FRIDAY 2 JUNE 2017 WORLD BUSINESS NEWSPAPER UK 2.70 Channel Islands 3.00; Republic of Ireland 3.

00

Losing altitude Going local Tech dragons

British Airways struggles to recover US companies are shifting supply Chinas top internet groups take on
after systems glitch BIG READ, PAGE 9 lines back home COMMENT, PAGE 11 Silicon Valley COMPANIES, PAGE 17

May offers Brexit vow as Corbyn Briefing

i Top earners share of income to shrink

surge dims hopes of landslide win

The share of income accrued to the top earners is
expected to shrink in the two years to April 2018, say
official projections that underline reliance on the
wealthy for tax revenues. PAGE 2

i Akzo brushes aside 27bn paint move

3 Return to core election theme 3 Bid to reignite campaign 3 Tory poll lead falls to 9 points
GEORGE PARKER TEESSIDE
ROBERT WRIGHT LONDON
Theresa May has moved to revive her
faltering election campaign with a
pledge to embrace the promise of
Brexit, amid falling poll ratings before
next weeks vote that have alarmed the
Conservative party.
Mrs Mays lead over Labour has fallen
from 20 points at the start of the cam-
paign to an average of just nine points,
according to the Financial Times poll
tracker, suggesting that hopes of a Tory
landslide to bolster her authority before
Brexit talks with the EU are receding.
After losing ground following the Tory
dementia tax proposal, the prime
minister returned to her core election
theme of Brexit, claiming that only she
could deliver a good exit deal and secure
a brighter future for the country.
Speaking at a construction machinery
business in Guisborough on Teesside, a
traditional Labour stronghold that
voted to leave the EU, Mrs May claimed
she could see the promise of Brexit.
If we get Brexit right, then together
we can do great things. We can build a
Britain beyond Brexit that is stronger,
fairer and more prosperous than it is
today, Mrs May said.
She suggested that she had changed
her mind since backing Remain in last
years Brexit poll. You can only deliver
Brexit if you believe in Brexit, she said,
calling it a great national mission.
Mrs May also raised the stakes on
immigration, amid fears in the business
community that Brexit could be accom-
panied by tough new work restrictions.
Asked if the Conservatives would
meet their objective of reducing net
migration to the tens of thousands by
the end of this parliament, she replied:
Thats what we are working for.
Mrs May announced the surprise
snap election with the aim of greatly
increasing her Commons majority of 17.
A failure to secure a more comfortable
majority would weaken her position
going into Brexit talks.
Jeremy Corbyn Most Tory candidates still expect a
delivered his Conservative election victory but some
own Brexit have started blaming Mrs May and her
speech small team of advisers for the conduct of
yesterday at the stumbling campaign, including a
Pitsea Leisure manifesto which one described as a
Centre in monstrous screw-up.
Basildon, Essex Instead, Labours calls for higher
Stefan Rousseau/PA
spending on health and social care
appear to have struck a chord, raising
doubts over whether Brexit remains a
top concern with voters.
The abandoned manifesto pledge
requiring some middle-class families to
pay heavily towards social care was seen
as a turning point, tarnishing Tory
attempts to present a more caring face.
It was a laser-targeted missile aimed
at our core support, said one senior
Conservative MP. If we do win with an
enhanced majority there will be a con-
siderable sigh of relief.
Mrs Mays U-turn on the social care
plan also weakened her claim to offer
strong and stable leadership, but the
prime minister insisted that only she
could deliver a good Brexit deal.
Jeremy Corbyn, the Labour leader
enjoying a revival in the polls, attacked
the Conservative plan for Brexit as
putting jobs and living standards at
risk and threatens to turn our country
into a low-wage offshore tax haven.
He promised a less aggressive tone in
the exit negotiations, saying: Theresa
May says no deal is better than a bad
deal. Lets be clear: no deal is in fact a
bad deal. It is the worst of all deals.
Labour, which opposed Brexit but
accepted the referendum outcome,
planned to confirm the right of EU citi-
zens resident in the UK to stay in the
country, Mr Corbyn said. The party
would also press to ensure tariff-free
access to EU markets. Britain certainly
can thrive and prosper outside the EU,
he said. Our businesses are creative,
industrious and inventive. But they
need access to European markets.
Emily Thornberry, shadow foreign
secretary, ruled out a coalition govern-
ment if Mr Corbyn failed to win a Com-
mons majority, as Labour faced intense
questioning for the first time about a
possible election victory. She said that
Labour would form a minority adminis-
tration and challenge other parties to
vote down its Queens Speech proposals.
Notebook & Letters page 10
Philip Stephens & Martin Wolf page 11
A bitter three-month fight between two top paint
groups was won by Dutch company Akzo Nobel
after US rival PPG said it was abandoning its
26.9bn pursuit. PAGE 13; LEX, PAGE 12; ANALYSIS, 16
i FirstGroups caution rattles investors
FirstGroup posted better than
expected results but its shares
fell as investors were unnerved
by the bus and rail operators
cautious outlook and failure to
reinstate its dividend. PAGE 18
i EU and Rome to rescue Monte dei Paschi
Brussels and Italy have brought the saga of the oldest
Italian banks troubles to a close by agreeing a rescue,
asking investors to take a hit and executives to adopt
a cap on pay. PAGE 4; EDITORIAL COMMENT, PAGE 10
i Putin aide urges Russia oil privatisation
An adviser to Vladimir Putin, Russias president, has
called for the full privatisation of the countrys oil
sector, upping the ante in a heated debate over long-
delayed economic reforms. PAGE 7
i Pimco hit by Banco Popular bond losses
Pimco has been caught out by the plunge in the price
of Banco Populars riskiest bonds after it was left
holding hundreds of millions of euros in exposure to
the ailing Spanish bank. PAGE 13
i Macron adviser faces sleaze inquiry
A French prosecutor has opened an inquiry into the
financial dealings of Richard Ferrand, right, the head
of Emmanuel Macrons successful presidential
campaign, following claims of sleaze. PAGE 4
Datawatch
GDP growth in 2017 Economists are
By date of forecast, annual % change becoming more
optimistic for
2.0 the eurozones
EU 1.8 growth. GDP
expansion
1.6 forecasts for this
1.4 year were revised
Eurozone 1.2 up to more than
1.7 per cent in
1.0 May, from 1.4 per
2016 17 cent or less after
Sources: Thomson Reuters Datastream;
the UKs vote to
Consensus Economics leave the EU.

More pain for BA passengers as airline

Germany feels betrayed
by rifts in Atlantic alliance
Nowhere have feelings been as raw as
in Germany over the cracks appearing
in the transatlantic alliance under
Donald Trumps presidency. The latest
divisions on the Paris climate change
accord have only accentuated the
sense of betrayal in Berlin. This was a
system designed and constructed by
the Americans, and now the Americans
are dismantling it, said Norbert
Rttgen, chairman of the Bundestag
international affairs committee.
Analysis i PAGE 6
and insurers haggle over claims bill
CLAER BARRETT
PERSONAL FINANCE EDITOR
British Airways passengers seeking
compensation for their bank holiday
travel disruption face further chaos as
the airline battles with insurance com-
panies over who will foot the bill.
In the aftermath of the computer sys-
tems outage, which affected 75,000 pas-
sengers, the airline promised to com-
pensate customers who had incurred
disruption expenses including the
cost of hotels, meals and phone calls.
That was on top of EU-dictated com-
pensation worth up to 600 per passen-
ger for delayed or cancelled flights.
However, BA customers attempting
to claim for non-flight related expenses
online are being told to claim on their
travel insurance in the first instance.
That has drawn fury from consumer
campaigners, who say it could leave pas-
sengers out of pocket if they have an
excess on their policy.
Before they can enter any details of
their claim, BAs online compensation
form asks customers if they had travel
insurance for the disrupted journey.
If the passenger answers yes, BA then
asks if they have claimed or intend to
make a claim on their travel insurance.
If the passenger answers no, the BA
website prompts: You should make a
claim with your travel insurer in the
first instance. If you have expenses that
either you were not successful in claim-
ing or which are not covered by your
policy, you may claim for only these
expenses in the form below.
BAs website does not make clear if the
airline will refund the cost of any excess
on travel insurance policies. That has
prompted a complaint from the Associ-
ation of British Insurers, the trade
group, which accused the airline of giv-
ing passengers the wrong information.
Any cover available under travel
insurance will usually kick in only if
compensation is not available from any
other source, the ABI told the Financial
Times. Those affected should seek
compensation, and any refunds of
expenses, in the first instance from
British Airways.
The ABI asked BA to change the word-
ing and structure of its online claim
form to reflect that, and BA later said it
would update the language. We will
fully honour our obligations and would
encourage customers to submit their
expense claims to us.
BA said it has put additional resources
into its call centres to resolve the claims.
Flagging carrier page 9
Warning on BA pension page 18

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2 FINANCIAL TIMES Friday 2 June 2017

NATIONAL

HMRC projections Pharmaceuticals

Top earners share of income set to shrink EU medicine

agency warns
Lack of earnings growth manifesto to increase taxes on the rich.
Andrew Hood of the Institute for Fis-
marked stagnation of top earnings
growth in recent years has been due to a
The analysis showed the share of total
before-tax income taken by the top 1 per
45p. Taxes on higher earners have also
risen with the removal of personal
drug groups
for the rich puts focus on
contribution to revenues
cal Studies, an independent think-tank,
said: Those concerned about inequal-
number of factors, including the retire-
ment of postwar baby-boomers and
cent of taxpayers declined from 13.4 per
cent in 2007-08 to 12.3 per cent in
allowances for those earning more than
100,000 a year and a corresponding
of post-Brexit
VANESSA HOULDER
ity might not be concerned about the
fall in the top income share, but it does
have implications for government reve-
with younger, less well-paid people
replacing them in the workforce. The
OBR also expects top incomes to be dis-
2014-15, reflecting a reduction in
income inequality. By contrast, the
share of total tax paid by the top 1 per
rise in personal allowances for those
paying the basic rate. Progressivity has
also increased as a result of lower limits
import levies
The share of income accrued to the top nues. proportionately hit by the UK exiting cent of taxpayers increased from 24.4 on tax relief on pension contributions.
earners is expected to shrink in the two The projections, published by HM the EU due to effects on higher-paying per cent in 2007-08 to 27.2 per cent in Most other taxes are far less heavily SARAH NEVILLE GLOBAL
PHARMACEUTICALS EDITOR
years to April 2018, according to official Revenue & Customs, suggest that the sectors, including financial services. 2014-15. weighted to rich taxpayers. In a recent
projections that underline reliance on share of income reported by the top The decision by George Osborne, the In 2014-15, the bottom half of taxpay- study, the IFS found that the top 10 per Medicines made in Britain will be
the wealthy for tax revenues. 1 per cent of earners is likely to shrink former chancellor, to increase the divi- ers were liable for 9.7 per cent of total cent of households paid 47 per cent of treated as imports by the EU and the
The decline is likely to reflect a lack of by 1.1 percentage points, to 12 per cent dend tax rate prompted many company income tax paid, while the top half were income taxes, 33 per cent of national life sciences sector will face a series of
earnings growth at the top of the income in the two years to 2017-18. The share of owners to withdraw dividends from liable for 90.3 per cent. insurance contributions and 19 per cent new regulatory obligations in the event
distribution, as well as efforts by com- income tax paid by the top 1 per cent is their businesses ahead of the tax change The progressivity of the tax system of value added tax. of a cliff-edge Brexit, the European
pany owners to avoid higher dividend forecast to fall from 28.9 per cent to 26.9 in April last year. the elevation of tax rates to corre- The think-tank said it was too difficult Commission has warned.
taxes. per cent in the year to 2016-17 before Alongside the projections based on spond with higher incomes has to determine which parts of the income
The figures are published at a time rising to 27.7 per cent in the current survey data and the OBRs economic increased in recent years. distribution paid other taxes, although A document issued jointly by the com-
when the potential tax take from top financial year. assumptions, HMRC this week pub- Since 2010, taxes on higher earners it was clear that capital gains tax, inher- mission and the European Medicines
earners is coming under renewed scru- The Office for Budget Responsibility, lished analysis of income tax data have increased with the introduction of itance tax and stamp duty were largely Agency also states that UK companies
tiny, after the Labour party pledged in its the fiscal watchdog, has said that a through 2014-15. the 50p rate, which was later reduced to paid by richer groups. could have to set up some operations
related to drug safety and approval
within the EU to ensure their products
comply with European requirements.
Authorisation to sell a drug within the

Sour taste European Economic Area would have to

be given by at least one member states
regulatory body, it adds.
Wine prices lift The paper is a stark reminder of the
disruption UK-based companies could
on pounds fall face if Britain and the EU struggle to
reach agreements on regulation of vari-
ous sectors post-Brexit.
In response, the Association of the
British Pharmaceutical Industry said
Wine prices have hit record highs in setting up such operations could take
the UK, according to industry figures, several years, adding to the pressure on
as the pounds weakness pushed up Britain to negotiate a deal or a transi-
the cost of imported bottles. tional agreement before the expected
A bottle of wine cost an average of date of the UKs exit from the EU on
5.56 in the 12 weeks to 25 March, March 31 2019.
3 per cent more than in the same At present the EMA, based in Canary
quarter last year, according to the Wharf, London, authorises medicines
Wine and Spirit Trade Association. for sale across the EU. However, the 27
Most of the increase took place this remaining EU states have made clear
year. The average price of a bottle of they are not prepared to allow the
wine has risen more in the last 12 agency to remain on UK soil after Brexit.
weeks than it has in the last two The paper also makes clear that in the
years, the WSTA said. event of no deal, substances used in the
The WSTA predicted last October manufacture of medicines and the fin-
that the price of wine imported from ished product will be considered
the EU would rise by an average of imports if they originate from the UK.
29p a bottle within a year. It has This raises the prospect of companies
increased by 18p so far. shifting manufacturing operations in an
The UK Trade Policy Observatory, attempt to avoid any new import tariffs.
a think-tank, predicts wine prices will Industry leaders expressed concern
be 22 per cent higher by 2025. that the documents existence already
Miles Beale, WSTA chief executive, assumed a worst-case scenario in which
said the rise in price did not include no deal could be reached to harmonise
the 3.9 per cent alcohol duty increase regulations between the EMA and UK.
announced in the March Budget. Virginia Acha, executive director of
Scheherazade Daneshkhu the Association of the British Pharma-
ceutical Industry, said Brexit negotia-
Alex Segre/Alamy
tions had yet to start and their ultimate
outcome is unknown, so it seems pre-
mature to advise companies to prepare
Labour market only for an outcome where the UK is iso-
lated from the European system.

TUC highlights job insecurity as proportion of black temporary workers rises She added that, in an outcome where
the UK was isolated from the European
system for medicines regulation, com-
panies in the UK will have to consider all
SARAH O'CONNOR 2016. Over the same period, the propor- Theresa May, prime minister, has in favour of some of Mr Taylors ideas. lot of your reputation is built on a partic- options for the location of sites, systems
EMPLOYMENT CORRESPONDENT
tion of white workers on such contracts asked Matthew Taylor, chief executive In most cases theyve been really ular platform and that makes it difficult and staff, to meet the requirements of
An increasing share of black workers in held steady at 2.9 per cent. of the RSA think-tank, to conduct an supportive of a lot of the stuff coming tomovetoanother,MrNevinsaid. the EMA and other regulatory bodies.
Britain are in temporary jobs, accord- Overall, the TUC claimed that non- independent review into whether work- out around the review and the propos- The CBI, Britains biggest business In particular, Britains lucrative
ing to research that will fuel the debate white workers were about a third more ers rights are keeping pace with the als; it hasnt been the default opposition lobby, has also proposed changes to generic industry would be hit by the
about insecurity and racial disparities likely than white workers to be on tem- changing world of work. or concern that you might expect from address concerns about insecurity. It mooted treatment of finished medicines
in the labour market. porary or zero-hours contracts. His recommendations, due later this employers, said Seamus Nevin, head of has suggested the government could as imports. The British Generic Manu-
Black, Asian and ethnic minority month, are likely to span self-employ- IoD employment and skills policy. give zero-hours workers the right to facturers Association estimates its med-
With employment rates at record highs, workers are being forced into low-paid, ment, zero-hours contracts, temporary The IoD wanted to see greater clarity request regular hours. Mr Taylor called icines save the National Health Service
policymakers are turning attention insecure work, and its getting worse," work and new gig economy roles cre- on legal definitions of employee, wor- this a good idea at an event last month. about 13bn a year.
from the quantity of jobs to their qual- said Frances OGrady, TUC general sec- ated by companies such as Uber. ker and self-employed a grey area Trade unions are hoping for more The document adds that each com-
ity. Both the Conservatives and Labour retary. The Institute of Directors, an employ- that had led to tribunal fights over empl- radical proposals from him. The TUC pany seeking to import medicines into
have promised to boost workers rights Trade unions and employers disagree ers organisation, said its members are oyers misclassifying staff. Employers wants compulsory zero-hours contracts the EU would have to establish a batch
if they win next weeks election. They about such jobs. Unions say they leave were often as confused as workers about to be banned and employment tribunal control site within a member state,
have also pledged to tackle racial and workers in a precarious position, while where the legal boundaries lay, he said. fees to be scrapped. while also setting up pharmacovigi-
gender imbalances in the workforce. employers say they provide people with 7.8% 6.4% The IoD has also called for gig workers It has also suggested that employers lance teams in an EU member state.
Analysis of official data by the Trades flexibility. Even so, there appears to be Proportion of Percentage of on platforms such as Uber to be allowed should publish ethnic monitoring The UKs Brexit department did not
Union Congress shows the proportion of an emerging consensus between empl- black workers in black workers to transfer their ratings when they move reports on recruitment, pay and immediately respond to requests for
black workers in temporary jobs rose oyers, unions and government on the temporary jobs in same class of to a different platform. If youre a driver employment type. Mrs May has already comment.
from 6.4 to 7.8 per cent from 2011 to need to improve the quality of work. in 2016 jobs in 2011 with Uber or working with TaskRabbit, a met this proposal halfway. Philip Stephens and Martin Wolf page 11

MAKE A SMART INVESTMENT Historical trends Reluctant young voters pose test for campaigns
Subscribe to the FT today at FT.com/subscription
percentage points lower than for all over-65s. Yet some current polls imply Second, and perhaps more seriously,
other age groups. (Note: the figures are turnout rates in excess of 80 per cent it is also possible that younger people
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK 2.70 Channel Islands 3.00; Republic of Ireland 3.00
survey-based estimates, so are subject even among 18- to 24-year-olds and as who are being surveyed by pollsters are
Trump vs the Valley
Tech titans need to minimise
political risk GILLIAN TETT, PAGE 13
A Five Star plan?
Italys populists are trying to woo
the poor BIG READ, PAGE 11
Dear Don...
Mays first stab at the break-up
letter ROBERT SHRIMSLEY, PAGE 12
to margins of error.) much as 90 per cent overall. not typical of their demographic. In
HMRC warns Lloyds of Brussels Insurance market
to tap new talent pool with EU base
UK 3.80; Channel Islands 3.80; Republic of Ireland 3.80
Briefing

THE END
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017
When turnout for elections plum- This presents two potential dangers. other words, they may well vote but
customs risks
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

meted after 1992, it did so dispropor- First, and most intuitively, it is possible people like them who have not taken
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE TECHNOLOGY IS
Atlantic. PAGE 15; CHINA CURBS HIT DEALS, PAGE 17

being swamped i Report outlines longer NHS waiting times

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

tionately among younger people. that people who are telling pollsters that part in polling surveys may stay at home
i Emerging nations in record debt sales Warning: this article may be
FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

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

3 Confidence in IT plans has collapsed

3 Fivefold rise in declarations expected
JAMES BLITZ WHITEHALL EDITOR
A computer system acquired to collect
duties and clear imports into the UK
may not be able to handle the huge
surge in workload expected once Britain
Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
A survey has revealed that a
How To Spend It
Though it has since recovered, the dif- they will vote will in fact fail to do so. on election day, or may vote a totally dif-
adjust its negotiation position with the
record 455 tall buildings are
planned or under construction
in London. Work began on
over disputed painting of Jane Austen
engulfed in
EU, a Whitehall official said. If running almost one tower a week
our own customs system is proving during 2016. PAGE 4
much harder than we anticipated, that
ought to have an impact on how we i Tillerson fails to ease Turkey tensions
press for certain options in Brussels. The US secretary of state has failed to reconcile

fresh tax probe

leaves the EU, customs authorities have
admitted to MPs.
HM Revenue & Customs told a parlia-
mentary inquiry that the new system
needed urgent action to be ready by
March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time has collapsed.
Election analyst Matt Singh ferential turnout by age remains consid- There is substantial evidence that voters ferent way.
In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen. PAGE 9
Chic new lodgings
delivering CDS was challenging but
achievable. But, it added, CDS was a i Toshiba investors doubt revival plan
in Scotland
complex programme that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
HMRC assigned a green traffic light to filed for Chapter 11 bankruptcy protection. PAGE 16
3 Blow for bid to clean up Swiss image

Setting up a digital customs system
has been at the heart of Whitehalls
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
erably wider than it was until a genera- of all ages overestimate their likelihood It is well known that pollsters over-
CDS, indicating it would be delivered on
time. But last month, it wrote to the i HSBC woos transgender customers
committee saying the programme had TheRALPH
bank hasATKINSunveiled
ZURICHa range of gender-neutral it followed a strategy offull client tax
been relegated to amber/red, which DUNCAN
titles such asROBINSON BRUSSELS
Mx, in addition to Mr, Mrs, Misscompliance
or but was still trying to
means there are major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.

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

Theresa May announced in January that
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
The revelations about the system,
tion ago. It is estimated that in 2015 of voting, and that this tendency is sample people with a strong interest in
international trade once the UK leaves its image as a tax haven. and certain ofits employees. The UK
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.
HMRCs letters to the select commit-
tee, which will be published today, pro- AFP
Terror attacks inwith
co-operating

were contacted
Highlighted
western

attack byOthers

parts in Germany wereBrussels

Europe after
authorities
offices in London, Paris and Amsterdam
Recent

newspaper in any manner is not permitted without

The Swiss bank said yesterday it was tax authority added: The international
reach
itsattacks
notably the message
2011
of this investigation sends a clear
that there is no hiding place for
massacre bythose seeking to evade tax.
local officials
concerning client tax matters. Anders BreivikDutch
Norway, the
in prosecutors, who initiated the
Dutch authorities said their counter- action, said they seized jewellery, paint-
attacks in Paris
also involved, ings and gold ingots as part of their
The lure of the exotic
Robin Lane Fox on the flair
of foreign flora HOUSE & HOME

Number One Southwark Bridge, London SE1 9HL

called Customs Declaration Service, are vide no explanation for the rating Lloyds of London chose Brus- insurers to follow. Most of the EU, with Dublin and Luxem-

the publishers prior consent.

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

whether Whitehall can implement a
host of regulatory regimes in areas
ranging from customs and immigration
to agriculture and fisheries by the
time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
caused by Mrs Mays unexpected deci-
sion to leave the EU customs union.
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
cities in its decision to set up an
EU base to help deal with the
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance mar-
ket, said he expected other
will be reinsured back to the
syndicates at its City of London
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
Londons specialist insurance
groups after the UK leaves the
homes for the industry. But
Mr Nelson said the city won on
its transport links, talent pool
and extremely good regula-
tory reputation.
Sources: Janes Terrorism and Insurgency Centre terror incidents in
Lex page 14
Insurers set to follow page 18
Paris
The inquiries threaten to undermine
efforts by the countrys banking sector
to overhaul business models and ensure
customers meet international tax
requirements following a US-led clamp-
billions of dollars in fines.
Turnout among the younger genera- turnout among under-25s was around greater among lower-turnout demo- politics, though the precise nature of
bombings have
thousand bank accounts opened in
bucked the trend
Switzerland and not declared to French
of generally low
tax authorities.
fatalities from
The Swiss attorney-generals office
western Europesaid it was astonished at the way this

Financial Times and FT are registered trade marks

down on evaders, which resulted in operation has been organised with the
deliberate exclusion of Switzerland. It
The probes risk sparking an interna- demanded a written explanation from
tional dispute after the Swiss attorney- Dutch authorities.

City watchdog sends a clear message as

Published by: The Financial Times
banker loses job over WhatsApp boast
tions has become central to what we 30 percentage points lower than among graphic groups. this bias is not (yet) well understood.
generals office expressed astonish- In 2014, Credit Suisse pleaded guilty
ment that it had been left out of the in the US to an extensive and wide-
actions co-ordinated by Eurojust, the ranging conspiracy to help clients THE RISE
Escape OF
the taper ECO-GLAM
trap
Limited,
EUs judicial liaison body.
Credit Suisse, whose shares fell 1.2 per

subject ofinvestigations in the Nether-

lands, France and the UK. The bank said in Paris
of The Financial Times Limited.
evade tax. It agreed to fines of $2.6bn.
Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
Houlder in London, and Michael Stothard
Austens descendants insist the Rice portrait depicts her as a girl see magazine Bridgeman Art Library
How high earners can evade
a pension headache FT MONEY

might expect on June 8. That raises the risk of a polling blind

LAURA NOONAN DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to

Number One Southwark Bridge,

JENNIFER THOMPSON LONDON
Christopher Niehaus, a former Jeffer- ban people from installing apps on their

Shutdown risk as border

wall bid goes over the top
A boastful WhatsApp message has cost
a London investment banker his job
and a 37,000 fine in the first case of
regulators cracking down on commu-
nications over Facebooks popular
chat app.
ies banker, passed confidential client
information to a personal acquaint-
ance and a friend using WhatsApp,
according to the FCA. The regulator said
Mr Niehaus had turned over his device
to his employer voluntarily.
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set a precedent
in that it shows the FCA sees these mes-
saging apps as the same as everything
else.
The
BrusselsFinancial
takes tough stance Times
on Brexit
with Spain handed veto over Gibraltar
and its journalism are subject to 390_Cover_PRESS.indd 1 19/01/2017 13:57

London SE1 9 HL, United Kingdom.

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

a self-regulation regime under the FT Editorial Code

avert a US government shutdown after
April 28 have resisted Donald Trumps
attempt to tack funds to pay for a wall
on the US-Mexico border on to
stopgap spending plans. They fear
that his planned $33bn increase in
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
staffs communication.
Several large investment banks have
confidential information on the messag-
ing system on a number of occasions
last year to impress people.
Several banks have banned the use of
new media from work-issued devices,
but the situation has become trickier as
Stark differences in voting intention spot, where younger people overall are
included the identity and details of a
client and information about a rival of ALEX BARKER BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
Jefferies. In one instance the banker GEORGE PARKER LONDON Gibraltar yesterday hit back at the status within the single market after
boasted how he might be able to pay off STEFAN WAGSTYL BERLIN clause, saying the territory had shame- Brexit, the guidelines state it would
his mortgage if a deal was successful. The EU yesterday took a tough opening fully been singled out for unfavourable require existing regulatory, budgetary,
Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatment by the council at the behest of supervisory and enforcement instru-

Tel: 020 7873 3000; Fax: 020 7407 5700
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
banks move towards a bring your own
device policy. Goldman Sachs has
clamped down on its staffs phone bills
of Practice: www.ft.com/editorialcode
Younger people have always been less likely to vote
feries and resigned before the comple- Britains plea for early trade talks and Spain. Madrid defended the draft ments and structures to apply.
tion of a disciplinary process. Living wage rise to pile explicitly giving Spain a veto over any clause, pointing out that it only reflected Mr Tusk wants talks on future trade
Jefferies declined to comment while pressure on care services arrangements that apply to Gibraltar. the traditional Spanish position. to begin only once sufficient progress

to accept the proposals. encryption system that cannot be
US budget Q&A and accessed without permission from the
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
as iPhone-loving staff spurn their work-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
by age have increasingly raised the not just less likely to vote than the polls
Facebook did not respond to a request Senior EU diplomats noted that has been made on Britains exit bill and
for comment. About 2.3m people will benefit from European Council president Donald Mr Tusks text left room for negotiators citizen rights, which Whitehall officials
Additional reporting by Chloe Cornish todays increase in the national living Tusks first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are
Lombard page 20 wage to 7.50 per hour. But the rise which are an important milestone on minister Theresa Mays allies insisted possible if certain conditions are met.

Editor: Lionel Barber Subscribe In print and online

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

question of who will actually go out and indicate, but may even vote differently
STOCK MARKETS CURRENCIES INTEREST RATES new living wage and the increase is The decision to add the clause giving British officials admitted that the EUs after Brexit with a trade deal.

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Friday 2 June 2017
Rising Rudd tipped for greater heights
with post-election role as chancellor
Home secretarys confident campaign performances fuel rumours of promotion in any reshuffle
HELEN WARRELL AND GEORGE PARKER
Amber Rudd has told friends she was
surprised to be appointed home secre-
tary last July, just six years after being
elected an MP.
But chosen by Theresa May, the prime
minister, to represent the Conservatives
in Wednesdays televised general elec-
tion debate, and tipped as a future chan-
cellor in the event of a post-election cab-
inet reshuffle, it seems that Ms Rudds
rise through Britains great offices of
state may not be over.
Ms Rudd came under sustained pres-
sure in Wednesdays televised debate
against leading figures from six of Brit-
ains other political parties, who accused
Mrs May of running scared ahead of
next weeks general election. The home
secretary stood in for Mrs May just two
days after the death of her father, a
move that was widely seen as a sign of
her serious-minded manner.
Born in London in 1963 to stockbro-
ker Tony Rudd and magistrate Ethne
Fitzgerald, Ms Rudd did not show an
early interest in politics. She attended
Cheltenham Ladies College and the
University of Edinburgh, where she
read history, and subsequently used her
contacts book to good effect, finding
extras to wear smart outfits in the
1994 film Four Weddings and a Funeral.
She embarked on a career in finance at
JPMorgan before working in venture
capital and financial journalism.
Ms Rudd was married to the late
writer AA Gill in the early 1990s. The
couple had two children and later
divorced. It was not until she was in her
40s that Ms Rudd decided to forge a
career as an MP, and was elected to rep-
resent Hastings and Rye in 2010.
I decided to take my life back, she
told the Financial Times in 2013. In my
20s I was leaving university, getting
married or having a baby. And then, in
my 30s, I was just keeping my head
above water. When I hit 40 I thought I
have got to get a grip of my life and really
point it in the direction I want it to go
rather than just swim hard against the
current.
The home secretary often highlights
two specific moments as turning points
in her career. The first was a Commons
debate on shale gas fracking in January
2015, when as a junior energy minister
she was forced to defend a policy that
was being rewritten by then prime min-
ister David Cameron as she spoke.
As a note was passed to her outlining
the government climbdown, Ms Rudd
broke off her argument mid-sentence
with the words: On the other
hand . . . MPs were reduced to laugh-
ter, but Mr Cameron noted the calm
manner with which the junior minister
had handled the issue.
The second was Ms Rudds appear-
ance in a rumbustious televised debate
in the run-up to the EU referendum,
when she was given the job by Mr Cam-
eron of taking out former mayor of Lon-
don Boris Johnson, a frontman for the
Leave campaign. Her assertion that Mr
Johnson was not the man you want to
drive you home at the end of the
Ukip deserters hold key to Conservative hopes in former mining town
Concern over public services
makes mass switch to May
unlikely in solidly Labour seat
ROBERT WRIGHT MANSFIELD
The window of the Conservative cam-
paign office on the market square in
Mansfield proudly displays one of the
least scientific and most emphatic opin-
ion polls of the election.
Local voters have put balls in a tube to
indicate who would be the better prime
minister: there are 71 for Theresa May
and 29 for Jeremy Corbyn.
But they did this 10 days ago, during a
campaign event. Ben Bradley, the Con-
servative candidate in this former min-
ing town in Nottinghamshire, accepts
that voters might be less enthusiastic
about his party now, after the Conserva-
tives botched manifesto launch and a
hurried U-turn on social care costs.
People have had questions, Mr Brad-
ley said, diplomatically.
His guardedness reflects a sharp
lengthening of the Tories odds of taking
seats like Mansfield, after a big drop in
their poll lead over Labour. Sir Alan
Meale of Labour held the seat in 2015
with 18,603 votes, a majority of 5,315
over the Conservatives.
Conversations with some of the towns
Journey from silver
spoon to red boxes
3 Amber Rudd was born in London in
1963 to stockbroker Tony Rudd and
magistrate Ethne Fitzgerald
3 Educated at Cheltenham Ladies
College and Queens College, London,
before reading history at the University
of Edinburgh
90,000 or so people illustrate his partys
cause for concern. While some say they
plan to desert the UK Independence
party, which won 11,850 votes in 2015,
for the Conservatives, other former sup-
porters say they have doubts about the
risks to public services if the Tories
return. Mr Bradleys hope is that people
will still see Mrs May as a better leader.
The reaction to the conversations we
are having is very positive, he said.
There are other factors to justify opti-
mism. Outside, a campaign volunteer in
a Vote Leave T-shirt from last years
EU vote, explains why he stopped voting
Labour. His dislike of the EU made him
switch to Ukip, he said, and he is now
proud to back the Conservatives.
[Labour] havent looked after work-
ing people, the former National Union
of Mineworkers member said.
In the Brexit referendum, 71 per cent
of Mansfield voted to leave the EU,
although both Sir Alan and Mr Bradley
came out against Brexit.
Anthony Wells, director of research at
polling agency YouGov, said Ukip voter
behaviour would be decisive in this elec-
tion. If large numbers of former sup-
porters of Ukip, which won 12.6 per cent
of the UK vote in 2015, desert the party
after its success in winning Brexit and
vote Conservative in marginal seats
such as Mansfield, the result could be a
significant majority for Mrs May.
FINANCIAL TIMES
NATIONAL
evening was criticised by some in the
media for its personal venom. Mr John-
son still frequently greets Ms Rudd with
the words: Want a lift?
As home secretary, Ms Rudd has been
more subdued, following in Mrs Mays
footsteps by being tough on immigra-
tion and focused on security.
Last October, her plan to make com-
panies publish lists of foreign workers
sparked surprise from UK businesses
and international heads of state, and led
to suspicions that she was becoming an
immigration hardliner.
The policy was quickly dropped, but
not without damage to her reputation.
Diane Abbott, shadow home secre-
tary, said she thought the policy was a
sign that Ms Rudd was being run by
remote control from Downing Street.
Ms Rudds continuation of Mrs Mays
priorities at the Home Office means that
nearly one year into the job, she has
brought little in the way of distinctive
ideas or leadership.
Nick Pearce, professor of public pol-
icy at the University of Bath and a
former Labour Home Office special
adviser, suggests the apparent absence
of signature policies could be due to the
constraints of Brexit.
Since she became home secretary,
and until the Manchester attack, Amber
Rudd would have been preoccupied
with making decisions about the future
of the post-Brexit immigration system,
which means she still hasnt done any-
thing she will be publicly tested on,
Prof Pearce said.
While staying loyal to the prime min-
ister in public, she has apparently been
willing to question Mrs May in private.
The home secretary is among a number
of ministers thought to be critical of Mrs
Clockwise from Mays insistence that international stu-
above: Amber dents are included in the migration tar-
Rudd arrives for get. She has been at pains to stress that
the TV debate the Tory plan to reduce net migration to
on Wednesday; the tens of thousands is only an aim
campaigning with no prescribed timetable.
with her former She also occasionally hints at her
husband AA Gill strongly pro-EU views. In April she said
in 2005; with an increased Tory majority would give
Boris Johnson, Mrs May the opportunity to arrive at
whom she potential compromises within the EU.
challenged in an The prime minister later disowned the
earlier TV remark.
debate on Brexit Nevertheless, Mrs May considers Ms
Dan Kitwood/Getty;
Paul Hackett/Reuters
Rudd a reliable ally. She is one of the few
cabinet ministers to be given a high pro-
file during the general election cam-
3 Joined JPMorgan after graduating, 3 Made private secretary to then paign, even before the Manchester ter-
moving on to various roles with other chancellor George Osborne in rorist attack. In interviews following the
companies September 2012 attack, she headed off suggestions that
the Security Service, or MI5, ignored
3 Married the writer AA Gill who 3 Made assistant whip in October 2013 warnings about bomber Salman Abedi.
called her the silver spoon in 1990. Her confident performances have by Mr Corbyn on issues such as nuclear
They had two children. The couple 3 Appointed minister to the Department fuelled suggestions in recent weeks that
separated in 1995, and later divorced for Energy and Climate Change in July she could be in line for a promotion to
2014 the Treasury as chancellor, if Mrs May
3 Selected as Tory candidate to contest carries out a ruthless reshuffle and
the safe Labour seat of Garston, 3 Promoted to energy secretary in May removes Philip Hammond.
Liverpool, in 2005. Beaten into third 2015 after that years general election She regarded Cameron and Osborne
place as Maria Eagle retained the seat as a slightly silly boys club, said a
3 Supports Remain campaign in run-up friend of the prime minister and former
3 Chosen in 2006 to contest Hastings to EU referendum on June 23 2016 Home Office colleague. Promoting
and Rye. Moved to the area in 2007 and Amber Rudd to chancellor would be the
was elected as MP for the constituency 3 Becomes home secretary in Theresa ultimate proof that she is here to do
in 2010 Mays first cabinet in July 2016 things differently.
Mansfield. Brexit effect
Where do those voters go? Mr Wells
Constituency in context: Mansfield said. Could they be more likely to go off
Blocks represent UK constituencies, piled up to show the 2015 result (%) towards the Conservatives, or do those
distribution of the data. Mansfield is circled in black 39.4
people go back to their old habits of vot-
Con Lab Ukip Lib SNP Grn Plaid Other 28.2 25.1
ing Labour?
Mansfield is typical of many Labour-held seats that voted There is little doubt that the Labour
Leave last year: much of its fate next week hangs on partys manifesto, with its pledges on
whether 2015 Ukip voters move to the Conservatives or 3.5 3.8 public spending and services, has won
simply stay away from the ballot box voters. On Rutland Street, south of the
Mansfield returned the seventh-highest Leave vote in the UK... town centre, Sarah Smith, a 55-year-old
Share of vote for Leave in EU referendum (%) former bus driver who has retired bec-
20.5 50 70.9 75 ause of ill health, is agonising over her
choice. She has voted Conservative in
every general election except 2015 but is
concerned at the state of public services.
I have three grown-up but still young
The ex-mining town is still thoroughly working class... children, she said. I worry for them.
Share of working population employed using machinery (%) Further down the street another voter
0.9 11.7 19.5 is more emphatic. A longstanding Tory,
she has switched to Labour because Mrs
May has tunnel vision and talks only
about Brexit rather than public services.
I also work for the NHS, she added.
And wages are among the lowest in the UK Both voters spoke as Sir Alan can-
Gross pay (000) vassed along Rutland Street. Their posi-
20 22 46 tive reactions and that of some other
voters put a noticeable spring in his step,
even after 30 years as Mansfields MP.
A lot of people like the manifesto, he
said. Were getting a good response.
Ten days ago national polls had 45 per cent of 2015 Ukip voters moving to the His comments reflect the impression
Tories just enough to turn this red seat blue but since then there has been a that the result in Mansfield, having
rise in the share saying they will vote Labour, which could be crucial in thwarting
looked likely to favour the Conserva-
the Conservatives tives, is more finely balanced.
Source: FT research FT graphic by John Burn-Murdoch and Federica Cocco Notebook page 10
3
Digital battle
Labour strikes
chord online
with air on
a shoestring
DAVID BOND MEDIA CORRESPONDENT
The Conservatives will spend more than
1m on their online campaign ahead of
next weeks election, but groups sup-
porting the Labour party are also land-
ing hits despite shoestring budgets.
Liar, Liar, a song attacking Theresa
May and produced by a London-based
group of session musicians called
Captain Ska, is edging closer to number
one in the UKs music download charts,
according to the Official Charts Com-
pany.
In just five days, the song, which
includes clips of Mrs Mays speeches and
references to cuts to public services, has
been downloaded 30,000 times and
streamed more than 100,000 times,
taking it to number three in the charts.
It has also been viewed more than 1m
times on YouTube and the BBC is com-
ing under pressure to put aside its rules
on political impartiality and lift a ban on
playing the song on its radio stations
until after the election.
Jake Painter, writer of the song,
says that all the money from the down-
loads, which could amount to more
than 23,000, will go to the Peoples
Assembly Against Austerity, a campaign
group that helped to spread the song
online.
I think there is a huge swath of peo-
ple in this country who do not feel repre-
sented by the political culture, said Mr
Painter, who released another anti-Con-
servative protest song in April which
attracted just 7,000 YouTube views.
Millennials feel hopeless.
As Liar, Liar was moving up the
charts, a video produced by Jeremy Cor-
byns grassroots organisation Momen-
tum was also proving an online hit. In
just 24 hours, the film, which tells the
contrasting stories of a banker and a
nurse under the Conservatives, was
shared 2.2m times on Facebook.
With a week to go to polling day, all
the main political parties are stepping
up their social media advertising as they
Liar, Liar:
Captain Skas song
attacking Theresa
May is nearing
number one in the
download charts
mount a final push for support in mar-
ginal constituencies.
So far, the Conservatives biggest hit
on Facebook is a video that makes no
mention of Mrs May or any of their key
manifesto pledges. The film features a
series of interviews and speeches given
weapons, Nato and fighting terrorism.
The Tories say the clips show the Labour
leader is unfit to be prime minister.
By Wednesday afternoon, the video
had 4.7m views on Facebook and
940,000 views on YouTube.
Who Targets Me, a campaign group
calling for more transparency in digital
political advertising, says that since the
resumption of campaigning after last
weeks Manchester attack, the Conserv-
atives have stepped up their Facebook
campaign, tripling the number of page
impressions on the website.
More than a third of all political
advertising is coming from Mrs Mays
party, compared with about 10 per cent
in the opening two weeks.
But the success of shoestring produc-
tions such as Liar, Liar, whose creator
says it cost about 100 to produce, sug-
gests the effectiveness of online political
campaigning remains something of an
unknown quantity.
Political parties are always asking
how can we produce a viral video, said
Elizabeth Linder, a former political spe-
cialist for Facebook in Europe. But its
not something you can just create.
The question is whether internet pop-
ularity equates to votes at the ballot box,
particularly in areas that will determine
the outcome of next weeks election.
It could be that these videos are
reaching new audiences and encourage
young people to vote, said Matt Singh of
Number Cruncher Politics, who is ana-
lysing the election for the FT.
But its also possible that theyre
reaching a subset of youngsters that are
atypically interested in politics, or who
are disproportionately in safe seats, or
who may not vote anyway. Knowing
how many times a video has been
viewed on its own tells us little.
British students gear
up for election
Students at the
University of
Nottingham explain to
Mehreen Khan why
they care more about
some issues than any
generation in history
www.ft.com/video
4 FINANCIAL TIMES
France
Sleaze probe begins into Macron minister
Financial inquiry comes as
president seeks majority
in parliamentary elections
MICHAEL STOTHARD PARIS
A French public prosecutor has opened
an investigation into the financial deal-
ings of the head of Emmanuel Macrons
successful presidential campaign fol-
lowing allegations of sleaze.
The move risks damaging the new
governments image ahead of parlia-
mentary elections.
The prosecutor in the western city of
Brest yesterday said he decided to open
the inquiry after media reports about
the business dealings of Richard Fer-
Investors keep close eye on
rising Euroscepticism and
possibility of delayed budget
JAMES POLITI ROME
As Italys economic and financial top
brass gathered at the central bank for its
annual meeting this week, all the chat-
ter was about the prospect for early elec-
tions in the eurozones third-largest
economy. Its a disaster, said one
attendee. Im not sure what the point
is, complained another. Others were
not so concerned.
One thing was clear, however: Italys
day of political reckoning drew sud-
denly closer after Matteo Renzi, the
leader of the ruling centre-left Demo-
cratic party (PD), opened the door to
elections this autumn sooner than the
planned schedule and roughly at the
same time as Germany.
An early poll is not certain since it
depends on a final agreement with
opposition parties to reform the elec-
toral system. That will be followed by a
move to dissolve parliament, which
would have to be approved by Italian
president Sergio Mattarella, who is
sceptical about the plan.
Even so, anxiety is rising about an
uptick in political and financial instabil-
ity, driven by the strength of Euroscep-
tic parties such as the Five Star Move-
ment, led by comedian Beppe Grillo,
which is running neck and neck in the
polls with the PD in the latest surveys.
The jitters are compounded by the
fact that an early election would coin-
cide with the presentation of the coun-
trys budget which might have to be
delayed, raising eyebrows in Brussels
and a possible tapering of monetary eas-
ing by the European Central Bank.
Investors were happy to bask in the
glory of a positive outcome in the
French elections a bit longer. If Italy has
an early election, political risk in Europe
comes rushing back faster than
expected, said Megan Greene, chief
economist at Manulife, the asset man-
agement group, who is based in Boston.
Italy is considering adopting a Ger-
man-style proportional electoral sys-
tem, which would mean that Five Star is
unlikely to be able to form a govern-
ment, even if it comes first in the elec-
tion. The party is polling at 29 per cent
and has ruled out any alliances.
Trump vs the Valley
FRIDAY 31 MARCH 2017
Tech titans need to minimise
political risk GILLIAN TETT, PAGE 13
HMRC warns
customs risks
being swamped
by Brexit surge
3 Confidence in IT plans has collapsed
3 Fivefold rise in declarations expected
JAMES BLITZ WHITEHALL EDITOR
A computer system acquired to collect
duties and clear imports into the UK
may not be able to handle the huge
surge in workload expected once Britain
leaves the EU, customs authorities have
admitted to MPs.
HM Revenue & Customs told a parlia-
mentary inquiry that the new system
needed urgent action to be ready by
March 2019, when Brexit is due to be
completed, and the chair of the probe
said confidence it would be operational
in time has collapsed.
Setting up a digital customs system
has been at the heart of Whitehalls
Brexit planning because of the fivefold
increase in declarations expected at
British ports when the UK leaves the EU.
About 53 per cent of British imports
come from the EU, and do not require
checks because they arrive through the
single market and customs union. But
Theresa May announced in January that
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
The revelations about the system,
called Customs Declaration Service, are
likely to throw a sharper spotlight on
whether Whitehall can implement a
host of regulatory regimes in areas
ranging from customs and immigration
to agriculture and fisheries by the
time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
Shutdown risk as border
wall bid goes over the top
Congressional Republicans seeking to
avert a US government shutdown after
April 28 have resisted Donald Trumps
attempt to tack funds to pay for a wall
on the US-Mexico border on to
stopgap spending plans. They fear
that his planned $33bn increase in
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
to accept the proposals.
US budget Q&A and
Trump attack over health bill i PAGE 8
MAKE A SMART INVESTMENT
Subscribe In print and online
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Tel: 0800 298 4708
For the latest news go to
www.ft.com
THE FINANCIAL TIMES LTD 2017
No: 39,435
Printed in London, Liverpool, Glasgow, Dublin,
Frankfurt, Brussels, Milan, Madrid, New York,
Chicago, San Francisco, Washington DC, Orlando,
Tokyo, Hong Kong, Singapore, Seoul, Dubai
Subscribe to the Financial Times today
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With newspaper delivery, you start the day prepared.* With FT.com,
youre on top of the news throughout the day. And with mobile
and tablet access, youre up to speed wherever you are.
Talk of early election adds to Italian jitters
A Five Star plan?
Italys populists are trying to woo
the poor BIG READ, PAGE 11
adjust its negotiation position with the
EU, a Whitehall official said. If running
our own customs system is proving
much harder than we anticipated, that
ought to have an impact on how we
press for certain options in Brussels.
In a letter to Andrew Tyrie, chairman
of the Commons treasury select com-
mittee, HMRC said the timetable for
delivering CDS was challenging but
achievable. But, it added, CDS was a
complex programme that needed to be
linked to dozens of other computer sys-
tems to work properly. In November,
HMRC assigned a green traffic light to
CDS, indicating it would be delivered on
time. But last month, it wrote to the
committee saying the programme had
been relegated to amber/red, which
means there are major risks or issues
apparent in a number ofkey areas.
HMRC said last night: [CDS] is on
track to be delivered by January 2019,
and it will be able to support frictionless
international trade once the UK leaves
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.
HMRCs letters to the select commit-
tee, which will be published today, pro-
vide no explanation for the rating
change, but some MPs believe it was
caused by Mrs Mays unexpected deci-
sion to leave the EU customs union.
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
City watchdog sends a clear message as
banker loses job over WhatsApp boast
LAURA NOONAN DUBLIN
JENNIFER THOMPSON LONDON
A boastful WhatsApp message has cost
a London investment banker his job
and a 37,000 fine in the first case of
regulators cracking down on commu-
nications over Facebooks popular
chat app.
The fine by the Financial Conduct
Authority highlights the increasing
problem new media pose for companies
that need to monitor and archive their
staffs communication.
Several large investment banks have
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
encryption system that cannot be
accessed without permission from the
user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
STOCK MARKETS
Mar 30 prev %chg
S&P 500 2365.93 2361.13 0.20 $ per
Nasdaq Composite 5902.74 5897.55 0.09 $ per
Dow Jones Ind 20703.38 20659.32 0.21 per
FTSEurofirst 300 1500.72 1493.75 0.47 per $
Euro Stoxx 50 3481.67 3475.27 0.18 per 139.035 137.822 index 76.705 76.951 US Gov 30 yr
FTSE 100 7369.52 7373.72 -0.06 index 89.046 89.372 $ index 104.636 103.930 Ger Gov 2 yr
FTSE All-Share 4011.01 4011.80 -0.02 SFr per 1.069 1.072 SFr per 1.244 1.238
CAC 40
Xetra Dax
5089.64 5069.04 0.41 COMMODITIES
12256.43 12203.00 0.44
Nikkei 19063.22 19217.48 -0.80 Oil WTI $
Hang Seng 24301.09 24392.05 -0.37 Oil Brent $
297.73 0.09 Gold $
FTSE All World $ 297.99
WORLD BUSINESS NEWSPAPER
Lloyds of Brussels Insurance market
to tap new talent pool with EU base
Lloyds of London chose Brus-
sels over five or six other
cities in its decision to set up an
EU base to help deal with the
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance mar-
ket, said he expected other
Berrys after discussions with regulators.
Christopher Niehaus, a former Jeffer-
ies banker, passed confidential client
information to a personal acquaint-
ance and a friend using WhatsApp,
according to the FCA. The regulator said
Mr Niehaus had turned over his device
to his employer voluntarily.
The FCA said Mr Niehaus had shared
confidential information on the messag-
ing system on a number of occasions
last year to impress people.
Several banks have banned the use of
new media from work-issued devices,
but the situation has become trickier as
banks move towards a bring your own
device policy. Goldman Sachs has
clamped down on its staffs phone bills
as iPhone-loving staff spurn their work-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
World Markets
CURRENCIES
Mar 30 prev Mar 30
1.074 1.075 per $ 0.932
1.249 1.241 per $ 0.801
0.859 0.866 per 1.164 1.155 Ger Gov 10 yr
111.295 111.035 per 119.476 119.363 Jpn Gov 10 yr
Mar 30
prev %chg US 3m Bills
50.22 49.51 1.43 Euro Libor 3m
52.98 52.54
1248.80 1251.10
Visit FT.com/subscribenow
insurers to follow. Most of the
business written in Brussels
will be reinsured back to the
syndicates at its City of London
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
Londons specialist insurance
groups after the UK leaves the
media at work, but banks are unable to
ban people from installing apps on their
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set a precedent
in that it shows the FCA sees these mes-
saging apps as the same as everything
else.
Information shared by Mr Niehaus
included the identity and details of a
client and information about a rival of
Jefferies. In one instance the banker
boasted how he might be able to pay off
his mortgage if a deal was successful.
Mr Niehaus was suspended from Jef-
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Facebook did not respond to a request
for comment.
Additional reporting by Chloe Cornish
Lombard page 20
INTEREST RATES
prev price
0.930 US Gov 10 yr 98.87 2.38
0.806 UK Gov 10 yr 100.46 1.21
98.68 0.39
100.45 0.06
100.14 2.99
102.58 -0.75
price prev
Fed Funds Eff
0.66
0.78
-0.36
0.84 UK 3m 0.34
-0.18 Prices are latest for edition
Data provided by Morningstar
UK 2.70 Channel Islands 3.00; Republic of Ireland 3.00
Dear Don...
Mays first stab at the break-up
letter ROBERT SHRIMSLEY, PAGE 12
UK 3.80; Channel Islands 3.80; Republic of Ireland 3.80
THE END
Briefing
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border
OF THE
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
Atlantic. PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
ROAD
i Report outlines longer NHS waiting times
A report on how the health service can survive
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while
some surgical procedures will be scrapped. PAGE 4
i Emerging nations in record debt sales
Developing countries have sold record levels of
government debt in the first quarter of this year,
taking advantage of a surge in optimism toward
Credit Suisse
emerging markets as trade booms. PAGE 15
i London tower plans break records
A survey has revealed that a
record 455 tall buildings are
engulfed in
planned or under construction
in London. Work began on
almost one tower a week
during 2016. PAGE 4
fresh tax probe
i Tillerson fails to ease Turkey tensions
The US secretary of state has failed to reconcile
tensions after talks in Ankara with President Recep
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen. PAGE 9
i Toshiba investors doubt revival plan
3 UK, France and Netherlands swoop
In a stormy three-hour meeting, investors accused
managers ofhaving an entrenched secrecy culture
3 Blow for bid to clean up Swiss image
and cast doubt on a revival plan after Westinghouse
filed for Chapter 11 bankruptcy protection. PAGE 16
RALPH ATKINS ZURICH
DUNCAN ROBINSON BRUSSELS
i HSBC woos transgender customerscompliance but was still trying to
The bank has unveiled a range of gender-neutral
Credit
titles suchSuisse
as Mx,has been targeted
in addition
to Mr, Mrs,
Ms,sweeping
in a move tax
toinvestigations
embrace diversity in the
andUK,
France
needs and the Netherlands,
of transgender customers. setting
PAGE 20
back Switzerlands attempts to clean up dering by a global financial institution
its image as a tax haven.
The Swiss bank said yesterday it was tax authority added: The international
Datawatch
co-operating with authorities after its reach of this investigation sends a clear
offices in London, Paris and Amsterdam message that there is no hiding place for
wereattacks
Terror contacted by local
in western Europe officials
Recent attacks
concerning client tax matters. notably the 2011
Dutch authorities
Highlighted attack said their counter-
Others
massacre by
parts in Germany were also involved,
Anders Breivik
AFP while Australias revenue department Norway, theprobe; while French officials said their
EU, with Dublin and Luxem- said it was investigating a Brussels
Swiss bank.
attacks in Paris
The inquiries threaten to undermine and Nice, and
bourg thought to be more likely Norway Brussels suicide
efforts by the Paris countrys banking sector
homes for the industry. But Nice bombings
to overhaul business models and ensure
Mr Nelson said the city won on
customers meet internationalbucked
its transport links, talent pool of generally low
requirements following a US-led clamp-
and extremely good regula- fatalities from
down on evaders, which resulted in operation has been organised with the
tory reputation. Sources: Janes Terrorism and Insurgency Centre terror incidents in
billions of dollars in fines.
western Europe
Lex page 14 The probes risk sparking an interna- demanded a written explanation from
Insurers set to follow page 18 tional dispute after the Swiss attorney- Dutch authorities.
generals office expressed astonish-
ment that it had been left out of the in the US to an extensive and wide-
actions co-ordinated by Eurojust, the ranging conspiracy to help clients
EUs judicial liaison body.
Credit Suisse, whose shares fell 1.2 per
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
subject ofinvestigations in the Nether-
lands, France and the UK. The bank said in Paris
Living wage rise to pile
pressure on care services
About 2.3m people will benefit from
todays increase in the national living
wage to 7.50 per hour. But the rise
will pile pressure on English councils,
which will have to pay care workers a
lot more. Some 43 per cent of care
staff amounting to 341,000 people
aged 25 and over earn less than the
new living wage and the increase is
expected to cost councils care services
360m in the coming financial year.
Analysis i PAGE 4
yield chg
0.00
-0.03
-0.01
Subscribe In print and online
0.00
0.01
0.00
www.ft.com/subscribenow
chg
Tel: 0800 298 4708
0.66
0.78
0.00
0.00
For the latest news go to
-0.36 0.00
www.ft.com
0.34 0.00 THE FINANCIAL TIMES LTD 2017
No: 39,436
Printed in London, Liverpool, Glasgow, Dublin,
Frankfurt, Brussels, Milan, Madrid, New York,
Chicago, San Francisco, Washington DC, Orlando,
Tokyo, Hong Kong, Singapore, Seoul, Dubai
rand, the territorial planning minister
in Mr Macrons government. The probe
comes just 10 days ahead of Frances
parliamentary poll where Mr Macron is
hoping to ride the wave of his presiden-
tial victory last month and take his new
party, La Rpublique En Marche, to a
majority in the National Assembly.
It also follows a fraught presidential
contest in which two of the leading can-
didates were dogged by corruption alle-
gations. Mr Macron promised to restore
political morals and is preparing legis-
lation to crack down on politicians
employing relatives.
French satirical newspaper Le Canard
Enchan last week reported claims
relating to Mr Ferrands role as head of
the Mutuelles de Bretagne, a non-profit
Anti-EU:
Five Star leader
Beppe Grillo
gestures during a
march last
month. Right,
Matteo Renzi
Tommaso Crocchioni/Ansa/AP
GDP revision
Improved growth estimate
lifts currency bloc hopes
Italy has raised its growth estimate for
the first quarter of the year to 0.4 per
cent compared with the previous
quarter, boosting hopes of a sustained
eurozone recovery. The upward
revision in gross domestic product
reported by the national statistics
body from a previous figure of
0.2 per cent comes after April jobs
it followed a strategy offull client tax
gather information about the probes.
by Miss or
HM Revenue & Customs said it had
cater to launched
the a criminal investigation into
suspected tax evasion and money laun-
and certain ofits employees. The UK
those seeking to evade tax.
Dutch prosecutors, who initiated the
action, said they seized jewellery, paint-
ingsinand gold ingots as part of their
investigation had revealed several
the
thousand bank accounts opened in
Switzerland and not declared to French
taxhave
authorities.
tax the trend The Swiss attorney-generals office
said it was astonished at the way this
deliberate exclusion of Switzerland. It
In 2014, Credit Suisse pleaded guilty
evade tax. It agreed to fines of $2.6bn.
Additional reporting by Laura Noonan in
Houlder in London, and Michael Stothard
Brussels takes tough stance on Brexit
with Spain handed veto over Gibraltar
ALEX BARKER BRUSSELS
GEORGE PARKER LONDON
STEFAN WAGSTYL BERLIN clause, saying the territory had shame-
The EU yesterday took a tough opening
stance in Brexit negotiations, rejecting
Britains plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
European Council president Donald
Tusks first draft of the guidelines,
which are an important milestone on
the road to Brexit, sought to damp Brit-
ains expectations by setting out a
phased approach to the divorce proc-
ess that prioritises progress on with-
drawal terms.
The decision to add the clause giving
Spain the right to veto any EU-UK trade
deals covering Gibraltar could make the
300-year territorial dispute between
Madrid and London an obstacle to
STOCK MARKETS
Mar 31 prev %chg
S&P 500 2367.10 2368.06 -0.04 $ per
Nasdaq Composite 5918.69 5914.34 0.07 $ per
Dow Jones Ind 20689.64 20728.49 -0.19 per
FTSEurofirst 300 1503.03 1500.72 0.15 per $
Euro Stoxx 50 3495.59 3481.58 0.40 per 139.338 139.035 index 77.226 76.705 US Gov 30 yr
FTSE 100 7322.92 7369.52 -0.63 index 88.767 89.046 $ index 104.536 104.636 Ger Gov 2 yr
FTSE All-Share 3990.00 4011.01 -0.52 SFr per 1.071 1.069 SFr per 1.252 1.244
CAC 40 5122.51 5089.64 0.65 COMMODITIES
Xetra Dax 12312.87 12256.43 0.46
Nikkei 18909.26 19063.22 -0.81 Oil WTI $
Hang Seng 24111.59 24301.09 -0.78 Oil Brent $
FTSE All World $ 297.38 298.11 -0.24 Gold $
*Terms and conditions can be found at www.ft.com/subscribenow
HOW DRIVERLESS
TECHNOLOGY IS
CHANGING AN
AMERICAN WAY OF LIFE
FT WEEKEND MAGAZINE
Art of persuasion Mystery deepens
over disputed painting of Jane Austen
Austens descendants insist the Rice portrait depicts her as a girl see magazine
ambitious trade and airline access deals.
Gibraltar yesterday hit back at the
fully been singled out for unfavourable
treatment by the council at the behest of
Spain. Madrid defended the draft
clause, pointing out that it only reflected
the traditional Spanish position.
Senior EU diplomats noted that
Mr Tusks text left room for negotiators
to work with in coming months. Prime
minister Theresa Mays allies insisted
that the EU negotiating stance was
largely constructive, with one saying it
was within the parameters of what we
were expecting, perhaps more on the
upside.
390_Cover_PRESS.indd 1
British officials admitted that the EUs
insistence on a continuing role for the
European Court of Justice in any transi-
tion deal could be problematic.
Brussels sees little room for compro-
World Markets
CURRENCIES
Mar 31 prev Mar 31
1.070 1.074 per $ 0.935 0.932 US Gov 10 yr
1.251 1.249 per $ 0.800 0.801 UK Gov 10 yr
0.855 0.859 per 1.169 1.164 Ger Gov 10 yr
111.430 111.295 per 119.180 119.476 Jpn Gov 10 yr
Mar 31 prev %chg US 3m Bills
50.46 50.35
53.35 53.13
1244.85 1248.80
Friday 2 June 2017
INTERNATIONAL
Recovery
Finland loses
sick man of
health insurance fund in the Brittany
region, from 1998 to 2012. One was that
tion, there were grounds for further
investigation. The purpose of this
party has been climbing in the polls.
Mr Macrons inauguration ceremony,
Europe label
Mr Ferrands partner, Sandrine Doucen,
won contracts from the fund and also
inquiry is to collect all the information
necessary for a full analysis of the facts
meetings with Angela Merkel, the Ger-
man chancellor, in Berlin and his trip to
following
benefited from a real estate deal that
saw her renting commercial space to the
organisation while Mr Ferrand was in
and to determine whether or not these
are likely to constitute a criminal
offence, said a statement from Eric
meet French soldiers fighting jihadis in
Mali were all deemed a success.
Mr Macrons first steps on the interna-
growth surge
charge. Mathais, the public prosecutor. tional stage at a Nato summit in Brussels
Le Canard Enchan and Le Monde, a Edouard Philippe, prime minister, and a meeting of the G7 leading industr- RICHARD MILNE
NORDIC CORRESPONDENT
daily newspaper, also reported that Mr voiced his support for Mr Ferrand this ialised nations in Sicily last week also
Ferrands ex-wife, Franoise Coustal, week. Mr Ferrand denied any wrongdo- won plaudits. Finland has shaken off its tag of being
won contracts from the Mutuelles de ing on Wednesday and said he was not Polls this week showed that La Rpub- the sick man of Europe by recording
Bretagne while he was its head. going to resign. Everything I have done lique En Marche will attract about 30 six consecutive quarters of economic
Prosecutors last week said that they in my professional life is legal, public, per cent of the vote in the first round of growth for the first time since the glo-
were not opening a preliminary inquiry transparent, he told France Inter, a the election on June 11. bal financial crisis.
into the claims. radio station. This is a 10-point gain in a month,
But yesterday they released a state- Before the allegations surfaced, ana- putting the party within reach of win- Economic growth in the first quarter
ment saying that, following reports in lysts had said Mr Macron had had a near ning an absolute majority in the run-off was 1.2 per cent over the previous three
the press this week with new informa- flawless start to his presidency. His round on June 18. months the highest rate since the end
of 2010 and expanded 2.7 per cent
year on year, faster than economies
such as Germany and Sweden.
We are recovering but we are not
Eurozone. Instability fears fully recovered yet. Finland is certainly
not the sick man of Europe any more,
said Alex Stubb, the former finance
minister who used that description for
his country in 2015.
One of the most vocal advocates of
austerity in the EU, Finland had been
mired in recession for much of 2011-15,
hit by a cocktail of problems from the
decline of Nokia and the forestry indus-
try to sanctions on neighbouring Russia
and a rapidly ageing population.
But economists said the first-quarter
growth was driven by strong exports
that were aided by the weaker euro as
well as solid contributions from private
consumption and construction.
They cautioned that Finland remained
a rare EU country whose gross domestic
product was still lower than its peak
before the financial crisis. Pasi Sorjonen,
chief analyst at Nordea Markets, said his
bank had calculated that Finland needed
to record annual growth of 1.8 per cent in
each of 2016, 2017 and 2018 to reach the
previouspeak.
Further challenges remain. The
three-party coalition government has
aimed to cut Finlands labour costs
which have risen faster than any other
large EU country since the financial cri-
sis but still has to pass important
healthcare and municipal reforms.
Business people have privately
expressed concerns over the pace of
reform for much of the past decade.
There is no need to take the foot off
the accelerator. We have to continue
with these reforms, said Mr Stubb.
The coalition could be tested this
summer when a leadership vote in the
Eurosceptic True Finns could result in
But the PD may also fail to reach an months after, said one senior Italian cided with stronger-than-expected eco- the party taking a more hardline
agreement on a grand coalition with official. It is who will govern this coun- nomic data in Italy, with an upward revi- approach in government to staunch its
its most likely partner, the centre-right try and what they will do with it. sion in first-quarter gross domestic dramatic fall in opinion polls.
Forza Italia party led by former prime Early in the week, Italian equity and product and lower unemployment, Mr Sorjonen said that the government
minister Silvio Berlusconi. That means debt markets sold off partly on fears although it remains high. But early elec- should not be too self-congratulatory
a hung parliament is possible, which over early elections, but they have since tions have split the existing govern- because the economy had been boosted
could fail to form a government, leading stabilised. And some top economists ment, backed by the PD and led by by strong eurozone growth in countries
to a lengthy Spanish-style political and executives in Italy feel an early poll Prime Minister Paolo Gentiloni. such as Germany and by a weaker euro,
stand-off. The problem isnt whether has its advantages. Although Mr Gentiloni has not pur- which has helped manufacturing across
we vote four months before, or four Macron and Merkel will be sitting at sued any big new economic reforms, he the continent.
a table to redesign the rules of the euro- has been trying to implement existing I fear that with these nice numbers,
zone and Italy needs to be at the table, laws and is grappling with crises at two more and more politicians will find
figures showed unemployment said Francesco Giavazzi, a professor at regional banks in Veneto, as well as Ilva, themselves content and they will stop
dropping to 11.1 per cent from 11.5 per Bocconi University in Milan, referring the steelmaker, and Alitalia, the flag car- doing further reforms, he added.
cent the previous month. to the French president and the German rier. Some senior ministers, including Another issue could be in this
The latest data suggest Italy, which chancellor. If we havent had elections, Angelino Alfano, the foreign minister, autumns wage negotiations. Labour
has lagged behind the rest of the we cannot sit at the table and count. and Carlo Calenda, the economic devel- unions are eager for pay increases after
eurozone in recent years, could be Others say the financial pressure will opment minister, have already said they two years of freezes. The government
narrowing the gap, since year-on-year only build. It could be good for the disagree with early elections. Mr Alfano has tried to deflect those calls, saying
growth in the first quarter was 1.2 per country to reduce the period of uncer- is concerned because his centrist party workers should wait until the recovery
cent. But the details were less rosy. tainty. That way markets will have less might not make the 5 per cent threshold is more entrenched.
While the upward revision was driven time to short Italian assets, said for representation in parliament. But Mr Sorjonen said he was scared
by increases in stockbuilding and Lorenzo Bini Smaghi, the Italian econo- But Italian officials dismiss the notion about the wage talks. The unions forget
domestic consumption, investment mist and chairman of Socit Gnrale, that the early election talk will paralyse how far we lag behind [the rest of the
was still declining in the first quarter. the French bank. There are risks in Mr Gentilonis government. One senior eurozone]. They should remember this
James Politi and Claire Jones waiting for the natural deadline, too. official said: The air is thick but were is just a first step we need to continue
The talk of early elections has coin- working hard. at this pace for a long time.
Italian banks
Monte dei Paschi agrees to cut costs as part of Brussels rescue
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017
bank rescue rules for a lender to bolster ments, making them ineligible for a The MPS deal turns on it accepting
Censors and sensitivity
Warning: this article may be
upsetting LIFE & ARTS ALEX BARKER BRUSSELS
RACHEL SANDERSON MILAN
its capital buffers with limited state precautionary recapitalisation under broad conditions to shrink its network,
How To Spend It
funds if it is proven to be solvent and the EU rules without a private investor first cut costs and set itself on a path to profit-
Chic new lodgings
in Scotland
MAGAZINE Brussels and Italy have agreed on a
FEBRUARY 4 2017
burden for the rescue is shared with the covering the shortfall. ability. The final terms of the restructur-
rescue of Monte dei Paschi di Siena
private sector. Italy last week said it had given both ing plan which bankers say will
bank, outlining a draft plan that
The lure of the exotic
Robin Lane Fox on the flair
It comes just a day after Ignazio Visco, banks all the public guarantees neces- involve heavy job cuts will be settled
of foreign flora HOUSE & HOME
involves some investors taking a hit,
Bank of Italy governor, criticised Euro- sary to shore up their liquidity. Wran- with the European Commission in the
significant cost cuts and executives fac-
Escape the taper trap
pean banking authorities for decision- gling with the EU over a rescue is being coming weeks.
How high earners can evade
ing a cap on pay.
Bridgeman Art Library
a pension headache FT MONEY
making processes relatively incompati- blamed by some parties in Italy for the MPS will undergo deep restructuring
The announcement brings the long- ble with rapid intervention. banks struggles. The worsening out- to ensure its viability, including by
mise. If Britain wants to prolong its
status within the single market after
Brexit, the guidelines state it would
THE RISE
supervisory OF instru-
and enforcement
ments and structures to apply.
ECO-GLAM
require existing regulatory, budgetary,
Mr Tusk wants talks on future trade
to begin only once sufficient progress
running saga over the future of Italys Effective co-ordination is lacking, look for the banks, which Italy is trying cleaning its balance sheet from non-per-
has been made on Britains exit bill and
citizen rights, which Whitehall officials
believe means simultaneous talks are
possible if certain conditions are met.
Boris Johnson, the foreign secretary,
reassured European colleagues at a
Nato summit in Brussels that Mrs May
had not intended to threaten the EU
when she linked security co-operation
oldest bank towards a close, with Rome he said in an annual address to an audi- to avoid being bailed in, has raised ques- forming loans, Ms Vestager said.
19/01/2017 13:57
after Brexit with a trade deal.
Reports & analysis page 3
Jonathan Powell, Tim Harford &
Man in the News: David Davis page 11
Henry Mance page 12
signing off on an investor bail-in and the ence of Italys top bankers which, unu- tions about why the Bank of Italy and To ensure the EU limits the cost to
INTEREST RATES
prev price yield chg
98.63 2.41 -0.01
100.35 1.22 0.02
99.27 0.33 -0.01
100.36 0.07 0.00
kind of deep restructuring MPS fiercely sually, included Mario Draghi, Euro- stock market regulator Consob failed to taxpayers, MPS is expected to confirm it
99.27 3.04 0.01
102.57 -0.75 0.00
price prev chg
Fed Funds Eff 0.66 0.66 0.00
0.78 0.78 0.00
0.22 Euro Libor 3m -0.36 -0.36 0.00
0.41 UK 3m 0.34 0.34 0.00
-0.32 Prices are latest for edition Data provided by Morningstar
resisted for more than a year. pean Central Bank president. bring the problems to light earlier. has private sector buyers for a portfolio
Margrethe Vestager, EU competition The breakthrough follows close to 18 of bad loans, and that junior bondhold-
commissioner, and Pier Carlo Padoan, months of discussions between Rome ers and shareholders will contribute to
Italys finance minister, yesterday and Brussels over ways to bail out Italys the rescue.
announced they had agreed in princi- weakest banks. Although the sides have The commission said retail investors
ple on the steps to restructure the bank resolved differences over MPS, a deal who were not adequately informed
with an injection of state capital a use looks far less certain over Banca Popo- about the risks of their investment
of public funds for which EU approval is lare di Vicenza and Veneto Banca. could be eligible for compensation.
required. The two banks in the Veneto region Other conditions imposed by the
This solution is a positive step for- are struggling to recover from a surge in commission include a cap on senior staff
ward for MPS and the Italian banking bad loans following the European sover- pay equivalent to 10 times the average
sector, said Ms Vestager. It would allow eign debt crisis, which was compounded salary of an MPS employee. This would
Italy to inject capital into MPS as a pre- by a mis-selling scandal that has caused imply the total remuneration of Marco
caution, in line with EU rules, whilst lim- a flight of account holders, say people Morelli, MPS chief executive, would fall
itingtheburdenonItaliantaxpayers. familiar with the matter. Both have Rome has signed off on an investor from 1m-2m to less than 500,000.
The deal exploits the potential in EU fallen below minimum capital require- bail-in for Italys oldest bank Editorial Comment page 10
Friday 2 June 2017 FINANCIAL TIMES 5
6 FINANCIAL TIMES
Trump shakes Germanys faith in
US support for transatlantic alliance
Political elite astonished at what it sees as presidents rejection of shared values of western order
GUY CHAZAN BERLIN
DEMETRI SEVASTOPULO WASHINGTON
The news that President Donald Trump
has been preparing to ditch the Paris
accord on climate change has alarmed
the USs western European allies, as the
cracks in the transatlantic alliance have
widened.
But nowhere have the feelings been as
raw and the sense of betrayal as deep as
in Germany, the richest of those part-
ners. Many politicians, officials and ana-
lysts are aghast at what they see as Mr
Trumps rejection of the shared values
that underpin the western order. The
question that experts pose is how lasting
any damage on transatlantic ties will be.
This was a system that was designed
and constructed by the Americans after
the war, and now the Americans are dis-
mantling it, said Norbert Rttgen,
chairman of the Bundestag interna-
tional affairs committee. It has huge
symbolic potential.
Berlins issues with Mr Trump his
recent refusal to endorse Natos mutual
aid clause, his constant swipes at Ger-
manys trade surplus and Berlins sup-
posed underspending on defence
have been growing by the day.
The presidents likely rejection of
Paris is a blow to the collective solar
plexus. Fighting climate change is a con-
sensus issue that unites the countrys
political parties.
In terms of the repercussions for rela-
tions with Germany and Europe, Mr
Trumps decision to withdraw from the
Paris accord would be his most damag-
ing move so far, according to Nicholas
Burns, the former number three official
at the US state department.
The problem that Trump has created
is that, in addition to differences on
trade and Russia and climate, he is send-
ing a signal that he is ambivalent about
Nato and opposed to the EU and that he
Presidents legal pugilism faces heavyweight challenge
Tried and trusted tactics
from business world await
test in political arena
COURTNEY WEAVER AND DAVID J LYNCH
WASHINGTON
Donald Trump has insisted for months
that he is not under investigation by the
Federal Bureau of Investigation over his
alleged campaign links with Russia, cit-
ing two factors as proof. The first: that
he was assured so by former FBI direc-
tor James Comey; the second: a lack of
paperwork.
When youre under investigation
youre given all sorts of documents and
everything, the president explained
recently to NBCs Lester Holt. I knew I
wasnt under [investigation].
Of the two dozen US presidents who
did not practice law before taking office,
few have had as much experience with
the legal world as Mr Trump. The prop-
erty developer and reality television
star has long used legal manoeuvres in
his dealmaking and took part in more
than 3,500 lawsuits before taking office.
Mr Trumps legal acumen is set to be
sees Germany and the EU as strategic
competitors, added the former diplo-
mat, who advised Hillary Clintons pres-
idential campaign. That is an absolute
sea change in the US view on Europe.
German chancellor Angela Merkels
response to the mounting tensions with
Washington was a beer tent speech in
Munich on Sunday, which warned that
the times when Germany could com-
pletely rely on others were over. The
reverberations from that speech, which
seemed to question the future of the
western alliance, are still being felt on
both sides of the Atlantic.
Some commentators believe Ms Mer-
kel went too far. Yet US abandonment of
Paris would only vindicate her stance,
allies believe.
Germanys political establishment is
Cold comfort
Focus on coal threatens
more jobs than it saves
Although President Donald Trump has
presented his energy policy decisions
as focused on creating jobs, the solar
and wind industries that could be
threatened by leaving the Paris accord
employ more than the coal industry,
which is likely to be the principal
beneficiary.
About 374,000 spend some of their
time in the solar power industry, with
260,000 of those working there more
than half the time, a study by the
Department of Energy in the Obama
administration found. A further 102,000
work in wind power.
Together that is almost three times
the 160,000 employed in coal, with
about 86,000 at coal-fired power plants
and 74,000 in mining and distribution.
White House. FBI investigation
tested as special counsel Robert Mueller
investigates whether his presidential
campaign co-ordinated with Russian
officials during the 2016 election. While
others in Mr Trumps position might shy
away from confrontation, the president
has doubled down, attacking Mr Comey
since his dismissal and tweeting that the
former FBI director had given false and
misleading testimony to Congress.
Those who have followed Mr Trump
since his early days in the real estate and
casino industries see a familiar pattern.
What Trump is doing is not at all sur-
prising. Donalds life-long experience
has been success in compromising, or
running out the clock on, law enforce-
ment investigations. Hes very good at
it, says David Cay Johnston, author of
The Making of Donald Trump.
The presidents attacks on so-called not the presidents first brush with the
judges over his proposed travel ban
and his labelling of Mr Comey as a nut
job illustrate his standard tactic of
undermining the authority of anyone
trying to hold him to account, says Mr
Johnston, a Pulitzer Prize-winning jour-
nalist who has covered the president for
almost 30 years. That might have
worked when he was in private business
INTERNATIONAL
This was a now contemplating a new world order, United front:
one where the US is actively undermin- Donald Trump
system ing multilateralism. Such a prospect is attends the G7
designed particularly unnerving for a country summit in Italy
that has always seen itself through the last month
and prism of international, rules-based with, from left,
constructed institutions, from the EU and UN to Emmanuel
Nato, said Daniela Schwarzer, head of Macron, Donald
by the the German Council for Foreign Rela- Tusk, Jean-
Americans tions, a Berlin think-tank. Claude Juncker,
Fears are being voiced for the future Theresa May
after the of the Atlanticist tradition in German and Angela
war, and politics. First embraced by Konrad Ade- Merkel
nauer, the long-serving postwar chan- Luca Bruno/AP
they are cellor, who took Germany into Nato in
dismantling 1955 and helped to build the EU, the tra-
dition is a cornerstone of German for-
it eign policy. But the countrys politics
have also long included an anti-Ameri-
can strain, seen in massive demonstra-
The number employed in coal mining Clean Power Plan, the Obama
has dropped from about 89,000 at the administrations rules for curbing
start of 2012 to about 50,500 in April, carbon dioxide emissions from
following a slight bump of about 1,000 electricity generation, would have sent
over the past year. US coal production into renewed
Solar power is labour-intensive, in decline after about 2020. Scrapping
part because the rapid growth of the that plan, as Mr Trump intends, would
sector has created a lot of construction slow the growth of renewable energy
jobs installing systems. About 37 per and stabilise coal production at about
cent of US solar jobs are in 2015 levels, the EIA projected.
construction, with about 27 per cent in There is competition from abundant
sales. Only about 19 per cent of US reserves of low-cost gas released by
solar jobs are in manufacturing, and the the US shale boom, and US power
industry has been reliant on low-cost companies are continuing to shut coal-
imported panels, mostly from China, fired plants. Forecasters do not expect
Malaysia and South Korea, to enable it a strong rebound in coal output.
to compete against fossil fuels. A further difficulty for Mr Trumps
Although announcing an exit from hopes of reviving coal employment is
the Paris accord would have no direct that productivity is improving, and
impact on the US energy mix, Mr there is a shift in output from the high-
Trumps other policies will start to cost, less productive Appalachian mines
affect investment and employment. towards the lower-cost surface mines
The US Energy Information of the Powder River Basin in Wyoming
Administration has calculated that the and Montana. Ed Crooks
in New Jersey, he says. But hes now in that the president is no more litigious in
the biggest spotlight in the world. business than any other person working
On Wednesday, White House press in real estate or running such an expan-
secretary Sean Spicer said the adminis- sive conglomerate. One New York attor-
tration would no longer comment on ney said he declined an invitation to
the Russia probe, instead referring que- represent the Trump Organisation in
stions to Marc Kasowitz, Mr Trumps the 1990s. I knew from the word on the
street, from other lawyers, that he was a
difficult client, he recalled delicately.
Robert Mueller:
Ed Mermelstein, a New York real
investigating estate attorney who has known Mr
whether the Trumps personal attorney Michael
Trump campaign Cohen for decades, described Mr
co-ordinated with Trumps legal team as both creative
Russian officials
and extremely aggressive.
Its all negotiations. Its sort of like a
attorney. Meanwhile, Mr Comey is set to boxing match, he said.
testify before the Senate intelligence That philosophy has continued even
committee next week about his firing. after Mr Trumps transition to politics.
The FBIs Russia investigations are Last year, he celebrated the one-year
anniversary of his presidential cam-
bureau. In 1979, a federal grand jury paign launch by sitting for a taped depo-
investigated his acquisition of an option sition in a lawsuit he had filed against
to purchase Manhattans Penn Central Geoffrey Zakarian, one of the chefs who
rail yards. FBI agents interviewed had scrapped plans for a restaurant in
Trump twice, telling him the second Washingtons Trump hotel after the lat-
time that he was a target of the grand ters remarks about illegal immigrants.
jury, writes Mr Johnston in his Trump Yet the question remains as to
biography. No charges were filed. whether Trumps pugilistic style will
Mr Trumps lawyers have insisted work in the political sphere.
tions against Natos stationing of medi-
um-range nuclear missiles in the 1980s
and in then-chancellor Gerhard
Schrders stand-off with George W
Bush over the Iraq war in 2003. Such
tensions boiled up after Edward Snow-
dens leaks about mass surveillance by
US security services and claims that the
US tapped Ms Merkels personal phone.
Mr Trumps broadsides have intensi-
fied that anti-US tendency. During the
campaign he remarked that Ms Merkels
refugee policy had ruined Germany.
He subsequently claimed that the EU
was a vehicle for the Germans. Then
came reports that he had called the Ger-
mans very bad last week and vowed to
stop them selling millions of cars in the brink of complete disaster.
the US. Officials in Berlin worry that
Germany has come to symbolise every-
thing Mr Trump dislikes about the cur-
rent global dispensation, a foil for his
America First agenda.
Berlin has responded by welcoming
the arrival of Emmanuel Macron,
French president, and vowing to join
him in strengthening the EU. Ms
Schwarzer believes Ms Merkel will bol-
ster ties with other like-minded part-
ners such as Japan, Australia and Can-
ada. None of them can replace the US
though, she sad.
Karen Donfried, head of the German
Marshall Fund of the US, says Ms Mer-
kel still strongly believes in the transat-
lantic alliance. She would say Ger-
manys most important ally outside of
the EU is the US, she says. But there
may be a period where strategic
patience has to be exercised.
Officials in Berlin are considering sim-
ply trying to wait out the storm. Barbara
Hendricks, environment minister,
noted Mr Trump was limited by the US
constitution to serving only two terms.
The world climate will survive these
eight years without the US, she said.
Israel
US embassy to remain in Tel Aviv
DEMETRI SEVASTOPULO WASHINGTON
JOHN REED JERUSALEM
Donald Trump has decided not to
move the US embassy in Israel from Tel
Aviv to Jerusalem, marking a reversal
of one of the US presidents core cam-
paign pledges.
Mr Trump issued a waiver to a congres-
sional requirement to move the US
embassy to Jerusalem. Congress in 1995
mandated that the US diplomatic mis-
sion in Israel be moved to Jerusalem, but
Bill Clinton, George W Bush and Barack
Obama all signed repeated six-month
waivers postponing the move for
national security reasons.
During his election campaign, Mr
Trump vowed to move the embassy
despite concerns it would heighten tens-
ions between Israel and the Arab world.
Israel sees Jerusalem as its undivided
capital and claims sovereignty over the
city, but the global community views
East Jerusalem as occupied land where
the Palestinians want their capital. No
nations have embassies in Jerusalem.
No one should consider this step to
be a retreat from the presidents strong
support for Israel and for the US-Israel
alliance, a White House spokesman
Friday 2 June 2017
Humanitarian crisis
Thousands
more Yemenis
at risk from
cholera, warn
aid agencies
SIMEON KERR DUBAI
A cholera outbreak in war-torn Yemen
is putting tens of thousands of lives at
risk with the number of cases expected
to rise to 130,000 within weeks, the UN
has warned.
The disease has killed more than 500 in
the past month, its spread exacerbated
by a two-year conflict that has put the
Arab worlds poorest nation at risk of
famine.
The World Health Organization says
the number of suspected cases has risen
to 65,300. Rajat Madhok, spokesman
for Unicef, the childrens agency, in
Yemen, said: In the past three days
there has been an increase of 10,000
cases. It is alarming to note that in the
last two weeks an average of 1,100 chil-
dren are reporting to health facilities
with acute watery diarrhoea every day.
The outbreak has added to concerns
about deteriorating humanitarian con-
ditions in Yemen, where 10,000 people
have died in a conflict that has become
part of a regional power struggle that
pits Saudi Arabia against Iran.
Riyadh intervened in the war in 2015
in an effort to restore the Yemeni gov-
ernment ousted by Houthi rebels that
are allied to Iran. But the country
remains divided between rival forces,
and Saudi Arabia has drawn widespread
criticism over the high civilian death toll
from its bombing campaigns. Aid work-
The [cholera] outbreak
. . . comes against the
backdrop of a grave
humanitarian situation
ers are concerned the crisis could
worsen if the Saudi-led coalition carries
out its threat to attack the Red Sea port
of Hodeidah, a vital route for supplies.
Time is running out, Stephen
OBrien, UN undersecretary for human-
itarian affairs, told the Security Council
this week, calling on the international
community to bring all sides back from
The war and a failing economy have
pushed health and sanitation systems to
the brink of collapse, fuelling the spread
of cholera. Two in three Yemenis use
unsafe water. Families pay for water
trucked in from wells that have become
infected.
Many health workers, who have not
been paid for eight months, are not
reporting for work. Basic supplies such
as medical gloves and rehydration tab-
lets are in short supply. Rubbish is piling
up in public spaces.
Sherin Varkey, Unicefs deputy rep-
resentative in Yemen, said: All these
factors have contributed to the [chol-
era] outbreak, which comes against the
backdrop of a grave humanitarian situa-
tion, including some of the most acute
child malnutrition anywhere.
Agencies are distributing supplies to
treat cholera patients and disinfecting
wells and chlorinating drinking water.
Mr Madhok said: We are engaged in
an emergency response, but UN agen-
cies and partners cannot sustain this. As
well as an end to the conflict, what is
required is long-term investment in
water, sanitation and health.
said. President Trump made this deci-
sion to maximise the chances of success-
fully negotiating a deal between Israel
and the Palestinians.
He added: The question is not if that
move happens, but only when.
Benjamin Netanyahu, Israels leader,
said he was disappointed but said he
appreciated Mr Trumps commitment
to move the embassy in the future.
Israels consistent position is that the
American embassy, like the embassies
of all countries with whom we have dip-
lomatic relations, should be in Jerusa-
lem, our eternal capital, his office said.
Maintaining embassies outside the
capital drives peace further away by
helping keep alive the Palestinian fan-
tasy that the Jewish people and Jewish
state have no connection to Jerusalem.
Husam Zomlot, the Palestinian envoy
in Washington, welcomed the signing of
the waiver, and said his people were
serious and genuine about achieving a
just and lasting peace.
This is in line with the long-held US
policy and the international consensus,
and it gives peace a chance, he said.
Mr Trump had given no indication of
whether he would move the embassy
when he visited the region last week.
Friday 2 June 2017 FINANCIAL TIMES 7

INTERNATIONAL

Moscow Election claims

Kremlin aide urges oil industry privatisation Putin backs

Former finance minister
Kudrin asks president to
bring in foreign investors
KATHRIN HILLE AND HENRY FOY
ST PETERSBURG
A senior adviser to Russian president
Vladimir Putin has called for the full pri-
vatisation of the oil industry, upping the
ante in an heated debate over long-
delayed economic reforms.
The entire oil sector should be priva-
tised in the next seven to eight years. We
dont need state companies there, said
Alexei Kudrin, a former finance minis-
ter and the deputy head of Mr Putins
economic advisory council.
He said any privatisation should be
open to foreign investors, while saying
Intervention. Troop numbers
state ownership harmed Russias oil
companies more than it benefited them.
His proposal underlines the fierce
debate among Mr Putins advisers over
economic policy in the lead-up to next
years election, when the president is
expected to secure another term. And it
pits Mr Kudrin directly against Russias
powerful state resource company
heads, particularly Igor Sechin, chief
executive of Rosneft, the oil group.
The states share in the Russian oil
industry, as well as in the overall econ-
omy, has increased in the recent years.
This is our birthmark, that we
havent reduced the state economy and
in some cases even returned to it, Mr
Kudrin said.
In 2016, state-controlled companies
produced roughly 75 per cent of Russias
oil. Rosneft accounted for about 40 per
cent of production, including output
from assets acquired through the pur-
chase of Bashneft, a regional oil com-
pany that was renationalised in 2014.
Transneft, the oil pipeline monopoly, is
also owned by the state.
The entire sector should
be privatised in seven to
eight years. We dont need
state companies there
In a dig at Mr Sechin, Mr Kudrin said
Russia missed an opportunity for priva-
tisation with the Bashneft sale. Despite
interest from several suitors, the com-
pany ended up with Rosneft anyway,
he said. Mr Kudrins relationship with
Mr Putin goes back to 1993, when both
were deputies to the mayor of St
Petersburg.
Mr Sechin became Mr Putins chief of
staff a year later and has worked as the
presidents close aide ever since. Like
the president, the oil chief also has back-
ground in the security services.
The Kremlin was quick to say that Mr
Kudrins remarks had not been vetted.
As far as I know, the government
doesnt have such plans [for privatisa-
tion] so far, said Dmitry Peskov, Mr
Putins spokesman.
A cabinet official said it would be a
huge surprise if Mr Putin seriously
considered Mr Kudrins idea, as the
president believed state dominance of
oil was good for economic security.
Alexander Dyukov, chief executive of
Gazprom Neft, Russias third-largest oil
producer, rejected Mr Kudrins asser-
patriotic
tion that privatising oil and gas compa-
nies would be beneficial. He argued that
hackers
producers under state control had out-
performed private rivals.
fighting
I dont understand exactly what he
expects as a result of this [suggestion],
he said.
Russias critics
The private owner does not always
lead to more efficiency. KATHRIN HILLE ST PETERSBURG
Mr Dyukov added: When you look at
Vladimir Putin has conceded that
statistics, you can see how efficient we
are.
patriotically-minded Russian hackers
might target foreign electoral cam-
Gazprom Neft is a subsidiary of
paigns. It was the Russian presidents
Gazprom, the worlds largest gas pro-
latest nonchalant response to accusa-
ducer.
tions made by US and Europe that Mos-
Gazproms dominance in the gas mar-
cow had meddled in their elections.
ket is even larger than Rosnefts in oil, at
closer to two-thirds of Russian produc- Hackers are free people like artists,
tion. Privately owned producers, Mr Putin said at a meeting with heads of
including Novatek, account for about 20 foreign news agencies yesterday. If art-
per cent of the market. ists get up in the morning feeling good,
all they do all day is paint. The same
goes for hackers. They got up today and
read that something is going on interna-
tionally. If they are feeling patriotic,
they will start contributing, as they
believe, to the justified fight against

Rivals cloud those speaking ill of Russia.

Mr Putin was responding to a ques-
tion by the director-general of German

Trumps decision
news agency DPA whether he had any
advice for Germany and German gov-
ernment officials fearing that hackers,
possibly from Russia, could interfere

on Afghanistan with the parliamentary election in Sep-

tember. Is that possible? Mr Putin
responded. In theory, yes.
He restated his claim, made during

numbers to 8,400, the US finds itself

US generals seek to break
stalemate while Russia, Iran
and China jockey for influence
KATRINA MANSON WASHINGTON
KATHRIN HILLE MOSCOW
KIRAN STACEY NEW DELHI
The worst bomb attack on Afghanistans
capital since the 2001 US invasion has
provided a stark reminder of the diffi-
cult decision facing Donald Trump as he
weighs whether to boost troop numbers
in Americas longest-running war.
The suicide truck bomb, which on
Wednesday killed more than 90 and
wounded 450 in Kabuls diplomatic
quarter, highlights the hobbled state of
Afghanistans US-backed government,
which controls only 24 per cent of the
country, as it battles a resurgent Taliban
and a growing threat from Isis.
Mr Trump must balance his cam-
paign posture against unpopular inter-
ventionist wars that cost American lives
alongside fears that regional rivals Rus-
sia, Iran and China may outsmart the US
in an echo of how rival empires schemed
for control of the region in the 19th-cen-
tury Great Game.
Mr Trumps generals argue that send-
ing an additional 3,000-5,000 US troops
to help advise and train Afghan security
services would give the US a crucial fillip
in its battle against extremism and the
chance to overcome what General John
Nicholson, the top US commander in
Afghanistan, describes as stalemate.
But the US president has already once
delayed deciding whether to accede to
their counsel and a hotly anticipated
government-wide review of Afghani-
stan policy is still under way.
The Pentagon is taking advantage of
the change in presidents, said
Shashank Joshi, senior fellow at the
Royal United Services Institute. It
seems to be saying, President Obama
was too chicken. We think you might be
tough enough are you?
US troop numbers peaked above
100,000 in 2011, but since reducing
jockeying with Russia and Iran for influ-
ence.
While Soviet Russia fought the Tali-
ban during its own failed invasion in the
1980s, it now backs political reconcilia-
tion with the group, something the US
and Afghan government so far reject.
The Taliban are part of the Afghan
population. It is hard to imagine that
without them, the conflict can be
resolved somehow, Russian foreign
minister Sergei Lavrov said last month,
arguing that the longstanding US inter-
vention had only exacerbated terrorism
and augured the arrival of Isis.
The US counters that Afghans remain
overwhelmingly against the Taliban, a
violent group that wants to impose an
extreme version of sharia law, and says
it would consider enjoining them in any
political process only if they accept the
Afghan constitution and reject violence.
Previous efforts have foundered
because the Taliban demands with-
drawal of all foreign forces.
Moscow, which vehemently denies
arming Taliban militants, seized on this
weeks attack for which the Taliban
has denied responsibility to decry
what Mr Lavrov describes as double
standards and geopolitical games at
play in Afghanistan.
Nato cut co-operation with Moscow
on Afghanistan after Russias 2014
intervention in Ukraine and critics say
Russian support for the Taliban seeks to
undermine the US and Nato.
The US did not accept an invitation to
Russian-brokered talks in April, at
which diplomats from Iran, China, Paki-
stan, India and Afghanistan gathered in
Moscow to discuss the conflict.
[The Russians] are just trying to
throw a spanner in the works of what-
ever the US is doing there, said Thomas
Ruttig, a German former diplomat who
heads the Afghanistan Analysts Net-
work. It is the revenge for the revenge
for the revenge, he said of the lasting
bite of cold war-era rivalry.
The US worries both Russia and Iran
may be lending material support to the
Taliban. Gen Nicholson says the Rus-
Aftermath: sians are lending the Taliban overt
Afghans survey legitimacy and has not ruled out that
a damaged they may be arming the group. Beijing
building the denies reports it is conducting military
day after the patrols inside Afghanistan. For his part,
blast in Kabuls Mr Lavrov has appeared to imply the US
diplomatic might be arming Isis in Afghanistan.
quarter which While tentative US proposals fall short
killed more than of sending combat troops they would still
90 and wounded amount to a massive change in strat-
450 Hedayatullah egy, said Anthony Cordesman, Afghani-
Amid/EPA
stanexpertattheCenterforStrategicand
International Studies, saying the Afghan
It is hard to army is incapable of defending the
nation. But Mr Cordesman stressed that
imagine any peace effort would be stymied by a
that weakandcorruptgovernment.
Short of war, any political solution
without the will rely on co-operation with Pakistan,
Taliban, the Afghanistans neighbour and a shaky US
ally, which is regularly accused of clan-
conflict can destinely supporting Afghan Islamist
be resolved militants as it tries to balance its own
fears of Indian influence in the region.
Sergei Lavrov Additional reporting by Farhan Bokhari in
Islamabad
If artists get up in the
morning feeling good,
all they do is paint. The
same goes for hackers
the elections in France and in the US
before, that the Russian government
never had and never would interfere in
foreign elections through hacking.
Mr Putins comments play on the
uncertainty of who was responsible for
the hacks. While the US investigates
allegations that Russia interfered in last
years presidential election, the com-
plexity of proving beyond doubt who
was responsible for hacking attacks has
allowed competing narratives to spread.
The Russian president suggested
hacking attacks were being staged to
make it look like Moscow was behind
them to discredit Russia. His remarks
resemble the shifting narratives with
which he has batted away questions
over Moscows annexation of Crimea
and the involvement of Russian troops
in the conflict in eastern Ukraine.
When men wearing Russian military
uniforms armed with Russian military
weapons seized strategic points on the
Crimean peninsula in 2014, Mr Putin
claimed they were members of local
self-defence units dressed in Russian
uniforms. You can go to a store and buy
any kind of uniform, he said.
But a year later he exploded that nar-
rative by arguing in a domestic televi-
sion documentary that the Kremlin res-
cued Crimea from sectarian conflict by
sending in troops.
Crimean self-defence forces were of
course backed by Russian servicemen,
he said. They acted very appropriately
but . . . decisively and professionally.
Moscow has steadfastly denied that
fighters in eastern Ukraine, whom for-
eign journalists and independent
observers identified as Russian by their
accents or social media accounts, are
Russian soldiers. The Kremlin has said,
however, that it cannot exclude the pos-
sibility that patriotic Russians are fight-
ing against Kiev as volunteers.

Funding crackdown Vote warning

Activists say Egypt NGO law will stifle dissent ahead of poll
HEBA SALEH CAIRO
Human rights groups in Egypt have
accused President Abdel Fattah al-Sisi
of intensifying a crackdown on activ-
ists to quash dissent ahead of next
years presidential election.
A law regulating non-governmental
organisations, which critics have
described as draconian, was ratified by
Mr Sisi this week. The move followed a
crackdown on young secular activists,
with about 25 people arrested in the past
two weeks, mainly because of their
social media posts. At least two face
charges under antiterrorism laws.
The authorities also blocked about
two dozen websites, and state prosecu-
tors have launched legal proceedings
against a lawyer who hinted at plans to
contest 2018s presidential election.
Activists worry the escalation is
intended to close off space for dissent
ahead of next years vote. Mr Sisi, a
former military chief, is expected to
seek a second term.
This law is the final nail in the coffin
of civil society in Egypt, said Mohamed
Zaree, director of the Cairo Institute for
Human Rights Studies. He is one of 17
rights activists subject to travel bans
and asset freezes in connection with a
court case against groups accused of
receiving unauthorised foreign funding.
The ratification of the NGO law was
announced hours after the start of the
trial of Khaled Ali, the lawyer who har-
bours presidential ambitions. He led a
successful legal challenge to the govern-
ments decision to hand over two Red
Sea islands to Saudi Arabia under a bor-
der demarcation agreement.
Mr Ali faces charges in relation to
making an alleged obscene hand gesture
as he celebrated his victory outside the
courthouse. If convicted he will be una-
ble to run in the election.
These moves are in preparation for
the election, and maybe also to pre-
empt any reaction on the street if parlia-
ment still votes to hand over the islands
to Saudi Arabia, Mr Ali said, adding
that he had not decided if he would con-
test the presidency.
Under the NGO law organisations
must obtain official permission before
receiving any donation in excess of
$550, and again before spending it.
Amnesty International said the law
threatened to annihilate human
rights groups and was the latest ploy by
the Egyptian authorities to silence all
independent voices.
The foreign ministry defended the
law. Ahmed Abu Zeid, spokesman, said
there was no intention to restrict civil
Abdel Fattah
al-Sisi, a former
military chief, is
expected to seek
a second term
as president
society and the law includes provisions
that would support and empower it.
Mr Sisi, who came to power after lead-
ing a popularly backed coup against an
Islamist president in 2013, ratified the
law despite a storm of domestic and
international criticism when parlia-
ment approved it six months ago. Chari-
ties said the law would hobble their
work helping the poor. Even some
members of the cabinet opposed it.
The delay in its ratification had raised
hopes that Mr Sisi might ask the assem-
bly to amend it. However, some activists
suggest that Mr Sisi may have been
emboldened to move ahead with the
law after the warm embrace he received
from Donald Trump. The US president
has described his Egyptian counterpart
as a fantastic guy and an ally against
terrorism.
Mr Sisi visited the White House in
April and this month attended a summit
in Saudi Arabia, where Mr Trump called
on the Islamic world to unite against
Isis, but made no mention of democracy
or human rights.
However, the law has been criticised
by three Republican US senators,
including Marco Rubio, a former presi-
dential candidate.
Defenders of the law say it will help
ensure that funding reaches only legiti-
mate organisations.
An unnamed official was quoted as
saying the websites blocked last week
expressed support for terrorist groups.
However, among those affected are
Al-Borsa, a mainstream financial web-
site, and Mada Masr, an independent
news site that has a reputation for inves-
tigative reporting.
Cambodia premier fears civil war
MICHAEL PEEL BANGKOK
JAMIL ANDERLINI PHNOM PENH
Hun Sen, Cambodias prime minister
and Asias longest-ruling leader, has
warned his country could descend into
civil war after elections the opposition
claims it will win by a landslide.
Rights groups say the Phnom Penh gov-
ernment has stepped up intimidation
before Sundays communal polls, the
prime ministers first big ballot box test
since he came close to a surprise defeat
in national elections four years ago.
The latest menacing rhetoric of Hun
Sens autocratic 32-year premiership
underlines the uncertainty over the
future of an important Chinese ally in
Southeast Asia. Cambodia has recorded
high economic growth in recent years as
a centre of cheap-labour manufactur-
ing, but public discontent has grown
over land-grabbing and corruption.
Ou Virak, an analyst facing a legal
case accusing him of defaming Hun
Sens ruling Cambodia Peoples party,
said his country was really dependent
on the Chinese economy and things are
moving that way politically as well.
Hun Sen must worry about Chinese
influence but, whether it is a real threat
or just paranoia, he is far more worried
about being ousted in a colour revolu-
tion backed by the US, he said.
The premier has made the threat of
violence a campaign theme ahead of the
local elections on Sunday. He warned
last week that war will happen if the
CPP were to lose control and his family
were to be persecuted by the opposition.
Words can cause war if the CPP loses
patience and goes to your homes and
burns down your homes, said Hun Sen,
a former commander in the Khmer
Rouge, which committed genocide in
the late 1970s. The only solution is that
the CPP must win elections at all stages.
The opposition Cambodia National
Rescue party (CNRP) has condemned
the claims. It hopes to win 60 per cent of
the vote and 70 per cent of parliamen-
tary seats next year, after alleging it was
cheated of a win in 2013. The opposi-
tions strong showing was seen as a sign
of popular disenchantment with the rul-
ing party, after years of enrichment of
tycoons in what activist group Global
Witness has called a country for sale.
8 FINANCIAL TIMES
Bamboozled by a Plasticine courgette
FILM
Nigel
Andrews
N
othing is deadlier for a film
reviewer than to find
himself in charms way.
How to stay on critical
guard when strafed by
sweetly appealing characters, funny
dialogue, gorgeous colours that dan-
gerous war zone where winsome and
winning become one and the victory,
as often as not, is of beguiling tosh over
bamboozled viewer.
My Life as a Courgette, a Swiss/
French Plasticine animation feature
directed by Claude Barras, so brims
with charm that it rings every alarm
bell. But Ive taken proper measures:
seen the film twice, wore the armour of
sceptical caution the second time. I still
think, as I did in the coercive crowd-
rapture of Cannes last year, that its a
little masterpiece.
Nine-year-old Icare, nicknamed
Courgette, innocently causes the death
of his drunken, nagging mum, slam-
ming an attic trapdoor on her head. He
is sent to an orphanage. Not a strict or
severe one; just a representative child-
hood gaggle of waifs, bullies, tots and
airheads. Sex education is provided by
dormitory natter (You wiggle on top of
someone and your willy explodes).
Crushes and hates get out of control.
And if youre called Courgette, naturally
your mocking peers dub you Potato
ever after.
French writer-director Cline
Sciamma, of Girlhood and Tomboy, wrote
the script and its perfect. (The untrans-
lated source novel is by Gilles Paris.) She
understands the tumults of pre-
puberty, when innocence wars with
errant precocity or remembered pain.
Camille, the new girl with her own
damaged past, reads Kafka. Simon, the
resident bully, treats Courgette with
manipulative alternations of petty
cruelty and sudden friendliness.
Amid the Toytown sets, the large-
ARTS
Bursting with vitality: the Swiss/French animation My Life as a Courgette
My Life as a Courgette headed Plasticine figures burst with
(PG) vitality and expression. Courgette is a
Claude Barras blue-haired moon-face with a carrot-
AAAAA coloured nose, a tiny mouth and eyes
the size of whirring planets. Most of
The Red Turtle (PG) the films eyes are huge: oversized recep-
Michal Dudok de Wit tors for an over-large world. Human
AAEEE existence is an anarchic abundance:
growing up, the discovery of love, the
Wonder Woman (12A) need to deal with hate, the trauma of
Patty Jenkins bereavement . . . Too much to learn,
AAAEE too little time.
Yet few things stalk lifes complexity
After the Storm (PG) more skilfully than childlike animation.
Hirokazu Koreeda It can go right up to the monster,
AAAAE unperceived or unsuspected, and stare
at its threatening enormity with its own
bold, impudent, innocent insights.
The Red Turtle, raved over by some,
seems a poor, plain thing beside Cour-
gette. Made for Japans Studio Ghibli
(home of Miyazaki) by Dutch animator
Michal Dudok de Wit, it starts with a
shipwrecking storm at sea poetic yet
realistic, Hokusai by way of Hook of
Holland and then fizzles into an
underpowered survival fable. Survival
of man: the castaway hero flung on an
island to scrape an existence or shape an
escape. Survival of nature: the push-
back of beast asserting native habitat
against invading man.
Is the big red turtle who keeps capsiz-
ing the heros getaway raft defending
her turf or flirting with the foe? When a
beautiful woman turns up, who seems
as native as the turtle (Im dancing
around plot spoilers), is she a friend or
enemy? Is this a parable about the ideal
pact between a planet and its people?
Do we care?
Not this viewer. The images are
tamely drawn; the tale is wanly evolved.
An animated world that should burst
with strange life is muddy-coloured
almost monochrome without the tur-
tles red splashes while the characters
are choreographed stick figures. Only at
sea does the filmmaker find his mojo
and this desert island fable its drama.
It was often said (at least by me) that
Olivier could blaze and Gielgud could
glow, but only Sir Ralph Richardson
could do both. Stupendous, underrated
Ralph. Well, now it seems David Thewlis
can do both. Hes the only reason to
sit through Wonder Woman, but what
a reason. He blazes and glows as the
show-stealer ex machina at the climax of
this torpid, overlong DC Comics epic,
which puts the first world war on a bak-
ing tray for the latest cook-till-crisp
superhero flick.
Thewlis has just stolen the first
A midsummer nights song-and-dance
T H E AT R E
On the Town
Open Air Theatre, Regents Park, London
aaaae
Ian Shuttleworth
For many years the keynote of the sum-
mer season at the Open Air Theatre in
Regents park was A Midsummer Nights
Dream, but that changed when Timothy
Sheader took the helm. Sheader is a
musicals man who sees no reason why
song-and-dance shows shouldnt be
performed under London summer
skies. In the past decade or so he has
pretty much proved his case, and begins
this season by commissioning Drew
McOnie to direct and choreograph
Leonard Bernsteins 1944 break-
through, On the Town.
This tale of three naval ratings on 24
hours shore leave in New York City was
written and set during the second world
war, but McOnie removes any hint of
the conflict. He stages it as a fantasia,
with his company dressed largely in
bright, solid colours and dance
sequences that are grounded in the
sense of American ballet that moti-
vated Jerome Robbins original concept
but also include more modern gestural
idioms. (Indeed, at one point he
includes a gay pas de deux which would
have been inconceivable in the 1940s.)
episode of TVs new Fargo series from
Ewan McGregor. The only contest he
gets here is from another Trainspotting
cub, Ewen Bremner. Bremner is the
goodies standout. A mad, spooked,
bristling Scot, he joins Diana the Won-
der Woman (Gal Gadot) fresh off the
god-strewn island that looks like a Pho-
toshopped Positano with Chris Pine
and others to defeat Aries, god of war,
disguised (its thought) as Danny Hus-
tons evil, fulminous German general.
We are dragged like reluctant war-
horses through the European mud
and mire. The film is awash with noir,
which may be why some critics have
liked it. That and some early visual bra-
vura, including a flashbacked-history
montage presented as voluptuous
Titianesque tableaux, rustled by
ghostly movement.
The dialogue is less voluptuous.
Maybe people arent always good . . .
Pine jabbers as the western-front
inferno swells. Theres a lot of rhubar-
bing and a lot of bang-bang. Gadot does
It pays off beautifully: McOnies exu-
berant work here is irresistible. He
keeps matters constantly fluid on Peter
McKintoshs set of impressionist wharf-
side freight containers from which a
host of other locations are trucked on
and off. The central trio are engaging,
but particular mention must be made
of Jacob Maynard, who took over as
the innocent Chip with mere days
notice. (As naive as Maynards Chip is,
so is Lizzy Connolly determinedly libid-
inous as his date, Hildy.) Danny Macs
Gabey and Siena Kellys Ivy are not the
most magnetic of central couples, but
Friday 2 June 2017
her best to put quirks and character into
the Amazonian heroine, alternately
stand-and-deliver and swoop-and-
smite. The enemy seems to have been
told not to shoot till they see the whites
of her thighs. But by then its too late.
Finally, however, comes Thewlis.
(I cant say whom he plays; its a spoiler.)
And suddenly were back, or I am,
watching Sir Ralph do John Gabriel Bork-
man on stage at the National. Blaze;
glow; snarl; roar; purr; throb. All the
notes of eternity are suddenly sounding,
rendered more startling at least
here by the tin-eared terrestrialism
all around.
You can never be objective watching
a movie. Take just one example.
A lead actor who startlingly resembles
another actor can skew your gaze and
mind. In After the Storm, the new
film from Japans Hirokazu Koreeda
(Like Father, Like Son), star Hiroshi
Abe looks so like Gregory Peck from
the handsome-craggy aquiline face to
the tall, shambleshanks stature
that you feel youre watching Atticus
Finch of To Kill a Mockingbird, gone Ori-
ental. Hiroshi even duplicates unwit-
tingly Pecks aw-shucks, lanky-limbed
body language.
Result? The Peckishness helps per-
suade you to the heros side, even
though this once-prizewinning novelist
now turned downscale private detec-
tive, who uses gambling and petty extor-
tion to pay child-support bills, is at best
a flawed anti-hero, at worst a full-on
creep. He squanders his gifts on a squan-
dered (by him) love. He wants his boy
and divorced wife back; probably too
late. And when the ex-family gathers
fortuitously at his mums flat one night
a capricious biddy cast as Prospero in
this magic-isle apartment a tempest,
no less, occurs.
Will the alchemy of the elements
change everything? Or anything?
Thats the movies magic. After closing
in, the story then widens out again and
youre left Shakespeareanly, teasingly,
richly flummoxed. Can the past ever
be changed, at least as an imprint on
the present?
Its a clever, mazy film. And for movie-
manes there is even a footnote to the
Peck echo. Peck himself once appeared
in a screen version of The Tempest, a
1948 allegorical western called Yellow
Sky. He played a rare (for Peck) neer-
do-well, a felonious scapegrace pursu-
ing a fugitive destiny, exactly like the
hero of After the Storm. Coincidence?
Kismet? Or the holistic gods of cinema
uniting again around their favourite
creed of everything connects?
Swoop and
smite: Gal
Gadot in
Wonder
Woman
Bernsteins eclectic score and McOnies
choreography overcome this minor
weakness in Betty Comden and Adolph
Greens book.
Towards the end I noticed that the
fantasy had, as it were, overflowed the
stage: Howard Hudsons lighting
includes some discreet beams on the
trees behind the stage, as if to remind us
that the experience does not simply
consist of the show, but of the location in
which its presented. It all makes for a
smart, brash, infectious production.
To July 1, openairtheatre.com
Infectious:
Siena Kelly
and Danny
Mac in On
the Town
Jane Hobson
Friday 2 June 2017
Once dubbed the worlds favourite airline, earnings have been rising at BA but a cost-cutting programme left air
travellers and staff asking if it could do more to protect its brand even before the Heathrow IT debacle.
P
eter Lawson has flown the
equivalent of one-and-a-half
times to the moon and back
with British Airways. But
after clocking up 750,000
miles, mostly in the airlines premium
cabins, he has had enough. Even before
last weekends chaos that left 75,000
passengers stranded at Heathrow air-
port after an IT failure the 65-year-old
executive believed the carrier had been
seriously damaged by management
cost-cutting.
Theyve cut too far, he says. Ive
been an incredibly loyal customer over
the years . . . but it has got progressively
worse. For Mr Lawson, this was
brought to a head in March after travel-
ling with BA from Cape Town to Geneva
via London. Each of his four flights had
problems.
After he complained, it took the air-
lines customer services department
more than five weeks to respond. Im
absolutely shocked at how theyve han-
dled it, he says. Although he has a
number of flights booked with BA over
the next 12 months, Mr Lawson says he
will start using other carriers.
For many, inside and outside the com-
pany, the Heathrow incident crystal-
lised how far consumers have fallen out
of love with an airline that once styled
itself the worlds favourite. Those feel-
ings were compounded by delays in
properly apologising for the cancella-
tion of flights and the absence of senior
managers, who opted not to face cus-
tomers after a power outage severely
affected its operations on Saturday.
It was hideous. I was with colleagues
who have worked for 30 years in the air-
line industry and theyve never seen
anything like it, says one BA cabin crew
member. All these people going on
their holidays were just left stranded.
The meltdown provoked a row over
cost-cutting, with unions blaming BAs
decision last year to outsource 700 IT
jobs to India. Speaking to the FT, Willie
Walsh, the combative chief executive of
British Airways parent company Inter-
national Airlines Group, rejected this,
instead blaming the incident on a power
cut that was followed by an uncon-
trolled restoration of power that
caused physical damage to the airlines
servers.
The reality is the problem was cre-
ated by the loss of electrical power, says
Mr Walsh. Not by any decision in rela-
tion to how the IT systems are managed
or operated.
Mr Walsh, or Slasher Walsh as he
became known during his time as chief
executive at Irish airline Aer Lingus, has
made a name for himself by turning
round ailing airlines. The former pilot
who rose to become chief executive of
BA and subsequently IAG has been great
for investors shares are up more than
120 per cent over the past four years.
Under his leadership, IAG has gone from
operating profits of 503m in 2011 to
2.5bn in 2016. Earnings at BA, IAGs
largest airline, have risen from 518m to
1.47bn over the same period. Passen-
ger numbers are also up.
Yet critics say his penny-pinching
ways, such as cutting frills from the air-
lines onboard service and clashing with
FT BIG READ. BRITISH AIRWAYS
By Tanya Powley
A Boeing 787-8 crew over pay, could result in long term
Dreamliner on damage to the brand and its reputation
the move at with customers, even before this weeks
Heathrow chaos.
Nick Morrish/BA
As financial analysts, we love BAs
product. It has the densest number of
seats per square foot that you can get,
says Andrew Lobbenberg, aviation ana-
lyst at HSBC. But the flip side of that is a
less nice product as a consumer. The
magic of management is to balance the
interests of customers and shareholders
and employees, and its a subtle task.
Whether theyve got the balance right is of BA are uncompetitive. I think that
a valid question.
Less room than Ryanair
The glory days of the 1980s when BA
savoured its slogan as the worlds
favourite airline have long gone. The
nations flag carrier, still Britains pre-
mium airline, has instead recently
attracted new, less flattering monikers
Budget Airways and British Bareways beauty of ancillary revenue and thats
are among them. It has also been criti-
A lot of us cised for slashing the full-service frills
that its reputation was built on.
feel the Since January, economy travellers
airline have had to pay for food and drink on
short-haul flights across Europe. Leg-
is going room has also been squeezed with BA
through a offering an inch less than budget rival
Ryanair in economy on some planes.
painful British Airways was pre-eminent in
demise and the 1980s and early 1990s. But the avia-
customers tion landscape has changed dramati-
cally since then, says Chris Tarry, a
are noticing London-based aviation consultant and
former city analyst.
A BA customer
Former state-controlled flag carriers
services
such as BA and its European rivals
director Lufthansa and Air France have been
under pressure from all sides. Some like
Alitalia have gone into administration,
It is going to while others including Air Berlin are
struggling to turn a profit. The rise of
be difficult. low-cost airlines over the past two dec-
There are ades has seen Ryanair and easyJet tear
chunks out of the European short-haul
lots of angry market, taking as much as 40 per cent of
customers the business over the past 15 years.
Not content with conquering that
out there. market, no-frills carriers such as Nor-
We will have wegian Air Shuttle, are closing in on the
to work hard lucrative transatlantic market that for
decades has been dominated by the
to . . . satisfy large European flag carriers and the big
them three US airlines, Delta, United Airlines
and American Airlines.
Willie Walsh, At the same time, BA, which popular-
IAG chief ised the fully reclining business-class
executive seat in the mid-1990s, is viewed as offer-
IAG
Share price (pence)
600
550
500
450
400
350
2015 16 17
Sources: Thomson Reuters Eikon; company
FINANCIAL TIMES
ing a shabbier experience to its first
class and business travellers. The rapid
growth of the cash-rich Gulf airlines
have stolen the mantle for luxury inno-
vation with apartments, showers and
bars on their planes. US carriers, once a
laughing stock when it came to pre-
mium offerings, have also been pouring
money into their business-class
products.
The front of the plane service mat-
ters and BA has fallen behind, says Mr
Lobbenberg. The business-class seats
has to tread carefully.
challenges the brand proposition.
BA has been busy trying to adapt. Like
other full-service carriers, it has
adopted many of the tactics used by
low-cost airlines in the past five years,
such as offering basic fares with no hold
luggage and charging to reserve seats.
I think the trend is clear, the full-
service airlines have woken up to the
not going to go away, says John Bailey, a
44.5m 1.47bn
BApassenger BAearnings
numbersin2016,
upfrom37.6min
in2016,up
from518m
2012 in2011
specialist in aviation crisis communica-
tions. They have to adapt or die, and
weve seen other airlines that have died
because they didnt change.
Consumer care
Mr Walsh is widely admired for how he
runs IAG, with analysts noting that it is
one of the most shareholder-focused
groups in the aviation industry. But
some question whether the focus on cost
means brand investment has been left
behind. He hasnt shown particularly
an understanding on brand position-
ing, says one aviation insider.
The appointment last year of Alex
Cruz, a former chief executive at low-
cost airline Vueling, to head BA raised
eyebrows, despite his insistence that he
was not appointed to Ryanair-ise the
carrier. He has effectively split BA in
two: a budget airline focused on price
that can compete with its no-frills rivals
and a luxury one aimed at the lucrative
business traveller market.
When we look at economy, we are
looking at a commodity product, with-
out a doubt, Mr Cruz told investors in
November.
BAs sales and earnings
Passenger Operating profit
revenues before exceptional
(bn) items (bn)
10 1.5
8
1.0
6 of its Gulf and US-based rivals.
4 can fit in more passengers than
0.5
2 seat. Thats why they probably
0 0
2011 12 13 14 15 16
9
Flagging
carrier?
Many analysts say this is a sound
strategy and necessary to BAs sur- Cutting
vival. John Strickland, an aviation con- costs
sultant, notes that it is similar to the way
supermarkets offer different price 2013
brands. February BA trials
They have the premium finest budget fares, Squeezed at both ends BA has
ranges through to the value ranges. We offering cheaper adapted to competition from low-cost
dont say, oh that supermarket is going tickets that come airlines as well as the Gulf flag carriers
downhill because they are offering a with no hold
value range. If we dont want it we can luggage. A month Continuous overhaul IAG chief Willie
still buy the finest, says Mr Strickland. later it extends it Walsh insists that the airline has to
But branding experts warn that BA to 32 routes change to remain relevant
2015
The risk from a brand perspective is March BA adds fees Higher premium A 400m investment
when you introduce service innovations on to its cheap in Club World catering, seats and other
like flat beds, business class, free drinks, areas will not be ready until 2019
tickets. Passengers
free meals, all the perks the service car- who buy hand
riers have added over the years, custom- luggage-only fares
ers get used to them. Especially in busi- now have to pay to Others suggest the airline is protected
ness class, they get used to it and they choose a seat by its strong position at Heathrow,
resent it if you start taking it away, says where it has a market share of 56 per
Mr Bailey. 2016 cent, and its popular frequent flyer pro-
April The airline
While the airline has been trimming makes further
gramme. BA offers nonstop flights to
frills for years in economy, cuts are changes to its ticket London from more destinations and at
s t re t c h i n g t o i t s p re m i u m pricing structure to higher frequencies than any other air-
cabins where business travellers are see- line. Combined with the frequent flyer
ing luxury touches removed and food
compete with
low-cost carriers. It programme and Avios points, this
choices cut. offers Basic, Flex means they have a strong grip on most
But Mr Walsh has brushed off ques- and Flex Plus of the [London] market, says one City
tions of wider damage being done to the August BA halves analyst.
brand through cost-cutting changes. business class-only
flights from London
In April, BA revealed plans for a
Change is a feature of our industry. The 400m investment into Club World,
reality of it is the business has to change
City airport to New
with a focus on improved catering as
to remain relevant, not just to our exist-
York to just one per
day well as a new business-class seat. How-
ing customer base but to be relevant to a September BA ever, critics point out that the seat of
wider and new customer base. confirms that from which there are no details yet will not
One BA cabin services director, who January it will no be ready until 2019 and will initially be
asked to remain anonymous, says the longer offer free available only on its A350 and 787-10
airlines mantra has gone from being the food or drink on its aircraft, representing a small share of
customer is king to cash is king in short-haul the fleet.
the 20-odd years he has worked there. European flights Another cabin crew member says she
A lot of us feel like the airline is going is concerned that BA thinks its strong
through a gradual, painful demise and
2017 market share means it can get away with
March The airline
customers are noticing it. confirms that reducing quality. They said well take
We internally refer to ourselves as off the free food for economy and invest
Cabin Sorry Directors because most of
legroom will shrink
in economy on that money into Club, but I cant see that
the time we are apologising for the state certain flights as it they have done that. In Club Europe, the
of the interiors or things that have gone squeezes two more product you are now getting is not an
wrong. Its embarrassing, he adds. rows of seats on to enhanced product, it is actually a
An era of enraged customers
its Airbus aircraft reduced one, she says.
May It is remarkable how aware the fre-
Shashank Nigam, chief executive of A global IT outage quent traveller is of every change that is
SimpliFlying and author of SOAR, a
grounds BA flights
over the May bank
made, says one former director of BA.
book on airline branding, says carriers holiday weekend They are probably more aware of the
should remember that it is the age of product than most of the people in the
the enraged customer. airline whose job it is to manage the
I believe it is important that manage- delivery.
ment set the right brand expectations Up until last weekend, passenger dis-
and then over deliver on them. For satisfaction did not appear to have
example, if BA expects me to pay for a IAG chief dented demand at BA. The airline con-
sandwich on a flight, then it better be executive Willie tinues to see its passenger numbers
the best sandwich ever served on a Walsh, left, and grow, rising from 37.6m in 2012 to
flight, he says. Alex Cruz of BA 44.5m in 2016. But with customer and
While BAs Club World business employee satisfaction scores, based
seats were innovative when on Skytrax and Glassdoor surveys,
launched more than 15 years already among the lowest in the
ago, they have not been signifi- industry, analysts say BA will
cantly changed since, which has need to work hard to repair the
left them with a more dated prod- damage caused by the IT chaos.
uct in the premium cabin than most Mr Walsh admits to
being clearly con-
It is a very clever design. They cerned that the inci-
dent has damaged the
other fully flat business-class brand, adding: Its
going to be diffi-
havent felt any cult . . . there are lots
pre ssure to of angry customers
change it, says out there. We will have
Tom Otley of Busi- to work hard to make
ness Traveller magazine. sure we satisfy them.
10
FRIDAY 2 JUNE 2017
Chinas cyber security
law and its chilling effects
It aims to tighten censorship but will end up curbing competition
China consistently ranks as the worlds
worst abuser of internet freedom. A
law on cyber security, which took
effect yesterday, is no doubt intended
to tighten Beijings grip on the speech
and thought of its citizens. As if this
were not bad enough, the law will also
serve as a barrier to global companies
operating in China and impede Chinese
companies ability to compete on the
global stage.
The law explicitly criminalises any
online information that the ruling
Communist party regards as damaging
national honour, disturbing eco-
nomic or social order or contributing
to the overthrow of the socialist sys-
tem. It is ostensibly aimed at protect-
ing the privacy of Chinas 730m inter-
net users. In reality it will enshrine the
states right to snoop on anyone who
logs on to the internet and will force all
companies operating in the country to
be complicit in this.
Thanks to the great firewall of
China government censorship appa-
ratus, Chinas online world is effec-
tively one big intranet. The law,
couched in language that is both excep-
tionally vague and incredibly broad in
scope, could be used to prosecute
almost anyone who posts information
that contradicts the Communist partys
official narrative. It could even be used
to target companies that store such
information on private servers.
While Beijings primary goal is cer-
tainly tighter control over its own peo-
ple, the law also acts as a non-tariff bar-
rier for a range of global companies
operating inside China. By requiring
that companies store all data collected
in China on servers based in the coun-
try, the government is heavily favour-
ing domestic competitors. Given the
widespread, and in many cases state-
sponsored, abuse of intellectual prop-
erty rights that persists in China, a sep-
arate requirement that companies
MPS rescue will not end
the woes of Italys banks
Successive governments have failed to confront the sectors problems
The rescue of Monte dei Paschi di Siena
has been a long time coming. The prob-
lems at Italys oldest bank, discernible
as early as 2009, were rapidly com-
pounded by the surge in loans that
went bad during the eurozones sover-
eign debt crisis. Yet it has taken the best
part of a decade for bank management
and the Italian government to admit
their extent and countenance the pain-
ful reforms that will be needed to put
the bank back on a stable footing.
The MPS saga is symptomatic of the
problems that have plagued Italys
banking sector. Added to worries over
stagnant growth and febrile politics, it
is little wonder investors have come to
view Italy as the weakest link in the
eurozones recovery and the biggest
risk to the blocs financial stability.
The agreement between Rome and
Brussels on the key elements of a res-
cue therefore comes as a considerable
relief. Italy will be able to inject state
funds into MPS to shore up its capital
position. MPS will have to accept
branch closures, heavy job losses, pay
cuts for executives and forced losses on
investors but the EU has made explicit
provision for the bank to compensate
vulnerable retail bondholders.
While the details are still to be final-
ised, this deal following on from the
13bn recapitalisation of UniCredit
removes one of the biggest sources of
systemic risk in Italys banking sector.
It will fuel a growing sense of opti-
mism in Rome. Growth, which has con-
sistently lagged behind the eurozone
average, is picking up, the latest jobs
data are encouraging, and mainstream
politicians appear increasingly confi-
dent they will be able to beat back the
advance of the Eurosceptic Five Star
Movement. To capitalise on this mood,
elections could take place as early as
September, if political parties agree on
a reform of the voting system.
However, investors fretting over the
hand over their source codes to the gov-
ernment effectively shuts many of
them out of the market.
Chinas leaders have repeatedly
pledged to keep the door open to for-
eign investors and multinationals but
their actions tell a different story. This
law is just the latest in a series of legisla-
tive moves that appear to discriminate
against non-Chinese competitors. This
is reflected in investment trends. Last
year, Chinese companies invested four
times as much in Europe as European
companies did in China.
Global companies might be able to
bring a case against China at the World
Trade Organization over the law. But
that is unlikely: they generally try to
avoid scrutiny from Beijing. Yet even if
the Chinese authorities care nothing
for freedom of ideas or openness to
investment, there is a more self-inter-
ested reason to rethink this law.
Today, homegrown technology com-
panies like Alibaba, Tencent and Baidu
are giants inside the walled garden that
is the Chinese internet. But they
remain relative pygmies on the world
stage. One important reason for this is
that they have thrived in China pre-
cisely because their global competitors
have been kept at bay by the strictest
internet censorship in the world.
At the very least, this censorship acts
as a tax on innovation and hampers the
global competitiveness of Chinese
technology companies. By making life
even harder for outsiders, this cyber
security law will exacerbate the closed
nature of the Chinese tech industry and
further hamper domestic companies
ability to compete with the best Silicon
Valley has to offer.
The global companies most affected
by this legislation must set aside their
differences and work together to con-
vince Chinese lawmakers that this law
is not only wrong but also against
Chinas own economic interests.
political risks should be under no illu-
sion that Italy has put the problems of
its banking sector behind it.
For all the finance ministrys ebul-
lience over the MPS agreement, it will
find it much harder to win approval
from Brussels for a state bailout of two
other banks it would like to rescue,
Banca Popolare di Vicenza and Veneto
Banca. Although these are much
smaller institutions, they present a for-
midable political challenge: they play a
crucial role in an industrial region that
has suffered from a prolonged credit
squeeze that accompanied Italys
recession.
If they go under, the resulting job
losses and the blow to regional morale
would be a serious setback for the econ-
omy and would fuel the anger many
people in the region feel towards politi-
cians and institutions.
The MPS rescue will be of limited use
as a template for the Veneto banks,
because the latter have fallen below
minimum capital requirements, and
therefore cannot qualify for the same
kind ofprecautionary recapitalisa-
tion. A full bail-in of creditors would
be a far more painful process, compli-
cated by the Veneto banks dubious
practice of issuing azioni baciate, or
kissing shares, to hapless retail custom-
ers now exposed to their failure.
All of this underlines the pressing
need for the Italian authorities to con-
front the problems endemic in much of
the banking sector. Italy has too many
banks and too many branches weigh-
ing down their profitability. In the
absence of economic growth, bad loans
have festered on their books. The links
between bank boards, local govern-
ments and local business are too cosy.
There have been some efforts to
prompt consolidation, but successive
Italian governments have failed to do
enough. Deferring painful reform yet
again would be in no ones interests.
FINANCIAL TIMES
A political settlement must protect Venezuelans rights
Sir, Venezuela needs economic
recovery urgently (Venezuelan troops
show loyalty to Maduro, June 1). In
practice that is inconceivable without
two ingredients: suitable political
conditions and viable finances at
PDVSA, the national petroleum
corporation that is, in practice and for
the time being, the states overall fiscal
agent and virtually its only fiscal
structure.
Other external and internal
Eurozone offers national
central banks autonomy
Sir, Adam Glapinski, the president of
Polands central bank, considers the
continued existence of national
currencies in Europe clearly
advantageous (Deeper European
integration is on hold indefinitely,
May 31). He feels that it is important to
preserve monetary autonomy and
claims that autonomous monetary
policy is efficient for small economies.
Unfortunately, he does not offer a
single argument that would support his
statements.
One has to ask at least two questions.
First, what monetary autonomy means
in a small and open economy; and
second, why it is efficient for such
economies.
Monetary autonomy, or better said,
sovereignty, in a small and open
economy would imply that the national
central bank can autonomously set
policy interest rates that, in turn,
would help local growth by adjusting
the national economy to the conditions
of the local business cycle.
Unfortunately, that is impossible in a
small and open economy. If cross-
border capital flows are unrestricted,
the local currency is completely
convertible and the central bank wants
to keep the exchange rate stable then it
will not be able to set the local policy
interest rates autonomously.
It is one of the best-known rules of
monetary economics. We call it the
unholy trinity. With unrestricted
international capital flows and full
convertibility, it is impossible to set
interest rates and exchange rates
autonomously at the same time.
As a consequence, monetary
autonomy means next to nothing in a
small and open economy. In addition, it
cannot be considered efficient if it does
not exist.
The experience of the Czech National
Bank and the National Bank of Poland
supports this counterargument. When
these central banks considered the
stability of the exchange rate
important, they gave up autonomy in
setting policy interest rates. When they
adjusted the policy rates, it was either
at a very small, insignificant measure
or it was aiming at alleviating pressure
for the appreciation of the national
currency by setting the policy rate
artificially low. Policy rates have never
supported growth and employment in
the past 10 years either in Poland or in
the Czech Republic.
Joining the eurozone will not imply
any loss of monetary autonomy. On the
contrary, it would have two
advantages. First, the euro is the
perfect guarantee for exchange rate
stability given the fact that the small
and open economies of Europe
overwhelmingly trade with the
eurozone. Second, local politicians will
The Im Labour,
but . . . voters
will decide the
British election
Notebook
by Sebastian Payne
Letters
dmarches notwithstanding, to be
acceptable to a hard-pressed and
disillusioned people, a practical
political resolution of the countrys
tragic crisis now needs formal indeed
constitutional recognition, on all
sides, that the quid pro quo for political
normalisation (release of political
prisoners and honest elections), must
be consensus on unconditional
acceptance of the spirit of the rights
(to education, housing, healthcare,
At least hes wanted by someone
no longer be able to manipulate the
exchange rate for their own political
purposes. The most important
argument for Poland, the Czech
Republic and Hungary to join the
eurozone is that their national
governments could no longer destroy
central bank autonomy, distort
monetary policy and subordinate these
institutions to their short-term political
considerations.
Lajos Bokros
Professor of Economics and Public Policy,
Central European University,
Budapest, Hungary
Doubts over bloc linger but
integration is inexorable Careful what you wish for
Sir, In his article (Comment, May 31), in a Conservative victory
Adam Glapinski states that deeper
European economic and monetary
integration is on hold, and indeed
unnecessary. He argues that the
absence of double-digit inflation and
relatively stable domestic currencies of
non-euro members will prevent the
need for competitive devaluation and
thus negate the very reason for a
common currency in the EU.
Yet since the advent of the financial
crisis that spooked the EU in the years
after 2007, no less than six member
states have joined the single currency
(Cyprus, Lithuania, Latvia, Estonia,
Malta and Slovakia), whose official
users now number almost 340m
people.
It is time for those sceptical of the
merits of the single currency to realise
that this project is not going away and
that, in spite of the UKs decisions to
leave the union, those EU members
wishing to remain on the monetary
fringes will be treated as the club bore
that the UK represented to the
European political and economic
project for much of the past four
decades.
If you cant beat them, join them.
Peter Seilern
London W1, UK
Nothing has happened in the British
general election, yet everything has
changed. Theresa May hoped this
campaign would be a fait accompli:
she would romp home with a strong
Brexit mandate and a huge
parliamentary majority. Some time on
the stump would be a useful
opportunity to build bonds with
Middle England and demolish the
opposition Labour party.
In one sense, her hopes have been
fulfilled. As her sofa TV interview
with husband Philip confirmed, Mrs
May is bourgeois. But then again so
are most people. Its no surprise
ordinary folks often say shes one of
us. Like Sir John Major who in 1992
won the most votes in British electoral
history she has the personality to
outperform the Tory norm in
working-class areas. But in reality, she
has failed to capitalise on the moment,
often appearing robotic and brittle.
Something unexpected has also
happened. Jeremy Corbyn has started
gaining momentum. The Labour
leader who has struggled to run his
own office, never mind the country
saw his poll ratings rise from a very
low base. Put it down to a lot of media
training, low expectations or a fresh
unity among left-minded voters, but
the Jezentum is undeniable. A chill
has gone around Tory circles recently:
could the election gamble backfire?
The final heave of campaigning will
be a torrent of maddening polls,
outrageous statements and total
confusion. So now is a good time to
take a breather and recall some
access to basic services, and to dignity)
that Hugo Chvez articulated so
promisingly for his followers and that
his successor has so singularly failed to
begin to deliver.
Alongside a practical political
settlement on such lines which may
more effectively serve to see President
Nicols Maduro off the premises than
other forms of international or
domestic opposition pressure
improved liquidity for the cash-
Climate call highlights
Americas inward turn
Sir, Even by threatening to pull out the
US out of the Paris Agreement on
climate change (June 1), President
Donald Trump is creating damage
somewhere between a disaster and a
catastrophe. Obviously, refusal to curb
its greenhouse gases by the worlds
second biggest polluter will accelerate
global warmings impacts sea level
rise, severe storms, droughts, floods,
and extinctions of endangered species.
The environmental denier is also
ceding Americas leadership in the
world. No more, will other countries
follow our lead, or even agree to co-
operate with us, having seen that at
any time our serial bankruptee can pull
out, rescind, and cancel our agreed-
upon responsibilities.
We are losing the competition to lead
the next technological revolution, that
of sustainable energy production.
China now leads in solar, Denmark in
wind, Netherlands in tidal energy.
America leads in turning backward and
inward. As our planets temperature
increases, we will suffer more
destruction from hurricanes, flooding,
drought and fires. The productive jobs
not created by committing to
sustainable energy will require jobs to
clean up debris, fight fires, build
seawalls and bury victims.
Bruce Joffe
Piedmont, CA, US
Sir, I read your editorial comment,
The safer bet of a Conservative vote
(June 1), with some surprise and no
small degree of scepticism. Just how
exactly do you think a small state and
free markets can deliver social justice?
Surely there is a trade-off between the
first two and the third and the
challenge of our age is to get the right
balance through regulation or as you
dub it market meddling?
You might also be careful what you
wish for in a Conservative victory. Only
two years ago (April 30, 2015) you
condemned Ed Miliband for being too
preoccupied with inequality and
advocated the continuity of the
coalition along with constructive
engagement with Europe (sic!). Its
now widely recognised that the Leave
vote in the EU referendum was in large
part a protest at the unequal social and
economic consequences of the financial
crash and untrammelled free markets.
Of course if voters had ignored your
advice and Labour had won the 2015
election there would have been no EU
referendum and we would not be facing
the catastrophe of a hard Brexit, which
you rightly warn against so frequently.
Rosaleen Hughes
London SW4, UK
election fundamentals. No prime
minister has entered Downing Street
while being behind in the polls on the
questions of leadership and the
economy. Despite impressive gains,
Mr Corbyn lags behind Mrs May.
Then there is the mood on the
ground. I have been driving around
for the past five weeks to see if the
national rhetoric reflects reality. As in
the 2015 general election, it is a tale of
two campaigns. The first is one of
Labour momentum and fervent
grassroots support for Mr Corbyn. You
can find that on Twitter and small
pockets of the country. The other is
one of people plumping for the safer
option of Mrs May. You can find that
in the marginal seats, where I have
seen or heard little that supports the
idea of a Labour surge. Candidates
from all parties feel much as they did
when the election was called. The only
notable shift is towards the May
brand: it was impregnable at first, but
activists now say it is malleable.
In many heartland areas, Labour is
not in good shape. This election can be
summarised by one phrase: Im
Labour, but . . .. It is something that
Ive heard across the UK from
Cambridge to Cleveland, Bath to
Berwickshire. Unprompted, punters
explain why theyve been red all their
lives but cant do it this time. Some
say they will sit out this election,
others are backing Mrs May.
The but takes many forms. Brexit
is a common one although Labours
policy barely differs from that of the
Conservatives, people seem to think
Friday 2 June 2017
Email: letters.editor@ft.com
Fax: +44 (0) 20 7979 7790
Include daytime telephone number and full address
Corrections: corrections@ft.com
strapped but still anxiously
non-defaulting PDVSA will come into
its own.
Goldman Sachs PDVSA bond
purchase of May 30 may then look less
of a vultures pouncing in the night,
and more like darkness just before an
eagerly anticipated dawn.
Michael Kuczynski
Centre of Development Studies,
Pembroke College,
University of Cambridge, UK
Party widens gulf with
its approach to Brexit
Sir, Your endorsement of Theresa May
(FT View, June 1) is bewildering.
Whilst I largely agree with your
comments about her and the
opposition, the FT knows full well and
isnt shy to repeat that Brexit is the
single most important issue faced by
the next parliament. Indeed, you also
know full well that the outcome of the
negotiation will determine whether the
manifestos were worth the paper they
were written on. Why is this paper,
therefore, endorsing the single party
whose views on and approach to Brexit
differ the most from its own? Its
baffling.
Enrique Sacau
London N4, UK
Standing up for
start-up Britain
Sir, This election is about Britains
future prosperity and relationship with
the world. For entrepreneurship to
continue to grow and thrive in the UK,
we must have access to the biggest
market, the best talent and the
strongest possible economy. None of
this is possible with an extreme Brexit.
As leaders of ambitious tech
businesses we believe in a Britain that
is open, inclusive and outward looking,
and we are not prepared to settle for
less.
Thats why we and increasing
numbers across the tech community
are lending our support in this election
to the Liberal Democrats.
We believe the Lib Dems are the only
party standing up for start-up Britain.
We passionately urge others to work
with us to ensure that the UK remains
the best place for businesses like ours
to launch, grow and thrive.
Dinesh Dhamija
Former Chairman and CEO, Ebookers
Caspar Woolley
Founder, Hailo
Dan Sutherland
Founder, R3 Labs & Carrenza
Craig Fletcher
Founder, Multiplay
Tushar Agarwal
CEO and Co-founder, Hubble
Christian Hernandez
Managing Partner, White Star Capital
All signatories have supported the
letter in a personal capacity, For a full
list of signatories, go to ft.com/letters
Correction
c The Investment Support and Promo-
tion Agency of Turkey says that, in the
five years to the end of 2016, Turkish
contractors had won $36.4bn in Arab
region infrastructure and construction
projects, not $48.3bn as wrongly stated
in a Special Report on May 30.
the party is against leaving the EU or
will make a hash of the negotiations.
These swing voters say weve got to
protect our Brexit, echoing Mrs Mays
sentiment that there are forces trying
to undermine the referendum result.
Another but is Diane Abbott, the
shadow home secretary, who stirs up
an almost irrational anger in some
voters. The biggest but, however, is
Mr Corbyn. The opposition leader is
deeply disliked outside London. His
record of links with violent Irish
republicans, heavy tax policies, age
and even his dress sense turn away
those voters who normally decide
British elections. He remains the
Conservatives greatest electoral asset.
Which way these but voters go
will decide the outcome. Will they
take the clothes peg off their noses
and go home to Labour? Or will they
hold their breath and go Tory?
For decades, Tories have sold
themselves as the vote for us, the
alternatives are even worse option.
That sentiment is particularly true in
this election not least because of
their botched reforms on social care.
We havent had any time to sell our
positive messages, says one
influential Conservative. Instead,
weve been occupied on the doorstep
defending and explaining the U-turn.
Either way, this campaign may be
an own goal. My gut says Mrs May will
still romp home. Yet she might prove
it is possible to win an election and
still emerge a diminished figure.
sebastian.payne@ft.com
Friday 2 June 2017
Executives quietly turn away from globalisation
FINANCE
Gillian
Tett
A
company such as 3M, the
American manufacturing
powerhouse, seemed until
recently a beacon of glo-
balisation. It sells the
Post-it note and other famous products
all over the world. Indeed 60 per cent of
its $30bn revenues, and 40 per cent of
its workforce, sit outside American
shores.
But here is a curious thing: if you ask
Inge Thulin, the Swedish-born chief
executive of 3M, to describe corporate
strategy these days, he does not speak of
globalisation. Instead, he prefers to talk
about localisation and the benefits
of operating in the mighty US of A.
We employ 20,000 people in manu-
facturing in America and we have
expanded this by 10 per cent in the last
The Brexit
election leaves
Britain the loser
GLOBAL POLITICS
Philip
Stephens
T
ime to get this straight. Brit-
ain is set on leaving the
worlds richest single mar-
ket in order to re-apply for
access on much less favour-
able terms to the very same market?
Well, yes. Forget it; it will not happen.
You Brits may hanker for the past, but
you are not that dumb.
The further you travel from Europe,
the wider the enduring gulf of incom-
prehension about Britains decision to
leave the EU. In Washington, you still
find the odd diehard in Donald Trumps
administration who thinks it a good
idea. The president, though, has
dropped talk about the break-up of the
EU. As for a quick trade deal with post-
Brexit Britain, Mr Trump has one of two
more pressing items on his agenda.
The most frequent observation, and
this applies to policymakers in Tokyo,
Beijing, Delhi and beyond as well as in
Washington, is somehow Brexit will not
happen. Theresa Mays government, the
voters, Germanys Angela Merkel,
Frances Emmanuel Macron some-
one, somewhere will derail the proc-
ess. The UK will end up with some form
at least of associate EU membership.
It is not hard to understand the
Trade realities expose the absurdity of a no deal option
ECONOMICS
Martin
Wolf
N
o deal is better than a bad
deal. That, as almost every-
body must now know, is the
position of the woman who
is and would be UK prime
minister. But this proposition is either
empty or nonsensical.
Why empty? The deal the UK will
have with the EU has to be worse than
the one it has now: that is what Brexit
means. Why, after all, would the EU
offer better terms to a non-member? So,
it will be bad. Theresa Mays proposition
only has meaning if she indicates what
sort of bad deal, in the range of bad
deals, would be worse than no deal at all.
But this the prime minister has not
deigned to indicate.
Why nonsensical? For trade to con-
tinue after Brexit, there must be deals.
five years, he told me last month at the
Council on Foreign Relations in New
York. Our strategy has changed. If you
go back [several] years, there was a
strategy of producing at huge facilities at
certain places around the world, and
shipping it to other countries. But now
we have a strategy of localisation and
regionalisation. We think you should
invest in your domestic market as much
as you can.
This is a thought-provoking state-
ment, not least because I have heard
several other executives echo it in pri-
vate. For the past three decades western
multinationals have been outsourcing
production to low-cost places such as
China, creating global supply chains.
But today, instead of celebrating free
trade, American executives are calling
for fair trade, along with reciprocity
and equalisation of trade deals. This is
a euphemism for better terms for US
companies.
What is new today, is the conversa-
tion [about trade], Andrew Liveris,
chief executive of Dow Chemical
recently observed. [American compa-
nies] have not had fair access to many
doubts. Britain, by its own lights, has
built its prosperity on a role as a great
trading nation. Yet by 2019 it will be the
only significant European economy sit-
ting outside all three of the continents
trading blocs the European Economic
Area, the European Free Trade Area as
well as the EU. This really does not make
sense.
For her part, Mrs May is fighting an
election to prove such naysayers wrong.
When the prime minister called the
June 8 poll she said she needed a fresh
mandate to negotiate Brexit. The con-
stant refrain since of a lacklustre and
shaky Conservative campaign has been
that Mrs May alone offers the strong
and stable leadership needed to strike
a deal with the EU27. She would get
Brexit right, make a success of Brexit,
get the best deal. Take your pick.
Election campaigns, with their ten-
dency to elevate obfuscation over argu-
ment and slogan above fact, are often
dispiriting. None, I can recall, more than
this one. Brexit is the most consequen-
tial political and economic choice the
nation has faced since 1945. Yet beyond
the glib promises to be a tough negotia-
tor, Mrs May refuses to talk about life
outside the EU.
She has previously promised that
Britain will leave the single market and
customs union and banish the European
Court of Justice. That adds up to a pretty
hard Brexit. Yet she also talks about a
deep and special post-Brexit partner-
ship. The electorate, though, is denied
any discussion or debate, or any oppor-
tunity to interrogate the government
Brexiters find it difficult to understand
that the UK must co-operate with the
EU, even after Brexit. Co-operation
means deals. The question is not
whether the UK needs deals, but rather
which deals it must have.
Many seem to think that no deal
would mean trading with the EU on
World Trade Organization terms. The
UK could in theory trade with the EU in
the same way as the latter trades with
the US. A series of posts on Conservative
Home, a website for Tory activists, dis-
cusses what this might mean. But that
analysis is done in terms of policy, not
the likely effects on trade. The latter is
far more relevant.
The UK would be leaving the worlds
most integrated trading arrangement.
We know that the deeper such arrange-
ments are, the bigger their impact on
trade. This is why trade within coun-
tries, the most integrated arrangements
of all, is far greater than geography
alone would suggest. A recent World
Bank study argues that if the UK shifted
from EU to WTO terms, trade in goods
with the EU would halve and trade in
services would fall 60 per cent.
FINANCIAL TIMES
Comment
markets for a while. We got used to
that . . . but not any more. Or as Mr
Thulin says: Things like Nafta are
wo r k i n g we l l , b u t i t c a n b e
improved . . . what we want is fair
trade.
Does this simply reflect the new mood
music in the White House? Yes, in some
respects. Business leaders are trying to
ingratiate themselves with the White
When Trump began talking
about restoring US
manufacturing, he tapped
into an emerging trend
House (and avoid any tweet attacks) by
aligning themselves with President
Donald Trumps Make America great
again rhetoric.
Many also genuinely welcome Mr
Trumps economic reform pledges. occurred: 31 per cent of companies
Indeed, five months after the inaugura-
tion, executives support for the presi-
dent still seems strikingly high, regard-
less of the endless scandals around the
about the implications or alternatives.
Ask about the future of British manu-
facturing, the City of London, the shape
of a national regime for agriculture, or
the rough outlines of a national immi-
gration policy and the response is
silence. In her pitch for voters who once
backed the UK Independence party, Mrs
May promises draconian cuts in the
number of immigrants. No discussion is
permitted of the consequences.
Brexit reaches beyond economics, of
course. It will have a significant impact
on defence and security, on Britains his-
toric role in shaping European
responses to external threats, and on
the intelligence gathering and data col-
lection used to track terrorism. Think
about the sanctions imposed on
Vladimir Putins regime in response to
Beyond the glib promise
to be a tough negotiator,
May refuses to talk about
life outside the bloc
Yet a shift to trading on WTO terms is
not what no deal might mean. Trading
after Brexit requires a great many deals
on new administrative procedures gov-
erning certification of regulatory stand-
ards, customs processes and so forth.
Trade requires not only such deals, but
changes in procedures that would make
them work, post-Brexit. So deals will
not only have to be reached, but they
The UK has imposed
a diversion of effort
upon its partners at an
exceptionally testing time
must be done well before March 2019. In
fact, it is hard to see how trade would
continue to flow if these deals were not
done by the summer of 2018.
Malcolm Barr of JPMorgan has out-
lined these issues. When the UK leaves
the EU, its goods would cease to be EU
goods. A new set of procedures would
be needed to keep trade between the UK
and EU running smoothly. Otherwise,
White House or this weeks furore about
the Paris climate change accord. Presi-
dent Trump is pro-growth and very
engaged this is good from the perspec-
tive of doing business in the United
States, argues Mr Thulin, once again
evoking sentiments I have heard other
chief executives toss around.
But there is a further crucial factor
behind this linguistic shift: when Mr
Trump started talking about restoring
US manufacturing last year, he was not
swimming against the tide. On the con-
trary, he tapped into a subtle trend that
was already emerging.
To understand this, take a look at a
survey of US companies conducted by
Boston Consulting Group. This survey
showed until recently that American
companies were busy building cross-
border supply chains: in 2012, 30 per
cent said China was the most likely des-
tination for US company investment.
But in 2015, BCG found a shift had
much to robots and digital technologies
planned to boost production in Amer-
ica, but only 20 per cent said the same
about China.
One reason for this shift is a rise in rel-
its aggression against Ukraine, or the
centrality of the Schengen information
system and the European arrest war-
rant in hunting down terrorists.
This week Germanys Ms Merkel
attracted excited headlines when she
remarked that continental Europeans
could no longer be sure the US and UK
were reliable partners. Germany,
France and the rest would have to take
control of their own destiny.
In part, the chancellor was playing
domestic politics, outflanking Martin
Schulz, her Social Democrat challenger
in this autumns election. In geopolitical
terms, though, she was stating the obvi-
ous. Mr Trump invests no importance in
the transatlantic alliance, while Mrs
May wants a hard Brexit. It goes without
saying that the rest of Europe should
modify its view of these relationships.
The significance of Ms Merkels
remarks lay in the recognition of just
how fast the world is changing. The pil-
lars of the postwar order, whether the
Atlantic alliance or the institutions that
give form to the shared values of the
west, can no longer be taken for granted.
the administrative burdens would
become impossibly cumbersome. Such
facilitation agreements exist between
the EU and all its main trading partners.
One difficulty, notes Mr Barr, is that
25 per cent of UK exports to the EU by
value go via Calais, which has limited
capacity to process non-EU goods.
Another is that, without a deal (or
deals), UK drivers of heavy-goods vehi-
cles would not be licensed to drive inside
the EU. A well-known difficulty is the
arrangements to handle the border
inside Ireland. Particular difficulties
will arise with trade in food and food
products, chemicals and pharmaceuti-
cals. Quite simply, continuing trade at
anything like current levels will require
a host of technical deals.
No deal is an absurd notion. To this,
optimists will declare: yes, but it will be
easy to reach agreement with the EU on
such technical deals, because it is in the
economic interests of the latters mem-
bers to do so. To this glib optimism, I
offer two answers.
First, the two sides will have little time
to agree and then set up the new proce-
dures. Above all, they cannot start until
ative wage costs in China. Another is
that production costs in the US have
fallen because of automation and cheap
energy. However, a third point is that
chief executives have realised that long
supply chains create political and logis-
tical risks. The days of outsourcing are
declining, Jeff Immelt, General Electric
chief executive, observed late last year.
Chasing the lowest labour costs is yes-
terdays model.
Now, this does not mean people such
as Mr Thulin, Mr Liveris or Mr Immelt
are turning their back on the globe; in a
world of localisation, there is still
incentive to keep overseas production
serving overseas markets. Nor should
anybody overstate the speed of this
shift: it is subtle and slow.
But the main point is this: even before
Mr Trump arrived in office, the C-suite
was losing its blind faith in globalisation.
For better or worse, we face a more
localised world. And that trend owes as
tive, the focus will be on developing
as any political firebrand and will
probably outlast any president, too.
gillian.tett@ft.com
The absence of certainty has become an
organising assumption of European
security. And this, hard to believe, is the
moment that Britain chooses to cut
loose from its own continent.
Sad to say, those policymakers in far-
flung capitals are probably wrong in
their assumption that something will
derail Brexit. As the pro-European Lib-
eral Democrats have discovered, the
nation is not in the mood to reopen the
referendum debate.
The election campaign has shown Mrs
May to be anything but strong and sta-
ble. Brittle and prone to reverse herself
are more like it. She can expect to win on
June 8 only because of the self-indul-
gence of Jeremy Corbyn, a Labour
leader who has taken his party to the
distant fringes of far-left irrelevance.
And then? By Mrs Mays account, it
will be straight into battle in Brussels.
This fight has the capacity to damage
both sides, but there is one irreducible
certainty. Deal or no deal, Britain will
emerge a loser.
philip.stephens@ft.com
they know what to prepare for. The
framework for post-Brexit trade will
first need to be known. They need, for
example, to decide soon that there will
be no transitional arrangement if they
are to shift early enough to WTO terms.
Second, it is ludicrous to presume that
the rest of the EU will co-operate enthu-
siastically in creating the new trading
procedures that are needed. Do Brexit-
ers find it so hard to believe EU mem-
bers would accept some costs in order to
satisfy political objectives? Do they ever
look in the mirror?
The UK has imposed a diversion of
effort upon its partners at an exception-
ally testing time. It has undermined the
credibility of a project viewed as exis-
tential by many of its members, includ-
ing its most powerful ones. Brexiters
have poured ridicule and scorn on the
whole venture. Now they imagine the
UK can refuse the EUs terms for an ami-
cable divorce and yet still count upon
active and enthusiastic co-operation in
ensuring the smooth flow of trade.
The idea of no deal is just ridiculous.
martin.wolf@ft.com
11
A fallacy that
slows the
artificial
intelligence race
OPINION
Luciano
Floridi
G
reat champions know how
to end their career at the
peak of their success. Deep-
Mind, Alphabets artificial
intelligence lab, has
decided that its computer program,
AlphaGo, will no longer focus on win-
ning the board game Go. Instead,
according to a blog post co-written by
Demis Hassabis, DeepMind chief execu-
advanced general algorithms that could
one day help scientists as they tackle
some of our most complex problems,
such as finding new cures for diseases.
The ambition is justified. AI may lead
to remarkable breakthroughs, espe-
cially in the hands of thoughtful people.
Yet these spectacular developments
may be more easily achieved if a misun-
derstanding is removed.
Some seem to think that AI is about
coupling artificial agency and intelligent
behaviour in new programs. Yet the
opposite makes more sense: it is about
decoupling successful problem solving
from any need to be intelligent. Only
when this is achieved is it successful.
The best definition of AI was written
in 1955 by US computer scientist John
McCarthy and colleagues, part of the
classic proposal for the Dartmouth
summer research project on AI, which
established the field. The problem, they
wrote, is taken to be that of making a
machine behave in ways that would be
called intelligent if a human were so
behaving.
Notice the counterfactual: were a
human to behave in that way, we would
call that behaviour intelligent. The defi-
Autonomous cars are not
driven by humanoids; they
reinvent the car and its
environment altogether
nition does not say the artificial agent is
intelligent, but that a human would
have to be to achieve the same goal. To
interpret it otherwise is a fallacy that
smacks of superstition. It would be like
saying that the river reaches the sea by
following the best possible path, remov-
ing obstacles in its way; but, if this had
been done by a human, we would have
considered that behaviour intelligent;
so the rivers behaviour is intelligent.
The whole and only point is to per-
form a task such that the outcome is as
good as, or better than, what human
intelligence would have been able to
achieve. How is not in question, only
the outcome. This is why AI is not about
reproducing but replacing human intel-
ligence. A dishwasher does not clean the
dishes as I do. But in the end its clean
dishes are indistinguishable from mine
indeed, they may be cleaner. Simi-
larly, AlphaGo does not play like world
number one Ke Jie, but it wins anyway.
AI is the continuation of intelligence
by other means. So autonomous cars are
not driven by humanoids seated at the
wheel; the technology reinvents the car
and its environment altogether.
It is thanks to this decoupling that AI
can colonise tasks whenever this can be
achieved without understanding,
awareness, sensitivity, hunches, experi-
ence or even wisdom. In short, it is pre-
cisely when we stop trying to reproduce
human intelligence that we can success-
fully replace it. Otherwise, AlphaGo
would have never become so much bet-
ter than anyone at playing Go.
McCarthy knew this very well. This is
why he complained about treating play-
ing chess as a case of AI. He was right. It
is not. But he was wrong in thinking that
it is therefore not a good alternative.
The same holds for AlphaGo. If this mis-
understanding is removed, three obvi-
ous developments lie ahead.
First, AI should stop winning games
and be used to gamify, thus bringing
anything that can be turned into a game
within its scope. If I were DeepMind I
would hire a team of game designers.
Second, in gamified contexts, AI will
be matched only by AI and its internal
interactions may become too complex
to be fully understandable by outside
admirers. We may enjoy watching AI
play as we enjoy Bach being played.
Finally, expect human intelligence to
have a different role wherever AI is the
better player. For it will be less about
solving problems and more about decid-
ing which are worth solving and why.
The author is director of the Digital Ethics
Lab, University of Oxford
12 FINANCIAL TIMES Friday 2 June 2017

Australian Reits: harbouring doubts

Soaring house prices in cities such as Sydney have led to additional taxes on foreign investment. But cheap
debt is a bigger factor. More cautious investors should look to Reits with a high proportion of rental income

Property stocks and Sydney house prices Property cap rates

Twitter: @FTLex Email: lex@ft.com
Barclays:
payout of Africa
Forget the romanticism of Karen
Blixens books. Barclays
announcement that it will soon be able
to deconsolidate its African bank after
agreeing a large share sale should be
seen primarily as an opportunity for it
to pay out more cash to investors.
When he cut the dividend last year,
Barclays boss Jes Staley justified it in
terms of restructuring the lender to
concentrate on its core retail and
investment banking franchise, based
out of London and New York, and the
need to build more capital.
Barclays targets a core equity tier one
ratio of 13 per cent. Once completed,
later this year or early next, the sale of
Barclays Africa should see it home
adding 73 basis points to the lenders
existing 12.4 per cent. An additional
10bp will come from the sale of
Barclays Egypt.
Analysts expect Barclays to generate
about 18p per share of earnings this
year, equivalent to a further 100bp of
capital. The dividend is expected to be
held at 3p. Yet with capital secure, the
payout could in theory triple.
What could go wrong? Losses from
disposals on the non-core bank
continue to drag on earnings, although
these should decline substantially in
the second half.
The big unknown remains the
outcome of Barclays case with the US
Department of Justice over alleged mis-
selling of mortgage securities. The
bank has made no provisions for this
so, depending on the verdict, investors
are in the dark regarding any hit to
capital and earnings. Mr Staley could
yet lose his job, over his handling of a
whistleblower.
Another substantive concern is
consumer credit. The highly profitable
card businesses in the US and the UK
may have peaked, not least because
unemployment (highly correlated with
impairments) is at historical lows in
both markets. In the US, Barclays has
increased its credit card lending by
16 per cent annually over the past two
years. Berenberg reckons the overall
cost of risk will rise from 245bp to
330bp still below its historical
average. If a recession hits then group
earnings would be reduced by one
quarter.
That may explain why Barclays
shares barely moved yesterday, and
still trade at 30 per cent below than
their tangible book value. That looks
mean. If impairments stay low, expect
that discount to close given the
potential for larger dividend payments.
US oil services:
pumped
On a relative basis, energy stocks are in
a bear market. The MSCI All Country
Energy index has trailed the broader
global index by 35 percentage points in
the past three years. Even after last
years oil price rebound, boosted by an
Opec production cut, the sector
remains in a rut. Get ready for more
bad news: US oil production could hit
an all-time high this year, say analysts
at Rystad Energy. Unless demand can
eat into inventories more quickly than
it has, the equity bear market should
continue throughout the summer.
US onshore oil output is surging,
according to the Energy Information
Agency. By the end of June, production
should be up 540,000 barrels a day.
More than 90 per cent of this increase
has come from one large shale region,
the Permian in the south-west. The
other two key areas the Bakken in
North Dakota and the Eagle Ford in
South Texas have contributed little
to this recovery.
In the second half of this year, these
two will meaningfully add to US supply.
Meanwhile, the Permian should chug
along on its steady growth path. All
three regions together could put
900,000 barrels on to the market daily
by the end of the year.
Good news, you might think, for US
companies that provide rigs and
fracking equipment for oil explorers. If
so, it is not apparent in their share
prices. The Philadelphia Oil Service
index has shed 24 per cent this year.
Rig company Helmerich & Payne aims
only to climb out from a loss, while
fracking specialist Halliburtons
forward price to earnings multiple
compresses to just 10 times in 2018,
half this years estimate. Its share price
has lost more than a fifth since this
years peak in late January. The
sensitivity of oil service shares to the
broader energy sector negates any
prospect of better future earnings.
Presumably, markets have no faith in
analysts estimates, even though oil has
Rebased
Sydney house
price index
2012 13
FT graphic Sources: Thomson Reuters Datastream; JLL; Citi Research; Reserve Bank of Australia
Fair dinkum, as the locals might have
it. Australias eastern province of
New South Wales is raising taxes on
foreign real estate investment in a bid
to cool rapidly rising house prices.
They are unlikely to be successful.
According to a 2014 study by the
Reserve Bank of Australia, the share
of foreign investment approvals has
fluctuated between 5 and 10 per cent
of total property investment.
Concentrated on premium
developments in large urban centres,
these buyers use little leverage and
have a long time horizon. This
distinguishes them from domestic
real estate investment trust investors.
Cheap debt is a much bigger driver
of the real estate boom. As such,
investors in Australian Reits should
steadied around $50 per barrel. A
bullish run for US oil production
should give bears confidence.
PPG/Akzo:
cold war
Geopolitical tension between the US
and Europe is ratcheting up. One could
say a similar dynamic has appeared
across boardrooms.
Yesterday PPG Industries abandoned
its 27bn pursuit of paint rival Akzo
Nobel. The scuttled tie-up comes close
on the heels of Kraft Heinzs decision to
ditch its pursuit of Unilever, the
Dutch/UK consumer group.
But the data tell a different story.
Cross-border M&A between the US and
200
S&P/ASX Real Estate index
180
160
140
120
S&P/ASX 50 index
100
80
14 15 16 17
favour those with less leverage and
higher levels of rental income if they
believe that a slowdown is likely.
Reits revenues are a mix of rental
income and capital gains from selling
newly developed real estate. Profits are
stated after subtracting interest
expenses. Shares in the more proactive
sellers such as Mirvac have
outperformed they profited by
flipping developments as prices kept
rising. Real estate prices in Sydney have
doubled since 2009, though Citigroup
research indicates that rent levels on
average have not run up nearly as fast.
That explains the performance
divergence between Reits with higher
and lower levels of development
income. Capitalisation rates, the ratio
of net operating income to the asset
Europe this year is at decade highs.
And the big tie-ups go in both
directions.
Reckitt Benckiser of the UK is buying
Mead Johnson for $18bn. Johnson &
Johnson is taking out Actelion for
$29bn. Big, mature companies are
making big, mature decisions to
accelerate growth.
The $172bn in US and European
mergers in May is the highest total
during that period in over a decade,
according to Thomson Reuters data.
Whatever political wobbles still exist,
the European economies and financial
systems have stabilised. For Americans
flush with cash and seeking new
avenues, Europe looks tasty.
Akzo and Unilever made all the right
noises about seeking real long-term
value on their own. Their governments
Net rental income as % of property value
Current Normal
Retail
Office
Industrial
0 1 2 3 4 5 6 7 8
Foreign residential investment
As a % of total
12
8 It is late and the activist hedge fund
4 Elliott is believed to hold more than
0 the 20-30 per cent required to scupper
1992 96 2005 14
portfolios market value, have
contracted sharply in recent years.
Higher capitalisation rates and
bond yields, closer to historical
averages, would create downward
pressure on development sale prices.
Funds with a higher debt burden
would find refinancing costly. A loss
on the Reit share would follow,
though rental income should not
suffer. Operating earnings for the
nine largest trusts could decline by
just under a fifth in that scenario.
The trouble is that the most highly
geared trusts are often the most
active developers. Those spooked by
elevated real estate prices should
look to the underperformers of the
recent past, such as Vicinity Centres,
for more defensive returns.
did their respective duties to
discourage the foreign interlopers.
Most analysts doubted Akzos ability
to achieve a market valuation similar
to what PPG was offering, even if it
spun off some businesses. Give PPG
credit, though. It showed verve to
push Akzo for nearly three months.
Kraft gave up within hours of
Unilevers rejection.
It is unclear what else PPG could
have done to break Akzos resistance.
Even the protestations of Akzo
shareholder Elliott Management were
not enough. PPG should walk away
rather than just keep bidding against
itself. But regrettably, no equally
attractive asset awaits on the horizon.
At some point Akzo may see the folly
of its ways and show more respect for
its shareholders.
Qualcomm/NXP:
chip more in
Qualcomm would have got away with it
were not for those pesky hedge funds.
In October, the US chipmaker agreed to
acquire NXP for a less-than-generous
$110 a share. Now, Elliott Management
is demanding a higher price.
does not ostensibly have the votes.
3 per cent of NXP a long way from
the deal. True, only 14 per cent of NXP
shares have been tendered so far, but
that may reflect the fact that the deal
still has to win regulatory approvals in
Europe and China. Many investors will
tender once that process is complete,
which is expected to be in October.
But the top of the register is a whos
who of hedge funds, from Och-Ziff to
DE Shaw to Farallon Capital and that
is just the disclosed ones. There is no
guarantee that long-only holders,
headed by T Rowe Price, will fall in line
with the companies. Other holders,
especially retail investors, may not care
enough to tender their shares. The
offer requires 80 per cent acceptance,
but this can be reduced to 70 per cent
with NXPs consent.
Qualcomm, which is buying
automotive semiconductor leader NXP
to diversify beyond the mobile phone
market, had offered a standard
premium of 34 per cent above NXPs
undisturbed share price. But the Dutch
company was still digesting its own
acquisition of Freescale and waving
goodbye to big private equity owners.
Its operational performance since
October has exceeded expectations.
The Philadelphia Semiconductor
index has risen 32 per cent since the
deal was announced. If one assumes
that NXP would have performed in
line, its shares might well have reached
the $110 bid level by now. In fact, it
may have outperformed the index,
given that its growth and margins are
above the industry average.
Qualcomm could just tough it out.
After all, investors hedge funds or
not may prefer cash in hand. But the
likelihood is that the bid will rise.
Lex on the web
For notes on todays breaking
stories go to www.ft.com/lex

CROSSWORD ACROSS
1 Bouncer to bar artist and
5 Water bird run over, crossing
motorway in German city (9)
No. 15,565 Set by REDSHANK politician entering (10) 7 Start penning fourth scheme
6 This writers visiting one city (10)
       
or another (4) 8 Old king seen randomly
9 Eliza, Violet or Daisy (6,4) poking behind craft (10)
10 Clothing etc covering top of 11 Ready to go, replete, fly off
  legs (4) side, dropping at first (5-7)

12 I am lost and numb, wandering 13 Occupying soldiers follow
around top of stairs? (12) sailors original point (10)
 15 Bishop drops gesture? Good 14 When all else fails, make do
 
idea! (9) with this salt possibly? (4,6)
17 The plebs picked this up in 16 Lacking faith, he lives in top
   Palatine (5) floor (9)
18 Group backed feature of 21 King abandons knights
concert etc occasionally (5) protection for affair (5)
  19 Celebrates noble game, 22 Finish off light necklace once
clapping hands (4-5) (4)
20 Ditzy dame in red top stole 23 Spout English with German
 
the show (12) (4)
24 Favourite partners response,
  central feature of wedlock (4)
25 Burly bouncer primarily
 
manages safe area (10)
26 Crazy nights in Paris ones Solution 15,564
forgotten (4) 6 8 % 7 / ( 7 + 8 0 % 6 8 3
  27 Wimp bothered Yankee in 1 2 $ 8 $ 8 $
, * 1 , 7 ( 3 / $ 1 * ( 1 7
small boat (7-3) 3 ( ( 6 / 7 ' 7
DOWN 3 ( & 8 / , $ 5 & 2 + ( 5 (
( + < / 5 0 5
JOTTER PAD 1 Substitute meat in cost of 7 : , 1 % $ 1 $ 1 $ 6 . , 1
upkeep (4) 1 3 ' 3 1 ,
2 Wild morning, fine later (4) % 5 $ . ( / , * + 7 2 ' ( 5
$ 1 1 $ % 1 (
3 Quiet appreciation for / , % , ' 2 5 ( & , 7 $ / 6
forecasters skill (12) ) , 8 $ / 7 3 ,
2 / ' ) / $ 0 ( 6 7 8 3 , '
4 Start using computer, brand 8 ( $ ( ( ( 8
new (3,2) 5 ( 7 , 5 , 1 * % 5 , ' * (
Friday 2 June 2017 13

Palo Alto 3i National Grid EuroStoxx Brent oil Euro/dollar Nasdaq 10-year
Where to Go next? China to Networks 600 Treasury
cash in on machine learning 18% 2.7% 3.6% 0.43% 0.97% 0.28% 0.55% 3bp
INSIDE BUSINESS, PAGE 14
$139.97 917.5p 10.50 391.66 $51.25 $1.1210 6,232.482 2.23%

Akzo brushes off 27bn takeover Short

View
3 US paint rival PPG withdraws offer 3 Dutch group to focus on creating two businesses
broader chemicals industry is undergo- example of one of Americas largest com- added: We believe this will lead to a
Eric
ARASH MASSOUDI AND MICHAEL POOLER
ing a ferocious round of consolidation. panies being rebuffed by a European Akzos step change in growth and long-term Platt
A bitter three-month takeover fight But Michael McGarry, the PPG chief rival, highlighting the political difficulty boards have value creation for our shareholders and
between two of the worlds largest paint executive who has been repeatedly of securing a cross-border takeover with- all other stakeholders.
and coatings companies was won by rebuffed by Akzos leadership, said he outtheco-operationofthetarget. consistently Fuelled by an abundance of cheap The high-yield bond market at the moment has something
Dutch group Akzo Nobel yesterday after had abandoned the attempt after his lat- Other high-profile failures include refused debt and an inability to grow organi- in common with the fashion industry: it rewards risk.
US rival PPG Industries said it was aban- est overture went unanswered. Kraft Heinzs $143bn bid to buy Anglo- cally, chemicals companies have used With yields falling back to their lowest levels since 2014,
doning its 26.9bn pursuit. We made a final attempt for engage- Dutch consumer group Unilever, Mon- to engage large-scale acquisitions as a way to cut it is the most outr debt that has proved profitable, the
Despite weeks of threats from PPG ment late last week and through a letter santos multiple attempts to acquire Michael costs and boost their earnings. bond market equivalent of the pearl-encrusted jackets and
that it would take its offer directly to to Akzo, Mr McGarry said. However, Swiss agribusiness rival Syngenta and McGarry PPGs initial approach, made by Mr voluminous Pepto-Bismol-coloured gowns that have been
Akzo shareholders, the Pittsburgh- Akzos boards have consistently refused Pfizers efforts to buy UK pharma group PPG Industries McGarry in March, was immediately a hit among the collections shown this week.
based group decided to walk away, with- to engage and did not respond to our call AstraZeneca. greeted with hostility by Mr Bchner Just a handful of bonds those trading in deeply dis-
drawing its takeover proposal for the or letter. Akzo said it told PPG that it had but had the support by many top Akzo tressed territory have been key to generating returns.
maker of paints including household Shares in Akzo moved little on the received Mr McGarrys letter and its shareholders. Under takeover rules in Distressed bonds, which trade with a yield more than
brand Dulux. decision, closing up 0.6 per cent in board was fully evaluating it before the Netherlands, PPG faces a six-month 10 percentage points above benchmark Treasuries, have
The assault on Akzo, which was Amsterdam trading at 74.93, giving it a the withdrawal. Ton Bchner, Akzos cooling off period, during which it returned more than 11 per cent to investors this year.
encouraged by the activist hedge fund market value of 18.6bn and reflecting chief executive, said the company cannot make further bids for Akzo. The wider high-yield market has advanced less than 5 per
Elliott Advisors, would have created a investors expectations that PPGs would continue to focus on its strategy Additional reporting by Mehreen Khan cent.
dominant leader in the $130bn paints advances were doomed to failure. of creating two businesses: paints and Lex page 12 Portfolio managers hoping to forgo risk with stable and
and coatings sector at a time when the The unsuccessful bid is the latest coatings, and speciality chemicals. He Akzo fails to submit page 16 staid high-quality names the unremarkable black uni-
form of the fashion world, if you will will struggle to
impress their investors.
Research this week from Marty Fridson of Lehmann
Livian Fridson Advisors showed that in months with very
low volatility you have to go to the lowest-quality rungs of
Lane change the junk universe to outperform significantly. Investors
Deere bids 4bn for who avoided those parts fell short of the Bank of America
Merrill Lynch high-yield benchmark, he found. And we
German road group are in a low-volatility world.
Yet investors who hope to own them are finding these
out-there scarce. The number of bonds in BofAs distressed
index have fallen to 96, from a high of more than 700 last
Deere, the US farm equipment maker, is year. Data from Goldman Sachs show that just three com-
making a play for the booming panies account for more than half the bonds that offer dou-
infrastructure construction market by ble-digit yields.
striking a deal to acquire privately held The replenishment many portfolio managers have
German road construction equipment longed for has not happened yet. Despite a 50 per cent
maker Wirtgen for 4.4bn in cash, jump in lowly rated corporate issuance bonds rated tri-
writes Pan Kwan Yuk in New York. ple C plus or lower new offerings remain relatively pal-
Including debt and other try. Issuance of new triple C bonds is more than 60 per cent
consideration, total enterprise value for below the average level between 2013 and 2015.
the deal is 4.6bn. Fashion designers know that a good shortage can enliven
With sales of 2.6bn last year, demand from consumers. Investors are stuck playing the
Wirtgen is one of the worlds biggest same game.
manufacturers of road construction
equipment, with its products covering
the entire road construction process US distressed groups
including milling, processing, mixing, Number
700
paving and compaction.
Spending on road construction and 600
transportation projects has grown at a 500
faster rate than the overall construction 400
industry and tends to be less cyclical.
300
There is recognition globally that Despite a 50 per
infrastructure improvements must be a 200 cent jump in
priority and roads and highways are 100 lowly rated
among the most critical in need of repair 0 corporate bond
and replacement. issuance, new
The companies aim to close the 2015 16 17 offerings remain
Source: Bank of America Merrill Lynch
transaction, which is subject to relatively paltry
regulatory approval, by January 2018.
eric.platt@ft.com

Pimco left exposed by plunge in price

of struggling Banco Populars bonds
THOMAS HALE LONDON be wound down if it failed to find a losses at times of distress by converting
buyer. But the EU agency charged with to equity or being written down when
Pimco, one of the worlds largest asset
overseeing bank failures later issued a the lenders capital ratio falls below a
managers, has been caught out by the
statement saying it never issues warn- certain point.
plunge in the price of Banco Populars
ings about banks. Popular this month disclosed a 137m
riskiest bonds after it was left holding
A Banco Popular perpetual bond with loss for the first quarter, linked to higher
hundreds of millions of euros in expo-
a face value of 500m is quoted at 61 provisions on its real estate portfolio.
sure to the distressed Spanish bank.
Rolls-Royce sweet talks cents on the euro, while the banks The banks shares have lost almost half
suppliers to meet backlog Banco Popular is the latest European 750m AT1 is at an indicative price of 55 of their value this year.
bank to face questions on bonds issued cents on the euro. AT1 bond investors So far, no AT1 bond has incurred
After almost a decade of booming at the lowest level of seniority, known as would be the first debtholders to be losses for investors but Populars debt
aero engine orders, Rolls-Royce additional tier 1 bonds, after a collapse wiped out if Popular were wound down. has now plumbed lower depths than
must deliver on its 71bn backlog. in prices for such debt issued by Deut- Pimco owned 279m of Populars out- Deutsche Bank, whose paper hit a nadir
To do that, it will have to rely on sche Bank became the locus of fears for standing 1.25bn of face value in AT1 of 70 cents in September.
some 300 direct suppliers that Europes banking system in early 2016. bonds at the end of March, according to It would be the first triggering of an
range from quoted multinationals Prices for the two securities dropped regulatory filings, making it by far the AT1, said Lloyd Harris, an analyst at
to private family-run businesses. sharply to record lows yesterday before largest holder at the time. The asset Old Mutual. These types of events are
Analysis i PAGE 15 edging higher, after reports that senior manager declined to comment. more likely for Popular than they ever
EU officials had warned the bank could AT1 bonds are designed to absorb were for Deutsche Bank.

Companies / Sectors / People

Companies
3M......................................................................11
3i.......................................................................25
Actelion....................................................12,12
Aer Lingus.....................................................9
Air France......................................................9
Airbus.............................................................15
Akzo Nobel.......................................12,13,16
Alibaba.....................................................14,17
Alipay..............................................................17
Alphabet..................................................14,17
Amazon....................................................15,17
Antofagasta................................................25
Apple...............................................................17
AstraZeneca................................................13
BAE Systems..............................................15
BAIC.................................................................14
BH Macro.....................................................18
BMW................................................................14
BYD..................................................................14
Baidu..........................................................14,17
Banca Popolare di Vicenza.................4
Banco Popular...........................................13
Barclays..............................................12,14,18
Bats.................................................................24
BlackBerry...................................................14
Bosch..............................................................14
British Airways....................................1,9,18
Chery..............................................................14
Cisco...............................................................25
City National..............................................16
Continental..................................................14
DE Shaw........................................................12
Deere...............................................................13
Delphi.............................................................14
Delta..................................................................9
Dow Chemical............................................11
easyJet.............................................................9
Elliott Advisors..........................................13
Elliott Management................................12
Facebook.................................................14,17
Farallon Capital.........................................12
FireEye...........................................................25
First Merchant Bank..............................18
FirstGroup..............................................18,25
Ford.................................................................14
GMO................................................................26
General Electric....................................11,15
General Motors...................................14,14
Glencore.......................................................24
Goldman Sachs..................................14,24
Good Technology....................................14
Google.......................................................14,17
HP Enterprise...........................................25
Halliburton...................................................12
Helmerich & Payne................................12
Hyundai Motor.........................................14
IBM...................................................................25
IEX...................................................................24
Ilva......................................................................4
Inmarsat..................................................14,25
Intelsat.....................................................14,25
International Airlines Group...............9
JD.com............................................................17
JPMorgan Chase......................................14
Johnson & Johnson...............................12
Johnson Matthey....................................18
Kraft Heinz.............................................12,13
Laidlaw..........................................................18
Lufthansa.......................................................9
MTR.................................................................18
Marks and Spencer...............................25
Mead Johnson...........................................12
Microsoft.......................................................14
Mirvac.............................................................12
Monsanto......................................................13
Monte dei Paschi di Siena ...........4,10
Moodys.........................................................14
NXP..................................................................12
Nasdaq..........................................................24
National Grid.............................................25
Netflix.............................................................17
New York Stock Exchange...............24
Nokia.................................................................4
Norwegian Air Shuttle...........................9
Och-Ziff.........................................................12
OneWeb.........................................................14
PDVSA...........................................................24
PPG Industries................................12,13,16
Palo Alto Networks...............................25
Pershing Square.......................................18
Pfizer...............................................................13
Pimco..............................................................13
Popular...........................................................13
Qualcomm....................................................12
Reckitt Benckiser.....................................12
Rio Tinto......................................................24
Rolls-Royce..................................................15
Rosneft.............................................................7
Royal Bank of Canada....................14,16
Rural/Metro.................................................14
Ryanair.............................................................9
Safran..............................................................15
SoftBank.................................................14,25
Stagecoach..................................................18
Standard Chartered.........................18,25
Standard and Poors.............................14
Syngenta.......................................................13
T Rowe Price.............................................12
Tencent....................................................14,17
Tesla................................................................14
Third Point Offshore.............................18
Toronto-Dominion..................................16
Twitter............................................................17
Unilever....................................................12,13
Veneto Banca..............................................4
Walmart.........................................................15
Weibo..............................................................17
Wirtgen..........................................................13
Sectors
Aerospace & Defence...........................15
Airlines.....................................................1,9,18
Automobiles...............................................14
Banks.......................................10,12,14,16,24
Basic Resources.......................................26
Chemicals................................................12,18
Construction...............................................13
Financial Services.............12,14,16,18,26
Financials...........................................12,14,18
Food & Beverage....................................26
Industrial Goods......................11,13,16,24
Industrials...........................................11,12,15
Media............................................................7,17
Mining............................................................24
Oil & Gas.............................................7,12,24
Pharmaceuticals.....................................2,6
Property........................................................12
Retail..........................................................15,17
Retail & Consumer..................................15
Technology...................................11,12,14,17
Transport......................................................18
People
Ackman, Bill................................................18
Bchner, Ton..............................................13
Carney, Mark..............................................18
Chen, John..................................................14
Cruz, Alex.......................................................9
Degenhart, Elmar....................................14
East, Warren...............................................15
Immelt, Jeff..................................................11
Katsuyama, Brad.....................................24
Liveris, Andrew..........................................11
Lore, Marc....................................................15
Ma, Jack........................................................17
Ma, Pony.......................................................17
MacLeod, Robert.....................................18
McGarry, Michael.....................................13
McKay, Dave...............................................16
Morelli, Marco..............................................4
Mosley, Mike...............................................15
OToole, Tim...............................................18
Rishton, John.............................................15
Staley, Jes...............................................12,18
Thulin, Inge..................................................11
Tomlinson, Steffan.................................25
Walsh, Willie..................................................9
Yiannas, Frank...........................................15

The Financial Times Limited 2017 Week 22

14 FINANCIAL TIMES Friday 2 June 2017

COMPANIES
INSIDE BUSINESS
Financials
TECHNOLOGY

Brussels slaps 1.2m fine on Moodys Richard

Watchdog points to
negligent breaches of
rating agency rules
NICHOLAS MEGAW AND CHLOE CORNISH
The EUs markets watchdog has fined
Moodys 1.24m for failing to explain
publicly how it made a series of ratings
decisions about the financial health of
global institutions.
between June 2011 and December 2013.
Its a very important message, said
Nick Bayley, managing director for reg-
ulatory consulting at Duff & Phelps, a
consultancy.
A million pounds in the context of a
firm the size of Moodys is neither here
nor there, but it shows that [the regula-
tor] is willing to take public enforce-
ment action.
The ratings related to nine suprana-
tional entities including the European
Waters
dence, it is essential that high standards There was a ings and is pleased that this matter is
of transparency are maintained and closed.
strong feeling
enforced.
A Moodys report can have a very sig-
nificant impact on financial markets,
after the
The rating agency, which has the
second-largest market share in the EU
after Standard and Poors, stressed the
China on track to
financial
explained Salim Nathoo, a partner in
structured finance at law firm Allen & crisis that the criticisms did not relate to the quality
of our ratings or the supranational
cash in on the rise of
rating
Overy.
There was a strong feeling after the
financial crisis that the rating agencies
agencies got it
methodology itself, and said Esma had
recognised that Moodys took steps in
2013 to ensure that similar infringe-
machine learning
got it wrong, said Mr Nathoo. There wrong ments did not occur in the future.
was an overdependence on the agencies Salim Nathoo, Regulation of rating agencies climbed

It is only the third fine issued by the
European Securities and Markets
Authority in the six years since it took
on responsibility for the multinational
credit ratings industry after the finan-
cial crisis, and its first for transparency
failures.
Moodys German arm was fined
750,000 and its UK arm 490,000 for
negligent breaches of the credit rating
agencies regulation for 19 ratings issued
Technology
Investment Bank, the European Stabil-
ity Mechanism, the EU and the East
African Development Bank.
Esma said Moodys had failed to give
comprehensive descriptions of the
methodology underpinning its ratings
when announcing the decisions.
The Paris-based watchdog said:
Given the role of credit rating agencies
and ratings in financial markets, and
their impact on investor trust and confi-
and their methodologies . . . people
werent looking into or understanding
those assumptions properly.
Esma would not detail the exact
ratings that violated regulations, but did
say Moodys German business received
a higher fine for committing most of the
infringements, releasing 16 of the 19
offending ratings.
Moodys can appeal but the company
said that it acknowledges Esmas find-
Allen & Overy the political agenda after 2008 because
of the industrys perceived failure to
spot structural problems in the banking
system that led to the financial crisis.
To improve oversight of the sector,
Esma was given direct responsibility for
supervising rating agencies in 2011,
becoming the first pan-EU body to have
direct supervision of financial institu-
tions as opposed to working through
national regulators.
S
ome types of technology seem perfectly
designed for fast followers. These competitors
may not be on the leading edge of a new idea but
can react fast enough to stake out a large part of
the new market for themselves. The rise of
machine learning looks like one such innovation and
China has positioned itself to become the fast follower to
beat in this defining technology of the AI revolution.
Just two or three years ago, this still looked like the nar-
rowest of fields. The most advanced form of the art, called
deep learning, emanated from work at just three North
American universities. The people behind those break-
throughs decamped to jobs at places such as Google and
Facebook. Upstarts such as DeepMind in London (now
part of Google) and OpenAI in San Francisco became cen-
tres for some of the most advanced research.

Baidu forges self-driving car alliances with German suppliers
EMILY FENG BEIJING
PATRICK MCGEE FRANKFURT
Chinese internet heavy hitter Baidu
has finalised its first partnerships with
overseas companies on self-driving car
systems, as it intensifies efforts in one
of the hottest areas of technology
development.
Yesterday, Baidu announced a collabo-
ration on driverless vehicle technology
with Bosch, a leading automobile com-
ponent maker, having on Wednesday
outlined a similar alliance with Conti-
nental, another car parts manufacturer.
The focus on self-driving vehicles is
pitting Baidu against other leading
internet companies, including Alpha-
bet, as well as established carmakers
such as Ford and General Motors.
Baidus announcements with Bosch
and Continental came as Chinese pre-
mier Li Keqiang visited Germany for
talks with Chancellor Angela Merkel
and other EU leaders.
China is the worlds largest car mar-
ket, and Baidu said that under its agree-
ments with the two German companies
it will explore and practise business
models, accelerate the commercialisa-
tion of certain technologies, and provide
comprehensive and reliable system
solutions to smart transportation with
automated driving at the core.
Baidu already has partnerships with
Chinese carmakers BYD, Chery
and BAIC, which provide the vehicles it
uses to test its technology at a site in the
ancient Chinese river town of Wuzhen.
The deals with Bosch and Continental
suggest Baidus work is advancing, by
identifying hardware suppliers to com-
plement its strengths in software.
At Aprils Shanghai car show,
Baidu unveiled its Apollo platform for
self-driving cars, which it described as
an open, complete and reliable soft-
ware platform for its partners in the
automotive and autonomous driving
industry. If successful, Apollo would
allow Baidu to become the auto equiva-
lent of Googles Android software for
smartphones.
Dirk Hoheisel, a member of Boschs
management board with responsibility
for automotive systems integration,
said the company was pleased to co-
operate with Baidu.
Combining the know-how of a high-
tech internet corporation with our
expertise as the worlds biggest automo-
tive supplier, the alliance will promote
the development of smart mobility in
China, he added.
Elmar Degenhart, Continental chief
executive, said the groups collaboration
with Baidu would take intelligent
mobility an important step further.
Baidu and Continental will explore
collaboration on sensor systems and
Baidu has invested heavily in early-stage AI projects, but it has had some setbacks in its pursuit of self-driving car technology Getty Images
Sparks fly Hyundai Motor has announced plans to
Hyundai launch a long-range electric vehicle next
year as it tries to make inroads into
Motor markets in the US, China and Europe.
pushes Analysts say the worlds fifth-largest
plans for carmaker has lagged behind in the field
electric of green car technology. They are
vehicle belatedly trying to catch up with
overseas rivals, said Lee Hang-koo, a
researcher at the Korea Institute for
Industrial Economics & Trade.
The development comes amid a
broader downturn in business for South
Koreas largest carmaker, with May sales
figures released yesterday showing a 14
per cent year-on-year decline.
Hyundai already produces the
medium-range Ioniq EV, but consumers
are increasingly demanding greater
distances from electric vehicles.
Hyundai denied it lacked
competitiveness, saying it was aiming
to develop a segment-leading driving
range with the new model, adding:
The Ioniq is the worlds first model . . .
that offers three electrified versions
[and] was recently recognised as the
most fuel-efficient vehicle by the EPA
[Environmental Protection Agency] in
the US.
Choi Woo-suk, a senior environmental
technology official at Hyundai, said the
long-range model would be released in
the first half of next year.
However, the company has since
denied reports that the vehicle would
be able to drive 390km on a single
battery charge, meaning it would still
trail competitors, such as Teslas Model
S and General Motors Bolt EV.
Tesla earlier this year opened its first
showrooms in South Korea to a
rapturous reception and is expected to
make its first deliveries this month.
The South Korean unit of General
Motors also launched a long-range
vehicle in the east Asian nation in
March, with the first shipment of the
Bolt selling out within hours.
There are already good electric
vehicles like GMs Bolt and Teslas
models sold in the domestic market and
it will be difficult for Hyundai to slash
the price of its new model given the
high manufacturing cost, said Mr Lee.
Meanwhile, the market for electric
vehicles in South Korea is showing signs
of life. In the first four months of the
year, the country sold about 3,200
electric vehicles a more than 600 per
cent rise from 454 in the same period
last year, the Korea Automobile
Manufacturers Association says.
Bryan Harris and Song Jung-a
software for partially and fully self-driv-
ing cars, including applications for the
Apollo platform.
But Baidu is somewhat late in secur-
ing partnerships with component sup-
pliers. For example, Google has alliances
with Bosch and Continental, as well as
Delphi, the US car component maker.
Baidu has invested heavily in early-
stage artificial intelligence projects, but
it has experienced some setbacks in its
pursuit of self-driving car technology.
In March, Andrew Ng, Baidus chief
scientist and a leading AI expert, left the
company. Last November, Baidu and
BMW abruptly ended a driverless car
partnership.
In terms of self-driving cars, Baidu
has hit a number of challenges and is
realising that it needs to partner or con-
nect with many more established global
players in the auto industry and self-
driving technology industry to really get
past those challenges, said Mark Nat-
kin, of Marbridge Consulting.
However, Thomas Glendinning, ana-
lyst at BMI Research, said Baidu
appeared to be pulling together a com-
prehensive self-driving car system.
With autonomy, the real end game is
to provide a sort of end-to-end product
that a carmaker can really just take and
drop it straight into a car without much
tweaking, he added.
But now the basic techniques of machine learning
algorithms that become smarter as they are trained on
large amounts of data are well understood. And it turns
out that this is a general purpose technology that can be
applied to almost any problem.
Thanks to open source software, many of the tools to
build advanced AI systems are generally available. Last
year, for instance, two engineers with no previous knowl-
edge of deep learning won a public competition to devise
an algorithm that diagnoses heart disease. They did it by
turning to GitHub, an online repository of open source
code that has become the toolbox for developers looking to
extend their personal repertoire.
Googles Tensor Flow along with similar machine
learning frameworks developed by other tech companies
has also been made freely available, opening up tools
that were developed to help the search companys own
engineers apply the technology.
The open nature of much AI research is another factor
that has made it easier for fast followers. DeepMinds pub-
lication a year ago of a research paper about AlphaGo, the
system that last month beat Chinas world champion Go
player, is said to have sparked a flurry of copycats in China,
where Alibaba, Tencent and Baidu are leading a commer-
cial race to catch up.
This ease of emulation raises a particular worry for the
guardians of US national security. If robotic systems repre-
sent the future of warfare, and AI provides the brains, then
the free flow of code and key research breakthroughs sug-
gest it will be hard to main-
tain national superiority.
In applying machine
This ease of
learning, China is also rush- emulation raises
ing to mobilise a large new
workforce. Google may be
a worry for the
putting its engineers through guardians of US
some degree of machine
learning training and univer-
national security
sities such as Stanford, in Sil-
icon Valley, have seen a jump in demand for courses on the
technique.
But those efforts pale in comparison with the millions of
machine learning experts that China could soon produce
as it turns its attention to this key technology, says Kai-fu
Lee, an AI expert who once headed Microsoft and Googles
operations in the country.
As Mr Lee puts it: The days when America had undis-
putable, uncopyable, inimitable leadership in technolo-
gies are gone, at least with respect to computer science.
There are other reasons why China looks well-placed to
capitalise on machine learning. Application of the technol-
ogy depends on the availability of large data sets indeed,
many in the field argue that the ultimate competitive
advantage will come not from having the best algorithms,
but from access to the best data to train the AI systems.
If so, then Chinas vast markets, along with the emer-
gence of a group of internet leaders with a wide range of
digital activity, should provide plenty of raw material to
fuel the rise of intelligent systems.
Many Western observers also claim that looser regula-
tion of data privacy could well give Chinas AI companies
an advantage, leaving them freer to put data to work.
The development of AI in China is also less likely to be
slowed by the sort of ethical and moral concerns that loom
in the US, says Mr Lee. While driverless cars are running
into regulatory issues in the US, Chinas bureaucrats may
find it easier to resolve the trade-off between individual
road fatalities caused by autonomous vehicles and overall
improvements in road safety.
The most advanced AI research may still emanate from
the west. But China is well positioned for the commercial
free-for-all that has broken out as the technology is widely
applied.
richard.waters@ft.com

Banks Technology

JPMorgan settles 2015 BlackBerry sale dispute
SUJEET INDAP NEW YORK
JPMorgan Chase has reached a $35m
deal with shareholders of the former
software unicorn Good Technology, to
settle conflict of interest claims over
Goods $425m sale to BlackBerry.
Good had been valued at more than
$1bn in the months before the Black-
Berry transaction but was sold hastily
because of a cash crunch that developed
over the summer of 2015. Some share-
holders sued JPMorgan, alleging it
pushed Good into a sale because it
wanted to win future investment bank-
ing business from BlackBerry.
Common shareholders, mostly
employees of Good, received less than
50 cents per share after Good stock had
been valued at more than $3 per share
weeks earlier. JPMorgan did not
respond to requests for comment.
The case had been closely watched
both on Wall Street and in Silicon Valley.
Investment bankers have faced a series
of large judgments and settlements in
recent years over accusations of provid-
ing self-interested M&A advice.
In 2015, the Delaware Supreme Court
made a near-$100m award against
Royal Bank of Canada, which was found
to have steered the sale of ambulance
company Rural/Metro to a preferred
bidder in the hope of securing financing
fees. Goldman Sachs and Barclays also
each paid tens of millions in recent years
over charges of tainted deal work.
Plaintiff shareholders had alleged
that JPMorgan had first concealed its
true feelings about a spring 2015 IPO for
Good. Later that summer, they allege
the firms technology bankers steered a
transaction towards BlackBerry.
After the deal was signed, Jennifer
Nason, JPMorgans global chair of tech-
nology, media, and telecom banking,
wrote to colleague Curt Sigfstead: Fan-
tastic result! Glad bberry didnt use [a
banker]. Curt we should have Jamie
[Dimon, JPMorgan chief executive] call/
email Chen, according to the lawsuit.
The venture capital firms behind
Good Oak Investment Partners,
Draper Fisher Jurvetson, and River-
wood Capital along with Good board
members, were also accused of wrong-
doing in approving the BlackBerry sale.
Blow to SoftBank as satellite tie-up plan collapses
NIC FILDES AND ROBERT SMITH
LONDON
Efforts by SoftBank to orchestrate con-
solidation in the space technology
industry suffered a setback yesterday
with the collapse of a proposed merger
between OneWeb and Intelsat, two sat-
ellite businesses, due to opposition
from bondholders.
The Japanese internet and telecoms
group revealed in February it would
invest $1.7bn under the plan for the
merger between OneWeb, a US satellite
start-up, and Intelsat, a Luxembourg-
based rival. But the deal in which Soft-
Bank expected to take a near 40 per
cent voting stake in the combined group
was conditional on Intelsats bond
investors accepting a debt swap under
which they would receive less than full
face value for their existing holdings.
The collapse of Softbanks satellite
plan comes only months after it out-
lined proposals for a $100bn technology
investment fund to be managed by the
Japanese company, and the completion
of its 24bn takeover of Arm Holdings,
the UK chip designer.
Intelsat, which is labouring under
large borrowings, said yesterday that
the debt exchange offer had been termi-
nated after minimum tender conditions
were not met. It added that it expected
SoftBank and OneWeb to exercise their
termination rights in relation to the pro-
posed merger with Intelsat today.
Stephen Spengler, chief executive of
Intelsat, said: There were many stake-
holders interests that needed to be sat-
isfied in this complex transaction. We
are disappointed that our bondholders
were unwilling to accept the terms of the
exchange offers presented over the
course of this process.
Alok Sama, chief financial officer of
SoftBank, said: While we are disap-
pointed Intelsat was not able to achieve
an acceptable agreement with its bond-
holders, we continue to be enthusiastic
about OneWebs standalone prospects,
and its potential to disrupt the satellite
industry and communications business
generally. SoftBank will continue to
work with the OneWeb management
team to seek alternative paths to accel-
erate its strategy.
Friday 2 June 2017
Rolls-Royce plays Mr Nice Guy with suppliers
Effort to erase perceptions of arrogant approach amid 71bn backlog challenge after decade of booming orders
PEGGY HOLLINGER
Anshun, in Chinas Guizhou province, is
known for two things: proximity to the
Huangguoshu Waterfall, a magnet for
tourists; and the hefty financial incen-
tives that attract aerospace suppliers to
the citys high-tech civil aviation park.
Last month Rolls-Royce executives
flew into Anshun to meet some of the
Chinese companies that have benefited
from subsidies of 60-80 per cent.
It was all very warm and friendly,
says one person who was there. It ech-
oed a meeting of 100 suppliers in Singa-
pore two months earlier. It was very
positive, says another who was there.
The conferences seem a far cry from
some of the gatherings in the UK supply
chain, where Rolls-Royce spends some
750m a year with 300 direct suppliers
from quoted multinationals to pri-
vate, family-run businesses.
In 2013, UK suppliers were sum-
moned to a less scenic venue a hotel
near Heathrow to be told that if they
wanted to continue supplying the com-
pany, they would have to accept more
onerous terms and conditions.
The question is whether that more
brutal approach has been relegated to
the past as Rolls-Royce faces one of its
biggest operational challenges.
After almost a decade of booming
engine orders, the company must
deliver on its bulging 71bn backlog.
Between 2014 and 2019 Rolls-Royce will
have doubled engine production from
300 to 600 a year, the biggest ramp-up
since the war. Success will depend on
having a robust and resilient supply
chain, one that is prepared to invest in
efficiency rather than being resentful
about the demands of a big customer.
Mike Mosley, Roll-Royces director of
operations for civil aerospace, admits
that the company has in the past been
perceived by its UK supply chain as
arrogant. Now that relationship is
changing. We listen more. When a sup-
plier says I want to change something
as soon as we stop laughing hysterically
we now try to embrace those ideas of
change, because it is clearly giving the
supplier benefit and anything that gives
him benefit gives us benefit.
The change is happening even as
Rolls-Royce pushes ahead with a plan to
reduce reliance on the UK. Its procure-
ment spend outside the country is
expected to double to 1bn by 2020. But
given stringent certification procedures
required in the industry, Rolls-Royce is
likely to remain heavily dependent on
the UK, so it has to focus on getting the
best to meet its challenges.
We get back from suppliers the mir-
ror that we cast ourselves, says Mr Mos-
ley. An arrogant supply base that wont
invest is not what Rolls-Royce wants.
Improving its relationship with sup-
pliers is even more important since the
restructuring under Warren East, chief
executive since 2015, and his predeces-
sor John Rishton. Thousands of jobs
have been cut, including 25 per cent of
senior managers. It is part of Mr Easts
plan to close the 1bn gap in profitabil-
ity with rival General Electric as it
recovers from five profit warnings since
February 2014.
This restructuring has created a new
organisational structure, with a tight-
knit team reporting directly to Mr East.
The new leadership has cleared
obstacles that have enabled us to accel-
erate things, Mr Mosley says. The
removal of management levels has
given clarity on . . . areas I know I can
push on to get security of supply. I have
easier access to the board on issues I
believe need airing.
The pressure to develop new working
relationships with critical suppliers has
increased. Safran, the French engine
maker and GEs partner on single aisle
turbines, is looking to the UK to back up
its traditional supply chain and reduce
risk as it ramps up production rates. Its
Retail
Walmart uses store staff to deliver web orders
ANNA NICOLAOU
BENTONVILLE, ARKANSAS
Walmarts battle to catch up with Ama-
zon, which is pushing the boundaries of
drone delivery to expand its ecom-
merce leadership, has led the worlds
largest retailer to a lower-tech solution:
have store employees deliver online
orders to shoppers doorsteps.
With 4,700 stores across the US, and 90
per cent of Americans living within 10
miles of a Walmart outlet, it just makes
sense, Marc Lore, who leads Walmarts
ecommerce operation, told reporters on
the eve of its annual shareholders meet-
ing yesterday.
The retailer has been testing the
system in three stores for about
a month and has done hundreds of
Production ramp-up
A robust and resilient supply chain, one prepared to invest in efficiency, is seen as vital following a restructuring involving thousands of job cuts Bloomberg
UK aerospace contractors
Total spend (bn)
Rest of the world
UK
2011 12
Sources: Department for Business, Innovation and Skills; Rolls-Royce
Expertise on tap
Scheme offers training,
reviews and investment
Are you ready to go from good to
great? That is the question posed
by Sharing in Growth, an
organisation instigated by Rolls-
Royce to help companies in its UK
supply chain to deliver on its ever
higher ambitions.
Since then, SIG has broken away
from its founder to become a
government-funded initiative
aimed at raising the capability of
UK aerospace suppliers and giving
them the skills and focus to work
with the biggest customers.
SIG is about how do you
adapt to what these large
companies demands are, about
being globally competitive and
delivering on quality and cost, says
Andy Page, a former Rolls-Royce
supply chain executive who quit his
day job to take on the task of
coaching the UKs aerospace
supply chain.
The scheme is rigorous.
Companies have to commit to a
four-year programme of
investment, reviews and high-
intensity training for
management and staff, covering
everything from manufacturing
processes to accounting.
Many of the experts drafted in to
help those accepted are lent by
Rolls-Royce, as well as other big
aerospace customers.
deliveries, with most arriving within
a day.
Walmarts cut-throat battle with
Amazon in shipping has already
seen it test drones and other ways
to deliver products faster, but the
Bentonville-based retailer has focused
on integrating its brick-and-mortar
business with Walmart.com and
Jet.com, the ecommerce site Mr Lore
founded.
Amazon Prime customers in more
than 5,000 US cities can already receive
online orders within a day, and in some
locations within a few hours.
Walmart has overhauled its shipping
system to compete, offering free two-
day delivery for orders over $35 and in-
store pick-up of groceries and other
online orders.
FINANCIAL TIMES 15
COMPANIES
than access to financing, posed the big-
gest barrier to growth.
Companies dont feel they have long-
term security of business with custom-
ers, says James McMicking, chief strat-
egy officer of the Aerospace Technology
Institute.
But some believe the cultural trans-
formation Mr East is pushing internally
is starting to make a difference.
Our situation has markedly
improved, says the provider of a hard-
to-secure capability, who says the focus
on squeezing suppliers for price cuts
between 2011 and 2015 had soured rela-
tions. There used to be very good rela-
tionships, but they brought in some real
goons. Now they have brought back peo-
ple who had been pushed aside. They
are firing on all cylinders.
A small Midlands-based company
says that over the past year Rolls-Royce
has taken a longer-term view of its con-
tractual relationships.
They need to secure the capacity,
and to do that we have to invest. But to
get the investment we need the long-
term contract in place, it says. There
are green shoots of change.
Mr Mosley argues that the critics may
be those who know their days are num-
bered as the company looks to deal with
fewer groups, focusing on those with
leading positions in their markets.
Some suppliers have realised that to
stay with Rolls-Royce, you have to be
world-class, he says.
Spend by region, 2014 (bn) Demand for Roll-Royces engines (order book, bn) David Bailey of the North West Aero-
space Alliance, representing 240 aero-
60 10 80 space groups in the region, dismisses
Other some of the criticism of Rolls-Royce.
50 South and Central America 8
60 There are always two sides to any
Middle East and Africa story, he says. Someone might be
40 Asia 6
asked to hold stock because they have a
North America very poor delivery performance.
30 4 40
Europe (excluding UK)
UK Nevertheless, Mr Mosley is the first to
20 2 admit that there is more to do to shape
20 the supply chain as Rolls-Royce ramps
10 0 up production to record levels. We
0 Aero Engine Processes/ Systems/ Other 0 could always be quicker and more effi-
13 14 structures materials equipment 2012 13 14 15 16 cient. We can always continue to [take]
away some of the underlying frustra-
Top 10 suppliers only for prime and major tier one contractors tions. The race is far from finished.
contracts tend to be longer-term and
more flexible than Rolls-Royces, say
suppliers that have been approached
recently, and the risk is that such terms
might tempt away important capacity.
Our UK supply base is increasing
because of our policy of double sourcing
all parts, Safran says.
The question is whether UK suppliers
are feeling the changes that Mr Mosley is
implementing. The FT has interviewed
more than a dozen companies and aero-
space bodies. The answers are mixed.
Many complain of long payment
delays and onerous, shorter-term con-
tracts that contain clauses allowing
Rolls-Royce to cancel without penalty
after a short period. Suppliers say Rolls-
Royces terms, which often demand high
levels of inventory and crippling liabil-
ity insurance, often leave them either
unable to invest or wary of doing so.
Clauses that in the past were rarely
enforced such as damages for missing
targets are being followed to the letter.
It is a privilege to supply Rolls-
Royce, says the executive of a small,
family-run company. But nothing has
changed.
There is only one company that
doesnt pay me on time, says one who
has worked with the engine-maker for
many years. That is Rolls-Royce.
They are just as prescriptive as ever,
says another.
Onerous terms are not unique to
Rolls-Royce. A government report on
the UK aerospace supply chain which
serves Airbus and BAE Systems among
others found that limited duration
contracts and complex procurement
processes were among its weaknesses.
It concluded that a lack of trust
between supplier and customer, rather
Walmart also said yesterday it was
ramping up efforts to use Blockchain
technology to digitise food.
The company recently wrapped a
trial programme with IBM, using the
technology to track food across its sup-
ply chain to help prevent disease out-
breaks and improve shelf life.
Through Blockchain, Walmart can
trace a package of sliced mango back to
the original farm in South America in
two seconds, compared to a week under
current systems, tests showed.
Walmart says it is holding conversa-
tions with big influential food stake-
holders and other large retailers to roll
out the technology.
Our intentions are to scale it, says
Frank Yiannas, Walmarts vice-presi-
dent of food safety.
16 FINANCIAL TIMES Friday 2 June 2017

COMPANIES

Banks

Canada lender freezes deal plans south of the border

RBC move prompted
by doubts over pace of
reform under Trump
BEN MCLANNAHAN TORONTO
Canadas second-largest banking group
has put a freeze on acquisitions in the
US, saying that the political climate
under Donald Trump is making deals
south of the border a struggle.
Dave McKay, president and chief
executive of Royal Bank of Canada,
made a foray into the US two years ago
with the $5.4bn acquisition of City
National, a Los Angeles bank that once
lent Frank Sinatra the cash to pay a ran-
som for his kidnapped son. Mr McKay
wants to add to that, particularly in
Washington, New York and Texas.
But he told the Financial Times he
was reluctant to make a case for an
acquisition to the banks board, given
doubts over the pace of economic and
fiscal reforms under the new president.
An early setback over healthcare has
cast doubt over Mr Trumps ability to
implement other big ideas, such as an
infrastructure spending plan.
Mr McKay noted that the success of
such initiatives appeared to be embed-
ded in banks share prices, which had
mostly held on to the gains made after
Mr Trumps victory in November. The
KBW Nasdaq Banks Index is flat this
year, having climbed about 25 per cent
in the final few weeks of 2016.
How do you value an acquisition
right now? Man, I struggle, he said. If
[share prices] have built tax reform in, if
theyve built higher interest rates in, if
theyve built economic growth in, and
youd expect to pay a premium how
do you get comfortable with that risk?
The answer is to focus on organic
growth, and save your capital.
RBCs push into the US came amid
warnings from credit rating agencies
that Canadas biggest banks were too
heavily geared to their home market.
Last month Moodys downgraded sev-
eral, citing exposure to high home prices
and household debt.
When RBC bought City National in
2015 it was the biggest US banking deal
for more than three years. On a second-
quarter earnings call with analysts last
week, Mr McKay cited double-digit
growth in loans and deposits at the unit,
and a 12 per cent year-on-year rise in net
income to $57m, as evidence of the
deals success. He described the US as
the banks second home market.
RBC had C$1.2tn ($892bn) of assets at
the end of April, a whisker behind
Toronto-Dominion, with C$1.25tn.
For now, the chief says RBC will con-
tinue to run playbooks of potential
acquisitions, almost all of them in the
US. But he says he will hold off from tak-
ing action until there is greater clarity
over Mr Trumps reform agenda.
Six months from now, you might
have a much greater insight, he said.
But why pay a full price for those varia-
bles now? he added. We have the lux-
ury of time and capital on our side.

Industrial goods. Takeover bout

Ex-wrestler McGarry fails to make Akzo submit

PPG chief outdone in bitter Akzo Nobel
26.9bn transatlantic Share price ()

contest for Dulux owner 80

75
MICHAEL POOLER AND ARASH MASSOUDI

As a former high-school wrestler, 70

Michael McGarry knows a thing or two
about pinning down opponents. 65
Yet for all his muscular efforts, the
chief executive of PPG Industries, the 60
US paints and coatings group, was out-
manoeuvred by Dutch rival Akzo Nobel 55
in their 26.9bn takeover tussle. Jan 2017 May
PPG has been forced to relinquish its
pursuit of the owner of the Dulux brand Source: Thomson Reuters Datastream
and cannot return for at least six
months under Dutch takeover rules
after deciding against taking its third
offer directly to Akzo shareholders.
The decision marks an anticlimactic
denouement to what had become a bit-
ter transatlantic battle over one of
Europes oldest companies, which has
roots dating back to 1792.
Akzos rejection of three unsolicited
cash-and-stock bids since March had set
up the possibility of PPG launching a
hostile takeover approach.
The retreat leaves PPG bereft of a A worker adds blue pigment to a new
large acquisition target it had long cov- batch of paint at the Akzo factory in
eted and means Mr McGarry must now Sassenheim in Holland
find other ways to expand the Pitts- Jock Fistick/Bloomberg

burgh-based company.
Although it came during a spree of
consolidation that is reshaping both the
$130bn global paints and coatings mar-
ket and the wider chemicals industry,
the timing of Mr McGarrys approach
appeared flawed.
The first bid, delivered during an
informal meeting with his counterpart
Ton Buchner, came less than two weeks
before elections in the Netherlands.
A political backlash against the pro-
posed deal ensued, as tweets sent out by
Akzo with the hashtag #DutchPride
tapped into a growing sentiment against
foreign takeovers.
But behind the scenes PPG was on a
charm offensive.
In the days and weeks that followed,
several of Akzos largest investors went
The US public to urge the company to the nego-
tiating table, including its single largest
paints shareholder, Causeway Capital. At one
company point Mr McGarry even claimed that
nearly all of Akzos top-20 shareholders
cannot were in favour of talks.
return for Playing the role of agitator was the
activist hedge fund Elliott, known for its
at least six aggressive campaigns to influence cor-
months porate boardrooms. It accumulated a
stake of more than 3 per cent and began
under to throw its weight around.
Dutch rules It called for a special shareholder
meeting to oust Akzos chairman,
Antony Burgmans, seen as an obstacle
to takeover talks.
Ultimately Elliott was thwarted: a
Dutch business court this week threw
out its claim to force Akzo to hold the
extraordinary general meeting. A
request by PPG for an extension to the
bid deadline also fell on deaf ears.
PPGs move on Akzo fell squarely into
its transition from a diversified indus-
trial conglomerate into a more focused
company, which along with coatings
and paints also supplies sealants for cars
and aircraft.
Mr McGarry, a company lifer who has
risen through the ranks of PPG since
taking his first job in 1981, has built a
reputation for integrating a number of
acquisitions that have helped push sales
generated by paints and coatings from
just over half to 97 per cent since 2005.
They include the $2.3bn takeover of
Mexicos Comex in 2014 and the $3.2bn
purchase of Dutch coatings maker
SigmaKalon in 2008, PPGs largest
acquisition to date.
Failure to land Akzo may not be fatal
for the chief executive. Before PPGs
withdrawal, one person briefed on the
matter said the chief executive had the
backing of the companys board.
With anaemic rates of growth
throughout much of the wider chemi-
cals sector, PPGs logic for the combina-
tion appeared soundly rooted in
extracting benefits of scale.
We are experts at liquid coatings
technology, they [Akzo Nobel] have a
very strong powder coatings technology
they are the leader in that space, Mr
McGarry told the FT last week. Most
paint customers require both liquid and
powder. So when you go to a customer
96.75 youll be able to provide a wide range of
coatings to meet their requirements.
PPGs offer per
share for Akzo And as with many big-ticket mergers
in the chemicals industry, cost-cutting
74.81 was a key rationale: PPG outlined poten-
Current price
tial annual savings of $750m.
of Akzo stock So important was the deal to PPG that
it raised its offer to 96.75 per share a
premium of 50 per cent to Akzos undis-
turbed share price. The stock is cur-
rently trading around 74.81.
With its failure to tie up a deal, PPG
may face threats from competitors such
as Axalta, spun out of Dupont, which is
encroaching on its mainstay of automo-
tive coatings, say analysts.
Mr McGarry may now find he is on the
defensive rather than attack.
See Lex

Legal Notices Financial services

US pushes for greater audit disclosure

Notice to Advertisers
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may be monitored.
Acceptance of any advertisement for publication will
be subject to the then current terms and conditions of
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+44 (0)20 7873 3000, or viewed at
www.FT.com/advertising
CHLOE CORNISH
The US auditing watchdog is pushing
through new rules requiring auditors
to reveal details of their investigations
into public companies accounts, after
a drawn-out fight with business lobbies
over the additional disclosure.
The new standard, which has taken six
years to negotiate, was approved by the
Public Company Accounting Oversight
Board at its meeting yesterday.
But it remains to be ratified by the
Securities and Exchange Commission at
a time when the Trump administration
has been calling for a loosening of regu-
latory requirements.
At present, US auditors simply state
whether or not a companys financial
statementsgiveafairviewofitsaccounts.
The new standard crafted by the
PCAOB would require auditors to pro-
vide further information to investors
and the public whenever they felt the
need to communicate with a companys
audit committee the board members
who oversee the accounts about diffi-
cult accounting questions.
These critical audit matters would
relate to accounts or disclosures that
would make a material difference to
financial statements, and involved the
auditor making particularly subjective
or complicated judgments.
James Doty, PCAOB chairman, told
the Financial Times that the body was
responding to investor concerns and
increased disclosure would bolster pub-
lic confidence in business. We want
more information in public hands about
what the auditor saw, he said.
Mr Doty said the US push was inspired
by experiences in the UK and other
European countries with enhanced
audit reporting.
European auditors were creating
fresh and meaningful disclosure
through the extended reports, he said.
Some investors welcomed the US
move.
We would get, in the largest capital
market in the world, auditor reports
that are worth reading, said Paul Lee,
head of corporate governance at Aber-
deen Asset Management, who worked
toward more detailed audit reports for
UK-listed companies.
But the US Chamber of Commerce,
the main business lobby, has strongly
opposed the new standard, calling it a
giant experiment in a formal com-
James Doty, PCAOB chairman, says
move will bolster public confidence
ment letter and questioning whether
the costs outweighed the benefits.
Jim Peterson, who studies the Big Four
accounting firms and was former senior
counsel at the collapsed auditor Arthur
Andersen, said he believed auditors
would be fearful of litigation and were
unlikely to provide the level of detail
investors were seeking.
What youre going to have is a box-
ticking exercise, he warned.
The wording of a typical US auditors
report has changed little since the
1940s.
But, as part of the new standard, the
PCAOB is seeking to add new language
highlighting the importance of auditor
independence and forcing auditors to
disclose how long they have been
inspecting a companys accounts.
The new report would also state that
auditors should be able to identify
accounting misstatements made due to
error or fraud.
There are no mandatory limits on
audit tenure in the US, unlike Europe
where new rules mean companies must
tender their audit every decade and
rotate firms every 20 years.
The PCAOB has been looking into
audit reports since the 2008 global
financial crisis, when auditors came
under fire for having given a clean bill of
health to companies that failed just
months later.
Mr Doty said that he hoped the
expanded reports would help to boost
quality. We think that transparency in
the audit report about what the auditor
did and saw that was complex or diffi-
cult . . . will yield more attention to
those areas during the audit, he said.
Friday 2 June 2017 FINANCIAL TIMES 17

COMPANIES

Technology

Chinas big tech trio look to de-Faang US rivals

Baidu, Alibaba and On the march
Tencent beat estimates
and spark stock rally
LOUISE LUCAS AND PETER WELLS
HONG KONG

Facebook, Apple, Amazon, Netflix and

Google (Faang) are fuelling a US stock
market rally but so are Chinas tech
groups.
Baidu, Alibaba and Tencent, or Bat,
along with ecommerce group JD.com
and microblogging-turned-livestream-
ing platform Weibo smashed analysts
earnings estimates in their quarterly
reports.
They have also unleashed a Faang-
beating stock market rally.
These are the important facts about
this clutch of tech companies.
They are big
Tencent and Alibaba feature among the
10 biggest companies by market capital-
isation, and the founders Tencents
Pony Ma and Alibabas Jack Ma are
among the richest.
Tencents shares, up 43.6 per cent
year to date and contributing 25 per cent
of the point gains on Hong Kongs Hang
Seng index, have outperformed Face-
books 31.7 per cent rise.
Baidu is something of the poor rela-
tion, but is worth $64.7bn. Its shares
have lagged behind most peers: its core
search engine offers fewer reasons,
other than shopping or chatting, for
users to linger on the site, and it has had FT montage/Bloomberg/Reuters

a number of clashes with regulators Advertising so far is modest suggest-

over advertising. ing to analysts more scope for monetisa-
Its artificial intelligence endeavours, Worlds biggest stocks by market capitalisation Monthly active users tion in the future.
in which it had been ahead, have been $bn Quarterly average (million)
hit by high-profile departures. They are pursuing new revenue
0 200 400 600 800 380 streams
Some are starting to trump Apple Weibo If Amazon provides pointers, it is to
better-known US peers Alphabet 360
watch the others. Amazons AWS
Weibo, which has benefited from a Microsoft cloud service began as a footnote; its
segue into livestreaming, eclipsed Twit- Amazon.com 340 $12bn annual revenues now make up
ter in terms of market capitalisation in Facebook Twitter almost 10 per cent of group sales.
February. Berkshire Hathaway 320 For Tencent, it is largely cloud and
It has more subscribers: 340m Johnson & Johnson payment. For Alibaba, whose cloud
monthly active users to Twitters 328m, ExxonMobil 300 business is big enough to merit its own
according to the latest quarterly Tencent line in its earnings, it is innovation ini-
reports. Data from iResearch show Alibaba 280 tiatives and others, which includes its
Weibos numbers of monthly active Q1 Q2 Q3 Q4 Q1 YunOS operating system and AutoNavi
users continuing to rise. 2016 17 mapping. Baidus others refers to sub-
Weibo makes money: a net profit of Source: Bloomberg Sources: Twitter; iResearch; Jefferies scription-based services.
$47m in the first quarter, the same
period in which Twitter lost $62m. There are risks
Cash to burn Focusing on new business lines Sceptics point out that success is easier
They are profitable and throw Operating profit margins (%) Others revenues (Rmb bn) for companies based in the most popu-
off cash lous market and protected from foreign
With the exception of JD.com, Chinas 50 8 competition. Google, Facebook and
tech groups operate more asset-lite Q1 2016 Q1 2017 Twitter have their services blocked in
models, throwing off cash to invest in 40 China.
6
new ventures, projects and tech. But Bat is increasingly playing on the
Alibaba generated Rmb68.1bn 30 same turf. Tencent has swiped a chunk
($10bn) of free cash flow in its last fiscal 4 of market share from Alibabas affiliate
year while Tencent generated 20 Alipay in mobile payments; JD.com is
Rmb58.05bn. spinning off its finance arm; and Baidu,
What attracts investors still more is 2 which like Alphabets Google has at its
10
where these revenues come from. core a search engine, has secured a
Unlike their US peers, Chinas tech par- 0 0 licence to offer financial services.
ticipants are not heavily reliant on Tencent Facebook Alibaba Amazon eBay Baidu Alphabet Tencent Alibaba* Baidu All are pursuing livestreaming, ratch-
advertising, instead charging subscriber * Innovation initiatives and others eting up the cost of content. None have
fees, merchant commission and for in- Source: Bloomberg Source: companies so far covered themselves in glory in
app purchases such as extras in games. overseas expansion.

Legal Notices
18
Dividend hopes taunt those huddling in the FirstGroup bus shelter
Oliver
Ralph
First comes the hope the smudge of
colour on the horizon suggesting that,
finally, the bus is coming. It lingers,
tantalising those waiting at the stop.
Then the disappointment. It turns
out to be a lorry.
Bus company shareholders not a
popular group among passengers
had a taste of that pain yesterday.
FirstGroup shares fell 5 per cent even
though full-year results beat City
forecasts. Among the reasons was the
absence of a dividend. FirstGroup has
not paid one since a 2013 rights issue.
The idea of a payout has been there,
on the horizon, tantalising investors.
Some analysts had pencilled one in for
the year just ended.
Although none appeared, there was
plenty of evidence that a payout
could be due. Cash generation
improved from 36m to 147m as the
Transport
FirstGroups
cautious outlook
rattles investors
Bus and rail operators
shares slip despite better
than expected results
NICHOLAS MEGAW AND
CAT RUTTER POOLEY
FirstGroup reported better than
expected full-year results yesterday but
shares sank as investors were unnerved
by the bus and rail operators cautious
outlook and failure to reinstate its
dividend.
Shares fell by as much as 10 per cent
as the company said it faced a mixed
trading environment in the year ahead,
although they pared some of the losses
as some investors digested the increase
in profits by more than a third.
Tim OToole, chief executive, admit-
ted that there was a lot more for First-
Group to do in the UK and said he was
looking at whether he should be concen-
trating in markets that had better
returns. The north of England is where
the business is under pressure, although
Mr OToole said he was not considering
pulling out of that region entirely.
The company has repeatedly warned
that economic uncertainty and cheaper
motoring costs have weighed on growth
in its UK business, but decent trading in
its North American operations has
helped to offset the domestic weakness.
It said it expected a similar pattern to
continue this year, noting that there were
opportunities for steady progress in the
North American divisions but continued
economicuncertaintyintheUK.
FirstGroups US businesses include
local public transport services, school
buses and Greyhound, the long-distance
Banks
Barclays agrees to sell Zimbabwe operations
MARTIN ARNOLD LONDON
JOSEPH COTTERILL JOHANNESBURG
Barclays has ended its 105-year
presence in Zimbabwe by agreeing to
sell its operations in the cash-starved
African country to First Merchant
Bank, a Malawi-listed lender.
The disposal, which is expected to be
announced as early as today, is being
contested by Barclays staff in Zimba-
bwe, who have appealed to the countrys
high court to block the transaction.
The board of Barclays Zimbabwean
operations is fighting the legal claim,
saying it is without merit, according to a
person briefed on the matter.
First Merchant Bank has stakes in Cap-
ital Bank in Mozambique and Botswana
and First Capital Bank in Zambia. But
thisisitsfirstinvestmentinZimbabwe.
US school bus business produced a
good performance.
The balance sheet looks healthier.
Net debt fell 9 per cent, and the ratio of
debt to earnings is within the target
range. The interest bill will fall further
over the next few years as expensive
debt rolls off. FirstGroup is paying
8 per cent on 300m of debt that falls
due next year.
It needs something to keep the
shareholders interested. They have
been happy enough of late the shares
are up a third over the past year,
despite yesterdays drop.
But there was little in the results to
set the pulse racing. The US is going
well, but the company cannot hire
enough drivers there. The UK bus
business is going through a sticky
patch. Margins in UK rail have been
rebased.
West Face Capital, a Canada-based
activist investor, has just appeared on
the shareholder register with a 5 per
cent stake.
FirstGroups competitors offer
decent payouts. Stagecoach and
Go-Ahead both offer dividend yields of
more than 5 per cent. If FirstGroup
bus service. In the UK, it operates the
Great Western and Transpennine
Express rail franchises, as well as run-
ning one of the largest bus operations.
FirstGroup has been working to
improve performance and turn round
its business for a number of years since
the difficult integration of Laidlaw, the
US bus business it bought in 2007.
Martin Brown, analyst at Shore, said:
It is now evident that this process is
delivering positive results, with figures
for all FirstGroups divisions except for
UK buses coming in ahead of expecta-
tions. But he added that it was disap-
pointing that the board had not yet rein-
stated the dividend, which was sus-
pended in May 2013 when the group
undertook a significant refinancing and
rights issue to bolster its balance sheet.
Revenues at the group slipped 0.5 per
cent on a constantcurrencybasis,butthe
weaker pound meant they were 8.3 per
cent higher than the previous year in
statutory terms, at 5.7bn. Reported
profit before tax rose 34.4 per cent to
153m. The companys preferred
adjusted measure of profit, which
excludes restructuring costs and certain
charges related to intangible asset amor-
tisation, came in at 207m, compared
withconsensusforecastsof196m.
Despite the difficulties in the UK,
FirstGroup has made a number of bids
to extend its UK train services, winning
the right to operate the South West
Trains franchise alongside Hong Kongs
MTR from August, after losing several
UK rail franchises in 2015.
Shares closed down 5 per cent to
142.3p after dropping to a low of 134.4p
at one point in early trade.
See Lombard
The agreement comes only a day after
Barclays said it had cut its stake in its
main African operation from 50 to 15
per cent, selling control of the Johannes-
burg-listed business, which has always
remained separate from the UK banks
Zimbabwe business.
The deal must be approved by local
regulators. Rasik Kantaria, a non-exec-
utive director of First Merchant Bank,
was also a director and large share-
holder of Crane Bank in Uganda, which
collapsed last year amid allegations of
irregular lending practices.
Barclays first established a presence
in Zimbabwe in 1912. It is selling its two-
thirds stake in Barclays Bank of Zimba-
bwe, which is listed in its home country
with a market capitalisation of $73m.
The deal means Standard Chartered is
the only western bank left in Zimbabwe,
FINANCIAL TIMES
UK COMPANIES
paid out a quarter of cash generated in
the year, its shares would yield just
over 2 per cent.
While that is well below the others, it
would at least give waiting
shareholders confidence that the
smudge of colour up the road is not a
mirage.
Square peg, round holes
Mission accomplished. Well, partly.
When hedge fund manager Bill
Ackman listed shares in his Pershing
Square closed-end fund in London last
month, he had two objectives: secure
inclusion in a benchmark index, and
narrow the discount to net asset value.
Objective one has been achieved,
writes Jonathan Eley. Pershing Square
will enter the FTSE 250 this month,
obliging index funds to own it. The
computers that run such entities are
indifferent to Mr Ackmans recent
troubles with Valeant. They own
whatever the index providers
computers tell them to.
That has not resolved objective two.
The London stock trades 17 per cent
Clean profits
Emissions
tech demand
lifts Johnson
Matthey
which is grappling with a severe dollar
shortage and political uncertainty over
Robert Mugabe, the 93-year-old presi-
dent, ahead of next years election.
Barclays Bank of Zimbabwe, which
has $476m of total assets and made
$10.9m of net profit last year, is a similar
size to First Merchant Bank, which has
$450m in assets and made $10m of
profit last year. Barclays will transfer the
banks 700 employees, 25 retail
branches and five corporate service cen-
tres in Zimbabwe to First Merchant
Bank. The UK bank will reduce its risk-
weighted assets by 292m.
The sale follows a decision to dispose
of most of Barclays Africa operations by
Jes Staley after he took over as chief 18
months ago. He was seeking to raise cap-
ital and refocus on US and UK markets.
See Lex
below the latest published NAV in
line with Amsterdam, where the shares
have traded since 2014.
Mr Ackman contends that his long-
term record merits a premium. But
feeder funds do not normally
command one. Ask BH Macro, which
will drop out of the 250 just as Pershing
Square enters it. Since floating in 2007,
BH has traded at an average discount
of 2.8 per cent. More recently that has
been wider.
It is still a lot less than either
Pershing or Third Point Offshore, a
feeder for Dan Loebs funds, whose
shares trade 19 per cent below NAV.
The difference is not down to
performance all three have trailed
the FTSE World index. BH buying back
almost half its shares at a small
discount and cutting management
fees by three-quarters may have more
to do with it. Something for Mr
Ackman to ponder.
Threadneedle braziers
Sitting in a committee room
pontificating about the rights and
Strong demand for high value
emissions control technology lifted
full-year revenues and profits at
Johnson Matthey, the FTSE 100
chemicals group.
Even though European consumers
moved away from the diesel cars that
make up the bulk of Johnson Mattheys
vehicle catalyst sales, revenues
jumped 12 per cent to 12bn and
pre-tax profits rose 19 per cent to
461m in the year to March 31.
The strong performance was in part
thanks to a weak pound. With
currency effects stripped out,
underlying sales increased 3 per cent
and pre-tax profits 1 per cent.
Airlines
Warning on BA pension battle
JOSEPHINE CUMBO
PENSIONS CORRESPONDENT
More than 6,000 British Airways pen-
sioners could die before a legal dispute
between the airline and its retirement
plans trustees is finally settled, accord-
ing to court documents.
The warning was made by trustees of
the Airways Pension Scheme, which has
been locked in a four-year dispute with
BA over the awarding of a 0.2 per cent
discretionary increase to thousands of
retired airline workers.
The High Court ruled last month that
the trustees decision to award the extra
payment, which was to have been paid
in December 2013, was valid. But the
High Court last week granted BA leave
to appeal against the decision.
In the court filing opposing BAs
wrongs of low interest rates and low
inflation is one thing. Dealing with the
practical fallout is another, as Mark
Carney is about to discover.
The governor of the Bank of England
has a revolt on his hands. Some of his
staff are voting on whether to strike in
protest at the 1 per cent pay rise they
have been offered.
Mr Carney has not accepted a pay
rise since he joined the bank in 2013,
although he might be wise not to
point that out.
His response to the strike threat may
be to point staff towards the BoEs most
recent inflation report, which loftily
announced that wage growth has been
notably weaker than expected but
added that wage growth is expected to
rise over time
Whether that would placate angry
employees is a different matter. Unite,
the union, sounds uncompromising,
calling the central bank arrogant and
out of touch.
One wonders what the MPC would
have to say about it all.
oliver.ralph@ft.com
Pershing Square: jonathan.eley@ft.com
Johnson Matthey, the worlds
largest manufacturer of catalytic
converters, said the focus on clean
air would drive medium and long-
term growth as Europe and Asia
introduced tighter legislation to
control emissions.
Robert MacLeod, chief executive,
announced a 5 per cent increase in
the ordinary dividend, paying out
75p per share.
He added that he expected sales
growth at constant rates for the
year ahead to be roughly in line
with the 6 per cent increase in the
groups second half.
Cat Rutter Pooley and Kate Allen
Peter Olson/NewsCast
appeal claim, the trustees said 3,833
members had already died between
December 2013, when BA initiated legal
action, and May 19 this year. This
included 2,318 pensioners and 1,515
dependants of deceased members
receiving pension benefits.
The trustees estimate another 2,330
of the funds 26,000 members could die
if BAs appeal was to stretch a further
two years.
We understand that this latest ruling
will be disappointing for members, said
the APS in a statement.
An injunction has been placed on the
trustees making the 0.2 per cent payout,
estimated to cost 12m in 2013, while
the appeal is under way.
BA will face extra costs if it loses, with
the High Court deciding it should com-
pensate members for the delay.
Friday 2 June 2017
City
Insider
Edited by
Emma.Dunkley
emma.dunkley@ft.com
Benoit dAngelin
Right horse
Brexit might be worrying the Citys
EU nationals. But there is little sign
of bankers quitting the UK yet.
Witness the commitment of Benoit
dAngelin, of advisory boutique
Ondra, which he founded a few
years ago with fellow Lehmanite
Michael Tory.
Now DAngelin has set up his
own venture, with another former
colleague, Laurent Clarenbach. This
month DAngelin & Co move into
swanky offices in Love Lane. After
running on a shoestring for a few
months, the founding partners and
five staff already have 20 clients,
including a sprinkling of blue-chips.
Along the way, DAngelin found
time to act as new French president
Emmanuel Macrons UK fundraiser
not easy when, by his estimate,
80 per cent of the Citys French
exiles were natural supporters of
rival Franois Fillon. Having backed
the right horse, though, DAngelin
could find himself rewarded with
some nice French business as his
homeland restructures. En Marche!
Bloomberg
Monumental decision
Not long now until Bloombergs
London HQ is finished. Just a
matter of getting the furnishings
right and in tune with the
building. Stone block supplier
Marshalls reckons the edifice, in the
Mansion House area, will have the
most stone cladding of anything
put up in the Square Mile since St
Pauls Cathedral. Rumours circulate
that the supplier was asked to
quote for a vast stone table and
stone-backed chairs, engraved with
the Bloomberg symbol.
Bloomberg denied this had been
seriously considered. It did not say
whether unfortunate comparisons
with former Labour leader Ed
Milibands Edstone tablet the
hubristic monument to his 2015
policy agenda had put the
company off the idea. Or maybe
someone just realised that stone
seats are not that comfortable.
Lloyds Bank
The clock is ticking
Noel Edmonds shot to fame with
his primetime House Party TV
show, set in Crinkly Bottom and
starring the inflatable Mr Blobby.
When the show was pulled in the
late 1990s, he applied to host
Countdown, losing to Des Lynam.
But Mr Edmonds is back with his
own version of countdown. He has
launched a website with a clock
charting the time left for Lloyds to
compensate victims of fraud at
HBOS, the bank it acquired after
the financial crisis. Having lodged a
claim with Lloyds, he is keeping a
close eye on the compensation
timetable outlined by the bank.
With less than 30 days to
complete the compensation
process, the clock might just step
up the pressure on Lloyds, recently
freed from government ownership.
Martin Wheatley
Return to regulation
Only a week after it emerged that
former Financial Conduct Authority
chief Martin Wheatley had secured
a post on a Hong Kong hedge fund
advisory board, he has another role.
This time, he will be working with
a Washington-based regtech
company, Starling. It uses machine
learning and behavioural sciences
to spot red flags by employees, in
the hope of preventing crises like
the ones Wheatley tried to crack
down on as a regulator.
Wheatley, who has spent the past
two years on sabbatical, joins Rick
Ketchum, the former chief of the
USs Financial Industry Regulatory
Authority, on the Starling board.
Wheatleys experience will help
provide data-driven tools that
mitigate culture and conduct risks
proactively, reduce exposure to
enormous punitive fines, and work
to curb inefficient governance, risk
and compliance spend, Starling
chief Stephen Scott said.
Friday 2 June 2017 FINANCIAL TIMES 19

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-0.178% -0.077% -0.115% -0.11%

0.34% 0.40% 0.22% 0.32% 0.39% 1.07% 0.58% 0.31% 0.601% 0.27%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
May 02 - - Index All World May 02 - Jun 01 Index All World May 02 - Jun 01 Index All World May 02 - Jun 01 Index All World May 02 - Jun 01 Index All World May 02 - Jun 01 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
2,420.12 7,519.95 19,860.03 2,344.61
2,391.17 15,619.65 12,664.92
15,434.34
12,527.84 19,196.74 2,219.67
7,203.94
Day 0.34% Month 1.51% Year 15.41% Day 0.55% Month -0.91% Year 9.75% Day 0.32% Month 4.77% Year 21.90% Day 0.40% Month 0.34% Year NaN% Day 1.07% Month 3.46% Year 15.23% Day -0.12% Month 6.31% Year 18.21%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
6,223.17 25,809.22
49,099.98 49,096.97 1,538.07 10,837.00 10,881.00 3,235.96
6,095.37
1,528.19 24,615.13 3,211.11
Day 0.40% Month 2.90% Year 25.77% Day 0.63% Month -0.32% Year 7.79% Day 0.39% Month 1.23% Year 13.90% Day 0.01% Month 1.54% Year 20.44% Day 0.58% Month 4.85% Year 23.99% Day 0.78% Month 1.91% Year 15.94%

Dow Jones Industrial New York Bovespa So Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
31,137.59
21,054.56 66,093.78 3,303.44
20,949.89 3,249.44
62,963.31 5,318.67 20,936.07
5,301.00 20,759.31 29,894.80
Day 0.22% Month 0.54% Year 18.37% Day 0.40% Month -3.70% Year 28.50% Day 0.66% Month 0.97% Year 18.05% Day 0.99% Month 1.59% Year 17.55% Day -0.47% Month -1.65% Year 6.38% Day -0.03% Month 4.08% Year 16.76%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 22557.81 22348.61 Cyprus CSE M&P Gen 77.46 77.16 Italy FTSE Italia All-Share 23197.45 22982.45 Philippines Manila Comp 7927.49 7837.12 Taiwan Weighted Pr 10087.42 10040.72 Cross-Border DJ Global Titans ($) 274.40 274.35
Australia All Ordinaries 5772.50 5761.30 Czech Republic
PX 1006.08 1002.38 FTSE Italia Mid Cap 40468.71 40186.51 Poland Wig 60283.84 60092.07 Thailand Bangkok SET 1563.11 1561.66 Euro Stoxx 50 (Eur) 3567.92 3554.59
S&P/ASX 200 5738.10 5724.60 Denmark OMXC Copenahgen 20 999.52 995.63 FTSE MIB 20936.07 20731.68 Portugal PSI 20 5313.59 5289.97 Turkey BIST 100 97541.58 97347.63 Euronext 100 ID 1026.59 1019.98
S&P/ASX 200 Res 3339.90 3360.80 Egypt EGX 30 13339.63 13239.16 Japan 2nd Section 5999.97 5960.52 PSI General 2928.38 2921.18 UAE Abu Dhabi General Index 4427.30 4501.76 FTSE 4Good Global ($) 6080.04 6076.71
Austria ATX 3147.52 3123.54 Estonia OMX Tallinn 1122.70 1116.57 Nikkei 225 19860.03 19650.57 Romania BET Index 8769.41 8688.50 UK FT 30 3366.70 3365.70 FTSE All World 307.61 306.65
Belgium BEL 20 3897.29 3888.32 Finland OMX Helsinki General 9777.63 9664.53 S&P Topix 150 1283.01 1270.23 Russia Micex Index 1865.72 1900.38 FTSE 100 7543.77 7519.95 FTSE E300 1538.07 1532.14
BEL Mid 6809.90 6749.60 France CAC 40 5318.67 5283.62 Topix 1586.14 1568.37 RTX 1040.52 1053.30 FTSE 4Good UK 6697.84 6678.64 FTSE Eurotop 100 3012.08 3003.64
Brazil Bovespa 62963.31 62711.47 SBF 120 4246.97 4213.76 Jordan Amman SE 2175.18 2160.39 Saudi-Arabia TADAWUL All Share Index 6871.24 6870.62 FTSE All Share 4127.68 4116.08 FTSE Global 100 ($) 1508.99 1507.93
Canada S&P/TSX 60 911.06 Germany
906.38 M-DAX 25464.06 25128.46 Kenya NSE 20 3441.05 3438.17 Singapore FTSE Straits Times 3235.96 3210.82 FTSE techMARK 100 4696.22 4641.46 FTSE Gold Min ($) 1505.13 1500.33
S&P/TSX Comp 15434.34 15349.91 TecDAX 2313.17 2289.26 Kuwait KSX Market Index 6785.37 6726.87 Slovakia SAX 304.13 304.13 USA DJ Composite 7311.16 7282.22 FTSE Latibex Top (Eur) 3998.60 3962.20
S&P/TSX Div Met & Min 676.28 711.71 XETRA Dax 12664.92 12615.06 Latvia OMX Riga 855.33 851.33 Slovenia SBI TOP 797.89 782.22 DJ Industrial 21054.56 21008.65 FTSE Multinationals ($) 1764.04 1761.67
Chile IGPA Gen 24461.74 24354.53
Greece Athens Gen 781.85 775.24 Lithuania OMX Vilnius 592.53 592.18 South Africa FTSE/JSE All Share 52840.68 53562.57 DJ Transport 9239.81 9163.90 FTSE World ($) 544.65 542.96
China FTSE A200 9091.30 9047.77 FTSE/ASE 20 2077.72 2061.55 Luxembourg LuxX 1743.01 1735.72 FTSE/JSE Res 20 30586.88 31220.26 DJ Utilities 728.72 726.62 FTSEurofirst 100 (Eur) 4344.84 4328.45
FTSE B35 9000.71 8988.96
Hong Kong Hang Seng 25809.22 25660.65 Malaysia FTSE Bursa KLCI 1763.11 1765.87 FTSE/JSE Top 40 46487.50 47153.91 Nasdaq 100 5800.07 5788.80 FTSEurofirst 80 (Eur) 4906.55 4887.86
Shanghai A 3249.44 3264.49 HS China Enterprise 10619.88 10602.97 Mexico IPC 49096.97 48788.44 South Korea Kospi 2344.61 2347.38 Nasdaq Cmp 6223.17 6198.52 MSCI ACWI Fr ($) 463.79 463.73
Shanghai B 315.23 320.91 HSCC Red Chip 4084.33 4084.68 Morocco MASI 11577.96 11536.13 Kospi 200 304.03 304.67 NYSE Comp 11653.21 11598.03 MSCI All World ($) 1911.74 1909.90
Shanghai Comp 3102.62 3117.13
Hungary Bux 34762.46 34551.90 Netherlands AEX 527.03 524.06 Spain IBEX 35 10881.00 10880.00 S&P 500 2420.12 2411.80 MSCI Europe (Eur) 1593.34 1594.48
Shenzhen A 1855.00 1891.38
India BSE Sensex 31137.59 31145.80 AEX All Share 803.36 798.18 Sri Lanka CSE All Share 6693.68 6674.32 Wilshire 5000 25165.39 25041.34 MSCI Pacific ($) 2544.22 2541.58
Shenzhen B 1072.81 1081.09 Nifty 500 8367.15 8350.95 New Zealand NZX 50 7450.90 7418.90 Sweden OMX Stockholm 30 1641.32 1639.11 Venezuela IBC 75283.76 74977.92 S&P Euro (Eur) 1637.88 1629.79
Colombia COLCAP 1439.48 1444.09
Indonesia Jakarta Comp 5738.16 5712.33 Nigeria SE All Share 29276.59 29064.52 OMX Stockholm AS 590.15 588.46 Vietnam VNI 741.80 737.82 S&P Europe 350 (Eur) 1582.46 1576.35
Croatia CROBEX 1848.42 1864.17
Ireland ISEQ Overall 7056.98 6946.59 Norway Oslo All Share 784.17 781.55 Switzerland SMI Index 9024.92 9016.64 S&P Global 1200 ($) 2134.93 2127.76
Israel Tel Aviv 100 12.96 12.97 Pakistan KSE 100 48780.81 50591.57 Stoxx 50 (Eur) 3226.49 3219.26
(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.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Jun 01 %Chg %Chg Jun 01 %Chg %Chg Jun 01 %Chg %Chg Jun 01 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Tesla 15.5 340.83 -0.18 Glaxosmithkline 209.1 1703.50 -0.17 Santander 422.1 5.79 0.01 Mitsubishi Ufj Fin,. 552.1 691.30 0.40 Glaxosmithkline 1703.50 5.3 9.0 Restaurant 369.00 17.1 14.5 Hostelworld 350.00 9.8 61.0 Aerospace & Defense 5473.28 2.7 18.2
Facebook 11.8 151.37 -0.09 Vodafone 196.1 229.40 -2.36 Roche Gs 323.0 243.33 -0.92 Softbank . 527.5 8946.00 -57.00 3i 927.00 5.1 30.2 Countryside Properties 329.40 9.8 33.7 Ncc 171.00 8.3 -5.2 Electronic & Electrical Equip. 6062.41 2.4 23.5
Amazon.com 11.5 995.93 1.31 Hsbc Holdings 155.5 676.90 1.65 Unicredit 291.3 15.46 -0.11 Tokyo Electron 453.6 16375.00 685.00 Informa 684.50 4.7 0.1 Sophos 464.50 9.1 75.5 Lookers 129.50 7.4 11.3 General Industrials 6054.40 2.4 9.6
Apple 10.7 152.91 0.15 Lloyds Banking 151.7 70.16 -0.38 Novartis N 281.9 72.91 0.05 Canon . 382.8 3903.00 123.00 Compass 1680.00 4.3 12.6 Capita 589.50 8.0 11.0 Sdl 647.00 6.8 46.0 Software & Computer Services 2168.13 2.3 14.5
Nvidia 9.6 144.11 -0.24 British American Tobacco 150.7 5508.00 -21.98 Nestle N 268.0 76.09 0.14 Toyota Motor 299.4 5989.00 57.00 Wolseley 5095.00 3.7 2.7 Caledonia Investments 2944.00 6.4 14.9 Lamprell 108.50 6.8 17.5 Forestry & Paper 22092.06 2.0 23.0
Bank Of America 7.6 22.50 0.09 Shire 137.8 4492.00 -55.12 Repsol 265.3 14.99 0.08 Sumitomo Mitsui Fin,. 270.8 4024.00 50.00 Randgold Resources Ld 7360.00 3.7 14.7 Spirax-sarco Eng 5625.00 6.3 34.8 Communisis 51.25 6.8 18.2 Pharmaceuticals & Biotech. 14708.88 1.9 9.3
Alphabet 7.3 964.00 -0.86 Diageo 137.5 2343.00 17.98 Intesa Sanpaolo 264.2 2.57 0.02 Sony 231.2 4029.00 -5.00 Tui Ag 1190.00 3.7 3.7 Acacia Mining 283.50 6.0 -24.6 Baillie Gifford Shin Nippon 693.25 6.5 20.0 Construction & Materials 6957.39 1.9 2.0
J P Morgan Chase & Co 7.2 82.67 0.52 Bp 133.7 470.00 2.75 Daimler Ag Na O.n. 262.0 65.07 0.46 Fanuc 212.9 21680.00 -90.00 Rolls-royce Holdings 885.50 3.6 32.1 Marshalls 412.50 5.2 41.0 Petropavlovsk 8.00 6.4 15.1 Travel & Leisure 9986.63 1.6 14.1
Microsoft 6.8 69.81 -0.03 Rio Tinto 130.2 3143.00 15.90 Royal Dutch Shella 256.3 24.31 0.16 Mizuho Fin,. 208.6 194.10 1.30 Carnival 5035.00 3.0 21.8 Auto Trader 435.00 5.1 8.4 Nanoco 41.75 5.1 -7.8 Media 8014.11 1.5 2.2
Alphabet 6.5 986.01 -1.08 Bhp Billiton 128.8 1185.00 -2.88 Akzo Nobel 256.1 75.02 0.51 Nippon Telegraph And Telephone 203.3 5353.00 45.00 Pearson 710.50 3.0 -13.2 Inmarsat 844.50 5.1 12.6 Hss Hire 68.50 5.0 -16.9 Industrial Transportation 3198.02 1.3 5.0
Bae Systems 673.00 2.9 14.2 Btg 662.50 4.9 11.1 Tr Eur Growth Trust 1055.00 5.0 36.6 Real Estate Investment Trusts 3039.91 1.2 4.5
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Merlin Entertainments 532.50 2.8 18.6 Just Eat 669.50 4.6 15.8 Kenmare Resources 280.75 4.8 11.9 Personal Goods 37598.28 1.2 28.0
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Signet Jewelers 51.75 3.65 7.59 Auto Trader 435.00 27.19 6.53 Ses 22.91 0.90 4.06 Amada Co., 1348.00 58.00 4.50 Shire 4492.00 -6.8 -5.7 Petrofac 375.60 -12.8 -56.8 Lonmin 73.00 -14.0 -46.5 Fixed Line Telecommunication 3509.39 -2.9 -15.9
Centurylink 25.94 1.53 6.27 Inmarsat 844.50 46.34 5.79 Atlantia 25.63 0.85 3.43 Tokyo Electron 16375.00 685.00 4.37 Taylor Wimpey 190.00 -5.1 24.0 Tullow Oil 186.00 -10.4 -41.2 Enquest 35.50 -13.4 -16.5 Gas Water & Multiutilities 6399.16 -2.9 5.7
The Goodyear Tire & Rubber 34.12 1.90 5.90 Iwg 343.90 12.44 3.74 Airbus 75.23 2.16 2.96 Showa Denko K.k. 2236.00 83.00 3.86 Lloyds Banking 70.16 -4.0 12.3 Aldermore 233.90 -7.7 -1.5 Kainos 235.25 -10.6 9.4 Oil Equipment & Services 12580.13 -2.6 -22.9
Liberty Global 22.05 0.94 4.45 Paddy Power Betfair 8420.00 270.00 3.35 Adp 139.30 3.25 2.39 Isetan Mitsukoshi Holdings 1159.00 42.00 3.76 Royal Bank Of Scotland 258.90 -3.8 14.0 Hunting 506.00 -7.7 -19.3 St. Ives 45.75 -10.3 -64.1 Electricity 8921.94 -1.6 -3.4
Wynn Resorts 134.38 5.68 4.41 Caledonia Investments 2944.00 94.00 3.26 Ferrovial 20.50 0.44 2.19 Tosoh 976.00 35.00 3.72 Marks And Spencer 375.30 -3.6 7.2 Onesavings Bank 409.20 -6.2 21.1 Moss Bros 110.00 -8.1 11.1 Real Estate & Investment Servic 2708.27 -1.4 9.8
Anglo American 1034.00 -3.6 -12.1 Firstgroup 142.30 -6.0 36.3 Lsl Property Services 223.25 -7.9 -3.1 Industrial Metals 2228.71 -1.3 -0.7
Downs Downs Downs Downs
Mediclinic Int 781.00 -3.4 1.3 Berkeley Holdings (the) 3199.00 -4.5 14.0 Premier Oil 58.00 -7.6 -21.6 Mining 14724.74 -1.1 -0.5
Hewlett Packard Enterprise 17.57 -1.24 -6.59 Taylor Wimpey 190.00 -12.70 -6.25 Dt.telekom Ag Na 17.28 -0.45 -2.51 Toyobo Co., 191.00 -4.00 -2.05
Bhp Billiton 1185.00 -3.3 -10.4 Petra Diamonds 128.00 -4.5 -18.3 Flybe 35.50 -6.6 -19.3 General Retailers 2647.33 -1.1 2.2
Analog Devices 82.89 -2.87 -3.35 Firstgroup 142.30 -8.57 -5.72 Thyssenkrupp Ag O.n. 23.27 -0.34 -1.44 Toshiba 247.80 -4.20 -1.67
Old Mutual 190.70 -3.1 -8.8 hcape 823.00 -4.3 16.2 Headlam 570.00 -6.5 18.4 Food & Drug Retailers 3056.77 -0.5 -0.7
Extra Space Storage 75.07 -2.40 -3.10 Nostrum Oil & Gas 518.50 -26.50 -4.99 Caixabank 4.15 -0.06 -1.40 Toho Z Co., 419.00 -7.00 -1.64
National Grid 1050.00 -2.6 1.8 Clarkson 2600.00 -4.2 19.4 Ashley (laura) Holdings 12.50 -5.7 -37.5 Oil & Gas Producers 7859.65 -0.3 -7.4
Public Storage 210.68 -4.67 -2.17 Aldermore 233.90 -10.46 -4.29 Svenska Cellulosa Ab Sca Ser. B 31.00 -0.44 -1.40 Unitika 79.00 -1.00 -1.25
Glencore 286.05 -2.2 2.7 Cairn Energy 202.80 -4.2 -14.3 Helical 320.25 -5.3 8.7 Banks 4330.19 -0.2 4.8
Seagate Technology 42.77 -0.80 -1.84 Mediclinic Int 781.00 -27.80 -3.44 Atlas Copco Ab Ser. A 32.57 -0.40 -1.21 Jfe Holdings,. 1824.50 -22.00 -1.19
Bt 303.85 -2.2 -16.5 Intermediate Capital 886.00 -4.1 26.0 Pendragon 37.75 -5.2 18.4 Household Goods 19020.15 0.1 18.7
Based on the constituents of the S&P500 and the Nasdaq 100 index Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Jun 1 Currency Mid Change Mid Change Mid Change Jun 1 Currency Mid Change Mid Change Mid Change Jun 1 Currency Mid Change Mid Change Mid Change Jun 1 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 16.0825 -0.0538 18.0534 -0.0919 20.7481 -0.0830 Indonesia Indonesian Rupiah 13320.0000 - 14952.3543 -26.0693 17184.2269 -11.3173 Poland Polish Zloty 3.7332 0.0117 4.1906 0.0059 4.8162 0.0119 ..Three Month 0.7755 0.0005 0.8699 -0.0009 - -
Australia Australian Dollar 1.3543 0.0110 1.5202 0.0097 1.7472 0.0131 Israel Israeli Shekel 3.5515 0.0122 3.9867 0.0068 4.5818 0.0127 Romania Romanian Leu 4.0693 0.0048 4.5680 -0.0026 5.2498 0.0027 ..One Year 0.7767 0.0005 0.8694 -0.0009 - -
Bahrain Bahrainin Dinar 0.3771 - 0.4233 -0.0007 0.4865 -0.0003 Japan Japanese Yen 111.2500 0.6650 124.8835 0.5301 143.5243 0.7640 Russia Russian Ruble 56.4363 -0.3263 63.3524 -0.4773 72.8088 -0.4691 United States United States Dollar - - 1.1225 -0.0020 1.2901 -0.0008
Bolivia Bolivian Boliviano 6.9100 - 7.7568 -0.0135 8.9146 -0.0059 ..One Month 111.2499 0.6647 124.8836 0.5302 143.5243 0.7639 Saudi Arabia Saudi Riyal 3.7504 - 4.2100 -0.0073 4.8384 -0.0032 ..One Month - - 1.1224 -0.1684 1.2902 -0.0009
Brazil Brazilian Real 3.2299 -0.0130 3.6257 -0.0209 4.1668 -0.0195 ..Three Month 111.2496 0.6641 124.8836 0.5303 143.5241 0.7636 Singapore Singapore Dollar 1.3860 0.0026 1.5559 0.0002 1.7881 0.0022 ..Three Month - - 1.1220 -0.1684 1.2905 -0.0009
Canada Canadian Dollar 1.3484 -0.0023 1.5136 -0.0052 1.7396 -0.0041 ..One Year 111.2480 0.6609 124.8837 0.5306 143.5243 0.7630 South Africa South African Rand 12.9675 -0.2187 14.5566 -0.2714 16.7295 -0.2934 ..One Year - - 1.1202 -0.1684 1.2916 -0.0008
Chile Chilean Peso 672.3000 0.7900 754.6895 -0.4271 867.3384 0.4488 Kenya Kenyan Shilling 103.3500 -0.0500 116.0154 -0.2584 133.3325 -0.1523 South Korea South Korean Won 1121.9500 2.3500 1259.4435 0.4473 1447.4348 2.0808 Venezuela Venezuelan Bolivar Fuerte 10.1209 0.0218 11.3611 0.0047 13.0570 0.0195
China Chinese Yuan 6.8049 -0.0161 7.6388 -0.0314 8.7790 -0.0266 Kuwait Kuwaiti Dinar 0.3037 - 0.3409 -0.0006 0.3918 -0.0003 Sweden Swedish Krona 8.6895 0.0145 9.7544 -0.0007 11.2104 0.0113 Vietnam Vietnamese Dong 22705.0000 -10.0000 25487.5124 -55.6632 29291.9263 -32.2110
Colombia Colombian Peso 2889.2300 -33.6150 3243.3014 -43.4531 3727.4142 -45.8489 Malaysia Malaysian Ringgit 4.2887 0.0086 4.8142 0.0013 5.5328 0.0075 Switzerland Swiss Franc 0.9695 0.0019 1.0883 0.0002 1.2507 0.0016 European Union Euro 0.8908 0.0015 - - 1.1493 0.0012
Costa Rica Costa Rican Colon 570.5400 -3.2050 640.4589 -4.7204 736.0572 -4.6222 Mexico Mexican Peson 18.5777 -0.1222 20.8543 -0.1737 23.9671 -0.1735 Taiwan New Taiwan Dollar 30.0970 0.0180 33.7853 -0.0386 38.8283 -0.0023 ..One Month 0.8906 0.0016 - - 1.1492 0.0012
Czech Republic Czech Koruna 23.4831 0.0478 26.3609 0.0078 30.2957 0.0418 New Zealand New Zealand Dollar 1.4145 0.0056 1.5879 0.0035 1.8249 0.0060 Thailand Thai Baht 34.1505 0.0905 38.3356 0.0349 44.0578 0.0878 ..Three Month 0.8903 0.0016 - - 1.1491 0.0012
Denmark Danish Krone 6.6268 0.0109 7.4389 -0.0007 8.5493 0.0084 Nigeria Nigerian Naira 314.7500 - 353.3222 -0.6158 406.0609 -0.2673 Tunisia Tunisian Dinar 2.4368 -0.0019 2.7354 -0.0068 3.1437 -0.0045 ..One Year 0.8885 0.0015 - - 1.1485 0.0013
Egypt Egyptian Pound 18.0050 -0.0705 20.2115 -0.1145 23.2284 -0.1063 Norway Norwegian Krone 8.4444 0.0220 9.4792 0.0082 10.8941 0.0212 Turkey Turkish Lira 3.5345 -0.0021 3.9676 -0.0092 4.5598 -0.0056
Hong Kong Hong Kong Dollar 7.7919 -0.0006 8.7467 -0.0159 10.0523 -0.0074 Pakistan Pakistani Rupee 104.8350 - 117.6824 -0.2051 135.2483 -0.0890 United Arab Emirates UAE Dirham 3.6731 0.0001 4.1232 -0.0071 4.7387 -0.0030
Hungary Hungarian Forint 274.0680 -0.0850 307.6547 -0.6318 353.5768 -0.3425 Peru Peruvian Nuevo Sol 3.2675 -0.0018 3.6679 -0.0084 4.2154 -0.0050 United Kingdom Pound Sterling 0.7751 0.0005 0.8701 -0.0009 - -
India Indian Rupee 64.5425 0.0225 72.4521 -0.1010 83.2667 -0.0258 Philippines Philippine Peso 49.7950 0.0200 55.8973 -0.0749 64.2408 -0.0165 ..One Month 0.7753 0.0005 0.8701 -0.0009 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Jun 01 May 31 May 30 May 26 May 25 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
Strlg Day's Euro Strlg Strlg Year Div P/E X/D Total FT 30 3366.70 3365.70 3367.10 3367.40 3359.20 0.00 3391.10 3060.90 Personal Goods 22.76 FTSE 250 Index 9.60 General Retailers 4.41 FTSE 100 Price Change FTSE 100 Price Change
Jun 01 chge% Index May 31 May 30 ago yield% Cover ratio adj Return FT 30 Div Yield 1.46 1.46 1.47 1.47 1.48 0.00 3.93 2.74 Electronic & Elec Eq 19.50 Real Est Invest & Se 9.31 Banks 4.38 3I Group PLC 927.00 32.00 London Stock Exchange Group PLC 3442 17.00
FTSE 100 (100) 7543.77 0.32 6760.94 7519.95 7526.51 6185.61 3.67 0.91 29.96 145.66 6274.06 P/E Ratio net 30.54 30.51 30.36 30.36 30.11 0.00 19.44 14.26 Forestry & Paper 18.85 FTSE SmallCap Index 8.82 Utilities 3.80 Admiral Group PLC 2055 18.00 Marks And Spencer Group PLC 375.30 -7.20
FTSE 250 (250) 20010.62 0.19 17934.09 19972.17 19991.85 17076.26 2.64 1.69 22.43 237.71 14500.69 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Household Goods & Ho 16.88 Equity Invest Instr 8.63 Construct & Material 3.29 Anglo American PLC 1034 2.50 Mediclinic International PLC 781.00 -27.50
FTSE 250 ex Inv Co (207) 21458.20 0.23 19231.46 21409.05 21442.54 18546.13 2.68 1.72 21.71 263.32 15866.56 FT 30 hourly changes Consumer Goods 14.26 Health Care 8.46 Real Est Invest & Tr 3.04 Antofagasta PLC 817.50 16.50 Merlin Entertainments PLC 532.50 3.50
FTSE 350 (350) 4185.32 0.30 3751.00 4172.99 4176.71 3455.64 3.49 1.01 28.33 75.47 6993.02 8 9 10 11 12 13 14 15 16 High Low Aerospace & Defense 13.45 Chemicals 8.19 Basic Materials 3.00 Ashtead Group PLC 1595 29.00 Micro Focus International PLC 2460 66.00
FTSE 350 ex Investment Trusts (306) 4151.01 0.30 3720.26 4138.43 4142.44 3431.57 3.53 1.00 28.26 75.86 3573.00 3365.7 3371.7 3371.8 3370.5 3372.5 3375.1 3376.3 3370.5 3365 3379.4 3363.6 Tobacco 13.10 Pharmace & Biotech 8.02 Leisure Goods 2.44 Associated British Foods PLC 3010 14.00 Mondi PLC 2051 27.00
FTSE 350 Higher Yield (121) 3886.66 0.24 3483.34 3877.29 3882.81 3148.83 4.73 0.74 28.64 95.65 6798.89 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Industrial Eng 12.82 Nonlife Insurance 7.68 Mining 1.80 Astrazeneca PLC 5328 94.00 Morrison (Wm) Supermarkets PLC 247.10 0.90
FTSE 350 Lower Yield (229) 4084.39 0.36 3660.55 4069.78 4070.85 3437.78 2.03 1.76 27.97 41.72 4466.32 Software & Comp Serv 12.42 Automobiles & Parts 6.57 Telecommunications 1.18 Aviva PLC 529.50 4.50 National Grid PLC 1050 -39.50
FTSE SmallCap (277) 5650.27 -0.09 5063.93 5655.22 5653.93 4586.10 2.70 1.21 30.54 65.82 8074.83 Financial Services 12.37 Financials 6.17 Media 0.20
FTSE SmallCap ex Inv Co (146) 5022.26 -0.20 4501.10 5032.50 5035.97 4169.64 2.82 1.54 23.03 57.54 7539.34 FX: EFFECTIVE INDICES Health Care Eq & Srv 12.10 Gas Water & Multi 5.85 Food & Drug Retailer -2.25
Babcock International Group PLC 938.50 5.50 Next PLC 4400 40.00
Bae Systems PLC 673.00 7.50 Old Mutual PLC 190.70 2.50
FTSE All-Share (627) 4127.68 0.28 3699.34 4116.08 4119.58 3406.05 3.46 1.02 28.40 73.47 6973.08 Travel & Leisure 10.53 FTSE All{HY-}Share Index 5.54 Electricity -3.69
May 31 May 30 Mnth Ago Jun 01 May 31 Mnth Ago Barclays PLC 211.10 1.10 Paddy Power Betfair PLC 8420 350.00
FTSE All-Share ex Inv Co (452) 4073.27 0.29 3650.58 4061.31 4065.23 3367.66 3.51 1.01 28.14 73.89 3563.10 Support Services 10.37 Life Insurance 5.39 Oil Equipment & Serv -5.50 Barratt Developments PLC 602.00 -10.50 Pearson PLC 710.50 4.00
FTSE All-Share ex Multinationals (567) 1250.31 0.03 928.74 1249.93 1249.68 1146.05 2.99 1.27 26.27 15.78 2228.96 Australia 92.16 92.58 93.72 Sweden 77.05 76.82 77.13 Technology 10.09 NON FINANCIALS Index 5.32 Industrial Metals & -5.76 Bhp Billiton PLC 1185 12.00 Persimmon PLC 2404 -51.00
FTSE Fledgling (94) 9961.36 0.25 8927.65 9936.71 9904.40 7683.07 2.49 1.79 22.47 109.17 18613.63 Canada 86.75 87.06 85.97 Switzerland 160.99 160.55 160.34 Industrials 9.99 Food Producers 5.08 Oil & Gas -7.02 BP PLC 470.00 3.30 Provident Financial PLC 3062 11.00
FTSE Fledgling ex Inv Co (45) 13988.67 0.11 12537.04 13972.61 13829.86 10405.12 2.84 2.90 12.13 158.52 25490.78 Denmark 108.88 108.81 107.89 UK 77.68 77.72 79.43 Beverages 9.91 Industrial Transport 5.00 Oil & Gas Producers -7.07 British American Tobacco PLC 5508 -22.00 Prudential PLC 1757.5 21.50
FTSE All-Small (371) 3928.45 -0.07 3520.79 3931.23 3929.73 3180.10 2.69 1.24 30.00 45.62 7206.55 Japan 139.15 138.94 139.57 USA 102.85 103.16 104.54 Mobile Telecomms 9.90 FTSE 100 Index 4.59 Tech Hardware & Eq -9.13 British Land Company PLC 640.50 6.50 Randgold Resources LD 7360 -5.00
FTSE All-Small ex Inv Co Index (191) 3762.91 -0.19 3372.43 3770.11 3771.08 3109.84 2.82 1.59 22.23 43.09 7156.41 New Zealand 118.01 118.08 115.00 Euro 91.30 91.07 89.08 Consumer Services 4.54 Fixed Line Telecomms -13.85 Bt Group PLC 303.85 -5.70 Reckitt Benckiser Group PLC 7961 23.00
FTSE AIM All-Share Index (799) 990.77 -0.18 887.95 992.55 991.11 739.94 1.59 0.79 79.22 5.65 1089.50 Norway 87.04 87.24 87.40
Bunzl PLC 2425 -7.00 Relx PLC 1680 17.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Burberry Group PLC 1810 -5.00 Rentokil Initial PLC 269.10 3.50
Oil & Gas (16) 8226.88 0.63 7373.16 8175.13 8261.64 6408.47 6.29 0.40 39.43 259.92 7618.02 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Carnival PLC 5035 65.00 Rio Tinto PLC 3143 40.50
Oil & Gas Producers (9) 7902.59 0.64 7082.53 7851.96 7930.38 6112.65 6.34 0.41 38.04 251.49 7575.67 Centrica PLC 201.80 -1.50 Rolls-Royce Holdings PLC 885.50 18.00
Oil Equipment Services & Distribution (7)13412.37 0.18 12020.55 13388.26 13834.36 13279.09 4.69 -0.22 -97.50 306.86 10469.38 FTSE GLOBAL EQUITY INDEX SERIES Coca-Cola Hbc AG 2293 40.00 Royal Bank Of Scotland Group PLC 258.90 -1.10
Basic Materials (28) 5115.37 0.71 4584.54 5079.15 5169.67 3144.85 2.44 1.13 36.23 90.92 5226.92 Compass Group PLC 1680 10.00 Royal Dutch Shell PLC 2158 14.50
Chemicals (7) 14322.31 -0.05 12836.07 14328.82 14377.20 11778.68 2.12 2.35 20.03 95.63 12750.12 May 30 No of US $ Day Mth YTD Total
YTD Gr Div May 30 No of US $ Day Mth YTD Total YTD Gr Div Convatec Group PLC 330.80 10.80 Royal Dutch Shell PLC 2111.5 11.50
Forestry & Paper (1) 24106.49 1.33 21604.93 23789.15 23730.38 15608.69 2.35 3.36 12.67 375.43 26296.57 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Crh PLC 2827 35.00 Royal Mail PLC 441.30 -0.10
Industrial Metals & Mining (2) 2400.67 2.33 2151.55 2345.99 2444.42 1098.17 0.54 21.48 8.59 13.01 2106.43 FTSE Global All Cap 7723 524.89 -0.1 1.7 9.6 745.21
10.8 2.4 Oil & Gas Producers 108 327.49 -0.7 -0.7 -6.8 537.44 -5.4 3.8 Croda International PLC 3994 31.00 Rsa Insurance Group PLC 624.00 -1.50
Mining (18) 14107.49 0.75 12643.54 14002.24 14288.79 8316.10 2.50 0.84 47.64 273.28 7551.58 FTSE Global Large Cap 1442 462.40 -0.1 2.0 9.9 673.34
11.3 2.5 Oil Equipment & Services 28 308.24 -1.6 -1.6 -11.8 448.29 -10.8 3.2 Dcc PLC 7500 125.00 Sage Group PLC 728.50 8.00
FTSE Global Mid Cap 1644 707.64 -0.1 1.3 9.8 953.46
10.9 2.0 Basic Materials 259 456.83 -0.2 -0.2 8.2 696.24 9.7 2.4 Diageo PLC 2343 16.00 Sainsbury (J) PLC 279.30 -1.70
Industrials (112) 5525.76 0.66 4952.35 5489.74 5486.38 4412.76 2.21 0.84 53.62 57.73 5697.02
Construction & Materials (15) 7214.22 0.86 6465.59 7152.38 7154.34 5444.89 2.13 0.39 121.98 101.80 7664.61 FTSE Global Small Cap 4637 736.87 -0.3 0.2 7.2 961.05
8.1 1.9 Chemicals 123 695.23 -0.3 -0.3 10.3 1065.07 11.8 2.4 Direct Line Insurance Group PLC 347.30 -1.30 Schroders PLC 3179 22.00
Aerospace & Defense (9) 5671.79 1.31 5083.22 5598.34 5615.08 4163.60 2.11 -2.18 -21.70 63.69 6091.20 FTSE All-World 3086 306.58 -0.1 1.9 9.9 459.76
11.2 2.4 Forestry & Paper 15 268.64 0.5 0.5 12.8 456.97 15.3 2.9 Easyjet PLC 1390 -24.00 Scottish Mortgage Investment Trust PLC 397.30 0.20
General Industrials (5) 4930.75 0.96 4419.08 4883.94 4869.87 3784.97 2.67 1.20 31.34 56.24 5603.33 FTSE World 2543 542.69 -0.1 1.8 9.7 1092.94
11.0 2.4 Industrial Metals & Mining 68 375.66 -0.1 -0.1 3.7 568.94 4.6 2.2 Experian PLC 1611 -7.00 Severn Trent PLC 2491 -9.00
Electronic & Electrical Equipment (10) 7637.29 0.51 6844.76 7598.17 7612.28 5451.61 1.66 1.91 31.68 53.21 6962.04 FTSE Global All Cap ex UNITED KINGDOM In 7396 543.57 -0.1 1.6 9.5 760.03
10.7 2.3 Mining 53 538.88 0.1 0.1 5.0 818.84 6.7 2.3 Fresnillo PLC 1591 15.00 Shire PLC 4492 20.50
Industrial Engineering (12) 12772.51 -0.01 11447.09 12773.17 12852.11 8563.47 2.09 1.41 33.87 171.69 15598.51 FTSE Global All Cap ex USA 5826 476.26 -0.1 2.5 12.1 723.82
13.8 2.8 Industrials 547 369.82 0.1 0.1 11.6 531.81 12.8 2.1 Gkn PLC 353.20 3.20 Sky PLC 993.50 2.50
Industrial Transportation (7) 5113.52 -0.30 4582.88 5128.92 5078.75 4461.06 3.81 1.25 21.00 52.62 4539.44 FTSE Global All Cap ex JAPAN 6436 537.04 -0.2 1.6 9.7 769.51
10.9 2.4 Construction & Materials 113 517.15 0.0 0.0 12.3 777.44 13.6 2.0 Glaxosmithkline PLC 1703.5 - Smith & Nephew PLC 1364 10.00
Support Services (54) 7754.55 0.49 6949.85 7716.89 7699.27 6656.35 2.14 1.81 25.78 69.69 8047.40 FTSE Global All Cap ex Eurozone 7074 540.36 -0.1 1.4 8.8 752.31
9.9 2.3 Aerospace & Defense 26 651.76 -0.3 -0.3 15.4 929.24 16.6 2.1 Glencore PLC 286.05 0.95 Smiths Group PLC 1611 8.00
FTSE Developed 2102 492.47 -0.1 1.8 9.5 705.27
10.8 2.4 General Industrials 57 245.69 0.0 0.0 4.4 381.26 5.6 2.5 Hammerson PLC 592.50 7.00 Smurfit Kappa Group PLC 2209 28.00
Consumer Goods (38) 22962.12 -0.11 20579.30 22987.99 22896.14 19014.05 2.85 1.78 19.64 361.03 16958.04
FTSE Developed All Cap 5666 517.28 -0.1 1.6 9.2 731.87
10.4 2.3 Electronic & Electrical Equipment 71 404.79 0.5 0.5 17.8 532.88 18.5 1.6 Hargreaves Lansdown PLC 1406 8.00 Sse PLC 1507 2.00
Automobiles & Parts (1) 8300.36 0.91 7439.02 8225.16 8288.61 6638.88 2.51 1.89 21.07 138.65 8000.90
FTSE Developed Large Cap 917 454.38 -0.1 1.9 9.5 660.65
10.9 2.5 Industrial Engineering 102 723.62 0.2 0.2 14.9 1027.15 16.3 2.0 Hikma Pharmaceuticals PLC 1707 19.00 St. James's Place PLC 1186 13.00
Beverages (5) 18875.79 0.80 16917.02 18725.63 18692.64 15758.51 2.52 1.53 25.93 180.53 13299.68
FTSE Developed Europe Large Cap 227 361.62 -0.2 3.6 13.3 605.52
15.9 3.3 Industrial Transportation 99 629.86 0.4 0.4 11.8 905.83 13.1 2.2 HSBC Holdings PLC 676.90 1.30 Standard Chartered PLC 744.80 12.90
Food Producers (8) 8694.17 0.31 7791.96 8666.97 8635.78 8263.91 1.92 2.00 26.13 15.96 7448.36
FTSE Developed Europe Mid Cap 313 580.19 0.0 3.5 17.8 869.23
19.8 2.5 Support Services 79 323.63 0.1 0.1 9.6 445.20 10.6 1.8 Imperial Brands PLC 3654.5 25.50 Standard Life PLC 385.10 2.30
Household Goods & Home Construction (15)15913.99 -0.86 14262.57 16051.26 16003.91 14270.77 2.71 2.18 16.92 272.13 11274.04
FTSE Dev Europe Small Cap 709 823.50 0.1 3.5 18.7 1194.40
20.4 2.4 Consumer Goods 430 476.07 -0.1 -0.1 13.9 702.80 15.2 2.4 Informa PLC 684.50 13.50 Taylor Wimpey PLC 190.00 -13.10
Leisure Goods (1) 5655.03 0.30 5068.20 5638.04 5672.01 5224.55 3.83 1.34 19.54 104.95 5103.23
FTSE North America Large Cap 295 516.16 -0.1 1.3 7.9 701.45
8.9 2.1 Automobiles & Parts 105 387.07 0.4 0.4 5.2 552.99 6.8 2.7 Intercontinental Hotels Group PLC 4426 53.00 Tesco PLC 183.65 -0.05
Personal Goods (6) 32761.12 -0.27 29361.45 32849.39 32654.83 23674.11 2.53 3.04 13.01 376.77 22092.06
FTSE North America Mid Cap 388 759.47 -0.3 0.1 5.8 960.87
6.5 1.7 Beverages 45 628.88 -0.2 -0.2 14.0 939.30 15.0 2.5 International Consolidated Airlines Group S.A. 602.00 -2.00 Tui AG 1190 -8.00
Tobacco (2) 60546.02 -0.12 54263.07 60618.22 60289.88 49635.40 3.39 1.24 23.88 1304.93 39175.18
FTSE North America Small Cap 1432 769.70 -0.7 -0.9 3.1 946.11
3.7 1.6 Food Producers 107 620.51 -0.3 -0.3 9.0 943.05 10.7 2.2 Intertek Group PLC 4338 39.00 Unilever PLC 4320 -11.50
Health Care (21) 10847.80 0.66 9722.11 10776.93 10691.06 9246.36 3.24 0.72 43.07 209.15 8376.56
FTSE North America 683 344.72 -0.1 1.1 7.5 479.49
8.5 2.0 Household Goods & Home Construction 49 454.56 0.2 0.2 12.5 666.14 13.8 2.3 Intu Properties PLC 277.20 5.20 United Utilities Group PLC 1022 -7.00
Health Care Equipment & Services (9) 8548.24 0.30 7661.18 8522.64 8454.27 7270.44 1.26 2.42 32.77 65.24 7418.16
FTSE Developed ex North America 1419 251.95 0.0 2.9 12.6 412.41
14.6 2.9 Leisure Goods 31 210.21 -0.9 -0.9 31.4 276.21 32.3 1.4 Itv PLC 191.60 -4.10 Vodafone Group PLC 229.40 -2.10
Pharmaceuticals & Biotechnology (12)14598.67 0.70 13083.75 14497.10 14381.68 12457.26 3.47 0.64 44.75 300.97 10050.50
FTSE Japan Large Cap 180 350.46 0.4 2.8 7.5 453.04
8.6 2.1 Personal Goods 81 686.84 0.2 0.2 18.8 959.51 19.9 1.9 Johnson Matthey PLC 3091 -21.00 Whitbread PLC 4298 7.00
Consumer Services (94) 5223.45 0.34 4681.40 5205.51 5203.57 4724.81 2.52 2.00 19.88 66.95 4905.33 FTSE Japan Mid Cap 313 572.92 0.4 3.3 10.9 711.24
11.8 1.7 Tobacco 12 1519.57 -0.3 -0.3 19.9 3119.63 21.4 3.3
Food & Drug Retailers (7) 3190.28 0.08 2859.22 3187.81 3201.21 2860.06 1.31 2.26 33.87 22.81 3729.44 Kingfisher PLC 327.50 2.40 Wolseley PLC 5095 -15.00
FTSE Global wi JAPAN Small Cap 794 625.93 0.7 3.7 12.2 804.47
13.3 1.9 Health Care 181 469.02 -0.1 -0.1 10.9 674.85 12.2 2.0 Land Securities Group PLC 1081 11.00 Worldpay Group PLC 314.40 3.80
General Retailers (30) 2610.42 -0.06 2339.54 2611.96 2615.26 2687.71 3.00 2.00 16.70 33.55 2984.98
FTSE Japan 493 148.53 0.4 2.9 8.3 215.48
9.3 2.0 Health Care Equipment & Services 68 797.83 -0.1 -0.1 16.0 928.44 16.5 1.0 Legal & General Group PLC 255.00 3.20 Wpp PLC 1747 3.00
Media (21) 8106.37 0.49 7265.16 8066.71 8073.35 7371.19 2.87 1.82 19.21 95.81 4992.21
FTSE Asia Pacific Large Cap ex Japan 548 655.46 -0.1 2.0 15.6 1022.50
16.7 2.8 Pharmaceuticals & Biotechnology 113 333.20 -0.1 -0.1 8.9 501.40 10.5 2.5 Lloyds Banking Group PLC 70.16 -0.43
Travel & Leisure (36) 9759.65 0.47 8746.87 9713.75 9682.11 8296.68 2.38 2.13 19.75 147.66 9271.21
FTSE Asia Pacific Mid Cap ex Japan 412 875.68 0.1 1.4 15.1 1309.22
15.9 2.6 Consumer Services 383 440.92 -0.1 -0.1 11.7 587.76 12.6 1.6
Telecommunications (6) 3496.61 -0.93 3133.76 3529.37 3503.14 3888.49 5.06 -0.01 -1334.9 4.42 3849.82 FTSE Asia Pacific Small Cap ex Japan 1449 541.94 0.1 0.1 11.5 797.70
12.2 2.6 Food & Drug Retailers 55 292.19 -0.2 -0.2 3.3 406.47 4.4 2.0
8
Fixed Line Telecommunications (4) 3577.29 -1.80 3206.07 3642.93 3632.33 5017.36 4.89 1.20 17.08 0.00 3225.16
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
960 518.37
2057 714.10
-0.1
-0.1
2.0
1.8
15.6 858.90
16.6
14.0 1057.37
14.9
2.8 General Retailers
2.8 Media
120 610.79
79 336.60
-0.1
0.0
-0.1
0.0
12.2 792.78
10.7 449.65
13.0
11.4
1.5
1.6
UK STOCK MARKET TRADING DATA
Mobile Telecommunications (2) 5173.66 -0.55 4636.78 5202.32 5153.49 5112.59 5.13 -0.51 -38.42 9.33 5119.16 FTSE Emerging Large Cap 525 676.73 -0.2 2.6 14.4 1008.80
15.2 2.8 Travel & Leisure 129 446.97 0.0 0.0 17.4 602.73 18.4 1.7 Jun 01 May 31 May 30 May 26 May 25 Yr Ago
Utilities (7) 8938.87 -1.83 8011.27 9105.87 9134.18 8429.54 4.65 1.66 12.92 195.33 10198.40 FTSE Emerging Mid Cap 459 892.63 -0.1 -0.9 12.2 1314.25
13.3 2.8 Telecommunication 94 165.46 0.4 0.4 2.7 307.23 4.2 4.1 SEAQ Bargains 4210.00 5546.00 5233.00 5202.00 5202.00 5202.00
Electricity (2) 8901.68 0.17 7977.94 8886.98 8940.63 8868.68 5.52 2.02 8.98 149.05 12719.18 FTSE Emerging Small Cap 1073 737.05 -0.1 -0.5 13.7 1048.61
14.5 2.6 Fixed Line Telecommuniations 43 134.60 0.6 0.6 -4.3 275.44 -2.5 4.8 Order Book Turnover (m) 367.61 344.31 193.26 193.78 193.78 193.78
Gas Water & Multiutilities (5) 8457.15 -2.34 7579.54 8660.13 8680.59 7862.63 4.43 1.55 14.60 196.83 9684.73 FTSE Emerging Europe 114 352.75 -0.5 -0.5 4.9 543.93
5.8 4.0 Mobile Telecommunications 51 181.03 0.1 0.1 13.3 301.43 14.1 3.3 Order Book Bargains 1089112.00 1057471.00 1020479.00 1020304.00 1020304.00 1020304.00
Financials (289) 5116.09 0.35 4585.19 5098.39 5101.42 4172.51 3.53 1.04 27.10 102.23 4753.48 FTSE Latin America All Cap 230 841.65 -0.2 -1.6 9.6 1294.94
11.1 2.8 Utilities 167 274.47 0.3 0.3 11.3 530.90 13.0 3.7 Order Book Shares Traded (m) 1760.00 1498.00 1709.00 1702.00 1702.00 1702.00
Banks (12) 4276.41 0.17 3832.64 4269.13 4270.46 3278.00 4.13 0.62 38.82 107.87 3180.21 FTSE Middle East and Africa All Cap 242 712.81 -0.5 2.8 8.4 1110.16
10.0 3.0 Electricity 109 300.81 0.3 0.3 10.6 575.06 12.2 3.7 Total Equity Turnover (m) 8935.74 10212.87 8747.73 8690.30 8690.30 8690.30
Nonlife Insurance (10) 3452.88 0.14 3094.57 3448.14 3443.19 2934.50 3.12 1.69 18.99 60.87 6096.15 FTSE Global wi UNITED KINGDOM All Cap In 327 343.52 -0.1 3.4 10.3 574.30
12.4 3.5 Gas Water & Multiutilities 58 289.06 0.2 0.2 12.6 574.38 14.5 3.6 Total Mkt Bargains 1236412.00 1184824.00 1152592.00 1152315.00 1152315.00 1152315.00
Life Insurance/Assurance (10) 8491.87 1.10 7610.65 8399.81 8426.38 7062.41 3.65 1.26 21.77 210.60 8341.68 FTSE Global wi USA All Cap 1897 593.32 -0.2 0.9 7.4 782.68
8.3 1.9 Financials 698 226.79 -0.4 -0.4 6.3 369.66 7.9 3.0 Total Shares Traded (m) 4561.00 4153.00 4815.00 4794.00 4794.00 4794.00
Index- Real Estate Investment & Services (20) 2720.40 -0.81 2438.10 2742.63 2753.16 2750.74 2.52 1.86 21.39 32.47 7271.15 FTSE Europe All Cap 1440 423.52 -0.2 3.4 14.2 684.20
16.6 3.1 Banks 248 202.56 -0.6 -0.6 5.2 354.61 6.9 3.4 Excluding intra-market and overseas turnover. *UK only total at 6pm. UK plus intra-market turnover. (u) Unavaliable.
Real Estate Investment Trusts (31) 2765.75 0.34 2478.74 2756.31 2753.97 2813.17 3.52 1.19 23.82 45.98 3448.08 FTSE Eurozone All Cap 649 414.15 -0.2 3.7 17.0 675.02
19.3 2.9 Nonlife Insurance 68 245.69 -0.1 -0.1 5.9 356.81 7.7 2.3 (c) Market closed.
General Financial (31) 9143.36 0.66 8194.54 9083.82 9104.84 7545.65 3.16 2.17 14.60 109.17 10456.93 FTSE RAFI All World 3000 3042 6390.28 -0.2 1.3 7.0 8420.10
8.5 3.0 Life Insurance 52 214.60 -0.2 -0.2 7.1 342.10 8.8 3.0
Equity Investment Instruments (175) 9645.57 -0.01 8644.64 9646.26 9629.60 7608.87 2.37 1.17 36.17 96.72 5268.54 FTSE RAFI US 1000 1001 10407.29 -0.2 -0.2 2.6 13615.53
3.5 2.4 Financial Services 147 259.71 -0.4 -0.4 7.8 356.95 8.7 2.0
Non Financials (338) 4883.21 0.26 4376.48 4870.60 4875.18 4048.75 3.44 1.01 28.88 83.21 7217.64 FTSE EDHEC-Risk Efficient All-World 3086 369.70 -0.1 1.9 10.4 513.59
11.5 2.2 Technology 182 235.14 0.2 0.2 21.1 287.66 22.0 1.5 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Technology (16) 2111.57 1.69 1892.45 2076.40 2077.18 1429.95 2.13 1.30 36.14 26.90 2717.67 FTSE EDHEC-Risk Efficient Developed Europe 540 313.43 0.0 3.6 17.1 477.82
19.0 2.5 Software & Computer Services 89 403.81 0.2 0.2 21.3 471.07 22.0 0.9 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Software & Computer Services (12) 2417.84 1.73 2166.94 2376.79 2375.87 1916.50 2.05 1.48 33.03 32.21 3287.81 Oil & Gas 145 347.77 -0.9 -1.5 -7.3 559.41
-6.0 3.7 Technology Hardware & Equipment 93 177.92 0.3 0.3 20.9 226.21 22.0 2.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment (4) 1920.67 1.34 1721.36 1895.29 1911.41 1511.89 2.96 0.00-7400.22 12.16 2251.73 Alternative Energy 9 109.88 -1.2 -1.2 19.6 147.99 19.9 1.6 liable for any loss arising from the reliance on or use of the listed information.
Real Estate Investment & Services 107 323.35 0.1 0.1 17.1 537.64 18.7 2.5 For all queries e-mail ft.reader.enquiries@morningstar.com
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
FTSE 100 7540.93 7539.12 7546.31 7548.39 7551.48 7547.94 7555.12 7545.86 7541.25 7558.26 7534.86 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index and RAFI are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Data provided by Morningstar | www.morningstar.co.uk
FTSE 250 19997.20 20028.55 20025.06 19968.39 19993.60 20014.50 20009.35 20004.78 19986.62 20056.94 19951.12
FTSE SmallCap 5661.90 5648.50 5648.28 5642.82 5644.35 5646.05 5647.06 5647.43 5646.44 5662.22 5640.39 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
FTSE All-Share 4126.33 4126.21 4129.23 4128.06 4130.31 4129.52 4132.51 4128.36 4125.63 4135.27 4122.70 www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. FTSE International Limited. 2013. All Rights reserved. FTSE is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:07:24:00 Day's Low14:51:15 FTSE 100 2010/11 High: 7547.63(29/05/2017) Low: 7099.15(31/01/2017) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:07:12:00 Day's Low14:52:00 FTSE 100 2010/11 High: 4130.15(29/05/2017) Low: 3858.26(31/01/2017)
Further information is available on http://www.ftse.com FTSE International Limited. 2013. All Rights reserved. FTSE is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing DCD Media Pre 8.597 11.115 0.139L 2.352L 1 254L - - - - - date price(p) Sector code Stock price(p) +/- High Low Cap (m)
price up date High Low Stock Price p +or- FirstGroup Pre 5653.3 5218.1 152.6 113.5 9.3 7.5 - - - - - 05/22 10.00 GFHG Grand Fortune High Grade Ltd 10.50 - 10.88 10.88 1680.0
There are currently no rights offers by any companies listed on the LSE. ImmuPharma Pre 0.165 0.076 6.314L 4.548L 4.54L 4.4L - - - - - 05/17 5.00 SOP Spinnaker Opportunities PLC 4.75 0.01 5.25 4.50 123.5
Johnson Matthey Pre 12031 10713.9 461.6 386.3 201.2 175.977 54.5 52 Aug 1 75 72.647 05/09 100.00 DSM Downing Strategic Micro-Cap Investment 107.00 -1.30 109.50 100.00 5949.2
Perpetual Income & Growth Investment Trust Pre 89.8 2.653 14.65 15.12 4.35 4.1 Jun 30 7.35 7 Trust PLC
Sovereign Mines of Africa Pre - - 0.202L 1.991L 0.02L 0.64L - - - - - 04/25 160.00 AIM ESL Eddie Stobart Logistics PLC 159.00 -1.51 165.00 155.00 56909.1
Ventus 2 VCT Pre 1.001 2.036 0.673 1.736 2.63 6.92 2.5 2.75 Aug 9 5 5.25
Ventus VCT Pre 1.079 1.29 0.712 1.008 4.24 5.85 4 12 Aug 9 8 15.5
Watkin Jones Int 133.676 145.888 21.115 9.877L 6.693 5.152L 2.2 1.33 Jun 30 4.87 1.33

Figures in m. Earnings shown basic. Figures in light text are for corresponding period year earlier. Placing price. *Intoduction. When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
20 FINANCIAL TIMES Friday 2 June 2017

MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES

52 Week 52 Week 52 Week 52 Week 52 Week 52 Week
Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m Stock Price Day Chg High Low Yld P/E MCap m
Australia (A$) Finland () Japan () Sweden (SKr) AutomData 102.50 0.13 105.68 85.23 2.21 25.67 45859.56 Lockheed 280.70 -0.43 284.00 228.50 2.55 21.98 81246.66
ANZ 27.95 -0.06 32.95 22.66 8.72 13.36 60594.72 Nokia 5.80 0.15 5.96 3.66 2.75 -45.30 37964.53 AstellasPh 1409 10.50 1779 1392 2.38 13.39 26202 AtlasCpcoB 283.50 -3.60 302.00 183.80 2.15 32.04 12731.12 Avago Tech 236.80 -2.68 242.89 142.27 1.09 -43.65 95042.63 Lowes 79.53 0.76 86.25 64.87 1.71 22.35 68183.69
BHPBilltn 23.73 -0.17 27.95 17.29 2.58 36.09 56275.99 SampoA 45.61 0.38 47.28 34.42 4.63 15.57 28610.25 Bridgestne 4727 75.00 4856 3089 3.05 13.42 34548.63 Ericsson 64.05 0.65 67.75 43.19 7.37 -18.76 22624.39 BakerHu 55.25 0.10 68.59 41.74 1.27 -12.20 23504.74 Lyondell 80.25 0.63 97.64 69.82 4.37 8.86 32325.1
CmwBkAu 79.62 -0.03 87.74 69.22 7.72 14.42 101701.35 France () Canon 3903 123.00 3907 2780 3.96 23.28 46792.62 H&M 217.60 1.10 279.90 211.80 4.48 19.42 36577.74 BankAm 22.50 0.09 25.80 12.05 1.26 13.38 223867.97 Marathon Ptl 53.14 1.10 54.59 32.02 2.72 22.72 27565.71
CSL 131.32 2.03 136.85 91.62 1.53 37.35 44043.07 Airbus Grpe 75.23 2.16 76.07 48.07 1.70 49.06 65403.26 CntJpRwy 18400 265.00 19835 16305 0.70 9.88 34071.01 Investor 402.60 0.80 415.70 260.70 2.49 4.16 21103.39 Baxter 59.99 0.68 60.01 42.22 0.89 17.20 32614.71 Marsh&M 77.08 -0.48 77.85 62.33 1.82 20.99 39631.86
NatAusBk 29.92 -0.20 34.09 23.90 10.08 13.07 59107.93 AirLiquide 109.85 1.35 115.25 88.25 2.05 22.09 47995.98 Denso 4775 54.00 5323 3317 2.50 15.56 34082.5 Nordea Bk 111.50 -0.10 115.70 66.30 5.59 12.24 51967.28 BB & T 42.00 0.35 49.88 32.85 2.90 15.90 34077.55 MasterCard 122.50 -0.38 123.12 86.65 0.69 31.00 129105.49
Telstra 4.43 0.03 5.86 4.00 9.73 14.78 38904.29 AXA 23.85 0.11 25.80 16.11 4.53 9.40 64949.71 EastJpRwy 10810 195.00 10825 8388 1.20 16.89 37838.2 SEB 104.50 -0.30 107.30 67.75 5.28 13.22 26096.67 BectonDick 191.23 2.00 191.53 161.29 1.50 30.79 43228.57 McDonald's 150.98 1.03 151.33 110.33 2.50 25.86 123059.29
Wesfarmers 41.37 -1.33 46.06 38.62 6.79 117.30 34636.1 BNP Parib 62.99 0.17 68.40 35.27 3.60 10.59 88253.6 Fanuc 21680 -90.00 23410 15445 2.37 29.05 39766.29 SvnskaHn 121.60 -0.80 136.30 90.25 4.13 14.54 26713.27 BerkshHat 248100 -340.00 266445 205074 - 17.54 190766.57 McKesson 164.50 1.69 199.43 114.53 0.70 6.85 34693.46
Westpc 30.29 -0.21 35.39 27.57 9.13 13.51 75074.48 ChristianDior 255.50 1.30 256.50 133.75 1.06 35.30 51771.57 FastRetail 37070 -30.00 44370 25305 0.95 37.38 35345.17 Swedbank 208.00 -1.50 234.00 162.90 5.18 11.96 27096.75 Biogen 250.94 3.17 307.33 205.43 - 15.24 53228.19 Medtronic 84.99 0.71 89.27 69.35 2.01 26.81 116341.54
Woolworths 26.13 0.08 27.72 20.30 4.31 12.30 24974.98 Cred Agr 13.71 0.07 14.73 6.79 4.29 8.17 43801.95 Fuji Hvy Ind 3770 25.00 5016 3252 3.80 9.59 26065.56 Telia Co 40.06 0.28 41.30 33.93 10.03 10.84 19962.38 BkNYMeln 47.17 0.05 49.54 35.72 1.62 14.07 49051 Merck 65.05 -0.07 66.80 55.10 2.95 40.16 177908.78
Belgium () Danone 66.87 0.79 70.53 57.66 1.90 37.59 49234.42 Hitachi 674.80 6.10 681.90 400.00 1.77 13.99 29317.95 Volvo 144.80 2.70 148.40 78.50 2.09 26.77 27260.3 BlackRock 412.12 5.38 412.24 317.60 2.32 20.73 66621.62 Metlife 51.49 0.90 58.09 36.17 3.21 -82.27 55399.8
AnBshInBv 104.15 0.30 119.60 92.13 3.55 164.67 197962.77 EDF 9.70 0.10 12.23 7.33 15.79 8.59 29840.16 HondaMtr 3112 -5.00 3675 2417 2.88 13.18 50671.14 Switzerland (SFr) Boeing 186.60 -1.03 188.26 122.35 2.59 22.27 112628.21 Microsoft 69.81 -0.03 70.74 48.04 2.22 29.81 538969.13
KBC Grp 66.26 -0.72 70.98 39.35 1.48 10.80 31097.34 Engie SA 13.53 -0.06 15.21 10.77 7.25 -59.94 36973.64 JapanTob 4205 44.00 4540 3607 3.18 19.16 75595.5 ABB 24.39 0.06 24.89 18.59 3.10 24.88 55719.84 BrisMySq 54.06 0.11 77.12 46.01 2.94 18.19 89060.31 Mnstr Bvrg 50.49 -0.07 55.50 40.64 - 39.47 28668.82
Esslr Intl 118.70 0.35 124.55 93.41 0.89 34.33 29121.59 KDDI 3078 12.00 3378 2745.5 2.66 12.91 71581.52 CredSuisse 13.27 -0.03 16.31 9.76 5.03 -15.48 29604.49 CapOne 77.10 0.18 96.92 58.03 1.86 12.51 37236.88 MondelezInt 46.70 0.11 46.83 40.50 1.63 40.78 70856.89
Brazil (R$)
Hermes Intl 446.25 6.30 468.30 314.00 0.72 47.34 52883.66 Keyence 50560 250.00 50750 31555 0.23 - 55265.53 Nestle 82.80 0.15 83.45 71.45 2.71 30.23 265807.25 CardinalHlth 74.42 0.13 85.52 62.70 2.49 17.22 23507.98 Monsanto 117.39 -0.03 117.47 97.35 1.90 31.76 51511.01
Ambev 18.73 0.02 20.09 15.79 2.16 24.96 91146.92
LOreal 190.95 0.50 192.05 155.20 1.59 35.39 119823.98 MitsbCp 2235.5 17.50 2705.5 1679.5 2.68 -26.69 31951.61 Novartis 79.35 0.05 82.80 67.40 3.45 28.00 214190.14 Carnival 65.25 1.18 65.25 42.94 1.96 20.51 35014.12 MorganStly 42.41 0.67 47.33 23.11 1.72 13.91 78440.01
Bradesco 27.01 -0.04 31.13 22.32 2.20 9.31 25543.46
LVMH 229.00 1.85 239.65 130.55 1.54 29.59 130486.77 MitsubEst 2119.5 51.00 2443 1724 0.85 31.30 26499.15 Richemont 80.75 -0.05 85.90 65.60 2.08 35.26 43479.81 Caterpillar 106.15 0.72 106.24 70.53 2.99-411.54 62539.02 MylanNV 39.19 0.21 50.40 33.60 - 37.61 21005.12
Cielo 22.88 0.07 31.48 20.36 2.34 14.97 19245.7
Orange 15.53 -0.11 15.80 12.38 3.79 83.32 46373.25 MitsubishiEle 1562.5 35.50 1802 1108 1.89 13.73 30157.32 Roche 264.80 -1.00 273.00 218.30 3.05 23.89 191901.19 CBS 61.36 0.25 70.10 48.88 1.12 16.99 22602.45 Netflix 162.17 -0.90 164.75 84.50 - 204.14 69895.99
ItauHldFin 32.29 0.01 36.38 22.27 4.61 8.57 33508.63
PernodRic 121.75 0.85 121.75 90.00 1.51 26.07 36275.25 MitsuiFud 2646 25.00 2863.5 2031.5 1.13 20.11 23580.31 Swiss Re 88.70 0.40 98.50 86.30 5.43 8.92 32944.9 Celgene 115.74 1.33 127.64 94.42 - 42.17 90372.61 NextEraE 141.46 0.02 141.83 110.49 2.62 16.70 66226.29
Petrobras 13.86 0.24 19.72 9.95 - -17.33 31937.21
Renault 84.81 1.72 90.76 63.64 2.78 6.94 28153.75 MitUFJFin 691.30 0.40 778.80 425.80 2.31 13.53 88044.27 Swisscom 465.90 1.50 489.80 426.80 9.44 14.98 24895.07 CharlesSch 39.23 0.48 43.65 23.83 0.66 31.86 52455.72 Nike 52.62 -0.20 60.33 49.01 1.34 21.15 69531.82
Vale 26.91 -0.26 37.28 13.80 0.60 6.90 26804.52
Safran 79.91 1.11 80.49 53.00 1.31 -92.49 37408.75 Mizuho Fin 194.10 1.30 225.30 142.00 3.85 5.92 44292 Syngent 463.00 -6.70 471.20 360.50 2.57 34.61 42748.26 Charter Comms 346.26 0.71 354.05 214.06 - 18.27 93353.77 NorfolkS 124.35 0.32 125.15 78.73 1.88 23.14 36034.47
Canada (C$) Murata Mfg 15515 165.00 16790 10365 1.41 21.95 31415.41 Chevron Corp 103.77 0.29 119.00 97.53 4.28 65.74 196598.66 Northrop 257.02 -1.20 259.22 206.69 1.42 20.19 44868.69
Sanofi 87.88 -0.29 92.97 62.50 3.27 26.42 123868.56 UBS 15.51 0.11 17.49 15.11 5.48 15.68 61617.79
BCE 61.21 - 63.41 56.80 4.49 19.01 40831.05 NipponTT 5353 45.00 5390 4156 2.23 13.80 100871.9 Chubb 143.75 0.56 143.81 121.08 1.99 15.52 67120.53 NXP 109.16 -0.75 109.90 73.62 - 19.13 37767.94
Sant Gbn 50.47 0.70 52.40 32.15 2.41 21.89 31476.81 Zurich Fin 285.00 0.30 290.80 217.10 6.26 13.18 44478.87
BkMontrl 91.02 0.35 104.15 79.82 3.76 11.64 44016.93 Nissan Mt 1069 7.50 1220 893.10 4.19 8.95 40556.81 Cigna 163.38 2.15 164.88 115.03 0.02 22.35 41827.67 Occid Pet 60.12 1.19 78.48 57.20 5.24 -43.96 45966.65
Schneider 68.86 0.30 74.50 49.50 2.85 22.72 45923.03 Taiwan (NT$)
BkNvaS 76.38 0.16 82.30 62.36 4.05 12.19 68080.32 Nomura 662.70 -0.70 784.00 338.80 1.80 15.32 20987.23 Cisco 31.62 0.09 34.60 27.13 3.37 16.10 158101.72 Oracle 45.40 0.01 46.99 37.62 1.37 20.75 186806.65
SFR Group 32.17 0.80 32.55 19.51 - -66.72 15974.93 Chunghwa Telecom 108.00 0.50 125.50 99.50 4.95 21.26 27836.82
Brookfield 50.85 -0.29 53.08 41.39 1.45 29.48 37278.37 Nppn Stl 2367.5 11.00 2912 1787.5 1.38 54.38 20223.69 Citigroup 60.69 0.15 62.69 38.31 0.90 11.79 167095.22 Pepsico 116.32 -0.55 118.12 98.50 2.67 24.35 166163.26
SocGen 47.14 0.47 52.26 25.00 4.17 11.96 42752.53 Formosa PetChem 105.50 -2.50 115.00 83.30 3.88 11.18 33391.63
CanadPcR 214.13 0.41 218.78 156.01 0.97 20.43 23303.26 NTTDCMo 2729 12.00 2946 2361 3.00 14.90 95657.61 CME Grp 117.41 0.12 127.60 92.29 1.95 27.56 39894.52 Perrigo 75.06 2.21 111.00 65.47 0.82 -3.06 10763.4
Total 47.18 -0.10 49.50 39.03 5.18 17.28 131514.78 HonHaiPrc 104.50 1.50 105.50 76.30 3.56 11.96 60167.28
CanImp 105.39 -0.23 120.83 95.50 4.60 8.93 31394.49 Panasonic 1455.5 35.00 1458 831.40 1.71 16.28 32093.67 Coca-Cola 45.43 -0.04 46.01 39.88 3.22 31.01 194102.37 Pfizer 32.71 0.06 37.39 29.83 3.85 26.64 195178.35
UnibailR 231.90 2.25 250.55 203.10 4.00 9.48 25956.97 MediaTek 228.00 -2.00 260.50 203.00 4.94 13.41 11981.45
CanNatRs 39.44 0.50 46.74 36.26 2.50-197.73 32676.59 Seven & I 4737 29.00 4902 4051 1.96 42.04 37744.5 Cognizant 66.98 0.07 67.34 45.44 - 23.61 39448.07 Phillips66 76.33 0.22 88.87 73.67 3.41 22.98 39393.78
Vinci 77.56 -0.17 79.84 49.93 2.40 17.65 51583.8 TaiwanSem 207.00 4.00 208.50 154.00 2.97 14.80 178342.94
CanNatRy 105.85 1.12 106.11 72.78 1.52 21.01 59442.72 ShnEtsuCh 10075 143.00 10120 5603 1.25 24.64 39132.36 ColgtPlm 76.25 -0.11 76.86 63.43 2.12 26.85 67351.08 PhilMorris 120.06 0.26 121.11 86.78 3.56 25.75 186470.37
Vivendi 19.69 0.38 20.09 14.87 4.99 57.21 28446.14
Enbridge 52.65 0.65 59.19 50.76 4.31 46.31 63983.22 Softbank 8946 -57.00 9084 5194 0.47 26.32 88507.93 Thailand (THB) Comcast 41.52 -0.17 41.83 30.02 1.42 21.35 196535.44 PNCFin 118.97 0.27 131.83 77.40 1.86 15.61 57569.75
GtWesLif 33.62 0.04 37.79 30.83 4.01 12.39 24684.37 Germany () PTT Explor 390.00 -3.00 430.00 298.00 2.55 12.06 32619.06
Sony 4029 -5.00 4091 2700 0.49-111.11 45768.63 ConocPhil 44.95 0.26 53.17 38.80 2.33 -34.57 55601.76 PPG Inds 109.00 2.64 113.49 89.64 1.51 49.14 27925.46
ImpOil 38.45 0.23 48.72 38.08 1.61 14.36 24169.52 Allianz 171.45 0.55 177.80 118.35 4.07 13.66 87954.66
SumitomoF 4024 50.00 4768 2766.5 3.71 7.25 51147.51 United Arab Emirates (Dhs) Corning 29.54 0.44 29.72 18.88 1.96 7.82 27179.04 Praxair 133.39 1.10 133.68 106.31 2.35 24.30 38063.36
Manulife 23.64 0.31 25.57 16.43 3.35 14.53 34656.02 BASF 83.83 -0.01 94.32 63.00 3.40 17.92 86431.83
Takeda Ph 5735 28.00 5856 4098 3.13 34.11 40753.45 Emirtestele 17.20 -0.30 20.20 17.20 4.86 16.14 40725.33 Costco 179.99 -0.44 183.18 142.11 1.04 32.03 79005.03 Priceline 1892.03 14.94 1927.13 1148.06 - 41.41 92978.72
Potash 22.39 0.08 26.62 19.93 4.97 34.24 13948.21 Bayer 119.05 0.95 119.50 85.00 2.06 21.51 110512.82
TokioMarine 4768 68.00 5441 3063 2.61 11.98 32273.44 United Kingdom (p) CrownCstl 103.17 1.52 104.34 79.38 3.65 104.02 37772.35 ProctGmbl 87.50 -0.59 92.00 80.86 3.16 23.69 223791.26
RylBkC 93.59 0.22 99.90 74.64 3.72 12.31 101147.9 BMW 84.92 1.63 91.76 63.38 3.70 7.69 57386.29
Toyota 5989 57.00 7215 4917 3.83 8.50 175659.26 AscBrFd 3010 14.00 3183 1910 1.22 21.65 30742.45 CSX 54.14 -0.03 54.43 24.43 1.37 28.68 49950.71 Prudntl 106.03 1.18 114.55 66.51 2.76 10.46 45484.73
Suncor En 42.35 0.07 44.90 33.49 2.93 44.13 52431.32 Continental 200.10 2.10 210.35 158.20 1.84 14.45 44925.74
Mexico (Mex$) AstraZen 5328 94.00 5505 3680 4.15 24.95 87003.48 CVS 77.01 0.18 98.67 69.30 2.38 15.58 78457.43 PublStor 210.68 -4.67 262.74 200.65 3.62 29.63 36625.85
ThmReut 59.01 0.09 62.83 50.01 3.22 28.47 31511.53 Daimler 65.07 0.46 73.23 50.83 4.97 8.57 78145.46
AmerMvl 14.99 0.02 15.15 10.40 1.90 24.15 35943.95 Aviva 529.50 4.50 570.50 290.00 4.05 35.07 27779.19 Danaher 85.85 0.91 88.01 73.40 0.66 28.40 59590.23 Qualcomm 57.83 0.56 71.62 50.84 3.78 18.68 85440.15
TntoDom 64.62 0.22 71.31 54.20 3.42 12.99 88524.14 Deut Bank 15.61 0.04 19.97 9.90 - -19.49 36216.02
FEMSA UBD 176.50 0.83 184.10 28.35 1.44 162.64 - Barclays 211.10 1.10 267.32 121.10 1.42 16.11 46385.92 Deere 125.31 2.85 125.98 76.73 1.69 28.51 39884.06 Raytheon 163.38 -0.64 164.35 129.00 1.39 20.46 47554.21
TrnCan 63.02 0.31 65.24 54.11 3.84 111.88 40703.03 Deut Tlkm 17.28 -0.45 18.15 13.54 3.13 292.98 90720.86
WalMrtMex 42.85 0.12 46.10 34.70 1.33 25.37 40275.42 BP 470.00 3.30 521.20 349.35 6.54 -30.39 119326.94 Delphi 89.33 1.36 89.93 58.04 1.36 20.32 23930.66 Regen Pharm 467.36 8.30 470.43 325.35 - 54.78 48782.12
ValeantPh 16.95 0.55 42.25 11.20 - -2.99 4312.04 DeutsPost 32.33 -0.19 33.31 23.50 2.58 15.66 44044.55
BrAmTob 5508 -22.00 5602 4072 2.80 23.78 132486.07 Delta 49.82 0.69 52.76 32.60 1.54 8.94 36669.61 ReynoldsAm 66.95 -0.30 67.25 43.38 2.85 28.09 95518.37
E.ON 7.74 -0.05 9.72 5.99 6.35 -6.30 17385.75 Netherlands ()
China (HK$) BSkyB 993.50 2.50 1050 560.00 3.30 27.60 22032.99 Devon Energy 34.53 0.55 50.69 32.81 1.73 -1.90 18154.1 S&P Global 145.18 2.37 145.23 99.15 1.04 17.51 37427.4
Fresenius Med 85.37 0.21 86.13 70.00 0.92 20.97 29441.67 Altice 22.69 0.53 23.43 12.20 - -17.00 30420.73
AgricBkCh 3.77 -0.01 3.79 2.75 5.18 5.86 14872.67 BT 303.85 -5.70 444.15 297.40 4.76 15.91 39045.31 DiscFinServ 58.89 0.19 74.33 50.32 2.07 9.76 22389.43 Salesforce 89.70 0.06 91.81 66.43 - 473.44 63884.34
Fresenius SE 76.39 0.18 79.49 60.00 0.71 25.31 47463.23 ASML Hld 118.70 1.20 124.95 79.38 0.87 29.96 58521.81
Bk China 3.93 0.03 4.08 2.90 5.23 5.94 42176.57 Compass 1680 10.00 1696 1242.15 1.89 24.96 35644.48 Disney 107.69 -0.25 116.10 90.32 1.44 18.58 168521.83 Schlmbrg 69.69 0.10 87.84 68.23 3.00 -53.83 96832.64
HenkelKgaA 110.90 0.35 111.55 87.00 2.70 23.07 32342.15 Heineken 87.90 0.23 88.41 67.47 1.14 31.45 56835.34
BkofComm 5.98 -0.06 6.44 4.76 5.27 5.76 26870.55 Diageo 2343 16.00 2372.5 1737 2.45 26.30 76095.3 DominRes 81.06 0.29 81.30 69.51 3.61 22.57 50985.59 Sempra Energy 116.88 0.39 116.96 92.95 2.73 19.50 29317.18
Linde 173.05 3.10 174.00 116.80 1.66 30.53 36079.98 ING 14.92 0.03 15.88 8.30 4.27 13.00 65063.61
BOE Tech 1.58 0.01 2.00 1.30 1.33 20.63 40.34 GlaxoSmh 1703.5 - 1745.56 1363 4.70 49.96 108079.52 DowChem 62.66 0.70 65.42 47.51 3.03 14.85 76551.89 Shrwin-Will 336.94 5.17 339.62 239.48 1.04 26.92 31378.65
MuenchRkv 176.90 1.15 189.40 140.90 4.58 10.57 31981.9 Unilever 50.56 -0.14 51.14 36.22 2.45 28.32 97321.19
Ch Coms Cons 10.28 -0.24 11.74 7.81 2.16 8.64 5841.33 Glencore 286.05 0.95 347.00 124.55 - -70.70 53121.63 DukeEner 85.54 -0.15 87.75 72.34 4.09 21.26 59864.54 SimonProp 153.83 -0.42 229.10 152.09 4.46 25.49 48024.84
SAP 95.32 -0.12 96.00 64.94 1.19 32.43 131451.6 Norway (Kr)
Ch Evrbrght 3.67 -0.02 4.06 3.18 6.06 4.99 3235.17 HSBC 676.90 1.30 715.20 392.37 6.14 119.49 175092.39 DuPont 79.60 0.68 82.37 61.12 1.97 25.89 69015.75 SouthCpr 34.91 -0.05 39.50 24.90 0.48 40.87 26986
Siemens 126.85 -0.20 133.50 86.82 2.79 18.41 121036 DNB 143.80 0.70 148.50 90.80 3.17 13.38 27737.04
Ch Rail Cons 10.58 -0.12 11.98 8.61 1.68 8.83 2819.26 Imperial Brands 3654.5 25.50 4154 3324 4.25 34.41 45200.27 Eaton 78.32 0.94 79.31 54.30 3.04 17.70 35032.49 Starbucks 63.47 -0.15 63.78 50.84 1.46 30.45 91903.67
Volkswgn 140.60 1.15 157.40 116.05 0.08 43.17 46574.13 Statoil 147.10 0.20 163.50 123.90 5.18 -21.93 56903.17
Ch Rail Gp 6.40 -0.06 7.71 5.40 1.59 10.57 3455.82 LlydsBkg 70.16 -0.43 73.58 47.10 3.35 29.23 64952.82 eBay 34.63 0.33 35.30 22.30 - 4.86 37475.95 StateSt 82.58 1.12 85.38 50.60 1.85 15.02 31069.55
ChConstBk 6.53 0.09 6.55 4.73 4.89 6.02 201484.14 Hong Kong (HK$) Telenor 138.00 -1.50 150.90 122.50 5.57 71.29 24537.26 Ecolab 133.53 0.69 133.96 110.65 1.11 30.89 38729.76 Stryker 143.39 0.43 143.42 106.48 1.16 31.23 53594.17
Natl Grid 1050 -39.50 1252.36 969.71 4.50 17.69 46614.36
China Vanke 20.40 -0.30 24.10 14.56 4.11 9.26 3442.71 AIA 55.30 0.05 56.15 42.65 1.37 19.64 85690.9 Qatar (QR) Emerson 59.58 0.46 64.37 48.45 3.31 22.56 38398.13 Sychrony Fin 27.08 0.23 38.06 23.25 0.48 10.25 21962.24
Prudential 1757.5 21.50 1801.5 1096 2.24 23.43 58630.02
ChinaCitic 4.78 -0.03 5.50 4.40 5.19 4.82 9129.61 BOC Hold 35.20 0.05 35.30 22.00 3.65 14.66 47762.96 QatarNtBk 147.00 0.10 173.00 133.50 2.23 10.55 37288.67 EOG Res 90.81 0.50 109.37 78.04 0.76 -82.26 52421.75 Target 55.50 0.35 79.33 52.72 4.24 11.64 30619.86
RBS 258.90 -1.10 271.00 148.40 - -4.35 39666.98
ChinaLife 25.40 -0.20 26.05 16.00 1.93 31.56 24256.89 Ch OSLnd&Inv 23.45 0.05 27.85 20.15 2.52 6.52 32973.24 EquityResTP 64.69 -0.40 71.53 58.28 3.21 27.26 23751.25 TE Connect 79.82 0.97 79.89 54.54 1.91 13.72 28337.92
Russia (RUB) ReckittB 7961 23.00 8083 6496 1.85 31.04 72196.12
ChinaMBank 23.40 - 24.30 15.24 3.47 8.13 13787.12 ChngKng 58.90 0.40 59.75 44.75 2.30 12.48 28223.87 Exelon 36.59 0.28 37.70 29.82 3.61 28.73 33885.88 Tesla Mtrs 340.83 -0.18 344.88 178.19 - -71.97 55984.65
Gzprm neft 117.29 -2.99 160.62 117.24 6.95 2.74 49199.95 RELX 1680 17.00 1686 631.02 1.94 30.11 44367.32
ChinaMob 86.95 0.50 99.30 80.30 2.85 15.62 228487.96 Citic Ltd 12.26 -0.10 12.78 10.60 2.57 10.34 45771.78 ExpScripts 60.03 0.28 80.02 57.80 - 10.62 36036.78 TexasInstr 81.74 -0.75 83.24 58.61 2.09 22.50 81436.22
Lukoil 2698.5 -54.50 3582 2556 7.16 8.23 40669.69 RioTinto 3143 40.50 3718.5 1853 3.79 15.21 55982.28
ChinaPcIns 31.10 -0.10 31.60 24.25 3.67 19.77 11077.19 Citic Secs 16.20 -0.14 19.16 15.36 3.63 15.26 6067.5 ExxonMb 80.59 0.09 95.55 80.19 3.84 32.55 341481.23 TheTrvelers 124.78 -0.07 125.49 103.45 2.22 11.92 34865.51
MmcNrlskNckl 7791 -111.00 11199 7750 8.82 14.60 21845.72 RollsRoyce 885.50 18.00 895.00 588.00 1.32 -4.02 21021.56
ChMinsheng 7.81 -0.18 9.48 6.91 4.13 5.07 6949.73 CK Hutchison 101.20 -0.40 103.90 80.60 2.44 14.20 50103.26 Facebook 151.37 -0.09 153.60 108.23 - 37.33 357957.14 ThrmoFshr 173.64 0.85 174.38 139.07 0.36 30.66 67931.43
Novatek 621.90 -19.10 800.70 618.20 2.29 8.53 33458.6 RylDShlA 2111.5 11.50 2295.5 1645 7.14 44.98 121947.83
ChMrchSecs RMB 17.15 0.15 20.09 15.21 2.39 18.43 11880.34 CNOOC 8.90 - 10.88 8.75 5.33-157.26 50997.22 Fedex 196.87 3.03 201.57 145.00 0.76 26.71 52637.06 TimeWrnr 99.52 0.03 100.60 68.97 1.67 18.27 77181.49
Rosneft 300.75 -0.80 425.70 298.60 3.77 18.24 56477.9 Shire 4492 20.50 5377 2707.19 0.54 119.51 52605.01
Chna Utd Coms RMB 7.47 - 8.05 3.75 0.78 552.53 23268.35 HangSeng 165.00 0.50 165.30 127.60 3.35 21.49 40485.12 FordMtr 11.47 0.35 14.04 10.67 5.05 5.61 44852.89 TJX Cos 75.85 0.64 83.64 71.50 1.37 21.61 48792.51
Sberbank 153.12 -2.81 185.34 125.35 0.22 14.01 58568.63 StandCh 744.80 12.90 821.60 471.34 - -63.47 31610.66
ChShenEgy 19.04 0.06 19.78 11.96 1.97 14.24 8304.71 HK Exc&Clr 196.80 0.10 213.20 175.00 2.67 38.28 30922.92 Franklin 42.62 0.83 44.35 30.56 1.84 13.33 23923.31 T-MobileUS 67.50 0.08 68.88 40.50 - 33.90 56081.42
Surgutneftegas 26.68 -3.61 34.40 26.00 - -11.79 16886.25 Tesco 183.65 -0.05 219.40 143.08 - 226.73 19398.99
ChShpbldng RMB 6.21 - 8.14 5.87 - -83.91 16756.49 MTR 44.60 0.20 50.00 36.45 2.30 27.23 33830.71 GenDyn 202.76 -0.49 203.47 132.68 1.59 19.14 61169.74 UnionPac 110.72 0.42 115.15 81.96 2.15 20.52 89399.67
Saudi Arabia (SR) Vodafone 229.40 -2.10 240.10 186.50 5.49 -9.45 78793.52
ChStConEng RMB 9.59 0.14 11.45 5.09 2.12 9.70 41836.85 SandsCh 34.65 -0.30 39.30 24.60 6.00 28.08 35898.47 GenElectric 27.75 0.37 33.00 27.10 3.50 26.58 241017.31 UPS B 107.26 1.29 120.44 101.95 3.05 26.52 73877.51
AlRajhiBnk 62.25 0.25 67.50 48.60 3.73 11.75 26972.12 WPP 1747 3.00 1928.07 1204 2.77 16.18 28742.15
ChUncHK 11.30 0.12 11.58 7.70 1.77 210.90 34728.78 SHK Props 117.70 2.40 123.30 85.40 2.84 10.75 43743.21 GenMills 57.15 0.41 72.95 55.57 3.45 20.41 32923.26 USBancorp 51.21 0.32 56.61 38.48 2.21 15.04 86294.93
Tencent 271.20 3.60 280.60 167.00 0.17 47.63 329869.48 Natnlcombnk 41.60 0.30 45.00 32.00 3.39 8.55 22184.3 United States of America ($)
CNNC Intl RMB 7.80 0.08 7.83 6.58 1.18 25.44 4848.15 GenMotors 34.67 0.74 38.55 27.34 4.52 5.20 52320.89 UtdHlthcre 177.98 2.80 178.89 132.39 1.45 22.09 171507.67
SaudiBasic 97.50 -1.25 102.50 76.00 5.09 17.91 77991.69 21stC Fox A 27.48 0.36 32.60 23.33 1.35 16.24 28912.89
CSR 7.28 -0.02 7.99 6.45 2.40 16.43 4083.93 India (Rs) GileadSci 65.24 0.35 88.85 63.88 3.05 6.68 85250.96 UtdTech 121.57 0.29 122.84 96.89 2.24 18.27 97401.22
SaudiTelec 68.75 -0.25 74.00 51.00 6.01 15.38 36662.76 3M 204.09 -0.38 204.72 163.85 2.28 23.92 121890.63
Daqin RMB 8.41 -0.14 8.61 5.98 5.45 15.01 18373.42 Bhartiartl 366.90 - 401.00 283.05 0.38 37.62 22723.74 GoldmSchs 213.96 2.70 255.15 138.20 1.25 11.05 84221.25 ValeroEngy 61.85 0.38 71.40 46.88 4.17 13.12 27662.74
Singapore (S$) AbbottLb 45.81 0.15 46.02 36.76 2.35 49.88 79484.14
Gree Elec Apl 0.19 - 0.25 0.16 - -6.04 333.54 HDFC Bk 1628.6 - 1648 1144.25 0.56 33.48 64818.97 Halliburton 45.71 0.52 58.78 40.12 1.63 -11.31 39670.27 Verizon 46.33 -0.31 56.95 44.46 5.12 15.02 188997.18
DBS 20.65 0.18 21.18 14.72 2.91 12.42 37883.04 Abbvie 66.46 0.44 68.12 55.06 3.58 17.54 105773.78
GuosenSec RMB 13.04 -0.31 18.94 12.39 4.69 21.70 4206.33 Hind Unilevr 1095.35 - 1099.45 781.95 1.54 51.65 36731.16 HCA Hold 83.25 1.34 91.03 67.00 - 10.98 30544.81 VertexPharm 126.92 3.32 127.17 71.46 - 175.74 31611.81
JardnMt US$ 64.92 1.03 67.27 52.90 2.33 9.31 46930.49 Accenture 124.17 -0.30 126.53 108.66 1.92 17.82 82216.9
HaitongSecs 12.98 -0.08 15.24 11.98 4.10 15.04 5679.8 HsngDevFin 1583.75 - 1604 1182.15 0.93 25.51 39000.33 Hew-Pack 18.89 0.13 19.58 11.48 2.77 11.68 31987.95 VF Cp 53.75 -0.05 65.28 48.05 2.97 18.52 21524.56
JardnStr US$ 41.87 -0.10 43.78 28.45 0.72 8.59 46377.95 Adobe 141.10 -0.76 143.48 90.35 - 51.95 69801.89
Hngzh HikVDT RMB 27.95 1.45 40.16 20.41 1.70 32.31 19873.06 ICICI Bk 320.10 - 327.40 221.10 1.55 22.11 28901.56 HiltonWwde 66.96 0.49 67.50 43.85 1.20 94.07 22015.19 Viacom 34.86 0.07 46.72 33.44 3.99 9.72 12281.19
OCBC 10.56 0.07 10.65 8.22 3.49 12.20 31867.61 AEP 71.88 0.10 71.94 57.89 3.30 48.72 35344.26
Hunng Pwr 6.15 -0.07 6.25 4.43 8.95 9.38 3709.97 Infosys 971.40 - 1279.3 901.00 2.61 15.34 34570.28 HomeDep 154.01 0.50 160.86 119.20 1.84 23.29 184127.42 Visa Inc 94.83 -0.40 95.53 73.25 0.66 45.73 175079.92
SingTel 3.80 0.04 4.36 3.59 4.65 15.75 44769.02 Aetna 146.75 1.89 147.64 104.59 0.70 44.17 48676.98
IM Baotou Stl RMB 2.15 -0.04 2.37 1.96 - 115.52 4973.69 ITC 314.20 - 319.85 222.00 1.41 36.26 59134.8 Honywell 133.23 0.24 135.00 105.25 1.92 20.58 101566.31 Walgreen 81.28 0.26 88.00 76.26 1.89 20.15 87859.69
UOB 23.22 0.24 24.02 17.41 3.09 11.82 27411.43 Aflac 75.62 0.24 76.88 66.50 2.29 11.92 30009.54
In&CmBkCh 5.30 0.09 5.30 4.03 5.18 5.90 59037.31 L&T 1792.8 - 1833.95 1295.1 0.79 37.64 25923.52 HumanaInc 234.74 2.48 235.98 150.00 0.56 23.03 33876.49 WalMartSto 79.25 0.65 79.44 65.28 2.59 17.64 240250.83
AirProd 144.63 0.57 150.45 124.02 2.52 20.32 31489.49
IndstrlBk RMB 16.58 0.03 17.58 14.99 3.75 5.75 46420.64 OilNatGas 174.00 - 211.80 138.00 1.93 18.07 34597.12 South Africa (R) IBM 152.30 -0.33 182.79 142.50 3.79 12.15 143085.38 WellsFargo 51.51 0.37 59.99 43.55 3.04 12.48 257386.86
Alexion 99.94 1.91 157.02 96.18 - 46.13 22442.18
Kweichow RMB 449.28 6.34 456.48 263.01 1.40 30.86 82937.97 RelianceIn 1328.25 - 1467.75 930.00 - 12.81 66912.77 Firstrand 48.25 -1.06 54.46 41.50 4.64 11.40 20872.01 IllinoisTool 143.00 1.78 143.69 98.32 1.80 23.29 49399.5 Williams Cos 28.95 0.35 32.69 19.60 6.06 -48.64 23916.52
Allegran 225.84 2.09 261.27 184.50 0.32 -20.63 75768.49
Midea 1.71 -0.01 1.87 1.62 6.14 22.96 47.19 SBI NewA 287.45 - 315.30 195.40 0.90 49.92 36118.47 MTN Grp 116.25 -1.25 151.70 104.76 9.20 -81.54 16891.95 Illumina 179.03 1.67 189.48 119.37 - 35.06 26138.67 Yahoo 50.53 0.21 51.23 35.05 - -1632.65 48417.8
Allstate 86.20 0.23 86.63 65.27 1.60 17.68 31421.46
New Ch Life Ins 42.35 0.30 42.85 25.50 - 22.40 5620.55 SunPhrmInds 507.45 - 854.95 492.65 0.20 17.06 18863.85 Naspers N 2695 -20.56 2846.5 1925.98 0.14 107.93 91083.47 Intcntl Exch 60.25 0.06 61.98 48.15 1.18 24.35 35672.02 Yum!Brnds 72.92 0.28 73.09 56.80 2.45 26.08 25392.97
Alphabet 986.01 -1.08 999.60 672.66 - 33.91 293464.97
PetroChina 5.17 -0.02 6.38 4.92 1.05 29.54 13999.33 Tata Cons 2553.6 - 2744.8 2051.9 1.87 18.67 77959.25 South Korea (KRW) Intel 35.89 -0.22 38.45 30.44 2.99 15.06 169006.01 Venezuela (VEF)
Altria 74.79 -0.65 76.55 60.82 2.66 30.08 144467.76
PingAnIns 50.45 0.50 51.80 32.50 1.28 11.95 48220.9 Indonesia (Rp) HyundMobis 273000-1500.00 293500 212000 1.33 12.10 23686.33 Intuit 140.95 0.31 141.37 103.03 0.93 40.39 36113.78 Bco de Vnzla 750.00 - 800.00 93.00 - - 1362.57
Amazon 995.93 1.31 1001.2 682.12 - 181.79 476030.14
PngAnBnk RMB 9.19 -0.01 10.26 8.52 1.41 7.05 22847.75 Bk Cent Asia 17150 - 18550 12625 1.05 19.44 31744.31 KoreaElePwr 44000 1300 63600 40050 4.36 4.13 25176.18 John&John 128.41 0.16 129.00 109.32 2.57 20.92 345915.11 Bco Provncl 10400 - 10400 2200 - 15.74 558.61
AmerAir 49.08 0.67 50.64 24.85 0.84 11.52 24176.26
Pwr Cons Corp RMB 8.00 0.06 9.00 5.40 0.98 16.44 11285.95 SK Hynix 56400 -600.00 58800 27400 1.10 9.38 36596.4 JohnsonCn 41.98 0.22 46.17 37.31 2.79 -30.01 39381.8 Mrcntl Srvcs 31200 50.00 31200 4500 0.06 55.61 946.20
Israel (ILS) AmerExpr 77.59 0.65 82.00 57.15 1.66 13.57 69348.33
SaicMtr RMB 30.52 0.45 30.54 19.60 4.54 10.32 49449.67 SmsungEl 2234000-1000.00 2361000 1295000 1.64 12.31 260183.98 JPMrgnCh 82.67 0.52 93.98 57.05 2.21 14.35 293712.78
TevaPha 101.50 0.20 217.70 100.60 4.72 16.66 28907.29 AmerIntGrp 63.88 0.25 67.47 48.41 1.93 98.96 58904.82
ShenwanHong 0.30 -0.01 0.35 0.16 - -4.99 335.65 Spain () Kimb-Clark 128.74 -0.99 138.87 111.30 2.99 20.59 45693.45 Closing prices and highs & lows are in traded currency (with variations for that
Italy () AmerTower 131.56 0.37 137.12 99.72 1.70 61.60 55914.24
ShgPdgBk RMB 12.92 0.08 13.52 11.16 3.12 6.86 41045.11 KinderM 18.96 0.20 23.36 17.07 4.64-119.32 42327.11 country indicated by stock), market capitalisation is in USD. Highs & lows are
Enel 4.78 0.02 4.83 3.54 3.33 16.58 54575.04 BBVA 7.22 -0.04 7.89 4.50 5.04 12.88 54011.95 Amgen 155.92 0.68 184.21 133.64 2.75 14.35 114663.43
Sinopec Corp 6.40 0.01 6.57 5.08 2.56 11.50 20955.97 Kraft Heinz 92.09 -0.11 97.77 79.69 2.66 31.76 112131.82 based on intraday trading over a rolling 52 week period.
ENI 14.26 0.17 15.92 12.18 5.58 -5.39 58174.37 BcoSantdr 5.79 0.01 6.35 3.15 3.48 14.02 94778.8 Anadarko 51.22 0.69 73.33 48.67 1.21 -5.18 28700.57
Sinopec Oil RMB 3.51 -0.21 4.51 3.02 - -3.09 1453.7 Kroger 29.95 0.17 37.97 28.29 1.54 14.25 27332.47 ex-dividend
Generali 14.20 0.15 16.00 9.76 4.97 10.97 24895.52 CaixaBnk 4.15 -0.06 4.47 1.82 3.55 23.55 27831.39 Anthem 185.97 3.62 187.98 114.85 1.38 21.88 49279.49
Denmark (kr) Iberdrola 7.11 0.01 7.16 4.80 5.74 17.07 51544.78 L Brands 52.50 0.90 79.67 43.04 4.69 12.86 14952.48 ex-capital redistribution
IntSPaolo 2.57 0.02 2.90 1.52 5.34 21.39 45790.38 Aon Cp 131.15 0.24 131.62 100.55 1.03 24.34 34370.48
DanskeBk 248.60 -0.10 259.30 161.80 3.56 11.74 35144.47 Inditex 36.31 -0.09 36.65 27.18 1.31 35.83 127033.93 LasVegasSd 61.52 2.39 63.38 41.45 4.85 25.93 48740.33 # price at time of suspension
Luxottica 54.00 0.05 56.90 39.92 1.62 31.10 29366.11 Apple 152.91 0.15 156.65 91.50 1.54 17.27 797222.21
MollerMrsk 12670 60.00 12880 7775 3.63 -20.36 19234.97 Repsol 14.99 0.08 15.22 9.60 4.11 13.58 25180 LibertyGbl 31.18 0.60 39.85 26.16 - 13.62 7394.63
Unicred 15.46 -0.11 30.80 11.93 3.82 -1.57 38626.01 ArcherDan 41.48 -0.10 47.88 39.01 3.03 17.04 23575.45
NovoB 284.40 3.00 384.80 218.20 3.28 19.43 84226.65 Telefonica 9.94 0.03 10.63 7.45 7.32 21.52 56223.82 Lilly (E) 79.90 0.33 86.72 64.18 2.65 37.41 88155.24
AT&T 38.73 0.20 43.89 36.10 5.20 17.66 238118.19

FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
ChinaPcIns 31.10 31.20 -0.10 -0.32 2.25 7.8 8.17 IM Baotou Stl 2.15 2.19 -0.04 -1.83 -0.81 -27.4 -28.81 Jun 01 date Coupon S* M* F* price yield yield yield US Jun 01 date Coupon S* M* F* price yield yield yield US
Tesla Mtrs 340.83 341.01 -0.18 -0.05 24.00 7.6 5.65 Telefonica 9.94 9.91 0.03 0.28 -3.07 -23.6 -5.45 High Yield US$ US$
VertexPharm 126.92 123.60 3.32 2.69 8.32 7.0 5.22 ShgPdgBk 12.92 12.84 0.08 0.62 -2.55 -16.5 10.43 Navient Corporation 03/20 8.00 BB- Ba3 BB 110.01 4.22 0.02 -1.18 2.91 Citigroup Inc. 01/28 6.63 BBB+ Baa1 A 120.85 4.22 0.01 0.05 1.99
L&T 1792.80 1792.80 0.00 0.00 108.35 6.4 2.46 SunPhrmInds 507.45 507.45 0.00 0.00 -96.05 -15.9 -20.95 High Yield Euro SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 110.97 4.73 0.01 -0.04 2.51
GenMotors 34.67 33.93 0.74 2.18 2.07 6.3 1.53 Novatek 621.90 641.00 -19.10 -2.98 -65.10 -9.5 -10.43 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 120.49 4.48 0.01 -0.06 2.26
LasVegasSd 61.52 59.13 2.39 4.04 3.57 6.2 3.54 Unicred 15.46 15.57 -0.11 -0.71 -1.33 -7.9 3.48 NationsBank Corp. 03/28 6.80 BBB Baa3 A- 120.26 4.46 0.01 -0.27 2.24
Hunng Pwr 6.15 6.22 -0.07 -1.13 0.35 6.0 14.53 Sberbank 153.12 155.93 -2.81 -1.80 -12.58 -7.6 -7.26 Emerging US$ GTE Corporation 04/28 6.94 BBB+ Baa2 A- 124.62 4.15 0.01 0.12 1.92
ChStConEng 9.59 9.45 0.14 1.48 0.53 5.8 2.46 Deut Bank 15.61 15.58 0.04 0.22 -1.24 -7.4 -7.36 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 United Utilities PLC 08/28 6.88 BBB- Baa1 A- 120.18 4.61 0.01 -0.17 2.38
FordMtr 11.47 11.12 0.35 3.13 0.61 5.6 0.44 MmcNrlskNckl 7791.00 7902.00 -111.00 -1.40 -608.00 -7.2 -10.93 Brazil 01/18 8.00 BB Ba2 BB 103.05 3.06 0.08 -0.09 1.75
Peru 03/19 7.13 BBB+ A3 BBB+ 109.86 1.61 0.01 -0.15 0.30 Euro
Hind Unilevr 1095.35 1095.35 0.00 0.00 57.30 5.5 17.16 Sinopec Oil 3.51 3.72 -0.21 -5.65 -0.26 -6.9 8.00 AT&T Inc. 12/29 2.60 BBB+ Baa1 A- 104.54 2.18 0.01 0.12 -
MediaTek 228.00 230.00 -2.00 -0.87 11.50 5.3 5.07 SocGen 47.14 46.67 0.47 1.01 -3.03 -6.0 -6.11 Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84
Brazil 01/22 12.50 BB Ba2 BB 112.15 9.23 0.03 -0.11 7.45 AT&T Inc. 12/29 2.60 BBB+ Baa1 A- 104.60 2.17 0.00 0.00 -
GlaxoSmh 1703.50 1703.50 0.00 0.00 85.50 5.3 9.89 Firstrand 48.25 49.31 -1.06 -2.15 -3.04 -5.9 -3.21 Citigroup Inc. 02/30 4.25 BBB Baa3 A- 117.43 2.29 0.01 0.02 -
Softbank 8946.00 9003.00 -57.00 -0.63 434.00 5.1 6.07 Cred Agr 13.71 13.64 0.07 0.51 -0.85 -5.8 0.44 Poland 03/23 3.00 BBB+ A2 A- 101.35 2.76 0.02 -0.29 0.99
Colombia 03/23 2.63 BBB Baa2 BBB 97.01 3.22 0.02 -0.07 1.45 HBOS plc 03/30 4.50 BBB- Baa2 A- 117.31 2.46 0.01 -0.26 -
ITC 314.20 314.20 0.00 0.00 14.30 4.8 13.02 BNP Parib 62.99 62.82 0.17 0.27 -3.57 -5.4 -2.76
Turkey 03/23 3.25 - Ba1 BB+ 80.88 7.36 -0.05 0.18 5.58 Yen
ChMrchSecs 17.15 17.00 0.15 0.88 0.77 4.7 7.59 Shire 4492.00 4471.50 20.50 0.46 -246.00 -5.2 -2.66
Russia 05/26 4.75 - - BBB- 105.22 4.09 0.02 -0.01 1.87 Enagas Transportes, S.A.U. 09/39 3.23 A- Baa2 A- 106.57 2.85 0.00 0.01 -
Panasonic 1455.50 1420.50 35.00 2.46 64.00 4.6 9.50 Nppn Stl 2367.50 2356.50 11.00 0.47 -126.50 -5.1 -5.60
Pwr Cons Corp 8.00 7.94 0.06 0.76 0.35 4.6 -3.85 SimonProp 153.83 154.25 -0.42 -0.27 -6.87 -4.3 -8.75 Turkey 03/27 6.00 - Ba1 BB+ 107.14 5.13 0.02 -0.05 2.90 Sterling
Perrigo 75.06 72.85 2.21 3.03 3.21 4.5 1.24 Petrobras 13.86 13.62 0.24 1.76 -0.60 -4.1 -3.48 Emerging Euro Electricite de France (EDF) 05/28 6.25 A A3 A- 134.53 2.60 0.02 -0.13 0.37
SFR Group 32.17 31.37 0.80 2.55 1.37 4.4 7.02 LlydsBkg 70.16 70.59 -0.43 -0.61 -2.94 -4.0 1.46 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 HSBC Holdings plc 08/28 2.63 A A1 AA- 101.06 2.51 0.02 -0.21 0.29
L Brands 52.50 51.60 0.90 1.74 2.23 4.4 1.22 H&M 217.50 216.50 1.00 0.46 -9.00 -4.0 -0.87 Mexico 02/20 5.50 BBB+ A3 BBB+ 113.87 0.33 0.00 -0.04 -0.97 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poors, M -
Mexico 04/23 2.75 BBB+ A3 BBB+ 107.96 1.33 0.01 -0.02 -0.44 Moodys, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BB+ Baa2 BBB- 108.54 2.11 0.01 0.01 -0.12
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poors, M - Moodys, F - Fitch.

INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
Jun 01 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return Jun 01 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.50-0.75 14-12-2016 1.00 0.50-0.75 0.25-0.50 Index change change change 1 month 1 year VIX 10.23 -0.18 10.41 26.72 9.56 Jun 01 Price Yield Day Week Month Year High Low m
US Prime 4.00 16-12-2008 3.75 3.50 3.50 Markit IBoxx VXD 10.18 -0.12 10.30 23.69 3.59 Tr 8.75pc '17 102.05 0.02 100.00 100.00 -300.00 -94.59 105.16 100.00 11.14
US Discount 0.75 16-12-2015 0.75 1.00 0.75 ABF Pan-Asia unhedged 182.17 0.41 1.32 5.17 1.32 1.53 VXN 12.72 -0.22 12.94 27.10 9.75 Tr 5pc '18 103.73 0.13 30.00 44.44 333.33 -56.67 108.38 103.73 35.24
Euro Repo 0.00 10-09-2014 0.05 0.05 0.05 Corporates( ) 343.11 -0.17 1.33 3.94 1.33 10.85 VDAX - - - - - Tr 4.5pc '19 107.78 0.09 28.57 28.57 200.00 -80.00 111.97 107.78 36.35
UK Repo 0.25 05-03-2009 0.25 0.50 0.50 Corporates($) 272.12 0.20 1.00 3.37 1.00 3.37 CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 112.86 0.09 12.50 0.00 12.50 -86.57 117.02 112.86 33.31
Japan O'night Call 0.00-0.00 05-10-2010 0.00 0.00-0.10 0.00-0.10 Corporates() 223.86 0.02 0.39 1.16 0.39 2.79 Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 104.58 0.24 9.09 0.00 -4.00 -73.63 106.04 102.80 32.46
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov() 231.50 0.01 0.54 -0.51 0.54 -0.55 Tr 4pc '22 117.46 0.31 6.90 -8.82 -3.13 -67.37 121.31 116.43 37.95
Gilts( ) 324.86 -0.28 0.50 2.45 0.50 7.07 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 132.18 0.73 2.82 -3.95 -2.67 -45.11 138.11 129.09 35.08
INTEREST RATES: MARKET Global Inflation-Lkd 258.41 0.15 0.35 4.55 0.35 3.65 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 101.34 1.11 1.83 -3.48 -1.77 -31.06 138.26 99.31 5.43
Over Change One Three Six One Markit iBoxx Non-Gilts 337.96 -0.16 1.12 3.55 1.12 9.46 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 138.27 1.41 0.71 -2.08 -2.76 -27.69 148.92 131.34 35.44
Jun 01 (Libor: May 31) night Day Week Month month month month year Overall ($) 236.75 0.18 0.69 2.52 0.69 2.52 Australia 10/19 2.75 102.66 1.61 0.01 -0.04 -0.20 -0.05 Tr 4.25pc '36 143.20 1.58 1.28 -1.25 -3.07 -25.47 155.77 134.98 29.76
US$ Libor 0.92889 -0.002 -0.002 0.010 1.06033 1.21000 1.41878 1.72372 Overall( ) 325.71 -0.24 0.68 2.77 0.68 7.76 11/28 2.75 102.10 2.54 0.01 -0.03 -0.27 0.00 Tr 4.5pc '42 157.97 1.69 1.81 -0.59 -2.31 -23.18 174.65 147.27 26.64
Euro Libor -0.42714 0.003 -0.001 0.000 -0.40214 -0.37000 -0.28571 -0.16814 Overall() 227.82 0.01 0.45 -0.09 0.45 0.17 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 3.75pc '52 157.40 1.61 2.55 0.00 -1.83 -23.33 177.28 143.60 23.59
Libor 0.22250 -0.001 -0.001 -0.001 0.25144 0.29381 0.43763 0.63450 Treasuries ($) 223.52 0.18 0.54 2.01 0.54 2.01 04/27 0.50 99.20 0.58 -0.01 -0.06 -0.07 0.00 Tr 4pc '60 176.89 1.54 2.67 0.00 -1.91 -24.14 201.27 159.04 23.21
Swiss Fr Libor 0.000 -0.78740 -0.72960 -0.66180 -0.49120 FTSE Belgium 06/18 0.75 100.86 -0.11 0.00 0.00 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per 100 nominal of stock. Red yield: Gross redemption yield.
Yen Libor -0.004 -0.03243 -0.01579 0.02300 0.12543 Sterling Corporate () 118.44 -0.26 - - 0.65 4.47 06/27 0.80 101.41 0.65 0.01 -0.07 -0.13 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Euro Euribor -0.001 -0.37400 -0.32900 -0.25400 -0.13100 Euro Corporate () 107.34 -0.10 - - 0.06 -0.87 Canada 08/19 0.75 100.02 0.74 0.01 -0.01 0.00 0.00
Sterling CDs
US$ CDs
0.000
0.000
0.20000
0.97000
0.28000
1.13000
0.41500
1.31000
Euro Emerging Mkts () 797.30 -6.54 - - -0.37 -8.81 06/27 1.00 95.94 1.44 0.02 -0.02 -0.10 0.00 GILTS: UK FTSE ACTUARIES INDICES
Eurozone Govt Bond 112.07 -0.38 - - 0.16 -3.45 Denmark 11/20 0.25 102.28 -0.40 0.00 0.00 0.00 0.00
Euro CDs 0.000 -0.43500 -0.39500 -0.29500 11/27 0.50 99.29 0.57 0.01 0.00 -0.09 0.00 Price Indices Day's Total Return Return
CREDIT INDICES Day's Week's Month's Series Series Fixed Coupon Jun 01 chg % Return 1 month 1 year Yield
Short 7 Days One Three Six One Index change change change high low Finland 09/19 1.75 100.51 1.53 0.00 -0.03 -0.06 0.20
07/28 2.75 115.37 1.45 0.00 0.00 0.00 0.00 1 Up to 5 Years 96.61 -0.06 2433.60 -0.03 1.36 0.21
Jun 01 term notice month month month year Markit iTraxx 2 5 - 10 Years 186.10 -0.21 3506.61 0.18 4.07 0.74
Euro -0.50 -0.35 -0.50 -0.35 -0.51 -0.36 -0.47 -0.32 -0.37 -0.22 -0.36 -0.11 Crossover 5Y 369.26 -12.07 35.21 40.34 390.04 288.69 France - - - - - - -
3 10 - 15 Years 217.44 -0.33 4261.52 0.33 6.13 1.19
Sterling 0.15 0.25 0.15 0.25 0.23 0.33 0.34 0.49 0.45 0.60 Europe 5Y 85.00 -1.98 7.21 7.01 90.43 67.59 11/20 0.25 102.43 -0.44 0.00 0.00 0.00 0.00
4 5 - 15 Years 193.48 -0.25 3692.67 0.24 4.71 0.94
Swiss Franc - - - - - - - - - - - - Japan 5Y 70.05 -2.51 2.21 -0.87 93.03 64.22 10/22 2.25 112.93 -0.14 0.00 0.00 0.00 0.00
5 Over 15 Years 342.87 -0.52 5185.79 0.67 10.15 1.64
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 111.86 -3.89 10.86 12.50 121.66 80.36 05/27 1.00 102.53 0.74 0.01 -0.06 -0.09 0.00
7 All stocks 183.62 -0.31 3595.56 0.34 5.82 1.43
US Dollar 0.90 1.00 0.95 1.05 1.00 1.10 1.10 1.20 1.25 1.35 1.50 1.60 Germany 10/19 0.25 102.29 -0.71 0.00 0.00 0.00 0.00
Markit CDX 08/23 2.00 113.92 -0.23 0.00 0.00 0.00 0.00
Japanese Yen 0.00 0.20 -0.10 0.10 -0.40 -0.10 -0.30 0.00 -0.25 0.05 -0.20 0.10 Day's Month Year's Total Return Return
Emerging Markets 5Y 198.09 -3.26 -11.46 -11.68 218.09 197.56 02/27 0.25 99.44 0.31 0.00 -0.05 -0.09 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Index Linked Jun 01 chg % chg % chg % Return 1 month 1 year
Nth Amer High Yld 5Y 328.29 0.17 -17.13 -10.17 353.95 327.35 08/46 2.50 133.17 1.15 0.00 -0.04 -0.02 0.31
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 1 Up to 5 Years 314.73 -0.04 -0.28 1.84 2471.69 -0.07 3.74
Nth Amer Inv Grade 5Y 63.53 0.28 -4.09 -3.35 69.24 62.53 Greece 04/19 4.75 98.27 5.74 0.01 0.04 0.21 -1.58
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 2 Over 5 years 721.46 0.10 -1.17 22.60 5371.03 -1.05 23.25
02/27 3.00 83.80 6.03 0.01 0.07 0.14 -1.25 3 5-15 years 482.45 -0.20 -0.30 10.47 3727.02 -0.09 11.64
Ireland 10/19 5.90 115.17 -0.45 0.00 0.00 0.00 0.00 4 Over 15 years 927.91 0.20 -1.44 27.22 6761.32 -1.36 27.67
05/26 1.00 101.90 0.78 0.02 -0.03 -0.07 -0.02 5 All stocks 652.07 0.09 -1.10 20.19 4926.58 -0.97 20.97
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/19 0.05 99.80 0.14 0.02 0.03 -0.09 0.00
11/21 0.35 98.43 0.71 0.03 0.10 -0.05 0.00 Yield Indices Jun 01 May 31 Yr ago Jun 01 May 31 Yr ago
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
06/27 2.20 99.71 2.25 0.06 0.13 -0.01 0.00 5 Yrs 0.36 0.33 0.76 20 Yrs 1.74 1.71 2.13
Crude Oil Jun 48.39 0.13 Corn Jul 372.50 1.00 Apr 21 Apr 21 Prev return stock Market stocks
03/47 2.70 87.91 3.37 0.06 0.19 0.06 0.80 10 Yrs 1.09 1.06 1.48 45 Yrs 1.55 1.53 1.99
Brent Crude Oil 51.17 0.02 Wheat Jul 429.00 -0.75 Can 4.25%' 21 121.46 -0.361 -0.372 0.29 5.18 75355.91 7
Japan 05/19 0.10 100.51 -0.16 0.00 0.00 0.00 0.00 15 Yrs 1.56 1.53 1.94
RBOB Gasoline Jun 1.61 0.01 Soybeans Jul 919.75 3.75 Fr 2.25%' 20 112.37 -1.431 -1.458 0.13 20.31 222459.38 16
03/22 0.10 101.04 -0.11 0.00 0.00 0.00 0.00
Heating Oil Jun 1.58 0.00 Soybeans Meal Jul 299.20 0.90 Swe 0.25%' 22 114.09 -1.848 -1.830 0.17 30.03 229025.37 7
03/27 0.10 100.52 0.05 0.00 0.00 0.00 0.00 inflation 0% inflation 5%
Natural Gas Jun 3.11 0.03 Cocoa (ICE Liffe)X Jul 1570.00 -16.00 UK 2.5%' 20 373.10 -2.880 -2.849 0.27 6.58 653041.71 27
03/47 0.80 99.62 0.82 0.02 0.00 0.00 0.00 Real yield Jun 01 Dur yrs Previous Yr ago Jun 01 Dur yrs Previous Yr ago
Ethanol - - Cocoa (ICE US) Jul 2017.00 -25.00 UK 2.5%' 24 371.80 -2.205 -2.162 0.74 6.82 653041.71 27
Netherlands 01/20 0.25 102.42 -0.66 0.00 0.00 0.00 0.00 Up to 5 yrs -2.43 1.96 -2.45 -1.25 -3.17 1.96 -3.19 -1.86
Uranium Jun 18.10 0.00 Coffee(Robusta)X Jul 1983.00 -6.00 UK 2%' 35 273.88 -1.791 -1.774 1.49 9.08 653041.71 27
07/27 0.75 102.32 0.51 0.00 -0.06 -0.08 0.00 Over 5 yrs -1.70 24.65 -1.70 -0.93 -1.73 24.74 -1.73 -0.96
Carbon Emissions - - Coffee (Arabica) Jul 129.50 0.55 US 0.625%' 21 103.72 -0.249 -0.260 0.21 35.84 1253376.13 38
White SugarX 422.80 -12.30 New Zealand 04/20 3.00 102.58 2.07 -0.01 -0.04 -0.22 -0.08 5-15 yrs -1.94 8.46 -1.96 -0.92 -2.06 8.47 -2.09 -1.04
Diesel - - US 3.625%' 28 133.26 0.507 -0.260 0.58 16.78 1253376.13 38
Sugar 11 15.01 -0.12 04/27 4.50 115.13 2.74 -0.02 -0.11 -0.30 0.10 Over 15 yrs -1.68 29.73 -1.68 -0.93 -1.70 29.77 -1.69 -0.95
Unleaded (95R) - - Representative stocks from each major market Source: Merill Lynch Global Bond Indices Local currencies. Total market
Norway 05/19 4.50 107.60 0.59 0.01 0.00 -0.08 0.00 All stocks -1.71 22.93 -1.70 -0.93 -1.74 23.04 -1.74 -0.97
Base Metals ( LME 3 Months) Cotton Jul 76.93 -0.03 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium 1935.00 4.50 Orange Juice Jul 131.90 -0.95 02/27 1.75 102.25 1.50 0.00 0.00 -0.15 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
amount.
Aluminium Alloy 1670.00 -10.00 Palm Oil - - Portugal 06/19 4.75 109.15 0.22 -0.01 -0.04 -0.12 -0.82
Copper 5704.00 11.00 Live Cattle Jun 124.60 0.00 BONDS: TEN YEAR GOVT SPREADS 04/27 4.13 109.59 2.98 -0.06 -0.20 -0.43 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Lead 2105.00 -12.00 Feeder Cattle Aug 152.70 2.85 Spain 01/19 0.25 100.81 -0.23 0.00 0.00 0.00 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Nickel 8820.00 -130.00 Lean Hogs Jun 81.93 0.00 Spread Spread Spread Spread 04/27 1.50 99.55 1.55 0.03 -0.03 -0.04 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Tin 20410.00 40.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.45 1.43 0.01 -0.01 -0.03 0.28 loss arising from the reliance on or use of the listed information. For all queries e-mail
Zinc 2566.00 -34.50 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 11/26 1.00 105.15 0.44 -0.02 0.00 -0.16 -0.29 ft.reader.enquiries@morningstar.com
Precious Metals (PM London Fix) May 31 Month Year Australia 2.54 2.23 0.31 Italy 2.25 1.94 0.02 Switzerland 07/20 2.25 109.66 -0.83 0.00 0.00 0.00 0.00
Gold 1264.85 -1.35 S&P GSCI Spt 379.53 -0.81 2.35 Austria 0.58 0.27 -1.64 Japan 0.05 -0.26 -2.18 06/27 3.25 134.84 -0.18 0.00 0.00 0.00 0.00 Data provided by Morningstar | www.morningstar.co.uk
Silver (US cents) 1713.00 -18.00 DJ UBS Spot 82.60 -1.67 -3.20 Belgium 0.65 0.35 -1.57 Netherlands 0.51 0.21 -1.71 United Kingdom 07/19 1.75 103.45 0.13 0.00 0.03 0.03 -0.45
Platinum 947.00 6.00 R/J CRB TR 181.57 -0.91 -2.86 Canada 1.44 1.13 -0.79 Norway 1.50 1.19 -0.72 07/22 0.50 99.91 0.52 0.03 0.04 -0.02 0.00
Palladium 814.00 17.00 M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark 0.57 0.26 -1.65 Portugal 2.98 2.68 0.76 07/27 1.25 100.90 1.16 0.02 0.04 -0.04 0.00
Bulk Commodities UBS Bberg CMCI TR 13.49 -1.91 1.38 Finland 1.45 1.14 -0.78 Spain 1.55 1.24 -0.67 07/47 1.50 94.86 1.72 0.02 0.06 -0.06 0.00
Iron Ore (Platts) 56.40 -1.00 LEBA EUA Carbon 5.04 0.00 -13.55 France 0.74 0.43 -1.49 Switzerland -0.18 -0.49 -2.40 United States 05/19 1.25 99.89 1.31 0.02 0.01 0.00 0.00
Iron Ore (The Steel Index) 55.20 -1.00 LEBA CER Carbon 0.23 -8.00 -42.50 Germany 0.31 0.00 -1.92 United Kingdom 1.16 0.85 -1.07 05/22 1.75 99.88 1.77 0.01 -0.02 0.00 0.00
GlobalCOAL RB Index 74.00 0.00 LEBA UK Power 2025.00 115.43 77.01 Greece 6.03 5.73 3.81 United States 2.22 1.92 0.00 05/27 2.38 101.34 2.22 0.01 -0.03 0.00 0.00
Baltic Dry Index 850.00 -28.00 Ireland 0.78 0.47 -1.44 05/47 3.00 102.39 2.88 0.01 -0.04 0.00 0.00
Sources: NYMEX, ECX/ICE, CBOT, X ICE Liffe, ICE Futures, CME, LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information Data provided by SIX Financial Information
unless otherwise stated.
Friday 2 June 2017 FINANCIAL TIMES 21

FINANCIAL TIMES SHARE SERVICE

Main Market
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence CtyLonInv 400.63 -3.38 414.00 285.00 5.99 13.27 22.0 TedBaker 2410 -41.00 3150 2069 2.05 23.06 111.4 Mining PrimyHth 112.25 -0.25 115.50 100.58 4.57 15.38 870.6 Hays 166.40 -0.50 176.30 91.10 1.68 19.88 3359.8
Avon Rubber 1097 -3.00 1141.75 792.00 0.86 17.30 22.0 CloseBrs 1608 7.00 1715 975.00 3.54 12.34 263.8 AngloAmer 1034 2.50 1529.01 572.00 - 10.39 5536.7 Redefine 38.09 -0.35 46.92 34.39 8.40 16.56 4999.8 Homesve 747.00 12.00 803.00 441.25 1.70 37.92 377.3
DBAG 42.33 0.96 42.83 25.03 2.79 10.15 22.5
Industrial Engineering SEGRO 504.00 1.00 512.00 331.40 3.13 9.40 2123.0 HowdenJny 458.40 5.40 516.50 339.70 2.27 15.59 2278.9
BAE Sys 673.00 7.50 677.00 464.80 3.14 23.45 9106.8 AngloPacif 112.25 -0.25 134.50 74.00 5.35 7.20 173.3
Hargr Lans 1406 8.00 1454 1056 1.57 37.69 824.9 Bodycote 780.00 2.50 845.50 500.00 1.96 22.16 287.7 Shaftbry 972.00 - 1008 650.00 1.51 22.40 516.8 Intertek 4338 39.00 4338 3037.39 1.26 27.67 600.2
Chemring 181.00 0.50 208.00 90.25 - 75.42 88.1 AnGoldA R 147.29 -1.21 317.75 125.02 - 72.53 3862.0
HBM Hlth SFr 116.40 0.50 118.00 98.30 4.71 -8.98 10.8 Castings 476.50 -13.50 490.00 388.10 2.88 14.60 13.4 Town Ctr 297.00 2.25 325.00 260.00 3.52 13.26 2.9 MngCnslt 8.40 -0.05 25.00 3.00 - -4.20 110.5
Cobham 136.10 2.10 177.80 102.50 5.71 -2.97 10371.4 Barrick C$ 21.99 -0.35 30.45 18.52 0.57 13.06 953.6
Indvardn SKr 206.10 0.70 215.60 128.00 2.44 3.92 361.0 Fenner 315.25 2.25 351.25 138.00 0.95 225.18 574.1 TritaxBBOX 147.80 0.30 149.10 104.70 5.18 14.06 3906.8 MearsGp 510.00 -3.50 540.00 346.75 2.20 21.79 45.9
Meggitt 505.00 3.00 507.00 361.80 2.79 22.05 3462.2 BisichMg 79.50 - 83.00 52.00 5.03 17.75 7.7
ICG 886.00 3.50 940.00 500.96 2.92 15.46 1030.4 Goodwin 1614 -16.00 2350 1510 2.62 14.77 1.8 Wkspace 865.00 -17.00 890.00 569.00 1.74 6.10 184.2 MenziesJ 713.00 3.00 725.00 459.63 2.13 60.42 40.4
RollsRoyceX 885.50 18.00 895.00 588.00 1.32 -4.02 8842.9 EVRAZ 194.00 4.00 280.64 106.00 - -15.78 1759.9
Investec 599.50 -8.50 630.50 387.00 3.50 13.94 2167.7 Hill&Sm 1473 34.00 1474 754.48 1.50 34.66 190.2
Senior 233.40 -1.90 245.00 161.00 2.70 21.55 1093.7
IMI 1261 7.00 1317 891.50 3.05 32.75 411.8
Fresnillo 1591 15.00 2057.21 995.50 0.62 33.95 1030.5 Real Estate Inv & Services MITIE 242.30 0.10 287.60 165.00 4.99 -13.39 635.3
UltraElc 2144 12.00 2245 1573 2.17 25.89 136.5 Jupiter 504.00 10.40 505.00 324.60 2.68 17.68 1360.8 GemDmnd 91.00 -1.00 145.00 84.00 4.45 -0.98 108.0 Cap&Count 310.10 -4.20 363.10 257.20 0.48 -22.15 2392.0 PageGroup 471.10 0.20 510.00 156.30 2.47 20.39 872.9
Liontrust 450.50 -4.50 470.00 235.00 2.66 35.78 18.6 MelroseInd 241.00 1.75 834.50 135.75 0.31 -92.69 16790.7 PayPoint 943.00 -2.50 1176.51 700.00 4.50 34.29 63.6
Harmony R 25.40 -0.88 67.00 24.72 1.91 4.08 2102.1 CLS 195.00 -4.90 209.00 112.50 - 8.25 127.0
Automobiles & Parts Man 158.20 0.90 164.10 102.50 4.83 -12.37 4310.9 Renold 55.13 0.13 65.00 33.50 - 34.45 33.7
Hochschild 293.40 7.00 327.60 134.50 0.38 40.28 1406.0 Daejan 6565 -220.00 7005 4401 1.34 6.75 2.5 Renewi 90.50 -4.00 115.75 70.75 3.31 -104.14 823.1
FordMtr $X 11.51 0.39 14.04 10.67 - - 49078.2 NB GFRIF 97.45 - 100.65 88.60 4.72 21.89 920.1 Rotork 234.50 -1.10 269.40 173.97 2.15 30.45 2364.2 Rentokil 269.10 3.50 269.40 164.00 1.13 29.60 3776.1
Kenmare 280.75 10.25 366.25 126.02 - -0.65 37.0 Grainger 267.40 -2.90 271.10 193.00 1.33 14.94 1388.2
GKN 353.20 3.20 379.30 249.40 2.46 30.98 6152.6 NEX Group 647.50 3.00 867.30 445.90 5.95 61.15 728.6 Severfd 82.25 -1.00 88.00 43.00 1.82 20.31 77.8 Ricardo 888.50 6.50 1040 645.00 2.04 19.07 32.4
Lonmin 73.00 -0.50 252.56 70.50 - -0.46 2306.2 Harworth Grp 101.00 0.50 107.00 69.00 - 3.27 90.6
Paragon 458.30 2.10 490.80 225.10 2.95 11.23 1183.3 SKF SKr 178.80 1.00 203.20 127.70 3.07 20.46 2050.6 RbrtWlts 422.00 -11.50 465.83 242.00 1.76 16.61 9.8
Banks Petra 128.00 -1.70 173.60 98.50 - 9.85 1899.5 Helical 320.25 -15.00 418.25 228.00 2.33 3.46 106.9
Providnt 3062 11.00 3402.27 2125 4.05 17.03 342.4 Tex 142.50 1.00 147.35 96.50 4.91 7.74 1.2 RPS 275.25 -0.75 279.50 158.52 3.54 24.38 164.7
ANZ A$X 27.95 -0.06 32.95 22.66 8.72 13.36 6571.8 Petropvlsk 8.00 0.07 9.15 5.74 - 9.89 3455.6 HK Land $ 7.63 0.07 7.89 5.79 2.60 5.14 1502.1
RathbnBr 2598 -27.00 2645 1577 2.12 33.22 109.5 Trifast 216.00 -0.25 228.94 118.76 1.30 22.59 39.4 SIG 153.80 -0.40 155.90 86.60 3.08 -7.65 2850.2
BcoSant 501.50 -3.00 537.80 230.56 3.50 13.96 3111.5 PolymtIntl 998.00 -13.00 1367.91 723.00 1.78 13.26 1013.2 Lon&Assc 21.50 - 25.48 19.00 0.74 -7.76 8.0
Record 41.63 0.50 47.55 20.94 3.96 16.52 12.4 Vitec 994.50 34.50 1000.00 485.00 2.51 49.48 58.0 St Ives 45.75 -2.25 152.00 45.25 17.05 -2.12 137.6
BnkGeorgia 3720 52.00 3781 2241 3.11 10.78 71.0 RndgldRs 7360 -5.00 9820 5410 0.71 34.84 465.7 MacauPrp 160.00 -8.50 185.00 90.00 - -34.93 13.8
S&U 2033 -6.00 2612 1940 3.74 13.26 0.9 Weir 1812 -4.00 2096 1162 2.43 90.60 1129.4 Vp 835.50 -19.50 870.00 615.00 2.02 15.33 3.3
BankIre 0.24 0.00 0.28 0.16 - 11.12 172452.8 Sirius Min 30.50 -0.25 52.50 14.22 - -101.67 57075.1 Mntview 11037.5 - 11675 9700 3.40 11.12 0.1
Schroder 3179 22.00 3284 1960 2.61 19.09 246.1 Industrial General Troy Res A$ 0.07 -0.01 0.66 0.07 - -0.30 13370.5 RavenRuss 47.50 -0.75 55.00 31.50 - -2.50 108.0 Watermn 139.50 - 141.50 52.50 2.15 19.38 103.0
BkNvaS C$X 76.38 0.16 82.30 62.36 4.05 12.19 687.5
..N/V 2335 27.00 2423.27 1492 3.55 14.02 12.7 Coats Group 74.00 -0.50 76.00 24.50 - 20.19 385.9 VedantaRs 621.00 9.50 1112.5 366.10 4.51 -1.34 955.3 RavenR CNV 116.50 -0.50 119.00 100.50 - - 27.6 Wolseley 5095 -15.00 5285 3489 1.96 28.70 705.7
BarclaysX 211.10 1.10 267.32 121.10 1.42 16.11 48295.0
SVG Cap 737.00 -2.50 743.50 475.10 - 6.33 47.5 ExovaGroup 236.50 - 254.56 160.71 1.35 28.84 522.8 RavenR Prf 140.50 - 148.28 115.00 8.54 - 13.0
CanImp C$X 105.39 -0.23 120.83 95.50 4.60 8.93 522.3
TP ICAP 473.30 -4.00 497.50 270.80 5.94 27.52 1519.2 Oil & Gas Tech - Hardware
HSBCX 676.90 1.30 715.20 392.37 6.14 119.49 22975.2 JardnMt $X 64.92 1.03 67.27 52.90 2.33 9.31 909.9 RavenR Wrt 27.00 - 29.85 13.00 - - 17.7 Laird 141.50 2.25 354.40 123.50 7.15 -4.45 1356.9
WlkrCrip 39.63 - 50.25 37.00 4.67 39.63 83.2 BPX 470.00 3.30 521.20 349.35 6.54 -30.39 28436.4 Safestre 440.40 0.40 448.80 311.90 2.33 10.56 528.8
LlydsBkgX 70.16 -0.43 73.58 47.10 3.35 29.23 216268.7 Jard Str $X 41.87 -0.10 43.78 28.45 0.72 8.59 271.9 SpirentCM 123.75 1.75 130.25 72.00 2.53 -22.07 204.0
CairnEng 202.80 0.20 250.60 171.10 - -15.13 2244.1 Savills 867.00 2.00 960.50 542.18 1.38 18.69 1200.2
RylBkC C$X 93.59 0.22 99.90 74.64 3.72 12.31 723.2 Food & Beverages Macfrlne 62.00 1.00 69.00 49.00 2.97 13.36 88.3
Cape 248.50 8.25 252.00 139.00 5.63 -7.27 199.7 SchroderRE 64.75 -0.25 65.50 43.43 3.83 9.25 480.3 Tech - Software & Services
RBSX 258.90 -1.10 271.00 148.40 - -4.35 12144.3 AngloEst 810.00 35.00 810.00 380.00 0.23 11.43 57.8 RPC 872.00 14.00 1106 707.00 1.96 34.74 3374.2
ExxonMb $X 80.88 0.38 95.55 80.19 - - 5129.0 SiriusRE 56.38 0.13 57.50 0.49 3.41 9.01 1202.5
STB 2244.5 -82.00 2749 1550 3.21 22.05 2.1 AscBrFdX 3010 14.00 3183 1910 1.22 21.65 610.5 Smith DS 441.30 4.10 458.00 355.60 2.90 19.88 2347.4 Computcnt 859.00 12.00 895.00 666.45 2.58 16.42 68.4
GeoPark $ 8.75 0.08 9.00 2.30 - - 52.8 Smart(J) 111.50 - 115.00 98.00 2.75 14.26 11.5
StandChX 744.80 12.90 821.60 471.34 - -63.47 6174.8 Barr(AG) 656.50 -2.00 663.00 455.30 2.06 21.48 123.4 Smiths 1611 8.00 1685 1028 2.61 14.92 1260.7 MicroFoc 2460 66.00 2675 1408 2.18 42.21 857.9
GrnDnGas 78.00 -3.38 284.00 75.00 - -12.52 16.6 StModwen 348.40 0.60 370.25 218.10 1.66 17.60 343.5
..7.375%Pf 122.50 - 131.50 102.20 6.02 - 59.2 Britvic 720.50 20.50 742.00 521.00 3.40 16.87 2074.8 SmurfKap 2209 28.00 2260 1503.93 2.71 14.32 371.3 NCC Grp 171.00 5.50 377.30 87.80 2.72 95.00 746.8
GulfKeyst 112.25 -1.00 800.08 107.75 - -0.12 385.5 U+I 190.00 -3.50 204.75 140.00 3.11 29.69 83.4
..8.25%Pf 137.00 - 144.20 112.50 6.02 - 40.7 CarrsGroup 138.00 -1.00 167.50 106.50 2.75 13.27 153.8 Vesuvius 580.00 0.50 609.00 270.20 2.81 33.53 416.3 RM 170.00 - 196.00 112.00 3.12 11.81 3.8
HellenPet 6.78 -0.16 7.06 3.13 - 6.40 258.1 UNITE Gp 632.00 2.00 667.50 541.57 2.45 6.67 410.1
TntoDom C$X 64.62 0.22 71.31 54.20 3.42 12.99 1158.7 Coca-Cola HBC 2293 40.00 2299 1323 1.49 28.28 628.0 Sage 728.50 8.00 807.50 573.00 1.94 32.21 2367.3
Industrial Transportation Hunting 506.00 0.50 650.00 306.50 3.62 -4.78 643.0 Urban&C 270.00 2.63 275.00 183.00 1.07 8.79 19.9 SDL 647.00 20.50 652.50 372.91 0.48 64.06 1113.8
VirginMoney 295.00 -3.20 369.90 196.10 1.59 10.14 6006.9 Cranswk 2960 -5.00 3092 1950.37 1.27 27.98 31.9 ImpOil C$X 38.45 0.23 48.72 38.08 1.61 14.36 363.2
BBA Aviat 321.80 -0.50 324.50 196.00 3.12 -209.231635.4 TriadGp 77.00 -0.50 90.00 24.00 - 7.18 47.9
Westpc A$X 30.29 -0.21 35.39 27.57 9.13 13.51 7188.0 Dairy Cr 619.50 8.50 697.00 503.00 3.52 22.36 411.2 JKX 21.25 - 35.96 15.50 - -0.63 2.0 Retailers
Braemar 293.00 -8.75 451.50 218.00 8.87 -176.51 24.1
Devro 214.25 2.25 291.04 139.34 4.11 59.51 151.0 Nostrum 518.50 -13.00 535.00 255.00 - -21.61 99.5 AA 234.80 1.30 309.00 209.50 3.88 19.25 1701.6 Telecommunications
Basic Resource (Ex Mining) Clarkson 2600 -80.00 3033 1629 2.38 21.92 18.6
Glanbia 18.62 0.58 19.78 14.00 0.66 26.53 34.2 Eurotunnl 10.65 0.17 11.82 7.70 2.03 43.42 1128.4 OphirEgy 84.00 1.25 103.41 64.50 - -9.44 1193.0 AO World 145.00 1.00 192.30 119.60 - 580.00 505.1 BTX 303.85 -5.70 444.15 297.40 4.76 15.91 29554.9
Ferrexpo 176.40 4.70 182.60 28.50 - 6.83 4150.6
Grncore 241.70 0.20 370.00 215.00 2.14 25.78 3173.6 Fisher J 1710 -14.00 1755 1275 1.44 21.73 13.0 PremOil 58.00 0.25 99.50 47.89 - 2.82 3486.1 AshleyL 12.50 -0.25 24.50 12.50 16.00 5.95 905.6 Inmarsat 844.50 44.50 1085 594.50 5.02 19.69 4543.2
Mondi 2051 27.00 2053 1240 2.37 18.24 1065.1
HiltonFd 770.00 9.00 798.00 486.25 1.96 23.19 49.7 Flybe Grp 35.50 -1.75 63.00 29.90 - -11.83 1426.2 RylDShlAX 2111.5 11.50 2295.5 1645 7.14 44.98 5540.5 Caffyns 510.00 - 599.00 473.00 4.07 5.75 0.4 KCOM Gp 93.00 -1.25 121.00 87.00 6.35 7.39 654.7
Chemicals Kerry 79.16 1.14 82.98 61.06 0.64 26.72 52.0 OceanWil 1022.5 -10.00 1126.54 725.00 4.67 20.74 212.2 ..B 2158 14.50 2403.68 1646 6.98 45.97 4800.6 Dairy Fm $ 8.10 0.11 9.25 6.24 2.58 22.80 511.3 TalkTalk 174.70 -2.80 248.70 144.96 9.08 56.35 1959.2
Bayer X 119.05 0.95 119.50 85.00 2.06 21.51 1571.6 Nestle SFrX 82.80 0.15 83.45 71.45 2.71 30.23 3522.7 RoyalMail 441.30 -0.10 549.00 397.40 5.10 16.16 4055.6 Schlmbrg $X 70.03 0.44 87.84 68.23 - - 3272.2 Debenhams 49.57 -0.53 75.05 48.95 6.91 7.51 2987.2 TelePlus 1307 -14.00 1336.6 799.89 3.52 30.32 72.3
Carclo 142.75 -0.25 169.00 106.75 2.00 32.44 27.6 PremFds 40.50 -0.25 57.00 36.40 - 9.88 908.8 SEPLAT 77.38 -0.50 111.50 61.50 4.18 -3.30 1822.2 Dignity 2515 -15.00 2940 2240 0.88 21.95 343.7
Croda 3994 31.00 4017 2754.13 1.81 27.19 424.6 PureCircle 322.00 -0.75 562.47 190.00 - 78.02 41.1 Insurance Soco Int 131.75 -0.25 168.26 115.00 1.66 -11.15 141.8 DixonsCar 327.00 -1.60 440.70 242.00 - 15.42 2726.2 Tobacco
Elemntis 298.40 -1.90 320.68 179.60 2.36 25.25 757.1 REA 332.50 10.13 385.00 210.00 - -8.52 1.0 Admiral 2055 18.00 2288 1680 3.43 26.18 630.8 TrnCan C$X 63.02 0.31 65.24 54.11 3.84 111.88 311.4 Dunelm 618.00 -8.00 999.00 579.50 4.06 14.44 432.6 BrAmTobX 5508 -22.00 5602 4072 2.80 23.78 2735.8
Syngent SFrX 463.00 -6.70 471.20 360.50 2.57 34.61 2226.3 StckSpirit 172.75 -2.25 200.25 146.25 1.60 24.38 1008.8 AvivaX 529.50 4.50 570.50 290.00 4.05 35.07 5700.1 Findel 203.75 -3.25 220.00 130.00 - -110.14 8.9 Imperial BrX 3654.5 25.50 4154 3324 4.25 34.41 1637.5
Victrex 1924 -7.00 2063 1364 2.43 19.90 230.8 Tate&Lyl 737.50 -0.50 850.00 603.39 3.80 18.91 3254.1 Beazley 471.50 -0.70 475.20 327.30 2.12 14.72 1418.0 Pharmaceuticals & Biotech Halfords 357.90 -5.40 435.40 299.50 4.74 12.26 504.3
TongtHu R 120.00 1.40 135.50 102.98 2.51 21.35 548.1 Chesnar 378.00 -2.00 402.00 248.25 5.01 39.96 84.7 BTG 662.50 9.00 739.50 528.36 - 42.52 1938.8 Travel & Leisure
Inchcape 823.00 6.00 861.00 574.00 2.56 19.32 993.7
Construction & Materials Unilever 4320 -11.50 4385.19 3050.5 2.51 27.81 2378.8 Eccles prf 144.00 - 148.00 126.75 5.99 - 63.6 CathayIn 13.13 - 21.00 12.81 - -5.18 24.8 JDSportsF - - - - - - -
888 Hldg 276.50 -14.25 301.75 188.50 1.97 49.69 6115.6
Alumasc 185.00 1.50 205.00 115.00 3.51 12.09 48.8 ..NV 50.68 -0.14 51.04 36.27 2.44 28.39 7.9 Hansard 89.50 2.50 142.75 80.14 9.94 15.70 62.8 Dechra 1901 -43.00 1944 811.00 0.97 128.36 217.5 AirPrtnr 128.63 -5.38 138.00 59.90 18.84 5.50 96.6
Lookers 129.50 1.00 150.07 88.00 2.57 7.31 690.2 Cineworld 718.50 0.50 744.90 496.53 2.46 23.63 347.6
Boot(H) 235.00 1.75 243.80 161.24 2.68 11.03 36.9 Hiscox 1234 6.00 1237 903.00 1.99 10.64 415.5 Genus 1893 20.00 2113 1323 1.03 37.05 41.9 Marks&Sp 375.30 -7.20 397.80 255.10 4.98 24.37 7672.2
ClarkeT 88.75 -0.25 93.67 52.00 3.49 13.65 65.2 Health Care Equip & Services JardineL 1188 8.00 1192 825.00 2.62 31.43 207.7 GlaxoSmhX 1703.5 - 1745.56 1363 4.70 49.96 12277.2 CompassX 1680 10.00 1696 1242.15 1.89 24.96 4698.5
Bioquell 166.00 - 173.00 119.50 - 79.05 62.4 MossBros 110.00 -10.00 120.00 86.50 5.15 20.41 97.8 Dalata Hotel 447.38 2.38 451.88 280.00 - 27.69 4.2
CRH 2827 35.00 3342 1700 1.90 22.21 1898.4 Lancashire 697.00 1.50 775.00 467.00 1.47 13.01 387.5 HikmaPhm 1707 19.00 2703 1573 1.39 27.23 836.4 Next 4400 40.00 5705 3550 3.59 10.04 557.6
GalfrdT 1243 -7.00 1592 739.86 6.60 8.81 365.4 ConstMed 1043 3.00 1180 940.00 1.77 32.29 3.6 Leg&Gen 255.00 3.20 262.06 160.50 5.47 12.07 18815.4 Oxfd Bio 5.17 0.17 6.00 2.98 - -8.34 2825.5 EI Group 143.25 1.00 149.75 71.50 - 15.24 905.0
ConvaTec 330.80 10.80 333.50 213.00 - -27.81 8727.1 Ocado 317.90 3.20 326.00 203.00 - 148.55 2145.3 FirstGrp 142.30 -7.50 154.50 87.75 - 16.55 5875.3
Keller 870.00 10.50 1044 643.50 3.11 30.00 101.3 Old Mut 190.70 2.50 229.84 168.30 4.68 18.88 10251.6 RichterG $ 25.46 -0.11 25.93 18.33 1.02 17.86 0.0 Photo-Me 166.50 0.50 177.50 122.77 3.07 21.57 238.2
KierGp 1245 -11.00 1505 917.50 5.18 66.58 533.3 GNStre kr 203.10 1.10 203.40 114.70 0.48 28.27 498.6 PermTSB 2.80 - 2.90 1.47 - 15.11 109.1 ShireX 4492 20.50 5377 2707.19 0.54 119.51 3066.9 Fuller A 1089 4.00 1125 925.50 1.57 18.63 16.8
UDGHlthC 818.00 1.50 832.00 518.50 1.22 34.24 1037.5 Saga 202.40 0.30 227.38 175.00 3.80 14.46 1977.3 Go-Ahead 1830 -1.00 2572 1686 5.24 11.83 197.1
Kingsp 31.05 0.27 33.09 17.38 0.85 22.35 40.2 PhoenixGrp 762.50 8.00 900.50 691.00 5.96 -22.23 932.7 VecturGp 115.80 -1.90 166.97 115.40 - 96.50 2383.4 SuperGroup 1568 17.00 1793.66 1100 - 32.07 111.4
LowBonr 88.13 -1.38 90.03 53.50 3.18 17.11 133.5 PrudntlX 1757.5 21.50 1801.5 1096 2.24 23.43 3700.1 GreeneKg 755.00 0.50 910.00 646.50 3.81 18.59 1288.5
House, Leisure & Pers Goods Real Estate TescoX 183.65 -0.05 219.40 143.08 - 226.73 14607.7 IrishCtl 5.43 0.08 5.72 3.90 1.67 22.49 0.1
Marshlls 412.50 0.30 422.80 199.40 1.85 22.17 243.2 RSA Ins 624.00 -1.50 635.13 425.60 0.88 90.43 2649.4
BarrttDev 602.00 -10.50 624.50 326.00 3.04 10.69 3734.0
MorgSdl 1227 -13.00 1275 560.00 2.44 15.07 26.0 SagicFin 90.00 - 95.00 60.00 2.22 5.86 0.6 REITs Support Services Jackpotjoy 600.00 4.50 660.00 528.50 - -2.89 99.7
Bellway 2814 -12.00 3001 1622 2.74 10.20 554.4 Ladbrokes Coral 122.50 3.30 164.80 105.60 2.45 -7.00 12719.2
Norcros 167.50 0.50 197.95 137.00 3.94 7.68 20.1 StJmsPl 1186 13.00 1195 521.00 2.49 55.68 954.7 Assura 63.30 -0.20 63.65 48.08 3.63 10.91 5703.1 Acal 280.00 2.50 284.10 203.20 2.88 38.36 69.6
Berkeley 3199 -57.00 3421 2015 6.25 9.72 566.9 MandarO $ 1.50 0.04 1.50 1.22 3.13 32.80 254.9
StGobn X 50.47 0.70 52.40 32.15 2.41 21.89 1606.2 Stan Life 385.10 2.30 414.90 248.20 4.77 17.83 6819.7 BigYellw 787.00 -1.50 887.50 629.50 3.16 11.23 310.9 Aggreko 869.00 4.50 1305 751.00 3.12 17.18 379.5
BovisHme 913.50 1.50 1028 430.00 4.52 10.15 633.2 Marstons 134.20 -1.30 155.80 126.80 5.44 9.80 3452.8
Tyman 348.25 4.75 352.25 223.00 2.61 29.19 86.2 BritLand 640.50 6.50 773.35 499.96 4.40 5.16 4122.8 AshtdGp 1595 29.00 1764 875.78 1.41 17.39 1352.3
Cairn Homes 1.60 0.01 1.63 0.87 - - 7970.2 Media Natl Exp 367.60 -3.10 379.70 252.81 3.13 16.63 857.2
Cap&Reg 57.25 -0.75 65.00 43.58 5.66 -95.42 146.5 AtknsWS 2084 3.00 2148 1191 1.79 20.23 476.3
Electronic & Electrical Equip CtrySide 329.40 -3.40 337.70 170.60 1.03 15.25 3122.8 4imprint 1699 -17.00 1900 1177.06 2.05 24.13 7.2 Civitas SH 110.50 1.50 113.50 102.50 - - 473.2 Babcock 938.50 5.50 1112 780.00 2.75 15.51 1345.9 PPHE Htl 855.00 -10.00 875.00 651.50 2.34 10.30 5.0
Dialight 1028 -7.00 1115 484.25 - -122.38 7.3 CrestNic 615.00 -16.50 648.50 323.90 3.20 11.58 1332.6 Centaur 50.38 -0.25 57.31 32.88 5.96 -13.26 64.0 Restaurt 369.00 4.80 437.50 229.85 4.72 -18.39 1463.4
Countrywd 164.25 -5.75 374.30 147.96 9.13 20.45 269.0 Berendsen 1105 7.00 1371 722.00 2.90 20.77 1460.0
Halma 1151 5.00 1158 854.01 1.07 40.02 645.5 GamesWk 944.00 10.00 990.00 420.00 5.51 24.66 21.7 DlyMailA 692.00 2.50 836.00 571.00 3.18 35.49 738.9 Stagech 212.10 0.60 262.20 193.80 5.09 12.48 1286.7
DrwntLdn 2720 -46.00 3507.8 2230 1.64 51.72 374.6 Bunzl 2425 -7.00 2587.89 1949.5 1.62 30.43 747.1
Morgan Ad 297.80 -0.80 338.40 200.30 3.69 16.27 529.2 Gleeson 650.00 8.00 695.00 385.00 2.23 14.99 18.3 HaynesPb 193.50 30.00 195.00 100.60 3.88 -17.75 26.7 ThomasCook 93.25 0.90 97.03 52.60 0.54 133.21 2734.3
Gt Portld 625.00 -9.50 824.21 562.63 1.46 3.86 2244.9 Capita 589.50 7.00 1097 431.30 5.48 106.22 2408.6
OxfordIn 1050 -53.00 1139 610.00 1.24 109.38 43.5 Headlam 570.00 -34.50 654.50 408.00 3.75 15.57 76.3 ITE Grp 157.25 0.25 181.25 118.06 2.86 -27.11 312.7 TUI 1190 -8.00 1231 813.00 4.02 20.03 1408.0
Green Reit 1.47 0.07 1.53 1.19 - - 146.2 Comnsis 51.25 -2.50 57.50 32.50 4.02 7.35 218.5
Renishaw 3757 55.00 3792 1720 1.24 39.59 68.6 McBride 189.75 -0.25 207.25 127.00 - 20.40 1324.2 ITV 191.60 -4.10 221.76 141.00 3.39 17.26 16590.3 Whitbrd 4298 7.00 4380 3283 2.10 19.80 453.8
Hammersn 592.50 7.00 606.00 400.00 3.86 14.78 2598.4 ConnectGp 125.25 -0.75 168.00 121.00 7.58 9.35 701.4
Spectris 2663 50.00 2869 1604.32 1.86 30.43 312.0 McCarthy&S 184.40 -2.60 241.70 129.36 2.44 14.18 1635.1 Pearson 710.50 4.00 989.50 552.00 7.32 -2.48 1918.6 Willim H 289.00 1.70 353.60 235.50 4.33 15.37 7360.3
Hansteen 126.70 -2.20 130.83 94.50 4.22 9.18 1576.2 DCC 7500 125.00 8029.92 5780 1.30 32.96 153.2
TT Elect 196.25 -2.25 210.00 116.43 2.80 19.05 85.9 Persimn 2404 -51.00 2481 1170 4.58 12.20 1203.7 Quarto 248.50 - 325.00 225.25 4.36 6.84 1.1 HIBERNIA 1.39 - 1.43 1.14 1.07 10.06 6918.6 DeLaRue 679.00 1.00 690.00 458.34 3.68 14.70 103.2 Utilities
XP Power 2680 - 2750 1475 2.50 25.82 1.0 Philips 32.00 0.54 33.34 20.90 2.46 25.42 2916.5 RELX NV 18.53 0.06 18.65 13.92 2.03 28.89 2424.7 INTU 277.20 5.20 319.90 254.70 4.94 24.75 7410.7 Diploma 1122 3.00 1187 736.00 1.78 28.84 88.6
PZCusns 341.90 -3.70 374.60 291.70 2.37 24.44 607.9 RELX PLCX 1680 17.00 1686 631.02 1.94 30.11 3928.6 Drax 348.00 1.80 393.20 273.10 0.78 7.40 965.6
Financial General LandSecs 1081 11.00 1209 810.00 3.31 16.04 2733.8 Elctrcmp 596.00 9.50 600.69 236.40 1.97 119.82 1303.3
ReckittBX 7961 23.00 8083 6496 1.85 31.04 1235.2 STV Grp 373.50 -4.25 440.00 300.00 2.95 11.71 250.6 Natl GridX 1050 -39.50 1252.36 969.71 4.50 17.69 9895.0
3i 927.00 32.00 931.50 468.50 2.59 5.86 4627.6 LondonMtrc 169.60 1.10 170.10 133.90 5.34 188.44 10755.2 Essentra 575.00 - 855.50 366.70 3.60 -29.04 546.3
Redrow 556.50 -4.00 597.50 100.00 1.80 8.81 923.6 ThmReut C$X 59.01 0.09 62.83 50.01 3.22 28.47 233.7 Pennon 916.50 -4.50 958.00 761.00 3.52 24.84 1339.3
AberAsM 289.40 0.40 354.40 212.50 6.74 22.93 3642.3 McKaySec 226.50 -6.50 240.00 140.00 3.89 14.55 134.0 Experian 1611 -7.00 1708 1224 1.93 24.05 4573.2
TaylorWm 190.00 -13.10 205.40 109.44 0.90 10.61 23090.6 WPPX 1747 3.00 1928.07 1204 2.77 16.18 3197.6 UtdUtils 1022 -7.00 1078 853.50 3.76 16.30 2704.4
BrewDlph 345.00 6.40 352.80 150.00 3.51 24.82 1817.6 MucklGp 499.75 -6.25 521.00 380.00 4.30 15.85 33.5 HarvyNah 84.13 1.13 85.69 50.34 4.58 10.31 70.6

AIM
52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol 52 Week Vol
Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s Price +/-Chg High Low Yld P/E 000s
Aerospace & Defence Leeds 36.00 - 43.35 32.00 - 8.18 10.0 WalkerGb 211.50 -2.00 224.00 155.15 1.42 26.18 31.8 ShantaGold 8.13 0.50 13.38 5.75 - -3.21 1538.2 LXB Retail 39.00 0.13 70.07 33.50 - - 107.0 Tribal Grp 91.13 -0.25 94.50 46.00 - -130.18 22.5
Cohort 417.50 -7.50 468.00 276.00 1.27 22.23 88.0 MattioliWds 819.50 - 858.30 435.00 1.34 38.84 9.1 Stratex 1.53 - 2.57 1.41 - -3.39 178.3 Palace Cap 390.00 - 395.00 300.00 4.10 14.61 26.2 Utilityws 119.25 -5.50 202.50 112.00 5.45 -63.43 355.1
Miton 38.25 0.75 42.25 20.00 1.75 20.13 109.3
Industrial Engineering PnthrSec 317.50 - 403.00 285.00 1.89 -57.73 10.0
Banks Numis 254.25 2.25 292.38 175.00 2.56 13.82 133.8 600 Grp 12.50 - 14.50 7.25 - 9.01 33.2 Oil & Gas SIR 347.00 - 353.90 257.75 1.69 7.32 45.5
Tech - Hardware
Caribbean Inv 11.50 -0.25 35.00 6.00 - -2.49 12.9 Park Grp 83.63 -0.38 87.99 59.25 2.93 16.14 40.0 MS Intl 162.00 2.00 184.50 138.00 4.94 19.76 3.1 AmeriRes 26.00 -0.75 32.75 19.75 - -15.45 1807.5 SumGermny 1.10 - 1.12 0.85 3.61 10.63 6.5 AminoTech 208.50 -0.50 222.00 100.50 2.70 55.31 16.4
PolarCap 396.50 -6.25 420.00 262.00 6.31 19.70 18.4 Pres Tech 153.50 - 244.95 120.00 5.47 31.89 1.0 AndesEnrg 59.88 0.38 68.59 13.70 - -23.06 374.7 TaliesinPr 3570 -2.50 3720 2696 - 6.63 0.0 IQE 68.75 -0.75 72.50 16.00 - 18.68 1897.1
Basic Resource (Ex Mining) TP Group 6.38 -0.13 9.00 3.13 - -127.50 779.8 BorSthnPet 2.38 0.01 5.88 1.46 - -5.89 631.7
Share 24.75 - 30.00 24.00 2.51 54.04 9.0 Tech - Software & Services
CropperJ 1505 - 1535 705.00 0.62 36.98 3.2
ShoreCap 252.50 - 312.50 210.00 - 43.53 2.0 ClontarfEn 0.33 - 1.08 0.15 - -8.25 173.6 Retailers
Industrial General Egdon Res 8.50 -0.25 20.33 7.10 - -3.98 234.0 ASOS 6361 -56.00 6497 3303 - 140.73 374.4 Brady 77.00 - 83.75 58.00 2.40 -36.90 0.5
Chemicals STM Group 40.50 - 60.00 30.30 3.46 10.47 108.4 RM2 19.50 - 35.20 16.16 - -1.74 86.1 Eckoh 46.63 - 55.00 30.00 0.97 67.57 35.2
Ithaca Engy 111.25 - 121.00 48.88 - -10.57 69.2 Koovs 35.50 1.25 96.90 32.10 - -1.10 169.3
Scapa 505.50 4.50 513.00 224.75 0.35 74.34 1102.4 Food & Beverages EgSoltns 89.50 -2.50 95.70 40.00 - 127.86 5.3
Insurance PetrelRes 3.88 - 8.30 3.75 - -24.53 5.0
Support Services Ingenta 197.50 -2.50 225.03 110.00 - 33.03 9.7
Construction & Materials FinsbryFd 116.00 -0.50 139.00 102.25 2.24 19.33 66.0 Helios 166.50 6.00 185.60 135.00 0.90 14.03 15.0 Rockhop 21.50 - 40.10 18.64 - 1.21 450.1
Nichols 1748 -31.50 1959 1373 1.46 27.01 10.6 Sound Energy 70.50 -0.25 102.00 15.52 - -27.98 2685.5 AndSyks 475.00 -20.00 530.00 295.00 5.01 13.87 6.6 Iomart 300.00 -1.00 325.00 226.00 1.05 27.25 1104.6
Abbey 1220 - 1269 925.00 1.03 6.77 0.1
RealGdFd 36.50 - 44.23 23.77 - 6.26 85.7 Media UnJackOil 0.14 - 0.22 0.12 - -7.00 36157.7 Begbies 50.50 -0.50 54.00 38.45 4.36 505.00 15.0 K3BusTc 161.50 0.50 365.00 140.00 0.93 13.13 14.5
AccsysTch 77.00 0.13 80.00 51.73 - -18.94 12.7
Wynnstay 547.50 -2.50 685.00 371.18 2.08 18.37 10.5 Cello Gp 134.50 - 140.00 93.00 2.25 -47.03 22.0 Christie 89.00 3.00 102.10 71.00 2.81 16.95 20.8 Oxford Metrics 53.25 2.75 54.48 40.13 1.22 30.60 140.9
Aukett 2.38 -0.13 4125 2.05 9.26 3.21 189.6 Pharmaceuticals & Biotech
M&Csaatc 360.00 -2.75 383.75 275.25 2.07 1894.74 517.0 Empres 167.50 - 169.95 70.00 0.60 18.01 58.3 Progility 1.18 - 3.17 0.55 - -2.14 44.8
Electronic & Electrical Equip Health Care Equip & Services MissionMk 43.50 - 49.00 33.00 4.71 9.02 7.3 Abcam 980.50 1.50 988.50 619.00 0.91 49.30 864.5 Gattaca 320.00 - 435.00 240.00 7.19 11.99 29.2 RhythmOne 42.50 -0.25 50.00 18.50 - -9.49 2084.1
CeresPow 9.25 -0.10 11.00 6.79 - -7.28 161.4 Advnc Med 286.25 0.75 288.00 180.00 0.30 38.79 224.2 YouGov 265.00 - 294.00 161.00 0.53 77.94 8.0 AllcePharm 53.50 2.00 54.09 40.50 2.06 10.85 821.3 Hargreaves 335.00 1.50 348.82 162.00 0.69 -10.82 2.8 SciSys 111.00 - 117.99 66.23 2.08 14.80 12.7
ElektronT 8.00 0.25 9.00 5.01 - - 110.0 AVO 20.50 -1.00 187.00 20.00 - -0.58 483.0 e-Thera 7.50 - 14.90 6.00 - -1.53 125993.4 Impellam 780.00 -5.00 812.00 600.40 2.18 9.06 1.9 WANdisco 470.00 - 541.00 120.00 - -10.83 12.7
FlowGp 1.03 - 14.75 0.97 - -0.19 2517.3 CareTech 400.50 2.50 410.00 228.00 2.10 11.07 16.5 Mining Genedrive 42.50 - 93.00 30.00 - -1.08 0.0 JhnsnSrv 128.00 3.00 134.75 83.00 1.64 23.70 321.4
Tristel 209.50 - 214.96 87.11 1.59 27.93 12.1 AMC 6.00 -0.02 18.00 2.26 - -6.17 1839.8 HtchChMd 3120 -27.50 3335.71 1760 - 192.76 14.4 LonSec 2000 - 2150 1550 4.00 17.79 0.2
Travel & Leisure
LPA 145.50 -1.00 206.00 103.00 1.37 12.82 18.7
BotswanaD 1.58 - 2.40 1.13 - -10.50 690.5 Mereo Bio 322.00 - 340.00 240.00 - -5.11 1.4 NewmkSec 1.43 - 2.99 1.00 7.02 4.60 70.2 Celtic 96.50 - 105.00 69.69 - 135.92 1.1
ThorpeFW 395.00 - 412.50 203.00 1.03 32.67 14.7 House, Leisure & Pers Goods CentAsiaM 218.00 -3.00 263.00 135.75 7.01 11.66 33.7 ReNeuron 1.93 -0.03 3.70 1.90 - -4.81 1284.1 NWF 136.50 - 181.00 132.00 3.96 11.19 1.6 ..6%CvPf 90.00 - 105.00 56.95 3.60 - 0.5
Zytronic 510.00 -5.00 539.00 311.10 2.42 19.54 25.3
Airea 34.50 2.25 40.00 16.00 4.35 9.01 44.0 Connema 1.48 - 3.21 1.29 - -5.57 2.6 Sareum 0.90 - 1.73 0.56 - - 1526.9 Petards 32.50 -0.75 38.89 11.75 - 20.06 100.3 ..Cv Pf 185.00 5.00 170.00 120.00 - - 0.4
Financial General Churchll 1032.5 -12.50 1178.5 675.00 1.84 0.22 4.4 C'royG&NR 13.63 - 50.00 11.50 - -4.08 13.2 Vernalis 18.75 0.38 49.75 16.00 - -5.86 19.8 RedhallGp 10.63 - 12.90 5.65 - -31.25 5.0 Cortex Holdings 36.50 - 37.45 27.00 - -19.41 23.0
Arbuthnot 1479.5 - 1770.55 1165 2.03 -399.86 17.0 gamingrealms 13.13 - 21.00 10.92 - -3.39 6.6 GrekaDrill 2.91 0.15 4.75 1.70 - -2.33 103.5 Renew 451.00 6.25 490.00 290.17 1.77 27.42 48.8 Dart 621.00 -4.00 657.00 354.50 0.64 8.77 256.0
BP Marsh 204.00 - 222.00 146.00 1.35 6.85 8.9 Mulberry 1090 5.00 1174.5 911.39 0.46 294.59 3.9 HighldGld 153.50 1.00 195.50 81.00 3.26 55.46 1673.8
Real Estate Restore 432.50 0.50 436.20 252.04 0.82 44.13 272.5 GoalsSocc 109.50 - 122.40 90.00 1.83 -10.53 227.3
Camellia 10574.5 -267.50 11600 7300 1.23 31.41 3.9 Portmern 915.00 27.50 1180.36 740.00 3.28 14.68 14.4 KarelianDd 0.50 - 1.09 0.40 - -7.35 1598.2 InlandHms 59.00 -0.63 76.75 46.05 2.20 10.73 1381.5 SafeCharge 281.00 - 295.50 183.00 4.14 20.05 48.4 MinoanGp 9.88 - 12.75 5.82 - -9.68 195.7
Fairpoint 11.25 0.13 127.20 10.25 58.22 -0.79 14.9 TelfordHms 417.75 -3.75 439.76 254.01 3.40 19.80 1602.4 OracleC 2.63 -0.08 3.65 2.10 - -26.25 639.5 Lok'nStor 455.00 - 500.00 265.00 1.98 38.82 3.0 Servoca 26.00 -1.00 28.70 18.00 1.15 12.26 53.0 PeelHtls 143.50 -2.00 149.00 93.00 1.39 22.78 6.5

Investment Companies
Conventional (Ex Private Equity) 52 Week Dis(-) Edin Inv 768.50 3.00 772.00 618.00 3.17 815.0 -5.7 JPMElct MC 101.00 - 103.00 97.00 0.35
102.2 -1.2 RIT Cap 1865 -2.00 1934.22 1529 1.66 1795.2 3.9 Conventional - Property ICs 52 Week Dis(-) Infra India 6.00 -0.13 15.00 4.00 - 50.4 -88.1
Price +/-Chg High Low Yld NAV or Pm Edin WWd 615.25 -1.75 623.50 398.16 - 645.3 -4.7 ..MG 753.00 -2.00 756.40 560.00 1.34
772.0 -2.5 RobecoNV 30.38 - - - - - - Price +/-Chg High Low Yld NAV or Pm
3i Infra 197.90 -0.80 203.40 165.00 3.74 171.0 15.7 EP Global 302.75 -1.75 304.72 200.00 1.02 318.2 -4.9 ..MI 113.25 0.75 114.71 92.00 3.44
116.6 -2.9 RolincoNV 28.32 - - - - - - Direct Property
AbnAsianIn 210.50 0.50 215.75 157.91 4.04 227.6 -7.5 Euro Ast
EuroInvT
1282.5
920.00
4.00
4.00
1290
922.00
915.00
600.00
6.15
1.74
1293.7
1033.5
-0.9
-11.0
JPM Emrg
JPM EurGth
794.50
304.50
4.50
2.25
799.00
307.50
563.00
205.83
0.76
902.4
1.92
336.8
-12.0
-9.6
Ruffer Inv Pr
Schroder ToRt
239.50
295.00
1.75
0.25
240.00
299.00
191.00
195.50
1.42
1.29
230.6
305.2
3.9
-3.3
AEW UK REIT 103.75 - 104.50 89.50 7.23 96.0 8.1 Guide to FT Share Service
AbnAsian 1046 5.00 1050 777.08 1.00 1201.4 -12.9 CustdnREIT 112.50 -1.25 114.25 99.00 5.63 101.9 10.4
Abrdn Div I&G 115.00 0.38 124.00 93.43 5.74 125.1 -8.1 F&C Cp&I 320.00 -3.50 325.00 244.93 3.23 321.3 -0.4 JPM EurInc 165.25 0.25 167.00 104.98 2.87
176.2 -6.2 SchdrAsiaP 406.75 -0.25 410.00 254.00 1.03 455.0 -10.6
F&CComPrp 148.40 -0.10 151.80 98.00 4.04 139.4 6.5
AbnEmgMkts 575.00 5.00 587.00 388.75 - 662.0 -13.1 F&CGblSmlr 1293 5.00 1310 927.48 0.83 1292.3 0.1 JPM EuSm 377.00 1.00 378.00 248.79 0.85
419.4 -10.1 Schdr Inc 295.50 -0.38 299.00 224.50 3.49 321.3 -8.0
F&CUKRealE 104.00 -0.25 105.20 76.40 4.81 98.3 5.8
AbnJapInv 561.50 3.50 565.00 435.00 0.75 645.3 -13.0 F&CMgdG 191.00 2.00 194.00 139.00 - 186.1 2.6 JPM Clavr 690.50 6.25 702.43 520.00 3.11
745.6 -7.4 SchdrJap 199.00 1.00 202.00 131.96 1.41 211.5 -5.9 For queries about the FT Share Service pages e-mail
Longbow 103.75 0.25 106.50 98.00 5.78 102.0 1.7
AbnLatAmIn 70.63 -0.50 77.25 50.22 4.96 82.2 -14.1 F&CMgdI 142.50 2.50 145.00 106.50 2.84 137.2 3.9 JPMGIConv 98.88 -0.13 99.31 85.37 4.55
101.3 -2.4 SchdrOrient 246.50 -0.25 250.75 176.00 3.49 244.2 0.9 ft.reader.enquiries@morningstar.com.
PictonProp 84.75 -0.25 86.00 56.88 3.89 81.0 4.6
AbnNewDn 221.00 1.75 222.00 145.25 1.76 255.1 -13.4 F&C UK HIT A 107.00 - 107.50 86.98 4.36 115.3 -7.2 JPM GEI 126.25 0.75 129.00 83.00 3.88
130.3 -3.1 SchdrUK 176.00 -0.50 177.35 139.03 2.95 203.5 -13.5 All data is as of close of the previous business day. Company classifications
SLIPropInc 88.75 - 92.50 64.41 6.38 80.2 10.7
AbnNewIndia 455.50 -2.50 463.50 317.50 - 505.6 -9.9 F&C UK HIT B 106.50 - 107.00 86.00 4.38 115.3 -7.6 JPM Gl Gr&Inc 302.25 -0.75 397.43 182.00 1.79
308.6 -2.1 SchdrUKMd 530.00 1.00 536.50 352.56 1.78 618.8 -14.4 are based on the ICB system used by FTSE (see www.icbenchmark.com). FTSE
UKComPrp 88.00 0.20 91.55 65.00 4.18 88.3 -0.3
AbnNewThai 516.25 -8.75 539.00 371.00 1.65 609.0 -15.2 F&C UK HIT UNIT 419.00 - 420.00 335.00 3.34 461.5 -9.2 JPM I&C Uni 369.50 - 374.00 306.50 - 396.2 -6.7 ScotAmer 353.75 -1.25 357.00 257.00 3.04 334.0 5.9 100 constituent stocks are shown in bold.
AbnSmlInCo 238.50 -1.00 245.00 173.00 3.52 303.8 -21.5 FidAsian 398.25 -1.50 404.00 259.00 1.13 404.0 -1.4 JPM Ind 722.00 -2.00 738.50 495.00 - 804.6 -10.3 Scottish Inv 809.00 4.00 815.50 574.66 1.58 896.7 -9.8 Property Securities
TR Prop 349.20 0.10 352.10 241.70 2.39 386.1 -9.6 Closing prices are shown in pence unless otherwise indicated. Highs & lows
Abf Gd Inc 251.25 0.75 258.00 163.00 3.58 258.1 -2.7 FidChiSpS 202.90 0.20 204.50 131.00 0.89 235.1 -13.7 JPM JpSm 352.00 2.25 352.00 265.00 - 404.5 -13.0 ScottMort 397.30 0.20 402.90 245.07 0.75 386.0 2.9
are based on intra-day trading over a rolling 52 week period. Price/earnings
Abf Sml 1312 -7.00 1344 835.00 1.98 1500.7 -12.6 Fid Euro 220.40 0.10 221.15 151.20 1.51 239.7 -8.1 JPM Jap 367.75 2.00 368.91 284.00 0.99
417.3 -11.9 ScottOrtll 1030 6.00 1042.16 741.64 1.12 1165.8 -11.6 VCTs 52 Week Dis(-) ratios (PER) are based on latest annual reports and accounts and are updated
AcenciADbt $ 1.57 0.00 1.61 1.31 3.57 1.7 -7.6 Fid Jap 115.00 0.50 115.00 86.00 - 136.8 -15.9 JPM Mid 1053 2.00 1075.67 760.00 1.90
1208.7 -12.9 SecTstScot 170.50 1.25 173.00 126.00 3.40 181.3 -6.0 Price +/-Chg High Low Yld NAV or Pm with interim figures. PER is calculated using the companys diluted earnings
Alliance 700.00 1.00 705.50 480.20 1.84 742.5 -5.7 Fid Spec 237.25 -3.00 251.93 168.70 1.56 254.4 -6.7 JPMRussian 456.00 -4.00 565.00 329.26 2.85
544.8 -16.3 Seneca I&G 173.88 - 174.25 137.00 3.44 172.4 0.9 AlbionDev 68.50 - 70.00 63.00 7.30 72.0 -4.9 from continuing operations. Yields are based on closing price and on dividends
AllianzTech 1020 5.00 1029 565.00 - 1054.7 -3.3 FinsG&I 741.00 6.50 741.50 521.00 1.86 736.9 0.6 JPM Smlr 945.75 -2.00 955.00 669.79 1.93
1168.4 -19.1 Shires Inc 251.38 1.38 259.75 186.44 4.87 285.9 -12.1 Albion Ent 95.00 - 97.00 83.00 5.26 98.6 -3.7 paid in the last financial year and updated with interim figures. Yields are
Art Alpha 285.00 -9.50 306.00 204.75 1.37 362.8 -21.4 FstPacfic HK HK$ 6.23 0.13 6.35 5.08 2.27 - - JPM US Sml 268.00 6.25 292.29 163.00 - 278.1 -3.6 StdLf Eqt 442.00 -6.00 449.50 360.00 3.57 473.9 -6.7 AlbionTech 68.50 - 70.50 61.00 7.30 70.1 -2.3 shown in net terms; dividends on UK companies are net of 10% tax, non-UK
..Sub 2.75 - 4.00 1.20 - - - For & Col 583.50 -4.50 591.00 343.50 1.69 632.5 -7.7 KeystoneInv 1823 15.00 1838 1502.5 2.80
2021.3 -9.8 StdLf Sml 444.13 3.13 447.54 258.00 1.49 468.6 -5.2 AlbionVCT 67.00 - 68.94 62.00 7.46 73.9 -9.3 companies are gross of tax. Highs & lows, yields and PER are adjusted to reflect
Aurora Inv 201.00 - 201.00 149.00 0.50 196.9 2.1 Geiger 19.25 -0.25 33.50 12.35 - 21.0 -8.3 Law Deb 582.50 1.50 606.00 445.15 2.78
640.9 -9.1 StrategicEq 218.75 1.00 221.78 169.03 0.36 258.8 -15.5 ArtemisVCT 77.75 2.75 79.79 55.50 5.14 83.4 -6.8 capital changes where appropriate.
Axiom 100.50 -1.00 102.00 91.00 - 101.2 -0.7 GenEmer 657.50 -3.50 670.50 482.30 - 748.3 -12.1 Lazard WorldTst 341.13 -0.13 348.02 231.00 1.93
390.9 -12.7 Temp Bar 1302 - 1331.78 959.00 3.08 1360.7 -4.3 Baronsmead 2nd VT 88.75 - 97.07 82.00 16.34 93.2 -4.8
BG Japan 665.00 8.00 695.50 419.70 - 637.9 4.2 GRIT 12.13 0.25 13.00 4.81 - 20.3 -40.2 LinTrain 790.00 2.50 932.50 550.00 1.03
635.7 24.3 TempEmerg 691.00 6.00 693.50 444.60 1.19 792.9 -12.9 Trading volumes are end of day aggregated totals, rounded to the nearest
BSC VCT 76.50 - 108.00 73.50 7.19 98.3 -22.2
BG Shin 693.25 21.25 695.00 451.00 - 659.1 5.2 GoldenPros 34.13 -2.00 58.50 29.20 - 41.1 -17.0 Lowland 1530 -15.00 1570 1117.03 3.01
1637.1 -6.5 TRIG 110.80 -1.40 112.30 88.75 7.04 100.4 10.4 1,000 shares.
..VCT2 56.50 - 61.00 54.75 7.96 60.4 -6.5
Bankers 786.50 2.50 800.00 546.00 2.02 830.2 -5.3 Hansa 903.50 13.50 945.00 684.94 1.77 1315.6 -31.3 Majedie 292.00 -2.00 313.50 244.50 3.00
321.9 -9.3 ThreadUKSel 214.00 0.50 214.35 151.95 2.10 227.3 -5.9 Crown Place 29.00 - 29.49 24.75 7.76 31.0 -6.5 Net asset value per share (NAV) and split analytics are provided only as a
BH Global 1275 -8.00 1328 1180 - 1429.0 -10.8 ..A 895.00 - 913.80 675.00 1.79 1315.6 -32.0 Man&Lon 349.63 0.63 365.81 224.25 0.64
422.6 -17.3 TREurGth 1055 17.50 1060 580.00 0.85 1151.8 -8.4 Inc&GthVCT 83.00 - 100.00 81.00 14.46 93.4 -11.1 guide. Discounts and premiums are calculated using the latest cum fair net
..USD $ 13.00 - 13.30 11.80 - 14.2 -8.5 Hend Alt 273.00 -2.00 301.38 205.00 1.21 327.9 -16.7 MCAsiaUncnst 385.88 0.75 388.00 258.86 2.03
443.4 -13.0 TroyInc&G 82.50 0.50 83.00 67.00 3.00 81.9 0.7 KingsAYVCT 20.75 - 21.25 17.00 4.82 21.7 -4.4 asset value estimate and closing price. Discounts, premiums, gross redemption
BH Macro 2035 -8.00 2160 1870 - 2181.0 -6.7 Hen Div Inc Tr 92.88 -0.38 95.50 87.43 5.49 90.8 2.3 MCGlobPort 234.50 -0.50 239.60 168.00 1.77
235.7 -0.5 UtilicoEmg 219.63 -1.88 225.50 165.00 2.96 244.0 -10.0 Nthn 2 VCT 74.00 -0.50 81.00 65.50 7.43 80.0 -7.5 yield (GRY), and hurdle rate (HR) to share price (SP) and HR to wipe out (WO)
..EUR 19.75 -0.03 20.85 18.10 - 21.2 -6.8 HenEuroF 1390 -5.00 1395 873.00 1.90 1367.6 1.6 Marwyn Val 163.75 0.25 165.40 134.50 - 235.1 -30.3 UtilEmSubs 32.13 -0.38 33.44 12.00 - - - Nthn 3 VCT 101.00 - 103.00 85.00 5.45 110.4 -8.5 are displayed as a percentage, NAV and terminal asset value per share (TAV)
..USD $ 20.10 -0.03 20.81 17.90 - 21.8 -7.8 HenEuro 1135 -20.00 1155 764.98 1.76 1196.7 -5.2 MercantIT 1974 7.00 1975 1369 2.22
2208.8 -10.6 UIL Inv 167.50 -0.50 193.55 111.50 4.48 217.1 -22.8 NthnVent 74.50 -8.00 86.50 68.00 8.05 71.1 4.8 in pence.
BiotechGth 712.25 7.00 790.00 517.86 - 768.6 -7.3 HenFarEs 359.50 -0.50 370.50 269.00 5.62 359.6 0.0 MrchTst 491.50 3.88 495.00 375.00 4.90
516.2 -4.8 ValAndInc 276.50 0.50 277.00 220.50 3.33 333.2 -17.0 ProVenGI 74.50 - 77.69 70.00 8.05 81.1 -8.1
BlckRCom 73.00 0.25 92.75 53.00 7.53 74.2 -1.6 HenHigh 201.25 - 201.50 156.63 4.55 195.9 2.7 Mid Wynd 449.25 3.00 452.00 330.00 1.00
442.6 1.5 VEIL 350.00 2.00 351.00 255.54 - 410.7 -14.8 X FT Global 500 company
ProVenVCT 94.50 - 97.00 89.50 6.88 102.7 -8.0
BlckREmEur 327.63 -0.88 344.00 215.00 - 348.9 -6.1 HenInt Inc 160.00 0.25 160.50 119.00 2.94 157.3 1.7 Miton Global 248.50 - 249.99 159.00 - 257.9 -3.6 Witan 1011 - 1022.13 710.00 1.72 1033.1 -2.1 trading ex-dividend
UnicornAIM 145.00 - 147.20 129.00 4.31 169.7 -14.6
BlckRFrnt 150.00 - 151.75 106.50 3.46 146.3 2.5 Hen Opp 961.25 16.25 996.81 676.50 1.92 1165.4 -17.5 MitonUKMic 61.75 - 64.50 49.00 0.2364.9 -4.9 WitanPac 312.75 1.50 318.69 223.48 1.50 362.2 -13.7 trading ex-capital distribution
BlckRGtEur 323.00 1.25 323.00 231.00 1.64 331.0 -2.4 HenSmlr 793.25 -5.75 809.44 511.38 1.89 921.4 -13.9 Monks 702.00 -3.50 875.50 400.00 0.56
690.1 1.7 WwideHlth 2381 -5.00 2468.73 1708 0.69 2395.4 -0.6 Ordinary Income Shares 52 Week HR # price at time of suspension from trading
BlckR I&G 205.00 - 206.00 169.00 2.93 213.1 -3.8 Herald 990.00 -1.00 999.00 638.65 - 1241.0 -20.2 MontanSm 783.00 -4.00 790.00 507.41 0.96
906.2 -13.6 Price +/-Chg High Low Yld WO GRY 0%
Conventional - Private Equity 52 Week Dis(-) The prices listed are indicative and believed accurate at the time of publication.
BlckRckLat 413.00 -2.25 469.00 304.30 3.79 475.9 -13.2 HICL Infra 169.90 -1.10 185.50 158.80 4.38 146.9 15.7 Mur Inc 811.00 -6.25 825.00 598.50 3.98
890.2 -8.9 JPM I&C 95.25 - 97.00 68.00 7.56 -47.5 4.2
Price +/-Chg High Low Yld NAV or Pm JupiterDv&G 4.13 - 5.50 2.25 27.88 53.2 -89.7 No offer is made by Morningstar or the FT. The FT does not warrant nor
BlckRckNrAm 154.25 -0.13 177.00 116.41 2.98 167.2 -7.7 Highbridge Multi 208.00 -1.00 211.00 176.10 - 213.6 -2.6 Mur Int 1253 2.00 1266 896.00 4.55
1219.4 2.8
Impax Env. 233.50 0.75 234.50 166.00 0.62 263.2 -11.3 NewCtyEgy 16.50 - 17.25 9.00 - - - AbnPvtEq 122.75 1.50 123.35 84.69 1.80 145.5 -15.6 Rghts&Icp 2158 -7.00 2165 1220 1.67 - - guarantee that the information is reliable or complete. The FT does not accept
BlckRSmlr 1234.5 -10.50 1268.5 725.00 1.50 1400.1 -11.8
Ind IT 519.50 1.50 811.00 322.35 1.54 535.2 -2.9 NewCityHY 61.75 - 63.50 53.00 7.0659.3 4.1 Altamir 16.71 0.21 17.06 9.55 3.29 22.0 -24.0 responsibility and will not be liable for any loss arising from the reliance on
BlckRThrmt 433.25 -2.75 439.40 264.50 1.55 521.1 -16.9 Zero Dividend Preference Shares 52 Week HR
IntBiotech 575.00 3.00 630.00 392.13 2.00 610.8 -5.9 New Star IT 104.00 - 109.50 72.00 0.29
148.0 -29.7 Electra 2745 -1.00 5154.9 2416 5.61 2923.0 -6.1 or use of the information.
BlckRWld 335.00 -2.00 405.00 222.00 5.37 376.4 -11.0 Price +/-Chg High Low SP WO TAV 0%
Intl PP 161.40 0.20 164.60 144.00 4.06 143.6 12.4 NorthAmer 1178 12.00 1299 838.75 2.93
1289.3 -8.6 F&C PvtEq 358.00 -4.00 366.00 230.88 3.34 345.4 3.6
Brit Emp 682.00 1.00 690.00 435.90 1.72 768.3 -11.2 Abf Gd Inc 158.75 0.13 160.40 152.75 - - 159.7
InvAsTr 270.50 3.38 274.00 177.00 1.35 304.9 -11.3 NthAtSml 2599.5 -55.50 2790 2025 -3206.3 -18.9 HVPE 1296 -10.00 1310 875.00 - 1454.7 -10.9 The FT Share Service is a paid-for-print listing service and may not be fully
Brunner 704.00 3.00 708.00 497.50 2.17 807.1 -12.8 JPM I&C 187.50 - 189.40 176.50 -51.0 - 192.1
Inv Inc 307.75 1.75 309.00 245.00 3.33 348.2 -11.6 Oryx Int 705.00 7.50 705.00 570.25 - 845.2 -16.6 HgCapital 1525 7.00 1620 1090 2.62 1666.2 -8.5 representative of all LSE-listed companies. This service is available to all listed
Caledonia Inv 2944 63.00 2989.44 2055 1.79 3479.0 -15.4 JupiterDv&G 141.00 - 142.90 113.00 -5.6 - 145.1
InvPerp 80.75 - 81.00 69.50 4.64 77.2 4.6 PacAsset 258.00 1.00 263.50 179.00 0.85
253.1 1.9 ICG Ent Tr 743.50 -10.50 768.00 523.00 2.15 860.7 -13.6 companies, subject to the Editors discretion. For new sales enquiries please
CanGen C$ 22.80 0.40 23.03 17.25 2.95 29.8 -23.5 UILFn18 155.00 - 156.50 146.00 -68.4 -96.7 160.5
IPST BalR 133.75 0.25 133.64 120.75 - 134.8 -0.8 PacHorzn 256.00 1.50 261.12 167.00 0.14
284.7 -10.1 JZ Capital 564.00 -2.00 578.00 385.00 - 807.3 -30.1 email daniel.fish@ft.com or call +44 (0)20 7873 4571.
Cap Gear 3897.5 -17.50 3920 3321 0.51 3856.5 1.1 UILFn20 138.00 0.38 138.25 127.00 -27.7 -37.5 154.9
IPST Gbl Eq 197.50 - 200.40 149.60 3.04 199.3 -0.9 Perp I&G 407.00 1.20 408.30 330.00 3.17
443.3 -8.2 Mithras 219.00 - 223.00 144.00 0.46 227.3 -3.7
City Merch 198.63 -0.38 199.50 170.19 5.03 195.4 1.7 UIL Finance 2022 ZDPs 111.25 - 111.75 100.00 -12.6 -17.8 147.0
NB PE Ptnr 1076 11.00 1090 9.85 - 1218.4 -11.7
CityNatRs 113.75 0.75 149.00 88.75 4.92 133.8 -15.0 IPST Mngd 101.50 - 101.80 100.00 1.38 103.2 -1.6 PerAsset 41310 -70.00 41500 36228.4 1.36
40880. 1.1
Nthn Invs 395.00 7.50 695.00 105.00 6.08 536.6 -26.4 Data provided by Morningstar
City Lon 440.00 2.00 440.80 340.00 3.65 432.2 1.8 IPST UK Eq
InvPpUK
192.00
478.50
-
0.88
193.50
493.45
154.00
329.00
3.41
3.01
194.0
510.9
-1.0
-6.3 PolarFins 133.00 -1.00 137.08 91.50 2.42 139.6
4
-4.7 Pantheon 1790 -3.00 1810 1190 - 2134.0 -16.1 Investment Companies - AIM
DiverseInc 102.50 - 103.50 72.50 2.73 103.2 -0.7
JLaingInf 139.70 -0.30 141.10 120.60 4.88 119.2 17.2 ..Sub 13.88 0.13 16.40 2.10 - - - PantheonR 1632.5 - 1650 1152 - 2134.0 -23.5
Dun Inc 269.50 -0.25 272.30 202.00 4.23 298.6 -9.7 52 Week Dis(-)
JPM Amer 377.50 -0.40 393.70 280.10 1.26 396.3 -4.7 PolarHealth 205.50 1.00 214.75 154.00 2.02 208.4 -1.4 PrincssPE 10.10 -0.09 10.74 6.91 4.53 10.8 -6.5
Dun Sml 242.50 -2.38 249.00 173.75 2.47 294.8 -17.7 Price +/-Chg High Low Yld NAV or Pm
JPM Asn 323.50 -1.25 325.75 207.75 0.93 355.5 -9.0 PolarTech 1007 -7.00 1023 568.00 - 1004.8 0.2 Riverstone 1265 -5.00 1358 784.50 - 1578.5 -19.9
EcofinGlobal 126.25 1.25 135.50 106.00 - 144.6 -12.7 AbnFrntrMkts 64.75 -0.13 72.57 50.00 1.5 71.4 -9.3
JPM Brazil 62.38 -0.13 71.50 41.75 0.80 72.1 -13.5 ProspJap $ 1.33 -0.02 1.38 0.89 - 1.2 10.8 StdLfPv 317.25 - 327.00 209.15 1.67 357.7 -11.3
EdinDragn 352.13 1.63 353.00 240.50 0.91 398.7 -11.7 CrysAmber 235.00 1.50 248.70 140.00 3.2 233.7 0.6
..CULS 108.00 - 109.50 100.50 - - - JPM China 236.50 -3.00 241.00 151.30 0.76 273.1 -13.4 QatarInvF $ 1.01 -0.02 1.20 1.00 3.82 1.2 -15.8 IndiaCap 93.88 - 102.00 58.02 - 112.0 -16.2
www.morningstar.co.uk
22 FINANCIAL TIMES Friday 2 June 2017

MANAGED FUNDS SERVICE

Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield

Baring European Growth Trust GBP Inc 1387.00 - -1.00 - (LF) Eq Mena Fund 13.10 - -0.16 0.00 European High Income Acc F 101.25 - 0.01 - Invesco Global Structured Equity A $ 49.84 - 0.22 0.77 Aggressive Strategy 2.3450xd - -0.0030 0.00
Baring German Growth Trust GBP Acc 873.90 - 0.90 - (LF) Greek Government Bond 22.81 - -0.07 0.00 European High Income Inc F 68.87 - -0.46 - Invesco Global Total Ret.(EUR) Bond Fund A 13.73 - 0.00 - Global USD Growth Strategy $ 1.5480 - 0.0020 0.00
Abbey Life Assurance Company Limited (UK) Franklin Templeton International Services Sarl (IRL)
100 Holdenhurst Road, Bournemouth BH8 8AL 0345 9600 900 Baring German Growth Trust GBP Inc 791.10 - 0.80 - (LF) Greek Corporate Bond 13.59 - -0.01 0.00 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland European Opportunities Inc F 101.82 - 0.44 1.44 Invesco Gold & Precious Metals A $ 5.47 - -0.01 0.00 Dealing Daily
additional fund prices can be found @ www.abbeylife.co.uk Baring Global Growth Trust GBP Inc 517.10 - 0.00 - (LF) FOF Dynamic Fixed Inc 12.41 - -0.03 0.00 Other International Funds European Opportunities Acc F 106.97 - 0.46 1.41 Invesco Greater China Equity A $ 55.29 - 0.09 -
Insurances Baring Japan Growth Trust GBP Acc 194.30 - 0.80 - (LF) FOF Real Estate 16.54 - -0.08 0.00 Franklin Emerging Market Debt Opportunities Fund Plc European Smlr Cos Acc F 249.45 - 1.82 0.84 Invesco India Equity A $ 66.04 - 0.04 - Lothbury Property Trust (UK)
Life Funds Franklin Emg Mkts Debt Opp CHFSFr 23.67 - 5.49 5.95
Baring Korea Trust GBP Acc 340.00 - -2.50 0.00 Global Bond Acc F 138.63 - -0.09 1.13 Invesco Japanese Equity Adv Fd A 4331.00 - 64.00 - 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900
Prop. Acc. Ser 2 1518.30 1598.30 6.00 - Franklin Emg Mkts Debt Opp EUR 12.94 - 0.05 5.89 Property & Other UK Unit Trusts
Baring UK Growth Trust GBP Inc 297.20 - 1.20 - Global Bond Inc F 89.46 - -0.06 1.14 Invesco Japanese Value Eq Fd A 1383.00 - 17.00 -
Selective Acc. Ser 2 1831.30 1927.60 2.70 - Cheyne Capital Management (UK) LLP (IRL) Franklin Emg Mkts Debt Opp GBP 11.09 - -0.26 6.31 Lothbury Property Trust GBP 1844.59 1988.08 20.63 3.27
Baring Strategic Bond Fund GBP Inc 117.20 - 0.20 0.31 Glbl Distribution Acc 60.10 - -0.03 4.33 Invesco Latin American Equity A $ 6.90 - -0.07 0.00
American Ser. 4 2258.70 2377.60 -14.60 - Regulated Franklin Emg Mkts Debt Opp SGD S$ 17.86 - -6.17 5.98
Baring Dynamic Capital Growth Fund GBP Acc 735.90 - 1.30 2.58 Glbl Distribution Inc 53.39 - -0.33 4.36 Invesco Nippon Small/Mid Cap Equity A 1355.00 - 9.00 0.00
Custodian Ser. 4 553.70 582.80 0.30 - Cheyne Convertibles Absolute Return Fund (D) 1422.88 - -1.70 0.00 Franklin Emg Mkts Debt Opp USD $ 18.13 - -0.27 5.87
Baring Dynamic Capital Growth Fund GBP Inc 283.90 - 0.50 2.64 Global Emerging Markets Acc F 345.42 - -1.42 0.53 Invesco Pan European Equity A EUR Cap NAV 20.61 - -0.03 0.00
Equity Ser. 4 669.30 704.50 1.00 - Cheyne Global Credit Fund (D) 124.97 - -0.03 0.00
UK Authorised Open-Ended Investment Company Global Emerging Markets Inc F 309.53 - -1.27 0.53 Invesco Pan European High Income Fd A 14.59 - -0.10 -
European Ser 4 752.20 791.80 2.00 - Cheyne European Mid Cap Fund (W) 1061.05 - 2.99 0.00
Baring Multi Asset Fund GBP Acc 174.40 - 0.40 1.01 Frontier Capital (Bermuda) Limited Global Equity (acc) F 622.31 - -0.91 0.94 Invesco Pan European Small Cap Equity A 24.23 - 0.17 0.00
Fixed Int. Ser. 4 961.40 1012.00 -2.80 - Baring Multi Asset Fund GBP Inc 163.50 - 0.40 1.03 FIL Investment Services (UK) Limited (1200)F (UK) Other International Global Equity (inc) F 557.93 - -0.81 0.95 Invesco Pan European Structured Equity A 19.06 - 0.05 0.00
Intl Ser. 4 571.70 601.80 -1.10 - 130, Tonbridge Rd, Tonbridge TN11 9DZ
Common Investment Fund Cheyne Capital Management (UK) LLP Commercial Property-GBP Class 71.42 - -0.53 - Global Equity Income Acc F 156.64 - -0.20 - Invesco UK Eqty Income A 35.51 - 0.05 0.00
Callfree: Private Clients 0800 414161
Japan Ser 4 477.20 502.30 0.70 - Baring Targeted Return Fund GBP Acc 164.70 165.30 0.40 - Other International Funds Global Real Estate-GBP C Class 45.26 - -0.50 -
Broker Dealings: 0800 414 181 Global Equity Income Inc F 121.56 - -0.16 - Invesco UK Investment Grade Bond A 1.07 - -0.01 -
Man. Ser. 4 1994.10 2099.10 -0.60 - Baring Targeted Return Fund GBP Inc 121.70 122.20 0.20 - Cheyne European Event Driven Fund (M) 143.68 - 4.28 - M & G Securities (1200)F (UK)
OEIC Funds Gbl Financial Capital Acc 99.75 - 0.00 - Invesco US Structured Equity A $ 24.32 - 0.03 - PO Box 9039, Chelmsford, CM99 2XG
Money Ser. 4 525.10 552.70 0.00 - Cheyne Real Estate Credit Holdings Fund (M) 174.46 - 0.95 0.00
Allocator World Fund N-ACC-GBP 1.57 - 0.00 0.87 Gbl Financial Capital Inc 78.11 - 0.00 - Invesco US Value Eq Fd A $ 35.62 - -0.17 0.00 www.mandg.co.uk Enq: 0800 390 390, Dealing: 0800 328 3196
Prop. Ser. 4 1087.20 1144.40 3.60 - Cheyne Real Estate Credit Holdings Fund III (M) 117.85 - 0.67 0.00 Authorised Inv Funds
BlackRock (JER) American Fund W-ACC-GBP 36.91 - 0.01 0.12 Global Opportunities Acc F 133.92 - -0.14 0.28 Invesco USD Reserve A $ 87.42 - 0.00 -
Custodian Ser 5 529.70 557.50 0.30 - Cheyne Real Estate Debt Fund Class A1 (M) 144.68 - 1.33 0.00 Charifund Inc 1629.74 - 1.51 4.39
Regulated American Special Sits W-ACC-GBP 14.44 - 0.00 0.69 Global Smaller Cos Acc F 2383.34 - 2.28 -
International Ser 5 546.90 575.70 -1.10 - BlackRock UK Property 41.85 - 0.02 2.81 Cheyne Total Return Credit Fund - December 2017 Class (M) $ 229.77 - 1.04 0.00 Charifund Acc 24086.15 - 22.32 4.25
Asia Pacific Ops W-Acc 1.69 - 0.01 1.00 Global Smaller Cos Inc F 2272.18 - 2.17 -
Managed Ser 5 1907.70 2008.10 -0.50 - BLK Intl Gold & General $ 6.10 6.43 0.04 0.00 Cheyne Total Return Credit Fund 2020 (M) $ 134.41 - 3.20 0.00 Invesco Global Asset Management Ltd (IRL) M&G Corporate Bond A Acc 69.58 - -0.21 2.53
Cash Fund Y-Acc-GBP 1.00 - 0.00 0.08 Global Targeted Rets Acc 59.91 - 0.20 0.98
price updated (D) daily, (W) weekly, (M) monthly Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200
Money Ser 5 514.10 541.20 0.00 - Cash Fund Y-Inc-GBP 1.00 - 0.00 - M&G Corporate Bond A Inc 41.81 - -0.13 3.67
High Income Acc F 936.12 - 1.56 2.99 FCA Recognised
Property Ser 5 1040.00 1094.70 3.40 - Asian Dividend Fund W-ACC-GBP 1.62 - 0.01 1.93
Fundsmith LLP (1200)F (UK) M&G Dividend A Inc 68.89 - 0.21 4.12
BLI - Banque de Luxembourg Investments S.A. High Income Inc F 492.66 - 0.83 - Invesco Stlg Bd A QD F 2.70 - -0.02 -
PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815
Pension Funds Consistent Unit Tst Mgt Co Ltd (1200)F (UK) Asian Dividend Fund W-INC-GBP 1.46 - -0.01 2.66 M&G Dividend A Acc 733.29 - 2.18 2.81
FCA Recognised www.fundsmith.co.uk, enquiries@fundsmith.co.uk High Yield Fund Acc 117.91 - 0.06 5.70 Invesco Asian Equity A $ 8.06 - 0.03 0.25
American 2732.80 2876.70 -20.30 - Stuart House, St John's Street, Peterborough, PE1 5DD M&G Episode Income A Acc 162.62xd - -0.23 2.01
BL-Equities Europe B 7003.35 - 14.31 0.00 China Consumer Fund W-ACC-GBP 2.42 - 0.00 - Authorised Inv Funds High Yield Fund Inc 43.24 - 0.02 5.89 Invesco ASEAN Equity A $ 95.58 - 0.34 0.12
Equity 6024.60 6341.70 9.90 - Dealing & Client Services 0345 850 8818
BL-Equities America B $ 6467.16 - 14.85 0.00 Emerging Asia Fund W-ACC-GBP 1.34 - 0.01 0.53 Fundsmith Equity T Acc 341.47 - 1.49 - Invesco Bond A $ 27.53 - -0.35 - M&G Episode Income A Inc 127.62xd - -0.51 3.44
Authorised Inv Funds Hong Kong & China Acc F 640.62 - -0.46 0.51
European 1582.80 1666.10 4.80 - Fundsmith Equity T Inc 318.91 - 1.39 - M&G Episode Growth A Inc 58.56 - -0.09 2.38
BL-Equities Japan B 18143.00 - 223.00 - Consistent UT Inc 59.17 62.81 0.01 3.73 Emerging Eur Mid East and Africa W 2.08 - -0.01 1.69 Income & Growth Acc F 1129.92 - 1.01 - Invesco Continental Eurp Small Cap Eqty A $ 259.92 - 1.22 0.00
Fixed Int. 1798.70 1893.40 -6.30 - M&G Global Basics A Inc 874.56 - 1.32 1.63
BL-Emerging Markets B 168.69 - -1.19 0.00 Consistent UT Acc 145.70 154.80 0.00 3.73 Enhanced Income Fund W-ACC-GBP 1.53 - 0.00 6.06 Income & Growth Inc F 464.44 - 0.41 - Invesco Emerging Markets Equity A $ 43.75 - -0.12 0.00
International 1263.80 1330.30 -3.10 - M&G Global Basics A Acc 1334.76 - 2.00 0.41
BL-Global Equities B 828.53 - -1.80 0.00 Practical Investment Inc 240.80 257.10 0.20 2.91 Enhanced Income Fund W-INC-GBP 1.11 - -0.01 6.40 Invesco Emerging Markets Bond A $ 21.87 - -0.57 4.98
Japan 522.40 549.90 0.90 -
GAM Income Acc F 3550.66 - 5.05 -
BL-Global 30 B 1415.84 - -1.24 0.00 Practical Investment Acc 1231.00 1315.00 1.00 2.91 European Fund W-ACC-GBP 15.23 - 0.06 - funds@gam.com, www.jbfundnet.com Invesco Continental European Equity A 9.62 - 0.01 - M&G Global Dividend Fund A Acc 264.57 - -0.91 1.39
Income Inc F 1881.88 - 2.67 -
Managed 5341.00 5622.10 -4.90 - Regulated M&G Global Dividend Fund A Inc 198.40 - -0.68 2.87
BL-Global 50 B 1747.56 - -1.80 0.00 European Fund W-INC-GBP 17.13 - 0.06 - Japan Acc F 416.27 - 3.74 0.60 Invesco Gilt A 16.36 - -0.13 1.02
Property 2809.60 2957.50 11.60 - LAPIS TOP 25 DIV.YLD-D 107.24 - 0.06 - M&G Glbl Emrgng Mkts A Acc 270.89 - -3.33 0.80
BL-Global 75 B 2423.21 - -2.59 0.00 European Opportunities W-ACC-GBP 4.72 - 0.01 - Japanese Smlr Cos Acc F 112.17 - 0.24 0.00 Invesco Global Small Cap Equity A NAV $ 144.98 - 0.32 -
Security 1481.90 1559.90 0.00 - DAVIS Funds SICAV (LUX)
M&G Glbl Emrgng Mkts A Inc 255.21 - -3.14 1.61
BL-Global Flexible EUR B 163.35 - -0.01 0.00 Extra Income Fund Y-ACC-GBP 1.25 - 0.00 3.68 Latin America Acc F 142.49 - -1.60 0.80 Invesco Global High Income A NAV $ 12.31 - -0.34 6.67
Regulated
Selective 2339.50 2462.60 -2.50 - M&G Global High Yield Bond A Inc 51.78 - -0.25 4.70
Davis Value A $ 46.61 - -0.23 0.00 Extra Income Fund Y-GACC-GBP 1.27 - -0.01 3.81 GYS Investment Management Ltd (GSY) Latin America Inc F 117.61 - -1.31 0.81 Invesco Gbl R/Est Secs A GBP F F 9.49 - 0.02 -
Formerly Hill Samuel Life Assurance Ltd M&G Global High Yield Bond A Acc 130.27 - -0.01 3.28
Davis Global A $ 34.92 - -0.28 0.00 Extra Income Fund Y-GINC-GBP 1.29 - 0.00 3.86 Regulated Invesco Global Health Care A $ 121.67 - 0.44 0.00
100 Holdenhurst Road, Bournemouth, BH8 8AL 0345 6023 603 Managed Growth Acc F 213.93 - -0.15 0.44
Extra Income Fund Y-INC-GBP 1.29 - 0.00 - Taurus Emerging Fund Ltd $ 187.50 191.32 10.42 0.00 Invesco Global Select Equity A $ 14.58 - 0.00 0.48 M&G Global Macro Bond Fund A Acc 132.13xd - -0.08 1.18
Managed Ser A (Life) 1890.10 2000.10 4.40 - Managed Growth Inc F 175.94 - -1.25 0.44
Fidelity Short Dated Corporate Bond Fund Y - Gross Inc 10.03 - -0.12 - Invesco Jap Eqty Core A $ 20.57 - 0.21 - M&G Global Macro Bond Fund A Inc 89.14xd - -0.05 2.58

Asset Management
Managed Ser A (Pensions) 1292.20 1360.30 3.50 - Managed Income Acc F 197.50 - -0.04 2.41
M&G Managed Growth A Inc 105.54 - -0.11 1.41
Formerly Target Life Assurance Ltd
100 Holdenhurst Road, Bournemouth, BH8 8AL 0345 6023 603
Fidelity Short Dated Corporate Bond Fund Y - Gross Acc 10.26
Global Dividend Fund W-ACC-GBP 2.02
-
-
-0.01
0.01
-
Generali Worldwide
- PO Box 613, Generali House, Hirzel Street, St Peter Port, Guernesy, GY1 4PA 01481 714108
Managed Income Inc F
Money Acc F
Asset Management 115.62
90.37
-
-
-1.17 2.45
-0.01 0.13
Invesco Japanese Equity A
Invesco Korean Equity A
$ 21.99
$ 29.35
-
-
0.21 0.00
-0.31 - M&G Optimal Income A Inc Asset Management 149.99 - -0.03 3.07
Managed (Life) 1910.80 2011.40 4.40 - Global Dividend Fund W-INC-GBP 1.76 - 0.00 - International Insurances Invesco PRC Equity A $ 61.73 - 0.10 - M&G Optimal Income A Acc 206.18 - -0.05 1.68
Monthly Income Plus Acc F 326.27 - 0.19 -
Managed Growth (Life) 628.70 661.80 2.50 - CCLA Investment Management Ltd (UK)
Global Enhanced Income W-ACC-GBP 1.66 - 0.01 -
Global Multi-Strategy Managed $ 5.33 5.74 0.02 0.00 M&G Recovery GBP A Inc 142.72 - -0.69 1.95
Monthly Income Plus Inc F 111.84 - -0.45 - Invesco Pacific Equity A $ 59.38 - 0.16 -
Senator House 85 Queen Victoria Street London EC4V 4ET UK Multi-Strategy Managed 5.72 6.17 0.04 0.00
Managed (Pensions) 7755.90 8164.10 21.50 - Global Enhanced Income W-INC-GBP 1.39 - -0.01 - Invesco Global Technology A $ 19.31 - -0.04 - M&G Recovery GBP A Acc 326.54 - -1.58 0.58
Authorised Inv Funds Pacific Acc F 1446.28 - 2.46 -
Managed Growth (Pensions) 796.30 838.20 3.70 - Dodge & Cox Worldwide Funds (IRL) EU Multi-Strategy Managed 3.26 3.52 0.03 0.00 M&G Strategic Corp Bond A Inc 76.85xd - -0.86 3.63
Diversified Income 1 Units GBP Inc 1.59 1.59 0.00 - Global Focus Fund W-ACC-GBP 20.13 - -0.08 - Pacific Inc F 1315.53 - 2.24 - Invesco UK Eqty A 9.35 - -0.01 1.67
additional fund prices can be found on our website 6 Duke Street,St.James,London SW1Y 6BN Global Bond USD $ 3.66 3.94 0.01 0.00 M&G Strategic Corp Bond A Acc 115.79xd - -0.23 2.45
Diversified Income 2 Units GBP Inc 1.53 1.53 0.00 - Global High Yield Fund Y-ACC-GBP 13.88 - 0.01 5.50 Tactical Bond Acc F 72.30 - -0.01 1.81
www.dodgeandcox.worldwide.com 020 3713 7664
The Public Sector Deposit Fund Global High Yield Fund Y-GACC-GBP 14.37 - 0.01 4.89 M&G UK Income Distribution A Acc 7132.57xd - 3.64 2.94
FCA Recognised Tactical Bond Inc F 61.26 - 0.00 1.83 Janus Henderson Investors (UK)
The Public Sector Deposit Fund-share class 1 F 100.00 - 0.00 0.27 Dodge & Cox Worldwide Funds plc - Global Bond Fund Global High Yield Fund Y-GINC-GBP 10.80 - -0.03 4.84 Genesis Asset Managers LLP M&G UK Income Distribution A Inc 803.01xd - -15.88 4.18
UK Focus Acc F 249.39 - -0.54 1.77 PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
The Public Sector Deposit Fund-share class 2 F 100.00 - 0.00 0.00 EUR Accumulating Class 12.92 - -0.05 0.00 Global High Yield Fund Y-INC-GBP 10.82 - -0.03 4.84 Other International Funds www.janushenderson.com M&G UK Inflation Lnkd Corp Bnd A Acc 117.80 - -0.16 0.06
UK Focus Inc F 199.94 - -0.43 1.80
The Public Sector Deposit Fund-share class 3 F 100.00 - 0.00 0.00 EUR Accumulating Class (H) 10.16 - 0.00 - Global Property Fund W-ACC-GBP 1.69 - 0.00 - Emerging Mkts NAV 7.47 - -0.05 0.00 Authorised Inv Funds M&G UK Inflation Lnkd Corp Bnd A Inc 114.87 - -0.15 1.21
UK Growth Acc F 659.98 - -0.84 1.94
The Public Sector Deposit Fund-share class 4 F 100.00 - 0.00 0.21 EUR Distributing Class 11.66 - -0.04 3.80 Global Property W Inc 1.47 - 0.01 - Asia Pacific Capital Growth A Acc 1035.00 - 0.00 -
UK Growth Inc F 401.60 - -0.51 1.98
The Public Sector Deposit Fund-share class 5 F 100.00 - 0.00 0.00 EUR Distributing Class (H) 9.15 - 0.00 - Global Special Sits W-ACC-GBP 34.82 - -0.01 - Asian Dividend Income Inc 107.50 112.93 0.13 6.45
HPB Assurance Ltd UK Smaller Cos Equity Acc F 1173.81 - 0.97 - M & G Securities Ltd (UK)
GBP Distributing Class 12.37 - -0.02 3.73 Index Emerging Markets P-Acc 1.44 - 0.00 - Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Cautious Managed A Acc 267.70 - 0.10 3.14
UK Smaller Cos Equity Inc F 894.58 - 0.73 - Property & Other UK Unit Trusts
Algebris Investments (IRL)
International Insurances Cautious Managed A Inc 157.70 - 0.00 3.20
Regulated GBP Distributing Class (H) 9.35 - 0.00 3.76 Index Emerging Markets P-Inc-GBP 1.22 - -0.01 - Charibond 129.48 - -0.50 3.56
CCLA Investment Management Ltd (UK) UK Strategic Income Acc F 204.65 - 0.19 -
Holiday Property Bond Ser 1 0.53 - 0.00 0.00 China Opportunities A Acc 1234.00 - 4.00 0.00
Algebris Financial Credit Fund - Class I EUR 150.85 - -0.25 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET USD Accumulating Class $ 10.47 - 0.01 0.00 Index Europe ex UK Fund P-Inc-GBP 1.35 - -0.02 2.06 (Accum Units) 4046.26 - -15.60 3.56
UK Strategic Income Inc F 143.77 - 0.13 -
Property & Other UK Unit Trusts Dodge & Cox Worldwide Funds plc-Global Stock Fund Holiday Property Bond Ser 2 0.64 - 0.00 0.00 Emerging Markets Opportunities A Acc 202.10 - -0.60 -
Algebris Financial Income Fund - Class I EUR 135.58 - -0.91 0.00 Index Europe ex UK P-Acc 1.42 - 0.00 2.01 NAACIF 86.96 - -0.06 3.96
US Equity Acc F 723.93 - -4.60 0.00
CBF Church of England Funds USD Accumulating Share Class $ 20.06 - -0.05 0.00 Index Japan Fund P-Inc-GBP 1.45 - -0.01 1.68 European Growth A Acc 236.80 - 0.80 - (Accum Units) 8315.20 - -5.01 3.86
Algebris Financial Equity Fund - Class B EUR 119.97 - -1.57 0.00 Invesco Perpetual Funds (No Trail)
Investment Inc 1591.66 1609.26 -4.68 3.78 GBP Accumulating Share Class 25.62 - -0.10 0.00 European Selected Opportunities A Acc 1677.00 - 0.00 0.63
Algebris Asset Allocation Fund - Class B EUR 98.18 - -0.05 0.00 Index Japan P-Acc 1.51 - 0.01 - Hargreaves Lansdown Fd Mgrs (1100)F (UK) Asian (No Trail) Acc F 302.57 - 0.37 - M&G Property Portfolio A Acc 128.08 128.08 0.01 2.93
Investment Acc 3426.01 3463.91 -10.08 - GBP Distributing Share class 18.44 - -0.07 0.73 PO Box 55736, 50 Bank Street, Canary Wharf London E14 1BT Fixed Interest Monthly Income A Inc 22.43 23.40 -0.19 5.09
Algebris Macro Credit B EUR Acc 107.38 - -0.29 - Index Pacific ex Japan P-Acc 1.45 - 0.00 - Asian (No Trail) Inc F 269.39 - 0.33 - M&G Property Portfolio A Inc 113.11 113.11 0.01 2.97
Global Equity Inc 181.23 183.23 -0.54 4.31 EUR Accumulating Share Class 26.82 - -0.17 0.00 Enquiries 0117 90090000 Global Care Growth A Inc 267.70 - 0.30 -
Index Pacific ex Japan P-INC-GBP 1.16 - -0.02 - Asian Equity Income (No Trail) Acc F 169.14 - 0.52 -
Global Equity Acc 281.98 285.10 -0.85 - www.hl.co.uk
GBP Distributing Class (H) 10.99 - -0.03 - Index UK Fund P-INC-GBP 1.17 - -0.01 - Global Equity Income A Inc 61.65 - -0.86 -
Authorised Inv Funds Asian Equity Income (No Trail) Inc 133.29 - -1.61 -
The Antares European Fund Limited UK Equity Inc 170.54 172.08 0.09 4.05
M & G (Guernsey) Ltd (GSY)
Dodge & Cox Worldwide Funds plc-International Stock Fund Global Growth Fund 2916.37 3042.00 6.01 -
Other International Index UK P-Acc 1.29 - 0.00 - Hargreaves Lansdown Funds Balanced Risk 6 No Trail Acc 116.60 - -0.09 0.00 Regulated
UK Equity Acc 267.91 270.33 0.14 - USD Accumulating Share Class $ 16.49 - -0.02 0.00 Global Technology A Acc 1498.00 - -5.00 0.00
AEF Ltd Usd (Est) $ 674.59 - 3.94 - Index US Fund P-Inc-GBP 1.63 - -0.01 1.58 Unit Trust Balanced Risk 8 No Trail Acc 122.83 - -0.11 0.00 The M&G Offshore Fund Range
Fixed Interest Inc 171.96 172.82 -0.33 3.96 EUR Accumulating Share Class 17.28 - -0.09 0.00 HL Multi-Manager Special Situations Trust A Acc 356.09 374.83 0.90 0.59 Multi-Manager Absolute Return A Acc 142.30 - 0.00 0.07 Corporate Bond A 1391.78 - -4.33 3.98
AEF Ltd Eur (Est) 669.92 - 3.71 0.00 Index US P-Acc 1.80 - 0.00 1.56 Balanced Risk 10 No Trail Acc 129.56 - -0.14 -
Fixed Interest Acc 554.82 557.60 -1.08 - Dodge & Cox Worldwide Funds plc-U.S. Stock Fund Multi-Manager Active A Acc 217.50 - 0.00 0.39
Index World Fund P-Inc-GBP 1.47 - -0.01 1.77 HL Multi-Manager Special Situations Trust M Acc 356.07 374.81 0.86 0.59 Corporate Bond (No Trail) Acc F 178.28 - -0.10 - Global Basics X 3231.38 - 4.76 0.17
Property Fund Inc 131.73 136.14 0.05 5.64 USD Accumulating Share Class $ 22.65 - -0.06 0.00
Index World P-Acc 1.62 - 0.00 1.74 HL Multi-Manager Income & Growth Trust A Acc 196.85 207.14 0.65 3.92 Multi-Manager Distribution A Inc 137.00 - 0.20 2.94 Global Dividend A 154.16 - -0.53 2.66
Corporate Bond (No Trail) Inc F 120.48 - -0.07 -
Arisaig Partners GBP Accumulating Share Class 27.35 - -0.13 0.00
Japan Fund W-ACC-GBP 3.52 - 0.02 - HL Multi-Manager Income & Growth Trust M Acc 196.84 207.13 0.64 3.92 Multi-Manager Diversified A Acc 85.16 - 0.11 3.54 Global Leaders A 4420.39 - 16.92 1.03
Other International Funds Distribution (No Trail) Acc F 187.52 - 0.20 -
GBP Distributing Share Class 17.22 - -0.08 0.64
HL Multi-Manager Income & Growth Trust A Inc 111.06 116.89 0.05 4.02 Multi-Manager Global Select Acc 232.10 - 0.30 - Global High Yield Bond X 1022.76 - -0.17 5.26
Arisaig Africa Consumer Fund Limited $ 12.11 - 0.06 - CCLA Fund Managers Ltd (UK) Japan Smaller Cos Fund W-ACC-GBP 3.13 - 0.03 - Distribution (No Trail) Inc F 116.14 - -0.43 -
EUR Accumulating Share Class 26.15 - -0.18 0.00
Senator House 85 Queen Victoria Street London EC4V 4ET MoneyBuilder Balanced Y-ACC-GBP 0.58 - 0.00 3.05 HL Multi-Manager Income & Growth Trust M Inc 111.06 116.88 0.05 4.01 Multi-Manager Income & Growth A Acc 174.20 - 0.40 - Global Macro Bond A 13326.66 - -7.47 2.52
Arisaig Asia Consumer Fund Limited $ 75.27 - -0.34 - Emerging European (No Trail) Acc F 108.04 - -0.97 -
Property & Other UK Unit Trusts GBP Distributing Class (H) 10.40 - -0.03 -
MoneyBuilder Balanced Y-INC-GBP 0.63 - -0.01 3.68 HL Multi-Manager Balanced Managed Trust A Acc 230.52 242.45 0.44 1.12 Multi-Manager Income & Growth A Inc 154.90 - 0.30 2.02 North American Dividend A 224.16 - -1.18 1.77
Arisaig Global Emerging Markets Consumer Fund $ 10.81 - -0.01 - Emerging European (No Trail) Inc F 93.38 - -0.84 -
COIF Charity Funds (UK)
MoneyBuilder Dividend Y-INC-GBP 1.45 - -0.01 - HL Multi-Manager Balanced Managed Trust M Acc 230.53 242.46 0.44 1.13 Multi-Manager Managed A Acc 273.40 - 0.00 0.52 Optimal Income A 148.61 - -0.03 3.96
Arisaig Global Emerging Markets Consumer UCITS 12.48 - -0.02 - Investment Inc 1436.61 1452.50 10.61 3.62 European Equity (No Trail) Acc F 211.28 - 0.16 -
MoneyBuilder Growth Fund Y-INC-GBP 0.83 - 0.00 - HL Multi-Manager Equity & Bond Trust A Inc 121.80 128.07 -0.03 2.28 Multi-Manager Managed A Inc 266.50 - 0.10 0.53 Recovery A 12333.41 - -59.48 2.17
Arisaig Global Emerging Markets Consumer UCITS STG 13.76 - -0.04 - Investment Acc 14578.55 14739.80 107.64 - European Equity (No Trail) Inc F 171.54 - 0.13 -
MoneyBuilder Income Fund Y-ACC-GBP 12.81 - -0.04 - HL Multi-Manager Equity & Bond Trust M Inc 121.81 128.08 -0.03 2.28 Sterling Bond Acc 221.04 230.58 -0.77 - Strategic Corproate Bond A 140.79 - -0.29 3.97
Arisaig Latin America Consumer Fund $ 25.88 - -0.14 - Ethical Invest Inc 221.44 223.89 1.57 3.73 European Equity Income (No Trail) Acc F 207.84 - 0.22 -
MoneyBuilder Income Fund Y-GACC-GBP 14.77 - -0.05 - HL Multi-Manager Equity & Bond Trust A Acc 171.00 179.79 0.25 2.25 Sterling Bond Inc 66.42 69.28 -0.23 2.28 UK Inf Lkd Corp Bd A Inc 111.34 - -0.15 2.19
Ethical Invest Acc 301.10 304.43 2.14 - European Equity Income (No Trail) Inc F 150.12 - 0.12 -
MoneyBuilder Income Fund Y-GINC-GBP 1.26 - -0.01 - HL Multi-Manager Equity & Bond Trust M Acc 171.01 179.80 0.25 2.25 Strategic Bond A Inc 127.50 - -0.10 4.51 UK Select A 1745.73 - 0.12 1.08
Global Equity Inc 169.77 171.65 1.52 4.41 European ex UK Enhanced Index (No Trail) Acc F 125.97 - 0.10 -
MoneyBuilder Income Fund Y-INC-GBP 1.26 - 0.00 - HL Multi-Manager Strategic Assets A Acc 114.66 118.17 0.11 1.18 UK & Irish Smaller Companies A Acc 637.10 - -0.20 0.00
Global Equity Acc 267.26 270.22 2.40 - European ex UK Enhanced Index (No Trail) Inc F 124.57 - 0.08 -
Multi Asset Adventurous N-ACC-GBP 1.39 - 0.00 1.08 HL Multi-Manager Strategic Assets A Inc 113.25 116.72 0.10 1.19 UK Absolute Return A Acc 157.30 - 0.20 0.00
Fixed Interest Inc 141.31 142.02 0.31 4.14 Dragon Capital Group European High Income (No Trail) Acc F 209.91 - 0.02 - MMIP Investment Management Limited (GSY)
1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam Multi Asset Alloc Advent N-ACC-GBP 1.35 - 0.00 0.96 HL Multi-Manager Strategic Bond Trust A Acc 183.63 189.30 0.18 2.03 UK Alpha A Acc 142.80 - 0.10 - Regulated
Fixed Interest Acc 858.30 862.60 1.90 - European High Income (No Trail) Inc F 142.78 - -0.96 -
Fund information, dealing and administration: funds@dragoncapital.com HL Multi-Manager Strategic Bond Trust M Acc 183.63 189.30 0.18 2.03 UK Equity Income & Growth A Inc 669.80 - -1.00 3.35 Multi-Manager Investment Programmes PCC Limited
Property Inc 112.89 116.68 0.75 5.67 Multi Asset Alloc Def N-ACC-GBP 1.19 - 0.00 1.23 European Opportunities (No Trail) Acc F 225.69 - 0.98 1.82
Other International Funds UK Index A Acc 616.80 - 0.10 - UK Equity Fd Cl A Series 01 2707.53 2734.99 38.81 0.00
Multi Asset Alloc Def N-GACC-GBP 1.20 - 0.00 1.22 HL Multi-Manager Strategic Bond Trust A Inc 148.21 152.79 -0.11 2.06 European Opportunities (No Trail) Inc F 206.77 - 0.89 1.86
Local Authorities Property Fd (LAMIT) (UK) Vietnam Property Fund (VPF) NAV $ 0.80 - 0.01 0.00
Artemis Fund Managers Ltd (1200)F (UK) HL Multi-Manager Strategic Bond Trust M Inc 148.21 152.79 -0.12 2.05 UK Property A Acc 193.08 203.24 0.05 - Diversified Absolute Rtn Fd USD Cl AF2 $ 1597.89 - 17.46 0.00
Property 283.31 307.19 -0.54 4.81 Multi Asset Alloc Growth N-ACC-GBP 1.26 - 0.00 1.01 European Smaller Companies (No Trail) Acc F 308.73 - 2.25 1.22
57 St. James's Street, London SW1A 1LD 0800 092 2051 HL Multi Manager Emerging Markets A Acc 123.99 127.79 0.11 0.63 UK Property A Inc 97.68 102.81 0.03 - Diversified Absolute Return Stlg Cell AF2 1601.47 - 16.27 0.00
Multi Asset Alloc Strat N-ACC-GBP 1.24 - 0.00 1.07 Global Balanced Index (No Trail) Acc F 195.96 - -0.04 -
Authorised Inv Funds Global Equity Fund A Lead Series 1351.48 1356.88 -16.72 0.00
DSM Capital Partners Funds (LUX) Multi Asset Balanced Inc N-GINC-GBP 1.14 - -0.01 4.35 HL Multi-Manager European A Acc 140.10 144.42 1.60 0.61 Global Bond (No Trail) Acc F 156.32 - -0.10 1.38
UK Tracker A Acc 278.00 - 0.10 -
Artemis Capital R ACC 1496.39 1580.17 -7.99 1.84 CG Asset Management Limited (IRL) www.dsmsicav.com
Multi Asset Balanced Inc N-INC-GBP 1.14 - -0.01 3.65 HL Multi-Manager UK Growth A Acc 130.29 134.31 0.27 1.57 US Growth A Acc 968.80 - -0.60 0.00
Northern Trust, George's Court, 54-62 Townsend Street, Dublin 2, Rep of Ireland Regulated Global Bond (No Trail) Inc F 138.78 - -0.09 1.39
Artemis European Growth R Acc 335.24 353.83 0.33 0.88
00 353 1 434 5098 Multi Asset Defensive N-ACC-GBP 1.22 - 0.00 1.04 HL Multi-Manager High Income A Inc 112.07 115.53 -0.13 4.14 Glbl Distribution Acc (No Trail) 122.03 - -0.07 3.81 Manek Investment Mgmt Ltd (1000)F (UK)
Artemis European Opps R Acc 103.43 109.18 0.58 - DSM Global Growth I2 Acc 165.46 - -1.03 0.00
FCA Recognised Multi Asset Defensive N-GACC-GBP 1.22 - -0.01 1.04 HL Multi-Manager High Income A Acc 117.40 121.03 0.25 4.04 Glbl Distribution Inc (No Trail) 108.41 - -0.68 3.89 P.O.Box 100, Swindon SN1 1WR 0844 800 9401
Artemis Global Emg Mkts I GBP Acc 123.54 - -0.50 - DSM Global Growth I1 Acc 122.20 - 0.19 -
Capital Gearing Portfolio Fund Plc 31416.68 31732.44 72.78 0.53 Authorised Inv Funds
DSM US Large Cap Growth I3 $ 120.72 - -0.09 - Multi Asset Growth Fund N-ACC-GBP 1.31 - 0.00 1.04 Gbl Emerging Markets (No Trail) Acc F 228.16 - -0.94 0.87
Artemis Global Emg Mkts I GBP Dist 117.32 - -0.48 - Growth Fd Acc 53.93 57.00 -0.17 -
CG Portfolio Fund Plc Multi Asset Inc & Growth N-INC-GBP 1.16 - -0.01 3.92
DSM US Large Cap Growth A 111.71 - -0.76 - Haussmann Gbl Emerging Markets (No Trail) Inc F 209.79 - -0.86 0.88
Artemis Global Energy R Acc 29.07 30.83 -0.27 0.41
Absolute Return M Inc GBP 115.02 116.18 0.10 0.31
DSM US Large Cap Growth I2 111.75 - -0.75 - Multi Asset Income Fund N-GINC-GBP 1.11 - -0.01 - Other International Funds Global Equity (No Trail) acc F 276.85 - -0.40 1.31
Artemis Global Growth R Acc 240.23 253.52 -0.29 0.89
Real Return Cls A 199.49 201.51 -0.51 1.80 Haussmann Cls A $ 2748.03 - 56.20 0.00 Milltrust International Managed Investments ICAV (IRL)
Multi Asset Income Fund N-INC-GBP 1.11 - -0.01 - Global Equity (No Trail) inc F 252.18 - -0.37 1.33
Artemis Global Income R Acc 122.85 129.67 -0.43 - mimi@milltrust.com, +44(0)20 8123 8369 www.milltrust.com
Dollar Fund Cls D 155.80 157.38 -0.44 1.86 Haussmann Cls C 2352.02 - 46.23 0.00
Fidelity Asia Fund W-ACC-GBP 11.85 - 0.01 1.02 Global Equity Income (No Trail ) Acc F 326.54 - -0.42 -
Artemis Global Income R Inc 94.64 99.90 -0.33 -
Capital Value Fund Cls V 151.69 153.22 0.16 0.43 Dynasty AM SICAV- UCITS V (LUX) Kames Capital ICVC (UK) Regulated
Multi Asset Open Advent N-ACC-GBP 1.32 - 0.00 - Haussmann Cls D SFr 1234.68 - 24.18 0.00 Global Equity Income (No Trail) Inc F 253.42 - -0.33 - Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA
Artemis Global select R Acc 96.40 101.69 0.09 0.00 16, Avenue Marie-Thrse L-2132 Luxembourg British Innovation Fund 99.74 - - -
Dollar GBP Hedged Inc 99.10 100.11 0.07 -
Authorised Multi Asset Open Defen N-ACC-GBP 1.22 - 0.00 1.34 Global ex UK Core Equity Index ( No Trail) Acc F 240.29 - 0.02 - 0800 358 3009 www.kamescapital.com
Artemis High Income R Inc 80.71 85.81 0.02 -
Multi Asset Open Defen N-GACC-GBP 1.23 - 0.00 1.33 Global ex UK Enhanced Index ( No Trail) Acc F 278.35 - -0.26 2.27 Authorised Funds
Dynasty Global Convertibles A EUR 110.99 - -0.09 0.00
Artemis Income R Acc 417.08 442.10 1.32 -
Dynasty Global Convertibles A CHFSFr 108.83 - -0.08 0.00 Multi Asset Open Growth N-ACC-GBP 1.29 - 0.00 1.16 Global ex UK Enhanced Index (No Trail) Inc F 113.92 - -0.11 -
Diversified Monthly Inc B Acc 132.30 - 0.18 4.88 Marlborough Fd Managers Ltd (1200)F (UK)
Artemis Income R Inc 229.40 243.16 0.73 - Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500
Diversified Monthly Inc B Inc 111.41 - -0.35 5.08
Dynasty Global Convertibles A USD $ 112.18 - -0.08 0.00 Multi Asset Open Strat N-ACC-GBP 1.27 - 0.00 1.37 Gbl Fin Cap No Trail Acc 204.85 - 0.00 -
Artemis Monthly Dist R Inc 72.42 76.70 -0.62 - www.marlboroughfunds.com
Diversified Growth B Acc 1.56 - 0.00 2.80
Dynasty Global Convertibles B EUR 111.77 - -0.08 0.00 Multi Asset Strategic N-ACC-GBP 1.29 - 0.00 1.00 Gbl Fin Cap No Trail Inc 160.45 - 0.00 - Authorised Inv Funds
Artemis Pan-Euro Abs Ret GBP 122.27 - -0.39 -
Ethical Cautious Managed B Acc 1.34 - 0.00 1.85
Dynasty Global Convertibles B CHFSFr 105.81 - -0.08 - Open World Fund N-ACC-GBP 1.53 - 0.01 0.18 Global Opportunities (No Trail) Acc F 347.29 - -0.37 0.64 Balanced 192.30 202.58 0.20 0.80
Artemis Strategic Assets R Acc 83.91 88.82 -0.09 0.00
Ethical Cautious Managed B Inc 1.23 - 0.00 1.87
Dynasty High Yield 2021 A EUR 103.09 - -0.01 0.00 Special Situations Fund W-ACC-GBP 35.42 - -0.07 - Global Smaller Companies (No Trail) Acc F 350.91 - 0.34 - Bond Income 51.97 54.99 -0.57 4.03
Artemis Strategic Bond R M Acc 93.61 99.26 0.01 3.56 Hermes Investment Funds Plc (IRL) Ethical Corporate Bond B Acc 1.88 - -0.01 3.08
Dynasty Corporate Bonds 1-3 A EUR 101.82 - 0.02 - Sterling Core Plus Bond GMACC 12.35 - -0.09 2.32 Global Smaller Companies (No Trail) Inc F 333.30 - 0.32 - Cautious Inc 92.50 97.48 0.29 1.14
Artemis Strategic Bond R M Inc 57.38 60.84 -0.18 3.62 Canada Life Investments (UK) Hermes Investment Management Limited, 1 Portsoken Street, London E1 8HZ +44 (0) 207 680 2121
Ethical Corporate Bond B Inc 1.05 - -0.01 3.11
1-6 Lombard Street, EC3V 9JU. Dealing 0345 606 6180 Dynasty Corporate Bonds 1-3 B EUR 101.40 - 0.03 - Sterling Core Plus Red Dur 11.17 - -0.01 2.10 FCA Recognised Global Targeted Income Fund Acc (No Trail) 105.46 - 0.21 - Defensive A Inc 114.76 114.76 0.04 0.00
Artemis Strategic Bond R Q Acc 93.79 99.44 0.01 3.60
Ethical Equity B Acc 2.22 - 0.00 2.04
Authorised Inv Funds Strategic Bond Fund Y-ACC-GBP 1.20 - 0.00 3.02 Hermes Abs Return Credit Fund Class F Acc 1.23 1.23 -0.01 0.00 Global Targeted Income Fund Inc (No Trail) 107.19 - 0.50 - Emerging Markets 318.88 318.88 -1.49 1.57
Artemis Strategic Bond R Q Inc 57.63 61.11 0.00 3.68
Asia Pacific C Acc 10.53 - -0.01 - High Yield Bond B Acc 2.68 - 0.00 3.91
Strategic Bond Fund Y-GACC-GBP 1.20 - 0.00 3.07 Hermes Abs Return Credit Fund Class R Acc 2.00 2.00 -0.02 0.00 Global Targeted Rets (No Trail) Acc 121.85 - 0.42 1.36 ETF Global Growth A 189.33 189.33 0.62 0.00
Artemis UK Select Fund Class R Acc 528.10 558.39 -0.31 1.69
Balance C Acc 1.81 - 0.00 1.76 High Yield Bond B Inc 1.00 - 0.00 3.93
Strategic Bond Fund Y-GINC-GBP 1.24 - 0.00 2.97 Hermes Asia Ex-Japan Equity Fund Class F Acc 2.38 2.38 -0.02 0.00 High Income (No Trail) Acc F 201.73 - 0.34 - ETF Commodity A 79.21 79.21 -0.13 0.00
Artemis UK Smaller Cos R Acc 1542.50 1650.82 2.43 0.99
Corporate Bond C Acc 2.60 - -0.01 - Investment Grade Bond B Acc 177.36 - -0.42 2.22
Strategic Bond Fund Y-INC-GBP 1.24 - 0.00 - Hermes Asia Ex-Japan Equity Fund Class R Acc 4.28 4.28 -0.03 0.00 High Income (No Trail) Inc F 141.50 - 0.24 - European Multi-Cap 479.15 479.15 2.34 0.20
Artemis UK Special Sits R Acc 599.02 635.71 0.91 1.46
Investment Grade Bond B Inc 1.25 - 0.00 2.75
Asset Management
European C Acc 1.40 - 0.00 - Target 2020 A-ACC-GBP 0.65 - -0.01 - Hermes Europe Ex-UK Equity Fund Class F Acc 1.97 1.97 0.01 - High Yield Fund (No Trail) Acc 246.25 - 0.13 5.68 Extra Income 87.04 92.11 0.04 3.67
Artemis US Abs Ret I Acc 111.42 - 0.03 0.00

Asset Manageme
Global Bond C Inc 1.12 - 0.00 - Sterling Corporate Bond B Acc 0.82 - 0.00 2.76
Target 2025 A-ACC-GBP 1.60 - 0.00 - Hermes Europe Ex-UK Equity Fund Class R Acc 3.83 3.83 0.02 - High Yield Fund (No Trail) Inc 168.24 - 0.09 5.88 Far East Growth A Inc 231.91 231.91 -0.35 1.41
Artemis US Equity I Acc 161.43 - -0.17 0.42
Global Equity C Acc 8.38 - 0.01 1.21 Sterling Corporate Bond B Inc 0.34 - 0.00 2.78
Target 2030 A-ACC-GBP 1.79 - 0.00 - Hermes European Alpha Equity Fund Class F Acc 1.77 1.77 0.01 - Hong Kong & China (No Trail) Acc F 256.05 - -0.18 0.90 Global 233.34 245.80 0.68 0.00
Artemis US Ex Alpha I Acc 178.97 - -0.26 -
Global Equity Income C Inc 1.58 - 0.00 - EdenTree Investment Management Ltd (UK) Strategic Bond B Acc 1.20 - 0.00 2.19
UK Invest Grade Long Credit GACC 117.70 - -0.70 - Hermes European Alpha Equity Fund Class F Dis 1.69 1.69 0.01 - Income & Growth (No Trail) Acc F 268.06 - 0.24 - Global Bond Inc 156.18 165.20 -0.21 2.61
Artemis US Extended Alpha I Hedged Acc 1.23 - 0.00 0.00 PO Box 3733, Swindon, SN4 4BG, 0800 358 3010
Global High Yield Bond C Inc 1.00 - 0.01 5.83 Strategic Bond B Inc 1.21 - 0.00 2.21
UK Opportunities Fund W-ACC-GBP 233.20 - -0.70 1.26 Hermes European Alpha Equity Fund Class R Acc 3.54 3.54 0.01 - Income & Growth (No Trail) Inc F 201.05 - 0.18 - High Yield Fixed Interest 75.91 80.54 0.05 5.04
Artemis US Select I Acc 162.63 - -0.11 0.31 Authorised Inv Funds
Japan C Acc 1.41 - 0.01 - UK Equity B Acc 3.08 - 0.01 2.01
Amity UK Cls A Inc 242.40 - 0.30 1.34 UK Opportunities Fund W-INC-GBP 132.50 - -0.50 1.31 Hermes Global Emerging Markets Fund Class F Acc 1.79 1.79 0.00 - Income (No Trail) Acc F 196.63 - 0.28 - Multi Cap Income A Inc 163.06 163.06 -0.01 4.09
Artemis US Select I Hedged Acc 1.20 - 0.00 0.22
Managed 0%-35% C Acc 1.04 - -0.01 - UK Equity Absolute Return B Acc 1.18 - 0.00 0.00
Amity UK Cls B Inc 242.20 - 0.30 - UK Select Fund W-ACC-GBP 2.96 - 0.00 - Hermes Global Emerging Markets Fund Class R Acc 3.76 3.76 0.00 - Income (No Trail) Inc F 137.19 - 0.19 - Nano-Cap Growth A Acc 140.1839 154.0800 -0.0966 0.00
Artemis US Select I Inc 144.49 - -0.10 0.31
North American C Acc 12.57 - -0.02 0.72 UK Equity Income B Acc 2.61 - 0.00 4.15
Higher Income Cls A Inc 139.00 - 0.10 4.16 UK Smaller Companies W-ACC-GBP 2.44 - 0.00 - Hermes Global Equity Fund Class F Acc 2.11 2.11 0.00 0.00 Invesco Global Emerging Mkts Bond Acc (No Trail) 99.64 - 0.01 - Special Situations A Acc 1576.97 1668.75 2.73 0.30
Artemis US Smlr Cos I Acc 176.01 - -0.56 0.05
Portfolio III C Acc 1.24 - 0.00 - UK Equity Income B Inc 1.88 - 0.00 4.27
WealthBuilder Fund N-ACC-GBP 1.52 - 0.00 1.08 Invesco Global Emerging Mkts Bond Inc (No Trail) 98.57 - -0.38 - UK Multi-Cap Growth A Inc 318.59 337.13 1.05 0.35
Asset Management
Higher Income Cls B Inc 144.20 - 0.00 4.11 Hermes Global Equity Fund Class R Acc 4.60 4.60 -0.01 0.00
UK Opportunities B Acc 2.04 - 0.01 1.70
Asset Management
Portfolio IV C Acc 1.27 - -0.01 2.38
Asset Management
Institutional OEIC Funds Hermes Global ESG Equity Fund Class F Acc 1.62 1.62 0.00 0.00 Japan (No Trail) Acc F 199.34 - 1.79 1.01 UK Micro Cap Growth A 649.13 686.91 -0.14 0.11
UK Equity Growth Cls A Inc 274.70 - -0.20 1.28
Artisan Partners Global Funds PLC (IRL) Portfolio V C Acc 1.30 - 0.00 - America 5.40 - 0.00 0.56 Hermes Global High Yield Credit Fund Class F Acc 1.44 1.44 0.00 0.00 Japanese Smaller Companies (No Trail) Acc F 287.97 - 0.64 0.00
UK Smaller Companies B Acc 3.52 - 0.01 1.22
US Multi-Cap Income 421.03 421.03 -0.79 0.54
Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland UK Equity Growth Cls B Inc 281.00 - -0.10 -
Portfolio VI C Acc 1.32 - 0.00 - Emerging Markets 4.34 - -0.02 - Hermes Global High Yield Credit Fund Class R Acc 3.12 3.12 0.00 0.00 Latin American (No Trail) Acc F 138.85 - -1.55 1.18 MFM - Third Party Funds
Tel: 44 (0) 207 766 7130 Amity Balanced For Charities A Inc 118.00 - 0.00 4.87
Portfolio VII C Acc 1.30 - 0.00 - Europe (ex-UK) Fund ACC-GBP 5.32 - 0.02 - Hermes Global Small Cap Fund Class F Acc 1.39 1.39 0.00 0.00 Latin American (No Trail) Inc F 123.14 - -1.37 1.19 Kames Capital Investment Portfolios ICVC (UK) Junior Oils 78.62 83.20 -1.73 0.00
FCA Recognised Amity European Fund Cls A Inc 277.80 - 1.30 -
Artisan Partners Global Funds plc Short duration Corporate Bond C Acc 1.01 - 0.00 - Fidelity Pre-Retirement Bond Fund 138.80 - -0.90 2.65 Hermes Global Small Cap Fund Class R Acc 2.27 2.27 0.01 0.00 Managed Growth (No Trail) Acc F 261.05 - -0.18 0.79 Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA Junior Gold C Acc 36.51 36.51 -0.21 0.00
Amity European Fund Cls B Inc 281.10 - 1.30 -
Artisan Global Equity Fund Class I USD Acc $ 16.26 - -0.02 0.00 Strategic Return C Acc 1.17 - 0.00 0.00 Global Focus 3.97 - -0.01 - 0800 358 3009 www.kamescapital.com MFM Artorius Fund 184.58 184.58 1.91 -
Amity Global Equity Inc for Charities A Inc 125.80 - 0.10 - Hermes Multi Asset Inflation Fund Class F GBP Acc 1.03 1.03 0.00 0.00 Managed Growth (No Trail) Inc F 235.17 - -2.56 0.80
Authorised Funds
Artisan Global Opportunities I USD Acc $ 15.28 - 0.02 0.00 Total Return C Acc 1.09 - 0.00 - Index Linked Bond 3.30 - -0.05 0.39 Hermes Multi Strategy Credit Fund Class F Acc Hed 1.14 1.14 0.00 0.00 Managed Income (No Trail) Acc F 238.17 - -0.05 2.40 MFM Bowland 217.34 234.96 -0.67 1.17
Amity International Cls A Inc 266.10 - 0.70 - Property Income B Acc 125.88 125.88 -0.03 4.34
Artisan Global Value Fund Class I USD Acc $ 19.09 - -0.02 0.00 UK Equity & Bond C Inc 2.64 - 0.00 3.83 Index Linked Bond Gross 4.02 - -0.05 0.40 Hermes US All Cap Equity Class F Stg Acc 1.38 1.38 0.00 0.00 Managed Income (No Trail) Inc F 187.01 - -1.88 2.45 MFM Hathaway Inc 131.91 138.13 1.08 1.06
Amity International Cls B Inc 268.90 - 0.70 - Property Income B Inc 108.81 108.81 -0.51 4.44
Artisan US Value Equity Fund Class I USD Acc $ 13.59 - -0.05 0.00 UK Equity C Inc 1.12 - 0.00 - Index-Linked Bond Fund Gross Inc 15.55 - -0.21 0.39 Hermes US All Cap Equity Class R Acc 2.24 2.24 -0.01 0.00 Monthly Income Plus (No Trail) Acc F 189.66 - 0.11 4.32 MFM Techinvest Special Situations Acc 191.91 191.91 0.35 0.00
Amity Sterling Bond Fund A Inc 107.70 - -0.20 -
Artisan Global Opportunities Class I EUR Acc 20.43 - -0.06 0.00 UK Equity Income C Inc 4.70 - 0.00 - Japan 2.77 - 0.02 - Hermes US SMID Equity Fund Class F Acc 2.28 2.28 0.00 - Monthly Income Plus (No Trail) Inc F 111.09 - -0.45 4.42 MFM Techinvest Technology Acc 491.86 491.86 8.88 0.00
Amity Sterling Bond Fund B Inc 117.50 - -0.20 -
UK Government Bond C Inc 1.15 - 0.00 1.64 Long Bond 0.58 - -0.01 - Pacific (No Trail) Acc F 270.37 - 0.46 0.84
Kames Capital VCIC (IRL) MFM UK Primary Opportunities A Inc 416.34 416.34 0.82 1.71
Hermes US SMID Equity Fund Class R Acc 4.03 4.03 -0.01 0.00
1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 Slater Investments Ltd - Investment Adviser
Long Bond Gross 0.99 - -0.01 - Pacific (No Trail) Inc F 251.72 - 0.41 0.96
Ashmore Sicav (LUX) FCA Recognised
2 rue Albert Borschette L-1246 Luxembourg
Edinburgh Partners Limited (IRL) Long Bond Fund Gross Inc 13.05 - -0.12 - MFM Slater Growth 481.17 510.52 0.57 0.35
Capita Asset Services (UK) Tactical Bond (No Trail) Acc F 148.99 - -0.01 2.29 Absolute Return Bond B GBP Acc 1104.26 - -0.10 1.03
FCA Recognised
27-31 Melville Street, Edinburgh EH3 7JF
Pacific (Ex Japan) 4.93 - -0.02 1.20
Hermes Property Unit Trust (UK) MFM Slater Income A Inc 165.26 165.26 0.04 4.24
40 Dukes Place, London EC3A 7NH Tel: +353 1 434 5143 Dealing - Fax +353 1 434 5230 Property & Other UK Unit Trusts Tactical Bond (No Trail) Inc F 122.64 - -0.01 2.32 Eq Market Neutral B Acc 976.22 - 5.26 -
Ashmore SICAV Emerging Market Debt Fund $ 103.00 - -0.11 7.06 Order Desk and Enquiries: 0345 922 0044 Pan European 3.52 - 0.01 1.56 MFM Slater Recovery - - - 0.48
FCA Recognised Property 6.09 6.53 0.02 3.73 UK Focus (No Trail) Acc F 206.76 - -0.45 2.16 Eq Market Neutral Plus B Acc 925.36 - -3.11 -
Ashmore SICAV Emerging Market Frontier Equity Fund $ 177.65 - 0.99 0.96 Authorised Inv Funds Edinburgh Partners Opportunities Fund PLC Select Emerging Markets Equities 1.76 - -0.01 - UK Focus (No Trail) Inc F 165.87 - -0.36 2.21 High Yield Global Bond A GBP Inc 534.54 - 0.14 3.12
Ashmore SICAV Emerging Market Total Return Fund $ 90.15 - 0.05 5.86 CF Heartwood Cautious B Acc X 140.39 - -0.24 0.16 Emerging Opportunities I USD $ $ 1.33 - 0.00 1.36 Select Global Equities 4.01 - 0.00 0.92 UK Enhanced Index (No Trail) Acc F 500.35 - 0.06 - Marwyn Asset Management Limited (CYM)
High Yield Global Bond B GBP Inc 1118.24 - 0.32 3.69
Ashmore SICAV Global Small Cap Equity Fund $ 151.65 - 0.02 0.00 CF Heartwood Cautious Income B Inc X 114.79 - -0.16 3.17 European Opportunities I EUR 2.79 - -0.02 1.65 South East Asia 5.15 - 0.01 1.55 Hermes UK Residential Real Estate (UK) Regulated
UK Enhanced Index (No Trail) Inc F 296.25 - 0.03 - Investment Grade Global Bd A GBP Inc 579.46 - 0.27 1.99
CF Heartwood Growth B Acc X 171.67 - -0.20 0.53 Property & Other UK Unit Trusts
EM Mkts Corp.Debt USD F $ 97.99 - -0.08 7.28 European Opportunities I GBP 2.42 - -0.01 1.64 Sterling Core Plus Bond Gr Accum 2.51 - -0.02 2.37 Marwyn Value Investors 449.78 - 12.85 0.00
VISTA UK Residential Real Estate 1.02 1.06 0.03 - UK Growth (No Trail) Acc F 175.92 - -0.22 2.34 Kames Emerging Market Bond Fund - B Acc USD $ 11.02 - 0.00 0.00
EM Mkts Loc.Ccy Bd USD F $ 86.11 - 0.34 3.95 CF Heartwood Balanced Income B Inc X 119.72 - -0.06 3.75 European Opportunities A EUR 2.73 - -0.02 1.34 Sterling Core Plus Bond Inc 1.57 - -0.02 2.42 UK Growth (No Trail) Inc F 136.70 - -0.18 2.40 Kames Global Equity Income B GBP Acc 1555.40 - 0.55 -
EM Short Duration Fund Acc USD $ 129.81 - -0.10 0.00 CF Heartwood Balanced B Acc X 143.69 - -0.13 0.44 Global Opportunities I USD $ 1.85 - 0.00 2.26 UK 4.34 - 0.00 - UK Smaller Companies Equity (No Trail) Acc F 385.14 - 0.33 - McInroy & Wood Portfolios Limited (UK)
Kames Global Equity Income B GBP Inc 1412.38 - 0.49 3.11
CF Heartwood Defensive Multi Asset Fund B Accumulation 116.03 - -0.17 0.01 Global Opportunities I GBP 1.44 - 0.00 2.16 INDIA VALUE INVESTMENTS LIMITED (INVIL)
UK Aggreg Bond Gr Accum 2.08 - -0.01 - UK Smaller Companies Equity (No Trail) Inc F 351.83 - 0.29 - Easter Alderston, Haddington, EH41 3SF 01620 825867
www.invil.mu Kames Global Diversified Growth Fund - B Acc EUR 10.93 - 0.02 -
CF Seneca Diversified Growth A ACC 262.44 - 0.31 2.05 Pan European Opportunities I EUR 1.90 - -0.01 - Authorised Inv Funds
UK Corporate Bond 1.33 - -0.01 - UK Strategic Income (No Trail) Acc F 819.24 - 0.77 -
Other International Funds Kames Global Equity Market Neutral Fund - B Acc GBP 9.93 - -0.02 -
CF Seneca Diversified Growth B ACC 156.78 - 0.18 2.61 Balanced Fund Personal Class Units 4754.10xd - 1.80 1.55
UK Corporate Bond - Gross 2.59 - -0.01 - UK Strategic Income (No Trail) Inc F 575.60 - 0.54 -
NAV 9.66 - 0.09 0.00 Kames Global Sustainable Equity Fund - B Acc EUR 11.82 - 0.02 -
CF Seneca Diversified Growth N ACC 154.67 - 0.18 2.39 Income Fund Personal Class Units 2717.10 - 1.50 2.68
UK Corporate Bond Fund Gross Inc 12.09 - -0.04 -
Electric & General (1000)F (UK) US Enhanced Index (No Trail) Acc F 114.81 - -0.18 - Kames Absolute Return Bond Global Fund - B Acc GBP 10.24 - 0.00 0.00
CF Seneca Diversified Income A INC 96.10 - -0.37 4.73 Emerging Markets Fund Personal Class Units 2146.60 - -4.60 1.70
Stuart House St.John's Street Peterborough PE1 5DD UK Gilt Fund Inc 1.40 - 0.00 1.77 US Enhanced Index (No Trail) Inc F 113.75 - -0.18 - Strategic Global Bond A GBP Inc 1120.12 - 0.90 0.54
CF Seneca Diversified Income B INC 114.91 - -0.44 4.72 Orders & Enquiries: 0845 850 0255 UK Gilt Gross 2.28 - -0.01 1.74
Intrinsic Value Investors (IVI) LLP (IRL) Smaller Companies Fund Personal Class Units 4873.50 - 18.20 1.29
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 US Equity (No Trail) Acc F 303.80 - -1.93 0.28 Strategic Global Bond B GBP Inc 635.45 - 0.52 0.99
CF Seneca Diversified Income N INC 113.45 - -0.44 4.72 Authorised Inv Funds
UK Long Corp Bond 1.58 - -0.01 - FCA Recognised
Aspect Capital Ltd (UK) Investment Adviser - Morant Wright Management Limited Authorised Corporate Director - Carvetian Capital Management
UK Long Corp Bond - Gross 3.01 - -0.01 - IVI European Fund EUR 22.10 - 0.00 - Meridian Fund Managers Ltd
Other International Funds CF Morant Wright Japan A X 378.45 - 4.06 0.00 Electric&General Net Income A 197.00 - -0.70 1.56
UK Long Corporate Bond - Gross Inc 12.61 - -0.08 - Kleinwort Benson Bank (UK) Other International Funds
Aspect Diversified USD $ 384.34 - 2.81 0.00 IVI European Fund GBP 25.76 - 0.09 0.59
CF Morant Wright Japan A Inc X 370.51 - 3.98 0.45 14 St. George Street, Mayfair, London W1S1FE Global Gold & Resources Fund $ 317.06 - 0.43 -
Retail Share Classes
Aspect Diversified EUR 226.35 - 1.58 0.00 CF Morant Wright Japan B X 405.73 - 4.37 0.96 Dealing and enquiries: 0800 024 2400
Ennismore Smaller Cos Plc (IRL) Emerging Markets - retail 1.71 - -0.01 - Global Energy & Resources Fund $ 38.21 - -0.83 -
Aspect Diversified GBP 118.18 - 0.84 0.00 Authorised Inv Funds
CF Morant Wright Japan B Inc X 375.96 - 4.05 0.97 5 Kensington Church St, London W8 4LD 020 7368 4220 {*}CAR - Net income reinvested Unit Trust Manager/ACD - Host Capital
Aspect Diversified CHF SFr 106.99 - 0.75 0.00 CF Morant Wright Nippon Yield ACC A X 394.41 - 3.20 1.92 FCA Recognised
HC KB Capital Growth A Acc 203.57 - 0.18 1.36
Aspect Diversified Trends USD $ 115.17 - 0.20 0.00 Ennismore European Smlr Cos NAV 122.59 - 0.12 0.00
CF Morant Wright Nippon Yield ACC B X 412.06 - 3.36 1.91
Findlay Park Funds Plc (IRL) Invesco (LUX) HC KB Capital Growth A Inc 186.54 - 0.16 1.38
Aspect Diversified Trends EUR 113.02 - 0.18 0.00 Ennismore European Smlr Cos NAV 140.74 - -0.17 0.00
CF Morant Wright Nippon Yield Fund A Inc X 328.98 - 2.67 1.97 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 HC KB Enterprise Equity Income A Inc 118.68 - 0.45 3.06
Aspect Diversified Trends GBP 119.52 - 0.20 0.00 CF Morant Wright Nippon Yield Fund B Inc X 343.78 - 2.79 1.98 FCA Recognised
FCA Recognised HC KB Enterprise Equity Income A Acc 187.38 - 0.72 4.00
American Fund USD Class $ 96.94 - 0.07 0.00 Invesco Management SA
Ennismore European Smlr Cos Hedge Fd Invesco Fund Managers Ltd (UK) HC KB Endeavour Multi Asset Balanced A Acc 154.16 - 0.06 0.81
Other International Funds American Fund GBP Hedged 52.22 - 0.03 0.00 Invesco Active Multi-Sector Credit Fund A 3.14 - 0.00 0.00
Atlantas Sicav (LUX)
Cedar Rock Capital Limited (IRL) Perptual Park, Henley-On-Thames, Oxon, RG9 1HH HC KB Endeavour Multi Asset Balanced A Inc 145.70 - 0.06 0.81
NAV 523.73 - -0.38 0.00 Invesco Asia Balanced A dist $ 14.27 - -0.09 3.72
Regulated Regulated American Fund GBP Unhedged 75.08 - -0.23 0.00 Dealing: 0800 085 8571
HC KB Enterprise Fixed Income A Acc 130.85 - -0.29 3.44
Emerging Markets Managed Accounts PLC (IRL)
American Dynamic $ 4181.75 - 28.85 0.00 Latin American Fund USD Class $ 15.63 - -0.04 0.81 Investor Services: 0800 085 8677 Invesco Asia Consumer Demand Fund A income $ 15.06 - 0.01 - emma@milltrust.com, +44(0)20 8123 8369, www.milltrust.com
Cedar Rock Capital Fd Plc $ 442.33 - 17.44 1.38 HC KB Enterprise Fixed Income A Inc 112.75 - -0.24 3.44
www.invescoperpetual.co.uk Invesco Asia Infrastructure (A) $ 13.89 - 0.00 - Regulated
American One $ 3859.96 - 34.72 0.00 Latin American Fund GBP Unhedged 12.34 - -0.07 0.43
Cedar Rock Capital Fd Plc 537.89 - 20.43 1.45 Equinox Fund Mgmt (Guernsey) Limited (GSY) Authorised Inv Funds Milltrust ASEAN A $ 105.60 - 0.07 0.00
Bond Global 1461.44 - 12.70 0.00 Regulated Invesco Asia Opportunities Equity A $ 124.75 - -0.10 0.00
Cedar Rock Capital Fd Plc 409.43 - 4.54 1.43 INVESCO PERPETUAL Funds
Invesco Balanced Risk Allocation Fund A 16.49 - -0.02 0.00 Lloyds Investment Fund Managers Limited (1000)F (JER) Milltrust India A $ 163.58 - 1.20 0.00
Eurocroissance 985.53 - 3.32 0.00 Equinox Russian Opportunities Fund Limited $ 180.44 - 8.90 0.00 Asian Acc F 716.46 - 0.88 -
The First Investor QSCC PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555 Milltrust Latin America A $ 91.71 - -0.98 0.00
Far East $ 827.50 - 8.16 - Asian Inc F 636.16 - 0.78 - Invesco Emerging Europe Equity Fund A $ 10.13 - -0.08 -
5th Floor, Barwa Bank Building, Grand Hamad Street Other International Funds
Charles Schwab Worldwide Funds Plc (IRL) Invesco Emerging Local Currencies Debt A Inc $ 7.10 - -0.02 5.70 Milltrust Keywise China Fund $ 134.05 - 0.30 0.00
, P.O. Box 16034, Doha, State of Qatar Asian Equity Income Acc F 81.99 - 0.25 -
Regulated Euronova Asset Management UK LLP (CYM) Lloydstrust Gilt 12.9200 - -0.0400 1.97
Milltrust SEDCO MENA Fund (Class A) * $ 100.91 - -0.49 -
Regulated + 974 4459 6111 Invesco Emerging Mkt Quant.Eq. A $ 11.77 - -0.06 -
Bank of America Cap Mgmt (Ireland) Ltd (IRL) Schwab USD Liquid Assets Fd $ 1.00 - 0.00 0.02 Asian Equity Income Inc F 64.60 - -0.78 - Lloyds Investment Funds Limited
http://www.tfi.com.qa/ Invesco Energy A $ 16.29 - -0.17 0.00
Regulated Smaller Cos Cls One Shares 41.52 - 0.06 0.00 Balanced Risk 6 Acc 56.81 - -0.05 0.00 Euro High Income 1.6230 - 0.0000 2.98
Other International Funds
Global Liquidity USD $ 1.00 - 0.00 0.61 Smaller Cos Cls Two Shares 28.35 - 0.03 0.00 Balanced Risk 8 Acc 59.87 - -0.06 0.00 Invesco Euro Corporate Bond Fund (A) 17.75 - 0.00 - European 10.1100 - 0.0400 0.65 Ministry of Justice Common Investment Funds (UK)
TFI GCC Equity Opportunities Fund (Q)QAR 1275.53 - 9.44 0.00
Chartered Asset Management Pte Ltd Smaller Cos Cls Three Shares 14.28 - 0.02 0.00 Invesco Euro Inflation Linked Bond A 15.73 - -0.05 0.00 Property & Other UK Unit Trusts
Balanced Risk 10 Acc 63.13 - -0.08 0.00 High Income 0.8999xd - -0.0051 4.47
Other International Funds The Equity Idx Tracker Fd Inc 1678.00 1678.00 0.00 -
Smaller Cos Cls Four Shares 18.34 - 0.02 0.00 Childrens Acc F 475.20 - 0.52 1.89 Invesco Euro Reserve A 321.13 - -0.01 0.00 International 5.4690 - -0.0110 0.36
Barclays Investment Funds (CI) Ltd (JER) CAM-GTF Limited $ 307234.10 307234.10 -353.72 0.00
Foord Asset Management Distribution Units
Corporate Bond Acc F 199.65 - -0.11 - Invesco Euro Bond A 7.43 - 0.00 0.00 North American 21.1600 - -0.1200 0.00
39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 CAM GTi Limited $ 686.20 - -1.02 0.00 Website: www.foord.com - Email: info@foord.com
Invesco European Growth Equity A 27.08 - 0.04 0.00
Asset Management
FCA Recognised Corporate Bond Inc F 91.14 - -0.05 - Sterling Bond 1.5770 - -0.0040 3.04
Raffles-Asia Investment Company $ 1.62 1.62 -0.01 1.90 FCA Recognised - Luxembourg UCITS

Asset Management
Mirabaud Asset Management
Asset Management
Bond Funds Invesco Global Absolute Return Fund A Class 11.37 - -0.01 0.00 (LUX)
Foord International Fund | R $ 38.55 - 0.00 - Distribution Acc F 121.29 - 0.13 - UK 8.0450 - 0.0270 0.91
Sterling Bond F 0.48 - -0.01 - Invesco Global Bond A Inc $ 5.63 - 0.00 0.64 www.mirabaud.com, marketing@mirabaud.com
Foord Global Equity Fund (Lux) | R $ 12.23 - -0.02 - Distribution Inc F 65.98 - -0.25 - Lloyds Gilt Fund Limited
Regulated
Regulated Emerging European Acc F 51.54 - -0.46 - Invesco Global Conservative Fund 90 (EUR) A 11.61 - 0.01 0.00 Lloyds Gilt Fund Quarterly Share 1.3520 - -0.0050 1.53
Mir. - Conv. Bds Eur A EUR 141.46 - -0.10 0.00
Baring Asset Management (UK) Foord Global Equity Fund (Sing) | B $ 14.64 - 0.00 0.00 Emerging European Inc F 46.14 - -0.42 - Invesco Global Equity Income Fund A $ 65.67 - 0.03 - Monthly Share 1.2980xd - -0.0060 1.53
Mir. - Conv. Bds Glb A USD $ 122.13 - -0.13 0.00
Authorised Funds Foord International Trust (Gsy) $ 38.27 - 0.05 0.00 Invesco Global Inc Real Estate Sec A dist $ 9.47 - -0.05 - Lloyds Money Fund Limited
European Equity Acc F 1187.37 - 0.86 - Mir. - Eq Asia ex Jap A $ 210.50 - 1.04 0.00
UK Authorised Unit Trust Eurobank Fund Management Company (Luxembourg) S.A. Invesco Global Inv Grd Corp Bond A Dist $ 12.29 - 0.01 2.83 Sterling Class 52.5790 - 0.0000 -0.19
European Equity Inc F 974.69 - 0.70 - Mir.- EqEurope ExUK Sm&Mid 148.69 - -0.04 0.00
Baring Eastern Trust GBP Acc 932.70 - 0.40 0.00 Regulated Lloyds Multi Strategy Fund Limited
European Equity Income Acc F 100.11 - 0.11 - Invesco Global Leisure A $ 48.20 - 0.03 -
Baring Eastern Trust GBP Inc 915.20 - 0.40 0.00 (LF) Absolute Return 1.35 - 0.00 0.00 Conservative Strategy 1.2430xd - -0.0110 0.86 Mir. - Eq Glb Emrg Mkt A USD $ 110.39 - 0.66 0.00
European Equity Income Inc F 72.28 - 0.06 - Invesco Global Smaller Comp Eq Fd A $ 70.05 - 0.20 0.00
Baring Europe Select Trust GBP Inc 3907.00 - 20.00 0.43 (LF) Eq Emerging Europe 0.85 - -0.01 0.00 Growth Strategy 1.7760xd - -0.0140 0.67 Mir. - Eq Global Focus A USD $ 105.21 - 0.00 0.00
Friday 2 June 2017 FINANCIAL TIMES 23

MANAGED FUNDS SERVICE

Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield Fund Bid Offer +/- Yield

Mir. - EqPanEuropeSm&Mid 134.87 - -0.27 0.00 Pictet-Emerging Markets-I USD F $ 604.79 - -1.42 0.00 CF Ruffer Pacific Fund C Inc 1.01 - 0.02 - Stenham Universal II USD $ 159.80 - 1.02 0.00 Trojan Fund O Inc 253.20 - 0.01 0.36
Mir. - Eq Spain A
Mir. - Eq Swiss Sm/Mid A
30.97
SFr 437.84
-
-
-0.10 0.00
-2.30 0.00
Pictet-Emerging Markets Index-I USD F $ 267.69
Pictet-Emerging Corporate Bonds I USD $ 121.54
-
-
-3.05 0.00
0.08 0.00
Purisima Investment Fds (UK) (1200)F (UK)
Equity & General C Acc
Equity & General C Inc
428.88
395.58
-
-
-0.10 0.00
-0.10 0.00
Trojan Global Equity O Acc
Trojan Global Equity O Inc
297.74
250.82
-
-
0.18 0.76
0.15 0.77
Money Market
40 Dukes Place, London EC3A 7NH
Mir. - Glb High Yield Bds A $ 121.56 - -0.01 - Pictet-Emerging Markets High Dividend I USD $ 113.15 - -0.20 0.00 Order Desk and Enquiries: 0345 922 0044
Authorised Inv Funds
Equity & General O Inc 392.24 - -0.11 0.00 Trojan Global Income O Acc 107.14 - 0.38 - Trusts and
Mir. - Glb Eq High Income A USD $ 105.76 - 0.30 0.00 Pictet-Emerging Markets Sust Eq I USD $ 102.79 - -0.59 0.00 Equity & General O Acc 422.75 - -0.13 0.00 Trojan Global Income O Inc 105.73 - 0.38 -
Mir. - Glb Strat. Bd A USD $ 112.76 - 0.04 0.00 Pictet-EUR Bonds-I F 580.37 - 0.06 0.00
Authorised Corporate Director - Capita Financial Managers
Global Total Fd PCG A 230.76 - -0.27 0.59
European C Acc 564.12 - 4.90 0.06 Trojan Income O Acc 335.32 - 0.72 3.46 Bank Accounts Gross
Mir. - US Shrt Term Credit Fd $ 103.98 - 0.03 0.00 Pictet-EUR Corporate Bonds Ex Fin i EUR 150.01 - -0.01 0.00 European O Acc 556.03 - 4.80 0.00 Trojan Income O Inc 199.80 - 0.43 3.57
Oasis Crescent Management Company Ltd Global Total Fd PCG B 228.88 - -0.27 0.39 Gross Net AER Int Cr
Pictet-EUR Corporate Bonds-I F 209.54 - 0.04 0.00 Japanese Fund C Acc 220.08 - 0.00 0.24
Other International Funds Global Total Fd PCG INT 226.08 - -0.27 0.19 E.I. Sturdza Strategic Management Limited (GSY)
Pictet-EUR Government Bonds I EUR 161.85 - 0.02 0.00 Japanese Fund O Acc X 216.64 - -0.02 0.03
Oasis Crescent Equity Fund R 9.89 - -0.12 0.00 Regulated UBS Asset Management (UK) CCLA Investment Management Ltd
Pictet-EUR High Yield-I F 267.34 - 0.12 0.00 Pacific C Acc 355.00 - 6.49 0.97 21 Lombard Street, London, EC3V 9AH Senator House 85 Queen Victoria Street, London EC4V 4ET
Nippon Growth Fund Limited 97026.00 - 1524.00 -
Pictet-EUR Short Mid-Term Bonds-I F 137.47 - 0.03 0.00 Purisima Investment Fds (CI) Ltd (JER) Pacific O Acc 349.60 - 6.37 1.10 Client Services 0800 358 3012, Client Dealing 0800 358 3012 CBF Church of England Deposit Fund 0.25 - 0.25 Qtr
Regulated Strat Evarich Japan Fd Ltd JPY 79862.00 - -710.00 0.00
Oasis Global Mgmt Co (Ireland) Ltd (IRL) Pictet-EUR Short Term HY I EUR 126.25 - 0.35 0.00 Total Return C Acc 444.23 - -1.18 1.55 www.ubs.com/retailfunds
Regulated PCG B X 197.27 - 1.86 0.00 Strat Evarich Japan Fd Ltd USD $ 782.57 - -6.96 0.00 Authorised Inv Funds
Pictet-EUR Sov.Sht.Mon.Mkt EUR I 102.12 - -0.01 0.00 Total Return C Inc 301.61 - -0.79 1.57
OEIC
CCLA Fund Managers Ltd
Oasis Global Investment (Ireland) Plc PCG C X 194.03 - 1.82 0.00
Pictet-Euroland Index IS EUR 153.92 - 0.24 0.00 Total Return O Inc 297.12 - -0.80 1.58 Senator House 85 Queen Victoria Street, London EC4V 4ET
Oasis Crescent Global Short Term Income Fund $ 0.99 - 0.00 1.46 UBS Global Emerging Markets Equity C Acc 0.71 - 0.00 -
Morgan Stanley Investment Funds (LUX) E.I. Sturdza Funds PLC (IRL) COIF Charities Deposit Fund 0.20 - 0.20 Qtr
Oasis Global Equity $ 28.77 - 0.04 0.27 Pictet-Europe Index-I EUR F 190.59 - -0.17 0.00 Total Return O Acc 437.86 - -1.18 1.56 UBS Global Optimal C Acc 0.94 - 0.00 1.00
6b Route de Trves L-2633 Senningerberg Luxembourg (352) 34 64 61 Regulated
Oasis Crescent Global Investment Fund (Ireland) plc Pictet-European Equity Selection-I EUR F 736.85 - -1.44 0.00 Putnam Investments (Ireland) Ltd (IRL)
UBS UK Opportunities C Acc 0.86 - 0.00 2.43
www.morganstanleyinvestmentfunds.com Nippon Growth (UCITS) Fd - B 82942.00 - -457.00 0.00
Regulated
FCA Recognised Oasis Crescent Global Equity Fund $ 29.72 - 0.04 0.14 Pictet-European Sust Eq-I EUR F 270.18 - 0.62 0.00 UBS US Equity C Acc 1.15 - 0.00 0.42
Putnam New Flag Euro High Yield Plc - E 1052.87 - 0.73 3.34 Nippon Growth (UCITS) Fd - D Inst 54133.00 - -298.00 0.00
US Advantage A F $ 69.77 - -0.22 0.00 Oasis Crescent Variable Balanced Fund 10.66 - -0.02 0.55 Pictet-Global Bds Fundamental I USD $ 122.60 - 0.36 0.00
Strategic China Panda Fd - USD $ 2717.67 - -2.05 0.00 UBS S&P 500 Index C Acc 0.76 - 0.00 1.44 Data Provided by
Asian Equity A F $ 49.03 - -0.11 0.00 OasisCresGl Income Class A $ 10.79 - 0.01 2.54 Pictet-Global Bonds-I EUR 171.24 - -0.49 0.00 UBS Targeted Return C Acc 13.56 - -0.01 1.19
Strategic China Panda Fd - USD Inst $ 1049.24 - -0.84 0.00
Asian Property A F $ 19.66 - 0.12 0.00 OasisCresGl LowBal D ($) Dist $ 12.02 - 0.01 0.00 Pictet-Global Defensive Equities I USD $ 162.36 - 1.07 0.00 UBS Sterling Corporate Bond Indexed C Acc 0.60 - 0.00 -
Strategic Euro Bond Fd - Acc 1134.26 - 0.08 0.00
Diversified Alpha Plus A F 28.01 28.01 0.07 0.00 OasisCresGl Med Eq Bal A ($) Dist $ 12.48 - 0.01 0.45 Pictet-Global Emerging Currencies-I USD F $ 105.37 - 0.16 0.00 UBS Multi Asset Income C Inc Net 0.49 - 0.00 -
Strategic Euro Bond Fd - Dist 1011.43 - 0.04 1.28
Emerg Europ, Mid-East & Africa Eq A F 77.55 - 0.14 0.00 Oasis Crescent Gbl Property Eqty $ 9.62 - 0.02 1.66 Pictet-Global Emerging Debt-I USD F $ 401.68 - -0.33 0.00 UBS UK Equity Income C Inc Net 0.72 - 0.00 -
Strategic Euro Bond Fd - EUR Inst 1016.09 - 0.08 0.00
Emerging Markets Debt A F $ 86.98 - -0.10 0.00 Pictet-Global Env.Opport-I EUR 190.64 - -0.20 0.00 S W Mitchell Capital LLP (CYM)

Asset Management
Regulated Strategic Europe Value Fd - EUR 218.13 - -0.12 0.00 UBS Corporate Bond UK Plus C Inc Net 0.53 - 0.00 -

Asset Management
Emerging Markets Domestic Debt AX F 12.91 12.91 -0.01 4.84 Pictet-Global Megatrend Selection-I USD F $ 262.31 - 0.68 0.00 UBS Global Allocation (UK) C Acc 0.78 - 0.00 -
S W Mitchell European Fund Class A EUR 296.93 - 29.15 - Strategic Europe Value Fd - EUR Inst 192.04 - -0.10 0.00
Emerging Markets Equity A F $ 40.55 40.55 -0.17 0.00 Pictet-Greater China-I USD F $ 533.45 - 1.73 -
Euro Bond A F 16.24 16.24 0.01 0.00 Pictet-Health-I USD $ 268.64 - 1.05 0.00
Ram Active Investments SA
www.ram-ai.com
Strategic Europe Value Fd - EUR Inst Dist 104.39 - -0.06 0.00 UBS Global Enhanced Equity Income C Inc
UBS US Growth C Acc
www.morningstar.co.uk

0.47
1.14
-
-
0.00 7.61
-0.01 -
Strategic Europe Value Fd - Euro R Class 102.42 - -0.05 0.00
Euro Corporate Bond AX F 27.22 27.22 -0.10 - Pictet-High Dividend Sel I EUR F 173.39 - -0.33 0.00 Other International Funds S W Mitchell Capital LLP (IRL) Data as shown is for information purposes only. No
Strategic European Smaller Companies Fd - EUR 1334.64 - 3.10 0.00 UBS Emerging Markets Equity Income C Inc 0.50 - 0.00 -
RAM Systematic Emerg Markets Core Eq $ 95.14 - -0.09 - Regulated offer is made by Morningstar or this publication.
Euro Strategic Bond A F 45.92 45.92 0.02 0.00 Pictet-India Index I USD $ 114.86 - 0.13 0.00 UBS FTSE RAFI Dev 1000 Index J Acc 137.06 - -0.35 -
SWMC European Fund B EUR 16696.55 - -116.49 0.00 Strategic Global Bond Fd - RMB $ 1061.55 - 8.18 0.00
European Currencies High Yield Bd A F 24.27 24.27 0.02 - Pictet-Indian Equities-I USD F $ 570.99 - 2.31 - RAM Systematic Emerg Markets Eq $ 170.42 - 0.09 -
SWMC UK Fund B 13937.36 - -5.18 0.00 Strategic Global Bond Fd - USD $ 1056.54 - 0.67 0.00 UBS MSCI World Min Vol Index J Acc 148.40 - 0.45 2.06
European Equity Alpha A F 46.63 - 0.07 0.00 Odey Asset Management LLP (UK) Pictet-Japan Index-I JPY F 16838.57 - 179.30 - RAM Systematic European Eq 439.44 - -0.18 -
40 Dukes Place, London, EC3A 7NH SWMC Small Cap European Fund B EUR 14543.81 - 23.24 0.00 Strategic Global Quality Fd - USD $ 120.97 - 0.50 0.00
European Property A F 34.98 34.98 0.03 0.00 Pictet-Japanese Equities Opp-I JPY F 10752.70 - 122.38 - RAM Systematic Global Shareholder Yield Eq $ 116.20 - 0.19 0.00
Order Desk and Enquiries: 0345 300 2106 SWMC Emerging European Fund B EUR 11873.36 - -118.29 0.00 Strategic Global Quality Fd - USD Inst $ 130.60 - 0.53 0.00
Eurozone Equity Alpha A F 13.22 13.22 0.01 - RAM Systematic Long/Short Emerg Markets Eq $ 116.52 - 0.40 - Unicapital Investments (LUX)
Authorised Corporate Director - Capita Financial Managers Pictet-Japanese Equity Selection-I JPY F 15365.99 - 162.62 -
Strategic Quality Emerging Bond Fd - EUR Inst 1034.91 - -0.06 0.00 Regulated
Global Bond A F $ 41.07 41.07 0.16 0.00 Authorised Inv Funds Pictet-LATAM Lc Ccy Dbt-I USD F $ 134.59 - 0.35 0.00 RAM Systematic Long/Short European Eq 148.54 - 0.20 -

Global Brands A F $ 120.24 - -0.01 0.00 CF Odey Continental European GBP R Acc 929.30 - 7.80 0.63 Pictet-Multi Asset Global Opportunities-I EUR 120.92 - -0.10 0.00 RAM Systematic North American Eq $ 274.13 - 0.08 -
Strategic Quality Emerging Bond Fd - USD $ 1051.39
Strategic US Momentum and Value Fd - USD Class $ 798.11
-
-
0.00 0.00
1.23 0.00
Investments IV - European Private Eq. 164.09
Investments IV - Global Private Eq. 238.25
-
-
-28.22 18.28
0.00 8.18
Guide to Data
Global Convertible Bond A F $ 44.63 - -0.03 0.00 CF Odey Opus GBP R Inc 4078.69 - 15.88 0.00 Pictet-Pacific Ex Japan Index-I USD F $ 394.29 - 1.53 0.00 RAM Tactical Convertibles Europe 153.02 - -0.14 -
Strategic US Momentum and Value Fd - USD Inst $ 534.22 - 0.81 0.00
Global Property A F $ 28.98 - 0.06 - CF Odey Absolute Return GBP R 270.23 - 1.48 0.00 Pictet-Premium Brands-I EUR F 161.89 - -0.47 0.00 RAM Tactical Global Bond Total Return 144.56 - -0.02 -
The fund prices quoted on these pages are supplied by
Indian Equity A F $ 44.31 - 0.35 - CF Odey Portfolio Fund GBP R Inc 149.59 - 0.31 0.11 Pictet-Russia Index I USD $ 62.43 - -1.48 0.00 RAM Tactical II Asia Bond Total Return $ 137.77 - -0.02 - Unicorn Asset Management Ltd (UK) the operator of the relevant fund. Details of funds
PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287 published on these pages, including prices, are for the
Latin American Equity A F $ 49.99 - -0.30 0.00 Pictet-Russian Equities-I USD F $ 64.88 - -1.46 0.00 Authorised Inv Funds purpose of information only and should only be used
Short Maturity Euro Bond A F 20.40 20.40 0.00 0.00 Pictet-Security-I USD F $ 230.29 - 0.83 0.00 as a guide. The Financial Times Limited makes no
Odey Asset Management LLP (CYM) Rathbone Unit Trust Mgmt (1200)F (UK) RobecoSAM (LUX) UK Growth A Inc 569.96 - 1.67 -
representation as to their accuracy or completeness
US Dollar Liquidity A F $ 13.07 - 0.00 0.00 Regulated Pictet-Select-Callisto I EUR 104.66 - 0.17 0.00 PO Box 9948, Chelmsford, CM99 2AG Tel. +41 44 653 10 10 http://www.robecosam.com/ Mastertrust A Inc X F 479.99 - 0.94 0.25 and they should not be relied upon when making an
US Growth A F $ 85.61 - -0.52 - OEI Mac Inc GBP A 171.51 - 4.83 0.00 Order Desk: 0845 300 2101, Enquiries: 0207 399 0399 Regulated investment decision.
Pictet-Small Cap Europe-I EUR F 1327.67 - -2.98 0.00 UK Growth B Inc 573.41 - 1.68 1.17
Authorised Inv Funds RobecoSAM Sm.Energy/A 15.63 - -0.01 1.41
US Growth AH F 58.15 58.15 -0.36 0.00 OEI Mac Inc GBP B 102.24 - 3.28 0.00 Pictet-ST.MoneyMkt-I 139.85 - 0.00 0.00 Mastertrust B Inc X F 431.64 - 0.86 -
Blue Chip Income Inc 176.29 182.07 0.32 - The sale of interests in the funds listed on these pages
OEI MAC Inc USD $ 905.06 - 25.82 0.00 RobecoSAM Sm.Energy/N 13.96 - -0.04 0.00
US Growth AX F 66.54 66.54 -0.39 0.00 Pictet-ST.MoneyMkt JPY I USD 101236.74 - -0.32 0.00 Superfund Asset Management GmbH Outstanding British Cos A Acc X F 294.69 - 0.61 0.23 may, in certain jurisdictions, be restricted by law and
Blue Chip Income Acc 276.85 285.58 0.51 - RobecoSAM Sm.Materials/A 186.55 - 0.04 1.19 the funds will not necessarily be available to persons
US Property A F $ 69.11 - -0.32 0.00 Odey European Inc EUR 393.09 - 10.72 0.00 Pictet-ST.MoneyMkt-ICHF SFr 122.77 - 0.00 0.00 www.superfund.com, +43 (1) 247 00 Outstanding British Cos B Acc X F 311.14 - 0.65 -
Ethical Bond Inc 95.82 97.74 -0.16 - in all jurisdictions in which the publication circulates.
Odey European Inc GBP A 156.03 - 4.32 0.00 RobecoSAM Sm.Materials/N 189.14 - -0.38 0.00 Regulated
Pictet-ST.MoneyMkt-IUSD $ 137.26 - 0.00 0.00 UK Smaller Cos A Inc X F 554.72 - 1.39 - Persons in any doubt should take appropriate
Ethical Bond Acc 193.83 197.22 -0.32 - RobecoSAM Sm.Materials/Na 128.69 - -0.26 1.20 Superfund Green EUR SICAV 827.92 - -0.78 0.00
Odey European Inc GBP B 88.51 - 2.45 0.00 professional advice. Data collated by Morningstar. For
Pictet-Timber-I USD F $ 172.15 - -0.32 0.00 UK Smaller Cos B Inc X F 543.82 - 1.37 1.58
Morgens Waterfall Vintiadis.co Inc Global Opportunities Acc 190.11 195.88 0.68 - RobecoSAM Gl.Small Cap Eq/A 108.12 - -0.14 1.05 Superfund Red EUR SICAV 809.74 - -0.12 0.00 other queries contact reader.enquiries@ft.com +44
Other International Funds Odey European Inc USD $ 185.07 - 5.19 0.00 Pictet Total Ret-Agora I EUR 118.11 - -0.02 0.00 UK Income A Acc X F 316.12 - 1.48 - (0)207 873 4211.
Income Inc 980.94 1014.08 0.88 - RobecoSAM Gl.Small Cap Eq/N 189.28 - -0.66 0.00 Superfund Blue EUR 833.68 - -1.25 0.00
Phaeton Intl (BVI) Ltd (Est) $ 372.76 - 0.00 0.00 Giano Capital EUR Inc 3874.78 - 20.04 0.00 Pictet Total Ret-Corto Europe I EUR 142.40 - 0.45 0.00 UK Income A Inc X F 267.32 - 1.24 -
Income Acc 1604.38 1656.18 1.44 - RobecoSAM Sustainable Gl.Eq/B 205.45 - -1.23 0.00 The fund prices published in this edition along with
Pictet Total Ret-Divers Alpha I EUR 108.85 - 0.02 0.00 UK Income B Acc X F 339.51 - 1.59 3.38 additional information are also available on the
Multi Asset Enhanced Growth Acc 155.21 - 0.29 - RobecoSAM Sustainable Gl.Eq/N 179.13 - -1.07 0.00
Pictet Total Ret-Kosmos I EUR 110.41 - 0.04 0.00 Thesis Unit Trust Management Limited (UK) Financial Times website, www.ft.com/funds. The
Odey Asset Management LLP (IRL) Multi Asset Strategic Growth inc 171.83 - 0.18 1.51 UK Income B Inc X F 287.24 - 1.34 -
RobecoSAM S.HealthyLiv/B 187.54 - -0.51 0.00 funds published on these pages are grouped together
FCA Recognised Pictet Total Ret-Mandarin I USD $ 135.99 - -0.61 0.00 Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP
Multi Asset Strategic Growth acc 186.29 - 0.20 1.50 by fund management company.
RobecoSAM S.HealthyLiv/N 176.69 - -0.48 0.00 Authorised Funds
Odey Pan European EUR R 315.40 - -0.53 0.00 Pictet-US Equity Selection-I USD $ 207.66 - -0.61 0.00
Multi Asset Total Return inc 133.21 - 0.01 1.64 RobecoSAM S.HealthyLiv/Na 132.81 - -0.06 1.01 TM New Court Fund A 2011 Inc 14.73 - 0.02 0.00 Value Partners Hong Kong Limited (IRL) Prices are in pence unless otherwise indicated. The
Odey Allegra International EUR O 166.15 - -0.19 0.00 Pictet-US High Yield-I USD F $ 162.60 - 0.01 0.00 change, if shown, is the change on the previously
Multi Asset Total Return acc 150.01 - 0.02 1.49 TM New Court Fund - A 2014 Acc 14.77 - 0.02 0.00 www.valuepartners.net, fis@vp.com.hk
RobecoSAM S.Water/A 235.03 - -0.21 1.40
Odey Allegra Developed Markets USD I $ 138.20 - 0.60 0.00 Pictet-USA Index-I USD F $ 216.96 - -0.08 0.00 Regulated quoted figure (not all funds update prices daily). Those
Recovery Inc 482.00 500.17 0.34 2.28 RobecoSAM S.Water/N 199.37 - -0.62 0.00 TM New Court Equity Growth Fund - Inc 15.32 - 0.02 0.00 designated $ with no prefix refer to US dollars. Yield
Odey European Focus Fund 18.75 - 0.07 0.00 Pictet-USD Government Bonds-I F $ 652.55 - 0.90 0.00 Value Partners Asia Dividend Stocks Fund $ 10.58 - 0.00 0.00
Recovery Acc 600.80 622.68 0.42 2.24 percentage figures (in Tuesday to Saturday papers)
Natixis International Funds (LUX) I SICAV (LUX) Odey Giano European Fund EUR R 101.84 - -0.22 0.00 Pictet-USD Short Mid-Term Bonds-I F $ 131.76 - 0.07 0.00 Value Partners Classic Equity Fund USD Z Unhedged $ 12.88 - 0.01 0.00 allow for buying expenses. Prices of certain older
FCA Recognised Strategic Bond I-Class Acc 140.29 141.07 -0.12 3.61 insurance linked plans might be subject to capital
Odey Odyssey USD I $ 104.62 - 0.37 0.00 Pictet-USD Sov.ST.Mon.Mkt-I $ 103.71 - 0.00 0.00 Value Partners Classic Equity Fund CHF HedgedSFr 13.03 - 0.00 0.00
ASG Managed Futures Fund I/A (USD) $ 96.54 96.54 -0.01 - Strategic Bond I-Class Inc 116.92 117.67 -0.09 3.69 gains tax on sales.
Odey Swan Fund EUR I 49.97 - 0.47 0.00 Pictet-Water-I EUR F 331.51 - -0.95 0.00 Value Partners Classic Equity Fund EUR Hedged 13.25 - 0.00 0.00
Harris Global Equity Fund R/A (USD) $ 294.29 294.29 -0.74 0.00
Odey Absolute Return Focus Fund $ 82.78 - 2.60 0.00 Guide to pricing of Authorised Investment Funds:
Value Partners Classic Equity Fund GBP Hedged 13.70 - 0.00 0.00
Loomis Sayles Global Growth Equity Fund I/A (USD) $ 119.31 119.31 -0.05 - (compiled with the assistance of the IMA. The
Rubrics Global UCITS Funds Plc (IRL) Value Partners Classic Equity Fund GBP Unhedged 16.53 - 0.00 0.00 Investment Management Association, 65 Kingsway,
Loomis Sayles U.S. Growth Equity Fund I/A (USD) $ 118.13 118.13 0.01 - Platinum Capital Management Ltd www.rubricsam.com
Value Partners Classic Equity USD Hedged $ 16.03 - 0.01 0.00 London WC2B 6TD.
Odey Wealth Management (CI) Ltd (IRL) Other International Funds Tel: +44 (0)20 7831 0898.)
Regulated
www.odey.com/prices Platinum All Star Fund - A $ 125.32 - - - Toscafund Asset Management LLP (UK) Value Partners Global Emerging Market Bond Fund $ 10.24 - -0.02 0.00
Rubrics Emerging Markets Fixed Income UCITS Fund $ 132.23 - 0.01 0.00
Natixis International Funds (UK) FCA Recognised Platinum Global Dividend Fund - A $ 47.94 - - - www.toscafund.com Value Partners Greater China Equity Fund $ 10.09 - -0.05 0.00 OEIC: Open-Ended Investment Company. Similar to a
Authorised Funds Rubrics Global Credit UCITS Fund $ 15.43 - 0.01 0.00 unit trust but using a company rather than a trust
Odey Opportunity EUR I 234.10 - -0.43 0.00 Authorised Funds Value Partners Health Care Fund RMB Class Z UnhedgedCNH 11.49 - 0.01 0.00
Platinum Maverick Enhanced Fund Limited $ 93.69 - - 0.00 structure.
H2O MultiReturns Fund N/A (GBP) 1.44 - 0.00 0.62 Rubrics Global Fixed Income UCITS Fund $ 161.73 - 0.13 0.00
Aptus Global Financials B Acc 3.99 - -0.01 -
Robeco Asset Management (LUX)
Q Rubrics India Fixed Income UCITS Fund $ 11.43 - 0.03 0.00
Value Partners Health Care Fund HKD Class A UnhedgedHK$ 10.63 - 0.07 0.00
Loomis Sayles U.S. Equity Leaders N/A (GBP) 2.17 - 0.00 0.00 Aptus Global Financials B Inc 3.28 - -0.01 - Different share classes are issued to reflect a different
Weena 850, 3014 DA Rotterdam, The Netherlands Value Partners Health Care Fund USD Class A Unhedged $ 10.62 - 0.08 0.00
Omnia Fund Ltd Rubrics India Fixed Income UCITS Fund $ 97.58 - 0.23 0.00 currency, charging structure or type of holder.
www.robeco.com/contact
Other International Funds
FCA Recognised Rubrics International Bond UCITS Fund $ 17.49 - -0.01 - Selling price: Also called bid price. The price at which
NatWest (2230)F (UK) Estimated NAV $ 933.67 - 10.72 0.00 Toscafund Asset Management LLP
PO Box 23873, Edinburgh EH7 5WJ**
Asia-Pacific Equities (EUR) 155.31 - 0.10 0.00 Waverton Investment Funds Plc (1600)F (IRL) units in a unit trust are sold by investors.
www.toscafund.com
Enquiries: 0800 085 5588 BP US Premium Equities (EUR) 211.45 - -0.59 0.00 waverton.investments@citi.com
Schroder Property Managers (Jersey) Ltd Other International Funds Buying price: Also called offer price. The price at
Authorised Inv Funds FCA Recognised
BP US Premium Equities (USD) $ 240.96 - -0.53 0.00 Other International Funds Tosca A USD $ 313.10 - 8.82 - which units in a unit trust are bought by investors.
Series 1(Minimum initial investment 16375,000) Waverton Asia Pacific A USD $ 21.82 - 0.12 - Includes managers initial charge.
Chinese Equities (EUR) 86.85 - -0.60 0.00 Indirect Real Estate SIRE 133.88 140.74 0.60 - Tosca Mid Cap GBP 298.41 - -0.99 -
Global Spec Inv Grade Bd Fund GBP 9.75 - 0.00 2.66 Polar Capital Funds Plc (IRL) Waverton Global Equity Fund A GBP 18.90 - 0.02 0.18
Regulated Em Stars Equities (EUR) 210.96 - -2.02 0.00 Tosca Opportunity B USD $ 422.76 - -0.08 - Single price: Based on a mid-market valuation of the
Series 2 (Investment Management customers only) Waverton Global Strategic Bond Fund A USD $ 8.55 - 0.02 - underlying investments. The buying and selling price
Asian Financials I USD $ 351.15 351.15 0.36 - Emerging Markets Equities (EUR) 179.89 - -1.50 0.00 Pegasus Fund Ltd A-1 GBP 70.19 - -1.53 0.00
UK Specialist Equity Inc 21.36 - -0.12 0.49 Scottish Friendly Asset Managers Ltd (UK) Waverton UK Fund A GBP 14.72 - 0.05 1.71 for shares of an OEIC and units of a single priced unit
Biotechnology I USD $ 19.06 19.06 0.16 0.00 Flex-o-Rente (EUR) 105.96 - -0.05 0.00 Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000 trust are the same.
Global Spec Inv Grade Bd Fund GBP 9.97 - 0.00 2.66 Waverton Equity Fund A GBP 18.22 - 0.02 0.17
Optima Fund Management European Income Acc EUR 12.77 12.77 0.03 0.00 Glob.Consumer Trends Equities (EUR) 179.98 - -0.31 0.00 Authorised Inv Funds
The initial charge you will pay will depend on the amount you invest Waverton Sterling Bond Fund A GBP 9.64 - -0.01 - Treatment of managers periodic capital charge:
**Address and Telephone number for series 1 only Other International Funds European Ex UK Inc EUR Acc 11.53 11.53 0.03 0.00 High Yield Bonds (EUR) 143.67 - 0.13 0.00 Managed Growth 280.10 - 0.70 - The letter C denotes that the trust deducts all or part
Cuttyhunk Fund II Limited $ 1682.27 - 13.44 0.00 Financial Opps I USD $ 13.16 - -0.03 1.49 Lux -O- Rente (EUR) 140.70 - -0.01 0.00 UK Growth 305.70 - 1.30 - of the managers/operators periodic charge from
capital, contact the manager/operator for full details
JENOP Global Healthcare Fund Ltd $ 13.35 - 0.11 0.00 GEM Growth I USD $ 10.40 - -0.03 0.00 New World Financials (EUR) 59.71 - -0.33 0.00 WA Fixed Income Fund Plc (IRL)
of the effect of this course of action.
OPTIKA Fund Limited - Cl A $ 109.25 - 0.89 0.00 Regulated
GEM Income I USD $ 11.55 - -0.01 0.00 SIA (SIA Funds AG) (CH) European Multi-Sector 119.47 - 0.05 0.00 Exit Charges: The letter E denotes that an exit charge
Optima Fd NAV $ 92.76 - -0.16 0.00 Global Alpha I USD $ 14.73 14.73 0.02 0.00 Other International Fds
Royal Bank of Scotland (2230)F (UK) may be made when you sell units, contact the
Optima Discretionary Macro Fund Limited $ 83.41 - -0.39 0.00 Global Convertible I USD $ 12.06 12.06 0.01 0.00 PO Box 23873, Edinburgh EH7 5WJ 0800 917 7072 LTIF Stability Growth SFr 214.70 - -1.20 - TreeTop Asset Management S.A. (LUX) manager/operator for full details.
Regulated
The Dorset Energy Fd Ltd NAV $ 29.69 - 0.23 0.00 Global Insurance I GBP 5.77 - 0.01 0.00 Authorised Inv Funds LTIF Stability Inc Plus SFr 180.90 - -1.10 - Yapi Kredi Asset Management (TUR)
TreeTop Convertible Sicav Time: Some funds give information about the timing of
Platinum Fd Ltd $ 97.91 - 0.58 0.00 Series 5 (Minumum Initial Investment 75,000) www.yapikrediportfoy.com.tr Tel: + 90 (212) 385 48 48
Global Technology I USD $ 33.60 - -0.13 0.00 price quotes. The time shown alongside the fund
International A 315.51 - -0.45 0.00 Other International Funds
New Capital Fund Management Ltd (IRL) Platinum Fd Ltd EUR 18.52 - 0.09 0.00 Global Spec Inv Grade Bd Fund GBP 9.59 - 0.00 2.66 managers/operators name is the valuation point for
Healthcare Blue Chip Fund I USD Acc $ 11.36 11.36 0.06 0.00
Leconfield House, Curzon Street, London, W1J 5JB Series 6 (Investment Management Customers Only) Standard Life Wealth (JER) International B $ 415.67 - -0.21 0.00 Eurobond Fund TRY 0.099788 - -1.307591 - their unit trusts/OEICs, unless another time is
Platinum Japan Fd Ltd $ 62.04 - -0.13 0.00 Healthcare Opps I USD $ 38.54 - 0.16 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 indicated by the symbol alongside the individual unit
www.newcapitalfunds.com US Spec Equity Fund 26.95 - 0.13 0.26 International C 132.32 - -0.13 2.64 Koc Affiliate and Equity Fund TRY 0.960896 - -0.446483 -
Optima Partners Global Fd $ 15.71 - -0.06 0.00 FCA Recognised trust/OEIC name.
FCA Recognised Income Opportunities B2 I GBP Acc 2.15 2.15 0.00 0.00
Global Spec Inv Grade Bd Fund GBP 9.95 - 0.00 2.66 International D 276.61 - -0.37 2.53 DPM Bonds and Bills Fund (FX) $ 1.038987 - -0.368392 -
New Capital Asia Pacific Bond Fund - USD Ord Inc. $ 95.98 - 0.17 2.50 Optima Partners Focus Fund A $ 16.41 - -0.07 0.00 Standard Life Offshore Strategy Fund Limited
Japan Alpha I JPY 224.39 224.39 2.63 - Address and telephone number for Series 5 only TreeTop Global Sicav The symbols are as follows: 0001 to 1100 hours;
New Capital Asia Pacific Equity Income Fund - USD Ord Inc. $ 102.92 - -0.18 3.09 Bridge Fund 1.9116 - -0.0057 1.84 1101 to 1400 hours; 1401 to 1700 hours; # 1701 to
Japan I JPY 2191.68 - 28.60 0.00 Global Opp.A 157.57 - -1.07 0.00
Global Equity Fund 2.3730 - -0.0070 1.01 midnight. Daily dealing prices are set on the basis of
New Capital Dynamic European Equity Fund - EUR Ord Inc. 190.74 - 0.38 1.28 North American I USD $ 21.38 21.38 -0.02 0.00 Global Opp.B $ 160.70 - -0.69 -
Oryx International Growth Fund Ltd Royal London Unit Managers Ltd. (1200) F (UK) Global Fixed Interest Fund 1.0242 - 0.0005 4.05
the valuation point, a short period of time may elapse
New Capital China Equity Fund - USD Ord Acc. $ 146.26 - 0.58 0.00 Other International Funds UK Absolute Equity I GBP 17.44 17.44 0.10 0.00 Global Opp.C 225.46 - -1.80 - before prices become available. Historic pricing: The
5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777 Income Fund 0.5726 - -0.0006 3.30 letter H denotes that the managers/operators will
New Capital Global Value Credit Fund - USD Ord Acc. $ 181.05 - 0.08 0.00 NAV (Fully Diluted) 8.19 - 0.36 0.00 UK Val Opp I GBP Acc 11.30 11.30 -0.01 - Authorised Inv Funds Sequoia Equity A 162.62 - -0.32 0.00 normally deal on the price set at the most recent
New Capital Global Equity Conviction Fund - USD Ord Acc. $ 106.37 - 0.00 0.00 Sterling Fixed Interest Fund 0.9001 - -0.0034 3.52
Royal London Sustainable Diversified A Inc 1.87 - 0.00 - Sequoia Equity B $ 174.55 - 0.10 - valuation. The prices shown are the latest available
UK Equity Fund 2.2063 - 0.0002 2.77 before publication and may not be the current dealing
New Capital Strategic Portfolio UCITS Fund - USD Inst Acc. $ 109.21 - -0.02 0.00 Royal London Sustainable World A Inc 222.60 - 0.10 - Sequoia Equity C 214.54 - -0.69 -
Polar Capital LLP (CYM) levels because of an intervening portfolio revaluation
New Capital Wealthy Nations Bond Fund - USD Inst Inc. $ 120.80 - -0.03 3.19 Royal London Corporate Bond Mth Income 94.74 96.18 -0.54 - Yuki International Limited (IRL) or a switch to a forward pricing basis. The
Regulated
New Capital Swiss Select Equity Fund - CHF Ord Acc.SFr 149.66 - -1.03 0.00 Tel +44-20-7269-0207 www.yukifunds.com managers/operators must deal at a forward price on
European Conviction A EUR 154.97 - 3.40 0.00 Royal London European Growth Trust 143.90 146.10 0.60 - request, and may move to forward pricing at any time.
New Capital US Growth Fund - USD Ord Acc. $ 234.66 - -0.28 0.00 Regulated
European Forager A EUR 184.68 - 6.59 0.00 Royal London Sustainable Leaders A Inc 551.60 - -3.90 1.19 Forward pricing: The letter F denotes that that
Yuki Mizuho Umbrella Fund managers/operators deal at the price to be set at the
New Capital All Weather UCITS Fund - EUR Inst Acc. 101.22 - -0.05 - Royal London UK Growth Trust 567.90 576.50 1.40 - Yuki Mizuho Japan Dynamic Growth 8208.00 - 128.00 0.00 next valuation.
New Capital Dynamic UK Equity Fund - GBP Inst Acc. 110.15 - -0.11 - Royal London UK Income With Growth Trust 240.00 243.70 1.90 4.23
Private Fund Mgrs (Guernsey) Ltd (GSY) Yuki Japan Low Price 34787.00 - 207.00 0.00
New Capital US Small Cap Growth Fund - USD Inst Acc $ 105.40 - -0.12 - Pictet Asset Management (Europe) SA (LUX) Investors can be given no definite price in advance of
Regulated Royal London US Growth Trust 212.40 215.60 -0.50 0.00 Yuki Japan Value Select 17503.00 - 80.00 0.00
15, Avenue J.F. Kennedy L-1855 Luxembourg the purchase or sale being carried out. The prices
New Capital Global Alpha Fund - USD Ord Inc $ 104.10 - -0.10 - Additional Funds Available appearing in the newspaper are the most recent
Tel: 0041 58 323 3000 Monument Growth 30/05/2017 528.19 533.97 2.35 - Stenham Asset Management Inc Yuki Asia Umbrella Fund
FCA Recognised Please see www.royallondon.com for details
www.stenhamassetmanagement.com Troy Asset Mgt (1200) (UK)
Yuki Japan Rebounding Growth Fund JPY Class 30192.00 - 211.00 0.00
provided by the managers/operators. Scheme
40 Dukes Place, London EC3A 7NH particulars, prospectus, key features and reports: The
Pictet-Absl Rtn Fix Inc-HI EUR 108.45 - -0.01 0.00 Other International Funds Yuki Japan Rebounding Growth Fund USD Hedged Class $ 1170.41 - 8.33 0.00 most recent particulars and documents may be
Prusik Investment Management LLP (IRL) Order Desk and Enquiries: 0345 608 0950
Pictet-Agriculture-I EUR F 209.18 - 0.05 0.00 Ruffer LLP (1000)F (UK) Stenham Credit Opportunities A Class USD $ 108.81 - 0.46 0.00 obtained free of charge from fund
Enquiries - 0207 493 1331 Authorised Inv Funds
40 Dukes Place, London EC3A 7NH Stenham Equity UCITS USD $ 157.70 - -2.82 0.00 managers/operators. * Indicates funds which do not
Pictet-Asian Equities Ex Japan-I USD F $ 266.20 - 0.12 0.00 Regulated ACD Capita Financial Mgrs price on Fridays.
Order Desk and Enquiries: 0345 601 9610 Stenham Growth USD $ 209.71 - 0.54 - Trojan Investment Funds
Zadig Gestion (Memnon Fund) (LUX)
Pictet-Asian Local Currency Debt-I USD F $ 162.40 - 0.06 0.00 Prusik Asian Equity Income B Dist $ 200.56 - 0.08 -
Authorised Inv Funds FCA Recognised Charges for this advertising service are based on the
Pictet-Biotech-I USD F $ 719.67 - 3.76 0.00 Prusik Asia A $ 226.28 - 0.23 0.00 Stenham Healthcare USD $ 185.92 - -0.22 0.00 Spectrum Fund O Acc 209.37 - -0.16 0.45
Authorised Corporate Director - Capita Financial Managers Memnon European Fund I GBP 160.83 - 0.46 0.00 number of lines published and the classification of the
Pictet-CHF Bonds I CHF SFr 510.76 - 0.18 0.00 Prusik Asian Smaller Cos A $ 169.46 - 0.72 - CF Ruffer Investment Funds Stenham Managed Fund USD $ 113.80 - 0.15 0.00 Spectrum Fund O Inc 202.48 - -0.15 0.46 fund. Please contact data@ft.com or
Northwest Investment Management (HK) Ltd Pictet-China Index I USD $ 128.13 - -1.08 0.00 Stenham Macro UCITS USD $ 94.92 - -0.03 0.00 Spectrum Income Fund O Acc 114.41 - 0.27 2.77 call +44 (0)20 7873 3132 for further information.
CF Ruffer European Fund C Inc 1.05 - 0.01 -
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373
Pictet-Clean Energy-I USD F $ 93.57 - 0.43 0.00 CF Ruffer Gold Fund C Acc 147.35 - -0.30 0.54 Stenham Multi Strategy USD $ 110.96 - 0.58 - Spectrum Income Fund O Inc 108.73 - 0.26 2.83
Other International Funds
Northwest China Opps $ Class $ 3099.89 - -74.89 0.00 Pictet-Digital-I USD F $ 347.29 - -0.66 0.00 CF Ruffer Gold Fund C Inc 0.89 - 0.00 - Stenham Quadrant USD A $ 413.31 - -1.62 - Trojan Ethical Income O Acc 117.43 - 0.22 2.87

Northwest $ Class $ 2437.10 - -16.23 0.00 Pictet-Em Lcl Ccy Dbt-I USD F $ 176.26 - 0.46 0.00 CF Ruffer Gold Fund O Acc 145.18 - -0.31 0.35 Stenham Trading Inc USD $ 119.09 - -0.47 - Trojan Ethical Income O Inc 113.94 - 0.21 2.95
Pictet-Emerging Europe-I EUR F 366.31 - -2.97 0.00 CF Ruffer Japanese Fund C Inc 1.04 - 0.00 - Stenham Universal USD $ 434.42 - 2.95 - Trojan Fund O Acc 306.75 - 0.00 0.36

Morningstar Fund Ratings

US Fund Foreign Large Blend
Name ISIN Currency NAV Total Ret Total Ret Total Ret 12 Month Ongoing Fund Size Morningstar Morningstar Morningstar Morningstar Morningstar Analyst
1Yr 3Yr 5Yr Yield Charge Rating TM Sustainability Rating TM Analyst Rating TM Analyst Rating Date/Time*

FMI International US3029333040 US Dollar 33.00 17.17 8.03 12.97 2.75 - 8,042,018,430 QQQQQ 21/04/2017 07:53 Gretchen Rupp

MFS International Value A US55273E3018 US Dollar 40.88 16.94 7.81 14.10 1.29 - 27,378,223,757 QQQQQ 09/03/2017 11:08 William Samuel Rocco

Thornburg International Value A US8852156574 US Dollar 26.37 14.35 4.98 8.26 1.46 - 6,057,371,564 QQQ Neutral 15/02/2017 10:58 William Samuel Rocco

Wells Fargo International Equity A US9499151770 US Dollar 12.49 18.74 4.74 10.29 2.63 - 419,982,230 QQQQ Neutral 17/08/2016 09:03 Andrew Daniels, CFA, CMA

Artisan International Value Investor US04314H8815 US Dollar 37.11 17.64 4.17 13.59 0.69 - 13,370,072,176 QQQQQ 11/05/2017 07:58 Greg Carlson

First Eagle Overseas A US32008F1012 US Dollar 24.57 10.34 3.81 8.50 1.03 - 17,569,198,459 QQQQQ 27/09/2016 11:38 Greg Carlson

Hartford International Opportunities Y US4166458855 US Dollar 17.04 16.38 3.44 9.60 1.30 - 2,990,048,823 QQQQQ 21/04/2017 03:28 Gregg Wolper

Oakmark International Investor US4138382027 US Dollar 26.26 30.07 3.30 13.97 1.28 - 33,543,757,052 QQQQQ 12/01/2017 04:13 Greg Carlson

Oakmark International Investor US4138382027 US Dollar 26.26 30.07 3.30 13.97 1.28 - 33,543,757,052 QQQQQ 12/01/2017 04:13 Greg Carlson

DFA International Core Equity I US2332033719 US Dollar 13.21 17.67 2.41 11.08 2.21 - 21,916,853,066 QQQQ 15/03/2017 06:53 Daniel Sotiroff

T. Rowe Price Overseas Stock US77956H7576 US Dollar 10.49 19.01 2.40 10.18 1.72 - 14,312,765,970 QQQQ 14/09/2016 09:18 William Samuel Rocco

MSCI Benchmark 18.24 1.26 8.39 Date/Time of ratings is Universal Co-ordinated Time (UTC). Sorted by Annualised 3yr Total Return of NAV (highest to lowest).
Morningstar Category Benchmark 16.01 1.54 9.03 For important information about Morningstar Analyst Rating please go to: http://global.morningstar.com/managerdisclosures
24 FINANCIAL TIMES Friday 2 June 2017

MARKETS & INVESTING

Currencies
Capital markets

Goldman hit by hunger bond

storm after Venezuela deal
Goldman Sachs stirred
controversy this week
when opposition leaders in
Venezuela accused the US
bank of handing the
countrys autocratic
government a financial
lifeline even as many of its
people go hungry.
Activists have
demonstrated outside the
banks New York
headquarters. Marco
Rubio, the senator and
former Republican
presidential candidate,
tweeted his support.
Was the deal unusual?
Last week the banks
investment arm, Goldman
Sachs Asset Management,
which manages money on
behalf of pension funds,
endowments and wealthy
individuals, reportedly paid
about $865m for $2.8bn of
bonds issued by PDVSA,
the state-owned oil group.
At face value this was a
notable, if not sensational,
trade in the world of
emerging market debt.
Venezuelas deep economic
and financial distress
makes it an aggressive and
risky bet. Funds controlled
30.8
Cents on the dollar
reportedly paid for the
$2.8bn of debt; so even
a 50% haircut would
leave a $535m profit
by GSAM already owned
more than $200m of
Venezuelan debt before
the purchase, according to
fund filings.
So why are people angry?
Albeit indirectly, GSAM
bought the bonds from the
Venezuelan central bank.
The trade therefore
constituted a money
infusion for the authorities,
rather than an exchange
between two investors.
The asset manager said
it had bought the bonds
from a broker and did not
interact with the
Venezuelan government.
According to the Wall
Street Journal, the broker
was Dinosaur Group, a
little-known outfit that is
too small to have bought
the bonds and sold them
itself. That means it would
have been only an
intermediary, argues Russ
Dallen of Caracas Capital.
The Venezuelan central
banks reserves rose
Protesters say the payment finances dictatorship
$442m to $10.8bn last
Thursday, the day the
bond trade is reported to
have gone through.
Dinosaur founder Glenn
Grossman did not respond
to an emailed request for
comment.
The opposition leaders
and activists said the
GSAM payment would
finance an increasingly
brutal dictatorship. Nicols
Maduro, president, has
been keen not to default
on foreign debts, and has
imposed draconian
austerity measures.
Julio Borges, head of the
opposition-controlled
congress, accused
Goldman of trying to make
a a quick buck off the
suffering of the
Venezuelan people.
What was the rationale?
Venezuelan bonds have
been trading at a fraction
of face value for several
years, with investors
convinced that the country
will default sooner or later.
Should that happen,
investors can still make
money if the haircut
following the subsequent
restructuring is smaller
than the price discount.
If Goldman bought the
$2.8bn of PDVSA debt at
the reported $865m, that is
30.8 cents on the dollar.
Even an unusually high
50 per cent haircut would
still leave a $535m profit.
This rough calculation
appears to demonstrate
the investment adage:
There are no bad assets;
only bad prices.
GSAM said: Many
investors make similar
investments daily through
mutual funds, index funds
and ETFs.
Who else holds the debt?
Creditors of Venezuela and
PDVSA include many of
the biggest asset
managers, including
Fidelity, Pimco, BlackRock,
T Rowe Price, Ashmore,
GMO and PGIM.
Because the bonds are
included in various
benchmarks tracked by
institutional investors, it is
hard for asset managers to
ignore them.
Ricardo Hausmann, a
Venezuelan economist at
Harvard, has urged
JPMorgan Chase to eject
Venezuela from its EM
bond indices on moral
grounds. Listing the debt
of such countries, he
argues, gives investors an
incentive to buy hunger
bonds and profit from
peoples impoverishment.
Robin Wigglesworth and
Gideon Long
China central bank props up renminbi
Move pushes currency
towards best two-day gain
versus dollar since January
GABRIEL WILDAU SHANGHAI
Chinas currency headed for its biggest
two-day gain against the dollar since
January yesterday, as the central bank
apparently intervened to support it
amid tepid market demand for the ren-
minbi.
Traders said that large state-owned
banks sold dollars aggressively on
Wednesday and yesterday. Such con-
certed trading is usually viewed as a sign
that these institutions are acting on
behalf of the central bank to prop up
demand for the renminbi.
The Peoples Bank of Chinas curren-
cy-trading arm last week announced a
IEX sticks to principles in battle for presence
Exchange is trying to kindle
change rather than adopting
tactics used by rivals
NICOLE BULLOCK NEW YORK
Brad Katsuyama, the founder and chief
executive of IEX, is sticking to his guns
even if his competitors are yet to feel
much fire from them.
Almost a year on from its bitter battle
to become a fully-fledged stock
exchange in the US, IEXs ambition to
reshape the worlds largest equity mar-
ket has not made it a big participant
its market share has not topped 2.6 per
cent. And now rivals including the New
York Stock Exchange and Nasdaq, are
preparing to hit back in the highly-com-
petitive arena for matching trades.
IEXs philosophy is well-known on
Wall Street after it was catapulted into
the spotlight overnight with the 2014
publication of Flash Boys: A Wall Street
Revolt, by author Michael Lewis. The
book depicted them as crusaders
against a rigged market with a centre-
piece feature a 350 microsecond delay
on orders designed to thwart high speed
traders. The attention paved the way for
IEX to mount a campaign to move from
an obscure off-exchange trading venue
to a registered exchange.
So does Mr Katsuyama feel pressure
to change IEXs philosophy, and fight for
market share with the same weapons its
larger rivals use?
Not at all, Mr Katsuyama tells the
Financial Times.
He adds that: We are in this to change
the markets, not to hit a market share
target. I could probably triple the mar-
ket share with three decisions right
now, pointing to eliminating the speed
bump, paying rebates and selling colo-
cation, or ways for market participants
to get faster access to its trade data.
But those are things we are just
unwilling to do.
The exchange says it is profitable, and
the $75m it raised from investors in 2014
is still in the bank, plus some though
as a private company the group doesnt
disclose its financial performance. Cru-
cially, IEXs backers still support the
mission. We feel great about their
progress, says Alex Finkelstein, a gen-
eral partner at Spark Capital, a venture
capital company, and a member of IEXs
board, pointing to the growth in market
share rather than the absolute amount.
We are eager to see if they continue
to innovate and find ways to continue to
improve market quality, says Matt
Lyons, head of global equity trading at
Capital Group, an asset manager and
investor in IEX.
change to the way it sets the renminbis big depreciation. The renminbi has
6.5% increasingly transparent, with banks
daily fix, which is intended to guide traded in a very narrow range this year. able to predict its level in advance. But
trading in the spot market. The change But if you look at real demand in the Renminbis record that pattern has weakened in recent
decline against the
granted the PBoC greater flexibility to market, its still mostly dollar demand. dollar in 2016 weeks, with fixings consistently coming
push back against what it called irra- Market expectations havent funda- in stronger than expected.
tional expectations and guide the ren- mentally shifted, said a foreign The PBoC fixed the renminbi 0.8 per
minbi stronger, even when market exchange trader at a European bank in
2.3 %
cent stronger yesterday, the biggest one-
Gain this year,
forces are pushing the other way. Shanghai. including 0.9% in
day gain since January and the strongest
After a record 6.5 per cent decline Capital outflows were a big source of the past two days level since November.
against the dollar in 2016, the renminbi downward pressure on the renminbi Some analysts speculate that moves
has gained 2.3 per cent this year, includ- last year. But outflows diminished sub- to strengthen the currency are also an
ing 0.9 per cent over the past two days. stantially in the first quarter after the effort to boost confidence after
At 6.889 per dollar at midday yesterday, imposition of tighter capital controls. the downgrade of Chinas sovereign
the renminbi was at its strongest since Even so, corporate purchases of for- credit rating by Moodys last week. Data
November. eign exchange have continued to exceed also indicate Chinas economy is slowing
Given the currencys stability this renminbi purchases this year, including after a strong start to 2017.
year, some analysts were baffled by the a gap of $12.8bn in April, according to In December 2015, the PBoC
PBoC move to guide the renminbi even the State Administration of Foreign announced it would shift away from tar-
stronger. But traders say that authori- Exchange. Even before last weeks geting renminbi stability against the US
ties are concerned that client demand announcement, the PBoC had begun to dollar and instead focus on maintaining
remains strongly tilted towards dollar set unusually strong fixings. Since early basic stability against a trade-
purchases, a holdover from last years 2016, the fixing mechanism had become weighted basket of global currencies.
Analysis. Equities
Equity trading share
Apr 2017 (%)
NYSE
22.9
Off-exchange
36.8
Bats Global
Markets
19.4
Nasdaq
18.5
Chicago Stock IEX 2.1
Exchange 0.4
IEX market share
Per cent
2.5
2.0
1.5
1.0
0.5
0
2013 14 15 16 17
Sources: Tabb Group; IEX
IEX founder Mr Katsuyama doesnt appear wor- prices for investors. IEXs refusal to pay equities market operator, this week
and chief Brad ried, either he meditates daily, a prac- rebates is likely holding back its growth, unveiled a flat-fee model rather than one
Katsuyama tice he developed during the testy but Mr Katsuyama is unrepentant. paying rebates for one of its exchanges.
feels no pressure exchange application process. It really Rebates are the single biggest factor Yet rivals are preparing to introduce
to change helps with stress, he says at their offices that underlies our entire market struc- their own, similar speed bumps into the
the bourses in lower Manhattan. ture, he says. It drives where orders market. NYSE, for example, this month
philosophy One way for Mr Katsuyama to help are routed, it drives where orders are won approval to put an identical delay
Chris Goodney/Bloomberg
boost IEXs presence would be to break posted, it skews execution metrics, it is on one of its trading venues.
the NYSE-Nasdaq duopoly for company the gravity that moves things. Yes, it is competition, Mr Kat-
listings, as these venues typically enjoy The cost of rebates, IEX argues, also suyama says, but he dismisses the idea
more trading volume at the open and swells the cost of data that other that it is a true copycat since NYSEs
close of trading. Pending regulatory exchanges charge and brokers and delay is confined to NYSE American, the
approval, IEX will focus on luring busi- traders despise to fund the rebates. exchanges trading venue for small and
nesses already listed on the NYSE and At the end of the day, this conflict mid-cap companies. When the taxi cab
Nasdaq, rather than initial public offer- between brokers getting paid a rebate industry launched an app, did that
ings, and is aiming to list its first com- by the exchange or getting the higher make them Uber? It is very hard to copy
pany in October. quality execution for their client that the value of IEX, ie the trust we have
Another potential weapon in IEXs conflict is going to come to a head and built with investors.
battle for a slice of the market remains well be the beneficiary of that, says Mr Almost a year on from securing
firmly off-limits. One of the industrys Katsuyama, who insists that IEX gets exchange status, Mr Katsuyama doesnt
most controversial practices is for better executions for clients. appear to have lost his firebrand style.
exchanges to pay brokers to post prices The prospect of a change may be He says his biggest challenge is fighting
for shares on their venues the ration- improving, with Donald Trump promis- entrenched interests that prioritise
ale being that it provides an incentive ing to look at Wall Streets practices, and rebates over client best execution, add-
for brokers to make markets in stocks. a new slate of regulators at the Securities ing, however, that the good news is that
Critics, including IEX, argue it creates and Exchange Commission. Various some of the biggest brokers on the Street
an incentive to route trades to venues groups in the market are preparing to are good partners of ours, so I think it
with the highest rebates, not the best lobby, IEX among them. Bats, the US might be just a matter of time.

Commodities

Metals traders braced for second-half fall in demand amid Beijings credit curb
HENRY SANDERSON
Chinas efforts to rein in its shadow
banking sector will sap demand for met-
als in the second half of the year, pre-
senting another headwind for mining
shares, analysts have warned.
Metals prices dropped almost 4 per
cent in May, their third straight month
of declines, underlying how commodity
markets are growing nervous about the
implications of Beijings bid to restrict
the growth of credit, particularly banks
lending to non-financial institutions.
The FTSE All Share Mining index
dropped 2 per cent in May and is down
15 per cent from its recent high hit in
February.
Beijings move to curb debt in Chinas
financial system by issuing tighter rules
on off-balance sheet products has seen
interbank lending rates, as well as yields
on corporate debt, rise this year. That is
likely to hit demand for metals in the
second half, say analysts at Liberum.
Downward pressure to the main
source of loan growth and metal
demand in China is rising, and likely to
result in further tightness in the second
half as higher borrowing costs for some
banks feeds through to average mort-
gage rates and demand, said Richard
Knights, an analyst at Liberum.
The pressure on metals prices is in
sharp contrast to the second half of last
year, when price recovery helped shares
in the worlds largest miners rally on the
back of high hopes for Chinese as well as
US demand.
However, prices this year for industrial
metals and bulk materials, which are
key for miners such as Rio Tinto and
Glencore, have been lacklustre. After
reaching $95 a tonne in February, iron
ore, a key steelmaking ingredient, has
fallen 40 per cent to $55 a tonne, while
copperhasgainedjust2percentthisyear
even though production at the worlds
two biggest copper mines has been dis-
rupted by strikes and export bans.
Compounding the sectors woes yes-
terday was a drop in the Caixin China
manufacturing PMI, which recorded its
first contraction in 11 months.
We expect activity to slow further
London Metal Exchange given the governments efforts to rein in
Index credit growth, notably in the (metals
intensive) property sector, noted ana-
3000 lysts at Capital Economics.
Tightening credit conditions could
2800 limit re-stocking of metals, said Nicho-
las Snowdon, an analyst at Standard
Chartered.
2600 The cause for the risk-off phase
weve seen over the past month or two is
2400 related to the onshore (China) delever-
aging effects that have started to
emerge, Mr Snowdon said. Everyone
2200 expected a phase of tighter credit in
May 2016 2017 May 2017 but what wasnt expected was the
Source: Thomson Reuters Datastream regulatory tightening measures the gov-
ernment has started to enforce.
Last month, Chinas banking regula-
tor issued rules requiring banks to be
more transparent about wealth man-
agement products, or higher-yielding
fund products that channel capital to
borrowers through trusts or asset man-
agement companies.
A large amount of capital has gone to
the metals sector from off balance sheet
lending through wealth management
products, Mr Snowdon said. The con-
cern is it then feeds into the real econ-
omy by raising rates and access to credit
and that could exacerbate whats
already been baked in: a slightly slower
lower-growth profile in the second half
of the year, he cautioned.
Additional reporting by Neil Hume
Friday 2 June 2017
TRADING POST
Jamie
Chisholm
Analysts expect todays US jobs report
will show 185,000 positions were
created in May, and the unemployment
rate stayed at 4.4 per cent.
Earnings are forecast to have risen
by 0.2 per cent, month-on-month. Such
figures will support the markets
Goldilocks narrative, where the
economy is growing but not at such a
pace that monetary policy must be
tightened too quickly.
That scenario is helping underpin
corporate earnings while keeping bond
yields low, which makes equities
appear relatively more attractive.
But, Shyam S. Rajan, rates strategist
at Bank of America Merrill Lynch,
thinks this cosy relationship between
US stocks and debt is fragile. He be-
lieves that whether or not US tax cuts
occur, the supply of US government
bonds is likely to rise substantially.
In essence, the US Treasury is
underfinanced by anywhere between
$2-$4.5tn over the next five years. Of
this, even conservatively speaking,
there is likely to be a $1tn shortfall in
demand using current trends.
The burden of absorbing this extra
supply will fall on three price-sensitive
channels, says Mr Rajan. Foreign
investors may be put off by rising
yields elsewhere as the ECB and BoJ
look to taper their QE. US pension
funds? Our analysis suggests that
rates need to be nearly 120 bps higher
for this community to account for the
entire $1tn. Finally, fixed income
mutual funds. In our estimate, equities
need to be 30 per cent lower for
mutual funds to see sufficient inflows
into bonds to bridge the gap, he says.
jamie.chisholm@ft.com
US non-farm payrolls
Monthly change (000)
300
200
100
0 accommodative monetary policies of
2015 16 17
Source: Thomson Reuters Datastream
London
StanChart and 3i
V
help push index
back towards peak
Michael Hunter
A rally for financial stocks and a
recovery in the resource sector sent the
FTSE 100 back to within a whisker of its
record closing high.
Financial groups provided significant
support for Londons blue-chip index,
led by venture capital company 3i,
which rose 2.7 per cent to 917p after
analysts at Barclays lifted their price
target on the shares from 750p to
980p. Standard Chartered, the UK-
listed bank that is focused on emerging
markets, climbed 1.8 per cent to 740.8p.
Overall the main London index
finished the session 0.3 per cent
stronger at 7,543.77, near last Fridays
record close of 7,547.63.
The heavily weighted mining sector,
Wall Street
Investors warm
to record sales at
Palo Alto Networks
Adam Samson
and Jessica Dye
Palo Alto Networks was set for its
biggest one-day rise since its market
debut almost five years ago after it
signalled a strong reversal in
performance for the past quarter.
Shares climbed as much as 18 per cent
to $139.97 yesterday, which would mark
the biggest gain since the US cyber
security company listed in July 2012,
according to Bloomberg data.
Global overview
Equities hit fresh highs on strong
US jobs and manufacturing data
Bond yields track stocks
higher as FTSE All World
pushes past peak, while
iron ore futures record
sixth straight decline
STEPHEN SMITH
Stocks and core government bond
yields pushed higher yesterday, as pri-
vate sector hiring signalled robustness
in the US jobs market and put global
equities on course to scale new all-time
closing highs.
Both the FTSE All World index and
the S&P 500 were set for fresh peaks
with the FTSE 100 in London closing
only marginally short as investors
showed confidence that the increased
chances of US interest rate rises follow-
ing stronger economic data would not
hobble market rallies.
Equities are mildly firmer in the
wake of the breakout higher in the ADP
[private sector] report, which was only
slightly tainted by the uptick in jobless
claims ahead of Fridays payrolls, said
Action Economics. If the full payrolls
report comes in as forecast, this will give
the Federal Reserve the ammo to follow
up with another quarter-point hike on
June 14.
The first few days of June will see a
welter of heavyweight economic data
that will help shape global investor sen-
timent during the summer months for
the major financial centres.
Optimism on corporate earnings
amid signs of improvement in the global
economy notably a pick-up in the
eurozone have been supporting many
national equity benchmarks.
Historically, low government bond
yields, suppressed by continued ultra-
most of the worlds significant central
banks, were also making stocks appear
more attractive.
Inmarsat
Share price (pence)
26 May 2017
Source: Thomson Reuters Eikon
,QGLFHV &ORVH
)76(
)76(


)76(
)76($OO6KDUH


)76($OO6KDUH<LHOG  
)76()XWXUHV 
\U*LOW<LHOG 
\U*LOW$OO6KDUH5DWLR  
which rebounded from sales during the
previous session, also bolstered the
index. Chilean copper producer
Antofagasta rose 2.1 per cent to 817 p
and Rio Tinto jumped 1.3 per cent to
31.42.
A bullish feel to the index left stocks in
defensive sectors out of favour, with
electricity distributor National Grid
the biggest faller, dropping 3.6 per cent
to 10.50.
Marks and Spencer, the high-street
retailer that is battling to rejuvenate its
clothing business, was prominent
among fallers, the stock trading without
further rights to its latest dividend
payment. It closed 1.8 per cent to 375.5p.
Among technology companies,
Palo Alto disclosed late on
Wednesday that it notched record sales
in its third quarter and signed up the
second-highest number of new
customers in its history for the three
months ending April 30. Revenue was
$431.8m, a 25 per cent year-on-year
increase and ahead of the $411.8m
that analysts surveyed by Bloomberg
had expected.
Expansion within our existing
customer base and new customer
acquisitions in the quarter drove growth
in revenue, billings and deferred
revenue, said Steffan Tomlinson, chief
financial officer of Palo Alto.
For the current quarter, Palo Alto
projected revenue growth of between 20
and 23 per cent, in line with Wall Street
analysts forecasts.
We believe investors will be relieved
by the results and solid guidance
suggesting that the company has
stabilised the business, said Jonathan
Ho, an analyst at William Blair.
While the outperformance was
against relatively conservative
guidance, we note the company faced its
toughest comparison this quarter while
trying to restructure its salesforce.
Despite the mounting information
security threat highlighted by the
FINANCIAL TIMES 25
MARKETS & INVESTING
Markets update
S&P 500 index
Change on day 0.57%
2420
2400
2380
2360
2340
May 2017 Jun
Meanwhile, government bond yields US equities The S&P 500 was on
also tracked higher with stocks as the course to reach a new closing peak as
ISM manufacturing survey pointing to the Wall Street barometer pushed
growth added to the rosier US picture ahead of last Fridays record finish
suggested by the ADP hiring report.
The manufacturing sector is clearly
a source of strength right now and the FTSE 100 index
report boosts the case for a Fed rate hike Change on day 0.32%
at the June 14 FOMC [The Federal Open 7600
Market Committee] meeting, said 7500
James Knightley of ING. 7400
Yields on 10-year Treasuries climbed 7300
3 basis points to 2.23 per cent while the 7200
more rate-sensitive two-year yields May 2017 Jun
pushed 2bp higher to 1.30 per cent.
Bund yields were flat at 0.30 per cent UK equities The FTSE 100 fell just
while those on 10-year gilts moved 2bp short of an all-time closing record after
higher to 1.07 per cent. a rally for financial stocks and a
In commodities, iron ore futures in recovery in the resource sector
China fell 3.9 per cent, their sixth
straight session of declines as traders
fretted that slowing construction activ- Eurofirst 300 index
ity in the worlds second-biggest econ-
Change on day 0.39%
omy will exacerbate an ore glut. 1560
Prices hit their cheapest in seven
months having lost about 14 per cent in 1550
Roland Warmbier/Dreamstime.com
May and more than 37 per cent from a 1540
Unusual tranquillity: FT.com/video 2017 high in February.
1530
With markets showing signs of high correlation, the FTs Brent crude was striving to recover
May 2017 Jun
Dan McCrum looks for turbulence beneath the apparent calm Wednesdays 3 per cent price drop,
which came amid fears US producers European equities The continents
would counteract Opec output cuts. The stocks gained after news that the
But some analysts expressed caution outsized portion of the liquidity has global crude benchmark gained 0.8 per eurozone blocs manufacturing base
on whether the equities market rally found a home, he added. cent yesterday to $51.17 a barrel. Gold saw record jobs growth in May
could extend higher. In a similar vein, John Higgins of Capi- fell 0.4 per cent to $1,263 an ounce.
This bounce in earning growth pro- tal Economics, added: For now at least, In currencies, the dollar index a
vides a false sense of optimism on equi- we dont expect the S&P 500 index to measure of the US currency against a
ties and explains why the market has make more headway. A key reason for basket of global peers rose 0.3 per Nikkei 225 index
managed to stay expensive even as the our continued caution is the outlook for cent to 97.21, while the euro fell by the (000) Change on day 1.07%
20.0
Fed moves to reduce monetary policy corporate profits. same margin to $1.1206.
accommodation, said Mizuhos Steven By mid-session in New York, the S&P Traders were continuing to assess 19.8
Ricchiuto. 500 was up 0.4 per cent at 2,421 on what the prospects of a hung parlia- 19.6
A reduction in policy accommoda- course to beat Fridays closing record of ment in the UK would mean for sterling
tion, combined with the political road- 2,415. The FTSE All World indexs 0.3 as it traded marginally weaker at 19.4
May 2017 Jun
blocks impeding progress of a Trump per cent gains to 307.72 pushed it past $1.2886.
fiscal stimulus programme, suggests the last weeks all-time intraday peak. The evidence from 1974, 1977-78 and Asian equities The regions stocks
economy is unlikely to grow by more In Europe, the Euro Stoxx 600 rose 2010-15 indicates that neither a minor- advanced but Shanghai fell after
than 2-2.5 per cent. Unwinding the Feds 0.4 per cent, while the FTSE 100s 0.3 ity government nor a moderate coali- Chinas manufacturing contracted in
balance sheet likely increases valuation per cent gains left it just 4 points off a tion is an automatic negative for GBP, May for the first time in a year
concerns in the equity market, where an new closing record. said BNY Mellons Simon Derrick.
Micro Focus, which is in the process of
buying the software business of HP Trading Directory
860 Enterprise, stood out with a 2.8 per cent
840 rise to 24.60.
820
800 The mid-cap FTSE 250 rose 0.2 per
780 cent to 20,010.62, just shy of a record
Jun 1 close reached on Friday. The outlook for
companies on the index is more closely
linked to the health of the UK economy.
'D\
FKDQJH Satellite operator Inmarsat was one of
the strongest performers on the mid-

 cap index, as traders read across from


news of the demise of a merger in the
sector. The shares rose 5.6 per cent to
840p after news that the merger


between the satellite business of Japans
SoftBank and Intelsat of Europe was in
danger prompted speculation that
Inmarsat could find itself at the centre
of an alternative bid.
Elsewhere on the FTSE 250,
FirstGroup was under pressure after the
bus and rail operator delivered a
cautious outlook and failed to reinstate
its dividend.
We are disappointed that the board
has not reinstated the dividend,
something which we believe is now
overdue, said Martin Brown, an analyst
at Shore Capital.
At one point the stock fell as much as
10 per cent, before recovering to finish
5 per cent lower at 142.3p.
However, analysts at Liberum said
they had not expected a dividend to be
reinstated today, predicting that
payments would be reintroduced at
some stage this year.
WannaCry ransomware attack, the
stock performance of companies that
provide cyber security has been erratic.
Palo Alto, founded in 2005, is one of
the senior players in the sector, with
more than 37,000 customers in 150
countries. But it has faced rising
competition from companies spanning
tech giants such as Cisco and IBM to
cyber-focused entities such as FireEye.
While Wednesdays quarterly results
was a relief for investors, analysts note
that Palo Alto has yet to prove its
recovery is sustainable.
We believe sales execution
challenges typically take more than one
quarter to resolve, Mr Ho said. In our
view, investors will probably want to see
sustained evidence of traction in the
sales execution improvements and a
return to stronger product revenue
growth before confidence is restored.
Echoing that view, Gur Talpaz at Stifel
said: These results will be met with
relief that the company has found some
measure of religion (or, conservatism)
with regard to its forward outlook.
Still, one quarter should be seen
as just that, one quarter. Or, more
appropriately: jumping over a low
bar doesnt mean youre in the clear,
he added.
26 Friday 2 June 2017

INSIGHT Analysis. Commodities

Leo
Lewis
Purple tea tipped for place at Kenya auction
Rising popularity of speciality Tea price
brews helps farmers diversify Best Pekoe Fanning 1 ($ per kg)
Good intentions will in the largest exporting nation 5.0

rarely overcome the JOHN AGLIONBY MOMBASA

4.5
4.0

habits of institutions The dozens of buyers sitting in semi-

circles at the weekly tea auction in
3.5
3.0
Mombasa are a picture of hushed con- 2.5
centration, eager not to miss the batches 2.0

I
n theory, the June stars are aligned for Japans divi- they have selected. 2013 14 15 16 17
dend aristocrats an index of 49 corporate blue- Apart from the introduction of some
bloods handpicked for the kind of investor chasing technology, it has been like this for dec- Global black and green
rock-solid yield and provable historic outperform- ades, says Brian Ngwiri, trade develop- tea imports
ance. Actual interest may be tempered, however, by a ment manager at the East African Tea $bn
lack of nursery places and government policy on pianos. Trade Association, or Eatta, which runs 6
Since Shinzo Abe became prime minister in late 2012, the 61-year-old auction in Kenyas main Black tea 5
his economic revival programme along with the Bank of port city. Green tea
4
Japans policies have provided the Tokyo stock market However, change is looming in the
with a succession of attention-grabbing tales under the colonial-era building. Although the 3
broad Abenomics story arc. The early euphoria has worn exchange has traded only black tea pro- 2
off (even as the Topix nudges an 18-month high) but duced by the crush, tear and curl (CTC) 1
labour reform, inbound tourism and womenomics have method, Eatta is considering adding 0
each taken their turn at animating investors and offsetting green, purple and other batches to meet 2001 05 10 16
the doctrine that Japan is hopelessly resistant to change. growing demand. Sources: Thomson Reuters; ITC
The strongest of these narratives has been on corporate Buyers note that consumers around
governance reform a bid to make the stock market more the world pay more for speciality infu-
attractive to retail and institutions by cajoling companies sions, with tea shops popping up around Black tea 1 per cent of the 473,000 tonnes that ment in tea in the last 2,000 years. purple tea was exported last year from
to at least pretend they care about shareholders and the US, for example. accounts for Kenya produced last year. But the gov- Kenyas tea directorate has licensed Kenya, against the 56 tonnes of green
empowering investors to make a fuss if the mask slips. Tea farmers face rising production almost all the ernment expects speciality tea produc- seven cottage factories to produce pur- tea. The main market for purple tea is
Success has been elusive but Goldman Sachs leads a costs and a downward trend in prices, 473,000 tonnes tion to quintuple in three to five years. ple tea. A Purple and Speciality Tea Japan, but its getting good interest from
diminishing herd of bulls who argue that this particular and are diversifying in search of higher Kenya produced In recent years Kenyan farmers have Association of Kenya has been formed. the Chinese, North America and
third arrow of Abenomics has hit its mark. A report in returns. Like growers of other soft com- last year started producing green tea, and the Black tea produced by traditional Europe, he says.
mid-April noted a 76 per cent increase in dividends and modities, they have had to endure vola- Dai Kurokawa/EPA
even more specialised purple tea. This withering, rolling and oxidation meth- Tumoi Teas, from Nandi in the Rift
buybacks since 2012, a 58 per cent rise in companies with tile prices. The average hammer price at new cultivar was introduced in Kenya in ods, which is popular in Russia and Iran, Valley, plans to take its purple tea to the
two independent directors since 2014 and a doubling since Mombasa last year was $2.29 a kilo- 2011 after research much of it in Japan also commands a price premium of 20 World Tea Expo in Las Vegas this
2015 of companies using equity-linked compensation for gramme, 16 per cent down on 2015 and showed it contained high levels of per cent over CTC tea. Last month the month.
CEOs. For all the signs of progress, though, the market 20 per cent lower than in 2012. anthocyanins, the super-antioxidants Kenya Tea Development Agency said it According to Jacob Kahiu, head of the
never evolved a knockout Prices have recovered this year fol- found in blueberries and pomegranates. would spend Ks880m ($8.5m) to equip Union Tea Brokers in Mombasa, says a
play on the theme. The gov- lowing a drought across east Africa, but Henry Njeru, who has planted about a 11 factories to produce orthodox tea. factor in favour of the speciality produc-
ernments own attempts
Domestic and they are not expected to remain high. quarter of his 550-acre estate with pur- This month Eatta is beginning a six- ers is that the quality of most western
first pushing the creation of international Unlike crops such as coffee and cocoa, ple tea plants, says it sells to exporters month feasibility study to determine supermarket teas was declining as big
the JPX-400 good govern- tea is not traded on a futures exchange. for up to $30 a kilo. People seem con- whether to expand the auction beyond brands focused on volume. This opens
ance index and later ordering
punters have The Mombasa auction sets global vinced by the health benefits, he says. CTC tea to orthodox, purple, green, the door for better quality teas and spe-
other well-intentioned indices not trusted benchmark prices. Last year 408,000 However, purple tea underwent a white and other teas. ciality teas, he says.
faltered in part because tonnes, an all-time high, was sold from rocky baptism. Paul Bain, president of Production of speciality teas in east But speciality teas face a challenge,
none definitively outper-
Abenomics nine producing countries at the Justea, a tea importer based in Vancou- Africa is growing and we want to be the adds Mr Kahiu. The marketing has
formed the Topix benchmark. exchange. Some 80 per cent came from ver, Canada, is among those involved one-stop shop for exporters and buy- become very expensive, and the small
But in December 2015, S&P Dow Jones Indices joined Kenya, the largest exporter and third- in its relaunch. Now that refining issues ers, says Edward Mudibo, Eatta manag- players cannot afford the millions of
Japan Exchange Group to draw up a version of the divi- largest producer of black tea. have been addressed, he says, purple ing director. dollars the giants like Tetley and Lipton
dend aristocrats series that worked well in the US. Abe- Speciality tea accounted for less than tea could be the biggest develop- Mr Njeru estimates that 60 tonnes of can, he says.
nomics, ran the theory, had advanced Japan to a point
where some investors would leap at stable high-yielders.
Constituents are chosen from companies with a float-ad-
justed market capitalisation of at least 50bn for having Equities
followed a policy of consistently increasing dividends or
maintaining stable dividends every year for at least 10
years. As a proxy for the Abenomics ambition of
improved corporate governance and a more tangible com-
Grantham says higher
mitment to shareholder interests, say analysts, this index
is good. Although launched only 18 months ago, its pro-
valuations here to stay
ducers track its performance back to July 2006: total
returns between then and May 2017 have been 140.5 per
cent. That outperforms the Topix (including dividends), ROBIN WIGGLESWORTH But my job description is to
says Nomura strategist Hisao Matsuura, by 93.0 per cent. US MARKETS EDITOR think about markets and not
The index is highly seasonal and significantly outper- The US stock market has to be a member of a cult.
forms in June the month into which thousands of Japa- entered an era of perma- That is a sharp change of
nese corporates squeeze annual shareholder meetings. nently higher valuations tone. As recently as 2015 Mr
The concentration of AGMs, says Mr Matsuura, intensifies and probably has further to Grantham said global mar-
scrutiny of managements and allows the more sharehold- rise, according to Jeremy kets were ripe for a major
er-friendly ones (as defined by hiked dividends) to shine. Grantham, founder of asset decline. But the British-
On paper, the aristocrats index should trigger a stam- manager GMO and a spotter born founder of Boston-
pede. In fact it has elicited a shrug. The index is tracked by of financial bubbles. based GMO which man-
just two investment trusts: one with a market cap of Y2bn, ages $77bn has revisited
the other with measly net assets of Y310m. Concerns over equity valua- many assumptions.
The problem this reveals is twofold. First, Japanese retail tions especially in the tech- This time seems very,
investors have not trusted the stock market since the col- nology sector, which has very different, he wrote in
lapse of the 1980s bubble. More pertinently, since mid- powered much of this years his latest quarterly letter to
2015 domestic and international punters have not trusted rally have been reawak- investors.
Abenomics to deliver predictable, investible change. ened by the S&P 500s march Despite some wild swings,
And this week yet another key Abenomics promise to record highs, accompa- US price-to-earnings had
central to policies of female empowerment was aban- nied by political rancour in averaged more than 23 times
doned. A pledge to cut the number of children on nursery Washington and signs that since 1997, compared with
waiting lists to zero by March 2018 has been pushed to the the US economy is failing to nearly 14 in the preceding
end of fiscal 2020. The government cites the difficulty kick into a higher gear. decades, he said.
recruiting staff for thousands of new nurseries but refuses Mr Grantham, a notori- The central reasons were
to relax the stipulation that applicants must demonstrate ously bearish value investor the increase in the earning
full proficiency in either the piano, guitar or accordion. who called and dodged power of US multinationals
Investors may not care too much about nursery teaching the Japanese, dotcom and from globalisation; the grow-
guidelines but they know what it looks like when good housing bubbles, said he saw ing political influence of cor-
intentions crash into Japanese institutional habits. The lat- little cause to worry in the US porations; more onerous reg-
ter tend to win, which is why even the dividend aristocrats market. ulations, stifling the growth
cannot inspire a sense that this time is different. Although he preferred of upstarts and leading to
emerging market equities, he monopolies; and above all a
leo.lewis@ft.com pointed to the pillars of secular and durable decline
healthy corporate profits, in interest rates.
low interest rates and a lack Even a crash like 2008
of euphoria. wasnt enough to knock the
Ive dedicated my life to market off this new rail, Mr
financial bubbles, and I dont Grantham said. The ground
More comment and data on ft.com think it is a bubble, he told has shifted quite a bit.
the Financial Times. This To argue that valuation
is the broadest market of all metrics have climbed to a
Y Fast FT Our global economies, headed time . . . That is not the new long-term average is
team gives you market- by Brazil, Russia, India nature of a bubble. close to sacrilege for value
moving news and views, and China. Mr Grantham who has investors.
24 hours a day, five days ft.com/beyondbrics built his career on the obser- His new tone had been
a week. ft.com/fastft vation that market levels received with groans and
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a tend to revert to their long- rattled a lot of cages, Mr
irreverent financial blog. look at what is driving term average reluctantly Grantham conceded.
Join Paul Murphy and the global currency conceded that US share But the world has
Bryce Elder for the daily market. ft.com/podcasts prices might have shifted changed, he said, and long-
Markets Live session at permanently to a higher held assumptions had to be
Y Lex Video Analysis level since the late 1990s. re-examined and some cast
11am. ft.com/alphaville
and opinion from the A dedicated value inves- aside.
Y beyondbrics News and team on the hot issues tor like me eats, breathes and You now have to treat
comment from more affecting companies and dreams mean reversion, he previously cast-iron rules
than 40 emerging markets. ft.com/lexvideo said. Its very hard to see with suspicion. Theyre more
when the world has changed. like aluminium rules now.
 FT
ASIA-PACIFIC
INNOVATIVE LAWYERS
2017

www.ft.com/apil JUNE 2 2017

RESEARCH PARTNER
2 | FTReports FINANCIAL TIMES Friday 2 June 2017
FINANCIAL TIMES Friday 2 June 2017 FTReports | 3

Asia-Pacific Innovative Lawyers

Inside
Innovative Lawyers
Introduction
Firms that want to innovate should start
with the organisations culture Page 4

M&A
The money-movers are trying new legal
levers as they seek to secure funds for
takeovers Page 7

War on human
trafficking
The law is a weapon
in the battle against
slavery and child
abuse Page 10

Alternative finance
From carbon credits to Chinese central
bankers, imaginative ways to raise capital
can involve unfamiliar liaisons Page 12

Deals to keep
the lights on
Complex structures
underpin
development finance
that could transform
lives in emerging
markets Page 14

Special achievement
Danny Gilbert, co-founder of G+T, stands
out for leadership and his commitment to
Picture credits: Getty Images/EyeEm Premium (above); Getty Images/Age Fotostock (front page)
change Page 15

Ambitious clients challenge

Technology
From smart contracts to an anti-bribery
app, legal tech is programmed to disrupt
lawyers livelihoods Page 17

firms to raise their game Spotlight: Australia

Australian firms are inventive at home and
ambitious overseas Page 20

In-house

W
elcome to the fourth Financial Times Innovative the partnership model. Throughout, they recognise that technology is Companies legal
Lawyers report for the Asia-Pacific region. critical to being able to offer the best service to clients. Just as would-be teams must master
The FTs Innovative Lawyers reports have for more tech hubs sprout across the region, law firms are seeking to win a digital
many skills as their
than a decade provided a showcase for European and edge in what they can offer.
North American law firms innovations and the stories On a darker theme, smugglers trafficking people overseas for employers demand
behind them. Those are the worlds leading legal sectors. But now, with exploitation is a global challenge, but some of the most cruel cases in know-how across all
the Asia-Pacific region home to the second-largest economy in the recent years have emerged in Asia. Revelations of the victims misery, sectors Page 25
world, China, there is a sense of growing maturity among the regions from online child abuse to slave labour on fishing boats, have increased
law firms. the pressure on governments and companies to act. This has provided Business models
Their clients are hungry for legal expertise. Some of Asias biggest lawyers with opportunities to deploy their insights and ingenuity for a Firms are experimenting with fresh ideas
corporate names are on the hunt for acquisitions in the west and closer social cause. Law firms have joined with anti-trafficking groups to on reorganisation
to home. Other smaller, but ambitious companies also seek to raise scrutinise how the law can be used to tackle the problem, including the
Page 28
finance for expansion. Governments want funds to build bold use of corruption law to beat the smugglers.
infrastructure projects. For this report, we received 502 submissions and nominations from
They are pursuing their ambitions against a backdrop of caution 71 law firms and 90 in-house legal teams. Top 10
among the authorities. For instance, Chinese regulators have moved to After extensive research, 50 of the most innovative law firms to individuals
curb capital outflows from the country. submit entries were ranked, along with 18 company legal teams and we Innovation is about
In response, lawyers homegrown and international are also publish here our annual selection of 10 individuals who are making
more than just tech,
developing their legal skills, whether it is in clever structuring of cross- a difference.
border deals or negotiating complex rules; and they are also says overall winner
restructuring themselves, from their physical work space to the way Jamil Anderlini Sophie Mathur
they share out their work. They are even showing a willingness to ditch Asia editor Page 30
284| |FTReports
FTReports FINANCIAL TIMES
FINANCIAL Friday
TIMES 2 June
Friday 2017
2 June 2017 FINANCIAL TIMES
FINANCIAL Friday
TIMES 2 June
Friday 2017
2 June 2017 FTReports
FTReports| |529

Asia-Pacific
Asia-PacificInnovative
InnovativeLawyers
Lawyers Asia-Pacific
Asia-PacificInnovative
InnovativeLawyers
Lawyers

Ready to think the unthinkable

By embracing technology, firms are more likely to accept the Really good lawyers might miss out FT 25 (Asia-Pacific headquartered) good for the individual, Ms Glendinning adds.
because they were in the wrong spot: Andrew Cunningham, Sydney-based partner
inevitability of the change that is coming, says Reena SenGupta Geoff Gishubl, partner at Ashurst and innovation leader at MinterEllison, says
Aaron Bunch for the FT Empower will become a permanent fixture. The

Business of Law
firm has been pleasantly surprised at how lit-

Responsibility
tle resistance the programme has faced, since

Total Score
Expertise
lawyers can be a tad cynical sometimes about

Social
Legal
F
Work practices rom how much they charge to how ity of costs as well as lower charges. This is forc- partners were largely responsible for deciding Managers at Australian firm MinterEllison this kind of thing. In fact, he says, some are
work is assigned, some of the Asia- ing law firms to plan pricing and work allocation juniors work. It is, however, still the job of are similarly enthusiastic about the impact of its HQ country Rank Law firm or organisation putting themselves forward for the scheme.
Pressure to offer more Pacific regions top law firms are over- in a more systematic way. Its what the partners to work out which projects need which Empower programme, which is designed to Australia 1 Gilbert + Tobin 84
Organisational 66
innovations0 extend150 to how

for less is pushing law firms hauling how they are organised.
Fierce competition for work and pres-
accounting firms and other professional serv-
ices providers have been doing for decades.
legal skills.
Naturally, you would [previously] have
challenge the normally risk-averse mindset
you notice in lawyers and asks staff across the
Australia/ China 2 King & Wood Mallesons partners 67 are remunerated.
66 0Asia-Pacific
quartered45firms are64experimenting
133 head-
with
130 differ-
to experiment with how sure on fees have forced the lawyers to over- Sydney-based Corrs Chambers Westgarth is some lawyers who were getting overworked and firm to come up with new ways to overhaul their
Australia
India
3
4
MinterEllison
Nishith Desai Associates
21
ent models of partner compensation to drive
62 44 23 129
they organise themselves, come some of their traditional cynicism on
innovation, in ways that management and staff
so eager to meet these challenges that it is
working with Harvard Business Schools Organ-
others who became under-utilised and
frustrated, says Geoff Gishubl, partner at
own divisions.
Its about encouraging innovation at every South Korea 5 Yulchon
more collaborative behaviour, says Tony Kin-
23 70 21 114
near, managing director, Asean and North Asia
writes Laura Noonan would not have imagined only a few years ago. ization Lab, a forum that helps businesses to Ashurst, based in Perth. Sometimes youd have level in the team and often the best ideas come Australia 6 Corrs Chambers Westgarth at Thomson 86 Reuters.0 24 110
The changes can affect all areas of a firm, experiment with new organisational practices, really good lawyers who might miss out and not from the most unexpected places, says Fiona China 7 JunHe Indias 47
Nishith Desai
43 Associates
0 has90dropped
whether it involves stripping senior lawyers of in an attempt to pinpoint how it should change. be used to the best of their capacity, because Glendinning, MinterEllisons chief experience the term partner in favour of leader to allow
China 8 Zhong Lun Law Firm 0 63 20 83
their right to allocate work or challenging secre- The legal industry doesnt sufficiently apply they were literally in the wrong spot, sitting in a officer. Our secretaries, for example, have more dispersed decision-making. After exten-
taries to come up with their own initiatives for experimental rigour to how it organises itself, corner or not next to the partners who were the blown us away with their ideas to create a better India 9 Trilegal 38 38 0 76
sive internal debate, the firm says, it decided
dealing with lawyers and clients. Some firms says Robert Regan, partner at Corrs. The exper- most busy. experience for our clients, she adds. They are Japan 10 Mori Hamada & Matsumoto that the 0narrow67200 year 0 old partnership
67
have even abolished the hallowed partnership iment is in its early stages, but the firm is confi- Other Ashurst offices are also using the often the critical glue that holds things together Australia 11 Henry Davis York model should
0 be replaced
43 with
23 a self-managed,
66
structure in favour of a more inclusive form of dent that it will lead to better ways of working. workforce allocation manager system, so the from an operational perspective and their dynamic 0network 59 with distributed leadership
India 12 Shardul Amarchand Mangaldas & Co 0 59
leadership. The Sydney, Perth and other Australian Sydney workforce can be easily called on for involvement means that they are aware of what that was about competency and inspiration,

The best law firm

The innovation is largely driven by the offices of Ashurst are also trying to apply a more time-critical projects on the other side of the the team is trying to achieve. India 13 Anand and Anand 45
not ownership. 0 0 45
financial crisis and companies generally need- scientific approach by introducing work allo- world. There were plenty of partners initially Innovations from lawyers include working South Korea 14 Shin & Kim Mr Kinnear
0 also22highlights
21 outsourcing
43 and
ing to do more for less, says Titus Rahiri, direc- cation managers to replace a process where who were quite cynical, says Mr Gishubl. on-site for clients when drafting complex India 15 J.Sagar Associates technology 0 as focuses
20 of innovation
22 in
42 the busi-
tor at Hong Kong-based KorumLegal, a bou- Ashurst drafted in lawyers who had seen the advice. The piece of work is done more effi- ness model for law firms.0He cites41in-house
Singapore 16 Rajah & Tann Singapore 20 21
tique legal consultancy that works for law firms Youd have really good lawyers system in action in London in order to win over ciently which is good for the team, ultimately
Singapore 17 WongPartnership
developments such as Herbert Smith Freehills
0 40 0 40
and directly for clients. opinion in the Sydney office. A year on, Mr

innovators alter
saving the client money good for the client, Alternative Legal Services business, while oth-
Charlotte Rushton, managing director for who might not be used to the Gishubl says: Our [staff] retention rates have and the team member feels empowered to Cambodia 18 DFDL 18
ers are embracing 21legal process
0 39
outsourcing,
large and mid-sized US law firms at Thomson best of their capacity because improved, our utilisation rates have improved, choose where they work to deliver the best out- India 19 Cyril Amarchand Mangaldas where firms 0 pay a 23 third party0 to carry 23out proc-
Reuters Legal, its legal services business, says and generally things are working more come. [This] creates less angst around the ess work, so they can punch above their weight
clients everywhere are demanding predictabil- they were in the wrong spot effectively and more productively. whole work-life balance dynamic which is
South Korea 20 Bae, Kim & Lee 0 0 22
when local teams are manpower lean.
22
Australia 20 Lander & Rogers 0 0 22 22

their culture first

Australia 20 Refugee Legal 0 0 22 22

Business of Law: Strategy & Changing Behaviours Business of Law: New Business & Delivery Models Japan 23 Atsumi & Sakai 0 21 0 21
India 23 AZB & Partners 0 21 0 21
Malaysia 23 Zico Law 0 21 0 21

partners at the same level of experience earn We are trying to

O
ne law firm dominates this years
rankings for the FT Asia-Pacific
Innovative Lawyers report. Gil-
bert + Tobin of Australia has
achieved five top rankings and
awards, including the special achievement
prize for Danny Gilbert, its co-founder and sen-
The importance of culture in driving change Central FT 25 International
and innovation is revealed in the initiatives of district of the same but there is scope for bonuses for Methodology
other Asian law firms profiled in this report. Hong Kong exceptional performance. The benefits of this take hours out of the
Another relative newcomer, Yulchon in South Bloomberg system are that it encourages partners to refer work in an industry
Korea, appears in the FTs top five most innova- work to the most appropriate person and to FT Asia-Pacific Innovative Lawyers is an FT Law 25
tive law firms in the region this year. share clients; both of these are critical to provid- that embraces them annual rankings report and awards for The FT Law 25 rankings are a pure
Business of Legal Social Total
Founded in 1997 by entrepreneurial partners ing a quality legal service. lawyers working in the Asia-Pacific region. aggregate of each law firms scores for

innovation
Originality

Rationale
Rank Law firm Law Expertise Responsibility Score

Impact
ior partner. from the top three incumbent South Korean Mr Xiao, who recognises that lawyers are in Shortlists for the awards comprise the top ranked submissions across the private

score
Total
1 Linklaters 62 68 20 150

innovation
Started in 1988, G+T has made change an firms, Yulchon has grown from a law village to Firm the habit of not changing something they are

Originality
scoring submissions in each ranking. practice categories of the report. Separate

Rationale
2 Herbert Smith Freehills 82 21 23 126

Impact
imperative, which is unusual for many busi- a company with 400 professionals. One of these used to, decided not to impose change but to The FT and its research partner RSG rankings cover Asia-Pacific law firms and

score
Total
nesses but particularly so for law firms. What is Carl Im, who has a PhD in physics from Stan- allow partners a choice. He presented it as an Firm
Consulting have devised a unique international law firms, headquartered 3 Allen & Overy 22 88 0 110
lessons can be learnt from the G+T story? ford University in the US and is leading the experiment they could opt into. Ultimately, methodology to rank lawyers on innovation. outside the region. 4 Norton Rose Fulbright 61 21 22 104
The firms capacity for innovation is helped firms digital transformation. Standout more than 80 per cent of partners decided to Law firms, in-house legal teams and other
5 Ashurst 39 63 0 102
by being a first-generation law firm still run by a Many elite law firms fail to use the talents of MinterEllison A cultural changepool their earnings
programme which translates and redistribute
the firms themintoinpractical
innovation strategy the steps by 7 8 8 23 legal service organisations are invited to Innovative Individuals
getting lawyers and staff to challenge how and where they work on specific tasks. Teams test new ways of working 6 Freshfields Bruckhaus Deringer 0 75 22 97
charismatic founder. This enables it to sidestep their business professionals, often referred to over up to eight weeks beforenew system.
reporting back and refining the ideas. Innovations that have been implemented Standout
make submissions. This year, we invited law The Top 10 Innovative Individuals are
the clumsy decision-making processes that pejoratively as the non-lawyers. Not so the are changing daily working practices for secretaries and associates, and have measurably both increased client
interactions and flexible workingBesides
at the firm. letting lawyers experiment, changing
firms to submit work in three broad areas: selected from nominations and6 submissions
Herbert Smith Freehills Opened the first alternative legal services hub in China, and one in Australia, following the 8 8 22
7 Shearman & Sterling 0 71 0 71
model first launched bythe
the firm in Belfast and Dublin. The teams offer a lower-cost
to all and technology-led
ofservice to
bedevil many more established law firms, team at Yulchon, which ensured that Mr Im was attitudes often involves devising clever ways to legal expertise, business of law and categories
support a range of transactions, regulatory work and disputes. The Shanghai hub allows the firm to review millions
the report. The 10 8 Baker McKenzie 21 44 0 65
where committees prevail. involved in important transactions in order for bring the outside world into the law firm. Link- of Chinese-language
social documents
responsibility. Wewithout needing
looked attolawyers
transfer data or run disclosure processes
individuals abroad,
are
compliance with Chinas state secrets law. The hubs also help support an increasing global demand for Chinese-
ensuring on the basis of
selected
9 Ropes & Gray 0 40 23 63
More importantly, being managed by one of him to make informed recommendations. Out laters, the winning international law firm in the work
language from the perspective
legal services of the business
and provide round-the-clock particularly
support to the firms global offices. strong client reviews, interviews,
10 Paul Hastings 19 42 0 61
its founders allows the firm to maintain an of this came eYulchon, which lets the firms law- region, has also taken the most innovative indi- challenges they were trying to solve, rather additional written responses and a history of
experimental culture. Asked if he has experi- yers have a lead role in automating their work: Highly Commended vidual award the winner is its Singaporean than their own legal practice areas. professional achievement. A panel of judges 10 White & Case 0 41 20 61
enced resistance to the strong embrace of tech- they can develop apps to streamline processes, Nishith Desai Associates Replaced partner Sophie
partner Mathur.
job title with At ofthe
leader as part firms
a move global
to a leadership model where 8 8 6 22
For the FT Asia-Pacific Innovative Lawyers selects the award winner from the shortlist. 12 Eversheds Sutherland 0 23 21 44
nology at the firm, Mr Gilbert says this did not look at scenarios and outcomes and augment lawyers
targets.
partnership
take greater responsibility for managing meeting
themselves. The in March,
model Ms
also gives Mathur
lawyers laid
unlimited leave and no Report 2017, we received 502 submissions This year, the judges were: Michael
12 Hogan Lovells 0 44 0 44
matter: They [the partners] just had to come their legal expertise. Yulchon is trying to com- down a challenge: Do we want to wait for dis- Highly
and Commended
nominations from 71 law firms and 90 in- Skapinker, associate editor, FT; Barney
12 Pinsent Masons 21 23 0 44
along. He feels the requirement for lawyers to bine legal and non-legal components to create Corrs Chambers Westgarth ruption to come
In collaboration to us
with Harvard or do
Business weOrganizational
School want to shape Lab, thethe
firm is running a 7 8 6 21 house legal Westgarth
Corrs Chambers teams. Research
CorrsEdge is an was conducted
online Thompson,
legal resource for start-ups FT legal
that allows businesses correspondent;
to automate, 7 7 Harriet
7 21
field experiment to collect data under rigorous academic standards on law firm productivity. The data will be publicly execute and store legal documents. Legal documents and tools cover a businesss lifecycle from start-up to
change is so obvious that it cannot be a fad. value for clients, says Mr Im. future of our profession?
available and will contribute to industry understanding of how legal work is allocated and resourced. by a team
acquisition of RSG researchers between
or sale. Arnold, FT Special Reports assistant editor; 12 Slaughter and May 0 44 0 44
The requirement may be obvious, as the FTs Convincing lawyers to adopt disruptive tech- Ms Mathur had realised that innovation was February and May 2017. RSG conducted Reena SenGupta, chief executive, RSG 16 Latham & Watkins 0 43 0 43
Innovative Lawyers reports try to show, but law nologies may be challenging but asking them to Linklaters not
Working with start-up just about
Otonomos technology
to develop but for
a blockchain model about
company creating an and
share ownership
governance. The firm used the opportunity build its network, profile and expertise in the emerging area of technology
6 7 7 20 Herbert Smith Freehills
interviews with and A newreceived
way of packaging and pricing
feedback complex legalConsulting;
from work, detailing tasks,
Liam activities
Brown,
deliverables alongside fixed fees. The more granular and transparent approach allows clients control over costs and
and founder 7 and
8 5 20
16 Sidley Austin 0 43 0 43
firm leaders worldwide do not find it as easy to accept a different remuneration system is and finance, doing most of theinnovative work pro bono. environment. To change her col- 290 clients,
which tasks senior
they buy, and haslawyers
helped theand executives
firm win to
key client mandates. executive chairman, Elevate; and James
18 Dechert 20 21 0 41
convince staff to buy into the changes. Many of harder still. Pay structures in law firms under- leagues mindsets, she decided to support start- arrive at the final rankings. Odell, vice-president and managing director
these involve automation, different skills and pin behaviour and attitudes. For law firm lead- ups. In a break from the firms focus on blue- Each entry is scored out of 10 points for of Australia and Asia Pacific, Elevate. 19 Orrick, Herrington & Sutcliffe 0 20 20 40
new ways of working. As Mr Gilbert puts it: We ers, they are the levers by which they manage chip clients, she brought in blockchain technol- originality, leadership and impact. They are 20 Mayer Brown JSM 19 20 0 39
are trying to take hours out of the work in an the partnership. ogy groups such as Otonomos and Ethereum as benchmarked against each other to arrive at Research Partner RSG Consulting 21 Bird & Bird 23 0 0 23
industry that embraces [them]. Xiao Wei, managing partner of Chinese law Commended clients and encouraged the firm to work differ- Commended
the final rankings. The in-house lawyers The RSG Consulting research team has more
22 Kirkland & Ellis 0 22 0 22
Most lawyers are terrified to see their exper- firm JunHe, realised that for the firm to prosper, Ashurst A new innovation system,
ently to support
which them. innovation IQ test, external collaborations and a 5 7 7 19
includes a competition, rankings
LOD - Lawyers are drawnDeveloping
On Demand from nominations as well and a new
the business in Asia-Pacific thantime20 years
recording app.experience
The smartphoneanalysing
6 6 the7 legal
19
series of training and events, has engaged three-quarters of the firm in less than a year and seen more than 30 new app is used by contract lawyers to record time and activities automatically, giving clients an overview of their work 22 Weil, Gotshal & Manges 0 22 0 22
tise which they have worked so hard to accrue partners had to collaborate more. Under its per- ideas implemented. One of the benefits of bringing in radically AWARD SUPPORTED BY as submissions, but all entries require third-
and integrating with LoDs finance system to generate bills and invoices.
profession. The RSG research team members
being devalued and apparently easily formance-based remuneration system, part- new clients was to convince lawyers, whom she party validation and commendation, usually were: Reena SenGupta, Yasmin Lambert, 24 Berwin Leighton Paisner 0 21 0 21
replaced by software. To accept this change ners were working like sole operators. He CMS dubs
Building on an established sectoraapproach
cynical andbreed,
network ofthat
local the
firms,world
the firm isis changing.
connecting leading UK and
Chinese Universities to help them expand and collaborate, while building the firms industry profile and practice in
6 6 6 18 from
Norton other senior
Rose Fulbright colleagues
In collaboration within thelegal services provider LawPath,
cloud Lucy Pearson,
the firm offersPatrick
a range ofHeardman,
packages to start-ups, combining production of legal documents and a specified number of hours of legal advice from
fixed-fee 6 Emilia
6 6 Yau18 24 DLA Piper 0 0 21 21
means understanding how technology is trans- moved the firm to a modified lockstep system, the region. At the partners March meeting, it voted for a organisation.
the firm. and Victoria Parkey.
24 Skadden, Arps, Slate, Meagher & Flom 0 21 0 21
forming business. as favoured by many western law firms, where multimillion dollar budget for innovation.
6 | FTReports FINANCIAL TIMES Friday 2 June 2017
FINANCIAL TIMES Friday 2 June 2017
Money-movers try new levers
Mergers and acquisitions
Tighter rules in China mean
that securing funds for
takeovers needs specialist
advice, writes Don Weinland
A
n unfamiliar Chinese name has
been appearing in merger and
acquisition deals across Europe.
Shougang Group, a state-owned
steel company that was once one of
Chinas largest steel producers, has been prowl-
ing developed markets for assets outside its core
business.
The Beijing company began working with
bankers and lawyers months ago to look at
Q-Park, a Netherlands car park operator that
could fetch more than $2.4bn. Shougangs name
has also been linked with Indigo, a French car
park company expected to fetch $4.3bn.
The steelmaker is an outlier because few
state-controlled metals companies have sought
M&A outside their core expertise. A buyout in
Europe, however, is likely to cost Shougang
more than initially expected because of esc-
alating legal fees and offshore financing rates
A Shougang from banks. Recent regulatory tightening in
mine in China has led to top-notch legal advice being
Peru: the
state-owned
highly prized by groups looking at foreign mar-
kets.
steel It has also put pressure on lawyers to innovate
company
has been
with regard to how to pay for deals, often with
little cash crossing the Chinese border.
hunting Regulations can change rapidly in China.
overseas There have been lots of changes over the past six
assets months, says Jay Ze, a partner at Eversheds
outside its Sutherland and head of the law firms corporate
core practice in China. At the start of a transaction,
business you need to be able to fully inform the clients on
Xinhua / eyevine what regulation looks like and what their
options are.
Recently, the options for Chinese groups have
thinned out. Since late November, regulators in
Beijing have sought to hold back the amount of
capital draining out of the country, partly in the
form of outbound acquisitions during the
record year for cross-border deals in 2016. That
has meant greater difficulty in gaining approval
from the State Administration of Foreign
Exchange, or Safe, for exchanging local cur-
rency into dollars or euros.
Deals in which companies consider scooping
up assets outside their core competencies, such
as Shougangs Q-Park bid, have experienced an
outright clampdown. Regulators, experts say,
FTReports | 7
Asia-Pacific Innovative Lawyers
fear that such deals are no more than expensive
ways to move wealth overseas.
More than ever, there is a premium on legal
advice to ensure deals can proceed without
inadvertently breaching fast-changing rules
aimed at controlling the scale of Chinese out-
bound investment.
As of mid-May, Chinese groups had
announced $37.7bn in outbound M&A deals so
far in 2017, according to data from Thomson
Reuters, the media and information company.
This compares with about $101bn in just the
first three months of last year.
Several high-profile buyouts have also col-
lapsed, such as Dalian Wandas $1.1bn takeover
of Dick Clark Productions in the US. Tycoon
Wang Jianlin, founder of Dalian, confirmed that
Chinese currency controls had sunk the deal.
But the more than halving of overall deal
value this year has been countered by a rise in
offshore finance for Chinese acquisitions, law-
yers say. Instead of looking to onshore Chinese
Regulations can banks for loans, the most aggressive Chinese
groups are seeking pricier offshore financing
change rapidly in from global banks.
China. There have One means of offshore funding, called non-
recourse financing, allows banks to lend against
been lots of changes the acquisition target. For that part of the
in just six months Continued on page 8
8 | FTReports FINANCIAL TIMES Friday 2 June 2017

Asia-Pacific Innovative Lawyers

Money-movers try new levers Legal Expertise: Managing Complexity & Scale (International)

Continued from page 6 an investor group with PAG Asia Capital in

financing, no renminbi needs to be exchanged order to pull together $3.6bn for US printer
onshore. Companies that have already made maker Lexmark International.
several overseas acquisitions can also pledge The capital controls may give Chinese [stra-

innovation
Originality

Rationale
securities in those assets as collateral for loans, a tegic buyers] more incentives to partner with

Impact

practice known as margin finance.
Sophisticated Chinese groups, such as HNA,
which has spent $40bn on acquisitions in 30
months, have shown high demand for such
services.
Over the past six months, most of the financ-
ing HNA has received has been far removed
from the regulatory perils of China. The com-
pany used margin finance to drive its $6.5bn
purchase of a 25 per cent stake in US hotel group
Hilton Worldwide.
But even offshore lending is proving challeng-
ing for some Chinese companies, their banks
and lawyers, says Philip Li, a partner at
Freshfields Bruckhaus Deringer in
Hong Kong. The target compa-
nies being pursued by Chinese
companies are often not invest-
ment grade, says Mr Li. Those
Chinese buyers who are used to
the terms of investment grade
financing in China can struggle to
cope with the terms of western-style
acquisition finance and high-yield prod-
ucts.
Another popular tactic is finding cash-rich
partners overseas. Many Chinese groups have
tied up with private equity funds that have
capital offshore. Last year, Chinas Apex Tech-
nology pioneered the strategy when it formed
score
Total
sponsors that have offshore resources on some Firm
of these deals, which often requires creative
structuring, says Charles Ching, head of Weil,
Gotshal & Manges China practice.
For many lawyers with more than a decade of Standout
experience advising on Chinese deals, the Shearman & Sterling The firm played a leading role in every stage of the Central Java project, the first under 9 9 9 27
Indonesias new public-private partnership scheme. Lawyers created a new deal and risk allocation structure, a unique
curbs on moving capital are nothing new. Owen government guarantee to give comfort to lenders and sponsors, and lobbied for new land acquisition laws. The PPP
structure sets a precedent for future PPP deals in energy and other industries.
Chan, managing partner of Hogan Lovells in
Hong Kong, points out that strict foreign ex- Linklaters Acting for the full lender group for the financing of Yamal LNG, the first multi-sourced international project 8 9 8 25
change controls for most Chinese companies financing incorporating RMB-denominated funding along with tranches from France and Russia, the firm created
a structure that mitigated the multitude of risks involved in the project and ensured compliance with US and EU
have been the norm and it has only been in the sanctions against Russias oil and gas sectors. The transaction is a model for multinational co-operation in the energy
sector. Commended: Stuart Salt.
past few years that regulators have started to
create a system for private Chinese compa- Shearman & Sterling In a transaction that spanned two decades, the firm advised Light Rail Manila Corporation on 8 9 8 25
the development and financing for the renovation and extension of a railway in the Philippines. Lawyers negotiated
nies to invest overseas. appropriate risk allocation associated with a concurrent fare collection upgrade to the railway network, and designed
The regulatory restrictions have a commercially viable concession agreement for investors. The deal represents the first fully non-recourse project
finance for a public private partnership in the Philippines.
pushed many buyers to return to
a traditional offshore financing Freshfields Bruckhaus Deringer Developed a multi-layered strategy for Chinese electrical appliance maker Midea 8 8 8 24
to acquire German robotics maker Kuka. Lawyers devised an initial stakebuilding process, negotiated unusual
structure, where companies ob- concessions for the continued management of Kuka, and helped to navigate the Committee on Foreign Investment
(CFIUS) in the US approvals process and political sensitivities. The transaction is a model for Chinese companies
tain funding from syndicates of seeking to acquire foreign assets.
onshore banks with an offshore
facilitating agent, says Mr Chan.
In theory, any genuine, strate-
gic deal that does not trigger any pol-
Highly Commended
icy red lights should be possible if you
have enough time to go through the approval Allen & Overy 7 7 8 22
Acting for the International Finance Corporation, the firm provided critical input on credit and political risk protections
and registration processes with regulators, Mr to structure Myanmars first internationally tendered power project, the Myingyan IPP, which is now a template for
investment in Myanmars energy needs. Commended: Stephen Jaggs.
Chan says. The practical issue is, how many
buyers can afford to sit out this process . . . and Paul Hastings 6 8 8 22
When the newly elected Greek government made unexpected revisions to the tendering proposal for shipping
how long will sellers be willing to wait before company Coscos complete acquisition of the Pireaus Port Authority, the firm devised a solution whereby Cosco would
make a partial acquisition to close the deal, with the remaining purchase funds put in escrow with an option which can
pulling the plug on the deal? be exercised in five years.

Slaughter and May 7 8 7 22

To enable Dalian Wandas privatisation, the firm convinced the Securities and Futures Commission to accommodate
Legal Expertise: Enabling Business Growth (Asia-Pacific headquartered) new financing structures for a 19 member consortium to finance the transaction, and obtained an irrevocable
undertaking from the companys shareholders that allowed the consortium to avoid purchase of all shares while
remaining compliant with Hong Kong takeover panel rules.

Weil, Gotshal & Manges 7 8 7 22

In one of the largest Chinese investments into the US, the firm structured HNA Groups acquisition of a 25 per cent
equity interest in Hilton from Blackstone Capital while Hilton was undergoing a process to spin off into three separate
public companies. The firm overcame many regulatory and timing hurdles and negotiated new governance rights for
HNA to close the deal.
innovation
Originality

Rationale

Impact

score
Total

Firm

Standout Commended
MinterEllison and Gilbert + Tobin When the Australian Competition and Consumer Commission blocked Sea Swifts 8 9 8 25
Ashurst Acting for Atlas Iron, the firm negotiated a collaboration agreement with existing contractors and a first-of-a- 7 7 7 21
kind scheme of arrangement to dismiss historical shareholder claims to enable the companys debt restructuring and
merger with Toll Marine Logistics, the firms took it to the competition tribunal and provided a convincing rationale
continued operations.
that the merger should be allowed as it would benefit the public. It has influenced Australian thinking on merger
clearance and helped to establish the use of the tribunal as a viable route, particularly for instances where the public
interest is at stake.
Herbert Smith Freehills Achieved an Australian regulatory first and helped to resolve a bidding war in the acquisition 7 7 7 21
of Asciano through a complex dual consortium break-up bid structure. Commended: Philippa Stone.
Cyril Amarchand Mangaldas The firm persuaded the Competition Commission of India that Sonys acquisition of Ten 7 9 7 23
Sports Network, which effectively created a duopoly, would not be detrimental to the sports broadcasting market.

Mori Hamada & Matsumoto The firm created an efficient integration structure and process for GCA, the Japanese 8 8 7 23
Mayer Brown JSM Advised the lenders on risk allocation and negotiated key protections with the government in 7 7 6 20
Myanmars first internationally and competitively tendered power project. The Myingyan IPP provides a model for
investment bank, and UK-based investment bank Altium, which meant neither party had to pay capital gains tax in the public-private partnerships in Myanmar.
UK and Japan.

Paul Hastings In Samsungs $8bn acquisition of US listed car audio maker Harman, the firm negotiated a 6 7 7 20
Highly Commended ground-breaking four-week agreement allowing Samsung to satisfy shareholder fiduciary concerns through a full
due diligence process while ensuring that Harman would not solicit other bidders. This was Koreas largest outbound
King & Wood Mallesons In one of the largest public deals of 2016, the firm acted for Apex Technology, the Chinese 7 8 7 22 acquisition to date.
ink cartridge maker, in its acquisition of Lexmark International, the US print provider. Lawyers were pivotal in
designing the multi-layered transaction, obtaining both Peoples Republic of China and US regulatory approval in a
tense geopolitical environment. Ropes & Gray Devised the proposition and bid structure to convince IDG Ventures to sign an exclusivity agreement 7 7 6 20
with client China Oceanwide, in order to acquire the entire International Data Group company and its subsidiaries. The
Gilbert + Tobin The firm helped to create a new takeover structure to allow Qube, the Australian logistics company, to 7 7 7 21 structure allowed for different closing schedules based on CFIUS approval for IDGs media entity.
acquire Ascianos ports business while pre-empting potential competition concerns.

Rajah & Tann Singapore When lawyers helped Marvellous Glory Holdings acquire China Minzhong Food, they 7 7 7 21 Ropes & Gray Adapted protection structures normally used in debt financing for an equity deal involving a seven-par- 7 6 7 20
provided a new approach for an acquirer that wanted to privatise its targets and meet the 90 per cent share ty consortium in the $300m investment in e-Shang Redwood, a leading Asian logistics company.
threshold required by Singaporean regulations.

Yulchon Lawyers helped their client, Mirae Asset Financial Management, which was then the 6th largest securities 6 7 8 21 Sullivan & Cromwell Advised the underwriters for Kyushu Railways privatisation, navigating existing arrangements 7 7 6 20
firm in Korea, bid for, and acquire, Daewoo Securities for $2.15bn, acting in a broad advisory capacity as the client did with the Japanese government and a record of impairment to ensure a sufficient level of comfort for investors.
not instruct financial advisers.

Shearman & Sterling Devised a way for Phoenix Healthcare to acquire China Resources Healthcares hospital busi- 6 6 7 19
Commended nesses under the terms of an expansion instead of a takeover. This avoided certain regulatory obligations that would
have affected the commercial viability of the deal.
LNT & Partners Lawyers overcame local Vietnamese regulatory hurdles to structure a deal, which enabled Aeon 7 7 6 20
Financial Service, the Japanese company, to acquire a local finance business. This was the first time a foreign investor
has bought a wholly Vietnamese-owned finance company. White & Case In a precedent-setting transaction for Japans energy industry, the firm advised Tepco in its joint 6 6 7 19
venture with Chubu, two of the three largest utility companies in Japan, to form JERA. Lawyers conducted parallel
negotiations with more than 100 counterparties to unbundle each companys assets to form the new company.
WongPartnership The lawyers advised Citic, the private equity firm, on its acquisition of Biosensors International 7 7 6 20
Group, the first amalgamation of a company primarily listed on the Singapore stock exchange.

WongPartnership Using an offer implementation agreement, unusual in Singapore, the firm enabled CMA CGM, the 7 7 6 20 AWARD SUPPORTED BY
French container shipping group, to acquire Neptune Orient Lines in a way that managed the long time period from
sign to close and met multiple regulatory hurdles in different jurisdictions.

Shardul Amarchand Mangaldas & CoThe firm enabled its client, private equity firm Blackstone, to take a controlling 7 6 6 19
stake in Mphasis, the Indian technology company, introducing the concept of liquidated damages when the seller
refused to agree to break fees.
FINANCIAL TIMES Friday 2 June 2017 FTReports | 9
10 | FTReports
Asia-Pacific Innovative Lawyers
Legal weapons in the war
on slavery and child abuse
Social responsibility
Anti-trafficking
organisations are calling on
law firm expertise to beat
dealers in human misery,
writes Michael Peel
H
uman trafficking is a worldwide
scourge, but some of the most
cruel cases of people being illegally
transported for exploitation are in
Asia. Revelations of the misery of
trafficked people, from organised online child
abuse to slave labour on fishing boats, have
increased the pressure on governments and
companies to act.
The revelations have encouraged law firms to
join forces with anti-trafficking groups to
analyse which laws can be used to tackle the
problem and how the rules need to be tough-
ened. The move is part of a developing culture of
pro bono work in the region.
The refugee crisis on Southeast Asias seas in
2015 revealed the extent of people smuggling
and human trafficking. Thousands of people,
including many members of Myanmars perse-
cuted Muslim Rohingya minority, were
stranded at sea on their way to Thailand, Malay-
sia and beyond. Authorities in Bangkok and
Kuala Lumpur said they had discovered a
network of smugglers camps that included
graves filled with scores of bodies. People held
in such camps have described how they were
assaulted by smugglers who would in some
cases extort thousands of dollars from them, or
their families back home.
Catches from fishing boats that use enslaved
workers sometimes enter the supply chains of
multinationals. Big food companies say they are
working to address this, while governments,
including Thailands, say they are instituting
tougher enforcement of regulations of boat
operators.
In some of the worst cases, children are
victims of trafficking. Online child abuse is a
growing problem in Asia Pacific countries from
the Philippines to Australia. Interpol said in
January that it had identified 10,000 victims of
child sex abuse around the world by using
software on images and videos to make connec-
tions between victims, abusers and locations.
The links between child exploitation, slavery
and trafficking is increasingly clear.
Liberty Asia, a leading anti-trafficking
charity, has been helped by pro bono work from
two law firms, White & Case and Ropes & Gray.
White & Case worked on a review of the
Convention Against Trafficking in Persons,
Especially Women and Children (Actip). The
2015 agreement by the 10-member Association
of Southeast Asian Nations (Asean) has lofty
intentions, says the firm, but also significant
weaknesses compared with its European
equivalent.
Jon Bowden, the White & Case partner who
led the project, says the lawyers were drawn to it
because they were aware of the dislocation of
people across the region, who have been forced
to move by a variety of crises.
The research has also been a useful reminder
of potential warning signs that companies
operations might be tainted by trafficked
labour, he says. It sharpens peoples minds
from a diligence standpoint what to look for
in personnel that are being used by businesses.
Problems the firm focused on included gaps
in enforcement, corporate liability and domes-
tic laws in the regions states. A wider difficulty
is that although the convention is a joint effort,
implementation of it falls to the countries
themselves, reflecting Aseans tradition of not
interfering in its members domestic affairs.
White & Cases review is designed to feed into
both the Asean secretariat and member states
own updating of their laws to comply with the
convention. The firm says its study is also
unique in comparing the Asean rules with Euro-
pean anti-trafficking rules.
Archana Kotecha, Liberty Asias head of legal,
praises White & Case for a creative approach
that doesnt limit the law to the words that
define it. She adds: It doesnt matter that
the words dont say it, we can still guide actions
and efforts according to international stand-
ards.
Ropes & Gray has been working with Liberty
Asia as it expands its pro bono work in Asia. It
has hired a programme co-ordinator and added
FINANCIAL TIMES Friday 2 June 2017
four lawyers from offices in the region to its
pro bono committee.
A Hong Kong-led team in Ropes & Gray has
been working on how to use anti-bribery law to
fight trafficking. The firm is developing a toolkit
for anti-trafficking groups. It aims to show how
companies and other organisations could be in
breach of the US Foreign Corrupt Practices Act,
how they can avoid being sucked into involve-
ment in human trafficking and how they can
report suspicious activity most effectively. The
firm also hopes that its work on using the act
and other laws to highlight financial flows
potentially linked to human trafficking could
help cut off some of those sources of money.
Separately, a project by Norton Rose
Fulbright targeted the problem of online child
sex abuse in Australia, which generated 11,000
referrals to the countrys federal police in
2015 alone.
The firm was asked by Anti-Slavery
Australia, a campaign group, to prepare a report
FINANCIAL TIMES Friday 2 June 2017 FTReports | 11
Asia-Pacific Innovative Lawyers
Social Responsibility
innovation
Originality
Rationale
Impact
score
Total
Firm
Standout
Corrs Chambers Westgarth Working with The Big Issue Foundation, the firm created a legal mechanism for the Homes
for Homes initiative to tackle the lack of social housing in Australia. Homeowners can donate a tax-
deductable 0.1% of the sale price of their properties to fund social housing projects. The mechanism works within the
8 8 8 24
framework of existing state laws, is nationally applicable and provides an opt-out option. The firm estimates that the
Homes for Homes initiative will raise A$1.8bn over the next 20 years. Commended: Nathaniel Popelianski and Jeremy King
Henry Davis York The firm supports human rights and equality for LGBTIQ people, working through its law reform 8 8 7 23
programme to help community legal centres and not-for-profit organisations professionalise their interactions with
the government on law and policy.
Herbert Smith Freehills A long-term partnership with legal ethics training organisation Babseacle has seen the 7 8 8 23
development and integration of legal ethics curricula and training across the region, the genesis and growth of the
annual Asia Pro Bono Conference, and new collaborative partnerships for Babseacle to increase the impact of its work.
Nishith Desai Associates Working with YSB-India, a social business enterprise incubator conceived by Nobel Peace 8 8 7 23
Prize winner Muhammad Yunus, the firm has designed the legal structure for Indian businesses to form their own
in-house social enterprises.
Ropes & Gray Produced analysis and guidance on the Foreign Corrupt Practices Act for anti-human trafficking 9 8 6 23
organisation Liberty Asia in order to help organisations identify potential trafficking instances in their supply chains.
Highly Commended
Bae, Kim & Lee The firm founded the Dongcheon Legal Center for Non-profit Organizations to provide NPOs with 7 8 7 22
integrated legal support in Korea. Commended: Wook Yoo
Freshfields Bruckhaus Deringer With the general counsel of Goldman Sachs Japan, Naosuke Fujita, the firm
co-founded the Lawyers for LGBT and Allies Network (LLAN), to fight for same-sex marriages and LGBT rights, which
8 7 7 22
are not covered in Japans Equal Opportunity Act. More than 25 law firms and four in-house legal teams are members.
J.Sagar Associates The first law firm in India to institutionalise its commitment to pro bono work through a formal
policy, which allows lawyers to count 60 pro bono hours a year to their chargeable targets.
7 8 7 22
Lander & Rogers and Refugee Legal Collaborating with Refugee Legal, the firm co-founded a programme that taps 7 7 8 22
into corporate lawyers in 14 firms to support asylum seekers going through the fast track assessment process in
Australia. Commended: David Manne and David Burke
Norton Rose Fulbright Working with Anti-Slavery Australia, the firm produced a comprehensive report on online 7 8 7 22
child exploitation to tackle the problem at a structural level and improve child protection.
Commended
DLA Piper Caseworkers learn what is involved when cases of sexual violence against women are prosecuted, thanks 7 7 7 21
to a long-term commitment with Hong Kong charity Rain Lily. Victims can access legal advice promptly.
Eversheds Sutherland The firm trained the Ministry of Commerce in Cambodia on public international law topics, to 7 7 7 21
level the playing field in commercial and investment treaty arbitrations between local and international lawyers.
MinterEllison Helped establish Vanguard, a social enterprise that will help people who have experienced mental 7 7 7 21
on how authorities deal with online child Dislocation: illness to gain work experience by providing laundry services to St Vincents Hospital in Queensland, Australia. With
more than 50 partners, the project is a model for at-scale social procurement.
exploitation and identify areas to improve. Rohingya
The research examines existing laws, refugees tell Shin & Kim Created and drove a project to protect and improve the legal rights of illegitimate Philippino children, 7 7 7 21
sentencing of offenders, the role of internet harrowing Kopinos, in South Korea.
service providers and other companies, and stories
education and prevention. It also looks at inter- about their Yulchon An initiative spearheaded by the firms public interest subsidiary, Onyul, improves legislation and structural 6 8 7 21
protections for adult guardianship in South Korea. It is the only law firm to be appointed as a public guardianship
national collaboration and the link between search for corporation by the Seoul Family Court.
online child exploitation and human traffick- safety
ing. The work will be presented at the seventh Getty Linklaters Developed a toolkit and training course with Hagar International to improve the experience of trafficked 6 7 7 20
children going through the judicial system in Cambodia. Over 100 lawyers, case managers, psychologists, counsellors
World Congress on Family Law and Childrens and other advocates have now been trained.
Rights in Dublin, Ireland, in June.
The pro bono work on trafficking matches Orrick, Herrington & Sutcliffe Worked with Ocean Outcomes to develop and launch Japans first fishery 7 7 6 20
lawyers skills and time to a problem that is improvement project to implement sustainable fishing practices and protect vulnerable species.
deeply disturbing and in danger of overwhelm-
ing efforts to tackle it. Leanne Collingburn, White & Case Reviewed legislation and enforcement mechanisms, and conducted a comparative analysis of the 6 7 7 20
Ropes & Gray national pro bono executive for Norton Rose
European convention to provide recommendations to support the enforcement of the newly-adopted Asean
Convention Against Trafficking in Persons, Especially Women and Children (Actip).
has been working Fulbright Australia, says the project was com-
pelling because of the urgency of the task and Yoon & Yang In a systematic approach to provide access to justice in South Korea, the firm has launched two legal 6 7 7 20
on how to use the importance of a subject that people find
centres, with a focus on dispute resolution, to institutionalise and integrate pro bono work.
anti-bribery law to frightening. Anti-Slavery Australia, she says, is Zhong Lun Law Firm The firm helped the SEE Foundation, an environmental protection organisation, to 7 6 7 20
an incredibly sophisticated albeit under- take advantage of new legislation in China that allowed charities to have control over their own funds.
fight trafficking resourced organisation.
2012| |FTReports
FTReports FINANCIAL TIMES
FINANCIAL Friday
TIMES 2 June
Friday 2017
2 June 2017 FINANCIAL TIMES
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| 21

Asia-Pacific
Asia-PacificInnovative
InnovativeLawyers
Lawyers Asia-Pacific Innovative Lawyers

Australia up from
From carbon Down
credits to Under
Peoples investors which include funds such as TIAA, innovation work. They dont always have
Bank of and Calstrs, the California teachers pension much flexibility. But they really want to take the
China: scheme opt for cash instead of carbon. market structure forward and they want to
central The truth is that many investors dont know attract international issuers and the very best
bankers much about carbon credits. The point is to international investors.

Chinese Lcentral bankers

helped pull expose them to that, says Mr Wilder. [The Other innovations in the region dealt with
off a first in investors] have to elect each year whether to challenges that are more familiar to lawyers:
Expansion earning how to code is becoming a attempt to outpace rivals at home and, increas- i n n ov a t i n g t o s t a y o n t o p o f t h e special take credits or cash. If they are really savvy, they structuring complex deals to very tight time-
normal part of the job for lawyers at ingly, in the wider region and beyond. competition, says Mr Gilbert, who cites G+Ts drawing should be able to sell the credit for a higher price tables.
Fierce competition has Gilbert + Tobin, the Sydney-based In G+Ts case, the firm has developed soft- egalitarian culture and communication as key rights bonds than the cash interest. A 27-strong team from Hogan Lovells, for
made Australian firms corporate law firm. The idea is that ware tools that streamline and automate some strengths.
by acquiring this skill, lawyers will of the most time-consuming and repetitive legal Many Australian law firms are emerging as
LightRocket via
Getty Images
Another regional first was a renminbi-
denominated deal backed by the IMFs basket
example, was needed to structure a $70m
investment by Goldman Sachs private equity
inventive at home and become more tech-literate
fierce debateand will develop a tasks related to corporateintransactions,
devising andinclud- enabling some of the most innovative in the Asia-Pacific of currencies, known as special drawing rights. arm into Red Planet Hotels.

A
Alternative financing is under way among proving instrumental
ambitious overseas,
The pursuit writes
of imaginative
feel for how technology
bond market can specialists
help them in work
Asia. ingthese
more efficiently.Some believe the regions markets mentation.
searching databases and verifying docu- region and arguably ahead of leading US and UK
breakthroughs.
Examples Lastofyear it patented
innovative dealssome
in theofpast
these
year firms. Not only are these Australian trail blazers
While SDR products essentially backed by a
basket of dollars, euros, yen, sterling and ren-
This fast-developing budget chain has am-
bitions to expand across the region but still
Jamie
waysSmyth
to raise capital can This has caused controversy,
are at last coming of age, says
butSam
others innovations and itbonds,
include: forest has begun sharing
in which its know-
interest is paid embracing the latest developments in technol- minbi are commonly used as reserve assets by lacked the scale to appeal to many banks. The
Nickless, G+Tsfear chief
theoperating
current boom officer.
willSome
turn out how in with
carbonclients.
credits; Chinas first covered deal, ogy but they are reforming traditional work central banks, the aim was to highlight Chinas timetable facing Hogan Lovells was just two
involve unfamiliar liaisons, people
to befrom otherand
shortlived lawthat
firms havewill
there criticised our to In
be a return February
where G+T lawyers
the funds borrowed tookarepartbacked
in a hack- by a practices. impending inclusion as a reserve currency, months. Structuring the loan involved taking
coding programme,role of saying its ridiculous to of athon with Westpac Banking Corporation
and the first to ren- MinterEllison, another law firm based in which took place in October. onshore security over the chains assets in coun-
writes Jennifer Hughes their normal
teach
Newlawyers
York and to code.
London.
poor relations to the likes ringfenced
develop
pool of collateral;
and test inventive
minbi-denominated responses
special drawing to legal
rights Sydney, is providing opportunities for lawyers The World Bank raised 500m in SDRs tries that are often considered risky in legal
But
Bondthisissuance
misses the point.
in the Thissoared
region isnt designed
in the past challenges identified
bonds, before by the currency
the Chinese banks in-house
had even seeking work on a contractual and temporary about $700m through the deal, which was terms, including Thailand, Indonesia and the
to year
teachtolawyers
reached torecord
be coders butintointernational
levels help them counsel. joined This enables us toMonetary
the International charge clients
Fundsless SDR basis. Last year it set up MinterEllison Flex, more than two times oversubscribed. Philippines.
understand the power of
dollar-denominated coding,
debt inspire
by early May.them
Fewer forbasket.
our overall work and it frees up lawyers from which enables clients to hire contract lawyers to Although rare, SDR bonds are not themselves Allan Wardrop, the partner who led the deal,
with ideas
local and enable
borrowers them to ask
are registering our tech
to market their time-consuming
As well as that,tasks, says Mrlegal
borrowers Nickless,
advisersas hepro- work in-house to boost their own legal capacity. new: the innovation lay in making this particu- concedes that innovation in such transactions
experts
dealsto inwork
the US,on projects.
which implies they are more pulls ducedoutinnovative
his mobile waysphone to demonstrate
to work across borders Australian law firms have always been lar deal possible. One challenge was that the can be hard to replicate in the next deal because
G+T is alsoabout
confident sponsoring a new course
their ability to raiseatmoney
the G+Ts and Smart
in vastlyCounsel
differingapp, which
legal provides
systems tips to forced
in order to be more efficient
Conservation projects and
haveinnovative than
proved a popular It is hard to get professional funds flowing China Foreign Exchange Trade System of the differing complexities that are involved in
University of New
locally. That South Wales,
suggests that Asiawhichis gives law and
generating draft clauses
develop formsfor of corporate
financing legal teams.
in which internat- their international
field for bond marketcounterparts because
innovation there
everywhere. into conservation, says Martijn Wilder, the (CFETS), run by the Peoples Bank of China, did each one. But he nevertheless predicts a grow-
students
deeperpractical
pools ofexperience
capital from of the latest legal
sources with a Mr Nickless
ional investorsis sitting beside Danny
feel comfortable taking Gilbert,
the risk areIna lot of large
Asia, firms inthe
it includes a market
worldswhich
first isforest
not Sydney-based head of Baker McKenzies climate not publish reference rates for all SDR curren- ing market for similar private equity-based
technology and systems. of local needs and co-founder
better understanding of investing and managing
onshore in Chinapartner of G+T, in that
and elsewhere. deep,sold
bonds, saysbyJohn
theDenton, chief executive
International Finance Cor- at change and finance team, which structured the It is hard to get cies at the same times each day. funding.
Australia is one of the worlds most competi- the firms
regional norms. Along new offices
the way, some in of
Sydneys
them have highbattled
rise Corrs Chambers
poration, an armWestgarth. [Also]
of the World the Aus-
Bank, which deal. One way of doing that was to use a tradi- The PBoCs system captured the points but There arent so many debt funds yet, but I
tive Arguably,
legal markets, with lots for
more important of lawyers in a a Barangaroo,
those backing with stunning
with bureaucracy views ofgovernment
and persuaded the citys tralianraised market
$152mhas totypically
finance been
foresta place where
conservation. tional financing tool to raise money, which professional funds they werent publishing them so it had to think they will increasingly be looking at this
limited domestic economy.view
this-time-is-different This ishasthe
spurred
level of harbour skyline.
institutions G+T has
to accept newworked hardstructures.
financing to chal- globalThelaw firms want
five-year bondstooffered
have a footprint.
interest of 1.55 per could be directed into forest conservation. flowing into revise its system, says Christine Chen, a part- type of deal particularly in Asia where youve
legal practitioners
innovation to embrace
apparent in bondnew technology,
transactions lenge A fewAustralias
have evenlonger
trekked established law firms
for days through rain- Incentrecent years
in either cashthere
or inhas been
carbon a rash
credits soldof by Critical to the deal was a $12m commitment ner at King & Wood Mallesons, who praises the got high-growth businesses who cant yet tap
business
across practices and ways
the Asia-Pacific of working
region. Lawyersin anare such as 150-year-old
forests Allens.
to research their We need to keep
projects. the Kenyan forest schemeContinued on page
the deal will 22
support. by miner BHP, which will pay the interest if the conservation efforts of Chinese central bankers to make the the mainstream markets, he says.

Business of Law: Knowledge,

Legal Expertise: Data &
New Markets &Intelligence
Capital (International) TheLegal
powerExpertise: New Markets & Capital (Asia-Pacific headquartered)
of coding:
Sam
Nickless,
G+Ts chief
operating
innovation
Originality

officer

innovation
innovation
Rationale

Originality
Originality

Rationale
Rationale
Impact

Impact
Impact

James Horan for the

score
Total

score
score

Total
Total

Firm FT
Firm Firm

Standout
Standout
King & Wood Mallesons Published an open source DnA (Digital and Analogue) architecture for smart contracts, 9 9 6 24
which blends human and machine languages, or law and code. The initiative is a prototype to demonstrate how law Standout
Freshfields
should Bruckhaus
be integrated Deringer or
with blockchain Working with the Asiancontract
other self-executing Development Bank,
code to the human
ensure firm structured
judgment Asias
comesfirstinto
climate 8 8 9 25
playbond. This is theor
in unexpected first certified
unusual green bond in an emerging market and, with the ADB acting as a credit enhancement
circumstances. King & Wood Mallesons In a landmark development for Chinas bond market, the firm acted for the World Bank 8 9 8 25
guarantor, has opened a way for international investors to fund infrastructure projects; this was previously barred by on the issuance of special drawing rights bonds that were payable in remnimbi. It helped structure the transaction,
restrictions on direct lending. The structure has been replicated and will ultimately help countries in southeast Asia which involved numerous firsts and gained regulatory approval for bonds that would allow investors in China to
Anand andthe
narrow Anand Predictive
looming fundinganalytics
gap forhelps analyse
essential and betterprojects.
infrastructure understand the firms client relationships. Data 9 8 6 23 diversify their portfolios and help to internationalise Chinese currency.
drawn from a range of financial and communications systems are used to predict client behaviour and guide client
relationship priorities.
Allen & Overy Acting for the managers, the firm worked with the banks to design a first-of-its kind high yield bond 8 8 7 23
dealDeveloped
for ReNewthe Power,
Lvxieanapp
Indian renewablesofcompany. The firm carefully crafted the swap mechanism to channel
JunHe
funds raised byshare
an offshore
for thousands
special purpose
lawyers, clients,
vehicle Neerg
judges, prosecutors
backfacilitates
to ReNewreferrals
and academics
while mitigating
in China to 8 9 6 23
communicate and knowledge and experience. The app also between the
the risk ofnew
firms currency
alliance
fluctuations.
of local Chinese law firms.
Highly Commended
Linklaters Advised the Bank of China on the issuance of the first green covered bond, where proceeds will be used 8 8 7 23 Nishith Desai Associates Represented and led a group of investors in negotiations with the Securities and Exchange 7 8 7 22
Highly Commended
to finance projects with a beneficial environmental impact. The bond was issued onshore, with collateralised assets
located offshore.
Board of India, to enable the National Stock Exchange of India and Bombay Stock Exchange to list after years of
investor frustration with the organisations lack of governance rules.
MinterEllison ME Taskflow was developed internally to manage high-volume and repeatable work. It is now used 7 8 7 22
to manage 35 per cent of the firms matters and guides lawyers through tasks while providing access to know-how,
precedents and tools to generate legal documents and emails automatically.
AZB & Partners The firm advised Bombay Stock Exchange on its initial public offering, the first Indian stock exchange 7 7 7 21
to be listed.
Highly Commended
Norton Rose Fulbright Built an online, searchable risk allocation tool for the G20s Global Infrastructure Hub. It 6 7 9 22
provides guides and benchmarks which will help governments in emerging markets develop new infrastructure DFDL Legal & Tax In a refinancing of a hydroelectric dam in Lao, the lawyers transferred financing arrangements 7 7 7 21
Hogan Lovells The firm devised the security structure for Goldman Sachs complex lender of last resort loan for Red
projects. 7 8 7 22 from the old lenders to the project to a consortium of new lenders. They had to create a complex, itemised structure
Planet Hotels. The loan enables Red Planets growth in so-called frontier markets, and provides greater investment to ensure the new lenders were secured under Lao legal restrictions.
opportunities in jurisdictions that have a higher level
toof risk.
Herbert Smith Freehills A more data-driven approach budgeting gives clients greater certainty over costs in 7 7 7 21
disputes. The firm combines detailed pricing of each phase of the dispute with ongoing analysis to predict costs more
accurately.
Zico Law In the largest issuance in Malaysian Ringgit to date, lawyers utilised Shariah mechanisms to enable the 7 7 7 21
Hogan Lovells The firm worked with Hong Kong regulators to define the regulatory regime for stored value facilities, 7 7 8 22 transaction worth RM3bn. The perpetual sukuk means the issuer can defer the profits payable and opens up new
and have helped several companies, including Tencent, to obtain licences to operate these products. The structure possibilities for islamic finance in Malaysia.
created balances consumer protections while allowing a necessary level of competition for the new financial service.
Commended: Mark Parsons.
Commended
Latham
Dechert & Watkins
A legal analysisAdvised
showedReNew
that anPower on a new
investment structure
treaty to access
claim against theinternational capital markets.
Indonesian government couldLawyers
be made 6 8 8 7 6 7 20 22
navigated
in relation complex
to toxic haze Indian regulatory
from forest fires inrestrictions
2015. It wastoused
design a structure for a back-to-back
by non-governmental issuance
organisations of Indian
and others rupee
to put
denominated
pressure Masala bonds,
on the Indonesian
Energy.
and USand
government dollar bonds
raise through an independent offshore special purpose vehicle, Neerg
awareness. Commended
Paul Hastings A collaborative knowledge management system that uses document automation, and connects 6 7 6 19 Khaitan & Co When HT Global IT Solutions Holdings wanted to issue senior notes worth $300m, it faced legal and 7 7 6 20
lawyers to external information resources. Developed in Hong Kong, it is being rolled out across the firm. regulatory hurdles because its main asset was a listed Indian subsidiary. Lawyers undertook an unusual disclosure
exercise to enable the offshore fund-raising to progress under Indian law.
Gilbert + Tobin The Smart Counsel App provides user-friendly answers to in-house counsels most frequently asked 5 6 7 18
Commended
legal questions. It links to a legal document execution tool and includes online courses for continuing professional Majmudar & Partners Advised Baidu Hong Kong on establishing an Indian subsidiary and MoboMarket, its mobile 7 6 7 20
development. marketplace. This has given Baidu a platform to sell services in India and gain regulatory approval in the developing
Latham & Watkins The firm advised the government of Indonesia on the design and structure of a new onshore bank 7 7 7 21 online marketplace sector.
trancheAtoSingaporean
Linklaters finance a third process
forum train in the
for in-house Tangguh
lawyers LNG project.
responsible The project
for innovation creates thousands
is fostering of local jobs
new collaborations on and 5 7 6 18
provides
subjects suchgreater
as cloudenergy security in the area.
computing.
MinterEllison With early-stage investment in Australia in decline, the lawyers devised a new model to solve 7 6 6 19
longstanding flaws in this investment stage. It allows investors to employ their capital over a long period of time in a
Trilegal A review
Norton of new maternity
Rose Fulbright The firmbenefits
designedlawitsinclients
India examined thefor
winning bid connection between
construction of theemployee friendly Wind
270MW Sapphire 6 7 6 7 6 7 18 21 tax-efficient manner. More than AUS$300m has been invested.
maternity
Farm inbenefits and Wales,
New South employee retention,
which includedand
thehas helped to change
establishment attitudes within
of a micro-grid companytheand
Indian IT industry.
inclusion of community
investment options to allow members of the public to invest in the renewable energy project.
Mori Hamada & Matsumoto The firm advised on the listing of the first infrastructure fund on the Tokyo Stock 7 6 6 19
AWARD SUPPORTED BY Exchange, and provided ways to maximise investment returns and overcome disclosure challenges.
Linklaters After the establishment of Chinas first Stock Connect programme in 2015, the firm has revised and expand- 6 8 6 20
ed the legal infrastructure to launch the Shenzen-Hong Kong Stock Connect, enabling mutual market access.
Shardul Amarchand Mangaldas & Co Lawyers facilitated a rare outbound Indian transaction in the acquisition of a Sri 7 6 6 19
Lankan based paint company by a subsidiary of Indias largest paint company, Asian Paints. They had to deploy their
Sidley Austin Represented Temasek in its Astrea III bond offering, launching Singapores first listed private equity 7 6 7 20 legal and commercial skills when there was a mismatch in the deal valuation by acquirer and selling shareholders.
bonds. The bonds represent an important step in the development of Singapores bond market.
 | FTReports
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2 June 2017 FINANCIAL TIMES
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| 19

Asia-Pacific
Asia-PacificInnovative
InnovativeLawyers
Lawyers Asia-Pacific Innovative Lawyers

Deals designed
Programmed Continued from page 16 Deloitte, the professional services firm, in 2016 concepts such as good faith, he says. Making connections: workers install project, which Mr Jaggs says could be used by the technical risks involved in harnessing steam
physics from Stanford University and once predicted that 114,000 jobs in the legal sector in His firm has developed smart contracts and electrical towers on the outskirts of Myanmar again. The programme was backed from underground.
worked as a derivatives trader at Goldman the UK alone are likely to be automated within he observes that these digital and analogue Yangon, Myanmar by several developers and international com- Still, the firm managed to structure financing

for disruption Sachs, as a senior adviser. He now helps Yulchon 20 years. It points out that computers now out-
develop technology that provides low-cost com- perform paralegals and junior lawyers in
contracts are a blend of computer code and of
human discretion that can kick in as a safety
AFP mercial lenders, and Myanmar achieved its
most competitive tariff rate to date.
that included the following: the first climate
bond from an emerging market certified by the

to keep the lights

pliance tools, including apps, for clients. The reviewing documents. valve, during a financial crisis for example. In In Indonesia, Shearman & Sterling used a new Climate Bonds Initiative; the first local-cur-
firm is also encouraging its lawyers to create In future, predict some lawyers, more con- the case of smart contracts, Mr Farrell says, markets to finance big projects without interna- kind of guarantee concept for the $4.3bn financ- rency project bond in the Philippines power sec-
new solutions themselves. tracts might be composed not just in human parts of some financial markets agreements are tional capital, says Stefan Robertsson, an ing of a new coal-fired power station in Central tor; the first credit-enhanced project bond in
One application focuses on a new anti- language but in computer code, particularly in totally mathematical such as when the energy sector expert at The Lantau Group, a Java. The plant was critical to the long-term Asia since the 1997 Asian financial crisis; and
corruption law in South Korea. Introduced last areas such as complex financial derivatives price of a derivative can be adjusted by sub- Hong Kong-based electricity and gas consul- supply of energy to the Java-Bali region and new the first green bond issued in the Philippines.

on in emerging
September, it covers an estimated 4m civil serv- where many legal agreements already con- tracting one number from another which can tancy. In the power sector these are typically technology means the plant will have less envi- In West Papua, Indonesia, Latham & Watkins
ants, schoolteachers and journalists and limits tain pages of mathematical formu- be written in computer code. the countries where the biggest investments in ronmental impact than traditional coal. navigated World Bank rules that ban lenders
the value of meals and gifts to which they can be las. Where it starts to get tricky, the electricity sector are needed, he says. So Some of the basic principles [of the deal] can from seizing a projects assets and revenues if a
treated by their contacts. These are dubbed smart however, is if the legal contract we end up in a paradox where the countries with be replicated on other projects and in other loan defaults and local regulations that require
Yulchon has developed an app with 3.7m or so contracts because they can specifies concepts such as the greatest need for investments are the coun- countries in particular, the key risk allocation export payments to be made onshore. The
anti-corruption scenarios and a list of the execute part of their func- stating that a price must tries most relying on international financing. between public and private sector, says Bill result was that international banks were willing

markets 41,000 South Korean entities whose employees tions themselves through
are covered by the new rules. software programs,
Clients seeking guidance about a forthcoming including automatically
situation can feed in details and ask questions calculating the pay-
using a chatbot. In the case of corporate ments due in a deriva-
hospitality, for example, this might involve tives contract and then
be determined in a com-
mercially reasonable
manner or in good
faith.
Thats not mathemati-
cally representable, so we
One of the most striking examples is Myan-
mar, where the authorities expect electricity
demand to double by 2018. In a bid to bolster
supply, Allen & Overy was charged with helping
to find a cost-efficient way to secure some of its
energy needs. Until now different power deals
McCormack, a Singapore-based partner.
Banks lending in Asia will often look to recent
projects in the region . . . and so these projects
will set the benchmark in Asia.
Every project is unique and so the challenge
is where to draw that line, he adds. But even
to pump $8bn into a natural gas project.
Although lawyers have been innovative in
helping to pull off challenging financing deals, it
is also true that investors are looking more
closely at projects they would formerly have
shied away from. Cristina Chang, Citis Hong
questions such as whether a politician or spouse arranging for the payment might say this bit has to had been done with a company turning up to where you have a very bespoke arrangement, Kong-based head of global structured finance
will be presentemandat the for
event. Mrin Imthe
says that, to be made. The software stay in human language and the government and saying Id like to do X, and like Central Java . . . one can draw upon the for Asia-Pacific, says institutional investors are

D
Development finance power emerging
without the app, lawyers
markets hadAsia-Pacific
of the to spend time on is program gives effect to what
region so thats not automatable, says this is what its going to cost you, says Stephen precedent and extract principles to be applied becoming an alternative source of funding for
Lawyers are being called on the phone withrising
clientssodiscussing what possible
fast that authorities often the parties have agreed and is Mr Farrell. Jaggs, managing partner of Allen & Overys on the next project. these critical projects, because they want long-
scenarios werestruggle
coveredtobysecure
the rules when theyinter- recorded. What the machine learning or AI Bangkok office. The government had no real In the Philippines, Freshfields made South- term investments where the value does not
to structure complex energy just wanted a simple
national answer
finance
the private
butneeded
were nottosure
keep But Scott Farrell, a Sydney-based partner at programs are not able to do is to take those leaps benchmark of what the cost should be. east Asias first use of European-style credit change in sync with credit cycles.
initiatives that could have what
pacetowith
ask. rising
[Theenergy
app] mightneeds.say that you can- law firm King & Wood Mallesons and a special- in jurisprudence, which courts do when they are The firm advised on a competitive tender to enhancements reassurances to the lender The scale of investors appetite for develop-
not play golf cases,
with thisit isguy, buttoyou can gotofor a ist in financial derivatives, says that there trying to respond to a very broad data set. select a bidder that would build a power plant that the chance of default is lower. The aim was ment finance is clear from the $27bn raised last
transformative effects, In some
meal, he explains.
international
falling lawyers tempt
investors to stump up funds for are still some parts of legal contracts that These make perfect sense to humans, [but] and sell energy to the government for an agreed to cushion the private sectors risk in a $225m year for a tricky Franco-Chinese-Russian liquid
writes Laura Noonan At the same
power time,
projects manyof
in some inthe
theregions
legal sector
leastare
well- the smart version cannot easily automate. they will be anomalies to machines and so thats price. But carving out a structure that bidders project bonds deal for a geothermal power national gas project. Linklaters managed to
concerned that the increased
known economies use of technology
by developing new deal Certain clauses still require the fine judgment why the human touch is so relevant because could work with was easier said than done. plant. The use of credit enhancements marked navigate complex US and EU sanctions affecting
will result in fewer
structures. Thesejobsaimfor lawyers.investors
to reassure A study by that of a human lawyer to, say, define intangible the law is about relationships, he says. Myanmar is more of a frontier market and a milestone because the regions economies and Russias participation, reassure investors on
are wary of the unfamiliar risks of countries there are particular challenges that relate to financial regulation are less developed than in logistical issues and prevailing low oil prices,
such as Myanmar, the Philippines and Indo- that, Mr Jaggs says. Allen & Overy created a Europe, where such tools were first conceived. and do it all under the added scrutiny reserved
nesia. Business of Law: Technology deal that met the standards of international There was an additional layer of complexity for a key project in Chinas One Belt One Road
Some emerging markets still do not have banks and institutions using a pioneering because the project one of the worlds largest strategy to build hundreds of billions of dollars
deep or developed enough bank and capital government guarantee for the credit risk of the geothermal power plants involved taking on of Asian infrastructure.

innovation
Originality

Rationale
Legal Expertise: Unlocking & Delivering Value (International) Legal Expertise: Protecting & Unlocking Value (Asia-Pacific headquartered) Legal Expertise: Dispute Resolution

Impact
Special achievement award

score
Total
Firm

Standout Danny Gilbert

innovation
innovation

The move fits G+Ts identity as a

Originality
Originality

Rationale
Rationale

innovation
Originality
Impact
Impact

Co-founder and managing partner, technology- and innovation-led law firm. The

Rationale
Linklaters The firms proprietary artificial intelligence software Nakhoda is being used and developed in new ways in 8 8 8 24

score
score

Total
Total

Impact
Singapore. A new use case for the tool is being developed for client DBS to automate tasks currently done by in-house
Gilbert+Tobin firms clients commendations to researchers

score
Firm FirmIt will allow the business to manage certain legal requests and automatically generate legal documents.

Total
lawyers.
Firm for the Innovative Lawyers report included as
Standout
Corrs Chambers Westgarth Developed Sara for client McDonalds to analyse and report on risks associated with new 7 8 8 23
Standout property leases and acquisitions. Using GPS it can automatically assess flood risk, potential planning restrictions and
identify types of neighbours and competitors nearby. The tool can be used onsite from a smartphone and provides
Standout The first special achievement award winner many for technology and process experts as
risk Mori Hamada
ratings & Matsumoto
and reports Working
in a consistent closely
format with
to be its client,
shared the company
with the firm developed
board.Japans first convertible equitable 8 9 8 25 in an Asia-Pacific Innovative Lawyers report for the expertise of the firms lawyers.
Freshfields Bruckhaus Deringer Following a change in Japanese private finance initiative law, the firm worked with 9 9 8 26 security, issued by Groove X and worth 1.4bn, by adapting a class of security-stock acquisition rights, to create a Yulchon The firm represented the deputy prime minister of South Korea, to uphold his sanctions against a challenge 8 8 9 25
the government to create an entirely new framework for infrastructure privatisation, enabling the privatisation of new type of financial product. It provides a new and viable alternative for start-ups to obtain financing. Commended: from Irans Bank Mellat. A similar case had been lost in the UK and EU courts against the bank. The lawyers were able has the hallmarks of an innovative leader: G+T believes success comes from
Kansai and Osaka airports by way of mega-concession. The documentation and agreements have created a new Masakazu
Yulchon Masujima.
Created LegalPad and SandBox technologies with Solomon Strategic Consulting to allow lawyers to create 9 8 6 23 to show through intricate analysis of S Korean law that the deputy PM had acted legally, providing strong support for
market standard based on international best practice, and paved the way for future public private partnerships with their own client apps automatically, removing the communication gap and time-lag between lawyers and software international efforts to contain Irans nuclear programme. ambition, continual improvement and the attracting the right people. When it comes to
international investment in Japan. Zhong Lun
developers. TheLaw
firmFirm Structuredmore
has developed a dealthan
to allow Unisplendour
20 client apps. Corporation to acquire Hewlett Packard Enterprises 7 8 8 23
51 per cent stake in H3C Technologies. This involved creating a new employee equity plan for more than 8,000 Yulchon The firms meticulous arguments nullified a new taxation model from S Koreas National Tax Service that had 7 8 9 24 ability to see opportunities that others miss. recruitment, Mr Gilberts approach is decisive
Baker McKenzie Worked with BHP Billiton, Conservation International and the International Finance Corporation to 9 8 7 24 employees which, unusually, was implemented after the deal closed. significantly raised the corporate tax payable by more than 100 Korean companies.
In 1988 Danny Gilbert left a leading rather than democratic. I make decisions on
develop the first forest bond. The bond raises funds from institutional investors to support long-term projects that
protect global biodiversity and ecosystems. The firm advised on the concept and development of the bond, as well as
Highly Commended
JunHe The firm established that the trademark rights of a dating agency were not infringed by its client, which had a 8 7 8 23 Australian law partnership to set up on his who I want to bring into partnership without
key risk mitigation provisions for investors.
Highly
Allen & Overy TheCommended
TransforMatrix add-on to the firms MarginMatrix system translates automatically drafted margin 7 7 8 22 dating-themed television programme with the same name.
documentation into Japanese standard legal documents. It allows the firm to offer its MarginMatrix service, which own with fellow lawyer Tony Tobin. From the the complex process of getting the partners
Eversheds Sutherland Bridging the gap between technology and the law, the firm negotiated key concessions and 7 8 8 23 Henryregulatory
manages Davis York The firmtoassisted
changes the Myanmar
derivatives government
margin rules, to clients in drafting
across new corporate insolvency laws - a challenge
Asia-Pacific. 6 8 8 22
obtained regulatory approval to allow Nomura, the Japanese bank, to move a significant amount of data into the Pinsent Masons The firm developed a group action model that is unusual in Hong Kong litigation to solve a dispute 8 8 7 23 outset Gilbert+Tobin had a prescient focus on board.
in a market where credit-based trade has been absent for many years and therefore lacking institutional and private between construction contractors and a government body. The model avoids 45,000 separate arbitrations and saves
cloud across its global operations. Commended: Nigel Stamp.
sector experience.
Anand and Anand KnowBot is an artificial intelligence tool that was developed internally to analyse text rapidly 8 7 7 22 the firms clients an estimated HK$40m.
for new insights into market trends, competition and for specific client matters within the firms specialist field
on the technology, communications and This has meant taking risks on lateral hires
Nishith Desai
of intellectual Associates
property. Thenow
Analyses firmsupport
designed a unique
strategic hybrid structure
decisions on client for the Mauritian
relationship entity of Madison
management, financialIndia 8 7 7 22 Sidley Austin Defended Chinas Ministry of Commerce in its appearance in a Second Circuit case in the US that 8 8 7 23 media industries and quickly built its brand, and setting a high bar for performance and
Capital to buy
management and ahiring.
portfolio of Indian companies. Lawyers designated its client as a domestic entity to buy the supported Chinese manufacturers accused of price fixing. The lawyers argument clarifies the law for foreign
Highly Commended companies, while retaining foreign investor status for tax purposes. exporters facing antitrust charges in the US and sets a cross-industry precedent that solves potential conflicts working with businesses involved in the cultural fit, which means that many lawyers
between Chinese industrial policy and US laws.
Allen & Overy Devised a new approach to appointing a common custodian for three Australian government agencies, 7 8 7 22
Gilbert + Tobin
Gilbert TheLawyers
+ Tobin SmartSearches
crafted suite of tools
a novel way toautomate searchesAtlas
help restructure for client dueAustralian
Iron, the diligence work,
miningincluding under a 7
litigation
company, 7 7 7 8 7 22 21 technology boom that accompanied the do not stay. Without using quotas, the firm
searches
scheme across court registries,
of arrangement searchesit of
and protect theshareholder
from Personal Property
action.Securities Register,
The workforce wasand identifying
saved domain name
and the companys market
achieving favourable negotiating terms, consolidation of reporting requirements and significant cost savings growth of the internet. We became known has the highest proportion of female
estimated at AU$80m in the next 10 years.
owners. The tools automatically
capitalisation increased 10-fold.
the first nine months.
generate relevant reports and documents and saved 25,000 hours and $750,000 in
Highly Commended
as a maverick firm, willing to take partners of any leading corporate law
Henry Davis York Employed deeds of company arrangement to restructure McAleese Transport Services while under 7 7 7 21 Shin & Kim Represented legal service LawnB, successfully arguing that deemed consent was given to the use of an 7 7 8 22
Slaughter and May Devised and executed a complex derisking process, recapitalisation and reorganisation to enable 7 8 7 22 voluntary administration. Viable parts of the business could resume operations quickly and retain confidence. individuals personal details when that information was already in the public domain. chances, and aggressive in firm in Australia.
Tenaga Nasional Berhads $300m investment in GMR Energy. The approach is a template for foreign investors looking
to acquire a foothold in Indias indebted energy market. Commended recruiting talent and clients, Mr Gilbert has a strong
Atsumi & Sakai Orchestrated the settlement over security fraud at Olympus, recovering the highest amount of 7 7 7 21
Commended
Corrs Chambers Westgarth Partnered with Elevate to develop the firms process for verification (verifying individual 8 7 6 21 money achieved by non-Japanese institutional investors relative to the amount of their claims. says Mr Gilbert. commitment to social justice,
White & Case, Ashurst, Kirkland & Ellis The firms navigated complex regulatory requirements and existing financial 7 7 8 22 statements in public documents) into the Cael Verify software. The tool manages the traditionally manual process,
arrangements to enable Studio City, the Macau entertainment resort, to refinance its debt through a first-of-a-kind assigning
J.Sagar responsibilities, tracking
Associates Advised onprogress and
the sale of collating
Sistema evidence
Shyam in a database
TeleServices to cut
telecom time taken
wireless by up
business to to 40 per
Rcom. In the 7 7 6 20 Dechert The firm tried a number of firsts in the long-running Daimler-Leiduck litigation case, with Kareena Teh taking 6 7 8 21 In 2002, the firm changed relating in particular to
structure for an Asian corporate entity. The refinancing was largely done through the high-yield bond market, cent.
first major consolidation in the Indian telecoms industry since 2009, and the first under new merger guidelines, a lead role as Daimler executives involved in the initial proceedings left the company. The case has influenced civil
establishing this as a viable alternative in the region. lawyers won regulatory approvals under intense scrutiny. court procedures in Hong Kong. strategy to focus on high-end indigenous Australians. On
Gilbert + Tobin A process mapping exercise led to the development of the firms patented Verification software. It 8 7 6 21 corporate work and has Australias bicentenary of
JunHe Through
automates the processtwoforconsecutive transactions,
the verification of initial the firmoffering
public helped prospectuses,
Lafarge-Holcim streamline
replacing theoperations in China. The
lawyers traditional 7 7 6 20 Shardul Amarchand Mangaldas & Co The firm stepped in to lead and execute strategy for Tata in the replacement 6 7 8 21
Commended first
tools transaction
of pencil,
its kind
human
ruler transferred
inwhile
error
and eraser. its
China,working
followed
Thecontrolling
by the
within
streamlined
transfer
tight
stake in Sichuan
verification Shuangma
process Cement
allows toto
the firm
of unlisted cement assets to Huaxin Cement.
IPO timelines.
private
reduceequity
costsinvestors, theoffirst of
and the risk of its executive chairman, Cyrus Mistry, and also helped to remove him as director and chairman of several listed Tata
companies.
established itself in the top colonial settlement, and the
Allen & Overy Advised Advent International and its portfolio company Allnex in the NZ1.8bn acquisition of Nuplex, the 7 7 7 21
tier of corporate law firms in weekend before opening the
7 7 7 7 7 6 21 20
coating company, through a breakthrough scheme of arrangement. The transaction has set the market standard for Zhong Lun Law Firm Developed new liquidity and due diligence solutions for the first non-performing asset Australia. G+T office nearly 30 years ago,
acquisitions through this structure in New Zealand.
Norton Rose Fulbright The firm developed Leasing Platform to help clients manage their property portfolios. It
securitisations in 2016 under a Chinese pilot programme. Deals included the first non-performing credit card
combines tools to manage workflow, document automation, and electronic signing, and gives clients direct access to
Commended
securitisation programme in the world. Commended: Liu Borong. More recently, lawyers have seen Mr Gilbert marched in the Australia
live lease information, agreements and reports.
Baker McKenzie The firm persuaded the Shanghai intellectual property court to accept a trade secrets case on behalf 6 7 7 20
Berwin Leighton Paisner Advised on reforms to and implementation of new rules regarding the Myanmar 6 8 7 21 of a big pharmaceutical company, producing evidence in an easy-to-understand way and saving the clients millions. co-working spaces spring up across the Day protest to help draw attention to
6 7 7 6 7 6 20 19
Fangda Partners Persuaded Swiss regulators that China National Chemical Corporation and its subsidiaries did not
Companies Act and Myanmar Investment Law. The firm has helped to redraft existing law and provisions and lead King & Wood Mallesons Built the NDA Digital Advisor tool for client AMP to automate the production of high-volume
act in concert with the Peoples Republic of China or other State-Owned Enterprises in connection with the potential
capacity building efforts to support Myanmars transition into a modern economy. Commended: Christopher Hughes. and repetitive non-disclosure agreements. Its development is part of a broader strategy to help the firms lawyers
takeover of Syngenta. MinterEllison The firm acted for the Australian Tax Office on the Chevron transfer pricing case, which examined how 8 6 6 20
world to cater for T-shirt wearing freelancers, indigenous rights. Since then he has offered
become more familiar with using automation tools and to help clients use new technology.
the arms length principle, which underpins international transfer pricing rules in many advanced economies, should tech start-ups and workers in the creative support and services to indigenous peoples.
Skadden, Arps, Slate, Meagher & Flom The firm adapted the concert party agreement, an approach usually used 7 7 7 21 King & Wood Mallesons In an industry first, the firm produced a collateral memorandum for the International Swaps 6 7 6 19 be applied to debt arrangements within the same corporate group.
in a takeover to bind unconnected parties, in software company Meitus $4.6bn initial public offering in Hong Kong. and Derivatives Association in China to clarify Peoples Republic of China law for foreign investors. sectors. But seeing that G+T could similarly He has also continued to lend time and
This binds the chairman and CEO of the company as the controlling shareholder, satisfying HK Stock Exchange policy AWARD SUPPORTED BY Orrick, Herrington & Sutcliffe Used the Foreign Sovereign Immunities Act and alter ego law to have China National 6 7 7 20 benefit from collaborative workspaces, Mr finances to a range of organisations,
regarding Peoples Republic of China control criteria. Trilegal Acting for 30 lenders on the restructure of HCC, the construction company, the lawyers created the first 6 7 6 19 Building Materials (CNBM), a Chinese state-owned enterprise, dismissed from a products liability case pending since
documents to implement the S4A debt restructuring scheme in India, paving the way for future transactions. 2009. The case helped to establish the boundaries of sovereign liability.
Ashurst Acting for Australian National University, the firm structured a deal to enable the privatisation of 7 7 6 20
Gilbert relocated its headquarters to open- scholarships and initiatives.
student accommodation without an occupancy guarantee. The structure ensures affordability for students without Zhong Lun Law Firm Overturned Nestle Chinas fines for ending customers sales contracts after a website 6 7 7 20 plan offices in Barangaroo, Sydney. Yasmin Lambert
compromising investor protections.
Trilegal Transferred Paytm, a cashless mobile wallet with more than 150m users, from One97 Communications to 6 7 6 19
Payment Bank. Lawyers developed a deal structure to meet the needs of both companies. malfunction gave them extra discounts that cost the company around RMB30m in three hours.
FINANCIAL TIMES Friday 2 June 2017
Programmed for more disruption
Technology Opportunities
to replace lawyers with
software abound, from
smart contracts to apps,
writes Jane Croft
I
t sometimes seems that the practice of law
is resistant to the kinds of technological
disruption that are under way in other
sectors from the travel industry to taxi
driving. The Uberisation of the legal pro-
fession is still some way down the road.
Yet, when Sundaresh Menon, chief justice of
Singapores Supreme Court, spoke about the
effect of technology in January, he said: A day
of reckoning can no longer be put off, because
dramatic developments will force us to rethink
entire areas of practice.
He acknowledged that there are reasons why
law has been slow to change. Technology was
unable until recently to be meaningfully
applied to our work, while lawyers naturally
resist change perhaps an inevitable charac-
teristic of a profession whose function is to
uphold an enduring and stable system of rules.
Yet law firms are increasingly interested in
the potential for technology to help them offer a
better service to clients. An app that tells South
Korean civil servants if they can meet contacts
for lunch without breaking the law, and a
program that cuts much of the boring bits of
processing standard documents are just two
examples.
Law firms in Asia are starting to use technol-
ogy to automate routine work. Sometimes the
know-how may have been developed in-house,
as at South Korean law firm Yulchon; at other
times, it is provided by nimble start-ups.
Although law has for years been considered
too complex to be disrupted by technology, in
many cases the legal tasks can be broken down
into smaller pieces of work that can then be
automated, particularly if the work is low risk
and high volume.
An area that is ripe for such a move is non-
disclosure agreements (NDAs), which are confi-
dentiality contracts that ensure two parties
Contributors
Don Weinland Jamie Smyth
Asia financial Australia correspondent
correspondent
Reena SenGupta,
Michael Peel Yasmin Lambert
Bangkok correspondent RSG Consulting
Jennifer Hughes John Bradley
Asia capital markets Graphic artist
editor
Harriet Arnold
Laura Noonan Commissioning editor
Investment banking
corresponent Steven Bird
Designer
Jane Croft
Law courts correspondent Alan Knox
Picture editor
Loading smartphone snaps of deals was a Linklaters client suggestion Getty Images/Hero Images
keep information secret if it has been
exchanged in a business relationship. These
usually low-risk agreements create a burden for
busy in-house legal departments because
multinationals every day generate large
volumes of NDAs that must be checked before a
new customer relationship can continue or a
financial transaction takes place.
Law firm Linklaters has been working with a
software company, Eigen Technologies, to
develop Nakhoda, an artificial intelligence (AI)
program that uses natural language processing,
in which computers can recognise and respond
to human language to read text contracts and
documents such as NDAs.
A typical in-house legal team will spend a lot
of time going through unexciting documents
like NDAs, says Sophie Mathur, partner and
global co-head of innovation in Linklaters
Singapore office.
She says the impetus for developing the
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FTReports | 17
Asia-Pacific Innovative Lawyers
program came from client Chee Kin Lam, who is
general counsel at DBS Bank in Singapore. He
suggested that DBS bankers visiting customers
in the field should be able to take a smartphone
photograph of an NDA, which could be up-
loaded straightaway into Nakhoda.
The input from DBS helped Linklaters to
harness technology to solve a client problem, by
gaining an understanding of some of the pain
points in the banks operational processes.
We had this tool, but we were not living and
breathing his problem, Ms Mathur says of Mr
Lams input. This was his idea. Customers can
tell us what their pain points are and we can fig-
ure out how we can use the solutions.
As Ms Mathur points out, technology can help
ease the workload for in-house legal teams:
Everyone has more compliance and is under
pressure to deliver more with fewer resources.
Technology is one of the levers you can pull.
While some law firms opt for collaboration
with tech start-ups, others choose to hire
experts to help them develop technology in-
house.
South Korean law firm Yulchon brought in
Carl Im, who holds a doctorate in theoretical
Continued on page 18
Business of Law: New Products & Services
innovation
Originality
Rationale
Impact
score
Total
Firm
Standout
Gilbert + Tobin A holistic service draws on various operational teams to assist client Boral to redesign its in-house 7 8 8 23
legal processes and implement new technology. Increasingly offering more than pure legal advice, the firms
technology and operations experts help a range of clients to work more efficiently and to innovate.
Highly Commended
Nishith Desai Associates Set up a strategic consulting practice to help in-house lawyers play a greater role in 8 8 5 21
strategic decision making for their businesses. The firm is helping in-house lawyers become more proactive in how
they use the law to help their companies gain competitive advantage.
Pinsent Masons Through its Infrastructure Academy training programme, developed with Hyundai, the firm helps 7 7 7 21
legal and commercial staff from the business to work on live project challenges and develop new solutions.
Commended
Morrison & Foerster Draws on the firms San Francisco-based forensic accounting team to give clients an advantage 6 6 8 20
in post-closing disputes over purchase prices in mergers and acquisitions in Japan.
Rajah & Tann Singapore A new service combines legal, security and forensics experts to help clients prepare for and 6 7 7 20
respond to data breaches. The firms experts also act as external data protection officers for clients, a role recently
required under Singaporean law.
Simpson Grierson New services from the firms Health & Safety Consultancy include workshops and SchoolSafe, a 7 7 6 20
consulting and online hosting service to manage policies, procedures and incident logs for schools.
AWARD SUPPORTED BY
18 | FTReports
Asia-Pacific Innovative Lawyers
Programmed Continued from page 16
physics from Stanford University and once
worked as a derivatives trader at Goldman
for disruption Sachs, as a senior adviser. He now helps Yulchon
develop technology that provides low-cost com-
pliance tools, including apps, for clients. The
firm is also encouraging its lawyers to create
new solutions themselves.
One application focuses on a new anti-
corruption law in South Korea. Introduced last
September, it covers an estimated 4m civil serv-
ants, schoolteachers and journalists and limits
the value of meals and gifts to which they can be
treated by their contacts.
Yulchon has developed an app with 3.7m or so
anti-corruption scenarios and a list of the
41,000 South Korean entities whose employees
are covered by the new rules.
Clients seeking guidance about a forthcoming
situation can feed in details and ask questions
using a chatbot. In the case of corporate
hospitality, for example, this might involve
questions such as whether a politician or spouse
will be present at the event. Mr Im says that,
without the app, lawyers had to spend time on
the phone with clients discussing what possible
scenarios were covered by the rules when they
just wanted a simple answer but were not sure
what to ask. [The app] might say that you can-
not play golf with this guy, but you can go for a
meal, he explains.
At the same time, many in the legal sector are
concerned that the increased use of technology
will result in fewer jobs for lawyers. A study by
FINANCIAL TIMES Friday 2 June 2017
Deloitte, the professional services firm, in 2016
predicted that 114,000 jobs in the legal sector in
the UK alone are likely to be automated within
concepts such as good faith, he says.
His firm has developed smart contracts and
he observes that these digital and analogue
20 years. It points out that computers now out-
perform paralegals and junior lawyers in
reviewing documents.
contracts are a blend of computer code and of
human discretion that can kick in as a safety
valve, during a financial crisis for example. In
In future, predict some lawyers, more con- the case of smart contracts, Mr Farrell says,
tracts might be composed not just in human parts of some financial markets agreements are
language but in computer code, particularly in totally mathematical such as when the
areas such as complex financial derivatives price of a derivative can be adjusted by sub-
where many legal agreements already con- tracting one number from another which can
tain pages of mathematical formu- be written in computer code.
las. Where it starts to get tricky,
These are dubbed smart however, is if the legal contract
contracts because they can specifies concepts such as
execute part of their func- stating that a price must
tions themselves through be determined in a com-
software programs, mercially reasonable
including automatically manner or in good
calculating the pay- faith.
ments due in a deriva- Thats not mathemati-
tives contract and then cally representable, so we
arranging for the payment might say this bit has to
to be made. The software stay in human language and
program gives effect to what so thats not automatable, says
the parties have agreed and is Mr Farrell.
recorded. What the machine learning or AI
But Scott Farrell, a Sydney-based partner at programs are not able to do is to take those leaps
law firm King & Wood Mallesons and a special- in jurisprudence, which courts do when they are
ist in financial derivatives, says that there trying to respond to a very broad data set.
are still some parts of legal contracts that These make perfect sense to humans, [but]
the smart version cannot easily automate. they will be anomalies to machines and so thats
Certain clauses still require the fine judgment why the human touch is so relevant because
of a human lawyer to, say, define intangible the law is about relationships, he says.
Business of Law: Technology
innovation
Originality
Rationale
Impact
score
Total
Firm
Standout
Linklaters The firms proprietary artificial intelligence software Nakhoda is being used and developed in new ways in 8 8 8 24
Singapore. A new use case for the tool is being developed for client DBS to automate tasks currently done by in-house
lawyers. It will allow the business to manage certain legal requests and automatically generate legal documents.
Corrs Chambers Westgarth Developed Sara for client McDonalds to analyse and report on risks associated with new 7 8 8 23
property leases and acquisitions. Using GPS it can automatically assess flood risk, potential planning restrictions and
identify types of neighbours and competitors nearby. The tool can be used onsite from a smartphone and provides
risk ratings and reports in a consistent format to be shared with the company board.
Yulchon Created LegalPad and SandBox technologies with Solomon Strategic Consulting to allow lawyers to create 9 8 6 23
their own client apps automatically, removing the communication gap and time-lag between lawyers and software
developers. The firm has developed more than 20 client apps.
Highly Commended
Allen & Overy The TransforMatrix add-on to the firms MarginMatrix system translates automatically drafted margin 7 7 8 22
documentation into Japanese standard legal documents. It allows the firm to offer its MarginMatrix service, which
manages regulatory changes to derivatives margin rules, to clients across Asia-Pacific.
Anand and Anand KnowBot is an artificial intelligence tool that was developed internally to analyse text rapidly 8 7 7 22
for new insights into market trends, competition and for specific client matters within the firms specialist field
of intellectual property. Analyses now support strategic decisions on client relationship management, financial
management and hiring.
Gilbert + Tobin The SmartSearches suite of tools automate searches for client due diligence work, including litigation 7 7 8 22
searches across court registries, searches of the Personal Property Securities Register, and identifying domain name
owners. The tools automatically generate relevant reports and documents and saved 25,000 hours and $750,000 in
the first nine months.
Commended
Corrs Chambers Westgarth Partnered with Elevate to develop the firms process for verification (verifying individual 8 7 6 21
statements in public documents) into the Cael Verify software. The tool manages the traditionally manual process,
assigning responsibilities, tracking progress and collating evidence in a database to cut time taken by up to 40 per
cent.
Gilbert + Tobin A process mapping exercise led to the development of the firms patented Verification software. It 8 7 6 21
automates the process for the verification of initial public offering prospectuses, replacing the lawyers traditional
tools of pencil, ruler and eraser. The streamlined verification process allows the firm to reduce costs and the risk of
human error while working within tight IPO timelines.
Norton Rose Fulbright The firm developed Leasing Platform to help clients manage their property portfolios. It 7 7 7 21
combines tools to manage workflow, document automation, and electronic signing, and gives clients direct access to
live lease information, agreements and reports.
King & Wood Mallesons Built the NDA Digital Advisor tool for client AMP to automate the production of high-volume 6 7 7 20
and repetitive non-disclosure agreements. Its development is part of a broader strategy to help the firms lawyers
become more familiar with using automation tools and to help clients use new technology.
AWARD SUPPORTED BY
FINANCIAL TIMES Friday 2 June 2017 FTReports | 19
20 | FTReports FINANCIAL TIMES Friday 2 June 2017

Asia-Pacific Innovative Lawyers

Australia up from Down Under

L
Expansion earning how to code is becoming a attempt to outpace rivals at home and, increas- i n n ov a t i n g t o s t a y o n t o p o f t h e
normal part of the job for lawyers at ingly, in the wider region and beyond. competition, says Mr Gilbert, who cites G+Ts
Fierce competition has Gilbert + Tobin, the Sydney-based In G+Ts case, the firm has developed soft- egalitarian culture and communication as key
made Australian firms corporate law firm. The idea is that
by acquiring this skill, lawyers will
ware tools that streamline and automate some
of the most time-consuming and repetitive legal
strengths.
Many Australian law firms are emerging as
inventive at home and become more tech-literate and will develop a tasks related to corporate transactions, includ- some of the most innovative in the Asia-Pacific
ambitious overseas, writes feel for how technology can help them work
more efficiently.
ing searching databases and verifying docu-
mentation. Last year it patented some of these
region and arguably ahead of leading US and UK
firms. Not only are these Australian trail blazers
Jamie Smyth This has caused controversy, says Sam innovations and it has begun sharing its know- embracing the latest developments in technol-
Nickless, G+Ts chief operating officer. Some how with clients. ogy but they are reforming traditional work
people from other law firms have criticised our In February G+T lawyers took part in a hack- practices.
coding programme, saying its ridiculous to athon with Westpac Banking Corporation to MinterEllison, another law firm based in
teach lawyers to code. develop and test inventive responses to legal Sydney, is providing opportunities for lawyers
But this misses the point. This isnt designed challenges identified by the banks in-house seeking work on a contractual and temporary
to teach lawyers to be coders but to help them counsel. This enables us to charge clients less basis. Last year it set up MinterEllison Flex,
understand the power of coding, inspire them for our overall work and it frees up lawyers from which enables clients to hire contract lawyers to
with ideas and enable them to ask our tech time-consuming tasks, says Mr Nickless, as he work in-house to boost their own legal capacity.
experts to work on projects. pulls out his mobile phone to demonstrate Australian law firms have always been
G+T is also sponsoring a new course at the G+Ts Smart Counsel app, which provides tips forced to be more efficient and innovative than
University of New South Wales, which gives law and draft clauses for corporate legal teams. their international counterparts because there
students practical experience of the latest legal Mr Nickless is sitting beside Danny Gilbert, are a lot of large firms in a market which is not
technology and systems. co-founder and managing partner of G+T, in that deep, says John Denton, chief executive at
Australia is one of the worlds most competi- the firms new offices in Sydneys high rise Corrs Chambers Westgarth. [Also] the Aus-
tive legal markets, with lots of lawyers in a Barangaroo, with stunning views of the citys tralian market has typically been a place where
limited domestic economy. This has spurred harbour skyline. G+T has worked hard to chal- global law firms want to have a footprint.
legal practitioners to embrace new technology, lenge Australias longer established law firms In recent years there has been a rash of
business practices and ways of working in an such as 150-year-old Allens. We need to keep Continued on page 22

Business of Law: Knowledge, Data & Intelligence The power

of coding:
Sam
Nickless,
G+Ts chief
operating
innovation
Originality

officer
Rationale

Impact

James Horan for the

score
Total

Firm FT

Standout
King & Wood Mallesons Published an open source DnA (Digital and Analogue) architecture for smart contracts, 9 9 6 24
which blends human and machine languages, or law and code. The initiative is a prototype to demonstrate how law
should be integrated with blockchain or other self-executing contract code to ensure human judgment comes into
play in unexpected or unusual circumstances.

Anand and Anand Predictive analytics helps analyse and better understand the firms client relationships. Data 9 8 6 23
drawn from a range of financial and communications systems are used to predict client behaviour and guide client
relationship priorities.

JunHe Developed the Lvxie app for thousands of lawyers, clients, judges, prosecutors and academics in China to 8 9 6 23
communicate and share knowledge and experience. The app also facilitates referrals between the firms new alliance
of local Chinese law firms.

Highly Commended
MinterEllison ME Taskflow was developed internally to manage high-volume and repeatable work. It is now used 7 8 7 22
to manage 35 per cent of the firms matters and guides lawyers through tasks while providing access to know-how,
precedents and tools to generate legal documents and emails automatically.

Norton Rose Fulbright Built an online, searchable risk allocation tool for the G20s Global Infrastructure Hub. It 6 7 9 22
provides guides and benchmarks which will help governments in emerging markets develop new infrastructure
projects.

Herbert Smith Freehills A more data-driven approach to budgeting gives clients greater certainty over costs in 7 7 7 21
disputes. The firm combines detailed pricing of each phase of the dispute with ongoing analysis to predict costs more
accurately.

Commended
Dechert A legal analysis showed that an investment treaty claim against the Indonesian government could be made 6 8 6 20
in relation to toxic haze from forest fires in 2015. It was used by non-governmental organisations and others to put
pressure on the Indonesian government and raise awareness.

Paul Hastings A collaborative knowledge management system that uses document automation, and connects 6 7 6 19
lawyers to external information resources. Developed in Hong Kong, it is being rolled out across the firm.

Gilbert + Tobin The Smart Counsel App provides user-friendly answers to in-house counsels most frequently asked 5 6 7 18
legal questions. It links to a legal document execution tool and includes online courses for continuing professional
development.

Linklaters A Singaporean forum for in-house lawyers responsible for innovation is fostering new collaborations on 5 7 6 18
subjects such as cloud computing.

Trilegal A review of new maternity benefits law in India examined the connection between employee friendly 6 6 6 18
maternity benefits and employee retention, and has helped to change attitudes within the Indian IT industry.

AWARD SUPPORTED BY
FINANCIAL TIMES Friday 2 June 2017 FTReports | 21
22 | FTReports FINANCIAL TIMES Friday 2 June 2017

Asia-Pacific Innovative Lawyers

Australia
up from
Down Under
Continued from page 20
mergers between Australian firms and UK
counterparts, such as the takeover by the UKs
Ashurst of Blake Dawson in 2012 and the combi-
nation of Australias Freehills and the UKs Her-
bert Smith also in 2012. Other big international
law firms, such as White & Case, have set out to
poach local staff from Australian rivals to estab-
lish a presence Down Under.
Australian law firms are in a competitive
market, not only among each other, but with
Singapore and Hong Kong for the Asian
market, says John Flood, professor of law at
Griffith University in Queensland. This is why
a number of them have linked with London
firms as they dont have the substantial corpo-
rate and banking bases that New York and Room to think: Corrs has introduced open plan offices in its Australianoffices to encourage collaboration and teamwork
London do.
One of the first big international mergers was to reform traditional work practices and ment bank Moelis & Co as its chief executive.
between the Australian firm Mallesons, and embrace change. Corrs has introduced com- Nevertheless, the smaller size of Australias
Chinas King & Wood in 2012. Its subsequent pletely open plan offices for its 600 lawyers in law firms none is among the global top 20
expansion into Europe was ill-fated. But for its Australia offices to increase collaboration, Helping clients to see around enables them to be nimbler than larger US and
other firms, any concerns that the Australians encourage teamwork between different parts of UK traditional rivals or the big professional
would become subservient to global partners the firm and enable more flexible-working corners often requires in-person services firms. They are embracing innovation
proved wide of the mark. Ashurst and Herbert opportunities. By focusing on more flexibility contact and being part of the and getting closer to clients to better under-
Smith Freehills, for example, are both led by we have been able to attract and retain more stand what they need and what extra services
partners from the Australian firms Paul women, says Mr Denton. conversation on the ground they can offer them, says Mr North.
Jenkins and Mark Rigotti respectively. Mr Jen- The drive for innovation and efficiency is
kins, managing partner at Ashurst, remains causing traditional boundaries between legal
based in Australia. and professional services firms to break down,
Mr Denton, chief executive at Corrs, is also co- which presents opportunities for law firms but
Business of Law: Managing & Developing Talent
chair of the finance and infrastructure task also threats from new entrants to the sector.
force of the B20, a business group that meets Justin North, founder and director of Janders
alongside the political leaders of G20 nations. Dean, a consultancy that advises the legal in-

innovation
Originality

Rationale

Impact
He notes that while lawyers must grasp technol- dustry, says the Big Four accountancy firms

ogy, he continues to spend a lot of time on a
plane to meet clients and represent the firm
overseas. While technology has certainly
brought about an incredible amount of efficien-
cies, helping clients to see around corners often
requires in-person contact and being part of the
conversation on the ground, he says.
Fierce competition between firms has made
attracting and retaining the best legal talent
critically important, and prompted many firms
score
Total
pose some of the greatest competitive threats to Firm
law firms. It is not just [the Big Fours] head-
count growth that should concern traditional Standout
law firms, but also the scope of legal capabilities, JunHe Moved more than 80 per cent of the partnership from performance-based compensation to a modified 7 9 8 24
lockstep version by allowing partners to opt in voluntarily. Partners can choose to pool the remuneration they
from tax disputes to M&A, and their depth of receive to be redistributed according to the new system, which compensates partners based on both seniority and
performance. It has transformed the partnerships culture, and paved the way for closer management of practices and
alternative offerings and consulting approach. teams.
MinterEllison has responded by turning the
tables. In 2014 it chose a non-lawyer Tony Highly Commended
Harrington, a former head of consultancy firm Bird & Bird The GC for a Day scheme offers six students from top Australian universities the chance to experience a 9 8 6 23
PwC Australia and managing partner at invest- day in the life of an in-house lawyer. It has built the firms profile, deepened client relationships, and raised awareness
of in-house legal career paths.

King & Wood Mallesons Project Contribution removes fixed billable hour targets and utilisation metrics for assessing 7 8 8 23
lawyers performance. Some 22 per cent of the firms lawyers in Australia are now measured against a wide range of
Law Firms in Australia tailored priorities including client development, innovation activities, and research and development time.

Commended
Baker McKenzie Implemented bAgile, a global programme to improve access to flexible and agile work 7 8 6 21
arrangements. The initiative accommodates cultural and working practice differences across Asia-Pacific while
ensuring a consistent approach across the firm.

Business of Legal Social Total Ashurst New technology, processes and a dedicated work allocation manager have been implemented to more 6 7 7 20
Rank Law firm or organisation Law Expertise Responsibility Score efficiently and fairly distribute work across the firms offices within Australia, and increasingly between Australian and
overseas offices.
1 Gilbert + Tobin 84 66 0 150
2 MinterEllison 45 64 21 130 Trilegal The TMT10% initiative allows lawyers to spend 10 per cent of their time understanding new and evolving 6 7 7 20
areas of technology. Research developed in the programme has allowed the firm to build its expertise and contribute
3 Corrs Chambers Westgarth 86 0 24 110 to national policy.

4 Norton Rose Fulbright 39 21 22 82 Herbert Smith Freehills As part of a comprehensive diversity and inclusion programme, a special focus on 6 6 7 19
multicultural diversity has seen the firm promote more local lawyers in Asia-Pacific.
5 Ashurst 39 41 0 80
6 King & Wood Mallesons 67 0 0 67 Mayer Brown JSM A workshop for senior associates run with the NYU Stern School of Business trains lawyers to 6 7 6 19
make better decisions about risk, and to better understand risk within clients businesses.
7 Henry Davis York 0 43 23 66
8 Allen & Overy 0 43 0 43 Nishith Desai Associates Developed a mobile application to match available resources in the firm with under 7 7 5 19
resourced projects. It helps to decentralise work allocation, allowing lawyers to request resources and bid for work
9 Baker McKenzie 0 24 0 24 directly.

10 Herbert Smith Freehills 0 22 0 21 DFDL A new career development framework ensures lawyers develop a broad range of legal, business and leadership 6 6 6 18
skills as they progress at the firm.
Scores are for all ranked submissions led from an Australian office of the law firm
FINANCIAL TIMES Friday 2 June 2017 FTReports | 23
24 | FTReports FINANCIAL TIMES Friday 2 June 2017
FINANCIAL TIMES Friday 2 June 2017
Legal teams technology pioneers
In-house Many company
lawyers are already in the
grip of fundamental change
led by technology,
writes Yasmin Lambert
W
hile law firms are planning for
their own roles to be trans-
formed by technology, those
changes are already taking hold
in their clients legal teams.
Our customers are changing, and the whole
business is changing, so legal also needs to
change, says Rebecca Lim, general counsel at
Westpac, the Australian banking group.
Some industries are feeling the pressure more
acutely than others. The top four in-house
teams in this years Financial Times Asia-Pacific
Innovative Lawyers report (see page 18) are
drawn from financial services and ecommerce
businesses where technology is having a dra-
matic impact.
Technology is changing faster than the law
Compliance
challenge:
and regulatory guidance in many cases. Much of
the legislation covering banks, for example, was
societys use passed before recent technological innovations
of tech often
changes
in the sector were even dreamt of. For instance,
many customers now bank exclusively online
faster than and they expect the bank to connect the data it
the law holds on them in order to provide a seamless
Getty Images
service.
In response, Westpac plans to expand its
legal, secretariat and compliance team over the
year to around 300 people. In doing so, Ms Lim
is bringing in new skills by hiring recruits who
have not necessarily followed the traditional
law firm career path.
Those who can combine the law and technol-
ogy are in demand, as are those with experience
in new crossover industries such as fintech and
now regtech regulation technology which
is designed to help companies compliance
teams. The bank is also improving the technol-
ogy skills of existing lawyers, including teaching
some of them to code.
The Lazada Group, one of the leading tech
start-ups in the region, has changed at an even
more rapid pace. Started by entrepreneurs
in 2012, the Singapore-based ecommerce
FTReports | 25
Asia-Pacific Innovative Lawyers
company has expanded into six countries,
employs more than 6,000 staff, and has
changed its business model to become a mar-
ketplace for third-party sellers. In 2016, Ali-
baba, the Chinese ecommerce group, took a
controlling stake in Lazada.
Jinesh Lalwani, who leads Lazada Singapores
legal team, says: Because of the nature of our
business, it doesnt work to have specialists, as
every quarter we move into a new business. For
example, last year we only sold physical prod-
ucts, whereas this year we have moved into dig-
ital goods.
The lawyers jobs are made even more com-
plex because the companys operations cover
Southeast Asias vastly differing legal systems,
governments, and six languages.
Adaptability and use of technology are essen-
tial to help the business scale up quickly. An
It doesnt work to electronic contracting process developed by the
Lazada legal team, for example, allows the busi-
have specialists, ness to sign up between 200 and 250 new sellers
because every a month in Singapore, which reduces the hours
required from the sales team and lawyers.
quarter we move A computer science intern is helping to
into a new business Continued on page 26
26 | FTReports
Asia-Pacific Innovative Lawyers
Innovative general counsel
Individual winner
Naosuke Fujita
Managing director
and general counsel,
Goldman Sachs
Japan
When a colleague
came out as gay in 2015, it inspired Mr Fujita
to help promote LGBT rights and awareness
in Japan. He spearheaded a campaign to
educate Japanese law firms, motivating many
to modify their policies, and has translated
US legal precedents to support a petition in
favour of same-sex marriage.
Rein Graat
General counsel
Asia-Pacific,
managing
director, ING
Singapore
Years of managing
strategic planning, change management,
innovation and sales at ING gave Mr Graat a
fresh perspective when he returned to a legal
role in 2015. Since then, he has raised the
profile of the Asia-Pacific legal team within
the business and made it a driving force for
innovation, both regionally and globally.
Legal teams technology
pioneers
Continued from page 24
develop new tools as well as automating further
aspects of the lawyers work.
Artificial intelligence and automation are
becoming an important part of the in-house
lawyers toolkit but, as Westpacs Ms Lim points
out, all those tools come to full use only if you
have a team with a culture to embrace change.
Chee Kin Lam, general counsel at DBS Bank
in Singapore, is leading a programme to make
legal and compliance joyful for lawyers and
customers alike. Technology is central to this.
The legal team is introducing an AI tool to auto-
mate negotiations over certain legal documents,
which should reduce the time required by 20-50
per cent.
But Mr Lam says that the initiative is
not AI for the sake of AI. All artifi-
cial intelligence projects must
start with process simplification,
and must be about changing
customer and client lives.
Cultural change is one of the
three pillars in Rein Graats pro-
gramme for innovation at ING,
the Netherlands-based banking
group. Mr Graat moved from Europe to
Singapore less than two years ago to take on
the role of Asia-Pacific general counsel for the
bank. He previously headed strategy and sales
divisions within the bank, and so had different
expectations of how lawyers can work.
Mr Graat says he is now particularly focused
on measuring emotional intelligence. Its
all about how we empower our lawyers and
FINANCIAL TIMES Friday 2 June 2017
Innovative In-house Legal Teams
Rebecca Lim
Chief compliance
Number of
officer and group Legal team Lawyers Total
general counsel, Organisation headquarters (Asia-Pacific) score
Westpac Australia
Ms Lim has overseen Standout
the transformation of Westpac The in-house legal teams internal transformation office and its technology and Australia 150 35
digital team are helping to radically redesign how the group operates and how its
the legal and compliance team to support the lawyers work. They are experimenting with automation tools, artificial intelligence
and chatbots, and helping the business to self-serve more routine legal requests.
banks move into digital business, recruiting Supporting the changes are a range of cultural and human resources initiatives,
including hiring and training people skilled in both law and technology.
talent with a background in financial and
regulatory technology, and training lawyers ING (Asia-Pacific A re-energised Asia-Pacific legal team has changed its organisational structure, Singapore 30 33
legal team) technology and culture to become more open, collaborative and agile. It is
to code. Ms Lim plays an influential role on launching an offshore legal centre, piloting uses of artificial intelligence, and has
diversity issues, encouraging more women created a network to promote innovation in the industry.
and Asian staff to take on leadership roles. DBS Bank With an ambition to make legal and compliance enjoyable, the team has focused Singapore 80 32
on improving customer experience for the bank. It has simplified procedures,
contract templates and compliance documents and is experimenting with a natural
Padmini Vora language processing tool to reduce dramatically the time needed to turn round
legal documents.
Executive
vice-president and Lazada The ecommerce company brings the businesss technology-focused, start-up Singapore 30 32
general counsel, mentality to its young and lean legal team. It looks at what can be automated,
improved with technology or outsourced for greatest efficiency.
TransUnion Cibil
India
Ms Vora has Highly Commended
introduced a range of processes and Boral To support the construction companys transformation over the past five years, the Australia 11 31
legal team has increased its influence and standing with regulators, and redesigned
technology to streamline legal activities at legal processes. It has led on the introduction of new technologies, which will be
shared with other areas of the business.
TransUnion Cibil, the largest credit
information bureau in India. She challenged Global Lawyers are guiding the organisation established by the G20 to fulfil an ambitious Australia 2 31
Infrastructure Hub set of mandates to promote greater infrastructure development and private sector
the courts jurisdiction to hear claims against investment in projects. They have created new reports and tools, including one to
help governments and private investors manage risk allocation.
the company and is leading efforts to update
Indian laws on credit information companies.
Japan Tobacco A cultural change programme has helped lawyers think like entrepreneurs and Japan 20 31
International business professionals. Putting these skills into practice, lawyers designed a
product that is scheduled to launch soon. The legal team also ran a two-day summit
with outside law firms to help improve relationships, understanding and quality
of work.
Sequoia Capital A document management system and other technologies introduced by the India 3 31
India legal team are changing the way the venture capital firm manages its portfolio
companies in India. The systems provide a valuable new stream of data on business
trends, issues, regulatory compliance and risks.
Citibank, India Under a new general counsel, the legal team has established a global legal India 36 30
services hub for the bank in India. Lawyers have led initiatives to encourage women
into leadership positions and placed a new focus on equal opportunities for people
with disabilities.
IAG Used design thinking workshops to build customer empathy and develop ideas Australia 36 30
to become more customer-focused as a legal team. Lawyers now help develop
business plans and are pursuing a strategy to litigate claims as a plaintiff and
recover money for the insurer.
ensuring we are focused and connected to the
rest of the organisation.
In the near future, he says, lawyers will need
to handle new challenges presented by distrib- Commended
uted ledger technologies such as bitcoin, cyber Inpex Corp A specialised and highly skilled legal team was recruited in Japan, allowing the Japan 8 29
(Japanese legal business to bring most transactional work in-house and save up to 45 per cent on
security and data protection. team) external legal fees a year. Flexible hours and attractive parental leave have helped
attract new talent.
Mr Graat adds that automation and AI will
affect not only the work lawyers do, but also SK Engineering Internationally trained lawyers often play the role of translator and communicator Korea 12 29
how teams are structured, and how lawyers are & Construction
(international legal
to facilitate foreign projects for the Korean construction company. Their analyses of
bilateral international treaties and legal risks are helping the business pursue a new
trained and motivated. If lawyers are not pre- team) model of making long-term equity investments in projects.
pared for what lies ahead, we will struggle to
remain relevant. Takeda The Asia-Pacific legal team was restructured to support the business as it focused Singapore 4 29
Pharmaceuticals on oncology products in the region. Developed a new competency framework
Asia Pacific and a programme of virtual assignments, helping lawyers build broader and more
While technology is having a more visible rewarding careers.
effect on in-house legal teams, particularly in
technology-driven sectors, law firms still play Unilever A 13-lawyer global supply chain and procurement team, led from Singapore, has Singapore 13 29
created a visual contracting approach. Redesigned and standardised templates
an important role. have improved compliance and reduced contract cycle times, allowing contracts
to be managed and created without lawyers.
Westpac turned to Gilbert+Tobin to
run hackathons with the banks law- Barclays Securities Through a new approach to people management, the legal team has been Japan 12 28
yers and staff to develop technology Japan transformed into the most motivated business team within the bank's Japan office.
Lawyers are now highly committed and given opportunities to lead and to develop
products. IAGs in-house legal a range of skills.
team drew on MinterEllisons
expertise to run so-called design- Bouygues Built a team of lawyers whose advice spans infrastructure, construction and Hong Kong 7 28
Construction, Asia entertainment in 17 countries. Corporate culture has changed to ensure lawyers are
thinking workshops to encour- seen as important strategic advisers to the business.
age creative problem-solving,
TransUnion Cibil The Indian legal team has played an industry-leading role driving local legislative India 4 28
while Linklaters is the creator and changes. New litigation strategies ensure disputes are resolved more quickly and
are removed from the courts to be arbitrated.
supplier of the AI technology
Nakhoda, which DBS Bank is now Vector Limited A new legal team structure has facilitated greater collaboration and broadened New Zealand 7 28
developing for its own use. lawyers' expertise in this fast changing industry. It is managing a range of
regulatory issues to help the energy company move into new business areas
The most effective combinations of technol- including smart metering, communications, and solar and battery technology.
ogy and law require companies, law firms, tech-
nology suppliers and alternative legal services
companies to collaborate in new ways. How- AWARD SUPPORTED BY
ever, according to clients, the examples high-
lighted in this report are still too often the wel-
come exception rather than the rule.
FINANCIAL TIMES Friday 2 June 2017 FTReports | 27
28 | FTReports FINANCIAL TIMES Friday 2 June 2017

Asia-Pacific Innovative Lawyers

Ready to think the unthinkable

Work practices
Pressure to offer more
for less is pushing law firms
to experiment with how
they organise themselves,
writes Laura Noonan
F
rom how much they charge to how
work is assigned, some of the Asia-
Pacific regions top law firms are over-
hauling how they are organised.
Fierce competition for work and pres-
sure on fees have forced the lawyers to over-
come some of their traditional cynicism on
innovation, in ways that management and staff
would not have imagined only a few years ago.
The changes can affect all areas of a firm,
whether it involves stripping senior lawyers of
their right to allocate work or challenging secre-
taries to come up with their own initiatives for
dealing with lawyers and clients. Some firms
have even abolished the hallowed partnership
structure in favour of a more inclusive form of
leadership.
The innovation is largely driven by the
financial crisis and companies generally need-
ing to do more for less, says Titus Rahiri, direc-
tor at Hong Kong-based KorumLegal, a bou-
tique legal consultancy that works for law firms
and directly for clients.
Charlotte Rushton, managing director for
large and mid-sized US law firms at Thomson
Reuters Legal, its legal services business, says
clients everywhere are demanding predictabil-
ity of costs as well as lower charges. This is forc-
ing law firms to plan pricing and work allocation
in a more systematic way. Its what the
accounting firms and other professional serv-
ices providers have been doing for decades.
Sydney-based Corrs Chambers Westgarth is
so eager to meet these challenges that it is
working with Harvard Business Schools Organ-
ization Lab, a forum that helps businesses to
experiment with new organisational practices,
in an attempt to pinpoint how it should change.
The legal industry doesnt sufficiently apply
experimental rigour to how it organises itself,
says Robert Regan, partner at Corrs. The exper-
iment is in its early stages, but the firm is confi-
dent that it will lead to better ways of working.
The Sydney, Perth and other Australian
offices of Ashurst are also trying to apply a more
scientific approach by introducing work allo-
cation managers to replace a process where
Youd have really good lawyers
who might not be used to the
best of their capacity because
they were in the wrong spot
partners were largely responsible for deciding
juniors work. It is, however, still the job of
partners to work out which projects need which
legal skills.
Naturally, you would [previously] have
some lawyers who were getting overworked and
others who became under-utilised and
frustrated, says Geoff Gishubl, partner at
Ashurst, based in Perth. Sometimes youd have
really good lawyers who might miss out and not
be used to the best of their capacity, because
they were literally in the wrong spot, sitting in a
corner or not next to the partners who were the
most busy.
Other Ashurst offices are also using the
workforce allocation manager system, so the
Sydney workforce can be easily called on for
time-critical projects on the other side of the
world. There were plenty of partners initially
who were quite cynical, says Mr Gishubl.
Ashurst drafted in lawyers who had seen the
system in action in London in order to win over
opinion in the Sydney office. A year on, Mr
Gishubl says: Our [staff] retention rates have
improved, our utilisation rates have improved,
and generally things are working more
effectively and more productively.

Business of Law: Strategy & Changing Behaviours

innovation
Originality

Rationale

Impact

score
Total
Firm

Standout
MinterEllison A cultural change programme which translates the firms innovation strategy into practical steps by 7 8 8 23
getting lawyers and staff to challenge how and where they work on specific tasks. Teams test new ways of working
over up to eight weeks before reporting back and refining the ideas. Innovations that have been implemented
are changing daily working practices for secretaries and associates, and have measurably both increased client
interactions and flexible working at the firm.

Highly Commended
Nishith Desai Associates Replaced partner job title with leader as part of a move to a leadership model where 8 8 6 22
lawyers take greater responsibility for managing themselves. The model also gives lawyers unlimited leave and no
targets.

Corrs Chambers Westgarth In collaboration with Harvard Business School Organizational Lab, the firm is running a 7 8 6 21
field experiment to collect data under rigorous academic standards on law firm productivity. The data will be publicly
available and will contribute to industry understanding of how legal work is allocated and resourced.

Linklaters Working with start-up Otonomos to develop a blockchain model for company share ownership and 6 7 7 20
governance. The firm used the opportunity build its network, profile and expertise in the emerging area of technology
and finance, doing most of the work pro bono.

Commended
Ashurst A new innovation system, which includes a competition, innovation IQ test, external collaborations and a 5 7 7 19
series of training and events, has engaged three-quarters of the firm in less than a year and seen more than 30 new
ideas implemented.

CMS Building on an established sector approach and network of local firms, the firm is connecting leading UK and 6 6 6 18
Chinese Universities to help them expand and collaborate, while building the firms industry profile and practice in
the region.
FINANCIAL TIMES Friday 2 June 2017 FTReports | 29

Asia-Pacific Innovative Lawyers

Really good lawyers might miss out good for the individual, Ms Glendinning adds.
because they were in the wrong spot: Andrew Cunningham, Sydney-based partner
Geoff Gishubl, partner at Ashurst and innovation leader at MinterEllison, says
Aaron Bunch for the FT Empower will become a permanent fixture. The
firm has been pleasantly surprised at how lit-
tle resistance the programme has faced, since
lawyers can be a tad cynical sometimes about
Managers at Australian firm MinterEllison this kind of thing. In fact, he says, some are
are similarly enthusiastic about the impact of its putting themselves forward for the scheme.
Empower programme, which is designed to Organisational innovations extend to how
challenge the normally risk-averse mindset partners are remunerated. Asia-Pacific head-
you notice in lawyers and asks staff across the quartered firms are experimenting with differ-
firm to come up with new ways to overhaul their ent models of partner compensation to drive
own divisions. more collaborative behaviour, says Tony Kin-
Its about encouraging innovation at every near, managing director, Asean and North Asia
level in the team and often the best ideas come at Thomson Reuters.
from the most unexpected places, says Fiona Indias Nishith Desai Associates has dropped
Glendinning, MinterEllisons chief experience the term partner in favour of leader to allow
officer. Our secretaries, for example, have more dispersed decision-making. After exten-
blown us away with their ideas to create a better sive internal debate, the firm says, it decided
experience for our clients, she adds. They are that the narrow 200 year old partnership
often the critical glue that holds things together model should be replaced with a self-managed,
from an operational perspective and their dynamic network with distributed leadership
involvement means that they are aware of what that was about competency and inspiration,
the team is trying to achieve. not ownership.
Innovations from lawyers include working Mr Kinnear also highlights outsourcing and
on-site for clients when drafting complex technology as focuses of innovation in the busi-
advice. The piece of work is done more effi- ness model for law firms. He cites in-house
ciently which is good for the team, ultimately developments such as Herbert Smith Freehills
saving the client money good for the client, Alternative Legal Services business, while oth-
and the team member feels empowered to ers are embracing legal process outsourcing,
choose where they work to deliver the best out- where firms pay a third party to carry out proc-
come. [This] creates less angst around the ess work, so they can punch above their weight
whole work-life balance dynamic which is when local teams are manpower lean.

Business of Law: New Business & Delivery Models

innovation
Originality

Rationale

Impact

score
Total

Firm

Standout
Herbert Smith Freehills Opened the first alternative legal services hub in China, and one in Australia, following the 6 8 8 22
model first launched by the firm in Belfast and Dublin. The teams offer a lower-cost and technology-led service to
support a range of transactions, regulatory work and disputes. The Shanghai hub allows the firm to review millions
of Chinese-language documents without needing to transfer data or run disclosure processes abroad, ensuring
compliance with Chinas state secrets law. The hubs also help support an increasing global demand for Chinese-
language legal services and provide round-the-clock support to the firms global offices.

Highly Commended
Corrs Chambers Westgarth CorrsEdge is an online legal resource for start-ups that allows businesses to automate, 7 7 7 21
execute and store legal documents. Legal documents and tools cover a businesss lifecycle from start-up to
acquisition or sale.

Herbert Smith Freehills A new way of packaging and pricing complex legal work, detailing tasks, activities and 7 8 5 20
deliverables alongside fixed fees. The more granular and transparent approach allows clients control over costs and
which tasks they buy, and has helped the firm win key client mandates.

Commended
LOD - Lawyers On Demand Developing the business in Asia-Pacific and a new time recording app. The smartphone 6 6 7 19
app is used by contract lawyers to record time and activities automatically, giving clients an overview of their work
and integrating with LoDs finance system to generate bills and invoices.

Norton Rose Fulbright In collaboration with cloud legal services provider LawPath, the firm offers a range of fixed-fee 6 6 6 18
packages to start-ups, combining production of legal documents and a specified number of hours of legal advice from
the firm.
30 | FTReports FINANCIAL TIMES Friday 2 June 2017

Asia-Pacific Innovative Lawyers

Innovative lawyers Ten Asia-Pacific lawyers who Andrew Cunningham

stand out for their willingness to try fresh ideas Partner and innovation leader
MinterEllison

In his full-time, non-fee-earning role,

Experiments in
Andrew Cunningham is using innovation
to underpin strategy at MinterEllison.
The law firm is the largest one based in
Australia, with more than 200 partners
and 700 lawyers in total. Established in
Sydney 190 years ago, MinterEllison has offices in eight Australian cities

law firm thinking

and internationally in New Zealand, mainland China, Hong Kong, the UK
and Mongolia.
Mr Cunningham is a former employment partner, who managed the
Sydney and Perth offices. He is currently a member of the executive
leadership team and his experience is invaluable as he tells colleagues of
the importance of innovation in business strategy.
The profession for the most part is viewing disruption as simply
another hurdle to overcome rather than a complete shift in the way we
do business, he says.
Mr Cunninghams work takes many forms and he involves colleagues
with programmes that include design-thinking, artificial intelligence,
hackathons and collaborative innovation platforms.

Net Le
Partner
LNT & Partners

Building a law firm in a country where

a legal framework is still developing
is no mean feat but Net Le has
accomplished just that.
LNT & Partners operates in Vietnam
and since 2006 has grown to serve
leading Vietnamese and international clients.
Mr Le, as head of the firms infrastructure and financial services group,
tackles complex commercial problems for clients. He strives to bring
international standards to Vietnams courts, and makes everyday
changes to his practice to advance his firm and the profession. Examples
include setting up forums in which lawyers and clients can come
together.
He likes to combine academic theory and practice in his work. I want
Overall Winner to use theory as a foundation to find solutions in practice and use
practice as a source to reform theory, he says. Mr Le studied for his
bachelors degree in Warsaw, Poland, and his masters in Leuven, Belgium.
Sophie Mathur He followed this with a PhD in law at the London School of Economics,
Partner and global co-head of and continues to lecture at Ho Chi Minh City University of Law.
innovation
Linklaters

An epiphany that innovation is not
only about technology was a turning
point in Sophie Mathurs campaign
to convince her firm that it was time
to change. She set about fostering a
culture that would ensure Linklaters
makes the most of lawyers
creativity.
Ms Mathur, based in Singapore, is one of the firms global co-heads of
innovation. She has been at the forefront of Linklaters approach to the use of
artificial intelligence. One of the innovations of which she is especially proud is
the Nakhoda program, which can read, analyse and report on volumes of
documents regardless of practice area. Her activities extend beyond making
lawyers more efficient: she is also instrumental in improving flexible work
options and career options for millennials.
In corporate practice, Ms Mathur has focused on start-ups on an affordable
basis, which has led to the firm acquiring tech-oriented clients such as Chope,
Otonomos, and Pie which was Googles first Singaporean acquisition.
Ms Mathur is working on a submission to local regulators to support the use
of blockchain technology for corporate governance on behalf of Otonomos.
Sok Siphana
Managing partner
Sok Siphana & Associates
The career of Sok Siphana, the principal of
Phnom Penh firm Sok Siphana &
Associates, has spanned government,
international development organisations,
financial institutions and private practice.
Mr Sok was driven to help rebuild
Cambodian society after two decades of civil war that had led to him
becoming a refugee. He gained law qualifications in both the US and
Australia but chose to return home when the conflict ended. In 1999 he
became a government minister and steered the country towards
membership of the World Trade Organisation. He also helped develop
Cambodias legal system, compiling the countrys laws and regulations,
and was the first secretary-general of the Cambodian bar association. He
is dedicated to inspiring young Cambodians and empowering female
entrepreneurs.
Mr Sok says he would like to reduce the influence of the international
community in the Cambodian legal profession. He feels that while there
has been a strong emphasis on human rights, the commercial practice
areas of law also require attention to develop.
FINANCIAL TIMES Friday 2 June 2017
John Denton
Chief executive
Corrs Chambers Westgarth
John Denton is a law firm leader with
connections in high places. He is one of
the founders of the B20, the business
reference group of the G20 group of
leading nations. The B20 was formed
after Mr Denton had put the idea to Kevin
Rudd, then Australian prime minister, as a way to keep G20 members
focused, and adding weight to its deliberations. He is now co-chair of the
B20 task force on financing growth and infrastructure.
Mr Dentons interests stretch beyond business: he is chairman of
Australia for UNHCR, the UNs refugee agency. He is also part of the
chairmanship of the International Chamber of Commerce in Paris. He has
helped both organisations create a platform to formulate a private-sector
response to the global refugee crisis.
Mr Denton has been instrumental in making his firm one of the most
innovative in Australia, bucking the trend for firms to merge or form
alliances with other law firms. He is a champion of global connectivity.
We believe that our connectedness will be the source of our power and
influence in this century, he says.
Masakazu Masujima
Partner
Mori Hamada & Matsumoto
Masakazu Masujima is an archetype of
the modern international lawyer: he is
qualified in both Japan and the US, has
experience of Silicon Valley and a record
of nurturing financial technology in Japan.
Mr Masujima has worked in the public
sector and private practice and with government and international
bodies. This wide experience has enabled him to change the mindset of
Japanese financial institutions from super-conservative to being open to
innovation.
He has helped develop Japans fintech industry by educating
entrepreneurs on financing terms and developing a Japanese version of
convertible equity for the sector. He has also formed a not-for-profit
organisation to promote fintech businesses and helped create a legal
framework to facilitate their development.
Mr Masujima would like to see change in how the legal profession
collaborates with other professionals. His motto is think like an
entrepreneur and he feels that this means having an intense focus
on clients.
Philippa Stone
Partner
Herbert Smith Freehills
Philippa Stone is considered by her clients
to be the best mergers and acquisitions
lawyer in Australia.
Ms Stone is joint head of the equity
capital markets practice at Herbert Smith
Freehills, which has helped clients raise
more capital in the past 20 years than any other Australian law firm. She
is often called in on the most challenging bids and acquisitions,
such as the contested bid by Qube for Asciano, the ports and rail
operator, in 2016.
Ms Stone is also responsible for developing the accelerated rights
offer structure. This allows retail shareholder participation in
capital raisings without compromising the ability of issuers and
underwriters to place capital to institutional shareholders in a much
shorter time period.
While Ms Stone is accredited as an individual lawyer in many awards
and rankings, she says she is inspired by her colleagues at Herbert Smith
Freehills. We work together to achieve results we could not achieve as
individuals, she says.
FTReports | 31
Asia-Pacific Innovative Lawyers
Archana Kotecha
Head of legal
Liberty Asia
Making the transition from being a
corporate lawyer to one focused on
human rights was tough for Archana
Kotecha, the head of Liberty Asias
legal programme, based in Hong Kong.
But it was a move she felt she had to
make: The first time I really felt like a lawyer was the day I understood
how the law could be used creatively to protect vulnerable people.
Ms Kotecha grew up in Mauritius and studied political science at the
London School of Economics before being admitted to the English
bar and practising corporate law at two City firms. Her switch to
human rights took her through roles at the Kurdish Human Rights
Project, the UN High Commissioner for Refugees and the
Immigration Advisory Service.
In her post at Liberty Asia, she works closely with law firms in
Southeast Asia to conceptualise ways to combat trafficking using
legal process. For example, Ms Kotecha has worked with the law firm
Ropes & Gray to produce research on connections between
corruption and human trafficking.
Astrid Raetze
Partner
Baker McKenzie
Convincing lawyers that change is coming
and that it will disrupt everyday work is a
difficult task: traditionally, they believe
they are immune to disruptive change.
Astrid Raetze, however, saw how the
confluence of artificial intelligence,
cyber security and new billing practices would affect her firm and her
clients in financial services.
Ms Raetze says she has had to be a strategist, a futurist, an adviser
and a lawyer all in one. Her explanation of how trends would affect
people resulted in her appointment as chair of the innovation committee
for Baker McKenzie in Australia.
Her other achievements include establishing the firms global fintech
group, implementing flexible working arrangements and leading a
design-thinking initiative.
Ms Raetze believes that applying a more philosophical and
multidisciplinary process to solving problems for clients could make
lawyers work more enjoyable, advance women and result in better
working practices and better advice for clients.
Xiao Wei
Managing partner
JunHe
Xiao Wei, managing partner of one of the
leading law firms in China, says one of his
hardest tasks has been to reform the
partnership structure of his firm
revealing that lawyers everywhere face
much the same challenges, regardless of
jurisdiction. Yet Mr Xiao has managed to change the firms remuneration
system, centralise resources and launch a new knowledge-sharing and
collaboration app.
He draws his inspiration from his experience in the public sector at the
China Securities Regulatory Commission, and in the private sector as an
independent director on several company boards. He believes artificial
intelligence can play a large role in the development of the legal
profession and that it could change the legal landscape. He can even
envisage an initial public offering for a Chinese law firm.
Mr Xiaos initiatives show how intense the pressures to change are for
law firms across the world. His forward-thinking would rank him
alongside any innovative law firm leader in the more developed markets
of the UK, US and Australia.
32 | FTReports FINANCIAL TIMES Friday 2 June 2017