WORLD BUSINESS NEWSPAPER

MONDAY 30 MAY 2016

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Productivity puzzle

Missing minority

Stupid robots

Why is hourly output falling?

We should lure over-fifties back to
the office — LUCY KELLAWAY, PAGE 12

AI will not challenge humans any
time soon — JONATHAN MARGOLIS, PAGE 14

—

EDWARD LUCE and FT VIEW, PAGES 8 & 9

Iraqi forces
step up
attacks on Isis

Briefing
i Brexit Tories threaten to oust Cameron
The prime minister faces the threat of a leadership

challenge following the EU referendum after Brexit
Tories turned their sights on him in highly personal
and apparently orchestrated attacks.— PAGE 2

A member of the Iraqi security forces
fires artillery during clashes with
Islamic State militants near Fallujah,
west of Baghdad yesterday.
Fighting flared as Iraqi efforts escalated to dislodge Isis from strongholds in
Fallujah and around Mosul, in northwestern Iraq. The Iraqi army, backed by
elite special forces, Shia militias and USled coalition air power, was positioned
around Fallujah, which was captured by
Isis in January 2014.
The US-led coalition is also helping
Kurdish forces mount a new offensive
against villages east of Mosul. The Kurdish Regional Security Council said
around 5,500 Peshmerga troops had
taken part in a dawn attack in the area
yesterday.

i Oil majors’ net debt soars by a third
The net debts of the 15 biggest North American and
European oil groups have surged by a third over the
past year, to $383bn, increasing their vulnerability
to another fall in crude prices.— PAGE 15

i Truckmakers set for record cartel fine
The EU is set to issue the biggest cartel
fine in its history, punishing Europe’s
largest truckmakers over charges

that they fixed prices and delayed
the introduction of new emission
technologies.— PAGE 5

i House price boom running out of steam

Alaa Al-Marjani/Reuters

Rothschild trust targets Alliance
to create listed group worth £5bn
3 Tie-up would end speculation over Dundee company 3 Approach made about takeover
ARASH MASSOUDI, CHRIS NEWLANDS
AND OLIVER RALPH

Jacob Rothschild’s investment trust has
approached its rival Alliance Trust
about a takeover to create a publicly
listed company with a market value of
more than £5bn.
RIT Capital Partners, the 55-year-old
investment trust chaired by Lord Rothschild, made an informal approach in
recent weeks and remains interested in
a tie-up, according to people briefed on
the matter.
A takeover of Dundee-based Alliance,
one of the UK’s oldest and biggest trusts,
would end years of speculation over the
future of the company, which has been
beset by battles with activist investors.
It would also combine two of the UK’s

best-known investment trusts, a type of

publicly listed closed-end fund that
dates back almost 150 years and allows
investors to avoid double taxation.
Alliance Trust, which had a market
value of £2.6bn at the end of last week,
declined to comment. RIT Capital,
worth £2.5bn, did not immediately
respond to a request for comment.
RIT Capital disclosed a stake of less
than 3 per cent in Alliance Trust last
year, according to UK regulatory filings.
A separate, large shareholder in Alliance Trust said: “The move makes
sense. The board would now be much
more receptive to offers given its newfound independence.”
It was too early to say what an RIT
takeover would mean for Alliance
Trust’s base in Dundee. Alliance Trust
has overhauled its leadership after

agreeing last year to appoint two of the
three independent directors nominated
by Elliott Advisors, the US activist
investor.
Elliott, which now holds 16 per cent of
the company’s shares, campaigned publicly for months about the company’s
poor performance and corporate governance before reaching the compromise last April.
Alliance Trust spent £3m on a push to
defend itself against Elliott, which its

leadership argued would “threaten the
very existence of the company”. Since
then, Alliance Trust has ousted Katherine Garrett-Cox, its chief executive, and
Karin Forseke, chairman, and brought
in industry veteran Robert Smith as
chairman to help lead a turnround.
In March, the company reported that

18%
Size of Jacob
Rothschild’s
holding in RIT
Capital Partners

5.4%
Alliance’s total
return last year
beat an industry
benchmark

its performance was improving, with
the total return for the trust reaching
5.4 per cent last year, outperforming a
key industry benchmark.
Alliance Trust’s discount to net asset
value also narrowed to 8.1 per cent compared to 12.4 per cent a year earlier. It
reported that total assets under management rose to around £5bn.
RIT, which is 18 per cent-owned by
Lord Rothschild, invests mostly in listed
companies but also has a range of other

stakes including private companies and
bonds.
Last year it increased its net asset
value per share by 8.1 per cent, beating
Alliance Trust.
At Friday’s close, RIT’s shares traded
at a 3 per cent premium to their net
asset value.

Moët tempts global connoisseurs with
€300 wine made on Tibetan plateau
ADAM THOMSON — PARIS

Royal Mail goes online
in a bid to lick Amazon
Royal Mail has made a string of
investments in small ecommerce and
technology companies, from a mobile
fashion app to a start-up selling
software in China, in a bid to break into
the digital world. Its move is, in effect,
the reverse of the strategy of Amazon,
which has become a big rival for
delivery services. Analysts say Royal
Mail’s drive is aimed at offering more
products and services linked to the
sale and dispatch of online orders.
Putting its stamp i PAGE 19

When Moët Hennessy unveils its latest

top-end wine to its leading international clients next month, it will not be
inviting guests to Bordeaux or even to
Burgundy. Instead, they will arrive at
the French embassy in China.
Ao Yun, as the powerful red is called, is
grown, produced and bottled in Adong,
an area perched 2,600m above sea level
on the edge of the Tibetan plateau in one
of the remotest places on Earth.
MH — part of French luxury conglomerate LVMH and owner of brands
including Dom Pérignon, Krug and Château d’Yquem — is targeting the global
crowd as much as the Chinese market
with the wine, priced at €300 a bottle.
“We are starting to see wine collectors
around the world wanting to have iconic
wines produced in China,” Jean-

Guillaume Prats, president of MH’s
estates and wines division, told the FT.
Mr Prats said Moet will begin marketing Ao Yun — the name means “sacred
cloud” — to connoisseurs and collectors
in Europe from next month, and in
China from October.
Production at the vineyard, in the
south-west province of Yunnan, close to
the Tibetan border, is a tiny 24,000 bottles but Mr Prats said the plan was to
reach 50,000 within the next five years.
The exotic location was picked for its climatic conditions, rare in China, of not
being too wet or too cold.
Critics have applauded the Ao Yun

2013, the first vintage — a fact that helps
explain the retail price. As Mr Prats said:
“We certainly would never have priced
it at that level if we were not confident or
if the critics around the world had not
said that it was an exceptional wine.”

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But the price tag is also a reflection of
the challenging logistics, which make Ao
Yun MH’s most expensive wine to produce. It employs 150 Tibetan farmers to
tend to the grapes on 320 terraced plots
that until recently were more used to
yaks, tomatoes and even the odd marijuana plant than to cabernet sauvignon
and cabernet franc.

Several producers have already
started to grow grapes in the area, where
Moet has leased 30 hectares of an available 300 considered apt for vines. But the
Paris-based producer is the only nonChinese investor. It is also the only one
that has taken the decision to produce
dry red wine on site, a four and a halfhour journey over unpaved roads from
Diqing Shangri-La, the nearest airport.
“The logistics of vinifying on the spot
is a real nightmare,” Mr Prats said with a
smile. “It’s an extraordinary venture.”

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Estate agents have started to suggest that the house
price boom in England may be over after inquiries
to estate agents, mortgage approvals and surveyors’
expectations of price rises declined.— PAGE 2

i Paris eyes probe into World Cup award
French authorities are considering a probe into
Fifa’s decision to award the 2022 World Cup to
Qatar, amid allegations that senior French figures
may have put pressure on the organisation.— PAGE 4


i Second golden age of steam for Scotland
Heliex Power, a start-up in East Kilbride, has said
that its system for capturing industrial waste energy
puts it ahead of the competition and will herald a
“second golden age for Scottish steam”.— PAGE 3

i Chinese ad condemned over racism
A detergent ad in which a woman puts an African
suitor into a washing machine to see him emerge as
a Chinese man in a sparkling white T-shirt has been
denounced for its casual racism.— PAGE 6

Datawatch
US employment in
energy-related activities
2015 (’000)
Ethanol
Solar energy
Oil and gas
extraction
Wind
Coal mining
Biodiesel
production
Source: IRENA

0

100


200

Solar employment
has continued its
rapid expansion in
the US and last
year it surpassed
that of oil and gas
extraction. Wind
employment rose
fast, too, while
jobs in ethanol
production are
still the most
numerous despite
a recent decline


★

2

FINANCIAL TIMES

Monday 30 May 2016

NATIONAL
Conservative infighting


Housing

Brexit Tories turn sights on Cameron

Khan warns
against new
home ‘money
laundering’

Eurosceptic members
make direct threat to oust
PM straight after the vote
GONZALO VIÑA AND GEORGE PARKER

David Cameron is facing the threat of a
leadership challenge following the EU
referendum after the Brexit camp
turned its sights on the prime minister
with highly personal attacks.
Bearing the hallmarks of an orchestrated campaign, Eurosceptic Tories
piled pressure on Mr Cameron, including a direct threat to oust him immediately after the vote.
The ratcheting up is also a sign they
are seeking to tighten their grip on the
party in case of a defeat on June 23 by
toppling the prime minister and replacing him with a more Eurosceptic leader.
The gravest warning for Mr Cameron

came from MP for North West Leicestershire Andrew Bridgen, a prominent
Tory backbencher.
He told the BBC yesterday that more

than 50 MPs were ready to move against
the prime minister because he is at
“odds with half of our parliamentary
party and probably 70 per cent of our
members and activist base”.
Other senior Tories have said privately that it is likely that Eurosceptics
will be able to round up the required signatures to mount a challenge.
Nadine Dorries, the Mid Bedfordshire
MP and ardent critic of Mr Cameron,
said she had already written to Graham
Brady, chairman of the backbench 1922
committee, which normally receives
signatures for a leadership challenge.
Ms Dorries said Remain would need
to win the vote by 60-40 for Mr Cameron to survive. Anything less and Mr
Cameron would be “toast within days”.

The warning came as Boris Johnson
and Michael Gove, the Brexit camp’s
most senior figures, launched a personal
attack on the prime minister over his
failure to control immigration.
They said his failure to bring down net
migration below 100,000 a year, a maniAn aide to the
prime minister said
he would focus on
winning the Brexit
vote despite the
threats against him


festo pledge made at the last election,
was “corrosive of public trust” because
it could not be delivered.
“This promise is plainly not achievable as long as the UK is a member of the
EU,” both men said in a letter to the
prime minister.
In a separate intervention, Priti Patel,

the employment minister, suggested Mr
Cameron and George Osborne, the
chancellor, were “too rich” and led lives
that were “insulated” from the pressures immigration put on low-income
Britons.
The personal attacks and the greater
emphasis on immigration comes as
Remain claims that those campaigning
to leave the EU are losing the economic
argument, as institutions from the
Treasury to the IMF warn Brexit would
deal a blow to growth.
Former prime minister Tony Blair
said yesterday that the Leave campaigners’ focus on immigration was because
they “have lost comprehensively the
debate on the economy”.
With campaigning entering its last
few weeks, the Brexit camp is struggling
to make a breakthrough in the polls.
The FT Poll Tracker has 46 per cent of
voters backing continued membership


of the EU and 41 per cent wanting to
leave. An aide to the prime minister said
Mr Cameron would focus on winning
the vote despite the threats against his
leadership and dismissed the idea of an
immediate reshuffle to replace Eurosceptic cabinet members with more
moderate MPs.
Any shake-up of the ministerial team
“probably will be” later, the aide added.
The attacks also come despite a promise by Mr Cameron on Friday to end personal attacks on Conservative colleagues for fear the party was descending further into civil war.
He, in effect, admitted that some of
the personal criticism of pro-Leave
Tories, including Boris Johnson, had
gone too far.
“I’m only ever going to make arguments from now on,” he said, promising
to stay out of personal criticism of opponents.

Red Rose day
England beat
Wales in Test
England’s Marland Yarde celebrates a
try by the prostrate Ben Youngs
during yesterday’s rugby union
match against Wales at Twickenham.
England scored five tries to Wales’s
one during their 27-13 victory.
Wales started well with an early try
by Rob Evans, but succumbed to
scores by the home side’s Luther
Burrell, Jack Clifford, Anthony

Watson, Yarde and Youngs.
England fly-half George Ford
missed six out of seven kicks at goal.
England now travel to Australia for
a Test series against the World Cup
runner-up, while Wales take on the
world champion All Blacks on a tour
of New Zealand. The opening Tests of
both tours are on June 11.
Press Association

Europe debate

Leave camp questions sovereignty of revenue-raising powers
VANESSA HOULDER

From tax dodgers to the “tampon tax”,
Britain has lost control over some of its
revenue-raising powers, according to
campaigners wanting to quit the EU.
Critics say the union makes taxing multinationals “extraordinarily difficult”.
Even though Brussels has recently
unveiled an “ambitious” programme for
ensuring fair taxation, past rulings by
Europe’s highest court have made it
harder to stop multinationals from
using EU tax havens.
The judges’ interpretation of the 1957
Treaty of Rome has also broken down
tax barriers between member states

and forced the Treasury to refund taxes
deemed to have been illegally levied.
Future payouts could be as high as
£10bn, although pro-Brexit campaign-

ers have acknowledged that leaving the
EU would not necessary stop them.
It is no surprise that taxation has featured in the Brexit debate: it is often at
the heart of arguments over national
sovereignty. But the arguments are
rarely clear-cut. For example, the Eurosceptics see the “tampon tax” — value
added tax on sanitary products — as a
symbol of Brussels’ tyranny. But the EU
is fleshing out proposals to give member
states greater freedom to set VAT rates.
The free movement of capital is
another example. Richard North, a
political analyst involved in the Leave
Alliance network that supports Brexit,
says it has deprived Britain “of a considerable element of tax sovereignty”.
But he acknowledges there are
bigger forces at work and says removing
EU restraints will simply expose

another level of global constraints.
Philip Baker, a tax barrister who supports remaining in the EU, says competitive pressures would have forced Britain to make changes to its corporate tax
rules even without the EU’s influence.

Campaigners say free
capital movement strips

UK of a ‘considerable
element of tax sovereignty’
“Companies taking challenges to the
European Court of Justice have driven a
lot of changes to tax law . . . but tax
competition would probably have
driven us down the same road.”
In principle, the UK could do more to
attract inward investment from outside

Fall in mortgage approvals
across the country far steeper
than analysts expected

NOVEMBER 7 2015

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Mr Khan said developers of new properties might have to “market them for the
first six months in London” to secure
planning permission, in an interview on
ITV’s Peston on Sunday programme.

He said: “We shouldn’t be embarrassed for saying ‘first dibs for Londoners’. We should not be embarrassed
about saying ‘our homes are homes’, not
gold bricks for investors in the Middle
East and Asia.”
Asked whether it was the end of the
‘oligarch property boom’, he said: “I
have got nothing against luxury properties being built in London. What we
can’t have is London being the world’s
capital for money laundering.”
This month David Cameron, the
prime minister, announced a crackdown on purchases involving “anonymous shell companies using plundered
or laundered cash”, saying that the
names of all property owners would be
publicly registered.
Mr Khan last week appointed James
Murray, an Islington councillor known
for his strict enforcement of affordable
housing targets in the north London
borough, as housing chief.
City Hall said details were still to be
worked out, but Mr Khan insisted he
would be able to act.
“We could have, for example, a condition for permission to build homes that
you must market them for the first six
months in London.”
A City Hall spokesperson added: “The
mayor intends to work closely with
partners . . . to build more genuinely
affordable homes for Londoners and
put right the appalling housing mess left

behind by his predecessor.”
Boris Johnson, the previous mayor,
had also expressed frustration over foreign investment. In 2014, he said: “I
want [homes] marketed first and sold
first to the people of this country, not to
‘oligarchs from the Planet Zog’.” In the
same year he launched a ‘concordat’,
committing to give Londoners first
option on new homes in the capital.
Some property experts say interfering
with foreign investment could backfire.
Adam Challis, head of residential
research at JLL, a professional services
firm, said domestic demand was not
strong enough to drive off-plan sales.
He said restricting overseas investors
would destroy the viability of most
schemes, and would cut the level of
affordable housing delivery. “We should
remember that Ken Livingstone [a
former mayor] had this aim and never
got close to implementing it.”
Brexit campaigners have also questioned whether plans to give Londoners
first option would be enforceable given
the ‘free movement of capital’ rules in
the EU treaties.
Vote Leave said its research showed
the rules hindered a crackdown on offshore people and companies buying
property in the UK.
The general principle of free movement of capital among EU countries —

as well as between them and non-EU
countries — includes the rights of citizens to purchase property.
Additional reporting by Gonzalo Vina

Evidence grows of an end to the house price boom

Subscribe to the FT today at ft.com/subscription

Number One Southwark Bridge, London SE1 9HL

would go some way to protect the UK if
it moved outside the bloc. It requires EU
countries to extend free movement of
capital to third countries, as well as
other member states.
It is even possible that Brexit might
have a bigger impact on EU tax policies
than on Britain. The European Commission wants to press ahead with harmonisation of corporation taxation; the UK is
its most vocal opponent. Allen & Overy,
an international law firm, says “the loss
of a large and influential member state
that is opposed to it could be decisive”.

Sadiq Khan, London’s new mayor, has
proposed giving its residents the first
option on new homes, as he warned
against allowing the city to be “the
world’s capital for money laundering”.

Property. Analysts’ predictions


MAKE A SMART INVESTMENT

FINANCIAL TIMES

the EU, which is using its state aid rules
to tackle harmful tax competition. But it
would still be affected by the G20 crackdown on avoidance by multinationals.
Daniel Gutmann, a partner at the
international law firm CMS and a professor of tax law at the Sorbonne Law
School, said the impact of Brexit was
likely to be most evident in value added
tax. Import VAT would be imposed
when goods were traded between the
EU and the UK. Even though there
would be a mechanism for refund of
VAT, “cash flow could be a major consideration”.
Cross-border transactions might face
higher taxes under Brexit, as EU subsidiaries could no longer rely on directives
that eliminate withholding taxes. Yet
in a curious twist, the 1992 Maastricht
treaty — reviled by Eurosceptics —

VANESSA HOULDER

21/10/2015 10:51

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Signs of faltering demand in the housing
market are prompting estate agents and
analysts to suggest England’s house
price boom may be ending.
Paul Smith, chief executive of the
Haart agency, which has more than 100
branches, said: “We believe the nation
has now neared the limit in terms of
price rises.”
Inquiries declined in April at their
second-highest rate since 2008, according to the Royal Institution of Chartered
Surveyors — a trend that Mike Prew, an
equity analyst at the investment bank
Jefferies, said “signals this slowdown
could morph into a period of sustained
house price deflation”.
Drops in this Rics measure are

strongly correlated with price falls
about a year later, Mr Prew added. “The
balance of surveyors expecting higher
house prices 12 months ahead has also

collapsed, suggesting something more
than just short-term factors.”
Mortgage approvals across the country dropped 8.6 per cent in April, far
steeper than analysts had expected.
This was partly down to the aftermath
of a demand surge in March as buy-tolet investors rushed to beat a new stamp
duty surcharge, while caution over the
June referendum on EU membership
also played a role, Rics said.
But broader factors are also at work,
including slowing economic growth and
price rises that have stretched affordability to breaking point for many in London and the south-east, where house
price inflation has been most extreme.
“There are plenty of headwinds facing
London irrespective of the referendum
vote. It’s down to affordability. At some
point you have to run out of buyers,”
said Richard Donnell, director of
research at Hometrack, an analysis
company.
Average prices in the capital rose 54
per cent between the start of 2012 and
March this year, according to the Land
Registry, contributing to a nationwide
rise of 20 per cent. In London, prices


stand at 9.2 times average earnings,
according to Nationwide.
Mr Donnell said price growth had
slowed this year in all but two London
boroughs, while the number of homes
changing hands declined 7 per cent
across the capital last year. This came as
transaction levels and prices fell in the
most expensive districts.
Henry Pryor, a buying agent, said he
was aware of homes remaining on the

8.6%

9.2

Decrease in
mortgage
approvals across
England in April

Cost of London
houses as a
multiple of
average earnings

market for three to four weeks without a
single viewing. “How do you persuade
people to buy something today that they

think will be cheaper tomorrow?” he
said.
Lucian Cook, director of residential
research at estate agency Savills, said:
“We are clearly hitting some affordability ceilings in London.” But the timing
and speed of a rise in interest rates

would be a key factor in the direction of
the broader market, he added.
Mr Cook is sceptical the market is set
for a big downturn, however. If the UK
does not vote to leave the EU, he said, “it
is difficult to see what the catalyst would
be for a significant correction in the
housing market”.
Robin Hardy of Shore Capital said the
market was also plagued by “mortgage
zombies”, defined as “growing numbers
of potential movers struggling with a
lack of equity due to the various types of
assistance buyers received . . . when
they entered the market.
“Parental gifts, help-to-buy or other
shared equity loans and long-dated
mortgages all hamper the creation of
equity. We see growing numbers of
‘mortgage zombies’ primarily from
those who were first-time buyers at any
time in the last five to seven years.”
But analysts have yet to downgrade

their house price forecasts, with many
waiting until after the referendum to
reassess the market. Savills predicted
late last year that prices in “mainstream” UK markets would rise 5 per
cent this year and 17 per cent by 2020.


★

Monday 30 May 2016

3

FINANCIAL TIMES

NATIONAL

Environmental issues left behind as
EU referendum rhetoric intensifies

State-funded advice

Law Society
head warns on
effects of legal
aid reforms

Campaigners and companies decry lack of debate around Europe’s green rules and the implications of a Brexit
BY JANE CROFT


The head of the Law Society has
warned that reforms to state-subsidised legal aid mean there are certain
parts of the country where people are
finding it difficult to access advice on
specific issues such as housing.

PILITA CLARK
ENVIRONMENT CORRESPONDENT

Few topics seem to have been ignored in
an increasingly frenzied EU referendum
debate that has covered everything
from Hitler to house prices.
But as the June 23 vote nears, anxiety
is growing among some companies and
many green groups about the relatively
scant attention being paid to how a
Brexit might affect the environment
and UK energy industries.
Neither Leave nor Remain campaign
leaders have focused heavily on the referendum’s implications for EU rules
that shape the UK’s approach to product
standards, air pollution, climate
change, wildlife protection and energy
use.
“It’s a major oversight,” says Nick
Molho, executive director of the Aldersgate Group, a sustainable business body
representing companies operating in
the UK with a combined annual global
turnover of more than £400bn.

“It’s alienating part of the electorate,
especially young people who are very
interested in the environment,” he said.
The future of common product standards are a particular concern for exporters selling to the single market, he
added, as well as EU energy and climate
targets that have been “a real driver for
low carbon goods”, such as ultra low
emissions vehicles.
One of the Aldersgate Group’s largest
members is Siemens, the German
industrial conglomerate.
It sent a shudder through the renewable energy sector with an April warning
that a Brexit “could make the UK a less
attractive place to do business and may
become a factor when Siemens is considering future investment here”.
The company makes hundreds of the
turbines used in the UK’s huge offshore
wind farms and has agreed to spend
£160m on Yorkshire production facilities.
The UK attained a record 25 per cent
of its electricity from renewable generators last year, partly because of its own
2008 Climate Change Act, one of the
most far-reaching in the EU.
But growth was also driven by EU targets obliging the UK to draw 15 per cent
of its energy from renewables by 2020.
More EU renewables targets are
planned for 2030, but some analysts
believe that a Brexit would embolden
critics eager to dilute environmental
laws they say are pushing up energy

prices and making companies uncompetitive.
Lord Deben, Conservative peer and
chairman of the Committee on Climate
Change — the independent body that
advises the government on meeting its
environmental targets — says the UK
would have much less clout outside the
EU, raising pressure on businesses and
making them less willing to accept environmental restrictions.

25%

Share of UK
electricity that
came from
renewables in 2015

The London
Array, located in
the Thames
Estuary, is the
world’s biggest
offshore wind
farm. Michael
Liebreich,
Bloomberg New
Energy Finance
research group
founder, below,
says the UK will

not slide back to
its old polluting
ways if it leaves
the EU
Simon Dawson/Bloomberg

Competition arguments would “really
have force” if the UK was trying to compete on its own with the EU and the US,
he says.
The broader energy industry also
faces challenges if the UK leaves the EU,
according to a report that was released
last week by the Chatham House policy
institute.
The UK was a net exporter of energy
at the turn of the century, but the end of
domestic coal mining and depletion of
North Sea oil and gas reserves means it
now relies on imports for 45 per cent of
its consumption, the study says.
“As a growing share of the UK’s electricity is exchanged with EU partners, it
would be neither possible nor desirable
to ‘unplug’ the UK from Europe’s energy
networks,” the report said.
“Overall, the option of remaining in

the EU provides the highest levels of certainty for continued energy investment.”
Many environmental figures, meanwhile, say that EU directives relating to
bathing water, wildlife protection and
air quality helped the UK shed its reputation as the “dirty man of Europe” and

are still needed to keep the country
clean.
Not everyone agrees. Michael Liebreich, founder of the Bloomberg New
Energy Finance research group, says it is
“complete and utter tosh” to suggest the
UK would slide back to its old polluting
ways if it left the EU.
The “dieselgate” scandal and the common fisheries policy show the EU’s environmental record is not nearly as good
as some claim, he says, and there are
wider concerns about green technologies.
“The environmental community is
nearly unanimous that Brexit would be
a disaster for the environment,” Mr Liebreich told the FT. “But they are missing
the vital role of innovation. We won’t
pull our weight developing solutions to
climate change if we’re stuck in a declinist, low-innovation, protectionistinclined bloc.”
Such arguments carry little weight
with the bulk of green campaigners,
however, who have resorted to organis-

Poll of polls
What you need
to know with 23
days until the
referendum
ft.com/brexit

Efficiency. Innovation

MURE DICKIE — EAST KILBRIDE


It has been a long time since Scotland
was known as a leader in steam technology, but a start-up in East Kilbride reckons that should be about to change.
Buoyed by strong sales and a round of
investment that included BP and the
Scottish government, Heliex Power says
its system for capturing industrial waste
energy heralds a “second golden age for
Scottish steam”.
“The numbers that we were coming
up with in market analysis were so large,
in value and in quantity, that I had some
difficulty believing them,” says Dan
Wright, company founder and chief
technology officer.
Heliex’s exuberance reflects growing
international interest in new technologies aimed at tapping sources of power
previously considered too technically
difficult or too small to be commercially
exploitable.
The trend is powered by engineering
innovation and global pressure to raise
energy efficiency and reduce greenhouse gas emissions.
In Heliex’s case, a new approach
developed at London’s City University is
used to tap the energy in relatively lowtemperature “wet” steam, a common
byproduct of many industrial processes.
While turbine generators can efficiently generate electricity from high-

temperature “dry” steam, they cope

badly with pressure fluctuations associated with wet steam and suffer serious
erosion from the water droplets it contains.
Heliex uses instead a much more
robust screw expander, a pair of rotating
screws that transform the energy in the
wet steam into movement that can drive
a standard power generator or other
machine.
The company is not alone in seeking
to use screw expanders to tap wet steam
power. China’s Kaishan Technologies
markets a system it says can generate 30
per cent more power than a small turbine. Langson Energy of the US in April
installed a 250kW “steam machine” at

an ethanol plant in South Dakota. But
Heliex says it is well ahead of its competition. The company has installed 38
machines in the UK and overseas. Revenues jumped to £2.7m in the year to
March from £900,000 in 2014/15 and
Chris Armitage, chief executive, says he
expects them to double again this year
and next.
It recently raised £2.2m from existing
shareholder BP Ventures, an arm of the
international energy major, and a private equity fund owned by Irish utility
ESB.
Combined with a matching £2m
investment from the state-owned Scottish Investment Bank, the round took to
£16.4m the investment in the company,


The Heliex technology
How it works
The screw
expander has
two rotating
screws that
transform energy
from wet steam
into power
that can drive
standard
generators or
feed power back
into the grid

Pressure
reduction valve

Industrial process
Graphic: Paul McCallum Source: Heliex Power

EU target for the
UK share of energy
from renewables
by 2020

ing conferences, roundtables and studies to highlight environmental issues
they say have been sorely missing in the
Brexit debate.
Sir Edward Davey, the former Liberal

Democrat energy secretary, told a conference in May that more large conservation groups needed to “get off the
fence” and start making the EU Remain
case.
The National Trust and the World
Wildlife Fund are staying neutral on a
decision they say is for the British people, though David Nussbaum, WWF
chief executive, says the lack of discussion about the environment has been
“hugely frustrating”.
There are some signs that politicians
are finally heeding the message. Labour
leader Jeremy Corbyn made a rare
appearance with his predecessor, Ed
Miliband, last week at a North Lincolnshire solar farm to warn that Britain’s
membership of the EU was vital in the
fight against climate change.
There is clearly a long way to go.
Mary Creagh, a Labour MP, told the
same conference Sir Edward attended
that she had been alarmed to hear party
supporters say they planned to vote for
Brexit, because they mistakenly
thought Labour must be opposing a
Conservative prime minister’s push to
remain.

Public pressure

Steam power gets its second chance with Scottish start-up
Using the byproduct of many
industrial processes drives

source of renewable energy

15%

Catherine Dixon, chief executive of the
professional body that represents solicitors in England and Wales, said some
firms had stopped doing legal aid work
in certain areas of law, saying they could
not afford to work for the low fees the
government now paid.
She gave the example of housing
advice, which has 139 legal aid areas. In
39 of these, there is only one provider
while in at least two areas there is no
provider at all. Shropshire and Suffolk
have no legal aid providers of housing
advice, the Law Society said.
“If you want housing advice in those
areas, there’s no one available to give
that through legal aid,” she said. “In the
areas where there’s only one provider,
for example Cornwall, obviously you’re
going to struggle.”
TheLawSocietyopposedcutsmadeby
the coalition government in 2013 to save
£350m a year from the £2bn legal aid
budget. The cuts removed eligibility for
legal aid in certain areas of law such as
divorce and family law, although some
areas such as housing law remained

within its scope. The Ministry of Justice
said at the time that the UK spent more
onlegalaidthananyotherEUnation.
“What it means is that about 600,000
fewer people per annum are entitled to
civil legal aid, and there’s been a reduction in the civil legal aid budget of about
£350m per annum,” said Ms Dixon.
The Law Society has said that some
law firms decided not to rebid for legal
aid contracts in the last round of awards
in 2013 because of the low rates payable.
The small number of firms doing legal
aid work in certain areas of the law
meant there could also be conflicts of
interest, the Law Society said. “If
that firm is advising maybe your partner . . . you could end up in a situation
where you can’t get advice,” said
Ms Dixon.
Some firms, she added, particularly
those dealing with criminal legal aid,
were shutting or consolidating to survive. “If you look at what a junior solicitor would get through undertaking legal
aid work, it’s less than you’d be paid as a
nurse or teacher,” she said.
The cuts to legal aid have led to a rise
in “litigants in person” she said —
because people bringing cases could not
afford advice and had to represent
themselves. This placed additional
strain on judges, who had to help
untrained people navigate the courts

system. Dealing with the impact of legal
aid cuts on the society’s members has
been a key issue during Ms Dixon’s first
year as chief executive. “There are no
two ways about it; it places a greater
burden on the system,” she said.

Bypass

Screw steam
expander

based in an East Kilbride technology
park south of Glasgow, once the site of
the UK’s National Engineering Laboratory.
The laboratory was where widely
used “steam tables” for calculation of
pressure, heat and volume were developed nearly half a century ago, itself an
echo of the 18th and 19th century innovation of Scottish steam pioneers such
as James Watt.
Mr Wright says the new investment
will help Heliex market its system,
shipped as a self-contained blue steel
box that can be plugged into existing
steam and electricity systems. In some
cases it can take the place of existing
equipment needed to reduce steam
pressure for industrial processes, while
helping to meet a factory’s electricity
needs or feed power back to the grid.

A Heliex machine is already humming away happily at the Royal Alexandra Hospital in Paisley, west of Glasgow,
where steam from a new biomass boiler
is used to generate 108kW of electricity
before being fed into a district heating
system.
Chris O’Reilly, a consultant involved
in installing the system, says including
the Heliex unit required a higher pressure boiler than originally planned, but
that the change should pay for itself in
three to five years.
The paperwork needed to secure
renewable energy subsidies was more
onerous than the “reasonably straightforward” inclusion of the Heliex generator, suggests Mr O’Reilly. “There’s a lot
of forms to fill in,” he says.

Tax planning backlash forces
more groups into transparency
VANESSA HOULDER

Nearly two-thirds of FTSE 100 companies disclose information about their
approach to taxation, up from under
half two years ago.
The trend is a sign of the growing pressure to become more transparent about
tax, following a backlash against aggressive planning.
The analysis by PwC, the professional
services firm, showed that 64 companies made disclosures in their latest
accounts, up from 49 two years earlier.
Companies are volunteering information in response to public pressure, as
well as preparing for new laws mandating more transparency. The UK is introducing rules forcing companies to disclose their tax strategy, while Brussels
has proposed making them publish

where they earn profits and pay taxes in
Europe.
Regulators are also making demands
for more transparency. PwC said it had
“already seen early signs of companies
changing their disclosures of tax numbers” in light of a review by the Financial
Reporting Council, the corporate governance regulator.
Investors have begun to put pressure
on companies to become more transparent about their tax payments. In a
report published last year, PRI, an international network of fund managers pursuing sustainable investment strategies,
said the opacity around companies’ tax
affairs meant investors knew little

about the risks associated with them.
Andrew Packman, a partner at PwC,
said approaches varied with companies’
circumstances. Some — banks and
extractive companies — were already
required to publish details of tax payments, while others had been targeted
by campaigners and wanted to provide a
more detailed explanation of their position.
Some companies wanted to make disclosures because their boards supported transparency while those
putting little information in the public
domain were often foreign-based multinationals with limited UK activity.
But the tax line remains difficult to
interpret. Just 18 FTSE 100 companies
— up from 14 last year — provide an
explanation of the difference between
the tax charge in the accounts and the
cash tax actually paid by the group.

The push by Brussels to make some of
this data public is opposed by Germany
and some other countries, which say it
would put commercially sensitive
details into the public domain. But Mr
Packman said the “general assumption”
was that the data would become public
in the medium term because of the
weight of opinion in the European Parliament.
PwC reviewed the annual reports,
company websites and corporate
responsibility statements for financial
years ending between January and
December 2015, for all companies listed
in the FTSE 100 at March 31 2016.


★

4

FINANCIAL TIMES

Monday 30 May 2016

INTERNATIONAL
Football World Cup

Immigration fears


France considers probe into Qatar decision

Swiss seek
to rework
relationship
with EU

Move follows allegations
that senior figures may
have put pressure on Fifa
ANNE-SYLVAINE CHASSANY — PARIS

French authorities are considering
launching an inquiry into Fifa’s decision
to award the 2022 World Cup to Qatar,
amid allegations that senior figures in
France may have exerted pressure on
football’s world governing body.
Eliane Houlette, France’s financial
prosecutor, said such an inquiry would
investigate the role played by Michel
Platini, former president of Uefa, European football’s governing body. She
declined to comment on allegations

about the role of the government and
the former president Nicolas Sarkozy.
“We have some pieces of information
that push us to [open an investigation],”
she told Europe 1 radio station yesterday. “If there is an investigation, Michel
Platini’s role will certainly be an essential part, but the investigation will not

centre on him.”
The comments come amid allegations
of corruption and collusion in connection with Fifa’s decision in 2010 to select
Qatar as host of the 2022 tournament.
The FBI in the US is already investigating how Qatar was awarded the event as
part of an investigation into corruption
at the organisation.
In an interview with German newspaper Welt am Sonntag last year, Sepp

Blatter, Fifa’s former chief, alleged Mr
Sarkozy had exerted pressure on world
football’s governing body. He made the
claims after French magazine France
Football alleged that the then president
had asked Mr Platini to help Qatar during a meeting at the Elysée Palace
shortly before Fifa’s decision to choose
the Gulf state in 2010. Mr Platini and Mr
Sarkozy have denied wrongdoing.
A separate French investigation
would come at a bad time for Mr
Sarkozy, who is expected to announce
his candidacy for the centre-right presidential nomination in the next few
weeks. The former president is back at
the helm of the Republican party after
being defeated by Socialist leader
François Hollande in 2012.

The claims are part of many allegations swirling around Fifa. In March,
French financial prosecutors searched
the French football federation in relation to a SFr2m payment Mr Blatter

allegedly made to Mr Platini.
While Mr Blatter and Mr Platini say
the payment, made in February 2011,
was back pay for work Mr Platini carried out for Fifa between 1998 and 2002,
there was no contract and no record of
the payment in Fifa’s accounts.
Ms Houlette is also investigating suspicious payments worth about $2m to a
company linked to Papa Massata Diack,
the son of Lamine Diack, former chief of
the International Association of Athletics Federations, over alleged connections to Japan’s successful bid to host the

2020 Olympic Games. The younger Mr
Diack previously told The Guardian, the
UK newspaper, that he did not wish to
comment on the investigation as he was
“part of the legal process”.
“The governance of those big international sports organisations is opaque
and autocratic,” Ms Houlette said.
Ms Houlette is also investigating
Google and McDonald’s over suspected
tax fraud. Last week, nearly 100 officers
raided Google’s Paris offices as part of
“Opération Tulipe” — the code name for
the investigation looking into suspicions
that the US technology group may owe
the French state back taxes worth as
much as €1.6bn. They came out with
“several teraoctets” of documents, Ms
Houlette said.


Politics. Brexit effects

Netherlands faces referendum shockwave
Anti-federalism is rising and
activists will want to capitalise
if Britain votes to leave the EU
SIMON KUPER — THE HAGUE

It is a traditional Dutch scene: morning
commuters cycle through the Binnenhof, the ancient courtyard where the
Dutch parliament sits. MPs in blue suits
and brown brogues trudge through the
spring drizzle. In the corner tower is the
prime minister’s office. The placid Binnenhof has been the country’s seat of
power for centuries.
But now the established political
order has been weakened by voters
angry at The Hague and Brussels alike.
The nativist anti-European PVV
party led by Geert Wilders is topping
opinion polls ahead of parliamentary
elections next March. After the UK
votes on June 23 on whether to remain a
member of the EU, the Netherlands
could lead the next assault on the bloc.
Many politicians say that if Britain
decides to leave, Dutch Europhobe
activists could force referendums each
time the bloc agrees new treaties or
imposes changes on the country’s laws.

The Netherlands was one of the six
founders of the European Economic
Community in 1957. Today 64 per cent
of people in the small trading nation still
favour staying in the EU, according to a
poll by Ipsos this month.
“Most people know how the sandwich
is buttered and that they benefit from
the EU,” says Anne Mulder, Europe
spokesman for the centre-right VVD.
But, as in the UK, there is now a strong
national anti-federalist consensus that
runs from far left through the centre to
far right. Mr Mulder sums up moderate
Dutch Euroscepticism: “We believe in
the EU, but we don’t believe in the
believers in the EU.”
Harry van Bommel, MP for the leftist
Socialistische Partij, adds: “Federalism
has become a dirty word when applied
to Europe.”
Dutch voters began turning Eurosceptic when euro notes and coins were
introduced in 2002, he says. More
recently, bailouts for Greece, the
migrant crisis and the perceived breaking of European fiscal rules by southern
states have heightened anger.
Jeroen Dijsselbloem, the Dutch
finance minister and head of the
Eurogroup of finance ministers,


The Hague:
many Dutch
MPs worry that
if the UK leaves
the EU,
federalists will
try to give
Brussels more
powers; PVV
party leader
Geert Wilders,
below

says many Dutch people are disquieted
by a “borderless EU” — a union that has
grown without setting the limits of
either its territory or its powers.
He points to the phrase “ever closer
union” in the preamble to the EEC’s
founding treaty. “The Netherlands is
not very inclined to centralism,” he says.
After a law last year allowed citizens
to petition for referendums on new laws
or treaties, Eurosceptics immediately
forced a vote on the EU’s association
pact with Ukraine. In April voters
rejected it, on turnout of just 32 per
cent. Dutch referendums are merely
advisory to governments. But many in
The Hague see the Ukraine episode as a

harbinger of more such votes.
Mr Wilders says that if Brexit happens, he will “immediately” propose a
referendum on Dutch exit from the EU.
Sitting in his office in front of a portrait of Winston Churchill, Britain’s wartime leader, he tells the FT: “When, after
Brexit, it turns out that the lights don’t
go out and war doesn’t come, that could
be an enormous stimulus not just for the
Netherlands but for several countries to

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think of leaving.” He sees Switzerland —
small, flexible and making its own trade
deals outside the EU — as a model for the
Netherlands.
But under current legislation the
country only permits referendums on
new initiatives, not on previously established issues such as membership itself.
Thierry Baudet, a leader of the referendum movement, says the Dutch
could hold votes on topics such as the
euro or open borders. He argues that if
they voted “Nee” on a fundamental
European issue, “then you’d get that in
other countries too and you would have
a domino effect. That would be nice.”
Few Dutch people imagine their country as an independent global actor the
way many Leave campaigners see a
post-Brexit Britain. “Our global empire
is a little further behind us than in the
UK,” Mr Dijsselbloem says. “Co-operation lies deep in our thinking.”

Still, a Brexit would shake the Netherlands. “Very strong trade, investment
and financial links with the UK” make it
the European nation most exposed to
Brexit, say consultants Global Counsel.

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Geert Wilders

Many Dutch politicians worry that if
the Eurosceptic UK left the EU, federalists would try to give Brussels more
powers. Halbe Zijlstra, the VVD’s parliamentary leader, notes that Britain is the
biggest country in a free-market, antifederalist camp that also includes the
Netherlands, Denmark and Sweden.
He laments: “If the British leave, we’ll
have lost an important partner and protectionist spirits will get a louder voice.”
Like others in The Hague, he warns that
Denmark might follow the UK to the
exit. He calls the EU “a house of cards”.
The Dutch are also Berlin’s allies, but
Mr Zijlstra warns: “[They] are very federalist on Europe and we are not.”
But other than Mr Wilders’ PVV, the

big Dutch parties see their country’s
future inside the EU. Most simply wish
for a more limited and effective Europe.
“The EU must deliver,” says Mr
Mulder — especially on opening up the
internal market and controlling European borders. Most Dutch feel nostalgia
not for their lost empire, but for the
modest trade-oriented EEC that they
joined in 1957.

Switzerland will lobby top European
leaders attending this week’s opening
of the world’s longest rail tunnel for
faster progress on reworking the country’s relations with the EU.
Renegotiation has been held up by Britain’s referendum on membership of the
bloc. The Gotthard Base Tunnel ceremony on Wednesday would be a “good
opportunity” to discuss the challenges
facing Swiss-EU relations, Didier Burkhalter, the Swiss foreign minister, told
the Financial Times. Those expected to
attend include Angela Merkel, Germany’s chancellor, President François
Hollande of France and Matteo Renzi,
Italy’s prime minister.
The 57km rail tunnel, which cost
SFr12bn ($12bn) to build, will cut travelling times across the Swiss Alps and
will become part of one of Europe’s most
heavily used transport corridors, connecting the ports of Rotterdam in northern Europe and Genoa in the south.
The opening was a chance “to show
that we’re working in good faith and contributingtoEurope’scohesion”,saidMax
Stern, co-founder of Foraus, the Swiss
foreign policy forum. “That’s important

because we have not been very positive
inthisregardinrecentyears.”
Swiss voters rejected EU membership
in 1992. Instead Switzerland negotiated
a web of bilateral agreements with the
bloc and has aligned many of its laws
with those of its neighbours.
However, the contracts have been
under threat since the electorate voted
in a referendum two years ago for quotas on immigration from EU countries —
which would violate the EU’s cherished
free movement of people. The government hopes a compromise deal could be
struck, for instance by agreeing an
“emergency brake” that would let Switzerland impose controls on immigration in exceptional circumstances.
But because Brussels does not want to
make life easier for countries outside
the EU, talks with Bern have been put on
ice until after the UK referendum vote
on June 23.
The delay may have weakened Switzerland’s negotiating hand as its immigration referendum result has to be
implemented by February next year —
three years after the vote was held —
including parliamentary approvals.
Following the UK vote, there would be
a “race against time” to reach a deal,
Johann Schneider-Ammann, Swiss
president, told the NZZ newspaper last
week. A detailed agreement was
unlikely before the summer holidays,
but he hoped that “we can sketch out

together the main points” by then.
Any threat to the bilateral contracts
with the EU would alarm Swiss businesses, which rely on the free flow of
goods and labour. But fears about immigration have risen as Europe has struggled to cope with refugees fleeing wars
in countries such as Syria.
The Eurosceptic Swiss People’s party
won the largest share of the vote in last
October’s parliamentary elections.
Reconciling Switzerland’s conflicting
objectives may not be possible, analysts
warn. “So the only solution will be
another referendum in which the Swiss
chose between keeping the bilaterals
but getting less on immigration or having immigration quotas but losing the
bilaterals,” said Mr Stern.

Youth unemployment

Italian leader’s early pension proposal draws mixed reaction
JAMES POLITI AND DAVIDE GHIGLIONE
ROME

Read beyond the expected

‘When,
after Brexit,
it turns out
that the
lights don’t
go out and

war doesn’t
come, that
could be an
enormous
stimulus’

RALPH ATKINS — ZÜRICH

A proposal by Mario Renzi to allow
workers to claim their state pensions
early is likely to please tens of thousands
of Italians who have seen their retirement age drift higher. But some in Rome
fear it will provoke the ire of Brussels
amid concern over Italy’s public
finances.
The prime minister’s plan, which
would allow pensions to be paid up to
three years early, is aimed at increasing
generational turnover in Italy’s labour
market and tackling stubbornly high
youth unemployment.
Mr Renzi floated the idea during a live
Twitter discussion this month and said
he would aim to include the measure in
next year’s budget, due to be presented
in October.
The plan, whose details have yet to be
finalised, will be welcomed by Italian
businesses eager to replace older, disenchanted staff with younger, keener
employees.

But for pensioners, the proposal,
which would allow retirement at 63.7
instead of 66.7, comes with a condition.

To avoid weighing on Italy’s public
finances, a penalty of between 1 and 4
per cent would be imposed on early
retirement cheques, say Italian officials.
This would either be paid by individuals, or in circumstances such as disability, by the government, or by companies
whose employees took early retirement
because of a restructuring.
The prospect of a penalty has drawn
opposition from Italian trade unions.
“These are very low pensions already, so
a penalty would hurt a lot; it would be a
punishment,” said Massimo Gibelli, a
spokesman for the CGIL, Italy’s largest
trade union. “People don’t retire
because it’s a privilege, but because they
can’t handle work any more.”
The scheme could also spark concern
in Brussels. Although the penalty is
expected to make it budget-neutral in
the long run, it would involve higher
short-term outlays to cover the cost of
workers drawing pensions earlier than
originally planned. These could be as
much as €1.6bn in the first year and up
to about €6bn in 2021, according to figures from INPS, the national pensions
administrator.

But some in Rome fear the EU might

see this as an unwinding of reforms
passed by Mario Monti’s technocratic
government at the height of the eurozone crisis in 2011, when Rome was
under pressure to rein in public spending. The former Italian prime minister’s
changes to pensions, which lifted the
retirement age, were widely welcomed
by international institutions as
Mario Renzi is
trying to address
the nation’s jobless
youth figure, which
stood at 36.7 per
cent in March

strengthening Italy’s welfare system.
But observers suggest the overriding
goal for Mr Renzi, who took office in
early 2014 with a mission to revitalise
the country after years of economic
stagnation and recession, is to find a way
of tackling youth unemployment, which
fell to 36.7 per cent in March but
remains well above the EU average of
21.2 per cent.
Tito Boeri, an economist who heads
INPS, supports the plan. “It relies on
incentives instead of rigid constraints


and introduces freedom of choice,” he
said.
Stefano Scarpetta, director for
employment, labour and social affairs
at the OECD in Paris, said across
advanced economies there was “no evidence” that early retirement generated
more jobs for young people in the long
term.
Meanwhile, Mr Renzi’s team is considering creative ways of financing the
plan to eliminate any impact on Italy’s
budget and allay Brussels’ concerns.
One emerging idea is paying with bank
loans so the government would avoid
putting in money up front. But that has
drawn scepticism from trade unions
and some opposition politicians.
On the streets of central Rome, however, the idea of flexible retirement was
generally supported.
“Personally, I would retire. I can’t
wait . . . Even if I’d probably lose
money,” said Sabrina, a 55-year-old high
school teacher.
Claudio, a 53-year-old taxi driver, was
not so sure: “I have to know how much
money I’m going to lose. If it’s too much
I’ll work three extra years. Otherwise,
what am I going to eat afterwards?”


★


Monday 30 May 2016

5

FINANCIAL TIMES

INTERNATIONAL
GLOBAL INSIGHT

In step France
and Germany
recall Verdun

SÃO PAULO

Joe
Leahy

Petrobras inquiry
highlights thirst for
deep reform in Brazil

François Hollande and Angela
Merkel sought to assert their faith in
the EU and the Franco-German
friendship yesterday, as they marked
the centenary of the battle of Verdun.
The president and the chancellor
started a day of commemorations by

laying a wreath at the German
military cemetery at Consenvoye,
just north of the French town, and
paying their respects to the 300,000
soldiers who died in 1916 in the
longest battle of the first world war.
“What we have to do with the
chancellor, it’s not reconciliation, it’s
already done, it’s to say together what
we want to do at this particular time
for Europe,” Mr Hollande said. Ms
Merkel said Europe needed to draw
from its history: “Only those who
know the past can draw lessons from
it so we can shape a good future.”
There was “no doubt” Europe was
facing difficult tasks, but it had also
“done and succeeded in many
things”, Ms Merkel said, praising
postwar Franco-German
co-operation. “We have become
friends”. Anne-Sylvaine Chassany

I
Sean Gallup/Getty Images

Truckmakers set for record EU fine
Cartel penalty could hit €10.7bn after investigation into price-fixing and emission technology delays
CHRISTIAN OLIVER — BRUSSELS
PETER CAMPBELL — LONDON


The EU is set to issue the biggest cartel
fine in its history, punishing Europe’s
largest truckmakers over charges that
they fixed prices and delayed the introduction of new emission technologies.
Margrethe Vestager, EU competition
commissioner, issued the original
charge sheet against DAF, Daimler,
Iveco, Scania, MAN and Volvo/Renault
in 2014. Four of those have now set aside
provisions amounting to $2.6bn.
People close to the discussions on
penalties say they are expecting the fine
this year, possibly within weeks, unless
there is a reversal by the European Commission.
The expected fine easily outstrips the
EU’s previous record of €1.4bn for a television and computer monitor tubes
cartel in 2012, and dwarfs those
imposed over euro and yen interest rate
derivative cartels. Ms Vestager has compared the action against the truckmakers to her antitrust showdowns with
Google, the US search group, and
Gazprom, Russia’s gas export monopoly.
Her probe focuses on the behaviour of
the six companies between 1997 and
2011, according to documents seen by
the Financial Times. The charges
describe several ways in which the manufacturers allegedly colluded on price.
Most sensitively after the Volkswagen
scandal, the companies are also accused
of agreeing the “timing and price

increase levels for the introduction of
new emission technologies”.
Ms Vestager has stressed that Europe
has 600,000 hauliers and argues that
any price collusion among truckmakers
would have put up prices of everything
from food to furniture.

The companies said they were co-operating with the investigation, although
one added it might appeal against any
negative decision. In preparation for a
big financial hit, DAF has put aside
$945m; Iveco $500m, Daimler €600m
($672m) and Volvo SKr3.7bn ($444m).
As the whistleblower, MAN, which is
owned by Volkswagen Group, would
ordinarily escape a fine.
Only Scania, which is also owned by
VW, has not put aside any money.
“Scania remains unable to estimate the
impact the investigation will have,” the
company said. “It cannot be ruled out
that the commission will impose fines
on Scania,” it added.
Between them, the six have near total
control of the market. The commission’s
inspectors raided their offices in January 2011. Lawyers warned that the provisions made by the companies did not
mean the commission would not push
for a higher sum. Under EU rules, the
companies may face a fine of up to 10

per cent of global turnover. In the case of

the brands involved, that could amount
to a maximum of €10.7bn.
One person briefed on the case said
the fines being considered were
“extremely high” and that two truckmakers had discussed leniency with the
commission because the full potential
fine could cause serious financial problems. A fine is often only the initial
financial penalty for companies found
to be part of a cartel; some hauliers are
considering whether to pursue follow-up damages.
“We will be waiting with very keen
interest to see what the commission
says,” said Jack Semple, director of policy at the Road Haulage Association. “If
we see record damages then there will
be consequences for that.”
The commission declined to comment on the case, beyond saying it was a
“priority”.
EU parliamentarians and environmental campaigners have long had suspicions about truckmakers. For 20
years, lorries seemed strangely impervi-

25%
Proportion of
CO2 coming from
road transport that
is produced by
lorries

36%

Estimated increase
in CO2 emissions
from heavy vehicles
between 1990 and
2010

Truck CO2 emissions continue to rise
% of road transport emissions

60
2012
2030

50
40
30
20
10
0
Vans

Trucks & buses

Cars & motorbikes

Source: Transport & Environment

ous to market forces that were supposed
to make them more fuel efficient and
cut emissions. Some clues to the mystery emerged in 2014, when Brussels

levelled the formal cartel charges.
But the cartel investigation is only one
strand of a broader pattern of alleged
collusive behaviour by truckmakers
and governments that lobby for them.
Environmental campaigners allege
the truck industry has strongly resisted
attempts to improve fuel consumption
and slash emissions of carbon dioxide.
Emissions from lorries are a subject of
intense concern because they produce
about 25 per cent of the CO2 from road
transport, while representing fewer
than 5 per cent of vehicles on the roads.
Despite new, greener technologies,
the commission reported in 2014 that
heavy vehicles’ fuel efficiency had stagnated since the mid-1990s and estimated their CO2 emissions increased 36
per cent between 1990 and 2010.
The industry says its performance on
CO2 emissions should be rated over a
longer timeframe, noting big improvements since the mid-1960s. Lorry manufacturers also say they have sliced NOx
emissions since the introduction of the
so-called Euro 6 standards in 2014.
ACEA, the European Automobile
Manufacturers’ Association, said
Europe’s trucks represented only 5 per
cent of greenhouse gas emissions while
transporting 75 per cent of all landbased freight. “Since 1965, the fuel consumption of European trucks — and
with that CO2 emissions — has come
down by 60 per cent,” the ACEA said.

“At the same time, truckmakers have
delivered enormous advances in air
quality. Pollutant emissions have been
slashed to near-zero levels, down 98 per
cent since 1990.”

f you are a politician in Brasília these days, be careful
of friends or associates who sidle up to you asking
leading questions.
This is what Romero Jucá, Brazil’s former planning
minister, discovered after he met Sérgio Machado, the
head of a Petrobras subsidiary, for a private chat in March.
The conversation predated the impeachment of President
Dilma Rousseff this month, which was led by Mr Jucá and
his Brazilian Democratic Movement party, or PMDB.
In a transcript of the exchange released by the newspaper Folha de S.Paulo, the pair seemed to conclude that the
best way to gain some protection from a corruption
inquiry into state-owned Petrobras was to impeach Ms
Rousseff of the Workers’ party, or PT, and install Michel
Temer, her vice-president, also of the PMDB, in her place.
Mr Jucá later found out his interlocutor was wiretapping
him, and other politicians, reportedly as part of a plea bargain Mr Machado had made with federal investigators for
leniency in exchange for helping them gather evidence.
Indeed, as the Petrobras investigation has expanded, so
too has the fear factor in Brasília. Certain members of Brazil’s 600-member congress are accused of collaborating
with company officials and contractors to extract bribes.
But while the investigation has changed the rules of the
game for Brazilian politics, the players in congress remain
largely the same. This raises the question of whether the
country’s biggest corruption inquiry will be enough to

alter a political culture in which graft provides the grease
that allows the machine to run.
Certainly, the investigation is claiming more scalps than
any before in the country.
While acknowledging the
Will the country’s
existence of the conversation with Mr Machado, biggest corruption
Mr Jucá denied any
investigation be
wrongdoing and claimed
his comments were taken enough to alter the
out of context. But Mr
political culture?
Temer, who is president
in an interim capacity,
oversaw the stepping-down of Mr Jucá from the cabinet
lest his presence undermine the fragile legitimacy of an
administration that owes its power to the impeachment of
an elected president.
Most people in Brazil seem to agree that, in addition to
the graft investigations, political reforms are needed to try
to remove some of the incentives for corruption. As in
many jurisdictions, corruption in Brazil mainly revolves
around the need for campaign finance.
One of the first reforms has already been carried out by
the Supreme Court, which has banned corporate donations. But without accompanying changes, this will only
leave parties starved of funding and perhaps even more
vulnerable to corruption.
Another might be to introduce district representation.
Under Brazil’s proportional system, voters elect candidates and parties with little connection to any geographic

region. This means near-zero individual accountability.
Another reform might be to end Brazil’s system of coalitions, in which groups of parties form blocs during election
time to gain rights to free television advertising time allotted according to their overall representation in congress.
These alliances sustain congress’s plethora of small parties
that might otherwise have to merge with larger ones if they
did not receive this support. Many of these have no policy platform other than rent-seeking. Some border on the
absurd, such as the Brazilian Women’s party, whose only
member of congress is a man.
Some argue that political reforms will count for little
without a fundamental change in Brazilian culture to persuade voters not to keep re-electing tainted politicians.
But even without political reform, the Petrobras inquiry
is a sign of a growing insistence in Brazilian society for
more public probity on the part of its politicians. While
existing crooked players will take time to weed out, the
hope is the next generation will embrace the new rules of
the game. In the meantime, Brazilian politicians will have
as much to fear from their friends as from their enemies.


Migrant crisis. Homebuilding

Germans and newcomers jostle for space as housing shortage grows

STEFAN WAGSTYL — BERLIN

Bustani Radwan and Tim Gehringer
might seem to have little in common.
One is a 22-year-old Syrian refugee
seeking sanctuary from Aleppo’s bombing and Aegean perils. The other is a 25year-old German engineering student
from rural Schleswig-Holstein. But both

are involved in an increasingly tough
competition: the race for a flat in Hamburg, one of Germany’s most expensive
cities.
They meet for the first time at the
viewing of a 40-square-metre flat in
Iversstrasse, in a remote northern suburb. Mr Radwan is a beginner: he has
only looked at seven flats. He soon
learns how tough things are from Mr
Gehringer, who has seen nearly 50.
“There are always a lot of people,”

says the German. “I have been searching
for four months. . . . I have to make
time to study, read and look for flats.”
With the arrival of more than 1m asylum-seekers in Germany last year, the
challenge is about to get harder. Mr Radwan is among the first of the newcomers
to venture out of the government-financed reception homes and hostels
and look in the open market.
While some migrants will leave and
others may be turned away (such as
north Africans, who rarely win asylum),
more than 60 per cent are securing permission to stay in Germany. Many will
seek homes in big cities with larger
immigrant communities and better
job prospects than smaller towns, especially those in ex-communist eastern
Germany.
But big cities are also drawing young
Germans escaping the provinces for a
metropolitan life. Even as the country’s
ageing population of 80m has, as a

whole, declined, the top five cities have
grown 10 per cent since 2000, or 60,000
people annually, driving up rents.
“I would not call it a crisis,” says
Gunther Adler, state secretary in the

housing ministry. “But housing needs
are growing in specific big cities and in
university towns . . . because the lifestyle is becoming more attractive.”
Most refugees face disadvantages as
they usually speak little or any German
and know nothing of the complex rules
governing rented accommodation.
Local authorities have refrained from
building special immigrant blocks to
avoid ghettos. Refugees seeking social
housing compete with locals.
Few newly arrived migrants can fend
for themselves like Mr Radwan. They

rely instead on local officials and charities, such as Hamburg-based Wohnbrücke Koordinierungsstelle. Wohnbrücke worker Alina Thiem says the
charity assists those with good prospects of remaining in Germany.
She says that, alongside charities and
volunteers, the authorities should put
more effort into assisting refugees.
“Integration is not only a cultural but a
structural challenge. There needs to be
new jobs like district refugee co-ordinators — perhaps people who themselves
have a migrant background.”


Bustani Radwan, left, and Tim Gehringer

With refugees adding to housing
demand, builders are boosting construction: new home numbers have
risen from 159,000 in 2009 to 270,000
last year. But the government wants
350,000 annually.
A record 603,000 homes were built in
1995 in a post-reunification boom, but
the industry is losing skilled craftspeople through retirement and a shortage
of young German recruits. The DBI, the
construction industry association, says
refugees help fill the gap, but only when
they learn German and qualify.
This year the government has doubled funds to the 16 regions, boosting
housing investment to €1bn, with a further rise to €1.5bn planned for 2017.
In Hamburg the public homebuilding
programme is being expanded from
6,000 flats a year to 10,000, with a oneoff plan for 4,800 refugee homes. Dorothee Stapelfeldt, the city’s housing
chief, says: “We expect more competition for social housing, so we have this
special programme to head off possible
tensions.”
One issue is existing residents’ resistance to new projects, especially social

housing in wealthier districts. Ms
Stapelfeldt says: “People show goodwill
in general, but then they say ‘not in my
backyard’.”
Now Angela Merkel is considering
going further. Under German law, most

asylum seekers are distributed across
the country and risk losing welfare benefits if they move. The plan is to extend
this rule to include those granted asylum, limiting their movements for up to
three years. It has been called authoritarian, but ministers say it will ease integration pressures, not least in housing.
Officials point to a precedent in the
1990s, when Germany received a wave
of migrants from the ex-Soviet bloc.
Studies show it worked, with most staying put, even in eastern Germany.
Whether it will succeed again is
unclear. Today’s migrants often have a
better grasp of their options. Mr Radwan is among them. “I want to stay in
Hamburg,” he says. “I want to study
pharmacy here.” But first he must find a
place to live. So must Mr Gehringer. Neither got the flat in Iversstrasse.
This is the first in an FT series on how
migrants are settling in Germany


★

6

FINANCIAL TIMES

Monday 30 May 2016

INTERNATIONAL
China

Monetary reform


Soap maker apologises after racism outcry

Attack on
Rajan stokes
talk of change
at India’s
central bank

Leishang sorry for ‘harm
caused’ as detergent
advert provokes fury
LUCY HORNBY — BEIJING
AND AGENCIES

A Chinese detergent maker has apologised and withdrawn an advertisement
that went viral worldwide for all the
wrong reasons.
Shanghai Leishang Cosmetics’ advert
for Qiaobi detergent featured a young
Chinese woman popping a paint-splattered African suitor into a washing
machine. The machine whirrs away
and, to her delight, he emerges as a Chinese man in a sparkling white T-shirt.
Picked up by social media and the
international press, the commercial

was denounced for its casual racism.
In a statement over the weekend,
Leishang said it took responsibility for
the advert’s content, saying it strongly

shunned and condemned racial discrimination, although it blamed foreign
media for amplifying the furore over the
commercial, which first appeared on
Chinese social media in March.
“We express our apology for the harm
caused to the African people because of
the spread of the ad and the over-amplification by the media,” it said. “We sincerely hope the public and the media
will not over-read it.”
A company employee known only as
Mr Wang had previously told The Global
Times, a Chinese newspaper, that the
critics were “too sensitive”, and the issue
of racial discrimination never came up
during the production of the video.

The unwelcome publicity undermines China’s portrayal of itself as a
benevolent partner for Africa, the Caribbean and the Middle East, free of the
exploitative and racist legacy of the
European colonial powers.
President Xi Jinping has relaunched a
diplomatic initiative that recalls China’s
role as a beacon for unaligned countries
during the Cold War. Resurrecting this
reading of China as an advocate for
poorer countries and an alternative to
the US comes after a decade of unprecedented outbound investment in
resources and infrastructure.
In the 1950s and 1960s, Chinese diplomats led by former premier Zhou Enlai
prided themselves on their ties to postcolonial states in Africa and the Middle
East. In the same era, Jim Crow laws in

the US barred dark-skinned diplomats

The African
suitor emerges
from a washing
machine as a
Chinese man in
a sparkling
white T-shirt

‘We express
our apology
for the harm
caused to the
African
people
because of
the spread of
the ad and
the overamplification
by the media’

from hotels and golf courses, tarnishing
Washington’s efforts to woo newly independent states away from allying with
the Soviet Union.
Leishang’s advert was also criticised
on Chinese social media after it came to
the world’s attention. It was aired in
China for several months without comment, before being picked up by expatriates living in China.
Its music and sequences closely

resemble an Italian detergent commercial broadcast about nine years ago, but
which has a different twist. In the Italian
version, a put-upon women doing the
laundry late at night stuffs her gawky
Italian boyfriend into the washing
machine and is delighted when a muscular black man emerges. “Coloured is
Better” reads the tagline for Coloreria
detergent.

Paris accord. Election threat

Trump throws Obama climate legacy into doubt
Slow sign-up leaves emissions
deal vulnerable to veto by
Republican presidency

appeals court dealt the president a blow
by ruling the administration could no
longer enforce compliance deadlines for
the power plant initiative.
The appeals court will hear oral arguments over the Clean Power Plan on
September 27. But the case’s significance
is likely to push it to the Supreme Court,
which means a final ruling on the plan
will not come until the next president is
in office. He or she could also end up filling the top court’s current vacant seat.
If Mr Trump were in charge he could
intervene by asking the court for a “voluntary remand”, sending it back to regulators who he could tell to render it
toothless, said a veteran Washington
environmental lawyer.

More radically, the president could
get it thrown out by telling judges the
government had done a 180-degree turn
and now agreed with its opponents.
“That rarely happens even with a
change of administration, but it’s not
unprecedented,” said the lawyer.

BARNEY JOPSON — WASHINGTON
PILITA CLARK — LONDON

Donald Trump is sowing doubt over the
Paris climate change pact as his hostility
towards the deal and the growing swagger of his campaign focus attention on
how he could undermine it as president.
The Republican candidate last week
vowed to “cancel” the painstakingly
negotiated agreement, a threat experts
said was unrealistic. But his comments
put a spotlight on its slow ratification
and weak spots in President Barack
Obama’s climate legacy.
While Mr Trump could not singlehandedly scrap the agreement — which
Washington and Beijing rallied more
than 190 countries to join — he could
withdraw the US, the second-largest
greenhouse gas emitter after China, or
block the action needed to cut emissions
to the levels promised by Mr Obama.
The Paris accord, hailed as a turning

point in more than 20 years of efforts to
combat climate change, requires countries to set out plans to help keep global
warming “well below 2C” from preindustrial times. The Obama administration has vowed to cut US greenhouse
gas emissions by 26-28 per cent from
2005 levels by 2025.
But if Mr Trump used the presidency
to cast doubt on the need for climate
action, he could weaken the resolve of
other leaders sceptical about the deal.
Attacks on the Paris agreement could
occur at three different levels under a
Trump presidency.

Withdrawal from the pact
No single country can “cancel” the deal
because it would require each of the
nearly 200 nations that negotiated it to
agree to its abandonment. Once the
agreement is in force it is also impossible for a country to withdraw overnight.
“Even if Donald Trump becomes
president he cannot pull the US out of
the Paris accord quickly because there is
a four-year withdrawal period written
into the agreement,” said Michael
Jacobs, a UN climate negotiations expert
at the Institute for Public Policy
Research, a UK think-tank.

Executive (in)action


40%

“That’s not a coincidence,” he added,
noting the timing matched the length of
a US presidential term.
However, the agreement is not yet in
force and it is not likely to be by the time
a new president is sworn in next January
— a possibility that could leave Mr
Trump with an easier get-out if he wins.
The Paris accord cannot take effect
until it is formally ratified or joined by
55 countries accounting for 55 per cent
of global emissions. So far, only 17 countries representing 0.04 per cent of emissions have ratified it. China and the US
have said they plan to join this year but
they account for only about 40 per cent
of emissions. Even under the most opti-

Percentage of
greenhouse gases
in the US produced
by power stations

55
Number of
countries needed
for the Paris accord
to take effect

mistic scenarios, the agreement may

not start until 2018.

The US courts
The fate of US climate policies is not
solely in the hands of the president. The
centrepiece of Mr Obama’s Paris pledges
— an initiative to cut carbon emissions
from the power sector — is hanging in
the balance as its legality is weighed by
the courts.
Mr Obama was unable to curb emissions via legislation in Congress and has
resorted to using regulations, which are
vulnerable to lawsuits from states and
energy companies that dislike them.
In February a District of Columbia

Donald Trump
speaks at a rally
in San Diego last
week. The
Republican
candidate has
vowed to cancel
the Paris climate
change deal
Chris Carlson/ AP

Even if the courts upheld Mr Obama’s
plan to cut emissions from power
plants, a President Trump could choose

to disrupt it. With a co-operative Congress he could cut funding for the Environmental Protection Agency, the regulator in charge, or promote legislation to
slow the initiative’s implementation.
Or “he could signal to the states that
their plans for meeting the Clean Power
Plan goals would not be reviewed rigorously”, said Rhea Suh, president of the
Natural Resources Defense Council, an
environmental group.
The power plant initiative is vital
because it tackles the US’s biggest single
source of greenhouse gases, accounting
for 40 per cent of the total. But Mr
Trump could also delay moves to stop
methane leaks, curb vehicle emissions
and promote energy efficiency.
“Some of those things would be challenged in court, but . . . even if they
were in some legal limbo he would effectively really halt our progress,” said Ms
Suh. “The actual slowing down of things
may in fact be a reversal in itself.”
Christiana Figueres, the UN’s top climate official, said the next president
would need to examine the US’s economic interests and argued that shifting
to a low-carbon system made sense for
the economy and society.

Ageing populations

Bleak future for Japan as close to half its households include a relative over 65
LEO LEWIS — TOKYO

Some 45 per cent of Japan’s households
now include one person aged 65 years

or more, government figures show,
underlining how swiftly the country is
moving towards a costly demographic
inflection point.
The quickening advance towards a
crossover point that will change the
country’s economic landscape and the
companies serving it, comes with a
shrinking dependency ratio. By 2060,
there will be 1.3 Japanese of working age
(15-64) for every person over 65,
according to a government white paper
on ageing.
Japan is at the forefront of a rich world
trend in which fewer workers support
more seniors. Germany, for example,
faces a dependency ratio of 1.5-1.6 by
2060, according to its Federal Statistical
Office, as fertility rates decline and people live longer. But the near absence of
immigration makes Japan’s case more
stark.
The combined pressures of fewer
workers and the ballooning demands of

elderly care pose a further threat to the
growth stimulus policies championed
by Shinzo Abe, the prime minister, who
is aiming to put 1.17m more people into
the workforce by 2020.
Demographics are already frustrating

this ambition. About 100,000 people a
year quit their jobs to care for an elderly
or sick relative, according to govern-

Ageing Japan

1954

10

5

0

Most are homes with one elderly couple, but the fastest-growing group is
households with one elderly inhabitant
and an unmarried child. This group has
doubled as a proportion of the total
since 1980.
Charles Horioka, a professor at the
Asian Growth Research Institute, said:
“We are seeing a very dramatic change

Proportion of total population (%)

Male Age Female
85+
80-84
75-79
70-74

65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

1984

ment data. The figure is set to expand
dramatically as the 1946-47 baby boomers cohort moves into the ranks of the
elderly.
But for millions, the would-be recipients of their care are already close at
hand. Of Japan’s 50.1m households, 44.7
per cent include at least one person over
the age of 65.

0

Male Age Female
85+
80-84

75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

2014

1954

5

10

FT graphic: Alan Smith Source: US Census Bureau

10

5


0

0

5

Male Age Female
85+
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

2024

1954


10

10

5

0

0

5

10

in the composition of the Japanese family and its living arrangements. The
prime minister may want to reduce the
number forced to quit their jobs to care
for the elderly in this very tight labour
market, but that is much easier said
than done. It’s a serious problem.”
The white paper also tracks a rapid
rise in the number of people requiring
long-term care, with a Cabinet Office
survey suggesting that fewer than 45 per
cent of people approaching retirement
are confident of funding care costs from
their pension and other income. The
same survey, however, found that 76 per
cent of over-65s were either “not worried” or “not much worried” about their

current economic situation.
The government survey also charts
what it describes as a “remarkable”
increase in the number of elderly people
living alone, whose proportion of the
overall population of over-65s doubled
between 1980 and 2010.
The household composition data also
notes a continuing surge in the number
of Japanese working beyond traditional
retirement age.

AMY KAZMIN — NEW DELHI

To many international investors, the
Reserve Bank of India governor
Raghuram Rajan is a near-hero: the
market-savvy central banker who
tamed India’s inflation, restored its
macroeconomic stability and is driving
a banking system clean-up.
But admiration is not universal. Many
Indian businessmen are frustrated that
interest rates have not fallen faster.
Some tycoons are unhappy with growing pressure to repay their overleveraged companies’ debts to ailing state
banks, despite tough economic times.
Now, with Mr Rajan’s first term ending in September, an influential politician from prime minister Narendra
Modi’s Bharatiya Janata party has
launched a scathing attack, accusing the
RBI governor of a “wilful and apparently

deliberate attempt . . . to wreck the
Indian economy”.
In a letter last week to Mr Modi, Subramanian Swamy, a 77-year-old Harvard-educated economist, complains
about high interest rates and even
claims Mr Rajan is “mentally not fully
Indian”, since he has a green card that
allows him to live and work in the US.
The criticism, by a prominent lawmaker to whom the BJP gave a parliamentary seat only last month, has worried investors already anxious that Mr
Rajan might be replaced by someone
more pliant — and less voluble.
So far neither Mr Modi nor his administration has given any hint of their leanings, with officials saying the RBI leadership will be announced in August.
“It does give palpitations to investors,” Rajeev Malik, senior economist at
CLSA, said. “Raghu stands out as the
single most potent policymaker, who
has enthused foreign investors in terms
of macro-stability and encouraged their
confidence in Indian policymaking.”

The governor was accused
of a ‘wilful and apparently
deliberate attempt . . . to
wreck the economy’
He added that “Raghu would leave
very big shoes to fill”.
A former chief economist of the International Monetary Fund and University
of Chicago business school professor, Mr
Rajan took the reins of the RBI in September 2013, when the rupee was plummeting and inflation was at double-digit
levels. Since then he has waged a determined battle against India’s spiralling
prices, persuading New Delhi to adopt a
formal inflation-targeting framework

for its once ad hoc monetary policy.
Inflation, nearly 11 per cent in 2013, fell
to 5.8 per cent last year — heavily helped
by plunging oil prices.
“He has been able to break the back of
inflation, for which he should be given
full credit,” says Surjit Bhalla of Observatory Group, a New York-based economics consultancy. “It was a superb
appointment and it remains a superb
appointment. I don’t think they can do
much better.”
But the straight-talking Mr Rajan —
who presciently warned of trouble
before the 2008 global finance crisis —
has ruffled feathers in New Delhi. Last
year he called for tolerance of diverse
opinions, arguing that India’s prosperity
depended on its intellectual freedom.
His words were interpreted as thinly
veiled criticism of BJP hardliners, who
have been accused of fostering intolerance of minorities and demanding universal adherence to Hindu orthodoxy.
Mr Rajan raised hackles in New Delhi
again more recently while in Washington for the IMF and World Bank spring
meetings. Asked by a reporter about
India’s reputation as a “bright spot” in
the gloomy global economy, he cited the
proverb, “in the land of the blind, the
one-eyed man is king”.
His words upset India’s image-sensitive administration. But Mr Rajan
refused to apologise — except to the
blind — and clarified that he was not

“denigrating” India but merely emphasising that the country still had much to
do to unleash its full potential, and
should not “get carried away by our current superiority in growth”.
In demanding Mr Rajan’s removal, Mr
Swamy accused the governor of “publicly disparaging . . . the BJP government” and displaying “reckless disregard” for India’s national security, by
sending “confidential and sensitive
financial information” on his University
of Chicago email address.
Despite the resentment of the governor among some in the BJP, Mr Modi
and Mr Rajan appear to have common
interests. Both want to end crony capitalism and are committed to broadening
access to financial services.


★

Monday 30 May 2016

7

FINANCIAL TIMES

FT BIG READ. INDIA BUSINESS
Billionaire Anil Ambani is betting that defence will save Reliance, his indebted company. He has an ally
in Narendra Modi, the prime minister, who plans to pour billions into modernising the military.
By Henny Sender

J

ust over a year ago, Indian

entrepreneur Nikhil Gandhi
was forced to sell a controlling
stake in his heavily indebted
Pipavav shipyard in the state
of Gujarat. Some of the biggest conglomerates in India lined up to buy the shares
in Pipavav, which builds warships for
the Indian navy. Among the companies
jostling for control were Anand Mahindra’s Mahindra & Mahindra, the Munjal
family and Anil Ambani’s Reliance
group.
Both the Munjals and Mahindra
expected to win the coveted stake.
Indeed, Mr Gandhi had even signed a
preliminary agreement with the
Munjals. But to the amazement of the
other bidders, the prize went to Mr
Ambani, whose Reliance group is one of
the 10 most indebted companies in
India, according to Credit Suisse.
Mr Ambani had never even seen the
shipyard until after he had acquired the
stake, according to both Mr Ambani and
Mr Gandhi. But Mr Gandhi expressed
confidence that his new partner, with
his political and business connections,
would help the shipyard thrive as India
seeks to expand its naval capabilities.
“India must develop blue water
capacity,” says Mr Gandhi. “The pie is
very big now,” he adds, referring to the

expectation that Narendra Modi, the
prime minister, will raise military budgets significantly in coming years.
Mr Ambani’s acquisition of the stake,
worth about $300m, is thought to have
been the largest ever sale in the Indian
defence industry.
Becoming the biggest shareholder of
Pipavav, now renamed Reliance
Defence and Engineering, was crucial to
Mr Ambani’s ambition to transform his
company from an indebted owner of
everything from cement factories to telecoms into one of the leading private
defence groups in India.
Mr Ambani is betting that defence
will save Reliance. Since winning the
Pipavav stake, Mr Ambani has travelled
the globe, forming relations and securing contracts with defence suppliers in
Russia, France and Israel to rapidly
expand his defence holdings. He has
applied for licences to produce equipment including submarines, satellites
and helicopters.
At the end of last year, Mr Ambani
signed an agreement with a Russian

Defensive
mode

‘A big positive’
Whatever his critics say, there is agreement that Mr Ambani has a competitive
advantage when it comes to the defence

industry: a close relationship to Mr
Modi. He was also one of the first to heed
the prime minister’s call to support
“Make in India”, a crucial part of his economic policy.
Indeed, Mr Gandhi chose to sell his
shipyard to Mr Ambani in part because
the sale had Mr Modi’s blessing, he says.
Yet precisely because he is aware of
his reputation, Mr Ambani is determined to succeed and prove the naysayers wrong, his supporters claim. A marathon runner, Mr Ambani is capable of
great focus when he is engaged.

Make in India Building up the country’s
defence industry is seen as a strategic
priority in New Delhi
Reliance pivot Ambani is focusing on
the sector as it is seen as having clear
regulation and a good return on equity

Companies including Adani, Bharat
Forge, Mahindra and various arms of
Tata Group are heeding the call and
forming relations with defence groups
from Britain, France and Israel to Russia
and the US.
“Make in India has become the second
career option for retired defence personnel,” Outlook, a weekly news magazine, said recently, referring to the corporate competition to recruit such
figures. More than a dozen three-star
military commanders have joined the
Pipavav shipyard, the magazine said.
Perhaps the single biggest spender in

the coming years will be the Indian
navy, the seventh-largest by number of
ships, as it gears up to meet the growing
local Chinese presence. In July, the latest
Indian naval indigenisation plan was
announced as part of the government’s
effort to cut its dependence on foreign
suppliers. That scheme calls for involving private sector Indian companies to
help reduce imports.

Regional spending spree
All this explains the importance of
Pipavav, which is one of two major func-

Asian defence spending
Real change 2005 to 2015 (%)
China
Indonesia
Vietnam
S Korea

‘Every defence maker is
looking to invest in India.
This will facilitate creation
of jobs and save foreign
exchange for the country’
company to manufacture, refit and
upgrade several warships for the navy at
Pipavav, another one to refit submarines and a third to make helicopters for
the Indian military.

But there are many who doubt that
the 56-year-old Mr Ambani, known
more as a dealmaker than a builder of
businesses, can pull it off.
“Defence is the ultimate big boy’s
game,” says one banker. “You need deep
pockets and technical expertise to meet
very exacting specifications.”
Some bankers in Mumbai say that Mr
Ambani was at his best many years ago
when he served as chief financial officer
of Reliance Industries, the heart of the
conglomerate his father built, before he
and his powerful elder brother Mukesh
broke off relations with each other. That
break was at least partly because doing
deals and then swiftly moving on to the
next thing suited the younger brother’s
personality.
To do the heavy lifting of executing on
deals was far less interesting. Today, Mr
Ambani is worth $3.3bn, according to
Forbes, but most of that is inherited
rather than money he has earned, sceptics say.
Others say he is more of a celebrity
than an entrepreneur or a businessman.
Part of that image stems from the fact
that Mr Ambani is married to a former
movie star. While he is selling some of
his media and entertainment assets, he

still loves the glamour of Bollywood.

Global reach Since the shipyard deal
Anil Ambani has formed relations with
suppliers in Russia, France and Israel

India
Philippines
Japan
0

50

100

150

Source: SIPRI

Anil Ambani walks behind Narendra
Modi, prime minister, at the launch
of ‘a Digital India’ project in New
Delhi last year — Saurabh Das/AP Photo

$300m

CostofReliancegroup’sacquisitionofalarge
stakeintheheavilyindebtedPipavavshipyard
inGujaratstate


49%

CeilingintroducedbyNarendraModionforeign
ownershipofdefencejointventures,upfrom26
percent

$520bn

ForecastannualdefencespendinginAsiaby
2020,withChinaaccountingfor40percentof
thetotal

Competitors
Tata and its rivals fire
starting gun on arms race
“This is one area where we would not
like to be number one,” Narendra
Modi, India’s prime minister, told an
arms industry conference last year, an
unusual remark from a leader who has
sought national advancement on
various global rankings.
The area in question was arms
imports, on which India has been
the world’s biggest spender for the
past decade, according to the
Stockholm International Peace
Research Institute.
For Mr Modi, this is a missed
opportunity to develop the domestic


Sitting with a cup of tea in his office,
where the walls are lined with pictures
of himself with Benjamin Netanyahu,
the Israeli prime minister, Mr Modi and
other dignitaries, Mr Ambani reels off
the advantages of his strategic shift
away from infrastructure to defence.
“For cost, quality and price the government has to outsource more to the
private sector,” he says. “You are dealing
with one customer, the central government. There is no regulatory uncertainty. You are creating jobs. You are
contributing to Modi’s Make in India
and Skill India programmes. And the
return on equity is superior.”
Even better for a cash-strapped company like Reliance, defence does not
require massive spending upfront. That
is because most of the heavy capital
commitment comes from the government, which provides financial
advances to contractors.
As he builds his defence operations,
Mr Ambani is responding to incentives
that come directly from the prime minister’s office in New Delhi. At the centre
of Mr Modi’s Make in India campaign is
a desire to reduce India’s dependence on
imported military equipment.
“Defence is one of the few areas where
Make in India can happen,” says Sanjay
Bhandarkar, head of Rothschild in

India. “If they can get it right, it would be

a big positive for the country.”
Today, India spends more on
imported arms than any other country.
“Growth in the Indian military budget is
expected to outpace that of all other
major defence spenders over the next
five years,” says Craig Caffrey, principal
analyst at IHS Jane’s.
Ninety per cent of it $40bn-$50bn
military budget, the fourth-largest in
the world, goes to foreign manufacturers, mostly Russia. The only things India
spends more on are energy and capital
equipment.
“Previously, India imported almost
everything,” Mr Ambani adds. “We
weren’t even making our own bulletproof vests.”

manufacturing sector and he has
promised that future expenditure will
show “a clear preference for equipment
manufactured in India”.
Soon after Mr Modi took office, Tata,
India’s biggest conglomerate, identified
arms as one of its top-five growth targets
for the next decade.
Other major groups to see potential
opportunity are Mahindra & Mahindra, in
armoured vehicles and helicopters;
Larsen & Toubro, which is strong in
submarine construction; and Bharat

Forge, which in February outlined hopes
of using Indian military contracts to
become one of the world’s top-three
artillery gun producers.
Big-ticket deals have been slow in
coming but New Delhi says it is working
to tackle the slowness, opacity and

corruption associated with
government purchases.
Under recent proposals, the
government will nominate a few
private companies that could lead
major defence projects.
That plan has prompted criticism
that it will unfairly benefit major
groups, pushing smaller companies
into the margins.
This focus could also spell leaner
times for state-owned companies
such as Hindustan Aeronautics,
previously the preferred domestic
suppliers for Indian military
procurement, which were dismissed
as “two or three decades behind”
western groups in a leaked 2010 cable
by the then US ambassador to India.
Simon Mundy

Adding value

Today, Mr Modi is encouraging foreign
manufacturers to do more with Indian
partners. Soon after becoming prime
minister in 2014, he lifted the 26 per
cent ceiling on the size of foreigners’
stakes in defence joint ventures to 49
per cent.
At the same time, the defence ministry requires that for every order worth a
minimum of $62m, any foreign contractor has to produce 30 per cent of the
value locally to reduce imports and

build a more solid industrial base. “It
has been one of the prime minister’s
best moves,” says Deepak Parekh,
founder of HDFC, a financial services
group. “Today every defence maker in
the world is looking to invest in India. At
the same time, this will facilitate creation of jobs and save foreign exchange
for the country.”
Moreover, in the past, any crumbs
that did not go to overseas groups went
to India’s inefficient public sector
groups. But since May last year, Mr Modi
has encouraged private sector companies to participate, making the sector
more attractive to foreign suppliers
than if they had to work only with government-owned entities.
“Even before he became prime minister, Mr Modi reached out to all the
industrialists and urged them to look at
defence,” says a close associate of Mr
Ambani’s. “He said he wanted more to

be made in India and that the public sector can’t do it.”
At the end of March, the government
introduced defence procurement rules
that give priority to “indigenously
designed, developed and manufactured” products. “Self-reliance is a
major cornerstone on which the military capability of any nation must rest,”
the government said.

‘Defence is the ultimate big
boy’s game. You need deep
pockets and technical
expertise to meet very
exacting specifications’

tioning private sector shipyards and the
largest dry dock for warships in the
country.
There are several public sector shipyards but the backlog of orders is so long
that their output is constrained.
Even while he has been building the
defence business, Mr Ambani has been
raising as much as $8.5bn as he sells his
infrastructure assets to halve his debt,
according to market analysts, in one of
the more dramatic deleveraging of
India’s indebted conglomerates.
He has exited the cement business by
selling to Birla Corporation, another
Indian conglomerate. The telecoms
towers went to a North American company, while a big stake in Mumbai’s electricity business went to Public Sector

Pension Investment Board, a large
Canadian pension plan. Still on the
block are toll roads and power plants.
He plans to be debt-free by early next
year.
The effort to use defence as the catalyst for growth in India comes as it is
reeling from yet another procurement
scandal.
The latest one concerns an order from
AgustaWestland for helicopters to
replace the ageing fleet that transports
the prime minister and other government leaders.
“Most new acquisitions become scandals,” says Shekhar Gupta, a political
columnist.
“Many are then terminated, leaving
our forces with a fraction of the needed
inventory, and short of spares and
ammunition. Nobody is caught and
punished,” he adds.
Other Asian nations are also stepping
up their defence spending. The region is
expected to spend $520bn on defence
by 2020, according to IHS Jane’s, with
China accounting for 40 per cent of the
total.
Whether India’s focus on defence can
help transform Mr Ambani’s business
depends in large part on his ability to
run the businesses he has been assembling over the past year.
“He needs to demonstrate skill at

manufacturing and fiscal prudence,”
says the head of a foreign bank in Mumbai. “It is a big ask.”


★ †

8

FINANCIAL TIMES

Monday 30 May 2016

Letters

Email: or
Fax: +44 (0) 20 7979 7790
Include daytime telephone number and full address
Corrections:

South American trade is built on strong strategic alliances

MONDAY 30 MAY 2016

The puzzle that baffles
the world’s economies
Slowing output per hour is worrying but little understood
There can be few problems that are so
important and yet command so little
consensus about their source and solution as the general slide in productivity
growth across the world’s economies.

The Conference Board, a research
organisation, said last week that labour
productivity as measured by output
per hour was likely to fall in the US for
the first time in more than three decades. America is not alone; across the
developed world and, more recently,
the emerging markets, productivity
has been slowing for a decade or more.
The implications are stark. A weak
expansion in productivity will only put
more downward pressure on real wage
growth, which has already been anaemic in many advanced economies. To
the extent that stagnant real wages feed
economic populism, it will endanger
political stability and a respect for liberal values even in established democracies. It will also threaten the solvency
of pension schemes, which rely on
future tax revenues and profits.
Yet while most economists concur
that slowing productivity is one of the
most serious problems in their field
today, there is little agreement on the
cause and still less on the right
response. Only one thing seems obvious: the productivity slowdown has hit
such disparate economies that a single
global solution is unlikely to have much
effect. Policymakers must experiment
and be eclectic in their response.
Sometimes, there is a common international problem that has a clear solution, even if it has to be applied country-by-country. Inflation in many
countries was out of control in the late
1970s and early 1980s; it needed tighter

monetary policy to drive it out of the
system. Advanced economies exited
the early 1990s recession with large
structural deficits; judicious efforts to
reduce those deficits were appropriate.
But weak productivity is not one of

those. For example, the theory that
regulations are stifling innovation
seems odd given that the slowdown has
affected relatively liberalised economies like the US as well as more regulated economies in Europe and the
emerging markets. A wholesale tossing-out of protections for workers and
rules on health and safety seems
unlikely to jump-start global growth.
It is possible, though, to look at the
weakness of each economy, or type
thereof, and come up with particular
solutions. In mature economies with
weak investment, such as the US, UK or
Germany, very low long-term interest
rates justify increased public spending
on infrastructure both to boost
demand directly and productive capacity. In some advanced economies, such
as Italy, where there is less scope to go
on a borrowing spree, obvious gains are
to be made in microeconomic improvements such as reforming the sclerotic
judiciary, an important part of Prime
Minister Matteo Renzi’s plans.
And in many emerging markets,
there are gains to be made from more

traditional deregulatory reform,
together with switching money from
wasteful subsidies on fuel or other
goods to education and training.
The productivity slowdown is far
from being a clear-cut problem with
obvious solutions. Indeed, some suggest the real picture is better than official data show, because they underrecord gross domestic product in service-based economies where output is
harder to measure.
Yet there are problems in individual
countries, or groups of them, that seem
clear enough to make suggestions
about changes in policy. The inability
of modern economies to generate more
from the same labour supply may not
be a fast-moving crisis but it is a problem that needs urgent and sustained
attention.

Taking the party out of
the mosque in Tunisia
Nahda has shown the way to compromise by scrapping Islamism
The decision by the largest party in
Tunisia’s parliament to scrap its Islamist label and prioritise political goals
over proselytising, is a reassuring
reminder of the country’s unique success in preserving democratic gains
made in the wake of the Arab uprisings.
Endorsed last week at a Nahda party
congress, the rebranding is an isolated
occurrence unlikely to have immediate
influence on Islamist movements
beyond Tunisia’s borders. The evolution of the country’s politics nonetheless provides a welcome counterpoint

to the tyranny and extremism that has
swept the Arab world since 2011.
The changes to the Nahda party
point towards a way of reconciling
ardent religious adherence with democratic norms within a pluralistic environment. Their decision to rebrand as
Muslim Democrats — informed by
Islamic values without giving these
ascendancy over all else — echoes the
pragmatic origins of Turkey’s Justice
and Development party (AKP) before
its lurch to authoritarianism.
In the early part of the past decade,
the AKP greatly broadened its appeal
beyond what Turkish Islamist parties
had previously enjoyed by accepting
the secular nature of the state and
renouncing ambitions to impose
Islamic law.
The Nahda party has ditched the
Islamist label in part to distance itself
from jihadist groups who wear the
same badge. Among other substantive
changes, the party has prohibited its
leaders from serving religious organisations at the same time, and eased
restrictions to its membership criteria.
These measures may not entirely
reflect a separation of mosque and
party. They do however imply a recognition that Islamism is neither an effective ideology for governing nor for sustaining power. Like the AKP before it,
Nahda hopes that the softening of its


religious aspirations will enable it to
gather support beyond its traditionally
conservative constituency.
The enlightened self-interest
reflected in this approach stands in
marked contrast to that taken by
Egypt’s Muslim Brotherhood. Instead
of seeking to govern with legitimacy
after being elected into office in the
aftermath of the overthrow of Hosni
Mubarak, the Brotherhood sought to
colonise Egypt’s institutions to the
exclusion of everyone else. The movement has been officially banned since
its ouster in 2013 and the ferocious
backlash against it continues.
Unlike their Tunisian peers, whose
battles with secular rivals at one point
came close to derailing the nascent
democracy, the Brotherhood has had
little chance to absorb the lessons of
defeat. Driven underground, the movement stands divided between younger
members advocating more violent
resistance to the military-backed government and elders who have always
favoured a quieter approach towards
building support. Neither faction has
sought to soften their religious dogma.
That Nahda is choosing compromise
over confrontation is partly because in
Tunisia political freedom is protected
and strategies developed in the past to

survive dictatorship are no longer necessary. That is an example for the
repressive Arab states that have frequently driven Islamists towards more
violent manifestations of their ideology
by attempting to crush them.
Freed from the distraction of such
battles, it is to be hoped that all the parties in Tunisia’s governing coalition can
focus on the urgent task of tackling economic stagnation, unemployment and
other fuel for terrorists. In this the sole
surviving democracy to have emerged
from the uprisings of five years ago
deserves more support from the outside world than it has received to date.

trade flows should have a faster pace in
the initial years of any such
arrangement. That is exactly what
happened to Mercosur. Also, one
should consider that the two main
partners in Mercosur have been
affected by the worst macroeconomic
downturns in their recent history.
Weak growth in the short run tends to
slow down trade exchanges.
The authors mistake structural
patterns for dynamic vectors of the
agreements. Mexico and Chile, for
instance, had a higher export/gross
domestic product rate than Mercosur
countries even before the Pacific
Alliance had been set up.
It is not the best approach to try to

infer long term trends in foreign direct

investment from a rather small sample
(three years). In fact, what the data
really show is that Mercosur has a
larger FDI/GDP ratio than the Pacific
Alliance. On top of that, to talk about a
“rivalry” between Argentina and Brazil
in 2016 is laughable. In fact, the two
largest countries in South America
have built a strong strategic
partnership which is at the very core of
Mercosur.
Also, contrary to what the article
suggests, I am fully convinced of the
importance of Mercosur, and I am
ready to work with our partners with a
view to its strengthening.
José Serra
Minister of Foreign Affairs,
The Federative Republic of Brazil

Relentless pro-Remain
arguments are exhausting

Helicopter money could
help in migrant crisis

How to tackle the
distortion of liabilities


Sir, I find myself exhausted by the
relentless one-sidedness of the FT on
the EU referendum. This has
culminated with your editorial, “Vote
Leave is damaging Britain’s political
culture” (May 26).
Do you live in a completely parallel
universe? I have many friends on both
sides of this debate. The damage to the
political culture of this country is
coming from the barrage of bullying
half-truths from the prime minister
and his supporters. These have been
clearly corrected elsewhere — but it is
this that has provoked furious
reactions from those who feel any truth
has been jettisoned to defend a highly
questionable institution and caused the
damage to Britain’s political culture.
You, ladies and gentlemen, are
complicit in it.
Campbell Gordon
Ramsbury, Wilts, UK

Sir, In his response to John Kay’s piece,
Eric Lonergan (Letters, May 20) asked
why the use of helicopter money has
not started. My take is that this type of
money is already used in many

European countries. Implicitly,
helicopter money, by definition, is
assumed to apply to the indigenous
population.
Though, for the expected positive
outcome it should not matter if the
money instead — as in the present
cases — is spent on newcomers, the
migrants. Today we are witnesses to
how money printed, borrowed from
abroad or taken from money reserved
for use abroad (foreign aid) is spent to
feed, lodge and provide migrants with a
decent standard of living.
This comes very close to the original
meaning of helicopter money and has
indeed been shown to boost gross
domestic product, increase inflation
and lower unemployment in the
indigenous population. Sweden, with
its high per-capita arrival of migrants
in the European context, is a good
example.
Hence, when the humanitarian
aspects are put at the forefront and the
costs of the monetary policy
experiment become an issue for a
distant future, the European Central
Bank should consider the use of
helicopter money as part of a solution

to the deadlock among member states
regarding the migration issue.
Professor Lars Oxelheim
Chairman, Swedish Network for European
Studies in Economics and Business,
Lund University,
Lund, Sweden

Sir, David Fogarty gives a good analysis
of the causes of pensions deficits
(Letters, May 26), the principle of
which is the effect of quantitative
easing. His solutions would work but
would have to be introduced scheme
by scheme.
Given that the distortion of interest
rates by QE is increasing pension
scheme liabilities, Denmark produced
a solution. It now allows pension
schemes to discount liabilities at 4 per
cent per annum regardless of the yield
on the assets that match the pension
liabilities. The argument is that the
liabilities are very long-term and the
long-term yield on a portfolio of
pension scheme assets will be no less
than 4 per cent. Instantly pension
deficits are reduced or removed. This
would not only help BHS and Tata
Steel’s liabilities but also many other

pension schemes.
A likely consequence is that finance
directors saving cash to pay into the
pension fund would have cash to
invest. QE might even then help
investment and a better outlook for
growth in the economy.
Of course, the actuarial profession, of
which I am a member but not a
pensions actuary, would have to sit on
their hands till interest rates rose. They
might even come round to supporting
Ros Altmann’s wish for greater
investment in shares in pension funds.
Ian Reynolds
Billericay, Essex, UK

Sir, As a long-time reader and admirer
of your newspaper, I was surprised and
disappointed to read “Trade pacts:
Latin America’s new faultline” (EM
Squared, FT.com May 24).
Besides being based on the highly
questionable argument of a “new split”
in Latin America, supposedly brought
about by the opposition between
Mercosur and the Pacific Alliance
integration mechanisms, the article
disregards objective differences and
overlooks relevant circumstances and

data in comparing the two blocks.
Mercosur has welcomed the
establishment of the Pacific Alliance,
has trade agreements with its three
South American members (Chile,
Colombia and Peru), which will lead to

Irony is lost on some of
the Leave campaigners
Sir, If, as reported in the FT, “Cameron
urges the young to register for poll”,
(May 26), the Right Honourable John
Redwood MP thinks the Institute for
Fiscal Studies is part of a “cosy
establishment”, perhaps it is time for
him to come clean on what might
qualify or disqualify a person from
membership of this group of people
that he and the Brexit camp routinely
damn for their pro-EU stance.
Presumably the indicators would not
include being a Privy counsellor, a
distinguished fellow of All Souls
College, Oxford, a Conservative MP for
three decades, regular guest on BBC
Radio 4 discussion panels and
contributor of a column on investment
in the FT, or else he himself might be
prone to such woefully misguided
views? As Philip Stephens correctly

notes in “The myth of Brussels (mis)
rule” (Comment, May 27), the Leavers
have no grasp of irony.
Tom Brown
Director, New Europeans
London SW5, UK

Morally unsound
reasoning on referendum
Sir, Given the amount of research being
published daily that highlights the
startling consequences for us all if we
vote to leave the EU (May 29), one
wonders why we were ever offered a
referendum at all.

Gorbachev, a
Russian prophet
without honour
Book review
By John Lloyd

The New Russia
By Mikhail Gorbachev
(Polity Press)

a free trade zone by 2019, and is
negotiating with Mexico the widening
of tariff reduction agreements. The two
mechanisms hold regular meetings to

advance their co-operation. They share
the goal of enhancing their role in the
global trade markets and consider that
ever growing co-ordination between
them, at many levels, can be achieved
and should be pursued. There is no
divide, only convergence based on
shared goals.
While comparing the performance of
the two integration processes
(Mercosur, established 25 years ago,
and the Pacific Alliance, established in
2011), the article overlooks the
different stages of their evolution. It is
only natural that the intensification of

Obama at Hiroshima: would Trump
weaken the US pivot to Asia?
Surely a morally sound and fiscally
responsible government would not
waste public money even
contemplating such an enterprise if it
already knew these facts?
The only conclusion I can draw is
that either way the government is
morally unsound. What conclusion
should I draw about their facts?
Bob Klee
Braintree, Essex, UK


‘No fraternisation’ policies
at work are gaining ground
Sir, Reading Mr Romberg’s letter,
“Distinguishing between sex and
sexism at work” (May 25), compels me
to respond. How he believes that work
is a proper forum for sexual interaction
is beyond me. If advances are mutually
acceptable between parties it creates
an unprofessional atmosphere of
potential jealousy and a situation rife
for sexual politics. If the advances are
rejected, you have created an awkward
and uncomfortable situation for both
parties — again, unprofessional.
People may be people, but there is a
reason that “No Fraternisation”
policies are increasingly common in
the workplace. An employee/employer,
or student/teacher has the right to
expect a working/learning space as
practically free of all the sexual forces
and games in play as possible.
Adult behaviour, as opposed to adultrated behaviour, goes a long way
towards creating a mutually respectful
working and learning environment. If
the parties concerned find the situation
untenable, then one or both of them
can find employment elsewhere.
Ted Gaffney

Waterford, CT, US

The central narrative in Mikhail
Gorbachev’s memoir is his reluctant,
at times anguished, acceptance that
the second Russian president Vladimir
Putin is made of more authoritarian
stuff than the first and last president
of the Soviet Union wanted to admit.
He wished fervently to see him as
one come to power to end the “chaos”
of the erratic rule of Boris Yeltsin, who
gained supreme power by his ruthless
pulling down of both Mr Gorbachev
and the Soviet Union in 1991. This
power, in the unravelling economy
and society of the post-Soviet years,
was unequal to the task of establishing
either order or the rule of law, the
more so after Yeltsin, a man of talent
and courage, fell prey to depression
and drink.
The view of Mr Putin as the latest
Russian bear unsheathing its claws to
gouge out more territory in the west is
the default opinion in Europe and
America. In Mr Gorbachev it is more
interesting since the reference points
of his world view are neither western
nor the prevailing Putin-influenced

Russian take. They come out of his
brave, doomed effort to turn the
Soviet Union from failing communist
superpower into the eastern extremity
of Europe, which he called — we
should ever be so lucky — our
“Common European Home”.
Instead, he has had to witness the
narrowing of his generous vision into
the aggressive meanness of Mr Putin,
for whom R
Russia is at once the
suffering victim of neo-imperialist
aggression and the Slavic phoenix

Tata pension reduction
plan is not a new idea
Sir, I read with interest the coverage of
the change to Tata pensions (“The risk
to UK pensions from Tata’s special
deal”, May 27), from an uplift linked to
the retail price index to one linked to
the consumer price index. Your
editorial notes that the Tata proposal
could set a precedent in reducing
pension payments to those already
retired.
This change has of course been
implemented without adverse
comment for those in the public sector.

If promises made on behalf of the
nation are disregarded, why expect
more from a private sector company?
Dr Judith Dawson
Northampton, Northants, UK

empowered to redress the wrongs of
the past two decades and restore
empire lost.
Mr Gorbachev began with high
hopes of the former KGB LieutenantColonel Putin: “He was doing his best
to develop policies in the interests of
Russian citizens and to overcome the
inertia of the Yeltsin years.”
Doubts creep in from abroad: a talk
in the mid-2000s with the French
prime minister, who expresses the
view that Mr Putin would need to be
authoritarian to carry through his
programme. Mr Gorbachev dissents —
but when, after the bloody siege of a
school in the North Caucasus by
Chechen terrorists in 2004, Mr Putin
seizes the chance to abolish elections
for regional governors and non-party
candidates for the Russian parliament,
the doubts become more overt.
By the end of Mr Putin’s first two
terms, Mr Gorbachev sees him as one
with no interest in democracy. After

an interregnum with Dmitry
Medvedev as a virtual presidential
puppet, Mr Putin returns. Mr
Gorbachev at this point views him as
one prepared to have elections rigged,
whose position and wealth make it
perilous to renounce power and whose
“arrogant falsification” of the results
of the ballots for the Duma and the
presidency and his suppression of
non-governmental organisations seen
to be carrying out the orders of foreign
masters, seal the conviction that this is
a new form of tyranny.
Mr Putin’s version of tyranny is in
many ways less oppressive than the

Pax Americana has not
exactly been peaceful
Sir, In your editorial, “Obama’s pivot to
Asia remains unfinished” (May 26) you
write “[Mr Trump] undercuts the
bipartisan assumptions that have
driven 70 years of US foreign policy,
not least in the Asia Pacific. Pax
Americana has by and large kept the
peace . . .”
In that 70 years we have had two
major wars, in Korea and Vietnam. The
Vietnam war, in particular, pointlessly

caused the deaths of more than 1m
people. I would not describe this as
keeping the peace. The US position
seems to be that it is the judge and
enforcer of international agreements
anywhere in the world.
Mr Trump believes that Asia would
be better off if its security was left to
Asians. I think he has a point.
Nick Patterson
Cambridge, MA, US

Soviet version; in some ways, as in its
aggressively mendacious propaganda,
it is worse.
It is, like Mr Gorbachev, a garrulous
book (I once managed to ask him four
questions in a two-hour interview). It
is padded out with reproductions of
his and others’ articles, expressions of
support from grateful Russians and
reports of his talks with other
statesmen. He describes at length the
creation of his Social Democratic
party, which has achieved little; and
he dwells on the activities of the
Gorbachev Foundation, which has
achieved less.
But beyond that — approaching his
90s, sometimes ailing, always

mourning Raisa, his wife — he has
produced a reflection full of an earnest
desire that former enemies
understand each other and find
f
common ground in a febrile world.
This is a reminder of how vast his
achievement was in allowing in the
light of freedom. Where Nelson
Mandela, his contemporary, was great
beyond the whites’ deserts in building
a post-apartheid nation, Mr
Gorbachev was great beyond the
deserts of the Soviet Union (and
perhaps even of the west, which could
barely understand or trust him) in
proposing a way for the despotic world
to aspire to democratic governance,
freely organised civil society and rule
of law. That he failed, he keenly
knows. Our best hope is that his ideas,
in time, succeed.
The writer is an FT contributing editor


★

Monday 30 May 2016

9


FINANCIAL TIMES

Comment
It is the Aegean where the real threat lies
europe

Wolfgang
Münchau

A

t the start of the year, the
EU was paralysed by the
prospect of three simultaneous, potentially destructive threats: Grexit, Brexit
and the refugee crisis. Since then, one
has receded but not disappeared; one
remains undecided; and another is in
danger of blowing up.
The receding crisis is Greece. The
agreement last week removed the risk
of a Greek exit from the eurozone in the
immediate future. The deal characteristically leaves a number of open ends,
which is troubling but not necessarily
disastrous.
In a significant concession the International Monetary Fund accepted that
an agreement on debt relief for Athens is
postponed for another two years. This
suits Wolfgang Schäuble, German


finance minister, because his party
opposes debt relief. But the deal also
requires him and other European
finance ministers to come clean before
the end of this year on what debt relief
measures they intend to propose. The
numbers will have to add up — an
unheard of event in eurozone crisis resolution politics. There is enormous
pressure on eurozone officials to deliver
a set of figures that the IMF can accept.
The European finance ministers have
also conceded that Greece’s gross
financing needs should not exceed 15
per cent of economic output. The GFN is
the IMF’s preferred metric. It is the
money a country needs to fund interest
rates and debt repayment. The acceptance of a GFN ceiling is a big step forward as it is the mechanism that forces
debt relief. The problem with this latest
accord is that the creditors might not
keep their word. The irony is that the
Bundestag could approve Greek debt
relief today but may no longer be able to
do so after the federal election next year.
The Alternative für Deutschland, a
populist anti-immigrant and anti-euro
party, and the liberal Free Democrats,
are both in favour of Greece leaving the

bloc. Neither party holds a seat in the
Bundestag but both are expected next

year to meet the threshold requirements for representation. Add them to
the sceptics among the governing Christian Democrats and there may be no
majority for debt relief. Mr Schäuble’s
commitment this week to debt relief in
2018 is simply not credible.
The second of the potential shocks is
Brexit. Opinion polls suggest that the

In its negotiations with
Turkey over the refugee
crisis Europe has lost
the moral high ground
chances of the Remain campaign have
improved though it is not in the bag yet
— a lot can happen before the June 23
vote. The European Commission’s
attacks on Boris Johnson, the former
mayor of London and Brexit campaigner, or the suggestions that the EU
would penalise the UK should it vote to
leave are not helpful. This stuff plays
into the hands of the Leave campaign.

While the prospects for Britain in the
EU may look marginally brighter than a
month ago, Angela Merkel’s refugee
deal with President Recep Tayyip
Erdogan of Turkey is going in the opposite direction. At first it looked as
though the German chancellor would
extricate herself from the mess of her
migration policy by co-opting Ankara

into a refugee swap agreement. The deal
foresees that Turkey sends one legal refugee to the EU for each illegal migrant
Turkish patrol boats pick up in the
Aegean Sea. The main tangible effect is
not the swap but the signal that it sends
to the refugees. Fewer have since chosen
the sea routes. Mr Erdogan last week
threatened not to ratify the agreement.
He rejects the EU’s demand to modify
his country’s antiterrorism laws, which
allow him to persecute political dissidents, including journalists.
The EU’s promise to allow Turks visafree travel to the borderless Schengen
zone is officially conditional on the protection of civil rights in Turkey. Mr
Erdogan now insists that the EU liberalises the visa regime unconditionally or
else he will repudiate the refugee deal.
The EU cannot accept this — though

watch out for a fudge. Mr Erdogan certainly gives the impression he needs the
deal less than Ms Merkel. She visited
him last week, and diplomatically
avoided meeting Kurdish MPs, whose
immunity had just been lifted by the
Turkish parliament, or local journalists,
who face criminal charges merely for
doing their job.
If the deal collapses and Ankara
relaxes the patrols, the refugee crisis
will flare up again. More important, the
deal violates European values. It can
only work if the EU turns a blind eye to

Turkish human rights violations. Of all
the arguments for leaving the EU, this
one has some substance: in its negotiations with Turkey the EU has lost the
moral high ground.
By the end of the year, we may find
that the EU narrowly escaped all three.
Officials will congratulate each other.
But soon after, they will realise that the
Greek debt crisis remains unresolved,
that Britain’s new rules of engagement
with the EU are hideously difficult, and
that the only winner of the deal with
Turkey is Ms Merkel, as always.


The mystery of weak productivity
AMERICA

Edward
Luce

L

ook around you. From your
drone home delivery to that
oncoming driverless car,
change seems to be accelerating. Warren Buffett, the great
investor, promises that our children’s
generation will be the “luckiest crop in
history”.

Everywhere the world is speeding up
— except, that is, in the productivity
numbers. This year, for the first time in
more than 30 years, US productivity
growth will almost certainly turn negative following a decade of slowdown. Yet
our Fitbits seem to be telling us otherwise. Which should we trust: the economic statistics or our own lying eyes?
A lot hinges on the answer. Productivity is the ultimate test of our ability to
create wealth. In the short term you can
boost growth by working longer hours,
for example, or importing more people.
Or you could lift the retirement age.
After a while these options lose steam.
Unless we become smarter at how we
work, growth will start to exhaust itself
too.
Other measures bear out the pessimists. At just over 2 per cent, US trend
growth is barely half the level it was a
generation ago. As Paul Krugman put it:
“Productivity isn’t everything, but in
the long run it is almost everything.”
It is possible we are simply mismeasuring things. Some economists believe
the statistics fail to capture the utility of
setting up a Facebook profile, for example, or downloading free information
from Wikipedia. The gig economy has
yet to be properly valued. Yet this argument cuts both ways. Productivity is calculated by dividing the value of what we
produce by how many hours we work —
data provided by employers. But recent
studies — and common sense — say our

iPhones chain us to our employers even

when we are at leisure. We may thus be
exaggerating productivity growth by
undercounting how much we work.
The latter certainly fits with the experience of most of the US labour force. It
is no coincidence that since 2004 a
majority of Americans began to tell pollsters they expected their children to be
worse off — the same year in which the
internet-fuelled productivity leaps of
the 1990s started to vanish. Most Americans have suffered from indifferent or
declining wages in the past 15 years or
so. A college graduate’s starting salary
today is in real terms well below where it
was in 2000. For the first time the next
generation of US workers will be less
educated than the previous, according
to the OECD, which means worse is
probably yet to come. Last week’s US
productivity report bears that out.
It is also possible we are on the cusp of

gration and erecting trade barriers
would subtract from US growth. Likewise, it is hard to think of a bigger waste
of resources than another budget-busting tax cut for the highest earners. Yet
his popularity is clearly fuelled by economic frustration.
One or two of Mr Trump’s ideas, such
as investing heavily in US infrastructure, would be helpful. Indeed, at a time
like this, it is all but a given — and a rare
point of agreement with Hillary Clinton.
Research shows that part of US economic growth is created in small numbers of hyper-connected urban hubs,
such as Los Angeles and the corridor

between Boston and New York. Steps
that would better link America’s urban
boomlands to the large economic backwaters around them would help spread
growth more widely. Such projects
would take time to bear fruit. Yet it is
worth sticking to that “hunger games”
image for a moment.
Imagine that the US takes much the
same course in the next 10 years as it has
over the past decade. That would mean
a further corrosion of US infrastructure,
continued relative decline in the quality
of public education and atrophying
middle workforce skills. It would also
hasten the breakaway of urban America’s most gilded enclaves, further
enriching the educated elites. It could
possibly trigger a breakdown in democratic order. If you think Mr Trump’s
rise is ominous, picture America after
another decade like the past one.
Which brings me to the remedy: a universal basic income. UBI has several
plus points. It draws support from all
parts of the ideological spectrum: libertarian and socialist alike. It would
replace today’s messy overlap of benefits and do away with the humiliation of
proving your eligibility to federal
bureaucrats. Most important of all,
however, it would buy a measure of
social peace. Today’s stagnation may be
temporary or lasting. We have no way of
telling. Common sense dictates we must
act as though it is here to stay.


Everywhere the world is
speeding up — except, that
is, in the productivity
numbers.
a renaissance — we just don’t yet see it.
The economist, Robert Solow, quipped:
“You can see the computer age everywhere but in the productivity statistics.”
That was in 1987. A few years later the
computer age showed up in big numbers. By the same token, we may be on
the cusp of reaping the benefit of artificial intelligence, personalised medicine
or take your pick. This may better fit our
own fevered imaginations. Or it could be
a chimera.
Until then, the US and most of the
west are stuck with a deepening productivity crisis. The slowdown has one
manifest effect and a seductive remedy.
The first, an embittered backlash
against business as usual, is already
upon us. Witness Donald Trump’s
ascent. Most of his proposed cures for
middle America’s anguish are worse
than the disease. Shutting down immi-



Venezuela sets the stage for a chaotic and tragic exit
OPINION

Daniel

Lansberg-Rodriguez

O

h, that men should put an
enemy in their mouths to
steal away their brains.
Nicolás Maduro’s stint as
president of Venezuela has
had Shakespearean overtones from the
start. Ascending to power in 2013 he
claimed to have conferred with the
ghost of Hugo Chávez, insisting the cancer that killed his predecessor — whom
he calls “father” — was a case of CIA
murder most foul.
Our revolutionary Hamlet is now a
tropical Macbeth. Reviled by his subjects, increasingly isolated, he paces the
presidential stage declaiming defiant
soliloquies against offstage enemies.
While he plays dramatically for time,
the country is collapsing. The Interna-

tional Monetary Fund predicts an 8 per
cent economic contraction for 2016; the
inflation rate is the fastest in the world;
electricity and running water are luxuries. Food and medicine are scarce.
Anaemic oil prices and a heavy debt
load leave scant foreign exchange for the
import sector. Mr Maduro is loath to
reverse unsustainable fiscal and monetary policies he inherited from his mentor — or to accept help from outside. It

becomes harder to tell if he is merely
clinging to power at any cost or actively
scuttling his country.
Having declared a state of emergency,
Mr Maduro has been visiting island
neighbours this week. Ostensibly seeking to raise cash, he will also be hoping to
shore up friendly votes in case the
Organization of American States tries to
take action against his repression at
home. While abroad he would do well to
monitor property prices: given the billions of petrodollars that have disappeared during his time in office, and the
worsening conditions suffered by his

people, a Venezuelan retirement may
not be an option.
The trip shows how isolated the revolutionary heir to Chávez has become.
With the suspension of Dilma Rousseff
from the Brazilian presidency, Mr
Maduro has lost his last powerful
regional ally. Gone are the days when
every leading South American country

It is hard to tell whether
Maduro is merely clinging to
power at any cost or actively
scuttling his country
bar Colombia was leftwing and populist.
That Mr Maduro, like Ms Rousseff,
will not finish his six-year term looks
incontrovertible. A regional propensity

for economic boom-bust cycles and
popular uprisings means most Latin
constitutions include escape valves that
function as de facto votes of no confi-

dence. Venezuela is no exception, and
the opposition has begun a recall procedure, gathering many times the
required number of signatures.
Yet, in contrast with Brazil, Venezuela’s institutions lack the independence and the incentives for such constitutional processes to work their course.
In a manner reminiscent of a reality
show, the constitution dictates that
should the president hold on until January 10 next year he can in effect appoint
his successor rather than holding a snap
election that he would surely lose.
Since an opposition government
would investigate and prosecute the
graft of the revolutionary era, Chavismo
bureaucrats and judges are working in
lockstep to stymie the process until that
date, as much to protect their own
impunity as Mr Maduro.
If they are successful, the party might
be able to buy itself a two-year stay of
execution by sacrificing the figurehead.
Yet in walking a fine line — provoking
sufficient destabilisation to justify

delays in the recall procedure but not
enough to provoke the masses or the
military into outright overthrow — the

regime is playing a dangerous game. A
majority of Venezuelans want Mr
Maduro to leave office and popular
unrest shows no sign of abating. The
stage is set for unprecedented social
upheaval.
Cognisant of this Henrique Capriles,
former opposition presidential candidate, told the military: “The hour of
truth is coming, to decide whether you
are with the constitution or with
Maduro.”
Mr Capriles will doubtless find sympathetic ears in the opaque Venezuelan
armed forces, although many have as
much cause to fear the end of revolutionary impunity as do the bureaucrats.
The Lamentable Tragedie of Venezuela,
now in its final act, runs long and seems
increasingly likely to end in violence.
The writer teaches Latin American business at the Kellogg School of Management

Flattery is the
sincerest form of
irritation in both
pop and politics
OPINION

Ludovic
Hunter-Tilney

P


erhaps it is a clever ploy to
engage the attention of the 54
per cent of British students
polled who were clueless
about when the EU referendum is taking place. But even if so, Matthew Healy, singer with chart-topping
UK band The 1975, is having none of it.
He has accused the Electoral Commission of ripping off his group’s artwork in
its campaign to persuade Britons to vote
on June 23. The commission, which
oversees all UK elections, has devised a
striking series of images to appear on
billboards, television and leaflets showing a pink neon sign reading “The 2016
EU referendum voting guide” in a variety of unusual locations.
It denies the charge and claims the
neon-sign idea was first used in the Scottish referendum last year, which is true.
But the imagery also looks uncannily
similar to the promotional photos for
The 1975’s verbosely titled album, I Like
It When You Sleep, for You Are So Beautiful
Yet So Unaware of It. Suspicions were
heightened by the revelation that the
commission’s video advertising the leaflet was filmed by the director who made
one of The 1975’s videos.
Healy responded in the time-honoured fashion of the aggrieved rock star.
“How do you sue the Government??” he
tweeted to his 610,000 followers. As the
Electoral Commission has nothing to do
with the government, the question was
wrong. But it was also illuminating.
Musicians have hypersensitive antennae for allegations of imitation.

Copying is rife in pop. With hundreds
of thousands of songs released each year
— there were almost 80,000 new albums
in the US alone in 2011 — it grows harder
not to echo at some level a previous
piece of music. The 1975’s work is full of
such echoes, mostly generic in feel,
alluding to the sound of 1980s pop. But
they can sometimes be more exact.
Their track “Love Me” seems very
clearly related to David Bowie’s “Fame”.

However infuriating the
mimicry, politicians
— unlike music stars —
have to suck it up
Copyright laws are meant to distinguish between tribute and plagiarism.
That has grown harder, however. Last
year’s US court decision awarding the
estate of soul singer Marvin Gaye $7.4m
(reduced to $5.3m) in a copyright
infringement case against Robin Thicke
and Pharrell Williams, makers of the
worldwide 2013 hit, “Blurred Lines”,
narrowed the degree of similarity permitted between one song and another.
Caveat imitator is the rule in pop.
Copying is rife in politics, too. Politicians routinely pilfer ideas from their
opponents, as with George Osborne, UK
chancellor of the exchequer, rebranding
the UK minimum wage, first introduced

by a Labour government, as a National
Living Wage. Bernie Sanders, the Democratic presidential candidate, joked
about a campaign advert that he
thought was his own only to discover it
was actually his rival, Hillary Clinton,
parroting him. However infuriating the
mimicry, politicians have to suck it up.
Policies are not copyrightable.
Stricter conditions apply to elections.
Since the 1990s, when a rash of “Literal
Democrats” and “Labor” candidates
infested ballot papers, UK parties have
had to be registered with the Electoral
Commission. However, as anyone will
know who has faced a choice between
the Socialist Alliance and Socialist Alternative parties in the voting booth, scope
for confusion remains.
The spat between The 1975 and the
Electoral Commission reveals a clash of
cultures. Like the students unaware of
the EU referendum date, frontman
Healy displays a woeful lack of political
literacy. “You can’t imbue my identity
as an artist with something as divisive as
The @eureferendum,” he tweeted,
apparently blind to the irony that his
group shares its name with the year
when UK held a referendum on continued membership of the European Economic Community.
Meanwhile the Electoral Commission, which should be above such things,
appears to have fallen prey to the political class’s habit of copyism. In pop

music, unlike in politics, imitation is not
flattery — it is actionable.
The writer is the FT’s pop critic


★

10

FINANCIAL TIMES

Monday 30 May 2016

BUSINESS EDUCATION

A change of direction to align more with business
A passionate Open
University advocate seeks
to turn the institution’s
fortunes round, reports
Gonzalo Viña

need for quality higher education is
staggering. For instance, with 26m
higher education places in India, the
country needs another 14m, according
to a British Council report. In China, the
higher education sector has tripled in
size since 1997.
“The world cannot build enough universities,” says Mr Hill, arguing that a

shift to online and distance learning
must follow.
The Open University has students
registered from 142 countries and is
looking to expand relations with large
multinationals to sponsor employees.
A third area of growth from overseas
is coming from partnerships with universities that want to develop online
teaching. One example is the Arab Open
University, which operates from several
capitals in the Middle East, and which

S

teve Hill was an assistant
bank manager for NatWest in
the UK, when he was told by
his employer that he would
need to have a degree to
become a branch manager.
With only a few qualifications from
school, NatWest sponsored his studies,
taking his career from a local branch to
the City of London.
Two Open University degrees later
and a third soon to be completed, Mr
Hill now works as the university’s director of external engagement, liaising with
businesses and running efforts to
expand overseas.
At least that is the case by day. At

night, he continues his university studies. He is working on a module that he
hopes will help him complete a degree
in philosophy, politics and economics.
He has studied almost 20 Open University courses and countless Moocs (massive open online courses).
“I started studying with the OU in
1993 and I am still studying today,” says
Mr Hill. “I’m studying the Naked Soldier
[dilemma]. So, if someone is wearing a
uniform in war I can shoot that individual. But if I look through my rifle sights
and I see a combatant not in uniform,
they have the gun at the side of the tin
bath and they’re having a bath in the
field, can I shoot them?”
Asked what day-to-day application
such ethical reasoning might have at the
university’s modernist campus in Milton Keynes, 55 miles north of London,
he replies: “I just think it makes you
think about a complex situation and
look at it in different ways. And I’ve run
out of business leadership courses to
study.”
It is just as well that Mr Hill is such a
passionate believer in the product
because a large part of his job is to turn
round the university’s fortunes. The
organisation has been the victim of a
squeeze that began in 2011 as a series of
changes in how universities are funded.

‘Revenue from corporate

employer relationships is
much more important to
us today than in 2010’

Life-long learner: Steve Hill, the director of external engagement, is overseeing the university’s expansion abroad — John Robertson

Business programmes
Courses offer sector focus
About 2,400 employers sponsor Open
University students and 86 of the
FTSE 100 have staff on its
programmes. Such relationships create
sector-specific courses, such as the
one generated by a partnership
between the university, the National
Health Service and consultancy Hay
Group to tailor the curriculum for
health service professionals.
Steve Hill says they “contextualised
it for a clinical environment”. The
NHS puts more than 3,000 staff

through the programme each year.
Similarly, BT and IBM have put
members of their leadership teams
through the tailored MBA
programmes, where they can work in
groups and “can then have a more
open discussion about issues that
relate to that employer”.

With the Football League Trust, the
university created an undergraduate
course in business management in
sport and football.
Younger students are not easily
enticed by management courses but
“as you put a football wrapper around
it, it becomes much more interesting”,
Mr Hill says.

While the shift towards charging students £9,000 a year for tuition has been
a boon for most universities, it has hit
the Open University hard. Mr Hill says
that it has lost many of those over 40
who were studying as a hobby.
As student numbers declined to
174,000 last year from more than
250,000 in 2011, income fell to £404m
in 2014 from £471m in 2011, and only
started to recover last year to reach
£422m.
The university was founded in 1969 to
provide “degree-level learning to people
who had not had the opportunity to
attend traditional campus universities”.
While it has continued to operate
under the same open admissions policy
— 40 per cent of students have no more

than one A-level and a fifth live in Britain’s most deprived areas — Mr Hill has

been charged with making it more relevant to the needs of businesses and with
international expansion.
The result is that revenues from both
those sources account for about 10
per cent of the university’s annual turnover and will continue to show
double-digit growth in the years ahead,
he predicts. “The revenue that we generate from our corporate employer relationships is much more important to us
today than it was in 2010.”
If working directly with employers to
tailor courses to their needs has been a
lifesaver for the Open University, it is
the possibilities for overseas expansion
that look set to secure its future. The

has turned to the British institution to
develop its curriculum and give access
to millions of women previously
excluded from higher education.
For all the strengths of the Open University and British education, Mr Hill
says that the UK can learn much from
abroad. He cites the concept of “learning banks” or life-long learning
accounts pioneered by the Open University in Shanghai for more than 800,000
students.
“Some of the systems I’ve seen in
China have just completely blown my
mind,” he says. “I’m looking at credits
that an individual has accumulated over
30 years and it’s all there in one place.
How interesting would that be as an
employer, if you could then see someone’s dedication and focus to their own

self-development?”
Having studied an Open University
course for most of his adult life, Mr Hill
is confident that his personal learning
bank will continue to grow regardless of
what the future holds.
“I’ve studied with the OU for 23 years.
It’s a bit addictive actually, but I do it to
unwind.”


★

Monday 30 May 2016

11

FINANCIAL TIMES

BUSINESS EDUCATION

Tales of failure win over graduate ceremonies
A guest speaker adds a
light touch to the day,
writes Jonathan Moules
Graduation season is one point in the
year when the power of a strong alumni
network provides a helping hand to
those running business schools rather
than their students.

During the past month, hundreds of
thousands of MBA and masters degree
students will have attended these formal ceremonies to collect their scrolls
from the school dean.
The guest speaker offers a moment of
relief between the rigmarole of dressing
up in graduation gowns and what is usually a long official ceremony. It is up to
the business school to find the right person to take to the podium.
For those institutions at the top of the
FT rankings tables, this task is made
easier by the number of A-List senior
figures from business, politics and sport
that have attended classes on their campuses over the years.
Stanford Graduate School of Business,
for instance, this year booked former
student Mary Barra, chairman and chief
executive of General Motors, the world’s
first female head of a global carmaker.
Her links with Stanford GSB go back
to 1988 when she received a GM fellowship to study at its Silicon Valley campus, completing her MBA in 1990.
Upstate at the University of California
Berkeley’s Haas School of Business, Carrie Dolan, chief financial officer at peerto-peer loans start-up Lending Club,
gave the graduation address.
Ms Dolan, a two-time Haas graduate,
completed her bachelors degree in
finance and accounting in 1987 and then
worked as an accountant at Chevron,
the US energy group. She returned to
study for an MBA that she finished in
1997.


Overcoming adversity
The Wharton School at the University of
Pennsylvania has also been able to call
upon a former alumna, Ruth Porat, who
received her MBA from the school in
1987.
She is chief financial officer at Alphabet, the company created as the parent
group for online search company

Research round-up

The silver
lining of
deviance
JONATHAN MOULES

Staff misconduct is generally viewed, at
best, as a predicament to be managed
and, at worst, a catastrophe that damages morale across an organisation.

Ruth Porat: CFO of Alphabet (Google)

Pete Carroll: NFL head coach

Mary Barra: CEO of General Motors
Bloomberg and Getty Images

Google. Ms Porat used her speech for the
current crop of Wharton graduates to

explain that behind every successful
career there are likely to be several bad
experiences both inside and outside of
your work life.
In her case this included being diagnosed and overcoming breast cancer.
“Whether it is starting a business or
starting a family, don’t put it off,” Ms
Porat told her audience. “The worst that
will happen is that it will not work out.”
What to say in a graduation speech is
no doubt a challenge. Judging from a
selection of the addresses given this
year, sharing the pain of failure seems a
popular choice.
Presumably this is a way to win over
Speech from a Congressman
Matt Salmon tells MBAs why
no corporate success can
compensate for failure at
home: ft.com/mba-blog

audiences, who might believe that the
top flight of business leaders have been
blessed with a greater degree of luck
than the rest of us.
The University of Southern California’s Marshall School of Business invited
Pete Carroll, the former coach of the
USC Trojans, the college’s American
football team, to address the MBA
graduates.

The 64-year-old is not only the
National Football League’s oldest serving head coach, he is one of three managers in the history of the sport to have
won a Super Bowl and a college football
national championship.
Rather than talk about his many
achievements, however, Mr Carroll
mentioned the 27 years he spent “struggling” as a coach before taking the role
at USC.
During that time he had 12 different
jobs, four of which were unpaid and five
from which he was fired, Mr Carroll told
his audience at Marshall.
“The media were on my butt,” he

added. “Fortunately it was all BS.” That
is to say “before social” media.

Keep it simple
Orlaith Carmody is a former journalist
who started a business helping executives communicate better.
Coaching people in how to deliver
public speeches is a key part of her
work.
The best speeches are those given in
normal language by those who have

One of the worst things for
an address would be to
talk only about your own
personal achievements

taken time to understand their audience and put them first, she says.
“Less is more. Give me a couple of
messages I can really understand and
remember, rather than lots of complex
ideas that I can’t possibly absorb.”

One of the worst things a business
school graduation ceremony speaker
can do is talk about his or her own qualifications, according to Ms Carmody.
“If you try to use the opportunity of a
graduation speech to ram this down the
throats of your audience, your speech
will die on its feet,” she says.
Ms Carmody claims that one of the
best speeches she heard was delivered
by Brian MacCraith, the president of her
alma mater, Dublin City University,
shortly after he was appointed to the
role in July 2010.
“With extraordinary humour, selfawareness and openness, he shared his
vision for the university using really
clear imagery and simple language,” she
recalls.
“He spoke of his love for his wife and
family and the support they have given
him throughout his career and left us all
very impressed, moved and completely
of the view that the university was in
safe hands.
“What more can a speaker do?”


Brian Gunia, assistant professor at Johns
Hopkins Carey Business School in Baltimore, finds however that such “deviance”, or improper behaviour in the
workplace, might paradoxically prove
beneficial to general productivity.
He co-authored the paper with Sun
Young Kim of Iéseg School of Management in France.
Previous studies have focused on the
impact on those committing the misconduct. This misses what most organisations would be presumably more concerned about — the effect on staff as a
whole, according to Prof Gunia.
Instead, he looked at the behaviour of
the majority of “non-deviant” people
working for an organisation where there
had been a case of misconduct.
From three separate studies in the US
with about 200 participants, the
research team found that misbehaviour
by a few pushes other colleagues to work
harder in order to alleviate their own
discomfort with working for an organisation whose image they feel has been
tarnished.
“The silver lining of organisational
deviance may be the efforts of the uninvolved,” Prof Gunia says.
Although encouraging misconduct
would be “patently unwise”, the authors
note that deviance does happen with
unfortunate frequency.
The problem might be that bosses too
often do not know how to respond, or
react in ways that exacerbate the issue.

The tendency of managers to blame a
few “bad apples” when misconduct
occurs is an error, the researchers argue,
as this stops responsibility being
assigned to the organisation’s structure
and leadership.
Email new study findings to



★

12

FINANCIAL TIMES

Monday 30 May 2016

BUSINESS LIFE

In search of the
missing office
minority —
the over-fifties

The other day I gave a talk to a group of
investment bankers. I did what I
always do when I’m in front of a
business audience: scan the crowd and
try to work out how many men there

are to every woman. If they are young
City of London lawyers, the numbers
are usually roughly even, while for
senior bankers and financial advisers it
can be as bad as one to 20.
On this particular afternoon the ratio
was a bit better than usual — about 1:4
— but as I looked around it occurred to
me that I was counting the wrong
thing. The tiniest minority was not
women. It was not even people from
ethnic minorities, this being a global
conference. It was the over-fifties.
In about 200 bankers I could see only
one person who seemed to be my age —
and that was the chief executive. As I
walked back through the City, I stared
at the people going home: a sea of
commuters in their twenties, thirties
and forties. Only occasionally did I spot
a contemporary, sidling past with head
down. I briefly got excited when I saw
two people who looked about 60, but
on closer inspection their brightly
coloured anoraks and the suitcases
they were wheeling revealed them to
be tourists.
The disappearance of
fiftysomethings from offices in London


Lucy Kellaway
Onwork

may not be new, but I have been slow
to notice it. That’s probably because it
is still possible to be over 55 and a
journalist on the Financial Times
without feeling too outlandish. It is
hard to feel too exposed when the
finest and most valuable columnist on
the FT has a good 10 years on you.
The same is not true in other parts of
our business. Last week there was a fire
alarm in the office and I looked at the
human snake of colleagues from the
commercial departments shuffling
down the stairs. Number of people my
age: zero.
Possibly it is just a case of the
policemen getting younger, but I don’t
think so. A couple of fellow journalists
in their fifties assure me that they are
the oldest people on their commuter
trains from St Albans and Muswell Hill
arriving in the City every morning.
A friend who is about to turn 50 in a
large consumer products company is
keeping quiet about his age and hoping
that no one notices him. When he
joined 20 years ago there were plenty

of people in their late fifties, often with
a PA of the same age or older. Now
there are no more PAs of any age and
the managers mostly slope off in their
late forties, having been handed a fat
cheque to do so.
The few who hang on in mainstream

corporate jobs fall into two tiny camps:
the highest flyers, who are either a
chief executive or hoping to become
one; and the lowest flyers, who have
succeeded in making themselves
invisible and avoided all rounds of
redundancy.
This elimination of the vast rump of
fiftysomethings from London’s office
spaces is at odds with what is supposed
to be happening, which is that people
are working longer, not just to a normal
retirement age but beyond. In the past
10 years or so, the stats show, the
number of people in the UK working
beyond 64 years of age has doubled.
If investment bankers, lawyers and
accountants are an exception, that is
neither puzzling nor worrying. By their
late forties they have earned so much
money to have no need for more, and
after 25 years of working all hours in

dysfunctional environments they have
generally had enough. They are less
victims of ageism than a product of
how the system works. They have done
the hard graft and can now do
something more pleasant with their
time — either nothing at all, or a bit of
consultancy, or be born again as a
photographer or landscape gardener.
But for the next slice down it is
utterly baffling. Where are all the
fiftysomethings who used to do

‘

HR departments
will soon laugh at
the fuss they made
over keeping spoilt
millennials happy

’

Monday interview. Tran Qui Thanh, chief executive, THP

W

Morgen Ommer

Second

opinion

The analyst

fight if I want to survive.” Fighting for
survival, Mr Tran says, was a theme that
drove his businesses, in one form or
another, for decades.
In 1977, two years after Saigon was
captured by the Vietcong, Mr Tran
joined a ragtag industry of single-room
yeast makers, operating in an economy
on the brink of collapse.
With heavy sanctions levied on the
country by the US in 1975, manufacturers were cut off from much of the international supply of equipment and raw
materials. Mr Tran recalls how he discovered nylon hammocks left behind by
US troops, which he used as sieves to
catch the silty yeast.
The rudimentary innovation helped
the fledgling business scale up and edge
out competition. While hyperinflation
wiped out many other yeast producers,
Mr Than was buying every hammock he
could find and expanding operations.
“With 300 per cent inflation, if you
earn 300 per cent per year, that is the
break-even point,” he says, noting that
the economic conditions required him
to trade exclusively in gold. “We made
lots and lots of money . . . In one day I

[could] earn 3oz of gold. At that time,
one house was just 1oz so I could buy
three houses a day.”
By the time Mr Than launched THP in
a small shop in 1994, he had ridden the
booms and busts of several industries.
Yeast prices collapsed in 1979, forcing
THP is the uncontested leader among
private-sector beverage businesses in
Vietnam, says Raphael Mok, Asia
analyst at BMI Research. He does,
however, note how THP struggled to
deal effectively with last year’s food
safety scare. The episode has not gone
down well among beverage consumers,
particularly the young and
well-informed. Mr Mok says: “Such
allegations could adversely affect the
group’s standing in the industry, as well
as its growth outlook.”

CV
Born Born 1953, Saigon
Education Mechanical engineering at the
Technical University of Saigon
Career
1977: Joins the Ministry of Industry,
Engineering, Industrial Equipment and
Farming; begins a small yeast
business.

1981: Starts a sugar processing operation;
expands into fructose seven years later.
1994: Founds THP Group as a beer maker
2001: Sells first energy drink.
2008: Launches herbal tea line
Interests Music, audio engineering and
equipment design, karate, boxing

him into sugar production. After more
than a decade of processing sugar cane,
government competition crushed his
small city factory with larger, low-cost
mills in the countryside.
THP, on the other hand, was carried
aloft by a wind of change in Vietnam’s
planned economy. Just two years earlier,
in 1992, the government had allowed
private enterprise. By 1995, US President Bill Clinton had lifted sanctions on
the country, opening it to mainstream
international trade for the first time in
20 years.
A gradual improvement in the protection of private property has allowed
companies such as THP to reinvest
earnings into long-term projects. Only
during the past three years has Mr
Tran had the confidence to invest hundreds of millions of dollars in three new
factories.
“Many businessmen in Vietnam were
worried that the government would
take their property. Now we believe they

protect our assets.”
Waiting for the right time to invest or
shift between businesses has been a
trademark of Mr Tran’s strategy. THP
started as a beer producer but margins
were later hit by a beer tax. Mr Than
moved to a business producing carbon

Working smarter

EMMA DE VITA

The business strategy of
Vietnam’s leading maker
of herbal teas and sports
drinks is to keep fighting,
writes Don Weinland

A taste for
innovation:
Tran Qui Thanh
used nylon
hammocks left
behind by US
troops when
1970s sanctions
cut off supplies
of equipment



Twitter: @lucykellaway

Make a career of interim roles
as the way we work changes

Thirsty work
hen Tran Qui Thanh
launched his first business in 1977, he accepted only gold in exchange for the yeast he
processed in a small room in warravaged southern Vietnam.
Nearly 40 years later, Mr Tran’s Tan
Hiep Phat Beverage Group, one of the
largest private enterprises in the country, deals mainly in legal tender —
although he suggests mischievously that
gold might still be buried at his home in
Ho Chi Minh City, formerly Saigon.
His elbows resting on a hotel poolside
table on a spring day in Hong Kong’s
Central district, the bottled-tea and soft
drink magnate recites decades’ worth of
anecdotes, tracing the story of how the
business has expanded. A dozen or so
plastic bottles of sweetened herbal teas
and energy drinks are lined up on the
table.
Mr Tran drinks 10 bottles of the stuff a
day, his daughter Tran Uyen Phuong
insists, gesturing admiringly at the
63-year-old man beside her. She has
tagged along to help translate but she is
also a shareholder in the privately held

family-controlled company.
In a plain black suit that accentuates
his thick, black moustache, he nods at
his daughter’s comment. That same
round face stares out from the logo
stamped on THP’s tea drinks.
The company, which started as a beer
maker more than 20 years ago, has
become Vietnam’s largest private beverage producer, with about 5,000
employees nationwide. It is subordinate
in market share only to multinational
soft drink companies such as Coca-Cola.
According to analysts’ estimates, it
holds 20 to 30 per cent of the beverage
market. In 2011, its market share in
products such as herbal tea, energy
drinks and soy milk was about 24 per
cent, according to the latest data from
Nielsen.
THP is celebrated in the country of
about 90m people. It hosts an annual
New Year’s party in Ho Chi Minh,
attended by thousands of revellers and
which is broadcast on national television. YouTube videos show the patriarch, known locally as “Dr Thanh”, singing karaoke-style alongside pop stars
and rock bands.
In 2008, THP sponsored the only
Vietnamese climbing team to scale
Everest. Photos from the team’s blog
show climbers in the national colours of
red and yellow, holding a flag with a logo

reading “number 1”, THP’s most popular sports drink. As a marketing campaign, the climb to the top of the world’s
highest peak counts as one of the country’s most extravagant.
Survival and success for Mr Tran’s
free-market enterprise in one of the
world’s last socialist strongholds has
come after decades of toil.
Following his mother’s death in a car
crash in 1962, Mr Tran, aged nine, was
sent to an orphanage in the south Vietnamese highlands. For six years he
endured a strict regime, at one point
being caged overnight with pigs as punishment for a scuffle with another boy.
“No food, no clothes and they put me in
a pig’s cage,” he says, sounding thoughtful and detached. “I learnt that I must

standard corporate jobs in human
resources, or marketing, or events?
Who employs them? Did they receive
generous enough redundancy
payments — and have enough money
in property — to get by earning a bit
extra here and there?
Whatever they are up to, the
pattern must be about to go into
reverse, for reasons we all know:
pensions are worse, health is better. If
we live to 100 and have to work until
we are 75 to support ourselves, big
companies will have to start taking us
back. Fifty- and sixtysomethings will
cling to their office jobs for dear life or,

if they lose one, will go searching for
another — possibly on a lower wage —
so that employers will have to stop
thinking of ageist excuses not to hire
them.
HR departments of large employers
will soon laugh at the fuss they have
made about the non-problem of how to
keep spoilt millennials happy.
Motivating fiftysomethings who have
already tired of the nonsense of
corporate life but still have to slog on
for another 15 years? That is going to be
the hardest management task yet
invented.

dioxide and fructose syrup, which later
helped him develop sports and energy
drinks. It was not until 2009 that THP
launched herbal tea, now its bestselling product, just as the climate for
investment in Vietnam became stable.
The 40-hectare factories cost $100m
apiece, he says. He also claims that an
investment bank and a multinational
company looking to invest in the group
valued THP at $2.5bn in 2011, although
he declines to name either. That would
put the company easily among the
country’s most powerful commercial
forces.

Expansion can also bring greater
scrutiny, which is not always welcome.
Last year Vietnamese media reported
that a fly and other impurities had been
found in some THP products. The
reports were followed by denials from
THP but it was seen to struggle to deal
with the aftermath of the issue. The
company says that customers had tried
to blackmail it by putting foreign objects
in bottles.
Competition from abroad could be a
bigger worry for the country’s private
sector. Mr Tran says Vietnam will need
more large, market-driven companies
following the Trans-Pacific Partnership,
or TPP, a far-reaching trade agreement
between the US and 11 other countries.
The agreement, awaiting ratification, is
set to open Vietnam to competition
from foreign companies that have had
only limited access.
At the same time, the government has
estimated that the TPP could increase
total exports from Vietnam by $68bn by
2025. There will be pressure on companies to become more competitive.
“We will compete directly with the
foreign companies,” Mr Tran says of the
trade agreement. “If private companies
are very weak, how will they survive?”

After decades of fighting to survive in
one of the most difficult environments
for private enterprise, the challenges
presented by the TPP are ones he has
prepared for all his life.

Making a successful career
as an interim manager who
works in temporary, fixedterm contracts can provide a
well-paid, varied and more
flexible way of working.
As work changes, more of
us should expect to have a
stage of our career where
we take on work for specific
periods of time, especially as
work is increasingly set up
for tasks not jobs, says
Professor Lynda Gratton of
London Business School.
Kirsty Holt has been an
interim manager since
leaving Barclays Bank 14
years ago. She works mostly
in financial services
overseeing change
management programmes,
ranging from two weeks to a
year or more. Her roles are
HR-focused. She says you

must be able to integrate
well and quickly into an
organisation.
“Don’t make enemies,” she
says. “One of the good
things [about] being a
contractor is that you don’t
get involved in office
politics. You can say it how it
is.” But this involves tact and
diplomacy.
Being a self-starter helps,
as does having the discipline
to work extremely hard.
“Clients are paying you quite
a lot and expect you to
deliver.” Her advice is to
invest time upfront when
taking on a project. The first
thing to do is to agree with
your client what your
objectives are, what you
need to deliver and any
other expectations.
The second is to get to
know the organisation and
the people you will be
working with quickly. Paul
Kincell has worked as an
interim manager for 18 years

in sales, marketing and
business development, and
he relies on companies such
as Odgers Interim for work.
He approaches each

contract in “giant sponge
mode”. Within the first week
of starting a contract, he will
talk to everyone he will be
working with to introduce
himself and to gain an
understanding of what is
needed.
“It’s part of my process
and gives me clarity.”
Taking the time to build a
strong relationship with an
interim management
recruitment firm pays off,
because it will be more likely
to send you into the right
role, as will maintaining a
good network of contacts
for future work.
Prof Gratton says building
a diverse network of
contacts is critical to filling
your pipeline of work. “You
don’t get jobs from friends,

but friends of friends.”
“You need to think about
the next job before you’ve
got the next job,” says Ms
Holt. She advises accepting
contracts only where you
feel you can make a
contribution. “I’m quite
selective,” she says. You also
need to be firm in saying no
to offers when you have
planned to take a break
between contracts.
Mr Kincell’s tips for
success include being willing
for others to gain the credit
for your work. “It gains buyin from your team and peers,
and the client benefits no
matter what.” Also, always
keep an eye out for quick
wins for a client that might
deliver savings or increased
profitability sooner than
promised.
The advantage of a career
in interim management is
having breaks on your CV
without it looking as if you
have been job-hopping, Prof
Gratton adds. “Interim

management will be ever
more appropriate and
beneficial.”


Feedback
Sarah O’Connor wrote last
week that millennials are
not the flighty freedomseekers that some believe;
instead, lack of job security
is not only potentially
psychologically scarring
but it denies access to
loans, phone contracts or
even a room to rent.
Readers responded online:
There is academic research
showing persistent
lower average
incomes over a
long period for
cohorts who
graduate during
recession. For me
the long-run effect
on family formation is
interesting: prior to
achieving the stability of
owning a home, few of my
generation will want to have


children. Many of my cohort
are putting off marriage.
And I anticipate many will
stop at having one child.
ChangeMyWorldView
What’s scarring is coming of
age during war (our
grandparents) or a constant
state of international
political and military tension
(our parents). I think
millennials in the developed
world (and I’m
including myself)
need to get over
this sense of
martyrdom and
acknowledge
how lucky we are
to have come of age
in a postwar era (bar rise
of terrorism). Having to rent
rather than being able to
buy a flat is not ideal but
hardly scarring. LB01


★


Monday 30 May 2016

13

FINANCIAL TIMES

ARTS

In the grip of
fearful brilliance
POP

Radiohead
Roundhouse, London

aaaaa

Ludovic Hunter-Tilney
In the darkness a recording rang out of
Nina Simone saying “I’ll tell you what
freedom is for me. No fear.” It was an
interesting choice of quote for a band
whose work is fuelled by feelings of fearfulness and anxiety. Take those away
and Radiohead would cease to exist, or
would exist in a radically different form,
possibly involving tambourines and lots
of smiling.
The first track showed how far they
are from reaching that unwelcome kind
of freedom. It was “Burn the Witch”, a

gripping exercise in mounting dread
played on a stage lit in infernal red light.
“This is a low-level panic attack,” Thom
Yorke intoned as Jonny Greenwood
sawed at his electric guitar with a bow,
an abbreviated stand-in for the orchestral strings on the recorded version.
Two drummers, Philip Selway supplemented by Portishead’s touring sticksman Clive Deamer, took up the slack
with a pounding groove.
This was the first of five tracks played
consecutively from Radiohead’s new
album A Moon Shaped Pool. “Daydreaming” was beautifully suspended between
Greenwood’s minimalist piano and
Yorke’s saddened voice. “Decks Dark”
featured bereft lines about being “in
your darkest hour”, comforted midway
through by warm interplay between
Colin Greenwood’s bass and Ed O’Brien’s
guitar. “Desert Island Disk” and
“Ful Stop” respectively drew on the
opposing 1970s traditions of folk-rock
and krautrock.
Yorke’s depressive lyrics were lifted
by the richness of the music. In proof of
their artistic stamina, the last of the
great 1990s alt-rock bands proceeded to
range through their back catalogue.
“Talk Show Host”, a 1995 B-side, was

given an almost hip-hop-like beat by the
two drummers amid psychedelic wahwah guitar from Greenwood. During

“My Iron Lung”, the ectomorph guitarist attacked his strings with the violent
intensity of a Giacometti figure starting
a chainsaw. It was spellbinding to see
him back in axe-maestro mode.
Yorke was in fine voice, his high croon
spiralling through the songs. The band’s
shift towards electronic music was represented by standouts from the transitional album Kid A, “Idioteque” and
“Everything in Its Right Place”. The
band’s developing ability to fuse rock
dynamics with elaborate electronic textures was traced through tracks such as
“Myxomatosis” and “Morning Mr Magpie”. It was not without stumbles —
“Nude” restarted after a mistake from
Greenwood — but the fallibility, amid
such a high level of musicianship, added
the humanising touch that Yorke’s
unintelligible stage banter could not.
They finished with new song “Present
Tense”, its title an affirmation of being in
the moment, followed by old track “You
and Whose Army?”, in which Yorke, at
the piano, adopted the guise of a Nina
Simone-style torch singer. Then came
“Paranoid Android” from their masterpiece OK Computer, climaxing in Greenwood’s brilliantly convulsive guitar
solos. The unforced passage between
past and present suggested Radiohead
have found their own version of
Simone’s freedom. We need not fear an
end to them yet.
radiohead.com


ARTS VIDEO
‘Springsteen, 66, is a muscular
advert for a life of exercise. He
gripped the microphone with
bulging biceps, vocal cords
straining in his neck like hawsers
as The E Street Band performed
their big chord changes . . .’
Ludovic Hunter-Tilney discusses
Bruce Springsteen with Griselda
Murray Brown at ft.com/springsteen

T H E AT R E

The Threepenny Opera
National Theatre (Olivier), London

aaaae

Ian Shuttleworth

Stamina:
Thom Yorke
of Radiohead
at the
Roundhouse.
Below right:
Rory Kinnear
in ‘The
Threepenny

Opera’
Matthew Baker/Getty
Richard H. Smith

C L A S S I CA L M U S I C

Stravinsky: Myths and Rituals
Royal Festival Hall, London

aaaee

Richard Fairman
Stravinsky sometimes seems the most
cosmopolitan of composers. Multilingual, he lived in Switzerland, France
and the US, yet during the long exile
from his native Russia, his music kept
wanting to re-engage with its roots.
This second concert in the Philharmonia Orchestra’s “Stravinsky: Myths and
Rituals” season focused on very Russian
works that premiered in the 1920s. All
three were intended for the stage and a
bonus was that they came with theatrical presentation. They added up to an
interesting but unsatisfactory evening.
The short and snappy Renard, based
on Russian children’s songs, is little
more than a pantomime. Stravinsky
imagined it performed by clowns, dancers and acrobats. The Philharmonia
gave us the first two and the result was
colourful, lively and a lot better than
just hearing the music.

Unfortunately, the Royal Festival Hall
was several sizes too big for it. The singers sounded too distant and little Renard

Stunning, sombre story of war and chemicals
The Forbidden Zone

Haunting:
Jenny König
as Claire
Haber

Barbican, London

Stephen Cummiskey

THEATRE

aaaaa

Sarah Hemming
Well, this is Katie Mitchell at her very
best. In this stunning, sombre piece of
theatre, the director works with her regular collaborators 59 Productions, interlacing theatre and live video to tell the
neglected story of Clara Immerwahr
and her granddaughter: two unsung
casualties of chemical warfare.
Immerwahr was a chemist married to
Fritz Haber, the German scientist who
worked on the creation of chlorine gas in
the first world war. She committed suicide, shooting herself on the night

Haber hosted a party to celebrate the
deployment of the gas at Ypres.
Three decades later, her granddaughter Claire Haber (hauntingly played by
Jenny König), who was working in Chicago on an antidote to the chemical
weapon phosgene, would also take her
own life, apparently in despair at the
fact that her work had been halted (the
focus was shifting to atomic weapons).
The piece (produced by the Berlin
Schaubühne, performed in English and
German with surtitles) explores these
two stories in short episodes, switching
back and forth and linking them further

by including a nurse whose sweetheart
was gassed at Ypres.
Duncan Macmillan’s script skilfully
uses words by writers such as Mary Borden, Virginia Woolf and Simone de
Beauvoir to voice the thoughts of these
women and the powerlessness they feel
in the face of war.
It is desolate and brilliantly executed.
A life-sized train carriage dominates the
stage, with other locations — a garden, a
laboratory, a public toilet — all just visible in the recesses behind. As the cast
act out the scenes we peer into the train
and the various rooms, piecing together
their stories, while above the stage their
actions are relayed live on a screen,
looking every bit like a period film.

The double perspective — the fact that

we can see camera operators running
about and observe how tricks are done
even as we watch the results — doesn’t
detract from the intensity: if anything, it
increases it. There’s a calmness and
solicitude about it, and a forensic quality that seems to honour the women.
Even when we see Ruth Marie Kröger,
playing Clara, shift so that she can tumble on to something soft, it takes nothing
away from the moment she fires the gun
— in fact it emphasises the effort it takes
to make that protest.
As the train rattles on, empty, at the
end, it is clear this is as much about the
present as the past: an overwhelming
piece about the hideousness of war.
To May 29, barbican.org.uk

TODAY’S TELEVISION
Despite the seasonal title, Russell T.
Davies’s much vaunted pansexual
adaptation of A Midsummer Night’s
Dream (BBC1 8.30pm) visually
resembles a West End Christmas
shop-window display. Davies has
perorated so much about introducing a
youthful public to the real — ie not
sexually clear-cut — world that he’s
forgotten he might as well forgo such

other irrelevancies as blank verse,
fairies and magic. A crackingly vulgar
soundtrack blasts away incessantly;
subplots include a fascistic Duke who
staggers off to die leaving his captive
bride Hippolyta (constant resentful
glares soon grow unintentionally funny)
to plant a lesbian smacker on a
liberating Titania — and inevitably the
mortal lovers’ sexual mix-up includes
moments of man-on-man attraction.

John Hannah as Theseus in
‘A Midsummer Night’s Dream’

None of which would matter if it
didn’t evoke the predictability of a
superannuated enfant terrible.
Matthew Tennyson (Lysander) and Kate
Kennedy (Helena) are promisingly
spirited. Nonso Anozie’s Oberon
provides the most beautifully spoken —
and expressive — language of the
evening. The credits include “Special
effects real sex”. Whatever they mean,
they’re kidding.
In Catch Me If You Can (BBC4 10pm)
Leonardo DiCaprio plays a real-life
Puck, Frank Abnagale Jr, a confidence
trickster who girdled the Earth in

various guises, from doctor to lawyer
to pilot, without benefit of any
magic flower-juice, just help from
Steven Spielberg, Tom Hanks and
Christopher Walken.
Martin Hoyle

seemed overawed by its surroundings.
The same could be said of the comic
one-act opera Mavra. Soprano Natalia
Pavlova and tenor Ilya Selivanov projected strongly over the instrumental
ensemble, but the other pair of singers
were largely lost. Like Renard, Mavra is
inconsequential (“I liked it all, then
‘poop’ it ends too quickly,” was one early
verdict). The Philharmonia provided a
simple staging in 1920s costumes, but all
the fun came from razor-sharp playing
under Esa-Pekka Salonen.
Last of the three was the one masterpiece. Les noces is often seen at the ballet
but there was no dancing here. Instead,
the lights were lowered and the chorus
filed in like priests with candles — an
odd idea, when the Russian wedding
depicted is a raucous affair. Four firstrate pianists (Pierre-Laurent Aimard,
Tamara Stefanovich, Nenad Lecic
and Lorenzo Soules) were on hand.
The soloists from the Mariinsky
Theatre and Philharmonia Voices
were well drilled. A couple of

years ago Thomas Adès conducted an all-Russian knees-up,
where one could imagine the
vodka flowing. Salonen’s
performance was brilliant,
pristine,justatouchsober.

Rory Kinnear’s portrayal of underworld
kingpin Macheath (alias Mack the
Knife) is harder-edged and less sympathetic than his current TV manifestation — and given that he plays Frankenstein’s creature in the Showtime series
Penny Dreadful, that is saying something.
However, this is as it should be. Bertolt
Brecht was less interested in writing
characters we could identify with than
in writing familiar situations. And he
was notoriously concerned to have us
keep our distance and to analyse and
evaluate the arguments in his dramas.
Director Rufus Norris’s revival hits
almost exactly the right note in this
regard. Too often white-faced, leering
figures almost fling Brecht at us; here,
we are limited to enthusiastic use of
kohl, self-parodic use of signage onstage
(Jenny Diver tempted by a tin labelled
“Drugs”; Macheath reading a newspaper headline “Mack does bad things”)
and a delight in cynical delivery. A similar relish is evident in Simon Stephens’
new translation of the play: he may have
been waiting to be this mordant.
Other prominent players include
Nick Holder, Haydn Gwynne and Rosalie Craig as the Peachum family: Craig as

Macheath’s wife and Holder as her
father, a competing godfather. Jamie
Beddard plays the most astute of
Macheath’s lieutenants, largely from a
wheelchair, every expletive ringing
through the Olivier. Each of the cast of
20, with doubling of roles and a strong
ensemble approach, gets their turn in
the spotlight.
The production isn’t flawless: some of
the actors are not note-perfect on
Kurt Weill’s classic score, and the
distancing effect can seem like a
defect, however much you tell yourself it was Brecht’s intention. But
we’re not here to watch an amiable
divertissement. It may be most
famous as a critique of the Weimar
Republic, but this version of Georgian London (adapted from John
Gay’s The Beggar’s Opera) still works
as a salient indictment of 21stcentury society.

southbankcentre.co.uk

To October 1, nationaltheatre.org.uk


★

14


Monday 30 May 2016

Talking Tech

Explore more sports
data analysis and
visualisation in our series
at ft.com/baseline

Robots will
not take over
(just a hunch)

The Baseline
Kohli’s 2016 may be the best yet in Twenty20
In just 27 matches for his country India and IPL side Royal Challengers Bangalore,
Virat Kohli has hit 1,545 runs. He lies second only to RCB teammate Chris Gayle
– whose total last year tops the record list — but Kohli has scored at a much faster
rate

There’s a tech experiment that I long to
do. It’s to set up fake online personas for
a Hitler-worshipper and a Stalin fan,
then wait to see what merchandise the
likes of Facebook and Amazon’s robotic
helpers serve up for their delight.
I actually quite appreciate web
companies’ suggestions, based on my
browsing history, for stuff I might like.
It’s like having a friendly idiot savant

scanning the horizon, with a slightly too
binary version of my preferences, but
nonetheless often hitting the spot.
I am interested in how these robots
work, although I demur at their being
called smart. Surely stupid, able and
willing is more apt and preferable?
Genuinely smart software would be
terrifying.
Yet technologists have promised that
2020 to 2030 will herald The
Singularity, the time when computers
become smarter than humans.
So when the chance came up to meet
Ralf Herbrich, Amazon’s Berlin-based
head of machine learning, I was excited
to hear from one of the world’s most
qualified people whether superhuman,
conscious computers are a likelihood —
and a mortal danger to humanity as
Stephen Hawking, Bill Gates and Elon
Musk among others say.
Amazon doesn’t use only machine
learning to help us buy more stuff. It
offers the intelligence developed by Mr
Herbrich’s team to users of its Web
Services, the part of the empire that,
white-labelled, runs many big websites
including this one — and that Jeff Bezos
expects soon to be bigger than Amazon’s

retail estate.
Those who disapprove of Amazon
may be amused to know that, but for a
twist of history, Mr Herbrich would
likely now be working for the Stasi. A
rebellious, computer-obsessed teenager
in East Germany, he was shunted into a
factory electrician job at 16.
He says the pressure to help out the
secret police with the skills he learnt on
a broken Sinclair ZX81 sent by a relative
in the west may ultimately have been
irresistible — had the wall not come
down six weeks into his apprenticeship.
Since then, he has become a research
fellow at Cambridge and worked in

V Kohli

Cumulative runs in a calendar year

1,000

500

machine learning for Microsoft and
Facebook.
Conveniently, on the office tour, I saw
a real-life machine learning issue. An
automatic translation from Germanlanguage Amazon to English had

changed a USB cable into a “USB rope”.
“There is always a need for human
intervention,” Mr Herbrich observed.
He has no desire or expectation for
bots to take over the world. A phrase he
used was “the sliver of achievability”.
“The Singularity? It didn’t happen,”
he said and went on to explain that it
won’t be happening, either.
“People are really good at seeing,
tasting, smelling, hearing. Machines are
not good at that. We’re just getting to the
point where algorithms can recognise
still images of cats and mice. But the
brain does it much better.”
To my surprise, Mr Herbrich agreed
computers are really glorified adding
machines. “Yes, and the brain is a very
coarse information processing machine.
“Computers can emulate intelligent
behaviour. We’re seeing a lot of that and
it’s impressive that when we put it in the
cloud, we’re able to perform highly
complex tasks.
“But all that’s happening is that they
combine patterns. Machines learn the

Bettmann/Getty

Jonathan Margolis


Forecasts by

15
16

22

19

19

16

17
15

20

18

L

LOW

17
1020

16


19

17

25

27

19

20

18

25

20

17
10

21

17

1010

19
2


20

24

23

30

16

15

7

29
29

Wind speed in MPH at 12 BST
Temperatures max for day˚C

Wind speeds in KPH

Today’s temperatures
Abu Dhabi
Amsterdam
Athens
B’ham
Bangkok
Barcelona
Beijing

Belfast

Sun
Thunder
Sun
Fair
Fair
Sun
Sun
Sun

41 106 Belgrade
Fair
17 63 Berlin
Thunder
30 86 Brussels
Rain
19 66 Budapest
Thunder
34 93 Buenos Aires Cloudy
23 73 Cardiff
Fair
35 95 Chicago
Fair
19 66 Cologne
Thunder

27
27
16

27
15
21
29
19

81
81
61
81
59
70
84
66

Copenhagen
Delhi
Dubai
Dublin
Edinburgh
Frankfurt
Geneva
Glasgow

MONDAY PRIZE CROSSWORD
No. 15,253 Set by FALCON






















































Virat Kohli, 2016

1,500

HIGH

9

Chris Gayle, 2015

CH Gayle


A prize of The Good Word Guide by Martin Manser and How to
Sound Clever by Hubert van den Bergh will be awarded for the
first correct solution opened. Solutions by Wednesday June 8,
marked Monday Prize Crossword 15,253 on the envelope, to the
Financial Times, 1 Southwark Bridge, London SE1 9HL. Solution
on Monday June 13.
............................................................................................................................................
............................................................................................................................................

Sun
Shower
Sun
Sun
Fair
Shower
Shower
Fair

23 73 Hamburg
35 95 Helsinki
39 102 Hong Kong
18 64 Istanbul
18 64 Jersey
19 66 Lisbon
18 64 London
20 68 Los Angeles

Thunder 27
Sun
25

Fair
31
Sun
27
Fair
17
Sun
21
Cloudy
19
Fair
21

ACROSS
1 Sets off and reaches, in the
morning, centre of Cinque
Port (5,1,4)
6Copied notice about gym (4)
9Millais painting of fruit ready
to be eaten (6,4)
10Go round most of French city
(4)
12 Achievement demonstrating
skill of expert oarsman (12)
15 Hints about bodyguards (9)
17 Carnivore later let loose (5)
18 Racecourse out of step, so
modernising (5)
19 Spurns county on occasions
(5,4)

20Ray, pupil staying at a school,
is one who has fun riding on
wheels? (12)
24Boundary taken back by a
military alliance (4)
25Individuals storing extensive
possessions (10)
26Ruin aerial (4)
27Dance waving pretty sash (10)
DOWN
1 Club’s male champion (4)
2 Hold the fort? (4)
3 This may be used to identify
eg Neighbours tune (6,6)
4What movement of timer may
be worth (5)
5 Is over par, surprisingly –
electronic cigarette required
(9)

81
77
88
81
63
70
66
70

Luxembourg

Lyon
Madrid
Manchester
Miami
Milan
Montreal
Moscow
Mumbai
Munich
New York
Nice
Paris
Prague
Reykjavik
Rio
Rome
San Francisco
Stockholm
Strasbourg
Sydney
Tokyo
Toronto
Vancouver
Vienna
Warsaw
Washington
Zurich

Rain
Shower

Fair
Fair
Fair
Thunder
Thunder
Sun
Fair
Shower
Thunder
Sun
Shower
Thunder
Fair
Fair
Sun
Sun
Fair
Rain
Shower
Drizzle
Fair
Sun
Shower
Shower
Rain
Shower

16
20
23

19
31
23
28
25
34
19
24
24
17
22
11
28
23
22
22
19
18
22
29
17
25
29
25
19

7Correspondence with leader of
party prior to moving on (10)
8US lawyer staggering – judge
inside gets black tea (10)

11 Eventually storing weapons
some distance away (2,4,6)
13 Grass-covered ground?
Environmentalists’ department
(10)
14 Envoys, English, fail to see
sign (10)
16 Outgoing type, former scout,
entering IOM races (9)
21 Jar I smashed containing last
of prosecco wine (5)
22Spades on top of pile in game
(4)
23Agent following current game
(1-3)

SOLUTION 15,241
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The winner’s name will be published
in Weekend FT on June 11


61
68
73
66
88
73
82
77
93
66
75
75
63
72
52
82
73
72
72
66
64
72
84
63
77
84
77
66

hard way. They can’t replicate

creativity; recombining higher-level
abstractions and imagining futures
based on very little information or
example. They can’t have a hunch, like
even scientists do. The algorithms
we’re studying today are crude
approximations because they don’t rely
on the same principles as the brain.”
So what about the idea of
superhuman computers taking on a life
of their own? “No. A computer is a tool
and only humans can build computers.
People write programs. A computer
can’t write a program. There will be no
self-propelling computer.”
By happy coincidence, or perhaps
Oxford University Press has been
monitoring my search history, I got
home to find the publisher had sent a
book on artificial intelligence, AI by
Professor Margaret Boden.
I expected this to be another bots-aretaking over manifesto. Instead, it is an
elegant demolition of the notion of the
superhuman computer. “Nearapocalyptic visions of AI’s future are
illusory,” Prof Boden concludes.
Again, how refreshing. It seems the
(sensible) humans are fighting back.

@TheFutureCritic


0
1

10

20

30
Matches played

40

50

Source: FT analysis Graphic by John Burn-Murdoch / @jburnmurdoch

JOHN-BURN MURDOCH

India’s Virat Kohli is having arguably
the greatest year for a batsman in the
history of Twenty20 cricket, amassing 1,545 runs in just 27 games.
At the time of writing, Kohli’s 2016
total lies second in the all-time calendar-year rankings, behind the 1,665
hit last year by Chris Gayle, Kohli’s
teammate at Indian Premier League
team Royal Challengers Bangalore.
But the way in which each has
achieved the feat sheds light on their
markedly different approaches.
While the West Indian Gayle built

his record-setting run over 36
matches at a rate of 46 runs per
innings, Kohli has soared to his current mark at a rate of 57 per innings.

Rather than demonstrating an
aggressive or carefree approach,
Kohli’s figures owe more to his consistency. In 2015 Gayle reached 50
runs on 36 per cent of occasions, but
also lost his wicket for fewer than 10
runs 14 per cent of the time.
This year, Kohli has been rock
steady. In just 11 per cent of his
appearances at the crease has he
been dismissed for fewer than 10 and
he has scored a half-century in 63 per
cent of his innings.
The question now is whether we
are seeing a changing of the guard.
Gayle has four of the top five all-timebest calendar-year performances,
but has been in and out of form in
2016, failing to reach double figures
in 61 per cent of his innings.


★

Monday 30 May 2016

15


Doom loop The UK should look to the
Dutch for pension advice — JONATHAN FORD, PAGE 16

Good innings Apple espouses cricket in
its drive to dominate India — SIMON MUNDY, PAGE 17

Oil companies’ debt soars to $383bn
3 Crude price crash takes toll on industry majors 3 Most borrow to finance investments and dividends
ED CROOKS — NEW YORK

The net debts of the biggest Western oil
companies have surged by a third over
the past year, increasing their vulnerability to another fall in crude prices.
The aggregate net debt of the 15 largest North American and European oil
groups rose to $383bn at the end of
March, up $97bn from 12 months ago,
according to company reports compiled by Bloomberg.
Oil companies’ revenues have
slumped as a result of the crash in crude

prices that began in the summer of
2014. Although they have cut capital
and operating costs sharply, most have
still had to borrow to finance their
investments and dividend payments.
The debt surge was particularly
sharp in the first quarter, when oil
dropped to a low of $27 per barrel.
Although interest rates are near
record lows and oil prices have since

recovered, ending last week at about
$49, the increased indebtedness of the
industry means it will face greater difficulties should oil prices slip back again.

Insurance costs
poised to leap
for Chile’s
salmon farms

That would be likely to mean more
job losses and investment cuts, as well
as possible dividend cuts and more
defensive mergers and acquisitions.
Part of the increase in oil debt over
the past year is accounted for by the
$19bn cash component of Royal Dutch
Shell’s acquisition of BG Group. But all
the large companies have reported
sharp increases in their borrowings.
ExxonMobil’s net debts rose to
$38.3bn at the end of March from
$27.6bn a year earlier, while BP’s rose to
$30.6bn from $24.6bn.

Global salmon supply

The rising debts and lowered expectations for future oil prices have
prompted many credit rating agencies
to downgrade oil companies, with
Exxon last month losing its triple-A

grade from Standard & Poor’s.
Although the rebound in oil prices is
improving companies’ cash flows, and
they are continuing to bear down on
costs, they are still under financial
strain with crude at present levels.
Jason Bloom, director of commodity
research at Invesco PowerShares, said:
“Prices at these levels are a big problem,

Chilean salmon production

3.0%

% change 2015-2016

not just for the smaller exploration and
production companies, but also for the
majors.”
Most of the largest US and European
oil companies have committed to maintaining their payouts, limiting their
ability to invest in future production.
Energy economist Philip Verleger
said: “The big companies that have
been investing in high-cost projects like
Kashagan [in Kazakhstan] or the deep
waters off Brazil are going to be forced
to cut back investments to pay back
their debts and cover their dividends.”


Tonnes (’000)

Chile

Canada

Global

400

-0.2%

-2.1%

300
200

-5.3%

100

The Chilean salmon industry is set to be
snared by rising insurance premiums after
toxic tides from a severe algae bloom devastated fish farms in parts of the country.
Premiums are expected to rise 50-60 per
cent, according to Dagfinn Ulriksen, head of
aquaculture at Aon Norway, which brokers
the bulk of insurance for global fish farmers.
Losses covered by insurance are expected
to be about $100m, the highest on record,

said Mr Ulriksen. On top of that, uninsured
losses could reach another $100m, according
to marine insurance executives.
The jump in insurance costs comes as
salmon companies in Chile, the world’s second-largest producer of the fish, are already
struggling with an expected 20-25 per cent
drop in production this year.
Some 25m fish were killed as a result of the
algae bloom, which started in Chilean waters
at the start of the year.
Prices have surged for Chilean salmon, rising more than two-thirds since the start of
the year to $5.83 a pound, according to
Chile’s SalmonEx, which provides price data.
The decline in Chilean output coincides
with a drop in production by market leader
Norway due to disease. Norwegian salmon
prices also hit a record this year, and are
trading at NKr65 ($7.80) a kilogramme.

2000 02 04 06 08 10 12 14 16

Chilean salmon prices

Wholesale price, dollars per pound

-18.0%

4.5
4.0


FT graphic
Photo Dreamstime
Sources: Rabobank;
SalmonEx

2016
production
estimates
(’000 tonnes)

25m fish
were killed
by the algae
bloom,
which
started in
Chilean
waters

Norway

Chile

UK

Canada

Global

1,209


485

171

132

2,179

“We are not yet over with high prices,” said
Gorjan Nikolik, analyst at Rabobank. “The
second half of the year is when we’re really
going to feel the impact.”
Many producers in Chile were insured but
some eschewed cover due to the already high
premiums. Marine Harvest, the Norwegian
company that is the leading producer in
Chile, said it had been covered. But local
group AquaChile said it was not insured.
While some aquaculture insurers will
increase the premium, “at worst, it could

CLAIRE JONES — FRANKFURT
ANDRES SCHIPANI — BOGOTÁ

3.5
3.0
2012

lead to the withdrawal of capital by some

insurers”, warned Tom Rutter, chief executive at Sunderland Marine, which has not
recorded losses among its clients located in
the unaffected parts of Chile.
The prospect of fewer insurers covering
aquaculture worries global fish officials.
“For the aquaculture industry to grow and
reach its potential, more insurance solutions
have to come to market,” said Audun Lem,
fish specialist at the UN Food and Agriculture Organization.

Lufthansa has cancelled the only route
between Germany and Venezuela,
underlining the worsening conditions
and growing isolation of the South
American country.
The German airline has been flying
from its main hub in Frankfurt to Venezuela’s capital Caracas three times a
week. But in an email sent to its Venezuelan customers on Saturday night,
European time, the company said it
would cancel the route from June 17.
Several other carriers have halted or
reduced their Venezuelan operations,
including Air Canada, American Airlines and Alitalia, in large part because

of the socialist government’s tight currency controls, which left them with billions in unpaid bills.
A near-empty tarmac at the airport
serving Caracas is an increasingly common sight in a country ravaged by a
social, political and economic crisis. The
International Monetary Fund forecasts
the economy will shrink 8 per cent this

year, and 4.5 per cent in 2017. Inflation is
galloping and is forecast to exceed
1,642 per cent next year.
Venezuela is also struggling with food
shortages, looting in parts of the country, and power and water rationing. The
fall in the price of oil, its main export,
has also hit it hard.
Demand on the Lufthansa route has
fallen over the past few years as fewer

Companies

EE......................................................................19
Elliott Advisors............................................1
Ericsson.........................................................19
Flipkart...........................................................17
GE Healthcare...........................................18
Gazprom..........................................................5
General Motors..........................................11
Google..........................................................5,11
HSBC...............................................................19
Halfords........................................................24
Hermès.........................................................24
Hindustan Aeronautics..........................7
Honda.............................................................18
Hoogovens..................................................16
Huawei .........................................................17
Impala Platinum.......................................16
International Monetary Fund ...........9
Intex ...............................................................17

Iveco..................................................................5
James Halstead........................................19
Johnson Matthey....................................24
Karbonn .......................................................17

© The Financial Times Limited 2016

Kimberly-Clark..........................................19
La Poste........................................................19
Lending Club..............................................11
Lenovo...........................................................17
Lidl...................................................................19
Lloyds.............................................................19
Lonmin...........................................................16
Mahindra & Mahindra.............................7
Micromax......................................................17
Mitsubishi Motors...................................18
Mizuho Financial Group......................17
Mylan..............................................................16
Nissan.............................................................18
Olympus........................................................18
Petrobras........................................................5
Pfizer...............................................................16
Porsche.........................................................24
RBS...................................................................19
RIT Capital Partners................................1
Reliance Industries.................................17
Royal Bank of Scotland.......................19
Royal Mail....................................................19


Samsung Electronics.............................17
Scania...............................................................5
Sequoia Capital.........................................17
Sibanye Gold..............................................16
Singapore Post.........................................19
Snapchat .....................................................19
Sofidel............................................................19
SoftBank........................................................17
Suzuki Motor..............................................18
Syncona.........................................................18
Takata.............................................................18
Tata..................................................................16
Telford Homes.........................................24
Tesco...............................................................19
Teva.................................................................16
Tmall................................................................19
Toa...................................................................18
Toshiba..........................................................18
Tredz..............................................................24
Twitter............................................................19
Vimto..............................................................19
Vodafone......................................................19

business travellers visit the country.
“The decision is about the economic
weakness in the country,” the carrier
said. “Like other foreign companies, we
have had problems with transfers of
money outside Venezuela and also with
transfers into US dollars.”

Airlines have had difficulties in repatriating money received from Venezuelan customers in local Bolívar currency
due to exchange controls, prompting
some to only accept US dollars.
Airlines trade group Iata said Venezuela was withholding $3.8bn from airlines generated from ticket sales in the
country. In February, Brazil’s Gol suspended its São Paulo to Caracas service,
leaving the nation increasingly isolated.
Daniel Lansberg-Rodriguez page 9

Volkswagen.......................................5,16,24
Volvo.................................................................5
Wellcome......................................................18
Wheelies.......................................................24
Wm Morrison.............................................19
Woodford Investment Management
18
Xiaomi ...........................................................17

Sectors
Automobiles....................................16,18,24
Banks.........................................................17,19
Financials..................................................6,18
Media..............................................................19
Personal & Household Goods.........18
Pharmaceuticals.......................................16
Retail & Consumer.................................18
Technology...................................17,17,18,19
Telecoms..................................................17,19
Transport........................................................5

People

Allis, Jonathan...........................................18

13

14

15

16

The algae bloom is believed to have been
caused by rising sea temperatures due to the
El Niño weather phenomenon. But a second
“red tide” bloom has hit local fishermen,
who allege that the dumping of dead salmon
into the sea exacerbated the problem.
The prosecutor investigating alleged
dumping has said it could constitute a criminal act, which could carry a jail sentence.
Santiago has offered fishermen a financial
settlement and set up a scientific committee
to analyse the causes of the toxic tides.

Companies / Sectors / People
Accrol..............................................................19
Aldi...................................................................19
Alibaba......................................................17,19
Allergan.........................................................16
Alliance Trust...............................................1
Alphabet........................................................11
Amazon.........................................................19

Anglo American Platinum..................16
Apple...............................................................17
Asda................................................................19
Aston Martin..............................................16
Audi.................................................................24
Bharti Airtel................................................17
Blue Earth Diagnostics........................18
Bolloré Group............................................24
BuzzFeed......................................................19
Corus...............................................................16
DAF....................................................................5
DHL.................................................................19
Daimler.............................................................5
Deutsche Post .........................................19

5.5
5.0

Venezuela faces increasing isolation as
Lufthansa closes down Caracas route

A government-led transparency drive
has accelerated a record surge of
accounting and data fraud scandals
across corporate Japan. The number of
cases hit an all-time high of 58 in the
2015-16 fiscal year, sometimes shining
a light on practices dating back years.
Analysis i PAGE 18


600
500

Norway

EMIKO TERAZONO — LONDON
BENEDICT MANDER — BUENOS AIRES

Investors spooked by
Japanese scandals

Estimates

UK

Begum, Mahroof......................................19
Bolloré, Vincent.......................................24
Cheung, Peter............................................19
Cook, Tim.....................................................17
Crossley, Steve..........................................19
Dumas, Axel...............................................24
Farrar, Jeremy...........................................18
Froneman, Neal........................................16
Griffith, Chris..............................................16
Herbrich, Ralf............................................14
Horta-Osório, António..........................19
Hussain, Jawid..........................................19
Khan, Imran.................................................19
Matsuo, Masaomi....................................18
McEwan, Ross............................................19

Murphy, Martin.........................................18
Palmer , Andy............................................16
Reichman, Marek.....................................16
Sato, Yasuhiro............................................17
Saunders, Brent........................................16
Taneja, Vineet............................................17
Willis, Alexandra.......................................19

Week 22

Life assurers
cut expenses
by £6bn after
rule change
OLIVER RALPH
INSURANCE CORRESPONDENT

The UK’s life assurance industry has
wiped almost £6bn off its annual cost
base thanks to an overhaul to the rules
for paying commissions to financial
advisers introduced three years ago.
According to Cazalet Consulting
research, the changes, known as the
retail distribution review, helped to
push annual expenses down from £11bn
in 2012 to £5.4bn in 2014.
The RDR, which came into force in
2013, banned product providers such as
life assurers from paying commissions

on most product sales to independent
financial advisers. Instead, customers
have to agree fees with advisers upfront.
The latest figures show that the
reforms, designed to improve transparency of advisory fees for customers,
have had a radical impact on both the
advisers and the investment companies
whose products they recommend.
One of the biggest effects has been a
drop in commissions paid by life assurers. Commission paid by the industry
for new policies fell from £2.8bn in 2012
to £692m in 2014, according to Cazalet’s
Life & Platforms report.
“The paying of that commission was
lunacy — they were paying commission
for business that would never make a
profit,” said Ned Cazalet, head of Cazalet
Consulting. He argued that the scale of
commissions paid, together with the
risk that advisers would move their clients’ money around every few years,
meant that many products were unprofitable for the industry.
Mr Cazalet said the changes had “had
a profound impact on the sort of assets
advisers are recommending to clients”.
Sales of unit-linked bonds, a type of
investment product, almost halved
from £6.8bn in 2012 to £3.9bn in 2014,
according to the report.
The big winners from the changes
have been so-called investment platforms that allow customers to hold several different types of investment product on the same system.

According to Mr Cazalet, many advisers have switched from a “taxi driver”
model, in which they were paid for each
product sold, to a model that allows
them to earn recurring income from
keeping client assets on platforms.


★

16

FINANCIAL TIMES

Monday 30 May 2016

COMPANIES
INSIDE BUSINESS

Pharmaceuticals

Teva in dash to complete Allergan deal
Critics say that price of
generics unit is too high in
market under pressure
DAVID CROW AND
JAMES FONTANELLA-KHAN — NEW YORK

Teva, the world’s largest maker of copycat medicines, is racing to complete its
$41bn acquisition of a rival generic
drugmaker, but some shareholders and

healthcare bankers argue the Israeli
company is paying too much.
When Teva struck the cash and stock
deal to buy Allergan’s generics business
last July, investors cheered it as a neat
solution. The Israeli drugmaker, facing
patent expiry on its top-selling drug,
was seen as needing a deal to plug an
impending gap in its sales, and the company spent last year in hostile pursuit of
Mylan, another generics company.

A friendly deal with Allergan, which
wants to exit generics to focus on
branded medicines, seemed ideal. Yet
Teva struck its agreement with Allergan
during different times: a political outcry
over drug pricing has since led to fears of
a crackdown on costs, wiping billions
from the value of pharmaceuticals
stocks. Teva’s own stock has fallen a
quarter since it announced the deal.
Generic competitors such as Endo
have warned that the price of copycat
medicines is under significant pressure,
as buyers demand a better deal and pit
groups with factories in the US, Europe
and Israel against Indian competitors
with much lower manufacturing costs.
Two large shareholders told the
Financial Times they believed Teva had

spent too much on Allergan’s generic
unit. “Teva massively overpaid in the
neighbourhood of 25 per cent,” said one.
“The question is not whether it’s the

right deal, or a good deal — but whether
they paid the right price.”
A third investor said they believed
Teva was doubling down on generic
drugs at exactly the wrong moment, and
should have used its cash to push further into branded medicines that faced
less competition.
“Some people believed it wasn’t the
best deal, that simple generics are not
the right way to go because of Indian
competition,” said one mergers and
acquisitions lawyer.
“They should have concentrated on
sophisticated generics, where they
might have an advantage,” the person
added, referring to medicines that are
hard to make or delivered by injection
rather than an oral pill.
Few people expect Teva to withdraw,
however. The company recently
insisted it was committed to the acquisition, while Brent Saunders, Allergan

‘The question
is not
whether it’s

the right
deal — but
whether they
paid the
right price’

chief executive, has said he expected the
deal to complete next month.
The transaction has been delayed by
the US Federal Trade Commission,
which is examining whether the purchase would harm competition in the
market for generic drugs. Analysts
expect Teva to dispose of some products
to secure clearance.
Supporters of the deal say it will give
Teva clout when negotiating with pharmacies and drug wholesalers, and that
cost-cutting will generate higher profits.
They point out that Teva paid roughly 15
times earnings for Allergan’s generics
unit, in line with other deals struck at
the time.
“Hindsight is 20/20,” said Ronny Gal,
analyst at Bernstein. “Soon after they
did the deal the entire stock market collapsed, but comparing it at this point it’s
hard to argue that they wouldn’t have
got it for a better price.”

Mining. Expansion drive

South Africa gold miner pins hopes on platinum

Sibanye wants acquisitions to
help it become a top-three
producer of the precious metal
ALLAN SECCOMBE

Sibanye Gold, South Africa’s largest gold
miner, is planning to buy more platinum assets as it seeks to turn itself into
one of the world’s top three producers of
the precious metal used in jewellery and
diesel car engines.
The Johannesburg-listed company,
which was spun out of South Africa’s
Gold Fields in 2013, is also looking to
buy another large gold mine in Africa
this year.
In a strategy questioned by some analysts, and in an unusual step for a gold
miner, Sibanye decided in 2014 to diversify into platinum.
During the commodities decline, the
company has been buying platinum
assets that other mining companies no
longer want.
Last year Sibanye agreed to purchase

‘No one is really making
money in the platinum
industry. There is still a
lot of pain in the sector’
Neal Froneman, Sibanye Gold
Dark times: South Africa’s platinum industry has been dogged in recent years by falling prices and rising production costs — Siphiwe Sibeko/Reuters
Anglo American’s lossmaking South

African platinum operations at Rustenburg for an upfront payment of R1.5bn.
It also completed a deal in April to purchase Aquarius, a smaller South African
platinum miner, for $294m.
These two transactions should turn
Sibanye into the world’s fifth-largest
miner of platinum group metals.
But Neal Froneman, chief executive,
said the company planned to make a
third platinum acquisition before the
end of the year, partly to secure greater
influence in the marketing of the precious metal for jewellery and investment purposes.
“Being number five in the platinum
industry is just not enough,” he said in
an interview with the Financial Times.
“You definitely need to be at least
number three to have significant influence. We want a voice at the table, otherwise we can’t set and develop our own
strategy.”
South Africa is the world’s biggest
producer of platinum, but the industry
has been dogged in recent years by
labour unrest, falling prices and rising
production costs.
The three largest producers — Anglo
American Platinum, Impala Platinum
and Lonmin — were hit by a five-month
strike in 2014.
Platinum prices plunged to an eightyear low in January, reflecting factors
including China’s economic slowdown

Digging

deep
Industry
‘has to live
with lower
prices for
longer’

The platinum industry must accept
that prices will be lower for longer,
according to Anglo American.
The platinum price fell to $806 per
ounce in January, its lowest level since
the financial crisis. It has rebounded to
almost $1,000, but is a long way from
its post-crisis high of $1,780 in 2011.
The recent rise in platinum prices is
partly linked to the increasing value of
gold. Both precious metals have been
in demand since the start of this year
due to turbulence in financial markets.
The industry has been battling a
supply glut for years, but Chris Griffith,
chief executive of Anglo American
Platinum, a subsidiary of the mining
group, said the market was “tighter”.
“It feels like we are bottoming out
and we are turning,” he added. “We’ve
been bouncing around the bottom for
a while now. But I don’t think we must
immediately translate that into prices

increasing. The industry has to live
with lower prices for longer.”
Capital expenditure by South African
platinum producers to develop new
mines and extend existing ones has
fallen over the past decade. “It’s not
likely in the next five to 10 years that
we will see huge oversupply again,”
said Mr Griffith. Allan Seccombe

and the negative impact that this is having on the jewellery market.
Prices have rebounded about 20 per
cent since then, but there are concerns
that the Volkswagen emissions scandal
could erode industrial demand for platinum because it is used in catalytic converters for diesel-powered cars.
Like other gold miners, Sibanye is
popular with investors. Its shares have
risen about 100 per cent this year after
the gold price spiked and the company’s
performance benefited from a weaker
rand.
Sibanye’s move into platinum is likely
to face significant scrutiny. The company is aiming to improve its platinum
assets by stripping out costs, but this
could prove difficult at the Rustenburg
mines because they are labour-intensive shafts located deep underground.
Anglo, by contrast, is focusing on shallower platinum deposits, where much of
the mining can be done with machines.
The Rustenburg mines are close to
those that were operated by Aquarius,

and Sibanye is seeking to reduce costs
by removing duplication, flattening
management structures and replacing
contractors with its own employees.
Sibanye has judged it to be a good time
to acquire platinum assets because commodity prices have been low and some
mining companies are eager to offload

their holdings to reduce large debt
loads.
Mr Froneman said it was “very, very
tough” for platinum groups, adding: “No
one is really making money in the platinum industry. There is still a lot of pain
in the sector. It’s beneficial for us to
make our next move and I’m confident
about another transaction.”
The target of Sibanye’s next platinum
deal could be assets owned by Lonmin
or Impala, both of which have smelters.
Buying platinum smelters would enable Sibanye to produce finished metal
and sell it directly to customers, thereby
increasing the company’s influence over
the promotion of the metal for jewellery
and investment purposes.
Under the Aquarius and Rustenberg
deals, Sibanye will confine its role to
producing platinum concentrate from
its mines, which will be passed to Anglo
American Platinum for processing.
One analyst, who declined to be

named, expressed doubts that platinum
producers with smelting facilities would
be willing to consider selling those
assets because there were signs of an
improving market.
Another analyst, who also declined to
be identified, said size alone was not
enough to be an influential player in the
platinum market and it was more
important to be a low-cost producer.

ON MONDAY

Jonathan
Ford

Tata scheme could put
UK’s strained pensions
system in a better place

H

ow to break the pension fund doom loop? The
British government has been criticised for
trying to salvage something from the collapse
of Tata’s UK steel business by suggesting the
Indian group might rewrite some of the pension promises that contributed to its predicament. In particular, it has suggested letting the group “uprate” members’ benefits using a less generous measure of inflation.
That would diminish the deficit by cutting the present
value of the future retirement incomes the scheme has to
pay.

It is easy to see why the idea, floated by the business secretary Sajid Javid, has been greeted with such voluble suspicion. It goes against a central tenet of pension provision
— that employee benefits, once conferred, should not be
amended without consent.
Mr Javid has tried to draw the sting by saying the plan
would be a one-off, applying only to Tata. But here’s the
thing: the proposal, while flawed, contains the germ of
something sensible. Rather than confine the principle to
piecemeal interventions, the government should take it
further. Repurposed, it could help put the country’s overstretched pensions system in a better place.
Pension promises may be contracts just as other financial claims are contracts. Pensions expert John Ralfe likens
the discomfort businesses feel about past undertakings to
the feeling a finance director has about a bond he issued
before interest rates drop. You can’t just annul the claim
because it’s painful, he observes: “If you want to amend it,
then there’s a mechanism you have to go through which is
called insolvency.”
Well, maybe. That’s cerPensions depend
tainly the purist view. But
forcing companies to stand on the continuing
behind promises they canviability of
not afford does not seem
very productive. Indeed, it sponsoring
can contribute to their
businesses
demise, creating a “doom
loop” that sucks up capital
that could otherwise have been invested to secure the
sponsoring business for the longer term.
Tata offers a good example of this in action. Its European
steel business comprises two units that it bought with the

old Corus group in 2007: one in the UK and the other in
Holland (formerly Hoogovens). Both have large pension
funds. Pensions analyst Nick Dunbar has looked at the
impact of national regulations on the funding levels in the
two schemes since the purchase.
In Britain, where benefits cannot be changed other than
through members’ consent or bankruptcy, the Tata
scheme bumped along permanently in deficit, despite
large sums being injected under regulatory duress to try to
close the gap. Hoogovens, meanwhile, was an entirely different story. There, the fund may have faced the same
challenges as its British counterpart: rising life expectancy
and falling interest rates. But although Tata never paid in
more than its normal contributions as an employer, the
scheme’s funding ratio never fell below 100 per cent.
The difference between the two lies in a Dutch law
passed a decade ago. This
allows schemes to suspend
The plan
inflation-linked increases to
members when the value of bumped along in
their assets drops below 112
deficit, despite
per cent of their liabilities.
This has not been without large sums
cost for the Hoogovens’
being injected
scheme members. Since
2007, they have lost out on
six years of inflation increases. But compare that with the
fate awaiting their UK counterparts. Even under Mr Javid’s

scheme they would face significant cuts in benefits.
Meanwhile, freed from permanent pension deficits,
Hoogovens has received more investment than its UK
opposite number, meaning it produces higher quality
products that are less vulnerable to Chinese competition.
So when it came to Tata deciding which plant to keep and
which to cut loose, it was a pretty easy choice.
Pensions are about trust, and when employees forgo salary on the basis of promises, they are entitled to know
those undertakings will not be debased wilfully. But pensions also depend on the continuing viability of sponsoring
businesses. The Dutch approach may not be perfect but
offers an objective mechanism by which the two might be
balanced — offering temporary relief when funds are
under pressure without giving companies licence to dismiss obligations.
Of course, you could just stick to the sanctity of contracts
and do nothing. But the difficulty of the conversation with
members can mean discussions about cutting benefits are
left too late, leaving the price to be paid in business failure,
lost jobs and heavily written down pensions. With ever
more schemes failing, that is a daunting prospect.


Automobiles

Aston Martin ‘hypercar’ already twice oversubscribed after secret showings to wealthy clients
PETER CAMPBELL
MOTOR INDUSTRY CORRESPONDENT

The most expensive road car in British
history is twice oversubscribed weeks
before it will be unveiled by Aston Martin, after a series of secret showings to

wealthy customers in Monaco over the
weekend.
The “hypercar”, developed by Aston
and the Red Bull racing team, will be as
fast as a Formula 1 vehicle and will cost
£2.5m. The group will make about 100
cars initially and has already received

expressions of firm interest from double
that number on the back of its showings
at the weekend. The project has been
codenamed 001, after the marque’s
links with the James Bond franchise.
Aston has already agreed to re-enter
Formula 1 racing after a 55-year absence
through its Red Bull partnership, and
the latest car comes as the company
seeks to put itself on a surer financial
footing.
In spite of its iconic status among
enthusiasts, and a high public profile on
the back of the James Bond franchise,

the group last turned a profit in 2010
and is embarking on a £200m expansion of its production facilities.
Aston initially offered its hypercar to
existing customers who bought either a
£1.2m 177 model or a £1.5m Vulcan,
according to company figures briefed on
its sales plans. It also invited other highprofile customers visiting Monaco for

the Formula 1 at the weekend to view its
latest design in a secret location.
Some of Aston’s most senior directors,
including chief executive Andy Palmer
and chief designer Marek Reichman,

were in Monaco for the showings, it is
understood. The group will formally
begin collecting deposits — which will be
at least £250,000 up front — next
month, and the first handmade models
will roll off the line at its Gaydon headquarters in late 2018.
Aston Martin plans
to re-enter
Formula 1 racing
after a 55-year
absence via its Red
Bull partnership

The unconventional sales process,
which saw the car arrive in Monaco late
at night and be delivered to its secret
showroom in an unmarked truck, is
part of the company’s ambition to pit
itself against Ferrari in the super-luxury
end of the car market, appealing to billionaires and collectors.
Aston is also embarking on a programme to renew the entire line-up of
its popular models.
It has unveiled the DB11, a £140,000
replacement for the DB9, and will also

begin making a crossover, the DBX, at

its new factory in South Wales. The company has promised to introduce at least
two more cars before the end of the decade. It is also re-entering Formula 1 as a
way of promoting its brand in emerging
markets.
Eighty per cent of its cars, all handmade in the UK, are exported, although
the company has previously said it has
significant room to grow in emerging
markets. “Formula 1 offers the ultimate
global stage to build wider awareness of
the Aston Martin brand,” Mr Palmer
said at the time.


★

Monday 30 May 2016

17

FINANCIAL TIMES

COMPANIES

Apple aims to build a big innings in India
US group will face a
test from established
rivals such as
Samsung, Chinese

challengers and
domestic champions

Call waiting

Micromax magic fades
Push upmarket stalls
as consumers defect

SIMON MUNDY — MUMBAI

As the Gujarat Lions cruised to an easy
win over the Kolkata Knight Riders, Tim
Cook stood on the edge of the pitch
expressing his newfound love for Indian
cricket.
“I’m totally hooked . . . It’s so exciting
here,” Apple’s chief executive said, midway through his first visit to the country
last month.
Mr Cook’s cricket outing may have
been a publicity stunt, but he has reason
to seek a better understanding of Indian
culture. The country has become a conspicuous source of growth for Apple,
which said iPhone sales there increased
56 per cent in the first quarter, even as
they fell globally for the first time.
In fact, world smartphone sales as a
whole suffered their first fall in the same
period, according to research by Canalys — but India’s market again stood out,
notching up an overall 12 per cent

increase as millions of people made the
switch from basic feature phones.
Mr Cook’s visit has put the spotlight
on what is “the most important country
in the smartphone market”, according
to a Morgan Stanley report last month,
which predicted that by next year sales
in India would be second only to China,
and with a higher growth rate.
But in some respects India is
more challenging than any other major
market on which Apple has set its sights.
Competition is heating up, with a
growing crowd of Chinese participants
including Lenovo, Xiaomi and Huawei
taking on the established leaders —
South Korea’s Samsung Electronics
and entrenched local brands such as
Micromax.
Per capita income of $1,617 last year,
compared with China’s $7,990, means
the iPhone is beyond the means of the
vast majority of Indians. Analysts put its
national market share at no more than 2
per cent.
“People in rural towns are buying feature phones at Rs500-Rs1,500
($7-$22),” says Navkendar Singh, analyst at IDC, who estimates that smartphones account for fewer than half of
overall mobile phone sales in India
despite rapid growth. “We don’t expect
them to make a big jump and start

spending a lot of money on telecoms.”
About half of Apple’s handset sales in
India in the first quarter were of the
almost-four-year-old iPhone 5s.
The company has been seeking to
broaden its appeal to cost-conscious
consumers by selling used phones, but
the Indian government ruled against
that plan this month after complaints
that it would cannibalise domestic
phone manufacturing.
Mr Cook’s meeting with Narendra
Modi, prime minister, gave him a
chance to lobby for concessions that
would strengthen Apple’s position in
this race.
Anshul Gupta, an analyst at Gartner,
says Apple’s eagerness to distribute lowcost iPhones is logical even if it could
weigh on margins in the short term.
“What matters is the installed base
[using Apple’s operating system] . . . Some of those will later be
upgrading to the high end,” he says.
However, more than 90 per cent of
phone users in India use prepaid SIM
cards instead of long-term contracts,
which prevents operators from offering
the kind of subsidies that have boosted
sales of higher-cost handsets elsewhere.
Mr Cook argues that opportunities
offered by fast 4G networks will boost

iPhone sales. Market leader Bharti Airtel launched the first national 4G network last August, which should be fol-

India has become a conspicuous source of growth for Apple, which said iPhone sales in the country rose 56 per cent in the first quarter — Prashanth Vishwanathan/Bloomberg

India’s mobile market is dominated
by domestic brand feature phones
Sales by vendor (%)
Others

Smartphone sales growth in India is outperforming wider market
Annual % change

Sales (million units, 2015)

Sales by type (%)
100

150
India

Indian

Smartphone

80
100

60
40


Global name
Feature
Chinese

Q1 2016

Global

50

20
Global

0

Q1 2016

1433

2013

14

0
15

India

104


A year ago, Micromax was in talks
with Chinese ecommerce group
Alibaba, which was poised to invest
$700m in the Indian smartphone
maker in exchange for a 20 per
cent stake.
Micromax was riding high, having
overtaken Samsung as leader in the
Indian smartphone market, though
that finding by market research
group Canalys was disputed by the
South Korean group.
The capital infusion from Alibaba
was supposed to improve design
and services that would set the
company apart from competitors.
But the deal fell through, and
Micromax’s fortunes have since
reversed, with steady falls in
market share over the past year.
Founded in 2000 as a software
business, Micromax started making
mobile phones in 2008 and soon
became the leader of a crop of
Indian handset brands, attracting
investment from venture capital
firm Sequoia Capital.
Micromax has focused on the
mid-to-low end of the market,
exploiting Indian consumers’

perception of local brands’ superior
quality to Chinese imports, even as
it kept costs down by using Chinese
contractors and product designs.
More recently it has made efforts
to climb the value chain and
expand abroad: it has set up its
own design team in China, and has
invested in fitness and musicfocused start-ups as part of a drive
to add unique software features to
its handsets.
But this push upmarket has
stalled as Indian consumers have
defected to Chinese brands, largely
at the expense of Micromax,
prompting the exit in March of
Vineet Taneja as chief executive.

FT graphic Sources: Thomson Reuters Datastream; company; IDC

lowed later this year by Reliance Jio — a
$16bn telecoms project from Reliance
Industries, India’s second-biggest listed
company.
“Knowing Reliance, I won’t be surprised if they pick up a few hundred
thousand iPhones and subsidise them
for the marketing impact,” says Jayant
Kolla, co-founder of Convergence Catalyst, a telecoms consultancy.
Apple’s growth in India has come
largely at the expense of Samsung.

According to CyberMedia Research,
Apple’s share of sales in the premium
smartphone segment — with prices
above Rs30,000 — rose to 44 per cent
last year, only 2 percentage points
behind the South Korean group.

Eagerness to distribute
low-cost iPhones has
logic even if it weighs on
margins in the short term
But Samsung remains the clear leader
in India’s overall market, having
stemmed sharp falls in share with its
successful Galaxy J range. With features
seemingly aimed at Indian consumers —
including a special mode for motorbike
users that attracted interest in the
world’s biggest two-wheeler market —
that series also brought improved
design at a lower cost than previous
models.
Samsung has refused to be part of the
widespread discounting of smartphones
on ecommerce sites such as Flipkart.
“Samsung is one of the few that has preserved price discipline,” Mr Singh says.
In contrast, China smartphone makers such as Lenovo, Xiaomi and Huawei
piggybacked on the distribution infrastructure of ecommerce sites as a low-

risk way to enter the India market.

Xiaomi, for example, targeted India for
one of its first forays beyond China, and
has launched its phones in the country
through promotional events with Flipkart, after each of which the companies
have announced that the early stock
was sold out in less than 15 seconds.
Now entrenched as major participants — their share doubled in the year
to March to reach nearly one-quarter,
says IDC — the Chinese groups are seeking to cement their position by investing
in a physical presence, including heavy
branding in third-party retail stores.
The surge of Chinese imports is putting
to the test India’s hopes of developing
globally competitive smartphone
brands, which still account for about
four in 10 phones sold.
Local champion Micromax remained
the second-biggest producer by volume
in the first quarter with 17 per cent market share, according to Canalys, but that
figure has been declining.
Having lost its chief executive in
March, Micromax is bullishly targeting
foreign expansion, particularly in
former Soviet countries. But it has not
done enough to differentiate itself from
other Android-based phonemakers,
says Mr Kolla. He notes that it and other
Indian companies such as Karbonn and
Intex are still largely reliant on Chinese
contractors and suppliers, even as they

shift production to India in response to
higher import duties and rising wages in
China.
Mr Kolla warns that the opportunity
to profit from rapid smartphone adoption in India will not last for ever — for
local brands or international competitors. “This growth won’t continue
beyond 2018,” he says. “The rest of the
market is flat, and India will get there in
a couple of years.”

Trading Directory

Banks

Mizuho plans next phase of consumer lending
LEO LEWIS — TOKYO

Mizuho Financial Group is building a
pot of money for global acquisitions of
financial technology companies as
Japan’s second-biggest bank attempts
to leapfrog its local rivals after years of
industry torpor.
Despite its strong position in consumer
technology, Japan has lagged behind its
global peers in harnessing the so-called
“fintech” wave of digital disruption in
banking.
The country’s lenders, felled by the
bursting of the bubble in the 1990s, have

long lost their appetite for risk and continue to struggle as negative interest
rates erode profits.

In an interview with the Financial
Times, Mizuho’s president Yasuhiro
Sato described plans to build the next
generation of consumer lending on
smartphone services and using “big
data” analysis to manage credit risk.
Further down the line targets include
peer-to-peer lending and investment
“robo-advisers”, he said.
Mizuho is targeting US acquisitions in
the fields of artificial intelligence and
big data processing. “We currently have
several targets . . . some of the deals will
be done this year,” said Mr Sato.
The bank’s advantages, he said,
include its ability to move fast and a
close working relationship with SoftBank, the tech and telecoms group,

which has provided access to fintech
players.
Although Mizuho has not disclosed
the size of its fintech fund, it is expected
to be about $50m-$100m and to expand
significantly later this year.
Mr Sato said fintech-led consumer
lending business could now allow
Mizuho to target younger customers

with less risk as big data generated better credit scoring techniques.
“The smartphone-using generation
doesn’t have much money yet, and as a
bank they don’t represent a lot of profit.
But if you don’t have to open a physical
branch network to do consumer lending
for these people, you can make money
from them,” said Mr Sato.

Trading Directory

Trading Directory
Runs Daily

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★

18

FINANCIAL TIMES

Monday 30 May 2016

COMPANIES
Pharmaceuticals


Syncona £30m investment pays off with first licence
Diagnostics partner wins
US FDA approval for
cancer imaging agent
CLIVE COOKSON — SCIENCE EDITOR

Syncona, the £250m long-term healthcare investment fund set up in 2012 by
Wellcome Trust, Britain’s biggest charity, has achieved its first product
licence.
Blue Earth Diagnostics, in which Syncona invested £30m, has won approval
from the US Food and Drug Administration for its injected imaging agent called
Axumin. This shows up places in the
body where prostate cancer has
recurred after treatment.

Wellcome head
Jeremy Farrar
said Syncona was
an important
symbol of the
trust’s thinking

“Axumin’s approval is a milestone for
us,” said Martin Murphy, Syncona chief
executive. “Our aim as an ‘evergreen’
fund is to create successful standalone
companies that can take their products
all the way to market. We are different
to most investors who only want to

invest for part of the product development cycle and then aim to get their
money out.”
In the case of Axumin, FDA approval
came just two years after the formation
of Blue Earth Diagnostics as a spinout
from GE Healthcare.
The agency gave it a fast-track priority review as a product that satisfied a
significant unmet medical need: pinpointing exactly where cancer has
recurred in men with high PSA (pros-

tate specific antigen) levels in blood
tests.
Syncona has invested so far in eight
companies, Mr Murphy said, both on its
own and alongside other providers of
long-term capital such as Woodford
Investment Management.
Several start-ups are in gene and cell
therapy, where the development cycle is
much longer than in diagnostics and
products might take 10 years to come to
market.
Some result from Wellcome Trust
research and others, like Blue Earth,
have origins elsewhere.
Jeremy Farrar, Wellcome director,
said the aim in setting up Syncona was
to promote the trust’s charitable purpose of accelerating the progress of

developments from lab to market and

eventually to plough profits back into its
research programmes.
Although Syncona represents only a
small fraction of Wellcome’s £18bn
investment portfolio, it is an important
symbol of the trust’s long-term thinking, he added.
Axumin consists of an amino acid,
which is taken up by growing cancer
cells but not by healthy tissues, linked to
radioactive fluorine atom that shows up
when a patient undergoes a PET (positron emission tomography) scan.
“Most cases of prostate cancer can be
treated successfully but about a third of
men suffer a recurrence which can be
very hard to find with conventional
imaging,” said Jonathan Allis, Blue

‘We are
different to
investors
who only
want to
invest for
part of the
product
development
cycle’
Martin Murphy

Earth chief executive. “We scan patients

for 20 to 30 minutes and get a picture
that shows hotspots where cancer has
recurred.”
Radioactive fluorine has a short halflife — just 110 minutes — so it cannot be
distributed from a manufacturing site.
“We expect to make it in about 20 radiopharmaceutical sites across the US,”
said Mr Allis. He declined to give an estimate of likely sales revenue, though
around 60,000 patients a year would
benefit from the product.
Blue Earth, which is based in Oxford,
expects to begin selling Axumin in the
US later this year and follow up with
European approval. The company plans
later to apply the same technology to
track recurrence of other cancers.

Financials. Transparency drive

String of scandals puts Japanese investors on edge
Revelations on Takata, Toa
and Mitsubishi Motors raise
fears that worse is to come
KANA INAGAKI AND LEO LEWIS — TOKYO

From carmakers and electronics groups
to housebuilders and the layers of the
nation’s roads and runways, a government-led transparency drive has accelerated a record surge of accounting and
data fraud scandals across corporate
Japan.
In the five years since a $1.7bn

accounting scandal was uncovered at
Olympus, the number of improper
accounting cases exposed each year in
Japan has nearly doubled. It hit an alltime high of 58 cases in the 2015-16 fiscal
year, according to Tokyo Shoko
Research, which provides data on corporate failures.
In many cases, the revelations have
shone a light on malpractice and subterfuge dating back years — the legacy of
management terrified of failure but left
fighting decades of economic stagnation, squeezed costs and a shrinking
domestic market. But the new flood of
confessions, though welcomed by proponents of better corporate governance
standards, has also produced darker
questions and the fear that there may be
far worse news yet to emerge.

‘Companies can appear
to have governance in
place, but it’s also easy
to fake governance’
“I think it has become clear that the
flow of scandals is far from over, and so
naturally you have investors that are
increasingly concerned about that,”
says Michael Newman, head of corporate advisory at Custom Products
Research. They “will be very eager to
work out where the next problem is
going to arise”.
The problem is that “investors are not
getting a lot of help setting their minds

at ease because the level of forensic
analysis on the sellside in Japan is low”.
He adds that he has research for clients showing how average ages of Japanese boardrooms can help predict the
likelihood of corporate scandal.
The recent scandals have exposed
yawning gaps in the corporate governance reforms introduced exactly a year
ago under the Abenomics programme.
“There is not a single scandal where
the company did not have any risk management structure,” says Haruhiko

Timeline

Named and
shamed:
the groups
in the
spotlight

March 2015: Toyo Tire & Rubber admits
falsifying performance data for
earthquake-resistant rubber products
that were used in 55 buildings in Japan.
The affected number was later expanded
to 154 buildings.
September 2015: Toshiba admits
inflating net profits by $1.3bn
over a seven-year period.
November 2015: Asahi
Kasei Construction
Materials reveals that it

falsified data on how
deep foundation piles
had been sunk into
bedrock in
360 building projects.
November 2015: Airbag maker
Takata admits that it misrepresented
inflator data in response to an allegation
by its biggest client Honda.
April 2016: Mitsubishi Motors admits
overstating fuel economy data on four

types of mini-cars sold in Japan by up to
15 per cent. It later admits that its fuel
economy testing methods had not been
compliant with Japanese standards since
1991.
May 2016: South Korean authorities
accuse Nissan of manipulating
emissions tests for its
Qashqai sport utility
vehicle. Nissan denies
the allegation.
May 2016: Suzuki
Motor reveals that its
fuel economy testing
methods had not
complied with domestic
standards for all 16 of its
models sold in Japan.

May 2016: Toa, a construction
company, admits falsifying quakeresistant data for runway reinforcement
projects at Haneda airport, pictured, and
several other airports in Japan.

Higuchi, a professor at National Police
Academy who has written a book on
mechanisms behind corporate scandals
in Japan. “Companies can appear to
have governance in place, but it’s also
easy to fake governance.”
The rise in revelations is also the
result of increased scrutiny from investors, regulators and companies themselves in the wake of Mr Abe’s reforms,
says Tokyo Shoko Research manager
Kunio Hashimoto.
“There is an increasing awareness
that a single scandal can shake the company to its roots,” Mr Hashimoto says.
That sense of alarm, combined with
growing public pressure, has encouraged Japanese executives — albeit reluctantly — to accept outside supervision
through the instalment of external
directors and an auditing committee.
The fear is also driving large companies
to extend their checks into subsidiaries
and business partners.

Mitsubishi
Motors
admitted last
month that it
had overstated

fuel economy
data on its
vehicles — Tomohiro
Ohsumi/Bloomberg

Nicholas Benes, a corporate governance expert and head of The Board
Director Training Institute of Japan,
says: “There has been a sense in the corporate community that they have to do
things differently. That has now penetrated the general public, and the buzz
in society is creating expectations that
CEOs can really feel.”
The exposure of corporate misconduct has taken various forms.
In November, Takata, the car parts
manufacturer at the centre of an airbag
safety crisis, acknowledged misrepresenting inflator data in response to an
allegation by Honda, its biggest client.
At Toshiba, anonymous tips to Japan’s
securities watchdog revealed a $1.3bn
accounting scandal last year.
Mitsubishi Motors last month admitted that it had overstated fuel economy
data on its vehicles after the discrepancy was pointed out by its partner
Nissan.
A wider regulatory probe has also laid
bare violations in fuel economy testing
by Suzuki Motor.
The latest target of Japanese regulatory scrutiny is Toa, a construction company that has admitted overstating
quake-resistance data for runway reinforcement projects at Haneda and several other airports.
In many of these cases, company
executives have blamed an insular “salaryman” culture where employees have
felt unable to push back against overly

aggressive targets imposed by their
bosses.
Loyalty to the company and fear of
failure have led employees to try to
please the management, even if that has
meant violating the law.
“There was a culture that would not
permit failure,” says Masaomi Matsuo,
Toa’s president.
The flow of scandals is likely to bolster
Mr Abe’s corporate governance campaign, but experts question whether the
proposed monitoring systems are
strong enough to police corporate misbehaviour.
Mitsubishi Motors, for example, had
four external directors, but three of
them were affiliated with the Mitsubishi
group. Toshiba had an audit committee
comprising primarily external directors, but it lacked full independence
because it was headed by the company’s
former chief financial officer.
Despite the greater prevalence of
external directors, many Japanese businesses still resist giving the power of
nominating their chief executives and
deciding remuneration of top managers
to outsiders.
“It’s easy-going for Japanese CEOs,
since they don’t get kicked out by shareholders,” Mr Higuchi says.

Retail


Levy aimed at helping local Polish companies forces foreign groups to cut expansion plans
HENRY FOY — WARSAW

Retailers operating in Poland are cutting expansion plans and squeezing
assets ahead of a tax that could tip
some into unprofitability.
Poland’s retail market, led by foreign
companies such as Jerónimo Martins, Carrefour and Auchan, will pay
about €360m more a year from July.
The tax of up to 1.4 per cent of sales
revenue is designed to target larger, foreign-owned retailers as part of a push by
the rightwing government to promote
domestic businesses and remove “privileges” for overseas investors while funding its expanded programme of social
handouts.
“Nobody wants to operate more
stores any more,” said the chief executive of one of the country’s largest foreign-owned supermarket chains. “Due
to the tax it is all about making existing

stores more efficient and increasing
sales density.”
Analysts and company executives
warn that, with the industry’s average
profit margin of about 2-3 per cent, the
rise could push some retailers into loss
unless they cut their operations or
costs.
Moody’s, the rating agency, said in
February that the tax could wipe out the
operating profit of Tesco and Carrefour’s Polish operations. Analysts say
retailers will be forced to pass on

increased costs to consumers and suppliers to avoid losses.
“Across the board, regardless of their
format, nationality and size, retailers in
Poland work with paper-thin margins,”
said Krzysztof Badowski, head of consumer goods and retail for central and
eastern Europe at PwC, the professional
services company.
“So, take away 1 per cent, 1.5 per cent,

and they will need to find the money
somewhere else.”
Jerónimo Martins of Portugal is
Poland’s largest retailer through its lowcost Biedronka brand, which controls
about 14 per cent of the market with
2,700 outlets. Its Polish revenue of
32.5bn zlotys ($8.2bn) accounted for a

third of the company’s total turnover
last year. Asked how many stores it
planned to open this year, the group said
it would “continue the development of
our chain, but bearing in mind the current economic situation we [have]
decided to focus on raising the effectiveness of the stores already in operation”.

Carrefour is among the groups set to be hit by the tax — John Guillemin/Bloomberg News

Britain’s Tesco and France’s Auchan
each hold about 5 per cent of the market. Poland had the fastest rate of economic growth in the EU over the past
decade, making it a popular destination
for property, banking, retail and healthcare businesses.

The tax, which follows a levy imposed
on bank assets this year, echoes moves
by Hungary’s rightwing government
since 2010, which drew criticism from
the European Commission for unfair
treatment of larger retailers.
Warsaw decided to exempt franchised retail chains from the levy and
set a tax-free allowance to €3.8m in
monthly revenue to help small stores
and family-owned chains, which make
up 40 per cent of the retail market.
But larger chains may seek to exploit
this loophole by paring back expansion
plans for their company-owned stores,
and instead look to establish franchise

operations by signing up small independent retailers under their brand.
Beata Szydło, the prime minister,
said: “The hypermarket tax will give
small commercial enterprises in Poland
a fighting chance to compete on the
market.”
The tax was a “tool, which, if used
right, can give them a chance to compete and stay afloat on the market”.
Zabka, a retail chain owned by Mid
Europa Partners, a private equity house,
is Poland’s largest convenience store
brand but will pay no tax. With more
than 2,600 stores, Zabka operates under
an agency format where the mother

company does not own outlets, which
function as separate legal entities.
“Retailers are definitely slowing down
their expansion plans here,” said Mr
Badowski. “They might look at attempting to change their approach towards a
franchise or agency concept.”


★

Monday 30 May 2016

†

19

FINANCIAL TIMES

COMPANIES
SMALL TALK

Banks

RBS to axe another 450 jobs in services
Cuts come as company
focuses on UK retail and
commercial banking
EMMA DUNKLEY

Royal Bank of Scotland is cutting at least

450 more jobs, taking the total roles
axed at the state-backed lender in the
past few months to more than 2,600 as it
shrinks to focus on UK retail and commercial banking.
About 200 roles have been cut from
the bank’s services team across the
country, which support a number of
divisions. A total of 43 positions will be
moved offshore to India, as a way to recreate similar jobs at a lower cost.
RBS, which is 73 per cent owned by

government, is also removing about 250
roles from its retail bank support team,
including operations and customer
service jobs.
More losses are expected to be
announced in the coming weeks,
according to people familiar with the
situation.
Last month, the bank said it would
close 32 branches and cut 600 jobs, as
footfall continues to decline and more
customers turn to mobile banking.
Rival state-backed lender Lloyds
announced in April that it would close
21 branches and cut more than 600 jobs
as part of a broader three-year restructure announced by chief executive
António Horta-Osório in 2014.
RBS’s role reductions came after the
bank reported its eighth successive net


annual loss in February, taking total
losses to more than £50bn since the
financial crisis.
Ross McEwan, chief executive of RBS,
warned in February that a further
£800m of cost savings would be made in
2016.
This year RBS axed 450 positions in
the investment banking division,
mainly from its back and middle office,
as the unit continues to shrink.
The bank also slashed 550 adviser
jobs, 400 positions from business banking and 200 from its commercial banking division.
At the same time a number of roles
have been established overseas in India
and Poland, amounting to more than
300 in the past few months.
The UK’s largest banks are increas-

A total
of 1,255
positions at
the UK’s
largest banks
have been
moved
offshore
over the
past three

months, says
Unite union

ingly pushing roles offshore. A total of
1,255 positions have been moved offshore over the past three months,
according to figures from Unite, the
union, with many roles established in
India, China and Poland.
In an attempt to reduce costs, HSBC is
cutting 840 IT jobs in the UK and is
planning to establish similar IT jobs in
India, China and Poland by the end of
March 2017.
RBS said: “As RBS becomes a smaller
UK-focused bank, we are restructuring
our support services to better align with
the business we are becoming. These
changes, unfortunately, mean some job
losses. We understand how difficult this
is for our staff and will be offering as
much support as we can, including redeployment to other roles where possible.”

Support services. Digital ventures

Royal Mail puts its stamp on ecommerce world
Postal group embarks on
buying spree, aiming to deliver
growth in a competitive field
MICHAEL POOLER


Gone are the days when Royal Mail simply collected the post, sorted it and put it
through letter boxes.
The UK’s dominant postal operator is
breaking into the digital world with a
string of investments in small ecommerce and technology companies.
The FTSE 100 group has made several
acquisitions since the start of last year,
from a mobile fashion app to a start-up
selling software in China.
While the deals are modest, they illustrate how Royal Mail, privatised in 2013,
is sowing seeds in areas that it hopes will
provide future revenue growth.
Robin Byde, analyst at Cantor Fitzgerald, said: “They’re buying innovative
software and expertise.
“It all speaks to the issue of declining
core mail but is also a response to growing ecommerce flows. They’re positioning themselves in the plumbing space
for the global supply chain.”
With the number of letters sent in

‘It’s about how they can
apply that technology to
their existing businesses’
Robin Byde, Cantor Fitzgerald
decline due to the rise of electronic communications, postal companies that
once enjoyed a monopoly over mail
must find new activities. Many are muscling in on internet retail.
Companies such as Deutsche Post
DHL, La Poste of France and Singapore
Post have bought companies active in
connected areas such as website development, digital marketing and parcel

collection points.
Such moves are, in effect, the reverse
of Amazon’s strategy. Long dominant in
online retail and associated ecommerce
services, the US tech group is siphoning
business from parcel carriers by building an in-house delivery network for
goods bought on its website.
Amazon has compounded the stiff
competition Royal Mail faces in parcels.
Although the UK’s £9bn market is
expanding rapidly as shoppers migrate
online, smaller competitors are pouring
resources into new warehouses, vehicles and automated sorting technology.
Greater parcel volumes failed to offset
fewer letters for Royal Mail last year, as
it posted a one-third drop in full-year
pre-tax profit to £267m this month.
Analysts say Royal Mail’s recent

Timeline

Companies in which postal
operator has invested
Feb 2015 StoreFeeder, a UK provider
of seller integration software that
plugs into eBay for vendors
July 2015 Mallzee, a personal
shopping app for clothing developed
in the UK
Sept 2015 Market Engine Global, an

Australian start-up that helps
businesses manage online
“shopfronts”
Dec 2015 Ecourier, a same-day
delivery company that operates in
London
Dec 2015 NetDespatch, which
provides a shipping, parcel data
management and labelling platform
March 2016 Intersoft, a provider of
delivery management software for
international parcel shipments

investments are aimed at offering more
products and services linked to the sale
and dispatch of online orders.
“They’re trying to bolt on other capabilities that people who send parcels
might also want, so it makes it easier for
them to be a one-stop shop,” says Frank
Proud, of consultancy Apex Insight.
One example is NetDespatch, which
enables mail carriers to provide webbased services such as tracking and
labelling to clients. Retailers can use it to
automate bookings into their chosen
carrier, for example.
Another is StoreFeeder, which built
Royal Mail’s consumer and small business shipping tool, Click and Drop. This
allows eBay sellers to buy and print
postage labels without manually inputting each buyer’s address.
Alex Paterson, analyst at Investec,

says that increasing cross-border or
express deliveries could enable Royal
Mail to drive up yields — meaning
higher revenue per unit. “They want to
develop areas around [parcels] which
will enable them to increase the level of
value-add they provide and the volumes
they attract,” he says.
Royal Mail has gained greater expo-

Media

An employee
sorts deliveries
at Royal Mail’s
Mount Pleasant
Mail Centre in
London
— Carl Court/Getty Images

sure to internet retail sales. In July it
acquired a stake in Mallzee, a personalised shopping app that aggregates items
from more than 100 fashion retailers.
The Chinese consumer market fits
into the group’s ambitions. Through tieups with Alibaba, British brands such as
Brompton, the fold-up bike-maker, are
sold through a Royal Mail online “store
front” on the Chinese ecommerce
group’s Tmall marketplace. Chinese
goods are shipped in the other direction.

Royal Mail also bought a stake in Market Engine, which provides software
allowing businesses to manage online
“shop fronts” translated into local languages. However, its foray into ecommerce may take time to deliver. Royal
Mail did not disclose a value for the
deals and has not made any revenue
forecasts for the ventures.
Mr Byde of Cantor Fitzgerald estimates the new additions could contribute about £100m in sales in two years,
against current turnover of £9.3bn.
“The revenue from these acquisitions
is going to be fairly marginal for some
time. It’s about how they can apply that
technology to their existing businesses
and customer base,” he adds.

Andy
Bounds

Toilet roll maker bucks
trend as Brexit risk
blocks listings pipeline

T

he possibility of Brexit may have bunged up
the pipeline of new issues but Accrol, a maker
of toilet roll and tissues from Blackburn,
intends to buck the trend. It plans to list on
London’s junior market on June 10 and is seeking a valuation of about £120m.
Private equity owner NorthEdge Capital reckons that
whatever happens after the referendum on June 23, it will

not affect the nation’s most traditional habits. Accrol’s
business is entirely domestic, so it does not need to worry
about access to the single market.
The company’s success is a reflection of the rise in discount retailers. It provides own label brands to most of
the retail chains and has about 35 per cent of the discount
market.
Floating on Aim will not just provide a partial exit for
NorthEdge but also the founding family. Each control
46.25 per cent of Accrol. NorthEdge paid £21m for its slice
in July 2014, structured as a loan note. There is about
£20m of debt, which will not be cleared by the flotation
proceeds.
The aim is to raise £60m from selling half the company
— giving NorthEdge investors a nice £9m payday in just
two years.
Accrol was founded by
husband and wife Jawid HusAccrol’s business
sain and Mahroof Begum in
1993. Mr Hussain was made is domestic, so it
redundant by Associated
does not need to
Dairies (which later became
Asda) and used some of the worry about the
redundancy money to found
single market
the business.
His son Majid is chief executive and several others work in the company. They
have recruited Steve Crossley, who has worked for food
businesses Unigate and Northern Foods, as the new chief
executive.

The company has a 35 per cent share of the discount tissue market and 7 per cent of the overall tissue market in
the UK, which is worth about £1.6bn.
The discount market is growing at 10 per cent a year.
Accrol has posted seven years of continuous financial
growth since the 2008 recession and reported revenues of
£101m for the year to April 30 2015.
Pre-tax profit was £5.8m, against £7.6m the year before.
However, that included a £4.5m hit from writing off a loan
to Phoenix Court, a separate company controlled by the
Hussains that owns the company’s offices and factory, as
part of the payment to the family for its stake.
They will remain the property owners. Operating profit
was £10.8m, up from £8.2m.
Accrol is not a household name. Its big competitors
include Kimberly-Clark, owner of the Kleenex and Andrex
brands, and Sofidel, the Italian maker of Nouvelle. About
71 per cent of Accrol’s products are private label, so it
Peter Cheung,
could be vulnerable to a
price squeeze by retailers.
chairman, argues
But Peter Cheung, chairthat not having
man, argues that not having
a brand is an advantage. In a brand is
the year to March 2016 prian advantage
vate label sales were up
almost 6 per cent, he said.
Andrex sales fell by value as it was forced into price cuts.
“Brands rely on product differentiation. That’s hard to do.
The private label is as good, if not better, than the brand,”

he added.
Accrol itself has invested £18m over four years in new
equipment to improve quality and capacity. It now has
contracts with Tesco, Asda and Wm Morrison, three of the
big four supermarkets, as well as Aldi and Lidl.
That should mean that it does not suffer even if customers start trading up from discounters as the economy
grows and people have more money in their pockets.
It is not a stock for those looking to make a fast buck,
although it promises a dividend yield of 6 per cent. Mr Cheung is clear that it will soon require a second factory to
keep up with demand — the 350,000 sq ft site in Blackburn
turns out 17m units a week.
At seven times earnings before interest and nasties, it is
not cheap either. However, it could join those solid Aim
performers such as James Halstead, the Manchester flooring maker, and Vimto, the soft drinks company.
Even if it struggles as the fifth biggest company in a market dominated by multinationals, it should be an attractive takeover target.


Telecoms

Snapchat an enduring hit with its British users Vodafone to introduce mini masts in 4G push
HANNAH KUCHLER — SAN FRANCISCO

Snapchat is growing rapidly in the UK
with almost 10m Brits using the photo
messaging app every day, from salivating over strawberries at Wimbledon to
watching Labour leader Jeremy Corbyn
eating a takeaway.
UK user numbers disclosed for the first
time show that nearly one in three
smartphone owners in the country log

on to the app each month to send disappearing photos to friends and get a
behind-the-scenes look at events.
The Los Angeles-based company,
which announced a $1.8bn fundraising
last week, is expanding internationally,
having opened its first foreign office in
London late last year, poaching staff
from BuzzFeed and Twitter.

Imran Khan, Snapchat’s chief strategy
officer, said the company had appeal
across the world. “It all starts with a
camera. The open camera is an invite to
people to create content, and everybody
likes to take pictures and talk to a real
friend,” he said.
Snapchat believes it is more personal
than other social networks, where people often preen to present a perfect public face to the world.
He added that despite the app’s popularity with teenagers, 70 per cent of
Snapchat users in the UK were over 18.
Snapchat is catching up with Twitter,
which had 13.2m UK users last year, but
is still much smaller than Facebook,
with 32.3m Brits on the platform in
2015, according to data from research
firm eMarketer.

Advertisers in the UK from Burberry
to KFC had already begun to experiment with the app, Mr Khan said.
Snapchat has signed a three-year deal

with the All England Lawn Tennis and
Croquet Club to create stories about
Wimbledon and sell adverts.
Alexandra Willis, who manages digital strategy at Wimbledon, said it was
adopting Snapchat as a way to reach
younger audiences.
“Wimbledon’s core values are it is a
very traditional brand . . . It is not the
kind of thing that naturally appeals to a
younger demographic,” she said.
Tennis players were building their
own stories on the platform, Ms Willis
said. “Serena Williams is absolutely prolific, she has a huge Snapchat following
and is making her own stories daily.”

DANIEL THOMAS
TELECOMS CORRESPONDENT

Vodafone is working with Swedish telecoms equipment maker Ericsson on
rolling out a new design for a mobile
mast that packs into the size of a briefcase to boost coverage in urban areas.
The design has the same capacity and
functionality of a larger cellular site but
is packaged into a small flexible box that
uses less power and costs less to install.
Vodafone lags behind rival EE in rolling out faster mobile speed using 4G
networks, and has attracted considerable criticism over its customer services.
As a result, Vodafone is spending
about £2bn on improving its network
and services across the UK. It aims to

take 4G services to 86 per cent of the UK

population. Vodafone and Ericsson
have installed the first mobile mast site
in Southwark, London, and will test its
performance in the next month before
rolling out the system across the city.
A typical mobile site in London costs
£100,000-£150,000 to build, depending on the location and height of surrounding buildings. Engineers will be
able to carry the equipment to a rooftop
and install the unit without the need for
costly installation equipment, such as a
crane, speeding up the process of
extending Vodafone’s 4G network.
Vodafone has called on the government to help mobile operators access
sites to build and improve cell towers.
Groups are aiming to meet state targets
of having at least voice call coverage for
90 per cent of the UK.

Mobile operators are often frustrated
by the high rents charged by landowners. The government is consulting on
proposals that would make it easier and
cheaper for mobile groups to gain access
to sites for masts.
The mini base stations being trialled
by Vodafone are equipped with 4G
mobile technology to give a faster and
more reliable mobile connection. The
system is about half the size and weight

of a standard radio unit, but offers three
times the capacity for mobile calls.
Vodafone and Ericsson are also working on a way to combine mobile spectrum bands to provide higher speeds.
Download speeds of up to 240Mb were
achieved in recent trials, with test sites
expected to deliver download speeds of
up to 700Mb in future.


20

★

FINANCIAL TIMES

Monday 30 May 2016


★

Monday 30 May 2016

21

FINANCIAL TIMES

MARKET DATA
WORLD MARKETS AT A GLANCE

FT.COM/MARKETSDATA


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

Nasdaq Composite

-0.02%

Dow Jones Ind

0.65%

FTSE 100

0.25%

FTSE Eurofirst 300

0.08%

Nikkei

0.24%

Hang Seng

0.37%

FTSE All World $


0.88%

0.27%

$ per €

$ per £

-0.536%

-0.409%

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

Apr 28 - May 26
S&P 500

All World

New York

2,095.15

Index

Apr 28 - May 27
S&P/TSX COMP


All World

2,090.10
13,887.66

Day -0.02%

Month -0.07%

Year -0.72%

Day 0.40%

New York

IPC

Nasdaq Composite

Month 1.57%

Month 0.93%

Year -1.97%

Dow Jones Industrial

17,873.22


Day 0.08%

Month 0.40%

Year 3.88%

Bovespa

All World

Month -0.87%

6,270.79

10,299.83

FTSE Eurofirst 300

Month 0.04%

Year -15.50%

CAC 40

4,514.74

Month -0.65%
Index

Year -0.93%

Latest

Day -0.87%

Latest

Previous

Month -0.41%

Country

Index

Year -11.19%
19939.37
31965.98
18216.92
4356.87
16772.46
1095.68
1342.87
2104.98
3871.74
5322.62
631.03
515.74
1493.19
1631.09
46039.69

9727.01
449.09
689.34
6947.88
28260.61
676.66
36694.26

12713.75
5451.90
5388.10
2727.30
2272.70
3516.08
5947.48
49482.86
821.38
14049.20
509.29
19507.10
7861.57
9034.15
2954.21
335.49
2822.38
1892.32
1038.14
1306.65
1716.02


Index

Day 0.05%

FTSE Italia All-Share
19923.89
CSE M&P Gen
67.45
67.89
Italy
FTSE Italia Mid Cap
32125.05
PX
890.47
891.30
OMXC Copenahgen 20
996.75
996.24
FTSE MIB
18186.14
EGX 30
7531.15
7543.43
Japan
2nd Section
4348.83
OMX Tallinn
997.80
994.05
Nikkei 225

16834.84
Austria
OMX Helsinki General
8012.07
7989.76
S&P Topix 150
1100.67
Belgium
CAC 40
4514.74
4512.64
Topix
1349.93
SBF 120
3571.76
3574.10
Jordan
Amman SE
2107.57
Brazil
Germany
M-DAX
20811.14
20743.90
Kenya
NSE 20
3867.50
Canada
TecDAX
1690.29

1690.18
Kuwait
KSX Market Index
5368.25
XETRA Dax
10286.31
10272.71
Latvia
OMX Riga
639.11
Chile
Greece
Athens Gen
636.83
645.40
Lithuania
OMX Vilnius
517.15
China
FTSE/ASE 20
176.75
180.74
Luxembourg
LuxX
1472.21
Hong Kong
Hang Seng
20576.77
20397.11
Malaysia

FTSE Bursa KLCI
1637.19
HS China Enterprise
8595.28
8526.19
Mexico
IPC
46124.15
HSCC Red Chip
3565.78
3554.22
Morocco
MASI
9745.69
Hungary
Bux
27011.72
26656.81
Netherlands
AEX
450.94
India
BSE Sensex
26653.60
26366.68
AEX All Share
691.54
S&P CNX 500
6627.95
6634.30

New Zealand
NZX 50
6992.55
Colombia
Indonesia
Jakarta Comp
4814.73
4784.57
Nigeria
SE All Share
28877.47
Croatia
Ireland
ISEQ Overall
6503.74
6454.48
Norway
Oslo All Share
672.10
Israel
Tel Aviv 100
12.41
12.50
Pakistan
KSE 100
36694.26
(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.
12727.46
5469.70
5405.90

2721.60
2263.51
3523.47
5988.13
49051.49
824.87
14105.23
511.74
19470.79
7856.95
9080.73
2952.78
336.30
2821.05
1890.28
1046.35
1302.13
1721.49

Country

Month -9.96%

Previous

Merval
All Ordinaries
S&P/ASX 200
S&P/ASX 200 Res
ATX

BEL 20
BEL Mid
Bovespa
S&P/TSX 60
S&P/TSX Comp
S&P/TSX Met & Min
IGPA Gen
FTSE A200
FTSE B35
Shanghai A
Shanghai B
Shanghai Comp
Shenzhen A
Shenzhen B
COLCAP
CROBEX

Previous

49,051.49
Year -9.56%

Latest

Argentina
Australia

All World

Frankfurt


Month -0.13%

Year -12.61%

Ibex 35

Cyprus
Czech Republic
Denmark
Egypt
Estonia
Finland
France

Gold $

-0.62%

0.41%

Index

All World

17,572.49

Day 0.37%

Madrid


Month -1.89%

Year -18.98%

FTSE MIB

Hang Seng

Country

Month -3.01%
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

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

Year -23.78%
Latest

Previous

7411.68
46634.55

4961.16
2528.56
6472.80
1927.58
917.52
6482.48
2802.51
318.44
706.36
54105.37
31679.83
48069.78
1969.17
241.85
9107.30
6571.21
1376.50
489.19
8292.45

Hong Kong

Month -3.88%

USA

Venezuela
Vietnam

Year -8.13%


FTSE Straits Times

Singapore
2,802.51

Year -27.16%

Day 1.05%

Shanghai

Month -3.18%

Year -19.00%

BSE Sensex

Mumbai
26,653.60

25,603.10

Day -0.05%
Taiwan
Thailand
Turkey
UAE
UK


Month -2.50%

20,576.77

Shanghai Composite

7376.38
46695.37
4964.17
2531.74
6441.01
1914.31
918.79
6516.49
2773.31
319.39
703.66
53921.00
31952.76
47835.75
1957.06
240.58
9079.20
6568.76
1376.15
488.49
8229.55

1,969.17


Day 0.62%

2,945.59

Country

Seoul

2,874.72

Day 0.88%

Milan

All World

2,000.93

Year -17.63%

21,361.60

18,976.71

Day -0.17%

Month -2.99%

Index


Apr 28 - May 27
Kospi

Tokyo

2,821.05
Year -42.56%

Month -4.85%
Index

Latest

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

Wilshire 5000
IBC
VNI

Day 1.09%

Previous

8463.61
1412.67
78035.63
4283.49
2868.20
6270.79
5671.22
3448.45
3810.78
6254.02
17873.22
7772.28
656.28
4512.54
4933.50
10469.52
2090.10
21224.32
15350.84
608.11

Country


8394.12
1401.64
78609.06
4288.61
2861.30
6265.65
5664.30
3444.78
3813.82
6232.86
17828.29
7722.69
655.29
4487.96
4901.77
10439.61
2090.54
21238.05
15314.16
604.34

Month 2.49%
Index

Cross-Border

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)

Year -3.19%
Latest

Previous

236.80
3078.48
886.50
5331.28
266.16

1372.90
2701.20
1313.02
1535.46
2432.00
1500.02
472.49
3868.91
4175.57
401.81
1672.12
1364.09
2219.94
1393.80
1410.20
1853.14
2933.05

236.26
3071.21
886.62
5316.61
265.44
1369.59
2692.98
1310.49
1522.17
2445.90
1497.81
471.37

3862.80
4168.56
400.95
1668.87
1359.39
2207.56
1392.10
1406.45
1850.19
2922.21

UK MARKET WINNERS AND LOSERS

LONDON
ACTIVE STOCKS

stock
traded m's
Apple
36.4
Coca-cola Enterprises
31.5
Baxalta orporated
19.6
Facebook Class A
16.1
Amazon.com
16.0
Alphabet Class C Capital Stock
14.5

Alphabet Class A Common Stock
13.0
Hospira
11.8
Baidu
10.4
Netflix
9.4

close
price
100.35
51.55
45.53
119.38
712.24
732.66
747.60
89.95
185.01
103.30

Day's
change
-0.06
0.69
-0.17
-0.09
-2.67
8.54

10.67
-0.01
7.34
0.49

BIGGEST MOVERS
Ups
Ulta Salon Cosmetics & Fragrance
Hewlett Packard Enterprise
Jd.com
Baidu
Viacom Class B

Close
price

Day's
change

Day's
chng%

233.15
18.26
24.25
185.01
44.24

19.46
0.87

1.08
7.34
1.71

9.11
5.00
4.66
4.13
4.02

Ups
Paypoint
Synthomer
Softcat
B&m Eur Value Retail S.a.
Phoenix Holdings

Downs
Cf Industries Holding
Check Point Software Ltd
Marathon Oil
Freeport-mcmoran
The Mosaic

27.70
83.60
12.90
11.14
25.69


-1.26
-2.21
-0.27
-0.20
-0.44

-4.35
-2.58
-2.05
-1.76
-1.68

Downs
Acacia Mining
Centamin
Sophos
Clarkson
Anglo American

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

No change

0.164%

Apr 28 - May 27
Nikkei 225

9,107.30


Day 0.31%

STOCK MARKET: BIGGEST MOVERS
AMERICA
ACTIVE STOCKS

Oil Brent $ Sep

16,834.84

9,269.00

Paris

4,557.36

Index

10,286.31

Day 0.13%

Europe
1,372.90

São Paulo

54,477.78

London


Apr 28 - May 27
Xetra Dax

Year -10.93%

1,373.23

Day 0.24%

£ per €

ASIA
Index

18,186.14

Day 0.25%
Country

46,124.15

Day 0.18%

New York

17,830.76

6,319.91


Mexico City

45,528.93

Day 0.65%

14,105.23

Year -6.65%

4,933.50
4,805.29

Toronto

Apr 28 - May 27
FTSE 100

¥ per $

Vodafone
Astrazeneca
Bp
Lloyds Banking
Shire
Reckitt Benckiser
Rio Tinto
Hsbc Holdings
Royal Dutch Shell
Royal Dutch Shell


stock
traded m's
111.6
103.8
96.7
96.7
95.8
92.5
84.0
78.9
78.3
76.6

close
price
232.60
4022.50
361.95
72.45
4289.00
6873.00
1964.00
448.45
1675.00
1680.50

Day's
change
0.55

11.00
-2.50
-0.36
-60.00
-10.00
-5.00
2.50
-7.50
-12.50

Close
price

Day's
change

Day's
chng%

960.00
362.80
346.50
304.90
881.00

53.50
18.60
17.00
14.20
31.50


5.90
5.40
5.16
4.88
3.71

309.90
95.55
218.00
2320.00
612.00

-14.80
-4.45
-7.20
-68.00
-17.20

-4.56
-4.45
-3.20
-2.85
-2.73

BIGGEST MOVERS

Based on the constituents of the FTSE 350 index

EURO MARKETS

ACTIVE STOCKS

TOKYO
ACTIVE STOCKS

stock
traded m's
776.5
306.1
296.9
286.0
262.4
240.5
226.4
219.2
209.3
192.7

close
price
238.34
85.65
71.80
67.19
9.53
4.40
43.90
97.70
49.77
60.89


Day's
change
9.23
0.00
0.00
0.00
-0.03
0.04
-0.13
0.00
-0.24
0.00

stock
close
traded m's
price
Toshiba
377.3
266.30
Toyota Motor
371.9 5589.00
Softbank .
256.3 6053.00
Mitsubishi Ufj Fin,.
254.2
542.70
Sony
184.6 3078.00

Sumitomo Mitsui Fin,.
163.0 3504.00
Fuji Heavy Industries
163.0 3971.00
Kddi
159.0 3174.00
Mizuho Fin,.
153.2
171.30
Fast Retailing Co.,
133.8 29000.00

Day's
change
26.30
-7.00
78.00
7.60
6.00
51.00
8.00
7.00
1.90
-400.00

Day's
change

Day's
chng%


BIGGEST MOVERS

Ups
Deutsche Wohnen Ag
Roche Gs
Rwe Ag
Vestas Wind Systems A/s
Pandora A/s

Close
price
28.23
238.34
8.83
64.01
130.53

1.12
9.23
0.24
1.53
3.02

4.15
4.03
2.81
2.45
2.37


Downs
Grifols Sa
Ses
B.popular
Natixis
Bayerische Motoren Werke Ag

14.99
19.94
1.59
4.46
64.40

-14.40
-2.29
-0.14
-0.29
-4.15

-48.99
-10.28
-8.20
-6.14
-6.05

Roche Gs
Bayer Ag Na
Novartis N
Nestle N
Telefonica

Santander
Total
Siemens Ag Na
Bnp Paribas Act.a
Daimler Ag Na O.n.
BIGGEST MOVERS

Based on the constituents of the FTSEurofirst 300 Eurozone index

Ups
Toshiba
Konami
Alps Electric Co.,
Sharp
West Japan Railway

Close
price

Day's
change

Day's
chng%

266.30
4170.00
2108.00
147.00
6772.00


26.30
240.00
87.00
6.00
257.00

10.96
6.11
4.30
4.26
3.94

Downs
Mitsui Eng & Shipbuilding Co.,
Hitachi Construction Machinery Co.,
Yamato Holdings Co.,
Tosoh
Mitsubishi Motors

173.00
1661.00
2214.50
518.00
563.00

-6.00
-50.00
-63.00
-14.00

-13.00

-3.35
-2.92
-2.77
-2.63
-2.26

Based on the constituents of the Nikkei 225 index

FTSE 100
Winners
3i
Royal Bank Of Scotland
Royal Mail
Hargreaves Lansdown
Legal & General
Intu Properties
Schroders
Barclays
Easyjet
Int Consolidated Airlines S.a.
Old Mutual
London Stock Exchange

May 27
price(p)

%Chg
week


%Chg
ytd

552.00
251.20
532.50
1346.00
240.00
304.70
2736.00
186.20
1552.00
544.00
178.00
2724.00

9.2
8.4
8.3
6.6
6.5
6.4
6.3
5.9
5.6
5.3
4.9
4.8


Losers
Marks And Spencer
Fresnillo
Randgold Resources Ld
Rolls-royce Holdings
Intertek
Dcc
Coca-cola Hbc Ag
Carnival
Inmarsat
Whitbread
Gkn
Royal Dutch Shell

386.60
1017.00
5735.00
615.00
3150.00
6260.00
1326.00
3446.00
748.50
4249.00
273.40
1680.50

-13.1
-5.8
-4.9

-4.4
-4.3
-3.5
-2.9
-2.5
-0.9
-0.7
-0.7
-0.5

May 27
price(p)

%Chg
week

%Chg
ytd

13.8
18.0
-5.0
4.2
1.9
35.4
7.1
11.2
-12.4
35.3
-20.4

33.8

FTSE SmallCap
Winners
Gulf Marine Services
De La Rue
Cambian
Fdm (holdings)
Mothercare
Uk Mail
Georgia Healthcare
Sportech
Stobart Ld
Jpmorgan Mid Capital Investment Trust
Nanoco
Topps Tiles

55.25
566.50
61.00
637.00
136.00
320.00
252.00
79.00
125.50
1029.00
44.75
139.50


24.2
16.6
11.4
9.9
9.9
9.6
8.6
8.6
8.0
7.5
7.2
6.9

-46.7
27.8
-56.4
21.9
-38.2
28.0
62.6
32.8
17.3
-5.9
-22.2
-11.7

May 27
Industry Sectors
price(p)
Winners

Industrial Transportation
2980.07
Life Insurance
7134.56
Banks
3379.62
Technology Hardware & Equip. 1209.59
General Financial
9021.03
Gas Water & Multiutilities
6188.83
Health Care Equip.& Services 7197.50
Food & Drug Retailers
2743.70
Construction & Materials
5322.71
Personal Goods
27182.65
Fixed Line Telecommunication 5136.27
Support Services
6869.87

48.4
72.2
25.9
-11.9
-8.5
43.8
-11.4
-18.5

-3.3
-16.8
-6.3
-80.9

Losers
Hostelworld
Hochschild Mining
Game Digital
Trinity Mirror
Hss Hire
Puretech Health
Charles Taylor
Vitec (the)
Wireless
Johnston Press
Soco Int
Liontrust Asset Management

180.00
138.75
84.00
118.25
99.00
120.00
260.00
502.25
170.50
36.25
124.00

272.00

-32.3
-8.3
-7.7
-5.8
-5.7
-5.5
-5.5
-5.3
-5.3
-4.6
-4.2
-4.2

-17.4
187.6
-30.6
-28.8
37.5
-26.4
0.0
-16.6
-30.4
-28.0
-15.8
-2.7

Losers
Industrial Metals

1147.38
Oil Equipment & Services
13084.77
Aerospace & Defense
3998.39
Automobiles & Parts
6392.27
Oil & Gas Producers
6160.84
General Retailers
2810.25
Industrial Engineering
8189.53
Chemicals
10862.40
Food Producers
8246.61
Electricity
9044.90
Mining
8916.80
Equity Investment Instruments 7376.22

May 27
price(p)

%Chg
week

%Chg

ytd

14.6
-16.8
19.9
-10.6
-10.4
-4.0
-8.1
-14.9
-10.8
-10.9
-0.5
-0.7

FTSE 250
Winners
Serco
Homeserve
Aldermore
Paypoint
Softcat
Nmc Health
B&m Eur Value Retail S.a.
Paysafe
Pendragon
Bgeo
Ip
Zoopla Property


107.50
488.00
220.00
960.00
346.50
1138.00
304.90
413.40
40.96
2577.00
163.10
320.50

18.3
16.7
12.0
11.6
10.0
8.9
8.6
8.5
7.7
7.4
7.4
7.2

-14.5
43.6
38.4
7.0

13.4
10.6
-8.4
-10.9
-34.2
-3.5
-11.3
8.9

Losers
Centamin
Acacia Mining
Cairn Energy
Paragon Of Companies
Ibstock
Tullow Oil
hcape
Dairy Crest
Hikma Pharmaceuticals
Sophos
Britvic
Melrose Industries

95.55
309.90
198.50
311.60
203.20
238.20
695.50

554.00
2225.00
218.00
682.00
380.30

-14.8
-7.0
-4.9
-4.4
-4.1
-3.6
-3.5
-3.4
-3.1
-3.1
-2.8
-2.6

%Chg
week

%Chg
ytd

6.1
4.6
4.3
4.0
3.7

2.4
2.3
2.1
2.1
2.1
1.9
1.9

14.5
-8.9
-11.6
-5.2
-4.7
4.1
-0.9
9.6
2.9
5.1
-3.5
0.9

-2.6
-1.7
-1.0
-0.8
-0.3
0.2
0.2
0.5
0.7

0.7
1.0
1.0

58.1
0.4
-3.6
-11.5
8.8
-6.5
14.3
0.9
-7.0
2.6
21.2
-1.3

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

CURRENCIES
May 27
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
14.0150

1.3908
0.3770
6.8900
3.6155
1.3033
687.0450
6.5597
3068.0000
536.0000
24.2766
6.6807
8.8761
7.7662
282.9448
67.0375

Day's
Change
-0.1300
0.0054
0.0000
0.0050
0.0320
0.0052
-0.0600
-0.0015
9.9650
-1.0400
0.1132
0.0317

0.0192
-0.0003
1.9175
-0.1075

EURO
Closing
Mid
15.6008
1.5482
0.4197
7.6696
4.0246
1.4507
764.7855
7.3019
3415.1501
596.6494
27.0235
7.4366
9.8804
8.6449
314.9605
74.6229

POUND
Day's
Closing
Day's
Change

Mid
Change
-0.2197
20.4859
-0.2774
-0.0013
2.0330
-0.0007
-0.0021
0.5511
-0.0024
-0.0310
10.0712
-0.0352
0.0166
5.2848
0.0246
-0.0012
1.9050
-0.0005
-3.7110 1004.2610
-4.3336
-0.0365
9.5884
-0.0427
-5.1267 4484.5282
-4.3321
-4.0060 783.4768
-4.8388
-0.0021

35.4854
0.0161
0.0000
9.7652
0.0052
-0.0256
12.9743
-0.0267
-0.0415
11.3519
-0.0484
0.6439 413.5834
1.0662
-0.4758
97.9894
-0.5721

May 27
Indonesia
Israel
Japan
..One Month
..Three Month
..One Year
Kenya
Kuwait
Malaysia
Mexico
New Zealand
Nigeria

Norway
Pakistan
Peru
Philippines

Currency
Indonesian Rupiah
Israeli Shekel
Japanese Yen

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

DOLLAR
Closing
Day's
Mid
Change
13583.0000
-20.5000
3.8430
0.0091

109.8550
0.1800
109.8549
0.1798
109.8547
0.1793
109.8533
0.1765
100.6500
-0.0500
0.3023
0.0001
4.0800
-0.0015
18.4664
-0.0028
1.4894
0.0071
199.0800
0.0300
8.3356
0.0504
104.8050
0.0100
3.3555
0.0150
46.6325
-0.0475

EURO

POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
15119.9465 -94.9872 19854.4273
-114.0225
4.2778
-0.0102
5.6174
-0.0104
122.2853
-0.3813 160.5762
-0.4146
122.2853
-0.3813 160.5761
-0.4149
122.2853
-0.3813 160.5758
-0.4154
122.2852
-0.3816 160.5761
-0.4167
112.0387
-0.5897 147.1212
-0.6954

0.3365
-0.0015
0.4418
-0.0017
4.5417
-0.0233
5.9638
-0.0274
20.5559
-0.1010
26.9925
-0.1181
1.6580
0.0000
2.1771
0.0012
221.6063
-1.0223 290.9973
-1.1862
9.2787
0.0122
12.1842
0.0225
116.6639
-0.5447 153.1946
-0.6330
3.7352
-0.0010
4.9048
0.0014

51.9091
-0.3005
68.1632
-0.3579

May 27
Currency
Poland
Polish Zloty
Romania
Romanian Leu
Russia
Russian Ruble
Saudi Arabia
Saudi Riyal
Singapore
Singapore Dollar
South African Rand
South Africa
South Korea
South Korean Won
Sweden
Swedish Krona
Switzerland
Swiss Franc
Taiwan
New Taiwan Dollar
Thailand
Thai Baht
Tunisia

Tunisian Dinar
Turkey
Turkish Lira
United Arab Emirates
UAE Dirham
United Kingdom
Pound Sterling
..One Month

DOLLAR
Closing
Mid
3.9429
4.0473
66.3657
3.7504
1.3758
15.6555
1179.1500
8.3365
0.9928
32.5085
35.6455
2.0991
2.9525
3.6729
0.6841
0.6842

Day's

Change
0.0007
0.0171
0.6181
0.0011
0.0295
-1.2000
0.0476
0.0030
-0.0565
0.0355
0.0102
0.0159
0.0000
0.0029
0.0029

EURO
Closing
Mid
4.3890
4.5053
73.8750
4.1747
1.5314
17.4269
1312.5732
9.2798
1.1051
36.1869

39.6789
2.3366
3.2865
4.0886
0.7615
0.7615

POUND
Day's
Closing
Day's
Change
Mid
Change
-0.0202
5.7633
-0.0234
-0.0023
5.9160
0.0002
0.3394
97.0074
0.4973
-0.0199
5.4819
-0.0232
-0.0061
2.0109
-0.0069
-0.0500

22.8838
-0.0534
-7.5960 1723.5760
-9.0479
0.0090
12.1855
0.0184
-0.0019
1.4512
-0.0017
-0.2356
47.5180
-0.2838
-0.1493
52.1034
-0.1682
0.0002
3.0682
0.0019
0.0021
4.3156
0.0051
-0.0194
5.3688
-0.0226
-0.0004
-0.0004
-

May 27

..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
0.6842
0.6847
9.9850
22393.0000
0.8984
0.8982

0.8980
0.8967

Day's
Change
0.0029
0.0029
0.0050
14.0000
0.0043
0.0043
0.0043
0.0043

EURO
POUND
Closing
Day's
Closing
Day's
Mid
Change
Mid
Change
0.7613
-0.0004
0.7607
-0.0004
1.1132
-0.0053

1.4617
-0.0062
1.1130
-0.3547
1.4617
-0.0062
1.1128
-0.3547
1.4618
-0.0062
1.1115
-0.3547
1.4623
-0.0062
11.1148
-0.0474
14.5952
-0.0544
24926.8397 -103.1337 32732.1528
-117.8475
1.3131
0.0007
1.3131
0.0007
1.3129
0.0007
1.3123
0.0007

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


UK SERIES

FTSE ACTUARIES SHARE INDICES

www.ft.com/equities

Produced in conjunction with the Institute and Faculty of Actuaries

£ Strlg Day's
Euro
£ Strlg
£ Strlg
Year
Div
P/E
May 27 chge%
Index
May 26
May 25
ago yield% Cover
ratio
FTSE 100 (100)
6270.79
0.08 6423.35 6265.65 6262.85 7040.92 3.98 0.71 35.18
FTSE 250 (250)
17232.26
0.23 17651.50 17192.83 17232.64 18237.00 2.66 2.10 17.90
FTSE 250 ex Inv Co (208)
18743.30

0.23 19199.29 18700.12 18739.04 19854.83 2.67 2.24 16.69
FTSE 350 (350)
3500.46
0.11 3585.62 3496.70 3496.80 3890.51 3.76 0.88 30.16
FTSE 350 ex Investment Trusts (308) 3477.18
0.10 3561.77 3473.54 3473.32 3869.33 3.78 0.88 30.10
FTSE 350 Higher Yield (105)
3197.95
0.05 3275.75 3196.22 3193.22 3680.84 5.27 0.45 42.49
FTSE 350 Lower Yield (245)
3472.68
0.16 3557.17 3466.97 3470.68 3720.39 2.13 2.04 22.99
FTSE SmallCap (284)
4577.56
0.08 4688.93 4573.69 4571.23 4792.41 2.97 1.27 26.45
FTSE SmallCap ex Inv Co (152)
4174.13 -0.08 4275.68 4177.65 4185.67 4290.28 2.93 1.60 21.29
FTSE All-Share (634)
3448.45
0.11 3532.35 3444.78 3444.81 3824.67 3.73 0.89 30.02
FTSE All-Share ex Inv Co (460)
3411.61
0.10 3494.61 3408.17 3408.09 3790.49 3.77 0.89 29.86
FTSE All-Share ex Multinationals (569) 1163.96
0.23
988.18 1161.26 1161.87 1276.65 2.99 1.43 23.32
FTSE Fledgling (98)
7667.86
0.16 7854.40 7655.73 7659.59 7881.69 2.70 0.65 57.18
FTSE Fledgling ex Inv Co (49)

10438.37
0.25 10692.31 10412.25 10426.89 10521.09 2.79 0.12 291.18
FTSE All-Small (382)
3174.16
0.09 3251.38 3171.36 3169.82 3320.30 2.96 1.24 27.19
FTSE All-Small ex Inv Co Index (201) 3113.45 -0.07 3189.19 3115.66 3121.58 3196.49 2.93 1.55 22.09
FTSE AIM All-Share Index (825)
735.84
0.20
753.74
734.38
733.50
770.26 1.72 0.50 117.10
FTSE Sector Indices
Oil & Gas (17)
6499.44
Oil & Gas Producers (10)
6200.20
Oil Equipment Services & Distribution (7)13418.04
Basic Materials (27)
3235.73
11619.22
Chemicals (7)
Forestry & Paper (1)
15973.05
Industrial Metals & Mining (2)
1158.83
Mining (17)
8616.88
Industrials (119)

4435.27
Construction & Materials (14)
5483.05
Aerospace & Defense (9)
4147.58
General Industrials (6)
3782.14
Electronic & Electrical Equipment (10) 5405.79
Industrial Engineering (14)
8619.09
Industrial Transportation (8)
4497.04
Support Services (58)
6717.56
19189.07
Consumer Goods (41)
Automobiles & Parts (1)
6425.03
Beverages (6)
15834.77
Food Producers (10)
8322.72
Household Goods & Home Construction (14)14453.14
Leisure Goods (2)
5369.72
Personal Goods (6)
23666.75
Tobacco (2)
50440.88
Health Care (20)

9198.10
Health Care Equipment & Services (8) 7263.84
Pharmaceuticals & Biotechnology (12)12386.20
Consumer Services (96)
4771.13
Food & Drug Retailers (7)
2861.57
General Retailers (32)
2758.36
Media (22)
7393.47
Travel & Leisure (35)
8374.40
Telecommunications (6)
3991.72
Fixed Line Telecommunications (4) 5217.15
Mobile Telecommunications (2)
5207.24
Utilities (7)
8728.40
Electricity (2)
9024.36
Gas Water & Multiutilities (5)
8179.17
Financials (282)
4240.33
Banks (9)
3337.03
Nonlife Insurance (10)
2930.92

Life Insurance/Assurance (10)
7237.84
Index- Real Estate Investment & Services (21) 2776.39
Real Estate Investment Trusts (26) 2892.02
General Financial (32)
7710.26
Equity Investment Instruments (174) 7591.20
Non Financials (352)
4094.16
Technology (19)
1422.29
Software & Computer Services (13) 1896.23
Technology Hardware & Equipment (6) 1511.44

-0.63
-0.64
-0.39
-0.93
0.65
0.30
-0.55
-1.26
0.03
0.81
-0.39
0.57
-0.24
-0.58
1.08
-0.08

0.36
-0.44
0.48
0.16
-0.11
-0.62
0.82
0.48
-0.23
0.24
-0.28
0.39
-0.04
0.73
0.19
0.50
0.40
0.68
0.24
0.51
-0.25
0.71
0.32
0.22
0.43
0.56
0.09
0.29
0.43
0.25

0.04
0.23
0.11
0.35

6657.56
6351.04
13744.48
3314.45
11901.90
16361.65
1187.02
8826.52
4543.18
5616.44
4248.49
3874.15
5537.31
8828.78
4606.44
6880.99
19655.91
6581.34
16220.00
8525.19
14804.76
5500.35
24242.52
51668.02
9421.88

7440.56
12687.53
4887.21
2931.19
2825.47
7573.34
8578.13
4088.83
5344.07
5333.93
8940.75
9243.91
8378.15
4343.49
3418.22
3002.23
7413.92
2843.94
2962.37
7897.84
7775.88
4193.76
1456.89
1942.36
1548.21

6540.84
6240.20
13471.00
3266.15

11543.70
15926.03
1165.26
8726.64
4434.14
5438.78
4163.72
3760.88
5418.62
8669.68
4449.19
6722.81
19119.39
6453.23
15758.89
8309.31
14469.62
5403.27
23473.51
50201.15
9219.51
7246.74
12421.59
4752.42
2862.66
2738.28
7379.22
8332.63
3975.62
5181.87

5195.03
8684.07
9047.33
8121.26
4226.68
3329.71
2918.30
7197.46
2773.85
2883.67
7677.15
7572.63
4092.67
1418.97
1894.13
1506.13

6561.95
6257.71
13682.93
3239.90
11486.33
15808.50
1194.76
8649.80
4433.07
5481.50
4151.32
3752.53
5449.54

8690.42
4495.64
6706.37
19068.98
6429.73
15724.15
8297.09
14395.83
5400.72
23351.67
50176.60
9214.06
7252.75
12412.25
4764.67
2837.22
2742.80
7371.90
8410.57
3938.86
5165.14
5127.77
8650.53
9008.63
8090.78
4243.05
3350.99
2918.92
7244.52
2781.27

2880.83
7684.57
7578.81
4087.57
1415.38
1890.20
1501.66

7669.07
7252.98
20097.20
4759.52
13322.63
17548.02
1796.15
13395.82
4860.30
5114.53
5461.98
3613.40
5890.09
9966.99
4605.23
7194.04
17643.03
8664.62
14607.10
8061.09
12838.22
4952.58

23637.20
44482.10
9881.20
7008.72
13451.34
5140.18
3243.69
3221.25
7711.58
8704.37
4243.49
5225.69
5746.78
8998.27
9886.03
8295.14
5085.15
4606.00
2475.95
8488.56
3176.73
3101.59
8580.65
8040.06
4420.56
1470.37
1691.64
1765.10

6.84

6.91
5.01
4.25
2.55
2.93
0.49
4.63
2.55
2.31
2.80
3.04
2.28
3.15
3.70
2.30
2.84
3.18
2.45
1.97
2.14
4.81
2.90
3.70
3.85
1.59
4.10
2.45
1.39
2.66
2.86

2.30
4.14
3.01
4.85
4.62
5.45
4.41
3.95
5.03
2.83
4.08
2.43
3.15
3.20
2.76
3.66
1.53
1.96
1.12

X/D
adj
120.35
207.49
227.18
62.79
62.91
81.40
34.36
53.92

48.51
61.13
61.29
14.05
73.50
89.88
37.04
35.82
4.21

Total
Return
5011.32
12142.68
13468.64
5631.14
2880.62
5316.81
3713.31
6351.38
6080.48
5610.58
2872.71
2009.06
13952.19
18455.70
5654.22
5745.73
796.64


-0.68 -21.53 228.00 5643.03
-0.70 -20.64 218.77 5567.81
0.25 81.20 387.17 10141.86
0.26 91.72
48.76 3224.80
2.12 18.51 125.71 10101.77
2.97 11.50 347.94 16963.52
2.79 72.58
0.00 1011.29
-0.02-1340.71 132.94 4499.87
1.45 27.05
55.55 4463.72
0.05 807.12
83.33 5693.81
1.51 23.63
71.61 4358.10
1.56 21.11
48.86 4171.66
1.92 22.86
49.42 4831.26
1.31 24.29 163.97 10297.95
0.91 29.83
40.84 3820.62
1.77 24.55
67.83 6811.30
1.78 19.79 260.84 13725.34
1.81 17.35 136.30 6032.39
1.59 25.69 102.47 10856.73
1.86 27.27
11.14 6973.60

2.67 17.51 151.56 9940.13
1.22 17.09 129.52 4654.65
2.93 11.76 316.89 15478.09
1.19 22.81 1163.34 31480.12
0.56 46.20 207.65 6863.06
1.80 34.98
53.78 6204.66
0.51 47.95 300.81 8223.56
1.76 23.18
54.75 4357.12
2.56 28.07
22.92 3299.54
2.12 17.70
19.08 3044.94
1.32 26.49
99.84 4424.04
1.85 23.50 110.78 7736.82
-0.28 -85.88
3.65 4186.71
1.80 18.52
0.00 4524.58
-1.08 -19.16
7.87 4877.84
1.55 13.93
79.68 9384.54
1.26 14.61 146.48 12230.41
1.65 13.76
59.90 8810.46
1.54 16.43
97.46 3792.78

0.86 23.18 101.66 2374.88
2.31 15.28
53.63 5020.23
1.53 16.00 201.97 6834.95
5.38
7.64
34.17 7228.91
4.98
6.36
42.61 3471.11
2.02 15.46 125.72 8509.72
1.05 34.53
89.13 4040.52
0.67 41.09
65.56 5828.70
1.69 38.55
12.72 1795.27
1.59 32.00
24.03 2519.81
1.87 47.98
8.47 1744.89

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
6263.81 6267.68 6258.44 6268.78 6264.43 6262.55 6254.60 6257.87 6263.60 6275.78 6250.40
FTSE 250
17189.72 17180.91 17167.50 17182.40 17201.13 17209.54 17196.05 17196.40 17212.94 17232.26 17164.87
FTSE SmallCap
4572.82 4575.83 4576.42 4576.78 4576.66 4578.25 4577.37 4577.65 4578.49 4580.18 4571.23
FTSE All-Share
3443.84 3445.33 3440.84 3445.89 3444.60 3444.09 3440.13 3441.58 3444.67 3449.24 3438.23
Time of FTSE 100 Day's high:09:36:00 Day's Low13:05:30 FTSE 100 2010/11 High: 6410.26(20/04/2016) Low: 5536.97(11/02/2016)
Time of FTSE All-Share Day's high:09:36:00 Day's Low13:05:00 FTSE 100 2010/11 High: 3504.16(20/04/2016) Low: 3046.53(11/02/2016)
Further information is available on © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

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


FT 30 INDEX

FTSE SECTORS: LEADERS & LAGGARDS

May 27 May 26 May 25 May 24 May 23 Yr Ago
High
Low Year to date percentage changes
FT 30
2868.20 2861.30 2859.10 2857.60 2815.10
0.00 2876.90 2547.10 Industrial Metals &
58.42
FT 30 Div Yield
1.70
1.71
1.71
1.71
1.73
0.00
3.93
2.74 Mining
22.25
P/E Ratio net
26.21
26.17
26.09
26.11
25.77
0.00
19.44
14.26 Basic Materials

18.00
FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35
Industrial Transport
14.26
FT 30 hourly changes
Industrial Eng
12.74
8
9
10
11
12
13
14
15
16
High
Low Food & Drug Retailer
9.66
2861.3 2858.8 2855 2861.2 2857.9 2860.1 2857.9 2862.7 2866.4 2868.2 2855.0 Tobacco
9.56
FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30
Oil & Gas Producers
8.87
Oil & Gas
8.52
Personal Goods
5.22
Household Goods & Ho
4.86

4.85
May 26 May 25 Mnth Ago
May 27 May 26 Mnth Ago Consumer Goods
Gas Water & Multi
4.22
Australia
88.31
88.12
94.64 Sweden
79.62
79.70
80.87 Utilities
3.91
Canada
89.94
89.29
92.21 Switzerland
156.04 156.22 157.86 Nonlife Insurance
3.40
Denmark
106.46 106.37 106.52 UK
88.16
88.58
86.38 NON FINANCIALS Index
2.79
Japan
139.20 138.63 137.07 USA
100.59 101.06 100.07 Software & Comp Serv
2.72
New Zealand

111.03 111.51 111.86 Euro
87.06
86.82
87.76
Norway
86.59
86.32
87.15
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

Electricity
Beverages
Mobile Telecomms
Construct & Material
Forestry & Paper
Industrials
Chemicals
Support Services
Electronic & Elec Eq
FTSE 100 Index
FTSE All{HY-}Share Index
Telecommunications
FTSE 250 Index
FTSE SmallCap Index
Technology
Equity Invest Instr
Health Care Eq & Srv

Media

+or-

Oil Equipment & Serv
Leisure Goods
Real Est Invest & Tr
Consumer Services
Health Care
Pharmace & Biotech
Fixed Line Telecomms
Aerospace & Defense
Financial Services
Tech Hardware & Eq
Travel & Leisure
General Retailers
Food Producers
Financials
Life Insurance
Real Est Invest & Se
Automobiles & Parts
Banks

-1.69
-1.98
-2.09
-2.91
-3.06
-3.25
-3.49

-3.73
-4.63
-5.02
-5.35
-6.22
-6.68
-7.27
-8.85
-9.98
-11.35
-11.48

FTSE GLOBAL EQUITY INDEX SERIES
May 27
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 Global All Cap ex Eurozone
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 Eurozone 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
US $
stocks indices
7703 454.74
7079 462.39
1425 399.87
1642 616.05
4636 641.41
3067 265.44
2543 471.37
7382 467.75
5748 414.33
6440 465.44
7058 469.29
2094 429.08
5665 450.89
899 395.60
223 323.31
305 512.27
695 726.58
291 446.65
395 668.84
1483 668.66
686 299.22
1408 220.90
176 306.36
307 478.96
780 523.22
483 128.56

549 532.06
422 731.60
1430 486.98
971 422.09
2038 579.29
526 546.69
447 735.02
1065 605.65
112 304.82
238 678.13
221 627.30
321 328.34
1955 512.36
1411 376.90
645 351.59
3049 5483.21
1006 9152.95
3067 322.06
528 279.25

Day
%
0.2
0.3
0.2
0.2
0.1
0.2
0.2
0.2

0.5
0.2
0.1
0.2
0.2
0.2
0.5
0.3
0.2
0.0
0.0
0.0
0.0
0.5
0.6
0.6
0.6
0.6
0.4
0.6
0.4
0.4
0.5
0.4
0.6
0.6
0.2
0.4
0.6
-0.3

0.0
0.4
0.8
0.2
-0.2
0.2
0.4

Mth
%
-1.1
7.3
-1.2
-0.9
-0.5
-1.2
-1.1
-1.2
-2.2
-1.0
-1.0
-0.8
-0.8
-0.9
-1.0
0.3
1.3
-0.1
-0.4
-0.6

-0.1
-1.9
-3.0
-1.5
1.6
-2.7
-4.3
-4.6
-3.2
-4.3
-4.4
-4.4
-5.3
-3.5
-4.1
-6.5
-7.5
0.7
-0.1
-0.7
-1.6
-2.4
-1.1
-0.7
0.3

YTD
%
0.8
-0.3

0.3
2.3
2.3
0.7
0.8
0.9
-0.7
1.4
1.2
0.6
0.8
0.2
-2.0
-0.1
-0.7
2.3
4.5
4.2
2.7
-2.6
-6.5
-2.6
-0.6
-5.7
-1.7
-2.0
-2.5
-1.7
1.4
1.5

3.5
-1.6
14.1
13.3
1.4
-0.2
2.2
-1.2
-2.0
1.1
3.5
2.1
0.0

Total
retn
629.85
624.68
567.09
812.87
820.68
388.05
925.53
638.57
611.19
650.46
637.85
599.30
622.67
560.40

522.66
747.22
1029.14
593.69
831.48
808.67
407.41
350.65
387.21
583.90
659.59
182.52
803.86
1065.25
698.22
677.76
832.30
789.95
1053.61
838.86
450.98
1014.24
949.52
528.68
662.38
589.20
555.97
7012.54
11694.29
437.42

414.56

YTD Gr Div May 27
No of
US $
Day
Mth
YTD
Total
YTD Gr Div
% Yield Sectors
stocks indices
%
%
%
retn
% Yield
2.1
2.6 Oil & Gas
152 336.32
-0.1
-0.1
10.3 522.48
12.1
3.8
0.2
2.5 Oil & Gas Producers
110 315.99
-0.1
-0.1

10.7 499.96
12.6
3.9
1.6
2.7 Oil Equipment & Services
32 303.77
-0.1
-0.1
9.4 429.22
10.9
3.4
3.4
2.2 Basic Materials
256 370.15
0.2
0.2
5.3 550.50
6.9
3.0
3.1
2.1 Chemicals
124 581.31
-0.1
-0.1
-1.7 868.52
-0.1
2.8
1.9
2.6 Forestry & Paper
16 199.37

0.4
0.4
1.7 328.41
4.3
3.8
2.1
2.6 Industrial Metals & Mining
62 290.94
0.4
0.4
13.1 431.03
13.8
2.8
2.1
2.5 Mining
54 415.60
1.1
1.1
28.4 617.24
30.2
3.7
0.9
3.1 Industrials
536 308.70
0.2
0.2
3.2 434.14
4.4
2.3
2.7

2.6 Construction & Materials
111 449.10
0.5
0.5
7.2 661.27
8.5
2.2
2.3
2.5 Aerospace & Defense
26 515.07
0.2
0.2
1.7 718.01
2.9
2.4
1.9
2.6 General Industrials
55 223.83
0.1
0.1
3.2 338.72
4.6
2.6
2.1
2.5 Electronic & Electrical Equipment
69 308.34
0.1
0.1
-2.6 398.57
-1.7

2.0
1.6
2.7 Industrial Engineering
104 565.46
0.5
0.5
5.5 783.30
6.9
2.5
0.5
3.7 Industrial Transportation
98 515.12
0.3
0.3
4.0 723.08
5.3
2.5
1.8
2.8 Support Services
73 284.14
0.2
0.2
3.0 383.52
4.0
2.0
424 420.84
0.5
0.5
1.0 605.73
2.2

2.5
0.8
2.6 Consumer Goods
3.3
2.3 Automobiles & Parts
104 341.67
1.0
1.0 -10.5 474.15
-9.1
3.1
5.2
1.8 Beverages
48 593.11
0.6
0.6
3.7 862.62
4.6
2.5
4.9
1.8 Food Producers
103 584.61
0.6
0.6
4.6 868.82
6.3
2.2
3.6
2.2 Household Goods & Home Construction
48 418.75
0.1

0.1
4.3 599.12
5.5
2.3
-0.7
3.2 Leisure Goods
31 135.79
0.3
0.3
3.0 175.55
3.4
1.5
-5.5
2.3 Personal Goods
79 603.24
0.5
0.5
0.9 825.47
1.9
2.1
-1.7
1.9 Tobacco
11 1338.14
0.0
0.0
10.0 2649.06
11.4
3.6
0.5
2.1 Health Care

178 445.39
0.2
0.2
-2.8 627.80
-1.7
2.0
-4.8
2.2 Health Care Equipment & Services
64 691.24
0.0
0.0
6.4 795.61
6.8
1.0
-0.7
3.3 Pharmaceuticals & Biotechnology
114 327.83
0.2
0.2
-5.8 481.49
-4.4
2.4
-1.1
3.2 Consumer Services
392 388.55
0.3
0.3
-0.3 509.02
0.5
1.8

-1.7
2.9 Food & Drug Retailers
54 294.65
0.1
0.1
-1.7 402.08
-0.8
1.9
-0.7
3.3 General Retailers
122 530.43
0.8
0.8
-0.5 677.47
0.3
1.6
2.2
3.2 Media
86 295.93
0.0
0.0
2.3 388.66
3.2
2.0
2.2
3.2 Travel & Leisure
130 373.42
0.0
0.0
-2.1 494.07

-1.3
1.9
4.6
3.0 Telecommunication
91 164.95
0.1
0.1
4.7 295.18
6.5
4.1
-0.9
3.1 Fixed Line Telecommuniations
42 141.30
0.6
0.6
6.6 277.49
8.8
4.5
15.0
4.0 Mobile Telecommunications
49 168.27
-0.5
-0.5
2.2 271.69
3.4
3.5
14.7
3.3 Utilities
163 253.21
0.8

0.8
6.7 471.00
8.4
3.8
111 276.26
0.8
0.8
6.7 508.45
8.4
3.7
3.0
3.0 Electricity
52 268.81
0.8
0.8
6.7 512.66
8.4
4.0
1.7
3.8 Gas Water & Multiutilities
689 193.72
0.0
0.0
-3.5 305.89
-1.9
3.2
3.1
2.1 Financials
246 167.16
0.0

0.0
-6.3 282.04
-4.5
3.8
1.1
3.5 Banks
68 215.91
0.1
0.1
0.7 306.10
2.5
2.5
0.3
3.3 Nonlife Insurance
50 183.39
-0.5
-0.5
-7.5 283.07
-5.9
3.3
2.6
3.3 Life Insurance
150 218.62
-0.3
-0.3
-1.7 294.04
-0.7
2.1
4.6
2.5 Financial Services

186 174.77
0.3
0.3
0.3 210.12
1.1
1.8
3.2
2.3 Technology
89 314.38
0.2
0.2
1.4 362.87
1.9
1.1
1.7
2.7 Software & Computer Services
Technology Hardware & Equipment
97 125.20
0.5
0.5
-0.9 155.22
0.1
2.7
Alternative Energy
10
98.44
0.2
0.2
-4.8 131.19
-4.2

1.3
Real Estate Investment & Services
103 273.39
0.4
0.4
-3.3 442.35
-2.0
2.7
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

2.69
2.64
2.10
2.02
1.87
1.60
0.91
0.71
0.59
0.46
0.12

-0.17
-1.13
-1.23
-1.34
-1.50
-1.51
-1.60

FTSE 100 SUMMARY

Company
Boxhill Technologies
Caffyns
Clontarf Energy
European Investment Trust (The)
Income & Growth VCT (The)
Independent Oil & Gas
Intermediate Capital Group
JPMorgan Indian Investment Trust
KCOM Group
President Energy
Standard Life European Private Equity Trust
Volvere
W Resources
Watchstone Group

FTSE 100

Closing Week's
Price Change FTSE 100


3I Group PLC
Admiral Group PLC
Anglo American PLC
Antofagasta PLC
Arm Holdings PLC
Ashtead Group PLC
Associated British Foods PLC
Astrazeneca PLC
Aviva PLC
Babcock International Group PLC
Bae Systems PLC
Barclays PLC
Barratt Developments PLC
Berkeley Group Holdings (The) PLC
Bhp Billiton PLC
BP PLC
British American Tobacco PLC
British Land Company PLC
Bt Group PLC
Bunzl PLC
Burberry Group PLC
Capita PLC
Carnival PLC
Centrica PLC
Coca-Cola Hbc AG
Compass Group PLC
Crh PLC
Dcc PLC
Diageo PLC

Direct Line Insurance Group PLC
Dixons Carphone PLC
Easyjet PLC
Experian PLC
Fresnillo PLC
Gkn PLC
Glaxosmithkline PLC
Glencore PLC
Hammerson PLC
Hargreaves Lansdown PLC
HSBC Holdings PLC
Imperial Brands PLC
Informa PLC
Inmarsat PLC
Intercontinental Hotels Group PLC
International Consolidated Airlines Group S.A.
Intertek Group PLC
Intu Properties PLC
Itv PLC
Johnson Matthey PLC
Kingfisher PLC
Land Securities Group PLC

552.00
1947
612.00
436.60
982.00
986.00
2950

4022.5
455.70
1032
483.00
186.20
598.50
3330
840.30
361.95
4205.5
760.00
451.90
2024
1097
1075
3446
205.30
1326
1288
2082
6260
1883
371.80
445.90
1552
1291
1017
273.40
1452.5
134.30

588.50
1346
448.45
3786
668.50
748.50
2671
544.00
3150
304.70
220.50
2883
374.60
1188

46.50
74.00
11.70
7.60
37.50
20.50
30.00
128.00
19.10
45.00
-0.50
10.35
18.00
127.00
22.40

0.45
58.50
18.50
8.90
0.00
2.00
-2.00
-88.00
3.80
-40.00
8.00
39.00
-225.00
45.00
3.80
6.60
82.00
26.00
-63.00
-1.80
16.50
5.65
21.00
83.00
19.20
86.50
1.50
-6.50
110.00
27.50

-142.00
18.30
7.70
8.00
13.40
13.00

Closing Week's
Price Change

Legal & General Group PLC
Lloyds Banking Group PLC
London Stock Exchange Group PLC
Marks And Spencer Group PLC
Mediclinic International PLC
Merlin Entertainments PLC
Mondi PLC
Morrison (Wm) Supermarkets PLC
National Grid PLC
Next PLC
Old Mutual PLC
Paddy Power Betfair PLC
Pearson PLC
Persimmon PLC
Provident Financial PLC
Prudential PLC
Randgold Resources LD
Reckitt Benckiser Group PLC
RELX PLC
Rexam PLC

Rio Tinto PLC
Rolls-Royce Holdings PLC
Royal Bank Of Scotland Group PLC
Royal Dutch Shell PLC
Royal Dutch Shell PLC
Royal Mail PLC
Rsa Insurance Group PLC
Sabmiller PLC
Sage Group PLC
Sainsbury (J) PLC
Schroders PLC
Severn Trent PLC
Shire PLC
Sky PLC
Smith & Nephew PLC
Sse PLC
St. James's Place PLC
Standard Chartered PLC
Standard Life PLC
Taylor Wimpey PLC
Tesco PLC
Travis Perkins PLC
Tui AG
Unilever PLC
United Utilities Group PLC
Vodafone Group PLC
Whitbread PLC
Wolseley PLC
Worldpay Group PLC
WPP PLC


240.00
72.45
2724
386.60
870.50
423.00
1359
198.00
1009
5535
178.00
9145
828.50
2112
2914
1394
5735
6873
1250
627.00
1964
615.00
251.20
1680.5
1675
532.50
482.10
4283.5
604.50

269.30
2736
2291
4289
971.50
1179
1544
932.00
542.80
342.80
206.00
167.25
1927
1050
3152.5
971.00
232.60
4249
4088
272.20
1583

14.60
2.11
126.00
-58.10
24.00
7.10
20.00
5.00

22.40
190.00
8.30
385.00
12.00
22.00
63.00
60.00
-295.00
53.00
17.00
-1.00
11.50
-28.00
19.40
-8.50
-5.00
40.60
1.50
33.50
14.00
8.70
161.00
81.00
8.00
28.50
28.00
9.00
36.00
16.60

11.30
0.50
2.95
67.00
11.00
71.50
16.00
3.50
-30.00
116.00
8.10
0.00

UK STOCK MARKET TRADING DATA
May 27
May 26
May 25
May 24
May 23
Yr Ago
SEAQ Bargains
5330.00
5295.00
4214.00
4580.00
4256.00
4256.00
Order Book Turnover (m)
158.37
56.72

194.53
71.88
89.16
89.16
Order Book Bargains
658650.00 875187.00 815102.00 765189.00 762914.00 762914.00
Order Book Shares Traded (m)
1226.00
1616.00
1530.00
1401.00
1524.00
1524.00
Total Equity Turnover (£m)
2662.60
2741.75
2727.76
2721.67
2566.07
2566.07
Total Mkt Bargains
733153.00 958830.00 888991.00 836222.00 840611.00 840611.00
Total Shares Traded (m)
5418.00
6125.00
5487.00
5074.00
5589.00
5589.00
† 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

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

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

Turnover
2.064
3.286
232.492 210.314

1.895
449.3

1.432
426.2

349.222
10.092

347.984
12.588

27.864
0.082
58.784

12.387
0.964
60.128

Pre-tax
0.633
0.204
11.438
2.635
0.274L
0.205L
35.899
6.888
1.019

1.483
12.145L
5.322
178.5
158.8
142.32
13.227
16.693
88.743
14.326
18.697L
24.953
49.469
1.198
1.343
0.641L
0.606L
177.988L 205.308L

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)
0.01L
90.1
0.05L
2.08
1.69
7.4
41.9

1.77L
13.96
0.039L
3.24
158.8
0.02L
609

0.03
335.5
0.09L
3.58
1.29
19.2L
50.3
2.65L
2.47
0.037
1.78
25.6
0.03L
878.9L

Div(p)
13.5
14.5
6
6
15.8 17.61666
3.58

3.94
1.75
1.8
-

Pay day
Jul 28
Jul 7
Aug 5
Aug 2
Jul 15
-

Total
21.75
11.967
23
5.91
5.281
-

20.25
10
25.667
5.37
6.75
-

Issue
date

05/27
05/26
05/18
05/13
05/12
05/10
05/10
05/06
05/05

Issue
price(p)
75.00
160.00
130.00
200.00
9.00
148.00
8.00
208.00
108.00

Sector
AIM
AIM
AIM
AIM
AIM

Stock

code
ONC
MOTR
GSH
HOTC
TOOP
MIDW
MCL

Stock
Directa Plus PLC
Joules Group PLC
Oncimmune Holdings PLC
Motorpoint Group PLC
Green & Smart Holdings PLC
Hotel Chocolat Group PLC
Toople PLC
Midwich Group PLC
Morses Club 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)
105.50
195.50
130.50
230.50
10.38

202.50
8.50
262.38
99.88

+/-0.50
1.00
-4.75
0.00
13.50
-0.13
6.75
-5.50

High
107.00
197.00
140.00
238.00
11.00
225.00
10.00
270.00
116.50

Low
83.00
160.00
126.00
200.00

10.00
148.00
8.00
209.48
100.00

Mkt
Cap (£m)
4664.5
17106.2
6658.7
23050.0
2870.4
22849.7
0.0
20845.2
12933.8


★

22

FINANCIAL TIMES

Monday 30 May 2016

MARKET DATA
FT500: THE WORLD'S LARGEST COMPANIES
Stock

Australia (A$)
ANZ♦
BHPBilltn
CmwBkAu
CSL
NatAusBk♦
Telstra
Wesfarmers
Westpc♦
Woolworths
Belgium (€)
AnBshInBv
KBC Grp
Brazil (R$)
Ambev
Bradesco
Cielo
ItauHldFin
Petrobras
Vale
Canada (C$)
BCE
BkMontrl
BkNvaS
Brookfield♦
CanadPcR
CanImp
CanNatRs
CanNatRy
Enbridge♦

GtWesLif
ImpOil
Manulife♦
Potash
RylBkC
Suncor En
ThmReut♦
TntoDom
TrnCan
ValeantPh
China (HK$)
AgricBkCh
Bk China
BkofComm
BOE Tech
Ch Coms Cons
Ch Evrbrght
Ch Rail Cons
Ch Rail Gp
ChConstBk
China Vanke
ChinaCitic
ChinaLife
ChinaMBank
ChinaMob
ChinaPcIns
ChMinsheng
ChMrchSecs RMB
Chna Utd Coms RMB
ChShenEgy

ChShpbldng RMB
ChStConEng RMB
ChUncHK♦
CNNC Intl RMB
CSR
Daqin RMB
Gree Elec Apl
GuosenSec RMB
HaitongSecs
Hngzh HikVDT RMB
Hunng Pwr
IM Baotou Stl RMB
In&CmBkCh
IndstrlBk RMB
Kweichow RMB
Midea
New Ch Life Ins
PetroChina
PingAnIns
PngAnBnk RMB
Pwr Cons Corp RMB
SaicMtr RMB
ShenwanHong
ShgPdgBk RMB
Sinopec Corp
Sinopec Oil RMB
Denmark (kr)
DanskeBk
MollerMrsk
NovoB


52 Week
High
Low

Price+/-Week

Yld

P/E MCap m

25.85
19.37
78.90
115.73
27.30
5.67
41.17
30.98
22.08

0.94
0.66
1.14
1.50
0.02
0.03
-1.31
0.84
-0.09


33.86
29.59
88.88
117.61
34.90
6.53
44.14
35.15
29.22

21.86 10.88 10.71 54226.24
14.06 11.80 22.95 44729.35
69.79 7.61 14.97 97298.51
85.40 1.43 27.80 38069.06
23.82 11.27 10.67 51922.15
4.98 7.71 16.31 49840.7
36.65 6.96 18.76 33334.88
27.69 9.35 12.06 74303.15
20.50 9.02-258.84 20300.97

113.95
53.58

4.65
3.58

124.20
66.00


87.73
44.15

3.06 25.79 203995.32
3.89 14.63 24935.83

19.30
25.54
31.65
26.23
10.49
14.29

0.76
-0.57
0.16
-0.17
-0.84
0.16

20.46
32.00
38.56
33.78
15.05
22.19

15.99
16.27
23.36

21.49
5.67
8.60

2.85
4.22
1.55
2.89
7.72

24.05
7.72
19.16
5.87
-3.50
-2.20

83902.67
19615.41
19819.12
22105.88
21593.54
12715.71

60.48
83.44
65.00
46.54
169.83
102.19

38.90
78.22
52.78
35.83
42.26
19.51
21.59
80.55
35.90
55.10
57.67
54.52
37.08

0.14
0.75
1.90
2.09
0.33
0.75
0.98
1.76
-0.08
0.93
1.24
0.72
-0.09
2.70
1.40
0.97

1.17
1.05
1.04

61.10
84.55
66.99
47.27
218.69
104.30
39.59
83.81
61.18
37.70
50.23
24.20
40.47
80.85
40.35
55.92
58.13
54.74
347.84

51.56
64.01
51.17
37.70
140.02
82.19

21.27
66.62
40.03
30.42
37.25
15.32
20.03
64.52
27.32
47.25
47.75
40.58
30.22

4.46
4.13
4.05
1.40
0.84
4.61
2.42
1.72
3.74
3.79
0.86
3.65
9.33
4.07
3.28
3.24

3.74
3.99
-

18.68
12.07
12.04
18.40
16.64
10.79
-84.80
16.82
28.69
13.00
58.47
15.74
13.99
11.70
-36.42
27.13
12.65
-27.37
-33.71

40323.69
41203.48
59986.61
35245.89
19947.55
30945.52

32755.35
46783.26
37627.91
27302.36
27484.78
29526.43
13901.63
91985.02
43578.9
31806.25
81958.43
29383.13
9759.58

2.80
3.14
4.77
2.05
8.66
3.30
9.53
5.86
4.94
17.98
4.70
16.92
15.92
87.15
25.95
7.34

15.51
3.87
12.44
5.94
5.28
8.26
6.72
7.25
6.34
0.17
14.62
12.20
20.50
5.03
2.85
4.08
15.77
252.44
1.71
25.70
5.35
33.65
10.27
5.79
19.75
0.17
17.74
5.29
3.86


0.12
0.17
0.29
-0.10
0.24
0.16
0.38
0.13
0.42
0.56
0.28
0.46
0.78
3.75
0.55
0.34
-0.14
0.00
1.00
0.08
0.01
-0.10
0.08
0.08
-0.01
-0.02
0.12
0.48
-0.07
-0.14

-0.08
0.25
-0.26
6.67
-0.03
1.45
0.14
0.40
0.02
-0.07
-0.06
0.00
0.39
0.18
-0.08

4.39
5.48
8.61
4.78
14.36
5.30
15.36
10.76
7.98
24.10
6.90
39.30
26.85
105.00

42.80
11.26
34.59
10.67
20.75
19.97
10.56
13.84
14.38
16.98
15.15
0.45
34.50
25.80
51.36
11.08
7.44
6.95
20.82
283.00
2.68
53.00
9.60
61.15
17.45
16.85
27.36
0.40
20.12
7.12

14.23

2.50
2.83
4.24
1.55
5.77
3.07
6.72
4.21
4.31
15.52
4.00
16.12
12.72
79.00
23.70
6.13
13.45
3.82
10.12
5.66
4.88
7.87
4.07
6.61
6.30
0.13
13.28
10.00

20.28
4.96
2.66
3.72
11.90
166.20
1.65
22.00
4.16
30.50
9.30
5.60
14.00
0.12
11.91
3.86
3.80

8.06
7.51
7.02
0.97
2.42
6.99
1.95
1.65
7.56
3.43
2.89
5.22

3.21
2.29
3.11
5.11
1.79
7.26
0.66
3.36
3.00
2.02
7.81
1.41
2.54
1.34
9.32
7.77
3.73
1.79
5.81
0.98
3.65
2.49
1.75
1.78
6.79
4.40
4.65
-

4.23 11082.58

4.66 33810.16
4.34 21504.29
35.13
52.52
7.32 4937.11
4.29 2918.66
8.02 2547.86
9.10 3174.73
4.44 152927.05
8.91 3044.36
4.37 9006.54
14.17 16212.01
5.57 9410.98
13.86 229771.37
11.18 9273.44
4.70 6553.13
9.43 11356.64
30.93 12505.36
13.60 5443.92
-37.43 16261.38
6.03 24066.59
20.56 25469.88
26.10
3986.1
13.83 4080.56
8.30 14368.9
-3.43
298.33
10.17 4892.26
8.32 5356.16

20.23 9912.66
4.83 3044.34
-20.47 6839.44
4.34 45598.12
5.72 45803.15
19.18 48342.86
10.04
47.35
7.86
3422.1
52.13 14534.82
9.06 32269.68
6.30 18480.66
14.61 2912.78
6.98 33195.89
-0.23
55.38
6.23 50446.26
14.19 17378.73
-36.17 1049.38

192.50
9.50
8530 -295.00
371.00 11.90

218.00
13560
415.00


168.30
7355
305.10

4.32 13.77 28345.05
- -49.72 13588.96
1.79 26.56 111763.92

Stock

Price+/-Week

Day
change change %
0.75
0.05
11.75
6.38
1.71
4.02
0.13
1.00
0.49
0.48
2.00
0.83
0.08
1.65
1.04
0.79

7.40
4.52
0.04
0.80
-0.24
-0.47
-3.15
-0.87
-0.14
-1.11
0.16
0.37
0.06
0.49
0.10
0.21
2.60
1.05
-0.13
-0.12
1650.00
6.11
0.01
0.23

Week
change change %
219.80
17.5
24.55

14.3
5.19
13.3
1.51
13.0
10.81
11.7
23.05
10.5
0.42
9.3
11.30
9.3
14.00
8.9
0.41
8.9
4.05
8.9
28.95
8.8
1.00
8.7
3.40
8.5
0.89
8.5
3.75
8.4
19.40

8.4
7.97
7.9
2050.00
7.7
0.43
7.5

Month
change %
15.14
-2.51
1.03
3.21
13.47
-4.29
-1.40
10.26
5.81
-3.89
3.94
9.74
-5.61
8.32
3.45
-8.97
-0.36
16.48
-1.72
-6.50


INTEREST RATES: OFFICIAL
Current
0.25-0.50
3.50
0.75
0.00
0.50
0.00-0.00
0.00-0.25

May 27 (Libor: May 26)
US$ Libor
Euro Libor
£ Libor
Swiss Fr Libor
Yen Libor
Euro Euribor
Sterling CDs
US$ CDs
Euro CDs

Stock

52 Week
High
Low

Price+/-Week


Japan (¥)
AstellasPh
1466
Bridgestne
3694
Canon
3131
CntJpRwy
19305
Denso
4320
EastJpRwy
9942
Fanuc
16350
FastRetail
29000
Fuji Hvy Ind
3971
Hitachi
483.60
HondaMtr
3027
JapanTob
4312
KDDI
3174
Keyence
69240
MitsbCp

1919.5
MitsubEst
2093
MitsubishiEle
1280
MitsuiFud
2654
MitUFJFin
542.70
Mizuho Fin
171.30
Murata Mfg
12325
NipponTT
4815
Nissan Mt
1064.5
Nomura
472.40
Nppn Stl
2260
NTTDCMo
2731
Panasonic
965.00
Seven & I
4700
ShnEtsuCh
6293
Softbank

6053
Sony
3078
SumitomoF
3504
Takeda Ph
4797
TokioMarine
3837
Toyota
5589
Mexico (Mex$)
AmerMvl
11.50
FEMSA UBD 169.19
WalMrtMex
44.40
Netherlands (€)
Altice
15.38
ASML Hld
89.78
Heineken
83.86
ING
11.38
Unilever♦
40.72
Norway (Kr)
DNB

107.80
Statoil♦
135.10
Telenor
140.80
Qatar (QR)
QatarNtBk
136.00
Russia (RUB)
Gzprm neft
149.88
Lukoil
2682
MmcNrlskNckl
9140
Novatek
659.90
Rosneft
320.60
Sberbank
133.20
Surgutneftegas
33.80
Saudi Arabia (SR)
AlRajhiBnk
57.90
Natnlcombnk
41.15
SaudiBasic
82.43

SaudiTelec
63.31
Singapore (S$)
DBS♦
15.54
JardnMt US$
55.50
JardnStr US$
29.31
OCBC♦
8.56
SingTel
3.93
UOB
18.21
South Africa (R)
Firstrand
43.90
MTN Grp
125.84
Naspers N
2270
South Korea (KRW)
HyundMobis 255500
KoreaElePwr
62600
SK Hynix
28650
SmsungEl
1282000

Spain (€)
BBVA
6.06
BcoSantdr
4.40
CaixaBnk♦
2.49
Iberdrola
6.17
Inditex
30.10
Repsol
11.84
Telefonica
9.53

Yld

P/E MCap m

-23.50
-50.00
48.00
-55.00
213.00
27.00
85.00
525.00
81.00
-12.40

77.50
-177.00
36.00
850.00
31.50
-12.00
-14.00
-34.50
12.90
2.70
-145.00
55.00
28.50
7.40
33.00
37.50
0.00
-9.00
-4.00
60.00
195.50
55.00
86.00
114.00
95.00

2009
5182
4374
22960

6548
12815
28200
61970
5223
856.80
4499
4850
3446
70100
2837
2968
1718
3879
936.80
280.40
22220
5419
1350
909.20
3505
2888
1853.5
5998
7790
7800
3905
5770
6609
5504

8700

1358
3561
2977.5
18255
3879
9162
15300
26320
3275
431.00
2726
3551
2519
50500
1565
1962.5
947.00
2260.5
431.90
149.30
11610
4005
922.00
435.10
1773.5
1961
799.00
4168

5160
4133
2199
2819.5
4682
3310
5256

1.98
3.50
4.76
0.56
2.58
1.14
4.29
1.27
2.49
2.25
2.63
2.72
1.71
0.26
2.59
0.65
1.91
0.96
3.00
4.10
1.47
1.79

3.19
4.41
2.60
2.32
1.88
1.38
1.51
0.60
0.66
4.01
3.40
2.54
3.65

-0.02
7.84
1.55

16.94
176.84
47.44

10.87
133.52
35.50

2.48 22.03 26167.06
1.42 35.32 32783.89
1.38 26.71 41985.28


0.68
4.60
1.82
0.89
1.72

47.73
104.85
86.95
16.00
42.84

9.98
70.25
64.54
9.19
32.86

7.40
0.80
0.80

138.80
148.00
186.10

90.10
97.25
116.80


3.61 7.45 21064.54
5.47 55.30 51680.6
2.77 54.22 25361.89

-0.10

165.00

122.50

2.63

3.18
-30.00
20.00
5.40
-4.05
11.30
0.15

170.43
2902
11284
668.80
356.95
134.79
41.16

122.75 4.33 4.86 53464.26
2040.1 5.34 7.39 34373.36

7840 17.86 11.44 21793.86
508.00 8.96 15.47 30191.21
214.80 2.31 10.62 51197.78
66.50 0.33 14.70 43326.3
30.31 2.95 18195.25

-1.47
-1.55
-1.81
-0.94

69.00
69.00
107.25
73.25

44.70
36.60
59.50
52.75

2.65 12.08 25087.66
3.85 8.82 21944.62
6.81 13.25 65937.84
6.45 13.57 33762.18

0.53
1.72
0.47
0.14

0.12
0.46

21.50
62.72
34.32
10.48
4.44
23.71

13.01
45.00
25.24
7.41
3.38
16.80

4.01 8.60 28297.47
2.59 11.65 39471.37
0.93 9.08 32608.81
4.37 9.06 25599.64
4.28 16.88 45543.05
4.85 9.18 21274.79

1.90
-2.55
158.09

0.81
1.36

3.06
2.83

18.97 29649.92
10.80 27341.49
16.05 38013.87
13.81 36200.72
14.50 34765.61
18.50 35521.69
19.05 30650.91
55.36 28001.78
8.36 28298.76
9.49 21277.73
11.59
49913
17.72 78503.48
18.44 75712.97
38.45 38322.56
10.47 27783.46
58.12 26490.39
12.54 25018.59
23.22 23951.95
5.78 69996.26
6.48 39038.29
13.55 25273.08
16.72 91886.02
8.62 43554.01
8.28 16437.82
10.70 19550.55
22.52 98409.54

12.38 21548.38
28.07 37925.24
20.41 24753.06
14.39 66156.27
31.61 35374.16
9.48 45103.55
-37.14 34509.06
14.92 26458.71
8.36 169824.46

-50.36
31.44
26.24
8.52
24.46

14054.78
43306.71
53769.22
49115.21
77714.85

9.76 31366.02

57.80 34.08 4.79 10.98 15729.73
237.32 109.56 11.86 6.30 14834.2
2280.7 1521.98 0.23 65.29 63497.09

13000 272000 185500
1600 63700 40800

2050 51700 25650
12000 1393000 1033000
0.43
0.26
0.05
0.10
1.30
0.54
0.35

9.48
6.89
4.50
6.71
35.38
17.82
14.31

5.24
3.31
2.33
5.66
26.00
7.95
8.48

1.44 12.97 21092.62
4.94 3.03 34081.29
1.83 6.15 17153.84
1.54 9.79 155439.67

6.36 22.38 43700.1
7.10 10.83 70698.27
5.01 20.07 16401.46
2.65 15.25 43965.38
1.34 32.54 104426.14
8.35 -10.46 19002.3
8.14-240.50 52784.13

Last
1.00
3.50
0.75
0.05
0.50
0.00
0.00-0.75

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

Year Ago
0.00-0.25
3.50
0.75

0.05
0.50
0.00-0.10
0-0.25

Day
0.000
-0.002
0.000

Change
Week
0.001
0.000
0.000

Month
0.005
0.001
0.002
0.002
-0.003
0.001
0.000
0.000
0.000

One
month
0.45445

-0.35286
0.51444
-0.76760
-0.04243
-0.34800
0.50000
0.43000
-0.39500

Three
month
0.67405
-0.27886
0.58919
-0.73320
-0.02450
-0.25800
0.60000
0.62500
-0.30500

Six
month
0.97710
-0.15986
0.73500
-0.64060
-0.00143
-0.14600
0.77500

0.87500
-0.20500

One
year
1.32070
-0.03243
1.01150
-0.51440
0.09286
-0.01400

Short
7 Days
One
Three
Six
One
May 27
term
notice
month
month
month
year
Euro
-0.45 -0.35 -0.45 -0.35 -0.47 -0.32 -0.38 -0.23 -0.28 -0.13 -0.09 0.06
Sterling
0.45 0.55 0.45 0.55 0.55 0.65 0.70 0.85 0.93 1.08
Swiss Franc

Canadian Dollar
US Dollar
0.35 0.45 0.35 0.45 0.40 0.50 0.55 0.65 0.90 1.00 1.25 1.35
Japanese Yen
-0.10 0.10 -0.35 -0.15 -0.30 -0.10 -0.30 -0.10 -0.20 0.00 -0.10 0.10
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs:
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA.

COMMODITIES
Energy
Price*
Crude Oil†
Jun
49.52
Brent Crude Oil‡
49.41
RBOB Gasoline†
May
1.63
Heating Oil†
Jun
1.50
Natural Gas†
Jun
2.16
Ethanol♦
Uranium†
Jun
28.20
Carbon Emissions‡

Diesel†
Unleaded (95R)
Base Metals (♠ LME 3 Months)
Aluminium
1554.00
Aluminium Alloy
1540.00
Copper
4691.50
Lead
1695.00
Nickel
8425.00
Tin
16200.00
Zinc
1895.50
Precious Metals (PM London Fix)
Gold
1216.25
Silver (US cents)
1630.00
Platinum
984.00
Palladium
546.00
Bulk Commodities
Iron Ore (Platts)
51.80
Iron Ore (The Steel Index)

50.90
GlobalCOAL RB Index
54.25
Baltic Dry Index
606.00

www.ft.com/commodities

Change
0.20
-0.04
0.02
-0.01
0.02
0.00
-1.00
-60.00
29.50
17.50
75.00
440.00
18.50
-7.60
-16.00
-19.00
1.00
1.80
1.00
-0.25
5.00


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

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

Jun

Aug
Jun

Price*
413.25
480.75
1087.25
402.40
2205.00
2993.00
1642.00
121.35
486.10
17.72
64.39
146.85
119.70
146.48
80.45

Change
4.50
-1.00
7.75
-5.70
35.00
49.00
4.00
-0.45
1.40

0.08
0.11
-1.65
0.93
1.25
-0.15

May 26
371.88
85.47
186.92
2204.26
231.14
13.33
5.01
0.40
1950.00

% Chg
Month
1.35
0.93
2.59
-9.84
2.78
-0.99
0.00
-51.62

% Chg

Year
-15.91
-33.05
-14.92
-26.32
-4.76
17.82

Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul

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

Stock

Price+/-Week

Sweden (SKr)
AtlasCpcoB
198.30
2.80

Ericsson
64.40
0.80
H&M
258.70
1.10
Investor
293.00 14.20
Nordea Bk
82.15
3.85
SEB
81.05
4.75
SvnskaHn
107.90
4.20
Swedbank
185.60 11.20
Telia Co
39.52
1.04
Volvo
92.50
1.55
Switzerland (SFr)
ABB
20.96
0.69
CredSuisse

14.15
0.60
Nestle
74.25
1.45
Novartis
79.60
4.55
Richemont
58.75 -0.20
Roche
263.40 16.30
Swiss Re
89.30
2.80
Swisscom
478.70
6.20
Syngent
395.00 -1.00
UBS
15.34
0.61
Zurich Fin
243.90
5.40
Taiwan (NT$)
Chunghwa Telecom 110.50
1.00
Formosa PetChem

89.90
1.60
HonHaiPrc
78.40
4.20
MediaTek
212.50 12.50
TaiwanSem
156.50
9.50
Thailand (THB)
PTT Explor
307.00
4.00
United Arab Emirates (Dhs)
Emirtestele
17.40 -0.20
United Kingdom (p)
AscBrFd
2950 30.00
AstraZen
4022.5 128.00
Aviva
455.70 19.10
Barclays
186.20 10.35
BP♦
361.95
0.45
BrAmTob

4205.5 58.50
BSkyB
971.50 28.50
BT
451.90
8.90
Compass
1288
8.00
Diageo
1883 45.00
GlaxoSmh♦
1452.5 16.50
Glencore
134.30
5.65
HSBC♦
448.45 19.20
Imperial Brands
3786 86.50
LlydsBkg
72.45
2.11
Natl Grid
1009 22.40
Prudential
1394 60.00
RBS
251.20 19.40
ReckittB

6873 53.00
RELX
1250 17.00
RioTinto
1964 11.50
RollsRoyce
615.00 -28.00
RylDShlA♦
1675 -5.00
SABMill
4283.5 33.50
Shire
4289
8.00
StandCh
542.80 16.60
Tesco
167.25
2.95
Vodafone
232.60
3.50
WPP
1583
0.00
United States of America ($)
21stC Fox A
28.93
0.79
3M♦

168.89
3.88
AbbottLb
39.30
1.70
Abbvie
62.71
3.02
Accenture
118.94
2.47
Adobe
100.14
3.26
AEP♦
64.31
0.51
Aetna
113.25
2.61
Aflac♦
69.56
0.83
AirProd
143.06
1.62
Alexion
150.42
7.90
Allegran

235.94
6.45
Allstate
67.68
0.53
Alphabet
747.60 25.89
Altria
63.96
1.00
Amazon
712.24
9.44
AmerAir
31.65 -0.36
AmerExpr
65.52
1.60
AmerIntGrp
58.32
1.35
AmerTower
106.06
2.05
Amgen♦
156.74
6.56
Anadarko
51.53
2.23

Anthem
130.70 -5.03
Aon Cp
108.63
3.24
Apple
100.35
5.13
ArcherDan♦
43.23
3.40

52 Week
High
Low

Yld

P/E MCap m

234.30
97.60
362.00
343.70
114.60
111.10
137.10
208.00
52.95
116.00


162.60
60.70
252.00
256.80
72.40
72.75
95.85
150.80
36.61
72.20

3.16
5.52
3.84
3.21
7.53
5.62
4.36
5.87
7.94
3.39

20.28
14.25
21.21
-8.12
10.24
10.54
12.45

13.72
18.98
12.33

22.16
28.94
76.95
103.20
86.75
283.90
99.75
572.00
435.20
22.57
307.10

15.94
12.23
65.70
67.00
55.65
229.90
76.85
452.70
288.50
14.01
194.70

5.13
2.91

3.44
2.66
2.99
5.11
4.85
2.91
5.15
-

24.54 48868.88
-5.57 27897.78
26.11 238455.59
28.10 210634.92
19.34 30889.91
26.04 186397.07
8.07 33344.21
17.11 24977.43
27.63 36979.79
11.24 59489.67
24.12 36969.45

112.00
94.50
99.70
439.50
163.00

93.10 4.51 19.32 26368.42
63.90 0.97 14.72 26343.38
72.50 4.74 8.37 37714.55

192.00 10.63 14.03 10273.05
112.50 2.95 13.69 124832.23

367.00

197.00

19.10

11.35

3606
2850
4634
3746
537.50 400.10
289.90 143.91
457.15 249.44
4357.13 3231.5
1180 917.97
502.60 404.00
1312 963.00
1964.38 1592.5
1532.1 1227.5
290.70 66.67
633.22 413.95
3898
2926
89.35 55.84
1015.5 806.40

1665.19 1045.99
370.00 204.30
7069.82
5403
1323 988.50
2923
1557
1023 497.00
1973.5
1256
4590.8
2773
5870
3423
1102.75 373.40
227.35 137.00
258.00 197.70
1690
1273
34.70
171.27
51.74
71.60
119.72
100.33
67.19
134.40
70.09
152.16
208.88

340.34
69.48
810.35
65.53
722.45
47.09
81.92
64.93
107.24
181.81
85.43
173.59
109.00
132.97
53.31

22.66
134.00
36.00
45.45
88.43
71.27
52.29
92.42
51.41
114.64
124.16
195.50
54.12
538.85

47.31
419.14
30.99
50.27
50.20
83.07
130.09
28.16
115.63
83.83
89.47
29.86

9282.12
23509.64
45327.88
16008.74
39909.28
21097.6
24226.82
25202.45
20527.2
18007.77

3.36 40.48 24600.14
4.29 17.88

41200

1.15 41.34 34137.35

4.67 25.04 74351.96
4.17 20.43 26971.12
3.49 -91.19 46019.43
7.72 -9.89 98648.43
3.57 18.26 114598.62
3.38 26.60 24410.69
2.85 15.22 65574.62
2.28 23.48 30933.07
3.00 19.16 69270.46
5.51 115.62 103412.28
9.09 -5.31 28258.03
7.84 11.03 129871.86
3.72 32.09 53055.4
3.11 -1.22 75585.5
4.25 17.59 55259.92
2.73 13.82 52423.23
-6.68 42955.86
1.88 28.53 70829.85
2.11 26.38 36904.65
7.82 -60.99 39457.25
2.29 137.28 16529.07
7.76 -78.46 104676.27
1.74 35.48 101537.34
0.42 27.41 37192.86
8.27 -9.36 26034.95
60.60 19983.36
4.82 -43.56 90303.69
2.68 17.91 29887.71
1.05 24.44 31699.35
2.52 21.32 102434.24

2.54 27.14 57737.67
3.41 18.48 101424.56
1.87 20.76 96687.86
60.55 50090.98
3.45 18.86 31596.36
0.67 16.79 39705.45
2.34 11.27 28796.94
2.34 21.61 30912.57
- 226.24 33697.11
- -37.38 93327.7
1.85 16.26 25337.17
30.95 219551.54
3.52 22.68 125132.93
- 288.91 336054.75
1.29 2.79 18299.14
1.80 12.88 62311.69
1.75-175.77 65261.97
1.74 67.59 45035.71
2.19 16.31 117745.76
1.70 -5.78 26302.28
1.96 14.45 34367.96
1.12 21.83 28778.45
2.11 11.00 549659.6
2.68 16.36 25401.17

Stock

52 Week
High
Low


Price+/-Week

AT&T
AutomData
Avago Tech
BakerHu♦
BankAm
Baxter
BB & T♦
BectonDick
BerkshHat
Biogen
BkNYMeln
BlackRock
Boeing♦
BrisMySq
CapOne
CardinalHlth
Carnival♦
Caterpillar
CBS
Celgene
CharlesSch
Charter Communications
ChevrnTx♦
Chubb
Cigna
Cisco
Citigroup

CME Grp
Coca-Cola
Cognizant
ColgtPlm
Comcast
ConocPhil♦
Corning♦
Costco
CrownCstl
CSX♦
CVS
Danaher
Deere
Delphi
Delta♦
Devon Energy
DiscFinServ
Disney
DominRes
DowChem
DukeEner♦
DuPont♦
Eaton
eBay
Ecolab
EMC
Emerson♦
EOG Res
EquityResTP
Exelon♦

ExpScripts
ExxonMb♦
Facebook
Fedex
FordMtr♦
Franklin
GenDyn
GenElectric
GenMills
GenMotors
GileadSci
GoldmSchs♦
Halliburton♦
HCA Hold
Hew-Pack
HiltonWwde♦
HomeDep
Honywell♦
HumanaInc
IBM♦
IllinoisTool
Illumina
Intcntl Exch
Intel♦
Intuit
John&John♦
JohnsonCn
JPMrgnCh
Kimb-Clark
KinderM

Kraft Heinz♦
Kroger♦
L Brands
LasVegasSd
LibertyGbl

38.99
0.54 39.72 30.97
88.04
2.57 91.00 64.29
153.30
6.57 159.65 100.00
46.04
0.71 65.90 37.58
14.88
0.36 18.48 10.99
43.31
0.39 46.95 32.18
36.35
1.27 41.90 29.95
166.99
1.99 169.08 128.87
214303 1470 221985 186900
282.79 19.13 420.99 242.07
42.27
1.20 45.45 32.20
365.09 11.08 369.76 275.00
129.22
1.83 150.59 102.10
71.31

0.54 73.06 51.82
73.83
2.90 92.10 58.49
78.15
0.74 91.23 74.73
48.60 -1.43 55.77 40.52
71.96
2.09 88.82 56.36
54.87
2.13 62.97 38.51
106.43
4.97 140.72 92.98
30.63
1.19 35.72 21.51
219.97 -13.14 233.70 156.13
102.02
2.23 104.26 69.58
127.22
1.47 128.14 96.00
128.82 -2.46 170.68 123.54
28.92
0.95 29.62 22.46
46.58
1.68 60.95 34.52
98.61
2.16 100.87 81.87
44.78
0.83 47.13 36.56
62.46 -0.48 69.80 51.22
70.59

0.57 72.72 50.84
62.88
1.12 64.99 50.01
44.33
0.75 64.99 31.05
20.51
1.00 21.29 15.42
149.08
6.39 169.73 117.03
90.80
0.88 91.97 75.71
25.89
0.07 35.67 21.33
96.94 -2.52 113.65 81.37
98.91
0.16 100.50 81.25
80.50
2.76 98.23 70.16
67.78
1.02 90.57 55.59
43.12
0.02 52.77 34.61
35.90
1.65 66.85 18.07
56.78
1.85 59.88 42.86
100.29
0.51 122.08 86.25
71.61
0.63 76.59 64.54

52.18
0.82 57.10 35.11
77.98
0.98 81.39 65.50
67.17
1.42 75.72 47.11
61.63
1.83 73.28 46.19
24.36
0.71 29.83 21.52
118.34
1.62 122.48 98.62
27.83
0.02 28.77 22.66
52.20
1.55 61.28 41.25
81.57
0.65 91.48 57.15
68.72
1.25 82.39 61.90
34.33
0.06 35.95 25.09
74.97
2.10 94.61 65.55
90.01
0.27 90.46 66.55
119.38
2.03 121.08 72.00
164.47
2.84 185.19 119.71

13.45
0.26 15.84 10.44
37.36
1.80 51.94 31.00
143.13 -1.49 153.76 121.61
30.12
0.56 32.05 19.37
62.87
0.42 65.49 47.43
31.39
0.82 36.88 24.62
85.82
3.18 123.37 81.28
159.53
5.02 218.77 139.05
42.58
1.67 46.69 27.64
77.36
0.24 95.49 43.91
13.17
1.51 15.56
8.91
20.75
0.21 29.55 16.16
133.94
2.09 137.82 92.17
114.33
1.11 116.56 87.00
173.74
4.14 219.79 155.24

152.84
5.59 173.78 116.90
105.34
2.20 106.19 78.79
143.85
3.34 242.37 127.10
270.21
7.22 271.72 220.28
31.57
1.42 35.59 24.87
107.89
4.86 108.20 79.63
113.06
0.42 115.00 81.79
44.10
1.17 54.52 33.62
65.43
1.92 70.61 50.07
128.45
2.39 138.76 103.04
17.85
0.10 42.14 11.20
84.10
1.68 86.66 61.42
35.71
1.09 42.75 27.32
67.92
4.38 101.11 60.00
46.19
1.20 57.77 34.88

37.31
0.92 58.66 30.65

BONDS: HIGH YIELD & EMERGING MARKET

Close
Prev
price
price
Gree Elec Apl
0.17
0.17
MTR
36.30
36.15
Charter Communications
219.97
219.04
BOE Tech
2.05
2.15
RollsRoyce
615.00
625.50
Bayer
85.65
85.65
Marathon Ptl
35.11
34.55

JapanTob
4312.00
4314.00
Anthem
130.70
129.61
MollerMrsk
8530.00
8700.00
ValeantPh
34.89
34.89
Wesfarmers
41.17
40.40
Williams Cos
21.48
20.81
Carnival
48.60
47.59
ValeroEngy
54.57
54.09
IM Baotou Stl
2.85
2.87
Hunng Pwr
5.03
5.04

CVS
96.94
96.95
Hitachi
483.60
479.00
Sinopec Oil
3.86
3.89
Based on the FT Global 500 companies in local currency

Day
change change %
0.00
-1.15
0.15
0.41
0.93
0.42
-0.10
-4.65
-10.50
-1.68
0.00
0.00
0.56
1.62
-2.00
-0.05
1.09

0.84
-170.00
-1.95
0.00
0.00
0.77
1.91
0.67
3.22
1.01
2.12
0.48
0.89
-0.02
-0.70
-0.01
-0.20
-0.01
-0.01
4.60
0.96
-0.03
-0.77

Week
change change %
-0.02
-8.0
-2.80
-7.2

-13.14
-5.6
-0.10
-4.7
-28.00
-4.4
-3.89
-4.3
-1.52
-4.1
-177.00
-3.9
-5.03
-3.7
-295.00
-3.3
-1.15
-3.2
-1.31
-3.1
-0.67
-3.0
-1.43
-2.9
-1.56
-2.8
-0.08
-2.7
-0.14
-2.7

-2.52
-2.5
-12.40
-2.5
-0.08
-2.0

Month's
change

Year
change

Return
1 month

Return
1 year

Month
change %
-16.91
-5.59
6.56
12.02
-8.62
-4.70
-15.13
-7.59
-9.71

-9.06
-15.96
-2.39
7.40
-1.80
-12.25
-8.65
-12.82
-5.61
-10.78
-15.16

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

INTEREST RATES: MARKET
Over
night
0.38610
-0.39857
0.48375

P/E MCap m


FT 500: BOTTOM 20

Close
Prev
price
price
L&T
1474.90
1474.15
SBI NewA
195.90
184.15
Viacom
44.24
42.53
Hew-Pack
13.17
13.04
Netflix
103.30
102.81
ICICI Bk
243.15
241.15
ChConstBk
4.94
4.86
Sberbank
133.20

132.16
Tencent
171.20
163.80
Nokia
5.06
5.02
BNP Parib
49.77
50.00
ITC
359.30
362.45
ChShenEgy
12.44
12.58
ArcherDan
43.23
43.07
ING
11.38
11.33
ChngKng
48.20
48.10
RBS
251.20
248.60
Monsanto
109.49

109.62
SK Hynix
28650.00 27000.00
BBVA
6.06
6.04
Based on the FT Global 500 companies in local currency

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

Yld

Finland (€)
Nokia
5.06
0.41
7.11
4.52 2.88 27.92 32533.3
SampoA
40.37
0.65 47.67 36.76 5.03 13.72 25111.32
France (€)
Airbus Grpe

56.02
1.61 68.50 49.96 2.23 18.40 48613.07
AirLiquide
97.73
0.56 123.65 90.77 2.53 19.80 37467.57
AXA
22.71
1.47 26.02 18.80 4.05 10.20 61370.48
BNP Parib
49.77
4.05 61.00 37.00 3.14 9.08 69044.75
ChristianDior 146.25 -0.80 195.35 140.80 2.12 17.68 29584.88
Cred Agr♦
9.09
0.25 14.48
7.59 4.01 7.02 26712.05
Danone
63.13
2.78 66.50 51.73 2.30 31.05 46091.68
EDF
12.24
0.69 22.82
9.13 9.50 6.92 26173.21
Engie SA
13.89
0.59 18.91 12.96 6.97 -7.21 37640.03
Esslr Intl♦
118.25
3.70 125.15 95.01 0.83 34.96 28495.04
Hermes Intl

324.50
5.60 365.55 281.20 0.88 36.23 38133.55
LOreal
166.90
6.25 178.95 140.40 1.57 29.53 104593.89
LVMH
145.05
0.85 176.60 130.75 2.20 21.18 81879.44
Nmrcble-SFR
27.95 -0.25 56.64 25.57 - -35.52 13634.95
Orange
15.47
0.26 16.98 12.21 3.75 21.31 45600.27
PernodRic
98.24
3.42 114.90 88.00 1.77 28.16 29025.45
Renault
83.94
4.05 99.04 59.59 2.19 8.43 27631.69
Safran
62.96
2.98 72.45 48.87 1.91 -64.07 29227.12
Sanofi
73.80
2.62 101.10 66.44 3.74 22.83 105714.58
Sant Gbn
40.06
1.28 44.84 31.47 1.50 62.71 25010.95
Schneider
58.30

2.05 71.35 45.32 3.19 24.49 38206.96
SocGen
36.95
2.28 48.77 26.61 3.38 7.80 33219.45
Total
43.90
0.90 47.61 35.21 5.68 27.83 121130.31
UnibailR
245.00
9.30 257.85 212.05 3.79 10.88 27027.77
Vinci
68.18
2.17 68.18 50.08 2.54 19.22 45098.94
Vivendi
17.90
0.58 24.83 16.30 17.45 15.05 27262.72
Germany (€)
Allianz
146.75
9.00 170.00 126.55 4.52 10.42 74653.25
BASF
69.92
2.63 87.24 56.01 4.17 14.72 71486.65
Bayer
85.33 -4.21 138.00 83.45 2.75 16.10 78547.84
BMW
75.16
3.46 105.45 66.00 4.02 7.31 50365.63
Continental
191.60

6.55 231.90 171.30 1.77 13.12 42657.26
Daimler
60.68
2.85 89.57 56.19 5.58 7.98 72263.3
Deut Bank
16.29
1.15 32.31 13.03 4.79 -2.95 25003.02
Deut Tlkm♦
15.90 -0.01 17.57 13.39 3.27 12.48 81508.03
DeutsPost
26.68
0.81 29.27 19.55 19.21 36010.7
E.ON
8.90
0.59 13.79
7.08 1.64 -2.41 19828.47
Fresenius Med
78.34
3.59 83.17 63.10 1.00 24.97 26711.91
Fresenius SE
68.03
3.04 70.00 52.39 0.67 25.57 41327.6
HenkelKgaA
92.06
0.58 95.37 75.76 1.46 19.43 26623.04
Linde
133.85
6.25 182.55 113.50 2.45 20.71 27673.39
MuenchRkv
169.45

9.70 193.65 154.65 4.43 9.35 31470.71
SAP
72.77
3.33 75.75 53.91 1.57 25.99 99513.83
Siemens
98.69
4.69 100.90 77.91 3.24 16.19 93378.42
Volkswgn
140.05
4.55 228.95 95.00 3.32 -45.85 46003.59
Hong Kong (HK$)
AIA
44.85
2.15 53.50 36.85 1.14 26.54 69586.29
BOC Hold
23.25
1.05 33.30 18.82 4.79 10.32 31652.37
Ch OSLnd&Inv♦
23.05
1.30 29.60 20.45 2.37 6.42 29266.3
ChngKng♦
48.20
3.75 77.55 38.20 0.72 10.94 23870.79
Citic Ltd
11.08
0.18 15.40 10.02 2.69 6.91 41503.08
Citic Secs
16.20
0.72 34.75 12.82 2.16 8.87 6087.57
CK Hutchison♦

90.35
1.90 124.70 87.95 4.09 7.68 44902.81
CNOOC
9.44
0.40 12.64
6.41 5.80 17.57 54270.32
HangSeng♦
137.20
4.80 162.10 121.10 4.06 9.60 33775.4
HK Exc&Clr♦ 182.30
4.60 309.00 160.10 2.85 27.63 28368.76
MTR♦■
36.30 -2.80 39.25 33.10 2.87 16.46 27472.67
SandsCh
28.95
1.70 37.55 20.75 6.83 20.79 30081.75
SHK Props
89.25
3.00 135.00 79.00 2.67 8.60 33270.41
Tencent♦
171.20 14.00 171.80 124.00 0.21 42.60 207379.53
India (Rs)
Bhartiartl
351.25
9.30 452.45 282.30 0.64 25.65 20944.78
HDFC Bk
1186.8 45.90
1190 928.00 0.68 26.16 44776.35
Hind Unilevr 861.20 48.80 944.00 766.40 1.65 40.50 27799.1
HsngDevFin 1255.55 76.00 1372.4 1011.45 1.20 21.25 29595.25

ICICI Bk
243.15 23.05 321.00 180.75 2.07 11.01 21094.91
Infosys
1247.5 45.90
2064 932.65 3.36 20.38 42743.82
ITC
359.30 28.95 364.00 268.00 1.76 28.38 43130.53
L&T
1474.9 219.80
1888 1016.05 1.02 27.25 20501.41
OilNatGas
213.00 -0.10 337.20 187.75 4.58 9.42 27183.62
RelianceIn
974.70 40.50 1089.75 818.00 1.03 10.73 47127.05
SBI NewA
195.90 24.55 291.80 148.25 1.80 9.47 22684.78
SunPhrmInds 824.95 33.60 979.00 704.00 0.37 50.78 29616.3
Tata Cons
2572.65 43.35
2770
2115 1.56 23.34 75617.69
Indonesia (Rp)
Bk Cent Asia
13000 25.00 14400 11000 1.15 18.20 23596.82
Israel (ILS)
TevaPha♦
196.20 -2.80 275.90 189.40 2.69 25.96 52313.94
Italy (€)
Enel
4.10

0.11
4.50
3.33 3.56 16.40 46377.34
ENI
13.83
0.43 16.99 10.93 7.23 -5.27 55947.88
Generali
13.12
0.37 18.29 10.90 4.76 10.19 22781.4
IntSPaolo
2.36
0.04
3.65
2.12 3.09 14.80 41593.16
Luxottica
48.95 -0.96 67.80 46.58 1.42 30.32 26358.43
Unicred
2.99 -0.02
6.61
2.76 4.18 10.21 20534.26

FT 500: TOP 20

May 27
US
US
US
Euro
UK
Japan

Switzerland

52 Week
High
Low

Bid
yield

Mth's Spread
chge
vs
yield
US

May 27
High Yield US$
Navient Corporation

S*

F*

Bid
price

06/18

8.45


BB-

Ba3

BB

108.25

4.24

-0.01

-0.52

3.35

High Yield Euro
Kazkommerts Intl BV

02/17

6.88

B

Caa1

B

97.50


-

0.00

0.00

-

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

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

10/26

11.40
8.00
11.00
7.13
7.13
4.38
12.50
5.00
6.25
4.88

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

A3
Ba2
Ba1
A3
A3
Baa2
Ba2
A2

Baa3
Baa3

BBB+
BB
BBBBBB+
BBB+
BBB
BB
ABBBBBB-

106.80
105.03
117.55
128.75
114.01
103.86
106.53
117.38
110.09
100.55

1.49
4.78
2.56
1.95
2.60
3.57
10.91
2.80

4.45
4.86

0.03
0.03
0.00
0.00
0.00
0.00
0.05
0.00
0.00
0.00

0.01
0.10
-0.28
0.00
0.20
0.17
0.06
0.00
0.32
0.32

0.44
3.89
1.67
1.06
0.84

2.21
9.55
1.44
3.09
3.03

Emerging Euro
Brazil
02/15
7.38
BBBBaa2
BBB 111.75
0.73
0.00
0.00
0.09
Mexico
07/17
4.25
BBB+
A3
BBB+ 111.13
1.50
0.00
0.00
0.61
Mexico
02/20
5.50
BBB+

A3
BBB+ 121.63
2.06
0.00
0.00
0.70
Bulgaria
09/25
5.75
BB+
BBB- 118.19
3.48
0.00
-0.22
1.65
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.

VOLATILITY INDICES
Index

Day's
change

Markit IBoxx
ABF Pan-Asia unhedged
Corporates( £)
Corporates($)
Corporates(€)
Eurozone Sov(€)

Gilts( £)
Global Inflation-Lkd
Markit iBoxx £ Non-Gilts
Overall ($)
Overall( £)
Overall(€)
Treasuries ($)

180.15
308.20
260.82
217.48
232.85
301.95
248.32
307.62
232.92
300.88
227.41
223.51

0.26
0.30
-0.05
0.15
0.33
0.36
0.15
0.27
-0.08

0.34
0.25
-0.10

-2.20
0.72
-0.54
0.13
1.05
1.33
-0.73
0.86
-0.27
1.19
0.79
-0.11

3.96
4.41
4.55
2.93
3.35
5.26
4.19
4.30
3.51
4.98
3.04
3.10


-1.81
1.09
-0.54
-0.02
0.99
1.39
0.64
1.14
-0.27
1.32
0.71
-0.11

0.02
3.80
4.55
1.98
4.22
6.45
0.42
3.87
3.51
5.67
3.44
3.10

FTSE
Sterling Corporate (£)
Euro Corporate (€)
Euro Emerging Mkts (€)

Eurozone Govt Bond

112.66
108.15
874.56
116.08

0.05
0.10
-0.28
0.07

-

-

1.07
0.10
-6.98
1.06

-0.68
-0.77
-14.80
1.30

Index

Day's
change


Week's
change

Month's
change

Series
high

Series
low

305.52
70.78
65.80
88.71

0.07
-0.19
-0.90
-0.35

-26.75
-7.43
-5.10
-8.49

3.61
0.10

-1.87
1.59

339.86
82.07
93.03
102.83

288.69
67.59
64.39
80.36

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

Markit CDX
Emerging Markets 5Y
298.89
-0.77
-6.76
21.52
313.33
271.25
Nth Amer High Yld 5Y
431.68

3.01
-31.86
3.34
463.54
415.17
Nth Amer Inv Grade 5Y
77.04
-0.11
-8.04
0.77
85.25
72.99
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
May 26
May 26
Prev
return
stock
Market
stocks
Can 4.25%' 21
126.54
-0.493

-0.451
0.75
5.18
74121.72
7
Fr 2.25%' 20
114.30
-1.090
-1.117
0.27
20.31 227523.12
15
Swe 0.25%' 22
111.89
-1.396
-1.392
1.11
29.90 242547.22
8
UK 2.5%' 20
360.04
-1.520
-1.495
0.20
6.58 514814.74
27
UK 2.5%' 24
342.52
-1.035
-1.006

1.08
6.82 514814.74
27
UK 2%' 35
234.16
-0.866
-0.847
1.83
9.08 514814.74
27
US 0.625%' 21
104.34
-0.214
-0.164
-0.33
35.84 1150433.02
37
US 3.625%' 28
136.70
0.451
-0.164
-0.52
16.78 1150433.02
37
Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total market
value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
amount.

BONDS: TEN YEAR GOVT SPREADS
Bid

Yield

Spread Spread
vs
vs
Bund T-Bonds

Australia
2.39
2.24
0.55 Italy
Austria
0.50
0.36 -1.34 Japan
Belgium
0.51
0.37 -1.32 Netherlands
Canada
1.35
1.20 -0.49 Norway
Denmark
0.39
0.24 -1.45 Portugal
Finland
0.41
0.27 -1.42 Spain
France
0.48
0.33 -1.36 Switzerland
Germany

0.14
0.00 -1.69 United Kingdom
Greece
7.17
7.02
5.33 United States
Ireland
0.77
0.63 -1.06
Data provided by SIX Financial Information & Tullett Prebon Information

Bid
Yield
1.44
-0.12
0.23
1.38
3.03
1.50
-0.32
1.56
1.84

Spread Spread
vs
vs
Bund T-Bonds
1.30
-0.26
0.08

1.24
2.89
1.35
-0.46
1.42
1.69

-0.39
-1.95
-1.61
-0.45
1.19
-0.34
-2.15
-0.27
0.00

Stock

4.96 16.26 240022.44
2.36 27.27 40105.28
1.10 29.52 59855.67
1.50 -8.43 20161.55
1.37 11.75 152846.1
2.03 6.42 23918.5
3.02 13.98 28439.48
1.53 43.91 35435.61
14.13 172869.23
17.09 61945.57
1.64 15.03 45528.28

2.46 19.02 59643.56
3.01 17.17 82314.58
2.14 74.84 119038.3
2.20 10.57 37808.3
2.01 18.35 25462.47
2.48 19.45 27319.86
4.25 37.33 42016.84
1.11 17.42 22788.24
50.86 82440.84
0.80 27.32 40483.4
- -57.97 24739.61
4.27 145.12 192277.34
2.14 17.30 59090.95
0.03 15.57 33044.02
3.07 14.43 145459.27
0.44 9.13 136709
2.17 25.53 33393.27
3.04 26.59 193727.18
22.38 37842.61
2.19 45.72 63038.12
1.66 18.72 152028.2
5.64 -8.78 54897.71
2.45 54.97 22055.4
1.13 27.22 65451.35
3.82 71.71 30650.42
2.83 13.22 24747.4
1.55 20.66 104115.7
0.58 24.43 68118.87
2.97 16.17 25383.72
1.56 15.60 18502.38

1.17 7.11 33271.06
2.72 -1.08 18811.6
2.01 10.75 23406.15
1.39 18.16 162714.58
3.75 22.23 44127.39
3.43 10.13 58589.16
4.26 19.47 53720.72
2.47 28.21 58673.8
3.66 14.69 28226.54
14.58 27987.31
1.17 34.95 34709.74
1.68 26.66 54357.46
3.68 17.45 33582.92
0.84 -9.08 44886.06
3.20 6.03 25117.31
3.67 17.52 30461.49
19.39 47421.22
3.30 28.47 373236.49
72.12 275990.46
0.61 44.36 44147.66
4.54 6.10 52481.67
1.80 13.31 21853.04
2.50 15.17 43747.25
3.11 46.95 276973.19
2.94 24.41 37370.02
4.73 4.66 48335.12
2.04 7.21 114296.92
1.66 17.74 66267.81
1.72 -14.69 36587.5
14.33 30251.93

4.98 5.24 22740.08
1.03 12.91 20537.69
1.83 23.56 166622.34
1.98 18.24 87132.66
0.68 23.84 25893.63
3.46 11.31 146720.57
2.06 19.87 37856.07
50.84 21174.72
1.17 22.81 32167.32
3.16 13.21 148928.36
1.06 39.28 27605.95
2.70 20.28 310987.84
2.54 66.49 28593.12
2.74 10.90 239255.19
2.82 42.32 46258.42
9.14 524.78 39833.27
2.75 154.16 102261.83
1.14 16.66 34059.72
3.03 15.62 19493.31
5.88 20.39 36708.06
- -33.42 9448.14

52 Week
High
Low

Price+/-Week

Lilly (E)♦
74.99

0.18 92.85
Lockheed♦
240.09
0.02 245.37
Lowes
80.35
0.53 80.69
Lyondell♦
81.40
0.96 106.50
Marathon Ptl♦
35.11 -1.52 60.38
Marsh&M
65.93
1.73 66.09
MasterCard
97.18
1.71 101.76
McDonald's
123.25
0.69 131.96
McKesson
181.22 -1.07 239.62
Medtronic
81.69
1.17 82.00
Merck
56.48
1.37 61.70
Metlife♦

45.77
1.16 58.23
Microsoft♦
52.32
1.70 56.85
Mnstr Bvrg
150.51
2.61 160.50
MondelezInt
44.78
1.42 48.58
Monsanto
109.49
7.97 120.00
MorganStly
27.53
0.76 41.04
MylanNV
43.06
1.55 74.66
Netflix
103.30 10.81 133.27
NextEraE♦
119.84
0.51 121.51
Nike
56.19 -0.29 68.20
NorfolkS♦
84.00 -1.44 98.75
Northrop

214.42
1.70 218.84
NXP
92.12
3.73 114.00
Occid Pet
76.15
1.19 79.86
Oracle
40.07
0.66 45.24
Pepsico
101.96
1.86 106.94
Perrigo♦
96.61
2.83 198.42
Pfizer♦
34.61
0.87 36.46
Phillips66♦
80.63
2.73 94.12
PhilMorris
99.18
1.14 102.55
PNCFin
90.24
2.05 100.52
PPG Inds♦

108.60
2.39 118.69
Praxair
110.77
0.69 124.17
Priceline
1273 23.71 1476.52
ProctGmbl
81.43
1.41 83.87
Prudntl♦
79.54
1.87 92.60
PublStor
255.23
2.85 277.60
Qualcomm♦
55.27
0.75 71.32
Raytheon
130.22
0.88 132.43
Regen Pharm 396.22 10.22 605.93
ReynoldsAm
50.13
0.52 52.54
S&P Global♦ 111.47
3.40 112.00
Salesforce
83.77

2.75 84.48
Schlmbrg♦
77.17
2.21 92.61
Sempra Energy 105.35
1.72 108.36
Shrwin-Will♦ 291.79
2.18 309.00
SimonProp♦
197.77
2.64 214.80
SouthCpr
26.61 -0.09 31.35
Starbucks
55.15
0.53 64.00
StateSt
63.33
1.90 81.26
Stryker
111.77
1.52 113.85
Sychrony Fin
31.16
1.28 36.40
Target♦
68.90
0.24 85.81
TE Connect♦
59.64

1.81 70.00
Telsa Mtrs
223.04
2.76 286.65
TexasInstr
61.02
2.49 61.08
TheTrvelers
114.18
2.29 118.28
ThrmoFshr
152.13
3.28 152.17
TimeWrnr♦
75.28
2.48 91.34
TJX Cos♦
76.65
1.21 79.20
T-MobileUS
42.54
0.84 43.43
UnionPac♦
82.97
0.56 103.18
UPS B♦
102.98
1.47 107.32
USBancorp
42.95

1.21 46.26
UtdHlthcre
134.00
3.06 135.11
UtdTech♦
100.76
1.66 119.12
ValeroEngy♦
54.57 -1.56 73.88
Verizon
50.62
0.96 54.49
VertexPharm
90.38
5.68 143.45
VF Cp
62.40
0.96 77.40
Viacom
44.24
5.19 69.17
Visa Inc♦
79.66
1.99 81.73
Walgreen♦
77.00 -0.22 97.30
WalMartSto
70.75
0.89 75.51
WellsFargo♦

50.85
2.10 58.77
Williams Cos
21.48 -0.67 61.38
Yahoo
37.82
1.32 43.78
Yum!Brnds
82.59
2.99 93.33
Venezuela (VEF)
Bco de Vnzla 115.00
0.00 143.95
Bco Provncl
3750 -100.00
4400
Mrcntl Srvcs
5500 150.00
6200

Yld

P/E MCap m

67.88 2.73 33.86 82776.74
181.91 2.67 20.89 73096.13
62.62 1.37 28.59 72109.19
69.10 3.90 8.38 34735.59
29.24 3.50 9.45 18602.5
50.81 2.34 21.59 34364.9

74.61 0.73 28.74 104790.65
87.50 2.87 23.32 108195.94
148.29 0.61 18.11 40778.22
55.54 1.82 46.64 114451.22
45.69 3.28 33.99 156338.07
35.00 3.33 9.67 50285.97
39.72 2.60 39.59 411259.63
113.08 42.10 30559.95
35.88 1.50 9.50 69501.28
81.22 1.97 33.62 47830.16
21.16 2.22 11.87 53326.28
37.59 27.03 21890.31
79.95 - 351.02 44243.27
93.74 2.70 19.69 55299.68
47.25 1.12 24.84 74815.3
64.51 2.86 15.20 24841.98
152.31 1.52 19.15 38692.44
61.61 20.34 31873.78
58.22 4.01 -6.90 58158.91
33.13 1.57 18.84 166285.09
76.48 2.80 28.63 147272.76
84.85 0.48 99.16 13836.74
28.25 3.35 27.95 209904.44
69.79 2.83 11.86 42377.63
76.54 4.16 22.94 153854.4
77.67 2.30 12.08 45058.97
82.93 1.35 20.15 28894.49
95.60 2.66 21.08 31598.79
954.02 24.64 63190.93
65.02 3.31 26.06 216754.6

57.19 3.27 7.25 35156.68
182.08 2.71 40.28 44252.3
42.24 3.53 17.21 81186.94
95.32 2.14 20.02 38672.74
348.96 61.82 40876.22
35.39 2.99 10.42 71552.62
78.55 1.23 26.02 29494.96
52.60 - -4391.54 56754.18
59.60 2.64 60.23 96642.63
86.72 2.76 21.12 26284.48
218.27 0.99 25.21 26989.15
170.99 3.21 34.10 61191.79
21.55 1.03 32.21 20588.35
42.05 1.33 32.06 80789.24
50.73 2.18 14.23 25074.9
86.68 1.32 25.79 41799.87
23.74 11.41 25984.96
65.50 3.19 13.08 41062.25
51.70 2.25 19.25 21328.23
141.05 - -28.02 31640.37
43.49 2.40 20.96 61277.93
95.21 2.17 10.54 33385.62
117.10 0.40 30.05 59865.02
55.53 1.96 15.01 59199.76
63.53 1.08 22.31 50768.82
33.23 28.64 34975.77
67.06 2.70 15.26 69780.62
87.30 2.93 18.44 71102.67
37.07 2.42 13.34 74149.01
95.00 1.52 21.19 127407.75

83.39 2.58 22.42 84322.59
51.68 3.54 7.45 25637.13
38.06 4.51 11.31 206341.7
75.90 - -53.94 22355.48
52.21 2.25 21.97 26021.94
30.11 3.68 7.80 15327.23
60.00 0.66 27.76 151735.65
71.50 1.93 23.93 84333.92
56.30 2.85 15.02 222461.71
44.50 3.00 12.29 258167.87
10.22 11.88 -22.43 16122.23
26.15 -7.82 35925.94
64.58 2.14 26.85 33650.53
64.00
2200
4300

0.66
0.21 21.79

1022.66
830.99
671.42

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


May 27
US$
Halliburton Company
Cummins Inc.
Korea Electric Power Corporation
Archer Daniels Midland Company
FleetBoston Financial Corp.
SunTrust Banks, Inc.
Euro
Credit Agricole S.A.
Electricite de France (EDF)
BHP Billiton Fin Ltd
B.A.T. Netherlands Fin B.V. (Re - British American Tobacco)
Yen
Wal-Mart Stores, Inc.
£ Sterling
IPIC GMTN Limited
B.A.T. Intl Fin plc (Re - British American Tobacco)

Red
date Coupon

Ratings
M*

Bid
yield

Day's

chge
yield

Mth's Spread
chge
vs
yield
US

F*

Bid
price

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

6.75
6.75
6.75
6.75
6.88
6.00

A
A+

AAA
BBB
BBB+

A2
A2
Aa2
A2
Baa3
Baa1

AA
AAA
AA-

124.17
124.27
102.86
124.76
122.10
116.78

3.99
3.99
6.49
4.08
4.47
4.21

0.00

0.00
0.00
0.00
0.00
0.00

-0.02
0.25
-0.01
-0.06
0.03
-0.34

2.15
2.15
4.65
2.25
-

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

2.63
4.13
3.25
3.13

BBB

A+
A+
A-

Baa3
A2
A3
A3

AA
A+
A-

100.15
122.21
115.00
116.96

2.61
1.91
1.77
1.64

0.00
0.00
0.00
0.00

0.09
0.00

0.16
-0.02

0.77
0.07
-0.06
-

07/15

0.94

NR

WR

NR

100.00

0.31

0.00

0.00

-

03/26
09/26


6.88
4.00

AA
A-

Aa2
A3

AA
A-

122.65
104.67

4.11
3.47

0.06
0.06

0.12
0.29

1.82
1.18

S*


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

GILTS: UK CASH MARKET

May 26
Day Chng
Prev
52 wk high
52 wk low
VIX
13.43
-0.47
13.90
53.29
10.88
VXD
12.81
-0.33
13.14
56.32
7.76
VXN
14.71
-0.30
15.01
46.72
12.06
VDAX
19.15
0.41

18.74
32.55
16.71
† CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility.
‡ Deutsche Borse. VDAX: DAX Index Options Volatility.

BONDS: BENCHMARK GOVERNMENT
Red
Bid
Date Coupon
Price
Australia
10/18
3.25 103.79
11/27
2.75 103.62
Austria
10/19
0.25 99.98
10/26
0.75 102.54
Belgium
06/18
0.75 101.71
06/26
1.00 104.76
Canada
08/18
0.50 99.70
06/26

1.50 101.42
Denmark
11/18
0.25 101.68
11/25
1.75 112.63
Finland
05/18
1.00 99.79
04/26
0.50 100.83
France
05/19
1.00 104.18
11/20
0.25 102.27
05/26
0.50 100.22
05/45
3.25 142.90
Germany
04/19
0.50 102.96
10/20
0.25 103.03
02/26
0.50 103.44
08/46
2.50 143.78
Greece

07/17
3.38 96.46
02/26
3.00 75.76
Ireland
10/17
5.50 108.17
05/26
1.00 102.18
Italy
04/19
0.10 100.10
06/21
0.45 100.06
06/26
1.60 101.50
03/47
2.70 103.15
Japan
05/18
0.10 100.67
05/21
0.05 101.31
03/26
0.10 102.16
03/46
0.80 113.38
Netherlands
01/19
1.25 104.53

07/25
0.25 100.21
New Zealand
03/19
5.00 107.88
04/27
4.50 118.20
Norway
05/19
4.50 111.42
02/26
1.50 101.04
Portugal
06/19
4.75 111.06
07/26
2.88 98.66
Spain
01/19
0.25 100.63
04/26
1.95 104.15
Sweden
10/18
1.00 99.64
05/25
2.50 117.21
Switzerland
05/19
3.00 111.50

05/26
1.25 115.95
United Kingdom
07/18
1.25 101.68
01/21
1.50 102.62
07/26
1.50 99.41
12/46
4.25 145.02
United States
04/18
0.75 99.73
04/21
1.38 100.06
05/26
1.63 98.09
05/46
2.50 97.05
Data provided by SIX Financial Information & Tullett Prebon Information

P/E MCap m

BONDS: GLOBAL INVESTMENT GRADE
Day's
chge
yield

Ratings

M*

Red
date Coupon

Yld

Bid Day chg Wk chg Month
Year
Yield
yield
yield chg yld chg yld
1.63
0.01
-0.01
-0.25
-0.35
2.39
0.00
-0.05
-0.25
0.00
0.26
0.00
0.00
0.00
0.00
0.50
-0.01
-0.04

0.00
0.00
-0.10
0.00
0.00
0.00
0.00
0.51
-0.01
-0.04
-0.17
0.00
0.64
0.01
0.00
0.00
0.00
1.35
0.02
0.00
-0.16
0.00
-0.43
0.00
0.00
0.00
0.00
0.39
0.00
-0.05

-0.13
-0.30
1.11
0.00
-0.01
0.08
-0.02
0.41
-0.01
-0.04
0.00
0.00
-0.39
0.00
0.00
0.00
0.00
-0.25
0.00
0.00
0.00
0.00
0.48
0.00
-0.03
-0.16
0.00
1.43
0.00
-0.04

-0.19
-0.21
-0.52
0.00
0.00
0.00
0.00
-0.43
0.00
0.00
0.00
0.00
0.14
0.00
-0.02
-0.13
0.00
0.85
0.00
-0.03
-0.16
-0.31
6.73
0.15
-2.39
-2.62 -16.10
7.17
0.05
-0.22
-1.24

-3.71
-0.38
0.00
0.00
0.00
0.00
0.77
0.00
-0.07
-0.20
0.00
0.06
0.01
-0.03
-0.04
0.00
0.44
0.00
-0.07
-0.10
0.00
1.44
-0.01
-0.12
-0.13
0.00
2.57
-0.01
-0.12
-0.09

0.00
-0.24
0.00
0.00
0.00
0.00
-0.21
0.00
0.00
0.00
0.00
-0.12
0.00
0.00
0.00
0.00
0.31
-0.01
-0.02
0.00
0.00
-0.46
0.00
0.00
0.00
0.00
0.23
0.00
-0.03
-0.16

-0.50
2.08
-0.02
-0.10
-0.05
-1.05
2.57
-0.04
-0.13
-0.28
-1.11
0.62
-0.01
0.00
-0.01
-0.32
1.38
-0.03
-0.02
-0.10
0.00
1.03
0.04
-0.06
-0.13
0.18
3.03
0.02
-0.07
0.00

0.00
0.01
0.01
-0.01
-0.01
0.00
1.50
0.00
-0.08
-0.11
0.00
1.16
0.00
0.01
0.10
0.00
0.53
-0.01
-0.02
-0.12
-0.19
-0.84
0.00
0.00
0.00
0.00
-0.32
0.00
0.00
0.00

0.00
0.46
0.01
0.02
-0.06
-0.47
0.92
0.03
0.03
-0.05
0.00
1.56
0.02
-0.02
-0.17
0.00
2.21
0.00
-0.08
-0.15
-0.29
0.89
0.02
0.01
0.11
0.00
1.36
0.01
0.00
0.07

0.00
1.84
0.00
-0.01
0.00
0.00
2.64
0.00
0.01
0.00
0.00

Red
52 Week
Amnt
Change in Yield
May 27
Price £
Yield
Day
Week
Month
Year
High
Low
£m
Tr 4pc '16
100.96
0.42
0.00

0.00
5.00
-14.29 102.23 100.00
0.35
Tr 1.75pc '17
100.87
0.39
0.00
-2.50
-13.33
-25.00 102.05 100.87
0.29
Tr 5pc '18
108.25
0.32
6.67
3.23
-13.51
-56.76 111.74 108.25
0.35
Tr 4.5pc '19
111.08
0.47
4.44
4.44
-12.96
-53.92 112.97 111.04
0.36
Tr 4.75pc '20
115.11

0.68
3.03
1.49
-6.85
-45.16 117.12 114.45
0.33
Tr 1.5pc '21
102.64
0.92
3.37
2.22
-6.12
-35.21 138.06
99.91
0.26
Tr 4pc '22
117.04
0.96
3.23
1.05
-5.88
-36.42 119.14 113.65
0.38
Tr 5pc '25
130.32
1.33
2.31
-0.75
-10.14
-27.32 132.97 124.47

0.35
Tr 4.25pc '27
127.65
1.61
1.26
-1.83
-8.52
-21.84 130.43 119.79
0.31
Tr 4.25pc '32
131.35
1.96
1.03
-2.49
-6.67
-15.88 134.41 121.93
0.35
Tr 4.25pc '36
133.98
2.13
0.47
-2.29
-6.58
-12.70 137.18 123.52
0.29
Tr 4.5pc '42
145.64
2.22
0.45
-2.63

-6.72
-11.55 148.39 132.20
0.26
Tr 3.75pc '52
140.85
2.12
0.00
-3.64
-7.42
-15.54 142.78 121.95
0.23
Tr 4pc '60
155.52
2.06
0.00
-4.19
-7.62
-16.60 157.42 131.72
0.22
xd Ex dividend. Closing mid-prices are shown in pounds per £ 100 nominal of stock. Red yield: Gross redemption yield.
This table shows the gilts benchmarks & the non-rump undated stocks.

GILTS: UK FTSE ACTUARIES INDICES
Price Indices
Fixed Coupon
1 Up to 5 Years
2 5 - 10 Years
3 10 - 15 Years
4 5 - 15 Years
5 Over 15 Years

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

Day's
chg %
-0.05
-0.14
-0.19
-0.16
-0.14
-0.12

May 27
98.21
182.48
210.56
189.13
314.72
177.04
May 27
308.98

586.68
436.30
726.57
541.09
May 27
0.83
1.55
2.01

Day's
chg %
-0.04
-0.52
-0.20
-0.64
-0.45

May 26
0.80
1.52
1.99

Yr ago
1.31
1.98
2.34

Total
Return
2397.05

3355.17
3986.93
3508.41
4636.27
3370.10

Month
chg %
-0.10
3.01
1.01
3.81
2.56

Return
1 month
0.23
0.96
1.90
1.25
3.60
1.87

Year's
chg %
-1.00
2.96
1.01
3.76
2.38


20 Yrs
45 Yrs

inflation 0%
May 27
Dur yrs Previous
Yr ago
May 27
Real yield
Up to 5 yrs
-1.23
1.98
-1.25
-0.92
-1.85
Over 5 yrs
-0.92
23.64
-0.94
-0.78
-0.95
5-15 yrs
-0.91
9.26
-0.93
-0.78
-1.03
Over 15 yrs
-0.92

29.20
-0.94
-0.78
-0.94
All stocks
-0.92
20.67
-0.94
-0.79
-0.96
See the FTSE website for more details: />
Total
Return
2381.99
4344.52
3335.03
5275.58
4061.70
May 27
2.20
2.08

Return
1 year
2.11
5.26
6.99
5.74
9.86
6.16


Yield
0.64
1.18
1.71
1.41
2.14
1.89

Return
1 month
0.04
3.16
1.25
3.93
2.71

Return
1 year
0.79
3.65
2.08
4.31
3.24

May 26
2.18
2.08

Yr ago

2.50
2.53

inflation 5%
Dur yrs Previous
1.98
-1.89
23.73
-0.97
9.27
-1.06
29.24
-0.96
20.80
-0.98

Yr ago
-1.59
-0.82
-0.88
-0.81
-0.83

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


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



★

Monday 30 May 2016

23

FINANCIAL TIMES

FINANCIAL TIMES SHARE SERVICE
Main Market
52 Week
High
Low

Price +/-Week

Yld

P/E

Vol
000s

0.83
4.29
2.62
6.57
3.63

2.29
2.67
2.57

14.50
16.68
-57.93
-49.15
16.99
137.28
18.93
49.07

24.8
5973.3
450.9
2390.8
651.2
4012.8
480.5
78.9

Aerospace & Defence
AvonRub
BAE Sys♦
Chemring
Cobham
Meggitt
RollsRoyceX
Senior♦

UltraElc

882.50
483.00
137.00
164.40
388.50
615.00
217.20
1748

-20.50
-0.50
4.75
3.10
8.60
-28.00
10.20
14.00

1180
535.89
240.45
309.10
517.00
1023
327.80
2044

705.50

419.30
113.75
146.30
337.60
497.00
189.50
1627

15.84
374.90

10.44 4.54 6.10 17248.2
245.80 3.11 23.34 2900.0

Automobiles & Parts
FordMtr $X♦
GKN

13.45
273.40

0.26
-1.80

Banks
ANZ A$X♦
BcoSant
BnkGeorgia
BankIre €
BkNvaS C$X

BarclaysX
CanImp C$X
HSBCX♦
LlydsBkgX
RylBkC C$X
RBSX
StandChX
..7.375%Pf
..8.25%Pf
TntoDom C$X
VirginMoney
Westpc A$X♦

25.85
335.75
2577
0.27
65.00
186.20
102.19
448.45
72.45
80.55
251.20
542.80
111.50
124.50
57.67
378.00
30.98


0.94 33.86
15.00 514.00
178.00
2650
0.02
0.39
1.90 66.99
10.35 289.90
0.75 104.30
19.20 633.22
2.11 89.35
2.70 80.85
19.40 370.00
16.60 1102.75
-1.00 126.75
0.00 140.50
1.17 58.13
22.00 472.90
0.84 35.15

21.86
238.69
1538
0.23
51.17
143.91
82.19
413.95
55.84

64.52
204.30
373.40
99.00
109.00
47.75
267.30
27.69

10.88
7.11
1.90
4.05
3.49
4.61
7.84
3.11
4.07
8.27
6.61
6.63
3.74
0.37
9.35

10.71 12227.9
10.86 348.6
10.12
49.4
13.04 26127.5

12.04 2687.3
-91.19 27230.0
10.79 1228.2
11.03 17597.1
-1.22 133488.8
11.70 2574.7
-6.68 11925.4
-9.36 5128.8
52.2
60.4
12.65 3394.3
16.65 295.1
12.06 7244.9

Basic Resource (Ex Mining)
Ferrexpo
Mondi

32.50
1359

1.25 81.25
20.00 1614.36

12.50 13.78 8.51
1108 2.35 14.90

361.1
882.0


138.00 83.45 2.75 16.10
159.75 105.00 1.77 51.80
3262.5 2729.11 2.35 21.53
312.40 196.90 2.71 15.13
435.20 288.50 2.91 27.63
374.80 272.66 2.21 20.57
2142 1275.58 3.22 15.56

3574.2
12.7
295.6
678.8
282.5
348.5
130.9

221.83
245.00
91.00
2101
1824
1105
1520
26.07
76.00
379.80
865.00
227.60
44.84
337.25


88.4
823.9
22.7
1234.6
106.3
77.4
62.3
54.8
61.6
134.9
3.4
22.4
1558.0
12.7

Chemicals
Bayer €X
Carclo
Croda♦■
Elemntis
Syngent SFrX
Synthomer
Victrex

85.33
155.00
2950
209.80
395.00

362.80
1456

-4.21
3.00
-20.00
4.60
-1.00
19.90
-5.00

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

152.00
207.50
83.63

2082
1404
949.50
1250
25.33
57.00
329.70
792.00
178.50
40.06
268.00

4.50
7.50
-2.88
39.00
69.00
-0.50
67.00
0.52
0.00
10.60
-2.00
5.50
1.28
-0.75

135.62
121.00
72.00

1581
1256
720.50
1145.1
18.50
55.00
258.41
695.00
158.20
31.47
221.25

3.95
2.80
3.71
2.21
4.84
2.70
4.41
0.69
4.79
1.90
3.41
3.14
1.50
3.23

9.58
11.98
12.89

31.83
11.61
27.00
49.76
24.93
33.53
23.39
-35.04
12.57
62.71
58.90

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

520.00
199.00
933.50
249.30
640.00
1970
1664

125.00
1650

20.00
5.00
31.50
10.70
-13.00
15.00
-29.00
0.00
-8.00

760.00
268.00
935.74
375.84
1114
2550
2420
168.25
1750

380.00
192.00
707.61
187.50
502.62
1577
1441

122.50
1396.8

1.88
2.56
1.28
4.41
2.03
2.36
2.87
4.40
3.88

-84.51
18.09
33.12
21.00
-74.71
14.70
17.44
19.15
16.06

6.7
90.9
501.2
228.3
60.2
32.2
251.8

253.8
6.2

46.50
5.80
-5.00
-5.50
67.00
1.27

571.50
453.50
354.00
380.37
1663
30.05

389.10
208.50
240.10
265.00
1159
23.30

1.47
6.93
4.74
7.88
3.94
1.34


8.81
17.03
19.94
12.71
11.40
11.20

1728.7
2638.9
289.2
1.7
132.8
12.7

52 Week
High
Low

Yld

P/E

Vol
000s

Financial General
3i
AberAsM♦
BrewDlph♦

CtyLonInv
CloseBrs
DBAG €

552.00
281.30
253.00
304.50
1359
27.74

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
WlkrCrip

1346
99.20
267.20
429.40
142.50
670.00
274.40
487.40
443.00
272.00
136.50
92.85
311.60
2914
1975
24.50
2272.5
2736
2074
541.00
332.50
46.25

52 Week
High
Low


Yld

P/E

Vol
000s

1.60
3.56
5.12
4.59
3.83
4.52
4.10
3.05
2.94
5.69
4.25
3.53
3.54
2.73
6.73
3.04
3.03
4.00
5.07
3.68

39.02

6.36
18.95
21.32
-10.46
10.50
10.33
13.91
15.52
20.17
20.18
23.15
8.27
19.46
20.45
8.83
17.16
16.43
12.46
10.51
9.98
27.51

297.1
9.7
754.0
839.0
1116.9
776.5
149.5
1374.9

1127.5
2.2
2311.2
1954.9
1234.2
240.0
15.9
106.1
11.5
197.4
3.4
22.1
164.1
255.4

-5.25 679.00 420.00 0.69 -18.09
30.00
3606
2850 1.15 41.34
-0.50 642.50 482.80 2.26 18.52
-20.00 761.50 632.00 3.37 16.60
0.14
4.21
3.30 2.69 -16.03
-1.00 178.25 136.43 2.59 10.76
-40.00
1638
1236 2.00 23.44
16.00 2608.91 1512.48 1.47 27.27
-19.50 700.00 502.50 3.92 40.05

3.00 328.00 245.50 3.51 28.95
0.99 19.59 15.50 0.61 33.24
-8.70 396.70 262.80 1.74 27.77
10.00 610.00 410.00 2.27 22.10
0.15 84.80 62.17 0.56 27.70
1.45 76.95 65.70 2.91 26.11
2.25 62.00 29.65 -1.62
-34.75 449.00 272.50 87.39
-6.00 326.27 232.00 1.42 -37.24
33.50 4590.8
2773 1.74 35.48
0.50 208.00 97.75 1.74 22.37
17.50 630.50 492.20 4.47 64.96
-0.54 137.84 77.85 3.67 13.35
71.50 3334.5
2450 2.82 24.87
1.60 42.79 32.92 2.84 24.38

6.7
466.4
34.7
536.0
27.4
4.7
343.5
96.2
185.8
105.5
21.6
686.0

9.8
25.3
4256.8
1194.5
1313.6
19.0
1599.5
219.9
1186.4
219.9
1637.2
11.4

Price +/-Week
83.00
2.70
8.10
-2.30
4.20
14.50
9.90
5.90
13.10
-12.00
5.30
1.05
-14.30
63.00
35.00
-0.25

-27.50
161.00
106.00
10.00
4.30
0.00

1533
113.50
314.30
571.00
171.50
712.83
502.00
626.00
481.30
393.50
184.80
98.85
449.00
3654
2373
41.00
2595
3439
2616
565.00
415.90
55.00


1024
90.70
209.90
390.30
122.10
485.70
215.60
402.20
359.70
245.00
126.50
84.25
284.70
2641
1891
20.30
1996.5
2320
1792
435.30
287.10
38.00

Food & Beverages
AngloEst
AscBrFdX
Barr(AG)♦
Britvic♦
C&C €♦
CarrsGroup

Coca-Cola HBC
Cranswk
Dairy Cr
Devro
Glanbia €
Grncore
HiltonFd
Kerry €
Nestle SFrX
PremFds
PureCircle
REA
SABMillX
StckSpirit
Tate&Lyl
TongtHu R
Unilever♦
..NV €♦

461.25
2950
546.50
682.00
4.09
143.00
1326
2307
554.00
251.00
16.80

352.80
600.00
79.97
74.25
41.25
350.00
282.50
4283.5
158.50
626.00
113.03
3152.5
40.58

Health Care Equip & Services
Bioquell
ConstMed
GNStre kr
UDGHlthC♦

171.50
970.00
136.50
601.50

-1.00
16.50
3.10
-1.50


178.00
1155
152.50
629.50

126.00
872.50
108.20
452.20

1.92
1.87
0.75
1.45

114.33
96.44
24.54
34.63

57.3
1.6
674.1
301.9

493.90
2218
2823
813.50
1.00

218.43
462.29
455.00
408.00
456.00
96.80
180.00
1772
20.48
240.70
5403
351.30
166.01
2244

2.52
2.79
5.41
3.59
2.78
10.32
1.83
3.70
2.29
1.88
1.41
0.88
1.71

11.61

10.00
11.05
10.74
-7.04
63.06
12.34
13.16
16.23
14.67
87.28
19.95
12.69
62.67
27.22
28.53
8.99
13.78
24.89

2592.4
223.2
793.4
359.9
1348.2
728.2
330.7
0.5
25.1
5.7
71.3

1637.6
656.6
3102.4
160.4
1346.2
282.8
7932.0
46.1

489.90 2.39 20.64
385.00 2.88 13.53
95.25 8.33 -12.75

517.4
2.9
308.7

House, Leisure & Pers Goods
BarrttDev
Bellway♦
Berkeley
BovisHme
Cairn Homes €
CtrySide
CrestNic
GamesWk♦
Gleeson
Headlam
McBride
McCarthy&S♦

Persimn
Philips €♦
PZCusns
ReckittBX
Redrow
TaylorWm
TedBaker♦

598.50
2760
3330
1023
1.09
275.00
597.00
503.75
545.00
494.50
153.00
238.00
2112
24.33
348.90
6873
426.70
206.00
2471

18.00 673.50
89.00 2897.51

127.00
3788
33.00
1206
0.02
1.23
17.00 287.00
15.50 607.50
5.75 625.00
-15.00 630.00
-11.00 550.00
-5.50 181.50
6.00 295.00
22.00
2255
1.33 26.10
22.90 370.00
53.00 7069.82
19.80 504.50
0.50 211.90
123.00
3650

Industrial Engineering
Bodycote♦■
Castings
Fenner

610.50
462.00

144.00

26.00
-13.00
-1.50

777.00
514.50
237.00

Price +/-Week
Goodwin
Hill&Sm♦
IMI
MelroseInd
Renold
Rotork
Severfd
SKF SKr
Spirax-S
Tex
Trifast
Vitec
Weir♦

1952.5
947.50
1003
380.30
40.50

195.90
49.38
148.70
3445
128.50
132.00
502.25
1212

52 Week
High
Low

Yld

P/E

Vol
000s

-47.50 2908.2
-41.50 1000.00
9.00
1282
-10.00 2046.17
-0.25 86.00
0.80 260.90
0.38 75.00
-0.20 211.50
2.00 3725.04

5.00 132.00
-4.00 140.50
-22.75 670.85
-17.00
2045

1410
636.00
717.00
274.00
28.20
150.30
48.00
120.00
2664
99.30
101.96
495.00
764.50

2.17
1.97
3.78
14.61
2.57
1.01
3.87
1.96
4.67
1.59

4.82
3.63

15.99
30.98
22.59
-34.66
15.85
22.75
107.57
16.81
26.63
7.01
15.79
17.19
-

0.1
41.3
420.7
781.9
18.2
1504.3
132.7
1068.6
83.7
25.5
139.3
675.2
800.1


0.00
-0.75
1.00
1.72
0.47
0.50
-1.00
27.50
6.00
28.00
44.00
0.90

755.00
31.00
195.00
62.72
34.32
69.82
644.50
864.50
423.70
1243
1948
453.50

606.25
21.25
123.00

45.00
25.24
40.00
502.50
607.50
329.10
858.00
18.24
265.10

2.33
1.72
2.59
0.93
2.69
2.82
1.80
2.95
3.65
2.49
4.70

11.42
23.59
25.58
11.65
9.08
14.36
24.40
40.72

28.07
15.48
13.63
19.79

0.4
6585.8
3.1
308.4
188.0
22.5
2450.4
1368.4
3382.1
555.8
350.1
82.9

243.02
513.86
2855
13.90
1523
99.00
931.00
535.00
543.00

149.70
410.00

1710
8.84
894.50
49.98
696.50
412.80
245.25

3.95
5.82
2.63
1.49
1.58
5.24
3.94
6.81

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


729.00
28.50
174.50
55.50
29.31
62.50
627.00
794.50
386.30
1123
1914
346.40

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

202.40
446.63
2320
11.68
1438

53.50
815.00
532.50
320.00

5.30
-3.38
67.00
-0.02
-56.00
0.75
27.50
40.60
28.00

25.87
21.27
34.49
60.34
18.17
17.83
27.46
18.52
21.20

1458.8
7.5
11.4
817.4
6.0

187.1
0.4
2877.4
263.6

1947
455.70
368.10
305.75
138.25
112.50
975.50
920.00
570.50
240.00
843.50
178.00
2.14
881.00
1394
482.10
63.50
932.00
342.80

74.00
1993
1370 2.44 18.17
19.10 537.50 400.10 4.17 20.43
16.50 402.08 288.50 2.71 11.49

-2.00 367.81 265.75 6.08 9.71
-4.75 145.96 123.50 6.24 -1.50 123.24 93.00 7.78 11.71
-9.00
1067 819.00 2.36 13.84
34.00
1075 769.50 3.20 19.58
-9.50 772.90 512.00 1.79 10.60
14.60 277.50 199.50 4.92 13.30
11.00 914.39 693.38 3.02 10.66
8.30 233.20 148.07 5.00 14.13
0.26
5.46
1.81 -2.20
44.50 952.00 777.00 6.06 9.83
60.00 1665.19 1045.99 2.73 13.82
1.50 528.00 371.00 1.14 69.87
0.00 63.00 53.00 8.77 5.10
36.00
1031 800.50 2.69 24.17
11.30 498.00 309.58 5.09 25.58

361.6
5683.7
571.8
41.9
94.6
14.9
320.9
55.2
368.4

9448.6
23.0
5071.5
881.9
1156.6
2407.9
1072.6
4.0
605.4
2619.8

1361
51.25
90.50
675.50
99.00
140.00
220.50
36.25
828.50
236.00
15.57
1250
360.00
55.10
170.50
1583

5.00
-1.75

-4.00
-53.50
0.00
3.25
7.70
-1.75
12.00
6.00
0.39
17.00
9.00
0.97
-9.50
0.00

1385
87.09
163.00
989.50
129.90
196.00
281.90
161.75
1347.5
274.00
16.75
1323
520.00
55.92
267.92

1690

1039.3
47.93
86.00
601.50
95.00
125.25
201.64
35.00
644.50
183.38
12.64
988.50
325.75
47.25
160.00
1273

309.90

-23.30

355.18

154.00 0.93

Insurance
Admiral♦■
AvivaX

Beazley
Chesnar
Eccles prf♦
Hansard
Hiscox
JardineL
Lancashire
Leg&Gen♦
NovaeGp
Old Mut
PermTSB €
PhoenixGrp
PrudntlX
RSA Ins
SagicFin
StJmsPl
Stan Life

Media
4imprint
Centaur
Creston
DlyMailA
HaynesPb
ITE Grp
ITV
JohnstnP
Pearson
Quarto♦
RELX NV €

RELX PLCX
STV Grp
ThmReut C$X♦
Wireless Group♦■
WPPX

1.69
5.46
4.64
3.17
7.58
5.29
2.36
6.28
3.64
2.41
2.11
2.50
3.24
5.95
2.68

24.84
1.9
-10.64
81.1
11.76 112.0
9.73 938.6
-1.90
0.5

13.77 1199.3
17.83 17618.2
-75.68
11.7
-19.13 1788.2
7.74
1.4
25.02 1652.6
26.38 1961.0
12.41 219.9
27.13 689.1
6.74
44.9
17.91 3190.7

Mining
Acacia

-7.02

637.9

P/E

Vol
000s

52 Week
High
Low


Price +/-Week
AngloAmer
AngloPacif
AnGoldA R
Barrick C$♦
BHP Bltn
BisichMg
EVRAZ
Fresnillo
GemDmnd♦■
Harmony R
Hochschild
Kenmr
Lonmin
Petra
Petropvlsk
PolymtIntl
RndgldRs
RioTintoX
Troy Res A$
VedantaRs

612.00 11.70 1058.53
75.00
0.00 99.66
215.50
-8.48 244.44
21.67
-2.20 25.44

840.30 22.40 1418.03
64.00
-6.50 94.75
116.50
-2.40 176.80
1017 -63.00
1171
133.75
1.00 159.75
45.85
-4.16 62.89
138.75 -12.50 163.15
0.85
0.09
4.10
182.00
-5.75 14790
115.75
-2.25 177.40
7.93
-0.27
9.11
817.50
4.50 836.00
5735 -295.00
6885
1964 11.50
2923
0.59
-0.07

0.77
380.30
0.80 628.00

215.55
49.00
71.59
7.89
571.60
60.00
54.00
569.63
94.75
7.92
38.75
0.27
35.75
52.77
5.09
424.20
3546
1557
0.19
195.16

Yld

P/E

Vol

000s

9.50
10.67
0.67
9.48
7.81
0.34
2.54
1.76
1.76
0.78
7.82
10.95

-2.07
-5.33
173.49
-6.40
20.24
-26.38
-3.83
156.63
5.37
-3.39
-3.92
-0.58
-0.22
61.73
-1.67

23.08
39.45
-60.99
-1.27
-0.75

6110.4
179.6
1247.8
4738.5
8474.2
0.2
4417.7
889.4
34.2
1220.9
915.0
1622.6
994.0
648.4
1736.2
320.7
338.3
4274.5
4087.0
380.9

Oil & Gas
Aminex
BPX♦

Cadogan
CairnEng
Cape♦
ExxonMb $X♦
GenelEgy
GeoPark $
GrnDnGas
GulfKeyst
HellenPet €
Hunting
ImpOil C$X
IE Hldgs
JKX
Nostrum
OphirEgy
PremOil
RylDShlAX♦
..B♦
Schlmbrg $X♦
SEPLAT♦
Soco Int♦
TrnCan C$X
Tullow

1.30
361.95
8.25
198.50
209.75
90.01

125.00
2.32
255.00
4.78
4.23
307.75
42.26
12.50
22.25
323.00
70.00
72.75
1675
1680.5
77.17
88.75
124.00
54.52
238.20

-0.10
0.45
-0.38
-10.30
4.00
0.27
-0.75
-0.30
2.50
-0.52

0.23
15.25
1.24
1.50
0.00
-2.00
0.40
0.50
-5.00
-8.50
2.21
-9.50
-5.50
1.05
-8.80

2.33
1.18 -9.56 2276.7
457.15 249.44 7.72 -9.89 26723.2
13.25
7.75 -1.21
69.5
232.00 124.70 -3.24 1089.3
262.50 199.00 6.67 12.34
38.7
90.46 66.55 3.30 28.47 7499.1
564.50 71.75 -0.44 5250.9
5.43
1.90 -0.63 120.6
7083.33

375.00 200.00 0.0
40.99
3.52 -0.49 8389.0
5.65
2.74 20.42 137.8
677.00 232.00 5.95 -2.91 336.4
50.23 37.25 0.86 58.47 352.2
127.99
4.00 -0.55 230.6
31.25 14.40 -0.69
26.5
623.50 203.00 5.75 -8.14
71.9
136.70 63.49 -2.19 1424.8
170.50 19.00 -0.51 7136.3
1973.5
1256 7.76 -78.46 4672.2
2005.5 1261.03 7.74 -78.72 4559.9
92.61 59.60 2.64 60.23 5039.0
126.90 54.80 10.04 30.57 185.6
201.40 117.00 8.38 -17.80 390.5
54.74 40.58 3.99 -27.37 1092.7
400.50 116.26 -3.09 4607.7

Pharmaceuticals & Biotech
BTG
CathayIn
Dechra
Genus
GlaxoSmhX♦

HikmaPhm
Oxfd Bio
RichterG $
ShireX
VecturGp

677.50
17.25
1169
1546
1452.5
2225
5.51
20.51
4289
165.50

30.00
-0.25
43.00
4.00
16.50
-71.00
0.15
0.79
8.00
-2.80

730.50
28.29

1250
1629
1532.1
2520
10.96
20.58
5870
200.10

504.00
7.10
902.50
1256
1227.5
1575
5.00
14.10
3423
145.30

Harworth Grp

95.00

0.50

143.70

92.00


Assura
BigYellw
BritLand
Cap&Reg
Countrywd
DrwntLdn♦
Gt Portld
Green Reit €
Hammersn
Hansteen
HIBERNIA
Highcrft♦
INTU
LandSecs
LondonMtrc
McKaySec

56.80
837.00
760.00
60.25
370.10
3355
765.00
1.48
588.50
105.20
1.30
955.00
304.70

1188
164.60
235.50

-1.05
-14.00
18.50
-1.00
8.80
13.00
-18.50
0.02
21.00
-0.80
0.03
0.00
18.30
13.00
0.70
7.00

64.00
893.50
879.50
71.50
608.00
3891
892.50
1.64
689.50

126.16
1.45
1090
355.70
1355
172.10
279.75

50.00
620.00
642.27
55.00
312.20
2904
681.00
1.30
531.00
99.68
1.18
910.00
269.20
963.00
152.20
216.00

1.45
1.26
5.51
0.79
0.60

0.42
-

56.92
-7.07
50.95
31.24
115.62
26.16
-10.89
20.08
27.41
137.46

1060.5
7.0
187.3
17.1
5104.3
702.9
984.8
0.0
2233.8
915.2

3.07

22.7

3.43 10.29

2.59 9.96
3.66 5.54
3.49 4.40
4.05 19.67
1.21 4.85
1.18 4.16
3.59 6.35
4.85 5.93
3.88 17.19
4.50 8.26
2.70 4.50
4.25 6.67
3.69 4.11

1721.2
123.5
3683.5
313.0
205.8
125.7
1573.5
45.6
2302.6
668.0
557.0
0.2
2219.0
2234.8
1355.6
45.0


Yld

Vol
000s

Real Estate

REITs

-

MucklGp
PrimyHth
Redefine♦
SEGRO
Shaftbry
Town Ctr♦
Wkspace

Price +/-Week

52 Week
High
Low

Yld

471.38
107.00

44.89
438.80
935.00
305.00
873.00

530.00
113.50
57.95
466.70
975.50
336.75
989.50

445.00
95.00
41.83
394.51
809.36
272.00
705.50

4.42 6.88
4.67 10.12
7.24 15.75
3.38 4.91
1.47 7.11
3.42 7.27
1.38 4.05


5.5
662.1
1823.1
1251.9
502.8
1.3
183.5

1.70 475.10
60.00
2037
125.00 6614.2
4.40 256.00
-1.00 475.50
0.06
8.80
-0.50 42.52
-3.25 222.00
62.50 12439.08
-0.75 58.56
-1.25 143.50
0.00 34.00
-6.10 370.00
12.00 991.46
-0.25 62.00
0.00 114.80
16.10 499.40
1.00 293.00
13.00 706.00
-3.00 291.00


312.10
195.00
5380
201.40
355.00
5.55
19.50
111.00
10900
28.50
115.00
12.00
269.00
650.85
54.50
97.25
285.60
178.50
567.00
235.50

0.44
1.38
1.14
1.86
3.06
0.62
2.46
9.50

2.35
1.45
4.20
2.77
1.53
3.11
2.19
1.02

1751.0
35.8
0.9
2028.0
147.6
3216.7
22.2
18.7
0.1
23.1
14.5
3.6
297.3
62.5
509.6
7.5
275.3
90.1
260.6
323.2


11.38
0.25
0.14
12.00
6.00
-4.00
29.00

Real Estate Inv & Services

Cap&Count♦
CLS
Daejan
Grainger
HelclBar
HK Land $
Lon&Assc
MacauPrp
Mntview
RavenRuss
RavenR Prf♦
RavenR Wrt
Safestre
Savills
SchroderRE♦
Smart(J)♦
StModwen
U+I■
UNITE Gp
Urban&C


343.10
1600
5960
242.10
390.00
6.15
25.00
113.75
11162.5
32.75
126.25
15.50
353.00
777.00
59.00
107.00
329.00
190.00
663.50
260.00

P/E

6.74
5.23
6.13
19.30
4.14
7.25

-8.77
-1.78
12.15
-1.68
6.79
16.76
7.22
16.60
3.75
10.88
4.42
8.47

Vol
000s

Retailers
AA♦
AO World
AshleyL
Brown N
Caffyns
Card Factory♦
Dairy Fm $
Debenhams
Dignity♦
DixonsCar
Dunelm
Findel
Halfords

Inchcape♦
JDSportsF
Lookers♦
Marks&Sp
MossBros
Next
Ocado
Photo-Me
Saga♦
SuperGroup
TescoX

286.50
170.00
24.25
252.00
595.00
368.00
6.51
74.80
2550
445.90
947.50
174.88
449.10
695.50
1296
148.10
386.60
107.88

5535
271.10
159.50
212.70
1393
167.25

3.50 423.30 246.00 1.22 284.51 870.9
0.50 198.00 118.60 -73.66
79.1
0.00 35.50 22.00 8.25 9.44 248.0
11.60 400.00 231.30 5.65 16.95 260.1
20.00 665.00 480.00 3.40 1.73
32.0
-6.40 401.50 269.00 2.53 18.91 136.4
0.01
9.25
5.56 3.50 20.92
30.7
0.45 96.35 63.75 4.55 9.38 2090.7
89.00
2643 2038.44 0.79 22.27
51.3
6.60 506.50 398.90 21.03 2272.1
-3.50
1023 803.50 2.16 20.04
47.5
-1.63 254.75 162.00 -25.26 7234.9
18.70 563.51 310.80 3.25 13.47 277.7
-25.50 875.59 657.50 2.96 17.64 740.7

24.00 1307.09 613.50 0.54 29.85 117.5
5.10 188.80 130.28 1.99 11.78 295.3
-58.10 600.00 385.00 4.66 14.81 9852.2
6.88 112.00 88.00 4.96 23.97 289.8
190.00
8175
4900 2.76 12.74 480.4
1.50 478.50 226.80 - 237.60 848.7
1.75 185.50 131.75 3.06 22.95
55.4
-0.60 225.10 170.80 2.96 16.11 1392.2
18.00 1733.49
1085 28.47
61.1
2.95 227.35 137.00 60.60 13714.6

Support Services
Acal
Aggreko
AshtdGp
AtknsWS
Babcock
Berendsen
Brammer
Bunzl♦
Capita♦
Carillion♦
Comnsis
ConnectGp
DCC♦

DeLaRue
Diploma♦
Elctrcmp
EnergyAst
Essentra
Experian
HarvyNah
Hays
Homesve
HowdenJny♦

257.38
4.38 334.75 235.25 2.95 24.18
1135 -12.00
1642 762.05 2.39 17.94
986.00 20.50
1231 749.00 1.65 13.32
1354 18.00
1677
1110 2.70 13.91
1032 45.00 1152.76 840.00 2.29 19.26
1201 -12.00
1233 946.50 2.54 23.19
189.00
5.00 330.00 136.50 5.66 26.39
2024
0.00
2108
1665 1.79 28.85
1075

-2.00
1336 982.00 2.80 136.79
277.80
7.90 363.90 243.80 6.43 9.94
39.38
-1.13 57.00 36.25 5.23 5.65
159.75
0.00 175.00 129.75 5.76 15.01
6260 -225.00
6740 4522.72 1.35 40.78
566.50 80.50 585.00 395.50 4.41 14.60
745.00 -13.00 846.50 600.29 2.44 23.07
288.60 12.60 293.86 167.55 4.07 30.37
680.00
-1.00 695.00 433.64 23.24
833.50 19.00
1038 660.00 2.27 32.31
1291 26.00
1304
1017 2.04 28.48
68.50
-2.00 107.00 68.00 5.20 9.94
137.00
6.50 173.70 112.60 2.01 17.88
488.00 69.90 493.20 353.68 2.54 27.89
508.50
7.50 538.50 440.46 1.83 18.69

4.6
598.8

1376.4
133.1
1109.1
211.5
228.2
443.3
1364.0
947.2
134.4
41.3
327.6
364.7
71.0
491.1
3.4
391.2
1335.6
83.6
2593.4
312.2
574.0

52 Week
High
Low

Price +/-Week
Intserve
Intertek♦
Lavendon

MngCnslt
MearsGp
MenziesJ♦
MichaelPge♦
MITIE
PayPoint
PremFarn♦
Rentokil
Ricardo
RbrtWlts♦
RPS
Shanks#
SIG
SpeedyHr
St Ives
Vp
Watermn
Wolseley

333.40 19.10 673.00
3150 -142.00
3377
127.50
1.50 211.50
16.75
-0.25 17.25
386.50
1.50 475.00
503.00 -19.00 535.00
401.80 12.20 568.00

282.50
8.90 341.00
960.00 100.00 1112.15
120.00
-1.50 200.16
179.30
2.60 183.30
840.00
2.00 967.50
330.00
7.00 478.00
183.25
4.50 246.75
80.50
-1.25 113.50
134.70
6.10 209.90
39.25
-0.50 77.00
98.25
-1.00 248.17
719.75 -10.25 816.00
96.50
1.00 100.49
4088 116.00
4398

Yld

276.00

2296
120.75
12.94
361.75
357.50
358.30
236.50
709.00
87.75
138.70
764.60
298.00
162.00
68.75
117.00
27.94
98.00
640.00
65.00
3214

7.02
1.59
3.84
3.55
2.65
2.60
2.78
4.14
4.01

8.67
1.50
1.98
1.91
4.95
4.29
3.47
1.78
7.28
2.29
2.07
2.22

P/E

Vol
000s

7.06
-14.05
26.10
-10.47
19.23
30.58
19.04
14.13
32.55
10.10
26.33
20.92

17.63
59.30
-42.17
22.12
-14.27
28.21
14.52
14.90
18.33

727.5
421.8
122.5
77.8
2.3
85.2
467.9
828.6
66.6
405.9
2434.9
5.7
8.8
108.4
0.7
892.8
38.4
228.2
0.2
19.3

373.8

811.50 0.78 40.27
314.90 3.58 -113.59
64.25 3.28 54.27

3257.9
209.5
32.0
134.4
289.9
9.0
13.9
400.0
147.4
62.3
1851.4
13.7
7.4

Tech - Hardware
ARM Hldgs
Laird
SpirentCM

982.00
352.80
80.00

37.50

18.00
0.50

1332.5
413.30
98.75

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

1602
847.00
8.00
73.50
1600
290.00
138.50
604.50
417.75
25.50


9.00
2.00
0.00
2.00
28.00
-2.80
-5.50
14.00
-1.75
0.00

2350
885.00
13.95
79.60
1623.5
326.00
185.00
639.00
463.75
43.00

1221
705.00
7.10
62.00
1150
208.00
130.00
363.39

315.00
12.58

1.90
2.30
5.44
1.94
1.37
3.06
2.17
0.60
-

36.23
10.32
-1.32
30.82
40.28
45.53
7.78
37.26
-11.04
8.91

451.90
748.50
108.25
242.50
1023


8.90
-6.50
1.75
-1.00
45.50

502.60
1153
124.50
412.70
1215

404.00
708.63
86.00
184.00
780.00

2.85
4.53
4.96
5.69
3.91

15.22 10674.9
19.56 1820.1
43.35 504.8
45.64 1253.7
24.93 136.7


4205.5
3786

58.50 4357.13
86.50
3898

Telecommunications
BTX
Inmarsat
KCOM Gp
TalkTalk
TelePlus

Tobacco
BrAmTobX
Imperial BrX

3231.5 3.57 18.26
2926 3.72 32.09

1304.1
1011.0
398.6
5.8
480.9
2099.2
583.0
1489.3
0.4

29.8
270.0
2.5
2671.7
41.6
884.5
241.1
5.3
2337.9
942.1
7390.8
817.5
562.3
1428.9

Travel & Leisure
888 Hldg
AirPrtnr
Cineworld
CompassX
EntInns
FirstGrp
Fuller A
Go-Ahead
GreeneKg
IrishCtl €♦
Ladbrokes
MandarO $
Marstons♦
Natl Exp

PPHE Htl
Restaurt
Stagech
ThomasCook
TUI
Whitbrd♦
Willim H♦

227.00
426.13
563.00
1288
99.00
108.90
1038
2584
893.00
5.31
136.30
1.50
157.00
339.20
795.00
360.20
258.30
76.40
1050
4249
312.50


-0.75
6.25
12.50
8.00
1.75
4.20
-31.00
21.00
14.50
0.29
9.00
0.05
4.00
8.10
0.00
8.10
5.20
2.70
11.00
-30.00
4.30

235.00 146.08 2.40 40.80
470.00 345.00 5.33 22.43
599.00 451.32 2.40 18.86
1312 963.00 2.28 23.48
135.10 69.80 -13.76
129.90 79.55 19.67
1250 993.75 1.51 20.59
2758 2134.59 3.48 19.28

985.00 766.00 3.22 21.99
5.60
3.80 1.95 19.25
150.00 92.85 4.11 259.62
1.72
1.18 4.63 20.40
177.00 142.70 4.27 -33.24
353.10 268.50 3.14 16.27
825.00 464.50 2.52 11.14
728.00 265.00 4.47 10.52
420.20 240.60 4.07 11.21
147.77 69.96 20.90
1287 956.50 4.23 50.74
5315
3641 2.01 19.85
432.10 294.10 3.94 14.57

205.30
1295
312.30
1009
869.50
971.00

3.80
0.00
10.60
22.40
56.50
16.00


286.67
1484
401.00
1015.5
901.00
1010

Utilities
Centrica♦
DeeVally
Drax
Natl GridX
Pennon
UtdUtils

182.50
1270
205.10
806.40
711.90
816.50

5.83
4.83
3.94
4.25
3.62
3.88


-13.77 11412.1
16.89
2.0
22.59 515.7
17.59 4193.7
30.06 669.3
23.66 1623.5

AIM
Price +/-Week

Aerospace & Defence
Cohort

365.00

-2.50

432.04

259.50 1.37 26.87

29.9

7.75
0.00
2600 -199.50

9.50
3425


3.25 -0.70
2537 2.65 24.98

0.7
28.4

Banks
Caribbean Inv
STB

Basic Resource (Ex Mining)
CropperJ

737.50

5.00

783.00

430.00 1.15 33.95

2.7

272.50

27.50

279.75


174.75 0.55 54.98

1306.9

Chemicals
Scapa

Construction & Materials
Abbey
AccsysTch
Aukett

1062.5
65.50
6.50

-37.50
1.25
0.00

1300
78.50
8.50

845.00 0.81 6.45
56.00 -41.91
5.50 3.38 6.50

1.1
3.1

80.0

Electronic & Electrical Equip
CeresPow
ElektronT
FlowGp
LPA
ThorpeFW
Zytronic

9.20
5.88
12.75
125.00
237.50
377.50

0.08
0.50
-3.75
-5.00
-1.50
-10.50

10.00
8.70
28.40
142.00
250.70
440.00


4.20 -6.56
5.05 8.87
9.75 -2.40
58.00 1.24 22.81
165.00 1.54 22.26
273.00 3.18 14.99

66.6
120.0
6181.6
1.0
1.9
27.4

0.00
89.50
1.00
-27.50
4.50
0.00
7.00
0.25
6.75

10.50
3.25 -0.91
1650 1251.29 1.78 30.70
167.00 131.00 1.67 7.31
9812 7844.85 1.55 18.03

195.00 120.22 5.06 -9.06
41.00 30.25 10.42
653.00 509.00 1.62 33.99
36.00 23.50 2.33 34.11
278.00 191.00 7.67 10.01

4.0
13.6
3.4
2.7
28.9
25.0
17.7
127.1
69.7

Financial General
Ambrian
Arbuthnot
BP Marsh
Camellia
Fairpoint♦
Leeds
MattioliWds
Miton
Numis

3.50
1575
164.50

8124.5
129.50
39.50
646.50
25.75
221.75

Price +/-Week
Park Grp
PolarCap
Share♦
ShoreCap
STM Group♦
WH Ireland

70.00
326.00
28.00
317.50
45.00
92.00

0.50
-6.75
0.00
0.00
-3.00
0.00

52 Week

High
Low
97.97
489.75
38.39
429.40
73.00
130.00

52.00
317.00
25.00
300.00
40.00
81.10

Yld

P/E

Vol
000s

3.43
7.67
2.21
1.57
2.17

13.92

12.72
61.14
12.17
11.88
-32.81

144.6
5.1
28.4
200.0
49.8
5.1

115.00
1436
36.00
420.00

-1.50 124.00
96.00 1496.81
-3.50 59.40
-5.00 610.00

79.08 2.17 17.12
1086 1.62 23.83
34.10 26.07
405.10 2.50 12.26

43.3
19.0

6.8
4.6

Health Care Equip & Services
Advnc Med♦
AVO
CareTech
CircleHldgs
ImmunDiag
Tristel

194.75
8.00
241.00
20.25
149.00
115.00

11.75
1.50
-4.50
-0.75
4.00
-4.50

199.75
10.25
262.15
48.98
320.69

152.00

135.00
4.75
210.00
9.00
135.00
80.50

0.37
3.32
2.01
2.37

29.14
-10.13
17.47
-4.30
34.21
29.83

478.1
5527.8
8.3
3.8
36.3
119.9

23.00
860.00

34.80
1050
1275
495.00
244.85

15.50
502.00
17.50
825.00
880.00
306.85
184.00

4.62
2.13
2.34
3.07
1.24

14.52
21.12
-4.46
17.68
7.53
20.27

10.0
50.2
57.0

0.2
9.3
143.7
34.3

House, Leisure & Pers Goods
Airea
Churchll
gamingrealms
Mulberry
Portmern
TelfordHms
WalkerGb

19.50
780.00
20.88
1034
1157.5
361.25
193.00

52 Week
High
Low

Yld

Industrial General
Powerflte

RM2

75.00
24.00

-0.75
-1.50

100.98
73.00

64.00 1.47 11.70
23.00 -2.42

106.5
196.2

182.50

0.00

210.00

157.00 0.82 23.70

3.0

214.50
98.50
332.00

41.00
270.50
178.00

-3.00
0.50
9.50
1.00
-1.00
2.75

254.00
106.70
374.75
50.00
305.00
181.00

140.00
77.10
278.75
38.14
177.00
101.50

17.44
28.60
36.73
8.76
48.55

39.72

18.4
54.9
19.9
7.0
4.1
68.9

4.75
2.15
163.75
2.65
25.50
3.50
87.25
1.00
2.63
5.88
22.38
19.00
1.93
0.68

0.17
-0.58
0.00
0.15
-2.00
-0.38

-6.75
0.18
-0.03
-0.25
0.00
0.25
-0.08
0.00

44.58
2.99
190.00
4.30
38.50
8.95
100.25
1.54
3.20
8.75
30.33
29.50
2.66
18.00

3.89 4.73
0.63 -14.83
118.21 7.62 12.20
1.00 -7.53
0.28 -5.90
2.50 -3.37

37.00 4.76 -40.54
0.50 -37.04
1.10 -22.25
4.00 -2.32
15.00 -13.05
10.28 -56.21
1.06 -22.38
0.47 -0.18

2818.2
775.0
11.6
1826.0
11.6
68.0
1038.6
3041.6
1426.7
481.6
21.4
2456.5
276.5
65.7

27.50
19.25
1.73
1.95

0.00

-0.25
-0.10
0.03

39.75
35.00
3.25
6.50

Insurance
Helios

Media

Food & Beverages
FinsbryFd
Nichols
RealGdFd
Wynnstay

Price +/-Week

0.00
0.00
0.88
-3.50
0.00
17.75
3.50


-711.14

Industrial Engineering
600 Grp
MS Intl
Pres Tech
TP Group

9.25
181.50
134.50
3.88

-0.25
0.00
-0.50
0.00

19.50
227.50
287.74
6.75

7.00 6.66
137.40 4.41 22.14
90.00 6.25 27.95
1.76 -8.55

108.2
0.7

5.6
104.1

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
FstPacfic HK HK$
For & Col
Geiger
GenEmer
GFIS
GRIT
GoldenPros
Hansa♦
..A
Hend Alt
Hen Div
HenEuroF♦
HenEuro

HenFarEs♦
HenHigh
HenInt Inc♦
Hen Opp
HenSmlr
Herald
HICL Infra♦
Highbridge Multi
Impax Env.
Ind IT
IntBiotech
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♦

223.50
159.50
1052.5
656.00
263.50
995.00
148.00
112.00
256.00
134.80
168.90
87.88
193.50
597.50
4.81
437.60
13.25
492.50
12.50
6.25
31.00
736.25
722.50

221.38
90.00
961.50
848.00
279.00
175.00
123.50
828.00
617.00
690.00
163.00
181.00
169.00
384.00
440.50
146.80
181.00
272.00
71.38
119.25
155.50
101.00
162.25
388.00
89.50
88.00
353.00
122.80
290.00
207.13

43.38
152.75
100.25
592.50
98.50
568.00
235.50
121.13
271.38
558.75

1.25
1.00
20.00
2.00
2.75
-15.00
0.25
1.00
-3.00
0.00
4.10
-0.38
6.50
14.00
-0.08
5.10
-0.38
7.50
-0.25

0.50
-3.25
-8.75
-2.50
-0.63
0.00
-9.50
-15.50
4.25
-0.50
2.38
11.00
12.00
7.00
-0.40
0.90
2.25
0.00
8.50
1.50
4.00
10.00
0.25
0.25
0.50
0.00
1.75
3.00
0.00
-0.50

-3.00
1.70
5.50
4.13
-1.50
-0.25
0.00
4.50
1.50
11.00
3.50
2.63
5.13
10.75

261.36
183.36
1197
844.36
275.00
1025
158.00
129.50
271.96
177.40
187.50
92.00
217.00
613.00
7.37

459.00
20.50
545.50
20.53
17.00
37.75
917.00
863.02
241.75
93.50
1119
928.00
348.00
195.25
129.75
1059.1
703.00
750.00
166.00
200.00
175.50
410.00
620.00
148.20
207.00
305.00
78.00
122.69
168.89
104.00

175.50
395.35
100.00
103.00
394.00
126.50
379.75
252.51
56.50
216.72
101.72
634.01
110.00
619.50
259.51
140.25
294.46
645.18

204.29
138.00
950.00
593.85
234.00
859.00
137.01
107.50
195.50
105.06
152.00

70.25
174.50
522.00
4.56
390.00
10.00
391.70
11.00
1.67
17.00
722.00
706.00
199.00
84.50
891.00
775.00
238.25
159.83
103.77
740.68
561.00
617.00
149.90
180.00
139.00
316.74
369.33
130.00
147.00
245.00

63.00
108.50
144.50
100.00
155.00
335.75
81.00
83.00
330.00
113.10
238.90
182.00
32.25
134.51
98.25
541.40
92.00
478.20
211.75
110.00
219.85
526.38

-4.7
-25.0
0.1
-13.0
0.3
-0.5
0.7

-2.8
-14.1
-17.3
-7.5
-15.7
0.7
-9.5
-25.1
-10.7
-66.0
-19.3
-33.9
-35.2
-17.5
1.7
-5.4
-6.1
-2.3
0.7
-1.8
-14.5
-15.5
-22.3
16.8
-9.7
-12.0
-4.5
-13.4
12.7
-13.4

-10.1
3.3
-2.7
-2.1
-2.0
-1.7
-5.4
-8.5
-10.0
-9.9
13.8
-1.3
-13.5
-9.4
-16.0
-1.2
-3.2
-3.1
-12.4
-7.6
-8.5
-11.5
-9.3

Avesco
Cello Gp
M&Csaatc
MissionMk
Next15Cm
YouGov


3.03
2.68
1.95
2.80
1.37
0.56

Mining
AMC
BotswanaD
CentAsiaM♦
Connema
C'royG&NR
GrekaDrill
HighldGld
KarelianDd
OracleC
ShantaGold
SierraRut
Sirius Min
Stratex
ZincOx

Oil & Gas
AmeriRes
AndesEnrg
BahamasP
BorSthnPet


16.69
14.94
0.92
1.25

-

-16.17
-14.19
-6.56
-3.94

2157.9
1.5
948.3
284.0

104.75 84.25 4.99 96.7
117.50 72.94 5.36 96.3
370.00 318.25 343.4
115.85 96.00 4.65 108.7
554.50 430.00 600.7
289.00 210.00 313.3
305.00 233.50 0.97 331.9
1100 876.09 1.94 1043.4
221.40 170.50 1.54 370.00 259.50 3.82 402.3
101.05 82.00 7.07 88.0
929.20 805.00 1.35 986.3
185.22 148.00 198.3
1900 190.00 3.10 1826.4

538.00 432.50 3.35 518.0
281.75 227.00 1.41 288.9
644.10 435.00 1.04 460.6
374.10 314.76 4.24 362.5
1440
1095 3.35 1329.9
177.00 140.00 4.16 167.0
283.00 230.75 3.13 270.0
250.25 225.00 1.32 308.0
192.00 155.00 2.29 181.1
320.00 236.73 2.82 313.7
1845 1532.56 2.74 1944.9
496.75 374.50 5.99 433.8
346.00 312.00 1.17 340.6
166.44 145.00 182.5
60.97 51.50 3.73
2.25 446.90 360.50 0.94 478.6
590.00 458.03 1.34 641.4
773.50 595.00 4.84 724.2
1050 739.42 5.97 914.3
960.00 307.95 914.3
1.21
0.95 19.50
8.00 15.7
61.66 51.00 7.55 54.6
350.00 263.00 371.7
81.90 65.00 0.39 119.1
919.90 729.50 3.50 1002.1
2385 1898.35 - 2725.8
660.00 470.00 695.1

215.85 156.25 1.35 200.7
201.75 142.50 0.22 188.7
431.00 358.00 3.26 400.3
37600 26820 1.52 36731.
0
112.84 83.50 3.31 108.8
9.50
1.00 187.50 151.50 2.16 180.0
647.00 487.40 635.3
1.07
0.90 1.3
1.32
0.90 6.97
1.3
1703 1393.64 1.85 1540.2
225.00 196.50 1.65 205.4
297.50 226.25 1.05 299.5
348.25 220.29 4.22 271.0
165.00 127.00 1.49 155.3
206.79 154.00 4.30 187.8
173.09 136.63 3.30 174.3

-6.7
-5.0
-6.5
-7.1
-12.7
-14.6
-13.4
-1.4

-15.4
-1.1
-17.3
-11.7
-10.0
-6.8
-14.9
34.3
-6.3
-5.6
-3.6
-5.3
-21.3
-1.2
-15.2
-11.8
-7.6
0.7
-9.0
-12.0
-12.6
-8.8
3.5
-8.7
-26.8
5.3
-13.4
-35.3
-10.2
-14.5

-13.0
-3.8
-14.0
-5.1
0.4

52 Week
High
Low

Price +/-Week
ClontarfEn
Egdon Res
EuropaOil
GETECH
Infrastrata
Iofina
Ithaca Engy
PetrelRes
Petroceltic#
PetroNeft
Rockhop
Sound Oil
UnJackOil
VictorOil

0.22
11.13
4.13
26.00

2.40
17.38
55.00
4.75
7.50
2.08
37.00
15.88
0.17
35.00

0.04
1.63
0.00
0.00
0.28
2.25
7.75
0.38
0.00
0.03
1.25
0.00
0.02
-1.75

0.62
17.00
9.72
61.00

4.45
33.17
56.95
5.05
124.00
5.00
83.00
21.75
0.27
75.00

P/E

0.13 -4.48
6.60 -5.21
2.31 -7.05
21.75 8.46 21.21
1.01 -0.48
4.25 -10.98
16.00 38.65
2.00 -2.32
3.50 -0.10
1.86 -3.05
24.00 14.97
12.50 -10.07
0.10 -7.08
23.11 32.80

3413.1
206.3

204.3
128.2
40.2
101.6
2763.7
46.1
49.0
20.0
1531.6
778.3
1649.7
380.7

Pharmaceuticals & Biotech
Abcam
AllcePharm
Epistem
e-Thera
GW Phrms
HtchChMd
ReNeuron
Sareum
SinclairIS
Vernalis

631.00
47.38
90.00
14.75
512.50

1730
3.38
0.83
35.25
45.25

1.00
1.50
0.00
0.50
38.75
20.00
0.00
-0.06
0.00
-0.75

690.00
63.00
288.00
42.40
708.55
2896.6
6.50
1.20
61.33
88.29

493.75 1.30 34.79 391.6
38.00 2.18 10.42 347.0

70.00 -2.06
0.8
12.00 -4.42
98.4
211.00 -19.46 227.6
1560 -39.81
1.1
2.26 -7.02 487.1
0.17 -17.29 16474.1
32.00 -14.43 967.8
41.58 -68.05 284.8

FltchKng
InlandHms♦
Lok'nStor♦
LXB Retail
NewRiver
Palace Cap
PnthrSec
PSPI

47.50
75.88
329.00
61.00
319.00
360.00
392.50
52.50


0.00
0.50
0.00
-38.75
3.50
0.00
-5.00
0.50

62.00
89.00
374.00
139.82
362.00
405.00
403.00
54.52

38.00
64.37
279.04
60.50
300.00
320.00
303.00
28.20

4.74 4.08
1.32 3.64
2.43 22.40

5.41 8.47
3.61 6.20
4.59 10.15
-15.66

4.0
88.1
10.0
417.6
185.6
3.6
2.1
10.0

SchdrUKMd
ScotAmer♦
Scottish Inv
ScottMort
ScottOrtll
SecTstScot♦
Seneca I&G♦
Shires Inc
StdLf Eqt
StdLf Sml
StrategicEq
Temp Bar
TempEmerg
TRIG♦
ThreadUKSel
TREurGth

TroyInc&G
UtilicoEmg
UtilEmSubs
UIL Inv
ValAndInc
Witan♦
WitanPac♦
WwideHlth

442.13
270.50
614.00
261.30
743.50
133.00
146.75
204.13
424.75
352.00
213.00
1067
442.50
99.00
164.50
646.50
72.50
171.00
15.50
113.25
224.75

744.00
231.00
1760

12.13
-2.00
9.00
5.30
-13.00
0.75
0.25
4.25
10.75
0.00
10.00
30.00
2.80
-2.10
0.00
18.50
1.50
-2.25
-0.25
0.50
-4.25
15.00
-1.00
30.00

504.50

277.59
665.00
281.90
885.00
144.19
150.00
255.75
471.46
386.00
241.50
1229
551.97
109.00
179.50
661.00
74.71
199.25
22.89
122.00
264.75
836.00
265.25
2108.5

415.00
230.00
540.00
218.80
660.00
118.00

136.35
180.78
402.00
294.25
179.61
921.96
368.60
93.80
156.00
559.80
64.43
142.94
7.01
92.50
219.00
676.78
203.03
1447

1.92
3.94
1.99
1.12
1.55
4.36
3.91
6.00
3.51
1.65
0.37

4.42
1.86
6.22
2.67
1.08
3.28
3.57
6.62
4.00
2.17
1.99
0.71

522.4
256.8
693.1
257.0
871.1
142.7
147.0
234.2
437.4
376.2
216.8
1138.5
515.9
190.9
740.6
72.1
194.0

296.6
735.5
269.9
1910.9

-15.4
5.3
-11.4
1.7
-14.6
-6.8
-0.2
-12.8
-2.9
-6.4
-1.8
-6.3
-14.2
-13.8
-12.7
0.6
-11.9
-24.2
1.2
-14.4
-7.9

Conventional - Private Equity
Price +/-Week
AbnPvtEq

88.00
0.25
Altamir €
10.89
-0.38
Dun Ent
329.50
-2.50
Electra♦
3807 -13.00
ElectraPrf
153.38
0.00
F&C PvtEq♦
257.00
0.00
HVPE
942.50
0.00
HgCapital
1245 50.00
ICG Ent Tr
543.50
5.50
JPEL Pvt Eq $
0.94
0.00
JZ Capital♦
390.00
-1.00

Mithras
156.00
-2.00
NB PE Ptnr $
10.28
-0.03
Nthn Invs
705.00
5.00
Pantheon
1297.5 11.50
PantheonR
1175
0.00
PrincssPE €♦
7.47
-0.35
Riverstone
884.00 25.50
StdLfEuPv
228.13
5.13

52 Week
High
Low
91.50 82.00
11.35
8.86
360.00 285.00

3968
3131
153.60 148.55
264.00 214.00
949.00 822.00
1250 981.00
615.94 506.86
1.07
0.90
480.00 376.00
166.00 126.50
12.11
9.85
719.60 465.00
1395
1175
1295
1120
8.15
5.72
1068 719.50
229.50 191.00

Yld
2.54
4.44
1.43
3.05
4.29
2.57

2.76
0.64
2.41
7.00
2.30

NAV
129.1
18.6
482.6
4349.9
153.4
291.8
1154.0
1351.3
724.0
1.2
681.1
171.6
685.3
1718.2
1718.2
9.5
1079.8
306.7

Dis(-)
or Pm
-31.8
-41.5

-31.7
-12.5
0.0
-11.9
-18.3
-7.9
-24.9
-21.7
-42.7
-9.1
2.9
-24.5
-31.6
-21.4
-18.1
-25.6

Conventional - Property ICs
Price +/-Week

52 Week
High
Low

Yld

NAV

Dis(-)
or Pm


Real Estate

SIR
SiriusRE €
SumGermny €
TaliesinPr

Price +/-Week

52 Week
High
Low

283.50
0.52
1.01
2870.5

0.00
0.04
0.01
-2.00

300.00
0.54
1.03
2915

235.40 13.90

0.41 3.02 8.42
0.84 3.48 7.84
2208.5 5.43

102.8
1083.8
2.4
0.3

3507
40.25
14.00

16.00
14.63
-0.13

4076
75.18
262.00

2443 77.72
10.66 -1.35
13.75 35.71 -6.27

532.8
1137.2
1058.9

-5.00

0.25
-5.00
-3.75
-15.75
-10.00
0.50
0.00
0.00
-2.75
0.03
3.00
0.00
-0.25
-6.75
-4.50
0.00
0.00
3.38
-7.25

355.00
51.08
155.00
106.90
406.50
870.00
99.75
208.72
2400
587.80

4.93
206.75
15.00
13.25
418.00
335.50
297.00
34.75
164.00
288.25

236.00
38.50
91.00
63.15
155.00
692.00
81.50
140.00
1800
410.00
2.65
128.13
10.00
5.00
297.40
235.29
229.89
19.67
19.16

115.00

12.52
-34.92
9.32
9.31
7.64
12.25
30.63
16.95
20.74
14.43
10.54
12.33
6.21
-1.02
15.92
49.32
23.17
14.98
-1.55
7.55

1.0
71.3
4.4
50.3
29.5
0.3
102.6

10.0
0.0
7.3
50.3
27.2
33.9
142.2
63.2
66.0
4.8
90.0
591.5
234.2

-3.50
-1.00

171.00
27.00

100.00 5.06 167.77
15.78 6.63

159.5
867.7

Yld

P/E


Vol
000s

Retailers
ASOS
Koovs
StanlGib

Support Services
AndSyks♦
Begbies
Christie
Empres♦
Hargreaves
Impellam
JhnsnSrv
JourneyGp
LonSec
Matchtech♦
NewmkSec
NWF
Petards
RedhallGp
Renew
Restore
SafeCharge
Servoca
Tribal Grp
Utilityws♦


320.00
44.00
94.00
85.50
177.25
750.00
98.00
194.50
2075
434.63
2.95
152.00
13.63
6.38
357.75
325.50
232.50
26.00
53.75
156.00

7.44
5.00
2.66
0.82
16.93
0.83
1.89
0.85
3.28

5.06
3.39
3.55
1.96
0.80
2.76
2.55
3.21

Tech - Hardware
AminoTech
IQE

101.00
19.25

52 Week
High
Low

Price +/-Week

Yld

P/E

Vol
000s

Tech - Software & Services

Blinkx
BondInt
Brady
Datatec
DDD
Eckoh
EgSoltns
Ingenta
Iomart
K3BusTc
mporium
OMG
Progility
SciSys
WANdisco

23.00
87.50
66.50
210.50
0.60
48.50
56.00
127.00
268.00
345.50
8.50
45.00
0.78
71.50

180.00

3.00
-1.50
1.00
0.00
-0.93
1.00
0.00
0.00
3.25
-0.50
0.25
0.00
0.00
1.00
-5.00

37.75
145.50
110.13
370.00
3.94
56.00
75.40
150.00
310.00
377.00
11.25
51.56

6.09
84.50
278.40

14.75
84.00
33.60
158.00
0.25
35.89
48.00
114.00
198.82
232.00
3.62
39.00
0.55
38.50
69.75

2.51
2.78
2.47
0.76
0.93
0.43
1.44
1.64
-


-1.44
16.29
-31.86
9.90
-0.47
71.11
75.57
-11.26
31.36
27.23
-5.22
26.90
-0.51
59.58
-2.55

261.4
5.1
287.1
1.0
6704.9
99.2
10.0
17.5
66.9
19.7
24.1
85.3
84.3
5.0

0.1

-0.50
-2.25

545.00
147.60

279.16 4.62 14.02
16.00 -1.65

7.9
20.0

148.00
74.00
65.00
135.00
37.25
375.00
640.00
102.50
7.13
99.00

15.75
0.00
0.00
0.00
-0.25

5.00
15.50
0.00
0.00
0.00

186.00
79.00
80.00
150.00
41.50
410.00
684.00
222.00
14.47
110.00

54.30
70.68
35.00
120.00
26.00
251.50
385.77
83.14
6.00
90.00

ModernWtr
SeaEnergy#


5.88
2.38

-0.75
0.00

14.00
21.59

5.60
1.00

Marwyn Val

166.00

0.00

251.93

162.00

Telecommunications
AltNetwks
Peoples Op

327.00
18.25


Travel & Leisure
32Red PLC
Celtic
..6%CvPf
..Cv Pf
Cortex Holdings
Dalata
Dart
GoalsSocc
MinoanGp
PeelHtls♦

1.69
4.98
0.47
1.95
1.52

129.60
88.84
6.64
35.16
10.12
-9.85
-8.01
19.52

160.5
0.9
0.5

0.8
8.5
4.0
489.2
171.2
23.2
0.0

-

-1.24
-0.25

18.1
70.5

-

-

Utilities

Investment Companies
Conventional (Ex Private Equity)
52 Week
Price +/-Week
High
Low
3i Infra♦
171.80

5.30 189.56 163.40
AbnAsianIn
160.25
2.25 200.75 137.50
AbnAsian
782.00
2.00 887.37 653.77
AbnEmgMkts 397.50
-8.50 472.50 350.00
AbnJapInv
454.50
2.13 571.00 400.00
AbnLatAmIn
50.75
-0.75 66.00 41.25
AbnNewDn
152.00
2.00 191.39 128.25
AbnNewThai 371.50 -10.50 434.00 324.00
AbnSmlInCo
199.50
0.50 229.00 186.00
Abn UK
291.00
5.00 334.75 265.19
Abf Gd Inc
195.38
3.38 212.00 165.50
Abf Sml
1068 30.00

1235 965.00
AcenciADbt $♦
1.38
0.02
1.72
1.25
Alliance
508.50
5.50 523.50 437.00
AllianzTech
594.00 22.00 650.00 507.00
AltAstsOps
37.00
1.50 46.95 29.00
Art Alpha
232.88
2.88 283.00 214.00
..Sub
4.50
-0.25 19.83
3.50
AsianToRt
203.00
1.50 212.00 163.25
Aurora Inv
167.00
4.50 170.00 146.00
Axiom
95.50
0.00 103.00 90.00

BG Japan
444.00
-0.50 482.75 385.00
BG Shin
517.75
3.75 547.50 318.50
BSRT
22.75
1.75 28.00 12.00
Bankers♦
584.00
9.00 674.50 522.00
BH Global
1255
-3.00 1343.6
1227
..USD $
12.38
-0.08 13.19 12.15
BH Macro
1976 32.00
2110
1925
..EUR €
18.85
0.10 20.39 18.65
..USD $
18.80
0.19 20.43 18.36
BiotechGth

615.00 20.00 898.92 524.64
BlckRCom
61.88
-0.13 90.50 43.25
BlckREmEur
219.75
5.00 236.35 164.58
BlckRFrnt
112.25
0.75 118.00 93.00
BlckRGtEur
248.75
6.75 262.00 224.00
..Sub#
0.26
0.00 20.63
0.10
BlckR I&G
179.50
4.25 192.98 160.50
BlckRIncStr
123.00
0.50 141.00 114.19
BlckRckLat
314.00
-0.75 375.95 242.50
BlckRckNrAm♦ 123.13
-0.88 127.00 101.00
BlckRSmlr♦
901.75

7.75
1010 827.00
BlckRThrmt
330.75
6.00 370.00 300.00
BlckRWld
228.00
5.25 313.90 157.17
Brit Emp
465.00
-1.00 535.00 405.00
Brunner
520.00 -13.00 584.12 463.66
Caledonia Inv
2400 -13.00
2530 2098.85
CanGen C$♦
17.77
0.03 22.00 15.73
Cap Gear
3435 -30.00
3575 3152.28
City Merch
180.00
0.00 192.50 167.00
CityNatRs
90.63
0.38 105.37 63.70
City Lon
382.90

9.40 418.35 338.46
DiverseInc
93.38
-0.38 97.50 84.00
Dun Inc
215.00
3.50 266.75 190.00
Dun Sml
197.13
-0.38 229.00 179.50
EcofinWatr♦
126.00
3.00 148.25 104.00
..CULS
100.00
0.00 104.50 98.63
EdinDragn
242.00
3.75 288.55 211.00
..CULS
104.00
-0.25 107.89 99.50
Edin Inv
697.00 11.50 737.00 630.85
Edin WWd
426.13
-0.88 502.44 378.00

Yld
4.45

5.37
1.34
0.57
8.13
2.50
2.21
4.16
3.75
4.09
2.35
4.35
1.98
1.52
26.67
1.60
2.31
2.67
9.76
3.95
2.01
3.29
5.48
6.48
3.41
1.77
1.42
9.21
2.52
2.94
2.11

3.67
0.47
5.56
6.18
4.03
2.68
5.23
2.69
5.75
1.24
3.42
0.35

NAV
173.9
893.3
467.2
527.4
57.8
177.5
460.1
242.4
317.8
216.5
1199.2
1.6
570.7
660.8
49.6
303.3

217.4
167.0
457.5
500.6
36.4
620.6
1349.0
13.3
2090.0
20.3
20.1
660.6
62.2
249.7
110.5
261.7
183.6
126.7
351.3
130.4
1040.7
392.8
257.5
529.2
617.6
2838.2
25.2
3384.9
177.9
114.4

377.8
91.0
242.8
234.9
145.6
280.7
701.0
474.3

Dis(-)
or Pm
-7.8
-12.5
-14.9
-13.8
-12.2
-14.4
-19.3
-17.7
-8.4
-9.8
-10.9
-13.8
-10.9
-10.1
-25.4
-23.2
-6.6
0.0
-3.0

3.4
-37.5
-5.9
-7.0
-6.9
-5.5
-7.1
-6.5
-6.9
-0.5
-12.0
1.6
-4.9
-2.2
-2.9
-10.6
-5.6
-13.4
-15.8
-11.5
-12.1
-15.8
-15.4
-29.5
1.5
1.2
-20.8
1.3
2.6
-11.4

-16.1
-13.5
-13.8
-0.6
-10.2

1.48
3.07
5.31
2.13
3.85
0.97
5.58
0.78
0.96
1.84
1.73
2.13
4.34
2.19
2.17
1.49
5.67
2.56
2.18
6.95
5.09
3.68
1.67
2.19

4.51
0.83
1.30
4.34
2.02
3.73
8.76
3.22
3.85
4.88
5.14
5.23
3.91
5.50
1.29
1.06
0.92
1.18
0.35
1.16
3.86
1.06
2.59
3.92
1.18
3.85

234.6
212.7
1051.6

754.1
262.8
999.6
146.9
115.2
297.9
163.0
182.5
104.3
593.4
483.3
17.7
551.5
36.8
38.4
1114.2
1114.2
268.5
88.5
1016.3
902.8
285.6
173.7
125.8
968.3
730.3
887.8
139.5
200.5
192.1

402.3
508.5
130.3
209.1
302.5
69.1
122.5
158.9
103.1
165.1
410.2
97.8
97.8
391.6
107.9
293.8
239.5
47.9
181.9
101.5
612.1
101.7
648.5
254.8
132.4
306.5
616.3

JPMGIConv♦
JPM GEI

JPM I&C Uni♦■
JPM Inc&Gr
JPM Ind
JPM JpSm
JPM Jap
JPM Mid
JPM O'seas
JPMRussian
JPMSnrSec
JPM Smlr
JPM US Sml
KeystoneInv♦
Law Deb
Lazard WorldTst
LinTrain £
Ln&StLaw♦
Lowland
M&GHighInc
Majedie
Man&Lon
MCGlobPort
MCurPac
MercantIT
MrchTst
Mid Wynd
Miton Global
MitonUKMic
MMP
Monks
MontanSm

Mur Inc
Mur Int
..B
NB DDIF $
NewCtyEgy
NewCityHY
NewIndia
New Star IT
NorthAmer♦
NthAtSml
Oryx Int
PacAsset
PacHorzn
Perp I&G
PerAsset

90.25
0.25
91.50
-1.00
321.00
-3.50
101.00
-1.00
524.50 15.50
267.50
-5.50
287.50
-1.50
1029 72.00

207.50
4.50
340.25
8.25
87.00
-0.50
815.25
-2.75
175.13
3.13
1643
8.00
483.00
-3.00
245.75
0.75
618.75
7.50
339.50
-7.50
1255
-2.00
161.00
5.50
255.63
-3.38
242.50
0.13
179.00
1.50

266.00
-1.00
1715 25.00
401.00
6.50
343.00
0.00
166.00
0.75
56.75
-0.25
2.38
0.00
421.00
9.00
560.75
9.25
660.50 16.50
946.00 -11.00
835.00
0.00
1.05
0.01
11.50
-0.25
57.50
1.00
321.75
2.75
77.00

0.00
900.00 20.00
2330
0.00
605.00 12.50
193.00
2.00
162.25
3.25
379.90
6.90
36880 -140.00

PolarFins
..Sub
PolarHealth♦
PolarTech
ProspJap $
QatarInvF $
RIT Cap
RobecoNV €
RolincoNV €
Ruffer Inv Pr
SchdrAsiaP
Schdr Inc
SchdrJap
SchdrOrient
SchdrUK

96.75

2.50
171.00
590.00
0.99
1.07
1619
30.38
28.32
205.50
261.00
244.00
134.50
186.00
151.50

2.25
0.00
-0.75
15.00
0.02
0.00
-6.00
0.00
0.00
-0.50
1.00
3.00
-1.50
0.75
3.00


-11.1
-5.0
-7.1
-23.8
-17.7
5.1
0.0
-12.9
-10.0
-13.4
-1.0
-13.1

Direct Property

AXA Propty
CustdnREIT♦
F&CComPrp♦
F&CUKRealE
Longbow
PictonProp
SLIPropInc♦
UKComPrp♦

54.25
105.75
129.30
99.25
101.25

73.00
88.00
82.75

Property Securities

SchdrGlbRe#
TR Prop

135.00
302.50

-0.25
-0.25
1.60
2.25
-1.00
0.25
0.00
0.75
0.00
7.90

58.00
109.75
149.00
105.50
106.75
74.75
88.50

92.00
137.00
316.00

43.75
104.50
124.60
92.75
100.79
64.75
80.25
77.00

5.20 4.64 136.5
5.04 99.1
5.93 4.32 76.8
6.44 83.3
4.45 85.3

111.90 1.61 258.32 2.55 337.4

-

-5.3
0.2
-4.9
5.6
-3.0

-10.3


VCTs
AlbionDev♦
Albion Ent
AlbionTech
AlbionVCT
ArtemisVCT
Baronsmead 2nd VT♦
Baronsmead VCT 5♦
Baronsmead VT♦
BSC VCT
..VCT2
Crown Place
FrsightSol
Inc&GthVCT
KingsAYVCT
Maven I&G
MavenVCT2♦
MavenVCT4
Nthn 2 VCT
Nthn 3 VCT
NthnVent
ProVenGI
ProVenVCT
UnicornAIM

Price +/-Week
68.00
0.00
87.50

-1.00
69.00
0.00
66.50
0.00
68.00
2.00
96.63
4.13
77.63
3.50
91.25
3.00
94.00
0.00
59.00
0.00
27.50
0.00
93.50
0.00
95.75
2.00
18.50
0.00
65.50
0.00
47.50
-0.50
90.00

0.00
74.25
0.00
97.00
0.00
83.00
3.25
75.25
0.00
93.50
0.00
134.50
1.75

52 Week
High
Low
70.89 66.00
92.90 85.50
77.99 67.50
68.50 63.00
74.00 55.00
103.49 91.50
82.49 73.50
99.00 87.50
96.00 82.00
60.97 53.00
30.44 27.00
106.00 89.00
105.00 88.25

19.00 17.50
75.00 60.00
64.00 42.00
93.00 80.00
88.00 67.25
104.00 86.50
85.36 74.00
81.25 73.00
97.89 90.50
145.00 126.50

Yld
7.35
5.71
7.25
7.52
5.88
7.76
7.73
10.96
5.85
7.63
9.09
6.42
12.53
5.41
9.01
8.74
5.67
7.41

5.67
7.23
5.98
5.35
4.65

NAV
71.1
98.0
72.6
71.5
71.7
97.8
86.9
102.8
101.7
61.2
27.3
105.4
104.4
19.6
67.5
50.8
98.1
77.9
102.2
82.9
81.1
101.1
154.7


Dis(-)
or Pm
-4.4
-10.7
-5.0
-7.0
-5.2
-1.2
-10.7
-11.2
-7.6
-3.6
0.7
-11.3
-8.3
-5.6
-3.0
-6.5
-8.3
-4.7
-5.1
0.1
-7.2
-7.5
-13.1

Ordinary Income Shares
Price +/-Week
JPM I&C♦■

77.50
-1.25
JupiterDv&G
3.00
0.00
M&GHI&Gt
46.50
2.00
Rghts&Icp
5600 37.50

52 Week
High
Low Yld
105.90 70.00 8.77
5.40
1.75 27.67
65.50 40.00 5660
4268 -

HR
WO GRY 0%
-19.8
2.3
10.8
-28.0
-30.3
-0.7
-22.4
-0.1


Income Shares

52 Week
High
Low Yld
101.20 92.50 4.76
63.00 38.25 7.62
1407.5 985.00 2.51

HR
WO GRY 0%
-94.3
14.8
-30.3
-6.9
-53.4
4.8

JPM In&Gr♦
M&GHghIc
Rghts&I

Price +/-Week
98.75
-0.50
47.25
1.75
1432.5 12.50


Capital Shares
JPM Inc&Gr
M&GHghIc

Price +/-Week
4.63
-0.38
1.10
0.00

HR
52 Week
High
Low SP WO TAV 0%
15.15
3.00 4.1 -2.5
1.9
5.16
0.50 22.2 21.4
-

Zero Dividend Preference Shares 52 Week
Price +/-Week
High
Low
Abf Gd Inc
154.25
1.25 154.50 148.75
EcofinWatr
158.13

0.13 159.00 153.50
JPM I&C
178.25
0.00 179.15 171.91
JupiterDv&G
116.50
0.00 118.00 108.17
JZ Capital
371.00
1.75 370.00 354.75
M&GHghIc
118.25
0.25 118.29 112.75
UILFn16
190.00
1.38 190.50 183.50
UILFn18
147.13
1.38 147.50 137.00
UILFn20
127.50
0.00 128.00 116.65

HR
SP
-61.8
-24.5
-6.3
-33.7
-


WO TAV 0%
159.7
160.7
192.1
128.5
373.5
122.8
-

AbnFrntrMkts
CrysAmber
GLI Finance♦
IndiaCap
Infra India
MMP

Price +/-Week
53.00
-0.25
160.00
-0.50
31.25
1.75
61.00
-0.88
14.00
0.00
2.38
0.00


52 Week
High
Low Yld NAV
54.41 52.50 58.3
173.96 141.00 1.6 163.0
59.24 27.05 16.0 63.17 52.00 74.8
21.99 12.00 48.4
3.73
2.25 -

ShephdNm
Thwaites

Price +/-Week
1215 12.50
128.50
2.00

52 Week
High
Low Yld
P/E
1250
1090 2.14 24.92
133.00 112.00 3.47 7.74

Dis(-)
or Pm
-9.1

-1.8
-18.4
-71.1
-

Vol
000s
5.8
15.0

Guide to FT Share Service
For queries about the FT Share Service pages e-mail

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 FT 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 or call 020 7873 4012.

Data provided by Morningstar

Investment Companies - AIM

-

ISDX


www.morningstar.co.uk


★

24

Monday 30 May 2016

Corporate diary May 30 - June 3

ECONOMIC OUTLOOK

TUESDAY 31

What do Hermès and the Bolloré Group
have in common? On the face of it, the
answer is almost nothing beyond the fact
that both are French and both have
annual meetings this week.
Look closer, however, and at least a
couple of similarities appear. The first is
that the two groups are family controlled
and run. Hermès, known for its luxury
leather handbags and silk scarves, which
has its meeting today, is headed by Axel
Dumas, sixth generation of the founding
family. The transport and logistics group
is headed by Vincent Bolloré, the

industrialist.
The second similarity is that both
groups are facing tougher times. Hermès,
which has proved resilient to the luxury
industry’s changing fortunes, said this
year that 2016 sales growth in constantcurrency terms could be lower than its
annual medium-term target of 8 per cent.
With a drive against lavish
consumption combined with slowing
growth in China, the luxury market has
seen its biggest engine of recent times
shift down a couple of gears. There are
also questions over sales in Europe,
where terrorist attacks in Paris and
Brussels have hit tourism. And the
luxury market in the Americas is in
decline.
The Bolloré Group faces challenges for
different reasons. The group is highly
exposed to the fortunes of the oil
industry, and this month reported that
lower oil prices and freight charges had
hit first-quarter sales.
On the same day, Bolloré shares
suffered their biggest intraday share
price fall in almost 10 years, closing down
8.1 per cent — their lowest level since the
first half of 2013. The fall wiped nearly
€800m from the group’s market value.
Whether any of this will create drama

when shareholders come together on
Friday, however, is unlikely: with 60 per
cent of shares in Mr Bolloré’s hands, the
group AGMs are typically quiet affairs
with few people. When this year’s
Diary commentary from FT reporters. Data, unless
otherwise stated, from Thomson Reuters. Company
announcements, collated by Thomson Streetevents,
are of information publically available before last
week. Results forecasts, from Thomson I/B/E/S, are
for fully diluted, post-tax EPS in local currency for
the stated fiscal period. The comparable period of
the previous year is bracketed. Non-UK reporting
periods are broken by quarter: Q1, Q2, Q3, Q4. UK
periods are designated: Q1, H1 (first half), Q3 and
FY (full year).

Volkswagen results to show post-crisis momentum
Volkswagen’s postponed first-quarter
results offer the carmaker a rare chance
to look beyond the diesel emissions
scandal.
Last month’s annual results were
centred on the crisis involving 11m cars
equipped with test-cheating software,
as the company set aside €16.2bn for
the issue and posted the biggest loss in
its eight-decade history. Next month’s
annual shareholders’ meeting is already
shaping up to be contentious, with

several advisory firms already calling for
investors to vote against management.
But Tuesday’s report and analyst call
are likely to focus squarely on earnings
and momentum.
“First-quarter numbers will be a very
important milestone for VW
management to turn the market’s
attention away from the diesel scandal
towards the turnround of the business,”
said Arndt Ellinghorst, head of auto

meeting takes place, things will probably
be no different. Adam Thomson
Earnings

Volkswagen

FY €15.92 (-€3.20)

WEDNESDAY 1

Cycling retailer Halfords is expected to
post a slight dip in revenues and profits
when it reports full-year results.
Shares in the UK’s biggest seller of
bicycles have fallen 7 per cent in the past
12 months, as the company battled a
slowdown in bike sales at the end of 2015.
Its results have since improved, however,

and like-for-like revenues in the last
quarter rose 2.6 per cent, boosted by the
growing popularity of in-car cameras.
Last week it acquired Tredz, an online

research at Evercore ISI. Analysts
expect €2.8bn in operating income in
the three months ended March 31, down
from €3.3bn a year before. Net income is
expected to drop to €2.4bn from €2.9bn
a year earlier.
The most important item will be the
figures for the core VW brand, where
reforms could have the greatest
potential. Last year the low-margin unit
accounted for half of group revenue, or
€106.2bn, but just 16 per cent of group
operating earnings before special items,
or €2.1bn. Porsche and Audi, the highmargin luxury brands, accounted for
27 per cent and 40 per cent
respectively of group earnings.
“It would be a very encouraging
signal if management could confirm its
ambition for improved earnings
momentum for the brand for the
remainder of this year,” Mr Ellinghorst
said. Patrick McGee
retailer of premium bikes and cycling
accessories, and Wheelies, the UK’s
largest provider of bicycle replacement

for insurance companies, which together
generated £32m in revenues last year.
“The Tredz acquisition is a strategic
positive and extends Halfords’ reach into
the premium cycling segment with access
to brands including Giant and
Specialized,” said analysts at HSBC.
Revenues are expected to dip 0.2 per
cent to £1.02bn, while pre-tax profits are
expected to slide 5.7 per cent to £79.3m.
Paul McClean
With the London housing market in a
state of rapid flux, observers will be
looking to the final-year results of Aimlisted Telford Homes, due on June 1, for

signs of the health of the mid-market.
Telford builds flats with an average
price under £600,000 and is venturing
into institutionally run “build-to-rent”
developments.
Demand has weakened sharply in the
market for homes costing more than
about £1m, but analysts at Barclays say
Telford “operates away from the eye of
the storm, backed by more supportive
fundamentals”. The group said in its last
trading update that it expected pre-tax
profit to come in “slightly ahead of
current market expectations”.
However, a new stamp duty surcharge

on second and additional homes,
amounting to 3 per cent of the purchase
price of a property, may affect Telford’s
market: two-thirds of homes sold so far in
Telford’s Liberty Building on the Isle of
Dogs by the time of its last trading
update went to investors based in Hong
Kong and China. Judith Evans
Earnings

Halfords Group

FY 32.25p (33.50p)

THURSDAY 2

The leading supplier of catalytic
converters, Johnson Matthey, is expected
to post a fall in full-year profit.
Robust performance at its emissions
control technology division, which
supplies the automotive industry, has
been overshadowed by weakness at its
unit that licenses petrochemical plants
amid the crude rout, while another that
refines and makes products from
platinum has felt the impact of low
precious metals prices.
City analysts have pencilled in a 6 per
cent drop in adjusted pre-tax profit to

£414.8m, which excludes one-off factors
such as the gain from a disposal.
There were initially concerns that the
group might be hurt by a fall in demand
for vehicles following the Volkswagen
diesel emissions scandal. But its sales of
catalytic converters grew ahead of the
pace of global car production in the third
quarter, and some analysts believe it
stands to benefit from potential
tightening of environmental regulations.
As carmakers shift to electric-powered
vehicles, Johnson Matthey is also making
a bet on battery technology.
Earnings per share are forecast to fall
almost 9 per cent to 174.22p. Shares in the
company have gained 8.9 per cent so far
in 2016, compared with a flat
performance across the blue-chip index.
Michael Pooler
Earnings

Johnson Matthey

FY 174.22p (190.75p)

US to set agenda as Fed ponders rate rise
With the next Federal Reserve meeting a
matter of weeks away and the possibility
of an interest rate rise still on the table,

data from the US will set the agenda in
the coming week.
US jobs data are out on Friday, and
last month’s disappointing non-farm
payroll reading initially led participants
to write off a June rate rise.
However, hawkish comments from
several Fed policymakers since have
steadily pushed the chance of this
happening back up to more than 30 per
cent, according to futures prices.
Expectations on Friday are for a gain
of 165,000 jobs in May, slightly above
the 160,000 jobs added in April; any
significant deviation from this level will
affect the June decision.
Other important data from the US
come on Wednesday and again on
Friday with the release of manufacturing
and services activity surveys from the
Institute for Supply Management.
Growth in both sectors is thought to
have weakened over May. The

US non-farm payrolls
Monthly change (’000)
300
200
100
0

2014

15

16

Source: Thomson Reuters Datastream

manufacturing reading will slip to
50.5 from 50.8 in April and the services
reading will fall to 55.5 from 55.7.
On Thursday the European Central
Bank will announce its decision on
interest rates for June. Economic data
since the ECB launched fresh stimulus in
March have been generally positive, with
moderate growth in the first quarter.
Inflation data, however, are yet to show
improvement, with overall prices falling
by 0.2 per cent year on year in April.
Mario Draghi has emphasised the
need for patience with inflation, but with
the oil price up more than half over its
level at the start of the year, some
upward movement in the headline rate
should be being seen by now.
On Tuesday there is an initial estimate
of May eurozone inflation; a slight
improvement in headline rate deflation
is still expected, with the year-on-year

change moving to -0.1 per cent.
Thursday’s meeting is unlikely to see
any new policy announcements, though
analysts at HSBC think the ECB may
make some tweaks to the current asset
purchase programme to extend the
range of instruments available. This
would pave the way for a wave of fresh
stimulus in September, meaning deeper
negative rates and greater asset
purchases before the end of the year.
The UK manufacturing Purchasing
managers’ index is out on Wednesday.
The sector fell into contraction in April,
attributed to the economic uncertainty
around the EU referendum. A slight rally
is expected for May with the index
moving to 49.9, remaining within
contractionary territory. Andrew Whiffin

4CAST ECONOMIC CALENDAR
COUNTRY
MONDAY
France
France
Germany
Germany
Germany
Japan
Japan

Japan
Japan

For

Indicator

Units* Mkt* Prev*

Q1
Q1
May
May
Apr
Apr
Apr
Apr
Apr

GDP (prelim.)
GDP (prelim.)
CPI (prelim.)
CPI (prelim.)
Retail sales
Indus. prod. (prelim.)
Indus. prod. (prelim.)
Retail sales
Retail sales

TUESDAY

Eurozone
Eurozone
Eurozone
France
France
Germany
Germany
Germany
Japan
US
US
US

May
May
Apr
May
May
Apr
May
May
Apr
May
Apr
Apr

Flash HICP
2
HICP - core
2

Unemployment
%
Flash CPI
1
Flash CPI
1
Retail sales
1
Unemp. change
5
Unemp. rate (SA)
%
Unemployment
%
Consumer confidence
Personal income
1
Personal spending
1

1
2
1
2
2
1
2
1
2


0.5 0.5
1.3 1.3
0.3 -0.4
0.1 -0.1
2.1 0.7
-1.5 3.8
-5.1 0.2
-0.5 1.4
-1.3 -1.1

-0.1
0.8
10.2
0.3
-0.1
1.0
-5
6.2
3.2
96.0
0.4
0.6

-0.2
0.7
10.2
0.1
-0.2
-1.1
-16

6.2
3.2
94.2
0.4
0.1

COUNTRY For
WEDNESDAY
China
May
China
May
UK
May
US
May

Indicator

Units* Mkt* Prev*

Caixin PMI manuf.
PMI manufacturing
CIPS/Markit manuf. PMI
ISM manufacturing

49.4
50.0
49.9
50.5


49.4
49.4
49.2
50.8

THURSDAY
Eurozone Jun
Eurozone Jun
UK
May
US
May
US
May

ECB - deposit rate
% -0.4 -0.4
ECB - refin. rate
%
0
0
CIPS/Markit constr. PMI
51.8 52.0
ADP emp. survey
5 178 156
Initial claims
5 n/a 268

FRIDAY

Eurozone
UK
US
US
US

Retail trade
1 2.1 2.1
CIPS/Markit serv. PMI
52.6 52.3
ISM non-manuf.
55.5 55.7
Non-farm payroll
5 165 160
Unemp. rate (SA)
% 4.9
5

Apr
May
May
May
May

Mkt* = market consensus estimates. Prev*= previous actual
Units*; 1 = % change on previous period, 2 = % change on same
period in previous year, 3 = national currency bn, 4 = annualised
quarterly % change, 5 = 000s, NSA=not seasonally adjusted,
SA=seasonally adjusted. See more at ft.com/economic-calendar



fm

THE AUTHORITY ON GLOBAL FUND MANAGEMENT | FINANCIAL TIMES | Monday May 30 2016

Initial charges
Lucrative entry
fees attacked

Climate change
Slash greenhouse
gases 57%, investors
tell David Cameron
PAGE 2

British Steel
could rock
pensions
lifeboat

The UK regulator is on the
verge of publishing the
findings of its investigation
into asset management.
One of the areas the FCA is
scrutinising is entry fees, which
are charged to retail investors
to cover the cost of marketing
and distributing a fund. This
fee, which typically ranges

from 2 per cent to a startling
10 per cent of the money being
invested, comes in addition to
annual management and
performance fees

CHRIS NEWLANDS

PAGE 6 & 7

Tracker funds have grown four times faster than traditional active products

Passive funds grow 230% to $6tn
ATTRACTA MOONEY

Fund managers that attempt to beat
the market are losing significant
ground to cheaper rivals as investors
shun stockpickers amid concerns
over bad performance and high fees.
Assets managed in passive mutual
funds, which provide lower-cost
exposure to markets by tracking an
index, have grown four times faster
than traditional active products
since 2007, according to figures from
Morningstar, the data provider.
The findings reinforce concerns
about active fund managers, which
have been attacked by academics

and consumer groups for not offer-

ing investors value for money.
Regulators are also scrutinising
the active management industry.
The UK watchdog is currently investigating fees as part of a wide-ranging
review into the fund industry.
Hortense Bioy, European director
of passive fund research at Morningstar, said the trend for passive management to grow faster than active
investment is set to continue.
“The active management business
is going to shrink at the benefit of
passive. Those [active managers]
that cannot prove they add value will
disappear,” she said.
According to Morningstar, assets

under management in passive
mutual funds have grown 230 per
cent globally, to $6tn, since 2007.
In contrast, assets held in active
funds, where stock pickers try to
beat the market, have grown 54 per
cent, to $24tn.
This is a sharp change on past decades. The active fund management
industry previously benefited from
buoyant equity and fixed income
markets, enabling fund houses to
gather assets quickly and charge
high fees in the process.

In the wake of the financial crisis,
with low interest rates hitting
returns, investors have been paying

much closer attention to costs and
switching high-fee active products
for cheaper passive funds.
There have also been widespread
concerns about the performance of
active products. A study by S&P Dow
Jones Indices recently found that
almost every actively managed
equity fund in Europe investing in
global, emerging and US markets
failed to beat its benchmark over the
past decade.
Stuart Dunbar, a partner at Baillie
Gifford, the £123bn Scottish active
fund manager, said investors are
shifting to passive products because
continued on page 2

The UK lifeboat for capsized corporate pension plans will take its biggest
ever hit if it is called on to rescue the
British Steel pension fund, which
could force the compensation scheme
to overhaul the way it operates.
It emerged last week that the deficit
of the British Steel pension fund had
grown by £200m to £700m since its

last valuation. This would equate to a
£1.5bn blow to the lifeboat scheme,
known as the PPF, based on its own
stricter accounting methods.
Experts said taking on such a large
deficit could force the PPF to take
counter measures to try and balance
its books.
John Ralfe, an independent pensions expert, said: “If the pension
fund ends up in the PPF it will be its
largest hit by a long way, dwarfing its
largest single loss to date of around
£300m. This takes the PPF closer to
the point where it is forced to raise the
levies paid by other pension schemes,
and even cut back the level of compensation it pays to existing pension
scheme members.”
The PPF’s losses are paid for by levies on all other company schemes.
Tata Steel decided in March to
offload its UK operations.
Before the new deficit was revealed,
Alan Rubenstein, chief executive of
the PPF, told a parliamentary committee that the compensation scheme
would be able to take on the British
Steel pensionfund.