ken Costa, the City grandee and former Lazard and UBS banker, has been appointed to the board of Songbird Estates to represent the Qatari sovereign wealth fund that is attempting to wrestle control of Canary Wharf. Songbird owns 70 per cent of Canary Wharf Group, while Canadian property investors Brookfield own 22 per cent. The Qataris have teamed up with Brookfield in an attempt to gain control of Songbird. The Qatar Investment Authority is Songbird’s biggest shareholder, with a 28.6 per cent stake. Other major shareholders include New York magnate Simon Glick, the China Investment Corp and Morgan Stanley. Songbird has a free float of 21 per cent of its shares. Songbird said yesterday that Mr Costa had been appointed as a board director with immediate effect, filling the vacancy left by Khalifa Al-Kuwari when he stepped down in September. Mr Costa was originally nominated for his directorship in early November at around the time when the QIA and Brookfield made their first approach to the board, according to two sources familiar with the situation. Their initial bid of 295p per share was rejected by Songbird’s board, which has three independent directors and three appointees each from Mr Glick and Morgan Stanley. Mr Costa’s appointment brings the number of board appointees nominated by Qatar Holding, the direct investment arm of the Qatar Investment Authority, back up to three. The QIA and Brook-

field last week made a final offer of 350p per share, valuing Songbird at £2.6bn. They now have support from shareholders representing 31.6 per cent of Songbird’s free float, having received letters of intent from EMS Capital, Madison International Realty and Third Avenue Management. However, they need one of the three major shareholders to sell out in order to win control. The bid has caused tensions between Songbird’s board members, who will have to continue to work together if the QIA/Brookfield bid is rejected. The board will produce a recommendation to shareholders once it has received the full offer document from QIA/Brookfield, sometime in the coming weeks. As a QIA representative, Mr Costa will be recused from board duty until the outcome of the takeover battle is known. The founder of Ken Costa Strategic, a company providing advice to international clients, South African-born Mr Costa was formerly chairman of Lazard International and chairman of Europe, Middle East and Africa at UBS. He has worked in the City of London for more than 30 years. A seasoned deal maker, Mr Costa brokered the £1.5bn deal to sell Harrods to the Qataris and later acted for the emirate when it acquired a majority stake in Aim-listed European Goldfields. More recently, Mr Costa teamed up with three former Goldman Sachs bankers to launch an ambitious $2bn emerging markets-focused private equity fund, but the group failed to reach its fundraising targets and was dismantled.

Mobile & telecoms

D Telekom prospectus ‘error’ JEEVAN VASAGAR — BERLIN

Thousands of small investors achieved a partial victory yesterday after Germany’s highest court ruled Deutsche Telekom had misled potential shareholders over its flotation prospectus. The initial public offering at the turn of the century was a pivotal moment in Germany, transforming normally cautious investors into enthusiastic buyers of a stock marketed as the “Volksaktie” — “the people’s share”. But after the IPO, Deutsche Telekom announced a writedown on its property portfolio, prompting a slump in the share price. About 17,000 retail investors are suing Deutsche Telekom, alleging flaws in the 2000 prospectus. Germany’s Federal Court of Justice ruled partially in the investors’ favour yesterday. The court said that it “affirms an error in the prospectus in relation to the internal transfer of shares held in the US telecoms company Sprint”. Lawyers for the investors, who are seeking €80m in compensation, welcomed the decision, saying it paved the way for damages. The former state monopoly was partially privatised in three capital issues in the 1990s and 2000. In the final raising of capital, 200m shares were sold at €66.50, raising €13bn in total proceeds. Before the final capital issue, Deutsche Telekom booked a capital gain of €8.2bn for the sale of its stake in Sprint.

The court’s statement said this was “objectively false”, as the shares were not sold but transferred to a Deutsche Telekom subsidiary. The prospectus should have explained that Deutsche Telekom continued to bear the risk of a fall in the price of Sprint shares, the court said. “Even an informed investor could not have deduced the ownership of the stake in 1999, and the accompanying risks,” the court statement said. The court accepted the decision of a lower court, which found that Deutsche Telekom had not overvalued its property portfolio in its IPO prospectus. The Federal Court of Justice referred the case back to a regional court in Frankfurt to rule on “causation and culpability”. The lower court will rule on any damages. Andreas Tilp, a lawyer for the investors, said the ruling was a “historic victory” for German investors. Deutsche Telekom expressed “regret” at the finding, adding that it was “confident the courts will determine that there is no liability for damages”. Shares in Deutsche Telekom closed up 1 per cent at €13.04 in Frankfurt. Combined with the bursting of the dotcom bubble, the Deutsche Telekom experience reinforced ordinary Germans’ reluctance to invest in equities. More recent IPOs in Germany, such as that of online fashion retailer Zalando, have been dominated by institutional investors.

Stefano Pessina, below, one of the architects of the deal, will take the helm after the pharmacy chains merge while the search starts for a permanent chief — Daniel Acker /Bloomberg,

the search for a permanent chief executive. The combined company will have 11,000 stores in 10 countries and a drug distribution business in 20 countries. Mr Pessina, who is one of the architects of the deal, said: “I look forward to working with James Skinner and all the leaders of the future enterprise when we launch the combined group.” It is not the first time Mr Pessina, who

is the largest shareholder in Alliance Boots and will own about 20 per cent of the combined company, has stepped into a management role. In 2011, after Andy Hornby resigned suddenly as Alliance Boots’ chief executive, the Italian entrepreneur took over running the company until a replacement was found. Walgreens bought 45 per cent of Boots

for $6.7bn in 2012, four years after Mr Pessina and private equity group KKR bought the UK’s largest pharmacy chain by number of stores, then Europe’s biggest buyout. The £10bn transaction contained an option for the US company to acquire the remaining portion three years later. Mr Pessina made about £500m from the original acquisition of Boots. Alli-

ance Boots is now domiciled in Bern, Switzerland. However, he and KKR did not take a dividend while it was in their ownership. Mr Pessina took shares from the first phase of the Walgreens deal, giving him an 8 per cent stake worth about $4.5bn. The second phase will see the value of his 20 per cent holding swell to about $13bn at the current share price. He originally invested $2.5bn.

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Friday 12 December 2014

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FINANCIAL TIMES

COMPANIES

Travel & leisure. Motorsport

Ecclestone vows to maintain iron grip on Formula One Chief executive fights against proposal to reduce his influence over the series ROGER BLITZ — LONDON

Bernie Ecclestone came out fighting against plans to clip his wings as Formula One chief executive and made clear he had no intention of relinquishing his power any time soon. “I run the company as if it belonged to me,” said a defiant Mr Ecclestone, now embroiled in a power struggle with F1’s major shareholder, private equity group CVC Capital Partners. The man who has run F1 for more than 30 years is resisting a proposal from Donald Mackenzie, CVC cofounder, to install former Diageo boss Paul Walsh as chairman with executive duties. The proposal is part of an F1 succession strategy devised by Mr Mackenzie that would gradually reduce Mr Ecclestone’s iron grip on the running of the motorsport series. Mr Ecclestone, 84,

summoned the media to the headquarters of Formula One Management in Knightsbridge to say it was by no means certain Mr Walsh would become chairman. Ahead of a planned meeting with Mr Walsh yesterday afternoon, Mr Ecclestone said of the proposal: “Donald’s directing it.” Asked about the idea of working alongside Mr Walsh, Mr Ecclestone said: “I don’t need to do anything with anybody. Fortunately enough, I’m over the retirement age, got a few dollars in the bank still, so not looking for a job. “I’m happy here as long as the board are happy with me. When I think I can’t deliver any longer, I shall retire.” He had not yet reached that moment, he added. F1 has for years been transfixed by the succession issue, and Mr Mackenzie’s proposal is CVC’s first genuine attempt to address it. He held several conversations in the latter part of the season with F1 team principals and investors, but held back until after the final Grand Prix before indicating he was ready to move. The proposal was due to be unveiled

F1 has been transfixed by the succession issue for years and Donald Mackenzie’s proposal is CVC’s first genuine attempt to address it — Alberto Saiz/AP at an F1 board meeting in Jersey on Monday. Mr Walsh would be nominated as successor to Nestlé chairman Peter Brabeck-Letmathe, who is having longterm medical treatment. But the board meeting did not even discuss the chairmanship. Mr Ecclestone’s clear opposition to the idea appears to have prompted Mr Mackenzie to hold fire. On suggestions that Mr Walsh would try to rein in Mr Ecclestone, the chief executive quipped: “He would be unique if he could do that.” Did he think Mr Walsh would try to rein him in? “Depends,” said Mr Ecclestone. “First he’s got to be appointed.” Mr Ecclestone did reiterate that he would like to bring a sponsorship expert into Formula One Management. But to the idea of gradually handing over responsibilities to Mr Walsh and others, he said: “Let’s have a look and see.” He added: “I‘ve got a little bit of experience. I’m in the good position that people trust me reliably. When I shake hands with them, they don’t need a contract, they know that it’s done, that’s the end of it. It takes an awful long time to get that sort of reputation. And whoever’s doing what I do would take a long time to achieve that.” Mr Walsh was “one of a number of people” suggested to become chairman and was not a shoo-in for the job, said Mr Ecclestone. Finding “a new Bernie” was a bit of a nonsense,

Thoughts of the day Ecclestone on . . . “It’s been difficult at certain stages of the year” — on 2014, a year which included his bribery trial in Germany (the trial ended when he agreed to pay $100m to settle the case). “It’s not easy taking your mind away when someone says you might get 10 years in prison” — on whether the job helped distract him from the trial. “Since people have been breaking my balls on this social media, I’ve been looking at this tweeting thing and I can’t see anything on there except

Pharmaceuticals

he said. “If I died now, there’s enough people in the company that could continue running the company in the way we’ve set things up.” If he controlled the board, he added, he would choose as his successor Sacha Woodward-Hill, his close aide and F1’s legal counsel. His objections to Mr Walsh appear to be related to the hands-on role Mr Mackenzie envisages for him. Mr Ecclestone did recognise that if CVC wanted “a sort of a front guy” to help steer F1 to the private equity group’s long-cherished hope of flotation, “the right person would come along. Maybe this Mr Walsh being the chairman would be the right person”. The problem for CVC, he added, was that F1 was “a bit unique to other companies they’ve bought”. Mr Ecclestone stirred more controversy by saying the financial problems affecting some of the sport’s weaker teams could be resolved by allowing teams to race in cars with the old formula V8 and V10 engines. He intends to propose the rule change at a summit of F1 teams next week. But it is bound to be opposed by the Fédération International de l’Automobile, the regulator, which was instrumental in changing the formula to the new hybrid turbo V6 engine. Defiant: Bernie Ecclestone shows no sign of letting go of F1 Laszlo Balogh/Reuters

[Mercedes team principal] Toto Wolff and one of my daughters. And I thought, what does it ever do? There’s a few idiots who put things on there. How does it ever help Formula One?” — on being criticised over comments disparaging social media. “Not really. He’s not sure” — on whether he and Donald Mackenzie argue about social media’s value to F1. “CVC keep talking about a public offering. When it gets closer, they think, is it such a good idea? It’s not on the agenda” — on floating F1. “My ex used to say I’ll die in a motorhome on the circuit”— on death.

.

Ebola vaccine trial suspended DAVID CROW — NEW YORK

The race to stem the spread of Ebola suffered a setback yesterday when researchers suspended a clinical trial of a new vaccine, and US officials said an American nurse with exposure to the disease would be admitted to a special treatment facility. The phase one study to assess the safety of the vaccine, which is being developed by Merck and NewLink Genetics, was stopped a week early after four out of 59 volunteers complained of pains in their hands and feet. “They are all fine and being monitored regularly by the medical team leading the study,” said a statement from the University of Geneva Hospital, where the trial is being conducted. It came as the US National Institutes

of Health said it expected to admit an American nurse — who was exposed to the virus while volunteering in Sierra Leone — to a special clinical unit in Maryland. If confirmed, the patient would become the fifth person to be diagnosed with Ebola in the US. Sierra Leone has overtaken Liberia as the country with the highest number of cases in west Africa, with 7,897 reported since the beginning of the outbreak. The National Institute of Health said it had “taken every precaution to ensure the safety of” its patients, its staff, and the public, to whom the situation posed a “minimal risk”. Swiss researchers said they planned to resume the trial of the vaccine — which was scheduled to run for another week — in January after checks to ensure the joint pain was “benign and temporary”.

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Friday 12 December 2014

MARKET DATA WORLD MARKETS AT A GLANCE

FT.COM/MARKETSDATA

Change during previous day’s trading (%) S&P 500

Nasdaq Composite

1.44%

Dow Jones Ind

1.59%

FTSE 100

FTSE Eurofirst 300

-0.59%

1.26%

0.02%

Nikkei

Hang Seng

-0.89%

-0.90%

FTSE All World $

$ per €

$ per £

-0.322%

0.40%

0.064%

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

Nov 12 - Dec 11 S&P 500

All World

New York 2,055.25

2,039.68

Index

Nov 12 - Dec 11 S&P/TSX COMP

All World

Toronto

Month 0.80%

Year 13.98%

Nasdaq Composite

Day 1.33%

New York 4,758.34

4,660.56

Month -4.91%

Year 6.87%

IPC

Month 2.29%

Year 17.18%

Dow Jones Industrial

17,753.97

17,614.90 Day 1.26% Country

Month 0.75% Index

Year 11.10%

6,627.40 Day -0.59%

6,500.04 Year -0.49%

Month -2.29%

FTSE Eurofirst 300

Day 0.63%

Month -6.05%

Year -1.61%

Bovespa

1,357.43

1,343.41 Day 0.02%

São Paulo

Month 0.01%

Year 8.16%

CAC 40

Apple Facebook Class A Exxon Mobil Staples Microsoft Ebay Tesla Motors Bank Of America Gilead Sciences Citigroup

stock traded m's 19.8 11.5 8.1 8.1 6.4 6.2 5.9 5.3 5.1 4.8

close price 113.60 78.35 91.10 16.14 47.73 57.46 214.85 17.60 106.30 54.96

Day's change 1.65 2.17 2.43 1.33 0.83 2.19 5.01 0.22 1.46 0.49

Close price

Day's change

Day's chng%

33.02 16.14 35.53 62.73 74.82

3.01 1.33 2.71 3.34 3.77

53.46 42.99 23.59 32.75 81.44

-1.48 -0.78 -0.37 -0.41 -0.67

BIGGEST MOVERS Ups Urban Outfitters Staples Diamond Offshore Drilling Hospira Eli Lilly & Co. Downs Garmin Ltd Nielsen N.v. Freeport-mcmoran Allegheny Macerich

52,474.27 Day -0.39% Country

49,353.90 Year -1.43%

Month -5.95% Index

Dec 11

Dec 10

4,225.86

4,179.88 Day -0.05% Country

Month 0.07% Index

Year 3.29%

Cyprus Czech Republic Denmark Egypt Estonia Finland France

-1.00%

-1.04%

Frankfurt

Index

Nov 12 - Dec 11 Nikkei 225

All World

Month 5.27%

Year 8.65%

Ibex 35

Madrid

10,157.30 Month 1.55%

Year 10.53%

FTSE MIB

Day -1.49%

Hong Kong

Month -2.13%

Year -3.86%

FTSE Straits Times

Singapore 3,318.70

23,938.18

3,283.71

23,312.54 Day -0.90%

Milan

Seoul

1,916.59

Year 10.54%

Hang Seng

10,431.80

Day 0.34%

Month 2.84%

All World

1,967.27

17,257.40

Day -0.89%

Index

Nov 12 - Dec 11 Kospi

Tokyo

Month -1.82%

Year -1.82%

Shanghai Composite

Day -0.21%

Shanghai

Month 0.86%

Year 8.48%

BSE Sensex

Mumbai

19,201.07

18,702.24

28,008.90

2,494.48

Day -0.09%

Month -0.28%

Country

Index

Philippines Poland Portugal

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

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

Year 6.83% Dec 11

Dec 10

7072.10 52550.03 4920.60 2185.80 6742.43 1455.04 824.01 8393.92 3318.70 216.79 766.83 48110.52 40433.13 42438.05 1916.59 245.54 10431.80 7243.34 1454.45 468.34 9058.82 9013.07

7175.08 52477.44 4976.52 2208.35 6879.17 1486.85 855.05 8410.98 3325.81 217.49 783.34 48745.43 41775.93 43062.01 1945.56 249.35 10396.90 7254.28 1452.80 468.47 9020.83 9032.16

Day -0.49% Country Thailand Turkey UAE UK

USA

Venezuela Vietnam

Month 18.28% Index Bangkok SET BIST 100 Abu Dhabi General Index FT 30 FTSE 100 FTSE 4Good UK FTSE All Share FTSE techMARK 100 DJ Composite DJ Industrial DJ Transport DJ Utilities Nasdaq 100 Nasdaq Cmp NYSE Comp Russell 2000 S&P 500 Wilshire 5000 IBC VNI

Year 30.76% Dec 11

Dec 10

1526.81 84126.33 4368.31 2692.70 6461.70 5745.77 3470.90 3405.77 6408.94 17753.97 8989.90 607.05 4290.65 4758.34 10782.67 1161.86 2055.25 21534.07 3552.83 550.11

1559.56 84142.64 4582.91 2715.70 6500.04 5771.93 3491.02 3407.28 6322.83 17533.15 8858.34 597.46 4224.87 4684.03 10662.24 1188.06 2026.14 21244.73 3196.63 557.19

Day -0.82% Country

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

Cross-Border

27,602.01 Year 29.86%

Month -0.98% Dec 11

Dec 10

240.49 3159.11 826.78 5630.33 274.43 1357.43 2745.38 1335.80 1159.86 3288.90 1524.12 485.39 3939.58 4188.62 414.77 1698.43 1375.86 2317.58 1366.62 1389.93 1897.59 2991.96

238.21 3150.95 827.97 5595.68 273.33 1357.21 2743.38 1325.37 1177.43 3392.50 1545.21 483.03 3940.30 4179.32 420.22 1721.97 1381.03 2351.42 1363.95 1388.90 1888.07 2987.62

UK MARKET WINNERS AND LOSERS

LONDON ACTIVE STOCKS

stock traded m's Bp 200.6 National Grid 150.6 Rio Tinto 150.1 Glaxosmithkline 145.5 Bhp Billiton 131.7 British American Tobacco 131.2 Hsbc Holdings 128.0 Shire 126.5 Vodafone 115.3 Bg 113.4

close price 398.80 900.50 2748.00 1393.00 1361.00 3510.50 615.30 4565.00 222.95 843.70

Day's change 0.09 -3.88 -45.25 5.13 5.18 -72.50 -5.60 23.31 -0.52 -22.60

BIGGEST MOVERS

EURO MARKETS ACTIVE STOCKS Bbva Airbus Iberdrola Intesa Sanpaolo Repsol Telefonica Santander Bayer Ag Na Total Unicredit

Close price

Day's change

Day's chng%

10.03 8.94 8.26 5.62 5.30

Ups Spirent Communications Ocado Kier Tullett Prebon Laird

71.20 355.40 1470.00 255.30 311.20

5.05 21.40 47.50 7.80 8.00

7.63 6.41 3.34 3.15 2.64

Ups Inditex Technip Orange Alcatel-lucent Oci

-2.69 -1.78 -1.54 -1.24 -0.82

Downs Ferrexpo Bank Of Georgia Holdings Supergroup Enquest Soco Int

57.35 1949.00 835.00 35.80 243.40

-3.65 -110.00 -40.57 -1.81 -11.10

-5.98 -5.34 -4.89 -4.81 -4.36

Downs Piraeus Bank (cr) National Bank (cr) Alpha Bank (cr) Raiffeisen Bank Internat. Ag Airbus

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

0.543%

17,124.11

Day 0.64%

STOCK MARKET: BIGGEST MOVERS AMERICA ACTIVE STOCKS

-0.253%

Gold $

2,925.74

Dec 10

8279.04 5237.10 5259.00 3266.40 2234.50 3254.78 4816.62 49548.08 810.67 13852.95 651.98 18926.66 8443.67 9911.58 3079.85 282.87 2940.01 1517.81 1019.63 1444.01 1756.03

All World

9,210.96

Paris

20325.96 25227.94 19217.69 4321.52 17412.58 1184.07 1406.83 2145.04 5135.97 6562.71 420.97 455.07 1511.84 1765.52 41372.66 9808.60 416.71 633.74 5523.58 32932.41 594.67 31781.65

8526.47 5207.40 5231.00 3209.30 2208.31 3261.96 4841.88 49353.90 821.13 14037.33 655.75 18861.12 8319.71 9992.18 3064.69 286.74 2925.74 1531.51 1023.35 1444.01 1760.51

Index

Nov 12 - Dec 11 Xetra Dax

Europe

Dec 11

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

Dec 10

London

FTSE Italia All-Share 20298.27 CSE M&P Gen 85.01 83.33 Italy FTSE Italia Mid Cap 25116.96 PX 983.91 994.75 OMXC Copenahgen 20 755.98 759.34 FTSE MIB 19201.07 EGX 30 9404.17 9482.62 Japan 2nd Section 4322.82 OMX Tallinn 766.80 773.11 Nikkei 225 17257.40 Austria OMX Helsinki General 7801.12 7814.91 S&P Topix 150 1174.83 Belgium CAC 40 4225.86 4227.91 Topix 1397.04 Jordan Amman SE 2145.63 SBF 120 3317.59 3321.87 Brazil Germany M-DAX 16656.46 16644.10 Kenya NSE 20 5124.80 Canada Kuwait KSX Market Index 6463.76 TecDAX 1351.59 1348.20 XETRA Dax 9862.53 9799.73 Latvia OMX Riga 419.43 Chile Greece Athens Gen 827.98 893.71 Lithuania OMX Vilnius 457.89 Luxembourg LuxX 1509.23 China FTSE/ASE 20 266.34 288.53 Hong Kong Hang Seng 23312.54 23524.52 Malaysia FTSE Bursa KLCI 1744.57 HS China Enterprise 11255.43 11372.45 Mexico IPC 41634.74 HSCC Red Chip 4326.12 4368.08 Morocco MASI 9773.13 Hungary Bux 17463.68 17621.96 Netherlands AEX 416.77 India BSE Sensex 27602.01 27831.10 AEX All Share 633.37 S&P CNX 500 6744.95 6796.25 New Zealand NZX 50 5502.07 Indonesia Jakarta Comp 5152.70 5165.41 Nigeria SE All Share 32203.62 Colombia Ireland ISEQ Overall 5173.85 5147.95 Norway Oslo All Share 593.71 Croatia Israel Tel Aviv 100 13.14 13.10 Pakistan KSE 100 31779.75 (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. Argentina Australia

Dec 11

All World

44,300.83

New York

Oil Brent $ Sep

ASIA Index

Nov 12 - Dec 11 FTSE 100

Mexico City

41,634.74

Day 1.59%

£ per €

9,862.53

14,856.20 14,037.33

Day 1.44%

¥ per $

stock traded m's 597.3 555.7 512.4 471.8 445.9 390.5 384.5 367.7 364.9 356.6

close price 8.22 41.32 5.61 2.49 17.20 12.92 7.01 115.65 42.57 5.59

Day's change -0.02 -1.85 -0.03 0.00 -0.20 0.01 0.03 0.00 0.03 0.00

stock close traded m's price Toyota Motor 1059.2 7481.00 Softbank . 583.7 7311.00 Mitsubishi Ufj Fin,. 427.2 670.00 Mazda Motor 347.0 2969.00 Fuji Heavy Industries 331.6 4304.00 Sumitomo Mitsui Fin,. 320.7 4317.00 Sony 291.8 2464.00 Mizuho Fin,. 283.8 203.60 Japan Tobacco . 268.3 3550.00 Fast Retailing Co., 235.8 41910.00

Day's change -42.00 -110.00 -10.40 -20.50 29.00 -75.00 -40.00 -1.40 -75.50 -495.00

Close price

Day's change

Day's chng%

BIGGEST MOVERS

23.29 48.42 13.99 2.79 29.77

0.94 1.43 0.29 0.05 0.55

0.93 1.45 0.46 14.75 41.32

-0.15 -0.15 -0.03 -0.75 -1.85

BIGGEST MOVERS

Based on the constituents of the FTSE 350 index

TOKYO ACTIVE STOCKS

Close price

Day's change

Day's chng%

4.23 3.03 2.08 1.90 1.88

Ups Unitika Showa Denko K.k. Takashimaya , Sekisui House, All Nippon Airways Co.,

63.00 179.00 983.00 1551.50 300.40

2.00 4.00 19.00 27.00 4.40

3.28 2.29 1.97 1.77 1.49

-13.89 -9.38 -5.71 -4.84 -4.30

Downs Tokai Carbon Co., Nisshin Steel Holdings Co., Chugai Pharmaceutical Co., Kyowa Hakko Kirin Co., Nippon Steel & Sumitomo Metal

353.00 1121.00 3060.00 1212.00 302.30

-13.00 -36.00 -90.00 -34.00 -7.60

-3.55 -3.11 -2.86 -2.73 -2.45

Based on the constituents of the FTSEurofirst 300 Eurozone index

Based on the constituents of the Nikkei 225 index

Dec 11 price(p)

%Chg week

%Chg ytd

54.2 -13.5 -30.4 6.4 -0.1 5.9 10.9 11.0 -16.0 10.7 31.2 8.2

FTSE 250 Winners Ao World Ocado Card Factory Spirent Communications Victrex Fisher (james) & Sons Catlin Ltd Daejan Holdings Booker Dignity Debenhams Countrywide

283.20 355.40 264.00 71.20 1961.00 1154.00 586.50 5500.00 148.70 1820.00 73.65 453.20

13.9 7.7 7.4 6.5 5.7 5.5 5.0 4.5 4.2 4.1 4.0 3.9

-19.5 -31.4 6.8 -7.7 1.0 21.9 -8.5 26.4 0.9 -23.8

FTSE SmallCap Winners Sportech Boot (henry) Ashley (laura) Holdings Centaur Media Consort Medical Allied Minds Greggs Dialight Mountview Estates Sthree Kcom Mecom

-11.1 -40.8 -15.3 -34.5 -19.5 -5.7 -28.5 -55.7 -25.5 -21.0 -18.1 -25.0

Losers Afren Enquest Ophir Energy Lonmin Bank Of Georgia Holdings Premier Oil Vedanta Resources Nostrum Oil & Gas Soco Int Fenner Supergroup Ferrexpo

36.20 35.80 117.60 160.00 1949.00 168.90 619.00 509.00 243.40 211.70 835.00 57.35

-22.0 -21.7 -14.6 -12.6 -12.4 -12.2 -10.1 -9.8 -9.7 -9.6 -9.1 -8.9

-78.6 -73.4 -64.1 -48.1 -18.6 -46.1 -33.7 -38.4 -56.4 -44.2 -70.0

Losers Petropavlovsk Asia Resource Minerals Kenmare Resources Premier Foods Salamander Energy Hardy Oil & Gas Aquarius Platinum Ld Candover Investments Ite Aga Rangemaster Jpmorgan Russian Securities Arrow Global

FTSE 100 Winners Ashtead Arm Holdings Imi G4s Fresnillo Tui Travel St. James's Place Carnival Kingfisher Legal & General Astrazeneca Bt

Dec 11 price(p)

%Chg week

%Chg ytd

1172.00 959.00 1213.00 279.20 745.00 437.60 805.50 2789.00 322.20 246.60 4688.00 411.10

8.5 3.0 2.8 2.2 2.1 2.1 2.0 1.7 1.7 0.7 -0.2 -0.2

Losers Anglo American Petrofac Aberdeen Asset Management Bg Aggreko Glencore Smiths Tullow Oil Bhp Billiton Weir Bp Coca-cola Hbc Ag

1173.00 724.00 423.90 843.70 1445.00 294.85 1058.00 372.80 1361.00 1695.00 398.80 1328.00

-8.6 -8.5 -8.1 -8.0 -7.9 -7.8 -7.6 -7.4 -7.2 -6.4 -6.4 -6.2

Dec 11 price(p)

%Chg week

%Chg ytd

54.25 198.00 28.50 66.00 815.00 321.50 663.00 794.00 9960.00 307.75 89.50 141.00

10.7 8.8 7.1 6.0 5.8 5.8 5.7 4.5 4.4 4.3 4.1 3.7

-33.4 -1.0 16.5 12.8 -14.8 54.0 -7.2 43.8 -14.8 -8.7 62.5

Dec 11 Industry Sectors price(p) Winners Technology Hardware & Equip. 1155.48 Electronic & Electrical Equip. 3849.19 Chemicals 10954.58 Fixed Line Telecommunication 4667.30 Nonlife Insurance 1864.74 Mobile Telecommunications 5025.03 Industrial Transportation 2654.42 General Retailers 2869.03 Household Goods 12398.61 Support Services 6285.38 Industrial Engineering 8475.92 Equity Investment Instruments 7165.59

10.00 10.25 3.70 30.50 58.75 79.00 13.50 412.25 145.00 114.25 306.63 225.50

-39.4 -22.6 -17.8 -15.3 -15.2 -12.9 -11.5 -10.7 -9.5 -9.3 -9.1 -8.3

-86.3 -95.5 -82.2 -75.6 -47.4 5.3 -65.8 4.6 -52.8 -32.4 -43.5 -15.1

Losers Mining 13729.15 Oil Equipment & Services 16170.65 Oil & Gas Producers 6816.85 Industrial Metals 1334.60 Food & Drug Retailers 2587.25 Tobacco 40534.01 Aerospace & Defense 4557.71 Gas Water & Multiutilities 5978.84 Construction & Materials 3958.81 Software & Computer Services 1213.24 Automobiles & Parts 7848.89 Health Care Equip.& Services 6093.71

%Chg week

%Chg ytd

3.4 0.3 0.2 0.1 -0.2 -0.2 -0.3 -0.6 -0.7 -1.0 -1.1 -1.3

-8.0 -15.2 1.1 6.0 2.1 -8.7 -17.9 8.6 11.6 -3.3 -18.3 5.6

-7.0 -6.8 -6.0 -4.9 -4.8 -4.7 -4.1 -2.7 -2.6 -2.5 -2.5 -2.2

-16.1 -26.8 -17.0 -4.9 -41.3 11.6 -15.4 5.6 -7.9 3.6 -9.8 26.3

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

CURRENCIES Dec 11 Argentina Australia Bahrain Bolivia Brazil Canada Chile China Colombia Costa Rica Czech Republic Denmark Egypt Hong Kong Hungary India

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

DOLLAR Closing Mid 8.5550 1.2116 0.3770 6.9100 2.6498 1.1530 616.3050 6.1886 2427.5000 534.0350 22.2984 6.0066 7.1501 7.7512 248.7947 62.3300

Day's Change 0.0077 0.0434 0.0060 0.0100 0.0118 34.9000 0.0050 0.0582 0.0151 0.0001 1.6236 0.2900

EURO Closing Mid 10.5932 1.5003 0.4668 8.5563 3.2811 1.4276 763.1410 7.6630 3005.8572 661.2700 27.6110 7.4376 8.8536 9.5980 308.0706 77.1803

POUND Day's Closing Day's Change Mid Change -0.0291 13.4280 0.0023 0.0055 1.9018 0.0125 -0.0013 0.5917 0.0001 -0.0235 10.8460 0.0019 0.0449 4.1592 0.0689 0.0035 1.8097 0.0097 -2.0817 967.3599 0.1826 -0.0064 9.7137 0.0202 35.0849 3810.2351 55.4284 -1.8084 838.2280 0.1526 -0.0034 34.9998 0.0975 -0.0017 9.4280 0.0253 -0.0243 11.2228 0.0019 -0.0262 12.1665 0.0023 1.1705 390.5112 2.6153 0.1483 97.8339 0.4720

Dec 11 Indonesia Iran Israel Japan ..One Month ..Three Month ..One Year Kenya Kuwait Malaysia Mexico New Zealand Nigeria Norway Pakistan Peru

Currency Indonesian Rupiah Iranian Rial Israeli Shekel Japanese Yen

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

DOLLAR Closing Mid 12348.5000 9740.5000 3.9256 119.4300 119.4299 119.4299 119.4293 90.5450 0.2921 3.4890 14.6913 1.2826 180.7500 7.2770 100.6250 2.9675

Day's Change 12.0000 -0.0047 0.6450 0.6448 0.6447 0.6435 -0.1050 0.0005 0.0105 0.1850 -0.0120 0.7500 0.1068 -0.3200 0.0080

EURO POUND Closing Day's Closing Day's Mid Change Mid Change 15290.5666 -27.0518 19382.3617 22.1770 12061.1985 -33.0983 15288.8133 2.6409 4.8608 -0.0192 6.1616 -0.0063 147.8844 0.3951 187.4588 1.0446 147.8844 0.3949 187.4586 1.0443 147.8844 0.3949 187.4585 1.0439 147.8842 0.3946 187.4586 1.0428 112.1175 -0.4380 142.1205 -0.1402 0.3616 -0.0004 0.4584 0.0008 4.3203 0.0012 5.4764 0.0174 18.1915 0.1798 23.0596 0.2943 1.5882 -0.0193 2.0132 -0.0185 223.8141 0.3171 283.7074 1.2260 9.0108 0.1079 11.4221 0.1697 124.5991 -0.7392 157.9422 -0.4749 3.6745 -0.0001 4.6578 0.0134

Dec 11 Currency Philippines Philippine Peso Poland Polish Zloty Romania Romanian Leu Russia Russian Ruble Saudi Arabia Saudi Riyal Singapore Singapore Dollar South Africa South African Rand South Korean Won South Korea Sweden Swedish Krona Switzerland Swiss Franc Taiwan New Taiwan Dollar Thailand Thai Baht Tunisia Tunisian Dinar Turkey Turkish Lira United Arab Emirates UAE Dirham United Kingdom Pound Sterling

DOLLAR Closing Mid 44.4900 3.3731 3.5990 55.7033 3.7534 1.3155 11.6489 1100.8300 7.5546 0.9702 31.2035 32.8400 1.8566 2.2770 3.6731 0.6371

Day's Change -0.1700 0.0140 0.0186 0.9735 0.0009 0.0037 0.0648 -1.3700 0.0249 0.0013 -0.1125 0.0003 0.0121 -0.0001

EURO Closing Mid 55.0898 4.1767 4.4565 68.9747 4.6476 1.6289 14.4243 1363.1052 9.3545 1.2013 38.6378 40.6642 2.2989 2.8194 4.5482 0.7889

POUND Day's Closing Day's Change Mid Change -0.3622 69.8321 -0.2547 0.0059 5.2945 0.0229 0.0109 5.6490 0.0302 1.0195 87.4325 1.5428 -0.0116 5.8913 0.0024 0.0002 2.0648 0.0062 0.0409 18.2843 0.1049 -5.4414 1727.8764 -1.8518 0.0053 11.8578 0.0412 -0.0017 1.5228 0.0022 -0.1060 48.9774 0.0085 -0.2513 51.5461 -0.1677 -0.0059 2.9141 0.0010 0.0073 3.5739 0.0196 -0.0125 5.7653 0.0010 -0.0023 -

Dec 11 ..One Month ..Three Month ..One Year United States ..One Month ..Three Month ..One Year Venezuela Vietnam European Union ..One Month ..Three Month ..One Year

Currency

United States Dollar

Venezuelan Bolivar Fuerte Vietnamese Dong Euro

DOLLAR Closing Mid 0.6371 0.6370 0.6367 12.0000 21365.0000 0.8076 0.8076 0.8075 0.8070

Day's Change -0.0001 -0.0001 -0.0001 0.0022 0.0022 0.0022 0.0022

EURO POUND Closing Day's Closing Day's Mid Change Mid Change 0.7889 -0.0023 0.7888 -0.0023 0.7884 -0.0023 1.2383 -0.0034 1.5696 0.0003 1.2382 -0.3311 1.5696 0.0003 1.2382 -0.3311 1.5695 0.0003 1.2377 -0.3311 1.5693 0.0003 14.8590 -0.0408 18.8353 0.0033 26455.3064 -72.5664 33534.8779 5.8468 1.2676 0.0037 1.2676 0.0037 1.2675 0.0037 1.2671 0.0037

Rates are derived from WM/Reuters at 4pm (London time). Currency redenominated by 1000. Some values are rounded by the F.T. The exchange rates printed in this table are also available on the internet at http://www.FT.com/marketsdata

UK SERIES

FTSE ACTUARIES SHARE INDICES

www.ft.com/equities

Produced in conjunction with the Institute and Faculty of Actuaries

£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E Dec 11 chge% Index Dec 10 Dec 09 ago yield% Cover ratio FTSE 100 (100) 6461.70 -0.59 6383.02 6500.04 6529.47 6445.25 3.61 1.86 14.91 FTSE 250 (250) 15663.52 -0.47 15472.80 15737.52 15714.28 15211.54 2.68 2.08 17.97 16867.72 -0.50 16662.33 16952.92 16926.92 16513.06 2.73 2.21 16.59 FTSE 250 ex Inv Co (212) FTSE 350 (350) 3532.21 -0.57 3489.20 3552.49 3565.20 3508.70 3.46 1.88 15.32 FTSE 350 ex Investment Trusts (312) 3511.62 -0.58 3468.86 3532.02 3545.01 3493.71 3.49 1.90 15.13 FTSE 350 Higher Yield (96) 3450.05 -0.56 3408.04 3469.42 3492.94 3515.19 4.76 1.70 12.37 FTSE 350 Lower Yield (254) 3269.31 -0.58 3229.51 3288.54 3289.08 3157.45 2.08 2.34 20.55 FTSE SmallCap (292) 4294.37 -0.73 4242.08 4326.07 4318.18 4320.54 2.46 1.69 24.03 FTSE SmallCap ex Inv Co (152) 3720.05 -0.85 3674.75 3751.77 3748.86 3905.80 2.35 2.42 17.62 FTSE All-Share (642) 3470.90 -0.58 3428.63 3491.02 3502.88 3448.92 3.43 1.88 15.51 FTSE All-Share ex Inv Co (464) 3437.18 -0.58 3395.32 3457.31 3469.75 3422.68 3.47 1.90 15.17 FTSE All-Share ex Multinationals (577) 1114.62 -0.45 912.56 1119.66 1118.48 1098.72 2.92 2.04 16.74 FTSE Fledgling (97) 6768.01 -0.49 6685.60 6801.45 6779.09 6365.08 2.44 -0.68 -60.11 FTSE Fledgling ex Inv Co (53) 8419.72 -0.74 8317.20 8482.27 8416.70 7584.40 1.82 -3.93 -13.97 FTSE All-Small (389) 2969.47 -0.72 2933.31 2991.02 2985.35 2975.34 2.46 1.57 25.84 FTSE All-Small ex Inv Co Index (205) 2761.80 -0.84 2728.18 2785.23 2782.25 2872.00 2.33 2.21 19.48 FTSE AIM All-Share Index (841) 698.05 -0.75 689.55 703.36 706.86 823.58 1.16 2.28 37.82 FTSE Sector Indices Oil & Gas (22) 7219.01 Oil & Gas Producers (15) 6859.66 Oil Equipment Services & Distribution (7)16713.68 Basic Materials (31) 4562.09 11693.82 Chemicals (7) Forestry & Paper (1) 12541.02 Industrial Metals & Mining (2) 1381.42 Mining (21) 13144.27 Industrials (115) 4167.30 Construction & Materials (14) 4131.85 Aerospace & Defense (9) 4730.62 General Industrials (6) 3108.39 Electronic & Electrical Equipment (12) 4855.48 Industrial Engineering (14) 8852.22 Industrial Transportation (8) 3952.85 Support Services (52) 6189.66 Consumer Goods (38) 16105.01 Automobiles & Parts (1) 7889.11 Beverages (6) 14333.58 Food Producers (10) 8141.09 Household Goods & Home Construction (12)10351.08 Leisure Goods (2) 4996.20 Personal Goods (5) 21531.95 Tobacco (2) 40534.08 Health Care (19) 9363.33 Health Care Equipment & Services (9) 6189.53 Pharmaceuticals & Biotechnology (10)12826.65 Consumer Services (96) 4413.12 Food & Drug Retailers (7) 2700.60 General Retailers (30) 2782.06 Media (24) 6516.01 Travel & Leisure (35) 7639.35 Telecommunications (8) 3759.23 Fixed Line Telecommunications (6) 4735.21 Mobile Telecommunications (2) 5017.43 Utilities (8) 8686.55 Electricity (3) 9995.29 Gas Water & Multiutilities (5) 7901.65 Financials (283) 4611.92 Banks (7) 4329.31 Nonlife Insurance (12) 2139.17 Life Insurance/Assurance (12) 7656.01 Index- Real Estate Investment & Services (25) 2613.28 Real Estate Investment Trusts (20) 2710.49 General Financial (29) 7064.02 Equity Investment Instruments (178) 7451.05 Non Financials (359) 4012.48 Technology (22) 1195.75 Software & Computer Services (14) 1326.81 Technology Hardware & Equipment (8) 1471.03

-0.31 -0.33 0.14 -2.20 -0.35 -0.93 -4.10 -2.44 -0.89 -0.24 -1.74 -1.23 -0.59 -1.12 -0.25 -0.60 -0.88 0.21 -0.76 -1.44 -0.01 0.21 -0.54 -1.61 0.65 -0.53 0.76 -0.34 -1.28 0.39 -0.55 -0.27 0.11 0.19 0.07 -0.93 -0.89 -0.94 -0.59 -0.70 -0.97 -0.15 -0.88 -0.65 -0.98 -0.41 -0.57 0.20 0.10 0.27

7131.10 6776.14 16510.16 4506.54 11551.43 12388.31 1364.60 12984.22 4116.56 4081.54 4673.02 3070.54 4796.36 8744.43 3904.71 6114.29 15908.91 7793.05 14159.05 8041.96 10225.04 4935.36 21269.77 40040.52 9249.32 6114.16 12670.46 4359.38 2667.72 2748.18 6436.67 7546.34 3713.46 4677.55 4956.33 8580.78 9873.58 7805.44 4555.76 4276.60 2113.12 7562.78 2581.46 2677.49 6978.00 7360.32 3963.63 1181.19 1310.65 1453.12

7241.63 6882.27 16689.96 4664.72 11734.78 12658.55 1440.41 13472.79 4204.68 4141.75 4814.45 3147.19 4884.07 8952.46 3962.72 6227.06 16247.85 7872.66 14442.95 8260.31 10351.74 4985.65 21648.92 41199.44 9302.49 6222.63 12730.52 4428.04 2735.64 2771.11 6551.88 7660.41 3755.06 4726.46 5014.11 8768.20 10085.00 7976.91 4639.45 4359.74 2160.04 7667.19 2636.59 2728.34 7133.63 7482.08 4035.50 1193.36 1325.49 1467.04

7410.24 7042.87 17053.62 4726.16 11779.38 12305.95 1447.17 13682.58 4197.92 4162.33 4848.38 3105.11 4856.02 8998.80 3952.29 6190.68 16299.31 8025.41 14465.99 8231.16 10390.00 5109.98 21734.63 41370.23 9254.90 6278.98 12650.02 4417.28 2732.98 2768.10 6515.21 7652.98 3758.83 4706.43 5035.03 8773.28 10043.09 7992.71 4638.42 4373.19 2144.55 7649.85 2636.75 2718.97 7110.66 7467.69 4054.32 1188.60 1336.84 1448.15

8381.33 7927.37 22044.87 5054.69 11031.36 10631.07 1300.01 14931.26 4367.74 4177.49 5274.35 3454.55 5413.20 10101.55 4706.51 6084.23 14561.60 8387.32 13885.79 7030.51 8861.72 5789.79 20587.88 35119.74 8132.81 4788.43 11235.89 4420.37 4451.55 2582.23 6171.50 6736.77 3814.75 4324.15 5314.94 7816.80 8908.66 7129.58 4443.70 4591.19 2017.81 6549.89 2597.96 2218.12 6291.05 6990.57 4030.56 1143.66 1244.86 1424.99

4.68 1.76 4.69 1.75 4.24 1.97 3.98 2.79 2.20 2.43 3.03 3.19 0.72 14.83 4.24 2.79 2.64 2.07 3.72 0.34 2.29 4.02 3.62 1.86 2.33 2.12 2.68 2.34 3.86 1.48 2.42 1.77 3.04 1.86 2.41 3.62 2.40 1.93 1.96 1.83 2.46 2.47 4.28 1.09 3.10 2.65 4.18 1.30 3.62 1.25 1.44 2.46 3.80 1.21 2.80 2.02 5.94 2.08 2.35 2.41 2.92 1.49 1.97 2.35 4.11 2.53 2.80 1.90 4.89 2.74 4.91 1.24 4.99 0.69 4.89 1.40 3.16 1.78 3.43 1.18 3.12 1.44 3.33 1.84 1.80 5.52 3.05 5.83 3.09 1.88 2.45 1.04 3.52 1.91 1.38 2.04 2.09 1.96 0.89 2.17

X/D adj 231.29 407.73 449.07 121.04 121.27 162.52 69.19 101.99 88.68 117.84 118.11 31.59 171.15 159.77 70.72 65.06 8.57

Total Return 4876.06 10618.03 11656.28 5382.36 2754.53 5315.63 3388.18 5721.42 5208.28 5351.56 2741.18 1845.91 11915.11 14429.05 5081.04 4900.31 741.32

12.17 345.25 5744.64 12.18 329.40 5642.98 11.98 702.50 11787.04 9.00 178.82 4267.70 18.75 249.46 9859.54 10.36 379.57 12744.78 9.35 9.30 1195.62 8.45 551.27 6403.24 18.30 107.75 4037.02 79.02 156.30 4121.22 10.85 107.80 4780.93 14.86 111.44 3273.68 20.25 103.79 4196.28 15.92 238.29 10092.02 17.50 152.66 3198.65 23.42 143.69 6061.95 17.67 482.62 11001.93 11.44 190.35 7072.99 21.59 343.99 9504.82 27.80 230.52 6679.90 16.45 234.15 6870.22 21.40 205.93 4044.12 12.17 465.25 13495.09 18.46 1693.62 23593.58 22.08 341.77 6583.97 28.23 93.07 5169.59 21.68 489.33 7995.97 17.69 122.32 3888.64 8.10 158.56 3037.12 17.63 64.62 2976.21 23.02 187.38 3740.64 21.66 147.13 6806.31 9.65 144.07 3772.25 18.83 97.14 3955.99 7.45 245.60 4476.06 16.43 418.54 8809.81 29.07 500.46 12565.63 14.56 376.09 8061.56 17.77 145.58 3892.92 24.63 150.03 2866.82 22.28 67.47 3488.25 16.30 254.83 6787.91 10.07 49.28 6580.38 5.63 82.07 3110.42 17.19 218.14 7461.83 39.23 170.89 3815.58 14.85 139.51 5420.34 35.47 15.66 1473.65 24.51 26.11 1700.85 51.84 12.98 1673.84

8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Hourly movements FTSE 100 6498.06 6515.91 6497.96 6466.90 6444.52 6444.95 6456.97 6467.96 6469.26 6521.40 6441.44 FTSE 250 15712.44 15730.42 15687.35 15662.58 15626.96 15631.31 15658.17 15666.83 15664.39 15742.64 15617.63 FTSE SmallCap 4316.63 4315.67 4317.24 4313.80 4308.29 4305.71 4306.23 4305.93 4294.47 4318.02 4289.90 FTSE All-Share 3489.04 3497.43 3488.17 3473.66 3462.52 3462.79 3468.97 3474.09 3474.23 3499.92 3460.90 Time of FTSE 100 Day's high:08:40:15 Day's Low12:25:00 FTSE 100 2010/11 High: 6878.49(14/05/2014) Low: 6195.91(16/10/2014) Time of FTSE All-Share Day's high:08:56:00 Day's Low12:25:00 FTSE 100 2010/11 High: 3685.07(24/02/2014) Low: 3308.67(16/10/2014) Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown. For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS Issue price p 0.90 0.044 0.0675 0.006 -

Amount paid up -

Latest renun. date 2014-10-29 2014-10-31 2014-12-01 -

FT 30 INDEX

FTSE SECTORS: LEADERS & LAGGARDS

Dec 11 Dec 10 Dec 09 Dec 08 Dec 05 Yr Ago High Low Year to date percentage changes FT 30 2692.70 2715.70 2723.50 2788.40 2809.40 0.00 2856.60 2433.00 Health Care Eq & Srv 29.86 FT 30 Div Yield 1.87 1.86 1.85 1.81 1.80 0.00 3.93 2.74 Real Est Invest & Tr 21.22 P/E Ratio net 23.83 24.02 24.09 24.59 24.77 0.00 19.44 14.26 Tobacco 17.66 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Food Producers 15.11 FT 30 hourly changes Health Care 14.86 8 9 10 11 12 13 14 15 16 High Low Household Goods & Ho 13.85 2715.7 2717 2711.6 2700 2690 2690.4 2698.3 2701.1 2697.7 2719.9 2687.9 Pharmace & Biotech 13.82 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Electricity 12.72 Life Insurance 12.59 Travel & Leisure 10.23 Consumer Goods 10.13 Utilities 9.95 Dec 10 Dec 09 Mnth Ago Dec 11 Dec 10 Mnth Ago Gas Water & Multi 9.19 Australia 99.90 100.46 102.35 Sweden 81.03 81.31 81.50 Financial Services 9.17 Canada 101.17 101.58 101.99 Switzerland 147.21 147.36 146.65 General Retailers 8.43 Denmark 108.62 108.53 107.96 UK 87.36 87.26 87.66 Fixed Line Telecomms 7.83 Japan 122.80 122.53 126.64 USA 95.80 95.71 94.47 Equity Invest Instr 5.83 New Zealand 123.45 123.59 121.35 Euro 93.89 93.89 92.95 Norway 92.52 93.47 96.51 Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

FX: EFFECTIVE INDICES

Forestry & Paper Software & Comp Serv Personal Goods Nonlife Insurance Financials Media Beverages Chemicals FTSE 250 Index FTSE All{HY-}Share Index FTSE 100 Index Real Est Invest & Se NON FINANCIALS Index Consumer Services FTSE SmallCap Index Leisure Goods Support Services Industrial Metals &

High 21.68 0.42 6.00 0.40 515.50

Low 21.68 0.41 5.50 0.35 502.50

Stock Ceramic Fuel Cells Ltd Ferrum Crescent Ltd Plaza Centers NV Scotgold Resources Ltd UBM PLC

+or0.02 -0.875 -0.025 4.50

Telecommunications Construct & Material Technology Automobiles & Parts Banks Mobile Telecomms Industrials Tech Hardware & Eq Basic Materials Aerospace & Defense Mining Oil & Gas Producers Oil & Gas Industrial Eng Electronic & Elec Eq Industrial Transport Oil Equipment & Serv Food & Drug Retailer

-2.10 -2.72 -2.93 -4.45 -5.22 -5.72 -7.05 -8.41 -9.79 -10.28 -11.30 -12.09 -12.44 -14.20 -15.00 -16.20 -21.77 -36.00

FTSE GLOBAL EQUITY INDEX SERIES Dec 11 Regions & countries FTSE Global All Cap FTSE Global All Cap FTSE Global Large Cap FTSE Global Mid Cap FTSE Global Small Cap FTSE All-World FTSE World FTSE Global All Cap ex UNITED KINGDOM In FTSE Global All Cap ex USA FTSE Global All Cap ex JAPAN FTSE Developed FTSE Developed All Cap FTSE Developed Large Cap FTSE Developed Europe Large Cap FTSE Developed Europe Mid Cap FTSE Dev Europe Small Cap FTSE North America Large Cap FTSE North America Mid Cap FTSE North America Small Cap FTSE North America FTSE Developed ex North America FTSE Japan Large Cap FTSE Japan Mid Cap FTSE Global wi JAPAN Small Cap FTSE Japan FTSE Asia Pacific Large Cap ex Japan FTSE Asia Pacific Mid Cap ex Japan FTSE Asia Pacific Small Cap ex Japan FTSE Asia Pacific Ex Japan FTSE Emerging All Cap FTSE Emerging Large Cap FTSE Emerging Mid Cap FTSE Emerging Small Cap FTSE Emerging Europe FTSE Latin America All Cap FTSE Middle East and Africa All Cap FTSE Global wi UNITED KINGDOM All Cap In FTSE Global wi USA All Cap FTSE Europe All Cap FTSE Eurobloc All Cap FTSE RAFI All World 3000 FTSE RAFI US 1000 FTSE EDHEC-Risk Efficient All-World FTSE EDHEC-Risk Efficient Developed Europe

No of stocks 7535 6906 1349 1669 4517 3018 2540 7206 5554 6291 2113 5641 901 201 318 704 332 398 1496 730 1383 174 301 769 475 475 446 1319 921 1894 448 457 989 86 245 210 329 1981 1370 629 3030 1030 3018 519

US $ indices 466.55 479.12 415.33 608.90 639.73 273.33 483.03 477.79 449.38 479.72 435.73 456.22 405.24 360.27 503.14 688.79 437.60 659.70 668.39 293.49 236.24 308.92 423.72 466.04 126.21 614.28 802.07 532.29 484.15 688.94 652.91 862.12 709.06 341.73 897.72 752.47 357.17 499.85 405.13 377.12 5858.13 9089.11 316.49 281.75

Day % -1.3 -1.4 -1.3 -1.3 -1.5 -1.3 -1.3 -1.4 -0.9 -1.3 -1.4 -1.4 -1.3 -0.5 -0.3 0.0 -1.7 -1.9 -2.2 -1.7 -0.8 -2.0 -1.9 -1.1 -2.0 -0.3 -0.1 0.1 -0.2 -0.5 -0.6 -0.4 -0.1 -0.6 -2.3 -1.0 -0.3 -1.7 -0.4 -0.4 -1.3 -1.7 -1.1 -0.3

Mth % -1.3 -1.7 -1.3 -1.1 -1.9 -1.2 -1.2 -1.2 -1.8 -1.4 -1.0 -1.1 -1.0 -0.2 1.3 1.0 -0.9 -1.9 -2.5 -1.0 -0.8 -0.2 0.6 -0.4 -0.1 -3.1 -2.6 -3.1 -3.0 -3.8 -4.4 -2.3 -1.9 -8.9 -10.2 -5.3 -2.5 -0.8 -0.1 2.1 -1.7 -1.2 -0.6 0.8

YTD Total % retn 1.3 622.47 2.5 628.29 1.8 565.83 0.8 779.21 -1.3 795.07 1.6 384.49 1.6 912.40 2.1 629.16 -5.5 633.22 1.7 645.36 1.9 585.56 1.5 606.90 2.1 551.35 -7.4 548.92 -5.9 703.18 -8.1 938.45 8.8 562.90 5.5 800.28 1.4 788.56 8.3 387.28 -6.3 356.98 -5.0 378.48 -1.4 503.28 -2.6 570.48 -4.3 173.87 0.0 888.46 1.0 1124.48 -2.9 735.98 0.1 744.75 -1.4 953.73 -1.6 908.85 -1.0 1190.56 -0.8 947.57 -25.3 479.11 -15.8 1285.80 2.6 1090.45 -8.7 544.34 8.4 627.29 -7.8 599.84 -8.6 566.18 -0.9 7158.51 7.7 11202.07 4.7 415.80 -4.3 400.68

YTD Gr Div Dec 11 No of US $ Day Mth YTD Total YTD Gr Div % Yield Sectors stocks indices % % % retn % Yield 176 382.62 -2.7 -2.7 -19.4 563.23 -16.9 3.7 3.7 2.4 Oil & Gas 121 348.50 -2.6 -2.6 -19.5 521.45 -17.0 3.8 4.8 2.3 Oil & Gas Producers 46 395.81 -3.2 -3.2 -18.9 533.37 -16.9 3.4 4.4 2.5 Oil Equipment & Services 270 438.16 -1.3 -1.3 -10.3 622.98 -8.0 2.8 2.7 2.0 Basic Materials 115 625.70 -1.3 -1.3 -2.3 896.92 0.1 2.4 0.4 1.9 Chemicals 18 208.13 -0.3 -0.3 -1.4 324.23 1.7 2.9 4.1 2.4 Forestry & Paper 75 421.72 -2.1 -2.1 -16.8 600.46 -14.9 2.6 4.0 2.4 Industrial Metals & Mining 4.4 2.3 Mining 62 571.01 -1.1 -1.1 -22.5 800.92 -20.0 4.1 -2.8 2.9 Industrials 533 311.13 -1.5 -1.5 -1.6 422.59 0.5 2.1 4.2 2.4 Construction & Materials 114 425.79 -0.9 -0.9 -5.6 606.04 -3.6 2.2 4.3 2.4 Aerospace & Defense 28 490.19 -2.5 -2.5 -0.1 661.24 1.9 2.0 3.9 2.3 General Industrials 55 215.49 -1.0 -1.0 -4.0 312.49 -1.7 2.6 4.7 2.5 Electronic & Electrical Equipment 67 326.82 -1.7 -1.7 1.7 411.05 3.5 1.7 -4.2 3.4 Industrial Engineering 103 619.88 -1.9 -1.9 -6.7 826.92 -4.8 2.1 -3.6 2.6 Industrial Transportation 95 580.22 -1.6 -1.6 8.3 787.27 10.6 2.0 -6.0 2.4 Support Services 71 266.78 -0.9 -0.9 -1.6 349.39 0.6 2.1 11.1 2.1 Consumer Goods 405 406.94 -1.1 -1.1 1.5 564.00 3.9 2.4 7.2 1.7 Automobiles & Parts 97 391.56 -2.0 -2.0 -4.2 521.44 -2.0 2.2 2.7 1.6 Beverages 47 540.64 -0.6 -0.6 2.8 759.59 5.4 2.5 10.4 2.0 Food Producers 100 553.05 -0.8 -0.8 4.0 790.99 6.5 2.2 -3.5 2.9 Household Goods & Home Construction 45 390.77 -1.0 -1.0 6.4 539.37 9.2 2.4 -3.1 1.8 Leisure Goods 26 126.58 -1.5 -1.5 -1.1 159.63 0.1 1.1 0.1 1.4 Personal Goods 77 586.04 -0.5 -0.5 -2.7 780.06 -0.9 2.0 -1.0 1.6 Tobacco 13 1110.11 -0.9 -0.9 8.8 2063.53 13.0 4.1 160 442.56 -1.2 -1.2 19.1 604.71 21.4 1.8 -2.5 1.7 Health Care 3.0 3.0 Health Care Equipment & Services 58 584.16 -1.7 -1.7 20.8 662.46 22.1 1.1 3.6 2.6 Pharmaceuticals & Biotechnology 102 343.31 -1.0 -1.0 18.6 486.21 21.3 2.0 -0.4 2.7 Consumer Services 382 363.44 -1.0 -1.0 2.3 463.86 4.0 1.7 3.1 3.0 Food & Drug Retailers 56 288.80 -1.0 -1.0 1.8 383.24 4.0 2.1 1.4 3.0 General Retailers 119 463.38 -1.1 -1.1 1.7 578.26 3.4 1.6 1.3 3.1 Media 88 292.93 -1.0 -1.0 5.1 373.96 6.5 1.5 1.6 2.7 Travel & Leisure 119 352.40 -1.0 -1.0 -0.1 454.09 1.7 1.8 1.7 2.7 Telecommunication 95 168.18 -0.9 -0.9 -4.5 283.88 -0.6 4.2 -22.6 3.7 Fixed Line Telecommuniations 45 137.49 -0.9 -0.9 -0.5 252.49 4.1 4.8 -13.2 4.0 Mobile Telecommunications 50 182.93 -0.8 -0.8 -8.7 281.89 -5.4 3.4 161 264.75 -0.9 -0.9 8.1 466.65 12.3 3.7 5.5 2.7 Utilities 112 280.25 -0.8 -0.8 11.9 489.48 16.2 3.7 -5.6 3.5 Electricity 49 295.90 -0.9 -0.9 2.8 533.38 6.8 3.8 10.4 1.9 Gas Water & Multiutilities 658 215.89 -1.0 -1.0 1.9 325.56 4.8 2.7 -4.9 3.2 Financials 241 201.90 -1.1 -1.1 -2.2 323.31 0.9 3.1 -5.8 3.0 Banks 69 213.97 -0.8 -0.8 7.0 290.87 9.5 2.1 1.8 2.9 Nonlife Insurance 48 207.84 -1.0 -1.0 0.5 306.93 3.1 2.5 10.0 2.3 Life Insurance 136 231.43 -1.2 -1.2 6.5 301.98 8.4 1.7 6.9 2.2 Financial Services 178 170.42 -1.5 -1.5 15.0 199.75 16.9 1.6 -1.7 2.7 Technology Software & Computer Services 78 267.72 -1.4 -1.4 5.8 303.77 7.0 1.1 Technology Hardware & Equipment 100 139.10 -1.6 -1.6 23.6 166.74 26.3 1.9 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/ mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2, WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence.

UK COMPANY RESULTS closing Price p 21.68 0.42 5.50 0.40 515.50

5.35 5.06 3.15 3.11 2.76 2.07 1.88 1.80 0.42 -0.07 -0.09 -0.14 -1.04 -1.22 -1.43 -1.67 -1.89 -2.07

FTSE 100 SUMMARY

Company Abzena Darty Lowland Investment Co Marechale Capital Octopus VCT 3 Octopus VCT 4 Polar Capital Holdings Science in Sport Sports Direct International Sunrise Resources SuperGroup Titon Holdings Versarien

FTSE 100

Closing Day's Price Change FTSE 100

3i Group PLC Aberdeen Asset Management PLC Admiral Group PLC Aggreko PLC Anglo American PLC Antofagasta PLC ARM Holdings PLC Ashtead Group PLC Associated British Foods PLC AstraZeneca PLC Aviva PLC Babcock International Group PLC BAE Systems PLC Barclays PLC BG Group PLC BHP Billiton PLC BP PLC British American Tobacco PLC British Land Company PLC British Sky Broadcasting Group PLC BT Group PLC Bunzl PLC Burberry Group PLC Capita PLC Carnival PLC Centrica PLC Coca-Cola HBC AG Compass Group PLC CRH PLC Diageo PLC Direct Line Insurance Group PLC Dixons Carphone PLC easyJet PLC Experian PLC Fresnillo PLC Friends Life Group Ltd G4S PLC GKN PLC GlaxoSmithKline PLC Glencore PLC Hammerson PLC Hargreaves Lansdown PLC HSBC Holdings PLC IMI PLC Imperial Tobacco Group PLC InterContinental Hotels Group PLC International Consolidated Airlines Group SA Intertek Group PLC Intu Properties PLC ITV PLC Johnson Matthey PLC

434.90 423.90 1262 1445 1173 713.50 959.00 1172 3151 4688 487.10 1079 454.90 237.25 843.70 1361 398.80 3510.5 758.00 918.00 411.10 1760 1621 1029 2789 274.40 1328 1062 1491 1877.5 288.90 435.90 1668 1028 745.00 367.30 279.20 335.70 1393 294.85 604.00 953.00 615.30 1213 2789 2527 462.00 2220 335.00 208.30 3283

-14.20 -14.70 5.00 -5.00 -34.50 -13.00 -0.50 -3.00 -50.00 5.00 -6.40 -33.00 -6.10 -0.45 -28.70 -25.50 -0.80 -72.50 -2.00 1.00 -34.00 -24.00 -9.00 45.00 -3.50 -5.00 -13.00 -4.00 -25.50 -1.10 6.30 25.00 -6.00 -25.00 -4.80 0.80 0.70 7.00 -11.45 -2.00 4.00 -5.60 -16.00 -17.00 13.00 1.50 27.00 -2.80 -1.00 -22.00

Closing Day's Price Change

Kingfisher PLC Land Securities Group PLC Legal & General Group PLC Lloyds Banking Group PLC London Stock Exchange Group PLC Marks and Spencer Group PLC Meggitt PLC Mondi PLC Morrison (Wm) Supermarkets PLC National Grid PLC Next PLC Old Mutual PLC Pearson PLC Persimmon PLC Petrofac Ltd Prudential PLC Randgold Resources Ltd Reckitt Benckiser Group PLC Reed Elsevier PLC Rio Tinto PLC Rolls-Royce Holdings PLC Royal Bank Of Scotland Group PLC Royal Dutch Shell PLC (A) Royal Dutch Shell PLC (B) Royal Mail PLC RSA Insurance Group PLC SABMiller PLC Sage Group PLC Sainsbury (J) PLC Schroders PLC Severn Trent PLC Shire PLC Smith & Nephew PLC Smiths Group PLC Sports Direct International PLC SSE PLC St. James's Place PLC Standard Chartered PLC Standard Life PLC Tesco PLC Travis Perkins PLC TUI Travel PLC Tullow Oil PLC Unilever PLC United Utilities Group PLC Vodafone Group PLC Weir Group PLC Whitbread PLC Wolseley PLC WPP PLC

322.20 1146 246.60 78.20 2155 477.50 491.40 1067 174.80 900.50 6545 186.50 1170 1573 724.00 1501.5 4261 5150 1079 2748 831.50 382.90 2045 2102 397.90 437.00 3346.5 438.90 226.30 2643 1915 4565 1050 1058 666.00 1620 805.50 926.60 406.10 171.30 1786 437.60 372.80 2654 872.00 222.95 1695 4605 3608 1320

0.70 -13.00 5.30 -0.40 -43.00 2.50 -5.80 -10.00 -1.90 -6.50 75.00 -0.90 -14.00 14.00 7.00 -1.50 -110.00 5.00 -10.00 -49.50 -24.50 -2.90 10.00 3.50 -1.10 -6.20 6.00 1.50 -0.10 -23.00 -33.00 136.00 -5.00 -30.00 -9.00 -16.00 -9.50 -7.40 -2.40 -4.40 -25.00 -5.60 -6.70 -6.00 -10.00 0.30 2.00 36.00 -15.00 -6.00

UK STOCK MARKET TRADING DATA Dec 11 Dec 10 Dec 09 Dec 08 Dec 05 Yr Ago SEAQ Bargains 6341.00 6663.00 5958.00 5782.00 5782.00 5782.00 Order Book Turnover (m) 66.97 48.48 71.16 54.48 54.48 54.48 Order Book Bargains 801194.00 824852.00 548553.00 673098.00 673098.00 673098.00 Order Book Shares Traded (m) 1381.00 1674.00 1150.00 1351.00 1351.00 1351.00 Total Equity Turnover (£m) 3895.43 3390.39 3644.16 3644.16 3644.16 Total Mkt Bargains 937254.00 - 677613.00 805020.00 805020.00 805020.00 Total Shares Traded (m) 3671.00 2396.00 3536.00 3536.00 3536.00 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable. (c) Market closed.

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

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

UK RECENT EQUITY ISSUES Int Int Pre Int Pre Pre Int Int Int Pre Int Pre Int

Turnover 0.783 2.441 1588.4 1644.4 0.245 41.803 4.919 1432.898 208.2 19.256 2.479

0.434 31.646 3.997 1345.102 192.1 15.74 1.081

Pre-tax 2.63L 2.97L 8.6L 5.5L 87.301 19.741 0.019 0.046L 0.122 0.147 0.12 0.147 10.085 11.592 0.378L 0.78L 149.732 143.064 0.924L 0.7L 9.9 17.2 0.505 1.333 0.368L 0.296L

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

EPS(p) 7.047L 0.008L 39.4 0.08L 1.6 1.6 10.55 3L 19.4 0.17L 17.2 8.52 0.28L

2.5L 0.033L 36.7 0.04 1.3 1.3 9.53 2L 18.6 0.25L 2.6 2.87 0.52L

Div(p) 0.875 10 5 5 5.5 1.5 -

0.875 9 5 5 4 1 -

Pay day Apr 1 -

Total 3.5 19 5 5 26.5 2.5 -

3.5 17.5 5 5 15 2 -

Issue date 12/11 12/11 12/11 12/08 12/08 12/04 12/04 12/02 11/13 11/12 11/10 11/07 11/06 11/03

Issue price(p) 126.00 30.00 100.00 135.00 267.00 6.00 130.00 128.00 283.00 160.00 120.00 134.00 116.00 236.00

Sector

AIM AIM AIM AIM AIM AIM AIM AIM AIM AIM

Stock code

CHT MTPH PCGE TPOP CHOC VM/ MAB1 HAV FEVR QTX NKTN

Stock Focusrite PLC Management Resource Solutions PLC Quantum Pharma PLC Constellation Healthcare Technologies Inc Midatech Pharma PLC PCG Entertainment PLC People's Operator (The) PLC United Cacao Ltd SEZC Virgin Money Holdings (UK) PLC Mortgage Advice Bureau (Holdings) PLC Haversham Holdings PLC Fevertree Drinks PLC Quartix Holdings PLC Nektan PLC

§Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir For a full explanation of all the other symbols please refer to London Share Service notes.

Close price(p) 136.50 29.50 140.00 266.50 5.00 131.50 175.00 283.50 176.00 128.00 173.50 167.50 165.00

+/-2.50 -0.38 0.40 -6.25 0.50 1.00 0.00 2.50 -1.00 -7.50

High 139.00 31.90 0.00 285.00 6.70 145.00 207.50 291.00 178.38 130.00 184.00 181.50 252.00

Low 134.00 0.00 0.00 265.00 5.37 130.00 128.10 279.00 160.00 120.00 160.00 117.00 160.00

Mkt Cap (£m) 7927.2 968.1 7786.1 7407.2 5153.5 10138.5 3225.3 125193.8 8889.7 3205.3 19994.3 7820.9 3502.7

★

Friday 12 December 2014

23

FINANCIAL TIMES

MARKET DATA FT500: THE WORLD'S LARGEST COMPANIES Stock

52 Week High Low

Price Day Chg

Argentina ($a) YPF 300.50 3.50 Australia (A$) ANZ♦ 31.21 -0.28 BHPBilltn 29.00 -0.39 CmwBkAu 82.19 -0.16 CSL 85.76 1.06 NatAusBk♦ 32.09 -0.21 Telstra 5.69 0.07 Wesfarmers♦ 41.60 -0.13 Westpc♦ 32.24 -0.28 WoodsdPet 34.19 -0.71 Woolworths 29.99 0.11 Belgium (€) AnBshInBv 91.41 -0.30 Brazil (R$) Ambev 15.86 0.06 BncBrasil 24.37 0.44 BncoDoBrasl 31.67 0.02 Bradesco 34.69 0.28 Cielo 41.69 0.09 ItauHldFin 31.29 -0.42 Itausa♦ 9.51 -0.18 Petrobras 9.88 -0.23 SntnderBras♦ 7.00 -0.20 Vale 19.56 -0.37 Canada (C$) BCE♦ 51.98 0.48 BkMontrl 78.24 0.58 BkNvaS 64.78 0.67 Brookfield♦ 56.04 0.82 CanadPcR 203.47 1.59 CanImp 100.55 0.34 CanNatRs♦ 34.51 0.67 CanNatRy♦ 75.24 1.62 Enbridge 56.15 1.03 GtWesLif♦ 32.68 0.45 HuskyE♦ 22.50 0.48 ImpOil♦ 49.23 1.14 Manulife♦ 21.96 0.37 Potash 40.50 0.08 RylBkC 79.01 0.40 Suncor En♦ 32.94 0.53 ThmReut♦ 45.15 0.61 TntoDom 52.71 0.25 TrnCan 53.04 1.20 ValeantPh 161.55 3.08 China (HK$) AgricBkCh 3.71 -0.04 Bk China 4.10 -0.06 BkofComm 6.70 -0.11 ChConstBk 6.07 -0.04 ChinaCitic 5.79 -0.09 ChinaLife 27.00 -0.15 ChinaMBank 16.82 -0.10 ChinaMob 91.20 -0.55 ChinaPcIns 32.65 -0.90 ChMinsheng 9.06 -0.18 ChShenEgy 22.65 -0.10 ChUncHK 10.64 -0.02 In&CmBkCh 5.33 -0.03 IndstrlBk RMB 13.25 -0.07 Kweichow RMB 175.89 -4.03 PetroChina 8.07 -0.09 PingAnIns 73.70 0.60 SaicMotor RMB 22.47 -0.52 ShgPdgBk RMB 13.05 -0.11 Sinopec 6.10 -0.07 Denmark (kr) DanskeBk 168.40 0.80 MollerMrsk 11140 -510.00 NovoB 275.80 -0.40 Finland (€) Nokia 6.55 -0.05 SampoA 39.28 0.35 France (€) Airbus Grpe 41.32 -1.86 AirLiquide 98.97 -0.83 AXA 19.07 0.10 BNP Parib 49.45 -0.01 ChristianDior♦ 148.75 -1.40 Cred Agr 10.72 -0.08 Danone 55.41 -0.45 EDF 23.59 -0.20 Essilor Intl 89.25 -0.09 GDF Suez 19.45 -0.09 Kering 158.85 -1.30 LOreal 135.40 -0.70 LVMH 141.00 -0.10

Yld

P/E MCap m

561.00

275.00

35.07 39.79 83.92 88.66 36.00 5.80 46.69 35.99 44.23 38.92

28.84 28.40 72.14 63.77 31.50 4.92 40.33 30.00 33.72 29.45

5.72 4.43 4.89 1.42 6.27 5.26 4.86 5.67 6.34 4.76

94.64

69.14

1.81 21.40 181848.84

17.85 38.19 35.98 41.30 47.10 38.74 11.78 23.50 8.50 36.11

14.99 18.61 21.54 27.13 30.98 23.91 7.73 9.60 5.50 19.13

1.95 5.72 3.93 1.01 3.17 1.49 2.11 5.85 3.95 6.07

19.67 5.03 18.78 9.88 19.86 8.15 7.44 6.06 12.71 -9.82

94038.35 26353.01 23903.7 27539.87 24736.32 32709.81 8442.73 27749.79 10223.02 23748.29

54.24 85.71 74.93 58.08 247.56 107.37 49.57 86.00 65.13 33.98 37.31 57.96 23.09 41.82 83.87 47.18 46.50 58.20 63.86 170.45

44.75 67.04 59.92 39.51 155.02 85.03 33.42 57.07 43.24 28.61 21.67 44.99 18.91 32.35 67.65 31.90 36.86 47.23 46.10 111.97

4.68 3.95 3.96 1.33 0.69 3.93 2.53 1.28 2.43 3.76 5.33 1.06 2.48 3.86 3.61 2.85 3.25 3.50 3.58 -

17.50 11.82 11.41 12.11 32.37 12.75 12.04 21.10 62.61 12.56 10.90 10.05 10.17 22.76 13.13 15.89 81.49 12.70 22.07 97.85

37277.46 44021.48 68389.94 30520.81 30258.69 34614.34 32690.53 53275.57 41232.01 28307.14 19195.97 36191.77 35397.28 29141.39 98811.03 41861.46 31471.5 84312.8 32566.41 46739.75

3.95 4.35 7.13 6.42 6.17 28.80 17.84 102.20 37.25 9.66 24.95 14.22 5.69 14.27 186.62 11.70 77.30 24.30 14.16 8.23

3.04 3.03 4.53 4.89 3.60 19.72 12.12 63.65 23.55 6.73 19.12 9.03 4.33 8.60 118.01 7.31 55.60 12.22 8.39 5.73

5.89 5.84 4.74 6.04 5.38 1.22 4.51 3.32 1.35 1.37 4.42 1.87 5.40 3.05 2.18 4.94 1.13 4.69 4.44 4.38

5.42 14712.52 5.78 44232 6.30 30263.55 5.45 188270.8 5.44 11116.68 21.95 25919.92 5.97 9962.12 13.92 239966.27 23.86 11690.17 4.96 8104.24 8.99 9931.03 17.09 32838.47 5.59 59682.19 5.59 34641.05 12.90 32457.42 9.32 21966.49 13.68 35406.3 9.32 33558.03 5.44 31467.96 9.52 20078.31

171.20 15390 286.20

119.10 10770 189.70

1.17 14.16 28277.73 2.69 14.92 4076.13 1.16 28.42 22614.48

6.98 39.98

4.89 33.21

1.66 26.70 30351.09 4.15 14.39 27179.22

57.33 102.75 20.64 61.82 157.45 12.22 57.44 29.90 93.26 21.19 167.70 139.10 147.20

40.55 83.45 16.43 43.28 126.10 8.75 48.33 21.21 70.51 16.02 136.95 114.55 121.00

Stock

Orange 13.99 PernodRic 93.10 Safran 50.52 Sanofi 75.18 Schneider 61.59 SocGen 36.52 StGobn 32.96 Total SA 42.57 UnibailR 205.30 Vinci 44.24 Vivendi 20.29 Germany (€) Allianz 137.75 BASF 72.40 Bayer 115.80 BMW 90.31 Continental 172.65 Daimler 68.31 Deut Bank 25.56 Deut Tlkm 13.03 DeutsPost 26.78 E.ON 14.59 Fresenius 43.27 HenkelKgaA 79.87 Linde 151.75 MuenchRkv 164.40 RWE 28.08 SAP 57.09 Siemens 93.81 Volkswgn 182.40 Hong Kong (HK$) AIA 43.00 BOC Hold 26.20 ChngKong 132.80 Citic Ltd 13.58 Citic Secs 27.15 CNOOC 10.06 Galaxy Enter 47.00 HangSeng 127.30 HK Exc&Clr 177.10 Hutchison 90.50 SandsCh 40.10 SHK Props 113.70 Tencent 113.40 India (Rs) Bharti Airtel 343.30 HDFC Bk 933.60 Hind Unilevr 796.05 HsngDevFin 1092.6 ICICI Bk 347.95 Infosys 1921.05 ITC 396.60 OilNatGas 349.45 RelianceIn 906.15 SBI NewA 314.05 SunPhrmInds 834.80 Tata Cons 2492.15 Tata Motors 503.90 Wipro 546.30 Indonesia (Rp) Astra Int 7100 Bk Cent Asia 13275 Telekom Idn 2835 Israel (ILS) TevaPha 223.30 Italy (€) Enel 3.77 ENI 14.38 Generali 16.93 IntSPaolo 2.50 Luxottica 43.98 Tenaris 12.33 Unicred 5.65 Japan (¥) AstellasPh 1688.5 Bridgestne 4190 Canon 3807 CntJpRwy 16960 Denso 5649 EastJpRwy 8691 Fanuc 19850 FastRetail 41910 Fuji Heavy Ind 4304 Hitachi 898.60 HondaMtr 3568 JapanTob 3550 KDDI 7643 Keyence 53810 MitsbCp 2174 MitsubEst 2546.5

0.38 12.65 138135.52

1.79 2.62 4.31 3.00 1.59 3.23 2.66 5.38 1.07 7.83 2.40 1.87 2.23

11.83 71008.86 10.06 76872.12 15.00 109982.77 28.60 33604.12 14.32 62672.74 15.08 57414.49 27.86 38583.46 13.45 82729.35 12.26 23249.65 14.61 31263.22

19.73 40150.48 20.40 42247.37 9.06 57664.02 -60.93 76172.07 17.42 32862.86 13.04 34182.89 30.29 41142.04 12.24 54268.83 19.08 23255.89 -5.37 56830.4 23.38 24833.23 27.42 100808.59 20.75 88636.16

52 Week High Low

Price Day Chg

8.39 78.82 43.24 68.29 52.59 32.44 29.51 40.57 174.25 39.98 17.26

5.81 1.82 2.25 3.68 3.78 2.71 1.91 5.93 4.40 4.06 4.87

1.05 0.23 0.15 0.52 1.75 0.27 0.23 0.12 0.52 -0.18 0.18 -0.26 -0.30 1.60 -0.41 1.29 0.70 2.95

139.75 88.28 121.40 96.10 183.25 71.27 40.00 13.88 28.47 15.46 44.31 80.37 158.45 170.40 32.98 63.30 101.35 197.95

115.05 64.27 91.31 74.74 136.85 55.10 22.66 10.07 21.55 12.23 34.52 66.67 137.05 141.10 24.75 50.08 80.17 147.35

3.80 10.16 77950.13 3.68 13.57 82341.11 1.79 26.51 118575.71 2.84 10.29 67319.05 1.07 16.30 42758.13 3.25 9.86 90489.03 2.04-223.60 43638.63 2.84 25.75 73185.73 2.95 15.53 40105.73 4.06 -53.70 36137.88 0.71 21.72 28960.16 1.11 12.73 25693.6 1.95 25.13 34884.31 4.36 8.02 34656.21 2.60 -6.84 20015.18 1.27 21.01 86845.19 3.25 16.13 101814.31 1.62 12.48 66648.15

-0.90 -0.35 -2.60 -0.18 -2.05 -0.16 -0.90 0.30 -1.50 -0.50 -0.20 0.10 -2.10

45.65 27.95 152.00 16.88 33.95 15.88 84.50 133.00 189.00 113.50 68.00 120.20 134.90

34.65 21.50 111.80 9.35 13.72 9.82 42.95 117.60 112.80 90.00 38.70 83.40 91.80

0.93 3.54 2.41 2.37 0.68 5.18 3.97 1.84 2.33 3.96 2.70 0.21

29.17 66820.01 13.07 35737.05 7.76 39682.19 8.61 43630.13 30.88 4127.28 7.05 57946.15 19.29 25739.06 15.89 31398.5 48.77 26688.67 25.69 49777.16 17.20 41733.06 9.96 41409.16 39.71 137056.93

-10.00 420.00 2.20 965.90 -1.75 829.75 -7.45 1177.8 -4.10 366.05 -42.70 2201.1 1.60 400.00 -11.65 471.85 -26.40 1145.25 -1.90 326.95 1.50 932.50 -15.75 2839.7 -7.10 550.70 -5.85 621.90

281.90 616.80 537.20 755.00 188.72 1440 310.35 264.15 793.10 145.51 552.55 1995 332.10 474.70

0.98 0.72 1.42 1.25 2.58 1.66 1.30 2.74 1.02 0.93 0.29 1.29 0.38 1.43

34.53 26.51 44.43 21.22 17.55 18.72 36.39 11.48 11.69 14.89 91.53 23.22 8.54 16.35

8050 13575 3010

6050 9250 2025

2.54 14.33 23276.83 0.39 20.73 26239.83 2.37 19.50 23141.66

-0.50

230.70

135.60

2.09 18.25 54090.98

0.01 -0.09 0.08 0.01 -0.08 0.11 0.06

4.49 20.46 17.70 2.66 44.62 18.29 6.89

2.98 14.27 14.40 1.64 34.74 12.01 5.01

2.72 6.21 2.10 1.58 1.17 1.90 -

12.72 10.05 17.19 -9.59 36.64 11.96 -2.62

43896.85 64710.52 32637.68 49053.63 26220.82 18024.02 40561.46

-25.00 -33.50 14.50 220.00 -41.00 10.00 -265.00 -495.00 29.00 10.60 -42.00 -75.50 -75.00 610.00 4.00 -23.50

1842 4458.5 3931 17960 5995 9065 21440 45350 4617 939.90 4330 4193 7834 58000 2356 3160

1062 3328 2889 10655 4223 7105 16105 30950 2380 660.00 3239 2992 5000 36095 1767 2151.5

4.20 1.41 3.23 0.60 1.56 1.16 1.01 0.93 1.15 1.02 2.03 2.37 1.65 0.20 2.63 0.40

38.72 13.42 16.15 12.03 16.45 16.22 23.74 52.73 14.49 40.96 9.84 14.93 15.50 31.06 8.59 45.24

31949.36 28526.32 42515.59 29253.62 41816.16 28744.41 39807.76 37223.03 28212.8 36367.32 54116.86 59449.04 57401.77 27394.72 30098.98 29646.2

52 Week High Low

Price Day Chg

MitsubishiEle 1440 -24.50 Mitsui 1565 -33.50 MitsuiFud 3225.5 -75.50 MitUFJFin 670.00 -10.40 Mizuho Fin 203.60 -1.40 Murata Mfg 12860 -145.00 NipponTT 6330 -116.00 Nissan Mt 1087.5 -3.50 NpnStlSmMtl 302.30 -7.60 NTTDCMo 1859.5 8.50 Panasonic 1453 -27.00 Seven & I 4294.5 -57.00 ShnEtsuCh 8159 54.00 Softbank 7311 -110.00 SumitomoF 4317 -75.00 Takeda Ph 4943.5 -78.50 TokioMarine 3866 7.00 Toyota 7481 -42.00 Malaysia (RM) Maybank 8.87 -0.03 Mexico (Mex$) AmerMvl 15.88 0.33 FEMSA UBD 122.96 1.73 GrupoMexico 43.46 -0.21 WalMrtMex 29.00 0.12 Netherlands (€) ArcelorMit 9.13 -0.13 ASML Hld 86.99 -0.23 Heineken 60.48 -0.44 ING 11.21 -0.11 Philips 23.88 0.23 Unilever 32.64 0.04 Norway (Kr) DNB 113.60 -0.30 Statoil 123.60 1.10 Telenor 150.10 0.90 Qatar (QR) Inds Qatar 182.00 2.00 QatarNtBk 205.00 Russia (RUB) Gzprm neft 134.01 -2.08 Lukoil 2223.4 -72.60 Magnit 11000 -350.00 Novatek 424.70 -3.30 Nrlsk Nckl 9368 -160.00 Rosneft 208.00 -5.50 SbankR 65.95 -1.82 Surgnfgz 27.22 -1.09 Saudi Arabia (SR) AlRajhi Bk 54.50 0.94 SaudiBasic 81.75 -0.31 SaudiTelec 63.75 1.19 Singapore (S$) DBS 19.80 -0.20 Jard Str US$ 33.30 -0.38 JardnMt US$ 57.99 -0.41 OCBC 10.48 0.05 SingTel 3.98 0.05 UOB 24.55 -0.13 South Africa (R) MTN Grp 209.00 -5.56 Naspers N 1374.64 -14.37 Sasol 394.46 -7.50 South Korea (KRW) HyundaiMot 178000-2000.00 HyundMobis 243500-1500.00 KoreaElePwr 46000 -850.00 Naver 704000-7000.00 Posco 288500-4000.00 SK Hynix 47200-1650.00 SmsungEl 1305000-12000.00 Spain (€) BBVA 8.22 -0.02 BcoSantdr 7.01 0.03 CaixaBnk 4.32 -0.02 GasNatur 21.14 -0.17 Iberdrola♦ 5.62 -0.03 Inditex 23.30 0.95 Repsol 17.21 -0.20 Telefonica 12.92 0.01 Sweden (SKr) AtlasCpcoB 194.90 -1.00 Ericsson 92.70 -0.40 H&M 320.80 6.40 Investor 278.10 0.80 Nordea Bk 93.15 -0.60 SEB 98.95 -0.65 SvnskaHn 370.60 0.40 Swedbank 196.40 2.20

22016.8 35933.79 27620.96 27501.03 32301.11 35221.97 50605.39 47965.93 47018.61 37616.09 27739.57 78316.11 20588.19 21616.38

-50.00 -25.00 -

Week change change % 221.04 9789.3 3.25 13.6 1.90 9.2 33.35 9.2 0.87 7.0 11.06 6.7 0.13 5.6 3.73 5.5 2.79 5.1 6.42 4.6 0.29 4.5 0.72 4.5 3.15 4.5 4.48 4.4 1.94 4.2 3.11 4.1 2.57 4.0 4.50 4.0 0.22 3.8 0.47 3.7

Month change % -1.11 37.68 23.26 6.70 22.46 14.39 11.61 6.10 6.08 6.85 15.12 15.52 23.45 -1.60 10.15 4.95 15.71 9.47 6.68 23.70

INTEREST RATES: OFFICIAL Current 0.00-0.12 3.25 0.75 0.05 0.50 0.00-0.03 0.00-0.25

1550 1820 3830 700.30 240.00 13615 7120 1146.5 356.00 1934.5 1610 4592.5 8529 9320 5470 5140 4100 7873

1083 1307 2854.5 519.00 178.10 8192 5051 824.00 243.30 1515 1030 3611 5267 6655 3800 4337.5 2834 5205

10.20

8.83

17.64 135.75 49.59 35.75

12.39 108.90 36.77 27.71

Yld

P/E MCap m

0.40 3.46 0.57 2.26 2.89 0.85 2.39 2.43 1.39 2.72 0.81 1.44 1.03 0.46 2.44 3.06 1.68 1.97

24.91 25889.39 7.46 23541.36 33.13 26775.85 8.65 79485.6 11.75 41611.1 24.50 24255.96 12.20 60246.95 9.91 41164.5 10.93 24054.44 17.25 67962.13 61.41 29844.14 19.82 31874.95 28.06 29519.87 12.19 73499.35 7.57 51113.44 41.43 32689.83 11.94 24909.83 11.53 214100.63

9.17 11.85 23690.67 1.44 0.86 2.46 0.95 1.71 0.59 1.27 3.14

16.18 25.89 12.01 18.08

74988.39 29948.36 23029.74 34598.75

13.40 89.15 64.00 11.95 28.31 34.05

9.01 57.51 44.14 8.93 20.69 26.97

-15.40 18823.55 28.36 47117.45 25.31 43136.54 12.31 53531.29 32.53 27642.11 17.89 122255.38

126.90 195.80 158.20

98.10 120.80 123.90

1.96 7.82 25426.9 6.26 7.88 54159.23 5.12 31.20 31138.84

202.90 237.00

164.00 160.00

5.85 17.82 30238.37 3.31 14.28 39392.69

154.21 2593.8 12498 501.30 10035 259.00 102.92 31.68

114.00 1.49 56953.26 1715 5.53 33950.31 6565.3 1.70 16.82 18673.5 303.60 1.44 8.06 23149.8 4981 10.13 36.28 26613.23 204.30 8.44 2.75 39574.34 62.61 2.64 25557.87 24.13 2.73 1.74 17457.86

79.50 136.50 76.50

53.25 76.75 52.25

1.78 13.32 23595.59 6.52 10.02 65341.62 3.04 10.88 33969.66

20.03 38.10 64.60 10.53 4.08 24.70

15.65 30.06 49.34 9.05 3.42 19.40

2.93 0.70 2.22 3.29 4.22 2.85

263.44 1603.97 652.99

190.01 983.25 390.00

254000 323500 50200 880000 363500 52400 1495000

149000 226000 31300 643000 268500 34800 1078000

0.87 0.70 0.17 0.08 2.51 0.89

4.41 35617.86 10.21 21132.53 10.03 26034.51 49.45 19055.25 20.72 22849.49 10.19 30704.94 8.02 155252.18

9.99 7.96 5.00 24.45 5.97 24.20 21.07 13.43

8.14 6.02 3.45 17.63 4.39 19.29 15.82 10.76

0.76 7.17 0.90 3.31 2.74 1.29 4.39 4.53

-56.74 62776.34 15.50 109250.21 46.73 30235.21 13.69 26188.5 16.88 43559.77 30.58 89900.08 17.99 27321.45 13.69 72808.29

204.30 95.15 322.70 284.30 101.00 100.60 372.80 199.80

154.80 75.05 261.00 203.50 80.25 77.10 287.20 164.50

2.86 3.28 3.03 2.04 4.27 4.10 3.15 5.22

19.89 21.68 26.77 4.03 12.60 12.10 15.58 12.96

7.50 12.84 14.61 9.83 17.47 11.74

37313.48 37299.41 40057.68 31744.38 48236.81 29885.53

4.23 14.25 33162.48 0.26 48.48 49266.11 4.61 8.24 22038.28

10067.2 36954.3 62026.25 16767.29 49845.52 28422.87 30008.61 24758.01

Last 0.12 3.25 0.75 0.15 0.50 0.03 0.00-0.75

Mnth Ago 0.00-0.25 3.25 0.75 0.05 0.50 0.00-0.10 0.00-0.25

Year Ago 0.00-0.25 3.25 0.75 0.5 0.50 0.00-0.10 0.00-0.25

Day 0.002 0.002 0.001

Change Week 0.005 -0.044 -0.001

Month 0.002 0.000 -0.002 -0.001 0.000 -0.002 0.000 0.000 0.000

One month 0.16080 0.01214 0.49819 -0.01100 0.07429 0.02200 0.50500 0.15000 -0.06500

Three month 0.23990 0.05857 0.55700 0.00400 0.11000 0.08300 0.57500 0.19000 0.02500

Six month 0.33770 0.14786 0.68113 0.05040 0.14514 0.17900 0.72500 0.26000 0.12500

One year 0.60260 0.29857 0.97775 0.15040 0.26757 0.32800

COMMODITIES Energy Price* Crude Oil† Dec 60.56 Brent Crude Oil‡ 64.58 RBOB Gasoline† Dec 1.64 Heating Oil† Dec 2.06 Natural Gas† Dec 3.73 Ethanol♦ Jan 1.69 Uranium Dec 37.75 Carbon Emissions Diesel Dec Unleaded Jan Base Metals (♠ LME 3 Months) Aluminium 1954.00 Alluminum Alloy 2040.00 Copper 6466.75 Lead 1999.00 Nickel 16242.00 Tin 20450.00 Zinc 2179.00 Precious Metals (PM London Fix) Gold 1216.25 Silver (US cents) 1698.00 Platinum 1230.00 Palladium 817.00 Bulk Commodities Iron Ore (Platts) 69.50 Iron Ore (The Steel Index) 68.80 GlobalCOAL RB Index 67.00 Baltic Dry Index 887.00

Day Week change change % change change % -7.50 -1.87 -42955.54 -99.1 -14.37 -1.03 -146125.36 -99.1 -5.56 -2.59 -21609.00 -99.0 -4.10 -1.16 -1446.15 -80.6 0.00 0.00 -75.00 -20.2 -1.86 -4.30 -6.85 -14.2 -72.60 -3.16 -349.60 -13.6 -1.09 -3.85 -4.05 -13.0 0.00 0.00 -1.32 -11.5 0.99 2.95 -4.34 -11.2 1.07 1.26 -10.54 -10.9 0.83 1.86 -5.57 -10.9 -0.37 -1.54 -2.84 -10.7 0.00 0.00 -3.89 -10.7 -0.31 -0.38 -9.75 -10.7 -3.30 -0.77 -50.20 -10.6 -350.00 -3.08 -1299.00 -10.6 0.00 0.00 -3.90 -10.3 0.00 0.00 -2.71 -10.2 0.44 1.66 -2.97 -10.0

Month change % -27.35 -1.83 -9.13 4.36 -30.27 -15.07 3.90 -4.96 -26.69 -37.05 -8.92 -17.36 -17.11 -16.31 -13.26 -4.58 -6.38 -16.15 -1.18 -18.91

www.ft.com/commodities

Change -0.61 0.07 -0.01 0.00 0.03 0.00 0.00 -7.75 30.00 49.75 -13.00 -108.00 128.00 -5.00 -12.75 -8.00 -14.00 8.00 0.00 -0.10 0.75 -24.00

Agricultural & Cattle Futures Corn♦ Wheat♦ Soybeans♦ Soybeans meal♦ Cocoa (ICE Liffe)X Cocoa (ICE US)♥ Coffee(Robusta)X Coffee (Arabica)♥ White SugarX Sugar 11♥ Cotton♥ Orange Juice♥ Palm Oil♣ Live Cattle♣ Feeder Cattle♣ Lean Hogs♣

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

Mar Jan Jan Dec Jan Feb

Price* 395.25 576.00 1035.25 370.30 1882.00 2898.00 1938.00 177.30 428.20 15.45 60.19 149.30 625.00 162.35 231.58 84.35

Change 1.50 -5.75 3.00 1.30 -56.00 -28.00 -37.00 -1.20 -0.02 0.59 1.25 14.25 -0.05 -1.23 -0.08

Dec 10 456.77 110.80 247.54 2925.79 337.80 17.24 6.65 0.03 1326.00

% Chg Month -4.85 -1.19 -7.82 -10.95 -7.41 -6.34 -66.67 -5.82

% Chg Year -12.04 -23.84 -15.70 15.85 -75.00 -21.77

Mar Mar Jan Jan Mar Mar Jan Mar

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

Price Day Chg

52 Week High Low

TeliaSonera 52.10 0.25 53.85 43.98 Volvo 83.60 -0.85 105.70 71.00 Switzerland (SFr) ABB 20.60 -0.05 24.80 18.56 CredSuisse 25.46 0.01 30.21 23.12 Holcim 69.10 -0.20 86.05 59.50 Nestle 71.70 0.20 73.30 62.95 Novartis 92.10 0.35 94.25 67.45 Richemont 88.85 -0.20 94.75 72.65 Roche 292.90 3.60 295.80 231.20 SwatchGpI 453.10 -5.20 597.00 417.10 Swiss Re 83.70 0.75 86.55 69.25 Swisscom 578.50 8.50 587.50 447.60 Syngent 308.30 0.30 364.40 273.20 UBS 17.15 0.30 19.10 13.95 Zurich Fin 305.70 3.20 307.80 240.00 Taiwan (NT$) ChnghwTl 91.80 -0.30 99.00 86.20 HonHaiPrc 89.90 0.30 113.00 73.50 MediaTek 434.00 4.00 545.00 384.00 TaiwanPet 66.90 -0.60 85.30 66.70 TaiwanSem 134.50 -1.50 142.00 94.90 Thailand (THB) PTT Explor 333.00 -12.00 398.00 259.00 United Arab Emirates (Dhs) EmiratesTele 11.25 -0.05 12.60 11.10 United Kingdom (p) AngloAmer 1173 -34.50 1678.5 1161 AscBrFd♦ 3151 -50.00 3293 2237 AstraZen 4688 5.00 5750 3367.07 Aviva 487.10 -6.40 571.50 413.70 BAE Sys 454.90 -6.10 486.60 374.10 Barclays♦ 237.25 -0.45 298.13 201.75 BG 843.70 -28.70 1420 843.70 BP♦ 398.80 -0.80 526.80 398.05 BrAmTob 3510.5 -72.50 3806.5 2871 BSkyB 850.50 -12.00 954.00 782.50 BT 411.10 1.00 451.00 350.30 Centrica 274.40 -3.50 349.80 274.33 Compass 1062 -13.00 1115.63 924.41 Diageo 1877.5 -25.50 2043.5 950.00 GlaxoSmh♦ 1393 7.00 1709 1200.67 Glencore 294.85 -11.45 379.45 293.99 HSBC 615.30 -5.60 737.00 585.00 ImpTob 2789 -17.00 2973 2156 LlydsBkg 78.20 -0.40 86.87 70.02 Natl Grid♦ 900.50 -6.50 965.00 742.50 Prudential 1501.5 -1.50 1573.5 1192 RBS 382.90 -2.90 403.90 291.60 ReckittB 5150 5.00 5540 3235.75 Reed Els 1079 -10.00 1123 851.53 RioTinto 2748 -49.50 3680.56 2721.27 RollsRoyce♦ 831.50 -24.50 1294 777.00 RylDShlA♦ 2045 10.00 2864 1992.64 SABMill 3346.5 6.00 3857 2650.21 Shire 4565 136.00 5470 2687 SSE 1620 -16.00 1858 1296.72 StandCh 926.60 -7.40 1434 898.20 Tesco♦ 171.30 -4.40 341.58 155.40 Vodafone♦ 222.95 0.30 442.06 179.10 WPP 1320 -6.00 1565 1091 United States of America ($) 3M♦ 160.02 1.78 162.92 123.61 AbbottLb 44.94 0.57 46.10 35.65 Abbvie 67.93 0.35 70.76 45.50 Accenture 85.06 1.33 87.08 73.79 Ace 115.83 0.96 117.89 92.00 Actavis 264.77 5.96 272.75 156.40 Adobe 70.64 0.79 74.69 53.93 AEP 59.25 1.02 59.84 45.24 Aetna 89.11 1.44 91.25 64.68 Aflac 59.91 0.47 67.62 54.99 AirProd 144.08 2.07 147.53 102.73 Alexion 195.26 3.82 203.30 120.87 Allergan 211.79 1.69 214.66 95.47 Allstate♦ 69.56 1.01 69.57 49.18 Altria 50.51 0.52 51.55 33.80 Amazon 311.00 5.16 408.06 284.00 AmerAir 50.86 1.92 51.75 24.63 AmerExpr 94.10 1.35 96.24 78.41 AmerIntGrp♦ 55.87 1.03 56.56 46.80 Ameriprise 135.26 1.63 137.15 100.94 AmerTower 100.16 -0.01 105.20 75.65 Amgen 169.03 3.64 173.14 108.20 Anadarko♦ 76.64 1.01 113.51 73.60 Aon Cp 97.08 0.76 98.10 76.49 Apache 58.39 0.61 104.57 56.66 AppldMat 24.14 0.36 25.25 16.40 Apple 113.60 1.65 119.75 70.51 ArcherDan 51.73 0.46 53.91 37.92

Yld

P/E MCap m

4.09 16.17 29862.26 3.64 30.20 16054.92 2.70 1.89 1.96 2.81 0.10 2.67 1.08 4.89 2.43 2.13 1.42 5.89

20.62 48319.98 69.91 42010.37 18.87 23188.64 23.97 235730.9 23.84 229644.79 23.66 47806.73 23.39 212112.17 13.49 14403.55 7.57 29522.9 17.33 30889.47 19.64 29594.18 19.12 68469.12 11.77 47136.96

4.90 1.78 2.75 2.97 1.77

17.29 22822.25 11.52 42621.14 14.66 21857.08 22.28 20423.56 15.64 111767.18

2.13

9.82 28963.08

6.02 11.20 24215.32 4.22 257.35 25714.8 1.03 32.67 39155 3.72 93.14 92927.99 3.08 12.43 22537.47 4.42 78.59 22520.72 2.74 53.53 61371.8 2.20 16.07 45208.49 5.98 13.04 114167.57 4.06 18.33 93749.17 3.64 10.60 23005.52 2.41 16.77 52545.77 6.20 21.15 21399.26 2.40 40.54 27824.08 2.61 20.28 74077.01 5.74 16.26 106335.32 3.27 17.88 60902.33 4.87 11.95 185342.97 4.17 38.98 41898.08 - 237.69 87607.3 4.67 15.77 53170.08 2.24 18.02 60499.73 -6.73 38241 2.66 19.89 58085.24 2.28 23.32 35013.3 4.13 14.12 60983.65 2.65 6.88 24661.03 5.74 13.01 125505.65 1.93 24.14 84745.19 0.28 23.83 42274.9 5.35 78.41 25109.08 5.31 9.11 35937.25 8.62 16.23 21840.69 6.25 61.42 92766.32 2.59 17.55 27311.9 1.94 22.68 102543.83 1.72 36.28 67670.23 2.34 30.42 108230.52 2.07 21.18 67083.73 2.14 12.39 38425.16 - -51.46 70180.23 - 155.23 35230.91 3.27 16.71 28987.5 0.95 15.35 31339.99 2.39 9.70 26992.39 2.03 32.42 30836.3 84.01 38717.5 0.09 50.98 63092.67 1.52 11.61 29175.78 3.76 23.93 99821.62 - -688.36 143995.01 0.19 95.58 36480.1 1.01 17.95 97363.06 0.82 9.54 78213.1 1.57 18.51 24959.81 1.27 56.43 39709.72 1.32 27.47 128576.05 1.14 -18.78 38814.36 0.85 23.58 27681.07 1.49-261.16 21982.79 1.54 31.92 29412.04 1.54 18.18 666245.82 1.70 18.34 33392.79

Stock

52 Week High Low

Price Day Chg

AT&T 32.97 0.48 37.48 31.74 AutomData♦ 85.53 1.40 86.54 70.50 BakerHu 56.09 0.75 75.64 47.51 BankAm♦ 17.60 0.22 18.03 14.37 Baxter♦ 73.47 0.71 77.31 65.53 BB & T 38.49 0.39 41.04 34.36 BerkshHat 226557.72 2907.72 229374163038.88 Biogen 349.65 6.06 358.89 270.27 BkNYMeln 40.90 0.12 41.62 30.82 BlackRock♦ 358.78 1.76 368.64 284.78 Boeing 124.89 0.25 144.57 116.32 BrisMySq 60.45 1.17 61.20 46.30 CapOne 83.01 0.62 85.39 67.86 CardinalHlth 81.38 0.90 83.36 63.06 Carnival♦ 44.26 0.96 44.74 33.11 Caterpillar 93.92 0.90 111.46 84.84 CBS♦ 52.05 0.46 68.10 48.83 Celgene 118.13 2.49 119.84 66.85 Centurylink 38.92 0.52 45.67 27.93 CharlesSch 29.98 0.46 31.00 23.35 ChevrnTx 106.46 1.60 135.10 103.07 Cigna 103.40 1.00 105.60 73.47 Cisco 27.29 0.42 27.99 20.22 Citigroup 54.96 0.49 56.95 45.18 CME Grp♦ 89.12 0.09 89.99 66.44 CntnentlRes 34.52 0.99 80.91 33.00 Coca-Cola♦ 41.97 0.37 44.87 36.89 Cognizant 51.96 0.64 54.73 41.51 ColgtPlm 69.94 1.07 70.11 59.75 Comcast 56.33 0.76 57.49 47.74 ConocPhil 64.98 1.44 87.09 62.74 Corning♦ 21.54 0.39 22.37 16.55 Costco 141.67 1.42 146.82 109.50 Covidien 102.63 1.13 103.90 65.49 CrownCstl 76.94 -0.52 84.97 68.44 CSX♦ 35.50 0.51 37.99 25.84 Cummins 145.05 1.08 161.03 122.64 CVS 91.60 1.49 91.75 64.95 Danaher 84.71 1.57 85.24 70.12 Deere 88.04 0.52 94.89 78.88 Delta 48.36 2.14 48.55 26.40 DevonEngy 55.12 0.65 80.63 53.34 DirectTV 84.54 1.16 89.46 64.79 DiscFinServ 63.77 0.63 66.75 51.63 Disney♦ 92.29 1.81 94.50 68.80 DominRes♦ 73.73 1.85 74.59 63.06 DowChem 46.60 0.26 54.97 40.26 DukeEner♦ 83.45 1.20 83.90 67.05 DuPont♦ 72.27 1.04 73.53 59.35 Eaton 67.69 0.88 79.98 57.11 eBay 57.46 2.19 59.70 46.34 Ecolab 105.39 1.18 118.46 97.65 EMC 29.62 0.33 30.66 23.15 Emerson 61.82 0.37 70.66 57.76 EOG Res 89.55 2.76 118.89 78.01 Exelon 36.61 0.67 37.90 26.45 ExpScripts 84.32 0.62 85.72 64.64 ExxonMb 91.10 2.43 104.76 86.91 Facebook 78.35 2.17 81.16 49.01 Fedex♦ 178.31 1.85 183.51 128.17 FordMtr 15.25 0.09 18.12 13.26 Franklin 56.98 0.49 59.43 49.12 FreeportMc 23.59 -0.37 39.32 22.86 GenDyn 143.08 1.94 145.92 89.18 GenElectric 25.68 0.41 28.09 23.69 GenMills 52.39 0.40 55.64 46.70 GenMotors♦ 32.46 0.49 41.85 28.82 GileadSci 106.30 1.46 116.83 63.50 GoldmSchs♦ 194.86 2.86 198.06 151.65 Google 536.33 8.29 614.44 511.00 Halliburton♦ 38.77 0.65 74.33 37.84 HCA Hold 73.97 1.37 74.80 45.07 Hess 68.97 0.39 104.50 68.05 Hew-Pack♦ 38.56 1.20 39.65 26.29 HiltonWwde 26.50 0.51 26.53 20.55 HomeDep♦ 101.30 2.36 101.33 73.96 Honywell 98.38 0.88 100.16 82.89 IBM 162.25 1.74 199.21 159.80 IllinoisTool 95.69 1.08 97.79 76.25 Intel 37.19 0.77 37.90 23.50 Intuit 93.84 1.28 95.42 69.02 John&John 107.13 0.89 109.49 86.09 JohnsonCn♦ 47.40 0.60 52.50 38.60 JPMrgnCh 61.96 1.28 63.16 52.97 Kimb-Clark♦ 114.68 1.51 116.72 98.27 KinderM 39.97 0.53 42.49 30.81 Kraft 60.07 0.49 61.10 50.54 Kroger 62.00 0.64 62.39 35.13 LasVegasSd 55.86 1.34 88.28 53.98 LibertyGbl 49.39 0.71 90.93 37.98 Lilly (E) 74.82 3.77 75.10 48.88 Lockheed♦ 190.07 2.16 192.94 137.22

Bid yield

Mth's Spread chge vs yield US

Dec 11 High Yield US$ MGM Resorts Intl

S*

Ratings M*

F*

Bid price

01/17

7.63

B+

B3

BB

107.55

3.85

0.16

0.92

3.24

High Yield Euro Kazkommerts Intl BV

02/17

6.88

B

Caa1

B

87.00

-

0.00

0.00

-

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

03/15 05/16 01/17 01/18 03/19 07/19 11/19 02/20 03/23

6.63 8.38 6.00 8.00 7.13 6.38 7.50 11.75 3.25

BBB+ BBB+ BBBBBBBBB+ ABBB -

A3 A3 Baa2 Baa2 A3 A2 Baa3 Baa2 Baa3

BBB+ BBB+ BBB BBB BBB+ ABBBBBB BBB-

101.12 121.00 107.93 109.40 118.94 118.02 125.38 140.13 83.13

1.34 1.23 2.06 4.65 2.46 2.23 3.47 3.27 5.85

-0.02 0.00 0.07 0.13 0.08 -0.05 0.00 0.04 0.03

-0.09 0.00 0.19 0.09 0.27 0.03 0.00 0.30 0.21

0.73 0.62 1.45 3.02 0.84 0.61 1.85 1.64 3.64

Red date Coupon

Index

Month's change

Year change

Return 1 month

Return 1 year

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

180.73 289.69 250.59 211.82 219.08 280.34 254.03 289.84 223.62 280.56 216.59 214.01

0.19 0.30 0.19 0.03 0.32 0.44 0.47 0.30 0.14 0.40 0.22 0.12

-0.05 2.27 0.37 0.52 1.26 3.22 1.17 2.27 0.56 2.92 0.97 0.69

5.67 10.79 6.98 7.78 11.72 12.54 5.32 10.80 5.90 11.99 10.12 5.59

-0.32 2.01 0.37 0.72 1.72 2.77 0.58 1.99 0.56 2.52 1.32 0.69

4.90 9.87 6.98 7.40 11.09 11.14 4.64 9.78 5.90 10.71 9.53 5.59

Emerging Euro Brazil 02/15 7.38 BBBBaa2 BBB 111.75 0.73 0.00 0.00 0.12 Mexico 07/17 4.25 BBB+ A3 BBB+ 111.13 1.50 0.00 0.00 0.88 Mexico 02/20 5.50 BBB+ BBB+ 111.09 3.14 -0.01 0.07 1.52 Bulgaria 09/25 5.75 BBBBBB- 123.13 3.20 0.00 -0.23 0.99 Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

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

113.48 109.63 952.94 113.78

0.14 0.02 -2.88 0.09

-

-

1.92 0.22 4.17 1.20

5.74 5.57 -3.14 8.78

Index

Day's change

Week's change

Month's change

Series high

Series low

336.86 60.13 70.58 62.36

-2.08 -0.05 6.17 -0.11

16.24 2.05 8.93 3.18

-2.40 -2.50 11.56 -1.61

419.37 80.45 79.33 85.99

307.60 55.18 58.50 56.40

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

Markit CDX Emerging Markets 5Y 350.75 21.28 59.37 72.39 350.75 238.47 Nth Amer High Yld 5Y 371.70 16.05 39.28 32.53 398.34 328.06 Nth Amer Inv Grade 5Y 68.13 3.27 6.65 3.79 73.81 60.32 Nth AmerHiVol 5Y 0.00 0.00 0.00 0.00 181.74 100.00 Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.

BONDS: INDEX-LINKED Price Month Value No of Yield Oct 12 Oct 12 Prev return stock Market stocks Can 4.25%' 21 129.04 0.073 0.044 -0.86 5.18 67072.77 7 Fr 2.25%' 20 115.02 -0.388 -0.449 -0.64 19.98 205582.98 14 Swe 0.25%' 22 105.03 -0.299 -0.305 -0.82 28.26 243931.09 6 UK 2.5%' 16 330.72 -1.405 -1.434 -0.22 7.90 476871.60 24 UK 2.5%' 24 347.52 -0.863 -0.893 -0.01 6.82 476871.60 24 UK 2%' 35 232.85 -0.733 -0.748 1.03 9.08 476871.60 24 US 0.625%' 21 102.30 0.272 0.285 -0.75 35.84 1069759.99 35 US 3.625%' 28 138.53 0.613 0.285 -0.08 16.78 1069759.99 35 Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par amount.

BONDS: TEN YEAR GOVT SPREADS Bid Yield

Spread Spread vs vs Bund T-Bonds

Australia 2.94 2.26 0.73 Italy Austria 0.85 0.17 -1.35 Japan Belgium 1.14 0.46 -1.07 Netherlands Canada 1.98 1.30 -0.23 Norway Denmark 0.96 0.28 -1.24 Portugal Finland 0.91 0.23 -1.30 Spain France 0.95 0.27 -1.26 Switzerland Germany 0.68 0.00 -1.53 United Kingdom Greece 9.21 8.52 7.00 United States Ireland 1.31 0.63 -0.90 Data provided by SIX Financial Information & Tullett Prebon Information

Bid Yield 2.06 0.38 0.82 1.65 2.97 1.87 0.36 1.91 2.21

Spread Spread vs vs Bund T-Bonds 1.38 -0.30 0.14 0.97 2.29 1.19 -0.32 1.23 1.53

-0.15 -1.83 -1.39 -0.56 0.76 -0.34 -1.84 -0.30 0.00

BONDS: BENCHMARK GOVERNMENT Red Bid Date Coupon Price 07/17 4.25 105.07 04/25 3.25 102.74 Austria 06/16 1.75 101.78 10/24 1.65 107.50 Belgium 12/17 1.00 102.11 12/24 1.10 99.63 Canada 11/16 1.00 100.01 06/25 2.25 102.55 Denmark 11/16 2.50 104.80 11/25 1.75 108.10 Finland 04/17 1.88 104.29 07/25 4.00 130.92 France 11/16 0.25 100.48 11/19 0.50 101.12 11/24 1.75 107.53 05/45 3.25 128.83 Germany 06/16 0.25 100.41 10/19 0.25 100.75 08/24 1.00 102.98 07/44 2.50 124.26 Greece 07/17 3.38 84.85 02/25 2.00 62.67 Ireland 10/17 5.50 114.90 03/24 3.40 118.08 Italy 12/16 1.50 101.78 12/19 1.05 99.64 12/24 2.50 104.06 09/44 4.75 125.56 Japan 12/16 0.10 100.19 12/19 0.08 99.94 09/24 0.50 101.11 09/44 1.70 107.45 Netherlands 04/17 0.50 101.15 07/24 2.00 110.87 New Zealand 12/17 6.00 106.73 04/23 5.50 111.98 Norway 05/17 4.25 107.72 03/24 3.00 111.48 Portugal 02/16 6.40 106.83 02/24 5.65 121.22 Spain 10/17 0.50 99.34 10/24 2.75 107.89 Sweden 08/17 3.75 109.94 05/25 2.50 114.83 Switzerland 10/16 2.00 103.90 07/25 1.50 111.81 United Kingdom 01/17 1.75 102.30 07/20 2.00 102.78 09/24 2.75 107.43 01/45 3.50 117.71 United States 11/16 0.50 99.78 11/19 1.50 99.41 11/24 2.25 100.38 11/44 3.00 102.60 Data provided by SIX Financial Information & Tullett Prebon Information

P/E MCap m

Stock

5.40 10.42 170995.68 2.17 27.75 41231.09 1.07 19.59 24264.43 0.44 46.32 185079.18 2.66 22.69 39819.08 2.36 14.54 27724.29 18.57 194036.04 34.19 82571.74 1.52 17.19 46041.53 2.02 19.17 59275.48 2.07 18.48 89034.89 2.31 38.35 100273.04 1.40 11.54 46595.07 1.53 26.55 26932.86 2.14 25.94 26230.66 2.58 15.68 56859.06 0.95 20.81 25006.08 64.20 94350.93 5.37 28.05 22211.85 0.78 33.05 39146.95 3.77 10.13 201254.58 0.04 14.52 27045.92 2.66 18.87 139549.82 0.07 19.06 166485.53 2.02 30.48 29925.69 13.26 12848.82 2.76 24.06 183833.34 23.45 31639.37 1.94 31.68 63743.2 1.50 18.33 121085.64 4.17 11.50 79984.72 1.80 17.38 27611.01 0.89 32.23 62405.51 1.55 29.04 46469.22 1.32 150.25 25687.02 1.69 19.83 35336.6 1.77 16.84 26499.45 1.11 24.47 105008.73 0.37 22.95 59525.01 2.25 10.64 31555.34 0.54 4.32 40470.3 1.62 10.48 22549.59 16.10 42459.09 1.34 12.53 28918.4 0.90 22.35 156497.15 3.10 29.65 42960.1 2.97 16.06 54918.69 3.64 19.54 59026.23 2.44 22.15 65472.79 2.70 19.77 32125.67 - -591.78 71386.42 1.01 28.89 31629.27 1.41 24.53 60263.82 2.69 20.94 42880.5 0.47 16.62 49074.24 3.28 15.53 31465.01 34.80 61883.29 2.81 11.83 385765.56 76.57 174245.41 0.27 25.78 50505.92 3.02 10.38 58692.48 0.82 15.52 35462.73 5.13 11.31 24512.8 1.60 19.97 47415.24 3.32 17.86 257833.28 2.85 20.67 31630.34 2.68 21.69 52153.36 19.54 160371.02 1.09 11.64 84870.4 29.44 152755.46 1.50 10.33 32856.04 19.58 32070.71 1.40 8.80 20621.06 1.44 15.63 71954.25 49.15 26087.44 1.74 23.57 133495.91 1.77 19.12 77012.88 2.45 10.76 160572.41 1.77 22.47 37408.44 2.34 18.35 179813.65 0.86 33.32 26790.98 2.46 18.34 299854.7 1.80 23.09 31643.87 2.44 11.85 231599.48 2.81 20.98 42713.16 4.05 34.29 41096.69 3.38 15.69 35370.64 0.97 21.68 30447.63 3.21 17.40 44799.62 - -37.26 10627.59 2.54 30.93 83303.26 2.71 19.88 60047.9

52 Week High Low

Price Day Chg

Lowes 67.12 Lyondell 75.76 Marathon Ptl 86.13 MarathonOil 26.87 Marsh&M 57.96 MasterCard 88.01 McDonald's♦ 91.03 McGraw Hill 92.19 McKesson♦ 211.92 Medtronic 74.22 Merck♦ 60.45 Metlife♦ 55.55 MicronTech 35.68 Microsoft 47.73 MondelezInt 38.47 Monsanto 120.96 MorganStly 37.82 Netflix 339.75 News Corp A 37.51 NextEraE♦ 103.06 Nike♦ 98.12 NobleEngy 46.57 NorfolkS 103.38 Northrop♦ 146.26 NtlOilVarc♦ 63.72 OccidPet♦ 76.52 Oracle 41.37 Pepsico♦ 96.89 Pfizer 32.01 Phillips66 67.60 PhilMorris 86.61 PionrNat 134.83 PNCFin 89.80 PPG Inds♦ 223.25 Praxair♦ 127.00 Prec Cast♦ 235.14 Priceline 1126.34 ProctGmbl 91.15 Prudntl♦ 89.69 PublStor♦ 184.63 Qualcomm♦ 72.48 Raytheon 106.85 Regen Pharm 428.47 ReynoldsAm♦ 65.69 Salesforce 56.08 Schlmbrg♦ 84.31 SempraEgy 110.51 SimonProp 182.47 SouthCpr 28.39 Southern 48.61 Southwest Air♦ 42.07 SpectraEn 35.64 Sprint 4.47 Starbucks 83.97 StateSt 78.95 Stryker 93.72 Target 74.52 TeslaMotors 214.85 TexasInstr 54.67 TheTrvelers♦ 105.17 ThrmoFshr♦ 127.91 TimeWrnr♦ 84.13 TimeWrnrC♦ 148.02 TJX Cos 66.22 T-Mobile US 25.76 Twitter 36.91 UnionPac♦ 115.57 UPS B 111.30 USBancorp 45.20 UtdHlthcre♦ 100.57 UtdTech 114.68 ValeroEngy♦ 47.35 Verizon 46.63 Vertex Pharm 121.62 VF Cp♦ 73.75 Viacom♦ 73.28 Visa Inc 265.15 Walgreen♦ 71.63 WalMartSto♦ 84.34 Wellpoint♦ 128.71 WellsFargo 55.10 Williams Cos♦ 45.56 Yahoo 50.42 Yum!Brnds 72.72

Yld

1.99 67.27 44.13 1.14 115.40 74.04 1.07 97.94 74.64 0.44 41.92 26.32 0.43 58.74 44.25 1.68 89.87 68.68 1.03 103.78 89.34 0.64 93.94 71.16 3.80 214.37 156.00 0.99 75.31 53.33 0.92 62.20 47.61 0.59 57.57 46.15 0.82 36.59 20.64 0.83 50.05 34.63 0.36 39.54 31.83 1.61 128.79 104.08 0.43 38.14 28.31 5.43 489.29 299.50 0.52 38.08 30.67 1.62 105.94 81.52 0.74 99.50 69.85 0.79 79.63 45.14 2.10 117.64 87.14 1.94 148.77 107.21 0.64 86.55 62.56 1.38 101.38 74.36 0.45 43.19 33.22 0.71 100.57 77.01 0.15 33.12 27.51 0.49 87.98 66.12 1.01 91.63 75.28 3.28 234.60 130.06 1.03 90.98 73.92 2.40 225.79 171.56 1.40 135.24 117.32 0.24 275.09 215.09 10.82 1378.96 1017.28 1.15 91.28 75.26 3.31 94.30 75.89 0.37 188.36 147.14 0.98 81.97 67.67 0.72 110.00 85.30 5.54 437.64 257.69 0.69 67.59 46.55 0.76 67.00 48.18 1.14 118.76 82.13 2.18 114.50 86.00 -0.24 184.03 148.36 -0.47 33.90 24.70 0.69 48.61 40.03 0.59 42.94 17.96 0.50 43.12 32.80 0.11 11.47 4.22 1.31 84.20 67.93 0.57 80.14 62.67 1.08 95.37 71.22 1.61 74.58 54.66 5.01 291.42 136.67 0.58 56.00 40.33 0.91 106.13 79.89 0.73 129.69 100.04 0.92 88.13 60.72 2.82 155.32 128.78 1.93 66.45 51.91 0.42 35.50 24.50 0.56 74.73 29.51 1.88 123.61 80.02 1.24 111.57 93.19 0.56 45.52 38.10 1.48 101.33 69.57 1.18 120.66 97.30 0.70 59.69 42.53 0.45 53.66 45.45 4.42 122.26 59.79 1.11 74.72 55.14 0.28 89.76 65.86 3.43 265.63 194.84 3.48 76.39 54.86 1.36 87.07 72.27 0.94 129.96 81.84 0.84 55.35 43.47 0.83 59.77 33.98 1.22 52.62 32.15 2.19 83.58 65.81

P/E MCap m

1.20 26.99 65301.63 3.32 9.20 37930.6 1.98 11.05 24133 2.81 10.27 18134.48 1.72 22.48 31350.52 0.48 31.18 97948.11 3.45 18.46 89385.02 1.24 28.92 25029.59 0.44 36.45 49140.38 1.55 26.15 73051.05 2.82 34.17 172321.04 2.18 11.73 63107.13 14.85 38300.88 2.27 19.33 393431.37 1.43 37.11 64626.64 1.34 24.66 58553.51 0.77 15.54 74028.99 93.20 20415.92 0.65 21.37 51918.41 2.66 23.90 44983.87 0.92 32.48 67109.23 1.33 18.87 16851.66 2.03 16.67 31990.1 1.73 16.08 29544.42 2.19 10.75 27436.16 3.54 10.98 59335.76 1.10 18.28 183323.05 2.44 22.14 145006.16 3.09 20.43 201684.04 2.55 10.95 37417.45 4.27 17.94 134567.27 0.06 -77.98 19300.63 1.98 12.51 47253.64 1.11 22.94 30637.73 1.94 20.87 37004.31 0.05 18.93 33515.14 26.27 58970.68 2.65 26.53 246284.61 2.29 18.20 40898.64 2.94 38.01 31890.34 2.06 17.01 120505.32 2.14 16.80 32949.12 - 144.81 42714.99 3.89 22.93 34900.01 - -112.42 34377.04 1.74 16.37 108489.59 2.29 24.95 27173.71 2.68 39.34 56706.95 1.57 17.57 23227.77 4.11 21.46 43739.9 0.46 26.29 28551.38 3.56 24.68 23914.45 -8.80 17663.46 1.20 32.00 62834.75 1.37 17.43 32961.25 1.26 57.80 35456.2 2.38 31.83 47466.59 - -135.62 26938.28 2.13 24.53 57747.92 1.93 10.46 34852.95 0.45 31.85 51167.26 1.43 18.15 70541.85 1.90 21.47 41518.8 0.95 22.29 45618.98 - 169.52 20797.35 - -21.30 23419.82 1.51 22.04 102753.2 2.29 28.52 78170.93 2.03 15.33 80880.26 1.26 18.69 96526.19 1.99 17.48 104548.98 2.04 6.84 24680.95 4.44 10.41 193501.62 - -56.02 29252.26 1.38 26.05 31850.58 1.66 13.94 26350.86 0.58 31.78 130772.5 1.69 37.86 68076.21 2.22 18.07 271827.72 1.27 16.42 34744.16 2.28 13.95 285812.17 3.76 17.49 34054.4 6.92 47765.46 1.97 23.44 31971.28

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

Dec 11 US$ JPMorgan Chase & Co. Duke Energy Ohio, Inc. Citigroup Funding Inc. Ryder System, Inc. Bear Stearns Cos, LLC Cummins Inc. Euro Standard Chartered PLC Anheuser Busch InBev NV/SA BP Capital Markets Philip Morris Intl, Inc. Yen Wal-Mart Stores, Inc. £ Sterling BG Energy Capital plc IPIC GMTN Limited

Red date Coupon

Ratings M*

Bid yield

Day's chge yield

Mth's Spread chge vs yield US

F*

Bid price

05/25 06/25 09/25 12/25 03/26 02/27

5.50 6.90 4.25 6.95 6.00 6.75

ABBB+ ABBB A A+

Baa1 Baa1 Baa2 Baa1 A3 A3

A AA AA+ A

101.45 118.30 100.58 122.47 101.32 124.27

5.42 4.72 6.15 4.40 5.92 4.23

0.01 0.08 0.00 0.07 0.00 0.20

0.13 0.19 0.01 0.17 0.05 0.21

3.22 2.51 3.94 2.19 -

10/25 03/26 09/26 05/29

4.00 2.70 2.21 2.88

BBB+ A A A

A3 A2 A2 A2

A+ A A A

105.70 104.54 103.05 111.48

3.36 2.24 1.92 1.95

-0.02 0.01 -0.03 -0.03

0.00 0.22 -0.07 -0.17

1.15 -

07/15

0.94

AA

Aa2

AA

100.38

0.32

0.00

0.01

-0.30

12/25 03/26

5.13 6.88

AAA

A2 Aa2

AAA

117.02 129.34

3.25 3.65

0.01 0.00

-0.24 -0.08

1.05 -

S*

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

GILTS: UK CASH MARKET

Dec 11 Day Chng Prev 52 wk high 52 wk low VIX 16.17 -2.36 18.53 31.06 10.28 VXD 15.72 -1.79 17.51 22.60 7.64 VXN 17.57 -1.90 19.47 31.17 9.66 VDAX 17.40 -0.10 17.50 † CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. ‡ Deutsche Borse. VDAX: DAX Index Options Volatility.

Australia

Yld

BONDS: GLOBAL INVESTMENT GRADE Day's chge yield

VOLATILITY INDICES Day's change

CREDIT INDICES

Short 7 Days One Three Six One Dec 11 term notice month month month year Euro -0.15 0.00 -0.14 0.01 -0.13 0.02 -0.05 0.10 0.05 0.20 0.21 0.36 Sterling 0.40 0.55 0.40 0.55 Swiss Franc Canadian Dollar US Dollar 0.08 0.18 0.08 0.18 0.10 0.20 0.15 0.25 0.23 0.33 0.48 0.58 Japanese Yen -0.01 0.04 -0.01 0.04 -0.30 0.00 -0.10 0.20 -0.05 0.25 0.00 0.30 Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. LA 7 days notice: Tradition (UK).”

Stock

BONDS: HIGH YIELD & EMERGING MARKET

Close Prev price price Sasol 394.46 401.96 Naspers N 1374.64 1389.01 MTN Grp 209.00 214.56 ICICI Bk 347.95 352.05 YPF 297.00 297.00 Airbus Grpe 41.32 43.18 Lukoil 2223.40 2296.00 Surgnfgz 27.22 28.31 Petrobras 10.11 10.11 CntnentlRes 34.52 33.53 Marathon Ptl 86.13 85.06 Williams Cos 45.56 44.73 FreeportMc 23.59 23.96 Suncor En 32.41 32.41 SaudiBasic 81.75 82.06 Novatek 424.70 428.00 Magnit 11000.00 11350.00 CanNatRs 33.84 33.84 BncBrasil 23.93 23.93 MarathonOil 26.87 26.43 Based on the FT Global 500 companies in local currency

BOND INDICES Since 16-12-2008 16-12-2008 18-02-2010 05-05-2014 05-03-2009 05-10-2010 03-08-2011

INTEREST RATES: MARKET Over Dec 11 (Libor: Dec 10) night US$ Libor 0.11200 Euro Libor -0.08643 £ Libor 0.46813 Swiss Fr Libor Yen Libor Euro Euribor Sterling CDs US$ CDs Euro CDs LA 7Day Notice 0.45%-0.40%

23.50 45870.64 24.01 30598.14 13.24 26044.02 24.68 123197.73 18.28 44505.09 8.11 34751.79 19.18 22932.2 9.88 119929.41 18.14 24925.55 9.69 33568.79 -12.73 33889.12

14.93 96.23 54.59 89.95 72.22 48.69 46.40 54.71 214.30 57.36 21.31

Stock

FT 500: BOTTOM 20 Day change change % -0.50 -0.22 -2.05 -7.02 -0.52 -2.26 1.60 0.41 -0.07 -0.53 -4.03 -2.24 0.00 0.00 3.48 5.11 2.19 3.96 1.94 1.34 -0.11 -1.62 -0.10 -0.59 0.60 0.82 1.46 1.39 2.14 4.62 2.17 2.85 1.99 3.06 2.49 2.15 -0.04 -0.65 -0.11 -0.84

Close Prev price price TevaPha 223.30 223.80 Citic Secs 27.15 29.20 SaicMotor 22.47 22.99 ITC 396.60 395.00 IndstrlBk 13.25 13.32 Kweichow 175.89 179.92 IntSPaolo 2.49 2.49 Walgreen 71.63 68.15 eBay 57.46 55.27 Northrop 146.26 144.32 BkofComm 6.70 6.81 ChinaMBank 16.82 16.92 PingAnIns 73.70 73.10 GileadSci 106.30 104.84 Delta 48.36 46.22 Facebook 78.35 76.18 Lowes 67.12 65.13 Celgene 118.13 115.64 ChConstBk 6.07 6.11 ShgPdgBk 13.05 13.16 Based on the FT Global 500 companies in local currency

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

P/E MCap m

0.29 -0.10 -0.83 1.12 0.53 -0.28 -0.57 0.03 0.60 -0.20 0.03

FT 500: TOP 20

Dec 11 US US US Euro UK Japan Switzeland

Yld

Bid Day chg Wk chg Month Year Yield yield yield chg yld chg yld 2.23 0.00 -0.06 -0.35 -0.92 2.94 -0.01 -0.17 -0.45 -1.51 0.56 -0.01 0.06 0.05 0.02 0.85 0.00 -0.06 -0.15 0.00 0.29 0.00 -0.02 -0.03 -0.88 1.14 -0.03 -0.09 0.00 0.00 0.99 0.02 0.03 -0.02 0.00 1.98 0.03 -0.04 -0.18 0.00 0.00 0.00 0.00 0.00 0.00 0.96 0.01 -0.06 -0.05 0.00 0.04 -0.01 -0.01 0.01 -0.56 0.91 0.00 -0.08 -0.15 -1.39 0.00 -0.01 -0.02 -0.01 0.00 0.27 0.01 0.00 -0.02 0.00 0.95 -0.01 -0.08 -0.21 0.00 1.98 -0.02 -0.13 -0.29 -1.36 -0.02 0.00 0.00 0.00 0.00 0.09 -0.01 -0.04 -0.02 0.00 0.68 0.00 -0.10 -0.12 0.00 1.48 -0.01 -0.15 -0.21 -1.20 10.33 1.03 4.04 3.26 0.00 9.21 0.43 1.40 0.56 0.41 0.23 -0.01 0.00 -0.09 -1.51 1.31 0.00 -0.08 -0.29 0.00 0.61 0.01 0.09 -0.02 0.00 1.13 0.01 0.11 0.00 0.00 2.06 0.00 0.03 -0.30 0.00 3.41 0.01 0.02 -0.30 -1.46 0.01 0.00 0.00 0.00 0.00 0.09 0.00 0.00 -0.10 0.00 0.38 0.00 -0.02 -0.12 0.00 1.35 0.02 -0.07 -0.13 0.00 0.01 -0.01 -0.02 0.00 0.00 0.82 0.00 -0.07 -0.13 0.00 3.63 -0.02 -0.06 -0.17 -1.34 3.81 0.02 -0.04 -0.31 -1.00 1.01 -0.15 -0.19 -0.28 -0.80 1.65 -0.13 -0.20 -0.35 0.00 0.51 -0.03 0.08 -0.02 -3.19 2.97 0.02 0.18 -0.23 -3.16 0.73 0.02 0.10 0.04 0.00 1.87 0.00 -0.01 -0.25 0.00 0.01 0.00 -0.03 -0.04 -1.32 0.99 -0.02 -0.09 -0.15 0.00 -0.14 0.00 0.00 0.00 0.00 0.36 0.00 -0.03 -0.12 -0.92 0.65 0.02 -0.01 -0.09 -0.34 1.48 0.00 -0.04 -0.19 0.00 1.91 0.00 -0.08 -0.27 0.00 2.64 -0.01 -0.09 -0.29 0.00 0.61 0.04 0.07 0.00 0.00 1.62 0.07 0.04 0.00 0.00 2.21 0.05 -0.04 -0.14 0.00 2.87 0.04 -0.07 -0.20 0.00

Red 52 Week Amnt Change in Yield Dec 11 Price £ Yield Day Week Month Year High Low £m Tr 3.5pc 'WL Tr 2.75pc '15 100.27 0.32 0.00 -0.05 -0.19 -2.25 102.57 100.27 0.29 Tr 2pc '16 101.68 0.48 -0.02 0.00 -0.05 -1.12 102.88 101.66 0.32 Tr 1.75pc '17 102.34 0.63 -0.02 0.07 0.18 0.06 102.56 101.07 0.29 Tr 5pc '18 112.95 0.93 0.01 0.08 0.24 -1.45 114.65 111.68 0.35 Tr 4.5pc '19 113.76 1.16 0.02 0.17 0.57 0.34 114.43 111.17 0.36 Tr 4.75pc '20 117.09 1.36 0.04 0.27 0.79 1.32 117.71 113.53 0.33 Tr 8pc '21 140.05 1.50 0.04 0.32 0.89 1.15 140.87 135.65 0.24 Tr 4pc '22 116.32 1.60 0.04 0.47 1.41 5.03 116.72 109.05 0.38 Tr 5pc '25 128.85 1.89 0.07 0.84 2.28 8.49 129.06 116.64 0.35 Tr 4.25pc '27 124.19 2.11 0.09 1.06 3.03 11.80 124.32 109.01 0.31 Tr 4.25pc '32 126.94 2.36 0.19 1.30 3.87 14.26 126.94 109.23 0.35 Tr 4.25pc '36 128.63 2.50 0.23 1.50 4.33 15.54 128.63 109.13 0.26 Tr 4.5pc '42 137.87 2.59 0.28 1.90 4.97 17.70 137.87 114.63 0.26 Tr 3.75pc '52 127.06 2.62 0.33 2.56 6.37 22.06 127.06 101.59 0.22 Tr 4pc '60 137.42 2.59 0.36 2.89 7.07 23.77 137.42 108.28 0.21 xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield. This table shows the gilts benchmarks & the non-rump undated stocks. A longer list appears on Mondays & the full list on Saturdays, and can be found daily on ft.com/bond&rates.

GILTS: UK FTSE ACTUARIES INDICES Price Indices Fixed Coupon 1 Up to 5 Years 2 5 - 10 Years 3 10 - 15 Years 4 5 - 15 Years 5 Over 15 Years 6 Irredeemables 7 All stocks Index Linked 1 Up to 5 Years 2 Over 5 years 3 5-15 years 4 Over 15 years 5 All stocks Yield Indices 5 Yrs 10 Yrs 15 Yrs

Day's chg % 0.01 0.06 0.09 0.07 0.27 0.01 0.13

Dec 11 100.22 180.48 207.15 186.49 294.17 425.57 172.94 Dec 11 315.94 568.87 437.52 693.80 527.62 Dec 11 1.30 1.94 2.31

Day's chg % -0.14 0.49 -0.12 0.76 0.42 Dec 10 1.31 1.95 2.32

Yr ago 1.76 2.88 3.34

Total Return 2333.91 3158.28 3690.27 3287.17 4140.11 5024.52 3139.53

Month chg % -0.40 6.47 2.01 8.55 5.71

Return 1 month 0.58 1.96 3.37 2.37 5.92 9.80 3.14

Year's chg % -1.95 19.26 7.09 25.73 16.81

20 Yrs 45 Yrs Irred

inflation 0% Dec 11 Dur yrs Previous Yr ago Dec 11 Real yield Up to 5 yrs -1.01 2.58 -1.07 -1.41 -1.57 Over 5 yrs -0.74 22.67 -0.72 0.01 -0.77 5-15 yrs -0.80 9.23 -0.81 -0.18 -0.92 Over 15 yrs -0.73 28.47 -0.70 0.04 -0.75 All stocks -0.74 20.50 -0.72 -0.02 -0.78 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts

Total Return 2375.03 4167.80 3287.25 4996.60 3910.67 Dec 11 2.50 2.62 3.47

Return 1 year 2.18 7.82 14.43 9.67 21.99 29.90 11.40

Yield 0.98 1.62 2.03 1.78 2.55 3.47 2.27

Return 1 month -0.17 6.64 2.24 8.69 5.88

Return 1 year -0.13 20.34 8.45 26.63 17.99

Dec 10 2.52 2.63 -

Yr ago 3.51 3.53 -

inflation 5% Dur yrs Previous 2.60 -1.62 22.78 -0.75 9.26 -0.93 28.53 -0.72 20.64 -0.76

Yr ago -1.96 -0.03 -0.32 0.01 -0.07

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

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

★

24

FINANCIAL TIMES

Friday 12 December 2014

MARKETS & INVESTING Capital markets

Early Argentina ‘holdouts’ deal in doubt

Beyondbrics

EM rout highlights China’s caution on currency reforms For those frustrated by slow progress towards freeing up China’s tightly controlled currency, recent days provide an illustration of why authorities are determined to proceed with caution. Emerging market currencies hit a 14-year low against the dollar this week, hit by concerns about rising debt and slowing exports in emerging markets. Yet amid the turmoil the renminbi has been a relative bastion of stability. Even as the currency hit its weakest level against the dollar in four months on Tuesday at Rmb6.21, it was only a modest 1.6 per cent weaker than the sevenmonth high touched on October 31. By contrast, the JPMorgan Emerging Markets Currency Index fell 5 per cent over the same period. “The jump in USD-RMB in the last two days is sharp by the currency’s own standards,” Wang Ju, forex strategist at HSBC, wrote on Tuesday. “However, given the movements in the rest of Asia, this partially represents a catch up with the likes of the Malaysian ringgit and the Korean won.” Top Communist party leaders pledged in a landmark blueprint for economic reform last November to give market forces a “decisive role” in resource allocation. The plan contained an explicit reference to the exchange rate. Yet despite such pledges, China’s management of its currency in recent days makes clear that authorities remain far from willing to deregulate fully the exchange rate or allow speculators free rein to send waves of capital sloshing in and out. The People’s Bank of China’s stabilising influence on the exchange rate is clear from the deployment of its daily fixing in recent days to restrain the renminbi’s decline. The central parity rate, which signals the central bank’s intention for the exchange rate, is a midpoint from which the spot rate is permitted to fluctuate by 2 per cent above or below. For most of the period

since China’s de-pegging of its currency in 2005, the renminbi’s spot rate consistently traded stronger than the midpoint, a sign that the fixing was acting as a check on market pressure, pushing the renminbi higher. But this pattern reversed late last month, after China cut benchmark interest rates in an attempt to boost its economy, which is on course for its slowest full-year growth since 1990. Even as the spot rate weakened, the central bank set a series of progressively stronger midpoints, widening the gap between spot and fixing. While some viewed this divergence as a tug of war between the central bank and the market, the PBoC’s move was an effort more to moderate the renminbi’s fall than to actively pull it stronger. Such action “indicates the central bank is sending a signal of stability to the market”, said Xie Yaxuan, economist at China Merchants Securities. The PBoC has probably also intervened in the market directly. Forex traders said they saw concerted renminbi buying by big state banks on Tuesday afternoon, following a big drop in the renminbi that morning. Such action typically signals the central bank’s presence in the market. While few expect rapid devaluation in the near term, many investors are starting to question the conventional wisdom that the Chinese currency is a one-way bet to appreciate. Entrenched appreciation expectations are easy to understand. Apart from 2009, following the PBoC’s temporary return to a dollar peg during the height of the financial crisis, the renminbi has risen against the US currency every year since 2005. Now, however, some investors believe a new era of renminbi depreciation may be at hand, especially with the prospect of rate rises by the Federal Reserve next year. The renminbi is now down 2.1 per cent year-to-date in 2014. Additional reporting by Ma Nan in Shanghai

Currencies Rmb per $ 6.00

Emerging markets (JPMorgan trade- weighted index) 90

6.05

88

6.10

86

6.15

84

6.20

82

6.25

80 Jan

2014

Sources: Thomson Reuters Datastream; Bloomberg

Dec

If bond issue and offer is agreed, rushed settlement could be avoided BENEDICT MANDER — BUENOS AIRES

Hopes for a resolution early next year of Argentina’s legal dispute with its “holdout” creditors have faded thanks to a $3bn bond issue and an offer to swap or cash in $6.7bn of debt maturing next year that closes today. If enough investors take up the government’s offer, this could bolster foreign exchange reserves and give Argentina the financial flexibility it needs to avoid being forced into a rushed settlement with a group of US hedge funds led by billionaire Paul Singer’s NML Capital. After negotiations collapsed in July triggering Argentina’s second default in

13 years, markets expect talks to resume in January when a key clause in bond contracts expires. A deal would enable Argentina to resume borrowing on the international capital markets, which it has been unable to do since its 2001 default. But analysts say Argentina may not be in such a rush to borrow abroad if it pulls off the $3bn issue of 2024 bonds under local law, which would sidestep a US court ruling in favour of the holdouts that prevented Argentina from paying its bondholders without paying them too, and so triggering the July default. Still, this financial freedom comes at a price: the 8.75 per cent interest rate on the new bonds is more than double what is paid by other countries in the region such as Brazil, Mexico and even Bolivia, explaining why Argentina has avoided issuing new debt in foreign

currency for more than seven years. The debt swap, which gives investors the opportunity to exchange 2015 bonds for ones that mature in 2024, would take further pressure off Argentina’s financial commitments next year, with the 2015 bonds representing about half of Argentina’s $13bn of debt payments due next year. Meanwhile, the government is billing its offer to investors to receive early payment of their 2015 bonds as another sign of its willingness to pay its debt, despite being prevented from servicing its foreign law bonds by a US court order until it reaches a deal with the holdouts. This will calm market speculation that the government was planning to default on the 2015 bonds next year or convert them into local currency. Nevertheless, there is consensus among analysts that the terms of the

$3bn Country’s bond issue with offer to swap or cash in $6.7bn of debt maturing next year

8.75

% Interest rate on new bonds which is more than double that paid by other countries in region

offer do not offer sufficient incentives to ensure widespread participation, especially among foreign investors who hold around 70 per cent of the bonds maturing in 2015. It remains to be seen whether the government will adjust the terms or extend the offer. Depending on the success of the offer in bolstering foreign exchange reserves, which have also been supported by such measures as a foreign currency swap with China, the government may also be able to postpone a devaluation, which analysts argue will eventually be inevitable. “The strategy of the government could be to muddle through until elections, leaving the resolution of the holdouts issue for the next administration,” said Miguel Kiguel, a former finance secretary who runs the EconViews consultancy.

Analysis. Commodities

Big holder shows up aluminium trade issues Dominant operator highlights long warehouse queues that allow space for large bets

Aluminium LME stocks (tonnes, m)

LME 3-months price ($ per tonne)

5.6 HENRY SANDERSON

For years buyers of aluminium have put the metal in warehouses, borrowed against it, and waited for prices to rise. It was an obvious trade. Now the metal is finally starting to leave warehouses, but much is still held up in long queues. That has opened up space for large trading bets that have raised questions over how efficiently the market is functioning. Aluminium is one of the world’s most important metals, used in cans, cars and aeroplanes and valued for its lightweight properties. It is being used increasingly by US automakers to meet fuel-efficiency standards. The London Metal Exchange acts as a source of metal at times when aluminium is in short supply elsewhere. Exchange data show that at the end of November one entity had accumulated an aluminium holding of 50-79 per cent of the metal on the LME, the world’s largest metals exchange. The appearance of a dominant holder highlights how persistent problems with the working of an official warehouse system have allowed for the placing of large trades. These trades, which are in effect bets on the spread between spot and futures prices, could also give holders increasing influence over prices just as demand for aluminium has picked up due to rising use by the auto industry, while supply has tightened following the closure of smelters. The dominant holder drove the November 27 spot price $31 higher than the price for delivery in three months, the highest spread since December 2012. Since then it has come back down, as rumours that one large trading house had been squeezed by the dominant holder faded. “Queues restrict the lending capacity of the market which leads to a further tightening of the available liquidity,” Robin Bhar, an analyst at Société Générale says. Stocks of aluminium on the LME have fallen 21 per cent this year to 4.3m tonnes, yet more than half of that is sitting in warehouse queues waiting to be loaded out. The actual so-called “free float” metal, in storage and available to trade, is even smaller, say market participants.

2400

5.4 2200

5.2 5.0

2000

4.8 4.6

1800

4.4 4.2

1600

2011 12

13

14

Aluminium premium over LME cash price $ per tonne US midwest free market aluminium EU free market aluminium 600 Singapore aluminium 500 Japan aluminium 400 300 200 100 0 2011

12

13

14

Sources: Thomson Reuters Datastream; Bloomberg

Demand has picked up due to rising use in the auto industry, such as on this Audi assembly line in Germany Thomas Kienzle/AP

In LME warehouses in Detroit, for example, only 16,075 tonnes of stock are in storage, whereas 928,700 tonnes are waiting in the queue. “The person who is effectively building the dominant position only has to go for the free float, and you remove the liquidity from the LME,” one trader says. “By definition you control all the stock that is freely available.” The dominant holding in aluminium has mirrored what has happened in the copper market, where a single entity has also accumulated a majority holding, starting in September. The aluminium market has been the subject of heightened scrutiny in recent years. During a hearing of the US Senate investigation into banks’ commodities business this month, investigators queried how Goldman Sachs came to own about 1.5m tonnes of aluminium in 2012, worth $3.2bn, and more than 25 per cent of annual North American consumption at the time. Goldman

said it had acquired the large position to meet demand from clients. Low interest rates after the financial crisis and a market that has spent long periods in “contango” — where futures prices are higher than current ones — led to mass storage of aluminium in warehouses. Buying and borrowing against the metal and paying warehouse rents while waiting for higher prices provided relatively risk-free returns of up to 7 per cent. Users of the metal have claimed that this inflated costs for consumers, and reduced metal for actual consumption. Indeed, premiums for delivery of physical aluminium in the US, Europe and Japan have risen to record highs this year. Queues for warehouses in Detroit owned by Goldman Sachs and by mining company Glencore in the Netherlands are still more than 550 days. Analysts say this is nothing to worry about as the market self-corrects after the appearance of a dominant holder. In

addition LME rules require that holders with positions greater than 50 per cent must lend metal at fixed rates. “The LME constantly monitors its markets to ensure that trading is orderly,” the LME said in response to a question on aluminium. The LME has also vowed to reduce queues and next year will introduce a contract allowing users to hedge the high aluminium premium. Yet the reduction in queues in Detroit and in the Netherlands is likely to take years, analysts say. Large holders are also likely to continue to appear to squeeze the market. “From a historical standpoint things are definitely not back to normal. The LME for the consumer remains dysfunctional,” Jorge Vázquez, managing director of Harbor Aluminum Intelligence, says. “Today consumers can’t really use the LME as a market of last resort. Maybe conceptually they can but in practice they can’t.”

Currencies

Equities

Strong dollar hits US corporate profits

Sharp sell-off in Greece as outlook fears return

ERIC PLATT — NEW YORK

A strengthening dollar is proving costly to companies across the US and Europe. The rising greenback shaved $8bn off North American and European thirdquarter sales, with more than 275 companies warning of negative foreign exchange impacts in the period, data from consultancy FiREapps show. The dollar, which climbed nearly 8 per cent against the euro and Japanese yen in the quarter to September 30, was an added hitch for companies dependent on foreign sales, particularly as economic growth in Europe and Asia disappoints. The total currency effect on revenues rose 196 per cent from a quarter earlier, the report found, as FX volatility rose. FiREapps, which analysed the earnings

calls of 1,200 publicly traded companies with at least 15 per cent of revenues derived from a foreign market, says that trend will probably continue. US companies that quantified the foreign exchange impact on profits said earnings were on average reduced by 3 cents a share due to currency swings. Diverging monetary policy in Europe and the US has driven a wedge between one of the most active currency pairs, with strategists at Bank of America Merrill Lynch forecasting the euro to weaken by another 10 cents against the dollar by the end of 2016. More than two-fifths of S&P 500 sales were generated abroad in 2013, data from S&P Dow Jones Indices show, presenting a challenge to a vast majority of the index’s constituents. The euro was most often mentioned as a culprit in the 846 US corporate

earnings calls analysed by FiREapps, followed, in order, by the yen, rouble, Brazilian real and Venezuelan bolívar. Executives with Hewlett-Packard, Campbell Soup and Salesforce warned recently that currency headwinds would weigh on results, while Philip Morris International chief executive André Calantzopoulos said his company had “been hammered by currency this year to a much higher degree than we possibly could have anticipated”. General Motors called the Russian rouble “a headwind for us, no question”, with the Turkish lira and UK pound also key to the company’s European results. Strategists note a stronger dollar and weaker pricing power could curtail profit gains, with S&P 500 year-on-year earnings growth expectations currently sitting at 9.3 per cent. That, in turn, could hit stock performance.

CHRISTOPHER THOMPSON

Greek stocks and bonds saw another sharp sell-off yesterday amid mounting fears about the country’s future within the eurozone and rising political uncertainty. Greece’s stock market declined by 7 per cent following the worst one-day fall since the late 1980s earlier this week. Benchmark 10-year government borrowing costs rose by 50 basis points to yield 8.79 per cent. The decline means the Athens bourse has shed nearly a fifth of its value this week after the announcement by Antonis Samaras, prime minister, of a snap presidential election later this month. If he fails to win sufficient support for his candidate, an early general election could follow which investors fear will

bring to power the radical left Syriza party that has campaigned on an antiausterity platform. “Further volatility cannot be ruled out given the event risk over December,” said Peter Goves, an analyst at Citi. Political instability also led investors to price in a greater chance of Greece defaulting on its debt, pushing the costs of insuring benchmark government bonds up by 10 per cent. In contrast to the contagion seen during the eurozone sovereign crisis three years ago, worries over Greece’s future have had a limited impact on other peripheral economies so far. “At the moment you’re seeing a slightly softer tone in the wider periphery — it’s relatively muted but it’s there,” said Mr Goves. “The debt ownership structure of Greek debt has changed considerably

over recent years, with the majority now held in the official sector — so in that sense it’s quite different to 2011.” Italian and Spanish borrowing costs remained broadly stable, although they have risen by 11 basis points and 9bp respectively this week. Didier Saint-Georges, a member of the Paris-based fund group Carmignac’s investment committee, said Greek uncertainty was not “viral” for the rest of southern Europe. “It shows that whole European situation is not hostage to what is happening in Greece,” said Mr Saint-Georges. “We do own a little bit of three- and five-year [Greek] bonds and we are keeping them. The market has reacted a lot domestically — a bit too much — and the fact there’s no contagion shows that it’s not such a game-changer.”

★

Friday 12 December 2014

25

FINANCIAL TIMES

MARKETS & INVESTING Global overview

TRADING POST

Jamie Chisholm The eurozone “convergence” trade has worked well for most of 2014. But is it time to bet on a reversal next year? Convergence refers to tightening spreads between the eurozone’s core bond yields, such as Bunds, and the more fiscally-challenged periphery, such as Spain and Italy. On January 1, the extra yield Madrid had to pay to sell its paper compared with Berlin was 222 basis points. It is now around the 120bp mark. Rome had to stump up 219bp more, but that has dwindled to 135bp. This tightening has played out over a few years since the height of the Greece-inspired eurozone debt crisis. In 2012, both Italy and Spain had to pay greater than 500 basis points more than Germany. Tighter spreads reflect two things. First, a shift from worrying about risk premium on peripherals and greater emphasis on waning growth alongside disinflation. Second, investors are front running the expected launch of full-blown US-style quantitative easing by the European Central Bank. In other words the buying of sovereign debt. But this week spreads have nudged up from the year’s lows as the prospect of a possible “Grexit” exercises investors. And traders must try and figure out how much of the mooted ECB QE is already baked into yields. Should president Mario Draghi disappoint then that should cause spreads to widen again. Pay particular attention to Italy, close to deflation and with debt to GDP among the highest in the bloc. [email protected]

Spanish-German 10-year bond spread

Basis points

2010

12

14

600 300 0

Source: Thomson Reuters Datastream

US retail data help risk aversion fade despite oil near five-year lows Bond yields rise as dollar gains ground against yen and puts pressure on Treasuries while investors consider Fed’s next move FT REPORTERS

Wall Street shrugged off soft sessions in Asia and Europe, as signs emerged that the global market’s latest bout of risk aversion may be fading even as the oil price flirted with fresh five-year lows. Sentiment was supported by evidence that the US consumer is still in good spirits. US retail sales rose by a bigger than expected 0.7 per cent last month, lifting the S&P 500 1.4 per cent to 2,053 by midday in New York, recovering from a 1.6 per cent slide on Wednesday driven by anxiety over oil prices. The upbeat data also helped the dollar gain ground against the “haven” yen and put pressure on policy sensitive twoyear Treasury notes, as investors contemplated more imminent monetary policy tightening from the Federal Reserve. “Strong retail sales data helped place further flattening pressure on the Treasury curve as five-year notes and 30-year notes tested new lows,” Gennadiy Goldberg, an analyst at TD Securities, wrote in a note. “This suggests investors continue to pull forward the anticipated timing for rate hikes as the US economy continues to lead growth momentum amid a weaker global recovery.” Causes of Wall Street’s recent sell-off, and the accompanying global wobble, continued to be debated among traders. The main suspect is the slumping oil price. Brent crude fell below $65 a barrel on Wednesday for the first time in half a decade after Opec cut forecasts of demand to the lowest in 12 years. Brent

Bryce Elder Two months after a bid from AbbVie collapsed, investors have been feeling more comfortable with the idea of Shire staying independent. Shire rose 3.1 per cent to £45.65 yesterday in reaction to the drugmaker’s R&D meeting in New York a day before. The stock has rallied 23 per cent from its low point in October, when AbbVie abandoned a $54bn bid and paid a $1.64bn termination fee.

rose 20 cents to $64.44 yesterday. Many investors are wary that the slide in energy costs is not just reflecting rising production in the US but is evidence of waning demand — a signal that the global economy is in worse shape than some analysts think. There are also concerns that some oil exporting countries that need higher oil prices to manage their economies are being forced to sell assets in their investment portfolios to raise cash. And they are dumping the growth-focused ones first; in other words, reducing exposure to equities rather than sovereign debt. This highlights another possible reason for the stock market slide: the par-

At the meeting, Shire stuck with guidance of doubling sales to $10bn by 2020 through pipeline development rather than with one transformational acquisition. Analysts have estimated that Shire has the capacity to raise up to $13bn in debt for takeovers. “These assets remain exceedingly attractive,” Cowan & Co told clients. “There is good duration in the current on-market portfolio, the pipeline appears to hold potential significant value, the annual cash flows are solid, the management team is very talented and appropriately aggressive, and the balance sheet is net cash positive. Few entities look like this.” Oil and miners dragged on the FTSE 100 lower for a fourth straight day, down 0.6 per cent or 38.34 points at 6,461.70. Glencore lost 3.7 per cent to 294.9p, its lowest since mid 2013, in response to news that the miner had raised its 2015 capital expenditure guidance by $1.3bn during an investor day on Wednesday. Legal & General was up 2.2 per cent to 246.6p after Nomura turned positive in a 2015 insurance sector preview.

A short squeeze lifted Quindell 9.9 per cent to 36p, which dealers said may have been triggered by this week’s sale of about 24m shares by founder Rob Terry. The cost of borrowing Quindell stock hit its maximum level, Markit data showed, while filings revealed Roble, a vehicle of US hedge fund Tiger Global, had reduced its short position to 2.72 per cent from 3.92 per cent. IGas, the UK shale gas developer, lost 14.8 per cent to 39p after Canaccord Genuity raised concerns over its debt levels. The broker, which added a “speculative” tag to its previous “buy” recommendation, forecast that at current oil prices the liquidity and leverage covenants on iGas’s $165m of bonds “could be challenged”. Canaccord’s concerns overshadowed rumours in the market that IGas is a potential takeover target for a Swiss chemicals company. IOMart bounced 6.3 per cent to 172.5p amid bid speculation and on an upgrade from N+1 Singer. It argued the cloud computing specialist had been oversold earlier in the week on news of a slowdown at its hosting division.

Jan

50 Dec

2014

Source: Thomson Reuters Datastream Day's Indices S & P 500

Close

change

2055.25

29.11

DJ Industrials

17753.97

220.82

Nasdaq Comp

4758.34

74.32

Russell 2000

1161.86

-26.20

VIX

London Investors warm to Shire’s independence

Markets’ macro speedbump: FT.com/video John Authers asks Jeffrey Kleintop at Charles Schwab whether US markets can keep rallying if the rest of the world slumps

A cholesterol treatment could reach $3bn in sales, Mr Risinger added. Shares in Eli Lilly advanced 5 per cent to $74.68. Urban Outfitters led the benchmark S&P 500 after the company said samestore sales in its current quarter were “low single-digit positive”. Wall Street had projected a 2.5 per cent rise in comparable store sales in midNovember. The US retailer has had strong results at its Free People and Anthropologie brands, while its eponymous division has struggled to increase sales. Analysts at Wells Fargo said Urban Outfitters was beginning to make progress at its namesake brand, and expected that trend to continue. “While some of the improvement at Urban Outfitters has been promotionally driven, e-commerce has been strong at each brand, though

70 60

Eli Lilly shares were buoyed by a brokerage upgrade yesterday as Morgan Stanley analysts gained confidence over the drugmaker’s product pipeline. Morgan Stanley raised its rating from “underweight” to “overweight” on the view several of its treatments could prove to be blockbusters. “Recent external data readouts in major disease states — atherosclerosis and Alzheimer’s — make us more confident that Lilly management is making the right pipeline investments,” David Risinger, an analyst at Morgan, said. The investment bank, which also increased its price target to $85 from $60, said peak sales from the company’s closely watched Alzheimer’s treatment could hit $10bn, if studies prove it effective.

Mark Lennihan/AP

stores have been slower to improve,” Paul Lejuez, an analyst at Wells Fargo, said. “ We believe fourth quarter comps will finish above our previous estimates.” The company climbed 10 per cent to $33, lifting its market valuation to $4.3bn. Shares in Staples, the US office supplies chain, surged 10 per cent to $16.28 after a well-known activist investor disclosed a stake in the retailer. Starboard Value, an activist investor whose current targets include Yahoo, has taken a 5.1 per cent stake in the business, and has increased its holding in rival supplier Office Depot to 10 per cent. Staples, which has more than 1,800 stores, has been trimming costs as it faces stiffer online competition as well as diminished demand for some key office supplies such as paper. Office Depot shares rose 13 per cent to $7.61. Lending Club, the world’s largest peer-to-peer lender, climbed 65 per cent to $24.75 during the company’s debut on the New York Stock Exchange, valuing it at $8.9bn. Competing for attention on the IPO front, Momo, the Alibababacked messaging application, climbed nearly 6 per cent to $14.25 as shares began trading. Overall, US equity markets ended three days of losses, as data showed stronger than expected retail sales. The S&P 500 climbed 1.4 per cent to 2,055.41 while the Dow Jones Industrial Average advanced 17,754.43. The technology-heavy Nasdaq Composite increased 1.6 per cent to 4,759.61.

Share price ($)

Eric Platt

S&P 500 index Change on day

18.53

3.64

US 10 yr Treas Bd

2.21

0.05

US 2 yr Treas Bd

0.61

0.04

ing of previously winning trades through 2014. As the end of the year approaches, the S&P 500 is still up 9.6 per cent, while those investors who have bet on a strong dollar and weak yen have made hay. Some profit-taking was inevitable and is occurring in seasonally thinner conditions, exacerbating volatility. The CBOE Vix index, a gauge of expected US equity volatility, ended last week at 11.8 but closed on Wednesday at 18.5 — a jump of 57 per cent. Yesterday, the Vix was back down to 16.4. US bond yields, having fallen all week on risk aversion buying, rose yesterday following the retail sales figures. The US 10-year yield rose 4 basis points to 1.86

Trading Directory

per cent, while the two-year yield likewise climbed 4bp to 0.61 per cent. The dollar index, which on Monday hit a five-year high of 89.55, was up 0.4 per cent on the day at 88.67. The yen this week touched a seven-year low versus the buck of Y121.84, but yesterday stabilised temporarily at Y119.39. Ten-year Bunds were at a record low of 0.67 per cent as French and German inflation hovered at multiyear lows. The demand for high-quality European debt also reflected a revival of eurozone fears after Greek stocks fell and bond yields spiked on forecasts that an anti-austerity party could win the next election. Yesterday, the Athens stock market fell another 7 per cent and benchmark bond yields rose 44bp to 8.9 per cent. Weakness in miners weighed on European stocks, but the FTSE Eurofirst 300 pared losses to close the session 0.1 per cent higher. Finally, a number of analysts speculated that Tuesday’s 5.4 per cent slump in China’s stock market, on talk of tighter credit conditions, provided an extra frisson to the global anxiety. But things in Shanghai seem to have calmed down: the composite index slipped just 0.5 per cent yesterday. Elsewhere in Asia, Hong Kong’s Hang Seng index lost 0.9 per cent, led by energy stocks, as authorities began to dismantle barricades in an effort to end more than two months of civil disobedience in the Chinese territory. Tokyo’s Nikkei 225 fell as much as 2.1 per cent in early trading but the loss was pared to 0.9 per cent as the yen weakened. The benchmark average briefly rose above 18,000 this week — a seven-anda-half-year high — but has since fallen 4.1 per cent. Reporting by Jamie Chisholm in London, Anna Nicolaou in New York and Patrick McGee in Hong Kong

1.53% 2080 2060 2040

Nov

Eli Lilly

Wall Street Optimism over Eli Lilly treatments pipeline drives 5% advance

Markets update

2014

2020 Dec

US equities Stocks advanced on Wall Street, snapping a three-day losing streak, after stronger retail sales data renewed optimism about US growth prospects

FTSE 100 index 0.59%

Change on day

Nov

2014

6800 6700 6600 6500 6400 Dec

UK equities The FTSE 100, dipping to a six-week low, was led by mining companies. The mining index fell 2 per cent, dragged down by weak commodity prices

Eurofirst 300 index Change on day

0.02%

1400 1380

Nov

2014

1360 1340 Dec

European equities Stocks were weighed by political uncertainty in Greece. Greek shares fell 7 per cent, while the Eurofirst 300 index ended the session little changed

Nikkei 225 index (’000) Change on day

0.89%

18.0 17.5 17.0

Nov

2014

16.5 Dec

Asian equities Japanese stocks fell and the yen capped a three-day rally yesterday, driving down energy shares and exporters

★

26

Friday 12 December 2014

INSIGHT

Analysis. Capital markets

Ralph Atkins

Cheap energy bonds fail to tempt rally

Watch out for ‘ouch’ potential of global volatility in 2015

G

reece’s stock market crashes. Shares plunge in Shanghai. Tumbling oil prices hit junk bond markets and emerging market currencies. The trend seems clear: this year is ending in a burst of volatility. In fact, 2014 will go down in financial history as a year of exceptional calm. For all the worries about economic fragilities and geopolitical risks, measures of market choppiness have, mostly, stayed low. The closest watched is the Vix index of expected US share price volatility, known as the “Wall Street” fear gauge but really an indicator of global investor nervousness. The Vix has averaged the lowest since 2006, a year of halcyon calm. What we have seen have been volatility spikes — shortlived periods of turbulence, or big price swings, which quickly calm. One such period was a week in October which saw a “flash crash”, or sudden drop, in US Treasury yields. Then reassuring comments by central bankers restored calm. This week looks like another such spike — although the Vix has still to reach October’s levels. For investors preparing for 2015, what matters is whether the hedgehog-like pattern remains mostly harmless — in other words, that average levels of volatility do not rise excessively. Predicting volatility patterns is as perilous as forecasting any market trend. But for the benefit of nervous investors, here are some reasons why this year’s “low with spikes” experience could continue — and some why it might develop into something more worrisome. A good reason for expecting relative stability, and seeing spikes simply as buying opportunities, is the stillEuropean mesmerising influence of central banks. That may present political risk is long-term problems: “Marlikely to be a kets’ buoyancy hinges on central banks’ every word and main theme in deed,” observed Claudio the coming year Borio, head of the monetary and economic department at the Bank for International Settlements this week. But lately, central bankers have been successful in avoiding volatility. The US Federal Reserve ended its “quantitative easing” programme without upsets. Policy loosening by the European Central Bank and Bank of Japan has extended global rallies in equities and bonds. A less benign reason for believing calm will continue is that low economic growth and low inflation are usually associated with subaverage market volatility. Changes in financial regulation, however, may have increased market wobbliness. October’s “flash crash” showed that even in the huge US Treasuries market, sudden liquidity constraints could lead to wild price fluctuations. “In short, we think the world we live in is a world of low base-level volatility, but with increasingly frequent and sudden jumps,” UBS analysts concluded in a recent note. It is easy to see how those wobbles could build into generally higher volatility. While tensions over Ukraine or in the Middle East have largely been brushed off, European political risk is likely to be a main 2015 theme. Greece’s woes are again posing a threat to the eurozone’s integrity. Meanwhile, tumbling oil prices have shifted economic power away from oil exporters, with implications for global capital flows, and the BIS warned this week a stronger dollar was piling pressure on emerging market economies thathavereliedonUScurrencydenominateddebt.Inturn, the dollar’s appreciation results from growing divergence in central banks’ policies — also a source of potential volatility. For all their communication skills this year, differences have become starker as oil has fallen. Mario Draghi, ECB president, is focused on downward risks to alreadydangerously low inflation. In the US and UK, central banks want to normalise policies. William Dudley, Federal Reserve Bank of New York president, stresses the likely boosttoconsumerspendingfromlowerenergycosts. “That is an incredibly important difference in the mindsetsofcentralbanks,”saysScottThiel,fixed-incomestrategist at BlackRock. Then there are the perennial risks of a China slowdown and global currency wars. As such, 2014’s lowvolatilitymayhavemaskedunderlyingvulnerabilities. Of course, a bit more market volatility might be healthy. It would keep traders on edge and act as a check against excessive risk-taking — get too close to a hedgehog’s prickles and you go “ouch”. But that assumes volatility remains within limits — and does not become an animal that bites. [email protected]

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

economies, headed by Brazil, Russia, India and China. ft.com/beyondbrics Y Podcast The Hard Currency podcast takes a look at what is driving the global currency market. ft.com/podcasts Y Video View from the Markets features video interviews with leading market analysts. ft.com/vftm

Investors in junk-rated debt err on side of caution amid retreat in crude prices

Maturity time bomb looms in 2017 Bond maturity schedule for energy bonds

Top 10 US high-yield energy issuers*

$bn 50

VIVIANNE RODRIGUES — NEW YORK

Junk-rated energy bonds are looking cheap following a sell-off that has mirrored recent losses for oil prices, but bargain hunters are thin on the ground as dangers for the sector offset the discount. Low-rated energy bonds have not been this cheap in years, with some analysts’ estimates showing 18 per cent of energy sector issues in the Bank of America Merrill Lynch index are distressed, with prices well below face value. Junk bonds have moved in tandem with oil markets, where crude prices have dropped about 40 per cent since midsummer to trade below $65 a barrel on Wednesday. The plunge in prices has also weighed on major energy stocks across the globe. The S&P 600 energy sector has fallen 50 per cent from its peak in June. But while some investors see the drop in bond prices as an opportunity to buy back some of the securities at a hefty discount, others say it is too soon to add exposure to the sector given the volatility in oil prices. “This is a stunning drop. Who would have imagined just a couple of months ago that oil would be trading below $65 a barrel?” asks Sabur Moini, a high-yield portfolio manager at Payden & Rygel. “This sell-off is really challenging. On one side, we are all seeing some bonds, sold by some high-quality energy companies, suddenly become really cheap. But at the same time, it’s hard to justify buying energy debt right now as markto-market losses in portfolios are still mounting.” As of the start of December, junkrated energy debt has recorded a total return of minus 5.3 per cent, while the broad BofAML Index has gained about

40

30

ICE January Brent, the international crude marker, rose 21 cents to $64.24, while Nymex January West Texas Intermediate, the US oil benchmark, ticked 12 cents lower to $60.77 in late trading. A weaker US dollar provided further support for oil. Brent dropped almost $2.50 on Wednesday while WTI lost close to $2.90 after Opec said demand for the cartel’s crude in 2015 would be the lowest in a decade and below current levels. Heaping more pressure on oil prices were data from the US Energy Information Administration that showed an increase in crude stocks even though refiners were producing at record levels. The declaration from Saudi Arabia’s oil minister that the country had no intention of cutting production, in defence of higher prices, also pushed the price of oil lower. “Why should I cut production?” said Ali Al-Naimi at a conference in Lima. “This is a market and I’m selling in a market. Why should I cut?” At the meeting of Opec last month, Saudi Arabia — cartel’s leader and top producer — and its Gulf allies resisted calls from their poorer peers to cut production in order to balance the market. Sustained output from the oil producing group has coincided with relentless produc-

10

15

US marketed high-yield bonds 20

10

0 2014

15

16

17

18

19

Sources: Fitch US high-yield default index; Bloomberg; Dealogic

Oil price holds below $65 as data digested Oil stabilised yesterday but remained below $65 a barrel and close to a five-year low as market participants digested data that weighed on the oil price and continued to address the fallout of Opec’s decision not to cut production.

5

* In the last decade

Commodities

NEIL HUME AND ANJLI RAVAL

Deal value ($bn) 0 Chesapeake Energy Petroleos de Venezuela Plains Exploration & Prod Sabine Pass Liquefaction LINN Energy California Resources Denbury Resources Continental Resources SandRidge Energy Pacific Rubiales Energy

tion from the US and a weak consumption picture. The decision to stick to its 30m barrels a day output target has sent the price of oil spiralling lower — it is almost 45 per cent below its midJune level of $115 a barrel. “If the price is going to move anywhere, its going to go down,” said Michael Wittner, analyst at Société Générale. “[Wednesday’s] news flow underscores the key theme that has emerged from recent weeks, which is that prices will balance the market. US stats were bearish, Opec trimmed its demand forecasts and Naimi reinforced his message,” he said. Mr Wittner said oil market analysts would be watching announcements from oil companies to see how they respond to lower prices at the same time as keeping track of data on investment, production and rig counts. “We’ve started to see how some of the big oil companies are responding to a lower oil price environment. It’s only a matter of time for the smaller companies,” he added. Opec said in its monthly report that demand for its crude is estimated to stand at 28.92m barrels a day in 2015, which would be the weakest level since 2004, according to historical data. This is a downward revision of about 300,000 b/d from previous estimates. The figures indicate there will be a surplus of 1.13m b/d in 2015, and 1.83m b/d in the first half. Laura El-Katiri, a research fellow at Oxford Institute for Energy Studies, said it was important not to overinterpret the latest data from the producers’ group.

20

21

22

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24

2014=one month, 2024=years later than 2023

3.1 per cent. The drop in prices has pushed average yields on junk-rated energy bonds close to 9 per cent, compared with overall yields of 6.8 per cent for high-yield debt. “Those yields are tempting, especially when you know that some companies are well hedged for 2015,” says Mr Moini. “But with so many people nervous about these bonds, it’s probably best to err on the side of caution.” The pressure on junk-rated energy bonds has raised fears of an increase in default rates and a restructuring of issues — which have remained subdued since the financial crisis — should oil prices slide further. That is a problem for credit investors because energy companies have issued a large amount of debt in recent years, with the energy sector now accounting for about 16 per cent of the $1.3tn junk

Deal value ($bn) 400

Oil & gas sector (as a % of total) 20

300

15

200

10

100

5

0 2000

0 05

10

14

2014 is year-to-date

bond market, up from a share of 4 per cent a decade ago. Nearly $77bn of energy debt is rated B minus or lower, deep into junk territory, according to Fitch Ratings. “A further drop in oil will be painful for some of these companies and we may see some of them fail or be acquired,” says Michael Collins, a senior investment officer at Prudential. “The problem is that everybody has some degree of exposure to the sector and even if you cut your holdings, chances are you are still holding energy bonds.” The gloomy sentiment has weighed on the appetite for debt issuance from energy companies and resulted in borrowers delaying new rounds of financing. Bankers are saying that few energy deals are likely to get done as long as oil continues its downward slide. “New issue in energy right now is not

what people are looking for,” says Peter Toal, head of leveraged finance syndicate at Barclays. Still, energy bond issuers may have breathing room as the bulk of high-yield energy debt outstanding does not reach maturity until 2017, when about $13.7bn worth of bonds are due, according to Fitch. In addition, the default environment for the US high-yield market is expected to remain benign in 2015, even when accounting for potential troubles in the energy group. The corporate default rate for 2015 is forecast at 1.5-2 per cent — below the 4.3 per cent historic average, the rating agency says. “For now, we are all licking our wounds and sniffing out opportunities,” says Mr Collins. “But is this the right time to get back in or is it too early?” Additional reporting by Tracy Alloway in New York